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Memorandum

San Jose City Council
August 8, 2023

Document
Memorandum
Meeting
August 8, 2023
Body
San Jose City Council
Pages
3
Original file
171 KB
Text extracted from the city's file for reading and search. Open the original on legistar.granicus.com. That file is the official record.

COUNCIL AGENDA: 8/8/23
FILE NO: 23-995
ITEM: 3.4
TO: HONORABLE MAYOR FROM: Rick Bruneau

AND CITY COUNCIL

SUBJECT: SEE BELOW DATE: July 17, 2023

Approved Date
7/24/23

SUBJECT: PUBLIC HEARING FOR THE FISCAL YEAR 2023-2024 SANITARY SEWER

SERVICE AND USE CHARGE AND STORM SEWER SERVICE CHARGE
ASSESSMENTS TO BE PLACED ON THE 2023-2024 SANTA CLARA COUNTY

SECURED PROPERTY TAX ROLL

RECOMMENDATION

(a) Conduct a public hearing on the Fiscal Year 2023-2024 annual report prepared by the Director of Finance detailing the Sanitary Sewer Service and Use Charges and Storm Sewer Service Charges filed with the City Clerk’s Office.
(b) Adopt a resolution confirming the approval of the report and the placement of the charges as set forth therein on the 2023-2024 Santa Clara County Secured Property Tax Roll, with such modifications the City Council may make based on public hearing testimony.

SUMMARY AND OUTCOME

Conducting the public hearing and adopting the recommended resolution will allow the City of San José (City) to place Sanitary Sewer Service and Use Charges (SSSUC) and Storm Sewer Service Charges (SSSC) on the 2023-2024 Santa Clara County (County) Secured Property Tax Roll for the assessment and collection of approximately $212 million in revenue to fund services related to the City’s sanitary and storm systems.

BACKGROUND

On June 6, 2023, the City Council adopted Resolution 2023-196 1 and Resolution 2023-1972 to establish
the Fiscal Year 2023-2024 SSSUC and SSSC, respectively, and set rates for Fiscal Year 2023-2024.

The City has collected payment for the majority of the SSSUC and SSSC by placing such charges on the County Secured Property Tax Roll since 1960 and 1991, respectively. These charges will appear as a single line item entitled “SEWER SANI/STORM” on each County Secured Property Tax bill and is

1 https://records.sanjoseca.gov/Resolutions/RES2023-196.pdf 2 https://records.sanjoseca.gov/Resolutions/RES2023-197.pdf

HONORABLE MAYOR AND CITY COUNCIL
July 17, 2023
Subject: Public Hearing for Fiscal Year 2023-2024 Sanitary Sewer Service and Use Charge and Storm Sewer Service Charge Assessments

Page 2 ends

collected by the County Tax Collector. Pursuant to an agreement between the City and the County, the County will remit 100 percent of the charges placed on the County Secured Property Tax Roll back to the City in two payments, typically in January and June, less a 0.3 percent administration fee which is deducted from the first payment remitted to the City.

As outlined in Sections 15.12.550 and 15.16.1410 of the San José Municipal Code, on or before July 5 of each year, the Director of Finance is directed to prepare and file with the City Clerk a written report containing a list of all parcels that receive sanitary sewer service and storm sewer service, and the SSSUC and SSSC for each parcel for the forthcoming fiscal year. However, on June 6, 2023, the City Council adopted Resolution 2023-168 to extend the filing date of the required report prepared by the Director of Finance, from July 5, 2023 to July 15, 2023, in order to allow City staff the time necessary to provide the most current, accurate, and complete listing of the Fiscal Year 2023-2024 SSSUC and SSSC, respectively, to the City Clerk.

ANALYSIS

The Finance Director’s written report for Fiscal Year 2023-2024 was submitted to the City Clerk’s office on July 13, 2023. This report includes charges totaling approximately $212 million and covers approximately 238,000 parcels. On June 6, 2023, the City Council adopted Resolution 2023-168 3 to set
the Public Hearing for Tuesday, August 8, 2023, at 1:30 p.m., or as soon thereafter as the matter may be heard, in the City Hall Council Chambers. The City Clerk will publish public notices in accordance with Sections 15.12.550 and 15.16.1430 of the San José Municipal Code.

The Director of Finance recommends the City Council conduct a public hearing and adopt a resolution to approve placement of the SSSUC and SSSC on the 2023-2024 County Secured Property Tax Roll.

EVALUATION AND FOLLOW-UP

Upon acceptance of this recommendation, staff will place the Fiscal Year 2023-2024 SSSUC and SSSC, as detailed above, on the 2023-2024 County Secured Property Tax Roll, with such modifications, if any, the City Council may make based on public hearing testimony scheduled to be heard on August 8, 2023.

COST SUMMARY/IMPLICATIONS

This action will result in the placement of Fiscal Year 2023-2024 SSSUC and SSSC assessments of approximately $179 million and $33 million, respectively, on the 2023-2024 County Secured Property Tax Roll. Revenues received from these charges have been allocated by the City Council to various allowable City functions as part of the 2023-2024 Adopted Budget.

3 https://records.sanjoseca.gov/Resolutions/RES2023-168.pdf

HONORABLE MAYOR AND CITY COUNCIL
July 17, 2023
Subject: Public Hearing for Fiscal Year 2023-2024 Sanitary Sewer Service and Use Charge and Storm Sewer Service Charge Assessments

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COORDINATION

This memorandum has been coordinated with the City Attorney’s Office, City Clerk’s Office, City Manager’s Budget Office, and the Environmental Services Department.

PUBLIC OUTREACH

Per the adoption of Resolution 2023-168, the City Clerk’s Office will publish the notice of the time and place of the public hearing as required by Sections 15.12.550 and 15.16.1430 of the San José Municipal Code. In addition, this memorandum will be posted on the City’s Council Agenda website for the August 8, 2023 City Council meeting.

COMMISSION COORDINATION AND INPUT

No commission recommendation or input is associated with this action.

CEQA

Not a project, File No. PP17-010, City Organizational and Administrative Activities resulting in no changes to the physical environment.

PUBLIC SUBSIDY REPORTING

This item does not include a public subsidy as defined in section 53083 or 53083.1 of the California Government Code or the City’s Open Government Resolution.

/s/

RICK BRUNEAU
Director of Finance

For questions, please contact John Kachmanian, Deputy Director of Finance – Revenue Management, via email at [email protected] or via phone at (408) 535-7034.

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