Nelson County supervisors raise purchase-order, capitalization thresholds

NELSON COUNTY, Va. The Nelson County Board of Supervisors adopted Ordinance O2025-08 on Sept. 9, 2025, raising the countypurchase-order threshold from $2,500 to $5,000 and the capitalization threshold from $5,000 to $10,000. The vote was taken by roll call and all supervisors present voted in favor. County staff said the changes are intended to reduce administrative burden and align the county with federal guidance and neighboring localities. Grace, a county staff member presenting the proposal, told the board a purchase order is currently required for purchases over $2,500 and three quotes are required at that level; the county historically treated $5,000 as the minimum at which an asset is capitalized rather than expensed. Grace said the county is proposing to change the purchase order threshold to $5,000 and the capitalization threshold to $10,000. Grace cited a 2024 revision by the U.S. Office of Management and Budget (OMB) that raised the uniform guidance capitalization threshold to $10,000 and said the countyauditors, Robinson, Farmer, Cox Associates, advised that raising the county threshold is appropriate given that change. Grace also presented comparative data showing a majority of neighboring localities use a $5,000 purchase-order threshold and shared internal purchase-order trends dating back to 2017. One supervisor urged the change, calling it "a no-brainer" given inflation and the long period since the last threshold adjustment. The ordinance, if adopted, requires an amendment to Chapter 2, Article 1, Section 2-1 (Purchasing Procedures and Policies) of the Nelson County Code; Resolution R2025-87, approved Aug. 12, 2025, authorized the public hearing held at the Sept. 9 meeting. After adoption, staff said they would update the county purchasing policy and circulate it to all departments. The public hearing on the ordinance produced no public speakers. The board recessed to consider any other business and then adjourned the evening session.