On the agenda: Eloy, AZ City Council Meeting — automated license plate (Aug 24)

PUBLIC NOTICE
THE ELOY CITY COUNCIL
Meets
MONDAY, AUGUST 24, 2026
6:00 PM
ELOY CITY COUNCIL CHAMBERS
595 NORTH C STREET
ELOY, ARIZONA 85131
For a
REGULAR MEETING

AGENDA
I.

Call to Order

II.

Roll Call

III.

Moment of Silence

IV.

Pledge of Allegiance

V.

Public Appearances
Those wishing to ADDRESS THE CITY COUNCIL may do so by signing in on a form
provided by the City Clerk, identifying the topic(s) or agenda item(s). ACTION taken as a result
of public comment regarding non agenda items will be limited to directing staff to study the
matter or rescheduling the matter for further consideration and decision at a later date.
SPEAKERS SHALL BE LIMITED TO THREE (3) MINUTES.

A. Scheduled
B. Unscheduled
VI.

Reports and Announcements
A. Mayor's Announcements
B. Council Members' Announcements
C. City Manager's Announcements

VII.

Consent Agenda
A.

Approval of Minutes — August 10, 2026, Regular
Council Meeting

Michelle Hall

B.

A Resolution of the Mayor and Eloy City Council
Correcting Scrivener's Error in Resolution No. 251616 regarding a Notice to Increase Rates and

Michelle Hall

Charges of the Wastewater System for the City of
Eloy, and Renumbering said Resolution as
Resolution No. 25-1616.1
C.

A Resolution of the Mayor and Eloy City Council
Correcting Scrivener's Error in Resolution No. 251617 regarding a Notice of Intention to Increase
Rates and Charges of the Potable Water System for
the City of Eloy and Renumbering said resolution as
Resolution No. 25-1617.1

Michelle Hall

D.

A Resolution of the Mayor and Eloy City Council
Correcting Scrivener's Error in Resolution No. 251621 regarding an Application for Proposition 202
Grant Funds for Purchasing one (1)
SCBA/Equipment Washer for the Eloy Fire District
and Renumbering said resolution as Resolution
No.25-1621.1

Michelle Hall

E.

A Resolution of the Mayor and Eloy County
Council Correcting the scrivener's error in resolution
no. 25-1631 regarding an Application for a
Conditional Use Permit to allow outdoor storage on
the properties located at 4650 and 4712 N.
Tumbleweed Road, Eloy, Arizona, case no. cup
2025-005, Desert Septic, and renumbering said
resolution as resolution no. 25-1631.1

Michelle Hall

F.

An Ordinance 26-1005 of the Mayor and City
Council of the City of Eloy, Pinal County, Arizona,
Adding Section 12-2(D) to the Eloy City Code
Authorizing the City Attorney and City Clerk to
Correct Scrivener's Errors in the City Code,
Ordinances, Resolutions, and Minutes Adopted by
the City Council or Other Public Body; Repealing
Conflicting Provisions, and Setting an Effective
Date.

Michelle Hall

VIII. Business: Possible Discussion and/or Action on the Following:
A.

Annette Gaston, from PFM Asset Management,
LLC, will make a presentation on the City's
investment portfolio as of June 30, 2026.

Brian Wright

IX.

Executive Session
Possible executive session for discussion/consultation for legal advice with the city
attorney and/or city staff concerning any of the agenda items, pursuant to A.R.S. §38431.03 (A) (3) and (4).

X.

Adjournment

POSTED BY 8:30 AM ON AUGUST 21, 2026 AT ELOY CITY HALL, ELOY POST
OFFICE, AND CITY WEBSITE: www.eloyaz.gov
THE FACILITY WILL BE OPEN TO THE PUBLIC 30 MINUTES PRIOR TO THE
START OF THE MEETING AND SEATING WILL BE AVAILABLE FOR
“REASONABLY ANTICIPATED ATTENDANCE.”

INDIVIDUALS WITH SPECIAL ACCESSIBILITY NEEDS MAY CONTACT MICHELLE HALL, ADA
COORDINATOR FOR THE CITY OF ELOY AT 520-466-9201 OR 520-466-7455 (TDD). IF POSSIBLE, SUCH
REQUESTS SHOULD BE MADE 72 HOURS IN ADVANCE. ONE OR MORE MEMBERS OF THE COUNCIL
AND/OR STAFF MAY PARTICIPATE BY TELEPHONIC OR VIDEO MEANS.

CITY OF ELOY
REQUEST FOR COUNCIL ACTION
Agenda Item: V.A.
Date: 8/24/2026
Date submitted:
01/16/2026

Action: Other

Date requested:
8/24/2026

TO:

Mayor and City Council

FROM:
RECOMMENDATION:
DISCUSSION:
FISCAL IMPACT:
Approved as to Form:

Stephen R. Cooper, City Attorney

Subject: Scheduled

CITY OF ELOY
REQUEST FOR COUNCIL ACTION
Agenda Item: V.B.
Date: 8/24/2026
Date submitted:
01/16/2026

Action: Other

Date requested:
8/24/2026

TO:

Mayor and City Council

FROM:
RECOMMENDATION:
DISCUSSION:
FISCAL IMPACT:
Approved as to Form:

Stephen R. Cooper, City Attorney

Subject: Unscheduled

CITY OF ELOY
REQUEST FOR COUNCIL ACTION
Agenda Item: VII.A.
Date: 8/24/2026
Date submitted:
01/16/2026

Action: Formal

Date requested:
8/24/2026

TO:

Mayor and City Council

FROM:
RECOMMENDATION:
DISCUSSION:
FISCAL IMPACT:
Approved as to Form:

Stephen R. Cooper, City Attorney

Subject: Approval of Minutes —
August 10, 2026, Regular Council
Meeting

CITY OF ELOY
MINUTES
CITY COUNCIL REGULAR MEETING
MONDAY, AUGUST 10, 2026
6:00 PM
ELOY CITY COUNCIL CHAMBERS,
595 NORTH C STREET, ELOY, ARIZONA 85131

I. Call to Order
Mayor Sutton called the meeting to order at 6:00 pm.
II. Roll Call
Present:
Andrew Sutton, Mayor
Michelle Tarango, Vice-Mayor
Sara Curtis, Councilmember
JoAnne Galindo, Councilmember
Jose Garcia, Councilmember
Dan Snyder, Councilmember
Michael Vodrazka, Councilmember
Staff Present:
Mackenzie Letcher, City Manager
Stephen Cooper, City Attorney
Michelle Hall, Interim City Clerk
III. Moment of Silence
Mayor Sutton called for a moment of silence.
IV. Pledge of Allegiance
The Pledge of Allegiance was led by Councilmember Snyder.
V. Public Appearances
A. Scheduled: None
B. Unscheduled:

