Parking Meter and Garage
Rates and Hours
OUTREACH → ACTIVE LISTENING → REVISED PROPOSAL
September 29, 2026
City Council - Item: 5.2
CITY OF SAN JOSÉ · DEPARTMENT OF TRANSPORTATION 1
John Ristow – Director, Department of Transportation
Jim Shannon– Director, Budget Office
Heather Hoshii – Deputy Director, Transportation Safety, Operations and Parking Presentation Overview ROADMAP
CITY OF SAN JOSÉ · DEPARTMENT OF TRANSPORTATION 2
1 Budget Context
and City Council
Direction
General Fund shortfall
Budget process
Council direction
2 Revenue,
Rates
and
Benchmarking
Meter revenue history
Peer cities
Nearby alternatives
3 Outreach
and Feedback
Stakeholder
touchpoints
Public
communications
Proposal status
briefings
4 Parking
Programs
Downtown Employee
parking permit
5 Recommended
Proposal
and Next Steps
Proposal evolution
Alt B recommendation
Parking Fund uses
and plan next steps
Background Context & General Fund Shortfall BUDGET CONTEXT FY 2027-2031 Revised General Fund
5-Year Forecast (May 2026) 2026-2027 2027-2028 2028-2029 2029-2030 2030-2031 5-Year Shortfall
Incremental Surplus/(Shortfall) ($50.3)* ($26.8) ($11.8) $13.8 $11.6 ($63.5) Total Cumulative (Shortfall) ($50.3) ($77.1) ($88.9) ($75.1) ($63.5) ($63.5) * Does not include: 1) costs associated with services that were funded on a one-time basis in 2025-2026; 2) costs associated with unmet/deferred infrastructure and maintenance needs; and 3) one-time revenue sources or expenditure needs. **Revised from the $56.0M shortfall presented in the Forecast released in March 2026.
CITY OF SAN JOSÉ · DEPARTMENT OF TRANSPORTATION 3
City Council Direction and Budget Process
CITY OF SAN JOSÉ · DEPARTMENT OF TRANSPORTATION
City Council Direction Budget Process / City
Council Approval 6/9 & 6/16
Proposed 2026-2027 Budget
outlined Changes to
Parking Meter Hours and
Rates – (Transfer from PF
to GF $1.2M + Additional
Impacts)
Mayor’s June Budget Message
(Parking Fund Impacts)
- Convention Center 90-
minutes Free Parking
Expansion (-$350K)
- Downtown Ice Funding
(-$150K)
June 23, 2026 – City
Council Meeting
Consent Agenda -
Update the Parking
Rate Resolution to align
with the
2026-2027 Adopted
Operating Budget
Public Comment
highlighted concerns
related to
- Impacts to customers
- Impacts to downtown
employees
- Equity of impacts
.
City Council Direction
Conduct additional
outreach and obtain
feedback on
proposed meter hour
and rate changes
Return to City Council to
report on:
- Outreach conducted
and feedback
received
- High level analysis
on potential
alternatives to
generate $1.2M
City Council approval of
Mayor’s March Budget
Message for FY 2026-2027:
Preserve resources for the
City’s most important
priorities and core services
to the maximum extent
possible
Employ a range of
strategies to resolve the
ongoing shortfall, including
increasing cost recovery
levels for fee-supported
services and the
identification of new or
expanded revenue streams
BACKGROUND CONTEXT
4 Historical Meter Revenue and Rates REVENUE & RATES
FY
2012-2013
$2.4
FY
2013-2014
$2.7
FY
2014-2015
$4.0
FY
2015-2016
$4.1
FY
2016-2017
$4.1
FY
2017-2018
$3.9
FY
2018-2019
$4.3
FY
2019-2020
$3.0*
FY
2020-2021
$1.6**
FY
2021-2022
$2.9***
FY
2022-2023
$3.0
FY
2023-2024
$3.2
FY
2024-2025
$3.2
HOURLY METER RATES
Citywide
$1 / hour
Downtown $2 / hour
Exterior $1 / hour Citywide $2 / hour
* Impact to revenue from COVID-19 Pandemic (begins March 2020) ** Return to paid meter parking within the downtown (Oct 2021) *** Return to paid meter parking outside the downtown (Oct 2022) CITY OF SAN JOSÉ · DEPARTMENT OF TRANSPORTATION
ANNUAL METER REVENUE
5 Benchmarking – Parking Rates and Hours RATES & HOURS
Benchmark
group
City / agency Days & hours Rate
Peer cities San Francisco (SFMTA) Every day
9 a.m.–10 p.m.
