HomeMy WebLinkAboutRes 2014-242165245.1
RESOLUTION NO. 2014-24
A RESOLUTION OF THE MAYOR AND COUNCIL OF THE TOWN OF
FOUNTAIN HILLS, ARIZONA, ADOPTING DEVELOPMENT FEES IN
COMPLIANCE WITH 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) 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 February 6, 2014, to
receive public comment on the LUA/IIP and (iii) The Town Council approved Resolution
2014-14 on March 10, 2014, 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 April 9, 2014, on the document entitled Development Impact Fee Report,
dated March 11, 2014, prepared by Raftelis Financial Consultant, Inc. (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.
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 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 are
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.
PASSED AND ADOPTED bythe Mayor and Council of theTown of Fountain Hills,
May 15,2014.
FOR THE TOWN OF FOUNTAIN HILLS:
4*inaa M.Kavanagh,Mayor^
REVIEWED BY:
Kenneth W.Buchanan,Town Manager
2165245.1
ATTESTED TO:
Bevelyn J.Ben
APPROVED AS TO FORM:
fl
fstod/.A
AndrewJ.McGuire,TownAttorney
2165245.1
EXHIBIT A
TO
RESOLUTION NO. 2014-24
[Final Development Fee Study]
See following pages.
Development Impact Fee Report
Final |May 7, 2014
Town of Fountain Hills
ARIZONA
ii
Contents
Introduction and Overview ...........................................................................................................................1
Methodologies ..........................................................................................................................................3
Fire and Emergency Development Impact Fee .............................................................................................4
Eligible Assets Replacement Value ...........................................................................................................5
Infrastructure Improvements Plan Projects .............................................................................................5
Cash Flow ..................................................................................................................................................6
Debt Proceeds, Issuance Costs and Debt Service .................................................................................6
NPV of Future Growth-Related Debt Interest ......................................................................................6
Revenue Projections .............................................................................................................................6
Parks and Recreation Development Impact Fee...........................................................................................7
Eligible Assets Replacement Value ...........................................................................................................7
Infrastructure Improvements Plan Projects .............................................................................................8
Cash Flow ..................................................................................................................................................8
Revenue Projections .............................................................................................................................8
List of Tables
Table 1 Fire and Emergency Development Impact Fees ................................................................2
Table 2 Parks and Recreation Development Impact Fees ..............................................................2
Table 3 Current Development Impact Fees (Except Streets)..........................................................3
Table 4 Current Strees Development Impact Fees .........................................................................3
Table 5 Fire and Emergency Development Impact Fees ................................................................5
Table 6 Parks and Recreation Development Impact Fees ..............................................................7
iii
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
NPV –Net Present Value
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
1
Introduction and Overview
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.Land Use Assumptions (LUA)identify the current and projected service units by service
area. The Town LUA is summarized in the Final LUA and IIP Report dated March 10,
2014. This report outlines the projected growth in residential population and housing
units and non-residential employment and square feet.
2.Infrastructure Improvements Plan (IIP) identifies the current and future facilities to serve
the projected growth in service units identified within the Final LUA and IIP Report
dated March 10, 2014.
3.Development Impact Fee report (Fee Report), the subject of this document,outlines the
proposed development impact fee by fee category and service area based on the eligible
facilities and service units identified in the separate Final LUA and IIP Report dated
March 10, 2014. The Fee Report incorporates capital funding analyses, offset
calculations (if any)and cash flow projections for the proposed development impact fees.
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 Parks and Recreation, and Library and Museum
fee areas as a result of changes to ARS § 9-463.05, enacted in April 2011. The purpose of this
study is to update the Town’s development impact fee categori es:
Fire and Emergency Medical Services (EMS)
Law Enforcement
Parks and Recreation
Streets
Open Space
Library and Museum
Appendix C includes a summary of the Town’s current non-utility development impact fees.
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.
2
Table 1 summarizes the proposed residential and non-residential Fire and Emergency
development impact fees to be assessed Town-wide.
Table 1
Fire and Emergency Development Impact Fees
Table 2 summarizes the proposed residential Parks and Recreation development impact fees to
be assessed Town-wide.
Table 2
Parks and Recreation Development Impact Fees
The draft development impact fees discussed in this report are proposed to be effective August 1,
2014.Tables 3 and 4 summarize the Town’s current non-utility development impact fees. The
Streets development impact fee summarized in Table 4 includes different fees assessed to single-
family and multi-family residential and commercial, office, hotel and industrial categories.
Fee Category
Residential per
Dwelling Unit
Commercial
/Industrial
per Sq. Ft.
Fire and Emergency $300 $0.243
Fee Category
Residential per
Dwelling Unit
Parks and Recreation $1,301
3
Table 3
Current Development Impact Fees (Except Streets)
Table 4
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.If warranted
after future updates to the Town’s long-term capital plan and IIP, the Town may reinstate these
and other development impact fees that recover the proportional impact of the identified facilities
from new development.
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 escalated original cost less developer contributions as well as growth-
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
4
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 necessary public services 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 portion 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.Proposed
fee calculations recognize the proportional cost of current and future facilities benefiting new
development. Funding for the portion of facilities benefiting existing development will need to
be from another source, which may include general fund revenues, debt and/or future dedicated
tax-based funding sources documented in the Fee Report. However, the IIP eligible facilities
documented in this report are fully allocated to growth without a benefit to existing development
with no offset required.
Fire and Emergency Development Impact Fee
Fire and Emergency development impact fees will be assessed Town-wide.Table 5 summarizes
proposed Fire and Emergency development impact fees by type of development.
5
Table 5
Fire and Emergency Development Impact Fees
Residential developments are assessed fees per housing unit while non-residential commercial,
public, lodging and industrial development categories are assessed per 1,000 square feet of
development.Fees are proposed to be effective August 1,2014.
