Board Of Supervisors — Tuesday, September 29, 2026

Memorandum Date: September 29, 2026 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: 9:00 A.M. - PUBLIC HEARING - Consideration of the Final Recommended Budget for Fiscal Year 2026-2027 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) 2026-27 Final Recommended Budget. This memorandum is intended to serve as an update to our June 15, 2026, memorandum introducing the FY 2026-27 Recommended Budget. The June 2026 memorandum is likewise attached to your agenda packet, for reference, as much of its content remains applicable. Fund Balance Available (carry-over): Administrative received initial Fund Balance Available (FBA) data in early September, but data regarding uncompleted contracts (e.g., contracts obligating future expenditure of County funds) was not included in that first draft, and became available only after the primary budget documents were printed; as a result, adjustments are necessary to bring the budget back into balance. Specific to General Fund, FBA was less than budgeted. Therefore, General Fund budgets need to be reduced by 9% to balance with anticipated revenues and carry-over (i.e., FBA). After careful review, and in consideration of Lake County’s lengthy history of avoiding sudden cuts that could result in staff furloughs or loss of positions, General Fund budgets were reduced by 5% with the remaining 4% drawn from Contingencies (Budget Unit 7999). American Rescue Plan Act (ARPA) also known as State and Local Fiscal Recovery Funds (SLFRF): The County received $12,506,226 in 2021. Of that total, $11,707,409 has been spent or transferred to non-General Fund departments. The remaining $798,817 is budgeted and will be compliantly expended not later than December 31, 2026. Remaining Projects with ARPA funds: Budget Unit Project Approved Remaining 1778 Kelseyville Senior Center 460,702 104,513 1892 Broadband Action Plan 300,000 55,000 1892 Housing Strategic Plan 265,000 11,510 1892 Economic Development Strategic Plan 266,000 153,876 2702 General Plan Update 1,600,000 113,558 7011 Middletown Park 100,000 100,000 8593 Special Districts Tertiary Treatment Plant 300,000 10,665 8695 Special Districts Studies 200,000 193,570 8695 Special Districts Dump Site for Haulers 400,000 50,958 Property tax: Property Tax Revenues increased by $1,220,638 (3.76%) in FY 2025-26. FY 2024-25 Property Tax Revues Totaled $32,453,558. The 2025-26 figure was $33,674,196. Sales Tax: Bradley-Burns (1%) Sales Tax revenues received in FY 2025-26 equaled $4,112,236 (a decrease of $635,082 from FY 2024-25). Prop 172 Sales Tax revenues for FY 2025-26 equaled $4,172,868 (an increase of $124,868 compared to FY 2024-25). Transient Occupancy Tax: Transient Occupancy Tax (TOT) revenues totaled $1,205,092 in FY 2025-26, a decrease of $17,899 compared to FY 2024-25. Cannabis Tax: Cannabis Tax revenues totaled $3,924,693 in FY 2025-26, an increase of $421,149 from FY 2024-25. Reserves: At this time, staff does not recommend increasing or decreasing General Fund reserves. As your board is aware, the Technology Reserve loaned Behavioral Health $3,000,000 in FY 2023-24. $1,000,000 was repaid in FY 2024-25, with the remaining $2,000,000 in payments anticipated over the next 7 years. Capital Assets: The FY 2026-27 Final Recommended Budget includes funding for a number of Capital Projects, many of which are supported by grants or other special funding. These include, but not limited to: New Projects Amount South Main St Rehab Project- Roads $6,750,000 Soda Bay Rehab Project- Roads $2,250,000 Kelseyville Sidewalk Project-Roads $41,000 Existing Projects Previous Adjustment Current Amount Remodel-District Attorney $100,000 -$100,000 $0 Remodel New Facility-Probation $220,599 $312,973 $533,572 Bridge Prevention Maint. Prog., Rehab-Roads $15,000 $659,000 $674,000 Bridge Prevention Maint. Prog., Scour-Roads $15,000 $129,000 $144,000 Requested position changes since recommended budget: (1) Public Works Director – BU 1903 (Changed to Flex) 1 Public Works Director I/II – BU 1903 (Changed to Flex) (1) Deputy Public Works Director-Maintenance – BU 1903 (Changed to Facilities) 1 Deputy Public Works Director-Facilities – BU 1903 (Changed from Maintenance) (1) Deputy Public Works Director-Operations – BU 1903 (Moved to BU 4121) (2) Deputy Sheriff I/II – BU 2201 (Directly Referenced as Cannabis-Focused) 2 Deputy Sheriff I/II (Cannabis)– BU 2201 (Directly Referenced as Cannabis-Focused) (1) Deputy Director of Public Health – BU 4011 (a decrease of 1 FTE) 1 Health Services Program Manager – BU 4011 (an increase of 1 FTE) (1) Peer Support Specialist LatinX – BU 4014 (Reclass to Peer Support Specialist, Senior) (1) Peer Support Specialist Native American – BU 4014 (Reclass to Peer Support Specialist, Senior) 2 Peer Support Specialist, Senior – BU 4014 (Changed from LatinX and Native American) (3) Substance Abuse Programs Coordinator – BU 4015 3 Substance Use Disorder Programs Coordinator – BU 4015 (13) Substance Abuse Counselor I/II/III/Sr. – BU 4015 13 Substance Use Disorder Counselor I/II/III/Sr. – BU 4015 1 Deputy Public Works Director-Operations – BU 4121 (Moved from BU 1903) These proposed changes result in no net increase or decrease in County positions. Fiscal Impact: Your approval of this Recommended Final Budget will enable the County to meet its statutory obligations and continue operations for FY 2026-27. 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.- and/or Consultant Selection Policy-Compliant (describe process undertaken in “Executive Summary”) ☐ Section 2-38 Exemption from Competitive Bidding (rationale in “Executive Summary,” attach documentation, as needed) ☐ For Technology Purchases: Vetted and Supported by the Technology Governance Committee (“Yes,” if checked) ☐ Other (Please describe in Executive Summary) Consistency with Vision 2028 (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 2026-27 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 2026-27 to Conform to the Adopted Budget.

