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City strikes deal to keep library post office open, but loses most of its revenue

City officials on Thursday confirmed they had come to terms on an extension agreement with the U.S. Postal Service to continue operating a postal unit inside the Maricopa Library and Cultural Center. [David Iversen]

For weeks, a sign on the post office counter warned of its impending closure inside the Maricopa Library and Cultural Center. With fewer than 48 hours before services were scheduled to stop, the city struck a deal to keep it open — by giving up as much as $40,000 in annual revenue sharing.

Maricopa leaders and the U.S. Postal Service agreed this morning to avoid the Friday shutdown.

The post office, which opened in 2021 to relieve long lines at the city’s only full-service post office on Hathaway Avenue, was first marked for closure in mid-August when USPS notified the city its existing contract would not be renewed. At that time, officials said they had exhausted efforts to reverse the decision, even enlisting help from Arizona’s congressional delegation.

But just days before the deadline, USPS presented the city with a new offer. While earlier contracts allowed Maricopa to collect a percentage of sales from stamps and pre-paid packages — a revenue stream averaging $30,000 to $40,000 annually — the new agreement replaces that system with a flat annual fee of just $100.

The city acknowledged the financial hit but said it was the only option USPS offered.

“The community benefit outweighs the financial change,” the city said in a release announcing the deal. Officials added they will continue monitoring usage, working with USPS on long-term needs and exploring ways to restore revenue in the future.

The new contract is effective immediately, ensuring uninterrupted service for residents, including Saturday hours unavailable at the Hathaway Avenue branch. City leaders thanked residents for their patience during negotiations and praised staff for keeping the counter open.

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