HomeMy WebLinkAbout2016 Audit ReportAnnual Financial Report
Fo r the Year Ended June 30, 2016
State of
New Mexico
To wn of Taos
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INTRODUCTORY SECTION
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Page 1 of 2STATE OF NEW MEXICO
Town of Taos
Annual Financial Report
June 30, 2016
Table of Contents
INTRODUCTORY SECTION Exhibit Page
Table of Contents 4-5
Official Roster 7
FINANCIAL SECTION
Independent Auditors' Report 10-12
Management's Discussion and Analysis 13-20
BASIC FINANCIAL STATEMENTS
Government-wide Financial Statements:
Statement of Net Position A-1 22-23
Statement of Activities A-2 24-25
Fund Financial Statements:
Balance Sheet - Governmental Funds B-1 26
Reconciliation of the Balance Sheet to the Statement of Net Position 27
Statement of Revenues, Expenditures, and Changes in Fund Balances - Governmental Funds B-2 28
Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances
of Governmental Funds to the Statement of Activities 29
Statement of Revenues, Expenditures, and Changes in Fund Balance -
Budget (Non-GAAP Budgetary Basis) and Actual:
General Fund C-1 31
Statement of Net Position - Proprietary Funds D-1 32-33
Statement of Revenues, Expenses and Changes in Net Position - Proprietary Funds D-2 34
Statement of Cash Flow - Proprietary Funds D-3 35
Statement of Fiduciary Assets and Liabilities - Agency Funds E-1 36
NOTES TO THE FINANCIAL STATEMENTS 37-71
REQUIRED SUPPLEMENTARY INFORMATION Schedule
Schedule of the Town's Proportionate Share of the Net Pension Liability I 74-76
Schedule of the Town's Contributions II 77-79
Notes to Required Supplementary Information 80
SUPPLEMENTARY INFORMATION Statement
Nonmajor Governmental Fund Descriptions 82-85
Combining and Individual Fund Statements and Schedules:
Combining Balance Sheet - Nonmajor Governmental Funds A-1 86-91
Combining Statement of Revenues, Expenditures, and Changes in
Fund Balances - Nonmajor Governmental Funds A-2 92-97
Statement of Revenues, Expenditures, and Changes in Fund Balance - Budget
(GAAP Budgetary Basis) and Actual:
Fire Protection Special Revenue Fund B-1 98
Recreation Special Revenue Fund B-2 99
Lodgers Tax Special Revenue Fund B-3 100
Local Government Correction Special Revenue Fund B-4 101
Law Enforcement Protection Special Revenue Fund B-5 102
Civic Center Special Revenue Fund B-6 103
Domestic Violence Shelter Special Revenue Fund B-7 104
Public Transportation Special Revenue Fund B-8 105
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Page 2 of 2STATE OF NEW MEXICO
Town of Taos
Annual Financial Report
June 30, 2016
Table of Contents
SUPPLEMENTARY INFORMATION (continued)Statement Page
Statement of Revenues, Expenditures, and Changes in Fund Balance - Budget
(GAAP Budgetary Basis) and Actual: (continued)
Community Grants Special Revenue Fund B-9 106
Municipal Road Gasoline Tax Special Revenue B-10 107
1/4 Cent Municipal Gross Receipts Tax Special Revenue Fund B-11 108
Historical District Special Revenue Fund B-12 109
Communications Special Revenue Fund B-13 110
Confidential Informant Special Revenue Fund B-14 111
Capital/Maintenance/Operating Special Revenue Fund B-15 112
2015 NMFA Fire Pumper B-16 113
2009 NMFA PPRF Disadvantage Program- Eco Park Debt Service Fund B-17 114
2008 Gross Receipts Tax Revenue Bond Retirement Debt Service Fund B-18 115
NMFA Debt Service Reserve Eco Park Debt Service Fund B-19 116
2007 NMFA Land Purchase Debt Service Fund B-20 117
2011 PPRF Street Improvement Debt Service Fund B-21 118
2011 PPRF Street Improvement Reserve Debt Service Fund B-22 119
Facilities Improvements Capital Projects Fund B-23 120
Capital Projects Capital Projects Fund B-24 121
Vehicle Replacement Capital Projects Fund B-25 122
1994 Gross Receipts Tax Revenue Bond Acquisition Capital Projects Fund B-26 123
1999 Gasoline Tax Acquisition Capital Projects Fund B-27 124
Airport Construction Capital Projects Fund B-28 125
Statement of Revenues, Expenses and Changes in Net Position - Budget (GAAP Basis)
and Actual - Proprietary Funds
Water and Sewer Fund B-29 126
Solid Waste Fund B-30 127
Taos Regional Landfill Fund B-31 128
SUPPORTING SCHEDULES Schedule
Schedule of Deposits and Investment Accounts III 130-131
Schedule of Collateral Pledged by Depository for Public Funds IV 132
Schedule of Changes in Fiduciary Assets and Liabilities - Agency Funds V 133
Schedule of Joint Powers Agreement VI 134-135
Schedule of Vendor Information for Purchases Exceeding $60,000 (excluding GRT)VII 136-139
COMPLIANCE SECTION
Report on Internal Control Over Financial Reporting and on Compliance
and Other Matters Based on an Audit of Financial Statements
Performed in Accordance with Government Auditing Standards 142-143
FEDERAL FINANCIAL ASSISTANCE
Report on Compliance for the Major Federal Program and on Internal Control
Over Compliance Required by the Uniform Guidance 146-147
Schedule of Expenditures of Federal Awards VIII 148-151
Schedule of Findings and Questioned Costs IX 153-159
OTHER DISCLOSURES 161
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STATE OF NEW MEXICO
Town of Taos
Official Roster
June 30, 2016
Name Town Council Title
Daniel Barrone Mayor
Judith Cantu Councilor
George “Fritz” Hahn Councilor
Darien Fernandez Councilor
Nathaniel Evans Councilor
Administration
Richard Bellis Town Manager
Marietta Fambro Finance Director
Renee Lucero Town Clerk
Richard Chavez Municipal Judge
Floyd W. Lopez Town Attorney
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FINANCIAL SECTION
9
Understanding Your Needs to
Provide Solutions that
Achieve Results
INDEPENDENT AUDITORS’ REPORT
Timothy Keller
New Mexico State Auditor
The United States Office of Management and Budget and
The Town Council
Town of Taos
Taos, New Mexico
Report on Financial Statements
We have audited the accompanying financial statements of the governmental activities, the business-type activities, each
major fund, the aggregate remaining fund information, and the budgetary comparison for the general fund of the Town of
Taos (the Town), as of and for the year ended June 30, 2016, and the related notes to the financial statements which
collectively comprise the Town’s basic financial statements as listed in the table of contents. We also have audited the
financial statements of each of the Town’s nonmajor governmental funds, and the budgetary comparisons for the
proprietary funds, the major capital projects fund, and all nonmajor funds presented as supplementary information, as
defined by the Governmental Accounting Standards Board, in the accompanying combining and individual fund
financial statements as of and for the year ended June 30, 2016, as listed in the table of contents.
Management’s Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in accordance with
accounting principles generally accepted in the United States of America; this includes the design, implementation, and
maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from
material misstatements, whether due to fraud or error.
Auditors’ Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in
accordance with auditing standards generally accepted in the United States of America and the standards applicable to
financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States.
Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial
statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial
statements. The procedures selected depend on the auditors’ judgment, including the assessment of the risks of material
misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the Town’s preparation and fair presentation of the financial statements in order to
design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the Town’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating
the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by
management, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit
opinions.
www.rpcllp.com
10
Opinions
In our opinion, the financial statements referred to above pres ent fairly, in all material respects, the respective financial
position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund
information of the Town of Taos, as of June 30, 2016, and the respective changes in financial position and where
applicable, cash flows thereof, and the respective budgetary comparison for the general fund for the year then ended in
accordance with accounting principles generally accepted in the United States of America.
In addition, in our opinion, the financial statements referred to above present fairly, in all material aspects, the respective
financial position of each nonmajor governmental fund as of June 30, 2016, and the respective changes in financial
position thereof and the respective budgetary comparisons for the proprietary funds, major capital projects fund, and all
nonmajor funds for the year then ended in accordance with accounting principles generally accepted in the United States
of America.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management’s discussion and
analysis on pages 13 through 19 and Schedules I and II and the Notes to the Required Supplementary Information on
pages 74 through 80 be presented to supplement the basic financial statements. Such information, although not a part of
the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an
essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or
historical context. We have applied certain limited procedures to the required supplementary information in accordance
with auditing standards generally accepted in the United States of America, which consisted of inquiries of management
about the methods of preparing the information and comparing the information for consistency with management’s
responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic
financial statements. We do not express an opinion or provide any assurance on the information because the limited
procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.
Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the
Town’s basic financial statements, the combining and individual fund financial statements, and the budgetary
comparisons. The introductory section, the Schedule of Expenditures of Federal Awards, as required by Title 2 U.S.
Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements
for Federal Awards (Uniform Guidance) and Supporting Schedules III through VII required by 2.2.2 NMAC are
presented for the purposes of additional analysis and are not a required part of the basic financial statements.
The Schedule of Expenditures of Federal Awards and Supporting Schedules III through VI required by Section 2.2.2
NMAC are the responsibility of management and were derived from and relate directly to the underlying accounting and
other records used to prepare the basic financial statements. Such information has been subjected to the auditing
procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing
and reconciling such information directly to the underlying accounting and other records used to prepare the basic
financial statements or to the basic financial statements themselves, and other additional procedures in accordance with
the auditing standards generally accepted in the United States of America. In our opinion, the Schedule of Expenditures
of Federal Awards and Supporting Schedules III through VI required by Section 2.2.2 NMAC are fairly stated, in all
material respects, in relation to the basic financial statements as a whole.
The introductory section and Schedule VII has not been subjected to the auditing procedures applied in the audit of the
basic financial statements, and accordingly, we do not express an opinion or provide any assurance on it.
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Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated November 29, 2016, on our
consideration of the Town’s internal control over financial reporting and on our tests of its compliance with certain
provisions of laws, regulations, contracts and grant agreements and other matters. The purpose of that report is to
describe the scope of our testing of internal control over financial reporting and compliance and the results of that
testing, and not to provide an opinion on the internal control over financial reporting or on compliance. That report is an
integral part of an audit performed in accordance with Government Auditing Standards in considering the Town’s
internal control over financial reporting and compliance.
RPC CPAs + Consultants, LLP
Albuquerque, NM
November 29, 2016
12
Town of Taos
Management’s Discussion and Analysis
June 30, 2016
We are pleased to present the Town of Taos’ financial statements for the fiscal year ended June 30, 2016. Management’s
discussion and analysis of these statements is also provided to help the reader fully understand the Town’s financial condition.
FINANCIAL HIGHLIGHTS
The Town of Taos’ total assets exceeded its total liabilities at the close of the fiscal year by $76,634,977 (net position).
Of this amount, -$49,474 is unrestricted net position due to the on-going implementation of GASB Statement No. 68.
The current year Pension Plan Liability is the underlying factor of this negative unrestricted net position. This GASB
Statement is reflected on the financial statements for the second time in the history of the Town and other
governmental entities throughout the entire state. Even though ending the year with this negative amount, the Town
has at this time the available cash balances to meet the government’s ongoing obligations to its citizens and creditors.
The Town’s total net position increased by $4,833,011 during the fiscal year. The majority of this overall increase was
due to increases in charges for services, capital grants (mainly the Airport Runway Construction project) and taxes.
As of June 30, 2016, the Town’s governmental activities reported a combined ending net position balance of
$48,708,026. Of this total, $5,093,945 is designated for special revenue, debt service and capital projects.
At the close of the current fiscal year, the unassigned fund balance for the general fund was $4,441,115, amounting to
45 percent of total general fund expenditures.
The Town of Taos’ total debt had a net increase of $274,309 during the year due to scheduled principal payments
being paid and acquiring new debt for the construction of a new cell at the Taos Regional Landfill. Compensated
absences have increased from the prior year by $62,564 due to less leave taken by upper Management and other
employees. The Town paid $1,101,737 towards the principal of various of its government loans, bonds and contracts
payable.
Overview of the Financial Statements
The Town’basic financial statements comprise three components: 1) government-wide financial statements; 2) fund
financial statements; and 3) notes to the financial statements. This report also contains other supplementary information in
addition to the basic financial statements themselves.
Government-wide financial statements. The government-wide financial statements are designed to provide readers with a
broad overview of the Town of Taos’ finances, in a manner similar to a private-sector business.
The statement of net position presents information on all of the Town of Taos’ assets and liabilities, with the difference between
the two reported as net position. Over time, increases or decreases in net position may serve as a useful indicator regarding
whether or not the financial position of the Town of Taos is improving or deteriorating.
The statement of activities presents information showing how the government’s net position changed during the most recent
fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless
of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only
result in cash flows in future fiscal periods (e.g., uncollected taxes and earned but unused personal leave).
Both of the government-wide financial statements distinguish functions of the Town of Taos that are principally supported in a
majority by taxes and a minimal amount from other miscellaneous receipts (governmental activities) from other functions that
are intended to recover all or a significant portion of their costs through user fees and charges (business-type activities). The
governmental activities of the Town of Taos include general government, public safety, public works, culture and recreation,
and health and welfare. The business-type activities of the Town include joint Water and Sewer Services, Solid Waste Services,
and the Taos Regional Landfill.
The government-wide financial statements can be found in Exhibits A-1 and A-2 of this report.
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Town of Taos
Management’s Discussion and Analysis
June 30, 2016
Fund financial statements. A fund is a grouping of related accounts that is used to maintain control over resources that have
been segregated for specific activities or objectives. The Town of Taos, like other state and local governments, uses fund
accounting to ensure and demonstrate compliance with finance-related legal requirements. All of the funds of the Town of Taos
can be divided into three categories: governmental funds, proprietary funds, and fiduciary funds.
Governmental Funds. Governmental funds are used to account for essentially the same functions reported as governmental
activities in the government-wide financial statements. However, unlike the government-wide financial statements,
governmental fund financial statements focus on daily inflows and outflows of spendable resources, as well as on balances of
spendable resources available at the end of the fiscal year. Such information may be useful in determining what financial
resources are available in the near future to finance the Town’s programs.
Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to
compare the information presented for governmental funds with similar information presented for governmental activities in the
government-wide financial statements. By doing so, readers may better understand the long-term impact of the government’s
near term financing decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues,
expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds
and governmental activities.
The Town of Taos maintains twenty-nine individual governmental funds organized according to their type (special revenue,
debt service and capital projects). Information is presented separately in the governmental fund balance sheet and statement of
revenues, expenditures, and changes in fund balances for the General Fund and Airport Construction Fund, which are
considered major funds. Data from the other twenty-seven governmental funds are combined into a single, aggregated
presentation. Individual fund data for each of these nonmajor governmental funds is provided in the form of combining
statements elsewhere in this report.
The Town of Taos adopts an annual appropriated budget for its general fund, capital equipment replacement, special revenue
fund, fire, police, GRT, and all other funds. A budgetary comparison statement has been provided for the General Fund to
demonstrate compliance with this budget. In addition, the individual financial statements of the nonmajor governmental fund
types include budgetary comparison data.
