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Lack of wind causes cuts in production tax revenue

Lead Summary
By
Mavis Fodness

Weather in 2018 adversely affected productivity from Rock County’s four wind farms.
Based on production tax numbers released in late February, Rock County will collect $754,440 in production tax revenue, the lowest amount collected since 2012.
Last year, the county received $825,431 from 2017 production numbers. The highest amount collected, $896,429, came from 2014 production.
Wind farms in Rock County include Community Renewables LLC and Community Renewables II, Prairie Rose Wind and Rock County Energy.
County Administrator Kyle Oldre said state revenue department officials researched the validity of the production tax self-reporting process and determined weather patterns were the reason for lower production.
Department of revenue spokesman Ryan Brown pointed to a report released in March from the Institute of Energy Research.
The not-for-profit global energy research organization pointed to the El Nino weather patterns for reduced electrical outputs throughout the Midwest.
The local output reduction resulted in $70,991 less production tax collected this year ($754,440) compared to a year ago ($825,431) and $141,989 less than the amount collected in 2015 ($896,429), the highest amount in the past eight years.
The IER released its report on weather events earlier this month.
The El Nino weather pattern brought calm winds to the Midwest in 2018, reducing wind output by 14 percent despite the addition of new turbines to the region.
The 2018 production tax means fewer dollars divided among the townships where the turbines are located and the county.
Amounts (rounded to the nearest dollar) that townships are scheduled to receive in 2019 are:
•Beaver Creek, $1,648.
•Denver, $79,965.
•Martin, $555.
•Rose Dell, $57,475.
•Springwater, $11,245.
Rock County receives $603,552, the majority of which pays for two general obligation bonds the county sold in 2014 and 2015.
The bond payments total $484,850, payable in 2019. The rest of the production tax dollars ($118,702) is placed in the Highway Department capital outlay fund.
In 2014, commissioners approved a $5 million, 10-year capital improvement bond for road and bridge improvements completed during the 2015 construction season.
In 2015 commissioners sold a 30-year, $1 million tax abatement bond for a countywide broadband internet project.

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