Staff Report

Town of Fountain Hills — Town Council (2026-03-24)

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ITEM 3.a. 
 
TOWN OF FOUNTAIN HILLS 
 
STAFF REPORT 
 
Meeting Date: 
3/24/2026 
Meeting Type: 
Town Council Work Session 
Submitting Department: 
Administration / Finance 
Prepared by: 
Paul Soldinger, Chief Financial Officer 
Staff Contact Information: Phone: 480-816-5160 
Email: psoldinger@fountainhillsaz.gov 
 
Request to Town Council Regular Meeting (Agenda Language) 
PRESENTATION: FY2027 Proposed Capital Improvement Plan 
 
Staff Summary (background) 
A critical component of the Town's annual budget process is its Capital Improvement Plan 
(CIP).  The Public Works and Community Services Department will present the Town's 
FY2027 Proposed CIP seeking Council direction.  Specifically, the Proposed CIP includes 20 
capital improvements for FY2027 (some are carryovers from FY2026), including 10 park 
amenity improvements, and 10 public works projects such as stormwater and facilities 
improvements. The total budget across all 20 projects is about $9.3 million. 
 
Town staff are proposing a CIP that has identified sufficient funding sources across the 
following funds: 
• $4.9 million from the Capital Projects Fund (FY27 projected starting fund balance of 
about $9 million) 
• $1.6 million from the Parks Development Impact Fee Fund (this will spend down 
most of this fund balance) 
• $1.4 million from the Facilities Reserve Fund ($1 million from Lake Liner Savings of 
about $6.7 million) 
• $1.1 million of projected grant revenue 
• $300,000 from the Streets Development Impact Fee Fund (for the completion of the 
Shea Widening Project) 
 
There are also 4 additional projects not planned to start in FY2027, but planned for future 
years, and still included in the CIP next 5-year outlook. The Public Works and Community 
Services Director will present each proposed project and seek feedback from the Council. 
 Specifically, Town staff seeks the following direction for each planned project for FY2027: 
 
• Green Light Project (Fully authorized to complete project, related bidding and 
contracts, within budget and scope) 
• Yellow Light Project (Staff must take additional steps to provide additional 
information before the Council provides final authorization to complete the project, 
related bidding and contracts) 
• Red Light Project (Council removes the project from the CIP plan)

Staff will take direction and implement changes to the FY2027 CIP for integration within the 
budget. Therefore, the Proposed Budget Work Session in April 2026 will categorize the 
projects in accordance with Council direction provided during this Work Session. 
 
Related Ordinance, Policy or Guiding Principle 
N/A 
 
Risk Analysis 
N/A 
 
Recommendation(s) by Board(s) or Commission(s) 
N/A 
 
Staff Recommendation(s) 
N/A - Seeking Council Direction on All Proposed Projects 
 
Suggested Motion 
N/A 
 
FISCAL IMPACT 
Fiscal Impact:  
Budget Reference:  
Funding Source:  
 
ATTACHMENTS 
1. 
FY2027 Proposed Capital Improvement Plan - 3.24.2026