The money, which flows into the city\u2019s Parking Fund, is San Jose\u2019s primary funding source for parking infrastructure. Rast said the city has been underinvesting in such upkeep for years, leading to declining conditions at many city-run garages. To address the problem, she argues, the city should work to improve management of the fund, rather than relying wholly on rate increases.<\/p>\n
She is also raising transparency concerns, alleging city transportation officials have been slow to provide updates to the parking board, undermining the body\u2019s role advising councilmembers on parking related matters. Due to a quorum shortfall at its Sep. 2 meeting, the board has yet to weigh in on the plan to phase in incremental rate increases<\/a> over the next five years.<\/p>\n \u201cBefore approving five years of higher rates and expanded enforcement, Council should require (the Department of Transportation) to provide complete financial and operational information, allow the Downtown Parking Board to formally review the proposal, establish a clear reinvestment plan, and address the transparency and oversight failures already identified,\u201d Rast wrote in her letter.<\/p>\n The parking rate proposal<\/a> is set to go before the City Council on Tuesday. It\u2019s a revised plan drawn up over the course of the past three months after the original proposal sparked major pushback<\/a> from members of the downtown business community, who warned charging visitors more for parking could harm the local economy.<\/p>\n Department of Transportation spokesperson Colin Heyne did not comment on Rast\u2019s concerns, but said department officials will be prepared to do so if asked during Tuesday\u2019s council meeting.<\/p>\n \u201cHer concerns were directed to the mayor and City Council, and we will be happy to discuss them with the mayor and City Council at the meeting on Sept. 29,\u201d he told San Jos\u00e9 Spotlight.<\/p>\n The proposed rate increases are part of the city\u2019s broader effort to balance its ongoing budget deficit, which is expected to top $26 million this year. The new plan seeks to soften the financial blow to businesses<\/a> and workers by spreading out the rate increases across five years instead of imposing them all at once. Under the proposal, the hourly rate for downtown parking meters would increase from $2 to $3 per hour beginning in 2027, and then to $4 in 2030.<\/p>\n Other changes would eventually lead to rate increases at city-run parking garages, and extend the operating time for meters in the downtown core by three hours, meaning they would shut off at 9 p.m. rather than 6 p.m.<\/p>\n Once the rate increases take full effect in 2030, they are expected to generate an additional $4 million in annual revenue to the Parking Fund. The added revenue will help offset the $1.2 million that will be diverted from the fund each year to help shore up the city\u2019s budget, under the plan.<\/p>\n The proposal to tap San Jose\u2019s Parking Fund to fill the city\u2019s budget gap has inflamed longstanding complaints that parking fee revenue has too often been diverted away from transportation programs, leaving insufficient funds to properly maintain parking facilities.<\/p>\n Downtown business leaders said they\u2019ve heard widespread complaints about conditions at city-run garages, including concerns about cleanliness, security, poor lighting, insufficient signage and malfunctioning elevators. They warn such conditions complicate efforts to entice customers to return to downtown.<\/p>\n In a memo laying out the revised parking fee plan, city administrators said stable funding will be important to address these concerns.<\/p>\n \u201cAccordingly, maintaining current service levels and implementing further enhancements to security, cleaning, and facility maintenance requires sufficient ongoing resources within the Parking Fund,\u201d Department of Transportation Director John Ristow and Budget Director Jim Shannon wrote.<\/p>\n Over the most recent fiscal year, which ended in June, revenue transfers from the Parking Fund to programs outside the Department of Transportation amounted to $972,000, according to city budget documents. Such expenditures have gone to fund fireworks, improvements at San Jose Downtown Ice and business development programs, among other priorities, according to Rast.<\/p>\n \u201cEverything but parking,\u201d Rast, a Japantown business owner, told San Jos\u00e9 Spotlight. \u201cThe fact of the matter is the money has been mismanaged. The city has already spent it.\u201d<\/p>\n![\"A](\"https:\/\/www.newsbeep.com\/us-ca\/wp-content\/uploads\/2026\/09\/16-1024x768.jpeg\")
Downtown Parking Board Vice Chair Tamiko Rast said underinvestment in San Jose\u2019s parking infrastructure has led to dilapidated conditions and security problems at city-run facilities, including The Globe Parking Garage at 25 S. Third St. Photo courtesy of Tamiko Rast.<\/p>\n
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