Oregon City reopens debate on non‑taxable properties; staff to pursue options and outreach with county and other agencies

City staff and commissioners reopened a long‑running discussion Aug. 12 about the fiscal impacts of tax‑exempt properties (county, state, colleges, hospitals, nonprofit institutions) in Oregon City and possible ways to recover some public costs or negotiate contributions for city services.

Staff summary and comparative data: Staff (Fonholt) presented comparative percentages showing Oregon City has roughly 23% of its land or assessed value classified as tax‑exempt versus about 8% in West Linn and Lake Oswego, 18% in Milwaukie and 11% in Happy Valley. Fonholt noted that the city previously used targeted fees to capture revenues from non‑taxable properties indirectly (for example, the pavement maintenance utility fee and the community safety enhancement fee). The community safety fee is a flat $6.50 on certain bills and produces roughly $1.1–$1.2 million…