Memorandum
Date: September 29, 2026
To: The Honorable Lake County Board of Supervisors
From: Susan Parker, County Administrative Officer
Stephen L. Carter, Jr., Assistant County Administrative Officer
Casey Moreno, Deputy County Administrative Officer
Subject: 9:00 A.M. - PUBLIC HEARING - Consideration of the Final Recommended Budget for Fiscal Year 2026-2027 for the County of Lake and Special Districts Governed by the Board of Supervisors
Executive Summary:
We are pleased to present, for your Board’s consideration, the Fiscal Year (FY) 2026-27 Final Recommended Budget. This memorandum is intended to serve as an update to our June 15, 2026, memorandum introducing the FY 2026-27 Recommended Budget. The June 2026 memorandum is likewise attached to your agenda packet, for reference, as much of its content remains applicable.
Fund Balance Available (carry-over): Administrative received initial Fund Balance Available (FBA) data in early September, but data regarding uncompleted contracts (e.g., contracts obligating future expenditure of County funds) was not included in that first draft, and became available only after the primary budget documents were printed; as a result, adjustments are necessary to bring the budget back into balance. Specific to General Fund, FBA was less than budgeted. Therefore, General Fund budgets need to be reduced by 9% to balance with anticipated revenues and carry-over (i.e., FBA). After careful review, and in consideration of Lake County’s lengthy history of avoiding sudden cuts that could result in staff furloughs or loss of positions, General Fund budgets were reduced by 5% with the remaining 4% drawn from Contingencies (Budget Unit 7999).
American Rescue Plan Act (ARPA) also known as State and Local Fiscal Recovery Funds (SLFRF): The County received $12,506,226 in 2021. Of that total, $11,707,409 has been spent or transferred to non-General Fund departments. The remaining $798,817 is budgeted and will be compliantly expended not later than December 31, 2026.
Remaining Projects with ARPA funds:
|
Budget Unit |
Project |
Approved |
Remaining |
|
1778 |
Kelseyville Senior Center |
460,702 |
104,513 |
|
|
|
|
|
|
|
|
|
Economic Development Strategic Plan |
|
|
|
2702 |
General Plan Update |
1,600,000 |
113,558 |
|
7011 |
Middletown Park |
100,000 |
100,000 |
|
8593 |
Special Districts Tertiary Treatment Plant |
300,000 |
10,665 |
|
8695 |
Special Districts Studies |
200,000 |
193,570 |
|
Special Districts Dump Site for Haulers |
|
|
Property tax: Property Tax Revenues increased by $1,220,638 (3.76%) in FY 2025-26. FY 2024-25 Property Tax Revues Totaled $32,453,558. The 2025-26 figure was $33,674,196.
Sales Tax: Bradley-Burns (1%) Sales Tax revenues received in FY 2025-26 equaled $4,112,236 (a decrease of $635,082 from FY 2024-25). Prop 172 Sales Tax revenues for FY 2025-26 equaled $4,172,868 (an increase of $124,868 compared to FY 2024-25).
Transient Occupancy Tax: Transient Occupancy Tax (TOT) revenues totaled $1,205,092 in FY 2025-26, a decrease of $17,899 compared to FY 2024-25.
Cannabis Tax: Cannabis Tax revenues totaled $3,924,693 in FY 2025-26, an increase of $421,149 from FY 2024-25.
Reserves: At this time, staff does not recommend increasing or decreasing General Fund reserves. As your board is aware, the Technology Reserve loaned Behavioral Health $3,000,000 in FY 2023-24. $1,000,000 was repaid in FY 2024-25, with the remaining $2,000,000 in payments anticipated over the next 7 years.
