COMMUNITY & ECONOMIC
DEVELOPMENT CITY SERVICE AREA
2026-2027 PROPOSED
OPERATING BUDGET
OUTCOMES:
• Thriving, inclusive, and attractive communities and vibrant public spaces • Strong, responsive, and equitable economy
• Accessible and diverse range of housing and business opportunities Presenter: Jen Baker, Director, City Manager’s Office of Economic Development and Cultural Affairs Panelists: Chris Burton, Director, Planning, Building and Code Enforcement Matt Loesch, Director, Public Works
Robert Sapien, Fire Chief
Erik Solivan, Director, Housing
COMMUNITY & ECONOMIC DEVELOPMENT Core Services
Economic Development and
Cultural Affairs
Economic Growth and Business
Development
Cultural Affairs:Sports, Arts, and
Entertainment
Workforce and Talent Development
Fire
Fire Safety Code Compliance
Housing
Affordable Housing Portfolio
Management
Housing Production and
Preservation
Neighborhood Investments
Rent Stabilization and T enant
Protections
Planning, Building and Code
Enforcement
Citywide Land Use Planning
Development Plan Review and
Building Construction Inspection
Public Works
Facilitate Private Development
Utility Permitting
Special Districts Administration
City Geology & Flood Plain
Management
2026-2027 Budget Study Sessions Slide 2
Slide 3
COMMUNITY & ECONOMIC DEVELOPMENT Program Samples*
Economic Development and
Cultural Affairs
Business District and Small Business Support
Business Retention, Expansion, and Attraction
Cultural Investments and Special Events
Sports and Entertainment Planning and Coordination
Training, Education, and Career Support
Real Estate Asset Management
Fire
Fire Development Services
Housing
Affordable Housing Development Loans
Apartment Rent Ordinance Administration
CDBG – Infrastructure Investments
Property Maintenance and Inspection
Planning, Building and Code
Enforcement
Building Development Services
Citywide Planning
Planning Development Services
Planning Environmental Review and
Historic Preservation
Public Works
Public Works Development Services
Utility Franchise Agreements
Downtown Construction
Management
2026-2027 Budget Study Sessions
* For a complete list of programs, please refer to the 2026-2027 Proposed Operating Budget
COMMUNITY & ECONOMIC DEVELOPMENT
PERFORMANCE MEASURE DASHBOARD
Retain, Expand, or Attract Jobs Average Monthly Downtown Foot Traffic Development Project On-Time Reviews for Planning Permit Process
Development Project On-Time Reviews for
Construction Process
Housing Production Rates Rent Stabilization Rates
5,000 5,000
6,355
0 2,000
4,000
6,000
8,000
FY25-26 FY26-27
# of retained, expanded, or attracted jobs from
businesses receiving Business Development
assistance toward the 10,000-job growth goal for
FY25-26 and FY26-27 (OEDCA)
Target
Estimate (actual through Feb + estimate on remainder of FY) 70%
89% 91% 90%
100%
95%
0%
20%
40%
60%
80%
100%
FY22-23 FY23-24 FY24-25 FY25-26 FY26-27
% of development projects completed within published
timelines for first review (PBCE)
Actual Target Estimate
62%
70%
59% 60%
80%
65%
0%
20%
40%
60%
80%
100%
FY22-23 FY23-24 FY24-25 FY25-26 FY26-27
% of development projects completed within published
timelines for first review (PBCE)
Actual Target Estimate
40%
27%
34%
11%
50%
0%
20%
40%
60%
80%
100%
FY23-24 FY24-25 FY25-26 FY26-27
% of San José housing production compared to yearly
target for regional fair share number (RHNA) target for total cycle units (PBCE)
Actual Target Estimate
40%
56%
41%
50% 50%
0%
20%
40%
60%
80%
100%
FY23-24 FY24-25 FY25-26 FY26-27
% of rent stabilized units under the Apartment Rent
Ordinance that did not have a rent increase in the past year (Housing)
Actual Target Estimate
1.72M 1.85M
2.0M
2.2M
1.91M
2.19M
2.56M
2.82M
0 500,000
1,000,000
1,500,000
2,000,000
2,500,000
3,000,000
FY23-24 FY24-25 FY25-26 FY26-27
Daytime Actual Daytime Target Daytime Estimate
Nighttime Actual Nighttime Target Nighttime Estimate
COMMUNITY & ECONOMIC DEVELOPMENT Budget Summary
Department 2025-2026
Adopted
2026-2027
Forecast
2026-2027
Proposed
% Change
from Forecast
OEDCA $72,739,037 $58,880,326 $60,119,952 2.11%
Fire* $8,453,273 $8,373,990 $8,570,028 2.34%
Housing* $153,474,903 $62,841,373 $62,024,749 (1.30%)
PBCE* $63,009,091 $61,951,695 $62,879,736 1.50%
Public Works* $20,908,510 $21,341,037 $22,012,425 3.15% CSA Total $318,584,814 $213,388,421 $215,606,917 1.04%
Positions 481.77 482.46 484.90 0.51%
* The Fire, Housing, PBCE and Public Works Departments have additional funding budgeted in the Neighborhood Services (Housing, PBCE, Public Works) and Public Safety (Fire) City Service Areas 2026-2027 Budget Study Sessions Slide 5
COMMUNITY & ECONOMIC DEVELOPMENT
BUILDING MORE HOUSING FOCUS AREA
Long-Term Goal: Meet residents’ housing needs across income levels by making San José a great place to build housing.