Memorandum Date: September 29, 2026 To: The Honorable Brad Rasmussen, Chair, Lake County Board of Supervisors From: Patrick Sullivan, Treasurer – Tax Collector Jenavive Herrington, Auditor - Controller Subject: Consideration of Report on Establishment of $2.5 Borrowing Capacity for Upper Lake Unified School District through the County Treasury Executive Summary: Upper Lake Unified School District is experiencing an immediate and urgent need to borrow through the County Treasurer, in order to provide funding to maintain necessary operations. Please see the attached letter for additional information. 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.- and/or Consultant Selection Policy-Compliant (describe process undertaken in “Executive Summary”) ☐ Section 2-38 Exemption from Competitive Bidding (rationale in “Executive Summary,” attach documentation, as needed) ☐ For Technology Purchases: Vetted and Supported by the Technology Governance Committee (“Yes,” if checked) ☐ Other (Please describe in Executive Summary) Consistency with Vision 2028 (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: Report only. No action.

Memorandum Date: September 29, 2026 To: The Honorable Lake County Board of Supervisors From: Susan Parker, County Administrative Officer Pam Samac, Human Resources Director Subject: Consideration of Update on Employee Health Benefits Executive Summary: Background Health care costs continue to rise, and this remains a nationwide challenge driven by factors such as higher prescription drug prices, increased use of specialty care, and rising provider costs. The County of Lake contracts with the PRISM Health Insurance Program to provide health coverage for its employees and eligible dependents. PRISM is a joint powers authority that allows public agencies across California to purchase health coverage together as a group. To ensure the County is receiving the best value, staff conducted a market review of available alternatives. No more competitive options were identified. The results were as follows: Aetna: Declined to quote Anthem: Declined; not competitive Cigna: Declined; not competitive Blue Shield: Declined; not competitive UnitedHealthcare: Declined; not competitive As a result, PRISM remains the most cost-effective option for the County. Because PRISM is a pooled program, risk is spread across many participating counties, which helps insulate the County from sharp cost increases that a single employer might face on its own. A single large claim or a difficult claims year has less impact on the County's rates than it would under a stand-alone plan, which also makes premiums more stable and predictable for budgeting. 2027 Open Enrollment (September 14 – October 9, 2026) In preparation for the 2027 plan year, Human Resources has taken the following steps: Returned to in-person open enrollment meetings so employees can ask questions directly and get help choosing the plan that best fits their needs Increased awareness of lower-cost health care options, such as telehealth, urgent care instead of the emergency room for non-emergencies, and generic prescriptions, so employees can make better use of available services while reducing costs for both themselves and the County Conducted a cost-share survey of management, elected, and confidential staff to gather input on how premium costs are shared between the County and employees Researched alternative health care options to confirm the County's current program remains the best available choice Next Steps Human Resources, Alliant, and PRISM will continue to closely monitor health care options and costs, and staff will return to the Board with updates or recommendations as needed. 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.- and/or Consultant Selection Policy-Compliant (describe process undertaken in “Executive Summary”) ☐ Section 2-38 Exemption from Competitive Bidding (rationale in “Executive Summary,” attach documentation, as needed) ☐ For Technology Purchases: Vetted and Supported by the Technology Governance Committee (“Yes,” if checked) ☐ Other (Please describe in Executive Summary) Consistency with Vision 2028 (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: Presentation only.