athens tn acfr fy2018 text edition

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CITY OF ATHENS, TENNESSEE 
NOTES TO FINANCIAL STATEMENTS 
June 30, 2018 
Note 12. Deferred Compensation 
The City and the Utilities Board offer their employees deferred compensation plans created in 
accordance with Internal Revenue Code Section 457. The plans, available to all employees, 
permit them to defer a portion of their salary until future years. The deferred compensation is not 
available to employees until termination, retirement, death or unforeseeable emergency. 
Note 13. Tax Abatements 
The City of Athens has an agreement with McMinn County and the Industrial Development Board 
of McMinn County for a Payment in Lieu of Taxes (PILOT) program, as authorized under 
Tennessee Code Annotated (TCA) 7-53. The program offers real and personal property tax 
abatements to entice new and expanding companies to select Athens as the target of their 
investment for purposes of economic development. 
The criteria for eligibility includes providing new capital investment and job growth in Athens. 
There are also provisions for retained jobs if certain criteria are met. Projects eligible for the 
abatement program include manufacturing companies, distribution centers, data center and service 
projects, research and development projects, and pollution control projects. The maximum length 
of any PILOT project is 12 years. The program provides for a 50% reduction in the real and 
personal property assessed values for a certain number of years depending on the level of 
investment and/or jobs created. There is also an option for a declining balance abatement for up 
to six years based on the same criteria, which provides for an abatement of 80% in year one, 60% 
in year two, 40% in year three, and 20% in years four through six. 
Abatements may be recaptured in any year whereby the criteria are not met. Each agreement 
contains the methodology for calculating the percentage of repayment. The recovery payment is 
due with the annual report of the abatement. 
The City has tax abatement agreements with four entities as of June 30, 2018: 
Percentage of Taxes 
Abated during 
the Year 
Amount of Taxes 
Abated during 
the Year 
E&E Manufacturing 
80% 
$ 	
65,144 
E&E Manufacturing 
60 
39,695 
Maxwell Industries 
60 
6,624 
Denso Tennessee, Inc. 
50 
36,011 
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