Council updates purchasing policy to match state law, adopts FY2025–26 budget and sets tax rate

City staff presented three linked items at the Sept. 2 meeting: a purchasing-policy amendment to reflect SB1173, adoption of the fiscal-year 2025–26 budget, and a statutory tax-rate motion required by state law.

Purchasing policy: Joe Orem and finance staff explained SB1173, enacted the prior day, increases the dollar threshold triggering a formal advertised bid from $50,000 to $100,000. Staff told council informal competitive processes and documentation for purchases under the formal threshold will remain, including outreach to historically underutilized businesses (HUBs) as part of the informal-quote documentation. Council discussed training for staff and the practical effect that some items previously returning to council at $50,000–$100,000 will now remain in staff procurement but still in-budget and subject to internal competitive procedures. Council approved the policy amendment.

Budget: Staff summarized the FY2025–26 budget (effective Oct. 1, 2025) and said the only change since the prior meeting was removal of a $70,000 pavement-condition-index study from the proposed budget. After public notice and previous discussion, council moved to adopt the budget and the motion passed.

Tax rate: Staff described the difference between the "no-new-revenue" rate (59.9¢ per $100 valuation) and the proposed rate not to exceed 63¢ per $100 valuation. Staff explained statutory phrasing required by the legislature can present as an "increase" even when the nominal rate is lower than the prior adopted rate; council read the verbatim statutory motion and approved the 63¢ rate. The motion passed.

Staff said the changes to procurement procedures are effective immediately under the new state statute and that council would see fewer midrange procurement items on consent agendas. Council flagged the need for staff training and documentation when using informal competitive processes and reaching out to HUBs.