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HomeMy WebLinkAboutClearSource Presentation for Council_2026-07-27CITY OF SEAL BEACH Indirect Cost Allocation Plan for FY 2026-27 (Basis: Budget Fiscal Year 2025-26) Informational Presentation | July 27, 2026 Executive Summary: Key Conclusions •The Indirect Cost Allocation Plan calculates a maximum interfund charge for service assessed on certain funds, such as utilities, to reimburse the General Fund for central oversight, management, and support services •Outcomes presented here are comparable to current reimbursement practices in the annual budget which are achieved through a combination of direct labor allocations and separate overhead charges •The Plan shows equivalent cost recovery to the General Fund from the utility enterprise funds when comparing the calculated interfund charge to the sum of labor allocations and overhead charges in practice during test year FY 2025-26 3 PRIMARY CONCLUSIONS FROM THIS COST ALLOCATION PLAN CLEARSOURCE PRESENTATION TO THE CITY OF SEAL BEACH COMPARISON TO CURRENT CHARGES 4 •Total reimbursement to the General Fund from enterprise funds via direct labor allocations and overhead charges is nearly equivalent to the amount received by the funds via CAP methodology •No change to amounts currently charged to the enterprise funds is found necessary by CAP as of this year •Implementation of new capital programs in the utilities could alter this finding in future year updates CLEARSOURCE PRESENTATION TO THE CITY OF SEAL BEACH Directly Allocated Labor from Central Services Processed in CAP Additional Overhead Charge Total Contributions from Enterprise Funds Maximum Interfund Charge via CAP Change from Budgeted Contributions 501 | Water 846,293$ 440,000$ 1,286,293$ 1,334,607$ 48,314$ 503 | Sewer 736,204$ 293,000$ 1,029,204$ 1,052,515$ 23,311$ 1,582,496$ 733,000$ 2,315,496$ 2,387,122$ 71,625$ Fund Receiving an Interfund Charge for Service and Direct Allocations to Reimburse the General Fund General Fund Contributions in FY 2025-26 Budget Comparison to Total Allocated Costs from this CAP Reimbursement to the General Fund for Allocated Central Services in this Plan Change represents a negligible 2.3% to 3.8% difference. No action to adjust current cost recovery practices is recommended by this report. Orientation to the Cost Allocation Plan HOW DO COSTS GET TO A FUND AND/OR DIVISION? 6 •Directly assigned through budgeting and ongoing cost accounting •Allocated through budgeting and/or cost accounting or through a cost allocation plan (CAP) CLEARSOURCE PRESENTATION TO THE CITY OF SEAL BEACH ALLOCATED ORGANIZATIONS IN THIS PLAN 7 •The General Fund accounts for departments or divisions which provide central oversight, management, or support service Citywide •Total allocable indirect cost is $12,889,849 •This value is allocated in the CAP to benefitting departments Citywide following a selected allocation method assigned to each indirect cost pool CLEARSOURCE PRESENTATION TO THE CITY OF SEAL BEACH Central Services Department or Division FY 2025-26 Budget Expenditure less: Non- Allocable and/or Direct Service Allocable Cost Pool 1000010 | City Council - City Council 205,547$ (100,000)$ 105,547$ 1100011 | Manager - City Manager 1,234,205$ (43,943)$ 1,190,262$ 1100014 | Manager - Human Resources 558,136$ -$ 558,136$ 1100018 | Manager - Risk Management 3,162,913$ -$ 3,162,913$ 1200012 | Clerk - City Clerk 367,491$ -$ 367,491$ 1200013 | Clerk - Elections 4,000$ -$ 4,000$ 1300015 | City Attorney - City Attorney 592,000$ (85,000)$ 507,000$ 1400017 | Finance - Finance 1,810,771$ (169,955)$ 1,640,817$ 1500019 | Non-Departmental - Non-Departmental 