Mesa City Council Study Session and Eastmark CFD Board Meetings - May 21, 2026

The Mesa City Council held a study session on May 21, 2026, preceded by separate board meetings for Eastmark Community Facilities District (CFD) No. 1 and CFD No. 2. The council heard presentations on the public safety pension system (PSPRS), the proposed secondary property tax levy, and the Off the Streets homeless shelter program, ultimately voting to continue the program at the Windermere Hotel after extensive debate.

Consent Calendar

• Eastmark CFD No. 1 Board: Unanimously approved prior minutes and held a public hearing on the proposed budget and tax levy, then unanimously adopted resolutions for the final budget and tax levy.
• Eastmark CFD No. 2 Board: Unanimously approved prior minutes and, after a public hearing with no speakers, unanimously adopted the final budget and tax levy resolutions.
• Council Study Session: Unanimously acknowledged receipt of minutes from various boards and committees.

Public Comments & Testimony

• David Winstanley (Eastmark CFD No. 1 resident): Spoke in favor of the CFD's resolution but asked the council to consider the additional tax burden on Eastmark residents. He noted the average tax increase of $591 (his was $900), and contrasted the self-funded Eastmark Great Park with the city-funded Red Mountain Park. He thanked staff for reducing the O&M rate. Councilmember Duff opposed including HOA/master-planned community costs in city comparisons, noting these costs are disclosed at purchase. Board members noted this was the fourth consecutive year of tax rate reduction.

Discussion Items

• PSPRS Pension Funding Policy (Item 6P on June 1st agenda): Sam Schultz, Assistant Budget Director, presented the annual update. The city’s unfunded liability decreased by $60 million due to additional contributions and investment gains. The city remains on track to reach 100% funded status by June 30, 2042, under a 25-year amortization plan. A $20 million pension stabilization fund has been set aside. The council will be asked to adopt the funding policy at the June 1st meeting. Councilmembers praised staff’s conservative management and noted the long-term strategy avoids pension obligation bonds.
• Secondary Property Tax Levy (Special Council Meeting June 1st): City Treasurer Mark Hute presented the proposed levy for FY 2026-27. The tax rate is proposed to decrease by 1% to $0.85 per $100 of limited property value, generating a levy of $46.4 million. Mesa’s total taxable property value rose to $5.5 billion. The median homeowner would pay $166 annually. Councilmember Taylor explained the benefit of using utility transfers instead of a primary property tax, as it spreads costs to tax-exempt entities (government, churches, schools). The council will hold a public hearing and adopt the levy in July.
• Off the Streets Program (Item 2A): Deputy City Manager Candace Canistrao, along with Lindsay Belinke and Josani Goodman, presented an update. The program currently operates 65 rooms at the Windermere Hotel, serving families, seniors, and domestic violence survivors. Over the past 12 months, 235 children, 100 seniors, and 202 survivors were served; 109 individuals are on the waitlist. Staff sought direction on funding and location. They identified federal funds (HOME-ARP and ARPA interest) that can fully cover the program’s $2.5M annual cost for three years without local sales tax. A Request for Information to nonprofits for takeover received only one response, which requested $2.5M in city support. The city-owned Sun Air property (64 rooms, 158 beds) is ready with a certificate of occupancy and a preferred provider (Mercy House) under a notice of intent to award. The Windermere option costs the same annually but provides 111 beds. Councilmember Duff strongly advocated for Sun Air, citing the $14M investment and greater capacity. Councilmembers Taylor and Adams opposed the program expansion and favored discontinuing or limiting it. Councilmember Heredia and Vice Mayor supported continuing the program. Police Lt. Dennis Thomas confirmed the program gives officers an alternative to enforcement.

Key Outcomes

• Off the Streets Program – Continuation: Council voted 4-2 to continue the program (Duff, Heredia, Vice Mayor, and Mayor in favor; Taylor and Adams opposed).
• Off the Streets Program – Location: After a 2-2 split on Sun Air vs. Windermere (Duff and Heredia for Sun Air; Taylor and Adams for Windermere), the Mayor directed continuation at the Windermere Hotel. Staff will maintain the Sun Air property (secure and activate) while awaiting U.S. Treasury guidance on allowable uses of ARPA funds.
• Pension Policy and Secondary Tax Levy: These items will proceed to a public hearing and final adoption at the June 1st regular council meeting and July 20th special meeting, respectively.
• Flood Control IGA (Item 6A): Staff confirmed the intergovernmental agreement with Maricopa County Flood Control District allows the city to draw $500,000 in grant funds for the Baseline Road drainage project, which is already underway. The work primarily occurs north of the road; traffic impacts will be minimized.
• Next Steps: A strategic planning session follow-up is scheduled for May 28, 2026 at the Gateway Library.