Thomasville council workshop: revaluation, tax-rate choices and a tightened budget outlook

City officials at a Feb. 4–5 budget workshop reviewed revenue projections and warned of mounting operational pressures tied to a county revaluation and rising personnel costs.

Finance Director Thomas Avant told the council that property tax remains the City’s largest revenue source at about $15.5 million, with sales tax and utility franchise receipts trailing at roughly $2.3 million and $2.0 million, respectively. Avant said the City faces at least $3.4 million in added recurring needs for fiscal 2027 and another $2 million in 2028 — roughly $5.4 million across two years — driven by multi-year cost-of-living adjustments, continued implementation of a salary study, 12 full‑time positions added in 2026 that require full-year funding, and expected health‑insurance and operational cost increases.

Avant modeled a conservative 36% increase in assessed values from the Davidson County revaluation and calculated a revenue‑neutral tax rate near 48.73 cents (down from 62 cents). He told the council that keeping the current 62‑cent general fund rate would generate the additional revenue needed without an immediate rate increase, while staff recommended clear messaging emphasizing that the revaluation itself is administered by Davidson County and that any change in taxpayer bills depends on both new values and the Council’s rate decision.

The workshop also examined special reserves. Avant said a revaluation would meaningfully increase dedicated reserve contributions: the street paving reserve (1 cent) could grow from ~$244,000 to ~$330,000 annually, the recreation reserve (3 cents) from ~$221,000 to ~$473,000, and the economic development reserve (0.5 cent) from ~$122,000 to ~$163,000. Debt scenarios showed a $3 million loan at 4.25% would cost roughly $312,000 per year in debt service, while an $8 million project would require $700,000–$800,000 annually and would likely necessitate an explicit tax‑rate increase because recurring revenue is not available to cover that level of debt service.

Council discussion focused on priorities, messaging, and trade‑offs. Mayor Pro Tem Hunter Thrift raised concerns about impacts on elderly taxpayers, while Council Member JacQuez Johnson questioned adding 12 positions while speaking of revenue neutrality. The group expressed general support for holding the general fund rate at 62 cents and moving the school fund rate to revenue neutral to provide modest relief for school district residents; staff will return with formal options, fiscal impacts and communications plans ahead of any rate adoption.

The council did not record a formal vote at the workshop; staff was directed to prepare documentation and budget scenarios for committee review in March.