Mayor & Commission Meetings

The meeting will be streamed live and available on-demand through YouTube (www.youtube.com/accgov), the YouTube app, and www.accgov.com/videos, as well as on- demand through the ACCGov Roku channel. WORK SESSION AGENDA UNIFIED GOVERNMENT OF ATHENS-CLARKE COUNTY, GEORGIA Thursday, April 16, 2026 – 1:00 PM Planning Auditorium REVISED I. Call to Order (1:00 p.m.) Mayor pro-tem Dexter Fisher II. Items for General Information A. Presentation from External Financial Auditors ............................................ Rushton Rushton III. Items for Future Consideration B. North Downtown Athens Development Phase .................................... Shelia Chrisp 3-4 Master Plan Update - REVISED Athens Housing Authority IV. Adjourn NOTE: All reports are draft. No final action is taken at this work session. The Work Session is open to the public; however, public comments are not received.  Presentation of Audit Results For the fiscal year ended June 30, 2025 April 16, 2026  Independent Auditor’s Report – Pages 9-11 Unmodified Opinion In our opinion, the financial statements present fairly, in all material respects, the financial position of Athens-Clarke County, Georgia, as of June 30, 2025, and the respective changes in financial position and, where applicable, cash flows for the year then ended. Auditing Standards We audited the Government’s financial statements in accordance with auditing standards generally accepted in the United States of America and Government Auditing Standards issued by the Comptroller General of the United States. Athens-Clarke County’s Responsibilities The financial statements are the responsibility of Athens-Clarke County’s management. Rushton’s Responsibilities As independent auditors for Athens-Clarke County, our responsibility is to express opinions on the fair presentation of the financial statements. 2  Report on Internal Control, Compliance, and Other Matters In accordance with Government Auditing Standards, we have issued our report on our consideration of Athens-Clarke County, Georgia’s internal controls and our tests of compliance. This report describes the scope of our testing of internal control and compliance, and the results of that testing, but is not intended to provide an opinion on the internal control or compliance. No material weaknesses and no significant deficiencies were noted in the internal controls of Athens-Clarke County, Georgia. No instances of material noncompliance or other matters that are required to be reported were noted. 3  Report on Compliance and Internal Controls over Major Programs In accordance with the Uniform Guidance, we have issued our report on our consideration of Athens-Clarke County, Georgia’s compliance with requirements applicable to each major program and on internal control over compliance. This report describes the scope of our testing of compliance requirements and internal controls over major programs, and the results of that testing. We are required to express an opinion on the Government’s compliance with requirements; our opinion is unmodified. This report is not intended to provide an opinion on the internal control. No material weaknesses or significant deficiencies were noted in the internal controls of Athens-Clarke County, Georgia over the compliance requirements applicable to the major programs. 