Biennial Certified Audit Report
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City of Chandler, Arizona
Report on Applying Agreed-Upon Procedures
Biennial Certification of Land Use Assumptions,
Infrastructure Improvement Plan
and Impact Fees
For the Period July 1, 2018 through June 30, 2020
CITY OF CHANDLER, ARIZONA
TABLE OF CONTENTS
CONTENTS
PAGE
Independent Accountant’s Report on Applying Agreed-Upon Procedures
1
Results of Procedures
3
Appendix A – Progress of Infrastructure Improvement Plan Projects
7
INDEPENDENT ACCOUNTANT’S REPORT ON
APPLYING AGREED-UPON PROCEDURES
Honorable Mayor and Members of the City Council
City of Chandler, Arizona
We have performed this agreed-upon procedures engagement to assist management of the City of
Chandler, Arizona (City), with the requirement set forth in Arizona Revised Statutes (A.R.S.)
9-463.05.G.2 “to provide for a biennial certified audit of the municipality’s land use assumptions,
infrastructure improvements plan and development fees.” As such, we have performed the
procedures identified below, solely to assist users in evaluating the City’s compliance with the
progress reporting requirements of the infrastructure improvement plan for the period from
July 1, 2018 through June 30, 2020, as specified in A.R.S. 9-463.05.G.2. City of Chandler,
Arizona’s management is responsible for its compliance with those requirements.
City of Chandler, Arizona’s management has agreed to and acknowledged that the procedures
performed are appropriate to meet the intended purpose of assisting users in determining whether
the City complied with the specified requirements. This report may not be suitable for any other
purpose. The procedures performed may not address all the items of interest to a user of this report
and may not meet the needs of all users of this report and, as such, users are responsible for
determining whether the procedures performed are appropriate for their purposes.
We have applied the following procedures:
The progress of the infrastructure improvements plan.
a.
Compared growth projections for 2019 and 2020 related to dwelling units, population,
and the various commercial square footage units as reported in the Infrastructure
Improvement Plan (IIP) to actual results for the proportionate 10-year projections. A
list of all variances are reported in the Results of Procedures.
b.
Obtained City-prepared report (see Appendix A) documenting the progress of each
project identified in the Infrastructure Improvement Plan (IIP) and performed the
following procedures:
i.
Agreed expenditures as of June 30, 2020 to the underlying accounting records.
ii.
Agreed amounts reported as estimated cost to complete to underlying
accounting records.
The collection and expenditures of impact fees for each project in the plan.
c.
Selected a sample of 80 building permits issued and determined fees were charged in
accordance with authorized fee schedules and that each permit holder was charged the
same rate as another equivalent permit holder.
d.
Selected a sample of 50 expenditures and determined that the expenditures were
associated with an approved project in the City’s IIP.
Page 1
Evaluating any inequities in implementing the plan or imposing the impact fee.
e.
Evaluated any inequities in implementing the plan or imposing the impact fee through
recalculating impact fees at the transaction level for the sample mentioned in procedure
c above.
f.
Determined that there were no instances in which the City waived impact fees, except
as allowed for under A.R.S. 9-499.10.B and A.R.S. 9-500.18.
The accompanying Results of Procedures describes the items we noted.
We were engaged by City of Chandler, Arizona’s management to perform this agreed-upon
procedures engagement and conducted our engagement in accordance with attestation standards
established by the American Institute of Certified Public Accountants. We were not engaged to
and did not conduct an examination or review engagement, the objective of which would be the
expression of an opinion or conclusion, respectively, on compliance with the specified
requirements. Accordingly, we do not express such an opinion or conclusion. Had we performed
additional procedures, other matters might have come to our attention that would have been
reported to you.
We are required to be independent of City of Chandler, Arizona’s management and to meet our
other ethical responsibilities, in accordance with the relevant ethical requirements related to our
agreed-upon procedures engagement.
This report is intended solely for the information and use of the management of City of Chandler,
Arizona, and is not intended to be and should not be used by anyone other than these specified
parties.
Heinfeld, Meech & Co., P.C.
