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Home My WebLink Aboutagendapacket__06-03-25_0529_738 NOTICE OF MEETING WORK SESSION FOUNTAIN HILLS TOWN COUNCIL Mayor Gerry M. Friedel Vice Mayor Hannah Larrabee Councilmember Gayle Earle Councilmember Brenda Kaliviankis Councilmember Rick Watts Councilmember Peggy McMahon Councilmember Allen Skillicorn TIME:4:00 P.M. – WORK SESSION WHEN:TUESDAY, JUNE 3, 2025 WHERE:FOUNTAIN HILLS COUNCIL CHAMBERS 16705 E. AVENUE OF THE FOUNTAINS, FOUNTAIN HILLS, AZ Councilmembers of the Town of Fountain Hills will attend either in person or by telephone conference call; a quorum of the Town’s various Commission, Committee or Board members may be in attendance at the Council meeting. Notice is hereby given that pursuant to A.R.S. §1-602.A.9, subject to certain specified statutory exceptions, parents have a right to consent before the State or any of its political subdivisions make a video or audio recording of a minor child. Meetings of the Town Council are audio and/or video recorded and, as a result, proceedings in which children are present may be subject to such recording. Parents, in order to exercise their rights may either file written consent with the Town Clerk to such recording, or take personal action to ensure that their child or children are not present when a recording may be made. If a child is present at the time a recording is made, the Town will assume that the rights afforded parents pursuant to A.R.S. §1-602.A.9 have been waived. AGENDA NOTICE OF OPTION TO RECESS INTO EXECUTIVE SESSION Pursuant to A.R.S. §38-431.02, notice is hereby given to the members of the Town Council, and to the general public, that at this meeting, the Town Council may vote to go into executive session, which will not be open to the public, for legal advice and discussion with the Town's attorneys for legal advice on any item listed on the following agenda, pursuant to A.R.S. §38-431.03(A)(3). 2.CALL TO ORDER – Mayor Gerry M. Friedel 3.ROLL CALL – Mayor Gerry M. Friedel 4.PRESENTATIONS A.PRESENTATION: Draft Land Use Assumptions and Infrastructure Improvements Plan 5.ADJOURNMENT Dated this 29 day of May, 2025./s/ Bevelyn J Bender, Town Clerk The Town of Fountain Hills endeavors to make all public meetings accessible to persons with disabilities. Please call 480-816-5100 (voice) or 1-800-367-8939 (TDD) 48 hours prior to the meeting to request a reasonable accommodation to participate in the meeting or to obtain agenda information in large print format. Supporting documentation and staff reports furnished the Council with this agenda are available for review in the Clerk's Office. ITEM 4. A. TOWN OF FOUNTAIN HILLS STAFF REPORT Meeting Date: 06/03/2025 Meeting Type: Town Council Work Session Agenda Type: Presentations Submitting Department: Administration Prepared by: Paul Soldinger, Chief Financial Officer Staff Contact Information: Paul Soldinger, Chief Financial Officer Request to Town Council Work Session (Agenda Language): PRESENTATION: Draft Land Use Assumptions and Infrastructure Improvements Plan Staff Summary (Background): Arizona municipalities may assess development impact fees to offset costs associated with maintaining necessary public services to accommodate development growth. Further, Arizona Revised Statutes 9-463.05(D)(3) requires a municipality to update its Land Use Assumptions and Infrastructure Improvements Plan report, which sets the development impact fee schedule, every five years. The Town's last Land Use Assumptions and Infrastructure Improvements Plan report was completed in 2020, and therefore, the Town must update the report in accordance with State law to continue charging development impact fees on development within the Town. The Town Council approved staff to begin this process with a contracted Firm TischlerBise at the November 19, 2024 meeting. The Town charges development impact fees for fire, streets, and parks purposes, and collected the following impact fee revenues in the last fiscal year 2024: Fire: $9,738 Streets: $181,726 Parks: $132,285 Staff from the Finance Division, Development Services, Public Works, Fire Department, and Community Services departments, have been collaborating with TischlerBise staff to create an updated Land Use Assumptions and Infrastructure Improvement Plans report. The updated assumptions take into account expected development and population growth for the Town of Fountain