I. RECOMMENDATION:
City Council receive presentation and accept the employee cost allocation results.
II. BACKGROUND:
Periodic employee cost allocation studies are necessary for employees with time allocated to more than one department because over time, roles and needs change. A cost allocation study was requested out of concern for adjustments needed for some employees.
III. DISCUSSION:
The significant changes in annual employee cost allocation are:
1. $124,000 shifted away from the natural gas enterprise (14% of employee cost)
2. $111,000 shifted away from the water enterprise (7% of employee cost)
3. $122,000 shifted to the general fund (1.5% of employee cost, including police and fire)
The report includes an Excel-based model that city staff can use to review and adjust employee cost allocations in the future.
IV. ALTERNATIVES:
Do not adjust allocations.
V. FISCAL IMPACT:
The net fiscal impact to the city overall is zero; however, the results of the study shift cost allocations between departments.
There will be no fiscal impacts at this time. Any adjustments will be prepared in future budget adjustments. |