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RESOLUTION NO. 2019-53
A RESOLUTION OF THE MAYOR AND COUNCIL OF THE TOWN
OF FOUNTAIN HILLS, ARIZONA, ADOPTING THE TOWN'S
LAND USE ASSUMPTIONS AND INFRASTRUCTURE
IMPROVEMENTS PLAN AND ISSUING THE TOWN'S NOTICE
OF INTENT TO ASSESS DEVELOPMENT IMPACT FEES
ACCORDING TO STATE LAW
RECITALS:
WHEREAS, Arizona's enabling legislation for development fees, ARIZ. REV. STAT. § 9-463.05
(the "Development Fee Statute") requires the Town to produce three integrated documents prior
to assessing development fees: (i) the Land Use Assumptions ("LUA"), (ii) an Infrastructure
Improvements Plan ("IIP"), and (iii) a Development Fee study based upon the LUA/IIP. The
Development Fee Statute also requires a two-phase adoption process, whereby the LUA and IIP
are reviewed, refined, and adopted before the Development Fee Study is addressed; and
WHEREAS, in accordance with the Development Fee Statute, the LUA and IIP were released to
the public, and the Town Council held a public hearing on September 17, 2019, to receive public
comment on the LUA/IIP; and
WHEREAS, the Town Council desires to: (i) conclude the first phase of the development fee
adoption process by approving the IIP and LUA, and (ii) initiate the second phase by issuing a
notice of intent to assess development fees.
ENACTMENTS:
NOW THEREFORE BE IT RESOLVED BY THE MAYOR AND TOWN COUNCIL OF
FOUNTAIN HILLS, ARIZONA, as follows:
SECTION 1. The recitals above are hereby incorporated as if fully set forth herein.
SECTION 2. The Land Use Assumptions and Infrastructure Improvements Plan are hereby
adopted in substantially the form and substance of Exhibit A, attached hereto and incorporated
herein by reference.
SECTION 3. The Town Council hereby gives notice of its intent to assess development fees and
directs the Town Manager or his authorized designee to: (i) release to the public and post on the
Town's website the adopted LUA/IIP, in substantially the form and substance attached as Exhibit
A and (ii) set a public hearing on the proposed development fees in accordance with applicable
law.
SECTION 4. The Mayor, the Town Manager, the Town Clerk and the Town Attorney are hereby
authorized and directed to take all steps necessary to carry out the purpose and intent of this
Resolution.
RESOLUTION NO. 2019-53 PAGE 2
PASSED AND ADOPTED by the Mayor and Council of the Fountain Hills, Maricopa County,
Arizona, this 5th day of November, 2019.
FOR THE TOWN OF FOUNTAIN HILLS: ATTESTED TO:
°VtAitro":1 t‘ i
Ginn,Nt Dickey, ayor a eth l .urke, Town erk
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REVIEWED BY: APPROVED AS TO FORM:
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Grady E. filler, wn Manager Aaron D. rnson, Town Afforne
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DRAFT
Land Use Assumptions,
Infrastructure Improvements Plan,
and Development Fee Report
Prepared for:
Town of ount ainHills, rizona
November 5, 2019
a r
yak
n Esc er Ise
FISCAL ECONOMIC IPLANNING
4701 Sangam Road
Suiteore S240
Bethesda,MD 20816
301.320.6900
www.TischlerBise.com
DRAFT Land Use Assumptions,IIP,and Development Fee Report
Fountain Hills,Arizona
[PAGE INTENTIONALLY LEFT BLANK]
DRAFT Land Use Assumptions,IIP,and Development Fee Report
Fountain Hills,Arizona
TABLE OF CONTENTS
EXECUTIVE SUMMARY 1
Arizona Development Fee Enabling Legislation 1
Necessary Public Services 1
Infrastructure Improvements Plan 2
Qualified Professionals 2
Conceptual Development Fee Calculation 3
Evaluation of Credits/Offsets 3
DEVELOPMENT FEE REPORT 4
Methodology 4
Service Areas 6
Current Development Fees 8
Proposed Development Fees 9
Difference between proposed and current development fees 10
PARKS AND RECREATION FACILITIES INFRASTRUCTURE IMPROVEMENTS PLAN 11
Service Area 11
Proportionate Share 12
Ratio of Service Units to Development Units 13
Analysis of Capacity, Usage, and Costs of Existing Public Services 13
Developed Park Land-Incremental Expansion 14
Park Amenities-Incremental Expansion 15
Development Fee Report-Plan-Based 17
Projected Demand for Services And Costs 17
Parks and Recreation Facilities IIP 19
Parks and Recreation Facilities Development Fees 20
Revenue Credit/Offset 20
Proposed Parks and Recreation Facilities Development Fees 20
Forecast of Parks and Recreation Facilities Development Fee Revenues 21
FIRE FACILITIES INFRASTRUCTURE IMPROVEMENTS PLAN 22
Service Area 22
Proportionate Share 23
Ratio of Service Units to development units 24
Analysis of Capacity, Usage, and Costs of Existing Public Services 24
Fire Apparatus—Incremental Expansion 25
Fire Equipment—Incremental Expansion 26
Development Fee Report—Plan-Based 27
Projected Service Units and Projected Demand for Services 27
Fire Facilities IIP 29
Fire Facilities Development Fees 30
Revenue Credit/Offset 30
Proposed Fire Facilities Development Fees 30
Forecast of Fire Facilities Development Fee Revenues 31
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STREET FACILITIES INFRASTRUCTURE IMPROVEMENTS PLAN 32
Service Area 32
Proportionate Share 32
Ratio of Service Units to Development Units 33
Service Units 33
Trip Generation Rates 33
Adjustment for Commuting Patterns 34
Adjustment for Pass-By Trips 34
Analysis of Capacity, Usage, and Costs of Existing Public Services 35
Travel Demand Model 35
Calibrated Travel Demand Model 37
Arterial Improvements-Plan-Based 38
Improved Intersections-Incremental Expansion 39
Development Fee Report-Plan-Based 40
Street Facilities Development Fees 41
Revenue Credit/Offset 41
Proposed Street Facilities Development Fees 41
Projected Street Facilities Development Fee Revenue 42
APPENDIX A:LAND USE ASSUMPTIONS 43
Executive Summary 43
Service Areas 43
Summary of Growth Indicators 46
Residential Development 47
Recent Residential Construction 47
Household Size 48
Seasonal Households 49
Population Estimates 49
Population Projections 50
Nonresidential Development 51
Employment Estimates 51
Nonresidential Square Footage Estimates 52
Employment and Nonresidential Floor Area Projections 53
Average Weekday Vehicle Trips 54
Trip Rate Adjustments 54
Commuter Trip Adjustment 54
Adjustment for Pass-By Trips 55
Estimated Residential Vehicle Trip Rates 55
Functional Population 56
Development Projections 57
APPENDIX B:LAND USE DEFINITIONS 58
Residential Development S8
Nonresidential Development 59
APPENDIX C:FORECAST OF REVENUES 60
Tischier sse
i tSCA� ,ECONOMIC PLANNING.
DRAFT Land Use Assumptions,IIP,and Development Fee Report
Fountain Hills,Arizona
EXECUTIVE SUMMARY
The Town of Fountain Hills hired TischlerBise to document land use assumptions, prepare an Infrastructure
Improvements Plan (hereinafter referred to as the "IIP"), and update development fees pursuant to
Arizona Revised Statutes ("ARS") § 9-463.05 (hereinafter referred to as the "Enabling Legislation").
Municipalities in Arizona may assess development fees to offset infrastructure costs to a municipality for
necessary public services. The development fees must be based on an Infrastructure Improvements Plan
and Land Use Assumptions.The IIPs for each type of infrastructure are located in each infrastructure type's
corresponding section, and the Land Use Assumptions can be found in Appendix A. The proposed
development fees are displayed in the Development Fee Report chapter.
Development fees are one-time payments used to construct system improvements needed to
accommodate new development. The fee represents future development's proportionate share of
infrastructure costs. Development fees may be used for infrastructure improvements or debt service for
growth related infrastructure. In contrast to general taxes, development fees may not be used for
operations, maintenance, replacement, or correcting existing deficiencies.
This update of the Town's Infrastructure Improvements Plan and associated update to its development
fees includes the following necessary public services:
• Parks and Recreation Facilities
• Fire Facilities
• Street Facilities
This plan also includes all necessary elements required to be in full compliance with Arizona Revised
Statutes ("ARS") § 9-463.05 (SB 1525). It should be noted that this Infrastructure Improvements Plan and
Development Fee study does not include storm water, drainage or flood control facilities.
ARIZONA DEVELOPMENT FEE ENABLING LEGISLATION
The Enabling Legislation governs how development fees are calculated for municipalities in Arizona.
Necessary Public Services
Under the requirements of the Enabling Legislation, development fees may only be used for construction,
acquisition or expansion of public facilities that are necessary public services. "Necessary public service"
means any of the following categories of facilities that have a life expectancy of three or more years and
that are owned and operated on behalf of the municipality: water, wastewater, storm water, drainage,
flood control, library, streets, fire and police, and neighborhood parks and recreation. Additionally, a
necessary public service includes any facility, not included in the aforementioned categories(e.g.,general
government facilities),that was financed before June 1, 2011 and that meets the following requirements:
1. Development fees were pledged to repay debt service obligations related to the construction of
the facility.
2. After August 1, 2014, any development fees collected are used solely for the payment of principal
and interest on the portion of the bonds, notes, or other debt service obligations issued before
June 1, 2011 to finance construction of the facility.
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Infrastructure Improvements Plan
Development fees must be calculated pursuant to an IIP. For each necessary public service that is the
subject of a development fee, by law,the IIP shall include the following seven elements:
• A description of the existing necessary public services in the service area and the costs to update,
improve, expand, correct or replace those necessary public services to meet existing needs and
usage and stricter safety, efficiency, environmental or regulatory standards, which shall be
prepared by qualified professionals licensed in this state, as applicable.
• An analysis of the total capacity,the level of current usage and commitments for usage of capacity
of the existing necessary public services, which shall be prepared by qualified professionals
licensed in this state, as applicable.
• A description of all or the parts of the necessary public services or facility expansions and their
costs necessitated by and attributable to development in the service area based on the approved
Land Use Assumptions, including a forecast of the costs of infrastructure, improvements, real
property, financing, engineering and architectural services, which shall be prepared by qualified
professionals licensed in this state, as applicable.
• A table establishing the specific level or quantity of use, consumption, generation or discharge of
a service unit for each category of necessary public services or facility expansions and an
equivalency or conversion table establishing the ratio of a service unit to various types of land uses,
including residential, commercial and industrial.
• The total number of projected service units necessitated by and attributable to new development
in the service area based on the approved Land Use Assumptions and calculated pursuant to
generally accepted engineering and planning criteria.
• The projected demand for necessary public services or facility expansions required by new service
units for a period not to exceed 10 years.
• A forecast of revenues generated by new service units other than development fees, which shall
include estimated state-shared revenue, highway users revenue, federal revenue, ad valorem
property taxes,construction contracting or similar excise taxes and the capital recovery portion of
utility fees attributable to development based on the approved Land Use Assumptions and a plan
to include these contributions in determining the extent of the burden imposed by the
development.
Qualified Professionals
The IIP must be developed by qualified professionals using generally accepted engineering and planning
practices. A qualified professional is defined as "a professional engineer, surveyor, financial analyst or
planner providing services within the scope of the person's license,education,or experience."TischlerBise
is a fiscal,economic,and planning consulting firm specializing in the cost of growth services and is licensed
to do business in Arizona. Our services include development fees, fiscal impact analysis, infrastructure
financing analyses, user fee/cost of service studies, capital improvement plans, and fiscal software.
TischlerBise has prepared over 900 development fee studies over the past 40 years for local governments
across the United States.
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DRAFT Land Use Assumptions,HP,and Development Fee Report
Fountain Hills,Arizona
Conceptual Development Fee Calculation
In contrast to project-level improvements, development fees fund growth-related infrastructure that will
benefit multiple development projects, or the entire service area (usually referred to as system
improvements). The first step is to determine an appropriate demand indicator for the particular type of
infrastructure.The demand indicator measures the number of service units for each unit of development.
For example, an appropriate indicator of the demand for parks is population growth and the increase in
population can be estimated from the average number of persons per housing unit.The second step in the
development fee formula is to determine infrastructure improvement units per service unit,typically called
Level of Service standards, sometimes referred to as LOS. In keeping with the park example, a common
LOS standard is improved park acres per thousand people.The third step in the development fee formula
is the cost of various infrastructure units. To complete the park example, this part of the formula would
establish a cost per acre for land acquisition and/or park improvements.
Evaluation of Credits/Offsets
Regardless of the methodology,a consideration of credits/offsets is integral to the development of a legally
defensible development fee. There are two types of credits/offsets that should be addressed in
development fee studies and ordinances. The first is a revenue credit/offset due to possible double
payment situations, which could occur when other revenues may contribute to the capital costs of
infrastructure covered by the development fee. This type of credit/offset is integrated into the fee
calculation,thus reducing the fee amount.The second is a site-specific credit or developer reimbursement
for dedication of land or construction of system improvements. This type of credit is addressed in the
administration and implementation of the development fee program. For ease of administration,
TischlerBise normally recommends developer reimbursements for system improvements.
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DRAFT Land Use Assumptions,HP,and Development Fee Report
Fountain Hills,Arizona
DEVELOPMENT FEE REPORT
METHODOLOGY
................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
Development fees for the necessary public services made necessary by new development must be based
on the same level of service provided to existing development in the service area. There are three basic
methodologies used to calculate development fees. They examine the past, present, and future status of
infrastructure.The objective of evaluating these different methodologies is to determine the best measure
of the demand created by new development for additional infrastructure capacity. Each method has
advantages and disadvantages in a particular situation and can be used simultaneously for different cost
components. Additionally, development fees for public services can also include the cost of professional
services for preparing IIP's and the related Development Fee report.
Reduced to its simplest terms, the process of calculating development fees involves two main steps: (1)
determining the cost of development-related capital improvements and(2)allocating those costs equitably
to various types of development. In practice, though, the calculation of development fees can become
quite complicated because of the many variables involved in defining the relationship between
development and the need for facilities within the designated service area. The following paragraphs
discuss basic methods for calculating development fees and how those methods can be applied.
