ORD-2013-035 Ordinance approving Budget Amendment #2 for FY 2013-14

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3 Sheriff Department 6. The Sheriffs Department has received additional funds of $25,775 from the Orange County Alcohol Beverage Control (ABC) Board for the purchase of a patrol vehicle. These funds are in addition to the annual distribution amount received from the ABC Board for FY 2013-14. This budget amendment provides for the receipt of these funds for the above mentioned purpose. (See Attachment 1, column 6) Housing, Human Rights and Community Development 7. During FY 2012-13, the Department of Housing and Urban Development (HUD) sequestered approximately $399,641 of the County's FY 2013-14 appropriation. The federal reduction significantly affected the budgets of the Section 8 Housing Choice Voucher (HCV) and HOME Investment Partnership Programs. The Section 8 HCV Program provides rent subsidies to low-income families and individuals leasing standard housing, in the County. Federal revenues fund the program, with the exception of 0.70 FTE of the Director's personnel costs ($97,194), funded by the County's General Fund. The federal government reduced the program's anticipated FY 2013-14 allocation by $373,133, which funded both rental assistance payments and program administration costs. Fortunately, the sequester would not significantly affect the provision of rental assistance because most of the decrease for rental assistance equaled 6% of the anticipated rental assistance budget. However, the sequestration measure reduced the administration budget by 31.5%, which has a significant impact on the budget. To adjust, the department eliminated its operations budget ($95,900), but a funding gap of $141,110 still remains, thus the only other option would require reduction- in-force (RIF) measures. A RIF would require the elimination of at least two staff positions and, potentially, the federally funded portion of the Department Director's position (0.30 FTE). The HOME Investment Partnership Program provides funding for such housing activity as the housing rehabilitation program, new construction partnerships, first-time homebuyers programs and property acquisition. Sequestration measures reduced this program budget by 13% this year. On the program side, the presence of program income generated from repayments to the program provided some additional funding for projects, however it did not cover all budget needs caused by sequestration, particularly administrative expenses. The outstanding balance of $7,329 remains, after a HUD budget revision, made in June 2013. To avoid reductions in staff or program assistance payments, the department requests a fund balance appropriation, from the General Fund, of $148,439 to fund the Section 8 Program ($141,110), in the Housing Fund, and the HOME Investment Partnership Program ($7,329), in the Community Development Fund. This budget amendment provides for the fund balance appropriation of $148,439 for the above mentioned purposes. (See Attachment 1, column 7) FINANCIAL IMPACT: Financial impacts are included in the background information above. RECOMMENDATION(S): The Interim Manager recommends the Board approve budget amendments for fiscal year 2013-14.