Fountain Hills council approves town-led application for $2.5 million Dark Sky exhibit

Fountain Hills — The Fountain Hills Town Council voted unanimously to authorize the town to apply for $2,500,000 in congressionally directed spending on behalf of the International Dark Sky Discovery Center and to serve as the grant administrator if the project is selected.

The council’s April 14 vote directs staff to complete and submit the request that would seek federal funds to purchase and install a science and STEM-exhibit for the proposed discovery center. The council approved the motion on a 7-0 roll call after staff described deadlines and administrative requirements.

Council members and staff stressed this vote authorizes only the application; a later formal acceptance would be required if the funding is included in an appropriations bill. Economic development director Amanda Jacobs told the council, “The request is for $2,500,000. It’s to outfit a scientific exhibit, for example, for STEM education.” Town Manager Rachel Goodwin and finance staff explained the application process would be reimbursement-based and would require the town to act as the recipient and draw down federal funds if the project is awarded.

Why it matters: The proposal would channel federal money through the town to a local nonprofit project that promotes Fountain Hills’ “dark sky” tourism brand. Council members said the grant could advance tourism and education, but they repeatedly raised questions about staff time, fiscal controls and audit risk.

What council approved and what happens next - Council directed staff to prepare and submit the congressionally directed spending request by the April 25 deadline and to proceed with the town as the applicant and potential grant recipient. Staff noted the senators’ offices strongly prefer, or require, a government sponsor rather than a nonprofit as the applicant. - If the request is included in an appropriations bill and ultimately awarded, the town would return to council with the grant documents and an interlocal/subrecipient agreement outlining responsibilities, before accepting any federal funds.

Staff cautioned about up-front duties and audit exposure. Jacobs estimated that if the town proceeds through award and administration, processing the federal grant could require roughly 100 staff hours of grant administration work; finance staff noted the town would likely need to increase a special revenue fund in anticipation of drawdowns and to make short-term reimbursements to the nonprofit. The staff presentation noted federal reimbursement rules, the need for documentation and the potential requirement for a federal single audit if federal spending thresholds are met.

Concerns voiced during debate Councilmember McMahon pressed staff on legal agreements and the town’s liability: “Is there going to be a legal agreement between Dark Sky and the town outlining everybody’s responsibilities, releasing liability, etc.?” Jacobs responded the town would require a formal agreement if awarded and that staff would return to council for approval of any contract or grant acceptance. Finance staff added that direct administrative costs incurred during the award period can be requested as reimbursable direct costs in the grant application, but pre-award preparation time typically is not reimbursable.

Councilman Watts and others sought assurance that the town would review the full grant terms before committing to administration. Staff repeatedly confirmed the current motion authorizes only the application; any actual acceptance of funds would require additional council approvals and legal review.

What the town would administer and financial safeguards Staff said the Dark Sky Discovery Center would be a subrecipient if the grant is awarded, and the town would be the grantee responsible for compliance, draws and monitoring. Staff noted the town could request reimbursement for eligible internal administrative time and for costs such as required audits; they described federal audit thresholds and the standard reimbursement model for these awards.

Next steps and timing The application was filed for submission to the senators’ offices; if the request is added to a congressional appropriations bill and subsequently awarded, the town anticipates a separate grant process and council approvals in mid to late 2026. Councilmembers asked staff to return with final grant language and proposed agreements before the town signs any award.

Ending note Council members expressed strong interest in the project’s potential economic benefits while acknowledging administrative and fiscal responsibilities if the town acts as grant recipient. The council approved the motion to submit the request, 7-0.