athens tn acfr fy2018 text edition

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City of Athens, Tennessee 
Management's Discussion and Analysis 
June 30, 2018 
As of the end of the current fiscal year, the City of Athens' governmental funds reported combined ending 
fund balances of $24,701,584, an increase of $3,558,767 in comparison to the prior year. Approximately 
47.4% of this total amount ($11,713,042) constitutes unassigned fund balance, which is available for 
spending at the government's discretion. Pursuant to GASB Statement No. 54, the remainder of fund 
balance is classified as to: nonspendable -$368,832; restricted for a specific purpose by external constraint 
or enabling legislation -$728,634 (law enforcement - $98,684; basic education - $259,863; cemetery 
perpetual care - $156,678; Drug Fund - $213,409); committed for a specific purpose per action of the City 
Council - $7,296,786 (law enforcement - $20,164; capital projects - $6,236,785; education capital projects -
$1,024,247; Drug Fund - $15,590); or assigned — intended by the City to be used for a specific purpose -
$4,594,290 (education - $4,285,730; cafeteria operations - $308,560). 
The General Fund is the chief operating fund of the City of Athens. At the end of the current fiscal year, 
unassigned fund balance of the General Fund was $11,713,042. As a measure of the General Fund's 
liquidity, it may be useful to compare unassigned fund balance to total General Fund expenditures. 
Unassigned fund balance represents 110.22% of total fund expenditures, but represents 87.29% when 
compared to total fund expenditures and transfers to other funds (General Purpose School Fund and Capital 
Improvement Fund). 
The fund balance of the City of Athens' General Fund increased by $2,495,347 during the current fiscal 
year. Revenues increased by $299,258 while expenditures decreased by $40,118 before transfers to other 
funds. Property taxes, local sales tax and interest earnings increased, while state income tax and court fines 
decreased over the prior year. The transfer to the Athens City Schools remained consistent with the prior 
year. The transfer to the Debt Service Fund decreased by $790,000 and the transfer to the Capital Projects 
Fund decreased by $730,000. 
The fund balance of the General Purpose School Fund increased by $653,289. Much of this was due to 
increased finding from the State Basic Education Program. 
The Capital Improvement Fund has a total fund balance of $6,236,785. The net increase was $327,690 due 
to the $370,000 transfer from the General Fund. Capital items consisted of sidewalk improvements, 
recreation projects, Denso Eco Park and renovations of the Municipal Building. The majority of the items 
were funded by grants and proceeds from the sale of electricity generated by the City-owned solar panels. 
Proprietary funds. The City of Athens' proprietary funds provide the same type of information in the 
government-wide financial statements, but with more detail. 
Unrestricted net position at the end of the year was $23,006 for the Conference Center Fund, $2,307,794 for 
the Sanitation Fund, $3,842,980 for the Fleet Management Fund and $364,670 for the Employee Medical 
Benefits Fund. 
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