CC 2014-07-08_ 08.b. Cost Allocation PlanMEMORANDUM
TO: CITY COUNCIL
FROM: DEBBIE MALICOAT, DIRECTOR OF ADMINISTATIVE SERVICES ~
SUBJECT: CONSIDERATION OF APPROVAL OF COST ALLOCATION PLAN
DATE: JULY 8, 2014
RECOMMENDATION:
It is recommended the City Council approve the Fiscal Year 2014-15 Cost Allocation
Plan.
IMPACT ON FINANCIAL AND PERSONNEL RESOURCES:
The Fiscal Year 2014-15 Cost Allocation Plan will provide resources to the General
Fund in the amount of approximately $681,900. This amount was included in the
adopted Fiscal Year 2014-15 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 Administrative
Services Director also reviewed and updated the Cost Allocation Plan to ensure it is as
accurate and defensible as possible.
Item 8.b. - Page 1
CITY COUNCIL
COST ALLOCATION PLAN
JULY 8, 2014
PAGE2
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
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:
1. Approve staff recommendation and approve the plan;
2. Do not approve the plan and retain current cost allocation numbers;
3. Modify and approve the plan;
4. Provide direction to staff.
ADVANTAGES:
The Cost Allocation Plan provides 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, July 3, 2014. The Agenda
and report were posted on the City's website on Thursday, July 3, 2014. No public
comments were received.
Item 8.b. - Page 2
CITY OF
ARROYO GRANDE
1;;{_ CITY OF
COST ALLOCATION PLAN
FISCAL YEAR 2014-2015
Item 8.b. - Page 3
CITY OF ARROYO GRANDE
COST ALLOCATION PLAN
TABLE OF CONTENTS
Page
Introduction
Overview-Purpose of Cost Allocation Plan ................................................................................................................... 1
Determining Direct and Indirect Costs ................................................ ~ ........................................................... · ............ ,. l
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 ·
Suinmary of Departmental Indfrect 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 S~op .......................................................................................................................... : ............................. 20
Item 8.b. - Page 4
Purpose
CITY OF ARROYO GRANDE
INTRODUCTION TO THE COST ALLOCATION PLAN
OVERVIEW·
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.
1
Item 8.b. - Page 5
CITY OF ARROYO GRANDE
Introduction to the Cost Allocation Plan
Indirect Cost Rates
Allocating Indirect Costs
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
seqQential 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.b. - Page 6
CITY OF ARROYO GRANDE
Introduction to the Cost Allocation Plan
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.
PREP ARA TI ON 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.
3
·,
Item 8.b. - Page 7
CITY OF ARROYO GRANDE
COST ALLOCATION PLAN FOR FISCAL YEAR2014-2015
Summary of Direct and Indirect Costs
DIRECT PROGRAMS COSTS INDIRECT PROGRAM COSTS
Planning & Development
Police
Engineering ,
Building Safety
Public Works:
Public Works Admin
Sewer Maintenance
Street Maintenance
Water System Maintenance
Lopez Water System
Parks Maintenance
Soto Sports Complex
Recreation:
Administration
Other Recreation Programs
Other Budget Activity:
Landscape District Maintenance
Parkside Assessment District
Gracehme Assessment District
Transportation
Downtown Parking District
TOTAL DIRECT COSTS
Overall indirect cost rate:
$ 424,866
5,536,963
291,283
251,394
379,986
302,600
634,420
2,990,305
3,254,400
500,830
165,800
275,240
556,150
7,430
20,700
13,300
20,000
3,525
15,629,192
(indirect costs divided by direct costs)
14.32%
Legislation and Policy
City Manager
Administrative Services:
$ '92,600
232,365
Accounts Payable 299,425
Payroll 149,712
Business Licensing 49,904
Administrative Services Total 499,041 -----'---
Legislative & Information Svcs:
City Clerk 276,603
Information Technology 195,069
Printing/Copying 34,100
Legislative & Information Svcs Total 505,772 -----'---
City Attorney
Non Departmental
Government Buildings
183,250
467,295
Personnel 117,550
Services/Supplies 75,350
Government Buildings Total ___ 1_9_2~,9_0_0_
Auto Shop 65,325
TOTAL INDIRECT COSTS 2,238,548
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.