The basic governmental fund financial statements can be found in Exhibits B-1 through C-1 of this report.
Proprietary funds. Proprietary funds are generally used to account for services for which the Town charges customers – either
outside customers or internal units or departments of the Town. Proprietary funds provide the same type of information as
shown in the government-wide financial statements, only in more detail. The Town maintains three proprietary fund.
Enterprise funds. Are used to report the same functions presented as business-type activities in the government-wide financial
statements. The Town uses enterprise funds to account for the joint water and sewer services, solid waste and regional landfill
operations for the Town. The enterprise funds are considered to be major funds of the Town and can be found in Exhibits D-1
through D-3 of this report.
Fiduciary funds. Fiduciary funds are used to account for resources held for the benefit of parties outside the government.
Fiduciary funds are not reflected in the government-wide financial statement because the resources of those funds are not
available to support the Town of Taos’ own programs. The accounting used for fiduciary funds is much like that used for
proprietary funds.
The Town of Taos fiduciary funds account for the collection of street cut permits and deposits for recreation events. The basic
fiduciary fund financial statement can be found in Exhibit E-1 of this report.
Notes to the financial statements. The notes provide additional information that is essential to a full understanding of the data
provided in the government-wide and fund financial statements. The notes to the financial statements can be found on pages
37-71 of this report.
Combining statements. The combining statements referred to earlier in connection with nonmajor governmental funds are
presented immediately following the notes to the financial statements. Combining and individual fund statements and
schedules can be found on pages 86-128 of this report.
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Town of Taos
Management’s Discussion and Analysis
June 30, 2016
GOVERNMENT-WIDE FINANCIAL ANALYSIS
Analysis of Net Position
As noted earlier, the net of assets over liabilities, otherwise known as net position, may serve over time as a useful indicator of a
government’s financial position. In the case of the Town of Taos, assets exceeded liabilities by $76,634,977 at the close of the
current fiscal year.
The significant portion of the Town of Taos’ net position represents the Town’s investment of $67,825,840 in capital assets
(e.g., land improvements, buildings, infrastructure and machinery & equipment), less any related outstanding debt used to
acquire those assets. The Town of Taos uses these capital assets to provide services to its citizens, so these assets are not
available for future spending. Although the Town of Taos’ investment in its capital assets is reported net of related debt, it
should be noted that the resources needed to repay this debt must be provided from other sources, since the capital assets
themselves cannot be used to liquidate these liabilities.
Governmental Business-Type
Activities Activities Total
Assets
Current and other assets 13,166,538$ 5,469,143$ 18,635,681$
Restricted cash, cash equivalents & investments 19,810 2,707,053 2,726,863
Restricted investments 364,366 1,351,236 1,715,602
Capital assets, net of accumulated
depreciation 53,509,216 27,124,711 80,633,927
Total assets 67,059,930 36,652,143 103,712,073
Deferred Outflows of Resources
Change in assumptions 94,413 10,488 104,901
Net difference between projected and actual investment
earnings on pension plan investments - 5,995 5,995
Employer contributions subsequent to the measurement date 807,228 89,673 896,901
Total deferred outflows of resources 901,641 106,156 1,007,797
Total assets and deferred outflows of resources 67,961,571$ 36,758,299$ 104,719,870$
Liabilities
Current Liabilities 4,216,524$ 1,041,119$ 5,257,643$
Non-current liabilities 14,766,867 7,763,974 22,530,841
Total liabilities 18,983,391 8,805,093 27,788,484
Deferred Inflows of Resources
Change in assumptions 61,744 6,488 68,232
Change in proportion 177,935 19,767 197,702
Net difference between projected and actual investment
earnings on pension plan investments 30,475 - 30,475
Total deferred inflows of resources 270,154 26,255 296,409
Net Position
Net investment in capital assets 46,291,729 21,534,111 67,825,840
Restricted 5,093,945 3,764,666 8,858,611
Unrestricted (2,677,648) 2,628,174 (49,474)
Total net position 48,708,026$ 27,926,951$ 76,634,977$
Total Liabilities and Net Position 67,961,571$ 36,758,299$ 104,719,870$
15
Town of Taos
Management’s Discussion and Analysis
June 30, 2016
A portion of the Town of Taos’ governmental restricted net position of $5,093,945 (10 percent) represents resources that are
subject to restrictions related to covenants arising from the Town’s long-term debt issuance and capital projects. The remaining
balance of unrestricted net position, ($2,677,648) previously stated above, has fallen to a negative due to the implementation of
GASB Statement 68. In the previous year, this amount was ($3,479,204), the first year of implementation of GASB Statement
68. Taking that negative into consideration the Town still has the available cash to meet the government’s ongoing obligations
to citizens and creditors.
At the end of the current fiscal year, the Town of Taos is able to report positive balances in all categories of net position for
both governmental and business-type activities.
Analysis of Changes in Net Position
The Town’s net position increased by $4,833,011 during the fiscal year. This increase is primarily the result of increased
operating and capital grants, and gross receipts taxes during the fiscal year.
Governmental Business-type
Revenues Activities Activities Total
Program revenues:
Charges for service 1,028,393$ 5,932,839$ 6,961,232$
Operating grants and contributions 934,106 - 934,106
Capital grants and contributions 6,155,776 6,155,776
General revenues:
Property taxes, levied for general purposes 1,071,162 - 1,071,162
Gross receipts taxes 10,707,183 691,685 11,398,868
Gasoline and auto distribution taxes 342,514 - 342,514
Other taxes 1,398,657 - 1,398,657
Interest income (loss)16,976 14,394 31,370
Miscellaneous income 115,108 20,166 135,274
Transfer to other entity (648,990) - (648,990)
Total Revenues 21,120,885 6,659,084 27,779,969
Program expenses:
General government 8,580,300$ -$ 8,580,300$
Public safety 3,278,763 - 3,278,763
Public works 1,363,274 - 1,363,274
Culture and recreation 2,574,665 - 2,574,665
Health and welfare 186,881 - 186,881
Interest on long-term debt 267,790 - 267,790
Joint water and sewer - 4,342,423 4,342,423
Solid waste - 1,419,753 1,419,753
Taos Regional Landfill - 933,109 933,109
Total Expenses 16,251,673 6,695,285 22,946,958
Change in net position 4,869,212 (36,201) 4,833,011
Net Position, beginning 43,838,814 27,963,152 71,801,966
Net Position, ending 48,708,026$ 27,926,951$ 76,634,977$
16
Town of Taos
Management’s Discussion and Analysis
June 30, 2016
Governmental activities. Governmental activities increased the Town of Taos’ net position by $4,833,011, primarily as the
result of increase in capital grants and contributions (as previously stated the Airport Runway project) and gross receipts taxes.
Along with expenditures being less $326,702 than last fiscal year.
Tax revenues account for $13,519,516 or 64 percent of governmental revenues. Tax revenues are made up of property, gross
receipts, gasoline and motor vehicle and other taxes.
The General fund received the majority of the Town’s program revenue, accounting for $8,118,275 or 38 percent of total
governmental revenues. The primary recipients of these revenues are general government, public works and public safety.
The Town’s direct charges to users of governmental services made up $1,028,393 or 5 percent of total governmental revenues.
These charges are for fees, fines and forfeitures, and licenses and permits.
Business-type activities. Business-type activities decreased the Town’s net position by $36,201.
The Town’s direct charges to users of business-type services made up $5,932,839 or 89 percent of total business-type revenues.
These charges are for water and sewer services, water and sewer connection fees, landfill tipping fees and solid waste services.
These direct charges for service increased by $29,349 from the previous year, primarily as the result of the CIP increase and the
5th and final year of a rate increase in the water and sewer rates. Even though revenues were up, expenditures exceeded
revenues in the joint water and sewer program which contributed to the decrease in the net position. The Town continues
looking at the joint water and sewer program in ways to reduce expenditures, such as refunding of debt service and analysis of
direct cost of employees expensed to the program.
.
FINANCIAL ANALYSIS OF THE TOWN’S FUNDS
The Town of Taos uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements.
Governmental funds. The focus of the Town of Taos’ governmental funds is to provide information on near-term inflows,
outflows, and balances of spendable resources. Such information is useful in assessing the Town of Taos’ financing
requirements. In particular, unassigned fund balance may serve as a useful measure of a government’s net resources available
for spending at the end of the fiscal year. Types of Governmental funds reported by the Town include the General Fund,
Special Revenue Funds, Debt Service Funds and Capital Projects Funds.
Revenues for governmental functions overall totaled approximately $21,989,846 in the fiscal year ended June 30, 2016, which
represents an increase of $3,243,995 from the fiscal year ended June 30, 2015. This is largely due to the increase in gross
receipts, federal and state capital grants and state operating grants. Expenditures for governmental functions, totaling
$21,061,691 increased by approximately $2,823,050 from the fiscal year ended June 30, 2015. This is largely due to the
increase in expenditures, public works and capital outlay due to several infrastructure projects on-going (Airport Runway
Construction) and completed. In the fiscal year ended June 30, 2016, revenues for governmental functions exceeded
expenditures by approximately $928,155.
The General Fund is the chief operating fund of the Town of Taos. It is from here that the Town pays for the public safety and
other basic services it provides to its citizens. At the end of the current fiscal year, unassigned fund balance of the general fund
was $4,441,115.
Overall, the general fund’s performance resulted in revenues over expenditures in the fiscal year ended June 30, 2016 of
$1,586,142 an increase of $257,422 over the comparable figure from the prior year of $1,328,720. The Town’s overall
financial position improved with continued music venue for tourists and locals alike bringing in additional gross receipts tax.
Proprietary Funds. The Town’s proprietary funds provide the same type of information found in the government-wide
financial statements, but in more detail.
At the end of the fiscal year, the unrestricted net position for enterprise funds were $2,628,174. The total decrease in net
position for the enterprise funds was ($36,201) compared to ($159,490) from the prior year. This improved but factors
concerning the finances of this fund have been addressed previously in the discussion of the Town’s business-type activities.
17
Town of Taos
Management’s Discussion and Analysis
June 30, 2016
Fiduciary Funds. The Town maintains fiduciary funds for the assets associated with bid bonds, street cuts permits and
recreation deposits. Changes to the fiduciary funds were immaterial for the fiscal year.
General Fund Budgetary Highlights
Town budgets reflect the same pattern as seen in the revenue and expenditures of the Town. The State of New Mexico budget
process is defined under state law and regulation. To enhance the process of developing a budget at the Town level, Taos
utilizes goals and objectives defined by the Town Council, community input meetings, long term plans and input from various
staff groups to develop the Town budget. Town defines its priorities through this process.
GASB Statement No. 34 does not require a statement presenting the overall result of the budget for each year; however, all
major budgetary funds are required to be reported as a separate statement.
The following table examines the summary budget performance of the general fund for the fiscal year ending June 30, 2016.
Detailed budget performance is examined through the Statement of Revenues, Expenditures, and Changes in Fund Balance for
the General fund found at Exhibit C-1. The Town’s final budget differs from the original budget due to amendments that were
made during the fiscal year and the increase of expenditures. Actual general fund expenditures were $703,649 less than
budgeted. This was primarily due to general government function expenditures favorable variance of $347,718. The difference
between actual expenditures and budgeted expenditures is due to various departments not spending there projected costs along
with personnel vacancy savings over the course of the fiscal year.
Budget Amounts
Original Final
Expenditures:
General government 4,825,285$ 4,707,668$ 4,359,950$ 347,718$
Public safety 3,389,050 3,338,444 3,159,090 179,354
Public works 939,403 950,323 921,578 28,745
Culture and recreation 1,481,354 1,509,757 1,438,683 71,074
Capital outlay 7,800 144,629 67,871 76,758
Total Expenditures 10,642,892$ 10,650,821$ 9,947,172$ 703,649$
Actual (GAAP
Basis)
Favorable
(Unfavorable)
Variance
Capital Asset and Debt Administration
Capital assets. The Town of Taos’ capital assets for its governmental and business-type activities as of June 30, 2016 amount
to $80,633,927 (net of accumulated depreciation). Capital assets include land, land improvements, buildings and
improvements, furniture, fixtures and equipment, and infrastructure. The Town’s capital assets for the current fiscal year
increased $3,159,476 for governmental activities and increased $830,400 for business-type activities (net of accumulated
depreciation).
The significant additions to capital assets during the year were as follows:
$2,115,507 of additions to governmental infrastructure and equipment for completion and/or purchase of the following
– Historic District Resurfacing, Youth & Family Center East Wall and Roof Improvements, Air filtration Units for
Fire Department, 2016 Pierce Arrow Pumper Tanker.
18
Town of Taos
Management’s Discussion and Analysis
June 30, 2016
Capital Asset and Debt Administration (continued)
Governmental Business-like
Activities Activities Total
Land 6,277,809$ 262,422$ 6,540,231$
Constuction in progress 9,612,167 3,268,986 12,881,153
Land improvements 7,461,945 104,895 7,566,840
Buildings and improvements 34,815,034 4,656,981 39,472,015
Machinery and Equipment 15,850,116 8,876,468 24,726,584
Infrastructure 54,814,587 33,499,623 88,314,210
Total capital assets 128,831,658 50,669,375 179,501,033
Less: accumulated depreciation (75,322,442) (23,544,664) (98,867,106)
Total property, plant and equipment, net
of accumulated depreciation 53,509,216$ 27,124,711$ 80,633,927$
For government-wide financial statement presentation purposes, all depreciable capital assets were depreciated from acquisition
date to the end of the current fiscal year. Fund financial statements record capital asset purchases as expenditures. See Note 6
in the accompanying Notes to the Financial Statements for further information regarding capital assets.
Debt Administration. At the end of the current fiscal year, the Town of Taos had total long-term obligations outstanding of
$15,181,197. The Town did acquire new debt for construction of a new cell at the Taos Regional Landfill, with the first interest
and principal payment due in fiscal year 2016.
Governmental Business-type
Activities Activities Total
Revenue Bonds 4,375,000$ 1,855,600$ 6,230,600$
NMFA amd RUS Loans 2,842,487 3,735,000 6,577,487
USDA Contract Payable - - -
Compensated absences 616,329 79,760 696,089
Landfill Closure Liability - 1,677,021 1,677,021
Total long-term liabilities 7,833,816$ 7,347,381$ 15,181,197$
See Note 7 in the accompanying Notes to the Financial Statements for further information regarding the Town of Taos’ long-
term debt.
The Town knows of no currently known facts, decisions or conditions that are expected to have a significant effect on financial
position or results of operations.
REQUESTS FOR INFORMATION
This financial report is designed to provide a general overview of the Town of Taos’ finances for all of those with an interest in
the government’s finances. Questions concerning any of the information provided in this report or requests for additional
financial information should be addressed to the Town of Taos – Finance Director, Town of Taos, 400 Camino de la Placita,
Taos, New Mexico, 87571, (575) 751-2024.
