athens tn acfr fy2022

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City of Athens, Tennessee

Management’s Discussion and Analysis
June 30, 2022

$985,518 in highways and streets due to vacancies and related employee benefits,
traffic signals not installed prior to year end, traffic signal loop repairs and annual
paving not getting done before year end.

$119,025 in parks and recreation primarily due to less seasonal employees and
several maintenance projects not completed prior to year end.

$10,939 due to multiple line items being under budget in animal control.

Capital Asset and Debt Administration

Capital assets. The City of Athens’ investment in capital assets for its governmental and business-type
fund activities as of June 30, 2022, was $50,339,760 (net of accumulated depreciation). This investment in
capital assets includes land, buildings, other improvements, equipment, and infrastructure.

Major capital asset events during the current fiscal year consisted primarily of the purchase of machinery
and equipment for the various city departments and school construction.

City of Athens
Capital Assets
Governmental Activities Business-type Activities Total
2022 2021 2022 2021 2022 2021

Buildings and improvements $23,707,469 $22,321,354 $1,517,930 $1,517,930 $25,225,399 $23,839,284
Infrastructure 10,379,902 10,258,178 - - 10,379,902 10,258,178
Furniture and office equipment 8,466,285 5,766,360 29,864 29,864 8,496,149 5,796,224
Machinery and equipment 7,104,009 8,387,171 1,678,915 1,748,771 8,782,924 10,135,942
Land 3,221,556 3,221,556 34,500 34,500 3,256,056 3,256,056
Construction in progress 26,633,590 7,627,837 - - 26,633,590 7,627,837

$79,512,811 $57,582,456 $3,261,209 $3,331,065 $82,774,020 $60,913,521

Additional information on the City of Athens’ capital assets can be found in Note 2 on pages 37-40 of this
report.

Long-term debt. At the end of the current fiscal year, the City of Athens had a bond anticipation note
outstanding with a balance of $23,803,325. It is backed by the full faith and credit of the City. This short
term financing will be converted to long term general obligation debt through the USDA in an amount not
to exceed $40,000,000 once the project is completed. These monies are being used to construct a new Pre-
K to 5" grade school building, resulting in four schools being combined into one. The City also has a 2021

B-9