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Montgomery County debates $750,000 estimate to replace aging AS/400 financial system; officials urge caution and parallel modernization track
Summary
County staff presented a vendor-driven plan to replace the decades-old AS/400 system with an off-the-shelf product (example vendor Tyler), estimating an upfront cost of about $750,000 and annual maintenance around $325,000; members requested vendor demos, quotes and a parallel option to modernize the existing system's interface.
County officials devoted an extended portion of the budget and finance committee meeting to whether to replace the county's legacy AS/400 financial system or modernize it. Staff presented preliminary cost and timeline estimates and proposed pursuing parallel tracks: vendor demonstrations for a full replacement and a quote to create a modern, point-and-click interface for the existing system.
Sean, who led the presentation, said the upfront cost for a replacement system with one year of maintenance would be "about $750,000," and that estimated yearly maintenance fees would be about $325,000. He described the AS/400 instance as a "homegrown program" created in the 1980s, supported now by two programmers; committee members expressed concern that retirements among current programmers could create support risks.
Why it matters: the county's financial operations, payroll and personnel modules are tied to the legacy system. Committee members stressed the need for transition support and interoperability with existing HR/payroll platforms; one member asked about bridging the new system to existing time-and-attendance and payroll tools to avoid duplicative entry. The treasurer and IT staff said they would seek vendor references and emphasized phased, careful planning.
Board reaction and next steps: several legislators urged caution and a phased approach rather than an immediate large capital expenditure. The committee asked staff to obtain vendor demonstrations (Tyler Technology was cited as an example used by other counties), to gather quotes to modernize the green-screen interface to a GUI, and to pursue further due diligence. No procurement decision was made; staff will return with additional analysis and cost comparisons.
Representative quote: "The upfront cost of the project with one year maintenance and support would be about $750,000," Sean said, and later added that while the AS/400 system is inexpensive to maintain now, the county faces future maintenance and staffing risks as programmers retire.
The committee agreed to pursue parallel paths — vendor quotes for a full replacement and a modernization quote for the existing AS/400 — and to continue deliberations before any borrowing or capital request is advanced.