Scottsdale, Arizona
August 9, 2021
Page 2
CITY OF CHANDLER, ARIZONA
RESULTS OF PROCEDURES
PROCEDURE A
Compared growth projections for 2019 and 2020 related to dwelling units, population, and the
various commercial square footage units as reported in the City’s Land Use Assumptions and
Infrastructure Improvements Plan (IIP) to actual current amounts for the proportionate 10-year
projections. A list of all variances will be reported.
Exception:
Variances were noted for growth projections for dwelling units, population, and the various
commercial square footage as reported in the Land Use Assumptions and Infrastructure
Improvements Plan when compared to actual results.
Management Response:
Assumptions of equal growth of land development and the resulting fees averaged over a set
period of time do not reflect the reality of how development occurs. Variances exist due to
market conditions, demand for various types of land use and structures, the condition of the
economy, and the availability of capital. The City of Chandler continues to take into account
annual planning projections, entitled projects, and variations in construction permits to augment
the equal growth assumptions when forecasting.
TOTAL SQUARE FOOTAGE
Note: The cumulative projected amounts for square footage assume equal growth for each year
of the 10-year period with the incremental cumulative total presented for each year.
Cumulative Total as of 2019
Projected
Actual
Variance
Variance %
Industrial
Citywide
36,000,333
34,985,871
(1,014,462)
-3%
Arterial Streets
16,579,846
14,944,267
(1,635,579)
-10%
Institutional
Citywide
12,532,455
11,431,010
(1,101,445)
-9%
Arterial Streets
6,565,177
6,436,229
(128,948)
-2%
Office
Citywide
9,190,908
8,834,429
(356,479)
-4%
Arterial Streets
3,698,064
4,358,388
660,324
18%
Retail
Citywide
18,592,700
18,800,613
207,914
1%
Arterial Streets
7,596,680
8,224,186
627,506
8%
Page 3
CITY OF CHANDLER, ARIZONA
RESULTS OF PROCEDURES
PROCEDURE A (Continued)
TOTAL SQUARE FOOTAGE
Cumulative Total as of 2020
Projected
Actual
Variance
Variance %
Industrial
Citywide
36,898,172
36,049,567
(848,605)
-2%
Arterial Streets
17,296,903
15,920,562 (1,376,341)
-8%
Institutional
Citywide
12,606,943
11,807,767
(799,176)
-6%
Arterial Streets
6,641,469
6,802,070
160,601
2%
Office
Citywide
9,663,449
9,288,568
(374,881)
-4%
Arterial Streets
3,931,666
4,691,153
759,487
19%
Retail
Citywide
18,755,614
18,913,407
157,793
1%
Arterial Streets
7,723,592
8,311,712
588,120
8%
TOTAL HOUSING UNITS AND POPULATION BY SERVICE AREA
Note: The cumulative projected amounts for housing units and population assume equal growth
for each year of the 10-year period with the incremental cumulative total presented for each
year.
Cumulative Total as of 2019
Projected
Actual
Variance
Variance %
Single Family
Parks Northwest
11,709
11,770
61
1%
Parks Northeast
34,785
35,113
328
1%
Park Southeast
32,557
33,148
592
2%
Citywide
79,051
80,031
980
1%
Arterial Streets
43,345
50,318
6,973
16%
MultiFamily
Parks Northwest
4,959
5,189
230
5%
Parks Northeast
16,256
17,016
760
5%
Park Southeast
7,164
7,964
800
11%
Citywide
28,379
30,169
1,790
6%
Arterial Streets
11,200
14,613
3,414
30%
Resident Population
Parks Northwest
42,206
41,638
(568)
-1%
Parks Northeast
128,285
127,136
(1,149)
-1%
Park Southeast
104,771
104,631
(140)
0%
Citywide
275,262
273,405
(1,857)
-1%
Arterial Streets
142,644
163,623
20,979
15%
Page 4
CITY OF CHANDLER, ARIZONA
RESULTS OF PROCEDURES
PROCEDURE A (Continued)
Cumulative Total as of 2020
Projected
Actual
Variance
Variance %
Single Family
Parks Northwest
11,715
11,780
65
1%
Parks Northeast
34,838
35,169
331
1%
Park Southeast
32,710
33,241
531
2%
Citywide
79,263
80,190
927
1%
Arterial Streets
43,491
50,466
6,975
16%
MultiFamily
Parks Northwest
4,967
5,324
357
7%
Parks Northeast
16,698
17,151
453
3%
Park Southeast
7,164
8,389
1,225
17%
Citywide
28,829
30,864
2,035
7%
Arterial Streets
11,257
15,173
3,916
35%
Resident Population
Parks Northwest
42,238
41,922
(316)
-1%
Parks Northeast
129,271
127,543
(1,728)
-1%
Park Southeast
104,771
105,690
919
1%
Citywide
276,280
275,155
(1,125)
0%
Arterial Streets
143,164
165,087
21,923
15%
PROCEDURE B
Obtained City-prepared report (see Appendix A) documenting the progress of each project
identified in the Infrastructure Improvement Plan (IIP) and performed the following procedures:
a.
