HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 03/04/2008 - FIRST READING OF ORDINANCE NO. 025, 2008, AUTHORIZ ITEM NUMBER: 15
AGENDA ITEM SUMMARY DATE: March 4, 2008
FORT COLLINS CITY COUNCIL STAFF: Tom Vosburg
SUBJECT
First Reading of Ordinance No. 025, 2008, Authorizing the Transfer of Existing Management
Information Services Appropriations from the General Fund to the Data and Communications Fund.
RECOMMENDATION
Staff recommends adoption of the Ordinance on First Reading.
FINANCIAL IMPACT
This Ordinance transfers the current Management Information Services (MIS) budget from the
General Fund to the Data and Communications Fund in the amount of $6,317,698. These
appropriations are funded by MIS charges to departments and other revenue ($2,320,813) and the
General Fund($3,996,885). In addition,all MIS related fixed assets estimated at a net value of$6.4
million will also be transferred to the Data and Communications Fund. This transfer has no
financial impact on the City.
EXECUTIVE SUMMARY
This Ordinance authorizes the transfer of funds budgeted in the General Fund to the Data and
Communications Fund to support operation of the 2008 Management Information Services (MIS)
Program.
One change in the City's operation business model that is being implemented in 2008 includes
moving all of the City's central information technology functions out of the General Fund to an
existing internal service fund—the Data and Communications Fund.
BACKGROUND
During the 2008—2009 budget process there were discussions about consolidating the Management
Information Services budget into one fund. Currently, IT operations are managed out of both the
General Fund and the Communications Internal Service Fund. Consolidating IT operations into a
single internal service fund will provide greater transparency into IT operations and better support
the MIS department in tailoring service levels to different internal and external agencies. This
business model is recognized as a best practice.
March 4, 2008 -2- Item No. 15
In order to have adequate time to address the details of setting up MIS services as an internal service
fund with charges to other City departments Budget, Finance and MIS staff agreed that it would
better balance the workload to appropriate the 2008 MIS budget in the existing MIS General Fund
accounts, and then transfer the appropriations to the Data and Communications Fund early in the
new year. All future MIS budgets will be appropriated directly into the Data and Communications
Fund.
ORDINANCE NO. 025, 2008
OF THE COUNCIL OF THE CITY OF FORT COLLINS
AUTHORIZING THE TRANSFER OF EXISTING MANAGEMENT INFORMATION
SERVICES APPROPRIATIONS FROM THE GENERAL FUND TO THE DATA AND
COMMUNICATIONS FUND
WHEREAS,Management Information Services("MIS")has appropriations budgeted in the
General Fund and in the Communications Fund; and
WHEREAS, the Communications Fund is an Internal Service Fund which accounts for
Management Information Services budgets related to the telephone infrastructure and services;and
WHEREAS,the computer equipment and systems,and network infrastructure and services
of Management Information Services have been accounted for in the General Fund; and
WHEREAS,technology has changed and there is no longer a clear distinction between the
data network infrastructure and telephone infrastructure; and
WHEREAS, Section 8-57 of the Code of the City of Fort Collins authorizes the creation of
Internal Service funds to account for the financing of goods or services provided by one service area,
department or agency to other service areas, departments or agencies of the City, or other
governmental units, on a cost reimbursement basis; and
WHEREAS,consolidating Management Information Services into a single Internal Service
fund, the Data and Communications Fund, will provide greater transparency into Information
Technology operations and better support MIS in tailoring service levels to City departments and
external agencies; and
WHEREAS, this business model is recognized as an industry best practice; and
WHEREAS, the MIS appropriations in the General Fund are funded by MIS charges to
departments ($1,812,364), other revenue ($508,449), and the General Fund($3,996,885); and
WHEREAS,the revenue received by MIS in the General Fund will be transferred to the Data
and Communications Fund with the related appropriations; and
WHEREAS, the MIS appropriations funded by the General Fund will be transferred to the
Data and Communications Fund and funded by a transfer from the General Fund; and
WHEREAS,all MIS related fixed assets,which are estimated at a net value of$6.4 million,
will also be transferred to the Data and Communications Funds; and
WHEREAS,transferring funds from the General Fund to the Data and Communications Fund
will have no financial impact on the City; and
WHEREAS,Article V, Section 10,of the Charter authorizes the City Council to transfer by
ordinance any unexpended and unencumbered appropriated amount or portion thereof from one fund
to another fund, provided that the purpose for which the transferred funds are to be expended
remains unchanged.
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT
COLLINS that:
Section 1. The unexpended appropriated amount of TWO MILLION THREE HUNDRED
TWENTY THOUSAND EIGHT HUNDRED THIRTEEN DOLLARS($2,320,813),funded by MIS
revenues is hereby authorized for transfer from the General Fund to the Data and Communications
Fund and appropriated therein.
Section 2. There is hereby appropriated from a transfer from the General Fund to the Data
and Communications Fund the sum of THREE MILLION NINE HUNDRED NINETY SIX
THOUSAND EIGHT HUNDRED EIGHTY-FIVE DOLLARS ($3,996,885)for expenditure in the
Data and Communications Fund for Management Information Services.
Introduced, considered favorably on first reading, and ordered published this 4th day of
March, A.D. 2008, and to be presented for final passage on the 18th day of March, A.D. 2008.
Mayor
ATTEST:
City Clerk
Passed and adopted on final reading on the 18th day of March, A.D. 2008.
Mayor
ATTEST:
City Clerk