Ann Howard, a resident of the Wilson Ranch area, addressed the Council regarding
automated license plate reader cameras ("Flock cameras") in the city and Pinal County. She
urged the Council to be aware of the ongoing online discussion about the technology.
Council thanked Ms. Howard for her comments.
VI. Reports and Announcements
A. Mayor's Announcements:
Mayor Sutton reported on the following:
Thanked all candidates who ran in the July 21 Primary Election and congratulated those
elected, including Vice-Mayor Tarango and Councilmember Garcia.
On July 16, met at City Hall with City Manager Letcher, city staff, and representatives from
the offices of Senator Mark Kelly and Senator Ruben Gallego.
On July 22, toured the Kitt Solar site with Councilmember Vodrazka and CouncilmemberElect Dunfee noting the project is in the final stages of testing.
On August 6, attended the Pinal Alliance Forum at Robson Ranch focused on education and
workforce readiness, with emphasis on third-grade reading programs; expressed
disappointment that no Eloy education representatives attended and stated he would follow
up on whether an invitation was sent.
Attended the Eloy Chamber mixer at the old clubhouse.
Attended the Pinal Partners Breakfast in Casa Grande on energy, where it was reported that
APS and SRP each experienced record peak deliveries of more than nine gigawatts.
Welcomed Congressman Juan Ciscomani to Eloy City Hall, noting he has helped secure
more than $1 million in funding for Eloy and is working to secure an additional $6 million
for improvements and repaving along Frontier Street.
B. Council Members' Announcements:
Councilmembers provided brief updates on community events, recognitions, and project
involvement:
Councilmember Vodrazka commented on the Pinal Alliance Forum, noting the need to
accelerate development of facilities to support future energy needs.
Councilmember Galindo reminded the community of the Eloy Fiestas Patrias hosted by
Corazon de Latinos Unidos on September 11 and 12, which typically draws 2,500 to 3,000
visitors, and invited parade entries.
Councilmember Garcia noted this is the 75th year of the Eloy Fiestas Patrias, which began
in 1951 and spans three generations.
Councilmember Garcia reported attending the food truck meeting and the chamber mixer at
the new Hideout event center.
C. City Manager's Announcements:

City Manager Letcher announced:
The successful sale on July 9, 2026, of approximately $22 million in utility revenue bonds
to fund water, sewer, and capital infrastructure improvements.
Questionnaire No. 3 for the Eloy Air Park Area Plan (airport master plan) is live online
through August 21, 2026.
Introduced two new Management Analysts: Abraham Macy (strategic planning,
communications, and the Ask Eloy program) and Erick Lemos (economic development).
Both addressed the Council and answered questions.
1. Ask Eloy Presentation:
Management Analyst Abraham Macy presented Ask Eloy, a new single-email system
([email protected]) for resident questions, comments, and concerns. Inquiries are logged,
classified, and routed to designated department liaisons with identified backups. Since
launch, nine inquiries have been logged; 100% were answered within the two-business-day
target and eight of nine were answered the same day. Examples included faded roadway
striping, early-morning aircraft noise (FAA jurisdiction), and zoning setback confirmation.
Council discussion included follow-up and tracking procedures, backup staffing, telephone
versus email responses, and a suggestion to incorporate a resident satisfaction survey, which
staff agreed to review. Council expressed strong support for the program.
2. Police Chief Sergio Banales Council Briefing:
Police Chief Sergio Banales presented a video message from Pinal County Attorney Brad
Miller reporting that, when prison-related incidents are separated from community-based
offenses, criminal cases filed from Eloy declined nearly 25% over three years, from 246
cases in 2023 to 185 cases in 2025. Chief Banales reported on department initiatives,
including a new Support Services Supervisor, Operations Sergeant, and Personnel and
Training Corporal; a formal department training plan; monthly management meetings; a
three-year strategic plan; succession planning; implementation of Lexipol policy
management; upgraded Axon body cameras with AI-assisted report writing; an employee
wellness program; and expanded community engagement programs (Coffee with a Cop,
Cops and Clergy, Adopt-a-School, National Night Out, Christmas with a Cop, and Red
Ribbon Week). Councilmembers praised the department's community policing efforts and
shared personal accounts of positive interactions with officers and staff.
3. Quarterly Financial Report for the Period Ending June 30, 2026:
Finance Director Brian Wright presented the preliminary quarterly financial report for
the period ending June 30, 2026. Highlights included:
The General Fund ended the fiscal year with an approximately $9.3 million negative
variance, as expected, due to transfers to other funds for capital projects; excluding those
transfers, the General Fund ended approximately $5.4 million positive.

Local sales tax collections totaled approximately $11.1 million, approximately $1.5 million
above budget, driven largely by construction sales tax ($1.4 million in the fourth quarter
compared to $329,000 in the same quarter of the prior year).
Manufacturing tax collections were up approximately 40%, wholesale up approximately
31%, and utilities/communications up approximately 14%.
State shared revenue decreased by approximately $340,000, as anticipated.
Water, wastewater, and sanitation funds ended the year with positive operating variances.
All departments operated within their adopted budget authority; several capital projects will
roll over to fiscal year 2026-2027.
Councilmember Snyder requested additional information on the composition of the
manufacturing tax category and the construction projects driving the increase; Director
Wright agreed to provide category information to Council through the City Manager.
VII. Consent Agenda
Mayor Sutton asked if any items were to be removed for discussion. No items were pulled.
A. Approval of Minutes -July 13, 2026, Regular Council Meeting.
B. Consideration of approving the transfer of surplus law enforcement motorcycle to the
Arizona Governor's Office of Highway Safety.
C. Approve the Annual Development Impact Fee Report for the City of Eloy ending June
30, 2026.
D. Request for approval of Case No. MSCP2026-001 Maverik, a Master Sign Program and
Comprehensive Sign Package to be used on an approximately 4.25-acre site zoned General
Commercial (C-2) Planned Area Development Overlay, located at 1120 South Sunshine
Boulevard.
E. Approval to Utilize Sourcewell Contract No. 101221-SCA with Sewer Equipment Co. of
America for the Purchase of a Western Star 47X Chassis and Truck-Mounted Combination
Sewer Cleaner for an Amount Not to Exceed $750,000. This equipment purchase was
identified and approved in the City of Eloy FY 2026-2027 Capital Improvement Plan (CIP).
F. Approval to Utilize Arizona Department of Transportation (ADOT) Statewide Contract
No. CTR078503 with Empire Southwest LLC for the Purchase of a Caterpillar 304 Mini
Hydraulic Excavator for an Amount Not to Exceed $120,000. This equipment purchase was
identified and approved in the City of Eloy FY 2026-2027 Capital Improvement Plan (CIP).
G. Adopt Resolution No. 26-1673 Amending Resolution No. 26-1664 Designating the
Chief Fiscal Officer for Officially Submitting the Fiscal Year 2026-2027 Expenditure
Limitation Report to the Arizona Auditor General.
H. Authorization to open a checking account at Enterprise Bank and Trust for the Flexible
Spending Account (FSA) program.

