Resolution No. 2026-01

RESOLUTION NO. 2026-01 
A RESOLUTION OF THE MAYOR AND COUNCIL OF THE TOWN 
OF FOUNTAIN HILLS, ARIZONA, ADOPTING DEVELOPMENT 
IMPACT FEES IN COMPLIANCE WITH STATE LAW 
RECITALS: 
WHEREAS, Arizona’s enabling legislation for development impact fees, ARIZ. REV. 
STAT. § 9-463.05 (the “Development Impact Fee Statute”) requires the Town to 
produce three integrated documents prior to assessing development impact fees: (i) 
Land Use Assumptions (“LUA”), (ii) an Infrastructure Improvements Plan (“IIP”), and 
(iii) a Development Impact Fee Report based upon the LUA/IIP. The Development Impact 
Fee Statute also requires a two-phase adoption process, whereby the LUA and IIP are 
reviewed, refined, and adopted before the Development Impact Fee Report is addressed; 
and
WHEREAS, in accordance with the Development Impact Fee Statute, (i) the LUA and IIP were 
released to the public, (ii) the Town Council held a public hearing on September 16, 2025 
to receive public comment on the LUA/IIP, and (iii) the Town Council approved the LUA/IIP on 
October 21, 2025, giving notice of its intent to assess development impact fees; and 
WHEREAS, in accordance with the Development Impact Fee Statute, the Town Council held a 
public hearing on December 16, 2025 on the document entitled Development Fee 
Report, 
dated 
December 
1, 
2025, 
prepared 
by 
TischlerBise; and 
WHEREAS, the Town Council desires to conclude the second phase of the development 
impact fee adoption process by approving the Development Impact Fee Report. 
NOW THEREFORE BE IT RESOLVED BY THE MAYOR AND TOWN COUNCIL OF FOUNTAIN 
HILLS, ARIZONA, as follows: 
SECTION 1. The recitals above are hereby incorporated as if fully set forth herein. 
SECTION 2. The Development Impact Fee Report is hereby adopted in substantially the form 
and substance of Exhibit A, attached hereto and incorporated herein by reference. 
SECTION 3. The Development Impact Fees shown in the staff proposed fee schedule contained 
in Figure 5 on page 8 of the Development Impact Fee Report are hereby adopted.
SECTION 4. In accordance with the Development Impact Fee Statute, the development 
impact fees set 
forth 
in 
the 
Development 
Impact 
Fee 
Report 
shall 
not 
be 
effective until 75 days after the date of this Resolution. 
SECTION 5. The Mayor, the Town Manager, the Town Clerk, and the Town Attorney are hereby 
authorized and directed to take all steps necessary to carry out the purpose and intent of this 
Resolution.

RESOLUTION 2026-01 
PAGE 2 
PASSED AND ADOPTED by the Mayor and Council of the Town of Fountain Hills, 
Maricopa County, Arizona, this 20th day of January 2026. 
FOR THE TOWN OF FOUNTAIN HILLS: 
___________________________________  
Mayor  
REVIEWED BY:  
___________________________________
Town Manager 
ATTESTED TO: 
_________________________________
Town Clerk 
APPROVED 
T
AS O FORM: 
_________________________________
Town Attorney

RESOLUTION 2026-01 
PAGE 3 
EXHIBIT A 
TO 
RESOLUTION NO. 2026-01 
[Final Development Impact Fee Report] 
See following pages.

Land Use Assumptions, 
Infrastructure Improvements Plan, 
and Development Fee Report 
Prepared for: 
Fountain Hills, Arizona
January 20, 2026 
4701 Sangamore Road 
Suite S240 
Bethesda, MD 20816 
301.320.6900 
www.TischlerBise.com

Land Use Assumptions, Infrastructure Improvements Plan, and Development Fee Report 
Fountain Hills, Arizona 
[PAGE INTENTIONALLY LEFT BLANK]

Land Use Assumptions, Infrastructure Improvements Plan, and Development Fee Report 
Fountain Hills, Arizona 
i 
TABLE OF CONTENTS 
EXECUTIVE SUMMARY ................................................................................................................................ 1 
ARIZONA DEVELOPMENT FEE ENABLING LEGISLATION ........................................................................ 1 
Necessary Public Services ......................................................................................................................................................... 1
Infrastructure Improvements Plan ....................................................................................................................................... 2
Qualified Professionals .............................................................................................................................................................. 2
Conceptual Development Fee Calculation ......................................................................................................................... 3
Evaluation of Credits/Offsets .................................................................................................................................................. 3
INTRODUCTION TO DEVELOPMENT FEES ............................................................................................... 3 
REQUIRED FINDINGS .............................................................................................................................. 4 
DEVELOPMENT FEE REPORT ...................................................................................................................... 5 
DEVELOPMENT FEE COMPONENTS ......................................................................................................... 6 
CURRENT DEVELOPMENT FEES .............................................................................................................. 6 
PROPOSED DEVELOPMENT FEES ............................................................................................................ 7 
DIFFERENCE BETWEEN PROPOSED AND CURRENT DEVELOPMENT FEES ............................................. 7 
STAFF PROPOSED DEVELOPMENT FEES ................................................................................................. 8 
DIFFERENCE BETWEEN STAFF PROPOSED AND CURRENT DEVELOPMENT FEES .................................. 8 
LAND USE ASSUMPTIONS ............................................................................................................................ 9 
SUMMARY OF GROWTH INDICATORS ..................................................................................................... 9 
RESIDENTIAL DEVELOPMENT .............................................................................................................. 11 
Recent Residential Construction ......................................................................................................................................... 11
Occupancy Factors ..................................................................................................................................................................... 12
Residential Estimates ............................................................................................................................................................... 13
Seasonal Population .................................................................................................................................................................. 13
Residential Projections ............................................................................................................................................................ 13
NONRESIDENTIAL DEVELOPMENT ....................................................................................................... 14 
Nonresidential Demand Factors .......................................................................................................................................... 14
Nonresidential Estimates ........................................................................................................................................................ 14
Nonresidential Projections ..................................................................................................................................................... 15
DEVELOPMENT PROJECTIONS ............................................................................................................. 16 
FIRE FACILITIES ....................................................................................................................................... 17 
SERVICE AREA ..................................................................................................................................... 17 
PROPORTIONATE SHARE ..................................................................................................................... 17 
RATIO OF SERVICE UNIT TO DEVELOPMENT UNIT ............................................................................. 19 
ANALYSIS OF CAPACITY, USAGE, AND COSTS OF EXISTING PUBLIC SERVICES .................................... 19 
Fire Facilities – Incremental Expansion ........................................................................................................................... 20
Fire Apparatus – Incremental Expansion ........................................................................................................................ 21
Fire Equipment – Incremental Expansion ....................................................................................................................... 22
Development Fee Report – Plan-Based ............................................................................................................................. 23
PROJECTED DEMAND FOR SERVICES AND COSTS ................................................................................ 23 
Fire Facilities – Incremental Expansion ........................................................................................................................... 24
Fire Apparatus – Incremental Expansion ........................................................................................................................ 25
Fire Equipment – Incremental Expansion ....................................................................................................................... 26
FIRE FACILITIES DEVELOPMENT FEES ................................................................................................ 27 
Construction Sales Tax Credit/Offset ................................................................................................................................ 27
Fire Facilities Development Fees ......................................................................................................................................... 27

Land Use Assumptions, Infrastructure Improvements Plan, and Development Fee Report 
Fountain Hills, Arizona 
ii 
FIRE FACILITIES DEVELOPMENT FEE REVENUE .................................................................................. 28 
PARKS AND RECREATIONAL FACILITIES IIP ........................................................................................... 29 
SERVICE AREA ..................................................................................................................................... 29 
PROPORTIONATE SHARE ..................................................................................................................... 29 
RATIO OF SERVICE UNIT TO DEVELOPMENT UNIT ............................................................................. 30 
ANALYSIS OF CAPACITY, USAGE, AND COSTS OF EXISTING PUBLIC SERVICES .................................... 30 
Developed Park Land – Incremental Expansion ........................................................................................................... 31
Park Amenities – Incremental Expansion ........................................................................................................................ 32
Development Fee Report – Plan-Based ............................................................................................................................. 34
PROJECTED DEMAND FOR SERVICES AND COSTS ................................................................................ 34 
Developed Park Land – Incremental Expansion ........................................................................................................... 35
Park Amenities – Incremental Expansion ........................................................................................................................ 36
PARKS AND RECREATIONAL FACILITIES DEVELOPMENT FEES ........................................................... 37 
Construction Sales Tax Credit/Offset ................................................................................................................................ 37
Parks and Recreational Facilities Development Fees ................................................................................................. 37
PARKS AND RECREATIONAL FACILITIES DEVELOPMENT FEE REVENUE ............................................ 38 
STREET FACILITIES IIP ............................................................................................................................ 39 
SERVICE AREA ..................................................................................................................................... 39 
PROPORTIONATE SHARE ..................................................................................................................... 39 
RATIO OF SERVICE UNIT TO DEVELOPMENT UNIT ............................................................................. 40 
Residential Trip Generation Rates ...................................................................................................................................... 40
Nonresidential Trip Generation Rates .............................................................................................................................. 41
Trip Rate Adjustments ............................................................................................................................................................. 41
Commuter Trip Adjustment ................................................................................................................................................... 41
Adjustment for Pass-By Trips ............................................................................................................................................... 42
Average Weekday Vehicle Trips .......................................................................................................................................... 42
Trip Length Weighting Factor ............................................................................................................................................... 43
Local Vehicle Miles Traveled ................................................................................................................................................. 43
PROJECTED DEMAND FOR SERVICES AND COSTS ................................................................................ 43 
Calibrated Travel Demand Model ........................................................................................................................................ 45
ANALYSIS OF CAPACITY, USAGE, AND COSTS OF EXISTING PUBLIC SERVICES .................................... 46 
Street Improvements – Plan-Based .................................................................................................................................... 46
Development Fee Report – Plan-Based ............................................................................................................................. 47
STREET FACILITIES DEVELOPMENT FEES ........................................................................................... 48 
Construction Sales Tax Credit/Offset ................................................................................................................................ 48
Street Facilities Development Fees ..................................................................................................................................... 48
STREET FACILITIES DEVELOPMENT FEE REVENUE ............................................................................. 49 
APPENDIX A: FORECAST OF REVENUES OTHER THAN FEES ................................................................... 50 
REVENUE PROJECTIONS ....................................................................................................................... 50 
APPENDIX B: PROFESSIONAL SERVICES .................................................................................................. 51 
APPENDIX C: LAND USE DEFINITIONS .................................................................................................... 52 
RESIDENTIAL DEVELOPMENT .............................................................................................................. 52 
NONRESIDENTIAL DEVELOPMENT ....................................................................................................... 53

Land Use Assumptions, Infrastructure Improvements Plan, and Development Fee Report 
Fountain Hills, Arizona 
1 
EXECUTIVE SUMMARY 
The Town of Fountain Hills, Arizona, contracted with TischlerBise to document land use assumptions, 
prepare the Infrastructure Improvements Plan (hereinafter referred to as the “IIP”), and update 
development fees pursuant to Arizona Revised Statutes (“ARS”) § 9-463.05 (hereafter referred to as the 
“Enabling Legislation”). Municipalities in Arizona may assess development fees to offset infrastructure 
costs to a municipality for necessary public services. The development fees must be based on an 
Infrastructure Improvements Plan and Land Use Assumptions. The IIP for each type of infrastructure is in 
the middle section of this document. The proposed development fees are displayed in the Development 
Fee Report in the next section.  
Development fees are one-time payments used to construct system improvements needed to 
accommodate new development. The fee represents future development’s proportionate share of 
infrastructure costs. Development fees may be used for infrastructure improvements or debt service for 
growth related infrastructure. In contrast to general taxes, development fees may not be used for 
operations, maintenance, replacement, or correcting existing deficiencies. This update of Fountain Hills’ 
Infrastructure Improvements Plan and associated update to its development fees includes the following 
necessary public services: 
1.
Fire Facilities
2.
Parks and Recreational Facilities
3.
Street Facilities
This plan includes all necessary elements required to be in full compliance with the Enabling Legislation. 
ARIZONA DEVELOPMENT FEE ENABLING LEGISLATION 
The Enabling Legislation governs how development fees are calculated for municipalities in Arizona. 
Necessary Public Services 
Under the requirements of the Enabling Legislation, development fees may only be used for construction, 
acquisition or expansion of public facilities that are necessary public services. “Necessary public service” 
means any of the following categories of facilities that have a life expectancy of three or more years and 
that are owned and operated on behalf of the municipality: water, wastewater, storm water, library, 
street, fire, police, and parks and recreational. Additionally, a necessary public service includes any facility 
that was financed before June 1, 2011, and that meets the following requirements: 
1.
Development fees were pledged to repay debt service obligations related to the construction of
the facility.
2.
After August 1, 2014, any development fees collected are used solely for the payment of
principal and interest on the portion of the bonds, notes, or other debt service obligations
issued before June 1, 2011, to finance construction of the facility.

Land Use Assumptions, Infrastructure Improvements Plan, and Development Fee Report 
Fountain Hills, Arizona 
2 
Infrastructure Improvements Plan 
Development fees must be calculated pursuant to an IIP. For each necessary public service that is the 
subject of a development fee, by law, the IIP shall include the following seven elements: 
1.
A description of the existing necessary public services in the service area and the costs to update,
improve, expand, correct or replace those necessary public services to meet existing needs and
usage and stricter safety, efficiency, environmental or regulatory standards, which shall be
prepared by qualified professionals licensed in this state, as applicable.
2.
An analysis of the total capacity, the level of current usage and commitments for usage of capacity
of the existing necessary public services, which shall be prepared by qualified professionals
licensed in this state, as applicable.
3.
A description of all or the parts of the necessary public services or facility expansions and their
costs necessitated by and attributable to development in the service area based on the approved
Land Use Assumptions, including a forecast of the costs of infrastructure, improvements, real
property, financing, engineering and architectural services, which shall be prepared by qualified
professionals licensed in this state, as applicable.
4.
A table establishing the specific level or quantity of use, consumption, generation or discharge of
a service unit for each category of necessary public services or facility expansions and an
equivalency or conversion table establishing the ratio of a service unit to various types of land
uses, including residential, commercial, and industrial.
5.
The total number of projected service units necessitated by and attributable to new development
in the service area based on the approved Land Use Assumptions and calculated pursuant to
generally accepted engineering and planning criteria.
6.
The projected demand for necessary public services or facility expansions required by new service
units for a period not to exceed ten years.
7.
A forecast of revenues generated by new service units other than development fees, which shall
include estimated state-shared revenue, highway users revenue, federal revenue, ad valorem
property taxes, construction contracting or similar excise taxes and the capital recovery portion
of utility fees attributable to development based on the approved Land Use Assumptions and a
plan to include these contributions in determining the extent of the burden imposed by the
development.
Qualified Professionals 
The IIP must be developed by qualified professionals using generally accepted engineering and planning 
practices. A qualified professional is defined as “a professional engineer, surveyor, financial analyst or 
planner providing services within the scope of the person’s license, education, or experience.” TischlerBise 
is a fiscal, economic, and planning consulting firm specializing in the cost of growth services. Our services 
include development fees, fiscal impact analysis, infrastructure financing analyses, user fee/cost of service 
studies, capital improvement plans, and fiscal software. TischlerBise has prepared over 800 development 
fee studies over the past 30 years for local governments across the United States.

