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Sacramento, California 95825
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INDEPENDENT ACCOUNTANTS’ REPORT ON AGREED-UPON PROCEDURES
APPLIED TO APPROPRIATIONS LIMIT TESTING
To the City Council
City of Marysville, California
We have performed the procedures enumerated below to the accompanying calculation of the Appropriations Limit of the City of Marysville (City) for the year ended June 30, 2024. 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) have agreed to and acknowledged that the procedures performed are appropriate to meet the intended purpose to assist the City in meeting the requirements of Section 1.5 of Article XIIIB of the California Constitution. The City’s management is responsible for complying with the Appropriations Limit. This report 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 report and, as such, users are responsible for determining whether the procedures performed are appropriate for their purposes.
The procedures and associated findings are as follows:
1. We obtained the City’s calculation of the 2023/2024 appropriations limit and compared the limit and annual adjustment factors included in the calculation to the limit and annual adjustment factors that were adopted by resolution of the City Council in Appendix A.
Finding: The City’s appropriation’s limit computed by the City was understated by $8,864 due to the City rounding the combined adjustment percentage to fewer digits than in the recomputed appropriations limit in Appendix A.
Recommendation: We recommend the City include more digits in the combined appropriations limit factor in the future so there is no rounding difference.
2. We compared the methodology used to determine the cost-of-living adjustment component to Article XIIIB which states that the City may annually adjust the component for either the change in California per capita personal income or, the percentage change in the City’s assessed valuation which is attributable to non-residential new construction. We recalculated the factor based on the above information.
Finding: No exceptions were noted as a result of our procedures as an appropriate factor was used.
However, we noted the City did not use the larger of the City’s or total county percentage change in population, which understated the appropriations limit calculation.
Recommendation: The City should consider recomputing the 2023/2024 appropriations limit using the larger factor.
3. We compared the methodology used to determine the population adjustment component to Article XIIIB which states that the City may annually choose to adjust the component for either the change in population in the County in which the City is located, or the change in population within the To the City Council
City of Marysville, California
unincorporated area of the County in which the City is located. We recalculated the factor based on the above information.
Finding: See finding in item 2 above.
Recommendation: See recommendation in item 2 above.
4. We compared the prior year appropriations limit presented in the accompanying Appropriations Limit Calculation to the prior year appropriations limit adopted by the City Council for the prior year.
Finding: No exceptions were noted as a result of our procedures.
5. We recalculated the 2023/2024 appropriation limit by multiplying the product of the two above factors by the 2022/2023 appropriation limit.
Finding: No exceptions were noted as a result of our procedures.
6. We compared the City’s actual revenues to the computed appropriation limit for fiscal year 2023/2024.
Finding: For the 2023/2024 fiscal year, the City’s actual revenues subject to the appropriations limit did not exceed the appropriation limit adopted by resolution of the City Council.
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, respectively, on accompanying Appropriation Limit Calculation. 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. No procedures have been performed with respect to the determination of the Appropriations Limit for the base year, as defined by Article XIII-B of the California Constitution.
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 should not be used by those who have not agreed to the procedures and taken responsibility for the sufficiency of the procedures for their purposes. However, this report is a matter of public record and its distribution is not limited.
November 14, 2025
APPROPRIATION LIMIT
ADOPTED BY CITY:
Recorded in Final 2023/2024 Budget 22,719,098 $
APPROPRIATION LIMIT
COMPUTATION PER REVIEW:
2022/2023 Appropriation Limit 22,008,233 $
Cost of living factor:
Change in California per capita income 1.0444
Population Adjustment Factor:
Population change in City of Marysville 0.9888
Auditor computed limitation 1.03270272 22,727,962
Variance (8,864) $
APPENDIX A
CITY OF MARYSVILLE
APPROPRIATION LIMIT CALCULATION
Year Ended June 30, 2024