I. Adopt Resolution No. 26-1674 authorizing officers/agents to deposit, transfer, withdraw,
open, and close accounts with Meeder Investment Management.
J. Adopt Ordinance No. 26-1004 approving an amendment to Chapter 5, Section 5-9:
Amendments to the 2018 International Residential Code and Section 5-15: Amendments to
the 2018 International Fire Code, clarifying when an Eloy Fire District approval and permit
is required, and declaring an emergency.
K. Authorize the Eloy Police Department to Renew the Federal Equitable Sharing
Agreement (ESAC) and Approve the Annual Certification Report for FY 2026-2027.
L. Adoption of Resolution No. 26-1675, declaring and adopting the results of the City of
Eloy Primary Election held on July 21, 2026.
M. Consideration and Possible Action to Approve a Three- Year Enterprise Agreement
with Environmental Systems Research Institute, Inc. (Esri) for Geographic Information
System (GIS) Software, Licensing, Maintenance, and Online Services, for a Total Amount
Not to Exceed $67,137.60 Over the Three -Year Agreement Term.
Motion: Councilmember Garcia moved to approve the Consent Agenda as presented.
Second: Councilmember Vodrazka
Vote: Motion passed 7-0 by roll call vote.
Following the vote, Larry Fink, owner of the 170-acre property at the southwest corner of
Sunshine Boulevard and Interstate 10, provided an update on the surrounding development,
noting that a preliminary plat has been submitted, county flood mapping requirements are
being resolved, and Maverik remains under contract for five acres of the site.
VIII. Business: Possible Discussion and/or Action on the Following:
A. Discussion and Consideration of Fiscal Year 2026-2027 Community Partnership
Funding Awards in the Total Amount of $99,500
Management Analyst Abraham Macy presented three community partnership funding
agreements totaling $99,500: (1) Pinal Hispanic Council — $3,000 lump sum for the Eloy
Veterans Day Parade and cookout and the Wreaths Across America ceremony; (2) Greater
Eloy Chamber of Commerce — $71,500 paid on quarterly invoices for chamber operations
($47,500), the Sunland Visitor Center and museum ($15,000) [VERIFY: visitor center name
— transcript renders it "Summan"], and the GLOW event ($5,000, paid once annually); (3)
Corazon de Latinos Unidos — $25,000 lump sum paid on reimbursement for the Eloy Fiestas
Patrias, an increase from $15,000 the prior year.
Council Discussion: Mayor Sutton expressed support for the organizations' work in the
community.
Motion: Councilmember Curtis moved to approve Item A as presented.
Second: Vice Mayor Tarango
Vote: Motion passed 7-0 by roll call vote.

B. Consideration and Possible Action to Approve the Purchase and Installation of a New
Playground System for Shumway Park through Miracle Recreation, Utilizing the
Sourcewell Cooperative Purchasing Contract, and Authorize Purchase Contract No.
101625-PLP in the Amount of $245,811.69
Paul Anchondo, Community Services, presented the request to approve the purchase and
installation of a new playground system for Shumway Park from Miracle Recreation utilizing
Sourcewell cooperative purchasing contract No. 101625-PLP in the amount of $245,811.69.
The existing system is over 15 years old; the new system will double the play space and
include integrated shade structures and a handicap-accessible swing. The project was not
included in the Capital Improvement Plan but was awarded a $29,000 grant, and funding is
available from the City's 2% food tax.
Council Discussion: Councilmember Vodrazka asked about the playground base and
surfacing (rubber mulch-style surfacing, 12 inches). Councilmembers expressed support for
the added shade structures and handicap-accessible equipment and suggested future
landscaping and shade additions.
Motion: Councilmember Garcia moved to approve Item B.
Second: Councilmember Vodrazka
Vote: Motion passed 7-0 by roll call vote.
C. Conduct a public hearing, and consider adopting Resolution No. 26-1676, finding that
the applicable criteria have been met, and approve a three-year time extension to the
previously approved Conditional Use Permit (Case No.: CUP2023-057) to allow a Solar,
Utility Scale Generation and Battery Energy Storage System Facility, submitted by Nate
Tonnemacher of Rose Law Group, on behalf of Milligan Energy Center, LLC, generally
located south and east of the intersection of Milligan Road and South Eleven Mile
Corner Road, consisting of approximately 33 acres
Mayor Sutton opened the public hearing.
Dan Symer, AICP, Community Development, stated the request extends an existing
conditional use permit adjacent to the Milligan substation and that staff recommends
approval of the three-year extension.
John Gillespie, Rose Law Group, on behalf of Milligan Energy Center, LLC (Orsted), stated
the extension is needed to finalize a power purchase agreement with APS and to complete
hydrology and environmental studies.
No members of the public spoke. Mayor Sutton closed the public hearing.
Motion: passed unanimously by voice vote. The Clerk read the resolution by title.
Motion: Councilmember Snyder moved to approve Resolution No. 26-1676 as presented.
Second: Councilmember Vodrazka
Vote: Motion passed 6-1 by roll call vote, with Councilmember Garcia voting no.

D. Consideration and Possible Action to Approve Resolution No. 26-1677 Authorizing
the Acquisition of Real Property Interests, Including Rights of Way, Easements, and
Other Property Rights, Necessary for the Construction of the Sunland Gin Road
Improvement Project, and Authorizing the Use of Eminent Domain if Voluntary
Acquisition Efforts Are Unsuccessful
City Attorney Stephen Cooper presented Resolution No. 26-1677 authorizing the acquisition
of real property interests necessary for construction of the Sunland Gin Road Improvement
Project, and authorizing the use of eminent domain if voluntary acquisition efforts are
unsuccessful. Mr. Cooper explained the engineering plans reached 100% approval on July
28, 2026; the project is funded in part with state and federal monies; and staff recommends
acquiring fee title where facilities such as lighting will be installed rather than easements to
avoid future use conflicts. Appraisals and voluntary negotiations will be attempted first, with
condemnation proceedings initiated only if necessary.
Council Discussion: Councilmember Garcia asked how many businesses would be affected;
staff responded approximately a handful of parcels, with one group of property owners
currently opposed, and stated the City would work to avoid harming any business.
Councilmember Snyder confirmed the federal funds are in addition to the $5 million in state
funding; City Manager Letcher stated the total project cost now exceeds $8 million.
Motion: Councilmember Garcia moved to read Resolution No. 26-1677 by title only;
Councilmember Snyder seconded the motion. The motion passed by unanimous voice vote.
The Clerk read the resolution by title.
Motion: Councilmember Vodrazka moved to approve Resolution No. 26-1677 as presented.
Second: Councilmember Curtis
Vote: Motion passed 7-0 by roll call vote.
IX. Executive Session
No Executive Session was held.
X. Adjournment
Mayor Sutton commended E1 on the debut of the Council Chambers' new audio-visual
system. Councilmember Snyder cautioned members to check their email screening filters, as
legitimate emails may be screened out.
With no further business, Mayor Sutton adjourned the meeting at 7:33 pm
BY:

