Title
Budget Snapshot: Cost Allocations
Recommended Action
Committee Recommendation:
Not referred to a committee.
City Manager Recommendation:
Receive a briefing on cost allocations.
Report
Issue:
Whether to receive a briefing on cost allocations.
Staff Contact:
Joan Lutz, Senior Budget and Finance Manager, 360.753.8760
Presenter(s):
Joan Lutz, Senior Budget and Finance Manager
Background and Analysis:
Am annual cost allocation briefing is provided to the Finance Committee to ensure understanding of City financial operations and budget impacts.
The City utilizes indirect cost allocations to spread administrative function costs across all departments and/or funds to ensure they pay their fair share of services. Some administrative functions are Legislative and City Manager’s Office, Legal Services, Human Resources, Communications, Information Services and Finance.
The City also utilizes direct allocations to appropriate costs directly to the department and/or fund that benefits from use. Examples of direct allocations are City Hall and Maintenance Center rent, Property and Liability Insurance, Equipment Rental and Replacement rates.
Cost allocations are updated annually as part of the budget process and reviewed to ensure we continue to use the most appropriate allocation metrics.
Climate Analysis:
No specific climate impacts are identified as a result of this briefing.
Equity Analysis:
No specific equity impacts are identified as a result of this briefing.
Financial Impact:
No specific financial impacts have been identified as a result of this briefing.
Neighborhood/Community Interests (if known):
Members of the community may have an interest in this agenda item as it pertains to City finances and fiscal governance.
Options:
1. Receive a briefing on cost allocations.
2. Do not receive a briefing on cost allocations.
3. Receive a briefing on cost allocations at another time.
Attachments:
Presentation