2024 05 21 City Council Meeting Packet 1

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CITY OF ATHENS, TENNESSEE
Narrative on Financial Analysis
April, 2024

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 $1,122,000 more through April this year, primarily because we
received $225,000 for the SRO grant, $98,000 for FEMA grant, $307,000 more in interest
revenue, $67,000 more in property tax and $297,000 more in sales tax. As a percentage we
collected .53% more 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 $1,043,000 more than this time last year,
showing 80.23% this year. The variance is due to the implementation of the class/comp study

in September, the fund balance transfer to the capital projects fund not being made yet in the
current year and the paving in the current year.

Sanitation
Revenues and expenditures are comparable to the prior year.

Please let me know if | can provide additional information.

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