1,058,820$ (48,000)$ 1,010,820$ 1502011 | Non-Departmental - IT CM 9,934$ -$ 9,934$ 1502012 | Non-Departmental - IT City Clerk 48,500$ -$ 48,500$ 1502017 | Non-Departmental - IT Finance 88,516$ -$ 88,516$ 1502020 | Non-Departmental - IT Citywide 781,822$ -$ 781,822$ 1502023 | Non-Departmental - IT PD 259,730$ -$ 259,730$ 1502028 | Non-Departmental - IT Marine Safety 16,620$ -$ 16,620$ 1502030 | Non-Departmental - IT CD 1,720$ -$ 1,720$ 1502042 | Non-Departmental - IT PW 31,950$ -$ 31,950$ 1502070 | Non-Departmental - IT CS 21,390$ -$ 21,390$ 5000042 | Public Works - Engineering 1,146,929$ (139,880)$ 1,007,049$ 5000050 | Public Works - Auto Maintenance 851,642$ 851,642$ 5000052 | Public Works - Building Maintenance 1,673,991$ (450,000)$ 1,223,991$ Total Allocable Central Services Cost 13,926,626$ (1,036,778)$ 12,889,849$ ALLOCATED ORGANIZATIONS “Budget Expenditure” on this table refers to planned amounts for each division including labor costs that were directly allocated via budget. This is a “restored” amount to the home division for CAP processing. “Non-Allocable” includes outward-facing public services or other activities not related to central services. INDIRECT COST ALLOCATION PLAN (ANALYSIS) 8 •A rational method to distribute costs which support multiple activities across the City •Processes costs that cannot be easily identified with a particular final cost objective without effort disproportionate to the results achieved •Attributes the allocated cost to the City’s direct public services •Allocated costs are commonly referred to as “overhead” •Informs a variety of cost recovery opportunities CLEARSOURCE PRESENTATION TO THE CITY OF SEAL BEACH Cost Item Cost Item Cost Item Cost Item Cost Item Allocation Base Benefitted Units or “Direct Services” Cost Center Cost CenterCost CenterCost Center Indirect Cost Pool* A cost traced to multiple service functions, typically a central service, general governmental, or administrative function. Not reasonably assigned directly. Expense categories, such as labor, materials, supplies, and services. The data set used as the basis for distributing indirect cost pools to benefitted units. Organizational departments/programs that represent the mission of the City: the final public service. Cost Center * Frequently referred to in this plan as a “Central Services Function.” •Allocate across the entire organization without bias for ability or preference to pay •Root allocated costs in recent or current documented fiscal year with confidence in reported or budgeted expense items •Use allocation metrics based on readily available and replicable information to reflect current conditions, not created solely for cost allocation •Generate allocated shares that reasonably reflect service or benefit received or represent an acceptable proportionality between benefitting units •Attempt to avoid large swings from year to year unless underlying organizational change has occurred and warranting such swings •Create a tool and method to support annual update and application of continually improving metrics •Be mindful of downstream impacts to cost of service-based rates/fees (Prop 218, Prop 26), and transparent accounting for other programs GUIDING PRINCIPLES IN CAP DEVELOPMENT 9 CLEARSOURCE PRESENTATION TO THE CITY OF SEAL BEACH (SLIDE 1 OF 3) ALLOCATED COST POOLS AND ALLOCATION BASES IN THIS PLAN 10 •The CAP uses data from existing City systems, industry methods, and available staff time estimates to derive a functional cost pool to be allocated from each service organization •The CAP sets a readily accessible and replicable basis for reasonably allocating each function to