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Home My WebLink AboutDevelopment Fee Report - Fiscal Year 08-09 (PDF)_201501121304429764.pdf16705 E. Avenue of the Fountains, Fountain Hills, Arizona 85268 ANNUAL DEVELOPMENT FEE REPORT For Fiscal Year Ended June 30, 2009 Town of Fountain Hills, Arizona Prepared By: Town of Fountain Hills Finance Department August 29, 2009 Julie Ghetti, Deputy Town Manager 16705 E. Avenue of the Fountains, Fountain Hills, Arizona 85268 Finance Department Ph. (480) 816-5113 Fax (480) 837-3145 Fountain Hills Town Clerk, and other interested parties: The Town of Fountain Hills (the Town), Arizona, Annual Report of the Collection and Use of Development Fees for the Fiscal Year Ended June 30, 2009 is provided for public inspection and review in accordance with Arizona Revised Statutes (ARS) Section 9-463.05(G) “Development fees; imposition by cities and towns; annual report.” Effective August 12, 2005, ARS Section 9 - 463.05 was amended to require an annual report that accounts for the collection and use of development fees. The annual report must be submitted to the Town Clerk within ninety days following the end of the fiscal year in order for the Town to continue collecting development fees. The report must provide the balance of each fund maintained for each type of development fee at the beginning and end of the year along with the current year’s activity. The required components of current year activity include development fee collections, interest earnings, repayment of bonds and advances; capital improvement project expenditures include project location, and expenditures for each purpose other than a capital project that is the subject of a development fee. Development fees (also sometimes known as impact fees) are one-time payments collected on new building permits taken out in the Town. The fees are intended to reduce the financial impact of residential and commercial growth on existing Town infrastructure and service delivery. In general, development fees are defined as “one-time capital recovery charges assessed against new development as a way to recover a proportional share of the cost of capital facilities constructed to provide service capacity for new customers”. Development fees may not be used for replacement of existing facilities nor may they be used to cover operating expenses. Currently, the Town of Fountain Hills sets its development fees based on recommendations received from consultants periodically contracted to do studies of the Town’s development fees. The Town’s Capital Improvement/Infrastructure Improvement (CIP/IIP) plan is an integral part of each of the studies and takes into account projected growth. The Town’s CIP/IIP is available from the Town Clerk or on the Town’s website at fh.az.gov/finance under Budgets and Reports. For Fiscal Year 2009 the Town had seven categories of development fees, as follows: Fund 802 Law Enforcement facilities, vehicles, equipment Fund 804 Fire and Emergency facilities, vehicles, equipment Fund 806 Streets right-of-way costs, intersection development Fund 810 Parks and Recreation developing new parks 16705 E. Avenue of the Fountains, Fountain Hills, Arizona 85268 Fund 814 Open Space conservation improvements Fund 816 Library/Museum buildings and/or collection materials Fund 819 General Government growth related facilities, equipment, vehicles As required by state law, the following pages include (as applicable): 1. The amount assessed by the municipality for each type of development fee 2. The balance of each fund maintained for each type of development fee assessed as of the beginning and end of the fiscal year. 3. The amount of interest or other earnings on the monies in each fund as of the end of the fiscal year. 4. The amount of development fee monies used to repay: a. Bonds issued by the municipality to pay the cost of capital improvement project that is the subject of a development fee assessment. b. Monies advanced by the municipality from funds other than the funds established for development fees in order to pay the cost of a capital improvement project that is the subject of a development fee assessment. 