athens tn acfr fy2025

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CITY OF ATHENS, TENNESSEE
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2025
A - 95
NOTE 13 – TAX ABATEMENTS (Continued)
The City has a tax abatement agreement with one entity as of June 30, 2025:
Percentages of Taxes Amount of Taxes
Abated during Abated during
the Year the Year
Denso Tennessee, Inc. 50% $ 62,162
NOTE 14 – CONSOLIDATION OF SCHOOLS – BUILDING PROGRAM
As of June 30, 2024, the Board had completed the school Building Program to consolidate the 
number of school facilities into the current middle school and the new Pre-K-5 facility. 
The City of Athens has approved debt of $40,000,000 to fund the Building Program. An 
agreement between the City and the Board requires the Board to provide $700,000 annually to the 
City based on anticipated savings from operating fewer facilities once the construction is 
completed. 
NOTE 15 – COMMITMENTS AND CONTINGENCIES
The Athens Utilities Board has debt issues with outstanding balances totaling $16,246,319
representing debt issued by the City where the Utilities Board has assumed all responsibility 
through resolution. This long-term debt is reported in the Athens Utilities Board financial 
statements. The debt service is to be paid through user fees and Board funds, but the City is 
required to establish ad valorem taxes under each debt issue if Utilities Board funds are not 
sufficient to service the debts.
The City is subject to lawsuits and claims arising out of its business nature. Management, after 
review and consultation with counsel, believes that any liability, not covered by insurance, from 
these lawsuits would not materially affect the financial position of the City.
The City has received several federal and state grants for specific purposes which are subject to 
review by the grantor agencies. Such reviews could lead to a request for reimbursement to the 
grantor agencies for any expenditures disallowed under the terms of the grants. Management 
believes that such disallowed costs, if any, would be immaterial.
NOTE 16 – RISK MANAGEMENT AND LITIGATION
The City is exposed to various risks of loss to torts; theft of, damage to , and destruction of assets; 
errors and omissions; injuries to employees; and natural disasters for which the government 
carries commercial insurance or participates in the Public Entity Partners Risk Management Pool. 
The Public Entity Partners Risk Management Pool is a public entity risk pool which provides 
coverage for a variety of risks to Tennessee governments. The City does not retain the risk of loss 
under coverages with the pool. There have been no significant reductions in insurance coverage 
and settlement amounts have not exceeded insurance coverage for the current year or the three 
prior years.