Use of tax revenue - Deposit in special fund.
San José Municipal Code § 4.54.100
in effect4.54.100 - Use of tax revenue - Deposit in special fund.
A. Notwithstanding Section 4.54.090, commencing July 1, 1990, the city council shall expend monies collected pursuant to this chapter as hereinafter provided.
B. 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 limitations set forth below, for operating maintenance of certain of the following improvements:
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, renting and processing 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; and for any of the facilities described in this category B.3 constructed or installed within or upon any public school grounds or other public properties where the city is given a right to use the same for public playground or recreation purposes.
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 park, playground 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.
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.
C. 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 B.3 above, situated in the district of origin. 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 B.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 the 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 1989-94 five-year capital improvement plan, as proposed, such excess sums shall also be expended for category B.3 expenditures in any part of the city. To the extent that taxes collected and to be distributed to each district of origin for each fiscal year are less than the sums set forth in the city's proposed 1989-94 five-year capital improvement plan or the city's adopted budget for any particular year, such reductions shall be allocated to each district in proportion to each district's share of total tax revenues collected herein. 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 B.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 B.1, B.2, B.4, B.5, B.6, and B.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 situated outside the city, except that expenditures for public streets and sidewalks may be made only for public streets and sidewalks situated in the city. Any amounts loaned to the library facilities program (category B.1) by the public works maintenance facilities program (category B.5) shall be repaid by the Council District 2 parks program to the public works maintenance facilities program (category B.5), in such amounts and at such times as the city council shall determine.
Not more than ten percent of the taxes authorized to be expended in each category B.1 through B.7 may be expended in each such category for operating maintenance costs of capital facilities acquired or constructed with taxes collected under this chapter, 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.
D. Beginning in fiscal year 1992-93, with respect to all taxes collected under this chapter, at least sixty-four percent of the taxes collected in any fiscal year on account of construction in a district shall be expended for the purposes set forth in category B.3, above.
E. Beginning in fiscal year 1992-93, up to sixty-six percent of the amounts used for the purposes set forth in category B.3 above shall be distributed for district purposes as follows:
1. Twenty percent of such funds shall be equally allocated to each district to meet special needs.
2. Eighty percent of such funds will be distributed as determined by the city council taking into consideration the following: undeveloped neighborhood and community serving park acres per population of one thousand; neighborhood and community serving developed park acres per population of one thousand; neighborhood and community serving developed park acres in good condition per population of one thousand; and square feet of neighborhood and community serving center space per population of one thousand.
F. Beginning in fiscal year 1992-93, up to and including, but not more than, thirty-four percent of the amounts to be used for the purposes set forth in category B.3 above in any fiscal year may be expended in any part of the city for improvements in category B.3 above for natural open space area intended to be left in a natural state or at San José Family Camp located in Tuolumne County, California, without regard to district of origin.
G. In the event that a construction or reconstruction project for the purposes set forth in category B.3 above results in the expenditure of five hundred thousand dollars or more of funds collected under this chapter and allocated for the purposes set forth in category B.3, two percent of such amounts shall be set aside for public art projects.
H. Not more than thirty-six percent of the taxes collected in any fiscal year may be expended for improvements listed in categories B.1, B.2, B.4, B.5, B.6 and B.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 B.2 which are located outside the city.
I. 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.
J. As used herein, "developed park acre" means any degree of improvements made to city land for the purpose of making it accessible and usable by the public for park and recreation purposes. Acreage in this category includes, without limitation, fully developed and minimally developed land.
K. As used herein, "undeveloped park acre" means parkland not improved for recreation purposes, pursuant to an adopted park master plan or phased development plan as applicable.
L. As used herein, "good condition" means, in the opinion of the city manager, functional and safe for use by the public, pursuant to an adopted park master plan or phased development plan, and satisfactorily maintainable with a standard level of maintenance.
M. Beginning July 1, 1992, not more than ten percent of the taxes authorized to be expended in each category B.1 through B.7 may be expended in each such category for operation and maintenance costs of capital facilities acquired or constructed with taxes collected under this chapter and overhead costs; provided, however, that monies collected pursuant to this chapter shall be reduced by ten percent annually beginning July 1, 1992, for operation and maintenance costs of capital facilities and overhead costs until no monies collected herein are used for such purposes.
1. 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.
2. 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.
N. 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 shall be 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.
O. 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.
(Ord. 23756)
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_4.54.100USTAREEPSPFUFetched: 11/1/2026