Hills over the next 10 years, as well as current construction costs. These collective considerations will substantially increase the impact fees that the Town charges developers on new development within the Town. For example, for a single-family residence, the Town's collective impact fees (including Fire, Streets, and Parks components) could be increasing from a current rate of $3,973 for each new single family residence to a proposed collective rate of $12,314, based on the growth assumptions. The purpose of this Work Session is to provide an update to Council based on the assumptions that have been developed through this update process. However, the Town is still very early in the process before the final updated development impact fees can be considered by the Town Council. According to TischlerBise's project timeline, the updated impact fees could go into effect by April 6, 2026: January 2025: Project Initiation Meeting June 3, 2025 (Today): Work Session July 1, 2025: Advertise the draft Land Use Assumptions and Infrastructure Improvements Plan report on the Town website for 60 days TBD: The Town has the option to hold a stakeholder Outreach meeting before a public hearing on the Land Use Assumptions and Infrastructure Improvements Plan report September 16, 2025: Public hearing during Council Meeting on the draft Land Use Assumptions and Infrastructure Improvements Plan report October 21, 2025: Council adoption of Land Use Assumptions and Infrastructure Improvements Plan report October 22, 2025: Advertise the adopted report on the Town website for 30 days before a public hearing on the proposed development impact fees November 25, 2025: Public hearing during Council Meeting on the proposed development impact fee schedule - 30 days before adoption January 20, 2026: Council adoption of new development impact fee schedule April 6, 2026: New development impact fees become effective Ben Griffin, Senior Analyst from TischlerBise, will be providing a presentation to Council and will be available for any questions. Attachments TischlerBise Presentation Fountain Hills, Arizona June 3, 2025 Draft Land Use Assumptions, Infrastructure Improvements Plan, and Development Fees 2 Overview •Development Fee Basics •Project Timeline •Land Use Assumptions (LUA) •Infrastructure Improvements Plan (IIP) •Fire •Parks and Recreational •Street •Proposed Development Fees 3 Development Fee Basics •One-time payment for growth-related infrastructure •Collected when building permit issued •Can’t fund operations, maintenance, or replacement •Not a tax, but a contractual arrangement to build infrastructure with three requirements: •Need for infrastructure (system-level improvements, not project-level improvements) •Benefit to fee payer (service areas, accounting and expenditure controls) •Proportionate to demand •Level of Service (LOS) •May not exceed what is provided to existing development •Higher LOS must be paired with non-development fee funding source to cover existing development’s share DRAFT 4 Fee Methodologies TischlerBise | www.tischlerbise.com •Cost Recovery Approach (Past) •Future development is “buying in” to the cost the community has already incurred to provide growth-related capacity •Common in communities approaching buildout •Incremental Expansion Approach (Present) •Formula-based approach based on existing levels of service •Fee is based on the current cost to replicate existing levels of service (i.e., replacement cost) •Plan-Based Approach (Future) •Usually reflects an adopted CIP or master plan •Growth-related costs are more refined DRAFT 5 Evaluate Need for Credits •Site Specific •Developer constructs a capital facility included in fee calculations •Debt Service •Avoid double payment due to existing or future bonds •Dedicated Revenues •Property tax, local option sales tax, gas tax, etc. DRAFT 6 Arizona Legislation •Three Integrated Documents •Land Use Assumptions (LUA): 10+ years •Infrastructure Improvements Plan (IIP): limited to 10 years •Development Fees: updated every 5 years •Limitations on Necessary Public Services •Parks: 30 acres unless direct benefit to development •Public Safety: No regional training facilities •Useful life of 3 or more years DRAFT 7 Project Timeline •January 2025: Project Initiation Meeting •June 3: Work Session •July 1: Advertise (60 days) •TBD: Stakeholder Outreach •September 16: Public Hearing (30 days) •October 21: Adoption •October 22: Advertise (30 days) •November 25: Public Hearing (30 days) •January 20, 2026: Adoption (75 days) •April 6: Fees Effective Land Use Assumptions (LUA) & Infrastructure Improvements Plan (IIP) Development Fees DRAFT 8 Single-Family1 20,644 9,249 2.23 10,781 1.91 81.0%14.21% Multi-Family2 2,894 1,828 1.58 2,528 1.14 19.0%27.69% Total 23,538 11,077 2.12 13,309 1.77 100.0%16.77% Source: U.S. Census Bureau, 2019-2023 American Community Survey 5-Year Estimates 1. Includes detached, attached (townhouse), and mobile home units. 