The Town’s Fire and Emergency development impact fee was calculated using the hybrid
approach that considers:
Replacement value of constructed and eligible facilities.
Current cost of future growth-related IIP projects.
Increase reflecting net present value (NPV) of future interest of growth-related portion of
projected debt issues.
Appendix A summarizes the calculated Fire and Emergency development impact fees per
residential housing unit and non-residential square feet.The eligible costs are allocated between
residential and non-residential development types based on projected square feet of development
at FY 2034-35.Service units reflect existing and projected housing units and non-residential
square feet detailed in the Final LUA IIP Report.The capacity of planned facilities will be
exceeded in FY 2034-35 and the total current and projected FY 2034-35 square feet are used to
allocate costs before calculating draft development impact fees by type of development.
The components of the calculated Fire and Emergency development impact fee and associated
cash flow projection is discussed in the following sections.
Eligible Assets Replacement Value
The replacement value of current eligible Fire and Emergency facilities is approximately $1.6
million excluding grant funded and donated assets as detailed in the Final LUA and IIP Report
and supporting worksheets in Appendix A. The asset value includes existing fire stations, land,
specialized vehicles, apparatus, equipment and miscellaneous assets and excludes administrative
vehicles, grant funded or donated assets.
Infrastructure Improvements Plan Projects
The total cost of the proposed fire station number 3 is $2.8 million anticipated to be constructed
from FY 2021-22 through FY 2022-23 as detailed in the Final LUA and IIP Report and
summarized in Appendix A to this report.The new fire station is allocated fully to future
Fee Category
Residential per
Dwelling Unit
Commercial
/Industrial
per Sq. Ft.
Fire and Emergency $300 $0.243
6
development (growth)benefiting future residential and non-residential developments.Based on
the timing of the projects, an annual capital project inflation rate of 3%, compounded annually, is
applied to project cost estimates and illustrated in the cash flow and supporting worksheet also
provided in Appendix A.
Cash Flow
A cash flow analysis has been compiled to summarize the sources and uses and funding
requirements of Fire and Emergency development impact fee fund included in Appendix A. The
sections below outline projects and cash flow uses of IIP projects,debt issuance and reserve
requirements, debt service funded through development impact fee revenues, interest income,
and debt proceeds. This section summarizes the assumptions and projections outlined in
Appendix A.
The Fire and Emergency development impact fee fund has a fund balance of $43,624 as of June
30, 2013 available to fund future growth-related improvements.
Debt Proceeds, Issuance Costs and Debt Service
Debt is projected to be issued to fund the proposed IIP eligible capital improvements. Debt
projections reflect availability of revenues generated from development impact fees balanced
against the timing of the project and availability of cash to partially fund anticipated capital
projects. Assumptions regarding the term, interest rate, debt service requirement and issuance
expenses are also summarized in Appendix C.
NPV of Future Growth-Related Debt Interest
The NPV of future interest payments associated with future development’s portion of debt
funded Fire and Emergency IIP facilities is projected to be approximately $1.6 million. The
NPV interest reflects today’s value associated with funding the growth -related facilities and is
eligible for inclusion as assessed development impact fees are anticipated to repay the growth -
related debt service.The annual debt service and NPV associated with projected debt issues are
detailed in Appendix A.
Revenue Projections
Projected Fire and Emergency development impact fee revenues are based on the proposed fees
by residential and non-residential development type, indexed for inflation, applied to projected
development for the following development types:
Residential
o Single-family residential
o Multi-family residential
Non-residential
o Commercial / lodging
o Industrial
7
Residential developments are assessed fees per housing unit while non-residential development
categories are assessed per 1,000 square feet of development.The fee increases are delayed 24
months after the August 1, 2014 effective date or two years to FY 2016-17 to conservatively
project revenues for plats that have already been approved and will be assessed the current Fire
and Emergency development impact fee. Plats that have been approved will be assessed the
current Fire and Emergency development impact fee since the fee is increasing while plats
approved after August 1, 2014 may be assessed the proposed fees.Appendix A summarizes the
projected development impact fee revenues by type of development.
Parks and Recreation Development Impact Fee
Parks and Recreation development impact fees will be assessed Town-wide.Table 6
summarizes the proposed Parks and Recreation development impact fees for residential
development.
Table 6
Parks and Recreation Development Impact Fees
Residential developments are assessed fees per housing unit.Fees are proposed to be effective
August 1, 2014.
The Town’s Parks and Recreation development impact fee was calculated using the hybrid
approach that considers:
Replacement value of constructed and eligible facilities.
Current cost of future growth-related IIP projects.
Appendix B summarizes the calculated Parks and Recreation development impact fees per
housing unit. The components of the calculated Parks and Recreation development impact fee
and associated cash flow projection is discussed in the following sections.
Eligible Assets Replacement Value
The replacement value of current eligible Parks and Recreation facilities is approximately $21.3
million excluding grant funded assets as detailed in the Final LUA and IIP Report and Appendix
B.The asset value includes existing parks and improvements,land, equipment and
miscellaneous assets and excludes grant funded assets.
Fee Category
Residential per
Dwelling Unit
Parks and Recreation $1,301
8
Infrastructure Improvements Plan Projects
The total cost of the planned Town funded Parks and Recreation IIP eligible improvements is
$0.7 million anticipated to be constructed in FY 2022-23 as detailed in the Final LUA and IIP
Report and summarized in Appendix B to this report.The future park improvements are
allocated fully to future development (growth)benefiting future residential developments.Based
on the timing of the projects, an annual capital project inflation rate of 3%, compounded
annually, is applied to project cost estimates and illustrated in the cash flow and supporting
worksheets also provided in Appendix B.
