HomeMy WebLinkAboutDevelopment Fee Report - Fiscal Year 09-10 (PDF)_201501121304428358.pdfANNUAL DEVELOPMENT FEE REPORT
For Fiscal Year Ended
June 30, 2010
Town of Fountain Hills, Arizona
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Prepared By:
Town of Fountain Hills Finance Department
August 16, 2010
Julie Ghetti, Deputy Town Manager
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, 2010 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.
However, the Arizona State Legislature mandated a freeze on development fee rates as of
September 1, 2009, and extended the freeze until June 30, 2012. 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 710 Law Enforcement facilities, vehicles, equipment
Fund 720 Fire and Emergency facilities, vehicles, equipment
Fund 730 Streets right-of-way costs, intersection development
Fund 740 Parks and Recreation developing new parks
Fund 750 Open Space conservation improvements
Fund 760 Library/Museum buildings and/or collection materials
Fund 770 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
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Town of Fountain Hills, Arizona
Annual Development Fee Report
Fiscal Year 2010
Development Fee Rates
From July 1, 2009 — June 30, 2010
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
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 adjustment will become effective
after July 1, 2012. The Town also adopted Ordinance 2009-09 on December 3, 2009 increasing
the fees effective July I, 2012.
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Town of Fountain Hills, Arizona
Annual Development Fee Report
Fiscal Year 2010
Development Fee Expenditures Detail
From July 1, 2009 — June 30, 2010
SCHEDULE OF CAPITAL PROJECT EXPENDITURES
Project
Fund Number Project Name Project Location Expenditures
710 NIA Development Fee Study $384
720 NIA Development Fee Study $85
730 NIA Development Fee Study ($11,804)
T5009 Traffic Signal Upgrades $142,400
740 NIA Development Fee Study
750 NIA Development Fee Study
$1,151
$682
760 NIA Development Fee Study $128
770 NIA Development Fee Study
Total Expenditures
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$767
$133,793
Town of Fountain Hills, Arizona
Annual Development Fee Report
Fiscal Year 2010
Summary by Development Fee
From July 1, 2009 - June 30, 2010
SUMMARY OF THE COLLECTION AND USE OF DEVELOPMENT FEES
710 720 730 740 750 760 770
Law Fire and Parks and Open Library General
Enforcement Emergency Streets Recreation Space Museum Gowrnment Total
Beginning fund balance 6130/2009 $186,921 536,399 (533,298) ($30,580) $1,629,643 536,719 $499,612 $2,325.416
REVENUES
De%elopment Fees Collected $8,646 $1,978 $181,487 $22,076 $9,897 $3,253 516,194 5243,531
Transfers
lnterestEamings
$177
$34
S77
(S65)
$1,544
S35
$472
$2,274
Total Revenues
$8,823
$2,012
$181,564
$22,011
S11,441
$3,288
$16,666
$245,805
EXPENDITURES
Capital Project Expenditures
$384
$85
$130,596
$1.151
$682
$128
$767
$133,793
Debt Serdce Payments
$0
Total Expenditures
$384
$85
$130,596
$1,151
$682
5128
$767
$133,793
Net Cash Increase (Decrease)
$8,439
$1,927
$50,968
$20,860
$10.759
$3,160
$15,899
$112.012
End of Year Cash Balance
S195,360
$38,326
$17.670
(S9.720)
$1,640,402
$39.879
5515,511
$2.437.428
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