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CC 2013-06-25_08.c. Approval of Cost Allocation PlanMEMORANDUM TO: CITY COUNCIL FROM: DEBBIE MALICOAT, DIRECTOR OF ADMINISTATIVE SERVICEo/. SUBJECT: CONSIDERATION OF APPROVAL OF COST ALLOCATION PLAN DATE: JUNE 25, 2013 RECOMMENDATION: It is recommended the City Council adopt the Fiscal Year 2013-14 Cost Allocation Plan. IMPACT ON FINANCIAL AND PERSONNEL RESOURCES: The Fiscal Year 2013-14 Cost Allocation Plan will provide resources to the General Fund in the amount of approximately $752,900. This amount was included in the adopted Fiscal Year 13-14 & 14-15 Biennial Budget. BACKGROUND: A Cost Allocation Plan is a method of recovering the cost of General Fund services provided to other funds. In March of 1996, the first Cost Allocation Plan was adopted by the City Council. This was the first time that City costs were identified and divided between direct and indirect costs. Direct costs are expenses incurred in providing a specific cost objective, such as street maintenance, police protection, landscape maintenance, and water service. Indirect costs are expenses not readily identifiable with a particular operating program, but rather are incurred for a joint purpose, which benefits more than one fund/department. Common examples of indirect costs are accounting, purchasing, personnel, building maintenance, and utilities. Though indirect costs are not readily identifiable with direct operating programs, they can be allocated based on rational, logical methodology. ANALYSIS OF ISSUES: The Cost Allocation Plan is a method of allocating indirect costs, provided by the General Fund, based on the proportionate share of benefits received. Different indirect costs have different methods of allocation. For instance, payroll costs are allocated based on the number of full time positions and building maintenance costs are allocated based on the number of departmental square feet in City buildings. The Cost Allocation Plan is based on the current year's Annual Budget. The budget is used for allocation purposes, as the amounts identified therein are the best available projection of costs. Each year, the Cost Allocation Plan is updated because (1) the Item 8.c. - Page 1 CITY COUNCIL COST ALLOCATION PLAN JUNE 25, 2013 PAGE 2 more current the numbers, the better the allocation will mirror actual costs, and (2) technology allows for timely updating. ALTERNATIVES: The following alternatives are provided for City Council consideration: - Approve staff recommendation and approve plan; - Deny staff recommendation and retain current cost allocation numbers; - Modify staff recommendation and approve; - Provide direction to staff. ADVANTAGES: The Cost Allocation Plan provides additional revenue to the General Fund to reimburse costs for services from departments funded from the General Fund, but provided to fee based operations. DISADVANTAGES: The reimbursement to the General Fund will negatively impact other funds, particularly the Water and Sewer Funds. ENVIRONMENTAL REVIEW: No environmental review is required for this item. PUBLIC NOTIFICATION AND COMMENTS: The Agenda was posted in front of City Hall on Thursday, June 20, 2013. The Agenda and report were posted on the City's website on Friday, June 21, 2013. No public comments were received. CITY OF ARROYO GRANDE COST ALLOCATION PLAN FISCAL YEAR 2013-2014 Item 8.c. - Page 3 i CITY OF ARROYO GRANDE COST ALLOCATION PLAN TABLE OF CONTENTS Page Introduction Overview-Purpose of Cost Allocation Plan ...................................................................................................................1 Determining Direct and Indirect Costs ..........................................................................................................................1 Allocating Indirect Costs ...............................................................................................................................................2 Uses of the Cost Allocation Plan ...................................................................................................................................3 Preparation Frequency ...................................................................................................................................................3 