benefitting departments CLEARSOURCE PRESENTATION TO THE CITY OF SEAL BEACH Allocable Cost Pool Allocation Basis 1000010 | City Council - City Council 105,547$ Governmental Oversight 52,773$ FTEEs, Citywide Governmental Oversight 26,387$ Modified Operating Expenses, Citywide Governmental Oversight 26,387$ CIP Expenditures, Citywide 1100011 | Manager - City Manager 1,190,262$ Agency Management 595,131$ FTEEs, Citywide Agency Management 297,565$ Modified Operating Expenses, Citywide Agency Management 297,565$ CIP Expenditures, Citywide 1100014 | Manager - Human Resources 558,136$ Workforce Support 558,136$ FTEEs, Citywide 1100018 | Manager - Risk Management 3,162,913$ Agency Risk, General Fund -$ Modified Operating Expenses, General Fund Agency Risk, Citywide 1,238,524$ Modified Operating Expenses, Citywide Facilities Risk, General Fund -$ Modified Operating Expenses, General Fund Facilities Risk, Citywide 536,568$ Modified Operating Expenses, Citywide Workforce Risk, General Fund -$ FTEEs, General Fund Workforce Risk, Citywide 1,387,821$ FTEEs, Citywide 1200012 | Clerk - City Clerk 367,491$ Governmental Administration 183,745$ FTEEs, Citywide Governmental Administration 91,873$ Modified Operating Expenses, Citywide Governmental Administration 91,873$ CIP Expenditures, Citywide 1200013 | Clerk - Elections 4,000$ Governmental Oversight 4,000$ All to City Council 1300015 | City Attorney - City Attorney 507,000$ General Counsel 354,000$ Modified Operating Expenses, Citywide Workforce Support 153,000$ FTEEs, Citywide (Table continues on the following page.) Central Services Department/Division and Functional Cost Pool Created by the Plan (SLIDE 2 OF 3) ALLOCATED COST POOLS AND ALLOCATION BASES IN THIS PLAN 11 •The CAP uses data from existing City systems, industry methods, and available staff time estimates to derive a functional cost pool to be allocated from each service organization •The CAP sets a readily accessible and replicable basis for reasonably allocating each function to benefitting departments CLEARSOURCE PRESENTATION TO THE CITY OF SEAL BEACH (Continues table from the preceding page.) Allocable Cost Pool Allocation Basis 1400017 | Finance - Finance 1,640,817$ Accounting / Financial Reporting 572,683$ Net Oper. Exp, Cash Balance, CIP Expend. Budget / Financial Planning 285,523$ Net Operating Expense, CIP Expenditures Payroll 212,322$ FTEEs, Citywide Accounts Payable 146,188$ Services & Supplies Expenses Accounts Receivable & Counter 168,944$ Receipted Revenues Utility Customer Service & Analysis 227,054$ Utility Sales and Service Charges Purchasing 28,101$ Modified Operating Expenses, Citywide 1500019 | Non-Departmental - Non-Departmental 1,010,820$ Workforce Support, Citywide 833,500$ FTEEs, Citywide Workforce Support, General Fund -$ FTEEs, General Fund Facilities Support, Citywide -$ Building Area Occupied, Citywide Facilities Support, City Hall -$ FTEEs, City Hall Occupants Financial / Admin. Support, Citywide 177,320$ Modified Operating Expenses, Citywide Financial / Admin. Support, General Fund -$ Modified Operating Expenses, General Fund 1502011 | Non-Departmental - IT CM 9,934$ City Manager Support 9,934$ All to City Manager 1502012 | Non-Departmental - IT City Clerk 48,500$ City Clerk Support 48,500$ All to City Clerk 1502017 | Non-Departmental - IT Finance 88,516$ Finance Support 88,516$ All to Finance 1502020 | Non-Departmental - IT Citywide 781,822$ Citywide Support 781,822$ FTEEs, Citywide 1502023 | Non-Departmental - IT PD 259,730$ Police Support 259,730$ All to Police (Table continues on the following page.) Central Services Department/Division and Functional Cost Pool Created by