CC 2018-02-27_09c Cost Allocation Plan
MEMORANDUM
TO: CITY COUNCIL
FROM: DEBBIE MALICOAT, DIRECTOR OF ADMINISTATIVE SERVICES
SUBJECT: CONSIDERATION OF APPROVAL OF COST ALLOCATION PLAN
DATE: FEBRUARY 27, 2018
SUMMARY OF ACTION:
Approving the Cost Allocation Plan and amending the budget to reflect updated
calculations of costs will allow for more accurate accounting of the total cost of providing
city services.
IMPACT ON FINANCIAL AND PERSONNEL RESOURCES:
The General Fund receives resources from other funds to cover the cost of services
provided by the General Fund. The original budget estimated $866,000 for these
transfers; the updated Cost Allocation Plan calculates the amount at $1,074,600, an
increase of $208,600. The updated transfers will be reflected in the Mid-Year Budget
update.
RECOMMENDATION:
It is recommended the City Council approve the Fiscal Year 2017-18 Cost Allocation
Plan and amend the budget as appropriate.
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, and
building maintenance. Though indirect costs are not readily identifiable with direct
operating programs, they can be allocated based on a rational, logical methodology.
Item 9.c. - Page 1
CITY COUNCIL
CONSIDERATION OF APPROVAL OF COST ALLOCATION PLAN
FEBRUARY 27, 2018
PAGE 2
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 adopted 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 the more
current the numbers, the better the allocation will reflect actual costs, and technology
allows for timely updating. More frequent updating is not recommended as little
additional value would be gained for the staff resources that would be expended.
The allocations in the current Plan are higher than previously projected due to higher
costs in several programs, including:
One-time costs for additional network storage in the Information Technology
budget
Higher liability and property insurance premiums than originally projected
New costs for compliance with Governmental Accounting Standards Board
(GASB) pronouncements related to financial reporting
ALTERNATIVES:
The following alternatives are provided for the Council’s consideration:
- Approve the plan and amend the budget;
- Do not approve the plan and retain current cost allocation numbers;
- Modify and approve the plan;
- Provide direction to staff.
ADVANTAGES:
The Cost Allocation Plan provides revenue to the General Fund to reimburse costs for
services from departments funded by the General Fund, but provided to fee based
operations. Updating the Plan provides for the most current calculation of costs and,
therefore the most current appropriate reimbursement amounts.
DISADVANTAGES:
Reimbursements to the General Fund negatively impact other funds, particularly the
Water and Sewer Funds. However, the reimbursements are necessary in order to
account for the full cost of providing services.
ENVIRONMENTAL REVIEW:
No environmental review is required for this item.
Item 9.c. - Page 2
CITY COUNCIL
CONSIDERATION OF APPROVAL OF COST ALLOCATION PLAN
FEBRUARY 27, 2018
PAGE 3
PUBLIC NOTIFICATION AND COMMENTS:
The Agenda was posted at City Hall and on the City’s website in accordance with
Government Code Section 54954.2.
