HomeMy WebLinkAbout6 Overhead Rates Agenda Item #
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ublic Utility District
Memorandum
To: Board of Directors
From: Peter Holzmeister
Date: November 8, 2006
Subject: Accounting overhead rates
Why this matter is before the Board: This matter involves adoption of a
resolution approving the accounting overheads for 2007.
History: As part of the budget each year, we prepare a series of overhead rates
that allocate indirect costs to associated projects so that the costs of those
projects reflect their full cost. The appendices in the back of the draft budget for
2007 show the calculation of overhead rates that we suggest using during 2007.
A workshop dealt with this matter. Each year, at the time the annual Budget is
adopted, the Board also adopts by resolution the overhead rates.
New information: Attached for your review and consideration of a draft
resolution incorporating the recommended overhear rates for 2007. The
recommended overhead rates come directly from the Budget appendices.
Recommendation: I recommend that the Board adopt the resolution approving
the accounting overhead rates for 2007.
r
#UCKEE S
Public Utility District
Resolution No. 2006 - XX
ADOPTING THE OVERHEAD RATES FOR THE 2007 BUDGET
WHEREAS the Board of Directors and staff of the District participated in departmental workshops in the
months of August, September and October of 2006 to review the draft Budget for 2007; and
WHEREAS the draft budget for District operations and capital spending for the year 2007 recommends
certain accounting overhead rates; and
NOW THEREFORE BE IT RESOLVED by the Board of Directors of Truckee Donner Public Utility
District adopts the following budget overhead rates:
Overhead Item Overhead Rate
Labor Overhead 86.24%
Transportation Overhead 27.81%
Inventory Overhead 21.31%
Administrative Overhead 1.19%
Construction Overhead 32.20%
Non-inventory Material Overhead 25.00%
PASSED AND ADOPTED by the Board of Directors at a meeting duly called and held within the District on
the fifteenth of November 2006 by the following roll call vote:
AYES:
ABSTAIN:
NOES:
ABSENT:
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
By
J. Ron Hemig, President
ATTEST:
Peter L. Holzmeister, Clerk of the Board