Pinal County District 2 Supervisor Mike Goodman hosted a town hall meeting on May 29, 2025, to provide San Tan Valley residents with information about the upcoming August 5 incorporation vote. The meeting, held at the packed Combs Performing Arts Center, featured a panel of experts who addressed questions about the transition from county to city governance.
“This is not presented for Incorporation or against Incorporation. This is District 2, Supervisor, that’s putting on a town hall,” said Mark Lamb, former Pinal County Sheriff who served as moderator. “Hopefully, gonna bring some clarification, get some of your questions answered.”
Community Size and Significance
Population estimates for the proposed incorporation area vary significantly, reflecting challenges in obtaining accurate census data. The League of Arizona Cities and Towns based their revenue projections on a population of 100,000 for the incorporation area, while meeting discussions referenced approximately 120,000 to 130,000 people residing in the San Tan Valley area overall.
Belshe warned that obtaining certified census numbers has become increasingly difficult: “It used to be that that was something that could be done very quickly. It took about a month turnaround. Now, it may take as long as a year.” These census figures are crucial because revenue distribution depends heavily on certified population counts, and delays in certification could significantly affect initial revenue calculations and municipal budgeting.
“District 2 is the smallest district of the five districts,” Lamb explained. “District 2 is the smallest, but it is the most densely populated. The population of Pinal County is roughly 500,000 people and about 100 and… Depending on the census, I think it’s about 120,000 to 130,000 people really reside in this San Tan Valley area.”
The community’s significance extends beyond just population numbers. According to Goodman, San Tan Valley functions largely as a residential community, with economic activity concentrated elsewhere: “We’ve got 85% of our population that leaves this area to go to work in Maricopa County. And somehow we’ve gotta stop the gap.” This employment pattern underscores the community’s size and economic importance to the broader region, while highlighting the challenge of retaining local economic activity that incorporation could potentially address.
Expert Panel Overview
The meeting featured three key speakers:
Dana Lewis, Pinal County Recorder, discussed election procedures and voting timelines for the incorporation vote.
Tom Belshe, Executive Director of the League of Arizona Cities and Towns, provided expertise on municipal governance. Lamb described him as “an advocate for local governance and strategic planning” who “emphasizes the importance of data-driven decision-making.”
Steve Chucri, President and CEO of the Arizona Restaurant Association, brought business development perspective. Chucri has served as president and CEO since 2002 and previously served on the Maricopa County Board of Supervisors from 2012 until November 2021.
Transition Process and Timeline
If voters approve incorporation in August, the transition would unfold over more than a year. The County Board of Supervisors would appoint seven community members to serve as the first city council until elections in 2026.
“There’s only two things that you have to do as a city, you’re required by statute to do. And that’s road maintenance and police protection,” Belshe explained. The county would maintain services through July 1, 2026, when the new city would assume financial responsibility.
County services would continue under contract during the transition. “The county is gonna continue to provide the police service into the future. It will just be under contract instead of with the rest of the unincorporated county,” Belshe said.
Municipal Responsibilities and Services
Public Safety
Currently under county governance, San Tan Valley receives limited sheriff services. According to Lamb, recalling his time as former sheriff, “You’ve got about five that work in the San Tan Valley area. 100-plus thousand people, we got five deputies.” If the area incorporates, the new city would likely continue contracting with the sheriff’s office rather than establishing its own police department immediately. Lamb estimated that establishing an independent police department would cost “$10 to $15 million probably at minimum for your police department, I would guess,” though he acknowledged this was a rough ballpark figure. The new city would also need to pay additional costs for jail services when contracting with the sheriff’s office. Lamb explained that for misdemeanor crimes, cities pay the sheriff’s office “300-and-something dollars for the initial booking fee, and then a little over a hundred per day” to house inmates. However, Lamb explained that “All felonies are covered” by the county at no cost to the city.
For fire protection, services would likely continue through current arrangements. According to Goodman’s estimate, only about 33% of San Tan Valley residents are enrolled in Rural Metro fire service, a private subscription-based provider not contracted through the county. “Rural Metro is not contracted through the county. It’s contracted through the customer,” Lamb explained.
Goodman explained that residential areas typically generate less revenue than the cost of the municipal services they require: “It’s a buck 50 per housetop. For commercial, it’s 50 cents on the dollar… The city wants more commercial because of this very reason.” He noted that cities often rely on commercial development to offset the higher cost of providing amenities to residential neighborhoods.
Courts
If incorporation occurs, the new city could choose to establish its own municipal court system or initially partner with the county’s existing justice of the peace courts. According to Mark Lamb, some newly incorporated cities “when they first start off, will partner with the county… justice of the peace,” and may even “use the same court building, use the same judge… in an effort to save some money there as well.”
