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ITEM 7.a. TOWN OF FOUNTAIN HILLS STAFF REPORT Meeting Date: 3/17/2026 Meeting Type: Town Council Regular Meeting 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: Short-Term Rental Permitting and Compliance Efforts Staff Summary (background) Finance staff will provide an update on Town Short-Term Rental (STR) Permitting and Compliance Efforts. Arizona law does not allow the Town to prohibit STRs operating within Town limits, but it does allow a permitting and compliance process. The Town Council adopted Ordinance 22-09 in November 2022, and since then, staff have implemented automated processes for identifying unpermitted STRs, sending warning letters to noncompliant operators, and allowing residents to log STR complaints with the Town. As of March 10, 2026, there are 165 permitted STRs operating in Fountain Hills, and 45 unpermitted STRs. Staff will continue compliance efforts, and impose civil penalties, when applicable. 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 Suggested Motion N/A FISCAL IMPACT Fiscal Impact: N/A Budget Reference: N/A Funding Source: N/A ATTACHMENTS 1. STR Compliance 3.17.2026