HomeMy WebLinkAboutMINUTES - 04231985 - 2.5 ti 0®3
TO: BOARD OF S[1PERVISORis
FROM: J. Michael Walford, Public Works Director
DAZE: March 18, 1985
SaTWT: Report Regarding Tax Revenues on Windmills and Existing Property in the
Byron Airport Area
Specific Request(s) or r s) & Backgrowid and justifIcation
RDCCM ENDATION: .
Accept report on tax revenues for windmills, and existing properties in the Byron
Airport area.
FINANCIAL IMPACT:
The assessor's Office has advised us that normally the windmill farms are assessed on
the total cost of the development. The Assessor developed an estimated per-unit
value for us to help in preparing this report. According to the Assessor's Office,
the value of windmills is depreciated on a straight line basis and the taxes are
reduced accordingly. It is our understanding that this is over a period of five years
with a residual value being placed on the unit at the fifth year, which remains
constant. - The schedule provided us is as follows:
Condition Orig. Cost % Good Full Value Tax Rate Taxes
New 150,000 1.00 150,000 .0125 $1,875 ea.
Mid-Life 150,000 .44 66,000 .0125 825 ea.
Old 150,000 .18 27,000 .0125 337 ea.
At the present time, there is no certainty as to the number of windmills being displaced
as a result of the Byron Airport. Once our airport consultant has identified the
runway layout, we will be able to overlay the necessary areas for protection and
identify the number of windmills potentially displaced as a result of this planning.
It must be remembered that the Byron Airport is currently a privately owned and
operated airport, and the change to a public airport will not have the same impact on
the number of windmills as it would if an airport did not currently exist there.
Continued on attachment: X yes Signature:
Recommendation of County Administratoration
1� Approve Other:
Signature(s) :
Action of Board on: April 23, 1985 Approved as Reooamended x Other
Vote of Supervisors I HEREBY CERTIFY THAT TRIS IS A TFM
AND COST COPY OF AN ACTION TNKEN
x Unanimous (Absent ) AMID FNMM ON THE M]MTIISS OF THE
Ayes: Noes: BOARD OF SUPERVISORS ON DAIS SHOWN: -
Absent: Abstain:
trig. dept.: Public Works/Airport
cc: County Administrator Attested: .ac,c.,�z
Public Works Director Phil Ba or,
Dan Vanderpriem, Planning Clerk of the Board of Supervisors
Aviation Advisory Cc mittee and County Administrator
BY 6 .qty
Page 2
The tax revenue to the County frau the land area needed for the Airport varies from
approximately $4 per acre to $22 per acre. The amount of tax lost to the County will
depend upon the actual amount of land needed for the Airport. Preliminary review
indicates that this loss will be between $8,000 and $9,000 per year.
Offsetting both of these losses, however, will be revenues from possessory interest
assessments on tenants based at the Airport. In addition, any new aircraft based
within the County will generate revenues to the County in a tax amount equal to the
value of the airplane times the tax rate. We are assuming that an improved airport
will attract additional aircraft. We are also assuming that an improved airport will
maintain aircraft currently based in the east county which are likely to be displaced
as a result of the closure of the Antioch Airport.
Our preliminary assessment of the overall negative impact to the County is that during
the first 3-5 years of displacement of the windmills, the impact could be as much as
$50,000 per year. This assumes that windmills that are displaced as a result of the
conversion to a public airport are not constructed elsewhere.
In any case, by the fifth year, the amount of revenue generated by the windmills
becomes relatively insignificant and any loss due to displacement should not exceed
$15,000 per year. Dispite this loss, the new land values created by the airport, as
well as possessory interest tax and airplane taxes on the airport will create a positive
tax flow.
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