San José leaders are set to consider a proposal on Tuesday that would increase parking meter and garage rates while also extending the hours of meter enforcement across the city. The plan is being put forward by city transportation officials as a way to help manage ongoing city budget deficits and account for the rising cost of maintaining parking infrastructure. However, the proposal has prompted opposition from some downtown business owners, residents, and members of the city's parking board.
The proposed changes involve a phased rollout. Downtown parking meter rates would increase from the current $2 per hour to $3 per hour next year, and then to $4 per hour beginning in 2030. Meters outside of the downtown core would see an increase from $2 per hour to $3 per hour in 2030. City parking garages would experience a $3 increase to their event rates and a $1 increase to their hourly rates later this year, with an additional $2 bump to event rates slated for 2029. Depending on the garage, event rates could ultimately range from $15 to $35.
According to Colin Heyne, a spokesperson for San José’s Department of Transportation, downtown parking meter rates have not been raised since 2014. Heyne stated that the city has avoided increasing rates for many years despite rising costs, but felt it was necessary given the budget deficit. The city has directed $1.2 million from parking funds to support its general fund, which faced a $50 million shortfall in the current budget, and anticipates similar diversions in future years.
One of the most debated aspects of the proposal is the extension of parking meter enforcement hours. Currently, meters are active Monday through Saturday, from 9 a.m. to 6 p.m. The new plan would extend enforcement until 9 p.m., a change critics worry could negatively affect downtown businesses and their employees. Heyne noted that the city also aims to increase prices to encourage more turnover in curbside spots, which are considered “premier customer parking,” and to encourage those parking for longer durations to use city garages, where hourly rates would remain lower than meter rates.
An earlier attempt in June by city officials to double downtown parking meter rates more quickly was met with resistance. That proposal, initially placed on the City Council's consent calendar, was put on hold after residents, business owners, and the San José Downtown Association expressed concerns about a lack of consultation, leading to the current phased proposal.
Brian Kurtz, CEO of the San José Downtown Association, voiced concerns that increasing parking rates and creating additional barriers could harm downtown’s recovery since the pandemic. He believes it could give people another reason to question visiting downtown and supporting local businesses and restaurants.
Tamiko Rast, vice chair of the city’s Downtown Parking Board and CEO of the Japantown Business Association, has opposed extending meter hours. She suggests that while some pain from rate increases is inevitable, it should be inflicted in a way that avoids potentially bankrupting downtown businesses. Rast supports higher increases for city garage event rates instead. She also noted concerns about the current quality of city garages, citing issues with cleanliness and safety that might deter people from using them even at lower prices.
Heyne stated that increased rates would help fund ongoing maintenance needs and improvements, including garage painting, floor resurfacing, lighting, and a new elevator at the Second and San Carlos garage. The city also plans to replace older parking meters, add new security features, and expand existing security patrols. Kurtz, however, questioned the city’s decision to divert over $1 million from the parking fund to the general fund when many improvements are needed within parking infrastructure. He argued that increased parking rates should directly benefit the parking assets themselves.
One part of the proposal that has garnered support from the Downtown Association is an expansion of a program for lower-wage downtown employees. This program currently offers a half-price discount on monthly parking permits at city garages for employees in meter districts who earn no more than 30% above the minimum wage. The proposal would expand eligibility to include individuals earning up to 50% above the minimum wage, and would exclude tips from the income threshold. Heyne expressed hope that more people would become aware of and utilize this program.
