Report on Internal Control Over Compliance
Management of the City is responsible for establishing and maintaining effective internal control over compliance with the types of compliance requirements referred to above. In planning and performing our audit of compliance, we considered City's internal control over compliance with the types ofrequirements that could have a direct and material effect on each major federal program to determine the auditing procedures that are appropriate in the circumstances for the purpose of expressing an opinion on compliance for each major federal program and to test and repmt on internal control over compliance in accordance with the Uniform Guidance, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of City's internal control over compliance.
A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet impotiant enough to merit attention by those charged with governance.
Our consideration of internal control over compliance was for the limited purpose described in the first paragraph ofthis section and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified.
The purpose of this repmt on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of the Uniform Guidance. Accordingly, this repmt is not suitable for any other purpose.
Report on Schedule of Expenditures of Federal Awards
We have audited the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City as of and for the year ended June 30, 2021, and have issued our report thereon dated April 22, 2022 which contained unmodified opinions on those financial statements. Our audit was conducted for the purpose of forming our opinions on the City's Basic Financial Statements. The accompanying Schedule of Expenditures ofFederal Awards, as required by Title 2 U.S. Code of Federal Regulations Patt 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal A·wards, is presented for purposes of additional analysis as required by the Uniform Guidance and is not a required part of the 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 financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and ce1tain other procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the Schedule of Expenditures of Federal Awards is fairly stated in all material respects in relation to the basic financial statements as a whole.
San Diego, California
April 22, 2022
4 City of Calexico
Schedule of Expenditures of Federal Awards
For the Year Ended June 30, 2021
Federal GrantorlPassed through Grantor
Program Title
U.S. Department of Housing and Urban Development:
CDBG- Entitlement Grants Cluster:
CFDA Grant Award
Number Number
Passed through the State o/Califomia Department of Housing and Community Development:
Home and Ownership Section 14.218 Program Income
Total CDBG- Entitlement Grants Cius ter
Passed through the State o/Califomia Department of Housing and Community Development:
HOME Investment Partnerships Program 14.239 Program Income Total U.S . Department of Housing and Urban Development U.S. Department of Justice:
Direct Program:
Bulletproof Vest Partnership Program
U.S. Department of Transportation:
Highway Planning and Cons !ruction Cius ter:
Passed Through State a/California Department o/Transportatio11:
New River Bike Path
Cesar Chavez Blvd- West Port of Entry
Weakley Road Improvements
16.607 NIA
Total U.S. Department of Justice
20.205
20.205
20.205
HPUL-5168(015)
HPUL-5168(017)
CML-5168(032)
Total Highm1y Planning and Construction Cluster
Airport Improvement Program:
Direct Program:
Airport Improvement Program
COVID-19- CARES Act
COVID-19- CRRSA - Airport Coronavirus Response Grant Program U.S. Department of Treasury:
Coronavirus Relief Fund:
20.106
20.106
20.106
3-06-0034-017-2018
3-06-0034-019-2020
3-06-0034-020-2021
Total Airport Improvement Program
Total U.S. Department of Transportation
Passed through State a/California Department o/Housi11g and Community Development:
Coronavirus ReliefFund ,. 21.019 20-HK-00113
Passed through the State a/California:
Coronavirns Relief Fund ,. 21.019 NIA
Passed through the County a/Imperial:
Coronavirus ReliefFund ,. 21.019 NIA
Total Coronavirus Relief Fund
Total U.S. Department of Treasury
E.xecutive Office of the President:
Passed through the County a/San Diego:
High Intensity Drng Trafficking Areas (HIDTA) 95.001 NIA Total E.xecutive Office of the President
U.S. Department of Homeland Security:
Direct Program:
Public Assistance - Disaster Grants 97.036 FEMA-4482-DR-CA Passed through the Co u11ty a/Imperial:
Operation Stonegarden 97.067 I 5-ELCELC-05-001
$
Federal
E.xpencli tu res
5,349
5,349
4,701
10,050
8,476
8,476
2,318
114,260
1,771
118,349
13,135
30,000
9,000
52,135
170,484
5,300,000
504,948
35,285
5,840,233
5,840,233
3,852
3,852
341 ,312
9,744
Total U.S. Department of Homeland Security 351 ,056
Total E.xpenditures of Federal Amll"ds =$==6='=384==,1=5=1= See Accompanying Notes to the Schedule of Expenditures of Federal Awards. 5 City of Calexico
Notes to the Schedule of Expenditures of Federal Awards For the Year Ended June 30, 2021
Note 1- Reporting Entity
The financial reporting entity consists of the primary government, City of Calexico (the "City"), organizations for which the primary government is financially accountable, and other organizations for which the nature and significance of their relationship with the primary government are such that exclusion would cause the rep01ting entity's financial statements to be misleading or incomplete.
