athens tn acfr fy2022

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City of Athens, Tennessee

Management’s Discussion and Analysis
June 30, 2022

general obligation bond debt outstanding in the amount of $7,075,000. These funds will be used for a new
animal shelter, a fire training facility, street improvements related to the new school being constructed and
renovations to City Hall. The Athens Utilities Board has debt outstanding totaling $19,244,571 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 3 on
pages 41 to 44 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 4.9%, which is a decrease from the rate of 6.4%
a year ago. Athens’ rate is higher than the federal rate and the state rate.

The local option sales tax has grown in excess of 8% beginning in May, 2020 and the state shared sales tax
growth has exceeded the local rate. Management has been conservative in estimating all revenues for 2022-
2023. The property tax rate remained at $1.3476 for the 2,022 taxes and the monthly residential refuse fee
remained at $9.50. A 5% salary increase was budgeted for full time employees due to the increase in the
rate of inflation. American Rescue Plan funds in excess of $2,100,000 are expected to be received and these
funds will be used for capital improvements in the City.

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.

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