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Council holds public hearing on draft impact-fee plan as proposed fees rise sharply
Summary
The town held a public hearing on a draft land-use assumptions and infrastructure improvement plan that would raise development impact fees substantially because of higher construction estimates and a proposed new fire facilities component and Shea Boulevard widening costs. Council asked staff to offer options before a final October decision.
Fountain Hills — Council held a public hearing Wednesday on proposed updates to the town’s land-use assumptions and infrastructure improvements plan, a statutory step before new development impact fees can be adopted.
Consultants told the council that higher construction costs and the addition of a fire-facilities component account for most of the increase in the draft fees. The plan also allocates a significant share of costs to a multi-phase Shea Boulevard widening project; the estimated construction cost for the roadway work has increased substantially since the town last updated its fee schedule.
Ben Griffin of TischlerBise, the consultant on the project, summarized the draft assumptions: a 2025 baseline population that includes seasonal housing use, an estimate of roughly 1,300 new housing units over the next decade, and a plan-based allocation of the Shea Boulevard widening to new development. He said the firm used local travel and housing data where available.
Several council members and residents questioned the population baseline and the resulting per-unit fees. Vice Mayor Skillicorn and councilors asked whether the draft used “peak” (including seasonal residents) or year-round population; staff and consultants said they used a peak population approach to reflect seasonal residents who use parks and emergency services, but the number can be adjusted if council prefers.
The proposed fees in the draft would raise the single-family per-unit fee notably (the draft packet showed a several-fold increase for some categories compared with the existing schedule). Council members asked for alternatives that would soften the near-term impact on builders, such as adopting a lower percentage of the proposed fee schedule, delaying application of the full Shea Boulevard share, or removing the new fire-facilities component and revisiting that component later.
No vote was taken. Staff and the consultant were asked to return with one or more alternate fee scenarios for council review before the Oct. 21 adoption hearing so the council can weigh trade-offs among pace of growth, preserving level of service and affordability.
Why it matters: Development impact fees determine how much new construction pays toward roads, parks and fire services. A substantial increase affects builders, buyers and the town’s budget for key capital projects such as Shea Boulevard improvements and fire facilities.