Note 2 - Basis of Accounting
The various grant programs have been recorded within the general fund and special revenue funds of the City. The City utilizes the modified accrual method of accounting for the general fund and special revenue funds. The accompanying Schedule of Expenditures of Federal Awards ("Schedule") is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Therefore, some amounts presented in the schedule may differ from amounts presented in, or used in, the preparation of the City's basic financial statements.
Note 3 - Schedule of Expenditures of Federal Awards
The accompanying Schedule presents the activity of all federal financial assistance programs of the City. Federal financial assistance received directly from federal agencies as well as federal financial assistance passed through the State of California, County oflmperial, and County of San Diego is included in the Schedule. The Schedule was prepared from only the accounts of various grant programs and, therefore, does not present the financial position, change in fund balance, or results of operations of the City.
Note 4 - Subrecipients
During the fiscal year ended June 30, 2021, there were no amounts provided to subrecipients.
Note 5 - Indirect Cost Rate
The City has not elected to use the IO-percent de minimis indirect rate as allowed under the Uniform Guidance. 6 City of Calexico
Schedule of Findings and Questioned Costs
For the Year Ended June 30, 2021
Section I - Summary of Auditor's Results
Financial Statements
Type of report the auditors issued on whether the financial statements audited were prepared in accordance with GAAP:
Internal control over financial reporting:
• Material weakness( es) identified?
• Significant deficiency(ies) identified?
Noncompliance material to financial statements noted?
Federal Awards
Internal control over major programs:
• Material weakness(es) identified?
• Significant deficiency(ies) identified?
Type of auditor's rep01t issued on compliance for major programs Any audit findings disclosed that are required to be repmted in accordance with 2 CFR 200.516(a)?
Identification of major programs:
Major Program
Coronavirus Relief Fund
Total major program expenditures
Total expenditures of federal awards
Percent of total federal award expenditures
Federal
CFDA#
21.019
Dollar threshold used to distinguish between type A and type B programs Auditee qualified as low-risk auditee in accordance with 2 CFR 200.520? 7 $
$
$
Unmodified
No
None Reported
No
No
None Rep01ted
Unmodified
No
Federal
Expenditures
5,840,233
5,840,233
6,384,151
91.48%
$750,000
No
City of Calexico
Summary of Prior Audit Findings Status
For the Year Ended June 30, 2021
Section II - Financial Statement Findings
A. Current Year Findings - Financial Statement Audit
No findings were noted on the City's financial statement audit for the year ended June 30, 2021 .
B. Prior Year Findings - Financial Statement Audit
No findings were noted on the City's financial statement audit for the year ended June 30, 2020.
Section III - Federal Award Findings
A. Current Year Findings and Questioned Costs - Major Federal Award Program Audit No findings or questioned costs were noted on the City's major federal programs for the year ended June 30, 2021.
B. Prior Year Findings and Questioned Costs - Major Federal Award Program Audit No findings or questioned costs were noted on the City's major federal programs for the year ended June 30, 2020.
