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HomeMy WebLinkAbout2026.0414.TCWSP - Final NOTICE OF WORK SESSION (AMENDED) OF THE TOWN COUNCIL Mayor Gerry M. Friedel Vice Mayor Gayle Earle Councilmember Peggy McMahon Councilmember Brenda J. Kalivianakis Councilmember Allen Skillicorn Councilmember Hannah Larrabee Councilmember Rick Watts TIME: WHEN: WHERE: 1:00 PM - WORK SESSION (AMENDED) TUESDAY, APRIL 14, 2026 FOUNTAIN HILLS COUNCIL CHAMBERS 16705 E. AVENUE OF THE FOUNTAINS, FOUNTAIN HILLS, ARIZONA 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. 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. 1. CALL TO ORDER 2. ROLL CALL (ORDER REVISED) 3. WORK SESSION AGENDA a. PRESENTATION: Fiscal Year 2026-2027 Proposed Budget 4. ADJOURNMENT Dated this 9th day of April, 2026. 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 AZRelay 7-1-1 the Thursday prior to the meeting to request reasonable accommodation. Meeting Packet Page 1 of 295 ITEM 3.a. TOWN OF FOUNTAIN HILLS STAFF REPORT Meeting Date: 4/14/2026 Meeting Type: Town Council Work Session (AMENDED) Submitting Department: Administration / Finance Prepared by: Paul Soldinger, Chief Financial Officer Staff Contact Information: Phone: 480-816-5160 Email: psoldinger@fountainhillsaz.gov Request to Town Council Regular Meeting (Agenda Language) PRESENTATION: Fiscal Year 2026-2027 Proposed Budget Staff Summary (background) On April 14, 2026, a proposed budget work session will be held to discuss the FY2027 Proposed Budget with the Town Council. This presentation will include an update on estimated fund balances to begin FY2027 on July 1, 2026, will discuss proposed operating budgets across departments, and the Capital Improvement Plan budget for next year. The Proposed Budget will already include a staff pay adjustment, and recommended budget supplements for the coming year, including ongoing, one-time, and personnel supplements. In total, the FY2027 Proposed Budget includes projected revenues of $38.5 million, and budgeted expenditures of $49.2 million across all funds. The Town's General Fund balanced budget includes $26.8 million of projected revenues and budgeted expenditures, which includes about $1 million of General Fund contingency budget to match budgeted expenditures with projected revenues. Finance staff have built this Proposed Budget to ensure compliance with the Town's FY2027 expenditure limitation amount of $38.2 million set by the State of Arizona. Although the Proposed Budget is higher than the expenditure limitation for next year, the Town has budgeted to use excludable revenues, such as grants, HURF, investment earnings, and other exclusions that will be discussed during the presentation. The residents and Mayor & Council may access an electronic version of the FY2027 Proposed Budget Book at the following link: FY2027 Proposed Budget Book Related Ordinance, Policy or Guiding Principle N/A Risk Analysis N/A Recommendation(s) by Board(s) or Commission(s) N/A Staff Recommendation(s) N/A Suggested Motion N/A Meeting Packet Page 2 of 295 FISCAL IMPACT Fiscal Impact: Budget Reference: Funding Source: ATTACHMENTS 1. FY2027 Proposed Budget Book 2. FY27 Proposed Budget Presentation - 4.14.2026 - Final Meeting Packet Page 3 of 295 Town of Fountain Hills Fiscal Year 2027 Proposed Budget Proposed Version - 04/14 /2026 Meeting Packet Page 4 of 295 TABLE OF CONTENTS Reader's Guide 4 Introduction 6 Budgeting Process 7 History of the Town 10 Supplemental Requests 12 Executive Summary 16 Funds Summary Overview 18 All Funds Summary 21 General Fund 34 Streets Fund 43 Capital Projects Fund 49 Facilities Reserve Fund 54 Special Revenue Fund 59 Economic Development Funds 64 All NonMajor Funds 73 Funding Sources Overview 83 Transaction Privilege Taxes (All Funds) Summary 84 State Shared Revenues - General Fund 90 State Shared Revenues - Streets Fund 93 Other Revenues - Licenses and Permits 95 Other Revenues - Leases and Rents 100 Other Revenues - Charges for Services 102 Other Revenues - Fines and Forfeitures 105 Investment Earnings 108 Other Revenues - Misc 113 Departments Summary 116 Mayor and Council 118 Administration 121 Town Manager 126 Town Clerk 129 Administrative Services 132 Finance 135 Information Technology 139 Purchasing 142 Public Information 145 Economic Development 149 Legal Services 155 General Government 158 Municipal Court 161 Public Works 165 Development Services 172 Community Services 178 Fire and Emergency Medical Services 185 Meeting Packet Page 5 of 295 Law Enforcement 189 Capital Improvement Plan 192 One Year Plan 193 Multi-Year Plan 195 Capital Projects 197 Community Services 199 Avenue Linear Park Improvements 201 Community Center - Turf Improvement and Fitness Area 203 Desert Vista Park - Skate Park Slope Improvements 205 Desert Vista Pump House 207 Fountain Park - Turf Reduction, Grade and Drainage Work, and Event Usage Improvement 209 Fountain Park Bollard Light Replacement 212 Fountain Park Lake Liner Replacement 214 Fountain Park Ramada Replacement 216 Four Peaks Electrical Building 218 Golden Eagle Park - Pump House and Storage Tank Design 221 Sierra Madre Park 224 Skyview Park - Development Fees 227 Public Works 230 Ashbrook Wash Slope Stabilization 232 Dam Sediment Removal and Improvements 234 Downtown Streetscape Improvement Program 236 Golden Eagle Impoundment Area Improvements - Phase II 240 Guardrail Replacement Town-wide 242 Library/Museum Drainage Improvements 244 Library/Museum/Community Center Air Handler Upgrades 246 Palm Tree Lighting and Electrical Upgrades on Avenue of the Fountains 248 Pedestrian Marked Crosswalks - Town-wide 250 Shea Boulevard Widening - Eastbound from Palisades Blvd to Fountain Hills Blvd - Dev 252 Sidewalk Infill and Design 254 Town Hall Campus Buildings - Roof Rehabilitation 256 Meeting Packet Page 6 of 295 Reader ’s Guide Introduction This section of the budget book includes general information about the Town, its financial and budgetary policies, the demographics of our community, the organizational structure of Town staff, as well as historical information. You should read this section of the budget book if you are interested in learning more about the Town and how it manages its finances each fiscal year. Supplemental Requests The Supplemental Requests section details all supplemental budget requests submitted by departments/divisions during the FY2027 budget process. Every Town Department/Division has the opportunity to submit supplemental budget requests for the following year. A supplemental budget request is simply a request for additional budget authority to increase services, programs or to meet a departmental need. These supplemental requests can be ongoing, one-time, or personnel and require discussion and justification for how they will bring value to the residents of the Town of Fountain Hills. Executive Summary This section of the budget book provides an overall summary of the FY2027 proposed budget compared to historical data, and discusses the Town's Strategic Plan, budget timeline, priorities and issues, as well as short-term factors considered throughout the budget process. Funds Summary Overview This section details the FY2027 budget for all the Town's funds. Each major fund is separately presented, including the following funds: General Fund Streets Fund Capital Projects Fund Facilities Reserve Fund Special Revenue Fund Economic Development Funds (3 funds presented combined) Economic Development Fund Downtown Strategy Fund Tourism Fund All 10 non-major funds are combined into their own page, and the charts break out the budgeted amounts by fund. This section is the main overview of the FY2027 budget. Table of ContentsReader's Guide FY27 Proposed Budget | Fountain Hills Page 4Meeting Packet Page 7 of 295 Funding Sources Overview The Funding Sources Overview section provides detailed information about the Town's revenue sources. This section breaks out different types of revenues within each of the Town's funds, and you are able to review the following: Local sales taxes (Transaction Privilege Taxes - TPT) State Shared Revenues General Fund Streets Fund Other Revenues (across funds) Investment Earnings Local sales taxes and State Shared revenues make up most of the Town's revenues each year. Departments Summary The Departments Summary section details the FY2027 budget from a different perspective. Most of the Town's departments/divisions operate directly out of the General Fund, but certain departments/divisions also operate out of other funds. This section presents each department/division's budget and breaks out operating budgets across relevant funds. Capital Improvement Plan and Capital Projects The next two sections detail the Town's Capital Improvement Plan (CIP) with a 5-year outlook for planning and funding purposes. The Capital Improvement Plan section provides an overview of the projected costs by funding source and department. The Capital Projects section provides details of all the proposed capital projects included in the FY2027 budget. Specifically, you can review the details of each proposed project as well as pictures/illustrations submitted by the Public Works and Community Services departments.  Debt Services Overview The Debt Services Overview section details past long-term debt issued and paid off by the Town. The Town of Fountain Hills does not currently have any debt, which means the Town will not levy secondary property taxes in FY2027. Table of ContentsReader's Guide FY27 Proposed Budget | Fountain Hills Page 5Meeting Packet Page 8 of 295 Transmittal Letter Rachael Goodwin, Town Manager  Honorable Mayor, Council and Residents, I am pleased to present the proposed budget for Fiscal Year 2026-27, covering the period of July 1, 2026, to June 30, 2027. This balanced budget represents the collective conversations and direction received from Council, setting a plan for next fiscal year. As we've discussed, plans often change along the way, but the proposed budget is a critical step in planning for the coming year to be prepared for providing important levels of service for our Town residents. The proposed overall budget for FY 2026-27 is $49.2 million, which includes $26.8 million, for the General Fund. The General Fund is the primary fund for most Town operations, and seventeen other funds incorporating additional personnel, capital projects, special projects, and operating programs are included in the proposal. The Town of Fountain Hills is committed to continued transparency and financial stability. The Town publishes its tentative budget in the local newspaper and holds open public workshops, and will hold a public hearing on the budget in June 2026. In addition, both the proposed and adopted budgets will be presented on the Town's website using the ClearGov budgeting platform for greater transparency and navigation. The Fiscal Year 2026-27 Budget serves as a fiscally responsible plan and a foundational basis for the Town’s annual operations. I would like to thank the Mayor and Town Council for their direction and support throughout the development of this proposed budget. In addition, I would like to thank Town staff members for their efforts and hard work in preparing this budget for the Council’s consideration. Respectfully submitted, Rachael Goodwin Town Manager Table of ContentsIntroduction FY27 Proposed Budget | Fountain Hills Page 6Meeting Packet Page 9 of 295 Budgeting Process Mission of the Budget Process Communication and involvement with citizens and other stakeholders is stressed. The broad nature of the budget mission allows issues to be addressed that have limited the success of budgeting in the past. Apathy is a serious illness of government; it is in the best interests of the local government to have involved stakeholders. Each year, the Town of Fountain Hills budget is developed from the Town Council’s priorities by Administration and various departments. Meetings with each Department, the Town Manager and the Finance Division are held during the months of January/February. After these meetings are completed, a proposed Town-wide balanced budget is prepared for submission to the full Town Council and public in April after various public work session meetings discussing budgetary priorities. Recommended Budget Practices The Town of Fountain Hills budget process is designed to meet stakeholders’ needs for information and input; decision makers’ needs for information and advice from residents on their desired levels of services; and the timeline set by the State of Arizona through the Arizona Revised Statutes. The Town of Fountain Hills budget process incorporates the recommended practices promulgated by the Government Finance Officers Association (GFOA). Concurrently, Town staff apply diligent effort to improving the processes, decisions and outcomes with each new budget year.  Budget Definition All cities and towns in Arizona are required to adopt an annual budget. State law dictates that fiscal years begin on July 1 and end on June 30. Certain parts of the budget document, such as summaries of revenues and expenditures showing two years of spending history, are required by State law. A budget process following best practices is characterized by several essential features: Incorporates a long-term perspective Establishes linkages to broad goals Focuses on budget decisions on results and outcomes Involves and promotes effective communication with stakeholders Provides incentives to government management and employees These key characteristics of good budgeting make clear that the budget process is not simply an exercise in balancing revenues and expenditures one year at a time, but is strategic in nature, encompassing a multi-year financial and operating plan that allocates resources on the basis of identified goals. A good budget process moves beyond the traditional concept of line-item expenditure control, providing incentives and flexibility to managers that can lead to improved program efficiency and effectiveness. Principles and Elements of the Budget Process The budget process consists of four broad principles that stem from the definition and mission previously described. These principles are as follows: 1. A government should have broad goals that provide overall direction for the government and serve as a basis for decision-making. Table of ContentsBudgeting Process FY27 Proposed Budget | Fountain Hills Page 7Meeting Packet Page 10 of 295 2. A government should have specific policies, plans, programs and management strategies to define how it will achieve its long-term goals. 3. A financial plan and budget that moves toward Town achievement of goals, within the constraints of available resources, should be prepared and adopted. 4. Program and financial performance should be continually evaluated, and adjustments made, to encourage progress toward achieving goals. These principles encompass many functions that spread across a governmental organization. They reflect the fact that the development of a balanced budget is a political and managerial process that also has financial and technical dimensions. Each of the principles of the budget process incorporates components or elements that represent achievable results. These elements help translate the guiding principles into action components. Individual budgetary practices are derived from these elements. The principles and elements provide a structure to categorize budgetary practices. When does the “budget season” start? The budget process typically begins in December or January when the Finance Division begins to review current levels of service, Council goals and objectives as identified at the annual Council retreat, proposed capital improvements, and financial forecasts. In reality, the Town's budget process is a year-round process. Throughout the fiscal year, residents and staff submit suggestions for new ser vices, regulations, funding sources, and improved service delivery, as well as concerns to the Town Council and Commissions for discussion, study, and/or implementation. Commissions may develop suggested plans for new or enhanced programs to be included in the following year ’s budget proposal. Implementing, Monitoring, and Amending the Budget A budget is an annual planning tool — it identifies the Town’s work plan and matches the financial, material, and human resources available with the requirements to complete the work plan. The budget includes information about the organization and identifies the Council policy that directed the budget preparation. Although a budget is often discussed as a financial document, the financial por tion means very little without the policy and administrative information that explains what the organization intends to do with the financial resources. In July, the Town staff begin the process of implementing the newly adopted budget and are accountable for budgetary control throughout the fiscal year. Revenue and expenditure patterns are examined, compared to budget plans, and corrective action, if necessary, is taken during the fiscal year. Town management has access to a monthly budget and activity report; the Town Council is provided a summary presentation of actual revenues compared to projections to ensure the Town's budget continues to be fiscally sound. The Town of Fountain Hills budget is adopted at a Department level and the Capital Improvement Program is adopted at a project level. Control of each legally adopted annual budget is at the Department level; the Town Manager may, at any time, transfer any unencumbered appropriation balance or portion thereof between general classifications of expenditure (line items) within a Department. The items are reduced by a like amount. At the request of the Town Manager, the Council may transfer any unencumbered appropriation balance or portion thereof between funds. Pursuant to Arizona Revised Statutes, “No expenditure shall be made for a purpose not included in such budget...”. Thus, a contingency line item is included within the General Fund to accommodate most unplanned expenditures. The other option in amending the budget, according to State law, is for the Council to declare an emergency and then transfer the monies from one line item or Department to another. In essence, any approved Council transfers do amend the budget. Which funds are included in this budget? Table of ContentsBudgeting Process FY27 Proposed Budget | Fountain Hills Page 8Meeting Packet Page 11 of 295 The accounts of the Town are organized on the basis of funds, each of which is considered a separate accounting entity. Government resources are allocated to and accounted for in individual funds based on the purposes for which they are to be spent and the means by which spending activities are controlled. The Town of Fountain Hills appropriates all funds in its budget process: General Fund – revenues and expenditures to carry out basic governmental activities such as police and fire, recreation, planning, legal services, administrative services, etc. (unrestricted). Special Revenue Funds – revenues derived from specific taxes or other earmarked revenue sources, usually required by statute or ordinance to finance particular activities. The Streets (HURF) Fund, grants, and the Excise Tax Funds (such as the Economic Development and Downtown Strategy funds) are examples of special revenue funds. Debt Service Funds – established to account for the accumulation of resources for, and the payment of, general long-term debt principal and interest. The Municipal Property Corporation (MPC) fund is included within the debt service funds. Capital Projects Funds – to account for the purchase or construction of major capital facilities, park improvements and major road improvements. The Capital Projects Fund revenues are derived from excess General Fund revenues and 50% of the construction-related local sales tax. These funds also include the Facilities Reser ve Fund and the Development Impact Fee Funds (for Streets, Fire, and Parks). When can a citizen have input into the budget process? Town staff welcomes comments and suggestions throughout the year. The first opportunity for the Town Council to contribute to the budget is during the Council Budget Retreat Work Session in February, which is typically held around the beginning of the calendar year. Around March, the Finance Division holds a budget open house to discuss next year's priorities and revenue outlook, where the public is welcome to attend and ask any questions they have about the Town's finances and budget process. The proposed budget will be presented to the public and Town Council in April. This meeting is the opportunity to increase the budget for the next fiscal year before the maximum spending amount is established. Once the maximum spending amount is adopted as the tentative budget, line items can only be exchanged or decreased prior to the budget’s final adoption in June. The final budget adoption in June includes a public hearing when the Town Council may hear the public comments on the budget. State of the Town 2026 Mayor Friedel Speaking to Town Residents FY2027 Budget Town Hall March 11, 2026 - Held in Council Chambers Table of ContentsBudgeting Process FY27 Proposed Budget | Fountain Hills Page 9Meeting Packet Page 12 of 295 History of the Town of Fountain Hills The Town of Fountain Hills is a master-planned community established in 1970 by McCulloch Properties (now MCO Properties, Inc .). Prior to 1970, the area was a cattle ranch and was part of one of the largest land and cattle holdings in Arizona. The land was purchased by Robert McCulloch in the late 1960s and the community was designed by Charles Wood, Jr. (designer of Disneyland in southern California). The centerpiece of Fountain Hills is one of the world's tallest man-made fountains, a focal point that attracts thousands of visitors each year. Located on 13,006 acres of land, Fountain Hills is surrounded by the McDowell Mountains and Scottsdale on the West, the Fort McDowell Yavapai Nation on the East, the Salt River Pima-Maricopa Indian Community on the South, and by the McDowell Mountain Regional Park on the North. The elevation is 1,520 feet at the fountain, 2,460 feet at the Adero Canyon Trailhead, and is approximately 500 feet above Phoenix. Over the past thirty years, Fountain Hills has grown from 10,030 residents to a town of about 24 ,000 in 2026. On June 5, 2006, the Town of Fountain Hills became twenty square miles and about ten percent larger by annexing 1,300 acres of State Trust Land. The process to annex the State Trust Land occurred over a two- and-a-half-year period, and development of the land may occur in the years to come. Annexing this property into the Town ensures that its possible future development will be of the highest quality under Town standards. Thursday Concert Series Centennial Circle Irish Fest 2026 Fountain Park Table of ContentsHistory of the Town FY27 Proposed Budget | Fountain Hills Page 10Meeting Packet Page 13 of 295 The Town offers a wide range of living accommodations, from small condominium complexes to large custom homes. Fountain Hills also offers recreational and cultural programs and services that contribute to a high quality of life for its residents. The community consists of primarily residential property and open space; of the total 20.32 square miles of land, only 2.5% of the total is zoned commercial and/or industrial, 24 .7% is preserved as open space and 48.5% is residential. The Town of Fountain Hills is an Arizona municipal corporation, acting as a general law town as prescribed in the Arizona Revised Statutes. The Town was incorporated on December 5, 1989, with the governmental and administrative affairs of the Town operating under the Council-Manager form of government. Legislative authority is vested in a seven-member Town Council. The Mayor is a member of the Town Council who is directly elected by voters and chairs the Town Council meetings. The members of the Council are elected at large and serve four-year overlapping terms. The Town Council is responsible for the adoption of local ordinances, budget adoption, appointment of residents to citizen advisory committees and hiring the Town Manager. The Town Manager is responsible for the implementation of the policies of the Town Council and overall management of the Town through depar tment directors and about 106 full-time equivalent (FTE) employees. The Presiding Judge, Town Attorney, and Town Prosecutor are under the direction of the Town Council. Table of ContentsHistory of the Town FY27 Proposed Budget | Fountain Hills Page 11Meeting Packet Page 14 of 295 Supplemental Requests from Depar tments Every December, each Town Department has the opportunity to submit supplemental budget requests for the following year. A supplemental budget request is simply a request for additional budget authority to increase services, programs or to meet a departmental need. These supplemental requests can be ongoing, one-time, or personnel which require discussion and justification for how they will bring value to the residents of the Town of Fountain Hills. For the FY2027 budget, departments submitted 14 supplemental budget requests from various funding sources, and the Town Manager's recommended amounts are displayed below for Mayor and Council consideration.  Ongoing Non-Personnel Requests The following requests include all budget supplemental requests from departments for ongoing costs unrelated to staffing. Each request has been presented and discussed with the Town Manager and Finance staff and proposed budget amounts are included in the final "Manager Recommended" column. These amounts would be included in the FY2027 budget and subsequent years included in departmental base budgets moving forward, unless specifically removed. Request Title Department Revenue Source FY27 Costs Manager Recommended General Fund: ChatGPT Organization Subscription Admin General Fund $4,500 $4,500 Staffing for Inflatables at Events Comm Serv General Fund 8,300 8,300 Total General Fund:$12,800 $12,800 Economic Development Funds: Fountain Hills Promotional Materials Econ Dev Econ Dev Fund $10,000 $10,000 Ave of the Fountains Street Banners Econ Dev Downtown Fund 15,000 15,000 Downtown Videos Econ Dev Downtown Fund 10,000 10,000 Total Economic Development Funds:$35,000 $35,000 Total All Funds:$47,800 $47,800 General Fund BA-100-03 - ChatGPT Organization Subscription - $4,500 in Administration Department: Purchasing a centralized, paid business account for Town Staff to use ChatGPT is essential for boosting productivity and ensuring data security. This account allows staff to quickly automate routine tasks like drafting reports and summarizing documents, saving time and taxpayer money. It also ensures all staff have reliable, priority access to the best tools and can generate consistent, accurate content aligned with Town policies, ultimately improving municipal efficiency and public ser vice quality. BA-100-06 - Staffing for Inflatables at Events - $8,300 in Community Services Department: Beginning in FY26, the Community Services Department shifted to using paid staffing provided by our inflatable vendors. This change was prompted by the inability to fill volunteer roles for Irish Fest, and the department determined that relying on volunteers for this function was no longer sustainable. Operating inflatables requires consistent attention, physical stamina, and trained supervision, needs that our current volunteer pool often cannot meet. Additionally, vendor insurance policies require proper staffing, and failing to meet those standards can increase the Town's potential liability. To ensure safe operation, compliance with vendor requirements, and reliable support at our events, we are Table of ContentsSupplemental Requests FY27 Proposed Budget | Fountain Hills Page 12Meeting Packet Page 15 of 295 requesting an additional $8,300 in the Parks & Recreation budget for FY27. This funding will cover vendor-provided staffing for inflatable slides, obstacle courses, and rock walls at key community events. Economic Development Funds BA-310-01 - Fountain Hills Promotional Materials (Economic Development Fund) - $10,000: To provide additional budget authority to purchase promotional materials that are Fountain Hills branded items for the Arizona League of Cities and Towns Showcase, visitors to the community/town hall (Sister Cities, students), Mayor's Youth Council, etc. BA-300-01 - Avenue of the Fountains Street Banners (Downtown Strategy Fund) - $15,000: The unanimously approved 2024 Downtown Strategy, under Focus Area 4: Public Spaces/Place making, includes an implementation strategy for signage that states: “Update the existing street banners along the Avenue District.” The goal is to replace the street banners annually along the Avenue of the Fountains. BA-300-02 - Downtown Videos (Downtown Strategy Fund) - $10,000: The 2023-2026 Community Economic Development Strategy has five focus areas: Business Attraction, Business Retention and Expansion (BRE), Marketing, Strategic Partnerships and Tourism. The downtown videos will be used to highlight and promote business within the downtown with a specific emphasis on businesses that generate sales tax revenue. The project began in FY26, has been appreciated by businesses and has successful BRE and Marketing tools. One-Time Requests The following requests include all budget supplemental requests from depar tments for one-time costs unrelated to staffing. Each request has been presented and discussed with the Town Manager and Finance staff and proposed budget amounts are included in the final "Manager Recommended" column. These requests would be added to the FY2027 budget as a one-time line item and removed during the FY2028 budget process. Request Title Department Revenue Source FY27 Costs Manager Recommended Downtown Strategy Fund: Verde River Banners Econ Dev Downtown Fund $10,000 $10,000 Performance Pad - Avenue Linear ParkPublic Works Downtown Fund 50,000 40,000 Total Downtown Strategy Fund: Court Enhancement Fund: Judge Office - Furniture Refresh Muni Court Court Enh Fund $20,000 $10,000 Total Court Enhancement Fund: Vehicle Replacement Fund: #156 Vehicle Replacement Pub Works Veh Repl Fund $55,000 $55,000 #158 Vehicle Replacement Pub Works Veh Repl Fund 60,000 60,000 #159 Vehicle Replacement Comm Serv Veh Repl Fund 50,000 50,000 Total Vehicle Replacement Fund: Total All Funds: Downtown Strategy Fund 300-01 - Verde River Banners - $10,000 in Economic Development Division: Council unanimously approved the Downtown Strategy and in FY26 approved a 5-Year Downtown Streetscapes CIP. In FY26, design has begun on Verde 60,000$50,000$ 20,000$10,000$ 165,000$165,000$ 245,000$225,000$ Table of ContentsSupplemental Requests FY27 Proposed Budget | Fountain Hills Page 13Meeting Packet Page 16 of 295 River and Parkview. Construction will begin and conclude in FY27. Banners will need to be installed on the newly improved Verde River. 300-02 - Performance Pad - $40,000 in Public Works Department: This project will design and fabricate a durable, reusable performance pad at the Avenue Linear Park Water Features to provide a stable, level foundation for seasonal programming and special event elements. The improvement will replace temporary, one-season platforms with a purpose-built pad designed for repeated annual use. The pad will be engineered for expected loading, outdoor exposure, and efficient setup/removal, while maintaining an attractive appearance consistent with the park setting. This project will: - Replace short-lived temporary installations: Past temporary platforms typically lasted only one season and required repeated rebuilding and disposal. - Improves reliability: A stable, level, engineered foundation reduces shifting, uneven surfaces, and related safety concerns during public events and installations. - Reduce recurring costs and staff time: A reusable pad lowers annual material purchases and minimizes labor associated with constructing, repairing, and dismantling temporary structures. - Enhance aesthetics and professionalism: A consistent, purpose-built pad improves the appearance of seasonal setups and creates a cleaner, more polished public-facing installation area. - Support long-term event operations: Provides a repeatable, predictable foundation that improves planning and logistics for annual seasonal programming and other community events. Court Enhancement Fund 420-02 - Judge Office - Furniture Refresh - $10,000 in Municipal Court Department: The judge’s office is a professional workspace used for judicial duties, confidential meetings, and interactions with court leadership and justice partners. The current furnishings and layout are outdated and no longer meet functional or ergonomic needs. A modest office refresh will improve efficiency, organization, and comfort while maintaining a neutral, professional appearance consistent with judicial standards. The new updates will focus on functionality and durability. Vehicle Replacement Fund 810-01 - #156 Vehicle Replacement - $55,000 in the Public Works Department: Replace the 2014 Ford F-250 that has exceeded the fleet replacement standard of 10 years or 100,000 miles for light-duty trucks. Due to its age, the vehicle is becoming less reliable and more expensive to maintain. 810-02 - #158 Vehicle Replacement - $60,000 in the Public Works Department: Replace the 2014 Ford F-250 that has exceeded the fleet replacement standard of 10 years or 100,000 miles for light-duty trucks. Due to its age, the vehicle is becoming less reliable and more expensive to maintain. 810-03 - #159 Vehicle Replacement - $50,000 in Community Services Department: Replace the 2016 Ford F-150 that has exceeded the fleet replacement standard of 10 years or 100,000 miles for light-duty trucks. Due to its age, the vehicle is becoming less reliable and more expensive to maintain. Table of ContentsSupplemental Requests FY27 Proposed Budget | Fountain Hills Page 14Meeting Packet Page 17 of 295 Personnel (Ongoing) The following requests include all budget supplemental requests from departments for ongoing personnel costs for staffing. Each request has been presented and discussed with the Town Manager and Finance staff. Proposed budget amounts are included in the final "Manager Recommended" column. Request Title Department Revenue Source FY27 Costs Manager Recommended General Fund: Groundskeeper I - Part-Time Comm Serv Gen Fund $31,142 $31,142 Deputy Town Clerk Admin Gen Fund 124,133 124,133 Firefighter - 1 in FY27 (2 in Future)Fire Gen Fund 127,868 127,868 Total General Fund:$283,143 $283,143 General Fund BAP-100-01 - Groundskeeper I - Par t-Time - $31,142 in Community Services Department: This position will add a part-time (20 hours per week) employee to provide weekend coverage, allowing Parks Department staff to be available seven days per week to address maintenance needs and operational issues as they arise. During assigned shifts, the employee would perform routine Parks work under the direction of the Parks Supervisor or Parks Superintendent. The position would also serve as a point of contact for Park Attendants during events and tournaments, helping to reduce downtime, address issues promptly, and support the completion of park projects and tasks. In addition, adding this position will help manage the increased workload associated with the development and maintenance of new pocket parks. BAP-100-02 - Deputy Town Clerk - $124 ,133 in Administration Department: The Deputy Town Clerk position provides senior-level administrative and professional support to the Town Clerk and ensures continuity of legally mandated Clerk’s Office functions. This role supports the day-to-day operations of the Clerk’s Office, oversees records management for intake, organization, retention, retrieval, digitization, and lawful disposition of Town records in compliance with Arizona Public Records Law and state retention requirements and public records compliance, supports agenda and meeting management, assists with elections and campaign finance reporting, collaborates with staff, and serves as Acting Town Clerk in the absence of the Town Clerk with duties as assigned. Workload Impact: The addition of 1.0 FTE Deputy Town Clerk addresses increased regulatory complexity, workload volume, and operational risk within the Clerk’s Office. The position provides essential redundancy for statutory functions subject to strict legal timelines, including public records requests, Open Meeting Law compliance, agenda management, and elections administration. By assuming operational leadership and program oversight responsibilities, the Deputy Town Clerk reduces reliance on a single position for high-risk statutory duties, improves response times and compliance consistency, and allows the Town Clerk to focus on executive-level responsibilities, policy direction, and Council support. This position strengthens internal controls, mitigates legal and operational risk, supports succession planning, and ensures uninterrupted delivery of essential governance and transparency functions. BAP-100-04 - Firefighter - 1 in FY2027 (2 in Future Years): Hiring of three new firefighters over the next 3 years to offset overtime for shift coverage. Also, to help preserve firefighters' mental and physical health and avoid burnout. Only 1 of the 3 positions will be budgeted for FY2027. Table of ContentsSupplemental Requests FY27 Proposed Budget | Fountain Hills Page 15Meeting Packet Page 18 of 295 Executive Summary This summary includes the General Fund, Special Revenue Funds, Capital Project Funds, Debt Service Funds, and Internal Service Funds. The Town's General Fund must be balanced between current year's projected revenues and current year budgeted expenditures. However, other funds may use existing fund balances from prior years to cover current year expenditures. This summary provides an overall town-wide proposed budget for fiscal year 2027, beginning on July 1, 2026. Projected Revenues  The Town is projecting $38.5 million of total revenue for FY2027.  Major fund projected revenues include the General Fund at $26.8 million, the Streets Fund at $4.5 million, and the Capital Projects Fund at $2.7 million (including expected grant revenues; the Capital Projects Fund also receives transfers in of General Fund excess reserves at year- end). The Town utilizes a conservative revenue projection methodology to ensure the Town is well-prepared for economic slowdowns. Recent revenue growth has flattened, which is reflected in these projections.   FY2027 Projected Revenues General Fund (Budgeted)$26,800,894 Streets Fund (Budgeted)$4,516,381 Capital Projects Fund (Budgeted)$2,668,068 Special Revenue Fund (Budgeted)$1,755,660 Economic Development Fund (Budgeted)$525,042 Vehicle/Equip Repl Fund (Budgeted)$507,102 Park/Rec Dev Fee (Budgeted)$475,112 Streets Dev Fee (Budgeted)$380,179 Fire/EMS Dev Fee (Budgeted)$168,618 Tourism Fund (Budgeted)$153,126 Facilities Reserve Fund (Budgeted)$144,302 Downtown Strategy Fund (Budgeted)$142,091 Public Art Fund (Budgeted)$101,289 Technology Repl Fund (Budgeted)$65,511 Court Enhancement Fund (Budgeted)$60,641 Cottonwoods Maint Dist (Budgeted)$12,770 GO Bond Debt Serv (Budgeted)$566 MPC Debt Serv (Budgeted)$251 Eagle Mtn CFD Debt Serv (Budgeted)$0 Table of ContentsExecutive Summary FY27 Proposed Budget | Fountain Hills Page 16Meeting Packet Page 19 of 295 Budgeted Expenditures Town staff have included $49.2 million of total budgeted expenditures for the FY2027 proposed budget, including $26.8 million in the Town's primary operating fund, the General Fund. Based on Council direction during budgetary work sessions, this FY2027 proposed budget includes a balanced General Fund budget with about $1 million of contingency to maintain levels of service to our residents, and continued emphasis on roadwork and capital improvements in our Town. Specifically, $8.3 million is budgeted in the Streets Fund supporting road projects, and about $10 million is budgeted for the Town's Capital Projects Fund for 20 planned capital improvements Town-wide. Considering all these factors, the Town will also ensure that this proposed budget, and ultimately the final adopted budget, complies with the Arizona Constitutional expenditure limitation of $38.2 million for FY2027. FY2027 Budgeted Expenditures General Fund (Budgeted)$26,800,894 Capital Projects Fund (Budgeted)$10,000,000 Streets Fund (Budgeted)$8,269,842 Special Revenue Fund (Budgeted)$1,755,660 Facilities Reserve Fund (Budgeted)$600,000 Vehicle/Equip Repl Fund (Budgeted)$580,000 Economic Development Fund (Budgeted)$503,234 Tourism Fund (Budgeted)$245,756 Downtown Strategy Fund (Budgeted)$240,200 Court Enhancement Fund (Budgeted)$87,500 Technology Repl Fund (Budgeted)$50,000 Public Art Fund (Budgeted)$42,777 Cottonwoods Maint Dist (Budgeted)$16,341 Fire/EMS Dev Fee (Budgeted)$4,000 Streets Dev Fee (Budgeted)$4,000 Park/Rec Dev Fee (Budgeted)$4,000 MPC Debt Serv (Budgeted)$510 GO Bond Debt Serv (Budgeted)$350 Eagle Mtn CFD Debt Serv (Budgeted)$0 Table of ContentsExecutive Summary FY27 Proposed Budget | Fountain Hills Page 17Meeting Packet Page 20 of 295 Funds Summary Over view The accounts of the Town are organized on the basis of funds, each of which is considered a separate accounting entity. Operations of each fund are accounted for with a separate set of self-balancing accounts that comprise its assets, deferred outflows, liabilities, deferred inflows, fund balance, revenues and expenditures. Town resources are allocated to and accounted for in individual funds based on the purposes for which they are to be spent and the means by which spending activities are controlled. The Town of Fountain Hills appropriates all funds in its budget process. Major Funds: General Fund The General Fund (Fund 100) is the primary operating fund of the Town and accounts for the resources and uses of various Fountain Hills departments. It exists to account for the financing of services traditionally associated with local government. These services include police and fire protection, development services (planning & zoning/building safety/code enforcement/GIS), public works (facilities/engineering), community services (parks and recreation/community center/senior services), general administration, and any other activity for which a special fund has not been created. Governmental accounting requires the General Fund to be used for all financial resources except those required to be accounted for in another fund and has designations of non-spendable, restricted, committed, assigned or unassigned. The General Fund meets the GFOA criteria for major funds. Streets Fund The Streets (HURF) Fund (Fund 200) is funded by 0.2% of local sales tax, State-shared revenues and transfers from the General Fund, as directed by Council. The State of Arizona taxes motor fuels and collects a variety of fees and charges relating to the registration and operation of motor vehicles. These revenues are deposited in the Arizona Highway User Revenue Fund (HURF) and are then distributed to the cities, towns, and counties and to the State Highway Fund. This fund may only be used for street and highway purposes and is a restricted fund. The Streets Fund meets the GFOA criteria for major funds. Capital Projects Fund The Capital Projects Fund (Fund 600) revenues are assigned revenues derived from excess General Fund revenues and 50% of the construction-related local sales tax. The Capital Projects Fund is the primary funding source for the Town's capital improvements. The Capital Projects Fund meets the GFOA criteria for major funds. Facilities Reserve Fund The Facilities Reserve Fund (Fund 610) has been established to cover replacement costs for large-scale items that cannot be absorbed in annual operating budgets. These items include, but are not limited to, roofing, interior and exterior building painting, carpet replacement, physical plant mechanical equipment, and parks and recreation structures. The Facilities Reserve Fund meets the GFOA criteria for major funds. Special Revenue Fund The Special Revenue/Grants Fund (Fund 400) is restricted by the terms of the individual grants or program funds received. An example of this would be state or federal grant funds. These funds are to be used only for the specific program or programs for which the funds have been awarded and in accordance with all the grant conditions. The Special Revenue Fund meets the GFOA criteria for major funds. Economic Development Fund(s) Table of ContentsFunds Summary Overview FY27 Proposed Budget | Fountain Hills Page 18Meeting Packet Page 21 of 295 The Economic Development Division operates out of these three funds: Economic Development Fund, Downtown Strategy Fund, and Tourism Fund which have been established to account for local sales tax revenues to be used for these purposes. The Town deposits 0.08% and 0.02% of local sales tax collections into the Economic Development Fund and Downtown Strategy Fund, respectively, and deposits Tourism grant revenues and transfers from the Economic Development Fund into the Tourism Fund. These three funds are presented together for readability and programmatic context, although legally budgeted separately. Specifically, these funds are used for the Town's Economic Development programs, including Downtown Strategy and Tourism initiatives. Although these funds do not meet GFOA criteria for major funds, their importance to Town operations requires separate presentation (combined for this book). Major Funds Relationships with Departments/Divisions 8 Major Funds (including General Fund) Table of ContentsFunds Summary Overview FY27 Proposed Budget | Fountain Hills Page 19Meeting Packet Page 22 of 295 Non-Major Funds Relationships with Departments/Divisions All 11 other non-major funds include: Streets, Fire, and Park Development Impact Fees (Capital Funds); Public Art Fund; Court Enhancement Fund; Cottonwoods Maintenance District (special taxing legally separate district); Eagle Mountain Community Facilities District (special taxing legally separate district); Technology and Vehicle Replacement Funds (Internal Service); General Obligation Bond and Municipal Property Corporation Funds (Debt Service) 11 Nonmajor Funds Table of ContentsFunds Summary Overview FY27 Proposed Budget | Fountain Hills Page 20Meeting Packet Page 23 of 295 All Funds Summary This summary includes the General Fund, Special Revenue Funds, Capital Project Funds, Debt Service Funds, and Internal Service Funds. The Town's General Fund must be balanced between current year projected revenues and current year budgeted expenditures. However, other funds may use fund balance from prior years to cover current year expenditures. This summary provides an overall town-wide budget for the fiscal year. Summary In 2027, the budgeted expenditures for the Town of Fountain Hills are $49.2 million, representing a decrease of 7.85% from the 2026 budgeted expenditures of $53.4 million. Projected revenues for 2027 are $38.5 million, which is 6.47% lower than the 2026 budgeted revenues of $41.1 million. This decrease contrasts with the prior year's revenue growth of 12.35%.  