TO: HONORABLE MAYOR FROM: Maria Öberg
AND CITY COUNCIL Jill Bourne
SUBJECT: Approval to Increase the Date: May 19, 2025
Library Parcel Tax Rates
for Fiscal Year 2025-2026
Approved Date
5/28/25
RECOMMENDATION
Adopt a resolution increasing the Library Parcel Tax rates for Fiscal Year 2025-2026 by
2.69% over the Fiscal Year 2024-2025 rates and approving the placement of the Library Parcel Tax on the Fiscal Year 2025-2026 Santa Clara County Property Tax Roll.
SUMMARY AND OUTCOME
The proposed increase in Library Parcel Tax rates will continue to provide funding to maintain and enhance Citywide library services and facilities through the acquisition of materials, the development and delivery of educational and digital literacy programs, and the repair, equipping, and staffing of libraries.
BACKGROUND
In August 2004, the City Council adopted Resolution No. 72268 placing a Library Parcel Tax, as provided in the San José Library and Reading Protection Ordinance, on the November 2004 General Municipal Election. The Library Parcel Tax was approved by the required two-thirds vote of the electorate. The Library Parcel Tax took effect on July 1, 2005, with an expiration date of June 30, 2015.
In August 2005, the City Council adopted Resolution No. 72844 approving the placement of the Library Parcel Tax on the Fiscal Year (FY) 2005-2006 Santa Clara County Property Tax Roll. Library Parcel Tax rates for FY 2005-2006 were set at the same rates that had been charged through the Library Benefit Assessment District: $25 per single-family or condominium/townhome parcel, and varying rates for other residential, industrial, and vacant parcels.
COUNCIL AGENDA: 6/10/25
FILE: 25-634
ITEM: 2.13
HONORABLE MAYOR AND CITY COUNCIL
May 19, 2025
Subject: Approval to Increase the Library Parcel Tax Rates for Fiscal Year 2024 -2025
In March 2014, the City Council adopted Resolution No. 76935 placing a 25-year extension of the existing Library Parcel Tax on the June 2014 Special Municipal Election ballot. The Library Parcel Tax was approved by the required two-thirds vote of the electorate. The passage of the measure extends the Library Parcel Tax for the period beginning July 1, 2015 through June 30, 2040.
Per the San José Library and Reading Protection Ordinance (Chapter 4.79 of the San José Municipal Code), commencing with FY 2006-2007 and by resolution of the City Council, the City Council may increase the Library Parcel Tax rates, if the City Council finds that the cost of living in the City of San José as shown on the Consumer Price Index (CPI) has increased over the preceding base period, but in no event shall the increase exceed 3.00%. The base period for calculating the CPI adjustment is the February-to-February reporting period. The specific CPI required to be used for the calculation is the All-Urban Consumers for the San Francisco-Oakland-San José area with all items included as published by the U.S. Department of Labor, Bureau of Labor Statistics (BLS). BLS discontinued the San Francisco-Oakland-San José index in 2018.
Starting in fiscal year 2019-2020, the Finance Department has used the BLS San Francisco-Oakland-Hayward CPI index to calculate the Library Parcel Tax cost of living adjustment as the geographical area covered by this index is comparable to San José.
The table below shows the last 10 years of annually approved percentage increases for the Library Parcel Tax per Chapter 4.79 of the Municipal Code.
Annual Increases in Library
Parcel Tax Rates
Fiscal Year
Percentage
Increase
2016-2017 3.00%
2017-2018 3.00%
2018-2019 3.00%
2019-2020 3.00%
2020-2021 2.91%
2021-2022 1.57%
2022-2023 3.00%
2023-2024 3.00%
2024-2025 2.37%
2025-2026 2.69%
HONORABLE MAYOR AND CITY COUNCIL
May 19, 2025
Subject: Approval to Increase the Library Parcel Tax Rates for Fiscal Year 2024 -2025
ANALYSIS
Following the methodology for the CPI adjustment to the Library Parcel Tax rate, staff recommends an increase of 2.69% for fiscal year 2025-2026. Specifically, as outlined in the table below, the CPI for All Urban Consumers for the San Francisco-Oakland- Hayward area, as published by the U.S. Department of Labor BLS, increased by 2.69% during the period from February 2024 to February 2025.
