City of Toronto Recommended 10 YR Capital Budget for Information Technology
City of Toronto 10 YR IT Capital Plan
According to the plan, “The 2010 Recommended Capital Budget is funded from debt in the amount of $13.698 million…”
81% of the budget or $38M will go towards replacement of equipment and majority of this equipment likely has a life-span of 3 years, this usually coincides with the warranty period.
Only 19% of the available budget is going towards service improvement. The plan outlines an increase in operating cost with the need to hire additional staff but there is no mention of cost savings or efficiencies.
The above graph indicates the Capital plan is not normalized and heavily front-loaded. There is no way we will only need 1% of the current budget in 2019. This practice of borrowing from future years has to change otherwise we will be seeing shortfall in IT and other areas. IT will definitely have a major shortfall in 2015. Perhaps we should apply for a new credit card ?
- Image via Wikipedia
