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HomeMy WebLinkAboutRes 2014-142119507.1 RESOLUTION NO. 2014-14 A RESOLUTION OF THE MAYOR AND COUNCIL OF THE TOWN OF FOUNTAIN HILLS, ARIZONA, ADOPTING THE TOWN’S LAND USE ASSUMPTIONS AND INFRASTRUCTURE IMPROVEMENTS PLAN AND ISSUING THE TOWN’S NOTICE OF INTENT TO ASSESS DEVELOPMENT IMPACT FEES ACCORDING TO STATE LAW. WHEREAS, Arizona’s enabling legislation for development fees, ARIZ. REV. STAT. § 9-463.05 (the “Development Fee Statute”) requires the Town to produce three integrated documents prior to assessing development fees: (i) the Land Use Assumptions (“LUA”), (ii) an Infrastructure Improvements Plan (“IIP”), and (iii) a Development Fee study based upon the LUA/IIP. The Development Fee Statute also requires a two-phase adoption process, whereby the LUA and IIP are reviewed, refined and adopted before the Development Fee Study is addressed; and WHEREAS, in accordance with the Development Fee Statute, the LUA and IIP were released to the public, and the Town Council held a public hearing on February 6, 2014, to receive public comment on the LUA/IIP; and WHEREAS, the Town Council desires to (i) conclude the first phase of the development fee adoption process by approving the IIP and LUA and (ii) initiate the second phase by issuing a notice of intent to assess development fees. NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COUNCIL OF THE TOWN OF FOUNTAIN HILLS as follows: SECTION 1. The recitals above are hereby incorporated as if fully set forth herein. SECTION 2. The Land Use Assumptions and Infrastructure Improvements Plan are hereby adopted in substantially the form and substance of Exhibit A, attached hereto and incorporated herein by reference. SECTION 3. The Town Council hereby gives notice of its intent to assess development fees and directs the Town Manager or his authorized designee to: (i) release to the public and post on the Town’s website the adopted LUA/IIP, in substantially the form and substance attached as Exhibit A and (ii) set a public hearing on the proposed development fees in accordance with applicable law. SECTION 4. The Mayor, the Town Manager, the Town Clerk and the Town Attorney are hereby authorized and directed to take all steps necessary to carry out the purpose and intent of this Resolution. 2119507.1 EXHIBIT A TO RESOLUTION NO. 2014-14 [Land Use Assumptions and Infrastructure Improvements Plan] See following pages. T O W N O FFOUNTAIN HILLS Land Use Assumptions and Infrastructure Improvements Plan Final Report March 10, 2014 Land Use Assumptions and Infrastructure Improvements Plan Town of Fountain Hills ARIZONA Final |March 10, 2014 2 Table of Contents Executive Summary ...................................................................................................................4 Development Impact Fee Adoption Procedures ......................................................................................4 Introduction ...............................................................................................................................6 Background .....................................................................................................................................................6 Qualifying Uses ..............................................................................................................................................7 Fee Calculations Under ARS § 9-463.05 ....................................................................................................7 Offsets .............................................................................................................................................................9 Other ...............................................................................................................................................................9 Methodologies ................................................................................................................................................9 Current Development Impact Fees ..........................................................................................................10 Land Use Assumptions ...........................................................................................................11 Infrastructure Improvements Plan ..........................................................................................14 Revenues from New Development and Offset Calculations ................................................................14 Existing Fund Balance ................................................................................................................................14 Fire & EMS...................................................................................................................................................15 Current Fire and EMS Facilities ...............................................................................................................15 Fire and EMS Service Level and Capacity .................................................................................................15 Fire and EMS Facility Expansions ...........................................................................................................15 Fire and EMS Service Units and EDUs...................................................................................................16 Fire and EMS Development Impact Fee and Capital Funding ...................................................................17 Parks and Recreation ...................................................................................................................................17 Current Park and Recreation Facilities.......................................................................................................17 Park and Recreation Service Level and Capacity .........................................................................................18 Park and Recreation Facility Expansions ..................................................................................................18 Park and Recreation Service Units and EDUs ..........................................................................................19 Park and Recreation Development Impact Fee and Capital Funding ...........................................................19 Trailhead Improvements / Open Space .......................................................................................................20 Law Enforcement ........................................................................................................................................20 Library and Museum ...................................................................................................................................20 Streets ............................................................................................................................................................21 List of Tables Table 1 Current Development Impact Fees (Except Streets)...................................................................11 Table 2 Current Streets Development Impact Fees ...................................................................................11 Table 3 Projected Population and Housing Units ......................................................................................12 Table 4 Projected Employment and Square Feet........................................................................................13 Table 5 FY 2012-13 Fund Balance by Fee Category ..................................................................................15 3 Table 6 Fire and EMS EDUs .........................................................................................................................17 Table 7 Current Neighborhood and Community Park Inventory (Acres)..............................................17 Table 8 Neighborhood and Community Park Service Level ....................................................................18 Table 9 Street Service Level Standard ...........................................................................................................21 List of Figures Figure 1 Fire & EMS Service Area Map .......................................................................................................16 Figure 2 Park and Recreation Facilities ........................................................................................................19 Abbreviations and Acronyms ARS –Arizona Revised Statutes CIP –Capital Improvements Plan DIFs, Impact Fees, or Development Fees –Development Impact Fees EDU –Equivalent Development Unit EMS –Emergency Medical Services ENR-CCI –Engineering News Record Construction Cost Index Fee Report –Development Impact Fee Report FY –Fiscal Year IIP –Infrastructure Improvements Plan LOS –Level of Service LUA –Land Use Assumptions MPC –Municipal Property Corporation NPS –Necessary Public Services RCN –Replacement Cost New RFC –Raftelis Financial Consultants SB –Senate Bill SFR –Single-Family Residential Sq. Ft.