The City of Chandler worked with Government Consulting Partners (GCP) to review General Fund user fees citywide. The study estimated the staff time and other resources needed to provide services, then compared those costs with current fees to show how much users are paying compared to the cost of providing the service. The study also reviewed what other communities charge for comparable services.
In developing the recommendations, the city considered who benefits from each service. For example, keeping a recreation program which benefits the community affordable may justify covering part of its cost with general revenues, while a service that primarily benefits one applicant may warrant a fee that covers more of the cost. The recommendations give the Mayor and Council a basis for deciding how to share those costs between users and the community.
Recommended Fee Changes
Why is the city changing its fees?
Chandler charges user fees when someone asks for a service that mainly benefits them, such as a permit, plan review or inspection. Arizona law expects those fees to relate to the cost and level of the service. The city hired a consultant in 2026 to compare each fee with what the service now costs. Today fees cover about 62% of the annual cost of these services, and taxes and other City revenue cover the rest. The proposal raises fee coverage to about 76%, so applicants pay more of the cost of their own services, and the cost falls less on the general public.
When were the city's fees last reviewed or updated?
Fees have historically been adjusted on an as-needed basis depending on staff time to review and make recommended changes. The study found that many fees have not been adjusted in several years and recommended a more focused pattern of review.
Why are fees in the building area going up so much?
Building fees as a whole are moving from about 80% to 100% of cost, which means the city now covers about $3.2 million a year of building costs from other revenue. Three things drive the increases:
- Permit fees: the study found the current permit schedule under-recovers inspection costs for small and mid-sized projects, where fees cover only 53%–93% of cost. Increases are larger for small projects (47% for a $25,000 project) and smaller for big ones (7% at $500,000).
- Hourly rates: staff time is charged at an hourly rate for services like re-inspections and extra plan review. The study found the real cost is higher per hour than the current charge.
- Flat fees: several simple permits were set well below cost, such as electrical panel changes ($100 → $270) and residential solar ($150 → $335).
Plan review stays at 65% of the permit fee, which is about what it costs. A new single-family home would pay about 12% less than the peer average of nearby cities.