2. Includes dwellings in structures with two or more units, RVs, and all other units. Housing Mix Vacancy RateHousing Type Persons Households Persons per Household Housing Units Persons per Housing Unit Residential Demand Factors We use occupancy factors calculated from American Community Survey estimates to allocate demand from single-family units and multi-family units. DRAFT 9 ITE Demand Wkdy Trip Ends Wkdy Trip Ends Emp Per Square Feet Code Unit Per Dmd Unit1 Per Employee1 Dmd Unit Per Employee 110 Light Industrial 1,000 Sq Ft 4.87 3.10 1.57 637 130 Industrial Park 1,000 Sq Ft 3.37 2.91 1.16 864 150 Warehousing 1,000 Sq Ft 1.71 5.05 0.34 2,953 254 Assisted Living bed 2.60 4.24 0.61 n/a 310 Hotel room 7.99 14.34 0.56 n/a 610 Hospital 1,000 Sq Ft 10.77 3.77 2.86 350 620 Nursing Home bed 3.06 3.31 0.92 n/a 710 General Office (avg size)1,000 Sq Ft 10.84 3.33 3.26 307 720 Medical-Dental Office 1,000 Sq Ft 36.00 8.71 4.13 242 730 Government Office 1,000 Sq Ft 22.59 7.45 3.03 330 770 Business Park 1,000 Sq Ft 12.44 4.04 3.08 325 820 Shopping Center (avg size)1,000 Sq Ft 37.01 17.42 2.12 471 1. Trip Generation, Institute of Transportation Engineers, 11th Edition (2021). Land Use / Size Nonresidential Demand Factors We use vehicle trip generation rates and employment density factors published by the Institute of Transportation Engineers (ITE) to allocate demand by nonresidential land use. DRAFT We use these square feet per employee factors to convert projected employment to nonresidential floor area. 10 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 Base Year 1 2 3 4 5 6 7 8 9 10 Peak Population Total 27,883 28,129 28,375 28,621 28,868 29,114 29,360 29,606 29,852 30,098 30,345 2,462 Housing Units Single Family 10,138 10,208 10,278 10,348 10,418 10,488 10,558 10,628 10,698 10,768 10,838 700 Multi-Family 4,375 4,432 4,489 4,546 4,603 4,660 4,717 4,774 4,831 4,888 4,945 570 Total 14,513 14,640 14,767 14,894 15,021 15,148 15,275 15,402 15,529 15,656 15,783 1,270 Employment Industrial 781 781 781 781 781 781 781 781 781 781 781 0 Commercial 2,215 2,220 2,225 2,230 2,234 2,239 2,279 2,319 2,359 2,399 2,439 224 Office & Other Services 3,543 3,573 3,602 3,632 3,662 3,691 3,696 3,701 3,706 3,711 3,716 173 Institutional 962 968 973 979 985 990 995 999 1,003 1,007 1,012 50 Total 7,501 7,541 7,581 7,622 7,662 7,702 7,751 7,801 7,850 7,899 7,948 447 Floor Area / Sq Ft (x1,000) Industrial 1,162 1,162 1,162 1,162 1,162 1,162 1,162 1,162 1,162 1,162 1,162 0 Commercial 1,408 1,410 1,413 1,415 1,417 1,419 1,438 1,457 1,476 1,495 1,514 106 Office & Other Services 1,575 1,584 1,593 1,602 1,611 1,620 1,622 1,623 1,625 1,626 1,628 53 Institutional 770 772 774 776 778 779 781 782 784 785 786 16 Total 4,915 4,928 4,942 4,955 4,968 4,981 5,003 5,025 5,047 5,069 5,090 175 Fountain Hills, Arizona 10-Year Increase Development Projections DRAFT Residential: Housing units projected based on recent trends. Nonresidential: Employment based on MAG projections. 11 Fire IIP •Service Area •Citywide •Fee Components •Fire Facilities: Incremental •Fire Apparatus: Incremental •Fire Equipment: Incremental •10-Year Demand •Fire Facilities: 1,321 square feet, $1.3 million •Fire Apparatus: 0.7 units, $304,000 •Fire Equipment: 3.2 units, $16,000 DRAFT New Component 12 Demand Unit Cost per Sq Ft 0.4591 Square Feet per Person 0.4266 Square Feet per Job Residential Nonresidential Total 2025 27,883 7,501 12,800.0 3,200.0 16,000.0 2026 28,129 7,541 12,913.0 3,217.1 16,130.1 2027 28,375 7,581 13,026.0 3,234.3 16,260.3 2028 28,621 7,622 13,139.0 3,251.4 16,390.4 2029 28,868 7,662 13,252.0 3,268.6 16,520.6 2030 29,114 7,702 13,365.0 3,285.7 16,650.7 2031 29,360 7,751 13,478.0 3,306.7 16,784.8 2032 29,606 7,801 13,591.0 3,327.8 16,918.8 2033 29,852 7,850 13,704.0 3,348.8 17,052.8 2034 30,098 7,899 13,817.0 3,369.8 17,186.9 2035 30,345 7,948 13,930.0 3,390.9 17,320.9 10-Yr Increase 2,462 447 