Up to $13/hr
Sacramento Every day
8 a.m.–10 p.m.
Up to $6/hr
Oakland Every day
8 a.m.–6 p.m.
Lake Merritt: 8 a.m.–8 p.m.
Up to $4/hr
San José Current meters Mon–Sat
9 a.m.–6 p.m.
$2/hr
Proposed meters
(end of 5 years)
Mon–Sat
Downtown: 9 a.m.–9 p.m.
Exterior: 9 a.m.–6 p.m.
Downtown: $2 → $4/hr
Exterior: $2 → $3/hr
Proposed garages
(end of 5 years)
Every day
24/7
Special events: $10 → $15 flat
Hourly: $4 → $5/hr
Nearby
alternatives
Los Gatos / Santa Clara / Campbell Every day
Time limits in select areas
Free
Santana Row (private) Every day
24/7 garages and on-street
On-street: $3/hr
Garages: first 2 hrs free; then $3/hr
CITY OF SAN JOSÉ · DEPARTMENT OF TRANSPORTATION 6
Benchmarking – Parking Rates and Hours
Peer Cities
Benchmark active downtown parking
programs that balance daily and eventdriven demand
San Francisco, Oakland, and Sacramento
use rates and operating hours as parkingmanagement tools Nearby Alternatives
Generally free with time limits
- Santana Row charges $3 per hour for
on-street and
- Offers 2 hours free in garages before
$3 per hour rate applies
Rates are only one factor in destination
choice; distance, fuel, convenience,
businesses, restaurants, entertainment,
and events also matter
After proposed phased changes,
Downtown San José meter rates and hours
will remain within or below peer cities
RATES & HOURS
7 Outreach Completed FEEDBACK
8 STAKEHOLDER
TOUCHPOINTS
July 17 – September 2
Feedback
received during
outreach
sessions
informed
adjustments to
the proposal.
CITY OF SAN JOSÉ · DEPARTMENT OF TRANSPORTATION
Individual Outreach/Proposal
Status Briefings:
• SJDA (3)
• Council Offices (9 of 10)
JUL 17
SJDA
Advocacy
Group
JUL 23
SOFA
Committee
JUL 31
San Pedro /
Little Italy
JUL 31
DOT Blog Post
Published
AUG 3
Paseo
Committee
AUG 4
Historic
District
AUG 5
Parking Board
Special Meeting
AUG 13
SJDA Board
Meeting
AUG 22
Parking Board
Meeting
Announcement
SEP 2
Parking Board
Regular Meeting
SEP 8
DOT Blog Post
Published
SEP 19
DOT Social
Media
Published
SEP 23
DOT Social
Media
Published
SEP 28
DOT Social
Media
Published
Stakeholder meeting Public communication
6 PUBLIC
COMMUNICATIONS
8 Parking Program – $50 Employee Parking Permit
Existing Program Qualifiers
Employed within a meter district
Earning no more than minimum wage* +
30%.
Proposed Program Qualifiers
Employed within a meter district
Earning no more than minimum wage** +
50%.
Notincluding tips/gratuities.
*Fast Food Workers: $26.00/hour (effective April 1, 2024) – Statewide minimum wage $20.00 x 30% ($6.00) above minimum = $26.00 All Others: $23.34/hour (effective January 1, 2025) – City of San José minimum wage $17.95 x 30% ($5.39) above minimum = $23.34 **Fast Food Workers: $26.00/hour (effective April 1, 2024) – Statewide minimum wage $20.00 x 50% ($10.00) above minimum = $30.00 All Others: $23.34/hour (effective January 1, 2025) – City of San José minimum wage $17.95 x 50% ($8.98) above minimum = $26.93 9 Proposal Evolution EVOLUTION
ORIGINAL
Starting proposal
ALTERNATE “A”
First 5-year phase-in
Recommended: ALTERNATE “B”
Reordered 5-year phase-in
Downtown Core Meters: Extend
Meter Hours 6 – 9 PM
Downtown Core Meters: $2 per Hour
Rate Increase within 2-blocks of a
Parking Garage Offering 90-Minutes Free
1-Year Implementation Schedule
Y1
Y2
Y3
Y4
Y5
5-Year Implementation Schedule
90- Minutes Free Remains Unchanged
Y1 Garage: $3 Event and $1 per
Hour Rate Increase
Y2 Downtown Core Meters: $1
per Hour Increase
Y3 Downtown Core Meters: Extend
Meter Hours 6–9 PM
Y4 Garage: $2 Event Rate Increase
Y5 All Meters: $1 per Hour
Increase
CITY OF SAN JOSÉ · DEPARTMENT OF TRANSPORTATION
Y1
5-Year Implementation Schedule
90- Minutes Free Remains Unchanged
