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Thomasville audit shows strong fund balance but flags water and sewer asset condition
Summary
A draft 2025 audit presented Nov. 17 gave Thomasville a clean, unmodified opinion and an 84.5% General Fund balance, but auditors warned the water and sewer capital asset condition ratio (29.22%) is well below the 50% threshold, suggesting near-term capital needs.
Jill Vang of Martin Starnes & Associates told the Thomasville City Council on Nov. 17 that the city's draft 2025 audit would receive an "unmodified (clean) opinion" and that the General Fund's available fund balance stood at 84.5% of net expenditures, far exceeding the Local Government Commission's 25% minimum.
The finding underscores strong near-term fiscal flexibility even as overall revenues rose 10.8% (about $3.6 million) and expenditures increased 6.3% (about $2 million) compared with the prior year. Major revenue drivers included a 4.9% increase in ad valorem taxes and higher sales and service receipts after golf-related fees were incorporated into the General Fund. Key expenditure increases included an 11.4% rise in public safety and an 11% increase in public works; general government spending fell 23.9%.
Vang also identified a performance concern: the water and sewer capital asset condition ratio was 29.22%, below the LGC's 50% guideline. She said this lower ratio may indicate the need to replace or rehabilitate utility assets sooner than planned. The audit remained in draft pending federal compliance supplements, which the auditors said must be released before the report is finalized.
Council Member Payton Williams asked for clarification on what the fund balance percentage represents; Vang explained it indicates how much of the city's expenditures could be covered by available funds if revenue ceased. Council Member Scott Styers asked about Council-designated funds; Vang said those funds are included in the available balance when they are not restricted by third parties.
The auditors said they would submit required documentation and a letter from Council members to the Local Government Commission after the audit report is finalized.
