Council receives CPI escalator update that raises local purchasing threshold

The Peoria City Council on July 22 received and filed a staff communication showing the city’s purchasing threshold has escalated with the Consumer Price Index since 2012, raising the threshold described in the purchasing ordinance from its historical $15,000 level to about $45,000.

Council member Kelly asked for clarification about the calculation and its frequency. City staff said the purchasing ordinance was changed in February 2012 to allow an annual escalation tied to the CPI; staff is required to notify the council — by the first meeting in July — of the change each year.

The manager explained the calculation uses a CPI-U factor that accounts for categories such as construction and other costs; staff said the resulting amount reflects CPI increases since the 2012 ordinance change. Council members asked whether the notification happens annually; staff confirmed it does and said the next CPI update would be brought forward at the first meeting in July next year.

Council received and filed the communication by unanimous vote. No ordinance language was changed at the meeting; this action was informational to document the CPI-adjusted purchasing threshold and to meet the notification requirement called for in the purchasing ordinance.

Staff said the ordinance will continue to escalate annually with the CPI and that the city clerk will provide the required annual notice to council. The council took no further action.