athens tn acfr fy2018 text edition

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CITY OF ATHENS, TENNESSEE 
NOTES TO FINANCIAL STATEMENTS 
June 30, 2018 
Note 14. Contingencies 
The Athens Utilities Board has debt issues with outstanding balances totaling $25,737,738, 
representing debt issued by the City where the Utilities Board has assumed all responsibility through 
resolution. This long-term debt is reported in the Athens Utilities Board financial statements. The 
debt service is to be paid through user fees and Board funds, but the City is required to establish ad 
valorem taxes under each debt issue if Utilities Board funds are not sufficient to service the debts. 
The City is subject to lawsuits and claims arising out of its business nature. Management, after 
review and consultation with counsel, believes that any liability, not covered by insurance, from 
these lawsuits would not materially affect the financial position of the City. 
The City has received several federal and state grants for specific purposes which are subject to 
review by the grantor agencies. Such reviews could lead to a request for reimbursement to the 
grantor agencies for any expenditures disallowed under the terms of the grants. Management 
believes that such disallowed costs, if any, would be immaterial. 
Note 15. Risk Management 
The City is exposed to various risks of loss to torts; theft ot damage to and destruction of assets; 
errors and omissions; injuries to employees; and natural disasters for which the government carries 
commercial insurance or participates in the Public Entity Partners Risk Management Pool. The 
Public Entity Partners Risk Management Pool is a public entity risk pool which provides coverage 
for a variety of risks to Tennessee governments. The City does not retain the risk of loss under 
coverages with the pool. There have been no significant reductions in insurance coverage and 
settlement amounts have not exceeded insurance coverage for the current year or the three prior 
years. 
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