Taxes and Revenue Streams
If San Tan Valley incorporates, the presentation outlined multiple potential revenue streams for the new city:
Federal Revenues:
Community Development Block Grant (CDBG) – federal funding for community development projects, subject to federal eligibility requirements focused on low- and moderate-income benefit
State Revenues:
According to estimates by the League of Arizona Cities and Towns based on a 100,000 population assumption, Belshe provided the following preliminary projections, noting these are subject to change based on certified census data:
- Urban Revenue Sharing: $19 million annually
- State-Shared Sales Tax: $14.8 million annually
- Highway User Revenue Fund (HURF): Gas tax revenue dedicated for road maintenance, though Belshe noted this revenue likely won’t cover all roadway maintenance needs. HURF funds are restricted to transportation-related expenses.
- Vehicle License Tax: Revenue from vehicle registration fees
Belshe noted these were “the latest estimates that we, the league has done for the San Tan Incorporation,” emphasizing they were projections based on population size, as larger populations require greater municipal expenses and services.
Local Revenues:
- Transaction Privilege Tax (TPT) – commonly referred to as a sales tax, but technically a tax on the privilege of doing business in Arizona and paid by vendors, not consumers
- Property Tax
- Business/License Tax
- Franchises
- Leases and Licenses
- Development Fees
- Fines and Forfeitures
Tax Voting Requirements
For any incorporated city, both property taxes and sales taxes require voter approval before implementation. “Both forms of taxes that are available to your city are property taxes and, and sales tax. Both of those can only be put in place with a vote,” Belshe emphasized.
Belshe noted significant variation among Arizona municipalities: “Only 45 of the cities, of the 91 cities and towns, have a property tax. So about half.” This reflects that nearly half of Arizona municipalities function without a local property tax, relying instead on shared revenues and other sources.
County Property Tax Trends
Regarding property taxes, Goodman noted county reductions: “We as a county have adopted that we’ve been decreasing for the last eight years, nine years actually, the property tax.”
Codes and Comprehensive Planning
If incorporation occurs, the county’s current comprehensive plan would become the city’s general plan without immediate changes. “The comprehensive plan of the county will become your general plan of the community. There won’t be any immediate changes to your comprehensive plan unless owners of property want to seek rezoning,” Belshe explained.
Speed limits and most ordinances would remain unchanged unless the new council decides otherwise.
Development and Economic Growth
Current Projects
Goodman highlighted ongoing commercial development in the area, explaining: “We’ve got some community development that’s going on down around the Home Depot with WinCo. They have all of those spots committed already… there’s a map out there that shows all of the different companies that are gonna be going in there, the retail outlets in that particular location. It includes sit-down restaurants.” Future development areas include state land around Skyline and Ganzel roads, designated for commercial and light industrial use due to rail access.
Goodman noted significant county investment in local infrastructure, stating that “over the last probably 10 years has been well over $200 million in roads.”
Economic Leakage
Currently under county governance, San Tan Valley faces significant retail spending loss to neighboring jurisdictions. According to Goodman’s assertion, “Right now we have a retail leakage of $1.3 billion that leaves this area and goes into Maricopa County.” He noted that San Tan Valley residents are essentially helping generate tax revenue for Queen Creek and Maricopa County through their spending in those areas.
Business Attraction and Development Timeline
According to Arizona Restaurant Association data presented by Chucri, Arizona restaurants generate $23 billion annually with a daily payroll of $25 million, employing about 300,000 people statewide.
When asked about development timing, Goodman indicated that if incorporation passes, economic development would accelerate: “It’ll happen a lot faster with an incorporation.”
Chucri emphasized the importance of reliable municipal services for restaurant operations: “My restaurateurs wanna make sure though, if they have an unruly customer who drinks too much, which happens, and they have to escort that person out, that they’re gonna have law enforcement and other things to help support them, right? Or God forbid a fire breaks out in a kitchen, which we’ve had several fires the past year.”
Boundaries and Annexation Concerns
San Tan Valley is surrounded by Queen Creek, Florence, Apache Junction, and the Gila River Indian Community, which limits its ability to expand. Goodman noted that Queen Creek isn’t planning to grow beyond its current boundaries: “They’ve got their planning area and that’s what they’re sticking with right now.” However, there is still concern that nearby cities could annex valuable commercial areas if San Tan Valley doesn’t incorporate.