Cash Flow
A cash flow analysis has been compiled to summarize the sources and uses of the Parks and
Recreation development impact fee fund. Appendix B details the cash flow analysis. The
sections below outline projects and cash flow uses of IIP projects funded through development
impact fee revenues and interest income.The Town does not have outstanding debt repaid
through Parks and Recreation development impact fees and additional debt is not projected to be
required to fund future IIP eligible facilities.This section summarizes the assumptions and
projections outlined in Appendix B.
The Parks and Recreation development impact fee fund has a fund balance of approximately
$47,859 as of June 30, 2013 available to fund future eligible Park and Recreation facilities.
Revenue Projections
Projected Parks and Recreation development impact fee revenues are based on the draft fee by
residential housing unit, indexed for inflation, applied to projected single-family and multi-
family residential development.Residential developments are assessed fees per housing unit.
The fee decrease is effective in FY 2014-15 assessed to all plats, including those already
approved, as the 24 month delay applies only to fee increases.The fee is not recommended to be
assessed to non-residential development categories as outlined in the Final LUA and IIP Report.
Appendix B summarizes the projected development impact fee revenues by type of development.
APPENDIX A
Fire and Emergency
TOWN OF FOUNTAIN HILLS
FIRE & EMERGENCY SERVICES
FEE CALCULATION
Hybrid
Description Approach
Capital Assets
Existing Assets $4,289,257
Add/Less: Beginning Fund Balance [1]0
Add:CIP 2,767,000
Add: Study Cost 9,286
Less: Grant Funds (59,789)
Less: Donated Assets (2,644,859)
Subtotal $4,360,895
Financing Costs
Less: Outstanding Principal - Total $0
Add: Outstanding Interest - Total 0
Add: Interest on New Debt 1,560,139
Subtotal 1,560,139
Applicable Capital & Financing $5,921,033
Residential FY 2034-35 85.8%
Residential Allocation $5,080,179
Residential Units 16,924
Fee per dwelling Unit $300
Commercial FY 2034-35 14.2%
Non-residential Allocation $840,854
Non-residential Units 3,455,653
Fee per s.f.$0.243
[1] Hybrid method assumes a beginning balance of $0.
A - 1A - 1
TOWN OF FOUNTAIN HILLS
NON-UTILITY DEVELOPMENT FEE STUDY
FIRE & EMERGENCY REVENUE
Hybrid Revenue 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 FY 2025-26
Fees [1] [2] [3]
All Residential per dwelling $207 $207 $207 $300 $309 $318 $328 $338 $348 $358 $369 $380 $391
Non-Residential per s.f.0.129 $0.129 $0.129 $0.243 0.250 0.258 0.266 0.274 0.282 0.290 0.299 0.308 0.317
Revenue
All Residential $4,347 $5,382 $10,350 $16,500 $15,450 $17,490 $172,200 $92,950 $113,100 $132,460 $108,855 $134,900 $113,390
Non-Residential 1,498 1,498 1,498 2,821 2,903 2,996 3,088 3,181 3,274 3,367 25,897 3,576 3,681
Interest Income 1,146 1,622 1,951 2,477 3,117 3,793 6,843 11,120 14,072 7,973 1,610 0 0
Total Revenue $6,990 $8,501 $13,799 $21,799 $21,469 $24,278 $182,132 $107,251 $130,446 $143,800 $136,362 $138,476 $117,071
Debt Service $0 $0 $0 $0 $0 $0 $0 $0 $0 $30,893 $295,293 $295,293 $295,293
Other Cash In-Flows/(Out-Flows)
Capital Expenditures $0 $0 $0 $0 $0 $0 $0 $0 ($353,594)($3,354,415)$0 $0 $0
Development Fee Study Costs 0 0 0 0 0 0 0 0 0 0 0 0 0
Debt Proceeds 0 0 0 0 0 0 0 0 350,000 3,000,000 0 0 0
Debt Service Reserve Deposit 0 0 0 0 0 0 0 0 (30,863)(264,536)0 0 0
Debt Issuance Costs 0 0 0 0 0 0 0 0 (3,500)(30,000)0 0 0
Subtotal 0 0 0 0 0 0 0 0 (37,956)(648,951)0 0 0
Increase/(Decrease) in Cash Balance $6,990 $8,501 $13,799 $21,799 $21,469 $24,278 $182,132 $107,251 $92,490 ($536,044)($158,931)($156,817)($178,222)
Beginning Balance $43,624 $50,614 $59,116 $72,915 $94,714 $116,183 $140,461 $322,593 $429,844 $522,334 ($13,711)($172,642)($329,459)
Ending Balance $50,614 $59,116 $72,915 $94,714 $116,183 $140,461 $322,593 $429,844 $522,334 ($13,711)($172,642)($329,459)($507,681)
[1] New fees are assumed effective 8/1/14.
[2] Fee increases are delayed 24 months for plats that
are already approved. Delay is assumed to apply to
all development to conservatively project revenues.
[3] Fees indexed for inflation of 3% per year.
A - 2A - 2
TOWN OF FOUNTAIN HILLS
NON-UTILITY DEVELOPMENT FEE STUDY
FIRE & EMERGENCY REVENUE
Hybrid Revenue
Fees [1] [2] [3]
All Residential per dwelling
Non-Residential per s.f.
Revenue
All Residential
Non-Residential
Interest Income
Total Revenue
Debt Service
Other Cash In-Flows/(Out-Flows)
Capital Expenditures
Development Fee Study Costs
Debt Proceeds
Debt Service Reserve Deposit
Debt Issuance Costs
Subtotal
Increase/(Decrease) in Cash Balance
Beginning Balance
Ending Balance
[1] New fees are assumed effective 8/1/14.
[2] Fee increases are delayed 24 months for plats that
are already approved. Delay is assumed to apply to
all development to conservatively project revenues.
[3] Fees indexed for inflation of 3% per year.
FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 FY 2030-31 FY 2031-32 FY 2032-33 FY 2033-34 FY 2034-35
$403 $415 $427 $440 $453 $467 $481 $495 $510
0.327 0.337 0.347 0.357 0.368 0.379 0.390 0.402 0.414
$106,795 $87,150 $111,020 $169,400 $0 $0 $0 $0 $0
3,797 3,913 4,029 4,145 4,273 4,400 4,528 205,668 4,807
0 0 0 0 0 0 0 0 0
$110,592 $91,063 $115,049 $173,545 $4,273 $4,400 $4,528 $205,668 $4,807
$295,293 $295,293 $295,293 $295,293 $295,293 $295,293 $295,293 $295,293 $295,293
$0 $0 $0 $0 $0 $0 $0 $0 $0
0 0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0 0
($184,701)($204,230)($180,244)($121,748)($291,020)($290,892)($290,765)($89,625)($290,486)
($507,681)($692,382)($896,612)($1,076,855)($1,198,603)($1,489,623)($1,780,515)($2,071,280)($2,160,905)
($692,382)($896,612)($1,076,855)($1,198,603)($1,489,623)($1,780,515)($2,071,280)($2,160,905)($2,451,391)
A - 3A - 3
TOWN OF FOUNTAIN HILLS
NON-UTILITY DEVELOPMENT FEE STUDY
CAPITAL IMPROVEMENTS PROGRAM
PROJECT/PROGRAM DESCRIPTION Growth
Non-
Growth 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
Parks & Recreation - INFLATED [1]
P3008 Four Peaks Neighborhood Park Phase II & III 0.0%100.0%0 0 0 0 0 0 0 0 0 0 0 0
P3011 Fountain Park, Phase VI 0.0%100.0%825,000 716,108 0 0 0 0 0 0 0 0 0 0
P3014 Community Park - Ellman Property 100.0%0.0%0 0 0 0 0 10,985,281 22,629,679 0 0 0 0 0
P3022 Fountain Lake Water Quality Improvements 0.0%100.0%300,000 0 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 0 958,212 0 0
P3024 Urban Trail Improvements 0.0%100.0%20,000 21,218 21,855 22,510 0 0 0 0 0 0 0 0
Total Parks & Recreation 1,145,000 737,326 21,855 22,510 0 10,985,281 22,629,679 0 0 958,212 0 0
Parks & Recreation Improvements Growth Related CIP $0 $0 $0 $0 $0 $10,985,281 $22,629,679 $0 $0 $958,212 $0 $0
Parks & Recreation Improvements Non-Growth Related CIP $1,145,000 $737,326 $21,855 $22,510 $0 $0 $0 $0 $0 $0 $0 $0
Parks & Recreation Improvements Ellman Funded CIP $0 $0 $0 $0 $0 $10,985,281 $22,629,679 $0 $0 $0 $0 $0
[1] CIP is inflated at a 3% rate, compounded annually.
A - 4
TOWN OF FOUNTAIN HILLS
NON-UTILITY DEVELOPMENT FEE STUDY
CAPITAL IMPROVEMENTS PROGRAM
PROJECT/PROGRAM DESCRIPTION Growth
Non-
Growth
Parks & Recreation - INFLATED [1]
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 Improvements Growth Related CIP
Parks & Recreation Improvements Non-Growth Related CIP
Parks & Recreation Improvements Ellman Funded CIP
[1] CIP is inflated at a 3% rate, compounded annually.
ALL YEARS
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 50,000 50,000
0 0 0 0 0 0 0 0 1,541,108 1,541,108
0 0 0 0 0 0 0 33,614,960 0 33,614,960
0 0 0 0 0 0 0 0 300,000 300,000
0 0 0 0 0 0 0 958,212 0 958,212
0 0 0 0 0 0 0 0 135,583 135,583
0 0 0 0 0 0 0 34,573,173 2,026,690 36,599,863
$0 $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0 $0
A - 5
TOWN OF FOUNTAIN HILLS
NON-UTILITY DEVELOPMENT FEE STUDY
CAPITAL IMPROVEMENTS PROGRAM
PROJECT/PROGRAM DESCRIPTION Growth
Non-
Growth 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
Fire & Emergency Services - INFLATED [1]
F4013 Fire Station 3 Construction 100.0%0.0%0 0 0 0 0 0 0 0 353,594 3,354,415 0 0
F4015 Fire Station 1 Renovation 0.0%100.0%420,000 0 0 0 0 0 0 0 0 0 0 0
F4025 Portable Live Fire Training Unit 0.0%100.0%160,000 0 0 0 0 0 0 0 0 0 0 0
F4027 Assistance to Fire Fighters Grants - Radios 0.0%100.0%120,000 0 0 0 0 0 0 0 0 0 0 0
F4005 Fire Station 2 Relocation 0.0%100.0%
Total Fire & Emergency Services 700,000 0 0 0 0 0 0 0 353,594 3,354,415 0 0
Fire & Emergency Services Growth Related CIP $0 $0 $0 $0 $0 $0 $0 $0 $353,594 $3,354,415 $0 $0
Fire & Emergency Services Non-Growth Related CIP $700,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
[1] CIP is inflated at a 3% rate, compounded annually.
A - 6
TOWN OF FOUNTAIN HILLS
NON-UTILITY DEVELOPMENT FEE STUDY
CAPITAL IMPROVEMENTS PROGRAM
PROJECT/PROGRAM DESCRIPTION Growth
Non-
Growth
Fire & Emergency Services - INFLATED [1]
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
[1] CIP is inflated at a 3% rate, compounded annually.
