Thomasville is reaching a critical juncture regarding its financing. We have been proud of being one of the few cities that doesn’t levy a property tax. But this policy, which has helped attract new residents and new business as well as create jobs, is becoming unsustainable.

To retain this benefit for taxpayers, the city has had to forego long overdue improvements to our infrastructure, such as badly leaking water pipes more than a century old that are going unrepaired and costing the city more each year. The city’s financial cushion is about gone, which has hurt our bond rating, according to City Manager Alan Carson, making it impossible to arrange the financing we need to undertake this work. 

He has suggested that the City Council consider restoring a property tax. And that’s sound advice. Reinstating this tax would be responsible policy; it would put the city on a secure financial footing that would allow it to undertake the projects our growing and vibrant city will require in the future. And, important as well, a property tax would be fairer to all our citizens and a more progressive way of financing city operations. 

How we got where we are

The city has managed to creatively fund its operations and avoid a tax by relying on fees that make some departments self-funding, by scrutinizing spending to keep costs down and, most importantly, by developing a successful utility service that is not only more efficient than Georgia Power but also profitable. Its surpluses have allowed the city to transfer money from utility revenue to the general fund — while maintaining competitive utility rates. 

This year that transfer was more than $10 million. But this is also an arrangement that, even with more budget cuts and fee increases, is becoming less viable because of rising costs. 

If rate increases would preserve the status quo – and they are in the offing — there’s a strong argument nevertheless for ending the utility transfers: Funding city operations through utility revenue is regressive and places an undue burden on our lower income residents, who typically live in older and poorer quality houses or rental houses that are less energy efficient. (About half our population lives in rental housing.) Their energy bills are proportionately higher as a result. Those with lower incomes also spend a higher proportion of them on necessities like utilities, which means that rate increases impact them the most. 

Not surprisingly, residents have complained to the council about utility bills but their complaints have gone unanswered for the most part. Some of these residents live in majority Black areas where their unhappiness is undermining racial harmony.

While considering a property tax — and recognizing how much high-value property there is in our city — the council should consider rectifying this situation and ask those who can afford to carry a greater share of city funding to do so.

Some better alternatives 

Instead of transferring any surplus utilities revenue to city operations, the city might use that money to:

• Freeze utility rate increases or discount utility bills for lower income people.

• Subsidize energy efficiency improvements by homeowners and landlords. 

• Encourage solar or other green energy options that would move Thomasville toward energy sustainability (and do our part to cope with climate change). 

Discounting utility bills for elderly and lower income resident would benefit the city at large. Unlike the incomes of many better off residents, the money that would remain in their pockets would be mostly spent at local businesses, including those in their neighborhoods. That spending would encourage business development in struggling neighborhoods as well as boost Thomasville’s economy generally.

It would also be an efficient method of attacking the city’s problems with poverty and deteriorating housing (about a fourth of Thomasville’s residents fall below the poverty line) as well as helping to meet the need for more affordable housing. Residents know their needs best and could spend that money on what matters most to them, whether that is home improvements, savings for a down payment on a home, purchases of fresh food with the better health options that would bring, or money for education.

In other words, investing any utilities surplus in our communities would empower residents to help themselves and encourage more of the upgrades we’ve seen recently in less-well-off neighborhoods. 

Thomasville has long prospered among cities in South Georgia by being forward thinking. We should do that again by facing up to this challenge and having a serious and thorough discussion now about our options.  

Mark Anderson

Howell Ferguson