Memorandum
Date: August 19, 2025
To: The Honorable Lake County Board of Supervisors
From: Susan Parker, County Administrative Officer
Casey Moreno, Deputy County Administrative Officer
Subject: 9:04 A.M. - (a) Consideration of A Summary of Adjustments Made to Your Board’s Recommended Budget During Hearings of June 24, 2025, and June 25, 2025; (b) Follow-Up on Concepts Raised by Supervisors During Fiscal Year 2025-2026 Recommended Budget Hearings Where Consensus was Reached Requesting Discussion Prior to the September 23, 2025, Final Recommended Budget Hearing
Executive Summary:
First, many thanks to your Board for your engagement in this year’s Recommended Budget Hearings, held June 24, 2025, and June 25, 2025. As you will recall, changes were made to numerous elements of the budget during those Hearings, and members of your Board had expressed interest in Administration collecting and clarifying those adjustments, to provide for greater public understanding. A summary of changes follows, with Annotations, where available:
Summary of Changes
BU 1122 Treasurer Tax Collector
• Move $238,450 from Revenue account 10-50 to 31-95
BU 1671 Buildings & Grounds
• Decrease Building and Infrastructure Reserve 153 by $282,000;
• Increase Appropriation account 18-00 by $282,000
As a result of aligning Net County Cost to Actual Expenditures, Public Services saw a decreased General Fund contribution, and proposed pulling from the Building and Infrastructure Reserve, as they were unable to identify feasible commensurate to the decrease.
BU 1778 Capital Projects
New Capital Asset
• Create Capital Asset 63-13 for Middletown Senior Center Solar in the amount of $260,000
Increases
• Increase Capital Asset 63-13 District Attorney Roof in the amount of $120,000
• Increase Capital Asset 63-13 Vista Point Roof in the amount of $90,000
• Increase Capital Asset 63-13 Law Library Roof in the amount of $60,000
• Increase Capital Asset 63-13 Veterans Services Roof in the amount of $60,000
Decreases
• Decrease Capital Asset 63-04 Water Line for South Main Street & Soda Bay Road by $465,796
• Decrease Capital Asset 63-13 Sheriff Admin Roof in the amount of $40,000
• Decrease Capital Asset 63-13 Agricultural Center Roof in the amount of $9,204
• Decrease Capital Asset 63-13 Sheriff Dispatch Roof in the amount of $75,000
Adjustments reflect the addition of the Middletown Senior Center Solar project and changes to anticipated costs for roofing projects.
BU 2301 Sheriff-Jail Facilities
• Increase revenue account 54-02 by $101,114
• Increase capital asset account 61-60 by $101,114
These represent funds carried over into FY 2025-26 from FY 2024-25 for the refencing project that remains in progress at this time.
BU 7011 Parks
• Create Capital Asset for Middletown Pool Enclosure Planning and Design by $100,000
• Decrease General Parks Reserve 152 by $400,000
• Increase capital asset 63-12 Hammond Park by $300,000
One-time funding was drawn from the General Parks Reserve to complete the Hammond Park Project and begin the planning and design for the Middletown Pool Enclosure.
Comprehensively, these changes represent a net increase of $783,114 from the initial balanced Budget Draft presented by Administration.
Possible Further Discussion
In addition to making Budgetary Adjustments, your Board, by Consensus, asked for further discussion regarding multiple concepts raised by Supervisors during June’s Recommended Budget Hearings. With part (b) of today’s item, staff invites your discussion of the following Items:
Cannabis Tax Usage and Expenditure Policies and Procedures
As your Board is aware, Chapter 7, Item 12 of the County of Lake, CA, Policies and Procedures Manual guides “Cannabis Tax Usage and Expenditure.” During today’s meeting, staff will provide current balances available in the following categories: Planning/Code Enforcement/Water Resources/Environmental Health (30%); Law Enforcement (30%); Economic Development/ Housing/Risk Reduction (30%); and Youth Programs (10%). Members of your Board had expressed interest in clarification of what overall percentage of total Cannabis Cultivation and Business Taxes are allocated using this 30/30/30/10 model, as opposed to allocations specified in policy, e.g., $500,000 for CannGrants (which no longer exist).
Pursuant to Chapter 7, Item 12, page 7.12.3 of the County of Lake, CA, Policies and Procedures Manual, your Board also expressed interest in reviewing Cannabis Tax Allocations, and considering whether the division of these funds may benefit from restructuring.
Community Oriented Policing and Targeted Restoration (COPTR) Program
Staff will review funding spent and available, and invite your Board’s discussion regarding the concept of adding 1 Animal Control Officer, raised during your June Budget Hearings. Staff recommends waiting until the new Animal Control Director is hired to add additional allocations.