Downtown Core Meters: $1
per Hour Increase
Downtown Core Meters: Extend
Meter Hours 6–9 PM
Garage: $1 per Hour Rate
Increase
All Meters: $1 per Hour
Increase
Garage: $3 Event Rate Increase
10 Recommended Alternate “B” — Extended 5-Year Implementation Schedule RECOMMENDED
PROPOSAL
Alternate Proposal: 5-Year Parking Rate & Hour Adjustments Program / Adjustment Y1
FY2026–2027
Y2
FY2027–2028
Y3
FY2028–2029
Y4
FY2029–2030
Y5
Ongoing
General Fund transfer commitment ($1.20M) ($1.200M) ($1.200M) ($1.200M) ($1.20M) 90-minute free CC Garage (non-event days) ($0.146M) ($0.350M) ($0.350M) ($0.350M) ($0.350M) SJDA / Downtown Ice ($0.150M)
($1.496M) ($1.550M) ($1.550M) ($1.550M) ($1.55M)
Increase Garage Event Rate ($3)
Increase Garage Hourly Rate ($1)
Effective Oct. 2026
$0.225M
$0.586M
$0.300M
$0.878M
$0.300M
$0.878M
$0.300M
$0.878M
$0.300M
$0.878M
Increase Parking Meter Rates: Greater Downtown Area
($1/hour)
Effective Jul. 2027
— $0.814M $0.814M $0.814M $0.814M
Extend Meter Hours: Greater Downtown Area (6p.m. - 9
p.m.)
Effective Jul. 2028
— — $0.842M $0.842M $0.842M
Increase Garage Event Rate ($2)
Effective Jul. 2029 — — — $0.20M $0.20M
Increase Parking Meter Rates: All Meters: ($1/hour)
Effective Jul. 2030 — — — — $0.993M
$0.810M $1.992M $2.834M $3.034M $4.027M
Cumulative Parking Fund impact ($0.685M) ($0.243M) $1.041M $2.525M $5.002M 90-minutes free at City Garages remains unchanged during the 5-year implementation Convention Center Garage Pilot Implementation: 9/15/26
CITY OF SAN JOSÉ · DEPARTMENT OF TRANSPORTATION 11
Parking Fund - Uses FUND CONTEXT
CITY OF SAN JOSÉ · DEPARTMENT OF TRANSPORTATION
Parking System
Operations
Meter Shop:
maintenance,
repair, install,
revenue collection
Off-Street Parking
Operator: daily
operations;
cleaning &
maintenance
Stationary & vehicle
security patrols
Parking System
Maintenance
Facility Painting
Facility Signage
ADA compliance
Structural repairs
Roof / Floor /
Fencing repairs
Power washing
Parking System Capital
Improvement
Garage Security
Camera System
Upgrade ($1.5M)
Market St Garage
exit/entrance
modifications ($1M)
2nd / San Carlos Garage
elevator addition
($11M - $15M)
Meter technology
upgrade & equipment
replacement ($2.5M)
Support
Downtown Ice
SJDA Annual
Contract
General Fund
90-minutes Free Parking
For example: For example: For example: For example:
12 Parking Fund – Uses: New Revenue & Parking Plan NEXT STEPS CITY OF SAN JOSÉ · DEPARTMENT OF TRANSPORTATION
Use any new revenues above existing commitments to strengthen the parking system and plan for future needs.
Parking & Curb Management
Plan Draft
Use current technology-based
curb management study data
Layer in parking utilization,
garage, meter, and transportation
datasets
Root recommendations in San
José-specific demand, access,
event, and neighborhood
conditions
Stabilize & Reinvest
Stabilize the General-Purpose
Parking Fund
Support daily operations,
maintenance, cleaning, and
security
Fund vital CIP and maintenance
needs: elevators, meter
technology, cameras, garage
access, façades, and repairs
Future Options
Build capacity for reserves and
long-term capital needs
Scope potential revenue-sharing
or reinvestment models only after
fund performance, solvency, and
obligations are evaluated
Engage the Downtown Parking
Board during the five-year
implementation period
13 Parking Meter and Garage
Rates and Hours
QUESTIONS
CITY OF SAN JOSÉ · DEPARTMENT OF TRANSPORTATION 1
John Ristow – Director, Department of Transportation
Jim Shannon– Director, City Manager’s Budget Office
Heather Hoshii – Deputy Director, Transportation Safety, Operations and Parking September 29, 2026
City Council - Item: 5.2