athens tn acfr fy2019 text edition

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City of Athens, Tennessee 
Management's Discussion and Analysis 
June 30, 2019 
55.8% of this total amount ($13,947,862) constitutes unassigned fund balance, which is available for 
spending at the government's discretion. Pursuant to GASB Statement No. 54, the remainder of fund 
balance is classified as to: nonspendable -$212,968; restricted for a specific purpose by external constraint 
or enabling legislation -$480,970 (law enforcement - $89,567; basic education - $38,925; cemetery 
perpetual care - $230,173; Drug Fund - $122,305); committed for a specific purpose per action of the City 
Council - $6,311,583 (law enforcement - $20,782; capital projects - $5,250,964; education capital projects -
$1,024,247; Drug Fund - $15,590); or assigned — intended by the City to be used for a specific purpose -
$4,049,095 (education - $3,817,647; cafeteria operations - $231,448). 
The General Fund is the chief operating fund of the City of Athens. At the end of the current fiscal year, 
unassigned fund balance of the General Fund was $13,947,862. As a measure of the General Fund's 
liquidity, it may be useful to compare unassigned fund balance to total General Fund expenditures. 
Unassigned fund balance represents 118.12% of total fund expenditures, but represents 97.58% when 
compared to total fund expenditures and transfers to other funds (General Purpose School Fund and Capital 
Improvement Fund). 
The fund balance of the City of Athens' General Fund increased by $2,225,002 during the current fiscal 
year. Revenues increased by $601,447 while expenditures increased by $1,181,386 before transfers to other 
funds. Property taxes, local sales tax and interest earnings increased, while state income tax and court fines 
decreased over the prior year. The transfer to the Athens City Schools remained consistent with the prior 
year. The transfer to the Capital Projects Fund decreased by $320,000. 
The fund balance of the General Purpose School Fund decreased by $831,880. Much of this was due to 
salaries and benefits previously funded by grants in the Federal Projects Fund included in this find. 
The Capital Improvement Fund has a total fund balance of $5,250,964. The net decrease was $985,821 due 
to the $370,000 transfer from the General Fund. Capital items consisted of sidewalk improvements, 
recreation projects, funding for building a workforce development center, Denso Eco Park and renovations 
of the Municipal Building. Some of the items were funded by grants and proceeds from the sale of 
electricity generated by the City-owned solar panels. 
Proprietary funds. The City of Athens' proprietary funds provide the same type of information in the 
government-wide fmancial statements, but with more detail. 
Unrestricted net position at the end of the year amounted to $37,535 for the Conference Center Fund, 
$2,616,672 for the Sanitation Fund, $3,967,955 for the Fleet Management Fund and $372,810 for the 
Employee Medical Benefits Fund. 
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