Biennial LUA and IIP 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, 2020 through June 30, 2022
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, 2020 through June 30, 2022, 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 2021 and 2022 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, 2022 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 and to meet our other ethical
responsibilities, in accordance with 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 24, 2023
Page 2
CITY OF CHANDLER, ARIZONA
RESULTS OF PROCEDURES
PROCEDURE A
Compared growth projections for 2021 and 2022 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 2021
Projected
Actual
Variance
Variance %
Industrial
Citywide
37,796,012
40,508,493
2,712,481
7%
Arterial Streets
18,013,960
19,747,031
1,733,071
10%
Institutional
Citywide
12,681,430
12,339,915
(341,515)
-3%
Arterial Streets
6,717,760
7,323,197
605,437
9%
Office
Citywide
10,135,991
8,236,624
(1,899,367)
-19%
Arterial Streets
4,165,269
3,636,165
(529,104)
-13%
Retail
Citywide
18,918,529
18,870,833
(47,696)
0%
Arterial Streets
7,850,505
8,256,576
406,071
5%
Page 3
CITY OF CHANDLER, ARIZONA
RESULTS OF PROCEDURES
PROCEDURE A (Continued)
TOTAL SQUARE FOOTAGE
Cumulative Total as of 2022
Projected
Actual
Variance
Variance %
Industrial
Citywide
38,693,852
45,475,860
6,782,008
18%
Arterial Streets
18,731,017
24,237,959
5,506,942
29%
Institutional
Citywide
12,755,918
12,407,444
(348,474)
-3%
Arterial Streets
6,794,051
7,058,323
264,272
4%
Office
Citywide
10,608,532
7,915,915
(2,692,617)
-25%
Arterial Streets
4,398,871
3,752,388
(646,483)
-15%
Retail
Citywide
19,081,443
18,771,901
(309,542)
-2%
Arterial Streets
7,977,417
7,689,295
(288,122)
-4%
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 2021
Projected
Actual
Variance
Variance %
Single Family
Parks Northwest
11,727
12,211
484
4%
Parks Northeast
34,943
36,000
1,057
3%
Park Southeast
33,017
35,611
2,594
8%
Citywide
79,686
83,822
4,136
5%
Arterial Streets
43,785
47,732
3,947
9%
MultiFamily
Parks Northwest
4,982
5,269
287
6%
Parks Northeast
17,581
18,049
468
3%
Park Southeast
7,164
9,381
2,217
31%
Citywide
29,728
32,699
2,971
10%
Arterial Streets
11,372
14,584
3,212
28%
Resident Population
Parks Northwest
42,301
44,574
2,273
5%
Parks Northeast
131,243
137,825
6,582
5%
Park Southeast
104,771
114,730
9,959
10%
Citywide
278,315
297,129
18,814
7%
Arterial Streets
144,204
158,906
14,702
10%
Page 4
CITY OF CHANDLER, ARIZONA
RESULTS OF PROCEDURES
PROCEDURE A (Continued)
Cumulative Total as of 2022
Projected
Actual
Variance
Variance %
Single Family
Parks Northwest
11,727
11,856
129
1%
Parks Northeast
34,943
33,471
(1,472)
-4%
Park Southeast
33,017
35,611
2,594
8%
Citywide
79,686
80,938
1,252
2%
Arterial Streets
43,785
52,349
8,564
20%
MultiFamily
Parks Northwest
4,982
5,624
642
13%
Parks Northeast
17,581
20,034
2,453
14%
Park Southeast
7,164
9,381
2,217
31%
Citywide
29,728
35,039
5,311
18%
Arterial Streets
11,372
17,828
6,456
57%
Resident Population
Parks Northwest
42,301
44,574
2,273
5%
Parks Northeast
131,243
136,438
5,194
4%
Park Southeast
104,771
114,730
9,959
10%
Citywide
278,315
295,741
17,426
6%
Arterial Streets
144,204
178,951
34,747
24%
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, 2022 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.
Exception:
For one of 80 building permits reviewed, the incorrect land use type was utilized for the fee
calculation. The Retail Commercial land use type was utilized instead of the Public/Institutional
land use type. This resulted in an overcharge of approximately $14,700.
Management Response:
The City agrees with the error identified when a permit pulled for a religious education center
with office space was assigned the office classification instead of institutional, a refund has
been issued to the permittee.
Page 5
CITY OF CHANDLER, ARIZONA
RESULTS OF PROCEDURES
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.