Attachments:
1. Cost Allocation Plan
Item 9.c. - Page 3
CITY OF
ARROYO GRANDE
COST ALLOCATION PLAN
FISCAL YEAR 2017-2018
ATTACHMENT 1
Item 9.c. - Page 4
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 9.c. - Page 5
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 9.c. - Page 6
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 2017-2018 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 9.c. - Page 7
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, Sewer Enterprise and Other Utility Fund Accounting
A complete costing of Arroyo Grande’s water enterprise and sewer enterprise 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 9.c. - Page 8
CITY OF ARROYO GRANDE
COST ALLOCATION PLAN FOR FISCAL YEAR 2017-2018
Summary of Direct and Indirect Costs
Planning & Development 590,800$ Legislation and Policy 95,900$
Police 6,499,300
Engineering 443,200 City Manager 596,200
Building Safety 314,100
Administrative Services:
Public Works: Accounts Payable 312,060
Public Works Admin 569,200 Payroll 156,030
Sewer Maintenance 375,500 Business Licensing 52,010
Street Maintenance 717,700 Administrative Services Total 520,100
Water System Maintenance 4,840,000
Lopez Water System - Legislative & Information Svcs:
Parks Maintenance 463,200 City Clerk 295,000
Soto Sports Complex 214,500 Information Technology 476,800
Printing/Copying 34,600
Recreation:Legislative & Information Svcs Total 806,400
Administration 428,700
Other Recreation Programs 604,000 City Attorney 283,200
Other Budget Activity:Non Departmental 980,400
Landscape District Maintenance 5,700
Parkside Assessment District 30,000 Government Buildings
Gracelane Assessment District 13,300 Personnel 136,800
Transportation 20,000 Services/Supplies 80,500
Downtown Parking District 4,325 Government Buildings Total 217,300
Auto Shop 144,400
TOTAL DIRECT COSTS 16,133,525 TOTAL INDIRECT COSTS 3,643,900
Overall indirect cost rate:
(indirect costs divided by direct costs)
22.59%
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 9.c. - Page 9
CITY OF ARROYO GRANDE
COST ALLOCATION PLAN FOR FISCAL YEAR 2017-2018
Schedule of Exclusions By Activity
Police:City Council:
Debt 133,900$ Capital items 1,000$
Capital items 24,500 158,400$
Parks:Administration:
Debt 19,100 Capital items 1,697,200
Recreation:Debt 30,000
Capital items 1,200 Non Departmental:
Transportation Debt 11,600
Transfers 115,700 Transfers 45,000
Soto Sports 56,600
Debt 6,400 City Manager/Sales Tax:
Streets Debt 20,000
Debt 49,600 Transfers 242,000
Transfers 92,100 141,700 262,000
Engineering:
Capital items - Government Buildings:
Sewer Maintenance: Debt 5,300
Capital items 109,600
Debt 20,900 TOTAL INDIRECT PROGRAM COSTS 2,052,100
Transfers 75,200 205,700
Landscape Maint:TOTAL DIRECT & INDIRECT 3,569,600$
Transfers 2,400
Grace Lane Maint:
Transfers 3,500
Parkside Maint:
Transfers 4,600
Water System:
Capital items 9,600 Capital items 1,843,100$
Transfers 824,800 Debt 318,600
Debt 21,800 856,200 Transfers 1,407,900
Downtown Parking:
Transfers 2,600 TOTAL DIRECT & INDIRECT 3,569,600$
TOTAL DIRECT PROGRAM COSTS 1,517,500$
SUMMARY OF EXCLUSIONS:
DIRECT PROGRAM COSTS INDIRECT PROGRAM COSTS
5
Item 9.c. - Page 10
CITY OF ARROYO GRANDE
COST ALLOCATION PLAN FOR FISCAL YEAR 2017-2018
