What follows are my personal views and not those of the Fountain Hills Strategic Planning Advisory Commission.

It is difficult to find Fountain Hills residents who are not happy to live here. A few years ago the town asked SPAC to help update the five-year plan. As part of that process, I interviewed 23 residents – stakeholders, business owners and many of our neighbors. The goal was to identify attitudes toward the town.

The responses covered a range of issues such as “We need a movie theater” and “Why isn’t the grass around the fountain greener?” None of them, however, rose to the level of “If things don’t change, I’m moving!” But this was all before the recession became a serious economic challenge for Fountain Hills.

Has this attitude continued? Will it hold for the future? Do our residents understand the consequences of the recession and the impact on the town?

Let’s take a brief look at Fountain Hills today.

According to the mid-term census, we lost population, some 22,000, down from 24,000 permanent residents in 2005.

Our population is aging. The census shows a dramatic change. Since 2000, our average age has increased from 39 to 49 years.

The percentage of residents older than 65 has increased a whopping 61 percent.

The number of young people fell by 27 percent. Witness the closing of an elementary school in 2011.

Our town’s revenues have decreased 21 percent since 2008 when the recession really hit.

Most towns and cities have multiple revenue sources. Those communities can more easily compete for non-retail businesses because of their proximity to the urban core and larger populations that provide a pool of skilled workers. For that reason they can employ higher-wage workers who in turn spend their money locally. The result can be that the percentage of tax receipts don’t recede as fast, and during the recovery growth is faster.

Fountain Hills has just two main revenue sources: sales tax and a contribution from the state based on a population formula. However, as our population has declined, and the overall population of the state increases, our share of state revenue declines. We have seen a 31 percent reduction in state revenues since 2006. This decline is likely to continue.

Let’s look at some examples of the impact this has on Fountain Hills today. The Fountain still spouts every hour and the grass gets cut around the lake. Our streets are clean and the fire department still responds to calls. The town government has done an admirable job of anticipating lost revenue and adjusting accordingly. But there are a number of changes that have occurred that are much less visible to our residents. Do you know…

There has been a 43 percent reduction in town staff. Most that remain are doing 2-3 jobs in an attempt to keep services in line with residents’ expectations. This has to raise concerns about burn-out with a subsequent decline in services.

Potential investors refuse to buy into our future; this is why we have no movie theater, for example.

Retail establishments fail (or move) at an alarming rate and there is no town staff to help with retention.

Property values may not rise as rapidly as our sister cities and towns.

Are we in danger of seeing the vibrancy and special quality of Fountain Hills diminish?

In 2012 SPAC asked the New Venture Group from ASU to look at potential economic development options for Fountain Hills. Their findings were a wake-up call. The report stated in part, “It is possible that Fountain Hills is at something of a demographic turning point over the next decade. It could…..continue its drift toward Gold Canyon and take on the profile of a retirement community, or it could change direction…

“The next decade, which is a reasonable planning horizon, may define the future of Fountain Hills.”

When our Town Council recently approved a comprehensive economic development plan, members decided that the current trends are not the way we should go.

But how do we change our direction? There is no magic bullet! However, there are actions that can be taken to slow down and, perhaps, reverse our course. It will not happen overnight, but with a clear path forward and the willingness of our citizens to do their part, positive changes can occur.

That will be the subject of a future article.

Alan Magazine is chairman of the Fountain Hills Strategic Planning Advisory Commission. He is the former CEO of the Health Industry Manufacturers Association and founding president of the Washington, D.C.-based Council on Competitiveness.