CPI February 2025 354.432
Less: CPI February 2024 345.151
Index Point change 9.281
Divided by previous period
CPI 345.151
Percent change 2.69%
Proposed 2024-2025 Library
Parcel Tax rate increase
2.69%
The proposed 2.69% increase in the Library Parcel Tax rate will increase the Library Parcel Tax for a single-family or condominium/townhome parcel from $40.03 for FY 2024-2025 to $41.11 for FY 2025-2026, reflecting an increase of $1.08 per parcel. The complete Library Parcel Tax schedule is attached to this memorandum (see Attachment – Library Parcel Tax Rates – FY 2024-2025 Actual and FY 2025-2026 Proposed Library Tax Rates). The attachment shows the current tax schedule and the proposed tax schedule to be placed on the Santa Clara County Property Tax Roll for FY 2025-2026 for all types of parcels. Assuming the same land use classifications and number of parcels as in FY 2024-2025, the approximate tax collection for all land use classifications in FY 2025-2026 will be $11.2 million, reflecting an increase of approximately $250,000 over the FY 2024-2025 collections of approximately $11.0 million.
The collection of the Library Parcel Tax for FY 2025-2026 represents the eleventh year of the extended twenty-five-year term of the Library Parcel Tax scheduled to end on June 30, 2040. Currently, the Library Parcel Tax provides approximately 18% of the San José Public Library System’s 2024-2025 Operating Budget and 2% of the 2024-2025 Capital Budget.
HONORABLE MAYOR AND CITY COUNCIL
May 19, 2025
Subject: Approval to Increase the Library Parcel Tax Rates for Fiscal Year 2024 -2025
EVALUATION AND FOLLOW-UP
The Library Parcel Tax is adjusted each year based on the CPI. No follow-up is required.
BUDGET REFERENCE
The FY 2025-2026 Proposed Operating Budget includes the estimated increase of
2.69% in revenue for Library Parcel Tax. Additional details can be found in the Library Parcel Tax Source and Use of Funds on page 905 of the 2025-2026 Proposed Operating Budget.
COORDINATION
This item has been coordinated with the City Attorney’s Office and the City Manager’s Budget Office.
PUBLIC OUTREACH
This memorandum will be posted on the City’s Council Agenda website for the June 10, 2025 City Council meeting.
COMMISSION RECOMMENDATION AND INPUT
No commission recommendation or input is associated with this action.
CEQA
Statutorily Exempt, Public Project File No. PP17-005 CEQA Guidelines Section 15273, adjustment to fees, rates and fares without changes to or expansion of services.
HONORABLE MAYOR AND CITY COUNCIL
May 19, 2025
Subject: Approval to Increase the Library Parcel Tax Rates for Fiscal Year 2024 -2025
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/ /s/
Maria Öberg Jill Bourne
Director of Finance City Librarian
For finance-related questions, please contact Maria Öberg, Director of Finance, at [email protected]. For library-related questions, please contact Jill Bourne, City Librarian at [email protected].
ATTACHMENT
Library Parcel Tax Rates – FY 2024-2025 Actual and FY 2025-2026 Proposed Library Tax Rates
ATTACHMENT
LIBRARY PARCEL TAX RATES
(FY 2024-2025 Actual and FY 2025-2026 Proposed Library Tax Rates)
Land Use
Classification
FY 2024-2025
Parcel Tax Rate
Proposed FY 2025-
2026
Parcel Tax Rate
(2.69% Increase)
Single Family Parcels $40.03/Parcel $41.11/Parcel
Condominium/Townhome
Parcels
$40.03/Parcel $41.11/Parcel
Other Residential Parcels
(Fraternity, Sorority, Boarding,
Rooming House, Farm Labor
Camp)
Up to 20 Units $14.97/Unit $15.37/Unit
21 to 50 Units
