San Jose delays ranked choice voting to 2028; parking hike on hold

San Jose
City Council Meeting
June 23, 2026

TL;DR

• The council moved a ranked choice voting measure toward the 2028 ballot, not this November.
• Council paused a downtown parking rate increase until August.
• The city renewed about $6.2 million for homeless services.
• The council approved up to $6,253,458 in tax and fee breaks for a North San Jose apartment building.
• The airport will get two large billboards, over public opposition.

What happened

1. Ranked choice voting heads toward the 2028 ballot, not this November
   1. The council voted to move a ranked choice voting measure toward the 2028 primary ballot instead of November 2026. The measure would let future councils choose ranked choice voting to fill a mayor or council vacancy. It would not require the city to use it. The change still returns to council for a final vote before it reaches the ballot. Council members Foley and Casey voted no.
   2. What this means for you: Council members moved the vote to 2028 mainly to save money. Putting it on this November's ballot would cost about $2.7 million, since only three districts hold elections then (stated in meeting). Adding it to the citywide 2028 primary would cost under $700,000 (stated in meeting). If voters approve it, the city could fill a future vacancy with one election instead of a separate runoff.
2. Downtown parking rate hike paused until August
   1. The council delayed a plan to raise downtown parking meter rates and extend paid hours. The proposal would set meters at $4 an hour near city garages and run them until 9 p.m., Monday through Saturday. Councilmember Casey moved to defer it to the August 11 meeting. The vote was unanimous, with Ortiz absent.
   2. What this means for you: If you park downtown, your meter rate and hours stay the same for now. The increase was already in the city budget, so the delay leaves a roughly $150,000 to $200,000 gap the parking fund will absorb (stated in meeting). Staff expect no service cuts from that gap (stated in meeting). Before the August vote, the city will reach out to downtown businesses and study employee parking discounts and citywide alternatives.
3. City renews about $6.2 million for homeless services
   1. The council extended grants for programs that serve people experiencing homelessness. Housing staff put the total at about $6.2 million across several funding sources (stated in meeting). The money funds street outreach, mobile showers and laundry, youth housing, domestic violence support, and bus passes. The vote was unanimous, with Ortiz absent.
   2. What this means for you: These services keep running under the renewed grants. The largest grant, $2 million, funds youth housing through the Bill Wilson Center into December 2027. Other providers include WeHOPE, HomeFirst, PATH, and the YWCA Golden Gate Silicon Valley. Each grant can be extended with options that run no later than June 2030.
4. City approves up to $6,253,458 in breaks for North San Jose housing
   1. The council approved a tax and fee break for a new apartment building in North San Jose. The waiver covers up to $6,253,458 in construction taxes and affordable housing fees. The building is part of the 0 Seely project at 681 East Trimble Road. Mayor Mahan stepped aside from this vote, citing a campaign contribution from an employee of the developer.
   2. What this means for you: The building will add 372 homes, with 19 reserved as affordable (stated in meeting). Those affordable units target households earning up to 110% of the area's median income (stated in meeting). The waiver lowers the developer's construction taxes and affordable housing fees. The wider project at Seely and Montague is planned for about 1,400 homes (stated in meeting).
5. Airport gets two large billboards, over public opposition
   1. The council cleared two large billboards on airport land along Highway 101. The city will lease the space to OUTFRONT Foster Interstate for an initial 10 years. Each sign measures 14 feet by 48 feet and stands about 55 feet above the ground (stated in meeting). Councilmember Mulcahy stepped aside from the vote, citing a financial conflict.
   2. What this means for you: The deal brings the airport at least $600,000 a year, or 55% to 60% of the ad revenue (stated in meeting). To put up the two signs, the company will take down 12 older billboards elsewhere in the city (stated in meeting). Those removals target low-income, high-crime areas (stated in meeting). The plan also requires planting five trees for every tree removed (stated in meeting).

What residents brought up

• Downtown parking. More than a dozen downtown workers and business owners filled public comment to oppose the parking increase. They said the city did little outreach before folding the hike into the budget. One downtown worker said they pay about $400 a month to park (stated in meeting). A restaurant manager said the new $4 rate would cost back-of-house staff about 20% of their pre-tax pay (stated in meeting). The San Jose Downtown Association asked the city to route the change through the Downtown Parking Board first (stated in meeting).
• Ranked choice voting. The proposal drew a large turnout of speakers on both sides. Supporters included residents and groups like Better Elections for Santa Clara County and the Latina Coalition of Silicon Valley. They said it saves money on runoffs and rewards candidates with broad community support (stated in meeting). They cited past runoff costs, including about $13 million for a recent county assessor race (stated in meeting). Opponents said the system is confusing, hard to audit, and can produce a winner without a true majority of first-choice votes (stated in meeting).
• Homeless sweeps. One speaker linked the homelessness grants to the recent clearing of the Columbus Park encampment. They said people there were directed to a housing list that, by their account, does not exist (stated in meeting). They said some people were cleared from the area again that morning (stated in meeting). They urged the council to provide housing rather than repeat the sweeps (stated in meeting).

Also happened

• The council approved a 15-year renewable energy deal with Shell Energy North America, estimated at $8,300,000 a year and up to $124,500,000 total.
• It extended the animal-services contract with Milpitas for nine years, adding $8,627,205.
• It awarded a contract of up to $19,974,000 for construction on the Willow-Keyes corridor in District 3.
• It put the city in charge of the Branham Lane interim housing site, replacing the operator LifeMoves.
• In closed session, the council directed the city attorney to support a lawsuit opposing an immigration detention facility planned near Gilroy.
• It added curbside battery collection for single-family homes through two waste haulers.

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