• Cost Recovery (past improvements) -The rationale for recoupment, often called cost recovery, is
that new development is paying for its share of the useful life and remaining capacity of facilities
already built, or land already purchased,from which new growth will benefit.This methodology is
often used for utility systems that must provide adequate capacity before new development can
take place.
• Incremental Expansion (concurrent improvements) - The incremental expansion method
documents current level of service standards for each type of public facility,using both quantitative
and qualitative measures.This approach assumes there are no existing infrastructure deficiencies
or surplus capacity in infrastructure. New development is only paying its proportionate share for
growth-related infrastructure. Revenue will be used to expand or provide additional facilities, as
needed,to accommodate new development.An incremental expansion cost method is best suited
for public facilities that will be expanded in regular increments to keep pace with development.
• Plan-Based (future improvements) -The plan-based method allocates costs for a specified set of
improvements to a specified amount of development. Improvements are typically identified in a
long-range facility plan and development potential is identified by a land use plan.There are two
basic options for determining the cost per demand unit: (1)total cost of a public facility can be
divided by total demand units(average cost), or(2)the growth-share of the public facility cost
can be divided by the net increase in demand units over the planning timeframe (marginal cost).
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Fountain Hills,Arizona
A summary is provided in Figure 1 showing the methodology for each necessary public service, as well as
the service area and cost allocation method used to develop the IIP and calculate the development fees.
Due to the present uncertainty of development intensity, timeliness, and conveyance of State Land
property in the Fountain Hills service area, it is recommended that growth-related transportation impacts
be addressed through both plan-based and incremental expansion methodologies.
Figure 1: Recommended Calculation Methodologies
Necessary Service Incremental Cost Cost
Public Service Area Expansion Plan Based y
Recover Allocation
Parks and Developed Park Land, Development Fee
Townwide N/A Population,Jobs
Recreation Park Amenities Report
Fire Apparatus, Development Fee
Fire Townwide N/A Population,Jobs
Fire Equipment Report
Arterial Improvements,
Street Townwide Improved Intersections Development Fee N/A VMT
Report
Rounding
A note on rounding: Calculations throughout this report are based on an analysis conducted using Excel
software. Most results are discussed in the report using two,three, and four-digit places, which represent
rounded figures. However, the analysis itself uses figures carried to their ultimate decimal places;
therefore,the sums and products generated in the analysis may not equal the sum or product if the reader
replicates the calculation with the factors shown in the report (due to the rounding of figures shown, not
in the analysis).
Taschler ise S
itSCAI I ECONOMIC ',.ANNIN(.
DRAFT Land Use Assumptions,lIP,and Development Fee Report
Fountain Hills,Arizona
SERVICE AREAS
ARS 9-463.05 defines "service area" as follows:
Any specified area within the boundaries of a municipality in which development will be served by
necessary public services or facility expansions and within which a substantial nexus exists between
the necessary public services or facility expansions and the development being served as prescribed
in the infrastructure improvements plan.
The Town's previous Land Use Assumptions, Infrastructure Improvement Plan, and Development Fee
Report recommended one service area, shown below in Figure 2.
Figure 2: Current Development Fee Service Area
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F SCA4 1 ECONOMIC!PLANNING
DRAFT Land Use Assumptions,lip,and Development Fee Report
Fountain Hills,Arizona
Much of the land in Fountain Hills has been developed with approximately 24 percent, or 2,400, of the
9,780 developable acres remaining until the community reaches "build out," a state of maximum
development under the adopted plan. As development of the remaining available land proceeds, it is
important to identify any additional demands, and associated costs, for services that will be utilized by
future development including the provision of adequate park and recreational space, transportation
networks, fire apparatus and equipment. All of the elements incorporated into the study are intended to
serve the entire Town with a standard level of service as opposed to bounded districts or subareas. As an
example, referring to Figure 3, a new residential development in Section 2 is still likely to utilize regional
recreational amenities and transportation infrastructure located throughout Town. Furthermore, fire
demands change over time based on migration patterns of people and are not necessarily restricted to
specific geographic sub-zones. As such,TischlerBise recommends a townwide service area for all fees.
Figure 3: Proposed Development Fee Service Area
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Taschler ise
FISCAL I ECONOMIC PLANNING
DRAFT Land Use Assumptions,IIP,and Development Fee Report
Fountain Hills,Arizona
CURRENT DEVELOPMENT FEES
................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
Fountain Hills' current development fees are shown below in Figures 4 and 5. Demand for services (parks
and recreation,fire,and streets)is driven by the intensity of the use on those particular services;therefore,
fees are assessed based on development type — residential or nonresidential. Current fees are shown in
Figure 4 for residential development and in Figure 5 for nonresidential development. It is worth noting
there are currently no fees for street improvements.
Figure 4: Current Residential Development Fees
Residential Development Development Fees per Unit
Development Type Fire Parks and Street Total
Recreation
Single Family $300 $1,301 $0 $1,601
Multi-Family $300 $1,301 $0 $1,601
Figure 5: Current Nonresidential Development Fees
Nonresidential Development Development Fees per Square Foot
Development Type Fire Parks and Street Total
Recreation
Industrial $0.24 $0.00 $0.00 $0.24
Commercial $0.24 $0.00 $0.00 $0.24
Institutional $0.24 $0.00 $0.00 $0.24
Office $0.24 $0.00 $0.00 $0.24
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PROPOSED DEVELOPMENT FEES
The proposed fees are based on a policy-level concept that development fees should fund 100 percent of
growth-related infrastructure, therefore the fees shown below represent the maximum allowable fees.
Fountain Hills may adopt fees that are less than the amounts shown; however,a reduction in development
fee revenue will necessitate an increase in other revenues, a decrease in planned capital improvements,
and/or a decrease in Fountain Hills' level-of-service standards.All costs in the Development Fee Report are
in current dollars with no assumed inflation rate over time. If cost estimates change significantly over time,
development fees should be recalibrated.
Proposed development fees are shown below in Figures 6 and 7. Development fees for residential
development are assessed per dwelling unit, based on the type of unit. Nonresidential development fees
are assessed per square foot of floor area.
Figure 6: Proposed Residential Development Fees
Residential Development Development Fees per Unit
Development Type Fire Parks and Street Total
Recreation
Single Family $122 $1,916 $1,935 $3,974
Multi-Family $94 $1,479 $964 $2,537
Figure 7: Proposed Nonresidential Development Fees
Nonresidential Development Development Fees per Square Foot
Development Type Fire Parks and Street Total
Recreation
Industrial $0.10 $0.56 $0.63 $1.29
Commercial $0.14 $0.81 $2.86 $3.82
Institutional $0.06 $0.32 $2.48 $2.86
Office $0.18 $1.03 $1.24 $2.45
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rtsc Al 1 ECONOMIC PLANNING
DRAFT Land Use Assumptions,IIP,and Development Fee Report
Fountain Hills,Arizona
DIFFERENCE BETWEEN PROPOSED AND CURRENT DEVELOPMENT FEES
................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
The differences between the proposed and current development fees are displayed below in Figure 8 for
residential development and Figure 9 for nonresidential development.
Figure 8: Difference Between Proposed and Current Residential Development Fees
Residential Development Development Fees per Unit
Parks and
Development Type Fire Street Fee Change
Recreation
Single Family ($178) $615 $1,935 $2,373
Multi-Family ($206) $178 $964 $936
Figure 9: Difference Between Proposed and Current Nonresidential Development Fees
Nonresidential Development Development Fees per Square Foot
Parks and
Development Type Fire Street Fee Change
Recreation
Industrial ($0.14) $0.56 $0.63 $1.05
Commercial ($0.10) $0.81 $2.86 $3.58
Institutional ($0.19) $0.32 $2.48 $2.62
Office ($0.06) $1.03 $1.24 $2.21
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PARKS AND RECREATION FACILITIES INFRASTRUCTURE IMPROVEMENTS PLAN
ARS §9-463.05 (T)(7)(g) defines the facilities and assets that can be included in the Parks and Recreational
Facilities IIP:
"Neighborhood parks and recreational facilities on real property up to thirty acres in area, or parks
and recreational facilities larger than thirty acres if the facilities provide a direct benefit to the
development. Park and recreational facilities do not include vehicles, equipment or that portion of
any facility that is used for amusement parks,aquariums,aquatic centers, auditoriums,arenas, arts
and cultural facilities, bandstand and orchestra facilities, bathhouses, boathouses, clubhouses,
community centers greater than three thousand square feet in floor area, environmental education
centers, equestrian facilities, golf course facilities, greenhouses, lakes, museums, theme parks,
water reclamation or riparian areas, wetlands, zoo facilities or similar recreational facilities, but
may include swimming pools."
The Parks and Recreation Facilities IIP includes components for developed park land, park amenities, and
the cost of professional services for preparing the Parks and Recreation Facilities IIP and related
Development Fee Report. An incremental expansion methodology is used for developed park land, and
park amenities. A plan-based methodology is used for the Development Fee Report.
Service Area
The Town of Fountain Hills plans to provide a uniform level of service and equal access to parks and
recreational facilities within the Town limits. The parks and recreation programs are structured and
provided to make full use of Fountain Hills'total inventory of facilities.Therefore,the Parks and Recreation
Facilities IIP uses a townwide service area.
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Fountain Hills,Arizona
Proportionate Share
ARS § 9-463.05 (B)(3) states that the development fee shall not exceed a proportionate share of the cost
of necessary public services needed to accommodate new development. TischlerBise recommends peak
daytime population as a reasonable indicator of the potential demand for Parks and Recreational Facilities
from residential and nonresidential development. According to the U.S. Census Bureau web application
OnTheMap, there were 2,929 inflow commuters in 2015, which is the number of persons who work in
Fountain Hills but live outside the Town.OnTheMap is a web-based mapping and reporting application that
shows where workers are employed and where they live. It describes geographic patterns of jobs by their
employment locations and residential locations as well as the connections between the two locations.
OnTheMap was developed through a unique partnership between the U.S. Census Bureau and its Local
Employment Dynamics (LED) partner states. OnTheMap data is used, as shown in Figure PK1, to derive
functional population shares for Fountain Hills. The estimated peak population in 2015, which includes
seasonal residents, was 28,282 persons. The study uses 2015 data because this the most recent year
available for inflow/outflow data.
As shown in Figure PK1,the proportionate share is based on cumulative impact days per year with residents
potentially impacting parks and recreational facilities 365 days per year. Inflow commuters potentially
impact park and recreational facilities 250 days per year, assuming 5 workdays per week multiplied by 50
weeks per year. For parks and recreational facilities, residential development generates 93 percent of
demand and nonresidential development generates the remaining seven percent of demand.
Figure PK1: Daytime Population in 2015
Cumulative Impact Days per Year Cost Allocation for Parks
Fountain Hills Inflow
Residents Commuters Residential/ Nonresidential2 Total Residential Nonresidential
28,282 2,929 10,322,928 732,250 11,055,178 93% 7%
1.Days perYear=365 365
2.Days perYear=250(5 Days per Week x 50 Weeks per Year) 250
Source:Maricopa Association of Goverments 2015 Population Estimate;TischlerBise Peak Population Analysis;U.S.Census Bureau,
OnTheMap 6.1.1 Application,2015.
Tischler ise 12
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RATIO OF SERVICE UNITS TO DEVELOPMENT UNITS
ARS§9-463.05(E)(4) requires:
"A table establishing the specific level or quantity of use, consumption, generation or discharge of
a service unit for each category of necessary public services or facility expansions and an
equivalency or conversion table establishing the ratio of a service unit to various types of land uses,
including residential, commercial and industrial."
Figure PK2 displays the demand indicators for residential and nonresidential land uses. For residential
development, the table displays the persons per household for single-family (or single unit) and multi-
family units. For nonresidential development, the table displays the number of employees per thousand
square feet of floor area for four different types of nonresidential development.
Figure PK2: Parks and Recreational Facilities Ratio of Service Unit to Development Unit
Residential Development
Persons per
Development Type 1
Household
Single Family 2.15
Multi-Family 1.66
Nonresidential Development
Jobs per
Development Type 1
1,000 Sq. Ft
Industrial 1.63
Commercial 2.34
Institutional 0.93
Office 2.97
1.See Land Use Assumptions
ANALYSIS OF CAPACITY,USAGE,AND COSTS OF EXISTING PUBLIC SERVICES
ARS§9-463.05(E)(1) requires:
"A description of the existing necessary public services in the service area and the costs to upgrade,
update, improve, expand, correct or replace those necessary public services to meet existing needs
and usage and stricter safety, efficiency, environmental or regulatory standards, which shall be
prepared by qualified professionals licensed in this state, as applicable."
ARS§9-463.05(E)(2) requires:
"An analysis of the total capacity, the level of current usage and commitments for usage of capacity
of the existing necessary public services, which shall be prepared by qualified professionals licensed
in this state, as applicable."
Ti chler�sse 13
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Developed Park Land - Incremental Expansion
The summary of developed neighborhood and community park land in Fountain Hills is displayed in Figure
PK3. Town-owned golf courses, regional parks, retention ponds, and conservation parks were excluded
from the inventory. Fountain Hills has a total of 127 acres of developed park land.
The level of service for residential development is 0.00410 acres per resident, which is calculated by
multiplying the total number of acres(127)by the residential proportionate share(93 percent)and dividing
this total by the 2018 peak population (28,840).The nonresidential level of service is 0.00161 acres per job,
which is found by multiplying the total number of acres (127) by the nonresidential proportionate share(7
percent) and dividing this total by the number of jobs in 2018 (5,521). The analysis uses a developed cost
of$40,000 per acre—this includes infrastructure costs and excludes land acquisition costs. Multiplying the
average cost per developed acre of park land ($40,000) by the residential and nonresidential levels of
service results in a cost of$163.81 per person and$64.41 per job. Note that while the LOS standards shown
are rounded to the fifth decimal place, the analysis does not round these figures.
