athens tn acfr fy2024

Unverified text extraction. Check the original page for numbers, names, and layout.

iii 
Local Economy 
 
The City of Athens  enjoys a favorable economic environment, and local indicators point to continued 
stability. Local sales tax and state shared sales tax revenues continue to increase,  and the unemployment 
rate is 4.6% as of June 2024. Building permits were issued in FY24 for projects exceeding $50,000,000 in 
value. 7Brew Coffee, Planet Fitness, and Tidal Wave Auto Spa are new businesses that opened during the 
year. 
 
One area that Athens has lacked in development since 2008 has been the construction of single -family 
homes. Over the past two years, a total of more than 150 homes have been constructed  in Athens.  
Additional residential sites continue to be developed as well. 
 
Major industries located within the City include several automotive parts suppliers, manufacturers of 
electrical components and plastics, and a producer of dairy products.  Denso, the City’s largest employer, 
added warehouse space during FY24 and recently announced a $100,000,000 expansion to add over 
50,000 square feet for increased production. It is expected to add 200 new jobs.  
 
Athens and McMinn County have jointly participated in a tax abatement program and tax increment 
financing (TIF) for new and existing businesses. Capital investment and increased employment are two of 
the primary reasons for this program. Capital investment results in increased property taxes  and the 
additional employees result in individuals having the means to spend dollars locally, helping the entire 
local economy. A TIF has been approved for a project that will bring new retailers and an additional hotel 
to the City. 
 
Long-Term Financial Planning and Major Initiatives 
 
Unassigned fund balance in the general fund ha s continued to grow for most of the past ten years. The 
current year resulted in a decrease in the unassigned fund balance . The policy is to maintain an 
unassigned fund balance in the general fund that equals 75% of budgeted expenditures. After the fiscal 
year is closed, a recommendation is made to the city council to transfer the excess amount to the capital 
improvement fund to accumulate funds for large capital items and grant matching funds.  
 
In August of 2019, the voters in Athens approved a $.75 increase in the local option sales tax.  The city 
council designated the first $1,000,000 collected annually to go toward the school building project and the 
city schools will contribute $700,000 annually from savings due to the consolidation of four schools.  The 
council has approved borrowing up to $40,000,000 to construct the new elementary school on the 
property at City Park. Bids were approved in early 2021 and construction began on the facility that will 
hold all pre -k to fifth grade students for the City Schools. The building opened in August  of 2023. City 
Park Elementary was demolished as it was on the site used for the new school , and the t hree remaining 
school buildings were turned over to the City. Even though the new building was opened in August  of 
2023, construction has continued to be done on the exterior areas and athletic facilities, and work was 
completed in November 2024.  
 
The City issued $7,350,000 in bonds in October  2021 for road improvements around the new school, 
renovations to the public works facility, renovations to City Hall, a fire training tower , and a new animal 
shelter. All of the projects have been completed except for City Hall renovations. 
 
The City completed a strategic plan during  the prior year. During February of each year, a planning 
meeting is held with the c ity council and the department heads to discuss needs of each department and 
establish priorities for the coming year.  The strategic plan will continue to guide the c ouncil in setting  
priorities for the next ten to 20 years.