The Town Council has voted to adopt new development fees for new residential and commercial construction in Fountain Hills.

New fees will take effect as of April 5, 2020 and will be assessed at $3,974 for a single family residence and $2,537 for multi-family projects. Residential fees are assessed per dwelling unit. Non-residential projects are assessed per square foot of area and include industrial ($1.29), commercial ($3.82), institutional ($2.86) and office ($2.45).

The town is collecting the fees for three categories of development including fire services, parks and recreation and streets. The fees are based on a plan of anticipated infrastructure costs over the next 10 years. The town hired the firm of TischlerBise to prepare the Infrastructure Improvement Plan that projects the needs and estimates the cost. State law requires that municipalities update the IIP every 10 years.

The staff report presented to the council states that by statute a municipality may assess development fees to offset costs to the town associated with providing necessary public services to development including the costs of infrastructure, improvements, real property, engineering and architectural services, financing and professional services required for preparation or revision of a development fee plan.

“The concept is that growth pays for growth,” Town Manager Grady Miller said. “Current residents don’t need to bear the load [of infrastructure expansion].

The council approved the new fees on a unanimous vote. The updated IIP was adopted at a previous council meeting.