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Home My WebLink AboutMinutes - September 25, 2007 SSCITY OF LODI INFORMAL INFORMATIONAL MEETING "SHIRTSLEEVE" SESSION CARNEGIE FORUM, 305 WEST PINE STREET TUESDAY, SEPTEMBER 25, 2007 An Informal Informational Meeting ("Shirtsleeve" Session) of the Lodi City Council was held Tuesday, September 25, 2007, commencing at 7:02 a.m. A. ROLL CALL Present: Council Members — Katzakian, Mounce, and Mayor Johnson Absent: Council Members — Hitchcock and Hansen Also Present: City Manager King, City Attorney Schwabauer, and City Clerk Johl B. TOPIC(S) B-1 "Presentation of Cost Allocation Plan by MuniFinancial Services" City Manager King briefly introduced the subject matter. Deputy City Manager Krueger and Marshall Eyerman with MuniFinancial provided a presentation regarding the cost allocation plan. Specific topics of discussion included MuniFinancial background, what is a cost allocation plan, building blocks of a cost allocation plan, direct costs, indirect costs, data collection, methodology, double -step down, allocation example, and overhead rate summary. In response to Mayor Pro Tempore Mounce, Mr. Krueger stated the cost of the study was approximately $20,000. City Manager King stated the study is significant in how it relates to water and wastewater, providing justification set in technology and science for direct and indirect costs and administrative costs, and it may also assist with federal grants. In response to Mayor Pro Tempore Mounce, Mr. King stated the premise of the study is to justify centralized administrative costs that are charged to water and wastewater and review direct and indirect allocations in various areas, including existing redevelopment like activities. City Attorney Schwabauer stated currently the City Manager's office is spending time on redevelopment and if the costs do not come directly from redevelopment allocation, they could come from water and wastewater indirect allocations. In response to Mayor Pro Tempore Mounce, Mr. King stated the cost allocation study has nothing to do with redevelopment and provided an overview of obligations in order to receive tax increment. Mr. King stated money can be paid back from the redevelopment agency to the City if a project area was formed. In response to Mayor Johnson, Mr. Krueger stated the study can be adjusted on an annual basis as necessary by staff and used as a template for future budget -related purposes. In response to Mayor Johnson, Mr. Krueger confirmed the document can live on its own and be amended by staff periodically. He also stated MuniFinancial would be available for assistance if necessary. C. COMMENTS BY THE PUBLIC ON NON -AGENDA ITEMS None D. ADJOURNMENT No action was taken by the City Council. The meeting was adjourned at 7:28 a.m. ATTEST: Randi Johl, City Clerk er AGENDA ITEM ?) I CITY OF LODI COUNCIL COMMUNICATION TM AGENDA TITLE: Presentation of Cost Allocation Plan by MuniFinancial Services MEETING DATE: PREPARED BY: September 25, 2007 Deputy City Manager RECOMMENDED ACTION: Receive presentation of Cost Allocation Plan by Analysts from Muni - Financial Services. BACKGROUND INFORMATION: MuniFinancial was engaged by the City to provide a comprehensive analysis to determine the appropriate allocation of costs between central service departments and operating departments. The largest central service departments include the Finance, Budget, Non -departmental and Information Technology divisions. The largest operating departments are the three utility fund operations (Water, Wastewater and Electric). The report furnished by MuniFinancial shows an allocation of central services costs of approximately $9.3 million and the basis upon which each of the central service department costs are allocated to all operating departments. Staff anticipates using the cost allocation plan methodology developed by MuniFinancial in developing the budget for fiscal year 2008-09 and to make mid -year adjustments in the 2007-08 budget. The mid -year adjustments will reflect the distribution of costs to the Water and Wastewater Utility funds as reported on page 27 of the attached report. The following table shows the adjustments that will be proposed to City Council at a later date: The line item of In -lieu Taxes for Water and Wastewater funds will be deleted from future budgets. Representatives from MuniFinancial will make a power point presentation on Tuesday morning that will explain their methodology and the results of their analysis. gqznd��4_� I 2tc�� JkIi Krueger, Deputy City Mana er Attachment APPROVED: /Z;;k--- Bla' g, City Manager 2007-08 Adjusted Budget Adjustments Budget Water Utility Fund Cost of Services 617,700 442,422 1,060,122 In -lieu Taxes 418.69941� $ 6. 99) 0 1,036,399 23,723 1,060,122 Wastewater Utiltiy Fund Cost of Services 574,661 876,817 1,451,478 In -lieu Taxes 830.000 (830,000) 0 1,404,661 46,817 1,451,478 The line item of In -lieu Taxes for Water and Wastewater funds will be deleted from future budgets. Representatives from MuniFinancial will make a power point presentation on Tuesday morning that will explain their methodology and the results of their analysis. gqznd��4_� I 2tc�� JkIi Krueger, Deputy City Mana er Attachment APPROVED: /Z;;k--- Bla' g, City Manager VI■Ll7fg City of Lodi Overhead Cost Allocation Study Marshall Eyerman, Principal Consultant Phone: (951) 587-3562 Email: Marshalle@muni.com Brandan Landsdorf, Analyst II Phone: (951) 587-3504 Email: Blandsdorf@muni.com _ Expertise Education Revenue Enhancement What is a Cost Allocation Plan? • A comprehensive City-wide Cost Allocation Plan ensures that all costs associated with the City's Central Services Departments are appropriately allocated to the respective City Operational Departments • Cost Allocation Plans create a tool that formulates a fair and equitable methodology to identify and allocate indirect costs to direct cost programs City of Lodi MMuniFinandal 2 Cost Allocation Plan Central Service Departments Central service departments provide support to operating departments Operating Departments Operating departments provide services directly to the public City of Lodi MMuniFjClawial 3 Building Blocks of a Cost Allocation Plan • An evaluation of the details of the City's actual costs from its audited financial statements for each of the Central Services Departments to determine which amounts are appropriately allocable to the Operating Departments • Direct costs are those that can specifically be identified with a particular service • Indirect costs are not inherently identifiable with a specific operating program City of Lodi MMun iFinandal 4 Direct Costs • Direct program costs are readily identifiable in the City's budget • Direct costs are those that can be specifically identified with a particular service, such as park maintenance, fire suppression or building and safety City of Lodi MMun iFinandal 5 Indirect Costs • Indirect costs are not inherently identifiable with a specific operating program, but are incurred for a joint purpose that benefits more than one cost objective • Examples of indirect costs are citywide expenditures that are budgeted in what are commonly called non - departmental accounts, such as: - Utilities - Postage - Telephones City of Lodi MMun iFinandal 6 Data Collection • Cost Allocation Plans depend on the fundamental determination of how to appropriately allocate each central service department's costs to the operating departments. For example: - The Human Resources Department may allocate its services based on the number of employees in each of the other departments or on the number of new hires in each department - The Finance Department may allocate according to the size of each department's budget - Other bases for allocation include building space square footage and Council agenda appearances - The actual allocation process is determined by review and discussion City of Lodi MMuniFinanClal 7 Methodology • Direct Single Rate Allocation • Direct Multiple Rate Allocation • Single Step -Down Allocation • Cross Allocation • Double Step -Down - Most accurate and equitable - Utilizes two steps to allocate indirect costs City of Lodi WMuniFinandal $ Double -Step Down • First Step - Identify the allocable budget of each central service department - Distribute the allocable budget of each central service department to other central service departments and operating departments as indirect costs - Distribute facilities maintenance expenses to central service departments and operating departments as indirect costs City of Lodi MMun iFinandal 9 Double -Step Down • Second Step - "Close Out" step - Allocate indirect costs from central service departments just to operating departments • Calculating the total indirect costs for the central service