Laserfiche WebLink
<br /> <br /> <br />DATE: December 10, 2025 <br /> <br />TO: Honorable Mayor & City Councilmembers <br /> <br />FROM: Sharon Provos, Finance Director <br /> <br />TOPIC: Purchasing Policy <br /> <br /> <br />BACKGROUND <br /> <br />On, March 1, 2022 the City Council approved the current City Purchasing Policy. That <br />policy defined the threshold for a capital asset to a cost greater than $5,000 and a useful life <br />of five years or longer. We would like to increase the threshold for a capital asset to a cost <br />greater than $10,000. <br /> <br />The Government Accounting Standards Board (GASB) recently revised its implementation <br />guideline for Guide No. 2021-1. The revision states that if a government buys similar, <br />lower-cost items (like computers, furniture) together, they should be aggregated and <br />capitalized as a group if their total cost is significant enough to influence financial <br />statement users, even if each item individually falls below the entity's standard threshold <br />(e.g., $10,000). After discussions with our auditors, we determined that we should update <br />our Purchasing Policy to address the GASB revision and set a $50,000 threshold for bulk <br />purchases to be capitalized. <br /> <br />We have also made some housekeeping changes to Appendix A to reflect current <br />workflows. <br /> <br />RECOMMENDATION <br /> <br />Staff recommends approving the revised purchasing policy. <br /> <br />ACTION REQUESTED <br /> <br />If Council concurs with staff recommendation, they should pass a motion to approve the <br />revised Purchasing Policy. <br />