Indirect Cost Allocation Summary of Direct and Indirect Costs...........................................................................................................................4 Schedule of Exclusions by Activity ...............................................................................................................................5 Schedule of Exclusions by Type ....................................................................................................................................6 Bases of Allocation of Indirect Costs ............................................................................................................................7 Summary of Departmental Indirect Cost Allocations and Rates ...................................................................................8 Summary of Indirect Cost Allocations ..........................................................................................................................9 Indirect Program Cost Allocations: Legislation & Policy ........................................................................................................................................10 Administration .................................................................................................................................................11 Administrative Services-Accounts Payable .....................................................................................................12 Administrative Services-Payroll ......................................................................................................................13 Administrative Services-Administration .........................................................................................................14 City Clerk .........................................................................................................................................................15 City Attorney ...................................................................................................................................................16 Non Departmental ............................................................................................................................................17 Government Buildings Maintenance-Personnel ..............................................................................................18 Government Buildings Maintenance-Services/Supplies .................................................................................19 Auto Shop ........................................................................................................................................................20 Item 8.c. - Page 4 1 CITY OF ARROYO GRANDE INTRODUCTION TO THE COST ALLOCATION PLAN OVERVIEW Purpose The purpose of this cost allocation plan is to estimate the total costs of providing direct services to the citizens of Arroyo Grande. A separate cost accounting analysis is required to do this, because in virtually all organizations, public or private, the cost of delivering services or producing goods can be classified into two categories: direct and indirect costs. Direct and Indirect Costs Direct costs are those which can be specifically identified with a cost objective, such as police protection, street maintenance, or water service. Indirect costs are support costs, which are not readily identifiable with a direct operating program, but are incurred for a joint purpose that benefits more than one cost objective. Typical indirect cost activities in a government are accounting, legal services, and building maintenance. Although indirect costs are generally not identifiable with direct cost programs, their cost should be reflected as an integral part of the total cost of providing specific goods or services. Budgeting and Accounting for Indirect Costs All indirect costs could theoretically be estimated and charged to direct service programs, but practical considerations generally preclude such handling. Instead most organizations separately budget and account for indirect costs, and provide a supplemental reporting vehicle to display estimated total costs to provide a direct program service. Such is the purpose of cost allocation plans: to allocate indirect costs