City Council — June 22, 2026

Good evening everyone and welcome to the June 22, 2026 meeting of the Solvang City Council. Please turn off or silence your phones and we'll get underway. Madam Clerk would you read the roll call? We're beginning at 630. I know you like this having me put the time in the record. Would you call a roll call please?

Thank you

We have a proclamation this evening, which is bittersweet. It's the retirement of one of our own here in the community and so but it's I know it's a good thing too. Proclamation for Anne McCarty Retirement. Whereas after more than 30 years of dedicated service to the North County Rape Crisis and Child Protection Center, including 10 years as Executive Director, Anne McCarty is retiring. And whereas throughout her tenure, Anne established essential partnerships in Solvang and across Santa Barbara County and was instrumental in the integrating human trafficking advocacy into the center's mission.

She has served on the Santa Barbara Human Trafficking Task Force since its inception in 2012 and is currently a member of the leadership team. And whereas her leadership fostered key collaborations with AAUW, And peddle the Pacific to combat human trafficking. Additionally, Anne has been a vital presence on the Child Abuse Prevention Council, Kids Network Executive Committee, First 5 Communications Committee, the K-12 School Action Group and the Lompoc Youth Violence Coalition. And whereas Anne supported by her husband Bob has made a profound difference in our community Now therefore be it resolved that I, Mayor David Brown along with the City Council of the city of Solvang California do hereby honor Ann's leadership and acknowledge needed to open doors in her efforts in working with the residents of Solvang to educate people on the issues of rape sexual assault child abuse and human trafficking.

And witness thereof, I have here unto set my hand and cause the official seal of the City of Solvang California to be affixed this 22nd day of June 2026. Ann, congratulations and thank you so much for all you've done.

Only a few? You know when I stood here in April, I thought well I probably should say something since that would be my last time in front of you. I never imagined that anything like this would happen. Mayor Brown, members of the City Council thank you so much for this honor You know, when I announced my retirement back in October, I thought, gosh, June will never get here.

And here we are, June 22nd. I've got six days left and I'm nowhere near being done. Part of me feels like I'm nowhere near being done with my career but I know it's time to step aside and let the organization continue to flourish under new leadership And I'm excited about that. I'm excited for our new leaders to continue to work with City of Solvang officials, with community members, with other nonprofits that are here in the Valley and I'm just so appreciative All the years that I've had to be able to work with individuals in this community from other community leaders, from other nonprofit leaders. You know what it takes?

It truly does take a village in order to do this work. There's absolutely no way We could do it by ourselves. And every time I stand up in front of you and I say that the City of Solvang has taken a stance against sexual assault, child abuse, human trafficking, exploitation, I mean that. I see it in the brochures that you have around town. I see it in the signs that you have on your doors. I see it in the messages that your other community leaders are spreading, so I thank you.

I thank you for allowing me this space to come in front of you a couple times a year and especially tonight. This means so much to me. You know, I take Xanax so I don't get emotional. I'm just kidding. I am trying my best not to lose it like I normally would simply because leaving is hard. I have thoroughly enjoyed the last 32 years, maybe not every single day. It's kind of like when you say, I love my husband but I don't like him very much right now. You know, it's kinda like that It's like what I heard.

See, my job is like that our job is like that this work is hard but once again there's absolutely no way that we can do this work in this community without your support and we are truly thankful and grateful for lifting us up when we needed to be lifted up and supporting us all along the way so thank you thank you so much

Thank you, thank you Ann and congratulations. There's going to be a huge legacy to fill on your behalf but you've left a great path for those to follow so thank you for that. Okay we have no presentations but we do have some. We'll move on to public communications would you read that in the record please?

public comments first.

Okay thank you Denise Alameen followed by Bill Ballou

Hi, I'm Denise Ellamine and I am here to talk about some of the consent items. So the one thing that I wanted to talk about was the crossing guard services We're paying $150,000 for two years and we're paying a million five for sheriff contract for the police. So I'm kind of confused that why aren't the police Supplying the guards, I guess this is for Christmas when you can't turn a corner without somebody walking through. So my thing is and you guys it's on the consent agenda so you're just going to say we approve it and then it moves on.

