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City of Chandler
Annual Comprehensive
Financial Report
Fiscal Year Ended June 30, 2025
“Making it Happen”
CITY OF CHANDLER, ARIZONA
ANNUAL COMPREHENSIVE FINANCIAL REPORT
FOR THE YEAR ENDED JUNE 30, 2025
Prepared by
Management Services Department
Dawn Lang, Deputy City Manager|CFO
Kristi Smith, Financial Services Director
Julie Goucher, Accounting Senior Manager
TABLE OF CONTENTS
INTRODUCTORY SECTION
Letter of Transmittal ......................................................................................................................................
1
Elected and Appointed Officials ..................................................................................................................
9
Organizational Chart ......................................................................................................................................
10
Certificate of Achievement for Excellence in Financial Reporting .......................................................
11
FINANCIAL SECTION
Independent Auditor’s Report .....................................................................................................................
13
Management’s Discussion and Analysis (MD&A) ....................................................................................
19
Basic Financial Statements:
Government-wide Financial Statements -
Statement of Net Position ......................................................................................................................
32
Statement of Activities ............................................................................................................................
34
Fund Financial Statements:
Balance Sheet - Governmental Funds .................................................................................................
36
Reconciliation of the Governmental Funds Balance Sheet to the Government-wide
Statement of Net Position ......................................................................................................................
37
Statement of Revenues, Expenditures and Changes in Fund Balances - Governmental
Funds ..........................................................................................................................................................
38
Reconciliation of the Governmental Funds Statement of Revenues, Expenditures and
Changes in Fund Balances to the Government-wide Statement of Activities ............................
39
Statement of Net Position - Proprietary Funds .................................................................................
40
Statement of Revenues, Expenses and Changes in Net Position - Proprietary Funds .............
43
Statement of Cash Flows - Proprietary Funds ...................................................................................
44
Notes to the Financial Statements .........................................................................................................
46
Required Supplementary Information:
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual -
General Fund ............................................................................................................................................
93
Schedule of the Proportionate Share of the Net Pension Liability - Arizona State
Retirement System ..................................................................................................................................
94
Schedule of Contributions - All Pension Plans ..................................................................................
96
Schedule of Changes in the Net Pension Liability and Related Ratios - Public Safety
Personnel Retirement System - Police ................................................................................................
98
Schedule of Changes in the Net Pension Liability and Related Ratios - Public Safety
Personnel Retirement System - Fire ....................................................................................................
100
Schedule of Changes in OPEB Liabilities and Related Ratios - Single Employer Plan ..............
102
Notes to the Required Supplementary Information ........................................................................
104
CITY OF CHANDLER, ARIZONA
ANNUAL COMPREHENSIVE FINANCIAL REPORT
FOR THE YEAR ENDED JUNE 30, 2025
i
TABLE OF CONTENTS, continued
FINANCIAL SECTION, continued
Other Financial Statements:
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual:
General Obligation Bonds Debt Service ...........................................................................................
109
Non-Major Governmental Funds:
Combining Balance Sheet ....................................................................................................................
113
Combining Statement of Revenues, Expenditures and Changes in Fund Balances ..............
116
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual:
Highway User Special Revenue .........................................................................................................
119
Local Transportation Assistance Special Revenue .......................................................................
120
Grants Special Revenue ......................................................................................................................
121
Community Development Special Revenue ..................................................................................
122
Police Confiscated Property Special Revenue ...............................................................................
123
Parks and Recreation Special Revenue ...........................................................................................
124
Museum Special Revenue ..................................................................................................................
125
Library Special Revenue .....................................................................................................................
126
General Government Capital Projects ............................................................................................
127
Public Buildings Capital Projects ......................................................................................................
128
Grants Capital Projects .......................................................................................................................
129
Streets Capital Projects .......................................................................................................................
130
Community Services Capital Projects ..............................................................................................
131
Public Safety Buildings and Improvements Capital Projects .....................................................
132
Vehicle and Capital Equipment Replacement Capital Projects .................................................
133
Technology Replacement Capital Projects .....................................................................................
134
Municipal Arts Capital Projects .........................................................................................................
135
Non-Major Proprietary Funds:
Combining Statement of Net Position ..............................................................................................
138
Combining Statement of Revenues, Expenses and Changes in Net Position ..........................
141
Combining Statement of Cash Flows ................................................................................................
142
STATISTICAL SECTION
Financial Trends
Schedule 1, Net Position by Component .........................................................................................
146
Schedule 2a, Changes in Net Position ..............................................................................................
148
Schedule 2b, Changes in Net Position ..............................................................................................
150
Schedule 2c, Changes in Net Position ...............................................................................................
152
Schedule 3, Fund Balances of Governmental Funds .....................................................................
154
Schedule 4, Governmental Funds Revenues ...................................................................................
156
Schedule 5, Governmental Funds Expenditures and Debt Service Ratio .................................
158
CITY OF CHANDLER, ARIZONA
ANNUAL COMPREHENSIVE FINANCIAL REPORT
FOR THE YEAR ENDED JUNE 30, 2025
ii
TABLE OF CONTENTS, continued
STATISTICAL SECTION, continued
Financial Trends, Continued
Schedule 6, Other Financing Sources and Uses and Net Changes in Fund Balance -
Governmental Funds ............................................................................................................................
160
Revenue Capacity
Schedule 7, Taxable Revenue by Category ......................................................................................
162
Schedule 8, Direct and Overlapping Sales and Use Tax Rates ....................................................
164
Schedule 9, Principal Sales and Use Taxpayers ..............................................................................
165
Debt Capacity
Schedule 10, Ratios of Outstanding Debt ........................................................................................
166
Schedule 11, Direct and Overlapping Governmental Activities Debt ........................................
167
Schedule 12, Legal Debt Margin Information .................................................................................
168
Schedule 13a, Pledged-Revenue Coverage .....................................................................................
170
Schedule 13b, Pledged-Revenue Coverage .....................................................................................
171
Schedule 14, Property Tax Assessment Ratios ...............................................................................
172
Schedule 15, Property Taxes Levied and Collected .......................................................................
173
Schedule 16, Direct and Overlapping Assessed Valuations and Tax Rates Per $100
Assessed Valuation ...............................................................................................................................
174
Schedule 17, Property Value by Property Classification ...............................................................
175
Schedule 18, Net Assessed Limited Property Assessed Value of Major Taxpayers ...............
176
Schedule 19, Estimated Net Full Cash Value and Assessed Values ............................................
177
Schedule 20, Direct and Overlapping General Obligation Bonded Debt Ratios .....................
178
Schedule 21, Population Statistics .....................................................................................................
179
Schedule 22, Excise Tax Collections ..................................................................................................
180
Schedule 23, Transaction Privilege (Sales) Tax Rates by Category .............................................
181
Schedule 24, State Sales Tax Taxable Activities, Tax Rates and Distribution Share ...............
182
Schedule 25, Combined Schedule of Water and Sewer System Revenues, Expenses, Net
Revenues and Debt Service Coverage ..............................................................................................
183
Schedule 26, Utility Rate Increase History .......................................................................................
184
Schedule 27, Top 10 Water and Wastewater Customers .............................................................
185
Schedule 28, Number of Water and Wastewater Customers .....................................................
186
Schedule 29, Direct and Overlapping General Obligation Bonded Debt Outstanding ..........
188
Demographic and Economic Information
Schedule 30, Demographic and Economic Statistics .....................................................................
189
Schedule 31, Principal Employers ......................................................................................................
191
Operating Information
Schedule 32, Employees by Function ................................................................................................
192
Schedule 33, Operating Indicators by Function/Program ............................................................
194
Schedule 34, Capital Asset Statistics by Function/Program .........................................................
196
CITY OF CHANDLER, ARIZONA
ANNUAL COMPREHENSIVE FINANCIAL REPORT
FOR THE YEAR ENDED JUNE 30, 2025
iii
1
•
Letter of Transmittal
•
Elected and Appointed Officials
•
Organizational Chart
•
Certificate of Achievement for Excellence in Financial Reporting
Decades of award-winning
financial managment, and
purchasing practices are
indications of our stability and
strength.
Introductory Section
Introductory Section
Introductory Section
November 25, 2025
Honorable Mayor, Members of the City Council, City Manager, and residents of the City of Chandler:
The Annual Comprehensive Financial Report of the City of Chandler, Arizona (the city), for the year ended June
30, 2025, is hereby submitted in accordance with City Charter and State statutes. Both the City Charter and State
statutes require that the city issue annually a report on its financial position and activity, and that this report be
audited by an independent certified public accountant. Responsibility for both the accuracy of the data and the
completeness and fairness of the presentation, including all disclosures, rests with the city’s management. To
the best of our knowledge and belief, the enclosed data is accurate in all material respects and is reported in a
manner that fairly presents the financial position and results of operations of the various funds and component
units of the city.
Generally accepted accounting principles (GAAP) in the United States of America require that management
provide a narrative introduction, overview, and analysis to accompany the basic financial statements in the form
of Management’s Discussion and Analysis (MD&A). This letter of transmittal is designed to complement the
MD&A and should be read in conjunction with it. The City of Chandler’s MD&A can be found immediately
following the report of the independent auditors.
The city is required to undergo an annual single audit in conformity with the provisions of the Single Audit Act of
1996 and U.S. Office of Management and Budget Uniform Guidance. Information related to this single audit,
including a schedule of expenditures of federal awards, the independent auditors’ reports on the internal
control structure and compliance with applicable laws and regulations, and a schedule of findings and
questioned costs are included in a separately issued report.
GOVERNMENTAL STRUCTURE, LOCAL ECONOMIC CONDITION AND OUTLOOK
The city, incorporated on February 17, 1920, is located in the southeastern portion of Maricopa County, and
encompasses approximately 66 square miles. The city has operated under a council-manager form of
government since May 25, 1964, and is governed by the City Council, consisting of a mayor and a six member
council. Councilmembers are elected at-large on a staggered basis; the mayor and council members are elected
for four-year terms and are limited to two consecutive terms in office. The City Council is vested with policy and
legislative authority, and is responsible for passing ordinances, adopting the annual budget, appointing
committees, commissions, and board members, and appointing the positions of City Manager, City Attorney,
City Clerk, and City Magistrate. The City Manager is responsible for carrying out the policies and ordinances of
the City Council, as well as overseeing the day-to-day operations of the city.
Chandler is the fifth largest city in Arizona and is one of several major cities comprising the greater Phoenix
metropolitan area, which is the economic, political, and population center of the State of Arizona. The city’s
population has experienced remarkable growth over the past 25 years, increasing more than 65 percent, from
an estimated 176,581 in 2000 to 291,442 in 2025, based on intercensal population estimates. The city’s
manufacturing sector has been a major driver of economic growth during this time and includes high-tech
industrial companies such as Intel Corporation, Northrop Grumman, Microchip Technology, and NXP
Semiconductors. These four companies combine to employ approximately 17,000 people in the city. Total
manufacturing employment is over 30,000 with many companies in the supply chain also operating in Chandler.
Another industry that has experienced strong growth is financial services with companies such as Wells Fargo,
Bank of America, GM Financial Services and Toyota Financial Services establishing corporate offices in Chandler.
Information technology is another growth industry with Insight Enterprises Inc., a Fortune 500 company,
headquartered in Chandler.
Mailing Address
Mail Stop 609
PO Box 4008
Chandler, AZ 85244-4008
Management Services
Administration (480)782-2250
(480) 782-2253 Fax
chandleraz.gov
Location
Third Floor
175 S. Arizona Ave.
Chandler, AZ 85225
1
The city boasts a strong labor market serving the high technology field’s demand for skilled workers. Chandler’s
median age is 37.4 years, and the median household income is $113,802. In addition, 78 percent of the adult
population has a college degree or some college education. Nearly 27 percent of jobs in Chandler are in high
technology fields while the national average is about 10 percent, according to data from the Maricopa
Association of Governments and Bureau of Labor Statistics. The city’s unemployment rate averaged 3.5 percent
during fiscal year 2024-25 compared with 3.5 percent for Maricopa County and 3.9 percent for the State of
Arizona.
The city’s transaction privilege sales tax revenues, which comprise over 51 percent of its general fund,
decreased by 2.3 percent for fiscal year 2024-25 from the prior year actuals. The city continues to strengthen its
financial position and has benefited from ongoing and one-time revenues created by increased retail spending
and new development, including the $20+ billion Intel expansion that kicked off in February 2022. With
increased modest operating revenue growth, managing costs of services during a time of inflation and higher
cost of personnel in the market is critical. As the city ages, maintaining existing infrastructure is also a focus to
ensure quality amenities for residents and businesses. Consistently applying sound financial practices, achieving
notable economic development successes, and having a structured plan over the last ten years that has paid
down its Public Safety Personnel Retirement System (PSPRS) unfunded liability have helped the city continue its
strong financial position. This has contributed to Chandler's AAA General Obligation Bond and Excise Tax
Revenue Obligation bond credit ratings from all three ratings agencies.
The city enters into tax abatement agreements as part of economic development programs. Long-term impacts
from tax abatements are minimal and considered immaterial. Additional tax abatement details are included in
Note 18.
The City of Chandler’s continued goal is to provide the highest quality services to the community in the most
cost-effective manner. These services include Public Safety: Police and Fire; Community Services: Parks and
Recreation and Libraries; Cultural Development: Center for the Arts, Vision Gallery, and Museum; Public Works:
Streets and Traffic; Utilities: Water, Wastewater, Reclaimed Water and Solid Waste; Neighborhood Resources;
Development Services; Airport; Tax and Licensing and numerous internal services. The Council’s strategy to
achieve these results is through goals to improve Chandler in a coordinated manner and to make fiscally
responsible decisions that will continue to strengthen the city. The Chandler Industrial Development Authority,
the Chandler Cultural Foundation, the Chandler Museum Foundation, and the Chandler Housing and
Community Services Corporation are four legally separate entities, all of which are reported separately within
the city's financial statements. Additional detail on these entities can be found in Note 1.
In March 2023, the City Council re-established and/or altered six Focus Areas, identified below, to provide
guidance and direction as to what accomplishments the city should focus on and in what areas. The alterations
included an additional focus area added to delineate Community Safety from Quality of Life, and Mobility was
re-named Connectivity to focus on transportation and technology networks. Additional, Innovation and
Technology was changed to Sustainability and Technology to allow for better alignment of the advancements
being made toward sustainability. Good Governance continues to be a philosophy to support the overall goals
of the city, while other outlined focus areas concentrate efforts to make progress towards the City Council’s
vision.
•
Community Safety
Chandler is recognized among the safest cities in the nation. Our fire and police departments are
accredited and elite in their field. We ensure our community's safety with continued investment in
people, systems and technology. Innovative partnerships extend our ability to address emerging
community safety needs.
•
Connectivity
The ability to connect people, places and commerce through local, regional and virtual networks - is
essential. Chandler is served by three major highways, two railroad corridors, a well-planned street and
transit network, expending bike and shred-use paths and a municipal airport that efficiently connects
people and commerce. Chandler's advanced communication systems enhance our ability to connect
through technology and transportation networks.
2
•
Economic Vitality
Economic vitality includes the use of creative policies and marketing efforts that ensure Chandler
remains a world-class community for residents, visitors and businesses. Our approach preserves the
viability of employment corridors and positions properties for adaptive reuse, infill and redevelopment.
Chandler offers a business-focused environment for global industry leaders, exciting startups and
entrepreneurs through every stage of development. Our business climate, talented workforce and
lifestyle make Chandler a destination of choice for key industries.
•
Neighborhoods
To sustain an exceptional quality of life for Chandler residents, preservation and enhancement of
neighborhoods is paramount. These approaches ensure that all neighborhoods remain safe and vibrant.
Engaging residents, developers and community stakeholders provides opportunities to achieve this goal,
while maintaining each neighborhood's distinct character.
•
Quality of Life
Chandler's commitment to high standards has spanned generations of city leadership and resulted in
the safe and beautiful community residents and businesses enjoy today. Our innovative practices
maximize cost savings for taxpayers while enhancing the quality of city services. Our unparalleled quality
of life includes a focus on arts, culture, learning and recreation. High-quality developments, parks and
amenities shape the character of our neighborhoods and commercial centers.
•
Sustainability and Technology
Chandler's high-tech industries, businesses and talented workforce drive the local economy. We
recognize the importance of infrastructure, water and streamlined city services that support key
industries engaged in the development of current and future technologies. The pursuit of sustainable
and technological infrastructure and services advance our ability to meet the unique needs of the
community and equip our empowered, talented workforce to serve.
2024-2025 Accomplishments
Under the guidance and leadership of the Mayor and Council, along with the expertise and dedication of city
management and staff, a number of accomplishments were achieved this last fiscal year. Listed below are just a
few of those accomplishments:
•
Maintained AAA General Obligation (GO) bond and Excise Tax Revenue Obligation credit ratings with
stable outlooks from all three rating agencies, making Chandler one of a select few municipalities in the
U.S. with this distinction;
•
Completed financial analysis and education regarding bond authorization need and timing throughout
the 31 member Resident Bond Exploratory Committee process to eventually bring a recommendation to
City Council that does not increase the city property tax rate supporting payment of bonded debt and
positions the city to continue its Capital Improvement Program (CIP);
•
Completed financial analysis to pay off the Public Safety Personnel Retirement System (PSPRS)
Unfunded Liability in July 2023, to reduce the ongoing contribution rates expense of approximately $8 -
$10 million annually, to help offset the impact of the state reduction of $11 million in ongoing
Residential Rental Transaction Privilege Tax (TPT) revenue in January 2025;
•
Successfully negotiated a solar contract that identifies nearly 9 megawatts of power generation across
23 city facilities, generating ongoing electrical savings;
•
Developed an Opioids Response Strategic Plan to mitigate the impact of opioids in the community;
3
•
Implemented the Join Team Chandler marketing campaign with the Human Resources Department to
promote career opportunities to prospective applicants through targeted communications and a
recruitment website. Three videos received nominations in the commercial category at the 2024 Rocky
Mountain Emmy Awards;
•
Conducted the Primary Election in July 2024 and the General Election in November 2024 and served as a
ballot drop-off location for all registered voters;
•
Improved customer service by implementing an online reservation service for the public to make
appointments with court clerks;
•
Law worked with the Development Services Department to recover past due annual license fees in the
amount of $636 thousand to preserve the parties’ long standing business relationship and
telecommunication services to Chandler residents;
•
Honored as the winner of the 2024 ICMA Local Government Excellence Award in Community Equity and
Inclusion for the city’s Diversity, Equity & Inclusion Strategic Plan, recognizing innovation in balancing
social, economic, environmental, and cultural needs in communities of 50 thousand or more;
•
Partnered with IDIA, Chandler Unified School District (CUSD), and AZCEND to launch the HIVE at San
Marcos, a technology resource center providing digital training and support to community hubs, senior
centers, affordable housing, and shelters;
•
Reintroduced the Chandler Non-Profit Coalition (CNPC) with For Our City – Chandler, serving as a central
hub for local non-profits to connect, collaborate, and strengthen collective impact;
•
Economic Development assisted business location and expansion projects included D.R. Horton, The
Mahoney Group, 3D Barrier Bags, Turbo Resources, and VIAVI Solutions;
•
Economic Development helped reactivate vacant retail spaces by supporting the recruitment and
opening of new businesses including Round1 Bowling & Arcade, Seafood City Supermarket, Carolina’s
Mexican Food, and Mox Boarding House;
•
Collaborated with CUSD and Chandler-Gilbert Community College (CGCC) to launch the City of Chandler
Scholarship, which provided financial assistance to 25 CGCC students pursuing 79 targeted STEM
Advanced Manufacturing programs;
•
Continued the operation of Chandler Flex. Over 100,000 rides have been provided to more than 3,700
unique riders since the programs’s inception in July 2022. Added 4.5 square miles to the service area in
July 2024;
•
Secured $8.6 million in federal grants for use on five transportation projects (Lindsay Road, Roadway
Safety Action Plan, Riggs Road/Paseo Trail Crossing Study, Street Sweeper, and Chandler Flex);
•
Completed two sessions of internship partnership with Chandler-Gilbert Community College for a total
of 6 since the program began. The Spring 2024 program had 16 new interns, nine returning, for a total
of 25 interns in 19 departments/divisions. The Fall 2024 program had 14 new interns, 10 returning, for a
total of 24 interns in 20 departments/divisions;
•
Implemented a new integrated benefits and wellness platform for employee and retirees which allowed
access to their benefits information 24/7 from any computer or mobile phone;
•
Completed the Chandler Center for the Arts (CCA) Needs Assessment in partnership with the Chandler
Cultural Foundation and the Chandler Unified School District;
•
Celebrated the CCAs 35th Anniversary and served over 166,000 people continuing its commitment to
engaging and inclusive programming with over 50 nonprofit and cultural institutions utilizing CCA for
their activities;
•
Hosted 85 free activities at the Vision Gallery, wrapped seven utility boxes, and brought additional public
art projects to the community including City Hall Banners, a Wall Street mural, and art at the
Tumbleweed Recreation Center;
4
•
Contracted with an outside consultant to produce a 5-year strategic plan for the newly reorganized
Museum Division;
•
Completed the Mesquite Groves Aquatic Center renovation that included water slides, decking, diving
boards, and turf; completed the public input process and developed a new master plan for the Mesquite
Groves Park site; and completed the Brooks Crossing Park renovation;
•
Completed the Parks’ Urban Forestry Inventory, partially funded by the Arizona Department of Forestry
and Fire Management with a $40 thousand Community Challenge Grant;
•
Received a $50 thousand grant from the Gila River Indian Community for the Chandler Nature Center to
renovate the community garden;
•
Updated the Downtown Region Area Plan, South Arizona Avenue Area Plan;
•
Issued over 3,300 building permits for over $1.1 billion in construction valuation in calendar year 2024
and conducted 11,397 building inspections;
•
Implemented Chandler’s fiber infrastructure project, Council approved five new telecommunications
licenses to accelerate the delivery of fast broadband to residents and businesses, and four Fiber to the
Home (FTTH) service providers were included;
•
Government Experience (GovEx) ranked the City of Chandler as #2 nationally, the GovEx Award
encompasses the full experience of government across multiple channels (web, mobile, etc.) and digital
services. Jurisdictions receiving an Overall Experience Award demonstrate a focus on optimizing the
constituent and customer experience across disparate channels;
•
2024 Digital Cities Award ranked the City of Chandler #2 nationally. The Digital Cities award recognizes
cities utilizing technology to enhance digital services and transparency, strengthen cybersecurity, digital
privacy rights, digital equity, and finding innovative ways to support solutions for social challenges facing
cities today;
•
Implemented cybersecurity and threat detection solutions as well as multi-factor authentication (MFA)
for privileged access users that are responsible for maintaining and administering system access to
customers. MFA prevents unauthorized access;
•
Achieved the second highest program in the state of Arizona to have the most enrolled participants with
the City of Chandler Family Self Sufficiency program totaling 120 families. A total of 15 Chandler families
graduated from the program in both Public Housing and Housing Choice Voucher (HCV) in the fiscal
year;
•
Celebrated the 14th year of For Our City Day with a kickoff event in Pamela Park and over 200
volunteers performed several alley cleanup projects;
•
Continued to promote a Book Rich Environment in the Public Housing Authority (PHA) with the Public
Housing Youth Program that served approximately 500 youth and provided over 1,000 books;
•
Implemented the Chandler Public Housing Authority’s first phase of the plan to develop existing public
housing units with the approval of the Villas on McQueen, a new 157-unit affordable housing project;
•
Administered $1.4 million of Community Development Block Grant (CDBG) funds effectively and
provided public services, neighborhood revitalization, and housing activities for households with low
and moderate income;
•
Allocated $2.1 million of General Funds to support 46 nonprofit organizations that provided human
services to residents;
•
The Fire Department responded to over 29,000 emergency incidents;
5
•
Redesigned the operational deployment of personnel utilizing additional rovers, early-hire firefighters,
and a peaktime unit which resulted in increased availability of vacation time for firefighters while
decreasing overtime spending by $850 thousand from FY 2023-24;
•
Established a new critical response unit, CR2840, that is focused on addressing opioid-related incidents,
education, prevention and establishing connections to care. This program was developed utilizing One
Arizona Agreement funds;
•
Completed 163 miles of asphalt repaving, surface seal, and slurry treatments. Along with completion of
ADA upgrades to 450 sidewalk/driveway locations and 791 corner ramps;
•
Treated and delivered 21.4 billion gallons (BG) of potable drinking water & treated 9.7BG of wastewater,
8.4BG were reused by customers for irrigation and cooling;
•
Provided 839 residential water audits and high-water use checks, 87 landscape consultations and 168
smart controller conversions for a total water savings of over 57.4M gallons;
•
Implemented the new Water Efficiency Technology Rebate Program, completed nine evaluations,
responded to 21 inquiries and assisted four customers to gain approvals; estimated that 100K gallons
saved per year;
•
Awarded $1.1M in Environmental Protection Agency (EPA) and Water Infrastructure Finance Authority
(WIFA) grant funding for Automatic Meter Infrastructure (AMI) program;
•
Developed and submitted service line inventory and notified approximately 89K residents to meet Lead
and Copper Rule Revision requirements;
•
Responded to 19 inquires regarding the Large Landscape Grass Removal Rebate Program, assisted 11
customers to gain approvals, resulting in over 230,000 sq ft of grass removed, estimating 11 million
gallons of water saved per year;
•
While Part I crime increased negligibly in 2024 to 15.8 per 1,000 population, crime remains at historic
lows, making 2024 the second safest year in Chandler’s 30-year history of tracking crime statistics;
•
The Forensic Services Section received the prestigious Foresight Maximus Award for the 7th consecutive
year in recognition of superior laboratory performance;
•
The Real Time Operations Center (ROC) became fully operational, leveraging technology to serve as a
force multiplier to solve and reduce crime as well as enhance public and officer safety. The ROC received
the Team of the Year award from the National Real Time Crime Center Association to acknowledge
regionalization efforts focused on technology and information sharing across jurisdictional boundaries;
•
Volunteers in Policing satisfied $413 thousand in warrants, staffed the Senior Lock Box program by
completing 132 new installations and 404 courtesy checks, and added 8 new therapy dogs to the Paws
for Police program.
FINANCIAL INFORMATION
Internal Control Structure
Management of the city is responsible for establishing and maintaining an internal control structure designed to
ensure that the assets of the city are protected from loss, theft, or misuse and to ensure that adequate
accounting data are compiled to allow for the preparation of financial statements in conformity with GAAP. The
internal control structure is designed to provide reasonable, but not absolute, assurance that these objectives
are met. The concept of reasonable assurance recognizes that: (1) the cost of a control should not exceed the
benefits likely to be derived and (2) the valuation of costs and benefits requires estimates and judgments by
management.
6
As a recipient of federal, state, and county financial assistance, the city is also responsible for ensuring that an
adequate internal control structure is in place to ensure and document compliance with applicable laws and
regulations related to these programs. This internal control structure is subject to periodic evaluation by
management and various other city staff, as needed.
Single Audit
As a part of the city’s single audit, described earlier, tests were made of the city’s internal control structure and
of its compliance with applicable laws and regulations, including those related to federal financial assistance
programs.
Budgetary Controls
The city maintains budgetary controls as an integral part of its overall system of internal controls. The objective
of these budgetary controls is to ensure compliance with legal provisions embodied in the annual appropriated
budget approved by the City Council. Activities of the general fund, special revenue funds, capital projects funds,
enterprise funds, internal service funds, and fiduciary funds are included in the annual appropriated budget.
The level of budgetary control (i.e., the level at which expenditures cannot legally exceed the appropriated
amount) is the total budget, as adopted (FY 2024-25, $1.63 billion). The city additionally exercises management
control and oversight of the budget at the department level within each fund and maintains an encumbrance
accounting system as another method of maintaining budgetary control. Encumbered amounts do not lapse at
fiscal year-end and appropriation equal to the amount of year-end encumbrances are added to the current year
budget in each cost center. Expenditures against those encumbrances are charged to the current year
appropriation.
As demonstrated by the statements and schedules included in the financial section of this report, the city
continues to meet its responsibility for sound financial management.
OTHER INFORMATION
Independent Audit
City Charter and State statute require an annual audit by a firm of independent certified public accountants and
the firm of Heinfeld, Meech & Co., P.C. has been selected by the city to uphold this requirement. In addition to
meeting the requirements set forth in City Charter and State statutes, the audit was also designed to meet the
requirements of the federal Single Audit Act of 1996 and the related U.S. Office of Management and Budget’s
Uniform Guidance. Auditing standards generally accepted in the United States of America and the standards set
forth in the General Accountability Office’s Government Auditing Standards were used by the auditors in
conducting the engagement. The auditor’s report on the basic financial statements is included in the financial
section of this report. The auditor’s reports on internal controls and compliance with applicable laws and
regulations can be found in a separately issued single audit report.
Financial Awards
The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of
Achievement for Excellence in Financial Reporting to the City of Chandler, Arizona, for its Annual Comprehensive
Financial Report for the year ended June 30, 2024, marking the forty-third consecutive year the city has received
the GFOA Certificate of Achievement. The Certificate of Achievement is a prestigious national award recognizing
conformance with the highest standards for preparation of a municipal government financial report.
In order to be awarded a Certificate of Achievement, a governmental unit must publish an easily readable and
efficiently organized Annual Comprehensive Financial Report whose contents conform to program standards.
Such reports must satisfy both GAAP and applicable legal requirements.
Additionally, the city was also awarded the Distinguished Budget Presentation Award for the fiscal year
beginning July 1, 2024 from the GFOA, marking the thirty-seventh consecutive year of receiving this award. The
award reflects the commitment of staff to meeting the highest principles of governmental budgeting.
7
In order to be awarded a Distinguished Budget Presentation Award, the city had to satisfy nationally recognized
guidelines for effective budget presentation. The guidelines are designed to assess how well an entity’s budget
serves as a policy document, financial plan, operational guide, and communications device. The city’s budget
presentation receives an outstanding rating in many of the areas rated.
The Certificate of Achievement and Distinguished Budget Presentation Awards are valid for a period of one year
only.
We believe our current Certificate of Achievement report continues to conform to the Certificate of Achievement
program requirements and we are submitting it to the GFOA.
Acknowledgments
I wish to express my sincere thanks to the entire staff of the Accounting Division; without whose assistance this
report could not have been prepared. Special acknowledgment is made for the work of Kristi Smith,
Management Services Director; Julie Goucher, Accounting Senior Manager; Tracy Schmidt, Accounting
Supervisor; Lina Alam, Accounting Supervisor; Debbie Motta, Senior Accountant; Joanne Chang, Senior
Accountant; and Sara Story, Senior Accountant. Finally, I wish to thank the Mayor and Council, City Manager,
Assistant City Manager, Deputy City Manager, Directors, and city staff for their continued support in promoting
sound financial policies and internal controls.
Respectfully submitted,
Dawn Lang
Deputy City Manager | CFO
8
Kevin Hartke, Mayor
Christine Ellis, Vice Mayor
Angel Encinas, Councilmember
OD Harris, Councilmember
Jennifer Hawkins, Councilmember
Matt Orlando, Councilmember
Jane Poston, Councilmember
Executive Staff
Joshua H. Wright, City Manager
Tadd Wille, Assistant City Manager
Dawn Lang, Deputy City Manager I CFO
Andy Bass, Deputy City Manager
Department Heads and Directors
Kelly Schwab, City Attorney
Dana DeLong, City Clerk
Alicia M. Skupin, Presiding City Magistrate
Matt Burdick, Communications and Public Affairs Director
John Sefton, Community Services Director
Kim Moyers, Cultural Development Director
Kevin Snyder, Development Services Director
Micah Miranda, Economic Development Director
Tom Dwiggins, Fire Chief
Rae Lynn Nielsen, Human Resources Director
Sandip Dholakia, Chief Information Officer
Dawn Lang, Deputy City Manager I CFO as Management Services Director
Leah Powell, Neighborhood Resources Director
Bryan Chapman, Chief of Police
John Knudson, Public Works & Utilities Director
CITY OF CHANDLER, ARIZONA
ELECTED AND APPOINTED OFFICIALS
JUNE 30, 2025
9
10
11
12
A clear vision, strong reserves,
prudent spending and sound
financial management have
enabled Chandler to deliver a
balanced budget and maintain
AAA bond ratings from all three
rating agencies.
2
• Independent Auditor's Report
• Management's Discussion and Analysis (MD&A)
• Basic Financial Statements
• Required Supplementary Information
• Other Financial Statements
Financial Section
Financial Section
Financial Section Tab
13
Independent Auditor’s Report
Honorable Mayor and Members of the City Council
City of Chandler, Arizona
Report on Audit of Financial Statements
Opinions
We have audited the accompanying financial statements of the governmental activities, the business‐type
activities, each major fund, and the aggregate discretely presented component units and remaining fund
information of the City of Chandler, Arizona (the “City”), as of and for the year ended June 30, 2025, and the
related notes to the financial statements, which collectively comprise the City’s basic financial statements as
listed in the table of contents.
In our opinion, the financial statements referred to above present fairly, in all material respects, the respective
financial position of the governmental activities, the business‐type activities, each major fund, and the
aggregate discretely presented component units and remaining fund information of the City of Chandler,
Arizona, as of June 30, 2025, and the respective changes in financial position and, where applicable, cash flows
thereof for the year then ended in accordance with accounting principles generally accepted in the United
States of America.
Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States of
America and the standards applicable to financial audits contained in Government Auditing Standards, issued
by the Comptroller General of the United States. Our responsibilities under those standards are further
described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report. We are
required to be independent of City of Chandler, Arizona, and to meet our other ethical responsibilities in
accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence
we have obtained is sufficient and appropriate to provide a basis for our audit opinions.
Change in Accounting Principle
As described in Note 1 to the financial statements, the City implemented the provisions of GASB Statement
No. 101, Compensated Absences, for the year ended June 30, 2025. Our opinion is not modified with respect
to this matter.
Responsibilities of Management for the Financial Statements
Management is responsible for the preparation and fair presentation of the financial statements in accordance
with accounting principles generally accepted in the United States of America, and for the design,
implementation, and maintenance of internal control relevant to the preparation and fair presentation of
financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, management is required to evaluate whether there are conditions or
events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going
concern for one year beyond the financial statement date, including any currently known information that may
raise substantial doubt shortly thereafter.
Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free
from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our
opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not
a guarantee that an audit conducted in accordance with generally accepted auditing standards and
Government Auditing Standards will always detect a material misstatement when it exists. The risk of not
detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud
may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate,
they would influence the judgment made by a reasonable user based on the financial statements. In performing
an audit in accordance with generally accepted auditing standards and Government Auditing Standards, we:
Exercise professional judgment and maintain professional skepticism throughout the audit.
Identify and assess the risks of material misstatement of the financial statements, whether due to fraud
or error, and design and perform audit procedures responsive to those risks. Such procedures include
examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.
Obtain an understanding of internal control relevant to the audit in order to design audit procedures
that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the City’s internal control. Accordingly, no such opinion is expressed.
Evaluate the appropriateness of accounting policies used and the reasonableness of significant
accounting estimates made by management, as well as evaluate the overall presentation of the
financial statements.
Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that
raise substantial doubt about the City’s ability to continue as a going concern for a reasonable period
of time.
We are required to communicate with those charged with governance regarding, among other matters, the
planned scope and timing of the audit, significant audit findings, and certain internal control related matters that
we identified during the audit.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the Management’s
Discussion and Analysis, budgetary comparison information, net pension liability information, and other
postemployment benefit plan information, as listed in the table of contents, be presented to supplement the
basic financial statements. Such information is the responsibility of management and, although not a part of
the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it
to be an essential part of financial reporting for placing the basic financial statements in an appropriate
operational, economic, or historical context. We have applied certain limited procedures to the required
supplementary information in accordance with auditing standards generally accepted in the United States of
America, which consisted of inquiries of management about the methods of preparing the information and
comparing the information for consistency with management’s responses to our inquiries, the basic financial
statements, and other knowledge we obtained during our audit of the basic financial statements. We do not
express an opinion or provide any assurance on the information because the limited procedures do not provide
us with sufficient evidence to express an opinion or provide any assurance.
Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively
comprise the City’s basic financial statements. The Other Financial Statements, as listed in the table of
contents, are presented for purposes of additional analysis and are not a required part of the basic financial
statements. Such information is the responsibility of management and was derived from and relates directly
to the underlying accounting and other records used to prepare the basic financial statements. Such
information has been subjected to the auditing procedures applied in the audit of the basic financial
statements and certain additional procedures, including comparing and reconciling such information directly
to the underlying accounting and other records used to prepare the basic financial statements or to the basic
financial statements themselves, and other additional procedures in accordance with auditing standards
generally accepted in the United States of America. In our opinion, the Other Financial Statements, are fairly
stated in all material respects, in relation to the basic financial statements as a whole.
Other Information
Management is responsible for the other information included in the annual report. The other information
comprises the Introductory Section and Statistical Section but does not include the basic financial statements
and our auditor’s report thereon. Our opinions on the basic financial statements do not cover the other
information and we do not express an opinion or any form of assurance thereon.
In connection with our audit of the basic financial statements, our responsibility is to read the other
information and consider whether a material inconsistency exists between the other information and the basic
financial statements, or the other information otherwise appears to be materially misstated. If, based on other
work performed, we conclude that an uncorrected material misstatement of the other information exists, we
are required to describe it in our report.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated November 25, 2025,
on our consideration of City of Chandler, Arizona’s internal control over financial reporting and on our tests of
its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters.
The purpose of that report is solely to describe the scope of our testing of internal control over financial
reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of
internal control over financial reporting or on compliance. That report is an integral part of an audit performed
in accordance with Government Auditing Standards in considering City of Chandler, Arizona’s internal control
over financial reporting and compliance.
Heinfeld, Meech & Co., P.C.
Scottsdale, Arizona
November 25, 2025
16
MANAGEMENT’S DISCUSSION AND ANALYSIS (MD&A)
(Required Supplementary Information)
17
18
As management of the City of Chandler (city), we offer readers of the city’s financial statements this narrative
overview and analysis of the financial activities of the city for the fiscal year ended June 30, 2025. We encourage
readers to consider the information presented here in conjunction with additional information that we have
furnished in our letter of transmittal beginning on page one and the accompanying notes to the financial
statements.
FINANCIAL HIGHLIGHTS
The financial statements, which follow the Management’s Discussion and Analysis, provide these significant, key
financial highlights for fiscal year 2025 as follows:
•
The assets and deferred outflows of resources of the city exceeded its liabilities and deferred inflows of
resources at the close of the most recent fiscal year by $1.9 billion (net position). This represents an
increase of $112.8 million from the prior year. Factors that have contributed to the increase in net
position are decreases in pension liabilities and increases in capital assets, primarily capital projects
placed in service. Of this amount, $514.6 million (unrestricted net position) may be used to meet the
city’s obligations to residents and creditors. However, $55.5 million is invested in a joint venture with the
Town of Gilbert for the San Tan Vista Water Treatment Plant, which decreased $4.6 million from the prior
year, and is not available for obligations.
•
At June 30, 2025, the city’s governmental funds reported combined ending fund balances of $543.1
million; a decrease of $8.7 million in comparison with the prior year primarily due to a decrease in other
financing sources resulting from bond issuance and associated premiums received in the prior fiscal year
as well as a reduction of the additional pension contributions that were made above and beyond the
actuarially determined contribution.
•
Approximately 61.3 percent of the total combined fund balance amount, $332.8 million, is available for
spending at the city’s discretion (assigned or unassigned).
•
At June 30, 2025, total fund balance for the general fund was $361.4 million which represents an increase
of $42.4 million from the prior year, primarily due to one-time pension payments made in the prior fiscal
year.
•
General revenues from governmental activities accounted for $429.5 million, or 79.3 percent of all
revenues from governmental activities as opposed to 80.5 percent in the prior year. Program specific
revenues in the form of charges for services and grants and contributions accounted for $112.0 million
or 20.7 percent of total governmental activity revenues, as opposed to 19.5 percent in the prior year. The
city had $179.7 million of program revenues ($183.9 million in the prior year) and $23.1 million in general
revenues and transfers ($15.0 million in the prior year) related to business-type activities.
•
At June 30, 2025, the city’s proprietary funds reported combined total net position of $837.0 million as
compared to $819.2 million in the prior year; an increase for the current year of $17.8 million. The
increase in net position is primarily driven by revenue from grants and entitlements as well as
miscellaneous revenue including settlement payments and housing portability rents. This results in a
total unrestricted net position of $206.8 million, of which $125.7 million of the unrestricted net position
is in the water fund.
OVERVIEW OF FINANCIAL STATEMENTS
This discussion and analysis is intended to serve as an introduction to the city’s basic financial statements. The
city’s basic financial statements comprise three components: 1) government-wide financial statements, 2) fund
financial statements, and 3) notes to the financial statements. This report also contains other supplementary
information in addition to the basic financial statements themselves.
Government-wide financial statements. The government-wide financial statements are designed to provide
readers with a broad overview of the city’s finances in a manner similar to a private-sector business.
CITY OF CHANDLER, ARIZONA
Management’s Discussion and Analysis (MD&A)
Year Ended June 30, 2025
19
The Statement of Net Position presents information on all of the city’s assets, liabilities, and deferred inflows/
outflows of resources with the difference reported as net position. Net position is categorized as capital assets
less related debt, restricted by an outside third party and unrestricted. Over time, increases or decreases in net
position may serve as a useful indicator of whether the financial position of the city is improving or deteriorating.
The Statement of Activities presents information showing how the city’s net position changed during the most
recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the
change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this
statement for some items that will result in cash flows in future fiscal periods (e.g., uncollected taxes and earned
but unused compensated absences).
In the government-wide financial statements the city’s activities are presented in the following categories:
•
Governmental activities - Most of the city’s basic services are included here, such as general
government, public safety, transportation and development and community services. Sales taxes, state
shared revenues and charges for services finance most of these activities.
•
Business-type activities - The services provided by the city included here are water, wastewater,
reclaimed water, solid waste, airport services and housing services. The services are financed through
user fees and charges.
•
Component units - The discretely presented component units are the Chandler Industrial Development
Authority, the Chandler Cultural Foundation, the Chandler Museum Foundation, and the Chandler
Housing and Community Services Corporation.
Fund financial statements. A fund is a grouping of related accounts that is used to maintain control over
resources that have been segregated for specific activities or objectives. The city uses fund accounting to ensure
and demonstrate compliance with finance-related legal requirements. All of the funds of the city can be divided
into two categories: governmental funds and proprietary funds.
Governmental funds. Governmental funds are used to account for essentially the same functions reported
as governmental activities in the government-wide financial statements. However, unlike the government-
wide financial statements, governmental fund financial statements focus on near-term inflows of spendable
resources, as well as on balances of spendable resources available at the end of the fiscal year. Such
information may be useful in evaluating the city’s near-term financing requirements.
Because the focus of governmental funds is narrower than that of the government-wide financial
statements, it is useful to compare the information presented for governmental funds with similar
information presented for governmental activities in the government-wide financial statements. By doing so,
readers may better understand the long-term impact of the city’s near-term financing decision. Both the
governmental fund balance sheet and the governmental fund statement of revenues, expenditures and
changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds
and governmental activities.
The city maintains 19 individual governmental funds. Information is presented separately in the
governmental fund balance sheet and in the governmental fund statement of revenues, expenditures and
changes in fund balances for the general fund and general obligation bonds debt service fund, which are
considered to be major funds. Data from the other 17 governmental funds are combined into a single,
aggregated presentation. Individual fund data for each of these non-major governmental funds is provided
in the form of combining statements and schedules in the financial section of this report.
CITY OF CHANDLER, ARIZONA
Management’s Discussion and Analysis (MD&A)
Year Ended June 30, 2025
20
The city adopts an annual appropriated budget for the general, special revenue, general obligation debt
service, capital projects and proprietary funds. Budgetary comparison statements have been provided in the
required supplementary information for the general fund and in the other financial statements for the
general obligation bonds debt service fund and non-major governmental funds to demonstrate compliance
with the budget.
