Local officials continue to study whether the city should construct a parking garage along Goodale Street that might solve downtown’s parking problems.

Depending on the size and the number of levels, they project it would cost $3 million to $4 million.

Initially, it was proposed as a two-level garage, but it could be larger than that, they said Thursday.

City officials and representatives of Neighbors of Watertown recently met with a national investment house, National Development Council of New York City, to explore ways to secure funding for the proposed garage.

They are looking at several possible funding avenues, including market tax credits. Such tax credits could bring in about 25 percent of the cost, they said. A downtown parking study will be completed before they start seeking funding, City Manager Mary M. Corriveau said.