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Shenandoah adopts procurement policy updates reflecting new state law; council asks for purchase reporting
Summary
The council voted to revise procurement and accounts‑payable policy to align with SB 1173, which raises the competitive‑bid threshold to $100,000; members requested periodic reporting on purchases that fall within the new range and discussed separating asset‑forfeiture receipts into their own fund.
Shenandoah — On Jan. 14 the City Council approved updated procurement and accounts‑payable policies to align with recent state legislation that raises the competitive‑bid threshold and to clarify handling of certain receipts.
Staff said Senate Bill 1173 raises the threshold for competitive bidding from $50,000 to $100,000 and the redlined policy reflects that change throughout the document. The staff presentation also addressed an apparent conflict between penal code direction on asset‑forfeiture disbursement and the city administrator’s purchasing limit; auditors recommended moving forfeiture proceeds into a separate fund under Governmental Accounting Standards Board (GASB) guidance, and staff planned to present fund‑establishment language to council following the audit cycle.
Council members expressed concern about transparency when the city uses unencumbered available cash for capital projects and asked for a clear monthly reporting approach that distinguishes encumbered from unencumbered balances. Staff said they track these balances and will develop a process to report them in a way that is practical and not operationally burdensome.
“We will move that into a fund,” staff said of the auditor’s recommendation on forfeiture proceeds, adding staff will bring a follow‑up agenda item after the audit to establish reporting and fund structure.
What council approved - Procurement policy updates reflecting SB 1173 (competitive‑bid threshold increased to $100,000). - A carve‑out to clarify treatment of asset‑forfeiture receipts pending statute or code requirements; auditors recommended a separate fund for forfeiture receipts.
Next steps Staff will propose a reporting process for unencumbered available cash, bring an agenda item to create a separate forfeiture fund per GASB guidance, and continue to solicit competitive bids for capital projects as appropriate.