Schedule of Exclusions by Type
INDIRECT PROGRAM COSTS
Capital items:Capital items:
Police 24,500$ City Council 1,000$
Engineering - Administration 1,697,200
Recreation 1,200
Water 9,600
Sewer Maintenance 109,600 Total Capital Items Exclusion 1,698,200$
Total Equipment Exclusion 144,900$ Debt:
Government Buildings 5,300
Debt: Non Departmental 11,600
Police 133,900 IT 30,000
Parks 19,100 City Manager/Sales Tax 20,000
Soto Sports Complex 6,400 Total Debt Exclusion 66,900
Water 21,800
Sewer Maintenance 20,900 Transfers:
Streets 49,600 Non Departmental 45,000
City Manager/Sales Tax 242,000
Total Debt Exclusion 251,700
Total Transfer Exclusion:287,000
Transfers:
Lopez - TOTAL INDIRECT PROGRAM COSTS 2,052,100
Landscape 2,400
Grace Lane 3,500
Parkside 4,600 TOTAL DIRECT & INDIRECT 3,569,600$
Streets 92,100
Transportation 115,700
Downtown Parking 2,600 SUMMARY OF EXCLUSIONS:
Water 824,800
Sewer Maintenance 75,200 Capital items 1,843,100$
Debt 318,600
Total Transfer Exclusion:1,120,900 Transfers 1,407,900
TOTAL DIRECT PROGRAM COSTS 1,517,500$ TOTAL EXCLUSIONS 3,569,600$
DIRECT PROGRAM COSTS
6
Item 9.c. - Page 11
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
Information Technology 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
CITY OF ARROYO GRANDE
COST ALLOCATION PLAN FOR FISCAL YEAR 2017-2018
Bases of Allocation of Indirect Costs
7
Item 9.c. - Page 12
CITY OF ARROYO GRANDE
COST ALLOCATION PLAN FOR FISCAL YEAR 2017-2018
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 39.38%590,800$ 232,641$ 28,127$ 40,538$ 24,294$ 86,524$ 10,365$ 35,883$ 6,910$ -$
Police 20.75%6,499,300 1,348,693 9,360 446,031 209,101 28,792 114,045 394,807 80,553 66,005
Building Safety 22.94%314,100 72,069 2,340 21,598 10,813 7,198 5,522 19,118 4,455 1,025
Public Works:
Engineering 22.64%443,200 100,321 1,563 30,459 17,080 4,809 7,788 26,961 6,910 4,751
Public Works Admin 23.72%569,200 135,024 6,243 39,098 18,438 19,205 9,997 34,608 6,410 1,025
Sewer Maintenance 25.05%375,500 94,065 3,117 25,807 13,507 9,588 6,599 22,843 6,410 6,195
Street Maintenance 31.51%717,700 226,168 13,263 49,288 23,457 40,799 12,602 43,628 6,410 36,721
Water System Maint.19.81%4,840,000 958,872 24,186 332,280 121,688 74,399 84,960 294,120 12,799 14,440
Total Public Works 21.80%6,945,600 1,514,449 48,372 476,933 194,169 148,798 121,946 422,160 38,940 63,132
Parks Maintenance 24.11%463,200 111,662 3,117 31,788 21,418 9,588 8,128 28,137 - 9,487
Recreation:
Administration 24.49%428,700 104,979 2,340 29,462 18,047 7,198 7,533 26,079 14,320 -
Other Rec. Programs 31.93%604,000 192,833 - 41,424 32,028 - 10,592 36,667 72,122 -
Soto Sports Complex 20.91%214,500 44,843 - 14,731 8,556 - 3,767 13,039 - 4,751
Total Recreation 27.47%1,247,200 342,655 2,340 85,617 58,631 7,198 21,891 75,785 86,442 4,751
Other Activity:
Landscape Maintenance 35.65%5,700 2,032 230 443 146 708 113 392 - -
Parkside Assessment District 20.45%30,000 6,135 230 2,104 692 708 538 1,863 - -
Gracelane Maint.23.51%13,300 3,126 230 886 291 708 227 784 - -
Transportation 32.24%20,000 6,449 777 1,329 437 2,390 340 1,176 - -
Downtown Parking 92.18%4,325 3,987 777 332 109 2,390 85 294 - -