And the second one is the agreement with Carrillo Engineers. And this is for the WWTP, which is the Water Quality Project. This particular engineering company was hired back in 2020 and I think we're in 2026 And it appears that we have a pattern here in Solvang, that we extend contracts with no additional charges. And then once they come up with more charges, then we extend the amount of money. So this is extending his contract But there is no dollar amount to it. The next time they come on the consent items, then the dollar amount will be there. It would be nice if we could do it all at the same time and not in increments. And also I read that the water, the WWTF, I want to make sure I have it right because I'm always being said that I am not telling the truth.

This is the long-term outlook. The budget highlights the importance of continued fiscal discipline and long term financial planning while the fiscal year 2026 operating budget remains balanced, the city's forecast through fiscal year 2036 shows growing pressure on the general fund water and wastewater funds are projected So, I just want to say that We need to do better.

Good afternoon, Mayor Brown, members of the Council, esteemed guests. Thank you for the opportunity to speak today. My name is Bill Bulow, General Manager of the San Ynez River Water Conservation District. I'm here today to talk about the most recent objection letter dated June 12 from the City of Solvang concerning the conservation district's rate study Each year the district must do a rate study to comply with Proposition 26 and to set its groundwater pump charge for the next fiscal year.

This year, the primary objection of the city was the misinterpretation of one sentence on page six of our rate study in which the term right-to-pump was conflated with water rights, which is a whole different topic. Regarding the city's water right, the Conservation District very much agrees with the city that it does not or cannot grant or take away water rights.

In consideration of the city's objection, the district's board made editing changes to its rate study and resolution during the board meeting last week. A copy of the change pages and the response to our objections and the letter from the city are in a packet I have here I'll hand out. We believe these changes address the main concern raised by the objection letter of the city and were made to the satisfaction of your staff who attended the meeting.

To be clear, the Conservation District protects water rights. An example of the district's commitment to protecting the city's water rights is that since 2023, the district has dedicated staffing and financial resources to support Solvang and its council with the permit of this new well during the state board administration hearing office proceedings. To date, the district has spent nearly $100,000 to support Solvang during these efforts.

Given the support the district has provided and our longstanding relationship, this overreaction to our rate study by city staff last week Monday's board meeting was both shocking and disappointing. This all could have been avoided and handled with a simple phone call. Rather than threatening litigation and devolving the relationship between our two agencies in continuing this disagreement, we must come together and work towards common goals and unite against the many outside threats to our valley's water supply.

The district has always been and will continue to be here to help the city As always, we appreciate the interest and collaboration by the City of Solvang on matters we have in common. And I thank you for your time.

Thank

you. Am I allowed to hand these

out? If you give them to our clerk she'll hand it out accordingly Thank you very much. Is there anyone online? That's the last slip that I have for public comment. Nobody online, anybody else in our audience? Thank you we're closing then Public Communications and

Yes thank you Mr. Mayor, Council. A couple of items to talk about tonight We have the 4th of July event next weekend and parade, and I want to read a message that was published in our recent newsletter and will also be shared on social media circles as a reminder to our residents and anybody who might be watching or listening online. As we prepare to celebrate Independence Day, the City of Solvang kindly reminds residents and visitors that chairs blankets coolers and other personal items may be placed along the parade route beginning no sooner than 6 p.m on July 3rd To help ensure public safety and maintain compliance with ADA accessibility requirements, all sidewalks, curb ramps, driveways, crosswalks and other public rights of way must remain clear and unobstructed at all times.

Items placed in these areas or in a manner that restricts pedestrian access may be removed. Keeping sidewalks and public pathways clear helps ensure accessibility for all community members and allows everyone to safely enjoy the festivities. We appreciate your anticipated cooperation in helping keep Solvang welcoming and accessible for all. Thank you, and have a safe and enjoyable holiday." That's from our marketing and Parks & Rec group.

