1992 City Limit Worksheet #6I
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CITY OF ROSEMEAD
APPROPRIATIONS LIMIT WORKSHEET #6
JUNE 30, 1992
McGLADREY & PULLEN RSM
' ® Certified Public Accountants and Consultants international
I ANNUAL REVIEW COMPLIANCE LETTER
To the Honorable Mayor
' and Members of the City Council
City of Rosemead
Rosemead, California
' We have applied the procedures enumerated below to the accompanying Appropriations
' Limit Worksheet #6 of the City of Rosemead for the year ended June 30, 1992. These
procedures, which were agreed to by the League of California Cities and presented in their
Article XIIIB Appropriations Limitation Uniform Guidelines, were performed solely to
' assist you in meeting the requirements of Section 1.5 of Article XIIIB of the California
Constitution. This report is intended for the information of management and the City
Council. This restriction is not intended to limit the distribution of this report, which is a
' matter of public record.
The procedures performed and our findings were as follows:
' 1. We obtained the City's computations of the Article XIIIB Appropriations Limitation
and determined that the limit and annual adjustment factors were adopted by resolution
' of the City Council. We also determined that the population and inflation options were
selected by a recorded vote of the City Council.
' 2. For the accompanying Appropriations Limit Worksheet #6, we added Line A, June 30,
1991 appropriations limit, to Line E, total adjustments, and agreed the resulting amount
to Line F, this year's limit.
3. We agreed the current year information presented in the accompanying Appropriations
Limit Worksheet #6 to the other worksheets described in #1 above.
4. We agreed the appropriations limit for the year ended June 30, 1990 presented in the
accompanying Appropriations Limit Worksheet #6 to the appropriations limit adopted
by the City Council for that year.
' Suite 300 Worldwide
140 South Lake Avenue Services
Pasadena, California 91101-2651 Through
' (818) 795-7950 FAX (818) 795-9820 1 RSM International
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' Pasadena, California
October 23, 1992
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These agreed upon procedures are substantially less in scope than an audit, the objective
of which is the expression of an opinion on the accompanying Appropriations Limit
Worksheet #6. Accordingly, we do not express such an opinion.
Based on the application of the procedures referred to above, the following matter came to
our attention that caused us to believe that the accompanying Appropriations Limit
Worksheet #6 was not computed in accordance with Article XIIIB of the California
Constitution.
The City calculated its Appropriations Limit for the fiscal year ended June 30, 1991 based
on the price factors that were in effect prior to Article XIIIB. The City used the change in
the Consumer Price Index instead of either the annual percentage increase in fourth quarter
per capita personal income or the percentage increase in the local assessment role from the
preceding year due to the addition of local nonresidential construction. The City also used
the increase in the City's population growth rate instead of the greater of the City
population growth rate or the County population growth rate. The City used the correct
price and population factors for the fiscal year ended June 30, 1992. However, the City
calculated its Appropriations Limit at June 30, 1992 based on the incorrect Appropriations
Limit at June 30. 1991.
Had we performed additional procedures or had we made an audit of the accompanying
Appropriations Limit Worksheet #6 and the other completed worksheets described in #1
above, additional matters might have come to our attention that would have been reported
to you.
Y& Ao"
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CITY OF ROSEMEAD
APPROPRIATIONS LIMIT WORKSHEET #6
For the Fiscal Year Ended June 30, 1992
(Unaudited)
A. Appropriations limit for year ended
June 30, 1991 (see Notes 2, 3 and 4)
B. Adjustment factors (see Notes 2, 3 and 4):
Price Population Combined
Fiscal Year Ended (Note 3) (Note 4) Factor
June 30, 1992 1.0414 1.0173 1.0594
Total Adjustment Factor
C. Adjustment for price and population
D. Other adjustments (Note 5)
E. Total adjustments (Lines C plus D)
F. Appropriations limit for fiscal year
ended June 30, 1992 (Lines A plus E)
See Notes to Appropriations Limit Worksheet #6.
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Recalculated
Published for Article
Budget XIIIB
$ 15,232,760 $ 15,153,980
x
.0594
x
.0594
$
905,108
$
900,146
$ 905.108 $ 900.146
16.137.868 $ 16.054.126
CITY OF ROSEMEAD
' NOTES TO APPROPRIATIONS LIMIT WORKSHEET #6
For the Year Ended June 30, 1992
' See Accountant's Report
I Note 1. Purpose of Limited Procedures Review
' Under Article XIIIB of the California Constitution, California governmental agencies are
restricted as to the amount of annual appropriations from the 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.
' Note 2. Method of Calculation
' For the fiscal years beginning on or after July 1, 1990, the City has the option of calculating
its appropriations limit based on the limit for the fiscal year ended June 30, 1987, adjusted
' for the price and population factors discussed at Notes 3 and 4 below, in accordance with
Section 10.5 of Article XIIIB. The City has not elected to recalculate its appropriations
limit based on the new factors for the fiscal year ended June 30, 1988, 1989 and 1990.
' Note 3. Price Factors
' A California governmental agency may increase its appropriation limit by either the annual
percentage increase in the 4th quarter per capita personal income or the percentage
' increase in the local assessment roll from the proceeding year due to the addition of local
nonresidential construction. Amounts adopted by the City of Rosemead for the fiscal year
ended June 30, 1992 represent annual percentage increases for per capita personal income.
' As stated as a finding in the annual review compliance letter, amounts adopted by the City
of Rosemead for the fiscal year ended June 30, 1991 represent annual percentage increases
in the consumer price index.
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NOTES TO APPROPRIATIONS LIMIT WORKSHEET #6
See Accountant's Report
I Note 4. Population Factors
' A California governmental agency may increase its appropriation limit by either the
percentage increase of the jurisdiction's own population growth or the percentage increase
in population growth in the county where the jurisdiction is located. Amounts adopted by
the City of Rosemead for the fiscal year ended June 30, 1992 represent the greater of
annual population growth factors for the County of Los Angeles or the City of Rosemead.
As stated as a finding in the annual review compliance letter, amounts adopted by the City
of Rosemead for the fiscal year ended June 30, 1991 represent the annual population growth
factors for the City of Rosemead and not the greater of the City of Rosemead and the
County of Los Angeles.
t Note 5. Other Adjustments
A California government agency may be required to adjust its appropriation 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 Rosemead had no such
adjustments for the year ended June 30, 1992.
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