1,130.0 190.9 1,320.9 $1,130,025 $190,869 $1,320,893 Fire Facilities $1,000 Type of Infrastructure Level of Service Demand for Fire Facilities Growth-Related Expenditures Year Population Jobs Square Feet Fire Facilities – Incremental DRAFT Fountain Hills will use development fees to construct additional fire facilities. To maintain the existing level of service, Fountain Hills needs to construct 1,321 square feet of fire facilities to serve future development. We use this as a proxy for future fire facility costs. Fountain Hills currently provides 0.4591 square feet per person. Fountain Hills currently provides 0.4266 square feet per job. Description Square Feet Fire Station 1 6,400 Fire Station 2 9,600 Total 16,000 Cost per Square Foot $1,000 Existing Square Feet 16,000 Residential Share 80% 2025 Population 27,883 Square Feet per Person 0.4591 Cost per Person $459.06 Nonresidential Share 20% 2025 Jobs 7,501 Square Feet per Job 0.4266 Cost per Job $426.61 Source: Fountain Hills Fire Department Nonresidential Level-of-Service (LOS) Standards Residential Cost Factors 13 Description Units Unit Cost Total Cost Brush Truck 2 $300,000 $600,000 Command Vehicle 2 $145,000 $290,000 Engine 2 $900,000 $1,800,000 Ladder Truck 1 $950,000 $950,000 UTV 1 $45,000 $45,000 Total 8 $460,625 $3,685,000 Average Cost per Unit $460,625 Existing Units 8 Residential Share 80% 2025 Population 27,883 Units per Person 0.0002 Cost per Person $105.73 Nonresidential Share 20% 2025 Jobs 7,501 Units per Job 0.0002 Cost per Job $98.25 Source: Fountain Hills Fire Department Cost Factors Nonresidential Level-of-Service (LOS) Standards Residential Fire Apparatus – Incremental DRAFT Fountain Hills will use development fees to acquire additional fire apparatus. To maintain the existing level of service, Fountain Hills needs to acquire approximately 0.7 fire apparatus to serve future development. We use the average from existing apparatus. Fountain Hills currently provides 0.0002 units per person. Fountain Hills currently provides 0.0002 units per job. Demand Unit Cost per Unit 0.0002 Units per Person 0.0002 Units per Job Residential Nonresidential Total 2025 27,883 7,501 6.4 1.6 8.0 2026 28,129 7,541 6.5 1.6 8.1 2027 28,375 7,581 6.5 1.6 8.1 2028 28,621 7,622 6.6 1.6 8.2 2029 28,868 7,662 6.6 1.6 8.3 2030 29,114 7,702 6.7 1.6 8.3 2031 29,360 7,751 6.7 1.7 8.4 2032 29,606 7,801 6.8 1.7 8.5 2033 29,852 7,850 6.9 1.7 8.5 2034 30,098 7,899 6.9 1.7 8.6 2035 30,345 7,948 7.0 1.7 8.7 10-Yr Increase 2,462 447 0.6 0.1 0.7 $260,259 $43,959 $304,218 Fire Apparatus $460,625 Type of Infrastructure Level of Service Demand for Fire Apparatus Growth-Related Expenditures Year Population Jobs Units 14 Description Units Unit Cost Total Cost Defibrillators 25 $1,000 $25,000 Multi-Band Portable Radio 14 $12,000 $168,000 Total 39 $4,949 $193,000 Average Cost per Unit $4,949 Existing Units 39 Residential Share 80% 2025 Population 27,883 Units per Person 0.0011 Cost per Person $5.54 Nonresidential Share 20% 2025 Jobs 7,501 Units per Job 0.0010 Cost per Job $5.15 Source: Fountain Hills Fire Department Residential Nonresidential Cost Factors Level-of-Service (LOS) Standards Fire Equipment – Incremental DRAFT Fountain Hills will use development fees to acquire additional fire equipment. To maintain the existing level of service, Fountain Hills needs to acquire approximately 3.2 units of fire equipment to serve future development. Fountain Hills currently provides 0.0011 units per person. Fountain Hills currently provides 0.0010 units per job. Demand Unit Cost per Unit 0.0011 Units per Person 0.0010 Units per Job Residential Nonresidential Total 2025 27,883 7,501 31.2 7.8 39.0 2026 28,129 7,541 31.5 7.8 39.3 2027 28,375 7,581 31.8 7.9 39.6 2028 28,621 7,622 32.0 7.9 40.0 2029 28,868 7,662 32.3 8.0 40.3 2030 29,114 7,702 32.6 8.0 40.6 2031 29,360 7,751 32.9 8.1 40.9 2032 29,606 7,801 33.1 8.1 41.2 2033 29,852 7,850 33.4 8.2 41.6 2034 30,098 7,899 33.7 8.2 41.9 2035 30,345 7,948 34.0 8.3 42.2 10-Yr Increase 2,462 447 2.8 0.5 3.2 $13,631 $2,302 $15,933 Fire Equipment $4,949 Type of Infrastructure Level of Service Demand for Fire Equipment Population Jobs UnitsYear Growth-Related Expenditures We use the average from existing equipment. 