LSLCPAS.COM
INDEPENDENT ACCOUNTANTS’ REPORT ON AGREED-UPON
PROCEDURES APPLIED TO APPROPRIATIONS LIMIT WORKSHEETS
To the Honorable Mayor and Members of the City Council
City of Orange, California
We have performed the procedures enumerated below on the accompanying Appropriations Limit Worksheet No. 6 (or other alternative computation) of the City of Orange, California, for the year ended June 30, 2025. These procedures are the responsibility of the City, which were agreed to by the City of Orange and the League of California Cities (as presented in the publication entitled Agreed-Upon Proc edures Applied to the Appropriations Limitation Prescribed by Article XIII-B of the California Constitution), were performed solely to assist the City of Orange in meeting the requirements of Section 1.5 of Article XIII-B of the California Constitution. The City of Orange's management is responsible for the A ppropriations Limit Worksheet No. 6 (or other alternative computation).
The City has agreed to and acknowledged that the proced ures performed are appropriate to meet the intended purpose of recomputing the Appropriati ons Limit Worksheet No. 6 (or other al ternative computation). 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 us ers of this report and, as such, users are responsible for determining whether the procedures performed are appropriate for their purposes.
The procedures performed and our findings were as follows:
1. We obtained the completed Worksheets No. 1 thr ough No. 7 (or other alternative computations) and compared the limit and annual adjustment factors incl uded in those worksheets to the limit and annual adjustment factors that were adopted by resolution of t he City Council. We also compared the population and inflation options included in the aforementioned worksheets to those that were selected by a recorded vote of the City Council.
Finding: LSL found that the Appropriations Limit present ed to City Council was incorrect based on LSL’s recalculation. The difference was due to the City’s use of the incorrect population factor for the County from the prior year rather than the current year. As a result, the City presented an amended beginning Appropriations Limit to City Council for the year ended June 30, 2026 resolution rather than correcting the resolution for the year ended June 30, 2025.
2. For the accompanying Appropriations Limit Worksheet No. 6, we multiplied line A, last year's limit, by line D, ratio of change and compared the resulting amount to line E, this year's limit.
Finding: No exceptions were noted as a result of our procedures.
3. We compared the current year information presented in the accompanying Appropriations Limit Worksheet No. 6 to the other worksheets described in No. 1 above.
Finding: LSL found that the Appropriations Limit present ed to City Council was incorrect based on LSL’s recalculation. The difference was due to the City’s use of the incorrect population factor for the County from the prior year rather than the current year. As a result, the City presented an amended beginning Appropriations Limit to City Council for the year ended June 30, 2026 resolution rather than correcting the resolution for the year ended June 30, 2025.
To the Hon
orable Mayor and Members of the City Council
City of Orange, California
4. We compared the prior year appropriations limit presented in the accompanying Appropriations Li mit Wo
rksheet No. 6 to the prior year appropriations limit adopted by the City Council for the prior year.
Finding: No exceptio
ns were noted as a result of our procedures.
We were engaged by the City to perform this agreed-upon procedures engagement and conducted our engagement in accordance with attestation standards es tablished by the AICPA. 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 the accompanying Appropriations Limit Worksheet No. 6 (or other alternative computation). Accordingly, we do not express such an opinion or conclusion. Had we performed additional procedures, other matters might hav e 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 information of the City Council and management of the City of Orange and is not intended to be, and should not be, used by anyone other than these specified parties.
Irvine, California
August 11, 2025
To the Hon
orable Mayor and Members of the City Council
City of Orange, California
CITY OF ORANGE
2024-2025
APPROPRIATIONS LIMIT CALCULATION
A.
2023-2024 APPROPRIATIONS LIMIT:
$ 227,430,610
B.
2024-2025 CHANGE IN PER CAPITA PERSONAL
INCOME: 3.62%
C.
2024-2025 CHANGE IN POPULATION: 0.31%
D.
RATIO OF CHANGE (1.0362 x 1.0031)
x 1.03941222
E.
2024-2025 APPROPRIATIONS LIMIT:
$ 236,394,155
($227,430,610 x 1.03941222)