8 ATTACHMENT NO. 4
Report to Those Charged with Governance, April 22, 2022 812 11.00100\34500529. 1
Till II
PUN GROUP
ACCOUNTANTS & ADVISOR.S
April 22, 2022
To the Honorable Mayor and Members
ofthe City Council ofthe City of Calexico
Calexico, California
We have audited the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information, which collectively comprise the City's basic financial statements ("financial statements") of the City of Calexico ("City") as of and for the year ended June 30, 2021, and have issued our repo1t thereon dated April 22, 2022. In accordance with Government Auditing Standards, we have also issued our repmt dated April 22, 2022, on our consideration of the City's internal control over financial repmting 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 to describe the scope of our testing of internal control over financial repo1ting and compliance and the results of that testing, and not to provide an opinion on the internal control over financial repmting or on compliance. Professional standards require that we provide you with the following information related to our audit and information about our responsibilities under generally accepted auditing standards, Government Auditing Standards, and the Uniform Guidance, as well as ce1tain information related to the planned scope and timing of our audit. We have communicated such information in our engagement letter with the City dated February 7, 2022. Professional standards also require that we communicate to you the following information related to our audit:
Qualitative Aspects of Accounting Practices
Accounting Policies
Management is responsible for the selection and use of appropriate accounting policies. The significant accounting policies used by the City are described in Note 1 to the basic financial statements. Other than those standards described below that were implement in the fiscal year ended June 30, 2021 , no new accounting policies were adopted nor was the application of existing policies changed:
GASE Statement No. 84
In January 2017, GASB issued Statement No. 84, Fiducimy Activities. This Statement establishes criteria for identifying fiduciary activities of all state and local governments. The focus of the criteria generally is on (1) whether a government is controlling the assets of the fiduciary activity and (2) the beneficiaries with whom a fiduciary relationship exists. Separate criteria are included to identify fiduciary component units and postemployment benefit arrangements that are fiduciary activities. Application of this statement is effective for the City's fiscal year ending June 30, 2021. As a result of the implementation, the City converted the former agency funds, which previously reported assets and liabilities only, to custodial funds and repmted a restatement of its net position in the amount of$1,566,597. See note 17.
4660 La Jolla Village Drive, Suite 100, San Diego, California 92122 "'\-vww.pungroup.cpa
To the Honorable Mayor and Members
of the City Counci 1 of the City of Calexico
Calexico, California
2021GASE Statement No. 89
In June 2018, GASB issued Statement No. 89, Accounting for Interest Cost Incurred before the End of a Construction Period. This Statement establishes accounting requirements for interest cost incurred before the end of a construction period. Such interest cost includes all interest that previously was accounted for in accordance with the requirements of paragraphs 5-22 of Statement No. 62, Codification of Accounting and Financial Reporting Guidance Contained in Pre-November 30, 1989 FASE and AICPA Pronouncements, which are superseded by this Statement. This Statement requires that interest cost incurred before the end of a construction period be recognized as an expense in the period in which the cost is incurred for financial statements prepared using the economic resources measurement focus. As a result, interest cost incurred before the end of a construction period will not be included in the historical cost of a capital asset reported in a business-type activity or enterprise fund. Application of this statement did not have a material effect on the City's financial statements for the fiscal year ending June 30, 2021.
GASE Statement No. 90
In August 2018, GASB issued Statement No. 90, Majority Equity Interests- An Amendment of GASE Statements No. 14 and No. 61. This Statement improves the consistency and comparability of reporting a government's majority equity interest in a legally separate organization and to improve the relevance of financial statement information for certain component units. It defines a majority equity interest and specifies that a majority equity interest in a legally separate organization should be reported as an investment if a government's holding of the equity interest meets the definition of an investment. A majority equity interest that meets the definition of an investment should be measured using the equity method, unless it is held by a special-purpose government engaged only in fiduciary activities, a fiduciary fund, or an endowment (including permanent and term endowments) or pe1manent fund. Those governments and funds should measure the majority equity interest at fair value.
Application of this statement did not have a material effect on the City's financial statements for the fiscal year ending June 30, 2021.
GASE Statement No. 98
In October 2021, GASB issued Statement No. 98, The Annual Comprehensive Financial Report, to establish the term annual comprehensive financial report and its acronym ACFR. That new term and acronym replace instances of comprehensive annual financial report and its acronym in generally accepted accounting principles for state and local governments. Application of this statement did not have a material financial effect on the City's financial statements for the fiscal year ending June 30, 2021.
