Decatur City Council approves Local Motor Fuel Tax

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DECATUR – The Decatur City Council voted to implement a local motor fuel tax at their meeting on Monday, February 16.

Council members voted 6-1 in favor of a 5 cents per gallon tax on non-diesel fuel and 1 cents per gallon on diesel fuel with both taxes set to expire in 10 years. Funds collected from the new tax will be utilized for streets and related projects. Members required that the tax revenue be restricted to the construction and maintenance of streets and extensions, sidewalk repairs and maintenance, curbing, grade separations and approaches and engineering services related to such items.

As WAND reported earlier today, the tax is estimated to generate $1.25 million to $1.8 million annually with work anticipated to begin in the next year.

The revenue would fuel projects targeting roads in the worst condition first. Possible exceptions could include if there was an opportunity to support a multi-faceted community development project that could bring greater benefit to the taxpayers of the community.

City Manager Tim Gleason says the City would seek to be as transparent as possible in managing and utilizing the funds, with revenues and expenditures tracked and projects identified on a web site to be developed.

Any project over $20,000 would need to come before the Council for consideration.

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