San Jose City Council is set to consider changes to downtown parking rates on September 29, including phased meter increases, longer enforcement hours and higher garage fees as officials seek additional parking revenue while businesses warn about potential economic effects.

The San Jose City Council is scheduled to consider a revised proposal on September 29, 2026, that would gradually increase parking rates and extend meter operating hours as the city seeks additional revenue from its parking system.

The Department of Transportation revised the plan following opposition to an earlier proposal presented in June. City officials said the updated approach incorporates public feedback and spreads increases over several years rather than imposing them immediately.

Meter rates would rise in stages

Under the revised proposal, downtown parking meter rates would increase from $2 to $3 per hour in 2027. Meter enforcement in the downtown core would expand from 6 p.m. to 9 p.m. beginning in 2028.

A further increase planned for 2030 would bring downtown core meters to $4 per hour. Other city meters, including some outside downtown, would reach $3 per hour.

City-run parking garages would also face increases. The proposal would add $1 per hour to garage rates, while the first 90 minutes of parking would remain free.

Revenue tied to city budget pressures

San Jose's fiscal year 2026-27 budget transferred $1.2 million from the Department of Transportation Parking Fund to the city's General Fund. The city's June budget documents said the broader budget addressed a projected $50.3 million shortfall.

Transportation officials project the revised parking changes could generate about $811,000 in additional revenue during the first year, increasing to roughly $4 million annually when the changes are fully implemented in 2030.

Businesses raise economic concerns

Some downtown businesses and parking representatives have argued that higher parking costs could discourage customers and increase costs for workers. The revised proposal includes expanded eligibility for a program offering qualifying downtown employees a 50% parking discount.

Those economic effects remain a point of debate rather than an established outcome. The September 29 council discussion is expected to weigh the city's parking revenue needs against concerns from workers and businesses about the cost of accessing downtown.