athens tn acfr fy2025

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CITY OF ATHENS, TENNESSEE
MANAGEMENT’S DISCUSSION AND ANALYSIS
JUNE 30, 2025
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Additional information on the City of Athens’ capital assets can be found in Note 4 on A-41 to A-44 of 
this report.
Long-term debt. At the end of the current fiscal year, the City of Athens had USDA Community 
Facilities Loans in the amount of $39,244,707 payable for the construction of a new Pre-K to 5th grade 
school building, resulting in four schools being combined into one. The City has a 2021 general 
obligation bond debt outstanding in the amount of $6,395,000. These funds were used for a new animal 
shelter, a fire training facility, street improvements related to the new school being constructed, public 
works offices and renovations to City Hall. The City also has a lease payable in the amount of $80,525.
The Athens Utilities Board has debt outstanding totaling $16,246,319 to be repaid by user fees and Board 
funds. In the event of default, the City is required to establish ad valorem taxes to repay the outstanding 
debt. Detailed information on long-term debt activity can be found in Note 5 on pages A-45 to A-50 of 
this report.
State statutes do not limit the amount of general obligation bonded debt a governmental entity may issue.
Economic Factors and Next Year’s Budgets and Rates
The unemployment rate for the City of Athens is currently 5.3%, which is an increase from the rate of 
4.6% a year ago. Athens’ rate is higher than the federal rate and the state rate.
The growth in the local option sales tax and the state shared sales tax has slowed compared to the period 
of 2020 to 2024. Both of these increased at less than 3% for the current year. Management has been 
conservative in estimating all revenues for 2025-2026. The 2025 and 2026 personal property taxes will 
decline by approximately $400,000 each year due to the state mandated equalization adjustment. The 
property tax rate remained at $1.0078 for the 2025 taxes and the monthly residential refuse fee remained 
at $9.50.
Requests for Information
This financial report is designed to provide a general overview of the City of Athens’ finances for all 
those with an interest in the City’s finances. Questions concerning any of the information provided in this 
report or requests for additional financial information may be addressed to the City of Athens, Office of 
the Finance Director, 815 North Jackson Street, Athens, Tennessee 37303.