Use of tax revenue - Deposit in special fund.
San José Municipal Code § 4.54.090
in effect4.54.090 - Use of tax revenue - Deposit in special fund.
A. All of the taxes collected under this chapter shall, subject to the provisions hereinafter set forth, be expended for the acquisition, construction, reconstruction, replacement, remodeling, modification, alteration, enlargement, renovation, furnishing, and refurnishing of the following improvements, including preventive capital maintenance and energy efficient capital improvements, and subject to the limitation set forth below, for operating maintenance of certain of the following improvements, to wit:
1. City public library facilities, equipment and materials, including land and interests in land, library buildings, furniture, books, circulating or reference nonbook library materials, furnishings, equipment, parking areas, streets and sidewalks adjacent to city public library facilities, and other works, properties, structures and facilities necessary or convenient for the public library system of the city. Expenditure may also be made for the leasing or rental of books.
2. City fire protection facilities, including land and interests in land, fire stations, fire engines and trucks, other motorized and nonmotorized firefighting equipment, streets and sidewalks adjacent to the city fire protection facilities, and other works, properties, structures and facilities necessary or convenient for the fire protection of the city.
3. City public park, recreation areas and facilities, equipment and materials, including land and interests in land, swimming pools, courts, children's play areas, turf, sprinkler systems, community center and recreation buildings, streets and sidewalks adjacent to city park, playground and recreation facilities, and equipment for maintenance, security, and recreation purposes at city parks, playgrounds, and recreation facilities and other works, properties, structures and facilities necessary or convenient for public park, playground and recreation purposes. Additionally, for any of the facilities described in this category A.3 constructed or installed within or upon any public school grounds or other public properties where city is given a right to use the same for public playground or recreation purposes. Further, for repayment of expenditures made in fiscal year 1982-1983 only, a reallocation of funds to the city public library facilities program (category A.1, above) from the Council District 2 parks program for the construction of the Santa Teresa branch library; and for repayment in a subsequent year, or years, to the city public works maintenance facilities program (category A.5), of amounts previously loaned to the library facilities program (category A.1) for the construction of the Santa Teresa branch library.
4. City maintenance yards for park, playground and recreation facilities, including land and interests in land, buildings, streets and sidewalks adjacent to city maintenance yards for park, playground and recreation facilities, and other structures or works necessary or convenient for the maintenance of the city's parks, playgrounds, and recreation facilities.
5. City public works maintenance facilities, including land and interests in land, buildings, streets and sidewalks adjacent to city public works maintenance facilities, and other structures and works necessary or convenient for the maintenance of the city's public works, and for fiscal year 1982-1983 only, a loan to the city public library facilities program (category A.1, above) for the construction of the Santa Teresa branch library.
6. Communication facilities, including land and interests in land, buildings, structures, radio and other equipment, streets and sidewalks adjacent to city communication facilities, and other works, properties, or structures necessary or convenient for the communication facilities of the city and also including a communication services study to determine the future communication facilities needs of the city.
7. General municipal improvements only as specified in an ordinance or resolution adopted by the city council.
B. With respect to all taxes collected under this chapter, at least forty-eight percent of the taxes collected in any fiscal year on account of construction in a district (hereinafter referred to as "district of origin") shall be expended for the purposes set forth in category A.3, above, situate in the district of origin. In fiscal years 1988-89 and 1989-90 ten percent, and in fiscal years 1990-91 and 1991-92, fifteen percent, of the taxes allocated to each district of origin for expenditure on purposes in category A.3 may be expended in any part of the city based upon need as determined by the council and without regard to district of origin. Such funds may also be expended for reimbursement of city's expenses incurred in assessing the needs of the districts. Additionally, to the extent that taxes collected and to be distributed to each district of origin for each fiscal year exceed the sums set forth in the city's proposed 1988-93 five-year capital improvement plan, as proposed, such excess sums shall also be expended for category A.3 expenditures in any part of the city. Up to and including, but not more than, sixteen percent of the taxes collected in any fiscal year on account of construction in a district may be expended for improvements in category A.3, above, in any part of the city, or at San José Family Camp located in Tuolumne County, California, without regard to district of origin. Up to and including, but not more than, thirty-six percent of the taxes collected in any fiscal year on account of construction in a district may be expended for improvements in categories A.1, A.2, A.4, A.5, A.6, and A.7 above in any part of the city without regard to district of origin, provided that expenditures may also be made for improvements in category A.2 which are situate outside the city except that expenditures for public streets and sidewalks may be made only for public streets and sidewalks situate in the city. Expenditures may also be made for the repayment of expenditure of library program funds made in fiscal year 1982-83 only (category A.1), which were reallocated from the Council District 2 parks program for the construction of the Santa Teresa branch library, however, such expenditures shall not be considered as a part of the above thirty-six percent limitation.
Any amounts loaned to the library facilities program (category A.1) by the public works maintenance facilities program (category A.5), shall be repaid by the Council District 2 parks program to the public works maintenance facilities program (category A.5), in such amounts and at such times as the city council shall determine.
Expenditure of amounts repaid on a loan from the public works maintenance facility program (category A.5) for the construction of the Santa Teresa branch library shall not be considered in the calculation of the thirty-six percent expenditure limitation set out above in the fiscal year of such repayment.
As used herein, "district" means a council election district established pursuant to Section 403 of the charter of the City of San José; provided, however, that if the boundaries of said council districts are changed during any fiscal year, those districts in effect at the beginning of that fiscal year shall, for the purposes of administering the provisions of this chapter, be continued to be used for the remainder of that fiscal year.
Not more than ten percent of the taxes authorized to be expended in each category A.1 through A.7 may be expended in each such category for operating maintenance costs of capital facilities acquired or constructed with taxes collected under this chapter which first become operational on or after July 1, 1983, for not more than a period of five years on any specific capital facility within such categories. Operating maintenance costs shall be limited to salary and nonpersonnel expenses including equipment costs associated with building and grounds maintenance necessary to preserve the value of the physical plant. Capital facilities shall include city-owned public library buildings, fire stations, public parks and playgrounds (excluding Tully Road stables), community center buildings, recreation buildings, swimming pools, recreation courts, recreation and children's play areas, maintenance yards for park, playground and recreational facilities, public works maintenance buildings, communication buildings, parking areas which are a part of any of the foregoing facilities, landscape improvements on the grounds of such facilities and all improvements and equipment which are permanently attached to and affixed to the land or buildings of such facilities.
C. All taxes collected under this chapter shall be placed in the "construction tax and property conveyance tax fund" established by Section 4.80.300 of the San José Municipal Code and used for the purposes set forth in this section. The director of finance shall establish and keep such accounts as may be necessary to account for said taxes.
D. The city council in its discretion may transfer part or all of the interest earned on money deposited into the construction tax and property conveyance tax fund into any special fund or into the general fund.
(Prior code § 16007; Ords. 20494, 20554, 20647, 20766, 20798, 21018, 21070, 21271, 21381, 21382, 22810.)
Source: City of San José, Municipal Code (Municode Library, library.municode.com)URL: https://library.municode.com/ca/san_jose/codes/code_of_ordinances?nodeId=TIT4REFIBUTA_CH4.54COTA_4.54.090USTAREEPSPFUFetched: 11/1/2026