Richmond, California
Independent Accountants’ Report on
Agreed-Upon Procedures Applied to
Appropriations Limit Schedule
For the fiscal year ending June 30, 2021
City of Richmond
Appropriations Limit Schedule
For the fiscal year ending June 30, 2021
Table of Contents
Page
Independent Accountant’s Report on Limited Procedures Review of Appropriations Limit under Article XIIIB of the California Constitution ................................................. 1 Appropriations Limit Schedule .............................................................................................................................. 3 Notes to Appropriations Limit Schedule .............................................................................................................. 4 INDEPENDENT ACCOUNTANTS’ REPORT ON LIMITED PROCEDURES
REVIEW OF APPROPRIATIONS LIMIT UNDER ARTICLE XIIIB
OF THE CALIFORNIA CONSTITUTION
To the Honorable Mayor and City Council
of the City of Richmond
Richmond, California
We have performed the procedures enumerated below to the accompanying Appropriations Limit Schedule of the City of Richmond (City) for the fiscal year ending June 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 Limita tion Prescribed by Article XIII-B of the California Constitution), were performed solely to assist you in meetin g the requirements of Section 1.5 of Article XIII- B of the California Constitution. The City management is responsible for the Appropriations Limit Schedule. 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 report has been requested or any other purpose.
The procedures performed and our findings are described below:
1. We obtained the completed worksheets used by the City to calculate its appropriations limit for the fiscal year ending June 30, 2021, and determined that the limit and annual calculation factors were adopted by resolution of City Council. We al so determined that the population and inflation options were selected by a recorded vote of City Council.
Findings: No exceptions were noted as a result of our procedures.
2. For the accompanying Appropriations Limit Schedu le, 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 presen ted in the accompanying Appropriations Limit Schedule to corresponding information in worksheets used by the City.
Findings: No exceptions were noted as a result of our procedures.
4. We agreed the prior year appropriations limit presented in the accompanying Appropriations Limit Schedule to the prior year appropriations limit adopted by the City Council during the prior year.
Findings: No exceptions were noted as a result of our procedures. 2 To the Honorable Mayor and Members of City Council
of the City of Richmond
Richmond, California
This agreed-upon procedures engagement was cond ucted 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, the objective of which would be the expression of an opinion on the accompanying Appropriation Limit Schedule. Accordingl y, 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 pe rformed with respect to the determination of the appropriation limit for the base year, as defined by Article XIII-B of the California Constitution.
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.
Badawi and Associates
Certified Public Accountants
Berkeley, California
April 23, 2021
City of Richmond
Appropriations Limit Schedule
Amount Source
A. Appropriations limit for the year ended June 30, 2020 408,345,523$ Prior Year Schedule B. Calculation Factors:
1. Population increase % 1.0026 State Department of Finance
2. Inflation increase % 1.0373 State Department of Finance
3. Total adjustment factor % 1.0400 B1*B2 C. Annual Adjustment Increase 16,332,588 [(B3-1)A)] D. Other Adjustments -
E. Total Adjustments 16,332,588 (C+D)
F. Appropriations limit for the year ending June 30, 2021 424,678,111$ (A+E) For the fiscal year ending June 30, 2021
3 City of Richmond
Notes to Appropriations Limit Schedule
For the fiscal year ending June 30, 2021
4 1. PURPOSE OF LIMITED PROCEDURES REVIEW
Under Article XIIIB of the California Constitution (t he Gann Spending Limitation Initiative), California governmental agencies are restricted as to the amount o f a n n u a l a p p r o p r i a t i o n s f r o m p r o c e e d s o f t a x e s .
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.
2. METHOD OF CALCULATION
Under Section 10.5 of Article XIIIB, for fiscal years be ginning on or after July 1990, the appropriations limit is required to be calculated based on the limit for th e fiscal year 1986-1987, adjusted for the inflation and population factors discussed in Notes 3 and 4 below.
3. INFLATION FACTORS
A California governmental agency may use as its inflation factor either the annual percentage change in the 4th quarter per capita personal income (which percenta ge 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 fiscal year 2021 represents the percentage change in the 4th quarter 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 an nual percentage change in population in the County where the jurisdiction is located. The factor adopted by the City of Richmond for fiscal year 2020-2021 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. There were no adjustments made for fiscal year ending June 30, 2021.