19
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20
BASIC
FINANCIAL STATEMENTS
21
Governmental
Activities
Business-type
Activities Total
Assets
Current assets
Cash and cash equivalents 5,828,662$ 2,658,119$ 8,486,781$
Investments 2,546,834 1,645,410 4,192,244
Receivables:
Property taxes 174,322 - 174,322
Other taxes 2,051,748 277,478 2,329,226
Due from other governments 2,534,272 - 2,534,272
Other 3,585 - 3,585
Customer receivables, net - 878,949 878,949
Inventory - 36,302 36,302
Internal balances 27,115 (27,115) -
Total current assets 13,166,538 5,469,143 18,635,681
Noncurrent assets
Restricted cash and cash equivalents 19,810 2,707,053 2,726,863
Restricted investments 364,366 1,351,236 1,715,602
Capital assets 128,831,658 50,669,375 179,501,033
Less: accumulated depreciation (75,322,442) (23,544,664) (98,867,106)
Total noncurrent assets 53,893,392 31,183,000 85,076,392
Total assets 67,059,930 36,652,143 103,712,073
Deferred outflows of resources
Difference between expected and actual
experience 94,413 10,488 104,901
Net difference between projected and actual
investment earnings on pension plan
investments - 5,995 5,995
Employer contributions subsequent to the
measurement date 807,228 89,673 896,901
Total deferred outflows of resources 901,641 106,156 1,007,797
Total assets and deferred outflows of resources 67,961,571$ 36,758,299$ 104,719,870$
STATE OF NEW MEXICO
Primary Government
June 30, 2016
Statement of Net Position
Town of Taos
The accompanying notes are an integral part of these financial statements.
22
Exhibit A-1
Governmental
Activities
Business-type
Activities Total
Liabilities
Current liabilities
Accounts payable 2,780,784$ 204,950$ 2,985,734$
Accrued payroll 253,959 36,557 290,516
Deposits held in trust for others 5,103 293,623 298,726
Accrued compensated absences 364,398 59,064 423,462
Accrued interest 26,716 55,886 82,602
Current portion of bonds payable 315,000 57,000 372,000
Current portion of loans payable 470,564 334,039 804,603
Total current liabilities 4,216,524 1,041,119 5,257,643
Noncurrent liabilities
Accrued compensated absences 251,931 20,696 272,627
Accrued landfill closure costs - 1,677,021 1,677,021
Bond premiums, net of accumulated
amortization of $36,386 38,320 - 38,320
Bonds payable 4,060,000 1,798,600 5,858,600
Loans payable 2,371,923 3,400,961 5,772,884
Net pension liability 8,044,693 866,696 8,911,389
Total noncurrent liabilities 14,766,867 7,763,974 22,530,841
Total liabilities 18,983,391 8,805,093 27,788,484
Deferred inflows of resources
Change of assumptions 61,744 6,488 68,232
Changes in proportion 177,935 19,767 197,702
Net difference between projected and actual
investment earnings on pension plan
investments 30,475 - 30,475
Total deferred inflows of resources 270,154 26,255 296,409
Net position
Net investment in capital assets 46,291,729 21,534,111 67,825,840
Restricted for:
Debt service 362,186 2,814,396 3,176,582
Capital projects 2,920,762 - 2,920,762
Special revenue 1,810,997 - 1,810,997
Landfill - 950,270 950,270
Unrestricted (2,677,648) 2,628,174 (49,474)
Total net position 48,708,026 27,926,951 76,634,977
Total liabilities, deferred inflows of resources, and net
position 67,961,571$ 36,758,299$ 104,719,870$
Primary Government
The accompanying notes are an integral part of these financial statements.
23
Functions/Programs Expenses
Charges for
Services
Operating
Grants and
Contributions
Capital Grants
and
Contributions
Governmental Activities:
General government 8,577,332$ 914,869$ 520,277$ 526,249$
Public safety 3,278,763 -274,127 -
Public works 1,363,274 --5,629,527
Culture and recreation 2,574,665 112,177 --
Health and welfare 186,881 1,347 139,702 -
Interest on long-term debt 267,790 ---
Total governmental activities 16,248,705 1,028,393 934,106 6,155,776
Business-type Activities:
Water and sewer 4,342,423 3,226,516 --
Solid waste 1,419,753 1,450,666 --
Taos regional landfill 933,109 1,255,657 --
Total business-type activities 6,695,285 5,932,839 --
Total primary government 22,943,990$ 6,961,232$ 934,106$ 6,155,776$
General Revenues:
Taxes:
Property taxes, levied for general purposes
Gross receipts taxes
Gasoline and motor vehicle taxes
Franchise taxes
Lodgers taxes
Investment income
Miscellaneous income
Total general revenues
Special item- Transfer to other entity
Change in net position
Net position - beginning
Net position - ending
STATE OF NEW MEXICO
Town of Taos
Statement of Activities
For the Year Ended June 30, 2016
Program Revenues
The accompanying notes are an integral part of these financial statements.
24
Exhibit A-2
Governmental
Activities
Business-Type
Activities Total
(6,615,937)$ -$(6,615,937)$
(3,004,636) -(3,004,636)
4,266,253 -4,266,253
(2,462,488) -(2,462,488)
(45,832)-(45,832)
(267,790)-(267,790)
(8,130,430) -(8,130,430)
-(1,115,907) (1,115,907)
-30,913 30,913
-322,548 322,548
-(762,446)(762,446)
(8,130,430) (762,446)(8,892,876)
1,071,162 -1,071,162
10,707,183 691,685 11,398,868
342,514 -342,514
379,973 -379,973
1,018,684 -1,018,684
14,008 14,394 28,402
115,108 20,166 135,274
13,648,632 726,245 14,374,877
(648,990)-(648,990)
4,869,212 (36,201)4,833,011
43,838,814 27,963,152 71,801,966
48,708,026$ 27,926,951$ 76,634,977$
Net (Expense) Revenue and Changes in Net Position
The accompanying notes are an integral part of these financial statements.
25
Exhibit B-1
Page 1 of 2
General Fund
Airport
Construction
Other
Governmental
Funds Total
Assets
Cash and cash equivalents 2,983,070$ 628,913$ 2,236,489$ 5,848,472$
Investments 1,007,451 -1,903,749 2,911,200
Receivables:
Property taxes 174,322 --174,322
Other taxes 1,596,373 -455,375 2,051,748
Due from other governments 1,324 2,314,469 218,479 2,534,272
Other 3,585 --3,585
Total assets 5,793,240$ 2,943,382$ 4,814,092$ 13,550,714$
Liabilities, deferred inflows of resources, and
fund balances
Liabilities
Accounts payable 166,059$ 2,425,887$ 188,838$ 2,780,784$
Accrued payroll 239,935 -14,024 253,959
Deposits held in trust for others --5,103 5,103
Due to other funds ----
Total liabilities 405,994 2,425,887 207,965 3,039,846
Deferred inflows of resources
Unavailable revenue - property taxes 117,200 --117,200
Total deferred inflows of resources 117,200 --117,200
Fund balances
Spendable
Restricted for:
General government --252,472 252,472
Public safety --76,101 76,101
Culture and recreation --782,808 782,808
Fire protection --311,488 311,488
Health and welfare --1 1
Debt service expenditures --361,277 361,277
Capital projects -517,495 1,322,223 1,839,718
Minimum fund balance 828,931 --828,931
Committed for:
General government --265,139 265,139
Public safety --9,828 9,828
Transportation --148,044 148,044
Capital projects --1,079,069 1,079,069
Unassigned 4,441,115 -(2,323) 4,438,792
Total fund balances 5,270,046 517,495 4,606,127 10,393,668
Total liabilities, deferred inflows of resources,
and fund balances 5,793,240$ 2,943,382$ 4,814,092$ 13,550,714$
June 30, 2016
Governmental Funds
Balance Sheet
Town of Taos
STATE OF NEW MEXICO
The accompanying notes are an integral part of these financial statements.
26
Exhibit B-1
Page 2 of 2
STATE OF NEW MEXICO
Town of Taos
Amounts reported for governmental activities in the Statement of Net Position
are different because:
Fund balances - total governmental funds 10,393,668$
Capital assets used in governmental activities are not financial resources
and, therefore, are not reported in the funds 53,509,216
Delinquent property taxes not collected within sixty days after year end are
not considered "available" revenues and are considered to be unavailable
revenue in the fund financial statements, but are considered revenue in the
Statement of Activities 117,200
Interest on long-term debt is not accrued in the fund financial statements
unless it is due and payable:
Accrued interest (26,716)
Deferred outflows of resources related to difference between expected and actual
experience 94,413
Deferred outflows of resources related to employer contributions subsequent to
the measurement date 807,228
Deferred inflows of resources related to change of assumptions (61,744)
Deferred inflows of resources related to changes in proportion (177,935)
Deferred inflows of resources related to net difference between projected and
actual investment earnings on pension plan investments (30,475)
Some liabilities, including bonds payable, loans and net pension payable are not due
and payable in the current period and, therefore, are not reported in the funds:
Accrued compensated absences (616,329)
Bond premiums (38,320)
Bonds payable (4,375,000)
Loans payable (2,842,487)
Net pension liability (8,044,693)
Total net position of governmental activities 48,708,026$
June 30, 2016
Governmental Funds
Reconciliation of the Balance Sheet to the Statement of Net Position
The accompanying notes are an integral part of these financial statements.
27
Exhibit B-2
Page 1 of 2
General Fund
Airport
Construction
Other
Governmental
Funds Total
Revenues
Taxes:
Property 1,123,518$ -$-$1,123,518$
Gross receipts 8,947,787 -1,759,396 10,707,183
Gasoline and motor vehicle taxes 221,057 -121,457 342,514
Lodgers taxes --1,189,267 1,189,267
Other 379,973 --379,973
Intergovernmental income:.
Federal operating grants --200,151 200,151
Federal capital grants -4,719,204 500,000 5,219,204
State operating grants 106,380 -627,575 733,955
State capital grants -352,170 584,402 936,572
Charges for services 245,075 -173,149 418,224
Licenses and fees 484,962 -125,207 610,169
Investment income 6,915 -7,093 14,008
Miscellaneous 17,647 79,719 17,742 115,108
Total revenues 11,533,314 5,151,093 5,305,439 21,989,846
Expenditures
Current:
General government 4,359,950 -877,659 5,237,609
Public safety 3,159,090 -163,792 3,322,882
Public works 921,578 4,773 194,160 1,120,511
Culture and recreation 1,438,683 -1,155,992 2,594,675
Health and welfare --186,881 186,881
Capital outlay 67,871 5,418,418 2,083,127 7,569,416
Debt service:
Principal --759,043 759,043
Interest --270,674 270,674
Total expenditures 9,947,172 5,423,191 5,691,328 21,061,691
Excess (deficiency) of revenues over
expenditures 1,586,142 (272,098) (385,889) 928,155
Other financing sources (uses)
Proceeds from issuance of debt ----
Transfers in --2,669,528 2,669,528
Transfers out (621,354) -(2,048,174) (2,669,528)
Total other financing sources (uses)(621,354) -621,354 -
Net change in fund balances 964,788 (272,098) 235,465 928,155
Fund balance - beginning of year 4,305,258 789,593 4,370,662 9,465,513
Fund balance - end of year 5,270,046$ 517,495$ 4,606,127$ 10,393,668$
For the Year Ended June 30, 2016
Governmental Funds
Statement of Revenues, Expenditures, and Changes in Fund Balances
Town of Taos
STATE OF NEW MEXICO
The accompanying notes are an integral part of these financial statements.
28
Exhibit B-2
Page 2 of 2
Amounts reported for governmental activities in the Statement of Activities
are different because:
Net change in fund balances - total governmental funds 928,155$
Governmental funds report capital outlays as expenditures. However, in
the Statement of Activities, the cost of those assets is allocated over their
estimated useful lives and reported as depreciation expense:
Capital expenditures recorded in capital outlay 7,569,416
Depreciation expense (3,760,950)
Transfer to other entity (648,990)
Revenues in the Statement of Activities that do not provide current financial
resources are not reported as revenue in the funds:
Decrease in unavailable revenue related to property taxes receivable (52,356)
Decrease in lodgers tax settlement revenue not received within the period of availability (170,583)
Governmental funds report Town pension contributions as expenditures. However
in the Statement of Activities, the cost of pension benefits earned net of employee
contributions is reported as pension expense:
Town pension contributions 807,228
Pension expense (518,553)
The issuance of long-term debt (e.g. bonds, loans, leases) provides current financial
resources to governmental funds, while the repayment of the principal of long-term
debt consumes the current financial resources of govermental funds. Neither
transaction, however, has any effect on net position. Also, governmental funds
report the effect of premiums, discounts, and similar items when debt is first issued,
whereas these amounts are deferred and amortized in the Statement of Activities:
Decrease in accrued interest 2,884
Increase in accrued compensated absences (49,946)
Amortization of bond premiums 3,864
Principal payments on bonds payable 300,000
Principal payments on loans payable 459,043
Change in net position of governmental activities 4,869,212$
Reconciliation of the Statement of Revenues, Expenditures, and Changes
in Fund Balances of Governmental Funds to the Statement of Activities
For the Year Ended June 30, 2016
STATE OF NEW MEXICO
Town of Taos
The accompanying notes are an integral part of these financial statements.
29
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30
Exhibit C-1STATE OF NEW MEXICO
Town of Taos
General Fund
Statement of Revenues, Expenditures, and Changes in Fund Balance
Budget (GAAP Basis) and Actual
For the Year Ended June 30, 2016
Variances
Favorable
(Unfavorable)
Original Final Actual Final to Actual
Revenues
Taxes:
Property taxes 1,045,871$ 1,045,871$ 1,123,518$ 77,647$
Gross receipts 8,160,703 8,860,600 8,947,787 87,187
Gas and motor vehicle 256,741 256,741 221,057 (35,684)
Other 378,101 378,101 379,973 1,872
Intergovernmental income:
State operating grants 90,000 90,000 106,380 16,380
Charges for services 295,209 295,209 245,075 (50,134)
Licenses and fees 514,745 514,745 484,962 (29,783)
Interest income 5,341 5,341 6,915 1,574
Miscellaneous 33,420 34,600 17,647 (16,953)
Total revenues 10,780,131 11,481,208 11,533,314 52,106
Expenditures
Current:
General government 4,825,285 4,707,668 4,359,950 347,718
Public safety 3,389,050 3,338,444 3,159,090 179,354
Public works 939,403 950,323 921,578 28,745
Culture and recreation 1,481,354 1,509,757 1,438,683 71,074
Capital outlay 7,800 144,629 67,871 76,758
Total expenditures 10,642,892 10,650,821 9,947,172 703,649
Excess (deficiency) of revenues over
expenditures 137,239 830,387 1,586,142 755,755
Other financing sources (uses)
Budgeted (increase) decrease in fund balance 488,682 (499,106) - 499,106
Transfers out (625,921) (331,281) (621,354) (290,073)
Total other financing sources (uses)(137,239) (830,387) (621,354) 209,033
Net change in fund balance - - 964,788 964,788
Fund balance - beginning of year - - 4,305,258 4,305,258
Fund balance - end of year -$ -$ 5,270,046$ 5,270,046$
Budgeted Amounts
The accompanying notes are an integral part of these financial statements.
