Loading...
The URL can be used to link to this page
Your browser does not support the video tag.
Home
My WebLink
About
Res 2020-03
RESOLUTION NO. 2020-03 A RESOLUTION OF THE MAYOR AND COUNCIL OF THE TOWN OF FOUNTAIN HILLS, ARIZONA, ADOPTING DEVELOPMENT FEES IN COMPLIANCE WITH 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) 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, (i)the LUA and IIP were released to the public, (ii)the Town Council held a public hearing on September 17, 2019 to receive public comment on the LUA/IIP, and (iii)the Town Council approved Resolution 2019-53 on November 5, 2019, adopting the LUA/IIP and giving notice of its intent to assess development fees; and WHEREAS, in accordance with the Development Fee Statute, the Town Council held a public hearing on December 17, 2019 on the document entitled Development Fee Report, dated November 5, 2019, prepared by TischlerBise (the "Preliminary Development Fee Study"); and WHEREAS, the Preliminary Development Fee Study has been updated to include comments received from the public, including representatives of the development community (the updated document is referred to as the "Final Development Fee Study"); and WHEREAS, the Town Council desires to conclude the second phase of the development fee adoption process by approving the Final Development Fee Study. 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 Final Development Fee Study is hereby adopted in substantially the form and substance of Exhibit A, attached hereto and incorporated herein by reference. SECTION 3. In accordance with the Development Fee Statute, the development fees set forth in the Final Development Fee Report shall not be effective until 75 days after the date of this Resolution. 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 2020-03 PAGE 2 PASSED AND ADOPTED by the Mayor and Council of the Fountain Hills, Maricopa County, Arizona, this 21st day of January, 2020. FOR THE TOWN OF FOUNTAIN HILLS: ATTESTED TO: dt,2_?r Ginney, Mayor Elizabeth rke, Town C erk REVIEWED BY: APPROVED AS TO FORM: • • Grady E. Mill: , o n Manager Aaron D. Arnson, Town Attorney RESOLUTION 2020-03 PAGE 3 EXHIBIT A TO RESOLUTION NO. 2020-03 [Final Development Fee Study] See following p9 a es. Land Use Assumptions, Infrastructure Improvements Plan, and Development Fee Report Prepared for: Town of Fountain Hills, Arizona January 21, 2020 TischlerBise FISCAL I ECONOMIC I PLANNING 4701 Sangamore Road Suite S240 Bethesda,MD 20816 301.320.6900 www.TischlerBise.com Land Use Assumptions,IIP,and Development Fee Report Fountain Hills,Arizona [PAGE INTENTIONALLY LEFT BLANK] 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 Tisc ras use Land Use Assumptions,IIP,and Development Fee Report Fountain Hills,Arizona 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 58 Nonresidential Development 59 APPENDIX C:FORECAST OF REVENUES 60 TlschlerB!se ii 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. Taschler ise 1 FOCA(I ECONOMICS PLANNING Land Use Assumptions,IIP,and Development Fee Report Fountain Hills,Arizona 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. TischlerBise 2 F,KA, 1 ECONOMIC 4 PLANNING Land Use Assumptions,IIP,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. 3 TischIerBlse Land Use Assumptions,lip,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). Tlschle B 4 ise Land Use Assumptions,IIP,and Development Fee Report 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). Tisch el Bise 5 Fuca.,I ECONOMIC I PLANNING Land Use Assumptions,IIP,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 Eagi "�---es Nest 1 q�f you ---"-_. , Sunridgr Canyon Fountain Lake • .y. • Crestview • Cr .11'8, ». -. Desert C w • Flrerock y .•,o, , ,. Eagle M Taschler ise 6 rylrAt I ECONOMIC%PLANNING Land Use Assumptions,IIP,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 iiti ir{{iceq/ tf g ; r ..' �!