OTHELLO - Othello created a new board with the aim of funding street repairs and improvements.

The city council recently approved creating a transportation benefit district. The district can apply a $20 increase to vehicle registrations without voter approval, or it can add a 0.2 percent sales tax increase with voter approval.

The money raised by the district must pay for street improvements, according to city records.

The district, run by the councilmembers, is the first created in Adams County. Royal City was the first city to create the district in Grant County, according to the Municipal Research and Services Center of Washington.

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.

The council did not chose which funding option to pursue. Residents spoke at two public hearings on the district, mostly supporting the possible sales tax increase saying it would be more fair because it would include everyone who would be using the city streets.

"What we're doing here is creating a transportation benefit district. There is no decision on $20 or 0.2 percent or any of that," City Administrator Ehman Sheldon said. "(You're) just creating an entity to look at a funding source for streets."

The council is responsible for maintaining, improving and operating of city streets under the state constitution, Sheldon read from the ordinance. The 2007 state transportation plan shows a $6 billion shortfall in the state's ability to fund the mandate.

"That's a study that the state did statewide on all cities," Sheldon said. "The funding dedicated for the preservation and maintenance of the city's transportation infrastructure has been dramatically reduced due to changes in state law."

Mayor Tim Wilson did not know how the council could reject the ordinance, saying that the state is tying possible grants and loans to creating a transportation benefit district.

"We must do anything we can before they start helping us as much as they used to," he said of the proposition.

Councilmember Charles Garcia echoed the comments, saying regardless of whether the councilmembers decide to increase registration fees or institute a sales tax increase, the district needs to be created.

"We might as well take the $460,000 (the city received from a 1985 sales tax increase) and throw it out the window ... if we don't pass this, because we won't be able to pave anything without the state," he said. "Small communities rely on state assistance."

Councilmember Genna Dorow said that the council has an obligation to create the new district because the city might be not be eligible for money from the state if it doesn't.

"We are going to need (grant money) to maintain our streets at the level we would like them to be maintained at," she said. "It just doesn't make any sense not to have this."

Councilmembers Ken Johnson and Ken Caylor agreed with Dorow and Garcia.

Garcia, Dorow, Johnson, Caylor and Councilmember Mark Snyder voted for the district. Councilmember Eugene Bain opposed. Councilmember Dan Dever was not present.