City of Santa Clarita
Santa Clarita, California
Independent Accountants’ Report on
Applying Agreed-Upon Procedures to
Appropriations Limit Schedule
For the Year Ended June 30, 2022
200 E. Sandpointe Avenue, Suite 600
Santa Ana, California 92707
INDEPENDENT ACCOUNTANTS’ REPORT ON
APPLYING AGREED-UPON PROCEDURES
To the Honorable Mayor, City Council and Citizens
of the City of Santa Clarita
Santa Clarita, California
We have performed the procedures enumerated below on the appropriation limit of the City of Santa Clarita, California (the “City”) for the year ended June 30, 2022 . The City’s management is responsible for the
Appropriations Limit Schedule.
The City has agreed to and acknowledged that the procedures performed are appropriate to meet the intended purpose in meeting the requirements of Section 1.5 of Article XIII-B of the California Constitution, which was agreed to by the City and the League of Califor nia Cities (as presented int eh publication entitled Agreed-upon Procedures Applied to the Appropriation s Limitation Prescribed by Article XIII -B of the California Constitution) .
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 completed worksheets used by the City to calculate its appropriations limit for the year ended June 30, 2022, and verified that the limit a nd annual calculation factors were adopted by resolution of the City Council. We also verified that the population and inflation options were selected by a recorded vote of the City Council.
Finding: 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.
Finding: No exceptions were noted as a result of our procedures.
3. We verified the current year information presented in the accompanying Appropriations Limit Schedule to corresponding information in worksheets used by the City.
Finding: No exceptions were noted as a result of our procedures.
4. We verified the appropriations limit presented in the accompanying Appropriations Limit Schedule to the appropriations limit adopted by the City Council.
Finding: No exceptions were noted as a result of our procedures.
To the Honorable Mayor and the Members of City Council
of the City of Santa Clarita
Santa Clarita, California
2 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, respectiv ely, on the accompanying Appr opriations Limit Schedule.
Accordingly, we do not express such an opinion or conclusion. Had we performed add itional 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 information and use of the City Council and the management of the City and is not intended to be and should not be used by anyone other than these specified parties.
Santa Ana, California
Dece
mber 21, 2022
City of Santa Clarita
Appropriations Limit Schedule
For the Year Ended June 30, 2022
See Accompanying Notes to the Appropriations Limit Schedule. 3 Amount Source
A. Appropriations Limit FY 2020-2021 444,856,663$ Prior year appropriations limit adopted by the City
B. Calculation Factors:
1) Population increase % 1.0021 California Department of Finance 2) Inflation increase % 1.0573 California Department of Finance 3) Total adjustment % 1.0595 (B1 x B2)
C. Annual Adjustment Increase 26,478,016 {(B3-1) x A} D. Other Adjustments:
1) Loss responsibility (-) - N/A 2) Transfer to private (-) - N/A 3) Transfer to fees (-) - N/A
4) Assumed responsibility (+) - N/A E. Total Adjustments 26,478,016 (C + D)
F. Appropriations Limit FY 2021-2022 471,334,679$ (A + E)
City of Santa Clarita
Notes to the Appropriations Limit Schedule
For the Year Ended June 30, 2022
4 Note 1 – Purpose of Limited Procedures Review
Under Article XIIIB of the California Constitution (the Gann Spending Limita tion 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 Sec tion 1.5 of Article XIIIB, the annual calculation of the appropriations limit is subject to an agreed upon procedures review in connection with the annual audit.
Note 2 – Method of Calculation
Under Section 10.5 of Article XIIIB, for fiscal years beginni ng on or after July 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.
Note 3 – Population Factors
A California governmental agency may use as its populatio n factor 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 ende d June 30, 2022, represents th e annual percentage change in population for the City.
Note 4 – Inflation Factors
A California governmental agency may use as its inflation factor either the annual percentage change in the 4 th
quarter per capita personal income (which percentage is supplied by the Califor nia Department of Finance) or the percentage change in the local assess ment roll from the preceding year due to the change of local nonresidential construction. The factor adopted by the City for the year ended June 30, 2022, repr esents the annual percentage change for per capita personal income.
Note 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 ended June 30, 2022.