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Gerry M. Friedel MAYOR 1st Term

Peggy McMahon COUNCILMEMBER Elected 2020


Gayle Earle VICE MAYOR Elected 2024

Hannah Larrabee COUNCILMEMBER Elected 2022

Brenda Kalivianakis
COUNCILMEMBER Elected 2022

Rick Watts COUNCILMEMBER Elected 2024
Mayor serves two-year term. Town Councilmembers serve four-year terms.

Allen Skillicorn COUNCILMEMBER Elected 2022
Jennifer Wright Town Attorney
Joanna Elliott Court Administrator
Rachael Goodwin Town Manager
Amanda Jacobs Economic Development Director
Capt. Kevin Thomas MCSO
Mike Pelton Community Relations Director / PIO
Robert Melton Presiding Judge
Bev Bender Town Clerk
Chief Dave Ott Fountain Hills Fire Department
Paul Soldinger Chief Financial Officer, CPA, CFE
David Trimble Deputy Town Manager / Administrative Services Director
Justin Weldy Public Works Director
Kevin Snipes Community Services Director
John Wesley Development Services Director


It is my privilege to share this year’s Annual Report for the Town of Fountain Hills.
This past fiscal year asked a lot of our organization, and I am proud of the way our team responded. Across every department, staff stayed focused on the work in front of them while continuing to move important priorities forward for the community. We turned plans into progress residents can see and experience, including major road reconstruction projects, meaningful upgrades in our parks, and improvements that strengthen our Fire Department’s leadership structure and response readiness.
We also saw our signature events continue to bring people together in a big way, with remarkable crowds and the kind of community energy that makes Fountain Hills so special. At the same time, our public safety team continued to show up with professionalism, care, and a steady commitment to serving this community.
I often say that Fountain Hills is served by a small but mighty team, and this year was another reminder of just how true that is. The work highlighted in this report reflects long hours, thoughtful planning, teamwork, and a shared commitment to making Fountain Hills better.
I am grateful to our staff, our Mayor and Town Council, and the residents who care deeply about this community. It is an honor to serve Fountain Hills, and I am proud of what we accomplished together this year.
Town Manager Rachael Goodwin

Palomino Boulevard Reconstructed
With a Town Council-approved investment of approximately $5 million, the Palomino Boulevard Reconstruction Project represents one of the Town’s most significant roadway improvement efforts in recent years. The longanticipated project focused on significantly improving driving conditions and extending the lifespan of the roadway along approximately 1.4 miles between Palisades Blvd. and Fountain Hills Blvd.
The Town added a new park this past year! Panorama Park is a 1.75acre pocket park located just southeast of Fountain Park at 12625 N. Panorama Drive. Completed in late 2025, it is the newest park built in the Town. As a pocket park, it is designed for use in a more passive way, such as by enjoying a casual walk, or using it as a place to sit and read a book.
Panorama Park features a walking path, four benches and many different types of landscaping, such as plants and trees, which will grow to provide shade throughout the park.


Gauging resident feedback on various issues is a big priority for the Town. Over the past year, the Town enlisted the services of FlashVote to help conduct periodic surveys to gauge resident input across a range of topics and issues. The goal is to ensure resident voices are heard on important local issues. While early in the partnership with FlashVote, the Town already conducted surveys on topics including communications preferences and the appetite, or lack thereof, for seeking a bond to help pay for additional roadwork.
Signing up for the survey panel takes less than one minute and resident input is always kept anonymous. Personal or demographic information collected by FlashVote is never shared with the Town or anyone else. If you wish to register, head to FlashVote.Com/FountainHillsAZ.
Fountain Hills had a stellar year for community events, with the Town’s four signature celebrations drawing tens of thousands of visitors to the community. As a Town that thrives on tourism and sales tax revenue, the popularity of the events reflects the success of the Town’s efforts to engage residents, attract visitors, and support local businesses.

