Chandler continues System Development Fee update process

Dec. 12, 2023
Building Inspection

CHANDLER, Ariz. – The Chandler City Council held a work session and public hearing last week to continue the process of updating the city’s Land Use Assumptions and Infrastructure Improvements Plan, as well related system development fees as required by state law.

System development fees are paid by developers during the building permit process and provide a one-time source of funding to pay for growth-related infrastructure and facilities. These fees have allowed Chandler to keep taxes low, using them in lieu of issuing bonds or raising utility rates paid by residents.

Chandler was one of the first cities in 1997 to implement the full range of system development fees or “impact fees” to ensure growth pays for growth. These fees have funded the construction of many of Chandler’s arterial street widenings, fire stations, police facilities, libraries, parks and water and wastewater infrastructure improvements.

Growth projects remaining to be paid by system development fees include widening sections of Alma School, Chandler Heights and Lindsey roads as well as construction of the Mesquite Groves and Lantana Ranch community parks. 

The process to update the city’s system development fees will continue into 2024.

On January 11, the city’s land use assumptions and infrastructure improvements plan will be considered for adoption, reflecting the planned building of residential and non-residential units, designated uses of remaining undeveloped land, and remaining infrastructure related to growth caused by these developments.

A public hearing on the proposed changes to system development fees paid by developers is scheduled for February 22. An ordinance reflecting the proposed fee changes is also scheduled for consideration at that meeting. Any changes to the existing fees would take effect in July 2024.