Wind farm could pay for courthouse fixes

Using expected revenues from property taxes at the Palouse Wind project, Whitman County commissioners hope to make needed improvements to county buildings and balance the 2012 budget.

Commissioners discussed options during a workshop session Monday afternoon.

On the list of improvements is a $572,000 chiller on the jail, new roofs on the courthouse and public service building, a renovation to make the courthouse compliant with the Americans with Disabilities Act and $203,000 worth of information technology infrastructure.

“We need long-term fixes here. We want 20 years to pay for it, but we want to make sure this equipment will last 30-35 years,” said Commissioner Pat O’Neill.

“In 20 years, we’re going to have a cold fusion chiller and we’ll fly up there with jet packs to work on it,” quipped Commissioner Michael Largent.

The list of improvements totals just above $1 million. Administrative Director Gary Petrovich said estimates of wind farm property taxes range from $850,000 to $1.6 million over the next 20 years.

“The question should be what are the next commissioners going to be willing to do,” said Largent.

An audit by energy firm McKinstry revealed the need for improved heating and air conditioning systems in the public service building and information technology department, with the jail chiller in dire need of repair. Those items account for $704,000 of the total price tag.

A program through the state would allow the county to take a low-interest loan and repay it on a long term basis with savings from decreased energy costs.

Information technology projects include new servers, phones and relay switches.

Renovation of the courthouse, which would shift the prosecutor and district court offices upstairs and the auditor’s office downstairs, is estimated to cost $700,000, with previous years’ savings already amounting to $520,000. The renovations would also bring the county into ADA compliance.

Next year’s budget includes a $150,000 contribution to that project. Commissioners are considering elimination of that line item. That reduction would lower the county’s projected budget deficit.

Petrovich reported Monday that added revenues from WSU’s planned expansion of Martin Stadium next year would add about $55,000 to the county’s sales tax revenue through construction taxes. That brings the 2012 deficit to $415,000.

With the $150,000 taken out, the budget would be $265,000 in the hole. Petrovich, though, noted the 2011 budget is about $130,000 closer to balancing than the $330,000 expected deficit from the beginning of the year.

When they passed the 2011 budget, commissioners committed to using $330,000 from cash reserves to balance the budget. They may carry the $130,000 surplus from that dedication over to next year, reducing the 2012 deficit to $135,000.

Whether they simply delay the ADA funding for another year or whether they issue bonds to pay for it, and the heating systems, is being considered by commissioners.

The county would issue 20-year general obligation bonds, securing them with the anticipated property tax revenue from Palouse Wind.

Petrovich said property taxes will start rolling in from the 58-turbine wind farm north of Oakesdale in 2014. Construction began in October and the project is projected to be operational by this time next year.

“We have these capital projects we would like to do – we should do,” said Petrovich. “Now commissioners just have to identify the source of funding for them.”