SDF Fee Update_Public Hearing Presentation

City Council Chambers
February 22, 2024
System Development Fee Update 
Public Hearing

Agenda
• Background and Program requirements
• Fee Categories / Service Areas
• Fee Update Summary and Comparisons
• Remaining Project Timeline

• SDF process governed by A.R.S. §9-463.05
• Developers pay SDFs during the building permit process
• One-time funding for growth-related capital infrastructure
• Cannot be used to fund repairs or operations & maintenance
• Cannot be used for capital that is not directly attributed to growth
• Must be infrastructure that is a necessary public service and that directly 
provides a beneficial use to the development
Background

SDFs have allowed Chandler 
to keep taxes low over the 
years.  Provided a capital 
funding source in lieu of 
selling bonds.
Examples of arterial streets, 
fire stations, police facilities, 
libraries, parks, and utilities 
projects completed with 
SDFs:
Why Charge
System Development Fees (SDFs)?
One of the 1st cities to 
implement the full range of 
SDFs “Impact Fees” in 1997 
in an effort to ensure growth 
pays for growth. 
SDF’s funded growth related 
infrastructure through the 
years, which was and still is 
paid by developers at the 
time of permitting.
If not for SDFs, Chandler 
would have had to find an 
alternative revenue source 
(e.g. additional bond 
elections & related taxes, 
etc.) to fund needed 
infrastructure as the city 
grew and continues to grow.
Desert Breeze Police Substation; 
Tumbleweed, Snedigar, Arbuckle, 
Roadrunner, Chuparosa, and Espee
parks,  Fire Stations 2-11, Mesquite 
Groves Aquatic Center, 
Water/Wastewater Mains, Wells, and 
Other Infrastructure, and all Major 
Arterial Street widenings.

Program Requirements
A.R.S. requires the following to ensure transparency and oversight
• Complete the Land Use Assumptions (LUA) and Infrastructure Improvements 
Plan (IIP) report as a precursor to Fee Updates based on methodology 
outlined in A.R.S.*
• Requires update every five years – legally required by January of 2029
• Last LUA & IIP Adoption - January of 2024
• Includes an updated fee schedule 
• Public outreach and Council approval process
• Prepare an “Annual Report” and post online 
• Includes actual results for the previous year
• Complete Biennial Audit*
• Results require a Public Hearing 
* Must be Prepared by a Qualified Professional

Water
Fire
Reclaimed Water
Wastewater
Police
Arterial Streets 
Building 
Permits
Parks -
Three Service Areas
Public Buildings
Fees Charged by Equivalent 
Dwelling Unit (EDU) or SQ FT 
Fees by Meter Size
Fee Category Summary

Arterial Streets Service Area
(Excludes northwest area of city limits where arterial streets 
were funded with Improvement Districts)

Parks Service Areas

Fee Update Summary

Fee Update Summary

City of Chandler
SDF Permit Examples

Single Family SDF – Permit Example 
Northeast Service Area
Category
Current 
Fee
% of 
Current
Total
Proposed 
Fee
% of 
Proposed 
Total
% 
Change
in Fee
Arterial Street
$3,869
30%
$3,792 
27%
-2%
Parks (NE service area)
237
2%
129
1%
-46%
All Other Non-Utility*
455
4%
492
4%
8%
Utility
8,258
64%
9,543
68%
16%
Total Single Family Fee
$12,819
$13,956 
9%
* All Other Non-Utility Includes: Police, Fire, Public Buildings (excluded Library)

Single Family SDF – Permit Example 
Southeast Service Area
Category
Current 
Fee
% of 
Current
Total
Proposed 
Fee
% of 
Proposed 
Total
% 
Change
in Fee
Arterial Street
$3,869
26%
$3,792 
20%
-2%
Parks (SE service area)
2,338
16%
5,242
27%
124%
All Other Non-Utility*
455
3%
492
3%
8%
Utility
8,258
55%
9,543
50%
16%
Total Single Family Fee
$14,920
$19,069 
28%
* All Other Non-Utility Includes: Police, Fire, Public Buildings (excluded Library)