to direct service programs in a logical and uniform manner. Determining Direct and Indirect Costs The first step in preparing the City’s cost allocation plan is determining direct and indirect costs. The costs of departmental programs that primarily provide service to the public are identified as direct costs whereas the costs of programs which primarily provide services to the organization are identified as indirect costs. In accordance with generally accepted accounting principles, only operating costs are utilized in allocation plans: debt service, transfers, and capital outlay costs are excluded from calculations. Item 8.c. - Page 5 CITY OF ARROYO GRANDE Introduction to the Cost Allocation Plan 2 Allocating Indirect Costs Indirect Cost Rates For general purposes, a citywide indirect cost rate can be used as the basis for allocating indirect costs. Such a rate is simply the ratio between indirect costs and direct costs, which can be computed for the City as a whole once the direct and indirect cost base has been determined. Provided on page 4 is a summary of direct and indirect costs for Arroyo Grande based upon the 2013-2014 operating budget along with the citywide indirect cost rate. By applying the overall indirect cost rate to any specific direct cost program, the total cost of that program can be determined. For example, if the overall indirect cost rate were 20%, the total cost of a $100,000 direct cost program in Arroyo Grande would be $120,000. Bases of Allocation The general-purpose method above assumes that all indirect costs are incurred proportionately to each of the direct service programs. However, the benefit received from certain support department programs by a direct service department may be more closely related to an activity indicator other than cost. For example, if a service department does not have any City staffing associated with it; distributing personnel costs to it from a support department would not be a reasonable allocation of costs. Therefore, the cost allocation plan developed for Arroyo Grande establishes separate and variable basis of cost allocation for certain major identifiable cost categories. Indirect costs can thus be allocated in a fair yet simple manner, and also consistently. Page 7 displays the primary methods of allocation used for various indirect cost programs. Recognition is given to the concept that the cost of gathering and dividing information to develop a reasonable cost allocation plan should not exceed the benefits likely to be gained from the study. In performing the cost allocations, all indirect costs have been allocated only to direct programs rather than using a more complex sequential allocation system. Under a sequential system for example, City Administration costs, or Administrative Services, or City Attorney costs would first be allocated to other indirect cost programs. In turn, those expanded indirect costs would then be allocated to the direct cost programs. Such a process would be fairly time consuming. Although there are some conceptual difficulties with this approach, the gain from a complex sequential allocation system would be insignificant, and the cost of preparation and review is significantly reduced in the simpler approach utilized here. Item 8.c. - Page 6 CITY OF ARROYO GRANDE Introduction to the Cost Allocation Plan 3 USES OF THE COST ALLOCATION PLAN This cost allocation plan can be used in numerous financial decision-making situations. The main areas of use of this basic analytical tool could be: Water Enterprise and Other Utility Fund Accounting A complete costing of Arroyo Grande’s water enterprise and sewer utility can be achieved by extended allocation of General Fund indirect support costs to utility operations. The cost allocation plan could achieve such a goal. General Fund User Charges This cost allocation plan can be utilized to determine appropriate user fees for General Fund services such as planning applications and recreation activities. Grant Administration Under Federal cost accounting policies (Circular A-87) it is permissible to include indirect costs in accounting for grant programs. By establishing indirect cost rates, total costs can be applied for and recovered. Modest changes to allocations might be required under Circular A-87 