Memorandum
Date: November 17, 2026
To: The Honorable Brad Rasmussen, Chair, Lake County Board of Supervisors
From: Dr. Pawan Upadhyay, Water Resources Director
Subject: (Sitting as the Board of Directors of the Lake County Watershed Protection District) Consideration of Resolution Authorizing a Temporary Inter-Fund Transfer of up to $1,000,000 for Cash-Flow Requirements of Previously Approved Grant-Funded Projects
Executive Summary:
The Lake County Water Resources Department and Lake County Watershed Protection District currently manage multiple ongoing grant-funded projects approved by the Board of Supervisors. These projects support critical water resources management, flood protection, watershed restoration, water quality improvement, and environmental enhancement initiatives throughout Lake County.
Most of these grants operate on a reimbursement basis, requiring the County to incur and pay project expenses before receiving reimbursement from the respective funding agencies. Additionally, many grant agreements include a retention provision, typically withholding approximately 10% of eligible expenditures until project completion and final approval.
As a result, the District faces temporary cash-flow requirements despite having secured grant funding for these projects. The District's FY 2026-27 grant cash-flow schedule identifies an estimated aggregate need of $998,621.08 across nine approved grants, as detailed in Exhibit B to the accompanying resolution. Staff requests authorization for a temporary interfund transfer not exceeding $1,000,000 from an available County source fund, subject to any necessary corresponding County action, to District Fund 200, Budget Unit 8109.
The temporary transfer would be used solely to meet timing-related cash-flow needs for eligible expenditures under previously approved grants. It would not authorize new projects, expand existing project scopes, or increase adopted appropriations. The District shall restore the full amount transferred to the source fund no later than the close of the current fiscal year, using grant reimbursements and other available authorized project funding.
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Recommended Action: Adopt Resolution Authorizing a Temporary Inter-Fund Transfer of up to $1,000,000 for Cash-Flow Requirements of Previously Approved Grant-Funded Projects.