Date: June 16, 2026
To: Mayor and City Council
From: Anissa Leung, Finance Director
Subject: Award a contract to Debt Book for the Management of GASB 87 GASB 96, and Contract Management Recommendation:
Pass a motion to approve Resolution No. 2026-XX awarding DebtBook a three-year contract in the total amount of $43,440 inclusive of a $4,000 one-time implementation fee.
Rationale for Recommendation:
The cloud-based software provided by Fifth Asset, Inc. (dba DebtBook) will assist staff with managing its debt, leases, and subscription-based IT arrangements (SBITAs). The software provides automated reporting to ensure compliance with Governmental Accounting Standards Board (GASB) standards and streamline the city's annual audits. Additionally, DebtBook has a contract management module that assists organizations with collecting and maintaining new, ongoing, and expired agreements.
Background:
When audit season arrives, there is a need in the finance department to help manage debt schedules, lease management, and software subscriptions to comply with Governmental Accounting Standards Board (GASB) standards. Specifically, GASB 87 is a requirement for local and state governments to report leases on the balance sheet to increase transparency and GASB 96 requires local and state governments to recognize “right-to-use” intangible subscription assets and realize the corresponding subscription liability on our financial statements for qualifying IT contracts. Debt Book also has a has a module for contract management. All City departments will be eligible to have access to the software to input contracts for their respective departments to enhance organization and timeliness of renegotiations, if eligible.
Discussion & Analysis:
Debt Book will provide a centralized web-based portal for staff to manage all lease schedules, inclusive of payments for principal and interest, lease/loan maturity, and terms of the agreement. They will also provide corresponding journal entries for staff to post to ensure compliance with state and federal accounting standards. Debt Book will be an instrumental tool for management to track how many users of each subscription exist and assist with understanding the rising costs in software and licensing. The software allows us to input contract terms, associated costs (revenue or expense), and push reminders to the respective departments for termination dates up to 6 months prior. It will also create a cloud-based database for all City users to access when they are searching for contracts.
Alignment with City Council Goal(s):
Goal #1: Expand Economic Development
Goal #6: Strengthen Organizational Capacity
Environmental Impact:
This Agenda Item does not have an environmental impact.
Legal Review:
This Agenda Item has been reviewed by the City Attorney.
Item #04
Fiscal Impact:
For the Fiscal Year 2025-26, there are sufficient funds in 10-115-5165 and 10-116-5225 to expend $16,500 for Year One inclusive of a $4,000 implementation fee. There is an annual 5% uplift for Year Two ($13,140) and Year Three ($13,800).
The cost will be equally divided between the Finance Department (10-115-5165) and the IT Department (10-116-5225).
Attachment(s):
a) Guide to GASB and Contract Management