Primary Department: Management and Budget
Primary Department Head/Elected Official: Daniel Ramos, Executive Director
Secondary Department: Choose an item.
Secondary Department Head/Elected Official:
Regular or Supplemental RCA: Regular RCA
Type of Request: Policy
Project ID (if applicable): N/A
Vendor/Entity Legal Name (if applicable): N/A
MWBE Contracted Goal (if applicable): N/A
MWBE Current Participation (if applicable): N/A
Justification for 0% MWBE Participation Goal: N/A - Goal not applicable to request
Grant Indirect Costs Rate (if applicable): N/A
Justification for 0% Grant Indirect Costs Rate (if applicable): N/A - Not a grant item
Request Summary (Agenda Caption):
title
Request for approval of a change to the Capital Expenditures for Debt Purposes Policy to lower the per-unit threshold for bulk equipment purchases of law enforcement equipment, technology equipment, and furniture.
end
Background and Discussion:
On April 23, 2024, Commissioners Court approved the Capital Expenditures for Debt Purposes Policy (“the Policy”). The Policy established a $1,000 unit price threshold for equipment purchased as a part of a bulk purchase of $50,000 or greater.
In the past two years, the Office of Management and Budget (OMB) has gained more experience and feedback from departments regarding capital equipment purchases. Additionally there are more demands on the general fund than there were two years ago when the Policy was first approved.
There are certain instances of larger quantities of equipment that are purchased that fall below this threshold, most often for law enforcement equipment (e.g., firearms), technology equipment (e.g., tablets), and furniture (e.g., chairs). We want to proactively meet department needs and minimize incentives to purchase more expensive equipment just to meet a threshold.
OMB recommends lowering the per-unit threshold from $1,000 to $500 for bulk equipment purchases of law enforcement equipment, technology equipment, and furniture. There are no further proposed changes to the Policy.
Expected Impact:
This will provide greater fiscal flexibility to Commissioners Court and departments. While OMB anticipates less than $3 million of additional equipment will qualify due to the threshold change, the planned FY27 capital budget will be based on the County’s fiscal position, so this change will not impact the County’s overall capital budget.
Alternative Options:
Commissioners Court could not approve this item. This would decrease fiscal flexibility and increase use of general and other operational funds on durable equipment. It would also likely mean use of older equipment in many cases, as departments may need to defer upgrading and updating equipment due to limited general fund availability.
Commissioners Court could choose a different threshold for bulk equipment. OMB recommends $500 for certain types of expenditures as it provides operational flexibility while maintaining reasonable restrictions on use of capital funds.
County Strategic Plan Goal: N/A
County Strategic Plan Objective: N/A
Justice/Safety Initiative (Goal 1): N/A
Infrastructure Initiative (Goal 2): N/A
Economy Initiative (Goal 3): N/A
Health Initiative (Goal 4): N/A
Climate/Resilience Initiative (Goal 5): N/A
Housing Initiative (Goal 6): N/A
Additional notes related to the Strategic Plan:
Prior Court Action (if any):
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Date |
Agenda Item # |
Action Taken |
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4/23/2024 |
47 |
Request for approval of Capital Expenditures for Debt Purposes Policy. |
Location:
Address (if applicable): N/A
Precinct(s): Countywide
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County Attorney’s Office Legal Review (for Harris County Code Items only) |
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Anticipated Court Date: 4/16/2026
Anticipated Implementation Date (if different from Court date): Click or tap to enter a date.
Emergency/Disaster Recovery Note: Not an emergency, disaster, or COVID-19 related item
Contact(s) name, title, department: Fahad Gulzar, Acting Deputy Executive Director, OMB, William McGuinness, Director-Capital Projects & Infrastructure, OMB
Attachments (if applicable): Capital Expenditures for Debt Purposes Policy, April 2026