County Wants To Use Wind Turbine Windfall On County Roads

North Mahaska Schools Concerned Students May Suffer

New Sharon, Iowa – The heat and humidity of summer are still having an impact on student days at North Mahaska. The district was looking to solve that issue by adding climate control to their buildings to help student comfort, but also to help preserve the buildings themselves.

Also planned were security improvements to the buildings to help protect students and staff. Things like keyless entry, a camera system and a safe room.

Those plans may be in jeopardy if an urban renewal plan for the Prairie Wind Urban Renewal Area is implemented by the Mahaska County Supervisors.

For the North Mahaska School District, the increased tax revenue from the wind turbines would be several hundred thousand dollars per year, and the board and administration were aware the added taxable valuation would be making its way to the district when property tax was collected.

The current district tax rate is 12.6894 per 1000 of assessed value. When the wind turbines came online, the rate was projected to drop to 10.90 per 1000 of assessed value without the Tax Increment Financing (TIF).

With the drop in assessed value, the district would have been able to leave the tax rate the same and would have been able to bond for the needed upgrades without any additional money needed from the taxpayers of the district.

The TIF being proposed by the supervisors will capture all the property tax savings, effectively pulling the rug out from underneath the school district.

The tax rate will be 12.45 for the taxpayers of the school district if the supervisors were to utilize the TIF, down from the 12.6894 it’s currently at. The difference is, no additional money will be making its way back to the district, while taxpayers will pay nearly the same tax rate.

The Mahaska County Supervisors are looking to bond on the increased tax money, to the tune of nearly 20 million dollars over 20 years.

In a letter to the Mahaska County Board of Supervisors, North Mahaska School Superintendent Angela Livezey states, “While North Mahaska Community School District supports urban and rural development, the school is one of the biggest employers in New Sharon, and it is critical in keeping New Sharon viable. Without the school, it would be difficult to keep the town of New Sharon (and Mahaska County) growing.”

Going on, Livezey stated, “Diverting funds from the North Mahaska District to the roads in Mahaska County significantly impacts taxpayers of the district and the North Mahaska Community School District itself.”

“With TIF in place, we are concerned that taxpayers would endure a hardship with the possibility of an additional tax from the school such as a general obligation bond. Additionally, this impact will be for the next twenty years,” said Livezey.

“We recommend the Mahaska County Board of Supervisors do not implement the proposed Urban Renewal Plan because the proposed actions harm the North Mahaska Community School district and do not directly increase urban development. Additionally, we believe the proposed plan may be in direct violation of Iowa Code 403 as we fail to see how the proposed plan area is a “slum”, “blighted”, or “economic development area” as stated as one of the requirements of tax increment financing (chapter 403 Iowa Code), said Livezey in her letter to the supervisors.

Livezey said she doesn’t want this to be adversarial and is looking out for the best interest of the North Mahaska School district and its taxpayers.

The general scope of the proposed urban renewal plan, as more specifically described therein, involves using incremental property tax revenues produced from wind turbine property to encourage private investment and development that will lead to the creation of new jobs, increase the tax base and promote economic growth in the County and to finance improvements to certain County roads and bridges, as more specifically shown on an attachment to the Urban Renewal Plan.

To utilize TIF, the Supervisors are saying that the county roads are blighted, and their improvement will be an economic driver.

***️Location of right-of-way of roads and bridges to be improved with incremental property tax revenues:

All of the public right-of-way of County Road T-38 beginning at the Mahaska County line and continuing to its intersection with County Road G-5T and;

All public right-of-way of County Road G-5T beginning at the New Sharon city limits and continuing to its intersection with Adams Avenue (Marion County line) and;

All of the public right-of-way of County Road G-29 from its intersection with Queens Avenue and continuing to its intersection with Zephyr Avenue and;

All of the public right-of-way of Osbum Avenue from its intersection with U.S. Highway 92 and continuing to Norwalk Circle and continuing to Newport Avenue and continuing to its intersection with County Road G-39 and;

All of the public right-of-way of County Road G-71 from its intersection with County Road T-39 continuing to the Mahaska County line and;

All of the public right-of-way of County Road G-77 from its intersection with Rutledge Avenue continuing to the City of Eddyville city limits and;

All of the public right-of-way of County Road 267^ Street from its intersection with State Highway 23 continuing to U.S. Highway 63 and;

The bridges over the North Skunk River on County Road G-29 situated between Urbana Avenue and Teller Avenue and;

The bridge over the BNSF railroad on County Road G-29 situated between U.S. Highway 63 and Merino Avenue.

Concerns that money that could help the North Mahaska School District will be used on county roads that will be out of the district, with the money being generated within the district won’t be helping the district. “Our focus should be on our kids and our future, and money should not be diverted,” said Livesey.

Livesey agrees that some roads do need to be repaired and is proposing that the county and the district split the difference, and make it a win-win for everyone.

The Mahaska County Board of Supervisors doesn’t need the approval of the North Mahaska School District, or the city of New Sharon on their urban renewal proposal.

The county is already taking in more money due to the increase in gas tax at the state level. They are also capturing the penny sales tax, and when the tax money from the pipeline starts flowing into the state, they will have that extra revenue as well. These additional revenue streams are on top of the already in place property tax paid by residents of Mahaska County.

The public may speak during a hearing for the Urban Renewal Plan will be at 9:00 o’clock a.m. on September 4, 2018, in the 3rd-floor conference room at the Mahaska County Courthouse.