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<br /> 14669 Fitzgerald Avenue North, Hugo, MN 55038 • (651) 762-6300 • www.ci.hugo.mn.us <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br />TO: Honorable Mayor Tom Weidt and Members of the City Council <br />FROM: Anna Wobse, Finance Director <br />SUBJECT: Enterprise Resource Planning (ERP) Software <br />DATE: For the City Council Meeting of April 20, 2026 <br /> <br /> <br /> <br />DESIRED COUNCIL ACTION <br /> <br />Approve selection of Enterprise Resource Planning (ERP) software. <br /> <br />BACKGROUND <br /> <br />At the September 19, 2025 Midyear Budget Review Workshop, staff informed the City Council that Tyler Technologies <br />had notified the City that support for the current Fund Balance accounting software will reach its end of life effective <br />December 31, 2026. This will end support for all core financial modules currently utilized by the Finance Department, <br />including Payroll, Accounts Payable, General Ledger, and Utility Billing. <br /> <br />Since that time, staff has conducted a comprehensive review of replacement software options. Demonstrations were <br />completed with three vendors: BS&A, GovSense, and Tyler Technologies’ ERP Pro product designed to replace the <br />existing Fund Balance software. These vendors were selected based on recommendations from the City’s finance <br />consultants and their experience serving municipal clients. <br /> <br />All three vendors offer robust ERP solutions with functionality extending beyond Finance to support operations in the <br />Building Department and Planning and Zoning. The Building Department has expressed interest in transitioning from its <br />current Permit Works software, while Planning and Zoning is seeking improved application tracking capabilities. Each <br />proposed system provides integrated solutions to address these needs. While these departments were included in the <br />evaluation process to ensure future compatibility, the current software selection is focused on the Finance Department, <br />with implementation for the other departments to be phased in after the Finance modules have been fully <br />implemented. <br /> <br />Following evaluation, staff eliminated both Tyler Technologies’ ERP Pro and GovSense from further consideration. <br />Tyler’s ERP Pro does not integrate with Laserfiche, a critical document management system that the City intends to <br />retain. Additionally, Tyler Technologies does not offer onsite training, which staff considers an important component to <br />a successful implementation and staff readiness during this transition. GovSense, while offering advanced automation <br />functionality through the Oracle NetSuite platform, presents significantly higher upfront and ongoing costs. <br />Additionally, GovSense currently has no established client base within Minnesota, which raises concerns regarding local <br />peer support and proven state-specific implementation success. <br /> <br />After careful consideration and feedback from current customers, staff recommends proceeding with the selection of <br />BS&A Software as the City’s new ERP solution. While BS&A does not offer the lowest initial cost, it provides a strong <br />balance of functionality, reliability, and customer support. The system is expected to significantly reduce manual <br />processes and improve operational efficiency across departments. BS&A has demonstrated the ability to successfully <br />migrate data from the City’s existing system into its platform, helping to ensure continuity of financial records and