Staff recommends that City Council review the proposed Fiscal Year 2028 Technology Replacement Plan (TRP) and provide feedback or recommendations for any desired changes before the plan proceeds through the City's annual budget process.

The City of Billings Technology Replacement Plan (TRP) provides a systematic, multi-year approach to replacing aging technology equipment across City departments. The program supports operational continuity, cybersecurity, fiscal responsibility, and the timely replacement of equipment while avoiding unnecessary or premature expenditures.

The proposed FY2028 TRP identifies approximately $1,104,480 in planned technology replacements, consisting of $474,000 in capital expenditures and $630,480 in operations and maintenance (O&M) expenditures. The plan encompasses desktop computers, laptops, tablets, servers, network infrastructure, and specialized departmental technology.

The FY2028 plan was developed through coordination between the Information Technology Department and participating City departments. Equipment replacement schedules consider useful life, operational requirements, security risks, equipment condition, and departmental needs. Where appropriate, departments may extend the useful life of existing equipment rather than replace it solely because it has reached a scheduled replacement year.

Technology hardware markets continue to experience considerable pricing volatility. The proposed replacement costs reflect current planning estimates, although actual purchase prices may increase before FY2028. Staff will continue evaluating purchasing priorities, opportunities to defer noncritical replacements, and available funding as part of the annual budget process.

The City of Billings established the Technology Replacement Program to assist departments in anticipating technology replacement needs and associated financial requirements. The program uses a multi-year planning approach to distribute replacement costs over time and reduce unexpected expenditures.

Technology equipment is tracked through the City's Asset Inventory system, which records existing assets, anticipated replacement years, and estimated replacement costs. The equipment models listed in the replacement list represent the City's existing assets scheduled for replacement, not the specific equipment to be purchased. Replacement equipment will be selected in accordance with current technology standards, including Dell Pro desktops, laptops, and workstations, with configurations tailored to departmental operational requirements.

The Technology Replacement Committee, consisting of representatives from participating departments, reviews replacement needs annually. The committee considers established equipment lifecycle guidelines, departmental operational needs, and whether equipment should be replaced as scheduled or retained for additional service.

The FY2028 plan includes several significant capital replacement projects, including Airport communications and security equipment, Public Works water and wastewater infrastructure, laboratory equipment, and Library technology.

The program supports the City's established technology replacement guidelines and ongoing efforts to maintain secure, reliable, and cost-effective technology services. It also provides projected replacement expenditures for future fiscal years to support long-range financial planning.

The total technology investment for FY28 is $1,104,480. Individual departments fund Technology Replacement Plan items and will be included as part of their annual budget presented to City Council in the FY28 budget process. 

City Council may provide recommendations to modify the proposed FY2028 Technology Replacement Plan, including adjustments to replacement priorities, timing, or anticipated expenditures.

Council may also recommend deferring specific replacement projects for further evaluation during the annual budget process.

No formal Council action is required at this work session.