These reductions can be explained due to a possible $3 million pass-through federal grant that the Town Council approved staff to apply for in collaboration with the local International Dark Sky Discovery Center. Those revenues and expenditures were budgeted in FY2026, but because the grant application was unsuccessful, the Town never received those revenues, nor passed-through and expended those monies. Revenues vs Expenditures Summary Revenue Actual Revenue Surplus Revenue Budgeted Expenditures Actual Expenditures Budgeted 2023 2024 2025 2026 2027 0 $10M $20M $30M $40M $50M $60M Table of ContentsAll Funds Summary FY27 Proposed Budget | Fountain Hills Page 21Meeting Packet Page 24 of 295 Comprehensive Fund Summary Comprehensive Fund Summary Category FY 2023 Actual FY 2024 Actual FY 2025 Actual FY 2026 Adopted Budget FY 2027 Proposed Budget FY 2026 Adopted Budget vs. FY 2027 Proposed Budget ($ Change) Beginning Fund Balance $32,372,603 $41,987,474 $48,915,678 $50,227,983 $45,213,500 -$5,014,483 Revenues Taxes $20,885,081 $20,920,887 $20,535,880 $18,375,329 $18,886,191 $510,862 Transfers In $404,821 $419,994 $418,029 $433,848 $523,561 $89,713 Licenses & Permits $1,486,885 $1,714,420 $1,074,353 $1,383,902 $1,848,034 $464,132 Intergovernmental Revenue $15,854,454 $13,696,564 $12,785,337 $18,611,861 $15,001,672 -$3,610,189 Leases & Rents $448,897 $365,792 $368,170 $379,914 $387,455 $7,541 Charges For Services $216,912 $247,301 $315,987 $460,000 $385,000 -$75,000 Other $406,964 $392,703 $474,026 $283,000 $251,660 -$31,340 Fines & Forfeitures $240,308 $255,289 $244,624 $243,000 $352,000 $109,000 Investment Earnings $1,100,314 $2,345,425 $2,431,871 $970,018 $842,030 -$127,988 Total Revenues $41,044,636 $40,358,377 $38,648,279 $41,140,872 $38,477,603 -$2,663,269 Expenditures Payroll Expenses $6,350,204 $9,072,382 $11,751,325 $12,868,661 $13,743,493 $874,832 Dues & Memberships $100,662 $81,969 $93,612 $96,118 $100,362 $4,244 Meetings & Training $57,657 $65,516 $90,851 $162,275 $174,336 $12,061 Maintenance & Repair $5,282,662 $6,523,261 $7,691,256 $7,253,329 $8,208,879 $955,550 Utilities $829,141 $907,838 $910,023 $877,353 $914,473 $37,120 Contractual Services $12,826,319 $11,645,686 $9,802,361 $10,562,481 $10,501,146 -$61,335 Supplies $298,275 $344,096 $391,715 $472,778 $501,353 $28,575 Equipment/Improvemen $454,690 $528,751 $364,835 $363,260 $373,010 $9,750 Damages/Vandalism $42,456 $17,518 $39,705 $53,000 $53,650 $650 Internal Service $405,404 $420,655 $418,260 $431,950 $528,196 $96,246 Transfers Out $372,340 ----- Contingency ---$7,740,243 $4,207,316 -$3,532,927 Capital Expenditures $4,552,100 $3,794,256 $6,003,328 $12,514,100 $9,898,000 -$2,616,100 Debt Service ---$850 $850 - Total Expenditures $31,571,908 $33,401,929 $37,557,270 $53,396,398 $49,205,064 -$4,191,334 Total Revenues Less Expenditures $9,472,728 $6,956,448 $1,091,009 -$12,255,526 -$10,727,461 $1,528,065 Ending Fund Balance $41,845,331 $48,943,922 $50,006,686 $37,972,457 $34,486,039 -$3,486,418 Table of ContentsAll Funds Summary FY27 Proposed Budget | Fountain Hills Page 22Meeting Packet Page 25 of 295 Revenues by Fund The following charts detail all the Town's actual revenues by Fund in fiscal years 2023 through 2025, and all the Town's projected revenues by Fund in Fiscal Years 2026 and 2027. The Town is projecting about $38.5 million of total revenues for Fiscal Year 2027. Historical and Projected Revenues by Fund Eagle Mtn CFD Debt Serv MPC Debt Serv GO Bond Debt Serv Cottonwoods Maint Dist Environmental Fund Court Enhancement Fund Fire/EMS Dev Fee Public Art Fund Technology Repl Fund Tourism Fund Downtown Strategy Fund Facilities Reserve Fund Streets Dev Fee Park/Rec Dev Fee Vehicle/Equip Repl Fund Economic Development Fund Special Revenue Fund Capital Projects Fund Streets Fund General Fund $41M$41M$41M $40M$40M $40M $39M$39M $39M $41M$41M$41M $38M$38M $38M FY2023 FY2024 FY2025 FY2026 FY2027 0 $20M $40M $60M Table of ContentsAll Funds Summary FY27 Proposed Budget | Fountain Hills Page 23Meeting Packet Page 26 of 295 FY27 Revenues by Fund General Fund $26,800,894 69.65% Streets Fund $4,516,381 11.74% Capital Projects Fund $2,668,068 6.93% Special Revenue Fund $1,755,660 4.56% Economic Development Fund $525,042 1.36% Vehicle/Equip Repl Fund $507,102 1.32% Park/Rec Dev Fee $475,112 1.23% Streets Dev Fee $380,179 0.99% Fire/EMS Dev Fee $168,618 0.44% Tourism Fund $153,126 0.40% Facilities Reserve Fund $144,302 0.38% Downtown Strategy Fund $142,091 0.37% Public Art Fund $101,289 0.26% Technology Repl Fund $65,511 0.17% Court Enhancement Fund $60,641 0.16% Cottonwoods Maint Dist $12,770 0.03% GO Bond Debt Serv $566 0.00% MPC Debt Serv $251 0.00% Category FY 2023 Actual FY 2024 Actual FY 2025 Actual FY 2026 Adopted Budget FY 2027 Proposed Budget FY 2026 Adopted Budget vs. FY 2027 Proposed Budget ($ Change) General Fund $28,074,550 $30,798,033 $28,362,530 $26,051,539 $26,800,894 $749,355 Streets Fund $4,261,218 $4,743,883 $5,193,587 $4,732,976 $4,516,381 -$216,595 Downtown Strategy Fund $161,955 $175,491 $172,994 $138,063 $142,091 $4,028 Economic Development Fund $588,144 $607,835 $591,160 $507,696 $525,042 $17,346 Tourism Fund $122,010 $127,524 $150,719 $153,000 $153,126 $126 Special Revenue Fund $4,632,397 $144,892 $709,881 $4,690,000 $1,755,660 -$2,934,340 Public Art Fund $19,699 $7,904 $56,631 $100,820 $101,289 $469 Court Enhancement Fund $28,696 $28,255 $42,664 $41,789 $60,641 $18,852 Environmental Fund $21,942 $32,185 $11,245 --- GO Bond Debt Serv $4,711 $8,535 $2,061 $500 $566 $66 Eagle Mtn CFD Debt Serv $710 $1,062 $190 --- MPC Debt Serv $402 $628 $533 $200 $251 $51 Cottonwoods Maint Dist $9,332 $10,729 $11,359 $12,006 $12,770 $764 Capital Projects Fund $1,997,163 $2,395,076 $2,078,624 $3,548,957 $2,668,068 -$880,889 Facilities Reserve Fund $140,114 $264,030 $360,779 $140,000 $144,302 $4,302 38.5M Revenues by Fund Table of ContentsAll Funds Summary FY27 Proposed Budget | Fountain Hills Page 24Meeting Packet Page 27 of 295 Category FY 2023 Actual FY 2024 Actual FY 2025 Actual FY 2026 Adopted Budget FY 2027 Proposed Budget FY 2026 Adopted Budget vs. FY 2027 Proposed Budget ($ Change) Fire/EMS Dev Fee $30,676 $31,756 $18,004 $21,330 $168,618 $147,288 Streets Dev Fee $206,286 $214,589 $152,156 $281,368 $380,179 $98,811 Park/Rec Dev Fee $222,998 $199,094 $181,499 $237,728 $475,112 $237,384 Technology Repl Fund $70,389 $70,653 $71,514 $65,511 $65,511 - Vehicle/Equip Repl Fund $451,244 $496,223 $480,148 $417,389 $507,102 $89,713 Total Revenues $41,044,636 $40,358,377 $38,648,279 $41,140,872 $38,477,603 -$2,663,269 The Special Revenue Fund experienced a significant reduction of $2.9 million due to the Town applying for a significant federal grant the prior year in conjunction with the local International Dark Sky Discovery Center. The Park/Rec Development Fee, Fire/EMS Development Fee, Streets Development Fee Funds increased significantly as shown above due to the Town Council adopting a new development impact fee schedule that was effective as of April 6, 2026. Table of ContentsAll Funds Summary FY27 Proposed Budget | Fountain Hills Page 25Meeting Packet Page 28 of 295 Revenues by Source The following charts detail all the Town's actual revenues by source in fiscal years 2023 through 2025, and all the Town's projected revenues by source in Fiscal Years 2026 and 2027. Historical and Projected Revenues by Source Fines & Forfeitures Charges For Services Other Leases & Rents Transfers In Licenses & Permits Investment Earnings Intergovernmental Revenue Taxes FY27 Revenues by Source Taxes $18,886,191 49.08% Intergovernmental Revenue $15,001,672 38.99% Licenses & Permits $1,848,034 4.80% Investment Earnings $842,030 2.19% Transfers In $523,561 1.36% Leases & Rents $387,455 1.01% Charges For Services $385,000 1.00% Fines & Forfeitures $352,000 0.91% Other $251,660 0.65% $41M$41M$41M $40M$40M $40M $39M$39M $39M $41M$41M$41M $38M$38M $38M FY2023 FY2024 FY2025 FY2026 FY2027 0 $20M $40M $60M 38.5M Table of ContentsAll Funds Summary FY27 Proposed Budget | Fountain Hills Page 26Meeting Packet Page 29 of 295 Category FY 2023 Actual FY 2024 Actual FY 2025 Actual FY 2026 Adopted Budget FY 2027 Proposed Budget FY 2026 Adopted Budget vs. FY 2027 Proposed Budget ($ Change) Taxes $20,885,081 $20,920,887 $20,535,880 $18,375,329 $18,886,191 $510,862 Transfers In $404,821 $419,994 $418,029 $433,848 $523,561 $89,713 Licenses & Permits $1,486,885 $1,714,420 $1,074,353 $1,383,902 $1,848,034 $464,132 Intergovernmental Revenue $15,854,454 $13,696,564 $12,785,337 $18,611,861 $15,001,672 -$3,610,189 Leases & Rents $448,897 $365,792 $368,170 $379,914 $387,455 $7,541 Charges For Services $216,912 $247,301 $315,987 $460,000 $385,000 -$75,000 Other $406,964 $392,703 $474,026 $283,000 $251,660 -$31,340 Fines & Forfeitures $240,308 $255,289 $244,624 $243,000 $352,000 $109,000 Investment Earnings $1,100,314 $2,345,425 $2,431,871 $970,018 $842,030 -$127,988 Total Revenues $41,044,636 $40,358,377 $38,648,279 $41,140,872 $38,477,603 -$2,663,269 Expenditures by Fund The following charts detail all the Town's actual expenditures by Fund in fiscal years 2023 through 2025, and all the Town's budgeted expenditures by Fund in Fiscal Years 2026 and 2027. The Town is budgeting total expenditures of $49.2 million in FY2027. Historical and Budgeted Expenditures by Fund GO Bond Debt Serv Eagle Mtn CFD Debt Serv MPC Debt Serv Fire/EMS Dev Fee Streets Dev Fee Cottonwoods Maint Dist Public Art Fund Technology Repl Fund Court Enhancement Fund Park/Rec Dev Fee Downtown Strategy Fund Vehicle/Equip Repl Fund Environmental Fund Tourism Fund Economic Development Fund Facilities Reserve Fund Special Revenue Fund Streets Fund Capital Projects Fund General Fund In FY2023, the Town paid for $3.4 million of its Fire contracted services and another $840k of its MCSO contracted services expenditures from the Special Revenue Fund using federal grant revenues.  Therefore, FY2023 expenditure amounts shown here in the General Fund do not include those expenditures. Revenues by Source $32M$32M $32M $33M$33M $33M $38M$38M $38M $53M$53M$53M $49M$49M $49M FY2023 FY2024 FY2025 FY2026 FY2027 0 $20M $40M $60M Table of ContentsAll Funds Summary FY27 Proposed Budget | Fountain Hills Page 27Meeting Packet Page 30 of 295 FY27 Expenditures by Fund General Fund $26,800,894 54.47% Capital Projects Fund $10,000,000 20.32% Streets Fund $8,269,842 16.81% Special Revenue Fund $1,755,660 3.57% Facilities Reserve Fund $600,000 1.22% Vehicle/Equip Repl Fund $580,000 1.18% Economic Development Fund $503,234 1.02% Tourism Fund $245,756 0.50% Downtown Strategy Fund $240,200 0.49% Court Enhancement Fund $87,500 0.18% Technology Repl Fund $50,000 0.10% Public Art Fund $42,777 0.09% Cottonwoods Maint Dist $16,341 0.03% Park/Rec Dev Fee $4,000 0.01% Streets Dev Fee $4,000 0.01% Fire/EMS Dev Fee $4,000 0.01% MPC Debt Serv $510 0.00% GO Bond Debt Serv $350 0.00% Category FY 2023 Actual FY 2024 Actual FY 2025 Actual FY 2026 Adopted Budget FY 2027 Proposed Budget FY 2026 Adopted Budget vs. FY 2027 Proposed Budget ($ Change) General Fund $15,361,988 $21,722,986 $22,594,710 $26,051,539 $26,800,894 $749,355 Streets Fund $5,054,003 $6,311,022 $7,286,475 $7,244,627 $8,269,842 $1,025,215 Downtown Strategy Fund $54,623 $109,910 $156,114 $165,200 $240,200 $75,000 Economic Development Fund $306,816 $216,703 $260,196 $471,378 $503,234 $31,856 Tourism Fund $247,824 $330,387 $389,372 $333,425 $245,756 -$87,669 Special Revenue Fund $4,597,025 $276,137 $764,618 $4,690,000 $1,755,660 -$2,934,340 Public Art Fund $23,756 $31,464 $33,194 $40,214 $42,777 $2,563 Court Enhancement Fund $15,929 $5,000 $50,087 $77,500 $87,500 $10,000 Environmental Fund $386,571 $563,758 $379,776 --- GO Bond Debt Serv ---$350 $350 - Eagle Mtn CFD Debt Serv $88 $198 $443 $200 --$200 MPC Debt Serv $10 $10 $10 $510 $510 - Cottonwoods Maint Dist $7,351 $7,561 $8,463 $15,605 $16,341 $736 Capital Projects Fund $4,390,407 $3,225,153 $5,058,683 $12,712,800 $10,000,000 -$2,712,800 Facilities Reserve Fund $781,979 $463,419 $530,324 $1,000,000 $600,000 -$400,000 49.2M Expenditures by Fund Table of ContentsAll Funds Summary FY27 Proposed Budget | Fountain Hills Page 28Meeting Packet Page 31 of 295 Category FY 2023 Actual FY 2024 Actual FY 2025 Actual FY 2026 Adopted Budget FY 2027 Proposed Budget FY 2026 Adopted Budget vs. FY 2027 Proposed Budget ($ Change) Fire/EMS Dev Fee ---$1,964 $4,000 $2,036 Streets Dev Fee ---$31,146 $4,000 -$27,146 Park/Rec Dev Fee $275,000 --$30,840 $4,000 -$26,840 Technology Repl Fund $28,936 $45,000 $44,807 $50,000 $50,000 - Vehicle/Equip Repl Fund $39,602 $93,222 -$479,100 $580,000 $100,900 Total Expenditures $31,571,908 $33,401,929 $37,557,270 $53,396,398 $49,205,064 -$4,191,334 Expenditures by Department The following charts detail all the Town's actual expenditures by Depar tment in fiscal years 2023 through 2025, and all the Town's budgeted expenditures by Department in Fiscal Years 2026 and 2027. The Town is budgeting total expenditures of $49.2 million in FY2027. Historical and Budgeted Expenditures by Department Mayor & Council Municipal Court General Government Development Services Fire & Emergency Med Law Enforcement Community Services Administration Public Works In FY2023, the Town paid for $3.4 million of its Fire contracted services and another $840k of its MCSO contracted services expenditures from the Administration Depar tment due to federal grant revenues.  Therefore, FY2023 expenditure amounts shown here in the Fire & Emergency and Law Enforcement departments do not include those expenditures. $32M$32M $32M $33M$33M $33M $38M$38M $38M $53M$53M$53M $49M$49M $49M FY2023 FY2024 FY2025 FY2026 FY2027 0 $20M $40M $60M Table of ContentsAll Funds Summary FY27 Proposed Budget | Fountain Hills Page 29Meeting Packet Page 32 of 295 FY27 Expenditures by Department Public Works $14,605,167 29.68% Administration $8,916,368 18.12% Community Services $8,833,353 17.95% Fire & Emergency Med $6,481,777 13.17% Law Enforcement $5,795,856 11.78% General Government $2,260,819 4.59% Development Services $1,568,863 3.19% Municipal Court $662,419 1.35% Mayor & Council $80,442 0.16% Category FY 2023 Actual FY 2024 Actual FY 2025 Actual FY 2026 Adopted Budget FY 2027 Proposed Budget FY 2026 Adopted Budget vs. FY 2027 Proposed Budget ($ Change) Mayor & Council $70,280 $68,215 $63,077 $73,455 $80,442 $6,987 Administration $7,938,486 $3,682,248 $4,061,983 $10,097,086 $8,916,368 -$1,180,718 General Government $682,682 $753,535 $627,360 $2,364,944 $2,260,819 -$104,125 Municipal Court $442,699 $496,817 $583,884 $626,469 $662,419 $35,950 Public Works $9,716,563 $10,516,378 $14,295,331 $20,778,759 $14,605,167 -$6,173,592 Development Services $1,221,700 $1,275,320 $1,392,773 $1,532,513 $1,568,863 $36,350 Community Services $5,834,116 $5,138,175 $5,160,030 $6,093,619 $8,833,353 $2,739,734 Fire & Emergency Med $1,091,189 $5,245,457 $5,184,975 $5,968,548 $6,481,777 $513,229 Law Enforcement $4,574,193 $6,225,785 $6,187,857 $5,861,005 $5,795,856 -$65,149 Total Expenditures $31,571,908 $33,401,929 $37,557,270 $53,396,398 $49,205,064 -$4,191,334 In FY2023, the Town paid for $3.4 million of its Fire contracted services and another $840k of its MCSO contracted services expenditures from the Administration Depar tment due to federal grant revenues.  Therefore, FY2023 expenditure amounts shown here in the Fire & Emergency and Law Enforcement departments do not include those expenditures. Further, capital project budgets are included in these numbers, which show a combined operating and capital budget by Depar tment. 49.2M Expenditures by Department Table of ContentsAll Funds Summary FY27 Proposed Budget | Fountain Hills Page 30Meeting Packet Page 33 of 295 Expenditures by Object  The following charts detail all the Town's actual expenditures by Object in fiscal years 2023 through 2025, and all the Town's budgeted expenditures by Object in Fiscal Years 2026 and 2027. The Town is budgeting total expenditures of $49.2 million in FY2027. Historical and Budgeted Expenditures by Object Debt Service Damages/Vandalism Transfers Out Dues & Memberships Meetings & Training Supplies Equipment/Improvemen Internal Service Utilities Contingency Maintenance & Repair Capital Expenditures Payroll Expenses Contractual Services FY27 Expenditures by Object Payroll Expenses $13,743,493 27.93% Contractual Services $10,501,146 21.34% Capital Expenditures $9,898,000 20.12% Maintenance & Repair $8,208,879 16.68% Contingency $4,207,316 8.55% Utilities $914,473 1.86% Internal Service $528,196 1.07% Supplies $501,353 1.02% Equipment/Improvemen $373,010 0.76% Meetings & Training $174,336 0.35% Dues & Memberships $100,362 0.20% Damages/Vandalism $53,650 0.11% Debt Service $850 0.00% $32M$32M $32M $33M$33M $33M $38M$38M $38M $53M$53M$53M $49M$49M $49M FY2023 FY2024 FY2025 FY2026 FY2027 0 $20M $40M $60M 49.2M Table of ContentsAll Funds Summary FY27 Proposed Budget | Fountain Hills Page 31Meeting Packet Page 34 of 295 Category FY 2023 Actual FY 2024 Actual FY 2025 Actual FY 2026 Adopted Budget FY 2027 Proposed Budget FY 2026 Adopted Budget vs. FY 2027 Proposed Budget ($ Change) Payroll Expenses $6,350,204 $9,072,382 $11,751,325 $12,868,661 $13,743,493 $874,832 Dues & Memberships $100,662 $81,969 $93,612 $96,118 $100,362 $4,244 Meetings & Training $57,657 $65,516 $90,851 $162,275 $174,336 $12,061 Maintenance & Repair $5,282,662 $6,523,261 $7,691,256 $7,253,329 $8,208,879 $955,550 Utilities $829,141 $907,838 $910,023 $877,353 $914,473 $37,120 Contractual Services $12,826,319 $11,645,686 $9,802,361 $10,562,481 $10,501,146 -$61,335 Supplies $298,275 $344,096 $391,715 $472,778 $501,353 $28,575 Equipment/Improvemen $454,690 $528,751 $364,835 $363,260 $373,010 $9,750 Damages/Vandalism $42,456 $17,518 $39,705 $53,000 $53,650 $650 Internal Service $405,404 $420,655 $418,260 $431,950 $528,196 $96,246 Transfers Out $372,340 ----- Contingency ---$7,740,243 $4,207,316 -$3,532,927 Capital Expenditures $4,552,100 $3,794,256 $6,003,328 $12,514,100 $9,898,000 -$2,616,100 Debt Service ---$850 $850 - Total Expenditures $31,571,908 $33,401,929 $37,557,270 $53,396,398 $49,205,064 -$4,191,334 Fund Balance These Fund Balance charts include all actual ending fund balances for FY2023 through FY2025, and projected ending fund balances for FY2026 for the Town of Fountain Hills. Fund Balance Historical and Projected Assigned Unassigned Restricted Committed Nonspendable Fund Balance FY 2023 FY 2024 FY 2025 FY 2026 FY 2025 vs. FY 2026 (% Change) Unassigned $11,644,005 $13,070,591 $9,726,474 $9,460,000 -2.7% Assigned $16,498,106 $22,228,863 $24,338,138 $25,178,000 3.5% Committed $4,044,890 $4,466,782 $4,999,717 $5,500,000 10.0% Restricted $9,743,008 $9,096,303 $11,123,654 $5,035,500 -54.7% Nonspendable $57,465 $53,139 $40,000 $40,000 0.0% Expenditures by Object $42M$42M$42M $49M$49M $49M $50M$50M $50M $45M$45M $45M FY2023 FY2024 FY2025 FY2026 0 $20M $40M $60M Financial Summary Table of ContentsAll Funds Summary FY27 Proposed Budget | Fountain Hills Page 32Meeting Packet Page 35 of 295 Fund Balance FY 2023 FY 2024 FY 2025 FY 2026 FY 2025 vs. FY 2026 (% Change) Total Fund Balance $41,987,474 $48,915,678 $50,227,983 $45,213,500 -10.0% Table of ContentsAll Funds Summary FY27 Proposed Budget | Fountain Hills Page 33Meeting Packet Page 36 of 295 General Fund The General Fund (Fund 100) is the primary operating fund of the Town and accounts for the resources and uses of various Fountain Hills departments. It exists to account for the financing of services traditionally associated with local government. These services include police and fire protection, development services (planning & zoning/building safety/code enforcement/GIS), public works (facilities/engineering), community services (parks and recreation/community center/senior services), general administration, and any other activity for which a special fund has not been created. Governmental accounting requires the General Fund to be used for all financial resources except those required to be accounted for in another fund and has designations of non-spendable, restricted, committed, assigned or unassigned. Summary The Town of Fountain Hills is projecting revenues and budgeted expenditures of $26.8 million in the General Fund for FY2027 to support Town operations.  Revenues vs Expenditures Summary Revenue Actual Revenue Surplus Revenue Budgeted Expenditures Actual Expenditures Budgeted 2023 2024 2025 2026 2027 0 $10M $20M $30M $40M Table of ContentsGeneral Fund FY27 Proposed Budget | Fountain Hills Page 34Meeting Packet Page 37 of 295 Comprehensive Fund Summary The following comprehensive fund summary shows FY2023 through FY2025 actual revenues and expenditures compared with the FY2026 adopted budget and FY2027 proposed budget. Prior actual figures do not include transfers in and out of the General Fund, which results in the ending fund balances being overstated. For actual and projected fund balance data, please use the fund balance charts later in this section. Comprehensive Fund Summary Category FY 2023 Actual FY 2024 Actual FY 2025 Actual FY 2026 Adopted Budget FY 2027 Proposed Budget FY 2026 Adopted Budget vs. FY 2027 Proposed Budget (% Change) Beginning Fund Balance $13,085,141 $15,746,360 $17,575,552 $14,766,191 $15,000,000 1.6% Revenues Taxes $17,022,932 $17,185,635 $16,950,700 $15,312,027 $15,593,851 1.8% Licenses & Permits $1,103,367 $1,388,979 $836,276 $876,437 $855,170 -2.4% Intergovernmental Revenue $8,456,527 $10,349,568 $8,741,292 $8,412,654 $8,879,477 5.5% Leases & Rents $448,897 $365,792 $368,170 $379,914 $387,455 2.0% Charges For Services $196,580 $242,181 $278,368 $260,000 $275,000 5.8% Other $319,465 $309,878 $356,641 $252,000 $215,000 -14.7% Fines & Forfeitures $211,773 $227,192 $214,389 $210,000 $300,000 42.9% Investment Earnings $315,008 $728,807 $616,693 $348,507 $294,941 -15.4% Total Revenues $28,074,550 $30,798,033 $28,362,530 $26,051,539 $26,800,894 2.9% Expenditures Payroll Expenses $5,562,256 $8,164,974 $10,796,306 $11,753,164 $12,620,913 7.4% Dues & Memberships $80,222 $64,362 $75,819 $86,254 $87,045 0.9% Meetings & Training $53,972 $60,306 $70,651 $150,455 $163,016 8.3% Maintenance & Repair $848,314 $1,015,815 $1,415,514 $1,819,264 $1,771,877 -2.6% Utilities $671,063 $762,627 $764,038 $728,951 $767,550 5.3% Contractual Services $7,228,290 $10,364,720 $8,393,536 $8,990,744 $8,958,109 -0.4% Supplies $252,230 $317,329 $362,041 $442,828 $455,003 2.7% Equipment/Improvemen $175,596 $432,736 $202,865 $298,260 $298,010 -0.1% Damages/Vandalism $3,532 $727 $8,130 $13,000 $13,650 5.0% Internal Service $338,464 $349,955 $344,813 $362,376 $438,405 21.0% Contingency ---$1,406,243 $1,227,316 -12.7% Capital Expenditures $148,048 $189,436 $160,998 --0.0% Total Expenditures $15,361,988 $21,722,986 $22,594,710 $26,051,539 $26,800,894 2.9% Total Revenues Less Expenditures $12,712,562 $9,075,047 $5,767,820 --0.0% Ending Fund Balance $25,797,702 $24,821,407 $23,343,372 $14,766,191 $15,000,000 1.6% Table of ContentsGeneral Fund FY27 Proposed Budget | Fountain Hills Page 35Meeting Packet Page 38 of 295 Revenues by Source The following tables show FY2023 through FY2025 actual and FY2026 adopted budget and FY2027 proposed budget revenues by Source.  Historical and Projected Revenues by Source Fines & Forfeitures Charges For Services Other Leases & Rents Investment Earnings Licenses & Permits Intergovernmental Revenue Taxes FY27 Revenues by Source Taxes $15,593,851 58.18% Intergovernmental Revenue $8,879,477 33.13% Licenses & Permits $855,170 3.19% Leases & Rents $387,455 1.45% Fines & Forfeitures $300,000 1.12% Investment Earnings $294,941 1.10% Charges For Services $275,000 1.03% Other $215,000 0.80% Category FY 2023 Actual FY 2024 Actual FY 2025 Actual FY 2026 Adopted Budget FY 2027 Proposed Budget FY 2026 Adopted Budget vs. FY 2027 Proposed Budget (% Change) Taxes $17,022,932 $17,185,635 $16,950,700 $15,312,027 $15,593,851 1.8% $28M$28M$28M $31M$31M $31M $28M$28M$28M $26M$26M $26M $27M$27M $27M FY2023 FY2024 FY2025 FY2026 FY2027 0 $10M $20M $30M $40M 26.8M Revenues by Source Table of ContentsGeneral Fund FY27 Proposed Budget | Fountain Hills Page 36Meeting Packet Page 39 of 295 Category FY 2023 Actual FY 2024 Actual FY 2025 Actual FY 2026 Adopted Budget FY 2027 Proposed Budget FY 2026 Adopted Budget vs. FY 2027 Proposed Budget (% Change) Licenses & Permits $1,103,367 $1,388,979 $836,276 $876,437 $855,170 -2.4% Intergovernmental Revenue $8,456,527 $10,349,568 $8,741,292 $8,412,654 $8,879,477 5.5% Leases & Rents $448,897 $365,792 $368,170 $379,914 $387,455 2.0% Charges For Services $196,580 $242,181 $278,368 $260,000 $275,000 5.8% Other $319,465 $309,878 $356,641 $252,000 $215,000 -14.7% Fines & Forfeitures $211,773 $227,192 $214,389 $210,000 $300,000 42.9% Investment Earnings $315,008 $728,807 $616,693 $348,507 $294,941 -15.4% Total Revenues $28,074,550 $30,798,033 $28,362,530 $26,051,539 $26,800,894 2.9% Expenditures by Department The following charts show FY2023 through FY2025 actual expenditures by Department compared with the FY2026 adopted budget and FY2027 proposed budget expenditures by Department.  Historical and Budgeted Expenditures by Department Mayor & Council Municipal Court General Government Development Services Public Works Administration Community Services Fire & Emergency Med Law Enforcement $15M$15M $15M $22M$22M $22M $23M$23M $23M $26M$26M $26M $27M$27M$27M FY2023 FY2024 FY2025 FY2026 FY2027 0 $10M $20M $30M Table of ContentsGeneral Fund FY27 Proposed Budget | Fountain Hills Page 37Meeting Packet Page 40 of 295 FY27 Expenditures by Department Fire & Emergency Med $6,477,777 24.17% Law Enforcement $5,795,856 21.63% Community Services $4,580,916 17.09% Administration $3,459,977 12.91% Public Works $2,516,325 9.39% General Government $1,745,819 6.51% Development Services $1,568,863 5.85% Municipal Court $574,919 2.15% Mayor & Council $80,442 0.30% Category FY 2023 Actual FY 2024 Actual FY 2025 Actual FY 2026 Adopted Budget FY 2027 Proposed Budget FY 2026 Adopted Budget vs. FY 2027 Proposed Budget (% Change) Mayor & Council $70,280 $68,215 $63,077 $73,455 $80,442 9.5% Administration $2,723,534 $2,740,837 $3,038,185 $3,252,618 $3,459,977 6.4% General Government $614,144 $615,312 $582,553 $1,899,944 $1,745,819 -8.1% Municipal Court $426,770 $491,817 $533,798 $548,969 $574,919 4.7% Public Works $1,336,419 $1,572,310 $1,678,837 $2,488,886 $2,516,325 1.1% Development Services $1,221,700 $1,275,320 $1,392,773 $1,532,513 $1,568,863 2.4% Community Services $3,303,758 $3,487,933 $3,932,655 $4,427,565 $4,580,916 3.5% Fire & Emergency Med $1,091,189 $5,245,457 $5,184,975 $5,966,584 $6,477,777 8.6% Law Enforcement $4,574,193 $6,225,785 $6,187,857 $5,861,005 $5,795,856 -1.1% Total Expenditures $15,361,988 $21,722,986 $22,594,710 $26,051,539 $26,800,894 2.9% In FY2023, the Town paid for $3.4 million of its Fire contracted services and another $840k of its MCSO contracted services out of its Special Revenue Fund due to federal grant revenues.  Therefore, FY2023 expenditure amounts shown here in the General Fund do not include those expenditures. Expenditures by Object The following charts show FY2023 through FY2025 actual expenditures by Object compared with the FY2026 adopted budget and FY2027 proposed budget expenditures by Object. While reviewing this chart, please consider that FY2023 public safety expenditures were also paid for by the Town's Special Revenue Fund. 26.8M Expenditures by Department Table of ContentsGeneral Fund FY27 Proposed Budget | Fountain Hills Page 38Meeting Packet Page 41 of 295 Historical and Budgeted Expenditures by Object Damages/Vandalism Dues & Memberships Meetings & Training Capital Expenditures Equipment/Improvemen Supplies Internal Service Contingency Utilities Maintenance & Repair Contractual Services Payroll Expenses FY27 Expenditures by Object Payroll Expenses $12,620,913 47.09% Contractual Services $8,958,109 33.42% Maintenance & Repair $1,771,877 6.61% Contingency $1,227,316 4.58% Utilities $767,550 2.86% Supplies $455,003 1.70% Internal Service $438,405 1.64% Equipment/Improvemen $298,010 1.11% Meetings & Training $163,016 0.61% Dues & Memberships $87,045 0.32% Damages/Vandalism $13,650 0.05% Category FY 2023 Actual FY 2024 Actual FY 2025 Actual FY 2026 Adopted Budget FY 2027 Proposed Budget FY 2026 Adopted Budget vs. FY 2027 Proposed Budget (% Change) Payroll Expenses $5,562,256 $8,164,974 $10,796,306 $11,753,164 $12,620,913 7.4% Mayor & Council $40,348 $39,050 $38,940 $40,572 $40,514 -0.1% Administration $1,763,230 $1,899,657 $1,999,913 $2,111,420 $2,298,677 8.9% $15M$15M $15M $22M$22M $22M $23M$23M $23M $26M$26M $26M $27M$27M$27M FY2023 FY2024 FY2025 FY2026 FY2027 0 $10M $20M $30M 26.8M Expenditures by Object Table of ContentsGeneral Fund FY27 Proposed Budget | Fountain Hills Page 39Meeting Packet Page 42 of 295 Category FY 2023 Actual FY 2024 Actual FY 2025 Actual FY 2026 Adopted Budget FY 2027 Proposed Budget FY 2026 Adopted Budget vs. FY 2027 Proposed Budget (% Change) Municipal Court $393,147 $448,622 $493,793 $503,275 $523,476 4.0% Public Works $703,865 $813,286 $869,890 $900,485 $918,016 1.9% Development Services $993,849 $1,067,983 $1,218,681 $1,241,103 $1,292,499 4.1% Community Services $1,667,818 $1,828,329 $2,005,552 $2,246,822 $2,389,203 6.3% Fire & Emergency Med -$2,068,046 $4,169,537 $4,709,487 $5,158,528 9.5% Dues & Memberships $80,222 $64,362 $75,819 $86,254 $87,045 0.9% Mayor & Council $112 ----0.0% Administration $22,189 $5,904 $6,863 $10,173 $9,973 -2.0% General Government $44,279 $46,299 $46,999 $41,710 $42,416 1.7% Municipal Court $2,716 $764 $685 $677 $677 0.0% Public Works $1,791 $1,035 $5,718 $12,975 $12,975 0.0% Development Services $3,199 $2,545 $6,654 $5,999 $6,334 5.6% Community Services $5,436 $6,895 $4,678 $6,020 $5,970 -0.8% Fire & Emergency Med $500 $920 $4,222 $8,700 $8,700 0.0% Meetings & Training $53,972 $60,306 $70,651 $150,455 $163,016 8.3% Mayor & Council $8,832 $12,052 $8,271 $15,575 $17,950 15.2% Administration $18,162 $20,632 $26,740 $49,128 $59,314 20.7% General Government -$54 -$1,740 $1,740 0.0% Municipal Court $1,232 $2,815 $2,578 $8,405 $8,405 0.0% Public Works $2,117 $1,981 $3,276 $7,190 $7,190 0.0% Development Services $3,660 $1,766 $4,174 $19,230 $19,230 0.0% Community Services $18,028 $13,757 $17,887 $28,987 $23,987 -17.2% Fire & Emergency Med $1,940 $7,248 $7,724 $20,200 $25,200 24.8% Maintenance & Repair $848,314 $1,015,815 $1,415,514 $1,819,264 $1,771,877 -2.6% Mayor & Council $135 $78 ---0.0% Administration $285,190 $282,166 $347,466 $379,192 $364,550 -3.9% General Government $1,747 $2,601 $2,337 $6,000 $6,000 0.0% Municipal Court $2,521 $10,339 $6,113 $10,010 $10,010 0.0% Public Works $181,319 $218,420 $352,529 $803,972 $803,972 0.0% Development Services $40,375 $50,187 $46,895 $51,912 $54,912 5.8% Community Services $296,982 $315,590 $496,473 $443,772 $408,027 -8.1% Fire & Emergency Med $40,045 $136,433 $163,701 $123,110 $123,110 0.0% Law Enforcement ---$1,296 $1,296 0.0% Utilities $671,063 $762,627 $764,038 $728,951 $767,550 5.3% Mayor & Council ----$1,080 - Administration $14,875 $17,638 $983 $2,540 $1,920 -24.4% General Government $20,523 $20,842 $21,065 $26,488 $26,488 0.0% Public Works $240,587 $263,779 $250,298 $193,457 $198,056 2.4% Development Services $9,100 $7,557 $9,050 $9,132 $9,132 0.0% Community Services $337,342 $366,999 $368,916 $391,355 $397,985 1.7% Fire & Emergency Med $48,635 $85,813 $113,726 $105,979 $132,889 25.4% Contractual Services $7,228,290 $10,364,720 $8,393,536 $8,990,744 $8,958,109 -0.4% Mayor & Council $5,779 $6,311 $2,573 $7,070 $7,660 8.3% Administration $576,145 $474,962 $549,745 $597,895 $610,142 2.0% General Government $538,743 $537,067 $510,650 $696,458 $659,835 -5.3% Municipal Court $11,390 $16,956 $18,587 $18,481 $24,481 32.5% Public Works $139,865 $213,926 $144,572 $497,081 $497,081 0.0% Development Services $147,851 $120,853 $30,853 $70,574 $70,574 0.0% Community Services $529,173 $595,860 $669,432 $898,476 $948,776 5.6% Table of ContentsGeneral Fund FY27 Proposed Budget | Fountain Hills Page 40Meeting Packet Page 43 of 295 Category FY 2023 Actual FY 2024 Actual FY 2025 Actual FY 2026 Adopted Budget FY 2027 Proposed Budget FY 2026 Adopted Budget vs. FY 2027 Proposed Budget (% Change) Fire & Emergency Med $705,152 $2,172,999 $279,266 $345,040 $345,040 0.0% Law Enforcement $4,574,193 $6,225,785 $6,187,857 $5,859,669 $5,794,520 -1.1% Supplies $252,230 $317,329 $362,041 $442,828 $455,003 2.7% Mayor & Council $4,763 $3,580 $7,517 $4,700 $7,700 63.8% Administration $12,208 $14,874 $19,376 $29,465 $40,695 38.1% General Government $8,562 $7,154 $7,053 $6,305 $6,305 0.0% Municipal Court $5,660 $5,701 $6,448 $3,939 $3,939 0.0% Public Works $18,740 $13,318 $17,135 $37,748 $37,748 0.0% Development Services $2,926 $3,278 $3,722 $11,260 $11,260 0.0% Community Services $188,222 $203,109 $222,681 $276,516 $272,961 -1.3% Fire & Emergency Med $11,149 $66,315 $78,110 $72,855 $74,355 2.1% Law Enforcement ---$40 $40 0.0% Equipment/Improvemen $175,596 $432,736 $202,865 $298,260 $298,010 -0.1% Mayor & Council $4,365 $1,580 $153 --0.0% Administration $16,108 $11,724 $60,460 $58,300 $60,750 4.2% General Government $3,024 ----0.0% Municipal Court $5,812 $3,143 $2,022 $260 $260 0.0% Public Works $17,101 $9,862 $13,646 $5,350 $5,350 0.0% Development Services $774 $2,631 $725 $2,800 $2,800 0.0% Community Services $106,851 $51,911 $46,793 $21,050 $12,250 -41.8% Fire & Emergency Med $21,561 $351,885 $79,066 $210,500 $216,600 2.9% Damages/Vandalism $3,532 $727 $8,130 $13,000 $13,650 5.0% Public Works ---$10,900 $10,900 0.0% Community Services $3,532 $727 $8,130 $2,100 $2,750 31.0% Internal Service $338,464 $349,955 $344,813 $362,376 $438,405 21.0% Mayor & Council $5,947 $5,564 $5,623 $5,538 $5,538 0.0% Administration $15,426 $13,280 $13,616 $14,505 $13,956 -3.8% General Government -$2,735 $1,296 -$5,551 -$719 - Municipal Court $4,292 $3,476 $3,572 $3,922 $3,671 -6.4% Public Works $17,842 $17,319 $21,774 $19,728 $25,037 26.9% Development Services $19,966 $18,521 $24,111 $20,503 $32,122 56.7% Community Services $72,463 $76,384 $77,554 $77,467 $84,007 8.4% Fire & Emergency Med $205,262 $214,115 $204,114 $220,713 $273,355 23.9% Contingency ---$1,406,243 $1,227,316 -12.7% General Government ---$1,121,243 $1,002,316 -10.6% Development Services ---$100,000 $70,000 -30.0% Community Services ---$35,000 $35,000 0.0% Fire & Emergency Med ---$150,000 $120,000 -20.0% Capital Expenditures $148,048 $189,436 $160,998 --0.0% Administration --$13,023 --0.0% Public Works $13,193 $19,384 ---0.0% Development Services --$47,907 --0.0% Community Services $77,910 $28,371 $14,558 --0.0% Fire & Emergency Med $56,945 $141,681 $85,510 --0.0% Total Expenditures $15,361,988 $21,722,986 $22,594,710 $26,051,539 $26,800,894 2.9% In FY2023, the Town paid for $3.4 million of its Fire contracted services and another $840k of its MCSO contracted services out of its Special Revenue Fund due to federal grant revenues.  