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Special City Council Strategic Planning Meeting <br />Saturday, February 7, 2009 <br />Page 12 <br />one position unfilled for almost a year to attempt to maximize savings. However, Mr. <br />Miller asked that the division retain some flexibility in possibly bringing that position <br />back, in order to keep service levels sufficient to keep surplus dollars coming in to the <br />City. <br />Information Technology (IT) Division <br />Mr. Miller advised that the City's IT division has been able to maintain its successful <br />business model to offset support staff costs for the City by partnering and providing IT <br />services to 18 other communities and agencies. Mr. Miller noted that this allowed the <br />City to take fixed costs and spread them over a larger service area, reducing operating <br />costs, while allowing for $800,000 in annual revenue to the City. Mr. Miller advised that <br />discussions were ongoing with several other cities who had verbally agreed to commit, <br />with details still being negotiated before coming to the City Council for formal action. <br />Mr. Miller anticipated additional interest from cities as they were forced to reduce and <br />outsource IT services. <br />Mr. Miller addressed challenges to the division, in being able to keep up with IT <br />purchases to meet the demand of its clients, and ability to replace network services on a <br />reasonable replacement schedule. Mr. Miller noted that the department had currently <br />fallen behind; and had recognized the need for better long-term sustainable funding; with <br />staff constantly revisiting the business model and making improvements, while <br />recognizing ongoing operational challenges. <br />Finance/Accounting Division <br />Mr. Miller noted that most of what was done by this division was mandated or proscribed <br />by federal/state mandates and City Code. Mr. Miller noted that priorities change with the <br />loss of state aid or priority changes dictated by the City Council or legislative mandates. <br />Anticipated MVHC-Specific Reduction = $20,000 <br />Mr. Miller advised that since the IT and License divisions generate surplus revenue, it <br />didn't make sense to reduce their service levels or functions. <br />Mr. Miller further advised that, within the Finance/Accounting division, there were 15 <br />distinct functions, with half fee-based or revenue-generating and not a viable option for <br />reduced staffing based on their revenue generation functions; leaving only 6-7 primary <br />core functions in the Finance area to turn to, with virtually all of those regulated by <br />federal/state or City Code and not providing an option for elimination or reduction. <br />Mr. Miller noted that payroll, accounts payable, and annual audit reporting were all <br />functions mandated by state law, limiting any areas to achieve savings. <br />Mr. Miller noted that, due to incredible limitations available, there was only one function <br />that remained discretionary in the department: staffing the front reception desk at City <br />Hall. Mr. Miller noted that this was not a requirement of the department; however, for a <br />portion of the day, his recommendation would be to scale back those hours of operation <br />