BUDGET REVIEW TECHNOLOGY SERVICES

SEPTEMBER 25, 2013 2014 BUDGET PRESENTATION TO CITY COUNCIL

Technology Services Strategic Overview

Citywide Vision: We will deliver a world-class city where everyone matters TS Vision:
We will become the nations model for delivery of technology, media, and contact center services for local government
Mission: We exist to improve the lives and experiences of the citizens, businesses, and employees of Denver by providing technology solutions and business services that are efficient, effective, and secure.
Goal1: Foster a culture of employee engagement to improve productivity, accountability, and continuous improvement. Goal 2: Master operational efficiency so that we can shift our time and resources to be more impactful for our clients.
Goal 3: Understand, quantify, and improve the productivity and satisfaction of City Agencies to enable them to improve and transform their business.

Goal 4: Put government information and services in the hands of Citizens, anytime, anywhere, any channel, so they receive the best experience possible.

Strategy 1.1: Attract and retain a skilled and motivated IT workforce.

Strategy 2.1: Document and execute repeatable operational processes, consistent with industry best practices.

Strategy 3.1: Develop an effective system to understand agency businesses and needs.

Strategy 4.1: Transform Denver 8 to a media services model.

Strategy 1.2: Develop a plan to staff TS in a sustainable manner, consistent with the goals of this strategic plan.

Strategy 2.2: Develop or procure tools to effectively manage operational systems and processes.

Strategy 3.2: Develop Portfolio and Project Management Processes

Strategy 3.3: Develop a plan for light technologies and policies for agencyempowered solutions.

Strategy 4.2: Prepare and equip 311 to engage citizens proactively and through multiple contact channels.

Strategy 1.3: Execute a plan to address deficiencies and opportunities identified in the 2011 Employee Survey.

Strategy 2.3: Adopt a cloudfirst strategy for services or infrastructure where hosted services are a higher value.

Strategy 4.3: Improve access to Government Information. Strategy 4.4: Improve delivery of services via electronic channels, including proactive capabilities.
Strategy 4.5: Create a comprehensive strategy for social media.

Strategy 1.4: Invest in Lean Six Sigma to equip all levels of TS with the process tools needed to improve our business.

Strategy 2.4: Modernize Data Centers and Infrastructure where doing so improves service or reduces risks. Strategy 2.5: Realize the full value of our enterprise architecture and enterprise applications.

Strategy 3.4: Facilitate work anytime, anywhere mobility and collaboration.

Strategy 1.5:Invest in employee technical training in support of this strategic plan, and consistent with industry best practices

Strategy 2.6: Develop a sustainable funding model for Technology Services, consistent with the goals of this strategic plan.

2014 City Council Presentation Technology Services

Strategy 4.6: Invest in delivery of information and services to mobile devices anytime, anywhere access for citizens.

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Technology Services Mission Level Metrics

Priority Metrics 2011 2012 2013 YTD 2014 Projected Status Quo 7.2 1.85 99.42% 3.21 2014 Projected Expansion 8.5 (Estimated) 2.25 (Estimated) 99.57% 4.2 2014 Projected Reductions N/A N/A N/A N/A

Employee Engagement IT Process Maturity Service Value Outages/Uptime Agency Satisfaction

5.8 1.85 98% N/A

N/A 1.85 98.98% 3.21

7.2 1.85 99.42% TBD

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Technology Services Organization Chart

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Technology Services Base Budget Overview

Expenditures
General Fund Special Revenue Fund Other Funds Capital Improvement Fund TOTAL