Figure PK3: Developed Park Land Level-of-Service Standards
Description I Developed Acres
Desert Vista Park 12.0
Fountain Park 65.0
Four Peaks Park 14.0
Golden Eagle Park 25.0
Avenue Plaza 3.0
Botanical Garden Preserve 8.0
Total 127.0
Cost Allocation Factors
Developed Cost per Acre' $40,000
Level-of-Service Standards
Existing Developed Acres 127.0
Residential
Residential Share 93%
2018 Peak Population 28,840
Developed Acres per Person 0.00410
Cost per Person I $163.81
Nonresidential
Nonresidential Share 7%
2018 Jobs 5,521
Developed Acres per Job 0.00161
Cost per Job I $64.41
1. Includes infrastructure costs but excludes acquisition costs.
Tischler ise 14
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Fountain Hills,Arizona
Park Amenities - Incremental Expansion
Fountain Hills' park amenities inventory is displayed in Figure PK4. Fountain Hills parks have 70 amenities,
which have a total replacement cost of about$22.1 million. Dividing the total replacement cost by the total
number of amenities yields an average cost per amenity of$315,757 as shown in Figure PK4.
Figure PK4: Park Amenities Inventory
Description I Units I Unit Cost 'Replacement Cost
GE-Softball Fields 3 $725,000 $2,175,000
GE-Baseball Fields 1 $625,000 $625,000
GE-Tennis Courts 4 $108,000 $432,000
GE-Basketball Courts 2 $120,000 $240,000
GE-Vollyball Courts 2 $24,000 $48,000
GE-Playgrounds(0-5 YO) 1 $125,000 $125,000
GE-Playgrounds(5-12 YO) 1 $230,000 $230,000
GE-Ramada(Saguaro) 1 $168,000 $168,000
GE-Ramada(Ocotillo) 1 $84,000 $84,000
GE-Ramada(Cottonwood) 1 $84,000 $84,000
GE-Restrooms 1 $420,000 $420,000
GE-Parking Lot 3 $525,938 $1,577,814
FP-Splash Pad 1 $480,000 $480,000
FP-Great Lawn 1 $475,000 $475,000
FP-Red Yucca Lawn 1 $475,000 $475,000
FP-Golden Barrel Lawn 1 $475,000 $475,000
FP-Disk Golf 1 $15,284 $15,284
FP-Walking Path 1 $380,284 $380,284
FP-Restrooms 1 $420,000 $420,000
FP-Playground(2-5 YO) 1 $125,000 $125,000
FP-Musical Playground 1 $230,000 $230,000
FP-Playground(5-12 YO) 1 $230,000 $230,000
FP-Ramada(Kiwanis) 1 $168,000 $168,000
FP-Ramada(Red Yucca) 1 $84,000 $84,000
FP-Ramada(Chuparosa) 1 $84,000 $84,000
FP-Ramada(Golden Barrel) 1 $84,000 $84,000
FP-Ramada(Ironwood) 1 $84,000 $84,000
FP-Parking Lot 2 $525,938 $1,051,876
4P-Multi Use Field 2 $475,000 $950,000
4P-Parking Lot 2 $525,938 $1,051,876
4P-Playground(5-12 YO) 2 $230,000 $460,000
4P-Ramada 1 $84,000 $84,000
4P-Restrooms 1 $420,000 $420,000
4P-Softball Field 2 $825,000 $1,650,000
4P-Foot Bridge 1 $750,000 $750,000
4P-Tennis Court 2 $108,000 $216,000
DV-Dog Park 1 $650,000 $650,000
ii DV-Multi Use Field 3 $475,000 $1,425,000
DV-Parking Lot 1 $525,938 $525,938
r DV-Playground(5-12 YO) 1 $230,000 $230,000
DV-Ramada 8 $84,000 $672,000
I DV-Restroom 1 $420,000 $420,000
DV-Skate Park 1 $414,000 $414,000
Adero-Restr000m 1 $420,000 $420,000
Adero-Parking Lot 1 $525,938 $525,938
Adero-Ramada 1 $168,000 $168,000
Total 70 $315,757 $22,103,010
1.Parks and Recreation Department,City of Fountain Hills.
Tiscl use 15
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Fountain Hills,Arizona
The current residential level of service is 0.00226 amenities per resident, which was calculated by
multiplying the 70 amenities by the residential proportionate share (93 percent) and dividing this amount
by the current population (28,840). Similarly, the nonresidential level of service is 0.00089 units per job
(5,521). Multiplying the average cost per amenity ($315,757) by the residential and nonresidential levels
of service results in a cost of$712.75 per person and $280.24 per job. Note that while the LOS standards
shown are rounded to the fifth decimal place, the analysis does not round these figures. Therefore, the
cost analysis calculations may not produce the same result if the reader replicates the calculations using
the factors shown (due to the rounding of figures shown, not in the analysis).
Figure PK5: Park Amenities Level-of-Service Standards
Cost Allocation Factors
Cost per Amenity $315,757
Level-of-Service Standards
Existing Amenities 70
Residential
Residential Share 93%
2018 Peak Population 28,840
Amenities per Person 0.00226
Cost per Person I $712.75
Nonresidential
Nonresidential Share 7%
2018 Jobs 5,521
Amenities per Job 0.00089
Cost per Job I $2.80.24
Taschler ise 16
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Fountain Hills,Arizona
Development Fee Report- Plan-Based
The cost to prepare the Parks and Recreation IIP and Development Fees totals$16,640. Fountain Hills plans
to update its report every five years. Based on this cost, proportionate share, and five-year projections of
new development from the Land Use Assumptions document, the cost per person is $14.63 and the cost
per job is$2.39.
Figure PK6: Development Fee Report Cost Allocation
Necessary 5-Year Cost per
Cost Proportionate Share Demand Unit
Public Service Change Demand Unit
Parks and Residential 93% Population 1,058 $14.63
$16,640
Recreation Nonresidential 7% Jobs 487 $2.39
Residential 81% Population 1,058 $12.74
Fire $16,640 - -
Nonresidential 19% Jobs 487 $6.50
Street $16,640 All Development 100% VMT 11,512 $1.45
Total $49,920
PROJECTED DEMAND FOR SERVICES AND COSTS
ARS § 9-463.05(E)(5) requires:
"The total number of projected service units necessitated by and attributable to new development
in the service area based on the approved land use assumptions and calculated pursuant to
generally accepted engineering and planning criteria."
As shown in Figure PK8,the Land Use Assumptions projects an additional 2,163 persons and 872 jobs over
the next 10 years.
ARS§ 9-463.05(E)(6) requires:
"The projected demand for necessary public services or facility expansions required by new service
units for a period not to exceed ten years."
These projected service units are multiplied by the current levels of service for the IIP components shown
in Figures PK7 and PK8. New development will demand an additional 10.3 acres of developed park land,
and 5.7 additional park amenities over the next 10 years.The park improvements and recreational facility
totals demanded by new development multiplied by the respective costs suggests the Town will need to
spend $2.19 million on new park improvements to accommodate projected demand, as shown in the
bottom of Figure PK9.
Tis hlerrCSise 17
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Fountain Hills,Arizona
Figure PK7: Projected Demand for Developed Park Land
Type of Infrastructure I Level of Service I Demand Unit I Cost per Unit
0.00410 Developed Acres per Person
Developed Park Land $40,000
0.00161 Developed Acres perJob
Need for Developed Park Land
Residential Nonresidential Total
Year Population Jobs
Acres Acres Acres
2018 28,840 5,521 118.1 8.9 127.0
2019 29,048 5,600 119.0 9.0 128.0
2020 29,258 5,789 119.8 9.3 129.1
2021 29,470 5,861 120.7 9.4 130.1
2022 29,683 5,934 121.6 9.6 131.1
2023 29,898 6,008 122.4 9.7 132.1
2024 30,115 6,083 123.3 9.8 133.1
2025 30,334 6,159 124.2 9.9 134.1
2026 30,555 6,236 125.1 10.0 135.2
2027 30,778 6,314 126.0 10.2 136.2
2028 31,003 6,393 127.0 10.3 137.3
10-Yr Increase 2,163 872 8.9 1.4 10.3
Growth-Related Expenditures I $354,274 I $56,169 I $410,443
Figure PK8: Projected Demand for Park Amenities
Type of Infrastructure I Level of Service I Demand Unit I Cost per Unit
0.00226 Units per Person
Park Amenities $315,757
0.00089 Units per Job
Need for Park Amenities
Residential Nonresidential Total
Year Population Jobs
Units Units Units
2018 28,840 5,521 65.1 4.9 70.0
2019 29,048 5,600 65.6 5.0 70.5
2020 29,258 5,789 66.0 5.1 71.2
2021 29,470 5,861 66.5 5.2 71.7
2022 29,683 5,934 67.0 5.3 72.3
2023 29,898 6,008 67.5 5.3 72.8
2024 30,115 6,083 68.0 5.4 73.4
2025 30,334 6,159 68.5 5.5 73.9
2026 30,555 6,236 69.0 5.5 74.5
2027 30,778 6,314 69.5 5.6 75.1
2028 31,003 6,393 70.0 5.7 75.7
10-Yr Increase 2,163 872 4.9 0.8 5.7
Growth-Related Expenditures I $1,541,442 I $244,390 I 1 7(' , ' =,2
Taschler ise 18
irscAE 1 ECONOMIC I PLANNING..
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PARKS AND RECREATION FACILITIES IIP
ARS§9-463.05(E)(3) requires:
"A description of all or the parts of the necessary public services or facility expansions and their
costs necessitated by and attributable to development in the service area based on the approved
land use assumptions, including a forecast of the costs of infrastructure, improvements, real
property, financing, engineering and architectural services, which shall be prepared by qualified
professionals licensed in this state, as applicable."
Potential Parks and Recreation Facilities that Fountain Hills may use development fees for in order to
accommodate new development over the next 10 years are shown in Figure PK9.
Figure PK9: Parks & Recreation Facilities Infrastructure Improvements Plan
Necessary Public Services I Timeframe ( Cost
Developed Park Land 2019-2028 $410,443
Park Amenities 2019-2028 $1,785,832
Total $2,196,275
4
4
4
Tischler use 19
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PARKS AND RECREATION FACILITIES DEVELOPMENT FEES
................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
Revenue Credit/Offset
A revenue credit/offset is not necessary for the Parks and Recreation Facilities development fees because
10-year growth costs exceed the amount of revenue that is projected to be generated by development
fees according to the Land Use Assumptions, as shown in Figure PK11.
Proposed Parks and Recreation Facilities Development Fees
Infrastructure standards and cost factors for Parks and Recreation Facilities,including developed park land,
park amenities,and the professional services cost for the IIP and Development Fee Report are summarized
at the top of Figure PK10.The cost per service unit for Parks and Recreation Facilities development fees is
$891.19 per person and $347.04 per job.
Parks and Recreation Facilities development fees for residential development are assessed according to
the number of persons per household. For example, the single-family fee of $1,916 is calculated using a
cost per service unit of $891.19 per person multiplied by a demand unit of 2.15 persons per household.
Nonresidential development fees are calculated using jobs as the service unit.The fee of$0.81 per square
foot of commercial development is derived from a cost per service unit of$347.04 per job multiplied by a
demand unit of 2.34 jobs per 1,000 square feet, divided by 1,000 square feet.
Figure PK10: Proposed Parks and Recreation Facilities Development Fees
Cost Cost
Fee Component
per Person per Job
Developed Park Land $163.81 $64.41
Park Amenities $712.75 $280.24
Development Fee Report $14.63 $2.39
Total $891.19 $347.04
Residential Development Development Fees per Unit
Persons per Proposed Current Increase/
Development Type 1
Household Fees Fees ueL
Single Family 2.15 $1,916 $1,301 $615
Multi-Family 1.66 $1,479 $1,301 $178
Nonresidential Development Development Fees per Square Foot
Jobs per Proposed Current Increase/
Development Type ��
1,000 Sq Ft Fees Fees ,_,L
Industrial 1.63 $0.56 $0.00 $0.56
Commercial 2.34 $0.81 $0.00 $0.81
Institutional 0.93 $0.32 $0.00 $0.32
Office 2.97 $1.03 $0.00 $1.03
1.See Land Use Assumptions
Ti ise 20 schler
FISCAL I ECONOMIC 1 PLANNING
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Fountain Hills,Arizona
FORECAST OF PARKS AND RECREATION FACILITIES DEVELOPMENT FEE REVENUES
................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
Appendix C contains the forecast of revenues required by Arizona's Enabling Legislation.The top of Figure
PK11 summarizes the growth-related cost of infrastructure in Fountain Hills over the next 10 years ($2.21
million). Fountain Hills should receive approximately $2.21 million in Parks and Recreation Facilities
development fee revenue over the next 10 years if actual development matches the Land Use Assumptions.
Figure PK11: Projected Parks and Recreation Facilities Development Fee Revenue
Fee Component I Growth Share I Existing Share I Total
Developed Park Land $410,443 $0 $410,443
Park Amenities $1,785,832 $0 $1,785,832
Development Fee Report $16,640 $0 $16,640
Total $2,212,915 $0 $2,212,915
Avg Residential Industrial Commercial Institutional Office
$1,827 $0.56 $0.81 $0.32 $1.03
per unit per sq.ft. per sq.ft. per sq.ft. per sq.ft.
Year Housing Units KSF KSF KSF KSF
Base 2018 13,268 280 1,212 505 593
Year 1 2019 13,369 282 1,226 514 604
Year 2 2020 13,472 284 1,255 540 636
Year 3 2021 13,575 285 1,273 551 642
Year 4 2022 13,679 286 1,291 563 647
Year 5 2023 13,784 288 1,310 575 653
Year 6 2024 13,890 289 1,330 587 659
Year 7 2025 13,997 290 1,349 599 664
Year 8 2026 14,105 291 1,369 611 670
Year 9 2027 14,213 292 1,389 624 676
Year 10 2028 14,323 293 1,409 637 682
10-Year Increase 1,055 13 197 132 89
Projected Revenue $1,911,191 $7,319 _ $159,645 $42,443 $91,512
Projected Fee Revenue $2,212,110
Total Expenditures �2;2I2 `4'
i
Tischier ise 21
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Fountain Hills,Arizona
FIRE FACILITIES INFRASTRUCTURE IMPROVEMENTS PLAN
ARS§9-463.05 (T)(7)(f) defines the facilities and assets that can be included in the Fire Facilities IIP:
"Fire and police facilities, including all appurtenances, equipment and vehicles. Fire and police
facilities do not include a facility or portion of a facility that is used to replace services that were
once provided elsewhere in the municipality, vehicles and equipment used to provide administrative
services, helicopters or airplanes or a facility that is used for training firefighters or officers from
more than one station or substation."
