Lake County supervisors voted unanimously to authorize a $390,000 short-term loan to the Community Development Department’s building division to cover near-term payroll and operating expenses.

Community Development Director Nina Turner told the board the division experienced "a significant drop in building permits" in 2024 and that while smaller permits continue, larger projects declined. Turner said salary increases and lost permit revenue left the division "just barely in the black" and that staff were requesting "this bridge loan to take us through the next 3 months." She said the department expects permitting activity to return to historical norms in 2025 and is confident it can repay the loan within the fiscal year.

Assistant Director Shannon Walker Smith offered an updated spreadsheet to supervisors and reiterated that, together, salary and operating costs plus the revenue shortfall were the reason for the temporary borrowing request. The board asked staff to make that updated spreadsheet available to the public; public commenter Margo Kambara asked specifically that it be posted to Granicus with the agenda materials.

Several supervisors pressed staff on repayment assumptions and legal questions about using future permit fees to cover past shortfalls. One supervisor noted that "salary increases only added up to 54,000 for the entire year," and raised concern about whether relying on future services to repay a $390,000 advance was legally and practically sound. Turner responded that historically, when permit fees exceeded expenses the division fed funding into reserves and she did not expect the repayment approach to be illegal if permit activity returned to prior levels.

Casey Moreno, deputy county administrative officer, proposed administrative oversight if the loan was approved: admin would have full signature authority over the department’s budgets, transfers would be routed through admin, monthly or bimonthly budget meetings would be required, and no overtime would be permitted until the loan was repaid or a different arrangement was agreed. "We would like to propose admin having full signature authority over the community development department," Moreno said.

Public commenter Tom Lasik urged caution, saying he did not understand the basis of staff's confidence that the loan would be repaid and asking the board to pause if staff could not clearly explain the repayment plan. "If you can't answer that, then that should at least be a pause to come back and, you know, gather the information so that you can make an informed decision," Lasik said.

Board members agreed to approve the resolution to avoid an immediate payroll disruption, while directing staff and administration to return with a more detailed repayment and oversight plan on Dec. 9. The resolution was offered by Supervisor Owen, seconded by an unnamed speaker, and the roll call recorded Supervisor Owen, Supervisor Swatier, Supervisor Paiske and Supervisor Rasmussen voting in favor; the vote was unanimous.

Key financial details noted during the discussion: the requested loan amount is $390,000; supervisors were told the division had reserves of $78,000 as of July 1, a cash-on-hand figure of $28,000 at the time of the meeting, and a technical shortfall when required reserve levels are accounted for. Staff also said a hiring freeze and a halt on nonessential equipment, training and travel are in effect while the midyear budget adjustment is developed.

The board's action authorized the short-term loan and required staff to return Dec. 9 with a detailed plan for repayment and financial monitoring. The agenda item concluded after the unanimous vote.