City of Chandler receives clean biennial system development fee audit for FY22–23 and FY23–24
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Summary
City budget staff presented results of a biennial audit of system development (impact) fees conducted by Heinfeld & Meech; the audit found no exceptions and confirmed compliance with Arizona state law and reporting requirements, though growth projections differed slightly from actuals.
Sylvia Delat, the City of Chandler’s budget and research administrator, presented the results of the city’s biannual system development fee audit at the March 27 council meeting and said auditors reported no exceptions for fiscal years 2022–23 and 2023–24.
Delat told the council that Arizona state law requires municipalities that collect system development or impact fees to file annual reports, post those reports online within 90 days of fiscal year end, and either form an advisory committee or complete a biannual audit. She said Chandler posted its most recent annual report in August 2024 and completed the most recent audit, conducted by Heinfeld & Meech, using the 2019 Land Use Assumptions and Infrastructure Improvement Plan as the applicable plan through June 30, 2024.
The audit compared growth projections in the 2019 plan to actual growth during the two audited fiscal years, reviewed progress on infrastructure improvement projects, tested a sample of 80 building permits for correct fee application, and tested 50 expenditures for eligibility. Delat said the auditors found the city’s records and fee administration to be “clean” other than “slight differences in growth projections” compared with actual development.
Because this agenda item was a public hearing to present the audit, no council action was required that night. Delat noted the city completed a plan update in spring 2024 and that future updates may be needed sooner than five years because of inflationary impacts on capital projects and new infill-related projects.