The Fire Facilities IIP and Development Fees includes components for fire apparatus, fire equipment, and
the cost of professional services for preparing the Fire Facilities IIP and related Development Fee Report.
An incremental expansion methodology is used for fire apparatus and fire equipment, and a plan-based
methodology is used for the Development Fee Report.
Service Area
The Town of Fountain Hills' Fire Department strives to provide a uniform response time townwide, and its
fire services operate as an integrated network. Depending on the number and type of calls, apparatus can
be dispatched townwide from any of the stations.Therefore,the Fire Facilities IIP uses a townwide service
area.
Tisdi er ise 22
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Proportionate Share
ARS § 9-463.05 (B)(3) states that the development fee shall not exceed a proportionate share of the cost
of necessary public services needed to accommodate new development. TischlerBise recommends
functional population to allocate the cost of fire facilities to residential and nonresidential development.
Functional population is similar to what the U.S. Census Bureau calls "daytime population," by accounting
for people living and working in a jurisdiction, but also considers commuting patterns and time spent at
home and at nonresidential locations. OnTheMap is a web-based mapping and reporting application that
shows where workers are employed and where they live. It describes geographic patterns of jobs by their
employment locations and residential locations as well as the connections between the two locations.
OnTheMap was developed through a unique partnership between the U.S. Census Bureau and its Local
Employment Dynamics (LED) partner states. OnTheMap data is used, as shown in Figure Fl, to derive
Functional Population shares for Fountain Hills.
Residents that do not work are assigned 20 hours per day to residential development and 4 hours per day
to nonresidential development (annualized averages). Residents that work in Fountain Hills are assigned
14 hours to residential development and 10 hours to nonresidential development. Residents that work
outside Fountain Hills are assigned 14 hours to residential development. Inflow commuters are assigned
10 hours to nonresidential development. Based on 2015 functional population data for Fountain Hills,the
cost allocation for residential development is 81 percent while nonresidential development accounts for
19 percent of the demand for municipal facilities.
Figure Fl: Fire Proportionate Share
Demand Units in 2015 Demand Person Proportionate
Hours/Day Hours Share
Residential
Peak Population 28,282
Residents Not Working 19,127 20 382,540
Employed Residents 9,155
Employed in Service Area 1,495 14 20,930
Employed outside Service Area 7,65 14 107,240
Residential Subtotal 510,710
Nonresidential
Non-working Residents 19,127 4 76,508
Jobs in Service Area 4,424 1=Z,
Residents Employed in Service Area 1,495 10 14,950
Non-Resident Workers(inflow Commuters) 2,929 10 29,290
Nonresidential Subtotal 120,748 19%
Total 631,458 100'
Source:U.S.Census Bureau,OnTheMap 6.5 Application and LEHD Origin-Destination Employment Statistics,2015.
Taschler use 23
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Fountain Hills,Arizona
Now
RATIO OF SERVICE UNITS TO DEVELOPMENT UNITS
................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
ARS §9-463.05(E)(4) requires:
"A table establishing the specific level or quantity of use, consumption, generation or discharge of
a service unit for each category of necessary public services or facility expansions and an
equivalency or conversion table establishing the ratio of a service unit to various types of land uses,
including residential, commercial/retail, industrial, and office/other services."
Figure F2 displays the ratio of service units to various types of land uses for residential and nonresidential
development. For residential development, the table displays the persons per household for single-family
(or single unit) and multi-family units. For nonresidential development, the table displays the number of
employees per thousand square feet of floor area for four different types of nonresidential development.
Figure F2: Persons Per Housing Type and Nonresidential Jobs per Demand Unit
Residential Development
Persons per
Development Type
Household'
Single Family 2.15
Multi-Family 1.66
Nonresidential Development
Jobs per
Development Type
1,000 Sq. Ft'
Industrial 1.63
Commercial 2.34
Institutional 0.93
Office 2.97
1.See Land Use Assumptions
ANALYSIS OF CAPACITY,USAGE,AND COSTS OF EXISTING PUBLIC SERVICES
ARS§9-463.05(E) (1) requires:
"A description of the existing necessary public services in the service area and the costs to upgrade,
update, improve, expand, correct or replace those necessary public services to meet existing needs
and usage and stricter safety, efficiency, environmental or regulatory standards, which shall be
prepared by qualified professionals licensed in this state, as applicable."
ARS§9-463.05(E)(2) requires:
"An analysis of the total capacity, the level of current usage and commitments for usage of capacity
of the existing necessary public services, which shall be prepared by qualified professionals licensed
in this state, as applicable."
Taschler use 24
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Fountain Hills,Arizona
Fire Apparatus - Incremental Expansion
The inventory summary of Fountain Hills's fire apparatus is displayed in Figure F3. The Fountain Hills Fire
Department owns 6 apparatus,which have a total replacement cost of$1.49 million. Dividing the total cost
by the total number of units yields an average cost per unit of$248,333.
The current residential level of service is 0.00017 apparatus per resident, which was obtained by
multiplying the 6 units by the residential proportionate share (81 percent) and dividing this amount by the
current population (28,840). Similarly, the nonresidential level of service is 0.00021 units per job.
Multiplying the average cost per unit ($248,333) by the residential and nonresidential levels of service
results in a cost per person of $41.85 and $51.28 per job. Note that while the LOS standards shown are
rounded to the fifth decimal place, the analysis does not round these figures. Therefore, the cost analysis
calculations may not produce the same result if the reader replicates the calculations using the factors
shown (due to the rounding of figures shown, not in the analysis).
Figure F3: Fire Apparatus Level-of-Service Standards
Description Units Unit Cost I Replacement Cost
Engines 2 $500,000 $1,000,000
Brush Truck 2 $200,000 $400,000
Command Vehicle 2 $45,000 $90,000
Total 6 $248,333 $1,490,000
Cost Allocation Factors
Cost per Apparatus $248,333
Level-of-Service Standards
Existing Apparatus 6
Residential
Residential Share 81%
2018 Peak Population 28,840
Apparatus per Person 0.00017
Cost per Person I $41.85
Nonresidential
Nonresidential Share 19%
2018 Jobs 5,521
• Apparatus per Job 0.00021
Cost per Job I $51.28
4
Tis hler use 25
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Fire Equipment- Incremental Expansion
The inventory summary of Fountain Hills's fire equipment including defibrillators and multi-band radios is
displayed in Figure F4. The Fountain Hills Fire Department owns 25 defibrillators, which have a total
replacement cost of $23,750 and seven multi-band radio units with a total replacement cost of$56,000.
Dividing the total cost by the total number of units yields an average cost of$2,492 per unit.
The current residential level of service is 0.0009 units per resident, which was obtained by multiplying the
32 units by the residential proportionate share (81 percent) and dividing this amount by the current
population (28,840). Similarly, the nonresidential level of service is 0.0011 units per job. Multiplying the
average cost per unit ($2,492) by the residential and nonresidential levels of service results in a cost per
person of $2.24 and $2.74 per job. Note that while the LOS standards shown are rounded to the fourth
decimal place,the analysis does not round these figures.Therefore,the cost analysis calculations may not
produce the same result if the reader replicates the calculations using the factors shown (due to the
rounding of figures shown, not in the analysis).
Figure F4: Fire Equipment Inventory and Level of Service Standards
Description Units Unit Cost I Replacement Cost
Defibrillators 25 $950 $23,750
Multi-Band Radio 7 $8,000 $56,000
Total 32 $2,492 $79,750
Cost Allocation Factors
Cost per unit $2,492
Level-of-Service Standards
Existing units 32
Residential
Residential Share 81%
2018 Peak Population 28,840
Units per Person 0.0009
Cost per Person I $2.24
Nonresidential
Nonresidential Share 19%
2018 Jobs 5,521
Units per Job 0.0011
Cost per Job I $2.74
TiscF rise 26
i/SCA{ ECONOMIC MANNING
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Fountain Hills,Arizona
Development Fee Report - Plan-Based
The cost to prepare the Fire Facilities IIP and Development Fee Report totals$16,640. Fountain Hills plans
to update its report every five years. Based on this cost, proportionate share, and five-year projections of
new residential and nonresidential development from the Land Use Assumptions document, the cost is
$12.74 per person and $6.50 per job.
Figure F5: Development Fee Report Cost Allocation
Necessary 5-Year Cost per
Cost Proportionate Share Demand Unit
Public Service Change Demand Unit
Parks and Residential 93%93% Population 1,058 $14.63
$16,640
Recreation Nonresidential 7% Jobs 487 $2.39
Residential 81% Population 1,058 $12.74
Fire $16,640 .�....—a...............�,m....LL�.............,�.. — .a,.am......,...............
Nonresidential 19% Jobs 487 $6.50
Street $16,640 All Development 100% VMT 11,512 $1.45
Total $49,920
PROJECTED SERVICE UNITS AND PROJECTED DEMAND FOR SERVICES
................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
ARS § 9-463.05(E)(5) requires:
"The total number of projected service units necessitated by and attributable to new development
in the service area based on the approved land use assumptions and calculated pursuant to
generally accepted engineering and planning criteria."
The Land Use Assumptions projects an additional 2,163 persons and 872 jobs over the next 10 years.
ARS§9-463.05(E)(6) requires:
"The projected demand for necessary public services or facility expansions required by new service
units for a period not to exceed ten years."
As shown in Figures F6 and F7, new development will demand less than one apparatus, and 2.9 units of
equipment.The 10-year total of the projected demand for fire facilities is multiplied by the cost per unit to
determine the total cost to accommodate the projected demand over the next 10 years.The cost for the
additional apparatus is $135,220, and the cost for the additional equipment is $7,237—for a total capital
cost of$142,458.
Ti chlerr sse 27
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Fountain Hills,Arizona
Figure F6: Projected Demand for Fire Apparatus
Type of Infrastructure I Level of Service I Demand Unit I Cost per Unit
0.00017 Units per Person
Fire Apparatus $248,333
0.00021 Units per Job
Need for Fire Apparatus
Peak Total
Year Jobs Residential Nonresidential
Population Units
2018 28,840 5,521 4.9 1.1 6.0
2019 29,048 5,600 4.9 1.2 6.1
2020 29,258 5,789 4.9 1.2 6.1
2021 29,470 5,861 5.0 1.2 6.2
2022 29,683 5,934 5.0 1.2 6.2
2023 29,898 6,008 5.0 1.2 6.3
2024 30,115 6,083 5.1 1.3 6.3
2025 30,334 6,159 5.1 1.3 6.4
2026 30,555 6,236 5.1 1.3 6.4
2027 30,778 6,314 5.2 1.3 6.5
2028 31,003 6,393 5.2 1.3 6.5
10-Yr Increase 2,163 872 0.4 0.2 0.5
Growth-Related Expenditures I $90,503 I $44,717 I $135,220
Figure F7: Projected Demand for Fire Equipment
Type of Infrastructure I Level of Service I Demand Unit I Cost per Unit
0.0009 Units per Person
Fire Equipment I $2,492
0.0011 Units per Job
Need for Fire Equipment
Peak Total
Year Jobs Residential Nonresidential
Population Units
2018 28,840 5,521 25.9 6.1 32.0
2019 29,048 5,600 26.1 6.2 32.3
2020 29,258 5,789 26.3 6.4 32.7
2021 29,470 5,861 26.5 6.5 32.9
2022 29,683 5,934 26.7 6.5 33.2
2023 29,898 6,008 26.9 6.6 33.5
2024 30,115 6,083 27.1 6.7 33.8
2025 30,334 6,159 27.3 6.8 34.0
2026 30,555 6,236 27.5 6.9 34.3
2027 30,778 6,314 27.7 7.0 34.6
2028 31,003 6,393 27.9 7.0 34.9
10-Yr Increase 2,163 872 1.9 1.0 2.9
Growth-Related Expenditures I $4,844 I $2,393 I $7,2 37
TischlTaise 28
FISCA,,ECONOMIC P,.ANNING
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Fountain Hills,Arizona
FIRE FACILITIES IIP
ARS § 9-463.05(E)(3) requires:
"A description of all or the parts of the necessary public services or facility expansions and their
costs necessitated by and attributable to development in the service area based on the approved
land use assumptions, including a forecast of the costs of infrastructure, improvements, real
property, financing, engineering and architectural services, which shall be prepared by qualified
professionals licensed in this state, as applicable."
Potential Fire Facilities that Fountain Hills may use development fees for in order to accommodate new
development over the next 10 years are shown in Figure F8. Additional apparatus and equipment will be
procured as necessitated by growth.
Figure F8: Necessary Fire Improvements and Expansions(10-Yr Total)
Necessary Public Services I Timeframe I Cost
Fire Apparatus&Equipment 2020-2028 $142,458
Tischler use 29
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Land Use Assumptions,IIP,and Development Fee Report
Fountain Hills,Arizona
FIRE FACILITIES DEVELOPMENT FEES
Revenue Credit/Offset
A revenue credit/offset is not necessary for the Fire Facilities development fees because 10-year growth
costs exceed the amount of revenue that is projected to be generated by development fees according to
the Land Use Assumptions, as shown in Figure F10.
Proposed Fire Facilities Development Fees
Infrastructure standards and cost factors for Fire Facilities are summarized at the top of Figure F9.The cost
per service unit for Fire Facilities development fees is $56.83 per person and $60.52 per job.
Fire Facilities development fees for residential development are assessed according to the number of
persons per household. For example,the single-family fee of$122 is calculated using a cost per service unit
of $56.83 per person multiplied by a demand unit of 2.15 persons per household. Nonresidential
development fees are calculated using jobs as the service unit. The fee of $0.14 per square foot of
commercial development is derived from a cost per service unit of$60.52 per job multiplied by a demand
unit of 2.34 jobs per 1,000 square feet, divided by 1,000 square feet.
Figure F9: Proposed Fire Facilities Development Fees
Cost Cost
Fee Component
per Person per Job
Fire Apparatus $41.85 $51.28
Fire Equipment $2.24 $2.74
Development Fee Report $12.74 $6.50
Total $56.83 $60.52
Residential Development Development Fees per Unit
Persons per Proposed Current Increase/
Development Type 1
Household Fees Fees Derrr5 p
Single Family 2.15 $122 $300 ($178)
Multi-Family 1.66 $94 $300 ($206)
Nonresidential Development Development Fees per Square Foot
Jobs per Proposed Current Increase/
Development Type 1
1,000 Sq. Ft Fees Fees
Industrial 1.63 $0.10 $0.24 ($0.14)
Commercial 2.34 $0.14 $0.24 ($0.10)
Institutional 0.93 $0.06 $0.24 ($0.19)
Office 2.97 $0.18 $0.24 ($0.06)
1.See Land Use Assumptions.