Proprietary funds. The city maintains two different types of proprietary funds. Enterprise funds are used to
report the same functions presented as business-type activities in the government-wide financial
statements. The city uses enterprise funds to account for its water, wastewater, reclaimed water, solid waste,
airport and housing services. Internal service funds are an accounting device used to accumulate and
allocate costs internally among the city’s various functions. The city uses an internal service fund to account
for its self-insurance funds. Because self-insurance funds are funded predominantly by governmental
functions rather than business-type functions, it has been included within governmental activities in the
government-wide financial statements. Proprietary funds provide the same type of information as the
government-wide financial statements, only in more detail.
The proprietary fund financial statements provide separate information for the water and wastewater funds,
which are considered to be major funds of the city. Data from the other three enterprise funds are
combined into a single, aggregated presentation. Individual fund data for each of the non-major enterprise
funds are provided in the form of combining statements in the financial section of this report.
Notes to the financial statements. The notes provide additional information that is essential to a full
understanding of the data provided in the government-wide and fund financial statements. The notes to the
financial statements can be found immediately following the basic financial statements in this report.
Other information. In addition to the basic financial statements and accompanying notes, this report also
presents certain required supplementary information concerning the city’s budget process. The city adopts an
annual budget for all governmental and enterprise funds. A budgetary comparison schedule has been provided
for the General Fund as required supplementary information. The required supplementary information also
includes schedules of net pension liabilities, pension contributions and other post employment benefit (OPEB)
liabilities.
GOVERNMENT-WIDE FINANCIAL ANALYSIS
Net position may serve over time as a useful indicator of a government’s financial position. In the case of the city,
assets and deferred outflows of resources exceeded liabilities and deferred inflows of resources by $1.93 billion
as of June 30, 2025. This reflects continued strong operations in governmental activities, increased revenues
from services provided and grants awarded, and careful monitoring of expenses in governmental activities.
A significant portion of the city’s net position (62.9 percent) reflects its investment in capital assets (e.g., land and
improvements, buildings and improvements, improvements other than buildings, vehicles, machinery and
equipment, water rights and construction in progress), less any related debt used to acquire those assets that is
still outstanding. The city uses these capital assets to provide services to its residents; consequently, these assets
are not available for future spending. Although the city’s investment in its capital assets is reported net of related
debt, it should be noted that the resources needed to repay this debt must be provided from other sources,
since the capital assets themselves cannot be used to liquidate these liabilities.
An additional portion of the city’s net position (10.4 percent) represents resources that are subject to external
restrictions on how they may be used. The remaining balance of unrestricted net position (26.7 percent) includes
$55.5 million which is invested in a joint venture with the Town of Gilbert for the San Tan Vista Water Treatment
Plant that may not be used to meet the city’s obligations to residents and creditors.
CITY OF CHANDLER, ARIZONA
Management’s Discussion and Analysis (MD&A)
Year Ended June 30, 2025
21
At the end of the current fiscal year, the city is able to report positive balances in all three categories of net
position: net investment in capital assets, restricted and unrestricted. The same situation held true for the prior
fiscal year.
The following table presents a condensed statement of the city's net position for the fiscal years ended June 30,
2025 and 2024.
Governmental
Business-type
Total
Activities
Activities
(Primary Govt.)
2025
2024
2025
2024
2025
2024
Current assets
$ 691,782,180
$ 698,413,961
$ 231,514,368
$ 292,975,380
$ 923,296,548
$ 991,389,341
Capital assets, net
819,970,008
763,039,535
911,410,621
836,174,421
1,731,380,629
1,599,213,956
Long-term assets
15,687,470
15,088,409
66,254,755
64,163,639
81,942,225
79,252,048
Total assets
1,527,439,658
1,476,541,905
1,209,179,744
1,193,313,440
2,736,619,402
2,669,855,345
Total deferred outflows of resources
115,127,055
170,056,278
10,409,021
10,114,194
125,536,076
180,170,472
Total assets and deferred
outflows of resources
1,642,566,713
1,646,598,183
1,219,588,765
1,203,427,634
2,862,155,478
2,850,025,817
Current liabilities
104,775,375
101,765,657
65,281,641
45,875,498
170,057,016
147,641,155
Long-term liabilities
413,523,349
526,235,366
310,913,974
331,653,355
724,437,323
857,888,721
Total liabilities
518,298,724
628,001,023
376,195,615
377,528,853
894,494,339
1,005,529,876
Total deferred inflows of resources
34,894,451
24,198,429
6,343,855
6,690,360
41,238,306
30,888,789
Total liabilities and deferred
inflows of resources
553,193,175
652,199,452
382,539,470
384,219,213
935,732,645
1,036,418,665
Net position:
Net investment in capital assets
$ 614,855,681
572,110,660
597,070,834
526,875,770
1,211,926,515
1,098,986,430
Restricted
166,710,948
251,642,729
33,158,230
28,190,997
199,869,178
279,833,726
Unrestricted
307,806,909
170,645,342
206,820,231
264,141,654
514,627,140
434,786,996
Total net position
$ 1,089,373,538
$ 994,398,731
$ 837,049,295
$ 819,208,421
$ 1,926,422,833 $ 1,813,607,152
$ (Millions)
Governmental Activities
Business-type Activities
$0
$500
$1,000
$1,500
$2,000
$2,500
$3,000
$3,500
Total assets and deferred
outflows of resources
Total liabilities and deferred
inflows of resources
Total net position
CITY OF CHANDLER, ARIZONA
Management’s Discussion and Analysis (MD&A)
Year Ended June 30, 2025
22
Changes in net position. The city’s total revenues for the fiscal year ended June 30, 2025 were $743.3 million.
The total cost of all programs and services was $630.5 million, which results in an increase in net position of
$112.8 million. The following table presents a summary of the changes in net position for the fiscal years ended
June 30, 2025 and 2024.
Governmental
Business-type
Total
Activities
Activities
(Primary Govt.)
2025
2024
2025
2024
2025
2024
Revenues:
Program revenues
Charges for services
$
90,162,665
$ 76,561,603
$ 144,765,920
$ 143,099,880
$ 234,928,585
$ 219,661,483
Operating grants and contributions
4,600,440
13,304,466
17,882,587
12,460,952
22,483,027
25,765,418
Capital grants and contributions
17,284,480
16,299,587
17,074,215
28,318,640
34,358,695
44,618,227
General revenues
Property taxes
44,321,587
42,508,632
—
—
44,321,587
42,508,632
Sales taxes
207,605,337
208,766,241
21,236
23,363
207,626,573
208,789,604
Highway user taxes
21,880,284
21,430,580
—
—
21,880,284
21,430,580
Franchise Fees
3,245,696
3,691,281
—
—
3,245,696
3,691,281
State shared revenues
117,646,741
133,384,945
—
—
117,646,741
133,384,945
Investment income
32,989,892
25,508,647
12,606,364
10,854,527
45,596,256
36,363,174
Miscellaneous
1,809,952
2,109,152
9,433,541
3,033,563
11,243,493
5,142,715
Gain on sale of capital assets
—
—
4,050
4,401
4,050
4,401
Total revenues
541,547,074
543,565,134
201,787,913
197,795,326
743,334,987
741,360,460
Expenses:
General government
158,427,128
258,864,611
—
—
158,427,128
258,864,611
Public safety
158,185,614
85,894,534
—
—
158,185,614
85,894,534
Transportation and development
74,087,692
59,823,718
—
—
74,087,692
59,823,718
Community services
48,423,518
43,606,131
—
—
48,423,518
43,606,131
Interest and fiscal charges
6,382,171
5,935,673
—
—
6,382,171
5,935,673
Water
—
—
63,443,736
69,667,817
63,443,736
69,667,817
Wastewater
—
—
78,455,540
70,135,806
78,455,540
70,135,806
Solid waste
—
—
19,642,278
19,412,684
19,642,278
19,412,684
Airport
—
—
2,285,462
2,873,143
2,285,462
2,873,143
Chandler housing authority
—
—
21,186,167
14,220,801
21,186,167
14,220,801
Total expenses
445,506,123
454,124,667
185,013,183
176,310,251
630,519,306
630,434,918
Excess (deficiency) before transfers
96,040,951
89,440,467
16,774,730
21,485,075
112,815,681
110,925,542
Transfers in (out)
(1,066,144)
(1,069,860)
1,066,144
1,069,860
—
—
Change in net position
94,974,807
88,370,607
17,840,874
22,554,935
112,815,681
110,925,542
Beginning net position
994,398,731
906,028,124
819,208,421
796,653,486
1,813,607,152
1,702,681,610
Ending net position
$ 1,089,373,538
$ 994,398,731
$ 837,049,295
$ 819,208,421
$ 1,926,422,833
$ 1,813,607,152
CITY OF CHANDLER, ARIZONA
Management’s Discussion and Analysis (MD&A)
Year Ended June 30, 2025
23
Revenue Sources - Fiscal Year 2025
31.62%
3.02% 4.62% 5.96%
27.93%
2.94%
0.44%
15.83%
6.13%
1.51%
Charges for services
Operating grants and contributions
Capital grants and contributions
Property taxes
Sales taxes
Highway user fees
Franchise fees
State shared revenues
Investment income
Miscellaneous
Percent Of Total Revenue
Functional Expenses - Fiscal Year 2025
25.13%25.09%
11.75%
7.68%
1.01%
10.06%
12.44%
3.12%
0.36%
3.36%
General government
Public safety
Transportation and development
Community services
Interest and fiscal charges
Water
Wastewater
Solid waste
Airport
Housing authority
Percent of Total Expenses
CITY OF CHANDLER, ARIZONA
Management’s Discussion and Analysis (MD&A)
Year Ended June 30, 2025
24
As evidenced in the previous graph, the largest financing source for the city is charges for services at 31.62
percent, associated with the user fees (i.e., water, wastewater) and general government charges for services
such as permits and recreation/facility uses. Sales taxes and state shared revenues (i.e., sales tax, urban revenue
sharing) also comprise a significant portion of the city’s revenues at 27.93 percent and 15.83 percent,
respectively, of the total revenues with capital grants and contributions for an additional 4.62 percent of the
city’s total revenues.
The city as a whole uses the largest amount of resources for general government functions (i.e. cultural
development, information technology, neighborhood resources, law, etc.) and public safety functions at 25.13
percent and 25.09 percent respectively. The next largest users of resources are wastewater at 12.44 percent,
transportation and development at 11.75 percent, and water at 10.06 percent of the city’s total expenses.
Governmental activities. The increase in governmental net position totaled $95.0 million for the year ended
June 30, 2025 compared with an increase of $88.4 million in the prior year. Contributing factors include a
decrease in governmental activities expenditures primarily due to a one-time $73 million pension payment
made in the prior fiscal year (vs. a one-time payment of $7 million in fiscal year 2025). Transportation and
Development expenditures increased primarily due to increases in professional services. Overall, governmental
activity expenditures had a decrease of $8.6 million over the prior year.
Revenue from charges for services increased for general government due primarily to increases in self insurance
premiums. Transportation and development charges for services increased primarily due to permit revenues
relating to the Intel expansion. The increase in transportation and development capital grants was primarily due
to grants for fiber upgrades and transportation projects. Public Safety operating grants decreased primarily due
to American Rescue and Recovery Act funds received in the prior year. State shared revenues decreased from
the prior year as a result of the adoption of a flat income tax rate in fiscal year 2025. The overall change in
governmental activity revenues was a decrease of $2.0 million from the prior year.
Business-type activities. The increase in business-type net position totaled $17.8 million for the year ended
June 30, 2025 compared with an increase of $22.6 million in the prior year. The net increase was due to a variety
of factors including increases in interest revenue, housing assistance payments and housing grant funds
received and distributed. The wastewater fund received less in developer contributions associated with
reclaimed water projects and the water fund miscellaneous revenue increased primarily due to a PFAS (per- and
polyfluoroalkyl substances) lawsuit settlement.
FINANCIAL ANALYSIS OF THE CITY’S FUNDS
As noted earlier, the city uses fund accounting to ensure and demonstrate compliance with finance-related legal
requirements.
Governmental funds. The focus of the city’s governmental funds is to provide information on near-term
inflows, outflows and balances of spendable resources. Such information is useful in assessing the city’s
financing requirements. Fund balances are reported on a hierarchy of five classifications based on spending
constraints in order to provide better consistency and clarification. These classifications include nonspendable,
restricted, committed, assigned and unassigned. The spendable balances are the restricted, committed,
assigned and unassigned fund balances. Additional information on fund balances and their classifications can be
found in Note 9 of the financial statements.
The financial performance of the city as a whole is reflected in its governmental funds. As the city completed the
year, its governmental funds reported a combined fund balance of $543.1 million, a decrease of $8.7 million in
comparison with the prior year increase of $66.6 million. Approximately $332.8 million (61.3 percent) of this
amount is combined assigned and unassigned balances, all which may be spent at the city’s discretion. The total
compared to the prior years’ assigned and unassigned balances of $299.1 million represents an increase of
$33.7 million.
CITY OF CHANDLER, ARIZONA
Management’s Discussion and Analysis (MD&A)
Year Ended June 30, 2025
25
The remainder of the fund balance comprising of nonspendable and restricted balances amounts to $210.3
million (38.7 percent of the total fund balance). The nonspendable balance consists of inventories. The restricted
balance is constrained for specific purposes imposed by external parties or enabling legislation. The total
compared to the prior years’ nonspendable and restricted balances of $252.7 million represents a decrease of
$42.4 million.
The general fund is the chief operating fund of the city. At the end of the current fiscal year, assigned and
unassigned fund balance of the general fund was $348.7 million, while total fund balance reached $361.4
million. As a measure of the general fund’s liquidity, it may be useful to compare both assigned and unassigned
fund balance and total fund balance to total fund expenditures. Assigned and unassigned fund balance
represents 1.15 coverage of total annual general fund expenditures. The amount of fund balance is well above
the city’s contingency reserve financial policy, allowing the funding of other reserves (e.g., economic
development, capital projects and compensated absences). The city’s general fund balance increased by $42.4
million during the current fiscal year. While revenues remained relatively stable over the prior year,
expenditures were reduced due to a one-time pension payment of $73 million in the prior fiscal year (vs. a $7
million payment in fiscal year 2025). In addition, capital outlay and subscription based information technology
arrangement (SBITA) expenditures were reduced over the prior year.
The general obligation bonds debt service fund accounts for the accumulation of resources for and payments of
general obligation bonded debt. The fund balance restricted for general obligation debt service payments
increased by $0.2 million during the current fiscal year. The increase is due to debt service payments made
during the fiscal year based on the defined debt service payment schedules having increased over prior fiscal
years and being offset by interfund transfers of $10.5 million due to system development fees debt repayment.
Proprietary funds. The city’s proprietary funds, which include enterprise and internal service funds, provide the
same type of information found in the government-wide financial statements, but in more detail. Net position
for the enterprise funds and the internal service funds at the end of the fiscal year amounted to $837.0 million
and $48.8 million, respectively, compared to $819.2 million and $44.3 million in the prior fiscal year. As stated
above, various factors contributed to the increase, some of which include increases in capital projects in process
and placed in service, miscellaneous income from PFAS (per- and polyfluoroalkyl substances) lawsuit settlement,
and Chandler Housing Authority grant income and expense.
The enterprise funds net position is 24.7 percent unrestricted compared to 32.2 percent in the prior fiscal year.
Unrestricted net position of the water fund at the end of the year amounted to $125.7 million, and those for the
wastewater fund amounted to $51.2 million, compared to $150.8 million and $87.3 million in the prior fiscal
year. The balances will support planned utility infrastructure and the related debt service.
BUDGETARY HIGHLIGHTS
For the 2024-25 budget year, the city continued to engage in fiscally responsible budgeting practices, adhered to
financial policies, and used conservative budgeting while resetting anticipated revenues based on a growing
economic trend. With a continued conservative mindset, the City Council adopted a balanced budget for fiscal
year 2024-25 that allowed for needed improved service levels in many areas adding spending for a variety of
operating and capital needs. Overall planned capital expenditures increased as additional projects were added
to address our aging infrastructure, and one-time revenues were applied to select capital projects. The city’s
major sources of General Fund revenues include Local Sales Tax (Transaction Privilege Tax-TPT), State Shared
TPT Revenue Urban Revenue Sharing (State Shared Income Tax).
The city projects current General Fund revenues and determines what portion can be sustained as ongoing
revenues to support ongoing operating expenditures. Ongoing current revenues are not expected to exceed
81% of total estimated revenues for fiscal year 2024-25, with 19% treated as one-time revenues. Each revenue is
reviewed for trends, development spikes, new economic additions, and economic events with temporary
impacts to determine ongoing levels each year that are available to support ongoing expenditures.
CITY OF CHANDLER, ARIZONA
Management’s Discussion and Analysis (MD&A)
Year Ended June 30, 2025
26
The fiscal year 2024-25 adopted budget contains a Budget Stabilization Reserve of $10 million which provides an
opportunity to balance the budget for no more than three consecutive years, until permanent ongoing
reductions can be implemented, should State legislation, unexpected decreases in property values, or other
economic fluctuations cause operating revenues to decrease more than anticipated.
CAPITAL ASSETS AND DEBT ADMINISTRATION
Capital assets. As of June 30, 2025, the city had invested $1.2 billion in capital assets net of related debt,
including buildings, system improvements, vehicles, machinery and equipment, SBITA's, water rights and
infrastructure assets. Total depreciation/amortization expense for the year was $102.3 million.
During fiscal year 2024-25, the city achieved significant progress in advancing numerous capital improvement
projects, completing several key initiatives and concluding several noteworthy capital improvement projects.
Among the accomplishments are the completion of the Pecos SWTP Water Quality Lab and Admin Building HVAC
renovation and filter improvements ($11.5 million), Sewer Pipeline Assessment and Rehabilitation ($23.2 million),
and Wall Street Improvements to Frye Rd ($3.1 million).
Numerous capital projects were also in process during the year. Some of the larger projects and their estimated
total project costs include the Water Conveyance and Interconnect Facility ($79.7 million), Water Treatment
Plant/Production Facility Improvements ($63.8 million), Water Reclamation Facility Improvements ($41.6 million),
Tumbleweed Park Pickleball and Softball Complex ($28.9 million), Tumbleweed Park Multi-Generation Facility
Expansion ($18.2 million), and Information Technology System Enhancements ($21.2 million).
The following table presents capital asset balances net of accumulated depreciation and amortization for the
fiscal years, ended June 30, 2025 and 2024:
Governmental
Business-type
Total
Activities
Activities
(Primary Govt.)
2025
2024
2025
2024
2025
2024
Land
$ 102,250,357
$ 101,748,183
$
58,361,283
$
57,328,151
$ 160,611,640
$ 159,076,334
Land improvements
—
—
389,674
454,766
389,674
454,766
Infrastructure
298,783,965
319,459,158
—
—
298,783,965
319,459,158
System improvements
—
—
632,016,704
538,467,152
632,016,704
538,467,152
Buildings and improvements
186,498,589
193,287,979
6,185,196
6,275,727
192,683,785
199,563,706
Subscription based IT arrangements
3,053,632
5,064,643
—
—
3,053,632
5,064,643
Vehicles, machinery
and equipment
26,241,004
26,934,819
5,011,304
3,925,327
31,252,308
30,860,146
Water rights
—
—
40,931,537
41,360,140
40,931,537
41,360,140
Construction in progress
203,142,461
116,544,753
168,514,923
188,363,158
371,657,384
304,907,911
Total
$ 819,970,008
$ 763,039,535
$ 911,410,621
$ 836,174,421
$ 1,731,380,629 $ 1,599,213,956
Additional information on the city’s capital assets can be found in Note 4 of the financial statements.
Long-term debt. At the end of the current fiscal year, the city had total bonded debt outstanding of $496.8
million in long-term debt outstanding with $63.0 million due within one year. The following table presents a
summary of the city’s outstanding long-term obligations for the fiscal years ended June 30, 2025 and 2024.
CITY OF CHANDLER, ARIZONA
Management’s Discussion and Analysis (MD&A)
Year Ended June 30, 2025
27
Governmental
Business-type
Total
Activities
Activities
(Primary Govt.)
2025
2024
2025
2024
2025
2024
General obligation bonds
$ 215,907,223
$ 249,009,159
$
39,937,777
$
49,480,841
$ 255,845,000
$ 298,490,000
Excise tax revenue obligations
—
—
240,995,000
250,405,000
240,995,000
250,405,000
Issuance premiums
19,013,255
22,348,687
17,285,366
19,965,864
36,298,621
42,314,551
Total bonds & obligations payable
$ 234,920,478
$ 271,357,846
$ 298,218,143
$ 319,851,705
$ 533,138,621
$ 591,209,551
Claims payable
23,025,295
23,813,895
—
—
23,025,295
23,813,895
Arbitrage liability
219,247
189,980
—
—
219,247
189,980
Subscription based IT arrangements
2,754,337
4,579,664
—
—
2,754,337
4,579,664
Landfill closure/post closure
—
—
4,340,000
4,340,000
4,340,000
4,340,000
Compensated absences
21,110,526
15,362,525
2,397,481
1,555,830
23,508,007
16,918,355
Notes payable
—
—
5,000,000
—
5,000,000
—
Net pension liability
125,434,295
199,488,891
20,675,371
19,344,718
146,109,666
218,833,609
Post-employment benefits
72,122,804
68,499,616
9,032,477
8,553,638
81,155,281
77,053,254
Total long-term liabilities
$ 479,586,982
$ 583,292,417
$ 339,663,472
$ 353,645,891
$ 819,250,454
$ 936,938,308
The city's total long-term liabilities decreased by $117.7 million during the current fiscal year. The city reported a
decrease in pension liability of $72.7 million, primarily due to lump sum payments made to the Public Safety
Personnel Retirement System (PSPRS) in fiscal year 2022-23 ($50 million), 2023-24 ($73 million), and 2024-25 ($7
million), an increase in post-employment benefits of $4.1 million and a net decrease of $52.1 million in bonds
due to the impact of regularly scheduled payments being made as planned.
State statutes currently limit the amount of general obligation debt a city may issue to 20 percent of its total
assessed valuation for water, sewer, artificial lighting, open space, parks, public safety and emergency services,
streets, transportation and recreational facilities. The current debt limitation for the city is $1.4 billion. The city
has $263.8 million of outstanding general obligation debt for these purposes.
State statutes also currently limit the amount of general obligation debt a city may issue to 6 percent of its total
assessed valuation for all other purposes. The current debt limitation for the city is $418.1 million. The city has
$8.0 million of outstanding general obligation debt for this purpose.
As of year-end, the city’s current bond ratings on general obligation bonds and Excise tax revenue obligation
bonds (ETROs) were Aaa from Moody’s Investor Services, AAA from Standard & Poor’s, and AAA from Fitch
Ratings.
Additional information on the city’s long-term debt can be found in Note 5 of the financial statements.
CITY OF CHANDLER, ARIZONA
Management’s Discussion and Analysis (MD&A)
Year Ended June 30, 2025
28
ECONOMIC FACTORS AND NEXT YEAR’S BUDGET
Adopting a balanced budget for the next fiscal year (2025-26) required the combined efforts of residents, the city
Council, Executive Leadership team, and staff members throughout the organization. As the financial impacts
anticipated during the fiscal year 2024-25 budget year were stronger than anticipated, additional thought and
measured change was incorporated into the fiscal year 2025-26 budget.
The budget contains a variety of increases to revenues and expenditures where needed, which helps to mitigate
inflationary pressures being felt across all departments and allows for a continued focus on providing high
service levels and quality infrastructure in a cost-effective way. This year again included diligent monitoring of
legislative bills that could impact our ongoing revenues, and we included the full impact of the legislative
removal of our ability to tax residential rental transactions which began in January 2025. Also, a focused review
of expenditure impacts that could potentially cause higher costs if not contained was accomplished. This
included the Public Safety Personnel Retirement System (PSPRS) rates and any remaining unfunded liability,
retirement vacancies which have been more difficult to fill in some cases, additional staff or contract needs,
workers’ compensation self-insurance claims, fleet and equipment sustainability, aging infrastructure, and
addressing various capital needs under a higher construction cost environment. Even though general economic
conditions are anticipated to continue at their current levels, the city is still conservative in its approach and
continues to look for efficiencies to manage expenditure growth.
The budget decreased from $1.6291 billion in fiscal year 2024-25 to $1.6289 billion (a very small decrease of .01
percent) in fiscal year 2025-26. While there is a small reduction of appropriation, the total department operating
budget is increasing from $527 million to $563 million (6.8%). The total new capital appropriation is increasing
from $239 million to $278 million. There is also an additional $568 million in capital carryforward (decreasing
from $637 million in the prior year) for projects started but not yet complete as the city continues a healthy
capital improvement program to ensure existing infrastructure is well maintained and the needs of residents
can be met. With an increase of 0.4 percent in Limited Property Values (including 1.3 percent of that from new
growth and a decrease of 0.9 percent in appreciation), the City Council chose to reduce the primary property tax
rate from $0.2126 to $0.2118 and keep the secondary property tax rate at $0.87 per $100 of assessed valuation.
This planned rate reduction will help minimize the impact of higher values on property owner’s tax payment.
The fiscal year 2025-26 Budget includes the sale of bonds ($314.7 million), as part of a robust Capital
Improvement Program to enhance aging infrastructure and provide quality amenities for residents. Additionally,
the City Council maintained the General Fund operating contingency at 15 percent of General Fund ongoing
operating revenues to provide a contingency for emergencies or to support new opportunities such as
unanticipated grants or development agreements. Chandler continues maintaining and adhering to strong
financial policies, has updated the Pension Funding Policy to ensure an ongoing focus on managing pension
costs, and continues to plan for additional funding the ensure the maintenance of the "paid-off" status of the
pension liability. Chandler remains in a solid financial position to continue its tradition of strong fiscal
management as reflected by its AAA GO and ETRO bond ratings with all three rating agencies which were last
reaffirmed in November of 2024.
CONTACTING THE CITY’S FINANCE OFFICE
This financial report is designed to provide our residents, taxpayers, customers, and investors and creditors with
a general overview of the city’s finances and to demonstrate the city’s accountability for the money it receives. If
you have questions about this report or need additional information, contact the Management Services
Department, City of Chandler, P.O. Box 4008, MS 609, Chandler, AZ 85244-4008 or by calling (480) 782-2250.
CITY OF CHANDLER, ARIZONA
Management’s Discussion and Analysis (MD&A)
Year Ended June 30, 2025
29
30
BASIC FINANCIAL STATEMENTS
31
City of Chandler
Statement of Net Position
June 30, 2025
Component Units
Total
Chandler Industrial
Chandler
Chandler
Chandler
Housing &
Community
Services Corp.
Governmental
Business-Type
Primary
Development
Cultural
Museum
Activities
Activities
Government
Authority
Foundation
Foundation
ASSETS
Current assets:
Equity in pooled cash and investments
$
647,732,951
$ 198,042,746
$ 845,775,697
$
—
$
—
$
— $
—
Cash and investments
—
—
—
1,521,143
7,289,288
72,557
351,080
Accounts receivable
2,930,009
19,035,029
21,965,038
—
29,203
1,751
—
Privilege license tax receivable
18,700,572
—
18,700,572
—
—
—
—
Property taxes receivable
489,681
—
489,681
—
—
—
—
Due from other governments
10,799,881
8,979,557
19,779,438
—
—
—
—
Inventories
1,028,477
68,953
1,097,430
—
—
10,678
—
Prepaid items
—
799,122
799,122
—
68,705
—
—
Accrued interest receivable
3,845,434
1,155,143
5,000,577
—
71,123
—
—
Opioid settlement receivable
629,553
—
629,553
—
—
—
—
Notes receivable
328,476
—
328,476
—
—
—
—
Other receivables
5,297,146
3,433,818
8,730,964
—
—
—
—
Total current assets
691,782,180
231,514,368
923,296,548
1,521,143
7,458,319
84,986
351,080
Long-term assets:
Cash and investments - restricted
—
—
—
—
1,434,255
291,123
—
Leases receivable
6,222,908
3,768,438
9,991,346
—
—
—
—
Due from other governments
322,438
—
322,438
—
—
—
—
Opioid settlement receivable
4,607,330
—
4,607,330
—
—
—
—
Other receivables
—
1,817,158
1,817,158
—
—
—
—
Notes receivable
—
5,154,750
5,154,750
—
—
—
—
Investment in joint venture
—
55,514,409
55,514,409
—
—
—
—
OPEB asset
4,534,794
—
4,534,794
—
—
—
—
Capital assets:
Non-depreciable
305,392,818
226,876,206
532,269,024
—
—
—
—
Depreciable/amortizable, net
514,577,190
684,534,415
1,199,111,605
—
—
—
—
Total capital assets
819,970,008
911,410,621
1,731,380,629
—
—
—
—
Total long-term assets
835,657,478
977,665,376
1,813,322,854
—
1,434,255
291,123
—
Total assets
1,527,439,658
1,209,179,744
2,736,619,402
1,521,143
8,892,574
376,109
351,080
DEFERRED OUTFLOWS OF RESOURCES
Deferred outflows of OPEB and pension plan
items
112,366,385
6,490,203
118,856,588
—
—
—
—
Deferred amounts on refundings
2,760,670
3,918,818
6,679,488
—
—
—
—
Total deferred outflows of resources
115,127,055
10,409,021
125,536,076
—
—
—
—
32
LIABILITIES
Current liabilities:
Accounts payable
19,374,562
25,546,696
44,921,258
3,000
121,526
1,547
65,110
Accrued payroll
9,642,304
1,044,552
10,686,856
—
—
—
—
Due to other governments
18,034
—
18,034
—
—
—
—
Trust liabilities and deposits
4,117,156
4,262,320
8,379,476
—
—
—
—
Accrued interest
4,326,287
4,741,410
9,067,697
—
—
—
—
Unearned revenue
1,233,399
—
1,233,399
—
950,859
995
—
Customer advances
—
937,165
937,165
—
—
—
—
Subscription based IT arrangement liability
2,390,301
—
2,390,301
—
—
—
—
Compensated absences payable
7,031,432
969,577
8,001,009
—
—
—
—
Bonds payable
41,310,455
27,685,475
68,995,930
—
—
—
—
Landfill closure and postclosure liability
—
94,446
94,446
—
—
—
—
Claims and judgements payable
15,331,445
—
15,331,445
—
—
—
—
Total current liabilities
104,775,375
65,281,641
170,057,016
3,000
1,072,385
2,542
65,110
Long-term liabilities:
Arbitrage liability
219,247
—
219,247
—
—
—
—
Subscription based IT arrangement liability
364,036
—
364,036
—
—
—
Compensated absences payable
14,079,094
1,427,904
15,506,998
—
—
—
—
Notes payable
—
5,000,000
5,000,000
—
—
—
—
Bonds payable
193,610,023
270,532,668
464,142,691
—
—
—
—
Net pension liability
125,434,295
20,675,371
146,109,666
—
—
—
—
OPEB liability
72,122,804
9,032,477
81,155,281
—
—
—
—
Landfill closure and postclosure liability
—
4,245,554
4,245,554
—
—
—
—
Claims and judgements payable
7,693,850
—
7,693,850
—
—
—
—
Total long-term liabilities
413,523,349
310,913,974
724,437,323
—
—
—
—
Total liabilities
518,298,724
376,195,615
894,494,339
3,000
1,072,385
2,542
65,110
DEFERRED INFLOWS OF RESOURCES
Deferred inflows of OPEB and pension plan items
29,394,069
2,725,998
32,120,067
—
—
—
—
Leases and Public-Private Partnerships (PPPs)
5,500,382
3,617,857
9,118,239
—
—
—
—
Total deferred inflows of resources
34,894,451
6,343,855
41,238,306
—
—
—
—
NET POSITION
Net investment in capital assets
614,855,681
597,070,834
1,211,926,515
—
—
—
—
Restricted for:
Transportation and development
104,117,122
—
104,117,122
—
—
—
—
Capital improvements
23,014,987
—
23,014,987
—
—
—
—
Community services
25,776,355
—
25,776,355
—
—
—
—
Community development
347,108
—
347,108
—
—
—
—
Debt service
1,858,177
33,158,230
35,016,407
—
—
—
—
OPEB benefits
4,534,794
—
4,534,794
—
—
—
—
Legal restrictions
7,062,405
—
7,062,405
—
1,434,255
291,123
285,970
Total restricted
166,710,948
33,158,230
199,869,178
—
1,434,255
291,123
285,970
Unrestricted
307,806,909
206,820,231
514,627,140
1,518,143
6,385,934
82,444
—
Total net position
$ 1,089,373,538 $ 837,049,295
$ 1,926,422,833 $ 1,518,143
$
7,820,189
$
373,567
$ 285,970
See accompanying Notes to the Financial Statements.
33
City of Chandler
Statement of Activities
For the year ended June 30, 2025
Program Revenues
Operating
Capital
Charges for
Grants and
Grants and
Function/Programs
Expenses
Services
Contributions
Contributions
Total
Primary government:
Governmental activities:
General government
$ 158,427,128
$ 47,456,873
$
2,438,981
$
2,875,166
$ 52,771,020
Public safety
158,185,614
5,905,414
731,311
—
6,636,725
Transportation and development
74,087,692
19,901,334
1,031,447
14,409,314
35,342,095
Community services
48,423,518
16,899,044
398,701
—
17,297,745
Interest on long-term debt
6,382,171
—
—
—
—
Total governmental activities
445,506,123
90,162,665
4,600,440
17,284,480
112,047,585
Business-type activities:
Water
63,443,736
59,970,840
—
2,780,957
62,751,797
Wastewater
78,455,540
61,594,681
—
14,293,258
75,887,939
Solid waste
19,642,278
19,942,908
—
—
19,942,908
Airport
2,285,462
1,214,124
—
—
1,214,124
Chandler housing authority
21,186,167
2,043,367
17,882,587
—
19,925,954
Total business-type activities
185,013,183
144,765,920
17,882,587
17,074,215
179,722,722
Total primary government
$ 630,519,306
$ 234,928,585 $ 22,483,027
$ 34,358,695
$ 291,770,307
Component units
Chandler Industrial Development
Authority
$
16,708
$
145,457
$
—
$
—
$
145,457
Chandler Cultural Foundation
3,237,512
2,943,510
565,541
—
3,509,051
Chandler Museum Foundation
32,076
26,810
3,571
—
30,381
Chandler Housing & Community
Services Corporation
65,110
351,080
—
—
351,080
Total component units
$
3,351,406
$ 3,466,857
$
569,112
$
—
$ 4,035,969
General revenues and transfers:
General revenues:
Property taxes, levied for general purposes
Sales taxes
Highway user taxes
Franchise fees
State shared revenues (unrestricted)
Investment income
Miscellaneous
Gain on sale of capital assets
Transfers
Total general revenues and transfers
Change in net position
Net position - beginning of year
Net position - end of year
See accompanying Notes to the Financial Statements.
34
Net (Expense) Revenue
and Changes in Net Position
Primary Government
Component Units
Chandler Industrial
Chandler
Chandler
Chandler Housing
Governmental
Business-Type
Development
Cultural
Museum
& Community
Activities
Activities
Total
Authority
Foundation
Foundation
Services Corp.
$ (105,656,108) $
—
$ (105,656,108) $
—
$
—
$
— $
—
(151,548,889)
—
(151,548,889)
—
—
—
—
(38,745,597)
—
(38,745,597)
—
—
—
—
(31,125,773)
—
(31,125,773)
—
—
—
—
(6,382,171)
—
(6,382,171)
—
—
—
—
(333,458,538)
—
(333,458,538)
—
—
—
—
—
(691,939)
(691,939)
—
—
—
—
—
(2,567,601)
(2,567,601)
—
—
—
—
—
300,630
300,630
—
—
—
—
—
(1,071,338)
(1,071,338)
—
—
—
—
—
(1,260,213)
(1,260,213)
—
—
—
—
—
(5,290,461)
(5,290,461)
—
—
—
—
(333,458,538)
(5,290,461) (338,748,999)
—
—
—
—
—
—
—
—
128,749
—
—
—
—
—
—
—
271,539
—
—
—
—
—
—
—
(1,695)
—
—
—
—
—
—
—
285,970
—
—
—
128,749
271,539
(1,695)
285,970
44,321,587
—
44,321,587
—
—
—
—
207,605,337
21,236
207,626,573
—
—
—
—
21,880,284
—
21,880,284
—
—
—
—
3,245,696
—
3,245,696
—
—
—
—
117,646,741
—
117,646,741
—
—
—
—
32,989,892
12,606,364
45,596,256
68,521
390,696
10,512
—
1,809,952
9,433,541
11,243,493
—
—
—
—
—
4,050
4,050
—
(3,401)
—
—
(1,066,144)
1,066,144
—
—
—
—
—
428,433,345
23,131,335
451,564,680
68,521
387,295
10,512
—
94,974,807
17,840,874
112,815,681
197,270
658,834
8,817
285,970
994,398,731
819,208,421
1,813,607,152
1,320,873
7,161,355
364,750
—
$ 1,089,373,538
$ 837,049,295
$ 1,926,422,833 $
1,518,143
$
7,820,189
$
373,567 $
285,970
35
City of Chandler
Balance Sheet -
Governmental Funds
June 30, 2025
Major Funds
General
Obligation
Other
Bonds
Governmental
General
Debt Service
Funds
Total
ASSETS
Equity in pooled cash and investments
$
330,791,535
$
44,004,516
$
200,894,876
$ 575,690,927
Accounts receivable
2,930,009
—
—
2,930,009
Privilege license tax receivable
18,700,572
—
—
18,700,572
Property taxes receivable
103,822
385,859
—
489,681
Advances to other funds
5,140,833
—
—
5,140,833
Due from other funds
11,149,478
—
—
11,149,478
Due from other governments
2,737,963
—
8,384,356
11,122,319
Inventories
1,028,477
—
—
1,028,477
Accrued interest receivable
2,087,286
86,362
1,004,876
3,178,524
Opioid settlement receivable
5,236,883
—
—
5,236,883
Notes receivable
—
—
328,476
328,476
Leases and PPP receivable
6,222,908
—
—
6,222,908
Other receivables
4,931,639
—
365,495
5,297,134
Total assets
$
391,061,405
$
44,476,737
$
210,978,079
$ 646,516,221
LIABILITIES, DEFERRED INFLOWS
OF RESOURCES AND FUND BALANCES
Liabilities:
Accounts payable
$
5,223,131
$
—
$
13,642,064
$ 18,865,195
Accrued payroll
9,112,399
—
409,036
9,521,435
Trust liabilities and deposits
3,822,723
—
294,433
4,117,156
Accrued interest
—
4,326,287
—
4,326,287
Due to other funds
—
—
11,149,478
11,149,478
Due to other governments
18,034
—
—
18,034
Advances from other funds
—
—
5,140,833
5,140,833
Unearned revenue
766,271
—
467,128
1,233,399
Arbitrage liability
—
219,247
—
219,247
Bonds payable
—
37,975,023
—
37,975,023
Total liabilities
18,942,558
42,520,557
31,102,972
92,566,087
Deferred inflows of resources
Unavailable revenues - property taxes
25,217
98,003
—
123,220
Leases and Public - Private Partnerships (PPPs)
5,500,382
—
—
5,500,382
Unavailable revenues - settlements
5,236,883
—
—
5,236,883
Unavailable revenues - grants
—
—
5,024
5,024
Total deferred inflows of resources
10,762,482
98,003
5,024
10,865,509
Fund balances:
Nonspendable
1,028,477
—
—
1,028,477
Restricted
11,592,841
1,858,177
195,788,947
209,239,965
Assigned
256,561,068
—
—
256,561,068
Unassigned
92,173,979
—
(15,918,864)
76,255,115
Total fund balances
361,356,365
1,858,177
179,870,083
543,084,625
Total liabilities, deferred inflows and fund balances
$
391,061,405
$
44,476,737
$
210,978,079
$ 646,516,221
See accompanying Notes to the Financial Statements.
36
City of Chandler
Reconciliation of the Governmental Funds Balance Sheet to the Government-wide
Statement of Net Position
June 30, 2025
Total Fund Balances - Total Governmental Funds
$ 543,084,625
Amounts reported for governmental activities in the Statement of Net Position were
reported differently because:
Capital assets used in governmental activities are not current financial resources.
Therefore, they were not reported in the Governmental Funds Balance Sheet.
Non-depreciable
$ 305,392,818
Depreciable/Amortizable buildings, vehicles, machinery and equipment and
infrastructure, net
514,577,190
Total capital assets
819,970,008
OPEB assets are not current financial resources and, therefore, are not reported in
the Governmental Funds Balance Sheet.
4,534,794
Certain revenues are not available to pay for current period expenditures and,
therefore, are unavailable in the funds.
5,365,127
Deferred amounts on refundings are not financial resources and, therefore, are not
reported in the funds.
2,760,670
Deferred outflows related to pensions and OPEB are not financial resources and,
therefore, are not reported in the funds.
112,366,385
Deferred inflows related to pensions and OPEB represent a future acquisition of
net position that is not reported in the funds.
(29,394,069)
The internal service fund is used by management to charge the costs of certain
activities to individual funds. The assets and liabilities of the internal service funds
are included in governmental activities in the Government-wide Statement of Net
Position.
48,799,192
Long-term liabilities are not due and payable in the current period. Therefore, they
were not reported in the Governmental Funds Balance Sheet. Except for the internal
service funds amounts of $23,279,518 which are included above, the long-term
liabilities were adjusted as follows:
Bonds payable
(196,945,455)
Net pension liability
(125,434,295)
OPEB liability
(72,122,804)
Subscription based IT arrangement liability
(2,754,337)
Compensated absences
(20,856,303)
Total long-term liabilities
(418,113,194)
Net Position of Governmental Activities
$ 1,089,373,538
See accompanying Notes to the Financial Statements.
37
City of Chandler
Statement of Revenues, Expenditures and Changes in Fund Balances -
Governmental Funds
For the year ended June 30, 2025
Major Funds
General
Other
Obligation Bonds
Governmental
General
Debt Service
Funds
Total
REVENUES:
Property taxes
$
8,760,591
$
35,818,046
$
—
$
44,578,637
Sales taxes
207,605,337
—
—
207,605,337
Highway user taxes
—
—
21,880,284
21,880,284
Franchise fees
3,245,696
—
—
3,245,696
State shared
117,646,741
—
—
117,646,741
Grants and entitlements
1,035,672
—
20,561,556
21,597,228
System development fees
—
—
3,216,916
3,216,916
Licenses and permits
13,820,770
—
—
13,820,770
Charges for services
26,084,156
—
4,193,287
30,277,443
Fines and forfeitures
4,180,603
—
702,455
4,883,058
Rentals
137,707
—
—
137,707
Interest revenue
17,741,005
829,979
10,461,895
29,032,879
Miscellaneous
468,904
—
481,461
950,365
Total revenues
400,727,182
36,648,025
61,497,854
498,873,061
EXPENDITURES:
Current:
General government
84,786,259
330,011
14,396,338
99,512,608
Public safety
153,635,194
—
1,719,351
155,354,545
Transportation and development
22,297,631
—
22,502,550
44,800,181
Community services
34,631,975
—
4,667,217
39,299,192
Capital outlay
4,368,323
—
102,230,974
106,599,297
Debt service:
Principal
2,333,443
37,975,023
—
40,308,466
Interest and fiscal charges
103,147
8,652,575
1,965
8,757,687
Total expenditures
302,155,972
46,957,609
145,518,395
494,631,976
Excess (deficiency) of revenues over
(under) expenditures
98,571,210
(10,309,584)
(84,020,541)
4,241,085
OTHER FINANCING SOURCES (USES):
Proceeds from disposal of capital assets
48,545
—
524,871
573,416
SBITA agreements
508,116
—
—
508,116
Transfers in
—
10,521,439
43,004,000
53,525,439
Transfers out
(56,721,776)
—
(10,807,323)
(67,529,099)
Total other financing sources (uses)
(56,165,115)
10,521,439
32,721,548
(12,922,128)
NET CHANGE IN FUND BALANCE
42,406,095
211,855
(51,298,993)
(8,681,043)
FUND BALANCES:
Beginning of year
318,950,270
1,646,322
231,169,076
551,765,668
End of year
$
361,356,365
$
1,858,177
$
179,870,083
$
543,084,625
See accompanying Notes to the Financial Statements.