Andrew Sutton, Mayor

ATTEST:

Michelle Hall, Interim City Clerk
APPROVED AS TO FORM:

Stephen R. Cooper, City Attorney

CITY OF ELOY
REQUEST FOR COUNCIL ACTION
Agenda Item: VII.B.
Date: 8/24/2026
Date submitted:
08/05/2026

Action: Resolution

Date requested:
8/24/2026

TO:

Subject: A Resolution of the Mayor
and Eloy City Council Correcting
Scrivener's Error in Resolution No. 251616 regarding a Notice to Increase
Rates and Charges of the Wastewater
System for the City of Eloy, and
Renumbering said Resolution as
Resolution No. 25-1616.1

Mayor and City Council

FROM:
RECOMMENDATION:
Staff recommends the Adoption of Resolution No. 25-1616.1, correcting Scrivener's
Error in Resolution No. 25-1616 regarding a notice to increase rates and charges of the
Wastewater System for the City, and renumbering said Resolution as Resolution No.
25-1616.1

DISCUSSION:
The City Attorney was advised by the Interim City Clerk that she had discovered the
scrivener's errors in the numbering of approximately four (4) resolutions. These four
resolutions had each been assigned a number that had already been used for a prior
resolution, resulting in duplicate resolution numbers.
City Staff is submitting these four resolutions for Council approval to assign each one a
new, corrected resolution number. Each resolution will remain effective as of its original
date of passage by the City Council. The other resolution, which was passed with the
same resolution number, will not be affected by this amended resolution.
It has come to the attention of the Interim City Clerk that there are two Resolutions,
Nos. 25-1616, approved by the Eloy City Council. One resolution addresses a Notice of
Intention to Increase wastewater utility rates approved on May 27, 2025, and one
resolution was a Minor General Plan Amendment Case No. GPA2024-002 Eloy
Commons North, approved on August 11, 2025.
FISCAL IMPACT:
The other resolution, which was passed with the same resolution number, will not be
affected by this amended resolution.

Approved as to Form:

Stephen R. Cooper, City Attorney

RESOLUTION NO. 25-1616.1

A RESOLUTION OF THE MAYOR AND ELOY CITY COUNCIL
CORRECTING SCRIVENER’S ERROR IN RESOLUTION NO. 251616 REGARDING A NOTICE OF INTENTION TO INCREASE
RATES AND CHARGES OF THE WASTEWATER SYSTEM FOR
THE CITY AND RENUMBERING SAID RESOLUTION AS
RESOLUTION NO. 25-1616.1

WHEREAS, the Eloy City Council on May 27, 2025, adopted a Resolution No. 25-1616
Regarding a Notice of Intention to Increase Rates and Charges of the Wastewater System for the
City; and,
WHEREAS, it has come to the attention of the Interim City Clerk that there are two Resolution
Nos. 25-1616 approved by the Eloy City Council. One resolution addresses a Notice of Intention
to Increase Wastewater utility rates approved on May 27, 2025, and one resolution that was a
Minor General Plan Amendment Case No. GPA2024-002 Eloy Commons North approved on
August 11, 2025; and
WHEREAS, the Eloy City Council has determined that the scrivener or typographical errors
considered in context are insubstantial; and,
WHEREAS, the Eloy City Council nonetheless desires to correct the scrivener's error in the
Numbering of Resolution 25-1616.
NOW, THEREFORE, BE IT RESOLVED by the Mayor and Eloy City Council that
Resolution No. 25-1616, Regarding a Notice of Intention to Increase Rates and Charges of the
Wastewater System for the City, is hereby Renumbered as Resolution No. 25-1616.1.
BE IT FURTHER RESOLVED by the Mayor and Eloy City Council that Resolution No. 251616, Regarding a Minor General Plan Amendment Case No. GPA2024-002 Eloy Commons
North shall not be affected by this Resolution.
BE IT FURTHER RESOLVED by the Mayor and Eloy City Council, Pinal County, that the
above-referenced corrections are effective nunc pro tunc to May 27, 2025.
PASSED AND ADOPTED by the City of Eloy, Arizona, Mayor and Council, this ___th day of
August, 2026.

BY:

____________________________________
Andrew Sutton, Mayor

ATTEST:

APPROVED AS TO FORM:

Michelle Hall, Interim City Clerk

Stephen Cooper, City Attorney

CITY OF ELOY
REQUEST FOR COUNCIL ACTION
Agenda Item: VII.C.
Date: 8/24/2026
Date submitted:
08/05/2026

Action: Resolution

Date requested:
8/24/2026

TO:

Subject: A Resolution of the Mayor
and Eloy City Council Correcting
Scrivener's Error in Resolution No. 251617 regarding a Notice of Intention to
Increase Rates and Charges of the
Potable Water System for the City of
Eloy and Renumbering said resolution
as Resolution No. 25-1617.1

Mayor and City Council

FROM:
RECOMMENDATION:
Staff recommends the adoption of Resolution No. 25-1617.1, correcting Scrivener's
Error in Resolution No. 25-1617.1 regarding a notice to increase rates and charges of
the potable water system for the City of Eloy and renumbering said resolution as
Resolution No. 25-1617.1
DISCUSSION:
The City Attorney was advised by the Interim City Clerk that she had discovered the
scrivener's errors in the numbering of approximately four (4) resolutions. These four
resolutions had each been assigned a number that had already been used for a prior
resolution, resulting in duplicate resolution numbers.
City Staff is submitting these four resolutions for Council approval to assign each one a
new, corrected resolution number. Each resolution will remain effective as of its original
date of passage by the City Council. The other resolution, which was passed with the
same resolution number, will not be affected by this amended resolution.
It has come to the attention of the Interim City Clerk that there are two Resolutions,
Nos. 25-1617. One resolution addresses a Notice of Intention to Increase Potable
Water utility rates, approved on May 27, 2025, and another addresses a Minor General
Plan Amendment, Case No. GPA2024-004 Eloy Commons South approved on August
11, 2025.
FISCAL IMPACT:
Approved as to Form:

Stephen R. Cooper, City Attorney

RESOLUTION NO. 25-1617.1

A RESOLUTION OF THE MAYOR AND ELOY CITY COUNCIL
CORRECTING SCRIVENER’S ERROR IN RESOLUTION NO. 251617 REGARDING A NOTICE OF INTENTION TO INCREASE
RATES AND CHARGES OF THE POTABLEWATER SYSTEM FOR
THE CITY AND RENUMBERING
SAID RESOLUTION AS
RESOLUTION NO. 25-1617.1

