[lurker]

Welperz,
I read this in the early morning and it didn't make sense.
I thought about it during the day and it didn't make sense.
I returned to it this evening and struggled with trying to define who gets what money, who "generates" money (referenced as the State generating revenue???), what money is abated (referenced as 'tax breaks' costing governmental agencies) and simply haven't figger'd out just what Tim Vandenack's wanting to say....

Can anyone explain this to me:

Studies: Cities will benefit

By Tim Vandenack

The Hutchinson News

tvandenackAThutchnews.com

Water use isn't the only measure of an ethanol plant's potential effect.

According to impact analyses done of project plans in Ford and Seward counties, for instance, the two complexes would collectively generate $32.4 million in new revenues over 10 years for local taxing entities. Tack onto that $79.3 million that the state government would generate.

By contrast, the cost to the impacted taxing entities would amount to $10.5 million, most of that attributable to tax abatements. The state would lose just $3.8 million.

Then there are the jobs. The Ford and Seward county plants, which Liberal-based Conestoga Energy Partners is helping develop, would each employ 45 to 55 workers, doling out $4 million per year in salaries. A smaller plant in Finney County, which Conestoga is also helping develop, would employ 33 to 40 workers, generating $1.4 million per year in pay.

Economic development officials in Ford and Seward counties completed the cost-benefit analyses to determine if granting property tax abatements for Conestoga's ethanol projects in each county would be worthwhile.

In Seward County, the analysis fixed the benefit - accounting for a 10-year abatement - at $13.3 million, with the money going to the city of Liberal, Seward County, Plains-Kismet USD 483, Seward County Community College and the Seward County Rural Fire Department. The state would generate another $50 million.

The tax break - sliding by 10 percentage points annually from 100 percent in year one to zero by year 11 - would cost the local entities $3.8 million and the state $62,000.

In Ford County, the study determined a benefit of $19.1 million, with the money going to Dodge City, Ford County, Dodge City USD 443, Dodge City Community College and Spearville Township. The state would generate another $29.3 million.

The tax break - figured the same as in Seward County - would cost the local entities $4.6 million and the state $48,000.

The benefits collectively come from franchise fees, additional school funding brought on by higher enrollment, and increased sales, property and income tax inflows, among other things.

Officials in Seward County have approved the tax break there, and plans are under way to build an ethanol plant near Hayne. Ford County leaders, meanwhile, still have to decide whether to grant the necessary permits before the project could move forward there. Then they would formally consider the abatement proposal.

11/30/2006; 02:37:29 AM

?