ALL YEARS
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 3,708,009 0 3,708,009
0 0 0 0 0 0 0 0 495,000 495,000
0 0 0 0 0 0 0 0 160,000 160,000
0 0 0 0 0 0 0 0 120,000 120,000
0 0 0 0 0 0 0 3,708,009 775,000 4,483,009
$0 $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0 $0
A - 7
TOWN OF FOUNTAIN HILLS
FIRE & EMERGENCY SERVICES
FUTURE GROWTH-RELATED DEBT
FY 2021-22
FY 2021-22
Principal 385,000
Interest 5.0%
Period 20
Payment 30,893
Interest 232,868
Discount Interest 163,221
Start Year 2022
Series 2022 (1)Series 2023 (1)
Fiscal Year
Ending Principal Interest Principal Total P&I
2022 385,000 0 0
2023 373,357 19,250 11,643 30,893
2024 361,131 18,668 12,226 30,893
2025 348,294 18,057 12,837 30,893
2026 334,816 17,415 13,479 30,893
2027 320,663 16,741 14,153 30,893
2028 305,803 16,033 14,860 30,893
2029 290,199 15,290 15,603 30,893
2030 273,816 14,510 16,383 30,893
2031 256,613 13,691 17,203 30,893
2032 238,551 12,831 18,063 30,893
2033 219,585 11,928 18,966 30,893
2034 199,671 10,979 19,914 30,893
2035 178,761 9,984 20,910 30,893
2036 156,805 8,938 21,955 30,893
2037 133,752 7,840 23,053 30,893
2038 109,546 6,688 24,206 30,893
2039 84,130 5,477 25,416 30,893
2040 57,444 4,207 26,687 30,893
2041 29,422 2,872 28,021 30,893
2042 (0)1,471 29,422 30,893
Subtotal 232,868$385,000$617,868$
NPV of Interest Payments $163,221
(1) Equal amortized debt payments
A - 8A - 8
TOWN OF FOUNTAIN HILLS
FIRE & EMERGENCY SERVICES
NPV FUTURE GROWTH-RELATED DEBT
FY 2022-23
FY 2022-23
Principal 3,295,000
Interest 5.0%
Period 20
Payment 264,399
Interest 1,992,987
Discount Interest 1,560,139
Start Year 2023
Series 2023 (1)Series 2024 (1)
Fiscal Year
Ending Principal Interest Principal Total P&I
2023 3,295,000 0 0
2024 3,195,351 164,750 99,649 264,399
2025 3,090,719 159,768 104,632 264,399
2026 2,980,855 154,536 109,863 264,399
2027 2,865,499 149,043 115,357 264,399
2028 2,744,375 143,275 121,124 264,399
2029 2,617,194 137,219 127,181 264,399
2030 2,483,654 130,860 133,540 264,399
2031 2,343,438 124,183 140,217 264,399
2032 2,196,210 117,172 147,227 264,399
2033 2,041,622 109,811 154,589 264,399
2034 1,879,303 102,081 162,318 264,399
2035 1,708,869 93,965 170,434 264,399
2036 1,529,913 85,443 178,956 264,399
2037 1,342,010 76,496 187,904 264,399
2038 1,144,711 67,100 197,299 264,399
2039 937,547 57,236 207,164 264,399
2040 720,025 46,877 217,522 264,399
2041 491,627 36,001 228,398 264,399
2042 251,809 24,581 239,818 264,399
2043 0 12,590 251,809 264,399
Subtotal 1,992,987$3,295,000$5,287,986$
NPV of Interest Payments $1,396,918
(1) Equal amortized debt payments
A - 9A - 9
APPENDIX B
Parks and Recreation
TOWN OF FOUNTAIN HILLS
PARKS & RECREATION
FEE CALCULATION
Hybrid
Description Method
Capital Assets
Existing Assets $24,303,533
Add/Less: Beginning Fund Balance [1]0
Add:CIP 28,313,000
Add: Study Cost 9,286
Less: Grant Funds (3,001,637)
Less Developer Funded Improvements (27,600,000)
Less: Donated Assets 0
Subtotal 22,024,182
Financing Costs
Less: Outstanding Principal - Total 0
Add: Outstanding Interest - Total 0
Add: Interest on New Debt [2]0
Subtotal 0
Applicable Capital & Financing $22,024,182
Residential Units 16,924
Fee per dwelling Unit $1,301
[1] Hybrid method assumes a beginning balance of $0.
[2] Consists of NPV of interest on new debt issued for Growth Related CIP projects.
B - 1
TOWN OF FOUNTAIN HILLS
NON-UTILITY DEVELOPMENT FEE STUDY
PARKS & RECREATION REVENUE
Hybrid Revenue 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 FY 2025-26
Fees [1]
All Residential per dwelling $2,118 $1,301 $1,340 $1,380 $1,421 $1,464 $1,508 $1,553 $1,600 $1,648 $1,697 $1,748 $1,800
Revenue
All Residential $44,478 $33,826 $67,000 $75,900 $71,050 $80,520 $791,700 $427,075 $520,000 $609,760 $500,615 $620,540 $522,000
Delopment Fee Credits 0 0 0 0 0 0 (226,200)(232,950)(320,000)(329,600)(296,975)(305,900)(180,000)
Interest Income 1,587 3,325 4,937 7,229 9,650 12,213 25,663 37,928 46,284 40,645 34,259 43,195 52,452
Total Revenue $46,065 $37,151 $71,937 $83,129 $80,700 $92,733 $591,163 $232,053 $246,284 $320,805 $237,899 $357,835 $394,452
Debt Service $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Other Cash In-Flows/(Out-Flows)
Capital Expenditures $0 $0 $0 $0 $0 ($10,985,281)($22,629,679)$0 $0 ($958,212)$0 $0 $0
Development Fee Study Costs 0 0 0 0 0 0 0 0 0 0 0 0 0
Developer Constructed 0 0 0 0 0 10,985,281 22,629,679 0 0 0 0 0 0
Debt Proceeds 0 0 0 0 0 0 0 0 0 0 0 0 0
Debt Service Reserve Deposit 0 0 0 0 0 0 0 0 0 0 0 0 0
Debt Issuance Costs 0 0 0 0 0 0 0 0 0 0 0 0 0
Subtotal 0 0 0 0 0 0 0 0 0 (958,212)0 0 0
Increase/(Decrease) in Cash Balance $46,065 $37,151 $71,937 $83,129 $80,700 $92,733 $591,163 $232,053 $246,284 ($637,407)$237,899 $357,835 $394,452
Beginning Balance $47,859 $93,924 $131,075 $203,013 $286,141 $366,841 $459,575 $1,050,737 $1,282,790 $1,529,074 $891,667 $1,129,567 $1,487,402
Ending Balance $93,924 $131,075 $203,013 $286,141 $366,841 $459,575 $1,050,737 $1,282,790 $1,529,074 $891,667 $1,129,567 $1,487,402 $1,881,854
[1] New fees are assumed effective 8/1/14.
