Title
Amend Chapter 2, Article I, Phoenix City Code Relating to Payment Ordinance Threshold (Ordinance G-7126)
Description
Request City Council amend Phoenix City Code, Chapter 2, Article I, Section 2-4, entitled "City Manager authority for the enforcement of ordinances; distribution of work; settlement of claims" to increase the payment ordinance threshold, effective Sept. 1, 2023.
Report
Summary
The amendment to Phoenix City Code, Chapter 2, Article I, Section 2-4(B), will increase the payment ordinance threshold from $8,600 to $32,000. Specifically, as shown in Attachment A, "eight thousand six hundred dollars" will be removed and replaced with "thirty two thousand dollars."
Per Phoenix City Charter, Chapter IV, Section 12, City Council has authority to adjust the payment ordinance threshold every four years to account for changes in the cost of living. City staff evaluated adjustment of the payment ordinance threshold using the Government Consumption Expenditures and Gross Investment (GCE) Index. GCE serves as a cost of living metric well suited for government entities. Applying the GCE average four-year increase rate from 1990 until 2023 supports an increase in the payment ordinance threshold to $32,000.
Concurrence/Previous Council Action
City Council previously amended Phoenix City Code Chapter 2, Article I, Section 2-4 (Ordinance G-3286) on Dec. 6, 1989 and (Ordinance G-4796) on May 10, 2006.
Department
Responsible Department
This item is submitted by City Manager Jeffrey Barton and the Finance Department.