City of Stockton
Stockton, California
Independent Accountants’ Report on
Agreed-Upon Procedures Applied to
Appropriations Limit Schedule
For the Fiscal Year Ended June 30, 2021
ATTACHMENT A
INDEP
ENDENT ACCOUNTANTS’ REPORT ON
APPLYING AGREED-UPON PROCEDURES
To the Honorable Mayor and Members of City Council
of the City of Stockton
Stockton, California
We have performed the procedures enumerated below on the accompanying Appropriations Limit Schedule of the City of Stockton, California (the “City”) for the year ending June 30, 2021. The City is responsible for the Appropriations Limit Schedule.
The City has agreed to and acknowledged that the pro cedures performed are appropriate to meet the intended purpose of meeting the requirements of Section 1.5 of Artic le XIII-B of the California Constitution. The League of California Cities (as presented in the publication entitled Agreed-upon Procedures App lied to the Appropriations Limitation Prescribed by Article XIII-B of the California Constitution) has agreed to and acknowledged that the procedures performed are appropriate for its purposes. 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 respons ible for determining whether the procedures performed are appropriate for their purposes.
The procedures performed 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, 202
1, and verified that the limit and annual calculation factors were adopted by resolution of the City Council. We also verified that the popul ation 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 acco
mpanying Appropriations Limit Schedule, we added the prior year’s limi t 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 agreed th
e 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 agreed the appropriations limit pre
sented in th e accompanying Appropriations Limit Schedule to the appropriations limit adopted by the City Council.
Finding: No
exceptions were noted as a result of our procedures.
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3939352 Pun & McGeady_L_final.pdf 2 1/14/14 3:48 PM
ATTACHMENT A
To the Honorable Mayor and Members of City Council
of the City of Stockton
Stockton, 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 conclusi on, respectively, on agreed-upon pro cedures applied to the appropriations limitation schedule. 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.
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 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
March 4, 2022
ATTACHMENT A
City of Stockton
Appropriations Limit Schedule
For the Year Ended June 30, 2021
See accompanying Notes to the Appropriations Limit Schedule. 3 Amount Source
A. Appropriations Limit FY 2019-2020 363,632,771$ Prior year appropriation limit adopted by the City
B. Calculation Factors:
1) Population increase % 1.0373 California Department of Finance 2) Inflation increase % 1.0106 California Department of Finance 3) Total adjustment % 1.0483 (B1 x B2) C. Annual Adjustment Increase 17,561,782 {(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 17,561,782 (C+D)
F. Appropriations Limit FY 2020-2021 381,194,553$ (A+E)
ATTACHMENT A
City of Stockton
Notes to the Appropriations Limit Schedule
For the Year Ended June 30, 2021
4 Note 1 – Purpose of Limited Procedures Review
Under Article XIIIB of the California Constitution (t he Gann Spending Limitation Initiative), California governmental agencies are rest ricted as to the amount of annual appropr iations 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 the agreed-upon procedures in connection with the annual audit.
Note 2 – Method of Calculation
Under Section 10.5 of Article XIIIB, for fiscal years beginning 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 populati on 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, 2021, represents th e annual percentage change in population for the County of San Joaquin.
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 California 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, 2021, 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, 2021.
ATTACHMENT A