4
Item 8.b. - Page 8
CITY OF ARROYO GRANDE
COST ALLOCATION PLAN FOR FISCAL YEAR 2014-2015
Schedule of Exclusions By Activity
DIRECT PROGRAM COSTS INDIRECT PROGRAM COSTS
Police:
Debt $ 133,880
Capital items 26,500 $
Parks:
Debt
Recreation:
Capital items
Transportation
Transfers
Soto Sports
Debt
Streets
Debt 54,000
Transfers 76,300
Engineering:
Capital items
Sewer Maintenance:
Capital items 2,500
Debt 21,000
Transfers 510,600
Landscape Maint:
Transfers
Grace Lane Maint:
Transfers
Parkside Maint:
Transfers
Water System:
Transfers
Lopez Admin: .
Transfers
Downtown Parking:
Transfers
TOTAL DIRECT PROGRAM COSTS $
160,380
21,000
1,200
469,700
6,000
130,300
534,100
2,200
2,600
3,800
2,651,800
259,400
3,000
4,245,480
5
City Council:
Capital items $
Administration:
Capital items
Debt
Non Departmental:
Debt 11,600
Transfers 146,000
City Manager/Sales Tax:
Debt 90,480
Transfers 1,408,900
Government Buildings:
Debt
TOTAL INDIRECT PROGRAM COSTS
TOT AL DIRECT & INDIREC'( $
SUMMARY OF EXCLUSIONS:
Capital items
Debt
Transfers
TOTAL DIRECT & INDIRECT
$
$
5,000
1,000
29,915
157,600
1,499,380
6,000
1,698,895
5,944,375
36~200
. 373,875
5,534,300
5,944,375
Item 8.b. - Page 9
CITY OF ARROYO GRANDE
6
Item 8.b. - Page 10
CITY OF ARROYO GRANDE
COST ALLOCATION PLAN FOR FISCAL YEAR 2014-2015
Legislation and Policy
City Manager
Non Departmental
Administrative Services:
Accounts Payable (60% ofBudget)
Payroll (30% ofBudget)
Administration (10% of Budget)
Legislative &Information Services
City Clerk
Printing/Copying
Information Technology
City Attorney
Government Buildings:
Personnel
Services and Supplies
Auto Shop
Bases of Allocation oflndirect Costs
7
Council Agenda Items
Total Operating Budget
Total Operating Budget
Total Operating Budget
Full Time Equivalent (FTE) Staffing
Total Operating Budget
Council Agenda Items
Total Operating Budget
Total Operating Budget
Total Operating Budget
Square Footage (w/o Fire Station)
Dept. Square Footage
Vehicle Maintenance Budget (w/o Fire & Building Vehicles)
Item 8.b. - Page 11
CITY OF ARROYO GRANDE
COST ALLOCATION PLAN FOR FISCAL YEAR2014-2015
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 50.65% $ 424,866 $ 215,192 $ 40,003 $ 12,554 $ 19,488 $ 119,493 $ 4,984 $ 12,710 $ 5,961 $
Police 13.55% 5,536,963 750,116 10,001 163,522 208,609 29,901 64,925. 165,563 73,483 34,113
Building Safety 14.54% 251,394 36,542 370 7,431 8,124 1,106 2,950 7,523 8,468 568
Public Works:
Engineering 36.81% 291,283 107,223 15,186 8,585 11,483 45,335 3,408 8,692 11,921 2,613
Public Works Admin 13.11% 379,986 49,833 1,852 11,215 12,860 5,532 4,453 11,355 2,566
Sewer Maintenance 15.28% 302,600 46,240 2,593 8,954 11,762 7,745 3,555 9,066 2,566
Street Maintenance 17.66% 634,420 112,008 5,926 18,738 20,426 17,703 7,440 18,972 2,566 20,238
Water System Maint. 10.53% 2,990,305 314,903 4,445 88,291 79,298. 13,277 35,056 .89,394 5,143
Lopez Water System 9.44% 3,254,400 307,219 741 96,091 72,730 2,213 38,153 97,291
