Klamath Falls council backs enterprise-zone change to implement state-required school support fee
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Summary
The council approved a resolution to modify enterprise zone agreements to incorporate the statutorily required school support fee (districts set 15%), following a state law change; staff and state representatives explained how districts bill the fee and that the revenue is affected by the state funding formula.
Klamath Falls city officials voted to approve a resolution modifying local enterprise zone agreements to implement the school support fee required under state law.
City manager Jonathan Teichert told the council that the 2023 Oregon legislation (referenced in the meeting as ORS 285 and House Bill 2009) requires school districts to set a school support fee for certain enterprise-zone terms. “The 15% is the minimum. 30% is the maximum,” Teichert said, and he noted that the local school districts established the 15% rate.
Larry Holzgang, regional development officer with Business Oregon, and Julie Matthews, who manages the local enterprise zone for Casita, explained the program and how the fee will be administered. Holzgang said the fee is assessed on the abated property taxes of qualifying businesses in extended enterprise zones and that school districts will be responsible for invoicing and collecting the fee for the county. Both presenters cautioned that because of the state school funding formula the money does not simply remain locally: “It actually goes to the state bucket,” Holzgang said, meaning the net effect on local school funding is influenced by state-level formula adjustments.
Council members asked about administrative burden and who would collect and spend the funds. Presenters said Casita and the county assessor will calculate amounts to bill and that school districts will do invoicing and follow-up. Presenters estimated only one or two businesses in the past would have fallen into the billing category, suggesting limited administrative volume.
A councilor moved to introduce and adopt the resolution; the motion was seconded and carried on a roll-call vote with the clerk recording the affirmative votes. The resolution directs staff to coordinate with Klamath County and affected school districts to implement billing and reporting procedures required by the statute.
The action implements a state requirement for enterprise zones and establishes the local administrative steps to collect the fee; the council did not alter the 15% rate set by the local school districts.