Capital Assets: The FY 2026-27 Final Recommended Budget includes funding for a number of Capital Projects, many of which are supported by grants or other special funding. These include, but not limited to:
|
New Projects |
Amount |
|
South Main St Rehab Project- Roads |
$6,750,000 |
Soda Bay Rehab Project- Roads |
|
Kelseyville Sidewalk Project-Roads |
|
|
Existing Projects |
Previous |
Adjustment |
Current Amount |
|
Remodel-District Attorney |
$100,000 |
-$100,000 |
$0 |
Remodel New Facility-Probation |
|
|
|
Bridge Prevention Maint. Prog., Rehab-Roads |
|
|
|
Bridge Prevention Maint. Prog., Scour-Roads |
|
|
|
Requested position changes since recommended budget:
(1) Public Works Director - BU 1903 (Changed to Flex)
1 Public Works Director I/II - BU 1903 (Changed to Flex)
(1) Deputy Public Works Director-Maintenance - BU 1903 (Changed to Facilities)
1 Deputy Public Works Director-Facilities - BU 1903 (Changed from Maintenance)
(1) Deputy Public Works Director-Operations - BU 1903 (Moved to BU 4121)
(2) Deputy Sheriff I/II - BU 2201 (Directly Referenced as Cannabis-Focused)
2 Deputy Sheriff I/II (Cannabis)- BU 2201 (Directly Referenced as Cannabis-Focused)
(1) Deputy Director of Public Health - BU 4011 (a decrease of 1 FTE)
1 Health Services Program Manager - BU 4011 (an increase of 1 FTE)
(1) Peer Support Specialist LatinX - BU 4014 (Reclass to Peer Support Specialist, Senior)
(1) Peer Support Specialist Native American - BU 4014 (Reclass to Peer Support Specialist, Senior)
2 Peer Support Specialist, Senior - BU 4014 (Changed from LatinX and Native American)
(3) Substance Abuse Programs Coordinator - BU 4015
3 Substance Use Disorder Programs Coordinator - BU 4015
(13) Substance Abuse Counselor I/II/III/Sr. - BU 4015
13 Substance Use Disorder Counselor I/II/III/Sr. - BU 4015
1 Deputy Public Works Director-Operations - BU 4121 (Moved from BU 1903)
These proposed changes result in no net increase or decrease in County positions.
Fiscal Impact:
Your approval of this Recommended Final Budget will enable the County to meet its statutory obligations and continue operations for FY 2026-27.
If not budgeted, fill in the blanks below only:
Estimated Cost: ________ Amount Budgeted: ________ Additional Requested: ________ Future Annual Cost: ________
Purchasing Considerations (check all that apply): ☒ Not applicable
☐ Fully Article X. <https://library.municode.com/ca/lake_county/codes/code_of_ordinances?nodeId=COOR_CH2AD_ARTXPU_S2-38EXCOBI>- and/or Consultant Selection Policy <http://lcnet.co.lake.ca.us/Assets/Intranet/Policy/Policies+$!26+Procedures+Manual/Ch4_2021v2.pdf>-Compliant (describe process undertaken in “Executive Summary”)
☐ Section 2-38 <https://library.municode.com/ca/lake_county/codes/code_of_ordinances?nodeId=COOR_CH2AD_ARTXPU_S2-38EXCOBI> Exemption from Competitive Bidding (rationale in “Executive Summary,” attach documentation, as needed)
☐ For Technology Purchases: Vetted and Supported by the Technology Governance Committee <http://lcnet.co.lake.ca.us/Assets/Intranet/Intranet+Forms/Information+Technology/AdvPlan.pdf> (“Yes,” if checked)
☐ Other (Please describe in Executive Summary)
Consistency with Vision 2028 <http://www.lakecountyca.gov/Government/Directory/Administration/Visioning/Vision2028.htm> (check all that apply): ☐ Not applicable
☒ Well-being of Residents ☒ Public Safety ☒ Disaster Prevention, Preparedness, Recovery
☒ Economic Development ☒ Infrastructure ☒ County Workforce
☒ Community Collaboration ☒ Business Process Efficiency ☒ Clear Lake
Recommended Action:
1) Adopt the Resolution Adopting the Final Recommended Budget for Fiscal Year 2026-27 as detailed in the attached, incorporating any changes desired by your Board following budget hearings.
2) Adopt the Resolution Establishing New Classifications, the Effective Date Thereof, and Amending the Position Allocation Chart for Fiscal Year 2026-27 to Conform to the Adopted Budget.