Land Use Assumptions, Infrastructure Improvements Plan, and Development Fee Report 
Fountain Hills, Arizona 
3 
Conceptual Development Fee Calculation 
In contrast to project-level improvements, development fees fund growth-related infrastructure that will 
benefit multiple development projects, or the entire service area (usually referred to as system 
improvements). The first step is to determine an appropriate demand indicator for the particular type of 
infrastructure. The demand indicator measures the number of service units for each unit of development. 
For example, an appropriate indicator of the demand for parks is population growth and the increase in 
population can be estimated from the average number of persons per housing unit. The second step in 
the development fee formula is to determine infrastructure improvement units per service unit, typically 
called level-of-service (LOS) standards. In keeping with the park example, a common LOS standard is 
improved park acres per thousand people. The third step in the development fee formula is the cost of 
various infrastructure units. To complete the park example, this part of the formula would establish a cost 
per acre for land acquisition and/ or park amenities. 
Evaluation of Credits/Offsets 
Regardless of the methodology, a consideration of credits/offsets is integral to the development of a 
legally defensible development fee. There are two types of credits/offsets that should be addressed in 
development fee studies and ordinances. The first is a revenue credit/offset due to possible double 
payment situations, which could occur when other revenues may contribute to the capital costs of 
infrastructure covered by the development fee. This type of credit/offset is integrated into the fee 
calculation, thus reducing the fee amount. The second is a site-specific credit or developer reimbursement 
for dedication of land or construction of system improvements. This type of credit is addressed in the 
administration and implementation of the development fee program. For ease of administration, 
TischlerBise normally recommends developer reimbursements for system improvements. 
INTRODUCTION TO DEVELOPMENT FEES 
Development fees are one-time payments used to fund capital improvements necessitated by future 
development. Development fees have been utilized by local governments in various forms for at least fifty 
years. Development fees do have limitations and should not be regarded as the total solution for 
infrastructure financing needs. Rather, they should be considered one component of a comprehensive 
portfolio to ensure adequate provision of public facilities with the goal of maintaining current levels of 
service in a community. Any community considering facility fees should note the following limitations:  
1)
Fees can only be used to finance capital infrastructure and cannot be used to finance ongoing
operations and / or maintenance and rehabilitation costs.
2)
Fees cannot be deposited in the General Fund. The funds must be accounted for separately in
individual accounts and earmarked for the capital expenses for which they were collected.
3)
Fees cannot be used to correct existing infrastructure deficiencies unless there is a funding plan in
place to correct the deficiency for all current residents and businesses in the community.

Land Use Assumptions, Infrastructure Improvements Plan, and Development Fee Report 
Fountain Hills, Arizona 
4 
REQUIRED FINDINGS 
There are three reasonable relationship requirements for development fees that are closely related to 
“rational nexus” or “reasonable relationship” requirements enunciated by a number of state courts. 
Although the term “dual rational nexus” is often used to characterize the standard by which courts 
evaluate the validity of development fees under the U. S. Constitution, we prefer a more rigorous 
formulation that recognizes three elements: “impact or need,” “benefit,” and “proportionality.” The dual 
rational nexus test explicitly addresses only the first two, although proportionality is reasonably implied, 
and was specifically mentioned by the U.S. Supreme Court in the Dolan case. The reasonable relationship 
language of the statute is considered less strict than the rational nexus standard used by many courts. 
Individual elements of the nexus standard are discussed further in the following paragraphs. 
Demonstrating an Impact. All future development in a community creates additional demands on some, 
or all, public facilities provided by local government. If the supply of facilities is not increased to satisfy 
that additional demand, the quality or availability of public services for the entire community will 
deteriorate. Development fees may be used to recover the cost of development-related facilities, but only 
to the extent that the need for facilities is a consequence of development that is subject to the fees. The 
Nollan decision reinforced the principle that development exactions may be used only to mitigate 
conditions created by the developments upon which they are imposed. That principle clearly applies to 
development fees. In this study, the impact of development on improvement needs is analyzed in terms 
of quantifiable relationships between various types of development and the demand for specific facilities, 
based on applicable level-of-service standards.  
Demonstrating a Benefit. A sufficient benefit relationship requires that development fee revenues be 
segregated from other funds and expended only on the facilities for which the fees were charged. Fees 
must be expended in a timely manner and the facilities funded by the fees must serve the development 
paying the fees. However, nothing in the U.S. Constitution or the State enabling Act authorizing 
development fees requires that facilities funded with fee revenues be available exclusively to 
development paying the fees. In other words, existing development may benefit from these 
improvements as well.  
Procedures for the earmarking and expenditure of fee revenues are typically mandated by the State 
Enabling Legislation, as are procedures to ensure that the fees are expended expeditiously or refunded. 
All requirements are intended to ensure that developments benefit from the fees they are required to 
pay. Thus, an adequate showing of benefit must address procedural as well as substantive issues.  
Demonstrating Proportionality. The requirement that exactions be proportional to the impacts of 
development was clearly stated by the U.S. Supreme Court in the Dolan case (although the relevance of 
that decision to development fees has been debated) and is logically necessary to establish a proper 
nexus. Proportionality is established through the procedures used to identify development-related facility 
costs, and in the methods used to calculate development fees for various types of facilities and categories 
of development. The demand for facilities is measured in terms of relevant and measurable attributes of 
development.

Land Use Assumptions, Infrastructure Improvements Plan, and Development Fee Report 
Fountain Hills, Arizona 
5 
DEVELOPMENT FEE REPORT 
Development fees for the necessary public services made necessary by new development must be based 
on the same level of service (LOS) provided to existing development in the service area. There are three 
basic methodologies used to calculate development fees. They examine the past, present, and future 
status of infrastructure. The objective of evaluating these different methodologies is to determine the 
best measure of the demand created by new development for additional infrastructure capacity. Each 
methodology has advantages and disadvantages in a particular situation and can be used simultaneously 
for different cost components. 
Reduced to its simplest terms, the process of calculating development fees involves two main steps: (1) 
determining the cost of development-related capital improvements and (2) allocating those costs 
equitably to various types of development. In practice, though, the calculation of development fees can 
become quite complicated because of the many variables involved in defining the relationship between 
development and the need for facilities within the designated service area. The following paragraphs 
discuss basic methodologies for calculating development fees and how those methodologies can be 
applied. 
•
Cost Recovery (past improvements) - The rationale for recoupment, often called cost recovery, is
that new development is paying for its share of the useful life and remaining capacity of facilities
already built, or land already purchased, from which new growth will benefit. This methodology
is often used for utility systems that must provide adequate capacity before new development
can take place.
•
Incremental Expansion (concurrent improvements) - The incremental expansion methodology
documents current LOS standards for each type of public facility, using both quantitative and
qualitative measures. This approach assumes there are no existing infrastructure deficiencies or
surplus capacity in infrastructure. New development is only paying its proportionate share for
growth-related infrastructure. Revenue will be used to expand or provide additional facilities, as
needed, to accommodate new development. An incremental expansion cost method is best
suited for public facilities that will be expanded in regular increments to keep pace with
development.
•
Plan-Based (future improvements) - The plan-based methodology allocates costs for a specified
set of improvements to a specified amount of development. Improvements are typically identified
in a long-range facility plan and development potential is identified by a land use plan. There are
two basic options for determining the cost per demand unit: (1) total cost of a public facility can
be divided by total demand units (average cost), or (2) the growth-share of the public facility cost
can be divided by the net increase in demand units over the planning timeframe (marginal cost).

Land Use Assumptions, Infrastructure Improvements Plan, and Development Fee Report 
Fountain Hills, Arizona 
6 
DEVELOPMENT FEE COMPONENTS 
Shown below, Figure 1 summarizes service areas, methodologies, and infrastructure cost components for 
the proposed fees. 
Figure 1: Proposed Development Fee Service Areas, Methodologies, and Cost Components 
Calculations throughout this report are based on an analysis conducted using Excel software. Most results 
are discussed in the report using two, three, and four decimal places, which represent rounded figures. 
However, the analysis itself uses figures carried to their ultimate decimal places; therefore, the sums and 
products generated in the analysis may not equal the sum or product if the reader replicates the 
calculation with the factors shown in the report (due to the rounding of figures shown, not in the analysis). 
CURRENT DEVELOPMENT FEES 
Current development fees are shown in Figure 2. For residential development, the development unit is a 
housing unit, based on housing unit type. For nonresidential development type, the development unit is 
1,000 square feet of floor area. 
Figure 2: Current Development Fees 
Necessary Public 
Service
Service 
Area
Cost 
Recovery
Incremental 
Expansion
Plan-Based
Cost 
Allocation
Fire
Citywide
N/A
Fire Facilities, Fire 
Apparatus, Fire 
Equipment
Development Fee 
Report
Population,
Jobs
Parks and 
Recreational
Citywide
N/A
Developed Park 
Land, Park Amenities
Development Fee 
Report
Population,
Jobs
Street
Citywide
N/A
N/A
Street 
Improvements, 
Development Fee 
Report
VMT
Development
Unit
Single Family
Housing Unit
$122
$1,916
$1,935
$3,973
Multi-Family
Housing Unit
$94
$1,479
$964
$2,537
Development
Unit
Industrial
1,000 Sq Ft
$100
$560
$630
$1,290
Commercial
1,000 Sq Ft
$140
$810
$2,860
$3,810
Office & Other Services
1,000 Sq Ft
$180
$1,030
$1,240
$2,450
Institutional
1,000 Sq Ft
$60
$320
$2,480
$2,860
Current
Fees
Nonresidential Fees per Development Unit
Development Type
Parks & 
Recreational
Street
Current
Fees
Fire
Residential Fees per Development Unit
Development Type
Parks & 
Recreational
Street
Fire

Land Use Assumptions, Infrastructure Improvements Plan, and Development Fee Report 
Fountain Hills, Arizona 
7 
PROPOSED DEVELOPMENT FEES 
Proposed development fees will be assessed per development unit. For residential development, the 
development unit is a housing unit, based on housing unit type. For nonresidential development, the 
development unit is 1,000 square feet of floor area. The proposed fees represent the maximum allowable 
fees based on the analysis outlined in this report. Fountain Hills may adopt fees that are less than the 
amounts shown; however, a reduction in development fee revenue will necessitate an increase in other 
revenues, a decrease in planned capital improvements, and/or a decrease in level-of-service standards. 
All costs in the Development Fee Report represent current dollars with no assumed inflation over time. If 
costs change significantly over time, development fees should be recalculated. 
Figure 3: Proposed Development Fees 
DIFFERENCE BETWEEN PROPOSED AND CURRENT DEVELOPMENT FEES 
The differences between the proposed and current development fees are displayed below in Figure 4. For 
residential development, the development unit is a housing unit, based on housing unit type. For 
nonresidential development, the development unit is 1,000 square feet of floor area. 
Figure 4: Difference Between Proposed and Current Development Fees 
Development
Unit
Single Family
Housing Unit
$1,303
$4,014
$6,997
$12,314
Multi-Family
Housing Unit
$923
$2,844
$3,390
$7,157
Development
Unit
Industrial
1,000 Sq Ft
$862
$215
$2,035
$3,112
Commercial
1,000 Sq Ft
$1,164
$291
$6,719
$8,174
Office & Other Services
1,000 Sq Ft
$1,790
$447
$4,531
$6,768
Institutional
1,000 Sq Ft
$511
$128
$8,160
$8,799
Proposed
Fees
Residential Fees per Development Unit
Nonresidential Fees per Development Unit
Parks & 
Recreational
Street
Proposed
Fees
Development Type
Development Type
Parks & 
Recreational
Street
Fire
Fire
Development
Unit
Single Family
Housing Unit
$1,181
$2,098
$5,062
$8,341
Multi-Family
Housing Unit
$829
$1,365
$2,426
$4,620
Development
Unit
Industrial
1,000 Sq Ft
$762
($345)
$1,405
$1,822
Commercial
1,000 Sq Ft
$1,024
($519)
$3,859
$4,364
Office & Other Services
1,000 Sq Ft
$1,610
($583)
$3,291
$4,318
Institutional
1,000 Sq Ft
$451
($192)
$5,680
$5,939
Nonresidential Fees per Development Unit
Development Type
Parks & 
Recreational
Street
Difference
Fire
Difference
Fire
Residential Fees per Development Unit
Development Type
Parks & 
Recreational
Street

Land Use Assumptions, Infrastructure Improvements Plan, and Development Fee Report 
Fountain Hills, Arizona 
8 
STAFF PROPOSED DEVELOPMENT FEES 
The staff proposed development fees shown in Figure 5 include a 50 percent reduction to the proposed 
street facilities development fees shown in Figure 3. The Fountain Hills Town Council adopted the LUA 
and IIP on October 21, 2025. The adopted street facilities IIP includes an engineering cost estimate of 
approximately $6.3 million to widen Shea Boulevard from Palisades Boulevard to Fountain Hills Boulevard, 
and Fountain Hills received a bid of approximately $3.9 million after adoption of the street facilities IIP. 
The bid cost is approximately 62 percent of the engineering cost estimate used in the adopted street 
facilities IIP, and Fountain Hills staff recommend a 50 percent reduction to the proposed street facilities 
development fees. Fountain Hills will assess the staff proposed development fees per development unit. 
Figure 5: Staff Proposed Development Fees 
DIFFERENCE BETWEEN STAFF PROPOSED AND CURRENT DEVELOPMENT FEES 
The differences between the staff proposed and current development fees are displayed below in Figure 
6. For residential development, the development unit is a housing unit, based on housing unit type. For
nonresidential development, the development unit is 1,000 square feet of floor area.
Figure 6: Difference Between Staff Proposed and Current Development Fees 
Development
Unit
Single Family
Housing Unit
$1,303
$4,014
$3,499
$8,816
Multi-Family
Housing Unit
$923
$2,844
$1,695
$5,462
Development
Unit
Industrial
1,000 Sq Ft
$862
$215
$1,018
$2,095
Commercial
1,000 Sq Ft
$1,164
$291
$3,360
$4,815
Office & Other Services
1,000 Sq Ft
$1,790
$447
$2,266
$4,503
Institutional
1,000 Sq Ft
$511
$128
$4,080
$4,719
Nonresidential Fees per Development Unit
Development Type
Fire
Parks & 
Recreational
Street
Alternative
Fees
Residential Fees per Development Unit
Development Type
Fire
Parks & 
Recreational
Street
Alternative
Fees
Development
Unit
Single Family
Housing Unit
$1,181
$2,098
$1,564
$4,843
Multi-Family
Housing Unit
$829
$1,365
$731
$2,925
Development
Unit
Industrial
1,000 Sq Ft
$762
($345)
$388
$805
Commercial
1,000 Sq Ft
$1,024
($519)
$500
$1,005
Office & Other Services
1,000 Sq Ft
$1,610
($583)
$1,026
$2,053
Institutional
1,000 Sq Ft
$451
($192)
$1,600
$1,859
Nonresidential Fees per Development Unit
Development Type
Fire
Parks & 
Recreational
Street
Difference
Residential Fees per Development Unit
Development Type
Fire
Parks & 
Recreational
Street
Difference

Land Use Assumptions, Infrastructure Improvements Plan, and Development Fee Report 
Fountain Hills, Arizona 
9 
LAND USE ASSUMPTIONS 
Arizona’s Development Fee Act requires the preparation of Land Use Assumptions, which are defined in 
Arizona Revised Statutes § 9-463.05(T)(6) as: 
“projections of changes in land uses, densities, intensities and population for a specified service 
area over a period of at least ten years and pursuant to the General Plan of the municipality.” 
The estimates and projections of residential and nonresidential development in this Land Use 
Assumptions document are for all areas within Fountain Hills. The current demographic estimates and 
future development projections will be used in the Infrastructure Improvements Plan (IIP) and in the 
calculation of development fees. Current demographic data estimates for 2025 are used in calculating 
levels of service (LOS) provided to existing development in Fountain Hills. Arizona’s Enabling Legislation 
requires fees to be updated at least every five years and limits the IIP to a maximum of 10 years. The 
service area for all Infrastructure Improvements Plans is shown in Figure L1. 
SUMMARY OF GROWTH INDICATORS 
Key land use assumptions include population, housing units, employment, and nonresidential floor area 
projections. Based on Development Services Department recommendations, the analysis uses recent 
permit trends for residential projections and Maricopa Association of Governments (MAG) employment 
data for nonresidential projections. Development projections are summarized in Figure L9. These 
projections will be used to estimate fee revenue and to indicate the anticipated need for growth-related 
infrastructure. However, development fee methodologies are designed to reduce sensitivity to 
development projections in the determination of the proportionate share fee amounts. If actual 
development occurs at a slower rate than projected, fee revenue will decline, but so will the need for 
growth-related infrastructure. In contrast, if development occurs at a faster rate than anticipated, fee 
revenue will increase, but Fountain Hills will also need to accelerate infrastructure improvements to keep 
pace with the actual rate of development. During the next 10 years, residential development projections 
indicate a population increase of 2,462 persons in 1,270 housing units, and nonresidential development 
projections indicate an employment increase of 447 jobs in approximately 175,000 square feet.