Also, I know there's been some interest expressed. We did a survey regarding the Freedmen's Board Canyon and the one-way analysis that was being done and that should be coming to a council meeting near you soon. I don't have an exact date and I apologize for the delay but there have been a lot of other pressing matters not the least of which was the budget and so we're getting real close if not at the next meeting certainly by the meeting in August Jennifer Cabello wanted me to remind everybody about the Golden Garden thing. I shared the video with you all last meeting.

Residents will be able to nominate themselves or even a neighbor Majority field deserves recognition. There are three categories, most beautiful celebrating outstanding visual appeal and landscaping. Most drought tolerant highlighting water wise landscaping and sustainable choices. And exceptional example of defensible space creating a landscape that protects your home while enhancing our community's safety That video, Jennifer said the spring would end on May 31st but actually it's been extended to the end of June. So please again nominate yourself or somebody else that you want to have the recognition and a link to apply is on our website and social media pages.

And that's all I have for now.

Thank you any questions of the City Manager?

Randy, did you want to make any comments about the fire at the Mission hillside or the open field? I think there was a lot of consciousness about that. And we're doing a ton of weed abatement but I want to make sure community is thinking through as we go into 4th of July weekend some fire safety techniques as well.

So we're in the process of working with the county and adjoining jurisdictions or adjacent jurisdictions, Billton, The Tribe and Lompoc about getting community wildfire protection plan. We've allocated funding for that in next year's budget which will be adopted hopefully later this evening and it will be a valley-wide look at I think you were wanting to So we had an incident recently over on the Mission property, where some disking was being done and it started a small fire.

And people tried to put it out themselves instead of calling 911 first. So fortunately it was not a particularly windy day. Had it been a windy day it would have gotten out a lot. Somebody finally called Thank you. Any other questions? Okay.

We'll move on to item 5. Would you read that into the record please, Ms. Clerk?

Government Code Section 53232.3d aka AB 1234 and Government Code Section 84308 aka SB 1439 report out. Ex parte communications council comments requests.

Thank you. Anyone want to start off? Okay Mr. Alfonte

I attended the library advisory committee, the Santa Barbara Library Advisory Committee with a representative from Buellton and representatives from all libraries. For those of you that have kids who are familiar with it, Rainbow, Reading Rainbow has started again and they actually did a filming down at the Santa Barbara Library. So this is a national kids reading program, so it was very interesting. All the librarians thought it was terrific. I don't know anything about it.

Anyway that's it thank you.

Thank you. Do we have anything? Ms Smith?

I'm usually not so social, but I was rather social this last week. I was invited by one of the board members of the Lompoc Theater Project to tour the theater. So I did so and learned a lot about what they are doing and after that tour they did host a dinner at one of the local restaurants afterwards that I did attend I also attended the Santa Barbara Vintners annual meeting at the Marriott in Buelton last week.

Learned about everything that they're doing right now. Also was, I loved, I went to the first night of the new Susan Williams music in the park There's great attendance. I actually saw people I know from Santa Barbara, from Santa Maria so people were coming like far and wide and then I did attend the Elver Hoy Museum fundraiser at Vega Vineyard on Saturday night and Mark was there and Randy was there and I forgot to mention that one thank you.

And Jose was there. Thank you

sounds like a small group of friends we stayed

apart I also attended the second Parks and Rec. I want to say a couple of things. The way the meetings are being facilitated is really great and quite interesting because we're being asked to be thorough, thoughtful about what we wish we would have had from 20 years ago and think forward 20 years from now so that we are Not thinking of the project in a tactical way, but really what do we believe the community will need from a long-term investment and a long term recreation perspective. So I will say that the material will be shared in a future public meeting But it looks just really really exciting The ideas that are coming forward for the community so Make sure I attend all of those meetings. Also attended a dinner at the Senior Center, just their annual board meeting hosted dinner and got a chance to check in on that part of the community who's getting pretty excited about the Late fall opening of their facility.