TOTALS 22.59%16,133,525$ 3,643,900$ 95,900$ 1,107,600$ 520,100$ 295,000$ 283,200$ 980,400$ 217,300$ 144,400$
8
Item 9.c. - Page 13
CITY OF ARROYO GRANDE
COST ALLOCATION PLAN FOR FISCAL YEAR 2017-2018
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.28,127$ 40,538$ 11,421$ 10,969$ 1,904$ 86,524$ 10,365$ 35,883$ 4,350$ 2,560$ -$ 232,641$
Police 9,360 446,031 125,667 62,490 20,944 28,792 114,045 394,807 50,712 29,841 66,005 1,348,693
Building Safety 2,340 21,598 6,085 3,714 1,014 7,198 5,522 19,118 2,804 1,650 1,025 72,069
Public Works:
Engineering 1,563 30,459 8,582 7,068 1,430 4,809 7,788 26,961 4,350 2,560 4,751 100,321
Public Works Admin 6,243 39,098 11,016 5,586 1,836 19,205 9,997 34,608 4,036 2,375 1,025 135,024
Sewer Maintenance 3,117 25,807 7,271 5,024 1,212 9,588 6,599 22,843 4,036 2,375 6,195 94,065
Street Maintenance 13,263 49,288 13,887 7,255 2,314 40,799 12,602 43,628 4,036 2,375 36,721 226,168
Water System Maint.24,186 332,280 93,618 12,467 15,603 74,399 84,960 294,120 8,058 4,741 14,440 958,872
Total Public Works 48,372 476,933 134,373 37,400 22,396 148,798 121,946 422,160 24,515 14,426 63,132 1,514,449
Parks Maintenance 3,117 31,788 8,956 10,969 1,493 9,588 8,128 28,137 - - 9,487 111,662
Recreation:
Administration 2,340 29,462 8,301 8,363 1,383 7,198 7,533 26,079 9,015 5,305 - 104,979
Other Rec. Programs - 41,424 11,671 18,412 1,945 - 10,592 36,667 45,404 26,718 - 192,833
Soto Sports Complex - 14,731 4,150 3,714 692 - 3,767 13,039 - - 4,751 44,843
Total Recreation 2,340 85,617 24,122 30,488 4,020 7,198 21,891 75,785 54,419 32,023 4,751 342,655
Other Budget Activity:
Landscape Maint.230 443 125 - 21 708 113 392 - - - 2,032
Parkside Maint.230 2,104 593 - 99 708 538 1,863 - - - 6,135
Gracelane Maint.230 886 250 - 42 708 227 784 - - - 3,126
Transportation 777 1,329 374 - 62 2,390 340 1,176 - - - 6,449
Downtown Parking 777 332 94 - 16 2,390 85 294 - - - 3,987
TOTALS 95,900$ 1,107,600$ 312,060$ 156,030$ 52,010$ 295,000$ 283,200$ 980,400$ 136,800$ 80,500$ 144,400$ 3,643,900$
Administrative Services
9 Item 9.c. - Page 14
CITY OF ARROYO GRANDE
COST ALLOCATION PLAN FOR FISCAL YEAR 2017-2018
Indirect Program Cost Allocation
INDIRECT COST PROGRAM: Legislation & Policy
BUDGET: $95,900
BASE OF ALLOCATION: Council Agenda Items
BASE OF PERCENT COST
DIRECT COST PROGRAM ALLOCATION OF TOTAL ALLOCATION
Planning & Development 36 29.33%28,127$
Police 12 9.76%9,360
Engineering 2 1.63%1,563
Building Safety 3 2.44%2,340
Public Works:
Public Works Admin 8 6.51%6,243
Sewer Maintenance 4 3.25%3,117
Street Maintenance 17 13.83%13,263
Water System Maintenance 31 25.22%24,186
Parks Maintenance 4 3.25%3,117
Soto Sports Complex 0 0.00%-
Recreation:
Administration 3 2.44%2,340
Other Programs 0 0.00%-
Other Budget Activity:
Landscape Maintenance 0.3 0.24%230
Parkside Maintenance 0.3 0.24%230
Gracelane Maintenance 0.3 0.24%230
Transportation 1 0.81%777
Downtown Parking District 1 0.81%777
TOTAL DIRECT COST PROGRAMS 123 100.00%
TOTAL INDIRECT COST ALLOCATION 95,900$
10
Item 9.c. - Page 15
CITY OF ARROYO GRANDE
COST ALLOCATION PLAN FOR FISCAL YEAR 2017-2018
Indirect Program Cost Allocation
INDIRECT COST PROGRAM: Administration
BUDGET: $1,107,600
BASE OF ALLOCATION: Total Operating Budget
BASE OF PERCENT COST
