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Date Available

9-10-2026

Year of Publication

2026

Document Type

Graduate Capstone Project

Degree Name

Master of Public Financial Management

College

Graduate School

Department/School/Program

Public Administration

Faculty

Iuliia Shybalkina

Committee Member

Rhonda Trautman

Faculty

Margaret Plattner

Abstract

Municipal procurement policies are intended to balance fiscal accountability with the efficient acquisition of goods and services necessary to support public operations. One of the primary mechanisms used to achieve this balance is the establishment of purchasing thresholds that determine when formal contracts are required. While these controls are essential for protecting public resources, procurement policies should also evolve to reflect changing economic conditions and contemporary public-sector management practices.

The City of Toledo currently requires formal contracts and legislative approval for purchases exceeding $10,000 pursuant to Toledo Municipal Code, Chapter 13, Section 228 (City of Toledo Municipal Code, 2026). This threshold has remained in place since at least 1992 despite more than three decades of inflation and significant increases in the costs of goods and services. As purchasing costs have increased, an expanding number of routine operational purchases now exceeds Toledo’s contract threshold. The purpose of this capstone project is to evaluate whether Toledo’s current contract threshold continues to provide an appropriate balance between fiscal accountability and administrative efficiency. Using a qualitative comparative policy analysis, the study examines procurement policies and administrative practices utilized by the cities of Akron, Cincinnati, Cleveland, Columbus, Dayton and Toledo.

The comparative analysis produced four principal findings. First, Toledo maintains the lowest contract threshold among all municipalities examined. Second, Toledo’s procurement process requires significantly more administrative review than comparable municipalities. Third, peer municipalities maintain strong fiscal accountability through alternative internal controls rather than relying on comparatively low contract thresholds. Finally, both the literature and the comparative policy analysis indicate that extensive procedural requirements generate direct and indirect transaction costs (Glas et al., 2024).

Based on these findings, this capstone recommends that the City of Toledo modernize its purchasing policy by increasing the formal contract threshold from $10,000 to $50,000 or higher, thereby aligning Toledo with comparable Ohio municipalities. The study also recommends incorporating an automatic annual inflation adjustment modeled after the O.R.C. §9.17. The study further recommends examining repetitive approval processes to eliminate administrative duplication and adopting selected procurement practices currently utilized by peer municipalities, particularly the City of Cleveland. Collectively, these recommendations are intended to improve procurement efficiency while preserving transparency and sound fiscal stewardship.

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