Agenda-Item-Number-9-Enterprise-Fund-Staff-Report-Allocation-Reduction — Sebastopol City Council, October 20, 2026 (part 2 of 2)

Agenda Item Number 9
City Council Meeting Packet for October 20, 2026

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Agenda Item Number 9
Exhibit 8
CITY OF SEBASTOPOL | INDIRECT COST ALLOCATION PLAN FOR FY 2026-27 BUDGET No. Title No. Title No. Title
Central Services in the General Fund
100 GENERAL FUND 1001 City Council 1 Allocated Indirect Services 100 GENERAL FUND 1101 City Manager 1 Allocated Indirect Services 100 GENERAL FUND 1201 City Attorney 1 Allocated Indirect Services 100 GENERAL FUND 1301 City Clerk 1 Allocated Indirect Services 100 GENERAL FUND 14xx Finance / Admin. Services - All General Fund 1 Allocated Indirect Services 100 GENERAL FUND 23xx Engineering - All General Fund Programs 1 Allocated Indirect Services 100 GENERAL FUND 4102 Public Works - Corporation Yard 1 Allocated Indirect Services 100 GENERAL FUND 4106 Public Works - Governmental Building 1 Allocated Indirect Services 100 GENERAL FUND 0000 Non Departmental 1 Allocated Indirect Services Direct Services in All Funds
0 Unclassified / CIP, ISF, Transfer
2 General Government
3 Planning
4 Building
5 Engineering
6 Fire & Prevention
7 Police
8 Public Works
9 Public Works - Community Facilities
10 Public Works - Water Utility
11 Public Works - Wastewater Utility
Allocation of Remaining Central Services Expense
to Direct Service Units ("Second Allocation")
Fund Organization
General
Admin
Personnel
Services
Info. Tech.

Services Fiscal Services FacilitiesServices
Admin.

Services
-$
-$
-$
-$
-$
-$
-$
-$
-$
-$ -$ -$ -$ -$ -$ $ 29,593
-$ $ 6 $ 2 -$ -$ -$ $ 6,256
-$ $ 262 $ 24 -$ -$ -$ $ 9,244
-$ $ 61 $ 12 -$ -$ -$ $ 3,312
-$ -$ $ 8 -$ -$ -$ $ 1,872
-$ $ 325 $ 271 -$ -$ -$ $ 29,368
-$ $ 2,617 $ 180 -$ -$ -$ $ 62,244
-$ $ 566 $ 45 -$ -$ -$ $ 52,815
-$ $ 103 $ 7 -$ -$ -$ $ 10,293
-$ $ 353 $ 24 -$ -$ -$ $ 73,661
-$ $ 322 $ 20 -$ -$ -$ $ 74,034
Classification for Indirect Rates Non Departmental
Grand Total
Allocation
Grand Total $ $ 4,614 $ 591 $ $ $ $ 352,691
Reconciles to Total on Exhibit 6? Yes

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Agenda Item Number 9
City Council Meeting Packet for October 20, 2026

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Agenda Item Number 9

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Exhibit 9a
CITY OF SEBASTOPOL | INDIRECT COST ALLOCATION PLAN FOR FY 2026-27 BUDGET No. Title No. Title No. Title General
Admin
Admin.

Oversight
General Fiscal
Oversight
Capital Fiscal
Oversight
General
Admin
Admin.

Management
General Fiscal
Management
Capital Fiscal
Management
Central Services in the General Fund
100 GENERAL FUND 1001 City Council 1 Allocated Indirect Services 100 GENERAL FUND 1101 City Manager 1 Allocated Indirect Services 100 GENERAL FUND 1201 City Attorney 1 Allocated Indirect Services 100 GENERAL FUND 1301 City Clerk 1 Allocated Indirect Services 100 GENERAL FUND 14xx Finance / Admin. Services - All General Fund 1 Allocated Indirect Services 100 GENERAL FUND 23xx Engineering - All General Fund Programs 1 Allocated Indirect Services 100 GENERAL FUND 4102 Public Works - Corporation Yard 1 Allocated Indirect Services 100 GENERAL FUND 4106 Public Works - Governmental Building 1 Allocated Indirect Services 100 GENERAL FUND 0000 Non Departmental 1 Allocated Indirect Services Total Allocation of Central Services Expense
to Direct Service Units
Fund Organization Classification for Indirect Rates City Council City Manager Direct Services in All Funds
0 Unclassified / CIP, ISF, Transfer -$ -$ $ 3,114 $ 35,835 -$ -$ $ 13,298 $ 155,621 2 General Government -$ $ 65 $ 2,743 -$ -$ $ 281 $ 11,714 -$ 3 Planning -$ $ 2,786 $ 2,183 -$ -$ $ 12,041 $ 9,320 -$ 4 Building -$ $ 651 $ 732 -$ -$ $ 2,815 $ 3,126 -$
5 Engineering -$ -$ $ 625 -$ -$ -$ $ 2,667 -$
6 Fire & Prevention -$ $ 3,452 $ 3,764 -$ -$ $ 14,916 $ 16,075 -$ 7 Police -$ $ 27,800 $ 12,285 -$ -$ $ 120,132 $ 52,459 -$ 8 Public Works -$ $ 6,010 $ 3,552 -$ -$ $ 25,973 $ 15,167 -$ 9 Public Works - Community Facilities -$ $ 1,089 $ 856 -$ -$ $ 4,708 $ 3,654 -$ 10 Public Works - Water Utility -$ $ 3,750 $ 5,240 $ 33,009 -$ $ 16,205 $ 22,378 $ 143,351 11 Public Works - Wastewater Utility -$ $ 3,416 $ 9,104 $ 33,883 -$ $ 14,762 $ 38,876 $ 147,143 Grand Total $ $ 49,021 $ 44,197 $ 102,727 $ $ 211,831 $ 188,735 $ 446,115

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Agenda Item Number 9
City Council Meeting Packet for October 20, 2026

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Agenda Item Number 9
Exhibit 9a
CITY OF SEBASTOPOL | INDIRECT COST ALLOCATION PLAN FOR FY 2026-27 BUDGET No. Title No. Title No. Title
Central Services in the General Fund
100 GENERAL FUND 1001 City Council 1 Allocated Indirect Services 100 GENERAL FUND 1101 City Manager 1 Allocated Indirect Services 100 GENERAL FUND 1201 City Attorney 1 Allocated Indirect Services 100 GENERAL FUND 1301 City Clerk 1 Allocated Indirect Services 100 GENERAL FUND 14xx Finance / Admin. Services - All General Fund 1 Allocated Indirect Services 100 GENERAL FUND 23xx Engineering - All General Fund Programs 1 Allocated Indirect Services 100 GENERAL FUND 4102 Public Works - Corporation Yard 1 Allocated Indirect Services 100 GENERAL FUND 4106 Public Works - Governmental Building 1 Allocated Indirect Services 100 GENERAL FUND 0000 Non Departmental 1 Allocated Indirect Services Direct Services in All Funds
0 Unclassified / CIP, ISF, Transfer
2 General Government
3 Planning
4 Building
5 Engineering
6 Fire & Prevention
7 Police
8 Public Works
9 Public Works - Community Facilities
10 Public Works - Water Utility
11 Public Works - Wastewater Utility
Total Allocation of Central Services Expense
to Direct Service Units
Fund Organization
General
Admin
Citywide
Service Not in Use GeneralAdmin
Citywide
Service Not in Use
-$ -$ -$ -$ $ 21,861 -$
-$ -$ -$ -$ $ 19,256 -$
-$ -$ -$ -$ $ 15,321 -$
-$ -$ -$ -$ $ 5,140 -$
-$ -$ -$ -$ $ 4,385 -$
-$ -$ -$ -$ $ 26,426 -$
-$ -$ -$ -$ $ 86,237 -$
-$ -$ -$ -$ $ 24,932 -$
-$ -$ -$ -$ $ 6,007 -$
-$ -$ -$ -$ $ 36,787 -$
-$ -$ -$ -$ $ 63,907 -$
Classification for Indirect Rates City Attorney City Clerk Grand Total $ $ $ $ $ 310,258 $

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Agenda Item Number 9
City Council Meeting Packet for October 20, 2026

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Agenda Item Number 9
Exhibit 9a
CITY OF SEBASTOPOL | INDIRECT COST ALLOCATION PLAN FOR FY 2026-27 BUDGET No. Title No. Title No. Title
Central Services in the General Fund
100 GENERAL FUND 1001 City Council 1 Allocated Indirect Services 100 GENERAL FUND 1101 City Manager 1 Allocated Indirect Services 100 GENERAL FUND 1201 City Attorney 1 Allocated Indirect Services 100 GENERAL FUND 1301 City Clerk 1 Allocated Indirect Services 100 GENERAL FUND 14xx Finance / Admin. Services - All General Fund 1 Allocated Indirect Services 100 GENERAL FUND 23xx Engineering - All General Fund Programs 1 Allocated Indirect Services 100 GENERAL FUND 4102 Public Works - Corporation Yard 1 Allocated Indirect Services 100 GENERAL FUND 4106 Public Works - Governmental Building 1 Allocated Indirect Services 100 GENERAL FUND 0000 Non Departmental 1 Allocated Indirect Services Direct Services in All Funds
0 Unclassified / CIP, ISF, Transfer
2 General Government
3 Planning
4 Building
5 Engineering
6 Fire & Prevention
7 Police
8 Public Works
9 Public Works - Community Facilities
10 Public Works - Water Utility
11 Public Works - Wastewater Utility
Total Allocation of Central Services Expense
to Direct Service Units
Fund Organization
General
Admin
Citywide
Accounting /
Budget
Utility Billing
& Support Payroll AccountsPayable
Accounts
Receivable /
Cash Receipts
Information
Technology
Mgmt.

Human
Resources
-$ $ 37,725 -$ -$ $ 170 -$ -$ -$
-$ $ 33,230 -$ $ 111 -$ $ 1,004 $ 463 $ 138
-$ $ 26,440 -$ $ 4,736 $ 8,847 $ 188 $ 5,555 $ 5,892
-$ $ 8,869 -$ $ 1,107 $ 4,041 $ 2,192 $ 2,778 $ 1,377
-$ $ 7,566 -$ -$ -$ $ 223 $ 1,829 -$
-$ $ 45,603 -$ $ 5,867 $ 16,105 $ 219 $ 63,886 $ 7,298
-$ $ 148,819 -$ $ 47,250 $ 7,919 $ 500 $ 42,590 $ 58,781 -$ $ 43,025 -$ $ 10,215 $ 11,908 $ 46 $ 10,648 $ 12,709 -$ $ 10,366 -$ $ 1,852 $ 3,065 -$ $ 1,574 $ 2,304
-$ $ 63,483 $ 162,058 $ 6,374 $ 11,064 $ 16,880 $ 5,555 $ 7,929 -$ $ 110,284 $ 162,058 $ 5,806 $ 3,032 $ 22,647 $ 4,685 $ 7,223 Classification for Indirect Rates Finance / Admin. Services - All General Fund Grand Total $ $ 535,409 $ 324,116 $ 83,317 $ 66,152 $ 43,899 $ 139,562 $ 103,651

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Agenda Item Number 9
City Council Meeting Packet for October 20, 2026

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Agenda Item Number 9
Exhibit 9a
CITY OF SEBASTOPOL | INDIRECT COST ALLOCATION PLAN FOR FY 2026-27 BUDGET No. Title No. Title No. Title
Central Services in the General Fund
100 GENERAL FUND 1001 City Council 1 Allocated Indirect Services 100 GENERAL FUND 1101 City Manager 1 Allocated Indirect Services 100 GENERAL FUND 1201 City Attorney 1 Allocated Indirect Services 100 GENERAL FUND 1301 City Clerk 1 Allocated Indirect Services 100 GENERAL FUND 14xx Finance / Admin. Services - All General Fund 1 Allocated Indirect Services 100 GENERAL FUND 23xx Engineering - All General Fund Programs 1 Allocated Indirect Services 100 GENERAL FUND 4102 Public Works - Corporation Yard 1 Allocated Indirect Services 100 GENERAL FUND 4106 Public Works - Governmental Building 1 Allocated Indirect Services 100 GENERAL FUND 0000 Non Departmental 1 Allocated Indirect Services Direct Services in All Funds
0 Unclassified / CIP, ISF, Transfer
2 General Government
3 Planning
4 Building
5 Engineering
6 Fire & Prevention
7 Police
8 Public Works
9 Public Works - Community Facilities
10 Public Works - Water Utility
11 Public Works - Wastewater Utility
Total Allocation of Central Services Expense
to Direct Service Units
Fund Organization
General
Admin
Technical
Support - Public
Projects
Not in Use
-$ $ 79,686 -$
-$ -$ -$
-$ -$ -$
-$ -$ -$
-$ -$ -$
-$ -$ -$
-$ -$ -$
-$ -$ -$
-$ -$ -$
-$ $ 73,404 -$
-$ $ 75,345 -$
Classification for Indirect Rates Engineering - All General Fund Programs Grand Total $ $ 228,435 $

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Agenda Item Number 9
City Council Meeting Packet for October 20, 2026

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- -
Agenda Item Number 9
Exhibit 9a
CITY OF SEBASTOPOL | INDIRECT COST ALLOCATION PLAN FOR FY 2026-27 BUDGET No. Title No. Title No. Title
Central Services in the General Fund
100 GENERAL FUND 1001 City Council 1 Allocated Indirect Services 100 GENERAL FUND 1101 City Manager 1 Allocated Indirect Services 100 GENERAL FUND 1201 City Attorney 1 Allocated Indirect Services 100 GENERAL FUND 1301 City Clerk 1 Allocated Indirect Services 100 GENERAL FUND 14xx Finance / Admin. Services - All General Fund 1 Allocated Indirect Services 100 GENERAL FUND 23xx Engineering - All General Fund Programs 1 Allocated Indirect Services 100 GENERAL FUND 4102 Public Works - Corporation Yard 1 Allocated Indirect Services 100 GENERAL FUND 4106 Public Works - Governmental Building 1 Allocated Indirect Services 100 GENERAL FUND 0000 Non Departmental 1 Allocated Indirect Services Direct Services in All Funds
0 Unclassified / CIP, ISF, Transfer
2 General Government
3 Planning
4 Building
5 Engineering
6 Fire & Prevention
7 Police
8 Public Works
9 Public Works - Community Facilities
10 Public Works - Water Utility
11 Public Works - Wastewater Utility
Total Allocation of Central Services Expense
to Direct Service Units
Fund Organization
General
Admin
Dept. Admin.

