San José Measure A Hotel Tax Increase Appears Headed to Victory

The new hotel tax revenue — along with preliminary results in five City Council races — could help soften the night’s sting for Mayor Matt Mahan, whose upstart bid for California governor ended in defeat. While at least one council race is headed to a November runoff, Mahan appears likely to maintain a governing majority on the council.

The council will vote on a final city budget next week, in the face of an estimated $50 million shortfall. An initial spending blueprint, released by the city manager in May, assumed voters would pass Measure A, which increases the tax paid by hotel guests from 10% to 12%.

Measure A is expected to bring in $6.8 million in the upcoming fiscal year and $9.5 million annually in future years. The proposal won support from city leaders, along with both the Labor Council and the San José Chamber of Commerce.

Supporters of Measure A argued the tax increase would allow the city to maintain services as it welcomes tourists downtown for major sporting and cultural events.

There was no organized opposition to the tax hike.

If Measure A were to fail, the city manager proposed cuts to Sunday library hours and downtown police foot patrol.

While the current budget plan includes some cuts, including the elimination of 19 positions, the shortfall is largely filled by tapping $35 million from a budget reserve account.

On the City Council, incumbent Councilmember Peter Ortiz received 45% of the vote in early returns, which could land him in a runoff with either Nora Campos, a former state Assembly member and Vy Dang, a small-business owner — who have each received 20% of the vote.

Ortiz, a leading progressive voice on the council, was the only incumbent not endorsed by Mahan.

Councilmember Bien Doan received backing from both business and labor in his bid for reelection in District 7, which covers Little Saigon and Seven Trees. Initial returns on Tuesday showed Doan just short of the majority vote needed to avoid a runoff.

Van Le, an East Side Union High School District board member, received 24% of the vote, trailed by electrician Rafael Garcia with 18%.

And in District 9, the city’s only open council seat, former police officer Genny Altwer appears headed to the runoff election in November, leading with 31% of the vote in early returns.

Three candidates are closely divided in the race for second: council chief of staff Scott Hughes, small-business owner Mike Hennessy and city engineer Gordon Chester. The winner will succeed Vice Mayor Pam Foley, who is termed out after eight years on the council.

District 1 Councilmember Rosemary Kamei and District 3 Councilmember Anthony Tordillos rolled to reelection on Tuesday night without any opposition.

KQED’s Joseph Geha contributed to this report.