CITY COUNCIL AGENDA ITEM
ACTION REQUESTED:
title
Approve the award of Cooperative Procurement 26-222, Debtbook Financial Software, to Fifth Asset Inc. for an amount not to exceed $137,326.03 and for a two-year term
body
DEPARTMENT: Finance Department
SUBMITTED BY: Traci Marrocco, Interim Director of Finance
BOARD/COMMISSION REVIEW:
N/A
BACKGROUND:
The Finance Department has utilized Debtbook Financial Software since 2023 to assist with implementing Governmental Accounting Standards Board (GASB) requirements. The software has proven to be a valuable tool for organizing and tracking the City’s leases and software subscriptions and generating complex accounting entries necessary to comply with the new standards.
This award is requested to continue to use Debtbook software for an additional two years and to add two software components, Investment & Cash Management.
DISCUSSION:
The proposed purchase adds two more components, Investment and Cash Management. The addition of the Cash Management software will assist Finance by tracking upcoming cash flow and adjust as needed for accurate projections. The software will recognize debt payments alongside cash forecasts for full financial clarity. The Cash Management software will also monitor all connected bank accounts in real time for unusual activity, quickly flag unauthorized transactions, and reduce fraud risk. The Finance Department does not currently have a cash flow monitoring system.
Debtbook’s Investment software will consolidate investment holdings into one system, track maturities, yields, and compliance with policies, and assist with creating reports for the Financial Advisory Board and City Council. Following the conclusion of the City’s contract with Marquette Advisors, Finance developed an internal Cash and Investment Report based in Microsoft Excel. Debtbook’s software would provide a more robust reporting solution than the current Cash and Investment Report.
Without the software, staff would continue using Microsoft Excel for the Cash and Investment Report. Since Finance does not currently have a cash flow model, a cash management system would need to be developed and maintained internally using Excel and potentially Power BI. The accounting team has other priorities relating to the City’s audit that need to be implemented before a cash management system can be developed. Fraud is currently monitored through established internal controls and Wintrust Bank; however, additional automated monitoring capabilities could provide another layer of protection.
Staff recommends purchasing the two-year subscription using the Omnia Partners cooperative contract #159808. Staff was able to negotiate a better discount on the cooperative pricing by agreeing to a two-year subscription rather than a one-year subscription. As part of the discount, implementation of the software would begin in September, which Debtbook estimates would take three months. This is ideal timing for staff since the City’s audit will begin in mid-January.
The term of this award is two years from September 13, 2026, to March 12, 2028.
FISCAL IMPACT:
Debtbook accounting software is expensed to the Software and Hardware Maintenance account listed below. The requested award of $137,326 includes $19,726 in pro-rated, upfront costs for implementation to begin in 2026. The first year of this two-year agreement is $58,800. The proposed 2027 budget accounts for the requested award and is a net increase of $40,000 compared to the 2026 budget. Year two of the agreement will be budgeted accordingly in 2028.
|
Account Number |
Fund Description |
Total Budget Amount |
|
15101100-531312 |
General Fund |
$137,326 |