Fourth at the Fountain, Turkey Trot, Irish Fountain Fest, and Music Fest each saw big crowds, energizing the downtown and providing a major boost to local shops, restaurants, and vendors. Turkey Trot sold out while hitting 3,000 participants for the first time, filling the streets for the popular Thanksgiving morning tradition.
Fountain Hills remains committed to delivering high-quality events that showcase the town’s unique charm and attract visitors from across the Valley and beyond, while reinforcing its reputation as a vibrant, welcoming community.


The purchase and installation of lighting for the Centennial Pavilion Shade Canopy is a welcome addition to this space that is growing in popularity.
Originally installed in 2024 and located next to the Community Center, the shade canopy quickly became a popular community gathering and event space. In response to its growing use, Town staff partnered with Lighting Unlimited and the Fountain Hills Dark Sky Association to thoughtfully design lighting that enhances usability while preserving Fountain Hills’ night skies.
The newly installed lighting is fully dark sky compliant, with special consideration given to the nearby Discovery Center to ensure the fixtures complement the surrounding environment.
The completed project further enhances the Centennial Pavilion Shade Canopy as a welcoming and functional destination for community events, and now both day and nighttime events are welcome. It helps provide appropriate lighting for events in this space, such as the 3rd Thursday Concert Series which returns in the fall.
This one is for the dogs!
The Desert Vista Dog Park is one of the most popular and heavily used amenities in the Town’s park system, making periodic renovations necessary to maintain safety, functionality, and overall user experience.
The Town Council approved funding for enhancements to the dog park, and the Town waited until June, a hotter month with lower usage, to tackle the project while minimizing impact to residents.

Improvements included turf enhancements, weed abatement, upgrades to the dog splash pad drainage system, new granite under shade ramadas and improvements to hightraffic areas, along with other site modifications designed to enhance the park for residents and their pets.

The Town’s 3rd Thursday Concert Series quickly became one of the community’s most successful and anticipated new events of the year. Held monthly at Centennial Pavilion from November through April, the free outdoor concert series brought hundreds of residents and visitors together during the cooler months to enjoy live music, dancing, and an unforgettable community atmosphere under the stars.
Featuring an impressive lineup of Arizonabased performers spanning genres from blues and Americana to country, funk, jazz, and bluegrass, each concert transformed Downtown Fountain Hills into a vibrant gathering place filled with energy and activity.
What began as a new community activation effort quickly evolved into a wildly popular recurring event series. Crowd sizes consistently exceeded expectations, with Centennial Pavilion packed each month by enthusiastic concertgoers enjoying the welcoming atmosphere and coolweather evenings. The concerts also showcased the Town’s continued commitment to creating experiences that support local businesses, activate Downtown spaces, and strengthen community connections.
Residents repeatedly expressed excitement about the concerts returning each month, and the series became a signature part of the Town’s seasonal event calendar. Due to its overwhelming success, the 3rd Thursday Concert Series is scheduled to return in the fall, bringing even more live music and community celebration back to Downtown Fountain Hills.



The Town leaned into the America 250 celebration, a major milestone marking the anniversary of the signing of the Declaration of Independence. The Town rolled out various events and initiatives full of patriotic pride to honor America’s history.

Highlights of Fountain Hills’ America 250 Celebration include patriotic Avenue of the Fountains banners which offer a commemorative vibe throughout the downtown. Additionally, the Town created an AWESOME America 250 Selfie & Photo Spot at Fountain Park. The monument stands more than eight feet tall with a stucco finish in bold red and blue, built to look great in person and even better on social media feeds. The monument will stay at Fountain Park through the end of 2026.