Agreed expenditures as of June 30, 2020 to the underlying accounting records.
b. Agreed amounts reported as estimated cost to complete to underlying accounting
records.
No exceptions noted.
PROCEDURE C
Selected a sample of 80 building permits issued and determine fees were charged in accordance
with authorized fee schedules and that each permit holder is charged the same rate as another
equivalent permit holder.
No exceptions noted.
PROCEDURE D
Selected a sample of 50 expenditures and determine that the expenditure was associated with an
approved project in the City’s IIP.
No exceptions noted.
Page 5
CITY OF CHANDLER, ARIZONA
RESULTS OF PROCEDURES
PROCEDURE E
Evaluated any inequities in implementing the plan or imposing the impact fee through
recalculating impact fees at the transaction level for the sample mentioned in procedure c above.
No exceptions noted.
PROCEDURE F
Determined that there were no instances in which the City waived impact fees, except as allowed
for under A.R.S. 9-499.10.B and A.R.S. 9-500.18
No exceptions noted.
Page 6
APPENDIX A
PROGRESS OF INFRASTRUCTURE IMPROVEMENT PLAN PROJECTS
Fund
Description
415 Arterial Street Impact Fees
2013‐14
2014‐15
2015‐16
2016‐17
2017‐18
2018‐19
2019‐20
2020‐21
though
2029‐30*
Total
6ST311‐Price Rd and Queen Creek Intersection
‐
‐
‐
‐
(190,862)
‐
‐
‐
(190,862)
6ST478‐McQueen Rd (Queen Creek Rd to Riggs Rd)
693,261
365,149
401,157
722,149
542
‐
‐
‐
2,182,258
6ST482‐Gilbert Rd (Germann Rd to Queen Creek Rd)
‐
‐
‐
‐
(127,921)
‐
‐
‐
(127,921)
6ST548‐Queen Creek Rd (McQueen Rd to Gilbert Rd)
‐
‐
‐
262,288
246,143
601,762
2,100,347
‐
3,210,541
6ST596‐Gilbert Rd (Queen Creek Rd to Riggs Rd)
8,547,368
3,297,428
484,152
20,705
‐
‐
‐
‐
12,349,653
6ST607‐Ocotillo Rd (Arizona Ave to McQueen Rd)
1,335,663
2,245,004
659,940
490
‐
(1,011)
‐
‐
4,240,085
6ST608‐Chandler Heights (Arizona Ave to McQueen Rd)
‐
3,775
32,904
114,167
570,702
‐
1,182,277
‐
1,903,825
6ST641‐Ocotillo Rd (Cooper Rd to 148th St)
‐
‐
147,647
513,530
1,670,914
‐
334,675
3,050,000
5,716,766
6ST675‐Cooper Rd (Queen Creek Rd to Riggs Rd)
‐
2,830
13,741
27,077
160,594
‐
45,614
‐
249,856
6ST692‐Chandler Heights Rd (McQueen Rd to Val Vista Dr)
‐
‐
‐
‐
181,765
469,687
119,741
19,966,977
20,738,170
6ST693‐Lindsay Rd (Ocotillo Rd to Hunt Hwy)
‐
‐
‐
‐
‐
‐
17,915
18,589,500
18,607,415
6ST738‐Gilbert Rd (Ocotillo Rd to Chandler Heights Rd)
‐
‐
‐
‐
‐
‐
213,989
‐
213,989
6ST745‐Alma School Rd (Chandler Blvd to Pecos Rd)
‐
‐
‐
‐
‐
‐
‐
2,097,600
2,097,600
6ST746‐Alma School Rd (Pecos Rd to Germann Rd)
‐
‐
‐
‐
‐
‐
176,985
2,805,100
2,982,085
6ST747‐Alma School Rd (Germann Rd to Queen Creek Rd)
‐
‐
‐
‐
‐
‐
‐
2,771,600
2,771,600
*As programmed in 2021‐2030 CIP
421 Community Park Impact Fees
2013‐14
2014‐15
2015‐16
2016‐17
2017‐18
2018‐19
2019‐20
Total
6PR396‐Mesquite Groves Park
1,310
‐
‐
‐
‐
‐
‐
1,310
Note: This fund was expended and closed as of 6/30/17.
