Chavan & Associates, LLP
Certified Public Accountants
16450 Monterey Rd, Suite 5
Morgan Hill, CA 95037
CITY OF COTATI, CALIFORNIA
APPROPRIATIONS LIMIT SCHEDULE AND
INDEPENDENT ACCOUNTANT’S REPORT
For the Year ended June 30, 2025
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CITY OF COTATI, CALIFORNIA
APPROPRIATIONS LIMIT SCHEDULE AND
INDEPENDENT ACCOUNTANT’S REPORT
FOR THE YEAR ENDED JUNE 30, 2025
TABLE OF CONTENTS
PAGE NO.
INDEPENDENT ACCOUNTANT’S REPORT ........................................................................... 1-2 APPROPRIATIONS LIMIT SCHEDULE.................................................................................. 3 NOTES TO THE APPROPRIATIONS LIMIT SCHEDULE .......................................................... 4 Page | 1 16450 Monterey Rd. Suite 5, Morgan Hill, CA 95037 Tel: 408-217-8749 • E-Fax: 408-872-4159
[email protected] • www.cnallp.com
INDEPENDENT ACCOUNTANTS’ REPORT ON AGREED-UPON
PROCEDURES APPLIED TO APPROPRIATIONS LIMIT UNDER
ARTICLE XIIIB OF THE CALIFORNIA CONSTITUTION
To the Honorable Mayor and Members of the
City Council of the City of Cotati
Cotati City, California
We have performed the procedures enumerated below to the accompanying Appropriations Limit Schedule of the City of Cotati, (City), for the year ended June 30, 2025. These procedures, which were agreed to by the City and 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) were performed solely to assist the City in meeting the requirements of Section 1.5 of Article XIII B of the California Constitution.
The City management is responsible for the Appropriations Limit Schedule. This agreed upon procedures engagement was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants. The sufficiency of the procedures is solely the responsibility of those parties specified in this report. Consequently, we make no representation regarding the sufficiency of the procedures described below either for the purpose for which this report has been requested or for any other purpose.
The procedures performed and our findings were as follows:
1. We obtained completed worksheets used by the City to calculate its appropriation limit for the fiscal year ended June 30, 2025 and determined that the limit and annual adjustment 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.
Findings: 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.
Findings: No exceptions were noted as a result of our procedures.
3. We agreed the current year information presented in the accompanying Appropriation Limit Schedule to corresponding information in worksheets used by the City.
Findings: No exceptions were noted as result of our procedures.
4. We agreed the prior year appropriations limit in the accompanying Appropriation Limit Schedule to the corresponding information in worksheets used by the City.
Findings: No exceptions were noted as a result of our procedures.
Page | 2 16450 Monterey Rd. Suite 5, Morgan Hill, CA 95037 Tel: 408-217-8749 • E-Fax: 408-872-4159
[email protected] • www.cnallp.com
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 AICPA.
We were not engaged to and did not conduct an examination or review, the objective of which would be the expression of an opinion or conclusion, respectively, on the accompanying Appropriation Limit Schedule. Accordingly, we do not express such an opinion or conclusion.
Had we performed additional procedures, other matters might have come to our attention that would have been reported 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 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.
However, this report is a matter of public record and its distribution is not limited.
October 15, 2025
Morgan Hill, California
CITY OF COTATI, CALIFORNIA
APPROPRIATIONS LIMIT SCHEDULE
FOR THE YEAR ENDED JUNE 30, 2025
3 Amount
A. Appropriations limit for the year ended June 30, 2024 $ 19,069,191 B. Calculation Factors:
1. Population increase % 0.9973 1)
2. Inflation increase % 1.0362
3. Total adjustment factor % 1.0334
C. Annual adjustment Increase 636,911
D. Other Adjustments:
Loss responsibility (-) -
Transfers to private (-) -
Transfers to fees (-) -
Assumed responsibility (+) -
Voter approved override (+) -
E. Total Adjustments 636,911
F. Appropriations limit for the year ending June 30, 2025 $ 19,706,102 1) Population increase % for:
City of Cotati 0.9894
Sonoma County 0.9973
CITY OF COTATI, CALIFORNIA
APPENDIX A
FOR THE YEAR ENDED JUNE 30, 2025
4 1. PURPOSE OF LIMITED PROCEDURES REVIEW
Under Article XIII B of the California Constitution (the Gann Spending Limitations 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 XIIB, the annual calculation of the appropriation limit is subject to a limited procedures review in connection with the annual audit.
2. METHOD OF CALCULATION
Under Section 10.5 of Article XIII B, 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.
3. INFLATION FACTORS
A California governmental agency may adjust its appropriations limit by either the annual percentage change in the 4th quarter per capita personal income (which percentage is supplied by the State Department 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 2024-25 represents the annual percentage change in the per capita personal income.
4. POPULATION FACTORS
A California governmental agency may adjust its appropriations limit by 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 2024-25 represents the annual percentage change in population for the County.
5. OTHER ADJUSTMENTS
A California government agency may be required to adjust its appropriations limit when certain events occur, such as the transfer of responsibility for municipal services to, or from, another government agency or private entity. The City had no such adjustments for the year ending June 30, 2025.