INTER-OFFICE MEMORANDUM April 27, 2026
TO: Klarissa J. Peña, President, City Council
FROM: Timothy M. Keller, Mayor
SUBJECT:
title
Capital Implementation Program (CIP) Indirect Overhead (IDOH) FY27
body
The attached memo provides justification of the CIP IDOH as required by O-26-03.
IDOH represents the City’s cost of providing essential services such as financial management, procurement, legal support and project oversight that are required to deliver capital projects.
As stated in the attached memo, the FY27 Proposed Budget reflects the application of a 5% Indirect Overhead (IDOH) rate across applicable capital projects. Based off of the calculations outlined in the memo, both before and after the passage of O-26-03, a 5% IDOH rate for FY27 falls between the 5.51% and 4.67% calculations, and is a reasonable application for FY27.
In the spirit of collaboration, the Department of Finance and Administration respectfully requests City Council approve this Executive Communication and adopt a 5% IDOH rate for FY27.
SUBJECT: Capital Implementation Program (CIP) Indirect Overhead (IDOH) FY27
Approved: Approved as to Legal Form:
_______________________ ____________________________
Samantha Sengel, EdD Date City Attorney Date
Chief Administrative Officer
Recommended:
_______________________
Director Date