Therefore, FY2023 expenditure amounts shown here in the General Fund do not include those expenditures. Table of ContentsGeneral Fund FY27 Proposed Budget | Fountain Hills Page 41Meeting Packet Page 44 of 295 Fund Balance The Fund Balance chart below shows the actual General Fund ending fund balance for FY2023 through FY2025, and the projected ending General Fund balance for FY2026. Fund Balance Historical and Projected Unassigned Committed Nonspendable Fund Balance FY 2023 FY 2024 FY 2025 FY 2026 FY 2025 vs. FY 2026 (% Change) Unassigned $11,644,005 $13,070,591 $9,726,474 $9,460,000 -2.7% Committed $4,044,890 $4,466,782 $4,999,717 $5,500,000 10.0% Nonspendable $57,465 $38,179 $40,000 $40,000 0.0% Total Fund Balance $15,746,360 $17,575,552 $14,766,191 $15,000,000 1.6% $16M$16M$16M $18M$18M $18M $15M$15M $15M $15M$15M $15M FY2023 FY2024 FY2025 FY2026 0 $5M $10M $15M $20M Financial Summary Table of ContentsGeneral Fund FY27 Proposed Budget | Fountain Hills Page 42Meeting Packet Page 45 of 295 Streets Fund The Streets (HURF) Fund (Fund 200) is funded by 0.2% of local sales tax and State-shared revenues. The State of Arizona taxes motor fuels and collects a variety of fees and charges relating to the registration and operation of motor vehicles. These revenues are deposited in the Arizona Highway User Revenue Fund (HURF) and are then distributed to the cities, towns, and counties and to the State Highway Fund. This fund may only be used for street and highway purposes and is a restricted fund. Summary The Town of Fountain Hills is projecting $4.5M of revenue in FY2027 and budgeted expenditures of $8.27 million to support additional roadwork in the Streets Fund for FY2027. Staff are proposing an increased budget by about $1 million for additional roadwork in Town. Specifically, staff have included $6 million of budgeted expenditures within the maintenance and repair object line item for the Pavement Management Program, an increase of $1 million from the $5 million budgeted for this Program in FY2026. Revenues vs Expenditures Summary Revenue Actual Revenue Surplus Revenue Budgeted Expenditures Actual Expenditures Over Budget Expenditures Budgeted 2023 2024 2025 2026 2027 0 $2M $4M $6M $8M $10M Table of ContentsStreets Fund FY27 Proposed Budget | Fountain Hills Page 43Meeting Packet Page 46 of 295 Comprehensive Fund Summary The following comprehensive fund summary shows FY2023 through FY2025 actual revenues and expenditures compared with the FY2026 adopted budget and FY2027 proposed budget. Prior actual figures do not include transfers in and out of the Streets Fund, which results in the ending fund balances being overstated. For actual and projected fund balance data, please use the fund balance charts later in this section. Comprehensive Fund Summary Category FY 2023 Actual FY 2024 Actual FY 2025 Actual FY 2026 Adopted Budget FY 2027 Proposed Budget FY 2026 Adopted Budget vs. FY 2027 Proposed Budget (% Change) Beginning Fund Balance $3,903,296 $6,922,858 $9,559,630 $11,444,988 $6,100,000 -46.7% Revenues Taxes $1,419,744 $1,417,926 $1,392,501 $1,242,326 $1,279,231 3.0% Intergovernmental Revenue $2,606,929 $2,720,831 $3,190,714 $3,168,457 $3,090,945 -2.4% Charges For Services $4,139 $120 $60 $100,000 $10,000 -90.0% Other $32,602 $46,459 $15,241 $31,000 $31,000 0.0% Investment Earnings $197,804 $558,547 $595,071 $191,193 $105,205 -45.0% Total Revenues $4,261,218 $4,743,883 $5,193,587 $4,732,976 $4,516,381 -4.6% Expenditures Payroll Expenses $570,144 $658,659 $729,998 $816,489 $811,489 -0.6% Dues & Memberships $1,810 $3,127 $1,315 $8,000 $8,000 0.0% Meetings & Training $410 $385 $600 $2,000 $2,000 0.0% Maintenance & Repair $3,465,658 $4,714,716 $5,631,540 $5,320,910 $6,320,910 18.8% Utilities $158,079 $144,904 $145,660 $146,352 $146,923 0.4% Contractual Services $689,650 $559,452 $591,518 $704,190 $713,923 1.4% Supplies $16,953 $14,999 $12,568 $22,620 $22,620 0.0% Equipment/Improvemen $24,060 $15,042 $5,627 $16,500 $16,500 0.0% Damages/Vandalism $38,690 $16,778 $31,575 $40,000 $40,000 0.0% Internal Service $62,872 $67,266 $69,699 $67,566 $87,477 29.5% Contingency ---$100,000 $100,000 0.0% Capital Expenditures $25,676 $115,695 $66,373 --0.0% Total Expenditures $5,054,003 $6,311,022 $7,286,475 $7,244,627 $8,269,842 14.2% Total Revenues Less Expenditures -$792,785 -$1,567,140 -$2,092,888 -$2,511,651 -$3,753,461 49.4% Ending Fund Balance $3,110,511 $5,355,718 $7,466,742 $8,933,337 $2,346,539 -73.7% Table of ContentsStreets Fund FY27 Proposed Budget | Fountain Hills Page 44Meeting Packet Page 47 of 295 Revenues by Source The following charts show FY2023 through FY2025 actual revenues by Source compared with the FY2026 adopted budget and FY2027 proposed budget projected revenues by Source. Historical and Projected Revenues by Source Adopt-A-Street Fee Auction/Recycle Proceeds In-Lieu Fees Restitution/Ins Proceeds Interest Income Vehicle License Tax Sales Tax-Local Highway Users Tax FY27 Revenues by Object Highway Users Tax $1,810,740 40.09% Vehicle License Tax $1,280,205 28.35% Sales Tax-Local $1,279,231 28.32% Interest Income $105,205 2.33% Restitution/Ins Proceeds $30,000 0.66% In-Lieu Fees $10,000 0.22% Auction/Recycle Proceeds $1,000 0.02% Category FY 2023 Actual FY 2024 Actual FY 2025 Actual FY 2026 Adopted Budget FY 2027 Proposed Budget FY 2026 Adopted Budget vs. FY 2027 Proposed Budget (% Change) Sales Tax-Local $1,419,744 $1,417,926 $1,392,501 $1,242,326 $1,279,231 3.0% $4M$4M$4M $5M$5M $5M $5M$5M $5M $5M$5M $5M $5M$5M $5M FY2023 FY2024 FY2025 FY2026 FY2027 0 $2M $4M $6M 4 .52M Revenues by Source Table of ContentsStreets Fund FY27 Proposed Budget | Fountain Hills Page 45Meeting Packet Page 48 of 295 Category FY 2023 Actual FY 2024 Actual FY 2025 Actual FY 2026 Adopted Budget FY 2027 Proposed Budget FY 2026 Adopted Budget vs. FY 2027 Proposed Budget (% Change) Vehicle License Tax $827,570 $869,845 $1,300,912 $1,277,830 $1,280,205 0.2% Highway Users Tax $1,779,359 $1,850,986 $1,889,802 $1,890,627 $1,810,740 -4.2% In-Lieu Fees $3,659 --$100,000 $10,000 -90.0% Adopt-A-Street Fee $480 $120 $60 --0.0% Auction/Recycle Proceeds $755 $1,481 $244 $1,000 $1,000 0.0% Restitution/Ins Proceeds $31,847 $44,978 $14,997 $30,000 $30,000 0.0% Interest Income $197,804 $558,547 $595,071 $191,193 $105,205 -45.0% Total Revenues $4,261,218 $4,743,883 $5,193,587 $4,732,976 $4,516,381 -4.6% Expenditures by Object The following charts show FY2023 through FY2025 actual expenditures by Object compared with the FY2026 adopted budget and FY2027 proposed budget expenditures by Object. Historical and Budgeted Expenditures by Object Meetings & Training Dues & Memberships Equipment/Improvemen Supplies Damages/Vandalism Contingency Capital Expenditures Internal Service Utilities Contractual Services Payroll Expenses Maintenance & Repair $5M$5M$5M $6M$6M $6M $7M$7M $7M $7M$7M $7M $8M$8M $8M FY2023 FY2024 FY2025 FY2026 FY2027 0 $3M $5M $8M $10M Table of ContentsStreets Fund FY27 Proposed Budget | Fountain Hills Page 46Meeting Packet Page 49 of 295 FY27 Expenditures by Object Maintenance & Repair $6,320,910 76.43% Payroll Expenses $811,489 9.81% Contractual Services $713,923 8.63% Utilities $146,923 1.78% Contingency $100,000 1.21% Internal Service $87,477 1.06% Damages/Vandalism $40,000 0.48% Supplies $22,620 0.27% Equipment/Improvemen $16,500 0.20% Dues & Memberships $8,000 0.10% Meetings & Training $2,000 0.02% Category FY 2023 Actual FY 2024 Actual FY 2025 Actual FY 2026 Adopted Budget FY 2027 Proposed Budget FY 2026 Adopted Budget vs. FY 2027 Proposed Budget (% Change) Payroll Expenses $570,144 $658,659 $729,998 $816,489 $811,489 -0.6% Dues & Memberships $1,810 $3,127 $1,315 $8,000 $8,000 0.0% Meetings & Training $410 $385 $600 $2,000 $2,000 0.0% Maintenance & Repair $3,465,658 $4,714,716 $5,631,540 $5,320,910 $6,320,910 18.8% Utilities $158,079 $144,904 $145,660 $146,352 $146,923 0.4% Contractual Services $689,650 $559,452 $591,518 $704,190 $713,923 1.4% Supplies $16,953 $14,999 $12,568 $22,620 $22,620 0.0% Equipment/Improvemen $24,060 $15,042 $5,627 $16,500 $16,500 0.0% Damages/Vandalism $38,690 $16,778 $31,575 $40,000 $40,000 0.0% Internal Service $62,872 $67,266 $69,699 $67,566 $87,477 29.5% Contingency ---$100,000 $100,000 0.0% Capital Expenditures $25,676 $115,695 $66,373 --0.0% Total Expenditures $5,054,003 $6,311,022 $7,286,475 $7,244,627 $8,269,842 14.2% 8.27M Expenditures by Object Table of ContentsStreets Fund FY27 Proposed Budget | Fountain Hills Page 47Meeting Packet Page 50 of 295 Fund Balance The Fund Balance chart below shows the actual Streets Fund ending fund balance for FY2023 through FY2025, and the projected ending Streets Fund balance for FY2026. Fund Balance Historical and Projected Restricted Assigned In FY2026, the Streets Fund balance projection totals $6.1 million, representing a 46.7% decrease from the FY2025 total of $11.4 million. The Fund Balance is projected to decrease substantially due to about $10 million of total roadwork budgeted to be completed in FY2026 (the Streets Fund and Capital Projects Funds both include combined budgetary authority of about $10 million in FY2026, but the Streets Fund will be used as the funding source for all of that roadwork, which will substantially reduce the Streets Fund balance).  Fund Balance FY 2023 FY 2024 FY 2025 FY 2026 FY 2025 vs. FY 2026 (% Change) Assigned -$3,335,921 $3,331,477 $3,000,000 -9.9% Restricted $6,922,858 $6,223,709 $8,113,511 $3,100,000 -61.8% Total Fund Balance $6,922,858 $9,559,630 $11,444,988 $6,100,000 -46.7% $7M$7M$7M $10M$10M$10M $11M$11M $11M $6M$6M $6M FY2023 FY2024 FY2025 FY2026 0 $5M $10M $15M Financial Summary Table of ContentsStreets Fund FY27 Proposed Budget | Fountain Hills Page 48Meeting Packet Page 51 of 295 Capital Projects Fund The Capital Projects Fund (Fund 600) is an assigned fund to account for monies set aside by the Town for its Capital Improvement Plan (CIP) Projects.  CIP projects are planned based on a 5-year outlook to improve resident safety, culture and recreation, and enhance economic development initiatives. The CIP fund receives revenue from 1/2 of the construction sales tax revenues the Town receives and transfers from year-end General Fund reserves, in accordance with financial policies and Council direction. Summary The Town of Fountain Hills is projecting $2.7M of revenue in FY2027, which is less than the prior year due to fewer projects with projected grant revenues. Budgeted expenditures have been proposed at $10 million for staff to move forward the Capital Improvement Plan discussed with Council during a Work Session on March 24 , 2026. See the Capital Projects section of this budget book for more information on budgets for each project. Revenues vs Expenditures Summary Revenue Actual Revenue Budgeted Expenditures Actual Expenditures Budgeted 2023 2024 2025 2026 2027 0 $3M $5M $8M $10M $13M $15M Table of ContentsCapital Projects Fund FY27 Proposed Budget | Fountain Hills Page 49Meeting Packet Page 52 of 295 Comprehensive Fund Summary The following comprehensive fund summary shows FY2023 through FY2025 actual revenues and expenditures compared with the FY2026 adopted budget and FY2027 proposed budget. Prior actual figures do not include transfers in and out of the Capital Projects Fund, which results in the ending fund balances being overstated or understated. For actual and projected fund balance data, please use the fund balance charts later in this section. Revenues by Source The following tables show FY2023 through FY2025 actual and FY2026 adopted budget and FY2027 proposed budget revenues by Source.  Historical and Projected Revenue by Source Other Investment Earnings Intergovernmental Revenue Taxes Comprehensive Fund Summary Category FY 2023 Actual FY 2024 Actual FY 2025 Actual FY 2026 Adopted Budget FY 2027 Proposed Budget FY 2026 Adopted Budget vs. FY 2027 Proposed Budget (% Change) Beginning Fund Balance $4,068,310 $5,691,999 $8,768,198 $8,783,321 $9,000,000 2.5% Revenues Taxes $1,724,626 $1,598,522 $1,485,919 $1,188,207 $1,361,152 14.6% Intergovernmental Revenue $140,284 $376,783 $20,055 $2,190,750 $1,131,250 -48.4% Other -$12,000 $74,381 --0.0% Investment Earnings $132,253 $407,771 $498,270 $170,000 $175,666 3.3% Total Revenues $1,997,163 $2,395,076 $2,078,624 $3,548,957 $2,668,068 -24.8% Expenditures Contractual Services $1,215 $506 $176 $2,800 $1,000 -64.3% Equipment/Improvemen $50,418 ----0.0% Contingency ---$650,000 $696,000 7.1% Capital Expenditures $4,338,774 $3,224,647 $5,058,507 $12,060,000 $9,303,000 -22.9% Total Expenditures $4,390,407 $3,225,153 $5,058,683 $12,712,800 $10,000,000 -21.3% Total Revenues Less Expenditures -$2,393,244 -$830,077 -$2,980,059 -$9,163,843 -$7,331,932 -20.0% Ending Fund Balance $1,675,066 $4,861,922 $5,788,139 -$380,522 $1,668,068 -538.4% $2M$2M$2M $2M$2M$2M $2M$2M$2M $4M$4M$4M $3M$3M $3M FY2023 FY2024 FY2025 FY2026 FY2027 0 $1M $2M $3M $4M Table of ContentsCapital Projects Fund FY27 Proposed Budget | Fountain Hills Page 50Meeting Packet Page 53 of 295 FY27 Revenues by Source Taxes $1,361,152 51.02% Intergovernmental Revenue $1,131,250 42.40% Investment Earnings $175,666 6.58% Category FY 2023 Actual FY 2024 Actual FY 2025 Actual FY 2026 Adopted Budget FY 2027 Proposed Budget FY 2026 Adopted Budget vs. FY 2027 Proposed Budget (% Change) Taxes $1,724,626 $1,598,522 $1,485,919 $1,188,207 $1,361,152 14.6% Intergovernmental Revenue $140,284 $376,783 $20,055 $2,190,750 $1,131,250 -48.4% Other -$12,000 $74,381 --0.0% Investment Earnings $132,253 $407,771 $498,270 $170,000 $175,666 3.3% Total Revenues $1,997,163 $2,395,076 $2,078,624 $3,548,957 $2,668,068 -24.8% Expenditures by Object  The following charts show FY2023 through FY2025 actual expenditures by Object compared with the FY2026 adopted budget and FY2027 proposed budget expenditures by Object for the Capital Projects Fund. Historical and Budgeted Expenditures by Object Contractual Services Equipment/Improvemen Contingency Capital Expenditures 2.67M Revenues by Source $4M$4M$4M $3M$3M $3M $5M$5M $5M $13M$13M$13M $10M$10M $10M FY2023 FY2024 FY2025 FY2026 FY2027 0 $5M $10M $15M Table of ContentsCapital Projects Fund FY27 Proposed Budget | Fountain Hills Page 51Meeting Packet Page 54 of 295 FY27 Expenditures by Object Capital Expenditures $9,303,000 93.03% Contingency $696,000 6.96% Contractual Services $1,000 0.01% Category FY 2023 Actual FY 2024 Actual FY 2025 Actual FY 2026 Adopted Budget FY 2027 Proposed Budget FY 2026 Adopted Budget vs. FY 2027 Proposed Budget (% Change) Contractual Services $1,215 $506 $176 $2,800 $1,000 -64.3% Equipment/Improvemen $50,418 ----0.0% Contingency ---$650,000 $696,000 7.1% Capital Expenditures $4,338,774 $3,224,647 $5,058,507 $12,060,000 $9,303,000 -22.9% Total Expenditures $4,390,407 $3,225,153 $5,058,683 $12,712,800 $10,000,000 -21.3% Fund Balance The Fund Balance chart below shows the actual Capital Projects Fund ending fund balance for FY2023 through FY2025, and the projected ending Capital Projects Fund balance for FY2026. Fund Balance Historical and Projected Assigned 10M Expenditures by Object $6M$6M $6M $9M$9M$9M $9M$9M$9M $9M$9M$9M FY2023 FY2024 FY2025 FY2026 0 $3M $5M $8M $10M Table of ContentsCapital Projects Fund FY27 Proposed Budget | Fountain Hills Page 52Meeting Packet Page 55 of 295 Fund Balance FY 2023 FY 2024 FY 2025 FY 2026 FY 2025 vs. FY 2026 (% Change) Assigned $5,691,999 $8,768,198 $8,783,321 $9,000,000 2.5% Total Fund Balance $5,691,999 $8,768,198 $8,783,321 $9,000,000 2.5% Financial Summary Table of ContentsCapital Projects Fund FY27 Proposed Budget | Fountain Hills Page 53Meeting Packet Page 56 of 295 Facilities Reserve Fund The Facilities Reserve Fund (Fund 610) has been established to cover replacement costs for large-scale items that cannot be absorbed in annual operating budgets. These items include, but are not limited to, roofing, interior and exterior building painting, carpet replacement, physical plant mechanical equipment, and parks and recreation structures. Summary The Town of Fountain Hills is projecting $144K of revenue and budgeted expenditures of $600K in the Facilities Reserve Fund for FY2027.  The Town also funds these operations with budgeted transfers from the General Fund and this fund has been used to accumulate savings for the future Lake Liner project.  The Town is also budgeting to use $400K of this Fund Balance in the Capital Improvement Program, which explains why the operating budget was reduced to account for that project (see Capital Projects section, Library/Museum/Community Center Air Handler Upgrades Project). Revenues vs Expenditures Summary Comprehensive Fund Summary The following comprehensive fund summary shows FY2023 through FY2025 actual revenues and expenditures compared with the FY2026 adopted budget and FY2027 proposed budget. Prior actual figures do not include transfers in and out of the Facilities Reserve Fund, which results in the ending fund balances being overstated. For actual and projected fund balance data, please use the fund balance charts later in this section. Revenue Actual Revenue Surplus Revenue Budgeted Expenditures Actual Expenditures Over Budget Expenditures Budgeted 2023 2024 2025 2026 2027 0 $250K $500K $750K $1,000K $1,250K Table of ContentsFacilities Reserve Fund FY27 Proposed Budget | Fountain Hills Page 54Meeting Packet Page 57 of 295 Revenues by Source The following tables show FY2023 through FY2025 actual and FY2026 adopted budget and FY2027 proposed budget revenues by Source. Historical and Projected Revenue by Source Other Investment Earnings Comprehensive Fund Summary Category FY 2023 Actual FY 2024 Actual FY 2025 Actual FY 2026 Adopted Budget FY 2027 Proposed Budget FY 2026 Adopted Budget vs. FY 2027 Proposed Budget (% Change) Beginning Fund Balance $5,925,920 $6,784,056 $5,384,668 $7,215,124 $8,500,000 17.8% Revenues Other $4,000 ----0.0% Investment Earnings $136,114 $264,030 $360,779 $140,000 $144,302 3.1% Total Revenues $140,114 $264,030 $360,779 $140,000 $144,302 3.1% Expenditures Maintenance & Repair $620,018 $409,914 $269,017 --0.0% Contractual Services $2,164 $5,092 $13,987 --0.0% Equipment/Improvemen $159,797 $25,556 $73,017 --0.0% Contingency ---$1,000,000 $600,000 -40.0% Capital Expenditures -$22,857 $174,302 --0.0% Total Expenditures $781,979 $463,419 $530,324 $1,000,000 $600,000 -40.0% Total Revenues Less Expenditures -$641,864 -$199,388 -$169,544 -$860,000 -$455,698 -47.0% Ending Fund Balance $5,284,056 $6,584,668 $5,215,124 $6,355,124 $8,044,302 26.6% $140K$140K $140K $264K$264K $264K $361K$361K $361K $140K$140K $140K $144K$144K $144K FY2023 FY2024 FY2025 FY2026 FY2027 0 $100K $200K $300K $400K Table of ContentsFacilities Reserve Fund FY27 Proposed Budget | Fountain Hills Page 55Meeting Packet Page 58 of 295 FY27 Revenues by Source Investment Earnings $144,302 100.00% Category FY 2023 Actual FY 2024 Actual FY 2025 Actual FY 2026 Adopted Budget FY 2027 Proposed Budget FY 2026 Adopted Budget vs. FY 2027 Proposed Budget (% Change) Other $4,000 ----0.0% Investment Earnings $136,114 $264,030 $360,779 $140,000 $144,302 3.1% Total Revenues $140,114 $264,030 $360,779 $140,000 $144,302 3.1% Expenditures by Object The following charts show FY2023 through FY2025 actual expenditures by Object compared with the FY2026 adopted budget and FY2027 proposed budget expenditures by Object. Historical and Budgeted Expenditures by Object Contractual Services Capital Expenditures Equipment/Improvemen Maintenance & Repair Contingency 144K Revenues by Source $782K$782K $782K $463K$463K $463K $530K$530K $530K $1M$1M$1M $600K$600K $600K FY2023 FY2024 FY2025 FY2026 FY2027 0 $500K $1,000K $1,500K Table of ContentsFacilities Reserve Fund FY27 Proposed Budget | Fountain Hills Page 56Meeting Packet Page 59 of 295 FY27 Expenditures by Object Contingency $600,000 100.00% Category FY 2023 Actual FY 2024 Actual FY 2025 Actual FY 2026 Adopted Budget FY 2027 Proposed Budget FY 2026 Adopted Budget vs. FY 2027 Proposed Budget (% Change) Maintenance & Repair $620,018 $409,914 $269,017 --0.0% Contractual Services $2,164 $5,092 $13,987 --0.0% Equipment/Improvemen $159,797 $25,556 $73,017 --0.0% Contingency ---$1,000,000 $600,000 -40.0% Capital Expenditures -$22,857 $174,302 --0.0% Total Expenditures $781,979 $463,419 $530,324 $1,000,000 $600,000 -40.0% Fund Balance The Fund Balance chart below shows the actual Facilities Reser ve Fund ending fund balance for FY2023 through FY2025, and the projected ending Facilities Reserve Fund balance for FY2026. About $6.7 million has been saved by the Town Council, specifically for the future Lake Liner replacement project.  This $6.7 million is within the $8.5 million projected ending fund balance for FY2026. Fund Balance Historical and Projected Assigned 600K Expenditures by Object $7M$7M$7M $5M$5M $5M $7M$7M$7M $9M$9M $9M FY2023 FY2024 FY2025 FY2026 0 $3M $5M $8M $10M Table of ContentsFacilities Reserve Fund FY27 Proposed Budget | Fountain Hills Page 57Meeting Packet Page 60 of 295 Fund Balance FY 2023 FY 2024 FY 2025 FY 2026 FY 2025 vs. FY 2026 (% Change) Assigned $6,784,056 $5,384,668 $7,215,124 $8,500,000 17.8% Total Fund Balance $6,784,056 $5,384,668 $7,215,124 $8,500,000 17.8% Financial Summary Table of ContentsFacilities Reserve Fund FY27 Proposed Budget | Fountain Hills Page 58Meeting Packet Page 61 of 295 Special Revenue Fund The Special Revenue/Grants Fund (Fund 400) is restricted by the terms of the individual grants or program funds received. An example of this would be state or federal grant funds. These funds are to be used only for the specific program or programs for which the funds have been awarded and in accordance with all the grant conditions.  Summary The Town of Fountain Hills is projecting revenue and budgeted expenditures of $1.76 million in the Special Revenue Fund for FY2027. The Town uses the Special Revenue Fund for legally, contractually and grant-related restricted revenues that can only be used for specified purposes. While the Town uses this Fund to administer its Ride Choice Program using State Lottery funds, and its Opioid Settlement pass-through payments to a local coalition of youth organization, the Town includes most of the budget within the Special Revenue Fund to be contingency budget authority to only be used on Council-authorized projects or programs using restricted monies. Revenues vs Expenditures Summary The FY2026 proposed budget included $3 million of revenues and expenditures for a possible one-time pass-through federal grant for the local International Dark Sky Discovery Center. However, the grant application was unsuccessful. Revenue Actual Revenue Budgeted Expenditures Actual Expenditures Budgeted 2023 2024 2025 2026 2027 0 $3M $5M $8M $10M $13M Table of ContentsSpecial Revenue Fund FY27 Proposed Budget | Fountain Hills Page 59Meeting Packet Page 62 of 295 Comprehensive Fund Summary The following comprehensive fund summary shows FY2023 through FY2025 actual revenues and expenditures compared with the FY2026 adopted budget and FY2027 proposed budget. Prior actual figures do not include transfers in and out of the Special Revenue Fund, which results in the ending fund balances being overstated. For actual and projected fund balance data, please use the fund balance charts later in this section. Revenues by Source The following tables show FY2023 through FY2025 actual and FY2026 adopted budget and FY2027 proposed budget revenues by Source.  Comprehensive Fund Summary Category FY 2023 Actual FY 2024 Actual FY 2025 Actual FY 2026 Adopted Budget FY 2027 Proposed Budget FY 2026 Adopted Budget vs. FY 2027 Proposed Budget (% Change) Beginning Fund Balance $8,441 $73,163 $121,032 $66,295 $60,000 -9.5% Revenues Intergovernmental Revenue $4,537,354 $129,589 $696,550 $4,690,000 $1,750,000 -62.7% Other --$8,150 -$5,660 - Investment Earnings $95,043 $15,303 $5,180 --0.0% Total Revenues $4,632,397 $144,892 $709,881 $4,690,000 $1,755,660 -62.6% Expenditures Meetings & Training --$13,500 --0.0% Maintenance & Repair $1,525 $1,647 $1,785 -$1,560 - Contractual Services $4,595,500 $257,829 $201,890 $190,000 $254,100 33.7% Supplies --$810 --0.0% Equipment/Improvemen -$5,660 $13,860 --0.0% Contingency ---$4,500,000 $1,500,000 -66.7% Capital Expenditures -$11,000 $532,773 --0.0% Total Expenditures $4,597,025 $276,137 $764,618 $4,690,000 $1,755,660 -62.6% Total Revenues Less Expenditures $35,372 -$131,245 -$54,737 --0.0% Ending Fund Balance $43,813 -$58,082 $66,295 $66,295 $60,000 -9.5% Table of ContentsSpecial Revenue Fund FY27 Proposed Budget | Fountain Hills Page 60Meeting Packet Page 63 of 295 Historical Actual and Projected Revenue by Source Other Investment Earnings Intergovernmental Revenue FY27 Revenues by Source Intergovernmental Revenue $1,750,000 99.68% Other $5,660 0.32% Category FY 2023 Actual FY 2024 Actual FY 2025 Actual FY 2026 Adopted Budget FY 2027 Proposed Budget FY 2026 Adopted Budget vs. FY 2027 Proposed Budget (% Change) Intergovernmental Revenue $4,537,354 $129,589 $696,550 $4,690,000 $1,750,000 -62.7% Other --$8,150 -$5,660 - Investment Earnings $95,043 $15,303 $5,180 --0.0% Total Revenues $4,632,397 $144,892 $709,881 $4,690,000 $1,755,660 -62.6% Expenditures by Object The following charts show FY2023 through FY2025 actual expenditures by Object compared with the FY2026 adopted budget and FY2027 proposed budget expenditures by Object. While reviewing this chart, please consider that FY2023 public safety expenditures that are normally paid by the General Fund were paid for by the Town's Special Revenue Fund. $5M$5M$5M $145K$145K $145K $710K$710K $710K $5M$5M$5M $2M$2M$2M FY2023 FY2024 FY2025 FY2026 FY2027 0 $2M $4M $6M 1.76M Revenues by Source Table of ContentsSpecial Revenue Fund FY27 Proposed Budget | Fountain Hills Page 61Meeting Packet Page 64 of 295 Historical and Budgeted Expenditures by Object Supplies Maintenance & Repair Meetings & Training Equipment/Improvemen Capital Expenditures Contractual Services Contingency FY27 Expenditures by Object Contingency $1,500,000 85.44% Contractual Services $254,100 14.47% Maintenance & Repair $1,560 0.09% Category FY 2023 Actual FY 2024 Actual FY 2025 Actual FY 2026 Adopted Budget FY 2027 Proposed Budget FY 2026 Adopted Budget vs. FY 2027 Proposed Budget (% Change) Meetings & Training --$13,500 --0.0% Maintenance & Repair $1,525 $1,647 $1,785 -$1,560 - Contractual Services $4,595,500 $257,829 $201,890 $190,000 $254,100 33.7% Supplies --$810 --0.0% Equipment/Improvemen -$5,660 $13,860 --0.0% Contingency ---$4,500,000 $1,500,000 -66.7% Capital Expenditures -$11,000 $532,773 --0.0% Total Expenditures $4,597,025 $276,137 $764,618 $4,690,000 $1,755,660 -62.6% $5M$5M$5M $276K$276K $276K $765K$765K $765K $5M$5M$5M $2M$2M$2M FY2023 FY2024 FY2025 FY2026 FY2027 0 $2M $4M $6M 1.76M Expenditures by Object Table of ContentsSpecial Revenue Fund FY27 Proposed Budget | Fountain Hills Page 62Meeting Packet Page 65 of 295 While reviewing this chart, please consider that over $4 million of FY2023 public safety expenditures were paid from the Town's Special Revenue Fund, using federal grant monies. Fund Balance The Fund Balance chart below shows the actual Special Revenue Fund ending fund balance for FY2023 through FY2025, and the projected ending Special Revenue Fund balance for FY2026. Fund Balance Historical and Projected Assigned Restricted Nonspendable Fund Balance FY 2023 FY 2024 FY 2025 FY 2026 FY 2025 vs. FY 2026 (% Change) Assigned -$80,902 $66,295 $40,000 -39.7% Restricted $73,163 $26,630 -$20,000 - Nonspendable -$13,500 --0.0% Total Fund Balance $73,163 $121,032 $66,295 $60,000 -9.5% $73K$73K $73K $121K$121K $121K $66K$66K $66K $60K$60K $60K FY2023 FY2024 FY2025 FY2026 0 $50K $100K $150K Financial Summary Table of ContentsSpecial Revenue Fund FY27 Proposed Budget | Fountain Hills Page 63Meeting Packet Page 66 of 295 Economic Development Funds The Economic Development Division operates out of these three funds: Economic Development Fund, Downtown Strategy Fund, and Tourism Fund which have been established to account for local sales tax revenues and grant revenues to be used for these purposes. The Town deposits 0.08% and 0.02% of local sales tax collections into the Economic Development Fund and Downtown Strategy Fund, respectively, and deposits Tourism grant revenues and transfers into the Tourism Fund. Summary The Town of Fountain Hills is projecting $820K of revenue and budgeted expenditures of $989K across all three funds managed by the Economic Development Division for FY2027. Revenues vs Expenditures Summary Revenue Actual Revenue Surplus Revenue Budgeted Expenditures Actual Expenditures Over Budget Expenditures Budgeted 2023 2024 2025 2026 2027 0 $250K $500K $750K $1,000K $1,250K Table of ContentsEconomic Development Funds FY27 Proposed Budget | Fountain Hills Page 64Meeting Packet Page 67 of 295 Comprehensive Fund Summary The following comprehensive fund summary shows FY2023 through FY2025 actual revenues and expenditures compared with the FY2026 adopted budget and FY2027 proposed budget. Prior actual figures do not include transfers in and out of the Economic Development Funds, which results in the ending fund balances being overstated. For actual and projected fund balance data, please use the fund balance charts later in this section. Revenues by Fund The following tables show FY2023 through FY2025 actual and FY2026 adopted budget and FY2027 proposed budget revenues by Fund.  Comprehensive Fund Summary Category FY 2023 Actual FY 2024 Actual FY 2025 Actual FY 2026 Adopted Budget FY 2027 Proposed Budget FY 2026 Adopted Budget vs. FY 2027 Proposed Budget (% Change) Beginning Fund Balance $759,268 $1,353,076 $1,618,138 $1,732,178 $1,650,000 -4.7% Revenues Taxes $709,872 $708,963 $696,251 $621,163 $639,615 3.0% Intergovernmental Revenue $113,360 $119,793 $136,726 $150,000 $150,000 0.0% Other $8,572 $3,642 $2,487 --0.0% Investment Earnings $40,305 $78,452 $79,408 $27,596 $30,644 11.0% Total Revenues $872,109 $910,850 $914,872 $798,759 $820,259 2.7% Expenditures Payroll Expenses $217,803 $248,750 $225,021 $299,008 $311,091 4.0% Dues & Memberships $9,470 $2,605 $5,358 $1,854 $5,307 186.2% Meetings & Training $3,275 $4,826 $6,100 $9,820 $9,320 -5.1% Maintenance & Repair $77,897 $40,130 $69,909 $76,905 $77,848 1.2% Utilities --$325 $2,050 -- Contractual Services $172,061 $347,295 $481,471 $570,078 $518,630 -9.0% Supplies $29,091 $11,681 $15,241 $7,280 $23,680 225.3% Equipment/Improvemen $43 -$230 $1,000 $1,000 0.0% Internal Service $2,283 $1,713 $2,026 $2,008 $2,314 15.2% Transfers Out $97,340 ----0.0% Capital Expenditures ----$40,000 - Total Expenditures $609,263 $657,000 $805,682 $970,003 $989,190 2.0% Total Revenues Less Expenditures $262,846 $253,850 $109,191 -$171,244 -$168,931 -1.4% Ending Fund Balance $1,022,114 $1,606,926 $1,727,329 $1,560,934 $1,481,069 -5.1% Table of ContentsEconomic Development Funds FY27 Proposed Budget | Fountain Hills Page 65Meeting Packet Page 68 of 295 Historical and Projected Revenue by Fund Tourism Fund Downtown Strategy Fund Economic Development Fund FY27 Revenues by Fund Economic Development Fund $525,042 64.01% Tourism Fund $153,126 18.67% Downtown Strategy Fund $142,091 17.32% Category FY 2023 Actual FY 2024 Actual FY 2025 Actual FY 2026 Adopted Budget FY 2027 Proposed Budget FY 2026 Adopted Budget vs. FY 2027 Proposed Budget (% Change) Downtown Strategy Fund $161,955 $175,491 $172,994 $138,063 $142,091 2.9% Economic Development Fund $588,144 $607,835 $591,160 $507,696 $525,042 3.4% Tourism Fund $122,010 $127,524 $150,719 $153,000 $153,126 0.1% Total Revenues $872,109 $910,850 $914,872 $798,759 $820,259 2.7% $872K$872K $872K $911K$911K $911K $915K$915K $915K $799K$799K $799K $820K$820K $820K FY2023 FY2024 FY2025 FY2026 FY2027 0 $250K $500K $750K $1,000K 820K Revenues by Fund Table of ContentsEconomic Development Funds FY27 Proposed Budget | Fountain Hills Page 66Meeting Packet Page 69 of 295 Revenues by Source The following tables show FY2023 through FY2025 actual and FY2026 adopted budget and FY2027 proposed budget revenues by Source.  Historical and Projected Revenue by Source Other Investment Earnings Intergovernmental Revenue Taxes FY27 Revenues by Source Taxes $639,615 77.98% Intergovernmental Revenue $150,000 18.29% Investment Earnings $30,644 3.74% Category FY 2023 Actual FY 2024 Actual FY 2025 Actual FY 2026 Adopted Budget FY 2027 Proposed Budget FY 2026 Adopted Budget vs. FY 2027 Proposed Budget (% Change) Taxes $709,872 $708,963 $696,251 $621,163 $639,615 3.0% Downtown Strategy Fund $141,974 $141,793 $139,250 $124,233 $127,923 3.0% Economic Development Fund $567,898 $567,170 $557,001 $496,930 $511,692 3.0% Intergovernmental Revenue $113,360 $119,793 $136,726 $150,000 $150,000 0.0% $872K$872K $872K $911K$911K $911K $915K$915K $915K $799K$799K $799K $820K$820K $820K FY2023 FY2024 FY2025 FY2026 FY2027 0 $250K $500K $750K $1,000K 820K Revenues by Source Table of ContentsEconomic Development Funds FY27 Proposed Budget | Fountain Hills Page 67Meeting Packet Page 70 of 295 Category FY 2023 Actual FY 2024 Actual FY 2025 Actual FY 2026 Adopted Budget FY 2027 Proposed Budget FY 2026 Adopted Budget vs. FY 2027 Proposed Budget (% Change) Tourism Fund $113,360 $119,793 $136,726 $150,000 $150,000 0.0% Other $8,572 $3,642 $2,487 --0.0% Downtown Strategy Fund $4,500 ----0.0% Economic Development Fund $4,058 $2,534 $1,411 --0.0% Tourism Fund $14 $1,108 $1,076 --0.0% Investment Earnings $40,305 $78,452 $79,408 $27,596 $30,644 11.0% Downtown Strategy Fund $15,480 $33,698 $33,743 $13,830 $14,168 2.4% Economic Development Fund $16,188 $38,131 $32,749 $10,766 $13,350 24.0% Tourism Fund $8,637 $6,623 $12,916 $3,000 $3,126 4.2% Total Revenues $872,109 $910,850 $914,872 $798,759 $820,259 2.7% Expenditures by Fund The following tables show FY2023 through FY2025 actual and FY2026 adopted budget and FY2027 proposed budget expenditures by Fund.  Historical and Budgeted Expenditures by Fund Downtown Strategy Fund Tourism Fund Economic Development Fund $609K$609K $609K $657K$657K $657K $806K$806K $806K $970K$970K $970K $989K$989K $989K FY2023 FY2024 FY2025 FY2026 FY2027 0 $500K $1,000K $1,500K Table of ContentsEconomic Development Funds FY27 Proposed Budget | Fountain Hills Page 68Meeting Packet Page 71 of 295 FY27 Expenditures by Fund Economic Development Fund $503,234 50.87% Tourism Fund $245,756 24.84% Downtown Strategy Fund $240,200 24.28% Category FY 2023 Actual FY 2024 Actual FY 2025 Actual FY 2026 Adopted Budget FY 2027 Proposed Budget FY 2026 Adopted Budget vs. FY 2027 Proposed Budget (% Change) Downtown Strategy Fund $54,623 $109,910 $156,114 $165,200 $240,200 45.4% Maintenance & Repair $1,553 $1,176 $13,238 $6,800 $21,800 220.6% Contractual Services $53,070 $108,734 $142,849 $158,400 $178,400 12.6% Supplies --$27 --0.0% Capital Expenditures ----$40,000 - Economic Development Fund $306,816 $216,703 $260,196 $471,378 $503,234 6.8% Wages $122,433 $139,100 $146,030 $246,687 $256,060 3.8% Employment Taxes $2,139 $2,414 $2,580 $4,408 $4,548 3.2% Benefits $22,675 $24,974 $11,997 $47,913 $50,483 5.4% Dues & Memberships $1,665 $1,785 $4,223 $1,299 $3,614 178.2% Meetings & Training $2,610 $3,937 $4,585 $6,320 $6,320 0.0% Maintenance & Repair $13,193 $14,589 $15,335 $20,325 $20,268 -0.3% Utilities --$325 --0.0% Contractual Services $22,663 $27,492 $66,742 $143,269 $150,260 4.9% Supplies $20,978 $1,449 $7,067 $400 $10,400 2,500.0% Equipment/Improvemen --$230 --0.0% Internal Service $1,122 $962 $1,081 $757 $1,281 69.2% Transfers Out $97,340 ----0.0% Tourism Fund $247,824 $330,387 $389,372 $333,425 $245,756 -26.3% Wages $56,894 $66,114 $56,645 --0.0% Employment Taxes $1,052 $1,183 $1,099 --0.0% Benefits $12,611 $14,965 $6,669 --0.0% Dues & Memberships $7,805 $820 $1,135 $555 $1,693 205.0% Meetings & Training $665 $888 $1,516 $3,500 $3,000 -14.3% Maintenance & Repair $63,152 $24,365 $41,336 $49,780 $35,780 -28.1% Utilities ---$2,050 -- 989K Expenditures by Fund Table of ContentsEconomic Development Funds FY27 Proposed Budget | Fountain Hills Page 69Meeting Packet Page 72 of 295 Category FY 2023 Actual FY 2024 Actual FY 2025 Actual FY 2026 Adopted Budget FY 2027 Proposed Budget FY 2026 Adopted Budget vs. FY 2027 Proposed Budget (% Change) Contractual Services $96,328 $211,068 $271,880 $268,409 $189,970 -29.2% Supplies $8,113 $10,233 $8,147 $6,880 $13,280 93.0% Equipment/Improvemen $43 --$1,000 $1,000 0.0% Internal Service $1,162 $751 $945 $1,251 $1,033 -17.4% Total Expenditures $609,263 $657,000 $805,682 $970,003 $989,190 2.0% Up through FY2025, the Economic Development Analyst position was paid from the Tourism Fund. Beginning in FY2026, the Town began paying for the Analyst's payroll expenses from the Economic Development Fund, which explains why expenditures shifted between funds for FY2026 in the table above. This move was made because the Economic Development Fund has stronger revenue sources and more existing fund balance than the Tourism Fund. Expenditures by Object Historical and Budgeted Expenditures by Object Equipment/Improvemen Utilities Internal Service Dues & Memberships Meetings & Training Capital Expenditures Supplies Transfers Out Maintenance & Repair Payroll Expenses Contractual Services $609K$609K $609K $657K$657K $657K $806K$806K $806K $970K$970K $970K $989K$989K $989K FY2023 FY2024 FY2025 FY2026 FY2027 0 $500K $1,000K $1,500K Table of ContentsEconomic Development Funds FY27 Proposed Budget | Fountain Hills Page 70Meeting Packet Page 73 of 295 FY27 Expenditures by Object Contractual Services $518,630 52.43% Payroll Expenses $311,091 31.45% Maintenance & Repair $77,848 7.87% Capital Expenditures $40,000 4.04% Supplies $23,680 2.39% Meetings & Training $9,320 0.94% Dues & Memberships $5,307 0.54% Internal Service $2,314 0.23% Equipment/Improvemen $1,000 0.10% Category FY 2023 Actual FY 2024 Actual FY 2025 Actual FY 2026 Adopted Budget FY 2027 Proposed Budget FY 2026 Adopted Budget vs. FY 2027 Proposed Budget (% Change) Payroll Expenses $217,803 $248,750 $225,021 $299,008 $311,091 4.04% Dues & Memberships $9,470 $2,605 $5,358 $1,854 $5,307 186.25% Meetings & Training $3,275 $4,826 $6,100 $9,820 $9,320 -5.09% Maintenance & Repair $77,897 $40,130 $69,909 $76,905 $77,848 1.23% Utilities --$325 $2,050 -- Contractual Services $172,061 $347,295 $481,471 $570,078 $518,630 -9.02% Supplies $29,091 $11,681 $15,241 $7,280 $23,680 225.27% Equipment/Improvemen $43 -$230 $1,000 $1,000 0.00% Internal Service $2,283 $1,713 $2,026 $2,008 $2,314 15.24% Transfers Out $97,340 ----0.00% Capital Expenditures ----$40,000 - Total Expenditures $609,263 $657,000 $805,682 $970,003 $989,190 1.98% 989K Expenditures by Object Table of ContentsEconomic Development Funds FY27 Proposed Budget | Fountain Hills Page 71Meeting Packet Page 74 of 295 Fund Balance The Fund Balance chart below shows the actual Economic Development Funds combined ending fund balances for FY2023 through FY2025, and the projected ending combined balances for FY2026. Fund Balance Historical and Projected Assigned Nonspendable Fund Balance FY 2023 FY 2024 FY 2025 FY 2026 FY 2025 vs. FY 2026 (% Change) Assigned $1,353,076 $1,616,678 $1,732,178 $1,650,000 -4.7% Nonspendable -$1,460 --0.0% Total Fund Balance $1,353,076 $1,618,138 $1,732,178 $1,650,000 -4.7% $1M$1M$1M $2M$2M$2M $2M$2M$2M $2M$2M$2M FY2023 FY2024 FY2025 FY2026 0 $500K $1,000K $1,500K $2,000K Financial Summary Table of ContentsEconomic Development Funds FY27 Proposed Budget | Fountain Hills Page 72Meeting Packet Page 75 of 295 All NonMajor Funds All 11 other funds are presented on this page, including the following: Streets, Fire, and Park Development Impact Fees (Capital Funds); Public Art Fund; Court Enhancement Fund; Cottonwoods Maintenance District (special taxing legally separate district); Eagle Mountain Community Facilities District (special taxing legally separate district); Technology and Vehicle Replacement Funds (Internal Service); General Obligation Bond and Municipal Property Corporation Funds (Debt Ser vice) The Finance Division did not budget any revenues or expenditures in the Eagle Mountain Community Facilities District Fund, because the District Board and Town Council will consider closure of the District in June 2026. Summary The Town of Fountain Hills is projecting $1.8M of revenue and budgeting $789K of expenditures across 10 non-major funds in FY2027. While the budgeted expenditures are relatively level from the prior year, the projected revenues are increasing substantially because the Town Council adopted a new Development Impact Fee schedule that went into effect on April 6, 2026. Revenues vs Expenditures Summary Comprehensive Fund Summary The following comprehensive fund summary shows FY2023 through FY2025 actual revenues and expenditures compared with the FY2026 adopted budget and FY2027 proposed budget. Prior actual figures do not include transfers in and out of the NonMajor Funds, which results in the ending fund balances being overstated. For actual and projected fund balance data, please use the fund balance charts later in this section. Revenue Actual Revenue Surplus Revenue Budgeted Expenditures Actual Expenditures Over Budget Expenditures Budgeted 2023 2024 2025 2026 2027 0 $500K $1,000K $1,500K $2,000K Table of ContentsAll NonMajor Funds FY27 Proposed Budget | Fountain Hills Page 73Meeting Packet Page 76 of 295 Revenues by Fund The following tables show FY2023 through FY2025 actual and FY2026 adopted budget and FY2027 proposed budget revenues by Fund. Comprehensive Fund Summary Category FY 2023 Actual FY 2024 Actual FY 2025 Actual FY 2026 Adopted Budget FY 2027 Proposed Budget FY 2026 Adopted Budget vs. FY 2027 Proposed Budget (% Change) Beginning Fund Balance $4,355,888 $5,021,344 $5,525,415 $6,219,886 $4,903,500 -21.2% Revenues Taxes $7,908 $9,841 $10,509 $11,606 $12,342 6.3% Transfers In $404,821 $419,994 $418,029 $433,848 $523,561 20.7% Licenses & Permits $380,962 $323,749 $236,206 $507,465 $992,864 95.7% Charges For Services $16,193 $5,000 $37,559 $100,000 $100,000 0.0% Other $42,326 $20,725 $17,125 --0.0% Fines & Forfeitures $28,535 $28,097 $30,235 $33,000 $52,000 57.6% Investment Earnings $164,400 $262,023 $267,096 $92,722 $91,272 -1.6% Total Revenues $1,045,143 $1,069,428 $1,016,759 $1,178,641 $1,772,039 50.3% Expenditures Dues & Memberships $10 $10 $10 $10 $10 0.0% Maintenance & Repair $18,307 $30,925 $40,434 $36,250 $36,684 1.2% Contractual Services $12,978 $13,298 $15,945 $104,669 $55,384 -47.1% Supplies --$1,004 $50 $50 0.0% Equipment/Improvemen $44,776 $45,000 $69,236 $47,500 $57,500 21.1% Transfers Out $275,000 ----0.0% Contingency ---$84,000 $84,000 0.0% Capital Expenditures $39,602 $93,222 $10,374 $454,100 $555,000 22.2% Debt Service ---$850 $850 0.0% Total Expenditures $390,673 $182,455 $137,002 $727,429 $789,478 8.5% Total Revenues Less Expenditures $654,470 $886,974 $879,756 $451,212 $982,561 117.8% Ending Fund Balance $5,010,358 $5,908,318 $6,405,171 $6,671,098 $5,886,061 -11.8% Table of ContentsAll NonMajor Funds FY27 Proposed Budget | Fountain Hills Page 74Meeting Packet Page 77 of 295 Historical and Projected Revenues by Fund Eagle Mtn CFD Debt Serv MPC Debt Serv GO Bond Debt Serv Cottonwoods Maint Dist Court Enhancement Fund Fire/EMS Dev Fee Public Art Fund Technology Repl Fund Streets Dev Fee Park/Rec Dev Fee Vehicle/Equip Repl Fund FY27 Revenues by Fund Vehicle/Equip Repl Fund $507,102 28.62% Park/Rec Dev Fee $475,112 26.81% Streets Dev Fee $380,179 21.45% Fire/EMS Dev Fee $168,618 9.52% Public Art Fund $101,289 5.72% Technology Repl Fund $65,511 3.70% Court Enhancement Fund $60,641 3.42% Cottonwoods Maint Dist $12,770 0.72% GO Bond Debt Serv $566 0.03% MPC Debt Serv $251 0.01% Category FY 2023 Actual FY 2024 Actual FY 2025 Actual FY 2026 Adopted Budget FY 2027 Proposed Budget FY 2026 Adopted Budget vs. FY 2027 Proposed Budget (% Change) Public Art Fund $19,699 $7,904 $56,631 $100,820 $101,289 0.5% Court Enhancement Fund $28,696 $28,255 $42,664 $41,789 $60,641 45.1% $1M$1M $1M $1M$1M $1M $1M$1M $1M $1M$1M $1M $2M$2M$2M FY2023 FY2024 FY2025 FY2026 FY2027 0 $500K $1,000K $1,500K $2,000K 1.77M Revenues by Fund Table of ContentsAll NonMajor Funds FY27 Proposed Budget | Fountain Hills Page 75Meeting Packet Page 78 of 295 Category FY 2023 Actual FY 2024 Actual FY 2025 Actual FY 2026 Adopted Budget FY 2027 Proposed Budget FY 2026 Adopted Budget vs. FY 2027 Proposed Budget (% Change) GO Bond Debt Serv $4,711 $8,535 $2,061 $500 $566 13.2% Eagle Mtn CFD Debt Serv $710 $1,062 $190 --0.0% MPC Debt Serv $402 $628 $533 $200 $251 25.5% Cottonwoods Maint Dist $9,332 $10,729 $11,359 $12,006 $12,770 6.4% Fire/EMS Dev Fee $30,676 $31,756 $18,004 $21,330 $168,618 690.5% Streets Dev Fee $206,286 $214,589 $152,156 $281,368 $380,179 35.1% Park/Rec Dev Fee $222,998 $199,094 $181,499 $237,728 $475,112 99.9% Technology Repl Fund $70,389 $70,653 $71,514 $65,511 $65,511 0.0% Vehicle/Equip Repl Fund $451,244 $496,223 $480,148 $417,389 $507,102 21.5% Total Revenues $1,045,143 $1,069,428 $1,016,759 $1,178,641 $1,772,039 50.3% Revenues by Source The following tables show FY2023 through FY2025 actual and FY2026 adopted budget and FY2027 proposed budget revenues by Source. Historical and Projected Revenue by Source Taxes Other Fines & Forfeitures Charges For Services Investment Earnings Transfers In Licenses & Permits $1M$1M $1M $1M$1M $1M $1M$1M $1M $1M$1M $1M $2M$2M$2M FY2023 FY2024 FY2025 FY2026 FY2027 0 $500K $1,000K $1,500K $2,000K Table of ContentsAll NonMajor Funds FY27 Proposed Budget | Fountain Hills Page 76Meeting Packet Page 79 of 295 FY27 Revenues by Source Licenses & Permits $992,864 56.03% Transfers In $523,561 29.55% Charges For Services $100,000 5.64% Investment Earnings $91,272 5.15% Fines & Forfeitures $52,000 2.93% Taxes $12,342 0.70% Category FY 2023 Actual FY 2024 Actual FY 2025 Actual FY 2026 Adopted Budget FY 2027 Proposed Budget FY 2026 Adopted Budget vs. FY 2027 Proposed Budget (% Change) Taxes $7,908 $9,841 $10,509 $11,606 $12,342 6.3% GO Bond Debt Serv -$870 $26 ---0.0% Cottonwoods Maint Dist $8,778 $9,815 $10,509 $11,606 $12,342 6.3% Transfers In $404,821 $419,994 $418,029 $433,848 $523,561 20.7% Technology Repl Fund $65,017 $62,000 $62,002 $65,511 $65,511 0.0% Vehicle/Equip Repl Fund $339,804 $357,994 $356,027 $368,337 $458,050 24.4% Licenses & Permits $380,962 $323,749 $236,206 $507,465 $992,864 95.7% Fire/EMS Dev Fee $16,027 $9,738 $8,114 $17,228 $164,445 854.5% Streets Dev Fee $190,125 $181,726 $113,689 $266,141 $380,179 42.8% Park/Rec Dev Fee $174,811 $132,285 $114,403 $224,096 $448,240 100.0% Charges For Services $16,193 $5,000 $37,559 $100,000 $100,000 0.0% Public Art Fund $16,193 $5,000 $37,559 $100,000 $100,000 0.0% Other $42,326 $20,725 $17,125 --0.0% Public Art Fund $1,000 -$17,000 --0.0% GO Bond Debt Serv $38 -$125 --0.0% Technology Repl Fund $5 ----0.0% Vehicle/Equip Repl Fund $41,283 $20,725 ---0.0% Fines & Forfeitures $28,535 $28,097 $30,235 $33,000 $52,000 57.6% Court Enhancement Fund $28,535 $28,097 $30,235 $33,000 $52,000 57.6% Investment Earnings $164,400 $262,023 $267,096 $92,722 $91,272 -1.6% Public Art Fund $2,506 $2,904 $2,072 $820 $1,289 57.2% Court Enhancement Fund $162 $159 $12,429 $8,789 $8,641 -1.7% GO Bond Debt Serv $5,543 $8,509 $1,936 $500 $566 13.2% Eagle Mtn CFD Debt Serv $710 $1,062 $190 --0.0% 1.77M Revenues by Source Table of ContentsAll NonMajor Funds FY27 Proposed Budget | Fountain Hills Page 77Meeting Packet Page 80 of 295 Category FY 2023 Actual FY 2024 Actual FY 2025 Actual FY 2026 Adopted Budget FY 2027 Proposed Budget FY 2026 Adopted Budget vs. FY 2027 Proposed Budget (% Change) MPC Debt Serv $402 $628 $533 $200 $251 25.5% Cottonwoods Maint Dist $555 $914 $850 $400 $428 7.0% Fire/EMS Dev Fee $14,650 $22,018 $9,890 $4,102 $4,173 1.7% Streets Dev Fee $16,161 $32,863 $38,467 $15,227 -- Park/Rec Dev Fee $48,188 $66,809 $67,096 $13,632 $26,872 97.1% Technology Repl Fund $5,367 $8,653 $9,512 --0.0% Vehicle/Equip Repl Fund $70,157 $117,504 $124,121 $49,052 $49,052 0.0% Total Revenues $1,045,143 $1,069,428 $1,016,759 $1,178,641 $1,772,039 50.3% Expenditures by Fund The following tables show FY2023 through