� . , ��' , - `" 1 . �l 10110 -00( 'ill'ilePir.",44411kgwe ANL . , :" taf, P..5,....tir, � • ���% Air `t\ , , . A t- :Mr; 4VastA .iy 11,, 4%,r/2-1.4-z,,,,„,_ -.0r.:," 101"';',11-!11 'if' 1010;:t1r4. t-oe:4 - #/$4.N.:4. avyt,,,,,,-.44.,,,,, .,.: -x<,,.4#4.'wvArine - . T 13E ) X /) r ''„ c,-1,,io_iati, :! ""_-a' , . \'/ k ' ..*; s.. ,t /.,_._ , i"�Y � 0.:020.46:‘,,i,...tr-eirirat!‘7,,,.,,,;c1,;.1(,:;-_:-i! ttift\14 N F4(! J ��C"c�i't�it .......... �jttl(R�t11arkYI t, w ��. 1 w i Ai -y 1► 'i1V•' --,� jllx�i fir.' c �f .-/ , / ���� 'I'/n s��Y 4..�'t�.���„�,�C `•wryr r4`.f4 Rig.. .3:'.ri'-t,fit. � A'�'�.o_'/�' �l;; y R..,.$�%,44, ar-:+4,.mt,� t t-�'�r atilt ';'� � 2 i� rt.�i�� 1ltIN,,`IIjiiIt'te�•p�g.r. ._cY44`�r/��: ..'�\` �, rt LEGEND !9, " .. ie:: IV' ` .S:r,. + ', ZONNIO DISiRIGT BOUNDARY 1;x f�1,�Z4 w* +� w'.' `I i '' ` ..fit t8 ...�».. BOUNDARY DELINEATWO xotnw�t •?�''. 1iiiiii1 ' I. �a 'a*:.,ritnr.. ,, UNIT PLANS E NEATINDEVELOPMENT 41.4• r % �� k /C ji� `v 4 /. ...own. CORPORATE LIMITS +..', •,t,ry w'r .w;fyMf 's.4iii� 4'Wri •Itj�1 l ye::`r'�'tir'.�t� a.L iiit i , ...tit -imsturk ,sA. '',.-..xylo ./4 Augh--4L-,. .4. .--..„-.t. -.r w iz % ir c :r ., ♦• �n! 1,.. � aa '+ ♦100.‘ �� {Ali .- fir �, �/ r ._ w ft-, tai :,„,..„...06. A.,,,..: AO -,... �� 4.�w,,*.' rt Pr, I! A it a�4;t l-es �'� ,*j�i��� ?,�7i�i��'� •7 /J^mi l�.! tit �p frislits,:3i*: 4 kr ill, 4 .4`1,41:0' "iv r. : .' 1 •••i: A O'Atry Vika: ti. 0 AT"; Igilk 4` 0‘.:* ginjukagait.,,,w,44 4 •N :',.k.''P' :,ttio "?&Of' ri'vrPttwoivi--,:Ls-41$1,74,44-17 •-• ,,,uft N4 MkipA WCl i i»rMI.R TischlerBise ,,SC At I ECONOMIC 4 Pt.ANNING Land Use Assumptions,HP,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 TischlerBise 8 FtSCA* I EGLINOMIG f{'+LAto.NG Land Use Assumptions,IIP,and Development Fee Report Fountain Hills,Arizona 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 TischlerBise 9 FtS CAI.I ECONOMIC¢Pt ANNING 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 $2.21 Tischier use 10 rtSCM 1 ECONOMIC I PiA$MING Land Use Assumptions,IIP,and Development Fee Report Fountain Hills,Arizona 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. Taschler ise 11 1 ECONOMIC I PI ANMING Land Use Assumptions,IIP,and Development Fee Report 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 Residential' Nonresidential2 Total Residential Nonresidential Residents Commuters 28,282 2,929 10,322,928 732,250 11,055,178 93% 7% 1.Days per Year=365 365 2.Days per Year=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. Tisch ise 12 FICA&I ECONOMIC}PLANNING Land Use Assumptions,IIP,and Development Fee Report Fountain Hills,Arizona 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 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." TischlerBise 13 !ECONOMIC *vNING Land Use Assumptions,HP,and Development Fee Report Fountain Hills,Arizona 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 perJob 0.00161 Cost per Job I $64.41 1. Includes infrastructure costs but excludes acquisition costs. Tlia-lreatise 14 ,...nNOMIC PLAMMNG Land Use Assumptions,IIP,and Development Fee Report 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 DV-Multi Use Field 3 $475,000 $1,425,000 DV-Parking Lot 1 $525,938 $525,938 DV-Playground(5-12 YO) 1 $230,000 $230,000 DV-Ramada 8 $84,000 $672,000 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. TischlerBise 15 • ,,ONOMIC I PIA.NING Land Use Assumptions,IIP,and Development Fee Report 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 Non residential Nonresidential Share 7% 2018 Jobs 5,521 Amenities perJob 0.00089 Cost perJob I $280.24 Tisch rlise B 16 F15CAl I ECONOMIC 3 Pt ANN NG Land Use Assumptions,IIP,and Development Fee Report 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. 