As part of the 2023 budget discussion, Ellsworth County Commissioners held a special meeting Friday morning to review the PILOT (Payment-in-Lieu of Taxes) program for the Post Rock Wind Farm.

“This isn’t necessarily going to change our budget for 2023 or really for 2024,” said Paul J. Kasper, county attorney.

Currently, the wind farm pays the county $470,000, as part of the agreement, which began in 2012. It was a 10-year agreement, and will conclude at the end of this calendar year.

Carl Miller, county appraiser, said the PILOT payment is a very small portion of what a wind farm would pay the county if it were on the tax rolls.

He said most private utilities, such as pipelines, receive 10 year exemptions. Once the 10 years is over, the utility goes on the tax rolls.

In 2014, Miller asked the commissioners if he could go to the state legislature and get that statute changed where wind farms would be exempt for 10 years, then go on the tax rolls.

Miller was successful in getting the law (KSA 79201, part 11) changed.

“That hasn’t been updated since we did it in July 2015,” he said.

“Initially, the legislature left the counties hanging,” said Terry Kueser, former Ellsworth County commissioner. “They said, ‘We’re not going to tax wind farms.’ So the wind farms had free run. They decided, for public relations, they would develop this PILOT agreement.”

Kasper said the purpose of a PILOT agreement is to have an agreement between the wind farm and the county that would assist with the annual budget.

He said, in theory, if the PILOT agreement were to cease, the amount paid by the wind power company would probably be more than the amount of the PILOT agreement.

“If they were going to pay less, why would they sign a PILOT agreement,” Kasper said.

It isn’t necessary to firm up details for a new PILOT agreement immediately.

“It’s just something we want you to be aware of,” Kasper said.

Miller emphasized for budgetary purposes the county should use the $470,000 for the 2023 budget. In November or December, a new PILOT agreement can be negotiated with Post Rock Wind Farm officials.

He said the new PILOT program would start in 2023 and go until 2032, if the county opts for another 10 year agreement.

“That’s up to the county, really,” Miller said. “Some counties put in an escalator now. Like a two to three percent escalator every year.”

Miller said he did not know if any wind farm in Kansas pays regular property taxes.

“Nobody wants to be the first,” he added.

He advised the commissioners to start working on the next 10 year contract with Post Rock Wind Farm.

Miller and Kueser urged the commissioners to contact the Lincoln County commissioners to see where they are at on PILOT payments.

Kueser said Ellsworth County has been good neighbors with the wind farms for many years and they have an impact on the county.

“They should be supporting the county with some money,” he said.