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1 <br /> ORANGE COUNTY <br /> BOARD OF COMMISSIONERS <br /> ACTION AGENDA ITEM ABSTRACT <br /> Meeting Date: April 23, 2020 <br /> Action Agenda <br /> Item No. 1 <br /> SUBJECT: COVID-19 Pandemic Economic Impact on the FY2020-21 Orange County <br /> Manager's Recommended Budget <br /> DEPARTMENT: County Manager <br /> ATTACHMENT(S): INFORMATION CONTACT: <br /> Attachment A - FY2019-20 Economic Bonnie Hammersley, Orange County <br /> Contingency Plan Manager, (919) 245-2306 <br /> PURPOSE: To receive information on the COVID-19 Economic Impact on the FY2020-21 <br /> Orange County Manager's Recommended Budget projections. <br /> BACKGROUND: The COVID-19 pandemic has caused an unprecedented human and health <br /> crisis. The measures necessary to contain the virus have caused an economic recession. At <br /> the present, there is great uncertainty about its severity and duration due to the lack of a vaccine <br /> and the public health measures which include social distancing, limited business activity and <br /> uncertainty if a second wave occurs following after achieving an apex in the number of reported <br /> cases. <br /> On March 23, 2020, the County Manager directed the Orange County Department Directors to <br /> comply with the FY2019-20 Economic Contingency Plan (Attachment A). The implementation of <br /> the contingency plan began to address the economic impact of the COVID-19 pandemic to <br /> Orange County government/residents. The strict monitoring of expenditures in the 4t" quarter <br /> helps address the immediate financial challenges and will assist in preserving County services <br /> as well as jobs to allow the County to continue to serve Orange County residents. In addition, <br /> future measures will be included in the County Manager's Recommended FY2020-21 Budget. <br /> Due to the timing of the FY2020-21 budget process and the COVID-19 pandemic, the revenue <br /> projections Pre-COVID and Post-COVID differ significantly. In an effort to manage expectations <br /> prior to the release of the FY2020-21 County Manager's Recommended Budget, the County <br /> Manager will share detailed information on the revenue projections for the BOCC at the April 23, <br /> 2020 work session. The revenue sources projected to be impacted include property tax, sales <br /> tax, charges for services including Planning Permits and Sportsplex user fees and occupancy <br /> taxes. <br /> FINANCIAL IMPACT: There is no financial impact associated with receiving this information. A <br /> financial impact on the County is anticipated from the COVID-19 Pandemic. <br />