§ 4.64.090. Use of tax revenue - Residential construction tax contribution fund.

A.

All of the taxes collected under this chapter shall be placed and deposited into a special fund which is hereby created and established for such purpose and which shall be known as the "Residential Construction Tax Contribution Fund." Such taxes so placed and deposited in said fund shall be expended for the following purposes and under the following conditions, to wit:

1.

Contribution to persons who have constructed, pursuant to the requirement of the City of San José ("constructed" shall for the purposes of this section include reinforced or thickened) at their sole cost and expense public streets, highways and expressways, or portions of such streets, highways or expressways within the City of San José, ninety feet or more in width, in connection with existing or proposed residential or mobilehome park development for which proposed development the taxes imposed by this chapter are required to be paid for a portion of the costs of such construction at the rate of one dollar and fifty cents per square foot for construction of new eligible improvements, and for reinforcement or thickening of existing eligible improvements, at the rate of ten cents per square foot per inch of thickness, eligible improvements as used herein being grading, subbase, treated base alternate, and paving constructed on lanes used exclusively for left-turn vehicular movement and on that portion of a street from the centerline to a point thirty feet from the owner's property line. Such contributions shall be made only to the extent that sufficient moneys are present in said fund to effect such contribution.

2.

Such contribution shall be made as such taxes are deposited in said fund and on the basis of a priority list containing the names of the persons who constructed such eligible improvements, the square footage of such eligible improvements, and the amount of contribution to be made to such person established by the director of public works in the order in which the eligible improvements are accepted by city. Such contribution shall be made in such a manner that the person first on the priority list shall receive full contribution for eligible improvements at the rate above provided (subject to the sufficiency of money in the said fund) before any contribution is made to the person who is second on the priority list. If the taxes in the said fund at a given time are insufficient to make contribution in full for eligible improvements at the rate above provided to a person who is first in priority at such time, such taxes as are available shall be paid to him, and as additional taxes are deposited in said fund they shall be paid to such person until he receives contribution in full for the eligible improvements at the rate above provided.

3.

Nothing herein shall be deemed to prevent the city council from authorizing short-term loans of funds in the residential construction tax contribution fund to the sanitary sewer connection fee fund or any other special fund of the city upon such terms and conditions as are approved in advance by the council.

B.

Any person who has constructed eligible improvements pursuant to plans for the improvement of public streets and expressways in connection with the development of a subdivision, as that term is defined in Section 19.08.440 of the San José Municipal Code, which plans have been approved by the City of San José between April 17, 1974, and the effective date of Ordinance No. 17710, who has not received a contribution from city toward the costs of such eligible improvements and who is not required to pay the taxes imposed by this chapter in connection with the development of such subdivision because building permits or permits to construct and install electrical or plumbing equipment to service a mobilehome lot have been issued in connection with the development of such subdivision before the effective date of this article may, by paying the taxes imposed hereunder which would otherwise have applied to him had such building permits or permits to construct and install electrical or plumbing equipment to service a mobilehome lot in such subdivision not been issued before the effective date of this article, not more than sixty days after the effective date of Ordinance No. 17710, be eligible for contribution for the construction costs of eligible improvements in such subdivision at the rate above provided, the order of his priority being based on the date the eligible improvements were accepted by the City of San José. In no event shall any contribution to any person be made unless and to the extent that sufficient moneys are available in the said fund, and then only subject to and in conformance with the above conditions and limitations and in the order above set forth.

C.

Any person who has repaid, after the effective date of Section 14.13.020 of the San José Municipal Code, the city its improvement costs as required by and pursuant to said Section 14.13.020 for the construction by city of improvements in connection with existing or proposed residential or mobilehome park development, and who has paid the taxes imposed hereunder at the time of the development of such residential or mobilehome park shall, for the purposes of this section, be considered to be a person who has constructed pursuant to the requirement of the City of San José, eligible improvements, and eligible for contribution for the construction costs of those eligible improvements constructed by the city in connection with such existing or proposed residential or mobilehome park development at the rate above provided, the order of this priority being based on the date payment to city of city's improvement costs pursuant to said Section 14.13.020 was made. In no event shall any contribution to any person be made unless and to the extent that sufficient moneys are available in the said fund and then only subject to and in conformance with the above conditions and limitations and in the order above set forth.

D.

Nothing herein shall be deemed to imply that the contributions made hereunder by the City of San José are made to discharge a legal debt or obligation on the part of the City of San José, or that the City of San José has a legal debt or obligation to make such contribution. Nothing herein shall prevent the City of San José (in its sole discretion and without any obligation or duty to do so) from contributing money to any person for the construction of eligible improvements from other appropriate sources including, but not limited to, gas tax funds, under such circumstances and subject to such conditions as the City of San José may determine.

(Prior code § 16107; Ords. 19630, 20829.)