Item Report

City of Tolleson — City Council (2025-09-23)

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Item Number: H.3. 
 
 
CITY COUNCIL REPORT 
 
SUBJECT: 
Fourth Amendment to Tyler Technologies Agreement 
MEETING DATE: 
September 23, 2025 
 
TO: 
Mayor and Council 
FROM: 
Kevin Artz, Chief Financial Officer 
REVIEWED: 
Reyes Medrano Jr., City Manager 
 
PURPOSE: 
The Finance Department is requesting Council approval of the fourth amendment to the Agreement with Tyler 
Technologies for software. 
 
BACKGROUND: 
On April 26, 2022, Council approved a software agreement with Tyler Technologies, to provide financial and 
utility billing software.  The contract provided for an implementation cost of $582,033 and annual fees of 
$84,757 for the first year.   
 
On August 27, 2024, Council approved the First Amendment to the software agreement to add the building 
permit, licensing and business management suite.  The amendment provided for annual fees of $42,592 for the 
first year.   
On May 20, 2025, staff approved the Second Amendment to the software agreement to delete the project and 
grant accounting module as the City was not going to use the module. 
 
On August 5, 2025, staff approved the Third Amendment to the software agreement to establish the fees for 
credit card usage with the new cashiering module.  There was no change in the cost to the City. 
  
 
DISCUSSION: 
The Fourth Amendment to the software agreement establishes the annual subscription fee for the finance 
utility billing, permitting and licensing modules.  For the first year of the agreement, the subscription fee is 
$143,257.05.  The agreement provides for three one-year renewals through June 30, 2029.  The agreement also 
provides that fees shall not increase by more than 5% of the previous year's fee. 
 
BUDGET IMPACT: 
The subscription fees for the software have been included in the FY 2026 budget. 
 
RECOMMENDATION: 
Staff recommends that the Mayor and Council approve the Fourth Amendment to the Agreement with Tyler 
Technologies for software subscription fees in an annual amount not to exceed $150,000 in the first year with 
three one-year real terms, limited to a 5% escalation factor.

ATTACHMENTS: 
1. 
09 23 25 DS and FI - Fourth Amendment to Agreement - Tyler Technologies, Inc.