The Town also produced Commemorative T-Shirts with a unique Fountain Hills 250 logo, hosted a patriotic Movie in the Park and organized a youth Visual Arts & Essay Contest.
The many different aspects of the celebration were meant to honor America’s founding, while adding a distinct Fountain Hills vibe. The Town appreciates residents and visitors who joined in the fun!
Though the Town of Fountain Hills does not provide direct water, sewer and trash collection services, the Town works closely with partners to offer these utilities for residents. By using these topnotch organizations to deliver utility services, residents are assured of the best service without paying additional taxes or fees to the Town for equipment maintenance, staff and upgrades.
EPCOR, a Canadianbased company, provides water services to more than 13,000 residences in Fountain Hills and has existed since before the Town’s incorporation in 1989. In the event of a main water rupture or other water supply issue, EPCOR will quickly respond to resolve the situation.
www.epcor.com
The Town of Fountain Hills has a contract with Republic Services to provide household trash collection, recycling and bulk trash removal. Republic Services residents are billed directly by the company. The Town Council voted to approve a new solid waste services agreement which goes into effect in 2027, when Universal Waste Systems will service the Town. www.republicservices.com
Fountain Hills Sanitary District Manages Wastewater
Established in 1969, the Fountain Hills Sanitary District is a governmental entity that collects, treats, and disposes of wastewater and its byproducts within the Town of Fountain Hills. The Fountain Hills Sanitary District has successfully recycled wastewater for beneficial reuse since 1974.



The Sanitary District prides itself on being good stewards of the environment and doing its part to protect the desert’s limited water resources. All wastewater in town is treated and beneficially reused for irrigation purposes. The reclaimed water produced by the District’s WWTP is used to fill Fountain Lake, and to irrigate Fountain Park and golf courses.
www.azfhsd.gov
Fountain Hills welcomed several new businesses during the year, including Snowbird Ice Cream and Haan Korean BBQ, expanding dining options for residents and visitors.
Construction also began on a new 23,024squarefoot Sprouts Farmers Market at Four Peaks Plaza. The project is anticipated to open in late 2026/early 2027 and represents a significant commercial investment in the community.
Several existing businesses reinvested in Fountain Hills during the year.
Streets of New York reopened in December, returning to the community after previously operating in Fountain Hills for nearly 20 years. The new restaurant includes indoor and outdoor dining, a fullservice bar, and a dedicated takeout area.
The Elliott Group continued expanding its business operations in Fountain Hills to include three new twostory buildings with a combined total floor area of 7,259 sq ft.
Good Living Greens relocated to the Avenue of the Fountains.
Additionally, Social Sips, formerly Pearl Nutrition, relocated

The Town continued implementation of the Downtown Strategy through several initiatives and capital investments, including:
• Adoption of the Downtown Overlay District.
• Approval of $50,000 for the Façade Improvement Program, which launched in April 2026.
• Approval of $515,000 for the design of improvements to Parkview Avenue and Verde River Drive.
• Approval of $25,000 to continue the utility box mural program.
• Approval of $400,000 for a townwide wayfinding signage program, including directional signage to Downtown Fountain Hills.
• Installation of America 250 street banners along the Avenue of the Fountains.
• Approval of $36,000 for Downtown marketing efforts, including creation of a new downtown logo and dedicated social media presence.
• Launch of a sixmonth Centennial Pavilion Concert Series in the Civic District.
The International Dark Sky Discovery Center reached a significant milestone with installation of the largest telescope in the Greater Phoenix metropolitan area. The Dark Sky Observatory is the first of four planned components of the Discovery Center, which will also include a planetarium, theater, and exhibit hall.

The Community Services Team secured the twoday Sharpen Up! Summit at the Community Center, bringing representatives from colleges and universities across the United States to Fountain Hills. The event generated $10,658 in facility revenue and resulted in 136 hotel room nights at local lodging properties. The summit is scheduled to return in July 2026.
In partnership with DayLite Films, Experience Fountain Hills produced 10 new promotional videos highlighting local lodging properties, restaurants, attractions, and experiences. The videos support ongoing destination marketing efforts and promote Fountain Hills to potential visitors.
Fountain Hills is getting closer to officially welcoming a fan favorite grocer to the community. Sprouts Farmers Market, a popular specialty grocery store known for fresh, natural, and organic products, is in the process of building their new location in the heart of Fountain Hills. The 23,024 squarefoot store is located in the Four Peaks Plaza Shopping Center, near Shea and Saguaro Boulevards. Construction began over the past year, and the company is closer to opening with each passing day. Welcoming Sprouts to the community is a key achievement in the Town’s efforts to attract high-quality businesses to Fountain Hills.