WHEREAS, the Eloy City Council on May 27, 2025, adopted a Resolution No. 25-1617
Regarding a Notice of Intention to Increase Rates and Charges of the Potable Water System for
the City; and,
WHEREAS, it has come to the attention of the Interim City Clerk that there are two Resolution
Nos. 25-1617. One resolution addresses a Notice of Intention to Increase Potable Water utility
rates, approved on May 27, 2025, and another addresses a Minor General Plan Amendment, Case
No. GPA2024-004 Eloy Commons South approved on August 11, 2025; and
WHEREAS, the Eloy City Council has determined that the scrivener or typographical errors
considered in context are insubstantial; and,
WHEREAS, the Eloy City Council nonetheless desires to correct the scrivener's error in the
Numbering of Resolution 25-1617.
NOW, THEREFORE, BE IT RESOLVED by the Mayor and Eloy City Council that
Resolution No. 25-1617, Regarding a Notice of Intention to Increase Rates and Charges of the
Potable Water System for the City, is hereby Renumbered as Resolution No. 25-1617.1.
BE IT FURTHER RESOLVED by the Mayor and Eloy City Council that Resolution No. 251617, Regarding a Minor General Plan Amendment Case No. GPA2024-004 Eloy Commons
South shall not be affected by this Resolution.
BE IT FURTHER RESOLVED by the Mayor and Eloy City Council, Pinal County, that the
above-referenced corrections are effective nunc pro tunc to May 27, 2025.
PASSED AND ADOPTED by the City of Eloy, Arizona, Mayor and Council, this ___th day of
August, 2026.

BY:

____________________________________
Andrew Sutton, Mayor

ATTEST:

APPROVED AS TO FORM:

Michelle Hall, Interim City Clerk

Stephen Cooper, City Attorney

CITY OF ELOY
REQUEST FOR COUNCIL ACTION
Agenda Item: VII.D.
Date: 8/24/2026
Date submitted:
08/05/2026

Action: Resolution

Date requested:
8/24/2026

TO:

Subject: A Resolution of the Mayor
and Eloy City Council Correcting
Scrivener's Error in Resolution No. 251621 regarding an Application for
Proposition 202 Grant Funds for
Purchasing one (1) SCBA/Equipment
Washer for the Eloy Fire District and
Renumbering said resolution as
Resolution No.25-1621.1

Mayor and City Council

FROM:
RECOMMENDATION:
Staff recommends adoption of Resolution No. 25-1621.1, correcting Scrivener's Error in
Resolution No. 25-1621 regarding an application for Proposition 202 grant funds for
purchasing one (1) SCBA/Equipment washer for the Eloy Fire District and renumbering
said resolution as Resolution No.25-1621.1
DISCUSSION:
The City Attorney was advised by the Interim City Clerk that she had discovered the
scrivener's errors in the numbering of approximately four (4) resolutions. Specifically,
these four resolutions had each been assigned a number that had already been used
for a prior resolution, resulting in duplicate resolution numbers.
City Staff is submitting these four resolutions for Council approval to assign each one a
new, corrected resolution number. Each resolution will remain effective as of its original
date of passage by the City Council. The other resolution, which was passed with the
same resolution number, will not be affected by this amended resolution.

It has come to the attention of the Interim City Clerk that there are two Resolutions,
Nos. 25-1621. One resolution addresses an Application for Proposition 202 Grant
Funds from the Ak Chin Indian Community in the amount of $32,518.00 for the use of
funds towards the Costs of Purchasing One (1) SCBA/Equipment Washer for the Eloy
Fire District approved on June 23, 2025, and one that was a Development Agreement
with CCAZ Holdings, L.L.C. Contract No. 2025-011-COE approved on August 11,
2025.
FISCAL IMPACT:

Approved as to Form:

Stephen R. Cooper, City Attorney

RESOLUTION NO. 25-1621.1

A RESOLUTION OF THE MAYOR AND ELOY CITY COUNCIL
CORRECTING SCRIVENER’S ERROR IN RESOLUTION NO. 251621 REGARDING AN APPLICATION FOR PROPOSITION 202
GRANT FUNDS FOR PURCHASING ONE (1) SCBA/EQUIPMENT
WASHER FOR THE ELOY FIRE DISTRICT AND RENUMBERING
SAID RESOLUTION AS RESOLUTION NO. 25-1621.1

WHEREAS, the Eloy City Council on June 23, 2025, adopted a Resolution No. 25-1621
Regarding a Submission of an Application for Proposition 202 Grant Funds from the Ak Chin
Indian Community in the amount of $32,518.00 for the use of funds towards the Costs of
Purchasing One (1) SCBA/Equipment Washer for the Eloy Fire District; and,
WHEREAS, it has come to the attention of the Interim City Clerk that there are two Resolution
Nos. 25-1621. One resolution addresses an Application for Proposition 202 Grant Funds from
the Ak Chin Indian Community in the amount of $32,518.00 for the use of funds towards the
Costs of Purchasing One (1) SCBA/Equipment Washer for the Eloy Fire District approved on
June 23, 2025 and one that was a Development Agreement with CCAZ Holdings, L.L.C.
Contract No. 2025-011-COE approved on August 11, 2025; and,
WHEREAS, the Eloy City Council has determined that the scrivener or typographical errors
considered in context, are insubstantial; and,
WHEREAS, the Eloy City Council, nonetheless, desires to correct the scrivener error contained
within the Numbering of Resolution 25-1621.
NOW, THEREFORE, BE IT RESOLVED by the Mayor and Eloy City Council that
Resolution No. 25-1621, an Application for Proposition 202 Grant Funds from the Ak Chin
Indian Community in the amount of $32,518.00 for the use of funds towards the Costs of
Purchasing One (1) SCBA/Equipment Washer for the Eloy Fire District is hereby Renumbered
as Resolution No. 25-1621.1.
BE IT FURTHER RESOLVED by the Mayor and Eloy City Council that Resolution No. 251621, Regarding a Development Agreement with CCAZ Holdings, L.L.C. Contract No. 2025011-COE shall not be affected by this Resolution.
BE IT FURTHER RESOLVED by the Mayor and Eloy City Council, Pinal County, that the
above-referenced corrections are effective nunc pro tunc to June 23, 2025.

PASSED AND ADOPTED by the City of Eloy, Arizona Mayor and Council, this _th day of August,
2026.

