Solvang council adopts FY 2025–26 appropriation limit resolution but will ratify it at next meeting after noticing error

The Solvang City Council adopted a resolution Monday to amend the city's FY 2025–26 appropriation limit to $26,360,000 pursuant to Article XIII B of the California Constitution, but staff said the adoption must be ratified at the next regular meeting because the public hearing notice was published 11 days before the meeting rather than the 15 days required by state law.

Wendy (staff) presented the calculation used to set the limit: the population growth factor was 0.47%, the cost-of-living increase was 6.44% and the resulting combined growth factor applied to the prior limit produced $26,360,000. Staff noted that city general fund revenues are approximately $11,300,000 and that the appropriation limit exceeds current revenues. The public hearing notice was posted June 12; because the period was short of the 15-day requirement, staff advised the council to adopt the resolution and then ratify it at a subsequent meeting to meet noticing rules.

Council members asked whether the mathematics and the formula were correct; staff confirmed the calculations and said the figures were provided by the entity that prepares the limit. No public comment was received during the hearing portion, and the council voted 4-0 to adopt the resolution; staff will seek ratification at the next meeting to satisfy the noticing requirement and to meet the constitutional deadline.

Action: Motion to adopt Resolution No. 25-12-97 (appropriation limit for FY 2025–26) passed 4–0 and will be brought back for ratification at the next regular meeting to correct a noticing defect.