31
Water and
Sewer Solid Waste Total
Assets
Current assets
Cash and cash equivalents 1,734,584$ 393,206$ 530,329$ 2,658,119$
Investments 1,320,910 249,100 75,400 1,645,410
Other taxes 277,478 - - 277,478
Customer receivables, net 482,127 286,743 110,079 878,949
Inventory 36,302 - - 36,302
Total current assets 3,851,401 929,049 715,808 5,496,258
Noncurrent assets
Restricted cash and cash equivalents 1,730,287 - 976,766 2,707,053
Restricted investments 1,027,740 - 323,496 1,351,236
Capital assets 43,188,901 1,104,796 6,375,678 50,669,375
Less: accumulated depreciation (21,036,358) (588,454) (1,919,852) (23,544,664)
Total noncurrent assets 24,910,570 516,342 5,756,088 31,183,000
Total assets 28,761,971 1,445,391 6,471,896 36,679,258
Deferred outflows of resources
Difference between expected and actual 6,599 1,416 2,473 10,488
Net difference between projected and
actual investment earnings on pension
plan investments 266 3,754 1,975 5,995
Employer contributions subsequent to the
measurement date 56,421 12,107 21,145 89,673
Total deferred outflows of resources 63,286 17,277 25,593 106,156
Total assets and deferred outflows of resources 28,825,257$ 1,462,668$ 6,497,489$ 36,785,414$
Taos Regional
Landfill
Enterprise Funds
STATE OF NEW MEXICO
Town of Taos
Statement of Net Position
Proprietary Funds
June 30, 2016
The accompanying notes are an integral part of these financial statements.
32
Exhibit D-1
Water and
Sewer Solid Waste Total
Liabilities
Current liabilities
Accounts payable 119,498$ 37,948$ 47,504$ 204,950$
Accrued payroll 22,838 4,583 9,136 36,557
Meter deposits payable 293,623 - - 293,623
Accrued compensated absences 40,859 3,699 14,506 59,064
Interfund payable 15,950 5,442 5,723 27,115
Accrued interest payable 53,006 - 2,880 55,886
Current portion of bonds payable 57,000 - - 57,000
Current portion of loans payable 219,030 - 115,009 334,039
Total current liabilities 821,804 51,672 194,758 1,068,234
Noncurrent liabilities
Accrued compensated absences 7,910 - 12,786 20,696
Accrued landfill closure costs - - 1,677,021 1,677,021
Bonds payable 1,798,600 - - 1,798,600
Loans payable 1,918,162 - 1,482,799 3,400,961
Net pension liability 555,396 108,550 202,750 866,696
Total noncurrent liabilities 4,280,068 108,550 3,375,356 7,763,974
Total liabilities 5,101,872 160,222 3,570,114 8,832,208
Deferred inflows of resources
Change in assumptions 4,221 760 1,507 6,488
Changes in proportion 12,437 2,669 4,661 19,767
Total deferred inflows of resources 16,658 3,429 6,168 26,255
Net position
Net investment in capital assets 18,159,751 516,342 2,858,018 21,534,111
Restricted for:
Debt service 2,464,404 - 349,992 2,814,396
Landfill - - 950,270 950,270
Unrestricted 3,082,572 782,675 (1,237,073) 2,628,174
Total net position 23,706,727 1,299,017 2,921,207 27,926,951
Total liabilities, deferred inflows of resources, and
net position 28,825,257$ 1,462,668$ 6,497,489$ 36,785,414$
Taos Regional
Landfill
Enterprise Funds
The accompanying notes are an integral part of these financial statements.
33
Exhibit D-2
Total
Operating revenues
Charges for services 3,226,516$ 1,450,666$ 1,255,657$ 5,932,839$
Total operating revenues 3,226,516 1,450,666 1,255,657 5,932,839
Operating expenses
Personnel services 654,657 141,222 270,456 1,066,335
Contractual services 1,199,572 812,755 297,091 2,309,418
Supplies 130,507 9,022 5,542 145,071
Repairs and maintenance 67,216 49,577 84,976 201,769
Utilities 347,832 283,005 7,865 638,702
Depreciation 1,588,910 58,315 161,263 1,808,488
Other costs 218,555 65,857 79,345 363,757
Total operating expenses 4,207,249 1,419,753 906,538 6,533,540
Operating income (loss)(980,733) 30,913 349,119 (600,701)
Non-operating revenues (expenses)
Gross receipts taxes 691,685 - - 691,685
Interest expense (135,174) - (26,571) (161,745)
Interest income 7,423 - 6,971 14,394
Miscellaneous income (expense)3,722 16,442 2 20,166
Total non-operating revenues (expenses)567,656 16,442 (19,598) 564,500
Income (loss)(413,077) 47,355 329,521 (36,201)
Change in net position (413,077) 47,355 329,521 (36,201)
Net position - beginning 24,119,804 1,251,662 2,591,686 27,963,152
Net position - ending 23,706,727$ 1,299,017$ 2,921,207$ 27,926,951$
Town of Taos
Statement of Revenues, Expenses, and Changes in Net Position
Proprietary Funds
For the Year Ended June 30, 2016
STATE OF NEW MEXICO
Taos Regional
Landfill
Enterprise Funds
Water and
Sewer Solid Waste
The accompanying notes are an integral part of these financial statements.
34
Exhibit D-3
Total
Cash flows from operating activities
Cash received from user charges 3,019,370$ 1,326,428$ 1,286,083$ 5,631,881$
Cash payments to employees for services (658,340) (144,358) (262,033) (1,064,731)
Cash payments to suppliers for goods and services (2,116,474) (1,198,507) (514,695) (3,829,676)
Net cash provided (used) by operating activities 244,556 (16,437) 509,355 737,474
Cash flows from noncapital financing activities
Gross receipts taxes 691,685 --691,685
Miscellaneous income 3,722 16,442 2 20,166
Payments for noncurrent accrued compensated
absences (3,685) -(9,998) (13,683)
Interfund advances (payments) (170) (39)568 359
Net cash provided (used) by noncapital
financing activities 691,552 16,403 (9,428) 698,527
Cash flows from capital and related financing activities
Interest paid (123,477) -(25,799) (149,276)
Proceeds from issuance of long-term debt --1,376,045 1,376,045
Principal payments on long-term debt (219,197) -(123,496) (342,693)
Acquisition of capital assets (514,295) (24,800) (2,099,793) (2,638,888)
Net cash (used) provided by capital and
related financing activities (856,969) (24,800) (873,043) (1,754,812)
Cash flows from investing activities
Purchases of investments (4,227) --(4,227)
Interest on investments 7,423 -6,971 14,394
Net cash provided by investing activities 3,196 -6,971 10,167
Net (decrease) increase in cash and cash equivalents 82,335 (24,834) (366,145) (308,644)
Cash and cash equivalents - beginning of year 4,410,276 418,040 2,196,736 7,025,052
Cash and cash equivalents - end of year 4,492,611$ 393,206$ 1,830,591$ 6,716,408$
Reconciliation of operating income (loss) to
net cash provided by operating activities:
Operating income (loss) (980,733)$ 30,913$ 349,119$ (600,701)$
Adjustments to reconcile operating income (loss) to
net cash provided by operating activities:
Depreciation 1,588,910 58,315 161,263 1,808,488
Net pension expense (19,681) (5,631) (8,091) (33,403)
Deferred outflows (1,409) (303) (528) (2,240)
Changes in assets and liabilities:
Receivables (207,146) (123,935) 30,426 (300,655)
Inventory 9,418 -9,418
Accounts payable (173,005) 21,709 (39,876) (191,172)
Accrued payroll expenses 6,983 1,124 2,536 10,643
Current accrued compensated absences 10,424 1,371 14,506 26,301
Meter deposits 10,795 --10,795
Net cash provided (used) by operating activities 244,556$ (16,437)$ 509,355$ 737,474$
STATE OF NEW MEXICO
Town of Taos
Proprietary Funds
Water and
Sewer Solid Waste
Statement of Cash Flows
For the Year Ended June 30, 2016
Enterprise Funds
Taos Regional
Landfill
The accompanying notes are an integral part of these financial statements.
35
Exhibit E-1
Assets
Cash 13,615$
Investments 60,000
Total assets 73,615$
Liabilities
Deposits payable 73,232$
Due to other entities 383
Total liabilities 73,615$
Statement of Fiduciary Assets and Liabilities - Agency Funds
Town of Taos
STATE OF NEW MEXICO
June 30, 2016
The accompanying notes are an integral part of these financial statements.
36
STATE OF NEW MEXICO
Town of Taos
Notes to the Financial Statements
June 30, 2016
NOTE 1. Summary of Significant Accounting Policies
The Town of Taos (the Town) was incorporated in 1934. The Town operates under a Council-Mayor form of
government and provides the following services as authorized by its charter: public safety (police and fire),
highways and streets, public utilities (water, wastewater, and solid waste), health and social services, culture-
recreation, education, public improvements, planning and zoning, and general administrative services.
The Town of Taos is a body politic and corporate under the name and form of government selected by its qualified
electors. The Town may:
1. Sue or be sued;
2. Enter into contracts and leases;
3. Acquire and hold property, both real and personal;
4. Have common seal, which may be altered at pleasure;
5. Exercise such other privileges that are incident to corporations of like character or degree that are not
inconsistent with the laws of New Mexico;
6. Protect generally the property of its municipality and its inhabitants;
7. Preserve peace and order within the municipality; and
8. Establish rates for services provided by municipal utilities and revenue-producing projects, including
amounts which the governing body determines to be reasonable in the operation of similar facilities.
This summary of significant accounting policies of the Town is presented to assist in the understanding of Town’s
financial statements. The financial statements and notes are the representation of Town’s management who is
responsible for their integrity and objectivity. The financial statements of the Town have been prepared in
conformity with accounting principles generally accepted in the United States of America (GAAP) as applied to
government units.
During the year ended June 30, 2016, the Town adopted GASB Statements No. 72, Fair Value Measurement and
Application, a portion of No 73, Accounting and Financial Reporting for Pensions and Related Assets that are not
within the Scope of GASB Statement 68, and Amendments to Certain Provisions of GASB Statements 67 and 68,
No. 76, The Hierarchy of Generally Accepted Accounting Principles for State and Local Governments, No. 79,
Certain External Investment Pools and Pool Participants and No. 82 Pension Issues-an amendment of GASB
Statement No. 67, No. 68, and No.73. These five Statements are required to be implemented as of June 30, 2016, if
applicable.
GASB Statement No. 72 addresses accounting and financial reporting issues related to fair value measurements.
The definition of fair value is the price that would be received to sell an asset or paid to transfer a liability in an
orderly transaction between market participants at the measurement date. This Statement provides guidance for
determining a fair value measurement for financial reporting purposes. This Statement also provides guidance for
applying fair value to certain investments and disclosures related to all fair value measurements. The requirements
of this Statement will enhance comparability of financial statements among governments by requiring
measurement of certain assets and liabilities at fair value using a consistent and more detailed definition of fair
value and accepted valuation techniques. This Statement also will enhance fair value application guidance and
related disclosures in order to provide information to financial statement users about the impact of fair value
measurements on a government’s financial position.
37
STATE OF NEW MEXICO
Town of Taos
Notes to the Financial Statements
June 30, 2016
NOTE 1. Summary of Significant Accounting Policies (continued)
GASB Statement No. 73 establishes accounting and financial reporting standards for defined benefit pensions and
defined contribution pensions that are not provided to employees of state and local government employers and are
not within the scope of Statement 68. A portion of this pronouncement is effective for June 30, 2016 year end and
a portion is effective for June 30, 2017 year end. Effective for June 30, 2016 are the amendments for Statement
No.s 67 and 68 and assets accumulated for pensions not administered as trusts. The amendments of this
pronouncement clarifies application of certain provisions of GASB 67 and 68 with regards to the following issues:
(1) Information that is required to be presented as notes to the 10-year schedules of RSI about investment-related
factors that significantly affect trends in reported amounts; (2) Accounting and financial reporting for separately
financed specific liabilities of individual employers and nonemployer contributing entities for defined benefit
pensions; and (3) Timing of employer recognition of revenue for the support of nonemployer contributing entities
not in a special funding situation.
GASB Statement No. 73 establishes accounting and financial reporting standards for defined benefit pensions and
defined contribution pensions that are not provided to employees of state and local government employers and are
not within the scope of Statement 68. A portion of this pronouncement is effective for June 30, 2016 year end and
a portion is effective for June 30, 2017 year end. Effective for June 30, 2016 are the amendments for Statement
No.s 67 and 68 and assets accumulated for pensions not administered as trusts. The amendments of this
pronouncement clarifies application of certain provisions of GASB 67 and 68 with regards to the following issues:
(1) Information that is required to be presented as notes to the 10-year schedules of RSI about investment-related
factors that significantly affect trends in reported amounts; (2) Accounting and financial reporting for separately
financed specific liabilities of individual employers and nonemployer contributing entities for defined benefit
pensions; and (3) Timing of employer recognition of revenue for the support of nonemployer contributing entities
not in a special funding situation.
In addition, effective for June 30, 2016 year ends, the requirements of this Statement extend the approach to
accounting and financial reporting established in Statement 68 to all pensions, with modifications as necessary to
reflect that, for accounting and financial reporting purposes, any assets accumulated for pensions that are provided
through pension plans that are not administered through trusts that meet the criteria specified in Statement 68
should not be considered pension plan assets. It also requires that information similar to that required by Statement
68 be included in notes to financial statements and required supplementary information by all similarly situated
employers and nonemployer contributing entities.
The objective of GASB Statement No. 76 is to identify-in the context of the current governmental financial
reporting environment-the hierarchy of generally accepted accounting principles (GAAP). The “GAAP hierarchy”
consists of the sources of accounting principles used to prepare financial statements of state and local
governmental entities in conformity with GAAP and the framework for selecting those principles. This statement
reduces the GAAP hierarchy to two categories of authoritative GAAP and addresses the use of authoritative and
nonauthoritative literature in the event that the accounting treatment for a transaction or other event is not specified
within a source of authoritative GAAP. The requirements in this Statement improve financial reporting by (1)
raising the category of GASB Implementation Guides in the GAAP hierarchy, thus providing the opportunity for
broader public input on implementation guidance; (2) emphasizing the importance of analogies to authoritative
literature when the accounting treatment for an event is not specified in authoritative GAAP; and (3) requiring the
consideration of consistency with the GASB Concepts Statements when evaluating accounting treatments specified
in nonauthoritative literature. As a result, governments will apply financial reporting guidance with less variation,
which will improve the usefulness of financial statement information for making decisions and assessing
accountability and enhance the comparability of financial statement information among governments.
38
STATE OF NEW MEXICO
Town of Taos
Notes to the Financial Statements
June 30, 2016
NOTE 1. Summary of Significant Accounting Policies (continued)
GASB Statement No. 79 addresses accounting and financial reporting for certain external investment pools and
pool participants. Specifically, it establishes criteria for an external investment pool to qualify for making the
election to measure all of its investments at amortized cost for financial reporting purposes. An external
investment pool qualifies for that reporting if it meets all of the applicable criteria established in this Statement.
The specific criteria address (1) how the external investment pool transacts with participants; (2) requirements for
portfolio maturity, quality, diversification, and liquidity; and (3) calculation and requirements of a shadow price.