–Square Foot or Feet 4 Executive Summary The Town of Fountain Hills (Town) retained the team of Raftelis Financial Consultants, Inc. (RFC or Raftelis)1 , to complete an update of the Town’s development impact fees for compliance with the requirements of Arizona Revised Statutes (ARS) § 9-463.05. Under the updated requirements of ARS §9-463.05 a development impact fee study is segmented into three major components as follows: 1.The Land Use Assumptions (LUA) identify the current and projected service units by service area. The Town LUA are summarized in Appendix A and outline the projected growth in residential population and housing units and non-residential employment and square feet. 2.The Infrastructure Improvements Plan (IIP) identifies the current and future facilities to serve the projected growth in service units identified within the LUA. 3.The Development Impact Fee Report (Fee Report) outlines the proposed development impact fee by fee category and service area incorporating the IIP eligible facilities and service units. The Fee Report will also incorporate capital funding analyses, offset calculations and cash flow projections for the proposed development impact fees. As noted above, the IIP has as its focus the existing and planned facilities to meet the needs of future development in the Town identified within the LUA. The LUA and IIP do not contain calculated or proposed fees. As such time as the LUA and IIP public input process is completed and these documents finalized, development impact fees will then be calculated and available in the Fee Report. Development Impact Fee Adoption Procedures Specific development impact fee adoption procedures are outlined in ARS § 9-463.05 (C) and ARS § 9- 463.05 (D) for public postings, public hearings and adoption of the LUA, IIP and Fee Report. If new LUA, IIP and fee schedules are not adopted by August 1, 2014, municipalities can no longer collect development impact fees until the new LUA, IIP and fee study is adopted. The requirements for public notices and adoption procedures are as follows: The LUA and IIP with supporting documents, must be released and made available to the public and posted to a website at least 60 days before a public hearing on the IIP per ARS § 9-463.05 (D). Public Hearing on the LUA/IIP can be held 60 days after the documents are released to the public and posted. The LUA and IIP must be approved or disapproved no sooner than 30 days after the public hearing, but must be within 60 days of the public hearing, and at least 30 days before the second “Fee Report”public hearing per ARS § 9-463.05 (D)(1). At least 30 days before second public hearing, the “notice of intention” to modify the development impact fees as well as the fee schedule within a written report (Fee Report) that supports the fees must be released to the public and posted per ARS § 9-463.05 (C). 1 The Town initially retained Red Oak Consulting, an ARCADIS group, to complete this study and the contract was subsequently assigned to RFC in July 2013. 5 Public hearing on the Fee Report 30 days after the document is released to the public and posted. Final action to adopt/disapprove fees must be at least 30 days after the 2 nd public hearing but within 60 days of the second public hearing per ARS § 9-463.05 (C)and ARS § 9-463.05 (D)(1). Fees effective not earlier than 75 days after formal approval and cannot be adopted as emergency measure per ARS § 9-463.05 (C). The Town may update the IIP to reflect modifications of facilitie s to serve new development and complete a similar process of updating LUA, IIP and Fee Report including public hearing and reporting requirements. The update will need to be completed at a minimum of every five years. 6 Introduction The Town of Fountain Hills (Town)retained the team of Raftelis Financial Consultants, Inc.(RFC or Raftelis)2 , to complete an update of the Town’s development impact fees for compliance with the requirements of Arizona Revised Statutes (ARS)§9-463.05. To ensure that new development contributes its proportionate share towards the cost of public facilities the Town has enacted development impact fees for a variety of fee categories. The fees were most recently updated in December 2011 with elimination of the Open Space and General Government fees and reductions to the Park and Recreation, and Library and Museum fee areas as a result of ARS §9- 463.05,enacted in April 2011. The purpose of this study is to update the Town’s development impact fee categories: Fire and Emergency Medical Services (EMS) Law Enforcement Parks and Recreation Streets Open Space Library and Museum This document, the Town’s LUA and IIP,outlines the current and projected development,current and planned facility value, capacity, service level, service units, and single-family residential Equivalent Development Unit (EDU) by development type and fee category. The IIP outlines background information regarding ARS § 9-463.05 and IIP eligible facilities for development impact fee recovery. The IIP eligible facilities and service units support the update of the Town’s development impact fees to be completed as the final phase of this update. The Town’s fiscal year (FY)begins July 1st and ends June 30th;FY 2013-14 refers to the 12-month period July 1, 2013 through June 30, 2014. Background Arizona has experienced tremendous growth in past decades. To ensure new growth pays its proportionate share of infrastructure costs, deve lopment impact fees are collected by cities and towns to evenly and fairly distribute the burden of facility capacity to serve new development. These one -time charges are assessed to new development by local governments to recover the proportional cost of facilities benefiting new development based on specific calculations using standardized assessment schedules. Each development project pays a proportionate share of the cost of new infrastructure or necessary public services (NPS) needed to support new d evelopment. ARS §9-463.05 provides a framework for cities and towns to assess, collect and administer development impact fees. In April of 2011, statutory revisions were made by the approval of Senate Bill (SB) 1525 that 2 The Town initially retained Red Oak Consulting, an ARCADIS group, to complete this study and the con tract was subsequently assigned to RFC in July 2013. 7 significantly changed the requirements for development impact fees. To understand the regulatory environment, the following section provides an overview of the most important elements of the development impact fee statutes. Qualifying Uses A municipality may assess development impact fees to help offset the capital expenses associated with providing NPS to a new development. This would include infrastructure costs, purchases of real property, fees for engineering and architectural services, financing costs, and other qualifying profe ssional services. Development impact fees are required to result in a beneficial use to the development and be calculated based on an IIP. The fees may not exceed the development’s proportionate share of the NPS and must be based on the same level of service provided to existing development in the service area. ARS §9-463.05(T)(5)defines NPS in a manner that effectively limits the facilities for which development impact fees can be collected. After January 1, 2012, development impact fees may only be assessed for the following NPS: Water Facilities; Wastewater Facilities; Storm Water, Drainage and Flood Control Facilities; Library Facilities of up to 10,000 square feet that provide a direct benefit to development, excluding appurtenances, equipment or vehicles; Street Facilities; Fire and Police Facilities, including appurtenances, equipment and vehicles with exceptions described in the next paragraph; Neighborhood Parks and Recreation facilities on property up to 30 acres (larger allowed if there is a direct benefit to the development); and Qualifying pledged debt. Within these definitions of NPS, specific exclusions are provided within ARS §9-463.05.Specifically, development impact fees may not be used to purchase library equipment and vehicles. Fire and Police replacement facilities, administrative vehicles and equipment, helicopters and airplanes, and centralized training facilities are also specifically excluded from the definition of NPS. For Neighborhood Parks and Recreation facilities,the following amenities are also excluded:vehicles, aquatic centers (although swimming pools are allowed), auditoriums, arenas, arts and cultural facilities, bandstands and orchestra facilities, bathhouses, boathouses, clubhouses, community cent ers over 3,000 square feet, environmental education centers, equestrian facilities, golf courses, greenhouses, lakes, museums, theme parks, water reclamation or riparian areas, wetlands, and zoos. Fee Calculations Under ARS §9-463.05 Under ARS §9-463.05, development impact fees are only calculated and assessed for existing or proposed improvements included in an approved IIP.The IIP is tied to the LUA (growth projections)for each service area within the boundaries of a city or town.Following the requirements of ARS § 9-463.05(T)(7) the LUA must include “…projections of changes in land uses, densities and intensities and population for 8 a specified area over a period of at least ten years and pursuant to the general plan of the municipality .” The fees apply to designated service areas, are calculated using consistent units of measurement called “service units,” and must be based on the same level of service (LOS) provided to existing development in the service area. A service area is the specific area within the boundaries of a city or town within which the development will be served by the NPS or facility expansions;for all the fee categories (considered in this study)in a relatively small community like Fountain Hills (in terms of area/square miles),the service area is defined as the entire community. A “substantial nexus”must exist between the NPS or facility expansions and the development being served.For each service area,LUA must be adopted or updated and an IIP must be prepared. The demand for facilities is quantified using a common unit of measurement, called a “service unit.” A service unit is a standardized measure of the consumption, use, generation or discharge attributable to an individual unit of development calculated using generally accepted engineering or planning standards. The service unit used in this report is the EDU. One EDU represents the average demand for services generated by a single-family home. Development impact fees may only be collected to recover the cost of current or future improvements with capacity to serve new development identified in the IIP prepared for each service area, which again, could be the entire Town. The IIP must describe projects planned within the next ten years for NPS.3 The IIP should include only new improvements that will add capacity to accommodate future growth or costs attributable to existing improvements that have excess capacity for future development. For each category of public service, the IIP shall include the elements in ARS §9-463.05(E)(1)-(7): Element #1: 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 on this state, as applicable. Element #2: 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. Element #3: 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. 3 For the water and wastewater facilities/fee, the IIP can project out 15 years.However, as the Town does not provide these services, this report does not contain an IIP for water and wastewater. 