City of Gonzales
FINANCE DEPARTMENT
STAFF REPORT
TO: Honorable Mayor Rios and City Council
DATE: November 7, 2022
FROM: Mike Howard, Finance Director
THROUGH: Carmen Gil, Interim City Manager
SUBJECT: Resolution No. 2022-76 Approving the Purchase of the Tyler Technologies Financial System Upgrade
RECOMMENDATION
It is recommended the city Council adopt Resolution No. 2022-76, A Resolution of the City Council of the City of Gonzales Approving the Purchase of the Tyler Technologies Financial System Upgrade, and Authorizing the Interim City Manager to Execute an Agreement for the System Acquisition and Services in the Amount of $127,874.
BACKGROUND
The City of Gonzales has used the Tyler Technologies financial reporting system called Fund Balance for more than three decades. Tyler Technologies is the leading provider of Financial Reporting System software to governmental entities such as cities, counties and school districts. The Fund Balance product is soon going to be reaching “End of Life”, meaning that it will be discontinued and no longer serviced by Tyler Technologies. This is a normal process in the evolution of software products.
Instead of waiting until the City receives formal notice, staff is recommending the City now replace the current financial reporting system with the newer product called ERP Pro 10 (formerly known as Incode 10) by Tyler Technologies. ERP Pro 10 was selected after reviewing the costs and features of a number of software options. This product is currently used by the City of Soledad, City of Greenfield, and the City of King has just approved to replace their Fund Balance system with ERP Pro 10.
AGENDA
ITEM
6 REVIEW AND ANALYSIS
Fund Balance has served the financial needs of the City for about three decades now, which is a very long lifecycle for a software system. As a result of being a long-term client of Tyler Technologies, the City will be receiving a substantial discount of more than $46,000 of the actual system price.
With the new software suite of products, the City will be adding an electronic Time and Attendance module which will move our current paper system of keeping track of employee time to an automated online system. This will greatly reduce the time to process employee hours all the way through the payroll process. Additionally, employees will have an online “portal” where they will be able to manage items such as changing withholdings, reviewing benefits, as well as having an archive of pay stubs and W-2’s.
The new ERP Pro system will also have an enhanced budgeting module which will allow “budget notes” in the system. This feature will greatly assist department heads and staff to ensure that expenditures are recorded where they were budgeted. Currently, staff keeps a lot of “off system” notes to document where projects and expenditures are budgeted.
The newer ERP Pro 10 financial reporting system has a report writing system that is much more enhanced and powerful than what the current older Fund Balance system has. This will be helpful in extracting data for reporting an analyzing data.
By upgrading the financial system reporting software to the Tyler Technologies ERP Pro, this will move the City into the 21st Century of Financial Reporting Software.
Explain Recommendation and How it Supports the Vision
Gonzales will continue to be a safe, clean, family-friendly community, diverse in its heritage, and committed to working collaboratively to preserve and retain its small-town charm.
Explain: This supports the vision because with good financial data the City staff and City Council will be able to make good sound decisions.
Explain how the Recommendation Directly Implements the Mission The City Council and Staff of the City of Gonzales will realize our Vision by providing the leadership, commitment and resources necessary to provide excellent services that enhance the quality of life of our diverse community. X Yes ___No ___ NA
Explain: With a good financial reporting system and more automated, there is staff who have more time to work on other projects to improve the other services we currently provide.
City services will be delivered in a cost-effective, respectful and friendly manner to ensure the safety and well-being of the residents and the promotion of business, recreational, housing and employment opportunities in an environmentally sustainable manner. ___ Yes ___No X NA Explain: Reporting will be easier and more accessible to department directors and the inclusion of the online employee portal will be of benefit to all.
Strong fiscal reporting allows us to provide appropriate resources for:
• Public Safety X Yes No N/A
• Housing X Yes No N/A
• Recreation X Yes No N/A
• Environment X Yes No N/A
• Education X Yes No N/A
Explain: Please see above.
ALTERNATIVES
The following alternative are provided for Council Consideration.
1. Adopt the Resolution;
2. Modify and adopt the Resolution;
3. Do not adopt the Resolution and direct staff to consider other software options; or
4. Provide staff other direction
BUDGET IMPACT
The funds for the project are currently budgeted in the FY 2022-2023 Budget. The system upgrade has been budgeted to use ARPA Funds, as well as the Enterprise Funds.
CONCLUSION
It is recommended the city Council adopt Resolution No. 2022-76, A Resolution of the City Council of the City of Gonzales Approving the Purchase of the Tyler Technologies Financial System Upgrade, and Authorizing the Interim City Manager to Execute an Agreement for the System Acquisition and Services in the Amount of $127,874.
Attachments:
1. Resolution No. 2022-76