During a city council meeting this week, Mayor John Giles and the Mesa City Council voted to approve across-the-board increases in the city’s utility rates and fees covering solid waste removal, electricity, gas, water, and wastewater. Over two-dozen Mesa citizens spoke during the meeting, which stretched over two-hours. Mesa, lacking a primary property tax, derives much of its funding from utility rates and fees.
The city is facing increases in electric rates of up to 39% for Winter Tier 2 usage charges for residents and a $2.75 per month service charge increase according to the council report. Non-residential users will face increases from 2-6 percent. Solid waste residential barrel rates will increase 5.5%, with commercial roll-off rates jumping 6.5%. Gas rates are increasing 6-15% for residences and from 9-25% for non-residential users. Water rates are increasing 4-9% for residents, 5.5% for non-residential, 8.5% for commercial users, and 19.5% for large commercial or industrial users. Finally wastewater service and usage components charges will increase by 7.5% for residents and 8.5% for non-residential.
City staffers told The Mesa Tribune that the typical residential bill for water, wastewater, and solid waste will see an increase of about $5.60, from the current average of $100.21 to $105.81
As reported by the Tribune, Giles answered criticism at a meeting in late November telling the frustrated residents, “This proposed water-rate increase of less than 5% in Mesa is dramatically less than you see in every other community,” said Giles, zeroing in on the water utility increase.
“Cities around the Valley are increasing water 25%, talking about increasing wastewater charges 95%. We’re not doing anything remotely like that in the City of Mesa.“
“So if you’re upset about the increasing price of water, I’m with you. But if you want to vent those feelings, probably every other city council in the state would be a more appropriate place to do that because the increases are less than what you’re seeing in other cities.”
Kevin Medema, a Mesa resident who led the organization of a petition opposing the utility increases reportedly signed by 2,000 people, stressed, “We have citizens that are hurting financially. The city shoots for that 20% reserve (in the utility accounts). Well, you know a lot of residents won’t have that in themselves. So, please consider voting ‘no.’’’
Medema suggested that residents have offered to help the city find ways to reduce spending.
During the November 18th meeting, one Mesa resident, Lynda Patrick-Hayes poignantly called upon the council to “entertain the idea of cutting the utility rates and encourage the city manager to eliminate government waste. The City of Mesa has no revenue problems. It has a spending problem.”
Citing the city’s reliance on utility charges and sales tax due to lacking a property tax, Giles told the citizens, “There’s not an apples-to-apples comparison because the City of Mesa has a different model. We’re going to use utilities to help subsidize city services.”
Multiple attempts to reinstate a primary property tax, eliminated in 1945, have failed over the years.
“Now if you don’t like that model…the answer is not to come to the City of Mesa and say, ‘We don’t want you to raise utilities because that’s denying the reality of math.’”
Responding to calls to reduce city spending, Giles told the gathered objectors, “What your proposal is, you’re saying, ‘I want to dramatically cut spending on public safety in the City of Mesa.’ That’s what you’re asking us to do.”
Republican State Representative Barbara Parker spoke on behalf of her constituents in the area and told the council, “They call me when they lose their homes. They call the state when they can’t afford their insurance. And on behalf of them, I am telling you they are hurting and even one dollar makes a huge difference.”
Parker castigated the mayor and council for suggesting the city cut public safety spending, “The fact that we use the threat of fear and emotion that we are going to cut police and fire is so disingenuous and inappropriate. And to all the gentlemen and women in uniform tonight: I am one of you and I have trained many of the firefighters, and I want you to know we have your backs. And we need to elect people who will fund you first and then find funding for everything else. We are never going to cut funding to police and fire. That is always a tactic. It’s disingenuous, it is inappropriate, it lacks accountability, it is intellectually dishonest, and they are not pawns and you deserve better. Don’t let them use you as a pawn police and fire. It’s inappropriate to have a bond and then immediately after that election to suddenly have a tax increase or a rate payers increase.”
She concluded, “One of the things I was able to communicate to the legislature as a member of the Appropriations Committee is that: EVERY. SINGLE. DOLLAR. IS. SACRED. Every single penny is sacred. And when I’ve asked the citizens would they rather have one more penny in their pocket than have it go to waste or redundancies or excesses. Absolutely they say yes. I hope you’ll have the courage to do the right thing tonight. I can tell you on behalf of the state: we were able to cut budget, balance our budget, give money back to the taxpayers and fund every single program. And if the state of Arizona can do it, Mesa can do it better.”
The rate increases were passed by the city council unanimously with Giles stating, “I know all of that is not appreciated by this crowd to the extent that we’d like it to be, but it’s the facts. For those reasons I am compelled by math and the reality of the situation to support this increase.”
Arizona utilities providers recently revealed plans to partner with an emerging energy market.