Checked on the next month's agenda and still didn't see our design guidebook anywhere on the agenda. So it feels like yet another year has gone by and we don't have this really critical framework for how we make design decisions in this city, I'm going to ask Really firmly, we need to see that within the next 30 days. Come through and we need to understand the process and we need to accelerate some acceptance of it given the docket of how much development we have going on in this city It's a really critical missing element So I would appeal to see that and then while I'm at it appeal to see We've got some Artifacts and correspondence from the community about the Alice L. Glenn project, a very long roster of signatures on a document that looks like they're looking for attention on this project so I'm going to ask again that we do our own traffic study Thank you.

Mr Murphy?

To address the design guidelines, it's my understanding that it is slated to be heard by the Planning Commission on their July 6th meeting. I believe this is the first Monday in July and then it will come to the Council probably at the meeting in August.

Does the DRC see it too? Do they review it or are they

already at it? I don't believe it's going to DRC. It's a design

guidebook.

Maybe it already has, I think they've kind of vetted through it. Just kind of dotting I's and crossing T's and getting Planning Commission to review it. I'm almost positive it's going to their July meeting.

Yeah move it toward the front burners that's the hope okay I'd like to did you have anything else On the 10th of June, I attended the sub-regional SCAG meeting. Most of that discussion was part 101 through Buellton and the closures of those of you at Vega Vineyards know that the Santa Rosa Roads off ramps are closed And then also they're getting bids in preparation for another passing lane on 246 west of Buellton.

Toward toward Lompoc. There was one item there was another zoom meeting on the 17th I attended regarding this Santa's Valley Trail with Supervisor Hartman and staff and just kind of an update, I'm sorry let me take it as Hartman wasn't there it was with the Then there was on the same day, there was the Santa Ana Valley Bike Advocacy Zoom call talking about biking here in the valley and adding a couple of board advisors.

On the 19th, I was at the California League of Cities in Ventura where we represented Solvang and it was interesting. Our Senator Pro Tem Monique Lamone was there, gave some remarks and had to leave right away because of the budget in Sacramento so that was on her mind But it's good to know that we have a good working relationship with Sacramento. And then today, this morning or actually this afternoon I gave some welcoming remarks to One West which is a conference here in town as it relates I was invited by Shelby Sims of SYV, Visit SYV.

And then I wanted to bring up the, it's been brought to my attention that there's been requests for public records that are captivating and costing our city a great deal of money. I'd like to see if we could direct staff to. If there's some way to recoup some of these costs, that's a big significant amount on a small city. And I hope that there is something you can come up with in that regard.

I was going to say there was an item, Assemblywoman Pacheco had a bill in front of the legislature recently. I want to say 1281, I don't remember that's the number for sure but something like that about being able to recoup some fees last I saw it was still in the legislature I'm not sure that any action will be taken on it before the end of the legislative year, but there is an effort at the state level. They recognize that some of these Malicious and or onerous public records requests are taxing the local jurisdictions financially. The specific issues that Mayor Brown is talking about, two of them combined just an attorney's fees for reviewing records is over $50,000 and then by the time you add staff review time it's easily double that number so It can be quite problematic for these broad brush requests, so I shared that with him on my meeting last week and I was going to include that in my staff report to you last time but I forgot.

So I apologize

No worries. Then finally I'd like to get the board's approval to get a, I'd like to add an amendment to the Code of Ethics that we passed last time. The amendment basically because we use the words alleged and accusation or allegations if there is There's allegations or accusations that have been fabricated, false or malicious or malice. I would propose that that individual would also be in direct violation of said code of ethics and I can't think of a reason why not but I'm sorry this is something I'd like to get agreement to bring back to the agenda

Get my mic on. We wouldn't be able to take action on that this evening, you could request that the...

I'm requesting that we bring it back for such an amendment.

You want to bring back an item to revisit the ethics code and at that point you could propose your suggested amendment? That's correct. So we need to get council majority agreement on whether to bring that

back. Just a nod basically is that I'm not making an emotion just would that be acceptable to have something of that nature?

So you cannot make a decision as a body tonight on whether you would like, whether that particular amendment is appropriate all you can decide is whether you want to bring it back to revisit the ethics code. That's exactly what I wanted.