when used for this purpose. Contracting Out Versus In-House City employees could make frequent use of this cost allocation plan when comparing the cost of providing a service “in-house” to contracting with an outside service provider. PREPARATION FREQUENCY In a true cost accounting system, indirect costs would be computed and allocated on an ongoing basis throughout the fiscal year based on actual costs. However, frequent updating in municipal finance would not serve any specific purpose, but would consume significant accounting resources. As such, it is recommended that the cost allocation plan be prepared annually. Item 8.c. - Page 7 CITY OF ARROYO GRANDE COST ALLOCATION PLAN FOR FISCAL YEAR 2013-2014 Summary of Direct and Indirect Costs Planning & Development 603,320$ Legislation and Policy 98,935$ Police 5,609,350 Engineering 381,690 City Manager 251,470 Building Safety 239,850 Administrative Services: Public Works: Accounts Payable 449,172 Public Works Admin 459,170 Payroll 224,586 Sewer Maintenance 273,880 Business Licensing 74,862 Street Maintenance 636,455 Administrative Services Total 748,620 Water System Maintenance 2,255,275 Lopez Water System 2,271,500 Legislative & Information Svcs: Parks Maintenance 497,355 City Clerk 343,730 Soto Sports Complex 191,910 Information Technology 213,720 Printing/Copying 34,100 Recreation:Legislative & Information Svcs Total 591,550 Administration 244,340 Other Recreation Programs 511,620 City Attorney 183,250 Other Budget Activity:Non Departmental 700,945 Landscape District Maintenance 7,430 Parkside Assessment District 20,700 Government Buildings Gracelane Assessment District 9,800 Personnel 111,860 Transportation 17,000 Services/Supplies 75,350 Downtown Parking District 3,525 Government Buildings Total 187,210 Auto Shop 119,855 TOTAL DIRECT COSTS 14,234,170 TOTAL INDIRECT COSTS 2,881,835 Overall indirect cost rate: (indirect costs divided by direct costs) 20.25% Capital projects, capital equipment, transfers, and debt services costs are excluded from amounts shown, for calculating indirect cost rates in accordance with generally accepted accounting principles. Only operating costs are utilized. See pages five (5) and six (6) for schedules of exclusions. DIRECT PROGRAMS COSTS INDIRECT PROGRAM COSTS 4 Item 8.c. - Page 8 CITY OF ARROYO GRANDE COST ALLOCATION PLAN FOR FISCAL YEAR 2013-2014 Schedule of Exclusions By Activity Police:City Council: Debt 133,880$ Capital items 5,000$ Capital items 40,150 174,030$ Parks:Administration: Debt 21,000 Capital items 34,200 Recreation:Debt 29,915 Capital items 1,200 Non Departmental: Transportation Debt 11,600 Transfers 414,360 Transfers 40,000 Soto Sports 51,600 Debt 6,000 City Manager/Sales Tax: Streets Debt 70,480 Debt 54,000 Transfers 1,724,002 Transfers 75,850 129,850 1,794,482 Engineering: Capital items 10,000 Government Buildings: Sewer Maintenance: Debt 6,000 Capital items 2,500 Debt 21,000 TOTAL INDIRECT PROGRAM COSTS 1,921,197 Transfers 683,900 707,400 Landscape Maint:TOTAL DIRECT & INDIRECT 5,268,107$ Transfers 2,700 Parkside Maint: Transfers 4,600 Water System: Transfers 1,564,970 Capital items 93,050$ Lopez Admin: Debt 353,875 Transfers 307,800 Transfers 4,821,182 Downtown Parking: Transfers 3,000 TOTAL DIRECT & INDIRECT 5,268,107$ TOTAL DIRECT PROGRAM COSTS 3,346,910$ SUMMARY OF EXCLUSIONS: DIRECT PROGRAM COSTS INDIRECT PROGRAM COSTS 5 Item 8.c. - Page 9 CITY OF ARROYO GRANDE COST ALLOCATION PLAN FOR FISCAL YEAR 2013-2014 Schedule of Exclusions by Type INDIRECT PROGRAM COSTS Capital items:Capital items: Police 40,150$ City Council 5,000$ Engineering 10,000 Administration 34,200 Recreation 1,200 Sewer Maintenance 2,500 Total Capital Items Exclusion 39,200$ Total Equipment Exclusion 53,850$ Debt: Government Buildings 6,000 Debt: Non Departmental 11,600 Police 133,880 IT 29,915 Parks 21,000 City Manager/Sales Tax 70,480 Soto Sports Complex 6,000 Total Debt Exclusion 117,995 Sewer Maintenance 21,000 Streets 54,000 Transfers: Non Departmental 40,000 Total Debt Exclusion 235,880 City Manager/Sales Tax 1,724,002 Transfers:Total Transfer Exclusion:1,764,002 Lopez 307,800 Landscape 2,700 TOTAL INDIRECT PROGRAM COSTS 1,921,197 Parkside 4,600 Streets 75,850 TOTAL DIRECT & INDIRECT 5,268,107$ Transportation 414,360 Downtown Parking 3,000 Water 1,564,970 