Apple data center property tax valuation error costs Waukee schools $2.3M, city $3M
A property tax mix-up involving the Apple data center on the western edge of Waukee is costing the Waukee school district and the city millions of dollars, leading both to reassess their budgets to prevent impacts on students, school staff, and city projects.
"It was concerning, right. Probably other words that are more startling in my mind," said Waukee School Superintendent Dr. Brad Buck. He noted that he cannot say some of those words on TV, but they did cross his mind when he learned his budget would lose more than $2 million this year.
"This is just a crazy, unusual thing that the total valuation of your district would change midstream," Buck said.
He first heard the bad news a few weeks ago. Originally, Dallas County valued the new Apple Data Center at $192 million for tax purposes. However, school leaders recently discovered the valuation is closer to $60 million, resulting in a $2.3 million loss from the budget.
Since that money is already in the school budget, Buck said they will have to cut some future programs, although current staff and school programs will not be affected.
"There is going to come this moment where we're going to be situated to do a little dreaming and really expand some opportunities, experience for kids. And, now that's, at least on hold for another year," Buck said.
The city of Waukee will also lose more than $3 million from its budget due to the Apple Data Center value change.
"It was an unusual and unfortunate situation, but luckily, we're in a good position to adjust accordingly," said city spokesperson Heather Behrens. She mentioned that the city has a reserve fund to cover some of the losses.
"It'll probably affect some projects in our capital improvement project timeline. So, like infrastructure, like roads. Exactly what yet, we have to determine," Behrens said.
Buck plans to ask state lawmakers to help recover some of the lost funding and said the district is also discussing its legal options. The county has been contacted for a response, but none has been received yet.
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