We noted no transactions entered into by the City during the year for which there is a lack of authoritative guidance or consensus. All significant transactions have been recognized in the financial statements in the proper period.
Accounting Estimates
Accounting estimates are an integral pmi of the financial statements prepared by management and are based on management's knowledge and experience about past and current events and assumptions about future events. Ce1iain accounting estimates are pmiicularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ significantly from those expected. As pmi of our audit, we evaluated the key factors and assumptions used to develop the accounting estimates described above and in determining that it is reasonable in relation to the financial statements taken as a whole.
To the Honorable Mayor and Members
of the City Council of the City of Calexico
Calexico, California
The most sensitive estimates affecting the City's financial statements were:
• Investments are reported using GASB Statement No. 72, Fair Value Measurement and Application, this statement defines fair value, establishes a framework for measuring fair value and establishes disclosures about fair value measurement. Investments, unless otherwise specified, are recorded at fair value in the Statements of Net Position, and are categorized based upon the level of judgment associated with the inputs used to measure their fair value. Levels of inputs are as follows:
Level I - Inputs are unadjusted, quoted prices for identical assets and liabilities in active markets at the measurement date.
Level 2 - Inputs, other than quoted prices included in Level 1, that are observable for the assets or liabilities through corroboration with market data at the measurement date.
Level 3 - Unobservable inputs that reflect management's best estimate of what market pmticipants would use in pricing the assets or liabilities at the measurement date. • Management's estimate of the investment fair market value is based on information provided by the State of California for its investment in the Local Agency Investment Fund and based on market price provided by the trustee for investments in U.S. government sponsored enterprise securities and negotiable ce1tificates of deposit. We evaluated the key factors and assumptions used to develop the investment fair market value in determining that it is reasonable in relation to the financial statements taken as a whole.
• Management's estimate of the depreciation on capital assets is based on the industry standard and past experience on actual useful life of the asset groups. We evaluated the key factors and assumptions used to develop the depreciation on capital assets in determining that it is reasonable in relation to the financial statements taken as a whole.
• Management's estimate of the total OPEB liability is based on the actuarial valuation on total OPEB liability. We evaluated the key factors and assumptions used to develop the total OPEB liability in determining that it is reasonable in relation to the financial statements taken as a whole. • Management's estimate of the net pension liability is based on the actuarial valuation on total pension liability and based on audited financial statements on fiduciary net position for CalPERS plans. We evaluated the key factors and assumptions used to develop the net pension liability in determining that it is reasonable in relation to the financial statements taken as a whole.
As pmt of our audit, we evaluated the key factors and assumptions used to develop the accounting estimates described above and in determining that it is reasonable in relation to the financial statements taken as a whole.
Ce1tain financial statement disclosures are pmticularly sensitive because of their significance to financial statement users. The most sensitive disclosures affecting the financial statements were:
• Note 1 - Summary of Significant Accounting Policies
• Note 9 - Pension Plans
• Note 10 - Other Postemployment Benefits
• Note 12 - Commitments and Contingencies
• Note 17 - Prior Period Adjustments
• Note 18 - Subsequent Events - American Rescue Plan Act The financial statement disclosures are neutral, consistent, and clear.
To the Honorable Mayor and Members
ofthe City Council ofthe City of Calexico
Calexico, California
Difficulties Encountered in Pe1forming the Audit
We encountered no significant difficulties in dealing with management in performing and completing our audit.
Corrected and Uncorrected Misstatements
Professional standards require us to accumulate all known and likely misstatements identified during the audit, other than those that are clearly trivial, and communicate them to the appropriate level of management. There were no misstatements identified during our audit that management had to correct and none of the misstatements detected as a result of audit procedures were material, either individually or in the aggregate, to each opinion unit's financial statements taken as a whole.
Disagreements with Management
For purposes of this letter, a disagreement with management is a financial accounting, reporting, or auditing matter, whether or not resolved to our satisfaction, that could be significant to the financial statements or the auditor's repmt.
We are pleased to report that no such disagreements arose during the course of our audit.
