2025 12 08 Work Session Packet

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RESOLUTION NO. 2025-32  
 
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A RESOLUTION AUTHORIZING THE DISTRIBUTION OF THE ATHENS UTILITIES 
BOARD’S ELECTRICAL IN LIEU OF TAX PAYMENTS  FOR FISCAL YEAR 
2025/2026.  
  
 WHEREAS, the Legislature for the State of Tennessee enacted Public Chapter No. 84 
during its 1987 session, which Act provided for a uniform formula to pay tax equivalents on 
electrical systems to the respective cities and counties served by the Athens Utilities B oard in 
accordance with the respective property tax rates set by said governing bodies; and 
 
 WHEREAS, in Section 5(d) of said Act, the legislative body of the municipality and/or 
governing agency agrees that the electric system subject to said Act, is to pass a Resolution 
outlining the amount to be paid to each respective jurisdiction served by the utilities, using the 
current tax rate by the respective governing body.  
 
 NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Athens, 
Tennessee, as follows: 
 
That the recitals above are true and accurate and form a part of this Resolution; and 
 
That meeting in regular session this 16th day of December, 2025, that the Athens Utilities 
Board is hereby authorized, directed and empowered to distribute its electrical in lieu of tax 
payments (tax   equivalent) to the City of Athens, Tennessee, for the City of Athens and McMinn 
County, the sum of $863,580.63 in accordance with the following schedule for the fiscal year 
2025/26 as follows: 
   McMinn - $194,305.64 
   Athens  - $669,274.99 
 
or a total amount of $863,580.63. 
 
The City of Athens will make distributions to McMinn County as required by law. 
 
BE IT FURTHER RESOLVED  that the Athens Utilities Board will distribute to the 
following municipalities and Monroe County, which it serves and owns property, in accordance 
with the following schedules: 
   Englewood - $  6,705.04 
   Niota  - $  7,665.06 
   Monroe - $     969.97 
 
or a total amount of $15,340.07. 
 
BE IT FURTHER RESOLVED that the Athens Utilities Board will pay the sum to the 
City of Athens in monthly installments beginning the 20
th day of July 2025, and the same day 
of each month thereafter for this fiscal year. 
 
BE IT FURTHER RESOLVED  by the Athens City Council that this resolution shall 
take effect immediately from and after its passage, the public welfare requiring it. 
 
ON MOTION BY _______________________________________________________,  
 
SECONDED BY ________________________________________________________,  
 
said Resolution was approved by roll call vote.  
 
 
ATTEST:   Larry Eaton, Mayor 
    
    
Randall Dowling, City Manager    
    
APPROVED AS TO FORM:    
    
    
Christopher M. Caldwell, City Attorney    
 
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