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Lebanon council updates purchasing thresholds to mirror Oregon law, raising informal procurement limits
Summary
The council approved an ordinance to remove fixed dollar amounts from the city code and reference Oregon purchasing thresholds, moving small procurement limits to $25,000 and intermediate procurements to $250,000 as set under state law, which staff said will speed purchasing and preserve managerial oversight.
The Lebanon City Council on Oct. 8 approved Ordinance 3040 to tie the city's purchasing thresholds to the state of Oregon's updated procurement limits, increasing the small procurement threshold to $25,000 and the intermediate threshold to $250,000, consistent with ORS citations presented to the council.
Finance staff explained the change removes specific dollar figures from Lebanon Municipal Code chapter 3.04 and instead references ORS 279B provisions so future state adjustments flow to city policy automatically. "A lot of things right now fall under intermediate procurement, so that kind of above 10,000 threshold," the finance director said, adding that the higher thresholds reflect inflation and modern costs.
Staff said the city still requires internal approvals: purchases above $25,000 require city manager approval, and budgetary control remains in place. The change is intended to reduce time spent collecting multiple informal quotes for routine purchases that now exceed the old thresholds, such as fencing or equipment replacements. The finance director noted large procurements and capital expenditures will continue to follow formal solicitation rules and that all purchases must be budgeted.
Council discussion focused on operational impact and oversight. A councilor asked what a director must do to buy a $24,000 item; staff replied it remains a direct purchase with recommended due diligence and manager approval. Another councilor emphasized that major purchases would still come before council through the budget process.
The ordinance was seconded and passed during the meeting; staff said it will shorten procurement timelines for routine goods and equipment while preserving budget controls and manager review.
Ending: Ordinance 3040 was adopted; staff will implement the state‑referenced thresholds and continue to use manager review and budgeting to control expenditures.