Tisc rouse 30
r,scm 1 ECONOMIC PLANNING
DRAFT Land Use Assumptions,lip,and Development Fee Report
Fountain Hills,Arizona
FORECAST OF FIRE FACILITIES DEVELOPMENT FEE REVENUES
................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
Appendix C contains the forecast of revenues required by Arizona's Enabling Legislation. Revenue
projections shown below assume implementation of the proposed Fire Facilities development fees and
that development over the next 10 years is consistent with the Land Use Assumptions. To the extent the
rate of development either accelerates or slows down, there will be a corresponding change in the
development fee revenue. As shown in Figure F10, the 10-year projected development fee revenue of
$159,012 is approximately equal to the 10-year growth cost of$159,098.
Figure F10: Projected Fire Facilities Development Fee Revenue
Fee Component I Growth Share I Existing Share I Total
Fire Apparatus $135,220 $0 $135,220
Fire Equipment $7,237 $0 $7,237
Development Fee Report $16,640 $0 $16,640
Total $159,098 $0 $159,098
Avg Residential Industrial Commercial Institutional Office
$116 $0.10 $0.14 $0.06 $0.18
per unit per sq.ft. per sq.ft. per sq.ft. per sq.ft.
Year Housing Units KSF KSF KSF KSF
Base 2018 13,268 280 1,212 505 593
Year 1 2019 13,369 282 1,226 514 604
Year 2 2020 13,472 284 1,255 540 636
Year 3 2021 13,575 285 1,273 551 642
Year 4 2022 13,679 286 1,291 563 647
Year 5 2023 13,784 288 1,310 575 653
Year 6 2024 13,890 289 1,330 587 659
Year 7 2025 13,997 290 1,349 599 664
Year 8 2026 14,105 291 1,369 611 670
Year 9 2027 14,213 292 1,389 624 676
Year 10 2028 14,323 293 1,409 637 682
10-Year Increase 1,055 13 197 132 89
Projected Revenue $108,826 $1,261 $26,429 _ $7,051 $15,446
Projected Fee Revenue $159,012
Total Expenditures S159,098
Tischler ise 31
t'[sc,„ I ECONOMIC Gt ANNING
DRAFT Land Use Assumptions,IIP,and Development Fee Report
Fountain Hills,Arizona
STREET FACILITIES INFRASTRUCTURE IMPROVEMENTS PLAN
ARS§ 9-463.05 (T)(7)(e) defines the facilities and assets that can be included in the Street Facilities IIP:
"Street facilities located in the service area, including arterial or collector streets or roads that have
been designated on an officially adopted plan of the municipality, traffic signals and rights-of-way
and improvements thereon."
The Street Facilities IIP includes components for arterial street improvements, improved intersections,and
the cost of professional services for preparing the Street Facilities IIP and related Development Fee Report.
An incremental expansion methodology is used for improved intersections,and a plan-based methodology
is used for arterial improvements and the Development Fee Report.
Service Area
Fountain Hills' arterial street network is designed to efficiently move traffic throughout the town;
therefore,the service area for the Street Facilities IIP and Development Fees is townwide.
A traffic analysis or alternative rational method may be used to identify specific off-site improvements as
well as mitigation measures for development project impacts(intersections,adjacent roadways,etc.).Such
project mitigation measures may be executed by the project, the Town of Fountain Hills, or by in-lieu
payment by the project. The means and methods of execution may be identified and provided for by
Development agreement,or conditions of approval for development plan review and permitting,or by any
other mutually acceptable instrument between the development project and Town of Fountain Hills.
Proportionate Share
ARS § 9-463.05 (B)(3) states that the development fee shall not exceed a proportionate share of the cost
of necessary public services needed to provide necessary public services to the development.Trip length,
trip generation rates, and trip adjustment factors are used to determine the proportionate impact of
residential, commercial, office, and industrial land uses on the Town's street network.
•
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RATIO OF SERVICE UNITS TO DEVELOPMENT UNITS
ARS § 9-463.05(E)(4) requires:
"A table establishing the specific level or quantity of use, consumption, generation or discharge of
a service unit for each category of necessary public services or facility expansions and an
equivalency or conversion table establishing the ratio of a service unit to various types of land uses,
including residential, commercial and industrial."
Service Units
The appropriate service unit for the Street Facilities development fees is vehicle miles of travel (VMT).VMT
creates the link between supply (roadway capacity) and demand (traffic generated by new development).
Components used to determine VMT include: trip generation rates, adjustments for commuting patterns
and pass-by trips, and trip length weighting factors.
Figure Si:Summary of Service Units
Residential Development
Avg W kdy Veh Trip Rate Trip Length Average Miles
Development Type VMT
Trip Ends' Adjustment Adjustment per Trip
Single Family 7.29 63% 121% 2.97 16.50
Multi-Family 3.63 63% 121% 2.97 8.22
Nonresidential Development
Avg Wkdy Veh Trip Rate Trip Length Average Miles
Development Type VMT
Trip Ends' Adjustment Adjustment per Trip
Industrial 4.96 50% 73% 2.97 5.38
Commercial 37.75 33% 66% 2.97 24.42
Institutional 19.52 50% 73% 2.97 21.16
Office 9.74 50% 73% 2.97 10.56
1.TischlerBise Land Use Assumptions
Trip Generation Rates
For nonresidential development,the trip generation rates are from the 10th edition of the reference book
Trip Generation published by the Institute of Transportation Engineers(2017).A vehicle trip end represents
a vehicle either entering or exiting a development (as if a traffic counter were placed across a driveway).
As an alternative to using the national average trip generation rate for residential development, the
Institute of Transportation Engineers (ITE) publishes regression curve formulas that may be used to derive
custom trip generation rates using local demographic data.This is explained in more detail in Appendix A:
Land Use Assumptions.
TISC i@�C3is@ 33
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DRAFT Land Use Assumptions,IIp,and Development Fee Report
Fountain Hills,Arizona
Adjustment for Commuting Patterns
To calculate Street Facilities Development Fees,trip generation rates require an adjustment factor to avoid
double counting each trip at both the origin and destination points. Therefore, the basic trip adjustment
factor is 50 percent. As discussed further below, the development fee methodology includes additional
adjustments to make the fees proportionate to the infrastructure demand for particular types of
development.
Residential development has a larger trip adjustment factor of 63 percent to account for commuters
leaving Fountain Hills for work. According to the 2009 National Household Travel Survey, weekday work
trips are typically 31 percent of production trips (i.e., all out-bound trips,which are 50 percent of all trips).
As shown in Figure S2, the Census Bureau's web application OnTheMap indicates that 84 percent of
resident workers traveled outside the Town for work in 2015. In combination, these factors (0.31 X 0.50 X
0.84= .13) support the additional 13 percent allocation of trips to residential development.
Figure S2: Inflow/Outflow Analysis
Trip Adjustment Factor for Commuters'
Employed Residents 9,155
Residents Working in Fountain Hills 1,495
Residents Working Outside Fountain Hills(Commuters) 7,660
Percent Commuting out of Fountain Hills 84%
Additional Production Trips2 13%
Residential Trip Adjustment Factor 63%
1.U.S.Census Bureau,OnTheMap Application(version 6.5)and LEND Origin-Destination
Employment Statistics,2015.
2.According to the National Household Travel Survey(2009)*,published in December 2011(see
Table 30),home-based work trips are typically 30.99 percent of"production"trips,in other words,
out-bound trips (which are 50 percent of all trip ends).Also,LED OnTheMap data from 2015
indicate that 84 percent of Fountain Hills'workers travel outside the town for work.In combination,
these factors(0.3099 x 0.50 x 0.84=0.12964686)account for 13 percent of additional production
trips.The total adjustment factor for residential includes attraction trips(50 percent of trip ends)
plus the journey-to-work commuting adjustment(13 percent of production trips)for a total of 63
percent.
*http://nhts.ornl.gov/publications.shtml;Summary of Travel Trends-Table"Daily Travel Statistics by
Weekday vs.Weekend"
Adjustment for Pass-By Trips
For commercial development, the trip adjustment factor is less than 50 percent because retail
development and some services attract vehicles as they pass by on arterial and collector roads. For
example,when someone stops at a convenience store on the way home from work,the convenience store
is not the primary destination. For the average shopping center,the ITE data indicates that 34 percent of
the vehicles that enter are passing by on their way to some other primary destination. The remaining 66
percent of attraction trips have the commercial site as their primary destination. Because attraction trips
are half of all trips,the trip adjustment factor is 66 percent multiplied by 50 percent, or approximately 33
percent of the trips.These factors are shown to derive inbound vehicle trips for each type of nonresidential
land use and are detailed in Figure S3.
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ANALYSIS OF CAPACITY,USAGE,AND COSTS OF EXISTING PUBLIC SERVICES
ARS 5 9-463.05(E)(1) requires:
"A description of the existing necessary public services in the service area and the costs to upgrade,
update, improve, expand, correct or replace those necessary public services to meet existing needs
and usage and stricter safety, efficiency, environmental or regulatory standards, which shall be
prepared by qualified professionals licensed in this state, as applicable."
Travel Demand Model
The travel demand model inputs are used to derive level of service in Vehicle Miles of Travel and future
demand for lane miles,improved intersections.A Vehicle Mile of Travel (VMT) is a measurement unit equal
to one vehicle traveling one mile. In the aggregate, VMT is the product of vehicle trips multiplied by the
average trip length. Based on estimates shown in Figure S3, existing infrastructure standards in Fountain
Hills, using the average trip length of 8.97 miles, are 1.02 lane miles of arterials per 10,000 VMT(70 arterial
lane miles/(685,788 VMT/ 10,000)).
As shown on the lower right side of Figure S3, future development generates an additional 68,981 VMT
over the next 10 years. To maintain the existing infrastructure standards, Fountain Hills needs 7.0
additional lane miles of arterials, 1.3 additional improved intersections to accommodate projected
development over the next 10 years.
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Figure S3: Projected Travel Demand
Development ITE Weekday Dev Trip Trip Length
Type Code VTE Unit Adj Wt Factor
Single Family 210 7.29 HU 63% 121%
Multi-Family 220 3.63 HU 63% 121%
Industrial 110 4.96 KSF 50% 73%
Commercial 820 37.75 KSF 33% 66%
Institutional 730 19.52 KSF 50% 73%
Office 710 9.74 KSF 50% 73%
Avg Trip Length(miles) 8.97
Vehicle Capacity Per Lane 9,800
Base I 1 I 2 I 3 I 4 I 5 I 10 10-Year
2018 2019 2020 2021 2022 2023 2028 Increase
Single Family Units 8,445 8,509 8,574 8,640 8,706 8,773 9,115 670
ate,▪ Multi-Family Units 4,823 4,860 4,897 4,935 4,973 5,011 5,208 385
Q. Industrial KSF 280 282 284 285 286 288 293 13
✓ Commercial KSF 1,212 1,226 1,255 1,273 1,291 1,310 1,409 197
>
o Institutional KSF 505 514 540 551 563 575 637 132
Office KSF 593 604 636 642 647 653 682 89
Single Family Trips 38,785 39,081 39,380 39,681 39,985 40,291 41,864 3,078
to
Multi-Family Trips 11,030 11,114 11,200 11,286 11,373 11,460 11,910 880
v Residential Trips 49,815 50,196 50,580 50,967 51,357 51,751 53,773 3,958
Tj
Industrial Trips 694 699 704 707 709 714 727 33
a)
> Commercial Trips 15,098 15,273 15,634 15,858 16,083 16,319 17,553 2,454
a
▪ Institutional Trips 4,929 5,017 5,270 5,378 5,495 5,612 6,217 1,288
-. Office Trips 2,888 2,941 3,097 3,127 3,151 3,180 3,321 434
to
> Nonresidential Trips 23,608 23,930 24,706 25,069 25,438 25,826 27,818 4,209
Total Vehicle Trips 73,423 74,126 75,286 76,036 76,795 77,577 81,591 8,167
I- Vehicle Miles of Travel 685,788 691,918 700,938 707,379 713,889 720,557 754,769 68,981
2
> Annual Increase 6,130 9,020 6,441 6,510 6,668 6,978
Arterial Lane Miles 70.0 70.6 71.5 72.2 72.8 73.5 77.0 7.0
-0
o Annual Increase 0.6 0.9 0.7 0.6 0.7 0.7 0.7
oImproved Intersections 13.0 13.1 13.3 13.4 13.5 13.7 14.3 1.3
Annual Increase 0.1 0.2 0.1 0.1 0.2 0.1 0.1
Taschler ise 36
itSCAI 1 ECONOMIC PLANNING
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Calibrated Travel Demand Model
Fountain Hills plans to construct 2.3 lane miles of arterials over the next 10 years to serve future
development. Since Fountain Hills plans to build fewer than 7.0 lane miles, as shown in Figure S3, the
average trip length of 8.97 miles is adjusted until the 10-year demand for arterials equals 2.3 lane miles-
resulting in an average trip length of 2.97 miles on the planned arterial improvements.The 10-year increase
in VMT on the planned arterial improvements equals 22,840 VMT.