9 Element #4: 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. Element #5: 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. Element #6: The projected demand for necessary public services or facility expansions required by new service units for a period not to exceed ten years. Element #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. Offsets To recognize other revenues which may fund the same category of NPS recovered through development impact fees,ARS §9-463.05(B)(12) requires a municipality to 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 NPS covered by the development impact fee and offset these contributions in determining the extent of the burden imposed by the development for the NPS recovered by the development impact fee.An offset is required if a dedicated tax or fee based revenue source for a project funds the same NPS facilities that are recovered through development impact fees. An example may be a dedicated sales tax to repay debt service for a new NPS that is included in the IIP. Other The statute allows for fees collected before January 1, 2012,to be used for projects no longer authorized, if they are spent by January 1, 2020. Methodologies There are a variety of methods that can serve as a rational basis for computing non-utility and utility development impact fees. The most common include: System Buy-In Plan Based Incremental or Incremental Plan Based Average Hybrid Method The System Buy-in method uses a historical perspective. The original costs of the system’s fixed assets are identified and escalated to current value using a nationally recognized index. System equity equals the 10 escalated original cost less developer contributions as well as growth-related interest costs. The development impact fee is the quotient of the system value divided by the system capacity. The Plan Based Incremental or Incremental method is forward-looking and considers only future growth-related capital projects and acquisitions. The development impact fee is the quotient of the growth-related cost of proposed projects for a specified time frame plus growth-related debt interest costs divided by the increase in capacity provided by those projects. The Plan Based Average method is similar to the Plan Based Incremental method. However, the plan based average approach considers future growth-related projects that benefit new and existing development. The development impact fee is the quotient of the cost of proposed projects for a specified time frame divided by the total capacity served in the calculation year. The Hybrid method combines the system buy-in and incremental methods. The development impact fee is the quotient of the sum of the current system value and future growth-related capital costs divided by of the sum of existing system capacity and the increase in capacity provided by the future growth -related projects. The Town must create an IIP to reflect the costs required to provide NPS for new growth. In developing the costs in the IIP,the Town considered what was needed so the burden of providing services to new development did not lower the service level for existing citizens or charge new development exclusively to increase the level of service provided to existing residents.The Town may increase the level of service for current and future residents; however,the development impact fee will reflect only the p ortion of the facility benefiting new development,with funding for the increased level of service portion of the improvement benefiting existing development funded by alternative sources. In all fee categories, projects are based on facility needs to serve future development. However, many of these facilities serve growth beyond the ten years shown in the IIP, and/or benefit existing residents in terms of providing for and/or replacing existing Town facilities.Within Fire and EMS and Parks and Recreation fee categories, there are existing and future facilities that will benefit current and future development. Proposed fee calculations will recognize the proportional cost of current and future facilities benefiting new development. Funding for the porti on of facilities benefiting existing development will need to be funded from another source,which may include general fund revenues, debt and/or future dedicated tax-based funding sources documented in the Fee Report. Current Development Impact Fees Tables 1 and 2 summarize the Town’s current non-utility development impact fees.The Streets development impact fee summarized in Table 2 includes different fees assessed to single -family and multi- family residential and commercial, office, hotel and industr ial categories. 11 Table 1 Current Development Impact Fees (Except Streets) Table 2 Current Streets Development Impact Fees The Town’s Library and Museum, Streets and Law Enforcement development impact fees will be phased out by August 1, 2014,with existing fund balance being used to fund eligible capital improvements and/or pledged debt as outlined within the balance of the report. Pending future updates to the Town’s long - term capital plan and IIP, the Town may reinstate these and other devel opment impact fees that recover the proportional impact of the identified facilities from new development in compliance with the requirements of ARS § 9-463.05. Land Use Assumptions Appendix A summarizes the land use assumptions and growth projections through FY 2034-35. The residential population and dwelling units are based on Town-provided projections, including anticipated development of the former State Trust Land. Table 3 summarizes existing and projected annual residential population and single-family and multi-family housing unit growth within the Town from FY 2012-13 through FY 2022-23 and then for another 12 years through FY 2034-35. Fee Category Residential per Dwelling Unit Commercial/ Industrial per Sq. Ft. Law Enforcement $112 $0.070 Parks and Recreation 2,118 0.000 Fire and Emergency 207 0.129 Library and Museum 79 0.000 Residential per Dwelling Unit Commercial/ Industrial per Sq. Ft. Residential (Single Family)$5,614 Residential (Multi-Family)3,942 Commercial $3.835 Office 2.835 Hotel 2.258 Industrial 1.235 Development Type 12 Table 3 Projected Population and Housing Units Projected single-family and multi-family residential housing units reflect 2.16 persons per occupied housing unit consistent with the 2010 census information. Table 4 summarizes existing and projected employment for commercial (retail and office), public and industrial categories through FY 2034-354.Table 4 also summarizes existing and projected non-residential square foot (Sq. Ft.)growth for commercial / lodging and industrial land use categories from FY 2012-13 through FY 2022-23 and then for another 12 years through FY 2034-35.Projected annual commercial / lodging and industrial square foot growth is estimated based on the current ratio of developed building square feet to developed acreage5. The ratio is applied to projected commercial / lodging and industrial acreage to be developed to estimate annual building square footage growth as noted in Appendix A 6. 4 Maricopa Association of Governments (MAG) Socioeconomic Projections of Population, Housing and Employment and Municipal Planning Area and Regional Analysis Zone. Excludes “other” employment category of work -at-home and non- site based employment. 5 Town of Fountain Hills Land Use Analysis and Statistical Report, 2012. 6 Town of Fountain Hills Land Use Analysis and Statistical Report, 2012. Description FY 2012-13 FY 2022-23 Cumulative Increase Cumulative Percent FY 2012-13 FY 2034-35 Cumulative Increase Cumulative Percent Population (residents)22,908 26,693 3,784 16.5%22,908 31,142 8,234 35.9% Single-Family Residential 8,273 9,838 1,565 18.9%8,273 11,793 3,520 42.5% Multi-Family Residential 4,839 5,026 187 3.9%4,839 5,131 292 6.0% Housing Units 13,112 14,864 1,752 13.4%13,112 16,924 3,812 29.1% 13 Table 4 Projected Employment and Square Feet Description FY 2012-13 FY 2022-23 Cumulative Increase Cumulative Percent FY 2012-13 FY 2034-35 Cumulative Increase Cumulative Percent Employment (1) Retail 1,942 2,601 659 33.9%1,942 2,993 1,051 54.1% Office 816 1,437 621 76.2%816 1,618 802 98.3% Public 490 894 405 82.7%490 1,152 662 135.3% Industrial 469 614 146 31.1%469 640 171 36.5% Total 3,716 5,546 1,831 49.3%3,716 6,403 2,687 72.3% Square Feet (2) Commercial / Lodging 2,301,317 2,423,621 122,304 5.3%2,301,317 3,132,044 830,727 36.1% Industrial 312,290 317,703 5,413 1.7%312,290 323,609 11,319 3.6% Total Square Feet 2,613,607 2,741,325 127,718 4.9%2,613,607 3,455,653 842,046 32.2% (1) Maricopa Association of Governments (MAG) Socioeconomic Projections of Population, Housing and Employment and Municipal Planning Area and Regional Analysis Zone. Excludes "other" employment category of work-at-home and non-site based employment. (2) Projected non-residential square feet based on ratio of current developed square feet to developed acreage for commercial and industrial categories respectively. This ratio is applied to developable, undeveloped commercial, lodging and industrial acreage through FY 2049-50 included in the Town of Fountain Hills, Land Use Analysis and Statistics, 2012. 14 Infrastructure Improvements Plan This IIP outlines the facilities and service requirements to meet projected growth over the next ten -year period.The service area for the Town development impact fees includes the approximately 18.2 square mile incorporated area of the Town. The Town has identified improvements for development impact fee recovery for Fire and EMS and Park and Recreation fee categories. The improvements may provide capacity beyond the ten -year period with development impact fees based on the proportional cost of the f acilities per service unit.This approach fairly distributes the cost recovery among current growth within the ten-year period and growth after the ten-year period. Additional capital improvements have also been identified that are part of the Town’s capital improvement program (CIP) over the same time period which may be operational in nature or for facilities the that have not been identified for development impact fee recovery. As part of the development impact fee calculation, a cash flow and capital funding plan will be further evaluated based on the non-growth and growth-related portion of the NPS facilities identified within the IIP. Development impact fees will exclude the portion of the facility benefiting existing development. Revenues from New Development and Offset Calculations The Town has projected total tax-based and fee-based revenues through FY 2024-25 included in Appendix D. The total revenues will fund a variety of expenditures within the Town’s General Fund. Per ARS § 9-463.05, offsets reflect the contribution toward funding the same category of NPS as recovered through development impact fees from other tax and fee-based revenues generated from new development. Offsets will be outlined within the Development Impact Fee Report and proposed fee categories. An offset will be developed to reflect tax-based revenues funding the same NPS facilities that are recovered through development impact fees7. Offsets will be calculated per EDU for fee categories being updated reducing the overall development impact fee assessed. Existing Fund Balance The current development impact fee fund balance for each of the fee categories at the end of FY 2012-13 is shown in Table 5.The fund balance represents the dollar amount available to pay fo r eligible projects (including pledged debt) in each of the fee categories. 