Land Use Assumptions, Infrastructure Improvements Plan, and Development Fee Report 
Fountain Hills, Arizona 
10 
Figure L1: Fountain Hills Development Fee Service Area

Land Use Assumptions, Infrastructure Improvements Plan, and Development Fee Report 
Fountain Hills, Arizona 
11 
RESIDENTIAL DEVELOPMENT 
This section details current estimates and future projections of residential development including 
population and housing units. 
Recent Residential Construction 
Development fees require an analysis of current levels of service. For residential development, current 
levels of service are determined using estimates of population and housing units. Shown below, Figure L2 
shows the number of housing units added by decade according to U.S. Census Bureau data. In the previous 
decade, Fountain Hills’ housing stock grew by an average of 72 housing units per year. 
Figure L2: Housing Units by Decade 
As shown below, recent residential permits averaged 76 single-family units, two duplex units, and 55 
multi-family units per year. 
Figure L3: Residential Permitted Units 
Census 2010 Housing Units
13,167
Census 2020 Housing Units
13,883
New Housing Units 2010 to 2020
716
Source: U.S. Census Bureau, Census 2020 Summary File 1, Census 2010 Summary File 1, 2019-2023
 5-Year American Community Survey (for 2000s and earlier, adjusted to yield total units in 2010).
The Fountain Hills housing stock grew 
by an average of 72 housing units per 
year from 2010 to 2020. 
0
1,000
2,000
3,000
4,000
5,000
6,000
Before 1970
1970s
1980s
1990s
2000s
2010s
Housing Units Added by Decade 
in Fountain Hills
Year
Single Family
Duplex
Multi-Family
Total
2020
35
4
94
133
2021
96
2
107
205
2022
119
0
8
127
2023
53
0
11
64
Total
303
6
220
529
Average
76
2
55
132
Source: Town of Fountain Hills, Land Use Analysis & Statistical Report, 2023

Land Use Assumptions, Infrastructure Improvements Plan, and Development Fee Report 
Fountain Hills, Arizona 
12 
Occupancy Factors 
According to the U.S. Census Bureau, a household is a housing unit occupied by year-round residents. 
Development fees often use per capita standards and persons per housing unit (PPHU) or persons per 
household (PPH) to derive proportionate share fee amounts. When PPHU is used in the fee calculations, 
infrastructure standards are derived using year-round population. When PPH is used in the fee 
calculations, the development fee methodology assumes a higher percentage of housing units will be 
occupied, thus requiring seasonal or peak population to be used when deriving infrastructure standards. 
TischlerBise recommends that Fountain Hills impose development fees for residential development 
according to the number of persons per household. 
Occupancy calculations require data on population and the types of units by structure. The 2010 census 
did not obtain detailed information using a “long-form” questionnaire. Instead, the U.S. Census Bureau 
switched to a continuous monthly mailing of surveys, known as the American Community Survey (ACS), 
which has limitations due to sample-size constraints. For example, data on detached housing units are 
now combined with attached single units (commonly known as townhouses, which share a common 
sidewall, but are constructed on an individual parcel of land). For development fees in Fountain Hills, 
“Single-Family” includes detached, attached, and mobile home units, and “Multi-Family” includes 
duplexes and all structures with two or more units on an individual parcel of land, recreational vehicles, 
boats, and all other types of units. 
Figure L4 below shows the occupancy estimates for Fountain Hills based on 2019-2023 American 
Community Survey 5-Year Estimates. Single-family units averaged 2.23 persons per household and multi-
family units averaged 1.58 persons per household. The estimates shown below are used only to calculate 
occupancy factors and may not match population and housing unit estimates shown throughout this 
report.  
Figure L4: Occupancy Factors 
Single-Family1
20,644
9,249
2.23
10,781
1.91
81.0%
14.21%
Multi-Family2
2,894
1,828
1.58
2,528
1.14
19.0%
27.69%
Total
23,538
11,077
2.12
13,309
1.77
100.0%
16.77%
Source: U.S. Census Bureau, 2019-2023 American Community Survey 5-Year Estimates
1. Includes detached, attached (townhouse), and mobile home units.
2. Includes dwellings in structures with two or more units, RVs, and all other units.
Housing
Mix
Vacancy 
Rate
Housing Type
Persons
Households
Persons per 
Household
Housing 
Units
Persons per 
Housing Unit

Land Use Assumptions, Infrastructure Improvements Plan, and Development Fee Report 
Fountain Hills, Arizona 
13 
Residential Estimates 
The Fountain Hills 2023 Land Use Analysis & Statistical Report includes 14,330 housing units in 2023 and 
2024 building permit data provided by Fountain Hills staff includes 56 single-family units for a total of 
14,386 housing units in 2024. To estimate housing units in the 2025 base year, TischlerBise uses a modified 
average of recent permit trends shown in Figure L3 – 70 single-family units and 57 multi-family units. The 
2025 base year includes 14,513 housing units. 
Arizona Office of Economic Opportunity estimates for 2024 include a population of 24,163 persons. To 
estimate population in the 2025 base year, the analysis converts the housing unit increase from 2024 to 
2025 into population using the occupancy factors shown in Figure L4. The 2025 base year includes 24,409 
persons (24,163 persons in 2023 + (70 single-family units X 2.23 persons per housing unit = 156 persons) 
+ (57 multi-family units X 1.58 persons per housing unit = 90 persons)). For this study, the analysis assumes
the occupancy factors shown in Figure L4 will remain constant throughout the 10-year projection period.
Seasonal Population 
To account for seasonal residents, the analysis includes vacant households used for seasonal, recreational, 
or occasional use. According to 2019-2023 ACS estimates, seasonal units account for 1,635 of the 2,232 
vacant units (13,309 total housing units – 11,077 occupied housing units) shown in Figure L4. Applying the 
townwide occupancy rate of 2.12 persons per household to 1,635 seasonal households provides a 
seasonal population estimate of 3,474 persons. In the 2025 base year, the peak population estimate is 
27,883 (24,655 resident population + 3,474 seasonal population). 
Residential Projections 
Population and housing unit projections are used to illustrate the possible future pace of service demands, 
revenues, and expenditures. To the extent these factors change, the projected need for infrastructure will 
also change. If development occurs at a more rapid rate than projected, the demand for infrastructure 
will increase at a corresponding rate. If development occurs at a slower rate than projected, the demand 
for infrastructure will also decrease. 
To project future housing units, the analysis uses a modified average of recent permit trends shown in 
Figure L3 – 70 single-family units per year and 57 multi-family units per year. To convert projected housing 
units to population, the analysis uses occupancy factors shown in Figure L4.  
Based on these assumptions, the 10-year projections include an increase of 1,270 housing units (700 
single-family units + 570 multi-family units) and 2,462 persons ((700 single-family units X 2.23 persons per 
household) + (570 multi-family units X 1.58 persons per household)) in Fountain Hills. 
Figure L5: Residential Projections 
2025
2026
2027
2028
2029
2030
2035
Base Year
1
2
3
4
5
10
Peak Population
27,883
28,129
28,375
28,621
28,868
29,114
30,345
2,462
Housing Units
Single Family
10,138
10,208
10,278
10,348
10,418
10,488
10,838
700
Multi-Family
4,375
4,432
4,489
4,546
4,603
4,660
4,945
570
Total
14,513
14,640
14,767
14,894
15,021
15,148
15,783
1,270
Fountain Hills, Arizona
10-Year 
Increase

Land Use Assumptions, Infrastructure Improvements Plan, and Development Fee Report 
Fountain Hills, Arizona 
14 
 
NONRESIDENTIAL DEVELOPMENT 
This section details current estimates and future projections of nonresidential development including jobs 
and nonresidential floor area. 
Nonresidential Demand Factors 
TischlerBise uses the term jobs to refer to employment by place of work. Figure L6 includes the 
nonresidential development prototypes used to derive employment densities from data published in Trip 
Generation, Institute of Transportation Engineers, 11th Edition (2021). The prototype for industrial 
development is Light Industrial (ITE 110) with 637 square feet of floor area per employee. For office 
development, the prototype is General Office (ITE 710) with 307 square feet of floor area per employee. 
The prototype for institutional development is Government Office (ITE 730) with 330 square feet of floor 
area per employee. The prototype for commercial development is Shopping Center (ITE 820) with 471 
square feet of floor area per employee. 
Figure L6: Nonresidential Demand Units 
 
Nonresidential Estimates 
The analysis uses data published by Esri Business Analyst Online for the 2025 employment estimate of 
7,501 jobs. According to CoStar data, existing nonresidential development in the 2025 base year includes 
4,915,020 square feet – 1,612,280 square feet of industrial development, 1,408,000 square feet of 
commercial development, 1,574,691 square feet of office development, and 770,049 square feet of 
institutional development. 
Figure L7: Nonresidential Estimates 
 
ITE
Demand
Wkdy Trip Ends Wkdy Trip Ends
Emp Per
Square Feet
Code
Unit
Per Dmd Unit1
Per Employee1
Dmd Unit
Per Employee
110
Light Industrial
1,000 Sq Ft
4.87
3.10
1.57
637
710
General Office (avg size)
1,000 Sq Ft
10.84
3.33
3.26
307
730
Government Office
1,000 Sq Ft
22.59
7.45
3.03
330
820
Shopping Center (avg size)
1,000 Sq Ft
37.01
17.42
2.12
471
1. Trip Generation, Institute of Transportation Engineers, 11th Edition (2021).
Land Use / Size
2025
Percent of
2025
Jobs1
Total Jobs
Floor Area2
Industrial3
781
10%
1,162,280
Commercial4
2,215
30%
1,408,000
Office & Other Services5
3,543
47%
1,574,691
Institutional6
962
13%
770,049
Total
7,501
100%
4,915,020
1. Esri Business Analyst Online, Business Summary, 2025.
2. CoStar, 2025
3. Major sectors are Manufacturing; Wholesale Trade.
4. Major sectors are Retail Trade; Accommodation & Food Services.
5. Major sectors are Health Care and Social Assistance; Other Services.
6. Major sectors are Educational Services; Public Administration.
Development Type

Land Use Assumptions, Infrastructure Improvements Plan, and Development Fee Report 
Fountain Hills, Arizona 
15 
 
Nonresidential Projections  
Employment and floor area projections are used to illustrate the possible future pace of service demands, 
revenues, and expenditures. To the extent these factors change, the projected need for infrastructure will 
also change. If development occurs at a more rapid rate than projected, the demand for infrastructure 
will increase at a corresponding rate. If development occurs at a slower rate than projected, the demand 
for infrastructure will also decrease. 
TischlerBise projects future commercial, office and other services, and institutional development using 
employment projections published by the Maricopa Association of Governments (MAG). As directed by 
Fountain Hills Development Services Department staff, the analysis projects no industrial employment 
growth due to the limited availability of industrial sites. During the next 10 years, projected employment 
growth includes an additional 447 jobs. This includes no additional industrial jobs, 224 commercial jobs, 
173 office and other services jobs, and 50 institutional jobs. 
Applying the ITE employment density factors shown in Figure L6 to the employment projections shown in 
Figure L8 provides the necessary conversion from jobs to nonresidential floor area. During the next 10 
years, projected nonresidential development growth includes approximately 175,000 square feet of floor 
area. This includes no industrial development due to the limited availability of industrial sites, 106,000 
square feet of commercial development (224 commercial jobs X 471 square feet per job), 53,000 square 
feet of office development (173 office jobs X 307 square feet per job), and 16,000 square feet of 
institutional development (50 institutional jobs X 330 square feet per job). 
Figure L8: Nonresidential Projections 
 
 
2025
2026
2027
2028
2029
2030
2035
Base Year
1
2
3
4
5
10
Employment
Industrial
781
781
781
781
781
781
781
0
Commercial
2,215
2,220
2,225
2,230
2,234
2,239
2,439
224
Office & Other Services
3,543
3,573
3,602
3,632
3,662
3,691
3,716
173
Institutional
962
968
973
979
985
990
1,012
50
Total
7,501
7,541
7,581
7,622
7,662
7,702
7,948
447
Floor Area / Sq Ft (x1,000)
Industrial
1,162
1,162
1,162
1,162
1,162
1,162
1,162
0
Commercial
1,408
1,410
1,413
1,415
1,417
1,419
1,514
106
Office & Other Services
1,575
1,584
1,593
1,602
1,611
1,620
1,628
53
Institutional
770
772
774
776
778
779
786
16
Total
4,915
4,928
4,942
4,955
4,968
4,981
5,090
175
Fountain Hills, Arizona
10-Year 
Increase

Land Use Assumptions, Infrastructure Improvements Plan, and Development Fee Report 
Fountain Hills, Arizona 
16 
 
DEVELOPMENT PROJECTIONS 
Provided below is a summary of development projections used in the Development Fee Report. Base year estimates for 2025 are used in the fee 
calculations. Development projections are used to illustrate a possible future pace of demand for service units and cash flows resulting from 
revenues and expenditures associated with those demands. 
Figure L9: Development Projections Summary  
 
 
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
Base Year
1
2
3
4
5
6
7
8
9
10
Peak Population
27,883
28,129
28,375
28,621
28,868
29,114
29,360
29,606
29,852
30,098
30,345
2,462
Housing Units
Single Family
10,138
10,208
10,278
10,348
10,418
10,488
10,558
10,628
10,698
10,768
10,838
700
Multi-Family
4,375
4,432
4,489
4,546
4,603
4,660
4,717
4,774
4,831
4,888
4,945
570
Total
14,513
14,640
14,767
14,894
15,021
15,148
15,275
15,402
15,529
15,656
15,783
1,270
Employment
Industrial
781
781
781
781
781
781
781
781
781
781
781
0
Commercial
2,215
2,220
2,225
2,230
2,234
2,239
2,279
2,319
2,359
2,399
2,439
224
Office & Other Services
3,543
3,573
3,602
3,632
3,662
3,691
3,696
3,701
3,706
3,711
3,716
173
Institutional
962
968
973
979
985
990
995
999
1,003
1,007
1,012
50
Total
7,501
7,541
7,581
7,622
7,662
7,702
7,751
7,801
7,850
7,899
7,948
447
Floor Area / Sq Ft (x1,000)
Industrial
1,162
1,162
1,162
1,162
1,162
1,162
1,162
1,162
1,162
1,162
1,162
0
Commercial
1,408
1,410
1,413
1,415
1,417
1,419
1,438
1,457
1,476
1,495
1,514
106
Office & Other Services
1,575
1,584
1,593
1,602
1,611
1,620
1,622
1,623
1,625
1,626
1,628
53
Institutional
770
772
774
776
778
779
781
782
784
785
786
16
Total
4,915
4,928
4,942
4,955
4,968
4,981
5,003
5,025
5,047
5,069
5,090
175
Fountain Hills, Arizona
10-Year 
Increase

Land Use Assumptions, Infrastructure Improvements Plan, and Development Fee Report 
Fountain Hills, Arizona 
17 
 
FIRE FACILITIES 
ARS § 9-463.05 (T)(7)(f) defines the eligible facilities and assets for the Fire Facilities IIP:   
“Fire and police facilities, including all appurtenances, equipment and vehicles. Fire and police 
facilities do not include a facility or portion of a facility that is used to replace services that were 
once provided elsewhere in the municipality, vehicles and equipment used to provide 
administrative services, helicopters or airplanes or a facility that is used for training firefighters or 
officers from more than one station or substation.” 
The Fire Facilities IIP includes components for fire facilities, fire apparatus, fire equipment, and the cost 
of preparing the Fire Facilities IIP and related development fee report. The incremental expansion 
methodology is used for fire facilities, fire apparatus, and fire equipment. The plan-based methodology is 
used for the development fee report. 
SERVICE AREA 
The Fountain Hills Fire Department strives to provide a uniform response time within the town limits; 
therefore, there is a single service area for the Fire Facilities IIP.  
PROPORTIONATE SHARE 
ARS § 9-463.05 (B)(3) states that the development fee shall not exceed a proportionate share of the cost 
of necessary public services needed to accommodate new development. The Fire Facilities IIP and 
development fees allocate the capital cost of necessary public services between residential and 
nonresidential development based on functional population. Functional population is similar to what the 
U.S. Census Bureau calls "daytime population." This accounts for people living and working in a 
jurisdiction, but it also considers commuting patterns and time spent at home and nonresidential 
locations. The functional population approach allocates the cost of the fire infrastructure to residential 
and nonresidential development based on the activity of residents and workers through 24 hours in a day. 
Residents that do not work are assigned 20 hours per day to residential development and four hours per 
day to nonresidential development (annualized averages). Residents that work in Fountain Hills are 
assigned 14 hours to residential development and 10 hours to nonresidential development. Residents that 
work outside Fountain Hills are assigned 14 hours to residential development, and the remaining 10 hours 
in the day are assumed to be spent working outside of Fountain Hills. Inflow commuters are assigned 10 
hours to nonresidential development. Based on 2022 population data from the Arizona Office of Economic 
Opportunity and 2022 employment data from the U.S. Census Bureau’s OnTheMap web application, 
functional population is 80 percent residential development and 20 percent nonresidential development.

