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Thomasville staff backs raising unassigned fund balance target to 50%; council debates allowable uses
Summary
City staff proposed increasing the unassigned fund balance threshold from 24% to 50% to improve fiscal resiliency; committee members debated whether amounts above 50% should be limited to emergencies and considered using funds for capital or debt reduction.
City Manager Michael Brandt and Finance Director Thomas Avant presented proposed revisions to the city’s fiscal policy that would raise the unassigned fund balance threshold to 50% of annual expenditures. Brandt said the change would better position the city for disasters and larger unexpected needs: "We all know that you can go through Fund Balance very quickly when you have a disaster," he said.
Avant explained current figures and mechanics: the city currently holds about $20 million (67%) in the unassigned fund balance and auditors report an Available Fund Balance of 74% when reserves are included. He said recent inflows make the timing suitable to adopt a higher target. Committee Member Scott Styers argued for a 60% target but said he could accept 50% for now; Council Member Doug Hunt expressed concern that language should prevent unrestricted spending of amounts over 50% and favored tighter restrictions for non-emergencies.
The proposed policy text retains Council authority to appropriate fund balance "for any purpose it deems appropriate or necessary," but staff noted that other new provisions clarify set-asides for street maintenance and the aquatic center debt. Members agreed to send the revised policy to briefing with suggested wording changes to clarify permissible uses above the threshold.