7 The Town does not assess an excess tax rate above the average tax rate and therefore an offset for the excess tax ra te is not warranted. 15 Table 5 FY 2012-13 Fund Balance by Fee Category Fire & EMS The Town provides Fire & EMS services to residential and non-residential developments throughout the Town. Current Fire and EMS Facilities Fire and EMS service is provided by two fire stations, apparatus and related equipment.The current facility fixed asset records are summarized in Appendix B. Assets that were acquired when the Town took over a Fire District and grant funded assets are excluded. Based on the current fixed asset inventory list provided by the Town, the replacement cost of these existing assets are estimated based the acquisition date and original cost escalated based on the Engineering News Record Construction Cost Index (ENR- CCI) to the date of September 2013. The net replacement cost excluding former Fire District assets and grant funded assets is approximately $1.6 million. The Town does not have outstanding debt related to current Fire and EMS facilities. Fire and EMS Service Level and Capacity The Fire & EMS service levels are based on a variety of factors. The primary service level criterion is a n average response time within five minutes 90% of the time and average of eight minutes 90% of the time for two response time zones further away from Town center8. Several factors influence response times including the location and number of calls in proximity to the Town’s two existing fire stations.Current fire stations serve the entire community responding to calls based on location of the station and nature of the call. When the primary station is responding to a call,the other station may be dispatched to respond to subsequent calls outside of its primary geographic area resulting in longer response times. Fire and EMS Facility Expansions The Town has identified an additional station that is projected to be constructed by FY 2022-23 driven by new development. The location of this fire station (the third in the Town)will be established by the Town’s adopted Fire Station Master Plan.Figure 1 identifies the current and possible fire station facilities. 8 Fire Protection and Emergency Services Agreement between the Town of Fountain Hills Arizona and Rural/Metro Corporation, Appendix A and G-1. Fund Balance - End of Fiscal Year FY 2012-13 Law Enforcement $201,896 Street 157,517 Parks and Recreation 47,859 Open Space 1,646,066 Fire and Emergency 43,624 Library and Museum 42,348 16 Figure 1 Fire & EMS Service Area Map Fire and EMS Service Units and EDUs Fire service units include both residents and employees,as people drive the demand for fire and EMS services. Current and proposed fire stations are projected to provide sufficient capacity to projected service units through FY 2034-35.Appendix B summarizes projected fire service units. Servic e units are 17 converted to housing units or residential EDUs using projected persons per occupied housing unit. Similarly, the anticipated number of employees based on average square foot for retail, office, industrial and hotel / motel varies by development type and service units are converted to the equivalent employees per 1,000 square feet for assessment purposes. Table 6 summarizes the Fire and EMS EDUs by development type based on the ratio of employees per 1,000 square feet to the residential EDU value. Table 6 Fire and EMS EDUs Fire and EMS Development Impact Fee and Capital Funding The Town may issue debt to fund a portion of the proposed Fire Station #3 reflected within proposed development impact fees. The Fire and EMS development impact fee will be based on the hybrid approach incorporating current and planned IIP eligible facili ties and total current and future service units through FY 2034-35. Parks and Recreation The Town provides Park and Recreation facilities to residential developments throughout the Town. Current Park and Recreation Facilities The mission of the Town’s Community Services Department is to enhance the quality of life by providing and maintaining safe, available, and accessible parks and recreation services located throughout the Town. Table 7 summarizes the current inventory of neighborhood and community parks. Table 7 Current Neighborhood and Community Park Inventory (Acres) Development Type Sq. ft. per Employee Employees per 1,000 Sq. ft.EDU Value EDU Factor Retail 549 1.82 2.16 0.84 Industrial 781 1.28 2.16 0.59 Office / Public 278 3.60 2.16 1.67 Hotel / Motel 917 1.09 2.16 0.50 Description Current Neighborhood Parks Acres Four Peaks 14 Desert Vista 12 Total Neighborhood Parks Acres 26 Community Parks Acres Fountain Park 33 Golden Eagle Park 25 Total Community Parks Acres 58 18 Park and Recreation facilities include parks, park improvements, and equipment.The current facility fixed asset records are summarized in Appendix C. Based on the current fixed asset inventory list provided by the Town, the replacement cost of these existing assets are estimated based the acquisition date and original cost escalated based on the ENR-CCI to the date of September 2013.Land is valued at the original cost and is not escalated based on the ENR -CCI and grant funded assets are excluded.The replacement value of the current facilities less grant funded assets is over $21.3 million and detailed in Appendix C.The Town does not have outstanding debt related to current Park and Recreation facilities. Park and Recreation Service Level and Capacity The Town’s Parks and Recreation service level is based on the number of acres per 1,000 residents for community and neighborhood parks. The current service level is below the Town’s targeted ratios for neighborhood parks and above the targeted service level for community parks . Table 8 summarizes the target and current service levels provided. Table 8 Neighborhood and Community Park Service Level The benefit of the Parks and Recreational facilities to non-residential developments was evaluated. Based on the types of facilities within the Town, a strong benefit to non -residential developments was not found and therefore service units include only residential developments. Park and Recreation Facility Expansions The Town has identified two park improvements that will expand the current system to serve existing and future development. The first improvement is associated with a planned development on the former State Trust Lands that will be funded by the developer and excluded from development impact fee recovery . The second improvement is a neighborhood park projected to be constructed by FY 2022-23 that will add 3.4 acres of new park acreage and improvements to the Town’s inventory summarized in Appendix C. Figure 2 identifies the current and proposed Park and Recreation facilities. Description Neighborhood Community Park Acres 26.0 58.0 Residents 22,954 22,954 Acres / 1,000 Residents Service Level 1.13 2.53 Target Service Level - Acres per 1,000 Residents 2.50 2.50 19 Figure 2 Park and Recreation Facilities Park and Recreation Service Units and EDUs Park and Recreation service units include residents.Current and proposed park and recreation facilities are projected to provide sufficient capacity to projected service units through FY 2034-35.Appendix A summarizes projected Park and Recreation service units. Service units are converted to housing units or residential EDUs using projected persons per occupied housing unit of 2.16. Park and Recreation Development Impact Fee and Capital Funding The Town may issue debt to fund a portion of the proposed neighborhood park ref lected within proposed development impact fees. The Parks and Recreation development impact fee will be based on 20 the hybrid approach incorporating current and planned IIP eligible facilities and total current and future service units through FY 2034-35. Trailhead Improvements / Open Space The Town assessed an Open Space development impact fee until January 1, 2012 to recover the proportional service level of existing and planned Open Space acquisitions and trailhead facilities for the Town’s park and recreation system. Open Space service levels include: 114 acres per 1,000 residents 1,169 fee of trails per 1,000 residents The Town has identified one future IIP eligible capital facility and currently does not have outstanding pledged debt obligations funded through development impact fees. The planned improvement may be funded within available funds from previously assessed development impact fees and therefore an Open Space development impact fee will not be proposed as part of this study. The trailhead improvement and fund balance will be adjusted as a Park and Recreation development impact fee restricted sub fund with existing fund balance accumulated from previously assessed Open Space development impact fees restricted to be used to fund the Adero Canyon Trailhead improvements that were included in the 2009 IIP and part of the Open Space development impact fees adopted by Town. The project is anticipated to be completed by FY 2019-20 as summarized in Appendix C. Law Enforcement Police or Law Enforcement services are also provided to non-residential developments with the same personnel. Additional support personnel are needed to support