Chapter 4.55

USE OF CONSTRUCTION TAX AND REAL PROPERTY CONVEYANCE TAX REVENUES

Parts:

• 1 Purpose and Deposit of Proceeds 2 Definitions

• 3 Eligible Expenditures of C&C Revenues 4 Allocation of C&C Revenues

Part 1

PURPOSE AND DEPOSIT OF PROCEEDS

Sections:

• 4.55.010 Purpose.

Notwithstanding the provisions of Sections 4.54.090, 4.54.100, 4.58.230 and 4.58.235, the provisions of this chapter shall govern the expenditure of the taxes collected pursuant to Chapter 4.54, the San José Construction Tax Ordinance and pursuant to Chapter 4.58, the San José Real Property Conveyance Tax Ordinance.

(Ord. 27689.)

• A. All taxes collected under Chapters 4.54 and 4.58 of this Code shall be placed in the "construction tax and property conveyance tax fund" established by Section 4.80.300.

• B. The director of finance shall establish and keep such accounts as may be necessary to account for said taxes.

• (Ord. 27689.)

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§ 4.55.200

Part 2

DEFINITIONS

Sections:

• 4.55.200 Definitions.

• 4.55.205 C&C revenues. 4.55.210 Capital support costs. 4.55.215 Central fund. 4.55.220 Developed park acre. 4.55.225 District. 4.55.230 District of origin. 4.55.235 Fixed costs. 4.55.240 General allocation 4.55.245 General improvements. 4.55.250 Good condition. 4.55.255 Non-construction costs. 4.55.260 Operating maintenance costs. 4.55.265 Park improvements. 4.55.270 Parks allocation. 4.55.275 Parks maintenance costs. 4.55.280 Undeveloped park acre.

The definitions set forth in this part shall govern the application and interpretation of this chapter.

(Ord. 27689.)

a capital improvement, including without limitation, the costs of personnel, supplies, equipment, facilities and information technology. (Ord. 27689.)

The "central fund" means an account within the construction tax and property conveyance tax fund in which the parks allocation is deposited and from which certain fixed costs are paid and the parks allocation is distributed. (Ord. 27689.)

"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. (Ord. 27689.)

"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.

(Ord. 27689.)

"C&C revenues" means the proceeds of the taxes collected pursuant to Chapter 4.54, the San José Construction Tax Ordinance, and pursuant to Chapter 4.58, the San José Real Property Conveyance Tax Ordinance.

(Ord. 27689.)

"District of origin" means the district in which C&C Revenues are collected in any fiscal year on account of construction in the district pursuant to Chapter 4.54 or on account of transfers of real property situate in the district pursuant to Chapter 4.58.

(Ord. 27689.)

"Capital support costs" means the costs of the resources used in the acquisition or development of

"Fixed costs" means the following costs of park improvements: capital equipment for mainte-

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§ 4.55.300

nance; recreational hardware; trees and shrubs; preventive capital maintenance costs; and non-construction costs. (Ord. 27689.)

"General allocation" has the meaning set forth in Section 4.55.410.

(Ord. 27689.)

"General improvements" means the improvements listed in Section 4.55.300.B.1, B.2, B.4, B.5, B.6 and B.7.

(Ord. 27689.)

"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. (Ord. 27689.)

"Non-construction costs" means the preliminary costs and capital support costs associated with the acquisition, construction, reconstruction, replacement, remodeling, modification, alteration, enlargement, renovation, furnishing and refurnishing of the improvements listed in Section 4.55.300 B, including preventive capital maintenance and energy efficient capital improvements to the improvements listed in Section 4.55.300 B.

(Ord. 27689.)

"Operating maintenance costs" has the meaning set forth in Section 4.55.440. (Ord. 27689.)

"Park improvements" means the improvements listed in Section 4.55.300.B.3.

(Ord. 27689.)

"Parks allocation" has the meaning set forth in Section 4.55.410.

(Ord. 27689.)

"Parks maintenance costs" means the costs of routine maintenance of the park improvements including the costs of cleaning and repairing of parks improvements. Parks maintenance costs also include the costs of volunteer programs related to the maintenance of park improvements and contractual services for the routine maintenance of the park improvements. (Ord. 27689.)

"Undeveloped park acre" means parkland not improved for recreation purposes, pursuant to an adopted park master plan or phased development plan as applicable.

(Ord. 27689.)

