WILSON — Discussion of a proposed new transient guest tax dominated Monday’s meeting of the Wilson City Council.

The proposal would increase the tax from the current .25 percent to 2 percent and include the Midland Railroad Hotel and the Simple Haven Bed and Breakfast. The owners of both businesses were at the meeting.

Melinda Merrill, owner of the Midland Railroad Hotel, said she is in favor of the tax, but she doesn’t like the approach the city is taking with it.

“It seems to me this ought to be spread out, which means more than two businesses,” she said.

Merrill said when the bed tax was started she was told it was going to be something to attract tourists to town.

“I’m not hearing the same thing now,” she said. “I thought this was supposed to be a tourism-oriented money that comes in.”

Merrill asked what would happen to the tax if the Midland were to close.

“I employ 15 to 20 people, so there goes the bed tax,” she added.

Merrill then asked why the council isn’t looking at other avenues of revenue.

“There’s got to be a different way besides these one shot grants that we do,” she said.“I resent that I’ve spent $3 million in this town and you come to me and want to add on to my cost that I push on to my guests when I’m still trying to make it in this town. I think that is not a good way to develop businesses. Now if you come to me and you say all of that is going to go to marketing and getting more people in here, I’m right there with you.”

Merrill said she and Joe and Susan Curtiss, owners of the Simple Haven Bed and Breakfast, would be willing to serve on a board that would decide where the funds raised from the bed tax would go.

“I think we have done a lot for this town, but if we can’t use tourism monies to sustain it, I think that is a really tough thing,” Merrill said. “As much as we are all trying right now to make this a destination resort, we should really be looking at where those tourism dollars are going.”

Mayor Larry Ptacek said the council has made no decisions on the tax and nothing is carved in stone.

Ptacek said the tax was started to keep Ellsworth County from developing its own tax.

“We did this as a block,” he said. “They would get our money and we’d have nothing to say about it.”

Merrill said instead of jumping to 2 percent, the tax should be increased gradually.

“If we could look at it as more of a growth, I think that would be very helpful,” she said.

Ptacek asked Merrill and the Curtisses to put their ideas on paper and present them to the council. A group of volunteers will also be sought to look at the tax and make recommendations to the council.

In other business:

• Joshua Tipton of Holcomb was appointed by Ptacek as Wilson’s new police chief. Tipton begins his duties next week.

• Ted Soukup, city superintendent, said the second small Czech egg will be placed on the sidewalk on Main Street within the next week. Ptacek said the council approves of the egg installations.

Due to a scheduling conflict, the next meeting of the Wilson City Council will be at 7 p.m. Tuesday, May 7.