Management
Dept. Fiscal
Management
General
Admin
Govt. Facility
Maintenance Not in Use
-$ -$ -$ -$ -$ -$
-$ -$ -$ -$ $ 546 -$
-$ -$ -$ -$ $ 6,555 -$
-$ -$ -$ -$ $ 3,278 -$
-$ -$ -$ -$ $ 2,158 -$
-$ -$ -$ -$ $ 75,387 -$
-$ -$ -$ -$ $ 50,258 -$
-$ $ 122,877 $ 95,608 -$ $ 12,564 -$
-$ $ 18,164 $ 23,035 -$ $ 1,857 -$
-$ $ 64,110 $ 85,667 -$ $ 6,555 -$
-$ $ 54,066 $ 48,414 -$ $ 5,528 -$
Classification for Indirect Rates Public Works Corporation Yard Public Works Governmental Building Grand Total $ $ 259,218 $ 252,724 $ $ 164,687 $

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Agenda Item Number 9
City Council Meeting Packet for October 20, 2026

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Agenda Item Number 9
Exhibit 9a
CITY OF SEBASTOPOL | INDIRECT COST ALLOCATION PLAN FOR FY 2026-27 BUDGET No. Title No. Title No. Title
Central Services in the General Fund
100 GENERAL FUND 1001 City Council 1 Allocated Indirect Services 100 GENERAL FUND 1101 City Manager 1 Allocated Indirect Services 100 GENERAL FUND 1201 City Attorney 1 Allocated Indirect Services 100 GENERAL FUND 1301 City Clerk 1 Allocated Indirect Services 100 GENERAL FUND 14xx Finance / Admin. Services - All General Fund 1 Allocated Indirect Services 100 GENERAL FUND 23xx Engineering - All General Fund Programs 1 Allocated Indirect Services 100 GENERAL FUND 4102 Public Works - Corporation Yard 1 Allocated Indirect Services 100 GENERAL FUND 4106 Public Works - Governmental Building 1 Allocated Indirect Services 100 GENERAL FUND 0000 Non Departmental 1 Allocated Indirect Services Direct Services in All Funds
0 Unclassified / CIP, ISF, Transfer
2 General Government
3 Planning
4 Building
5 Engineering
6 Fire & Prevention
7 Police
8 Public Works
9 Public Works - Community Facilities
10 Public Works - Water Utility
11 Public Works - Wastewater Utility
Total Allocation of Central Services Expense
to Direct Service Units
Fund Organization
General
Admin
Personnel
Services
Info. Tech.

Services Fiscal Services FacilitiesServices
Admin.

Services
-$
-$
-$
-$
-$
-$
-$
-$
-$
-$ -$ -$ -$ -$ -$ $ 347,309
-$ $ 114 $ 33 -$ -$ -$ $ 69,699
-$ $ 4,890 $ 391 -$ -$ -$ $ 105,146
-$ $ 1,143 $ 196 -$ -$ -$ $ 37,445
-$ -$ $ 129 -$ -$ -$ $ 19,581
-$ $ 6,058 $ 4,499 -$ -$ -$ $ 289,554
-$ $ 48,790 $ 3,000 -$ -$ -$ $ 706,820
-$ $ 10,548 $ 750 -$ -$ -$ $ 406,533
-$ $ 1,912 $ 111 -$ -$ -$ $ 80,554
-$ $ 6,581 $ 391 -$ -$ -$ $ 770,772
-$ $ 5,995 $ 330 -$ -$ -$ $ 816,504
Classification for Indirect Rates Non Departmental
Grand Total
Allocation
Grand Total $ $ 86,033 $ 9,829 $ $ $ $ 3,649,917
Reconciles to First Step Total on Exhibit 6? Yes

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Agenda Item Number 9
City Council Meeting Packet for October 20, 2026

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Agenda Item Number 9
Exhibit 9b
CITY OF SEBASTOPOL | INDIRECT COST ALLOCATION PLAN FOR FY 2026-27 BUDGET No. Title No. Title No. Title City Council City Manager City Attorney City Clerk Finance /
Admin.

Services - All
General Fund
Engineering -
All General
Fund
Programs
Public Works -
Corporation
Yard
Public Works -
Governmental
Building
Non
Departmental
Total Allocation of Central Services Expense to Direct Service Units:

Summary by Cost Center, Total Cost ($)
Fund Organization Classification for Indirect Rates Total Organization Grand Total
Allocation
Central Services in the General Fund
100 GENERAL FUND 1001 City Council 1 Allocated Indirect Services -$ 100 GENERAL FUND 1101 City Manager 1 Allocated Indirect Services -$ 100 GENERAL FUND 1201 City Attorney 1 Allocated Indirect Services -$ 100 GENERAL FUND 1301 City Clerk 1 Allocated Indirect Services -$ 100 GENERAL FUND 14xx Finance / Admin. Services - All General Fund 1 Allocated Indirect Services -$ 100 GENERAL FUND 23xx Engineering - All General Fund Programs 1 Allocated Indirect Services -$ 100 GENERAL FUND 4102 Public Works - Corporation Yard 1 Allocated Indirect Services -$ 100 GENERAL FUND 4106 Public Works - Governmental Building 1 Allocated Indirect Services -$ 100 GENERAL FUND 0000 Non Departmental 1 Allocated Indirect Services -$ Direct Services in All Funds
0 Unclassified / CIP, ISF, Transfer $ 38,949 $ 168,919 -$ $ 21,861 $ 37,894 $ 79,686 -$ -$ -$ $ 347,309 2 General Government $ 2,808 $ 11,995 -$ $ 19,256 $ 34,946 -$ -$ $ 546 $ 147 $ 69,699 3 Planning $ 4,969 $ 21,361 -$ $ 15,321 $ 51,658 -$ -$ $ 6,555 $ 5,282 $ 105,146 4 Building $ 1,384 $ 5,941 -$ $ 5,140 $ 20,364 -$ -$ $ 3,278 $ 1,339 $ 37,445 5 Engineering $ 625 $ 2,667 -$ $ 4,385 $ 9,618 -$ -$ $ 2,158 $ 129 $ 19,581 6 Fire & Prevention $ 7,216 $ 30,991 -$ $ 26,426 $ 138,978 -$ -$ $ 75,387 $ 10,557 $ 289,554 7 Police $ 40,085 $ 172,591 -$ $ 86,237 $ 305,859 -$ -$ $ 50,258 $ 51,789 $ 706,820 8 Public Works $ 9,562 $ 41,139 -$ $ 24,932 $ 88,551 -$ $ 218,485 $ 12,564 $ 11,298 $ 406,533 9 Public Works - Community Facilities $ 1,945 $ 8,362 -$ $ 6,007 $ 19,160 -$ $ 41,199 $ 1,857 $ 2,023 $ 80,554 10 Public Works - Water Utility $ 42,000 $ 181,933 -$ $ 36,787 $ 273,343 $ 73,404 $ 149,777 $ 6,555 $ 6,973 $ 770,772 11 Public Works - Wastewater Utility $ 46,403 $ 200,781 -$ $ 63,907 $ 315,734 $ 75,345 $ 102,480 $ 5,528 $ 6,325 $ 816,504 Grand Total $ 3,649,917
Reconciles to First Step Total on Exhibit 6? Yes

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City Council Meeting Packet for October 20, 2026

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Summary by Cost Center, Percentage of Total Cost (%)
Fund Organization Classification for Indirect Rates Total Organization Grand Total
Allocation
Central Services in the General Fund
100 GENERAL FUND 1001 City Council 1 Allocated Indirect Services 0.0% 100 GENERAL FUND 1101 City Manager 1 Allocated Indirect Services 0.0% 100 GENERAL FUND 1201 City Attorney 1 Allocated Indirect Services 0.0% 100 GENERAL FUND 1301 City Clerk 1 Allocated Indirect Services 0.0% 100 GENERAL FUND 14xx Finance / Admin. Services - All General Fund 1 Allocated Indirect Services 0.0% 100 GENERAL FUND 23xx Engineering - All General Fund Programs 1 Allocated Indirect Services 0.0% 100 GENERAL FUND 4102 Public Works - Corporation Yard 1 Allocated Indirect Services 0.0% 100 GENERAL FUND 4106 Public Works - Governmental Building 1 Allocated Indirect Services 0.0% 100 GENERAL FUND 0000 Non Departmental 1 Allocated Indirect Services 0.0% Direct Services in All Funds
0 Unclassified / CIP, ISF, Transfer 11.2% 48.6% 0.0% 6.3% 10.9% 22.9% 0.0% 0.0% 0.0% 100.0% 2 General Government 4.0% 17.2% 0.0% 27.6% 50.1% 0.0% 0.0% 0.8% 0.2% 100.0% 3 Planning 4.7% 20.3% 0.0% 14.6% 49.1% 0.0% 0.0% 6.2% 5.0% 100.0% 4 Building 3.7% 15.9% 0.0% 13.7% 54.4% 0.0% 0.0% 8.8% 3.6% 100.0% 5 Engineering 3.2% 13.6% 0.0% 22.4% 49.1% 0.0% 0.0% 11.0% 0.7% 100.0% 6 Fire & Prevention 2.5% 10.7% 0.0% 9.1% 48.0% 0.0% 0.0% 26.0% 3.6% 100.0% 7 Police 5.7% 24.4% 0.0% 12.2% 43.3% 0.0% 0.0% 7.1% 7.3% 100.0% 8 Public Works 2.4% 10.1% 0.0% 6.1% 21.8% 0.0% 53.7% 3.1% 2.8% 100.0% 9 Public Works - Community Facilities 2.4% 10.4% 0.0% 7.5% 23.8% 0.0% 51.1% 2.3% 2.5% 100.0% 10 Public Works - Water Utility 5.4% 23.6% 0.0% 4.8% 35.5% 9.5% 19.4% 0.9% 0.9% 100.0% 11 Public Works - Wastewater Utility 5.7% 24.6% 0.0% 7.8% 38.7% 9.2% 12.6% 0.7% 0.8% 100.0% Grand Total

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City Council Meeting Packet for October 20, 2026

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Agenda Item Number 9
Exhibit 10
CITY OF SEBASTOPOL | INDIRECT COST ALLOCATION PLAN FOR FY 2026-27 BUDGET Central Services Indirect Rate on Direct Salary Expense Cost Basis
Allocable Central Services Expense $ 3,649,917
less: Functions Not Appropriate for Indirect Rate
Finance / Admin. Services: Utility Billing & Support $ (304,493) Engineering: Technical Support - Public Projects $ (212,414) Public Works Corporation Yard: Department Administration $ (491,133) Net Cost Basis $ 2,641,877
Rate Basis
Citywide Expense Used as Rate Basis from Actual 2024-25:
4010 Salaries - Full Time $ 4,695,041
4011 Salaries - Part-Time $ 99,626
less: Rate Basis Included in Allocable Central Services City Council $ (18,300)
City Manager $ (196,945)
City Attorney $ -
City Clerk $ (205,578)
Finance / Admin. Services - All General Fund $ (409,404) Engineering - All General Fund Programs $ (67,064)
Public Works - Corporation Yard $ (136,437)
Public Works - Governmental Building $ (15,231)
Non Departmental $ -
Net Rate Basis $ 3,745,708
Indirect for Central Services, Composite for City 70.5%

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Agenda Item Number 9
City Council Meeting Packet for October 20, 2026

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Agenda Item Number 9
Exhibit 10
CITY OF SEBASTOPOL | INDIRECT COST ALLOCATION PLAN FOR FY 2026-27 BUDGET Central Services Indirect Rate on Direct Expenditure
Cost Basis
Allocable Central Services Expense (Net Cost Basis Above) $ 2,641,877 plus: Additional Adjustments
None $ -
Net Cost Basis $ 2,641,877
Rate Basis
Total Expenditures (Operations and Capital), All Funds | Actual 2024-25 $ 25,683,815 less: Exclusions
Debt Service $ (874,666)
Capital $ (586,071)
Depreciation $ (1,414,474)
Transfers & Financing Uses $ (842,911)
Other Adjustment $ -
Allocated Citywide Indirect Services (Net Cost Basis from Above) $ (2,641,877) [other adjustment - describe] $ -
Net Rate Basis $ 19,323,816
Indirect for Central Services, Composite for City 13.7%

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Agenda Item Number 9
City Council Meeting Packet for October 20, 2026

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Agenda Item Number 9
Exhibit 11a
CITY OF SEBASTOPOL | INDIRECT COST ALLOCATION PLAN FOR FY 2026-27 BUDGET Indirect Rate Bases by Organizational Unit
No. Title No. Title No. Title Salaries - Full
Time
Salaries - PartTime Total Basis Total
Expenditures
less:

Adjustments Total Basis
Direct Services in the General Fund
100 GENERAL FUND 1001 City Council 2 General Government -$ -$ -$ $ 4,300 -$ $ 4,300 100 GENERAL FUND 1101 City Manager 2 General Government -$ -$ -$ $ 500 -$ $ 500 100 GENERAL FUND 1201 City Attorney 2 General Government -$ -$ -$ $ 646,785 -$ $ 646,785 100 GENERAL FUND 1301 City Clerk 2 General Government -$ -$ -$ $ 125,764 -$ $ 125,764 100 GENERAL FUND 14xx Finance / Admin. Services - All General Fund 2 General Government -$ -$ -$ $ 32,013 -$ $ 32,013 100 GENERAL FUND 23xx Engineering - All General Fund Programs 5 Engineering -$ -$ -$ $ 258,837 -$ $ 258,837 100 GENERAL FUND 4102 Public Works - Corporation Yard 8 Public Works -$ -$ -$ $ 21,042 -$ $ 21,042 100 GENERAL FUND 4106 Public Works - Governmental Building 8 Public Works -$ -$ -$ $ 56,500 -$ $ 56,500 100 GENERAL FUND 0000 Non Departmental 2 General Government -$ -$ -$ $ 300,000 -$ $ 300,000 100 GENERAL FUND 2102 Planning 3 Planning $ 212,795 $ 19,565 $ 232,360 $ 657,815 -$ $ 657,815 100 GENERAL FUND 2202 Building 4 Building $ 46,982 -$ $ 46,982 $ 303,081 -$ $ 303,081 100 GENERAL FUND 3102 Fire & Prevention 6 Fire & Prevention $ 227,168 -$ $ 227,168 $ 1,490,275 -$ $ 1,490,275 100 GENERAL FUND 3114 Fire & Prevention 6 Fire & Prevention -$ -$ -$ $ 2,001 -$ $ 2,001 100 GENERAL FUND 3202 Police 7 Police $ 1,944,417 $ 44,261 $ 1,988,677 $ 5,123,538 $ (70,867) $ 5,052,671 100 GENERAL FUND 3213 Police 7 Police -$ -$ -$ -$ -$ -$ 100 GENERAL FUND 4002 Senior Center 9 Public Works - Community Facilities $ 4,801 -$ $ 4,801 $ 42,620 $ (16,475) $ 26,145 100 GENERAL FUND 4103 Public Works - Streets Maintenance 8 Public Works $ 52,206 -$ $ 52,206 $ 353,356 -$ $ 353,356 100 GENERAL FUND 4104 Public Works - Parks & Landscaping 8 Public Works $ 176,635 -$ $ 176,635 $ 591,240 -$ $ 591,240 100 GENERAL FUND 4105 Public Works - Parking Lots 8 Public Works $ 33,025 -$ $ 33,025 $ 138,446 -$ $ 138,446 100 GENERAL FUND 4107 Public Works - [Division Title] 8 Public Works $ 7,763 $ 598 $ 8,361 $ 11,116 -$ $ 11,116 100 GENERAL FUND 4202 Public Works - Community Center 9 Public Works - Community Facilities $ 21,840 -$ $ 21,840 $ 172,309 -$ $ 172,309 100 GENERAL FUND 4203 Public Works - Community Center 9 Public Works - Community Facilities -$ -$ -$ -$ -$ -$ 100 GENERAL FUND 4204 Public Works - Community Center 9 Public Works - Community Facilities -$ -$ -$ -$ -$ -$ 100 GENERAL FUND 4302 Public Works - Ives Pool 9 Public Works - Community Facilities $ 24,182 -$ $ 24,182 $ 212,031 $ (55,877) $ 156,154 100 GENERAL FUND 9971 Debt Service 0 Unclassified / CIP, ISF, Transfer -$ -$ -$ $ 119,224 $ (119,224) -$ 100 GENERAL FUND 9972 Debt Service 0 Unclassified / CIP, ISF, Transfer -$ -$ -$ $ 64,585 $ (64,585) -$ 100 GENERAL FUND 9974 Debt Service 0 Unclassified / CIP, ISF, Transfer -$ -$ -$ -$ -$ -$ 100 GENERAL FUND 9980 Debt Service 0 Unclassified / CIP, ISF, Transfer -$ -$ -$ $ 86,169 $ (86,169) -$ Direct Services in Other Funds
103 Buildings,Facilities & Infrast 0000 Non Departmental 0 Unclassified / CIP, ISF, Transfer -$ -$ -$ $ 61,239 $ (61,239) -$ Fund Organization Indirect Rate Method: Direct Cost Classification for Indirect Rates (i.e., Department Description) Indirect Rate Method: Labor Cost