38
City of Chandler
Reconciliation of the Governmental Funds Statement of Revenues, Expenditures and
Changes in Fund Balances to the Government-wide Statement of Activities
For the year ended June 30, 2025
Net Change in Fund Balances - Total Governmental Funds
$
(8,681,043)
Governmental activities in the Statement of Activities were reported differently
because:
Governmental funds report capital outlay as expenditures. However, in the
Government-wide Statement of Net Position and Statement of Activities, the cost
of those assets is allocated over their estimated useful lives as depreciation
expense. This is the amount of capital assets recorded in the current period.
110,532,616
Expenditures
related
to
the
implementation
of
subscription
based
IT
arrangements are recorded as an intangible right to use asset on the government
wide statements and amortized over the life of the contract.
17,715
Depreciation expense on capital assets is reported in the Government-wide
Statement of Net Position and Statement of Activities, but they do not require the
use of current financial resources. Therefore, depreciation expense is not
reported as an expenditure in the governmental funds.
(52,766,480)
Subscription Based IT arrangements amortization expenses do not require the
use of current financial resources and therefore are not reported as expenditures
in governmental funds
(2,536,851)
Some items reported in the governmental funds are sources and uses of current
financial resources and therefore are not reported as revenues or expenses in the
Statement of Activities. These items include:
Principal payments on debt
40,308,466
Pension related items
8,725,745
Other post employment benefits related items
(2,494,159)
46,540,052
Accrued interest payable, bond premium allocation and allocation of deferred
outflows from bond refundings related to long-term debt is recognized as an
expense in the Statement of Activities, however is not recognized in the
governmental funds because it is not payable from current financial resources.
2,375,516
Gain or loss on sale of capital assets in the statement of activities do not provide
current financial resources and therefore are not reported as revenues or
expenditures in the governmental funds.
(142,991)
Compensated absence expenses reported in the Statement of Activities do not
require the use of current financial resources and therefore are not reported as
expenditures in the governmental funds.
(5,631,211)
Certain revenues in the governmental funds that provide current financial
resources are not included in the Statement of Activities because they were
recognized in a prior period. However, other revenues that are unavailable in the
governmental funds because they do not provide current financial resources due to
unavailability are recognized in the Statement of Activities.
(510,747)
Capital assets contributed by developers to the city are not recorded in the
governmental funds as they do not provide current financial resources but are
recognized in the Statement of Activities as program revenues.
1,318,340
The internal service fund is used by management to charge the costs of certain
activities, such as insurance, to individual funds. The change in financial position
of the internal service fund is reported with governmental activities.
4,459,891
Change in Net Position of Governmental Activities
$
94,974,807
See accompanying Notes to the Financial Statements.
39
City of Chandler
Statement of Net Position -
Proprietary Funds
June 30, 2025
Other
Governmental
Major Funds
Proprietary
Activities: Internal
Water
Wastewater
Funds
Total
Service Fund
ASSETS
Current assets:
Equity in pooled cash and investments
$
91,284,238
$
68,444,320
$
38,314,188
$
198,042,746
$
72,042,024
Accounts receivable
8,786,085
7,537,124
2,711,820
19,035,029
—
Due from other governments
—
3,823,234
5,156,323
8,979,557
—
Inventories
53,764
—
15,189
68,953
—
Prepaid invoices
360,506
277,627
$
160,989
799,122
Accrued interest receivable
528,920
392,205
234,018
1,155,143
666,910
Other receivables
2,299,010
1,069,788
65,020
3,433,818
12
Total current assets
103,312,523
81,544,298
46,657,547
231,514,368
72,708,946
Long-term assets:
Notes receivable
—
—
5,154,750
5,154,750
—
Leases receivable
—
—
3,768,438
3,768,438
—
Investment in joint venture
55,514,409
—
—
55,514,409
—
Other receivables
1,817,158
—
—
1,817,158
—
Capital assets:
Non-depreciable
76,856,689
117,295,051
32,724,466
226,876,206
—
Depreciable/amortizable, net
204,977,051
456,728,125
22,829,239
684,534,415
—
Total capital assets
281,833,740
574,023,176
55,553,705
911,410,621
—
Total long-term assets
339,165,307
574,023,176
64,476,893
977,665,376
—
Total assets
442,477,830
655,567,474
111,134,440
1,209,179,744
72,708,946
DEFERRED OUTFLOWS OF RESOURCES
Deferred outflows of OPEB and pension plan items
3,064,716
2,055,249
1,370,238
6,490,203
—
Deferred amounts on refundings
1,880,982
2,037,836
—
3,918,818
—
Total deferred outflow of resources
4,945,698
4,093,085
1,370,238
10,409,021
—
40
LIABILITIES
Current liabilities:
Accounts payable
9,103,527
9,594,870
6,848,299
25,546,696
509,367
Accrued payroll
499,119
425,349
120,084
1,044,552
120,869
Trust liabilities and deposits
2,606,135
378,488
1,277,697
4,262,320
—
Accrued interest
2,304,672
2,436,738
—
4,741,410
—
Customer advances
294,528
378,772
263,865
937,165
—
Compensated absences payable
433,769
336,045
199,763
969,577
111,020
Bonds payable
12,295,267
15,390,208
—
27,685,475
—
Landfill closure and postclosure liability
—
—
94,446
94,446
—
Claims and judgements payable
—
—
—
—
15,331,445
Total current liabilities
27,537,017
28,940,470
8,804,154
65,281,641
16,072,701
Long-term liabilities:
Compensated absences payable
744,596
471,161
212,147
1,427,904
143,203
Notes payable
—
—
5,000,000
5,000,000
—
Bonds payable
122,536,114
147,996,554
—
270,532,668
—
Net pension liability
10,372,156
5,875,618
4,427,597
20,675,371
—
OPEB liability
4,112,715
3,236,702
1,683,060
9,032,477
—
Landfill closure and postclosure liability
—
—
4,245,554
4,245,554
—
Claims and judgements payable
—
—
—
—
7,693,850
Total long-term liabilities
137,765,581
157,580,035
15,568,358
310,913,974
7,837,053
Total liabilities
165,302,598
186,520,505
24,372,512
376,195,615
23,909,754
DEFERRED INFLOWS OF RESOURCES
Deferred inflows of OPEB and pension plan items
1,343,163
577,163
805,672
2,725,998
—
Deferred inflows of leases and PPP
—
—
3,617,857
3,617,857
Total deferred inflow of resources
1,343,163
577,163
4,423,529
6,343,855
—
NET POSITION
Net investment in capital assets
139,831,616
403,484,125
53,755,093
597,070,834
—
Restricted for:
Debt service
15,295,524
17,862,706
—
33,158,230
—
Unrestricted
125,650,627
51,216,060
29,953,544
206,820,231
48,799,192
Total net position
$
280,777,767
$
472,562,891
$
83,708,637
$
837,049,295
$
48,799,192
See accompanying Notes to the Financial Statements.
41
42
City of Chandler
Statement of Revenues, Expenses and Changes in Net Position -
Proprietary Funds
For the year ended June 30, 2025
Other
Governmental
Major Funds
Proprietary
Activities: Internal
Water
Wastewater
Funds
Total
Service Fund
OPERATING REVENUES:
Service fees
$ 59,970,840
$ 61,594,681
$ 21,222,377 $ 142,787,898 $
788,585
Grants and entitlements
—
—
17,882,587
17,882,587
—
Rentals
—
—
1,978,022
1,978,022
—
Sales taxes
—
—
21,236
21,236
—
Self insurance premiums
—
—
—
—
36,261,233
Miscellaneous
4,948,045
5,646
1,799,352
6,753,043
859,587
Total operating revenues
64,918,885
61,600,327
42,903,574
169,422,786
37,909,405
OPERATING EXPENSES:
General and administrative
3,548,439
3,814,443
1,403,006
8,765,888
—
Personnel services
13,266,628
10,657,971
5,657,278
29,581,877
2,765,200
Contractual services
15,077,796
5,755,596
15,603,271
36,436,663
10,147,482
Commodities
5,280,421
24,339,665
7,074,538
36,694,624
5,365,671
Claims expense
—
—
—
—
32,243,656
Housing assistance payments
—
—
11,275,880
11,275,880
—
Depreciation/amortization expense
16,481,069
28,430,950
2,067,934
46,979,953
—
Total operating expenses
53,654,353
72,998,625
43,081,907
169,734,885
50,522,009
OPERATING INCOME (LOSS)
11,264,532
(11,398,298)
(178,333)
(312,099)
(12,612,604)
NONOPERATING REVENUES (EXPENSES):
Interest revenue
5,768,928
4,668,025
2,169,411
12,606,364
3,957,021
Interest and fiscal charges
(5,162,715) (5,450,080)
—
(10,612,795)
—
Accretion of bond premiums
1,423,667
1,256,831
—
2,680,498
—
Gain (loss) on disposal of capital assets
(8,350)
(6,835)
(27,950)
(43,135)
—
Equity interest in joint venture
(4,618,318)
—
—
(4,618,318)
—
Total Nonoperating
revenues (expenses)
(2,596,788)
467,941
2,141,461
12,614
3,957,021
INCOME (LOSS) BEFORE CAPITAL
CONTRIBUTIONS AND TRANSFERS
8,667,744
(10,930,357)
1,963,128
(299,485)
(8,655,583)
CAPITAL CONTRIBUTIONS AND
TRANSFERS:
Capital contributions
2,780,957
14,293,258
177,958
17,252,173
—
Transfers in
1,388,800
1,354,699
2,361,086
5,104,585
13,145,082
Transfers out
(2,365,882) (1,698,161)
(152,356)
(4,216,399)
(29,608)
Total capital contributions and
transfers
1,803,875
13,949,796
2,386,688
18,140,359
13,115,474
CHANGE IN NET POSITION
10,471,619
3,019,439
4,349,816
17,840,874
4,459,891
NET POSITION:
Beginning of year
270,306,148
469,543,452
79,358,821
819,208,421
44,339,301
End of year
$ 280,777,767 $ 472,562,891 $ 83,708,637 $ 837,049,295 $
48,799,192
See accompanying Notes to the Financial Statements.
43
City of Chandler
Statement of Cash Flows -
Proprietary Funds
For the year ended June 30, 2025
Governmental
Other
Activities:
Major Funds
Proprietary
Internal
Water
Wastewater
Funds
Total
Service Fund
CASH FLOWS FROM OPERATING ACTIVITIES:
Cash received from customers
$
60,731,600
$
59,719,411
$
19,923,766
$ 140,374,777
$
848,779
Cash received from internal services provided
—
—
—
—
37,049,818
Cash received from grantors
—
—
12,743,647
12,743,647
—
Cash payments to suppliers
(18,970,413)
(31,606,960)
(24,786,754)
(75,364,127)
(48,236,198)
Cash payments to employees for services
(12,766,555)
(10,239,173)
(5,463,090)
(28,468,818)
(2,606,087)
Net cash provided (used) by operating activities
28,994,632
17,873,278
2,417,569
49,285,479
(12,943,688)
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES:
Transfers in
1,388,800
1,354,699
2,361,086
5,104,585
13,145,082
Transfers out
(2,365,882)
(1,698,161)
(152,356)
(4,216,399)
(29,608)
Net cash provided (used) by noncapital financing activities
(977,082)
(343,462)
2,208,730
888,186
13,115,474
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES:
Acquisition and construction of capital assets
(54,939,996)
(51,857,776)
(4,240,168) (111,037,940)
—
Principal paid on bond maturities
(8,229,417)
(9,587,521)
—
(17,816,938)
—
Interest paid on bonds
(5,456,522)
(5,716,134)
—
(11,172,656)
—
Cash received from capital contributions
2,366,246
3,664,579
—
6,030,825
—
Net cash provided (used) by capital and related financing activities
(66,259,689)
(63,496,852)
(4,240,168) (133,996,709)
—
CASH FLOWS FROM INVESTING ACTIVITIES:
Investment income
5,847,393
4,826,497
2,129,953
12,803,843
3,781,953
Net cash provided (used) by investing activities
5,847,393
4,826,497
2,129,953
12,803,843
3,781,953
Net increase (decrease) in cash and cash equivalents
(32,394,746)
(41,140,539)
2,516,084
(71,019,201)
3,953,739
CASH AND CASH EQUIVALENTS:
Beginning of year
123,678,984
109,584,859
35,798,104
269,061,947
68,088,285
End of year
$
91,284,238
$
68,444,320
$
38,314,188
$ 198,042,746
$
72,042,024
44
RECONCILIATION OF OPERATING INCOME (LOSS) TO NET
CASH PROVIDED (USED) BY OPERATING ACTIVITIES:
Operating income (loss)
$
11,264,532
$ (11,398,298) $
(178,333) $
(312,099) $
(12,612,604)
Adjustments to reconcile operating income (loss) to net
cash provided (used) by operating activities:
Depreciation and amortization
16,481,069
28,430,950
2,067,934
46,979,953
—
Changes in assets, liabilities and deferred items:
(Increase) decrease in receivables
(4,235,052)
307,111
(5,051,043)
(8,978,984)
598
(Increase) decrease in due from other governments
—
(1,968,663)
(5,138,940)
(7,107,603)
—
(Increase) decrease in inventories
(1,062)
—
(2,216)
(3,278)
—
(Increase) decrease in prepaid items
(172,089)
(136,346)
(66,802)
(375,237)
—
Increase (decrease) in long-term notes payable
5,109,394
2,439,090
5,638,959
13,187,443
309,211
Increase (decrease) in payables
—
—
5,000,000
5,000,000
—
Increase (decrease) in accrued payroll and compensated absences
412,238
369,654
157,546
939,438
159,113
Increase (decrease) in deposits
78,331
(294,716)
88,620
(127,765)
—
Increase (decrease) in claims payable
—
—
—
—
(788,600)
Increase (decrease) in unearned revenue
—
—
—
—
(11,406)
Increase (decrease) in customer advances
(30,564)
75,352
6,789
51,577
—
Increase (decrease) in net pension and OPEB items
(136,885)
(116,573)
(51,760)
(305,218)
—
Increase (decrease) in OPEB liability
224,720
165,717
88,402
478,839
—
Increase (decrease) in deferred inflow leases
—
—
(141,587)
(141,587)
—
Total adjustments
17,730,100
29,271,576
2,595,902
49,597,578
(331,084)
Net cash provided (used) by operating activities
$
28,994,632
$
17,873,278
$
2,417,569
$
49,285,479
$
(12,943,688)
NONCASH INVESTING, CAPITAL AND FINANCING ACTIVITIES:
Contributions of capital assets from developers
$
414,711
$
10,628,679
$
—
$
11,043,390
$
—
Contributions of capital assets from city government
—
—
177,958
177,958
—
Gain (loss) on disposal of capital assets
(8,350)
(6,835)
(27,950)
(43,135)
—
Accretion of bond premiums
1,423,667
1,256,831
—
2,680,498
—
See accompanying Notes to the Financial Statements.
45
The City of Chandler (city) was incorporated on February 17, 1920. On May 25, 1964, voters ratified a city charter
providing for a Council-Manager form of government. The government of the city is operated by authority of its
charter, as limited by the state legislature. A seven-member council, including a separately elected mayor,
governs the city.
The following notes to the financial statements are an integral part of the city’s financial statements.
NOTE 1 - Summary of Significant Accounting Policies
The accounting policies and procedures of the city conform to accounting principles generally accepted in
the United States of America (GAAP) as applied to governmental entities. The Governmental Accounting
Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting
and financial reporting principles.
The more significant of the city’s accounting policies are described below.
A.
Reporting Entity
As required by GAAP, these financial statements present the city and its component units, i.e., entities for
which the city is considered to be financially accountable and/or exercise significant influence over
operations. Blended component units, although legally separate entities, are a substantial part of the city’s
operations, and therefore data from these units are combined with data of the city. The city’s discretely
presented component units, on the other hand, are reported in a separate column in the basic financial
statements, to emphasize that they are legally separate from the city. The component units discussed below
are included in the city’s reporting entity because of the significance of their operational and/or financial
relationships with the city. Each component unit has a June 30 year-end.
1.
Blended Component Unit
The City of Chandler Municipal Property Corporation (Corporation) is a nonprofit corporation which
exists solely for the purpose of constructing or otherwise acquiring or equipping buildings, structures, or
improvements on land owned by the city for the benefit, common good, and general welfare of the city
and its residents. The Chandler City Council appoints the five members of the Board, who are
responsible for approving the Corporation’s bond sales. Additionally, all bond sales must be submitted
to and approved by the City Council. All financial activities are reported within the enterprise funds of
the city. Unaudited financial statements for the corporation are available from the City of Chandler,
Management Services Department, P.O. Box 4008, MS 702, Chandler, AZ 85244-4008.
2.
Discretely Presented Component Units
The component unit columns in the basic financial statements include the financial data of the Chandler
Industrial Development Authority (Authority), the Chandler Cultural Foundation (Cultural Foundation),
the Chandler Museum Foundation (Museum Foundation), and the Chandler Housing and Community
Services Corporation (CHCSC).
The Authority is responsible for the issuance of tax-exempt bonds for qualified projects approved by the
authority and the City Council. The authority has a seven-member board of directors appointed by the
City Council. The city is able to impose its will on the authority inasmuch as the City Council must vote to
ratify the actions of the authority with regard to the issuance of bonds.
The accounting records of the Authority are maintained by the city and are available from the City of
Chandler, Management Services Department, P.O. Box 4008, MS 702, Chandler, AZ 85244-4008.
CITY OF CHANDLER, ARIZONA
Notes to the Financial Statements
June 30, 2025
46
NOTE 1 - Summary of Significant Accounting Policies, continued
The Cultural Foundation oversees the operations of the Chandler Center for the Arts for the selection
and scheduling of performances, other facility use, and general policy setting activities. The city is able to
significantly influence its operations. Specifically, the Cultural Foundation’s budget is annually reviewed
and approved by the City Council and the Cultural Foundation’s nine-member Board is appointed by the
City Council. Financial statements for the Foundation are available from the Chandler Cultural
Foundation, 250 N Arizona Ave, Chandler, AZ 85225.
The Museum Foundation oversees the operations of the Chandler Museum for the selection and
scheduling of performances, other facility use, and general policy setting activities. The city is able to
significantly influence its operations. Specifically, the Museum Foundation’s budget is annually reviewed
and approved by the City Council and the Museum Foundation’s nine-member Board is appointed by
the City Council. Financial statements for the Museum Foundation are available from the Chandler
Museum Foundation, 300 S Chandler Village Dr., Chandler, AZ 85226.
The CHCSC was created to promote the availability and expansion of affordable housing in the city by
the provision of support to the City of Chandler Neighborhood Resources Department Housing and
Redevelopment Division. The Board of Directors currently consists of city directors and executive staff
but is not appointed by City Council, nor does City Council approve the annual budget. The accounting
records of the CHCSC are maintained by the city and are available from the City of Chandler,
Management Services Department, P.O. Box 4008, MS 702, Chandler, AZ 85244-4008.
B.
Government-Wide and Fund Financial Statements
The government-wide financial statements (e.g., the Statement of Net Position and the Statement of
Activities) present financial information about the city as a whole. The reported information includes all of
the nonfiduciary activities of the city and its component units. For the most part, the effect of interfund
activity has been removed from these statements. These statements are to distinguish between the
governmental and business-type activities of the city. Governmental activities are normally supported by
taxes and intergovernmental revenues, and are reported separately from business-type activities, which rely
to a significant extent on fees and charges for support.
The Statement of Activities demonstrates the degree to which the direct expenses of a given function or
segment are offset by program revenues. Direct expenses are those that are clearly identifiable with a
specific function or segment. Program revenues include 1) charges to customers or applicants who
purchase, use, or directly benefit from goods, services, or privileges provided by a given function or segment
and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a
particular function or segment. Taxes, state shared revenues, investment income, and other items not
included among program revenues are reported instead as general revenues.
Separate financial statements are provided for governmental funds and proprietary funds. Major individual
governmental funds and major individual enterprise funds are reported as separate columns in the fund
financial statements.
As a general rule, the effect of interfund activity has been eliminated from the government-wide financial
statements. Exceptions to this general rule are payments where the amounts are reasonably equivalent in
value to the interfund services provided, and other charges. Elimination of these charges would distort the
direct costs and program revenues reported.
CITY OF CHANDLER, ARIZONA
Notes to the Financial Statements
June 30, 2025
47
NOTE 1 - Summary of Significant Accounting Policies, continued
C.
Measurement Focus, Basis of Accounting and Basis of Presentation
Government-wide Financial Statements - The government-wide financial statements are reported using
the economic resources measurement focus and the accrual basis of accounting, as are the proprietary
fund financial statements. Revenues are recorded when earned and expenses are recorded when a liability
is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues in the
year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility
requirements imposed by the grantor or provider have been met. As a general rule, the effect of interfund
activity has been eliminated from the government-wide financial statements; the exception is any interfund
activity between governmental and business-type activities, such as transfers. Interfund services provided
and used are not eliminated.
Fund Financial Statements - Governmental fund financial statements are reported using the current
financial resources measurement focus and the modified accrual basis of accounting. Revenues are
recognized as soon as they are both measurable and available. Revenues are considered to be available
when they are collectible within the current period or soon enough thereafter to pay liabilities of the current
period. For this purpose, the city considers revenues to be available if they are collected within 60 days of
the end of the current fiscal period. Expenditures are generally recorded when a liability is incurred, as
under accrual accounting. However, debt service resources are provided during the current year for
payment of long-term debt principal and interest due early in the following year (not to exceed one month)
and, therefore, the expenditures and related liabilities have been recognized. Compensated absences and
claims and judgments are recorded only when payment is due.
Property taxes, sales taxes, franchise fees, licenses and permits, charges for services, special assessments
and investment income associated with the current fiscal period are all considered to be susceptible to
accrual and so have been recognized as revenues of the current fiscal period. Grants and similar awards are
recognized as revenue as soon as all eligibility requirements imposed by the grantor or provider have been
met. Miscellaneous revenues are not susceptible to accrual because generally they are not measurable until
received in cash.
Grants and similar awards received before the eligibility requirements are met are recorded as unearned
revenue. Cash receipts received in advance of being billed have also been reported as unearned revenue on
the governmental fund financial statements. Special assessments and delinquent property taxes have been
recorded as deferred inflows of resources. Grant and similar awards received more than 60 days after the
end of the current fiscal period have been recorded as deferred inflows of resources.
The city reports the following major governmental funds:
General Fund - This fund accounts for all financial resources of the city, except those required to be
accounted for in other funds.
General Obligation Bonds Debt Service Fund - This fund accumulates monies for the payment of principal
and interest requirements of the city’s tax supported general obligation bonds. Revenues for repayment are
generated from secondary property taxes.
The city reports the following major proprietary funds:
Water Fund - This fund is used to account for the provision of water services to the residents of the city and
certain county residents within the city’s municipal boundaries. All activities necessary to provide such
service are accounted for in this fund.
CITY OF CHANDLER, ARIZONA
Notes to the Financial Statements
June 30, 2025
48
NOTE 1 - Summary of Significant Accounting Policies, continued
Wastewater Fund - This fund is used to account for the provision of wastewater services to the residents of
the city and certain county residents within the city’s municipal boundaries. All activities necessary to
provide such service are accounted for in this fund.
Additionally, the city reports the following fund type:
Internal Service Fund - Internal Service Funds are established to account for financing of goods and services
provided by one department or agency to other departments or agencies of the city on a cost
reimbursement basis. The Internal Service Fund consists of Self Insurance Funds that administer the city’s
self-insured property, liability, health, dental, short-term disability and workers’ compensation insurance
programs.
Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating
revenues and expenses generally result from providing services and producing and delivering goods in
connection with a proprietary fund’s principal ongoing operations. The principal operating revenues of the
city’s internal service fund are interfund transfers from the general fund for property and liability insurance
and charges to user departments for premiums related to health, dental, workers’ compensation and short-
term disability self-insurance. The principal operating revenues of the city’s enterprise funds are user fees
and charges to customers for water, wastewater, solid waste, airport services and public housing grants.
Operating expenses for these funds include the cost of sales and services, administrative expenses,
depreciation, claims and premiums. All revenues and expenses not meeting this definition are reported as
nonoperating revenues and expenses.
When both restricted and unrestricted resources are available for use, it is the city’s policy to use restricted
resources first where allowable and then unrestricted resources as they are needed.
The focus of governmental fund financial statements is on major funds rather than reporting funds by type.
Each major fund is presented in a separate column. Non-major funds are aggregated and presented in a
single column. Internal service funds are combined and the totals are presented in a single column on the
face of the proprietary fund statements.
D. Budgeting and Budgetary Control
The City Council formally adopts an annual operating budget for the general, special revenue, debt service,
capital projects, enterprise and internal service funds.
The level of control at which expenditures may not exceed budget is by department. Upon written request
by the City Manager, the City Council has the authority to transfer part or all of any unencumbered
appropriation balance from one department to another per City Charter requirement. The City Manager and
department heads have the authority to transfer appropriations between divisions and expenditure
categories within departments. Appropriations totaling $16,539,312 were transferred from the contingency
reserves within the general, special revenue, capital project and internal service funds.
All appropriations expire at the end of the fiscal year except for encumbered and capital improvements
carryforward appropriations. Encumbrance accounting, under which purchase orders, contracts and other
commitments for the future expenditure of funds are recorded in order to reserve that portion of the
related fund balance, is employed in the governmental and proprietary fund types. Encumbrances
outstanding at year-end are reported as part of restricted fund balance for governmental and proprietary
funds (excluding the general fund) unless a negative fund balance is reported. If negative, encumbrances
are reported as part of unassigned fund balance. Carryforwards for capital improvement projects are
reported as part of assigned fund balance at year-end and encumbrances in the general fund are reported
CITY OF CHANDLER, ARIZONA
Notes to the Financial Statements
June 30, 2025
49
NOTE 1 - Summary of Significant Accounting Policies, continued
as part of unassigned fund balance. Significant encumbrances for the general fund are $12,485,588, for
water enterprise fund are $44,072,625, for wastewater enterprise fund are $48,744,358, and for non-major
governmental funds are $97,522,714.
The budgets are adopted on a basis differing from generally accepted accounting principles in that for
budgetary purposes: (1) current year encumbrances are treated as expenditures; (2) bond proceeds for
proprietary funds are considered revenue; (3) capital outlays for enterprise funds are treated as
expenditures; (4) debt service principal payments are treated as expenditures for enterprise funds; (5)
accrued compensated absences are not recognized as expenditures; (6) depreciation and amortization are
not recognized as expenditures; (7) estimated landfill closure and post closure costs are not recognized as
expenditures until incurred; (8) sales tax collected by merchants but not yet required to be remitted at the
end of the fiscal year is not recorded as revenue; and (9) investments are recorded at cost.
On June 3, 1980, the voters of Arizona approved an expenditure limitation for all local governments. This
limitation restricts the growth of expenditures to a percentage determined by population and inflation, with
certain expenditures excluded from the limitation. Through a Home Rule option, any city can adopt its own
alternative expenditure limitation if a majority of the qualified electors vote in favor of the issue at a regular
election. On August 2, 2022, the City of Chandler voters approved to continue under Home Rule for the next
four years.
E.
Pooled Cash and Investments
City Charter, Ordinance, and Trust Agreements authorize the city to invest in obligations guaranteed by the
full faith and credit of the United States of America, government sponsored enterprises, government bonds
with minimum credit ratings of Aa or AA, commercial paper with a minimum short-term rating of P1 or A1,
negotiable certificates of deposit, corporate bonds carrying a minimum credit rating of A, repurchase
agreements and the Local Government Investment Pool. The City of Chandler Municipal Property
Corporation is additionally authorized to invest in banker’s acceptances, U.S. Corporate obligations rated
Aa3 and AA or better, full faith and credit general obligations or special revenue bonds of any state or
political subdivision rated AAA and Aaa, Refcorp interest strips and money market funds.
Nonparticipating interest-earning investment contracts are stated at cost. Money market investments and
participating interest investment contracts with a remaining maturity of one year or less at time of purchase
are stated at amortized cost. All other investments are stated at fair value.
Cash resources of the city are combined to form a pool of cash and investments. Excluded from this pool
are the cash and investments of the Chandler Health Care Benefits Trust, Workers’ Compensation and
Employer Liability Trust, Chandler Industrial Development Authority, Chandler Museum Foundation,
Chandler Cultural Foundation, and the Chandler Housing and Community Services Corporation. Interest
earned on the pooled cash and investments is distributed each month on the basis of average monthly
equity in the pool.
F.
Receivables and Payables
Activity between funds that are representative of lending/borrowing arrangements outstanding at the end
of the fiscal year are referred to as either “due to/from other funds” (i.e., the current portion of interfund
loans) or “advances to/from other funds” (i.e., the non-current portion of interfund loans).
All accounts receivables are shown net of an allowance for uncollectible accounts.
CITY OF CHANDLER, ARIZONA
Notes to the Financial Statements
June 30, 2025
50
NOTE 1 - Summary of Significant Accounting Policies, continued
Receivables not anticipated to be collected within a one year period are classified as long-term assets.
Significant long-term receivables at year-end included $5,154,750 in notes receivable, $4,607,330 in opioid
settlements, $1,817,158 in PFAS settlements, and $9,991,346 in anticipated lease revenue.
Amounts due from other governments include receivables from other governmental entities including, but
not limited to federal, state, or county entities. At year-end the receivables included $5,791,945 due from the
federal government for grants, $8,942,181 due from the State of Arizona for shared revenues and grants,
$5,045,312 due from Maricopa County for grants, and $322,438 due from the City of Mesa for shared costs.
G. Inventories
Inventories are stated at average cost using the first-in/first-out (FIFO) method. Inventories are recorded as
expenses/expenditures when consumed in the government-wide financial statements and governmental
and proprietary fund financial statements, respectively.
H. Prepaid Items
Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as
prepaid items under the purchases method.
I.
Capital Assets
Capital assets, which include property, plant, equipment and infrastructure assets (e.g., roads, bridges,
sidewalks and similar items), are reported in the applicable governmental or business-type activities
columns in the government-wide financial statements. Capital assets are defined by the city as assets with
an initial, individual cost of $10,000 or more and an estimated useful life of more than one year. Such assets
are recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital
assets are recorded at acquisition value at the date of donation. The city defines general government
infrastructure capital assets included in capital improvement projects completed at year’s end in excess of
$100,000.
The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend
assets’ lives are not capitalized. Major outlays for capital assets and improvements are capitalized as
projects are completed.
Estimated useful lives for capital assets were determined based on the city’s historical experience and
various industry standards. Capital assets of the city are depreciated/amortized using the straight-line
method over the following estimated useful lives:
Assets
Years
Buildings
20-40
Building improvements
20
Infrastructure
12-50
Machinery and equipment
5-15
Subscription based IT arrangements
varies based on length of contract
System improvements
25
Vehicles
4-7
Water rights
100
CITY OF CHANDLER, ARIZONA
Notes to the Financial Statements
June 30, 2025
51
NOTE 1 - Summary of Significant Accounting Policies, continued
J.
Deferred Outflows/Inflows of Resources
In addition to assets, the statement of financial position includes a separate section for deferred outflows of
resources. Deferred outflows of resources represent a consumption of net assets that applies to a future
period(s) and so will not be recognized as an outflow of resources (expense/expenditure) until then. The city
has two items that qualify for reporting in this category: the deferred charge on refunding reported in the
government-wide statement of net position and deferred amounts related to pension and OPEB. The
deferred charge on refunding resulted from the difference between the carrying value of the refunded debt
and its re-acquisition price. This amount is deferred and amortized over the shorter of the life of the
refunded or refunding debt. The deferred amounts related to pension and OPEB relate differences between
estimated and actual investment earnings, changes in actuarial assumptions and other pension and OPEB
related changes.
In addition to liabilities, the statement of financial position includes a separate section for deferred inflows
of resources. Deferred inflows of resources represent an acquisition of net assets that applies to future
period(s) and so will not be recognized as an inflow of resources (revenue) until that time. The city has three
items that qualify for reporting in this category. Unavailable revenue is reported only in the governmental
funds balance sheet. The governmental funds report unavailable revenues from property taxes,
settlements, and public private partnerships. These amounts are deferred and recognized as an inflow of
resources in the period that the amounts become available. In the government-wide financial statement the
city reports deferred amounts related to OPEB and pension plan items, leases and public private
partnerships.
K.
Compensated Absences
Vacation leave vests with the employee as it is earned dependent on accumulated time and the individual’s
vacation benefits associated with their rank within the city. All employees may carryforward only the
amount of vacation benefits equal to the maximum allowable earned credits for the preceding calendar
year. Upon termination or retirement, an employee will be compensated for accumulated vacation leave
dependent on accumulated time and the individual's vacation benefits associated with their rank within the
city. Payment will be based on the individual's rate of pay at termination or retirement. Upon death, the
same benefits shall be paid to the employee's beneficiary. Liabilities are recognized on the government-wide
and proprietary fund financial statements for leave that has not been used, as well as leave that has been
used but not yet paid in cash or settled through non-cash means.
Sick leave benefits provided for ordinary sick pay are not vested with the employee. Upon retirement, an
employee will be compensated for 50 percent of accumulated sick leave. Payment will be based on the
monthly compensation paid to the employee at the time of retirement and paid into a Retirement Health
Savings Plan. Upon death, the same benefits shall be paid to the employee's beneficiary. Liabilities are
recognized on the government-wide and proprietary fund financial statements for leave that has not been
used, as well as leave that has been used but not yet paid in cash or settled through non-cash means.
L.
Long-Term Obligations
In the government-wide financial statements and proprietary fund statements, long-term debt and other
long-term obligations are reported as liabilities in the applicable governmental or business-type activities
and proprietary fund Statement of Net Position. Bond related items, such as premiums and discounts, are
deferred and amortized over the life of the bonds using the straight-line method. Bond issuance costs are
expensed in the current period.
CITY OF CHANDLER, ARIZONA
Notes to the Financial Statements
June 30, 2025
52
NOTE 1 - Summary of Significant Accounting Policies, continued
In the fund financial statements, governmental funds recognize bond premiums and discounts, as well as
bond issuance costs, during the current period. The face amount of debt issued is reported as other
financing sources. Premiums received on debt issuances are reported as other financing sources while
discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld
from the actual debt proceeds received, are reported as debt service expenditures.
The debt service funds are specifically established to account for and service the long-term obligations for
the governmental funds. Each enterprise fund individually accounts for and services the applicable bonds
and lease purchase obligations which benefit these funds. Long-term obligations are recognized as a liability
of a governmental fund when due or when resources have been accumulated for payment early in the
following year. For other long-term obligations, only the portion that is expected to be financed from
expendable available financial resources is reported as a fund liability of a governmental fund.
M. Fund Balance
In the fund financial statements, governmental funds report fund balances as nonspendable, restricted,
committed, assigned and unassigned. Nonspendable, restricted and committed classifications represent
“reserved” fund balances whereas assigned and unassigned classifications represent “unreserved” fund
balances (see Note 9 for additional details).
N. Capital Contributions
Capital contributions, as shown in the enterprise funds, represent federal and state grants received,
subdividers’ costs of installing water mains, water service connections installed at the customers’ expense
and transfers of equipment from governmental funds. Capital contributions are shown as an inflow of
resources in both the government-wide and fund financial statements (see Note 8).
O. Pensions
For purposes of measuring the net pension liability, deferred outflows of resources and deferred inflows of
resources related to pensions and pension expense, information about the pension plan’s fiduciary net
position and additions to/deductions from the plan’s fiduciary net position have been determined on the
same basis as they are reported by the plan. For this purpose, benefit payments (including refunds of
employee contributions) are recognized when due and payable in accordance with the benefit terms.
Investments are reported at fair value.
P.
Post-Employment Health Care and Life Insurance Benefits
In addition to providing pension benefits, the city allows for continuance of certain health care and life
insurance benefits for retired employees. Substantially all of the city's employees may become eligible for
those benefits if they are eligible to receive a retirement pension when leaving employment with the city.
The cost of retiree health care and life insurance premiums is borne both by the retiree and the specific
retirement plan under which they participated. There is no direct cost paid by the city.
Q. Statements of Cash Flows
The city considers all highly liquid investments (including restricted assets) with an original maturity of three
months or less to be cash equivalents. In the statements of cash flows, cash receipts and payments are
classified according to whether they stem from operating, noncapital financing, capital and related financing
or investing activities.
CITY OF CHANDLER, ARIZONA
Notes to the Financial Statements
June 30, 2025
53
NOTE 1 - Summary of Significant Accounting Policies, concluded
R.
Interfund Activity
Flows of cash from one fund to another without a requirement for repayment are reported as interfund
transfers. Interfund transfers between governmental funds are eliminated in the Statement of Activities.
Interfund transfers in the fund statements are reported as other financing sources/uses in governmental
funds.
S.
Use of Estimates
The preparation of the financial statements in conformity with GAAP requires management to make
estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of
contingent assets and liabilities at the date of the financial statements and the reported amounts of
revenues and expenses during the reporting period. Actual results could differ from those estimates.
T.
Leases
As lessor, the city recognizes lease receivables with an initial, individual value of $100,000 or more. If there is
no stated rate in the lease contract (or if the stated rate is not the rate the city charges the lessee) and the
implicit rate cannot be determined, the city uses its own estimated incremental borrowing rate as the
discount rate to measure lease receivables.
U. Subscription Based IT Arrangements (SBITA)
As the user of hosted software programs, the city recognizes those agreements that are calculated to have
initial estimated total current value of $100,000 or more for the life of the contract. If there is no stated rate
in the subscription contract (or if the stated rate is not the rate the city charges the lessee) and the implicit
rate cannot be determined, the city uses its own estimated incremental borrowing rate as the discount rate
to measure SBITA liabilities.
V. Public-Private, Public-Public (PPPs) and Availability Payment Arrangements (APAs)
The city may at times enter into agreements or arrangements with partners from other public agencies, or
private companies to accomplish goals of city leadership and provide services to the residents of Chandler.
The city recognizes any agreement that has been entered into and qualifies under the Governmental
Accounting Standards Board Statement 94 to provide users of the financial statements with details on the
agreements.
W. Implementation of New Accounting Standards
During the year ended June 30, 2025, the city implemented the provisions of Governmental Accounting
Standards Board Statement 101, Compensated Absences. This Statement updates the recognition and
measurement guidance for compensated absences. Liabilities are recognized for leave that has not been
used, as well as leave that has been used but not yet paid in cash or settled through noncash means. The
city's analysis of compensated absences in effect at the beginning of the year resulted in no changes to
beginning balances reported in the financial statements due to the implementation of this standard.
CITY OF CHANDLER, ARIZONA
Notes to the Financial Statements
June 30, 2025
54
NOTE 2 - Cash and Investments
The city maintains a cash and investment pool that is available for use by all funds, except for the Chandler
Industrial Development Authority, the Chandler Cultural Foundation, the Chandler Museum Foundation, the
Chandler Housing and Community Development Services Corporation, and the Chandler Health Care
Benefits Trust. Each fund’s portion of this pool is displayed on the financial statements as Equity in Pooled
Cash and Investments. Pooled cash and investments are stated at fair value with accrued interest shown
separately. Restricted cash and investments are amounts held separately by trustees and amounts
segregated due to their source and future intent. In addition, the Industrial Development Authority, the
Chandler Cultural Foundation, the Chandler Museum Foundation, and the CHCSC separately hold
investments and are not included in the subsequent disclosures.
Deposits
At year-end, cash on hand was $45,007, the carrying amount of the city deposits was $41,059,110, and the
bank balance was $44,988,416. Of the bank balance, $250,000 was covered by federal depository insurance
and $44,738,416 was covered by collateral held in the pledging bank’s trust department in the city’s name. In
addition, at June 30, 2025, the city had $119,330,561 of restricted cash held by paying agent consisting of
$72,047,697 in July 1, 2025 debt service payments, and $47,282,864 in bond proceeds not yet drawn from
the 2023 Excise Tax Revenue Obligation and General Obligation Bond issuances. The cash held by paying
agent is in money market funds invested primarily in short-term U.S. Treasury securities.
Fair Value Measurements. The city categorizes its fair value measurements within the fair value hierarchy
established by generally accepted accounting principles. The hierarchy is based on the valuation inputs used
to measure the fair value of the asset.
