athens tn acfr fy2021

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City of Athens, Tennessee 
Management's Discussion and Analysis 
June 30, 2021 
As of the end of the current fiscal year, the City of Athens' governmental funds reported combined ending 
fund balances of $34,691,340, an increase of $7,086,685 in comparison to the prior year. Approximately 
50.47% of this total amount ($17,507,197) constitutes unassigned fund balance, which is available for 
spending at the government's discretion. Pursuant to GASB Statement No. 54, the remainder of fund 
balance is classified as to: nonspendable -$220,640; restricted for a specific purpose by external constraint 
or enabling legislation -$3,062,283 (law enforcement - $120,313; City Schools - $4,050 for career ladder 
and $160,162 for stabilization reserve; School Construction Fund - $263,815; Cemetery Perpetual Care -
$287,015; Debt Service - $1,997,652; Internal School Fund student activities — 153,073; Drug Fund -
$76,203); committed for a specific purpose per action of the City Council - $6,862,190 (law enforcement -
$22,463; capital projects - $6,486,680; education capital projects - $24,247; School Construction Fund -
$313,210; Drug Fund - $15,590); or assigned — intended by the City to be used for a specific purpose -
$7,039,030 (education - $6,380,701; cafeteria operations - $658,329). 
The General Fund is the chief operating fund of the City of Athens. At the end of the current fiscal year, 
unassigned fund balance of the General Fund was $17,507,197. As a measure of the General Fund's 
liquidity, it may be useful to compare unassigned fund balance to total General Fund expenditures. 
Unassigned fund balance represents 142.09% of total fund expenditures, but represents 104.82% when 
compared to total fund expenditures and transfers to other funds (General Purpose School Fund, Debt 
Service Fund and Capital Improvement Fund). 
The fund balance of the City of Athens' General Fund increased by $3,868,303 during the current fiscal 
year. Revenues increased by $3,633,503 while expenditures decreased by $1,631,093 before transfers to 
other funds. Property taxes, local sales tax, state shared revenues and interest earnings increased, while 
state income tax decreased over the prior year. The transfer to the Athens City Schools increased $50,000, 
the debt service transfer increased $1,000,000 and the transfer to the Capital Projects Fund increased by 
$150,000. 
The fund balance of the General Purpose School Fund increased by $1,537,539. Much of this was due to 
increased funding from McMinn County and the State of Tennessee. 
The Capital Improvement Fund has a total fund balance of $6,486,680. The net decrease was $434,766. 
Capital items consisted of street improvements, traffic studies, Heritage Park and Eureka Trail 
improvements and renovations of the Public Works and City Hall. 
Proprietary funds. The City of Athens' 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 $44,653 for the Conference Center Fund, 
$2,884,501 for the Sanitation Fund, $5,097,856 for the Fleet Management Fund and $379,265 for the 
Employee Medical Benefits Fund. 
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