422 Neighborhood Parks Impact Fees
2013‐14
2014‐15
2015‐16
2016‐17
2017‐18
2018‐19
2019‐20
Total
6PR039‐Neighborhood Park Land Acquisition
478
869
3,087
‐
‐
‐
‐
4,434
6PR389‐Homestead North Park Site
‐
‐
‐
‐
‐
22,445
72,723
95,168
6PR400‐Roadrunner Park
400,208
‐
‐
‐
‐
‐
‐
400,208
6PR631‐Centennial Park Site
68,764
11,553
‐
‐
‐
‐
‐
80,317
Note: This fund was expended and closed as of 6/30/20.
424 Park Impact Fees
2013‐14
2014‐15
2015‐16
2016‐17
2017‐18
2018‐19
2019‐20
2020‐21
though
2029‐30*
Total
6PR389‐Homestead North Park Site
‐
‐
‐
‐
‐
27,588
25,564
‐
53,151
6PR390‐Homestead South Park Site
‐
‐
‐
‐
‐
‐
‐
‐
‐
6PR396‐Mesquite Groves Park Site
‐
3,764
‐
‐
‐
‐
‐
6,056,137
6,059,901
6PR400‐Roadrunner Park Site
716,453
5,872
‐
‐
‐
‐
‐
‐
722,326
6PR420‐Veteran's Oasis Park Site
‐
‐
‐
‐
(59,740)
‐
‐
‐
(59,740)
6PR631‐Centennial Park Site
702,813
678,786
12,843
4,672
‐
‐
‐
‐
1,399,114
6PR638‐Valencia Park Site
545,550
817,682
‐
‐
‐
‐
‐
‐
1,363,232
6PR639‐Citrus Vista Park Site
‐
278,330
1,412,990
4,995
‐
‐
‐
‐
1,696,315
6PR640‐Layton Lakes Park Site
‐
‐
‐
141,285
1,191,476
139,376
‐
‐
1,472,137
*As programmed in 2021‐2030 CIP
Fiscal Year
Note: Any negative amounts presented are expense recoveries from prior years.
