URBANA – City council members are going to continue discussions about a proposed local motor fuels tax in Urbana.

Urbana Mayor Laurel Prussing is pushing for a tax rate of 2 cents per gallon. City officials say the local share of the state fuel tax is not keeping up with the rising cost of road work, which that tax pays for.

Heather Stevenson, R-6, is opposed to any local new taxes or tax increase, fearing that motorists will just go to Champaign to buy gas and make other purchases if Urbana adds a tax to gas.

Diane Marlin, D-7, said, "I would want the additional revenue directed toward repair of existing streets and infrastructure, not toward new projects."

Marlin said she has a broader concern about the city budget and thinks spending should have been reduced even more than it has.

"Before we implement a (motor fuels tax) I think we should revisit the budget to re-order our priorities," Marlin said.

The mayor said in a study session Monday she did an informal "spot check" of gasoline prices. The price varied from $2.529 to $2.759 at two Urbana stations on July 9, she said.

She said people would spend more in their own time and driving for a difference of 2 cents per gallon.

Other council members say it's necessary to fix the potholes and maintain the streets in Urbana.

Marlin said her constituents are "not happy with the idea" of a gas tax, but "for sure, they are against money going to new roads. It should go to fixing our streets."

Brandon Bowersox, D-4, said, "It's one way to raise revenues to pay for street maintenance. Some other cities have done it."

Bowersox said he wants to hear more from citizens before deciding whether to implement a local tax.

"Creating a new tax is a really big deal," he said.

Dennis Roberts, D-5, said gasoline is not the main business for most gas station/convenience stores, so any store closings are probably due to the slump in the economy.

Mike Monson, chief of staff to the mayor, said six other downstate communities have local gas taxes, varying from 2 cents per gallon in Peoria to 5.6 cents per gallon in Danville. Danville also has a tax rate of 2.3 per gallon for diesel fuel, he said.

Officials in the cities that impose local gas taxes say prices at the pump don't vary much in surrounding communities that have no local taxes, Monson said.

He said the earlier estimates of $250,000 revenue annually for a 2-cent local tax are probably high and Urbana staff now project revenue of about $175,000 for a 2-cent local fuels tax.

Prussing said after the study session that there would be at least two more public discussions of the gas tax proposal. There were no comments from the public about the proposal at Monday's meeting.

In a separate discussion on a proposed road project, the council directed city staff to proceed with plans for a smaller, less costly multi-use path along the west side of High Cross Road from Windsor Road to University Avenue.

Preliminary estimates for the project put costs at $652,000. Now, the costs are estimated at $1.28 million due to delays related to the Menard's-owned land east of the city, some unforeseen costs including traffic signals and drainage culverts and inflation of construction costs, according to city staff.

City Engineer and Public Works Director Bill Gray said the staff now recommends building the path in phases, with the first phase from Windsor Road to the Po' Boys Restaurant and Sports Complex with city share of the costs being an estimated $310,000.