SUMMARY OF EXCLUSIONS: Sewer Maintenance 683,900 Capital items 93,050$ Total Transfer Exclusion:3,057,180 Debt 353,875 Transfers 4,821,182 TOTAL DIRECT PROGRAM COSTS 3,346,910$ TOTAL EXCLUSIONS 5,268,107$ DIRECT PROGRAM COSTS 6 Item 8.c. - Page 10 Legislation and Policy Council Agenda Items City Manager Total Operating Budget Non Departmental Total Operating Budget Administrative Services: Accounts Payable (60% of Budget) Total Operating Budget Payroll (30% of Budget)Full Time Equivalent (FTE) Staffing Administration (10% of Budget)Total Operating Budget Legislative & Information Services City Clerk Council Agenda Items Printing/Copying Total Operating Budget Management Information System Total Operating Budget City Attorney Total Operating Budget Government Buildings: Personnel Square Footage (w/o Fire Station) Services and Supplies Dept. Square Footage Auto Shop Vehicle Maintenance Budget (w/o Fire & Building Vehicles) CITY OF ARROYO GRANDE COST ALLOCATION PLAN FOR FISCAL YEAR 2013-2014 Bases of Allocation of Indirect Costs 7 Item 8.c. - Page 11 CITY OF ARROYO GRANDE COST ALLOCATION PLAN FOR FISCAL YEAR 2013-2014 Summary of Departmental Indirect Cost Allocations and Rates Indirect Direct Indirect Legis. &City Admin.City City Non-Govt. Bldg.Auto Direct Program Program Rate Cost Cost Policy Admin.Services Clerk Attorney Depart.Maint.Shop Planning & Development 48.54%603,320$ 292,875$ 42,740$ 21,170$ 37,199$ 148,491$ 7,770$ 29,720$ 5,785$ -$ Police 18.70%5,609,350 1,049,219 10,685 196,770 333,795 37,157 72,219 276,242 71,316 51,034 Building Safety 19.52%239,850 46,828 396 8,438 12,607 1,375 3,097 11,846 8,219 851 Public Works: Engineering 38.42%381,690 146,640 16,225 13,381 21,523 56,337 4,911 18,785 11,570 3,907 Public Works Admin 17.32%459,170 79,514 1,979 16,127 23,484 6,875 5,919 22,641 2,490 - Sewer Maintenance 25.27%273,880 69,199 2,770 9,586 17,540 9,624 3,518 13,458 2,490 10,212 Street Maintenance 24.47%636,455 155,739 6,332 22,318 32,790 21,999 8,191 31,332 2,490 30,287 Water System Maint.15.92%2,255,275 359,012 4,749 79,088 101,715 16,499 29,027 111,030 4,991 11,914 Lopez Water System 13.56%2,271,500 307,981 791 79,687 83,636 2,750 29,247 111,871 - - Total Public Works 17.81%6,277,970 1,118,085 32,846 220,187 280,688 114,084 80,813 309,117 24,030 56,320 Parks Maintenance 20.23%497,355 100,621 3,562 17,425 28,575 12,374 6,395 24,463 - 7,827 Recreation: Administration 29.28%244,340 71,541 4,353 8,588 15,369 15,124 3,152 12,056 12,899 - Other Rec. Programs 27.73%511,620 141,857 1,583 6,740 14,553 5,500 2,474 9,463 - 3,823 Soto Sports Complex 23.00%191,910 44,136 791 17,925 23,686 2,750 6,579 25,164 64,962 - Total Recreation 27.17%947,870 257,534 6,728 33,253 53,609 23,374 12,204 46,683 77,861 3,823 Other Activity: Landscape Maintenance 36.67%7,430 2,724 396 250 262 1,375 92 350 - - Parkside Assessment District 22.38%20,700 4,632 396 749 786 1,375 275 1,051 - - Gracelane Maint.31.69%9,800 3,106 396 350 367 1,375 128 491 - - Transportation 23.88%17,000 4,060 396 599 629 1,375 220 841 - - Downtown Parking 61.05%3,525 2,152 396 100 105 1,375 37 140 - - TOTALS 20.25%14,234,170$ 2,881,835$ 98,935$ 499,290$ 748,621$ 343,730$ 183,250$ 700,945$ 187,210$ 119,855$ 8 Item 8.c. - Page 12 CITY OF ARROYO GRANDE COST ALLOCATION PLAN FOR FISCAL YEAR 2013-2014 Summary of Indirect Cost Allocations INDIRECT PROGRAM COST ALLOCATIONS Legis. &Admin-City City Non-Gov. Bldg.Gov. Bldg.Auto Direct Program Program Policy istration Acct.Payroll Admin.Clerk Attorney Depart.Staff Supplies Shop Total Planning & Develop.42,740$ 21,170$ 19,045$ 14,980$ 3,174$ 148,491$ 7,770$ 29,720$ 3,456$ 2,328$ -$ 292,875$ Police 10,685 196,770 177,019 127,273 29,503 37,157 72,219 276,242 42,607 28,708 51,034 1,049,219 Building Safety 396 8,438 7,591 3,751 1,265 1,375 3,097 11,846 4,911 3,308 851 46,828 Public Works: Engineering 16,225 13,381 12,038 7,479 2,006 56,337 4,911 18,785 6,913 4,657 3,907 146,640 Public Works Admin 1,979 16,127 14,508 6,558 2,418 6,875 5,919 22,641 1,488 1,002 - 79,514 Sewer Maintenance 2,770 9,586 8,624 7,479 1,437 9,624 3,518 13,458 1,488 1,002 10,212 69,199 Street Maintenance 6,332 22,318 20,078 9,365 3,346 21,999 8,191 31,332 1,488 1,002 30,287 155,739 Water System Maint.4,749 79,088 71,149 18,708 11,858 16,499 29,027 111,030 2,987 2,004 11,914 359,012 