Klamath Falls outlines how property taxes fund city services and biennial budget priorities

City staff described how property taxes paid by owners in Klamath County and the cities of Chiloquin, Klamath Falls and Merrill are divided among multiple funding categories and how the City of Klamath Falls budgets general-fund revenue on a two-year cycle.

The presentation said property owners in unincorporated Klamath County pay an annual property tax that is divided into a few broad categories, with the largest share going to local schools. Staff said property owners inside incorporated cities such as Chiloquin, Klamath Falls and Merrill pay additional taxes to cover city services.

Staff explained that nearly one-third of the city-level distribution goes to city services such as parks and recreation, street improvements and street lighting, and police and code enforcement. The presentation noted other city services, including water and wastewater, are not funded by property taxes but by fees; those are accounted for in enterprise funds, which must generate sufficient fee revenue to cover their expenses.

The City of Klamath Falls operates on a biennial budget, staff said, meaning city finances are planned for two consecutive fiscal years at a time. According to the presentation, general fund allocations are typically prioritized first for public safety, then for street maintenance and parks and recreation, with remaining allocations spread across about 15 other city departments and accounts.

For more details, the presentation directed residents to the city’s website at klamathfalls.city and to the Klamath Falls app available through the App Store and Google Play.