Significant noncompliance prevents the external investment pool for measuring all of its investments at amortized
cost for financial reporting purposes. Professional judgement is required to determine if instances of
noncompliance with the criteria established by this Statement during the reporting period, individually or in the
aggregate, were significant. This Statement will enhance comparability of financial statements among
governments by establishing specific criteria used to determine whether a qualifying external investment pool may
elect to use an amortized cost exception to fair value measurement. Those criteria will provide for qualifying
external investment pools and participants in those pools with consistent application of an amortized cost-based
measurement for financial reporting purposes. That measurement approximates fair value and mirrors the
operations of external investment pools that transact with participants at a stable net asset value per share.
The objective of GASB Statement No. 82 is to address certain issues that have been raised with respect to
Statements No. 67, Financial Reporting for Pension Plans, No. 68, Accounting and Financial Reporting for
Pensions, and No. 73, Accounting and Financial Reporting for Pensions and Related Assets That Are Not within
the Scope of GASB Statement 68, and Amendments to Certain Provisions of GASB Statements 67 and 68.
Specifically, this Statement addresses issues regarding (1) the presentation of payroll-related measures in required
supplementary information; (2) the selection of assumptions and the treatment of deviations from the guidance in
an Actuarial Standard of Practice for financial reporting purposes, and; (3) the classification of payments made by
employers to satisfy employee (plan member) contribution requirements.
A. Financial Reporting Entity
The financial reporting entity consists of (a) the primary government, (b) organizations for which the
primary government is financially accountable and (c) other organizations for which the nature and
significance of their relationship with the primary government are such that exclusion would cause the
reporting entity’s financial statements to be misleading or incomplete.
In evaluating how to define the Town, for financial reporting purposes, management has considered all
potential component units. The decision to include any potential component units in the financial
reporting entity was made by applying the criteria set forth in GASB Statement No. 14, as amended by
GASB Statement No. 39 and GASB Statement No. 61. Blended component units, although legally
separate entities, are in substance part of the government’s operations. Each discretely presented
component unit is reported in a separate column in the government-wide financial statements to
emphasize that it is legally separate from the government.
The basic-but not the only-criterion for including a potential component unit within the reporting entity is
the governing body’s ability to exercise oversight responsibility. The most significant manifestation of
this ability is financial interdependency. Other manifestations of the ability to exercise oversight
responsibility include, but are not limited to, the selection of governing authority, the designation of
management, the ability to significantly influence operations, and accountability for fiscal matters.
39
STATE OF NEW MEXICO
Town of Taos
Notes to the Financial Statements
June 30, 2016
NOTE 1. Summary of Significant Accounting Policies (continued)
A. Financial Reporting Entity (continued)
A second criterion used in evaluating potential component units is the scope of public service.
Application of this criterion involves considering whether the activity benefits the government and/or its
citizens.
A third criterion used to evaluate potential component units for inclusion or exclusion from the reporting
entity is the existence of special financing relationships, regardless of whether the government is able to
exercise oversight responsibilities. Finally, the nature and significance of a potential component unit to
the primary government could warrant its inclusion within the reporting entity.
Based upon the application of these criteria, the Town has no component units, and is not a component
unit of another governmental agency.
B. Government-wide and fund financial statements
The government-wide financial statements (i.e., the statement of net position and the statement of
activities) report information on all of the nonfiduciary activities of the primary government. For the
most part, the effect of interfund activity has been removed from these statements. Governmental
activities, which normally are supported by taxes and intergovernmental revenues, are reported separately
from business-type activities, which rely to a significant extent on fees and charges for support.
The Statement of Net Position and the Statement of Activities were prepared using the economic
resources measurement focus and the accrual basis of accounting. Revenues, expenses, gains, losses,
assets and liabilities resulting from exchange-like transactions are recognized when the exchange takes
place. Revenues, expenses, gains, losses, assets and liabilities resulting from non-exchange transactions
are recognized in accordance with the requirements of GASB Statement No. 33, Accounting and
Financial Reporting for Non-exchange Transactions.
In the government-wide Statement of Net Position, both the governmental and business-type activities
columns (a) are presented on a consolidated basis by column, (b) and are reported on a full accrual,
economic resource basis, which recognizes all long-term assets and receivables as well as long-term debt
and obligations. The Town’s net position is reported in three parts – net investment in capital assets;
restricted net position; and unrestricted net position.
The statement of activities demonstrates the degree to which the direct expenses of a given function or
segments are offset by program revenues. Direct expenses are those that are clearly identifiable with a
specific function or segment. Program revenues include 1) charges to customers or applicants who
purchase, use, or directly benefit from goods, services, or privileges provided by a given function or
segment and 2) grants and contributions that are restricted to meeting the operational or capital
requirements of a particular function or segment. Taxes and other items not properly included among
program revenues are reported instead as general revenues.
Separate financial statements are provided for governmental funds, proprietary funds and fiduciary funds,
even though the latter are excluded from the government-wide financial statements. Major individual
governmental funds and major individual enterprise funds are reported as separate columns in the fund
financial statements.
The government-wide financial statements are reported using the economic resources measurement focus
and the accrual basis of accounting, as are the proprietary fund and fiduciary fund financial statements.
Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of
the timing of related cash flows. Property taxes, net of estim ated refunds, are recognized as revenues in
the year for which they are levied. Grants and similar items are recognized as revenue as soon as all
eligibility requirements imposed by the provider have been met.
40
STATE OF NEW MEXICO
Town of Taos
Notes to the Financial Statements
June 30, 2016
NOTE 1. Summary of Significant Accounting Policies (continued)
C. Measurement focus, basis of accounting, and financial statement presentation
Governmental fund financial statements are reported using the current financial resources measurement
focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both
measurable and available. Revenues are considered to be available when they are collectible within the
current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the
government considers revenues to be available if they are collected within 60 days of the end of the
current fiscal period. Expenditures generally are recorded when a liability is incurred, as under accrual
accounting. However, debt service expenditures, as well as expenditures related to compensated absences
and claims and judgments, are recorded only when payment is due.
Property taxes, franchise taxes, licenses and interest associated with the current fiscal period are all
considered to be susceptible to accrual and so have been recognized as revenues of the current fiscal
period, subject to the availability criterion. Sales and use taxes are classified as derived tax revenues and
are recognized as revenue when the underlying exchange takes place and the revenues are measurable and
available. Grants and similar items are recognized as revenue as soon as all eligibility requirements
imposed by the provider have been met, subject to the availability criterion. Only the portion of special
assessments receivable due within the current fiscal period is considered to be susceptible to accrual as
revenue of the current period. All other revenue items are considered to be measurable and available only
when cash is received by the government.
The Town reports the following major governmental funds:
The General Fund is the government’s primary operating fund. It accounts for all financial
resources of the general government, except those required to be accounted for in another fund.
This fund includes state shared gross receipts tax income fund and state shared gas tax income
funds.
The Airport Construction Capital Projects Fund was created to receive proceeds from federal
and state grants for the purpose of financing improvements to the Taos Municipal Airport.
Authority is Town Council resolution.
The Town reports its proprietary funds as major funds. Proprietary funds include:
The Water and Sewer Fund is used to account for the activities of the Town’s water and sewer
operations.
The Solid Waste Fund accounts for the provision of solid waste services to the resi dents of the
Town and some residents of Taos County. All activities necessary to provide such services are
accounted for in this fund, including, but not limited to administration, operations, maintenance,
financing and related debt service, and billing and collection.
The Taos Regional Landfill Fund is used to account for the activities of the Taos Regional
Landfill including debt repayments, closure and post-closure care estimates as well as operations
and administration.
Additionally, the Town reports the following fund type:
The Fiduciary Fund is purely custodial (assets equal liabilities) and does not involve the
measurement of results of operations. This fund accounts for assets held by the Town as a
trustee for the judicial system bonds and recreational events.
41
STATE OF NEW MEXICO
Town of Taos
Notes to the Financial Statements
June 30, 2016
NOTE 1. Summary of Significant Accounting Policies (continued)
C. Measurement focus, basis of accounting, and financial statement presentation (continued)
As a general rule, the effect of interfund activity has been el iminated from the government-wide financial
statements. Exceptions to this general rule are payments-in-lieu of taxes and other charges between the
government’s enterprise funds and various other functions of the government. Elimination of these
charges would distort the direct costs and program revenues reported in the Statement of Activities. The
General Fund, Lodgers Tax Fund, Water and Sewer Fund and the Taos Regional Landfill fund are
combined with funds that have identical activities for financial statement reporting.
Program revenues included in the Statement of Activities are derived directly from the program itself or
from parties outside the Town’s taxpayers or citizenry, as a whole; program revenues reduce the cost of
the function to be financed from the Town’s general revenues. Program revenues are categorized as (a)
charges for services, which include revenues collected for fees and use of Town facilities, etc., (b)
program-specific operating grants, which includes revenues received from state and federal sources such
as small cities assistance to be used as specified within each program grant agreement, and (c) program-
specific capital grants and contributions, which include revenues from state sources to be used for capital
projects. Internally dedicated resources are reported as general revenues rather than as program revenues.
Likewise, general revenues include all taxes.
The Town reports all direct expenses by function in the Statement of Activities. Direct expenses are
those that are clearly identifiable with a function. The Town does not currently employ indirect cost
allocation systems. Depreciation expense is specifically identified by function and is included in the
direct expense of each function. Interest on general long-term debt is considered an indirect expense and
is reported separately on the Statement of Activities.
Proprietary funds distinguish operating revenues and expenses from non-operating items. Operating
revenues and expenses generally result from providing services in connection with the fund’s principal
ongoing operations. The principal operating revenue of the Town’s enterprise fund is charges for services
for the Town’s utilities. Operating expenses for enterprise funds include the cost of services,
administrative expenses and depreciation on capital assets. All revenues and expenses not meeting this
definition are reported as non-operating revenues and expenses.
When both restricted and unrestricted resources are available for use, it is the Town’s policy to use
restricted resources first, then unrestricted resources as they are needed.
D. Assets, Deferred Outflows of Resources, Liabilities, Deferred Inflows of Resources and Net Position or
Equity
Deposits and Investments: The Town’s cash and cash equivalents are considered to be cash on hand,
demand deposits and short-term investments with original maturities of three months or less from the date
of acquisition. For purposes of the Statement of Cash Flows, cash and cash equivalents represent cash
and cash equivalents, restricted cash and cash equivalents and restricted investments (cash held by New
Mexico Finance Authority.)
State statutes authorize the Town to invest in Certificates of Deposit, obligations of the U.S. Government,
and the State Treasurer’s Investment Pool.
Investments for the Town are reported at fair value. The State Treasurer’s Pool operates in accordance
with appropriate state laws and regulations. The reported value of the pool is the same as the fair value of
the pool shares.
42
STATE OF NEW MEXICO
Town of Taos
Notes to the Financial Statements
June 30, 2016
NOTE 1. Summary of Significant Accounting Policies (continued)
D. Assets, Deferred Outflows of Resources, Liabilities, Deferred Inflows of Resources and Net Position or
Equity (continued)
Receivables and Payables: Interfund activity is reported as loans, services provided, reimbursements or
transfers. Loans are reported as interfund receivables and payables as appropriate and are subject to
elimination upon consolidation. Services provided, deemed to be at market or near market rates, are
treated as revenues and expenditures/expenses. Reimbursements are when one fund incurs a cost, charges
the appropriate benefiting fund and reduces its related cost as a reimbursement. All other interfund
transactions are treated as transfers. Transfers between governmental or between proprietary funds are
netted as part of the reconciliation to the government-wide financial statements.
Advances between funds, as reported in the fund financial statements, are offset by a fund balance reserve
account in applicable governmental funds to indicate that they are not available for appropriation and are
not expendable available financial resources in the event they are not received within 60 days of year end.
All receivables are reported at their gross value and, where appropriate, are reduced by the estimated
portion that is expected to be uncollectible. The Town estimates the allowance for uncollectible accounts
based off the days delinquent. The Town has estimated all accounts that are greater than 120 days to be
uncollectible. In the government-wide and governmental fund financial statements, delinquent property
taxes are recorded when levied. Property taxes are considered to be 100% collectible.
Property taxes are levied on November 1 based on the assessed value of property as listed on the previous
January 1 and are due in two payments by November 10th and April 10th. Property taxes uncollected
after November 10th and April 10th are considered delinquent and the Town may assess penalties and
interest. The taxes attach as an enforceable lien on property thirty (30) days thereafter, at which time they
become delinquent. Property taxes are collected by Taos County and remitted monthly to the Town.
Inventory: The Town’s method of accounting for inventory is the consumption method. Under the
consumption approach, governments report inventories they purchase as an asset and defer recognition of
the expenditures until the period in which the inventories actually are consumed. The cost of inventory
is recorded as expenditures at the time individual inventory items are consumed.
Restricted Assets: Restricted assets consist of those funds expendable for operating purposes but
restricted by donors or other outside agencies as to the specific purpose for which they may be used and
restricted for future debt service payments, capital projects, meter deposits payable, and the Town’s
landfill liability.
Capital Assets: Capital assets, which include property, plant, equipment, and infrastructure assets (e.g.,
roads, bridges, sidewalks, and similar items), are reported in the applicable governmental or business-type
activities columns in the government-wide financial statements. Capital assets are defined by the
government as assets with an initial, individual cost of more than $5,000 (amount not rounded) and an
estimated useful life in excess of one year. Such assets are recorded at historical cost or estimated
historical cost if purchased or constructed. Pursuant to the implementation of GASB Statement No. 34,
the historical costs of infrastructure assets (retroactive to 1979) are included as part of the governmental
capital assets reported in the government wide statements. Information Technology Equipment including
software is being capitalized and included in machinery and equipment in accordance with NMAC
2.20.1.9 C (5). Donated capital assets are recorded at estimated fair market value at the date of donation.
The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend
assets lives are not capitalized. Library books and periodicals are estimated to have a useful life of less
than one year or are under the capitalization threshold and are expensed when purchased.
43
STATE OF NEW MEXICO
Town of Taos
Notes to the Financial Statements
June 30, 2016
NOTE 1. Summary of Significant Accounting Policies (continued)
D. Assets, Deferred Outflows of Resources, Liabilities, Deferred Inflows of Resources and Net Position or
Equity (continued)
Major outlays for capital assets and improvements are capitalized as projects are constructed. Interest
incurred during the construction phase of capital assets of business-type activities is included as part of
the capitalized value of the assets constructed. There was no interest expense capitalized by the Town
during the current fiscal. No interest was included as part of the cost of capital assets under construction.
Property, plant, and equipment of the primary government are depreciated using the straight line method
over the following estimated useful lives:
Assets Years
Land improvements 20
Buildings and improvements 10-50
Machinery and equipment 5-25
Infrastructure 10-50
Accrued Expenses: Accrued expenses are comprised of the payroll expenditures based on amounts
earned by the employees through June 30, 2016, along with applicable PERA, Retiree Health Care, FICA
and Medicare accruals.
Deposits Held in Trust For Others: Deposits held in trust for others consists of security deposits for the
Civic Center as of June 30, 2016.