Page 7
APPENDIX A
PROGRESS OF INFRASTRUCTURE IMPROVEMENT PLAN PROJECTS
Fund
Description
425 Parks NW Impact Fees
2013‐14
2014‐15
2015‐16
2016‐17
2017‐18
2018‐19
2019‐20
2020‐21
though
2029‐30**
Total
None
‐
‐
‐
‐
‐
‐
‐
‐
‐
**No growth‐related capital to construct; collecting fees to repay pledged debt
426 Parks NE Impact Fees
2013‐14
2014‐15
2015‐16
2016‐17
2017‐18
2018‐19
2019‐20
2020‐21
though
2029‐30**
Total
None
‐
‐
‐
‐
‐
‐
‐
‐
‐
**No growth‐related capital to construct; collecting fees to repay pledged debt
427 Parks SE Impact Fees
2013‐14
2014‐15
2015‐16
2016‐17
2017‐18
2018‐19
2019‐20
2020‐21
though
2029‐30*
Total
6PR396‐Mesquite Groves Park Site
‐
‐
‐
‐
‐
‐
‐
4,372,763
4,372,763
6PR629‐Lantana Ranch Park Site
‐
‐
‐
‐
‐
‐
88,854
7,955,214
8,044,068
*As programmed in 2021‐2030 CIP
465 Police Impact Fees
2013‐14
2014‐15
2015‐16
2016‐17
2017‐18
2018‐19
2019‐20
2020‐21
though
2029‐30**
Total
6PD243‐Chandler Heights Subtation
‐
‐
‐
‐
(59,740)
‐
‐
‐
(59,740)
**No growth‐related capital to construct; collecting fees to repay pledged debt
475 Fire Impact Fees
2013‐14
2014‐15
2015‐16
2016‐17
2017‐18
2018‐19
2019‐20
2020‐21
though
2029‐30**
Total
6FI611‐Southeast Fire Station
‐
‐
797
361,261
3,579,131
295,842
‐
‐
4,237,031
6FI638‐Fire Station No. 1 Relocation
‐
3,164,000
147,100
‐
‐
‐
‐
‐
3,311,100
**No growth‐related capital to construct; collecting fees to repay pledged debt
603 Water System Development Fees
2013‐14
2014‐15
2015‐16
2016‐17
2017‐18
2018‐19
2019‐20
2020‐21
though
2029‐30**
Total
6WA029‐Water Master Plan Update
‐
6,609
‐
133,055
56,495
1,553
‐
‐
197,712
6WA034‐Well Construction/Rehabilitation
486,660
505,275
2,260,447
1,807,500
894,025
718,077
1,637,212
‐
8,309,195
6WA076‐Transmission Mains
1,986,478
238,624
‐
‐
‐
‐
‐
‐
2,225,102
6WA334‐Joint Water Treatment Plant
‐
356
‐
6,418,629
19,857,848
1,639,976
1,020,748
‐
28,937,557
6WA672‐Water Purchases
‐
‐
‐
9,999,788
4,999,940
4,999,940
14,731,755
‐
34,731,423
**No growth‐related capital to construct; collecting fees to repay pledged debt
604 Water Resource System Development Fees
2013‐14
2014‐15
2015‐16
2016‐17
2017‐18
2018‐19
2019‐20
Total
6WW661‐Ocotillo Water Reclamation Facility Expansion
‐
‐
748,052
2,763,414
488,533
‐
‐
4,000,000
6WA672‐Water Purchases
‐
‐
‐
‐
‐
‐
128,827
128,827
Note: This fund was expended and closed as of 6/30/20.
Fiscal Year
Page 8
APPENDIX A
PROGRESS OF INFRASTRUCTURE IMPROVEMENT PLAN PROJECTS
Fund
Description
610 Reclaimed Water System Development Fees
2013‐14
2014‐15
2015‐16
2016‐17
2017‐18
2018‐19
2019‐20
2020‐21
though
2029‐30*
Total
6WW189‐Effluent Reuse‐Storage
68,757
335,111
97,991
876,519
15,513
151,138
294,279
2,010,000
3,849,308
6WW192‐Effluent Reuse‐Transmission Mains
441,068
464,587
1,422,386
158,361
868,974
3,198,432
212,433
‐
6,766,243
*As programmed in 2021‐2030 CIP
614 Wastewater System Development Fees
2013‐14
2014‐15
2015‐16
2016‐17
2017‐18
2018‐19
2019‐20
2020‐21
though
2029‐30**
Total
6WW021‐Wastewater Master Plan Update
181,812
25,191
157,935
266,114
112,989
3,107
‐
‐
747,148
6WW022‐Water Reclamation Facility Expansion
3,806,769
292,665
20,126
540
‐
‐
‐
‐
4,120,101
6WW196‐Collection System Facility Improvements
2,447,175
‐
‐
‐
‐
‐
‐
‐
2,447,175
6WW651‐Wastewater Land Acquistion
5,560,271
‐
‐
‐
‐
‐
‐
‐
5,560,271
6WW642‐South Chandler Sewer Line Expansion
2,777
‐
‐
‐
‐
‐
‐
‐
2,777
6WW661‐Ocotillo Water Reclamation Facility Expansion
‐
6,268,168
19,505,029
79,677,431
14,085,867
‐
‐
‐
119,536,496
**No growth‐related capital to construct; collecting fees to repay pledged debt
Fiscal Year
Page 9