Agenda - 04-23-20; Item 1 - COVID-19 Pandemic Economic Impact on the FY2020-21 Orange County Manager's Recommended Budget

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Attachment A 3 FY2019-20 ECONOMIC CONTINGENCY PLAN Effective Immediately 1. Reduce Purchasing/Spend Rate (April-June)- Review General Fund, Sportsplex and Visitors Bureau encumbrances. Each director and business officer can assist on identifying discretionary contractual obligations that may be deemed discretionary during this pandemic crisis norms i.e. social distancing. • Cancel remaining travel/training; excludes certification training • NO Recurring Capital purchases the rest of the fiscal year • Cancel all discretionary encumbrances Action steps: Identify each department encumbrances/contractual obligations and potential savings as a result of encumbrance cancellations. The Sportsplex and Visitors Bureau funds are included due to revenue loss due to the pandemic impact this fiscal year. Savings estimates to be determined. 2. Close Monitoring of Revenues and Expenditures -The Third Quarter Financial Report and remaining monthly April May and June reports will be carefully reviewed and escalated to you as necessary during this recession. Action steps: Timely communication with department directors and business officers and review of budget versus actual reporting. This will provide variance analysis information on each department revenues and expenditures status, and necessary follow-up with department directors and staff continued well in advance of the end of the fiscal year. Charges for Services and Intergovernmental Revenues (Public Transit) are being monitored closely. Expenditure tracking has been implemented as well with a coronavirus account for Animal Services, Asset Management Services, Emergency Services, Health and Social Services. 3. Hiring Freeze -The hiring freeze includes all vacant county positions. Exemptions from the freeze include mandatory positions in public safety, health and human services. Action steps: Human Resources Director will monitor requests to fill positions and collaborate with the Managers office for approval. 4. Pandemic Internal Transfer- Final determination of the borrowing amount will be determined through our fiscal year-end breakeven analysis. Similar measures have been successful by other jurisdictions during the Great Recession when there is clear objective to maintain the fiscal integrity of all funds. Action steps: Finance Department will monitor the non-general fund accounts for funds that would be available to transfer to the general fund at year-end for a break-even result.