the Plan (SLIDE 3 OF 3) ALLOCATED COST POOLS AND ALLOCATION BASES IN THIS PLAN 12 •The CAP uses data from existing City systems, industry methods, and available staff time estimates to derive a functional cost pool to be allocated from each service organization •The CAP sets a readily accessible and replicable basis for reasonably allocating each function to benefitting departments CLEARSOURCE PRESENTATION TO THE CITY OF SEAL BEACH (Continues table from the preceding page.) Allocable Cost Pool Allocation Basis 1502028 | Non-Departmental - IT Marine Safety 16,620$ Marine Safety Support 16,620$ All to Marine Safety 1502030 | Non-Departmental - IT CD 1,720$ Community Development Support 1,720$ All to Community Development 1502042 | Non-Departmental - IT PW 31,950$ Public Works Support 31,950$ All to Public Works 1502070 | Non-Departmental - IT CS 21,390$ Community Services Support 21,390$ All to Community Services 5000042 | Public Works - Engineering 1,007,049$ Department Administration, Workforce 261,793$ FTEEs, Public Works Programs Department Administration, Operations 163,347$ Net Operating Expense, Public Works Programs Department Administration, Infrastructure 228,247$ CIP Expenditures, Public Works Programs Public Projects & Infrastructure 353,662$ CIP Expenditures, Citywide 5000050 | Public Works - Auto Maintenance 851,642$ Fleet Support, Citywide 554,200$ Assigned Vehicles, Citywide Fleet Support, Non-Utility 297,442$ Assigned Vehicles, Excluding Utilities 5000052 | Public Works - Building Maintenance 1,223,991$ City Hall 441,471$ FTEEs, City Hall Occupants Police Facilities 522,028$ All to Police Community Centers & Facilities 216,784$ All to Community Services Marine Safety Facilities 19,979$ All to Marine Safety Pier Facilities 23,729$ All to Tidelands/Beach Total Allocable Central Services Cost 12,889,849$ Central Services Department/Division and Functional Cost Pool Created by the Plan DISTRIBUTION OF CITYWIDE OVERHEAD TO DEPARTMENTS 13 •This is the resulting spread of the total $12.89 million in allocated central services costs to departmental designation in the CAP. •This informs Indirect Cost Rates (ICRs), which are used to determine interfund charges for service. CLEARSOURCE PRESENTATION TO THE CITY OF SEAL BEACH These are department “designations” in the CAP, not always exact departments in the City’s accounting and organization structure. These departmental designations are structured to consolidate divisions of like services and produce expressions of Citywide overhead reasonable and undistorted to the underlying direct service provided by the grouped divisions. 38.3% 10.6%10.4% 8.9% 8.2% 7.0% 6.1% 4.0% 3.9%1.2%0.9%0.6% Police Public Works - Maintenance Public Works - Water Marine Safety Public Works - Sewer Community Services General Government & Unclassifed Community Development Tidelands/Beach Refuse Fire Public Works - Engineering INDIRECT COST RATE (ICR) BY DEPARTMENT •A percent of a cost basis that reflects a department’s share of Citywide overhead •ICR as a percent of direct expense by “Department” is most relevant for Seal Beach. •Overhead follows departments into each fund and/or to other cost recovery applications. •Provides a relatively stable outcome applicable to changing costs year over year •Caution: Comparisons between departments are not meaningful. Each department has a unique cost profile on which its allocated overhead is expressed. 