4  Required Communications Auditor’s Responsibilities ◼ To plan and perform the audit to obtain reasonable, rather than absolute, assurance that the financial statements are free of material misstatements ◼ To examine, on a test basis, evidence supporting the amounts and disclosures in the financial statements ◼ To assess the accounting principals used and significant estimates made by management, as well as evaluate the overall financial statement presentation We believe our audit accomplishes these objectives 5  Required Communications Accounting Policies ◼ The significant accounting policies are described in Note I. to the financial statements ◼ Athens-Clarke County implemented GASB Statement No. 101, Compensated Absences, during the current fiscal year. Accounting Estimates ◼ Estimates are an integral part of financial statement preparation by management. Most sensitive estimates: ◼ Allowance for uncollectible property taxes and utility billings ◼ Life expectancy of capital assets for depreciation and amortization ◼ Pension and OPEB actuarial assumptions and measurements ◼ Costs for landfill closure and post-closure care 6  Required Communications Corrected Audit Adjustments ◼ Audit adjustments were discussed and approved by management ◼ Adjustments were provided to and recorded by management Uncorrected Audit Adjustments ◼ Schedule of uncorrected adjustments were provided to and approved by management ◼ The adjustments were evaluated and determined to be quantitatively and qualitatively immaterial, both individually and in the aggregate, to the financial statements 7  Required Communications Disagreements with Management ◼ We are pleased to report no disagreements with management arose during the course of our audit Difficulties Encountered in Performing the Audit ◼ We encountered no difficulties in dealing with management in performing and completing our audit Management Representations ◼ We have requested and received written representations from management relating to the completeness and accuracy of the information included in the financial statements and other information requested by us during the audit Management Consultations with Other Independent Accountants ◼ We are not aware of any consultations management had with other accountants about accounting or auditing matters 8  Required Communications Other Audit Findings or Issues ◼ We generally discuss a variety of matters, including the application of accounting principles and auditing standards, with management each year prior to retention as the County’s auditors. However, these discussions occurred in the normal course of our professional relationship and our responses were not a condition to our retention. 9  Trend Analysis of Fund Balance as a Percentage of Expenditures and Transfers General Fund Balance as a Percent of Total Expenditures and Assignments of Transfers Out Fund Balance: 40% Restricted, 8% Committed, Use of Fund Balance 35% 6% Assigned for FY 2026 Budget $4.1 Million 30% Reserves (Unassigned) 8% 2% 25% 4% 5% 32% 32% 20% 25% 22% 16.67 % 15% Fiscal Policy Minimum 23% 22% Unassigned 10% 5% 0% FY2020 FY2021 FY2022 FY2023 FY2024 FY2025 10  General Fund Budget to Actual Results – Fiscal Year 2025 Budget Actual Variance Revenue $ 184,032,675 $ 191,537,376 $ 7,504,701 Expenditures 186,690,786 181,901,229 (4,789,557) Net Transfers (12,448,297) (12,441,498) 6,799 Proceeds from sale of assets 20,000 22,257 2,257 Net Change (15,086,408) (2,783,094) 12,303,314 Budgeted Fund Balance 15,086,408 - (15,086,408) Beginning Fund Balance - 57,138,764 57,138,764 Ending Fund Balance $ - $ 54,355,670 $ 54,355,670 General Fund revenues were 4.1% more than the final budget. General Fund expenditures for fiscal year 2025 were $181.9 million, 97.4% of the final budget. Personal services were $900 thousand (0.7%) less than budget. Operating and indirect expenditures were $4.6 million (9.0%) below budget. 11  Trend Analysis of General Fund Revenue by Source General Fund Revenue by Source 100% 13.7% 12.4% 14.2% 15.2% 14.7% 14.7% 90% 80% 17.6% 15.5% 15.1% 14.6% 18.4% 17.3% 70% Other Revenue 19.4% 60% 18.8% 19.4% 20.9% 20.6% 20.3% Other Taxes 50% 40% Sales Taxes 30% 49.1% 48.1% 49.2% 49.2% 49.9% 51.7% Property Taxes 20% 10% 0% FY2020 FY2021 FY2022 FY2023 FY2024 FY2025 12  Trend Analysis of General Fund Expenditures by Function General Fund Expenses by Function 100% 3.0% Transfers Out 4.8% 5.3% 3.7% 9.2% 9.1% 2.7% 3.3% 13.6% 90% 3.0% 3.2% Housing & 10.4% 11.2% 10.8% 3.0% Development 3.2% 