departments, subtracting them out, and then allocating them to the operating departments • Once this step is complete, all central service departments' indirect costs distributed to the operating departments City of Lodi MMun iFinanCrai 10 Allocation Example Departments Total Computers' Dept. % 2 Allocation Uity Uouncll b 1..j5"/0 15,62S1 City Manager 11 2.48% 28,748 City Clerk 4 0.90% 10,454 City Attorney 3 0.68% 7,840 Human Resources 6 1.35% 15,681 Information Technology 17 3.83% 44,429 Police 95 21.40% 248,277 Fire 22 4.95% 57,496 Public Works -Engineering 31 6.98% 81,017 Totals 444 100% $ 15160,369 Total Allocation 4 28,748 10,454 7,840 15,681 44,429 248,277 57,496 81,017 $ 1,160,369 City of Lodi MMus jFinar al 11 Overhead Rate Summary Police 6,247,430 $ 14,692,716 $ 1,287,407 2,399,763 8.76% Fire Parks and Recreation 9,000,340 413,803 598,458 Community Center 6.65% Public Works -Engineering 10.94% 1,288,089 19,979,528 268,917 5.31% 20.88% Public Works -Streets 1,451,478 7,237,450 Electric Utility 503,107 2,679,559 6.95% Public Works -Transit 6,247,430 231,865 3.71% Library 2,399,763 188,205 7.84% Parks and Recreation 3,791,698 413,803 10.91% Community Center 1,462,957 159,995 10.94% Water Utility 19,979,528 1,060,122 5.31% Wastewater Utility 38,424,331 1,451,478 3.78% Electric Utility 75,454,770 2,679,559 3.55% Community Development 3,009,814 345,795 11.49% City of Lodi MMuniFjna ial 12 Questions & Answers City of Lodi MMunjFlCl fal 13 CITY OF LODI COST ALLOCATION PLAN SEPTEMBER 25, 2007 Corporate Office: 27368 Via Industria Suite 110 Temecula, CA 92590 Tel: (951) 587-3500 Tel: (800) 755 -MUNI (6864) Fax: (951) 587-3510 MuniFinancial Office Locations: Anaheim, CA Phoenix, AZ Lancaster, CA Orlando, FL Los Angeles Regional Office Memphis, TN Oakland, CA Seattle, WA Sacramento, CA www.muni.com TABLE ❑ F CONTENTS TableOf Contents..................................................................................................................... i ExecutiveSummary...................................................................................................................1 Introduction...............................................................................................................................2 Methodology..............................................................................................................................3 CostAllocation Analysis............................................................................................................4 CityCouncil...........................................................................................................................5 Table 1: City Council Budget and Allocation Summary....................................................5 Table 2: Total Allocable City Council Budget...................................................................6 CityManager..........................................................................................................................7 Table 4: Total Allocable City Manager Budget..................................................................8 CityClerk..............................................................................................................................9 Table 5: City Clerk Budget and Allocation Summary.......................................................9 Table 6: Total Allocable City Clerk Budget.....................................................................10 CityAttorney.......................................................................................................................11 Table 7: City Attorney Budget and Allocation Summary................................................11 Table 8: Total Allocable City Attorney Budget...............................................................12 HumanResources................................................................................................................13 Table 9: Human Resources Budget and Allocation Summary..........................................13 Table 10: Total Allocable Human Resources Division Budget........................................14 Information Technology......................................................................................................15 Table 11: Information Technology Budget and Allocation Summary .............................15 Table 12: Total Allocable Information Technology Budget.............................................16 Finance - Revenue and Collections......................................................................................17 Table 13: Finance Budget and Allocation Summary........................................................17 Table 14: Total Allocable Finance - Revenues and Collections Budget ...........................18 Finance- Accounting...........................................................................................................19 Table 15: Finance - Accounting Budget and Allocation Summary...................................19 Table 16: Total Allocable Finance - Accounting Division Budget....................................20 Budgetand Treasury............................................................................................................21 Table 17: Budget and Treasury Budget and Allocation Summary....................................21 Table 18: Total Allocable Budget and Treasury Division Budget....................................22 NonDepartmental...............................................................................................................23 Table 19: Non Departmental Budget and Allocation Summary......................................23 Table 20: Total Allocable Non Departmental Budget......................................................24 FacilityMaintenance............................................................................................................25 E WWFinandal Table 21: Facility Maintenance Budget and Allocation Summary....................................25 Table 22: Total Allocable Facility Maintenance Budget...................................................26 Public Works - Administration............................................................................................27 Table 23: Public Works - Administration Budget and Allocation Summary ...................27 Table 24: Total Allocable Public Works - Administration Budget...................................28 Allocation of Central Service Department Expenditures.........................................................29 Table 25: Total Indirect Cost Summary...........................................................................30 MuniFinancial ii EXECUTIVE SUMMARY This cost allocation plan summarizes a comprehensive analysis completed for the City of Lodi, California ("the City") to determine the appropriate allocation of costs from City central service departments to all other departments. The primary objective is to allocate costs from departments generally known as central service departments because they provide services and support to operating departments and cost centers that conduct the operations necessary to serve the community. To ensure that all costs associated with the provision of central services are appropriately allocated to the respective operational departments, we have analyzed and identified all central service expenditures and determined which are allocable to operating departments as indirect costs, otherwise known as overhead. Additionally, this report describes the methodology used for distributing costs associated with the operation of each of the central services expenditures, as allocated to each of the operating departments, for cost recovery. Table 25 summarizes the allowable central services expenditures, as allocated to each of the operating departments, for cost recovery. ®Mun!Financlal 1 INTRODUCTION In the early 1970s, the cost allocation plan concept was introduced to many government agencies by identifying the indirect costs related to providing services, and allocating them to direct cost programs in a fair and equitable manner. Since then, local governments have found that through this process, city departments that are supported substantially by other departments can be allocated their fair share of the City's overhead costs, and that service fees, or user fees can more accurately reflect the total costs involved in providing services to the public. City governments have administrative and general management departments and related cost centers. These central services departments provide services to operating departments and cost centers. These operating departments provide services directly to the community. A City may allocate a portion of the costs of the central services departments to the