Board of Supervisors Tues Mtg 10-06-26· repayment plan for General Fund loan Behavioral Health Srvcs

The Lake County, California Board of Supervisors considered the October 6, 2026 item establishing a repayment plan for the outstanding $2 million General Fund loan to Lake County Behavioral Health Services (Resolution 2025-74). The Board approved a seven-year, interest-free repayment plan, amended to require quarterly rather than annual payments; the resolution also provides for updates at least quarterly. Behavioral Health staff said repayment would come from Medicaid revenue and that a shorter schedule could constrain cash flow and provider payments. County Counsel raised legal questions about charging interest, and staff said they knew of no lawful Behavioral Health funding source for interest payments. The Board discussed early repayment when funds are available and said missed payments should be brought back for Board consideration. The resolution passed 4-1, with Supervisor Spatier opposed.

No procurement activity, vendor selection, contract award, or purchasing decision was identified. The discussion concerned repayment of an internal General Fund loan and the department’s financial and cash-flow obligations.