Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Finance Indirect Cost Allocation topic
No spam. Unsubscribe anytime.
Seal Beach council receives and files indirect cost allocation plan; consultant says utility overhead allocation immaterial
Summary
After a presentation by consultant Terry Matson, the council voted 5–0 to receive and file an indirect cost allocation plan that identifies about $2.3M–$2.4M in general‑fund support allocable to water and sewer enterprises and helps meet OCTA/OCTA M2 documentation requirements.
The City Council unanimously voted to receive and file an indirect cost allocation plan on July 27, a document prepared by Clear Source consultant Terry Matson to allocate central support costs (finance, HR, clerk, etc.) across city funds. Finance Manager Huang introduced the item and said staff asked the council to accept the plan as a tool for cost reporting and recovery.
Consultant Terry Matson explained the plan’s approach and said the analysis produced no material difference from the city’s current practices: "Your current practices do not result in an over allocation of costs," he told the council, and the analysis identified roughly $2.3 million that represents the reasonable allocation of support costs to water and sewer enterprises. Matson and staff answered resident questions about methodology, exclusions and the two‑step allocation method and noted an accompanying Excel workbook documents the underlying assumptions.
Mayor Pro Tem Wong moved to receive and file the plan, Councilmember Steele seconded, and the motion carried 5–0. Staff said the plan satisfies OCTA documentation expectations for M2 local‑fair‑share funds and recommended periodic updates every three to five years or when the organization changes significantly.