sworn officers.Police service levels are based on a variety of factors. The primary service level criterion is based on response time for priority one calls answered within one minute and a deputy dispatched on site within five minutes 9.The Town does not currently own a separate police building as services are contracted to Maricopa County Sheriff’s office with office space provided with the Town Hall .As the Town has not identified future IIP eligible capital facilities and currently does not have outstanding debt obligations, the Law Enforcement development impact fee will be eliminated no later than August 1, 2014. Th e existing fund balance accumulated from previously assessed law enforcement development impact fees will be used to fund the Law Enforcement space to be included in the planned Fire Station #2 relocation in FY 2014-15. Library and Museum The Town provides Library and Museum NPS to residential and non-residential developments through a single facility constructed in 2000.This facility was funded initially with bonds that have subsequently been refinanced. Library and Museum service levels include: 0.74 library square feet per resident 9 Agreement for Law Enforcement Services between the Town of Fountain Hills and Maricopa Cou nty Sheriff’s Office, Section II A. 21 0.28 museum square feet per resident As the Town has not identified future IIP eligible capital facilities,the Library and Museum development impact fee will be eliminated no later than August 1, 2014.The existing fund balance accumulated from previously assessed library and museum development impact fees will be used to fund a portion of the General Obligation 2005 Series debt service payments for the library and museum building. Streets The Town provides street NPS and currently assesses Street development impact fees to residential and non-residential developments summarized in Table 2.The fees were most recently updated in 2009 and recover the cost of constructing arterial streets and associated facilities necessary to serve new growth. The Town has several current and future Street capital improvements, including those that e xpand capacity serving current and future customers. Street service levels are based on the vehicle mile capacity of collector and arterial streets summarized in the Table 9. Table 9 Street Service Level Standard Street service levels are typically defined based on the capacity of each lane mile for different service level grades and traffic conditions. For example, if a street were constructed to service level “A” the lane capacity mile would exceed a similar street constructed at service level “D” or a reduced service level. As the Town has not identified future IIP eligible capital facilities and currently does not have outstanding debt obligations funded through development impact fees, the Streets developmen t impact fee will be eliminated no later than August 1, 2014. The Town may identify IIP eligible Street facilities pending future updates to the Town’s long-term capital, transportation master plan and IIP in compliance with the requirements of ARS §9-463.05. The existing fund balance accumulated from previously assessed Street development impact fees will be used to fund a portion project S6005 that has started and projected to be completed in FY 2013-14. This project includes widening of Shea and Saguro Boulevards and was previously included as growth-related project within the 2009 IIP. Street Type Service Level Units 2 lane roadway 10,000 vehicle capacity per lane mile 2 lane roadway w/ turn pockets 15,000 vehicle capacity per lane mile 4 lane roadway w/ turn pockets 30,000 vehicle capacity per lane mile APPENDIX A Land Use Assumptions TOWN OF FOUNTAIN HILLS NON-UTILITY DEVELOPMENT FEE STUDY GENERAL INPUT SCHEDULE 2a.Building Data [1] FY 2012-13 FY 2013-14 FY 2014-15 FY 2015-16 FY 2016-17 FY 2017-18 FY 2018-19 FY 2019-20 Single-Family Dwellings Units 8,273 8,293 8,318 8,343 8,373 8,403 8,438 8,938 Single-Family Dwellings, Permits 10 20 25 25 30 30 35 500 Multi-Family Dwellings (2.5 units each permit)4,839 4,840 4,841 4,866 4,891 4,911 4,931 4,956 Multi-Family Dwellings, Permits 2 0 0 10 10 8 8 10 Multi-Family Dwellings, New Units 4 1 1 25 25 20 20 25 Total Dwelling Units 13,112 13,133 13,159 13,209 13,264 13,314 13,369 13,894 Percentage Increase 0.11%0.16%0.20%0.38%0.42%0.38%0.41%3.93% State Trust Land (included in SF Dwelling Units)0 0 0 0 0 0 150 2b.Square Feet Avg.s.f./unit:1,930 Single Family, New Square Feet 19,300 38,600 48,250 48,250 57,900 57,900 67,550 965,000 Cumulative S.F. [2]15,966,890 16,005,490 16,053,740 16,101,990 16,159,890 16,217,790 16,285,340 17,250,340 Avg.s.f./unit:1,002 Multi-Family, New Square Feet 4,008 1,002 1,002 25,050 25,050 20,040 20,040 25,050 Cumulative S.F. [2]4,848,678 4,849,680 4,850,682 4,875,732 4,900,782 4,920,822 4,940,862 4,965,912 Industrial Square Feet 312,782 313,274 313,766 314,259 314,751 315,243 315,735 316,227 New Square Feet [3]492 492 492 492 492 492 492 492 Commercial / Lodging Square Feet 2,312,436 2,323,554 2,334,673 2,345,791 2,356,910 2,368,028 2,379,147 2,390,266 New Square Feet [4]11,119 11,119 11,119 11,119 11,119 11,119 11,119 11,119 Subtotal 2,625,218 2,636,828 2,648,439 2,660,050 2,671,661 2,683,271 2,694,882 2,706,493 Total New Square Feet 11,611 11,611 11,611 11,611 11,611 11,611 11,611 11,611 0.4%0.4%0.4%0.4%0.4%0.4%0.4%0.4% Total Residential SF 20,815,568 20,855,170 20,904,422 20,977,722 21,060,672 21,138,612 21,226,202 22,216,252 Total Residential and Commercial SF 23,440,786 23,491,998 23,552,861 23,637,772 23,732,333 23,821,883 23,921,084 24,922,745 Residential Percentage 88.8%88.8%88.8%88.7%88.7%88.7%88.7%89.1% Commercial Percentage 11.2%11.2%11.2%11.3%11.3%11.3%11.3%10.9% [1] Projected dwelling units timing provided by Town. [2] Based on average of national median sq. ft. figures from 1989 to 1998 to develop assumed single family sq.ft. of 1,930 and multi-family units average of 1,002. [4] Projected average annual square footage growth through FY 2049-50 build-out based on 129.7 commercial / lodging acres to be developed and ratio of 7,605 developed square feet per acre. Average annual growth is adjusted for 75,000 square feet developed in FY 2023-24 and 500,000 square feet developed in FY 2033-34. [3] Projected average annual square footage growth through FY 2049-50 based on 2 acres to be developed and 9,105 square feet per acre. 12/5/2013A - 1 TOWN OF FOUNTAIN HILLS NON-UTILITY DEVELOPMENT FEE STUDY GENERAL INPUT SCHEDULE 2a.Building Data [1] Single-Family Dwellings Units Single-Family Dwellings, Permits Multi-Family Dwellings (2.5 units each permit) Multi-Family Dwellings, Permits Multi-Family Dwellings, New Units Total Dwelling Units Percentage Increase State Trust Land (included in SF Dwelling Units) 2b.Square Feet Avg.s.f./unit:1,930 Single Family, New Square Feet Cumulative S.F. [2] Avg.s.f./unit:1,002 Multi-Family, New Square Feet Cumulative S.F. [2] Industrial Square Feet New Square Feet [3] Commercial / Lodging Square Feet New Square Feet [4] Subtotal Total New Square Feet Total Residential SF Total Residential and Commercial SF Residential Percentage Commercial Percentage [1] Projected dwelling units timing provided by Town. [2] Based on average of national median sq. ft. figures from 1989 to 1998 to develop assumed single family sq.ft. of 1,930 and multi-family units average of 1,002. [4] Projected average annual square footage growth through FY 2049-50 build-out based on 129.7 commercial / lodging acres to be developed and ratio of 7,605 developed square feet per acre. Average annual growth is adjusted for 75,000 square feet developed in FY 2023-24 and 500,000 square feet developed in FY 2033-34. [3] Projected average annual square footage growth through FY 2049-50 based on 2 acres to be developed and 9,105 square feet per acre. FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 9,188 9,488 9,838 10,113 10,438 10,713 10,968 11,168 250 300 350 275 325 275 255 200 4,981 5,006 5,026 5,046 5,076 5,091 5,101 5,111 10 10 8 8 12 6 4 4 25 25 20 20 30 15 10 10 14,169 14,494 14,864 15,159 15,514 15,804 16,069 16,279 1.98%2.29%2.55%1.98%2.34%1.87%1.68%1.31% 150 200 200 175 175 100 80 50 482,500 579,000 675,500 530,750 627,250 530,750 492,150 386,000 17,732,840 18,311,840 18,987,340 19,518,090 20,145,340 20,676,090 21,168,240 21,554,240 25,050 25,050 20,040 20,040 30,060 15,030 10,020 10,020 4,990,962 5,016,012 5,036,052 5,056,092 5,086,152 5,101,182 5,111,202 5,121,222 316,719 317,211 317,703 318,196 318,688 319,180 319,672 320,164 492 492 492 492 492 492 492 492 2,401,384 2,412,503 2,423,621 2,509,740 2,520,858 2,531,977 2,543,096 2,554,214 11,119 11,119 11,119 86,119 11,119 11,119 11,119 11,119 2,718,103 2,729,714 2,741,325 2,827,935 2,839,546 2,851,157 2,862,768 2,874,378 11,611 11,611 11,611 86,611 11,611 11,611 11,611 11,611 0.4%0.4%0.4%3.2%0.4%0.4%0.4%0.4% 22,723,802 23,327,852 24,023,392 24,574,182 25,231,492 25,777,272 26,279,442 26,675,462 25,441,905 26,057,566 26,764,717 27,402,117 28,071,038 28,628,429 29,142,210 29,549,840 89.3%89.5%89.8%89.7%89.9%90.0%90.2%90.3% 10.7%10.5%10.2%10.3%10.1%10.0%9.8%9.7% 12/5/2013A - 2 TOWN OF FOUNTAIN HILLS NON-UTILITY DEVELOPMENT FEE STUDY GENERAL INPUT SCHEDULE 2a.Building Data [1] Single-Family Dwellings Units Single-Family Dwellings, Permits Multi-Family Dwellings (2.5 units each permit) Multi-Family Dwellings, Permits Multi-Family Dwellings, New Units Total Dwelling Units Percentage Increase State Trust Land (included in SF Dwelling Units) 2b.Square Feet Avg.s.f./unit:1,930 Single Family, New Square Feet Cumulative S.F. [2] Avg.s.f./unit:1,002 Multi-Family, New Square Feet Cumulative S.F. [2] Industrial Square Feet New Square Feet [3] Commercial / Lodging Square Feet New Square Feet [4] Subtotal Total New Square Feet Total Residential SF Total Residential and Commercial SF Residential Percentage Commercial Percentage [1] Projected dwelling units timing provided by Town. [2] Based on average of national median sq. ft. figures from 1989 to 1998 to develop assumed single family sq.ft. of 1,930 and multi-family units average of 1,002. [4] Projected average annual square footage growth through FY 2049-50 build-out based on 129.7 commercial / lodging acres to be developed and ratio of 7,605 developed square feet per acre. Average annual growth is adjusted for 75,000 square feet developed in FY 2023-24 and 500,000 