10.7% 10.9% Public Works 80% 1.2% 1.1% 10.2% 7.4% 7.1% 1.0% 0.3% 7.7% 7.2% 0.8% 6.9% Health & Welfare 70% 7.9% 7.3% 7.3% 6.7% 1.4% 7.0% 8.4% Culture & Recreation 3.6% 1.4% 6.6% 1.3% 60% 1.1% 0.6% Judicial 18.6% 18.7% 19.4% 17.4% 17.3% 50% 17.1% Intergovernmental 0.8% 0.9% 0.9% 0.8% 1.7% General Government 40% 1.1% Debt Service 30% Public Safety 44.0% 43.5% 42.4% 20% 41.3% 39.7% 41.6% 10% 0% FY2020 FY2021 FY2022 FY2023 FY2024 FY2025 13  Trend Analysis of General Fund Expenditures by Type General Fund Expenses by Type 100% 4.8% 3.0% 5.3% 9.2% 9.1% 4.2% 8.4% 4.1% 13.6% Transfers Out 90% 0.8% 0.9% 0.9% 4.0% 3.6% 0.8% 1.7% 3.5% 1.1% 80% 24.7% 22.1% Other Agencies 21.7% 20.8% 21.3% 20.1% 70% Debt Service 60% Operating 50% 40% Personal Services 65.5% 65.9% 67.5% 65.3% 64.3% 30% 61.7% 20% 10% 0% FY2020 FY2021 FY2022 FY2023 FY2024 FY2025 14  Comments and Recommendations Segregation of Duties – Elected Officials (Various Constitutional Offices) ◼ Important aspect of internal control structure ◼ The following are controls or procedures which should be in place to provide for adequate segregation of duties, but are not for the listed offices: ◼ Tax Commissioner (Tag and Title Voided Payments) and Probate Court: Voided transactions lacked appropriate approval. In many cases, personnel were able to provide sufficient reasons for the voided transactions, but lacked approval. Recommendation: A formal approval process for voided transactions should be implemented that provides for supporting documentation with evidence of approval to be maintained. * Upon testing Tag and Title Voided Payments at the Tax Commissioner, our sample showed that all tested voided receipts had approval, but 2 of the 25 tested were voided by the same person that took the receipt without additional approval. Appropriate approval would constitute a different employee receipting payments and voiding receipts, or a different employee receipting payments and approving voided receipts. 15  Comments and Recommendations Segregation of Duties – Elected Officials (Various Constitutional Offices) – Repeat Comment ◼ The following are controls or procedures which should be in place to provide for adequate segregation of duties, but are not for the listed offices: ◼ Sheriff’s Administrative Accounts: The same individual has custody of assets, records cash receipt transactions, and reconciles the bank statements. Recommendation: The duties of recording, depositing, and reconciliation of cash accounts should be segregated to the extent practical. Accounting records should be reviewed by responsible officials on a regular basis. 16  Comments and Recommendations Timeliness of Deposits – Elected Officials (Various Constitutional Offices) – Repeat Comment ◼ Proper internal controls require cash receipts be deposited and transactions recorded in a timely manner. ◼ Failure to deposit cash receipts in a timely manner exposes the following offices to a greater risk of loss due to fraud: ◼ Juvenile Court and Probate Court: We noted multiple receipts were not deposited within seven days of receipting. Recommendation: At a minimum, deposits should be made weekly 17  Comments and Recommendations Other Items ◼ While testing disbursements at the Probate Court, we noted 4 of 25 disbursements tested lacked supporting documentation and evidence of approval. Recommendation: All transactions should have supporting documentation with evidence of approval. 18  Current Reporting Changes GASB 101 The Governmental Accounting Standards Board (GASB) has issued Statement No. 101, Compensated Absences. Effective for Athens-Clarke County for the fiscal year ended June 30, 2025. GASB 102 The Governmental Accounting Standards Board (GASB) has issued Statement No. 102, Certain Risk Disclosures. Effective for Athens-Clarke County for the fiscal year ended June 30, 2025. 