For two decades Fountain Hills stood as a county island in the desert tucked away in the McDowell foothills in the northeast corner of the Valley.

It was set apart by the “World’s Tallest Fountain” spouting out of a 20-acre lake and there was a lot of potential for the community.

But under county jurisdiction and with only a handful of residents, there was little direction.

Political bickering within small special districts such as the Road and Sanitary district divided the community.

Eventually, a group of citizens led by retired East Coast businessman, John Cutillo decided the community could do better if it came together as an incorporated municipality.

During the 1980s a proposal to incorporate came before voters on three occasions; the first time in 1983, when it was defeated by a 768-651 margin.

It was back again in 1988 when it again went down to defeat by a margin of just 65 votes, 1599 to 1,534.

Encouraged by the narrow margin, Cutillo and his committee came together for a third try in 1989. Election Day was Dec. 5, and 62 percent of eligible voters turned out and the final vote was 2,100 in favor to 1,662 opposed.

Over the lengthy debate over incorporation there were three factions that developed – one favoring incorporation and self-government, a second wanting to remain an unincorporated area under the jurisdiction of Maricopa County and the third advocated annexation by the City of Scottsdale.

The incorporation option offered solid financial arguments, and the City of Scottsdale proved less than enthusiastic about annexation.

Early in 1990 an interim Town Council was appointed by Maricopa County Supervisor Jim Bruner.

The appointed members of the council included Cutillo, Harry Barber, Joe Bill, Charlie Fox, Dick Haugen, Marti Lemieux and Mike Minarsich. The group included one each of the Scottsdale annexation supporters and a “status quo” advocate.

With the assistance of the county the town organized its own government to officially begin with fiscal year 1990-91 on July 1.

Dozens of citizen committees scrambled to pull together the pieces for a town government. Legal services were obtained and an interim town manager was hired, there was a need to establish codes for civil matters, building and zoning issues. A Parks and Recreation Commission came together to organize what had been piecemeal activities.

Cassie Hansen, today an elected member of the Town Council, was back then hired as Town Clerk and the first town employee. She recalls a team atmosphere.

“In the blink of an eye, we…progressed from my dining room table and home computer to a two- story building and modern technology that brings council meetings into citizens’ homes,” Hansen said.

“Starting the town with a handful of employees, a dedicated council and a brigade of citizen volunteers resulted in the ‘family’ atmosphere that permeated the early culture in Town Hall.

“From Mayor Cutillo washing his office windows and helping to answer the telephones, (Town Manager) Paul Nordin’s regular outreach to update councilmembers or even the clerk’s personal delivery of council packets…it was just a different time.

“Those involved were all about establishing a town…now we’re about sustaining a town.”

As of July 1, 1990 a new elected Town Council took over with a $2.6 million budget for the first year of operation.

The first elected council included Cutillo, Fox, Minarsich, Frank Clark, Wally Hudson, Dr. Bill O’Brien and Peg Tibbetts. Cutillo was appointed mayor by his council colleagues.

Taking off

It was a convergence of events shortly after incorporation that led to Fountain Hills exploding as one of the fastest growing communities in the country during the 1990s.

The 1990 U.S. Census showed 10,030 citizens in the new community. By 2000 that had more than doubled to 20,235.

Gauging the mood of the voters as positive, the Fountain Hills School District proposed a bond question for the ballot to fund construction of a high school.

That bond was approved and the school opened in the fall of 1992.

The new town had absorbed the Road Districts and early on voters approved a bond to pave miles of unimproved streets in town.

Mayo Clinic had built a new facility on a site in Scottsdale just over the hill from Fountain Hills, and as it began to grow many of its employees found Fountain Hills an attractive place to live.

Others found the community irresistible as well.

A couple relocating to Arizona from the New York area after the husband’s retirement from a police agency searched all over state before coming over the hill on Shea.

That couple was John and Linda Kavanagh, a future council member and mayor and State Representative and Senator.

“(We) knew that we had found our new home when we entered Fountain Hills,” Mayor Linda Kavanagh said.

“The two features that captured our attention were the town’s magnificent views, especially of Four Peaks with the cascading fountain in the foreground, and its hills.

“Almost everywhere else we looked, the land was flat and lacking character.

“But as its name proclaimed, Fountain Hills possessed hills and mountainous terrain, which gives it great topographical character and complexity. In addition, Fountain Hills’ isolation fosters the small-town atmosphere that makes it such a great place to live and raise a family.”

Growing pains

The growth spurt after incorporation brought many new challenges for the town and its leadership.

Many residents, new and old, began to see the community as a natural treasure to be preserved and protected as much as possible from the spoils of growth.

During that first decade the master developer, MCO Properties, was still very much a strong player in the community and was ready to welcome those wanting a home here.

Balancing the development interests with those interested in preservation became a real challenge for community leadership.

Working with the developer the town has been able to obtain land and establish a preserve of nearly 1,000 acres within the McDowell Mountains to the west.

Providing public safety services also became an issue that divided the community.

Fire and emergency medical services were provided under the authority of a Fire District, and tensions between town officials and district officials resulted in the town taking over fire and EMS services in 2001, effectively abolishing the Fire District.

After incorporation the town established a Marshal’s Department to handle mostly code needs but to eventually become a police agency for the town.

At about the same time the Fire District was disbanded the Marshal’s Department was abolished in favor of full contracted law enforcement with the Maricopa County Sheriff’s Office, which had been handling major law enforcement issues for the town.

With the onset of the “Great Recession” in 2008 the already declining construction industry in Fountain Hills slowed to a trickle and town revenues were also drying up.

From the years with the Marshal’s Department -- when the town had more than 100 employees -- staff has been cut by more than half to around 50 today.

While recovery from the recession has been slow, things are starting to look better. Officials have had to learn new ways to do the business of the town.

Looking forward

Current Town Manager Ken Buchanan was at one time the city manager for Payson, a “neighbor” to the north.

“I remember back in the early 1990s, then Town Manager Paul Nordin (Fountain Hills’ first manager), showing me the site where Safeway was going to be located,” Buchanan said. “All I saw was rolling hills and some dirt streets.

“Fountain Hills has progressed significantly from that point in time. I still see significant progress ahead.”

Buchanan notes that as Fountain Hills is getting older so is its population. He notes that presents challenges to government in public safety response needs, public transportation, social services and leisure pursuits.

In recent years Fountain Hills has begun to focus on an economic development plan to enhance the community.

“The task for everyone is to put the plan in motion and change the perception of Fountain Hills to ‘business friendly’ and a ‘town of opportunity,’” Buchanan said. “There is increasing exterior competition with Scottsdale, Mesa and Tempe developing and providing shopping experiences that are closer to Fountain Hills than ever before.”

Mayor Kavanagh believes Fountain Hills’ future lies with its “hometown” character.

“That’s why most of us moved here in the first place, to live in a small, friendly town, away from the congestion of the bigger cities,” Kavanagh said.

“With the transformation of our Avenue median into a beautiful park, I envision the completion of our downtown into a vibrant, unique town square.

“I look forward to welcoming new residents with the completion of Adero Canyon, the (former State Trust Land) property, and all other construction projects, which will fortify and enhance our business community.

“I want us to always maintain our signature Fountain, our beautiful parks, and the good quality of life that all our residents have come to enjoy.”