BOULDER - The city of Boulder will upgrade its 16-year-old public administration system using a Texas firm's software product.

The city has signed an agreement to use Plano, Texas-based Tyler Technologies Inc.'s (NYSE: TYL) system called Munis, which consists of software applications for finances, human resources, payroll processing, asset management, citizen services and revenue, and utility billing.

Boulder city officials selected Tyler Technologies' product after a competitive review. Don Ingle, the city's information technology director, said the system cost is $2.3 million, which includes the software and implementation. Tyler Technologies will be retained on an annual contract at an estimated $130,000 per year for support services and maintainence, he said.It will be paid for with money from the city's 2011 Capital Bond Initiative.

Ingle expects the finances component of the system will be operational by the start of 2015, and the human resources portion will become operational in the second quarter of 2015.

Ingle said the system's utility billing feature was a factor in deciding to go with Tyler Technologies.

"Utilities have a special set of accounting practices to follow, and this software can do that," he said.

For several years, Boulder has been working toward a way to break away from Xcel Energy Inc. and create its own municipal electric utility.

Richard E. Peterson Jr., president of Tyler's ERP & School Division stated in a press release, "Throughout the negotiation process, we communicated to the city that we were committed to being its partner for the long-term. We believe that this commitment, combined with Tyler's public-sector expertise and the functionality of Munis, will help Boulder better and more efficiently leverage its technology resources."