•
Level 1 inputs are quoted prices in active markets for identical assets
•
Level 2 inputs are significant other observable inputs
•
Level 3 inputs are significant unobservable inputs
At June 30, 2025, the city had the following investments and maturities:
Investment Maturities (in Years)
Investment Type
Category
Fair Value
Less than 1
Year
1-5 Years
Concentration
of
Credit Risk %
S&P/Moody
Credit
Rating
U.S. Treasuries
Level 1
$ 363,960,181 $ 40,241,331 $ 323,718,850
53.12 %
U.S. Agencies:
Fannie Mae
Level 2
504,498
504,498
—
0.07
AA+/Aa1
Federal Farm Credit Banks
Level 2
1,714,071
—
1,714,071
0.25
AA+/Aa1
Federal Home Loan Bank
Level 2
8,023,294
—
8,023,294
1.17
AA+/Aa1
Freddie Mac
Level 2
1,734,381
—
1,734,381
0.25
AA+/Aa1
Corporate Bonds:
Adobe Inc
Level 2
3,344,203
—
3,344,203
0.49
A+/A1
Advanced Micro Devices
Inc
Level 2
176,282
—
176,282
0.03
A/A2
Amazon.com Inc
Level 2
97,384
97,384
—
0.01
AA/A1
AstraZeneca PLC
Level 2
2,684,084
—
2,684,084
0.39
A+/A1
Bank of America Corp
Level 2
8,400,472
—
8,400,472
1.23
A+/Aa2
CITY OF CHANDLER, ARIZONA
Notes to the Financial Statements
June 30, 2025
55
NOTE 2 - Cash and Investments, continued
Investment Maturities (in Years)
Investment Type
Category
Fair Value
Less than 1
Year
1-5 Years
Concentration
of
Credit Risk %
S&P/Moody
Credit
Rating
Bank of New York Mellon
Corp
Level 2
11,814,407
3,843,533
7,970,874
1.72
A/Aa3
BlackRock Inc
Level 2
5,636,261
—
5,636,261
0.82
AA-/Aa3
Caterpillar Inc
Level 2
4,745,153
2,388,911
2,356,242
0.69
A/A2
Charles Schwab Corp
Level 2
223,706
223,706
—
0.03
A-/A2
Chevron Corp
Level 2
11,038,723
—
11,038,723
1.61
AA-/Aa2
Cisco Systems Inc
Level 2
4,429,546
—
4,429,546
0.65
AA-/A1
Citibank Na
Level 2
1,777,716
—
1,777,716
0.26
A+/Aa3
Citigroup Inc
Level 2
317,229
—
317,229
0.05
BBB+/A3
Eli Lilly & Co
Level 2
3,045,054
—
3,045,054
0.44
A+/Aa3
Equitable Financial Life
Global Funding
Level 2
5,061,085
—
5,061,085
0.74
A+/A1
Goldman Sachs Bank Usa
Level 2
7,135,170
—
7,135,170
1.04
A+/A1
Home Depot Inc
Level 2
3,282,795
—
3,282,795
0.48
A/A2
Johnson & Johnson
Level 2
91,510
—
91,510
0.01
AAA/Aaa
JPMorgan Chase & Co
Level 2
11,748,098
—
11,748,098
1.71
AA-/Aa2
Kenvue Inc
Level 2
2,047,904
—
2,047,904
0.30
A/A1
Mastercard Inc
Level 2
5,708,596
—
5,708,596
0.83
A+/Aa3
Microsoft Corp
Level 2
3,109,411
263,846
2,845,565
0.45
AAA/Aaa
Morgan Stanley Bank
Level 2
7,551,628
—
7,551,628
1.10
A+/Aa3
National Rural Utilities
Cooperative Finance Corp
Level 2
2,269,948
—
2,269,948
0.33
A-/A2
New York Life Global
Funding
Level 2
5,562,953
—
5,562,953
0.81
AA+/Aa1
Novartis AG
Level 2
6,602,670
6,602,670
—
0.96
AA-/Aa3
PACCAR Inc
Level 2
4,425,012
—
4,425,012
0.65
A+/A1
PepsiCo Inc
Level 2
473,810
154,937
318,873
0.07
A+/A1
Salesforce Inc
Level 2
2,137,305
—
2,137,305
0.31
A+/A1
State Street Corp
Level 2
7,614,568
—
7,614,568
1.11
A/Aa3
Target Corp
Level 2
2,130,834
—
2,130,834
0.31
A/A2
Toyota Motor Corp
Level 2
7,256,924
—
7,256,924
1.06
A+/A1
Truist Financial Corp
Level 2
2,312,257
—
2,312,257
0.34
A-Baa1
US Bank Na
Level 2
5,005,120
—
5,005,120
0.73
A+/A2
Walmart Inc
Level 2
5,593,176
79,910
5,513,266
0.82
AA/Aa2
Wells Fargo Bank Na
Level 2
6,086,473
—
6,086,473
0.89
A+/Aa2
Municipal Bonds:
Scottsdale-REF
Level 2
1,645,000
1,645,000
—
0.24
AAA/Aaa
Asset Backed:
Amxca 2024-1 A
Level 2
5,099,838
—
5,099,838
0.74
AAA/NA
Amxca 2024-3 A
Level 2
2,023,493
—
2,023,493
0.30
AAA/NA
Baat 2023-1A A3
Level 2
983,472
—
983,472
0.14
NR/Aaa
Baat 2023-2A A3
Level 2
2,337,374
—
2,337,374
0.34
NR/Aaa
CITY OF CHANDLER, ARIZONA
Notes to the Financial Statements
June 30, 2025
56
NOTE 2 - Cash and Investments, continued
Investment Maturities (in Years)
Investment Type
Category
Fair Value
Less than 1
Year
1-5 Years
Concentration
of
Credit Risk %
S&P/Moody
Credit
Rating
Baat 251 A3
Level 2
1,506,880
—
1,506,880
0.22
NA/Aaa
Bacct 2023-A2 A2
Level 2
1,187,334
—
1,187,334
0.17
NR/Aaa
Bacct 2025-A1 A
Level 2
1,610,594
—
1,610,594
0.24
AAA/NR
Bmwot 2022-A A3
Level 2
123,264
—
123,264
0.02
AAA/Aaa
Bmwot 2025-A A3
Level 2
2,622,263
—
2,622,263
0.38
AAA/Aaa
Carmx 2022-2 A3
Level 2
246,755
—
246,755
0.04
AAA/Aaa
Carmx 2025-2 A3
Level 2
3,935,711
—
3,935,711
0.57
AAA/NA
Cccit 2023-A1 A1
Level 2
722,159
—
722,159
0.11
AAA/Aaa
Chait 2024-A1 A
Level 2
3,067,024
—
3,067,024
0.45
AAA/NR
Chaot 245 A3
Level 2
1,248,656
—
1,248,656
0.18
AAA/NA
Fitat 2023-1 A3
Level 2
1,959,034
—
1,959,034
0.29
AAA/Aaa
Fordo 2024-C A3
Level 2
1,997,216
—
1,997,216
0.29
AAA/NA
Fordo 2025-A A3
Level 2
5,015,083
—
5,015,083
0.73
AAA/Aaa
Gmcar 2024-1 A3
Level 2
316,555
—
316,555
0.05
NR/Aaa
Gmcar 2025-1 A3
Level 2
908,062
—
908,062
0.13
NA/Aaa
Gmcar 2025-2 A3
Level 2
603,152
—
603,152
0.09
AAA/Aaa
Harot 2023-3 A3
Level 2
1,686,359
—
1,686,359
0.25
AAA/NR
Harot 2024-3 A3
Level 2
1,935,477
—
1,935,477
0.28
NA/Aaa
Harot 2025-1 A3
Level 2
2,518,835
—
2,518,835
0.37
AAA/NR
Hart 2023-C A3
Level 2
899,652
—
899,652
0.13
AAA/NR
Hart 2024-A A3
Level 2
1,513,376
—
1,513,376
0.22
AAA/NA
Hart 2024-B A3
Level 2
5,009,542
—
5,009,542
0.73
AAA/NA
Hart 2025-A A3
Level 2
2,198,213
—
2,198,213
0.32
AAA/NR
Kcot 2023-2A A3
Level 2
781,375
—
781,375
0.11
NR/Aaa
Kcot 2025-1A A3
Level 2
1,372,727
—
1,372,727
0.20
NR/Aaa
Narot 2024-B A3
Level 2
3,006,268
—
3,006,268
0.44
NA/Aaa
Narot 2025-A A3
Level 2
5,049,644
—
5,049,644
0.74
NA/Aaa
Taot 2023-C A3
Level 2
587,577
—
587,577
0.09
AAA/NR
Taot 2023-D A3
Level 2
612,065
—
612,065
0.09
AAA/NR
Taot 2024-B A3
Level 2
2,026,534
—
2,026,534
0.30
AAA/Aaa
Taot 2025-B A3
Level 2
1,348,076
—
1,348,076
0.20
AAA/NR
Valet 2023-2 A3
Level 2
4,060,518
—
4,060,518
0.59
NA/Aaa
Federal Agency Commercial
Mortgage-Backed Security:
FHMS
Level 2
61,258,819
—
61,258,819
8.94
AA+/Aa1
Bank Note:
Morgan Stanley Bank
Level 2
1,735,307
—
1,735,307
0.25
A+/Aa3
Wells Fargo Bank Na Bank
Level 2
4,551,947
—
4,551,947
0.66
A+/Aa2
CITY OF CHANDLER, ARIZONA
Notes to the Financial Statements
June 30, 2025
57
NOTE 2 - Cash and Investments, concluded
Investment Maturities (in Years)
Investment Type
Category
Fair Value
Less than 1
Year
1-5 Years
Concentration
of
Credit Risk %
S&P/Moody
Credit
Rating
Money Market - Certificates of
Deposit
Level 2
3,041,688
—
3,041,688
0.44
A+/Aa2
Money Market Fund
Level 1
4,108,902
4,108,902
—
0.60
AAAm/NR
Cash and cash equivalents
Level 1
5,307
5,307
—
—
AAA/Aaa
Total
$ 685,341,019 $ 60,159,935 $ 625,181,084
100.00 %
Investment Valuation Techniques. U.S. treasuries, agencies, money market, and equity securities classified in
Level 1 of the fair value hierarchy are valued using prices quoted in active markets for identical securities.
Governmental bonds, corporate bonds, other fixed income instruments, and international bonds classified
in Level 2 of the fair value hierarchy are valued based on significant other observable inputs, which may
include, but are not limited to, quoted prices for similar assets or liabilities in markets that are active, quoted
prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted
prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatility,
prepayment speeds, loss severity, credit risks and default rates) or other market corroborated inputs.
Interest Rate Risk. In accordance with its investment policy, the city manages its exposure to declines in fair
values by limiting the maturities of its investment portfolio to five years.
Credit Risk. The city’s investment policy allows for investments in obligations guaranteed by the full faith and
credit of the United States of America, government sponsored enterprises, government bonds with
minimum credit ratings of AA+ or Aa1, commercial paper with a minimum short-term rating of A-1 or P-1,
negotiable certificates of deposit, corporate bonds carrying a minimum credit rating of BBB+ or Baa1,
repurchase agreements and the Local Government Investment Pool. The city’s investment in U.S. Agencies,
Corporate Bonds, Municipal bonds, and Money Market Funds were rated no lower than AA+, BBB+, AAA and
AAAm by Standard & Poor’s, respectively, as of June 30, 2025.
Custodial Credit Risk - Investments. The custodial credit risk for investments is the risk that, in the event of the
failure of the counterparty to a transaction, the city will not be able to recover the value of its investments or
collateral securities that are in the possession of an outside party. To limit its exposure, the city's
investment policy requires all security transactions that are exposed to custodial credit risk to be processed
on a delivery versus payment (DVP) basis with the underlying investments held by a third party acting as the
city's agent separate from where the investment was purchased or by the trust department of the bank
where purchased, in the city's name.
Concentration of Credit Risk. The city’s investment policy does not allow for an investment in any one issuer
that is in excess of 5 percent of the city’s total investments. Securities issued by the United States of America
or its agencies are exempt from this provision. More than 5 percent of the city’s investments are in U.S.
Agencies, U.S. Treasuries and Money Market Funds. See percentages in table on preceding pages.
CITY OF CHANDLER, ARIZONA
Notes to the Financial Statements
June 30, 2025
58
NOTE 3 - Property Taxes
The city’s property tax is levied and collected by the Maricopa County Treasurer. Property taxes are levied on
or before the third Monday in August. The levy is based upon the January 1 limited property tax value of
property as determined by the Maricopa County Assessor. Under Arizona Revised Statutes (A.R.S.), two
assessed valuations are used. One is for primary taxes (used to fund operating expenditures) and the other
is for secondary taxes (used to meet general obligation debt service requirements). Taxes are due in two
equal installments on October 1 and March 1 following the levy date and are delinquent on the first day of
November and May, respectively. Delinquent amounts bear interest at the rate of 16 percent.
The city also levies various personal property taxes during the year, which are due the second Monday of
the month following receipt of the tax notice, and become delinquent 30 days thereafter.
Pursuant to A.R.S. a lien against assessed real and personal property attaches on the first day of January
preceding assessment and levy; however according to case law, an enforceable legal claim to the asset does
not arise.
The State Constitution and State law specify a property tax levy limitation system. The system consists of
two levies, a limited levy known as the primary property tax levy and an unlimited levy referred to as the
secondary levy, which may only be used to retire bonded indebtedness. There is also a control on the
assessed value of property for primary tax purposes. The base year for the tax system is fiscal year 1979-80.
From this base year, two assessed values evolve. The primary assessed values are allowed to increase by no
more than 5 percent a year. The dollar amount of the secondary property tax levy is "unlimited" and the
actual limited property value of property is used in determining the tax rate.
The primary tax levy is limited to an increase of 2 percent over the previous year's maximum allowable
primary levy, plus an increased dollar amount because of a net gain in property not taxed the previous year.
Also, the primary property tax from all taxing jurisdictions for homeowners may not exceed 1 percent of the
market value of their homes. If the combined primary property tax (for the city, County, School District, etc.)
exceeds 1 percent of the market value of the homes, the school districts will reduce their rate until the
homeowners' aggregate rate is equal to or less than the allowable 1 percent. The State will then subsidize
the school districts for the reduced revenue. This 1 percent limitation applies to primary property taxes only
and does not affect the secondary property tax levy.
In fiscal year 2024-25, current property tax collections were $43,584,889 or 99 percent of the tax levy, and
were recognized as revenue when received. At fiscal year end, the delinquent property tax expected to be
collected within 60 days is recognized as revenue and recorded as a receivable. Property taxes levied in
August 2025 are not available for fiscal year 2024-25; accordingly, such taxes will not be recognized as
revenue until fiscal year 2025-26.
CITY OF CHANDLER, ARIZONA
Notes to the Financial Statements
June 30, 2025
59
NOTE 4 - Capital Assets
A summary of changes in capital assets for governmental activities is as follows:
Balance
Balance
Governmental Activities
June 30, 2024
Additions
Retirements
June 30, 2025
Capital assets, not being depreciated/
amortized:
Land
$
101,748,183
$
502,174
$
—
$
102,250,357
Construction in progress
116,544,753
102,746,884
(16,149,176)
203,142,461
Total capital assets not being depreciated/
amortized
218,292,936
103,249,058
(16,149,176)
305,392,818
Capital assets, being depreciated/
amortized:
Infrastructure
835,315,641
5,870,736
—
841,186,377
Building and improvements
487,933,503
11,936,768
—
499,870,271
Subscription based IT arrangements
7,622,440
525,840
—
8,148,280
Vehicles, machinery and equipment
118,760,405
6,943,569
(2,199,841)
123,504,133
Total capital assets being depreciated/
amortized
1,449,631,989
25,276,913
(2,199,841)
1,472,709,061
Less accumulated depreciation/
amortization for:
Infrastructure
(515,856,483)
(26,545,929)
—
(542,402,412)
Building and improvements
(294,645,524)
(18,726,158)
—
(313,371,682)
Subscription based IT arrangements
(2,557,797)
(2,536,851)
—
(5,094,648)
Vehicles, machinery and equipment
(91,825,586)
(7,494,393)
2,056,850
(97,263,129)
Total accumulated depreciation/
amortization
(904,885,390)
(55,303,331)
2,056,850
(958,131,871)
Total capital assets, being depreciated/
amortized, net
544,746,599
(30,026,418)
(142,991)
514,577,190
Governmental activities capital assets, net
$
763,039,535
$
73,222,640
$
(16,292,167) $
819,970,008
Construction in progress in the governmental activities capital assets is comprised of the following:
Expended to
Remaining
June 30, 2025
Commitments
Streets
$ 119,731,298 $ 61,627,481
Parks and recreation
55,979,269
13,248,334
Buildings and related improvements
27,431,894
21,543,512
Total
$ 203,142,461 $ 96,419,327
CITY OF CHANDLER, ARIZONA
Notes to the Financial Statements
June 30, 2025
60
NOTE 4 - Capital Assets, continued
A summary of changes in capital assets for business-type activities is as follows:
Balance
Balance
Business-Type Activities
June 30, 2024
Additions
Retirements
June 30, 2025
Capital assets, not being depreciated/
amortized:
Land
$
57,328,151
$
1,033,132
$
—
$
58,361,283
Construction in progress
188,363,158
118,955,242
(138,803,477)
168,514,923
Total capital assets not being depreciated/
amortized
245,691,309
119,988,374
(138,803,477)
226,876,206
Capital assets, being depreciated/
amortized:
System improvements
1,442,651,348
138,335,626
—
1,580,986,974
Building and improvements
27,167,341
578,074
—
27,745,415
Vehicles, machinery and equipment
24,397,609
2,167,056
(499,581)
26,065,084
Water rights
42,860,250
—
—
42,860,250
Land improvements
2,985,423
—
—
2,985,423
Total capital assets being depreciated/
amortized
1,540,061,971
141,080,756
(499,581)
1,680,643,146
Less accumulated depreciation/
amortization for:
System improvements
(904,184,196)
(44,786,074)
—
(948,970,270)
Buildings and improvements
(20,891,614)
(668,605)
—
(21,560,219)
Vehicles, machinery and equipment
(20,472,282)
(1,031,579)
450,081
(21,053,780)
Water rights
(1,500,110)
(428,603)
—
(1,928,713)
Land improvements
(2,530,657)
(65,092)
—
(2,595,749)
Total accumulated depreciation
(949,578,859)
(46,979,953)
450,081
(996,108,731)
Total capital assets, being depreciated/
amortized, net
590,483,112
94,100,803
(49,500)
684,534,415
Business-type activities capital assets, net
$
836,174,421
$
214,089,177
$
(138,852,977) $
911,410,621
Construction in progress in the business-type activities capital assets is comprised of the following:
Expended to
Remaining
June 30, 2025
Commitments
Sewer system improvements
$ 92,644,695 $ 45,057,844
Water system improvements
71,354,847
42,636,501
Solid waste system improvements
2,180,459
245,637
Airport improvements
2,334,922
2,776,351
Total
$ 168,514,923 $ 90,716,333
CITY OF CHANDLER, ARIZONA
Notes to the Financial Statements
June 30, 2025
61
NOTE 4 - Capital Assets, concluded
Depreciation/amortization expense was charged to functions/programs as follows:
Governmental activities:
General government
$ 10,306,166
Public safety
7,552,723
Community services
8,743,045
Transportation and development
28,701,397
Total depreciation/amortization expense -
governmental activities
$ 55,303,331
Business-type activities:
Water
$ 16,481,069
Wastewater
28,430,950
Solid waste
612,594
Airport
776,734
Chandler housing authority
678,606
Total depreciation expense - business-type activities
$ 46,979,953
Projects are reported as construction in progress when initially identified. Throughout the life of the project,
it may be determined that the project does not meet the requirements for capitalization. Once a project is
determined to not meet the requirements for capitalization it is removed from construction in progress. As
a result, deletions and transfers out from construction in progress may be more than what is reported as
additions and transfers in to depreciable capital assets.
NOTE 5 - Long-Term Liabilities
A.
General Obligation Bonds
The city issues general obligation bonds to provide funds for the acquisition and construction of major
capital facilities. General obligation bonds have been issued for both governmental and business-type
activities. Bonds issued for business-type activities are reported in the enterprise funds as they are to be
repaid from enterprise revenues. In addition, general obligation bonds have been issued to refund other
general obligation bonds. General obligation bonds are direct obligations and pledge the full faith and credit
of the city. These bonds are generally issued as 10 to 15 year serial bonds, except for refunding issues, with
varying amounts of principal maturing each year. The city has pledged future ad valorem tax revenues and
net enterprise revenues to repay a total of $292,245,056 in outstanding principal and interest of general
obligation bonds and are payable through July 1, 2035. Proceeds of the bonds were used for governmental
and business-type activities.
Governmental Activities General Obligation Bonds
Annual principal and interest payments on the government activities bonds were less than 96 percent of
total ad valorem taxes. The total principal and interest remaining to be paid on the governmental activities
portion of the bonds is $250,093,656. Principal and interest paid for the current year and total ad valorem
property taxes were $42,717,393 and $44,578,637 respectively.
CITY OF CHANDLER, ARIZONA
Notes to the Financial Statements
June 30, 2025
62
NOTE 5 - Long-Term Liabilities, continued
General obligation bonds outstanding as reported in governmental and business-type activities at June 30,
2025 were as follows:
Outstanding
Governmental Activities General Obligation Bonds:
June 30, 2025
$214,540,000 Refunding Bonds, Series 2014, due in annual installments of
$10,370,000 to $16,210,000 through 7/1/28; interest at 3 percent to 5 percent.
$
10,515,000
$39,050,000 Refunding Bonds, Series 2016, due in annual installments of
$4,980,000 to $15,465,000 through 7/1/27; interest at 3 percent to 5 percent.
25,500,000
$58,740,000 Capital Improvement Bonds, Series 2017, due in annual installments
of $3,075,000 to $4,160,000 through 7/1/32; interest at 2.3 percent to 4 percent.
29,715,000
$30,400,000 Capital Improvement Bonds, Series 2019, due in annual installments
of $1,000,000 to $2,325,000 through 7/1/35; interest at 2.3 percent to 4 percent.
22,475,000
$48,205,000 Refunding Bonds, Series 2021, due in annual installments of
$117,390 to $14,781,390 through 7/1/28; interest at 0.4 percent to 1.75 percent.
25,887,223
$31,295,000 Capital Improvement Bonds, Series 2021, due in annual installments
of $250,000 to $13,120,000 through 7/1/28; interest at 5 percent.
2,150,000
$106,415,000 Capital Improvement Bonds, Series 2023, due in annual
installments of $6,750,000, to $15,625,000 through 7/1/35; interest at 2.125
percent to 4 percent.
99,665,000
Total Governmental Activities General Obligation Bonds
$
215,907,223
Business-Type Activity General Obligation Bonds
Annual principal and interest payments on the business-type activities bonds were approximately 27
percent of net water and wastewater system revenues. The total principal and interest remaining to be paid
on the business-type activities portion of the general obligation bonds is $42,151,401. Principal and interest
paid for the current year and total net water system, wastewater system revenues were $10,944,680 and
$39,824,562 respectively.
Outstanding
Business-Type Activities General Obligation Bonds:
June 30, 2025
$214,540,000 Refunding Bonds, Series 2014, due in annual installments of
$6,895,000 to $11,036,000 through 7/1/28; interest at 3 percent to 5 percent.
$
6,895,000
$39,050,000 Refunding Bonds, Series 2016, due in annual installments of
$2,395,000 to $8,650,000 through 7/1/27; interest at 3 percent to 5 percent.
13,550,000
$48,205,000 Refunding Bonds, Series 2021, due in annual installments of
$68,064 to $11,123,610 through 7/1/28; interest at 0.4 percent to 1.75 percent.
19,492,777
Total Business-Type Activities General Obligation Bonds
$
39,937,777
CITY OF CHANDLER, ARIZONA
Notes to the Financial Statements
June 30, 2025
63
NOTE 5 - Long-Term Liabilities, continued
B.
Excise Tax Revenue Obligations
Excise tax revenue obligations are issued to provide funds to acquire and construct certain improvements to
the water and sewer systems of the city and to pay the costs incurred in connection with the issuance of the
obligations. The city has collateralized the obligations by the pledge of all unrestricted excise taxes
(transaction privilege tax, franchise fees, state-shared sales and income taxes and fees for licenses and
permits) including all fines and forfeitures, which the city presently or in the future imposes or receives from
other entities and which are not earmarked by the contributor for a contrary or inconsistent purpose.
The city agrees that, so long as any of the obligations remain outstanding and their principal and interest are
unpaid, it will not further encumber the excise taxes unless the excise taxes received by the city in the
immediately preceding fiscal year are at least three times the highest combined debt service for the current
or any succeeding fiscal year for all outstanding parity obligations, including the additional parity obligations
proposed, be secured by a pledge of the same excise taxes. The city does have the right to incur additional
parity obligations payable from and secured by the excise taxes on parity with the obligations.
Annual principal and interest payments on the obligations are being repaid from net water and wastewater
system revenues and were approximately 45% percent of net system revenues. The total principal and
interest to be paid on the obligations is $296,497,799. Principal and interest paid for the current year and
net water and wastewater system revenues were $18,051,759 and $39,824,562 respectively. Total excise tax
revenues during the fiscal year were $346,499,147. Principal and interest payments were approximately 5
percent of total excise tax revenues.
Outstanding
Business-Type Activities Excise Tax Revenue Obligations:
June 30, 2025
$66,660,000 Water & Sewer Excise Tax Revenue Obligations, Series 2015, due in
annual installments of $2,635,000 to $5,620,000 through 7/1/35; interest at 3
percent to 5 percent.
46,625,000
$19,510,000 Water & Sewer Excise Tax Revenue Refunding Obligations, Series
2016, due in annual installments of $1,180,000 to $3,050,000 7/1/20 through
7/1/28; interest at 4 percent to 5 percent.
11,185,000
$36,220,000 Water & Sewer Excise Tax Revenue Obligations, Series 2017, due in
annual installments of $775,000 to $4,045,000 through 7/1/37; interest at 3
percent to 5 percent.
29,855,000
$13,000,000 Water & Sewer Excise Tax Revenue Obligations, Series 2019, due in
annual installments of $1,270,000 to $1,765,000 through 7/1/28; interest at 5
percent.
6,705,000
$85,460,000 Water & Sewer Excise Tax Revenue Refunding Obligations, Series
2021, due in annual installments of $1,040,000 to $11,965,000 through 7/1/33;
interest at 0.42 percent to 2.3 percent.
81,670,000
$64,995,000 Water & Sewer Excise Tax Revenue Refunding Obligations, Series
2023, due in annual installments of $455,000 to $9,275,000 through 7/1/38;
interest at 5 percent.
64,955,000
Total Business-Type Activities Excise Tax Revenue Obligations
$
240,995,000
CITY OF CHANDLER, ARIZONA
Notes to the Financial Statements
June 30, 2025
64
NOTE 5 - Long-Term Liabilities, continued
Changes in Long-Term Liabilities
Balance
Balance
Due within
Governmental Activities:
June 30, 2024
Additions
Reductions
June 30, 2025
One Year
Compensated absences
$ 15,362,525
$
5,748,001
$
—
$ 21,110,526
$
7,031,432
Bonds payable:
General obligation bonds
249,009,159
—
(33,101,936) 215,907,223
37,975,023
Issuance premiums
22,348,687
—
(3,335,432)
19,013,255
3,335,432
Total bonds payable
271,357,846
—
(36,437,368) 234,920,478
41,310,455
Arbitrage Liability
189,980
29,267
—
219,247
—
Claims payable
23,813,895
32,454,858
(33,243,458)
23,025,295
15,331,445
Subscription based IT liability
4,579,664
508,116
(2,333,443)
2,754,337
2,390,301
Net pension liability
199,488,891
—
(74,054,596) 125,434,295
—
OPEB liability
68,499,616
3,623,188
—
72,122,804
—
Totals
$ 583,292,417
$ 42,363,430
$ (146,068,865) $ 479,586,982
$ 66,063,633
Balance
Balance
Due Within
Business-Type Activities:
June 30, 2024
Additions
Reductions
June 30, 2025
One Year
Compensated absences
$
1,555,830
$
841,651
$
—
$
2,397,481
$
969,577
Notes payable
—
5,000,000
—
5,000,000
—
Bonds & obligations payable:
General obligation bonds
49,480,841
—
(9,543,064)
39,937,777
9,979,977
Excise tax revenue obligations
250,405,000
—
(9,410,000) 240,995,000
15,025,000
Issuance premiums
19,965,864
—
(2,680,498)
17,285,366
2,680,498
Total bonds & obligations
payable
319,851,705
—
(21,633,562) 298,218,143
27,685,475
Net pension liability
19,344,718
1,330,653
—
20,675,371
—
OPEB liability
8,553,638
478,839
—
9,032,477
—
Landfill closure/post closure
4,340,000
—
—
4,340,000
94,446
Totals
$ 353,645,891
$
7,651,143
$ (21,633,562) $ 339,663,472
$ 28,749,498
Compensated Absences
The city’s policy relating to compensated absences is described in Note 1. The long-term portion of this debt
is expected to be paid in future years from future resources.
CITY OF CHANDLER, ARIZONA
Notes to the Financial Statements
June 30, 2025
65
NOTE 5 - Long-Term Liabilities, continued
Statutory Debt Limitation
In the absence of more restrictive bond authorization ballot limitations, the city is subject to state limitations
on the amount of net bonded debt (exclusive of revenue bonds, excise tax revenue obligations, and
improvement district bonds) it may have outstanding. The statutory debt limitation is 20 percent of the full
cash property assessed valuation for purposes of water, wastewater, artificial light, acquisition and
development of land for open space preserves, recreation facilities, public safety and emergency services,
streets and transportation and 6 percent of the full cash property assessed valuation for all other purposes
(e.g., library, museum, center for the arts). At June 30, 2025, the 6 percent debt limitation was $418,149,492,
providing a debt margin of $410,133,238 and the 20 percent debt limitation was $1,393,831,641, providing a
debt margin of $1,130,002,918.
Conduit Debt
To further economic development in the city, the Industrial Development Authority has issued bonds that
meet the definition of a conduit debt obligation. Those bonds have provided private-sector entities with
access to capital for the acquisition and construction of industrial and commercial facilities. The bonds are
secured by the property they finance and are payable solely from payments received from the private-
sector entities on the underlying mortgage or promissory notes. The Industrial Development Authority has
not extended any additional commitments for the debt service payments of the bonds beyond the collateral
and the payments from the private-sector entities on the underlying mortgage or promissory notes and
maintenance of the tax-exempt status of the conduit debt obligation. At June 30, 2025, the bonds have an
aggregate outstanding principal amount payable of $1,295,220,000, none of which was recognized as a
liability by the Industrial Development Authority.
Bond Covenants
Pursuant to certain bond indenture agreements, the city is obligated to various limitations and restrictions
on annual debt service requirements, maintenance and flow of monies through various restricted accounts,
minimum amounts to be maintained in various sinking funds, and minimum revenue bond coverages. The
city is in compliance with all such significant limitations and restrictions in the opinion of the city’s
management.
Arbitrage
Arbitrage is the ability to obtain tax-exempt bond proceeds and invest the funds in higher yielding taxable
securities, resulting in a profit. The city monitors compliance with federal arbitrage regulations. Arbitrage
liability as of June 30, 2025 is $219,247.
CITY OF CHANDLER, ARIZONA
Notes to the Financial Statements
June 30, 2025
66
NOTE 5 - Long-Term Liabilities, concluded
Debt Service Requirements to Maturity
The following is a summary of debt service requirements to maturity for all bonds payable as of June 30,
2025:
GOVERNMENTAL ACTIVITIES
Years
General
General
Ended
Obligation
Obligation
June 30
Principal
Interest
Total
2026
$ 37,975,023
$
7,834,637
$ 45,809,660
2027
34,363,420
6,432,348
40,795,768
2028
27,237,390
5,197,053
32,434,443
2029
29,381,390
4,110,547
33,491,937
2030
14,675,000
3,365,923
18,040,923
2031-2035
70,150,000
7,209,363
77,359,363
2036
2,125,000
26,563
2,151,563
Total
$ 215,907,223
$ 34,176,434
$ 250,083,657
BUSINESS-TYPE ACTIVITIES
Years
General
General
Ended
Obligation
Obligation
Excise Tax
Excise Tax
June 30
Principal
Interest
Principal
Interest
Total
2026
$
9,979,977
$
986,281
$ 15,025,000
$
8,052,900
$ 34,044,158
2027
10,096,580
986,281
16,910,000
7,491,434
35,484,295
2028
8,737,610
890,753
16,120,000
6,906,332
32,654,695
2029
11,123,610
584,115
21,620,000
6,193,132
39,520,857
2030
21,810,000
5,466,169
27,276,169
2031-2035
—
—
89,375,000
15,442,120
104,817,120
2036-2039
—
—
60,135,000
5,950,713
66,085,713
Total
$ 39,937,777
$
3,447,430
$ 240,995,000
$ 55,502,800
$ 339,883,007
NOTE 6 - Defeased Debt
In prior years, the city defeased certain general obligation bonds and certain excise tax obligations by
placing the proceeds of new bonds and obligations in an irrevocable trust to provide for all future debt
service payments on the old bonds or obligations. Bonds and obligations that were advance refunded
(defeased) had a final redemption of 7/1/24.
CITY OF CHANDLER, ARIZONA
Notes to the Financial Statements
June 30, 2025
67
NOTE 7 - Landfill Closure and Postclosure Costs
State and federal laws and regulations require the city to place a final cover on its landfill site when it stops
accepting waste and to perform certain maintenance and monitoring functions at the site for thirty years
after closure. In addition to operating expenses related to landfill activities through its closure date (October
1, 2005), an expense provision and related liability has been recognized based on the future closure and
postclosure care costs to be incurred near or after the date the landfill no longer accepts waste. The
recognition of these landfill closure and postclosure care costs is based on the amount of the landfill used
during the year. As of June 30, 2025, the city estimates total costs related to landfill closure and postclosure
care is $17,302,007 and has recognized that entire amount since the landfill no longer accepts waste. To
date, $12,962,007 has been paid. The remaining balance of $4,340,000 consists of a current liability of
$94,446 and $4,245,554 recorded as a long-term liability on the city’s financial statements.
The estimated total current cost of the landfill closure and postclosure, $17,302,007 is based on the amount
that would be paid if all equipment, facilities and services required to care, monitor and maintain the landfill
were acquired as of June 30, 2025. However, the actual cost of closure and postclosure care may differ due
to inflation, deflation, changes in technology or changes in landfill laws and regulations. The city is required
by state and federal regulations to comply with local government financial test requirements that assure the
city can meet the costs of landfill closure, postclosure care and, if necessary, corrective action when needed.
The city complied with all local government financial test requirements for the year ended June 30, 2024. It is
anticipated that future inflation costs will be financed in part from earnings on investments. The remaining
portion of anticipated future inflation costs and any additional costs that might arise from changes in
postclosure requirements, i.e., due to changes in technology or more rigorous environmental regulations,
may need to be covered by additional charges to future taxpayers.
NOTE 8 - Capital Contributions
Capital contributions in the Water, Wastewater, and, Airport funds are the result of system development
fees, developer contributions and government contributions. Total capital contributions amounted to the
following:
System
Development
Developer
Government
Fees
Contributions
Contributions
Total
Water
$
2,366,246 $
414,711 $
— $
2,780,957
Wastewater
3,664,579
10,628,679
—
14,293,258
Airport
—
—
177,958
177,958
Total
$
6,030,825 $
11,043,390 $
177,958 $ 17,252,173
CITY OF CHANDLER, ARIZONA
Notes to the Financial Statements
June 30, 2025
68
NOTE 9 - Fund Balance
In the fund financial statements, fund balances are reported in five classifications that comprise a hierarchy
based on spending constraints placed on the purposes for which resources can be used for better
consistency and clarification. The classifications of fund balance are explained below:
Nonspendable fund balance includes amounts that cannot be spent because either 1) it is not in a
spendable form, such as inventory or prepaid items or 2) it is legally or contractually required to be
maintained intact.
Restricted fund balance includes amounts constrained to specific purposes by their providers which are
either imposed 1) by external parties (grantors, bondholders, and higher levels of government), 2) by law
through constitutional provisions or 3) by enabling legislation legally enforceable by external parties.
Committed fund balance includes amounts with self-imposed limitations to be used only for a specific
purpose pursuant to constraints by formal action of the highest level of decision making authority, namely
Mayor and Council. Mayor and Council approval is required to commit resources and amounts cannot be
used for any other purpose unless Mayor and Council take the same formal action to remove or change the
commitment.
Assigned fund balance includes amounts intended to be used for a specific purpose. For the general fund,
the assigned fund balance must be for a specific purpose and for all other governmental funds the assigned
fund balance represents the residual balance of the fund. Fund balance assignments are approved through
the Annual Budget Fund Policies section by Mayor and Council. Unlike committed fund balances, assigned
fund balance amounts can be changed without formal action by the City Manager.
Unassigned fund balance includes amounts available for any purpose; these amounts are reported only in
the general fund. In addition, other governmental funds that result in a negative fund balance are presented
in this classification. Generally, the city would first apply restricted resources, then committed, assigned and
unassigned resources when an expense is incurred for purposes for which more than one classification of
fund balance is available.
CITY OF CHANDLER, ARIZONA
Notes to the Financial Statements
June 30, 2025
69
NOTE 9 - Fund Balance, concluded
As of June 30, 2025 the constraints placed on fund balance for the major governmental funds and other
non-major governmental funds are presented in the following table:
General
Obligation
Other
Bonds Debt
Governmental
General
Service
Funds
Total
Nonspendable:
Inventories
$
1,028,477
$
—
$
—
$
1,028,477
Total nonspendable
1,028,477
—
—
1,028,477
Restricted for:
Court enhancement
447,599
—
—
447,599
Judicial enhancement
683,845
—
—
683,845
Weapons proceeds
108,720
—
—
108,720
Citing agency
97,941
—
4,358
102,299
Opioid Settlement Funds
2,002,283
—
—
2,002,283
Smart and Safe AZ
3,717,659
—
—
3,717,659
Transportation and development
—
—
125,751,938
125,751,938
Debt service reserve
—
1,858,177
—
1,858,177
Community development
—
—
347,108
347,108
Community services
—
—
46,670,556
46,670,556
OPEB asset
4,534,794
—
—
4,534,794
Other capital projects
—
—
23,014,987
23,014,987
Total restricted
11,592,841
1,858,177
195,788,947
209,239,965
Assigned to:
Domestic violence prevention
390,650
—
—
390,650
Traffic safety reserve
1,144,180
—
—
1,144,180
PSPRS contribution
25,000,000
—
—
25,000,000
Capital improvement projects
212,156,459
—
—
212,156,459
Economic development projects
13,700,500
—
—
13,700,500
ARPA related projects
4,169,279
—
—
4,169,279
Total assigned
256,561,068
—
—
256,561,068
Unassigned
92,173,979
—
(15,918,864)
76,255,115
Total unassigned
92,173,979
—
(15,918,864)
76,255,115
Total fund balances
$
361,356,365
$
1,858,177
$
179,870,083
$
543,084,625
The city’s General Fund Reserve Policy requires an amount equal to 15 percent of adopted General Fund
operating revenues, excluding one-time transfers in, for fiscal year 2024-25. This amounts to $55,999,600
and is included in unassigned above.
CITY OF CHANDLER, ARIZONA
Notes to the Financial Statements
June 30, 2025
70
NOTE 10 - Retirement and Pension Plans
The city contributes to the pension plans described below. The city’s share of the Arizona State Retirement
System Health Benefit Supplement (HBS) Other Postemployment Benefit (OPEB) is recorded in the financial
statements and included in the aggregate disclosure below; however, the plan is not presented further in
the note disclosures or required supplementary information due to the relative insignificance to the
financial statements. Additionally, the city contributes to the Elected Officials Retirement Plan and non-city
Other Post Employment Benefit (OPEB) plans; however the plans are not described further because of the
relative insignificance to the financial statements. The plans described in this note are component units of
the State of Arizona.
At June 30, 2025, the city reported the following aggregate amounts related to pensions and other
postemployment benefits (OPEB) for all plans to which it contributes.
Pensions Plans
Governmental
Business-type
Activities
Activities
Total
Net pension liability
$ 125,434,295 $
20,675,371 $ 146,109,666
Pension deferred outflows of resources
98,822,224
4,752,438
103,574,662
Pension deferred inflows of resources
19,482,321
1,767,976
21,250,297
Pension expense
26,433,996
5,802,584
32,236,580
OPEB Plans
Governmental
Business-type
Activities
Activities
Total
Net OPEB asset
$
4,534,794 $
— $
4,534,794
Net OPEB liability
72,122,804
9,032,477
81,155,281
OPEB deferred outflows of resources
13,544,161
1,737,765
15,281,926
OPEB deferred inflows of resources
9,911,748
958,022
10,869,770
OPEB expense
5,982,673
880,364
6,863,037
The city reported $36,840,274 and $2,346,974 of pension/OPEB expenditures in its governmental and
enterprise funds, respectively, related to all pension/OPEB plans to which it contributed in the current fiscal
year.
Arizona State Retirement System
A.
Plan Description
The city employees not covered by the other pension plans described after this section participate in the
Arizona State Retirement System (ASRS). The ASRS administers a cost-sharing multiple-employer defined
benefit pension plan, a cost-sharing multiple-employer defined benefit health insurance premium benefit
(OPEB) plan and a cost-sharing multiple-employer defined benefit long-term disability (OPEB) plan. For
governmental activities OPEB and pension liabilities are generally liquidated by the general fund. The
Arizona State Retirement System Board governs the ASRS according to the provisions of A.R.S. Title 38,
Chapter 5, Articles 2 and 2.1. The ASRS issues a publicly available financial report that includes its financial
statements and required supplementary information. The report is available on the ASRS website at
www.azasrs.gov.
CITY OF CHANDLER, ARIZONA
Notes to the Financial Statements
June 30, 2025
71
NOTE 10 - Retirement and Pension Plans, continued
B.
Benefits Provided
The ASRS provides retirement, health insurance premium supplement, long-term disability, and survivor
benefits. State statute establishes benefit terms. Retirement benefits are calculated on the basis of age,
average monthly compensation, and service credit as follows:
Retirement Initial Membership Date:
Before July 1, 2011
On or After July 1, 2011
Years of service and age
Sum of years and age equals 80
30 years, age 55
required to receive benefit
10 years, age 62
25 years, age 60
5 years, age 50*
10 years, age 62
Any years, age 65
5 years, age 50*
Any years, age 65
Final average salary is based on
Highest 36 months of last 120
Highest 60 months of last 120
months
months
Benefit percent per year of
2.1% to 2.3%
2.1% to 2.3%
service
*With actuarially reduced benefits
Retirement benefits for members who joined the ASRS prior to September 13, 2013, are subject to
automatic cost-of-living adjustments based on excess investment earnings. Members with a membership
date on or after September 13, 2013, are not eligible for cost-of-living adjustments. Survivor benefits are
payable upon a members’ death. For retired members, the survivor benefit is determined by the retirement
benefit option chosen. For all other members, the beneficiary is entitled to the member’s account balance
that includes the member’s contributions and employer’s contributions, plus interest earned.
C.
Contributions
In accordance with state statutes, annual actuarial valuations determine active member and employer
contribution requirements. The combined active member and employer contribution rates are expected to
finance the costs of benefits employees earn during the year, with an additional amount to finance any
unfunded accrued liability. For the current fiscal year, active ASRS members were required by statute to
contribute at the actuarially determined rate of 12.27 percent (12.12 percent for retirement and 0.15
percent for long-term disability) of the members’ annual covered payroll, and the City of Chandler was
required by statute to contribute at the actuarially determined rate of 12.27 percent (12.05 percent for
retirement, 0.07 percent for health insurance premium benefit, and 0.15 percent for long-term disability) of
the active members’ annual covered payroll.
In addition, the city was required by statute to contribute at the actuarially determined rate of 10.19 percent
(10.14 percent for retirement and .05 percent for long term disability) of annual covered payroll of retired
members who worked in positions that would typically be filled by an employee who contributes to the
ASRS.
The required contribution rate for the fiscal year ended June 30, 2025, was actuarially determined to yield
contribution amounts sufficient to finance costs earned by employees during the year and to amortize the
Plan’s unfunded actuarially accrued liability over the period specified in the statutes. The city’s contributions
for the year ended June 30, 2025, were $13,038,746. The city’s pension contributions are paid by the same
funds as the employee’s salary, with the largest component coming from the general fund.
CITY OF CHANDLER, ARIZONA
Notes to the Financial Statements
June 30, 2025
72
NOTE 10 - Retirement and Pension Plans, continued
D. Pension Liability
At June 30, 2025, the city reported a liability of $117,777,479 for its proportionate share of the net pension
liability of the ASRS. The net pension liability was measured as of June 30, 2024. The total pension liability
used to calculate the net pension liability was determined using update procedures to roll forward the total
pension liability from an actuarial valuation as of June 30, 2023, to the measurement date of June 30, 2024.
The city’s proportion of the net pension liability was based on a projection of the city’s long-term share of
contributions to the pension plan relative to the projected contributions of all participating employers,
actuarially determined. At June 30, 2024 the city’s proportion was 0.74 percent, which was an increase of .06
from its proportion measured as of June 30, 2023.
E.
Pension Expense and Deferred Outflows/Inflows of Resources
For the year ended June 30, 2025, the city recognized pension expense for ASRS of $11,618,436 and
reported deferred outflows of resources and deferred inflows of resources related to pensions from the
following sources:
Deferred Outflows
of Resources
Deferred Inflows
of Resources
Differences between expected and actual experience
$
6,574,229 $
—
Net difference between projected and actual earnings
on pension plan investments
—
7,521,381
Changes in proportion and differences between
contributions and proportionate share of contributions
6,107,666
—
Contributions subsequent to the measurement date
13,038,746
—
Total
$
25,720,641 $
7,521,381
The deferred outflows of resources related to ASRS pensions resulting from contributions subsequent to the
measurement date as reported in the table above will be recognized as a reduction of the net pension
liability in the year ended June 30, 2026. Other amounts reported as deferred outflows of resources and
deferred inflows of resources related to ASRS pensions will be recognized in pension expense as follows:
Year Ending June 30:
2025
$
(50,931)
2026
8,495,616
2027
(1,903,909)
2028
(1,380,262)
CITY OF CHANDLER, ARIZONA
Notes to the Financial Statements
June 30, 2025
73
NOTE 10 - Retirement and Pension Plans, continued
F.
