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Timnath council adopts higher purchasing thresholds to speed procurement

5070926 ยท June 25, 2025
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Summary

Council unanimously adopted Ordinance 8 (Series 2025) raising procurement delegation and competitive-bid thresholds; staff said the changes align Timnath with similar-sized municipalities and will be supported by a new electronic requisition system.

The Timnath Town Council on June 24 adopted an amended purchasing policy that raises internal approval thresholds and adjusts the competitive-bid threshold, Finance Director Lisa Galliardi told the council during a public hearing and second-reading vote.

Under the adopted changes, town manager delegation and council-authorization thresholds increase to the $100,000 range (council action triggers above $100,000), department-head delegation rises to $50,000, department delegation to $25,000 and the competitive-bid threshold moves from $35,000 to $50,000, Galliardi said. The town also maintains a purchase-order requirement and encumbrance process at $10,000.

Galliardi framed the changes as a catch-up to the town's growth: Timnath's budget has increased by about $11 million since 2020, full-time staff more than doubled and the town has a dedicated procurement specialist and an electronic encumbrance system. "Town council authorization goes from $35,001 to a $100,001. Town manager goes from 35,000 to 100,000. Department heads goes from 10,000 to 50,000," Galliardi said.

Council members on the finance committee reviewed the draft policy and asked for additional transparency measures. Galliardi said the monthly financial report will include the status of competitive proposals and awarded contracts so the council and public can track larger purchases. She also outlined internal controls: requisitions will be reviewed by finance, purchase orders will encumber funds, and automated approval workflows in the town's Tyler financial software will be implemented so multiple staff approvals will be required at set thresholds.

Council members said they were comfortable with the higher thresholds given the added controls and the annual audit schedule; the town's auditor will review the policy during the 2025 audit cycle in early 2026. Council voted 5โ€“0 to adopt Ordinance 8, Series 2025, amending the purchasing policy.

The town will begin implementing automated requisition and approval workflows in Tyler in July; staff said they will provide a draft of monthly reporting formats to council and adapt as requested.