[2] Fees are credited for development within Ellman
property in leiu of completing park projects.
B - 2B - 2
TOWN OF FOUNTAIN HILLS
NON-UTILITY DEVELOPMENT FEE STUDY
PARKS & RECREATION REVENUE
Hybrid Revenue
Fees [1]
All Residential per dwelling
Revenue
All Residential
Delopment Fee Credits
Interest Income
Total Revenue
Debt Service
Other Cash In-Flows/(Out-Flows)
Capital Expenditures
Development Fee Study Costs
Developer Constructed
Debt Proceeds
Debt Service Reserve Deposit
Debt Issuance Costs
Subtotal
Increase/(Decrease) in Cash Balance
Beginning Balance
Ending Balance
[1] New fees are assumed effective 8/1/14.
[2] Fees are credited for development within Ellman
property in leiu of completing park projects.
FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 FY 2030-31 FY 2031-32 FY 2032-33 FY 2033-34 FY 2034-35
$1,854 $1,910 $1,967 $2,026 $2,087 $2,150 $2,215 $2,281 $2,349
$491,310 $401,100 $511,420 $780,010 $0 $0 $0 $0 $0
(148,320)(95,500)(49,175)(50,650)0 0 0 0 0
63,825 74,677 87,740 108,268 121,697 125,348 129,108 132,981 136,971
$406,815 $380,277 $549,985 $837,628 $121,697 $125,348 $129,108 $132,981 $136,971
$0 $0 $0 $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0 $0 $0 $0
0 0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0 0
$406,815 $380,277 $549,985 $837,628 $121,697 $125,348 $129,108 $132,981 $136,971
$1,881,854 $2,288,669 $2,668,945 $3,218,930 $4,056,558 $4,178,255 $4,303,603 $4,432,711 $4,565,692
$2,288,669 $2,668,945 $3,218,930 $4,056,558 $4,178,255 $4,303,603 $4,432,711 $4,565,692 $4,702,663
B - 3B - 3
TOWN OF FOUNTAIN HILLS
NON-UTILITY DEVELOPMENT FEE STUDY
CAPITAL IMPROVEMENTS PROGRAM
PROJECT/PROGRAM DESCRIPTION Growth
Non-
Growth 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
Parks & Recreation - 2013 Dollars
P3008 Four Peaks Neighborhood Park Phase II & III 0.0%100.0%$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
P3011 Fountain Park, Phase VI 0.0%100.0%825,000 675,000 0 0 0 0 0 0 0 0 0 0
P3014 Community Park - Ellman Property 100.0%0.0%0 0 0 0 0 9,200,000 18,400,000 0 0 0 0 0
P3022 Fountain Lake Water Quality Improvements 0.0%100.0%300,000 0 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 0 713,000 0 0
P3024 Urban Trail Improvements 0.0%100.0%20,000 20,000 20,000 20,000 0 0 0 0 0 0 0 0
Total Parks & Recreation 1,145,000 695,000 20,000 20,000 0 9,200,000 18,400,000 0 0 713,000 0 0
Parks & Recreation Growth Related CIP 0 0 0 0 0 0 0 0 0 713,000 0 0
Parks & Recreation Non-Growth Related CIP 1,145,000 695,000 20,000 20,000 0 0 0 0 0 0 0 0
Parks & Recreation Improvements Developer Funded CIP 0 0 0 0 0 9,200,000 18,400,000 0 0 0 0 0
B - 4
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 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 $50,000 $50,000
0 0 0 0 0 0 0 0 1,500,000 1,500,000
0 0 0 0 0 0 0 27,600,000 0 27,600,000
0 0 0 0 0 0 0 0 300,000 300,000
0 0 0 0 0 0 0 713,000 0 713,000
0 0 0 0 0 0 0 0 130,000 130,000
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
B - 5
TOWN OF FOUNTAIN HILLS
NON-UTILITY DEVELOPMENT FEE STUDY
CAPITAL IMPROVEMENTS PROGRAM
PROJECT/PROGRAM DESCRIPTION Growth
Non-
Growth 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
Parks & Recreation - INFLATED [1]
P3008 Four Peaks Neighborhood Park Phase II & III 0.0%100.0%0 0 0 0 0 0 0 0 0 0 0 0
P3011 Fountain Park, Phase VI 0.0%100.0%825,000 716,108 0 0 0 0 0 0 0 0 0 0
P3014 Community Park - Ellman Property 100.0%0.0%0 0 0 0 0 10,985,281 22,629,679 0 0 0 0 0
P3022 Fountain Lake Water Quality Improvements 0.0%100.0%300,000 0 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 0 958,212 0 0
P3024 Urban Trail Improvements 0.0%100.0%20,000 21,218 21,855 22,510 0 0 0 0 0 0 0 0
Total Parks & Recreation 1,145,000 737,326 21,855 22,510 0 10,985,281 22,629,679 0 0 958,212 0 0
Parks & Recreation Improvements Growth Related CIP $0 $0 $0 $0 $0 $10,985,281 $22,629,679 $0 $0 $958,212 $0 $0
Parks & Recreation Improvements Non-Growth Related CIP $1,145,000 $737,326 $21,855 $22,510 $0 $0 $0 $0 $0 $0 $0 $0
Parks & Recreation Improvements Ellman Funded CIP $0 $0 $0 $0 $0 $10,985,281 $22,629,679 $0 $0 $0 $0 $0
[1] CIP is inflated at a 3% rate, compounded annually.