Actuarial Assumptions
The significant actuarial assumptions used to measure the total ASRS pension liability are as follows:
Actuarial valuation date
June 30, 2023
Actuarial roll forward date
June 30, 2024
Actuarial cost method
Entry age normal
Discount rate
7%
Projected salary increases
2.9%-8.4%
Inflation
2.3%
Permanent base increases
Included
Mortality rates
2017 SRA Scale U-MP
The actuarial assumptions used in the June 30, 2023 valuation were based on the results of an actuarial
experience study for the five-year period ended June 30, 2020. The purpose of the experience study was to
review actual experience in relation to the actuarial assumptions in effect. The ASRS Board adopted the
experience study recommended changes which were applied to the June 30, 2021, actuarial valuation. The
study did not include an analysis of the assumed investment rate of return.
The long-term expected rate of return on ASRS pension plan investments using a building-block method in
which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan
investment expense and inflation) are developed for each major asset class. These ranges are combined to
produce the long-term expected rate of return by weighting the expected future real rates of return by the
target asset allocation percentage and by adding expected inflation.
The target allocation and best estimates of geometric real rates of return for each major asset class of the
ASRS are summarized in the following table:
Asset Class
Target
Allocation
Real Rate of
Return
Equity
44%
4.48%
Fixed Income - Credit
23%
4.40%
Fixed Income - Interest Rate Sensitive
6%
(0.45)%
Private Equity
10%
6.11%
Real estate
17%
6.05%
Total
100%
G. Discount Rate
The discount rate used to measure the ASRS total pension liability was 7.0 percent, which remained the
same when compared to the rated used for June 30, 2023. The projection of cash flows used to determine
the discount rate assumed that contributions from participating employers will be made based on the
actuarially determined rates based on the ASRS Board’s funding policy, which establishes the contractually
required rate under Arizona statute. Based on those assumptions, the pension plan’s fiduciary net position
was projected to be available to make all projected future benefit payments of current plan members.
Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of
projected benefit payments to determine the total pension liability.
CITY OF CHANDLER, ARIZONA
Notes to the Financial Statements
June 30, 2025
74
NOTE 10 - Retirement and Pension Plans, continued
H. Sensitivity of the Proportionate Share of the Net Pension Liability to Changes in the Discount
Rate
The following presents the city’s proportionate share of the net pension liability calculated using the
discount rate of 7 percent, as well as what the proportionate share of the net pension liability would be if it
were calculated using a discount rate that is 1 percentage point lower or 1 percentage point higher than the
current rate:
1% Decrease
(6.0%)
Current
Discount
Rate (7.0%)
1% Increase
(8.0%)
City's proportionate share of the net pension liability
$ 180,341,404 $ 117,777,479 $ 65,635,910
I.
Pension Plan Fiduciary Net Position
Detailed information about the pension plan’s fiduciary net position is available in the separately issued
ASRS financial report. The report is available on the ASRS website at www.azasrs.gov.
Public Safety Personnel Retirement System
A.
Plan Description
City public safety employees who are regularly assigned hazardous duty participate in the Public Safety
Personnel Retirement System (PSPRS). The PSPRS administers an agent multiple-employer defined benefit
pension plan and an agent multiple-employer defined benefit health insurance premium benefit (OPEB)
plan. For governmental activities OPEB and pension liabilities are generally liquidated by the general fund. A
seven-member board known as the Board of Trustees and the participating local boards govern the PSPRS
according to the provisions of A.R.S. Title 38, Chapter 5, Article 4.
The PSPRS issues a publicly available financial report that includes their financial statements and required
supplementary information. The report is available on the PSPRS website at www.psprs.com.
B.
Benefits Provided
The PSPRS provides retirement, health insurance premium supplement, disability and survivor benefits.
State statute establishes benefits terms. Certain retirement and disability benefits are calculated on the
basis of age, average monthly compensation and service credit in the table on the following page. See the
publicly available PSPRS financial report for additional benefits information.
CITY OF CHANDLER, ARIZONA
Notes to the Financial Statements
June 30, 2025
75
NOTE 10 - Retirement and Pension Plans, continued
Retirement Initial Membership Date:
Before January 1, 2012
On or After January 1, 2012
On or After July 1, 2017
Years of service and age
20 years, any age
15 years and age 52.5
15 years and age 55
required to receive benefit
15 years age 62
Final average salary is
Highest 36 months of
Highest 60 months of last
Highest 60 months of
based on
last 20 years
20 years
last 15 years
Normal retirement
50% less 4.0% for each year
1.5% to 2.5% per year of
1.5% to 2.5% per year of
of credited service less than
credited service, not to
credited service, not to
20 years or plus 2.0% to
exceed 80%
exceed 80%
2.5% for each year of
credited service over 20
years, not to exceed 80%
Accidental disability retirement
50% or normal retirement, whichever is greater
Survivor benefit:
Retired members
80% of retired member’s pension benefit
Active members
80% to 100% of accidental disability retirement benefit or 100% of average
monthly compensation if death was the result of injuries received on the job
Retirement and survivor benefits are subject to automatic cost-of-living adjustments based on excess
investment earnings. The PSPRS also provides temporary disability benefits of 50 percent of the member's
compensation for up to 12 months.
C.
Employees Covered by Benefit Terms
At June 30, 2025, the following employees were covered by the agent pension plan’s benefit terms:
PSPRS - Police
PSPRS - Fire
Inactive employees or beneficiaries
currently receiving benefits
243
113
Inactive employees entitled to but not
yet receiving benefits
90
39
Active employees
286
209
Total
619
361
CITY OF CHANDLER, ARIZONA
Notes to the Financial Statements
June 30, 2025
76
NOTE 10 - Retirement and Pension Plans, continued
D. Contributions
State statutes establish the pension contribution requirements for active PSPRS employees. In accordance
with state statutes, annual actuarial valuations determine employer contribution requirements for PSPRS
pension benefits. The combined active member and employer contribution rates are expected to finance
the cost of benefits employees earn during the year, with an additional amount to finance any unfunded
accrued liability. Contributions rates for the year ended June 30, 2025, are indicated below. Rates are a
percentage of active members’ annual covered payroll.
PSPRS - Police
PSPRS - Fire
Active members - pension
Tier 1
7.65 %
7.65 %
Tier 2
7.65 %
7.65 %
Tier 3 DB
8.48 %
8.82 %
Tier 3 DC
9.00 %
9.00 %
Employer rates - pension
Tier 1
36.35 %
32.38 %
Tier 2
36.35 %
32.38 %
Tier 3 DB
31.42 %
24.53 %
Tier 3 DC
33.35 %
26.05 %
In addition, the city was required by statute to contribute at the actuarially determined rate of 22.62 percent
for police and 15.32 percent for fire for the PSPRS of annual covered payroll of retired members who
worked in positions that would typically be filled by an employee who contributes to the PSPRS.
For the agent plans, the contributions to the pension plan for the year ended were:
PSPRS - Police
PSPRS - Fire
Pension:
Contributions made
$
17,459,828 $
8,688,676
E.
Pension Liability
At June 30, 2025, the city reported $16,998,760 in net pension liability for police and $11,333,427 in net
pension liability for fire. The net pension liabilities were measured as of June 30, 2024, and the total pension
liability used to calculate the net pension liability was determined by an actuarial valuation as of that date.
The total pension liability as of June 30, 2024 reflects changes of benefit terms and actuarial assumptions
from a court ruling for funding permanent benefit increases and a decrease in the wage growth assumption.
CITY OF CHANDLER, ARIZONA
Notes to the Financial Statements
June 30, 2025
77
NOTE 10 - Retirement and Pension Plans, continued
F.
Actuarial Assumptions
The significant actuarial assumptions used to measure the total pension liability are as follows:
Actuarial valuation date
June 30, 2024
Actuarial cost method
Entry age normal
Investment rate of return Tier 1/2
7-Year smoothed market, subject to
20% corridor around market value
Tier 1 & 2
Investment rate of return Tier 3
5-year smoothed market, 20%
corridor around market for Tier 3
Price inflation
7.2 Tier 1& 2
Wage inflation
7.0 Tier 3
Projected salary increases
3.25-12.00% varies based on age.
Rates based pm 2022 experience
study
Including inflation
2.5
Cost of living adjustment
Included 1.85%
Mortality rates
PubS-2010 Mortality Tables
The long-term expected rate of return on PSPRS pension plan investments was determined to be 7.20
percent for Tiers 1 and 2 and 7.0 percent for Tier 3 using a building-block method in which best-estimate
ranges of expected future real rates of return (expected returns, net of pension plan investment expenses
and inflation) are developed for each major asset class. The target allocation and best estimates of
geometric real rates of return for each major asset class are summarized in the following table:
Long-Term
Target
Expected Real
Asset Class
Allocation
Rate of Return
Core Bonds
6%
2.44%
International Public Equity
16%
4.47%
Cash - Mellon
2%
0.89%
Diversifying Strategies
5%
3.15%
Global Private Equity
27%
7.05%
Private Credit
20%
6.24%
U.S. Public Equity
24%
3.62%
Total
100%
G. Pension Discount Rates
The discount rate of 7.20 percent was used to measure the total pension liability for Tier 1 and 2 members
and 7.00 percent for Tier 3 members. The projection of cash flows used to determine the PSPRS discount
rates assumed that plan member contributions will be made at the current contribution rate and that
employer contributions will be made at rates equal to the difference between the actuarially determined
contribution rates and the member rate. Based on those assumptions, the pension plan’s fiduciary net
position was projected to be available to make all projected future benefit payments of current plan
members. Therefore, the long-term expected rate of return on pension plan investments was applied to all
periods of projected benefit payments for these plans to determine the total pension liability.
CITY OF CHANDLER, ARIZONA
Notes to the Financial Statements
June 30, 2025
78
NOTE 10 - Retirement and Pension Plans, continued
Increase/(Decrease)
Total Pension
Plan Fiduciary
Net Pension
Liability
Net Position
Liability
PSPRS - Police
Balances at June 30, 2024
$
378,809,648 $
305,268,786 $
73,540,862
Changes for the year:
Service cost
6,493,314
—
6,493,314
Interest on the total pension liability
27,142,796
—
27,142,796
Differences between expected and actual
experience in the measurement of the
pension liability
14,690,679
—
14,690,679
Contributions - employer
—
64,765,257
(64,765,257)
Contributions - employee
—
3,119,591
(3,119,591)
Net investment income
—
37,120,427
(37,120,427)
Benefit payments, including refunds of
employee contributions
(16,639,362)
(16,639,362)
—
Administrative expense
—
(136,384)
136,384
Other changes
—
—
—
Net changes
31,687,427
88,229,529
(56,542,102)
Balances at June 30, 2025
$
410,497,075 $
393,498,315 $
16,998,760
Increase/(Decrease)
Total Pension
Plan Fiduciary
Net Pension
Liability
Net Position
Liability
PSPRS - Fire
Balances at June 30, 2024
$
227,259,596 $
192,351,812 $
34,907,784
Changes for the year:
Service cost
4,949,074
—
4,949,074
Interest on the total pension liability
16,254,746
—
16,254,746
Changes of benefit terms
11,553,827
—
11,553,827
Contributions - employer
—
31,803,422
(31,803,422)
Contributions - employee
—
2,358,323
(2,358,323)
Net investment income
—
22,248,833
(22,248,833)
employee contributions
(12,896,626)
(12,896,626)
—
Administrative expense
—
(78,574)
78,574
Other changes
—
—
Net changes
19,861,021
43,435,378
(23,574,357)
Balances at June 30, 2025
$
247,120,617 $
235,787,190 $
11,333,427
CITY OF CHANDLER, ARIZONA
Notes to the Financial Statements
June 30, 2025
79
NOTE 10 - Retirement and Pension Plans, continued
H. Sensitivity of the Net Pension Liability to Changes in the Discount Rate
The following presents the city’s net pension liability calculated using the discount rates noted above, as well
as what the net pension liability would be if it were calculated using a discount rate that is 1 percentage
point lower or 1 percentage point higher than the current rate:
Tier 1-2/Tier 3
Current
Tier 1-2/Tier 3
1% Decrease
Discount Rate
1% Increase
PSPRS - Police:
Rate
6.20
7.20
8.20
Net pension liability
$
74,975,664 $
16,998,760 $
29,998,075
PSPRS - Fire:
Rate
6.20
7.20
8.20
Net pension liability
$
45,675,581 $
11,333,427 $
16,749,117
I.
Pension Plan Fiduciary Net Position
Detailed information about the pension plan’s fiduciary net position is available in the separately issued
PSPRS financial report. The report is available on the PSPRS website at www.psprs.com.
J.
Pension Expense
For the year ended June 30, 2025, the city recognized the following as pension expense:
Pension
Expense
PSPRS - Police
$
13,735,324
PSPRS - Fire
6,274,439
CITY OF CHANDLER, ARIZONA
Notes to the Financial Statements
June 30, 2025
80
NOTE 10 - Retirement and Pension Plans, concluded
K.
Pension Deferred Outflows/Inflows of Resources
At June 30, 2025, the city reported deferred outflows of resources and deferred inflows of resources related
to pensions from the following sources:
Deferred
Deferred
Outflows of
Inflows of
PSPRS - Police
Resources
Resources
Differences between expected and actual experience
$
28,930,348 $
—
Changes of assumptions or other inputs
2,720,229
—
Net difference between projected and actual earnings
on pension plan investments
—
8,879,462
Contributions subsequent to the measurement date
17,459,828
—
Total
$
49,110,405 $
8,879,462
Deferred
Deferred
Outflows of
Inflows of
PSPRS - Fire
Resources
Resources
Differences between expected and actual experience
$
18,414,529 $
42,920
Changes of assumptions or other inputs
1,640,413
—
Net difference between projected and actual earnings
on pension plan investments
—
4,806,535
Contributions subsequent to the measurement date
8,688,676
—
Total
$
28,743,618 $
4,849,455
The amounts reported as deferred outflows of resources related to pension are resulting from contributions
made subsequent to the measurement date but before the end of the city's fiscal year and will be
recognized as a reduction of the net pension liability in the subsequent year ended June 30, 2026. Other
amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions
will be recognized in pension expense as follows:
Year Ending June 30:
PSPRS - Police
PSPRS - Fire
2026 $
4,955,743 $
514,541
2027
9,678,133
5,581,970
2028
3,246,215
1,497,001
2029
2,442,577
1,111,540
2030
2,488,447
2,638,897
Thereafter
—
3,861,538
CITY OF CHANDLER, ARIZONA
Notes to the Financial Statements
June 30, 2025
81
NOTE 11 - Post-Employment Benefits Other Than Pensions - Single Employer Plan
The cost of postemployment healthcare benefits, from an accrual accounting perspective, should be
associated with the periods in which the future costs are earned rather than in the future years when they
will be paid (similar to the cost of pension benefits). GASB Statement No. 75, Accounting and Financial
Reporting for Postemployment Benefits Other Than Pensions requires the city to recognize the entire OPEB
liability and a comprehensive measure of OPEB expense. The comprehensive measure of OPEB expense
includes immediate recognition in OPEB expense of the effects of changes of benefit terms, as well as the
incorporation of the amortization of deferred inflows of resources and deferred outflows of resources
related to OPEB over a defined, closed period.
A.
Plan Description
The city provides post-employment health care (OPEB) for retired employees through a single employer
defined benefit health plan. The plan provides health benefits for eligible retirees, their spouses and
dependents though the city’s group health insurance plans, which covers active and retired members. The
benefits, benefit levels, and contribution rates are determined annually by the city’s Human Resources
Department and approved by the City Council. The plan is not accounted for as a trust fund, as an
irrevocable trust has not been established to account for the plan and no assets are accumulated. The plan
does not issue a separate financial report. Generally, resources from the general fund are used to pay for
post-employment benefits.
The city also provides a Retirement Health Savings Plan (RHSP) for active employees that may be used upon
separation from city employment. The city funds $15, $25, or $40 per pay period for Fire, General, and Police
Department employees, respectively, during the term of employment. The plan provides health expense
reimbursements eligible under Internal Revenue Code Section 213, other than direct long-term care
expenses. The plan is not accounted for as a trust fund, as an irrevocable trust has not been established to
account for the plan. The plan does not issue a separate financial report. Generally, resources from the
general fund are used to pay for post-employment benefits.
B.
Benefits Provided
The city provides post-employment health care benefits to its retirees. To be eligible for benefits, an
employee must qualify for retirement under one of the state retirement plans for public employees and be
covered under the city’s health plan during their active status.
Upon retirement, the city deposits a one-time payment of $900-$1,750 per year of city service in the retiree’s
RHSP account. The retiree must have a minimum of five years of city service to receive this contribution.
C.
Contributions
The plan premium rates are determined annually by the city’s Human Resources Department in
collaboration with an outside consulting firm, reviewed, and recommended by a five member Health Care
Benefits Trust Board, and approved by the City Council. The retiree’s contribution is 100 percent of the
actuarially determined blended premium rate. The city makes no contribution to the retirees’ premiums
other than allowing them to participate through the city’s pooled benefits. By providing retirees with access
to the city’s healthcare plans based on the same rates it charges to active employees, the city is in effect
providing a subsidy to retirees. This implied subsidy exists because, on average, retiree healthcare costs are
higher than active employee healthcare costs. The city contributes 0 percent of these premiums for
employees. By not contributing anything toward this plan in advance, the city employs a pay-as-you-go
method through paying the higher rate for active employees each year. A separate financial report is not
issued for the plan.
CITY OF CHANDLER, ARIZONA
Notes to the Financial Statements
June 30, 2025
82
NOTE 11 - Post-Employment Benefits Other Than Pensions - Single Employer Plan, continued
D. Employees Covered by Benefit Terms
The following employees were covered as of the effective date of the OPEB valuation:
Inactive employees or beneficiaries
currently receiving benefits
797
Active members
1,717
Total
2,514
E.
Total OPEB Liability
The city’s total OPEB liability of $81,155,281 was measured as of June 30, 2024 and was determined by an
actuarial valuation as of that date.
F.
Actuarial Assumptions and Other Inputs
Projections of benefits for financial reporting purposes are based on the substantive plan (the plan as
understood by the employer and the plan members) and include the types of benefits provided at the time
of each valuation and the historical pattern of sharing of benefit cost between the employer and plan
members to that point. The total OPEB liability in the June 30, 2024 actuarial valuation was determined using
the following actuarial assumptions and other inputs, applied to all periods included in the measurement,
unless otherwise specified:
Measurement date
June 30, 2024
Actuarial valuation date
June 30, 2023
Discount rate
3.93%
Inflation rate
2.3% - 2.5%
Projected salary increases
Vary depending on retirement plan and
years of service from 2.9% - 8.4%
Health care cost trend rates
8% graded down to
an ultimate rate of 4.5% over 14 years
Medical and prescription drug
Consistent with medical/drug trends.
Retiree contribution increase
100% share of benefit related costs
The discount rate is based on the index rate for a 20 year tax exempt general obligation municipal bond
with an average rating of AA/Aa or higher.
Mortality rates were based on the 2017 State Retirees of Arizona Mortality Table for current retirees and the
PubS-2010 Headcount Weighted for disabled retirees.
CITY OF CHANDLER, ARIZONA
Notes to the Financial Statements
June 30, 2025
83
NOTE 11 - Post-Employment Benefits Other Than Pensions - Single Employer Plan, continued
G. Changes in the Total OPEB Liability
Total OPEB liability - beginning of year
$ 77,053,254
Changes for the year:
Service cost
4,216,624
Interest
2,886,733
Changes in assumptions or other inputs
1,400,743
Estimated benefit payments
(4,402,073)
Net changes
4,102,027
Total OPEB liability - end of year
$ 81,155,281
Changes in assumptions reflect the following:
1.
The discount rate increased from 3.65% to 3.93% based on the changes in the Bond Buyer 20 GO
index municipal bond rate from June 29, 2023 to June 27, 2024.
2.
The future trend rates, per capita health costs and retiree contribution rates were updated.
H. Sensitivity of the Total OPEB Liability to Changes in the Discount Rate
The following presents the total OPEB liability of the city, as well as what the city’s total OPEB liability would
be if it were calculated using a discount rate that is 1 percentage point lower or 1 percentage point higher
than the current rate:
1% Decrease
(2.93%)
Current Discount
Rate (3.93%)
1% Increase
(4.93%)
Total OPEB liability
$
91,190,339 $
81,155,281 $
72,835,216
I.
Sensitivity of the Total OPEB Liability to Changes in the Healthcare Cost Trend Rates
The following presents the total OPEB liability of the city, as well as what the city’s total OPEB liability would
be if it were calculated using healthcare cost trend rates that are 1 percentage point lower or 1 percentage
point higher than the current rate:
1% Decrease
(7.00%)
Current
Healthcare Cost
Trend Rates
(8.00%)
1% Increase
(9.00%)
Total OPEB liability
$
76,002,628 $
81,155,281 $
87,204,132
CITY OF CHANDLER, ARIZONA
Notes to the Financial Statements
June 30, 2025
84
NOTE 11 - Post-Employment Benefits Other Than Pensions - Single Employer Plan, concluded
J.
OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to
OPEB
For the year ended June 30, 2025, the city recognized OPEB expense of $7,541,732. At June 30, 2025, the city
reported deferred outflows of resources and deferred inflows of resources related to OPEB from the
following sources:
Deferred
Outflows of
Resources
Deferred Inflows
of Resources
Differences between expected and actual experience
$
863,545 $
1,425,973
Changes of assumptions or other inputs
10,323,296
7,828,951
Contributions subsequent to measurement date
3,864,296
—
Total
$
15,051,137 $
9,254,924
The deferred outflows of resources resulting from contributions subsequent to the measurement date as
reported in the previous table will be recognized as a reduction of the net OPEB liability in the year ended
June 30, 2026. Other amounts reported as deferred outflows of resources and deferred inflows of resources
related to OPEB will be recognized in OPEB expense as follows:
Year Ending June 30:
2026
$
1,731,244
2027
1,466,085
2028
(1,074,868)
2029
(438,790)
2030
211,861
Thereafter
36,385
NOTE 12 - Commitments and Contingencies
The city is subject to a number of lawsuits, investigations, and other claims (some of which involve alleged
damages in substantial amounts) that are incidental to the ordinary course of its operations, including those
related to property damage and personal injury matters as well as alleged civil rights violations. All cases are
being vigorously defended by the City of Chandler both as to liability as well as the amount of damages
claimed. Although the City Attorney cannot reasonably estimate the actual results upon disposition of the
outstanding cases, some could be significant to the city’s operations, which is why the city not only self-
insures with a $1,750,000 liability retention, but carries an additional $30,000,000 in liability insurance
policies which are in excess of its self-insured retention. While the ultimate resolution of such lawsuits,
investigations and claims cannot be determined at this time, in the opinion of city management (based on
the advice of the City Attorney), the resolution of these matters will not have a material adverse effect on the
city’s financial position.
CITY OF CHANDLER, ARIZONA
Notes to the Financial Statements
June 30, 2025
85
NOTE 13 - Risk Management
The city is exposed to various risks of loss related to litigation, claims and torts; theft of, damage to and
destruction of assets; errors and omissions; employee health claims; and natural disasters (for which the
city carries commercial insurance). The city established a Self-Insurance Fund (an Internal Service Fund) to
account for and finance its uninsured risks of loss. This fund is broken down into the following areas:
workers’ compensation insurance, property and liability insurance, health insurance, dental insurance and
short-term disability insurance.
Premiums are paid into the Internal Service Fund by all other funds with personnel services for workers’
compensation insurance and by the general fund for property and liability insurance. The premiums are
available to pay claims, fund claim reserves and pay administrative costs of the program. As with any risk
retention program, the city is contingently liable with respect to claims beyond those actuarially projected.
Interfund premiums are used to reduce the amount of claim expenditures reported in the Internal Service
Fund. In the opinion of city management, based on the advice of the City Attorney, the outcome of such
litigation and claims will not have a materially adverse effect on the city’s financial position.
In fiscal year 2024-25, the Self-Insurance Fund provided coverage for up to a maximum of $100,000 for each
property damage claim and $1,750,000 per occurrence for general liability claims. Coverage is also provided
for claims up to $3,000,000 in Public Safety and up to $1,500,000 in all other classifications of workers’
compensation. The city purchases commercial insurance for claims in excess of coverage provided by the
Self-Insurance Fund and for all other risks of loss. During fiscal year 2024-25, there were no significant
reductions in the amounts of excess coverage purchased, nor has the city experienced any settlements in
excess of insurance coverage over the past three fiscal years.
The city also has commercial stop loss insurance that provides specific (by individual member) coverage for
health insurance claims incurred in excess of $350,000 within the plan year, and aggregate (plan wide)
coverage for health insurance claims incurred above 125 percent of total plan wide claims for the plan year.
Liabilities include an amount for claims that have been incurred but not reported (IBNR). Claim liabilities are
calculated considering the effects of inflation, recent claim settlement trends including frequency and
amount of payouts and other economic and social factors.
The claims liability of $23,025,295 reported as claims payable in the Self-Insurance Fund at June 30, 2025, is
based on the requirements of GASB Statement No. 10, which requires that liabilities be reported when it is
probable that a loss has occurred and the amount of the loss can be reasonably estimated. This includes
known future payments made for insurance as well as estimated IBNR calculations.
CITY OF CHANDLER, ARIZONA
Notes to the Financial Statements
June 30, 2025
86
NOTE 13 - Risk Management, concluded
Changes in the Funds' claims liability amount in fiscal years 2024 and 2025 were:
Current Year
Year
Beginning of
Claims and
Balance at
Ended
Fiscal Year
Changes in
Claim
Fiscal Year
June 30,
Risk of Loss
Balance
Estimates
Payments
End
2024
Workers' compensation
$ 11,115,144 $
2,009,949 $ (1,406,687) $ 11,718,406
Property and liability
2,974,450
2,782,647
(226,805)
5,530,292
Health
5,507,571
26,512,800 (25,642,900)
6,377,471
Dental
174,110
2,142,895
(2,129,279)
187,726
$ 19,771,275 $ 33,448,291 $ (29,405,671) $ 23,813,895
Current Year
Year
Beginning of
Claims and
Balance at
Ended
Fiscal Year
Changes in
Claim
Fiscal Year
June 30,
Risk of Loss
Balance
Estimates
Payments
End
2025
Workers' compensation
$ 11,718,406 $
2,054,542 $ (2,422,186) $ 11,350,762
Property and liability
5,530,292
508,391
(420,753)
5,617,930
Health
6,377,471
27,670,509 (28,188,653)
5,859,327
Dental
187,726
2,221,416
(2,211,866)
197,276
$ 23,813,895 $ 32,454,858 $ (33,243,458) $ 23,025,295
NOTE 14 - Interfund Transfers
Interfund transfers are made from the General Fund and Non-Major Governmental Funds to fund costs
including property and liability insurance, technology replacement and vehicle and equipment replacement,
$19,861,915. The General Fund provides funding for various capital projects, $34,784,659, as well as annual
subsidies for the Airport and Public Housing Authority, $2,361,086. Bond payments totaling $10,521,439 to
General Obligation Bonds Debt Service Fund from Non-Major Governmental Funds for bond repayments.
$1,388,800 from Wastewater Enterprise Fund to Water Enterprise Fund for expenses paid that reclaimed
water programs benefit from and $1,354,699 from Water Enterprise Fund to Wastewater Enterprise Fund
for subsidies from the water fund as a result of a recent cost-of-service study.
CITY OF CHANDLER, ARIZONA
Notes to the Financial Statements
June 30, 2025
87
NOTE 14 - Interfund Transfers, concluded
The interfund transfers in and out at June 30, 2025 are as follows:
Transfers In:
Transfers out:
General
Obligation
Bonds Debt
Service
Fund
Non-Major
Govern-
mental Funds
Water
Enterprise
Fund
Wastewater
Enterprise
Fund
Non-Major
Enterprise
Funds
Internal
Service Fund
Total
General Fund
$
— $ 41,920,690 $
— $
— $ 2,361,086 $ 12,440,000 $ 56,721,776
Non-Major
Governmental
Funds
10,521,439
180,802
—
—
—
105,082
10,807,323
Water
Enterprise Fund
—
411,183
—
1,354,699
—
600,000
2,365,882
Wastewater
Enterprise Fund
—
309,361 1,388,800
—
—
—
1,698,161
Non-Major
Enterprise
Funds
—
152,356
—
—
—
—
152,356
Internal Service
Fund
—
29,608
—
—
—
—
29,608
Total
$ 10,521,439 $ 43,004,000 $ 1,388,800 $ 1,354,699 $ 2,361,086 $ 13,145,082 $ 71,775,106
In addition to the cash transfers, the city had capital contributions from the government-type activities into
the business type activities in the amount of $177,958 (see Note 8).
NOTE 15 - Interfund Receivables and Payables
A.
Interfund Advances To/Advances From
Advances to other funds
Advances from other funds
Total
Governmental funds:
General
Capital projects - public safety buildings and
improvements
$ 3,912,432
Capital projects - public buildings
1,228,401
Total governmental funds
$ 5,140,833
Interfund advances were made from governmental funds to capital projects funds to cover expenditures in
impact fee funds until impact fees are received. $475,000 of the public safety buildings and improvements
capital projects fund advances and $100,000 of the public buildings capital projects fund advance will be
repaid within one year.
CITY OF CHANDLER, ARIZONA
Notes to the Financial Statements
June 30, 2025
88
NOTE 15 - Interfund Receivables and Payables, concluded
B.
Interfund Due To/Due From
Due from other funds
Due to other funds
Total
General
Capital projects - grants
$ 10,092,190
Capital projects - public buildings
603,719
Special revenue - community development
453,569
Total general fund
$ 11,149,478
Interfund balances at June 30, 2025 are short-term loans used to cover temporary cash deficits in various
funds and are expected to be repaid within one year.
NOTE 16 - Joint Venture
The city and the Town of Gilbert entered into an Intergovernmental Agreement (Agreement) for the design,
construction and operation of a Joint Water Treatment Plant. Under the Agreement, the real property, plant
infrastructure and raw water pipelines will be jointly owned with each party entitled to 50 percent of the
plant capacity and each party paying 50 percent of the construction costs. The Town of Gilbert acts as the
Lead Agent, overseeing construction activities and operating the plant. The city’s investment in the joint
venture is reflected as a separate line item in the proprietary funds financial statements. Separate financial
statements for the joint venture are not prepared.
Total investment in joint venture as of June 30, 2025, is:
City of Chandler's Share
$ 55,514,409
Town of Gilbert's Share
61,673,557
$ 117,187,966
NOTE 17 - Deficit in Fund Balances
The general government capital projects fund had a deficit balance of $3,050,422. The grants capital project
fund had a deficit fund balance of $7,353,010. The public buildings fund had a deficit balance of $2,041,593.
The public safety building and improvement capital project fund had a deficit balance of $3,473,839. The
deficit in these funds will be covered by future revenues.
NOTE 18 - Tax Abatements
The city has made commitments as part of our economic development programs to reimburse certain
public improvement costs through transaction privilege taxes generated out of the respective development
area. The total amount rebated in the fiscal year 2024-25 is $349,773. Detailed information on such
commitments is prohibited from disclosure under Arizona Revised Statute 42-2002, Disclosure of
Confidential Information Prohibited, and City of Chandler Code, 62-510 Divulging of Information Prohibited.
In addition, the city enters into property tax abatement agreements under Arizona Revised Statute 42-6201
through 42-6210, Government Property Lease Excise Tax (GPLET) to enhance the economic viability of the
city. The recipients of the GPLET commit to conveying the property to the city upon the project completion
and the city will lease it back to the recipient for an agreed upon amount. State law imposes an excise tax on
buildings that are owned by the city, leased by a private party and occupied/used for commercial, residential
CITY OF CHANDLER, ARIZONA
Notes to the Financial Statements
June 30, 2025
89
NOTE 18 - Tax Abatements, concluded
rental or industrial purposes. The city is allowed to abate the full tax for a period of eight years for both
existing and new projects within redevelopment area that are part of a single central business district. After
the abatement period the projects pay an excise tax in which the city receives a 7 percent distribution.
For the fiscal year ended June 30, 2025, the city abated property taxes totaling $236,632 under this program,
including the following tax abatement agreement that exceeds $100,000:
Property Tax GPLET to a residential rental development for constructing a multi-family residential complex.
The GPLET amounted to $154,248 of property tax abated.
NOTE 19 - Leases
As lessor, the city has entered into lease agreements involving land for wireless towers, airport land and
facilities. The city recognizes lease receivables with an initial, individual value of $100,000 or more. If there is
no stated rate in the lease contract (or if the stated rate is not the rate the city charges the lessee) and the
implicit rate cannot be determined, the city uses its own estimated incremental borrowing rate as the
discount rate to measure lease receivables. The city's estimated incremental borrowing rate is calculated at
2.41%. The total amount of inflows of resources, including lease revenue, interest revenue, and other lease-
related inflows, recognized during the fiscal year was $302,590.
NOTE 20 - Subscription Based IT Arrangements
The city has obtained the right to use various desktop and server software, cloud backup services, risk
management software, budget and accounting reporting software, and other intangible right-to-use
software under the provisions of various subscription-based information technology arrangements (SBITAs).
The total of the city's subscriptions assets are recorded at $8,148,280 less accumulated amortization of
$5,094,648.
The future subscription payments under the SBITA agreements are as follows:
Principal
Interest
Total
2026 $
2,390,301
$
62,039
$
2,452,340
2027
216,895
8,269
225,164
2028
73,501
3,339
76,840
2029
42,829
1,671
44,500
2030
30,810
690
31,500
In addition to the amount presented above, the city had outflows of resources for the fiscal year totaling
$62,369 that were not included in the measurement of the subscription liability.
NOTE 21 - Public Private Partnerships (PPP)
The city as transferor has entered into a public-private partnership agreement to operate a golf course. The
city owns title to the premise and all improvements therein. The city uses its own estimated incremental
borrowing rate as the discount rate to measure PPP receivables. The city's estimated incremental borrowing
rate is calculated at 2.41%. The city received $7,476 in variable payments not included in the measurement
of the receivable that are determined based on the number of rounds of golf. The amount of asset and
deferred inflow of resources recognized during the fiscal year for the PPP were $101,356.
CITY OF CHANDLER, ARIZONA
Notes to the Financial Statements
June 30, 2025
90
REQUIRED SUPPLEMENTARY INFORMATION
91
92
City of Chandler
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
General Fund
For the year ended June 30, 2025
Non-GAAP
Over
Budgeted Amounts
Actual
(Under)
Original
Final
Amounts
Final Budget
REVENUES:
Property taxes
$
8,783,722
$
8,783,722
$
8,760,591
$
(23,131)
Sales taxes
199,208,200
199,208,200
207,605,337
8,397,137
Franchise fees
4,058,200
4,058,200
3,245,696
(812,504)
State shared
115,100,000
115,100,000
117,646,741
2,546,741
Grants and entitlements
1,041,636
1,041,636
1,035,672
(5,964)
Licenses and permits
6,978,300
6,978,300
13,820,770
6,842,470
Charges for services
25,079,749
25,079,749
26,084,156
1,004,407
Fines and forfeitures
3,657,800
3,657,800
4,180,603
522,803
Rentals
66,500
66,500
137,707
71,207
Interest revenue
3,777,000
3,777,000
17,740,997
13,963,997
Miscellaneous
316,300
316,300
468,904
152,604
Total Revenues
368,067,407
368,067,407
400,727,174
32,659,767
EXPENDITURES:
City clerk
1,136,197
1,175,838
1,076,198
99,640
City magistrate
5,847,458
6,103,175
5,429,879
673,296
City manager
25,752,238
28,545,424
26,285,180
2,260,244
Communications and public affairs
3,505,329
4,021,760
3,662,705
359,055
Community services
34,749,309
37,608,887
35,353,549
2,255,338
Development services
12,973,690
15,140,323
13,499,947
1,640,376
Fire
48,680,766
52,451,377
49,832,361
2,619,016
Information technology
24,021,020
30,240,987
23,770,594
6,470,393
Law
5,171,570
5,363,798
5,183,408
180,390
Management services
104,347,018
61,105,181
20,658,676
40,446,505
Mayor and council
1,286,810
1,355,248
1,620,710
(265,462)
Neighborhood resources
10,887,996
10,776,379
9,356,030
1,420,349
Police
98,084,065
110,425,266
107,878,841
2,546,425
Public works
10,096,986
11,561,245
10,339,805
1,221,440
Total expenditures
386,540,452
375,874,888
313,947,883
61,927,005
REVENUES OVER (UNDER) EXPENDITURES
(18,473,045)
(7,807,481)
86,779,291
94,586,772
OTHER FINANCING SOURCES (USES):
Proceeds from disposal of capital assets
(400,000)
(400,000)
48,545
448,545
Transfers in
9,182,282
9,182,282
—
(9,182,282)
Transfers out
(175,071,585)
(172,776,074)
(56,721,776)
116,054,298
Total other financing sources (uses)
(166,289,303)
(163,993,792)
(56,673,231)
107,320,561
Net change in fund balance
(184,762,348)
(171,801,273)
30,106,060
201,907,333
Fund balance, July 1, 2024
318,950,270
318,950,270
318,950,270
—
Fund balance, June 30, 2025
$
134,187,922
$
147,148,997
$
349,056,330
$
201,907,333
See accompanying notes to this schedule.
93
City of Chandler
Schedule of the Proportionate Share of the Net Pension Liability -
Arizona State Retirement System
June 30, 2025
2025
2024
2023
2022
City's proportion of the net pension
liability (asset)
0.74 %
0.68 %
0.67 %
0.71 %
City's proportionate share of the net
pension liability (asset)
$ 117,777,479
$ 110,384,963
$ 110,127,657
$ 93,397,278
City's covered payroll
$ 97,850,881
$ 89,064,154
$ 79,760,571
$ 79,544,042
City's proportionate share of the net
pension liability (asset) as a
percentage of its covered payroll
120.36 %
123.94 %
138.07 %
117.42 %
Plan fiduciary net position as a
percentage of the total
pension liability
76.93 %
75.47 %
74.26 %
78.58 %
94
2021
2020
2019
2018
2017
2016
0.71 %
0.72 %
0.76 %
0.74 %
0.75 %
0.73 %
$
122,547,011
$
104,541,379
$
106,413,043
$
115,691,952
$
121,549,835
$
113,885,153
$
76,880,601
$
75,407,689
$
75,579,140
$
72,284,183
$
70,362,938
$
67,230,465
159.40 %
138.63 %
140.80 %
160.05 %
172.75 %
169.40 %
69.33 %
73.24 %
73.40 %
69.92 %
67.06 %
68.35 %
95
City of Chandler
Schedule of Contributions -
All Pension Plans
June 30, 2025
2025
2024
2023
2022
Arizona State Retirement System:
Actuarially determined contribution
13,038,745
11,771,461
10,615,589
9,580,356
Contributions in relation to the
actuarially determined contribution
13,038,745
11,771,461
10,615,589
9,580,356
Contribution deficiency (excess)
$
—
$
—
$
—
$
—
City's covered payroll
$ 108,205,353
$ 97,850,881
$ 89,064,154
$ 79,760,571
Contributions as a percentage
of covered payroll
12.05 %
12.03 %
11.92 %
12.01 %
Public Safety Personnel Retirement
System - Police:
Actuarially determined contribution
$ 12,834,018
$ 14,524,367
$ 14,382,908
$ 13,447,447
Contributions in relation to the
actuarially determined contribution1
17,618,966
64,374,367
47,767,268
28,162,248
Contribution deficiency (excess)
$ (4,784,948)
$ (49,850,000)
$ (33,384,360)
$ (14,714,801)
City's covered payroll
$ 35,306,790
$ 33,320,411
$ 30,536,960
$ 27,692,436
Contributions as a percentage
of covered payroll
49.90 %
193.20 %
156.42 %
101.70 %
Public Safety Personnel Retirement
System - Fire:
Actuarially determined contribution
$
6,528,987
$
7,800,462
$
7,835,001
$
7,762,298
Contributions in relation to the
actuarially determined contribution1
8,744,039
30,950,462
24,450,641
15,047,497
Contribution deficiency (excess)
$ (2,215,052)
$ (23,150,000)
$ (16,615,640)
$ (7,285,199)
City's covered payroll
$ 20,163,641
$ 20,980,264
$ 19,900,942
$ 18,781,268
Contributions as a percentage
of covered payroll
43.37 %
147.52 %
122.86 %
80.12 %
1Additional contributions above the actuarially determined contributions were made beginning with fiscal year
2016-17 and continue.