BY:

____________________________________
Andrew Sutton, Mayor

ATTEST:

APPROVED AS TO FORM:

Michelle Hall, Interim City Clerk

Stephen Cooper, City Attorney

CITY OF ELOY
REQUEST FOR COUNCIL ACTION
Agenda Item: VII.E.
Date: 8/24/2026
Date submitted:
08/05/2026

Action: Resolution

Date requested:
8/24/2026

TO:

Subject: A Resolution of the Mayor
and Eloy County Council Correcting
the scrivener's error in resolution no.
25-1631 regarding an Application for a
Conditional Use Permit to allow
outdoor storage on the properties
located at 4650 and 4712 N.
Tumbleweed Road, Eloy, Arizona,
case no. cup 2025-005, Desert Septic,
and renumbering said resolution as
resolution no. 25-1631.1

Mayor and City Council

FROM:
RECOMMENDATION:
Staff recommends the adoption of Resolution No. 25-1631.1
DISCUSSION:
The City Attorney was advised by the Interim City Clerk that she had discovered
scrivener's errors in the numbering of approximately four (4) resolutions. Specifically,
these four resolutions had each been assigned a number that had already been used
for a prior resolution, resulting in duplicate resolution numbers.
City Staff is submitting these four resolutions for Council approval to assign each one a
new, corrected resolution number. Each resolution will remain effective as of its original
date of passage by the City Council. The other resolution, which was passed with the
same number, will not be affected by this amended resolution.
It has come to the attention of the Interim City Clerk that there are two Resolutions,
Nos. 25-1631. One resolution addresses a Conditional Use Permit to Allow Outdoor
Storage on the properties located at 4650 and 4712 N. Tumbleweed Road, Eloy,
Arizona, Case No. CUP2025-005, Desert Septic approved on September 8, 2025, and
one that was a Resolution Authorizing an Application to the Arizona Smart Fund for a
Grant for Design and other Engineering Services/Match/Grant
FISCAL IMPACT:
Approved as to Form:

Stephen R. Cooper, City Attorney

RESOLUTION NO. 25-1631.1

A RESOLUTION OF THE MAYOR AND ELOY CITY COUNCIL
CORRECTING SCRIVENER’S ERROR IN RESOLUTION NO. 251631 REGARDING AN APPLICATION FOR A CONDITIONAL USE
PERMIT TO ALLOW OUTDOOR STORAGE ON THE
PROPERTIES LOCATED AT 4650 and 4712 N. TUMBLEWEED
ROAD ELOY, ARIZONA CASE NO. CUP 2025-005 DESERT SEPTIC
AND RENUMBERING SAID RESOLUTION AS RESOLUTION NO.
25-1631.1

WHEREAS, the Eloy City Council on September 8, 2025, adopted a Resolution No. 25-1631
Regarding a Conditional Use Permit to Allow Outdoor Storage on the properties located at 4650
and 4712 N. Tumbleweed Road Eloy Arizona Case No. CUP2025-005 Desert Septic; and,
WHEREAS, it has come to the attention of the Interim City Clerk that there are two Resolution
Nos. 25-1631. One resolution addresses a Conditional Use Permit to Allow Outdoor Storage on
the properties located at 4650 and 4712 N. Tumbleweed Road Eloy Arizona Case No. CUP2025005, Desert Septic approved on September 8, 2025 and one that was a Resolution Authorizing an
Application to the Arizona Smart Fund for a Grant for Design and other Engineering
Services/Match/Grant Development and Submission pursuant to Title 28, Chapter 2, Article 2,
Arizona Revised Statutes and Declaring an Emergency approved on August 11, 2025; and,
WHEREAS, the Eloy City Council has determined that the scrivener or typographical errors
considered in context, are insubstantial; and,
WHEREAS, the Eloy City Council, nonetheless, desires to correct the scrivener error contained
within the Numbering of Resolution 25-1631.
NOW, THEREFORE, BE IT RESOLVED by the Mayor and Eloy City Council that
Resolution No. 25-1631, Conditional Use Permit to Allow Outdoor Storage on the properties
located at 4650 and 4712 N. Tumbleweed Road Eloy Arizona Case No. CUP2025-005, Desert
Septic approved on September 8, 2025 is hereby Renumbered as Resolution No. 25-1631.1.
BE IT FURTHER RESOLVED by the Mayor and Eloy City Council that Resolution No. 251631, Regarding a Resolution Authorizing an Application to the Arizona Smart Fund for a Grant
for Design and other Engineering Services/Match/Grant Development and Submission pursuant
to Title 28, Chapter 2, Article 2, Arizona Revised Statutes and Declaring an Emergency shall not
be affected by this Resolution.

BE IT FURTHER RESOLVED by the Mayor and Eloy City Council, Pinal County, that the
above-referenced corrections are effective nunc pro tunc to September 8, 2025.
PASSED AND ADOPTED by the City of Eloy, Arizona Mayor and Council, this _th day of August,
2026.

BY:

____________________________________
Andrew Sutton, Mayor

ATTEST:

APPROVED AS TO FORM:

Michelle Hall, Interim City Clerk

Stephen Cooper, City Attorney

CITY OF ELOY
REQUEST FOR COUNCIL ACTION
Agenda Item: VII.F.
Date: 8/24/2026
Date submitted:
08/17/2026

Action: Ordinance

Date requested:
8/24/2026

TO:

Subject: An Ordinance 26-1005 of the
Mayor and City Council of the City of
Eloy, Pinal County, Arizona, Adding
Section 12-2(D) to the Eloy City Code
Authorizing the City Attorney and City
Clerk to Correct Scrivener's Errors in
the City Code, Ordinances,
Resolutions, and Minutes Adopted by
the City Council or Other Public Body;
Repealing Conflicting Provisions, and
Setting an Effective Date.

Mayor and City Council

FROM:
RECOMMENDATION:
Staff recommends the adoption of Ordinance No. 26-1005, adding Section 12-2(D) to
the Eloy City Code, authorizing the City Attorney and City Clerk to correct scrivener's
errors in the City Code, ordinances, resolutions, and minutes adopted by the City
Council or other public body, without the need for re-adoption.
DISCUSSION:
The Interim City Clerk discovered scrivener's errors in the numbering of four resolutions
adopted in 2025, each of which had been assigned a resolution number that had already been
used for a prior resolution. Each of these duplicate numbering errors required Council to
separately adopt a corrective resolution renumbering the affected item.
Going forward, the City Clerk's Office will monitor the issuance of resolution and ordinance
numbers to help prevent duplicate assignments. City Staff is also submitting this corrective
Ordinance for Council's approval to establish a standing procedure for addressing any
scrivener's errors that may still occur.
To address the recurrence of this issue and provide a standing procedure for correcting similar
clerical errors going forward, City Staff and the City Attorney's Office have prepared this
Ordinance adding Section 12-2(D) to the Eloy City Code. The Ordinance authorizes the City
Attorney and City Clerk to correct scrivener's errors defined to include misspellings,
grammatical errors, numbering errors, cross-referencing errors, and inconsistencies with the
City's adopted style rules, in the City Code, ordinances, resolutions, and minutes, without
requiring the underlying item to be re-adopted by Council.