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
2015‐16
2016‐17
2017‐18
2018‐19
2019‐20
2020‐21
2021‐22
2022‐23
though
2031‐32*
Total
6ST311‐Price Rd and Queen Creek Intersection
‐
‐
(190,862)
‐
‐
‐
‐
‐
(190,862)
6ST478‐McQueen Rd (Queen Creek Rd to Riggs Rd)
401,157
722,149
542
‐
‐
‐
‐
‐
1,123,848
6ST482‐Gilbert Rd (Germann Rd to Queen Creek Rd)
‐
‐
(127,921)
‐
‐
‐
‐
‐
(127,921)
6ST548‐Queen Creek Rd (McQueen Rd to Lindsay Rd)
‐
262,288
246,143
601,762
2,100,347
153,606
‐
3,364,147
6ST596‐Gilbert Rd (Queen Creek Rd to Riggs Rd)
484,152
20,705
‐
‐
‐
‐
504,857
6ST607‐Ocotillo Rd (Arizona Ave to McQueen Rd)
659,940
490
‐
(1,011)
‐
‐
659,419
6ST608‐Chandler Heights (Arizona Ave to McQueen Rd)
32,904
114,167
570,702
‐
1,182,277
2,983
‐
1,903,033
6ST641‐Ocotillo Rd (Cooper Rd to 148th St)
147,647
513,530
1,670,914
‐
334,675
48,918
35,048
4,382,277
7,133,009
6ST675‐Cooper Rd (Queen Creek Rd to Riggs Rd)
13,741
27,077
160,594
‐
45,614
2,294,623
2,644,544
596,565
5,782,758
6ST692‐Chandler Heights Rd (McQueen Rd to Val Vista Dr)
‐
‐
181,765
469,687
119,741
122,793
858,848
18,407,675
20,160,509
6ST693‐Lindsay Rd (Ocotillo Rd to Hunt Hwy)
‐
‐
‐
‐
17,915
110,764
84,842
19,713,656
19,927,177
6ST738‐Gilbert Rd (Ocotillo Rd to Chandler Heights Rd)
‐
‐
‐
‐
213,989
(213,989)
‐
‐
6ST745‐Alma School Rd (Chandler Blvd to Pecos Rd)
‐
‐
‐
‐
‐
8,280,000
8,280,000
6ST746‐Alma School Rd (Pecos Rd to Germann Rd)
‐
‐
‐
‐
176,985
2,405,803
1,214,127
200,712
3,997,627
6ST747‐Alma School Rd (Germann Rd to Queen Creek Rd)
‐
‐
‐
‐
‐
‐
‐
4,558,000
4,558,000
*As programmed in 2022‐2033 CIP
421 Community Park Impact Fees
2015‐16
2016‐17
2017‐18
2018‐19
2019‐20
2020‐21
2021‐22
Total
6PR396‐Mesquite Groves Park
‐
‐
‐
‐
‐
‐
‐
‐
Note: This fund was expended and closed as of 6/30/17.
422 Neighborhood Parks Impact Fees
2015‐16
2016‐17
2017‐18
2018‐19
2019‐20
2020‐21
2021‐22
Total
6PR039‐Neighborhood Park Land Acquisition
3,087
‐
‐
‐
‐
‐
‐
3,087
6PR389‐Homestead North Park Site
‐
‐
‐
22,445
72,723
95,168
6PR400‐Roadrunner Park
‐
‐
‐
‐
‐
‐
‐
‐
6PR631‐Centennial Park Site
‐
‐
‐
‐
‐
‐
‐
‐
Note: This fund was expended and closed as of 6/30/20.
424 Park Impact Fees
2015‐16
2016‐17
2017‐18
2018‐19
2019‐20
2020‐21
2021‐22
2022‐23
though
2031‐32*
Total
6PR389‐Homestead North Park Site
‐
‐
‐
27,588
25,564
55,091
684,404
2,658,568
3,451,215
6PR390‐Homestead South Park Site
‐
‐
‐
‐
‐
‐
‐
‐
‐
6PR396‐Mesquite Groves Park Site
‐
‐
‐
‐
‐
‐
‐
‐
‐
6PR400‐Roadrunner Park Site
‐
‐
‐
‐
‐
‐
‐
‐
‐
6PR420‐Veteran's Oasis Park Site
‐
‐
(59,740)
‐
‐
‐
‐
‐
(59,740)
6PR629‐Lantana Ranch Park
347,469
242,454
‐
589,923
6PR631‐Centennial Park Site
12,843
4,672
‐
‐
‐
‐
‐
‐
17,515
6PR638‐Valencia Park Site
‐
‐
‐
‐
‐
‐
‐
‐
‐
6PR639‐Citrus Vista Park Site
1,412,990
4,995
‐
‐
‐
‐
‐
‐
1,417,985
6PR640‐Layton Lakes Park Site
‐
141,285
1,191,476
139,376
‐
‐
‐
1,472,137
*As programmed in 2022‐2033 CIP
425 Parks NW Impact Fees
2015‐16
2016‐17
2017‐18
2018‐19
2019‐20
2020‐21
2021‐22
2022‐23
though
2031‐32*
Total
None
‐
‐
‐
‐
‐
‐
‐
‐
‐
**No growth‐related capital to construct; collecting fees to repay pledged debt
426 Parks NE Impact Fees
2015‐16
2016‐17
2017‐18
2018‐19
2019‐20
2020‐21
2021‐22
2022‐23
though
2031‐32*
Total
None
‐
‐
‐
‐
‐
‐
‐
‐
‐
**No growth‐related capital to construct; collecting fees to repay pledged debt
Fiscal Year
Note: Any negative amounts presented are expense recoveries from prior years.
