Houston Information Technology ServicesFY2018 Proposed Budget Presentation

May 15, 2017

Organizational Chart

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FY2018 Department Initiatives

Revenues By Funds

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Variance

FY16 FY17 FY17 FY18 FY18 Prop/ %

Actual Budget Estimate Proposed FY17 Est Change

General Fund 1,015,254$ 1,681,344$ 1,681,344$ 1,868,256$ 186,912$ 11.1%

Revolving Fund 39,145,613$ 44,340,973$ 44,235,154$ 53,163,711$ 8,928,557$ 20.2%

Total 40,160,867$ 46,022,317$ 45,916,498$ 55,031,967$ 9,115,469$ 19.9%

Fund

FY2018 - Revenues Highlights

• General fund revenue increase of $186,912

– Third and final phase of planned rate increase impacting a subset of user agencies (approximately $40,000)

– Increase in the number of radios based mostly on adding new agencies such as HISD police (approximately $118,112)

– Began collecting tower space lease revenue from Harris County for public safety communications equipment (approximately $28,800)

• Revolving fund revenue increase of $8.9M

– Revenues to match expenditure budget

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Expenditures By Funds

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Variance

FY16 FY17 FY17 FY18 FY18 Prop/ %

Actual Budget Estimate Proposed FY17 Budget Change

General Fund 22,273,985$ 23,450,391$ 22,575,709$ 17,067,639$ (6,382,752)$ (27.2%)

Revolving Fund 39,145,613$ 44,340,973$ 44,235,154$ 53,163,711$ 8,822,738$ 19.9%

Total 61,419,598$ 67,791,364$ 66,810,863$ 70,231,350$ 2,439,986$ 3.6%

Fund

• People resources supporting Municipal Court Support, Enterprise Geographical Information Services (EGIS), Enterprise Resource Planning (ERP), and Project Management Office were previously separated in General Fund while software & hardware expenses for same services were in Central Services Revolving fund. In FY18 we combined all expenses for these services into Central Revolving Fund to reflect more accurate and transparent enterprise service costs.

• Additional increases in revolving fund are directly related to contractually mandated increases.

FY2018 Budget Expenditures Net Change

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FY2017 Current Budget Notes

Operating Budget 21,840,332$

Restricted Budget 1,610,059$

FY2017 Current Budget 23,450,391$

Operating Budget Adjustments

Budget reduction initiatives (6,703,540)

Personnel budget utilization 268,172

Subtotal Operating Budget Adjustments (6,435,368)$

% Change from FY17 Operating Budget (29.5%)

Contractual or Mandated Adjustments:

Pension Allowance (474,034)$

Health Benefits 33,204

Hope Allowance 139,511

Contract Escalation 44,118 1

Rental Increases -

Electricity 15,333

Natural Gas 209

Other Restricted Accounts 294,275

Subtotal Contractual/Mandated Increases 52,616$

FY2018 Proposed Budget

Operating and Contractual Adjustments (6,382,752)$

FY2018 Proposed Budget 17,067,639$

% Change from FY17 Current Budget (27.2%)

Notes:

1 Escalation of 3% for Tower lease contracts

FY2018 General Fund Budget Expenditures

Net Change to FY2017 Current Budget

Explanation of FY2018 Incremental Increase/(Decrease)

FY2018 - Expenditures Highlights

• FY2018 Budget provides funding of health benefits, pension contribution and municipal employees contractual pay increases.

• To properly align resources to reflect a more accurate service cost, the following services were transferred to the Central Services Revolving fund in FY2018: Project Management Office, Municipal Court Support, Enterprise Geographical Information Services (EGIS) and Enterprise Resource Planning (ERP)

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Reduction Initiative

Current General

Fund Impact

FY2018

Citywide General

Fund Impact

FY2018 Other

Fund Impact*

Courts Support 1,100,502 1,100,502 -

Project Management Office 1,356,205 1,139,212 216,993

ERP Support 3,712,679 1,893,466 1,819,213

EGIS Support 259,788 140,286 119,502

HFD/Other Dept Support 274,366 274,366 -

Total 6,703,540 4,547,832 2,155,708

* Enterprise and Special Revenue Funds

**$2,155,708 reduction equates to 9.2% net HITS General Fund reduction

Functional Org Chart

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Fund Division Name FY2018 FTEs FY2018 Budget

General Fund HITS - Applications Group 14.5 1,629,280

HITS - Director's Office Group 12.5 3,847,311

HITS - Infrastructure Group 51.8 6,108,035

HITS - Public Safety (Radio) 31.4 5,483,013

General Fund Total 110.2 17,067,639

Revolving Fund HITS - Applications 37 12,589,460

HITS - Client Solutions 11 1,689,819

HITS - Director's Office Group 9 3,979,114

HITS - Infrastructure Group 6 28,222,706

HITS - Project Group 16 2,195,939

HITS - Public Safety (HEC) 20.7 4,486,673

Revolving Fund Total 99.7 53,163,711

Grand Total 209.9 70,231,350

Questions

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Appendix

• Contents, to include:

– Department demographic breakdown (gender & ethnicity)

– Optional - Relevant operating information, examples:

o Customer satisfaction surveys

o Productivity or throughput trends impacted by recent initiatives

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HITS Employee Demographics

Department FY2017 Accomplishment Highlights

• IMPROVED RELIABILITY:

– Office 365 deployment improved reliability & capacity of citywide email services for

over 16,000 mailboxes

– Replaced aging or non-supported infrastructure (network, servers, PC

replacements) and applications (MCD/Courtview; DON/FORMS)

– Negotiated data center electrical infrastructure reconfiguration (at provider’s

expense) to comply with Tier III data center standard. This remediates the cause

of two major public safety system outages in FY16/17. Contract amendment in

progress to enhance Service Level Agreement (SLA) to include financial penalties

for loss of power.

– Implemented SAP Position Budget Control; enhanced reporting to comply with

Asia/Pacific Islander & Veteran’s reporting requirements

– Completed major upgrade and data cleanup of the Fleet Management Division

(FMD) M5/Assetworks system

– Anticipate completion of IT security 4-year master plan; multiple security

procedures approved

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Department FY2017 Accomplishment Highlights (continued)

• INCREASED TRANSPARENCY & INTER-DEPARTMENT COORDINATION:

– Consolidated separate contracts into enterprise (citywide) agreements to achieve

volume pricing, standardization, and data sharing (Microsoft, Infor, Hyland

OnBase, ESRI GIS)

– Initiated monthly publication of upcoming IT-related Requests for Council Action

(citywide)

– Solicitations in progress for eSignature, Cisco

– Anticipate completion of IT expense management and chargeback transparency

dashboards

– Anticipate completion of Service Now Client Portal (IT service desk)

– Anticipate completion of AR Datamart for accounts receivable

• SUPER BOWL: Completed extensive planning and operational support activities for

radio communications event support and cyber security incident response readiness

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FY 2018 Performance Measures

Customer Measures Priorities FY16Actual

FY17Budget

FY17Estimates

FY18Estimates

311 Citizen Service CenterAvailability during operational hrs

N/A N/A N/A 100%

Citywide Radio System Availability Management

99.9% 99.9% 99.9% 99.9%

Business Process Measures Priorities FY16Actual

FY17Budget

FY17Estimates

FY18Estimates

Expenditure Adopted Budget vs Actual Utilization

92% 98% 97% 98%

Revenue Adopted Budget vs Actual Utilization

118% 100% 100% 100%

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