Financial Services 2014-2023 Capital Plan focuses on system and business process improvements, including implementation of the Cross Application Time Sheet (CATS) project replacing the existing outdated customized module.

Budget Notes

Financial Services’ 10-Year Preliminary Capital Plan balances the need to maintain current technology for enterprise-wide financial processes in a state of good repair (SOGR) with enhancing the City’s capability to further provide real-time financial and management information for program and corporate decision-making through business intelligence, analytics and reporting.

The 10-Year Capital Plan totaling $51.020 million allocates funding for capital investments currently identified to maintain the existing technology infrastructure in a state of good repair and includes new funding of $8.851 million for new and enhancements to existing information systems to optimize the use of the City’s technology as an enabler for business transformation and associated benefits.

The 10-Year Preliminary Capital Plan will increase future year Operating Budgets by a total of $2.948 million net over the 2018 – 2027 period, primarily for sustainment, maintenance and support related to the Supply Chain Management Transformation (SCMT) and Payment Card Industry (PCI) Compliance projects.

Where does the money go?

The 2018 – 2027 Preliminary Capital Budget and Plan totalling $51.020 million provides funding of:

  • $37.474 million for the state of good repair of Financial Service’s information technology systems, including upgrading and replacing outdated systems.
  • $4.607 million for Legislated initiatives including $3.432 million for Payment Card Industry (PCI) Compliance.
  • $8.851 million for Service Improvement initiatives to introduce data analytics, predictive modelling and reporting capabilities and supply chain management processes.

Where does the money come from?

The 10-Year Preliminary Capital Plan requires:

  • Debt funding of $37.827 million (74.1%) for transformative City-wide capital projects such as Supply Chain Management (SCMT) and the Integrated Asset Planning and Management (IAPM) projects and to address aging data systems.
  • Additional capital financing of $10.732 million (21.0%) to be provided from reserve/reserve funds, primarily the Capital Financing Reserve.
  • Funding from Development Charges ($1.263 million or 2.5%) as well as Other Revenue ($1.198 million or 2.3%) are utilized to fund such projects as the Development Charges Background Study and the Utility Billing System.

State of Good Repair Backlog

Financial Services does not have a backlog of State of Good Repair for its inventory of system applications. Funding included in the 10-Year Capital Plan addresses all state of good repair projects based on planned lifecycle without backlogs and ensures continuity of the City’s technology.

Key Issues & Priority Actions

  • Focus on business process transformation and system modernization to enhance program and corporate decision-making by providing real-time financial and management information, implementing best practices in key areas such as business analytics, predictive modelling, asset management, procurement, and providing self-service options for vendors, clients and employees.
    • The 10-Year Preliminary Capital Plan includes funding of $8.211 million for state of good repair (SOGR) upgrades in 2018 to ensure sustainability of financial systems in the Payroll & Benefits ($0.909 million), Revenue Services ($5.238 million) and Financial Planning ($2.064 million) business areas.
    • Funding of $8.851 million is provided in 2018 to leverage technology to transform and automate business processes and reduce manual effort allowing for greater efficiencies.
  • High demand for both IT and other divisional internal staff resources – Competing demands for limited IT and other internal staff resources combined with efforts to consolidate initiatives across various Programs has impacted the ability to meet projected time lines.
    • For 2017, Financial Services expects an increase in spending rates compared to the 5-year historical average despite the ongoing challenges.
    • Financial Services will continue to actively monitor the resource demands for its projects and work closely with I&T to mitigate delays where possible.

2018 Capital Budget Highlights

The 2018 Preliminary Capital Budget for Financial Services of $20.582 million, excluding carry forward funding, will:

  • Continue the Supply Chain Management Transformation ($5.641 million);
  • Continue the Tax & Utility Modernization projects ($4.468 million);
  • Continue the implementation of the PCI Compliance project ($3.432 million);
  • Continue Enterprise Performance Management (EPM) Phase 2 of FPARS; and
  • Continue the Finance Accounting Systems Information (FAST) project ($0.500 million) for scoping and identification of best practice opportunities for transforming the finance processes and reporting capabilities.