Not sure I follow why or what was the issue but we were 4-1 on that, I thought.

It was afterthought after it was approved because I had only seen it the day before and didn't have ideas that I would like to bring back so I was just asking for an amendment or at least discussion whether or not we do it is not the point. I'd like to bring it back and see if that would be something that we could add.

I don't hear a rationale, Dave.

Yeah, I'm not understanding the reasoning for it.

I'll present it at some other time. Very well. Is there anybody else have anything else to add tonight? Okay we'll move on to consent items. Would you read that into the record please?

Consent is for routine administrative city matters and is approved with one motion. These items are discussed only on the request of council members Members of the public were afforded an opportunity to speak during the public communications portion of this agenda

Thank you Okay For I'd like to bring or pull item D, 6D if I may. That would be my request and I'd like to get some clarification on a couple of points. D as in David? D as in David, 6-D Delta.

Fine with that. So I'll make a motion to approve consent item 6A, B, C, E and F and I won't just make a comment I asked a number of questions about the SYVT monthly report and I just want to say the answers were quite thorough thank you for that it was just educational as opposed to accepting the and receiving the data.

Very well I'll second the motion It's been moved and seconded to accept items and the consent items 6 a b c e and f roll call please.

motion passes 5-0

Thank you. Okay, let's go to item 6D as in Delta. My concern on that was that it only represents or states the Veterans Building for security issues as well as the crossing guards, but it doesn't mention anything about Solvang Park. With the music festivals getting larger and events that go on there, it's just as busy as a veterans building area and I'd like to see if that is included in that contract or if it was specifically excluded. I just don't see it anywhere in this report.

It is not budgeted, but there is a little bit of room where we probably could potentially add it. But it hasn't been budgeted.

There are private individuals or companies that will rent the park just like they will rent the Veterans Building?

So yeah when there is a special event and they are serving alcohol this company does do security for Solvang Park or in downtown Solvange.

In that example, though we wouldn't necessarily fund... That wouldn't come out of our budget. It would come out of whoever's planning

it. But there's other events like the music in the park where alcohol is available for guests or groups that bring it. It's not for sale but it doesn't mean it's not available. And it might be also from a traffic perspective. I'm just thinking as public safety and if this contract would include potential...

It currently does not.

Okay, what would it take to include it? Is that a whole new negotiation or is that an add-on? We just have to

we would have to rewrite the contract in budget added in the budget

Very well.

We have not anticipated that need, we can certainly talk to them and see if they would be willing to do that it would be at that $35 an hour times however many hours times however many people. At this point we've not needed it and obviously ounce of prevention is worth a pound of cure as they say but it comes at a cost

yeah but it also It comes at a cost when we use it. It's cafeteria style, correct? Yes. If we have it then we spend the money if we don't but this is our go-to vendor for that service.

Correct

If it pleases the board, I'd like to send it back to add that language to include the park.

Don't we... Okay so we hire these people because they're less expensive than the Sheriff's Department but doesn't the sheriff also manage what would happen at the park?

Yeah we could call 9-1-1 and they would respond

Right, so I wouldn't have to have somebody there necessarily all the time and pay for that but we can call Sheriff and they'll show up and take care of things. I think that's what we've been handling right?

That's what we've been doing basically yes.

I mean I was intending to go to the music in the park this past week when I drove by after the Senior Center dinner there was like it was no room but I'm just curious is Do we think we need, have we had incidents where we think we need security that or is this more like traffic control and parking help? More

than anything it's a presence.

A presence. I've got the sense it was a pretty happy, easy event. Is that not... We need

some enforcement? It's exactly the same thing. Like I said, I'd rather be safe than sorry. And it wasn't included in the contract and I said why not? That property should be included whether we use it or not and how we use it but that way we're not reinventing the wheel down the road That was my

thought. So you're suggesting putting it in the contract and if we decide at some one of these Wednesday events that we want to have somebody, we bring them in but we don't

do it for every Wednesday event? You know I leave that to Parks and Recreation but I didn't want the People pay for the service now when they rent the hall. So if they rent the park, here's an option as well.

