MEMORANDUM
COUNTY OF RIVERSIDE
EXECUTIVE OFFICE

LISA BRANDL
Chief operating officer

George A. Johnson
County Executive Officer

TO:

All Department Heads

FROM:

George Johnson, County Executive Officer

DATE:

March 26, 2020

RE:

COVID-19 Financial Impacts

DON KENT
Assistant County Executive Officer
County finance officer

As we all know, the current COVID-19 pandemic is without precedent and continues to evolve
globally and throughout our nation, state and county. From day one in January when the
chartered jet landed at March ARB to where we are at today, I want to thank you all on the
frontlines and behind the scenes for the work that you do. The response from our county team
has been excellent, and I couldn’t be prouder of the tremendous efforts in serving the citizens
and residents of Riverside County.
Currently we are experiencing mounting costs, close to $3 million to date, related to the COVID19 crisis. The burn rate of close to $1 million per week could approach $12 million by June; an
unforeseen expense just a few short weeks ago. As such, the county has no choice but to front
the cost until reimbursements come through later from the federal and state government.
Fronting these costs, along with revenue shortfalls and other unknown impacts will be damaging
to our current fiscal condition, therefore, we need be strategic with our spending. In looking at
the financial situation of the county during this extraordinary time, for this current fiscal year and
FY 20/21, we are projecting major impacts to many of our sources of general fund discretionary
revenue such as interest earnings, sales tax, documentary transfer tax and transient occupancy
tax, to name a few. In addition, we have the uncertainty surrounding what the impacts will be
on counties with the Governor’s release of the revised budget in May.
Current projections of revenue losses to the FY 20/21 budget could approach $50 million or more
and varies widely based upon duration and severity of the crisis on our region. Also, the volatility
roiling the financial markets will have an impact on our normal cash flow management
operations. This coupled with the closure of some revenue-generating county facilities as well
as a dramatic increase in unemployment and private sector business will undoubtedly affect our
organization. Losses to CalPERS (over $60 billion as of yesterday), will drive our already rising
pension contribution rates higher down the road.
There are only 97 days of this fiscal year remaining. To blunt the projected revenue losses,
effective immediately, I am directing all departments to eliminate all non-mission critical, nonessential spending, with impacts to Net County Cost (NCC).

ROBERT T. ANDERSEN COUNTY ADMINISTRATIVE CENTER
4080 LEMON STREET  FOURTH FLOOR  RIVERSIDE, CALIFORNIA 92501  (951) 955-1110  fax (951) 955-1034

 See below a short list of items having NCC impact that will need to be approved:

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

New hiring and/or filling vacant, funded positions. These will continue to need routing
through the portfolio ACEO for approval
Purchase of any capital assets $5,000 or greater. Provide a list to your Executive Office
Analyst for review and approval. Please note that COVID-19 purchases are an exception
to this rule (please notate appropriately)
Capital Improvement Program (CIP) submissions with NCC funding attached
All expenses related to training and conferences as well as all expenses related to travel
(see RIVCO Budget Form 3700 for account detail). Exceptions may include critical health
or public safety requests

We understand there will be questions pertaining to this directive. Your department may be
asked for justification, with exceptions that may be approved by the portfolio ACEO, Chief Deputy
CEO, or higher. Also, please work with your Executive Office Analyst to assist.
In addition, to further curb or lessen the impacts, I am also asking all departments with internal
resources from which you can draw upon to fund certain parts of your operations, namely subfunds, to do so first prior to using any NCC. Also, work will continue with departments’ FY 20/21
budget submittals. There should be no expectation of full funding as the Executive Office will be
compiling cut scenarios due to the new economic realities. What you have recently submitted
may be subject to change.
Over the past few years, we have worked together to build reserves for economic uncertainty.
The time for drawdown has come much quicker than anticipated; how much and for how long is
unknown. This unprecedented event in our lifetimes will require us all to do our part to keep the
necessary and critical services of our county functioning properly, and it is imperative that we
retain our financial strength to carry out this mission today, and in the future. Thank you all again
for your hard work and dedication to the citizens and residents of Riverside County.
Bcc: Board of Supervisors
Cc: Board of Supervisors Chiefs of Staff

ROBERT T. ANDERSEN COUNTY ADMINISTRATIVE CENTER
4080 LEMON STREET  FOURTH FLOOR  RIVERSIDE, CALIFORNIA 92501  (951) 955-1110  fax (951) 955-1034