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Agenda Item Number 9
City Council Meeting Packet for October 20, 2026

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Adjustments Total Basis
Fund Organization Indirect Rate Method: Direct Cost Classification for Indirect Rates (i.e., Department Description) Indirect Rate Method: Labor Cost 103 Buildings,Facilities & Infrast 1001 City Council 2 General Government -$ -$ -$ -$ -$ -$ 103 Buildings,Facilities & Infrast 3202 Police 7 Police -$ -$ -$ -$ -$ -$ 103 Buildings,Facilities & Infrast 4002 Senior Center 9 Public Works - Community Facilities -$ -$ -$ -$ -$ -$ 103 Buildings,Facilities & Infrast 4102 Public Works - Corporation Yard 8 Public Works -$ -$ -$ -$ -$ -$ 103 Buildings,Facilities & Infrast 4106 Public Works - Governmental Building 8 Public Works -$ -$ -$ -$ -$ -$ 103 Buildings,Facilities & Infrast 4202 PW-Community Center 9 Public Works - Community Facilities -$ -$ -$ -$ -$ -$ 103 Buildings,Facilities & Infrast 4302 PW-Ives Pool 9 Public Works - Community Facilities -$ -$ -$ -$ -$ -$ 104 Equip,Technology & Vehicles 0000 Non Departmental 6 Fire & Prevention -$ -$ -$ -$ -$ -$ 104 Equip,Technology & Vehicles 3102 Fire & Prevention 6 Fire & Prevention -$ -$ -$ -$ -$ -$ 104 Equip,Technology & Vehicles 3202 Police 7 Police -$ -$ -$ -$ -$ -$ 104 Equip,Technology & Vehicles 4102 Public Works - Corporation Yard 8 Public Works -$ -$ -$ -$ -$ -$ 105 Pension & OPEB Fund 1401 Finance 2 General Government -$ -$ -$ $ 12,775 -$ $ 12,775 120 Tree Replacement Fund 0000 Non Departmental 0 Unclassified / CIP, ISF, Transfer -$ -$ -$ -$ -$ -$ 120 Tree Replacement Fund 2102 Planning 3 Planning -$ -$ -$ -$ -$ -$ 120 Tree Replacement Fund 4103 Public Works - Streets 8 Public Works -$ -$ -$ -$ -$ -$ 120 Tree Replacement Fund 4104 Public Works - Parks & Landscaping 8 Public Works -$ -$ -$ -$ -$ -$ 122 PermitTechnology Fund 2102 Planning 3 Planning -$ -$ -$ $ 21,185 -$ $ 21,185 122 PermitTechnology Fund 2202 Building 4 Building -$ -$ -$ $ 327 -$ $ 327 123 Street Pavement Reserve 0000 Non Departmental 0 Unclassified / CIP, ISF, Transfer -$ -$ -$ $ 8,712 $ (8,712) -$ 123 Street Pavement Reserve 2350 Engineering 5 Engineering -$ -$ -$ -$ -$ -$ 123 Street Pavement Reserve 2351 Engineering 5 Engineering -$ -$ -$ -$ -$ -$ 124 Measure T& Q (Y) 4103 Public Works - Streets 8 Public Works -$ -$ -$ -$ -$ -$ 125 Vehicle Abatement 0000 Non Departmental 0 Unclassified / CIP, ISF, Transfer -$ -$ -$ $ 4,500 $ (4,500) -$ 126 Tobacco Mgmnt Program Fund 3202 Police 7 Police -$ -$ -$ $ 1,964 -$ $ 1,964 127 Flood Mitigation Fund 0000 Non Departmental 0 Unclassified / CIP, ISF, Transfer -$ -$ -$ $ 65,309 $ (65,309) -$ 127 Flood Mitigation Fund 4202 PW-Community Center 9 Public Works - Community Facilities -$ -$ -$ -$ -$ -$ 128 Police Endowment Fund 0000 Non Departmental 0 Unclassified / CIP, ISF, Transfer -$ -$ -$ $ 46,008 $ (46,008) -$ 128 Police Endowment Fund 3202 Police 7 Police -$ -$ -$ $ 82,005 $ (71,702) $ 10,303 200 Gas Tax Fund 4103 Public Works - Streets 8 Public Works $ 95,827 -$ $ 95,827 $ 185,773 -$ $ 185,773 201 Measure M-Road Mtn 0000 Non Departmental 0 Unclassified / CIP, ISF, Transfer -$ -$ -$ $ 1,328 $ (1,328) -$ 202 Measure M-ParkImpr Fund 0000 Non Departmental 0 Unclassified / CIP, ISF, Transfer -$ -$ -$ $ 78,583 $ (78,583) -$ 203 Art In-Lieu Fund 0000 Non Departmental 0 Unclassified / CIP, ISF, Transfer -$ -$ -$ $ 7,011 -$ $ 7,011

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Adjustments Total Basis
Fund Organization Indirect Rate Method: Direct Cost Classification for Indirect Rates (i.e., Department Description) Indirect Rate Method: Labor Cost 203 Art In-Lieu Fund 2102 Planning 3 Planning -$ -$ -$ $ 28,500 -$ $ 28,500 203 Art In-Lieu Fund 4104 Public Works - Parks & Landscaping 8 Public Works -$ -$ -$ $ 188 -$ $ 188 204 Housing Linkage Fee Fund 0000 Non Departmental 0 Unclassified / CIP, ISF, Transfer -$ -$ -$ -$ -$ -$ 205 Inclusionary Housing Fund 0000 Non Departmental 0 Unclassified / CIP, ISF, Transfer -$ -$ -$ -$ -$ -$ 207 Downtown Improvement District Fund 0000 Non Departmental 0 Unclassified / CIP, ISF, Transfer -$ -$ -$ $ 7,300 -$ $ 7,300 208 General Plan Update Fund 0000 Non Departmental 0 Unclassified / CIP, ISF, Transfer -$ -$ -$ -$ -$ -$ 208 General Plan Update Fund 2102 Planning 3 Planning -$ -$ -$ -$ -$ -$ 209 SLESF Grant Fund 3202 Police 7 Police -$ -$ -$ $ 120,000 $ (120,000) -$ 211 Transportation Grants 0000 Non Departmental 0 Unclassified / CIP, ISF, Transfer -$ -$ -$ $ 64,907 $ (64,907) -$ 211 Transportation Grants 2102 Planning 3 Planning -$ -$ -$ $ 185,582 -$ $ 185,582 212 Park In-Lieu Fee Fund 0000 Non Departmental 0 Unclassified / CIP, ISF, Transfer -$ -$ -$ $ 2,673 $ (2,673) -$ 212 Park In-Lieu Fee Fund 2102 Planning 3 Planning -$ -$ -$ -$ -$ -$ 212 Park In-Lieu Fee Fund 9971 Debt Service 0 Unclassified / CIP, ISF, Transfer -$ -$ -$ $ 57,404 $ (57,404) -$ 213 Traffic Impact Fee Fund 0000 Non Departmental 0 Unclassified / CIP, ISF, Transfer -$ -$ -$ $ 52,982 $ (52,982) -$ 213 Traffic Impact Fee Fund 2102 Planning 3 Planning -$ -$ -$ $ 1,056 -$ $ 1,056 215 Street Lighting Assess District 1401 Finance 2 General Government $ 10,075 -$ $ 10,075 $ 14,635 -$ $ 14,635 215 Street Lighting Assess District 4103 Public Works - Streets 8 Public Works $ 9,004 -$ $ 9,004 $ 114,187 -$ $ 114,187 216 CDBG ADA Transitional Plan 0000 Non Departmental 0 Unclassified / CIP, ISF, Transfer -$ -$ -$ $ 69,007 $ (69,007) -$ 217 Road Mtn & Rehab (SB1) 0000 Non Departmental 0 Unclassified / CIP, ISF, Transfer -$ -$ -$ $ 25,982 $ (25,982) -$ 217 Road Mtn & Rehab (SB1) 2302 Engineering 5 Engineering -$ -$ -$ -$ -$ -$ 218 Park Land & Development Fee 0000 Non Departmental 0 Unclassified / CIP, ISF, Transfer -$ -$ -$ -$ -$ -$ 219 Gen Government Facilities Fee 0000 Non Departmental 0 Unclassified / CIP, ISF, Transfer -$ -$ -$ -$ -$ -$ 220 Fire Facilities Fee 0000 Non Departmental 0 Unclassified / CIP, ISF, Transfer -$ -$ -$ -$ -$ -$ 221 Stormwater Facilities Fee 0000 Non Departmental 0 Unclassified / CIP, ISF, Transfer -$ -$ -$ -$ -$ -$ 233 COMMUNITY FUND 0000 Non Departmental 0 Unclassified / CIP, ISF, Transfer -$ -$ -$ -$ -$ -$ 240 BSCC - Wellness/Mental Health 3202 Police 7 Police -$ -$ -$ -$ -$ -$ 245 OTS Police Fed Grants 3202 Police 7 Police -$ -$ -$ $ 25,990 -$ $ 25,990 247 Suppl Plng Grant (SB2&LEAP) 0000 Non Departmental 0 Unclassified / CIP, ISF, Transfer -$ -$ -$ -$ -$ -$ 247 Suppl Plng Grant (SB2&LEAP) 2102 Planning 3 Planning -$ -$ -$ $ 10,330 -$ $ 10,330 248 Measure H-Fire Sales Tax 0000 Non Departmental 0 Unclassified / CIP, ISF, Transfer -$ -$ -$ -$ -$ -$ 248 Measure H-Fire Sales Tax 3102 Fire & Prevention 6 Fire & Prevention $ 2,658 -$ $ 2,658 $ 67,757 -$ $ 67,757 248 Measure H-Fire Sales Tax 9974 Debt Service 0 Unclassified / CIP, ISF, Transfer -$ -$ -$ $ 469,386 $ (469,386) -$

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Adjustments Total Basis
Fund Organization Indirect Rate Method: Direct Cost Classification for Indirect Rates (i.e., Department Description) Indirect Rate Method: Labor Cost 401 Woodstone Ctr Assess District DS 0000 Non Departmental 0 Unclassified / CIP, ISF, Transfer -$ -$ -$ -$ -$ -$ 401 Woodstone Ctr Assess District DS 9970 Debt Service 0 Unclassified / CIP, ISF, Transfer -$ -$ -$ -$ -$ -$ 402 CREBS DS Fund 9973 Debt Service 0 Unclassified / CIP, ISF, Transfer -$ -$ -$ -$ -$ -$ 500 WATER FUND 0000 Non Departmental 10 Public Works - Water Utility -$ -$ -$ $ 903,093 $ (50,230) $ 852,863 500 WATER FUND 1001 City Council 10 Public Works - Water Utility -$ -$ -$ -$ -$ -$ 500 WATER FUND 1101 City Manager 10 Public Works - Water Utility -$ -$ -$ -$ -$ -$ 500 WATER FUND 1201 City Attorney 10 Public Works - Water Utility -$ -$ -$ -$ -$ -$ 500 WATER FUND 1301 City Clerk 10 Public Works - Water Utility -$ -$ -$ -$ -$ -$ 500 WATER FUND 1401 Finance 10 Public Works - Water Utility -$ -$ -$ $ 27,421 -$ $ 27,421 500 WATER FUND 2102 Planning 10 Public Works - Water Utility -$ -$ -$ -$ -$ -$ 500 WATER FUND 2202 Building 10 Public Works - Water Utility -$ -$ -$ -$ -$ -$ 500 WATER FUND 2302 Engineering 10 Public Works - Water Utility -$ -$ -$ -$ -$ -$ 500 WATER FUND 3102 Fire & Prevention 10 Public Works - Water Utility -$ -$ -$ -$ -$ -$ 500 WATER FUND 4102 Public Works - Corporation Yard 10 Public Works - Water Utility -$ -$ -$ -$ -$ -$ 500 WATER FUND 4106 Public Works - Governmental Building 10 Public Works - Water Utility -$ -$ -$ -$ -$ -$ 500 WATER FUND 4402 PW-Uitility 10 Public Works - Water Utility $ 318,931 -$ $ 318,931 $ 1,291,386 -$ $ 1,291,386 500 WATER FUND 9971 Debt Service 10 Public Works - Water Utility -$ -$ -$ $ 1,306 $ (1,306) -$ 500 WATER FUND 9973 Debt Service 10 Public Works - Water Utility -$ -$ -$ -$ -$ -$ 500 WATER FUND 9974 Debt Service 10 Public Works - Water Utility -$ -$ -$ -$ -$ -$ 500 WATER FUND 9976 Debt Service 10 Public Works - Water Utility -$ -$ -$ -$ -$ -$ 500 WATER FUND 9977 Debt Service 10 Public Works - Water Utility -$ -$ -$ $ 16,539 $ (16,539) -$ 500 WATER FUND 9980 Debt Service 10 Public Works - Water Utility -$ -$ -$ $ 34,384 $ (34,384) -$ 501 Water Enterprise Capital Proj Fund 0000 Non Departmental 10 Public Works - Water Utility -$ -$ -$ $ 349,801 $ (349,801) -$ 501 Water Enterprise Capital Proj Fund 2350 Engineering 10 Public Works - Water Utility -$ -$ -$ $ 26,566 $ (26,566) -$ 501 Water Enterprise Capital Proj Fund 2351 Engineering 10 Public Works - Water Utility -$ -$ -$ $ 1,529 $ (1,529) -$ 501 Water Enterprise Capital Proj Fund 4150 Public Works 10 Public Works - Water Utility -$ -$ -$ -$ -$ -$ 501 Water Enterprise Capital Proj Fund 4151 Public Works 10 Public Works - Water Utility -$ -$ -$ $ 22,135 $ (22,135) -$ 502 Water Connection Fee Fund 0000 Non Departmental 10 Public Works - Water Utility -$ -$ -$ -$ -$ -$ 510 WasteWater Enterprise Fund 0000 Non Departmental 11 Public Works - Wastewater Utility -$ -$ -$ $ 941,485 $ (32,551) $ 908,934 510 WasteWater Enterprise Fund 1001 City Council 11 Public Works - Wastewater Utility -$ -$ -$ -$ -$ -$ 510 WasteWater Enterprise Fund 1101 City Manager 11 Public Works - Wastewater Utility -$ -$ -$ -$ -$ -$ 510 WasteWater Enterprise Fund 1201 City Attorney 11 Public Works - Wastewater Utility -$ -$ -$ -$ -$ -$