Problem Area 1: City codes and policies as well as regional regulations may be contributing to making the permit process less predictable and not optimized for speed.
Problem Area 2: The City’s development fees, taxes, and development services processes are currently structured in a way that creates challenges for predictability and transparency throughout the permitting process.
Problem Area 3: Current financing tools are limited in use and do not adequately support the goal of building more housing at all income levels.
COMMUNITY & ECONOMIC DEVELOPMENT
GROWING OUR ECONOMY FOCUS AREA
Long-Term Goal: Cultivate an environment for thriving businesses and resident prosperity
Problem Area 1 : Business Development Ecosystem. San José must value and optimize employment lands, attract priority industries, and elevate the City’s marketing and brand to drive investment and job growth.
Problem Area 2: Infrastructure and Site Readiness. Companies need a modern grid, readily developable industry-serving sites, and infrastructure to support innovative industries.
Problem Area 3: Small Business and Neighborhood Business District Investments. Small businesses and neighborhood districts need placemaking that activates storefronts, connects public spaces, and creates inviting environments that support consumer activity and positive social interaction.
Problem Area 4: Experience Economy. The City must build greater capacity to attract visitors, talent, and investment through enhanced destinations, streamlined event delivery, and vibrant, experience-rich environments.
COMMUNITY & ECONOMIC DEVELOPMENT
2026-2027 PRIORITIES / SERVICE DELIVERY
• Economic Strategy Work Plan
• Experience Economy Financing Tools
• 2027 Celebrations Strategy
• Affordable Housing Alternative Financing Strategies
• Ministerial Planning Permit Process
• Local Building Codes and Administrative Policies
Evaluation
• Development Fee Framework Policy
• Electric Grid Upgrades and Capacity Enhancements
2026-2027 Budget Study Sessions
Slide 9
COMMUNITY & ECONOMIC DEVELOPMENT Proposed Budget Actions Proposal Title Amount
Previously
Funded
One-Time?
Tri-Element General Plan Consultant Services $500,000
Historic Buildings Inventory $250,000
Business Outreach and Development Staffing (Cont.) $535,846 Y Major Events Staffing and Programming $350,000
Stitching Districts Initiative $250,000 Y
Enhanced Infrastructure Financing District
Assessment $100,000
East Side Revitalization Plan $50,000
San José Works – Youth Jobs Initiative ($200,286)
COMMUNITY & ECONOMIC DEVELOPMENT
SUMMARY
• Cultivate a thriving business development ecosystem
• Advance the experience economy
• Facilitate housing production
• Increase certainty in development services process
COMMUNITY & ECONOMIC
DEVELOPMENT CITY SERVICE AREA
2026-2027 PROPOSED
OPERATING BUDGET
OUTCOMES:
- Thriving, inclusive, and attractive communities and vibrant public spaces - Strong, responsive, and equitable economy
- Accessible and diverse range of housing and business opportunities Presenter: Jen Baker, Director, City Manager’s Office of Economic Development and Cultural Affairs Panelists: Chris Burton, Director, Planning, Building and Code Enforcement Matt Loesch, Director, Public Works
Robert Sapien, Fire Chief
Erik Solivan, Director, Housing