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~hc first step in tbe precess Yoi<.1S to identify stlff time spent dircctly on cach of :he user fce activities, :=a.ch staff pcrsonnvol'lcd n the uscr fee services idcn:ificd :imc spent to completc each task a:sscc:iatcd wit, aH user :cc SCf'l:ces. Annual 'Iolume statistics wc..c also gzthered in order to dcvelup ~o:.dl dllllUill 'lVolklodJ illformdLioll. S,dary dud benefit <.Iolldl ~ wel e d~~i;.rled to tile lime ~tiTldlC~ ~o lOIllt: up with the dire:.:: ~Laff (mt~. Indirect Costs. A p~oport,onatc share of indirect cost was layered onto thc di"cct costs to calculate t1e fuly burdcncc COSt of each fee related selVlc(> _ Th{'f(> are- two types of md lI'"C'Ct costs: A:?:C1CY Indirect Costs: thcse are adm nistrat....e and supervisory costs buc,getcd wi:hin the particubr agency. General material and supplies costs also fall in t!-is category. These costs are added to the direct cost calculations. Cirvwide IndirE":r:r. emt!';: these costs stem from support received from orher C:ry departmenrs M;my of thE! r:mts th;lt suppor.: itIl city program~ and se'Viccs arc bud,getcd in centT<!.l!zed ilctivities suen as Finznda Management. which p''''ov:dcs payrol budgeting and acr:ounting support, ;J"d City Attorney. which provides legal services. The costs of these and Ocher cent'"illizcd services are ccnsidc"ed inarect ovemead that support fec-for-service activities, as well as other programs and functions within the city. As j:arc of this Study, MGT developed an indirect COSt allocaron plan that Identifies and distributes these indirect COStS to all ope:ra~jng programs ;md functions within tl1p. City's organiZil,jon::l1 ~""Jrfllre. The r:o~ ::IlloGltion phn T~k('s a det~:Ip.d ;approach to analyzing indirPC"t costs MGT interviewed staff d.nd analyzed data w thin cact'1 central activity to de:ermine: Wh:u Indirect support functions are provided (e.g. p;:ayroli, leg;ll services. building rm'nrenance. eoc) 2. How to ailocate centraily budgeted personnel and other operating expenses into these functions. 3. Wh,ch deparunenlS receive benefit from these services (e.g. payro;! services ",,"efit all deparcllencs mat have budgeted staff. City Hall maintenante benefts all deparunents that are housed wid1in City Hall). :lJ CD en o s: 5' ::> "Uz OJ 0 '" . CD", ~O eno o'P -0 w~ CX>CX> .. How to identify the best method of a'locClong these costs to the users (e.g. information tcchno:ogy services are allocated ba~d QlIlh~ numL~r of users .U1d applications in eadt department). The end result of this ana'ysis is me allocCltion of all indirect costs to all operating dcparunents Clnd prograiT'ls. The indirect costs arc tIlen added co tile direa COsts to determine the full cost of gJj ciI)' operations - whether fee-related or not. This accounting exerc:se is important'" that it em result 'n an increase in general fund revenues for reimbursement of support for user fee services and state or federally funded pro~rams. MGT CT ,.. W <0 2; '" Of A,lUll~". I~C.