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Finance Committee debates unexpected Tyler Technologies invoice and billing timing
Summary
The committee reviewed an invoice from Tyler Technologies reduced to $64,515 after credit, which staff said was billed to the county earlier than expected because of contract language. Members discussed options including installment payments but raised that withholding payment could impede software implementation.
The Finance Director told the committee an invoice from Tyler Technologies for $70,381 had been reduced by a $5,800 credit to $64,515. He said the county had expected to incur implementation conversion costs this fiscal year but anticipated the annual software service fee would begin in fiscal 2027 when the system goes live. Reviewing the contract, he said, showed the annual charge begins this year.
"While we were anticipating conversion costs this fiscal year, we were not anticipating the initial annual software cost, which is what this is until fiscal year 20 27," the Finance Director said, noting the county had negotiated pricing and obtained a $5,800 credit but that the contract language requires the annual fee to begin in the current contract period. He said the county locked pricing for five years.
Committee members pressed why the billing schedule differed from expectations. The Finance Director described the discrepancy as a miscommunication between the county and the vendor; he said similar billing practice is industry standard for that vendor and that the county may have a budget cushion in professional services to absorb the charge this year. The Tyler representative had suggested possible installment payments, but the director said installments would still likely fall in the same fiscal year.
Several committee members said the county must pay to avoid hampering implementation and to gain full access to the product. "Otherwise, we're handcuffing ourselves," one committee member said, arguing the county could not realistically postpone payment and still use the software. The committee did not record a formal vote on whether to pay immediately or seek alternate timing; the Finance Director said he would seek the committee's guidance on how to proceed.
The committee will monitor professional-services budget availability and advise the Finance Director on payment timing; if the county pays the invoice this fiscal year it will reduce budget flexibility in the professional-services account.
