WARDEN - Warden is considering creating a new taxing district to fund street improvements.

The council discussed following Othello and Royal City in creating a transportation benefit district. The discussion followed receiving a letter from City Attorney Anna Franz.

The district's board would be comprised of the city councilmembers.

The board can add a $20 fee to vehicle registrations for people living in the city and institute impact fees on commercial or industrial buildings without voter approval, according to an Othello presentation. It can also create a 0.2 percent sales tax or levy property taxes for specific capital purchases.

All of the money from the taxes needs to be spent on street improvements.

"So this is informational as we go into the budget process," Mayor Tony Massa said.

"(It is) a tool we may want to use in doing that to secure funding because we will not be able to do it all through grants because sooner or later they're going to ask us to step up to the plate ... We're out chasing money and I think it's something we may have to do to continue chasing money."

Massa pointed out rumors the state may tie grant funding to whether the city has created a transportation benefit district.

"That's the rumor we're hearing. There's no concrete (policy,)" he said. "The rumor is from state level on down (having the board) will become a weighting criteria for any grants that you submit."

Having the money the district generates would help the city fix and complete roads, which is one of Massa's eventual goals, he said.

Councilmember Roldan Capetillo asked whether the borders can be expanded to include the school district.

"I have a concern, we've talked about this before, about the school. The buses travel through our streets and we're maintaining (them,)" he said of the proposition.

Massa said the city can't levy a tax on the county, and the $20 fee is charged to fleet vehicles.

"The problem is we have a tremendous amount of fleet vehicles on our roadways in the community," Councilmember Annette Kalous said.

City Clerk Kris Shuler said Franz would be available to answer questions about the district during the Sept. 25 meeting.