Memorandum
Date: September 23, 2025
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: 11:00 A.M. - PUBLIC HEARING - Consideration of the Final Recommended Budget for Fiscal Year 2025-2026 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) 2025-26 Final Recommended Budget. This memorandum is intended to serve as an update to our June 24, 2025, memorandum introducing the FY 2025-26 Recommended Budget. For your reference, that memorandum is also attached to your agenda packet as much of it is still applicable.
Fund Balance Available (carry-over): We received the Fund Balance Available (FBA) in early September, and we added $6,493,892 to the budget. The FBA allowed us to be able to fund multiple extraordinary requests including Jail Roof Phase 1, estimated at $2,800,000. The Final Recommended Budget includes $3,878,096 in extraordinary requests. During the Recommended Budget Hearing, $465,796 was removed from the South Main Water Line Project for various roof projects. Those funds were added bringing it back up to $2,000,000. Additionally, in Budget Unit 1778, $1,150,000 was added for the Courthouse HVAC upgrade. We also propose an increase in the general fund BU 7999 Contingencies of an additional $1,000,000.
American Rescue Plan Act (ARPA) also known as State and Local Fiscal Recovery Funds (SLFRF): The County received $12,506,226. Of that, $10,632,822 has been spent or transferred to non-General Fund departments. The remaining $1,871,484 has been budgeted to be spent this fiscal year.
Remaining Projects with ARPA funds:
|
Budget Unit |
Project |
Approved |
Remaining |
|
1778 |
Kelseyville Senior Center |
460,702 |
104,792 |
|
|
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|
|
|
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Economic Development Strategic Plan |
|
|
|
|
|
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Special Districts Tertiary Treatment Plant |
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Special Districts Studies |
|
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Special Districts Dump Site for Haulers |
|
|
Property tax: The increase in property taxes received between FY 2023-24 and FY 2024-25 was $1,193,288, which equated to a 3.82% increase.
Sales Tax: Bradley-Burns (1%) Sales tax revenues received in FY 2024-25 equaled $4,747,318 which was an increase of $482,742 over FY 2023-24. Prop 172 sales tax revenues for FY 2024-25 equaled $4,048,171 which was an increase of $5,729 compared to FY 2023-24.
Transient Occupancy Tax: Transient Occupancy Tax (TOT) revenues totaled $1,018,972 in FY 2024-25 which was an increase of $86,397 compared to FY 2023-24.
Cannabis Tax: Cannabis tax received a revenue of $3,421,118 in FY 2024-25 which was an increase of $838,803 from FY 2023-24
Reserves: At this time, staff does not recommend increasing or decreasing the general fund reserves. As your board is aware, the Technology Reserve loaned Behavioral Health $3,000,000, $1,000,000, of which was paid back last fiscal year with the remaining $2,000,000 budgeted to be paid back this year.
Capital Assets: The FY 2025-26 Final Recommended Budget includes funding for a number of capital projects, many of which are supported by grants or other special funding, including, but not limited to:
|
New Projects |
Amount |
|
Jail Medical Center Improvement -Sheriff |
$1,000,000 |
|
|
|
|
Ozone Upgrades-Special Districts |
|
1 Ton Truck Replacement-Special Districts |
|
400Kw Generator-Special Districts |
|
|
Existing Projects |
Previous |
Adjustment |
Current Amount |
|
Kelseyville Sidewalks-Public Works |
$661,000 |
$339,000 |
$1,000,000 |
South Main Street Rehab-Public Works |
|
|
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Soda Bay Road Rehab-Public Works |
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Cobb Area Roads-Public Works |
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LACOSAN SE Infiltration & Inflow-Special Districts |
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Utility Relocation and Adjustments-Special Districts |
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Requested Positions additions since recommended budget:
1 Payroll Supervisor - BU 1121 (New)
1 Staff Services Manager - BU 2201 (New)
4 Deputy Sheriff I/II-Corrections (Limited Term) - BU 2301 (New-Grant Funded)
1 Integrated Solid Waste Manager I/II - BU 4121 (Modified to be a flex position)
1 Weighmaster - BU 4121 (Removed “Remove upon next vacancy”)
1 Supervising Staff Services Analyst - BU 5011 (Increased by 1)
5 Staff Services Analyst I/II - BU 5011 (Increased by 5)
1 Recreation and Open Space Planner - BU 7011 (New, shares FTE with Recreation Programs and Events Coordinator)
1 Water Resources Engineer I/II/Senior - BU 8107 (Changed from unfunded to funded)
1 Staff Services Analyst I/II - BU 8107 (New)
(1) Accountant Technician, Senior - BU 8107 (Removing)
1 Administrative Assistant/Senior - BU 8107 (Changing to flex position)
1 Utility Electrical and Mechanical Superintendent - BU 8695 (New)
(1) Water Meter Reader-Connection Technician I/II - BU 8695 (Removing)
1 Utility Worker, Senior - BU 8695 (Increasing by 1 FTE)
The cost of new General Fund positions included in the Final Recommended budget is absorbed within the department’s net county cost.
Fiscal Impact:
Your approval of this Recommended Final Budget will enable the County to meet its statutory obligations and continue operations for FY 2025-26.
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 2025-26 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 2025-26 to Conform to the Adopted Budget.