square feet developed in FY 2033-34. [3] Projected average annual square footage growth through FY 2049-50 based on 2 acres to be developed and 9,105 square feet per acre. FY 2028-29 FY 2029-30 FY 2030-31 FY 2031-32 FY 2032-33 FY 2033-34 FY 2034-35 11,418 11,793 11,793 11,793 11,793 11,793 11,793 250 375 0 0 0 0 0 5,121 5,131 5,131 5,131 5,131 5,131 5,131 4 4 0 0 0 0 0 10 10 0 0 0 0 0 16,539 16,924 16,924 16,924 16,924 16,924 16,924 1.60%2.33%0.00%0.00%0.00%0.00%0.00% 25 25 0 0 0 0 482,500 723,750 0 0 0 0 0 22,036,740 22,760,490 22,760,490 22,760,490 22,760,490 22,760,490 22,760,490 10,020 10,020 0 0 0 0 0 5,131,242 5,141,262 5,141,262 5,141,262 5,141,262 5,141,262 5,141,262 320,656 321,148 321,641 322,133 322,625 323,117 323,609 492 492 492 492 492 492 492 2,565,333 2,576,451 2,587,570 2,598,688 2,609,807 3,120,925 3,132,044 11,119 11,119 11,119 11,119 11,119 511,119 11,119 2,885,989 2,897,600 2,909,210 2,920,821 2,932,432 3,444,042 3,455,653 11,611 11,611 11,611 11,611 11,611 511,611 11,611 0.4%0.4%0.4%0.4%0.4%17.4%0.3% 27,167,982 27,901,752 27,901,752 27,901,752 27,901,752 27,901,752 27,901,752 30,053,971 30,799,352 30,810,962 30,822,573 30,834,184 31,345,794 31,357,405 90.4%90.6%90.6%90.5%90.5%89.0%89.0% 9.6%9.4%9.4%9.5%9.5%11.0%11.0% 12/5/2013A - 3 TOWN OF FOUNTAIN HILLS NON-UTILITY DEVELOPMENT FEE STUDY GENERAL INPUT SCHEDULE Description FY 2012-13 FY 2013-14 FY 2014-15 FY 2015-16 FY 2016-17 FY 2017-18 FY 2018-19 FY 2019-20 3.Population Data [1]22,908 22,954 23,010 23,118 23,237 23,345 23,463 24,597 Percent Change From Prior Year 0.13%0.20%0.24%0.47%0.51%0.46%0.51%4.83% Employment [2] Retail Start of Year 1,942 2,013 2,084 2,155 2,225 2,296 2,367 2,438 Increase 71 71 71 71 71 71 71 71 End of Fiscal Year 2,013 2,084 2,155 2,225 2,296 2,367 2,438 2,509 Office Start of Year 816 889 962 1,036 1,109 1,182 1,255 1,329 Increase 73 73 73 73 73 73 73 73 End of Fiscal Year 889 962 1,036 1,109 1,182 1,255 1,329 1,402 Industrial Start of Year 485 500 516 532 548 564 579 595 Increase 16 16 16 16 16 16 16 16 End of Fiscal Year 500 516 532 548 564 579 595 611 Public Start of Year 490 531 572 614 655 696 737 779 Increase 41 41 41 41 41 41 41 41 End of Fiscal Year 531 572 614 655 696 737 779 820 Total Start of Year 3,732 3,933 4,134 4,336 4,537 4,738 4,939 5,141 Increase 201 201 201 201 201 201 201 201 End of Fiscal Year 3,933 4,134 4,336 4,537 4,738 4,939 5,141 5,342 Annual Growth Rate 5.4%5.1%4.9%4.6%4.4%4.2%4.1%3.9% [1] Town of Fountain Hills Land Use Report, 2012. [2] Maricopa Association of Governments (MAG) Socioeconomic Projections of Population, Housing and Employment and Municipal Planning Area and Regional Analysis Zone. Excludes "other" employment category of work-at-home and non-site based employment. Annual projections based on ten-year increment employee projections. 12/5/2013A - 4 TOWN OF FOUNTAIN HILLS NON-UTILITY DEVELOPMENT FEE STUDY GENERAL INPUT SCHEDULE Description 3.Population Data [1] Percent Change From Prior Year Employment [2] Retail Start of Year Increase End of Fiscal Year Office Start of Year Increase End of Fiscal Year Industrial Start of Year Increase End of Fiscal Year Public Start of Year Increase End of Fiscal Year Total Start of Year Increase End of Fiscal Year Annual Growth Rate [1] Town of Fountain Hills Land Use Report, 2012. [2] Maricopa Association of Governments (MAG) Socioeconomic Projections of Population, Housing and Employment and Municipal Planning Area and Regional Analysis Zone. Excludes "other" employment category of work-at-home and non-site based employment. Annual projections based on ten-year increment employee projections. FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 25,191 25,893 26,693 27,330 28,097 28,723 29,295 29,749 2.41%2.79%3.09%2.39%2.81%2.23%1.99%1.55% 2,509 2,540 2,570 2,601 2,631 2,662 2,693 2,723 31 31 31 31 31 31 31 31 2,540 2,570 2,601 2,631 2,662 2,693 2,723 2,754 1,402 1,414 1,425 1,437 1,448 1,460 1,472 1,483 12 12 12 12 12 12 12 12 1,414 1,425 1,437 1,448 1,460 1,472 1,483 1,495 611 613 614 616 618 620 621 623 2 2 2 2 2 2 2 2 613 614 616 618 620 621 623 625 820 845 870 894 919 944 969 994 25 25 25 25 25 25 25 25 845 870 894 919 944 969 994 1,018 5,342 5,411 5,479 5,548 5,617 5,686 5,754 5,823 69 69 69 69 69 69 69 69 5,411 5,479 5,548 5,617 5,686 5,754 5,823 5,892 1.3%1.3%1.3%1.2%1.2%1.2%1.2%1.2% 12/5/2013A - 5 TOWN OF FOUNTAIN HILLS NON-UTILITY DEVELOPMENT FEE STUDY GENERAL INPUT SCHEDULE Description 3.Population Data [1] Percent Change From Prior Year Employment [2] Retail Start of Year Increase End of Fiscal Year Office Start of Year Increase End of Fiscal Year Industrial Start of Year Increase End of Fiscal Year Public Start of Year Increase End of Fiscal Year Total Start of Year Increase End of Fiscal Year Annual Growth Rate [1] Town of Fountain Hills Land Use Report, 2012. [2] Maricopa Association of Governments (MAG) Socioeconomic Projections of Population, Housing and Employment and Municipal Planning Area and Regional Analysis Zone. Excludes "other" employment category of work-at-home and non-site based employment. Annual projections based on ten-year increment employee projections. FY 2028-29 FY 2029-30 FY 2030-31 FY 2031-32 FY 2032-33 FY 2033-34 FY 2034-35 30,311 31,142 31,142 31,142 31,142 31,142 31,142 1.89%2.74%0.00%0.00%0.00%0.00%0.00% 2,754 2,784 2,815 2,851 2,886 2,922 2,957 31 31 36 36 36 36 36 2,784 2,815 2,851 2,886 2,922 2,957 2,993 1,495 1,506 1,518 1,538 1,558 1,578 1,598 12 12 20 20 20 20 20 1,506 1,518 1,538 1,558 1,578 1,598 1,618 625 626 628 631 634 637 640 2 2 3 3 3 3 3 626 628 631 634 637 640 643 1,018 1,043 1,068 1,085 1,102 1,118 1,135 25 25 17 17 17 17 17 1,043 1,068 1,085 1,102 1,118 1,135 1,152 5,892 5,960 6,029 6,104 6,180 6,255 6,330 69 69 75 75 75 75 75 5,960 6,029 6,104 6,180 6,255 6,330 6,406 1.2%1.2%1.2%1.2%1.2%1.2%1.2% 12/5/2013A - 6 APPENDIX B Fire & EMS Fee Category TOWN OF FOUNTAIN HILLS NON-UTILITY DEVELOPMENT FEE STUDY ASSETS JUNE 30, 2012 Asset ID Description Status Group Cat.Total Equity [1]Cost Depreciation Year Replacement Cost New [1] Allocated Replacement Value FIRE & EMERGENCY SERVICES: B1015 FIRE STATIONS #1 AND #2 Donated FES BLDG 100.00%$890,515 $118,036 2001 $1,342,943 $1,342,943 B1017 Shea Fire Station FES BLDG 100.00%$28,200 1,692 2009 31,431 31,431 B1017 Fire Station 2 Relocation FES BLDG 100.00%$114,999 4,600 2010 124,798 124,798 I1032 FUEL STORAGE TANK STATION 1 FES IMPR 100.00%57,930 18,839 2001 87,361 87,361 V1053 FORD EXPEDITION (FIRE DEPT)Donated FES EQUIP 100.00%35,000 35,000 2001 52,782 52,782 V1054 MISC. EQUIPMENT TO BE IDENTIFIED Donated FES EQUIP 100.00%828,310 828,310 2001 1,249,134 1,249,134 V1054A 2001 Ford F550 4 X 4 Admin FES EQUIP 0.00%40,000 $40,000 2001 60,322 0 V1074 Ford F150 Admin FES EQUIP 0.00%43,004 $25,802 2009 47,932 0 V1077 Ford F150 - Fire Chief Admin FES EQUIP 0.00%28,829 0 2011 30,361 0 V1078 2012 Ford F550 - Project V0822 Admin FES EQUIP 0.00%95,912 0 2012 98,426 0 I1049 FIRE STATION KITCHEN IMPROVEMENTS FES BLDG 100.00%4,724 670 2005 6,060 6,060 I1057 FIRE STATION #1 IMPROVEMENTS FES BLDG 100.00%68,218 3,420 2007 81,800 81,800 M1017 American LaFrance Ladder Truck FES EQUIP 100.00%444,527 423,579 2001 670,370 670,370 M1021 SPARTAN FIRE PUMPER TRUCK FES EQUIP 100.00%369,225 2,934 2008 424,409 424,409 M1023 Fire Safety Generator #1 - GENPAC 80KW FES EQUIP 100.00%52,626 0 2011 55,422 55,422 M1024 Fire Safety Generator #2 - GENPAC 40KW FES EQUIP 100.00%41,052 0 2011 43,233 43,233 O1040 PORTABLE ASTROS RADIOS Grant FES EQUIP 100.00%52,015 2,565 2008 59,789 59,789 O1041 Heartsmart Monitors (3)FES EQUIP 100.00%51,959 32,001 2008 59,725 59,725 Total Fire & Emergency Services $3,247,044 $4,526,298 $4,289,257 [1] Based Upon ENR-CCI: September 2013 12/5/2013B - 1 TOWN OF FOUNTAIN HILLS NON-UTILITY DEVELOPMENT FEE STUDY Capital Improvements Program PROJECT/PROGRAM DESCRIPTION Growth Non- Growth FY 2012-13 FY 2013-14 FY 2014-15 FY 2015-16 FY 2016-17 FY 2017-18 FY 2018-19 FY 2019-20 FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 Fire & Emergency Services - 2013 Dollars F4013 Fire Station 3 Construction 100.0%0.0%$0 $0 $0 $0 $0 $0 $0 $0 $0 271,000 2,496,000 $0 F4015 Fire Station 1 Renovation 0.0%100.0%75,000 420,000 0 0 0 0 0 0 0 0 0 0 F4025 Portable Live Fire Training Unit 0.0%100.0%0 160,000 0 0 0 0 0 0 0 0 0 0 F4027 Assistance to Fire Fighters Grants - Radios 0.0%100.0%0 120,000 0 0 0 0 0 0 0 0 0 0 F4005 Fire Station 2 Relocation 0.0%100.0%0 2,110,000 Total Fire & Emergency Services 75,000 700,000 2,110,000 0 0 0 0 0 0 271,000 2,496,000 0 Fire & Emergency Services Growth Related CIP 0 0 0 0 0 0 0 0 0 271,000 2,496,000 0 Fire & Emergency Services Non-Growth Related CIP 75,000 700,000 2,110,000 0 0 0 0 0 0 0 0 0 12/5/2013B - 2 TOWN OF FOUNTAIN HILLS NON-UTILITY DEVELOPMENT FEE STUDY Capital Improvements Program PROJECT/PROGRAM DESCRIPTION Growth Non- Growth Fire & Emergency Services - 2013 Dollars F4013 Fire Station 3 Construction 100.0%0.0% F4015 Fire Station 1 Renovation 0.0%100.0% F4025 Portable Live Fire Training Unit 0.0%100.0% F4027 Assistance to Fire Fighters Grants - Radios 0.0%100.0% F4005 Fire Station 2 Relocation 0.0%100.0% Total Fire & Emergency Services Fire & Emergency Services Growth Related CIP Fire & Emergency Services Non-Growth Related CIP ALL YEARS FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 FY 2030-31 FY 2031-32 Growth Non-Growth FY 2013-32 $0 $0 $0 $0 $0 $0 $0 $0 $2,767,000 $0 $2,767,000 0 0 0 0 0 0 0 0 $0 $495,000 $495,000 0 0 0 0 0 0 0 0 $0 $160,000 $160,000 0 0 0 0 0 0 0 0 $0 $120,000 $120,000 $0 $2,110,000 $2,110,000 0 0 0 0 0 0 0 0 2,767,000 2,885,000 5,652,000 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 12/5/2013B - 3 APPENDIX C Parks and Recreation Fee Category TOWN OF FOUNTAIN HILLS NON-UTILITY DEVELOPMENT FEE STUDY ASSETS JUNE 30, 2012 Asset ID Description Status Group Cat.Total Equity [1]Cost Depreciation Year Replacement Cost New [1] Allocated Replacement Value PARKS: B1006 GOLDEN EAGLE PARK CONTROL BUILDING PR BLDG 100.00%$381,743 $91,765 1996 $648,827 $648,827 I1004 GOLDEN EAGLE PARK IMPROVEMENTS Grant PR IMPR 100.00%468,500 351,888 1993 858,947 858,947 I1005 GOLDEN EAGLE PARK IMPROVEMENTS Grant PR IMPR 100.00%528,484 370,518 1994 933,447 933,447 I1006 GOLDEN EAGLE PARK IMPROVEMENTS PR IMPR 100.00%555,080 333,580 1996 943,438 943,438 I1007 GOLDEN EAGLE PARK IMPROVEMENTS PR IMPR 100.00%563,915 338,890 1996 958,455 958,455 I1008 GOLDEN