B - 6
TOWN OF FOUNTAIN HILLS
NON-UTILITY DEVELOPMENT FEE STUDY
CAPITAL IMPROVEMENTS PROGRAM
PROJECT/PROGRAM DESCRIPTION Growth
Non-
Growth
Parks & Recreation - INFLATED [1]
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 Improvements Growth Related CIP
Parks & Recreation Improvements Non-Growth Related CIP
Parks & Recreation Improvements Ellman Funded CIP
[1] CIP is inflated at a 3% rate, compounded annually.
ALL YEARS
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 50,000 50,000
0 0 0 0 0 0 0 0 1,541,108 1,541,108
0 0 0 0 0 0 0 33,614,960 0 33,614,960
0 0 0 0 0 0 0 0 300,000 300,000
0 0 0 0 0 0 0 958,212 0 958,212
0 0 0 0 0 0 0 0 135,583 135,583
0 0 0 0 0 0 0 34,573,173 2,026,690 36,599,863
$0 $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0 $0
B - 7
APPENDIX C
Assumptions and Supporting Worksheets
TOWN OF FOUNTAIN HILLS
NON-UTILITY DEVELOPMENT FEE STUDY
GENERAL INPUT SCHEDULE
ITEM 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 FY 2025-26 FY 2026-27
1.Escalation Factors
General Inflation 0.00%3.00%3.00%3.00%3.00%3.00%3.00%3.00%3.00%3.00%3.00%3.00%3.00%3.00%
Capital Outlay - Parks & Recreation 0.00%3.00%3.00%3.00%3.00%3.00%3.00%3.00%3.00%3.00%3.00%3.00%3.00%3.00%
Capital Outlay - Fire & Emergency Services 0.00%3.00%3.00%3.00%3.00%3.00%3.00%3.00%3.00%3.00%3.00%3.00%3.00%3.00%
Fee Index - Escalation for Inflation
Fire & Emergency 0.00%0.00%0.00%3.00%3.00%3.00%3.00%3.00%3.00%3.00%3.00%3.00%3.00%3.00%
Parks & Recreation 0.00%0.00%0.00%3.00%3.00%3.00%3.00%3.00%3.00%3.00%3.00%3.00%3.00%3.00%
Growth - Non-Residential 0.44%0.44%0.44%0.44%0.43%0.43%0.43%0.43%0.43%0.43%3.16%0.41%0.41%0.41%
Growth - Residential 0.16%0.20%0.38%0.42%0.38%0.41%3.93%1.98%2.29%2.55%1.98%2.34%1.87%1.68%
Bond / Loan Parameters
Length of Term / Repayment Period (years)20 20 20 20 20 20 20 20 20 20 20 20 20 20
Annual Interest Rate 5.00%5.00%5.00%5.00%5.00%5.00%5.00%5.00%5.00%5.00%5.00%5.00%5.00%5.00%
Issuance Costs 1.0%1.0%1.0%1.0%1.0%1.0%1.0%1.0%1.0%1.0%1.0%1.0%1.0%1.0%
Fiscal Year Month of Issue (1=Jul)1 1 1 1 1 1 1 1 1 1 1 1 1 1
Debt Service Reserve Deposit Factor 0.91 0.91 0.91 0.91 0.91 0.91 0.91 0.91 0.91 0.91 0.91 0.91 0.91 0.91
C - 1
TOWN OF FOUNTAIN HILLS
NON-UTILITY DEVELOPMENT FEE STUDY
GENERAL INPUT SCHEDULE
ITEM
1.Escalation Factors
General Inflation
Capital Outlay - Parks & Recreation
Capital Outlay - Fire & Emergency Services
Fee Index - Escalation for Inflation
Fire & Emergency
Parks & Recreation
Growth - Non-Residential
Growth - Residential
Bond / Loan Parameters
Length of Term / Repayment Period (years)
Annual Interest Rate
Issuance Costs
Fiscal Year Month of Issue (1=Jul)
Debt Service Reserve Deposit Factor
FY 2027-28 FY 2028-29 FY 2029-30 FY 2030-31 FY 2031-32 FY 2032-33 FY 2033-34 FY 2034-35
3.00%3.00%3.00%3.00%3.00%3.00%3.00%3.00%
3.00%3.00%3.00%3.00%3.00%3.00%3.00%3.00%
3.00%3.00%3.00%3.00%3.00%3.00%3.00%3.00%
3.00%3.00%3.00%3.00%3.00%3.00%3.00%3.00%
3.00%3.00%3.00%3.00%3.00%3.00%3.00%3.00%
0.41%0.40%0.40%0.40%0.40%0.40%17.45%0.34%
1.31%1.60%2.33%0.00%0.00%0.00%0.00%0.00%
20 20 20 20 20 20 20 20
5.00%5.00%5.00%5.00%5.00%5.00%5.00%5.00%
1.0%1.0%1.0%1.0%1.0%1.0%1.0%1.0%
1 1 1 1 1 1 1 1
0.91 0.91 0.91 0.91 0.91 0.91 0.91 0.91
C - 2
TOWN OF FOUNTAIN HILLS
NON-UTILITY DEVELOPMENT FEE STUDY
GENERAL INPUT SCHEDULE
2a.Building Data [1]
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 FY 2025-26 FY 2026-27
Single-Family Dwellings Units 8,293 8,318 8,343 8,373 8,403 8,438 8,938 9,188 9,488 9,838 10,113 10,438 10,713 10,968
Single-Family Dwellings, Permits 20 25 25 30 30 35 500 250 300 350 275 325 275 255
Multi-Family Dwellings (2.5 units each permit)4,840 4,841 4,866 4,891 4,911 4,931 4,956 4,981 5,006 5,026 5,046 5,076 5,091 5,101