Deferred Outflows of Resources: In addition to assets, the balance sheet reports a separate section for
deferred outflows of resources. This separate financial statement element represents a use of net position
that applies to a future period(s) and so will not be recognized as an outflow of resources (expenditure)
until that time. The Town has three types of items that qualify for reporting in this category in the
governmental and business-type activities. Accordingly, the items – Difference between expected and
actual experience of $104,901, net difference between projected and actual investment earnings of
$5,995, and employer contributions subsequent to measurement date of $896,901, have been reported as a
deferred outflow of resources These amounts are reported in the Statement of Net Position. These
amounts will directly reduce the net pension liability in future periods.
Deferred Inflows of Resources: In addition to liabilities, the balance sheet reports a separate section for
deferred inflows of resources. This separate financial statement element represents an acquisition of net
position that applies to a future period(s) and so will not be recognized as an inflow of resources
(revenue) until that time. Revenue must be susceptible to accrual (measurable and available to finance
expenditures of the current fiscal period) to be recognized. If assets are recognized in connection with a
transaction, but those assets are not yet available to finance expenditures of the current fiscal period, then
the assets must be offset by a corresponding liability for deferred inflows of resources. The Town has one
type of deferred inflow which arise under the modified accrual basis of accounting that qualify for
reporting in this category. Accordingly, the item, unavailable revenue - property taxes is reported only in
the governmental funds balance sheet. This amount is deferred and recognized as an inflow of resource in
the period that the amount becomes available. The Town has recorded $117,200 related to property taxes
considered “unavailable”. In addition, the Town has three types of items present on the Statement of Net
Position for both the governmental and business-type activities, which arise due to the implementation of
GASB 68 and the related net pension liability. Accordingly, the items, change of assumptions of
$68,232, changes in proportion of $197,702, and net difference between projected and actual investment
earnings on pension plan investments of $30,475, are reported on the Statement of Net Position. These
amounts are reported as a deferred inflow and amortized into pension expense in future periods.
44
STATE OF NEW MEXICO
Town of Taos
Notes to the Financial Statements
June 30, 2016
NOTE 1. Summary of Significant Accounting Policies (continued)
D. Assets, Deferred Outflows of Resources, Liabilities, Deferred Inflows of Resources and Net Position or
Equity (continued)
Pensions: For purposes of measuring the net pension liability, deferred outflows of resources and
deferred inflows of resources related to pensions, and pension expense, information about the fiduciary
net position of the Public Employees Retirement Association (P.E.R.A) and additions to/deductions from
P.E.R.A’s fiduciary net position have been determined on the same basis as they are reported by P.E.R.A,
on the economic resources measurement focus and accrual basis of accounting. For this purpose, benefit
payments (including refunds of employee contributions) are recognized when due and payable in
accordance with the benefit terms. Investments are reported at fair value.
Compensated Absences: The Town’s employees earn personal leave at a rate of 22 to 27 days per year
based on years of service. Employees can carry over unused personal leave each year with a cap of 500
hours.
Vested or accumulated vacation leave that is expected to be liquidated with expendable available
financial resources is reported as an expenditure and a fund liability of the governmental or proprietary
fund that will pay it. In prior years, substantially all of the related expenditures have been liquidated by
the general fund. Amounts of vested or accumulated vacation leave that are not expected to be liquidated
with expendable available financial resources are reported in the government-wide statement of net
position.
Long-term Obligations: In the government-wide financial statements, and proprietary fund types in the
fund financial statements, long-term debt and other long-term obligations are reported as liabilities in the
applicable governmental activities, business-type activities, or proprietary fund type statement of net
position. Bond premiums and discounts, are deferred and amortized over the life of the bonds using the
effective interest method or the straight-line method if the difference is minimal. Bonds payable are
reported net of the applicable bond premium or discount. For f und financial reporting, bond premiums
and discounts, as well as issuance costs, are recognized in the period the bonds are issued. Bond proceeds
are reported as another financing source net of the applicable premium or discount. Issuance costs, even
if withheld from the actual net proceeds received, are reported as debt service expenditures.
Fund Balance Classification Policies and Procedures: In the governmental fund financial statements,
fund balance is reported in five classifications:
Nonspendable – This classification includes amounts that cannot be spent because they are either (a) not
in spendable form, for example, inventories, prepaid amounts, long term amount of loans and note
receivable; or (b) legally or contractually required to be maintained intact, for example, debt service
reserves. The Town has no nonspendable fund balance at June 30, 2016.
Restricted – This classification includes amounts that are restricted to a specific purpose. Fund balances
are restricted when constraints placed on the use of resources are either: (a) externally imposed by
creditors (such as debt covenants) grantors, contributors, or laws or regulations of other governments; (b)
enabling legislation, as the term is used authorizes the Town to assess, levy, charge, or otherwise mandate
payment of resources and includes a legally enforceable requirement that those resources be used only for
the specific purposes stipulated in the legislation. The Town has $4,452,796 in restricted fund balances at
June 30, 2016.
Committed – This classification includes amounts that can only be used for specific purposes to
constraints imposed by formal action of the highest level of Authority, the Town Council. Those
committed amounts cannot be used for any other purpose unless the Council removes or changes the
specific use by taking the same type of action (for example, resolution or ordinance) it employed to
previously commit those amounts. The Town has $1,502,080 in committed funds at June 30, 2016 for
Town funded capital projects. The Town does not designate fund balances at year end for subsequent.
45
STATE OF NEW MEXICO
Town of Taos
Notes to the Financial Statements
June 30, 2016
NOTE 1. Summary of Significant Accounting Policies (continued)
D. Assets, Deferred Outflows of Resources, Liabilities, Deferred Inflows of Resources and Net Position or
Equity (continued)
Assigned – This classification includes amounts that are constrained by the Town’s intent to be used for
specific purposes, but are neither restricted nor committed and should be reported as assigned fund
balance. The Board of Town Commissioners has delegated the authority to assign amounts to be used for
specific purposes to the Town Manager and the Director of Finance. The Town had no assigned fund
balances at June 30, 2016.
Unassigned – This classification is the residual classification for the general fund. This classification
represents fund balance that has not been assigned to other funds and that has not been restricted,
committed, or assigned to specific purposes within the general fund. The general fund should be the only
fund that reports a positive unassigned fund balance amount. The Town has $4,438,792 in unassigned
fund balances at June 30, 2016.
Minimum Fund Balance Policy: The Town’s policy for maintaining a minimum amount of fund
balance for operations is to minimize any sudden and unplanned discontinuity to programs and operations
and for unforeseen contingencies. At a minimum, the budget shall ensure that the Town holds cash
reserves of 1/12th the General Fund expenditures. The amount at June 30, 2016 for the Town is
$828,931.
Net Position: Equity is classified as net position and displayed in three components:
a. Net investment in capital assets: Consists of capital assets, net of accumulated depreciation and
reduced by the outstanding balances of any bonds, mortgages, notes, or other borrowings that
are attributable to the acquisition, construction, or improvement of those assets.
b. Restricted net position: Consist of net position with constraints placed on the use either by (1)
external groups such as creditors, grantors, contributors, or laws or regulation of other
governments; or (2) law through constitutional provisions or enabling legislation. Descriptions
for the related restrictions for net position restricted for “special revenue, debt service and
capital projects” are described on pages 41 and 82-85.
c. Unrestricted net position: Net position that does not meet the definition of “restricted” or “Net
Investment in Capital Assets.”
Interfund Transactions: Quasi-external transactions are accounted for as revenues, expenditures or
expenses. Transactions that constitute reimbursements to a fund from expenditures/expenses initially
made from it that are properly applicable to another fund, are recorded as expenditures/expenses in the
reimbursing fund and as reductions of expenditures/expenses in the fund that is reimbursed.
All other interfund transactions, except quasi-external transactions and reimbursements, are reported as
transfers. Nonrecurring or non-routine permanent transfers of equity are reported as residual equity
transfers. All other interfund transfers are reported as operating transfers.
Estimates: The preparation of financial statements in conformity with accounting principles generally
accepted in the United States of America requires management to make estimates and assumptions that
affect certain reported amounts and disclosures. Accordingly, actual results could differ from those
estimates. Significant estimates in the Town’s financial statements include the allowance for
uncollectible accounts in the joint utility fund, depreciation on capital assets, the net pension liability and
related deferred outflows and inflows of resources, and the estimate for landfill closure and postclosure
costs.
46
STATE OF NEW MEXICO
Town of Taos
Notes to the Financial Statements
June 30, 2016
NOTE 2. Stewardship, Compliance and Accountability
Budgetary Information
Annual budgets of the Town are prepared prior to June 1 and must be approved by resolution of the Town
Councilors, and submitted to the Department of Finance and Administration for State approval. Once the budget
has been formally approved, any amendments must also be approved by the Town Council Members and the
Department of Finance and Administration. A separate budget is prepared for each fund. Line items within each
budget may be over-expended; however, it is not legally permissible to over-expend any budget in total by fund.
Governmental fund budgets are prepared on the GAAP basis, excluding encumbrances, and secure appropriation of
funds for only one year. Carryover funds must be re-appropriated in the budget of the subsequent fiscal year.
Proprietary fund budgets are prepared on the GAAP basis, excluding encumbrances, and secure appropriation of
funds for only one year. Carryover funds must be re-appropriated in the budget of the subsequent fiscal year. The
Town does not budget for depreciation expense, only capital outlay.
The budgetary information presented in these financial statements has been properly amended by Town Council in
accordance with the above procedures. These amendments resulted in the following changes:
Excess (deficiency)
of revenues over expenditures
Original Final
Budget Budget
Budgeted Funds:
General Fund $ 137,239 $ 830,387
Airport Construction $ (741,848) $ (742,133)
Nonmajor Governmental Funds $ (3,207,422) $ (3,101,636)
Change in net position
Budgeted Funds:
Water and Sewer $ (1,812,619) $ (1,832,790)
Solid Waste $ (89,960) $ (93,613)
Taos Regional Landfill $ (839,652) $ (618,159)
The accompanying Statements of Revenues, Expenditures and Changes in Fund Balance – Budget (GAAP Basis)
and Actual and Statements of Revenues, Expenses and Changes in Net Position- Budget (GAAP Basis) and Actual
present comparisons of the legally adopted budget with actual data on a budgetary basis.
NOTE 3. Deposits and Investments
State statutes authorize the investment of Town funds in a wide variety of instruments including certificates of
deposit and other similar obligations, state investment pool, money market accounts, and United States
Government obligations. The Town is not aware of any invested funds that did not meet the State investment
requirements as of June 30, 2016.
Deposits of funds may be made in interest or non-interest bearing checking accounts in one or more banks or
savings and loan associations within the geographical boundaries of the Town. Deposits may be made to the
extent that they are insured by an agency of the United States or collateralized as required by statute. The financial
institution must provide pledged collateral for 50% of the deposit amount in excess of the deposit insurance.
47
STATE OF NEW MEXICO
Town of Taos
Notes to the Financial Statements
June 30, 2016
NOTE 3. Deposits and Investments (continued)
The rate of interest in non-demand interest-bearing accounts shall be set by the State Board of Finance, but in no
case shall the rate of interest be less than one hundred percent of the asked price on United States treasury bills of
the same maturity on the day of deposit.
Excess funds may be temporarily invested in securities which are issued by the State or by the United States
government, or by their departments or agencies, and which are either direct obligations of the State or the United
States or are backed by the full faith and credit of those governments.
All of the Town’s accounts at located an insured depository institution, including all noninterest-bearing
transaction accounts, which will be insured by the FDIC up to the standard maximum deposit insurance amount of
$250,000.
Custodial Credit Risk – Deposits Custodial credit risk is the risk that in the event of a bank failure, the Town’s
deposits may not be returned to it. The Town does not have a deposit policy for custodial credit risk, other than
following state statutes as set forth in the Public Money Act (Section 6-10-1 to 6-10-63, NMSA 1978). At June 30,
2016, $11,862,864 of the Town’s deposits of $12,612,864 was exposed to custodial credit risk. $8,790,108 was
uninsured and collateralized by collateral held by the pledging bank’s trust department, not in the Town’s name,
and $3,072,756 was uninsured and uncollateralized.
Amount of deposits 5,940,374$ 6,672,490$ 12,612,864$
FDIC Coverage (500,000) (250,000) (750,000)
Total uninsured public funds 5,440,374 6,422,490 11,862,864
Collateralized by securities held by
pledging institutions or by its trust
department or agent in other than
the Town's name 5,440,374 3,349,734 8,790,108
Uninsured and uncollateralized -$ 3,072,756$ 3,072,756$
Collateral requirement
(50% of uninsured funds)2,720,187$ 3,211,245$ 5,931,432$
Pledged Collateral 6,300,000 3,349,734 9,649,734
Over (Under) collateralized 3,579,812$ 138,489$ 3,718,301$
TotalCentinel BankUS Bank
The collateral pledged is listed on Schedule IV in this report. The types of collateral allowed are limited to direct
obligations of the United States Government and all bonds issued by any agency, district or political subdivision of
the State of New Mexico.
48
STATE OF NEW MEXICO
Town of Taos
Notes to the Financial Statements
June 30, 2016
NOTE 3. Deposits and Investments (continued)
Reconciliation to the Statement of Net Position:
Cash and cash equivalents per Exhibit A-1 2,715,253$
Restricted cash and cash equivalents per Exhibit A-1 1,715,602
Restricted investments per Exhibit A-1 2,726,863
Agency funds cash per Exhibit E-1 140,000
Subtotal 7,297,718$
Plus: Certificates of deposits (maturity > 3 months) 170,500
Plus: outstanding checks 1,749,353
Less: deposits in transit (304,041)
Less: U.S. Treasury Money Market Mutual Funds (1,932,347)
Less: New Mexico State Treasurer Debt Service (11,612)
Less: petty cash (1,850)
Bank balance of deposits 6,967,721$
Investments
The Town invests excess cash in the State Treasurer Local Government Investment Pool. The New Mexico Local
Government Investment Pool’s (LGIP) investments are valued at fair value based on quoted market prices as of the
valuation date. The LGIP is not SEC registered. The New Mexico State Treasurer is authorized to invest the
short-term investment funds, with the advice and consent of the State Board of Finance, in accordance with
Sections 6-10-10(I) through 6-10-10(P) and Sections 6-10-10.1(A) and (E), NMSA 1978. The pool does not have
unit shares. Per Section 6-10-10. (F), NMSA 1978, at the end of each month all interest earned is distributed by
the State Treasurer to the contributing entities in amounts directly proportionate to the respective amounts
deposited in the fund and the length of time the fund amounts were invested. Participation in the LGIP is
voluntary.
As of June 30, 2016, the Town’s investment in the New Mexico LGIP was rated as AAAm by Standard & Poor’s.
Additionally, the Town has investments held in U.S. Treasury Money Market Mutual Funds at the Bank of
Albuquerque in connection with New Mexico Finance Authority (NMFA) loans. Also, the Town has investments
which are managed by NMFA, on deposit with the State Treasurer’s office, in NMFA’s name for the benefit of the
Town.
