Funding & Procurement/How to Justify Software Costs to Boards and Councils

How to Justify Software Costs to Boards and Councils

How to Justify Software Costs to Boards and Councils

Published on June 22, 2025

Helping Municipal Leaders Understand the Value Behind the Price Tag

Municipal leaders and department heads often find themselves in the position of needing new software, whether for asset management, permitting, financial reporting, or public engagement, but must first secure approval from a town board, village council, or finance committee. These decision-makers are rightly concerned with budgets and fiscal responsibility, but they may not have firsthand experience with the operational challenges the software addresses.

So how can you make the case? Here are practical strategies to justify software costs to boards and councils:

 

Focus on Outcomes, Not Features

Avoid listing a long roster of technical features. Instead, explain the practical problems the software solves:

  • “This will help us track storm drain cleanings and prove MS4 compliance.”

  • “It will eliminate paper-based work orders, reducing time spent rewriting notes and reducing lost information.”

  • “It will allow us to respond to citizen requests faster and keep a digital history of what was done.”

Decision-makers respond to clear, tangible outcomes that align with public expectations and regulatory requirements.

 

Translate Efficiency into Dollars

Time savings are often the largest benefit. If the software reduces administrative tasks by 10 hours per week, that’s over 500 hours annually. Assign an hourly rate to those savings, or calculate how the time could be redirected to higher-value work.

  • “This will save us roughly $20,000 a year in administrative time that can be redirected toward direct services.”

Also consider reductions in errors, compliance penalties, or overtime labor that can be avoided.

 

Present Cost Comparisons and Alternatives

Show that you’ve done your homework:

  • How does this product compare to others in the same category?

  • Have other municipalities of your size adopted it?

  • What are the risks and costs of doing nothing?

Include the cost of not adopting a software solution, such as inefficiency, audit findings, data loss, or staff burnout.

 

Use Case Studies and Testimonials

Boards appreciate real-world examples. If other towns or counties in your region are using the software, include brief case studies:

  • “Town of Smithville adopted this system last year and reduced customer complaints by 40%.”

If possible, bring in a peer or vendor who can speak during a public meeting or provide a letter of support.

 

Clarify the Total Cost of Ownership

Break down the cost so there are no surprises:

  • Upfront setup fees
  • Annual or monthly subscription
  • Training costs (if any)
  • Included customer support or upgrades

Be ready to answer: “Is this a one-time expense or an ongoing cost?” and “What happens if we want to cancel?”

 

Explain Procurement Options

If the software is available through a cooperative purchasing agreement (e.g., Sourcewell, HGACBuy, NASPO), mention this. Boards are more likely to approve expenditures if the procurement process is streamlined and compliant.

 

Offer a Pilot Period or Tiered Start

Some software providers offer trials, phased implementations, or limited-user plans. Suggesting a low-risk pilot can ease board hesitation.

  • “We can start with a 3-user plan for 6 months and assess results before a full rollout.”

 

Tie the Request to Broader Goals

Frame the purchase in the context of larger initiatives:

  • Transparency and public service

  • Compliance and audit readiness

  • Infrastructure preservation

  • Digital modernization

When software purchases support already-approved plans or objectives, boards are more receptive.

 

Speak Their Language

Boards and councils aren’t software experts, but they care deeply about good governance. When you link your request to operational improvement, fiscal responsibility, and better service to the public, you make the software’s value clear, and worth the investment.

 


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