Commissioners question $11.3M technology budget and planned $2.2M data‑center build‑out

Gainesville staff presented a newly authorized technology department and outlined the financial implications of bringing key IT services in‑house.

Allison Teslia said the FY27 estimate for technology across funds is about $11,290,000 as the city establishes the department and transitions applications and infrastructure. City manager Mr. Banninger told commissioners the city expects to present a budget amendment for a one‑time capital build‑out of the technology space (including a data center) and said, "We're estimating that is it's around $2,200,000," to be allocated from excess fund balance.

Commissioners asked how much the city will reduce payments to GRU and when savings will materialize. Staff said the GRU service level agreement payment is expected to decline from about $5.9 million to $3.7 million this year as applications and services transfer, but that transition costs mean the city will likely pay both sets of expenses during the buildout and early transition years before realizing net savings.

"We do expect it to be a multiyear... to be complete in '27," a staff member said, describing a phased transition; commissioners asked for clearer year‑by‑year net‑cost projections and for a specific plan that shows when SLA payments will fall relative to the city's new operating costs.

The manager indicated the capital cost will be brought forward on a future budget amendment and proposed using excess fund balance rather than recurring revenue to fund the build‑out. Staff said they will return with additional cost estimates and timing to allow the commission to evaluate trade‑offs between near‑term transition costs and longer‑term operating savings.