FY2025 actual and FY2026 adopted budget and FY2027 proposed budget expenditures by Fund. Historical and Budgeted Expenditures by Fund GO Bond Debt Serv Eagle Mtn CFD Debt Serv MPC Debt Serv Fire/EMS Dev Fee Streets Dev Fee Cottonwoods Maint Dist Public Art Fund Technology Repl Fund Court Enhancement Fund Park/Rec Dev Fee Vehicle/Equip Repl Fund $391K$391K $391K $182K$182K $182K $137K$137K $137K $727K$727K $727K $789K$789K $789K FY2023 FY2024 FY2025 FY2026 FY2027 0 $250K $500K $750K $1,000K Table of ContentsAll NonMajor Funds FY27 Proposed Budget | Fountain Hills Page 78Meeting Packet Page 81 of 295 FY27 Expenditures by Fund Vehicle/Equip Repl Fund $580,000 73.47% Court Enhancement Fund $87,500 11.08% Technology Repl Fund $50,000 6.33% Public Art Fund $42,777 5.42% Cottonwoods Maint Dist $16,341 2.07% Park/Rec Dev Fee $4,000 0.51% Streets Dev Fee $4,000 0.51% Fire/EMS Dev Fee $4,000 0.51% MPC Debt Serv $510 0.06% GO Bond Debt Serv $350 0.04% Category FY 2023 Actual FY 2024 Actual FY 2025 Actual FY 2026 Adopted Budget FY 2027 Proposed Budget FY 2026 Adopted Budget vs. FY 2027 Proposed Budget (% Change) Public Art Fund $23,756 $31,464 $33,194 $40,214 $42,777 6.4% Court Enhancement Fund $15,929 $5,000 $50,087 $77,500 $87,500 12.9% GO Bond Debt Serv ---$350 $350 0.0% Eagle Mtn CFD Debt Serv $88 $198 $443 $200 -- MPC Debt Serv $10 $10 $10 $510 $510 0.0% Cottonwoods Maint Dist $7,351 $7,561 $8,463 $15,605 $16,341 4.7% Fire/EMS Dev Fee ---$1,964 $4,000 103.7% Streets Dev Fee ---$31,146 $4,000 -87.2% Park/Rec Dev Fee $275,000 --$30,840 $4,000 -87.0% Technology Repl Fund $28,936 $45,000 $44,807 $50,000 $50,000 0.0% Vehicle/Equip Repl Fund $39,602 $93,222 -$479,100 $580,000 21.1% Total Expenditures $390,673 $182,455 $137,002 $727,429 $789,478 8.5% 789K Expenditures by Fund Table of ContentsAll NonMajor Funds FY27 Proposed Budget | Fountain Hills Page 79Meeting Packet Page 82 of 295 Expenditures by Object The following tables show FY2023 through FY2025 actual and FY2026 adopted budget and FY2027 proposed budget expenditures by Object. Historical and Budgeted Expenditures by Object Dues & Memberships Supplies Debt Service Maintenance & Repair Contingency Contractual Services Equipment/Improvemen Transfers Out Capital Expenditures FY27 Expenditures by Object Capital Expenditures $555,000 70.30% Contingency $84,000 10.64% Equipment/Improvemen $57,500 7.28% Contractual Services $55,384 7.02% Maintenance & Repair $36,684 4.65% Debt Service $850 0.11% Supplies $50 0.01% Dues & Memberships $10 0.00% $391K$391K $391K $182K$182K $182K $137K$137K $137K $727K$727K $727K $789K$789K $789K FY2023 FY2024 FY2025 FY2026 FY2027 0 $250K $500K $750K $1,000K 789K Table of ContentsAll NonMajor Funds FY27 Proposed Budget | Fountain Hills Page 80Meeting Packet Page 83 of 295 Category FY 2023 Actual FY 2024 Actual FY 2025 Actual FY 2026 Adopted Budget FY 2027 Proposed Budget FY 2026 Adopted Budget vs. FY 2027 Proposed Budget (% Change) Dues & Memberships $10 $10 $10 $10 $10 0.0% MPC Debt Serv $10 $10 $10 $10 $10 0.0% Maintenance & Repair $18,307 $30,925 $40,434 $36,250 $36,684 1.2% Public Art Fund $11,742 $19,450 $20,215 $26,000 $26,000 0.0% Court Enhancement Fund $89 $5,000 $13,189 --0.0% Cottonwoods Maint Dist $6,475 $6,475 $7,030 $10,250 $10,684 4.2% Contractual Services $12,978 $13,298 $15,945 $104,669 $55,384 -47.1% Public Art Fund $12,014 $12,014 $12,014 $14,214 $16,777 18.0% Court Enhancement Fund --$2,095 $25,000 $25,000 0.0% Eagle Mtn CFD Debt Serv $88 $198 $443 $200 -- Cottonwoods Maint Dist $876 $1,086 $1,394 $1,305 $1,607 23.1% Fire/EMS Dev Fee ---$1,964 $4,000 103.7% Streets Dev Fee ---$31,146 $4,000 -87.2% Park/Rec Dev Fee ---$30,840 $4,000 -87.0% Supplies --$1,004 $50 $50 0.0% Public Art Fund --$965 --0.0% Cottonwoods Maint Dist --$39 $50 $50 0.0% Equipment/Improvemen $44,776 $45,000 $69,236 $47,500 $57,500 21.1% Court Enhancement Fund $15,840 -$34,803 $2,500 $12,500 400.0% Technology Repl Fund $28,936 $45,000 $34,433 $45,000 $45,000 0.0% Transfers Out $275,000 ----0.0% Park/Rec Dev Fee $275,000 ----0.0% Contingency ---$84,000 $84,000 0.0% Court Enhancement Fund ---$50,000 $50,000 0.0% Cottonwoods Maint Dist ---$4,000 $4,000 0.0% Technology Repl Fund ---$5,000 $5,000 0.0% Vehicle/Equip Repl Fund ---$25,000 $25,000 0.0% Capital Expenditures $39,602 $93,222 $10,374 $454,100 $555,000 22.2% Technology Repl Fund --$10,374 --0.0% Vehicle/Equip Repl Fund $39,602 $93,222 -$454,100 $555,000 22.2% Debt Service ---$850 $850 0.0% GO Bond Debt Serv ---$350 $350 0.0% MPC Debt Serv ---$500 $500 0.0% Total Expenditures $390,673 $182,455 $137,002 $727,429 $789,478 8.5% Fund Balance The Fund Balance chart below shows the actual fund balances across all 11 NonMajor Funds for FY2023 through FY2025, and the projected ending fund balances for FY2026. Expenditures by Object Table of ContentsAll NonMajor Funds FY27 Proposed Budget | Fountain Hills Page 81Meeting Packet Page 84 of 295 Fund Balance Historical and Projected Assigned Restricted Fund Balance FY 2023 FY 2024 FY 2025 FY 2026 FY 2025 vs. FY 2026 (% Change) Assigned $2,274,357 $2,679,451 $3,209,743 $2,988,000 -6.9% Restricted $2,746,987 $2,845,964 $3,010,143 $1,915,500 -36.4% Total Fund Balance $5,021,344 $5,525,415 $6,219,886 $4,903,500 -21.2% $5M$5M$5M $6M$6M $6M $6M$6M $6M $5M$5M$5M FY2023 FY2024 FY2025 FY2026 0 $3M $5M $8M Financial Summary Table of ContentsAll NonMajor Funds FY27 Proposed Budget | Fountain Hills Page 82Meeting Packet Page 85 of 295 Funding Sources Overview The following sections summarize the Town's primary revenue sources and projected FY2027 revenues. The Town balances General Fund budgeted expenditures with projected revenues to adopt a balanced main operating fund budget each fiscal year. The Town also budgets other funds in accordance with relevant statutes limiting expenditures to budgeted amounts which are required to be below the annual expenditure limitation set by the Arizona Economic Estimates Commission (EEC). The Town's primary revenue source is local sales taxes, which bring in more than half of the total Town's revenues. State Shared revenues make up about another 30% of the Town's revenues. In total, local sales taxes and State Shared revenues bring in about 80% of the Town's total revenues, which allows the Town to provide critical and required services and programs to our residents. Each of the following sections details critical information about these revenue sources. Table of ContentsFunding Sources Overview FY27 Proposed Budget | Fountain Hills Page 83Meeting Packet Page 86 of 295 Transaction Privilege Tax (All Funds) Summary The Town tracks and analyzes Transaction Privilege Tax (TPT) local sales tax revenues compared to projections throughout each fiscal year. The Finance Division tracks these data points to create annual trend analysis to project these revenues and modify projections as needed each fiscal year. The Town Finance Division also reviews State Joint Legislative Budget Committee updates each month to identify current and future trends to consider modifying projections. The Town collects 2.9% of local sales tax across most categories and those revenues are split up and deposited into the following funds based on Council's adoption of tax rates and ordinances dictating the allocation of these revenues: General Fund - 2.6%  Streets Fund - 0.2% Economic Development Fund - 0.08% Downtown Strategy Fund - 0.02% Capital Projects Fund - 50% of construction local sales tax revenues Some local sales tax categories differ based on various reasons. For example, for commercial leasing, the Town established a 1.6% base rate and an additional rate of 1.3% which combine to make up the 2.9% local sales tax rate. The Town has also established an additional bed tax of 4.0% for Short-Term Rentals and hotels. The additional bed tax is added on top of the 2.9% base rate for a combined rate of 6.9% of local sales tax revenues. These local sales tax rates are combined with State and County rates based on the taxable activity to arrive at the total combined sales tax applied to each transaction. The Arizona Depar tment of Revenue publishes the Town's local sales tax rates at: Fountain Hills | Arizona Department of Revenue This section also includes secondary proper ty taxes accounted for in the Cottonwoods Maintenance District Fund. Table of ContentsTransaction Privilege Taxes (All Funds) Summary FY27 Proposed Budget | Fountain Hills Page 84Meeting Packet Page 87 of 295 2.9% Local Sales Tax Revenue Splits Below is an illustration of how the Finance Division allocates local sales tax revenues received by the Town throughout each fiscal year: Table of ContentsTransaction Privilege Taxes (All Funds) Summary FY27 Proposed Budget | Fountain Hills Page 85Meeting Packet Page 88 of 295 Revenue Summary These char ts show the actual total tax revenues collected by the Town in FY2023 through FY2025, and projected total tax revenues in FY2026 and FY2027. Most of the tax revenues are comprised of local sales taxes, with a smaller portion attributed to the Town's franchise tax revenues. This breakdown of revenues is shown in the detailed tables below. Historical and Projected Revenues Across Sources Revenues by Object The following charts show FY2023 through FY2025 actual revenues by Object compared with the FY2026 adopted budget and FY2027 proposed budget projected revenues by Object. Historical and Projected Revenues by Object Property Tax-Cy Franchise Fees Sales Tax-Local Revenue Actual Revenue Surplus Revenue Budgeted FY2023 FY2024 FY2025 FY2026 FY2027 0 $5M $10M $15M $20M $25M $21M$21M$21M $21M$21M$21M $21M$21M$21M $18M$18M $18M $19M$19M $19M FY2023 FY2024 FY2025 FY2026 FY2027 0 $10M $20M $30M Table of ContentsTransaction Privilege Taxes (All Funds) Summary FY27 Proposed Budget | Fountain Hills Page 86Meeting Packet Page 89 of 295 FY27 Revenues by Object Sales Tax-Local $18,548,849 98.21% Franchise Fees $325,000 1.72% Property Tax-Cy $12,342 0.07% Category FY 2023 Actual FY 2024 Actual FY 2025 Actual FY 2026 Adopted Budget FY 2027 Proposed Budget FY 2026 Adopted Budget vs. FY 2027 Proposed Budget (% Change) Property Tax-Cy $7,908 $9,841 $10,509 $11,606 $12,342 6.3% GO Bond Debt Serv -$870 $26 ---0.0% Cottonwoods Maint Dist $8,778 $9,815 $10,509 $11,606 $12,342 6.3% Sales Tax-Local $20,586,294 $20,559,929 $20,191,270 $18,013,723 $18,548,849 3.0% General Fund $16,732,052 $16,834,517 $16,616,599 $14,962,027 $15,268,851 2.1% Streets Fund $1,419,744 $1,417,926 $1,392,501 $1,242,326 $1,279,231 3.0% Downtown Strategy Fund $141,974 $141,793 $139,250 $124,233 $127,923 3.0% Economic Development Fund $567,898 $567,170 $557,001 $496,930 $511,692 3.0% Capital Projects Fund $1,724,626 $1,598,522 $1,485,919 $1,188,207 $1,361,152 14.6% Franchise Fees $290,880 $351,118 $334,101 $350,000 $325,000 -7.1% General Fund $290,880 $351,118 $334,101 $350,000 $325,000 -7.1% Total Revenues $20,885,081 $20,920,887 $20,535,880 $18,375,329 $18,886,191 2.8% 18.9M Revenues by Object Table of ContentsTransaction Privilege Taxes (All Funds) Summary FY27 Proposed Budget | Fountain Hills Page 87Meeting Packet Page 90 of 295 Revenues by Fund The following charts show FY2023 through FY2025 actual revenues by Fund compared with the FY2026 adopted budget and FY2027 proposed budget projected revenues by Fund. Historical and Projected Revenues by Fund GO Bond Debt Serv Cottonwoods Maint Dist Downtown Strategy Fund Economic Development Fund Streets Fund Capital Projects Fund General Fund FY27 Revenues by Fund General Fund $15,593,851 82.57% Capital Projects Fund $1,361,152 7.21% Streets Fund $1,279,231 6.77% Economic Development Fund $511,692 2.71% Downtown Strategy Fund $127,923 0.68% Cottonwoods Maint Dist $12,342 0.07% Category FY 2023 Actual FY 2024 Actual FY 2025 Actual FY 2026 Adopted Budget FY 2027 Proposed Budget FY 2026 Adopted Budget vs. FY 2027 Proposed Budget (% Change) General Fund $17,022,932 $17,185,635 $16,950,700 $15,312,027 $15,593,851 1.8% Sales Tax-Local $16,732,052 $16,834,517 $16,616,599 $14,962,027 $15,268,851 2.1% Franchise Fees $290,880 $351,118 $334,101 $350,000 $325,000 -7.1% $21M$21M$21M $21M$21M$21M $21M$21M$21M $18M$18M $18M $19M$19M $19M FY2023 FY2024 FY2025 FY2026 FY2027 -$10M 0 $10M $20M $30M 18.9M Revenues by Fund Table of ContentsTransaction Privilege Taxes (All Funds) Summary FY27 Proposed Budget | Fountain Hills Page 88Meeting Packet Page 91 of 295 Category FY 2023 Actual FY 2024 Actual FY 2025 Actual FY 2026 Adopted Budget FY 2027 Proposed Budget FY 2026 Adopted Budget vs. FY 2027 Proposed Budget (% Change) Streets Fund $1,419,744 $1,417,926 $1,392,501 $1,242,326 $1,279,231 3.0% Sales Tax-Local $1,419,744 $1,417,926 $1,392,501 $1,242,326 $1,279,231 3.0% Downtown Strategy Fund $141,974 $141,793 $139,250 $124,233 $127,923 3.0% Sales Tax-Local $141,974 $141,793 $139,250 $124,233 $127,923 3.0% Economic Development Fund $567,898 $567,170 $557,001 $496,930 $511,692 3.0% Sales Tax-Local $567,898 $567,170 $557,001 $496,930 $511,692 3.0% GO Bond Debt Serv -$870 $26 ---0.0% Property Tax-Cy -$870 $26 ---0.0% Cottonwoods Maint Dist $8,778 $9,815 $10,509 $11,606 $12,342 6.3% Property Tax-Cy $8,778 $9,815 $10,509 $11,606 $12,342 6.3% Capital Projects Fund $1,724,626 $1,598,522 $1,485,919 $1,188,207 $1,361,152 14.6% Sales Tax-Local $1,724,626 $1,598,522 $1,485,919 $1,188,207 $1,361,152 14.6% Total Revenues $20,885,081 $20,920,887 $20,535,880 $18,375,329 $18,886,191 2.8% Table of ContentsTransaction Privilege Taxes (All Funds) Summary FY27 Proposed Budget | Fountain Hills Page 89Meeting Packet Page 92 of 295 State Shared Revenues - General Fund The Town of Fountain Hills deposits State Shared Revenues into its General Fund and Streets Fund.  This page details the General Fund's projected State Shared Sales Taxes and Income Taxes, as well as revenues received from the State of Arizona for Fire Insurance Premium Taxes to support retirement benefits for the Fire Department.  Revenue Summary The Town prepares initial State Shared revenue projections and modifies them using updated revenue projections provided by the Arizona League of Cities and Towns. For FY2027, the Town is projecting about $3.6 million of State Shared Sales Taxes, $5.0 million of State Shared Income Taxes (Urban Revenue Sharing program), and about $330,000 for Fire Insurance Premium Tax revenues to support Fire Department retirement benefits. State Shared Revenue is projected to bring in about $8.9 million into the General Fund for FY2027, which is an increase of about $500K from the prior year. This projected increase is due to State Shared Income Taxes beginning to increase again after the full State implementation of a flat income tax, and because the Town will begin receiving higher levels of Fire Insurance Premium Tax revenues now that the Town employs a fully in-house Fire Department. Historical and Projected Revenues Across Sources Revenue Actual Revenue Surplus Revenue Budgeted FY2023 FY2024 FY2025 FY2026 FY2027 0 $3M $5M $8M $10M $13M Table of ContentsState Shared Revenues - General Fund FY27 Proposed Budget | Fountain Hills Page 90Meeting Packet Page 93 of 295 Revenues by Object The following charts show FY2023 through FY2025 actual General Fund State Shared Revenues by Object compared with the FY2026 adopted budget and FY2027 proposed budget projected General Fund State Shared Revenues by Object. Historical and Projected Revenues by Object Fire Insurance Prem Tax Vehicle License Tax Sales Tax-State Income Tax-State FY27 Revenues by Object Income Tax-State $4,987,436 56.17% Sales Tax-State $3,562,041 40.12% Fire Insurance Prem Tax $330,000 3.72% Category FY 2023 Actual FY 2024 Actual FY 2025 Actual FY 2026 Adopted Budget FY 2027 Proposed Budget FY 2026 Adopted Budget vs. FY 2027 Proposed Budget (% Change) Sales Tax-State $3,520,947 $3,586,141 $3,622,681 $3,639,515 $3,562,041 -2.1% Income Tax-State $4,518,501 $6,302,824 $5,022,719 $4,698,139 $4,987,436 6.2% Vehicle License Tax $354,673 $372,791 ---0.0% Fire Insurance Prem Tax $62,406 $87,812 $95,892 $75,000 $330,000 340.0% Total Revenues $8,456,527 $10,349,568 $8,741,292 $8,412,654 $8,879,477 5.5% $8M$8M$8M $10M$10M$10M $9M$9M $9M $8M$8M$8M $9M$9M $9M FY2023 FY2024 FY2025 FY2026 FY2027 0 $5M $10M $15M 8.88M Revenues by Object Table of ContentsState Shared Revenues - General Fund FY27 Proposed Budget | Fountain Hills Page 91Meeting Packet Page 94 of 295 The Town Council directed all the vehicle license tax revenues into the Streets Fund during the FY2025 budget work sessions — therefore, all of those revenues have been deposited into the Streets Fund since that time and is reflected in these charts. Further, the Town projects to begin receiving higher levels of Fire Insurance Premium Tax Revenues into the General Fund beginning in FY2027, due to the Town Fire Department becoming fully in-house rather than contracted.  Under Arizona Law, the Town of Fountain Hills will now be entitled to its full share of these revenues, rather than a reduced share. Table of ContentsState Shared Revenues - General Fund FY27 Proposed Budget | Fountain Hills Page 92Meeting Packet Page 95 of 295 State Shared Revenues - Streets Fund The Town of Fountain Hills deposits State Shared Revenues into its General Fund and Streets Fund.  This page details the Streets Fund's projected Highway User Revenue Taxes (gas tax) and Vehicle License Taxes (VLT), which are collected by the State and distributed to each municipality based on its resident population as a proportion of all incorporated municipalities in the State of Arizona. Revenue Summary The Town prepares initial State Shared revenue projections and modifies them using updated revenue projections provided by the Arizona League of Cities and Towns. For FY2027, the Town is projecting about $1.8 million of HURF taxes and $1.3 million of Vehicle License Taxes (VLT). State Shared Revenue is projected to bring in about $3.1 million into the Streets Fund for FY2027, slightly less than the prior year.  Historical Revenues Across Sources Revenue Actual Revenue Surplus Revenue Budgeted FY2023 FY2024 FY2025 FY2026 FY2027 0 $1M $2M $3M $4M Table of ContentsState Shared Revenues - Streets Fund FY27 Proposed Budget | Fountain Hills Page 93Meeting Packet Page 96 of 295 Revenues by Object The following charts show FY2023 through FY2025 actual Streets Fund State Shared Revenues by Object compared with the FY2026 adopted budget and FY2027 proposed budget projected Streets Fund State Shared Revenues by Object. Historical and Projected Revenues by Object Vehicle License Tax Highway Users Tax FY27 Revenues by Object Highway Users Tax $1,810,740 58.58% Vehicle License Tax $1,280,205 41.42% Category FY 2023 Actual FY 2024 Actual FY 2025 Actual FY 2026 Adopted Budget FY 2027 Proposed Budget FY 2026 Adopted Budget vs. FY 2027 Proposed Budget (% Change) Vehicle License Tax $827,570 $869,845 $1,300,912 $1,277,830 $1,280,205 0.2% Highway Users Tax $1,779,359 $1,850,986 $1,889,802 $1,890,627 $1,810,740 -4.2% Total Revenues $2,606,929 $2,720,831 $3,190,714 $3,168,457 $3,090,945 -2.4% $3M$3M$3M $3M$3M$3M $3M$3M$3M $3M$3M$3M $3M$3M$3M FY2023 FY2024 FY2025 FY2026 FY2027 0 $1M $2M $3M $4M 3.09M Revenues by Object Table of ContentsState Shared Revenues - Streets Fund FY27 Proposed Budget | Fountain Hills Page 94Meeting Packet Page 97 of 295 Other Revenues - Licenses and Permits The Town collects Licenses and Permits revenue through various methods. The following pages detail these revenue collections by fund type. License and Permits revenue includes finance licenses such as business licenses and Short- Term Rental (STR) permits. It also includes building fees and permits in the General Fund, and development impact fees for streets, fire depar tment and parks purposes, which are recorded in those 3 NonMajor Funds (Development Impact Fee Funds). Revenue Summary The following charts include actual Licenses and Permits revenues for FY2023 through FY2025, and projected FY2026 and FY2027 Licenses and Permits revenues across all funds. Historical and Projected Revenues Across Sources For the Other Revenues - Licenses and Permits category, the budgeted revenue for FY2026 is $1.4 million. This amount serves as the baseline for the subsequent year’s comparison. In FY2027, the budgeted revenue increased to $1.8 million, representing a 33.54% increase from FY2026. This significant rise is due to the Town Council approving a new development impact fee schedule during FY2026, that became effective on April 6, 2026. Revenue Actual Revenue Surplus Revenue Budgeted FY2023 FY2024 FY2025 FY2026 FY2027 0 $500K $1,000K $1,500K $2,000K Table of ContentsOther Revenues - Licenses and Permits FY27 Proposed Budget | Fountain Hills Page 95Meeting Packet Page 98 of 295 Revenues by Object The following charts show FY2023 through FY2025 actual Licenses and Permits revenues by Object compared with the FY2026 adopted budget and FY2027 proposed budget projected Licenses and Permits Revenues by Object. Historical and Projected Revenues by Object Alcohol Permits Environmental Fee Third-Party Revenues Liquor License Fees Landscape Permits Sign Permits Engineering Fees Variances Planning & Zoning Fees Special Event Permit Animal License Plan Review Inspection Fees Subdivision Fees Business License Encroachment Permits Development Fees Building Permit $1M$1M $1M $2M$2M$2M $1M$1M $1M $1M$1M $1M $2M$2M$2M FY2023 FY2024 FY2025 FY2026 FY2027 0 $500K $1,000K $1,500K $2,000K Table of ContentsOther Revenues - Licenses and Permits FY27 Proposed Budget | Fountain Hills Page 96Meeting Packet Page 99 of 295 FY27 Revenues by Object Development Fees $992,864 53.73% Building Permit $450,000 24.35% Business License $110,000 5.95% Plan Review $50,000 2.71% Encroachment Permits $50,000 2.71% Inspection Fees $45,000 2.44% Subdivision Fees $40,000 2.16% Animal License $35,000 1.89% Special Event Permit $30,000 1.62% Planning & Zoning Fees $20,060 1.09% Engineering Fees $10,000 0.54% Variances $5,000 0.27% Landscape Permits $3,780 0.20% Sign Permits $3,350 0.18% Liquor License Fees $2,000 0.11% Alcohol Permits $980 0.05% Category FY 2023 Actual FY 2024 Actual FY 2025 Actual FY 2026 Adopted Budget FY 2027 Proposed Budget FY 2026 Adopted Budget vs. FY 2027 Proposed Budget (% Change) Liquor License Fees $3,800 $3,425 $2,400 $2,000 $2,000 0.0% General Fund $3,800 $3,425 $2,400 $2,000 $2,000 0.0% Business License $114,194 $87,093 $89,292 $114,094 $110,000 -3.6% General Fund $114,194 $87,093 $89,292 $114,094 $110,000 -3.6% Animal License $16,000 $31,900 $38,250 $28,523 $35,000 22.7% General Fund $16,000 $31,900 $38,250 $28,523 $35,000 22.7% Building Permit $581,528 $526,145 $461,330 $450,000 $450,000 0.0% General Fund $581,528 $526,145 $461,330 $450,000 $450,000 0.0% Development Fees $380,962 $323,749 $236,206 $507,465 $992,864 95.7% Fire/EMS Dev Fee $16,027 $9,738 $8,114 $17,228 $164,445 854.5% Streets Dev Fee $190,125 $181,726 $113,689 $266,141 $380,179 42.8% Park/Rec Dev Fee $174,811 $132,285 $114,403 $224,096 $448,240 100.0% Sign Permits $5,515 $4,430 $4,050 $3,350 $3,350 0.0% General Fund $5,515 $4,430 $4,050 $3,350 $3,350 0.0% Planning & Zoning Fees $21,643 $17,951 $12,933 $20,060 $20,060 0.0% 1.85M Revenues by Object Table of ContentsOther Revenues - Licenses and Permits FY27 Proposed Budget | Fountain Hills Page 97Meeting Packet Page 100 of 295 Category FY 2023 Actual FY 2024 Actual FY 2025 Actual FY 2026 Adopted Budget FY 2027 Proposed Budget FY 2026 Adopted Budget vs. FY 2027 Proposed Budget (% Change) General Fund $21,643 $17,951 $12,933 $20,060 $20,060 0.0% Landscape Permits $3,634 $6,583 $2,800 $3,780 $3,780 0.0% General Fund $3,634 $6,583 $2,800 $3,780 $3,780 0.0% Encroachment Permits $153,687 $507,338 $39,681 $100,000 $50,000 -50.0% General Fund $153,687 $507,338 $39,681 $100,000 $50,000 -50.0% Variances $14,610 $8,690 $9,060 $5,000 $5,000 0.0% General Fund $14,610 $8,690 $9,060 $5,000 $5,000 0.0% Subdivision Fees $79,240 $76,600 $50,137 $40,000 $40,000 0.0% General Fund $79,240 $76,600 $50,137 $40,000 $40,000 0.0% Special Event Permit $14,825 $18,580 $28,895 $18,100 $30,000 65.7% General Fund $14,825 $18,580 $28,895 $18,100 $30,000 65.7% Engineering Fees $4,000 $10,890 $8,730 $5,550 $10,000 80.2% General Fund $4,000 $10,890 $8,730 $5,550 $10,000 80.2% Plan Review $26,969 $41,508 $44,327 $50,000 $50,000 0.0% General Fund $26,969 $41,508 $44,327 $50,000 $50,000 0.0% Inspection Fees $52,970 $46,867 $43,311 $35,000 $45,000 28.6% General Fund $52,970 $46,867 $43,311 $35,000 $45,000 28.6% Alcohol Permits $1,260 $980 $1,080 $980 $980 0.0% General Fund $1,260 $980 $1,080 $980 $980 0.0% Environmental Fee $2,556 $1,692 $1,872 --0.0% Environmental Fund $2,556 $1,692 $1,872 --0.0% Third-Party Revenues $9,493 ----0.0% General Fund $9,493 ----0.0% Total Revenues $1,486,885 $1,714,420 $1,074,353 $1,383,902 $1,848,034 33.5% Revenues by Fund The following charts show FY2023 through FY2025 actual Licenses and Permits Revenue compared with the FY2026 adopted budget and FY2027 proposed budget projected Licenses and Permits Revenues by Fund. Table of ContentsOther Revenues - Licenses and Permits FY27 Proposed Budget | Fountain Hills Page 98Meeting Packet Page 101 of 295 Historical and Projected Revenues by Fund Environmental Fund Fire/EMS Dev Fee Park/Rec Dev Fee Streets Dev Fee General Fund FY27 Revenues by Fund General Fund $855,170 46.27% Park/Rec Dev Fee $448,240 24.25% Streets Dev Fee $380,179 20.57% Fire/EMS Dev Fee $164,445 8.90% Category FY 2023 Actual FY 2024 Actual FY 2025 Actual FY 2026 Adopted Budget FY 2027 Proposed Budget FY 2026 Adopted Budget vs. FY 2027 Proposed Budget (% Change) General Fund $1,103,367 $1,388,979 $836,276 $876,437 $855,170 -2.4% Environmental Fund $2,556 $1,692 $1,872 --0.0% Fire/EMS Dev Fee $16,027 $9,738 $8,114 $17,228 $164,445 854.5% Streets Dev Fee $190,125 $181,726 $113,689 $266,141 $380,179 42.8% Park/Rec Dev Fee $174,811 $132,285 $114,403 $224,096 $448,240 100.0% Total Revenues $1,486,885 $1,714,420 $1,074,353 $1,383,902 $1,848,034 33.5% $1M$1M $1M $2M$2M$2M $1M$1M $1M $1M$1M $1M $2M$2M$2M FY2023 FY2024 FY2025 FY2026 FY2027 0 $500K $1,000K $1,500K $2,000K 1.85M Revenues by Fund Table of ContentsOther Revenues - Licenses and Permits FY27 Proposed Budget | Fountain Hills Page 99Meeting Packet Page 102 of 295 Other Revenues - Leases and Rents The Town collects Leases and Rents revenues from the leasing of parks amenity spaces, Community Center rentals, a Fire Department lease with an ambulance company, as well as cell tower land leases. All Leases and Rent revenues are deposited into the General Fund. Revenue Summary The following charts include actual Leases and Rents revenue for FY2023 through FY2025, and projected FY2026 and FY2027 Leases and Rents revenue across all funds (all leases and rents are recorded in the General Fund). Historical and Projected Revenues Across Sources Revenue Actual Revenue Surplus Revenue Budgeted FY2023 FY2024 FY2025 FY2026 FY2027 0 $100K $200K $300K $400K $500K Table of ContentsOther Revenues - Leases and Rents FY27 Proposed Budget | Fountain Hills Page 100Meeting Packet Page 103 of 295 Revenues by Object The following charts show FY2023 through FY2025 actual Leases and Rents revenue by Object compared with the FY2026 adopted budget and FY2027 proposed budget projected Leases and Rents revenues by Object. Historical and Projected Revenues by Object Non-Taxable Rental Cell Tower Lease Rental Fees FY27 Revenues by Object Rental Fees $230,765 59.56% Cell Tower Lease $149,290 38.53% Non-Taxable Rental $7,400 1.91% Category FY 2023 Actual FY 2024 Actual FY 2025 Actual FY 2026 Adopted Budget FY 2027 Proposed Budget FY 2026 Adopted Budget vs. FY 2027 Proposed Budget (% Change) Rental Fees $220,600 $225,290 $222,669 $230,847 $230,765 0.0% Non-Taxable Rental $1,200 $10 $5,010 $7,000 $7,400 5.7% Cell Tower Lease $227,097 $140,492 $140,492 $142,067 $149,290 5.1% Total Revenues $448,897 $365,792 $368,170 $379,914 $387,455 2.0% $449K$449K $449K $366K$366K $366K $368K$368K $368K $380K$380K $380K $387K$387K $387K FY2023 FY2024 FY2025 FY2026 FY2027 0 $200K $400K $600K 387K Revenues by Object Table of ContentsOther Revenues - Leases and Rents FY27 Proposed Budget | Fountain Hills Page 101Meeting Packet Page 104 of 295 Other Revenues - Charges for Services The Town collects charges for services revenues primarily from its Community Service Programs for residents that are deposited into the General Fund. These programs include recreation, home-delivered meals, community center membership, and electric vehicle charging. The Town also projects charges for services revenues in the Public Art Fund based on an art development in-lieu fee, and miscellaneous charges for services in the Streets Fund. Revenue Summary The following charts include actual Charges for Ser vices revenues for FY2023 through FY2025, and projected FY2026 and FY2027 Charges for Services revenues across all funds. Historical and Projected Revenues Across Sources Revenue Actual Revenue Budgeted FY2023 FY2024 FY2025 FY2026 FY2027 0 $100K $200K $300K $400K $500K Table of ContentsOther Revenues - Charges for Services FY27 Proposed Budget | Fountain Hills Page 102Meeting Packet Page 105 of 295 Revenues by Object The following charts show FY2023 through FY2025 actual Charges for Services revenues by Object compared with the FY2026 adopted budget and FY2027 proposed budget projected Charges for Ser vices revenues by Object. Historical and Projected Revenues by Object Adopt-A-Street Fee In-Lieu Fees Program Fees FY27 Revenues by Object Program Fees $275,000 71.43% In-Lieu Fees $110,000 28.57% Category FY 2023 Actual FY 2024 Actual FY 2025 Actual FY 2026 Adopted Budget FY 2027 Proposed Budget FY 2026 Adopted Budget vs. FY 2027 Proposed Budget (% Change) Program Fees $196,580 $242,181 $278,368 $260,000 $275,000 5.8% General Fund $196,580 $242,181 $278,368 $260,000 $275,000 5.8% In-Lieu Fees $19,852 $5,000 $37,559 $200,000 $110,000 -45.0% Streets Fund $3,659 --$100,000 $10,000 -90.0% Public Art Fund $16,193 $5,000 $37,559 $100,000 $100,000 0.0% Adopt-A-Street Fee $480 $120 $60 --0.0% Streets Fund $480 $120 $60 --0.0% $217K$217K $217K $247K$247K $247K $316K$316K $316K $460K$460K $460K $385K$385K $385K FY2023 FY2024 FY2025 FY2026 FY2027 0 $200K $400K $600K 385K Revenues by Object Table of ContentsOther Revenues - Charges for Services FY27 Proposed Budget | Fountain Hills Page 103Meeting Packet Page 106 of 295 Category FY 2023 Actual FY 2024 Actual FY 2025 Actual FY 2026 Adopted Budget FY 2027 Proposed Budget FY 2026 Adopted Budget vs. FY 2027 Proposed Budget (% Change) Total Revenues $216,912 $247,301 $315,987 $460,000 $385,000 -16.3% Most of the Town's Charges for Services revenues pertain to recreational programs and activities at the Community Center, which are deposited into the General Fund. The Town also collects fees from new development for public art maintenance for Town-owned art, and those revenues are deposited into a NonMajor Fund, the Public Art Fund.  Other Charges for Services revenues are deposited into the Streets Fund. Table of ContentsOther Revenues - Charges for Services FY27 Proposed Budget | Fountain Hills Page 104Meeting Packet Page 107 of 295 Other Revenues - Fines and Forfeitures The Town's Municipal Court collects various fines and forfeitures each day, which the Town mostly deposits into the General Fund. Additionally, the Municipal Court has established Council-adopted Court Enhancement Fees to support Court programs, which are fully deposited into the Court Enhancement Fund, which is one of the Town's NonMajor Funds. Revenue Summary The following charts include actual Fines and Forfeitures revenues for FY2023 through FY2025, and projected FY2026 and FY2027 Fines and Forfeitures revenues across all funds. Historical and Projected Revenues Across Sources Revenue Actual Revenue Surplus Revenue Budgeted FY2023 FY2024 FY2025 FY2026 FY2027 0 $100K $200K $300K $400K Table of ContentsOther Revenues - Fines and Forfeitures FY27 Proposed Budget | Fountain Hills Page 105Meeting Packet Page 108 of 295 Revenues by Object The following charts include actual Fines and Forfeitures revenues by Object for FY2023 through FY2025, and projected FY2026 and FY2027 Fines and Forfeitures revenues by Object across all funds. Historical and Projected Revenues by Object Jcef Revenue Ccef Revenue Court Fines/Fees In FY2027, the total revenue for Other Revenues - Fines and Forfeitures is budgeted at $352,000, representing a 44 .86% increase from the FY2026 total of $243,000. The largest category, Cour t Fines/Fees, is projected to increase by $90,000 or 42.86%, reaching $300,000 and comprising 85.23% of the total revenue. This marks a significant rise compared to the previous year's $210,000 because the Town Council approved a new Municipal Court fee schedule towards the end of FY2025, which is showing substantially higher revenues in FY2026. Court Enhancement Fund (CCEF) Revenue is the second-largest category, expected to grow by $19,000 or 63.33% to $49,000, making up 13.92% of the total. The CCEF fees were also increased in the new Town Council-approved fee schedule, resulting in substantially higher revenues that may only be used to support Municipal Court programs (restricted by Arizona law). FY27 Revenues by Object Court Fines/Fees $300,000 85.23% Ccef Revenue $49,000 13.92% Jcef Revenue $3,000 0.85% $240K$240K $240K $255K$255K $255K $245K$245K $245K $243K$243K $243K $352K$352K $352K FY2023 FY2024 FY2025 FY2026 FY2027 0 $100K $200K $300K $400K 352K Table of ContentsOther Revenues - Fines and Forfeitures FY27 Proposed Budget | Fountain Hills Page 106Meeting Packet Page 109 of 295 Category FY 2023 Actual FY 2024 Actual FY 2025 Actual FY 2026 Adopted Budget FY 2027 Proposed Budget FY 2026 Adopted Budget vs. FY 2027 Proposed Budget (% Change) Court Fines/Fees $211,773 $227,192 $214,389 $210,000 $300,000 42.9% General Fund $211,773 $227,192 $214,389 $210,000 $300,000 42.9% Ccef Revenue $25,460 $25,472 $28,303 $30,000 $49,000 63.3% Court Enhancement Fund $25,460 $25,472 $28,303 $30,000 $49,000 63.3% Jcef Revenue $3,075 $2,625 $1,932 $3,000 $3,000 0.0% Court Enhancement Fund $3,075 $2,625 $1,932 $3,000 $3,000 0.0% Total Revenues $240,308 $255,289 $244,624 $243,000 $352,000 44.9% Revenues by Object Table of ContentsOther Revenues - Fines and Forfeitures FY27 Proposed Budget | Fountain Hills Page 107Meeting Packet Page 110 of 295 Investment Earnings The Town manages a long-term investment portfolio and invests most of its other unspent fund balances in the State Treasurer Local Government Investment Pool (LGIP) 7, which invests in short-term United States Treasury investments.  These investment earnings are recorded across funds based on cash on hand within each fund. Revenue Summary The Town has historically used very conser vative projections for investment earnings revenue. Beginning in FY2026, Town projections are conservatively based on a 2% expected return on previous year-end fund balances.  The following charts include actual Investment Earnings revenue for FY2023 through FY2025, and projected FY2026 and FY2027 Investment Earnings revenue across all funds. Historical and Projected Revenues Across Sources Revenue Actual Revenue Surplus Revenue Budgeted FY2023 FY2024 FY2025 FY2026 FY2027 0 $500K $1,000K $1,500K $2,000K $2,500K $3,000K Table of ContentsInvestment Earnings FY27 Proposed Budget | Fountain Hills Page 108Meeting Packet Page 111 of 295 Revenues by Object The following charts include actual Investment Earnings revenue by Object for FY2023 through FY2025, and projected FY2026 and FY2027 Investment Earnings revenue by Object across all funds. Historical and Projected Revenues by Object Interest Income FY27 Revenues by Object Interest Income $842,030 100.00% Category FY 2023 Actual FY 2024 Actual FY 2025 Actual FY 2026 Adopted Budget FY 2027 Proposed Budget FY 2026 Adopted Budget vs. FY 2027 Proposed Budget (% Change) Interest Income $1,100,314 $2,345,425 $2,431,871 $970,018 $842,030 -13.2% General Fund $315,008 $728,807 $616,693 $348,507 $294,941 -15.4% Streets Fund $197,804 $558,547 $595,071 $191,193 $105,205 -45.0% Downtown Strategy Fund $15,480 $33,698 $33,743 $13,830 $14,168 2.4% Economic Development Fund $16,188 $38,131 $32,749 $10,766 $13,350 24.0% Tourism Fund $8,637 $6,623 $12,916 $3,000 $3,126 4.2% Special Revenue Fund $95,043 $15,303 $5,180 --0.0% Public Art Fund $2,506 $2,904 $2,072 $820 $1,289 57.2% $1M$1M$1M $2M$2M$2M $2M$2M$2M $970K$970K $970K $842K$842K $842K FY2023 FY2024 FY2025 FY2026 FY2027 0 $1M $2M $3M 842K Revenues by Source Table of ContentsInvestment Earnings FY27 Proposed Budget | Fountain Hills Page 109Meeting Packet Page 112 of 295 Category FY 2023 Actual FY 2024 Actual FY 2025 Actual FY 2026 Adopted Budget FY 2027 Proposed Budget FY 2026 Adopted Budget vs. FY 2027 Proposed Budget (% Change) Court Enhancement Fund $162 $159 $12,429 $8,789 $8,641 -1.7% Environmental Fund $19,386 $30,493 $9,373 --0.0% GO Bond Debt Serv $5,543 $8,509 $1,936 $500 $566 13.2% Eagle Mtn CFD Debt Serv $710 $1,062 $190 --0.0% MPC Debt Serv $402 $628 $533 $200 $251 25.5% Cottonwoods Maint Dist $555 $914 $850 $400 $428 7.0% Capital Projects Fund $132,253 $407,771 $498,270 $170,000 $175,666 3.3% Facilities Reserve Fund $136,114 $264,030 $360,779 $140,000 $144,302 3.1% Fire/EMS Dev Fee $14,650 $22,018 $9,890 $4,102 $4,173 1.7% Streets Dev Fee $16,161 $32,863 $38,467 $15,227 -- Park/Rec Dev Fee $48,188 $66,809 $67,096 $13,632 $26,872 97.1% Technology Repl Fund $5,367 $8,653 $9,512 --0.0% Vehicle/Equip Repl Fund $70,157 $117,504 $124,121 $49,052 $49,052 0.0% Total Revenues $1,100,314 $2,345,425 $2,431,871 $970,018 $842,030 -13.2% Revenues by Fund The following charts include actual Investment Earnings revenue by Fund for FY2023 through FY2025, and projected FY2026 and FY2027 Investment Earnings revenue by Fund. Historical and Projected Revenues by Fund Eagle Mtn CFD Debt Serv MPC Debt Serv Cottonwoods Maint Dist Public Art Fund GO Bond Debt Serv Technology Repl Fund Court Enhancement Fund Tourism Fund Fire/EMS Dev Fee Environmental Fund Streets Dev Fee Downtown Strategy Fund Economic Development Fund Special Revenue Fund Park/Rec Dev Fee Vehicle/Equip Repl Fund Facilities Reserve Fund Capital Projects Fund Streets Fund General Fund $1M$1M$1M $2M$2M$2M $2M$2M$2M $970K$970K $970K $842K$842K $842K FY2023 FY2024 FY2025 FY2026 FY2027 0 $1M $2M $3M Table of ContentsInvestment Earnings FY27 Proposed Budget | Fountain Hills Page 110Meeting Packet Page 113 of 295 FY27 Revenues by Fund General Fund $294,941 35.03% Capital Projects Fund $175,666 20.86% Facilities Reserve Fund $144,302 17.14% Streets Fund $105,205 12.49% Vehicle/Equip Repl Fund $49,052 5.83% Park/Rec Dev Fee $26,872 3.19% Downtown Strategy Fund $14,168 1.68% Economic Development Fund $13,350 1.59% Court Enhancement Fund $8,641 1.03% Fire/EMS Dev Fee $4,173 0.50% Tourism Fund $3,126 0.37% Public Art Fund $1,289 0.15% GO Bond Debt Serv $566 0.07% Cottonwoods Maint Dist $428 0.05% MPC Debt Serv $251 0.03% Category FY 2023 Actual FY 2024 Actual FY 2025 Actual FY 2026 Adopted Budget FY 2027 Proposed Budget FY 2026 Adopted Budget vs. FY 2027 Proposed Budget (% Change) General Fund $315,008 $728,807 $616,693 $348,507 $294,941 -15.4% Streets Fund $197,804 $558,547 $595,071 $191,193 $105,205 -45.0% Downtown Strategy Fund $15,480 $33,698 $33,743 $13,830 $14,168 2.4% Economic Development Fund $16,188 $38,131 $32,749 $10,766 $13,350 24.0% Tourism Fund $8,637 $6,623 $12,916 $3,000 $3,126 4.2% Special Revenue Fund $95,043 $15,303 $5,180 --0.0% Public Art Fund $2,506 $2,904 $2,072 $820 $1,289 57.2% Court Enhancement Fund $162 $159 $12,429 $8,789 $8,641 -1.7% Environmental Fund $19,386 $30,493 $9,373 --0.0% GO Bond Debt Serv $5,543 $8,509 $1,936 $500 $566 13.2% Eagle Mtn CFD Debt Serv $710 $1,062 $190 --0.0% MPC Debt Serv $402 $628 $533 $200 $251 25.5% Cottonwoods Maint Dist $555 $914 $850 $400 $428 7.0% Capital Projects Fund $132,253 $407,771 $498,270 $170,000 $175,666 3.3% Facilities Reserve Fund $136,114 $264,030 $360,779 $140,000 $144,302 3.1% 842K Revenues by Fund Table of ContentsInvestment Earnings FY27 Proposed Budget | Fountain Hills Page 111Meeting Packet Page 114 of 295 Category FY 2023 Actual FY 2024 Actual FY 2025 Actual FY 2026 Adopted Budget FY 2027 Proposed Budget FY 2026 Adopted Budget vs. FY 2027 Proposed Budget (% Change) Fire/EMS Dev Fee $14,650 $22,018 $9,890 $4,102 $4,173 1.7% Streets Dev Fee $16,161 $32,863 $38,467 $15,227 -- Park/Rec Dev Fee $48,188 $66,809 $67,096 $13,632 $26,872 97.1% Technology Repl Fund $5,367 $8,653 $9,512 --0.0% Vehicle/Equip Repl Fund $70,157 $117,504 $124,121 $49,052 $49,052 0.0% Total Revenues $1,100,314 $2,345,425 $2,431,871 $970,018 $842,030 -13.2% Table of ContentsInvestment Earnings FY27 Proposed Budget | Fountain Hills Page 112Meeting Packet Page 115 of 295 Other Revenues - Miscellaneous This section summarizes all other miscellaneous revenues collected by the Town by fund.  Revenue Summary The following charts include actual Other Miscellaneous revenues for FY2023 through FY2025, and projected FY2026 and FY2027 Other Miscellaneous revenues across all funds. Historical and Projected Revenues Across Sources Revenue Actual Revenue Surplus Revenue Budgeted FY2023 FY2024 FY2025 FY2026 FY2027 0 $100K $200K $300K $400K $500K Table of ContentsOther Revenues - Misc FY27 Proposed Budget | Fountain Hills Page 113Meeting Packet Page 116 of 295 Revenues by Object The following charts include actual Other Miscellaneous revenues by Object for FY2023 through FY2025, and projected FY2026 and FY2027 Other Miscellaneous revenues by Object across all funds. Historical and Projected Revenues by Object Non-Taxable Sales Auction/Recycle Proceeds Donations Convenience Fees Miscellaneous Revenue Restitution/Ins Proceeds Sponsorships Taxable Sales Reimbursements/Refunds FY27 Revenues by Object Taxable Sales $70,000 27.82% Sponsorships $50,000 19.87% Restitution/Ins Proceeds $31,000 12.32% Miscellaneous Revenue $30,000 11.92% Reimbursements/Refunds $30,000 11.92% Convenience Fees $23,000 9.14% Donations $15,660 6.22% Auction/Recycle Proceeds $2,000 0.79% Category FY 2023 Actual FY 2024 Actual FY 2025 Actual FY 2026 Adopted Budget FY 2027 Proposed Budget Sponsorships $55,624 $31,200 $45,050 $50,000 $50,000 General Fund $55,624 $31,200 $45,050 $50,000 $50,000 Donations $6,327 $17,857 $31,142 $10,000 $15,660 $407K$407K $407K $393K$393K $393K $474K$474K $474K $283K$283K $283K $252K$252K $252K FY2023 FY2024 FY2025 FY2026 FY2027 0 $200K $400K $600K 252K Revenues by Object Table of ContentsOther Revenues - Misc FY27 Proposed Budget | Fountain Hills Page 114Meeting Packet Page 117 of 295 Category FY 2023 Actual FY 2024 Actual FY 2025 Actual FY 2026 Adopted Budget FY 2027 Proposed Budget General Fund $2,327 $5,857 $5,992 $10,000 $10,000 Special Revenue Fund --$8,150 -$5,660 Public Art Fund --$17,000 -- Capital Projects Fund -$12,000 --- Facilities Reserve Fund $4,000 ---- Reimbursements/Refunds $168,756 $143,902 $253,708 $100,000 $30,000 General Fund $167,718 $143,902 $179,202 $100,000 $30,000 Public Art Fund $1,000 ---- GO Bond Debt Serv $38 -$125 -- Capital Projects Fund --$74,381 -- Auction/Recycle Proceeds $22,688 $23,161 $978 $2,000 $2,000 General Fund $2,563 $955 $734 $1,000 $1,000 Streets Fund $755 $1,481 $244 $1,000 $1,000 Technology Repl Fund $5 ---- Vehicle/Equip Repl Fund $19,366 $20,725 --- Restitution/Ins Proceeds $55,034 $44,978 $16,587 $31,000 $31,000 General Fund $1,270 -$1,590 $1,000 $1,000 Streets Fund $31,847 $44,978 $14,997 $30,000 $30,000 Vehicle/Equip Repl Fund $21,917 ---- Miscellaneous Revenue $17,088 $35,123 $28,060 $10,000 $30,000 General Fund $12,588 $35,123 $28,060 $10,000 $30,000 Downtown Strategy Fund $4,500 ---- Taxable Sales $57,399 $75,154 $79,684 $57,000 $70,000 General Fund $54,528 $72,391 $77,197 $57,000 $70,000 Economic Development Fund $2,856 $1,654 $1,411 -- Tourism Fund $14 $1,108 $1,076 -- Convenience Fees $22,847 $20,449 $18,817 $23,000 $23,000 General Fund $22,847 $20,449 $18,817 $23,000 $23,000 Non-Taxable Sales $1,202 $880 --- Economic Development Fund $1,202 $880 --- Total Revenues $406,964 $392,703 $474,026 $283,000 $251,660 Table of ContentsOther Revenues - Misc FY27 Proposed Budget | Fountain Hills Page 115Meeting Packet Page 118 of 295 Departments Summary The Town budget includes funding for six departments, the Mayor & Council, the Municipal Court, and various divisions. Most operational expenditures for these Departments/Divisions are paid for by the General Fund, but some are paid out of other funds. See the organizational structure and department & fund relationship information below. Organizational Structure The Organization Chart below graphically depicts the reporting units of the Town. All units, including the Mayor and Town Council, are responsible to the Citizens of Fountain Hills. The char t shows the various operating departments and divisions, as well as the positions that are appointed and services that are contracted.  