Earlier this week, representatives from Arizona Public Service (APS), Salt River Project (SRP), Tucson Electric Power (TEP), and UniSource Energy Services made news by announcing that their utility companies would be joining Southwest Power Pool’s (SPP) Markets+. The partnership would take place starting in 2027 if the fledgling market receives the final green light from the Federal Energy Regulatory Commission (FERC).
According to the release issued by the state energy providers, an energy market “is an interconnected network of electricity providers that help meet the supply and demand of power across a specific geography and include transmission pathways for electricity to travel from one location to another.” For example, “When demand is lower, the Arizona utilities can sell energy, like excess solar power during the winter season, to maintain a balanced electric system, while also taking advantage of cost-savings opportunities.”
The Arizona utilities promise “increased reliability, greater cost savings, [and] more clean energy” for state customers after the partnership would take effect. It is projected that this market would save approximately $100 million from the status quo, which would be, in part, realized by the energy customers of the participating companies.
“Arizona is one of the fastest growing states in the country and we are thoughtfully planning for the future and evolving our operations to continue to provide top-tier service and reliability to our customers at an affordable cost,” said Brian Cole, APS Vice President of Resource Management. “Together with our neighboring utilities, APS plans to join Markets+ to efficiently deliver energy and bolster the resilience of our shared energy grid in Arizona and across the region.”
“SRP’s participation in SPP Markets+ is a key component of our plan to meet the growing energy needs of our customers reliably and affordably and will help us achieve our 2035 Sustainability Goals,” said Josh Robertson, SRP Director of Energy Market Strategy. “We look forward to working with utilities in the region to bring the cost and resilience benefits to our respective customers.”
“Tucson Electric Power and UniSource Energy Services are excited about the value that Markets+ can provide to our customers, including cost savings and greater access to clean energy and other resources that support affordable, reliable service,” said Erik Bakken, TEP Senior Vice President. “We look forward to strengthening an already collaborative, productive relationship with Southwest Power Pool, our reliability coordinator, in its new role as market operator.”
Daniel Stefanski is a reporter for AZ Free News. You can send him news tips using this link.
The National Retail Federation (NRF) and Prosper Insights & Analytics have released a new survey indicating the hottest selling toys and gifts for the holiday season.
In a press release, NRF Vice President of Industry and Consumer Insights Katherine Cullen introduced the survey saying, “The holiday season is in full swing and while many consumers have made progress on their shopping lists, most shoppers will make the majority of their purchases over the coming weeks. Whether shoppers are looking to spread out their purchases or seeking the best deals, retailers are ready to help consumers with all their shopping needs this holiday.”
According to the survey, the NRF forecasts that 2024 holiday spending will increase by approximately 2.5-3.5% and total between $979.5 billion and $989 billion.
In the category of toys, the survey found real-world toys like Legos, Hot Wheels, and other toy cars reigning supreme over video games and video game consoles for boys. For girls, it found Barbie and other dolls standing tall with Legos, followed by cosmetics and beauty products.
For adults, the survey found that the top five gift-giving categories will be clothing (54%), gift cards (44%), toys (36%), books, video games, movies, series and other media (31%), as well as food and candy (30%).
For gift cards, the most popular are those for restaurants at 30%, department stores at 25%, bank-issued gift cards at 25%, and coffee shop gift cards at 22%.
Prosper Insights & Analytics Executive Vice President of Strategy Phil Rist explained that most shoppers will find their gift inspirations online. He said, “Younger shoppers continue to embrace social media for gift ideas, with those between the ages of 18-24 more likely to find inspiration through platforms such as TikTok (28%) and Instagram (27%). These shoppers are also more likely than any other age group to purchase jewelry, with 30% planning to gift these items.”
Thanksgiving dinner will cost less than it did last year, but it will still be harder on your wallet than before President Joe Biden took office.
Per the Farm Bureau’s annual analysis of Thanksgiving dinner staple costs, the price reduction of nearly five percent from last year is “moderate” and not near enough to undo the “dramatic increase” that occurred two years ago.
A Thanksgiving meal still costs 20 percent more than it did in 2019: about $58 for a feast for 10 this year. Last year, the same meal size cost about $61, and in 2022, it cost about $64.
This annual Thanksgiving dinner survey relies on shoppers across 50 states and Puerto Rico to survey their local grocery store’s prices for classic feast items: turkey, stuffing, sweet potatoes, dinner rolls, peas, cranberries, celery, carrots, pumpkin pie ingredients, whipping cream, and milk.
The “moderate” price reduction only occurred with some of these classic holiday foods — others rose in price. Costs were lower for turkey, sweet potatoes, peas, carrots and celery, pumpkin pie mix, pie crusts, and milk, but costs were higher for dinner rolls, cranberries, whipping cream, and stuffing.