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Adjustments Total Basis
Fund Organization Indirect Rate Method: Direct Cost Classification for Indirect Rates (i.e., Department Description) Indirect Rate Method: Labor Cost 510 WasteWater Enterprise Fund 1301 City Clerk 11 Public Works - Wastewater Utility -$ -$ -$ -$ -$ -$ 510 WasteWater Enterprise Fund 1401 Finance 11 Public Works - Wastewater Utility -$ -$ -$ $ 27,797 -$ $ 27,797 510 WasteWater Enterprise Fund 2102 Planning 11 Public Works - Wastewater Utility -$ -$ -$ -$ -$ -$ 510 WasteWater Enterprise Fund 2202 Building 11 Public Works - Wastewater Utility -$ -$ -$ -$ -$ -$ 510 WasteWater Enterprise Fund 2302 Engineering 11 Public Works - Wastewater Utility -$ -$ -$ -$ -$ -$ 510 WasteWater Enterprise Fund 4102 Public Works - Corporation Yard 11 Public Works - Wastewater Utility -$ -$ -$ -$ -$ -$ 510 WasteWater Enterprise Fund 4106 Public Works - Governmental Building 11 Public Works - Wastewater Utility -$ -$ -$ -$ -$ -$ 510 WasteWater Enterprise Fund 4402 PW-Uitility 11 Public Works - Wastewater Utility $ 271,638 -$ $ 271,638 $ 717,516 -$ $ 717,516 510 WasteWater Enterprise Fund 4502 PW Subregional O&M 11 Public Works - Wastewater Utility -$ -$ -$ $ 2,118,436 -$ $ 2,118,436 510 WasteWater Enterprise Fund 9971 Debt Service 11 Public Works - Wastewater Utility -$ -$ -$ $ 1,218 $ (1,218) -$ 510 WasteWater Enterprise Fund 9974 Debt Service 11 Public Works - Wastewater Utility -$ -$ -$ -$ -$ -$ 510 WasteWater Enterprise Fund 9980 Debt Service 11 Public Works - Wastewater Utility -$ -$ -$ $ 24,451 $ (24,451) -$ 511 Sewer Enterprise Capital Proj Fund 0000 Non Departmental 11 Public Works - Wastewater Utility -$ -$ -$ $ 214,771 $ (214,771) -$ 511 Sewer Enterprise Capital Proj Fund 2350 Engineering 11 Public Works - Wastewater Utility -$ -$ -$ $ 446 $ (446) -$ 511 Sewer Enterprise Capital Proj Fund 2351 Engineering 11 Public Works - Wastewater Utility -$ -$ -$ $ 1,529 $ (1,529) -$ 511 Sewer Enterprise Capital Proj Fund 4150 Public Works 11 Public Works - Wastewater Utility -$ -$ -$ -$ -$ -$ 511 Sewer Enterprise Capital Proj Fund 4151 Public Works 11 Public Works - Wastewater Utility -$ -$ -$ $ 30,576 $ (30,576) -$ 601 Insurance & Benefit-ISF 0000 Non Departmental 0 Unclassified / CIP, ISF, Transfer -$ -$ -$ $ 1,276,211 -$ $ 1,276,211 700 General Capital Projects 2150 Planning 0 Unclassified / CIP, ISF, Transfer -$ -$ -$ -$ -$ -$ 700 General Capital Projects 2151 Planning - [Title] 0 Unclassified / CIP, ISF, Transfer -$ -$ -$ -$ -$ -$ 700 General Capital Projects 2350 Engineering 0 Unclassified / CIP, ISF, Transfer -$ -$ -$ $ 80,643 $ (80,643) -$ 700 General Capital Projects 2351 Engineering 0 Unclassified / CIP, ISF, Transfer -$ -$ -$ $ 226,541 $ (226,541) -$ 700 General Capital Projects 4151 Public Works 0 Unclassified / CIP, ISF, Transfer -$ -$ -$ $ 63,967 $ (63,967) -$ 800 General Fixed Assets 0000 Non Departmental 0 Unclassified / CIP, ISF, Transfer -$ -$ -$ $ 926,021 $ (926,021) -$

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Agenda Item Number 9
Exhibit 11b
CITY OF SEBASTOPOL | INDIRECT COST ALLOCATION PLAN FOR FY 2026-27 BUDGET Indirect Rate for Citywide Central Services - Departmental Summary Ref.

No. Department (Classification)
Allocated
Central
Services
of Direct
Salary Expense
[a,c]
of Direct
Expenditure
[b,d]
Department (for Indirect Rate Classification Purposes) Indirect Rates 0 Unclassified / CIP, ISF, Transfer $ 347,309 n/a n/a
1 Allocated Indirect Services n/a n/a n/a
2 General Government $ 69,699 n/a n/a
3 Planning $ 105,146 45% 11.6%
4 Building $ 37,445 80% 12.3%
5 Engineering $ 19,581 0% 7.6%
6 Fire & Prevention $ 289,554 126% 18.6%
7 Police $ 706,820 36% 13.9%
8 Public Works $ 406,533 108% 27.6%
9 Public Works - Community Facilities $ 80,554 158% 22.7% 10 Public Works - Water Utility $ 770,772 242% 35.5%
11 Public Works - Wastewater Utility $ 816,504 301% 21.6% Grand Total and Composite for City $ 3,649,917 71% 13.7% [a] Direct Salary Expense = Salaries - Full Time and Salaries - Part-Time. [b] Direct Expense = Total expenditure net of debt service, capital, depreciation, transfers/financing uses. [c] This rate method is useful in recovering Citywide overhead on projects/programs where staff directly charge time, e.g., capital projects where funds are sufficient, feasible, and allowed. [d] In projects/programs where directly charged labor is not the preponderance of expense, this rate method is available for recovering Citywide overhead where funds are sufficient, feasible, and allowed. This rate method is also used to express possible interfund charges for service by fund, where feasible. See Exhibits 12a and 12b.

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Agenda Item Number 9
Exhibit 12a
CITY OF SEBASTOPOL | INDIRECT COST ALLOCATION PLAN FOR FY 2026-27 BUDGET Interfund Charge for Citywide Central Services by Organizational Unit within Funds Fund Organization Classification for Indirect Rates
(i.e., Department Description) Indirect Rate Method: Direct Cost Applicable Charge for
No. Title No. Title No. Title Indirect Rate Rate Basis [b] Central [a] Services
Direct Services in the General Fund
100 GENERAL FUND 1001 City Council 2 General Government n/a $ 4,300 $ - 100 GENERAL FUND 1101 City Manager 2 General Government n/a $ 500 $ - 100 GENERAL FUND 1201 City Attorney 2 General Government n/a $ 646,785 $ - 100 GENERAL FUND 1301 City Clerk 2 General Government n/a $ 125,764 $ - 100 GENERAL FUND 14xx Finance / Admin. Services - All General Fund 2 General Government n/a $ 32,013 $ - 100 GENERAL FUND 23xx Engineering - All General Fund Programs 5 Engineering 7.6% $ 258,837 $ 19,581 100 GENERAL FUND 4102 Public Works - Corporation Yard 8 Public Works 27.6% $ 21,042 $ 5,812 100 GENERAL FUND 4106 Public Works - Governmental Building 8 Public Works 27.6% $ 56,500 $ 15,606 100 GENERAL FUND 0000 Non Departmental 2 General Government n/a $ 300,000 $ - 100 GENERAL FUND 2102 Planning 3 Planning 11.6% $ 657,815 $ 76,472 100 GENERAL FUND 2202 Building 4 Building 12.3% $ 303,081 $ 37,405 100 GENERAL FUND 3102 Fire & Prevention 6 Fire & Prevention 18.6% $ 1,490,275 $ 276,607 100 GENERAL FUND 3114 Fire & Prevention 6 Fire & Prevention 18.6% $ 2,001 $ 371 100 GENERAL FUND 3202 Police 7 Police 13.9% $ 5,052,671 $ 701,508 100 GENERAL FUND 3213 Police 7 Police 13.9% $ - $ -
100 GENERAL FUND 4002 Senior Center 9 Public Works - Community Facilities 22.7% $ 26,145 $ 5,939 100 GENERAL FUND 4103 Public Works - Streets Maintenance 8 Public Works 27.6% $ 353,356 $ 97,599 100 GENERAL FUND 4104 Public Works - Parks & Landscaping 8 Public Works 27.6% $ 591,240 $ 163,304 100 GENERAL FUND 4105 Public Works - Parking Lots 8 Public Works 27.6% $ 138,446 $ 38,240 100 GENERAL FUND 4107 Public Works - [Division Title] 8 Public Works 27.6% $ 11,116 $ 3,070 100 GENERAL FUND 4202 Public Works - Community Center 9 Public Works - Community Facilities 22.7% $ 172,309 $ 39,142 100 GENERAL FUND 4302 Public Works - Ives Pool 9 Public Works - Community Facilities 22.7% $ 156,154 $ 35,472 100 GENERAL FUND 9971 Debt Service 0 Unclassified / CIP, ISF, Transfer n/a $ - $ - 100 GENERAL FUND 9972 Debt Service 0 Unclassified / CIP, ISF, Transfer n/a $ - $ - 100 GENERAL FUND 9974 Debt Service 0 Unclassified / CIP, ISF, Transfer n/a $ - $ - 100 GENERAL FUND 9980 Debt Service 0 Unclassified / CIP, ISF, Transfer n/a $ - $ - Direct Services in Other Funds
103 Buildings,Facilities & Infrast 0000 Non Departmental 0 Unclassified / CIP, ISF, Transfer n/a $ - $ - 103 Buildings,Facilities & Infrast 1001 City Council 2 General Government n/a $ - $ - 103 Buildings,Facilities & Infrast 3202 Police 7 Police 13.9% $ - $ -

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Agenda Item Number 9
City Council Meeting Packet for October 20, 2026

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Agenda Item Number 9
Exhibit 12a
CITY OF SEBASTOPOL | INDIRECT COST ALLOCATION PLAN FOR FY 2026-27 BUDGET Interfund Charge for Citywide Central Services by Organizational Unit within Funds No. Title No. Title No. Title
Applicable
Indirect Rate
[a]
Rate Basis [b]
Charge for
Central
Services
Fund Organization Classification for Indirect Rates
(i.e., Department Description) Indirect Rate Method: Direct Cost 103 Buildings,Facilities & Infrast 4002 Senior Center 9 Public Works - Community Facilities 22.7% -$ -$ 103 Buildings,Facilities & Infrast 4102 Public Works - Corporation Yard 8 Public Works 27.6% -$ -$ 103 Buildings,Facilities & Infrast 4106 Public Works - Governmental Building 8 Public Works 27.6% -$ -$ 103 Buildings,Facilities & Infrast 4202 PW-Community Center 9 Public Works - Community Facilities 22.7% -$ -$ 103 Buildings,Facilities & Infrast 4302 PW-Ives Pool 9 Public Works - Community Facilities 22.7% -$ -$ 104 Equip,Technology & Vehicles 0000 Non Departmental 6 Fire & Prevention 18.6% -$ -$ 104 Equip,Technology & Vehicles 3102 Fire & Prevention 6 Fire & Prevention 18.6% -$ -$ 104 Equip,Technology & Vehicles 3202 Police 7 Police 13.9% -$ -$ 104 Equip,Technology & Vehicles 4102 Public Works - Corporation Yard 8 Public Works 27.6% -$ -$ 105 Pension & OPEB Fund 1401 Finance 2 General Government n/a $ 12,775 -$ 120 Tree Replacement Fund 0000 Non Departmental 0 Unclassified / CIP, ISF, Transfer n/a -$ -$ 120 Tree Replacement Fund 2102 Planning 3 Planning 11.6% -$ -$ 120 Tree Replacement Fund 4103 Public Works - Streets 8 Public Works 27.6% -$ -$ 120 Tree Replacement Fund 4104 Public Works - Parks & Landscaping 8 Public Works 27.6% -$ -$ 122 PermitTechnology Fund 2102 Planning 3 Planning 11.6% $ 21,185 $ 2,463 122 PermitTechnology Fund 2202 Building 4 Building 12.3% $ 327 $ 40 123 Street Pavement Reserve 0000 Non Departmental 0 Unclassified / CIP, ISF, Transfer n/a -$ -$ 123 Street Pavement Reserve 2350 Engineering 5 Engineering 7.6% -$ -$ 123 Street Pavement Reserve 2351 Engineering 5 Engineering 7.6% -$ -$ 124 Measure T& Q (Y) 4103 Public Works - Streets 8 Public Works 27.6% -$ -$ 125 Vehicle Abatement 0000 Non Departmental 0 Unclassified / CIP, ISF, Transfer n/a -$ -$ 126 Tobacco Mgmnt Program Fund 3202 Police 7 Police 13.9% $ 1,964 $ 273 127 Flood Mitigation Fund 0000 Non Departmental 0 Unclassified / CIP, ISF, Transfer n/a -$ -$ 127 Flood Mitigation Fund 4202 PW-Community Center 9 Public Works - Community Facilities 22.7% -$ -$ 128 Police Endowment Fund 0000 Non Departmental 0 Unclassified / CIP, ISF, Transfer n/a -$ -$ 128 Police Endowment Fund 3202 Police 7 Police 13.9% $ 10,303 $ 1,430 200 Gas Tax Fund 4103 Public Works - Streets 8 Public Works 27.6% $ 185,773 $ 51,311 201 Measure M-Road Mtn 0000 Non Departmental 0 Unclassified / CIP, ISF, Transfer n/a -$ -$ 202 Measure M-ParkImpr Fund 0000 Non Departmental 0 Unclassified / CIP, ISF, Transfer n/a -$ -$ 203 Art In-Lieu Fund 0000 Non Departmental 0 Unclassified / CIP, ISF, Transfer n/a $ 7,011 -$ 203 Art In-Lieu Fund 2102 Planning 3 Planning 11.6% $ 28,500 $ 3,313 203 Art In-Lieu Fund 4104 Public Works - Parks & Landscaping 8 Public Works 27.6% $ 188 $ 52