Right so I think in this situation we would charge the organization who is putting the event on We would charge them pass those fees onto them So I think in this case, you know we probably need to be careful about that because that could put additional expenses on the chamber unless council is suggesting that the city pays for that.

Could we try something which is maybe notifying? I don't know what kind of communication we've had with Sheriff, but the deputy on call for that particular evening. Could we try to ask them to have an increased presence, not to distract from their patrol activity, but maybe they stop by two times in the evening and make sure they're visible to try that first

before we invoke more costs. I was just wanting them to give you full, more rain and more latitude if that was something that you might need. If it's something you think is a you know the mayor's he's on third base and there's two outs so You know, it was just really because it wasn't included as a property that we control.

Right well and they are here at Solvang Park they are here for the tree lighting and that's at Solvang Park for you know the maker's market and it is more expensive this year because we are anticipating them coming back for more events you know like Makers Market or just busy downtown days. So, you know it's certainly not set as Solvang Park but they can very much be in Solvang.

If it's not necessary, no problem I just didn't want to exclude it or think that you didn't have the latitude for it. So, I'll leave it to y'all if this is the way you like it, I'm okay with it but I just wanted to make sure that you had all you need for security purposes.

Might I suggest at the council go ahead and approve this agreement we will talk to the contractor about being available more and if necessary we'll come back and amend the agreement at a future date.

Sorry but is this, is it fixed fee?

It's

35. Because it's for two years so I didn't think it was fixed fee. Okay so you have a provision in here where you can, the city manager sorry I had my oh the additional tasks can be assigned

yeah

so It doesn't sound like we require an amendment or an adjustment to the contract. It would imply you might have additional cost if you go beyond all the scope that we had used to estimate the $150,000. But I think you have the ability to do what you need. Or to do what the Mayor is suggesting. Correct.

Yeah it would just be a an amendment for cost.

If necessary.

And we can certainly ask the Sheriff

Motion passes 5-0. Okay, we're moving on to their public hearings. Would you read the end of the record please for 7A?

Public hearing to receive and file the local agency report on vacancies recruitment and retention efforts pursuant to government code section 3502.3 Thank You staff report please

All right. Good evening, Mr. Mayor, members of the council, members of the public. Tonight we will open and conduct the required public hearing and receive and file the city's annual report on job vacancies, recruitment efforts, hiring practices, and retention efforts. Government code section 3502.3 requires public agencies to report annually on vacancy rates, recruitment efforts, hiring practices, and retention efforts.

before adopting the adoption of the final budget. The purpose of the report is to promote transparency regarding public sector staffing levels and to provide an opportunity for employee organizations and the public to participate in the discussion. In 2025, the city had 3.5 vacancies The City continues to use its standard hiring process, reviewing vacant positions, posting job screening applications, conducting interviews and completing reference and background checks consistent with city policy.

No policy procedure recruitment practice changes were made that would negatively affect the City's ability to reduce or address the vacancies. The City provided notice to the Teamsters Local 986 Union regarding public hearing tonight The public hearing will satisfy the city's annual reporting requirement under the government code. And with that, I'll bring it back to council to open and conduct a public hearing.

Thank you. Any questions of staff? Then I will open it to public hearing for this item. Any comments? I don't have any slips on this I'm just curious, retention rate is over 100%.

Yeah, that's because we at the beginning of 2025 we had 23 employees and at the end of 2025 we had 26 employees. So we had... The way the formula is calculated it puts it over because we had more employees at the end of the year than we did the beginning of the year

It's just interesting. So he talks about the positions failed overall, it's not whether you know people left the position and somebody new got hired? Okay yeah

I had the same question Claudia because Any time you have over 100% it seems normally you read it as if you've more than doubled. So I had questions about, but as I understand it we're reporting the data assets being asked for in this AB 2561 format correct? Correct Yes. It's funky, right?

