athens tn acfr fy2025

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CITY OF ATHENS, TENNESSEE
MANAGEMENT’S DISCUSSION AND ANALYSIS
JUNE 30, 2025
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The fund balance of the General Obligation Bond Fund decreased by $373,843. Bonds were issued in 
2021, and these funds were used in the current year for construction of the new animal shelter, purchase 
property for a new fire station and road work in the area around the new city school. 
The Debt Service Fund for school projects increased $1,230,941 for the year but was impacted by the 
proceeds of permanent financing of $5,000,000 to repay a corresponding amount for temporary financing 
during construction of the new school. Remaining funds from the School Construction Fund were 
transferred in to go toward the payment of the debt.
The Capital Improvement Fund decrease was $
801,561. Capital items consisted primarily of new radios 
for fire, police and public works, tennis/pickleball courts at Ingleside, Heritage Park renovations, property 
purchase at Regional Park and stormwater engineering expenditures.
The School Construction Fund decreased by $1,499,471 due to completion of the new school project.
Proprietary funds. The City of Athens’ proprietary funds provide the same type of information in the 
government-wide financial statements, but with more detail.
Unrestricted net position at the end of the year amounted to $165,508 for the Conference Center Fund, 
$2,886,387 for the Sanitation Fund, $7,982,914 for the Fleet Management Fund and $303,834 for the 
Employee Medical Benefits Fund.
General Fund Budgetary Highlights
Differences in the original budget and the final amended budget for revenues were $745,000 and 
consisted of increases in property taxes, local sales tax, in lieu of taxes, business taxes, building permits, 
state excise tax, grant funds from the State of Tennessee for police, interest income and insurance 
recoveries. Transfers in increased by $629,000 for funds transferred from the Capital Improvement Fund.
Differences between the original budget and the final amended budgeted expenditures, including 
transfers, were $3,074,000 and are summarized below:
 $629,000 for retirement expenditures for all departments as a result of an additional contribution
to the defined benefit pension plan.
 $48,000 for health insurance and fixed assets in public works.
 $31,000 for utilities and supplies for the first full year of the new shelter operations in animal
control.
 $127,000 for salary and related benefits, program costs, liability insurance, and building repairs
and maintenance in parks and recreation.
 $264,500 for employee benefits, liability insurance and fixed assets funded by state grants in
police.
 $154,500 for miscellaneous line items in general government departments. These consisted
primarily of salary for the new city manager, legal fees, liability insurance and building repairs at
City Hall.
 $1,700,000 increase in transfers due to transfers to the Capital Improvement Fund, which was
related to excess fund balance.