Lopez Water System 791 79,687 71,688 - 11,948 2,750 29,247 111,871 - - - 307,981 Total Public Works 32,846 220,187 198,085 49,589 33,014 114,084 80,813 309,117 14,363 9,667 56,320 1,118,085 Parks Maintenance 3,562 17,425 15,676 10,286 2,613 12,374 6,395 24,463 - - 7,827 100,621 Recreation: Administration 4,353 8,588 7,726 6,356 1,288 15,124 3,152 12,056 7,707 5,192 - 71,541 Other Rec. Programs 791 17,925 16,125 4,874 2,688 2,750 6,579 25,164 38,815 26,146 - 141,857 Soto Sports Complex 1,583 6,740 6,064 7,479 1,011 5,500 2,474 9,463 - - 3,823 44,136 Total Recreation 6,728 33,253 29,915 18,708 4,986 23,374 12,204 46,683 46,523 31,338 3,823 257,534 Other Budget Activity: Landscape Maint.396 250 225 - 37 1,375 92 350 - - - 2,724 Parkside Maint.396 749 674 - 112 1,375 275 1,051 - - - 4,632 Gracelane Maint.396 350 314 - 52 1,375 128 491 - - - 3,106 Transportation 396 599 539 - 90 1,375 220 841 - - - 4,060 Downtown Parking 396 100 90 - 15 1,375 37 140 - - - 2,152 TOTALS 98,935$ 499,290$ 449,172$ 224,586$ 74,862$ 343,730$ 183,250$ 700,945$ 111,860$ 75,350$ 119,855$ 2,881,835$ Administrative Services 9 Item 8.c. - Page 13 CITY OF ARROYO GRANDE COST ALLOCATION PLAN FOR FISCAL YEAR 2013-2014 Indirect Program Cost Allocation INDIRECT COST PROGRAM: Legislation & Policy BUDGET: $98,935 BASE OF ALLOCATION: Council Agenda Items BASE OF PERCENT COST DIRECT COST PROGRAM ALLOCATION OF TOTAL ALLOCATION Planning & Development 108 43.20%42,740$ Police 27 10.80%10,685 Engineering 41 16.40%16,225 Building Safety 1 0.40%396 Public Works: Public Works Admin 5 2.00%1,979 Sewer Maintenance 7 2.80%2,770 Street Maintenance 16 6.40%6,332 Water System Maintenance 12 4.80%4,749 Lopez Water System 2 0.80%791 Parks Maintenance 9 3.60%3,562 Soto Sports Complex 4 1.60%1,583 Recreation & Building Maintenance: Administration 11 4.40%4,353 Other Programs 2 0.80%791 Other Budget Activity: Landscape Maintenance 1 0.40%396 Parkside Maintenance 1 0.40%396 Gracelane Maintenance 1 0.40%396 Transportation 1 0.40%396 Downtown Parking District 1 0.40%396 TOTAL DIRECT COST PROGRAMS 250 100.00% TOTAL INDIRECT COST ALLOCATION 98,935$ 10 Item 8.c. - Page 14 CITY OF ARROYO GRANDE COST ALLOCATION PLAN FOR FISCAL YEAR 2013-2014 Indirect Program Cost Allocation INDIRECT COST PROGRAM: Administration BUDGET: $499,290 BASE OF ALLOCATION: Total Operating Budget BASE OF PERCENT COST DIRECT COST PROGRAM ALLOCATION OF TOTAL ALLOCATION Planning & Development 603,320$ 4.24%21,170$ Police 5,609,350 39.41%196,770 Engineering 381,690 2.68%13,381 Building Safety 239,850 1.69%8,438 Public Works: Public Works Admin 459,170 3.23%16,127 Sewer Maintenance 273,880 1.92%9,586 Street Maintenance 636,455 4.47%22,318 Water System Maintenance 2,255,275 15.84%79,088 Lopez Water System 2,271,500 15.96%79,687 Parks Maintenance 497,355 3.49%17,425 Soto Sports Complex 191,910 1.35%6,740 Recreation & Building Maintenance: Administration 244,340 1.72%8,588 Other Programs 511,620 3.59%17,925 Other Budget Activity: Landscape Maintenance 7,430 0.05%250 Parkside Maintenance 20,700 0.15%749 Gracelane Maintenance 9,800 0.07%350 Transportation 17,000 0.12%599 Downtown Parking District 3,525 0.02%100 TOTAL DIRECT COST PROGRAMS 14,234,170$ 100.00% TOTAL INDIRECT COST ALLOCATION 499,290$ 11 Item 8.c. - Page 15 CITY OF ARROYO GRANDE COST ALLOCATION PLAN FOR FISCAL YEAR 2013-2014 Indirect Program Cost Allocation INDIRECT COST PROGRAM: Administrative Services-Payroll BUDGET: $224,586 BASE OF ALLOCATION: Full Time Equivalent (FTE) Employees BASE OF PERCENT COST DIRECT COST PROGRAM ALLOCATION OF TOTAL ALLOCATION Planning Division 4.00 6.67%14,980$ Police 34.00 56.67%127,273 Engineering Division 2.00 3.33%7,479 Building Safety Division 1.00 1.67%3,751 Public Works: Public Works Admin 1.75 2.92%6,558 Sewer Maintenance 2.00 3.33%7,479 Street Maintenance 2.50 4.17%9,365 Water System Maintenance 5.00 8.33%18,708 Lopez Water System - 0.00%- Parks Maintenance 2.75 4.58%10,286 Soto Sports Complex 2.00 3.33%7,479 Recreation & Building Maintenance: Administration 1.70 2.83%6,356 Other Programs 1.30 2.17%4,874 TOTAL DIRECT COST PROGRAMS 60.00 100.00% TOTAL INDIRECT COST ALLOCATION 224,586$ 13 Item 8.c. - Page 16 CITY OF ARROYO GRANDE COST ALLOCATION PLAN FOR FISCAL YEAR 2013-2014 Indirect Program Cost Allocation INDIRECT COST PROGRAM: Administrative