Public and council discuss hotel‑motel tax increase and Hometown Heritage tourism plan

City residents and council members discussed a proposal to raise Le Mars’ hotel‑motel tax from 5% to the statutory maximum of 7% and how the additional 2% would be used.

Speakers in the public comment and council discussion described the additional 2% being earmarked for the Hometown Heritage Foundation to manage events such as Ice Cream Days and Hometown Christmas and to promote tourism (examples cited included driving visitors to local shows and shops). Commenters and a council member noted the council approved paying half of a tourism survey cost (a $65,000 study) with some private funds also contributing; the exact private amount was not specified in the meeting excerpt.

City staff and council members clarified that hotel‑motel tax revenue is restricted by state law to certain tourism and visitor‑related purposes and generally cannot be used for items such as streets or a fire station. Councilors also explained that raising the hotel‑motel tax affects hotel guests, not property taxpayers, and that other dedicated revenue streams (for example, local option sales tax) are being used to finance park improvements and other projects. The council noted that the parks betterment project is funded in part by local option sales tax (the meeting record cited roughly $5,500,000 in park improvements being paid with that revenue) and that private fundraising covers the remainder.

Speakers emphasized fiscal trade-offs and said information on funding sources for individual projects is included in council packets; staff said they try to list funding sources in reports so residents understand where money for each project comes from.