Town of Fountain Hills - ORG Chart FY2027 Table of ContentsDepartments Summary FY27 Proposed Budget | Fountain Hills Page 116Meeting Packet Page 119 of 295 Department & Fund Relationship Most Town Department and Division expenditures are budgeted and paid for by the General Fund.  For example, the Fire Department and MCSO contracts are paid by the General Fund for Public Safety of our residents. Further, Mayor & Council, Development Ser vices, Administration (other than the Economic Development Division), Municipal Court and most of the Town Attorney's costs are paid for by the General Fund.  However, there are a few Departments/Divisions that operate out of other funds, as noted below: Public Works Department: General Fund  Streets Fund Capital Projects Fund (CIP projects) Community Services Depar tment: General Fund (most cultural and recreational expenditures) Public Art Fund (to maintain the Town's art) Capital Projects Fund (CIP projects) Economic Development Division (within Administration Department) Economic Development Fund (most Econ Dev operations) Downtown Strategy Fund (for Downtown District purposes) Tourism Fund (for Tourism purposes) Table of ContentsDepartments Summary FY27 Proposed Budget | Fountain Hills Page 117Meeting Packet Page 120 of 295 Mayor and Council  Mayor Gerry Friedel and the Town Council are charged with serving the best interests of the community by providing for its safety and well-being; respecting its special, small-town character and quality of life; providing superior public services; sustaining public trust through open and responsive government; and maintaining the stewardship and preservation of its financial and natural resources. Mayor and Council Bottom Row (Left to Right): Councilmember Brenda J. Kalivianakis Mayor Gerry M. Friedel Councilmember Hannah Larrabee Top Row (Left to Right): Councilmember Allen Skillicorn Councilmember Peggy McMahon Vice Mayor Gayle Earle Councilmember Rick Watts Table of ContentsMayor and Council FY27 Proposed Budget | Fountain Hills Page 118Meeting Packet Page 121 of 295 Expenditure Summary The following charts include actual departmental expenditures for FY2023 through FY2025, and budgeted FY2026 and FY2027 departmental expenditures for this Department. Historical and Budgeted Expenditures Across Department Expenditures by Object The following charts include actual departmental expenditures by Object for FY2023 through FY2025, and budgeted FY2026 and FY2027 departmental expenditures by Object for this Department. Historical and Budgeted Expenditures by Object Dues & Memberships Maintenance & Repair Utilities Equipment/Improvemen Internal Service Supplies Contractual Services Meetings & Training Payroll Expenses Expenditures Actual Expenditures Over Budget Expenditures Budgeted FY2023 FY2024 FY2025 FY2026 FY2027 0 $20K $40K $60K $80K $100K $70K$70K $70K $68K$68K $68K $63K$63K $63K $73K$73K $73K $80K$80K $80K FY2023 FY2024 FY2025 FY2026 FY2027 0 $25K $50K $75K $100K Table of ContentsMayor and Council FY27 Proposed Budget | Fountain Hills Page 119Meeting Packet Page 122 of 295 FY27 Expenditures by Object Payroll Expenses $40,514 50.36% Meetings & Training $17,950 22.31% Supplies $7,700 9.57% Contractual Services $7,660 9.52% Internal Service $5,538 6.88% Utilities $1,080 1.34% Category FY 2023 Actual FY 2024 Actual FY 2025 Actual FY 2026 Adopted Budget FY 2027 Proposed Budget FY 2026 Adopted Budget vs. FY 2027 Proposed Budget (% Change) Payroll Expenses $40,348 $39,050 $38,940 $40,572 $40,514 -0.1% Dues & Memberships $112 ----0.0% Meetings & Training $8,832 $12,052 $8,271 $15,575 $17,950 15.2% Maintenance & Repair $135 $78 ---0.0% Utilities ----$1,080 - Contractual Services $5,779 $6,311 $2,573 $7,070 $7,660 8.3% Supplies $4,763 $3,580 $7,517 $4,700 $7,700 63.8% Equipment/Improvemen $4,365 $1,580 $153 --0.0% Internal Service $5,947 $5,564 $5,623 $5,538 $5,538 0.0% Total Expenditures $70,280 $68,215 $63,077 $73,455 $80,442 9.5% 80.4K Expenditures by Object Table of ContentsMayor and Council FY27 Proposed Budget | Fountain Hills Page 120Meeting Packet Page 123 of 295 Administration The Administration Department is dedicated to ser ving the residents of Fountain Hills by providing administrative direction and support to the Town's Departments. Administration provides accurate and current information on Council legislation and administrative actions; provides for the delivery of comprehensive financial services to internal and external customers; provides support to Town staff ; reaches out to political leaders and geographical neighbors to continue to grow relationships in the best interests of the Town; and enhances the Town's economic base through business attraction, retention and business vitality activities. ORG Char t for Administration Depar tment Table of ContentsAdministration FY27 Proposed Budget | Fountain Hills Page 121Meeting Packet Page 124 of 295 Expenditure Summary The following charts include actual departmental expenditures for FY2023 through FY2025, and budgeted FY2026 and FY2027 departmental expenditures for this Department from the General Fund. The Economic Development Division is budgeted in the Economic Development Funds, presented on a separate Division page later in this book. Historical and Budgeted Expenditures Across Department Expenditures Actual Expenditures Over Budget Expenditures Budgeted FY2023 FY2024 FY2025 FY2026 FY2027 0 $1M $2M $3M $4M Table of ContentsAdministration FY27 Proposed Budget | Fountain Hills Page 122Meeting Packet Page 125 of 295 Expenditures by Object The following charts include actual departmental expenditures by Object for FY2023 through FY2025, and budgeted FY2026 and FY2027 departmental expenditures by Object for this Department from the General Fund. The Economic Development Division is budgeted in the Economic Development Funds. Historical and Budgeted Expenditures by Object Capital Expenditures Utilities Dues & Memberships Internal Service Supplies Meetings & Training Equipment/Improvemen Maintenance & Repair Contractual Services Payroll Expenses FY27 Expenditures by Object Payroll Expenses $2,298,677 66.44% Contractual Services $610,142 17.63% Maintenance & Repair $364,550 10.54% Equipment/Improvemen $60,750 1.76% Meetings & Training $59,314 1.71% Supplies $40,695 1.18% Internal Service $13,956 0.40% Dues & Memberships $9,973 0.29% Utilities $1,920 0.06% $3M$3M$3M $3M$3M$3M $3M$3M$3M $3M$3M$3M $3M$3M$3M FY2023 FY2024 FY2025 FY2026 FY2027 0 $1M $2M $3M $4M 3.46M Table of ContentsAdministration FY27 Proposed Budget | Fountain Hills Page 123Meeting Packet Page 126 of 295 Category FY 2023 Actual FY 2024 Actual FY 2025 Actual FY 2026 Adopted Budget FY 2027 Proposed Budget FY 2026 Adopted Budget vs. FY 2027 Proposed Budget (% Change) Payroll Expenses $1,763,230 $1,899,657 $1,999,913 $2,111,420 $2,298,677 8.9% Dues & Memberships $22,189 $5,904 $6,863 $10,173 $9,973 -2.0% Meetings & Training $18,162 $20,632 $26,740 $49,128 $59,314 20.7% Maintenance & Repair $285,190 $282,166 $347,466 $379,192 $364,550 -3.9% Utilities $14,875 $17,638 $983 $2,540 $1,920 -24.4% Contractual Services $576,145 $474,962 $549,745 $597,895 $610,142 2.0% Supplies $12,208 $14,874 $19,376 $29,465 $40,695 38.1% Equipment/Improvemen $16,108 $11,724 $60,460 $58,300 $60,750 4.2% Internal Service $15,426 $13,280 $13,616 $14,505 $13,956 -3.8% Capital Expenditures --$13,023 --0.0% Total Expenditures $2,723,534 $2,740,837 $3,038,185 $3,252,618 $3,459,977 6.4% Expenditures by Division The following charts include actual expenditures by each division within the Administration Depar tment for FY2023 through FY2025, and budgeted FY2026 and FY2027 divisional expenditures for this Department from the General Fund. The Economic Development Division is budgeted in the Economic Development Funds. Each of the 9 divisions within the Administration Department has its own budget book section on the following pages. Historical and Budgeted Expenditures by Division Purchasing Public Information Town Clerk Legal Services Town Manager Administrative Services Information Tech Finance Expenditures by Object $3M$3M$3M $3M$3M$3M $3M$3M$3M $3M$3M$3M $3M$3M$3M FY2023 FY2024 FY2025 FY2026 FY2027 0 $1M $2M $3M $4M Table of ContentsAdministration FY27 Proposed Budget | Fountain Hills Page 124Meeting Packet Page 127 of 295 FY27 Expenditures by Division Finance $813,359 23.51% Information Tech $610,433 17.64% Administrative Services $525,075 15.18% Town Clerk $397,504 11.49% Town Manager $393,094 11.36% Legal Services $323,868 9.36% Public Information $232,323 6.71% Purchasing $164,321 4.75% Category FY 2023 Actual FY 2024 Actual FY 2025 Actual FY 2026 Adopted Budget FY 2027 Proposed Budget FY 2026 Adopted Budget vs. FY 2027 Proposed Budget (% Change) Town Manager $538,117 $351,831 $359,522 $396,325 $393,094 -0.8% Information Tech $413,499 $452,702 $549,882 $597,852 $610,433 2.1% Town Clerk $187,188 $188,328 $254,266 $259,321 $397,504 53.3% Administrative Services $263,609 $386,830 $461,787 $503,653 $525,075 4.3% Finance $667,825 $698,968 $744,624 $792,743 $813,359 2.6% Public Information $229,253 $221,524 $203,363 $231,972 $232,323 0.2% Legal Services $295,058 $300,853 $315,835 $314,836 $323,868 2.9% Purchasing $128,985 $139,802 $148,907 $155,916 $164,321 5.4% Total Expenditures $2,723,534 $2,740,837 $3,038,185 $3,252,618 $3,459,977 6.4% 3.46M Expenditures by Division Table of ContentsAdministration FY27 Proposed Budget | Fountain Hills Page 125Meeting Packet Page 128 of 295 Town Manager The Town Manager, Rachael Goodwin, provides leadership to ensure a high quality of life for the citizens of Fountain Hills by utilizing Town resources to the greatest extent possible and offering superior service. She works in conjunction with the Town Council and the Strategic Planning Advisory Commission (SPAC) for successful implementation of Operational Priorities and Strategic Plan Goals. Per direction and approval of the Town Council, she also administers fee-for-service contracts and communicates with the public. Rachael Goodwin Town Manager Table of ContentsTown Manager FY27 Proposed Budget | Fountain Hills Page 126Meeting Packet Page 129 of 295 Expenditure Summary The following charts include actual division expenditures within the Administration Department for FY2023 through FY2025, and budgeted FY2026 and FY2027 division expenditures. Historical and Budgeted Expenditures Across Division Expenditures by Object The following charts include actual division expenditures within the Administration Department by Object for FY2023 through FY2025, and budgeted FY2026 and FY2027 division expenditures by Object. Historical and Budgeted Expenditures by Object Equipment/Improvemen Contractual Services Maintenance & Repair Utilities Supplies Internal Service Dues & Memberships Meetings & Training Payroll Expenses Expenditures Actual Expenditures Over Budget Expenditures Budgeted FY2023 FY2024 FY2025 FY2026 FY2027 0 $100K $200K $300K $400K $500K $600K $538K$538K $538K $352K$352K $352K $360K$360K $360K $396K$396K $396K $393K$393K $393K FY2023 FY2024 FY2025 FY2026 FY2027 0 $200K $400K $600K Table of ContentsTown Manager FY27 Proposed Budget | Fountain Hills Page 127Meeting Packet Page 130 of 295 FY27 Expenditures by Object Payroll Expenses $378,231 96.22% Meetings & Training $7,500 1.91% Dues & Memberships $2,630 0.67% Internal Service $1,813 0.46% Utilities $1,380 0.35% Supplies $1,260 0.32% Maintenance & Repair $200 0.05% Contractual Services $80 0.02% Category FY 2023 Actual FY 2024 Actual FY 2025 Actual FY 2026 Adopted Budget FY 2027 Proposed Budget FY 2026 Adopted Budget vs. FY 2027 Proposed Budget (% Change) Payroll Expenses $529,864 $341,078 $347,839 $382,066 $378,231 -1.0% Dues & Memberships $3,042 $1,528 $1,868 $3,500 $2,630 -24.9% Meetings & Training $2,408 $5,374 $5,980 $7,500 $7,500 0.0% Maintenance & Repair $317 --$200 $200 0.0% Utilities -$503 $487 -$1,380 - Contractual Services $57 $21 -$80 $80 0.0% Supplies $378 $1,611 $1,852 $1,160 $1,260 8.6% Equipment/Improvemen -$166 ---0.0% Internal Service $2,051 $1,550 $1,496 $1,819 $1,813 -0.3% Total Expenditures $538,117 $351,831 $359,522 $396,325 $393,094 -0.8% The FY2027 budgeted payroll expenses above include the Town Manager and the Executive Assistant to the Town Manager, inclusive of benefits and payroll taxes.  393K Expenditures by Object Table of ContentsTown Manager FY27 Proposed Budget | Fountain Hills Page 128Meeting Packet Page 131 of 295 Town Clerk The Town Clerk Division supports the values of the community and the organization through the delivery of quality customer service; conducting fair and open municipal elections; providing broad organizational support; managing the Town's records management program and accessibility to public records; overseeing board and commission administration; and ensuring that official postings, notices and related publications meet legal compliance. Expenditure Summary The following charts include actual division expenditures within the Administration Department for FY2023 through FY2025, and budgeted FY2026 and FY2027 division expenditures. Historical and Budgeted Expenditures Across Division Expenditures Actual Expenditures Budgeted FY2023 FY2024 FY2025 FY2026 FY2027 0 $100K $200K $300K $400K $500K Table of ContentsTown Clerk FY27 Proposed Budget | Fountain Hills Page 129Meeting Packet Page 132 of 295 Expenditures by Object The following charts include actual division expenditures within the Administration Department by Object for FY2023 through FY2025, and budgeted FY2026 and FY2027 division expenditures by Object. Historical and Budgeted Expenditures by Object Equipment/Improvemen Dues & Memberships Supplies Internal Service Meetings & Training Maintenance & Repair Contractual Services Payroll Expenses FY27 Expenditures by Object Payroll Expenses $324,726 81.69% Contractual Services $57,080 14.36% Meetings & Training $9,060 2.28% Maintenance & Repair $3,000 0.75% Dues & Memberships $1,620 0.41% Internal Service $1,193 0.30% Supplies $825 0.21% Category FY 2023 Actual FY 2024 Actual FY 2025 Actual FY 2026 Adopted Budget FY 2027 Proposed Budget FY 2026 Adopted Budget vs. FY 2027 Proposed Budget (% Change) Payroll Expenses $148,416 $162,142 $192,728 $199,290 $324,726 62.9% $187K$187K $187K $188K$188K $188K $254K$254K $254K $259K$259K $259K $398K$398K $398K FY2023 FY2024 FY2025 FY2026 FY2027 0 $200K $400K $600K 398K Expenditures by Object Table of ContentsTown Clerk FY27 Proposed Budget | Fountain Hills Page 130Meeting Packet Page 133 of 295 Category FY 2023 Actual FY 2024 Actual FY 2025 Actual FY 2026 Adopted Budget FY 2027 Proposed Budget FY 2026 Adopted Budget vs. FY 2027 Proposed Budget (% Change) Dues & Memberships $383 $395 $175 $950 $1,620 70.5% Meetings & Training $145 $255 $329 $5,124 $9,060 76.8% Maintenance & Repair $14,891 $5,720 $25,055 -$3,000 - Contractual Services $21,141 $16,956 $33,438 $51,580 $57,080 10.7% Supplies $454 $1,209 $849 $695 $825 18.7% Equipment/Improvemen -$279 $458 $50 -- Internal Service $1,757 $1,373 $1,236 $1,632 $1,193 -26.9% Total Expenditures $187,188 $188,328 $254,266 $259,321 $397,504 53.3% The FY2027 budgeted payroll expenses above include the Town Clerk and a new permanent position for Deputy Town Clerk, inclusive of benefits and payroll taxes. The Deputy Town Clerk has been requested by the Town Clerk through the FY2027 budget supplemental process, subject to Council approval. Table of ContentsTown Clerk FY27 Proposed Budget | Fountain Hills Page 131Meeting Packet Page 134 of 295 Administrative Ser vices The Administrative Services Division leads the organization in the acquisition, maintenance, development, supervision and measurement of human assets and the results of their work (quality, productivity and service).  David Trimble Deputy Town Manager/Administrative Services Director Table of ContentsAdministrative Services FY27 Proposed Budget | Fountain Hills Page 132Meeting Packet Page 135 of 295 Expenditure Summary The following charts include actual division expenditures within the Administration Department for FY2023 through FY2025, and budgeted FY2026 and FY2027 division expenditures. Historical and Budgeted Expenditures Across Division Expenditures by Object The following charts include actual division expenditures within the Administration Department by Object for FY2023 through FY2025, and budgeted FY2026 and FY2027 division expenditures by Object. Historical and Budgeted Expenditures by Object Equipment/Improvemen Dues & Memberships Internal Service Maintenance & Repair Supplies Meetings & Training Contractual Services Payroll Expenses Expenditures Actual Expenditures Budgeted FY2023 FY2024 FY2025 FY2026 FY2027 0 $100K $200K $300K $400K $500K $600K $264K$264K $264K $387K$387K $387K $462K$462K $462K $504K$504K $504K $525K$525K $525K FY2023 FY2024 FY2025 FY2026 FY2027 0 $200K $400K $600K Table of ContentsAdministrative Services FY27 Proposed Budget | Fountain Hills Page 133Meeting Packet Page 136 of 295 FY27 Expenditures by Object Payroll Expenses $403,589 76.86% Contractual Services $63,589 12.11% Meetings & Training $27,179 5.18% Supplies $16,290 3.10% Maintenance & Repair $10,100 1.92% Internal Service $2,585 0.49% Dues & Memberships $1,743 0.33% Category FY 2024 Actual FY 2025 Actual FY 2026 Adopted Budget FY 2027 Proposed Budget FY 2026 Adopted Budget vs. FY 2027 Proposed Budget (% Change) Payroll Expenses $324,132 $374,414 $387,649 $403,589 4.1% Dues & Memberships $664 $939 $1,743 $1,743 0.0% Meetings & Training $10,042 $15,072 $27,179 $27,179 0.0% Maintenance & Repair $4,761 $11,056 $9,845 $10,100 2.6% Contractual Services $36,658 $44,559 $61,074 $63,589 4.1% Supplies $8,065 $13,252 $13,890 $16,290 17.3% Equipment/Improvemen $360 ---0.0% Internal Service $2,148 $2,494 $2,273 $2,585 13.7% Total Expenditures $386,830 $461,787 $503,653 $525,075 4.3% 525K Expenditures by Object Table of ContentsAdministrative Services FY27 Proposed Budget | Fountain Hills Page 134Meeting Packet Page 137 of 295 Finance The Finance Division provides efficient and cost-effective financial oversight of both the short and long-term components of the Town's functions. The division strives to be proactive in providing financial information to staff and citizens. The division also provides safe, secure and effective cash, banking, merchant service, tax service and debt service administration for the Town. Paul Soldinger Chief Financial Officer Table of ContentsFinance FY27 Proposed Budget | Fountain Hills Page 135Meeting Packet Page 138 of 295 Expenditure Summary The following charts include actual division expenditures within the Administration Department for FY2023 through FY2025, and budgeted FY2026 and FY2027 division expenditures. Historical and Budgeted Expenditures Across Division Expenditures Actual Expenditures Budgeted FY2023 FY2024 FY2025 FY2026 FY2027 0 $200K $400K $600K $800K $1,000K Table of ContentsFinance FY27 Proposed Budget | Fountain Hills Page 136Meeting Packet Page 139 of 295 Expenditures by Object The following charts include actual division expenditures within the Administration Department by Object for FY2023 through FY2025, and budgeted FY2026 and FY2027 division expenditures by Object. Historical and Budgeted Expenditures by Object Equipment/Improvemen Dues & Memberships Meetings & Training Internal Service Supplies Maintenance & Repair Contractual Services Payroll Expenses FY27 Expenditures by Object Payroll Expenses $668,500 82.19% Contractual Services $117,825 14.49% Supplies $11,120 1.37% Meetings & Training $5,125 0.63% Internal Service $5,109 0.63% Maintenance & Repair $3,200 0.39% Dues & Memberships $2,480 0.30% Category FY 2023 Actual FY 2024 Actual FY 2025 Actual FY 2026 Adopted Budget FY 2027 Proposed Budget FY 2026 Adopted Budget vs. FY 2027 Proposed Budget (% Change) Payroll Expenses $450,700 $574,250 $605,027 $639,710 $668,500 4.5% $668K$668K $668K $699K$699K $699K $745K$745K $745K $793K$793K $793K $813K$813K $813K FY2023 FY2024 FY2025 FY2026 FY2027 0 $250K $500K $750K $1,000K 813K Expenditures by Object Table of ContentsFinance FY27 Proposed Budget | Fountain Hills Page 137Meeting Packet Page 140 of 295 Category FY 2023 Actual FY 2024 Actual FY 2025 Actual FY 2026 Adopted Budget FY 2027 Proposed Budget FY 2026 Adopted Budget vs. FY 2027 Proposed Budget (% Change) Dues & Memberships $2,983 $2,319 $1,855 $2,480 $2,480 0.0% Meetings & Training $3,107 $2,566 $2,308 $5,125 $5,125 0.0% Maintenance & Repair $34,025 $34,599 $3,032 $3,200 $3,200 0.0% Contractual Services $167,355 $77,434 $125,763 $125,325 $117,825 -6.0% Supplies $3,017 $2,283 $1,630 $11,120 $11,120 0.0% Equipment/Improvemen $826 $713 ---0.0% Internal Service $5,812 $4,805 $5,010 $5,783 $5,109 -11.7% Total Expenditures $667,825 $698,968 $744,624 $792,743 $813,359 2.6% Table of ContentsFinance FY27 Proposed Budget | Fountain Hills Page 138Meeting Packet Page 141 of 295 Information Technology The Information Technology Division is dedicated to providing professional support in a timely and responsive manner while focusing on high availability and reliable technology. The Division also endeavors to implement alternative technologies to reduce operating and maintenance costs while improving the user experience. Expenditure Summary The following charts include actual division expenditures within the Administration Department for FY2023 through FY2025, and budgeted FY2026 and FY2027 division expenditures. Historical and Budgeted Expenditures Across Division Expenditures Actual Expenditures Over Budget Expenditures Budgeted FY2023 FY2024 FY2025 FY2026 FY2027 0 $200K $400K $600K $800K Table of ContentsInformation Technology FY27 Proposed Budget | Fountain Hills Page 139Meeting Packet Page 142 of 295 Expenditures by Object The following charts include actual division expenditures within the Administration Department by Object for FY2023 through FY2025, and budgeted FY2026 and FY2027 division expenditures by Object. Historical and Budgeted Expenditures by Object Dues & Memberships Contractual Services Internal Service Supplies Capital Expenditures Meetings & Training Utilities Equipment/Improvemen Payroll Expenses Maintenance & Repair FY27 Expenditures by Object Maintenance & Repair $326,550 53.49% Payroll Expenses $213,361 34.95% Equipment/Improvemen $58,250 9.54% Meetings & Training $7,250 1.19% Supplies $2,200 0.36% Internal Service $1,282 0.21% Contractual Services $1,000 0.16% Utilities $540 0.09% $413K$413K $413K $453K$453K $453K $550K$550K $550K $598K$598K $598K $610K$610K $610K FY2023 FY2024 FY2025 FY2026 FY2027 0 $250K $500K $750K 610K Table of ContentsInformation Technology FY27 Proposed Budget | Fountain Hills Page 140Meeting Packet Page 143 of 295 Category FY 2023 Actual FY 2024 Actual FY 2025 Actual FY 2026 Adopted Budget FY 2027 Proposed Budget FY 2026 Adopted Budget vs. FY 2027 Proposed Budget (% Change) Payroll Expenses $176,898 $227,954 $199,309 $205,228 $213,361 4.0% Dues & Memberships $108 -$1,070 --0.0% Meetings & Training $5,125 -$2,263 $3,000 $7,250 141.7% Maintenance & Repair $198,444 $193,811 $280,685 $329,900 $326,550 -1.0% Utilities $14,875 $16,644 $495 $2,540 $540 -78.7% Contractual Services $1,600 $1,000 $1,000 $1,000 $1,000 0.0% Supplies $1,130 $1,540 $1,399 $1,600 $2,200 37.5% Equipment/Improvemen $13,788 $10,206 $49,130 $53,250 $58,250 9.4% Internal Service $1,531 $1,547 $1,507 $1,334 $1,282 -3.9% Capital Expenditures --$13,023 --0.0% Total Expenditures $413,499 $452,702 $549,882 $597,852 $610,433 2.1% Expenditures by Object Table of ContentsInformation Technology FY27 Proposed Budget | Fountain Hills Page 141Meeting Packet Page 144 of 295 Purchasing The Purchasing Division is responsible for supporting the Town's need for materials and services in accordance with Federal, State, and Town requirements. These Procurements are conducted in an open, competitive, and professional manner, which maximizes the effectiveness of tax dollars. Expenditure Summary The following charts include actual division expenditures within the Administration Department for FY2023 through FY2025, and budgeted FY2026 and FY2027 division expenditures. Historical and Budgeted Expenditures Across Division Expenditures Actual Expenditures Budgeted FY2023 FY2024 FY2025 FY2026 FY2027 0 $50K $100K $150K $200K Table of ContentsPurchasing FY27 Proposed Budget | Fountain Hills Page 142Meeting Packet Page 145 of 295 Expenditures by Object The following charts include actual division expenditures within the Administration Department by Object for FY2023 through FY2025, and budgeted FY2026 and FY2027 division expenditures by Object. Historical and Budgeted Expenditures by Object Meetings & Training Internal Service Contractual Services Dues & Memberships Maintenance & Repair Payroll Expenses FY27 Expenditures by Object Payroll Expenses $142,832 86.92% Maintenance & Repair $18,000 10.95% Contractual Services $2,500 1.52% Internal Service $789 0.48% Meetings & Training $200 0.12% Category FY 2023 Actual FY 2024 Actual FY 2025 Actual FY 2026 Adopted Budget FY 2027 Proposed Budget FY 2026 Adopted Budget vs. FY 2027 Proposed Budget (% Change) Payroll Expenses $113,516 $124,482 $130,520 $136,880 $142,832 4.3% Dues & Memberships $14,568 ----0.0% Meetings & Training ---$200 $200 0.0% $129K$129K $129K $140K$140K $140K $149K$149K $149K $156K$156K $156K $164K$164K $164K FY2023 FY2024 FY2025 FY2026 FY2027 0 $50K $100K $150K $200K 164K Expenditures by Object Table of ContentsPurchasing FY27 Proposed Budget | Fountain Hills Page 143Meeting Packet Page 146 of 295 Category FY 2023 Actual FY 2024 Actual FY 2025 Actual FY 2026 Adopted Budget FY 2027 Proposed Budget FY 2026 Adopted Budget vs. FY 2027 Proposed Budget (% Change) Maintenance & Repair -$14,568 $14,390 $15,547 $18,000 15.8% Contractual Services $66 -$3,259 $2,500 $2,500 0.0% Internal Service $835 $751 $738 $789 $789 0.0% Total Expenditures $128,985 $139,802 $148,907 $155,916 $164,321 5.4% Table of ContentsPurchasing FY27 Proposed Budget | Fountain Hills Page 144Meeting Packet Page 147 of 295 Public Information The mission of the Community Relations/Public Information Office is to be the TRUSTED SOURCE of information by accurately communicating news and information to Fountain Hills' citizens, elected officials, customers, employees, and news media via internal and external communication sources. Mike Pelton Community Relations Director Table of ContentsPublic Information FY27 Proposed Budget | Fountain Hills Page 145Meeting Packet Page 148 of 295 Expenditure Summary The following charts include actual division expenditures within the Administration Department for FY2023 through FY2025, and budgeted FY2026 and FY2027 division expenditures. Historical and Budgeted Expenditures Across Division Expenditures Actual Expenditures Over Budget Expenditures Budgeted FY2023 FY2024 FY2025 FY2026 FY2027 0 $50K $100K $150K $200K $250K $300K Table of ContentsPublic Information FY27 Proposed Budget | Fountain Hills Page 146Meeting Packet Page 149 of 295 Expenditures by Object The following charts include actual division expenditures within the Administration Department by Object for FY2023 through FY2025, and budgeted FY2026 and FY2027 division expenditures by Object. Historical and Budgeted Expenditures by Object Utilities Internal Service Dues & Memberships Meetings & Training Supplies Equipment/Improvemen Maintenance & Repair Contractual Services Payroll Expenses FY27 Expenditures by Object Payroll Expenses $167,438 72.07% Contractual Services $44,200 19.03% Supplies $9,000 3.87% Maintenance & Repair $3,500 1.51% Meetings & Training $3,000 1.29% Equipment/Improvemen $2,500 1.08% Dues & Memberships $1,500 0.65% Internal Service $1,185 0.51% $229K$229K $229K $222K$222K $222K $203K$203K $203K $232K$232K $232K $232K$232K $232K FY2023 FY2024 FY2025 FY2026 FY2027 0 $100K $200K $300K 232K Table of ContentsPublic Information FY27 Proposed Budget | Fountain Hills Page 147Meeting Packet Page 150 of 295 Category FY 2023 Actual FY 2024 Actual FY 2025 Actual FY 2026 Adopted Budget FY 2027 Proposed Budget FY 2026 Adopted Budget vs. FY 2027 Proposed Budget (% Change) Payroll Expenses $132,392 $145,619 $150,076 $160,597 $167,438 4.3% Dues & Memberships $466 $998 $956 $1,500 $1,500 0.0% Meetings & Training $1,827 $2,395 $788 $1,000 $3,000 200.0% Maintenance & Repair $29,003 $28,708 $13,249 $20,500 $3,500 -82.9% Utilities -$491 ---0.0% Contractual Services $62,564 $42,040 $25,890 $41,500 $44,200 6.5% Supplies $396 $167 $395 $1,000 $9,000 800.0% Equipment/Improvemen $1,495 -$10,872 $5,000 $2,500 -50.0% Internal Service $1,112 $1,106 $1,135 $875 $1,185 35.4% Total Expenditures $229,253 $221,524 $203,363 $231,972 $232,323 0.2% Expenditures by Object Table of ContentsPublic Information FY27 Proposed Budget | Fountain Hills Page 148Meeting Packet Page 151 of 295 Economic Development Economic Development in Fountain Hills requires a collaborative effort to ensure success. The Town of Fountain Hills plays a key role along with the business community and residents. The Town works collaboratively with the various stakeholder groups and other agencies in its effort to diversify the local economy. The Economic Development Plan is a multi-tiered approach to building a strong economic base. Creating more base jobs locally will attract more year-round residents to live, work and play in the community. Expanding the market for local businesses creates revenues that support the community's quality of life. As revenues are generated and the economic base expands, revenues are available for basic ser vices such as parks, recreation and roadway improvements. Amanda Jacobs Economic Development Director Table of ContentsEconomic Development FY27 Proposed Budget | Fountain Hills Page 149Meeting Packet Page 152 of 295 Expenditure Summary The following charts include actual division expenditures within the Administration Department for FY2023 through FY2025, and budgeted FY2026 and FY2027 division expenditures. Historical and Budgeted Expenditures Across Division Expenditures Actual Expenditures Over Budget Expenditures Budgeted FY2023 FY2024 FY2025 FY2026 FY2027 0 $250K $500K $750K $1,000K $1,250K Table of ContentsEconomic Development FY27 Proposed Budget | Fountain Hills Page 150Meeting Packet Page 153 of 295 Expenditures by Fund The following charts include actual division expenditures within the Administration Department by Fund for FY2023 through FY2025, and budgeted FY2026 and FY2027 division expenditures by Fund. Historical and Budgeted Expenditures by Fund Downtown Strategy Fund Tourism Fund Economic Development Fund FY27 Expenditures by Fund Economic Development Fund $503,234 50.87% Tourism Fund $245,756 24.84% Downtown Strategy Fund $240,200 24.28% Category FY 2023 Actual FY 2024 Actual FY 2025 Actual FY 2026 Adopted Budget FY 2027 Proposed Budget FY 2026 Adopted Budget vs. FY 2027 Proposed Budget (% Change) Downtown Strategy Fund $54,623 $109,910 $156,114 $165,200 $240,200 45.4% Maintenance & Repair $1,553 $1,176 $13,238 $6,800 $21,800 220.6% Contractual Services $53,070 $108,734 $142,849 $158,400 $178,400 12.6% Supplies --$27 --0.0% Capital Expenditures ----$40,000 - Economic Development Fund $306,816 $216,703 $260,196 $471,378 $503,234 6.8% $609K$609K $609K $657K$657K $657K $806K$806K $806K $970K$970K $970K $989K$989K $989K FY2023 FY2024 FY2025 FY2026 FY2027 0 $500K $1,000K $1,500K 989K Expenditures by Fund Table of ContentsEconomic Development FY27 Proposed Budget | Fountain Hills Page 151Meeting Packet Page 154 of 295 Category FY 2023 Actual FY 2024 Actual FY 2025 Actual FY 2026 Adopted Budget FY 2027 Proposed Budget FY 2026 Adopted Budget vs. FY 2027 Proposed Budget (% Change) Payroll Expenses $147,246 $166,488 $160,607 $299,008 $311,091 4.0% Dues & Memberships $1,665 $1,785 $4,223 $1,299 $3,614 178.2% Meetings & Training $2,610 $3,937 $4,585 $6,320 $6,320 0.0% Maintenance & Repair $13,193 $14,589 $15,335 $20,325 $20,268 -0.3% Utilities --$325 --0.0% Contractual Services $22,663 $27,492 $66,742 $143,269 $150,260 4.9% Supplies $20,978 $1,449 $7,067 $400 $10,400 2,500.0% Equipment/Improvemen --$230 --0.0% Internal Service $1,122 $962 $1,081 $757 $1,281 69.2% Transfers Out $97,340 ----0.0% Tourism Fund $247,824 $330,387 $389,372 $333,425 $245,756 -26.3% Payroll Expenses $70,557 $82,262 $64,414 --0.0% Dues & Memberships $7,805 $820 $1,135 $555 $1,693 205.0% Meetings & Training $665 $888 $1,516 $3,500 $3,000 -14.3% Maintenance & Repair $63,152 $24,365 $41,336 $49,780 $35,780 -28.1% Utilities ---$2,050 -- Contractual Services $96,328 $211,068 $271,880 $268,409 $189,970 -29.2% Supplies $8,113 $10,233 $8,147 $6,880 $13,280 93.0% Equipment/Improvemen $43 --$1,000 $1,000 0.0% Internal Service $1,162 $751 $945 $1,251 $1,033 -17.4% Total Expenditures $609,263 $657,000 $805,682 $970,003 $989,190 2.0% Table of ContentsEconomic Development FY27 Proposed Budget | Fountain Hills Page 152Meeting Packet Page 155 of 295 Expenditures by Object The following charts include actual division expenditures within the Administration Department by Object for FY2023 through FY2025, and budgeted FY2026 and FY2027 division expenditures by Object. Historical and Budgeted Expenditures by Object Equipment/Improvemen Utilities Internal Service Dues & Memberships Meetings & Training Capital Expenditures Supplies Transfers Out Maintenance & Repair Payroll Expenses Contractual Services FY27 Expenditures by Object Contractual Services $518,630 52.43% Payroll Expenses $311,091 31.45% Maintenance & Repair $77,848 7.87% Capital Expenditures $40,000 4.04% Supplies $23,680 2.39% Meetings & Training $9,320 0.94% Dues & Memberships $5,307 0.54% Internal Service $2,314 0.23% Equipment/Improvemen $1,000 0.10% $609K$609K $609K $657K$657K $657K $806K$806K $806K $970K$970K $970K $989K$989K $989K FY2023 FY2024 FY2025 FY2026 FY2027 0 $500K $1,000K $1,500K 989K Table of ContentsEconomic Development FY27 Proposed Budget | Fountain Hills Page 153Meeting Packet Page 156 of 295 Category FY 2023 Actual FY 2024 Actual FY 2025 Actual FY 2026 Adopted Budget FY 2027 Proposed Budget FY 2026 Adopted Budget vs. FY 2027 Proposed Budget (% Change) Payroll Expenses $217,803 $248,750 $225,021 $299,008 $311,091 4.0% Economic Development Fund $147,246 $166,488 $160,607 $299,008 $311,091 4.0% Tourism Fund $70,557 $82,262 $64,414 --0.0% Dues & Memberships $9,470 $2,605 $5,358 $1,854 $5,307 186.2% Economic Development Fund $1,665 $1,785 $4,223 $1,299 $3,614 178.2% Tourism Fund $7,805 $820 $1,135 $555 $1,693 205.0% Meetings & Training $3,275 $4,826 $6,100 $9,820 $9,320 -5.1% Economic Development Fund $2,610 $3,937 $4,585 $6,320 $6,320 0.0% Tourism Fund $665 $888 $1,516 $3,500 $3,000 -14.3% Maintenance & Repair $77,897 $40,130 $69,909 $76,905 $77,848 1.2% Downtown Strategy Fund $1,553 $1,176 $13,238 $6,800 $21,800 220.6% Economic Development Fund $13,193 $14,589 $15,335 $20,325 $20,268 -0.3% Tourism Fund $63,152 $24,365 $41,336 $49,780 $35,780 -28.1% Utilities --$325 $2,050 -- Economic Development Fund --$325 --0.0% Tourism Fund ---$2,050 -- Contractual Services $172,061 $347,295 $481,471 $570,078 $518,630 -9.0% Downtown Strategy Fund $53,070 $108,734 $142,849 $158,400 $178,400 12.6% Economic Development Fund $22,663 $27,492 $66,742 $143,269 $150,260 4.9% Tourism Fund $96,328 $211,068 $271,880 $268,409 $189,970 -29.2% Supplies $29,091 $11,681 $15,241 $7,280 $23,680 225.3% Downtown Strategy Fund --$27 --0.0% Economic Development Fund $20,978 $1,449 $7,067 $400 $10,400 2,500.0% Tourism Fund $8,113 $10,233 $8,147 $6,880 $13,280 93.0% Equipment/Improvemen $43 -$230 $1,000 $1,000 0.0% Economic Development Fund --$230 --0.0% Tourism Fund $43 --$1,000 $1,000 0.0% Internal Service $2,283 $1,713 $2,026 $2,008 $2,314 15.2% Economic Development Fund $1,122 $962 $1,081 $757 $1,281 69.2% Tourism Fund $1,162 $751 $945 $1,251 $1,033 -17.4% Transfers Out $97,340 ----0.0% Economic Development Fund $97,340 ----0.0% Capital Expenditures ----$40,000 - Downtown Strategy Fund ----$40,000 - Total Expenditures $609,263 $657,000 $805,682 $970,003 $989,190 2.0% Expenditures by Object Table of ContentsEconomic Development FY27 Proposed Budget | Fountain Hills Page 154Meeting Packet Page 157 of 295 Legal Ser vices The Town Attorney and Town Prosecutor are appointed by the Town Council to serve as general counsel for the Town in addition to its responsibility for the efficient disposition of criminal cases prosecuted in the Municipal Cour t. Expenditure Summary The following charts include actual division expenditures within the Administration Department for FY2023 through FY2025, and budgeted FY2026 and FY2027 division expenditures. Historical and Budgeted Expenditures Across Division Expenditures Actual Expenditures Over Budget Expenditures Budgeted FY2023 FY2024 FY2025 FY2026 FY2027 0 $100K $200K $300K $400K Table of ContentsLegal Services FY27 Proposed Budget | Fountain Hills Page 155Meeting Packet Page 158 of 295 Expenditures by Object The following charts include actual division expenditures within the Administration Department by Object for FY2023 through FY2025, and budgeted FY2026 and FY2027 division expenditures by Object. Historical and Budgeted Expenditures by Object Dues & Memberships Contractual Services FY27 Expenditures by Object Contractual Services $323,868 100.00% Category FY 2023 Actual FY 2024 Actual FY 2025 Actual FY 2026 Adopted Budget FY 2027 Proposed Budget FY 2026 Adopted Budget vs. FY 2027 Proposed Budget (% Change) Dues & Memberships $35 ----0.0% Dues, Subscript & Publicat $35 ----0.0% Contractual Services $295,023 $300,853 $315,835 $314,836 $323,868 2.9% Legal Fees $164,212 $163,800 $163,800 $168,800 $168,800 0.0% Prosecutor Fees $126,312 $135,153 $141,235 $141,236 $150,268 6.4% Public Defender Fees $4,500 $1,900 $10,800 $4,800 $4,800 0.0% Total Expenditures $295,058 $300,853 $315,835 $314,836 $323,868 2.9% $295K$295K $295K $301K$301K $301K $316K$316K $316K $315K$315K $315K $324K$324K $324K FY2023 FY2024 FY2025 FY2026 FY2027 0 $100K $200K $300K $400K 324K Expenditures by Object Table of ContentsLegal Services FY27 Proposed Budget | Fountain Hills Page 156Meeting Packet Page 159 of 295 The Legal Services Depar tment includes budgeted expenditures for Town Attorney, Town Prosecutor, and Municipal Court Public Defenders contractual services. The Town Attorney Legal Fees budgeted in the General Fund are displayed above, which represents 75% of the total Town Attorney contractual fees. The other 25% of legal fees are allocated to be spent out of the Streets Fund. The total legal services budgeted for Town Attorney contractual ser vices is $224 ,000 for FY2027, representing the contracted monthly rate plus  $8,000 of additional budget to cover any possible reimbursements or other unanticipated legal costs. Table of ContentsLegal Services FY27 Proposed Budget | Fountain Hills Page 157Meeting Packet Page 160 of 295 General Government The purpose of the General Government Department is to locate expenditures that are Town-wide and do not belong to any one department. Such expenditures as the community contracts, Town's membership dues in the Arizona League of Cities and Town, Maricopa Association of Governments, East Valley Partnership, and other Town-wide expenditures are located in the General Government Department. Terms such as General Government and Non- Departmental are commonly used in municipal budgeting to describe this type of cost center. Expenditure Summary The following charts include actual departmental expenditures for FY2023 through FY2025, and budgeted FY2026 and FY2027 departmental expenditures for this Department. Historical and Budgeted Expenditures Across Department Expenditures Actual Expenditures Budgeted FY2023 FY2024 FY2025 FY2026 FY2027 0 $1M $2M $3M $4M $5M $6M Table of ContentsGeneral Government FY27 Proposed Budget | Fountain Hills Page 158Meeting Packet Page 161 of 295 The General Government Department pays for central costs not specifically allocated to any individual department within the General Fund. For example, the Town's liability insurance in the General Fund is budgeted within this Department. The General Government Department is also home to the General Fund Contingency (aka "Wiggle Room").  To balance General Fund expenditures with ongoing projected revenues, Finance adds a Contingency budgeted expenditure line item that can be used in FY2027 for unforeseen and unplanned costs. If those costs arise, the Contingency budget is transferred to the appropriate budget within the General Fund, or sometimes to other funds.  