athens tn annual budget fy2025 2026

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FY 2025-26 BUDGET OVERVIEW 
 
Outcome of the 2025 Strategic Summit 
The 2025 Strategic Summit was held on February 21, 2025 at the Tennessee College of Applied Technology 
and facilitated by the Southeast Tennessee Development District (SETD) to discuss and outline the general 
goals for the upcoming fiscal year. The top ten priorities that emerged from the daylong session were: 
 
1) Install artificial turf on the five infields at Regional Park to enhance sports tourism, attract more regional 
and state-wide sports tournaments, and increase local hotel/motel taxes (included in budget).  
2) Design and construct a new F ire Station #3 on property previously purchased on Elizabeth Street 
(included in budget).  
3) Add an additional full-time traffic officer for the Police Department. 
4) Increase the part-time IT Tech to full-time status.  
5) Build a homeless shelter. 
6) Discuss the feasibility of contracting with and housing an EMS ambulance/crew at Fire Station #2 to 
improve medical emergency response time. 
7) Add an additional full-time Fire Marshal position for the Fire Department.  
8) Complete the Southeast Tennessee Trade & Conference Center (plan included in budget).  
9) Replace the pool at Ingleside Park. 
10) Construct a new amphitheater at Market Park.  
 
Budget Overview 
The city’s all -fund proposed budget totals $ 40,778,100 ($43,458,000 for all funds less transfers of 
$2,679,900), an increase of $9,460,797 or 30.2% from the previous fiscal year. The proposed budget contains 
a 3% cost of living allowance effective July 1, 2025 at a cost of $275,000 and a longevity allowance of $100 
per year of service with a three-year vesting schedule at a cost of $100,000. The city will retain its employee 
health care plan with Blue Cross/Blue Shield using the state plan with minimal plan changes. The proposed 
budget does not include any new positions , does not anticipate a property tax increase, but does anticipate 
increases in certain fees in various departments as outlined in the Fee Schedule section. It needs to be noted 
that the property tax revenue experienced a $400,000 decrease due to state property revaluation. The entire 
budget, which is prepared on a cash basis of accounting, is detailed by Fund as follows:  
 
General Fund 
The General Fund totals $22,306,000, a decrease of $1,144,000 in expenditures or (4.9%) from the previous 
fiscal year. The budget priorities of this Fund are listed in its budget sections.   
 
Special Revenue Funds 
The Special Revenue Funds consist of the Drug Fund and the Hotel/Motel Tax Fund. The Drug Fund’s 
expenses total $35,000, an increase of $1,000 or 2.9% from the previous fiscal year. The Hotel/Motel Tax 
Fund’s expenses total $563,300, an increase of $153,300 or 37.4% from the previous fiscal year. The budget 
priorities of these Funds are listed in their budget sections.  
 
Debt Service Funds 
The Debt Service Fund consists of two forms of debt, the USDA Community Facilities Loan Fund and the 
General Obligation Bond, Series 2021 Fund. The USDA Community Facilities Loan Fund’s expenses total 
$1,529,000, a decrease of $5,286,000 or (77.6%) from the previous fiscal year. The General Obligation 
Bond, Series 2021 Fund’s expenses total $381,500, a decrease of $4,500 or (1.2%) from the previous fiscal 
year. The budget priorities of these Funds are listed in their budget sections.  
 
 
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