athens tn acfr fy2025

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iii
Local Economy
The City of Athens enjoys a favorable economic environment and local indicators point to continued 
stability. Local sales tax and state shared sales tax revenues continue to increase and the unemployment 
rate is 5.3% as of June 2025. Building permits were issued in FY25 for projects exceeding $47,000,000 in 
value. A significant renovation began on one of the older strip centers in the City. A portion was 
demolished and rebuilt, bringing in new retailers Marshall’s, Five Below and Ulta Beauty.   
One area that Athens has lacked in development since 2008 has been the construction of single-family 
homes. In 2022 and 2023, more than 150 homes were constructed in Athens. Additional residential sites 
have been planned but no new construction has begun.  
Major industries located within the City include several automotive parts suppliers, manufacturers of 
electrical components and plastics, and a producer of dairy products. Denso, the City’s largest employer, 
added warehouse space during FY24 and in FY25 began a $100,000,000 expansion to add over 50,000 
square feet for increased production. It is expected to add 200 new jobs. Denso also began construction on 
a 6.7 megawatt solar farm.
Drinkard Development began renovating and new construction at their strip center located on Decatur 
Pike. Marshalls, Ulta Beauty and McAlister’s Deli are new businesses within the center. Starr Regional 
Medical Center began a $12,000,000 expansion that will double the size of the ICU. Drip Kitchen and 
Dutch Bros. Coffee have begun construction of their new businesses in Athens.   
Long-Term Financial Planning and Major Initiatives
Unassigned fund balance in the general fund has continued to grow for most of the past ten years. The 
current year resulted in an increase in the unassigned fund balance. The policy is to maintain an 
unassigned fund balance in the general fund that equals 75% of budgeted expenditures. After the fiscal 
year is closed, a recommendation is made to the City Council to transfer the excess amount to the capital 
improvement fund to accumulate funds for large capital items and grant matching funds.
The City Council has approved a number of capital projects to be done in FY26 in the Capital 
Improvement Fund. These projects consist of $1,175,000 for Heritage Park improvements, $1,300,000 for 
turfing infields at the Regional Park ball fields, $3,200,000 for building a new fire station, $2,000,000 for 
paving, $2,500,000 for stormwater projects and $1,900,000 for improvements to the industrial park at exit 
52. These will be funded by a combination of grant and local funds.
The City completed a strategic plan during the prior year. During February of each year, a planning 
meeting is held with the City Council and the department heads to discuss needs of each department and 
establish priorities for the coming year. The strategic plan will continue to guide the Council in setting
priorities for the next ten to twenty years.
Relevant Financial Policies
Revenue policies provide for the City to budget revenues conservatively so that the chance of a revenue 
shortage during the year is remote. The City will review annually all fees and charges to assure that they 
maintain their inflation-adjusted purchasing power. The City will make every effort to avoid becoming too 
dependent on one source of revenue in order to minimize serious fluctuation in any year. The City will 
consider market rates and rates of comparable cities in the region when changing tax rates, fees and charges.In 
this regard, the City will make every effort to maintain its favorable comparative position with other Tennessee 
cities which has contributed to our economic development success. A detailed multi-year revenue trend 
analysis is utilized to assist in the budget process.