operating departments to more accurately represent the costs of the operating departments and to permit a more accurate calculation of fees charged by the operating departments. The purpose of this study is twofold: first, to determine the allocable portions of costs from the central services departments to the operating departments, and second, to provide user fees with the appropriate overhead costs to determine the actual cost of services. To accomplish this, this report should be used as a supplement to the comprehensive user fee study. ®Mun!Finandal 2 METHODOLOGY The methodology used in the Cost Allocation Plan is based on the methods of the federal Office of Management and Budget (OMB). OMB Circular A-87 describes five different methods for allocating indirect costs. The double step down method, chosen for this study, is considered the most accurate and equitable method described in Circular A-87. The double step down method utilizes two steps to allocate indirect costs. In the first step, central services department expenditures are identified and allocated as indirect costs to both central services departments and operating departments. The second step allocates indirect costs from the central services departments to the operating departments. ®Mun!Fnanclal 3 C O ST ALLO CATI O N ANALYS I S For the purpose of this study, there are twelve (12) departments/divisions which comprise the City's central service departments. These are: City Council, City Manager, City Clerk, City Attorney, Human Resources, Information Technology, Finance - Revenue and Collections, Finance - Accounting, Budget and Treasury, Non Departmental, Facility Maintenance, and Public Works - Administration. Costs from these central service departments are distributed to operating departments to ensure that the City of Lodi is maximizing the recovery of general fund indirect costs from its various enterprises and other chargeable funds. Indirect costs are not always identifiable with a specific operating program, but are incurred for a joint purpose that benefits more than one cost objective in the City. Common examples include finance, procurement, human resources and utility costs, and others such as postage and telephones that are sometimes budgeted in non -departmental accounts and utilize allowance costs (similar to depreciation schedules for capital assets). Each succeeding section includes a description of each of the central service departments, a description of the methodology used in allocating indirect costs to operating departments, and a table for each central services department showing the methodology utilized in allocating indirect costs to operating departments. ®MuniFinanclal 4 CITY COUNCIL The primary responsibility of the City Council is to determine the best use of allocation of the City's financial and human resources by providing policy direction and enacting municipal legislation. But in addition to legislative and policy decisions, the City Council deals with a number of administrative functions such as serving in a quasi-judicial role on certain administrative appeals and directing the administration of its policy decisions through the City Manager for delegation to appropriate City staff. Due to this, we estimate that 80% of the City Council's budget is allocable to the operating departments, while the remaining 20% is not allocable. Of the eighty percent allocable, we have determined that forty percent (40%) should be allocated to operating departments based upon the frequency with which each operating department has items listed on City Council agendas. To determine this frequency, a survey was conducted on a random sampling of nineteen City Council agendas selected from each of the past four quarters to determine the number of times each department had matters on the agenda. We believe that the remaining forty percent (40%) should be allocated based upon the number of Full -Time Equivalent (FTE) employees assigned to each department. The 20% of the budget that is not allocable is considered to be time that the City Council spends on ceremonial duties that is reasonably subsidized by the General Fund. Table 1 below summarizes the Total Department Budget, Total Allocable Funds, and provides a Percent Allocation Detail for the distribution of allocable funds. Table 1: City Council Budget and Allocation Summary Sources of Funds: ' General Fund $ 96,250 Total Department Budget $ 96,250 Allocable Funds: General Fund $ 96,250 Total $ 96,250 Percent Allocation Detail: 20.0% Unallocable $ (19,250) 40.0% Agenda Frequency $ 38,500 40.0% Total FTE 38,500 Total Allocable $ 77,000 'From City of Lodi Fiscal Year 2007-08 Budget. ®MuniFinancial 5 Table 2 below provides an account of how the total allocable amount of the City Council budget should be distributed to each operating department. Table 2: Total Allocable City Council Budget Departments Agenda Frequency ' Dept. %' Allocation Total FTE ' Dept. % s Allocation 6 Total Allocation' City Council 1 0.57% $ 221 - 0.00% $ $ 221 City Manager 13 7.47% 2,876 4.00 0.78% 300 3,176 City Clerk 22 12.64% 4,868 4.00 0.78% 300 5,168 City Attorney 24 13.79% 5,310 3.00 0.58% 225 5,535 Human Resources 2 1.15% 443 6.17 1.20% 463 905 Information Technology 3 1.72% 664 8.00 1.56% 600 1,264 Finance - Revenue/ Collections 1 0.57% 221 11.00 2.14% 825 1,046 Finance - Accounting 6 3.45% 1,328 8.00 1.56% 600 1,928 Budget & Treasury 4 2.30% 885 8.00 1.56% 600 1,485 Non -Departmental - 0.00% - 0.50 0.10% 38 38 Facility Maintenance 0.00% 4.00 0.78% 300 300 Equipment Maintenance 0.00% - 11.00 2.14% 825 825 Public Works - Administration 11 6.32% 2,434 IOU U.58% 225 2,659 Police 6 3.45% 1,328 123.39 24.04% 9,254 10,582 Fire 1 0.57% 221 64.30 12.53% 4,823 5,044 Public Works - Engineering 1 0.57% 221 18.95 3.69% 1,421 15643 Public Works - Streets 11 6.32% 25434 29.00 5.65% 2,175 45609 Public Works - Transit 3 1.72% 664 2.00 0.39% 150 814 Library 2 1.15% 443 21.23 4.14% 1,592 2,035 Parks and Recreation 6 3.45% 1,328 61.09 11.90% 4,582 55909 Community Center 5 2.87% 1,106 15.08 2.94% 1,131 25237 Water Utility 11 6.32% 2,434 18.15 3.54% 1,361 3,795 Electric Utility 17 9.77% 3,761 49.12 9.57% 3,684 7,446 Community Development 19 10.92% 4,204 15.74 3.07% 1,181 5,385 Community RDA - 0.00% - - 0.00% - Total $ 174 100% $ 38,500 513.32 100% $ 38,500 $ 77,000 ' Allocation based on the frequency that a City department has agenda items listed on City Council agendas. Departmental totals derived from a survey of nineteen City of Lodi City Council agendas from July 1, 2006 through June 30, 2007. 'Percentage derived by dividing the number of 'Dollar amount allocable to each City department based upon agenda frequency data. 'Number of Full -Time Equivalent ("FTE") employees in each department based upon data received from the City. 5 Percentage derived by dividing the total number of FTE employees in each department by the total number of FTE positions. 6 Dollar amount of City Council budget allocated to each department based upon the number of FTE employees in each department. 7 Allocable portion of total City's FY 2007-2008 City Council budget expenditures distributed to other departments. ' Total City Council budget allocable to City departments. E Mun!Finaridal 6 CITY MANAGER The Office of the City Manager is responsible for implementing the policies and programs established by the City Council, preparing and implementing the annual budget, and hiring all City employees. Fifty percent (50%) of the City Manager's budget is reasonably allocated among other departments based on the City Council agenda frequency, and fifty percent (50%) should be allocated based upon the number of Full -Time Equivalent (FTE) employees assigned to each department. The total City Manager Budget of $1,178,675 is reduced by $102,160, which is directly allocated to the Community Redevelopment Agency. The remaining $1,076,515 is then allocated to all other departments based on the methodology described above. Table 3 below summarizes the Total Department Budget, Total Allocable Funds, and provides a Percent Allocation Detail for the distribution of allocable funds. Table 3: Total Allocable City Manager Budget Sources of Funds:' General Fund $ 1,178,675 Total Department Budget $ 1,178,675 Allocable Funds: General Fund $ 1,178,675 Less RDA Allocation (102,160) Total $ 1,076,515 Percent Allocation Detail: 50.0% Agenda Frequency $ 538,258 50.0% Total FTE 538,258 Total Allocable $ 1,076,515 1 From City of Lodi Fiscal Year 2007-08 Budget. ®MuniFinancial 7 Table 4 below provides an account of how the total allocable amount of the City Manager budget should be distributed to each operating department. Table 4: Total Allocable City Manager Budget Departments Agenua Frequency Dept. %' Allocation FTE ° Dept. %' Allocation