Fountain Hills council approves land-use assumptions, advances impact-fee report after split vote

The Fountain Hills Town Council voted 4-3 to approve the town's Land Use Assumptions and Infrastructure Improvements Plan report, advancing proposed development impact fees to the next steps of the adoption process.

The vote lets staff move the report forward to the required public hearings and the January meeting when council may adopt or reduce the recommended fees. Director Scholtenger, the staff presenter, said, "Option 1. This is the 1 that staff has recommended. Approve the reports tonight." That recommendation carried on a 4-3 split.

The report updates growth assumptions and a multi-year infrastructure plan that underlies proposed development impact fees. Staff and the town's consultant explained that using a larger "peak population" in the analysis spreads projected growth across more residents and thereby lowers per-unit fees; staff recommended keeping the consultant's standard practice. Director Scholtenger said staff did not recommend changing that element because, he said, reducing the assumed population would actually increase a single-family-permit fee by about $747.

Under the report presented to council, proposed fees range substantially by development type. For single-family detached housing, the draft report shows a proposed fee in the neighborhood of $12,314 per dwelling (the report's proposed figure). Staff noted rising construction and engineering cost estimates were a driver of increases from earlier studies.

Council members debated alternatives during the meeting. Some council members urged keeping the full set of fees now so the town retains the ability to phase or reduce them later; others asked staff to return with options that would lower fees for smaller single-family homes by scaling fees to dwelling square footage (an approach used by other Arizona cities, staff said). Council discussion also referenced the Shea Boulevard widening and how longer reimbursement periods or other phasing could reduce the street-related portion of the fee.

The council's approval authorizes staff to proceed with the next administrative steps: revise the report if directed, publish the report for the required public notice, hold a public hearing on the fees and return to council in January for fee adoption. If council adopts fees, state procedures allow an earliest effective date in April, staff said.

Votes at a glance: approve report (Option 1) ' outcome: approved ' tally: 4 yes, 3 no.

The report and the fee schedules will be available ahead of the January adoption hearing; staff said they will also return with more granular fee options if council requests them.