Meanwhile, officials have also added a provision to\u00a0expand eligibility for a city program that subsidizes parking for downtown workers in response to concerns raised by people who commute to downtown jobs by car and must pay for parking. Workers have previously said the increased rates would wipe out enough of their paycheck that they would need to look for work elsewhere.<\/p>\n
After councilmembers rejected the first rate increase plan in June amid widespread outcry<\/a>, the city held public meetings to draw feedback as staff worked to hammer out updated proposals.<\/p>\n \u201cThe phased approach lessens immediate impacts on employees and customers, improves management of the parking system, and generates sufficient revenue over the longer term to support the General Fund transfer and future parking system improvements,\u201d Department of Transportation Director John Ristow and Budget Director Jim Shannon wrote in a memo outlining the plan.<\/p>\n The original proposal, the first major attempt to adjust parking rates in the city for over a decade, called for raising rates from $2 an hour to $4 an hour at 900 downtown meters. In addition, the changes would have also extended\u00a0operating hours for about 1,600 downtown meters,\u00a0delaying the shut off time from the current 6 p.m. to 9 p.m.<\/p>\n Backers said San Jose needs the extra revenue from the rate increase \u2014 originally projected to total $1.2 million \u2014 to balance the city\u2019s ongoing budget deficit, which is expected to top $26 million this year<\/a>. But downtown businesses fear that increasing rates will dissuade customers from visiting, undermining the city\u2019s efforts to create a vibrant commercial core<\/a>.<\/p>\n Responding to the new proposal, San Jose Chamber of Commerce CEO Leah Toeniskoetter said the phased approach is \u201cmore manageable\u201d than the original, and applauded city officials for incorporating feedback from the business community<\/a> into the revised proposal.<\/p>\n Still, she said, their underlying concern remains.<\/p>\n \u201cIncreasing parking rates and eventually extending meter hours to 9 p.m. adds to the cost of choosing downtown at exactly the time we\u2019re working to bring more people here to eat, shop and spend time,\u201d Toeniskoetter told San Jos\u00e9 Spotlight.<\/p>\n If councilmembers approve the revised plan, the first change would take place this year, increasing rates at city parking garages by an additional $1 an hour, with a sharper increase for special event days. The city will continue to offer the first 90 minutes of garage parking for free.<\/p>\n Under the plan, next year would see parking meter rates in the greater downtown area increase by $1 per hour to a total of $3. Then in 2028, the three-hour extension of meter operating time to 9 p.m. would take effect for downtown parking spaces.<\/p>\n The final increase would take place in 2030, when all parking meters across the city would increase by another $1 an hour. For those in the downtown core, that would mean an hourly rate of $4. For parking meters elsewhere in the city \u2014 such as those around the County Government Center and in Japantown \u2014 the new rate would be $3 per hour.<\/p>\n The proposal\u00a0also loosens income limits for the city\u2019s employee parking program, which allows workers to park in downtown garages at a 50% discount. Workers have said the current limit \u2014 which bars anyone making more than 30% above the city\u2019s minimum wage<\/a> of $18.45 an hour \u2014 excludes many in the downtown workforce who need the financial assistance.<\/p>\n The more gradual approach to fee increases means that revenue generation will also take time to ramp up, with about $811,000 in extra funds expected this year. That figure is projected to rise each year, reaching $4 million in 2030.<\/p>\n San Jose\u2019s parking rates are well below other major Bay Area cities, according to city staff, with San Francisco parking fees topping out at $13 an hour and Oakland fees reaching a maximum of $4 an hour.<\/p>\n Meanwhile, downtown workers said even with more gradual increases, they still expect to feel a financial pinch.<\/p>\n \u201cEither way that they spend this is still gonna affect us negatively. It\u2019s going to affect everybody negatively that works in the industry,\u201d Joseph Lassman, an employee at Cash Only on Santa Clara Street, told San Jos\u00e9 Spotlight. \u201cThere\u2019s got to be other ways that they could find money for this budget.\u201d<\/p>\n![\"In-line](\"https:\/\/www.newsbeep.com\/us-ca\/wp-content\/uploads\/2026\/09\/1790267769_94_interactive-321838904008.png\")
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