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MATL will grow tax base for Hi-Line Counties
By LeAnne Kavanagh
Wednesday, November 12, 2008 10:16 AM MST
Pondera County Commissioner Cyndi Johnson recalls vividly when officials from Montana Alberta Tie Ltd. first approached them four years ago. "The county commissioners insisted the bottom line was MATL must work hard to satisfy the concerns of our local land owners and ag producers." Today, Johnson and her fellow commissioners, Sandra Broesder and Joe Christiaens, believe "MATL has done that to the best of their ability."
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Even though the MATL transmission line will not be located within his county, Toole County Commissioner Allen Underdal believes the line will allow for "subsequent expanded wind farm development," which in turn will lighten the tax burden of the county's taxpayers. Without it, "taxpayers will continue to shoulder the cost of schools and state and local government in Toole County."
The Glacier County Commissioners believe construction of the line will "allow the county to maintain its current tax level and not increase property taxes." That's good news for all taxpayers. County Commissioner Ron Rides At The Door also believes the line "will also potentially bring additional wind energy projects to the area."
And that's even better news for taxpayers, business owners and school administrators faced with declining enrollments, but more federal mandates and less money to meet them.
Tim Tharp, who is the Superintendent of Schools and high school principal for Dutton/Brady, believes "MATL is the necessary first step toward wind energy development in the region." Tharp contends that by expanding the tax base, all property owners will benefit. "As I have told many legislators, we can't rely on the State of Montana and local property taxpayers to cover the growing bills. We need to find ways to grow the pie so that everyone can benefit."
Bob Williams, Vice President Regulatory for MATL, estimates the overall tax revenue for local governments along the approved route is estimated at $731,525 annually. Of that:
According to Williams, the total tax benefit to Montana over the next five years is estimated at $3.6 million and over the next decade tax revenues from this project alone will most likely exceed $7.3 million.
MATL won't be the only new taxpayer in the Golden Triangle area and nearby counties. MATL officials estimate the investment in wind farms currently in the planning phases "is as much as $1 billion. That would translate into $75 million in new tax revenue over five years and $195 million over 10 years," said Williams.
The line's 600 megawatts of capacity have been awarded to NaturEner USA, NaturEner Canada, Wind Hunter LLC and Invenergy Wind Montana.
NaturEner is the first to construct a wind farm in the area. Phase I and Phase II of the Glacier Wind Farm Project are under construction in Toole and Glacier Counties.
Cut Bank Superintendent of Schools Wade Johnson has seen school enrollment drop 20 percent over the last four years. "The MATL line and the accompanying wind projects will bring families to Cut Bank with quality jobs that will help stabilize our student population."
Tharp "welcomes" the approval of the MATL line and the economic development it brings. Without the tax relief of the MATL line and wind energy projects, Tharp believes "we will likely see the continued economic decline of the region. I believe that alternative energy production is one of the best things we can do to sustain our economy and tax-structure."
Supt. Johnson believes "it is imperative that the MATL project is completed, allowing further wind energy development to progress" in Glacier, Toole and Pondera counties.
Cut Bank Mayor Joni Stewart has already seen what kind of impact a wind farm project can have on a community. The Glacier Wind Farm helped Cut Bank retailers, restaurants, motels and rental owners, said Stewart. The City of Cut Bank saw an increase in the number of new accounts for its water and garbage services, said Stewart.
When asked if Cut Bank taxpayers can continue to shoulder the burden of maintaining the level of services and programs they currently enjoy, Stewart replied, "The community support in Cut Bank is wonderful and everyone has a very positive attitude towards maintaining community services," pointing to the recent passage of the annual $50,000 park levy.
But she was quick to note, "Funds received from MATL will help the city address the shortfall of revenues and increase the city's ability to tackle some of the bigger projects on our Capital Improvement Plan."
Commissioner Cyndi Johnson stated taxpayers in Pondera County "have usually been willing to support the services provided by the county. Given the current state of the national economy, we all question our ability to maintain the same level of service. Energy costs have been particularly difficult to manage and budgets are tight all around." Johnson added, "Without some growth and development in our economy, we will experience some reductions in services to our constituents."
She also pointed out, "While Pondera County received no direct impact from the Glacier Wind Farm project, the project provided-and continues to provide-jobs. It also brought families to our communities, which was a definite benefit to local businesses."
MATL officials are confident the construction phase of the project will generate in the neighborhood of $15 million in wages and benefits. Roughly two-thirds of the crew members hired will be paid an hourly wage of $20 to $26; employees hired to operate and maintain the line will earn around $25 per hour. The number of full-time operations and maintenance employees that will be needed once the line is operational has not been determined.
Johnson stated the Pondera County Commissioners recognized efforts by the State of Montana and State Senator Jerry Black of Shelby and State Representative Llew Jones of Conrad in "bringing a good tax relief package to the table" not only for MATL but also affected landowners.
The Montana Legislature worked hard to compensate affected landowners by eliminating property taxes for Class 3 farmland within 660 feet of the centerline of the new transmission line.
Stewart said, "All of the land owners I have talked to look forward to having MATL's presence in the county. I do believe ag producers have been treated fairly by MATL and the State," she added.
Supt. Johnson concurred, noting, "There is always room for improvement. I have visited with many of the impacted landowners, and while most are not completely happy about the new landscape, the landowners with whom I have visited feel they have been treated fairly."
According to Williams, farmers and other landowners whose property is directly affected by the MATL line will be compensated by MATL three ways:
"I believe MATL has done the best they can to accommodate the needs of the landowners and balance that with the benefits to be realized by the region as a whole," concluded Tharp.
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