Services-Accounts Payable BUDGET: $449,172 BASE OF ALLOCATION: Total Operating Budget BASE OF PERCENT COST DIRECT COST PROGRAM ALLOCATION OF TOTAL ALLOCATION Planning & Development 603,320$ 4.24%19,045$ Police 5,609,350 39.41%177,019 Engineering 381,690 2.68%12,038 Building Safety 239,850 1.69%7,591 Public Works: Public Works Admin 459,170 3.23%14,508 Sewer Maintenance 273,880 1.92%8,624 Street Maintenance 636,455 4.47%20,078 Water System Maintenance 2,255,275 15.84%71,149 Lopez Water System 2,271,500 15.96%71,688 Parks Maintenance 497,355 3.49%15,676 Soto Sports Complex 191,910 1.35%6,064 Recreation & Building Maintenance: Administration 244,340 1.72%7,726 Other Programs 511,620 3.59%16,125 Other Budget Activity: Landscape Maintenance 7,430 0.05%225 Parkside Maintenance 20,700 0.15%674 Gracelane Maintenance 9,800 0.07%314 Transportation 17,000 0.12%539 Downtown Parking District 3,525 0.02%90 TOTAL DIRECT COST PROGRAMS 14,234,170$ 100.00% TOTAL INDIRECT COST ALLOCATION 449,172$ 12 Item 8.c. - Page 17 CITY OF ARROYO GRANDE COST ALLOCATION PLAN FOR FISCAL YEAR 2013-2014 Indirect Program Cost Allocation INDIRECT COST PROGRAM: Administrative Services- Administration BUDGET: $74,862 BASE OF ALLOCATION: Total Operating Budget BASE OF PERCENT COST DIRECT COST PROGRAM ALLOCATION OF TOTAL ALLOCATION Planning & Development 603,320$ 4.24%3,174$ Police 5,609,350 39.41%29,503 Engineering 381,690 2.68%2,006 Building Safety 239,850 1.69%1,265 Public Works: Public Works Admin 459,170 3.23%2,418 Sewer Maintenance 273,880 1.92%1,437 Street Maintenance 636,455 4.47%3,346 Water System Maintenance 2,255,275 15.84%11,858 Lopez Water System 2,271,500 15.96%11,948 Parks Maintenance 497,355 3.49%2,613 Soto Sports Complex 191,910 1.35%1,011 Recreation & Building Maintenance: Administration 244,340 1.72%1,288 Other Programs 511,620 3.59%2,688 Other Budget Activity: Landscape Maintenance 7,430 0.05%37 Parkside Maintenance 20,700 0.15%112 Gracelane Maintenance 9,800 0.07%52 Transportation 17,000 0.12%90 Downtown Parking District 3,525 0.02%15 TOTAL DIRECT COST PROGRAMS 14,234,170$ 100.00% TOTAL INDIRECT COST ALLOCATION 74,862$ 14 Item 8.c. - Page 18 CITY OF ARROYO GRANDE COST ALLOCATION PLAN FOR FISCAL YEAR 2013-2014 Indirect Program Cost Allocation INDIRECT COST PROGRAM:City Clerk BUDGET: $343,730 BASE OF ALLOCATION: Council Agenda Items BASE OF PERCENT COST DIRECT COST PROGRAM ALLOCATION OF TOTAL ALLOCATION Planning & Development 108 43.20%148,491$ Police 27 10.81%37,157 Engineering 41 16.39%56,337 Building Safety 1 0.40%1,375 Public Works: Public Works Admin 5 2.00%6,875 Sewer Maintenance 7 2.80%9,624 Street Maintenance 16 6.40%21,999 Water System Maintenance 12 4.80%16,499 Lopez Water System 2 0.80%2,750 Parks Maintenance 9 3.60%12,374 Soto Sports Complex 4 1.60%5,500 Recreation & Building Maintenance: Administration 11 4.40%15,124 Other Programs 2 0.80%2,750 Other Budget Activity: Landscape Maintenance 1 0.40%1,375 Parkside Maintenance 1 0.40%1,375 Gracelane Maintenance 1 0.40%1,375 Transportation 1 0.40%1,375 Downtown Parking District 1 0.40%1,375 TOTAL DIRECT COST PROGRAMS 250 100.00% TOTAL INDIRECT COST ALLOCATION 343,730$ 15 Item 8.c. - Page 19 CITY OF ARROYO GRANDE COST ALLOCATION PLAN FOR FISCAL YEAR 2013-2014 Indirect Program Cost Allocation INDIRECT COST PROGRAM: City Attorney BUDGET: $183,250 BASE OF ALLOCATION: Total Operating Budget BASE OF PERCENT COST DIRECT COST PROGRAM ALLOCATION OF TOTAL ALLOCATION Planning & Development 603,320$ 4.24%7,770$ Police 5,609,350 39.41%72,219 Engineering 381,690 2.68%4,911 Building Safety 239,850 1.69%3,097 Public Works: Public Works Admin 459,170 3.23%5,919 Sewer Maintenance 273,880 1.92%3,518 Street Maintenance 636,455 4.47%8,191 Water System Maintenance 2,255,275 15.84%29,027 Lopez Water System 2,271,500 15.96%29,247 Parks Maintenance 497,355 3.49%6,395 Soto Sports Complex 191,910 1.35%2,474 Recreation & Building Maintenance: Administration 244,340 1.72%3,152 Other Programs 511,620 3.59%6,579 Other Budget Activity: Landscape Maintenance 7,430 0.05%92 Parkside Maintenance 20,700 0.15%275 Gracelane Maintenance 9,800 0.07%128 Transportation 17,000 0.12%220 Downtown Parking District 3,525 0.02%37 TOTAL DIRECT COST PROGRAMS 14,234,170$ 100.00% TOTAL INDIRECT COST ALLOCATION 183,250$ 16 Item 8.c. - Page 20 CITY OF