The Development Services Department provides various functions to ensure the Town grows smartly and safely. The divisions within the department include Building Safety, Planning and Zoning, Code Compliance, and Mapping and Graphics.
The Fountain Hills Connect reporting system allowed residents to submit information on issues such as potholes, graffiti, fallen street signs, and much more. This provides the Code Enforcement team with helpful information to help staff quickly resolve requests and concerns. During this fiscal year, the department investigated 650 code enforcement cases. Of those, 474 have been resolved and closed.
Program Attendance:
Roughly 50,000 people
Revenue increased 10% to $126,737
Senior services revenue increased 41% to $112,664 with more than 45,000 participants

The Community Services Department oversees and collaborates with many community organizations by maintaining and providing services for town parks, trails, the Community Center, Senior Services, community arts programs, volunteers, special events, HomeDelivered Meals, and much more.
The Fountain Hills Community Center is a hub of community events, programs and activities for residents. In the 2025/2026 fiscal year the center hosted a variety of local and regional events, as well as grew programs that make a difference in the community.
Ice Cream Social Municipal Clerks Annual Conference
Summer Games
Oktoberfest
Breakfast with Santa Season’s Celebration
State of the Town
Activity and Volunteer Expo
Bridge Tournament
Dementia Caregiver Summit
Sunshine Regional Watch and Clock Convention
Dark Sky Festival
Museum Association of Arizona Convention
Town Council and Mayoral Forums
Four Blood Drives
Pokemon Christmas
Sensitive Santa
Sharpen Up! Dance Summit
Significant enhancements were installed in the Community Center, including new furniture and blinds in the lobby, new ceiling fans and ballroom divider walls.
Rentals
• 365 permits
• Revenue increased 12% over prior year
During Fiscal Year 202526, the Parks Division completed a wide range of improvement projects focused on enhancing park amenities, increasing safety, improving accessibility, upgrading aging infrastructure, and expanding recreational opportunities throughout the Town’s park system.
• Significant improvements made at Desert Vista Dog Park: Leveled turf areas, improved drainage, enhanced turf health, irrigation modifications, and new concrete splash pad area.
• Desert Vista restroom facilities underwent complete remodel
• Desert Vista soccer field area improvements
Golden Eagle Park Improvements
• New sports court lighting
• Removal and repair of damaged handrails
• Replaced fencing on two fields
• Resurfaced tennis courts
• HVAC upgrades at the concession stand
• Playground enhancement
Centennial Pavilion Enhancements
• New lighting system for Centennial Pavilion shade structure
Fountain Park Improvements
• Fountain Park ramada replacement
• Landscape enhancement along the Panorama Boulevard slope
• Installation of lighting and electrical receptacles beneath the ramada near the splash pad.
• Townwide trash receptacle replacement project

• Programmable multi-color LED lighting installed along the Avenue of the Fountains