96
2021
2020
2019
2018
2017
2016
9,267,255
8,844,068
8,470,741
8,268,029
7,793,041
7,634,805
9,267,255
8,844,068
8,470,741
8,268,029
7,793,041
7,634,805
$
—
$
—
$
—
$
—
$
—
$
—
$
79,544,042
$
77,240,769
$
75,766,914
$
75,853,477
$
72,284,183
$
70,362,938
11.65 %
11.45 %
11.18 %
10.90 %
10.78 %
10.85 %
$
12,984,242
$
12,080,035
$
12,267,559
$
10,950,501
$
8,470,411
$
8,561,143
22,757,769
28,869,722
15,555,559
14,300,501
10,145,411
8,561,143
$
(9,773,527)
$ (16,789,687)
$
(3,288,000)
$
(3,350,000)
$
(1,675,000)
$
—
$
26,738,554
$
28,589,014
$
27,009,157
$
28,294,661
$
27,058,086
$
27,946,237
85.11 %
100.98 %
57.59 %
50.54 %
37.49 %
30.63 %
$
7,886,828
$
6,682,480
$
7,021,133
$
6,392,313
$
4,616,587
$
4,438,495
13,113,301
15,627,548
8,733,133
8,042,313
5,441,587
4,438,495
$
(5,226,473)
$
(8,945,068)
$
(1,712,000)
$
(1,650,000)
$
(825,000)
$
—
$
18,143,152
$
19,154,805
$
17,259,422
$
18,200,175
$
17,275,940
$
16,874,362
72.28 %
81.59 %
50.60 %
44.19 %
31.50 %
26.30 %
97
City of Chandler
Schedule of Changes in the Net Pension Liability and Related Ratios -
Public Safety Personnel Retirement System - Police
June 30, 2025
2025
2024
2023
2022
Total pension liability
Service cost
$
6,493,314
$
6,077,100
$
5,687,800
$
5,440,836
Interest
27,142,796
24,895,921
23,623,567
22,385,115
Changes of benefit terms
—
—
—
Differences between expected and actual
experience
14,690,679
15,926,154
4,884,171
3,894,134
Changes of assumptions
—
3,565,456
—
Benefit payments, including refunds
(16,639,362)
(15,578,228)
(16,390,013)
(13,613,884)
Net change in total pension liability
31,687,427
31,320,947
21,370,981
18,106,201
Total pension liability - beginning
378,809,648
347,488,701
326,117,720
308,011,519
Total pension liability - ending
$
410,497,075
$
378,809,648
$
347,488,701
$
326,117,720
Plan fiduciary net position
Contributions - employer
$
64,765,257
$
47,624,383
$
28,044,847
$
22,596,733
Contributions - employee
3,119,591
2,989,074
2,844,468
2,424,870
Net investment income
37,120,427
22,150,142
(10,549,363)
53,483,321
Benefit payments, including refunds
(16,639,362)
(15,578,228)
(16,390,013)
(13,613,884)
Administrative expense
(136,384)
(106,671)
(190,200)
(250,715)
Other
—
1,986
5,998
2,439
Net change in plan fiduciary net position
88,229,529
57,080,686
3,765,737
64,642,764
Plan fiduciary net position - beginning
305,268,786
248,188,100
244,422,363
179,779,599
Plan fiduciary net position - ending
$
393,498,315
$
305,268,786
$
248,188,100
$
244,422,363
Net pension liability - ending
$
16,998,760
$
73,540,862
$
99,300,601
$
81,695,357
Plan fiduciary net position as a percentage of
the total pension liability
95.86 %
80.59 %
71.42 %
74.95 %
Covered payroll
$
33,320,411
$
30,536,960
$
27,383,139
$
26,480,082
Net pension liability as a percentage of
covered payroll
51.02 %
240.83 %
362.63 %
308.52 %
98
2021
2020
2019
2018
2017
2016
$
5,696,125
$
6,149,336
$
5,737,868
$
6,092,332
$
5,337,103
$
4,583,770
20,504,731
19,203,025
17,999,842
17,064,596
14,964,498
13,839,509
—
—
—
1,501,042
17,456,919
—
12,866,840
1,302,509
(671,252)
(6,211,672)
858,761
4,879,849
—
6,562,499
—
6,528,203
8,537,784
—
(12,493,545)
(10,261,998)
(9,913,263)
(8,254,947)
(13,015,625)
(5,681,836)
26,574,151
22,955,371
13,153,195
16,719,554
34,139,440
17,621,292
281,437,368
258,481,997
245,328,802
228,609,248
194,469,808
176,848,516
$
308,011,519
$
281,437,368
$
258,481,997
$
245,328,802
$
228,609,248
$
194,469,808
$
28,799,919
$
15,572,686
$
10,296,409
$
10,247,877
$
8,728,082
$
6,155,142
2,909,915
2,206,379
2,765,932
3,244,412
3,633,359
3,308,265
2,344,516
8,365,394
9,301,979
14,017,325
677,501
3,873,466
(12,493,545)
(10,261,998)
(9,913,263)
(8,254,947)
(13,015,625)
(5,681,836)
(191,143)
(146,042)
(142,274)
(124,430)
(97,889)
(94,891)
(2,317)
(102,911)
24,215
(167,280)
238,667
(70,777)
21,367,345
15,633,508
12,332,998
18,962,957
164,095
7,489,369
158,412,254
142,778,746
130,445,748
111,482,791
111,318,696
103,829,327
$
179,779,599
$
158,412,254
$
142,778,746
$
130,445,748
$
111,482,791
$
111,318,696
$
128,231,920
$
123,025,114
$
115,703,251
$
114,883,054
$
117,126,457
$
83,151,112
58.37 %
56.29 %
55.24 %
53.17 %
48.77 %
57.24 %
$
28,859,014
$
28,848,732
$
28,294,661
$
27,058,086
$
27,946,237
$
26,187,641
444.34 %
426.45 %
408.92 %
424.58 %
419.11 %
317.52 %
99
City of Chandler
Schedule of Changes in the Net Pension Liability and Related Ratios -
Public Safety Personnel Retirement System - Fire
June 30, 2025
2025
2024
2023
2022
Total pension liability
Service cost
$
4,949,074
$
4,818,001
$
4,265,733
$
3,923,796
Interest
16,254,746
15,003,773
14,270,752
13,243,975
Changes of benefit terms
—
—
—
—
Differences between expected and actual
experience
11,553,827
7,784,656
397,039
4,097,391
Changes of assumptions
—
—
1,375,658
—
Benefit payments, including refunds
(12,896,626)
(7,829,127)
(8,101,828)
(6,981,473)
Net change in total pension liability
19,861,021
19,777,303
12,207,354
14,283,689
Total pension liability - beginning
227,259,596
207,482,293
195,274,939
180,991,250
Total pension liability - ending
$
247,120,617
$
227,259,596
$
207,482,293
$
195,274,939
Plan fiduciary net position
Contributions - employer
$
31,803,422
$
24,643,731
$
15,211,791
$
13,299,020
Contributions - employee
2,358,323
2,063,374
1,610,854
1,778,804
Net investment income
22,248,833
13,853,029
(6,745,327)
34,335,848
Benefit payments, including refunds
(12,896,626)
(7,829,127)
(8,101,828)
(6,981,473)
Administrative expense
(78,574)
(60,174)
(121,595)
(160,215)
Other
—
—
—
4,795
Net change in plan fiduciary net position
43,435,378
32,670,833
1,853,895
42,276,779
Plan fiduciary net position - beginning
192,351,812
159,680,979
157,827,084
115,550,305
Plan fiduciary net position - ending
$
235,787,190
$
192,351,812
$
159,680,979
$
157,827,084
Net pension liability - ending
$
11,333,427
$
34,907,784
$
47,801,314
$
37,447,855
Plan fiduciary net position as a percentage of
the total pension liability
95.41 %
84.64 %
76.96 %
80.82 %
Covered payroll
$
21,920,009
$
20,259,508
$
18,946,241
$
18,187,540
Net pension liability as a percentage of
covered payroll
51.70 %
172.30 %
252.30 %
205.90 %
100
2021
2020
2019
2018
2017
2016
$
4,025,473
$
4,353,346
$
4,014,526
$
3,863,571
$
3,174,665
$
2,915,603
12,453,112
11,689,082
10,794,299
9,983,423
8,707,808
8,264,915
—
—
—
753,382
10,272,193
—
1,086,650
(171,678)
1,014,752
941,823
96,063
(1,037,307)
—
3,122,509
—
2,845,297
4,937,927
—
(6,278,162)
(5,792,594)
(6,363,418)
(5,049,317)
(5,647,270)
(3,614,319)
11,287,073
13,200,665
9,460,159
13,338,179
21,541,386
6,528,892
169,704,177
156,503,512
147,043,353
133,705,174
112,163,788
105,634,896
$
180,991,250
$
169,704,177
$
156,503,512
$
147,043,353
$
133,705,174
$
112,163,788
$
15,654,338
$
8,004,060
$
5,956,704
$
5,514,825
$
4,672,177
$
3,222,291
1,432,043
1,462,348
1,633,743
2,312,753
2,140,037
1,837,291
1,488,011
5,389,738
6,174,093
9,228,731
440,223
2,568,880
(6,278,162)
(5,792,594)
(6,363,418)
(5,049,317)
(5,647,270)
(3,614,319)
(121,320)
(94,355)
(94,669)
(82,059)
(63,746)
(63,063)
5
(42,251)
1,035
50,502
38,948
(55,142)
12,174,915
8,926,946
7,307,488
11,975,435
1,580,369
3,895,938
103,375,390
94,448,444
87,140,956
75,165,521
73,585,152
69,689,214
$
115,550,305
$
103,375,390
$
94,448,444
87,140,956
75,165,521
73,585,152
$
65,440,945
$
66,328,787
$
62,055,068
$
59,902,397
$
58,539,653
$
38,578,636
63.84 %
60.92 %
60.35 %
59.26 %
56.22 %
65.61 %
$
19,154,805
$
19,025,780
$
18,200,175
$
17,275,940
$
16,874,362
$
15,671,133
341.64 %
348.63 %
340.96 %
346.74 %
346.91 %
246.18 %
101
City of Chandler
Schedule of Changes in OPEB Liabilities and Related Ratios -
Single Employer Plan
June 30, 2025
2025
2024
2023
Measurement date
6/30/2024
6/30/2023
6/30/2022
Total OPEB liability - beginning of year
$ 77,053,254
$ 73,012,042
$ 81,921,795
Changes for the year
Service cost
4,216,624
3,516,892
4,846,361
Interest
2,886,733
2,654,511
1,844,376
Changes of benefit terms
—
1,330,772
—
Differences between expected and actual experience
—
1,267,071
—
Changes in assumptions or other inputs
1,400,743
(1,615,465)
(12,824,888)
Benefit payments
(4,402,073)
(3,112,569)
(2,775,602)
Net changes
4,102,027
4,041,212
(8,909,753)
Total OPEB liability - end of year
$ 81,155,281
$ 77,053,254
$ 73,012,042
Total covered employee payroll
174,947,856
157,665,425
$ 142,472,650
Total OPEB liability as percentage of covered employee
payroll
46.39 %
48.87 %
51.25 %
The city implemented GASB Statement No. 75, Accounting and Financial Reporting for Postemployment Benefits
Other Than Pensions, for the fiscal year ended June 30, 2018. Information for the prior years is not available.
Notes: No assets are accumulated in a trust that meets the criteria in paragraph 4 of GASB Statement No. 75,
Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions.
This schedule is intended to show information for ten years. Additional years' information will be displayed as it
becomes available.
102
2022
2021
2020
2019
2018
6/30/2021
6/30/2020
6/30/2019
6/30/2018
6/30/2017
$
63,003,983
$
53,112,727
$
51,751,856
$
52,838,811
$
66,519,700
3,414,033
2,940,955
2,585,397
3,020,484
3,962,284
1,440,322
1,921,296
2,059,914
1,939,376
1,967,447
—
—
—
—
—
(2,181,125)
—
(5,086,575)
(883,708)
(8,539,064)
18,748,388
7,368,121
4,021,143
(1,789,527)
(8,174,073)
(2,503,806)
(2,339,116)
(2,219,008)
(3,373,580)
(2,897,483)
18,917,812
9,891,256
1,360,871
(1,086,955)
(13,680,889)
81,921,795
63,003,983
$
53,112,727
$
51,751,856
$
52,838,811
$
130,254,557
$
116,931,839
$
113,713,741
$
108,862,317
$
106,207,139
62.89 %
53.88 %
46.71 %
47.54 %
49.75 %
103
NOTE 1 - Budgetary Basis of Accounting
The adopted budget of the city is prepared on a basis consistent with accounting principles generally
accepted in the United States of America with the following exception: reserved encumbrances at year end
are recognized as expenditures. Consequently, the following adjustment is necessary to present the
change in fund balance for the general fund on a budgetary basis in order to provide a meaningful
comparison.
General Fund
Statement of Revenues, Expenditures and Changes in
Fund Balances- Net change in fund balance
$
42,406,095
Reserved encumbrances at June 30, 2025 recognized as
budgetary expenditures in fiscal year ended June 30, 2025
(12,300,035)
Budgetary Comparison Schedule - Net change in fund
balance
$
30,106,060
NOTE 2 - Pension Plan Schedules
Actuarial Assumptions for Valuations Performed
The information presented in the required supplementary schedules was determined as part of the
actuarial valuations at the dates indicated, which is the most recent actuarial valuation. The actuarial
assumptions used are disclosed in the notes to the financial statements.
Factors that Affect Trends - Arizona State Retirement System (ASRS)
The actuarial assumptions used in the June 30, 2023 valuation were based on the results of an actuarial
experience study for the five-year period ended June 30, 2020. The purpose of the experience study was
to review actual experience in relation to the actuarial assumptions in effect. The ASRS Board adopted the
experience study recommended changes which were applied to the June 30, 2021 actuarial valuation. The
study did not include an analysis of the assumed investment rate of return.
Factors that Affect Trends - Public Safety Personnel Retirement System (PSPRS)
The actuarial assumptions used in the June 30, 2024 valuation for PSPRS were based on the results of an
actuarial experience study for the period ending June 30, 2022. The total pension liability used to calculate
the net pension liability for PSPRS was determined by an actuarial valuation as of that date. The total
pension liability as of June 30, 2024 reflects changes of benefit terms and actuarial assumptions for
funding assumed future permanent benefit increases.
CITY OF CHANDLER, ARIZONA
Notes to the Required Supplementary Information
June 30, 2025
104
NOTE 3 - Other Post Retirement Employment Benefit (OPEB) Plan Schedules
The City of Chandler does not have assets invested or accumulated in a qualified OPEB trust and funds
the plan on a pay-as-you-go basis.
Actuarial Assumptions for Valuations Performed
The information presented in the required supplementary schedules was determined as part of the
actuarial valuations at the dates indicated, which is the most recent actuarial valuation. The actuarial
assumptions used are disclosed in the notes to the financial statements.
Factors that Affect Trends
The actuarial assumptions used in the June 30, 2024 valuation were made for the purposes of fulfilling
plan accounting requirements. Factors such as retiree group program experience, changes in
assumptions and changes in retiree group benefits program provisions or applicable law may differ from
future actuarial measurements.
CITY OF CHANDLER, ARIZONA
Notes to the Required Supplementary Information
June 30, 2025
105
106
OTHER FINANCIAL STATEMENTS
107
108
City of Chandler
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
General Obligation Bonds Debt Service
For the year ended June 30, 2025
Non-GAAP
Over
Budgeted Amounts
Actual
(Under)
Original
Final
Amounts
Final Budget
REVENUES:
Property taxes
$
35,940,068
$
35,940,068
$
35,818,046
$
(122,022)
Interest revenue
160,000
160,000
829,979
669,979
Total revenues
36,100,068
36,100,068
36,648,025
547,957
EXPENDITURES:
General government
300,000
300,000
—
(300,000)
Debt service
Principal
37,975,023
37,975,023
37,975,023
—
Interest and fiscal charges
8,652,575
8,652,575
8,652,575
—
Total expenditures
46,927,598
46,927,598
46,627,598
(300,000)
Excess (deficiency) of revenues over
expenditures
(10,827,530)
(10,827,530)
(9,979,573)
847,957
OTHER FINANCING SOURCES (USES):
Transfers in
10,500,000
10,500,000
10,521,439
21,439
Total other financing sources (uses)
10,500,000
10,500,000
10,521,439
21,439
Net change in fund balance
(327,530)
(327,530)
541,866
869,396
Fund balance, July 1, 2024
1,646,322
1,646,322
1,646,322
—
Fund balance, June 30, 2025
$
1,318,792
$
1,318,792
$
2,188,188
$
869,396
Statement of Revenues, Expenditures and Changes in Fund
Balances - General Obligation Bonds Debt Service Fund
$
211,855
Settlements and liabilities at June 30, 2025 not recognized as
budgetary expenditures in fiscal year ended June 30, 2025
330,011
Budgetary Comparison Schedule for the General Obligation
Bonds Debt Service Fund
$
541,866
109
NON-MAJOR SPECIAL REVENUE FUNDS
A Special Revenue Fund is used to finance particular activities and is created out of receipts of specific taxes
or other earmarked revenues. Such funds are authorized by statutory or charter provisions to pay for
certain activities with some special form of continuing revenues.
Highway User
Used to account for the receipt and expenditure of the city’s allocation of state highway user taxes. State
law restricts the use of these monies to maintenance, construction and reconstruction of streets and
repayment of transportation-related debt.
Local Transportation Assistance
Used to account for the receipt and expenditure of the city’s allocation of state lottery monies. State law
restricts the use of these monies to street and highway projects in the public right-of-way and to mass
transportation purposes.
Grants
Used to account for the receipt and expenditure of miscellaneous federal, state and local grants awarded to
the city for various specific operational purposes.
Community Development
Used to account for monies received from the U.S. Department of Housing and Urban Development and
Maricopa County for affordable housing activities including housing rehabilitation and redevelopment
activities.
Police Confiscated Property
Used to account for monies confiscated by the Police Department and monies received from the sale of
confiscated property.
Parks and Recreation
Used to account for donations for park improvements and programs restricted pursuant to donor
covenants.
Museum
Used to account for donations for museum improvements and programs restricted pursuant to donor
covenants.
Library
Used to account for donations for library improvements and programs restricted pursuant to donor
covenants.
City of Chandler
Non-Major Governmental Funds
110
NON-MAJOR CAPITAL PROJECTS FUNDS
General Government
Used to account for the acquisition, construction and improvements of general government projects.
Public Buildings
Used to account for the acquisition, construction, reconstruction, improvement and renovation of city
buildings.
Grants
Used to account for the receipt and expenditure of miscellaneous federal, state and local grants awarded to
the city for various specific capital purposes.
Streets
Used to account for the acquisition, construction and improvements of city streets projects.
Community Services
Used to account for the acquisition of land and equipment, development, construction and improvement of
community parks and projects.
Public Safety Buildings and Improvements
Used to account for public safety, e.g., Police and Fire Departments, building construction, renovation,
improvements and equipment purchases.
Vehicle and Capital Equipment Replacement
Used to account for the purchase and/or replacement of general equipment-type assets, e.g., vehicles,
furniture and office equipment.
Technology Replacement
Used to account for the purchase and/or replacement of technology assets.
Municipal Arts
Used to account for amounts earmarked for the acquisition of art for public spaces.
City of Chandler
Non-Major Governmental Funds
111
112
City of Chandler
Combining Balance Sheet -
Non-Major Governmental Funds
June 30, 2025
Special Revenue
Local
Police
Highway
Transportation
Community
Confiscated
Parks and
User
Assistance
Grants
Development
Property
Recreation
ASSETS
Equity in pooled cash and investments
$ 48,071,872
$
6,378,679
$ 9,480,055
$
—
$
519,390
$ 382,277
Receivables (net of allowance
for uncollectible):
Notes
—
—
—
328,476
—
—
Accrued interest
299,173
39,862
—
—
2,204
2,410
Other
—
—
—
—
—
—
Due from other governments
2,147,442
322,438
414,912
521,602
98,000
—
Total assets
$ 50,518,487
$
6,740,979
$ 9,894,967
$
850,078
$
619,594
$ 384,687
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES AND FUND BALANCES
Liabilities:
Accounts payable
$
381,122
$
40,784
$ 208,094
$
19,175
$
320,803
$
450
Accrued payroll
299,019
1,084
75,274
30,226
—
3,433
Trust liabilities and deposits
—
—
—
—
294,433
—
Due to other funds
—
—
—
453,569
—
—
Advances from other funds
—
—
—
—
—
—
Unearned revenue
—
—
467,128
—
—
—
Total liabilities
680,141
41,868
750,496
502,970
615,236
3,883
Deferred inflows of resources:
Unavailable revenues - grants
—
—
5,024
—
—
—
Total deferred inflows of resources
—
—
5,024
—
—
—
Fund balances (deficits):
Restricted
49,838,346
6,699,111
9,139,447
347,108
4,358
380,804
Unassigned
—
—
—
—
—
—
Total fund balances (deficits)
49,838,346
6,699,111
9,139,447
347,108
4,358
380,804
Total liabilities, deferred inflows
and fund balances
$ 50,518,487
$
6,740,979
$ 9,894,967
$
850,078
$
619,594
$ 384,687
(Continued)
113
City of Chandler
Combining Balance Sheet -
Non-Major Governmental Funds
June 30, 2025
Special Revenue
Capital Projects
General
Public
Museum
Library
Government
Buildings
Grants
ASSETS
Equity in pooled cash and investments
$
42,212
$
290,527
$
1,592,266
$
—
$
—
Receivables (net of allowance
for uncollectible):
Notes
—
—
—
—
—
Accrued interest
261
1,853
—
379
—
Other
—
—
—
—
365,495
Due from other governments
—
—
110,847
—
4,769,115
Total assets
$
42,473
$
292,380
$
1,703,113
$
379
$
5,134,610
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES AND FUND BALANCES
Liabilities:
Accounts payable
$
—
$
1,028
$
4,753,535
$
209,852
$
2,395,430
Accrued payroll
—
—
—
—
—
Trust liabilities and deposits
—
—
—
—
—
Due to other funds
—
—
—
603,719
10,092,190
Advances from other funds
—
—
—
1,228,401
—
Unearned revenue
—
—
—
—
—
Total liabilities
—
1,028
4,753,535
2,041,972
12,487,620
Deferred inflows of resources:
Unavailable revenues - grants
—
—
—
—
—
Total deferred inflows of resources
—
—
—
—
—
Fund balances (deficits):
Restricted
42,473
291,352
—
—
—
Unassigned
—
—
(3,050,422)
(2,041,593)
(7,353,010)
Total fund balances (deficits)
42,473
291,352
(3,050,422)
(2,041,593)
(7,353,010)
Total liabilities, deferred inflows
and fund balances
$
42,473
$
292,380
$
1,703,113
$
379
$
5,134,610
114
Capital Projects
Public Safety
Vehicle and
Total Other
Community
Buildings and
Capital Equipment
Technology
Municipal
Governmental
Streets
Services
Improvements
Replacement
Replacement
Arts
Funds
$
60,734,032
$
48,678,612
$
434,924
$
11,110,491
$
12,433,118
$
746,421
$
200,894,876
—
—
—
—
—
—
328,476
313,270
188,819
3,669
70,251
78,124
4,601
1,004,876
—
—
—
—
—
—
365,495
—
—
—
—
—
—
8,384,356
$
61,047,302
$
48,867,431
$
438,593
$
11,180,742
$
12,511,242
$
751,022
$
210,978,079
$
972,268
$
3,662,526
$
—
$
230,360
$
446,637
$
—
$
13,642,064
—
—
—
—
—
—
409,036
—
—
—
—
—
—
294,433
—
—
—
—
—
—
11,149,478
—
—
3,912,432
—
—
—
5,140,833
—
—
—
—
—
—
467,128
972,268
3,662,526
3,912,432
230,360
446,637
—
31,102,972
—
—
—
—
—
—
5,024
—
—
—
—
—
—
5,024
60,075,034
45,204,905
—
10,950,382
12,064,605
751,022
195,788,947
—
—
(3,473,839)
—
—
—
(15,918,864)
60,075,034
45,204,905
(3,473,839)
10,950,382
12,064,605
751,022
179,870,083
$
61,047,302
$
48,867,431
$
438,593
$
11,180,742
$
12,511,242
$
751,022
$
210,978,079
(Concluded)
115
City of Chandler
Combining Statement of Revenues, Expenditures and Changes in Fund Balances -
Non-Major Governmental Funds
For the year ended June 30, 2025
Special Revenue
Local
Police
Highway
Transportation
Community
Confiscated
Parks and
User
Assistance
Grants
Development
Property
Recreation
REVENUES:
Highway user taxes
$ 21,880,284
$
—
$
—
$
—
$
—
$
—
Grants and entitlements
—
1,024,989
2,958,506
1,642,822
—
119,729
System development fees
—
—
—
—
—
—
Charges for services
—
198,440
—
—
—
—
Fines and forfeitures
—
—
—
—
702,455
—
Interest revenue
2,639,184
354,121
198
1
(1)
20,598
Miscellaneous
73,575
186,798
—
—
—
9,766
Total revenues
24,593,043
1,764,348
2,958,704
1,642,823
702,454
150,093
EXPENDITURES:
Current:
General government
—
—
1,080,195
1,780,088
—
6,616
Public safety
—
—
1,271,509
—
231,451
—
Transportation and development
9,157,533
1,202,365
808,541
—
—
—
Community services
—
—
246,242
—
—
95,470
Capital outlay
11,012,044
81,352
—
—
773,017
129
Debt service:
Interest and fiscal charges
—
—
—
—
—
—
Total expenditures
20,169,577
1,283,717
3,406,487
1,780,088
1,004,468
102,215
EXCESS (DEFICIENCY) OF
REVENUES OVER EXPENDITURES
4,423,466
480,631
(447,783)
(137,265)
(302,014)
47,878
OTHER FINANCING SOURCES (USES):
Proceeds from disposal of capital assets
—
—
—
—
—
—
Transfers in
—
—
—
—
—
—
Transfers out
(281,672)
(4,212)
—
—
—
—
Total other financing sources (uses)
(281,672)
(4,212)
—
—
—
—
NET CHANGE IN FUND BALANCE
4,141,794
476,419
(447,783)
(137,265)
(302,014)
47,878
FUND BALANCES (DEFICITS):
Beginning of year
45,696,552
6,222,692
9,587,230
484,373
306,372
332,926
End of year
$ 49,838,346
$
6,699,111
$ 9,139,447
$
347,108
$
4,358
$ 380,804
116
Special Revenue
Capital Projects
General
Public
Community
Museum
Library
Government
Buildings
Grants
Streets
Services
$
—
$
—
$
—
$
—
$
—
$
—
$
—
1,369
91,710
—
—
14,722,431
—
—
—
—
—
113,015
—
1,742,758
974,295
—
—
3,629,352
—
365,495
—
—
—
—
—
—
—
—
—
2,280
15,874
3
19,984
4
3,519,509
2,346,142
—
44,522
2,846
—
—
875
8,950
3,649
152,106
3,632,201
132,999
15,087,930
5,263,142
3,329,387
—
—
8,295,835
3,765
113,431
569,199
373,235
—
—
38,798
—
—
—
—
—
—
4,538,294
56,885
3,148,889
3,590,043
—
—
87,163
10,246
—
1
—
4,228,095
—
—
29,098,303
2,472,978
13,252,347
15,978,458
21,717,522
—
—
—
—
—
1,124
841
—
87,163
41,981,476
2,533,628
16,514,668
20,138,824
26,319,693
3,649
64,943
(38,349,275)
(2,400,629)
(1,426,738)
(14,875,682)
(22,990,306)
—
—
—
—
—
—
—
—
—
34,784,659
—
—
—
—
—
—
—
—
—
(10,000,000)
(521,439)
—
—
34,784,659
—
—
(10,000,000)
(521,439)
3,649
64,943
(3,564,616)
(2,400,629)
(1,426,738)
(24,875,682)
(23,511,745)
38,824
226,409
514,194
359,036
(5,926,272)
84,950,716
68,716,650
$
42,473
$
291,352
$
(3,050,422) $
(2,041,593) $
(7,353,010) $
60,075,034
$
45,204,905
(Continued)
117
City of Chandler
Combining Statement of Revenues, Expenditures and Changes in Fund Balances -
Non-Major Governmental Funds
For the year ended June 30, 2025
Capital Projects
Public Safety
Vehicle and
Total Other
Buildings and
Capital Equipment
Technology
Municipal
Governmental
Improvements
Replacement
Replacement
Arts
Funds
REVENUES:
Highway user taxes
$
—
$
—
$
—
$
—
$
21,880,284
Grants and entitlements
—
—
—
—
20,561,556
System development fees
386,848
—
—
—
3,216,916
Charges for services
—
—
—
—
4,193,287
Fines and forfeitures
—
—
—
—
702,455
Interest revenue
50,804
722,084
722,571
48,539
10,461,895
Miscellaneous
—
154,129
—
—
481,461
Total revenues
437,652
876,213
722,571
48,539
61,497,854
EXPENDITURES:
Current:
General government
2,000
—
1,882,721
289,253
14,396,338
Public safety
177,593
—
—
—
1,719,351
Transportation and development
—
—
—
—
22,502,550
Community services
—
—
—
—
4,667,217
Capital outlay
103,475
6,507,962
1,233,387
—
102,230,974
Debt service:
Interest and fiscal charges
—
—
—
—
1,965
Total expenditures
283,068
6,507,962
3,116,108
289,253
145,518,395
EXCESS (DEFICIENCY) OF
REVENUES OVER EXPENDITURES
154,584
(5,631,749)
(2,393,537)
(240,714)
(84,020,541)
OTHER FINANCING SOURCES (USES):
Proceeds from disposal of capital assets
—
524,871
—
—
524,871
Transfers in
—
3,586,737
4,632,604
—
43,004,000
Transfers out
—
—
—
—
(10,807,323)
Total other financing sources (uses)
—
4,111,608
4,632,604
—
32,721,548
NET CHANGE IN FUND BALANCE
154,584
(1,520,141)
2,239,067
(240,714)
(51,298,993)
FUND BALANCES (DEFICITS):
Beginning of year
(3,628,423)
12,470,523
9,825,538
991,736
231,169,076
End of year
$
(3,473,839) $
10,950,382
$
12,064,605
$
751,022
$
179,870,083
(Concluded)
118
City of Chandler
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
Highway User Special Revenue
For the year ended June 30, 2025
Non-GAAP
Over
Budgeted Amounts
Actual
(Under)
Original
Final
Amounts
Final Budget
REVENUES:
Highway user taxes
$
17,000,000
$
17,000,000
$
21,880,284
$
4,880,284
Interest revenue
669,000
669,000
2,639,182
1,970,182
Miscellaneous
—
—
73,575
73,575
Total revenues
17,669,000
17,669,000
24,593,041
6,924,041
EXPENDITURES:
General government
817,084
3,925,659
—
3,925,659
Transportation and development
22,166,045
10,486,424
9,733,707
752,717
Capital outlay
8,348,569
17,209,557
15,533,143
1,676,414
Total expenditures
31,331,698
31,621,640
25,266,850
6,354,790
Excess (deficiency) of revenues over expenditures
(13,662,698)
(13,952,640)
(673,809)
13,278,831
OTHER FINANCING SOURCES (USES):
Transfers out
(303,754)
(303,754)
(281,672)
22,082
Total other financing sources (uses)
(303,754)
(303,754)
(281,672)
22,082
Net change in fund balance
(13,966,452)
(14,256,394)
(955,481)
13,300,913
Fund balance, July 1, 2024
45,696,552
45,696,552
45,696,552
—
Fund balance, June 30, 2025
$
31,730,100
$
31,440,158
$
44,741,071
$
13,300,913
119
City of Chandler
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
Local Transportation Assistance Special Revenue
For the year ended June 30, 2025
Non-GAAP
Over
Budgeted Amounts
Actual
(Under)
Original
Final
Amounts
Final Budget
REVENUES:
Grants and entitlements
$
699,600
$
699,600
$
1,024,989
$
325,389
Charges for services
160,000
160,000
198,440
38,440
Interest revenue
94,000
94,000
354,120
260,120
Miscellaneous
—
—
186,798
186,798
Total revenues
953,600
953,600
1,764,347
810,747
EXPENDITURES:
General government
3,097,300
3,097,300
—
3,097,300
Transportation and development
2,837,546
1,997,454
1,395,110
602,344
Capital outlay
185,000
1,025,092
81,352
943,740
Total expenditures
6,119,846
6,119,846
1,476,462
4,643,384
Excess (deficiency) of revenues over expenditures
(5,166,246)
(5,166,246)
287,885
5,454,131
OTHER FINANCING SOURCES (USES):
Transfers out
(4,212)
(4,212)
(4,212)
—
Total other financing sources (uses)
(4,212)
(4,212)
(4,212)
—
Net change in fund balance
(5,170,458)
(5,170,458)
283,673
5,454,131
Fund balance, July 1, 2024
6,222,692
6,222,692
6,222,692
—
Fund balance, June 30, 2025
$
1,052,234
$
1,052,234
$
6,506,365
$
5,454,131
120
City of Chandler
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
Grants Special Revenue
For the year ended June 30, 2025
Non-GAAP
Over
Budgeted Amounts
Actual
(Under)
Original
Final
Amounts
Final Budget
REVENUES:
Grants and entitlements
$
5,102,000
$
5,102,000
$
2,958,506
$
(2,143,494)
Interest revenue
—
—
192
192
Total revenues
5,102,000
5,102,000
2,958,698
(2,143,302)
EXPENDITURES:
General government
14,658,976
7,850,554
1,992,919
5,857,635
Public safety
—
3,029,998
1,321,376
1,708,622
Transportation and development
—
2,211,345
808,541
1,402,804
Community services
—
1,439,347
288,092
1,151,255
Capital outlay
—
118,950
104,350
14,600
Total expenditures
14,658,976
14,650,194
4,515,278
10,134,916
Excess (deficiency) of revenues over expenditures
(9,556,976)
(9,548,194)
(1,556,580)
7,991,614
Net change in fund balance
(9,556,976)
(9,548,194)
(1,556,580)
7,991,614
Fund balance, July 1, 2024
9,587,230
9,587,230
9,587,230
—
Fund balance, June 30, 2025
$
30,254
$
39,036
$
8,030,650
$
7,991,614
121
City of Chandler
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual -
Community Development Special Revenue
For the year ended June 30, 2025
Non-GAAP
Over
Budgeted Amounts
Actual
(Under)
Original
Final
Amounts
Final Budget
REVENUES:
Grants and entitlements
$
7,360,000
$
7,360,000
$
1,642,822
$
(5,717,178)
Total revenues
7,360,000
7,360,000
1,642,822
(5,717,178)
EXPENDITURES:
General government
8,665,094
8,371,026
2,196,458
6,174,568
Total expenditures
8,665,094
8,371,026
2,196,458
6,174,568
Excess (deficiency) of revenues over expenditures
(1,305,094)
(1,011,026)
(553,636)
457,390
Net change in fund balance
(1,305,094)
(1,011,026)
(553,636)
457,390
Fund balance, July 1, 2024
484,373
484,373
484,373
—
Fund balance (deficit), June 30, 2025
$
(820,721) $
(526,653) $
(69,263) $
457,390
122
City of Chandler
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual -
Police Confiscated Property Special Revenue
For the year ended June 30, 2025
Non-GAAP
Over
Budgeted Amounts
Actual
(Under)
Original
Final
Amounts
Final Budget
REVENUES:
Fines and forfeitures
$
750,000
$
750,000
$
702,455
$
(47,545)
Total revenues
750,000
750,000
702,455
(47,545)
EXPENDITURES:
General government
51,000
—
—
—
Public safety
650,000
650,000
250,137
399,863
Capital outlay
100,000
424,515
774,216
(349,701)
Total expenditures
801,000
1,074,515
1,024,353
50,162
Net change in fund balance
(51,000)
(324,515)
(321,898)
2,617
Fund balance, July 1, 2024
306,372
306,372
306,372
—
Fund balance (deficit), June 30, 2025
$
255,372
$
(18,143) $
(15,526) $
2,617
123
City of Chandler
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual -
Parks and Recreation Special Revenue
For the year ended June 30, 2025
Non-GAAP
Over
Budgeted Amounts
Actual
(Under)
Original
Final
Amounts
Final Budget
REVENUES:
Grants and entitlements
$
130,300
$
130,300
$
119,729
$
(10,571)
Interest revenue
5,000
5,000
20,597
15,597
Miscellaneous
1,000
1,000
9,766
8,766
Total revenues
136,300
136,300
150,092
13,792
EXPENDITURES:
General government
25,664
25,500
6,616
18,884
Community services
110,910
112,254
95,470
16,784
Capital outlay
—
—
129
(129)
Total expenditures
136,574
137,754
102,215
35,539
Net change in fund balance
(274)
(1,454)
47,877
49,331
Fund balance, July 1, 2024
332,926
332,926
332,926
—
Fund balance, June 30, 2025
$
332,652
$
331,472
$
380,803
$
49,331
124
City of Chandler
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual -
Museum Special Revenue
For the year ended June 30, 2025
Non-GAAP
Over
Budgeted Amounts
Actual
(Under)
Original
Final
Amounts
Final Budget
REVENUES:
Grants and entitlements
$
50
$
50
$
1,369
$
1,319
Interest revenue
1,000
1,000
2,280
1,280
Total revenues
1,050
1,050
3,649
2,599
EXPENDITURES:
General government
38,553
38,553
—
38,553
Total expenditures
38,553
38,553
—
38,553
Net change in fund balance
(37,503)
(37,503)
3,649
41,152
Fund balance, July 1, 2024
38,824
38,824
38,824
—
Fund balance, June 30, 2025
$
1,321
$
1,321
$
42,473
$
41,152
125
City of Chandler
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual -
Library Special Revenue
For the year ended June 30, 2025
Non-GAAP
Over
Budgeted Amounts
Actual
(Under)
Original
Final
Amounts
Final Budget
REVENUES:
Grants and entitlements
$
75,300
$
75,300
$
91,710
$
16,410
Interest revenue
2,000
2,000
15,874
13,874
Miscellaneous
—
—
44,522
44,522
Total revenues
77,300
77,300
152,106
74,806
EXPENDITURES:
General government
50,000
50,000
—
50,000
Community services
214,519
80,000
87,163
(7,163)
Capital outlay
—
186,241
179,041
7,200
Total expenditures
264,519
316,241
266,204
50,037
Net change in fund balance
(187,219)
(238,941)
(114,098)
124,843
Fund balance, July 1, 2024
226,409
226,409
226,409
—
Fund balance (deficit), June 30, 2025
$
39,190
$
(12,532) $
112,311
$
124,843
126
City of Chandler
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
General Government Capital Projects
For the year ended June 30, 2025
Non-GAAP
Over
Budgeted Amounts
Actual
(Under)
Original
Final
Amounts
Final Budget
REVENUES:
Miscellaneous
$
—
$
—
$
2,846
$
2,846
Total revenues
—
—
2,846
2,846
EXPENDITURES:
General government
36,771,109
32,193,271
11,341,987
20,851,284
Public safety
4,551,624
596,327
119,959
476,368
Transportation and development
39,451,439
13,808,012
7,562,124
6,245,888
Community services
14,600,358
1,031,150
10,246
1,020,904
Capital outlay
43,606,370
98,579,291
56,472,859
42,106,432
Total expenditures
138,980,900
146,208,051
75,507,175
70,700,876
Excess (deficiency) of revenues over expenditures
(138,980,900) (146,208,051)
(75,504,329)
70,703,722
OTHER FINANCING SOURCES (USES):
Capital contributions
Transfers in
138,980,900
138,980,900
34,784,659
(104,196,241)
Total other financing sources (uses)
138,980,900
138,980,900
34,784,659
(104,196,241)
Net change in fund balance
—
(7,227,151)
(40,719,670)
(33,492,519)
Fund balance, July 1, 2024
514,194
514,194
514,194
—
Fund balance (deficit), June 30, 2025
$
514,194
$
(6,712,957) $ (40,205,476) $ (33,492,519)
127
City of Chandler
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual -
Public Buildings Capital Projects
For the year ended June 30, 2025
Non-GAAP
Over
Budgeted Amounts
Actual
(Under)
Original
Final
Amounts
Final Budget
REVENUES:
System development fees
$
277,000
$
277,000
$
113,015
$
(163,985)
Interest revenue
36,400
36,400
19,984
(16,416)
Total revenues
313,400
313,400
132,999
(180,401)
EXPENDITURES:
General government
177,000
753,386
1,000
752,386
Capital outlay
4,522,000
5,140,968
3,027,076
2,113,892
Total expenditures
4,699,000
5,894,354
3,028,076
2,866,278
Excess (deficiency) of revenues over expenditures
(4,385,600)
(5,580,954)
(2,895,077)
2,685,877
OTHER FINANCING SOURCES (USES):
Transfers out
(100,000)
(100,000)
—
100,000
Total other financing sources (uses)
(100,000)
(100,000)
—
100,000
Net change in fund balance
(4,485,600)
(5,680,954)
(2,895,077)
2,785,877
Fund balance, July 1, 2024
359,036
359,036
359,036
—
Fund balance (deficit), June 30, 2025
$
(4,126,564) $
(5,321,918) $
(2,536,041) $
2,785,877
128
City of Chandler
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual -
Grants Capital Projects
For the year ended June 30, 2025
Non-GAAP
Over
Budgeted Amounts
Actual
(Under)
Original
Final
Amounts
Final Budget
REVENUES:
Grants and entitlements
$ 24,107,694
$ 24,107,694
$ 14,722,431
$
(9,385,263)
Charges for services
270,960
270,960
365,495
94,535
Total revenues
24,378,654
24,378,654
15,087,926
(9,290,728)
EXPENDITURES:
General government
9,400,747
10,431,755
120,196
10,311,559
Transportation and development
55,827,371
9,232,033
3,938,147
5,293,886
Community services
1,543,934
—
1
(1)
Capital outlay
22,060,185
70,924,466
33,729,818
37,194,648
Total expenditures
88,832,237
90,588,254
37,788,162
52,800,092
Excess (deficiency) of revenues over expenditures
(64,453,583)
(66,209,600)
(22,700,236)
43,509,364
OTHER FINANCING SOURCES (USES):
Transfers out
—
(120,000)
—
120,000
Total other financing sources (uses)
—
(120,000)
—
120,000
Net change in fund balance
(64,453,583)
(66,329,600)
(22,700,236)
43,629,364
Fund balance (deficit), July 1, 2024
(5,926,272)
(5,926,272)
(5,926,272)
—
Fund balance (deficit), June 30, 2025
$ (70,379,855) $ (72,255,872) $ (28,626,508) $ 43,629,364
129
City of Chandler
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual -
Streets Capital Projects
For the year ended June 30, 2025
Non-GAAP
Over
Budgeted Amounts
Actual
(Under)
Original
Final
Amounts
Final Budget
REVENUES:
System development fees
$
3,000,000
$
3,000,000
$
1,742,758
$
(1,257,242)
Interest revenue
1,203,000
1,203,000
3,519,506
2,316,506
Miscellaneous
—
—
875
875
Total revenues
4,203,000
4,203,000
5,263,139
1,060,139
EXPENDITURES:
General government
2,214,751
11,914,206
978,212
10,935,994
Transportation and development
76,419,879
13,560,533
4,265,318
9,295,215
Capital outlay
34,689,600
85,319,412
32,898,316
52,421,096
Total expenditures
113,324,230
110,794,151
38,141,846
72,652,305
Excess (deficiency) of revenues over expenditures
(109,121,230) (106,591,151)
(32,878,707)
73,712,444
OTHER FINANCING SOURCES (USES):
Transfers out
(10,000,000)
(10,000,000)
(10,000,000)
—
Total other financing sources (uses)
(10,000,000)
(10,000,000)
(10,000,000)
—
Net change in fund balance
(119,121,230) (116,591,151)
(42,878,707)
73,712,444
Fund balance, July 1, 2024
84,950,716
84,950,716
84,950,716
—
Fund balance (deficit), June 30, 2025
$ (34,170,514) $ (31,640,435) $ 42,072,009
$ 73,712,444
130
City of Chandler
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual -
Community Services Capital Projects
For the year ended June 30, 2025
Non-GAAP
Over
Budgeted Amounts
Actual
(Under)
Original
Final
Amounts
Final Budget
REVENUES:
System development fees
$
449,000
$
449,000
$
974,295
$
525,295
Interest revenue
1,108,400
1,108,400
2,346,144
1,237,744
Miscellaneous
—
—
8,950
8,950
Total revenues
1,557,400
1,557,400
3,329,389
1,771,989
EXPENDITURES:
General government
92,800
17,577,220
3,841
17,573,379
Community services
63,666,864
10,104,393
6,482,185
3,622,208
Capital outlay
4,620,000
42,252,370
29,465,585
12,786,785
Total expenditures
68,379,664
69,933,983
35,951,611
33,982,372
Excess (deficiency) of revenues over expenditures
(66,822,264)
(68,376,583)
(32,622,222)
35,754,361
OTHER FINANCING SOURCES (USES):
Transfers out
(500,000)
(500,000)
(521,439)
(21,439)
Total other financing sources (uses)
(500,000)
(500,000)
(521,439)
(21,439)
Net change in fund balance
(67,322,264)
(68,876,583)
(33,143,661)
35,732,922
Fund balance, July 1, 2024
68,716,650
68,716,650
68,716,650
—
Fund balance (deficit), June 30, 2025
$
1,394,386
$
(159,933) $ 35,572,989
$ 35,732,922
131
City of Chandler
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual -
Public Safety Buildings and Improvements Capital Projects
For the year ended June 30, 2025
Non-GAAP
Over
Budgeted Amounts
Actual
(Under)
Original
Final
Amounts
Final Budget
REVENUES:
System development fees
$
865,000
$
865,000
$
386,848
$
(478,152)
Interest revenue
9,000
9,000
50,802
41,802
Total revenues
874,000
874,000
437,650
(436,350)
EXPENDITURES:
General government
376,600
1,287,058
2,000
1,285,058
Public safety
7,139,084
5,488,420
4,813,537
674,883
Capital outlay
—
740,206
103,475
636,731
Total expenditures
7,515,684
7,515,684
4,919,012
2,596,672
Excess (deficiency) of revenues over expenditures
(6,641,684)
(6,641,684)
(4,481,362)
2,160,322
OTHER FINANCING SOURCES (USES):
Transfers out
(550,000)
(550,000)
—
550,000
Total other financing sources (uses)
(550,000)
(550,000)
—
550,000
Net change in fund balance
(7,191,684)
(7,191,684)
(4,481,362)
2,710,322
Fund balance (deficit), July 1, 2024
(3,628,423)
(3,628,423)
(3,628,423)
—
Fund balance (deficit), June 30, 2025
$ (10,820,107) $ (10,820,107) $
(8,109,785) $
2,710,322
132
City of Chandler
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual -
Vehicle and Capital Equipment Replacement Capital Projects
For the year ended June 30, 2025
Non-GAAP
Over
Budgeted Amounts
Actual
(Under)
Original
Final
Amounts
Final Budget
REVENUES:
Interest revenue
$
252,000
$
252,000
$
722,086
$
470,086
Miscellaneous
—
—
154,129
154,129
Total revenues
252,000
252,000
876,215
624,215
EXPENDITURES:
General government
7,120,247
808,868
51,541
757,327
Public safety
516,600
516,600
—
516,600
Capital outlay
5,239,380
8,829,377
7,415,351
1,414,026
Total expenditures
12,876,227
10,154,845
7,466,892
2,687,953
Excess (deficiency) of revenues over expenditures
(12,624,227)
(9,902,845)
(6,590,677)
3,312,168
OTHER FINANCING SOURCES (USES):
Proceeds from disposal of capital assets
300,000
300,000
524,871
224,871
Transfers in
3,586,737
3,586,737
3,586,737
—
Total other financing sources (uses)
3,886,737
3,886,737
4,111,608
224,871
Net change in fund balance
(8,737,490)
(6,016,108)
(2,479,069)
3,537,039
Fund balance, July 1, 2024
12,470,523
12,470,523
12,470,523
—
Fund balance (deficit), June 30, 2025
$
3,733,033
$
6,454,415
$
9,991,454
$
3,537,039
133
City of Chandler
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual -
Technology Replacement Capital Projects
For the year ended June 30, 2025
Non-GAAP
Over
Budgeted Amounts
Actual
(Under)
Original
Final
Amounts
Final Budget
REVENUES:
Interest revenue
$
221,000
$
221,000
$
722,571
$
501,571
Total revenues
221,000
221,000
722,571
501,571
EXPENDITURES:
General government
4,475,700
2,150,687
2,195,781
(45,094)
Capital outlay
3,440,800
3,472,797
1,347,241
2,125,556
Total expenditures
7,916,500
5,623,484
3,543,022
2,080,462
Excess (deficiency) of revenues over expenditures
(7,695,500)
(5,402,484)
(2,820,451)
2,582,033
OTHER FINANCING SOURCES (USES):
Transfers in
4,621,290
4,621,290
4,632,604
11,314
Total other financing sources (uses)
4,621,290
4,621,290
4,632,604
11,314
Net change in fund balance
(3,074,210)
(781,194)
1,812,153
2,593,347
Fund balance, July 1, 2024
9,825,538
9,825,538
9,825,538
—
Fund balance, June 30, 2025
$
6,751,328
$
9,044,344
$ 11,637,691
$
2,593,347
134
City of Chandler
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual -
Municipal Arts Capital Projects
For the year ended June 30, 2025
Non-GAAP
Over
Budgeted Amounts
Actual
(Under)
Original
Final
Amounts
Final Budget
REVENUES:
Interest revenue
$
17,000
$
17,000
$
48,539
$
31,539
Total revenues
17,000
17,000
48,539
31,539
EXPENDITURES:
General government
620,000
710,000
289,578
420,422
Total expenditures
620,000
710,000
289,578
420,422
Net change in fund balance
(603,000)
(693,000)
(241,039)
451,961
Fund balance, July 1, 2024
991,736
991,736
991,736
—
Fund balance, June 30, 2025
$
388,736
$
298,736
$
750,697
$
451,961
135
136
City of Chandler
Non-Major Proprietary Funds
Solid Waste
Used to account for the provision of solid waste (refuse) services to the residential customers of the city. All
activities necessary to provide such service are accounted for in this fund.