EAGLE PARK IMPROVEMENTS PR IMPR 100.00%825,947 412,970 1998 1,332,677 1,332,677 I1027 GEP IMPROVEMENTS - STEPS PR IMPR 100.00%19,784 5,951 2002 28,904 28,904 I1015 GEP COMP. CONSTRUCTION PR IMPR 100.00%773,816 348,219 1999 1,219,919 1,219,919 B1009 FPNP CONTROL BUILDING PR BLDG 100.00%136,640 24,648 1999 215,413 215,413 I1016 FOUR PEAKS PARK CONSTRUCTION PR IMPR 100.00%581,788 261,801 1999 917,187 917,187 I1021 FOUR PEAKS IMPROVEMENTS PR IMPR 100.00%15,820 3,175 2000 24,291 24,291 I1028 FPNP PLAYGROUND PR IMPR 100.00%55,000 16,545 2002 80,355 80,355 L1011 FOUR PEAKS PARK PR LAND 100.00%540,000 0 540,000 540,000 I1018 DVNP IMPROVEMENTS PR IMPR 100.00%171,489 77,166 1999 270,352 270,352 I1019 DVNP IMPROVEMENTS PR IMPR 100.00%58,980 23,592 2000 90,561 90,561 I1030 SHADE STRUCTURES - DVNP PR IMPR 100.00%19,434 6,573 2001 29,307 29,307 L1012 DESERT VISTA NEIGHBORHOOD PARK PR LAND 100.00%1,265,000 0 1,265,000 1,265,000 I1025 FOUNTAIN PARK IMPROVEMENTS PR IMPR 100.00%1,939,388 680,380 2001 2,924,698 2,924,698 I1035 FOUNTAIN PARK LWCF Grant PR IMPR 100.00%23,731 7,753 2001 35,788 35,788 I1037 FOUNTAIN PARK PHASE II Grant PR IMPR 100.00%62,619 14,085 2004 84,067 84,067 L1006 FOUNTAIN PARK PR LAND 100.00%3,582,772 0 3,582,772 3,582,772 I1037 LINCH MODULAR P&R REMODEL PR IMPR 100.00%17,857 1,118 2003 25,477 25,477 I1038 VETERANS MEMORIAL CANNON PAD PR IMPR 100.00%14,000 3,504 2003 19,974 19,974 M1014 PUMP CONTROL SYSTEM PR EQUIP 100.00%12,524 12,524 1997 20,534 20,534 V1033 1999 DODGE PICKUP PR EQUIP 100.00%24,062 24,062 1999 37,934 37,934 V1035 1999 DODGE PICKUP PR EQUIP 100.00%14,706 14,706 1999 23,184 23,184 V1040 2000 CHEVY EXPRESS VAN PR EQUIP 100.00%21,158 21,158 1999 33,356 33,356 I1039 SPLASH PARK IMPROVEMENTS PR IMPR 100.00%23,636 2,367 2006 29,128 29,128 I1040 SHADE STRUCTURES - DVNP PR EQUIP 100.00%165,705 16,570 2006 204,208 204,208 I1042 FTN PARK PHASE II IMPROVEMENTS Grant PR IMPR 100.00%811,453 162,292 2004 1,089,388 1,089,388 I1047 DVNP IMPROVEMENTS PR IMPR 100.00%272,140 39,814 2005 349,111 349,111 I1050 GEP PR IMPR 100.00%28,025 2,806 2006 34,537 34,537 I1051 SKATE PARK DVNP PR IMPR 100.00%347,211 17,361 2007 416,339 416,339 I1059 SPLASH PARK IMPROVEMENTS PR IMPR 100.00%19,895 997 2007 23,856 23,856 I1060 FOUNTAIN PARK IMPROVEMENTS PR IMPR 100.00%69,404 3,480 2007 83,222 83,222 I1061 GEP ADA IMPROVEMENTS PR IMPR 100.00%7,870 395 2007 9,437 9,437 I1062 DOG PARK PROJECTS P3006 PR IMPR 100.00%155,461 3,855 2008 178,696 178,696 I1063 FOUNTAIN PARK IMPROVEMENTS PR IMPR 100.00%1,358,653 67,933 2008 1,561,715 1,561,715 I1064 DVNP IMPROVEMENTS PR IMPR 100.00%1,416,421 5,902 2008 1,628,117 1,628,117 I1064 DVNP (Desert Vista Neighborhood Park) Improvements PR IMPR 100.00%1,162,164 174,325 2009 1,295,331 1,295,331 I1065 SHADE STRUCTURES - FPNP PR EQUIP 100.00%15,580 386 2008 17,909 17,909 I1067 JOINT USE PARK PR IMPR 100.00%21,046 173 2008 24,192 24,192 I1068 Botanical Garden Parking Impr PR IMPR 100.00%31,345 4,702 2009 34,937 34,937 M1020 KU TRACTOR PR EQUIP 100.00%27,199 2,720 2007 32,614 32,614 M1022 4X4 KAWASAKI MULE PR EQUIP 100.00%7,190 597 2007 8,622 8,622 O1039 SURVEILLANCE CAMERAS PR EQUIP 100.00%30,436 3,019 2008 34,985 34,985 V1059 BOAT PR EQUIP 100.00%1 1 1 1 V1065 2007 FORD D150 REG CAB 4X2 PR EQUIP 100.00%15,174 5,055 2006 18,700 18,700 V1066 JOHN DEERE GATOR PR EQUIP 100.00%6,590 2,416 2006 8,121 8,121 V1067 JOHN DEERE GATOR PR EQUIP 100.00%6,590 2,416 2006 8,121 8,121 V1068 2007 FORD F250 S-DTY PR EQUIP 100.00%19,089 6,360 2006 23,524 23,524 V1071 2007 FORD F150 P/U PR EQUIP 100.00%18,288 3,347 2007 21,929 21,929 V1072 2007 FORD F150 P/U PR EQUIP 100.00%18,288 3,347 2007 21,929 21,929 Total Parks $18,729,091 $24,303,533 $24,303,533 [1] Based Upon ENR-CCI: September 2013 12/5/2013 C - 1 TOWN OF FOUNTAIN HILLS NON-UTILITY DEVELOPMENT FEE STUDY Capital Improvements Program PROJECT/PROGRAM DESCRIPTION Growth Non- Growth FY 2012-13 FY 2013-14 FY 2014-15 FY 2015-16 FY 2016-17 FY 2017-18 FY 2018-19 FY 2019-20 FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 Parks & Recreation - 2013 Dollars P3008 Four Peaks Neighborhood Park Phase II & III 0.0%100.0%$50,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 P3011 Fountain Park, Phase VI 0.0%100.0%0 825,000 675,000 0 0 0 0 0 0 0 0 0 P3014 Community Park - Ellman Property 100.0%0.0%0 0 0 0 0 0 9,200,000 18,400,000 0 0 0 0 P3022 Fountain Lake Water Quality Improvements 0.0%100.0%0 300,000 0 0 0 0 0 0 0 0 0 0 P3023 New Pocket Park-West 100.0%0.0%0 0 0 0 0 0 0 0 0 0 713,000 0 P3024 Urban Trail Improvements 0.0%100.0%50,000 20,000 20,000 20,000 20,000 0 0 0 0 0 0 0 Total Parks & Recreation 100,000 1,145,000 695,000 20,000 20,000 0 9,200,000 18,400,000 0 0 713,000 0 Parks & Recreation Growth Related CIP 0 0 0 0 0 0 0 0 0 0 713,000 0 Parks & Recreation Non-Growth Related CIP 100,000 1,145,000 695,000 20,000 20,000 0 0 0 0 0 0 0 Parks & Recreation Improvements Developer Funded CIP 0 0 0 0 0 0 9,200,000 18,400,000 0 0 0 0 12/5/2013 C - 2 TOWN OF FOUNTAIN HILLS NON-UTILITY DEVELOPMENT FEE STUDY Capital Improvements Program PROJECT/PROGRAM DESCRIPTION Growth Non- Growth Parks & Recreation - 2013 Dollars P3008 Four Peaks Neighborhood Park Phase II & III 0.0%100.0% P3011 Fountain Park, Phase VI 0.0%100.0% P3014 Community Park - Ellman Property 100.0%0.0% P3022 Fountain Lake Water Quality Improvements 0.0%100.0% P3023 New Pocket Park-West 100.0%0.0% P3024 Urban Trail Improvements 0.0%100.0% Total Parks & Recreation Parks & Recreation Growth Related CIP Parks & Recreation Non-Growth Related CIP Parks & Recreation Improvements Developer Funded CIP ALL YEARS FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 FY 2030-31 FY 2031-32 Growth Non-Growth FY 2013-32 $0 $0 $0 $0 $0 $0 $0 $0 $0 $50,000 $50,000 0 0 0 0 0 0 0 0 0 1,500,000 1,500,000 0 0 0 0 0 0 0 0 27,600,000 0 27,600,000 0 0 0 0 0 0 0 0 0 300,000 300,000 0 0 0 0 0 0 0 0 713,000 0 713,000 0 0 0 0 0 0 0 0 0 130,000 130,000 0 0 0 0 0 0 0 0 28,313,000 1,980,000 30,293,000 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 12/5/2013 C - 3 TOWN OF FOUNTAIN HILLS NON-UTILITY DEVELOPMENT FEE STUDY Capital Improvements Program PROJECT/PROGRAM DESCRIPTION Growth Non- Growth FY 2012-13 FY 2013-14 FY 2014-15 FY 2015-16 FY 2016-17 FY 2017-18 FY 2018-19 FY 2019-20 FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 Open Space - 2013 Dollars O7002 Adero Canyon Trailhead 100.0%0.0%$0 $0 $0 $0 $0 $0 $0 1,930,000 $0 $0 $0 $0 Total Open Space 0 0 0 0 0 0 0 1,930,000 0 0 0 0 Open Space Growth Related CIP 0 0 0 0 0 0 0 1,930,000 0 0 0 0 Open Space Non-Growth Related CIP 0 0 0 0 0 0 0 0 0 0 0 0 12/5/2013 C - 4 TOWN OF FOUNTAIN HILLS NON-UTILITY DEVELOPMENT FEE STUDY Capital Improvements Program PROJECT/PROGRAM DESCRIPTION Growth Non- Growth Open Space - 2013 Dollars O7002 Adero Canyon Trailhead 100.0%0.0% Total Open Space Open Space Growth Related CIP Open Space Non-Growth Related CIP ALL YEARS FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 FY 2030-31 FY 2031-32 Growth Non-Growth FY 2013-32 $0 $0 $0 $0 $0 $0 $0 $0 $1,930,000 $0 $1,930,000 0 0 0 0 0 0 0 0 1,930,000 0 1,930,000 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 12/5/2013 C - 5 APPENDIX D Streets CIP, Existing Debt ,Revenue Forecast and Supporting Information TOWN OF FOUNTAIN HILLS NON-UTILITY DEVELOPMENT FEE STUDY Capital Improvements Program PROJECT/PROGRAM DESCRIPTION Growth Non- Growth FY 2012-13 FY 2013-14 FY 2014-15 FY 2015-16 FY 2016-17 FY 2017-18 FY 2018-19 FY 2019-20 FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 Streets - 2013 Dollars S6003 Unpaved Alley Paving Projects 0.0%100.0%$0 $325,000 $190,000 $180,000 $0 $0 $0 $0 $0 $0 $0 $0 S6005 Shea Blvd Widening 80.0%20.0%100,000 3,903,000 0 0 0 0 0 0 0 0 0 0 S6008 Pavement Management Program 0.0%100.0%0 1,000,000 0 0 0 0 0 0 0 0 0 0 S6010 Saguaro Blvd Reconstruction 0.0%100.0%0 8,200,000 0 0 0 0 0 0 0 0 0 0 S6047 Shea Blvd Multiuse Path 0.0%100.0%50,000 50,000 366,000 0 0 0 0 0 0 0 0 0 S6053 Fountain Hills Blvd Shoulder Paving 0.0%100.0%60,000 336,000 0 0 0 0 0 0 0 0 0 0 S6054 Highway Safety Improvement Program 0.0%100.0%0 57,000 0 0 0 0 0 0 0 0 0 0 S6056 Shea Blvd. Eastbound Bike Lane and Overlay 0.0%100.0%0 651,000 0 0 0 0 0 0 0 0 0 0 T5011 Traffic Signal-Palisades & Saguaro upgrade 0.0%100.0%0 400,000 0 0 0 0 0 0 0 0 0 0 Total Streets 210,000 14,922,000 556,000 180,000 0 0 0 0 0 0 0 0 Streets Growth Related CIP 80,000 3,122,400 0 0 0 0 0 0 0 0 0 0 Streets Non-Growth Related CIP 130,000 11,799,600 556,000 180,000 0 0 0 0 0 0 0 0 12/5/2013 D - 1 TOWN OF FOUNTAIN HILLS NON-UTILITY DEVELOPMENT FEE STUDY Capital Improvements Program PROJECT/PROGRAM DESCRIPTION Growth Non- Growth Streets - 2013 Dollars S6003 Unpaved Alley Paving Projects 0.0%100.0% S6005 Shea Blvd Widening 80.0%20.0% S6008 Pavement Management Program 0.0%100.0% S6010 Saguaro Blvd Reconstruction 0.0%100.0% S6047 Shea Blvd Multiuse Path 0.0%100.0% S6053 Fountain Hills Blvd Shoulder Paving 0.0%100.0% S6054 Highway Safety Improvement Program 0.0%100.0% S6056 Shea Blvd. Eastbound Bike Lane and Overlay 0.0%100.0% T5011 Traffic Signal-Palisades & Saguaro upgrade 0.0%100.0% Total Streets Streets Growth Related CIP Streets Non-Growth Related CIP ALL YEARS FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 FY 2030-31 FY 2031-32 Growth Non-Growth FY 2013-32 $0 $0 $0 $0 $0 $0 $0 $0 $0 $695,000 $695,000 0 0 0 0 0 0 0 0 3,202,400 800,600 4,003,000 0 0 0 0 0 0 0 0 0 1,000,000 1,000,000 0 0 0 0 0 0 0 0 0 8,200,000 8,200,000 0 0 0 0 0 0 0 0 0 466,000 466,000 0 0 0 0 0 0 0 0 0 396,000 396,000 0 0 0 0 0 0 0 0 0 57,000 57,000 0 0 0 0 0 0 0 0 0 651,000 651,000 0 0 0 0 0 0 0 0 0 400,000 400,000 0 0 0 0 0 0 0 0 3,202,400 12,665,600 15,868,000 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 12/5/2013 D - 2 TOWN OF FOUNTAIN HILLS NON-UTILITY DEVELOPMENT FEE STUDY PROJECTED TAX AND FEE BASED REVENUES (1) Estimate FY 2013-14 FY 2014-15 FY 2015-16 FY 2016-17 FY 2017-18 FY 2018-19 FY 2019-20 FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 FY 2024-25 Operating Revenues Local Sales Tax (recurring)$7,016,880 $7,192,389 $7,234,014 $7,492,600 $7,632,375 $9,319,994 $11,384,526 $11,184,857 $11,481,571 $12,168,420 $11,963,302 $12,410,915 Liquor License Fees 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 Business License Fees 108,960 111,305 114,644 118,083 122,807 127,719 132,828 138,141 143,667 149,413 155,390 161,605 Animal License Fees 47,365 41,006 42,646 44,352 