Degelman mugshot (copy)

Farm machinery manufacturer Degelman Industries opened its Hillsboro location in 2016. 

Hillsboro city commissioners stood firm Monday on a “pro-business” stance, recognizing their actions could complicate future budgets for the local school district. 

Commissioners approved a tax incentive for local manufacturer Degelman Industries – after Hillsboro School Board President Tim Kozojed assured city leaders that any negative budget consequences could be handled.

Kozojed urged city leaders to “make the best decision for us as a community.” 

The company sought and received a 50 percent tax reduction for five years and a payment-in-lieu of taxes of $1 per year for an additional five years.

The tax break covers a $2.5 million building expansion to Degelman’s Hillsboro plant. 

Kozojed said the school board had discussed the proposed tax break, recognizing that the school’s tax revenue from Degelman’s property would drop after five years. 

He admitted that the change in cash flow could make budgeting difficult for school leaders. He added that “with five years to plan, we can probably make that work.” 

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