athens tn acfr fy2025

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Profile of the City of Athens
The City of Athens, incorporated in 1891, is located in the southeastern part of the state, midway between 
the metropolitan cities of Knoxville and Chattanooga. This unique location affords the citizens of the City 
of Athens the ability to quickly access the amenities of two metropolitan areas. In addition, its proximity 
to the mountains of East Tennessee, the Tennessee River, and whitewater rafting makes it attractive to a 
wide range of individuals. The City of Athens serves a population of 14,084 and occupies a land area of 
approximately 14 square miles.
The City of Athens operates under the council-manager form of government, as authorized under Chapter 
455 of the Private Acts of 1953. The five council members are elected at large. All elections are non-
partisan, and the terms are for four years. Elections are held every two years on the first Tuesday in 
November so that only two or three seats are up for election at any given time. The council members 
select the Mayor and Vice-Mayor every two years at the council meeting in November, following the 
election. Policy-making and legislative authority are vested in the council. The council is responsible, 
among other things, for passing ordinances, adopting the budget, appointing committees, hiring the city 
manager, and appointing the city attorney and city judge. The city manager is responsible for carrying out 
the policies and ordinances of the city council, for overseeing the City’s day-to-day operations, and for 
appointing the heads of the various departments.
The City provides a full range of services which include police and fire protection; sanitation services; the 
construction and maintenance of highways, streets, and infrastructure; recreational activities and cultural 
events. In addition to general government activities, the governing body approves the annual budget, debt 
issues and provides significant funding for the Athens City Schools, which requires the inclusion of these 
activities in the financial statements. The governing body appoints the Athens Utilities Board and 
therefore, these activities are reported separately within the financial statements of the City of Athens.
However, the Athens Housing Authority, the McMinn County Economic Development Authority, the E. 
G. Fisher Library, and the Athens Health and Educational Facilities Board have not met the established
criteria for inclusion; and, accordingly, are excluded from this report.
The annual budget serves as the foundation for the City of Athens’ financial planning and control. The 
council reviews capital outlay needs each year at their annual retreat in January/February. The finance 
department compiles budgetary information to be distributed to the departments by February 28. Budget 
requests are submitted to the finance director in March, at which time the finance department compiles 
the data and makes revenue estimates. Budget hearings are held in April of each year with the department 
heads. In early May, the City Manager and/or Director of Finance make a formal balanced budget 
presentation to the city council.
After much review and debate among the council, the budget is revised to include any recommendations 
of the city council. A revised budget is submitted to city council at the May council meeting. The council 
is required to hold a public hearing on the proposed budget and to adopt a final budget and tax rate by 
June 30 each year, which is the close of the City’s fiscal year. The appropriated budget is prepared by 
fund, function (e.g., public safety), department (e.g., police) and division (e.g., patrol). Department heads 
may make transfers within a division, but transfers of appropriations between divisions and funds require 
approval of the city council. Budget to actual comparisons are provided in this report for each 
governmental fund for which an appropriated annual budget has been adopted.