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Tempe council votes to continue tax discussion, adds proposal to expand preschool

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The Tempe City Council had a long night of discussion of several proposed new changes, including changes to the city's sales tax and discussions about how to move forward.

Deputy City Manager Lisette Camacho presented tax plans to the council and claimed that failing to pass the tax would cut Tempe’s public safety services like the park ranger program and fewer police and fire personnel.

“This investment will help sustain Tempe as a community of choice where people choose to work, live and play,” Camacho said.

Tempe is calling for a total of 0.5% sales tax increase on all goods with the exception of food for home consumption.

Of the increased, 0.1% would be dedicated to transit and work to improve light rail and Orbit bus services among the projects.

The remaining 0.4% increase would fund Tempe’s safety services like police, fire and crime prevention.

Before a vote, Councilmember Randy Keating called for the tax to benefit Tempe's preschool program.

“We’re not only talking about addressing the immediate need of public safety but any future needs and the future of Tempe,” Keating said.

Tempe PRE is a sliding scale preschool program offered at several Tempe elementary schools. Applications for free or half-reduced tuition are chosen by a lottery and others pay on a sliding scale. Full price is $850 per month and it currently serves 200 children ages 3 and 4.

Greg Ruiz, interim chief of Tempe Fire, said Tempe Fire would benefit as it would be able to hire more firefighters and offer more training.

Assistant Police Chief Dane Sorenson also urged the council to send the issue to voters and explained that, “We’re bending, and we’re at the point where we’re starting to break,” he said.

Sorenson said Tempe has seen increases in all urgency calls, but response times have increased because there are fewer officers and inconsistent patrol coverage.

Camacho said if no action is taken, it could lead to fewer officers and firefighters, as well as a decrease in other services like the park ranger program.

Others asked to make cuts of administrative positions, and said that higher taxes could reduce the amount of spending with options to go to neighboring cities.

“Raising our sales tax while Chandler and Scottsdale keep theirs lower will just incentivize people to drive 10 minutes further away,” said Joe Forte, who ran for city council with a platform of reducing some city services.

Phoenix city sales tax sits at 2.8% with Chandler and Scottsdale at 1.5% and 1.7%, respectively.

Others were concerned about safety.

Lori Foster, CEO of the Downtown Tempe Authority, said the organization is concerned about businesses in Tempe’s downtown corridor, saying it could affect investments, tourism and housing.

“While we understand the difficult decisions ahead, we are asking you to hold the line on public safety,” she said.

The council also voted to combine both tax proposals into one ballot item. If it is approved it would go into effect Jan. 1, 2027.

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