Anchorage seeks $1.4M to replace aging IT network and server hardware

Anchorage's aging server and network hardware and outdated software create security vulnerabilities and application downtime risks. Mayor Suzanne LaFrance has introduced a resolution for the June 23 Assembly meeting to borrow up to $1.4 million for a hardware and software replacement program, with repayment over seven years drawn from the IT Department's operating budget.

The memorandum, submitted by Mayor LaFrance, trims $40,000 from the $1.44 million IT capital program the Assembly authorized in November 2025. It drops a desktop life cycle program and retains the Infrastructure Life Cycle Replacement Annual Program at a revised not-to-exceed amount of $1.4 million. The administration states that aging hardware and outdated software can introduce vulnerabilities that are easily exploited, putting critical municipal data at risk, and that the replacement program will reduce application downtime and support continuous municipal services. Municipal Manager Becky Windt Pearson concurred on the proposal.

The project covers procurement of new server and network hardware and software to replace outdated equipment in the city's data environment, as well as migration of existing municipal applications to the newly acquired hardware. The administration notes that network and server hardware is refreshed every seven years as part of a regular maintenance schedule to ensure optimal performance and a sound security posture. The anticipated lifespan of the new hardware is seven years, in line with that refresh cycle. Funding would flow from the IT Operating Fund to the IT Capital Improvement Projects Fund, with the full $1.4 million designated for computer hardware over $5,000.

The financing runs through a Master Lease Purchase Agreement the Assembly first authorized in 2017, under which the city subsequently entered into a $100 million agreement. The city has drawn on that program 43 times across various departments. As of March 31, 2026, the outstanding balance across all schedules stood at approximately $11.8 million. The CFO retains discretion to use the existing 2017 agreement or a new agreement entered into through a request-for-proposals process. The lease schedule term will be seven years or less, at a fixed tax-exempt interest rate for the life of the schedule.