2011 Actual
$33,802,830 $3,804,212 $0 $11,938,000 $49,545,042

2012 Actual
$35,608,623 $4,856,005 $0 $15,922,000 $56,386,628

2013 Revised
$40,597,485 $3,730,680 $0 $19,420,400 $63,748,565

2014 Proposed Base

$45,971,700 $3,061,148 $0 $20,022,600 $69,055,448

Variance
$5,374,215 ($669,532) $0 $602,200 $5,306,883

Summary of 2014 Budget Proposal Expenditures

General Fund Increase is due to the following: Strategic Resource Alignment 2013 rolling to Technology Services General Fund operating budget. Conversion of 3.0 limited positions to a permanent FTE and contract dollars to 5.0 permanent FTE. Movement of cellular telephone charges from General Fund agencies to Technology Services. An increase in services and supplies due to iFund projects rolling to the General Fund operational costs and maintenance. Special Revenue Fund A decrease in SRF due to the consolidation of all General Fund cellular telephone charges to Technology Services. Capital Improve Fund Comprised of General Fund pass-through dollars for the following: 1. Innovation and Technology Projects 2. Computer Replacement (desktops, laptops, and MDTs) 3. Radio Replacement (safety and non-safety) 4. Technology Infrastructure 5. Technology Services Strategic Resource Alignment 2014 decrease attributable to operationalizing 2013 SRA items for 2014

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Technology Services General Fund CSA Personnel Overview

Career Service Authority (CSA) Employees
Total Personnel Budget Comp Time Overtime On-Call Budget On-Call FTE Total FTE CSA

2011 Actual

2012 Actual

2013 Revised Budget

$25,221,129 $0 $43,400 $248,160 3.5 253.5

2014 Projected
$28,537,924 $0 $56,900 $195,580 3.5 275.9

$22,031,557 $13,187 $32,886 $280,758 3.5 255.5

$22,430,091 $16,721 $16,736 $254,164 3.5 251.5

Key Drivers: Comp time and overtime drivers are the 24/7 nature of providing critical IT support to service areas after hours via the service desk and electronic engineering bureau (Safety radio support). On-call drivers are Denver 8, 311, and the need to backfill critical technical positions upon becoming vacant while recruitment process unfolds. FTE Changes A total of 16.0 FTE moved from the Strategic Resource Alignment to the General Fund. A total of 5.0 FTE conversion of contract dollars to permanent FTE. A Deputy CIO position downgraded to 2.0 FTE.

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2014 Technology Services Operations Summary

Changes in Operations
$2.57m in 2013 SRA funds transferred to the General Fund. This allowed TS to operationalize 16.0 FTE from the SRA to the General Fund. Converted 3.0 limited positions to unlimited to support the enterprise applications.
Tax Compliance Systems 1 Database Administrator Enterprise Cashiering 2 Systems Analysts

Converted 2.0 contractor Project Managers to General Fund, previously funded by iFund projects (Savings?) Consolidated all General Fund agencies cell phone charges to TS. This will result in efficiency saving in 2014. Maintenance increase due to contracts, iFund projects, and technology purchases from other agencies.

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Strategic Resource Alignment Overview

Background:
In 2012, the City reached a point where the status quo delivery of Technology Services (TS) could no longer be sustainable. A TS-SRA project was conducted. The project determined options for sizing and structuring TS to meet desired service levels at sustainable funding levels. 12 main functional service areas were reviewed and evaluated, service level targets were developed, and service delivery options identified. It was determined that a total of about 88 FTE and $40 million in additional resources need to be invested in TS (including both operating and capital needs, and one-time and on-going needs).

History:
In 2012, $1.6 million was approved to take advantage of a deep year-end discount for needed SAN storage equipment For 2013, $2.5 million was approved to start meeting critical needs identified within the SRA and an additional $3.45 million was approved upon the passage of 2A For 2014, $2.6 million is included in the TS base budget to sustain SRA items implemented in 2013, which includes 16 FTE and ongoing maintenance and supplies, and $5.15 million is currently earmarked to sustain the 2A level of funding for further SRA implementation Total through 2013 - $7,550,000 and 16.0 FTEs
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2014 Strategic Resource Alignment

A Total of $5,150,000 will be Dedicated to Technology Services SRA includes the following: Infrastructure - $2,247,000
Redundant Internet Connection Phone System Replacements New Camera Management System Mobility Platform Standardized Development Tools and Platform Retirement of Legacy Applications Open Data Physical Network Security Information Security Geospatial (Maps) and Data Analysis
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Application Improvements - $ 1,520,000

Audit and Security - $555,000

Community Planning Around Kids and Data Enhancements- $450,000

2014 City Council Presentation Technology Services