Total Public Works 11.94% 7,852,994 937,427 30,743 231,875 208,559 91,805 92,065 234,769 24,761 22,851
Parks Maintenance 14.41% 500,830 72,146 3,334 14,769 18,035 9,958 5,864 14,953 5,233
Recreation:
Administration 21.62% 275,240 59,493 4,074 8,123 10,385 12,171 3,225 8,224 13,291
Other Rec. Programs 22.51% 556,150 125,165 1,482 4,892 8,688 4,426 1,942 4,953 2,561
Soto Sports Complex 17.46% 165,800 28,944 741 16,431 15,685 2,213 6,524 16;636 66,936
Total Recreation 21.42% 997,190 213,603 6,297 29,446 34,758 18,809 11,691 29,813 80,227 2,561
Other Activity:
Landscape Maintenance 29.71% 7,430 2,208 370 . 231. 175 1,106 92 234
Parkside Assessment District 16.31% 20,700 3,377 370 600 454 1,106 238 607
Gracelane Maint. 20.99% 13,300 2,792 370 415 314 '· 1,106 165 421
Transportation 16.88% 20,000 3,377 370 600 454 1,106 238 607
·Downtown Parking 50.19% 3,525 1,769 370 92 70 1,106 37 93
TOTALS 14.32% $15,629,192 $ 2,238,547 $ 92,600 $ 461,534 $ 499,041 $ 276,603 $ 183,250 $ 467,295 $ 192,900 $ 65,325
8
Item 8.b. - Page 12
CITY OF ARROYO GRANDE
COST ALLOCATION PLAN FOR FISCAL YEAR 2014-2015
Summary oflndirect Cost Allocations
INDIRECT PROGRAM COST ALLOCATIONS
Legis. & Admin-Administrative .Services 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 .. $ 40,003 $ 12,554 $ 8,144 $ 9,986 $ 1,357 $119,493 $ 4,984 $ 12,710 $ 3,632 $ 2,328 $ $ 215,192
Police 10,001 163,522 106,086 84,842 17,681 29,901 64,925 165,563 44,775 28,708 34,113 750,116
Building Safety 370 7,431 4,821 2,500 803 1,106 2,950 7,523 5,160 3,308 568 36,542
Public Works:
Engineering 15,186 8,585 5,569 4,985 928 45,335 3,408 8,692 7,265 4,657 2,613 107,223
Public Works Admin 1,852 11,215 7,276 4,372 1,213 5,532 4,453 11,355 1,563 1,002 49,833
Sewer Maintenance 2,593 8,954 5,809 4,985 968 7,745 3,555 9,066 1,563 1,002 46,240
Street Maintenance 5,926 18,738 12,157 6,243 2,026 17,703 7,440 18,972 1,563. 1,002 20,238 112,008
Water System Maint. 4,445 88,291 57,280 12,471 9,547 13,277 35,056 89,394 3,139 2,004 314,903
Lopez Water System 741 96,091 62,340. 10,390 2,213 38,153 97,291 307,219
Total Public Works 30,743 231,875 150,431 33,056 25,072 91,805 92,065 234,769 15,093 9,667 22,851 937,427
Parks Maintenance 3,334 14,769 9,582 6,857 1,597 9,958 5,864 14,953 5,233 72,146
Recreation:
Administration 4,074 8,123 5,270 4,237 878 12,171 3,225 8,224 8,099 5,192 59,493
Other Rec. Programs 741 16,431 10,660 3,249 1,777 2,213 6,524 16,636 40,790 26,146 125,165
Soto Sports Complex 1,482 4,892 3,174 4,985 529 4,426 1,942 4,953 2,561 28,944
Total Recreation 6,297 29,446 19,103 12,471 3,184 18,809 11,691 29,813 48,889 31,338 2,561 213,603
Other Budget Activity:
Landscape Maint. 370 231 150 25 1,106 92 234 2,208
Parkside Maint. 370 600 389 65 1,106 238 607 3,377
Gracelane Maint. 370 415 269 45 1,106 165 421 2,792
Transportation 370 600 389 65 1,106 238 607 3,377
Downtown Parking 370 92 60 10 1,106 37 93 1,769
