Berkeley Voters Weigh Public Bank Parcel Tax

Measure Z would fund a proposed city-owned public bank through a six-year parcel tax on property improvements.

Updated on Nov. 1, 2026 in City Hall

Berkeley Voters Weigh Public Bank Parcel Tax

Live Poll

Would you support a new parcel tax to fund a Berkeley public bank?

Berkeley voters will decide Measure Z, which would start a public bank funded by a new six-year parcel tax of $0.06 per square foot on residential improvements and $0.09 per square foot on other properties' improvements. The tax includes potential annual increases, and all collected funds would be subject to City Council review, allocation, and approval.

Why it matters

The measure states that big corporate banks invest public tax dollars outside the community, and proponents propose a local alternative. Its outcome would determine whether Berkeley residents and property owners fund a city-backed lender focused on community priorities.

Measure Z sets a six-year parcel tax of $0.06 per square foot on residential improvements and $0.09 per square foot on other properties' improvements, with potential annual increases. The extraction does not specify projected total revenue or how the tax would compare to existing city revenue sources.

The players

Berkeley City Council

The Berkeley City Council is the elected legislative body of the city of Berkeley, California, which would review, allocate, and approve all funds collected under the proposed parcel tax.

Department of Financial Protection and Innovation

The Department of Financial Protection and Innovation is the California state agency that licenses and regulates financial institutions and would issue the certificate a public bank must obtain.

Federal Deposit Insurance Corporation

The Federal Deposit Insurance Corporation is the independent federal agency that insures deposits at U.S. banks, and its insurance is required for the proposed public bank.

The details

A board including elected officials, financial professionals, and community members would set policy and lending priorities, while professional bankers would run daily operations. The bank must obtain a certificate from the Department of Financial Protection and Innovation and Federal Deposit Insurance Corporation insurance, and the city manager would submit annual progress reports to the City Council while the city auditor audits progress at least once every three years.

- June 30, 2033: Deadline for the public bank to receive required authorization, after which collected funds may be used for green energy and affordable housing loans.

Legal Context

Berkeley's proposal follows the model of the Bank of North Dakota, a state-owned public bank founded in 1919, but applies it at the city level. The stub does not confirm whether any other California city has completed a comparable authorization.

If Measure Z passes, Berkeley property owners would pay the new parcel tax on their improvements for six years, with potential annual increases. The bank's lending priorities for green energy and affordable housing would depend on the board's policy decisions.

The takeaway

Berkeley voters will decide whether to fund a public bank through a parcel tax that could take effect in the years ahead, and the June 30, 2033 authorization deadline sets a long-term timeline for its success.