That explains why the Town spends much less than budgeted within the General Government Department, as you can see from the chart above. Please review the charts below that show the Contingency budgeted amount for FY2026 and FY2027, with actual expenditures within this Department in prior years. For FY2027, the General Fund Contingency ("Wiggle Room") has been set at $1.0 million, about 11% less than the prior year. Expenditures by Object The following charts include actual departmental expenditures by Object for FY2023 through FY2025, and budgeted FY2026 and FY2027 departmental expenditures by Object for this Department. Historical and Budgeted Expenditures by Object Internal Service Equipment/Improvemen Meetings & Training Maintenance & Repair Supplies Utilities Dues & Memberships Contingency Contractual Services $617K$617K $617K $615K$615K $615K $588K$588K $588K $2M$2M$2M $2M$2M$2M FY2023 FY2024 FY2025 FY2026 FY2027 -$1M 0 $1M $2M Table of ContentsGeneral Government FY27 Proposed Budget | Fountain Hills Page 159Meeting Packet Page 162 of 295 FY27 Expenditures by Object Contingency $1,002,316 57.41% Contractual Services $659,835 37.80% Dues & Memberships $42,416 2.43% Utilities $26,488 1.52% Supplies $6,305 0.36% Maintenance & Repair $6,000 0.34% Meetings & Training $1,740 0.10% Internal Service $719 0.04% Category FY 2023 Actual FY 2024 Actual FY 2025 Actual FY 2026 Adopted Budget FY 2027 Proposed Budget FY 2026 Adopted Budget vs. FY 2027 Proposed Budget (% Change) Dues & Memberships $44,279 $46,299 $46,999 $41,710 $42,416 1.7% Meetings & Training -$54 -$1,740 $1,740 0.0% Maintenance & Repair $1,747 $2,601 $2,337 $6,000 $6,000 0.0% Utilities $20,523 $20,842 $21,065 $26,488 $26,488 0.0% Contractual Services $538,743 $537,067 $510,650 $696,458 $659,835 -5.3% Supplies $8,562 $7,154 $7,053 $6,305 $6,305 0.0% Equipment/Improvemen $3,024 ----0.0% Internal Service -$2,735 $1,296 -$5,551 -$719 - Contingency ---$1,121,243 $1,002,316 -10.6% Total Expenditures $614,144 $615,312 $582,553 $1,899,944 $1,745,819 -8.1% 1.75M Expenditures by Object Table of ContentsGeneral Government FY27 Proposed Budget | Fountain Hills Page 160Meeting Packet Page 163 of 295 Municipal Court The Fountain Hills Municipal Cour t is the judicial branch of the Fountain Hills government. Pursuant to State law and the Town Code, decisions regarding the overall function of the Court are the sole responsibility of the Presiding Judge, who also has exclusive supervisory authority over all court personnel. The Court has jurisdiction over civil traffic, criminal traffic and criminal misdemeanor offenses and violations of our Town Code and ordinances. The Court also has authority over specified juvenile offenses. In addition, the Municipal Court Presiding Judge has authority to issue arrest/search warrants, civil orders of protection, and injunctions against harassment. As part of the Arizona State Court System, the Fountain Hills Municipal Court is subject to the authority and administrative supervision of the Arizona Supreme Court. The Fountain Hills Municipal Court has legal obligations and reporting responsibilities to the State as well as to the Town of Fountain Hills. The Cour t must comply with constantly changing federal, state, and local laws and administrative rules, including those relating to crimes and criminal procedure, victims' rights, record keeping, ADA , minimum accounting standards and judicial ethics. Joanna Elliot Court Administrator Table of ContentsMunicipal Court FY27 Proposed Budget | Fountain Hills Page 161Meeting Packet Page 164 of 295 Expenditure Summary The following charts include actual departmental expenditures for FY2023 through FY2025, and budgeted FY2026 and FY2027 departmental expenditures for this Department. Historical and Budgeted Expenditures Across Department Expenditures by Object The following charts include actual departmental expenditures by Object for FY2023 through FY2025, and budgeted FY2026 and FY2027 departmental expenditures by Object for this Department. Historical and Budgeted Expenditures by Object Dues & Memberships Internal Service Meetings & Training Supplies Maintenance & Repair Equipment/Improvemen Contingency Contractual Services Payroll Expenses Expenditures Actual Expenditures Over Budget Expenditures Budgeted FY2023 FY2024 FY2025 FY2026 FY2027 0 $200K $400K $600K $800K $443K$443K $443K $497K$497K $497K $584K$584K $584K $626K$626K $626K $662K$662K $662K FY2023 FY2024 FY2025 FY2026 FY2027 0 $250K $500K $750K Table of ContentsMunicipal Court FY27 Proposed Budget | Fountain Hills Page 162Meeting Packet Page 165 of 295 FY27 Expenditures by Object Payroll Expenses $523,476 79.02% Contingency $50,000 7.55% Contractual Services $49,481 7.47% Equipment/Improvemen $12,760 1.93% Maintenance & Repair $10,010 1.51% Meetings & Training $8,405 1.27% Supplies $3,939 0.59% Internal Service $3,671 0.55% Dues & Memberships $677 0.10% Category FY 2023 Actual FY 2024 Actual FY 2025 Actual FY 2026 Adopted Budget FY 2027 Proposed Budget FY 2026 Adopted Budget vs. FY 2027 Proposed Budget (% Change) Payroll Expenses $393,147 $448,622 $493,793 $503,275 $523,476 4.0% General Fund $393,147 $448,622 $493,793 $503,275 $523,476 4.0% Dues & Memberships $2,716 $764 $685 $677 $677 0.0% General Fund $2,716 $764 $685 $677 $677 0.0% Meetings & Training $1,232 $2,815 $2,578 $8,405 $8,405 0.0% General Fund $1,232 $2,815 $2,578 $8,405 $8,405 0.0% Maintenance & Repair $2,610 $15,339 $19,302 $10,010 $10,010 0.0% General Fund $2,521 $10,339 $6,113 $10,010 $10,010 0.0% Court Enhancement Fund $89 $5,000 $13,189 --0.0% Contractual Services $11,390 $16,956 $20,681 $43,481 $49,481 13.8% General Fund $11,390 $16,956 $18,587 $18,481 $24,481 32.5% Court Enhancement Fund --$2,095 $25,000 $25,000 0.0% Supplies $5,660 $5,701 $6,448 $3,939 $3,939 0.0% General Fund $5,660 $5,701 $6,448 $3,939 $3,939 0.0% Equipment/Improvemen $21,651 $3,143 $36,825 $2,760 $12,760 362.3% General Fund $5,812 $3,143 $2,022 $260 $260 0.0% Court Enhancement Fund $15,840 -$34,803 $2,500 $12,500 400.0% Internal Service $4,292 $3,476 $3,572 $3,922 $3,671 -6.4% General Fund $4,292 $3,476 $3,572 $3,922 $3,671 -6.4% Contingency ---$50,000 $50,000 0.0% Court Enhancement Fund ---$50,000 $50,000 0.0% 662K Expenditures by Object Table of ContentsMunicipal Court FY27 Proposed Budget | Fountain Hills Page 163Meeting Packet Page 166 of 295 Category FY 2023 Actual FY 2024 Actual FY 2025 Actual FY 2026 Adopted Budget FY 2027 Proposed Budget FY 2026 Adopted Budget vs. FY 2027 Proposed Budget (% Change) Total Expenditures $442,699 $496,817 $583,884 $626,469 $662,419 5.7% Table of ContentsMunicipal Court FY27 Proposed Budget | Fountain Hills Page 164Meeting Packet Page 167 of 295 Public Works The Public Works Depar tment is dedicated to enhancing the quality of life in Fountain Hills by ensuring the construction of quality infrastructure; maintenance of roadways and traffic control devices; maintenance of Town- owned washes, dams, medians and open space; and maintenance of Town facilities in a manner that provides a safe, healthy and secure environment for staff and visitors. The Department strives to provide quality customer service in a professional and timely manner. Justin Weldy Public Works Director Table of ContentsPublic Works FY27 Proposed Budget | Fountain Hills Page 165Meeting Packet Page 168 of 295 Expenditure Summary The following charts include actual departmental expenditures for FY2023 through FY2025, and budgeted FY2026 and FY2027 departmental expenditures for this Department. Historical and Budgeted Expenditures Across Department Expenditures by Fund The following charts include actual departmental expenditures by Fund for FY2023 through FY2025, and budgeted FY2026 and FY2027 departmental expenditures by Fund for this Department. Historical and Budgeted Expenditures by Fund Special Revenue Fund Environmental Fund General Fund Streets Fund Expenditures Actual Expenditures Over Budget Expenditures Budgeted FY2023 FY2024 FY2025 FY2026 FY2027 0 $3M $5M $8M $10M $13M $7M$7M $7M $8M$8M $8M $9M$9M$9M $10M$10M $10M $11M$11M$11M FY2023 FY2024 FY2025 FY2026 FY2027 0 $5M $10M $15M Table of ContentsPublic Works FY27 Proposed Budget | Fountain Hills Page 166Meeting Packet Page 169 of 295 FY27 Expenditures by Fund Streets Fund $8,269,842 76.67% General Fund $2,516,325 23.33% Category FY 2023 Actual FY 2024 Actual FY 2025 Actual FY 2026 Adopted Budget FY 2027 Proposed Budget FY 2026 Adopted Budget vs. FY 2027 Proposed Budget (% Change) General Fund $1,336,419 $1,572,310 $1,678,837 $2,488,886 $2,516,325 1.1% Streets Fund $5,054,003 $6,311,022 $7,286,475 $7,244,627 $8,269,842 14.2% Special Revenue Fund --$14,670 --- Environmental Fund $386,571 $563,758 $379,776 --0.0% Total Expenditures $6,776,993 $8,447,090 $9,359,758 $9,733,513 $10,786,167 10.8% 10.8M Expenditures by Fund Table of ContentsPublic Works FY27 Proposed Budget | Fountain Hills Page 167Meeting Packet Page 170 of 295 Expenditures by Object The following charts include actual departmental expenditures by Object for FY2023 through FY2025, and budgeted FY2026 and FY2027 departmental expenditures by Object for this Department. Historical and Budgeted Expenditures by Object Meetings & Training Dues & Memberships Equipment/Improvemen Damages/Vandalism Contingency Supplies Capital Expenditures Internal Service Utilities Contractual Services Payroll Expenses Maintenance & Repair FY27 Expenditures by Object Maintenance & Repair $7,124,882 66.06% Payroll Expenses $1,729,505 16.03% Contractual Services $1,211,004 11.23% Utilities $344,979 3.20% Internal Service $112,514 1.04% Contingency $100,000 0.93% Supplies $60,368 0.56% Damages/Vandalism $50,900 0.47% Equipment/Improvemen $21,850 0.20% Dues & Memberships $20,975 0.19% Meetings & Training $9,190 0.09% $7M$7M$7M $8M$8M $8M $9M$9M $9M $10M$10M$10M $11M$11M $11M FY2023 FY2024 FY2025 FY2026 FY2027 0 $5M $10M $15M 10.8M Table of ContentsPublic Works FY27 Proposed Budget | Fountain Hills Page 168Meeting Packet Page 171 of 295 Category FY 2023 Actual FY 2024 Actual FY 2025 Actual FY 2026 Adopted Budget FY 2027 Proposed Budget FY 2026 Adopted Budget vs. FY 2027 Proposed Budget (% Change) Payroll Expenses $1,274,009 $1,471,945 $1,599,889 $1,716,974 $1,729,505 0.7% Dues & Memberships $12,751 $16,027 $18,143 $20,975 $20,975 0.0% Meetings & Training $2,527 $2,366 $3,876 $9,190 $9,190 0.0% Maintenance & Repair $3,897,919 $5,243,250 $6,247,126 $6,124,882 $7,124,882 16.3% Utilities $398,666 $408,989 $395,957 $339,809 $344,979 1.5% Contractual Services $953,976 $870,873 $839,927 $1,201,271 $1,211,004 0.8% Supplies $35,693 $28,404 $30,563 $60,368 $60,368 0.0% Equipment/Improvemen $41,161 $29,660 $33,133 $21,850 $21,850 0.0% Damages/Vandalism $38,924 $16,791 $31,575 $50,900 $50,900 0.0% Internal Service $82,499 $86,306 $93,195 $87,294 $112,514 28.9% Contingency ---$100,000 $100,000 0.0% Capital Expenditures $38,869 $272,478 $66,373 --0.0% Total Expenditures $6,776,993 $8,447,090 $9,359,758 $9,733,513 $10,786,167 10.8% Expenditures by Division The following charts include actual division expenditures within the Public Works Department for FY2023 through FY2025, and budgeted FY2026 and FY2027 division expenditures for this Department. Historical and Budgeted Expenditures by Division Environmental Engineering Public Works Facilities Maintenance Streets Expenditures by Object $7M$7M$7M $8M$8M $8M $9M$9M $9M $10M$10M$10M $11M$11M $11M FY2023 FY2024 FY2025 FY2026 FY2027 0 $5M $10M $15M Table of ContentsPublic Works FY27 Proposed Budget | Fountain Hills Page 169Meeting Packet Page 172 of 295 FY27 Expenditures by Division Streets $8,269,842 76.67% Facilities Maintenance $1,085,768 10.07% Public Works $1,001,222 9.28% Engineering $429,335 3.98% Category FY 2023 Actual FY 2024 Actual FY 2025 Actual FY 2026 Adopted Budget FY 2027 Proposed Budget FY 2026 Adopted Budget vs. FY 2027 Proposed Budget (% Change) Public Works $163,184 $183,362 $363,525 $998,171 $1,001,222 0.3% Payroll Expenses $141,919 $161,343 $182,032 $174,294 $174,970 0.4% Dues & Memberships $34 -$1,387 $10,585 $10,585 0.0% Meetings & Training --$50 $3,340 $3,340 0.0% Maintenance & Repair $4,133 $432 $146,636 $539,760 $539,760 0.0% Utilities $4,132 $3,200 $2,706 $3,716 $3,716 0.0% Contractual Services $3,189 $6,948 $5,750 $244,720 $244,720 0.0% Supplies $573 $140 $1,174 $1,345 $1,345 0.0% Equipment/Improvemen $996 $1,514 $14,178 $450 $450 0.0% Damages/Vandalism ---$10,000 $10,000 0.0% Internal Service $8,208 $9,784 $9,612 $9,961 $12,336 23.8% Engineering $314,872 $379,008 $349,404 $417,667 $429,335 2.8% Payroll Expenses $287,820 $317,039 $332,378 $350,559 $362,961 3.5% Dues & Memberships $1,757 $1,035 $1,639 $2,390 $2,390 0.0% Meetings & Training $2,117 $1,981 $3,226 $2,350 $2,350 0.0% Maintenance & Repair $420 $738 $474 --0.0% Utilities ---$1,560 $1,560 0.0% Contractual Services $18,573 $56,275 $8,033 $56,950 $56,950 0.0% Supplies $254 $177 $276 $800 $800 0.0% Equipment/Improvemen $896 -$611 --0.0% Internal Service $3,035 $1,764 $2,765 $3,058 $2,324 -24.0% Streets $5,054,003 $6,311,022 $7,286,475 $7,244,627 $8,269,842 14.2% Payroll Expenses $570,144 $658,659 $729,998 $816,489 $811,489 -0.6% Dues & Memberships $1,810 $3,127 $1,315 $8,000 $8,000 0.0% Meetings & Training $410 $385 $600 $2,000 $2,000 0.0% Maintenance & Repair $3,465,658 $4,714,716 $5,631,540 $5,320,910 $6,320,910 18.8% 10.8M Expenditures by Division Table of ContentsPublic Works FY27 Proposed Budget | Fountain Hills Page 170Meeting Packet Page 173 of 295 Category FY 2023 Actual FY 2024 Actual FY 2025 Actual FY 2026 Adopted Budget FY 2027 Proposed Budget FY 2026 Adopted Budget vs. FY 2027 Proposed Budget (% Change) Utilities $158,079 $144,904 $145,660 $146,352 $146,923 0.4% Contractual Services $689,650 $559,452 $591,518 $704,190 $713,923 1.4% Supplies $16,953 $14,999 $12,568 $22,620 $22,620 0.0% Equipment/Improvemen $24,060 $15,042 $5,627 $16,500 $16,500 0.0% Damages/Vandalism $38,690 $16,778 $31,575 $40,000 $40,000 0.0% Internal Service $62,872 $67,266 $69,699 $67,566 $87,477 29.5% Contingency ---$100,000 $100,000 0.0% Capital Expenditures $25,676 $115,695 $66,373 --0.0% Facilities Maintenance $858,363 $1,009,941 $980,579 $1,073,048 $1,085,768 1.2% Payroll Expenses $274,125 $334,905 $355,480 $375,632 $380,085 1.2% Dues & Memberships --$2,693 --0.0% Meetings & Training ---$1,500 $1,500 0.0% Maintenance & Repair $176,766 $217,250 $205,419 $264,212 $264,212 0.0% Utilities $236,455 $260,578 $247,592 $188,181 $192,780 2.4% Contractual Services $118,103 $150,703 $130,788 $195,411 $195,411 0.0% Supplies $17,912 $13,002 $16,495 $35,603 $35,603 0.0% Equipment/Improvemen $15,209 $8,347 $12,716 $4,900 $4,900 0.0% Damages/Vandalism ---$900 $900 0.0% Internal Service $6,599 $5,772 $9,397 $6,709 $10,377 54.7% Capital Expenditures $13,193 $19,384 ---0.0% Environmental $386,571 $563,758 $379,776 --0.0% Dues & Memberships $9,150 $11,865 $11,110 --0.0% Maintenance & Repair $250,942 $310,114 $263,057 --0.0% Utilities -$306 ---0.0% Contractual Services $124,461 $97,495 $103,837 --0.0% Supplies -$87 $50 --0.0% Equipment/Improvemen -$4,756 ---0.0% Damages/Vandalism $233 $14 ---0.0% Internal Service $1,785 $1,722 $1,722 --0.0% Capital Expenditures -$137,399 ---0.0% Total Expenditures $6,776,993 $8,447,090 $9,359,758 $9,733,513 $10,786,167 10.8% Within the $6.3 million budgeted in the Streets Division for maintenance and repair, $6 million of that is specifically budgeted for the Pavement Management Program in FY2027, an increase of $1 million from the prior year. This will provide the Town Council additional options and budget authority for additional roadwork during the fiscal year. Table of ContentsPublic Works FY27 Proposed Budget | Fountain Hills Page 171Meeting Packet Page 174 of 295 Development Ser vices The Development Services Department is dedicated to enhancing the quality of life in Fountain Hills by providing plan review, construction permitting, building inspections, code enforcement, and Geographic Information Systems, as well as the use of innovative and proven land planning techniques. The Depar tment strives to provide quality customer service in a professional and timely manner. John Wesley Development Services Director Table of ContentsDevelopment Services FY27 Proposed Budget | Fountain Hills Page 172Meeting Packet Page 175 of 295 Expenditure Summary The following charts include actual departmental expenditures for FY2023 through FY2025, and budgeted FY2026 and FY2027 departmental expenditures for this Department. Historical and Budgeted Expenditures Across Department Expenditures Actual Expenditures Budgeted FY2023 FY2024 FY2025 FY2026 FY2027 0 $500K $1,000K $1,500K $2,000K Table of ContentsDevelopment Services FY27 Proposed Budget | Fountain Hills Page 173Meeting Packet Page 176 of 295 Expenditures by Object The following charts include actual departmental expenditures by Object for FY2023 through FY2025, and budgeted FY2026 and FY2027 departmental expenditures by Object for this Department. Historical and Budgeted Expenditures by Object Equipment/Improvemen Dues & Memberships Supplies Utilities Capital Expenditures Meetings & Training Internal Service Contingency Maintenance & Repair Contractual Services Payroll Expenses FY27 Expenditures by Object Payroll Expenses $1,292,499 82.38% Contractual Services $70,574 4.50% Contingency $70,000 4.46% Maintenance & Repair $54,912 3.50% Internal Service $32,122 2.05% Meetings & Training $19,230 1.23% Supplies $11,260 0.72% Utilities $9,132 0.58% Dues & Memberships $6,334 0.40% Equipment/Improvemen $2,800 0.18% $1M$1M$1M $1M$1M$1M $1M$1M$1M $2M$2M$2M $2M$2M$2M FY2023 FY2024 FY2025 FY2026 FY2027 0 $500K $1,000K $1,500K $2,000K 1.57M Table of ContentsDevelopment Services FY27 Proposed Budget | Fountain Hills Page 174Meeting Packet Page 177 of 295 Category FY 2023 Actual FY 2024 Actual FY 2025 Actual FY 2026 Adopted Budget FY 2027 Proposed Budget FY 2026 Adopted Budget vs. FY 2027 Proposed Budget (% Change) Payroll Expenses $993,849 $1,067,983 $1,218,681 $1,241,103 $1,292,499 4.1% Dues & Memberships $3,199 $2,545 $6,654 $5,999 $6,334 5.6% Meetings & Training $3,660 $1,766 $4,174 $19,230 $19,230 0.0% Maintenance & Repair $40,375 $50,187 $46,895 $51,912 $54,912 5.8% Utilities $9,100 $7,557 $9,050 $9,132 $9,132 0.0% Contractual Services $147,851 $120,853 $30,853 $70,574 $70,574 0.0% Supplies $2,926 $3,278 $3,722 $11,260 $11,260 0.0% Equipment/Improvemen $774 $2,631 $725 $2,800 $2,800 0.0% Internal Service $19,966 $18,521 $24,111 $20,503 $32,122 56.7% Contingency ---$100,000 $70,000 -30.0% Capital Expenditures --$47,907 --0.0% Total Expenditures $1,221,700 $1,275,320 $1,392,773 $1,532,513 $1,568,863 2.4% Expenditures by Division The following charts include actual division expenditures within the Development Services Department by Object for FY2023 through FY2025, and budgeted FY2026 and FY2027 division expenditures for this Department. Historical and Budgeted Expenditures by Division Mapping & Graphics Planning Code Compliance Development Services Building Safety Expenditures by Object $1M$1M$1M $1M$1M$1M $1M$1M$1M $2M$2M$2M $2M$2M$2M FY2023 FY2024 FY2025 FY2026 FY2027 0 $500K $1,000K $1,500K $2,000K Table of ContentsDevelopment Services FY27 Proposed Budget | Fountain Hills Page 175Meeting Packet Page 178 of 295 FY27 Expenditures by Division Building Safety $615,172 39.21% Development Services $390,139 24.87% Code Compliance $263,662 16.81% Planning $151,080 9.63% Mapping & Graphics $148,810 9.49% Category FY 2023 Actual FY 2024 Actual FY 2025 Actual FY 2026 Adopted Budget FY 2027 Proposed Budget FY 2026 Adopted Budget vs. FY 2027 Budgeted (% Change) Development Services $260,725 $283,692 $287,108 $413,256 $390,139 -5.6% Payroll Expenses $190,070 $211,029 $221,677 $234,455 $241,476 3.0% Dues & Memberships $950 $926 $926 $1,086 $1,086 0.0% Meetings & Training $560 $182 -$4,100 $4,100 0.0% Maintenance & Repair $36,473 $44,483 $38,524 $45,200 $45,200 0.0% Utilities $2,195 $1,920 $1,760 --0.0% Contractual Services $27,298 $22,297 $21,947 $21,524 $21,524 0.0% Supplies $850 $1,370 $727 $5,105 $5,105 0.0% Equipment/Improvemen $435 $21 $15 --0.0% Internal Service $1,894 $1,464 $1,531 $1,786 $1,648 -7.7% Contingency ---$100,000 $70,000 -30.0% Planning $121,843 $133,725 $139,047 $153,379 $151,080 -1.5% Payroll Expenses $115,827 $127,116 $129,221 $139,751 $138,069 -1.2% Dues & Memberships $1,329 $1,419 $1,595 $2,213 $2,213 0.0% Meetings & Training $15 $425 $1,416 $4,600 $4,600 0.0% Contractual Services $2,640 $3,694 $5,317 $4,850 $4,850 0.0% Supplies $601 $277 $273 $345 $345 0.0% Equipment/Improvemen ---$100 $100 0.0% Internal Service $1,431 $794 $1,225 $1,520 $903 -40.6% Building Safety $502,393 $521,678 $614,478 $580,764 $615,172 5.9% Payroll Expenses $377,123 $418,345 $540,847 $529,306 $554,469 4.8% Dues & Memberships $615 $200 $4,033 $2,380 $2,715 14.1% Meetings & Training $1,635 $1,159 $2,183 $4,730 $4,730 0.0% Maintenance & Repair $113 $3,736 $5,961 $1,092 $1,092 0.0% Utilities $1,967 $1,974 $2,645 $2,980 $2,980 0.0% Contractual Services $113,384 $89,174 $158 $31,000 $31,000 0.0% 1.57M Expenditures by Division Table of ContentsDevelopment Services FY27 Proposed Budget | Fountain Hills Page 176Meeting Packet Page 179 of 295 Category FY 2023 Actual FY 2024 Actual FY 2025 Actual FY 2026 Adopted Budget FY 2027 Proposed Budget FY 2026 Adopted Budget vs. FY 2027 Budgeted (% Change) Supplies $309 $158 $533 $1,480 $1,480 0.0% Equipment/Improvemen $311 $28 $710 $200 $200 0.0% Internal Service $6,937 $6,903 $9,501 $7,596 $16,506 117.3% Capital Expenditures --$47,907 --0.0% Code Compliance $229,796 $219,500 $229,633 $242,301 $263,662 8.8% Payroll Expenses $211,182 $201,523 $211,888 $217,213 $235,110 8.2% Dues & Memberships $305 -$100 $320 $320 0.0% Meetings & Training $1,450 -$575 $2,300 $2,300 0.0% Maintenance & Repair $2,071 $485 $342 $1,120 $1,120 0.0% Utilities $4,938 $3,662 $4,645 $6,152 $6,152 0.0% Contractual Services $182 $2,400 $166 $3,200 $3,200 0.0% Supplies $828 $239 $800 $730 $730 0.0% Equipment/Improvemen $28 $2,582 -$2,500 $2,500 0.0% Internal Service $8,811 $8,609 $11,116 $8,766 $12,230 39.5% Mapping & Graphics $106,943 $116,725 $122,507 $142,813 $148,810 4.2% Payroll Expenses $99,647 $109,970 $115,047 $120,378 $123,375 2.5% Meetings & Training ---$3,500 $3,500 0.0% Maintenance & Repair $1,719 $1,483 $2,068 $4,500 $7,500 66.7% Contractual Services $4,346 $3,288 $3,264 $10,000 $10,000 0.0% Supplies $339 $1,233 $1,390 $3,600 $3,600 0.0% Internal Service $893 $751 $738 $835 $835 0.0% Total Expenditures $1,221,700 $1,275,320 $1,392,773 $1,532,513 $1,568,863 2.4% Table of ContentsDevelopment Services FY27 Proposed Budget | Fountain Hills Page 177Meeting Packet Page 180 of 295 Community Services The mission of the Community Services Department is to provide exceptional customer service to enhance the quality of life by providing and maintaining safe, available, and accessible parks and facilities, recreation programs, events, and services that will meet the intellectual, social, cultural, and leisure needs of all residents. Kevin Snipes Community Services Director Table of ContentsCommunity Services FY27 Proposed Budget | Fountain Hills Page 178Meeting Packet Page 181 of 295 Expenditure Summary The following charts include actual departmental expenditures for FY2023 through FY2025, and budgeted FY2026 and FY2027 departmental expenditures for this Department. Historical and Budgeted Expenditures Across Department Expenditures by Fund The following charts include actual departmental expenditures by Fund for FY2023 through FY2025, and budgeted FY2026 and FY2027 departmental expenditures by Fund for this Department. Historical and Budgeted Expenditures by Fund Public Art Fund General Fund Expenditures Actual Expenditures Budgeted FY2023 FY2024 FY2025 FY2026 FY2027 0 $1M $2M $3M $4M $5M $3M$3M$3M $4M$4M $4M $4M$4M $4M $4M$4M $4M $5M$5M $5M FY2023 FY2024 FY2025 FY2026 FY2027 0 $2M $4M $6M Table of ContentsCommunity Services FY27 Proposed Budget | Fountain Hills Page 179Meeting Packet Page 182 of 295 FY27 Expenditures by Fund General Fund $4,580,916 99.07% Public Art Fund $42,777 0.93% Category FY 2023 Actual FY 2024 Actual FY 2025 Actual FY 2026 Adopted Budget FY 2027 Proposed Budget FY 2026 Adopted Budget vs. FY 2027 Proposed Budget (% Change) General Fund $3,303,757.79 $3,487,932.58 $3,932,654.61 $4,427,565.00 $4,580,916.00 3.46% Public Art Fund $23,756.49 $31,463.59 $33,193.67 $40,214.00 $42,777.00 6.37% Total Expenditures $3,327,514.28 $3,519,396.17 $3,965,848.28 $4,467,779.00 $4,623,693.00 3.49% Expenditures by Object The following charts include actual departmental expenditures by Object for FY2023 through FY2025, and budgeted FY2026 and FY2027 departmental expenditures by Object for this Department. Historical and Budgeted Expenditures by Object Damages/Vandalism Dues & Memberships Contingency Meetings & Training Capital Expenditures Equipment/Improvemen Internal Service Supplies Utilities Maintenance & Repair Contractual Services Payroll Expenses 4 .62M Expenditures by Fund $3M$3M$3M $4M$4M $4M $4M$4M $4M $4M$4M $4M $5M$5M $5M FY2023 FY2024 FY2025 FY2026 FY2027 0 $2M $4M $6M Table of ContentsCommunity Services FY27 Proposed Budget | Fountain Hills Page 180Meeting Packet Page 183 of 295 FY27 Expenditures by Object Payroll Expenses $2,389,203 51.67% Contractual Services $965,553 20.88% Maintenance & Repair $434,027 9.39% Utilities $397,985 8.61% Supplies $272,961 5.90% Internal Service $84,007 1.82% Contingency $35,000 0.76% Meetings & Training $23,987 0.52% Equipment/Improvemen $12,250 0.26% Dues & Memberships $5,970 0.13% Damages/Vandalism $2,750 0.06% Category FY 2023 Actual FY 2024 Actual FY 2025 Actual FY 2026 Adopted Budget FY 2027 Proposed Budget FY 2026 Adopted Budget vs. FY 2027 Proposed Budget (% Change) Payroll Expenses $1,667,818 $1,828,329 $2,005,552 $2,246,822 $2,389,203 6.3% Dues & Memberships $5,436 $6,895 $4,678 $6,020 $5,970 -0.8% Meetings & Training $18,028 $13,757 $17,887 $28,987 $23,987 -17.2% Maintenance & Repair $308,724 $335,040 $516,688 $469,772 $434,027 -7.6% Utilities $337,342 $366,999 $368,916 $391,355 $397,985 1.7% Contractual Services $541,187 $607,874 $681,446 $912,690 $965,553 5.8% Supplies $188,222 $203,109 $223,646 $276,516 $272,961 -1.3% Equipment/Improvemen $106,851 $51,911 $46,793 $21,050 $12,250 -41.8% Damages/Vandalism $3,532 $727 $8,130 $2,100 $2,750 31.0% Internal Service $72,463 $76,384 $77,554 $77,467 $84,007 8.4% Contingency ---$35,000 $35,000 0.0% Capital Expenditures $77,910 $28,371 $14,558 --0.0% Total Expenditures $3,327,514 $3,519,396 $3,965,848 $4,467,779 $4,623,693 3.5% 4 .62M Expenditures by Object Table of ContentsCommunity Services FY27 Proposed Budget | Fountain Hills Page 181Meeting Packet Page 184 of 295 Expenditures by Division The following charts include actual division expenditures within the Community Services Department for FY2023 through FY2025, and budgeted FY2026 and FY2027 division expenditures for this Department. Historical and Budgeted Expenditures by Division Senior Services Comm Ctr Operations Community Services Recreation Parks FY27 Expenditures by Division Parks $2,112,312 45.68% Recreation $1,178,577 25.49% Community Services $622,761 13.47% Comm Ctr Operations $519,512 11.24% Senior Services $190,531 4.12% Category FY 2023 Actual FY 2024 Actual FY 2025 Actual FY 2026 Adopted Budget FY 2027 Proposed Budget FY 2026 Adopted Budget vs. FY 2027 Proposed Budget (% Change) Community Services $387,644 $500,451 $524,889 $613,386 $622,761 1.5% Payroll Expenses $317,418 $387,278 $408,341 $435,915 $441,138 1.2% Dues & Memberships $2,675 $1,805 $1,870 $50 -- Meetings & Training $8,015 $3,745 $7,434 $10,050 $10,050 0.0% $3M$3M$3M $4M$4M $4M $4M$4M $4M $4M$4M $4M $5M$5M $5M FY2023 FY2024 FY2025 FY2026 FY2027 0 $2M $4M $6M 4 .62M Expenditures by Division Table of ContentsCommunity Services FY27 Proposed Budget | Fountain Hills Page 182Meeting Packet Page 185 of 295 Category FY 2023 Actual FY 2024 Actual FY 2025 Actual FY 2026 Adopted Budget FY 2027 Proposed Budget FY 2026 Adopted Budget vs. FY 2027 Proposed Budget (% Change) Maintenance & Repair $1,879 $23,807 $13,059 $11,220 $11,220 0.0% Utilities $1,997 $1,069 $1,175 $600 $600 0.0% Contractual Services $32,588 $57,246 $58,372 $118,518 $120,518 1.7% Supplies $17,247 $18,668 $24,805 $20,915 $22,765 8.8% Equipment/Improvemen $220 $905 $3,896 --0.0% Internal Service $5,604 $5,927 $5,937 $6,118 $6,470 5.8% Contingency ---$10,000 $10,000 0.0% Recreation $762,708 $859,662 $917,692 $1,102,954 $1,178,577 6.9% Payroll Expenses $403,166 $463,187 $483,073 $577,760 $602,734 4.3% Dues & Memberships $731 $515 $686 $2,792 $2,792 0.0% Meetings & Training $4,289 $5,861 $8,228 $11,475 $6,475 -43.6% Maintenance & Repair $26,308 $35,421 $38,979 $29,500 $34,500 16.9% Utilities $8,238 $7,712 $7,355 $6,860 $6,660 -2.9% Contractual Services $218,747 $243,726 $274,420 $344,049 $394,912 14.8% Supplies $89,221 $89,367 $97,303 $99,045 $99,045 0.0% Equipment/Improvemen $6,164 $8,224 $1,416 $350 $350 0.0% Internal Service $5,844 $5,649 $6,232 $6,123 $6,109 -0.2% Contingency ---$25,000 $25,000 0.0% Parks $1,584,907 $1,565,090 $1,898,809 $2,060,593 $2,112,312 2.5% Payroll Expenses $458,128 $460,360 $566,235 $631,513 $720,250 14.1% Dues & Memberships $755 $3,403 $968 $1,370 $1,370 0.0% Meetings & Training $3,417 $3,250 $2,225 $5,912 $5,912 0.0% Maintenance & Repair $277,505 $272,593 $461,225 $422,992 $382,247 -9.6% Utilities $326,078 $357,262 $359,277 $381,135 $387,965 1.8% Contractual Services $286,364 $291,219 $326,525 $417,274 $417,274 0.0% Supplies $69,908 $84,639 $88,301 $135,110 $124,055 -8.2% Equipment/Improvemen $26,904 $24,842 $26,624 $4,500 $5,700 26.7% Damages/Vandalism $3,532 $727 $8,130 $2,100 $2,750 31.0% Internal Service $54,406 $58,424 $59,300 $58,687 $64,789 10.4% Capital Expenditures $77,910 $8,371 ---0.0% Comm Ctr Operations $424,657 $448,491 $453,837 $511,300 $519,512 1.6% Payroll Expenses $336,609 $394,168 $408,709 $453,387 $470,867 3.9% Dues & Memberships $890 $762 $676 $1,102 $1,102 0.0% Meetings & Training $107 $450 -$1,400 $1,400 0.0% Maintenance & Repair $2,934 $3,219 $3,425 $5,860 $5,860 0.0% Utilities $1,030 $956 $1,109 $2,760 $2,760 0.0% Contractual Services $1,342 $4,272 $1,174 $12,470 $12,470 0.0% Supplies $5,411 $4,521 $5,307 $14,836 $15,486 4.4% Equipment/Improvemen $71,846 $15,731 $14,662 $15,000 $5,000 -66.7% Internal Service $4,488 $4,412 $4,219 $4,485 $4,567 1.8% Capital Expenditures -$20,000 $14,558 --0.0% Senior Services $167,598 $145,703 $170,622 $179,546 $190,531 6.1% Payroll Expenses $152,497 $123,336 $139,196 $148,247 $154,214 4.0% Dues & Memberships $385 $410 $478 $706 $706 0.0% Meetings & Training $2,199 $450 -$150 $150 0.0% Maintenance & Repair $98 --$200 $200 0.0% Table of ContentsCommunity Services FY27 Proposed Budget | Fountain Hills Page 183Meeting Packet Page 186 of 295 Category FY 2023 Actual FY 2024 Actual FY 2025 Actual FY 2026 Adopted Budget FY 2027 Proposed Budget FY 2026 Adopted Budget vs. FY 2027 Proposed Budget (% Change) Contractual Services $2,147 $11,411 $20,955 $20,379 $20,379 0.0% Supplies $6,435 $5,914 $7,930 $6,610 $11,610 75.6% Equipment/Improvemen $1,717 $2,210 $196 $1,200 $1,200 0.0% Internal Service $2,121 $1,972 $1,867 $2,054 $2,072 0.9% Total Expenditures $3,327,514 $3,519,396 $3,965,848 $4,467,779 $4,623,693 3.5% Table of ContentsCommunity Services FY27 Proposed Budget | Fountain Hills Page 184Meeting Packet Page 187 of 295 Fire and Emergency Medical Ser vices The Fire Department is responsible for EMS delivery and fire suppression within the Town limits. The Fire Depar tment is also responsible for fire prevention that includes plan review and building inspections. The Fire Department takes the lead role in emergency management and the Fire Chief serves as the Emergency Manager for the Town. The Fire Department also provides other community services such as public education, CPR classes, child safety seat checks and other safety programs.  Dave Ott Fire Chief Table of ContentsFire and Emergency Medical Services FY27 Proposed Budget | Fountain Hills Page 185Meeting Packet Page 188 of 295 Expenditure Summary The Fire Department's FY2027 proposed budget includes a personnel supplement request of about $127K to add another firefighter and additional budgeted expenditures for a full-year of a revised command structure including 3 Battalion Chief positions. These changes will enhance the Fire Department's ongoing application for automatic aid status with surrounding jurisdictions.  Historical and Budgeted Expenditures Across Department FY2023 expenditures appear much lower than budgeted. However, this is because the Town paid for most of the Fire Department's contracted services (contracted with Rural Metro in FY2023) using Federal grant monies (American Rescue Plan funding) from the Special Revenue Fund. Expenditures Actual Expenditures Budgeted FY2023 FY2024 FY2025 FY2026 FY2027 0 $2M $4M $6M $8M Table of ContentsFire and Emergency Medical Services FY27 Proposed Budget | Fountain Hills Page 186Meeting Packet Page 189 of 295 Expenditures by Object The following charts include actual departmental expenditures by Object for FY2023 through FY2025, and budgeted FY2026 and FY2027 departmental expenditures by Object for this Department. Historical and Budgeted Expenditures by Object Dues & Memberships Meetings & Training Contingency Capital Expenditures Supplies Utilities Maintenance & Repair Equipment/Improvemen Internal Service Contractual Services Payroll Expenses FY2023 expenditures appear much lower than other years. However, this is because the Town paid for most of the Fire Department's contracted services (contracted with Rural Metro in FY2023) using Federal grant monies (American Rescue Plan funding). FY27 Expenditures by Object Payroll Expenses $5,158,528 79.63% Contractual Services $345,040 5.33% Internal Service $273,355 4.22% Equipment/Improvemen $216,600 3.34% Utilities $132,889 2.05% Maintenance & Repair $123,110 1.90% Contingency $120,000 1.85% Supplies $74,355 1.15% Meetings & Training $25,200 0.39% Dues & Memberships $8,700 0.13% $1M$1M$1M $5M$5M $5M $5M$5M $5M $6M$6M $6M $6M$6M $6M FY2023 FY2024 FY2025 FY2026 FY2027 0 $3M $5M $8M 6.48M Table of ContentsFire and Emergency Medical Services FY27 Proposed Budget | Fountain Hills Page 187Meeting Packet Page 190 of 295 Category FY 2023 Actual FY 2024 Actual FY 2025 Actual FY 2026 Adopted Budget FY 2027 Proposed Budget FY 2026 Adopted Budget vs. FY 2027 Proposed Budget (% Change) Payroll Expenses -$2,068,046 $4,169,537 $4,709,487 $5,158,528 9.5% Dues & Memberships $500 $920 $4,222 $8,700 $8,700 0.0% Meetings & Training $1,940 $7,248 $7,724 $20,200 $25,200 24.8% Maintenance & Repair $40,045 $136,433 $163,701 $123,110 $123,110 0.0% Utilities $48,635 $85,813 $113,726 $105,979 $132,889 25.4% Contractual Services $705,152 $2,172,999 $279,266 $345,040 $345,040 0.0% Supplies $11,149 $66,315 $78,110 $72,855 $74,355 2.1% Equipment/Improvemen $21,561 $351,885 $79,066 $210,500 $216,600 2.9% Internal Service $205,262 $214,115 $204,114 $220,713 $273,355 23.9% Contingency ---$150,000 $120,000 -20.0% Capital Expenditures $56,945 $141,681 $85,510 --0.0% Total Expenditures $1,091,189 $5,245,457 $5,184,975 $5,966,584 $6,477,777 8.6% FY2023 expenditures appear much lower than other years. However, this is because the Town paid for most of the Fire Department's contracted services (contracted with Rural Metro in FY2023) using Federal grant monies (American Rescue Plan funding). Expenditures by Object Table of ContentsFire and Emergency Medical Services FY27 Proposed Budget | Fountain Hills Page 188Meeting Packet Page 191 of 295 Law Enforcement The Maricopa County Sheriff's Office is a fully integrated law enforcement agency committed to being the leader in establishing the standards for providing quality law enforcement, detention and support services to the citizens of Maricopa County and to other criminal justice agencies. Expenditure Summary The following charts include actual departmental expenditures for FY2023 through FY2025, and budgeted FY2026 and FY2027 departmental expenditures for this Department. Historical and Budgeted Expenditures Across Department Expenditures Actual Expenditures Budgeted FY2023 FY2024 FY2025 FY2026 FY2027 0 $2M $4M $6M $8M Table of ContentsLaw Enforcement FY27 Proposed Budget | Fountain Hills Page 189Meeting Packet Page 192 of 295 Expenditures by Object The following charts include actual departmental expenditures by Object for FY2023 through FY2025, and budgeted FY2026 and FY2027 departmental expenditures by Object for this Department. Historical and Budgeted Expenditures by Object Supplies Maintenance & Repair Contractual Services FY27 Expenditures by Object Contractual Services $5,794,520 99.98% Maintenance & Repair $1,296 0.02% Supplies $40 0.00% Category FY 2023 Actual FY 2024 Actual FY 2025 Actual FY 2026 Adopted Budget FY 2027 Proposed Budget FY 2026 Adopted Budget vs. FY 2027 Proposed Budget (% Change) Maintenance & Repair ---$1,296 $1,296 0.0% Software License/Maint ---$1,296 $1,296 0.0% Contractual Services $4,574,193 $6,225,785 $6,187,857 $5,859,669 $5,794,520 -1.1% Printing Expense --$726 $700 $700 0.0% Law Patrol $4,503,202 $6,165,791 $6,132,712 $5,759,469 $5,691,320 -1.2% Jail Fees $45,148 $38,326 $32,806 $67,500 $67,500 0.0% Animal Control $25,843 $21,668 $21,613 $32,000 $35,000 9.4% $5M$5M$5M $6M$6M $6M $6M$6M $6M $6M$6M $6M $6M$6M $6M FY2023 FY2024 FY2025 FY2026 FY2027 0 $3M $5M $8M 5.8M Expenditures by Object Table of ContentsLaw Enforcement FY27 Proposed Budget | Fountain Hills Page 190Meeting Packet Page 193 of 295 Category FY 2023 Actual FY 2024 Actual FY 2025 Actual FY 2026 Adopted Budget FY 2027 Proposed Budget FY 2026 Adopted Budget vs. FY 2027 Proposed Budget (% Change) Supplies ---$40 $40 0.0% Office Supplies ---$40 $40 0.0% Total Expenditures $4,574,193 $6,225,785 $6,187,857 $5,861,005 $5,795,856 -1.1% Most of the Law Enforcement Department FY2027 budget is for contractual services, and primarily to pay the Maricopa County Sheriff's Office (MCSO) for the Town's Intergovernmental Agreement (MCSO IGA) for patrol ser vices. As you can see above under the "Law Patrol" line item, the budgeted amount of $5.69 million is a slight decrease of 1.2% from the prior year.  Accordingly, this Department's budget has decreased for next year. Table of ContentsLaw Enforcement FY27 Proposed Budget | Fountain Hills Page 191Meeting Packet Page 194 of 295 Capital Improvement Plan The Town of Fountain Hills' Capital Improvement Plan (CIP) is a strategic roadmap for long-term improvements within our Town over the next 5 years.  All CIP projects included in each annual budget are discussed and approved by Council to enhance the community's infrastructure and assets. The CIP plan is intended to serve as a comprehensive guide for the Town's long-term funding strategies, goals, and implementation timelines. Capital Budgeting Process The Town's Capital Improvement Plan (CIP) includes a 5-year outlook for planning and funding purposes. All CIP projects are proposed during budget work sessions throughout each fiscal year, based on the Town's infrastructure needs with an emphasis on improvements that will increase the safety of our residents and protect the infrastructure we have in place. Park amenity projects are also proposed to increase cultural and recreational opportunities within our Town. The culmination of these discussions occurs during a budget work session each March, when the Council provides direction on which CIP projects should be funded and included in the proposed budget presented to Council in April.   During the proposed budget work session in April, the Council provides direction each year on which CIP projects to include in the Tentative budget in May.  Once the Council adopts the tentative budget in May, that is the maximum amount of CIP funding that can be allocated, and any final changes can only reduce those amounts. The Council adopts the final budget in early June, and once that happens, Town staff begin planning for the next fiscal year and have the ability to begin ordering goods and services to begin construction as early as July of the next fiscal year. During the fiscal year, staff have taken steps to provide more transparency and accountability over the progress of CIP projects.  