3.24.26 MEETING MINUTES APPROVED.PDF
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Minutes of the Federal and State Advocacy Review Council Subcommittee meeting held on March 24, 2026 at 12:30 p.m., Hybrid Meeting- Tempe City Hall, 31 E. 5th St. 3rd Floor Large Conference Room and virtually through Microsoft Teams. Members Present: Councilmember Nikki Amberg – Chair Vice Mayor Doreen Garlid Councilmember Randy Keating City Staff Present: Jonathan Shuffield, Director, Government Relations Darrell Duty, Interim Fire Chief Anthony Butch, Assistant Fire Chief Keaton Hill, Council Assistant Melissa Westbrook, Council Assistant Parrish Spiz, Council Assistant, Ty Lee, Council Assistant Greg Ruiz, Interim Chief Deputy City Manager Keith Burke, Deputy City Manager Lisette Camacho, Deputy City Manager/CFO Eric Anderson, City Attorney Eric Iwersen, Director, Sustainability & Transportation Kris Baxter, Director, Communications & Marketing Office Dr. Jacqueline Webster, Deputy Director, Community Health & Human Services – Social Services Tara Ford, Director, Public Works Tim Burch, Director, Community Health & Human Services Ryan Levesque, Deputy Director, Community Development – Planning Rosa Inchausti, City Manager Benicia Benson, Administrative Analyst Craig Caggiano, Deputy Director, Public Works – Water Laura Calder, Director, Financial Services Kyle Carman, Assistant Fire Chief Minutes Federal and State Advocacy Review Council Subcommittee March 24, 2026 Alex Jovanovic, Deputy Director, Community Services – Parks Kenneth McCoy, Police Chief Dr. Velicia McMillan Humes, Director, Diversity, Equity, and Inclusion Dane Sorensen, Assistant Police Chief Shawn Wagner, Deputy Director, Community Services – Recreation Tanya Chavez, Director, Mayor and Council Relations Stakeholders/Members of the Public: Don Jongewaard, AZDC Consulting Jana Lynn Granillo David Sokolowski Agenda Item 1 – Call To Order Meeting called to order at 12:30 p.m. Agenda Item 2 – Public Appearances Jana Lynn Granillo introduced herself in the meeting. David Sokolowski expressed concern that Tempe is not adequately supporting state and federal efforts to increase housing supply and cited examples of local policies that may restrict development, including limitations on “missing middle” housing. They challenged claims that the City is doing everything possible to address the housing crisis, noting that other cities, such as Tucson, have taken more expansive approaches. Mr. Sokolowski also highlighted concerns about Tempe’s housing production goals, stating that meeting future apartment demand may be difficult, and suggested that state or federal intervention may be necessary to ensure all cities are contributing fairly. They emphasized that neighboring cities, particularly Scottsdale, are not providing sufficient housing options and may be relying on Tempe to absorb regional demand. Overall, Mr. Sokolowski advocated for broader state and federal action to address the housing crisis and to ensure a more equitable distribution of housing development across municipalities. Agenda Item 3 – Approval of February 20, 2026 Meeting Minutes Vice Mayor Doreen Garlid motioned to approve the Feb. 20, 2026 meeting minutes and Councilmember Keating seconded. Minutes approved. Agenda Item 4 – Municipal Priorities Presentation: Revenue and Investments Lisette Camacho, Chief Financial Officer and Deputy City Manager, opened the discussion by outlining the City’s ongoing coordination with the Arizona League of Cities and Towns. She noted that she regularly joins Jonathan Shuffield, the Government Relations Director, on these calls to provide input on policy issues that could positively or negatively impact Tempe. Robert Baer, Municipal Budget Director, shifted the focus to the City Council’s strategic priorities, specifically performance Measures 5.04 Bond Rating and 5.05 Unassigned Fund Balance. He emphasized the importance of maintaining local control, noting that cities and their residents should have a strong voice in decisions that affect them. He underscored the need for Tempe to retain authority over key revenue tools, including transaction privilege taxes, utility rates, and development impact fees, as these are essential for managing growth and sustaining service levels. He also expressed concern that increased state involvement in these areas could reduce the City’s flexibility and make long-term financial planning more difficult. Councilmember Amberg raised concerns about whether some of the policy positions were too specific, to which Robert responded that the language was intentionally broad to allow for flexibility. The conversation then turned to tax policy. Robert explained that Arizona’s flat 2.5% income tax affects the amount of state-shared revenue distributed to cities. He also noted that property tax structures can shift the burden from commercial to residential properties, ultimately impacting local taxpayers. Robert added that changes at the federal level often have downstream effects on municipal finances. He highlighted the importance of closely monitoring transaction privilege tax (TPT), particularly as it relates to online sales, given its significance as a revenue source for the City. He also emphasized the value of maintaining flexible economic development tools to support business growth and investment, which in turn strengthens Tempe’s overall tax base. Overall, the presentation reinforced a consistent theme: protecting Tempe’s financial position by maintaining strong reserves, preserving key revenue streams, and remaining cautious of policies that could introduce uncertainty or impose unfunded costs. Agenda Item 5 – Federal Priorities Presentation: Grants and Funding Don Jongewaard of AZDC Consulting, the City’s federal consultant, provided a brief overview of key focus areas, including appropriations, grants, workforce training and career readiness, and overall advocacy. He asked whether the Subcommittee wanted to further refine these priorities and offered to share six one-page summaries covering different topics. He also raised the question of how a more focused set of priorities would be tracked and communicated to residents, noting that funding opportunities can shift depending on the administration in the White House—sometimes leaning more toward operational support versus capital improvements. Councilmember Amberg suggested identifying more specific funding requests each year when the item is brought forward, and City Manager Inchausti responded that this could be discussed further at a future work study session. Jonathan Shuffield added that grants and workforce readiness could be combined into a single category, which the Subcommittee generally supported. The discussion aligned around the following priorities: supporting Community Project Funding for local projects through federal appropriations, actively pursuing federal grants to advance City priorities, and reviewing federal proposals related to workforce development and job training. Agenda Item 6 – Future Agenda Items None at this time. The next meeting will focus on Transportation and Sustainability and Information Technology. Agenda Item 7 – Meeting Adjourned This meeting adjourned at 12:57 p.m. Prepared by: Melissa Westbrook, Council Assistant, (480) 350-8635 Reviewed by: Tanya Chavez, Mayor and Council Relations Director, (480) 858-2215