Over the course of a couple of meetings the Fountain Hills Town Council has been briefed on the status of development fees and their use related to town finances.
Development fees are charged to homebuilders and developers for each new unit constructed. The objective is a funding source to offset costs of providing necessary public services to new development. For the fiscal year that ended June 2024, fees for an individual single-family residence were $3,973, according to the audit report presented to the council at its Jan. 21 session. The per unit fees for multi-family construction were somewhat less at $2,537. There are also fees for non-residential construction based on a square foot calculation.
The Town of Fountain Hills collects development fees for three service categories including fire and emergency services, streets and parks and recreation. During the 2024 fiscal year the town collected a total of $445,439 including interest earnings. That was added to a balance at the beginning of the year totaling about $2.4 million. During the year, the town spent $245,884 on the fire and emergency services category for dispatch and telecommunications equipment. Development fees were used for the expansion of the skateboard facilities at Desert Vista Park in the amount of $275,000. There were no street projects during the year that qualified for the use of development fees. At the end of the fiscal year on June 30, 2024, the development fee fund balance stood at $2,329,679.
