OTHELLO - Several Othello residents opposed establishing a new taxing district aimed at funding street repairs.

The opposition came during a public hearing for a transportation benefit district. The district could add up to $20 to vehicle registration fees for Othello residents. It also has the ability to ask for voters to approve property tax levies or vehicle registration fees above $20.

State law requires the money from the district to go to streets in the city, City Administrator Ehman Sheldon said. If the council created the district, the councilmembers would serve as the district's board.

"It also offers flexibility. It allows cities and counties the ability to work on addressing both regional and local transportation," he said.

If the council moves forward, an ordinance would be created, Sheldon said. The ordinance defines the district's boundaries, the district's powers and functions, and a description of the proposed transportation improvements.

If the city imposed a $20 fee, city officials estimate the city would receive 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 possible registration fees.

"According to the Department of Licensing, and the location code for Othello, the count of vehicles this would most likely apply to is 4,804," Sheldon said. "The revenues from the $20 license fee reduces the (money taken from) the general fund ... It creates a funding mechanism where there is a clear connection between the user group, drivers of the vehicles, and (improvements) to the roadway network."

The city started its present plan for streets in 2002 and focused on the southwest, northwest and northeast sections of the city, Sheldon said.

"Those streets were easily paved or reconstructed without infrastructure work associated with them, (such as) water and sewer lines," he said. "The southeast quadrant is a different story. It has a multitude of water and sewer lines and some storm drains associated with it, so the costs are extremely high."

Jerry Limon, an Othello resident, opposed the fee increase, pointing out issues with the economy and the fairness of the tax. He was the first to bring up a 1985 sales tax increase dedicated to street improvements.

"Adams County's unemployment rate is 12.2 percent as of the end of February. The property tax has increased. The food costs are higher. Everything is going up," he said. "The food bank had the highest requests and distribution of food in nine years."

Social security recipients haven't received a cost of living increase in their benefits in 2010 and 2011, Limon said.

"This is really not the proper time to be raising fees, even though I'm number one for good roads and for a good city," he said. "You have a budget that has been passed already and maybe you should live by that."

Limon pointed out the fee doesn't affect drivers coming into Othello from other areas, saying it is not a fair tax.

"We have a whole lot of people that live out of the area," he said. "The person living outside of the city limits and using our roads is tearing them up as much as a person living in the city, it doesn't cost them anything. The people living within the city limits are taking the brunt of this thing."

Limon suggested the county establish the district.

Sheldon responded the Adams County commissioners are not interested in pursuing a transportation benefit district.

Mike Crosier, an Othello resident, called the district a way to get around the $30 vehicle registration fee established after Initiative 695 passed. He pointed out 57 percent of Adams County residents approved the initiative.    

"Are you deaf to public direction? I would be happy to loan you one of my hearing devices because I heard what the people wanted," he said. "The question then begs asking, 'What do you need it for?'"

Crosier echoed the concerns about the 1985 sales tax increase, asking what the city was doing with the money.

Bob Russell echoed Limon's concerns, saying it's not the time or place to increase fees.

"I didn't get a raise this year. I don't know if you guys did, but I didn't, and my wife didn't, so we don't need another tax," he said. "There has got to be another way."

Othello Chamber of Commerce President Shawn Logan told the council the chamber of commerce has questions about the proposal.

"We were looking for what you guys intended to do with this money," Logan said. "We saw what the current plan is, and we're looking forward to your ideas and talk about this additional $129,000, (and) what the city council planned to do. What specific streets it wanted to pave. That way the chamber and the citizens would have an opportunity to comment."

City documents stated the loss of funding for the street budget was catastrophic, Logan noted. He pointed out the issue wasn't raised during budget discussion.

"I understand costs have gone up to maintain streets, but we're looking for statistical data to prove these conclusions," he said. "The chamber of commerce takes the position that without more information we can't support this taxing district and it's $20 per vehicle fee."

Sheldon said the information on costs for street repairs and the amount of money generated from the 1985 sales tax increase is being generated.

Mayor Tim Wilson pointed out the general fund operating costs stayed the same for the past three years.

"Even though (costs) have been going up, we've held our line on that," he said. "We're watching our budget very closely like everybody else."

Wilson responded to concerns about the 1985 tax increase, saying paving Main Street to Juniper Street cost about $46,000.

"I wish we could do that today," he said. "Broadway (Avenue) to Fourth (Avenue) on Main Street was $90,000. Main Street (from) Fourth (Avenue) to Seventh (Avenue) was $49,000."

Finance Director Mike Bailey said the Main Street project cost the city $6 million, including the water system improvements.

"My philosophy is we maintain the city first," Wilson said. "If you let the roads get too far, you'll never catch up. They're too expensive. You can't do it."

Councilmember Charles Garcia called the issues around forming the district a double-edged sword, saying maintaining the streets is a necessity.

"It does benefit everybody in this community. We drive on these streets. We walk on these roads," he said. "At the same time, a lot of you are right, the economy is terrible ... So where do we find this money? If we don't find it here with $20, we're eventually going to have to find it."

Councilmember Ken Johnson said Garcia was right, and he appreciated the public input.

Councilmember Dan Dever pointed out other issues with fixing the streets in the southeast section of the city, saying the water pipes are steel and tend to rust.

"There's more than one thing at work here," he said. "We've really got to look seriously at what we're going to do with our streets today and in the future."

All three of the councilmembers said they hadn't made a decision on the taxing district.