14 CLEARSOURCE PRESENTATION TO THE CITY OF SEAL BEACH Departmental Designation in the CAP ICR on Eligible Direct Expense Community Development 21.0% Community Services 55.6% Fire 1.4% Marine Safety 47.3% Police 26.2% Public Works - Engineering 55.6% Public Works - Maintenance 26.2% Public Works - Sewer 78.6% Public Works - Water 19.8% Refuse 11.6% Composite for the City 20.7% INDIRECT COST RATES Interfund Charges for Central Service CALCULATED INTERFUND CHARGES FOR SERVICE 16 •These values represent the total allocated overhead costs received through the CAP process by utility funds •Values shown represent maximum recoverable costs found by CAP on funds that are sustained by cost of service based rate revenue streams CLEARSOURCE PRESENTATION TO THE CITY OF SEAL BEACH Maximum Interfund Charge in This Plan [a] Distribution of Outcomes 501 | Water 1,334,607$ 10.4% 503 | Sewer 1,052,515$ 8.2% 2,387,122$ 18.5% 106 | Tidelands Beach 1,418,978$ 11.0% All Other Non-General Funds 604,333$ 4.7% 100 | General Fund - Remaining Central Services Borne 8,479,416$ 65.8% Total Central Services Allocated in this Plan 12,889,849$ 100.0% [a] The City would need to evaluate eligibility and sufficiency of funding sources to accept the calculated charge from this Plan. Fund Receiving an Interfund Charge for Service and/or Direct Allocations to Reimburse the General Fund Total Allocated Costs Maximum Reimbursement to the General Fund for Allocated Central Services in this Plan COMPARISON TO CURRENT CHARGES 17 •Total reimbursement to the General Fund from enterprise funds via direct labor allocations and overhead charges is nearly equivalent to the amount received by the funds via CAP methodology •No change to amounts currently charged to the enterprise funds is found necessary by CAP •Implementation of new Capital Programs in the utilities could alter this finding in future updates CLEARSOURCE PRESENTATION TO THE CITY OF SEAL BEACH Directly Allocated Labor from Central Services Processed in CAP Additional Overhead Charge Total Contributions from Enterprise Funds Maximum Interfund Charge via CAP Change from Budgeted Contributions 501 | Water 846,293$ 440,000$ 1,286,293$ 1,334,607$ 48,314$ 503 | Sewer 736,204$ 293,000$ 1,029,204$ 1,052,515$ 23,311$ 1,582,496$ 733,000$ 2,315,496$ 2,387,122$ 71,625$ Fund Receiving an Interfund Charge for Service and Direct Allocations to Reimburse the General Fund General Fund Contributions in FY 2025-26 Budget Comparison to Total Allocated Costs from this CAP Reimbursement to the General Fund for Allocated Central Services in this Plan Change represents a negligible 2.3% to 3.8% difference. No action to adjust current cost recovery practices is recommended by this report. •Receive and file this Indirect Cost Allocation Plan report •Update the Indirect Cost Rates calculated by this CAP, which are used for other reporting and/or cost recovery applications, no longer than every three to five years •Revisit cost allocation and cost recovery on the utility enterprises prior to next rate study cycle NEXT STEPS 18 CLEARSOURCE PRESENTATION TO THE CITY OF SEAL BEACH Supplemental Information HOW TO REVIEW A COST ALLOCATION PLAN Philosophical and analytical decisions which impact the numerical outcome of the CAP, from largest and broadest impact to smallest and most refined impact 20 CLEARSOURCE PRESENTATION TO THE CITY OF SEAL BEACH 1.Should and can direct service programs bear cost recovery of indirect support/activity otherwise funded outside of them? 2.Do I agree that an allocated cost center provides support or benefit, and do I agree with the cost items and amounts accounted for in those cost centers? A.Does the allocated cost center provide broad agency-wide or departmental support, or should the center’s costs be broken down into more detailed functions of service to improve allocation? B.Do I agree with how the costs have been broken down into functions of service? 