athens tn acfr fy2022

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CITY OF ATHENS, TENNESSEE
NOTES TO FINANCIAL STATEMENTS
June 30, 2022

Note 3. Long-Term Debt and Other Long-Term Liabilities

The City has approved $40,000,000 for the School Consolidation Building Program discussed in
Note 13. The City has arranged for short-term construction financing through a General Obligation
Anticipation Note, Series 2020, with Regions Capital Advantage, Inc. The loan is being disbursed
on a monthly basis with variable interest based on LIBOR or Prime Index calculation. During 2022,
the calculation yielded interest rates from 0.99% - 1.61%. Interest will be due semi-annually with
principal due when permanent financing is utilized which is expected to be December 2024.
Permanent financing will be through a $40,000,000 USDA Community Facilities Loan. The 40 year
loan will bear interest at 2.125% - 2.250%. For disclosure purposes, the bond anticipation note will
be disclosed on the payment paid maturity terms of the permanent financing for the amount drawn.

During 2022, the City authorized the issuance of General Obligation Bonds, Series 2021 of
$7,350,000 to facilitate the renovations at city hall and traffic enhancements within the city. Bond
issuance cost of $143,353 were incurred related to this issue and expensed in the General Obligation

Bond Fund.

Primary government long-term debt at June 30, 2022, consisted of the following:

Balance Due within
6/30/22 one year

Governmental Activities
General Obligation Anticipation Note, Series 2020; dated

December 22, 2020; 0.99% - 1.61%; interest due semi-
annually $ 23,803,325 $ 991,520

General Obligation Bonds, Series 2021; dated October 15,
2021; 2.00% - 3.00%; principal due annually on

June 1; interest due semi-annually 7,075,000 220,000
Total long-term debt — governmental activities 30,878,325 1,211,520
Unamortized bond premium 297.289 -
Total long-term debt — primary government $31,175,614 § 1,211,520

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