Lake County supervisors weigh fee increases and staff cuts to cover Community Development shortfall
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Summary
County staff told the Board that the Community Development Department cannot make a loan payment this fiscal year and offered three budget options — ranging from no fee increases with layoffs to fully unsubsidized fees to retain staff — while the board signaled consensus to hire a consultant and members of the public urged an independent audit.
The Lake County Board of Supervisors on the agenda item for the Community Development Department heard staff say the building division cannot make a loan payment this fiscal year and was shown three budget options to address a roughly $500,000 deficit.
Deputy Administrator Shannon Walker Smith told the board, "the building division will be unable to make a loan payment this fiscal year," and said staff recommend spreading repayment over additional years while rebuilding reserves. Staff presented three drafts: Option 1 with no fee increases and significant staff reductions; Option 2 with moderate fee increases plus staff reductions; and Option 3 with fully unsubsidized fees to maintain current staffing.
Maria Turner, Community Development director, and staff described a November transfer of a $290,000 loan that temporarily covered shortfalls and showed that, without that transfer, the division would have been about $61,000 negative in late February. Casey Moreno summarized the department's fee-analysis approach, saying the model uses indirect costs, overhead rates and billable-hour calculations and applies valuation-based fees tied to construction cost consistent with ICC guidance.
Several supervisors urged a broader strategy rather than immediate cuts. "I think we need a consultant that does a study for us to figure out what the fees are," Supervisor Sabatier said, arguing the county should design fees to incentivize development rather than simply raise rates or cut public-facing staff. The board's chief administrative officer said staff have begun developing a scope of work and offered administrative assistance to accelerate hiring a consultant.
Members of the public urged stronger oversight and different remedies. Margot Kambara called for an independent audit of the $390,000 shortfall and monthly financial updates until confidence in CDD reporting is restored, saying the options presented were "extreme" and that biannual updates are insufficient. Skye Leewald of Pillsbury Family Farms criticized approving raises while proposing frontline cuts, saying reductions to public-facing positions could create bottlenecks for permit applicants. A remote caller identifying as Sterling accused department leadership of mismanagement and warned that higher fees could discourage permit seekers.
Staff clarified that the cannabis revenue fund is separate from CDD's operating budget: fees processed through CDD that flow into the cannabis revenue fund are journaled back quarterly, but CDD does not control the larger fund. Staff also agreed to return with a policy proposal clarifying how fines and enforcement discretion would be applied, particularly in cannabis compliance monitoring.
The board did not take a formal vote on any budget action at the meeting. Chair closed the item after members expressed support for retaining a consultant to perform a rapid, independent review of fees and departmental structure and for staff to return with more refined options during the budget process.