Total Allocation City Council 1 0.57% $ 3,093 - 0.00% $ - $ 3,093 City Manager 13 7.47% 40,215 4.00 0.78% 4,194 44,409 City Clerk 22 12.64% 68,056 4.00 0.78% 4,194 72,250 City Attorney 24 13.79% 74,242 3.00 0.58% 3,146 77,388 Human Resources 2 1.15% 6,187 6.17 1.20% 6,470 12,657 Information Technology 3 1.72% 9,280 8.00 1.56% 8,389 17,669 Finance - Revenue/ Collections 1 0.57% 3,093 11.00 2.14% 11,534 14,628 Finance - Accounting 6 3.45% 18,561 8.00 1.56% 8,389 26,949 Budget & Treasury 4 2.30% 12,374 8.00 1.56% 8,389 20,762 Non -Departmental - 0.00% - 0.50 0.10% 524 524 Facility Maintenance 0.00% 4.00 0.78% 4,194 4,194 Equipment Maintenance - 0.00% 11.00 2.14% 11,534 11,534 Public Works - Administration 11 6.32% 34,028 3.00 0.58% 3,146 37,174 Police 6 3.45% 18,561 123.39 24.04% 129,384 147,945 Fire 1 0.57% 3,093 64.30 12.53% 67,424 70,517 Public Works - Engineering 1 0.57% 3,093 18.95 3.69% 19,871 22,964 Public Works - Streets 11 6.32% 34,028 29.00 5.65% 30,409 64,437 Public Works - Transit 3 1.72% 9,280 2.00 0.39% 2,097 11,377 Library 2 1.15% 6,187 21.23 4.14% 22,261 28,448 Parks and Recreation 6 3.45% 18,561 61.09 11.90% 64,058 82,618 Community Center 5 2.87% 15,467 15.08 2.94% 15,813 31,280 Water Utility 11 6.32% 34,028 18.15 3.54% 19,032 53,060 Wastewater Utility 5 2.87% 15,467 24.60 4.79% 25,795 41,262 Electric Utility 17 9.77% 52,588 49.12 9.57% 51,506 104,095 Community Development 19 10.92% 58,775 15.74 3.07% 16,505 75,280 Community RDA s - 0.00% - - 0.00% - 102,160 Total' 174 100% $ 538,258 513.32 100% $ 538,258 $ 1,178,675 t Allocation based on the frequency that a City department has agenda items listed on City Council agendas. Departmental totals derived from a survey of nineteen City of Lodi City Council agendas from July 1, 2006 through June 30, 2007. s Percentage derived by dividing the number of departmental items on agendas by the total number of agenda items from City Council agenda survey. 3 Dollar amount allocable to each City department based upon agenda frequency data. ° Number of Full -Time Equivalent ("FTE") employees in each department based upon data received from the City. s Percentage derived by dividing the total number of FTE employees in each department by the total number of FTE positions. 6 Dollar amount of City Manager budget allocated to each department based upon the number of FTE employees in each department. ' Allocable portion of total City's FY 2007-2008 City Manager budget expenditures distributed to other departments. s A direct allocation of $102,160 is subtracted from the Total Department's Budget and the remainder is allocated to all other departments based on FTEs and Agenda Frequency. v Total City Manaeer budeet allocable to City departments. E Mun!Finaridal 8 CITY CLERK The Office of the City Clerk efficiently and effectively provides comprehensive records management and document retrieval in order to satisfy both staff and the public's need for complete and timely information on city business. This may include preparing City Council meeting agendas, compiling minutes of Council meetings, maintaining the City's historical records, providing copies of City documents for a fee, and conducting municipal elections. In our assessment, fifty percent (50%) is reasonably allocated among other departments based on the City Council agenda frequency and the remaining fifty percent (50%) is allocated based on the number of Full -Time Equivalent (FTE) employees in each department. Table 5 below summarizes the Total Department Budget, Total Allocable Funds, and provides a Percent Allocation Detail for the distribution of allocable funds. Table S: City Clerk Budget and Allocation Summary Sources of Funds: ' General Fund $ 398,493 Total Department Budget $ 398,493 Allocable Funds: General Fund $ 398,493 Total $ 398,493 Percent Allocation Detail: 50.0% Agenda Frequency $ 199,247 50.0% Total FTE 199,247 Total Allocable $ 398,493 1 From City of Lodi Fiscal Year 2007-08 Budget. ®MuniFinandal 9 Table 6 below provides an account of how the total allocable amount of the City Clerk budget should be distributed to each operating department. Table 6: Total Allocable City Clerk Budget Departments Agenda Frequency ' Dept. % 1 Allocation Total FTE " Dept. % s Allocation Total Allocation' City Council 1 0.57% $ 1,145 - 0.00% $ - $ 1,145 City Manager 13 7.47% 14,886 4.00 0.78% 1,553 16,439 City Clerk 22 12.64% 25,192 4.00 0.78% 1,553 26,745 City Attorney 24 13.79% 27,482 3.00 0.58% 1,164 28,647 Human Resources 2 1.15% 2,290 6.17 1.20% 2,395 4,685 Information Technology 3 1.72% 3,435 8.00 1.56% 3,105 6,541 Finance - Revenue/ Collections 1 0.57% 1,145 11.00 2.14% 4,270 5,415 Finance - Accounting 6 3.45% 6,871 8.00 1.56% 3,105 9,976 Budget & Treasury 4 2.30% 4,580 8.00 1.56% 3,105 7,686 Non -Departmental - 0.00% - 0.50 0.10% 194 194 Facility Maintenance 0.00% 4.00 0.78% 1,553 1,553 Equipment Maintenance 0.00% - 11.00 2.14% 4,270 4,270 Public Works -Administration 11 6.32% 12,596 3.00 0.58% 1,164 13,761 Police 6 3.45% 6,871 123.39 24.04% 47,894 54,765 Fire 1 0.57% 1,145 64.30 12.53% 24,958 26,103 Public Works - Engineering 1 0.57% 1,145 18.95 3.69% 7,355 8,501 Public Works - Streets 11 6.32% 12,596 29.00 5.65% 11,256 23,852 Public Works - Transit 3 1.72% 3,435 2.00 0.39% 776 4,212 Library 2 1.15% 2,290 21.23 4.14% 8,240 10,531 Parks and Recreation 6 3.45% 6,871 61.09 11.90% 23,712 30,583 Community Center 5 2.87% 5,725 15.08 2.94% 5,853 11,579 Water Utility 11 6.32% 12,596 18.15 3.54% 7,045 19,641 Wastewater Utility 5 2.87% 5,725 24.60 4.79% 9,549 15,274 Electric Utility 17 9.77% 19,467 49.12 9.57% 19,066 38,533 Community Development 19 10.92% 21,757 15.74 3.07% 6,110 27,866 Community KDA - 0.00% - 0.00% - - Totals 174 100% $ 199,247 513.32 100% $ 199,247 $ 398,493 1 Allocation based on the frequency that a City department has agenda items listed on City Council agendas. Departmental totals derived from a survey of nineteen City of Lodi City Council agendas from July 1, 2006 through June 30, 2007. s Percentage derived by dividing the number of departmental items on agendas by the total number of agenda items from City Council agenda survey. 3 Dollar amount allocable to each City department based upon agenda frequency data. 'Number of Full -Time Equivalent ("FTE") employees in each department based upon data received from the City. 'Percentage derived by dividing the total number of FTE employees in each department by the total number of FTE positions. 6 Dollar amount of City Clerk budget allocated to each department based upon the number of FTE employees in each department. ' Allocable portion of total City's FY 2007-2008 City Clerk budget expenditures distributed to other departments. Total City Clek budget allocable to City departments. E Mun!Finaridal 10 C I TY ATT O R N EY The City Attorney is responsible for advising City Council regarding ordinances, resolutions, and contracts before the Council. The Office also provides legal advice to city departments and other agencies, boards and committees, as well as drafting ordinances, contracts, resolutions, and agreements. The City Attorney's office represents the City in litigation matters and prosecutes violators of City laws. As the City Attorney provides services that relate to all aspect of government business, one hundred percent (100%) of the City Attorney General Fund budget is allocated among the other City departments based upon their percentage of the total City budget as summarized in Table 7 and shown in Table 8. The total City Attorney Budget of $488,573 is reduced by $184,569, which is directly allocated to PCE/TCE litigation. The remaining $304,004 is then allocated to all other departments based on the methodology described above. Table 7 below summarizes the Total Department Budget, Total Allocable Funds, and provides a Percent Allocation Detail for the distribution of allocable funds. Table 7. City Attorney Budget and Allocation Summary Sources of Funds: ' General Fund $ 488,573 Total Department Budget $ 488,573 Allocable Funds: General Fund $ 488,573 Less PCE/TCE litigation $ (184,569) Total $ 304.004 Percent Allocation Detail: 100.0% Total Dept. Budget Total Allocable 1 From City of Lodi Fiscal Year 2007-08 Budget. ®MuniFinandal 11 Table 8 below provides an account of how the total allocable amount of the City Attorney's budget should be distributed to each operating department. Table 8: Total Allocable City Attorney Budget Departments Total Dept. Budget 1 Dept. % 2 Allocation City Councilo City Manager 1,076,515 0.56% 1,688 City Clerk 398,493 0.21% 625 City Attorney 304,004 0.16% 477 Human Resources 721,510 0.37% 1,131 Information Technology 1,160,369 0.60% 1,820 Finance - Revenue/ Collections 824,300 0.43% 1,293 Finance - Accounting 782,625 0.40% 1,227 Budget & Treasury 666,838 0.34% 1,046 Non -Departmental 1,804,050 0.93% 2,829 Facility Maintenance 825,322 0.43% 1,294 Equipment Maintenance 1,815,246 0.94% 2,847 Public Works - Administration 388,546 U.ZU% 609 o ice o 2J,U41 Fire 9,000,340 4.64% 14,115 Public Works - Engineering 1,288,089 0.66% 2,020 Public Works - Streets 7,237,450 3.73% 11,350 Public Works - Transit 6,247,430 3.22% 9,797 Library 2,399,763 1.24% 3,763 Parks and Recreation 3,791,698 1.96% 5,946 Community Center 1,462,957 0.75% 2,294 Water Utility 6 19,979,528 10.31% 31,332 Wastewater Utility 38,424,331 19.82% 60,258 Electric Utility 75,454,770 38.92% 118,330 Community Development 3,009,814 1.55% 4,720 Community KDA I - 0.00% - Totals $ 193,852,954 100%_$ 304,004 Total Allocation 1,688 625 477 1,131 1,820 1,293 1,227 1,046 2,829 1,294 2,847 609 14,115 2,020 11,350 9,797 3,763 5,946 2,294 215,901 60,258 118,330 4,720 $ 488,573 ' Allocation based on the total dollar amount of each departmental budget less any direct allocable costs. 