These steps include regularly scheduled staff meetings to discuss CIP funding, project progress and next steps. The Public Works and Community Services depar tments also provide quarterly CIP progress updates to Council during meetings open to the public. Basis for Capital Revenue and Expenditures Estimates The Town's Public Works Department includes a Town Engineer and Assistant Town Engineer (engineers). These staff, alongside the Public Works Director and Community Services Director, prepare CIP project expenditure estimates when feasible. For larger-scale and more complex projects, the engineers sometimes utilize consultants to prepare project cost estimates. For CIP revenue estimates, the engineers work with Finance staff to estimate grant reimbursements based on actual reimbursement rates, and Finance staff includes CIP revenue projections in its collective revenue projection process. For example, Council-adopted financial policies require Finance staff to deposit 50% of construction local sales tax revenues and General Fund year-end excess reser ves into the Capital Projects Fund. Table of ContentsCapital Improvement Plan FY27 Proposed Budget | Fountain Hills Page 192Meeting Packet Page 195 of 295 One Year Plan The Town's FY2027 Proposed Capital Improvement Plan (CIP) includes $9.3 million for 20 capital improvements (including some carryover projects from FY2026) within our Town. 10 of these projects are for planned park amenity improvements, including completing Skyview Park to create stargazing opportunities for our residents which will be funded by development impact fees. Staff are also developing potential plans for a new community park, Sierra Madre, which would be a $12 million total capital investment over the next 5 years, but will be supplemented by Parks Development Impact fees as those revenues become available. Most impactful to the Town is completing a design for the eventual replacement of our lake liner at Fountain Park, a $1 million investment in FY2027, from the lake liner savings set aside by the Council in the Town's Facilities Reserve Fund. Another 10 projects are planned for streets, facilities, downtown and drainage improvements. These projects are intended to improve safety and recreational opportunities for Town residents, and provide additional protection and longevity for the Town's existing improvements. For example, this CIP includes $1 million of carryover budget from FY2026 to complete the widening of Shea Blvd between Palisades Blvd and Fountain Hills Blvd, and $2.0 million to complete construction for improvements along Verde River Dr, the next planned phase of the Dowtown Streetscapes Improvement project. The $9.3 million and a contingency of almost $700K have been included in the Capital Projects Fund budget to plan for these projects for total Capital Projects Fund budgeted expenditures of $10 million for FY2027. The Town uses these budgeted line items for each project and reimburses the Capital Projects Fund form other funding sources that are earmarked for particular projects. For example, Skyview Park will be constructed using Parks Development Impact Fee Fund monies. Therefore, the Town will pay vendors from the Capital Projects Fund and immediately transfer monies from the Parks Development Impact Fee Fund into the Capital Projects Fund for the construction progress. FY27 Total Capital Requested $9,303,000 FY27 Total Funding Requested $9,303,000 Table of ContentsOne Year Plan FY27 Proposed Budget | Fountain Hills Page 193Meeting Packet Page 196 of 295 FY27 Total Funding Requested by Source Capital Project Fund (600)$4,871,750 52.37% Parks Development Fee Fund (740) $1,600,000 17.20% Grants $1,131,250 12.16% Facilities Reserve Fund (610)$1,000,000 10.75% Facilities Reserve Fund $400,000 4.30% Streets Development Fee Fund (730) $300,000 3.22% FY27 Total Funding Requested by Department Public Works $5,103,000 54.85% Community Services $4,200,000 45.15% 9.3M 9.3M Table of ContentsOne Year Plan FY27 Proposed Budget | Fountain Hills Page 194Meeting Packet Page 197 of 295 Capital Improvement Multi-Year Plan This page shows the next five-year outlook of the FY2027 Proposed Capital Improvement Plan, including projected capital costs and earmarked funding sources. This outlook includes 4 additional capital projects earmarked for future years, but not included in the FY2027 projected costs: 3rd and final year of the Avenue Linear Park Improvements - $250,000 in FY2028 Library/Museum Drainage Improvements - $300,00 in FY2028 Palm tree & electrical upgrades on Avenue of the Fountains - $80,000 in FY2028 Desert Vista Skate Park slope improvements - $130,000 in FY2030  Staff will project needs after the completion of each year in this future outlook, to ensure funding sources are available and adequate for each respective budget year. FY27 - FY31 Total Funding Requested by Department (including Future Budgeted) Funding by Department Totals (all years) Community Services $32,755,000 60.71% Public Works $21,198,000 39.29% $9M$9M$9M $9M$9M$9M $11M$11M$11M $6M$6M $6M $3M$3M $3M $16M$16M $16M 2027 2028 2029 2030 2031 Future Budgeted 0 $5M $10M $15M $20M Table of ContentsMulti-Year Plan FY27 Proposed Budget | Fountain Hills Page 195Meeting Packet Page 198 of 295 FY27 - FY31 Total Funding Requested by Source (including Future Budgeted) Funding by Source Totals (all years) Capital Project Fund (600)$27,871,750 51.66% Facilities Reserve Fund (610)$17,000,000 31.51% Grants $4,881,250 9.05% Parks Development Fee Fund (740) $3,200,000 5.93% Facilities Reserve Fund $700,000 1.30% Streets Development Fee Fund (730) $300,000 0.56% $9M$9M$9M $9M$9M$9M $11M$11M$11M $6M$6M $6M $3M$3M $3M $16M$16M $16M 2027 2028 2029 2030 2031 Future Budgeted 0 $5M $10M $15M $20M Table of ContentsMulti-Year Plan FY27 Proposed Budget | Fountain Hills Page 196Meeting Packet Page 199 of 295 Capital Projects Below is a full listing of all CIP projects included in the FY2027 proposed budget (totals include all estimated costs over the next 5 years), based on Council direction at various budget retreats and work sessions throughout FY2026. The following pages detail each specific proposed project, its estimated costs, timeline, and funding considerations. Capital Projects Project No. / Project Name Years Departments Type Total D6070 Ashbrook Wash Slope Stabilization 2027 - 2029 Public Works CIP - Storm Water $5,250,000 P3059 Avenue Linear Park Improvements 2028 Community Services CIP - Parks $250,000 P3071 Community Center - Turf Improvement and Fitness Area 2027 - 2028 Community Services CIP - Parks $325,000 D6068 Dam Sediment Removal and Improvements 2027 - 2031 Public Works CIP - Storm Water $500,000 P3072 Desert Vista Park - Skate Park Slope Improvements 2030 Community Services CIP - Parks $130,000 P3066 Desert Vista Pump House 2027 Community Services CIP - Parks $300,000 E8506 Downtown Streetscape Improvement Program 2027 - 2030 Public Works CIP - Streets $10,218,000 P3070 Fountain Park - Turf Reduction, Grade and Drainage Work, and Event Usage Improvement 2027 Community Services CIP - Parks $75,000 P3068 Fountain Park Bollard Light Replacement 2027 Community Services CIP - Parks $300,000 P3038 Fountain Park Lake Liner Replacement 2027 Community Services CIP - Parks $1,000,000 P3067 Fountain Park Ramada Replacement 2027 Community Services CIP - Parks $200,000 P3064 Four Peaks Electrical Building 2027 Community Services CIP - Parks $200,000 D6057 Golden Eagle Impoundment Area Improvements - Phase II 2027 Public Works CIP - Storm Water $325,000 P3069 Golden Eagle Park - Pump House and Storage Tank Design 2027 - 2030 Community Services CIP - Parks $575,000 S6068 Guardrail Replacement Town- wide 2027 - 2031 Public Works CIP - Streets $250,000 D6069 Library/Museum Drainage Improvements 2028 Public Works CIP - Facilities $300,000 F4047 Library/Museum/Community Center Air Handler Upgrades 2027 Public Works CIP - Facilities $400,000 E8509 Palm Tree Lighting and Electrical Upgrades on Avenue of the Fountains 2028 Public Works CIP - Streets $80,000 S7002 Pedestrian Marked Crosswalks - Town-wide 2027 - 2031 Public Works CIP - Streets $750,000 S6058 Shea Boulevard Widening - Eastbound from Palisades Blvd to Fountain Hills Blvd - Development Fees 2027 Public Works CIP - Streets $1,000,000 S6061 Sidewalk Infill and Design 2027 - 2031 Public Works CIP - Streets $1,625,000 P3044 Sierra Madre Park 2027 - 2031 Community Services CIP - Parks $12,000,000 Table of ContentsCapital Projects FY27 Proposed Budget | Fountain Hills Page 197Meeting Packet Page 200 of 295 Project No. / Project Name Years Departments Type Total P3060 Skyview Park - Development Fees 2027 Community Services CIP - Parks $1,400,000 F4046 Town Hall Campus Buildings - Roof Rehabilitation 2027 Public Works CIP - Facilities $500,000 Table of ContentsCapital Projects FY27 Proposed Budget | Fountain Hills Page 198Meeting Packet Page 201 of 295 Community Ser vices FY27 - FY31 Community Services Projects (including Future Budgeted) Fountain Park Lake Liner Replacement $17,000,000 51.90% Sierra Madre Park $12,000,000 36.64% Skyview Park - Development Fees $1,400,000 4.27% Golden Eagle Park - Pump House and Storage Tank Design $575,000 1.76% Community Center - Turf Improvement and Fitness Area $325,000 0.99% Fountain Park Bollard Light Replacement $300,000 0.92% Desert Vista Pump House $300,000 0.92% Avenue Linear Park Improvements $250,000 0.76% Four Peaks Electrical Building $200,000 0.61% Fountain Park Ramada Replacement $200,000 0.61% Desert Vista Park - Skate Park Slope Improvements $130,000 0.40% Fountain Park - Turf Reduction, Grade and Drainage Work, and Event Usage Improvement $75,000 0.23% $4M$4M$4M $3M$3M $3M $5M$5M $5M $3M$3M $3M $2M$2M$2M $16M$16M$16M 2027 2028 2029 2030 2031 Future Budgeted 0 $5M $10M $15M $20M Summary of Requests Project No. / Category FY2027 FY2028 FY2029 FY2030 FY2031 Future Budgeted Total P3038 Fountain Park Lake Liner Replacement $1,000,000 $0 $0 $0 $0 $16,000,000 $17,000,000 P3044 Sierra Madre Park $600,000 $2,000,000 $5,000,000 $2,400,000 $2,000,000 $0 $12,000,000 P3060 Skyview Park - Development Fees $1,400,000 $0 $0 $0 $0 $0 $1,400,000 P3069 $75,000 $0 $0 $500,000 $0 $0 $575,000 Table of ContentsCommunity Services FY27 Proposed Budget | Fountain Hills Page 199Meeting Packet Page 202 of 295 Project No. / Category FY2027 FY2028 FY2029 FY2030 FY2031 Future Budgeted Total Golden Eagle Park - Pump House and Storage Tank Design P3071 Community Center - Turf Improvement and Fitness Area $50,000 $275,000 $0 $0 $0 $0 $325,000 P3068 Fountain Park Bollard Light Replacement $300,000 $0 $0 $0 $0 $0 $300,000 P3066 Desert Vista Pump House $300,000 $0 $0 $0 $0 $0 $300,000 P3059 Avenue Linear Park Improvements $0 $250,000 $0 $0 $0 $0 $250,000 P3064 Four Peaks Electrical Building $200,000 $0 $0 $0 $0 $0 $200,000 P3067 Fountain Park Ramada Replacement $200,000 $0 $0 $0 $0 $0 $200,000 P3072 Desert Vista Park - Skate Park Slope Improvements $0 $0 $0 $130,000 $0 $0 $130,000 P3070 Fountain Park - Turf Reduction, Grade and Drainage Work, and Event Usage Improvement $75,000 $0 $0 $0 $0 $0 $75,000 Total Summary of Requests $4,200,000 $2,525,000 $5,000,000 $3,030,000 $2,000,000 $16,000,000 $32,755,000 Table of ContentsCommunity Services FY27 Proposed Budget | Fountain Hills Page 200Meeting Packet Page 203 of 295 Avenue Linear Park Improvements Overview Request Owner Kevin Snipes, Community Services Director Department Community Services Type Capital Improvement Project Number P3059 Estimated Start Date 07/1/2024 Estimated Completion Date 06/30/2028 Project Location Description The Avenue Linear Park has been a central focus for the downtown area.  It is the desire of the groups that own businesses in the area for the park to have more shaded sitting areas in hopes that prospective clients will stay longer and visit area businesses.  This will be a multi-year park improvement similar to the ones done at Four Peaks Park that will include improving the parks' usability with this in mind.  Improvements will include new shade structures, picnic tables, replacing power outlets, eliminating the need for spider boxes, and additional landscaping.  Staff is recommending $250,000 in the third year for a total of $650,000 over three years.  Staff is recommending delaying the final phase of this project until Fiscal Year 2028 (with a gap year of no activity in Fiscal Year 2027). Images LINEAR PARK - SHADE STRUCTURE LOCATION SHADE STRUCTURE LOCATION LINEAR PARK - SHADE STRUCTURE TOP VIEW SHADE STRUCTURE TOP VIEW LINEAR PARK - SHADE STRUCTURE PROFILE SHADE STRUCTURE PROFILE Table of ContentsAvenue Linear Park Improvements FY27 Proposed Budget | Fountain Hills Page 201Meeting Packet Page 204 of 295 Details Strategic Initiative:Maintain current infrastructure and prepare for emerging trends Type of Project:Improvement Capital Cost FY2027 Budget $0 Total Budget (all years) $250K Project Total $250K Funding Sources FY2027 Budget $0 Total Budget (all years) $250K Project Total $250K Detailed Breakdown Category FY2028 Requested Future Budgeted Total Construction $250,000 $0 $250,000 Total $250,000 $0 $250,000 Detailed Breakdown Category FY2028 Requested Future Budgeted Total Capital Project Fund (600)$250,000 $0 $250,000 Total $250,000 $0 $250,000 Table of ContentsAvenue Linear Park Improvements FY27 Proposed Budget | Fountain Hills Page 202Meeting Packet Page 205 of 295 Community Center - Turf Improvement and Fitness Area Overview Request Owner Kyle Harris, Parks Superintendent Department Community Services Type Capital Improvement Project Number P3071 Estimated Start Date 10/1/2026 Estimated Completion Date 06/30/2028 Project Location Description Staff will design and build the area to the southeast of the community center to provide a space that Senior Services and Recreation can use for outdoor programming and will greatly improve the event space.  The area south of the Community Center will include a shade over the equipment, which will also greatly reduce heat impacts on the building and windows in this area, which have been a long-term issue for the ballroom hallway.  This CIP request is for $50,000 in FY2027 to complete grading efforts for the grass area, before installing fitness equipment in FY2028 for up to $275,000. Images COMMUNITY CENTER - FITNESS AREA - SHADE STRUCTURE FITNESS AREA WITH SHADE STRUCTURE COMMUNITY CENTER - OUTDOOR SPACE IMPROVEMENT OUTDOOR SPACE IMPROVEMENT COMMUNITY CENTER - OUTDOOR SPACE IMPROVEMENT OUTDOOR SPACE IMPROVEMENT Table of ContentsCommunity Center - Turf Improvement and Fitness Area FY27 Proposed Budget | Fountain Hills Page 203Meeting Packet Page 206 of 295 Details Strategic Initiative:Improve public health, well-being, and safety of our community Type of Project:New Construction Benefit to Community This improvement will benefit the community by making the space a usable space for the Community Center to offer outdoor activities on level turf areas. It will also provide a shaded fitness/balance area that can be used comfortably for most of the year. Currently, this space is largely underutilized as it is marginally used during events only.   Supplemental Attachments COMMUNITY CENTER - FITNESS AREA WITH SHADE STRUCTU AREA FOR FITNESS AND SAHDE STRUCTURE COMMUNITY CENTER - OUTDOOR SPACE IMPROVEMENT FLATTEN TURF AREA TO CREATE USABLE OUTDOOR SPACE COMMUNITY CENTER - OUTDOOR SPACE IMPROVEMENT FLATTEN TURF AREA TO CREATE USABLE SPACE Capital Cost FY2027 Budget $50K Total Budget (all years) $325K Project Total $325K Funding Sources FY2027 Budget $50K Total Budget (all years) $325K Project Total $325K Detailed Breakdown Category FY2027 Requested FY2028 Requested Future Budgeted Total Construction $50,000 $275,000 $0 $325,000 Total $50,000 $275,000 $0 $325,000 Detailed Breakdown Category FY2027 Requested FY2028 Requested Future Budgeted Total Capital Project Fund (600)$50,000 $275,000 $0 $325,000 Total $50,000 $275,000 $0 $325,000 Table of ContentsCommunity Center - Turf Improvement and Fitness Area FY27 Proposed Budget | Fountain Hills Page 204Meeting Packet Page 207 of 295 Deser t Vista Park - Skate Park Slope Improvements Overview Request Owner Kyle Harris, Parks Superintendent Department Community Services Type Capital Improvement Project Number P3072 Estimated Start Date 07/1/2029 Estimated Completion Date 02/28/2030 Project Location Description This request proposes removing the underperforming turf on the slope west of the skate park to conserve water and enhance the park’s appearance. In conjunction with the turf removal, staff is recommending the installation of a new cantilever shade structure and seating area at the base of the slope adjacent to the skate park. The lack of shade is the most common concern received regarding the new facility. These improvements will create a more inviting space and provide a safe, comfortable area for spectators to observe skate park activities. Images DESERT VISTA SKATE PARK SLOPE VIEW LOOKING EAST DESERT VISTA SKATE PARK SLOPE VIEW LOOKING NORTH Table of ContentsDesert Vista Park - Skate Park Slope Improvements FY27 Proposed Budget | Fountain Hills Page 205Meeting Packet Page 208 of 295 Details Strategic Initiative:Improve public health, well-being, and safety of our community Benefit to Community The benefit to the community will be a more inviting entrance to the park.  It will also allow for shade in the skate park, which can provide extended time of use.  With the shade, this will also provide a space for spectators to safely watch park patrons without being inside the skate park.   Supplemental Attachments DESERT VISTA SKATE PARK SLOPE VIEW LOOKING NORTH DESERT VISTA SKATE PARK SLOPE VIEW LOOKING EAST Capital Cost FY2027 Budget $0 Total Budget (all years) $130K Project Total $130K Funding Sources FY2027 Budget $0 Total Budget (all years) $130K Project Total $130K Detailed Breakdown Category FY2030 Requested Future Budgeted Total Construction $130,000 $0 $130,000 Total $130,000 $0 $130,000 Detailed Breakdown Category FY2030 Requested Future Budgeted Total Capital Project Fund (600)$130,000 $0 $130,000 Total $130,000 $0 $130,000 Table of ContentsDesert Vista Park - Skate Park Slope Improvements FY27 Proposed Budget | Fountain Hills Page 206Meeting Packet Page 209 of 295 Deser t Vista Pump House Overview Request Owner Kevin Snipes, Community Services Director Department Community Services Type Capital Improvement Project Number P3066 Estimated Start Date 07/1/2025 Estimated Completion Date 06/30/2027 Project Location Description Desert Vista Park’s irrigation system relies on a booster pump and electrical gear housed in steel cabinets exposed to extreme heat. Prolonged exposure to such conditions accelerates wear and reduces the lifespan of the system’s critical components. Compounding the issue, the irrigation system’s computer controls share the same cabinet as the pump. This arrangement led to a costly failure when a pump leak sprayed water onto the computer system, requiring both components to be replaced. To address these vulnerabilities, a pre-fabricated structure is proposed to enclose and protect the irrigation pump, electrical gear, and controls. This enclosure will shield the equipment from extreme heat and environmental hazards, extending its longevity and reducing maintenance costs. Separating the systems within the enclosure will also prevent cascading failures, ensuring that malfunctions are isolated and repairs remain manageable. This upgrade is essential to maintaining efficient irrigation operations and preserving the park’s landscaping. This is a multi-year capital project, with $50,000 already budgeted in FY2026, and staff will plan to complete construction in FY2027 for up to $300,000. Images Pump cabinet and electrical gear Irrigation controllers Pump Cabinet Table of ContentsDesert Vista Pump House FY27 Proposed Budget | Fountain Hills Page 207Meeting Packet Page 210 of 295 Details Strategic Initiative:Maintain current infrastructure and prepare for emerging trends Capital Cost FY2027 Budget $300K Total Budget (all years) $300K Project Total $300K Funding Sources FY2027 Budget $300K Total Budget (all years) $300K Project Total $300K Operational Costs FY2027 Budget $1K Total Budget (all years) $4K Project Total $5K Detailed Breakdown Category FY2027 Requested Future Budgeted Total Construction $300,000 $0 $300,000 Design/Engineering $0 $0 $0 Total $300,000 $0 $300,000 Detailed Breakdown Category FY2027 Requested Future Budgeted Total Capital Project Fund (600)$300,000 $0 $300,000 Total $300,000 $0 $300,000 Detailed Breakdown Category FY2027 Requested FY2028 Requested FY2029 Requested FY2030 Requested Future Budgeted Total Other Impact $1,000 $1,000 $1,000 $1,000 $1,000 $5,000 Total $1,000 $1,000 $1,000 $1,000 $1,000 $5,000 Table of ContentsDesert Vista Pump House FY27 Proposed Budget | Fountain Hills Page 208Meeting Packet Page 211 of 295 Fountain Park - Turf Reduction, Grade and Drainage Work, and Event Usage Improvement Overview Request Owner Kyle Harris, Parks Superintendent Department Community Services Type Capital Improvement Project Number P3070 Estimated Start Date 07/1/2026 Estimated Completion Date 09/30/2026 Project Location Description In three areas around Fountain Park, work will be done to reduce turf, improve aesthetics, improve drainage, and create more flat, usable spaces.  In the first area, at the southwest corner of El Lago and Panorama Blvd, near the Fountain Hills monument, the turf will be replaced with granite.  This area will have irrigation modified to new drip irrigation, and new plantings will be installed around the monument to improve the appearance and aesthetics in and around the sign.  This will also protect the APS transformers and the sanitary district's well site.  In the second area, near the Great Lawn, some of the berm will be removed and graded down to account for the new grade. In the lower area, new clean soil will be imported to reduce puddling and create a large flat space for programs and events.  The current irrigation system will undergo minor modifications to accommodate the new grade elevations.  In the third area, just south of the amphitheater, they will import soil to raise the level of the small basin, reducing puddling and creating additional flat, usable space. Table of ContentsFountain Park - Turf Reduction, Grade and Drainage Work, and Event Usage Improvement FY27 Proposed Budget | Fountain Hills Page 209Meeting Packet Page 212 of 295 Images FOUNTAIN PARK - MONUMENT SIGN MONUMENT SIGN FOUNTAIN PARK MONUMENT SIGN LIMITS OF WORK LIMITS OF WORK FOUNTAIN PARK - SOUTH OF AMPHITHEATER SOUTH OF AMPHITHEATER FOUNTAIN PARK - EAST SIDE GREAT LAWN EAST SIDE GREAT LAWN Details Strategic Initiative:Improve public health, well-being, and safety of our community Benefit to Community These improvements will improve the appearance and be more inviting from El Lago and Panorama Blvd.  By adjusting and reworking the grade in the other areas, this will allow for more or larger events to utilize these spaces, allowing for additional revenue and a better overall experience.   Supplemental Attachments FOUNTAIN PARK - MOUNMENT SIGN AREA TO REDUCE TURF AND LANDSCAPE FOUNTAIN PARK - MONUMENT SIGN LIMITS OF WORK APPROXIMATE LIMITS OF WORK AT THE MONUMENT SIGN FOUNTAIN PARK - SOUTH OF AMPHITHEATER GRADE WORK AND TURF IMPROVEMENT FOUNTAIN PARK - EAST SIDE GREAT LAWN GRADE WORK AND TURF IMPROVEMENT Table of ContentsFountain Park - Turf Reduction, Grade and Drainage Work, and Event Usage Improvement FY27 Proposed Budget | Fountain Hills Page 210Meeting Packet Page 213 of 295 Capital Cost FY2027 Budget $75K Total Budget (all years) $75K Project Total $75K Funding Sources FY2027 Budget $75K Total Budget (all years) $75K Project Total $75K Detailed Breakdown Category FY2027 Requested Future Budgeted Total Construction $75,000 $0 $75,000 Total $75,000 $0 $75,000 Detailed Breakdown Category FY2027 Requested Future Budgeted Total Capital Project Fund (600)$75,000 $0 $75,000 Total $75,000 $0 $75,000 Table of ContentsFountain Park - Turf Reduction, Grade and Drainage Work, and Event Usage Improvement FY27 Proposed Budget | Fountain Hills Page 211Meeting Packet Page 214 of 295 Fountain Park Bollard Light Replacement Overview Request Owner Kevin Snipes, Community Services Director Department Community Services Type Capital Improvement Project Number P3068 Estimated Start Date 07/1/2026 Estimated Completion Date 06/30/2027 Description Staff requests approval of a Capital Improvement Project to retrofit and replace the lighting components of more than 300 existing bollard fixtures in Fountain Park. This project will retain the existing bollard fixtures and replace only the internal lighting with new, more energy-efficient LED lamps, reducing glare and up-lighting by lowering the correlated color temperature from over 3,000 Kelvin to 2,700 Kelvin. The retrofit supports dark-sky best practices, improves nighttime visual comfort by having almost no upward glare and pedestrian safety, and reduces energy consumption and maintenance costs while maximizing the use of existing infrastructure and minimizing overall project costs.  These lights will be plug and play into the original fixtures.  Images bollard lighting.png Details Strategic Initiative:Maintain current infrastructure and prepare for emerging trends Table of ContentsFountain Park Bollard Light Replacement FY27 Proposed Budget | Fountain Hills Page 212Meeting Packet Page 215 of 295 Supplemental Attachments Fountain Park bollard measurements July 2025.pdf Capital Cost FY2027 Budget $300K Total Budget (all years) $300K Project Total $300K Funding Sources FY2027 Budget $300K Total Budget (all years) $300K Project Total $300K Detailed Breakdown Category FY2027 Requested Future Budgeted Total Equipment/Furnishings $300,000 $0 $300,000 Total $300,000 $0 $300,000 Detailed Breakdown Category FY2027 Requested Future Budgeted Total Capital Project Fund (600)$300,000 $0 $300,000 Total $300,000 $0 $300,000 Table of ContentsFountain Park Bollard Light Replacement FY27 Proposed Budget | Fountain Hills Page 213Meeting Packet Page 216 of 295 Fountain Park Lake Liner Replacement Overview Request Owner Kevin Snipes, Community Services Director Department Community Services Type Capital Improvement Project Number P3038 Estimated Start Date 07/1/2026 Project Location Description Research and design of the best known methods of removal of 100,000,000 gallons of water, sludge removal, wildlife impacts, Sanitary District impacts, resident impacts, etc. for fountain lake liner replacement. Our current plan is to begin planning in FY2027 (budget of $1M), work through the design of this project in FY2027, and complete construction when the liner fails.  Having the design done now will make it much easier when the time comes to do the repairs needed and not delay the process for the design to be completed. This requested project will begin with $1 million in FY2027 from the Facilities Reserve Fund (Lake Liner savings), with future construction costs to be budgeted from the Facilities Reserve Fund and Capital Project Fund. Staff are recommending completing the design in FY2027, but not proceeding with replacement/construction of the lake liner until it begins showing signs of failure through evaporative testing completed every 5 years. Images Aerial Photo.JPG MVC-004S.JPG MVC-005S.JPG MVC-012S.JPG Details Strategic Initiative:Maintain current infrastructure and prepare for emerging trends Type of Project:Improvement Benefit to Community The Fountain Park Lake liner is a critical infrastructure component that maintains water retention for the fountain and irrigation for the park, protects underlying soils, and supports the overall functionality and appearance of the lake. The Table of ContentsFountain Park Lake Liner Replacement FY27 Proposed Budget | Fountain Hills Page 214Meeting Packet Page 217 of 295 existing liner, when it reaches the end of its useful life, will require proactive planning to prevent potential water loss, structural concerns, and more costly emergency repairs in the future.  This project will fund the professional design and engineering services required to prepare construction-ready documents for the replacement of the lake liner. The design phase will include site evaluation, material analysis, phasing recommendations, permitting review, cost estimating, and coordination with fountain operations to minimize service disruption. The consultant will also evaluate opportunities to improve durability, maintenance efficiency, and long-term performance. Completing the design now positions the Town to plan and budget appropriately for construction and schedule the work during an optimal seasonal window to reduce community impact. Advancing this project demonstrates proactive asset management and protects one of the Town’s most recognizable and heavily utilized community amenities. Capital Cost FY2027 Budget $1M Total Budget (all years) $1M Project Total $17M Funding Sources FY2027 Budget $1M Total Budget (all years) $1M Project Total $17M Detailed Breakdown Category FY2027 Requested Future Budgeted Total Construction $0 $16,000,000 $16,000,000 Design/Engineering $1,000,000 $0 $1,000,000 Total $1,000,000 $16,000,000 $17,000,000 Detailed Breakdown Category FY2027 Requested Future Budgeted Total Facilities Reserve Fund (610)$1,000,000 $16,000,000 $17,000,000 Total $1,000,000 $16,000,000 $17,000,000 Table of ContentsFountain Park Lake Liner Replacement FY27 Proposed Budget | Fountain Hills Page 215Meeting Packet Page 218 of 295 Fountain Park Ramada Replacement Overview Request Owner Kevin Snipes, Community Services Director Department Community Services Type Capital Improvement Project Number P3067 Estimated Start Date 07/1/2025 Estimated Completion Date 06/30/2027 Project Location Description The ramadas at Fountain Park are deteriorating, with failing support beams, masonry columns, and roof structures creating unsafe conditions and potential liability for the Town. These hazards pose risks to visitors and jeopardize revenue generated through ramada rentals. Initial quotes for roof replacement exceeded $100,000 due to the custom design, but this would only provide a temporary fix, as the structures are prone to the same long-term failures. Staff proposes fully replacing the ramadas, addressing structural deficiencies comprehensively and ensuring durability. This approach eliminates safety risks, reduces liability exposure, and preserves the ramadas as vital revenue-generating assets for the department. Investing in long-lasting, safe structures ensures continued community use and offsets costs through rental income. This capital project program aims to address the final two of five ramadas as three are planned for completion in FY2026. This is a multi-year capital project, with $320,000 budgeted for FY2026, and up to $200,000 for construction in FY2027. Images Rusting Roof Structural Cracking FP Ramada 2.jpg Table of ContentsFountain Park Ramada Replacement FY27 Proposed Budget | Fountain Hills Page 216Meeting Packet Page 219 of 295 Details Strategic Initiative:Maintain current infrastructure and prepare for emerging trends Supplemental Attachments FOUNTAIN PARK RAMADA LOCATIONS THIS SHOWS THE LOCATIONS OF THE FIVE EXISTING RAMADAS FOUNTAIN PARK - RAMADA HOLE IN ROOF THIS PICTURE SHOWS THE HOLE IN THE RAMADA ROOF FOUNTAIN PARK - RAMADA FAILING WALL THIS PICTURE SHOWS TEH FAILING WALL FOUNTAIN PARK - RAMADA FAILING ROOF THIS PICTURE SHOWS TEH FAILING ROOF Capital Cost FY2027 Budget $200K Total Budget (all years) $200K Project Total $200K Funding Sources FY2027 Budget $200K Total Budget (all years) $200K Project Total $200K Detailed Breakdown Category FY2027 Requested Future Budgeted Total Construction $200,000 $0 $200,000 Design/Engineering $0 $0 $0 Total $200,000 $0 $200,000 Detailed Breakdown Category FY2027 Requested Future Budgeted Total Capital Project Fund (600)$200,000 $0 $200,000 Total $200,000 $0 $200,000 Table of ContentsFountain Park Ramada Replacement FY27 Proposed Budget | Fountain Hills Page 217Meeting Packet Page 220 of 295 Four Peaks Electrical Building Overview Request Owner Kevin Snipes, Community Services Director Department Community Services Type Capital Improvement Project Number P3064 Estimated Start Date 07/1/2025 Estimated Completion Date 06/30/2027 Description The addition of new amenities, including pickleball courts and a restroom, has exceeded the capacity of the existing small electrical room at the park. The current space is insufficient to house the necessary equipment, and it cannot meet electrical code requirements, which mandate a 3-foot separation between transformers. This creates operational and compliance challenges that must be addressed. Additionally, the field lighting control switches are currently mounted on the exterior of the building, leaving them vulnerable to harsh weather conditions and tampering. These issues compromise the safety, reliability, and longevity of the electrical systems that power critical park amenities. This project proposes constructing and installing a new pre-fabricated building to house the electrical equipment. By remounting the electrical gear inside a secure, weather-resistant enclosure, the project will ensure compliance with codes, protect equipment from vandalism and environmental damage, and support the long-term functionality of the park's amenities.  This is a multi-year capital project, with $50,000 budgeted for design in FY2026, and up to $200,000 for construction in FY2027. Table of ContentsFour Peaks Electrical Building FY27 Proposed Budget | Fountain Hills Page 218Meeting Packet Page 221 of 295 Images Cramped Quarters Deteriorating Building Exterior Lighting Controls Details Strategic Initiative:Maintain current infrastructure and prepare for emerging trends Type of Project:Improvement Capital Cost FY2027 Budget $200K Total Budget (all years) $200K Project Total $200K Funding Sources FY2027 Budget $200K Total Budget (all years) $200K Project Total $200K Detailed Breakdown Category FY2027 Requested Future Budgeted Total Construction $200,000 $0 $200,000 Design/Engineering $0 $0 $0 Total $200,000 $0 $200,000 Detailed Breakdown Category FY2027 Requested Future Budgeted Total Capital Project Fund (600)$200,000 $0 $200,000 Total $200,000 $0 $200,000 Table of ContentsFour Peaks Electrical Building FY27 Proposed Budget | Fountain Hills Page 219Meeting Packet Page 222 of 295 Operational Costs FY2027 Budget $1K Total Budget (all years) $4K Project Total $5K Detailed Breakdown Category FY2027 Requested FY2028 Requested FY2029 Requested FY2030 Requested Future Budgeted Total Other Impact $1,000 $1,000 $1,000 $1,000 $1,000 $5,000 Total $1,000 $1,000 $1,000 $1,000 $1,000 $5,000 Table of ContentsFour Peaks Electrical Building FY27 Proposed Budget | Fountain Hills Page 220Meeting Packet Page 223 of 295 Golden Eagle Park - Pump House and Storage Tank Design Overview Request Owner Kyle Harris, Parks Superintendent Department Community Services Type Capital Improvement Project Number P3069 Estimated Start Date 07/1/2026 Estimated Completion Date 06/30/2030 Description This capital improvement request is for the design phase only and will allow the Town to prepare for the installation of a new pump house and storage tank system at Golden Eagle Park. The proposed design will help reduce system downtime, decrease maintenance issues caused by bryozoa from the golf course lake, which currently clog more than 300 irrigation heads and require manual cleaning, and eliminate reliance on the golf course as the park’s primary irrigation water source. These improvements will enable Town staff to more effectively maintain, monitor, and manage the park’s irrigation system. This request will be a multi-year capital project with $75,000 being requested for FY2027 to complete design, and staff have initially earmarked budget in FY2030 to complete the construction.  If other projects are delayed in FY2028 and 2029, then staff will recommend moving up the timeline for construction. Table of ContentsGolden Eagle Park - Pump House and Storage Tank Design FY27 Proposed Budget | Fountain Hills Page 221Meeting Packet Page 224 of 295 Images GOLDEN EAGLE PARK - PUMP HOUSE STORAGE TANK SITE PUMP HOUSE STORAGE TANK SITE GOLDEN EAGLE PARK - PUMP/HOUSE STORAGE TANK PUMP HOUSE STORAGE TANK LOCATION GOLEDN EAGLE PARK - POINT OF CONNECTION POINT OF CONNECTION Bryozoa.png Details Strategic Initiative:Maintain current infrastructure and prepare for emerging trends Supplemental Attachments GOLDEN EAGLE PARK - PUMP HOUSE-STORAGE TANK THIS IS THE AREA TO BE REPURPOSED FOR TEH PUMP HOUSE AND STROAGE TANK GOLDEN EAGEL PARK - POINT OF CONNECTION THIS IS THE APPROXIMATE LOCATION OF THE CURRENT RECLAIMED WATER LINE RUNNIGN THORUGH THE PARK THAT WOULD BE OUT POINT OF CONNECTION TO GAIN ACCESS TO THE ATER. Capital Cost FY2027 Budget $75K Total Budget (all years) $575K Project Total $575K Detailed Breakdown Category FY2027 Requested FY2030 Requested Future Budgeted Total Construction $0 $500,000 $0 $500,000 Design/Engineering $75,000 $0 $0 $75,000 Total $75,000 $500,000 $0 $575,000 Table of ContentsGolden Eagle Park - Pump House and Storage Tank Design FY27 Proposed Budget | Fountain Hills Page 222Meeting Packet Page 225 of 295 Funding Sources FY2027 Budget $75K Total Budget (all years) $575K Project Total $575K Detailed Breakdown Category FY2027 Requested FY2030 Requested Future Budgeted Total Capital Project Fund (600)$75,000 $500,000 $0 $575,000 Total $75,000 $500,000 $0 $575,000 Table of ContentsGolden Eagle Park - Pump House and Storage Tank Design FY27 Proposed Budget | Fountain Hills Page 223Meeting Packet Page 226 of 295 Sierra Madre Park Overview Request Owner Kevin Snipes, Community Services Director Department Community Services Type Capital Improvement Project Number P3044 Estimated Start Date 07/1/2026 Estimated Completion Date 06/30/2031 Project Location Description The proposed Sierra Madre Community Park Design project will initiate the planning and conceptual development of a future community park on land previously set aside for this purpose. This effort represents an important step in transforming reserved open space into a thoughtfully designed community asset that meets current and future recreational needs. Staff plan to use Parks Development Impact Fees as a funding source throughout the entirety of the project, alongside using Capital Project Fund monies to complete this project. The design phase will include site analysis, and the development of a comprehensive park master plan. Key elements will evaluate circulation, accessibility, safety, sustainability, and compatibility with surrounding uses, while identifying appropriate recreational amenities, open space areas, and supporting infrastructure. The design will also consider long-term maintenance, operational efficiency, and phased implementation opportunities. Completing the park design in a timely manner is especially important due to an adjacent local development project currently underway. Advancing the design now creates an opportunity to coordinate with construction activity occurring next to the park site and potentially utilize existing construction equipment to complete preliminary grading work. Leveraging this equipment during the neighboring project could result in significant cost savings and reduce future disruption to the surrounding area. Investing in the design phase ensures that future park development is guided by a clear vision, aligns with community expectations, and strategically positions the Town to take advantage of near-term efficiencies.  Table of ContentsSierra Madre Park FY27 Proposed Budget | Fountain Hills Page 224Meeting Packet Page 227 of 295 Images FH - Parks Location Map.jpg Sierra Madre Park location.png Details Strategic Initiative:Improve public health, well-being, and safety of our community Type of Project:New Construction Benefit to Community The Sierra Madre Community Park will provide long-term recreational, social, and environmental benefits to the surrounding neighborhoods and the broader community. Developing a comprehensive park design ensures the space is inclusive, accessible, and responsive to community needs, creating opportunities for active recreation, passive enjoyment, and community gathering. The future park will enhance neighborhood livability by providing walkable open space, supporting healthy lifestyles, and offering a safe place for families, children, and residents of all ages to connect outdoors. Well-designed parks also contribute to community identity, promote environmental stewardship, and positively impact nearby property values. Additionally, advancing the design now positions the Town to minimize construction impacts and costs by coordinating with nearby development activity. This proactive approach helps deliver community amenities more efficiently while demonstrating responsible planning and fiscal stewardship. This large-scale capital project is planned for completion over the next five fiscal years, with $600,000 budgeted for design in FY2027, and another $11.4 million over the following four fiscal years for construction. Staff are projecting to use between $200,000 and $400,000 per year in Parks Development Impact Fees and earmark Capital Project Fund monies for the remaining costs of the project.  Another important consideration is that this new park would require additional ongoing staffing and contractual services added to the Town's operational budget each year, estimated at about $400,000 per year starting in FY2030.  Table of ContentsSierra Madre Park FY27 Proposed Budget | Fountain Hills Page 225Meeting Packet Page 228 of 295 Capital Cost FY2027 Budget $600K Total Budget (all years) $12M Project Total $12M Funding Sources FY2027 Budget $600K Total Budget (all years) $12M Project Total $12M Operational Costs FY2027 Budget $0 Total Budget (all years) $800K Project Total $800K Detailed Breakdown Category FY2027 Requested FY2028 Requested FY2029 Requested FY2030 Requested FY2031 Requested Future Budgeted Total Construction $0 $2,000,000 $5,000,000 $2,000,000 $2,000,000 $0 $11,000,000 Design/Engineering $600,000 $0 $0 $0 $0 $0 $600,000 Equipment/Furnishings $0 $0 $0 $400,000 $0 $0 $400,000 Total $600,000 $2,000,000 $5,000,000 $2,400,000 $2,000,000 $0 $12,000,000 Detailed Breakdown Category FY2027 Requested FY2028 Requested FY2029 Requested FY2030 Requested FY2031 Requested Future Budgeted Total Capital Project Fund (600)$400,000 $1,600,000 $4,600,000 $2,000,000 $1,600,000 $0 $10,200,000 Parks Development Fee Fund (740)$200,000 $400,000 $400,000 $400,000 $400,000 $0 $1,800,000 Total $600,000 $2,000,000 $5,000,000 $2,400,000 $2,000,000 $0 $12,000,000 Detailed Breakdown Category FY2030 Requested FY2031 Requested Future Budgeted Total Services/Supplies $250,000 $250,000 $0 $500,000 Salaries/Benefits $150,000 $150,000 $0 $300,000 Total $400,000 $400,000 $0 $800,000 Table of ContentsSierra Madre Park FY27 Proposed Budget | Fountain Hills Page 226Meeting Packet Page 229 of 295 Skyview Park - Development Fees Overview Request Owner Kevin Snipes, Community Services Director Department Community Services Type Capital Improvement Project Number P3060 Estimated Start Date 07/1/2024 Estimated Completion Date 03/31/2027 Project Location Description Skyview Park (previously referred to as Pleasantville Park) is a town-owned property that is about one acre in size on the corner of Bainbridge and Golden Eagle Blvd.  It has been designated as a future park in the Community Services Master Plan.  Staff has been working through the design process these past few years, and are now recommending using parks development impact fees to pay for the construction of the new park in FY2027.  The park location is approved by Dark Sky to be used by star gazers as well as being designed for classes for yoga, Ti Chi, meditation and other small classes and events.  It will also have a small trail with educational plant identification.  Staff has spent about $135,000 on the design of the park up through March 2026, and are requesting up to $1,400,000.00 for construction of the new park next year.   Images Skyview Park Layout.jpeg Skyview Center Structure Design.jpeg Table of ContentsSkyview Park - Development Fees FY27 Proposed Budget | Fountain Hills Page 227Meeting Packet Page 230 of 295 Details Strategic Initiative:Improve public health, well-being, and safety of our community Type of Project:New Construction Benefit to Community This park will allow all residents to have outdoor spaces where they can enjoy stargazing in a dark sky-minded park, along with other activities like Tai Chi and Yoga during daylight hours or outdoor educational classes.  This park will also be interactive, with informational signage highlighting the unique vegetation along the new walking paths.   