athens tn acfr fy2024

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CITY OF ATHENS, TENNESSEE
MANAGEMENT’S DISCUSSION AND ANALYSIS
JUNE 30, 2024
14
City of Athens
Capital Assets
Governmental Activities Business-type Activities Total
2024 2023 2024 2023 2024 2023 
Buildings and 
improvements $69,415,322 $22,175,585 $1,621,773 $1,600,723 $71,037,095 $23,776,308 
Infrastructure 10,925,272 10,366,076 - - 10,925,272 10,366,076 
Furniture and office 
equipment 9,305,278 9,032,482 863,607 863,607 10,168,885 9,896,089 
Machinery and 
equipment 6,924,794 7,180,768 745,286 745,286 7,670,080 7,926,054 
Land 3,212,757 3,221,556 34,500 34,500 3,247,257 3,256,056 
Construction in 
progress 4,472,308 45,411,153 - - 4,472,308 45,411,153 
$104,255,731 $97,387,620 $3,265,166 $3,244,116 $107,520,897 $100,631,736 
Additional information on the City’s capital assets can be found in Note 4 on A-40 to A-44 of this report.
Long-term debt. At the end of the current fiscal year, the City had a bond anticipation note outstanding
with a balance of $5,000,000. It is backed by the full faith and credit of the City. This short-term
financing will be converted to long term general obligation debt through the USDA for the same amount 
once the project is completed. These monies were used to construct a new Pre-K to fifth grade school 
building, resulting in four schools being combined into one. $34,859,825 is owed to the USDA for the 
majority of the funding for building the new school. The City also has a 2021 general obligation bond 
debt outstanding in the amount of $6,630,000. These funds were used for a new animal shelter, a fire 
training facility, street improvements related to the new school being constructed, public works offices,
and renovations to City Hall. The Athens Utilities Board has debt outstanding totaling $17,630,238 to be 
repaid by user fees and Board funds. In the event of default, the City is required to establish ad valorem 
taxes to repay the outstanding debt. Detailed information on long-term debt activity can be found in Note 
5 on pages A-45 to A-48 of this report.
State statutes do not limit the amount of general obligation bonded debt a governmental entity may issue.
Economic Factors and Next Year’s Budgets and Rates
The unemployment rate for the City is currently 4.6%, which is a decrease from the rate of 4.7% a year 
ago. The City’s rate is higher than the federal rate and the state rate.
The local option sales tax grew in excess of 8% beginning in May 2020 through June 30, 2023, and the 
state shared sales tax growth has exceeded the local rate. Both of these increased by less than 3% for the 
current year. Management has been conservative in estimating all revenues for 2024-2025. The property 
tax rate remained at $1.0078 for the 2024 taxes and the monthly residential refuse fee remained at $9.50.