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Sequim council directs staff to define indirect costs and limit municipal funding support to 15% for overhead
Summary
Council wrestled with how municipal funding grants may be used for administrative costs and asked staff to return with guidance defining direct vs. indirect/administrative expenses and a 15% cap on indirect costs as the working direction.
Sequim City Council on Feb. 24 gave staff direction to revise municipal funding guidance so applicants submit itemized budgets and staff can track administrative time and overhead. Councilors and staff discussed whether municipal funds may pay for organizational overhead, salaries and indirect expenses and settled on returning with a recommended definition and a 15% cap.
What council directed: Staff will come back with revised guidelines that clarify the difference between direct program costs and indirect or administrative costs, require itemized budgets from applicants, and implement a 15% cap on indirect costs as the working guidance for this municipal funding cycle.
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