The Town’s investments at June 30, 2016 include the following:
Investments Rated
New Mexico Local Government Investment
Pool AAAm
WAM (R) 44 day and WAM
(F)77 day 4,081,744$
U.S. Treasury Money Market Mutual Funds Aaa **>365 Days 1,932,347
$ 6,014,091
Weighted Average Maturity Fair Value
** Based Moody’s rating
49
STATE OF NEW MEXICO
Town of Taos
Notes to the Financial Statements
June 30, 2016
NOTE 3. Deposits and Investments (continued)
At June 30, 2016 the Town had $110,500 of certificates of deposit classified as governmental activities
investments at Exhibit A-1 and $60,000 of certificates of deposit in Agency funds at Exhibit E-1. The Town has
funds which are managed by NMFA which are considered restricted cash and cash equivalents and restricted
investments. Of the $1,932,347 noted above $1,715,602 is considered restricted investments as these are invested
by NMFA in US Treasury notes and $216,745 is considered a cash and cash equivalent per Exhibit A-1.
For purposes of cash flows at Exhibit D-3 ending cash is considered to be cash and cash equivalents, restricted
cash and cash equivalents, and restricted investments.
Interest Rate Risk – Investments. The Town does not have a formal policy limiting investment maturities that
would help manage its exposure to fair value losses from increasing interest rates.
Concentration of Credit Risk – Investments. For an investment, concentration of credit risk is when any one issuer
is 5% or more of the investment portfolio of the Town. The investments in the New Mexico LGIP and U.S
Treasury Money Market Mutual Funds represent 68% and 32%, respectively, of the investment portfolio. Since
the Town only purchases investments with the highest credit rating, the additional concentration is not viewed to
be an additional risk by the Town. The Town’s policy related to concentration of credit risk is to comply with the
state statute as put forth in the Public Money Act (Section 6-10-1 to 6-10-63, NMSA 1978).
Fair Value Measurement
The fair value framework uses a hierarchy that prioritizes the inputs to the valuation techniques used to measure
fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical
assets or liabilities (level 1 measurement) and the lowest priority to unobservable inputs (level 3 measurements).
The three levels of the fair value hierarchy are described below:
Level 1 Inputs to the valuation methodology are unadjusted quoted prices for identical assets or liabilities in
active markets that the Town has the ability to access.
Level 2 Inputs to the valuation methodology include:
Quoted prices for similar assets or liabilities in active markets.
Quoted prices for identical or similar assets or liabilities in inactive markets.
Inputs other than quoted prices that are observable for the asset or liability.
Inputs that are derived principally from or corroborated by observable market data by
correlation or other means.
If the asset or liability has a specified (contractual) term, the Level 2 input must be observable for
substantially the full term of the asset or liability.
Level 3 Inputs to the valuation methodology are unobservable and significant to the fair value measurement.
The asset’s or liability’s fair value measurement level within the fair value hierarchy is based on the lowest level of
any input that is significant to the fair value measurement. Valuation techniques used need to maximize the use of
observable inputs and minimize the use of unobservable inputs. See above for discussion of valuation
methodologies used to measure fair value of investments.
The valuation methodologies described above may produce a fair value calculation that may not be indicative of
net realizable value or reflective of future fair values. Furthermore, while the Town believes its valuation methods
are appropriate and consistent with other market participants, the use of different methodologies or assumptions to
determine the fair value of certain financial instruments could result in a different fair value measurement at the
reporting date.
The Town maintained a balance of $4,081,744 in the Local Government Investment Pool and $1,932,347 in U.S.
Treasury Money Market Mutual Funds at year end which required fair value disclosure.
50
STATE OF NEW MEXICO
Town of Taos
Notes to the Financial Statements
June 30, 2016
NOTE 3. Deposits and Investments (continued)
The following table sets forth by level within the fair value hierarchy, the Town’s assets at fair value as of
June 30, 2016:
Level 1 Level 2 Level 3 Total
6,014,091$ -$ -$ 6,014,091$
NOTE 4. Receivables
Receivables as of June 30, 2016, are as follows:
Governmental Activities:Other
Airport Governmental
General Construction Funds Total
Property taxes receivable 174,322$ -$ -$ 174,322$
Other taxes receivable:
Gross receipts 1,574,948 - 309,672 1,884,620
Gasoline and motor vehicle - - - -
Franchise taxes 21,425 - - 21,425
Lodgers taxes - - 145,703 145,703
Due from other governments:
Intergovernmental:
Federal grants - 2,196,538 29,670 2,226,208
State grants 1,324 117,931 188,809 308,064
Other receivables 3,585 - - 3,585
Total receivables 1,775,604$2,314,469$ 673,854$ 4,763,927$
Receivables for governmental activities are considered to be 100% collectible.
Governmental funds report unavailable revenue in connection with receivables for revenues that are not considered
to be available to liquidate liabilities in the current period. Governmental funds also defer revenue recognition in
connection with resources that have been received but not yet earned. Unavailable revenue related to property
taxes receivable for the Town for the year ended June 30, 2016 was $117,200.
Business-type Activities:Water and Solid Taos Regional
Sewer Waste Landfill Total
Customer receivables 1,103,163$ 324,639$ 129,204$ 1,557,006$
Other receivables:
Gross receipts taxes 277,478 - - 277,478
Total gross receivables 1,380,641 324,639 129,204 1,834,484
Less: allowance for
doubtful accounts 621,036 37,896 19,125 678,057
Total net receivables 759,605$ 286,743$ 110,079$ 1,156,427$
51
STATE OF NEW MEXICO
Town of Taos
Notes to the Financial Statements
June 30, 2016
NOTE 5. Transfers and Interfund Receivables
Net operating transfers, made to close out funds and to supplement other funding sources, were as follows:
Governmental Activities:
Transfers In Transfers Out Amount
1999 Gasoline Tax Acquisition Capital Projects 675,079$
2008 Gross Receipts Tax Revenue
Bond 1/4 Cent Municipal Gross Receipts Tax 493,025
Enhaned 911 General Fund 285,457
2009 NMFA PPRF Disadvantage
Program-Eco Park 1/4 Cent Municipal Gross Receipts Tax 180,753
Community Grants General Fund 162,474
1999 Gasoline Tax Acquisition 1/4 Cent Municipal Gross Receipts Tax 161,597
2011 PPRF Street Improvement General Fund 127,513
2007 NMFA Land Purchase 1/4 Cent Municipal Gross Receipts Tax 113,758
Public Transportation Lodgers Tax 108,871
1999 Gasoline Tax Acquisition Municipal Road Gasoline Tax 79,456
1999 Gasoline Tax Revenue Bond
Retirement Fire Protection 73,634
Enhanced 911 Community Grants 70,000
Facilities Improvement Capital Projects 50,000
2011 PPRF Street Improvement Municipal Road Gasoline Tax 42,001
1999 Gasoline Tax Acquisition General Fund 23,550
Recreation Fund General Fund 22,360
2,669,528$
Internal balances have primarily been recorded when funds overdraw their share of pooled cash. The composition
of interfund balances as of June 30, 2016 is as follows:
Due from Other Funds Due to Other Funds Amount
General Fund Water and Sewer 15,950$
General Fund Solid Waste 5,442
General Fund Taos Regional Landfill 5,723
27,115$
All interfund transactions are short-term and are expected to be repaid within a year.
52
STATE OF NEW MEXICO
Town of Taos
Notes to the Financial Statements
June 30, 2016
NOTE 6. Capital Assets
A summary of capital assets and changes occurring during the year ended June 30, 2016 follows. Land and
construction in progress are not subject to depreciation.
Balance Balance
Governmental activities:June 30, 2015 Additions Deletions June 30, 2016
Capital assets, not depreciated:
Land 6,277,809$ -$ -$ 6,277,809$
Construction in progress 4,420,772 5,478,709 287,314 9,612,167
Total capital assets, not depreciated 10,698,581 5,478,709 287,314 15,889,976
Capital assets, depreciated:
Land improvements 7,461,945 - - 7,461,945
Buildings and improvements 34,542,166 743,085 470,217 34,815,034
Machinery and equipment 15,744,890 930,489 825,263 15,850,116
Infrastructure 54,170,366 704,447 60,226 54,814,587
Total capital assets, depreciated 111,919,367 2,378,021 1,355,706 112,941,682
Less accumulated depreciation:
Land improvements (4,577,808) (250,023) - (4,827,831)
Buildings and improvements (16,786,126) (1,129,323) (115,832) (17,799,617)
Machinery and equipment (13,209,053) (564,593) (573,894) (13,199,752)
Infrastructure (37,695,221) (1,817,011) (16,990) (39,495,242)
Total accumulated depreciation (72,268,208) (3,760,950) (706,716) (75,322,442)
Net book value 50,349,740$ 4,095,780$ 936,304$ 53,509,216$
During the year ended June 30, 2016, the Town transferred capital assets and related depreciation in the amount of
$648,990 to the North Central Regional Transit District (NCRTD) to consolidate public transit services. The Town
and NCRTD evaluated the fiscal and operational impacts of a consolidated service in the Taos area and determined
that it would be more cost-effective and efficient to have NCRTD provide the transit services currently designated
and identified as the Chile Line. This consolidation saved the Town approximately $175,000 in Lodgers Tax
funding which in turn can be used to promote and expand our tourism initiatives including but not limited to
additional staffing, hosting special events and capital purchases towards those events.
Depreciation expense for the year ended June 30, 2016 was charged to governmental activities as follows:
General government 3,409,860$
Public safety 77,237
Public works 260,372
Culture and recreation 13,481
3,760,950$
53
STATE OF NEW MEXICO
Town of Taos
Notes to the Financial Statements
June 30, 2016
NOTE 6. Capital Assets (continued)
Balance Balance
Business-type activities:June 30, 2015 Additions Deletions June 30, 2016
Capital assets, not depreciated:
Land 262,422$ -$ -$ 262,422$
Construction in progress 654,898 2,614,088 - 3,268,986
Total capital assets, not depreciated 917,320 2,614,088 - 3,531,408
Capital assets, depreciated:
Land improvements 104,895 - - 104,895
Buildings and improvements 4,656,981 - - 4,656,981
Machinery and equipment 8,861,368 24,800 9,700 8,876,468
Infrastructure 33,499,623 - - 33,499,623
Total capital assets, depreciated 47,122,867 24,800 9,700 47,137,967
Less accumulated depreciation:
Land improvements (92,949) (1,740) - (94,689)
Buildings and improvements (2,588,906) (152,705) - (2,741,611)
Machinery and equipment (7,260,337) (269,082) (9,700) (7,519,719)
Infrastructure (11,803,684) (1,384,961) - (13,188,645)
Total accumulated depreciation (21,745,876) (1,808,488) (9,700) (23,544,664)
Net book value 26,294,311$ 830,400$ -$ 27,124,711$
Depreciation expense for the year ended June 30, 2016 was charged to business-type activities as follows:
Enterprise activities:
Water and sewer 1,588,910$
Solid waste 58,315
Landfill 161,263
1,808,488$
54
STATE OF NEW MEXICO
Town of Taos
Notes to the Financial Statements
June 30, 2016
NOTE 7. Long-term Debt
Governmental Activities:
During the year ended June 30, 2016, the following changes occurred in the liabilities reported in the government-
wide statement of net position:
Balance Balance Due Within
June 30, 2015 Additions Retirements June 30, 2016 One Year
Revenue Bonds 4,675,000$ -$ 300,000$ 4,375,000$ 315,000$
NMFA Loans 3,301,530 - 459,043 2,842,487 470,564
Compensated Absences 566,383 414,344 364,398 616,329 364,398
Total Long-Term Debt 8,542,913$ 414,344$ 1,123,441$ 7,833,816$ 1,149,962$
Revenue Bonds
At June 30, 2016, the Town had one revenue bond outstanding. For the Series 2008 Gross Receipts Tax Revenue
Bonds, the Town pledged revenues from the State-Shared Gross Receipts Tax revenues. The revenue bonds are as
follows:
Original
Date of Due Interest Amount
Description Issue Date Rate of Issue
Series 2008 Gross Receipts Tax 01/30/08 06/01/26 4.00-5.00% 6,395,000$
The annual requirements to amortize the revenue bonds as of June 30, 2016, including interest payments, are as
follows:
Fiscal Year Total Debt
Ending June 30, Principal Interest Service
2017 315,000$ 181,025$ 496,025$
2018 385,000 166,775 551,775
2019 400,000 151,375 551,375
2020 415,000 135,375 550,375
2021 430,000 118,775 548,775
2022-2025 1,905,000 290,730 2,195,730
2026 525,000 22,050 547,050
4,375,000$ 1,066,105$ 5,441,105$
55
STATE OF NEW MEXICO
Town of Taos
Notes to the Financial Statements
June 30, 2016
NOTE 7. Long-term Debt (continued)
NMFA Loans
The Town entered into three loan agreements with the New Mexico Finance Authority, wherein the Town pledged
revenue derived from State-Shared Gross Receipts Tax to cover debt service. This revenue is not subject to
intercept agreements. The NMFA loans are as follows:
Date of Due Interest Amount
Description Issue Date Rate of Issue
NMFA Land Purchase Loan 04/13/07 05/01/17 3.32-3.73% 954,000$
NMFA Phase I Multi-Phase Eco Park 11/25/09 05/01/25 0.62-3.67% 2,213,469
NMFA Revolving Loan Fund Road Projects 11/04/11 05/01/22 1.895% 1,694,457
NMFA Fire Truck Pumper Loan 05/08/15 05/01/21 0.92% 434,994
The annual requirements to amortize the NMFA loans as of June 30, 2016, including interest payments, are as
follows:
Fiscal Year Total Debt
Ending June 30, Principal Interest Service
2017 470,564$ 69,788$ 540,352$
2018 368,231 60,668 428,899
2019 377,252 53,801 431,053
2020 387,381 45,952 433,333
2021 398,774 36,928 435,702
2022-2025 840,285 65,059 905,344
2,842,487$ 332,196$ 3,174,683$
Compensated Absences- Employees of the Town are able to accrue a limited amount of vacation and other
compensatory time during the year. During fiscal year June 30, 2016, government-wide compensated absences
increased $49,946 from the prior year accrual. Compensated absences are liquidated by the respective funds in
which they are accrued.
