Wind Farm Will Benefit All Smelser Township Taxpayers

By Mark Hirsch

 

With an eroding tax base and an expected reduction in the state's shared revenue (county and municipal aid payments) local municipalities and townships will need to adjust their spending or find other sources of revenue to support their operating budgets in 2010 and 2011.

 

In this dire economic downturn, the good luck fairy has offered to sprinkle the dust of fortune on Grant County in the form of a commercial project that fits very well in an agricultural economy. On top of the nice fit, we have the opportunity to augment our budget shortfall with some newfound and state-mandated revenue.

 

That newfound revenue would come in the form of the $80,000 a year Smelser Township would receive in lieu of taxes through state requirements enacted in 2003 Act 31. This act guarantees income in lieu of taxes to the host municipalities. In simplest terms, the additional $80,000 would be equal to 23% of the township's 2008 operating revenue of $350,000.

 

For Smelser Township though, it seems some local citizens would rather pay higher taxes than embrace the financial windfall the township would receive from the proposed White Oak Wind Project.

 

Let's look at the numbers. If the project comes to fruition, the landowners in Smelser, Paris and Hazel Green Townships hosting turbines would stand to earn $400,000 annually from their negotiated lease agreements with the developer. That's a lot of extra income for a cash-strapped farm economy.

 

"Wow, that's great for my neighbor, but why should I care? There is nothing in it for me!" Well, for those who can't appreciate and celebrate someone else's good fortune, there IS something in it for you, too.

 

That something else is shared revenue guaranteed by Wisconsin 2003 Act 31 which provides revenue in lieu of taxes for municipalities hosting wind developments.

 

Here is a breakdown for all of the local revenue that would be generated by the 100-megawatt White Oak Wind Project. Through negotiated lease agreements, landowners would receive $400,000 a year. For hosting the project, Grant County would also earn $400,000 a year and is required by state law to share 40% of this windfall with the host townships. That's $160,000 to be shared with the three local townships. Additionally, the full-time jobs required to maintain the wind farm would add another $200,000 to the economy for a total influx of up to $1,000,000 annually to Grant County.

Currently, Smelser Township is slated to host 50% of the turbines so its share would be $80,000. Paris and Hazel Green Townships would each host 25% of the turbines so they would each receive $40,000 annually.

 

Based on Smelser Township's 2008 annual report, which is posted on this web site, our annual spending was $349,792.96. That means that the $80,000 we would receive annually in lieu of taxes as the host for 50% of the wind turbines amounts to 23% of our annual operating budget. Depending on how the revenue is spent, residents could potentially see a significant reduction in taxes or a dramatic improvement in services.