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Consideration of request by Finance Director for approval of three-year contract with DebtBook for hosted debt management software for the Finance Department
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Submitted by:
John Ruggini
Department:
Finance
A. Issue
The Finance Department transitioned to DebtBook, an online software program for debt management in 2023 for an original three-year term which expires in February 2026. The Department would like to renew the contract early in order to take advantage of a new module.
B. Background/Options
Up until February 2023 the Finance Department was managing over $100 million in outstanding debt using multiple spreadsheets maintained by multiple personnel. Maintaining and reconciling these spreadsheets was inefficient and the chances for a mistake with serious consequences higher than acceptable.
The Finance Department transitioned to DebtBook, an online software program for debt management in 2023 for an original three-year term which expires in February 2026. The product has exceeded expectations. It has streamlined reporting, bond payments and accounting. Customer service has been excellent and the company continues to grow, now serving over 2100 public sector clients. They also continue to invest in the product and now offer the ability to include estimated future debt issuances
The Department would like to add the new “Sizing” module and also extend the contract with DebtBook for an additional two years. Adding this new module will allow us to fully eliminate our “Master Debt” spreadsheet and further streamline our debt management. The City currently pays $5,000 annually. However, this was an introductory price intended for us to try the product with a low commitment. DebtBook would maintain the $5,000 for the Debt Management product for 2025 as per our existing contract, but gradually raise the price. In addition, sizing is added.
C. Strategic Plan (Area of Focus)
Economic Development & Financial Resilience; Infrastructure
D. Fiscal Impact
The cost of DebtBook is spread across all funds with outstanding debt including the utilities and tax increment districts. The 2025 cost would be $10,000 rising to $13,500 in 2028. The 2025 budget includes $5,000. The additional $5,000 can be absorbed.
E. Recommendation
I recommend approval of the amended contract with DebtBook through February 2028