ARROYO GRANDE COST ALLOCATION PLAN FOR FISCAL YEAR 2013-2014 Indirect Program Cost Allocation INDIRECT COST PROGRAM: Non Departmental BUDGET: $700,945 BASE OF ALLOCATION: Total Operating Budget BASE OF PERCENT COST DIRECT COST PROGRAM ALLOCATION OF TOTAL ALLOCATION Planning & Development 603,320$ 4.24%29,720$ Police 5,609,350 39.41%276,242 Engineering 381,690 2.68%18,785 Building Safety 239,850 1.69%11,846 Public Works: Public Works Admin 459,170 3.23%22,641 Sewer Maintenance 273,880 1.92%13,458 Street Maintenance 636,455 4.47%31,332 Water System Maintenance 2,255,275 15.84%111,030 Lopez Water System 2,271,500 15.96%111,871 Parks Maintenance 497,355 3.49%24,463 Soto Sports Complex 191,910 1.35%9,463 Recreation & Building Maintenance: Administration 244,340 1.72%12,056 Other Programs 511,620 3.59%25,164 Other Budget Activity: Landscape Maintenance 7,430 0.05%350 Parkside Maintenance 20,700 0.15%1,051 Gracelane Maintenance 9,800 0.07%491 Transportation 17,000 0.12%841 Downtown Parking District 3,525 0.02%140 TOTAL DIRECT COST PROGRAMS 14,234,170$ 100.00% TOTAL INDIRECT COST ALLOCATION 700,945$ 17 Item 8.c. - Page 21 CITY OF ARROYO GRANDE COST ALLOCATION PLAN FOR FISCAL YEAR 2013-2014 Indirect Program Cost Allocation INDIRECT COST PROGRAM: Government Building Maintenance Personnel BUDGET: $111,860 BASE OF ALLOCATION: Department Square Footage BASE OF PERCENT COST DIRECT COST PROGRAM ALLOCATION OF TOTAL ALLOCATION Planning & Development 600 3.09%3,456$ Police 7,400 38.09%42,607 Engineering 1,200 6.18%6,913 Building Safety 852 4.39%4,911 Public Works: Public Works Admin 258 1.33%1,488 Sewer Maintenance 258 1.33%1,488 Street Maintenance 258 1.33%1,488 Water System Maintenance 516 2.67%2,987 Lopez Water System - 0.00%- Parks Maintenance - 0.00%- Soto Sports Complex - 0.00%- Recreation & Building Maintenance: Administration 1,338 6.89%7,707 Other Programs 6,738 34.70%38,815 Other Budget Activity: Landscape Maintenance - 0.00%- Parkside Maintenance - 0.00%- Gracelane Maintenance - 0.00%- Transportation - 0.00%- Downtown Parking District - 0.00%- TOTAL DIRECT COST PROGRAMS 19,418 100.00% TOTAL INDIRECT COST ALLOCATION 111,860$ 18 Item 8.c. - Page 22 CITY OF ARROYO GRANDE COST ALLOCATION PLAN FOR FISCAL YEAR 2013-2014 Indirect Program Cost Allocation INDIRECT COST PROGRAM: Government Building Maintenance Supplies BUDGET: $75,350 BASE OF ALLOCATION: Department Square Footage BASE OF PERCENT COST DIRECT COST PROGRAM ALLOCATION OF TOTAL ALLOCATION Planning & Development 600 3.09%2,328$ Police 7,400 38.10%28,708 Engineering 1,200 6.18%4,657 Building Safety 852 4.39%3,308 Public Works: Public Works Admin 258 1.33%1,002 Sewer Maintenance 258 1.33%1,002 Street Maintenance 258 1.33%1,002 Water System Maintenance 516 2.66%2,004 Lopez Water System - 0.00%- Parks Maintenance - 0.00%- Soto Sports Complex - 0.00%- Recreation & Building Maintenance: Administration 1,338 6.89%5,192 Other Programs 6,738 34.70%26,146 Other Budget Activity: Landscape Maintenance - 0.00%- Parkside Maintenance - 0.00%- Gracelane Maintenance - 0.00%- Transportation - 0.00%- Downtown Parking District - 0.00%- TOTAL DIRECT COST PROGRAMS 19,418 100.00% TOTAL INDIRECT COST ALLOCATION 75,350$ 19 Item 8.c. - Page 23 CITY OF ARROYO GRANDE COST ALLOCATION PLAN FOR FISCAL YEAR 2013-2014 Indirect Program Cost Allocation INDIRECT COST PROGRAM: Auto Shop BUDGET: $119,855 BASE OF ALLOCATION: Vehicle Maintenance Budget (w/o Fire and Building Safety vehicles) BASE OF PERCENT COST DIRECT COST PROGRAM ALLOCATION OF TOTAL ALLOCATION Planning & Development - 0.00%- Police 30,000 42.58%51,034 Engineering 2,300 3.26%3,907 Building Safety 500 0.71%851 Public Works: Public Works Admin - 0.00%- Sewer Maintenance 6,000 8.52%10,212 Street Maintenance 17,800 25.27%30,287 Water System Maintenance 7,000 9.94%11,914 Lopez Water System - 0.00%- Parks Maintenance 4,600 6.53%7,827 Soto Sports Complex 2,250 3.19%3,823 Recreation & Building Maintenance: Administration - 0.00%- Other Programs - 0.00%- Other Budget Activity: Landscape Maintenance - 0.00%- Parkside Maintenance - 0.00%- Gracelane Maintenance - 0.00%- Transportation - 0.00%- Downtown Parking District - 0.00%- TOTAL DIRECT COST PROGRAMS 70,450$ 100.00% TOTAL INDIRECT COST ALLOCATION 119,855$ 20 Item 8.c. - 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