Fountain Hills is a special place due to the unmatched spirit of neighbors helping neighbors. Volunteers play a critical role across the community on a daily basis to help improve the lives of residents and visitors alike.
This past year, volunteers donated an incredible 20,036 hours of service, an estimated monetary value of $706,669 based on the 2025 Arizona volunteer annual rate of $35.27. The actual value of that service far exceeds any dollar amount, as the efforts of all volunteers touched countless lives across Fountain Hills, helping make the Town a place we are proud to call home.
299 Rides Provided GIVE A LIFT
598 Volunteer Hours GIVE A LIFT
6,634 Meals Delivered HOME DELIVERED MEALS
20,036
TOTAL VOLUNTEER HOURS
$706,669
VALUE IN VOLUNTEER SERVICES (Independent Sector 2025 Value of Volunteer Time $35.27 an hour)
2,688 Volunteer Hours HOME DELIVERED MEALS
240 Care Cards and Crafts Created CARE CARD PROGRAM
660 Volunteer Hours CARE CARD PROGRAM
229 Volunteers
SONORAN CONSERVANCY
8,728 Volunteer Hours
SONORAN CONSERVANCY
148 Volunteer Hours
MAYOR’S YOUTH COUNCIL
37 Residential Projects Completed MAKE A DIFFERENCE DAY 2025
446 Volunteers Participated MAKE A DIFFERENCE DAY 2025
2,725 Service Hours Contributed MAKE A DIFFERENCE DAY 2025
1,025 Volunteer Hours COMMUNITY CENTER HOLIDAY
500 Cups of Hot Cocoa Served
SEASON’S CELEBRATION
480 Cookies Decorated
SEASON’S CELEBRATION
94 Volunteer Hours
SEASON’S CELEBRATION
225 Attendees BREAKFAST WITH SANTA
419 Volunteer Hours TOWN BOARDS & COMMISSIONS
1,275 Active CRISIS RESPONSE TEAM
8,250 On-call Hours CRISIS RESPONSE TEAM
900 Pancakes Served BREAKFAST WITH SANTA
80 Community Partners
VOLUNTEER & ACTIVITY EXPO
480 Volunteer Hours VOLUNTEER & ACTIVITY EXPO
758 Volunteer Hours PARKS & RECREATION EVENTS

The Town Clerk’s Office continued to provide essential services, ensuring government transparency, civic engagement, and compliance with legal requirements. Through effective election administration, records management, meeting support, and ongoing modernization initiatives, the office contributed significantly to the efficient and accountable operation of the Town of Fountain Hills.
The office remains actively engaged with municipal clerks statewide and nationally through its memberships in the International Institute of Municipal Clerks (IIMC) and the Arizona Municipal Clerks Association (AMCA). Town Clerk Bevelyn Bender holds the Master Municipal Clerk (MMC) designation, and the Deputy Clerk earned her Certified Municipal Clerk (CMC) designation during this fiscal year. As of this year, the Town has hosted clerks from across Arizona during the AMCA Conference at the Community Center for 15 consecutive years.
The Town Clerk’s Office prepared for the 2026 election cycle through coordination with county and state election officials, maintenance of election records, and implementation of electionrelated procedures.
The Town Clerk’s Office processed approximately 429 public records requests, a significant uptick compared with recent years.
The Town Clerk’s Office managed agenda preparation, public notifications, records retention, and minutetaking for Town Council meetings, ensuring compliance with Arizona’s Open Meeting Law. The Town Council conducted 18 regular meetings, three special meetings, six workstudy sessions, 17 executive sessions, and one joint regular/special session.
The Town Council adopted 36 resolutions and 16 ordinances during FY2025FY2026. Resolutions addressed a variety of municipal matters, and ordinances included updates to Town regulations, zoning provisions, and municipal code requirements. The Town Clerk’s Office ensured the proper recording, publication, and retention of all legislative actions.