Each correction made under this authority must be accompanied by a scrivener's note and
reported to Council within three months at a regular meeting. The Ordinance further provides
that no correction made under this authority may constitute a substantive alteration, or
otherwise change the meaning, intent, or effect, of the originally adopted item; any correction
that would substantively alter the original action still requires formal action by the City Council
or applicable public body.
FISCAL IMPACT:
None. This Ordinance establishes an administrative correction procedure and has no
fiscal impact to the City.
Approved as to Form:

Stephen R. Cooper, City Attorney

ORDINANCE NO.: 26-1005
AN ORDINANCE OF THE MAYOR AND CITY COUNCIL OF THE CITY OF ELOY,
PINAL COUNTY, ARIZONA, ADDING SECTION 12-2 (D) TO THE ELOY CITY CODE
AUTHORIZING THE CITY ATTORNEY AND CITY CLERK TO CORRECT
SCRIVENER'S ERRORS IN THE CITY CODE, ORDINANCES, RESOLUTIONS, AND
MINUTES ADOPTED BY THE CITY COUNCIL OR OTHER PUBLIC BODY;
REPEALING CONFLICTING PROVISIONS, AND SETTING AN EFFECTIVE DATE.
NOW, THEREFORE, BE IT ORDAINED BY THE MAYOR AND CITY COUNCIL OF
THE CITY OF ELOY, ARIZONA, AS FOLLOWS:
SECTION I. SECTION 12-2 (D) IS ADDED TO THE ELOY CITY CODE AS FOLLOWS:
D. AUTHORITY TO CORRECT SCRIVENER'S ERRORS. The City Attorney and
City Clerk are hereby each individually authorized to correct scrivener's errors in the City
Code, ordinances, resolutions, and minutes adopted by the City Council or other public
body without the need for re-adoption of the City Code provision, ordinance, resolution,
or minutes.
1. For the purposes of this Section, a scrivener's error includes one (1) or more of the
following:
1. A misspelling;
2. A grammatical error;
3. A numbering error;
4. A cross-referencing error; or
5. An inconsistency with the rules of style adopted for the reformatted Eloy Code.
2. A correction to an ordinance, resolution, or minutes shall be accompanied by a
scrivener's note on or attached to the corrected ordinance, resolution, or minutes. Any such
correction shall be reported within three (3) months of such correction at a regular meeting
of the City Council.
3. Corrections to complete sections of the City Code shall be noted therein.
4. No correction made under this authority shall constitute a substantive alteration of, or
otherwise change the meaning, intent, or effect of, the originally adopted City Code
provision, ordinance, resolution, or minutes. Any correction that would substantively alter
the meaning, intent, or effect of the original action shall require formal action by the City
Council or the applicable public body.
Section No. 2: Any provision of the City of Eloy Municipal Code, all Ordinances and/or parts of
Ordinances in conflict with the provisions of this Ordinance or any part thereof adopted herein by
this reference are hereby repealed.
Section No. 3: If any section, subsection, sentence, clause, phrase or portion of this Ordinance or
any part of the code adopted herein by this reference is for any reason held to be invalid or
unconstitutional by the decision of any Court of competent jurisdiction, such decision shall not
affect the validity of the remaining portions thereof.
Page 1 of 2

Section No. 4: The passage of this Ordinance is effective thirty (30) days after the passage of this
Ordinance by the Eloy City Council.
PASSED AND ADOPTED by the Mayor and City Council of the City of Eloy, Arizona, on this
24th day of August, 2026.
BY:
_______________________________
Andrew Sutton, Mayor
ATTEST:
_______________________________
Michelle Hall, Interim City Clerk
APPROVED AS TO FORM:
_______________________________
Stephen R. Cooper, City Attorney

Page 2 of 2

CITY OF ELOY
REQUEST FOR COUNCIL ACTION
Agenda Item: VIII.A.
Date: 8/24/2026
Date submitted:
08/14/2026

Action: Formal

Date requested:
8/24/2026

TO:

Mayor and City Council

FROM:

Brian Wright, Finance Director

Subject: Annette Gaston, from PFM
Asset Management, LLC, will make a
presentation on the City's investment
portfolio as of June 30, 2026.

RECOMMENDATION:
Annette Gaston of PFM Asset Management will present to the City Council the City’s
Investment Portfolio as of June 30, 2026.
DISCUSSION:
PFM Assets Management has been the City’s Investment Advisor since 2015. Annette
Gaston will present the City Investment Portfolio and update the City Council on current
economic conditions.
FISCAL IMPACT:
None
Approved as to Form:

Stephen R. Cooper, City Attorney

City of Eloy
Investment Portfolio Summary
Quarter Ending June 30, 2026
Annette Gaston, Director
480-271-0432

A division of U.S. Bancorp Asset Management, Inc.

pfmam.com

City of Eloy as of
06/30/26

Executive Summary1,2

Account Summary

Ending Value
as of 3/31/26

Ending Value
as of 6/30/26

Market Value¹

$35,021,546.12

$35,184,545.46

Book Value¹

$35,004,355.91

$35,387,962.13

$17,190.21

($203,416.67)

Market Yield

3.82%

4.16%

Yield at Cost

3.97%

3.91%

Unrealized Gain/(Loss)

Maturity Distribution

U.S. Treasury, 100%

Money Market Fund, <1%

Credit Quality
(S&P Ratings)

50%
45%

Sector Distribution

²Weighted Average Maturity: 1.86 years

40%
35%
30%
25%

AA, >99%

20%
Money Market Fund, <1%

15%
10%
5%
0%
Overnight

1.
2.

0-1 Years

1-2 Years

2-3 Years

Market Value and Book Value exclude accrued interest and include $115,295.23 in Money Market Funds as of 06/30/2026.
Weighted average maturity includes cash balances and uses book values for weighting. Accrued interest is excluded.

1

City of Eloy as of
06/30/26

Security Type and Issuer Compliance1,2

Security Type

Book Value

% of Portfolio Permitted by Policy

U.S. Treasury

$35,272,666.90

100%

100%

Money Market Fund

$115,295.23

<1%

100%

Total Book Value

$35,387,962.13

100%

Issuer

Book Value

% of Portfolio

Permitted
by Policy

United States Treasury

$35,272,666.90

100%

100%

Money Market Fund

$115,295.23

<1%

100%

Total Book Value

1.
2.

$35,387,962.13

Maturity Bucket

Portfolio

% of Portfolio Permitted by Policy

Overnight

$115,295

0.33%

No Limit

0-6 Months

$0

0.00%

No Limit

6-12 Months

$3,696,247

10.44%

No Limit

1-2 Years

$15,995,871

45.20%

No Limit

2-3 Years

$15,580,550

44.03%

No Limit

Total Book Value

$35,387,962.13

100%

Accrual Basis Earnings

4/1/2026 through 6/30/2026

Estimated Earnings

$359,808

Total Estimated Earnings

$359,808

100%

Investment policy dated April 2015.
Maturity distribution does not include accrued interest.