17TichlrBuse I *WANG Land Use Assumptions,IIP,and Development Fee Report 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 $1,785,832 h 18TisleBise „At I€cc,NOMic PtA,..,NG Land Use Assumptions,IIP,and Development Fee Report Fountain Hills,Arizona 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 ( Timeframe I Cost Developed Park Land 2019-2028 $410,443 Park Amenities 2019-2028 $1,785,832 Total $2,196,275 Tisch relise B 19 FtStipt I Ft '.'S IC 3 PLANNING Land Use Assumptions,IIP,and Development Fee Report Fountain Hills,Arizona 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 Decrease 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 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 TischlerBise 20 PLANNING Land Use Assumptions,IIP,and Development Fee Report 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 $2,212,915 h 21Tisl rBise f+sc�, i - Land Use Assumptions,IIP,and Development Fee Report 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. Tis i i rise 22 61SCAt([l ^..'iMIC 1 RLAHNING Land Use Assumptions,HP,and Development Fee Report 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 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 F1, 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 F1: 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 7,660 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:U.S.Census Bureau,OnTheMap 6.5 Application and LEHD Origin-Destination Employment Statistics,2015. Tischl rise 23 • I nmom,c R Pi AWNING Land Use Assumptions,IIP,and Development Fee Report Fountain Hills,Arizona 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 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." Tischler ise 24 i tSC.AI I ECONOMIC i Pi., NC, Land Use Assumptions,IIP,and Development Fee Report 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 I 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 ( $51.28 Tisch erlise B 25 Land Use Assumptions,IIP,and Development Fee Report Fountain Hills,Arizona 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 ( $2.24 Nonresidential Nonresidential Share 19% 2018 Jobs 5,521 Units perJob 0.0011 Cost per Job ( $2.74 Ti chle ise 26 .. I ECONOMIC t PLANNING Land Use Assumptions,lIP,and Development Fee Report 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% 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 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. Tischler ise 27 i[SCAL I ECONOMIC I PLANNING Land Use Assumptions,lip,and Development Fee Report 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 perJob Need for Fire Apparatus Year Peak Jobs Residential Nonresidential Total 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 $2,492 0.0011 Units per Job Need for Fire Equipment Peak Total Jobs Residential Nonresidential Year 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 $7,237 TischlerBise 28 FISCAL I ECONOMIC t Pt.ANNiNG Land Use Assumptions,IIP,and Development Fee Report 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 $142,458 Tischleratse 29 nscAt I[CONOMIC i 1h.M$ING Land Use Assumptions,lip,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 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 1,000 Sq. Ft Fees Fees )perP?sP 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. TischlerBuse 30 itSCAI 1 PL.'•''r�i. Land Use Assumptions,HP,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 $159,098 T, tuse 31 Land Use Assumptions,lip,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. Tisch risel B 32 • I ECONOMIC 9 PLANNING Land Use Assumptions,IIP,and Development Fee Report Fountain Hills,Arizona 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 Wkdy 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. TischlerBise 33 ctsGAt ONOMIC 6 VL AHNING Land Use Assumptions,lIP,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 52, 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 Trips' 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" 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. Taschler ise 34 Fesc.,I ECONOMIC i Ft n14r41w Land Use Assumptions,IIP,and Development Fee Report Fountain Hills,Arizona 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." 