19  Future Reporting Changes GASB 103 The Governmental Accounting Standards Board (GASB) has issued Statement No. 103, Financial Reporting Model Improvements. Effective for Athens-Clarke County for the fiscal year ended June 30, 2026. GASB 104 The Governmental Accounting Standards Board (GASB) has issued Statement No. 104, Disclosure of Certain Capital Assets. Effective for Athens-Clarke County for the fiscal year ended June 30, 2026. 20 Samuel G. Latimer, CPA, CFE slatimer@rushton.cpa www.rushton.cpa 770.287.7800 21 North Downtown Athens Phase 3 North Downtown Athens Phase 3 Brief Project History Brief Project History ND Athens Project History SPLOST was passed in 2019, which allocated $39M for the purchase of the existing Bethel property and infrastructure for 5 phases of development AHA College & Hoyt To infrastructure required to meet the Master Plan included the Wetland Park across from the Athens Center from Aging, two new streets and associated improvements, public art, Bethel Village and a Linear Park 3 ND Athens Master Plan Goals Main Goals of the Master Plan: 1) Replace and rehouse all 183 HAP units on-site 2) Triple the density of the existing Bethel site as a mixed-income property to approximately 715 units 3) Reintroduce the street grid and tie Bethel Village the existing Bethel site to Downtown 4 ND Athens Master Plan Goals One of the main goals of the Master Plan was to replace all 183 HAP units on-site, as the current buildings are deteriorating and in poor repair. Phase 1 and 2 will replace 113 of 183 HAP units on-site. Once Phase 2 is complete, all existing residents in the remaining buildings should be rehoused. The development team must replace another 70 HAP units to fulfill our obligations REPLACEMENT HAP UNITS Total Units 1 BR Units 2 BR Units 3 BR Units Original HAP Units On-Site 183 28 81 74 Phase 1 40 10 18 12 Phase 2 73 18 28 27 Total New Replacement Units 113 28 46 39 Remaining HAP Units to Replace 70 0 35 35 5 ND Athens Financing Challenges At the time of the Master Plan, LIHTC housing could be built for a total cost of $280,000/unit and could easily be funded with 9% tax credits. By the time the first phase closed in April 2023, increases in construction pricing and interest rates had increased the overall cost to over $415,000/unit 6 ND Athens Financing Challenges Phase 1 and Phase 2 were financed using different tax credit programs in 2023 and 2025 based on program eligibility 2023 2025 Phase 1 Phase 2 120 Units 140 Units Structure Parking Garage Parked 9% 4% in QCT 40 HAP (33.33%) 73 HAP (50%) 1st Mortgage 11,376,000 23% 15,200,000 23% Investment Earning on Bonds 0% 3,370,860 5% SPLOST / ACCUG Loan 9,800,000 20% 3,500,000 5% AHA Loan 1,500,000 3% - 0% DCA Loan 4,000,000 8% 0% Tax Credit Equity 22,132,166 44% 42,627,852 65% Managing Member Equity 100 0% 100 0% Deferred Developer Fee 1,000,000 2% 789,283 1% Total 49,808,266 100% 65,488,096 100% Per Unit Cost 415,069 448,549 7 Where are we today? Where are we today? ND Athens Project Resources Resources for Phases 1, 3 and 4 are capped at the agency level. We cannot generate additional LIHTC equity aver the capped amount like we could on Phase 2 9 ND Athens Project Resources For financing and constructability reasons, the maximum achievable units per phase is not as high as contemplated in the Master Plan Phase 1: Master Plan 110-125 Units 120 Units – 40 HAP (33%) Phase 2: Master Plan 180-220 Units 146 Units – 73 HAP (50%) Bethel Village Phase 3: Master Plan 180-220 Units est. 185 Max Phase 4: Master Plan 120-150 Units est. 60 Max TOTAL: Master Plan estimate 715 est. 511 Units Max 10 ND Athens Phase 3 Test Fit JHP studied the remaining Parcel 3 and Parcel 4 sites and produced a maximum unit count of 185 and 60 units respectively, with an estimated hard cost per unit of $287,000 11 ND Athens Phase 3 – Financing If we finance Phase 3 at maximum density per the original master plan, the resulting funding gap is $18.9M. This assumes a 4% deal, with pricing at $1.38 and similar debt terms as