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Home My WebLink AboutCity Gann Final 6-30-10 2-16-11CITY OF LAKE ELSINORE APPROPRIATIONS LIMIT WORKSHEET NO.6 WITH INDEPENDENT ACCOUNTANTS' REPORT ON AGREED -UPON PROCEDURES APPLIED TO APPROPRIATIONS LIMIT WORKSHEET FOR THE YEAR ENDED JUNE 30, 2010 DIEHL, EVANS & COMPANY, LLP CERTIFIED PUBLIC ACCOUNTANTS & CONSULTANTS A PARTNERSHIP INCLUDING ACCOUNTANCY CORPORATIONS 5 CORPORATE PARK, SUITE 100 IRVINE, CALIFORNIA 92606 -5165 (949) 399 -0600 • FAX (949) 399 -0610 www.diehlevans.com MICHAEL R LUDIN, CPA CRAIG W. SPRAKER, CPA NITIN P. PATEL, CPA ROBERT J. CALLANAN, CPA *PHILIP H. HOLTKAMP, CPA *THOMAS M. PERLOWSKI, CPA *HARVEY J. SCHROEDER, CPA KENNETH R AMES, CPA WILLIAM C. PENTZ, CPA February 7, 2011 *A PROFESSIONAL CORPORATION INDEPENDENT ACCOUNTANTS' REPORT ON APPLYING AGREED -UPON PROCEDURES APPLIED TO APPROPRIATIONS LIMIT WORKSHEET To the Honorable Mayor and Members of the City Council of the City of Lake Elsinore Lake Elsinore, California We have applied the procedures enumerated below to the accompanying Appropriations Limit Worksheet No. 6 of the City of Lake Elsinore, California for the year ended June 30, 2010. These procedures which were agreed to by the City of Lake Elsinore, California and the League of California Cities (as presented in the League publication entitled "Article XIIIB Appropriations Limit Uniform Guidelines ") were performed solely to assist the City of Lake Elsinore, California in meeting the requirements of Section 1.5 of Article XIIIB of the California Constitution. The City of Lake Elsinore management is responsible for the Appropriations Limit Worksheet No. 6. This agreed -upon procedures engagement was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants. 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 for any other purpose. The procedures performed and our findings were as follows: We obtained the completed Worksheet No. 6 for the year ended June 30, 2010 and compared the limit and annual adjustment factors included in that worksheet to the limit and annual adjustment factors that were adopted by resolution of the City Council. We also compared the population and inflation options included in the aforementioned worksheet to those that were selected by a recorded vote of the City Council Finding?: No exceptions were noted as a result of our performing this procedure. -1- OTHER OFFICES AT: 2965 ROOSEVELT STREET 613 W. VALLEY PARKWAY, SUITE 330 CARLSBAD, CALIFORNIA 92008 -2389 ESCONDIDO, CALIFORNIA 92025 -2598 (760) 729 -2343 • FAX (760) 729 -2234 (760) 741 -3141 • FAX (760) 741 -9890 2. For the accompanying Appropriations Limit Worksheet No. 6 we added last year's limit to the total adjustments, and compared the resulting amount to this year's limit. We also recalculated the adjustment factors, and the adjustment for inflation and population, and compared the results to the amounts on Worksheet No. 6. No exceptions were noted as a result of our performing this procedure 3. We compared the prior year appropriations limit presented in the accompanying Appropriations Limit Worksheet No. 6 to the prior year appropriations limit calculated by the City. No exceptions were noted as a result of our performing this procedure. In the prior year, we noted that the appropriations limit for fiscal year 2008 -2009 was never adopted by a resolution by the City Council. Therefore, the prior year appropriations limit used in this procedure was the limit calculated by the City. We were not engaged to, and did not perform an audit, the objective of which would be the expression of an opinion on the accompanying Appropriations Limit Worksheet No. 6. Accordingly, 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 performed with respect to the determination of the appropriations limit for the base year, as defined by the League publication entitled "Article XIIIB Appropriations Limitation Uniform Guidelines ". This report is intended solely for the information and use of the City Council and management of the City of Lake Elsinore, California and is not intended to be, and should not be, used by anyone other than these specified parties. G +a 4c GA.v►..�., t l 1. -2- CITY OF LAKE ELSINORE APPROPRIATIONS LIMIT WORKSHEET NO. 6 For the year ended June 30, 2010 Appropriations limit for fiscal year ended June 30, 2009 Adjustment factors for the fiscal year ended June 30, 2010 (see Note 2): Inflation Population Factor Factor Combined (Note 3) (Note 4) Factor 1.00620000 1.0143 0000 1.02058866 Adjustment for inflation and population Other adjustments (Note 5) Total adjustments Appropriations limit for fiscal year ended June 30, 2010 $60,116,508 x .02058866 1,237,717 1,237,717 61.3 54,225 Unaudited; see independent accountants' report on agreed -upon procedures applied to appropriations limit worksheet and accompanying notes. -3- CITY OF LAKE ELSINORE NOTES TO APPROPRIATIONS LIMIT WORKSHEET NO. 6 For the year ended June 30, 2010 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 a limited procedures review in connection with the annual audit. 2. METHOD OF CALCULATION: Under Section 10.5 of Article XIIIB, for fiscal years beginning on or after July 1, 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 at Notes 3 and 4 below. 3. INFLATION FACTORS: A California governmental agency may adjust its appropriations limit by either the annual percentage change in the 4th quarter per capita personal income (which percentages are supplied by the State Department of Finance), or the annual percentage change in the local assessment roll due to local nonresidential new construction. The factor used by the City of Lake Elsinore for the fiscal year 2009 -2010 represents the annual percentage change in per capita income published by the California Department of Finance. 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 annual percentage change in population in the County where the jurisdiction is located. The factor used by the City of Lake Elsinore for fiscal year 2009 -2010 represents the annual percentage change in population for the City of Lake Elsinore. 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 of Lake Elsinore had no such adjustments for the year ended June 30, 2010. Unaudited; see independent accountants' report on agreed -upon procedures applied to appropriations limit worksheet. -4-