15 Proposed Fire Fees DRAFT Fee Component Cost per Person Cost per Job Fire Facilities $459.06 $426.61 Fire Apparatus $105.73 $98.25 Fire Equipment $5.54 $5.15 Development Fee Report $13.84 $19.04 Total $584.17 $549.05 Single Family 2.23 $1,303 $122 $1,181 Multi-Family 1.58 $923 $94 $829 Industrial 1.57 $862 $100 $762 Commercial 2.12 $1,164 $140 $1,024 Office & Other Services 3.26 $1,790 $180 $1,610 Institutional 3.03 $1,664 $60 $1,604 1. See Land Use Assumptions Residential Fees per Unit Development Type Persons per Household1 Proposed Fees Current Fees Difference Nonresidential Fees per 1,000 Square Feet Development Type Jobs per 1,000 Sq Ft1 Proposed Fees Current Fees Difference Single Family $1,024 79% $236 18% $12 1% $31 2% $1,303 100% Fire facilities not in current IIP. This equals 79% of the proposed fee. 16 Parks and Recreational IIP •Service Area •Citywide •Fee Components •Developed Park Land: Incremental •Park Amenities: Incremental •10-Year Demand •Developed Park Land: 8.6 acres, $344,000 •Park Amenities: 92 units, $4.1 million DRAFT 17 Description Total Acres Developed Acres Eligible Acres Avenue Linear Park 3.0 3.0 3.0 Desert Botanical Garden 8.0 8.0 8.0 Desert Vista Park 12.0 12.0 12.0 Fountain Park 65.0 32.0 32.0 Four Peaks Park 16.0 16.0 16.0 Golden Eagle Park 25.0 25.0 25.0 Golden Eagle Trailhead 0.4 0.4 0.0 McDowell Mtn. Preserve 822.0 2.0 2.0 Total 951.4 98.4 98.0 Developed Cost per Acre1 $40,000 Existing Eligible Acres 98.0 Residential Share 98% 2025 Population 27,883 Eligible Acres per Person 0.00344 Cost per Person $137.78 Nonresidential Share 2% 2025 Jobs 7,501 Eligible Acres per Job 0.00026 Cost per Job $10.45 Source: Fountain Hills Parks and Recreation Department 1. Includes infrastructure costs but excludes acquisition costs. Cost Factors Level-of-Service (LOS) Standards Residential Nonresidential Developed Park Land – Incremental DRAFT Fountain Hills will use development fees to develop additional park land.To maintain the existing level of service, Fountain Hills needs to develop approximately 8.6 park acres to serve future development. Fountain Hills currently provides 0.00344 eligible acres per person. Fountain Hills currently provides 0.00026 eligible acres per job. This does not include land acquisition. Demand Unit Cost per Acre 0.00344 Eligible Acres per Person 0.00026 Eligible Acres per Job Residential Nonresidential Total 2025 27,883 7,501 96.0 2.0 98.0 2026 28,129 7,541 96.9 2.0 98.9 2027 28,375 7,581 97.7 2.0 99.7 2028 28,621 7,622 98.6 2.0 100.6 2029 28,868 7,662 99.4 2.0 101.4 2030 29,114 7,702 100.3 2.0 102.3 2031 29,360 7,751 101.1 2.0 103.2 2032 29,606 7,801 102.0 2.0 104.0 2033 29,852 7,850 102.8 2.1 104.9 2034 30,098 7,899 103.7 2.1 105.7 2035 30,345 7,948 104.5 2.1 106.6 10-Yr Increase 2,462 447 8.5 0.1 8.6 $339,149 $4,676 $343,825 Type of Infrastructure Level of Service Developed Park Land $40,000 Demand for Developed Park Land Year Population Jobs Eligible Acres Growth-Related Expenditures 18 Description Units Unit Cost Total Cost Picnic Table 110 $3,500 $385,000 Playground (2-5 years)4 $125,000 $500,000 Playground (5+ years)4 $230,000 $920,000 Ramada (with picnic table)21 $84,000 $1,764,000 Recycle 24 $600 $14,400 Restroom 21 $420,000 $8,820,000 Sand Volleyball 2 $24,000 $48,000 Scoreboard 4 $8,000 $32,000 Shade Structure <100 ksf 18 $50,000 $900,000 Shade Structure >100 ksf 5 $100,000 $500,000 Shower 1 $4,000 $4,000 Sign Kiosk 11 $4,000 $44,000 Skate Park 1 $1,089,000 $1,089,000 Soccer Goal 6 $2,500 $15,000 Specialty Play 2 $100,000 $200,000 Splash Pad 1 $860,000 $860,000 Tennis Court 6 $170,000 $1,020,000 Trash Receptacle 166 $600 $99,600 Veteran's Memorial 1 $900,000 $900,000 Walking Track/Trail 6 $95,000 $570,000 Water Feature 6 $15,000 $90,000 Wayfinding Signage 8 $200 $1,600 Total 1,052 $44,498 $46,811,800 Park Amenities – Incremental DRAFT Existing Park Amenities We use the average cost of existing amenities as a proxy for future costs. Description Units Unit Cost Total Cost Baseball/Softball Field 6 $725,000 $4,350,000 Basketball Court 3 $120,000 $360,000 Bench 101 $2,500 $252,500 Bike Rack 46 $300 $13,800 Bleachers 29 $3,000 $87,000 Bridge (Pedestrian)2 $1,000,000 $2,000,000 Building 11 $400,000 $4,400,000 Disc Golf Course 1 $15,300 $15,300 Dog Park 1 $650,000 $650,000 Drinking Fountain 22 $3,000 $66,000 Dugout Bench 15 $1,000 $15,000 Entry Monument Signage 9 $20,000 $180,000 Exercise Equipment Area 2 $40,000 $80,000 FIT Trail Trailhead 2 $100,000 $200,000 Grill 12 $400 $4,800 Horseshoe Pit 1 $2,500 $2,500 Interpretive Signage 14 $1,000 $14,000 Light Bollard 291 $2,000 $582,000 Multi-Use Sports Field 4 $475,000 $1,900,000 Parking Lot 11 $526,000 $5,786,000 Passive Lawn/Recreation 14 $475,000 $6,650,000 Pet Station 21 $300 $6,300 Pickleball Court 6 $70,000 $420,000 19 Average Cost per Unit $44,498 Existing Units 1,052 Residential Share 98% 2025 Population 27,883 Units per Person 0.0370 Cost per Person $1,645.29 Nonresidential Share 2% 2025 Jobs 7,501 Units per Job 0.0028 Cost per Job $124.81 Source: Fountain Hills Parks and Recreation Department Nonresidential Level-of-Service (LOS) Standards Residential Cost Factors Demand Unit Cost per Unit 0.0370 Units per Person 0.0028 Units per Job Residential Nonresidential Total 2025 27,883 7,501 1,031.0 21.0 1,052.0 2026 28,129 7,541 1,040.1 21.2 1,061.2 2027 28,375 7,581 1,049.2 21.3 1,070.4 2028 28,621 7,622 1,058.3 21.4 1,079.6 2029 28,868 7,662 1,067.4 21.5 1,088.9 2030 29,114 7,702 1,076.5 21.6 1,098.1 2031 29,360 7,751 1,085.6 21.7 1,107.3 2032 29,606 7,801 1,094.7 21.9 1,116.6 2033 29,852 7,850 1,103.8 22.0 1,125.8 2034 30,098 7,899 1,112.9 22.2 1,135.0 2035 30,345 7,948 1,122.0 22.3 1,144.3 10-Yr Increase 2,462 447 91.0 1.3 92.3 $4,050,041 $55,843 $4,105,884Growth-Related Expenditures Type of Infrastructure Level of Service Demand for Park Amenities Year Population Jobs Units Park Amenities $44,498 Park Amenities – Incremental DRAFT Fountain Hills will use development fees to construct additional park amenities. To maintain the existing level of service, Fountain Hills needs to construct approximately 92 park amenities to serve future development. Average cost of existing amenities. Fountain Hills currently provides 0.0370 units per person. Fountain Hills currently provides 0.0028 units per job. 20 Proposed Parks and Recreational Fees DRAFT Fee Component Cost per Person Cost per Job Developed Park Land $137.78 $10.45 Park Amenities $1,645.29 $124.81 Development Fee Report $16.96 $1.90 Total $1,800.03 $137.16 Single Family 2.23 $4,014 $1,916 $2,098 Multi-Family 1.58 $2,844 $1,479 $1,365 Industrial 1.57 $215 $560 ($345) Commercial 2.12 $291 $810 ($519) Office & Other Services 3.26 $447 $1,030 ($583) Institutional 3.03 $416 $320 $96 1. See Land Use Assumptions Current Fees Difference Current Fees Difference Nonresidential Fees per 1,000 Square Feet Jobs per 1,000 Sq Ft1 Proposed Fees Persons per Household1 Proposed FeesDevelopment Type Development Type Residential Fees per Unit 21 Street IIP •Service Area •Citywide •Fee Components •Street Improvements: Plan Based •10-Year Demand •Street Improvements: 3.94 lane miles, $29.3 million •Growth Share: $8.8 million (includes $900k fund balance) •MAG Share: $20.5 million (70% funding) DRAFT 22 Development Dev ITE Weekday Local Trip Weekday Type Unit Code Veh Trips Trip Length Length Adj VMT Single Family HU 210 5.30 5.6210 120%35.75 Multi-Family HU 220 2.57 5.6210 120%17.32 Industrial KSF 110 2.44 5.6210 76%10.40 Commercial KSF 820 12.21 5.6210 50%34.33 Office & Other Services KSF 710 5.42 5.6210 76%23.15 Institutional KSF 610 11.30 5.6210 76%48.25 VMC Per Lane Mile 8,175 Average Trip Length (miles)5.6210 Base 1 2 3 4 5 10 10-Year 2025 2026 2027 2028 2029 2030 2035 Increase Single-Family Units 10,138 10,208 10,278 10,348 10,418 10,488 10,838 700 Multi-Family Units 4,375 4,432 4,489 4,546 4,603 4,660 4,945 570 Industrial KSF 1,162 1,162 1,162 1,162 1,162 1,162 1,162 0 Commercial KSF 1,408 1,410 1,413 1,415 1,417 1,419 1,514 106 Office & Other KSF 1,575 1,584 1,593 1,602 1,611 1,620 1,628 53 Institutional KSF 770 772 774 776 778 779 786 16 Single Family Trips 53,729 54,100 54,471 54,842 55,213 55,584 57,439 3,710 Multi-Family Trips 11,232 11,379 11,525 11,671 11,818 11,964 12,696 1,463 Residential Trips 64,962 65,479 65,996 66,514 67,031 67,548 70,135 5,173 Industrial Trips 2,830 2,830 2,830 2,830 2,830 2,830 2,830 0 Commercial Trips 17,196 17,224 17,252 17,280 17,308 17,336 18,487 1,290 Office & Other Trips 8,535 8,584 8,634 8,683 8,732 8,782 8,823 288 Institutional Trips 8,698 8,719 8,740 8,761 8,782 8,803 8,883 185 Nonresidential Trips 37,259 37,357 37,456 37,554 37,653 37,751 39,023 1,764 Total Vehicle Trips 102,221 102,836 103,452 104,068 104,684 105,299 109,158 6,937 VMT 572,217 576,086 579,955 583,824 587,693 591,562 612,763 40,546 Lane Miles 70.00 70.47 70.94 71.42 71.89 72.36 74.96 4.96 Fountain Hills, Arizona Travel Demand Fountain Hills currently provides 70.0 lane miles of arterials to existing development. To maintain the existing level of service, Fountain Hills