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Study session: staff propose dedicated technology funding and governance changes to manage rising SaaS and enterprise costs
Summary
County IT and finance staff proposed centralizing technology funding and creating a two‑track structure (fast‑response cost center for small projects and a dedicated budget for enterprise/SaaS licensing) to tame fragmented spending and recurring vendor escalators.
Arapahoe County information‑technology and finance staff reviewed how the county currently funds hardware, software and large enterprise projects and proposed changes to centralize and stabilize technology funding and governance.
Staff explained the current mix of funding sources: capital expenditure fund (large one‑time implementations), department operating budgets (smaller one‑time purchases or ongoing subscriptions), and central services/fleet for equipment replacement (capitalized assets over the county threshold). Presenters said this fragmented approach creates unpredictability and duplication, and it makes it hard to plan for recurring subscription escalators that many vendors now include.
IT proposed a two‑track approach: (1) create a designated “small projects” cost center in IT with an annual pool to fund smaller mid‑year requests that meet steering‑committee approval; (2) create a dedicated cost center (or a CEF bucket) for major enterprise SaaS subscriptions and recurring licensing increases so escalators are budgeted centrally and predictably. Staff also suggested moving certain enterprise equipment lifecycle costs into a single place so departments do not absorb rising maintenance/lifecycle costs piecemeal. Staff flagged that top subscription increases across the county’s largest vendors are projected in the low single‑digit percentage range in 2026 and that planning is needed to budget those ongoing increases.
Commissioners asked staff to prepare an IT capital/operating plan showing a five‑year schedule of large projects and the recurring costs those projects would create; they also asked staff to outline how the proposed changes would be implemented administratively. Two items were highlighted by multiple commissioners: (a) tighten the rule that departments purchase technology only after IT review and (b) consolidate recurring licensing and support in IT where possible so cataloging, vendor management and cybersecurity checks are consistent.
Ending: Staff will return with a draft five‑year technology plan, proposed cost‑center structure and recommended funding levels so the board can consider where 1A dollars or CIP funding should be allocated for IT modernization.