3.Do I agree that the metric assigned to each allocated function of service yields a proportionate receipt of that function by beneficiaries? COMPOSITION OF INTERFUND CHARGE (WATER) 21 CLEARSOURCE PRESENTATION TO THE CITY OF SEAL BEACH •Over 30% of received cost is attributable to Finance services, driven by financial enterprise size and retail customer servic e billing operation. •Over 25% is attributable to Public Works department administration and engineering support. •Nearly 24% is attributed to City Manager and Risk Management costs. Water Finance Public Works Engineering Risk Management City Manager Public Works Auto Maintenance City Clerk Non-Departmental City Attorney Information Technology City Council Human Resources Public Works Building Maintenance Grouping of Central Services Value Received City Council 24,035$ City Manager 124,259$ Human Resources 23,325$ Risk Management 191,168$ City Clerk 46,242$ City Attorney 36,105$ Finance 416,049$ Non-Departmental 46,188$ Information Technology 31,711$ Public Works Engineering 337,933$ Public Works Auto Maintenance 57,591$ Public Works Building Maintenance -$ Total Cost Received to Department Class 1,334,607$ Central Services Received via Allocation COMPOSITION OF INTERFUND CHARGE (SEWER) 22 CLEARSOURCE PRESENTATION TO THE CITY OF SEAL BEACH Sewer Finance Public Works Engineering Risk Management City Manager Non-Departmental City Clerk City Attorney Information Technology City Council Human Resources Public Works Auto Maintenance Public Works Building Maintenance Grouping of Central Services Value Received City Council 21,377$ City Manager 100,147$ Human Resources 18,625$ Risk Management 181,487$ City Clerk 37,327$ City Attorney 34,964$ Finance 337,235$ Non-Departmental 39,959$ Information Technology 25,392$ Public Works Engineering 241,604$ Public Works Auto Maintenance 14,398$ Public Works Building Maintenance -$ Total Cost Received to Department Class 1,052,515$ Central Services Received via Allocation •32% of received cost is attributable to Finance services, driven by financial enterprise size and retail customer service bil ling operation. •23% is attributable to Public Works department administration and engineering support. •Over 26% is attributed to City Manager and Risk Management costs. SUPPLEMENTAL INFORMATION: ACTUAL ALLOCATED COSTS VIA TWO-STEP PROCESS 23 The two-step allocation method means that a central service organization – including its own received share of Citywide overhead – is fully allocated to benefitting departments who provide outward- facing services to the community CLEARSOURCE PRESENTATION TO THE CITY OF SEAL BEACH Central Services Department or Division FY 2025-26 Budget Expenditure less: Non- Allocable and/or Direct Service Allocable Cost Pool Prior to Two-Step Process less: Costs Allocable to Other Central Services plus: Costs Received from Other Central Services Effective Cost Pool via Two-Step Method 1000010 | City Council - City Council 205,547$ (100,000)$ 105,547$ (16,166)$ 216,860$ 306,241$ 1100011 | Manager - City Manager 1,234,205$ (43,943)$ 1,190,262$ (182,303)$ 286,470$ 1,294,429$ 1100014 | Manager - Human Resources 558,136$ -$ 558,136$ (119,930)$ 95,799$ 534,005$ 1100018 | Manager - Risk Management 3,162,913$ -$ 3,162,913$ (622,866)$ 23,046$ 2,563,093$ 1200012 | Clerk - City Clerk 367,491$ -$ 367,491$ (56,286)$ 174,201$ 485,405$ 1200013 | Clerk - Elections 4,000$ -$ 4,000$ (4,000)$ 292$ 292$ 1300015 | City Attorney - City Attorney 592,000$ (85,000)$ 507,000$ (97,621)$ 31,492$ 440,871$ 1400017 | Finance - Finance 1,810,771$ (169,955)$ 1,640,817$ (181,268)$ 541,262$ 