Land Use Assumptions, Infrastructure Improvements Plan, and Development Fee Report 
Fountain Hills, Arizona 
18 
 
Figure F1: Proportionate Share 
 
The proportionate share of costs attributable to residential development will be allocated to population 
and then converted to an appropriate amount by housing type. Since nonresidential calls for service were 
unavailable by specific nonresidential use, TischlerBise recommends using jobs as the demand indicator 
for nonresidential demand. Employment density is highest for office development and lowest for 
institutional development. Commercial and industrial densities fall between the other two categories. This 
ranking of employment densities is consistent with the relative demand for fire services from 
nonresidential development. 
 
 
Residential
Demand
Person
Population
23,972
Hours/Day
Hours
Residents Not Working
14,709
20
294,180
Employed Residents
9,263
Employed in Fountain Hills
1,276
14
17,864
Employed outside Fountain Hills
7,987
14
111,818
Residential Subtotal
423,862
Residential Share
80%
Nonresidential
Non-working Residents
14,709
4
58,836
Jobs Located in Fountain Hills
4,779
Residents Employed in Fountain Hills
1,276
10
12,760
Non-Resident Workers (inflow commuters)
3,503
10
35,030
Nonresidential Subtotal
106,626
Nonresidential Share
20%
Total
530,488
Source: Arizona Office of Economic Opportunity (population), U.S. Census Bureau, OnTheMap Application and LEHD 
Origin-Destination Employment Statistics, Version 6.23.5 (employment).
Demand Units in 2022

Land Use Assumptions, Infrastructure Improvements Plan, and Development Fee Report 
Fountain Hills, Arizona 
19 
 
RATIO OF SERVICE UNIT TO DEVELOPMENT UNIT 
ARS § 9-463.05(E)(4) requires: 
“A table establishing the specific level or quantity of use, consumption, generation or discharge of 
a service unit for each category of necessary public services or facility expansions and an 
equivalency or conversion table establishing the ratio of a service unit to various types of land 
uses, including residential, commercial and industrial.” 
Figure F2 displays the demand indicators per development unit for residential and nonresidential 
development. For residential development, the table displays the number of persons per household for 
each development unit based on American Community Survey data shown in Figure L4. For nonresidential 
development, the table displays the number of jobs per development unit based on ITE employment 
density factors shown in Figure L6. 
Figure F2: Ratio of Service Unit to Development Unit 
 
 
ANALYSIS OF CAPACITY, USAGE, AND COSTS OF EXISTING PUBLIC SERVICES  
ARS § 9-463.05(E)(1) requires: 
“A description of the existing necessary public services in the service area and the costs to upgrade, 
update, improve, expand, correct or replace those necessary public services to meet existing needs 
and usage and stricter safety, efficiency, environmental or regulatory standards, which shall be 
prepared by qualified professionals licensed in this state, as applicable.” 
ARS § 9-463.05(E)(2) requires: 
“An analysis of the total capacity, the level of current usage and commitments for usage of 
capacity of the existing necessary public services, which shall be prepared by qualified 
professionals licensed in this state, as applicable.” 
Development
Unit
Single Family
Housing Unit
2.23
Multi-Family
Housing Unit
1.58
Development
Unit
Industrial
1,000 Sq Ft
1.57
Commercial
1,000 Sq Ft
2.12
Office & Other Services
1,000 Sq Ft
3.26
Institutional
1,000 Sq Ft
0.93
1. U.S. Census Bureau, 2019-2023 American Community Survey 5-Year Estimates
2. Trip Generation, Institute of Transportation Engineers, 11th Edition (2021).
Residential Development
Development Type
Jobs
per Unit1
Development Type
Persons
per Unit1
Nonresidential Development

Land Use Assumptions, Infrastructure Improvements Plan, and Development Fee Report 
Fountain Hills, Arizona 
20 
 
Fire Facilities – Incremental Expansion 
Fountain Hills currently provides 16,000 square feet of fire facilities to existing development, and Fountain 
Hills plans to construct additional fire facilities to serve future development. To allocate the proportionate 
share of demand for fire facilities to residential and nonresidential development, this analysis uses 
functional population shown in Figure F1. The existing level of service for residential development is 
0.4591 square feet per person (16,000 square feet X 80 percent residential share / 27,883 persons). The 
nonresidential level of service is 0.4266 square feet per job (16,000 square feet X 20 percent 
nonresidential share / 7,501 jobs). 
The analysis uses a construction cost estimate of $1,000 per square foot as a proxy for future growth-
related fire facility costs. For fire facilities, the cost is $459.06 per person (0.4591 square feet per person 
X $1,000 per square foot) and $426.61 per job (0.4266 square feet per job X $1,000 per square foot). 
Figure F3: Existing Level of Service 
 
 
 
Description
Square Feet
Fire Station 1
6,400
Fire Station 2
9,600
Total
16,000
Cost per Square Foot
$1,000
Existing Square Feet
16,000
Residential Share
80%
2025 Population
27,883
Square Feet per Person
0.4591
Cost per Person
$459.06
Nonresidential Share
20%
2025 Jobs
7,501
Square Feet per Job
0.4266
Cost per Job
$426.61
Source: Fountain Hills Fire Department
Level-of-Service (LOS) Standards
Residential
Cost Factors
Nonresidential

Land Use Assumptions, Infrastructure Improvements Plan, and Development Fee Report 
Fountain Hills, Arizona 
21 
 
Fire Apparatus – Incremental Expansion 
Fountain Hills currently serves existing development with 8 fire apparatus and plans to acquire additional 
fire apparatus to serve future development. The replacement cost of the existing fleet is $3,685,000. The 
average cost of the existing fleet is $460,625 per unit, and the analysis uses this as a proxy for future 
growth-related fire apparatus costs. To allocate the proportionate share of demand for fire apparatus to 
residential and nonresidential development, this analysis uses functional population outlined in Figure F1. 
The existing level of service for residential development is 0.0002 units per person (8 units X 80 percent 
residential share / 27,883 persons). The nonresidential level of service is 0.0002 units per job (8 units X 20 
percent nonresidential share / 7,501 jobs). 
The average cost of the existing fleet is $460,625 per unit ($3,685,000 total cost / 8 units), and the analysis 
uses this as a proxy for future growth-related fire apparatus costs. For fire apparatus, the cost is $105.73 
per person (0.0002 units per person X $460,625 per unit) and $98.25 per job (0.0002 units per job X 
$460,625 per unit). 
Figure F4: Existing Level of Service 
 
Description
Units
Unit Cost
Total Cost
Brush Truck
2
$300,000
$600,000
Command Vehicle
2
$145,000
$290,000
Engine
2
$900,000
$1,800,000
Ladder Truck
1
$950,000
$950,000
UTV
1
$45,000
$45,000
Total
8
$460,625
$3,685,000
Average Cost per Unit
$460,625
Existing Units
8
Residential Share
80%
2025 Population
27,883
Units per Person
0.0002
Cost per Person
$105.73
Nonresidential Share
20%
2025 Jobs
7,501
Units per Job
0.0002
Cost per Job
$98.25
Source: Fountain Hills Fire Department
Level-of-Service (LOS) Standards
Residential
Nonresidential
Cost Factors

Land Use Assumptions, Infrastructure Improvements Plan, and Development Fee Report 
Fountain Hills, Arizona 
22 
 
Fire Equipment – Incremental Expansion 
Fountain Hills currently serves existing development with 39 units of fire equipment, and Fountain Hills 
plans to acquire additional fire equipment to serve future development. The replacement cost of the 
existing inventory is $193,000. To allocate the proportionate share of demand for fire equipment to 
residential and nonresidential development, this analysis uses functional population outlined in Figure F1. 
The existing level of service for residential development is 0.0011 units per person (39 units X 80 percent 
residential share / 27,883 persons). The nonresidential level of service is 0.0010 units per job (39 units X 
20 percent nonresidential share / 7,501 jobs). 
The average cost of the existing inventory is $4,949 per unit ($193,000 total cost / 39 units), and the 
analysis uses this as a proxy for future growth-related fire equipment costs. For fire equipment, the cost 
is $5.4 per person (0.0011 units per person X $4,949 per unit) and $5.15 per job (0.0010 units per job X 
$4,949 per unit). 
Figure F5: Existing Level of Service 
  
Description
Units
Unit Cost
Total Cost
Defibrillators
25
$1,000
$25,000
Multi-Band Portable Radio
14
$12,000
$168,000
Total
39
$4,949
$193,000
Average Cost per Unit
$4,949
Existing Units
39
Residential Share
80%
2025 Population
27,883
Units per Person
0.0011
Cost per Person
$5.54
Nonresidential Share
20%
2025 Jobs
7,501
Units per Job
0.0010
Cost per Job
$5.15
Source: Fountain Hills Fire Department
Cost Factors
Level-of-Service (LOS) Standards
Residential
Nonresidential

Land Use Assumptions, Infrastructure Improvements Plan, and Development Fee Report 
Fountain Hills, Arizona 
23 
 
Development Fee Report – Plan-Based 
The 2025 cost to prepare the Fire Facilities IIP and related development fee report equals $21,300. 
Fountain Hills plans to update its report every five years, so the 10-year cost is $42,600. Based on the 10-
year cost, proportionate share, and 10-year projections of future development from the Land Use 
Assumptions document, the cost per service unit is $13.4 per person and $19.04 per job. 
Figure F6: IIP and Development Fee Report 
 
 
PROJECTED DEMAND FOR SERVICES AND COSTS 
ARS § 9-463.05(E)(5) requires: 
“The total number of projected service units necessitated by and attributable to new development 
in the service area based on the approved land use assumptions and calculated pursuant to 
generally accepted engineering and planning criteria.” 
ARS § 9-463.05(E)(6) requires: 
“The projected demand for necessary public services or facility expansions required by new service 
units for a period not to exceed ten years.” 
As shown in the Land Use Assumptions document, projected development during the next 10 years 
includes population growth of 2,462 persons and employment growth of 447 jobs. To maintain existing 
levels of service, Fountain Hills needs to construct approximately 1,321 square feet of fire facilities, 
acquire approximately one fire apparatus, and acquire approximately three units of fire equipment over 
the next 10 years. The following pages include a more detailed projection of demand for services and 
costs for the Fire Facilities IIP. 
 
 
Necessary 
Public Service
2025 
Study Update
10-Year Cost
(2 Updates)
Service 
Unit
10-Year 
Change
Cost per 
Service Unit
Residential
80%
Population
2,462
$13.84
Nonresidential
20%
Jobs
447
$19.04
Residential
98%
Population
2,462
$16.96
Nonresidential
2%
Jobs
447
$1.90
Street
$21,350
$42,700
All Development
100%
VMT
32,209
$1.33
Total
$63,950
$127,900
Proportionate Share
Parks and 
Recreational
$42,600
Fire
$42,600
$21,300
$21,300

Land Use Assumptions, Infrastructure Improvements Plan, and Development Fee Report 
Fountain Hills, Arizona 
24 
 
Fire Facilities – Incremental Expansion 
Fountain Hills plans to maintain its existing level of service for fire facilities over the next 10 years. Based 
on a projected population increase of 2,462 persons, future residential development demands 
approximately 1,130 square feet of fire facilities (2,462 additional persons X 0.4591 square feet per 
person). With projected nonresidential growth of 447 jobs, future nonresidential development demands 
approximately 191 additional square feet of fire facilities (447 additional jobs X 0.4266 square feet per 
job). Future development demands approximately 1,321 square feet of fire facilities at a cost of 
$1,320,893 (1,320.9 X $1,000 per square foot). Fountain Hills will use development fees to construct new 
fire facilities or to expand existing fire facilities. 
Figure F7: Projected Demand 
 
Demand Unit
Cost per Sq Ft
0.4591 Square Feet
per Person
0.4266 Square Feet
per Job
Residential
Nonresidential
Total
2025
27,883
7,501
12,800.0
3,200.0
16,000.0
2026
28,129
7,541
12,913.0
3,217.1
16,130.1
2027
28,375
7,581
13,026.0
3,234.3
16,260.3
2028
28,621
7,622
13,139.0
3,251.4
16,390.4
2029
28,868
7,662
13,252.0
3,268.6
16,520.6
2030
29,114
7,702
13,365.0
3,285.7
16,650.7
2031
29,360
7,751
13,478.0
3,306.7
16,784.8
2032
29,606
7,801
13,591.0
3,327.8
16,918.8
2033
29,852
7,850
13,704.0
3,348.8
17,052.8
2034
30,098
7,899
13,817.0
3,369.8
17,186.9
2035
30,345
7,948
13,930.0
3,390.9
17,320.9
10-Yr Increase
2,462
447
1,130.0
190.9
1,320.9
$1,130,025
$190,869
$1,320,893
Growth-Related Expenditures
Year
Population
Jobs
Square Feet
Fire Facilities
$1,000
Type of Infrastructure
Level of Service
Demand for Fire Facilities

Land Use Assumptions, Infrastructure Improvements Plan, and Development Fee Report 
Fountain Hills, Arizona 
25 
 
Fire Apparatus – Incremental Expansion 
Fountain Hills plans to maintain its existing level of service for fire apparatus over the next 10 years. Based 
on a projected population increase of 2,462 persons, future residential development demands 
approximately 0.6 fire apparatus (2,462 persons X 0.0002 units per person). With projected nonresidential 
growth of 447 jobs, future nonresidential development demands approximately 0.1 fire apparatus (447 
additional jobs X 0.0002 units per job). Future development demands approximately 0.7 fire apparatus at 
a cost of $304,218 (0.7 units X $460,625 per unit). Fountain Hills will use development fees to expand its 
fire apparatus fleet. 
Figure F8: Projected Demand 
 
Demand Unit
Cost per Unit
0.0002 Units
per Person
0.0002 Units
per Job
Residential
Nonresidential
Total
2025
27,883
7,501
6.4
1.6
8.0
2026
28,129
7,541
6.5
1.6
8.1
2027
28,375
7,581
6.5
1.6
8.1
2028
28,621
7,622
6.6
1.6
8.2
2029
28,868
7,662
6.6
1.6
8.3
2030
29,114
7,702
6.7
1.6
8.3
2031
29,360
7,751
6.7
1.7
8.4
2032
29,606
7,801
6.8
1.7
8.5
2033
29,852
7,850
6.9
1.7
8.5
2034
30,098
7,899
6.9
1.7
8.6
2035
30,345
7,948
7.0
1.7
8.7
10-Yr Increase
2,462
447
0.6
0.1
0.7
$260,259
$43,959
$304,218
Growth-Related Expenditures
Year
Population
Jobs
Units
Fire Apparatus
$460,625
Type of Infrastructure
Level of Service
Demand for Fire Apparatus