needs to construct approximately 4.96 lane miles to serve future development. Fountain Hills plans to construct 3.94 lane miles of arterials. DRAFT 23 Development Dev ITE Weekday Local Trip Weekday Type Unit Code Veh Trips Trip Length Length Adj VMT Single Family HU 210 5.30 4.4653 120%28.40 Multi-Family HU 220 2.57 4.4653 120%13.76 Industrial KSF 110 2.44 4.4653 76%8.26 Commercial KSF 820 12.21 4.4653 50%27.27 Office & Other Services KSF 710 5.42 4.4653 76%18.39 Institutional KSF 610 11.30 4.4653 76%38.33 VMC Per Lane Mile 8,175 Average Trip Length (miles)4.4653 Base 1 2 3 4 5 10 10-Year 2025 2026 2027 2028 2029 2030 2035 Increase Single-Family Units 10,138 10,208 10,278 10,348 10,418 10,488 10,838 700 Multi-Family Units 4,375 4,432 4,489 4,546 4,603 4,660 4,945 570 Industrial KSF 1,162 1,162 1,162 1,162 1,162 1,162 1,162 0 Commercial KSF 1,408 1,410 1,413 1,415 1,417 1,419 1,514 106 Office & Other KSF 1,575 1,584 1,593 1,602 1,611 1,620 1,628 53 Institutional KSF 770 772 774 776 778 779 786 16 Single Family Trips 53,729 54,100 54,471 54,842 55,213 55,584 57,439 3,710 Multi-Family Trips 11,232 11,379 11,525 11,671 11,818 11,964 12,696 1,463 Residential Trips 64,962 65,479 65,996 66,514 67,031 67,548 70,135 5,173 Industrial Trips 2,830 2,830 2,830 2,830 2,830 2,830 2,830 0 Commercial Trips 17,196 17,224 17,252 17,280 17,308 17,336 18,487 1,290 Office & Other Trips 8,535 8,584 8,634 8,683 8,732 8,782 8,823 288 Institutional Trips 8,698 8,719 8,740 8,761 8,782 8,803 8,883 185 Nonresidential Trips 37,259 37,357 37,456 37,554 37,653 37,751 39,023 1,764 Total Vehicle Trips 102,221 102,836 103,452 104,068 104,684 105,299 109,158 6,937 VMT 454,567 457,641 460,714 463,787 466,861 469,934 486,776 32,209 Lane Miles 55.60 55.98 56.36 56.73 57.11 57.48 59.54 3.94 Fountain Hills, Arizona Travel Demand (Adjusted) To achieve the planned level of service, Fountain Hills plans to construct 3.94 lane miles to serve future development. The analysis includes a downward adjustment. This reduces the existing level of service to match demand for fewer lane miles. DRAFT 24 Eligible Cost $8,793,382 May 2025 Fund Balance ($900,000) Adjusted Cost $7,893,382 Lane Miles 3.94 Adjusted Cost per Lane Mile $2,003,396 Adjusted Lane Miles 55.60 2025 VMT 454,567 Lane Miles per 10,000 VMT 1.2232 Cost per VMT $245.06 Source: Fountain Hills Public Works Department Level-of-Service (LOS) Standards Cost Factors Project Miles Lanes Lane Miles Lanes Lane Miles Total Cost Other Funding Eligible Cost Shea Boulevard (Palisades to FH Blvd)0.94 5 4.70 1 0.94 $6,276,218 $4,393,353 $1,882,865 Shea Boulevard (FH Blvd to Technology Dr)1.50 4 6.00 2 3.00 $23,035,055 $16,124,539 $6,910,517 Total 2.44 10.70 3.94 $29,311,273 $20,517,891 $8,793,382 Source: Fountain Hills Public Works Department Existing New Street Improvements (Plan-Based) Fountain Hills plans to construct 3.94 lane miles of arterials. We deduct the existing fund balance already collected for Shea Blvd (Palisades to FH Blvd) from the eligible cost. We use $2.0 million per lane mile. Other Funding is 70% MAG share. DRAFT The current IIP uses $795k per lane mile. 25 Fee Component Cost per VMT Street Improvements $245.06 Development Fee Report $1.33 Total $246.39 Avg Wkdy VMT per Unit1 Single Family 28.40 $6,997 $1,935 $5,062 Multi-Family 13.76 $3,390 $964 $2,426 Avg Wkdy VMT per 1,000 Sq Ft1 Industrial 8.26 $2,035 $630 $1,405 Commercial 27.27 $6,719 $2,860 $3,859 Office & Other Services 18.39 $4,531 $1,240 $3,291 Institutional 38.33 $9,444 $2,480 $6,964 1. See Land Use Assumptions Nonresidential Fees per 1,000 Square Feet Development Type Proposed Fees Current Fees Difference Development Type Proposed Fees Current Fees Difference Residential Fees per Unit Proposed Street Fees DRAFT 26 $8,341 $4,620 $1,822 $4,364 $4,318 $8,664 Difference Difference Single Family $1,303 $4,014 $6,997 $12,314 Multi-Family $923 $2,844 $3,390 $7,157 Industrial $862 $215 $2,035 $3,112 Commercial $1,164 $291 $6,719 $8,174 Office & Other Services $1,790 $447 $4,531 $6,768 Institutional $1,664 $416 $9,444 $11,524 Proposed Fees Residential Fees per Unit Nonresidential Fees per 1,000 Square feet Parks & Recreational Street Proposed Fees Development Type Development Type Parks & Recreational StreetFire Fire Proposed Fee Summary Single Family $122 $1,916 $1,935 $3,973 Multi-Family $94 $1,479 $964 $2,537 Industrial $100 $560 $630 $1,290 Commercial $140 $810 $2,860 $3,810 Office & Other