Page 7
APPENDIX A
PROGRESS OF INFRASTRUCTURE IMPROVEMENT PLAN PROJECTS
427 Parks SE Impact Fees
2015‐16
2016‐17
2017‐18
2018‐19
2019‐20
2020‐21
2021‐22
2022‐23
though
2031‐32*
Total
6PR396‐Mesquite Groves Park Site
‐
‐
‐
‐
‐
‐
‐
20,519,300
20,519,300
6PR629‐Lantana Ranch Park Site
‐
‐
‐
‐
88,854
990,630
2,013,331
6,769,638
9,862,452
*As programmed in 2022‐2033 CIP
465 Police Impact Fees
2015‐16
2016‐17
2017‐18
2018‐19
2019‐20
2020‐21
2021‐22
2022‐23
though
2031‐32*
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
2015‐16
2016‐17
2017‐18
2018‐19
2019‐20
2020‐21
2021‐22
2022‐23
though
2031‐32*
Total
6FI611‐Southeast Fire Station
797
361,261
3,579,131
295,842
‐
‐
‐
4,237,031
6FI638‐Fire Station No. 1 Relocation
147,100
‐
‐
‐
‐
‐
‐
‐
147,100
**No growth‐related capital to construct; collecting fees to repay pledged debt
603 Water System Development Fees
2015‐16
2016‐17
2017‐18
2018‐19
2019‐20
2020‐21
2021‐22
2022‐23
though
2031‐32*
Total
6WA029‐Water Master Plan Update
‐
133,055
56,495
1,553
‐
‐
191,103
6WA034‐Well Construction/Rehabilitation
2,260,447
1,807,500
894,025
718,077
1,637,212
16,503
18,132
3,081,634
10,433,529
6WA076‐Transmission Mains
‐
‐
‐
‐
‐
‐
‐
6WA334‐Joint Water Treatment Plant
‐
6,418,629
19,857,848
1,639,976
1,020,748
975,052
29,912,253
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
2015‐16
2016‐17
2017‐18
2018‐19
2019‐20
2020‐21
2021‐22
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.
610 Reclaimed Water System Development Fees
2015‐16
2016‐17
2017‐18
2018‐19
2019‐20
2020‐21
2021‐22
2022‐23
though
2031‐32*
Total
6WW189‐Effluent Reuse‐Storage
97,991
876,519
15,513
151,138
294,279
210,689
2,171,057
833,847
4,651,034
6WW192‐Effluent Reuse‐Transmission Mains
1,422,386
158,361
868,974
3,198,432
212,433
1,738
241,830
6,104,155
*As programmed in 2022‐2033 CIP
614 Wastewater System Development Fees
2015‐16
2016‐17
2017‐18
2018‐19
2019‐20
2020‐21
2021‐22
2022‐23
though
2031‐32*
Total
6WW021‐Wastewater Master Plan Update
157,935
266,114
112,989
3,107
‐
‐
‐
540,145
6WW022‐Water Reclamation Facility Expansion
20,126
540
‐
‐
‐
‐
‐
‐
20,666
6WW196‐Collection System Facility Improvements
‐
‐
‐
‐
‐
‐
‐
‐
‐
6WW651‐Wastewater Land Acquistion
‐
‐
‐
‐
‐
‐
‐
‐
‐
6WW642‐South Chandler Sewer Line Expansion
‐
‐
‐
‐
‐
‐
‐
‐
‐
6WW661‐Ocotillo Water Reclamation Facility Expansion
19,505,029
79,677,431
14,085,867
‐
‐
‐
‐
‐
113,268,328
**No growth‐related capital to construct; collecting fees to repay pledged debt
Page 8