2 Percentage derived by dividing the total departmental budget by the total City budget. 3 Dollar amount allocable to each City department based upon total dollar amount of each departmental budget. 4 Allocable portion of total City's FY 2007-08 City Attorney's budget expenditures distributed to other departments. 5 Total City Attorney's budget allocable to City departments. 6 Total allocation includes a direct allocation of $184,569 for PCE/TCE litigation. ®MuniFnandal 12 HUMAN RESOURCES The Human Resources is one of several divisions of the Internal Service Department. The Division's primary role is to support the City by providing all necessary services related to human resource management so as to assure that municipal services are delivered to the community in an efficient and effective manner. Human Resources handles issues relating to the hiring, firing, recruitment, or ongoing employment of the City's workforce, and manages employee benefits and job postings. In our assessment, one hundred percent (100%) of the Human Resources Division's budget should be allocated to departments based upon the number of Full Time Equivalent (FTE) employees in each department. Table 9 below summarizes the Total Division Budget, Total Allocable Funds, and provides a Percent Allocation Detail for the distribution of allocable funds. Table 9: Human Resources Budget and Allocation Summary Sources of Funds: 1 General Fund $ 721,510 Total Department Budget $ 721,510 Allocable Funds: General Fund $ 721,510 Total $ 721,510 Percent Allocation Detail: 100.0% Total FTE $ 721,510 Total Allocable $ 721,510 1 From City of Lodi Fiscal Year 2007-08 Budget. ®MuniFinandal 13 Table 10 below provides an account of how the total allocable amount of the Human Resources Division budget should be distributed to each operating department. Table 10: Total Allocable Human Resources Division Budget Departments Total FTE 1 Dept. % 2 Allocation 3 City Council - 0.00% $ - City Manager 4.00 0.78% 5,622 City Clerk 4.00 0.78% 5,622 City Attorney 3.00 0.58% 4,217 Human Resources 6.17 1.20% 8,672 Information Technology 8.00 1.56% 11,245 Finance - Revenue/ Collections 11.00 2.14% 15,461 Finance - Accounting 8.00 1.56% 11,245 Budget & Treasury 8.00 1.56% 11,245 Non -Departmental 0.50 0.10% 703 Facility Maintenance 4.00 0.78% 5,622 Equipment Maintenance 11.00 2.14% 15,461 Public Works - Administration 3.00 0.58% 4,217 o ice 123.39 24.04%1/5,454 Fire 64.30 12.53% 90,379 Public Works - Engineering 18.95 3.69% 26,636 Public Works - Streets 29.00 5.65% 40,762 Public Works - Transit 2.00 0.39% 2,811 Library 21.23 4.14% 29,840 Parks and Recreation 61.09 11.90% 85,867 Community Center 15.08 2.94% 21,196 Water Utility 18.15 3.54% 25,511 Wastewater Utility 24.60 4.79% 34,577 Electric Utility 49.12 9.57% 69,042 Community Development 15.74 3.07% 22,124 Community KDA - O.OU% Total 5 Total Allocation 4 5,622 5,622 4,217 8,672 11,245 15,461 11,245 11,245 703 5,622 15,461 4,217 90,379 26,636 40,762 2,811 29,840 85,867 21,196 25,511 34,577 69,042 22,124 513.32 100% $ 721,510 $ 721,510 1 Number of Full -Time Equivalent ("FTE") employees in each department based upon information provided by the City. 2 Percentage derived by dividing the total number of FTE employees in each department by the total number of FTE positions. 3 Dollar amount of the Human Resources budget allocated to each department based upon the number of FTE employees in each department. 4 Allocable portion of total City's FY 2007-08 Human Resources budget expenditures distributed to other departments. s Total Human Resources budget allocable to City departments. ®MunFnandal 14 INFORMATION TECHNOLOGY The City's Information Technology Division activity centers on the City's goal to enhance access to information and the organization's increasing dependency upon accurate, timely information. Information Technology's goals include: 1. Long-range policies and standards for acquiring, maintaining and replacing equipment and software; 2. Responsive and on-going support and training for computer equipment and software, telephones, and other miscellaneous equipment; 3. Providing efficient, effective and responsive service; 4. Maintain current programs and applications at levels necessary to conduct operations; 5. Assist staff in improving productivity through data processing and information systems; and 6. Maintain operations 24 hours per day. In our assessment, one hundred percent (100%) is reasonably allocated among other departments based on the number of supported computers in each department. Table 11 below summarizes the Total Division Budget, Total Allocable Funds, and provides a Percent Allocation Detail for the distribution of allocable funds. Table 11: Information Technology Budget and Allocation Summary Sources of Funds: 1 General Fund $ 1,160 Total Department Budget $ 1,160 )cable Funds: General Fund $ 1,160 Total $ 1,160 Percent Allocation Detail: 100.0% Total Computers $ 1,160 Total Allocable $ 1,160 1 From City of Lodi Fiscal Year 2007-08 Budget. ®MuniFinancial 15 Table 12 below provides an account of how the total allocable amount of the Information Technology budget should be distributed to each operating department. Table 12: Total Allocable Information Technology Budget Departments Total Computers ' Dept. % Z Allocation a City Council 6 1.35% 15,681 City Manager 11 2.48% 28,748 City Clerk 4 0.90% 10,454 City Attorney 3 0.68% 7,840 Human Resources 6 1.35% 15,681 Information Technology 17 3.83% 44,429 Finance - Revenue/ Collections 24 5.41% 62,723 Finance - Accounting 10 2.25% 26,134 Budget & Treasury 7 1.58% 18,294 Non -Departmental - 0.00% - Facility Maintenance 5 1.13% 13,067 Equipment Maintenance 6 1.35% 15,681 Public Works - Administration 3 0.68% 7,840 Police 95 21.40% 248,277 Fire 22 4.95% 57,496 Public Works - Engineering 31 6.98% 81,017 Public Works - Streets 10 2.25% 26,134 Public Works - Transit 1 0.23% 2,613 Library - 0.00% - Parks and Recreation 33 7.43% 86,244 Community Center 17 3.83% 44,429 Water Utility 16 3.60% 41,815 Wastewater Utility 17 3.83% 44,429 Electric Utility 71 15.99% 185,555 Community Development 29 6.53% 75,790 Community RDA I- 0.00% - Total s Total Allocation a 28,748 10,454 7,840 15,681 44,429 62,723 26,134 18,294 13,067 15,681 7,840 57,496 81,017 26,134 2,613 86,244 44,429 41,815 44,429 185,555 75,790 444 100% $ 1,160,369 $ 1,160,369 1 Number of computers that each department has based upon data received from the City. s Percentage derived by dividing the total number of computers that each department has by the total number of computers. 3 Dollar amount of Information Technology budget allocated to each department based upon the number of supported computers in each department. 4 Allocable portion of total City's FY 2007-2008 Information Technology budget expenditures distributed to other departments. 