Services $180 $1,030 $1,240 $2,450 Institutional $60 $320 $2,480 $2,860 Nonresidential Fees per 1,000 Square feet Development Type Parks & Recreational Street Current FeesFire Current Fees Residential Fees per Unit Development Type Parks & Recreational StreetFire Proposed Fees Current Fees DRAFT 27 Single-Family Fee Comparison DRAFT Single-Family Unit Fees Effective Fire Library Park Police Street Other Non-Utility Water Water Resource Waste- water Utility Total Gilbert 2024 $1,447 $0 $9,358 $1,138 $4,764 $0 $16,707 $8,310 $5,826 $4,467 $18,603 $35,310 Phoenix - NW (Proposed)2025 $1,282 $216 $1,409 $348 $2,330 $0 $5,585 $18,433 $2,009 $8,951 $29,393 $34,978 Phoenix - NE (Proposed)2025 $1,165 $133 $1,474 $348 $2,330 $0 $5,450 $18,433 $2,009 $8,951 $29,393 $34,843 Peoria - West 2024 $1,415 $0 $2,041 $1,034 $10,349 $0 $14,839 $6,318 $936 $8,968 $16,222 $31,061 Phoenix - Deer Valley (Proposed)2025 $1,282 $216 $1,409 $348 $2,330 $0 $5,585 $18,433 $2,009 $1,190 $21,632 $27,217 Buckeye - Central 2025 $1,762 $605 $3,119 $1,657 $1,597 $0 $8,740 $9,536 $0 $7,524 $17,060 $25,800 Peoria - North 2024 $1,415 $0 $2,667 $1,034 $7,417 $0 $12,533 $3,038 $936 $7,346 $11,320 $23,853 Fountain Hills (Proposed)2026 $1,303 $0 $4,014 $0 $6,997 $0 $12,314 $0 $0 $10,000 $10,000 $22,314 Surprise - SPA 2 2024 $1,737 $0 $1,800 $581 $0 $208 $4,326 $5,296 $3,649 $9,003 $17,948 $22,274 Apache Junction 2022 $0 $550 $1,707 $1,229 $3,250 $0 $6,736 $7,590 $3,486 $4,295 $15,371 $22,107 Surprise - SPA 3 2024 $1,737 $0 $1,800 $581 $0 $208 $4,326 $3,142 $3,649 $9,108 $15,899 $20,225 Surprise - SPA 4 2024 $1,737 $0 $1,800 $581 $0 $208 $4,326 $2,966 $3,649 $9,190 $15,805 $20,131 Chandler 2024 $308 $61 $5,242 $74 $3,792 $110 $9,587 $2,460 $1,094 $5,989 $9,543 $19,130 Goodyear - South 2024 $1,647 $0 $728 $1,198 $0 $0 $3,573 $8,836 $0 $5,918 $14,754 $18,327 Surprise - SPA 1 2024 $1,737 $0 $1,800 $581 $0 $208 $4,326 $5,325 $3,649 $4,481 $13,455 $17,781 Buckeye - Tartesso West 2025 $875 $605 $1,655 $1,657 $527 $0 $5,319 $3,723 $0 $7,672 $11,395 $16,714 Goodyear - North 2024 $1,647 $0 $1,360 $1,198 $0 $0 $4,205 $8,317 $0 $3,886 $12,203 $16,408 Phoenix - NW (Current)2020 $516 $105 $1,368 $293 $3,080 $0 $5,362 $6,330 $583 $3,303 $10,216 $15,578 Phoenix - NE (Current)2020 $551 $105 $1,236 $314 $3,080 $0 $5,286 $6,330 $583 $3,303 $10,216 $15,502 Glendale - East (Proposed)2025 $850 $355 $1,194 $702 $4,270 $0 $7,371 $3,330 $0 $3,795 $7,125 $14,496 Avondale 2023 $2,184 $0 $1,697 $2,089 $1,790 $0 $7,760 $3,519 $0 $3,153 $6,672 $14,432 Fountain Hills (Current)2020 $122 $0 $1,916 $0 $1,935 $0 $3,973 $0 $0 $10,000 $10,000 $13,973 Glendale - East (Current)2020/2024 $655 $195 $936 $719 $4,270 $0 $6,775 $3,330 $0 $3,795 $7,125 $13,900 Phoenix - Deer Valley (Current)2020 $516 $105 $1,368 $293 $3,080 $0 $5,362 $6,330 $583 $1,380 $8,293 $13,655 Queen Creek 2023 $1,175 $0 $3,189 $640 $2,118 $0 $7,122 $2,382 $0 $2,901 $5,283 $12,405 Maricopa - South 2024 $2,650 $248 $791 $613 $5,942 $0 $10,244 $0 $0 $0 $0 $10,244 Maricopa - North 2024 $946 $248 $791 $613 $5,942 $0 $8,540 $0 $0 $0 $0 $8,540 Glendale - West (Proposed)2025 $850 $355 $1,194 $702 $4,575 $0 $7,676 $0 $0 $0 $0 $7,676 Glendale - West (Current)2020/2024 $655 $195 $936 $719 $4,575 $0 $7,080 $0 $0 $0 $0 $7,080 Buckeye - Festival Ranch 2025 $544 $605 $2,525 $1,657 $0 $0 $5,331 $0 $0 $0 $0 $5,331 28 $0 $5,000 $10,000 $15,000 $20,000 $25,000 $30,000 $35,000 $40,000 Gil b e r t Pho e n i x - N W ( P r o p o s e d ) Pho e n i x - N E ( P r o p o s e d ) Peo r i a - W e s t Pho e n i x - D e e r V a l l e y ( P r o p o s e d ) Buc k e y e - C e n t r a l Peo r i a - N o r t h Fou n t a i n H i l l s ( P r o p o s e d ) Sur p r i s e - S P A 2 Apa c h e J u n c t i o n Sur p r i s e - S P A 3 Sur p r i s e - S P A 4 Cha n d l e r Goo d y e a r - S o u t h Sur p r i s e - S P A 1 Buc k e y e - T a r t e s s o W e s t Goo d y e a r - N o r t h Pho e n i x - N W ( C u r r e n t ) Pho e n i x - N E ( C u r r e n t ) Gle n d a l e - E a s t ( P r o p o s e d ) Avo n d a l e Fou n t a i n H i l l s ( C u r r e n t ) Gle n d a l e - E a s t ( C u r r e n t ) Pho e n i x - D e e r V a l l e y ( C u r r e n t ) Qu e e n C r e e k Ma r i c o p a - S o u t h Ma r i c o p a - N o r t h Gle n d a l e - W e s t ( P r o p o s e d ) Gle n d a l e - W e s t ( C u r r e n t ) Buc k e y e - F e s t i v a l R a n c h Single-Family Fee Comparison Non-Utility Utility Single-Family Fee Comparison DRAFT