Lamb warned about the economic consequences of remaining unincorporated: “Without incorporation, Queen Creek will move. And they will take those, and you will pay tax on the products. You just won’t benefit from it. The benefit will go to Queen Creek or Florence. The question is, do you wanna benefit from that yourself or do you want those monies to go towards those cities?” This means that without incorporation, San Tan Valley could lose the tax revenue from valuable commercial developments to neighboring cities that successfully annex those properties.
Annexation typically occurs when property owners request it, particularly businesses seeking municipal services. “Most of the time it’s the businesses or the homeowners who ask those municipalities to be annexed,” Belshe explained, noting this occurs “90% of the time” in his experience. This process allows neighboring cities to expand their tax base by incorporating valuable commercial properties, while the remaining unincorporated areas lose those revenue sources.
Utilities and Infrastructure
Residents face ongoing challenges with EPCOR water service. One audience member reported: “Ever since Johnson Ranch sold the business to EPCOR, I’ve, I’ve always had desertscape and fake grass, and my bill has doubled ever since, EPCOR took over and nothing has changed as far as usage of our water. And just recently, we just had brown water coming out of our tap.”
Goodman acknowledged utility problems and explained that water and sewer utilities are regulated by the Arizona Corporation Commission. He noted past issues with the previous Johnson Utilities system.
If incorporation passes, “A municipality can get into the water and sewer business. And that may be something down the road that takes place,” Goodman suggested, noting counties cannot enter the utility business by law.
Quality of Life Arguments
Amenities Deficit
Goodman highlighted community amenities concerns: “We have over 7,500 kids that participate in a local sports and athletic programs right now. And again, we don’t have these parks and recreational facilities for these kids.” He noted that local high schools must travel to Queen Creek, Gilbert, and Mesa for swimming programs.
Goodman expressed his belief that San Tan Valley contains athletic talent: “I’m telling you right now, we’ve got a Mark Spitz in our presence. I believe that.”
Representation Benefits
If incorporation passes, residents would have more local representation. Goodman illustrated this with a personal anecdote about how residents currently have only one county supervisor to address their concerns: “Seven of those individuals, instead of one guy, Mike Goodman, going into Ace Hardware when we’re building Ocatillo, and my friend stands over and he says, ‘Hey, everybody. If you got problems with the roads, this is your guy.’ I was there for an hour.” With incorporation, residents would have seven city council members living in their community instead of relying on a single county supervisor to represent the entire district.
Goodman believed San Tan Valley would gain lobbying power: “That would give more strength to this East Valley, added more strength to whenever comes for lobbying for dollars to build our roads and infrastructure.”
Public Transportation
When asked about public transportation possibilities such as bus stops or metro systems following incorporation, Goodman indicated the decision would rest with local officials: “That will be up to your new city council.”
Budget Concerns and Costs
Residents expressed concerns about unknown costs and expanding government. When asked about budget growth in other incorporated cities, Belshe acknowledged uncertainty: “You are gonna have expenses… Is the money you’re bringing in gonna cover those expenses? Until you have a budget put in place, there’s nobody that can tell you one way or the other. .. but there have been 91 cities and towns that have figured it out as well.”
He noted that costs typically grow with population: “Costs are really driven by population growth… when you have more people, what are the two things that you can think of right away that are gonna be affected? The amount of police service that you have to provide and the amount of roadways that you’re gonna have to maintain.”
Voting Information
The incorporation election will occur August 5, 2025. Pinal County Recorder Dana Lewis stated that early voting begins July 9 at three locations: the Apache Junction location, the San Tan Valley location over by the CAC, and the Pinal Votes location in the center of Florence.
Only registered voters within the proposed incorporation boundaries can vote. Snowbird residents can request early ballots be sent to their temporary addresses, according to Lewis.
For more information on voting, see the county website.
August Decision
Regardless of the outcome, the path forward will require sustained civic engagement to address growth and infrastructure demands.
“Growth can be painful,” Chucri acknowledged, emphasizing the importance of community input in the decision-making process.
The August vote will determine whether San Tan Valley residents choose to remain under county governance or begin the complex transition to cityhood—an outcome that would reshape the region’s future responsibilities, services, and local representation.
The map is a bit difficult to read, thus, the Answers to my questions may be otherwise be obvious.
Is Walmart and that area of businesses included in the new San Tan Valley incorporated? Is Solero gated community within in the STV ?
What is the anicipated time frame to elect city Council members and a Mayor? Having served on a member of County Planning commission (Alabama) with over 300,000 citizens, I concur that the attraction of Reputable businesses is foundational to all other considerations and strong Municipal Plan will determine whether or not the City’s Growth encouages smart growth. Thank you.