Voluntary contributions spur economic development

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Three Warren County communities use check-off programs

Want to get more involved in local economic development? In some Warren County communities, it’s as simple as checking a box.

Last week, every Indianola homeowner and business received a brochure in the mail describing the program, which allows utility customers to check a box to add a monthly contribution for economic development to their utility payments.

The program follows similar moves in Norwalk and Carlisle, which each set up their own check-off programs earlier this year. Both Carlisle and Indianola modeled their check-offs after one that Norwalk established 14 years ago that generates $15,000 a year in funds for economic development.

The concept of soliciting donations through utility bills isn’t new. In 1984, Gov. Terry Branstad initiated Project Helper, a program to assist elderly Iowans in paying energy costs. But asking for economic development funds was a different animal.

“It was kind of a novel idea back at that time,” said Mark Miller, Norwalk’s city administrator. “It was brought to the city council as a way to get some community support and funding to support economic development in Warren County.”

Today, 84 percent of Norwalk’s businesses and more than 50 percent of the city’s residential utility customers automatically contribute each month, and the fund currently has a balance of about $130,000.

Norwalk has used the money for community-wide events such as its July Fourth celebrations, and to defray the expense of serving as a RAGBRAI bicycle event community, which it has done twice.

Check-off funds have also gone out as incentives for companies to locate in Norwalk.

Late last year, Carlisle began a similar effort, calling it the Buck-A-Month Utility Bill Check-off. That program has had a slower ramp-up than expected, said Neil Ruddy, Carlisle’s city administrator. About 80 of the city’s 1,200 utility customers participate.

“The dilemma,” Ruddy said, “is that we have to convince people that it’s worthwhile to spend money they otherwise wouldn’t have to spend.”

The city would like to have about 600 people participate in the program, Ruddy added. Some people are making more than the $1 suggested monthly contribution, netting the city about $100 per month.

Ideally, Carlisle would use the funds to pay its share of funding to the Warren County Economic Development Corp., he said.

Each community’s annual commitment to the WCEDC was recently increased more than fourfold, from 50 cents to $2.25 per person.

Indianola’s recent brochure mailing was an initial effort to publicize the program, said Ray Walton, a member of the board of trustees for Indianola Municipal Utilities.

Walton, who first suggested that Indianola adopt an economic development check-off, said he hopes to see a significant increase in contributors from the publicity. To date, 12 residents and two businesses have opted for the program. Those participants alone bring in $114 per month.

“It’s a really important thing to fund economic development so we can recruit companies and keep jobs here in Central Iowa,” Walton said.