There are approximately 450 items included on the Town of Fountain Hills Comprehensive Fee Schedule that is attached to the budget each year. Staff has asked the Town Council to approve a comprehensive user fee study to evaluate whether those items are appropriate and in line with return.

The council voted 5-2 on March 5 to contract with Willdan Financial Services to perform such a study at a cost of $36,865. Vice Mayor Art Tolis and Councilman David Spelich cast the dissenting votes.

“My concern is that this is a lot of money,” Spelich said. “Could we approach this with each director having staff research [their fees]?

“I’d like to see if this can be done in house.”

He added that he has faith in department directors to tell the council what the fees should be.

Town Manager Grady Miller said the fees are reviewed each year and adopted with the budget. He said those are normally incremental increases when they occur, but Miller said the fees do not necessarily cover costs. He said the study would allow them to determine that costs for the services being provided are covered by the fee.

“Once we get this methodology it will be easier for us to adjust in the future,” Miller said. “I understand your concern, but we have a very small staff and it could take months.”

Miller also said he does not know that staff is capable of evaluating some things like overhead costs.

“This is a very effective way to make sure the fees are defensible,” Miller said.

Councilman Alan Magazine supported the study.

“I believe that the $36,000 can be recovered within a couple of years and it will be a plus for us down the road,” Magazine said.

Tolis asked how much the town is collecting in fees. He was told the exact amount was not available at the meeting but staff estimated it to be about 10 percent of the General Fund budget, which would make it in the neighborhood of $1 million.

Tolis said some of the fees are what the market will bear, and he believes staff can quickly evaluate what others charge for similar services.

Councilman Mike Scharnow said he agrees the cost seems somewhat high.

“I think it is a good idea to have an independent party look at this and get their advice,” Scharnow added.

Councilman Dennis Brown compared it to the cost of a development fee study, which is legally mandated before impact fees can be set. Staff said the current development fee study cost about $50,000.

“This sounds reasonable,” Brown said.

Mayor Ginny Dickey supported the study saying the town is looking at all options for revenues.

“This [information] will help us with our decisions,” Dickey said. “I’m comfortable with this type of study.”

Miller said the work would not be complete in time to incorporate into the budget at the beginning of the next fiscal year. However, he said it is not unusual for councils to make fee adjustments in the middle of the budget cycle and he believes it would be reasonable to target December or January for possible changes.