Phase 2 62 HAP at 33% of Phase 3 185 Units Garage Parked 4% (no QCT) 62 HAP (33%) 1st Mortgage 19,765,000 Investment Earning on Bond 2,090,988 SPLOST / ACCUG Loan - AHA Loan - 4% Federal TCEquity 23,882,969 4% State TCEquity 15,284,941 Managing Member Equity 100 Deferred Developer Fee - Funding Required 18,887,832 Total 79,911,830 Per Unit Cost 431,956 For reference, Phase 2 was $448,000/unit – we assume some cost and financing efficiencies with more units 12 ND Athens Phase 3 - Financing If we finance Phase 3 as similarly to Phase 2 as possible, with 140 units that are 50% HAP and 50% LIHTC, the required additional funding is $14,487,755 70 HAP in Phase 3 Phase 2 Reference Difference 140 Units 146 Units Garage Parked Garage Parked 4% (no QCT) 4% in QCT 70 HAP (50%) 73 HAP (50%) 1st Mortgage 15,349,000 15,200,000 149,000 Investment Earning on Bond 1,600,495 3,370,860 (1,770,365) <<bonds reduced to 30% SPLOST / ACCUG Loan - 3,500,000 (3,500,000) <<SPLOST removed AHA Loan - - - 4% Federal TCEquity 18,181,928 20,952,153 (2,770,225) <<lost 130% boost & pricing 4% State TCEquity 11,636,313 21,675,699 (10,039,386) <<lost 130% boost & pricing Managing Member Equity 100 100 - Funding Required 14,487,755 14,487,755 Total 61,255,591 65,488,096 Per Unit Cost 437,540 448,549 13 ND Athens Phase 3 – Test Fit Given the challenges of financing a high-density building on the remaining Bethel property, we asked JHP to explore the potential site density with surface parking. We estimate the hard cost per unit would drop to $242,000/unit 14 ND Athens Phase 3 - Financing For Phase 3, we propose a 92-unit, surface parked building which we estimate will require $5,918,389 in additional funding. This would include 46 of the remaining HAP units, with 24 left to replace in Phase 4. 46 HAP in Phase 3 92 Units Surface Parked 9% 46 HAP (50%) 1st Mortgage 9,822,562 Investment Earning on Bond - SPLOST / ACCUG Loan - AHA Loan - 4% Federal TCEquity 11,359,103 4% State TCEquity 7,269,751 Managing Member Equity 100 Funding Required 5,918,389 Total 34,369,906 Per Unit Cost 381,888 For reference, we anticipate that Phase 4 would require $2M in soft subsidy to be competitive for a 9% application round 15 ND Athens Phase 3 - Financing Any future phase will require significant additional resources to complete. The numbers below are meant to give a rough guide to the magnitude of those additional resources given the information we have today 62 HAP at 33% of Phase 3 70 HAP in Phase 3 46 HAP in Phase 3 185 Units 140 Units 92 Units Garage Parked Garage Parked Surface Parked 4% (no QCT) 4% (no QCT) 9% 62 HAP (33%) 70 HAP (50%) 46 HAP (50%) 1st Mortgage 19,765,000 15,349,000 9,822,562 Investment Earning on Bond 2,090,988 1,600,495 - SPLOST / ACCUG Loan - - - AHA Loan - - - 4% Federal TCEquity 23,882,969 18,181,928 11,359,103 4% State TCEquity 15,284,941 11,636,313 7,269,751 Managing Member Equity 100 100 100 Funding Required 18,887,832 14,487,755 5,918,389 Total 79,911,830 61,255,591 34,369,906 Per Unit Cost 431,956 437,540 381,888 16 ND Athens Once Phase 2 is complete, all existing residents currently living on Site 3 and 4 will be relocated to Phase 2 17 Gap Funding Strategy Gap Funding Strategy ND Athens Current Resources SPLOST 2020 Project 02 North Downtown Athens SPLOST Allocations $ 43,610,000 Program Funding Level $ 40,733,334 NDA Funding Designation ($ 39,000,000) NDA Initial Commitment ($ 17,875,391) Land Acquisition ($ 1,733,334) NDA Supplement ($ 855,527) Master Planning & Engineering ($ 150,000) Public Art Designation ($ 10,546,222) Site Infrastructure & Utilities ($ 4,517) General Project Expenses ($ 6,743,804) Phase 1 Expenses $ 600,000 Ground Lease – Phase 1 ($ 212,043) Professional Services $ 700,000 Ground Lease – Phase 2 _ ($ 1,037,689) AHA Project Management _ $ 4,022,149 Undesignated Funds $ 3,462,658 Available for NDA Phases 3+ Affordable Housing SRF Allocations $ 5,000,000 FY25 Contributions & Classifications from General Fund $ 411,000 Addt’l. Inclusionary Zoning Payment in Lieu – The Hub $ 1,000,000 FY26 Contributions from General Fund ($ 1,000,000) LIHTC Loan – Classic City Heights ($ 3,500,000) LIHTC Loan – NDA Phase 2 _ $ 1,911,000 Undesignated Loan Funds 19 ND Athens Current Resources SPLOST 2020 Project 02 North Downtown Athens SPLOST Allocations $ 43,610,000 Program Funding Level $ 40,733,334 NDA Funding Designation ($ 39,000,000) NDA Initial Commitment ($ 17,875,391) Land Acquisition ($ 1,733,334) NDA Supplement ($ 855,527) Master Planning & Engineering ($ 150,000) Public Art Designation ($ 10,546,222) Site Infrastructure & Utilities ($ 4,517) General Project Expenses ($ 6,743,804) Phase 1 Expenses $ 600,000 Ground Lease – Phase 1 ($ 212,043) Professional Services $ 700,000 Ground Lease – Phase 2 _ ($ 1,037,689) AHA Project Management _ $ 4,022,149 Undesignated Funds $ 3,462,658 Available for NDA Phases 3+ Affordable Housing SRF Allocations $ 5,000,000 FY25 Contributions & Classifications from General Fund $ 411,000 Addt’l. Inclusionary Zoning Payment in Lieu – The Hub $ 1,000,000 FY26 Contributions from General Fund ($ 1,000,000) LIHTC Loan – Classic City Heights ($ 3,500,000) LIHTC Loan – NDA Phase 2 _ $ 1,911,000 Undesignated Loan Funds 20 ND Athens Current & Projected Needs $ 1,037,689 AHA Management Fee Reallocation $ 558,042 Deferred Developer Fee $ 1,000,000 Soft Pay Loan from ACCGov $ 600,000 Ground Lease Reallocation – Phase 1 $ 700,000 Ground Lease Reallocation – Phase 2 Gaps: North Downtown Athens $ 2,022,658 Contribution from NDA SPLOST $ 5,918,389 Total Gap Filled $ 500,000 Contribution from NDA SPLOST $ 5,918,389 Phase 3 Gap $ 500,000 Funding for Demo $ 500,000 Phase 4 Demo (During Phase 3) $ 2,000,000 Phase 4 Gap (estimated) _ $ 600,000 Ground Lease Reallocation – Phase 3 $ 8,418,389 Projected Needs – Phases 3&4 $ 400,000 Ground Lease Preallocation – Phase 4 $ 940,000 Contribution from NDA SPLOST $ 60,000 Deferred Developer Fee $ 2,000,000 Total Gap Filled 21 ND Athens SPLOST Impacts If Implemented SPLOST 2020 Project 02 North Downtown Athens SPLOST Allocations $ 43,610,000 Program Funding Level $ 40,733,334 NDA Funding Designation ($ 39,000,000) NDA Initial Commitment ($ 17,875,391) Land Acquisition ($ 1,733,334) NDA Supplement ($ 855,527) Master Planning & Engineering ($ 150,000) Public Art Designation ($ 10,546,222) Site Infrastructure & Utilities ($ 4,517) General Project Expenses ($ 6,743,804) Phase 1 Expenses $ 600,000 Ground Lease – Phase 1 ($ 212,043) Professional Services $ 700,000 Ground Lease – Phase 2 _ ($ 1,037,689) AHA Project Management $ 2,722,149 Undesignated Funds $ 600,000 Ground Lease – Phase 1 $ 700,000 Ground Lease – Phase 2 $ 600,000 Ground Lease – Phase 3 $ 400,000 Ground Lease – Phase 4 _ $ 6,800,347 Available for NDA Phases 3+ 22 ND Athens Key Recommendations Reallocate AHA Project Management Fees to Construction Designate Current and Future Ground Lease Payments to North Downtown Athens Require the Project to Defer Developer’s Fees in Phase 3 Provide a $1M Soft-Pay LIHTC Gap Financing Loan from the AHSRF Provide up to $4.4M in SPLOST Funds for Phase 3 Infrastructure/Demo Designate $500k in SPLOST Funds for Phase 4 Demolition ND Athens Other Alternatives Phase 3 Phase 4 • Increase LIHTC Gap Financing (limited • Increase LIHTC Gap Financing (limited funding) funding) • Deeper SPLOST Supplement (capped) • Deeper SPLOST Supplement (capped) • Increase Deferred Developers Fees • Increase Deferred Developers Fees (project risk) (project risk) • Reduce Public Infrastructure • Reduce Public Infrastructure • Leverage AHA/ACCGov Properties • Leverage AHA/ACCGov Properties • Reduce/Eliminate Linear Park 24 ND Athens Next Steps Confirm LIHTC Construction ACCGov Application Bid Commitment Begin Close Financing Phase 3 IGA Construction Implement Complete Begin Phase 4 Phase 4 Phase 3 Process Demolition Construction 25 Questions?