46,126 47,971 49,890 51,886 53,961 56,120 58,364 60,699 Sign Permits 3,350 3,350 3,350 3,350 3,350 3,350 3,350 3,350 3,350 3,350 3,350 3,350 Rezoning/Variance/Special Use 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 Landscaping Permit Fees 1,260 1,310 1,363 1,417 1,474 1,533 1,594 1,658 1,724 1,793 1,865 1,940 Encroachment Permit Fees 35,000 35,000 35,000 35,000 35,000 35,000 35,000 35,000 35,000 35,000 35,000 35,000 Variances 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 Subdivision Fees 21,000 21,000 21,000 21,000 21,000 21,000 21,000 21,000 21,000 21,000 21,000 21,000 Special Event Permit 1,825 2,500 500 500 500 500 500 500 500 500 500 500 Engineering/Inspection Fees 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 Plan Review 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 Inspection Fees 17,000 17,000 17,000 17,000 17,000 17,000 17,000 17,000 17,000 17,000 17,000 17,000 Franchise Fees 303,000 316,400 329,056 342,218 355,907 370,143 384,949 400,347 416,361 433,015 450,336 468,349 Cellular Lease Payment 138,204 140,412 140,412 140,412 140,412 140,412 140,412 140,412 140,412 140,412 140,412 140,412 State Sales Tax 1,936,920 1,990,788 2,060,466 2,182,582 2,267,223 2,273,439 2,341,643 2,411,892 2,363,654 2,434,564 2,507,601 2,582,829 State Income Tax 2,508,960 2,634,433 2,713,466 2,819,870 2,928,716 2,936,291 2,995,016 3,054,917 3,116,015 3,178,335 3,241,902 3,306,740 Fire Insurance Premium Tax 109,769 35,000 36,050 37,492 38,992 40,551 42,173 43,860 45,615 47,439 49,337 51,310 Program Fees 124,848 144,780 148,880 153,185 157,705 162,452 104,655 109,888 115,382 121,151 127,209 133,569 Rental 82,588 94,850 98,212 101,245 104,333 107,645 110,715 113,874 117,124 120,468 123,910 127,451 Taxable Sales 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 Non Taxable Rental 6,500 6,500 6,500 6,500 6,500 6,500 6,500 6,500 6,500 6,500 6,500 6,500 Non Taxable Fees 2,200 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 Sponsorships 10,200 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 Donations 300 1,000 1,000 1,000 1,040 1,082 1,125 1,170 1,217 1,265 1,316 1,369 Reimbursements/Refunds 0 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 Auction Proceeds 1,150 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 Restitution/Ins Proceeds 0 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 Miscellaneous 18,886 19,830 20,822 21,863 22,956 24,104 25,309 26,574 27,903 29,298 30,763 32,301 Court Fines & Fees 246,420 150,012 153,012 156,072 159,194 162,378 165,625 168,938 172,316 175,763 179,278 182,864 Interest/Investment Income 61,200 62,424 64,921 67,518 70,219 73,027 75,948 78,986 82,146 85,432 88,849 92,403 OPERATING REVENUE 12,886,785 13,118,789 13,339,814 13,860,759 14,230,329 15,969,591 18,137,258 18,108,250 18,459,918 19,323,738 19,300,684 19,935,606 Building Permits 299,020 329,020 435,700 489,700 504,600 1,470,080 2,561,140 2,256,900 2,199,700 2,349,600 2,088,600 2,115,800 TOTAL ONE TIME REVENUE 299,020 329,020 435,700 489,700 504,600 1,470,080 2,561,140 2,256,900 2,199,700 2,349,600 2,088,600 2,115,800 Total General Fund Revenue 13,185,805 13,447,809 13,775,514 14,350,459 14,734,929 17,439,671 20,698,398 20,365,150 20,659,618 21,673,338 21,389,284 22,051,406 Construction Sales Tax - Rate 2.6% (2)467,459 572,032 693,329 832,053 875,629 3,894,513 7,656,533 6,879,140 7,083,172 8,055,790 7,232,443 7,702,165 HURF Revenue projections (3)2,049,340 2,073,383 2,134,448 2,198,529 2,263,123 2,325,224 2,395,078 2,461,348 2,535,188 2,611,244 2,689,581 2,770,269 Total $15,702,604 $16,093,224 $16,603,291 $17,381,041 $17,873,681 $23,659,408 $30,750,009 $29,705,638 $30,277,978 $32,340,372 $31,311,308 $32,523,840 (1) Estimated by Town staff. (2) 50% is included within the Local Sales Tax Operating revenue line-item with the remaining 50% dedicated to the Town's Capital Projects Fund. (3) HURF revenues include Vehicle License Tax revenues. Revenues within this fund are dedicated to the Town's Street Maintenance Fund. 12/5/2013D - 3 TOWN OF FOUNTAIN HILLS NON-UTILITY DEVELOPMENT FEE STUDY EXISTING DEBT SERVICE-PRINCIPAL AND INTEREST Projected Projected Principal Outstanding Excluded from Principal Total Assets Category (1)(6/30/12)Interest Maturity FY 2012-13 FY 2013-14 FY 2014-15 FY 2015-16 FY 2016-17 FY 2017-18 Gen. Obligation - (Refunding) Streets YES STR-PT 960,355 3.80%2020 $209,327 $205,819 $208,347 $96,600 $97,436 $99,129 Gen. Obligation - (Refunding) Land Acq. Lake YES OS-PT 367,600 3.80%2020 80,125 78,783 79,750 36,976 37,296 37,944 Gen. Obligation - (Refunding) Library/Museum YES LIB-PT 1,089,015 3.80%2020 237,370 233,393 236,259 109,541 110,489 112,409 Gen. Obligation - (Refunding) Mtn. Bonds YES OS-PT 2,178,030 3.80%2020 474,741 466,786 472,519 219,083 220,979 224,818 Revenue - Community Center NO GG 230,000 5.40%2013 236,038 ----- Revenue - Mtn. Bonds Sales Tax MPC YES OS-PT 775,000 4.70%2021 401,250 409,000 ---- Revenue - Civic Center YES GG-PT 2,410,000 4.50%2020 340,413 345,194 349,038 357,138 359,113 364,938 Revenue - (Refunding) Community Center NO GG 1,734,360 4.00%2021 161,476 254,349 421,096 421,484 196,910 151,980 Revenue - (Refunding) Mtn. Bonds Sales Tax MPC YES OS-PT 2,735,640 4.00%2021 254,699 401,189 664,204 664,816 310,590 239,720 Special Assessment - Refunded 2005 (A / B)NO PR 3,630,000 3.95%2022 409,010 408,323 411,785 409,385 411,485 408,085 Total 2,804,448 2,802,835 2,842,998 2,315,023 1,744,298 1,639,023 Description (1) PT indicates exclusion of debt service within development fee calculations. Other debt issues are treated as having a non-dedicated funding source and are included in their respective development fee calculations. 12/5/2013 D - 4 TOWN OF FOUNTAIN HILLS NON-UTILITY DEVELOPMENT FEE STUDY EXISTING DEBT SERVICE-PRINCIPAL AND INTEREST Projected Principal Excluded from Total Assets Category (1) Gen. Obligation - (Refunding) Streets YES STR-PT Gen. Obligation - (Refunding) Land Acq. Lake YES OS-PT Gen. Obligation - (Refunding) Library/Museum YES LIB-PT Gen. Obligation - (Refunding) Mtn. Bonds YES OS-PT Revenue - Community Center NO GG Revenue - Mtn. Bonds Sales Tax MPC YES OS-PT Revenue - Civic Center YES GG-PT Revenue - (Refunding) Community Center NO GG Revenue - (Refunding) Mtn. Bonds Sales Tax MPC YES OS-PT Special Assessment - Refunded 2005 (A / B)NO PR Total Description (1) PT indicates exclusion of debt service within development fee calculations. Other debt issues are treated as having a non-dedicated funding source and are included in their respective development fee calculations. Projected Projected Projected FY 2018-19 FY 2019-20 FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 $99,589 $66,086 $0 $0 $0 $0 $0 $0 $0 38,120 25,296 ------- 112,931 74,939 ------- 225,861 149,879 ------- --------- --------- 374,750 383,438 ------- 144,724 147,052 116,749 ------ 228,276 231,948 184,151 ------ 409,185 409,685 409,393 408,250 ----- 1,633,435 1,488,323 710,293 408,250 ----- 12/5/2013 D - 5 TOWN OF FOUNTAIN HILLS NON-UTILITY DEVELOPMENT FEE STUDY EXISTING DEBT SERVICE-PRINCIPAL AND INTEREST Projected Principal Excluded from Total Assets Category (1) Gen. Obligation - (Refunding) Streets YES STR-PT Gen. Obligation - (Refunding) Land Acq. Lake YES OS-PT Gen. Obligation - (Refunding) Library/Museum YES LIB-PT Gen. Obligation - (Refunding) Mtn. Bonds YES OS-PT Revenue - Community Center NO GG Revenue - Mtn. Bonds Sales Tax MPC YES OS-PT Revenue - Civic Center YES GG-PT Revenue - (Refunding) Community Center NO GG Revenue - (Refunding) Mtn. Bonds Sales Tax MPC YES OS-PT Special Assessment - Refunded 2005 (A / B)NO PR Total Description (1) PT indicates exclusion of debt service within development fee calculations. Other debt issues are treated as having a non-dedicated funding source and are included in their respective development fee calculations. Projected Projected FY 2027-28 FY 2028-29 FY 2029-30 FY 2030-31 FY 2031-32 FY 2032-33 FY 2033-34 FY 2034-35 $0 $0 $0 $0 $0 $0 $0 $0 -------- -------- -------- -------- -------- -------- -------- -------- -------- -------- 12/5/2013 D - 6 TOWN OF FOUNTAIN HILLS NON-UTILITY DEVELOPMENT FEE STUDY ENR-CCI Area Year Period Index Source ENR-CCI Index ENR-CCI Ratio United States 2013 Annual ENR Construction Cost Index 9552 1.000 United States 2012 Annual ENR Construction Cost Index 9308 1.026 United States 2011 Annual ENR Construction Cost Index 9070 1.053 United States 2010 Annual ENR Construction Cost Index 8802 1.085 United States 2009 Annual ENR Construction Cost Index 8570 1.115 United States 2008 Annual ENR Construction Cost Index 8310 1.149 United States 2007 Annual ENR Construction Cost Index 7966 1.199 United States 2006 Annual ENR Construction Cost Index 7751 1.232 United States 2005 Annual ENR Construction Cost Index 7446 1.283 United States 2004 Annual ENR Construction Cost Index 7115 1.343 United States 2003 Annual ENR Construction Cost Index 6695 1.427 United States 2002 Annual ENR Construction Cost Index 6538 1.461 United States 2001 Annual ENR Construction Cost Index 6334 1.508 United States 2000 Annual ENR Construction Cost Index 6221 1.535 United States 1999 Annual ENR Construction Cost Index 6059 1.576 United States 1998 Annual ENR Construction Cost Index 5920 1.614 United States 1997 Annual ENR Construction Cost Index 5826 1.640 United States 1996 Annual ENR Construction Cost Index 5620 1.700 United States 1995 Annual ENR Construction Cost Index 5471 1.746 United States 1994 Annual ENR Construction Cost Index 5408 1.766 United States 1993 Annual ENR Construction Cost Index 5210 1.833 United States 1992 Annual ENR Construction Cost Index 4985 1.916 United States 1991 Annual ENR Construction Cost Index 4835 1.976 United States 1990 Annual ENR Construction Cost Index 4732 2.019 United States 1989 Annual ENR Construction Cost Index 4615 2.070 United States 1988 Annual ENR Construction Cost Index 4519 2.114 United States 1987 Annual ENR Construction Cost Index 4406 2.168 United States 1986 Annual ENR Construction Cost Index 4295 2.224 United States 1985 Annual ENR Construction Cost Index 4195 2.277 United States 1984 Annual ENR Construction Cost Index 4146 2.304 United States 1983 Annual ENR Construction Cost Index 4066 2.349 United States 1982 Annual ENR Construction Cost Index 3825 2.497 United States 1981 Annual ENR Construction Cost Index 3535 2.702 United States 1980 Annual ENR Construction Cost Index 3237 2.951 12/5/2013D - 7