5. The amount of development fee monies spent on each capital improvement project that is the subject of a development fee assessment and the physical location of each capital improvement project. 6. The amount of development fee monies spent for each purpose other than a capital improvement project that is the subject of a development fee assessment. This report complies with ARS Section 9-463.05 as amended. The information contained in this report is based on the Town’s fund financial statements but is un-audited data. If you have any questions about this report or need additional information, contact: Town of Fountain Hills Finance Division 16705 E. Avenue of the Fountains Fountain Hills, AZ 85268 16705 E. Avenue of the Fountains, Fountain Hills, Arizona 85268 Town of Fountain Hills, Arizona Annual Development Fee Report Fiscal Year 2009 Development Fee Rates From July 1, 2008 – June 30, 2009 Fee Area Unit Fee General Government Residential (1) dwelling $993 Non-Residential (2) s.f. $0.622 Law Enforcement Residential (1) dwelling $472 Non-Residential (2) s.f. $0.295 Open Space Residential (1) dwelling $867 Parks and Recreation Residential (1) dwelling $1,479 Fire and Emergency Residential (1) dwelling $106 Non-Residential (2) s.f. $0.066 Library and Museum Residential (1) dwelling $174 Streets SF-Residential dwelling $1,381 MF-Residential dwelling $819 Commercial s.f. $3.21 Office s.f. $2.35 Hotel s.f. $1.61 Industrial s.f. $0.998 (1) Residential includes single and multi-family dwelling units, n/a = not applicable (2) Non-residential includes commercial and industrial square footage, n/a = not applicable Please also note that on May 15, 2008 the Town Council of Fountain Hills adopted Ordinance No. 08-13 that contains an automatic adjustment provision stating that “The Development fees in this section will automatically adjust for inflation using the Engineering News Record – 20 city construction cost index (ENR-CCI) on the first day of each fiscal year. The Town shall provide public notice of those adjustments at least thirty days in advance of their effective date, pursuant to 9-500.46.05(F), as amended. The last time the fees increased as a result of inflation was August 8, 2008. 16705 E. Avenue of the Fountains, Fountain Hills, Arizona 85268 Town of Fountain Hills, Arizona Annual Development Fee Report Fiscal Year 2009 Development Fee Expenditures Detail From July 1, 2008 – June 30, 2009 Project Fund Number Project Name Project Location Expenditures 710 N/A Development Fee Study $5,187 720 N/A Development Fee Study $1,293 730 N/A Development Fee Study $16,518 T5003 Traffic Signal Palisades and Sunridge $508,218 740 N/A Development Fee Study $17,457 750 N/A Development Fee Study $10,345 O7005 Botanical Garden Fountain Hills/Kingstree Blvds $35,163 760 N/A Development Fee Study $2,294 770 N/A Development Fee Study $11,561 Total Expenditures $608,036 SCHEDULE OF CAPITAL PROJECT EXPENDITURES 16705 E. Avenue of the Fountains, Fountain Hills, Arizona 85268 Town of Fountain Hills, Arizona Annual Development Fee Report Fiscal Year 2009 Summary by Development Fee From July 1, 2008 – June 30, 2009 710 720 730 740 750 760 770 Law Fire and Parks and Open Library General Enforcement Emergency Streets Recreation Space Museum Government Total Beginning fund balance 6/30/2008 $178,620 $34,581 $436,313 ($574,660)$1,662,187 $36,160 $485,023 $2,258,224 REVENUES Development Fees Collected $10,497 $2,378 $50,408 $14,621 $6,785 $2,118 $20,898 $107,705 Transfers $541,416 $541,416 InterestEarnings $2,830 $702 $4,526 $5,760 $4,755 $702 $4,817 $24,092 Total Revenues $13,327 $3,080 $54,934 $561,797 $11,540 $2,820 $25,715 $673,213 EXPENDITURES Capital Project Expenditures $5,187 $1,293 $524,736 $17,457 $45,508 $2,294 $11,561 $608,036 Debt Service Payments $0 Total Expenditures $5,187 $1,293 $524,736 $17,457 $45,508 $2,294 $11,561 $608,036 Net Cash Increase (Decrease) $8,140 $1,787 ($469,802)$544,340 ($33,968)$526 $14,154 $65,177 End of Year Cash Balance $186,760 $36,368 ($33,489) ($30,320)$1,628,219 $36,686 $499,177 $2,323,401 SUMMARY OF THE COLLECTION AND USE OF DEVELOPMENT FEES