Supplemental Attachments SKYVIEW PARK - DESIGN LAYOUT THIS IS A PRELIMINARY DESIGN FOR THE LAYOUT OF THE PARK. THIS IS NEAR COMPLETION AND WILL ONLY CHANGE SLIGHTLY. Capital Cost FY2027 Budget $1.4M Total Budget (all years) $1.4M Project Total $1.4M Funding Sources FY2027 Budget $1.4M Total Budget (all years) $1.4M Project Total $1.4M Detailed Breakdown Category FY2027 Requested Future Budgeted Total Construction $1,400,000 $0 $1,400,000 Design/Engineering $0 $0 $0 Total $1,400,000 $0 $1,400,000 Detailed Breakdown Category FY2027 Requested Future Budgeted Total Parks Development Fee Fund (740)$1,400,000 $0 $1,400,000 Total $1,400,000 $0 $1,400,000 Table of ContentsSkyview Park - Development Fees FY27 Proposed Budget | Fountain Hills Page 228Meeting Packet Page 231 of 295 Operational Costs FY2027 Budget $4.5K Total Budget (all years) $22.5K Project Total $27K Detailed Breakdown Category FY2027 Requested FY2028 Requested FY2029 Requested FY2030 Requested FY2031 Requested Future Budgeted Total Other Impact $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $18,000 Services/Supplies $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $9,000 Total $4,500 $4,500 $4,500 $4,500 $4,500 $4,500 $27,000 Table of ContentsSkyview Park - Development Fees FY27 Proposed Budget | Fountain Hills Page 229Meeting Packet Page 232 of 295 Public Works FY27 - FY31 Public Works Projects (including Future Budgeted) Downtown Streetscape Improvement Program $10,218,000 48.20% Ashbrook Wash Slope Stabilization $5,250,000 24.77% Sidewalk Infill and Design $1,625,000 7.67% Shea Boulevard Widening - Eastbound from Palisades Blvd to Fountain Hills Blvd - Development Fees $1,000,000 4.72% Pedestrian Marked Crosswalks - Town-wide $750,000 3.54% Town Hall Campus Buildings - Roof Rehabilitation $500,000 2.36% Dam Sediment Removal and Improvements $500,000 2.36% Library/Museum/Community Center Air Handler Upgrades $400,000 1.89% Golden Eagle Impoundment Area Improvements - Phase II $325,000 1.53% Library/Museum Drainage Improvements $300,000 1.42% Guardrail Replacement Town- wide $250,000 1.18% Palm Tree Lighting and Electrical Upgrades on Avenue of the Fountains $80,000 0.38% $5M$5M $5M $7M$7M$7M $6M$6M $6M $3M$3M $3M $625K$625K $625K 000 2027 2028 2029 2030 2031 Future Budgeted 0 $3M $5M $8M Summary of Requests Project No. / Category FY2027 FY2028 FY2029 FY2030 FY2031 Future Budgeted Total E8506 Downtown Streetscape $2,003,000 $3,360,000 $2,483,000 $2,372,000 $0 $0 $10,218,000 Table of ContentsPublic Works FY27 Proposed Budget | Fountain Hills Page 230Meeting Packet Page 233 of 295 Project No. / Category FY2027 FY2028 FY2029 FY2030 FY2031 Future Budgeted Total Improvement Program D6070 Ashbrook Wash Slope Stabilization $250,000 $2,500,000 $2,500,000 $0 $0 $0 $5,250,000 S6061 Sidewalk Infill and Design $325,000 $325,000 $325,000 $325,000 $325,000 $0 $1,625,000 S6058 Shea Boulevard Widening - Eastbound from Palisades Blvd to Fountain Hills Blvd - Development Fees $1,000,000 $0 $0 $0 $0 $0 $1,000,000 S7002 Pedestrian Marked Crosswalks - Town- wide $150,000 $150,000 $150,000 $150,000 $150,000 $0 $750,000 F4046 Town Hall Campus Buildings - Roof Rehabilitation $500,000 $0 $0 $0 $0 $0 $500,000 D6068 Dam Sediment Removal and Improvements $100,000 $100,000 $100,000 $100,000 $100,000 $0 $500,000 F4047 Library/Museum/Co mmunity Center Air Handler Upgrades $400,000 $0 $0 $0 $0 $0 $400,000 D6057 Golden Eagle Impoundment Area Improvements - Phase II $325,000 $0 $0 $0 $0 $0 $325,000 D6069 Library/Museum Drainage Improvements $0 $300,000 $0 $0 $0 $0 $300,000 S6068 Guardrail Replacement Town-wide $50,000 $50,000 $50,000 $50,000 $50,000 $0 $250,000 E8509 Palm Tree Lighting and Electrical Upgrades on Avenue of the Fountains $0 $80,000 $0 $0 $0 $0 $80,000 Total Summary of Requests $5,103,000 $6,865,000 $5,608,000 $2,997,000 $625,000 $0 $21,198,000 Table of ContentsPublic Works FY27 Proposed Budget | Fountain Hills Page 231Meeting Packet Page 234 of 295 Ashbrook Wash Slope Stabilization Overview Request Owner David Janover, Town Engineer Department Public Works Type Capital Improvement Project Number D6070 Estimated Start Date 07/1/2026 Estimated Completion Date 06/30/2029 Project Location Description Over the past several years, the Town has been reshaping and building up the side slopes within Ashbrook Wash between Hampstead Avenue and Fountain Hills Boulevard. This project continues those efforts by stabilizing the remaining slopes, completing the opposite bank, and implementing erosion control measures such as gabion baskets or other suitable materials. The project will be designed to reduce erosion, limit lateral channel migration, and improve flood protection. The Town intends to pursue grant funding from the Flood Control District of Maricopa County to support construction costs. This capital request is for a 3-year multi-year project, contingent on the Town obtaining grant funding. If successful in obtaining the grant for 75% of the total project costs, staff will begin design in FY2027 for $250,000, with projected construction costs of $2.5 million per year over the following two years, with total budgeted project costs of $5.25 million Images Ashbrook Wash.jpg Details Strategic Initiative:Maintain current infrastructure and prepare for emerging trends Type of Project:Drainage Improvement Benefit to Community The project reduces flood risk to adjacent roads and residential areas by strengthening the Wash banks and improving flow capacity during storm events. Stabilizing the slopes helps prevent lateral channel migration, protecting public infrastructure Table of ContentsAshbrook Wash Slope Stabilization FY27 Proposed Budget | Fountain Hills Page 232Meeting Packet Page 235 of 295 and private property. The investment supports long-term resilience, minimizes future maintenance needs, and leverages grant funding to maximize the benefit to the community. Capital Cost FY2027 Budget $250K Total Budget (all years) $5.25M Project Total $5.25M Funding Sources FY2027 Budget $250K Total Budget (all years) $5.25M Project Total $5.25M Operational Costs FY2027 Budget $0 Total Budget (all years) $5K Project Total $5K Detailed Breakdown Category FY2027 Requested FY2028 Requested FY2029 Requested Future Budgeted Total Construction $0 $2,500,000 $2,500,000 $0 $5,000,000 Design/Engineering $250,000 $0 $0 $0 $250,000 Total $250,000 $2,500,000 $2,500,000 $0 $5,250,000 Detailed Breakdown Category FY2027 Requested FY2028 Requested FY2029 Requested Future Budgeted Total Grants $187,500 $1,875,000 $1,875,000 $0 $3,937,500 Capital Project Fund (600)$62,500 $625,000 $625,000 $0 $1,312,500 Total $250,000 $2,500,000 $2,500,000 $0 $5,250,000 Detailed Breakdown Category FY2030 Requested FY2031 Requested Future Budgeted Total Service/Supplies $2,500 $2,500 $0 $5,000 Total $2,500 $2,500 $0 $5,000 Table of ContentsAshbrook Wash Slope Stabilization FY27 Proposed Budget | Fountain Hills Page 233Meeting Packet Page 236 of 295 Dam Sediment Removal and Improvements Overview Request Owner David Janover, Town Engineer Department Public Works Type Capital Improvement Project Number D6068 Estimated Start Date 07/1/2025 Estimated Completion Date 06/30/2031 Description This multi-year program, budgeted at $100,000 per year, aims to enhance the structural integrity and operational efficiency of the Town's ten jurisdictional dams, consisting of: Hesperus Dam Aspen Dam North Heights Dam Golden Eagle Park Dam Sunridge Canyon Dam Fountain Lake Dam Thunder Ridge Dam Crystal Ridge Dam Stoneridge Dam Botanical Garden Dam The project encompasses the following key components: Structural Repairs: The inlet and outlet structures of the dams are critical for regulating water flow and ensuring safety. The project will assess and repair any damage or wear in these structures, addressing issues such as erosion, concrete degradation, and mechanical failures Sediment Removal: Over time, sediment accumulation can impair dam functionality and reduce water storage capacity. This project will involve the systematic removal of accumulated sediment from each of the dams, restoring Table of ContentsDam Sediment Removal and Improvements FY27 Proposed Budget | Fountain Hills Page 234Meeting Packet Page 237 of 295 their original capacity and ensuring optimal performance Images DJI_20241212085608_0061_D.JPG Details Strategic Initiative:Improve public health, well-being, and safety of our community Benefit to Community The Dam Sediment Removal and Maintenance project ensures the safety and reliability of the Town's dams by repairing critical structures, removing sediment, and restoring capacity.  This enhances flood protection, supports water management, and preserves local ecosystems. By investing in this essential infrastructure, the Town protects public safety, promotes environmental sustainability, and ensures long-term benefits for the community. Capital Cost FY2027 Budget $100K Total Budget (all years) $500K Project Total $500K Funding Sources FY2027 Budget $100K Total Budget (all years) $500K Project Total $500K Detailed Breakdown Category FY2027 Requested FY2028 Requested FY2029 Requested FY2030 Requested FY2031 Requested Future Budgeted Total Construction $100,000 $100,000 $100,000 $100,000 $100,000 $0 $500,000 Total $100,000 $100,000 $100,000 $100,000 $100,000 $0 $500,000 Detailed Breakdown Category FY2027 Requested FY2028 Requested FY2029 Requested FY2030 Requested FY2031 Requested Future Budgeted Total Capital Project Fund (600)$100,000 $100,000 $100,000 $100,000 $100,000 $0 $500,000 Total $100,000 $100,000 $100,000 $100,000 $100,000 $0 $500,000 Table of ContentsDam Sediment Removal and Improvements FY27 Proposed Budget | Fountain Hills Page 235Meeting Packet Page 238 of 295 Downtown Streetscape Improvement Program Overview Request Owner David Janover, Town Engineer Department Public Works Type Capital Improvement Project Number E8506 Estimated Start Date 07/1/2025 Estimated Completion Date 06/30/2030 Project Location Description The Downtown Streetscape Improvement Program includes the design and construction of enhancements to Verde River Drive, Parkview Avenue and the East and West halves of the Avenue of the Fountains. Spanning five years, this Capital Program aligns with the Town Council-approved Downtown Strategy (approved in September 2024) to revitalize the Downtown area by improving pedestrian access, aesthetics and overall functionality.  The Town received MAG Design Assistance Grant funding of about $94,300 towards design.  Improvements will include: Installing new sidewalk along Verde River Drive and Parkview Avenue Widening sidewalks along the Avenue to accommodate outdoor cafe seating Installing shade trees, new streetlights, pedestrian lights and hanging aesthetic lights The total 5-year project budget for the four project phases is $10,733,000, which is tabulated below. Table of ContentsDowntown Streetscape Improvement Program FY27 Proposed Budget | Fountain Hills Page 236Meeting Packet Page 239 of 295 Project Location Design Cost Construction Cost Total Cost Verde River Dr $201,000 $2,003,000 $2,204,000 Parkview Ave $314,000 $3,135,000 $3,449,000 East ½ of Avenue $225,000 $2,245,000 $2,470,000 West ½ of Avenue $238,000 $2,372,000 $2,610,000 Total:$978,000 $9,755,000 $10,733,000 The work is intended to be completed over five (5) fiscal years as outlined below: Fiscal Year Project Scope Design Construction Total FY 26 Design of Verde River Dr AND Design of Parkview Ave $515,000 $ -$515,000 FY 27 Construction of Verde River Dr $ -$2,003,000 $2,003,000 FY 28 Construction of Parkview Ave AND Design of East 1/2 of Avenue $225,000 $3,135,000 $3,360,000 FY 29 Construction of East 1/2 of Avenue AND Design of West 1/2 $238,000 $2,245,000 $2,483,000 FY 30 Construction of West 1/2 of Avenue $ -$2,372,000 $2,372,000 Table of ContentsDowntown Streetscape Improvement Program FY27 Proposed Budget | Fountain Hills Page 237Meeting Packet Page 240 of 295 Images Streetscape Example Before.JPG Streetscape Example After.JPG Verde-Parkview Intersection Before.JPG Verde-Parkview Intersection After.JPG Parkview Ave Before.JPG Parkview Ave After.JPG Details Strategic Initiative:Targeted collaborative economic development Type of Project:Other Benefit to Community The Downtown Streetscape Improvements Program will significantly enhance the vibrancy, safety, and accessibility of the Downtown area.  The project’s focus on beautification through improved landscaping, lighting, and functional design will foster a welcoming atmosphere, attract more visitors, and encourage economic growth. By investing in a revitalized Downtown, the community will benefit from a modern, engaging, and safer public space that enhances quality of life and supports long-term sustainability. By potentially narrowing travel lanes along the Avenue to accommodate wider sidewalks, the project will create a more pedestrian-friendly environment, promote outdoor activity, and support local businesses. These changes will also act as a natural traffic calming measure, reducing vehicle speeds and improving safety for all road users, including cyclists and pedestrians. Capital Cost FY2027 Budget $2M Total Budget (all years) $10.2M Project Total $10.2M Detailed Breakdown Category FY2027 Requested FY2028 Requested FY2029 Requested FY2030 Requested Future Budgeted Total Construction $2,003,000 $3,135,000 $2,245,000 $2,372,000 $0 $9,755,000 Design/Engineering $0 $225,000 $238,000 $0 $0 $463,000 Total $2,003,000 $3,360,000 $2,483,000 $2,372,000 $0 $10,218,000 Table of ContentsDowntown Streetscape Improvement Program FY27 Proposed Budget | Fountain Hills Page 238Meeting Packet Page 241 of 295 Funding Sources FY2027 Budget $2M Total Budget (all years) $10.2M Project Total $10.2M Operational Costs FY2027 Budget $0 Total Budget (all years) $30K Project Total $50K Detailed Breakdown Category FY2027 Requested FY2028 Requested FY2029 Requested FY2030 Requested Future Budgeted Total Capital Project Fund (600)$2,003,000 $3,360,000 $2,483,000 $2,372,000 $0 $10,218,000 Grants $0 $0 $0 $0 $0 $0 Total $2,003,000 $3,360,000 $2,483,000 $2,372,000 $0 $10,218,000 Detailed Breakdown Category FY2028 Requested FY2029 Requested FY2030 Requested Future Budgeted Total Service/Supplies $5,000 $10,000 $15,000 $20,000 $50,000 Total $5,000 $10,000 $15,000 $20,000 $50,000 Table of ContentsDowntown Streetscape Improvement Program FY27 Proposed Budget | Fountain Hills Page 239Meeting Packet Page 242 of 295 Golden Eagle Impoundment Area Improvements - Phase II Overview Request Owner David Janover, Town Engineer Department Public Works Type Capital Improvement Project Number D6057 Estimated Start Date 09/13/2018 Estimated Completion Date 06/30/2027 Project Location Description In FY26, drainage channel improvements improvements were completed within Golden Eagle Park.  The next/last phase of the project will include modification of trash racks on Golden Eagle dam inlets, addressing the face of the dam, inlet, throughput and outlet infrastructure.  During FY26, design for Phase II improvements was underway. The Town is also the recipient of grant funding through the Small Projects Assistance Program of the Flood Control District of Maricopa County (FCDMC). This grant funding will be applied to the this Phase II portion of the project.  The FCDMC will fund 75% of the design and construction cost, up to $500,000, through June 30, 2027. The FCDMC estimated cost share for dam improvements is $243,750, with the Town match of up to $81,250, and is subject to change, maintaining the 75% / 25% FCDMC/Town proportional match.  Images Golden Eagle Dam.jpeg Table of ContentsGolden Eagle Impoundment Area Improvements - Phase II FY27 Proposed Budget | Fountain Hills Page 240Meeting Packet Page 243 of 295 Details Strategic Initiative:Long-term financial stability of community infrastructure, environmental, and social resources Type of Project:Drainage Improvement Benefit to Community The Golden Eagle impoundment area receives storm runoff from three washes - Ashbrook Wash, Bristol Wash and Cloudburst Wash. The 100-year storm rainfall intensity values have increased in the northeastern area of Maricopa County. Runoff values have increased, due to increased upstream development. Runoff time of concentration has accelerated, due to increased upstream development. The net change as a result of noted changes above have increased the amount of flow entering the impoundment area (this includes the park improvement areas, ball fields, picnic ramada area, etc.) and requires major modifications to the drainage courses. This project will reduce the risk of flooding and damage to the ballfields and park amenities, which has occurred in the past. Capital Cost FY2027 Budget $325K Total Budget (all years) $325K Project Total $325K Funding Sources FY2027 Budget $325K Total Budget (all years) $325K Project Total $325K Detailed Breakdown Category FY2027 Requested Future Budgeted Total Construction $325,000 $0 $325,000 Total $325,000 $0 $325,000 Detailed Breakdown Category FY2027 Requested Future Budgeted Total Grants $243,750 $0 $243,750 Capital Project Fund (600)$81,250 $0 $81,250 Total $325,000 $0 $325,000 Table of ContentsGolden Eagle Impoundment Area Improvements - Phase II FY27 Proposed Budget | Fountain Hills Page 241Meeting Packet Page 244 of 295 Guardrail Replacement Town-wide Overview Request Owner David Janover, Town Engineer Department Public Works Type Capital Improvement Project Number S6068 Estimated Start Date 07/1/2022 Estimated Completion Date 06/30/2031 Description The Town owns and maintains 10,000 linear feet of guardrail. Due to Federal guidelines changing in 2014, several segments of pre and post-incorporation guardrail are no longer in compliance with Federal highway standards. In 2022, an assessment of the Town's guardrails was performed, and this project will follow the recommendations of that assessment. During FY26, guardrail was upgraded along McDowell Mountain Road and Palisades Boulevard. This request is a multi-year capital improvement program, budgeted at $50,000 per year. Images Guardrail Replacement Details Strategic Initiative:Improve public health, well-being, and safety of our community Type of Project:Other Benefit to Community Town staff would like to be proactive in implementing guardrail improvements to meet FHWA and ADOT guidelines. Currently, guardrail within the Town does not meet the FHWA 31" minimum height requirements. ADOT provided the Town a memo dated May 3, 2017, dictating that existing guardrail 26.5" or lower in height should be replaced in conjunction with Table of ContentsGuardrail Replacement Town-wide FY27 Proposed Budget | Fountain Hills Page 242Meeting Packet Page 245 of 295 major pavement or roadway improvements. Guardrail along Palisades does not meet the specifications dictated in this ADOT memo and that guardrail will be placed first on the priority list of guardrail upgrades.  Capital Cost FY2027 Budget $50K Total Budget (all years) $250K Project Total $250K Funding Sources FY2027 Budget $50K Total Budget (all years) $250K Project Total $250K Operational Costs FY2027 Budget $1K Total Budget (all years) $5K Project Total $5K Detailed Breakdown Category FY2027 Requested FY2028 Requested FY2029 Requested FY2030 Requested FY2031 Requested Future Budgeted Total Construction $50,000 $50,000 $50,000 $50,000 $50,000 $0 $250,000 Total $50,000 $50,000 $50,000 $50,000 $50,000 $0 $250,000 Detailed Breakdown Category FY2027 Requested FY2028 Requested FY2029 Requested FY2030 Requested FY2031 Requested Future Budgeted Total Capital Project Fund (600)$50,000 $50,000 $50,000 $50,000 $50,000 $0 $250,000 Total $50,000 $50,000 $50,000 $50,000 $50,000 $0 $250,000 Detailed Breakdown Category FY2027 Requested FY2028 Requested FY2029 Requested FY2030 Requested FY2031 Requested Future Budgeted Total Other Impact $1,000 $1,000 $1,000 $1,000 $1,000 $0 $5,000 Total $1,000 $1,000 $1,000 $1,000 $1,000 $0 $5,000 Table of ContentsGuardrail Replacement Town-wide FY27 Proposed Budget | Fountain Hills Page 243Meeting Packet Page 246 of 295 Library/Museum Drainage Improvements Overview Request Owner David Janover, Town Engineer Department Public Works Type Capital Improvement Project Number D6069 Estimated Start Date 07/1/2027 Estimated Completion Date 06/30/2028 Project Location Description This project will construct drainage improvements at the Library/Museum facility on the Town Campus, to establish positive stormwater flow away from the building and adjacent walkways. The work will be phased, with design and permitting completed during FY26 (funded by Facilities Reserves), followed by construction in FY28. Improvements will include revised grading adjacent to the structure, removal and replacement of existing curb and gutter and regrading of the adjacent roadway to reduce stormwater ponding and water intrusion. Images Library Grading.jpg Library Grading - Preliminary Plan.jpg Details Strategic Initiative:Maintain current infrastructure and prepare for emerging trends Type of Project:Improvement Benefit to Community The project protects a major public facility from future flooding, reduces long-term maintenance and repair costs, and enhances visitor safety during storm events. Improving drainage preserves the Town’s investment in the Library/Museum complex and ensures reliable access to educational, cultural, and community services. Table of ContentsLibrary/Museum Drainage Improvements FY27 Proposed Budget | Fountain Hills Page 244Meeting Packet Page 247 of 295 Capital Cost FY2027 Budget $0 Total Budget (all years) $300K Project Total $300K Funding Sources FY2027 Budget $0 Total Budget (all years) $300K Project Total $300K Detailed Breakdown Category FY2028 Requested Future Budgeted Total Construction $300,000 $0 $300,000 Total $300,000 $0 $300,000 Detailed Breakdown Category FY2028 Requested Future Budgeted Total Facilities Reserve Fund $300,000 $0 $300,000 Total $300,000 $0 $300,000 Table of ContentsLibrary/Museum Drainage Improvements FY27 Proposed Budget | Fountain Hills Page 245Meeting Packet Page 248 of 295 Library/Museum/Community Center Air Handler Upgrades Overview Request Owner David Janover, Town Engineer Department Public Works Type Capital Improvement Project Number F4047 Estimated Start Date 07/1/2026 Estimated Completion Date 06/30/2027 Project Location Description This project replaces and upgrades the existing air handling units serving the Library, Museum, and Community Center to improve HVAC performance, reliability, and energy efficiency. The scope will include equipment replacement, controls integration, and any required electrical or mechanical modifications to support the new units. Work will be coordinated to minimize disruption to facility operations and public use. Images Library-Museum- Community Center Air Handlers.jpg Details Strategic Initiative:Maintain current infrastructure and prepare for emerging trends Type of Project:Improvement Benefit to Community Upgrading the air handling equipment will improve indoor comfort and operational reliability in heavily used public facilities. Increased energy efficiency reduces operating costs and supports sustainability goals, while modernized systems extend the Table of ContentsLibrary/Museum/Community Center Air Handler Upgrades FY27 Proposed Budget | Fountain Hills Page 246Meeting Packet Page 249 of 295 useful life of mechanical infrastructure. The project ensures the community continues to receive reliable, high-quality services in safe, accessible public spaces. Capital Cost FY2027 Budget $400K Total Budget (all years) $400K Project Total $400K Funding Sources FY2027 Budget $400K Total Budget (all years) $400K Project Total $400K Detailed Breakdown Category FY2027 Requested Future Budgeted Total Construction $400,000 $0 $400,000 Total $400,000 $0 $400,000 Detailed Breakdown Category FY2027 Requested Future Budgeted Total Facilities Reserve Fund $400,000 $0 $400,000 Total $400,000 $0 $400,000 Table of ContentsLibrary/Museum/Community Center Air Handler Upgrades FY27 Proposed Budget | Fountain Hills Page 247Meeting Packet Page 250 of 295 Palm Tree Lighting and Electrical Upgrades on Avenue of the Fountains Overview Request Owner David Janover, Town Engineer Department Public Works Type Capital Improvement Project Number E8509 Estimated Start Date 07/1/2027 Estimated Completion Date 06/30/2028 Project Location Description This project upgrades the electrical infrastructure supporting the palm tree lighting along the Avenue of the Fountains. Work will include replacement or repair of underground electrical conduit, junction boxes, and lighting circuits, as well as installation of new, commercial-grade energy-efficient fixtures. The improvements will ensure reliable illumination of the palm trees and support future streetscape enhancements. This project is planned for design and construction in FY2028 in the 5-year CIP outlook. Images Palm Tree Lighting.jpg Details Strategic Initiative:Maintain current infrastructure and prepare for emerging trends Type of Project:Other Benefit to Community Reliable palm tree lighting enhances the signature character of the Avenue of the Fountains and contributes to a welcoming downtown environment. Electrical upgrades improve reliability, reduce maintenance costs, and support energy efficiency. The project strengthens the Town’s investment in downtown aesthetics, encourages evening activity, and enhances community events along the Avenue. Table of ContentsPalm Tree Lighting and Electrical Upgrades on Avenue of the Fountains FY27 Proposed Budget | Fountain Hills Page 248Meeting Packet Page 251 of 295 Capital Cost FY2027 Budget $0 Total Budget (all years) $80K Project Total $80K Funding Sources FY2027 Budget $0 Total Budget (all years) $80K Project Total $80K Operational Costs FY2027 Budget $0 Total Budget (all years) $3K Project Total $3K Detailed Breakdown Category FY2028 Requested Future Budgeted Total Construction $70,000 $0 $70,000 Design/Engineering $10,000 $0 $10,000 Total $80,000 $0 $80,000 Detailed Breakdown Category FY2028 Requested Future Budgeted Total Capital Project Fund (600)$80,000 $0 $80,000 Total $80,000 $0 $80,000 Detailed Breakdown Category FY2029 Requested FY2030 Requested FY2031 Requested Future Budgeted Total Service/Supplies $1,000 $1,000 $1,000 $0 $3,000 Total $1,000 $1,000 $1,000 $0 $3,000 Table of ContentsPalm Tree Lighting and Electrical Upgrades on Avenue of the Fountains FY27 Proposed Budget | Fountain Hills Page 249Meeting Packet Page 252 of 295 Pedestrian Marked Crosswalks - Town-wide Overview Request Owner David Janover, Town Engineer Department Public Works Type Capital Improvement Project Number S7002 Estimated Start Date 07/1/2024 Estimated Completion Date 06/30/2031 Description This project designs and constructs pedestrian crosswalks and associated signage where appropriate town-wide.  In addition to the crosswalk striping, ADA-compliant curb ramps and refuge islands are constructed where suitable. Crosswalks in the Downtown area of Town will be the highest priority, followed by arterials, collectors and local roads. During FY26, crosswalks at the following locations were installed: El Lago Mid-Block Crossing between Saguaro Blvd & La Montana Dr Golden Eagle Blvd & Brittlebush Dr La Montana Dr & Cambria Dr La Montana & Hamilton Dr Proposed crosswalks in FY27 and beyond include the design and/or construction of: Avenue of the Fountains & Keith McMahon Dr This request is for a multi-year capital project budgeted for $150,000 annually over the next five fiscal years. Images Golden Eagle Blvd - Brittlebush Crosswalk.jpg La Montana - Cambria Crosswalk.jpg Table of ContentsPedestrian Marked Crosswalks - Town-wide FY27 Proposed Budget | Fountain Hills Page 250Meeting Packet Page 253 of 295 Details Strategic Initiative:Improve public health, well-being, and safety of our community Type of Project:Other Benefit to Community Pedestrian crossings and proper signage alert motorists to the possible presence of pedestrians, increasing awareness. On roadway facilities with higher traffic volumes, number of lanes and speeds will require a combination of signs, markings, and other enhancements to give the pedestrian(s) comfort while crossing. Capital Cost FY2027 Budget $150K Total Budget (all years) $750K Project Total $750K Funding Sources FY2027 Budget $150K Total Budget (all years) $750K Project Total $750K Detailed Breakdown Category FY2027 Requested FY2028 Requested FY2029 Requested FY2030 Requested FY2031 Requested Future Budgeted Total Construction $150,000 $150,000 $150,000 $150,000 $150,000 $0 $750,000 Total $150,000 $150,000 $150,000 $150,000 $150,000 $0 $750,000 Detailed Breakdown Category FY2027 Requested FY2028 Requested FY2029 Requested FY2030 Requested FY2031 Requested Future Budgeted Total Capital Project Fund (600)$150,000 $150,000 $150,000 $150,000 $150,000 $0 $750,000 Total $150,000 $150,000 $150,000 $150,000 $150,000 $0 $750,000 Table of ContentsPedestrian Marked Crosswalks - Town-wide FY27 Proposed Budget | Fountain Hills Page 251Meeting Packet Page 254 of 295 Shea Boulevard Widening - Eastbound from Palisades Blvd to Fountain Hills Blvd - Development Fees Overview Request Owner David Janover, Town Engineer Department Public Works Type Capital Improvement Project Number S6058 Estimated Start Date 07/1/2019 Estimated Completion Date 06/30/2027 Project Location Description This project will design and construct the expansion of a segment of Shea Boulevard.  This segment will complete eastbound Shea, between Palisades Blvd and Fountain Hills Blvd.  The ultimate build-out when completed, will widen Shea Boulevard to six lanes.   Design of the expansion of this segment was completed in FY25, and construction was started in FY26.  Staff are requesting $1M in carry- over budget to complete the project in FY27. The future segments of the project (Project S7001) will widen Shea Boulevard between Fountain Hills Boulevard and Technology Drive, which is projected to begin sometime after FY2031 aligning with MAG Prop 479 funding for the future phase of the project. Images Shea Blvd Widening Phase 1 Table of ContentsShea Boulevard Widening - Eastbound from Palisades Blvd to Fountain Hills Blvd - Development Fees FY27 Proposed Budget | Fountain Hills Page 252Meeting Packet Page 255 of 295 Details Strategic Initiative:Maintain current infrastructure and prepare for emerging trends Type of Project:New Road Benefit to Community Shea Boulevard is a road of regional significance and has an average daily traffic volume of 34,600 vehicles at Palisades Boulevard. This project is a MAG Proposition 400 project that is regionally funded through MAG, which will provide for 70% of the project funding with a 30% match from the Town. The Town also will be able to use Development Impact Fees for the Town match portion.  This project will increase the vehicle capacity on Shea Blvd, addressing additional usage tied to population growth. Capital Cost FY2027 Budget $1M Total Budget (all years) $1M Project Total $1M Funding Sources FY2027 Budget $1M Total Budget (all years) $1M Project Total $1M Detailed Breakdown Category FY2027 Requested Future Budgeted Total Construction $1,000,000 $0 $1,000,000 Total $1,000,000 $0 $1,000,000 Detailed Breakdown Category FY2027 Requested Future Budgeted Total Grants $700,000 $0 $700,000 Streets Development Fee Fund (730)$300,000 $0 $300,000 Capital Project Fund (600)$0 $0 $0 Total $1,000,000 $0 $1,000,000 Table of ContentsShea Boulevard Widening - Eastbound from Palisades Blvd to Fountain Hills Blvd - Development Fees FY27 Proposed Budget | Fountain Hills Page 253Meeting Packet Page 256 of 295 Sidewalk Infill and Design Overview Request Owner David Janover, Town Engineer Department Public Works Type Capital Improvement Project Number S6061 Estimated Start Date 07/1/2022 Estimated Completion Date 06/30/2031 Project Location Description This project provides design and construction for ADA-compliant concrete sidewalk and curb ramps where gaps currently exist. The new sidewalks will provide connectivity to improve the walkability in the Town, and supports the Town’s Active Transportation Plan and the 2021 Strategic Plan for creating a walkable community. In recent years, this project constructed infill sidewalks and/or ADA-compliant ramps at the following locations: FY 25 FY 26 Tioga Drive Sidewalk Golden Eagle Blvd and Brittlebush Lane Eagle Mountain Pkwy Sidewalk and mid-block Crosswalk La Montana Dr and Cambria Dr La Montana Sidewalk at Bashas - Design Hamilton Dr, North of La Montana Dr Saguaro Blvd between Hawk Dr and Quinto Dr - sidewalk La Montana Dr, between Hamilton Dr and Saguaro Blvd In FY27, the Town plans to install sidewalk on Saguaro Boulevard between Hawk Drive and Oasis Drive. This capital request is an ongoing multi-year project budgeted for $325,000 each of the next five fiscal years. Table of ContentsSidewalk Infill and Design FY27 Proposed Budget | Fountain Hills Page 254Meeting Packet Page 257 of 295 Images Sidewalk Infill Photo.JPG Hamilton Sidewalk Infill.jpg Details Strategic Initiative:Improve public health, well-being, and safety of our community Type of Project:Other Benefit to Community Through the 2021 Active Transportation Plan planning process, citizens were asked to help identify key gaps in the sidewalk system and where the priorities should be for improvements.  Installing sidewalks where gaps currently exist, allows pedestrians to use the sidewalk instead of walking in the adjacent street, reducing risk and creating a safer, more walkable community. Capital Cost FY2027 Budget $325K Total Budget (all years) $1.63M Project Total $1.63M Funding Sources FY2027 Budget $325K Total Budget (all years) $1.63M Project Total $1.63M Detailed Breakdown Category FY2027 Requested FY2028 Requested FY2029 Requested FY2030 Requested FY2031 RequestedFuture Budgeted Total Construction $225,000 $225,000 $225,000 $225,000 $225,000 $0 $1,125,000 Design/Engineering $100,000 $100,000 $100,000 $100,000 $100,000 $0 $500,000 Total $325,000 $325,000 $325,000 $325,000 $325,000 $0 $1,625,000 Detailed Breakdown Category FY2027 Requested FY2028 Requested FY2029 Requested FY2030 Requested FY2031 RequestedFuture Budgeted Total Capital Project Fund (600)$325,000 $325,000 $325,000 $325,000 $325,000 $0 $1,625,000 Total $325,000 $325,000 $325,000 $325,000 $325,000 $0 $1,625,000 Table of ContentsSidewalk Infill and Design FY27 Proposed Budget | Fountain Hills Page 255Meeting Packet Page 258 of 295 Town Hall Campus Buildings - Roof Rehabilitation Overview Request Owner David Janover, Town Engineer Department Public Works Type Capital Improvement Project Number F4046 Estimated Start Date 07/1/2025 Estimated Completion Date 06/30/2027 Project Location Description On February 24, 2025, the Town's Consultant completed a comprehensive roof assessment for the Town Hall, Community Center, Library/Museum, and Central Plant buildings. The evaluation identified significant issues with the existing low-sloped polyurethane foam roofing systems, including widespread blistering, cracking, and failed coatings. Additionally, electrical penetrations were found to lack proper flashing jacks, contributing to potential water intrusion. Debris buildup at roof drains further exacerbates drainage inefficiencies, while deteriorated line set insulation presents additional vulnerabilities. To address these concerns, during FY26, this project developed signed and sealed construction drawings and specifications for new roof systems that ensure long-term protection. The design incorporates necessary repairs, including a complete roof coating system replacement, proper flashing installation at penetrations, and improved drainage solutions. By implementing these upgrades in FY27, the Town will enhance the structural integrity of its facilities and reduce future maintenance costs associated with water damage and roofing failures. Images Roof.png Table of ContentsTown Hall Campus Buildings - Roof Rehabilitation FY27 Proposed Budget | Fountain Hills Page 256Meeting Packet Page 259 of 295 Details Strategic Initiative:Maintain current infrastructure and prepare for emerging trends Type of Project:Improvement Benefit to Community This project will extend the lifespan of key municipal buildings, safeguarding essential services housed within the Town Hall, Community Center, Library/Museum, and Central Plant. A properly designed and maintained roofing system will improve energy efficiency, reduce long-term repair costs, and provide a safe, leak-free environment for Town staff and residents utilizing these public facilities. Capital Cost FY2027 Budget $500K Total Budget (all years) $500K Project Total $500K Funding Sources FY2027 Budget $500K Total Budget (all years) $500K Project Total $500K Detailed Breakdown Category FY2027 Requested Future Budgeted Total Construction $500,000 $0 $500,000 Design/Engineering $0 $0 $0 Total $500,000 $0 $500,000 Detailed Breakdown Category FY2027 Requested Future Budgeted Total Capital Project Fund (600)$500,000 $0 $500,000 Total $500,000 $0 $500,000 Table of ContentsTown Hall Campus Buildings - Roof Rehabilitation FY27 Proposed Budget | Fountain Hills Page 257Meeting Packet Page 260 of 295 FY2027 Proposed Budget Work Session Paul Soldinger, Chief Financial Officer April 14, 2026 Meeting Packet Page 261 of 295 FY2027 Proposed Budget Considerations Meeting Packet Page 262 of 295 FY2027 Budget Remaining Timeline •Proposed Budget Work Session – 4/14/2026 •FY27 Proposed Budget Book is online for public •Council discusses proposed budget and provides direction for Tentative budget the following month •Tentative Budget Adoption – 5/5/2026 Regular Meeting (Public Hearing) •Tentative Budget sets the maximum amount the Town may budget for FY2027 •Final Budget Adoption – 6/2/2026 Regular Meeting (Public Hearing) •Council considers adoption of final budget for FY2027 Town operations Budget Timeline Meeting Packet Page 263 of 295 Projected Fund Balances – Fiscal Year 2027 Beginning of Year Projected Fund Balances General Fund Streets Fund Cap Projects Fund Facilities Reserve Fund All Other Funds* About $15.0M About $6.1M About $9.0M About $8.2M including $6.7M for Future Lake Liner Project About $8.5M *Other funds include Economic Dev, Tourism, Downtown, Impact Fees, Internal Service Funds **The Town projects to have about $47 million of combined fund balances to start FY2027 Meeting Packet Page 264 of 295 FY2027 Projected Revenues by Fund League is projecting a drop in FY27 HURF revenues Prior year had higher budget for IDSDC grant application Less grant funded capital projects New Impact Fee Schedule Total Projected Revenues - $38.5M Meeting Packet Page 265 of 295 Expenditure Limitation for FY2027 FY27 Expenditure Limit $38,178,069 FY27 Proposed Budget $49,205,064 Less Grants (1,760,660) Less HURF (1,810,740) Less Investment Income (840,962) Less Other Exclusions (2,175,700) Less Using Prior Years’ Carryforward (4,438,934) FY27 Expenditures Subject to Limit $38,178,068 $1 FY27 - $6.6M exclusions Budgeted to be $1 under the FY2027 expenditure limitation Meeting Packet Page 266 of 295 Expenditure Considerations – General Fund FY27 Projected GF Revenues: $26.8M Department Expenditures: $25.8M $1.00M$1.00M General Fund Contingency Meeting Packet Page 267 of 295 General Fund Contingency Overview •Contingency •Included in General Government (General Fund) •Provides budget authority for unforeseen expenditures only if projected revenues are received •$1.00M General Fund contingency included in FY2027 Proposed Budget Meeting Packet Page 268 of 295 FY27 Proposed Budget – All Funds Note: Expenditures Budgeted for FY 2027 include proposed supplements in the following slides. Meeting Packet Page 269 of 295 Recommended Supplements Meeting Packet Page 270 of 295 Ongoing Supplements Ongoing Requests Request Title Department Funding Source FY27 Requests Manager Recommendation Offsets General Fund: BA-100-03 ChatGPT Organization Subscription Administration General Fund 4,500 $4,500 $0 BA-100-06 Staffing for Inflatables at Events Comm Services General Fund 8,300 8,300 0 Total General Fund: $12,800 $12,800 $0 Economic Development Funds: BA-310-01 Fountain Hills Promotional Material Econ Dev Econ Dev Fund $10,000 $10,000 $0 BA-300-01 Downtown Fund - Avenue of the Fountains Street Banners Replacement Econ Dev Downtown Fund 15,000 15,000 0 BA-300-02 Downtown Fund - Downtown Videos Econ Dev Downtown Fund 10,000 10,000 0 Total Economic Development Funds: $35,000 $35,000 $0 Total All Funds: $47,800 $47,800 $0 Meeting Packet Page 271 of 295 One-Time Supplements One-Time Requests Request Title Department Funding Source FY27 Requests Manager Recommendation Offsets Downtown Strategy Fund: 300-01 Verde River Banners Econ Dev Downtown Fund $10,000 $10,000 $0 300-02 Performance Pad for Avenue Linear Park Water Features Public Works Downtown Fund 50,000 40,000 0 Total Downtown Strategy Fund: $60,000 $50,000 $0 Court Enhancement Fund: 420-02 Judge Office- Refresh Muni Court Court Enh Fund $20,000 $10,000 $0 Total Court Enhancement Fund: $20,000 $10,000 $0 Vehicle Replacement Fund: 810-01 #156 Vehicle Replacement Public Works Vehicle Repl Fund $55,000 $55,000 $0 810-02 #158 Vehicle Replacement Public Works Vehicle Repl Fund 60,000 60,000 0 810-03 #159 Vehicle Replacement Comm Services Vehicle Repl Fund 50,000 50,000 0 Total Vehicle Replacement Fund: $165,000 $165,000 $0 Total All Funds: $245,000 $225,000 $0 Meeting Packet Page 272 of 295 Personnel Supplements * Personnel Requests Request Title Department Funding Source FY27 Requests Manager Recommendation Offsets General Fund: BAP-100-01 Groundskeeper I - Part Time Comm Services General Fund $31,142 $31,142 $0 BAP-100-02 New - Deputy Town Clerk Admin (Clerk) General Fund 124,133 124,133 0 BAP-100-04 Firefighters - 1 in FY27 (2 Additional in Future) Fire Department General Fund 127,868 127,868 0 Total General Fund: $283,143 $283,143 $0 Meeting Packet Page 273 of 295 General Fund Meeting Packet Page 274 of 295 General Fund – All Departments Meeting Packet Page 275 of 295 General Fund – Administration Department Meeting Packet Page 276 of 295 General Fund – Administration Department (By Division) 8 of 9 Divisions are in General Fund (Economic Development Division paid separately out of 3 other funds) Meeting Packet Page 277 of 295 General Fund – General Government Dept Community Contracts budget reduced to reflect new CASS contract Meeting Packet Page 278 of 295 General Fund – Municipal Court Dept Meeting Packet Page 279 of 295 General (& Streets) Fund(s) – Public Works Dept $6 million (of the $6.3 million total) is specifically budgeted for FY27 Pavement Management Program (Increase of $1 million compared to FY26) Public Works General Fund Budget is $2.5 million Public Works Streets Fund Budget is $8.3 million Meeting Packet Page 280 of 295 General Fund – Development Services Dept Meeting Packet Page 281 of 295 General Fund – Community Services Dept Meeting Packet Page 282 of 295 General Fund – Fire Department Meeting Packet Page 283 of 295 General Fund – Law Enforcement MCSO Patrol Contract – slight decrease for FY27 Meeting Packet Page 284 of 295 Other Major Funds Meeting Packet Page 285 of 295 Streets Fund The League is projecting an $80K drop in HURF and level VLT revenues for the Town $6 million for FY27 Pavement Management Program (Increase of $1 million) Meeting Packet Page 286 of 295 Capital Projects Fund $9.3 million of planned Capital Projects will be paid by the various funds (“buckets”) as noted in the pie chart – those funds have been earmarked in the budget Meeting Packet Page 287 of 295 Green Light Projects in Community Services FY27Capital Projects $ 1,000,000Fountain Park Lake Liner (Design) 600,000Sierra Madre Park (*Contingent on Council Approval of Rezone*) 300,000Fountain Park Bollard Light Replacement 300,000Desert Vista Pump House (Multi-Year – Year 2 of 2) 200,000Four Peaks Electrical Building (Multi-Year – Year 2 of 2) 200,000Fountain Park Ramadas (Multi-Year – Year 2 of 2) 75,000Fountain Park Turf Reduction, Grade and Drainage Work 75,000Golden Eagle Park – Pump House and Storage Design (Construction by FY2030) 50,000Community Center – Turf Improvement and Fitness Area (Multi-Year – Year 1 of 2) $2,800,000Total FY27 Community Services CIP FY27Alternative Funded Projects $1,400,000Skyview Park (Development Fees)(Final Construction) $1,400,000Total FY27 Community Services CIP – Alternative Funded Projects Meeting Packet Page 288 of 295 Green Light Projects in Public Works FY27Capital Projects $2,003,000Downtown Streetscapes Improvements (Multi-Year – Year 2 of 5)(Verde River Construction) 325,000 Sidewalk Infill and Design (Ongoing Program) 150,000 Pedestrian Marked Crosswalks (Ongoing Program) 500,000Town Hall Campus Buildings – Roof Rehabilitation 100,000Dam Sediment Removal and Improvements (Ongoing Program) 50,000Guardrail Replacement Town-Wide (Ongoing Program) $3,128,000Total FY27 Public Works CIP FY27Alternative Funded Projects $1,000,000Shea Blvd Widening – Palisades to FH Blvd (Carryover Budget to Complete Construction) 325,000Golden Eagle Impoundment Area Improvements – Phase II (Final Construction of Dam) 400,000Library/Museum/Community Center Air Handler Upgrades (Facilities Reserve Fund) 250,000Ashbrook Wash Slope Stabilization (Multi-Year – Year 1 of 3)(Contingent on Grant) $1,975,000Total FY27 Public Works CIP – Alternative Funded Projects Meeting Packet Page 289 of 295 Facilities Reserve Fund Reduced operating budget by $400k to account for Air Handler project earmarked to be paid for by Facilities Reserve Fund – Lake Liner Design is also earmarked to be spent from this Fund through the CIP Plan Meeting Packet Page 290 of 295 Special Revenue Fund FY2026 was $3 million higher to account for possible IDSDC Federal Grant – Reduced for FY2027 to account for possible grants Meeting Packet Page 291 of 295 Economic Development Fund(s)* *3 Funds are managed by Economic Development Division: 1. Economic Development Fund 2. Downtown Strategy Fund 3. Tourism Fund Downtown Performance Pad – Recommended Supplement Meeting Packet Page 292 of 295 All Non-Major Funds Meeting Packet Page 293 of 295 All Nonmajor Funds Brush Truck carryover budget of $390K + 3 vehicle replacement Recommended Supplements Meeting Packet Page 294 of 295 Council Direction and Feedback? Meeting Packet Page 295 of 295