5 Total Information Technology budget allocable to City departments. E Mun!Finaridal 16 FINANCE — REVENUE AND COLLECTIONS The Finance Division maintains the financial health, stability and well being of the City by managing the City's fiscal and financial affairs in a prudent, effective, and efficient manner. The Finance - Revenue and Collections Division is responsible for collecting City funds, preparing and collecting utility billings and other receivables, and providing accurate, timely and comprehensive financial information to the City Council, the City Manager, other City Departments, the media, and the general public. In our assessment, one hundred percent (100%) is reasonably allocated among other departments based on the revenues of each department. Tables 13 and 14 illustrate this distribution. Table 13 below summarizes the Total Division Budget, Total Allocable Funds, and provides a Percent Allocation Detail for the distribution of allocable funds. Table 13: Finance Budget and Allocation Summary Sources of Funds:1 General Fund $ Total Department Budget $ Allocable Funds: General Fund $ Total $ Percent Allocation Detail: 100.0% Total Dept. Revenues $ 824,300 Total Allocable $ 824,300 'From City of Lodi Fiscal Year 2007-08 Budget. ®MuniFinancial 17 Table 14 below provides an account of how the total allocable amount of the Finance - Revenues and Collections budget should be distributed to each operating department. Table 14: Total Allocable Finance - Revenues and Collections Budget Departments Total Dept. Revenues ' Dept. % 2 Allocation 3 Total Allocation 4 City Council $ 0.00% $ - $ - City Manager - 0.00% - - City Clerk - 0.00% - - City Attorney - 0.00% - - Human Resources - 0.00% - - Information Technology - 0.00% - - Finance - Revenue/ Collections - 0.00% - - Finance - Accounting - 0.00% - - Budget & Treasury - 0.00% - - Non -Departmental - 0.00% - - Facility Maintenance - 0.00% - - Equipment Maintenance - 0.00% - - Public Works - Administration - 0.00% - - Police 1,205,736 0.78% 6,462 6,462 Fire 88,000 0.06% 472 472 Public Works - Engineering 155,200 0.10% 832 832 Public Works - Streets 4,847,014 3.15% 25,976 25,976 Public Works - Transit 6,842,862 4.45% 36,672 36,672 Library 1,738,990 1.13% 9,319 9,319 Parks and Recreation 818,460 0.53% 4,386 4,386 Community Center 572,925 0.37% 3,070 3,070 Water Utility 19,204,140 12.49% 102,917 102,917 Wastewater Utility 39,066,024 25.40% 209,359 209,359 Electric Utility 77,282,257 50.24% 414,165 414,165 Community Development 1,991,001 1.29% 10,670 10,670 Community RDA - 0.00% - - Totals $ 153,812,609 100% $ 824,300 $ 824,300 'Allocation based on the total dollar amount of each department's budgeted revenues. 2 Percentage derived by dividing the each department's revenues by the total. 3 Dollar amount allocable to each City department based upon total dollar amount of each departmental revenues. 4 Allocable portion of total City's FY 2007-08 Finance Revenue and Collections budget expenditures distributed to other departments. 5 Total Finance - Revenues and Collections budget allocable to City departments. ®MunRnandal 18 FINANCE —ACCOUNTING The Finance - Accounting Division is responsible for the City's accounts payables, preparing the City's payroll, conducting the City's annual audit, and preparing financial reports for governmental agencies, City Council, City Manager, and other city departments. In our assessment, one hundred percent (100%) is reasonably allocated among the other City departments based upon their percentage of the total City budget. Tables 15 and 16 illustrate this distribution. Table 15 below summarizes the Total Division Budget, Total Allocable Funds, and provides a Percent Allocation Detail for the distribution of allocable funds. Table 15: Finance - Accounting Budget and Allocation Summary Sources of Funds:1 General Fund $ Total Department Budget $ Allocable Funds: General Fund $ Total $ Percent Allocation Detail: 100.0% Total Dept. Budget $ Total Allocable $ 'From City of Lodi Fiscal Year 2007-08 Budget. ®MuniFnancial 19 Table 16 below provides an account of how the total allocable amount of the Finance - Accounting Division budget should be distributed to each operating department. Table 16: Total Allocable Finance - Accounting Division Budget Departments Total Dept. Budget 1 Dept. % z Allocation City Council $ 96,250 0.05% $ 389 Catty Manager 1,076,515 0.56% 4,346 City Clerk 398,493 0.21% 1,609 City Attorney 304,004 0.16% 1,227 Human Kesources 721,510 0.37% 2,913 lntormation'l'echnology 1,160,369 0.60% 4,685 Finance - Kevenue/ Collections 824,300 0.43% 3,328 Finance - Accounting 782,625 0.40% 3,160 Budget & Treasury 666,838 0.34% 2,692 Non -Departmental 1,804,050 0.93% 7,283 Facility Maintenance 825,322 0.43% 3,332 Equipment Maintenance 1,815,246 0.94% 7,329 Public Works - Administration 3825,546 U.ZU /O 1,5b') Police 14,692,716 7.58% 59,318 Fire 9,000,340 4.64% 36,336 Public Works - Engineering 1,288,089 0.66% 5,200 Public Works - Streets 7,237,450 3.73% 29,219 Public Works -'Transit 6,247,430 3.22% 25,222 Library 2,399,763 1.24% 9,688 Parks and Kecreation 3,791,698 1.96% 15,308 Community Center 1,462,957 0.75% 5,906 Water Utility 19,979,528 10.31% 80,662 Wastewater Utility 38,424,331 19.82% 155,127 Electric Utility 75,454,770 38.92% 304,627 Community Development 3,009,814 1.55% 12,151 Uommunity KLA - U.UU /o - Total Allocation 4,346 1,609 1,227 2,913 4,685 3,328 3,160 2,692 7,283 3,332 7,329 1,56') 59,318 36,336 5,200 29,219 25,222 9,688 15,308 5,906 80,662 155,127 304,627 12,151 Totals $ 193,852,954 100% $ 782,625 $ 782,625 'Allocation based on the total dollar amount of each departmental budget less any direct allocable costs. 2 Percentage derived by dividing the total departmental budget by the total City budget. 'Dollar amount allocable to each City department based upon total dollar amount of each departmental budget. 4 Allocable portion of total City's FY 2007-08 Finance - Accounting budget expenditures distributed to other departments. 5 Total Finance - Accounting budget allocable to City departments. ®MunRnanclal 20 BUDGET AND TREASURY The Budget and Treasury Division is responsible for: recommending, developing and implementing budget policies and procedures as set by City Council; preparing and publishing the annual budget document; maintaining liaison with the City's designated depositories (banks) and conducting daily banking involving large monetary transactions; investing City funds not required for immediate use; ensuring safety, liquidity and yield on the City's invested funds; protecting City funds from unauthorized use, diversion or theft; and oversight of the City's Purchasing Division. In our assessment, fifty percent (50%) is reasonably allocated among the other City departments based upon their percentage of the total City budget and the remaining fifty percent (50%) is allocated among other departments based on the revenues of each department. Tables 17 and 18 illustrate this distribution. The total Budget and Treasury Budget of $736,443 is reduced by $69,605, which is directly allocated to the Community Redevelopment Agency. The remaining $666,838 is then allocated to all other departments based on the methodology described above. Table 17 below summarizes the Total Division Budget, Total Allocable Funds, and provides a Percent Allocation Detail for the distribution of allocable funds. Table 17. Budget and Treasury Budget and Allocation Summary Sources of Funds: 1 General Fund $ 736,443 Total Department Budget $ 736,443 Allocable Funds: General Fund $ 736,443 Less CRA Allocation $ (69,605) Total $ 666,838 Percent Allocation Detail: 50.0% Total Dept. Budget $ 333,419 50.0% Total Dept. Revenues 333,419 Total Allocable $ 666,838 1 From City of Lodi Fiscal Year 2007-08 Budget. M WWFinandal 21 Table 18 below provides an account of how the total allocable amount of the Budget and Treasury Division budget should be distributed to each operating department. Table 18: Total Allocable Budget and Treasury Division Budget Departments Total Dept. Budget t Dept. % 2 Allocation 3 Total Dept. Revenues ° Dept. % 5 Allocation City Council $ 96,250 0.05% $ 166 $ 0.00% $ City Manager 1,076,515 0.56% 1,852 0.00% City Clerk 398,493 0.21% 685 0.00% City Attorney 304,004 0.16% 523 0.00% Human Resources 721,510 0.37% 1,241 0.00% Information Technology 1,160,369 0.60% 1,996 0.00% Finance - Revenue/ Collections 824,300 0.43% 1,418 0.00% Finance - Accounting 782,625 0.40% 1,346 0.00% Budget & Treasury 666,838 0.34% 1,147 0.00% Non -Departmental 1,804,050 0.93% 3,103 0.00% Facility Maintenance 825,322 0.43% 1,420 0.00% Equipment Maintenance 1,815,246 0.94% 3,122 0.00% Public Works - Administration 388,546 0.20% 668 - 0.00% - Police 14,692,716 7.58% 25,271 1,205,736 0.78% 2,614 Fire 9,000,340 4.64% 15,480 88,000 0.06% 191 Public Works - Engineering 1,288,089 0.66% 2,215 155,200 0.10% 336 Public Works - Streets 7,237,450 3.73% 12,448 4,847,014 3.15% 10,507 Public Works - Transit 6,247,430 3.22% 10,745 6,842,862 4.45% 14,833 Library 2,399,763 1.24% 4,127 1,738,990 1.13% 3,770 Parks and Recreation 3,791,698 1.96% 6,522 818,460 0.53% 1,774 Community Center 1,462,957 0.75% 2,516 572,925 0.37% 1,242 Water Utility 19,979,528 10.31% 34,364 19,204,140 12.49% 41,629 Wastewater Utility 38,424,331 19.82% 66,088 39,066,024 25.40% 84,683 Electric Utility 75,454,770 38.92% 129,779 77,282,257 50.24% 167,524 Community Development 3,009,814 1.55% 5,177 1,991,001 1.29% 4,316 Community RDA - 0.00% - - 0.00% - Total Allocation' $ 166 1,852 685 523 1,241 1,996 1,418 1,346 1,147 3,103 1,420 3,122 668 27,885 15,671 2,552 22,955 25,579 7,897 8,296 3,758 75,993 150,772 297,304 9,493 69,605 Total s 193,852,954 100% $ 333,419 153,812,609 100% $ 333,419 $ 736,443 Allocation based on the total dollar amount of each departmental budget less any direct allocable costs. 