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Council adds in‑house legal department line in draft budget; $50,000 set aside for possible litigation
Summary
City attorney sought a new in‑house legal department budget and two staff positions; council discussed hours gained versus prior outside counsel and approved a one‑time $50,000 allocation for litigation costs tied to a suit the council previously authorized.
City leaders reviewed a newly created legal department line in the proposed fiscal 2026 budget at the Aug. 11 Lake City Council workshop, with staff arguing the change would increase regular legal coverage and help address a backlog of compliance and contract matters.
The city attorney told councilors the new department adds two positions (a full‑time city attorney and a legal assistant) and increases in‑house legal hours compared with prior outside counsel arrangements. “Prior to creating the department, you were getting about 73 hours a month in legal services. Under the new department, you’re getting all of my time plus the legal assistant,” the city attorney said, framing the increase in hours as a “value proposition.”
Councilors asked for specifics on line items. The attorney said staff had identified outside counsel to handle specialized matters — foreclosures, complex litigation and other episodic services — and recommended budgeting a nonrecurring $50,000 legal‑fees line for a potential lawsuit the council previously authorized against the former city manager. He said firms interested in representing the city had requested assurance of budgeted funds before taking the case.
City Manager Don Rosenthal and the attorney said the newly budgeted in‑house hours should reduce the backlog of expired contracts, inconsistent policies and other matters cited in multiple departments. Council members pressed on whether the new in‑house department would reduce outside counsel spending overall; staff said the budget increases reflect both the higher in‑house availability and a separate allocation for specialized outside services.
Councilors and the attorney discussed a plan to accelerate code‑enforcement foreclosures using a flat‑fee outside counsel identified by staff. The attorney said the city had found counsel willing to work on a flat‑fee basis to “accelerate that process.”
No formal ordinance vote occurred during the workshop; staff said the line items would be included in the draft budget for council consideration before final adoption.