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. TischlerBuse 35 • 1 ECONOMIC?PLANNING Land Use Assumptions,IIP,and Development Fee Report Fountain Hills,Arizona 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 a Multi-Family Units 4,823 4,860 4,897 4,935 4,973 5,011 5,208 385 a. 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 9' 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 s 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 43 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 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 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 TischlerBise 36 t ECONOMIC 3 PtANNING Land Use Assumptions,IIP,and Development Fee Report Fountain Hills,Arizona 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 1 ITE 1 Weekday 1 Dev 1 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 ✓ Multi-Family Units 4,823 4,860 4,897 4,935 4,973 5,011 5,208 385 E Industrial KSF 280 282 284 285 286 288 293 13 Q v Commercial KSF 1,212 1,226 1,255 1,273 1,291 1,310 1,409 197 0a• 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 v, L Multi-Family Trips 11,030 11,114 11,200 11,286 11,373 11,460 11,910 880 ✓ Residential Trips 49,815 50,196 50,580 50,967 51,357 51,751 53,773 3,958 LE 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 - 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 > 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 ►- 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 rpc 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 Tisch) re Bise 37 cONOMIC,Vl#NNING Land Use Assumptions,HP,and Development Fee Report 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 55: Planned Arterial Improvements New Lane Total Other Arterial Street Improvements 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 TischlerBuse 38 ECOMOMIC i PtA, Land Use Assumptions,lIP,and Development Fee Report 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 TischlerBise 39 cc as I Et""•',MIC;Pt.AN ING Land Use Assumptions,IIP,and Development Fee Report 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 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 Tischler ise 40 Land Use Assumptions,IIP,and Development Fee Report 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 58. 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 Arterial 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 1 Trip Ends Adjustment Adjustment Fees Fees Decrease 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 Trip Ends Adjustment Adjustment Fees Fees 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 TischlerBise 41 F,„AM I ECONOMIC t pL ANMNG Land Use Assumptions,lip,and Development Fee Report Fountain Hills,Arizona 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 $2,661,909 Total Expenditures $2,657,140 Tisch rel rel Bise 42 • ONOMIC,Pi ANNtNG Land Use Assumptions,IIP,and Development Fee Report 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. Taschler ise 43 Fr5CAc fNOMIC!G1 A14MNG Land Use Assumptions,llp,and Development Fee Report Fountain Hills,Arizona Figure Al:Current Development Fee Service Areas 4 . 4 ., 4 . 2,..idootr...u. ,,,,,.. , ,c..,,,,vt, A,.,,,, i ,,,,,,p . ,„„,sec' — *ts�Mla" . F untaIn it ks ,,,,, , .4,, '''''' , ,4 . 4 .. ,i4 ',.,,,.,.; ' '1%.. " ry < a s '4 o 1 , r , Tisch el Buse 44 Land Use Assumptions,IIP,and Development Fee Report Fountain Hills,Arizona Figure A2: Proposed Development Fee Service Areas ' ` l'y r ''''ii MO *-'6'''' 43.P4B.f*. '''" ''4 Aro* '.