Figure S4: Revised Travel Demand
Development ITE Weekday 1 Dev Trip Trip Length
Type Code VTE Unit Adj Wt Factor
Single Family 210 7.29 HU 63% 121%
Multi-Family 220 3.63 HU 63% 121%
Industrial 150 4.96 KSF 50% 73%
Commercial 820 37.75 KSF 33% 66%
Institutional 730 19.52 KSF 50% 73%
Office 620 9.74 KSF 50% 73%
Assisted Living(per bed) 254 2.60 Bed 50% 73%
Hotel(per room) 310 8.36 Room 50% 73%
Avg Trip Length(miles) 2.970
Vehicle Capacity Per Lane 9,800
Base I 1 I 2 I 3 I 4 I 5 I 10 10-Year
2018 2019 2020 2021 2022 2023 2028 Increase
Single Family Units 8,445 8,509 8,574 8,640 8,706 8,773 9,115 670
a Multi-Family Units 4,823 4,860 4,897 4,935 4,973 5,011 5,208 385
Industrial KSF 280 282 284 285 286 288 293 13
v Commercial KSF 1,212 1,226 1,255 1,273 1,291 1,310 1,409 197
v
o Institutional KSF 505 514 540 551 563 575 637 132
Office KSF 593 604 636 642 647 653 682 89
Single Family Trips 38,785 39,081 39,380 39,681 39,985 40,291 41,864 3,078
yi
fa
Multi-Family Trips 11,030 11,114 11,200 11,286 11,373 11,460 11,910 880
~a Residential Trips 49,815 50,196 50,580 50,967 51,357 51,751 53,773 3,958
73
Industrial Trips 694 699 704 707 709 714 727 33
> Commercial Trips 15,098 15,273 15,634 15,858 16,083 16,319 17,553 2,454
-61), Institutional Trips 4,929 5,017 5,270 5,378 5,495 5,612 6,217 1,288
Office Trips 2,888 2,941 3,097 3,127 3,151 3,180 3,321 434
Q Nonresidential Trips 23,608 23,930 24,706 25,069 25,438 25,826 27,818 4,209
Total VehicleTrips 73,423 74,126 75,286 76,036 76,795 77,577 81,591 8,167
I- Vehicle Miles of Travel 227,067 229,097 232,083 234,216 236,371 238,579 249,907 22,840
2
> Annual Increase 2,030 2,987 2,133 2,155 2,208 2,310
Arterial Lane Miles 23.2 23.4 23.7 23.9 24.1 24.3 25.5 2.3
o Annual Increase 0.2 0.3 0.2 0.2 0.2 0.2 0.2
oImproved Intersections 13.0 13.1 13.3 13.4 13.5 13.7 14.3 1.3
Annual Increase 0.1 0.2 0.1 0.1 0.2 0.1 0.1
Tlschler Ise 37
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Fountain Hills,Arizona
ARS §9-463.05(E)(3) requires:
"A description of all or the parts of the necessary public services or facility expansions and their
costs necessitated by and attributable to development in the service area based on the approved
land use assumptions, including a forecast of the costs of infrastructure, improvements, real
property, financing, engineering and architectural services, which shall be prepared by qualified
professionals licensed in this state, as applicable."
Arterial Improvements - Plan-Based
Fountain Hills plans to construct 2.3 lane miles of arterials over the next 10 years. Shown below in Figure
S5, Fountain Hills staff identified the total cost and any other funding for the project - this results in
$1,828,000 in eligible costs. Based on the eligible cost of arterial improvements and the 10-year VMT
increase,the cost for arterial improvements is$80.04 per VMT($1,828,000/22,840 additional VMT).
Figure S5: Planned Arterial Improvements
Arterial Street Improvements New Lane Total Other DIF Eligible Cost
Miles Cost Funding
1W Shea Blvd Widening 2.30 $4,000,000 $2,172,000 $1,828,000
DIF Eligible Cost $1,828,000
10-Year VMT Increase 22,840
Cost per VMT $80.04
Tis hler�ise 38
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Fountain Hills,Arizona
Improved Intersections-Incremental Expansion
Fountain Hills' current level of service for improved intersections is 0.57252 improved intersections per
10,000 VMT(13 intersections/ (227,067 VMT/ 10,000)), and Fountain Hills plans to maintain this level of
service over the next 10 years. As shown in Figure S4, Fountain Hills needs to construct 1.3 additional
improved intersections to maintain this standard over the next 10 years ((22,840 additional VMT/10,000)
X 0.57252 improved intersections per 10,000 VMT). Based on recent improved intersection project costs,
Fountain Hills staff estimates future improved intersections will have an average cost of $625,000 per
intersection. Fountain Hills may use development fees to fund any growth-related improved intersection
within the service area. The cost for improved intersections is $35.78 per VMT ($625,000 per improved
intersection X 0.57252 improved intersections per 10,000 VMT).
Figure S6: Existing Improved Intersection Level-of-Service and Cost Factors
Cost Allocation Factors
Cost per Improved Intersection' $625,000
Level-of-Service Standards
Existing Improved Intersections 13.0
2018 VMT 227,067
Improved Int per 10,000 VMT 0.57252
Cost per VMT I $35.78
1.Town of Fountain Hills,Arizona
Tis i raise 39
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Fountain Hills,Arizona
Development Fee Report- Plan-Based
The cost to prepare the Street Facilities IIP and Development Fee Report totals $16,640. Fountain Hills
plans to update its report every five years. Based on this cost, proportionate share, and five-year
projections of new residential and nonresidential development from the Land Use Assumptions document,
the cost is $1.45 per VMT.
Figure S7: Development Fee Report Cost Allocation
Necessary 5-Year Cost per
Cost Proportionate Share Demand Unit
Public Service Change Demand Unit
Parks and Residential 93% Population 1,058 $14.63
$16,640 ........n....,..... ....................... ......... :.,..._._
Recreation Nonresidential 7% Jobs 487 $2.39
Residential 81% "Population 1,058 $12.74
Fire $16,640 ..o.,..,...........................-.. ----------- ......
Nonresidential 19% Jobs 487 $6.50
Street $16,640 All Development 100% VMT 11,512 $1.45
Total $49,920
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Fountain Hills,Arizona
STREET FACILITIES DEVELOPMENT FEES
Revenue Credit/Offset
A revenue credit/offset is not necessary for the Street Facilities development fees because 10-year growth
costs do not substantially exceed the amount of revenue that is projected to be generated by development
fees according to the Land Use Assumptions, as shown in Figure S10.
Proposed Street Facilities Development Fees
Infrastructure standards and cost factors for Street Facilities are summarized at the top of Figure S8. The
cost per service unit for Street development fees is$117.26 per VMT.
Street Facilities development fees for residential development are assessed according to VMT generated
per unit. For example, the single-family fee of$1,935 is calculated using a cost per service unit of$117.26
per VMT multiplied by 2.97 miles per trip, multiplied by 7.29 average weekday vehicle trip ends, multiplied
by 63 percent trip rate adjustment, multiplied by 121 percent trip length adjustment. Nonresidential
development fees are calculated using VMT generated per square foot.The fee of$2.86 per square foot of
commercial development is calculated using a cost per service unit of$117.26 per VMT multiplied by 2.97
miles per trip, multiplied by 37.75 average weekday vehicle trip ends, multiplied by 33 percent trip rate
adjustment, multiplied by 66 percent trip length adjustment, divided by 1,000 square feet.
Figure S8: Proposed Street Facilities Development Fees
Cost
Fee Component
per VMT
Arteria I Improvements $80.04
Improved Intersections $35.78
Development Fee Report $1.45
Total $117.26
Average Miles per Trip 2.970
Residential Development Development Fees per Unit
Avg Wkdy Veh Trip Rate Trip Length Proposed Current Increase/
Development Type
Trip Ends' Adjustment Adjustment Fees Fees
Single Family 7.29 63% 121% $1,935 $0 $1,935
Multi-Family 3.63 63% 121% $964 $0 $964
Nonresidential Development Development Fees per Square Foot
Avg Wkdy Veh Trip Rate Trip Length Proposed Current Increase/
Development Type 1
Trip Ends Adjustment Adjustment Fees Fees c.
Industrial 4.96 50% 73% $0.63 $0.00 $0.63
Commercial 37.75 33% 66% $2.86 $0.00 $2.86
Institutional 19.52 50% 73% $2.48 $0.00 $2.48
Office 9.74 50% 73% $1.24 $0.00 $1.24
1.TischlerBise Land Use Assumptions
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PROJECTED STREET FACILITIES DEVELOPMENT FEE REVENUE
Projected fee revenue shown in Figure S9 is based on the development projections in the Land Use
Assumptions (see Appendix C) and the updated Street Facilities development fees (see Figure S8).
Expenditures on arterial improvements are derived from the anticipated need for approximately 2.3 new
lane miles over the next 10 years (see Figure S4) at a cost of$1,828,000 (see Figure S5). Expenditures on
improved intersections are derived from the anticipated need for approximately 1.3 new improved
intersections over the next 10 years at a cost of $812,500. Anticipated development fee revenue is
approximately$2.6 million over the next 10 years,while expenditures are estimated at approximately$2.6
million.
Figure S9: Projected Street Facilities Development Fee Revenue
Fee Component I Growth Share I Existing Share I Total
Arterial Improvements $1,828,000 $0 $1,828,000
Improved Intersections $812,500 $0 $812,500
Development Fee Report $16,640 $0 $16,640
Total $2,657,140 $0 $2,657,140
Single Family Multi-Family Industrial Commercial Institutional Office
$1,935 $964 $0.63 $2.86 $2.48 $1.24
per unit per unit per SF per SF per SF per SF
Year Housing Units Housing Units KSF KSF KSF KSF
Base 2018 8,445 4,823 280 1,212 505 593
Year 1 2019 8,509 4,860 282 1,226 514 604
Year 2 2020 8,574 4,897 284 1,255 540 636
Year 3 2021 8,640 4,935 285 1,273 551 642
Year 4 2022 8,706 4,973 286 1,291 563 647
Year 5 2023 8,773 5,011 288 1,310 575 653
Year 6 2024 8,840 5,050 289 1,330 587 659
Year 7 2025 8,908 5,089 290 1,349 599 664
Year 8 2026 8,977 5,128 291 1,369 611 670
Year 9 2027 9,046 5,168 292 1,389 624 676
Year 10 2028 9,115 5,208 293 1,409 637 682
10-Year Increase 670 385 13 197 132 89
Projected Revenue $1,289,018 $368,429 $8,379 $560,609 $325,643 $109,830
Projected Fee Revenue 1 $2,661,909
Total Expenditures $2,657,140
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Fountain Hills,Arizona
APPENDIX A: LAND USE ASSUMPTIONS
EXECUTIVE SUMMARY
................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
For municipalities in Arizona,the state enabling legislation requires supporting documentation on land use
assumptions, a plan for infrastructure improvements, and development fee calculations. This document
contains the land use assumptions for the Town of Fountain Hills 2018 development fee update.
Development fees must be updated every five years, making short-range projections the critical time
frame. The Infrastructure Improvements Plan (IIP) is limited to 10 years for non-utility fees, thus a very
long-range "build-out" analysis may not be used to derive development fees.
Arizona Revised Statuses (ARS) § 9-463.05 (T)(6) requires the preparation of a Land Use Assumptions
document which shows:
"Projections of change in land uses, densities, intensities and population for a specified service area
over a period of at least 10 years and pursuant to the General Plan of the municipality."
TischlerBise prepared current demographic estimates and future development projections for both
residential and nonresidential development that will be used in the Infrastructure Improvement Plan (IIP)
and calculation of the development fees. Demographic data for FY 17-18 (beginning July 1, 2017) are used
in calculating levels-of-service provided to existing development in the Town of Fountain Hills. Although
long-range projections are necessary for planning infrastructure systems, a shorter time frame of five to
10 years is critical for the impact fees analysis. TischlerBise used compound growth rates to produce
conservative projections that increase over time.
Arizona's Development Fee Act requires fees to be updated at least every five years and limits the IIP to a
maximum of 10 years for non-utility fees.Therefore,the use of a very long-range "build-out"analysis is no
longer acceptable for deriving development fees in Arizona municipalities.
SERVICE AREAS
ARS§9-463.05 defines "service area" as follows:
"Any specified area within the boundaries of a municipality in which development will be served by
necessary public services or facility expansions and within which a substantial nexus exists between
the necessary public services or facility expansions and the development being served as prescribed
in the infrastructure improvements plan."
The Town's previous Land Use Assumptions, Infrastructure Improvement Plan and Development Study
recommended three services areas, shown below in Figure Al.
I
Tischi Is@ 43
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DRAFT Land Use Assumptions,IIP,and Development HillsFee,ArizonaReport
Figure Al: Current Development Fee Service Areas
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Tischler sse 44
i/5CA1 ,ECONOMIC PLANNING
DRAFT Land Use Assumptions,lip,and Development Fee Report
Fountain Hills,Arizona
Figure A2: Proposed Development Fee Service Areas
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Tisci rise 45
«SCa,, I ECONOM,C P.,ANNINC
DRAFT Land Use Assumptions,lip,and Development Fee Report
Fountain Hills,Arizona
Arizona Revised Statutes (ARS) 9-463.05(T)(7) requires the preparation of a Land Use Assumptions
document, which shows:
"projections of changes in land uses, densities, intensities and population for a specified service
area over a period of at least ten years and pursuant to the General Plan of the municipality."
The Town of Fountain Hills, Arizona retained TischlerBise to analyze the impacts of development on its
capital facilities and to calculate development impact fees based on that analysis. TischlerBise prepared
current demographic estimates and future development projections for both residential and
nonresidential development that will be used in the Infrastructure Improvements Plan (IIP)and calculation
of the development fees. Current demographic data estimates for 2018 are used in calculating levels of
service (LOS) provided to existing development in the Town of Fountain Hills. Although long-range
projections are necessary for planning infrastructure systems, a shorter time frame of five to ten years is
critical for the development fee analysis. Arizona's Development Fee Act requires fees to be updated at
least every five years and limits the IIP to a maximum of ten years.Therefore,the use of a very long-range
"build-out" analysis is no longer acceptable for deriving development fees in Arizona municipalities.
SUMMARY OF GROWTH INDICATORS
................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
Key land use assumptions for the Town of Fountain Hills development fee study are population, housing
units, and employment projections. Based on information provided by staff, including the 2017 Town of
Fountain Hills Land Use Analysis & Statistical Report, TischlerBise uses the Maricopa Association of
Governments 2020-2030 growth rate of 0.87 percent, which is then converted to annual housing unit
increases by using a persons per household factor of 2.05, as shown in Figure A2. For nonresidential
development,the base year employment estimate is calculated from ESRI Business Analyst and uses MAG
2015-2030 estimated growth rates for each industry sector applied to the base year employment to project
future employment.The employment estimate is converted into floor area based on average square feet
per job multipliers. Four nonresidential development prototypes are discussed further below (see Figure
A5 and related text). The projections contained in this document provide the foundation for the
development impact fee study. These metrics are the service units and demand indicators used in the
development impact fee study.
