Tempe City Council initiates Financial Empowerment Center planning to enhance community financial stability

Tempe City Council is set to launch a groundbreaking Financial Empowerment Center (FEC) aimed at enhancing financial stability for residents. During the work study session on April 3, 2025, representatives from Cities for Financial Empowerment presented the initiative, which promises to provide no-cost, individualized financial counseling to all residents over the age of 18.

The FEC is designed to address financial challenges that often lead to homelessness and poverty. By offering professional guidance, the program aims to help individuals manage debt, increase savings, and improve overall financial health. Rose Harvey, manager of FEC Innovations, emphasized the program's potential to serve as a model for other cities in the Southwest, highlighting its success in 37 locations nationwide, where it has helped clients reduce over $315 million in debt.

Council members expressed enthusiasm for the initiative, recognizing its alignment with existing local programs and the potential for community partnerships. Vice Mayor Garland noted the importance of empowering residents to take control of their financial health, while Councilmember Chin highlighted the integration of the FEC with local educational institutions and other community resources.

The planning process for the FEC is expected to take 8 to 12 months, during which the city will work to establish partnerships with local nonprofits and develop a robust marketing strategy to reach diverse community groups. Council members urged for an expedited timeline, citing the urgent need for financial literacy resources in the community.

The FEC will not only focus on personal finance but also support small business owners, helping them separate personal and business finances and connect with additional resources. The initiative aims to create a comprehensive support system that addresses the financial needs of various demographics, including veterans, low-income families, and individuals involved in the criminal justice system.

With a $20,000 grant already secured for the planning phase and potential additional funding for implementation, the FEC represents a significant step toward fostering financial empowerment in Tempe. The council's commitment to this initiative underscores the importance of addressing financial literacy as a means to uplift the community and reduce poverty rates.