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Agenda Item Number 9
Exhibit 12a
CITY OF SEBASTOPOL | INDIRECT COST ALLOCATION PLAN FOR FY 2026-27 BUDGET Interfund Charge for Citywide Central Services by Organizational Unit within Funds No. Title No. Title No. Title
Applicable
Indirect Rate
[a]
Rate Basis [b]
Charge for
Central
Services
Fund Organization Classification for Indirect Rates
(i.e., Department Description) Indirect Rate Method: Direct Cost 204 Housing Linkage Fee Fund 0000 Non Departmental 0 Unclassified / CIP, ISF, Transfer n/a -$ -$ 205 Inclusionary Housing Fund 0000 Non Departmental 0 Unclassified / CIP, ISF, Transfer n/a -$ -$ 207 Downtown Improvement District Fund 0000 Non Departmental 0 Unclassified / CIP, ISF, Transfer n/a $ 7,300 -$ 208 General Plan Update Fund 0000 Non Departmental 0 Unclassified / CIP, ISF, Transfer n/a -$ -$ 208 General Plan Update Fund 2102 Planning 3 Planning 11.6% -$ -$ 209 SLESF Grant Fund 3202 Police 7 Police 13.9% -$ -$
211 Transportation Grants 0000 Non Departmental 0 Unclassified / CIP, ISF, Transfer n/a -$ -$ 211 Transportation Grants 2102 Planning 3 Planning 11.6% $ 185,582 $ 21,574 212 Park In-Lieu Fee Fund 0000 Non Departmental 0 Unclassified / CIP, ISF, Transfer n/a -$ -$ 212 Park In-Lieu Fee Fund 2102 Planning 3 Planning 11.6% -$ -$ 212 Park In-Lieu Fee Fund 9971 Debt Service 0 Unclassified / CIP, ISF, Transfer n/a -$ -$ 213 Traffic Impact Fee Fund 0000 Non Departmental 0 Unclassified / CIP, ISF, Transfer n/a -$ -$ 213 Traffic Impact Fee Fund 2102 Planning 3 Planning 11.6% $ 1,056 $ 123 215 Street Lighting Assess District 1401 Finance 2 General Government n/a $ 14,635 -$ 215 Street Lighting Assess District 4103 Public Works - Streets 8 Public Works 27.6% $ 114,187 $ 31,539 216 CDBG ADA Transitional Plan 0000 Non Departmental 0 Unclassified / CIP, ISF, Transfer n/a -$ -$ 217 Road Mtn & Rehab (SB1) 0000 Non Departmental 0 Unclassified / CIP, ISF, Transfer n/a -$ -$ 217 Road Mtn & Rehab (SB1) 2302 Engineering 5 Engineering 7.6% -$ -$ 218 Park Land & Development Fee 0000 Non Departmental 0 Unclassified / CIP, ISF, Transfer n/a -$ -$ 219 Gen Government Facilities Fee 0000 Non Departmental 0 Unclassified / CIP, ISF, Transfer n/a -$ -$ 220 Fire Facilities Fee 0000 Non Departmental 0 Unclassified / CIP, ISF, Transfer n/a -$ -$ 221 Stormwater Facilities Fee 0000 Non Departmental 0 Unclassified / CIP, ISF, Transfer n/a -$ -$ 233 COMMUNITY FUND 0000 Non Departmental 0 Unclassified / CIP, ISF, Transfer n/a -$ -$ 240 BSCC - Wellness/Mental Health 3202 Police 7 Police 13.9% -$ -$ 245 OTS Police Fed Grants 3202 Police 7 Police 13.9% $ 25,990 $ 3,608 247 Suppl Plng Grant (SB2&LEAP) 0000 Non Departmental 0 Unclassified / CIP, ISF, Transfer n/a -$ -$ 247 Suppl Plng Grant (SB2&LEAP) 2102 Planning 3 Planning 11.6% $ 10,330 $ 1,201 248 Measure H-Fire Sales Tax 0000 Non Departmental 0 Unclassified / CIP, ISF, Transfer n/a -$ -$ 248 Measure H-Fire Sales Tax 3102 Fire & Prevention 6 Fire & Prevention 18.6% $ 67,757 $ 12,576 248 Measure H-Fire Sales Tax 9974 Debt Service 0 Unclassified / CIP, ISF, Transfer n/a -$ -$ 401 Woodstone Ctr Assess District DS 0000 Non Departmental 0 Unclassified / CIP, ISF, Transfer n/a -$ -$ 401 Woodstone Ctr Assess District DS 9970 Debt Service 0 Unclassified / CIP, ISF, Transfer n/a -$ -$

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City Council Meeting Packet for October 20, 2026

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Agenda Item Number 9
Exhibit 12a
CITY OF SEBASTOPOL | INDIRECT COST ALLOCATION PLAN FOR FY 2026-27 BUDGET Interfund Charge for Citywide Central Services by Organizational Unit within Funds No. Title No. Title No. Title
Applicable
Indirect Rate
[a]
Rate Basis [b]
Charge for
Central
Services
Fund Organization Classification for Indirect Rates
(i.e., Department Description) Indirect Rate Method: Direct Cost 402 CREBS DS Fund 9973 Debt Service 0 Unclassified / CIP, ISF, Transfer n/a -$ -$ 500 WATER FUND 0000 Non Departmental 10 Public Works - Water Utility 35.5% $ 852,863 $ 302,699 500 WATER FUND 1001 City Council 10 Public Works - Water Utility 35.5% -$ -$ 500 WATER FUND 1101 City Manager 10 Public Works - Water Utility 35.5% -$ -$ 500 WATER FUND 1201 City Attorney 10 Public Works - Water Utility 35.5% -$ -$ 500 WATER FUND 1301 City Clerk 10 Public Works - Water Utility 35.5% -$ -$ 500 WATER FUND 1401 Finance 10 Public Works - Water Utility 35.5% $ 27,421 $ 9,732 500 WATER FUND 2102 Planning 10 Public Works - Water Utility 35.5% -$ -$ 500 WATER FUND 2202 Building 10 Public Works - Water Utility 35.5% -$ -$ 500 WATER FUND 2302 Engineering 10 Public Works - Water Utility 35.5% -$ -$ 500 WATER FUND 3102 Fire & Prevention 10 Public Works - Water Utility 35.5% -$ -$ 500 WATER FUND 4102 Public Works - Corporation Yard 10 Public Works - Water Utility 35.5% -$ -$ 500 WATER FUND 4106 Public Works - Governmental Building 10 Public Works - Water Utility 35.5% -$ -$ 500 WATER FUND 4402 PW-Uitility 10 Public Works - Water Utility 35.5% $ 1,291,386 $ 458,340 500 WATER FUND 9971 Debt Service 10 Public Works - Water Utility 35.5% -$ -$ 500 WATER FUND 9973 Debt Service 10 Public Works - Water Utility 35.5% -$ -$ 500 WATER FUND 9974 Debt Service 10 Public Works - Water Utility 35.5% -$ -$ 500 WATER FUND 9976 Debt Service 10 Public Works - Water Utility 35.5% -$ -$ 500 WATER FUND 9977 Debt Service 10 Public Works - Water Utility 35.5% -$ -$ 500 WATER FUND 9980 Debt Service 10 Public Works - Water Utility 35.5% -$ -$ 501 Water Enterprise Capital Proj Fund 0000 Non Departmental 10 Public Works - Water Utility 35.5% -$ -$ 501 Water Enterprise Capital Proj Fund 2350 Engineering 10 Public Works - Water Utility 35.5% -$ -$ 501 Water Enterprise Capital Proj Fund 2351 Engineering 10 Public Works - Water Utility 35.5% -$ -$ 501 Water Enterprise Capital Proj Fund 4150 Public Works 10 Public Works - Water Utility 35.5% -$ -$ 501 Water Enterprise Capital Proj Fund 4151 Public Works 10 Public Works - Water Utility 35.5% -$ -$ 502 Water Connection Fee Fund 0000 Non Departmental 10 Public Works - Water Utility 35.5% -$ -$ 510 WasteWater Enterprise Fund 0000 Non Departmental 11 Public Works - Wastewater Utility 21.6% $ 908,934 $ 196,716 510 WasteWater Enterprise Fund 1001 City Council 11 Public Works - Wastewater Utility 21.6% -$ -$ 510 WasteWater Enterprise Fund 1101 City Manager 11 Public Works - Wastewater Utility 21.6% -$ -$ 510 WasteWater Enterprise Fund 1201 City Attorney 11 Public Works - Wastewater Utility 21.6% -$ -$ 510 WasteWater Enterprise Fund 1301 City Clerk 11 Public Works - Wastewater Utility 21.6% -$ -$ 510 WasteWater Enterprise Fund 1401 Finance 11 Public Works - Wastewater Utility 21.6% $ 27,797 $ 6,016

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Agenda Item Number 9
Exhibit 12a
CITY OF SEBASTOPOL | INDIRECT COST ALLOCATION PLAN FOR FY 2026-27 BUDGET Interfund Charge for Citywide Central Services by Organizational Unit within Funds No. Title No. Title No. Title
Applicable
Indirect Rate
[a]
Rate Basis [b]
Charge for
Central
Services
Fund Organization Classification for Indirect Rates
(i.e., Department Description) Indirect Rate Method: Direct Cost 510 WasteWater Enterprise Fund 2102 Planning 11 Public Works - Wastewater Utility 21.6% -$ -$ 510 WasteWater Enterprise Fund 2202 Building 11 Public Works - Wastewater Utility 21.6% -$ -$ 510 WasteWater Enterprise Fund 2302 Engineering 11 Public Works - Wastewater Utility 21.6% -$ -$ 510 WasteWater Enterprise Fund 4102 Public Works - Corporation Yard 11 Public Works - Wastewater Utility 21.6% -$ -$ 510 WasteWater Enterprise Fund 4106 Public Works - Governmental Building 11 Public Works - Wastewater Utility 21.6% -$ -$ 510 WasteWater Enterprise Fund 4402 PW-Uitility 11 Public Works - Wastewater Utility 21.6% $ 717,516 $ 155,289 510 WasteWater Enterprise Fund 4502 PW Subregional O&M 11 Public Works - Wastewater Utility 21.6% $ 2,118,436 $ 458,483 510 WasteWater Enterprise Fund 9971 Debt Service 11 Public Works - Wastewater Utility 21.6% -$ -$ 510 WasteWater Enterprise Fund 9974 Debt Service 11 Public Works - Wastewater Utility 21.6% -$ -$ 510 WasteWater Enterprise Fund 9980 Debt Service 11 Public Works - Wastewater Utility 21.6% -$ -$ 511 Sewer Enterprise Capital Proj Fund 0000 Non Departmental 11 Public Works - Wastewater Utility 21.6% -$ -$ 511 Sewer Enterprise Capital Proj Fund 2350 Engineering 11 Public Works - Wastewater Utility 21.6% -$ -$ 511 Sewer Enterprise Capital Proj Fund 2351 Engineering 11 Public Works - Wastewater Utility 21.6% -$ -$ 511 Sewer Enterprise Capital Proj Fund 4150 Public Works 11 Public Works - Wastewater Utility 21.6% -$ -$ 511 Sewer Enterprise Capital Proj Fund 4151 Public Works 11 Public Works - Wastewater Utility 21.6% -$ -$ 601 Insurance & Benefit-ISF 0000 Non Departmental 0 Unclassified / CIP, ISF, Transfer n/a $ 1,276,211 -$ 700 General Capital Projects 2150 Planning 0 Unclassified / CIP, ISF, Transfer n/a -$ -$ 700 General Capital Projects 2151 Planning - [Title] 0 Unclassified / CIP, ISF, Transfer n/a -$ -$ 700 General Capital Projects 2350 Engineering 0 Unclassified / CIP, ISF, Transfer n/a -$ -$ 700 General Capital Projects 2351 Engineering 0 Unclassified / CIP, ISF, Transfer n/a -$ -$ 700 General Capital Projects 4151 Public Works 0 Unclassified / CIP, ISF, Transfer n/a -$ -$ 800 General Fixed Assets 0000 Non Departmental 0 Unclassified / CIP, ISF, Transfer n/a -$ -$ [a] Refer to Exhibit 11b.
[b] Refer to Exhibit 11a.