Yeah. And we actually had in 2024 the I do believe that percentages were even higher because we hired more employees and it's for a calendar year not fiscal year. Okay

so the great so over whatever is over 100 is represents our growth yeah so it's 16% growth really is how to read it

good All right, then we will close the public hearing. There's no other discussion and

I'll make a motion to receive and file the local agency reporting vacancies recruitment and retention efforts

I'll second it.

It's been properly moved and seconded to approve and adopt item 7A. Roll call please.

motion passes 5-0.

Thank you would you read the next item please in 7B

Public hearing to consider Resolution 26-1322, amending the appropriation limit for fiscal year 26-27 pursuant to Article 13B of the California Constitution.

Thank you. Staff report please.

All right. This is another public hearing that you will open and consider adopting Resolution 20, the resolution which amends the city's appropriation limit also known as the GAN limit for fiscal years 26-27 as required by Article 13B of the California Constitution. Each year, the city is required to calculate and adopt its appropriation limit based on the changes in population and the cost of living.

For fiscal year 26-27, the California Department of Finance reported a 4.95 increase in per capita personal income and a 1.04% decrease in Solvang's population resulting in a growth factor of 1.038. The city's appropriation limit is $27,380,109 for 26-27. Based on the anticipated fiscal year 26-27 general fund revenues of approximately 13.9 million, the city remains well below the calculated appropriations limit.

The supporting documentation was made available to the public 15 days prior to the meeting. And with that I'll return it back to you.

Thank you, I would request for simplicity could you explain to us everyone here why is there an appropriation limit and what's the purpose for it? What's the why?

The why behind it keeps government agencies in check on their spending, so legally we can't go over our appropriation limit. So the state obviously because of I think it was the city of Orange or Bell or one of those cities that went financially under they kept spending more money than what they brought in And when you do that, you eventually deplete your reserves and then you have no money.

So the state has mandated this regulation to hopefully prevent that.

Thank you. Any questions of staff?

And it is only for general fund. It's not for... You'll see in the budget presentation tonight that all funds revenue is only for general fund.

Just general fund? Yeah. Very well. We will now open it to public hearing, comments and we'll start with in person. I have a slip from Denise Alameen

Hi, I'm Denise Ellamy and I am just a regular resident with like I said less than common sense. So this is for the public and I'm the public and I don't understand it. The appropriation limit general fund I'm guessing that that is how much we have to keep in the bank in order to not deplete all of our taxes or our money. And yes, it was the City of Bell that went zero but we change like we have on this agenda today. We change our budget. It looks like every city council meeting we add something to the budget or we change it so When we change the budget, when you add a million dollars for a contractor, do we change the appropriation limit if it comes out of the general fund?

When we add, because I'm very confused. The contractors come back a lot asking for additional funds to complete a job and they Where does that money come out of? Measure U is not that big. So all the money that comes out of the general fund, that wasn't on the proposed budget and now is in the budget, the general fund, are we going to be moving the appropriation limit general fund? This is the first time I've ever seen this on the budget or the staff report so I just need to know Do we change it if we get close or do we not?

So, maybe Wendy can explain that. That's where I'm lost.

Thank you. Do we have any other comments this evening either online or here in the room? Okay, I will now close it to public comment and bring it back to the dais for conversations or discussions. Questions? Mr. Murphy, do you have a question or do you want to add?

Pass it off to Wendy to answer that question.

Okay we do not change the appropriation limit. We are required to do it based on the per capita personal income and the population change and then the growth factor. And so we have to adopt this annually We don't change it and if our general fund expenses went up to $27 million, we would have no money in the general fund.

I was going to add, I believe this goes back to Prop 13. It was called the Jarvis-Gann Initiative and this is called the Gann Limit so I assume it's related to that. I wasn't in public sector at that time. As a matter of fact, I was still in high school in 1978. Some of us weren't born yet. All right, I get that. So anyway the point is that it's related to that. It's a way for through that process to hold local government accountable there was a limit set at that time and gets inflated every year by whatever the factors are they do that math And that gives us the maximum amount we can spend in any given year. As Wendy pointed out, this is done every year. There's a public hearing every year around this time, typically the second meeting in June where we announce what the numbers are and what it goes up to.