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Board sets Enterprise Zone school support fee at 15% to preserve extended abatements

Klamath Falls City Schools Board of Education · June 9, 2025
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Summary

The board set the school support fee for Enterprise Zone extended abatements at 15% as recommended by KCEDA and Business Oregon; speakers noted the fee is offset dollar-for-dollar by the state school funding formula.

Julie Matthews (KCEDA Enterprise Zone manager) and Larry Holzgang (Business Oregon) presented options related to the Enterprise Zone incentive program, explaining that longer property tax abatements (4–15 years in special cases) require a local school support fee between 15% and 30% of the abatement amount. The presenters recommended the district set the fee at 15% to remain competitive for extended abatements.

Board members asked clarifying questions about differences between standard three-year abatements and optional extended/rural long-term abatements and whether existing businesses are affected only if they seek extended abatements. The board adopted Resolution No. 25-04 setting the fee at 15% by unanimous vote; presenters noted the fee is offset dollar-for-dollar by the state school funding formula and does not generate net new revenue for the district.