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Agenda Item Number 9
No. Title
100 GENERAL FUND $ 1,933,137 [d]
103 Buildings,Facilities & Infrast -$
104 Equip,Technology & Vehicles -$
105 Pension & OPEB Fund -$
120 Tree Replacement Fund -$
121 BSA Fund-SB1473 Fee -$
122 PermitTechnology Fund $ 2,503
123 Street Pavement Reserve -$
124 Measure T& Q (Y) -$
125 Vehicle Abatement -$
126 Tobacco Mgmnt Program Fund $ 273
127 Flood Mitigation Fund -$
128 Police Endowment Fund $ 1,430
200 Gas Tax Fund $ 51,311
201 Measure M-Road Mtn -$
202 Measure M-ParkImpr Fund -$
203 Art In-Lieu Fund $ 3,365
204 Housing Linkage Fee Fund -$
205 Inclusionary Housing Fund -$
206 Bldg Permit Incremental Fund -$
207 Downtown Improvement District Fund -$
208 General Plan Update Fund -$
209 SLESF Grant Fund -$
210 Asset Forfeitures Fund-State -$
211 Transportation Grants $ 21,574
212 Park In-Lieu Fee Fund -$
213 Traffic Impact Fee Fund $ 123
214 Underground Utilities Fee Fund -$
215 Street Lighting Assess District $ 31,539
216 CDBG ADA Transitional Plan -$
217 Road Mtn & Rehab (SB1) -$
218 Park Land & Development Fee -$
Possible Charge
for Central
Services Allocated
in this Plan [c]
Fund [b]
Exhibit 12b
CITY OF SEBASTOPOL | INDIRECT COST ALLOCATION PLAN FOR FY 2026-27 BUDGET Interfund Charge for Citywide Central Services by Fund [a] Comment

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Agenda Item Number 9
No. Title
Possible Charge
for Central
Services Allocated
in this Plan [c]
Fund [b]
Exhibit 12b
CITY OF SEBASTOPOL | INDIRECT COST ALLOCATION PLAN FOR FY 2026-27 BUDGET Interfund Charge for Citywide Central Services by Fund [a] Comment
219 Gen Government Facilities Fee -$
220 Fire Facilities Fee -$
221 Stormwater Facilities Fee -$
233 COMMUNITY FUND -$
240 BSCC - Wellness/Mental Health -$
244 SACA Grant -$
245 OTS Police Fed Grants $ 3,608
246 BSCC 1:4:1 Youth -$
247 Suppl Plng Grant (SB2&LEAP) $ 1,201
248 Measure H-Fire Sales Tax $ 12,576
401 Woodstone Ctr Assess District DS -$
402 CREBS DS Fund -$
500 WATER FUND $ 770,772 This represents the maximum interfund charge for allocated central services. 501 Water Enterprise Capital Proj Fund -$
502 Water Connection Fee Fund -$
510 WasteWater Enterprise Fund $ 816,504 This represents the maximum interfund charge for allocated central services. 511 Sewer Enterprise Capital Proj Fund -$
Total Interfund Charges Calculated $ 3,649,917
[a] The charge for Citywide central services is derived from indirect rates by department and applied to departmental costs budgeted in the fund. Refer to Exhibit 12a for detail. [b] Refer to list of funds on Workspace 2.
[c] Values represent calculated amounts only. The City must determine sufficiency, feasibility, and allowability of imposing a charge for central services in each individual fund. [d] Allocated costs serving as the basis for these charges all exist in the General Fund; therefore, this amount is that which remains in the General Fund, representing the allocated share of central services to direct services organizational units budgeted in the General Fund.

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Agenda Item Number 9
Workspace 1 - Not Printed / Reference Workbook for Detailed List CITY OF SEBASTOPOL | INDIRECT COST ALLOCATION PLAN FOR FY 2026-27 BUDGET General Ledger, Expenditures Only, for Actual 2024-25 Data Source: "24-25 Budget to Actual.xls" as of 2/11/2026 Totals: $ 25,683,815 $ 25,683,815 $ 874,666 $ 586,071 $ 1,414,474 $ 1,142,911 $ 1,761,797 $ - $ 1,276,211 $ 2,131,210 $ - $ 4,695,041 $ 99,626 $ 4,672,980 Fund Organization Object Data Value Adjustments to Derive Net Operating Expenditures Allocation Metric Adjustments to Derive Modified Operating Expenditures Allocation Metric Labor Costs for Indirect Rates Additional Metrics Actual 2024- Expenditure Transfers & Overhead No. Title No. Title No. Title Debt Service Capital Depreciation ISF Charges 25 Values Only Financing Uses ChargeLarge Payments
Distorting
Expense
Extraordinary
Expense
Salaries - Full
Time
Salaries - Part
Time
Services &
Supplies
Accounts

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Workspace 2 - Not Printed / Reference Workbook for Detailed List CITY OF SEBASTOPOL | INDIRECT COST ALLOCATION PLAN FOR FY 2026-27 BUDGET Chart of Accounts
Data Source: Derived from data cited in Workspace 1.

No. Title Category No. Title Classification Note
Funds Organizations (e.g., Department/Program) Objects
No. Title

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-
Agenda Item Number 9
Workspace 3 - Not Printed / Reference Workbook for Detailed List CITY OF SEBASTOPOL | INDIRECT COST ALLOCATION PLAN FOR FY 2026-27 BUDGET Labor Detail
Data Source: "22-23 Salaries and Benefits - Actuals.xls" Totals: 93,736 45.07 $ 7,322,111 Fund
No. Title No. Title No. Title
Position
Imputed
FTE
Organization
Comp
ensated
Hours
Total Position
Cost

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Agenda Item Number 9
Workspace 4 - Not Printed / Reference Workbook for Detail CITY OF SEBASTOPOL | INDIRECT COST ALLOCATION PLAN FOR FY 2026-27 BUDGET Data Development
Data Source: Questionnaires / Interviews, City System Exports, Other Available Sources

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APPENDIX II

COMMITTEE PRESENTATION
MARCH 30, 2026

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Agenda Item Number 9

CITY OF

SEBASTOPOL
Agenda Item Number 9
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Agenda Item Number 9
• An interfund charge for service (4998 Interfund Charges – Cost Plan) assessed on certain enterprise funds to reimburse the General Fund for central oversight, management, and support services • Updates the Indirect Cost Allocation Plan developed in 2024 and updated in 2025, which replaced an allocation methodology previously established in 2001
• Outcomes presented here should inform budget development for next Fiscal Year 2026-27
• Specific direction was provided by the City to evaluate the impacts of alternative allocated cost pools, all of which result in decreased cost recovery to the General Fund in varying amounts, caused by reduced allocable costs serving as the basis for interfund charges Agenda Item Number 9
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Agenda Item Number 9
• Directly assigned
through budgeting
and ongoing cost
accounting
• Allocated through
budgeting and/or cost
accounting or through
a cost allocation plan
(CAP)
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Agenda Item Number 9
Assumption / Variable in Plan Iteration Prior
for
FY 2025-26
Scenario A
for
FY 2026-27
Scenario B
for
FY 2026-27
FY 2024-25
Budget
FY 2024-25
Actual
FY 2024-25
Actual
Cost Allocation Plan Iteration
Fiscal Year Basis for Allocated
Expenditures
Inclusion of City Attorney as an
Yes No No
Allocated Cost Pool
Exclusions of Costs Based on Federal
No No Yes Cost Claiming Principles
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Agenda Item Number 9
•
•
Scenario A Scenario B
Expenditure Year Basis for Allocated Costs 2024-25 Budget 2024-25 Actual 2024-25 Actual 100-10 | City Council $ 195,825 $ 172,504 -$
100-11 | City Manager $ 698,385 $ 826,812 $ 805,112
100-12 | City Attorney $ 647,900 -$ -$
100-13 | City Clerk $ 335,603 $ 331,395 $ 326,337
100-14 | Finance / Administrative Services $ 1,411,268 $ 1,353,783 $ 1,331,447 100-23 | Engineering $ 258,296 $ 212,414 $ 212,393
100-41-02 | Public Works - Corporation Yard $ 471,275 $ 491,133 $ 490,889 100-41-06 | Public Works - Governmental Building $ 212,539 $ 164,750 $ 164,750 100-00 | Non Departmental $ 146,940 $ 97,126 $ 97,126

ALLOCATED ORGANIZATIONS
FY 2025-26
Plan
FY 2026-27 Plan
Allocable Cost Pool
Central Services Department or Division
Total Allocable Central Services Cost $ 4,378,031 $ 3,649,917 $ 3,428,053 Difference from Prior Plan $ (728,115) $ (949,978)
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• A rational method to distribute
costs which support multiple
activities across the City
• Processes costs that cannot be
easily assigned to an end
beneficiary without effort
disproportionate to the results
achieved
• Attributes the allocated cost to
the City’s direct public services
• Allocated costs are commonly
referred to as “overhead”
• Informs a variety of cost
recovery opportunities * Frequently referred to in this plan as a “Central Services Function.”

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Agenda Item Number 9
• Allocate across the entire organization without bias for ability or preference to pay
• Root allocated costs in recent or current documented fiscal year with confidence in reported or budgeted expense items
• Use allocation metrics based on readily available and replicable information to reflect current conditions, not created solely for cost allocation • Generate allocated shares that reasonably reflect service or benefit received or represent an acceptable proportionality between benefitting units • Attempt to avoid large swings from year to year unless underlying organizational change has occurred and warrant such swings • Create a tool and method to support annual update and application of continually improving metrics
• Be mindful of downstream impacts to cost of service-based rates/fees (Prop 218, Prop 26), and transparent accounting for other programs Agenda Item Number 9
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• The CAP uses data from
existing City systems,
industry methods, and staff
time estimates to derive a
functional cost pool to be
allocated from each cost
Prior Plan Scenario A Scenario B
100-10 | City Council $ 195,825 $ 172,504 -$
Central Services Department/Division
and Functional Cost Pool Created by the Plan
Allocable Cost Pool
Allocation Basis
Administrative Oversight 48,956 43,126 - Compensated Labor Hours (Approx. FTEE) General Fiscal Oversight 48,956 43,126 - Net Operating Expense Capital Fiscal Oversight 97,912 86,252 - Capital Asset Value (Infrastructure) 100-11 | City Manager $ 698,385 $ 826,812 $ 805,112
Administrative Management 126,046 206,698 201,273 Compensated Labor Hours (Approx. FTEE) General Fiscal Management 352,246 206,721 201,296 Net Operating Expense Capital Fiscal Management 220,092 413,392 402,542 Capital Asset Value (Infrastructure) 100-12 | City Attorney $ 647,900 -$ -$
Citywide Service 647,900 - - Net Operating Expense
100-13 | City Clerk $ 335,603 $ 331,395 $ 326,337
Citywide Service 335,603 331,395 326,337 Net Operating Expense 100-14 | Finance / Administrative Services $ 1,411,268 $ 1,353,783 $ 1,331,447 Citywide Accounting / Budget 500,543 596,036 577,411 Net Operating Expense Utility Billing & Support 340,734 304,493 302,241 Utility Accounts Payroll 95,362 82,482 81,769 Compensated Labor Hours (Approx. FTEE) Accounts Payable 83,442 72,171 71,548 Services & Supplies Expense Accounts Receivable / Cash Receipts 47,681 41,241 40,885 Revenues Receipted Information Technology Management 162,408 154,749 154,803 Personnel Count center • The CAP sets a readily
accessible and replicable
basis for reasonably
allocating each function to
benefitting departments
Human Resources 181,098 102,612 102,790 Compensated Labor Hours (Approx. FTEE) 100-23 | Engineering $ 258,296 $ 212,414 $ 212,393
Technical Support - Public Projects 258,296 212,414 212,393 Capital Asset Value (Infrastructure) 100-41-02 | Public Works - Corporation Yard $ 471,275 $ 491,133 $ 490,889 Department Administrative Management 235,637 245,567 245,445 Public Works Personnel Count Department Fiscal Management 235,637 245,567 245,445 Public Works Modified Operating Expense 100-41-06 | Public Works - Governmental Building $ 212,539 $ 164,750 $ 164,750 Governmental Facility Maintenance 212,539 164,750 164,750 Personnel Count 100-00 | Non Departmental $ 146,940 $ 97,126 $ 97,126
Personnel Services 74,520 86,095 86,095 Compensated Labor Hours (Approx. FTEE) Information Technology Services 72,420 11,031 11,031 Personnel Count Total Allocable Central Services Cost $ 4,378,031 $ 3,649,917 $ 3,428,053

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• This is the resulting
spread of the total $3.65
million in allocated
central services costs to
departmental designation
in the CAP for Scenario A.
(The spread is not materially
different for Scenario B.)
• This informs Indirect Cost
Rates (ICRs), which are
used to determine

1.9% 1.0% 0.5% 2.2%

22.4%

21.1%

19.4%

11.1%

9.5%

7.9%
Public Works - Wastewater Utility 2.9%
Public Works - Water Utility
Police
Public Works
Unclassified / CIP, ISF, Transfer
Fire & Prevention
Planning
Public Works - Community Facilities
General Government
Building
Engineering
These are department “designations” in the CAP, not always exact departments in the City’s accounting and organization structure. These departmental designations are structured to consolidate divisions of like services and produce expressions of service. Citywide overhead reasonable and undistorted to the underlying direct service provided by the grouped divisions. interfund charges for

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•
•
•
•
•
Prior Plan Scenario A Scenario B
Planning 15.2% 11.6% 10.8%
Building 16.4% 12.3% 11.6%
Engineering 11.1% 7.6% 7.1%
Fire & Prevention 24.1% 18.6% 17.8%
Police 17.5% 13.9% 12.8%
Public Works 31.4% 27.6% 26.7%
Public Works - Community Facilities 23.4% 22.7% 21.9%
Public Works - Water Utility 37.2% 35.5% 33.0%
Public Works - Wastewater Utility 24.3% 21.6% 20.0%
Composite for the City 16.6% 13.7% 12.4%

INDIRECT COST RATES
(RATIO OF RECEIVED OVERHEAD TO RECEIVER S DIRECT COSTS) Departmental Designation in the CAP

'
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Fund Receiving an
Interfund Charge for Service
and Reimbursing the General Fund Distribution
of Outcomes
Distribution
of Outcomes
Maximum Charge
in This Plan
Interfund Charge for Service
Maximum Charge
in This Plan

SCENARIO A SCENARIO B
These values are
500 | Water $ 770,772 21% $ 717,187 21%
510 | Wastewater $ 816,504 22% $ 755,874 22%
directly comparable to
values presented in the
Other Non-General Funds Not Previously Charged $ 129,504 [a] 4% $ 123,758 [a] 4% $ 1,587,276 43% $ 1,473,061 43%
Reimbursement to the General Fund
for Allocated Central Services in this Plan
FY 2025-26 adopted 100 | General Fund - Remaining Central Services Borne $ 1,933,137 53% $ 1,831,234 53% budget, accounted as Total Central Services Allocated in this Plan $ 3,649,917 100% $ 3,428,053 100% “4998 Interfund
Charges – Cost Plan.”
[a] The City would need to evaluate eligibility and sufficiency of funding sources to accept the calculated charge from this Plan.