DIRECT COST PROGRAM ALLOCATION OF TOTAL ALLOCATION
Planning & Development 590,800$ 3.66%40,538$
Police 6,499,300 40.27%446,031
Engineering 443,200 2.75%30,459
Building Safety 314,100 1.95%21,598
Public Works:
Public Works Admin 569,200 3.53%39,098
Sewer Maintenance 375,500 2.33%25,807
Street Maintenance 717,700 4.45%49,288
Water System Maintenance 4,840,000 30.00%332,280
Parks Maintenance 463,200 2.87%31,788
Soto Sports Complex 214,500 1.33%14,731
Recreation:
Administration 428,700 2.66%29,462
Other Programs 604,000 3.74%41,424
Other Budget Activity:
Landscape Maintenance 5,700 0.04%443
Parkside Maintenance 30,000 0.19%2,104
Gracelane Maintenance 13,300 0.08%886
Transportation 20,000 0.12%1,329
Downtown Parking District 4,325 0.03%332
TOTAL DIRECT COST PROGRAMS 16,133,525$ 100.00%
TOTAL INDIRECT COST ALLOCATION 1,107,600$
11
Item 9.c. - Page 16
CITY OF ARROYO GRANDE
COST ALLOCATION PLAN FOR FISCAL YEAR 2017-2018
Indirect Program Cost Allocation
INDIRECT COST PROGRAM: Administrative Services-Accounts Payable
BUDGET: $312,060
BASE OF ALLOCATION: Total Operating Budget
BASE OF PERCENT COST
DIRECT COST PROGRAM ALLOCATION OF TOTAL ALLOCATION
Planning & Development 590,800$ 3.66%11,421$
Police 6,499,300 40.27%125,667
Engineering 443,200 2.75%8,582
Building Safety 314,100 1.95%6,085
Public Works:
Public Works Admin 569,200 3.53%11,016
Sewer Maintenance 375,500 2.33%7,271
Street Maintenance 717,700 4.45%13,887
Water System Maintenance 4,840,000 30.00%93,618
Parks Maintenance 463,200 2.87%8,956
Soto Sports Complex 214,500 1.33%4,150
Recreation:
Administration 428,700 2.66%8,301
Other Programs 604,000 3.74%11,671
Other Budget Activity:
Landscape Maintenance 5,700 0.04%125
Parkside Maintenance 30,000 0.19%593
Gracelane Maintenance 13,300 0.08%250
Transportation 20,000 0.12%374
Downtown Parking District 4,325 0.03%94
TOTAL DIRECT COST PROGRAMS 16,133,525$ 100.00%
TOTAL INDIRECT COST ALLOCATION 312,060$
12
Item 9.c. - Page 17
CITY OF ARROYO GRANDE
COST ALLOCATION PLAN FOR FISCAL YEAR 2017-2018
Indirect Program Cost Allocation
INDIRECT COST PROGRAM: Administrative Services-Payroll
BUDGET: $156,030
BASE OF ALLOCATION: Full Time Equivalent (FTE) Employees
BASE OF PERCENT COST
DIRECT COST PROGRAM ALLOCATION OF TOTAL ALLOCATION
Planning Division 5.9 7.03%10,969$
Police 33.6 40.05%62,490
Engineering Division 3.8 4.53%7,068
Building Safety Division 2.0 2.38%3,714
Public Works:
Public Works Admin 3.0 3.58%5,586
Sewer Maintenance 2.7 3.22%5,024
Street Maintenance 3.9 4.65%7,255
Water System Maintenance 6.7 7.99%12,467
Parks Maintenance 5.9 7.03%10,969
Soto Sports Complex 2.0 2.38%3,714
Recreation:
Administration 4.5 5.36%8,363
Other Programs 9.9 11.80%18,412
TOTAL DIRECT COST PROGRAMS 83.90 100.00%
TOTAL INDIRECT COST ALLOCATION 156,030$
13
Item 9.c. - Page 18
CITY OF ARROYO GRANDE
COST ALLOCATION PLAN FOR FISCAL YEAR 2017-2018
Indirect Program Cost Allocation
INDIRECT COST PROGRAM: Administrative Services- Administration
BUDGET: $52,010
BASE OF ALLOCATION: Total Operating Budget
BASE OF PERCENT COST
DIRECT COST PROGRAM ALLOCATION OF TOTAL ALLOCATION
Planning & Development 590,800$ 3.66%1,904$
Police 6,499,300 40.27%20,944
Engineering 443,200 2.75%1,430
Building Safety 314,100 1.95%1,014
Public Works:
Public Works Admin 569,200 3.53%1,836
Sewer Maintenance 375,500 2.33%1,212
Street Maintenance 717,700 4.45%2,314
Water System Maintenance 4,840,000 30.00%15,603
Parks Maintenance 463,200 2.87%1,493
Soto Sports Complex 214,500 1.33%692
Recreation:
Administration 428,700 2.66%1,383
Other Programs 604,000 3.74%1,945
Other Budget Activity:
Landscape Maintenance 5,700 0.04%21
Parkside Maintenance 30,000 0.19%99
Gracelane Maintenance 13,300 0.08%42
Transportation 20,000 0.12%62
Downtown Parking District 4,325 0.03%16
TOTAL DIRECT COST PROGRAMS 16,133,525$ 100.00%
TOTAL INDIRECT COST ALLOCATION 52,010$
14
Item 9.c. - Page 19
CITY OF ARROYO GRANDE
COST ALLOCATION PLAN FOR FISCAL YEAR 2017-2018
Indirect Program Cost Allocation
INDIRECT COST PROGRAM:City Clerk
BUDGET: $295,000
BASE OF ALLOCATION: Council Agenda Items
BASE OF PERCENT COST
DIRECT COST PROGRAM ALLOCATION OF TOTAL ALLOCATION
Planning & Development 36 29.33%86,524$
Police 12 9.76%28,792
Engineering 2 1.63%4,809
Building Safety 3 2.44%7,198
Public Works:
Public Works Admin 8 6.51%19,205
Sewer Maintenance 4 3.25%9,588
Street Maintenance 17 13.83%40,799
Water System Maintenance 31 25.22%74,399
Parks Maintenance 4 3.25%9,588
Soto Sports Complex 0 0.00%-
Recreation:
Administration 3 2.44%7,198
Other Programs 0 0.00%-
Other Budget Activity:
Landscape Maintenance 0.3 0.24%708
Parkside Maintenance 0.3 0.24%708
Gracelane Maintenance 0.3 0.24%708
Transportation 1 0.81%2,390
Downtown Parking District 1 0.81%2,390
TOTAL DIRECT COST PROGRAMS 123 100.00%
TOTAL INDIRECT COST ALLOCATION 295,000$
15
Item 9.c. - Page 20
CITY OF ARROYO GRANDE
COST ALLOCATION PLAN FOR FISCAL YEAR 2017-2018
Indirect Program Cost Allocation
INDIRECT COST PROGRAM: City Attorney
BUDGET: $283,200
BASE OF ALLOCATION: Total Operating Budget
BASE OF PERCENT COST
DIRECT COST PROGRAM ALLOCATION OF TOTAL ALLOCATION
Planning & Development 590,800$ 3.66%10,365$
Police 6,499,300 40.27%114,045
Engineering 443,200 2.75%7,788
Building Safety 314,100 1.95%5,522
Public Works:
Public Works Admin 569,200 3.53%9,997
Sewer Maintenance 375,500 2.33%6,599
Street Maintenance 717,700 4.45%12,602
Water System Maintenance 4,840,000 30.00%84,960
Parks Maintenance 463,200 2.87%8,128
Soto Sports Complex 214,500 1.33%3,767
Recreation:
Administration 428,700 2.66%7,533
Other Programs 604,000 3.74%10,592
Other Budget Activity:
Landscape Maintenance 5,700 0.04%113
Parkside Maintenance 30,000 0.19%538
Gracelane Maintenance 13,300 0.08%227
Transportation 20,000 0.12%340
Downtown Parking District 4,325 0.03%85
TOTAL DIRECT COST PROGRAMS 16,133,525$ 100.00%
TOTAL INDIRECT COST ALLOCATION 283,200$
16
Item 9.c. - Page 21
CITY OF ARROYO GRANDE
COST ALLOCATION PLAN FOR FISCAL YEAR 2017-2018
Indirect Program Cost Allocation
INDIRECT COST PROGRAM: Non Departmental
BUDGET: $980,400
BASE OF ALLOCATION: Total Operating Budget
BASE OF PERCENT COST
DIRECT COST PROGRAM ALLOCATION OF TOTAL ALLOCATION
Planning & Development 590,800$ 3.66%35,883$
Police 6,499,300 40.27%394,807
Engineering 443,200 2.75%26,961
Building Safety 314,100 1.95%19,118
Public Works:
Public Works Admin 569,200 3.53%34,608
Sewer Maintenance 375,500 2.33%22,843
Street Maintenance 717,700 4.45%43,628
Water System Maintenance 4,840,000 30.00%294,120