Land Use Assumptions, Infrastructure Improvements Plan, and Development Fee Report 
Fountain Hills, Arizona 
26 
 
Fire Equipment – Incremental Expansion 
Fountain Hills plans to maintain its existing level of service for fire equipment over the next 10 years. 
Based on a projected population increase of 2,462 persons, future residential development demands 
approximately 2.8 units of fire equipment (2,462 persons X 0.0011 units per person). With projected 
nonresidential growth of 447 jobs, future nonresidential development demands approximately 0.5 units 
of fire equipment (447 jobs X 0.0010 units per job). Future development demands approximately 3.2 units 
of fire equipment at a cost of $15,933 (3.2 units X $4,949 per unit). Fountain Hills will use development 
fees to expand its fire equipment inventory. 
Figure F9: Projected Demand 
 
 
 
 
Demand Unit
Cost per Unit
0.0011 Units
per Person
0.0010 Units
per Job
Residential
Nonresidential
Total
2025
27,883
7,501
31.2
7.8
39.0
2026
28,129
7,541
31.5
7.8
39.3
2027
28,375
7,581
31.8
7.9
39.6
2028
28,621
7,622
32.0
7.9
40.0
2029
28,868
7,662
32.3
8.0
40.3
2030
29,114
7,702
32.6
8.0
40.6
2031
29,360
7,751
32.9
8.1
40.9
2032
29,606
7,801
33.1
8.1
41.2
2033
29,852
7,850
33.4
8.2
41.6
2034
30,098
7,899
33.7
8.2
41.9
2035
30,345
7,948
34.0
8.3
42.2
10-Yr Increase
2,462
447
2.8
0.5
3.2
$13,631
$2,302
$15,933
Population
Jobs
Units
Year
Growth-Related Expenditures
Fire Equipment
$4,949
Type of Infrastructure
Level of Service
Demand for Fire Equipment

Land Use Assumptions, Infrastructure Improvements Plan, and Development Fee Report 
Fountain Hills, Arizona 
27 
 
FIRE FACILITIES DEVELOPMENT FEES 
Construction Sales Tax Credit/Offset 
The analysis does not include a revenue credit/offset, because Fountain Hills’ construction sales tax rate 
equals the amount of the sales tax rate imposed on the majority of other sales tax classifications. Appendix 
A contains the forecast of revenues required by Arizona’s Enabling Legislation (ARS § 9-463.05(E)(7)). 
Fire Facilities Development Fees 
Figure F10 includes infrastructure components and cost factors for fire facilities development fees. The 
cost per service unit is $584.17 per person and $549.05 per job. 
Residential development fees are calculated per housing unit and vary proportionately according to the 
number of persons per household. For a single-family unit, the fee of $1,303 is calculated using a cost of 
$584.17 per person multiplied by 2.23 persons per household. 
Nonresidential development fees are calculated per development unit and vary proportionately according 
to the number of jobs. For commercial development, the fee of $1,164 per development unit (1,000 
square feet) is calculated using a cost of $549.05 per job multiplied by 2.12 jobs per development unit. 
Figure F10: Fire Facilities Development Fees  
  
Fee Component
Cost per Person
Cost per Job
Fire Facilities
$459.06
$426.61
Fire Apparatus
$105.73
$98.25
Fire Equipment
$5.54
$5.15
Development Fee Report
$13.84
$19.04
Total
$584.17
$549.05
Development
Unit
Single Family
Housing Unit
2.23
$1,303
$122
$1,181
Multi-Family
Housing Unit
1.58
$923
$94
$829
Development
Unit
Industrial
1,000 Sq Ft
1.57
$862
$100
$762
Commercial
1,000 Sq Ft
2.12
$1,164
$140
$1,024
Office & Other Services
1,000 Sq Ft
3.26
$1,790
$180
$1,610
Institutional
1,000 Sq Ft
0.93
$511
$60
$451
1. See Land Use Assumptions
Development Type
Jobs 
per Unit1
Proposed
Fees
Current 
Fees
Difference
Nonresidential Fees per Development Unit
Residential Fees per Development Unit
Development Type
Persons
per Unit1
Proposed
Fees
Current 
Fees
Difference

Land Use Assumptions, Infrastructure Improvements Plan, and Development Fee Report 
Fountain Hills, Arizona 
28 
 
FIRE FACILITIES DEVELOPMENT FEE REVENUE 
Appendix A contains the forecast of revenues required by Arizona’s enabling legislation (ARS § 9-
463.05(E)(7)). In accordance with state law, this report includes an IIP for fire facilities needed to 
accommodate future development. Projected fee revenue shown in Figure F11 is based on the 
development projections in the Land Use Assumptions document and the updated development fees for 
fire facilities shown in Figure F10. If development occurs at a more rapid rate than projected, the demand 
for infrastructure will increase and development fee revenue will increase at a corresponding rate. If 
development occurs at a slower rate than projected, the demand for infrastructure will decrease along 
with development fee revenue. Projected development fee revenue equals $1,664,640 and projected 
expenditures equal $1,683,645. 
Figure F11: Fire Facilities Development Fee Revenue 
 
 
 
Growth Share
Existing Share
Total
Fire Facilities
$1,320,893
$0
$1,320,893
Fire Apparatus
$304,218
$0
$304,218
Fire Equipment
$15,933
$0
$15,933
Development Fee Report
$42,600
$0
$42,600
Total
$1,683,645
$0
$1,683,645
Single Family
Multi-Family
Industrial
Commercial
Office & Other
Institutional
$1,303
$923
$862
$1,164
$1,790
$511
per unit
per unit
per unit
per unit
per unit
per unit
Hsg Unit
Hsg Unit
KSF
KSF
KSF
KSF
Base
2025
10,138
4,375
1,162
1,408
1,575
770
Year 1
2026
10,208
4,432
1,162
1,410
1,584
772
Year 2
2027
10,278
4,489
1,162
1,413
1,593
774
Year 3
2028
10,348
4,546
1,162
1,415
1,602
776
Year 4
2029
10,418
4,603
1,162
1,417
1,611
778
Year 5
2030
10,488
4,660
1,162
1,419
1,620
779
Year 6
2031
10,558
4,717
1,162
1,438
1,622
781
Year 7
2032
10,628
4,774
1,162
1,457
1,623
782
Year 8
2033
10,698
4,831
1,162
1,476
1,625
784
Year 9
2034
10,768
4,888
1,162
1,495
1,626
785
Year 10
2035
10,838
4,945
1,162
1,514
1,628
786
700
570
0
106
53
16
$912,100
$526,110
$0
$123,384
$94,870
$8,176
$1,664,640
$1,683,645
Projected Fee Revenue
Total Expenditures
Projected Revenue
10-Year Increase
Year
Fee Component

Land Use Assumptions, Infrastructure Improvements Plan, and Development Fee Report 
Fountain Hills, Arizona 
29 
 
PARKS AND RECREATIONAL FACILITIES IIP 
ARS § 9-463.05 (T)(7)(g) defines the facilities and assets that can be included in the Parks and Recreational 
Facilities IIP: 
“Neighborhood parks and recreational facilities on real property up to thirty acres in area, or parks 
and recreational facilities larger than thirty acres if the facilities provide a direct benefit to the 
development. Park and recreational facilities do not include vehicles, equipment or that portion of 
any facility that is used for amusement parks, aquariums, aquatic centers, auditoriums, arenas, 
arts and cultural facilities, bandstand and orchestra facilities, bathhouses, boathouses, 
clubhouses, community centers greater than three thousand square feet in floor area, 
environmental education centers, equestrian facilities, golf course facilities, greenhouses, lakes, 
museums, theme parks, water reclamation or riparian areas, wetlands, zoo facilities or similar 
recreational facilities, but may include swimming pools.” 
The Parks and Recreational Facilities IIP includes components for developed park land, park amenities, 
and the cost of preparing the Parks and Recreational Facilities IIP and related Development Fee Report. 
The incremental expansion methodology is used for developed park land and park amenities. The plan-
based methodology is used for the Development Fee Report. 
SERVICE AREA 
Fountain Hills provides townwide access to parks and recreational facilities; therefore, there is a single 
service area for the Parks and Recreational Facilities IIP. 
PROPORTIONATE SHARE 
ARS § 9-463.05 (B)(3) states that the development fee shall not exceed a proportionate share of the cost 
of necessary public services needed to accommodate new development. The Parks and Recreational 
Facilities IIP and development fees allocate the capital cost of necessary public services between 
residential and nonresidential based on functional population. The Arizona Office of Economic 
Opportunity estimates Fountain Hills’ 2022 population equal to 23,972 persons. Based on 2022 estimates 
from the U.S. Census Bureau’s OnTheMap web application, 3,503 inflow commuters traveled to Fountain 
Hills for work. The proportionate share is based on cumulative impact hours per year. Potential impact to 
parks and recreational facilities equals 4,380 hours per year per resident and 500 hours per year per inflow 
commuter. For parks and recreational facilities, residential development generates 98 percent of demand 
and nonresidential development generates the remaining two percent of demand. 
Figure PR1: Proportionate Share 
 
Residential
23,972 persons1
4,380
104,997,360
98%
Nonresidential
3,503 inflow commuters2
500
1,751,500
2%
106,748,860
100%
1. Arizona Office of Economic Opportunity, 2022.
2. U.S. Census Bureau, OnTheMap Application and LEHD Origin-Destination Employment Statistics, Version 6.23.5, 2022.
Residential Impact: 12 hours per day X 365 days per year
Nonresidential Impact: 2 hours per day X 5 days per week X 50 weeks per year
Total
Development Type
Service Unit
Impact Hours 
per Year
Cumulative Impact 
Hours per Year
Proportionate 
Share

Land Use Assumptions, Infrastructure Improvements Plan, and Development Fee Report 
Fountain Hills, Arizona 
30 
 
RATIO OF SERVICE UNIT TO DEVELOPMENT UNIT 
ARS § 9-463.05(E)(4) requires: 
“A table establishing the specific level or quantity of use, consumption, generation or discharge of 
a service unit for each category of necessary public services or facility expansions and an 
equivalency or conversion table establishing the ratio of a service unit to various types of land 
uses, including residential, commercial and industrial.” 
Figure PR2 displays the demand indicators per development unit for residential and nonresidential 
development. For residential development, the table displays the number of persons per household for 
each development unit based on American Community Survey data shown in Figure L4. For nonresidential 
development, the table displays the number of jobs per development unit based on ITE employment 
density factors shown in Figure L6. 
Figure PR2: Ratio of Service Unit to Development Unit 
 
 
ANALYSIS OF CAPACITY, USAGE, AND COSTS OF EXISTING PUBLIC SERVICES  
ARS § 9-463.05(E)(1) requires: 
“A description of the existing necessary public services in the service area and the costs to upgrade, 
update, improve, expand, correct or replace those necessary public services to meet existing needs 
and usage and stricter safety, efficiency, environmental or regulatory standards, which shall be 
prepared by qualified professionals licensed in this state, as applicable.” 
ARS § 9-463.05(E)(2) requires: 
“An analysis of the total capacity, the level of current usage and commitments for usage of 
capacity of the existing necessary public services, which shall be prepared by qualified 
professionals licensed in this state, as applicable.” 
 
 
Development
Unit
Single Family
Housing Unit
2.23
Multi-Family
Housing Unit
1.58
Development
Unit
Industrial
1,000 Sq Ft
1.57
Commercial
1,000 Sq Ft
2.12
Office & Other Services
1,000 Sq Ft
3.26
Institutional
1,000 Sq Ft
0.93
1. U.S. Census Bureau, 2019-2023 American Community Survey 5-Year Estimates
2. Trip Generation, Institute of Transportation Engineers, 11th Edition (2021).
Residential Development
Development Type
Jobs
per Unit1
Development Type
Persons
per Unit1
Nonresidential Development

Land Use Assumptions, Infrastructure Improvements Plan, and Development Fee Report 
Fountain Hills, Arizona 
31 
 
Developed Park Land – Incremental Expansion 
Fountain Hills currently provides 951.4 total acres and 131.4 developed acres of parks to existing 
development. To comply with Arizona’s Enabling Legislation, the analysis excludes ineligible park land at 
Fountain Park (lake acreage) and Golden Eagle Trailhead (owned by HOA). The analysis uses 98.0 acres of 
developed park land to calculate the level of service. Due to the availability of undeveloped land, Fountain 
Hills does not plan to acquire additional park land. Fountain Hills will develop existing park land or other 
town sites during the 10-year IIP timeframe. To allocate the proportionate share of demand for developed 
park land to residential and nonresidential development, this analysis uses the proportionate share shown 
in Figure PR1. The existing LOS for residential development is 0.00344 eligible acres per person (98 eligible 
acres X 98 percent residential share / 27,883 persons). For nonresidential development, the existing LOS 
is 0.00026 eligible acres per job (98 eligible acres X two percent nonresidential share / 7,501 jobs).  
The analysis includes a cost of $40,000 per acre for development costs not captured in the park amenities 
component (site development, grading, utilities, etc.). For developed park land, the cost is $137.78 per 
acre (0.00344 eligible acres per person X $40,000 per acre) and $10.45 per job (0.00026 eligible acres per 
job X $40,000 per acre). 
Figure PR3: Existing Level of Service 
 
Description
Total Acres
Developed Acres
Eligible Acres
Avenue Linear Park
3.0
3.0
3.0
Desert Botanical Garden
8.0
8.0
8.0
Desert Vista Park
12.0
12.0
12.0
Fountain Park
65.0
65.0
32.0
Four Peaks Park
16.0
16.0
16.0
Golden Eagle Park
25.0
25.0
25.0
Golden Eagle Trailhead
0.4
0.4
0.0
McDowell Mtn. Preserve
822.0
2.0
2.0
Total
951.4
131.4
98.0
Developed Cost per Acre1
$40,000
Existing Eligible Acres
98.0
Residential Share
98%
2025 Population
27,883
Eligible Acres per Person
0.00344
Cost per Person
$137.78
Nonresidential Share
2%
2025 Jobs
7,501
Eligible Acres per Job
0.00026
Cost per Job
$10.45
Source: Fountain Hills Parks and Recreation Department
1. Includes infrastructure costs but excludes acquisition costs.
Cost Factors
Level-of-Service (LOS) Standards
Residential
Nonresidential

Land Use Assumptions, Infrastructure Improvements Plan, and Development Fee Report 
Fountain Hills, Arizona 
32 
 
Park Amenities – Incremental Expansion 
Fountain Hills currently provides 1,052 park amenities and plans to construct additional park amenities to 
serve future development. The total cost of existing park amenities is $46,811,800, and the analysis uses 
the average cost of $44,498 per unit as a proxy for future growth-related park amenity costs. Figure PR5 
includes a detailed list of existing park amenities. 
To allocate the proportionate share of demand for park amenities to residential and nonresidential 
development, this analysis uses the proportionate share shown in Figure PR1. The existing LOS for 
residential development is 0.0370 units per person (1,052 units X 98 percent residential share / 27,883 
persons). For nonresidential development, the existing LOS is 0.0028 units per job (1,052 units X two 
percent nonresidential share / 7,501 jobs). 
Based on the cost of Fountain Hills’ existing park amenities, the average cost for park amenities is $44,498 
per unit ($46,811,800 total cost / 1,052 units). For park amenities, the cost is $1,645.29 per person (0.0370 
units per person X $44,498 per unit) and $124.81 per job (0.0028 units per job X $44,498 per unit). 
Figure PR4: Existing Level of Service 
 
 
Average Cost per Unit
$44,498
Existing Units
1,052
Residential Share
98%
2025 Population
27,883
Units per Person
0.0370
Cost per Person
$1,645.29
Nonresidential Share
2%
2025 Jobs
7,501
Units per Job
0.0028
Cost per Job
$124.81
Source: Fountain Hills Parks and Recreation Department
Nonresidential
Level-of-Service (LOS) Standards
Residential
Cost Factors

Land Use Assumptions, Infrastructure Improvements Plan, and Development Fee Report 
Fountain Hills, Arizona 
33 
 