Pension Stabilization Fund
In December of 2021, the previous balance of $3,000,000 was transferred out of the reserve and into the market for investment purposes. The purpose of these funds is to cover the county share of PERS in the event that revenues do not come in as expected and we are unable to pay our monthly amount. As this is not likely to happen, the funds are in the market where they can be invested. Staff recommends the funds stay where they are until the time they are needed.
BU 1778 Capital Asset:
Since Final Recommended Budget in FY 2014-15, “Water Line for South Main Street and Soda Bay Road has appeared on the Capital Asset list. Funding was allocated from the General Fund, only; the funds are unrestricted. The balance has fluctuated throughout the years as additional funding has become available. It has also decreased as existing projects which need immediate funding are nearing completion. Staff recommends these funds are moved to other General Fund Capital Assets so they can be utilized for projects which would otherwise not have sufficient funding.
BU 1892 Marketing & Economic Development: Funding Special Interest Groups
In previous years, your board has elected to provide funding to 1 Team 1 Dream. Last year it was the consensus that it be added into the budget going forward. During the June budget hearings, your board decided not to contribute these funds and to have a larger discussion regarding contributions which would include the Lake County Chamber of Commerce. Staff recommends further review and/or making any adjustments during Final Recommended Budget Hearings.
Additional Allocations Proposed During Recommended Budget Hearings, but Unfunded
A Supervisor raised the concept of raising BU 2113, Victim Witness’, budget by $50,000 in consideration of anticipated decreases in federal Victims of Crime Act (VOCA) funding; in the time since, the State Budget included $100M in in one-time General Fund support for the Victims of Crime Act. The concept of providing $50,000 for Veterans experiencing homelessness was likewise raised. No Allocations were approved for either of these purposes during Recommended Budget Hearings. If it is the direction of your board, staff recommends discussing Veteran’s Homelessness next steps with Social Services.
Veterinarian Position
During their recent in-house Compensation Study, Human Resources attempted to benchmark the position of County Veterinarian, and found there were an insufficient number of positions in comparable California Counties to well ground an analysis. This is reflective of a regional shortage of qualified veterinarians; even the local private clinics are struggling to recruit and retain licensed Veterinarians. Staff are looking into the possibility of contracting with a Veterinarian to be able to provide some level of services. Your Board had conceptually discussed (perhaps as a medium- or long-term strategy) removing the Veterinary Technician (Vet Tech) position to increase the rate of pay accessible for the Veterinarian role; at present, that role is filled, and no Board direction has been given to eliminate it. Staff recommends waiting until a new director is hired.
Department Transfers
Attached to this Memorandum is the spreadsheet the County Administrative Office uses to ensure both sides of transfers (i.e., transfers in and transfers out) are balanced. This tracking sheet is just for balancing purposes; Departments are not mandated to follow through on these transfers, should they prove unnecessary. This is informational only and does not require action.
Lake Family Resource Center Annual Report
This report will be presented at a future date.
Climate Resiliency Will Be Discussed at a Future Date
Departments have been asked to estimate their costs surrounding provision of opportunities to escape winter weather and beat the heat. During your Board’s Recommended Budget Hearings, County Librarian, Christopher Veach, estimated 30 additional hours of staff time may be required, with total costs for additional Library hours potentially reaching $11,300. Further Departments with public-facing facilities, may be able to provide similar opportunities. Additionally, integration of climate resiliency principles into the work of County Departments is desirable to promote efficient infrastructure investments, for example; further discussion of these climate-focused concepts will be undertaken at a later date.
We hope the updates provided in this meeting assist your Board in preparing for your September Final Budget Hearing. As always, we encourage you to meet with staff to discuss any uncertainties and will get the Final Recommended Budget to you as soon as we are able to.
If not budgeted, fill in the blanks below only:
Estimated Cost: ________ Amount Budgeted: ________ Additional Requested: ________ Future Annual Cost: ________
Purchasing Considerations (check all that apply): ☐ Not applicable
☐ Fully Article X. <https://library.municode.com/ca/lake_county/codes/code_of_ordinances?nodeId=COOR_CH2AD_ARTXPU_S2-38EXCOBI>- and/or Consultant Selection Policy <http://lcnet.co.lake.ca.us/Assets/Intranet/Policy/Policies+$!26+Procedures+Manual/Ch4_2021v2.pdf>-Compliant (describe process undertaken in “Executive Summary”)
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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: (a) Informational only, though your Board may consider Direction to staff; (b) Direction to staff, as appropriate.