School project would take about 60 percent of total TIF revenue available

Estimate based on 41 wind turbines in TIF district, but 81 more turbines are coming

Greene County can expect $11.8 million in tax increment revenue from the 41 wind turbines MidAmerican Energy constructed last summer, according to Jeff Heil of Northland Securities of West Des Moines.

Heil met with the Greene County supervisors Monday as they hired Northland Securities to serve as underwriter/finance advisor on the county’s tax increment financing plan.

Heil explained his job as assuring that the structure of payments on debt matches the funds available from the increment, minimizing the risk that debt would need to be paid from another revenue source.

He estimates the total value of the 41 wind turbines at $112,750,000. He estimated the property tax revenue on those 41 turbines to be $11,838,000 over the next 20 years. That’s considering the phasing in of taxable value.

The supervisors have agreed to provide $5 million in TIF funding for the construction of the proposed regional academy if voters approve the $21.48 million bond referendum April 3.
The county would borrow $5 million after construction bids on the project are submitted. The increment would pay the debt.

In a worksheet Heil prepared for the supervisors, he used a figure of $5.5 million (auditor Jane Heun corrected him on that figure) and what he called a “high estimate” of interest at 5.5 percent. Over 14-15 years the total cost for the project and interest is estimated at $7.2 million. He calculated that to be 63 percent of the total available in TIF revenue, but added 60 percent was a realistic estimate.

The rate typically paid to an underwriter like Northland Securities is 1 to 2 percent of the total bond issue (debt incurred). The company will charge nothing until the county issues bonds.

The supervisors approved an engagement agreement with Northland Securities.

MidAmerican Energy plans to build another 81 turbines in the county this summer.

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