AGENDA TITLE:
title
Adopt a Resolution Authorizing the City Manager to Execute Amendment No. 2 to SAAS Service Agreement with Fifth Asset, Inc. of Charlotte, North Carolina to Provide Application and Support Services for the DebtBook Software to Renew the Software Subscription and Add Funds of $46,500 For a Total Agreement Not to Exceed $92,250 (IS-FIN)
end
MEETING DATE:
August 5, 2026
PREPARED BY:
Chia Lor, Accounting Manager
recommendation
RECOMMENDED ACTION:
Adopt a Resolution Authorizing the City Manager to Execute Amendment No. 2 to SAAS Service Agreement with Fifth Asset, Inc. of Charlotte, North Carolina to Provide Application and Support Services for the DebtBook Software to Renew and Add Funds of $46,500 For a Total Agreement Not to Exceed $92,250.
body
BACKGROUND INFORMATION:
Since August 2022, the Finance Division has used the DebtBook software platform to manage the City's debt, leases, and subscription-based technology agreements in accordance with Government Accounting Standard Board (GASB) Statement No. 87 for Leases and Statement No. 96 for Subscription-Based Information Technology Arrangements (SBITAs).
GASB 87 and GASB 96 were implemented in fiscal year 2022 and fiscal year 2023, respectively. These standards require agencies to report leases and software subscriptions as long-term financial obligations rather than simple annual operating expenses. Instead of reporting annual expenses, agencies must recognize the full value of these agreements on their financial statements which involves detailed calculations such as amortization schedules, present value assessments, and implied interest rates for each agreement. These new reporting requirements highlighted the need for a reliable software to manage and track these obligations accurately.
By implementing Debtbook, City has been able to streamline compliance with these standards, improve internal workflow, and enhance the accuracy of financial reporting. This provides gre...
Click here for full text