25C - AGMT INDIRECT COST ALLOC PLAN

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proportionality (acceptable), such as sources outside of the ISF rate structure, personnel counts, budget size, etc. where applicable (e.g., grants, external Acquisition of statistical information from City databases will likely be requested throughout the study as issues for further analysis arise. Task 3 1 Revenue Requirement Forecast The purpose of this task is to develop the financial plan that serves as the foundation for cost of service and cost recovery requirements for each fully self -supported internal service fund. It will produce a multi -year forecast-5 to 10 years — of fund needs and estimated performance. TASK 3.11 OPERATING FORECAST ClearSource will prepare a forecast of operating revenues and expenses in each fund, built from prevailing levels (e.g., adopted budget) and forecasted by applying industry inflation metrics and/or City -specific historical patterns and known schedules. Attention will also be paid to expenses that do not follow a yearly spending pattern. This will yield total annual recurring expenses and corresponding annual revenues in each year of the forecast. TASK 3.2 ( CAPITAL FORECAST ClearSource will prepare a forecast of capital revenues and expenses in each fund, built from established plans of each internal service fund and/or historical activity. Capital investments encompass ongoing, annual levels of rehabilitation and/or replacement of assets, as well as specifically identified projects (e.g., major replacements or widely applied improvements). Revenues encompass cost -sharing, special fees, or negotiations) and capital replacement components embedded in the ISF rate structure itself for long-term asset management. This forecast will yield annual burdens to the fund in each year of the total financial plan. TASK 3.3 j FUND PERFORMANCE FORECAST ClearSource will model yearly cash flow in each internal service fund, identifying 0 Beginning cash balances. :D All inflows and outflows stemming from the forecasts. Ending cash balances. Attainment of established or recommended fiscal policies. Health of dedicated reserves for bother operations and capital requirements. TASK 3.4 1 RESERVE FUNDING ANALYSIS Stemming from the fund performance forecast, ClearSource will develop a reserve funding target to level annual burdens demonstrated. This identifies a component of the overall rate burden intended to accumulate cash balance in the fund in advance of peaks in spending, typically caused by any noteworthy periodic operating expenses or, more often, by specific capital investments anticipated in certain years of the forecast or over longer -term life cycles of major assets, such as facilities or core infrastructure. Reserve components in rates provide an ongoing revenue source for long-term asset management and yield CLEARSOURCE PROPOSAL TO THE CITY OF SANTA ANA 25C-21 SECTION 4