Management Representations
We have requested certain representations from management that are communicated to us in the management representation letter dated April 22, 2022.
Management Consultations with Other Independent Accountants In some cases, management may decide to consult with other accountants about auditing and accounting matters, similar to obtaining a "second opinion" on ce1iain situations. If a consultation involves application of an accounting principle to the governmental unit's financial statements or a dete1mination of the type of auditor's opinion that may be expressed on those statements, our professional standards require the consulting accountant to check with us to determine that the consultant has all the relevant facts.
Other Audit Findings or Issues
We generally discuss a variety of matters, including the application of accounting principles and auditing standards, with management each year prior to retention as the governmental unit's auditors. However, these discussions occurred in the normal course of our professional relationship and our responses were not a condition to our retention.
Other Information in Documents Containing Audited Financial Statements Our responsibility for the supplementary infonnation accompanying the financial statements, as described by professional standards, is to evaluate the presentation of the supplementary information in relation to the financial statements as a whole and to repmi on whether the supplementary information is fairly stated, in all material respects, in relation to the financial statements as a whole. We applied ce1iain limited procedures to the Budgetary Comparison Schedules, Schedules of the Propmiionate Share of the Net Pension Liability and Related Ratios, Schedule of Changes in Net Pension Liability and Related Ratios, and the Schedules of Contributions for Pension, Schedule of Changes in Total OPEB Liability and Related Ratios, which are Required Supplementary Information ("RSI") that supplement the basic financial statements. Our procedures consisted of inquiries of management regarding 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 did not audit the RSI and do not express an opinion or provide any assurance on the RSI.
To the Honorable Mayor and Members
of the City Council of the City of Calexico
Calexico, California
We were engaged to rep01t on the Combining and Individual Non-major Fund Financial Statements, which accompany the financial statements but are not RSI. With respect to this supplementary information, we made ce1tain inquiries of management and evaluated the form, content, and methods of preparing the information to determine that the information complies with accounting principles generally accepted in the United States of America, the method of preparing it has not changed from the prior period, and the information is appropriate and complete in relation to our audit of the financial statements. We compared and reconciled the supplementary information to the underlying accounting records used to prepare the financial statements or to the financial statements themselves.
Restriction on Use
This information is intended solely for the use of the City Council and management of the City and is not intended to be, and should not be, used by anyone other than these specified parties.
Very truly yours,
San Diego, California
ATTACHMENT NO. 5
Appropriations Limit Schedule, June 2021
81211.00 100\34500529.1
City of Calexico
Calexico, Calif omia
Independent Accountants' Report on
Agreed-Upon Procedures Applied to
Appropriations Limit Schedule
For the Year Ending June 301 2022
THE II
PUNGR_OUP
t\CCO UNTt\NTS & t\D\l lSO llS
THE II
PUN GROUP
ACCOUNTANTS & ADVISORS
INDEPENDENT ACCOUNTANTS' REPORT ON
APPLYING AGREED-UPON PROCEDURES
To the Honorable Mayor and Members of City Council
of the City of Calexico
Calexico, California
We have performed the procedures enumerated below on the accompanying Appropriations Limit Schedule of the City of Calexico, California (the "City") for the year ending June 30, 2022. The City is responsible for the Appropriations Limit Schedule.
The City has agreed to and acknowledged that the procedures performed are appropriate to meet the intended purpose of meeting the requirements of Section 1.5 of A1ticle XIII-B of the California Constitution. The League of California Cities (as presented in the publication entitled Agreed-upon Procedures Applied to the Appropriations Limitation Prescribed by Article XIII-B of the California Constitution) has agreed to and acknowledged that the procedures performed are appropriate for its purposes. This repo1t may not be suitable for any other purpose. The procedures performed may not address all the items of interest to a user of this report and may not meet the needs of all users of this repmt and, as such, users are responsible for determining whether the procedures performed are appropriate for their purposes.
The procedures and the associated findings are as follows:
1. We obtained the completed worksheets used by the City to calculate its appropriations limit for the year ending June 30, 2022, and determined that the limit and annual calculation factors were adopted by resolution of City Council. We also determined that the population and inflation options were selected by a recorded vote of the City Council.
