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STRATEGIC OUTCOMES |
ACTION |
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Department: |
☐ Safe & Prosperous |
☐ Motion |
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Finance |
☐ Active & Appealing |
☐ Resolution |
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☒ Respected & Responsible |
☐ Ordinance - Introduction |
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Division: |
☐ Connected & Engaged |
☐ Ordinance - Adoption |
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Administration |
☐ Unique & Creative |
☒ Public Hearing |
TITLE:
title
Public Hearing: Biennial Development Fee Audit FY 2024
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SUMMARY RECOMMENDATION:
Summary Recommendation
Conduct a public hearing on the Development Fee Biennial Certified Audit in accordance with Arizona Revised Statutes § 9-463.05 and Yuma City Code § 157.05. (Finance/Engineering) (Doug Allen/ David Wostenberg)
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STRATEGIC OUTCOME:
This statutory public hearing furthers the City Council’s strategic outcome of Respected and Responsible through transparency, allowing for public input through means of a public hearing, and demonstrating compliance with state law.
REPORT:
This Biennial Development Fee Audit for FY 2022-23 and FY 2023-24 was conducted and prepared by Wildan Financial Services for the Period July 1, 2022, through June 30, 2024. Pursuant to statute and Yuma City Code, the report is required and consists of a biennial certified audit of the City’s Land Use Assumptions, Infrastructure Improvements Plan and Development Fees.
The final report was posted on the City’s Engineering webpage on December 10, 2025. The action of a public hearing is required by the Arizona Revised Statues and must occur within 60 days of the release of the audit to the public. Dan Jackson, Vice President of Wildan Financial Services will present the report for the Public Hearing.
The Biennial Development Fee Audit for FY 2022-23 and FY 2023-24 report is attached.
This is not the first document and public hearing for a FY 2024 Biennial Development Fee Audit (BDF Audit). The original BDF Audit was presented at a Public Hearing on February 19, 2025, by Bakertilly, the City’s independent auditor. The format used for the original BDF is satisfactory in various Arizona Cities including Goodyear, Prescott and Marana. However, other Arizona municipal customers require a more robust and comprehensive document. Yuma’s customer base expressed desire for a more comprehensive format.
In an effort to better meet Yuma customer demands, the City engaged Wildan Financial Services to provide an enhanced BDF Audit for FY 2024 which covers July 1, 2022, to June 30, 2024. Wildan Financial Services is familiar with the City of Yuma as they complied and prepared the City’s “2023 Water and Wastewater Rate Study and Long-Term Financial Plan”.
Wildan Financial Services’ BDF audit provides a deeper dive into the City’s Land Use Assumptions, Infrastructure Improvements Plan and Development Fees. This format meets customer needs for cities including Phoenix, Gilbert, Scottsdale and others. The Wildan Financial Services DIF Audit does not replace but complements the DIF audit presented at the Public Hearing on February 19, 2025.
Audit Results:
1. Land Use Assumptions
• Actual development has been generally in line with forecast
2. Revenues and Expenditures
• DF-eligible CIP project expenditures have been significantly greater than the total DF revenues that have been collected
3. Level of Service Review
• No evidence that Level of Service has enhanced for new development in any of the DF categories reviewed
4. Permit Sampling
• Fees have been charged correctly and in accordance with ordinance
• No inequities in assessing fees across customers
Findings:
1. The City’s development fee program has been consistent with and in compliance with A.R.S. § 9-463.05
2. The City’s DFs are lower than the average of most other comparable municipalities in the State
3. Non-Utility DFs should be updated at minimum every five years and no later than every ten years
• Current DFs are based on cost data from 2018-2019
• Construction costs have increased significantly since 2019
• The City should consider updating the DFs, LUA and IIP, sooner than the maximum allowable interval
FISCAL REQUIREMENTS:
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CITY FUNDS: |
$ 0.00 |
BUDGETED: |
$ 0.00 |
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STATE FUNDS: |
$ 0.00 |
AVAILABLE TO TRANSFER: |
$ 0.00 |
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FEDERAL FUNDS: |
$ 0.00 |
IN CONTINGENCY: |
$ 0.00 |
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OTHER SOURCES: |
$ 0.00 |
FUNDING ACCOUNT/FUND #/CIP: |
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TOTAL |
$ 0.00 |
General Fund |
FISCAL IMPACT STATEMENT:
N/A
ADDITIONAL INFORMATION:
SUPPORTING DOCUMENTS NOT ATTACHED TO THE CITY COUNCIL ACTION FORM THAT ARE ON FILE IN THE OFFICE OF THE CITY CLERK:
NONE
IF CITY COUNCIL ACTION INCLUDES A CONTRACT, LEASE OR AGREEMENT, WHO WILL BE RESPONSIBLE FOR ROUTING THE DOCUMENT FOR SIGNATURE AFTER CITY COUNCIL APPROVAL?
☐ Department
☐ City Clerk’s Office
☐ Document to be recorded
☐ Document to be codified
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Acting City Administrator: |
Date: |
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John D. Simonton |
12/08/2025 |
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Reviewed by City Attorney: |
Date: |
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Richard W. Files |
12/04/2025 |