Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the City Finance And Procurement topic
No spam. Unsubscribe anytime.
Council keeps current purchasing limits but agrees to GSA per diem and a stricter grant-funding SOP
Summary
City administrators sought higher delegated purchase limits and other updates; the council deferred increases, approved use of the federal GSA per-diem schedule, and asked staff to draft a policy requiring identification or encumbrance of funding before applying for grants.
City staff proposed several updates to procurement and travel policies at the March 16 Crookston City Council meeting; council members kept current purchasing limits for now, endorsed using the full federal General Services Administration (GSA) per-diem schedule for travel reimbursements, and asked staff to produce a standard operating procedure (SOP) to document secured funding for grant applications.
Purchasing limits: City administration recommended raising the administrator purchase limit from $10,000 to $25,000 and department-head limits to $10,000 (quotes from vendors still required). City staff cited rising costs and operational examples ' such as seasonal or maintenance payments ' to justify the change. Council members expressed concern about oversight and the role of elected officials in budgetary control; one council member said they would prefer additional oversight rather than a higher delegated limit. The council directed staff to bring the purchasing policy forward with the original limits rather than adopt the proposed increases at this time.
Travel reimbursement: Staff proposed aligning the city's travel-reimbursement policy with the federal GSA meal and incidental expense (M&IE) schedule. City staff noted the GSA schedule includes higher rates for certain metropolitan areas (for example, Minneapolis'St. Paul has a higher per-diem tier than the base national level). The council gave consensus to use the full GSA schedule and to treat the GSA schedule citation as the policy reference so the rates update automatically each year. Staff and council also discussed whether to require itemized receipts or use a per-diem approach (with the GSA first/last-day rule at 75%); a majority favored a per-diem-aligned approach to reduce administrative burden.
Grants and 'secured funds: Staff proposed changing the city's practice for grant applications so the funding source is identified and, when appropriate, funds are encumbered in the finance system before an application is submitted. Staff said the change is intended to prevent double-counting the same unallocated dollars across multiple prospective projects. Council members agreed staff should draft a policy or SOP that identifies funding sources (cash, bonds, or other committed sources) before a council authorization to apply or encumber funds. Council members emphasized the SOP should not stop grant applications from being brought forward, but should provide clearer documentation and, when practicable, place funds in a restricted account or encumber them in the financial system to avoid later shortfalls.
Key council and staff comments included city administration noting the limits increase was meant to avoid operational delays for repairs and routine purchases, and finance staff asking to be consulted early in project development so funding options can be confirmed before agenda placement. The council asked staff to return with formal policy language for review.