2 Percentage derived by dividing the total departmental budget by the total City budget. 3 Dollar amount allocable to each City department based upon total dollar amount of each departmental budget. " Allocation based on the total dollar amount of each department's budgeted revenues. 5 Percentage derived by dividing the each department's revenues by the total. e Dollar amount allocable to each City department based upon total dollar amount of each departmental revenues. ' Allocable portion of total City's FY 2007-2008 Budget and Treasury budget expenditures distributed to other departments. ° Total Budget and Treasury budget allocable to City departments. ®Mun!Anandal 22 NON DEPARTMENTAL One hundred percent (100%) of the department's budget is allocated to departments based upon each department's percentage of the total City budget. Table 19 below summarizes the Total Department Budget, Total Allocable Funds, and provides a Percent Allocation Detail for the distribution of allocable funds. Table 19: Non Departmental Budget and Allocation Summary Sources of Funds: 1 General Fund $ Total Department Budget $ Allocable Funds: General Fund $ Total $ Percent Allocation Detail: 100.0% Total Dept. Budget $ Total Allocable $ 1 From City of Lodi Fiscal Year 2007-08 Budget. E MuniFinaWal 23 Table 20 below provides an account of how the total allocable amount of the Non Departmental budget should be distributed to each operating department. Table 20: Total Allocable Non Departmental Budget Departments otal Dept. Budget Dept. % 2 Allocation 3 Total Allocation City Council $ 96,2505% 6 6 City Manager 1,076,515 0.56% 10,018 10,018 City Clerk 398,493 0.21% 3,708 3,708 City Attorney 304,004 0.16% 2,829 2,829 Human Resources 721,510 0.37% 6,715 6,715 Information Technology 1,160,369 0.60% 10,799 10,799 Finance - Revenue/ Collections 824,300 0.43% 7,671 7,671 Finance - Accounting 782,625 0.40% 7,283 7,283 Budget & Treasury 666,838 0.34% 6,206 6,206 Non -Departmental 1,804,050 0.93% 16,789 16,789 Facility Maintenance 825,322 0.43% 7,681 7,681 Equipment Maintenance 1,815,246 0.94% 16,893 16,893 Public Works - Administration 388,546 0.20% 3,616 3,616 o tce o , Fire 9,000,340 4.64% 83,760 83,760 Public Works - Engineering 1,2885089 0.66% 11,987 115987 Public Works - Streets 7,237,450 3.73% 67,354 67,354 Public Works - Transit 6,247,430 3.22% 58,140 58,140 Library 2,399,763 1.24% 22,333 225333 Parks and Recreation 3,791,698 1.96% 35,287 35,287 Community Center 1,462,957 0.75% 13,615 135615 Water Utility 19,979,528 10.31% 185,935 185,935 Wastewater Utility 38,424,331 19.82% 357,588 357,588 Electric Utility 75,454,770 38.92% 7025203 7025203 Community Development 3,009,814 1.55% 28,010 28,010 Community RDA - 0.00% - Totals $ 193,852,954 100% $ 1,804,050 $ 1,804,050 1 Allocation based on the total dollar amount of each departmental budget less any direct allocable costs. Z Percentage derived by dividing the total departmental budget by the total City budget. 3 Dollar amount allocable to each City department based upon total dollar amount of each departmental budget. 4 Allocable portion of total City's FY 2007-08 Non Departmental budget expenditures distributed to other departments. s Total Non Departmental budget allocable to City departments. ®MunFnandal 24 FACILITY MAINTENANCE The Facilities Maintenance department maintains and manages all City facilities except for Parks and Recreation and Hutchins Street Square (Community Center) facilities; administers construction projects, primarily for building remodels and renovations/additions; and supervises contract labor and vendors for janitorial and other building maintenance services. One hundred percent (100%) of the department's budget is allocated to departments based upon the number of Full Time Equivalent (FTE) employees in each department. Table 21 below summarizes the Total Department Budget, Total Allocable Funds, and provides a Percent Allocation Detail for the distribution of allocable funds. Table 21: Facility Maintenance Budget and Allocation Summary Sources of Funds: 1 General Fund $ 825,322 Total Department Budget $ 825,322 Allocable Funds: General Fund $ 825,322 Total $ 825,322 Percent Allocation Detail: 100.0% Total FTE $ 825,322 Total Allocable $ 825,322 1 From City of Lodi Fiscal Year 2007-08 Budget. ®MuniFinancial 25 Table 22 below provides an account of how the total allocable amount of the Facility Maintenance budget should be distributed to each operating department. Table 22: Total Allocable Facility Maintenance Budget Departments Total FTE Dept. % Allocation Total Allocation City Council 0.00 0.00% - - City Manager 4.00 0.92% 7,552 7,552 City Clerk 4.00 0.92% 7,552 7,552 City Attorney 3.00 0.69% 5,664 5,664 Human Resources 6.17 1.41% 11,649 11,649 Information Technology 8.00 1.83% 15,104 15,104 Finance - Revenue/ Collections 11.00 2.52% 20,768 20,768 Finance - Accounting 8.00 1.83% 15,104 15,104 Budget & Treasury 8.00 1.83% 15,104 15,104 Non -Departmental 0.50 0.11% 944 944 Facility Maintenance 4.00 0.92% 7,552 7,552 Equipment Maintenance 11.00 2.52% 20,768 20,768 Public Works - Administration 3.00 0.69% 5,664 5,664 o ice 123.39 28.23% 232,955 , 55 Fire 64.30 14.71% 121,396 121,396 Public Works - Engineering 18.95 4.33% 35,777 35,777 Public Works - Streets 29.00 6.63% 54,751 54,751 Public Works - Transit 2.00 0.46% 3,776 3,776 Library 21.23 4.86% 40,081 40,081 Parks and Recreation 5 0.00 0.00% - - Community Center 5 0.00 0.00% - - Water Utility 18.15 4.15% 34,266 34,266 Wastewater Utility 24.60 5.63% 46,444 46,444 Electric Utility 49.12 11.24% 92,737 92,737 Community Development 15.74 3.60% 29,717 29,717 Community RDA 10.00 0.00% - Total 6 437.15 100% $ 825,322 $ 825,322 'Number of Full -Time Equivalent ("FTE") employees in each department based upon information provided by the City. 2 Percentage derived by dividing the total departmental budget by the total City budget. 3 Dollar amount allocable to each City department based upon total dollar amount of each departmental budget. 4 Allocable portion of total City's FY 2007-08 Facility Maintenance budget expenditures distributed to other departments. 5 Department not supported by Facility Maintenance Department. 6 Total Facility Maintenance budget allocable to City departments. ®MunRnandal 26 PUBLIC WORKS - ADMINISTRATION Public Works Administration provides overall direction, administrative support and management for the Engineering, Fleet and Facilities Services, Streets, Transit and Water/Wastewater Service Divisions of Public Works, and administers the Solid Waste franchise and oversees PCE/TCE remediation activities. Administration also provides clerical support for Facilities Services, Engineering and Transit. Public Works Administration division provides support for the following divisions: Facility Maintenance, Equipment Maintenance, Public Works - Engineering, Public Works - Streets, Public Works - Transit, Water Utility, and Wastewater Utility. Only these divisions are to receive allocations from the Public Works - Administration budget. We have determined that fifty percent (50%) should be allocated to Public Works divisions based upon the number of Full -Time Equivalent (FTE) employees assigned to each division. We believe that of the remaining fifty percent, twenty five percent (25%) should be allocated based upon each division's percentage of the total budget of all Public Works Administration supported divisions, and twenty five percent (25%) of the division's budget should be allocated among other divisions based on the revenues of each division. Tables 23 and 24 illustrate this distribution. Table 23 below summarizes the Total Division Budget, Total Allocable Funds, and provides a Percent Allocation Detail for the distribution of allocable funds. Table 23: Public Works - Administration Budget and Allocation Summary Sources of Funds:1 General Fund $ 388,546 Total Department Budget $ 388,546 Allocable Funds: General Fund $ 388,546 Total $ 388,546 Percent Allocation Detail: 50.0% Total FTE $ 194,273 25.0% Total Div. Budget 97,137 25.0% Total Div. Revenues 97,137 Total Allocable $ 388,546 1 From City of Lodi Fiscal Year 2007-08 Budget. ®MuniFinancial 27 Table 24 below provides an account of how the total allocable amount of the Public Works - Administration budget should be distributed to each operating department. Table 24: Total Allocable Public Works - Administration Budget Departments TotalFTE ' Dept. %' Allocation Total Div. Budget ' Dept. % s Allocation Total Div. Revenues ' Dept. % s Allocation Total Allocation10 City Council 0.00% $ 0.00% $ 0.00% $ $ City Manager 0.00% 0.00% 0.00% City Clerk 0.00% 0.00% 0.00% City Attorney 0.00% 0.00% 0.00% Human Resources 0.00% 0.00% 0.00% Information Technology 