athens tn acfr fy2021

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CITY OF ATHENS, TENNESSEE 
NOTES TO FINANCIAL STATEMENTS 
June 30, 2021 
Note 11. Implementation of Governmental Accounting Standards Board Pronouncement 
The City implemented Governmental Accounting Standards Board (GASB) Statement No. 84 
"Fiduciary Activities". The pronouncement establishes standards for the treatment of certain type 
activities and funds. In conjunction with the implementation of GASB Statement No. 84, the 
Internal School Funds (ISF) are reflected as a special revenue fund in the accompanying financial 
statements. In previous years, the City did not include the ISF in their financial statements based on 
their interpretation of the State of Tennessee guidance regarding ISF's. A restatement of $149,443 
is presented to reflect the ISF beginning fund balance/net position as follows: 
Governmental 
Government -
Funds Fund 
Wide Net 
Balance 
Position 
Previously reported, 6/30/20 
$ 27,455,212 
$ 53,329,601 
Restatement 
149,443 
149,443 
As restated, 7/1/20 
$ 27,604,655 
$ 53,479,044 
Note 12. Deferred Compensation 
The City and the Utilities Board offer their employees deferred compensation plans created in 
accordance with Internal Revenue Code Section 457. The plans, available to all employees, permit 
them to defer a portion of their salary until future years. The deferred compensation is not available 
to employees until termination, retirement, death or an unforeseeable emergency. 
Note 13. Tax Abatements 
The City of Athens has an agreement with McMinn County and the Industrial Development Board 
of McMinn County for a Payment in Lieu of Taxes (PILOT) program, as authorized under 
Tennessee Code Annotated 7-53. The program offers real and personal property tax abatements to 
entice new and expanding companies to select Athens as the target of their investment for purposes 
of economic development. 
The criteria for eligibility includes providing new capital investment and job growth in Athens. 
There are also provisions for retained jobs if certain criteria are met. Projects eligible for the 
abatement program include manufacturing companies, distribution centers, data center and service 
projects, research and development projects, and pollution control projects. The program provides 
for a 50% reduction in the real and personal property assessed values for a certain number of years 
depending on the level of investment and/or jobs created. There is also an option for a declining 
balance abatement for up to six years based on the same criteria, which provides for an abatement of 
80% in year one, 60% in year two, 40% in year three, and 20% in years four through six. 
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