OTHELLO - Othello is considering adding an up to $20 vehicle registration fee to help pay for street repairs.

The city council approved moving forward with creating a transportation benefit district. The process includes holding a public hearing and approving an ordinance.

The district would allow the city to charge a vehicle registration fee up to $20, according to city records. The money the city receives from the fee must be used for preservation, maintenance or construction of "local transportation infrastructure."

City officials are looking at creating a district after several cuts in state funding, City Administrator Ehman Sheldon said. He pointed to the loss of revenue from the motor vehicle excise tax following the approval of Initiative 695 by voters in 1999.

"We used to get some other funding from the state ... for street improvements," he said. "So this is a vehicle (tax) that would allow us ... to recover funding for the city."

The cost of construction for the streets rose in the same period of time, Sheldon said. He used an example from the city's nine-year transportation plan created in 2004. In the plan, the city expected $200,000 would allow the city to fix 44 blocks in neighborhoods.

"Today, with that same $200,000, we can do 14 blocks," he said. "So we've lost money and increased our cost."

If the city creates the district and charges $20, Sheldon said it would result in $129,000 a year. The money would help to replace some of the funds the city is spending on street repairs and improvements.

"Our current general fund contributes $460,000 a year to the street fund. So if you create a transportation benefit district, you're also helping the general fund," he said.

The general fund includes other city services, including police, parks and the city administration.

The state allowed city and county governments to create transportation benefit districts in 2007. Sheldon said the city council would become the district's board.

"You would have to meet separately than the council would meet. You would have to do a separate budget. You would have to pay the city for doing the improvements," he said.

If the city decided to make the fee higher than $20, it would need to be approved through a vote, Sheldon said.

"There is some state legislation ... pending that may increase that from $20 to $40. It hasn't happened yet," he said.

Mayor Tim Wilson wanted the city to pursue it. He pointed out the city would be taxing the people using the streets.

"I think it's a very fair tax," he said.