By Bob Burns | Fountain Hills Times
Fountain Hills Town Council has approved a consultant’s study that reflects an increase in development fees for single-family homes that is more than three times the current fee. The council will not consider adoption of the fee before December.
The current development fee for a single-family home is a total of $3,973. If the council eventually approves the recommended plan, the total cost would go to $12,314.
The town collects development fees for three categories of town services including fire, parks and recreation/streets. There are variances related to the type of structure being constructed ranging from single-family, multi-family, industrial, commercial, office and services and institutional. The commercial categories are based on square footage. Multi-family is based on the number of units being constructed.
Currently, for a single-family unit, the town collects $122 for the fire department, $1,916 for parks and recreation and $1,935 for streets to get a total of $3,973. The proposal calls for $1,303 for fire, $4,014 for parks and recreation and $6,997 for streets to reach $12,314 total.
Development fees are strictly regulated by state statue as to how they can be used. The funds are not permitted for routine maintenance and repairs or general capital improvement projects. The town must show that any project where the funds are used to meet requirements of increased population.
The law requires a detailed Land Use Assumptions and Infrastructure Improvements Plan with a 10-year horizon. The study must be prepared by a qualified consultant, and the town hired the firm of TischlerBise early this year to prepare the report now being presented.
In the past, the town used development fees for construction of the Adero Canyon Trailhead as well as Panorama Park. Also, the town’s portion of the widening of Shea Boulevard is slated for development fees, as well as the planned Pleasantville Park.
Town Finance Director Paul Soldinger said staff is recommending the fee proposal presented by TischlerBise, however, he prepared additional options that would reduce the overall fees. One of those was to remove the fee for fire facilities. Another is to spread the costs related to Shea Boulevard widening out from 10 to 15 years. A third option would be to combine the two options for additional reductions.
Councilmember Gayle Earle made a motion for the council to adopt the study with directions to proceed with the fees presented.
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