Finding: No exceptions were noted as a result of our procedures.
2. For the accompanying Appropriations Limit Schedule, we added the prior year's limit to the total adjustments, and agreed the resulting amount to the current year's limit.
Finding: No exceptions were noted as a result of our procedures.
3. We agreed the current year information presented in the accompanying Appropriations Limit Schedule to corresponding information in worksheets used by the City.
Finding: No exceptions were noted as a result of our procedures.
4. We agreed the appropriations limit presented in the accompanying Appropriations Limit Schedule to the appropriations limit adopted by the City Council.
Finding: No exceptions were noted as a result of our procedures. 4660 La Jolla Village Drive, Strite 100, San Diego, California 921 22 www.pungroup.cpa
To the Honorable Mayor and Members of City Council
of the City of Calexico
Calexico, California
We were engaged by the City to perform this agreed-upon procedures engagement and conducted our engagement in accordance with attestation standards established by the American Institute of Certified Public Accountants. We were not engaged to and did not conduct an examination or review engagement, the objective of which would be the expression of an opinion or conclusion, respective on the accompanying Appropriation Limit Schedule. Accordingly, we do not express such an opinion or conclusion. Had we performed additional procedures, other matters have come to our attention that would have been rep01ted to you.
We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements related to our agreed-upon procedures engagement.
This report is intended solely for the information and use of the City Council and management of the City and is not intended to be and should not be, used by anyone other than these specified parties.
San Diego, California
April 22, 2022
2 City of Calexico
Appropriations Limit Schedule
For the Year Ending June 30, 2022
Amount Source
A. Appropriations Limit FY 2020-2021 $ 33,613,489 Prior year B. Calculation Factors:
I) Population increase % 0.9919 State Department of Finance 2) Inflation increase % 1.0573 State Department of Finance 3) Total adjustment% 1.0487 (Bl *B2)
C. Annual Adjustment Increase 1,638,183 [A*(B3-l)]
D. Other Adjustments:
I) Loss responsibility(-) NIA
2) Transfer to private(-) NIA
3) Transfer to fees (-) NIA
4) Assumed responsibility(+) NIA
E. Total Adjustments 1,638,183 (C+D)
F. Appropriations Limit FY 2021-2022 $ 35,251,672 (A+E) See accompanying Notes to Appropriations Limit Schedule. 3 City of Calexico
Notes to Appropriations Limit Schedule
For the Year Ending June 30, 2022
Note 1 - Purpose of Limited Procedures Review
Under Article XIIIB of the California Constitution (the Gann Spending Limitation Initiative), California governmental agencies are restricted as to the amount of annual appropriations from proceeds of taxes. Effective for years beginning on or after July 1, 1990, under Section 1.5 of Article XIIIB, the annual calculation of the appropriations limit is subject to a limited procedures review in connection with the annual audit.
Note 2 - Method of Calculation
Under Section 10.5 of Article XIIIB, for fiscal years beginning on or after July 1, 1990, the appropriations limit is required to be calculated based on the limit for the fiscal year 1986-87, adjusted for the inflation and population factors discussed in Notes 3 and 4 below.
Note 3 - Population Factors
A California governmental agency may use as its population factor either the annual percentage change of the jurisdiction's own population or the annual percentage change in population of the county where the jurisdiction is located. The factor adopted by the City for the year 2021-2022 represents the annual percentage change in population for the City.
Note 4 - Inflation Factors
A California governmental agency may use as its inflation factor either the annual percentage change in the 4°1 quaiter per capita personal income (which percentage is supplied by the State Depattment of Finance) or the percentage change in the local assessment roll from the preceding year due to the change of local nonresidential construction. The factor adopted by the City for the year 2021-2022 represents the percentage change in California per capita personal income.
Note 5 - Other Adjustments
A California government agency may be required to adjust its appropriations limit when certain events occur, such as the transfer ofresponsibility for municipal services to, or from, another government agency or private entity. The City had no such adjustments for the year 2021-2022.
4