$295.28 + $9.99/Unit
Greater than 20 Units
$303.22 + $10.26/Unit
Greater than 20 Units
51 to 100 Units
$600.31 + $4.99/Unit
Greater than 50 Units
$616.45 + $5.12/Unit
Greater than 50 Units
Over 100 Units
$850.13 + $2.00/Unit
Greater than 100 Units
$875.99 + $2.05/Unit
Greater than 100 Units
Multi-Family Residential
Parcels
Up to 20 Units $20.13/Unit $20.67/Unit
21 to 50 Units
$402.22 + $13.36/Unit
Greater than 20 Units
$413.03 + $13.71/Unit
Greater than 20 Units
51 to 100 Units
$804.33 + $6.68/Unit
Greater than 50 Units
$825.96 + $6.85/Unit
Greater than 50 Units
Over 100 Units
$1,139.01 + $2.66/Unit
Greater than 100 Units
$1,169.64 + $2.73/Unit
Greater than 100 Units
ATTACHMENT
LIBRARY PARCEL TAX RATES
(FY 2024-2025 Actual and FY 2025-2026 Proposed Library Tax Rates)
Land Use
Classification
FY 2024-2025
Parcel Tax Rate
Proposed FY 2025-
2026
Parcel Tax Rate
(2.69% Increase)
Commercial Parcels
Less than or equal to 0.5 acre $120.08/Acre $123.31/Acre Greater than 0.5 acre to 1.0 acre
$60.01 + $80.08/Acre
Greater than 0.50 Acre
$61.62 + $82.23/Acre
Greater than 0.50 Acre
Greater than 1.0 acre to 5.0
acres
$100.05 + $60.01/Acre
Greater than 1.00 Acre
$102.74 + $61.62/Acre
Greater than 1.00 Acre
Greater than 5.0 acres to 10
acres
$340.23 + $40.03/Acre
Greater than 5.00 Acres
$349.38 + $41.10/Acre
Greater than 5.00 Acres
Greater than 10 acres
$540.42 + $9.99/Acre
Greater than 10 Acres
$554.96 + $10.25/Acre
Greater than 10 Acres
Minimum Special Tax per Parcel
$19.98/Acre
$20.51/Acre
Professional Parcels
Less than or equal to 0.5 acre $180.13/Acre $184.97/Acre Greater than 0.5 acre to 1.0 acre
$90.07 + $120.08/Acre
Greater than 0.50 Acre
$92.49 + $123.31/Acre
Greater than 0.50 Acre
Greater than 1.0 acre to 5.0 acres
$150.10 + $90.07/Acre
Greater than 1.00 Acre
$154.13 + $92.49/Acre
Greater than 1.00 Acre
Greater than 5.0 acres to 10
acres
$510.38 + $60.01/Acre
Greater than 5.00 Acres
$524.10 + $61.62/Acre
Greater than 5.00 Acres
Greater than 10 acres
$810.64 + $14.97/Acre
Greater than 10 Acres
$832.44 + $15.37/Acre
Greater than 10 Acres
Minimum Special Tax per Parcel
$30.05/Acre
$30.85/Acre
ATTACHMENT
LIBRARY PARCEL TAX RATES
(FY 2024-2025 Actual and FY 2025-2026 Proposed Library Tax Rates)
Land Use
Classification
FY 2024-2025
Parcel Tax Rate
Proposed FY 2025-
2026
Parcel Tax Rate
(2.69% Increase)
Industrial Parcels
Less than or equal to 0.5 acre $60.01/Acre $61.62/Acre Greater than 0.5 acre to 1.0 acre
$30.05 + $40.03/Acre
Greater than 0.50 Acre
$30.85 + $41.10/Acre
Greater than 0.50 Acre
Greater than 1.0 acre to 5.0 acres
$50.03 + $30.05/Acre
Greater than 1.00 Acre
$51.37 + $30.85/Acre
Greater than 1.00 Acre
Greater than 5.0 acres to 10
acres
$170.15 + $19.98/Acre
Greater than 5.00 Acres
$174.72 + $20.51/Acre
Greater than 5.00 Acres
Greater than 10 acres
$270.18 + $4.99/Acre
Greater than 10 Acres
$277.44 + $5.12/Acre
Greater than 10 Acres
Minimum Special Tax per Parcel
$9.99/Acre
$10.25/Acre
Vacant Parcels
Less than or equal to 0.5 acre $14.96/Acre $15.36/Acre Greater than 0.5 acre to 1.0 acre
$7.48 + $9.99/Acre
Greater than 0.50 Acre
$7.68 + $10.25/Acre
Greater than 0.50 Acre
Greater than 1.0 acre to 5.0 acres
$12.47 + $7.48/Acre
Greater than 1.00 Acre
$12.80 + $7.68/Acre
Greater than 1.00 Acre
Greater than 5.0 acres to 10
acres
$42.46 + $4.99/Acre
Greater than 5.00 Acres
$43.60 + $5.12/Acre
Greater than 5.00 Acres
Greater than 10 acres
$67.42 + $1.22/Acre
Greater than 10 Acres
$69.23 + $1.25/Acre
Greater than 10 Acres
Minimum Special Tax per Parcel
$9.99/Acre
$10.25/Acre