Figure PR5: Existing Park Amenities 
 
Description
Units
Unit Cost
Total Cost
Baseball/Softball Field
6
$725,000
$4,350,000
Basketball Court
3
$120,000
$360,000
Bench
101
$2,500
$252,500
Bike Rack
46
$300
$13,800
Bleachers
29
$3,000
$87,000
Bridge (Pedestrian)
2
$1,000,000
$2,000,000
Building
11
$400,000
$4,400,000
Disc Golf Course
1
$15,300
$15,300
Dog Park
1
$650,000
$650,000
Drinking Fountain
22
$3,000
$66,000
Dugout Bench
15
$1,000
$15,000
Entry Monument Signage
9
$20,000
$180,000
Exercise Equipment Area
2
$40,000
$80,000
FIT Trail Trailhead
2
$100,000
$200,000
Grill
12
$400
$4,800
Horseshoe Pit
1
$2,500
$2,500
Interpretive Signage
14
$1,000
$14,000
Light Bollard
291
$2,000
$582,000
Multi-Use Sports Field
4
$475,000
$1,900,000
Parking Lot
11
$526,000
$5,786,000
Passive Lawn/Recreation
14
$475,000
$6,650,000
Pet Station
21
$300
$6,300
Pickleball Court
6
$70,000
$420,000
Picnic Table
110
$3,500
$385,000
Playground (2-5 years)
4
$125,000
$500,000
Playground (5+ years)
4
$230,000
$920,000
Ramada (with picnic table)
21
$84,000
$1,764,000
Recycle
24
$600
$14,400
Restroom
21
$420,000
$8,820,000
Sand Volleyball
2
$24,000
$48,000
Scoreboard
4
$8,000
$32,000
Shade Structure <100 ksf
18
$50,000
$900,000
Shade Structure >100 ksf
5
$100,000
$500,000
Shower
1
$4,000
$4,000
Sign Kiosk
11
$4,000
$44,000
Skate Park
1
$1,089,000
$1,089,000
Soccer Goal
6
$2,500
$15,000
Specialty Play
2
$100,000
$200,000
Splash Pad
1
$860,000
$860,000
Tennis Court
6
$170,000
$1,020,000
Trash Receptacle
166
$600
$99,600
Veteran's Memorial
1
$900,000
$900,000
Walking Track/Trail
6
$95,000
$570,000
Water Feature
6
$15,000
$90,000
Wayfinding Signage
8
$200
$1,600
Total
1,052
$44,498
$46,811,800
Source: Fountain Hills Parks and Recreation Department

Land Use Assumptions, Infrastructure Improvements Plan, and Development Fee Report 
Fountain Hills, Arizona 
34 
 
Development Fee Report – Plan-Based 
The 2025 cost to prepare the Parks and Recreational Facilities IIP and related development fee report 
equals $21,300. Fountain Hills plans to update its report every five years, so the 10-year cost is $42,600. 
Based on the 10-year cost, proportionate share, and 10-year projections of future development from the 
Land Use Assumptions document, the cost per service unit is $16.96 per person and $1.90 per job. 
Figure PR6: IIP and Development Fee Report 
 
PROJECTED DEMAND FOR SERVICES AND COSTS 
ARS § 9-463.05(E)(5) requires: 
“The total number of projected service units necessitated by and attributable to new development 
in the service area based on the approved land use assumptions and calculated pursuant to 
generally accepted engineering and planning criteria.” 
ARS § 9-463.05(E)(6) requires: 
“The projected demand for necessary public services or facility expansions required by new service 
units for a period not to exceed ten years.” 
As shown in the Land Use Assumptions document, projected development during the next 10 years 
includes population growth of 2,462 persons and employment growth of 447 jobs. To maintain the 
existing levels of service, Fountain Hills needs to develop approximately 8.6 acres of park land and 
construct approximately 92 park amenities over the next 10 years. The following pages include a more 
detailed projection of demand for services and costs for the Parks and Recreational Facilities IIP. 
 
 
Necessary 
Public Service
2025 
Study Update
10-Year Cost
(2 Updates)
Service 
Unit
10-Year 
Change
Cost per 
Service Unit
Residential
80%
Population
2,462
$13.84
Nonresidential
20%
Jobs
447
$19.04
Residential
98%
Population
2,462
$16.96
Nonresidential
2%
Jobs
447
$1.90
Street
$21,350
$42,700
All Development
100%
VMT
32,209
$1.33
Total
$63,950
$127,900
Proportionate Share
Parks and 
Recreational
$42,600
Fire
$42,600
$21,300
$21,300

Land Use Assumptions, Infrastructure Improvements Plan, and Development Fee Report 
Fountain Hills, Arizona 
35 
 
Developed Park Land – Incremental Expansion 
Fountain Hills plans to maintain its existing level of service for developed park land over the next 10 years. 
Based on a projected population increase of 2,462 persons, future residential development demands an 
additional 8.5 acres (2,462 additional persons X 0.00344 eligible acres per person). With projected 
employment growth of 447 jobs, future nonresidential development demands an additional 0.1 acres (447 
additional jobs X 0.00026 eligible acres per job). Future development demands 8.6 additional acres at a 
cost of $343,825 (8.6 acres X $40,000 per acre). Fountain Hills will use development fees to develop 
additional park land. 
Figure PR7: Projected Demand 
 
Demand Unit
Cost per Acre
0.00344 Eligible Acres
per Person
0.00026 Eligible Acres
per Job
Residential
Nonresidential
Total
2025
27,883
7,501
96.0
2.0
98.0
2026
28,129
7,541
96.9
2.0
98.9
2027
28,375
7,581
97.7
2.0
99.7
2028
28,621
7,622
98.6
2.0
100.6
2029
28,868
7,662
99.4
2.0
101.4
2030
29,114
7,702
100.3
2.0
102.3
2031
29,360
7,751
101.1
2.0
103.2
2032
29,606
7,801
102.0
2.0
104.0
2033
29,852
7,850
102.8
2.1
104.9
2034
30,098
7,899
103.7
2.1
105.7
2035
30,345
7,948
104.5
2.1
106.6
10-Yr Increase
2,462
447
8.5
0.1
8.6
$339,149
$4,676
$343,825
Growth-Related Expenditures
Type of Infrastructure
Level of Service
Developed Park Land
$40,000
Demand for Developed Park Land
Year
Population
Jobs
Eligible Acres

Land Use Assumptions, Infrastructure Improvements Plan, and Development Fee Report 
Fountain Hills, Arizona 
36 
 
Park Amenities – Incremental Expansion 
Fountain Hills plans to maintain its existing level of service for park amenities over the next 10 years. Based 
on a projected population increase of 2,462 persons, future residential development demands an 
additional 91.0 park amenities (2,462 additional persons X 0.0370 units per person). With projected 
employment growth of 447 jobs, future nonresidential development demands an additional 1.3 park 
amenities (447 additional jobs X 0.0028 units per job). Future development demands 92.3 additional park 
amenities at a cost of $4,105,884 (92.3 units X $44,498 per unit). Fountain Hills will use development fees 
to construct additional park amenities. 
Figure PR8: Projected Demand 
 
 
 
Demand Unit
Cost per Unit
0.0370 Units
per Person
0.0028 Units
per Job
Residential
Nonresidential
Total
2025
27,883
7,501
1,031.0
21.0
1,052.0
2026
28,129
7,541
1,040.1
21.2
1,061.2
2027
28,375
7,581
1,049.2
21.3
1,070.4
2028
28,621
7,622
1,058.3
21.4
1,079.6
2029
28,868
7,662
1,067.4
21.5
1,088.9
2030
29,114
7,702
1,076.5
21.6
1,098.1
2031
29,360
7,751
1,085.6
21.7
1,107.3
2032
29,606
7,801
1,094.7
21.9
1,116.6
2033
29,852
7,850
1,103.8
22.0
1,125.8
2034
30,098
7,899
1,112.9
22.2
1,135.0
2035
30,345
7,948
1,122.0
22.3
1,144.3
10-Yr Increase
2,462
447
91.0
1.3
92.3
$4,050,041
$55,843
$4,105,884
Demand for Park Amenities
Year
Population
Jobs
Units
Park Amenities
$44,498
Type of Infrastructure
Level of Service
Growth-Related Expenditures

Land Use Assumptions, Infrastructure Improvements Plan, and Development Fee Report 
Fountain Hills, Arizona 
37 
 
PARKS AND RECREATIONAL FACILITIES DEVELOPMENT FEES 
Construction Sales Tax Credit/Offset 
The analysis does not include a revenue credit/offset, because Fountain Hills’ construction sales tax rate 
equals the amount of the sales tax rate imposed on the majority of other sales tax classifications. Appendix 
A contains the forecast of revenues required by Arizona’s Enabling Legislation (ARS § 9-463.05(E)(7)). 
Parks and Recreational Facilities Development Fees 
Figure PR9 includes infrastructure components and cost factors for parks and recreational facilities 
development fees. The cost per service unit is $1,800.03 per person and $137.16 per job. 
Residential development fees are calculated per housing unit and vary proportionately according to the 
number of persons per household. For a single-family unit, the fee of $4,014 is calculated using a cost of 
$1,800.03 per person multiplied by 2.23 persons per household. 
Nonresidential development fees are calculated per development unit and vary proportionately according 
to the number of jobs. For commercial development, the fee of $291 per development unit (1,000 square 
feet) is calculated using a cost of $137.16 per job multiplied by 2.12 jobs per development unit. 
Figure PR9: Parks and Recreational Facilities Development Fees 
 
Fee Component
Cost per Person
Cost per Job
Developed Park Land
$137.78
$10.45
Park Amenities
$1,645.29
$124.81
Development Fee Report
$16.96
$1.90
Total
$1,800.03
$137.16
Development
Unit
Single Family
Housing Unit
2.23
$4,014
$1,916
$2,098
Multi-Family
Housing Unit
1.58
$2,844
$1,479
$1,365
Development
Unit
Industrial
1,000 Sq Ft
1.57
$215
$560
($345)
Commercial
1,000 Sq Ft
2.12
$291
$810
($519)
Office & Other Services
1,000 Sq Ft
3.26
$447
$1,030
($583)
Institutional
1,000 Sq Ft
0.93
$128
$320
($192)
1. See Land Use Assumptions
Residential Fees per Development Unit
Development Type
Development Type
Current 
Fees
Difference
Current 
Fees
Difference
Nonresidential Fees per Development Unit
Jobs 
per Unit1
Proposed
Fees
Persons
per Unit1
Proposed
Fees

Land Use Assumptions, Infrastructure Improvements Plan, and Development Fee Report 
Fountain Hills, Arizona 
38 
 
PARKS AND RECREATIONAL FACILITIES DEVELOPMENT FEE REVENUE 
Appendix A contains the forecast of revenues required by Arizona’s Enabling Legislation (ARS § 9-
463.05(E)(7)). In accordance with state law, this report includes an IIP for parks and recreational facilities 
needed to accommodate new development. Projected fee revenue shown in Figure PR10 is based on the 
development projections in the Land Use Assumptions document and the updated development fees for 
parks and recreational facilities shown in Figure PR9. If development occurs at a more rapid rate than 
projected, the demand for infrastructure will increase and development fee revenue will increase at a 
corresponding rate. If development occurs at a slower rate than projected, the demand for infrastructure 
will decrease along with development fee revenue. Projected development fee revenue equals 
$4,487,465 and projected expenditures equal $4,492,309. 
Figure PR10: Parks and Recreational Facilities Development Fee Revenue 
 
 
 
Growth Share
Existing Share
Total
Developed Park Land
$343,825
$0
$343,825
Park Amenities
$4,105,884
$0
$4,105,884
Development Fee Report
$42,600
$0
$42,600
Total
$4,492,309
$0
$4,492,309
Single Family
Multi-Family
Industrial
Commercial
Office & Other
Institutional
$4,014
$2,844
$215
$291
$447
$128
per unit
per unit
per unit
per unit
per unit
per unit
Hsg Unit
Hsg Unit
KSF
KSF
KSF
KSF
Base
2025
10,138
4,375
1,162
1,408
1,575
770
Year 1
2026
10,208
4,432
1,162
1,410
1,584
772
Year 2
2027
10,278
4,489
1,162
1,413
1,593
774
Year 3
2028
10,348
4,546
1,162
1,415
1,602
776
Year 4
2029
10,418
4,603
1,162
1,417
1,611
778
Year 5
2030
10,488
4,660
1,162
1,419
1,620
779
Year 6
2031
10,558
4,717
1,162
1,438
1,622
781
Year 7
2032
10,628
4,774
1,162
1,457
1,623
782
Year 8
2033
10,698
4,831
1,162
1,476
1,625
784
Year 9
2034
10,768
4,888
1,162
1,495
1,626
785
Year 10
2035
10,838
4,945
1,162
1,514
1,628
786
700
570
0
106
53
16
$2,809,800
$1,621,080
$0
$30,846
$23,691
$2,048
$4,487,465
$4,492,309
Fee Component
Year
10-Year Increase
Projected Revenue
Projected Fee Revenue
Total Expenditures

Land Use Assumptions, Infrastructure Improvements Plan, and Development Fee Report 
Fountain Hills, Arizona 
39 
 
STREET FACILITIES IIP 
ARS § 9-463.05 (T)(7)(e) defines the eligible facilities and assets for the Street Facilities IIP: 
“Street facilities located in the service area, including arterial or collector streets or roads that 
have been designated on an officially adopted plan of the municipality, traffic signals and rights-
of-way and improvements thereon.” 
The Street Facilities IIP includes components for street improvements and the cost of preparing the Street 
Facilities IIP and related Development Fee Report. The plan-based methodology is used for street 
improvements and the Development Fee Report. 
SERVICE AREA 
Fountain Hills provides a transportation network within the town limits; therefore, there is a single service 
area for the Street Facilities IIP. 
PROPORTIONATE SHARE 
ARS § 9-463.05 (B)(3) states that the development fee shall not exceed a proportionate share of the cost 
of necessary public services needed to accommodate new development. The Street Facilities IIP and 
development fees will allocate the cost of necessary public services between residential and 
nonresidential based on trip generation rates, trip adjustment factors, and trip lengths.

Land Use Assumptions, Infrastructure Improvements Plan, and Development Fee Report 
Fountain Hills, Arizona 
40 
 
RATIO OF SERVICE UNIT TO DEVELOPMENT UNIT 
ARS § 9-463.05(E)(4) requires: 
“A table establishing the specific level or quantity of use, consumption, generation or discharge of 
a service unit for each category of necessary public services or facility expansions and an 
equivalency or conversion table establishing the ratio of a service unit to various types of land 
uses, including residential, commercial and industrial.” 
Fountain Hills will use vehicle miles traveled (VMT) as the demand units for street facilities fees. 
Components used to determine VMT include average weekday vehicle trip generation rates, adjustments 
for commuting patterns and pass-by trips, and trip length weighting factors. 
Residential Trip Generation Rates 
As an alternative to simply using national average trip generation rates for residential development, 
published by the Institute of Transportation Engineers (ITE), TischlerBise calculates custom trip rates using 
local demographic data. Key inputs needed for the analysis, including average number of persons and 
vehicles available per housing unit, are available from American Community Survey (ACS) data. Shown in 
Figure S1, custom trip generation rates for Fountain Hills vary slightly from the national averages. Single-
family residential development is expected to generate 8.03 average weekday vehicle trip ends per 
dwelling – compared to the national average of 9.43 (ITE 210). Multi-family residential development is 
expected to generate 3.89 average weekday vehicle trip ends per dwelling, which is lower than the 
national average of 4.54 (ITE 221). 
Figure S1: Average Weekday Vehicle Trip Ends by Housing Type 
 
Owner-Occupied
17,994
8,342
886
9,228
1.95
Renter-Occupied
2,991
907
942
1,849
1.62
Total
20,985
9,249
1,828
11,077
1.89
Persons in
Trip
Vehicles by
Trip
Average
Housing
Households3
Ends4
Type of Unit
Ends5
Trip Ends
Units6
Local
National7
Single-Family
20,644
57,498
17,734
115,580
86,539
10,781
8.03
9.43
Multi-Family
2,894
6,546
3,251
13,104
9,825
2,528
3.89
4.54
Total
23,538
64,045
20,985
128,685
96,365
13,309
7.24
1. Vehicles available by tenure from Table B25046, American Community Survey, 2023 5-Year Estimates.
2. Households by tenure and units in structure from Table B25032, American Community Survey, 2023 5-Year Estimates.
3. Total population in households from Table B25033, American Community Survey, 2023 5-Year Estimates.
6. Housing units from Table B25024, American Community Survey, 2023 5-Year Estimates.
7. Trip Generation, Institute of Transportation Engineers, 11th Edition (2021).
Households by Structure Type2
Tenure by Units
in Structure
Vehicles 
Available1
Single-Family Multi-Family
Total
Vehicles per 
HH by Tenure
Units in Structure
Trip Ends per Housing Unit
4. Vehicle trips ends based on persons using formulas from ITE Trip Generation . For single-family housing (ITE 210), the fitted curve equation is 
EXP(0.89*LN(persons)+1.72) [ITE 2017]. To approximate the average population of the ITE studies, persons were divided by 37 and the equation result 
multiplied by 37. For multi-family housing (ITE 221), the fitted curve equation is (2.29*persons)-81.02 [ITE 2017].
5. Vehicle trip ends based on vehicles available using formulas from ITE Trip Generation . For single-family housing (ITE 210), the fitted curve equation is 
EXP(0.99*LN(vehicles)+1.93) [ITE 2017]. To approximate the average number of vehicles in the ITE studies, vehicles available were divided by 69 and the 
equation result multiplied by 69. For multi-family housing (ITE 220), the fitted curve equation is (3.94*vehicles)+293.58 [ITE 2012].

