Wind farm could benefit Henry County schools

MT. PLEASANT — The Henry County Board of Supervisors met with two school superintendents, an RWE Renewables representative, and an expert in property taxes for renewable energy projects to discuss the impact of taxation in consideration of wind energy projects.

Mt. Pleasant Community School District Superintendent John Henriksen and WACO/Highland Superintendent Ken Crawford sat down with the supervisors, RWE Wind Development Manager Matthew Spaccapaniccia, and Vice President with Strategic Economic Research Brian Loomis via phone to discuss specifics for Henry County at the Tuesday, Feb. 27 Board of Supervisors meeting.

“Our question in regards to a possible wind turbine farm being developed on Henry in Henry County and within specific school districts,” Supervisor Greg Moeller asked Loomis. “How's the taxation process work in how does that come back to the schools? Is there an offset from what the state provides the schools for each student in that district?”

According to Loomis, an increase property tax value will result in an increase in property tax revenue leading to new money going into Henry County Schools.

Loomis stated that over the 35 years of the wind energy project RWE Renewables is currently exploring in Henry County WACO Community School District could see new money of about $9.9 million, Winfield Mt. Union School District could see $6.6 million, and Mt. Pleasant Community School District could see $3.5 million.

This money would come in, in a graduated levy over the 35 years with zero taxes in the first two years, going up to 5% incrementally until 30%. It would remain at 30% for the rest of the project from approximately year seven on.

Henriksen confirmed some of Loomis’ statements as he explained school district aid comes from a combination of uniform levy and state aid.

“So, it’s all about valuation,” Henriksen stated.

“You really have to believe the assessed value of any land whether it be housing, commercial, whatever, goes up for it to help our districts out financially,” Crawford commented. “It’s not a straight payment of money. It’s not cash coming in. It’s just the ability to bond on some of that … I don’t know about the $9.9 million, that’s a large number over a long period of time, but anytime the assessed value can go up for the school districts tax purposes, that offers us more advantages.”

Henriksen shared that he was unsure how wind turbines could affect property valuations so, in preparation for this meeting, he reached out to Larry Siegel at Iowa School Finance.

According to Henriksen his response from Siegel said the primary benefit to school districts would come from additional valuation generated by a wind farm.

“The valuation from the wind turbines is 30% of the cost of the turbine starting at 5% per year, and growing by that amount until it’s capped at 30%,” Henriksen informed the supervisors. “So, for example, a $4 million turbine would have a taxable value of $1.2 million once fully phased in. So, if there are significant numbers of turbines, the valuation increase can be sizable.”

According to Henriksen at those figures, one turbine would result in just over $2,000 per year of new money added to a school district budget at the end of six years.

Comments: AnnaMarie.Ward@southeastiowaunion.com