-- 11144 -till ( Atiorw,416,4i.g., .;,,,..."41111111k;•A ..ATaiki.,,' ...•,'114gb.--g-t,...*A' .. ',..„, . 1 4140'114‘'Ill,. .1"1 -.111 .$14 ''il4P' -11.-‘14:1Ffroo***.jili,'144...,4.V--....-,--14V2-7- ► te �lIMr` \ w. a :- A.A. �` 4 fir Iy+r l. � it filet! ''. At Milive..$11111111110(0,Z,*.4 ...--. \-,,,,,, 4,,t .:.- '; . ' .'4,,,,,,....'. *V.,:--,,..,";•:-.*•-,ciVa,,, j\s--N,,,,4 tea'.. t. \ P•� y + . 'yr,.,. ''Y' .`„r.�_ T Y. 't, t''MF' ,r��'.�.r . i 1 �tiilts. F° ?i' t �. •: ` \\ ` y r ` :a• " e., 1 i.'1 ' /4 4'Z'''',,kt".k,* 7'4-.... , . 44. I -4'• '" I .")°,,,,,,‘-- ' "- ' Et*, -",,' „",Nt., , , , L,... �� y��'p- ) fi, Mr�(y' Y44 ' t5flaff! ! V•IV`' /1 M 0 '''"‘''',:; -'''0..kcC : it .': '.:.,.••'''&.ty,',,,:' '-..'',., - __44..r" v, ,.', ---.'k . .,•. 4.,..,,;:coi pi i s • 0. , -4, •,tio A kifiiii .,,,,,N.--.: 1%-._- Ito atz:,. ., .;,,,,. 4 ,.....,...,:r _____,4v, ,a4iii et 1116%) ., ,4-: ,4 s W ``/`� E +^ 4 .���• . s131L of 1�"- `i t. 1jej4 '��t) A . 4i i T ,ry ,„,,,\ ,,i / r: "ij�`% *Y r �� l.r�, Mrs ,N ,3:4 ,4 + ,. ���4 ._ r .�' LEGEND rf O a'! i•. 4,,... ,� ',. lIC1l� M,,--,4,!Or -t.l�, n '"t ty ZONING DISTRICT BOUNDARY •44... '* �1� '+r•.� �r�.► a »...».. BOUNDARY DELINEATING :Om�.k r,�.' A ,# %1(�� l `'4Eift.! ; 4..4' . .,•.... :.—rr .. iNtl PLANS OF DEVELOPMENT I ',��� ��`0", .•. ► I,.+�,•r. ', - al.. �..�w�.w CORPORATE LIMITS •',I APA ..,'eq �7 . ,il:41149a...4.,, ,•Ai `l• ...1` • ..`..,,_.,�L. '"464!,.';'.. . e:, • P.•.S,'.4 •I �� /ark; , .it " ..�w�•`f ,0. sr i �� t •., , 1 I f• .1►-•♦dry 04,1007Mod, No,,„ 41."ke..'S-t.- 4r0,31.1pkt. -"gi, All, il:41 *''''''1 Ii4 Willa:h's-11.,,, ''',11"1-W----a:' ,0;kw 11 Altliq, ti".1'''' f4 4'441:4 C-, , 4I sit. oiy �" : i� *tow y ti 0 t f :•+° +�:: Ofi t psi _ ! i ��i/4 'fit` 5N'AIM 7w ..,cerA .R Y Woo*ITV TischlerBise 45 ,CSCAI.I Ct`.-•'::'+Mlc!RL..,„„NG Land Use Assumptions,IIP,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. TI chlersse 46 �:- 1 ECOM©MAC tl PIA NNING Land Use Assumptions,HP,and Development Fee Report Fountain Hills,Arizona 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(for 1990s and earlier, adjusted to yield total units in 2000). TischlerBise 47 ctscm [CONOMIC i PLANNING Land Use Assumptions,IIP,and Development Fee Report Fountain Hills,Arizona 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 Unitl 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. TischlerBise 48 FIKAI 0 4NOMIC , •'-•`C, Land Use Assumptions,HP,and Development Fee Report Fountain Hills,Arizona 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. Tisch el rise 49 F scA °NOMIC S Pi,$N NG Land Use Assumptions,HP,and Development Fee Report Fountain Hills,Arizona 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 TISCfI�er ise 50 -. I ECONOMIC I PLANNING Land Use Assumptions,HP,and Development Fee Report Fountain Hills,Arizona 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 Analyst1,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. TiEii tse 51 • • '..1MIiC$PIANMNG Land Use Assumptions,lip,and Development Fee Report Fountain Hills,Arizona 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 110 Light Industrial 1,000 Sq Ft 4.96 3.05 1.63 615 130 I ndustria I 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). TischlerBise 52 c,SCAt I EC:--.:,MIC 1 Pt AfeNING Land Use Assumptions,HP,and Development Fee Report Fountain Hills,Arizona 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(K5F) 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 53 TischlerBise • • 0MOMIC S PANNING Land Use Assumptions,HP,and Development Fee Report Fountain Hills,Arizona 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" 54 TischlerBise Land Use Assumptions,IIP,and Development Fee Report Fountain Hills,Arizona 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 Persons in Trip Vehicles by Trip Average Housing Trip Ends per Unit Type of Unit Households' Ends' Type of Unit Ends' Trip Ends Units Fountain Hills I U.S.Avg' 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). TischlerBuse Buse s5 �escat (ECONOMIC I Pt.'