Memorandum
Date: December 9, 2025
To: The Honorable Eddie Crandell, Chair, Lake County Board of Supervisors
From: Mireya G. Turner, Community Development Department Director
Shannon Walker-Smith, Deputy Community Development Administrator
Subject: Consideration of Community Development Department Repayment Plan and Proposed Oversight Strategies
Executive Summary:
The most significant challenge Building and Safety has faced this fiscal year is a substantial decline in revenue. Although the original 25/26 budget projected moderate increases, the division has generated only 28% of expected revenue to date. This decline is particularly impactful because staffing represents the majority of the budget, which this year makes up 64%, greatly limiting the division’s ability to reduce expenditure without affecting service delivery. In addition to salaries the department has obligated remaining funds to insurance, IT services, Inter-Division contributions, and Central Garage milage, contracted services, software licensing, training, and memberships.
In response to the shortfall, we have suspended all non-essential expenditures and will continue this approach through the mid-year budget revisions for all three divisions. Hiring has been paused except for essential or grant-funded positions. We have also established regular communication with Administration to ensure fiscal transparency and to obtain guidance on any challenging budget issues.
To strengthen oversight, all purchasing documents are now routed through Administration for review and approval. Additionally, we are coordinating with the appropriate County departments to ensure our fee administration and repayment of the short-term loan complies fully with state law and County policy.
Looking ahead to June, next fiscal year, and beyond, all non-essential purchases will remain suspended until the loan has been repaid. Essential costs-such as copier, vehicle mileage, and IT support charges-will continue to maintain functions of the department Any revenue accrued above new projections will be dedicated to loan repayment. Moving forward, we will continue to prioritize disciplined spending while maintaining service quality and work diligently at rebuilding reserves.
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: Provide Direction to Staff.