Gilliam County leaders warn large SIP payments will end as Shepherd’s Flat agreement expires in 2027

Gilliam County officials told a July 8 strategic roundtable that long-running strategic investment program (SIP) agreements tied to local wind projects have produced millions for local services and economic grants — and that one of the county’s largest payments will roll off in 2027.

The county said SIP agreements are statutory, 15-year contracts in which a company pays the county in lieu of taxes; after the contract term the property reverts to the normal property tax regime and the Department of Revenue establishes values. The largest current SIP payer, Shepherd’s Flat, brings about $3,220,796 to Gilliam County annually and will end after the 2026–27 budget year, county staff said.

Why it matters: county leaders told attendees that communities and taxing districts have become reliant on SIP distributions for capital projects, operational grants and program support. The county’s general fund is roughly $5 million and covers day‑to‑day services; SIP dollars have funded capital projects and grant programs beyond the general fund’s capacity.

County staff said recent budget decisions allocated $3,000,000 of available SIP-related funding into a competitive grant program (with $2,000,000 targeted at capital projects and $1,000,000 at operational support) for the current cycle. That mix will be adjusted in future budgets as grant requests and priorities change.

Speakers at the roundtable encouraged civic groups, nonprofits and taxing districts to plan for the reduction in SIP revenue and to prepare projects now. The county also described how SIP payouts historically were passed through to cities, school districts and other recipients and noted that, where SIP agreements expire, some distributions will convert back to property tax receipts and be valued by the state Department of Revenue.

County officials described the Economic Enhancement Ordinance — the county’s local distribution framework for Waste Management tipping fees and other enhancement revenue — and explained some line items: a homestead rebate endowment that grows at roughly 3% and a workforce housing development line (8% of the ordinance distribution). County staff said the homestead rebate will pay $1,500 per qualifying household this year; the endowment growth mechanism was described as the source of that distribution increase.

Officials acknowledged remaining uncertainty about exact future tax yields when SIP agreements convert to property tax. They urged caution about counting on future revenue until new assessments are completed and said the county is considering a mix of preserving reserves, targeted competitive grants and incentives in upcoming negotiations with prospective companies.

Ending note: county staff said the coming two-year window on Shepherd’s Flat creates urgency to map priorities — capital maintenance, workforce housing and early‑learning supports were repeatedly named — and to consider whether to hold more funds in reserve or redirect them into endowments or other long-term strategies.