The Fountain Hills Public Works Department continued making significant investments in the Town’s infrastructure. Through roadway preservation, pedestrian safety improvements, capital project delivery, facility upgrades, and environmental stewardship, the Department enhanced the safety, reliability, and appearance of the community while responsibly managing Town assets.
Below is a summary of key accomplishments completed by the Engineering, Streets, and Facilities Divisions during the past fiscal year.
• The Engineering Division continued improving pedestrian and traffic safety throughout the community by completing five new and upgraded highvisibility pedestrian crossings and installing enhanced pavement markings at key intersections. Construction also began on new pedestrian crossing improvements at Monterey Drive and Saguaro Boulevard.
• The Town completed installation of a new community wayfinding sign system, improving navigation for residents and visitors traveling throughout Fountain Hills. In total, 39 signs were fabricated and installed.
• The Town continued its proactive pavement preservation program through roadway reconstruction and resurfacing projects throughout the community, paving more than 9.3 lanemiles throughout the Town.
• Fulldepth reconstruction of Palomino Boulevard, providing a completely new roadway structure designed to serve residents for many years. Additional pavement preservation projects were completed, and others were started on cul-de-sacs that were past the end of their functional life.
• To improve roadway conditions and provide a more proactive response to pavement deterioration, the Streets Division implemented dedicated biweekly pothole repair crews. This scheduled maintenance program enables staff to identify and repair potholes more consistently. Town staff and contractors placed approximately 24 tons of hot and coldmix asphalt, repairing hundreds of potholes throughout the community, focusing on Fountain Hills Boulevard and Palisades Boulevard.
• The Streets Division completed approximately 31 acres of wash maintenance, removing approximately 1,540 tons of organic vegetation to improve stormwater conveyance, reduce wildfire fuel loads, and protect public infrastructure.
• The Town completed a grant-funded non-functional turf removal project at Fountain Hills Boulevard and Shea Boulevard, replacing irrigated turf with droughttolerant landscaping. The project is expected to reduce annual irrigation demand by approximately 1.9 million gallons (5.8 acrefeet) through the replacement of high-water-use turf with drought-tolerant desert landscaping.
• The Town continued investing in critical drainage infrastructure to improve stormwater conveyance and protect public roadways during significant storm events. The Town completed construction of a new concretelined drainage channel on Wendover Court, replacing an eroded natural drainage swale with a defined stormwater conveyance facility.
• Completed the Nelson Drive Channel Improvement Project, which improved drainage capacity and enhanced the reliability of the Town’s stormwater system.
• Construction continued on the Shea Boulevard Widening Project, adding approximately 0.9 lane mile of new eastbound travel lane between Palisades Boulevard and Fountain Hills Boulevard. Approximately 70% of the project is funded through regional transportation funding administered by the Maricopa Association of Governments (MAG).
• Advanced the Downtown Streetscape Improvement Project along Verde River Drive and Parkview Avenue to approximately 80% design completion. Final design is anticipated to be completed in Fall 2026, with construction of the Verde River Drive corridor scheduled to begin during the following fiscal year.
• In addition to delivering capital improvement projects and longrange planning initiatives, the Engineering Division continued to provide timely development review, permitting, and inspection services in support of private development and public infrastructure improvements throughout the Town.
• Engineering staff completed 717 plan reviews, issued 190 engineering and encroachment permits, and performed 452 engineering inspections.
• The Facilities Maintenance Division, consisting of a dedicated staff of three, is responsible for maintaining more than 110,000 square feet of Townowned facilities. During the year, the division completed more than 400 preventive and corrective maintenance work orders.

• The division completed numerous projects to improve the reliability, safety, and efficiency of Town facilities. Major accomplishments included replacement of Chiller No. 3; rehabilitation of Chilled Water Pump No. 3 and reconfiguration of the cooling tower piping to restore full chiller plant redundancy; replacement of the Fire Station No. 1 rooftop HVAC system; installation of new garage door equipment at the fire stations; implementation of a new Computerized Maintenance Management System (CMMS); and installation of a new ChargePoint electric vehicle charging station at the Community Center.
• Additional improvements included general building repairs, installation of bottlefilling drinking stations, completion of annual fire alarm and sprinkler inspections, and employee safety training.
The Town continued its commitment to environmental sustainability by hosting its annual Household Hazardous Waste Collection Event and Electronic Recycling Event.
On November 8, 2025, the Town hosted its annual Household Hazardous Waste Collection Event, during which residents safely recycled or disposed of:
• 14,250 pounds of paint
• 3,778 pounds of batteries
• 97 pounds of lithiumion batteries
• 1,500 pounds of household chemicals
• 1,225 pounds of pesticides
• 900 pounds of flammable aerosols
• 825 pounds of gasoline
• 800 pounds of used oil
• 267 pounds of light bulbs
• 92 pounds of propane
• On April 11, 2026, the Town conducted its annual Electronic Recycling Event, collecting 9,763 pounds of electronic waste for responsible recycling and keeping obsolete electronics out of local landfills.
Through the continued efforts of the Engineering, Streets, and Facilities Divisions, the Public Works Department remains committed to responsibly preserving and enhancing the Town’s infrastructure while delivering safe, reliable, and sustainable public services that enhance the quality of life for everyone who lives, works, and visits Fountain Hills.