TOTALS $ 92,600 $ 461,534 $ 299,425 $ 149,712 $ 49,904 $276,603 $ 183,250 $467,295 $117,550 $ 75,350 $ 65,325 $2,238,547
9 Item 8.b. - Page 13
CITY OF ARROYO GRANDE
COST ALLOCATIONPLANFORFISCAL YEAR2014-2015
Indirect Program Cost Allocation
INDIRECT COST PROGRAM:
BUDGET:
BASE OF ALLOCATION:
DIRECT COST PROGRAM
Planning & Development
Police
Engineering
Building Safety
Public Works:
Public Works Admin
Sewer Maintenance
Street Maintenance
Water System Maintenance
Lopez Water System
Parks Maintenance
Soto Sports Complex
Recreation & Building Maintenance:
Administr:ation
Other Programs
Other Budget Activity:
Landscape Maintenance
Parkside Maintenance
Gracelane Maintenance
Transportation
Downtown Parking District
TOTAL DIRECT COST PROGRAMS
Legislation & Policy
$92,600
Council Agenda Items
TOTAL INDIRECT COST ALLOCATION
10
BASE OF PERCENT
ALLOCATION OF TOTAL
108 '43.20%
27 10.80%
41 16.40%
1 0.40%
5 2.00%
7 2.80%
16 6.40%
12 4.80%
2 0.80%
9 3.60%
4 1.60%
11 4.40%
2 0.80%
1 0.40%
1 0.40%
1 0.40%
1 0.40%
1 0.40%
250 100.00%
COST
ALLOCATION
$ 40,003
10,001
15,186
370
1,852
2,593
5,926
4,445
741
3,334
1,482
4,074
741
370
370
370
370
370
$ 92,600
Item 8.b. - Page 14
. CITY OF ARROYO GRANDE
COST ALLOCATION PLAN FOR FISCAL YEAR 2014-2015
Indirect Program Cost Allocation
INDIRECT COST PROGRAM:
BUDGET:
BASE OF ALLOCATION:
DIRECT COST PROGRAM
Planning & Development
Police
Engineering
Building Safety
Public Works:
Public Works Admin
Sewer Maintenance
Street Maintenance
Water System Maintenance
Lopez Water System
Parks Maintenance
Soto Sports Complex
Recreation & Building Maintenance:
Administration
Other Programs
Other Budget Activity:
Landscape Maintenance
Parkside Maintenance
Gracelane Maintenance
Transportation
Downtown Parking District
TOTAL DIRECT COST PROGRAMS
-
Administration
$461,534
Total Operating Budget
TOTAL INDIRECT COST ALLOCATION
11
BASE OF PERCENT
ALLOCATION OF TOTAL
$ 424,866 2.72%
5,536,963 35.43%
291,283 1.86%
251,394 1.61%
379,986 2.43%
302,600 1.94%
634,420 4.06%
2,990,305 19.13%
3,254,400 20.82%
500,830 3.20%
165,800 1.06%
275,240 1.76%
556,150 3.56%
7,430 0.05%
20,700 0.13%
13,300 0.09%
20,000 0.13%
3,525 0.02%
$ 15,629,192 100.00%
COST
ALLOCATION
$ 12,554
163,522
8,585
7,431
. 11,215
8,954
18,738
88,291
96,091
14,769
4,892
8,123
16,431
231
. 600
415
600
92
$ 461,534
Item 8.b. - Page 15
CITY OF ARROYO GRANDE
COST ALLOCATIONPLANFORFISCAL YEAR2014-2015
Indirect Program Cost Allocation
INDIRECT COST PROGRAM:
BUDGET:
BASE OF ALLOCATION:
DIRECT COST PROGRAM
Planning & Development
Police
Engineering
Building Safety
Public Works:
Public Works Aclmin
Sewer Maintenance
Street Maintenance
Water System Maintenance
Lopez Water System
Parks Maintenance
Soto Sports Complex
Recreation & Building Maintenance:
Administration
Other Programs
Other Budget Activity:
Landscape Maintenance
Parkside Maintenance
Gracelane Maintenance
Transportation
Downtown Parking District
Administrative Services-Accounts Payable
$299,425