Land Use Assumptions, Infrastructure Improvements Plan, and Development Fee Report 
Fountain Hills, Arizona 
41 
 
Nonresidential Trip Generation Rates 
For nonresidential development, TischlerBise uses trip generation rates published in Trip Generation, 
Institute of Transportation Engineers, 11th Edition (2021). The prototype for industrial development is 
Light Industrial (ITE 110) which generates 4.87 average weekday vehicle trip ends per 1,000 square feet 
of floor area. For office development, the prototype is General Office (ITE 710), and it generates 10.84 
average weekday vehicle trip ends per 1,000 square feet of floor area. For institutional development, the 
prototype is Government Office (ITE 730), and it generates 22.59 average weekday vehicle trip ends per 
1,000 square feet of floor area. The prototype for commercial development is Shopping Center (ITE 820) 
which generates 37.01 average weekday vehicle trips per 1,000 square feet of floor area.  
Figure S2: Average Weekday Vehicle Trip Ends by Land Use 
 
Trip Rate Adjustments 
To calculate street facilities fees, trip generation rates require an adjustment factor to avoid double 
counting each trip at both the origin and destination points. Therefore, the basic trip adjustment factor is 
50 percent. As discussed further in this section, the development fee methodology includes additional 
adjustments to make the fees proportionate to the infrastructure demand for particular types of 
development. 
Commuter Trip Adjustment 
Residential development has a larger trip adjustment factor of 66 percent to account for commuters 
leaving Fountain Hills for work. According to the 2022 National Household Travel Survey (see Table 8-2) 
weekday work trips are typically 36 percent of production trips (i.e., all out-bound trips, which are 50 
percent of all trip ends). As shown in Figure S3, the U.S. Census Bureau’s OnTheMap web application 
indicates 86 percent of resident workers traveled outside of Fountain Hills for work in 2022. In 
combination, these factors (0.36 x 0.50 x 0.86 = 0.16) support the additional 16 percent allocation of trips 
to residential development. 
ITE
Demand
Wkdy Trip Ends Wkdy Trip Ends
Emp Per
Square Feet
Code
Unit
Per Dmd Unit1
Per Employee1
Dmd Unit
Per Employee
110
Light Industrial
1,000 Sq Ft
4.87
3.10
1.57
637
150
Warehousing
1,000 Sq Ft
1.71
5.05
0.34
2,953
254
Assisted Living
bed
2.60
4.24
0.61
n/a
310
Hotel
room
7.99
14.34
0.56
n/a
520
Elementary School
1,000 Sq Ft
19.52
21.00
0.93
1,076
610
Hospital
1,000 Sq Ft
10.77
3.77
2.86
350
620
Nursing Home
bed
3.06
3.31
0.92
n/a
710
General Office (avg size)
1,000 Sq Ft
10.84
3.33
3.26
307
720
Medical-Dental Office
1,000 Sq Ft
36.00
8.71
4.13
242
730
Government Office
1,000 Sq Ft
22.59
7.45
3.03
330
770
Business Park
1,000 Sq Ft
12.44
4.04
3.08
325
820
Shopping Center (avg size)
1,000 Sq Ft
37.01
17.42
2.12
471
1. Trip Generation, Institute of Transportation Engineers, 11th Edition (2021).
Land Use / Size

Land Use Assumptions, Infrastructure Improvements Plan, and Development Fee Report 
Fountain Hills, Arizona 
42 
 
Figure S3: Commuter Trip Adjustment 
 
Adjustment for Pass-By Trips 
For commercial development, the trip adjustment factor is less than 50 percent because this type of 
development attracts vehicles as they pass by on arterial and collector roads. For example, when someone 
stops at a convenience store on the way home from work, the convenience store is not the primary 
destination. For the average shopping center, ITE data indicate 34 percent of the vehicles that enter are 
passing by on their way to some other primary destination. The remaining 66 percent of attraction trips 
have the commercial site as their primary destination. Because attraction trips are half of all trips, the trip 
adjustment factor is 66 percent multiplied by 50 percent, or approximately 33 percent of the trip ends. 
Average Weekday Vehicle Trips 
Shown below in Figure S4, multiplying average weekday vehicle trip ends and trip adjustment factors by 
existing development units provides the average weekday vehicle trips generated by existing 
development. As shown below, existing development in Fountain Hills generates 102,221 vehicle trips on 
an average weekday. 
Figure S4: Average Weekday Vehicle Trips by Land Use 
  
  Employed Residents
9,263
  Residents Living and Working in Fountain Hills
1,276
  Residents Commuting Outside Fountain Hills for Work
7,987
Percent Commuting out of Fountain Hills
86%
Additional Production Trips1
16%
Residential Trip Adjustment Factor
66%
Source: U.S. Census Bureau, OnTheMap Application (version 6.23.5) and LEHD Origin-Destination Employment Statistics, 2022.
1. According to the 2022 National Household Travel Survey* (see Table 8-2), home-based work trips are typically 36 percent of
“production” trips, in other words, out-bound trips (which are 50 percent of all trip ends). Also, LED OnTheMap data from 2022
indicate that 86 percent of Fountain Hills' workers travel outside the city for work. In combination, these factors (0.36 x 0.50 x
0.86 = 0.16) account for 16 percent of additional production trips. The total adjustment factor for residential includes attraction
trips (50 percent of trip ends) plus the journey-to-work commuting adjustment (16 percent of production trips) for a total of 66
percent. *http://nhts.ornl.gov/publications; Summary of Travel Trends: 2022 National Household Travel Survey (Table 8-2. Travel
Characteristics for Weekday Versus Weekend)
Trip Adjustment Factor for Commuters
Development
Dev
ITE
Avg Wkday
Trip
2025
2025
Type
Unit
Code
VTE
Adjustment
Dev Units
Veh Trips
Single Family
HU
210
8.03
66%
10,138
53,729
Multi-Family
HU
220
3.89
66%
4,375
11,232
Industrial
KSF
110
4.87
50%
1,162
2,830
Commercial
KSF
820
37.01
33%
1,408
17,196
Office & Other Services
KSF
710
10.84
50%
1,575
8,535
Institutional
KSF
730
22.59
50%
770
8,698
Total
102,221

Land Use Assumptions, Infrastructure Improvements Plan, and Development Fee Report 
Fountain Hills, Arizona 
43 
 
Trip Length Weighting Factor 
The street facilities development fee methodology includes a percentage adjustment, or weighting factor, 
to account for trip length variation by type of land use. As documented in Table 3-4, Table 3-5, and Table 
3-6 of the 2022 National Household Travel Survey, vehicle trips from residential development are 
approximately 120 percent of the average trip length. The residential trip length adjustment factor 
includes data on home-based work trips, social, and recreational purposes. Conversely, shopping trips 
associated with commercial development are roughly 50 percent of the average trip length while other 
nonresidential development typically accounts for trips that are 76 percent of the average for all trips. 
Local Vehicle Miles Traveled 
Figure S5 displays the demand indicators per development unit for residential and nonresidential 
development. For residential development, the table displays VMT per household for each development 
unit. For nonresidential development, the table displays the number of VMT per development unit. 
Figure S5: Ratio of Service Unit to Development Unit 
  
PROJECTED DEMAND FOR SERVICES AND COSTS 
ARS § 9-463.05(E)(5) requires: 
“The total number of projected service units necessitated by and attributable to new development 
in the service area based on the approved land use assumptions and calculated pursuant to 
generally accepted engineering and planning criteria.” 
ARS § 9-463.05(E)(6) requires: 
“The projected demand for necessary public services or facility expansions required by new service 
units for a period not to exceed ten years.” 
Development
Average Trip
Trip Length
VMT
Unit
Length (miles)
Adjustment3
per Unit
Single Family
Housing Unit
8.03
66%
4.4653
120%
28.40
Multi-Family
Housing Unit
3.89
66%
4.4653
120%
13.76
Development
Average Trip
Trip Length
VMT
Unit
Length (miles)
Adjustment3
per Unit
Industrial
1,000 Sq Ft
4.87
50%
4.4653
76%
8.26
Commercial
1,000 Sq Ft
37.01
33%
4.4653
50%
27.27
Office & Other Services
1,000 Sq Ft
10.84
50%
4.4653
76%
18.39
Institutional
1,000 Sq Ft
19.52
50%
4.4653
76%
33.12
1. TischlerBise calculation.
3. 2022 National Household Travel Survey.
4. Trip Generation, Institute of Transportation Engineers, 11th Edition (2021).
Development Type
AWVTE
per Unit4
Trip 
Adjustment4
2. TischlerBise calculation based on OnTheMap Application (version 6.25.1) and LEHD Origin-Destination Employment Statistics, 2022; and 2022 
National Household Travel Survey.
Residential Development
Development Type
AWVTE 
per unit1
Trip 
Adjustment2
Nonresidential Development

Land Use Assumptions, Infrastructure Improvements Plan, and Development Fee Report 
Fountain Hills, Arizona 
44 
 
According to recent estimates, Fountain Hills currently provides 70.0 lane miles of arterials. Using a 
capacity standard of 8,175 vehicles per lane mile, the existing arterial network provides 572,250 vehicle 
miles of capacity (70.0 lane miles X 8,175 vehicles per lane mile). To derive the average utilization (i.e., 
average trip length expressed in miles) of the major streets, divide vehicle miles of capacity by vehicle 
trips attracted to development in Fountain Hills. As shown in Figure S6, existing development currently 
attracts 102,221 average weekday vehicle trips. Dividing 572,250 vehicle miles of capacity by existing 
average weekday vehicle trips yields an unweighted-average trip length of approximately 5.598 miles. The 
calibration of average trip length includes the same adjustment factors used in the development fee 
calculations (i.e., commuter trip adjustment, pass-by trip adjustment, and average trip length 
adjustment). With these refinements, the weighted-average trip length is 5.621 miles. 
As shown in the Land Use Assumptions document, 10-year projected growth includes 1,270 housing units 
and 175,000 square feet of nonresidential floor area. Based on the trip generation factors discussed in 
this section, projected development generates an additional 40,546 VMT over the next 10 years. Shown 
below in Figure S6, Fountain Hills will need to construct approximately 4.96 lane miles of street 
improvements to maintain the existing LOS over the next 10 years. 
Figure S6: Projected Travel Demand 
  
Development
Dev
ITE
Weekday
Local
Trip
Weekday
Type
Unit
Code
Veh Trips
Trip Length
Length Adj
VMT
Single Family
HU
210
5.30
5.6210
120%
35.75
Multi-Family
HU
220
2.57
5.6210
120%
17.32
Industrial
KSF
110
2.44
5.6210
76%
10.40
Commercial
KSF
820
12.21
5.6210
50%
34.33
Office & Other Services
KSF
710
5.42
5.6210
76%
23.15
Institutional
KSF
730
11.30
5.6210
76%
48.25
VMC Per Lane Mile
8,175
Average Trip Length (miles)
5.6210
Base
1
2
3
4
5
10
10-Year
2025
2026
2027
2028
2029
2030
2035
Increase
Single-Family Units
10,138
10,208
10,278
10,348
10,418
10,488
10,838
700
Multi-Family Units
4,375
4,432
4,489
4,546
4,603
4,660
4,945
570
Industrial KSF
1,162
1,162
1,162
1,162
1,162
1,162
1,162
0
Commercial KSF
1,408
1,410
1,413
1,415
1,417
1,419
1,514
106
Office & Other KSF
1,575
1,584
1,593
1,602
1,611
1,620
1,628
53
Institutional KSF
770
772
774
776
778
779
786
16
Single Family Trips
53,729
54,100
54,471
54,842
55,213
55,584
57,439
3,710
Multi-Family Trips
11,232
11,379
11,525
11,671
11,818
11,964
12,696
1,463
Residential Trips
64,962
65,479
65,996
66,514
67,031
67,548
70,135
5,173
Industrial Trips
2,830
2,830
2,830
2,830
2,830
2,830
2,830
0
Commercial Trips
17,196
17,224
17,252
17,280
17,308
17,336
18,487
1,290
Office & Other Trips
8,535
8,584
8,634
8,683
8,732
8,782
8,823
288
Institutional Trips
8,698
8,719
8,740
8,761
8,782
8,803
8,883
185
Nonresidential Trips
37,259
37,357
37,456
37,554
37,653
37,751
39,023
1,764
Total Vehicle Trips
102,221
102,836
103,452
104,068
104,684
105,299
109,158
6,937
VMT
572,217
576,086
579,955
583,824
587,693
591,562
612,763
40,546
Lane Miles
70.00
70.47
70.94
71.42
71.89
72.36
74.96
4.96
Fountain Hills, Arizona

Land Use Assumptions, Infrastructure Improvements Plan, and Development Fee Report 
Fountain Hills, Arizona 
45 
 
Calibrated Travel Demand Model 
Fountain Hills plans to construct 3.94 lane miles of arterials over the next 10 years to serve future 
development. Since Fountain Hills plans to build fewer than 4.96 lane miles, as shown in Figure S6, the 
average trip length of 5.6210 miles is adjusted until the 10-year demand for arterials equals 3.94 lane 
miles – resulting in an average trip length of 4.4653 miles on the planned street improvements. The 10-
year increase in VMT on the planned street improvements equals 32,209 VMT. 
Figure S7: Calibrated Travel Demand 
 
 
 
