Ci
ty of Stockton
Stockton, California
Independent Accountant’s Report on
Agreed-Upon Procedures Applied to
Appropriations Limit Schedule
For the Year Ended June 30, 2024
ATTACHMENT A
6 Hutton Centre Drive, Suite 1200
Santa Ana, California 92707
INDEPENDENT ACCOUNTANT’S REPORT ON
APPLYING AGREED-UPON PROCEDURES
To the Honorable Mayor and the Members of City Council
of the City of Stockton
Stockton, California
We have performed the procedures enumerated below on the appropriation limit of the City of Stockton, California (the “City”) for the year ended June 30, 2024. 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 by 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). 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 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, 2024, and verified that the limit and 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.
ATTACHMENT A
To the Honorable Mayor and the Members of City Council
of the City of Stockton
Stockton, California
Additional Matter: During our procedures, we noted that the Appropriations Limit originally adopted by City Council Resolution No. 2023-06-20-1601 on June 20, 2023, reflected an amount of $441,817,074, which did not agree to the supporting calculation amount of $463,417,917. The difference of approximately $21.6 million represented the current year adjustment. The City subsequently re-adopted the resolution on August 12, 2025, to correct the amount. As this corrective action has been taken through formal re -adoption, no further findings are required.
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 the accompanying Appropriations Limit 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. However, this report is a matter of public record and its distribution is not limited.
Santa Ana, California
September 17, 2025
ATTACHMENT A
City of Stockton
Appropriations Limit Schedule
For the Year Ended June 30, 2024
Amount Source
A. Appropriations Limit FY 2022-2023
B. Calculation Factors:
$ 441,817,074 Prior year appropriation
limit adopted by the City
1) Population increase % 1.0043 California Department of Finance 2) Inflation increase % 1.0444 California Department of Finance 3) Total adjustment % 1.0489 (B1 x B2)
C. Annual Adjustment Increase 21,600,843 {(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 21,600,843 (C+D)
F. Appropriations Limit FY 2023-2024 $ 463,417,917 (A+E)
See accompanying Notes to the Appropriations Limit Schedule. 3 ATTACHMENT A
City of Stockton
Notes to the Appropriations Limit Schedule
For the Year Ended June 30, 2024
Note 1 – Purpose of Limited Procedures Review
Under Article XIIIB of the California Constitution (the Gann Spending Limitation 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 Section 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 population 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 ended June 30, 2024, represents the 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 assessment 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, 2024, represents 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, 2024.
Note 6 – Subsequent Re-adoption of Appropriations Limit The City Council originally adopted the Fiscal Year 2023-24 Appropriations Limit of $441,817,074 on June 20, 2023, under Resolution No. 2023-06-20- 1601. During subsequent review, it was identified that this amount did not agree to the supporting calculation of $463,417,917, due to a clerical error in applying the current year adjustment. On August 12, 2025, the City Council re -adopted the resolution to correct the appropriations limit to $463,417,917.
4 ATTACHMENT A