Multi-Family Dwellings, Permits 0 0 10 10 8 8 10 10 10 8 8 12 6 4
Multi-Family Dwellings, New Units 1 1 25 25 20 20 25 25 25 20 20 30 15 10
Total Dwelling Units 13,133 13,159 13,209 13,264 13,314 13,369 13,894 14,169 14,494 14,864 15,159 15,514 15,804 16,069
Percentage Increase 0.16%0.20%0.38%0.42%0.38%0.41%3.93%1.98%2.29%2.55%1.98%2.34%1.87%1.68%
State Trust Land (included in SF Dwelling Units)0 0 0 0 0 0 150 150 200 200 175 175 100 80
2b.Square Feet
Avg.s.f./unit:1,930 Single Family, New Square Feet 38,600 48,250 48,250 57,900 57,900 67,550 965,000 482,500 579,000 675,500 530,750 627,250 530,750 492,150
Cumulative S.F. [2]16,005,490 16,053,740 16,101,990 16,159,890 16,217,790 16,285,340 17,250,340 17,732,840 18,311,840 18,987,340 19,518,090 20,145,340 20,676,090 21,168,240
Avg.s.f./unit:1,002 Multi-Family, New Square Feet 1,002 1,002 25,050 25,050 20,040 20,040 25,050 25,050 25,050 20,040 20,040 30,060 15,030 10,020
Cumulative S.F. [2]4,849,680 4,850,682 4,875,732 4,900,782 4,920,822 4,940,862 4,965,912 4,990,962 5,016,012 5,036,052 5,056,092 5,086,152 5,101,182 5,111,202
Industrial Square Feet 313,274 313,766 314,259 314,751 315,243 315,735 316,227 316,719 317,211 317,703 318,196 318,688 319,180 319,672
New Square Feet [3]492 492 492 492 492 492 492 492 492 492 492 492 492 492
Commercial / Lodging Square Feet 2,323,554 2,334,673 2,345,791 2,356,910 2,368,028 2,379,147 2,390,266 2,401,384 2,412,503 2,423,621 2,509,740 2,520,858 2,531,977 2,543,096
New Square Feet [4]11,119 11,119 11,119 11,119 11,119 11,119 11,119 11,119 11,119 11,119 86,119 11,119 11,119 11,119
Subtotal 2,636,828 2,648,439 2,660,050 2,671,661 2,683,271 2,694,882 2,706,493 2,718,103 2,729,714 2,741,325 2,827,935 2,839,546 2,851,157 2,862,768
Total New Square Feet 11,611 11,611 11,611 11,611 11,611 11,611 11,611 11,611 11,611 11,611 86,611 11,611 11,611 11,611
0.4%0.4%0.4%0.4%0.4%0.4%0.4%0.4%0.4%0.4%3.2%0.4%0.4%0.4%
Total Residential SF 20,855,170 20,904,422 20,977,722 21,060,672 21,138,612 21,226,202 22,216,252 22,723,802 23,327,852 24,023,392 24,574,182 25,231,492 25,777,272 26,279,442
Total Residential and Commercial SF 23,491,998 23,552,861 23,637,772 23,732,333 23,821,883 23,921,084 24,922,745 25,441,905 26,057,566 26,764,717 27,402,117 28,071,038 28,628,429 29,142,210
Residential Percentage 88.8%88.8%88.7%88.7%88.7%88.7%89.1%89.3%89.5%89.8%89.7%89.9%90.0%90.2%
Commercial Percentage 11.2%11.2%11.3%11.3%11.3%11.3%10.9%10.7%10.5%10.2%10.3%10.1%10.0%9.8%
[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.
C - 3
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 2027-28 FY 2028-29 FY 2029-30 FY 2030-31 FY 2031-32 FY 2032-33 FY 2033-34 FY 2034-35
11,168 11,418 11,793 11,793 11,793 11,793 11,793 11,793
200 250 375 0 0 0 0 0
5,111 5,121 5,131 5,131 5,131 5,131 5,131 5,131
4 4 4 0 0 0 0 0
10 10 10 0 0 0 0 0
16,279 16,539 16,924 16,924 16,924 16,924 16,924 16,924
1.31%1.60%2.33%0.00%0.00%0.00%0.00%0.00%
50 25 25 0 0 0 0
386,000 482,500 723,750 0 0 0 0 0
21,554,240 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 10,020 0 0 0 0 0
5,121,222 5,131,242 5,141,262 5,141,262 5,141,262 5,141,262 5,141,262 5,141,262
320,164 320,656 321,148 321,641 322,133 322,625 323,117 323,609
492 492 492 492 492 492 492 492
2,554,214 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 11,119 511,119 11,119
2,874,378 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 11,611 511,611 11,611
0.4%0.4%0.4%0.4%0.4%0.4%17.4%0.3%
26,675,462 27,167,982 27,901,752 27,901,752 27,901,752 27,901,752 27,901,752 27,901,752
29,549,840 30,053,971 30,799,352 30,810,962 30,822,573 30,834,184 31,345,794 31,357,405
90.3%90.4%90.6%90.6%90.5%90.5%89.0%89.0%
9.7%9.6%9.4%9.4%9.5%9.5%11.0%11.0%
C - 4
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
C - 5