Archived Story

City mulls fuel tax to pay for road work
By CHELSI MOY of the Missoulian

The Missoula City Council is considering taxing drivers at the fuel pump to pay for local road projects.

On Wednesday at a Public Works Committee meeting, some council members favored asking the Missoula Board of County Commissioners to place a 2-cent gas tax on November's ballot.

Although fuel prices are skyrocketing, fewer transportation dollars are trickling down from the federal government - and the state is passing an even smaller share along to municipalities, said Public Works director Steve King. Montana hasn't increased the state gas tax in more than a decade.

The city of Missoula will receive $8,000 less in state gas tax revenues in fiscal year 2009 than in previous years. The amount is based on a formula, and compared to other parts of the state, Missoula is not growing in population or road miles as much as other areas, King said.

With prices of construction material on the rise and as the list of dilapidated roads grows, city officials charged with funding Missoula's infrastructure needs are worried, King said. Local financing for local projects “is where the community needs to be looking,” he said.

Most council members realize drivers are already dealing with sticker shock at the pump, but “something has got to give,” said Councilman Dick Haines. “We really don't have any other choice in funding street repairs.”

The resolution, introduced by City Council President Ed Childers, urges the county commissioners to put the 2-cent gas tax increase to voters in November. Preliminary numbers suggest the tax would generate $2 million annually, which would go directly to local road projects.

The way Childers figures, if a driver used 10 gallons of gas a week, that's 500 gallons a year and an extra $10 in gas taxes.

The money would be divvied up between the county and city, although the exact split has not been determined. The City Council has yet to talk with the commissioners about the tax proposal.

King identified the Third Street project between Russell and Reserve streets as the city's top priority for new money, if the tax were approved. Others included repairs to Hillview Way in the South Hills and Van Buren Street in the Rattlesnake.

A sticky issue on Wednesday was whether the tax should focus on curb-to-curb construction and maintenance or include things like sidewalks, trails and bike lanes.

In a survey conducted by the city in March, 57 percent of Missoulians polled opposed a gas tax. However, slightly more seemed inclined to support a gas tax if the revenue was also used for pedestrian and bicycle improvements.

Though 65 percent of all Missoula County residents live in the city, Childers questioned whether those living outside the city would go for a tax increase that pays for sidewalks - of which there are few in rural areas.

There was also a dispute over whether the tax should apply to the trucking industry and concern over how it would affect local fuel distributors. The tax would apply to diesel.

In 1995, the state gave counties the authority to levy a gasoline tax of up to 2 cents if it's supported by a majority of the electorate. So far, no county has done so. Missoula County would be the first, Childers said.

The county has already indicated plans to ask voters in November to pay for a multimillion-dollar Emergency Operation Center slated for construction next to the detention center in Missoula. The final cost estimates on that building are scheduled for release Thursday.

No action was taken on the proposed gas tax at Wednesday's meeting. Rather, the committee agreed to address the issue again at next week's committee meeting. Should it earn majority support there, the resolution would go before the entire City Council for approval.

Reporter Chelsi Moy can be reached at 523-5260 or at chelsi.moy@missoulian.com.


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