April 5, 2022
OFFICE OF THE CITY AUDITOR
Long Beach, California
HONORABLE MAYOR AND CITY COUNCIL
City of Long Beach
California
RECOMMENDATION:
LAURAL. DOUD, CPA
City Auditor
Receive and file the Independent Accountants' Report on Agreed.:Upon Procedures Applied to the Appropriations Limit Worksheet of the City of Long Beach, California for the year ended September 30, 2021.
DISCUSSION
In November 1979, California voters approved Proposition 4, commonly known as the (Paul) Gann Initiative. The Proposition placed limits on the amount of tax revenue that can be appropriated in any fiscal year by a government entity. The limit is increased each year by using population growth and inflation factors.
In order to increase the accountability of local governments in adopting their Gann Appropriations Limits, California voters approved Proposition 111 in June 1990. Among other things, the Proposition requires that the annual calculation of the Gann Limit be reviewed as part of an annual financial audit. The attached report has been prepared in compliance with that requirement.
TIMING CONSIDERATIONS:
Action by the City Council is not time sensitive.
FISCAL IMPACT:
Approving this action would have no fiscal impact
SUGGESTED ACTION:
Approve recommendation.
Respectfully submitted,
Laura L Doud, CPA
CITY AUDITOR
attachment
411 West Ocean Boulevard, 8th Floor, Long Beach, California 90802 (562) 570-6751 [email protected] CityAuditorlauraDoud.com
CITY OF LONG BEACH, CALIFORNIA
GANN LETTER
Fiscal Year Ended September 30, 2021
Fedak & Brown LLP
Certif~ed Pubfk Acc:01..mtanfa
Charles Z.. Fedak, CPA, MB.A
Christopher J. Bf'm\•n, CPA, CGM/!-,
Andy> Beck, CPA
Fedak & Brown LLP
Certified Pub!ic Accountants
Cypress Office:
6081 Orange Avenue
Cypress, Califomfa 90630
(657) 2'14-2307
FAX(714)527-9154
Riverside Office:
1945 Chicago Avenue, Suite C-·1
Riverside, California B2507
(951) 783--9149
Independent Accountant's Report on Agreed-Upon Procedures Applied to the Appropriations Limit Worksheet
The Honorable Mayor and City Council
City of Long Beach, California:
We have pe1formed the procedures enumerated below to the accompanying Appropriations Limit Worksheet of the City of Long Beach, California (the City) for the year ended September 30, 2021.
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 Prescribe by Article XIII B of the California Constitution), were performed solely to assist the City in evaluating whether it complied with the requirements of Section 1. 5 of Alticle XIII B of the California Constitution.
The City's management is responsible for the Appropriations Limit Worksheet. This agreed-upon procedures engagement was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants. The sufficiency of these 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 rep01t has been requested or for any other purpose.
1. We obtained the City's accompanying Appropriations Limit Worksheet for the year ended September 30, 2021 from the City of Long Beach and compared the limit and annual adjustment factors included in the worksheet to the limit and annual adjustment factors that were adopted by resolution of the City Council. We also compared the population and per capita income factor included in the aforementioned worksheet to those that were selected by a recorded vote by the City Council. No exceptions were noted as a result of these procedures.
2. For the accompanying Appropriations Limit Worksheet, we added the September 30, 2020 appropriations limit to (line A) to the annual permitted adjustment (line B) and compared the resulting amount to the September 30, 2021 appropriations limit (line C). No exceptions were noted as a result of these procedures.
3. We agreed the current year's information presented in the accompanying Appropriations Limit Worksheet to supporting worksheets above. No exceptions were noted as a result of this procedure.
4. We compared the September 30, 2021 appropriations limit presented in the accompanying Appropriations Limit Worksheet to the prior year appropriations limit adopted by the City Council for September 30, 2020. No exceptions were noted as a result of this procedure.
We were not engaged to, and did not perform an examination, the objective of which would be the expression of an opinion on compliance with Section 1.5 of Article XIIIB of the California Constitution and the accompanying Appropriations Limit Worksheet. Accordingly, we do not express such an opinion. Had we performed additional procedures, other matters might have come to our attention that would have been reported to you. No procedures have been performed with respect to the determination of the Appropriation limit for the base year, as defined by Alticle XIIIB of the California Constitutions.
This report is intended solely for the use of the City Council and management of the City of Long Beach, California, and is not intended to be, and should not be used by anyone other than these specified parties.
Fedak & Brown LLP
Cypress, California
Febrnaiy 14, 2022
CITY OF LONG BEACH, CALIFORNIA
Appropriations Limit Worksheet
September 30, 2021
A. Adopted Appropriations Limit at September 30, 2020
B. Adjustment Factors:
Per Capita Income
Population Increase
Total Adjustment Factor (1.03730000 x 0.99880000)
Annual Permitted Adjustment
C. Adopted Appropriations Limit at September 30, 2021
1.03730000
0.99880000
1.03605524
$ 794,843,874
28,658,287
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