EPHRATA - A proposed Othello taxing district drew more support from residents during a second public hearing.

Most people supported creating a transportation benefit district in the city, but wanted the city to pursue a 0.2 percent sales tax increase, rather than a $20 vehicle registration fee. They called the move more fair to the people in the city.

If the council decided to create the district, it has the ability to add a $20 fee to vehicle registrations without voter approval. It also can add one-year property tax levy, increase sales tax by 0.2 percent or add a between $20 and $100 charge for vehicle registration with voter approval.

The money raised in the district is required to go to street improvements, according to city records.

State funding sources want cities to use all possible revenue sources before looking to the state for funding, City Administrator Ehman Sheldon said.

"A new member of the state transportation board has sent us a note that basically says, the city will not receive any more funding from the state, grants or loans, unless the city itself has imposed all revenue sources that you can," he said.

One of the questions in grant and loan applications is going to ask whether the city has set up a transportation benefit district, Sheldon said.  

After several questions about a 1985 sales tax increase, Finance Director Mike Bailey pointed out the city was collecting between $409,912 and $474,896 from 2002 to 2006. When he became finance director in 2007, he started budgeting the amount as $460,000.

Bailey also contradicted earlier statements, saying no money from the general fund is transferred into the street fund.

Sheldon previously said establishing the district would allow the city to pull money from the street fund back into the general fund.

The city has about 33 miles of paved streets, according to city records. About 15 miles were rated as good, 8.7 miles were rated as fair and 9.6 miles were rated as poor.

Public Works Director Terry Clements said the poor areas have grooves in the road and a high amount of cracks.

"You could crack seal them and crack seal them and crack seal them, and you will never catch up," he said. "We need to do something with the streets that we have. Some of these streets ... Larch and Spruce (have) about 20, 30 years since anything has been done."

Dave Sperl, an Othello-area resident, called taxes the cost of civil living. He included well-maintained roads in his definition of civil living.

"I believe the citizens of Othello, all of them, would like smooth, nice streets, clean water (and) good infrastructure," he said. "I think that any reasonable person will realize that in the last few years, the cost of labor, the cost of piping, the cost of asphalt has gone up dramatically and we need to do something to close the gap."

Sperl supported the 0.2 percent sales tax, saying he doesn't live in the city, but uses the streets all the time.

Chamber of Commerce President Shawn Logan questioned whether some of the projects planned for lesser used streets could be moved to higher use streets.

"If you look at First Avenue, the whole street, from Main Street south to highway 26, it's .. in poor condition," he said. "That is one of the main gateways into our community, and if you look at the future overlay map ... it doesn't appear that First Avenue is on your plan to pave or improve in the next three or four years."

The chamber's board realizes costs to maintain streets are increasing, and preferred the 0.2 percent sales tax increase rather than the vehicle registration fee, Logan said.

"It's more equitable to the people who shop here and use our streets," he said.

Bob Fuller, an Othello resident, pointed out the $20 vehicle registration fee would include people with a post office box in the city. He echoed earlier support for the sales tax increase, and for street maintenance.

"A lot of people who have post office boxes over here don't live within the city," he said. "I find that a fault that goes back to the origins of this country - taxation without representation."

Jerry Limon, an Othello resident, supported the sales tax increase, saying it would be more equitable and it would mean more money would come to the city.

"It might be a more reasonable approach than just the folks living in the city limits paying $20 for the 4,800 licenses on vehicles," he said.