San Jose council votes 9-2 to oppose a tax-limit measure

San Jose
City Council Meeting
June 16, 2026

TL;DR

• The council voted 9-2 to oppose a November ballot measure that would make it harder to raise local taxes. Members said it could cost the city up to $130 million a year.
• The council funded 22 interim housing sites for the coming year and switched operators at one site.
• The city agreed to buy a historic downtown building for $3.6 million, with strings tied to 276 nearby apartments.
• The council adopted the city's 2026-2027 budget, which passed 11-0 with no public comment.
• The council approved three-year contracts with city dispatchers, inspectors, and legal staff, plus matching raises for some managers.

What happened

1. Council votes to oppose a November tax-limit measure, 9-2
   1. The council voted 9-2 to formally oppose a measure on the November statewide ballot that would make it harder to raise local taxes. City staff and council members said it would also cancel some taxes that voters had already approved. Councilmembers Casey and Doan voted no, saying voters should decide the measure on their own.
   2. What this means for you: The council's vote is a statement of opposition. It does not change any tax you pay or service you use right now. If the measure passes in November, council members said the city could lose $98 million to $130 million a year. They said that money helps fund the city's homelessness programs and, through taxes on new development, pays for libraries, parks, and fire stations.
2. City funds 22 interim housing sites for the coming year
   1. The council approved grant agreements to keep the city's interim housing system running through June 2027. The deals cover 22 sites that the city said house about 2,500 people. The council also switched the operator at one site, taking back about $5.4 million from one nonprofit and re-granting about $5.2 million to another.
   2. What this means for you: For now, the city's shelter beds, motel rooms, and safe-parking spots stay funded through June 2027 across all 22 sites. The sites are run by nonprofits including HomeFirst, PATH, and LifeMoves. The single largest contract, $7.01 million, funds the Rue Ferrari housing site.
3. City buys a historic downtown building, with strings attached
   1. The council agreed to buy a vacant downtown property, including the historic Knox-Goodrich building, for $3.6 million. The deal includes a $975,000 holdback tied to whether a developer starts building 276 apartments nearby by December 31, 2026. Councilmember Tordillos, whose district includes the site, said the city is paying about 60% less than the prior owner paid in 2019. The mayor and Councilmembers Cohen and Ortiz recused over campaign contributions, so the vote was 8-0.
   2. What this means for you: For downtown, this puts a vacant block near the light rail station into the city's hands. The $975,000 holdback gives the city leverage to push the separate 276-unit Gifford Apartments project to start construction. The two are linked through this deal, but city staff said approving one does not fast-track the other.
4. Council adopts the city's 2026-2027 budget
   1. The council gave final approval to the city's budget for the year that starts July 1, 2026. It passed 11-0 with no one speaking in public comment. The council also set the city's spending limit, required by the state, at $1,697,953,660.
   2. What this means for you: This sets what the city can spend on the services you use, like police, fire, parks, and libraries, starting in July. Council members said the council made the main budget choices the week before, during budget season.
5. City approves three-year union contracts and manager raises
   1. The council approved new three-year contracts with three city employee groups: police dispatchers, building inspectors, and legal staff. The contracts run from July 1, 2026 through June 30, 2029. The council extended comparable pay and benefit changes to some managers and other employees who are not in a union.
   2. What this means for you: The deals set wages and working terms for these employees through 2029. The city manager said each group had already voted to accept the deals. The agreements also add new rules on the city's use of artificial intelligence.

What residents brought up

1. The tax measure. More than a dozen people spoke on the tax measure, and they split sharply. Speakers from the Santa Clara County Association of Realtors and the Silicon Valley Taxpayers Association asked the council to stay neutral. They framed the measure as taxpayer protection, and one called San Jose the least affordable city in the world. Others, including a speaker from the Santa Clara Valley Open Space Authority, backed the council and cited the plan to cancel taxes voters already passed.
2. The downtown land deal. Three neighbors raised concerns about tying the downtown purchase to the nearby Gifford Apartments project. A Gifford Avenue resident who co-leads a neighborhood group said the city should buy the property now and settle the $975,000 holdback later. She worried the December deadline would pressure planning staff to rush approval of the 276 apartments. A Delmas Park resident said the developer had sat on the Gifford site for years and asked to split or delay the vote.

Also happened

• Renewed assessments for four business improvement districts: Alum Rock/Santa Clara Street, Downtown, Japantown, and The Alameda.
• Authorized removing large vehicles from 13 street segments and overnight-parked vehicles from 6 more, and changed speed limits on 14 roads.
• Awarded two street-paving contracts, about $3.48 million for sealing and about $5.56 million for resurfacing south-side streets.
• Approved a $500,000 loan to rehab Casa de Clara, an affordable transitional housing site at 318 North 6th Street.
• Settled a claim from Gordon Biersch Brewing Company for $400,000, with Councilmember Campos casting the lone no vote.
• Finalized zoning updates to match new state laws, including allowing day care centers inside apartment buildings.

For any updates or corrections, please email steven@polisdesk.com