On March 19, 2024, San Jose City Council directed staff to explore additional funding mechanisms for operations and maintenance of City parks and to explore placing a measure on the November ballot to allow the City to enter long-term retail and commercial leases on City park land.

A group of potential ballot measures were created as a result of the Council’s direction: two parcel tax measures, a bond measure and a City Charter amendment to allow the leasing of public parks to private entities.

The parcel taxes garnered the most public support, with 63.1% & 66.1% of respondents in favor of placing a parcel tax measure on the November ballot. These measures proposed taxing residential properties at $0.01/sq ft and non-residential properties at $0.03/sq ft. Support increased to 67.4% & 72.8% when respondents were asked if they would support the parcel tax if the rate for residential properties was decreased to $0.005/sq ft.

Based on the results, staff deemed that a parcel tax measure was the most viable option and recommended that City Council direct staff to move forward with drafting ballot language for a parcel tax as well as decreasing the proposed rate at which residential properties would be taxed in order to garner more public support. Since these parcel taxes would be designated for special use, specifically park maintenance and improvements, they would require a two-thirds majority vote in order to pass.

On June 18, 2024 City Council voted unanimously to proceed with drafting refined ballot language for a parcel tax measure to be placed on the November ballot. Staff will present a revised draft of the parcel tax ballot language at a special Council meeting scheduled for August 6, 2024. Additionally, Councilmember Domingo Candelas made a friendly amendment to the motion, directing staff to conduct outreach to relevant stakeholders regarding the potential Parcel Tax measure before the special meeting on August 6, 2024.

Memorandum
Staff Presentation