Development projections and growth rates are summarized in Figure All. These projections will be used
to estimate development fee revenue and to indicate the anticipated need for growth-related
infrastructure. However, development fee methodologies are designed to reduce sensitivity to
development projections in the determination of the proportionate-share fee amounts. If actual
development is slower than projected, fee revenue will decline, but so will the need for growth-related
infrastructure. In contrast, if development is faster than anticipated, Fountain Hills will receive an increase
in fee revenue, but will also need to accelerate infrastructure improvements to keep pace with the actual
rate of development. During the next 10 years, development projections indicate an average increase of
105 housing units per year,and an average increase of approximately 43,000 square feet of nonresidential
floor area per year.
Taschler Ise 46
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RESIDENTIAL DEVELOPMENT
................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
Current estimates and future projections of residential development are detailed in this section including
population and housing units by type.
Recent Residential Construction
Development fees require an analysis of current levels of service. For residential development, current
levels of service are determined using estimates of population and housing units. Shown below, Figure Al
indicates the estimated number of housing units added by decade according to data obtained from the
U.S. Census Bureau. Fountain Hills experienced strong growth in the 1990s and 2000s. From 2000 to 2010,
Fountain Hills' housing inventory increased by an average of 267 units per year.
Figure Al: Housing Units by Decade
Census 2010 Population 22,489
Census 2010 Housing Units 13,167
Fountain Hills added an
average of 267 housing units
Census 2000 Housing Units 10,491 per year from 2000 to 2010.
New Housing Units 2000 to 2010 2,676
Housing Units Added by Decade in
Fountain Hills
6,000
5,000 -
4,000
3,000
2,000
1,000
0
Before 1970 1970s 1980s 1990s 2000s
Source:U.S.Census Bureau,Census 2010 Summary File 1, Census 2000 Summary File 1,
2013-2017 5-Year American Community Survey(for1990s and earlier, adjusted to yield
total units in 2000).
Taschler use 47
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Household Size
According to the U.S. Census Bureau, a household is a housing unit occupied by year-round residents.
Development fees often use per capita standards and persons per housing unit (PPHU) or persons per
household (PPH) to derive proportionate share fee amounts. When PPHU is used in the fee calculations,
infrastructure standards are derived using year-round population.When PPH is used in the fee calculations,
the development fee methodology assumes a higher percentage of housing units will be occupied, thus
requiring seasonal or peak population to be used when deriving infrastructure standards.To recognize the
impacts of seasonal population, Fountain Hills should impose development fees for residential
development according to the number of persons per household.This methodology assumes some portion
of the housing stock will be vacant during the course of a year. According to the U.S. Census Bureau
American Community Survey, Fountain Hills' vacancy rate was twenty-one percent in 2017.
Persons per household (PPH) calculations require data on population and the types of units by structure.
The 2010 census did not obtain detailed information using a "long-form" questionnaire. Instead, the U.S.
Census Bureau switched to a continuous monthly mailing of surveys, known as the American Community
Survey(ACS),which has limitations due to sample-size constraints. For example, data on detached housing
units are now combined with attached single units (commonly known as townhouses). For development
fees in Fountain Hills, detached stick-built units and attached units (commonly known as townhouses,
which share a common sidewall, but are constructed on an individual parcel of land) are included in the
"Single-Family Unit" category. The second residential category includes duplexes and all other structures
with two or more units on an individual parcel of land. This category is referred to as "Multi-Family Unit."
(Note: housing unit estimates from ACS will not equal decennial census counts of units. These data are
used only to derive the custom PPHU factors for each type of unit).
Figure A2 below shows the 2013-2017 5-year ACS estimates for Fountain Hills.Single-family units averaged
2.15 persons per household (20,097 persons / 9,339 households) and multi-family units averaged 1.66
persons per household (3,881 persons/2,338 households). In 2017, Fountain Hills' housing stock averaged
2.05 persons per household with a townwide vacancy rate of 21 percent.
Figure A2: Persons per Housing Unit
Persons per Housing Persons per Housing Vacancy
Units in Structure Persons Households
Household Units Housing Unit Mix Rate
Single-Family Unit' 20,097 9,339 2.15 11,381 1.77 77.3% 18%
Multi-Family Unit2 3,881 2,338 1.66 3,334 1.16 22.7% 30%
Total 23,978 11,677 2.05 14,715 1.63 21%
Source:TischlerBise analysis and calculation based on U.S.Census Bureau,2013-2017 American Community Survey,5-Year Estimates.
1.Includes detached,attached(townhouse),and manufactured units.
2.Includes duplexes,structures with two or more units,and all other units.
•
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Seasonal Households
To account for seasonal residents,the analysis includes vacant households used for seasonal, recreational,
or occasional use. According to 2017 ACS estimates shown in Figure A3, seasonal units account for 2,343
of Fountain Hills' 3,038 vacant units. With all seasonal units occupied, Fountain Hills' peak vacancy rate is
4.72 percent (14,020 peak households / 14,715 housing units). Applying Fountain Hills' occupancy factor
of 2.05 persons per household to seasonal households provides a seasonal population estimate of 4,811
persons. Fountain Hills' peak population estimate for 2017 is 28,789 (23,978 population in households +
4,811 seasonal population).
Figure A3:Seasonal Households
POPULATION
Year-Round Population 23,978
Housing Units 14,715
Vacant Housing Units 3,038
Vacancy Rate 20.65%
Households 11,677
Seasonal Households 2,343
Peak Households 14,020
Persons per Household 2.05
Population in Households 23,978
Seasonal Population 4,811
Peak Population in 2017 28,789
Source:U.S.Census Bureau,2013-2017 American Community Survey 5-Year Estimates.
Population Estimates
To accurately determine current and future population in Fountain Hills,TischlerBise compared population
estimates and growth rates from American Community Survey data,Arizona Department of Administration
(ADOA), the Fountain Hills 2017 Land Use Analysis Report, and Maricopa Association of Governments
(MAG). In 2016 MAG released population projections for jurisdictions through 2050, along with annual
updates of housing unit and population estimates. TischlerBise uses MAG's 2016 Socioeconomic
Projections in conjunction with Fountain Hills staff-provided building permit data to derive the base year
estimates of population and housing units.The 2017 Fountain Hills Land Use Analysis and Statistical Report
details housing by unit count and type current through December 31, 2017 allowing the study to establish
2018 as the base year for related projections. Further analysis of the past 20 years of building permit data
shows that Fountain Hills has averaged 125 single family and 76 multi-family units per year over this time
period, however growth has slowed substantially since 2010, in part due to a broader national economic
condition. The resulting impact on growth in Fountain Hills has reduced average unit construction to 52
single family and 16 multi-family units per year between 2015 and 2018.
Tlschler is. 49
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Population Projections
Based on recent building permit trends and review of the 2017 Fountain Hills Land Use Analysis and
Statistical Report, TischlerBise projects an average annual increase of 106 housing units (67 single-family
and 39 multi-family units) between 2018 and 2028. TischlerBise projects housing growth beyond 2018
using MAG's 2020-2030 population compound average annual growth rate of 0.87 percent and the 2017
ACS occupancy rate of 2.05 persons per household. Future households are distributed by type based on
the existing housing mix detailed in the 2017 Fountain Hill's Land Use Analysis and Statistical Report, 64
percent single family units and 36 percent multi-family units.The assumption on future housing mix is held
constant over the 10-year forecast period,therefore, between 2018 and 2028,64 percent of projected new
units are single-family and 36 percent are multi-family.
For this study, it is assumed that the household size and seasonal population will remain constant.
TischlerBise projects a 10-year increase of 2,163 persons, or an average of 216 persons annually, and a
corresponding 10-year increase of 1,055 housing units, or an average of 106 units annually. The study
assumes the total seasonal population of 4,811 will remain constant throughout the 10-year period.
Population and housing unit projections are used to illustrate the possible future pace of service demands,
revenues, and expenditures.To the extent these factors change,the projected need for infrastructure will
also change. If development occurs at a more rapid rate than projected,the demand for infrastructure will
increase at a corresponding rate. If development occurs at a slower rate than is projected,the demand for
infrastructure will also decrease.
Figure A4: Residential Development Projections
2018 I 2019 I 2020 I 2021 I 2022 I 2023 I 2028 10-Year
Base 1 2 3 4 5 10 Increase
Population
Household 24,029 24,237 24,447 24,658 24,872 25,087 26,192 2,163
Peak 28,840 29,048 29,258 29,470 29,683 29,898 31,003 2,163
Housing Units
Single Family 8,445 8,509 8,574 8,640 8,706 8,773 9,115 670
Multi-Family 4,823 4,860 4,897 4,935 4,973 5,011 5,208 385
Total Housing Units 13,268 13,369 13,472 13,575 13,679 13,784 14,323 1,055
Tischlerl use 50
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NONRESIDENTIAL DEVELOPMENT
Current estimates and future projections of nonresidential development are detailed in this section
including jobs and nonresidential floor area.
Employment Estimates
In addition to data on residential development, the calculation of development impact fees requires data
on employment(number of jobs)and nonresidential square footage in Fountain Hills.TischlerBise uses the
term "jobs" to refer to employment by place of work. TischlerBise analyzed recent employment trends,
reviewed data published by MAG,the U.S. Census Bureau, and ESRI Business Analyst',and had discussions
with Town staff.
TischlerBise estimates 2018 employment using 2015 MAG employment data and then applying MAG
industry specific growth rates to subsequent years.Shown below in Figure A5,base year employment totals
5,521 jobs. Employment estimates are grouped into four categories: Industrial, Commercial / Retail,
Institutional, and Office and Other Services. For the 2018 base year, employment estimates include 455
industrial jobs, 2,838 commercial / retail jobs, 469 institutional jobs, and 1,759 office and other services
jobs. Estimated floor area uses square feet multipliers published by the Institute of Transportation
Engineers.The conversion from employment to nonresidential floor area is discussed below.
Figure A5: Estimated Employment and Distribution by Industry Type
Nonresidential 2018 Percent of Sq.Ft. 2018 Estimated Jobs per
Category Jobs' Total Jobs per Job Floor Areal 1,000 Sq.Ft.2
Industrial3 455 8.2% 615 279,649 1.63
Commercial/Retail4 2,838 51.4% 427 1,211,769 2.34
Institutional5 469 8.5% 1,076 504,700 0.93
Office and Other Services6 1,759 31.9% 337 592,937 2.97
Total 5,521 100.0% 2,589,055 ■
1.TischlerBise calculation based on Maricopa Association of Governments 2015 and 2020 estimates.
2.Sq.Ft.per Job based on jobs and ITE 10th Edition(2017)multiplier.
3.Major sector is Construction.
4.Major sectors are Food Services and Retail Trade.
5.Major sectors are Educational Services and Public Administration.
6.Major sectors are Health Care and Realestate Rental and Leasing.
1 ESRI Business Summary Reports provide demographic and business data for geographic areas from
sources including directory listings such as Yellow Pages and business white pages; annual reports; 10-K
and Securities and Exchange Commission (SEC) information; federal, state, and municipal government
data; business magazines; newsletters and newspapers; and information from the US Postal Service. To
ensure accurate and complete information, ESRI conducts annual telephone verifications with each
business listed in the database.
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Nonresidential Square Footage Estimates
To estimate current nonresidential floor area, ITE square feet per employee multipliers (Figure A6) are
applied to 2018 employment estimates shown in Figure A5. For industrial development, light industrial(ITE
110) is the prototype for future development, with an average of 615 square feet per job. For future
commercial / retail development, an average size shopping center (ITE 820) is a reasonable proxy with an
average of 427 square feet per job. For future institutional development, elementary school (ITE 520) is a
reasonable proxy with 1,076 square feet per job. The prototype for future office and other services
development is a general office (ITE 710). This type of development averages approximately 337 square
feet per job. Based on this methodology,TischlerBise estimates Fountain Hills has 2,589,055 square feet of
nonresidential floor area.
Figure A6:The Institute of Transportation Engineers, Employee and Building Area Ratios
ITE Demand Wkdy Trip Ends Wkdy Trip Ends Emp Per Sq Ft
Land Use/Size
Code Unit Per Dmd Unit' Per Employee' Dmd Unit Per Emp
7. . 1,000 Sq Ft la
130 Industrial Park 1,000 Sq Ft 3.37 2.91 1.16 864
140 Manufacturing 1,000 Sq Ft 3.93 2.47 1.59 628
150 Warehousing 1,000 Sq Ft 1.74 5.05 0.34 2,902
254 Assisted Living bed 2.60 4.24 0.61 na
310 Hotel room 8.36 14.34 0.58 na
320 Motel room 3.35 25.17 0.13 na
520 Elementary School 1,000 Sq Ft 19.52 21.00 0.93 1,076
530 High School 1,000 Sq Ft 14.07 22.25 0.63 1,581
540 Community College student 1.15 14.61 0.08 na
565 Day Care student 4.09 21.38 0.19 na
610 Hospital 1,000 Sq Ft 10.72 3.79 2.83 354
620 Nursing Home bed 3.06 2.91 1.05 na
710 General Office(average size) 1,000 Sq Ft 9.74 3.28 2.97 337
720 Medical-Dental Office 1,000 Sq Ft 34.80 8.70 4.00 250
730 Government Office 1,000 Sq Ft 22.59 7.45 3.03 330
750 Office Park 1,000 Sq Ft 11.07 3.54 3.13 320
760 Research&Dev Center 1,000 Sq Ft 11.26 3.29 3.42 292
770 Business Park 1,000 Sq Ft 12.44 4.04 3.08 325
820 Shopping Center(average size) 1,000 Sq Ft 37.75 16.11 2.34 427
1.Trip Generation,Institute of Transportation Engineers,10th Edition(2017).
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MI li.
Employment and Nonresidential Floor Area Projections
Future employment growth in Fountain Hills is based on Maricopa Association of Governments 2020-
2030 employment projections, by industry. To project growth in nonresidential square footage,
TischlerBise applies the previously discussed ITE square feet per employee multipliers to the projected
increase in employment.The results of these calculations are shown in Figure A7. Over the next 10 years,
Fountain Hills is projected to gain 872 jobs and add an estimated 431,000 square feet of nonresidential
development.
