athens tn acfr fy2025

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CITY OF ATHENS, TENNESSEE
MANAGEMENT’S DISCUSSION AND ANALYSIS
JUNE 30, 2025
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As management of the City of Athens, we offer readers of the City’s financial statements this narrative 
overview and analysis of the financial activities of the City of Athens for the fiscal year ended June 30, 
2025. We encourage readers to consider the information presented here in conjunction with additional 
information that we have furnished in our letter of transmittal, which can be found in pages i-iv of this 
report.
Financial Highlights
 The assets and deferred outflows of the City of Athens exceeded its liabilities and deferred
inflows at June 30, 2025, by $100,028,561 (net position). Of this amount, $54,783,370
(unrestricted net position) may be used to meet the City’s ongoing obligations to citizens and
creditors.
 Net position increased by $4,456,376, an increase of 4.67% compared to fiscal year 2024 total net
position as restated. The City of Athens’ changes in net position is detailed in the chart on page
10 of this report. Total revenues decreased $483,546, primarily due to a decrease in capital grants
from the previous year related to a CDBG that ended in 2024. Expenses increased $1,126,673
primarily due to the addition of three new firefighters, full implementation of the
classification/compensation plan for police and fire and a reduction in the number of vacant
positions in the police department.
 The City’s property tax rate remained at $1.0078 per hundred dollars of assessment.
 The City’s residential sanitation fee remained at $9.50 per month.
 As of the close of the current fiscal year, the City of Athens’ governmental funds reported
combined ending fund balances of $55,207,778.
 At the end of the current fiscal year, unassigned fund balance for the General Fund was
$19,221,791 or 94.94% of total General Fund expenditures. Expenditures do not include transfers
to other funds, which totaled $3,462,000 in the City’s General Fund. The percentage drops to
80.47% if transfers are included with the total expenditures. This demonstrates the City’s fiscal
discipline and places the City in a strong financial position to meet unexpected emergencies,
uncertainties at the State level or slowdowns in the economy.
Overview of the Financial Statements
This discussion and analysis are intended to serve as an introduction of the City of Athens’ basic financial 
statements. The City of Athens’ basic financial statements comprise three components: 1) government-
wide financial statements, 2) fund financial statements, and 3) notes to the financial statements. This 
report also contains other supplementary information in addition to the basic financial statements 
themselves.
Government-wide financial statements. The government-wide financial statements are designed to 
provide readers with a broad overview of the City of Athens’ finances, in a manner similar to a private-
sector business.
The statement of net position presents information on all of the City of Athens’ assets, deferred outflows 
of resources, liabilities and deferred inflows of resources, with the difference reported as net position. 
Over time, increases or decreases in net position may serve as a useful indicator of whether the financial 
position of the City of Athens is improving or deteriorating.