SDF Audit Public Hearing PPT

City of Chandler — Study Session (2025-03-24)

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Biennial System Development Fee 
Audit Results 
Public Hearing | March 27, 2025 | City Council Chambers

Overview of State Statute Requirements
If a City Collects SDF (Impact) Fees
1) Annual Report – Filed annually on website and with City Clerk
2) Biennial Audit – Complete an audit and hold a public hearing 
of results (tonight)
3) SDF update to Land Use Assumptions (LUA) and 
Infrastructure Improvement Plan (IIP) (every 5 years) 
• Adopted 2022-2032 LUA and IIP report – January 11, 2024
• Adopted Ordinance to modify SDF fees – April 4, 2024
• Fees effective July 1, 2024 
Note: May need to come back sooner than 5 years
to adjust the fees based on cost escalations

Background- Biennial Audit
• A.R.S. 9-463.05, Gives the requirement for Cities with SDF 
Fees to:
• Form advisory committee OR
• Perform biennial audit of SDF fee program
Chandler chose to perform 
the biennial audit
(Currently, all Arizona communities collecting 
SDFs perform the audit versus forming an 
Advisory Committee)

• Conducted by Heinfeld, 
Meech & Co.
• Covers FY 2022-23 and 
FY 2023-24
Biennial Audit

• Compared growth projections to Land Use Assumptions (LUA) and 
Infrastructure Improvements Plan (IIP)
• Reviewed progress of IIP projects
• Reviewed and tested the fee collections and capital project expenditures
Audit Procedures

Results
• Other than growth projections slightly different from actual growth, 
no exceptions reported
• Tonight, the requirement to present the biennial audit and hold a 
public hearing has been met and is the last step in the audit process

No formal action required
Questions