Title
a. Support authorizing and directing the Auditor-Controller to amend the Housing and Community Development Fiscal Year 2026-27 Adopted Budget for the Permanent Local Housing Allocation, Fund 1271, Department 31006, expense category 73000, to increase appropriations by $111,679.95 funded with prior year’s fund balance.
Body
RECOMMENDATION:
It is recommended that the Budget Committee:
a. Support authorizing and directing the Auditor-Controller to amend the Housing and Community Development Fiscal Year 2026-27 Adopted Budget for the Permanent Local Housing Allocation, Fund 1271, Department 31006, expense category 73000, to increase appropriations by $111,679.95 funded with prior year’s fund balance.
SUMMARY:
The Housing and Community Development Department (HCD) and Department of Social Services (DSS) entered an Inter-Departmental Memorandum (IDM) for Permanent Local Housing Allocation Activity 6 Projects: Navigation Center and Case Management Services. The IDM covers the time of June 30, 2021, through December 31, 2026. In June 2026, HCD was notified that management of the Navigation Center was moving from DSS to County Administrative Office (CAO). The budget set for Fiscal Year 2025-26 did not include all the funds allocated to DSS.
DISCUSSION:
On June 28, 2022, the HCD and DSS entered an IDM to provide Permanent Local Housing Allocation (PLHA) funding for Activity 6 projects, specifically the Navigation Center - Salinas SHARE Center and Case Management Services. The IDM was subsequently amended on March 4, 2024, and covers the period from June 30, 2021, through December 31, 2026. The amended IDM provides up to $1,593,176 for the Navigation Center - Salinas SHARE Center and $790,275 for Case Management Services.
The Fiscal Year (FY) 2025-26 Adopted Budget did not include sufficient appropriations to fully reimburse DSS for expenditures incurred under Activity 6. At the time the budget was developed, expenditures under the IDM were anticipated to continue through December 31, 2026.
In June 2026, HCD was notified that management responsibility for the Salinas SHARE Center would transition from DSS to the County Administrative Office (CAO). As a result of this transition, the remaining DSS expenditures associated with the Activity 6 project were incurred by June 30, 2026, rather than by December 31, 2026, as previously anticipated.
An amendment to the FY 2026-27 Adopted Budget is therefore necessary to increase appropriations by $111,679.95. Of this amount, $106,062.14 will provide the necessary budget authority to reimburse DSS for eligible expenditures incurred through June 30, 2026. The remaining $5,617.81 consists of $5,243.81 for HCD staff time and $374.00 for County Counsel expenses associated with administration of the PLHA-funded activities.
The requested budget amendment does not increase the total funding authorized under the IDM or expand the scope of the Activity 6 projects. Rather, the amendment provides the necessary appropriation authority to account for the accelerated expenditure of previously authorized PLHA funds resulting from the transition of management responsibility for the Salinas SHARE Center from DSS to the CAO.
OTHER AGENCY INVOLVEMENT:
County Counsel approved the original IDM and Amended IDM as to form and has reviewed this request.
FINANCING:
Approval of this action in the amount of $111,679.95 will not impact on the County General Fund. The increased appropriations in Fund 1271, Department 31006, are related to expenses for the Salinas SHARE Center, Case Management Services, staff costs and county counsel. The recommended action will be totally funded from the fund balance of $1,191,927. No General Fund discretionary resources are required.
BOARD OF SUPERVISORS STRATEGIC PLAN GOALS:
The requested budget appropriation supports the Board of Supervisors’ strategic initiatives by ensuring continued funding for the Navigation Center and Case Management Services, which are critical components of the County’s Homelessness Initiatives under the Health & Human Services pillar. This increase enables the County to meet contractual obligations and maintain essential services that promote housing stability, improve access to care, and enhance overall community well-being.
Mark a check to the related Board of Supervisors Strategic Plan Goals [Providing funding to the Department of Social Services for the Salinas SHARE Center and unhoused street outreach help improve the well-being and quality of life of Monterey County residents]:
_X_ Well-Being and Quality of Life
____ Sustainable Infrastructure for the Present and Future
____ Safe and Resilient Communities
____ Diverse and Thriving Economy
____ Dynamic Organization and Employer of Choice
____ Administrative
Link to the Strategic Plan:
<https://www.countyofmonterey.gov/home/showdocument?id=139569>
Prepared by: Dawn Yonemitsu, Management Analyst II, x5387
Reviewed by: Darby Marshall, Housing Program Manager x5391
Approved by: Craig Spencer, Director of Housing and Community Development x5233