The reason for prices of certain items going up while others have gone down has to do with the type of item. Increases occurred mainly in processed products due to nonfood inflation and labor shortages driving up costs for partners across the food supply chain. An exception occurred for fresh cranberries, but the 12 percent price increase is considered a stabilization of pricing after an 18 percent decline from 2022 to 2023. The Farm Bureau noted that, even with the price increase and adjusting for inflation, fresh cranberries have their lowest cost since 1987.
The average costs are as follows: $25.67 for a 16-pound turkey, $2.35 for 12 ounces of fresh cranberries, $2.93 for three pounds of sweet potatoes, 84 cents for half-pound of carrots and celery, $1.73 for 16 ounces of green peas, $3.40 for two nine-inch pie shells, $4.08 for 14 ounces of cube stuffing, $4.16 for one pack of dinner rolls, $4.15 for 30 ounces of pumpkin pie mix, $3.21 for one gallon of whole milk, and $1.81 for one-half pint of whipping cream.
The Farm Bureau also reported significant cost disparities based on region. Those in the Western states face at least 14 percent higher costs for a Thanksgiving dinner for 10, or $67. Comparatively, those in the Southern states have the lowest cost: $56 for a party of 10. The Northeastern states will have an average cost of $57, and the Midwestern states will have an average cost of nearly $59.
Those price disparities grow much more when adding less-traditional Thanksgiving favorites: ham, Russet potatoes, and green beans. Southerners, Northeasterners, and Midwesterners would only pay anywhere from $81 to $83 to add those favorites to their dinners. However, Westerners would have to pay over $93 for the same spread.
Farmers take the biggest brunt of inflation, experiencing lower and more volatile prices. The USDA projects that national net farm income will fall by $6.5 billion this year.
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The massive microchip manufacturing firm, the Taiwan Semiconductor Manufacturing Company (TSMC), finds itself facing a class-action lawsuit brought by over a dozen of its current and former employees. TSMC was brought into Arizona through the Biden administration’s CHIPS Act.
The charge presented is a potentially devastating one: that TSMC is engaging in “anti-American” hiring and workplace bias and is discriminating against American workers while favoring Taiwanese nationals imported on work visas. For a firm that is now deeply tied to the political fortunes of the outgoing Democratic administration, and the now-minority party in Congress, the allegations are stunning.
The lawsuit makes the claim that TSMC employs over 2,668 workers in its North American operations and that the vast majority of them are Asian, stating, “This grossly disproportionate workforce is the result of TSMC’s intentional pattern and practice of employment discrimination against individuals who are not Asian and not Taiwanese citizens, including discrimination in hiring, staffing, and termination decisions.”
NOW in Arizona: @POTUS said he "owes an awful lot" to Taiwan Semiconductor Manufacturing Company because founder Morris Chang's wife, Sophie, worked Biden's first Senate campaign. Perhaps that's why Biden told @pdoocy today that the border isn't important. Scratching backs! pic.twitter.com/wFFYncZIMV
In the text of the suit, attorneys representing the workers note, “TSMC’s bias in favor of Asians and Taiwanese citizens was even apparent when it was hiring construction workers to build its first Arizona fab (via TSMC affiliates United Integrated Services (UIS) and Marketech International Corp.). TSMC chairman Mark Liu complained of “an insufficient amount of skilled workers” to build the facility and planned to fly workers in from Taiwan. TSMC agreed to focus on local hiring for those positions only after massive and public outcry from Arizona labor unions.”
The incident referenced was covered by AZ Free News in July 2023 when Liu made the complaint coinciding with President Joe Biden’s first visit to Arizona to tour the facility. Biden told reporters at the time that he “owes an awful lot” to TSMC with Corrinne Murdock observing that founder Morris Chang’s wife worked on his first Senate campaign.
NOW in Arizona: @POTUS said he "owes an awful lot" to Taiwan Semiconductor Manufacturing Company because founder Morris Chang's wife, Sophie, worked Biden's first Senate campaign. Perhaps that's why Biden told @pdoocy today that the border isn't important. Scratching backs! pic.twitter.com/wFFYncZIMV
Phoenix Mayor Kate Gallego also reportedly holds ties to TSMC with a former senior policy advisor and campaign donor, Laura Franco French, serving as TSMC’s director of state government relation. French took the role directly following her tenure with Gallego’s office.
At the time, Liu told reporters, “We are encountering certain challenges, as there is an insufficient amount of skilled workers with the specialized expertise required for equipment installation in a semiconductor-grade facility.”
“While we are working to improve the situation, including sending experienced technicians from Taiwan to train the local skilled workers for a short period of time, we expect the production schedule of N4 process technology to be pushed out to 2025.”
