2025 2 18 Regular Session Packet 1

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CITY OF ATHENS, TENNESSEE
Narrative on Financial Analysis
January, 2025

This narrative will discuss various aspects of the financial data presented to the city council for
the above-referenced month. July, and 2 or 3 subsequent months will be above the normal
percentages, primarily on the expenditure side because of several factors, as discussed below.

General Fund

Overall, we collected about $534,000 more in January this year, primarily because of property

taxes, AUB in lieu of taxes and the local sales tax. As a percentage we collected .33% less than
the budgeted revenues for last year.

PLEASE NOTE: On the financial spreadsheet that accompanies this report, at the top you will
see General Fund revenues. | have only broken out major sources of revenue such as property
taxes and sales taxes. The “total revenues” amount includes smaller items that | did not show

in detail. A complete listing of all revenue accounts can be found on your computer-generated
report titled “Statement of Actual and Estimated Revenues”.

Expenditures are always going to show high in the early budget months, primarily due to the
retirement contribution being paid in July and the fleet management transfer.

Another factor that makes the percentage spent look high is the fact that we set up annual
purchase orders for known or recurring monthly expenses. For example, in the City Council
division we pay for the monthly taping of council meetings. To avoid having to prepare a
purchase order every month, we prepare one for the entire year and pay off of it monthly. This
total PO is included in the “expended & encumbered” percentage.

Expenditures and encumbrances for this year are $1,373,000 more than this time last year,
showing 77.26% this year. The variance is due primarily to the $2,000,000 for paving that was
encumbered in July of last year, the fund balance transfer of $1,700,000 in the current year,

and increases in costs due to the implementation of the class/comp study beginning in October
last year and the COLA and longevity for the current year.

Sanitation

Revenues are comparable to the prior year. Expenditures are higher due to the
implementation of the class/comp study in October last year, longevity paid in November this
year, the COLA for the current year, the related employee benefits, the cost for the routing

software and approximately $44,000 in the current year being spent on dumpsters and
household totes.

Please let me know if | can provide additional information.

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