athens tn acfr fy2024

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CITY OF ATHENS, TENNESSEE
MANAGEMENT’S DISCUSSION AND ANALYSIS
JUNE 30, 2024
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The fund balance of the General Obligation Bond Fund decreased by $2,927,308. Bonds were issued in 
2021, and these funds were used in the current year for construction of the new animal shelter, fire 
training tower and road work in the area around the new city school.  
The Debt Service Fund for school projects only increased $458 for the year but was impacted by the 
proceeds of permanent financing of $30,000,000 to repay a corresponding amount for temporary 
financing during construction of the new school.
The Capital Improvement Fund increase was $2,681,041, primarily due to a $2,900,000 transfer from the 
General Fund. Capital items consisted primarily of new tennis/pickleball courts at Ingleside, Heritage 
Park renovations, City Hall roof, and stormwater engineering expenditures of the Public Works offices, 
building a fire training tower, and improvements to recreation facilities.
The School Construction Fund increased by $1,789,290 due to approximately $5,000,000 in permanent 
financing received to complete the new school. Final construction work was completed after year end. 
Proprietary funds. The City’s 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 amounted to $36,444 for the Conference Center Fund, 
$3,268,397 for the Sanitation Fund, $6,689,825 for the Fleet Management Fund, and $290,021 for the 
Employee Medical Benefits Fund.
General Fund Budgetary Highlights
Differences in the original budget and the final amended budget for revenues were $1,272,000 and 
consisted of increases in local sales tax, grant funds from FEMA and the State of Tennessee for police 
and fire, interest income, insurance recoveries, and third-party contributions. Differences between the 
original budget and the final amended budgeted expenditures, including transfers, were $4,372,000 and 
are summarized below:
 $1,727,500 for paving, salaries and related benefits, and engineering fees in public works.
 $33,000 for adding a full-time position at the new animal shelter for animal control.
 $181,500 for salary and related benefits, program costs, liability insurance, July 4th fireworks,
and building repairs and maintenance in parks and recreation.
 $706,000 for salaries and related benefits including two additional SRO’s, liability insurance, and
fixed assets funded by state grants in fire and police.
 $224,000 for miscellaneous line items in general government departments. These consisted
primarily of building repairs at City Hall, liability insurance, and salary and benefit increases.
 $1,500,000 increase in transfers due to transfers to the Capital Improvement Fund, which was
related to excess fund balance.