Memorandum
Date: November 18, 2025
To: The Honorable Lake County Board of Supervisors
From: Mireya G. Turner, Community Development Department Director
Shannon Walker-Smith, Deputy Community Development Administrator
Subject: Consideration of Resolution Authorizing a Short-Term Loan in the Amount of $390,000 to the Community Development Department Building Division
Executive Summary:
Lake County Community Development Department Building Division is currently operating under a budget deficit driven by a significant decline in permitting revenue resulting from broader market conditions. Slower activity in both the residential and commercial development sectors has directly reduced fee-based income while MOU-mandated salary increases have elevated baseline personnel costs. To responsibly manage this shortfall, the Division has enacted an immediate freeze on all discretionary spending, restricting expenditures strictly to payroll and essential operations. Despite these measures, the Division requires temporary loan support to meet payroll obligations and maintain the staffing levels necessary to fulfill statutory responsibilities, ensure public safety, and avoid service disruptions that would further impact revenue.
As of Friday November 14th, we are through 42% of the fiscal year and year to date the Building Division has exhausted 78% ($283,662) of the expected ($364,925) year-to-date salaries, putting the division below expectations of year-to-date salaries. The big impact on the budget has been the large decline in permitting and service fees generated year-to-date. Projections estimated the Building Division would generate $605,125 in permit fees and $263,155 in service fees ($868,280 total) by this time of the year. The Building Division has fallen short of that mark by $311,755 and only generated $372,038 in permit fees and $184,487 in service fees. To help balance the budget the division will restrict spending to only salary and necessary expenses to maintain full public services. This strict spending schedule will save approximately $14,600 between now and the end of the fiscal year to help balance the Division budget.
Looking ahead, the Division anticipates a measurable rebound in revenue as development activity is projected to increase in the new year. Several planned projects are expected to move forward as financing conditions stabilize, and renewed interest from both residential builders and commercial investors indicates a more active permitting environment. Additionally, the Division is evaluating operational efficiencies to better align cost recovery with service demand. With these anticipated improvements, the Division expects to generate sufficient revenue to fully repay the requested loan this fiscal year while restoring long-term budget stability.
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☐ Well-being of Residents ☐ Public Safety ☐ Disaster Prevention, Preparedness, Recovery
☐ Economic Development ☐ Infrastructure ☒ County Workforce
☐ Community Collaboration ☐ Business Process Efficiency ☐ Clear Lake
Recommended Action: Offer the resolution.