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$
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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$
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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$
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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$
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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$
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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$
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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. - Page 24