Facing a torrent of complaints from residents who said they felt blindsided by the proposal \u2014 originally slated to be approved without discussion \u2014 councilmembers agreed to push the matter to their next meeting, which won\u2019t be until Aug.\u00a011 due to the summer recess. In the meantime, they have directed staff to step up efforts to consult with the businesses that may be impacted<\/a> and also consider ways to recalibrate the change so as to lighten the economic blow for downtown.<\/p>\n Joseph Lassman, an employee at Cash Only<\/a>\u00a0on Santa Clara Street, said he is encouraged by proposals raised during the meeting to boost city programs that subsidize parking for downtown workers like himself. Nevertheless, he remains wary.<\/p>\n \u201cWe work hard to keep money flowing into downtown San Jose, so I feel like we should at least have a place where we can park our cars safely for free or a very discounted rate,\u201d he told San Jos\u00e9 Spotlight.<\/p>\n The city\u2019s existing employee parking program allows workers to park in downtown garages at a 50% discount, though some workers said they prefer parking at meters visible from their place of work because they fear break ins.<\/p>\n The proposed meter changes cover roughly 1,600 spaces in a portion of downtown bounded by Highway 87 and Fourth Street to its west and east \u2014 and East Julian Street and Highway 280 to its north and south. The changes would extend the operating hours for these meters by three hours, delaying the shut off time from the current 6 p.m. to 9 p.m. The proposed fee increases would impact 900 spaces.<\/p>\n The parking meter rate changes, the first major adjustment in San Jose for\u00a0more than a decade, is an attempt by the city to capitalize on downtown\u2019s growing nightlife scene, which has led to a spike in evening business activity. Officials estimate the changes would generate roughly $1.2 million in additional annual revenue.<\/p>\n The staff report notes that San Jose\u2019s parking rates are well below other major Bay Area cities, with San Francisco parking fees topping out at $13 an hour and Oakland fees reaching a maximum of $4 an hour.<\/p>\n The increase is one of several proposals from the city Department of Transportation to increase parking related revenue that came out of the recent budgeting process<\/a>, which wrapped up earlier this month<\/a>.<\/p>\n Finding a resolution that satisfies downtown businesses while also meeting the city\u2019s revenue needs may be tricky.<\/p>\n Revenue from the proposed parking fee hike has already been factored into the recently approved $5.5 billion budget for the upcoming fiscal year, which begins July 1. Even delaying the vote seven weeks is expected to cost the city more than $150,000, cutting into reserve funds.<\/p>\n On the other side, several downtown workers said the increased rates would wipe out enough of their paycheck that they would need to look for work elsewhere. Business owners said charging visitors more for parking would undermine the city\u2019s longstanding effort to create a vibrant downtown<\/a>.<\/p>\n \u201cThis is essentially a tax on the small businesses, the residents and the employees and the visitors that are coming in, which I think would be too much of a cost to bear,\u201d Alan \u201cGumby\u201d Marques, a downtown business owner<\/a>, said at the meeting. \u201cThis is something that will literally kill the momentum we worked so hard for in the last 10 years.\u201d<\/p>\n Responding to the criticism, several city leaders said they agreed that community outreach about the meter rate increase had not been sufficient.<\/p>\n \u201cIt\u2019s clear the community at large did not know about this increase,\u201d Vice Mayor Pam Foley said at the meeting. \u201cMany (downtown businesses) are thriving because of 2026 (major sporting events<\/a>) right now, but when that goes away, will they continue to thrive with the increase?\u201d<\/p>\n![\"Public](\"https:\/\/www.newsbeep.com\/us-ca\/wp-content\/uploads\/2026\/06\/IMG_6212-1024x768.jpg\")
Dozens of people spoke during the San Jose City Council meeting on June 23, 2026 to voice concerns about the parking meter rate hike. Photo by Keith Menconi.<\/p>\n![\"In-line](\"https:\/\/www.newsbeep.com\/us-ca\/wp-content\/uploads\/2026\/03\/interactive-321838904008.png\")
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