Council weighs scope and $4.4M shortfall on Mount Gilead road project
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Summary
City staff told council the Mount Gilead reconstruction and a proposed roundabout have risen from an original estimate below $10M to roughly $16.4M; councilors discussed trimming scope, shifting funds and deferring work for future review.
City public‑works staff updated the council Tuesday on the Mount Gilead reconstruction project and a proposed roundabout at the Borland/US‑377 area, reporting construction estimates have climbed to about $16.4 million and identifying a roughly $4.4 million funding gap.
Staff summarized the history: earlier concepts proposed a four‑lane divided section; after public comments and additional analysis the plan was scaled to a three‑lane undivided roadway plus a single‑lane roundabout. At 30% design the project estimate was near $9.9 million. “As we progressed with design and identified needed drainage, utility relocations and other items, the cost grew,” a public works staff member said, noting the project is now roughly 80% designed.
The design team and staff reviewed what drove the increase: added sidewalk and overlay to avoid creating a network gap; underground detention and larger drainage structures; relocating aging water and sanitary mains under the roundabout; storm and sewer work that requires encasements where lines sit close together; and general mobilization and traffic control for a project of this size. Staff estimated the intersection/roundabout portion and associated utility work accounted for about $4–4.5 million of the total; relocating and upsizing utilities and storm structures added several million more.
Staff presented several options to close the budget gap: 1) remove the underground detention (estimated savings about $2.6 million), 2) omit the overlay and sidewalks in the immediate tie‑in (about $400,000 savings) or 3) shift funding from the city’s street‑rehab and utility funds (staff suggested a mix of about $2.1 million from utilities plus available sidewalk/rehab program funds). Staff recommended a combination approach — remove the underground detention and lever some rehab/utility funds — rather than eliminating the roundabout altogether.
Council members pressed staff on lifespan and benefits. Staff said the scaled three‑lane solution would meet projected needs for roughly a decade (depending on development pace) and would increase capacity by about 40 percent over current two‑lane conditions. Several council members said a 10‑year effective lifespan and the $16.4 million cost made them question proceeding now; others said the roundabout would materially improve peak‑hour flow at the school intersection and that doing utilities now avoids repeated future excavation.
Council did not take a final vote or adopt a funding plan. Instead members asked staff to return with narrower options and cost estimates (including a clearer standalone cost for the roundabout/intersection work), and to explore whether some elements can be phased or funded from other programs without creating unacceptable sidewalk or drainage gaps. Staff also said they will gather updated traffic counts and continue coordination with adjacent developers.
The council discussion also covered related capital projects reported in the same update: street rehab and county partnership work (eight full‑reconstruction streets in early 2026), a near‑complete elevated storage tank (final generator pending), and assorted trail, sidewalk and creek‑pier repairs completed or in progress.
Next steps: staff will return with refined cost/option scenarios, a standalone roundabout cost and recommendations on funding trade‑offs for council consideration at a future meeting.