Airport
Used to account for the provision of airport services at the city's municipal airport. All activities necessary to
provide such service are accounted for in this fund, including but not limited to administration, operation,
maintenance, financing and related debt service, billing and collection.
Chandler Housing Authority
Used to account for expenditures of the city's housing assistance programs which consist of housing owned
and operated by the city and rent subsidy payments to private sector owners of dwelling units. Financing for
this fund is derived from tenants and the United States Department of Housing and Urban Development.
137
City of Chandler
Combining Statement of Net Position -
Non-Major Proprietary Funds
June 30, 2025
Chandler
Total Other
Housing
Proprietary
Solid Waste
Airport
Authority
Funds
ASSETS
Current assets:
Equity in pooled cash and investments
$ 25,754,786 $
252,456
$ 12,306,946 $ 38,314,188
Accounts receivable
2,572,835
287
138,698
2,711,820
Due from other governments
—
—
5,156,323
5,156,323
Inventories
—
15,189
—
15,189
Prepaid invoices
160,989
—
—
160,989
Accrued interest receivable
159,920
—
74,098
234,018
Other receivables
—
—
65,020
65,020
Total current assets
28,648,530
267,932
17,741,085
46,657,547
Long-term assets:
Notes receivable
—
—
5,154,750
5,154,750
Leases receivable
—
3,768,438
—
3,768,438
Capital assets:
Non-depreciable
8,588,023
22,246,486
1,889,957
32,724,466
Depreciable, net
4,987,987
11,635,173
6,206,079
22,829,239
Total capital assets
13,576,010
33,881,659
8,096,036
55,553,705
Total long-term assets
13,576,010
37,650,097
13,250,786
64,476,893
Total assets
42,224,540
37,918,029
30,991,871
111,134,440
DEFERRED OUTFLOWS OF RESOURCES
Deferred outflows of OPEB and pension plan items
498,173
311,265
560,800
1,370,238
138
LIABILITIES
Current liabilities:
Accounts payable
1,664,944
139,689
5,043,666
6,848,299
Accrued payroll
87,754
32,330
—
120,084
Trust liabilities and deposits
—
94,770
1,182,927
1,277,697
Customer advances
183,786
33,472
46,607
263,865
Compensated absences payable
108,000
28,934
62,829
199,763
Landfill closure and postclosure liability
94,446
—
—
94,446
Total current liabilities
2,138,930
329,195
6,336,029
8,804,154
Long-term liabilities:
Compensated absences payable
100,544
44,157
67,446
212,147
Notes payable
—
—
5,000,000
5,000,000
Net pension liability
1,010,711
1,226,824
2,190,062
4,427,597
OPEB liability
685,620
237,389
760,051
1,683,060
Landfill closure and postclosure liability
4,245,554
—
—
4,245,554
Total long-term liabilities
6,042,429
1,508,370
8,017,559
15,568,358
Total liabilities
8,181,359
1,837,565
14,353,588
24,372,512
DEFERRED INFLOWS OF RESOURCES
Deferred inflows of OPEB and pension plan items
352,424
85,618
367,630
805,672
Deferred inflows of leases
—
3,617,857
—
3,617,857
Total deferred inflows of resources
352,424
3,703,475
367,630
4,423,529
NET POSITION
Net investment in capital assets
11,915,466
33,743,591
8,096,036
53,755,093
Unrestricted
22,273,464
(1,055,337)
8,735,417
29,953,544
Total net position
$ 34,188,930 $ 32,688,254 $ 16,831,453 $ 83,708,637
139
140
City of Chandler
Combining Statement of Revenues, Expenses and Changes in Net Position -
Non-Major Proprietary Funds
For the year ended June 30, 2025
Chandler
Total Other
Housing
Proprietary
Solid Waste
Airport
Authority
Funds
OPERATING REVENUES:
Service fees
$ 19,942,908
$
1,214,124
$
65,345
$ 21,222,377
Grants and entitlements
—
—
17,882,587
17,882,587
Rentals
—
—
1,978,022
1,978,022
Sales taxes
—
21,236
—
21,236
Miscellaneous
250
15,420
1,783,682
1,799,352
Total operating revenues
19,943,158
1,250,780
21,709,636
42,903,574
OPERATING EXPENSES:
General and administrative
1,303,006
100,000
—
1,403,006
Personnel services
2,322,387
910,737
2,424,154
5,657,278
Contractual services
14,293,556
269,216
1,040,499
15,603,271
Commodities
1,085,735
221,775
5,767,028
7,074,538
Housing assistance payments
—
—
11,275,880
11,275,880
Depreciation and amortization expense
612,594
776,734
678,606
2,067,934
Total operating expenses
19,617,278
2,278,462
21,186,167
43,081,907
OPERATING INCOME (LOSS)
325,880
(1,027,682)
523,469
(178,333)
NONOPERATING REVENUES (EXPENSES):
Interest revenue
1,463,730
92,231
613,450
2,169,411
Gain (loss) on disposal of capital assets
(25,000)
(7,000)
4,050
(27,950)
Total nonoperating revenues (expenses)
1,438,730
85,231
617,500
2,141,461
INCOME (LOSS) BEFORE CAPITAL CONTRIBUTIONS AND TRANSFERS
1,764,610
(942,451)
1,140,969
1,963,128
CAPITAL CONTRIBUTION AND TRANSFERS:
Capital contributions
—
177,958
—
177,958
Transfers in
—
1,930,086
431,000
2,361,086
Transfers out
(117,315)
(35,041)
—
(152,356)
Total capital contributions and transfers
(117,315)
2,073,003
431,000
2,386,688
CHANGE IN NET POSITION
1,647,295
1,130,552
1,571,969
4,349,816
NET POSITION
Beginning of year
32,541,635
31,557,702
15,259,484
79,358,821
End of year
$ 34,188,930
$ 32,688,254
$ 16,831,453
$ 83,708,637
141
City of Chandler
Combining Statement of Cash Flows -
Non-Major Proprietary Funds
For the year ended June 30, 2025
Chandler
Total Other
Housing
Proprietary
Solid Waste
Airport
Authority
Funds
CASH FLOWS FROM OPERATING ACTIVITIES:
Cash received from customers
$
19,836,570
$
1,225,039
$
(1,137,843) $
19,923,766
Cash received from grantors
—
—
12,743,647
12,743,647
Cash payments to suppliers
(16,189,046)
(538,773)
(8,058,935)
(24,786,754)
Cash payments to employees for services
(2,221,382)
(889,295)
(2,352,413)
(5,463,090)
Net cash provided (used) by operating activities
1,426,142
(203,029)
1,194,456
2,417,569
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES:
Transfers in
—
1,930,086
431,000
2,361,086
Transfers out
(117,315)
(35,041)
—
(152,356)
Net cash provided (used) by noncapital financing activities
(117,315)
1,895,045
431,000
2,208,730
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES:
Acquisition and construction of capital assets
(2,066,543)
(1,723,905)
(449,720)
(4,240,168)
Net cash provided (used) by capital and related financing activities
(2,066,543)
(1,723,905)
(449,720)
(4,240,168)
CASH FLOWS FROM INVESTING ACTIVITIES:
Investment income
1,440,918
92,231
596,804
2,129,953
Net cash provided (used) by investing activities
1,440,918
92,231
596,804
2,129,953
Net increase (decrease) in cash and cash equivalents
683,202
60,342
1,772,540
2,516,084
CASH AND CASH EQUIVALENTS:
Beginning of year
25,071,584
192,114
10,534,406
35,798,104
End of year
$
25,754,786
$
252,456
$
12,306,946
$
38,314,188
142
RECONCILIATION OF OPERATING INCOME (LOSS) TO NET
CASH PROVIDED (USED) BY OPERATING ACTIVITIES:
Operating income (loss)
$
325,880
$
(1,027,682) $
523,469
$
(178,333)
Adjustments to reconcile operating income (loss) to net
cash provided (used) by operating activities:
Depreciation and amortization
612,594
776,734
678,606
2,067,934
Changes in assets, liabilities and deferred items:
(Increase) decrease in receivables
(82,558)
107,444
(5,075,929)
(5,051,043)
(Increase) decrease in due from other governments
—
—
(5,138,940)
(5,138,940)
(Increase) decrease in inventories
—
(2,216)
—
(2,216)
(Increase) decrease in prepaid items
(66,802)
—
—
(66,802)
Increase (decrease) in payables
560,053
54,434
5,024,472
5,638,959
Increase (decrease) in long-term notes payable
—
—
5,000,000
5,000,000
Increase (decrease) in accrued payroll and compensated absences
83,069
21,849
52,628
157,546
Increase (decrease) in deposits
—
10,104
78,516
88,620
Increase (decrease) in customer advances
(24,030)
(1,702)
32,521
6,789
Increase (decrease) in net pension items
(17,914)
(15,797)
(18,049)
(51,760)
Increase (decrease) in OPEB liability
35,850
15,390
37,162
88,402
Increase (decrease) in lease deferred inflows
—
(141,587)
—
(141,587)
Total adjustments
1,100,262
824,653
670,987
2,595,902
Net cash provided (used) by operating activities
$
1,426,142
$
(203,029) $
1,194,456
$
2,417,569
NONCASH INVESTING, CAPITAL AND FINANCING ACTIVITIES:
Contributions of capital assets from city government
$
—
$
177,958
$
—
$
177,958
Gain (loss) on disposal of capital assets
(25,000)
(7,000)
4,050
(27,950)
143
144
3
Strategic infrastructure investments
that facilitate business and
economic growth are paired with
facility, park and public safety
improvements that support the
quality of life enjoyed by residents.
Statistical Section
•
Financial Trends
•
Revenue Capacity
•
Debt Capacity
•
Demographic and Economic Information
•
Operating Information
Statistical Section
Statistical Section
CITY OF CHANDLER, ARIZONA
Statistical Section
This part of the City of Chandler’s annual comprehensive financial report presents detailed information as a
context for understanding what the information in the financial statements, note disclosures, and required
supplementary information says about the city’s overall financial health.
Contents
Page
Financial Trends
146
Schedules 1-6 contain information to help the reader understand how the city’s
financial performance and well-being have changed over time.
Revenue Capacity
162
Schedules 7-9 contain information to help the reader assess the factors affecting the
city's ability to generate its sales and use tax.
Debt Capacity
166
Schedules 10-13b present information to help the reader assess the affordability of
the city's current levels of outstanding debt and the city's ability to issue additional
debt in the future. Schedules 14-29 provide additional information for continuing
disclosure purposes.
Demographic and Economic Information
189
Schedules 30-31 offer demographic and economic indicators to help the reader
understand the environment within which the city's financial activities take place
and to help make comparisons over time and with other governments.
Operating Information
192
Schedules 32-34 contain information about the city’s operations and resources to
help the reader understand how the city's financial information relates to the
services the city provides and the activities it performs.
Sources: Unless otherwise noted, the information in these schedules is derived from the annual
comprehensive financial reports for the relevant year.
145
CITY OF CHANDLER, ARIZONA
NET POSITION BY COMPONENT
LAST TEN FISCAL YEARS
(accrual basis of accounting)
Fiscal Year
2016
2017
2018
2019
Governmental activities
Net investment in capital assets
$
579,591,241
$
587,213,640
$
536,086,249
$
575,953,033
Restricted
121,767,847
122,006,140
168,510,855
173,490,725
Unrestricted
(5,872,464)
(36,358,845)
(65,575,548)
(72,592,489)
Total governmental activities net
position
695,486,624
672,860,935
639,021,556
676,851,269
Business-type activities
Net investment in capital assets
342,252,306
439,823,546
467,799,036
481,911,949
Restricted
31,365,801
32,977,926
33,447,434
31,523,149
Unrestricted
258,806,679
176,390,803
243,735,547
249,131,813
Total business-type activities net
position
632,424,786
649,192,275
744,982,017
762,566,911
Primary government
Net investment in capital assets
921,843,547
1,027,037,186
1,003,885,285
1,057,864,982
Restricted
153,133,648
155,184,734
201,958,289
205,013,874
Unrestricted
252,934,215
139,831,290
178,159,999
176,539,324
Total primary government net
position
$ 1,327,911,410
$ 1,322,053,210
$ 1,384,003,573
$1,439,418,180
146
Schedule 1
Fiscal Year
2020
2021
2022
2023
2024
2025
$
547,511,826
$
555,107,220
$
536,775,941
$
555,568,147
$
572,110,660
$
614,855,681
191,839,529
189,214,016
194,380,531
182,068,932
251,642,729
166,710,948
(8,655,932)
(6,761,531)
63,657,816
168,391,045
170,645,342
307,806,909
730,695,423
737,559,705
794,814,288
906,028,124
994,398,731
1,089,373,538
477,329,239
458,616,595
473,953,519
514,595,066
526,875,770
597,070,834
33,750,526
32,154,205
31,745,566
31,119,667
28,190,997
33,158,230
267,005,635
299,755,652
283,463,157
250,938,753
264,141,654
206,820,231
778,085,400
790,526,452
789,162,242
796,653,486
819,208,421
837,049,295
1,024,841,065
1,013,723,815
1,010,729,460
1,070,163,213
1,098,986,430
1,211,926,515
225,590,055
221,368,221
226,126,097
213,188,599
279,833,726
199,869,178
258,349,703
292,994,121
347,120,973
419,329,798
434,786,996
514,627,140
$1,508,780,823
$1,528,086,157
$1,583,976,530
$1,702,681,610
$1,813,607,152
$ 1,926,422,833
147
CITY OF CHANDLER, ARIZONA
CHANGES IN NET POSITION
LAST TEN FISCAL YEARS
(accrual basis of accounting)
Fiscal Year
2016
2017
2018
2019
Expenses
Governmental activities:
General government
$
112,514,903
$
104,998,802
$
113,587,478
$
114,373,302
Public safety
111,568,323
149,366,614
112,371,723
124,906,187
Transportation and development
55,012,081
56,752,197
55,287,494
53,806,473
Community services
31,441,019
32,599,549
36,824,102
36,990,853
Interest and fiscal charges
7,884,146
6,623,830
6,716,119
7,046,655
Total governmental activities
expenses
318,420,472
350,340,992
324,786,916
337,123,470
Business-type activities:
Water
54,075,742
63,236,746
61,513,990
58,297,769
Wastewater
51,034,921
58,112,931
60,605,779
61,218,775
Solid waste
13,925,017
14,380,178
14,531,558
15,221,985
Airport
2,011,880
1,893,830
1,841,718
2,038,417
Chandler housing authority
7,267,806
7,728,876
8,109,635
8,478,235
Total business-type activities
expenses
128,315,366
145,352,561
146,602,680
145,255,181
Total primary government expenses
$
446,735,838
$
495,693,553
$
471,389,596
$
482,378,651
148
Schedule 2a
Fiscal Year
2020
2021
2022
2023
2024
2025
$
138,850,297
$
162,849,542
$
157,127,919
$
195,086,875
$
185,864,611
$
158,427,128
109,544,169
122,146,366
104,673,550
95,958,948
158,894,534
158,185,614
59,777,330
58,847,053
56,403,523
60,990,970
59,823,718
74,087,692
38,195,563
39,565,719
41,563,661
45,928,371
43,606,131
48,423,518
6,885,184
6,653,197
6,014,168
5,292,655
5,935,673
6,382,171
353,252,543
390,061,877
365,782,821
403,257,819
454,124,667
445,506,123
60,330,758
62,049,102
61,264,619
75,887,686
69,667,817
63,443,736
66,788,084
62,753,454
63,037,577
63,849,518
70,135,806
78,455,540
16,522,728
17,040,309
16,727,814
17,278,664
19,412,684
19,642,278
2,382,288
2,186,724
1,956,786
2,209,135
2,873,143
2,285,462
8,710,570
9,207,531
9,955,131
10,877,168
14,220,801
21,186,167
154,734,428
153,237,120
152,941,927
170,102,171
176,310,251
185,013,183
$
507,986,971
$
543,298,997
$
518,724,748
$
573,359,990
$
630,434,918
$
630,519,306
149
CITY OF CHANDLER, ARIZONA
CHANGES IN NET POSITION
LAST TEN FISCAL YEARS
(accrual basis of accounting)
Fiscal Year
2016
2017
2018
2019
Program Revenues
Governmental activities:
Charges for services:
General government
$ 42,021,638
$ 41,400,079
$ 43,089,930 $ 43,622,807
Public safety
7,471,344
6,561,052
6,100,584
4,998,779
Transportation and development
16,538,175
16,333,273
17,145,894
14,869,670
Community services
10,792,114
10,732,351
9,180,276
7,583,513
Operating grants and contributions
5,188,787
4,481,750
3,988,629
4,522,345
Capital grants and contributions
16,725,462
9,702,683
9,340,818
10,510,464
Total governmental activities program
revenues
98,737,520
89,211,188
88,846,131
86,107,578
Business-type activities:
Charges for services:
Water
50,483,097
53,251,020
54,031,592
52,459,720
Wastewater
51,321,346
53,563,934
56,367,650
56,055,131
Solid waste
14,940,591
15,648,992
16,307,409
16,107,922
Airport
946,419
950,294
963,827
906,557
Chandler housing authority
946,408
954,070
1,085,013
1,155,430
Operating grants and contributions
5,784,021
6,198,797
6,350,858
7,224,669
Capital grants and contributions
32,690,364
27,645,932
22,360,158
18,335,155
Total business-type activities program
revenues
157,112,246
158,213,039
157,466,507 152,244,584
Total primary government program
revenues
$ 255,849,766
$ 247,424,227
$ 246,312,638 $ 238,352,162
Net (expense)/revenue
Governmental activities
$ (219,682,952) $ (261,129,804) $ (235,940,785) $ (251,015,892)
Business-type activities
28,796,880
12,860,478
10,863,827
6,989,403
Total primary government net (expense)
$ (190,886,072) $ (248,269,326) $ (225,076,958) $ (244,026,489)
150
Schedule 2b
Fiscal Year
2020
2021
2022
2023
2024
2025
$
43,203,865
$
42,011,670
$
42,734,281
$
37,240,071
$
41,272,767
$
47,456,873
6,512,002
5,073,984
5,714,382
5,723,124
6,804,298
5,905,414
16,420,652
14,266,302
13,044,002
22,869,091
12,947,005
19,901,334
5,623,796
5,437,401
6,033,727
14,900,747
15,537,533
16,899,044
31,052,185
18,694,567
17,863,747
26,999,694
13,304,466
4,600,440
18,714,457
16,573,341
18,678,027
16,237,742
16,299,587
17,284,480
121,526,957
102,057,265
104,068,166
123,970,469
106,165,656
112,047,585
54,722,296
58,755,999
54,911,138
53,415,725
57,606,344
59,970,840
61,531,949
61,971,940
61,109,393
60,884,259
63,309,459
61,594,681
16,757,829
17,480,050
17,629,367
18,449,086
19,256,732
19,942,908
880,194
893,268
813,683
930,969
1,174,463
1,214,124
1,188,570
1,262,966
1,415,794
1,638,902
1,752,882
2,043,367
7,137,950
7,965,078
8,598,756
9,124,544
12,460,952
17,882,587
14,190,016
14,355,873
12,887,544
13,482,347
28,318,640
17,074,215
156,408,804
162,685,174
157,365,675
157,925,832
183,879,472
179,722,722
$
277,935,761
$
264,742,439
$
261,433,841
$
281,896,301
$
290,045,128
$
291,770,307
$ (231,725,586) $ (288,004,612) $ (261,714,655) $ (279,287,350) $ (347,959,011) $ (333,458,538)
1,674,376
9,448,054
4,423,748
(12,176,339)
7,569,221
(5,290,461)
$ (230,051,210) $ (278,556,558) $ (257,290,907) $ (291,463,689) $ (340,389,790) $ (338,748,999)
151
CITY OF CHANDLER, ARIZONA
CHANGES IN NET POSITION
LAST TEN FISCAL YEARS
(accrual basis of accounting)
Fiscal Year
2016
2017
2018
2019
Governmental Revenues and
Other Changes in Net Position
Governmental activities:
Property taxes
$
29,214,103
$
29,837,763
$
30,816,495
$
32,550,250
Sales taxes
112,250,883
120,189,651
127,584,410
139,851,355
Highway user taxes
15,303,635
16,683,743
16,135,949
17,301,902
Other taxes
6,100,475
664,616
940,203
866,267
Franchise fees
3,344,817
3,285,267
3,571,744
3,567,184
State shared
60,712,442
65,924,228
64,723,211
67,156,430
Investment income
3,834,840
1,063,997
1,531,766
14,822,135
Miscellaneous
1,124,559
1,014,665
1,502,418
1,261,279
Transfers in (out)
(433,282)
(159,815)
(4,175,579)
(90,680)
Total governmental activities
231,452,472
238,504,115
242,630,617
277,286,122
Business-type activities:
Sales taxes
10,391
10,682
13,769
17,347
Investment income
2,180,447
938,491
854,848
7,742,589
Miscellaneous
2,632,460
2,798,023
14,923,212
2,842,825
Transfers in (out)
433,282
159,815
4,175,579
90,680
Total business-type activities:
5,256,580
3,907,011
19,967,408
10,693,441
Total primary government
$
236,709,052
$
242,411,126
$
262,598,025
$
287,979,563
Change in Net Position
Governmental activities
$
11,769,520
$
(22,625,689) $
6,689,832
$
26,270,230
Business-type activities
34,053,460
16,767,489
30,831,235
17,682,844
Total primary government
$
45,822,980
$
(5,858,200) $
37,521,067
$
43,953,074
152
Schedule 2c
Fiscal Year
2020
2021
2022
2023
2024
2025
$
34,419,182
$
36,371,978
$
39,560,904
$
41,363,544
$
42,508,632
$
44,321,587
140,644,918
157,513,686
182,028,630
210,027,766
208,766,241
207,605,337
16,996,911
18,108,310
19,460,326
20,835,558
21,430,580
21,880,284
1,153,237
2,226,568
2,210,634
201,799
—
—
3,441,225
3,823,524
3,861,042
3,838,738
3,691,281
3,245,696
70,769,943
80,699,253
87,038,075
108,187,240
133,384,945
117,646,741
16,951,295
584,026
(15,954,424)
5,427,207
25,508,647
32,989,892
2,085,020
1,820,520
1,916,550
1,380,596
2,109,152
1,809,952
(891,991)
105,991
(1,103,279)
(761,263)
(1,069,860)
(1,066,144)
285,569,740
301,253,856
319,018,458
390,501,185
436,329,618
428,433,345
15,521
16,516
21,379
22,063
23,363
21,236
9,974,135
249,448
(7,617,417)
3,832,676
10,854,527
12,606,364
2,962,466
2,833,025
2,811,515
15,051,582
3,033,563
9,437,591
891,991
(105,991)
1,103,279
761,263
1,069,860
1,066,144
13,844,113
2,992,998
(3,681,244)
19,667,584
14,981,313
23,131,335
$
299,413,853
$
304,246,854
$
315,337,214
$
410,168,769
$
451,310,931
$
451,564,680
$
53,844,154
$
13,249,244
$
57,303,803
$
111,213,835
$
88,370,607
$
94,974,807
15,518,489
12,441,052
742,504
7,491,245
22,554,935
17,840,874
$
69,362,643
$
25,690,296
$
58,046,307
$
118,705,080
$
110,925,542
$
112,815,681
153
CITY OF CHANDLER, ARIZONA
FUND BALANCES OF GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS
(modified accrual basis of accounting)
Fiscal Year
2016
2017
2018
2019
General fund
Nonspendable
$
907,594
$
979,446
$
813,143
$
866,239
Restricted
1,566,618
1,451,061
1,980,807
2,179,767
Assigned
109,958,162
101,620,277
116,359,633
131,214,214
Unassigned
68,567,835
87,492,981
65,182,337
66,035,760
Total general fund
$
181,000,209
$
191,543,765
$
184,335,920
$
200,295,980
All other governmental funds
Nonspendable
$
—
$
7,422
$
—
$
—
Restricted
120,201,229
120,640,190
166,570,330
171,310,958
Assigned
—
—
—
—
Unassigned
(11,877,159)
(11,350,383)
(2,555,420)
(5,758,986)
Total all other governmental funds
$
108,324,070
$
109,297,229
$
164,014,910
$
165,551,972
154
Schedule 3
Fiscal Year
2020
2021
2022
2023
2024
2025
$
985,396
$
1,051,638
$
1,103,805
$
989,996
$
1,055,004
$
1,028,477
1,710,608
1,711,242
1,324,539
4,317,196
9,786,830
11,592,841
139,326,860
143,763,585
192,983,983
251,787,985
249,554,469
256,561,068
90,887,858
96,065,934
86,626,252
58,838,144
58,553,967
92,173,979
$
232,910,722
$
242,592,399
$
282,038,579
$
315,933,321
$
318,950,270
$
361,356,365
$
—
$
—
$
—
$
—
$
—
$
—
190,128,921
187,759,476
193,055,992
175,323,873
241,855,899
197,647,124
—
—
—
—
514,194
—
(7,697,792)
(7,226,577)
(2,361,250)
(8,567,291)
(9,554,695)
(15,918,864)
$
182,431,129
$
180,532,899
$
190,694,742
$
166,756,582
$
232,815,398
$
181,728,260
155
CITY OF CHANDLER, ARIZONA
GOVERNMENTAL FUNDS REVENUES
LAST TEN FISCAL YEARS
(modified accrual basis of accounting)
Fiscal Year
2016
2017
2018
2019
Property taxes
$
29,237,607
$
29,692,846
$
30,819,812
$
32,526,357
Sales taxes
112,250,883
120,189,651
127,584,410
139,851,355
Highway user taxes
15,303,635
16,683,743
16,135,949
17,301,902
Other taxes
6,100,475
664,616
940,203
866,267
Franchise fees
3,344,817
3,285,267
3,571,744
3,567,184
State shared revenues
60,712,442
65,924,228
64,723,211
67,156,430
Grants and entitlements
16,159,064
12,677,860
12,111,857
11,911,639
System development fees
16,217,004
14,683,327
13,982,674
9,023,678
Special assessments
606,757
607,191
611,499
610,501
Licenses and permits
6,634,161
7,075,996
6,394,322
7,268,592
Charges for services
19,705,786
20,869,517
21,827,375
21,512,737
Fines and forfeitures
4,828,174
3,908,387
4,865,783
4,234,286
Rentals
974,192
678,387
127,575
127,206
Contributions
200,000
200,000
200,000
200,000
Interest revenue
3,409,065
921,195
1,398,729
13,268,020
Miscellaneous
897,102
494,984
974,107
923,369
Total revenues
$
296,581,164
$
298,557,195
$
306,269,250
$
330,349,523
156
Schedule 4
Fiscal Year
2020
2021
2022
2023
2024
2025
$
34,334,216
$
36,409,345
$
39,540,557
$
41,404,976
$
42,449,846
$
44,578,637
140,644,918
157,513,686
182,028,630
210,027,766
208,766,241
207,605,337
16,996,911
18,108,310
19,460,326
20,835,558
21,430,580
21,880,284
1,153,237
2,226,568
2,210,634
201,799
—
—
3,441,225
3,823,524
3,861,042
3,838,738
3,691,281
3,245,696
70,769,943
80,699,253
87,038,075
108,187,240
133,384,945
117,646,741
49,719,415
29,417,028
36,022,070
38,834,325
25,098,601
21,597,228
8,730,973
8,207,728
5,031,031
8,235,336
2,277,282
3,216,916
508,485
587,020
610,719
565,411
—
—
7,760,403
6,656,737
6,915,745
8,754,471
5,103,244
13,820,770
20,355,702
19,631,389
22,565,072
27,125,038
28,528,858
30,277,443
5,571,322
2,920,173
3,439,778
4,420,532
5,022,282
4,883,058
213,345
174,766
119,710
253,543
138,115
137,707
596,153
5,201,737
254,874
1,040,240
2,145,416
—
15,017,352
533,383
(14,687,606)
4,864,418
22,749,651
29,032,879
1,471,977
1,105,070
1,310,929
1,047,372
1,385,085
950,365
$
377,285,577
$
373,215,717
$
395,721,586
$
479,636,763
$
502,171,427
$
498,873,061
157
CITY OF CHANDLER, ARIZONA
GOVERNMENTAL FUNDS EXPENDITURES AND DEBT SERVICE RATIO
LAST TEN FISCAL YEARS
(modified accrual basis of accounting)
Fiscal Year
2016
2017
2018
2019
General government
$ 52,138,384
$ 50,892,490
$ 55,706,708
$ 58,070,201
Public safety
104,605,663
103,167,906
109,736,277
111,496,663
Transportation and development
25,471,154
28,294,221
27,750,365
25,871,080
Community services
24,988,844
26,605,279
27,088,640
27,712,871
Capital improvements
50,009,243
44,712,255
71,268,257
69,006,722
Debt service:
Principal retirement
17,465,000
25,240,000
(1)
20,264,000
22,820,000
Interest and fiscal charges
8,635,631
7,689,305
7,918,081
8,270,161
Bond issuance costs
—
249,838
252,611
—
Total expenditures
$ 283,313,919
$ 286,851,294
$ 319,984,939
$ 323,247,698
Debt service as a percentage of
noncapital expenditures
10.2 %
12.9 %
10.4 %
11.2 %
158
Schedule 5
Fiscal Year
2020
2021
2022
2023
2024
2025
$
79,624,174
$
93,482,842
$
90,412,233
$ 124,221,582
$ 152,828,556
$
99,512,608
113,166,600
119,357,759
123,991,198
137,400,323
150,796,686
155,354,545
30,117,735
63,281,132
27,995,477
33,058,041
41,619,646
44,800,181
28,344,665
29,084,081
30,855,014
35,906,234
34,170,930
39,299,192
77,024,413
61,907,124
63,832,358
85,239,000
123,417,836
106,599,297
21,340,000
19,980,000
32,887,716
34,892,929
35,206,853
40,308,466
8,073,320
7,801,885
7,102,529
6,561,091
7,752,226
8,757,687
319,631
—
401,284
—
399,177
—
$ 358,010,538
$ 394,894,823
$ 377,477,809
$ 457,279,200
$ 546,191,910
$ 494,631,976
9.7 %
7.8 %
11.7 %
10.5 %
9.2 %
12.8 %
159
CITY OF CHANDLER, ARIZONA
OTHER FINANCING SOURCES AND USES AND NET CHANGES IN FUND BALANCE -
GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS
(modified accrual basis of accounting)
Fiscal Year
2016
2017
2018
2019
Other Financing Sources (Uses)
Bond premium
$
— $
6,339,230 $
3,609,365 $
—
Face amount of bonds issued
—
25,500,000
58,740,000
—
Proceeds from disposal of capital
assets
463,709
652,882
213,829
1,356,796
Payment to escrow agent
—
(31,589,392)
—
—
SBITA agreements
—
—
—
—
Transfers in
27,885,557
28,116,369
46,032,351
45,484,505
Transfers out
(29,252,060)
(29,208,275)
(47,370,020)
(48,005,487)
Total other financing sources (uses)
(902,794)
(189,186)
61,225,525
(1,164,186)
Net change in fund balance
$
12,364,451 $
11,516,715 $
47,509,836 $
5,937,639
160
Schedule 6
Fiscal Year
2020
2021
2022
2023
2024
2025
$
2,927,904
$
—
$
2,160,918
$
—
$
12,299,180
$
—
30,400,000
—
58,244,909
—
106,415,000
—
396,924
225,081
1,566,455
3,229,367
428,163
573,416
—
—
(26,716,745)
—
—
—
—
—
—
—
6,202,462
508,116
39,282,296
44,961,787
28,249,623
45,052,169
53,550,080
53,525,439
(42,788,264)
(47,364,881)
(32,091,700)
(58,254,654)
(68,226,500)
(67,529,099)
30,218,860
(2,178,013)
31,413,460
(9,973,118)
110,668,385
(12,922,128)
$
49,493,899
$
7,783,447
$
49,657,237
$
12,384,445
$
66,647,902
$
(8,681,043)
161
CITY OF CHANDLER, ARIZONA
TAXABLE REVENUE BY CATEGORY
LAST TEN FISCAL YEARS
Fiscal Year
2016
2017
2018
2019
(3)
Amusements
$
1,019,939
$
1,019,938
$
1,083,161
$
1,318,195
Contracting
8,855,057
11,496,791
12,388,978
17,228,786
General Retail
51,191,162
53,137,169
56,605,561
60,029,293
Hotel/Motel
2,957,685
3,424,279
3,712,085
4,099,450
Miscellaneous Related Revenue (1)
2,745,130
2,527,981
2,328,030
1,757,235
Publishing
248,433
186,862
182,820
207,462
Rentals - Personal Property
3,125,459
3,611,180
3,676,196
4,076,298
Rentals - Real Property
13,217,561
13,647,156
15,134,275
16,506,671
Restaurant/Bar
10,752,479
11,341,714
11,872,941
12,773,198
Telecommunications
3,234,369
2,796,065
2,395,673
2,191,747
Use Tax
1,127,257
3,619,340
4,394,129
5,461,771
Proposition 207
—
—
—
—
Utilities
13,786,741
13,391,857
13,824,331
14,218,596
Total Sales and Use Taxes
$ 112,261,272
$ 120,200,332
$ 127,598,180
$ 139,868,702
City Direct Sales Tax Rate (2)
1.76%
1.75%
1.74%
1.74%
Source: City of Chandler, Management Services Department
(1) Includes license application fees, annual license fees, audit assessments, penalties and interest.
(2) The direct tax rate was calculated using a weighted average of the actual revenues collected for each
category. Tax rates vary by category, currently ranging from 1.5% to 4.4%.
(3) In Fiscal Year 2018-19, the city did a restatement to record prior year privilege tax receivables not
previously accrued; prior years have not been restated.
(4) In Fiscal Year 2021-22, the city did a restatement due to a utility customer being overbilled; prior years
have not been restated.
162
Schedule 7
Fiscal Year
2020
2021
2022
2023
2024
2025
$
972,105
$
789,411
$
1,348,862
$
1,499,745
$
1,718,299
$
1,977,892
12,824,214
14,446,470
17,894,817
27,424,398
24,868,144
19,415,528
64,911,529
75,590,425
85,823,599
95,481,330
94,343,374
99,101,378
3,560,787
3,215,504
5,980,467
6,797,429
6,773,059
6,730,908
1,710,004
2,152,443
3,983,534
5,338,248
4,087,085
3,252,019
177,542
197,578
204,025
217,427
173,156
206,962
4,282,451
3,760,815
4,207,664
5,284,141
7,262,679
6,353,763
18,184,361
19,214,217
20,876,574
23,464,287
24,642,669
19,820,941
11,987,625
13,099,159
16,324,360
17,661,723
18,556,554
18,950,360
2,337,375
1,751,284
1,571,877
1,802,196
2,048,913
1,642,558
5,335,557
7,636,473
6,966,021
6,714,688
4,042,777
7,260,062
—
256,702
1,276,846
1,518,558
1,503,202
1,615,970
14,385,889
15,419,721
15,591,363 (4)
16,845,659
18,769,693
21,298,232
$ 140,669,439
$ 157,530,202
$ 182,050,009
$ 210,049,829
$ 208,789,604
$ 207,626,573
1.73%
1.70%
1.70%
1.68%
1.71%
1.74%
163
CITY OF CHANDLER, ARIZONA
DIRECT AND OVERLAPPING SALES AND USE TAX RATES
LAST TEN FISCAL YEARS
Schedule 8
Overlapping Rates
Tourism
& Sports
City Direct
Maricopa County
State of Arizona
Authority
Fiscal Year
Tax Rate (1)
Tax Rate (2)
Tax Rate (3)
Tax Rate (4)
2016
1.76%
0.67%
4.92%
0.03%
2017
1.75%
0.66%
4.95%
0.03%
2018
1.74%
0.65%
4.92%
0.03%
2019
1.74%
0.65%
4.93%
0.03%
2020
1.73%
0.65%
4.86%
0.03%
2021
1.70%
0.64%
4.90%
0.02%
2022
1.70%
0.65%
4.94%
0.03%
2023
1.68%
0.65%
5.45%
0.03%
2024
1.71%
0.66%
4.93%
0.03%
2025
1.74%
0.66%
5.05%
0.03%
Source: City of Chandler, Management Services Department
(1) The city's direct tax rate was calculated using a weighted average of the actual revenues collected for each
category. Tax rates vary by category, currently ranging from 1.5% to 4.4%. City tax rates were last increased
effective May 1, 1994.
(2) The overlapping County tax rate was calculated using a weighted average of the actual revenues the city
collected for each category. Tax rates vary by category, currently ranging from 0.5% to 0.77%. No rate
changes have occurred in the past ten fiscal years.
(3) The overlapping State tax rate was calculated using a weighted average of the actual revenues the city
collected for each category. Tax rates vary by category, currently ranging from 5.5% to 5.6%. State tax rate
increases during the past ten fiscal years: 1.0% effective June 1, 2011 through May 31, 2013.
(4) The Tourism & Sports Authority (TSA) was authorized by Maricopa County voters on November 7, 2000. An
additional tax rate of 1.0% is to be levied from March 1, 2001 through February 28, 2031. The only category
the overlapping tax rate applies to is the Hotel/Motel category. The overlapping tax rate is calculated using a
weighted average of the actual revenues the city collected for this category.
164
CITY OF CHANDLER, ARIZONA
PRINCIPAL SALES AND USE TAXPAYERS
CURRENT YEAR AND TEN YEARS AGO
Schedule 9
Fiscal Year 2025
Fiscal Year 2016
Percentage
Percentage
of Total
of Total
Sales and
Sales and
Sales and
Sales and
Use Tax
Use Tax
Use Tax
Use Tax
Taxpayer
Business Type
Payments
Rank
Payments
Payments
Rank
Payments
Taxpayer A
Utility
$ 17,447,665
1
8.40%
$
10,316,152
1
9.19%
Taxpayer B
Construction
Contracting
7,245,136
2
3.48%
Taxpayer C
Department Store
5,546,415
3
2.67%
3,800,880
2
3.39%
Taxpayer D
Retailer
4,533,891
4
2.18%
Taxpayer E
Department Store
3,891,118
5
1.87%
2,056,347
4
1.83%
Taxpayer F
Grocery Store
3,517,797
6
1.69%
2,304,583
3
2.05%
Taxpayer G
Retailer
2,786,411
7
1.34%
Taxpayer H
Retailer
2,407,618
8
1.15%
Taxpayer I
Commercial Leasing
2,354,745
9
1.13%
Taxpayer J
Vehicle Dealer
2,248,183
10
1.08%
1,339,282
7
1.19%
Taxpayer K
Home Improvement
1,679,477
5
1.50%
Taxpayer L
Utility
1,343,433
6
1.20%
Taxpayer M
Department Store
1,303,090
8
1.16%
Taxpayer N
Telecommunications
1,302,120
9
1.16%
Taxpayer O
Vehicle Dealer
1,166,884
10
1.04%
$ 51,978,979
25.01%
$
26,612,248
23.71%
Source: City of Chandler, Management Services Department
Note: The identities of the ten largest revenue payers are prohibited from disclosure per state statute.
Alternatively, the business type of the top ten taxpayers for each period has been disclosed along with the
appropriate data.