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-
-
- - -
-
-
-
-
- - -
- - -
Finance / Admin. Services All General
Fund
City Manager
Public Works Corporation Yard
Engineering All General Fund
Programs
City Council
City Clerk
Non Departmental
Public Works Governmental Building
City Attorney
Finance / Admin. Services All Gene l
City Manager
Public Works Corporation Yard
Engineering All General Fund
Programs
Cit Clerk
Non Departmental
Public Works Governmental Buildin
City Attorney
Agenda Item Number 9
100 12 | City Attorney
Water
-
-
-
-
Wastewater
$ 816,504
- ra
Fund
-
-
City Council
y
- g
Received by
Water
Received by
Wastewater
100 14 | Finance / Administrative Services:

Citywide Accounting / Budget $ 63,483 $ 110,284
Utility Billing & Support $ 162,058 $ 162,058
Payroll $ 6,374 $ 5,806
Accounts Payable $ 11,064 $ 3,032
Accounts Receivable / Cash Receipts $ 16,880 $ 22,647
Information Technology Management $ 5,555 $ 4,685
Human Resources $ 7,929 $ 7,223
100 11 | City Manager $ 181,933 $ 200,781
100 41 02 | Public Works Corporation Yard $ 149,777 $ 102,480 100 23 | Engineering $ 73,404 $ 75,345
100 10 | City Council $ 42,000 $ 46,403
100 13 | City Clerk $ 36,787 $ 63,907
100 00 | Non Departmental $ 6,973 $ 6,325
100 41 06 | Public Works Governmental Building $ 6,555 $ 5,528 $ $
Total Allocated Central Services Cost Received $ 770,772 Central Services Department/Division
or Functional Cost Pool Created by the Plan
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-
-
- - -
-
-
-
- - -
- - -
- - -
Finance / Admin. Services All General
Fund
City Manager
Public Works Corporation Yard
Engineering All General Fund
Programs
City Clerk
Non Departmental
Public Works Governmental Building
City Council
City Attorney
Finance / Admin. Services All Gene l
City Manager
Public Works Corporation Yard
Engineering All General Fund
Programs
Non De artmental
Public Works Governmental Buildin
City Council
City Attorney
Agenda Item Number 9
100 12 | City Attorney
$ 755,874
Water
-
-
-
Wastewater
- - ra
Fund
-
-
City Clerk
- g
Received by
Water
Received by
Wastewater
100 14 | Finance / Administrative Services:

Citywide Accounting / Budget $ 61,236 $ 106,381
Utility Billing & Support $ 160,391 $ 160,391
Payroll $ 6,299 $ 5,738
Accounts Payable $ 10,932 $ 2,995
Accounts Receivable / Cash Receipts $ 16,686 $ 22,386
Information Technology Management $ 5,538 $ 4,670
Human Resources $ 7,918 $ 7,213
100 11 | City Manager $ 176,433 $ 194,687
100 23 | Engineering $ 73,172 $ 75,108
100 13 | City Clerk $ 35,936 $ 62,429
100 00 | Non Departmental $ 6,949 $ 6,304
100 41 06 | Public Works Governmental Building $ 6,533 $ 5,509 100 10 | City Council $ $
$ $
Total Allocated Central Services Cost Received $ 717,187 Central Services Department/Division
or Functional Cost Pool Created by the Plan
p 100 41 02 | Public Works Corporation Yard $ 149,165 $ 102,062 Agenda Item Number 9
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Current Charge
in FY 2025-26
Budget
Change
in This Plan
Interfund Charge for Service SCENARIO A
Maximum Charge
in This Plan for
FY 2026-27
Fund Receiving an
Interfund Charge for Service
and Reimbursing the General Fund
500 | Water $ 770,772 $ 845,358 $ (74,586)
510 | Wastewater $ 816,504 $ 950,965 $ (134,461)
$ 1,587,276 $ 1,796,323 $ (209,048)
Reimbursement to the General Fund
for Allocated Central Services in this Plan
Other Non-General Funds Not Previously Charged $ 129,504 • Total reimbursement to the General 100 | General Fund - Remaining Central Services Borne $ 1,933,137 Fund would decrease

-
-
Agenda Item Number 9
from utility funds in FY 2026-27
in both scenarios:
• This increases cost burden on
the General Fund compared to
current fiscal year recovery
• $209,048 additional burden to the
General Fund in Scenario A
• $323,263 additional burden to the
General Fund in Scenario B
Total Central Services Allocated in this Plan $ 3,649,917 500 | Water $ 717,187 $ 845,358 $ (128,171)
510 | Wastewater $ 755,874 $ 950,965 $ (195,091)
$ 1,473,061 $ 1,796,323 $ (323,263)
Other Non-General Funds Not Previously Charged $ 123,758 100 | General Fund - Remaining Central Services Borne $ 1,831,234 Total Central Services Allocated in this Plan $ 3,428,053 Reimbursement to the General Fund
for Allocated Central Services in this Plan
Fund Receiving an
Interfund Charge for Service
and Reimbursing the General Fund
Interfund Charge for Service SCENARIO B
Maximum Charge
in This Plan for
FY 2026-27
Current Charge
in FY 2025-26
Budget
Change
in This Plan
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$ 2,476,143 $ 1,761,797 $ 1,796,323 $ 1,473,061 $(1,003,082) 41% Reimbursement to the General Fund
for Allocated Central Services

-
-
-
Agenda Item Number 9
• Outcomes continue to
represent an overall decrease
in historical levels of General
Fund cost recovery from the
utilities, due to the recent
implementation of a new
Indirect Cost Allocation Plan
FY 2023-24
[a]
FY 2024-25
[b]
FY 2025-26
[c]
FY 2026-27
[d] $-Change %-Change
Total Four Year Change
Fund Receiving an
Interfund Charge for Service
and Reimbursing the General Fund
Interfund Charge for Service by Year

SCENARIO A
500 | Water $ 1,363,096 $ 852,863 $ 845,358 $ 770,772 $ (592,324) -43% 510 | Wastewater $ 1,113,046 $ 908,934 $ 950,965 $ 816,504 $ (296,543) -27% $ 2,476,143 $ 1,761,797 $ 1,796,323 $ 1,587,276 $ (888,867) 36% Reimbursement to the General Fund
for Allocated Central Services

SCENARIO B
500 | Water $ 1,363,096 $ 852,863 $ 845,358 $ 717,187 $ (645,910) -47% 510 | Wastewater $ 1,113,046 $ 908,934 $ 950,965 $ 755,874 $ (357,172) -32% [a] Based on values derived from a cost allocation methodology established in 2001. [b] Based on a new Indirect Cost Allocation Plan developed in 2024. [c] Based on an update to the Indirect Cost Allocation Plan in 2025. [d] Based on an update to the Indirect Cost Allocation Plan with material changes to allocable costs from prior two years in 2026.

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Agenda Item Number 9
• Review these outcomes at Committee(s) level
• Examine alternate paths (next slide)
• Receive and accept the final Cost Allocation Plan
or alternate path at City Council level
• Apply results in budget development for Fiscal
Year 2026-27 by using the dollar values presented
as the budgeted interfund charge (4998, Interfund
Charge-Cost Plan)
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Assumption / Variable in Plan Iteration
Additional Scenarios 1-3
are described at right and
compared to the
previously presented
Scenarios A-B.

Water Wastewater Impact to
General Fund
0 Budgeted Charge in FY 2025-26
Based on CAP
Use of Budgeted Expenditures
$ 845,358 $ 950,965 -$
Interfund Charge for FY 2026 27

-
Agenda Item Number 9
Inflation-Adjusted Charge in FY 2026-27 $ 866,492 $ 974,739 $ 44,908 1 Based on Prior Year CAP Outcomes
"Status Quo"
Inflation-Adjusted Charge in FY 2026-27 $ 773,874 $ 828,478 $ (193,971) 2 Based on Prior Year CAP Outcomes
Excluding City Attorney
Inflation-Adjusted Charge in FY 2026-27 $ 722,058 $ 771,232 $ (303,033) 3 Based on Prior Year CAP Outcomes
Excluding City Attorney & City Council
CAP-Based Charge in FY 2026-27 $ 770,772 $ A
Use of Prior Year Actual Expenditures
Excluding City Attorney
CAP-Based Charge in FY 2026-27 $ 717,187 $ B
Use of Prior Year Actual Expenditures
Excluding City Attorney & Other Items
Not Allowed in Federal Cost-Claiming
816,504 $ (209,048)
755,874 $ (323,263)
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Agenda Item Number 9
Utility Counter Customer Service Hours Survey
Agency Utility Counter Hours Days Available Closed for lunch? Appointment
Required? Notes
City of Cloverdale
7:30 to 12PM
1PM to 5PM Monday - Thursday Y No
City of Cotati
7:30 to 12PM
1PM to 5PM Monday - Thursday Y No
Are piloting being open between 7:30-5:30pm in Nov or Dec to see if it is viable.

City of Healdsburg
7:30AM to 5:30PM
8AM to 5PM (F)
Monday - Thursday,
every other Friday N No
Town of Windsor 8AM to 5PM Monday - Thursday N No Also have 7-8am & 5-6 pm available by phone or email City of Santa Rosa
9AM to 4PM
9AM to 3PM (F)
Monday - Thursday,
every other Friday N No Phone hours are 8AM to 5PM M-F
City of Rohnert Park 8AM to 5PM Monday - Friday N No
City of Sonoma
8AM to 5PM, by appt on
Fridays Monday - Thursday N Only on Fridays
Feedback: they had to expand their customer svs hrs to meet public demand.

City of St. Helena 9AM to 12PM, 1PM-4PM Monday - Friday Y No City of Calistoga 8AM to 4:30PM Monday - Friday N No
City of Petaluma 9AM to 3PM Monday - Thursday N No
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Agenda Item Number 9
City of Sebastopol Request for Proposals – Cost Allocation Plan

CITY OF SEBASTOPOL
Sonoma County, California

REQUEST FOR PROPOSALS

COST ALLOCATION PLAN
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Agenda Item Number 9
City of Sebastopol Request for Proposals – Cost Allocation Plan Issue Date: September 23, 2026
Proposals Due: October 14, 2026 at 5:00 p.m. PDT
RFP Contact: Mary Gourley, City Manager
Email: [email protected]
Phone: (707) 823-1153
Deliver electronic proposals (PDF) to: [email protected] Subject line: [FIRM NAME] – Cost Allocation Plan RFP
City of Sebastopol
7120 Bodega Avenue | P.O. Box 1776 Sebastopol, CA
95472 www.cityofsebastopol.gov
Proposals must be received by the due date and time. Late proposals will not be considered.

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Agenda Item Number 9
City of Sebastopol Request for Proposals – Cost Allocation Plan

TABLE OF CONTENTS
Section Page
I. Introduction 4
II. Background 5
III. Project Objectives 5
IV. Scope of Services 6
V. Submittal Requirements 8
VI. Submission of Proposal 9
VII. Selection Criteria and Process 9
VIII. Anticipated Timeline 10
IX. Questions, Addenda, and City Website 10
X. Attachments 10
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Agenda Item Number 9
City of Sebastopol Request for Proposals – Cost Allocation Plan I. INTRODUCTION
The City of Sebastopol ("City") is soliciting proposals from qualified professional consulting firms ("Consultant" or "Proposer") to conduct an independent evaluation of the City's existing cost allocation methodologies and develop an updated Cost Allocation Plan ("CAP" or "Plan"). The selected Consultant will review the current Cost Allocation Plan, evaluate existing allocation methodologies and practices, identify opportunities for improvement, and prepare a transparent, defensible, and user-friendly Cost Allocation Plan together with a flexible, well-documented Excelbased model that City staff can maintain and update annually.

The City seeks a Plan that accurately allocates costs among departments, funds, and programs; supports informed financial decision-making; enhances transparency; and provides a sustainable framework for future annual updates. The City also seeks recommendations regarding allocation methodologies, cost recovery practices, timebased costing approaches, and other improvements that may strengthen the accuracy, equity, and defensibility of cost allocations, particularly as they relate to enterprise fund operations.

There is no expressed or implied obligation for the City to reimburse responding firms for any expenses incurred in preparing proposals in response to this Request for Proposals (RFP). The City reserves the right to retain all proposals submitted and to use any ideas contained within a proposal regardless of whether the firm is ultimately selected.

Submission of a proposal indicates acceptance of the conditions contained in this RFP unless specifically noted in the proposal and subsequently agreed to in the final professional services agreement.

To be considered, one electronic copy (PDF) of the complete proposal must be received by the City no later than October 14, 2026 at 5:00 p.m. PDT
Proposals shall be submitted electronically to:
[email protected]
with the subject line "[FIRM NAME] – Cost Allocation Plan RFP." Late proposals will not be considered.

The City reserves the right to reject any or all proposals, waive minor irregularities, request additional information from proposers, and negotiate with the selected firm as necessary to achieve the objectives of this RFP.

It is anticipated that consultant selection and contract award will occur on November 17, 2026, with the project kickoff scheduled for December 1, 2026. A draft report and model are expected by January 19, 2027, with final deliverables, training, and Council presentation anticipated on February 16, 2027.

A. Term of Engagement
The City intends to enter into a Professional Services Agreement with the selected Consultant for the development of a Cost Allocation Plan and supporting model. The agreement will be based on a time-and-materials compensation structure with a not-to-exceed contract amount and a clearly defined scope of work.

Progress payments will be made monthly based on actual hours worked and approved reimbursable expenses. The City will retain ten percent (10%) of all payments until final acceptance of the Cost Allocation Plan, Excel model, and all required deliverables.

B. Inquiries
All questions regarding this RFP, the proposal process, or technical aspects of the project shall be submitted electronically to:

Mary Gourley, City Manager
[email protected]
To ensure a fair and consistent procurement process, proposers shall not contact City Council members, Enterprise Fund Oversight Committee members, or other City employees regarding this RFP. Unauthorized contact may result 7120 Bodega Avenue, Sebastopol, CA 95472 Page 4
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Agenda Item Number 9
City of Sebastopol Request for Proposals – Cost Allocation Plan in disqualification from further consideration.

II. BACKGROUND
The City of Sebastopol is a general law city located in western Sonoma County, California, approximately 50 miles north of San Francisco. With a population of approximately 7,521 (2020 Census), Sebastopol is known for its agricultural heritage, commitment to sustainability, vibrant downtown, and high quality of life.

The City operates under a Council-Manager form of government with a five-member City Council elected at-large to staggered four-year terms. The Council appoints the City Manager and City Attorney.

The City provides a full range of municipal services, including police services, public works (streets, facilities, and parks), planning and building services, and administrative services. The City also owns and operates water and wastewater utility enterprise funds. Fire protection services are provided by the Gold Ridge Fire Protection District.

The City's most recently adopted budget (FY 2026-27) totals approximately $17.9 million. The adopted budget and supporting financial information are available on the City's website at City Budget Documents. The budget reflects ongoing fiscal challenges, including a projected General Fund deficit.

The City initiated a comprehensive review of its cost allocation methodology in FY 2023-24, resulting in the development of a new Indirect Cost Allocation Plan prepared by ClearSource Financial Consulting. The plan was presented to the City Council in February 2024 and incorporated into the FY 2024-25 budget, representing the first comprehensive review of the City's cost allocation practices since 2002. The plan is updated annually to support the City's ongoing commitment to financial transparency, accountability, and equitable cost allocation practices.

Separately, the Sonoma County Civil Grand Jury issued a report in May 2026 that addressed municipal cost allocation practices.

The City is now seeking an independent evaluation of its current cost allocation methodologies and the development of an updated, transparent, defensible, and user-friendly Cost Allocation Plan. The selected consultant will assess existing methodologies, evaluate alternative allocation approaches where appropriate, and provide recommendations that support equitable cost recovery, financial transparency, and informed decision-making.

The City seeks a qualified consultant to perform a comprehensive review and update of the Cost Allocation Plan.