The suit notes that TSMC applied for and received a $6.6 billion grant from the Federal Government via the CHIPS Act predicated on a diverse hiring policy and claims the firm “willfully disregarded diversity commitments TSMC made in the CHIPS Act,” adding that approximately half of TSMC’s Arizona work force of 2,200 people are Taiwan nationals on work visas.
Daniel Kotchen, one of the attorneys representing the plaintiffs, told AZFamily, “If you are receiving federal funding to create jobs in the U.S., it is your responsibility to live up to the rules and laws under the U.S.”
Deborah Howington, a current talent acquisition executive at TSMC, was the first plaintiff claimed to have witnessed the culture of illegal, discriminatory practices that favored Taiwanese candidates and employees first-hand. As reported by Forbes, Howington alleges in the suit that TSMC specifically sought candidates from Taiwan for jobs in the U.S. and confidentially employed an “Asian headhunter,” to attract these recruits.
A company spokesperson responding to questions on the lawsuit told Forbes, “TSMC believes strongly in the value of a diverse workforce and we hire and promote without regard to gender, religion, race, nationality, or political affiliation because we respect differences, and believe that equal employment opportunities strengthen our competitiveness.”
The City of Glendale’s Proposition 499, the “Hotel and Event Center Minimum Wage and Wage Protection Act,” was soundly defeated on Election Day. The defeat was a rebuke to Worker Power, a California special interest group seeking “economic justice and the preservation of democracy.” Prop 499 was met with staunch opposition in Glendale from the coalition “Save Glendale Jobs,” funded by hospitality industry leaders and supported by three Glendale Councilmembers Lauren Tolmachoff, Joyce Clark, and Vice Mayor Ian Hugh.
The ballot measure would have mandated “hotel and event center workers receive a $20.00 per hour minimum wage (increases annually), service charge payments and premium pay to be enforced by a newly created city department of labor responsible for investigating employer violations involving payment of wages, reporting, recordkeeping, and overtime requirements.”
Hotel developer Chris DeRose, president of CivicGroup LLC, a firm seeking to bring a LivSmart by Hilton Hotel to downtown Glendale, was joined on a conference call prior to the vote by Clark, Hughe, Tolmachoff and Councilmember-elect Dianna Guzman. DeRose explained the serious problems that the proposition would cause for the burgeoning West Valley City, deep in an extended project of downtown revitalization as well as business owners.
“We’re in the process of taking that out to capital. Then we get a proposition that gets ballot access that threatens to upend all of our economic modeling and throw uncertainty into the whole project,” DeRose explained.
“Unfortunately, that’s frozen us in our tracks because whether you’re talking to a bank or you’re talking to investors, they want to know, ‘Hey, what’s the labor cost here?’ For a hotel, your number 1 expense, especially in a limited-service model where you don’t have F&B, it’s salary for staff. And so, this proposition has created uncertainty, and we’re not able to answer those very basic questions right now. And as a result, we’re not able to move the project forward.”
He added that the proposition appeared to be a “Trojan horse.”
“What’s really unusual about this, it’s a minimum wage that’s really – it’s a proposition that is disguised as a minimum wage. The minimum wage part is the Trojan horse.”
“The problem is that there’s actually a cap on productivity and that is unprecedented. I don’t know of another jurisdiction in America where you have a cap on productivity and in this case it’s 3,500 square feet, which is about 10 hotel rooms.”
Councilmember Clark noted the serious impact the proposal could have had on Glendale’s competitiveness in attracting businesses saying, “I think it’s important to note that Glendale will be the only city in the state to mandate $20 an hour. And overtime, it’s more than that. It’s $40 an hour, which people are not paying attention to. It puts Glendale at a competitive disadvantage with every city in the state and the Common Sense Institute says that it may cost Glendale anywhere from a million dollars on up annually just to regulate this and in lost revenue from other projects that may have considered locating in Glendale.”
Councilmember Tolmachoff expressed concerns about navigating the regulatory mandate the city would be required to assume saying, “To put the city in a position to be a regulatory authority and to have to intervene and interact between a civil disagreement between an employee and an employer is absolutely no place for a city to be.”
Save Glendale Jobs Chair Kim Grace Sabow said in a statement after the proposition’s defeat:
“I extend my sincere appreciation to Glendale voters, who chose to preserve and protect the jobs our industry creates. I want to thank the many supporters of our effort, without whom this result would not have been possible, including key business leaders, elected officials, and law enforcement. I also want to thank our dedicated campaign team, which expertly managed every aspect of this campaign, and our volunteers, who spread the word across the city about how damaging this measure would be. Together, we formed a mighty coalition.
“I am thrilled for Glendale, which I am certain will not only continue to grow and create more outstanding destinations, attractions, and experiences for visitors but will also continue to deliver more great jobs and career opportunities for Glendale residents.”
According to Maricopa County Elections, the proposition was defeated by 15.32 pts., or approximately 10,338 votes as of this report.
