athens tn acfr fy2020

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City of Athens, Tennessee
Management’s Discussion and Analysis

June 30, 2020

$420,841 in highways and streets due to vacancies and related employee benefits,
traffic signals not installed prior to year end, traffic signal loop repairs, paving less
than the amount budgeted and lower fuel costs.

$130,729 in parks and recreation primarily due to less seasonal employees and
fewer programs being offered beginning in March.

$34,282 due to a vacancy for part of the year 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, 2020, was $21,821,335 (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.

City of Athens
Capital Assets
2020 2019 2020 2019 2020 2019

Buildings and improvements $22,104,697 $22,030,209 $1,517,930 $1,517,930 $23,622,627 $23,548,139
Infrastructure 10,164,759 10,164,759 - - 10,164,759 10,164,759
Furniture and office equipment 4,577,973 4,365,510 29,864 29,864 4,607,837 4,395,374
Machinery and equipment 9,219,709 9,182,513 1,705,006 1,705,006 10,924,715 10,887,519
Land 3,221,556 3,221,556 34,500 34,500 3,256,056 3,256,056
Construction in progress 1,497,790 239,523 - - 1,497,790 239,523
$50,786,484 $49,204,070 $3,287,300 $3,287,300 $54,073,784 $52,491,370

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 no bonded debt outstanding.
The Athens Utilities Board has debt outstanding totaling $22,507,834 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 41-42 of this report.

State statutes do not limit the amount of general obligation bonded debt a governmental entity may issue.