West Branch council directs hotel/motel-tax policy draft, agrees to franchise fee and rejects city solar

City Administrator Adam Kofoed asked the West Branch City Council on Feb. 5 to formally direct how the city should spend hotel/motel tax receipts, saying Iowa Code requires that 50% of those revenues be used for economic development activities. Kofoed proposed allocating 50% to Main Street West Branch, 25% to Heritage Square revitalization and 25% to savings or reserves; the council was agreeable and directed staff to draft a resolution for formal consideration.

Kofoed also led a broader strategic-planning discussion as staff finalized the FY25 budget. Council members debated whether to prioritize reconstruction of Cedar-Johnson Road or Main Street and discussed installing traffic cameras; neither topic reached consensus and both were tabled for future discussion. Council members concluded that in-house trash and recycling provision is cost-prohibitive and indicated that a Capital Reserve Levy could be increased if it would not raise residents’ tax burdens.

On a separate budget-structure item, the council agreed to implement a 1% gas and electric franchise fee that will redirect the 1% local option sales tax currently billed on electric and gas bills back to the city as a franchise fee. The council also recorded a unanimous vote against pursuing city solar projects during this session. City Engineer Dave Schechinger updated the council on ongoing projects and said there was nothing urgent to report.

Councilmember Jerry Sexton asked whether West Branch Village is being billed for sewer fees for homes recently moved into a new section and when the sewer meter would be operational; Schechinger said he would check the meter’s accuracy and City Clerk Leslie Brick confirmed that billing is up to date.

The Council closed its discussion and then approved the previously noted planning resolutions and adjourned at 8:55 p.m.