WATERLOO -- Many questions still surround the coal-fired power plant proposed east of Waterloo, but there isn't much question the project would be a big financial benefit to the area.

The project, a 750-megawatt plant proposed by LS Power, would generate about $3.15 million per year in taxes once the plant goes online in 2011, with $1.9 million going to local taxing districts.

Utilities such as the proposed power plant do not pay property tax, but pay a tax based on the amount of power generated. The numbers provided are based on several estimations. The tax revenue is based on current tax rates and assumes the plant is running at 80 percent capacity for the entire year.

The city of Waterloo would receive the largest sum of money, assuming the plant site is annexed into the city limits. Robert Colozza, project manager for LS Power, said annexation would not change the company's plans.

"For us, we don't have to be in the city for our project to move forward," Colozza said. "We pay the same amount of taxes."

Based on current estimations, the city of Waterloo would receive about $851,363 per year from the plant. Waterloo Mayor Tim Hurley said the revenue could be used for a wide range of items.

"It could mean more services or restored services, or it could forestall future tax hikes," Hurley said.

Hurley said had the revenue already been available, current budget constraints would be eased. "We wouldn't have had to cut police officers and firefighters and programs," Hurley said.

Annexing the land doesn't change school district boundaries, so Dunkerton Community Schools would receive about $641,688 per year.

Robert Cue, superintendent for the Dunkerton school district, said such a revenue influx could mean offering more classes, adding more staff or addressing structural needs.

"The big thing would be creating more learning opportunities from there," Cue said.

With an enrollment of 506 in the district, that averages more than $1,200 per student, or the equivalent of a notebook computer per child.

The money is likely to stay within the Dunkerton district. Dean Meier, chief administrator for Area Education Agency 267, said the school boards of each of affected district must agree to any change in boundaries.

"I'll tell you that happens very rarely," Meier said.

Sharon Miller, spokesperson for Waterloo Community Schools, agreed.

"The tax revenue to Dunkerton is a good thing for them, and I can't imagine a school district being willing to give that up," Miller said.

Black Hawk County stands to gain about $338,148 per year in tax revenue. County Supervisor John Miller said the revenue would be helpful, but he is concerned about the strain construction of the plant would put on county roads and bridges without revenue coming in to keep up those structures.

"Our roads and bridges are not necessarily made for that," Miller said.

Other local entities receiving tax revenue from the plant include Hawkeye Community College, $47,418 per year; the assessor's office, $13,697 per year; the agricultural Extension Service, $1,906; and a state tax, $178.

Tax revenue from the plant would go to the state before being dispersed to the local taxing entities. Dick Stradley, administrator of the Iowa Department of Revenue's property tax division, said the remaining tax dollars, about $1.25 million, would be split among Iowa counties with transmission lines running from the plant to the power's destination.

Contact RC Balaban at (319) 291-1418 or rc.balaban@wcfcourier.com.