The Town of Fountain Hills continues to utilize the Maricopa County Sheriff’s Office (MCSO) as its contracted law enforcement provider. MCSO is committed to serving the residents and visitors of Fountain Hills. The Town has some of the lowest criminal statistics in the state, making it one of the safest communities across Arizona.
4,898 Calls for Service
2,631 Traffic Stops
365 Arrests
1,997 Incident Reports
665 Pounds of Drugs Taken Back



The Fountain Hills Fire Department is a vital pillar of the community, delivering toptier emergency response and championing public safety on a daily basis. Whether responding to fires, medical calls, or other urgent situations, the department acts swiftly to protect lives and property.
This year, the Town of Fountain Hills Fire Department transitioned to a new command structure, marking a significant milestone in the Town’s ongoing commitment to public safety and operational excellence.
As part of the transition, three fire personnel have been formally designated as Battalion Chiefs, which are vital leadership positions that oversee daily operations at both fire stations and provide onscene command during complex emergency incidents. This change aligns the Fire Department more closely with industry best practices and strengthens its ability to respond efficiently and effectively to emergencies of all types.
4,690

The Town’s Finance Division remains committed to conservative forecasting, responsible budgeting, and longterm financial stability. This approach helps ensure that Fountain Hills can continue providing core services to residents, maintaining public safety, and investing in infrastructure and community priorities even when economic conditions change.
Local sales tax revenues continue to be one of the Town’s most important revenue sources, but they can be difficult to forecast because they are influenced by consumer spending, construction activity, tourism, restaurants, services, utilities, and real estate trends. In Fiscal Year 2026, the Town collected approximately $20.6 million in local sales tax revenue, a roughly 1.8% increase over Fiscal Year 2025. This increase was especially encouraging because the State of Arizona eliminated local taxes on long-term residential rentals beginning January 1, 2025, which affected the second half of Fiscal Year 2025 and all of Fiscal Year 2026. Even with that revenue source removed, the Town’s overall local sales tax collections increased from FY2025 to FY2026.
The FY2026 results show both resilience and shifting activity within the local economy. Retail remained the largest local sales tax category, generating approximately $10.8 million, or more
than half of total collections. Several categories increased compared with the prior year, including construction, services, retail, and restaurants and bars. Construction activity increased about 10.6%, services increased by roughly 5.9%, restaurants and bars increased by about 4.4%, and retail increased by 1.8%. These gains helped offset a continued decline in the real estate category, which decreased by about 26.5% due to the State’s elimination of longterm rental taxes.
Overall, the sales tax results suggest that Fountain Hills’ local economy remains steady, while also showing why the Town must continue to monitor revenue trends carefully. The Finance Division will continue reviewing revenues each month, providing regular updates to the Town Council, and using conservative assumptions in future budgets to protect Town services from economic slowdowns or unexpected changes.
Despite ongoing uncertainty in some revenue categories, the Town remains well positioned to continue providing services, improving infrastructure, supporting environmental programs, and investing in public safety.
30TH Consecutive Certificate of Achievement for Excellence in Financial Reporting for Comprehensive Annual Financial Report
24TH Consecutive Distinguished Budget Presentation Award
14TH Consecutive Popular Annual Financial Reporting Award
$12,000,000
$10,000,000
$8,000,000
$6,000,000
$4,000,000
$2,000,000
$0