2,000,811$ 1500019 | Non-Departmental - Non-Departmental 1,058,820$ (48,000)$ 1,010,820$ (211,530)$ 64,550$ 863,839$ 1502011 | Non-Departmental - IT CM 9,934$ -$ 9,934$ (9,934)$ 725$ 725$ 1502012 | Non-Departmental - IT City Clerk 48,500$ -$ 48,500$ (48,500)$ 3,541$ 3,541$ 1502017 | Non-Departmental - IT Finance 88,516$ -$ 88,516$ (88,516)$ 6,463$ 6,463$ 1502020 | Non-Departmental - IT Citywide 781,822$ -$ 781,822$ (167,995)$ 57,088$ 670,915$ 1502023 | Non-Departmental - IT PD 259,730$ -$ 259,730$ -$ 18,965$ 278,695$ 1502028 | Non-Departmental - IT Marine Safety 16,620$ -$ 16,620$ -$ 1,214$ 17,834$ 1502030 | Non-Departmental - IT CD 1,720$ -$ 1,720$ -$ 126$ 1,846$ 1502042 | Non-Departmental - IT PW 31,950$ -$ 31,950$ (31,950)$ 2,333$ 2,333$ 1502070 | Non-Departmental - IT CS 21,390$ -$ 21,390$ -$ 1,562$ 22,952$ 5000042 | Public Works - Engineering 1,146,929$ (139,880)$ 1,007,049$ (118,258)$ 456,854$ 1,345,645$ 5000050 | Public Works - Auto Maintenance 851,642$ -$ 851,642$ (57,908)$ 155,283$ 949,017$ 5000052 | Public Works - Building Maintenance 1,673,991$ (450,000)$ 1,223,991$ (278,955)$ 155,860$ 1,100,896$ Total Allocable Central Services Cost 13,926,626$ (1,036,778)$ 12,889,849$ (2,293,986)$ 2,293,986$ 12,889,849$ ALLOCABLE COSTS BY IN THE TWO-STEP ALLOCATION METHOD “Budget Expenditure” on this table refers to planned amounts for each division including labor costs that were directly alloc ated via budget. This is a “restored” amount to the home division for CAP processing. “Non-Allocable” includes outward-facing public services or other activities not related to central services. SUPPLEMENTAL INFORMATION: FTE DISTRIBUTION IN 101-1400017 FINANCE •The CAP generates a functional portrayal of certain central service divisions •Finance functions are based on interview to determine job duties and focus areas of individual positions •The overall percentage distribution of annual time can be reviewed alternatively as a distribution of FTEs or implicit weekly hours 24 CLEARSOURCE PRESENTATION TO THE CITY OF SEAL BEACH Total for Department Per Individual Accounting / Financial Reporting 17%1.48 59 7.0 Budget / Financial Planning 12%1.01 40 4.8 Payroll 14%1.19 48 5.6 Accounts Payable 12%1.03 41 4.9 Accounts Receivable & Counter 15%1.27 51 6.0 Utility Customer Service & Analysis 16%1.35 54 6.4 Purchasing 2%0.15 6 0.7 General / Administration (Reallocated)12%0.99 40 4.7 Total 100%8.46 338 40 Central Services Function in Finance/Administrative Services Distribution of Overall Annual Staff Time [a] Distributed Full-Time Equivalent Employees Implicit Average Weekly Hours [b] [a] Developed by individual position. Distributions reflect the allocation of FTEs. In the Cost Allocation Plan, distribution follows the position's total cost. [b] For illustration purposes. Does not take into account leave time and irregularity of work efforts for each function throughout the month and year. SUPPLEMENTAL INFORMATION: ILLUSTRATING THE IMPACTS OF VARIOUS ALLOCATION METRICS 25 Choice of allocation metric determines how each benefiting organization receives its share of an indirect cost pool CLEARSOURCE PRESENTATION TO THE CITY OF SEAL BEACH Utility Enterprises Police Community Services Marine Safety All Other Modified Operating Expenses, Citywide 16%37%3%5%39% Full-Time Equivalent Employees, Citywide 6%40%6%15%33% Utility Sales and Service Charges 100%0%0%0%0% Assigned Vehicles, Citywide 11%43%2%11%33% CIP Expenditures, Citywide 31%***69% Allocation Metric Share by Departmental Grouping in All Funds * May have benefiting CIP attributed to specific funds. This metric focuses on CIP attributable to the enterprise fund versus all other.