The goals of this engagement include ensuring the Plan remains current with the City's organizational structure, services, and financial data; enhancing the transparency and usability of the supporting model; strengthening compliance with applicable legal and regulatory requirements; and supporting accurate and equitable allocation of costs among City departments, funds, and programs.

In addition, the Enterprise Fund Oversight Committee has expressed the importance of ensuring that enterprise fund allocations are transparent, understandable, and supported by clearly documented methodologies. The City encourages proposers to evaluate allocation approaches that are readily traceable to underlying cost drivers and that support compliance with applicable Proposition 218 and Proposition 26 requirements governing utility rates, fees, and charges.

III. PROJECT OBJECTIVES
The primary objective of this engagement is to produce a high-quality, defensible Cost Allocation Plan and accompanying dynamic model that enables the City to:

1. Accurately identify and allocate appropriate direct, indirect, and overhead costs across City departments, funds, services, and functions using well-documented, supportable methodologies.

2. Support transparent and equitable cost recovery, internal service charging, grant reimbursement claims, and enterprise fund allocations through methodologies that are clearly documented, readily traceable, and understandable to City staff, decision makers, auditors, and the public.

3. Provide City staff with a flexible, well-documented Excel model that can be easily updated annually or as Agenda Item Number 9
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Agenda Item Number 9
City of Sebastopol Request for Proposals – Cost Allocation Plan organizational changes occur, including the ability to perform scenario analyses for new or modified services.

4. Deliver clear documentation, training, and ongoing support so that the Plan and model remain practical management tools rather than static reports.

5. Identify policy, procedural, operational, or structural recommendations that would improve the City's cost accounting, cost recovery, and allocation practices.

6. Evaluate and recommend allocation methodologies that support compliance with applicable legal requirements, including Proposition 218 and Proposition 26 principles governing utility rates, fees, and charges.

7. Evaluate opportunities to utilize direct cost allocation, documented labor hours, activity-based costing, or other actual cost methodologies where practical and supportable, rather than relying exclusively on indirect allocation percentages.

IV. SCOPE OF SERVICES
The Consultant shall perform all work necessary to achieve the project objectives. The following scope is provided as a baseline; Proposers are encouraged to suggest refinements, enhancements, or alternative approaches that would deliver superior value while remaining within a reasonable budget and timeline.

Task 1: Project Initiation and Scope Refinement
• Conduct a kickoff meeting (virtual or on-site) with key City staff (City Manager, Administrative Services Director, department heads, and Enterprise Fund Oversight Committee representatives as appropriate) to confirm project goals, scope, timeline, data needs, and communication protocols. • Review and discuss the City’s current FY 2025-26 Cost Allocation Plan, the May 2026 Sonoma County Civil Grand Jury report, Enterprise Fund Oversight Committee work, and any specific concerns or priorities identified by the City.
• Finalize a detailed work plan and data request list.

Task 2: Data Collection, Review, and Interviews
• Collect and review current and prior-year budgets, actual expenditure data, organizational charts, position control, time studies (if available), existing allocation methodologies, and supporting documentation. • Conduct interviews and/or working sessions with department directors and key staff to understand operational activities, time allocation, service levels, and any unique cost drivers or allocation challenges. • Document current practices, identify gaps or inconsistencies in the existing CAP, and note areas where allocation bases may be improved for defensibility or equity (particularly for water and sewer enterprise funds).
• Assess the City's current staff time tracking systems, time studies, and timekeeping processes. Identify gaps in time tracking data and recommend improvements or a time tracking framework/module to support accurate, ongoing cost allocations and future Plan updates.

Task 3: Development / Update of Cost Allocation Model and Plan • Develop or substantially update a comprehensive Cost Allocation Model in Microsoft Excel (or mutually agreed equivalent) utilizing the most recent adopted budget (FY 2026-27) and available actual data. • The model shall meet or exceed the following requirements:
o Full allocation of General Fund and other central service costs (finance, HR, IT, City Manager, Clerk, facilities, etc.) to benefiting departments and funds using appropriate, documented allocation bases. o Clear identification of direct costs, indirect/overhead costs, and resulting full cost of services by Agenda Item Number 9
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Agenda Item Number 9
City of Sebastopol Request for Proposals – Cost Allocation Plan department/function.
o Specific, transparent allocation to the Water and Sewer Enterprise Funds consistent with industry standards and applicable Proposition 218 and Proposition 26 requirements. The methodology shall be clearly documented and easily traceable to underlying cost drivers, allocation bases, and supporting data.
o Ability for the City to easily add, revise, or remove cost pools, allocation bases, or organizational units from year to year.
o Built-in scenario / "what-if" capability to estimate costs of new or expanded services. o User-friendly interface with clear instructions, dropdowns or input cells where appropriate, and automated calculations.
o Identification of the total cost of providing each City service at the appropriate activity level and in a manner consistent with all applicable laws, statutes, rules, and regulations governing the collection of fees, rates, and charges by public entities.
o Determination of the appropriate General and Administrative overhead allocations to City activities and applicable overhead rates for use in calculating theCity’s billable hourly rates. o Evaluate existing allocation methodologies and allocation bases and recommend modifications as necessary to improve transparency, defensibility, equity, and consistency with applicable legal requirements governing utility rates, fees, and charges. The Consultant should not assume that prior allocation percentages remain appropriate without independent analysis. o Evaluate alternative methodologies, including the feasibility of direct charging of enterprise-related activities based on documented labor hours, operational activity, or other measurable service drivers where appropriate.
o Review allocation methodologies to identify and minimize potential duplication of costs between Water and Wastewater operations and other City functions. o Prepare a written Cost Allocation Plan report that documents the methodology, allocation bases, resulting percentages/rates, key assumptions, supporting rationale, and any recommendations for policy or procedural improvements. The report shall clearly explain the basis for enterprise fund allocations and document how the selected methodology supports transparency, traceability, and defensibility.

Task 4: Reporting, Presentations, and Training
• Conduct a minimum of two (2) meetings/presentations with the Enterprise Fund Oversight Committee (EFOC) and/or Budget Committee —one to present and review the draft Plan and model, and one to address feedback and revisions as needed.
• Deliver a minimum of two (2) presentations to the City Council — one preliminary presentation of the draft findings and one formal presentation of the final Cost Allocation Plan and model for adoption. • Provide comprehensive documentation including a user guide or instructions for annual model updates. • Conduct one (1) on-site or virtual training session (2–3 hours) for designated City staff on maintaining and updating the model and Plan.
• Remain available (at no additional cost beyond reasonable expenses) for up to 12 months after final delivery to answer questions or assist with minor refinements, and to support the City in the event of an audit or challenge to the Plan (subject to a mutually agreed scope and rate for significant additional work).

Task 5: Deliverables
• Final Cost Allocation Plan report in editable Microsoft Word format (and PDF). • Fully functional, documented Excel Cost Allocation Model with all supporting schedules, allocation worksheets, summary reports, and user instructions.
• Executive summary suitable for Council and public distribution. • Presentation materials (PowerPoint) for staff and Council meetings.

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Agenda Item Number 9
City of Sebastopol Request for Proposals – Cost Allocation Plan • Training materials and recorded session (if virtual) or detailed notes. • All working papers and source data files organized and provided electronically. • Memorandum documenting compliance with Proposition 218 and Proposition 26 principles and explaining the rationale for enterprise fund allocation methodologies.

V. SUBMITTAL REQUIREMENTS
To be considered responsive, proposals must address all items below in the order presented and be clear, concise, and professionally presented. Proposals should demonstrate the firm's understanding of the City's needs, relevant experience, and proposed approach.

A. Cover Letter / Transmittal Letter
The letter must be signed by an individual authorized to bind the firm contractually. It should briefly state the proposer's understanding of the work, commitment to perform within the stated timeline, why the firm believes it is best qualified, and confirmation that the proposal is a firm offer for 120 days. Include name, title, address, phone, and email of the primary contact person.

B. Project Approach and Proposed Scope of Work
Provide a detailed description of the firm's proposed approach, including how the City’s current FY 2025-26 Cost Allocation Plan will be leveraged, any recommended enhancements to the scope or methodology, phased work plan with measurable deliverables, quality control processes, and communication plan with City staff.

C. Project Schedule and Timeline
Submit a realistic project schedule (Gantt chart or detailed table) from kickoff through final Council presentation and training. Identify critical path items and any assumptions regarding City staff availability or data turnaround times.

D. Experience and Qualifications
Provide a brief history of the firm (year established, ownership, primary location, relevant service lines). Describe the firm's specific experience completing Cost Allocation Plans or similar fiscal studies for California cities, counties, or special districts—preferably those of comparable size with enterprise utility funds. Highlight any work involving water/sewer allocations, review of Grand Jury reports, or complex multi-fund environments. Note key program advantages that differentiate the firm.

E. Sample Completed Reports
Provide (or make available via secure link) two (2) recent examples of Cost Allocation Plans or comparable comprehensive fiscal studies the firm has completed for California local government clients. Include a brief description of the project scope and outcome for each.

F. References
Provide a minimum of three (3) client references for similar work performed within the past five (5) years. For each reference include: client name and location, project description and dates, key personnel assigned from your firm, client contact name/title/phone/email, and whether the project is complete.

G. Resumes and Qualifications of Proposed Personnel
Identify the proposed Project Manager/Lead Consultant and all key team members, their roles, office location, relevant experience (especially CAP work for CA agencies), education, certifications, and licenses. Attach brief resumes (1–2 pages each) for key personnel. The lead consultant should have substantial hands-on experience developing defensible cost allocation plans.

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Agenda Item Number 9
City of Sebastopol Request for Proposals – Cost Allocation Plan H. Fee Schedule and Cost Proposal
Submit a detailed fee proposal on a task-by-task basis. Include:
• Estimated total hours and not-to-exceed fee for the entire scope. • Breakdown by major task/phase showing hours by personnel classification (Partner/Principal, Senior Consultant, Analyst, etc.) and applicable hourly rates. • Standard published hourly rates for all proposed personnel (these rates will be used for any authorized additional work).
• Assumptions underlying the estimate (e.g., number of on-site visits, data availability, City staff support level). • Identification of any reimbursable expenses (travel within the Bay Area/North Bay is generally not reimbursable unless pre-approved; virtual meetings are preferred where effective).

The City will not be responsible for costs incurred in preparing the proposal.

I. Conflict of Interest
Disclose any actual or potential conflicts of interest. The City will not contract with a firm if any principal, officer, or immediate family member has served as an elected official, employee, or board/commission member of the City who could influence the contract, or if any financial interest would be affected by the engagement. Proposals may be disqualified on conflict grounds.

J. Proposed Changes to Standard Agreement
The selected firm will be required to execute the City's standard Professional Services Agreement (sample available upon request). Any requested modifications to the standard terms (insurance requirements, indemnification, ownership of documents, etc.) must be clearly stated in the proposal. The City reserves the right to reject proposals with unacceptable modifications.

K. Insurance and Other
The selected Consultant will be required to maintain insurance meeting or exceeding the City's minimum requirements (Commercial General Liability $1M/$2M, Auto $1M, Workers' Compensation statutory, Professional Liability $1M/$2M). A certificate of insurance naming the City as additional insured will be required prior to contract execution. Proposers should confirm ability to meet these requirements.

VI. SUBMISSION OF PROPOSAL
Proposals must be submitted electronically as a single PDF file to Mary Gourley at [email protected] no later than October 14, 2026 at 5:00 p.m. PDT. The email subject must read: "[FIRM NAME] – Cost Allocation Plan RFP". Proposals received after the deadline or that are incomplete will not be considered. The City reserves the right to reject any or all proposals, to waive minor irregularities, and to negotiate with one or more proposers.

VII. SELECTION CRITERIA AND PROCESS
Proposals will be evaluated based on the following criteria (not necessarily in order of weight):

1. Quality, completeness, and professionalism of the proposal and responsiveness to RFP requirements.

2. Demonstrated relevant experience performing Cost Allocation Plans and similar fiscal studies for California local governments, especially cities with enterprise utility funds.

3. Qualifications, experience, and availability of the proposed project team and lead consultant.

4. Soundness and creativity of the proposed approach and methodology, including how the existing CAP will be utilized and improved.

5. Reasonableness of the proposed fee relative to scope, and demonstrated ability to complete the project on schedule.

6. Strength of references and past performance on similar engagements.

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Agenda Item Number 9
City of Sebastopol Request for Proposals – Cost Allocation Plan

7. Proposed management/communication plan and value-added recommendations.

After initial review, the City may invite one or more firms for interviews (virtual or in-person) or may proceed directly to contract negotiations with the highest-ranked proposer. Interviews, if held, are anticipated during the week of October 26, 2026. The City reserves the right to cancel this RFP, reject any or all proposals, or waive minor informalities if it is in the City's best interest.

VIII. ANTICIPATED TIMELINE
Note: The City reserves the right to adjust this schedule at its sole discretion. Proposers should build reasonable flexibility into their own schedules.

Date Milestone
September 23, 2026 RFP Issued
September 30, 2026, at 5:00 p.m. PDT Deadline for Written Questions Week of October 5, 2026 City Responses and Addenda Issued October 14, 2026, 5:00 p.m. PDT Proposals Due
Week of October 26, 2026 Interviews (if required)
November 17, 2026 (City Council Meeting) Proposed Contract Award December 1, 2026 Project Kickoff Meeting
January 19, 2027 Draft Report & Model to City Staff
February 16, 2027 (City Council Meeting) Final Report, Model, Training & Council Presentation IX. QUESTIONS, ADDENDA, AND CITY WEBSITE
All questions must be submitted in writing via email to Mary Gourley at [email protected] with the subject line "Cost Allocation Plan RFP Question – [FIRM NAME]". Questions must be received by the deadline listed in the timeline. Questions received after that date will not be answered. Responses to questions and any addenda will be posted on the City's website (www.cityofsebastopol.gov) under the Bids, RFPs, or Purchasing section (or equivalent). Proposers are solely responsible for checking the website for addenda prior to submitting a proposal.

Oral communications are unofficial and non-binding.

X. ATTACHMENTS
The following will be made available upon request or via the City's website:
• Attachment A: Sample City of Sebastopol Professional Services Agreement (standard boilerplate) • Attachment B: Most Recent Adopted City Budget (FY 2026-27) and Organizational Charts (Budget Documents) • Attachment C: Current Cost Allocation Plan (FY 2025-26) for Reference (Cost Allocation Plan) • Attachment D: Relevant Financial Policies and Prior Studies, as Applicable (Budget and Financial Policies) By submitting a proposal, the Proposer acknowledges that they have read, understand, and agree to comply with all terms and conditions set forth in this Request for Proposals.

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Sebastopol City CouncilOctober 20, 2026

Sebastopol City Council
October 20, 2026