athens tn acfr fy2020

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City of Athens, Tennessee

Management’s Discussion and Analysis
June 30, 2020

Key elements of this increase in net position are as follows:

Governmental Activities Business-type Activities Total
2020 2019 2020 2019 2020 2019
Revenues:
Program revenues:
Charges for services $628,674 $766,585 $993,111 $1,007,829 $1,621,785 $1,774,414
Operating grants and contributions 4,420,432 4,201,316 - - 4,420,432 4,201,316
Capital grants and contributions 786,445 1,459,594 - - 786,445 1,459,594
General revenues:
Property taxes 8,516,240 8,194,198 - - 8,516,240 8,194,198
Other taxes 10,062,469 7,457,073 - - 10,062,469 7,457,073
Intergovernmental revenues not
restricted to specific programs 11,475,082 11,078,464 - - 11,475,082 11,078,464
Other 778,014 589,374 49,042 51,658 827,056 641,032
Total revenues 36,667,356 33,746,604 1,042,153 1,059,487 37,709,509 34,806,091
Expenses:
General government 4,070,588 4,189,942 - - 4,070,588 4,189,942
Public safety 5,259,541 4,571,553 - - 5,259,541 4,571,553
Highways and streets 4,701,837 2,478,087 - - 4,701,837 2,478,087
Culture and recreation 1,402,284 1,469,977 - - 1,402,284 1,469,977
Education 17,604,997 17,406,885 - - 17,604,997 17,406,885
Health and welfare 172,629 153,093 - - 172,629 153,093
Conference center - - 78,597 77,790 78,597 77,790
Sanitation - - 880,695 827,025 880,695 827,025
Total expenses 33,211,876 30,269,537 959,292 904,815 34,171,168 31,174,352
Change in net position 3,455,480 3,477,067 82,861 154,672 3,538,341 3,631,739
Net position, beginning of year 49,874,121 46,397,054 3,553,857 3,399,185 53,427,978 49,796,239
Net position, end of year $53,329,601 $49,874,121 $3,636,718 $3,553,857 $56,966,319 $53,427,978

Financial Analysis of the City’s Funds

As noted earlier, the City of Athens’ uses fund accounting to ensure and demonstrate compliance with
finance-related legal requirements.

Governmental funds. The focus of the City of Athens’ governmental funds is to provide information on
near-term inflows, outflows, and balances of spendable resources. Such information is useful in assessing
the City of Athens’ financing requirements. The unassigned fund balance may serve as a useful measure of
a government’s net resources available at the end of the fiscal year for future unforeseen emergencies.

As of the end of the current fiscal year, the City of Athens’ governmental funds reported combined ending

fund balances of $27,455,212, an increase of $2,452,740 in comparison to the prior year. Approximately
49.68% of this total amount ($13,640,768) constitutes unassigned fund balance, which is available for

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