Total Operatillg Budget
BASE OF
ALLOCATION
$ 424,866
5,536,963
291,283
251,394
379,986
302,600
634,420
2,990,305
3,254,400
500,830
165,800
275,240
556,150
7,430
20,700
13,300
20,000
3,525
TOTAL DIRECT COST PROGRAMS
TOTAL INDIRECT COST ALLOCATION
$ 15,629,192
12
PERCENT
OF TOTAL
2.72%
35.43%
1.86%
1.61%
2.43%
1.94%
4.06%
19.13%
20.82%
3.20%
1.06%
1.76%
3.56%
0.05%
0.13%
0.09%
0.13%
0.02%
100.00%
COST
ALLOCATION
$ 8,144
$
106,086
5,569
4,821
7,276
5,809
12,157
. 57,280
62,340
9,582
3,174
5,270
10,660
150
389
269
389
60
299,425
Item 8.b. - Page 16
CITY OF ARROYO GRANDE
COST ALLOCATION PLAN FOR FISCAL YEAR 2014-2015
Indirect Program Cost Allocation
INDIRECT COST PROGRAM:
BUDGET:
BASE OF ALLOCATION:
DIRECT COST PROGRAM
Planning Division
Police
Engineering Division
Building Safety Division
Public Works:
Public Works Admin
Sewer Maintenance
Street Maintenance
Water System Maintenance
Lopez Water System
Parks Maintenance
Soto Sports Complex
Recreation & Building Maintenance:
Administration
Other Programs
. TOTAL DIRECT COST PROGRAMS
Administrative Services-Payroll
$149,712
Full Time Equivalent (FTE) Employees
BASE OF
ALLOCATION
4.00
34.00
2.00
1.00
1.75
2.00
2.50
5.00
2.75
2.00
1.70
1.30
60.00
TOTAL INDIRECT COST ALLOCATION
13
PERCENT
OF TOTAL
6.67%
56.67%
3.33%
1.67%
2.92%
3.33%
4.17%
8.33%
0.00%
4.58%
3.33%
2.83%
2.17%
100.00%
COST
ALLOCATION
$ 9,986
84,842
4,985
2,500
4,372
4,985
6,243
12,471
6,857
4,985
4,237
3,249
$ 149,712
Item 8.b. - Page 17
CITY OF ARROYO GRANDE
COST ALLOCATION PLAN FOR FISCAL YEAR 2014-2015
Indirect Program Cost Allocation
INDIRECT COST PROGRAM:
BUDGET:
BASE OF ALLOCATION:
DIRECT COST PROGRAM
Planning & Development
Police
Engineering
Building Safety
Public Works:
Public Works Admin
Sewer Maintenance
Street Maintenance
Water System Maintenance
Lopez Water System
Parks Maintenance
Soto Sports Complex
Recreation & Building Maintenance:
Administration ·
Other Programs
Other Budget Activity:
Landscape Maintenance
Parkside Maintenance
Gracelane Maintenance
Transportation
Downtown Parking District
TOTAL DIRECT COST PROGRAMS
Administrative Services-Administration
$49,904
Total Operating Budget
BASE OF
ALLOCATION
$ 424,866
5,536,963
291,283
251,394
379,986
302,600
634,420
2,990,305
3,254,400
500,830
165,800
275,240
556,150
7,430
20,700
13,300
20,000
3,525
$ 15,629,192
TOTAL INDIRECT COST ALLOCATION
14
PERCENT
OF TOTAL
2.72%
35.43%
1.86%
. 1.61%
2.43%
1.94%
4.06%
19.13%
20.82%
3.20%
1.06%
1.76%
3.56%
0.05%
0.13%
0.09%
0.13%
0.02%
100.00%
COST
ALLOCATION
$ 1,357
17,681
928
803
1,213
968
2,026
9,547
10,390
1,597
529
878
1,777
25
65
45
65
10
$ 49,904
Item 8.b. - Page 18
CITY OF ARROYO GRANDE
COST ALLOCATION PLAN FOR FISCAL YEAR 2014-2015
Indirect Program Cost Allocation
INDIRECT COST PROGRAM:
BUDGET:
BASE OF ALLOCATION:
DIRECT COST PROGRAM
Planning & Development
Police
Engineering
Building Safety
Public Works:
Public Works Admin
Sewer Maintenance
Street Maintenance
Water System Maintenance
