PELHAM – City Council members voted Monday night to increase the city’s gas tax by 1 cent.

Revenue Director Mike Morgan said raising the tax to 2 cents per gallon would bring in an estimated $350,000

based on what the city receives now.

He also said it would line Pelham up with neighboring cities.

“We feel like we need to stay on the same level as municipalities around us,” Morgan said. “The cost of doing business goes up every day. The cost of employee health insurance, the cost of gas for city vehicles – all of it keeps going up.”

Even with the penny increase, Mayor Bobby Hayes said he doesn’t think the boost will affect gas prices.

“When you pull up to our gas pumps and then you go south [to Alabaster], you’re paying exactly the same thing. You go north [to Helena], you’re paying exactly the same thing, and they have a 3-cent tax,” Hayes said. “The residents aren’t saving any money, and we aren’t saving $350,000 in Pelham.”

Gas prices in Helena include a 3-cent municipal gas tax, while Alabaster charges 2 cents per gallon. Pelham’s current rate has been in place since 1996.

The increase in gas tax will not take effect until Nov. 1 at the earliest