Development
Dev
ITE
Weekday
Local
Trip
Weekday
Type
Unit
Code
Veh Trips
Trip Length
Length Adj
VMT
Single Family
HU
210
5.30
4.4653
120%
28.40
Multi-Family
HU
220
2.57
4.4653
120%
13.76
Industrial
KSF
110
2.44
4.4653
76%
8.26
Commercial
KSF
820
12.21
4.4653
50%
27.27
Office & Other Services
KSF
710
5.42
4.4653
76%
18.39
Institutional
KSF
730
11.30
4.4653
76%
38.33
VMC Per Lane Mile
8,175
Average Trip Length (miles)
4.4653
Base
1
2
3
4
5
10
10-Year
2025
2026
2027
2028
2029
2030
2035
Increase
Single-Family Units
10,138
10,208
10,278
10,348
10,418
10,488
10,838
700
Multi-Family Units
4,375
4,432
4,489
4,546
4,603
4,660
4,945
570
Industrial KSF
1,162
1,162
1,162
1,162
1,162
1,162
1,162
0
Commercial KSF
1,408
1,410
1,413
1,415
1,417
1,419
1,514
106
Office & Other KSF
1,575
1,584
1,593
1,602
1,611
1,620
1,628
53
Institutional KSF
770
772
774
776
778
779
786
16
Single Family Trips
53,729
54,100
54,471
54,842
55,213
55,584
57,439
3,710
Multi-Family Trips
11,232
11,379
11,525
11,671
11,818
11,964
12,696
1,463
Residential Trips
64,962
65,479
65,996
66,514
67,031
67,548
70,135
5,173
Industrial Trips
2,830
2,830
2,830
2,830
2,830
2,830
2,830
0
Commercial Trips
17,196
17,224
17,252
17,280
17,308
17,336
18,487
1,290
Office & Other Trips
8,535
8,584
8,634
8,683
8,732
8,782
8,823
288
Institutional Trips
8,698
8,719
8,740
8,761
8,782
8,803
8,883
185
Nonresidential Trips
37,259
37,357
37,456
37,554
37,653
37,751
39,023
1,764
Total Vehicle Trips
102,221
102,836
103,452
104,068
104,684
105,299
109,158
6,937
VMT
454,567
457,641
460,714
463,787
466,861
469,934
486,776
32,209
Lane Miles
55.60
55.98
56.36
56.73
57.11
57.48
59.54
3.94
Fountain Hills, Arizona

Land Use Assumptions, Infrastructure Improvements Plan, and Development Fee Report 
Fountain Hills, Arizona 
46 
 
ANALYSIS OF CAPACITY, USAGE, AND COSTS OF EXISTING PUBLIC SERVICES  
ARS § 9-463.05(E)(1) requires: 
“A description of the existing necessary public services in the service area and the costs to upgrade, 
update, improve, expand, correct or replace those necessary public services to meet existing needs 
and usage and stricter safety, efficiency, environmental or regulatory standards, which shall be 
prepared by qualified professionals licensed in this state, as applicable.” 
ARS § 9-463.05(E)(2) requires: 
“An analysis of the total capacity, the level of current usage and commitments for usage of 
capacity of the existing necessary public services, which shall be prepared by qualified 
professionals licensed in this state, as applicable.” 
Street Improvements – Plan-Based 
Fountain Hills plans to expand Shea Boulevard to serve future development. The Fountain Hills Public 
Works Department provided construction cost estimates of $29,311,273 to construct 3.94 lane miles of 
Shea Boulevard. The eligible cost of $8,793,382 excludes the 70 percent Maricopa Association of 
Governments (MAG) share of funding. 
Figure S8: Cost Factors 
 
As shown below, the analysis includes a credit of $900,000 for the May 2025 street facilities development 
fee fund balance. The adjusted cost of street improvements is $7,893,382, and the adjusted cost per lane 
mile is $2,003,396. The planned level of service is 1.2232 lane miles per 10,000 VMT (59.54 lane miles / 
(486,776 VMT / 10,000)). For street improvements, the cost is $245.06 per VMT (59.4 lane miles / 486,776 
VMT X $2,003,396 per lane mile). 
Figure S9: Planned Level of Service 
  
 
Shea Blvd Widening
Miles
Lanes
Lane Miles
Total Cost
MAG Funding
Eligible Cost
Palisades to FH Blvd
0.94
1
0.94
$6,276,218
$4,393,353
$1,882,865
FH Blvd to Technology Dr
1.50
2
3.00
$23,035,055
$16,124,539
$6,910,517
Total
2.44
3.94
$29,311,273
$20,517,891
$8,793,382
Source: Fountain Hills Public Works Department
Eligible Cost
$8,793,382
May 2025 Fund Balance
($900,000)
Adjusted Cost
$7,893,382
Lane Miles
3.94
Adjusted Cost per Lane Mile
$2,003,396
Adjusted Lane Miles
59.54
2035 VMT
486,776
Lane Miles per 10,000 VMT
1.2232
Cost per VMT
$245.06
Source: Fountain Hills Public Works Department
Level-of-Service (LOS) Standards
Cost Factors

Land Use Assumptions, Infrastructure Improvements Plan, and Development Fee Report 
Fountain Hills, Arizona 
47 
 
Development Fee Report – Plan-Based 
The 2025 cost to prepare the Street Facilities IIP and related development fee report equals $21,350. 
Fountain Hills plans to update its report every five years, so the 10-year cost is $42,700. Based on the 10-
year cost, proportionate share, and 10-year projections of future development from the Land Use 
Assumptions document, the cost per service unit is $1.33 per VMT. 
Figure S10: IIP and Development Fee Report 
  
 
 
Necessary 
Public Service
2025 
Study Update
10-Year Cost
(2 Updates)
Service 
Unit
10-Year 
Change
Cost per 
Service Unit
Residential
80%
Population
2,462
$13.84
Nonresidential
20%
Jobs
447
$19.04
Residential
98%
Population
2,462
$16.96
Nonresidential
2%
Jobs
447
$1.90
Street
$21,350
$42,700
All Development
100%
VMT
32,209
$1.33
Total
$63,950
$127,900
Proportionate Share
Parks and 
Recreational
$42,600
Fire
$42,600
$21,300
$21,300

Land Use Assumptions, Infrastructure Improvements Plan, and Development Fee Report 
Fountain Hills, Arizona 
48 
 
STREET FACILITIES DEVELOPMENT FEES 
Construction Sales Tax Credit/Offset 
The analysis does not include a revenue credit/offset, because Fountain Hills’ construction sales tax rate 
equals the amount of the sales tax rate imposed on the majority of other sales tax classifications. Appendix 
A contains the forecast of revenues required by Arizona’s Enabling Legislation (ARS § 9-463.05(E)(7)). 
Street Facilities Development Fees 
Figure S11 includes infrastructure components and cost factors for street facilities development fees. The 
cost per service unit is $246.39 per VMT. 
Residential development fees are calculated per housing unit and vary proportionately according to the 
amount of VMT. For a single-family unit, the fee of $6,997 is calculated using a cost of $246.39 per VMT 
multiplied by 28.40 VMT per unit. 
Nonresidential development fees are calculated per development unit and vary proportionately according 
to the amount of VMT. For commercial development, the fee of $6,719 per development unit (1,000 
square feet) is calculated using a cost of $246.39 per VMT multiplied by 27.27 VMT per development unit. 
Figure S11: Street Facilities Development Fees 
  
Fee Component
Cost per VMT
Street Improvements
$245.06
Development Fee Report
$1.33
Total
$246.39
Development
VMT
Unit
per Unit1
Single Family
Housing Unit
28.40
$6,997
$1,935
$5,062
Multi-Family
Housing Unit
13.76
$3,390
$964
$2,426
Development
VMT
Unit
per Unit1
Industrial
1,000 Sq Ft
8.26
$2,035
$630
$1,405
Commercial
1,000 Sq Ft
27.27
$6,719
$2,860
$3,859
Office & Other Services
1,000 Sq Ft
18.39
$4,531
$1,240
$3,291
Institutional
1,000 Sq Ft
33.12
$8,160
$2,480
$5,680
1. See Land Use Assumptions
Residential Fees per Development Unit
Development Type
Proposed
Fees
Current 
Fees
Difference
Nonresidential Fees per Development Unit
Development Type
Proposed
Fees
Current 
Fees
Difference

Land Use Assumptions, Infrastructure Improvements Plan, and Development Fee Report 
Fountain Hills, Arizona 
49 
 
STREET FACILITIES DEVELOPMENT FEE REVENUE 
Appendix A contains revenue forecasts required by Arizona’s Enabling Legislation (ARS § 9-463.05(E)(7)). 
Projected fee revenue shown in Figure S12 is based on the development projections in the Land Use 
Assumptions document and the updated street facilities development fees. If development occurs faster 
than projected, the demand for infrastructure will increase along with development fee revenue. If 
development occurs slower than projected, the demand for infrastructure will decrease and development 
fee revenue will decrease at a similar rate. Projected development fee revenue equals $7,913,117 and 
projected expenditures equal $7,936,010. 
Figure S12: Street Facilities Development Fee Revenue 
 
 
 
Growth Share
Existing Share
Total
Street Improvements
$7,893,310
$0
$7,893,310
Development Fee Report
$42,700
$0
$42,700
Total
$7,936,010
$0
$7,936,010
Single Family
Multi-Family
Industrial
Commercial
Office & Other
Institutional
$6,997
$3,390
$2,035
$6,719
$4,531
$8,160
per unit
per unit
per 1,000 sq ft
per 1,000 sq ft
per 1,000 sq ft
per 1,000 sq ft
Hsg Unit
Hsg Unit
KSF
KSF
KSF
KSF
Base
2025
10,138
4,375
1,162
1,408
1,575
770
Year 1
2026
10,208
4,432
1,162
1,410
1,584
772
Year 2
2027
10,278
4,489
1,162
1,413
1,593
774
Year 3
2028
10,348
4,546
1,162
1,415
1,602
776
Year 4
2029
10,418
4,603
1,162
1,417
1,611
778
Year 5
2030
10,488
4,660
1,162
1,419
1,620
779
Year 6
2031
10,558
4,717
1,162
1,438
1,622
781
Year 7
2032
10,628
4,774
1,162
1,457
1,623
782
Year 8
2033
10,698
4,831
1,162
1,476
1,625
784
Year 9
2034
10,768
4,888
1,162
1,495
1,626
785
Year 10
2035
10,838
4,945
1,162
1,514
1,628
786
700
570
0
106
53
16
$4,897,900
$1,932,300
$0
$712,214
$240,143
$130,560
$7,913,117
$7,936,010
Fee Component
Year
10-Year Increase
Projected Revenue
Projected Fee Revenue
Total Expenditures

Land Use Assumptions, Infrastructure Improvements Plan, and Development Fee Report 
Fountain Hills, Arizona 
50 
 
APPENDIX A: FORECAST OF REVENUES OTHER THAN FEES 
ARS § 9-463.05(E)(7) requires:  
“A forecast of revenues generated by new service units other than development fees, which shall 
include estimated state-shared revenue, highway users revenue, federal revenue, ad valorem 
property taxes, construction contracting or similar excise taxes and the capital recovery portion of 
utility fees attributable to development based on the approved land use assumptions, and a plan 
to include these contributions in determining the extent of the burden imposed by the 
development as required in subsection B, paragraph 12 of this section.” 
ARS § 9-463.05(B)(12) states,  
“The municipality shall forecast the contribution to be made in the future in cash or by taxes, fees, 
assessments or other sources of revenue derived from the property owner towards the capital 
costs of the necessary public service covered by the development fee and shall include these 
contributions in determining the extent of the burden imposed by the development. Beginning 
August 1, 2014, for purposes of calculating the required offset to development fees pursuant to 
this subsection, if a municipality imposes a construction contracting or similar excise tax rate in 
excess of the percentage amount of the transaction privilege tax rate imposed on the majority of 
other transaction privilege tax classifications, the entire excess portion of the construction 
contracting or similar excise tax shall be treated as a contribution to the capital costs of necessary 
public services provided to development for which development fees are assessed, unless the 
excess portion was already taken into account for such purpose pursuant to this subsection.” 
REVENUE PROJECTIONS 
Fountain Hills does not have a higher-than-normal construction excise tax rate; therefore, the required 
offset described above is not applicable. Shown in Figure A1, Fountain Hills provided the required forecast 
of non-development fee revenue from identified sources that can be attributed to future development 
over a period of five years. Fountain Hills directs the revenues shown below to non-development fee 
eligible operations and capital needs including maintenance, repair, and replacement. 
Figure A1: Revenue Projections 
 
 
 
Projected Revenue
FY2025-26
FY2026-27
FY2027-28
FY2028-29
FY2029-30
Intergovernmental Revenue
$8,337,654
$8,504,407
$8,674,495
$8,847,985
$9,024,945
Licenses, Permits & Fees
$1,637,398
$1,686,520
$1,737,116
$1,789,229
$1,842,906
Building Permit Revenue
$712,740
$734,122
$756,146
$778,830
$802,195
Local Sales Taxes
$16,500,234
$17,160,243
$17,589,249
$18,028,981
$18,479,705
Total
$27,188,026
$28,085,293
$28,757,006
$29,445,025
$30,149,751
Source: Town of Fountain Hills 2026-2030 Revenue Projections

Land Use Assumptions, Infrastructure Improvements Plan, and Development Fee Report 
Fountain Hills, Arizona 
51 
 
APPENDIX B: PROFESSIONAL SERVICES 
As stated in Arizona’s development fee enabling legislation, “a municipality may assess development fees 
to offset costs to the municipality associated with providing necessary public services to a development, 
including the costs of infrastructure, improvements, real property, engineering and architectural services, 
financing and professional services required for the preparation or revision of a development fee pursuant 
to this section, including the relevant portion of the infrastructure improvements plan” (see ARS § 9-
463.05.A). Because development fees must be updated at least every five years, the analysis allocates the 
cost of two updates to the projected increase in service units during 10-year study period (see Figure B1). 
Qualified professionals must develop the IIP, using generally accepted engineering and planning practices. 
A qualified professional is defined as “a professional engineer, surveyor, financial analyst or planner 
providing services within the scope of the person's license, education or experience”. 
Figure B1: Cost of Professional Services 
 
 
Necessary 
Public Service
2025 
Study Update
10-Year Cost
(2 Updates)
Service 
Unit
10-Year 
Change
Cost per 
Service Unit
Residential
80%
Population
2,462
$13.84
Nonresidential
20%
Jobs
447
$19.04
Residential
98%
Population
2,462
$16.96
Nonresidential
2%
Jobs
447
$1.90
Street
$21,350
$42,700
All Development
100%
VMT
32,209
$1.33
Total
$63,950
$127,900
Proportionate Share
Parks and 
Recreational
$42,600
Fire
$42,600
$21,300
$21,300

Land Use Assumptions, Infrastructure Improvements Plan, and Development Fee Report 
Fountain Hills, Arizona 
52 
 
APPENDIX C: LAND USE DEFINITIONS 
RESIDENTIAL DEVELOPMENT 
The residential development categories shown below are based on data from the U.S. Census Bureau, 
American Community Survey. Development fees will be assessed to all new residential units. One-time 
development fees are determined by site capacity (i.e., number of residential units). 
Single Family: includes fully detached, semi-detached (semi-attached, side-by-side), row house, 
townhouse, and mobile home units. In the case of attached units, each must be separated from the 
adjacent unit by a ground-to-roof wall in order to be classified as a single-family structure. Also, these 
units must not share heating/air-conditioning systems or utilities. 
Multi-Family: includes residential buildings containing units built one on top of another and those built 
side-by-side which do not have a ground-to-roof wall and/or have common facilities (i.e., attic, basement, 
heating plant, plumbing, etc.). This also includes boats, RVs, vans, etc., occupied as a housing unit or units 
that do not fit into the other categories.

Land Use Assumptions, Infrastructure Improvements Plan, and Development Fee Report 
Fountain Hills, Arizona 
53 
 
NONRESIDENTIAL DEVELOPMENT 
The proposed general nonresidential development categories (defined below) can be used for all new 
construction. Nonresidential development categories represent general groups of land uses that share 
similar average weekday vehicle trip generation rates and employment densities (i.e., jobs per thousand 
square feet of floor area).  
Commercial: Establishments primarily selling merchandise, eating/drinking places, and entertainment 
uses. By way of example, Commercial includes shopping centers, supermarkets, pharmacies, restaurants, 
bars, nightclubs, automobile dealerships, movie theaters, hotels, and motels. 
Industrial: Establishments primarily engaged in the production, transportation, or storage of goods. By 
way of example, Industrial includes manufacturing plants, distribution warehouses, trucking companies, 
utility substations, power generation facilities, and telecommunications buildings. 
Institutional: Establishments including public and quasi-public buildings providing educational, social 
assistance, or religious services. By way of example, Institutional includes schools, universities, churches, 
daycare facilities, and government buildings. 
Office & Other Services: Establishments providing management, administrative, professional, or business 
services; personal and health care services. By way of example, Office & Other Services includes banks, 
business offices, assisted living facilities, nursing homes, hospitals, medical offices, and veterinarian 
clinics.