2

City of Eloy as of
06/30/26

Economic Update
Current Market Themes
▸ U.S. growth remains resilient as AI-driven investment offsets a
moderating consumer

▹ Headline inflation may be at or near its peak as the
energy shock fades, though flare-ups in the Middle East
conflict and potential delayed passthroughs to core
inflation remain key risks
▹ The labor market is in balance, though real wage growth
remains modest
▹ AI investment continues to drive growth while fueling
inflation in tech-related categories

▸ The Federal Reserve (Fed) left policy rates unchanged at 3.503.75%
▹

New Fed Chair Kevin Warsh stressed restoring price stability

▹

Forward guidance was removed to refocus markets on
economic fundamentals and incoming data rather than the
Fed's policy response

▹

Nine participants projected a 2026 rate hike though Warsh did
not submit projections

▹

Given current pricing of Fed rate hikes, we continue to find
value in the front end

▸ Treasury yields moved higher on a more hawkish Fed
▹

▹

Longer-term rates face two-sided risks from inflation and
growth dynamics
Credit spreads remain tight as resilient growth, stable labor
conditions, and strong demand outweigh valuation concerns

Source: Bloomberg Finance L.P., as of June 30, 2026.

Market Outlook
• The Federal Reserve (Fed) unanimously voted to keep the federal funds
target range at 3.50%–3.75% during Kevin Warsh’s first meeting as Fed
Chair. While the policy decision was broadly expected, the meeting
marked a notable shift in communication strategy as forward guidance
was removed from the policy statement and replaced with a more
analytical and data-dependent approach to policymaking.
• Chair Warsh repeatedly affirmed the Fed’s commitment to price stability
and announced five task forces focused on communications; balance
sheet policy; data and analytical frameworks; productivity and
employment trends (including AI); and the Fed’s inflation framework.
While the reviews could meaningfully change how the Fed communicates
and evaluates economic conditions, the Committee’s 2% inflation target
remains outside their scope.
• Inflation remained above the Fed's target in May, though the picture was
mixed. Headline PCE rose to 4.1% year-over-year, largely reflecting
elevated energy prices. Core PCE increased to 3.4%year-over-year,
reflecting ongoing stickiness in services sectors while goods inflation
moderated as tariff-related pressures continue to fade. We believe
inflation may be at or near its peak as the recent decline in oil and gasoline
prices should help moderate energy-related inflation pressures in the
months ahead. Potential flare-ups in the Middle East remain a key risk to
the outlook.
• Economic growth remained solid on the surface as Q1 GDP was revised
up to 2.1% from 1.6%. However, consumer spending made its weakest
contribution to GDP since Q1 2022. Business investment remained a
bright spot, particularly within technology, software, and AI-related
capital spending.
• Labor-market data increasingly pointed toward normalization rather than
acceleration. June payroll growth came in below expectations with
57,000 created, while prior months were revised lower. The
unemployment rate ticked lower to 4.2%, though the bulk of that decline
was the direct result of a declining labor force participation rate. At the
same time, job openings remained elevated and layoffs stayed historically
low, highlighting a labor market that appears to be cooling gradually
rather than deteriorating abruptly. Wage growth continued to moderate
and remained below headline inflation, reinforcing concerns surrounding
household purchasing power and the durability of consumer spending.

3

Economic Update

4

Current Market Themes

▸ U.S. growth remains resilient as AI-driven investment offsets a moderating consumer

▹ Headline inflation may be at or near its peak as the energy shock fades, though flare-ups in the
Middle East conflict and potential delayed passthroughs to core inflation remain key risks
▹ The labor market is in balance, though real wage growth remains modest

▹ AI investment continues to drive growth while fueling inflation in tech-related categories

▸ The Federal Reserve (Fed) left policy rates unchanged at 3.50-3.75%
▹ New Fed Chair Kevin Warsh stressed restoring price stability

▹ Forward guidance was removed to refocus markets on economic fundamentals and incoming
data rather than the Fed's policy response
▹ Nine participants projected a 2026 rate hike though Warsh did not submit projections

▸ Treasury yields moved higher on a more hawkish Fed

▹ Given current pricing of Fed rate hikes, we continue to find value in the front end
▹ Longer-term rates face two-sided risks from inflation and growth dynamics

▹ Credit spreads remain tight as resilient growth, stable labor conditions, and strong demand
outweigh valuation concerns

Source: Details on market themes and economic indicators provided throughout the body of the presentation. Bloomberg Finance L.P., as of June 30,
2026.

5

Treasury Yields Rise Across the Curve

U.S. Treasury Yield Curve

5.50%

5.12%

5.11%

5.00%
4.59%
4.44%

4.50%
Yield

4.30%
4.17%

4.00%
3.78%
1 Year Range

3.50%

July 16, 2026
June 16, 2026

3.00%

3mo

2yr

5yr

7yr

10yr

20yr

30yr

Maturity

Source: Bloomberg Finance L.P., as of July 16, 2026.

6

Factors Shaping Our Economic Outlook
Negative

Neutral

Positive

▸ Geopolitical uncertainty and
supply chain disruptions

▸ Fed policy uncertainty

▸ Low layoffs and stable
unemployment rate

▸ Increasing retail credit card
balances

▸ U.S. growth near trend but led
by AI investment

▸ Supportive fiscal policy

▸ Core inflation passthrough from
energy shock modest thus far

▸ Savings rate near record low

Hormuz Ship Traffic

U.S. GDP Forecasts

Daily Volume

Range
5%

60

Actual

Initial Jobless Claims

Median Forecast

290

4.4%

40

250
2.5%

3%

30

Jobless claims remain
low and stable

270

4%

50

1.9%

2.1%

2%

215

230

20

210
190

1%

10
0
Mar-26

▸ Corporate fundamentals

170

0.5%

0%
Apr-26

May-26

Jun-26

Q3 '25

Q4 '25

Q1 '26

Q2 '26

Q3 '26

150
Jun-22

Jun-23

Jun-24

Sources: Bloomberg Finance L.P. as of June 30, 2026, Bureau of Economic Analysis as of March 31, 2026, and Department of Labor as of June 19,
2026. Survey responses after June 26, 2026, included in median and forecast range. Shading represents the central 80% of the forecasts.

Jun-25

Jun-26

7

Disclaimer

The views expressed within this material constitute the perspective and judgment of U.S. Bancorp Asset
Management, Inc. at the time of distribution and are subject to change. Any forecast, projection, or
prediction of the market, the economy, economic trends, and equity or fixed-income markets are based
upon current opinion as of the date of issue and are also subject to change. Opinions and data presented
are not necessarily indicative of future events or expected performance. Information contained herein is
based on data obtained from recognized statistical services, issuer reports or communications, or other
sources, believed to be reliable. No representation is made as to its accuracy or completeness.
PFM Asset Management serves clients in the public sector and is a division of U.S. Bancorp Asset
Management, Inc., which is the legal entity providing investment advisory services. U.S. Bancorp Asset
Management, Inc. is a registered investment adviser, a direct subsidiary of U.S. Bank N.A. and an indirect
subsidiary of U.S. Bancorp. U.S. Bank N.A. is not responsible for and does not guarantee the products,
services, or performance of U.S. Bancorp Asset Management, Inc.
NOT FDIC INSURED : NO BANK GUARANTEE : MAY LOSE VALUE
For Institutional Investor or Investment Professional Use Only – This material is not for inspection by,
distribution to, or quotation to the general public.

8