SAN JOSE, Ca., Sept. 23, 2026
At the beginning of the fiscal year, the City of San Jose allocated $1.2 million from the Parking Enterprise Fund to help close a General Fund deficit. To fill the new deficit in the Parking Fund, the City proposed raising Downtown meter rates and enforcement hours. That plan was halted in June because small businesses mobilized to let their voices be heard.
The City’s Department of Transportation conducted additional outreach over the last few months and listened to the feedback of business owners, employees, and residents. That resulted in a new five-year phased implementation plan to gradually raise garage and meter rates and extend enforcement hours. Full details of the proposal can be found here.
SJDA supports the City’s plan to raise the wage threshold for discounted employee parking permits and to amend garage and event parking rates this year to fair market rates to help address the Parking Fund gap. But we believe good parking policy should serve Downtown’s long-term health, not just balance the City’s budget. The remainder of the proposal seeks to generate additional dollars from Downtown visitors and employees to direct to the general fund operations.
That’s why SJDA is calling on the City to defer future parking system changes after year one and:
Find a sustainable funding solution. Beyond this fiscal year, parking revenue should stay in the Parking Enterprise Fund. These dollars should stay dedicated to the system it comes from rather than continuing to prop up the General Fund indefinitely.
Protect access for visitors and employees. Keep 90 minutes of free garage parking in place and maintain on-street meter enforcement ending at 6 p.m., Monday through Saturday, rather than extending enforcement into the evening.
Invest before increasing. Before any further rate increases are adopted, the City should work with the Downtown Parking Board and SJDA on a real investment plan for our garages and parking system. The substantial feedback received over the last two months raised concerns about the poor user experiences in our Downtown garages from cleanliness, security, lighting, wayfinding, and malfunctioning elevators. Downtown visitors and employees deserve a parking system that works, not just one that costs more. If we are going to attract new users and visitors to Downtown, we must ensure they have a good experience and return.
Be transparent with the public. The City should regularly report on how the parking system is performing, including usage, revenue, expenses, and fund balance, so residents and businesses can see exactly how their parking dollars are being spent.
Fill the Board. The City must make off-cycle appointments to the Downtown Parking Board to ensure quorum is achieved and meetings are held. Having a representative voice for parking decisions is critical to engagement, outreach, and making informed decisions.
A thriving Downtown depends on parking that is affordable, well-maintained, and reliable. There’s work to do to ensure that vision becomes a reality and SJDA looks forward to working with the City to get this right for the future of our Downtown and small businesses.
Call to Action:
Join the campaign and ensure your voice is heard by City Council before and on September 29th
- Email City Council:
Email Template for Stakeholders, including San Jose Residents & Employees
Email Template for Businesses - Show up and speak at Council: Attend in-person or join online
Tuesday, Sept. 29, 2026 @ 1:30 PM
City Hall: Council Chambers
Join Virtually: https://sanjoseca.zoom.us/j/98221474336
