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Council discusses 3¢-per-gallon proposal to raise about $3 million for roads
Summary
Councilmembers and city staff debated a proposed 3-cent-per-gallon revenue measure intended to fund paving and other street needs, with questions about competitiveness of local pump prices and how revenue would be split.
Council members and staff discussed a proposal to raise an additional 3 cents per gallon on fuel — an increase council members estimated would generate about $3 million — as a source of funding for paving and other street projects.
Council President (name not specified) said the city has historically divided paving dollars across multiple projects and that “3¢ will generate $3,000,000,” adding that staff were prepared to discuss details in a work session but he wanted the proposal on the record for the regular meeting.
Councilmember Jim Wright asked whether Montgomery would remain competitive on pump prices compared with nearby areas. Patrick Johnson, a city staff member, replied that his observations around town and into neighboring Elmore County showed Montgomery often had lower prices; he cited one station near Garrett Coliseum where Walmart fuel was $2.59 a gallon and said nearby stations ranged between about $2.59 and $2.79. “Even at the highest price…that’s still cheaper with a 3¢ add on than…Elmore County,” Johnson said.
Speakers acknowledged price variation across stations and noted that retail price-setting and wholesale pipeline costs, rather than local taxes alone, drive daily fluctuations. Council President (name not specified) and others framed the 3¢ proposal as a way to address growing road and bridge needs, and said the increase would be revisited in a work session for further detail.
No formal vote on the 3¢ proposal was recorded in the transcript.
