$70M Used To Cover Developer SDF's

Gilbert Town Staff admits money transfers to makeup for impact fee shortfalls

2/17/2026 - The Town of Gilbert votes to raise water rates an additional 25% to go into effect 4/1/2026.

The SHOCKING NEWS comes as town staff admit that taxpayer money was transferred from the General Fund to the Water SDF funds due to funding shortfalls. System Development Fees (SDFs), also referred to as “impact fees,” are collected from developers to help pay for Gilbert’s infrastructure.

The Town of Gilbert has stated countless times that “growth pays for growth” and “water pays for water.” Town officials have repeatedly said they cannot use other funds to supplement water costs. However, in a surprising admission, the Town has apparently been covering for shortfalls from developers and passing those costs on to residents.

Watch the videos below and you be the judge.

2/17/26 - GIlbert Town council meeting

THE LIE

Impact Fees/System Development Fees (SDF's) - Water Resource Director Rebecca Hamel speaks about how funds can be used and how they can't be used.

"Growth pays for Growth"

"Tax Dollars do NOT pay for water"

THE FACTS

Gilbert Resident Darrell Grossen calls out Town Council and presents the facts.

"This Council has quietly approved the transfer of $70 Million Dollars from the General Fund to subsidize Water System Development Fees."

THE ADMISSION

Budget Director Kelly Pfost admits to the $70 Million in funds beig transferred to account for the "leaks" in SDF funding shortfall. This is THE FIRST time that the town has ever acknowledged these transfers despite being repeatedly asked about SDF's

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