Figure A7: Nonresidential Development Projections
2018 I 2019 I 2020 I 2021 I 2022 I 2023 I 2028 10-Year
Base 1 2 3 4 5 10 Increase
Employment
Industrial 455 458 462 464 466 468 477 22
Commercial 2,838 2,871 2,938 2,981 3,025 3,069 3,300 462
Institutional 469 478 502 512 523 534 592 123
Office 1,759 1,793 1,887 1,904 1,920 1,937 2,024 265
Total Employment 5,521 5,600 5,789 5,861 5,934 6,008 6,393 872
Nonresidential Floor Area(KSF)
Industrial 280 282 284 285 286 288 293 13
Commercial 1,212 1,226 1,255 1,273 1,291 1,310 1,409 197
Institutional 505 514 540 551 563 575 637 132
Office 593 604 636 642 647 653 682 89
Total Floor Area 2,590 2,626 2,715 2,751 2,787 2,826 3,021 431
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AVERAGE WEEKDAY VEHICLE TRIPS
Average Weekday Vehicle Trips are used as a measure of demand by land use. Vehicle trips are estimated
using average weekday vehicle trip ends from the reference book, Trip Generation, 10th Edition, published
by the Institute of Transportation Engineers (ITE) in 2017. A vehicle trip end represents a vehicle entering
or exiting a development (as if a traffic counter were placed across a driveway).
Trip Rate Adjustments
To calculate street development fees, trip generation rates require an adjustment factor to avoid double
counting each trip at both the origin and destination points. Therefore, the basic trip adjustment factor is
50 percent. As discussed further below, the development impact fee methodology includes additional
adjustments to make the fees proportionate to the infrastructure demand for particular types of
development.
Commuter Trip Adjustment
Residential development has a larger trip adjustment factor of 63 percent to account for commuters
leaving Fountain Hills for work. According to the 2009 National Household Travel Survey (see Table 30)
weekday work trips are typically 31 percent of production trips (i.e., all out-bound trips, which are 50
percent of all trip ends). As shown in Figure A8, the U.S. Census Bureau's OnTheMap web application
indicates that 84 percent of resident workers traveled outside of Fountain Hills for work in 2015. In
combination,these factors (0.31 x 0.50 x 0.84 = 0.13) support the additional 13 percent allocation of trips
to residential development.
Figure A8: Commuter Trip Adjustment
Trip Adjustment Factor for Commuters'
Employed Residents 9,155
Residents Working in Fountain Hills 1,495
Residents Working Outside Fountain Hills(Commuters) 7,660
Percent Commuting out of Fountain Hills 84%
Additional Production Trips2 13%
Residential Trip Adjustment Factor 63%
1.U.S.Census Bureau,OnTheMap Application(version 6.5)and LEHD Origin-Destination
Employment Statistics,2015.
2.According to the National Household Travel Survey(2009)*,published in December 2011 (see
Table 30),home-based work trips are typically 30.99 percent of"production"trips,in other words,
out-bound trips(which are 50 percent of all trip ends).Also,LED OnTheMap data from 2015
indicate that 84 percent of Fountain Hills'workers travel outside the town for work.In combination,
these factors(0.3099 x 0.50 x 0.84=0.12964686)account for 13 percent of additional production
trips.The total adjustment factor for residential includes attraction trips(50 percent of trip ends)
plus the journey-to-work commuting adjustment(13 percent of production trips)for a total of 63
percent.
*http://nhts.ornl.gov/publications.shtml;Summary of Travel Trends-Table"Daily Travel Statistics by
Weekday vs.Weekend"
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Adjustment for Pass-By Trips
For commercial development, the trip adjustment factor is less than 50 percent because retail
development attracts vehicles as they pass by on arterial and collector roads. For example,when someone
stops at a convenience store on the way home from work, the convenience store is not the primary
destination. For the average shopping center, ITE data indicate 34 percent of the vehicles that enter are
passing by on their way to some other primary destination. The remaining 66 percent of attraction trips
have the commercial site as their primary destination. Because attraction trips are half of all trips,the trip
adjustment factor is 66 percent multiplied by 50 percent, or approximately 33 percent of the trip ends.
Estimated Residential Vehicle Trip Rates
As an alternative to simply using the national average trip generation rate for residential development,the
Institute of Transportation Engineers (ITE) publishes regression curve formulas that may be used to derive
custom trip generation rates, using local demographic data. Key independent variables needed for the
analysis (i.e. vehicles available, housing units, households, and persons) are available from American
Community Survey data. Shown in Figure A9, custom trip generation rates for Fountain Hills vary slightly
from the national averages. For example, single-family residential development is expected to generate
7.29 average weekday vehicle trip ends per dwelling—compared to the national average of 9.44(ITE 210).
Multi-family residential development is expected to generate 3.63 average weekday vehicle trip ends per
dwelling, which is lower than the national average of 5.44 (ITE 221).
Figure A9:Average Weekday Vehicle Trip Ends by Housing Type
Households by Structure Type2
Vehicles Vehicles per HH
Tenure of Unit Single-Family Multi-Family Total
Available' by Tenure
Owner-occupied 17,046 8,252 968 9,220 1.85
Renter-occupied 3,664 1,087 1,370 2,457 1.49
Total 20,710 9,339 2,338 11,677 1.77
Type of Unit Persons in Trip Vehicles by Trip Average Housing Trip Ends per Unit
Households' Ends' Type of Unit Ends5 Trip Ends Units`' Fountain Hills I U.S.Avg7
Single-Family 20,097 55,971 16,877 110,006 82,989 11,381 7.29 9.44
Multi-Family 3,881 8,806 3,833 15,394 12,100 3,334 3.63 5.44
Total 23,978 64,778 20,710 125,400 95,089 14,715 6.46
1.Vehicles available by tenure from Table B25046,American Community Survey,2013-2017 5-Year Estimates.
2.Households by tenure and units in structure from Table B25032,American Community Survey,2013-2017 5-Year Estimates.
3.Total population in households from Table B25033,American Community Survey,2013-2017 5-Year Estimates.
4.Vehicle trips ends based on persons using formulas from Trip Generation(ITE 2017).For single-family housing(ITE 210),the fitted curve equation is
EXP(0.89*LN(persons)+1.72).To approximate the average population of the ITE studies,persons were divided by 36 and the equation result multiplied by 36.For multi-
family housing(ITE 221),the fitted curve equation is(2.29*persons)-81.02.
5.Vehicle trip ends based on vehicles available using formulas from Trip Generation(ITE 2017).For single-family housing(ITE 210),the fitted curve equation is
EXP(0.99*LN(vehicles)+1.93).To approximate the average number of vehicles in the ITE studies,vehicles available were divided by 66 and the equation result multiplied
by 66.For multi-family housing(ITE 221),the fitted curve equation is(3.94*vehicles)+293.58.
6.Housing units American Community Survey,2013-2017 5-Year Estimates.
7.Trip Generation,Institute of Transportation Engineers,10th Edition(2017).
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Fountain Hills,Arizona
Functional Population
TischlerBise recommends functional population to allocate the cost of certain facilities to residential and
nonresidential development.As shown in Figure A10,functional population accounts for people living and
working in a jurisdiction. OnTheMap is a web-based mapping and reporting application that shows where
workers are employed and where they live. It describes geographic patterns of jobs by their employment
locations and residential locations as well as the connections between the two locations. OnTheMap was
developed through a unique partnership between the U.S. Census Bureau and its Local Employment
Dynamics (LED) partner states.
Residents that do not work are assigned 20 hours per day to residential development and four hours per
day to nonresidential development (annualized averages). Residents that work in Fountain Hills are
assigned 14 hours to residential development and 10 hours to nonresidential development. Residents that
work outside Fountain Hills are assigned 14 hours to residential development. Inflow commuters are
assigned 10 hours to nonresidential development. Based on 2015 functional population data for Fountain
Hills,the proportionate share is 81 percent for residential development and 19 percent for nonresidential
development.
Figure A10: Functional Population
Demand Units in 2015 Demand Person Proportionate
Hours/Day Hours Share
Residential
Peak Population 28,282
Residents Not Working 19,127 20 382,540
Employed Residents 9,155
Employed in Service Area 1,495 14 20,930
Employed outside Service Area 7,660 14 107,240
Residential Subtotal 510,710 81%
Nonresidential
Non-working Residents 19,127 4 76,508
Jobs in Service Area 4,424
Residents Employed in Service Area 1,495 10 14,950
Non-Resident Workers(inflow Commuters) 2,929 10 29,290
Nonresidential Subtotal 120,748 19%
TOTAL 631,458, 100%
Source:Maricopa Association of Governments 2015 Population Estimate,Fountain Hills;U.S.Census Bureau,OnTheMap 6.5 Application,2015.
T�schlerl ise 56
r(KA/1 ECONOMIC PLANNING
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DRAF1 Land Use Assumptions,HP,and Development Fee Report
Fountain Hills,Arizona
APPENDIX B: LAND USE DEFINITIONS
Residential Development
As discussed below, residential development categories are based on data from the U.S. Census Bureau,
American Community Survey. Fountain Hills will collect development fees from all new residential units.
One-time development fees are determined by site capacity(i.e. number of residential units).
Single-Family:
1. Single-family detached is a one-unit structure detached from any other house, that is, with open
space on all four sides. Such structures are considered detached even if they have an adjoining
shed or garage.A one-family house that contains a business is considered detached as long as the
building has open space on all four sides.
2. Single-family attached (townhouse) is a one-unit structure that has one or more walls extending
from ground to roof separating it from adjoining structures. In row houses (sometimes called
townhouses), double houses, or houses attached to nonresidential structures, each house is a
separate, attached structure if the dividing or common wall goes from ground to roof.
3. Mobile home includes both occupied and vacant mobile homes, to which no permanent rooms
have been added, are counted in this category. Mobile homes used only for business purposes or
for extra sleeping space and mobile homes for sale on a dealer's lot, at the factory, or in storage
are not counted in the housing inventory.
Multi-Family:
1. 2+ units (duplexes and apartments) are units in structures containing two or more housing units,
further categorized as units in structures with "2, 3 or 4, 5 to 9, 10 to 19, 20 to 49,and 50 or more
apartments."
2. Boat, RV, Van, Etc. includes any living quarters occupied as a housing unit that does not fit the
other categories(e.g.,houseboats,railroad cars,campers,and vans). Recreational vehicles,boats,
vans, railroad cars, and the like are included only if they are occupied as a current place of
residence.
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Nonresidential Development
The proposed general nonresidential development categories (defined below) can be used for all new
construction within Fountain Hills. Nonresidential development categories represent general groups of
land uses that share similar average weekday vehicle trip generation rates and employment densities(i.e.,
jobs per thousand square feet of floor area).
Commercial / Retail: Establishments primarily selling merchandise, eating/drinking places, and
entertainment uses. By way of example, Commercial/Retail includes shopping centers, supermarkets,
pharmacies, restaurants, bars, nightclubs, automobile dealerships, and movie theaters, hotels, and
motels.
Industrial: Establishments primarily engaged in the production, transportation, or storage of goods. By
way of example, Industrial includes manufacturing plants, distribution warehouses, trucking companies,
utility substations, power generation facilities, and telecommunications buildings.
Institutional: Establishments including public and quasi-public buildings providing educational, social
assistance, or religious services. By way of example, Institutional includes schools, universities, churches,
daycare facilities, government buildings, and prisons.
Office and Other Services: Establishments providing management, administrative, professional, or
business services; personal and health care services. By way of example,Office and Other Services includes
banks,business offices,assisted living facilities,nursing homes,hospitals,medical offices,and veterinarian
clinics.
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Fountain Hills,Arizona
APPENDIX C: FORECAST OF REVENUES
The"Required Offset" percentage reduction is a placeholder that will be discussed in more detail at a later
date. Arizona's Enabling Legislation requires municipalities to forecast the revenue contribution to be
made in the future towards capital costs and shall include these contributions in determining the extent
of burden imposed by development. TischlerBise sometimes recommends a small percentage reduction
in development fees to satisfy the "required offset," which is a phrase taken directly from the enabling
legislation (quoted below).
9-463.05.E.7. "A forecast of revenues generated by new service units other than development fees,
which shall include estimated state-shared revenue, highway users revenue,federal revenue, ad
valorem property taxes, construction contracting or similar excise taxes and the capital recovery
portion of utility fees attributable to development based on the approved land use assumptions,
and a plan to include these contributions in determining the extent of the burden imposed by the
development as required in subsection B, paragraph 12 of this section."
9-463.05.8.12. "The municipality shall forecast the contribution to be made in the future in cash
or by taxes, fees, assessments or other sources of revenue derived from the property owner
towards the capital costs of the necessary public service covered by the development fee and shall
include these contributions in determining the extent of the burden imposed by the development.
Beginning August 1, 2014, for purposes of calculating the required offset to development fees
pursuant to this subsection, if a municipality imposes a construction contracting or similar excise
tax rate in excess of the percentage amount of the transaction privilege tax rate imposed on the
majority of other transaction privilege tax classifications, the entire excess portion of the
construction contracting or similar excise tax shall be treated as a contribution to the capital costs
• of necessary public services provided to development for which development fees are assessed,
unless the excess portion was already taken into account for such purpose pursuant to this
subsection."
Fountain Hills does not have a higher than normal construction excise tax rate, so the required offset
described above is not applicable. The required forecast of non-development fee revenue that might be
used for growth-related capital costs is shown in Figure C1.The forecast of revenues was provided by the
Town of Fountain Hills. Projected population plus jobs, for the entire Municipal Planning Area, are
documented in the land use assumptions.
Figure Cl: Five-Year Revenue Projections
Source I FY 18-19 I FY 19-20 I FY 20-21 I FY 21-22 I FY 22-23
Intergovermental $ 5,485,747 $ 5,510,550 $ 5,535,610 $ 5,560,903 $ 5,586,457
Permits,Licenses,Fees $ 1,161,061 $ 1,080,158 $ 1,122,024 $ 1,116,202 $ 1,153,139
Building Revenue $ 556,662 $ 588,802 $ 554,104 $ 576,366 $ 793,042
Local Taxes $ 9,067,725 $ 9,103,363 $ 9,442,027 $ 9,758,534 $ 10,097,493
Total General Fund $ 16,271,195 $ 16,282,873 $ 16,653,765 $ 17,012,005 $ 17,630,131
Source:Town of Fountain Hills 2018-2023 Revenue Projections.
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