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Troy council approves $588,000 implementation of Tyler financial system, flags future annual costs

Troy City Council — Special Finance Committee · December 6, 2024
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Summary

The council voted to authorize purchase and multi-module implementation of Tyler Technologies financial software; administration said a $588,000 one-time implementation will be covered with ARPA funds but ongoing annual fees of roughly $300,000 will need future budgeting and implementation may take 18–24 months.

The Troy City Council on July 6 adopted Resolution 153 to purchase and implement Tyler Technologies’ financial-management software and related modules, with council members and staff citing replacement of the city’s aging KVS system and longer-term staff efficiencies.

Administration representatives told council the one-time implementation cost is $588,000 and described additional recurring annual fees that they said are “roughly” in the $300,000 range; implementation was characterized as an 18–24 month phased process. “The one-time cost of 588,000” was cited by administration during discussion, and council members repeatedly asked whether those ongoing charges were accounted for in future budgets.

Council Member McLaren asked whether the current controller should weigh in before the contract is finalized and whether the ongoing annual fee had been budgeted. Deputy mayor/administration staff noted the one‑time implementation would be covered by existing ARPA funds allocated for this purpose and that the annual subscription payments could be phased; the administration also said vendor training and implementation services by Tyler were included in the contract.

Supporters emphasized operational benefits beyond accounting, saying the system will improve dashboards, online bill-pay, integrations with payroll (Kronos) and other department workflows, and cloud redundancy compared with on‑premises hosting. “This will set up a dashboard and a queue for so many different things,” an administration official said when describing resident-facing and back-office improvements.

Opponents and cautious council members stressed the higher ongoing costs compared with the city’s current annual KVS maintenance (discussed at roughly $80,000) and asked for clarity about how the annual charges will be covered once ARPA funds are exhausted. The administration responded that ARPA covers implementation, that the city could phase payments, and that implementation timelines and vendor support were designed to limit unforeseen additional charges.

The council voted in favor of Resolution 153. The administration said next steps include contract execution under the Sourcewell consortium contract, phased implementation with vendor staff, and staff training. The council did not set a separate public hearing; final budget planning for annual operating costs was described as a future action for the comptroller’s office and the 2026/2027 budgeting cycle.

What happens next: Contract execution and the vendor-led implementation process; council members asked that the comptroller’s office confirm long‑term budget impacts before the system is fully operational.