HomeMy Public PortalAboutORD16416BILL NO.2023-088
SPONSORED BY Councilmember Hensley
ORDINANCE NO. k?1 //
AN ORDINANCE OF THE CITY OF JEFFERSON CREATING A NEW SECTION TO
THE CITY CODE RELATING TO ADMINISTRATIVE CHARGEBACKS.
BE IT ENACTED BY THE COUNCIL OF THE CITY OF JEFFERSON, MISSOURI, AS
FOLLOWS:
Section 1. Chapter 2 (Administration), Article I (Generally), Division 1 (Provisions
Generally Applicable) is hereby amended by creating a new Section 2-7 to read as
follows:
Sec. 2-7 Administrative Chargebacks
A. Background. The Government Finance Officers Association (GFOA) recommends
governments allocate their indirect costs, including shared administrative expenses where a
department/division incurs costs for support it provides to other departments/divisions.
B. Intent. The indirect cost allocation used l the City is referred to as the Administrative
Chargeback and operates as an internal billing to non -General Fund departments/divisions.
It is intended to account for charges for services provided a the General Fund
Administrative Departments in an effort to ensure City departments/divisions supported l
user fees are contributing toward the overall cost of operating the City and to illustrate
what it actually costs to operate each of these departments/divisions. For purpose of this
Section, "General Fund Administrative Departments" shall means the City Council, City
Administrator, City Clerk, Department of Law, Finance Department, Information
Technology Services Department, Human Resources Department, and Non -Departmental.
C. Method of Calculation. The Administrative Chargeback shall be calculated l utilizing the
most recent audited financial statements to calculate the percentage of total operating
expenditures for each City department/division. These percentages of total operating
expenditures are then multiplied j the amount of budgeted operating expenditures of all
General Fund Administrative Departments to calculate the amount of Administrative
Chargeback that will be budgeted as an expense to each non -General Fund
department/division within the City.
D. Utilization and Amendment. The City Administrator shall utilize the Administrative
Chargeback in preparation of the City Administrator's initial draft of the City's annual
budget. The Administrative Chargeback shall not be calculated j ny other method except
as expressly set forth in the ordinance approving the City annual budget.
E. Direct Costs. Nothing herein shall prevent budgeting for direct cost allocations to
departments/division that directly utilize services and personnel of other
departments/divisions.
Editor's note: Deleted language shown tiswis. Added language shown thus.
Section 2. This Ordinance shall be in full force and effect from and after the date
of its passage and approval.
Passed:
Presiding Offi
1r /PI 9.024
Approved: 0 3h /7 ---oz c
ATTEST:
APPROVED AS TO FORM:
Editor's note: Deleted language shown thus. Added language shown thus.