Lopez Water System
Parks Maintenance
Soto Sports Complex
Recreation & Building Maintenance:
Administration
Other Programs
Other Budget Activity:
Landscape Maintenance
Parkside Maintenance
Gracelane Maintenance
Transportation
Downtown Parking District
TOTAL DIRECT COST PROGRAMS
City Clerk
$276,603
Council Agenda Items
TOTAL INDIRECT COST ALLOCATION
15
BASE OF PERCENT
ALLOCATION OF TOTAL
108 43.20%
27 10.81%
41 16.39%
1 0.40%
5 2.00%
7 2.80%
16 6.40%
12 4.80%
2 0.80%
9 3.60%
4 1.60%
11 4.40%
2 0.80%
1 0.40%
1 0.40%
1 0.40%
1 OAO%
1 0.40%
250 100.00%
COST
ALLOCATION
$ 119,493
29,901
45,335
1,106
5,532
7,745
17,703
13,277
2,213
9,958
4,426
12,171
2,213
. 1,106
1,106
1,106
1,106
1,106
$ 276,603
Item 8.b. - Page 19
CITY OF ARROYO GRANDE
COST ALLOCATION PLAN FOR FISCAL YEAR 2014-2015
Indirect Program Cost Allocation
INDIRECT COST PROGRAM:
BUDGET:
BASE OF ALLOCATION:
DIRECT COST PROGRAM
Planning & Development
Police
Engineering
Building Safety
Public Works:
Public Works Admin
Sewer Maintenance
Street Maintenance
Water System Maintenance
Lopez Water System
Parks Maintenance
Soto Sports Complex
Recreation & Building Maintenance:
Administration
Other Programs
Other Budget Activity:
Landscape Maintenance
Parkside Maintenance
Gracelane Maintenance
Transportation
Downtown Parking District
TOTAL DIRECT COST PROGRAMS
City Attorney
$183,250
Total Operating Budget
TOT AL INDIRECT COST ALLOCATION
16
BASE OF
ALLOCATION
$ 424,866
5,536,963
291,283
251,394
379,986
302,600
634,420
2,990,305
3,254,400
500,830
165,800
275,240
556,150
7,430
20,700
13,300
20,000
3,525
$ 15,629,192
PERCENT
OF TOTAL
2.72%
35.43%
1.86%
1.61%
2.43%
1.94%
4.06%
19.13%
20.82%
3.20%
1.06%
1.76%
3.56%
0.05%
0.13%
0.09%
0.13%
0.02%
100.00%
COST
ALLOCATION
$ 4,984
64,925
3,408
2,950
4,453
3,555
7,440
35,056
38,153
5,864
1,942
3,225
6,524
92
238
165
238
37
$ 183,250
Item 8.b. - Page 20
CITY OF ARROYO GRANDE
COST ALLOCATION PLAN FOR FISCAL YEAR 2014-2015
Indirect Program Cost Allocation
INDIRECT COST PROGRAM:
BUDGET:
BASE OF ALLOCATION:
DIRECT COST PROGRAM
Planning & Development
Police
Engineering
Building Safety
Public Works:
Public Works Admin
Sewer Maintenance
Street Maintenance
Water System Maintenance
Lopez Water System
Parks Maintenance
Soto Sports Complex
Recreation & Building Maintenance:
Administration
Other Programs
Other Budget Activity:
Landscape Maintenance
Parkside Maintenance
Gracelane Maintenance
Transportation
Downtown Parking District
TOTAL DIRECT COST PROGRAMS
Non Departmental
$467,295
Total Operating Budget
TOTAL INDIRECT COST ALLOCATION
17
BASE OF
ALLOCATION
$ 424,866
5,536,963
291,283
251,394
379,986
302,600
634,420
2,990,305
3,254,400
500,830
165,800
275,240
. 556,150
7,430
20,700
13,300
20,000
3,525
$ 15,629,192
PERCENT
OF TOTAL
2.72%
35.43%
1.86%
1.61%
2.43%
1.94%
4.06%
19.13%
20.82%
3.20%
1.06%
1.76%
3.56%
0.05%
0.13%
0.09%
0.13%
0.02%
100.00%
COST
ALLOCATION
$ 12,710
165,563
8,692
7,523
11,355
9,066
18,972.