Parks Maintenance 463,200 2.87%28,137
Soto Sports Complex 214,500 1.33%13,039
Recreation:
Administration 428,700 2.66%26,079
Other Programs 604,000 3.74%36,667
Other Budget Activity:
Landscape Maintenance 5,700 0.04%392
Parkside Maintenance 30,000 0.19%1,863
Gracelane Maintenance 13,300 0.08%784
Transportation 20,000 0.12%1,176
Downtown Parking District 4,325 0.03%294
TOTAL DIRECT COST PROGRAMS 16,133,525$ 100.00%
TOTAL INDIRECT COST ALLOCATION 980,400$
17
Item 9.c. - Page 22
CITY OF ARROYO GRANDE
COST ALLOCATION PLAN FOR FISCAL YEAR 2017-2018
Indirect Program Cost Allocation
INDIRECT COST PROGRAM: Government Building Maintenance Personnel
BUDGET: $136,800
BASE OF ALLOCATION: Department Square Footage
BASE OF PERCENT COST
DIRECT COST PROGRAM ALLOCATION OF TOTAL ALLOCATION
Planning & Development 646 3.18%4,350$
Police 7,528 37.07%50,712
Engineering 646 3.18%4,350
Building Safety 416 2.05%2,804
Public Works:
Public Works Admin 598 2.95%4,036
Sewer Maintenance 598 2.95%4,036
Street Maintenance 598 2.95%4,036
Water System Maintenance 1,195 5.89%8,058
Parks Maintenance - 0.00%-
Soto Sports Complex - 0.00%-
Recreation:
Administration 1,338 6.59%9,015
Other Programs 6,738 33.19%45,404
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 20,301 100.00%
TOTAL INDIRECT COST ALLOCATION 136,800$
18 Item 9.c. - Page 23
CITY OF ARROYO GRANDE
COST ALLOCATION PLAN FOR FISCAL YEAR 2017-2018
Indirect Program Cost Allocation
INDIRECT COST PROGRAM: Government Building Maintenance Supplies
BUDGET: $80,500
BASE OF ALLOCATION: Department Square Footage
BASE OF PERCENT COST
DIRECT COST PROGRAM ALLOCATION OF TOTAL ALLOCATION
Planning & Development 646 3.18%2,560$
Police 7,528 37.07%29,841
Engineering 646 3.18%2,560
Building Safety 416 2.05%1,650
Public Works:
Public Works Admin 598 2.95%2,375
Sewer Maintenance 598 2.95%2,375
Street Maintenance 598 2.95%2,375
Water System Maintenance 1,195 5.89%4,741
Parks Maintenance - 0.00%-
Soto Sports Complex - 0.00%-
Recreation:
Administration 1,338 6.59%5,305
Other Programs 6,738 33.19%26,718
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 20,301 100.00%
TOTAL INDIRECT COST ALLOCATION 80,500$
19
Item 9.c. - Page 24
CITY OF ARROYO GRANDE
COST ALLOCATION PLAN FOR FISCAL YEAR 2017-2018
Indirect Program Cost Allocation
INDIRECT COST PROGRAM: Auto Shop
BUDGET: $144,400
BASE OF ALLOCATION: Vehicle Maintenance Budget
BASE OF PERCENT COST
DIRECT COST PROGRAM ALLOCATION OF TOTAL ALLOCATION
Planning & Development - 0.00%-
Police 32,000 45.71%66,005
Engineering 2,300 3.29%4,751
Building Safety 500 0.71%1,025
Public Works:
Public Works Admin 500 0.71%1,025
Sewer Maintenance 3,000 4.29%6,195
Street Maintenance 17,800 25.43%36,721
Water System Maintenance 7,000 10.00%14,440
Parks Maintenance 4,600 6.57%9,487
Soto Sports Complex 2,300 3.29%4,751
Recreation:
Administration - 0.00%-
Other Programs - 0.00%-
Other Budget Activity:
Landscape Maintenance - 0.00%-
Parkside Maintenance - 0.00%-
Gracelane Maintenance - 0.00%-
Transportation - 0.00%-
Downtown Parking District - 0.00%-
TOTAL DIRECT COST PROGRAMS 70,000$ 100.00%
TOTAL INDIRECT COST ALLOCATION 144,400$
20
Item 9.c. - Page 25
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Item 9.c. - Page 26