0.00% 0.00% 0.00% Finance - Revenue/ Collections 0.00% 0.00% 0.00% Finance - Accounting 0.00% 0.00% 0.00% Budget & Treasury 0.00% 0.00% 0.00% Non -Departmental 0.00% 0.00% 0.00% - Facility Maintenance 4.00 3.61% 7,020 825,322 1.08% 1,052 0.00% 8,072 Equipment Maintenance 11.00 9.94% 19,304 1,815,246 2.38% 2,314 0.00% 21,618 Public Works - Administration 3.00 2.71% 55265 388,546 0.51% 495 0.00% 5,760 Police 0.00% 0.00% - 0.00% Fire 0.00% - 0.00% - 0.00% - Public Works- Engineering 18.95 17.12% 33,256 1,288,089 1.69% 1,642 155,200 0.22% 215 35,113 Public Works - Streets 29.00 26.20% 50,894 7,237,450 9.50% 9,225 4,847,014 6.91% 6,715 66,834 Public Works - Transit 2.00 1.81% 3,510 6,247,430 8.20% 7,963 6,842,862 9.76% 9,480 20,953 Library 0.00% - 0.00% - 0.00% - - Parks and Recreation 0.00% 0.00% 0.00% Community Center 0.00% - 0.00% - 0.00% - - Water Utility 18.15 16.40% 315852 19,979,528 26.22% 25,467 19,204,140 27.39% 26,605 83,925 Wastewater Utility 24.60 22.22% 43,172 38,424,331 50.42% 48,978 39,066,024 55.72% 54,121 146,271 Electric Utility 0.00% - 0.00% - 0.00% - - Community Development 0.00% 0.00% 0.00% C;ommumty RDA 0.00% 0.00% 0.00% Total t' 110.70 100% $ 194,273 76,205,942 100% $ 97,137 70,115,240 100% $ 97,137 $ 388,546 'Number of Full -Time Equivalent ("FTE") employees in each division based upon data received from the City. z Percentage derived by dividing the total number of Public Works FTE employees in each division by the total number of FTE positions. 3 Dollar amount of Public Works Administration budget allocated to each division based upon the number of FTE employees in each division. ' Allocation based on the total dollar amount of each division's budget. 'Percentage derived by dividing the total divisional budget by the total budget of Public Works Administration supported divisions. 'Dollar amount allocable to each City division based upon total dollar amount of each divisional budget. 'Allocation based on the total dollar amount of each division's budgeted revenues. 'Percentage derived by dividing the each division's revenues by the total. 'Dollar amount allocable to each City division based upon total dollar amount of each divisional revenues. ° Allocable portion of total City's FY 2007-2008 Public Works - Administration budget expenditures distributed to other Public Works divisions. "Total Public Works - Administration budget allocable to Public Works divisions. E Mun!Finaridal 28 ALLOCATION OF CENTRAL SERVICE DEPARTMENT EXPENDITURES The second step of a Full -Cost Allocation Plan is known as the `close out' step. This step allocates the indirect costs from the central service departments to all central service departments and on to the operating departments. Once the `close out' step has been completed, all central services costs will have been passed on to operating departments. Table 25 on the following page summarizes this process by calculating the total indirect costs for the central service departments, subtracting them out, and then allocating them to the operating departments. The footnotes in Table 25 describe how this process is accomplished. E Mun!Rnaridal 29 Table 25: Total Indirect Cost Summary First Step I Second Step I Final Departments City Council City Manager City Clerk City Attorney Human Resources Information Technology Finance - Revenue/ Collections Finance - Accounting Budget & Treasury Non- Departmental Facility Maintenance Public Works - Administration Direct Depts Only Re -distribution to Operating Departments Total Allocation City Council $ 221 $ 3,093 $ 1,145 $ 151 $ - $ 15,681 $ - $ 389 $ 166 $ 896 $ - $ - $ 21,741 $ (21,741) $ City Manager 3,176 44,409 16,439 1,688 5,622 28,748 472 4,346 1,852 10,018 7,552 123,851 (123,851) 598,458 City Clerk 5,168 72,25C 26,745 625 5,622 10,454 832 1,609 685 3,708 7,552 35,113 134,418 (134,418) 268,917 City Attorney 5,535 77,388 28,647 477 4,217 7,84C 25,976 1,227 523 2,829 5,664 66,834 134,347 (134,347) 503,107 Human Resources 905 12,657 4,685 1,131 8,672 15,681 36,672 2,913 1,241 6,715 11,649 20,953 66,249 (66,249) 231,865 Information Technology 1,264 17,669 6,541 1,820 11,245 44,429 9,319 4,685 1,996 10,799 15,104 - 115,549 (115,549) 188,205 Finance - Revenue/ Collections 1,046 14,628 5,415 1,293 15,461 62,723 4,386 3,328 1,418 7,671 20,768 - 133,75C (133,750) 413,803 Finance -Accounting 1,928 26,949 9,976 1,227 11,245 26,134 3,070 3,160 1,346 7,283 15,104 - 104,352 (104,352) 159,995 Budget & Treasury 1,485 20,762 7,686 1,046 11,245 18,294 102,917 2,692 1,147 6,206 15,104 83,925 85,666 (85,666) 1,060,122 Non -Departmental 38 524 194 2,829 703 44,429 209,359 7,283 3,103 16,789 944 146,271 32,407 (32,407) 1,451,478 Facility Maintenance 300 4,194 1,553 1,294 5,622 13,067 414,165 3,332 1,420 7,681 7,552 8,072 54,087 (54,087) 2,679,559 Equipment Maintenance 825 11,534 4,270 2,847 15,461 15,681 10,670 7,329 3,122 16,893 20,768 21,618 120,347 (120,347) 345,795 Public Works - Administration 2,659 37,174 13,761 609 4,217 7,840 - 1,569 668 3,616 5,664 5,760 83,536 (83,536) 197,193 ou of . c ,", .o ....... . r , Y .oLl,vjl .o ", z .o c , r .o - .o , r .o L.,.on .o r , Y .o r , .o , u Police $ 10,582 $ 147,945 $ 54,765 $ 23,041 $ 173,434 $ 248,277 $ 6,462 $ 59,318 $ 27,885 $ 136,735 $ 232,955 $ - $ 1,121,398 $ 166,009 $ 1,287,407 Fire 5,044 70,517 26,103 14,115 90,379 57,496 472 36,336 15,671 83,760 121,396 521,288 77,170 598,458 Public Works - Engineering 1,643 22,964 8,501 2,020 26,636 81,017 832 5,200 2,552 11,987 35,777 35,113 234,241 34,677 268,917 Public Works - Streets 4,609 64,437 23,852 11,350 40,762 26,134 25,976 29,219 22,955 67,354 54,751 66,834 438,232 64,875 503,107 Public Works - Transit 814 11,377 4,212 9,797 2,811 2,613 36,672 25,222 25,579 58,140 3,776 20,953 201,967 29,899 231,865 Library 2,035 28,448 10,531 3,763 29,840 - 9,319 9,688 7,897 22,333 40,081 - 163,937 24,269 188,205 Parks and Recreation 5,909 82,618 30,583 5,946 85,867 86,244 4,386 15,308 8,296 35,287 - - 360,444 53,359 413,803 Community Center 2,237 31,280 11,579 2,294 21,196 44,429 3,070 5,906 3,758 13,615 - - 139,364 20,631 159,995 Water Utility 3,795 53,060 19,641 215,901 25,511 41,815 102,917 80,662 75,993 185,935 34,266 83,925 923,421 136,701 1,060,122 Wastewater Utility 2,951 41,262 15,274 60,258 34,577 44,429 209,359 155,127 150,772 357,588 46,444 146,271 1,264,312 187,166 1,451,478 Electric Utility 7,446 104,095 38,533 118,33C 69,042 185,555 414,165 304,627 297,304 702,203 92,737 - 2,334,034 345,525 2,679,559 Community Development 5,385 75,280 27,866 4,720 22,124 75,790 10,670 12,151 9,493 28,010 29,717 - 301,205 44,590 345,795 Community RDA I- 102,160 I - - - - - - 69,605 1 - - - 171,7651 25,4281 197,193 Subtotal $ 52,45C $ 835,443 $ 271,439 $ 471,536 $ 622,178 $ 893,798 $ 824,30C $ 738,764 $ 717,757 $ 1,702,946 $ 691,90C $ 353,096 $ 8,175,606 $ 1,210,30C $ 9,385,906 Total $ 77,OOC $ 1,178,675 $ 398,493 $ 488,573 $ 721,51C $ 1,160,369 $ 824,30C $ 782,625 $ 736,443 $ 1,804,05C $ 825,322 $ 388,546 $ 9,385,906 $ $ 9,385,906 (1) Central Service Departments are identified as providing some or all of their services directly to City departments. (2) The distribution of specific City Council costs to City department from Table 2. (3) The distribution of specific City Manager costs to City department from Table 4. (4) The distribution of specific City Clerk was to City department from Table 6. (5) The distribution of specific City Attorney costs to City department from Table 8. (6) The distribution of specific Human Resources costs to City department from Table 10. (n The distribution of specific Information Technology costs to City department from Table 12. (8) The distribution of specific Finance - Revenue/ Collections costs to City department from Table 14. (9) The distribution of specific Finance - Accounting costs to City deparcmem from Table 16. (10) The distribution of specific Budget & Treasury cons to City department from Table 18. (11) The distribution of specific Non -Departmental costs to City department from Table 20. (12) The distribution of specific Facility Maintenance cons to City department from Table 20. (13) The distribution of specific Public Works - Administration was to City department from Table 24. (14) The sum of allocations from a Central Service Department to City departments. (15) The Second Step takes the subtotal allocation from the Central Services Departments of $1,210,300 and redistributes it to the Operating Departments based on their percent of the allocation in the First Step. (16) The Total Allocation is the total amount which can be allocated to Operating Departments as an overhead charge for services rendered. (17) Departments that provide services directly to the public and receive some or all of their overhead support from Central Services Departments. MuniFinancial 27