165
CITY OF CHANDLER, ARIZONA
RATIOS OF OUTSTANDING DEBT
LAST TEN FISCAL YEARS
Schedule 10
Governmental Activities
Special
General
Revenue
Assessment
General
Special
Subscription
Obligation
Bonds
Bonds
Fiscal
Obligation
Revenue
Assessment
Based IT
Bond Issuance
Issuance
Issuance
Year
Bonds
Bonds
Bonds
Arrangements
Premiums
Premiums
Premiums
2016
$
205,088,000
$ 10,055,000
$
3,960,000
$
—
$
15,663,687
$
424,402
$
77,201
2017
186,873,000
6,685,000
3,460,000
—
19,829,438
282,935
66,172
2018
223,288,000
4,270,000
2,940,000
—
21,269,309
141,468
55,140
2019
205,764,000
2,050,000
2,395,000
—
19,097,787
—
44,112
2020
215,939,000
—
1,830,000
—
19,756,588
—
33,084
2021
195,164,000
—
1,245,000
—
17,526,932
—
22,056
2022
208,979,909
—
635,000
—
15,043,211
—
11,028
2023
176,702,193
—
—
482,119
12,825,886
—
—
2024
249,009,159
—
—
4,579,664
22,348,687
—
—
2025
215,907,223
—
—
2,754,337
19,013,255
—
—
Business-type Activities
Excise Tax
General
Revenue
Revenue
General
Excise Tax
Obligation
Bonds
Obligations
Fiscal
Obligation
Revenue
Bond Issuance
Issuance
Issuance
Year
Bonds
Revenue Bonds
Obligations
Premiums
Premiums
Premiums
2016
$
127,782,000
$
24,850,000
$
204,090,000
$
10,630,056
$
832,855
$
8,040,688
2017
115,722,000
9,595,000
198,520,000
12,263,924
624,642
11,447,974
2018
105,707,000
7,845,000
230,635,000
11,025,887
416,428
15,075,185
2019
95,901,000
4,685,000
222,575,000
9,898,570
202,401
17,271,299
2020
86,261,000
2,340,000
228,985,000
8,772,310
—
15,979,766
2021
76,936,000
—
219,780,000
7,647,850
—
15,312,526
2022
70,380,091
—
215,105,000
4,854,030
—
9,667,992
2023
59,712,807
—
202,930,000
4,006,747
—
8,338,191
2024
49,480,841
—
250,405,000
3,159,465
—
16,806,399
2025
39,937,777
—
240,995,000
2,312,181
—
14,973,185
Percentage
Estimated
of Estimated
Less Amount
Actual
Actual
Total
Available in
Net General
Taxable
Taxable
Primary
Percentage
Fiscal
General
Debt
Bonded Debt
Value of
Value of
Government
of Personal
Per
Year
Bonded Debt
Service Fund
Outstanding
Property
Property
(1)
Income (2)
Capita (2)
2016
$ 359,163,743
$ 15,281,782
$ 343,881,961
$ 28,297,114,500
1.09%
$ 614,901,176
7.35%
2,465
2017
334,688,362
8,981,699
325,706,663
28,994,768,811
1.01%
568,997,296
6.20%
2,128
2018
361,290,196
7,451,989
353,838,207
33,312,389,044
1.06%
624,864,531
6.24%
2,267
2019
330,661,357
4,586,562
326,074,795
36,899,750,596
0.88%
578,592,636
5.73%
2,215
2020
330,729,798
4,693,193
326,036,605
40,890,232,930
0.80%
580,768,479
5.45%
2,192
2021
297,274,782
5,758,393
291,516,389
44,808,678,880
0.65%
533,634,364
4.56%
1,905
2022
299,257,241
4,290,154
294,967,087
48,805,511,338
0.60%
524,676,261
3.95%
1,855
2023
253,247,633
2,427,863
250,819,770
61,704,952,635
0.41%
464,997,943
3.29%
1,642
2024
323,998,152
1,646,322
322,351,830
73,058,672,230
0.44%
595,789,215
3.88%
2,052
2025
277,170,436
1,858,177
275,312,259
68,127,314,790
0.40%
535,892,958
3.47%
1,839
Note: Details regarding the city's outstanding debt can be found in the Notes to the Financial Statements.
(1) Includes general bonded debt, other governmental activities debt and business-type activities debt.
(2) Population and personal income data can be found in Schedule 30.
166
CITY OF CHANDLER, ARIZONA
DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT
AS OF JUNE 30, 2025
Schedule 11
Estimated
Estimated Share
Debt
Percentage
of Overlapping
Governmental Unit
Outstanding
Applicable
Debt
Debt repaid with property taxes
State of Arizona
None
4.65 %
None
Maricopa County
None
7.04
None
Maricopa County Community College District
$
26,675,000
7.04
$
1,878,704
Maricopa County Special Healthcare District
512,560,000
7.14
36,588,448
Chandler Unified School District No. 80
164,985,000
28.62
47,219,674
Kyrene Elementary School District No. 28
170,560,000
4.49
7,658,039
Mesa Unified School District No. 4
86,970,000
16.91
14,706,914
Gilbert Unified School District No. 41
344,810,000
75.20
259,312,619
Tempe Union High School District No. 213
91,545,000
16.39
15,002,300
East Valley Institute of Technology
None
14.50
None
Subtotal, overlapping debt
382,366,698
City direct debt
237,674,815
100.00
237,674,815
Total direct and overlapping debt
$
620,041,513
Source: Piper Sandler Companies
Note: The applicable percentage of overlap for each type of debt was computed on the net limited property
assessed valuation as calculated for fiscal year 2024-25 for the overlapping jurisdiction to the amount of such
valuation which lies within the City of Chandler.
167
CITY OF CHANDLER, ARIZONA
LEGAL DEBT MARGIN INFORMATION
LAST TEN FISCAL YEARS
Fiscal Year
2016
2017
2018
2019
6% General Obligation Bond Limitation
Debt limit
$ 190,024,847 $ 198,432,895 $ 209,370,282 $ 232,258,669
Total net debt applicable to limit
9,427,250
8,952,650
14,974,350
12,511,300
Legal debt margin
$ 180,597,597 $ 189,480,245 $ 194,395,932 $ 219,747,369
Total net debt applicable to the limit as a
percentage of the debt limit
4.96%
4.51%
7.15%
5.39%
20% General Obligation Bond Limitation
Debt limit
$ 633,416,159 $ 661,443,986 $ 697,900,943 $ 774,195,564
Total net debt applicable to limit
323,442,750 300,592,650 324,166,628 298,881,202
Legal debt margin
$ 309,973,409 $ 360,851,336 $ 373,734,315 $ 475,314,362
Total net debt applicable to the limit as a
percentage of the debt limit
51.06%
45.44%
46.45%
38.61%
Fiscal Year 2015-16 through Fiscal Year 2018-19: Piper Jaffray Inc.
Fiscal Year 2019-20 through Fiscal Year 2024-25: Piper Sandler Companies
Note: Under Arizona law, cities may issue general obligation bonds for purposes of water, wastewater, artificial light, open
space preserves, parks, public safety and emergency services, streets, transportation, playgrounds and recreational facilities
up to an amount not to exceed 20 percent of secondary assessed valuation. Cities may issue general obligation bonds for
any other purpose up to an amount not to exceed 6 percent of secondary assessed valuation.
168
Schedule 12
Legal Debt Margin Calculation for Fiscal Year 2025
Full Cash Assessed Valuation as of June 30, 2025
$ 6,969,158,207
Debt limit (6% of assessed value)
418,149,492
Debt applicable to limit:
6% general obligation bonds
7,617,900
Excess premium on bonds outstanding
398,354
Legal 6% debt margin
$
410,133,238
Debt limit (20% of assessed value)
$ 1,393,831,641
Debt applicable to limit:
20% general obligation bonds
248,227,100
Excess premium on bonds outstanding
15,601,623
Legal 20% debt margin
$ 1,130,002,918
Fiscal Year
2020
2021
2022
2023
2024
2025
$
258,505,031 $
280,953,536 $
300,769,253 $
376,810,629 $
442,853,589 $
418,149,492
9,772,578
6,759,506
6,121,222
5,522,089
8,911,823
8,016,254
$
248,732,453 $
274,194,030 $
294,648,031 $
371,288,540 $
433,941,766 $
410,133,238
3.78%
2.41%
2.04%
1.47%
2.01%
1.92%
$
861,683,439 $
936,511,789 $ 1,002,564,178 $ 1,256,035,431 $ 1,476,178,631 $ 1,393,831,641
303,956,132
277,073,742
285,874,432
242,278,193
310,555,823
263,828,723
$
557,727,307 $
659,438,047 $
716,689,746 $ 1,013,757,238 $ 1,165,622,808 $ 1,130,002,918
35.27%
29.59%
28.51%
19.29%
21.04%
18.93%
169
CITY OF CHANDLER, ARIZONA
PLEDGED-REVENUE COVERAGE
LAST TEN FISCAL YEARS
Schedule 13a
Street & Highway Revenue Bonds
Less:
Fiscal
Highway User
Operating
Net Available
Debt Service
Year
Taxes
Expenses
Revenue
Principal
Interest
Coverage
2016
$
15,303,635
$
11,951,019
$
3,352,616
$
3,370,000
$
375,650
0.90
2017
16,683,743
10,887,942
5,795,801
2,415,000
256,438
2.17
2018
16,135,949
12,073,072
4,062,877
2,220,000
163,988
1.70
2019
17,301,902
10,724,907
6,576,995
2,050,000
79,200
3.09
2020
(1)
16,996,911
7,500,788
9,496,123
—
—
—
Water Revenue Bonds
Less:
Fiscal
Utility Service
Operating
Net Available
Debt Service
Year
Charges
Expenses
Revenue
Principal
Interest
Coverage
2016
$
50,483,097
$
26,907,780
$
23,575,317
$
8,408,500
$
566,680
2.63
2017
53,251,020
34,188,323
19,062,697
1,750,000
307,160
9.27
2018
54,031,592
35,833,361
18,198,231
2,212,000
219,660
7.48
2019
52,459,720
32,395,325
20,064,395
1,641,500
131,180
11.32
2020
54,722,296
33,556,507
21,165,789
1,638,000
65,520
12.42
2021
(2)
58,755,999
35,088,440
23,667,559
—
—
—
Excise Tax Revenue Obligations
Less:
Fiscal
Excise Tax
Operating
Net Available
Debt Service
Year
Collections
Expenses
Revenue
Principal
Interest
Coverage
2016
$
175,820,443
$
—
$
175,820,443
$
2,805,000
$
7,193,019
17.59
2017
188,910,693
—
188,910,693
4,105,000
8,097,704
15.48
2018
195,500,184
—
195,500,184
6,640,000
8,879,859
12.60
2019
209,259,874
—
209,259,874
6,590,000
9,248,264
13.21
2020
214,706,260
—
214,706,260
9,205,000
9,274,665
11.62
2021
236,712,500
—
236,712,500
10,630,000
9,129,575
11.98
2022
266,906,299
—
266,906,299
12,175,000
7,326,414
13.69
2023
315,153,482
—
315,153,482
12,980,000
6,327,966
16.32
2024
339,503,392
—
339,503,392
9,410,000
6,910,336
20.80
2025
328,638,596
—
328,638,596
15,025,000
8,052,900
14.24
Note: Details regarding the city's outstanding debt can be found in the Notes to the Financial Statements. Operating
expenses do not include interest, depreciation or amortization expenses.
(1) Street and highway revenue bonds matured on 7/1/2019.
(2) Water and sewer revenue bonds matured on 7/1/2020.
170
CITY OF CHANDLER, ARIZONA
PLEDGED-REVENUE COVERAGE
LAST TEN FISCAL YEARS
Schedule 13b
Wastewater Revenue Bonds
Less:
Fiscal
Utility Service
Operating
Net Available
Debt Service
Year
Charges
Expenses
Revenue
Principal
Interest
Coverage
2016
51,321,346
23,054,518
28,266,828
6,846,500
368,470
3.92
2017
53,563,934
23,470,067
30,093,867
—
94,140
319.67
2018
56,367,650
28,967,201
27,400,449
948,000
94,140
26.29
2019
56,055,131
26,507,090
29,548,041
703,500
56,220
38.89
2020
61,531,949
29,092,865
32,439,084
702,000
28,020
44.44
2021 (1)
61,971,940
25,520,769
36,451,171
—
—
—
Note: Details regarding the city's outstanding debt can be found in the Notes to the Financial Statements. Operating
expenses do not include interest, depreciation or amortization expenses.
(1) Water and sewer revenue bonds matured on 7/1/2020.
171
CITY OF CHANDLER, ARIZONA
PROPERTY TAX ASSESSMENT RATIOS
LAST FIVE FISCAL YEARS
Schedule 14
Tax Year
Tax Year
Tax Year
Tax Year
Tax Year
Property Classification
2021
2022
2023
2024
2025
Mining, Utility, Commercial,
and Industrial
18.00 %
17.50 %
17.00 %
16.50 %
16.00 %
Agriculture and Vacant Land
15.00
15.00
15.00
15.00
15.00
Owner-Occupied Residential
10.00
10.00
10.00
10.00
10.00
Leased or Rented Residential
10.00
10.00
10.00
10.00
10.00
Railroad, Private Car, and
Airline Flight Property
15.00
15.00
14.00
14.00
13.00
Source: Piper Sandler Companies as compiled from State and County Abstract of the Assessment Roll (Arizona
Department of Revenue).
172
CITY OF CHANDLER, ARIZONA
PROPERTY TAXES LEVIED AND COLLECTED
LAST FIVE FISCAL YEARS
Schedule 15
Adjusted
to 30 June of Initial Fiscal Year
Tax Rate
Tax Levy
Collections
% of Levy
2024-25
$
1.0826 $
43,981,192 $
43,581,476
99.09 %
2023-24
1.0926
42,198,604
41,767,411
98.98
2022-23
1.1026
40,823,212
40,571,534
99.11
2021-22
1.1126
38,884,287
38,437,588
98.85
2020-21
1.1201
36,379,535
36,041,018
99.07
Source: Piper Sandler Companies as compiled from the Maricopa County Department of Finance.
173
CITY OF CHANDLER, ARIZONA
DIRECT AND OVERLAPPING ASSESSED VALUATIONS AND TAX RATES PER $100 ASSESSED
VALUATION
JUNE 30, 2025
Schedule 16
FY 2024-25 Net
Limited Property
Assessed Valuation
FY 2024-25
Total Tax Rate
per $100
Assessed Valuation
State of Arizona
$
88,425,611,337 $
—
Maricopa County
58,328,686,358
1.1591
Maricopa County Community College District
58,328,686,358
1.1047
Maricopa County Library District
58,328,686,358
0.0470
Maricopa County Flood Control District
53,876,587,196
0.1470
Maricopa County Fire District
58,328,686,358
0.0080
Maricopa County Special Health Care District
57,548,876,687
0.2665
Central Arizona Water Conservation District
57,548,876,687
0.1400
East Valley Institute of Technology District No. 401 (1)
28,325,407,262
0.0500
Chandler Unified School District No. 80
4,104,205,303
5.6564
Tempe Union High School District No. 213
4,742,511,408
2.3628
Kyrene Elementary School District No. 28
2,715,520,368
3.3826
Mesa Unified School District No. 4
4,064,865,288
6.3142
Gilbert Unified School District No. 41
2,865,936,353
5.2795
City of Chandler
4,108,053,847
1.0826
Source: Piper Sandler Companies as compiled from Maricopa County Tax Levy and State and County Abstract
of the Assessment Roll (Arizona Department of Revenue).
(1) Includes Net Limited Property Assessed Value for the East Valley Institute of Technology District No. 401
within Pinal County.
174
CITY OF CHANDLER, ARIZONA
PROPERTY VALUE BY PROPERTY CLASSIFICATION
LAST FIVE FISCAL YEARS
Schedule 17
FY 2020-21 Net
Full Cash
Assessed
Valuation
FY 2021-22 Net
Full Cash
Assessed
Valuation
FY 2022-23 Net
Full Cash
Assessed
Valuation
FY 2023-24 Net
Full Cash
Assessed
Valuation
FY 2024-25 Net
Full Cash
Assessed
Valuation
FY 2024-25
Annual
Percentage
Change
Mining, Utility,
Commercial, and
Industrial
$ 1,412,928,374
$ 1,488,882,870
$ 1,534,793,910
$ 1,800,359,153
$ 2,088,313,938
13.79%
Agriculture and
Vacant Land
77,850,859
76,801,910
72,256,990
82,244,489
98,347,525
16.37%
Owner-Occupied
Residential
1,837,472,779
1,990,237,285
2,135,013,774
2,824,334,410
3,624,687,346
22.08%
Leased or Rented
Residential
847,104,454
946,787,996
1,052,393,288
1,346,567,408
1,645,377,546
18.16%
Railroad, Private
Car, and Airline
Flight Property
2,011,500
2,011,500
2,216,430
3,849,664
4,428,074
0.00%
Historical Property
130,572,188
177,317,246
215,617,419
222,807,895
279,322,237
20.23%
Improvements
located on
Federal, State or
County or
Municipal land
477,042
520,137
529,079
14,138
416,490
96.61%
TOTAL
$ 4,308,417,196
$ 4,682,558,944
$ 5,012,820,890
$ 6,280,177,157
$ 7,740,893,156
23.26%
Source: Piper Sandler Companies as compiled from State and County Abstract of the Assessment Roll (Arizona
Department of Revenue).
175
CITY OF CHANDLER, ARIZONA
NET ASSESSED LIMITED PROPERTY ASSESSED VALUE OF MAJOR TAXPAYERS
JUNE 30, 2025
Schedule 18
Taxpayer
Description
FY 2024-25 Net
Limited
Property
Assessed Value
As % of Total
FY 2024-25 Net
Limited
Property
Assessed
Value
Intel Corporation
Manufacturing Plant
$
310,498,354
7.56%
CI Phoenix-Chandler I -VII LLC
Commercial Construction
33,294,967
0.81
Wells Fargo Bank
Financial Services
25,256,009
0.61
Freescale Semiconductor, Inc.
Manufacturing Plant
18,351,079
0.45
CAZ 7, LLC
Manufacturing Plant
17,248,368
0.42
TWC Chandler, LLC
Commercial Rental Property
15,566,599
0.38
Microchip Technology Inc.
Manufacturing Plant
13,779,610
0.34
Bank of America
Financial Services
12,153,072
0.30
CAZ 1 DE, LLC
Commercial Rental Property
12,110,407
0.29
LIPT West Frye Rd LLC
Commercial Construction
11,131,692
0.27
$
469,390,157
11.43%
Total City Net Limited Property Assessed Valuation
$ 4,108,053,847
Source: Maricopa County Treasurer's Office. Neither the city nor the Financial Advisor have made an
independent determination of the financial position of any of the major taxpayers listed above.
176
CITY OF CHANDLER, ARIZONA
ESTIMATED NET FULL CASH VALUE AND ASSESSED VALUES
LAST FIVE FISCAL YEARS
Schedule 19
Estimated Net Full Cash Value
Fiscal Year
City of Chandler
2024-25
$68,127,314,790
2023-24
73,058,672,230
2022-23
61,704,952,635
2021-22
48,805,511,338
2020-21
44,808,678,880
Source: Property Tax Rates and Assessed Values, Arizona Tax Research Foundation, and the State and County
Abstract of the Assessment Roll (Arizona Department of Revenue).
Comparative Net Limited Property Assessed Value History
Fiscal Year
City of Chandler
Maricopa County
State of Arizona
2024-25
$
4,108,053,847 $
58,328,686,358 $
88,425,611,337
2023-24
3,900,094,692
54,722,310,149
83,026,514,349
2022-23
3,702,957,065
51,575,018,189
78,415,651,028
2021-22
3,463,794,661
48,724,126,672
74,200,233,397
2020-21
3,243,434,243
45,704,969,813
69,914,521,042
Comparative Net Full Cash Assessed Value History
Fiscal Year
City of Chandler
Maricopa County
State of Arizona
2024-25
$
6,969,158,207 $
112,459,810,476 $
158,962,333,751
2023-24
6,280,177,157
91,557,158,472
129,473,530,919
2022-23
5,012,820,890
72,238,314,892
103,872,223,919
2021-22
4,682,558,944
67,535,008,138
97,282,221,465
2020-21
4,308,417,196
61,824,712,434
90,007,317,461
Source: Piper Sandler Companies as compiled from State and County Abstract of the Assessment Roll (Arizona
Department of Revenue) and Arizona Tax Research Association.
177
CITY OF CHANDLER, ARIZONA
DIRECT AND OVERLAPPING GENERAL OBLIGATION BONDED DEBT RATIOS
JUNE 30, 2025
Schedule 20
Per Capital
As % of City's
As % of City's
Bonded Debt
2024-25
2024-25
Population
Net Full Cash
Estimated Net
Estimates
Assessed
Full Cash
291,442 (1)
Value
Value
Direct General Obligation Bond Debt
$ 255,845,000 $
877.86
3.31
0.38
Direct Overlapping General Obligation
Bond Debt
$ 590,256,697 $
2,025.30
7.63
0.87
Source:
(1) City of Chandler, Development Services Department
178
CITY OF CHANDLER, ARIZONA
POPULATION STATISTICS
Schedule 21
Year
City of Chandler
Maricopa County
State of Arizona
2025 estimate
291,442 (1)
4,726,247 (2)
7,621,703 (2)
2024 estimate
288,088 (1)
4,757,600 (2)
7,658,600 (2)
2023 estimate
282,891 (1)
4,672,900 (2)
7,534,922 (2)
2022 estimate
282,873 (1)
4,575,603 (2)
7,489,121 (2)
2021 estimate
280,178 (3)
4,506,505 (3)
7,387,800 (3)
2020 Census
275,987 (1)
4,420,568 (2)
7,151,502 (2)
2019 estimate
261,173 (1)
4,367,835 (2)
7,187,990 (2)
2018 estimate
257,853 (1)
4,294,460 (2)
7,076,199 (2)
2017 estimate
254,239 (1)
4,221,684 (2)
6,965,897 (2)
2016 estimate
248,332 (3)
4,155,302 (3)
6,866,195 (3)
2015 mid-decade
243,679 (1)
4,175,049 (2)
6,833,596 (2)
2014 estimate
241,264 (1)
4,008,651 (2)
6,662,486 (2)
2010 Census
236,479 (3)
3,825,191 (3)
6,407,774 (3)
2005 Special Census
230,845 (3)
3,700,516 (3)
5,924,476 (2)
2000 Census
174,061 (3)
2,930,153 (3)
4,882,966 (3)
1990 Census
91,149 (3)
2,132,249 (3)
3,679,118 (3)
1980 Census
29,673 (1)
1,521,597 (3)
2,735,840 (3)
Sources:
(1) City of Chandler, Development Services Department
(2) Arizona Office of Economic Opportunity and Arizona Commerce Authority
(3) U.S. Census Bureau
179
CITY OF CHANDLER, ARIZONA
EXCISE TAX COLLECTIONS
Schedule 22
2020-21 (1)
2021-22 (1)
2022-23 (1)
2023-24 (1)
2024-25 (1)
Adopted
2025-26
Transaction Privilege Tax
$
155,638,444
$ 178,567,736
$ 205,020,881
$ 210,737,044
$ 204,965,247
$ 203,860,400
State Shared Sales Tax
30,982,818
38,801,443
41,309,738
42,363,408
42,987,267
43,186,000
State Shared Income Tax
37,324,127
36,011,056
53,013,618
74,386,039
59,599,347
55,747,000
Franchise Fees
3,615,294
3,652,812
3,630,508
3,383,051
2,807,599
3,190,000
Licenses and Permits
6,835,817
7,086,928
8,742,071
5,095,759
13,818,609
10,900,300
Fines and Forfeitures
2,316,000
2,791,624
4,127,033
4,296,570
4,180,605
5,351,400
Totals
$
236,712,500
$ 266,911,599
$ 315,843,849
$ 340,261,871
$ 328,358,674
$ 322,235,100
Note: Includes city transaction privilege sales tax, privilege audit assessments, privilege license fees and
privilege tax interest. Excludes excise tax refunds from GPLET program.
(1) Amounts are actual collections provided by the City of Chandler, Management Services Department (cash
basis).
180
CITY OF CHANDLER, ARIZONA
TRANSACTION PRIVILEGE (SALES) TAX RATES BY CATEGORY
JUNE 30, 2025
Schedule 23
Taxable Activities
Chandler Tax Rate
Advertising
1.50 %
Amusements
1.50 %
Contracting
1.50 %
Construction Contracting (non MRRA) (1)
1.50% of 65% of gross
Jet Fuel Sales (and Use)
$0.02300/gallon
Job Printing
1.50 %
Manufactured Housing
1.50 %
Timber & Extraction
1.50 %
Mining
0.10 %
Publishing
1.50 %
Hotel/Motel (≤ 30 Days)
4.40% (1.50% + 2.90%)
Hotel/Motel (> 30 Days)
1.50 %
Rentals - Real Property
Residential
1.50 %
Commercial
1.50 %
Tangible Personal Property Rentals
1.50 %
Restaurants/Bars
1.80 %
Retail Sales
1.50 %
Telecommunications
2.75 %
Transportation for Hire
1.50 %
Utilities
2.75 %
Use Tax
1.50 %
Source: City of Chandler, Management Services Department
(1) MMRA - maintenance, repair, replacement and alteration
181
CITY OF CHANDLER, ARIZONA
STATE SALES TAX TAXABLE ACTIVITIES, TAX RATES AND DISTRIBUTION SHARE
JUNE 30, 2025
Schedule 24
State Transaction
Privilege (Sales) Tax Rates
Taxable Activities
State Tax Rate
Education Tax Rate
(1)
Distribution Share
Transporting
6.300 %
0.600 %
20.000 %
Utilities
6.300
0.600
20.000
Telecommunications
6.300
0.600
20.000
Pipeline
6.300
0.600
20.000
Private Car Line
6.300
0.600
20.000
Publication
6.300
0.600
20.000
Job Printing
6.300
0.600
20.000
Prime Contracting
6.300
0.600
20.000
Owner Builder Sales
5.600
0.600
20.000
Amusement
6.300
0.600
40.000
Restaurant
6.300
0.600
40.000
Personal Property Rental
6.300
0.600
40.000
Retail (excluding food sales)
6.300
0.600
40.000
Transient Lodging
7.270
N/A
50.000
Mining - non-metal, oil/gas
3.562
N/A
32.000
Commercial Lease
—
N/A
53.330
Severance - Metalliferous Mining
2.500
N/A
80.000
Use Tax Utilities
5.600
0.600
20.000
Jet Fuel Use Tax
(2)
N/A
40.000
Source: Arizona Department of Revenue
(1) Represents that state transaction privilege (sales) tax rate approved by voters of the state in November
2000 (the "Education Tax") on certain of the categories of business activity at six-tenths of one percent
(0.6%). The Education Tax collections are dedicated exclusively to education and are not distribued to the
city or pledged to the payment of debt service. The effective dates for the Education Tax are June 1, 2001
through June 30, 2041.
(2) Does not include the $0.0305 per gallon state tax on the retail sale of jet fuel, which tax is only levied on the
first ten million gallons sold to each purchaser in each calendar year.
182
CITY OF CHANDLER, ARIZONA
COMBINED SCHEDULE OF WATER AND SEWER SYSTEM REVENUES, EXPENSES, NET
REVENUES AND DEBT SERVICE COVERAGE
LAST FIVE FISCAL YEARS
Schedule 25
2020-21
2021-22
2022-23
2023-24
2024-25
System Revenues:
Service Fees
$ 120,727,939 $ 116,020,531 $ 114,299,984 $ 120,915,803 $ 121,565,521
Miscellaneous
35,573
568,571 12,832,795
21,558
4,953,691
Interest Income
264,558
(6,810,687)
3,442,281
9,367,520 10,436,953
Total System Revenues
$ 121,028,070 $ 109,778,415 $ 130,575,060 $ 130,304,881 $ 136,956,165
System Expenditures:
General and Administration
$ 6,510,382 $ 6,533,212 $ 6,872,315 $ 6,987,459 $ 7,362,882
Personnel Services
17,923,155 17,632,637 19,509,838 21,831,616 23,924,599
Contractual Services
14,338,257 16,597,926 18,544,747 20,137,906 20,833,392
Commodities
21,857,415 22,851,386 35,663,988 31,875,211 29,620,086
Total System Expenditures
$ 60,629,209 $ 63,615,161 $ 80,590,888 $ 80,832,192 $ 81,740,959
Net Income Available for Debt
Service
$ 60,398,861 $ 46,163,254 $ 49,984,172 $ 49,472,689 $ 55,215,206
183
CITY OF CHANDLER, ARIZONA
UTILITY RATE INCREASE HISTORY
Schedule 26
Water (10,000 gal)
Wastewater
Effective Date
(Single Family)
(Single Family)
09/01/80
8.40 %
16.67 %
04/25/83
33.80 %
— %
11/30/83
— %
41.43 %
07/01/84
— %
41.47 %
11/01/80
10.53 %
13.70 %
08/01/85
— %
7.57 %
01/01/89
8.33 %
3.95 %
01/01/90
7.69 %
5.04 %
01/01/91
4.28 %
3.96 %
04/01/92
8.05 %
3.97 %
02/15/93
7.75 %
3.97 %
10/01/94
11.55 %
6.98 %
10/01/07
(9.00) % (1)
23.90 %
10/01/09
23.64 % (2)
13.02 %
10/01/13
— %
9.00 % (3)
10/01/15
— % (4)
9.00 % (3)
10/01/17
0.70 % (5)
3.70 % (5)
07/01/22
2.00 % (6)
9.20 % (6)
01/01/24
7.00 % (7)
8.00 % (7)
Source: City of Chandler, Management Services Department
(1) The water rate structure was changed in the October 1, 2007 rate increase to separate each customer class
and move a higher portion of costs from the base charge to the volume charge in a tiered structure.
(2) The water rate structure was changed in the October 1, 2009 rate increase to move 20,000 gallons of
consumption from tier 4 to tier 3, as well as move a portion of costs back to the base charge from the
volume charge.
(3) The wastewater rates were increased October 1, 2013 and October 1, 2015 to cover additional debt service
costs tied to new construction and expansion of facilities.
(4) Effective October 1, 2015 the water seasonal rates (winter/summer) were eliminated and replaced with a
year-round rate, but the annual cost to rate payers remained unchanged.
(5) In 2016, a Cost of Service Study was completed water consumption rates were not changed, however,
effective October 1, 2017 the water base rate increased 0.70% and the wastewater rates were increased by
3.70% to cover debt service costs tied to new construction and expansion of facilities.
(6) In January 2022, a Cost of Service Study was completed and base water rates increased 2.0%. Additionally,
base wastewater rates were increased by 9.2% cover debt service costs along with rising costs for
infrastructure and expansion of facilities. Rate increases were effective July 1, 2022.
(7) Water rates increased by 7.0% and wastewater rates were increased by 8% to cover debt service costs along
with rising costs for infrastructure and expansion of facilities. Rate increases were effective January 1, 2024.
184
CITY OF CHANDLER, ARIZONA
TOP 10 WATER AND WASTEWATER CUSTOMERS
JUNE 30, 2025
Schedule 27
Water
Customer name
Amount
Intel Corporation
$ 6,424,743
NXP Semiconductors
1,281,484
Chandler Unified School District
738,721
Air Products & Chemicals
531,560
Digital 2121 South Price, LLC
250,688
Gleiberman Property, Inc.
169,243
TWC-Chandler, LLC
152,326
Townsquare Apartments
135,403
Chandler Regional Medical Center/Dignity Health
122,146
MG Country Brook Apartments, LLC
113,106
Wastewater
Customer name
Amount
Intel Corporation
$ 9,411,926
NXP Semiconductors
2,014,022
Chandler Unified School District
346,000
Gila River Indian Community (Lone Butte)
309,431
Chandler Regional Medical Center/Dignity Health
182,272
Digital 2121 South Price, LLC
166,594
Gleiberman Property, Inc.
124,187
Microchip Technology, Inc.
119,729
BMF IV AZ Laguna Village, LLC
118,606
Gila River Casino-Lone Butte-3
117,467
Source: City of Chandler, Management Services Department
185
CITY OF CHANDLER, ARIZONA
NUMBER OF WATER AND WASTEWATER CUSTOMERS
LAST TEN FISCAL YEARS
2016
2017
2018
2019
WATER
Residential
75,883
77,062
77,674
78,244
Commercial
4,309
4,535
4,550
4,927
Multi-Unit
1,087
1,107
1,128
1,134
Industrial
61
63
66
67
Other
1,640
2,034
2,116
2,389
WASTEWATER
Residential
74,346
75,761
76,517
77,089
Commercial
2,201
2,138
2,329
2,371
Multi-Unit
920
915
952
956
Industrial
34
38
48
48
Other
475
590
592
598
Source: City of Chandler, Management Services Department
186
Schedule 28
2020
2021
2022
2023
2024
2025
78,928
79,961
79,873
79,970
80,163
80,414
2,546
2,577
4,919
4,898
4,577
4,632
1,115
1,124
1,151
1,191
1,199
1,206
63
63
54
55
57
59
647
647
800
800
1,092
1,190
77,797
78,794
79,294
79,127
78,595
78,809
2,420
2,450
2,540
2,528
2,137
2,153
965
974
999
1,002
831
832
48
48
49
48
23
25
603
603
604
598
431
432
187
CITY OF CHANDLER, ARIZONA
DIRECT AND OVERLAPPING GENERAL OBLIGATION BONDED DEBT OUTSTANDING
JUNE 30, 2025
Schedule 29
2024-25
2024-25
Overlapping
Proportion Applicable
General
to City of Chandler
Obligation
Approximate
Net Debt
Overlapping Jurisdiction
Bonded Debt
Percent
Amount
State of Arizona
None
4.65 %
None
Maricopa County
None
7.04
None
Maricopa County Community College District
$
26,675,000
7.04
$
1,878,704
Maricopa County Special Health Care District
512,560,000
7.14
36,588,448
Kyrene Elementary School District No. 28
164,985,000
28.62
47,219,674
Mesa Unified School District No. 4
170,560,000
4.49
7,658,039
Gilbert Unified School District No. 41
86,970,000
16.91
14,706,914
Chandler Unified School District No. 80
344,810,000
75.20
259,312,619
Tempe Union High School District No. 213
9,154,500,000
16.39
15,002,300
East Valley Institute of Technology District No.
401
None
14.50
None
City of Chandler
255,845,000
100.00
255,845,000
Total Direct and Overlapping General Obligation Bonded Debt Outstanding
$
638,211,698
Direct and Overlapping Tax Rates Per $100 Assessed Valuation
Inside the City, East Valley Institute of Technology and
Inside Gilbert Unified School District No. 41
$
9.2344
Inside Mesa Unified School District No. 4
$
10.4810
Inside Tempe Union High School District No. 213 and
Kyrene Elementary School District No. 28
$
9.7003
Inside Chandler Unified School District No. 80
$
9.6113
Source: Piper Sandler Companies
Note: The applicable percentage of overlap for each type of debt was computed on the net limited property
assessed valuation as calculated for fiscal year 2024-25 for the overlapping jurisdiction to the amount of such
valuation which lies within the City of Chandler.
188
CITY OF CHANDLER, ARIZONA
DEMOGRAPHIC AND ECONOMIC STATISTICS
LAST TEN FISCAL YEARS
Schedule 30
Total
Per Capita
Fiscal
Personal
Median
Unemployment
Personal
Year
Population (1)
Income (2)
Age (2)
Rate (3)
Income (2)
2015-16
248,332
$8,324,088,640
34.9
4.5%
$33,520
2016-17
254,239
8,731,329,977
35.2
3.9
34,343
2017-18
257,853
9,360,321,753
35.3
3.6
36,301
2018-19
261,173
10,101,649,294
36.0
4.0
38,678
2019-20
275,987
11,088,605,686
36.0
8.7
40,178
2020-21
280,178
(4)
11,693,509,008
36.0
5.6
41,736
2021-22
282,873
13,284,564,699
36.0
3.0
46,963
2022-23
282,891
14,130,122,559
36.1
2.9
49,949
2023-24
288,088
15,232,941,088
37.4
3.0
52,876
2024-25
291,442
15,446,426,000
37.4
3.5
53,000
Sources:
(1) City of Chandler, Development Services Department
(2) City of Chandler, Economic Development Division
(3) Arizona Office of Employment and Population Statistics
(4) U.S. Census Bureau
Notes: Total personal income is composed of earned income, dividends, interest and rents and government
transfer payments.
Per capita personal income is calculated by dividing total personal income by population; amounts may not be
exact due to rounding.
189
190
CITY OF CHANDLER, ARIZONA
PRINCIPAL EMPLOYERS
CURRENT YEAR AND TEN YEARS AGO
Schedule 31
2025
Percentage
of Total City
Employer
Employees
Rank
Employment
Intel Corporation
12,000
1
7.27%
Wells Fargo
5,500
2
3.33%
Chandler Unified School District
4,900
3
2.97%
Bank of America
3,600
4
2.18%
Chandler Regional Medical Center/Dignity Health
3,000
5
1.82%
City of Chandler
2,300
6
1.39%
Northrop Grumman
1,700
7
1.03%
Microchip Technology
1,700
7
1.03%
NXP
1,700
7
1.03%
PayPal
1,500
8
0.91%
Insight Enterprises
1,400
9
0.85%
Bashas (HQ and Distribution Center)
1,100
10
0.67%
Total
40,400
24.48%
2016
Percentage
of Total City
Employer
Employees
Rank
Employment
Intel Corporation
11,000
1
7.91%
Chandler Unified School District
4,900
2
3.52%
Wells Fargo
4,500
3
3.24%
Bank of America
3,800
4
2.73%
Verizon Wireless
2,400
5
1.73%
Chandler Regional Hospital
2,100
6
1.51%
Paypal
1,750
7
1.26%
Orbital ATK
1,650
8
1.19%
Microchip Technology
1,625
9
1.17%
City of Chandler
1,590
10
1.14%
Total
35,315
25.40%
Source: City of Chandler, Economic Development Division, City of Chandler Human Resources Department and
Arizona Office of Employment and Population Statistics.
191
CITY OF CHANDLER, ARIZONA
EMPLOYEES BY FUNCTION
LAST TEN FISCAL YEARS
2015-16
2016-17
(1)
2017-18
2018-19
(2)
Full Time Equivalent Personnel
Mayor and council
4
11
4
5
City clerk
6
7
6
6
City manager
240
206
199
193
Communications/public affairs
15
15
15
14
City magistrate
39
38
40
37
Law
31
31
30
32
Management services
67
64
67
68
Total General Government
402
372
361
355
Total Transportation and Development
150
152
160
84
Total Community Services
156
199
202
195
Police
490
491
501
485
Fire
240
222
233
233
Total Public Safety
730
713
734
718
Municipal utilities administration
8
7
7
—
Water
87
89
90
—
Wastewater
65
69
74
—
Solid waste
21
20
18
—
Total Municipal Utilities
181
185
189
—
Municipal utilities administration
—
—
—
6
Water
—
—
—
90
Wastewater
—
—
—
66
Solid waste
—
—
—
19
Public works administration
—
—
—
1
Streets
—
—
—
70
Total Public Works and Utilities
—
—
—
252
Total Primary Government
1,619
1,621
(1)
1,646
1,604
(2)
Source: City of Chandler, Human Resources Department
(1) The significant changes between 2016 and 2017 are a result of Library, Museum and Center for the Arts
moving from City Manager Department to Community Services.
(2) The significant changes between 2018 and 2019 are a result of the Streets Division and Municipal Utilities
consolidating into the Public Works and Utilities Department.
(3) The significant changes between 2023 and 2024 are a result of the Cultural Development Department
consolidating into the City Manager Department.
Note: The calculation of full time equivalent personnel includes full time and part time regular employees as of
the last pay period of the fiscal year.
192
Schedule 32
2019-20
2020-21
2021-2022
2022-2023
2023-2024
2024-2025
5
5
6
5
6
13
6
6
4
5
6
7
194
198
196
191
255
(3)
264
15
14
12
14
14
14
40
33
35
38
36
37
32
31
32
33
31
33
67
66
59
66
68
73
359
353
344
352
416
441
77
76
77
82
78
82
199
194
194
219
186
(3)
190
488
477
476
497
520
515
229
228
235
244
260
254
717
705
711
741
780
769
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
6
7
5
8
8
9
90
89
28
91
97
96
68
71
47
74
73
77
21
21
21
21
21
22
2
2
2
2
2
2
78
79
58
82
81
78
265
269
161
278
282
284
1,617
1,597
1,487
1,672
1,742
(3)
1,766
193
CITY OF CHANDLER, ARIZONA
OPERATING INDICATORS BY FUNCTION/PROGRAM
LAST TEN FISCAL YEARS
Function/Program
2015-16
2016-17
2017-18
2018-19
General Government
Meeting notices posted
565
535
681
666
City council actions and agenda items
prepared
844
860
838
789
Grant awards received
46
43
27
24
Inventory turnover ratio
1.74
1.81
1.79
2.04
Transportation & Development
Building permits issued
5,142
4,635
3,944
4,011
Community Services
Library circulation
2,101,421
2,059,429
2,041,574
1,801,237
Center for the Arts events & exhibits
985
1,048
1,177
825
Public Safety
Crime rate (per 1,000 population)
26
26
25
22
Total calls for police services (estimated)
145,466
156,186
159,301
154,736
Total calls for fire services
23,966
25,072
25,185
26,818
Fire inspections
5,814
4,635
5,135
6,698
Fire investigations
30
27
41
18
Municipal Utilities
Water connections
83,089
84,670
84,338
85,416
Operating wells
28
31
32
31
Daily pumping capacity - wells (gallons)
66,300,000
74,400,000
74,100,000
71,300,000
Daily pumping capacity - plants (gallons)
72,000,000
72,000,000
84,000,000
84,000,000
Sewer connections
78,144
78,972
79,841
81,033
Sanitary sewer (miles)
917
928
933
935
Solid waste customers served
73,162
73,288
75,018
75,675
Solid waste refuse collected (tons)
81,653
80,069
83,004
84,500
Solid waste refuse recycled (tons)
22,102
22,305
22,101
22,887
Source: City of Chandler Departments
194
Schedule 33
2019-20
2020-21
2021-22
2022-23
2023-24
2024-25
542
395
377
210
387
419
739
460
1,299
409
597
509
33
40
39
39
43
61
2.40
1.73
2.00
2.13
2.10
2.32
4,091
4,601
4,615
3,188
3,339
3,374
1,415,291
1,356,695
1,308,861
1,581,822
1,659,547
1,565,471
537
389
690
790
799
813
23
19
20
17
16
15
146,859
139,236
146,008
154,890
148,327
154,491
26,371
26,676
28,582
28,654
28,882
29,415
6,641
3,257
3,389
3,955
6,362
2,098
23
17
14
16
41
19
86,098
87,251
83,237
86,940
87,207
87,568
31
30
30
31
32
31
71,800,000
71,800,000
69,000,000
73,000,000
76,000,000
63,000,000
84,000,000
84,000,000
84,000,000
135,000,000
135,000,000
135,000,000
81,796
82,895
81,419
81,899
83,620
83,913
941
945
947
958
1,039
1,043
76,773
77,297
76,249
78,878
79,116
79,324
86,950
94,218
93,487
86,901
79,563
79,000
21,800
22,775
20,876
18,359
18,438
17,500
195
CITY OF CHANDLER, ARIZONA
CAPITAL ASSET STATISTICS BY FUNCTION/PROGRAM
LAST TEN FISCAL YEARS
Function/Program
2015-16
2016-17
2017-18
2018-19
Community Services
Developed parks
65
65
65
67
Developed acres
1,236
1,244
1,244
1,281
Undeveloped acres
302
299
299
231
Swimming pools
6
6
6
6
Lighted fields
41
43
43
41
Library bookstock
341,073
360,618
359,445
310,888
Transportation and Development
Total miles streets (center line)
855
855
857
857
Street lights
27,700
27,800
27,199
29,500
Signalized intersections
218
218
220
225
Public Safety
Police stations
3
3
3
3
Fire stations
10
10
11
11
General Government
Based aircraft
427
455
457
523
Municipal Utilities
Water mains (miles)
1,196
1,283
1,212
1,218
Fire hydrants
13,207
15,708
15,970
16,159
Average daily treatment (mgd)
29
29
28
54
Source: City of Chandler Departments
196
Schedule 34
2019-20
2020-21
2021-22
2022-23
2023-24
2024-25
67
67
68
69
69
70
1,281
1,301
1,309
1,317
1,317
1,354
231
219
209
201
201
167
6
6
6
6
6
6
43
50
51
60
64
64
310,812
294,276
295,573
302,599
307,862
305,330
858
858
858
1,020
2,090
2,090
29,500
29,731
28,515
28,462
28,538
28,610
226
232
234
238
238
238
3
3
3
3
3
3
11
11
11
11
11
11
440
448
441
449
452
451
1,228
1,232
1,237
1,250
1,242
1,242
16,296
16,492
13,780
13,371
13,930
13,918
31
31
28
84
84
84
197
198
Phone (480) 782-2333
www.chandleraz.gov/Accounting
Mailing Address
Mail Stop 702
P.O. Box 4008
Chandler, Arizona 85244-4008
Accounting Division
175 S. Arizona Avenue
Chandler, Arizona 85225