Memorandum
Date: November 4, 2025
To: The Honorable Lake County Board of Supervisors
From: Susan Parker, County Administrative Officer
Lloyd C. Guintivano, County Counsel
Subject: Consideration of Funding Request for $50,000 Under BU 1892 Pursuant to Board Direction on September 23, 2025
Executive Summary:
On September 23, 2025, your Board was informed of a funding request in the amount of $50,000 for One Team One Dream. Your Board then pulled this budget item for discussion regarding the County of Lake’s budget for Fiscal Year 2025/2026 pending further review from staff on whether approval of this funding is a gift of public funds in violation of the California Constitution.
Cal. Const., art. XVI, § 6 states that the “Legislature shall have no power to give or to lend, or to authorize the giving or lending, of the credit of the State, or of any county, city and county, city, township or other political corporation or subdivision of the State now existing, or that may be hereafter established, in aid of or to any person, association, or corporation, whether municipal or otherwise, or to pledge the credit thereof, in any manner whatever, for the payment of the liabilities of any individual, association, municipal or other corporation whatever; nor shall it have power to make any gift or authorize the making of any gift, of any public money or thing of value to any individual, municipal or other corporation whatever.”
However, expenditures or disbursements made for a “public purpose” are not considered a gift of public funds. County of Alameda v. Janssen (1940) 16 Cal 2d 276, 281; Redevelopment Agency of San Pablo v. Shepard (1977, Cal App 1st Dist) 75 Cal. App 3d 453; Schettler v. County of Santa Clara (1977, Cal App 1st Dist) 74 Cal App 3d 990. The public purpose exception is liberally construed, and a “[d]etermination of public purpose is primarily a matter for the Legislature and will not be disturbed as long as it has a reasonable basis.” County of Alameda v. Janssen (1940) 16 Cal 2d 276, 281. An expenditure valid under public purpose exception even if there is an incidental private benefit Redevelopment Agency of San Pablo v. Shepard (1977, Cal App 1st Dist) 75 Cal. App 3d 453 (citing County of Alameda v. Janssen (1940) 16 Cal 2d 276)).
Examples of what constitutes as a “public purpose” include expenditures for free school text books, transportation; tuition and living expenses for education of veterans, erection of memorial hall for war veterans]; street improvements; payments for destruction of diseased cattle; flood control; relief of indigent sick and poor; slum clearance; payment of delinquent assessments on overburdened property; free treatment in county hospital only for those unable to pay]. See 9 Cal. Law Rev. 431; payments to a nonprofit county fair county fair association whose purposes are those of a county fair.
In light of the foregoing, your Board may consider approving the funding request for One Team One Dream so long as the terms of the expenditure / disbursement expressly outlines the public purpose served by the funding recipient’s obligations under the memorandum of understanding, both in the recitals and said recipient’s scope of duties.
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: Direction to staff.