Part 3

ELIGIBLE EXPENDITURES OF C&C REVENUES

Sections:

• A. C&C revenues shall be expended for the costs of acquisition, construction, reconstruction, replacement, remodeling, modification, alteration, enlargement, renovation, furnishing and refurnishing of the improvements listed in Subsection B., below, including non-construction costs, preventive capital maintenance and energy efficient capital improvements.

• B. The improvements eligible for the expenditure of C&C revenues are:

  1. City public library facilities, equipment and materials, including land and inter-

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§ 4.55.300

• ests 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. Expenditures may be made for improvements listed in this Subsection B.2 which are located outside of the city except that expenditures for public streets and sidewalks may be made only for public streets and sidewalks situated in 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 Subsection 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.

4. 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. Subject to the limitations set forth in this chapter, C&C revenues may be expended on parks maintenance costs and operating maintenance costs.

• (Ord. 27689.)

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. 27689.)

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§ 4.55.420

The provisions of Chapter 22.08 of Title 22 of this Code, entitled "Art in Public Places," shall apply to the construction or reconstruction of park improvements.

(Ord. 27689.)

Part 4

ALLOCATION OF C&C REVENUES

Sections:

• 4.55.400 Allocation of C&C revenues - General.

• 4.55.410 Allocation of C&C revenues for parks improvements and general improvements.

• 4.55.420 Distribution of parks allocation.

• 4.55.430 Distribution of general allocation.

• 4.55.440 Operating maintenance costs - General improvements.

C&C revenues shall be allocated among the purposes specified in Section 4.55.300 B. as set forth in this part without regard to district of origin.

(Ord. 27689.)

• A. At least sixty-four percent (64%) of C&C revenues collected in any fiscal year, shall be allocated for parks improvements. The C&C revenues allocated for park improvements shall be referred to as the parks allocation.

• B. Not more than thirty-six percent (36%) of the C&C revenues collected in any fiscal year may be allocated for general improvements. The C&C revenues allocated for general improvements shall be referred to as the general allocation.

(Ord. 27689.)

• A. Each fiscal year, the parks allocation shall be deposited in the central fund and then shall be distributed according to the methodology set forth in this section.

• B. The city council may appropriate up to fifteen percent (15%) of the parks allocation in the central fund to the general fund for parks maintenance costs or to a reserve account within the general fund established for parks maintenance costs.

• C. Following the appropriation, if any, described in Subsection B, above, the city council may appropriate funds for fixed costs within the central fund or to the general fund. The amount appropriated for such fixed costs shall be subject to the annual determination of the city council.

• D. The city council may appropriate up to and including, but not more than, thirty-four percent (34%) of the parks allocation remaining after the appropriations, if any, described in Subsections B. and C., above, for park improvements located in any part of the city, for natural open space area intended to be left in a natural state, or for San José Family Camp located in Tuolumne County, California.

• E. The city council shall appropriate the parks allocation remaining after the appropriations, if any, described in Subsections B. and C., above, and the appropriation described in Subsection D. above, as follows:

  1. Twenty percent (20%) of such funds shall be equally appropriated to each district to meet the district's special needs.

  2. Eighty percent (80%) of such funds is to be appropriated to the districts, with the amount appropriated to each district as determined by the city council taking into consideration the following: neighborhood and community serving undeveloped park acres per population of one thousand; neighborhood and community serving developed park acres per population of one thousand; neighborhood

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§ 4.55.420

• 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. Commencing on July 1, 1996, the city council may appropriate up to five percent (5%) of the amount appropriated to each district pursuant to Subsection E., above, for the purpose of parks maintenance costs for the park improvements located in the particular district.

• (Ord. 27689.)

• A. Each fiscal year, the general allocation is to be appropriated for each category of general improvements as determined by the city council.

• B. Of the amount of the general allocation allocated for the improvements listed in Section 4.55.300.B.4., the city council may appropriate up to fifteen percent (15%) of such allocation to the general fund for parks maintenance costs.

• (Ord. 27689.)

• A. Subject to the limitations set forth in this section, for each category of general improvements, not more than ten percent (10%) of the amount appropriated for such category of general improvements shall be expended for purposes of operating maintenance costs of the improvements included in such category. Expenditures of C&C revenues for operating maintenance costs of a particular general improvement are limited to a period of not more than five (5) years.

• B. For purposes of this section, 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. Only those general im-

provements which were acquired or constructed with C&C revenues are eligible for the expenditure of C&C revenues for operating maintenance costs.

• (Ord. 27689.)