89,394
97,291
14,953
4,953
8,224
16,636
234
607
421
607
93
$ 467,295
Item 8.b. - Page 21
CITY OF ARROYO GRANDE
COST ALLOCATION PLAN FOR FISCAL YEAR2014-2015
Indirect Program Cost Allocation
INDIRECT COST PROGRAM:
BUDGET:
BASE OF ALLOCATION:
DIRECT COST PROGRAM
Planning & Development
Police
Engineering
Building Safety
Public Works:
Public Works Admin
Sewer Maintenance
Street Maintenance
Water System Maintenance
Lopez Water System
Parks Maintenance
Soto Sports Complex
Recreation & Building Maintenance:
Administration
Other Programs
Other Budget Activity:
Landscape Maintenance
Parkside Maintenance
Gracelane Maintenance
Transportation
Downtown Parking District
TOTAL DIRECT COST PROGRAMS
Government Building Maintenance Personnel
$117,550
Department Square Footage
BASE OF
ALLOCATION
600
7,400
1,200
852
258
258
258
516
1,338
6,738
19,418
TOTAL INDIRECT COST ALLOCATION
18
PERCENT
OF TOTAL
3.09%
38.09%
6.18%
4.39%
1.33%
1.33%
1.33%
2.67%
0.00%
0.00%
0.00%
6.89%
34.70%
0.00%
0.00%
0.00%
0.00%
0.00%
100.00%
COST
ALLOCATION
$ 3,632
$
44,775
7,265'
5,160
1,563
1,563
1,563
3,139
8,099
40,790
117,550
Item 8.b. - Page 22
CITY OF ARROYO GRANDE
COST ALLOCATION PLAN·FOR FISCAL YEAR 2014-2015
Indirect Program Cost Allocation
INDIRECT COST PROGRAM:
BUDGET:
BASE OF ALLOCATION:
DIRECT COST PROGRAM .
Planning & Development
Police
Engineering
Building Safety
Public Works:
Public Works Admin
Sewer Maintenance
Street Maintenance
Water System Maintenance
Lopez Water System
Parks Maintenance
Soto Sports Complex
Recreation & Building Maintenance:
Administration
Other Programs
Other Budget Activity:
Landscape Maintenance
Parkside Maintenance
Gracelane Maintenance
Transportation
Downtown Parking District
TOTAL DIRECT COST PROGRAMS
Government Building Maintenance Supplies
$75,350
Department Square Footage
BASE OF
ALLOCATION
600
7,400
1,200
852
258
258
258
516
1,338
6,738
19,418
TOTAL INDIRECT COST ALLOCATION
19
PERCENT
OF TOTAL
3.09%
38.10%
6.18%
4.39%
l.33%
1.33%
1.33%
2.66%
0.00%
0.00%
0.00%
6.89%
34.70%
0.00%
0.00%
0.00%
0.00%
0.00%
100.00%
COST
ALLOCATION
$ 2,328
$
28,708
4,657
3,308
1,002
1,002
1,002
2,004
5,192
26,146
75,350
Item 8.b. - Page 23
CITY OF ARROYO GRANDE
COST ALLOCATION PLAN FOR FISCAL YEAR 2014-2015
Indirect Program Cost Allocation
INDIRECT COST PROGRAM:
BUDGET:
BASE OF ALLOCATION:
DIRECT COST PROGRAM
Planning & Development
Police·
Engineering
Building Safety
Public Works:
Public Works Admin
Sewer Maintenance
Street Maintenance
Water System Maintenance
Lopez Water System
Parks Maintenance
Soto Sports Complex
Recreation & Building Maintenance:
Administration
Other Programs
Other Budget Activity:
Landscape Maintenance
Parkside Maintenance
Gracelane Maintenance
Transportation
Downtown Parking District
TOTAL DIRECT COST PROGRAMS
Auto Shop
$65,325
Vehicle Maintenance Budget (w/o Fire and Building Safety vehicles)
BASE OF
ALLOCATION
$
30,000
2,300
500
17,800
4,600-
2,250
57,450
PERCENT
OF TOTAL
0.00%
52.22%
4.00%
0.87%
0.00%
0.00%
30.98%
0.00%
0.00%
8.01%
3.92%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
100.00%
TOTAL INDIRECT COST ALLOCATION
COST
ALLOCATION
$
34,113
2,613
568
20,238
5,233
2,561
-·
65,325
Water Systems Maintenance and Sewer Maintenance are excluded from this calculation. A direct allocation of costs for these
programs is calculated outside of this plan.
20
Item 8.b. - Page 24