. "+G Land Use Assumptions,lip,and Development Fee Report 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 Person Proportionate Demand Units in 2015 Hours/Day Hours Share Residential Peak Population 28,282 Residents Not Working 19,127 20 382,540 Employed Residents 9,155 Er 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. TischlerBise 56 t ECONOMIC vn,,NG t Q a.., M 0 ►fl Ln N N M In N en N N Ql e-I O ►.. a LD N CO Ln N LD N LD 1. ,-I Ql M 00 m fl. O c rn in LO en O ,-I N co •-I ,-1 d• N fa L > a) N ,-i cc Q O u O u N '5 e-I C ILL L L C _ - N M Ln CO M N 0 N d' M M of N N rl a ,--I O N N N Cr) nO Ql 1 01 O 00 N E aa) COL 0o p ,--1 NI m M Ln O m N d- LD LD O N O OL ,-I M fl. N ,_- D O E c en e-i _ 41 CI' a I a a oo lD 00 en Ln No LD Tr N 01 LD L N Cr LD .-I N in 00 O e-1 a.., 00 N I. 00 -000 I. N O ,--I N Ct Ni Ln O en N en LO LD 01 ccoo Ii. >. •p 0 Ol O Ol Ln ct M Ni. LC r I N a a N M '-I d N u — I fB CO — Vi CO in N 00 in enLn 00 al tD .-1 Q1 ,-1O -I C a) Ln N 0 I� O LD o0 en01 tD .--I N ct O to Ln a., ,--1 ,-1 NJ in 01 N N en LD LD 01 C' 1 = a•' N 00 O 00 Lf1 en ,. LD f V E1 N 4-EN 01 I-1 Q a) a) Lrl v, ! , _ — 'Cr -- • N 00 Ql N ,-IQl N Ol O 01 01 N m O 00 01 N Ln in N Ln of Tr of LD c)u 0 0fD O Ln en of 0 O1 d- ,-1 In 01 e-I N en Ln LD al f Q Q N N O 00 Ln M M ,1 .o e I N -0 E cD N M e-1 C a) J '• a) 1n O O O O Ln M 01 O I-, Ol Ln i ++ ,-1 Ti- Ln 01 N , I Ln 00 00 fM 00 111 tD QN rI o0 O Co u1 01 0 N en Ln LD CO I O = O %D O CO Ln an�I m ,-i LD e•-I N • a �O ro (.1 M v — 00 m ,--1 co Ql cr N co oo o Ln M LD N 7:501 N ,--1 co LD LD en en 0 00 ,--I N in N � a N N 00 N. O 1� �' O u1 Ql O N m Ln LD 00 Ln Ql 00 Ln M fn e'•1 LD r-1 N .- (0 -CN N e-1 I -0 N +-. C V1 O_ +' en LD en Cl .o Ln m 0 LD e-1 M N N j a-' 00 o N N LD NJ N N en 00 O1 LO d- 00 N v N LD N 01 LD •r• O Ln 01 al N N Ln LO N j c 0 CI) N ". 01 007. M M .--I u, r I N i p ° N N e�-1 1 a Q •u j O a) O O o in if, ct e-I N V ..-I in en ,-I N e-I N M 1, LD CO ‘-I 0 tD 00 N Ln Ln 0- E a, e-1 LO 01 L11 0 Ln Ql CO N N in LD 1� { }' ci N N m Ql 00 M (.1 ,-i Ln ,-I N c p a (0N r-, E > 4 N 1 I_ a -0 p 0 c 00 CT N N N 00 N N 01 d- Ln O LD in N Ln N Ol 1. LD en 0 00 CO 00 Ln d- en ,-I > in Q �` O N Ln 00 Ct d of Ln 00 N N N Ln LD a) c0 X fp 0 N 01 00 en N ,-i Ln ei N N -p a N I a fa - C N u N N CO 01 0 Ol 00 ,-I 00 en 0 N LD Ct Lo 0 LD LD Ln N N 01 0 00 N ,-1 0 N V a) " 01 o n 0o M 00 N. (0 N NI Le) l LD LC 1 E a c O O a-1 al oo en (N e•i Ln ,--1 N C a a O co .O _ O Ln en co Ln 0o 0 a1 e-I -- O N Ln en 0 V 1 L>• Q. E L- N LD Ln m LD Ln N LL 00 ,-I 0 o1 01 WI co E 0 d co O co Tr co N CO In V1 N N in to "0 1 E �-' O V) 00 00 �t N e1 Ln ea e-1 Ni i•, E v °0 a N m `V a) �y i E Q 4.4 I CO I? N 0 ,, 0 Wz .u.) ? a L > C a) f0 /�y�,.. > Ln a D E fo a /LLI O a) CI4. > > 00 a./ >. a=. Q L / _ — = C io O C i-�.1, - O n E E •= a 6 u 0 C. -0 c 0 O �.....- E N F CD i -0u i- O 1 3 h-c, + °- E 47, u IQ 0 E u 10 .d � � O a 16 O a1 O E 7:1O O � O C s= O ow L v.) c CID O. a I iil ,e I- w _ u — O I- Z — U O I- A d D fo 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. Tisch el Bise 58 r" I ECONOMIC Pt.Afi.NING Land Use Assumptions,IIP,and Development Fee Report Fountain Hills,Arizona 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. Tusch Bise 59 ft$.G•4 I ECONOMIC 5 Pi MINING Land Use Assumptions,IIP,and Development Fee Report Fountain Hills,Arizona APPENDIX C: FORECAST OF REVENUES The"Required Offset" percentage reduction is a placeholderthat 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 Cl.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 C1: 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. TischlerBise 60 Ti {DMO � ive.1R