AGENDA #6c
BUDGET WORKING PAPER
TO: W. Calvin Horton, Town Manager
FROM: Bob Avery, Information Technology Director
SUBJECT: Information Technology Goals and Initiatives
DATE: May 12, 2005
At the Town Council Public Forum on Budget and Related Items conducted on March 23, 2005 the Technology Committee presented a budget recommendation that included both a strategic plan and cost-saving measures for the FY 2005-2006 budget. This memorandum is provided in response to the Committee’s Strategic Plan.
BACKGROUND
The Technology Committee’s strategic plan included three component areas – Geographic Information Systems (GIS), Web, and Infrastructure. Each area included several steps and recommendations for improving information technology capabilities within the Town and information access for the public. Some of the steps could be undertaken immediately and some identified an approach or methodology that could be undertaken over a longer time frame.
Some of the strategic plan items are also included in the Committee’s recommendations for cost saving measures; comments regarding the cost saving aspects of these items were included in a separate budget working paper presented at the Budget Working Session on April 27, 2005. Both strategic and cost savings recommendations are included in this paper.
The Information Technology Department, together with Town staff, has been working on a number of projects to improve the Town’s ability to deliver services and provide information to our citizens. The Committee’s recommendations provide a number of new initiatives in areas common to the Town’s projects. To provide a more complete picture of the overall initiatives, a list of Information Technology Goals and Initiatives for 2005-2006 has been prepared to consolidate both Town and Committee objectives. The list is included as attachment (1).
The Technology Committee has devoted considerable effort in looking at technology issues and developing recommendations for moving the Town forward. Their effort is greatly appreciated and will no doubt benefit the citizens of Chapel Hill. A number of the Committee’s proposals will require further staff evaluation before attempting to implement the recommendation; this staff review will be done over the next few months. There are also some proposals to utilize consultants to analyze certain aspects of web services, security, emergency planning, and systems management. The RFP’s will likewise be further evaluated before a decision is made to proceed. Staff analysis of needs and requirements is needed regardless of whether an RFP for a consultant is deemed appropriate or not.
BUDGET IMPLICATIONS
GIS proposals: Two key items, funding for additional software and training and the addition of a GIS analyst to the Information Technology Department, are included in the Manager’s Recommended Budget. The software and training costs of $20,000 are built into the Information Technology budget and the analyst position is included as a proposed ADD item with a first year cost of $62,000.
Web proposals: The web site improvements have begun under the auspices of the CivicPlus “Extreme Makeover” award. This will save the equivalent of $50,000 over two years. CivicPlus will provide web development and hosting resources that might have otherwise been spent through an RFP and contract process. Necessary items for the initial web site upgrade are already included in the Information Technology budget.
The Technology Committee has a number of near term and long term web goals that will continue to be pursued.
Infrastructure proposals: There are several recommendations for improving identification of technology related costs for budget planning and expenditure analysis. An initial review by the Finance Department indicated there was no quick solution for the proposed changes to the financial management system but that the recommendations would be further reviewed in the next few months to see if changes can be instituted in the future.
The proposal to revise the computer replacement cycle for computers, in particular desktop and general purpose laptop computers, has been reviewed and changes have been made to the Computer Fund to reflect a revised buying cycle. We have not determined the model (tiered system, performance based, calendar rotation, or other model) but we have arrived at a budget number that we believe can provide some flexibility as may be needed to meet departmental needs and still allow a significant reduction in the annual expenses for computer replacement. The proposed overall equipment purchase allowance in the computer fund is being reduced from $212,000 (this year) to $150,000 for FY 2005-2006. That is, the new budget will authorize the purchase of $150,000 of replacement equipment next year. Some of the reduction in the Fund - $20,000 - is being moved to the IT Capital Equipment line to allow purchasing servers. The net result of these changes is an overall reduction of $42,000 in the allowable computer replacement purchases in next year’s budget as compared to the current year.
Because of the outstanding loans, the projected net dollar reduction for the General Fund in next year’s computer fund works out to roughly $12,000. This cost reduction would grow to the equivalent of the full $42,000 over the next few years assuming the equipment purchases remain at the $150,000 level. The Manager’s recommended budget shows the change in the Computer Fund Charges to the General Fund as a $32,000 reduction. The Recommended Budget also reflects the increase of $20,000 in the Capital Equipment for the Information Technology Department budget. Thus there will be a net reduction for the General Fund of $12,000 that will grow over time.
As a separate item, the equipment list proposed for purchase this (current) year has been revised to approximately $192,000 which is a $20,000 reduction from the $212,000 authorized by FY 2004-2005 Approved Budget. This would still purchase the same items (desktops, laptops, Police MDT’s, server) but lowers the individual costs of some of the equipment. The approval of this purchase is recommended.
The net of both items – reduction of equipment purchases of $20,000 in current year, and $42,000 in the next several years is consistent with the Technology Committee’s Cost Reduction recommendation of $20,000 in the first year and $50,000 within three years as presented to the Town Council on March 23.
RECOMMENDATIONS
1. Continue to pursue the Information Technology Goals and Initiatives as listed in attachment (1).
2. Approve Finance Department’s recommended loan request for the Computer Fund in order to purchase computer equipment for this year (FY 2004-2005).
ATTACHMENT
1. Information Technology Goals and Initiatives for 2005-2006 (p. 4).