NEW ULM – The New Ulm City Council agreed to raise the minimum purchasing requirement for New Ulm City’s staff from $2,500 to $5,000.

During Tuesday’s New Ulm City Council meeting, City Finance Director Nicole Jorgensen recommended the council update the purchasing policy. In 2015, the city set the minimum purchase order requirement at $2,500. This means anything ordered by city staff at $2,500 or over this price needed a formal purchase order.

Jorgensen said since 2015, inflation has increased significantly. Certain items that previously did not require a purchase order now required a purchase order increasing. This applies to even low-risk purchases and has increased the volume of staff paperwork. In some cases; specifically for maintenance, staff need to address problems quickly and the $2,500 purchase order threshold has delayed responses.

A review of other communities like North Mankato, St. Peter, Marshall and Hutchinson had purchase order thresholds at $5,000 or higher.

City Councilor David Christian said he had no issue with the update and made the motion to approve the minimum increase to $5,000 with a second from Councilor Tom Schmitz. It was unanimously approved by the council.