A San Jose parking official is urging the City Council to delay action on a proposed plan to raise parking rates across the city, citing significant concerns over how revenue from parking fees is currently managed. Tamiko Rast, Vice Chair of the Downtown Parking Board, outlined criticisms against the Department of Transportation's oversight of the estimated $15 million generated annually from meters and garages. This call for a pause comes ahead of a revised proposal scheduled for a City Council vote on Tuesday, September 29.
In an open letter to councilmembers and city administrators, Rast argued that the city has consistently underinvested in parking infrastructure, leading to declining conditions in many city-run facilities. She contends that improving the management of the city's Parking Fund, the primary funding source for this infrastructure, should be prioritized over solely implementing rate increases. Rast also raised transparency issues, stating that city transportation officials have been slow to update the parking board, which she believes undermines the board's advisory role to the City Council on parking matters. The board has not yet formally reviewed the rate plan due to a quorum shortfall at its September 2 meeting.
Rast's letter asked the City Council to require the Department of Transportation to provide complete financial and operational information, allow the Downtown Parking Board a formal review, establish a clear reinvestment plan for facilities, and address existing transparency and oversight failures before approving any new rates or enforcement measures.
The proposed parking rate increases are part of a broader city effort to address an anticipated $26 million budget deficit this year. This revised plan, developed over the past three months, aims to mitigate financial impact by phasing in increases over five years, a change from an earlier proposal that met resistance from the downtown business community. Under the current plan, the hourly rate for downtown parking meters would gradually increase from $2 to $3 in 2027, then to $4 by 2030. The proposal also includes rate hikes at city-run parking garages and an extension of downtown meter operating hours by three hours, moving the shut-off time from 6 p.m. to 9 p.m.
Once fully implemented in 2030, these rate increases are projected to generate an additional $4 million annually for the Parking Fund. However, the plan also involves diverting $1.2 million each year from this fund to help shore up the city's general budget. This proposed diversion has reignited long-standing complaints that parking fee revenue is too often redirected from transportation programs, leaving inadequate funds for facility maintenance.
Downtown business leaders have reported widespread complaints about the condition of city-run garages, including concerns regarding cleanliness, security, insufficient lighting, poor signage, and malfunctioning elevators. They warn that these issues hinder efforts to attract visitors back to downtown areas. Brian Kurtz, CEO of the San Jose Downtown Association, suggested that postponing the vote would allow for the development of an investment plan to improve facility conditions. He stated that increasing rates and adding barriers without addressing user experience needs would be "detrimental to our progress."
Department of Transportation spokesperson Colin Heyne declined to comment directly on Rast's concerns but indicated that department officials would be prepared to discuss them with the mayor and City Council at the September 29 meeting. In a memo outlining the revised plan, Department of Transportation Director John Ristow and Budget Director Jim Shannon affirmed that consistent funding is crucial for maintaining current service levels and implementing enhancements to security, cleaning, and facility maintenance.
Rast, who is also a Japantown business owner, pointed to city budget documents showing that transfers from the Parking Fund to programs outside the Department of Transportation totaled $972,000 in the most recent fiscal year, which ended in June. She stated that these expenditures have funded initiatives like fireworks, improvements at San Jose Downtown Ice, and business development programs, rather than parking infrastructure. Rast alleged that the board's oversight function has been hampered by incomplete public records, frequent meeting cancellations, and inconsistent financial disclosures. As an example, she noted that transportation staff delayed providing details about the latest rate increase proposal to the board's September 2 meeting, leaving members to review the information during the meeting itself. She also mentioned recently learning about a lawsuit from 2021 where the city sued a homeowners association involved in the management of The Globe Parking Garage, alleging overcharging for upkeep.