OTHELLO - An Othello proposal which may increase vehicle registration costs for residents is receiving a second public hearing.

Mayor Tim Wilson announced the public hearing for the transportation benefit district at a recent city council meeting. The April 23 public hearing is being held during a council meeting starting at 7 p.m., at city hall, located at 500 E Main St.

"Staff is preparing a fact sheet on street improvements," he said. "The fact sheet will be available this week. Share with your friends and neighbors and see if it answers their questions."

Wilson wanted to make sure residents understand the issues around the taxing district and how it would affect road construction, he said.

The proposed transportation benefit district was the focus of a recent public hearing, and drew concerns from residents. If the council approved the proposal, it would create a new taxing district. The councilmembers would form the board controlling the district. The board could increase vehicle registration fees up to $20 without voter approval. It could increase property taxes or the registration fee by more than $20 with voter approval, City Administrator Ehman Sheldon said.

The money collected goes to the street fund. The city presently transfers money from its general fund to the street fund. Sheldon pointed out the city could put the money back into the general fund. The general fund pays for items such as police and city administration.

If the city imposed the fee, it would net about $64,000 in 2012 and about $128,000 for 2013, he said. Farm vehicles, campers, off-road vehicles, snowmobiles and mopeds are among the vehicles exempted from the proposed fees.