Extracted text (via pymupdf)
2303 characters
ITEM 3.b. TOWN OF FOUNTAIN HILLS STAFF REPORT Meeting Date: 2/24/2026 Meeting Type: Town Council Work Session (Budget Retreat) AMENDED 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: Road Paving — Ongoing Revenues and Future Funding Options Staff Summary (background) Finance and Public Works staff will present current financial information regarding road paving efforts in the Town. This discussion will update the Council on the projected fund balance in the Streets Fund for FY2027, ongoing revenues and challenges continuing to maintain the current levels of spending, and future funding options. Future funding options include issuing bonds: • General Obligation bonds, which are generally the lowest cost of borrowing: o Voter approval required o Establishes a new secondary property tax on residents annually until debt is repaid • Pledged Revenue bonds: o Voter approval not required o Council could pledge/restrict future annual revenues until debt is repaid; or o Council could raise sales taxes to pay the debt annually Staff will provide debt scenarios of $11 million (over 10 years) and $22 million (over 20 years), which are based on recent estimates to complete reconstruction projects for Fountain Hills and/or Palisades Blvd in the Town (about $11 million to reconstruct each of these roads), which are two major arterial roads. The Council could also choose a debt scenario to apply to a selection of roads selected by the BOSS data compiled by Roadway Asset Services. Regardless, if the Town Council determines it would like to consider issuing bonds in the near future, staff recommends that the bond measures are specific. 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: Budget Reference: Funding Source: ATTACHMENTS 1. FY27 Road Paving Funding Options - 2.24.2026 2. Town of Fountain Hills Bond Election Slides Feb 2026(700722730.1)