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It is uncertain as to whether the City Council has ever taken a formal action on where to earmark tower <br />rental fees. However, the actual use of those revenues has been regularly communicated through the annual <br />budget process as well as other public discussions. That being said, it is conceivable that a previous policy <br />decision was made to earmark these funds towards information technology to ensure that all City functions <br />benefit from these rental fees. <br />Tower rental (lease) monies are the City's primary funding source for the provision of email, internet <br />access, computers, printers, software, network servers and switches, security systems, data backup drives, <br />and more. It also pays for approximately 2.5 FTE Support Staf£ The following table provides a <br />breakdown of the City's 2010 information technology costs and their applicable funding source. <br />Sources of Funds <br />Wireless antenna lease payments <br />Contributions from contract agencies <br />Transfer from the License Center <br />Transfer from the Water Department <br />Propertytaxes <br />Uses of Funds <br />Personal Services <br />Supplies & Materials <br />Other Services & Charges <br />Capital Outlay <br />Contract <br />Roseville A e� ncies Total <br />$ 296,000 $ - $ 296,000 <br />- 669,000 669,000 <br />50,000 - 50,000 <br />25,000 - 25,000 <br />50,000 - 50,000 <br />Total $ 421,000 $ 669,000 $ 1,090,000 <br />$ 185,000 $ 613,900 $ 798,900 <br />12,300 - 12,300 <br />122,500 - 122,500 <br />132,000 - 132,000 <br />Total $ 451,800 $ 613,900 $ 1,065,700 <br />As is shown in the table, the revenues derived from wireless lease agreements are used to pay for <br />Roseville's IT supplies, hardware, software, etc. The revenues derived from partnerships with other <br />agencies are used almost exclusively to provide IT Support to those agencies. <br />These partnerships help the City spread its fixed costs over a larger service area. Absent these partnerships, <br />the City's costs for network servers, switches, etc, would be much larger. These partnerships also allow the <br />City to maintain a larger complement of IT Staff than if we were to go it alone. And although most of the <br />added Staff spends the majority of their time servicing other agencies, it does afford the City the flexibility <br />to direct 8 full-time Staff to respond to emergencies, high-priority proj ects, or system-wide troubleshooting <br />needs. <br />City Staff will be available to answer any Council inquiries. <br />POLICY �BJECTIVE <br />Not applicable. <br />FINANCIAL IMPACTS <br />For 2010, tower rental fees are expected to total approximately $290,000. These monies are used to support <br />citywide purchases of information technology hardware and software, as well as IT Support Staff. <br />Page 2 of 3 <br />