Multi-Family SDF – Permit Example per Unit 
Northeast Service Area
Category
Current 
Fee
% of 
Current
Total
Proposed 
Fee
% of 
Proposed 
Total
% 
Change
in Fee
Arterial Street
$2,190
35%
$2,059 
32%
-6%
Parks (NE service area)
176
3%
109
2%
-38%
All Other Non-Utility*
334
5%
400
6%
20%
Utility
3,624
57%
3,825
60%
6%
Total Multi-Family Fee
$6,324
$6,393 
1%
• All Other Non-Utility Includes: Police, Fire, Public Buildings (excludes Library)

Multi-Family SDF – Permit Example per Unit 
Southeast Service Area
Category
Current 
Fee
% of 
Current
Total
Proposed 
Fee
% of 
Proposed 
Total
% 
Change
in Fee
Arterial Street
$2,190
28%
$2,059 
19%
-6%
Parks (SE service area)
1,735
22%
4,424
41%
155%
All Other Non-Utility*
334
4%
400
4%
20%
Utility
3,624
46%
3,825
36%
6%
Total Multi-Family Fee
$7,883
$10,708 
36%
• All Other Non-Utility Includes: Police, Fire, Public Buildings (excludes Library)

Commercial or Retail SDF Permit Example
Category
Current   
Fee
% of 
Current
Total
Proposed 
Fee
% of 
Proposed 
Total
% 
Change
in Fee
Arterial Street
$504,000
82%
$389,400 
75%
-23%
All Other Non-Utility*
47,000
8%
52,100
10%
11%
Utility
66,064
11%
76,344
15%
16%
Total Commercial Fee
$617,064
$517,844 
-16%
* All Other Non-Utility Includes: Police, Fire, Public Buildings  
Note: Fees based on 100,000 sq ft building with a 2” meter

Office SDF Permit Example
Category
Current 
Fee
% of 
Current
Total
Proposed 
Fee
% of 
Proposed 
Total
% 
Change
in Fee
Arterial Street
$404,000
79%
$534,700 
84%
32%
All Other Non-Utility*
39,000
8%
29,000
5%
-26%
Utility
66,064
13%
76,344
12%
16%
Total Office Fee
$509,064
$640,044 
26%
* All Other Non-Utility Includes: Police, Fire, Public Buildings 
Note: Fees based on 100,000 sq ft building with a 2” meter

Industrial SDF Permit Example 
Category
Current 
Fee
% of 
Current
Total
Proposed 
Fee
% of 
Proposed 
Total
% 
Change
in Fee
Arterial Street
$117,000
61%
$105,000 
54%
-10%
All Other Non-Utility*
8,000
4%
11,500
6%
44%
Utility
66,064
35%
76,344
40%
16%
Total Industrial Fee
$191,064
$192,844 
1%
* All Other Non-Utility Includes: Police, Fire, Public Buildings
Note: Fees based on 100,000 sq ft building with a 2” meter

Institutional SDF Permit Example
Category
Current 
Fee
% of 
Current
Total
Proposed 
Fee
% of 
Proposed 
Total
% 
Change
in Fee
Arterial Street
$97,000
55%
$197,600 
67%
104%
All Other Non-Utility*
12,000
7%
23,000
8%
92%
Utility
66,064
38%
76,344
26%
16%
Total Institutional Fee
$175,064
$296,944 
70%
* All Other Non-Utility Includes: Police, Fire, Public Buildings 
Note: Fees based on 100,000 sq ft building with a 2” meter

Project Timeline
Public 
Outreach –
Oct. 2023 &
Council 
Work 
Session      
Dec. 4, 2023 
COMPLETE
Public 
Hearing –
LUA & IIP 
Report
Dec. 7, 2023
COMPLETE
Adopt LUA 
and IIP 
Report
January 11, 
2024
COMPLETE
Adopt Notice 
of Intent to 
modify SDF 
fees
January 11, 
2024
COMPLETE
Public 
Hearing on 
Proposed 
SDF fees & 
First Read of 
Ordinance
Feb. 22, 2024
Final 
Adoption of 
Ordinance to 
modify SDF 
fees 
April 4, 2024
New Fees 
Effective 
Date
July 1, 2024

Thank you 
Questions?