In addition to the bid threshold, what other financial requirement must municipalities adhere to?

Adhering to state contract limits is crucial for municipalities as it ensures that they remain compliant with state laws governing financial transactions and contracts. These limits are designed to promote fairness and transparency in the procurement process, preventing municipalities from entering into contracts that exceed their financial capabilities or statutory limits. This requirement helps to ensure fiscal responsibility and accountability in how public funds are spent, thereby protecting the interests of taxpayers and ensuring that funds are allocated efficiently for necessary services and projects.

The established thresholds and limits are set by the state to create a standardized framework that municipalities must operate within. By complying with these limits, municipalities can better manage their financial obligations and reduce the risk of overspending or mismanagement of public resources.