56
STATE OF NEW MEXICO
Town of Taos
Notes to the Financial Statements
June 30, 2016
NOTE 7. Long-term Debt (continued)
Proprietary Funds:
The proprietary funds have incurred various forms of debt which were used for the purposes of constructing,
expanding, repairing and making improvements to its property, plant and equipment. The following schedule
shows the changes to its various forms of debt during the fiscal year ended June 30, 2016:
Balance Balance Due Within
June 30, 2015 Additions Retirements June 30, 2016 One Year
Revenue Bonds 1,909,600$ -$ 54,000$ 1,855,600$ 57,000$
NMFA and RUS Loans 2,647,648 1,376,046 288,694 3,735,000 334,039
Landfill Closure Liability 1,677,021 - - 1,677,021 -
Compensated Absences 67,142 71,682 59,064 79,760 59,064
Total Long-Term Debt 6,301,411$ 1,447,728$ 401,758$ 7,347,381$ 450,103$
Revenue Bonds
At June 30, 2016, the Town had the following revenue bonds outstanding:
Description Issue Date Rate of Issue
Series 1993A Water & Sewer 03/16/93 03/16/33 5.63% 635,600$
Series 1993B Water & Sewer 03/16/93 03/16/33 5.50% 123,000
Series 1995A Water & Sewer 12/05/95 12/05/35 5.125% 1,315,000
Series 1998A Water & Sewer 07/01/99 01/01/38 4.75% 475,000
The annual requirements to amortize the revenue bonds as of June 30, 2016, including interest payments, are as
follows:
Fiscal Year Total Debt
Ending June 30, Principal Interest Service
2017 57,000$ 96,448$ 153,448$
2018 60,000 93,457 153,457
2019 63,000 90,312 153,312
2020 66,000 87,007 153,007
2021 70,000 83,546 153,546
2022-2025 319,000 358,542 677,542
2026-2030 503,000 239,327 742,327
2031-2035 558,600 71,653 630,253
2036-2038 159,000 - 159,000
1,855,600$ 1,120,292$ 2,975,892$
57
STATE OF NEW MEXICO
Town of Taos
Notes to the Financial Statements
June 30, 2016
NOTE 7. Long-term Debt (continued)
NMFA and USDA Loans
The Town entered into loan agreements with the New Mexico Finance Authority and USDA. These loans are not
subject to intercept agreements. The loans are as follows:
Date of Due Interest Amount
Description Issue Date Rate of Issue
RUS Series 2000A Water & Sewer 12/18/00 12/18/40 5.00% 250,000$
NMFA Series 2001A Water & Sewer 05/11/01 05/01/21 4.16-5.41% 950,391
NMFA Series 2008A Landfill 04/11/08 05/01/18 2.72-3.58% 1,000,000
NMFA/WTB Water Project Fund Loan 09/11/09 06/01/29 0.00% 130,000
NMFA/WTB Water Project Fund Loan 09/11/09 06/01/29 0.00% 600,000
NMED/ARRA Water State Revolving Fund Loan 11/23/09 06/30/30 0.00% 1,200,000
NMFA/WTB Water Project Fund Loan 04/19/13 06/01/33 0.25% 197,390
NMFA New Cell for Landfill Facility Loan 8/28/2015 6/1/2025 .38-2.24% 1,376,046
The annual requirement to amortize the loans as of June 30, 2016, including interest payments, is as follows:
Fiscal Year Total Debt
Ending June 30, Principal Interest Service
2017 334,039$ 50,148$ 384,187$
2018 338,980 43,813 382,793
2019 345,346 36,957 382,303
2020 348,868 31,718 380,586
2021 300,979 25,783 326,762
2022-2025 1,308,176 69,212 1,377,388
2026-2030 500,421 35,828 536,249
2031-2035 189,191 24,926 214,117
2032-2040 69,000 11,400 80,400
3,735,000$ 329,785$ 4,064,785$
Compensated Absences- Employees of the Town are able to accrue a limited amount of vacation and other
compensatory time during the year. During fiscal year June 30, 2016, business-type compensated absences
increased $12,618 from the prior year accrual. Compensated absences are liquidated by the respective funds in
which they are accrued.
58
STATE OF NEW MEXICO
Town of Taos
Notes to the Financial Statements
June 30, 2016
NOTE 8. Risk Management
The Town is exposed to various risks of loss related to torts, thefts of, damage to, and destruction of property,
errors and omissions and natural disasters. The Town participates in the New Mexico Self-Insurers’ Fund risk
pool.
The Town has not filed any claims for which the settlement amount exceeded the insurance coverage during the
past three years. However, should a claim be filed against the Town which exceeds the insurance coverage, the
Town would be responsible for a loss in excess of the coverage amounts. As claims are filed, the New Mexico
Self-Insurers’ Fund assesses and estimates the potential for loss and handles all aspects of the claim. Insurance
coverage has not changed significantly from prior years and coverage’s are expected to be continued.
At June 30, 2016, no unpaid claims have been filed which exceed the policy limits and to the best of management’s
knowledge and belief all known and unknown claims will be covered by insurance. The Town is not aware of any
major lawsuits that have been filed.
New Mexico Self-Insurers’ Fund has not provided information on an entity by entity basis that would allow for a
reconciliation of changes in the aggregate liabilities for claims for the current fiscal year and the prior fiscal year.
NOTE 9. Other Required Individual Fund Disclosures
Generally accepted accounting principles require disclosures of certain information concerning individual funds
including:
A. Deficit fund balance of individual funds. The following fund had a deficit fund balance as of June 30, 2016.
Civic Center Special Revenue Fund $(2,323)
B. Actual expenditures in excess of amount budgeted at the budgetary authority level. Budgetary legal level of
control is at the fund level. There were no funds that exceeded approved budgetary authority for the year
ended June 30, 2016.
C. Designated cash appropriations in excess of available balances. There were no funds in which designated
cash appropriations were in excess of available balances.
59
STATE OF NEW MEXICO
Town of Taos
Notes to the Financial Statements
June 30, 2016
NOTE 10. Pension Plan - Public Employees Retirement Association
General Information about the Pension Plan
Plan description. The Public Employees Retirement Fund (PERA Fund) is a cost-sharing, multiple employer
defined benefit pension plan. This fund has six divisions of members, including State Gener al, State Police/Adult
Correction Officer, Municipal General, Municipal Police/Detention Officers, Municipal fire, and State Legislative
Divisions, and offers 24 different types of coverage within the PERA plan. All assets accumulated may be used to
pay benefits, including refunds of member contributions, to any of the plan members or beneficiaries, as defined by
the terms of this plan. Certain coverage plans are only applicable to a specific division. Eligibility for membership
in the PERA Fund is set forth in the Public Employees Retirement Act (Chapter 10, Article 11, NMSA 1978).
Except as provided for in the Volunteer Firefighters Retirement Act (10-11A-1 to 10-11A-7, NMSA 1978), the
Judicial Retirement Act (10-12B-1 to 10-12B-19, NMSA 1978), the Magistrate Retirement Act (10-12C-1 to 10-
12C-18, NMSA 1978), and the Educational Retirement Act (Chapter 22, Article 11, NMSA 1978), and the
provisions of Sections 29-4-1 through 29-4-11, NMSA 1978 governing the State Police Pension Fund, each
employee and elected official of every affiliated public employer is required to be a member in the PERA Fund.
PERA issues a publicly available financial report and a comprehensive annual financial report that can be obtained
at http://saonm.org using the Audit Report Search function for agency 366.
Benefits provided. For a description of the benefits provided and recent changes to the benefits see Note 1 in the
PERA audited financial statements for the fiscal year ended June 30, 2015 available at
http://www.pera.state.nm.us/pdf/AuditFinancialStatements/366_Public_Employees_Retirement_Association_2015
.pdf.
Contributions. The contribution requirements of defined benefit plan members and the Town of Taos are
established in state statute under Chapter 10, Article 11, NMSA 1978. The contribution requirements may be
amended by acts of the legislature. For the employer and employee contribution rates in effect for FY15 for the
various PERA coverage options, for both Tier I and Tier II, see the tables available in the note disclosures on pages
29 through 31 of the PERA FY15 annual audit report at
http://osanm.org/media/audits/366_Public_Employees_Retirement_Association_2015.pdf. The PERA coverage
options that apply to Town of Taos are: Municipal General Division, Municipal Police Division and Municipal
Fire Division. Statutorily required contributions to the pension plan from the Town of Taos were $896,898 and
there were no employer paid member benefits that were “picked up” by the employer for the year ended June 30,
2016.
Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources
Related to Pensions: The PERA pension liability amounts, net pension liability amounts, and sensitivity
information were based on an annual actuarial valuation performed as of June 30, 2014. The PERA pension
liability amounts for each division were rolled forward from the valuation date to the Plan year ending June 30,
2015, using generally accepted actuarial principles. Therefore, the employer’s portion was established as of the
measurement date June 30, 2015.
The assets of the PERA fund are held in one trust, but there are six distinct membership groups (municipal general
members, municipal police members, municipal fire members, state general members, state police members and
legislative members) for whom separate contribution rates are determined each year pursuant to chapter 10, Article
11 NMSA 1978.
Therefore, the calculations of the net pension liability, pension expense and deferred inflows and outflows were
performed separately for each of the membership groups: municipal general members; municipal police members;
municipal fire members; state general members; state police members and legislative members. Town of Taos’
proportion of the net pension liability for each membership group that the employer participates in is based on the
employer contributing entity’s percentage of that membership group’s total employer contributions for the fiscal
year ended June 30, 2015. Only employer contributions for the pay period end dates that fell within the period of
July 1, 2014 to June 30, 2015 were included in the total contributions for a specific employer.
60
STATE OF NEW MEXICO
Town of Taos
Notes to the Financial Statements
June 30, 2016
NOTE 10. Pension Plan - Public Employees Retirement Association (continued)
General Information about the Pension Plan (continued)
Reallocation of Deferred Amounts Due to Changes in proportion, in fiscal year 2015 the beginning deferred
inflows and outflows were reclassified due to the employer’s change in proportion for fiscal year 2015. The total
reallocation of deferred inflows and outflows decreased pension expense by $(126,662) for fiscal year ending June
30, 2016. This amount is not included in pension expense in PERA’s Schedule of Employer Pension Amounts for
the year ended June 30, 2015.
Regular and any adjustment contributions that applied to FY 2016 are included in the total contribution amounts.
In the event that an employer is behind in reporting to PERA its required contributions, an estimate (receivable)
was used to project the unremitted employer contributions. This allowed for fair and consistent measurement of the
contributions with the total population. This methodology was used to maintain consistent measurement each year
in determining the percentages to be allocated among all the participating employers.
For PERA Fund Municipal General Division, at June 30, 2016, Town of Taos reported a liability of $5,152,991
for its proportionate share of the net pension liability. At June 30, 2015, Town of Taos’ proportion was .5054%
percent, which was a decrease of .0422 percent from its proportion measured as of June 30, 2014.
For the year ended June 30, 2016, Town of Taos recognized PERA Fund Municipal General Division pension
expense of $349,274. At June 30, 2016, Town of Taos reported PERA Fund Municipal General Division deferred
outflows of resources and deferred inflows or resources related to pensions from the following sources:
Deferred
Outflows of
Resources
Deferred
Inflows of
Resources
Change in assumptions -$ 2,007$
Changes in proportion - 251,380
Difference between expected and actual experience - 114,141
Net difference between projected and actual earning
on pension plan investments - 16,300
Contributions subsequent to the measurement date 549,882 -
549,882$ 383,828$
$549,882 reported as deferred outflows of resources related to pensions resulting from Town of Taos’
contributions subsequent to the measurement date June 30, 2015 will be recognized as a reduction of the net
pension liability in the year ended June 30, 2017. Other amounts reported as deferred inflows of resources related
to pensions will be recognized in pension expense as follows:
Year ended June 30:
2017 (214,308)$
2018 (214,308)
2019 (214,308)
2020 259,096
Thereafter -
61
STATE OF NEW MEXICO
Town of Taos
Notes to the Financial Statements
June 30, 2016
NOTE 10. Pension Plan - Public Employees Retirement Association (continued)
General Information about the Pension Plan (continued)
For PERA Fund Municipal Police Division, at June 30, 2016, Town of Taos reported a liability of $2,329,267
for its proportionate share of the net pension liability. At June 30, 2015, Town of Taos’ proportion was 0.4844
percent, which was a decrease of .0043 percent from its proportion measured as of June 30, 2014.
For the year ended June 30, 2016, Town of Taos recognized PERA Fund Municipal Police Division pension
expense of $160,324. At June 30, 2016, Town of Taos reported PERA Fund Municipal Police Division deferred
outflows of resources and deferred inflows or resources related to pensions from the following sources:
Deferred
Outflows of
Resources
Deferred
Inflows of
Resources
Change in assumptions -$ 96,367$
Changes in proportion - 10,704
Difference between expected and actual experience 162,760 -
Net difference between projected and actual earning
on pension plan investments - 6,461
Contributions subsequent to the measurement date 250,363 -
413,123$ 113,532$
$250,363 reported as deferred outflows of resources related to pensions resulting from Town of Taos’
contributions subsequent to the measurement date June 30, 2015 will be recognized as a reduction of the net
pension liability in the year ended June 30, 2017. Other amounts reported as deferred inflows and outsources of
resources related to pensions will be recognized in pension expense as follows:
Year ended June 30:
2017 (23,147)$
2018 (23,147)
2019 (23,147)
2020 118,669
Thereafter -
62
STATE OF NEW MEXICO
Town of Taos
Notes to the Financial Statements
June 30, 2016
NOTE 10. Pension Plan - Public Employees Retirement Association (continued)
General Information about the Pension Plan (continued)
For PERA Fund Municipal Fire Division, at June 30, 2016, Town of Taos reported a liability of $1,429 ,131 for
its proportionate share of the net pension liability. At June 30, 2015, Town of Taos’ proportion was 0.2769 percent,
which was an increase of .0202 percent from its proportion measured as of June 30, 2014.
For the year ended June 30, 2016, Town of Taos recognized PERA Fund Municipal Fire Division pension expense
of $62,985. At June 30, 2016, Town of Taos reported PERA Fund Municipal Fire Division deferred outflows of
resources and deferred inflows or resources related to pensions from the following sources:
Deferred
Outflows of
Resources
Deferred
Inflows of
Resources
Change in assumptions 30,142$ -$
Changes in proportion 64,382 -
Difference between expected and actual experience 56,282 -
Net difference between projected and actual earning
on pension plan investments - 1,719
Contributions subsequent to the measurement date 96,656 -
247,462$ 1,719$
$96,656 reported as deferred outflows of resources related to pensions resulting from Town of Taos’ contributions
subsequent to the measurement date June 30, 2015 will be recognized as a reduction of the net pension liability in
the year ended June 30, 2017. Other amounts reported as deferred inflows and outsources of resources related to
pensions will be recognized in pension expense as follows:
Year ended June 30:
2017 36,904$
2018 36,904
2019 36,904
2020 38,375
Thereafter -
Actuarial assumptions. As described above, the PERA Fund member group pension liabilities and net pension
liabilities are based on actuarial valuations performed as of June 30, 2014 for each of the membership groups. Then
each PERA Fund member group pension liability was rolled forward from the valuation date to the Plan year
ending June 30, 2015 using generally accepted actuarial principles. There were no significant events or changes in
benefit provisions that required an adjustment to the roll-forward liabilities as of June 30, 2015. These actuarial
methods and assumptions were adopted by the Board for use in the June 30, 2015 actuarial valuation.
63
STATE OF NEW MEXICO
Town of Taos
Notes to the Financial Statements
June 30, 2016
NOTE 10. Pension Plan - Public Employees Retirement Association (continued)
General Information about the Pension Plan (continued)
Actuarial valuation date June 30, 2014
Actuarial cost method Entry age normal
Amortization method Level percentage of pay
Amortization period Solved for based on statutory rates
Asset valuation method Fair value
Actuarial assumptions:
Investment rate of return 7.75% annual rate, net of investment expense
Projected benefit payment 100 years
Payroll growth 3.50% annual rate
Projected salary increases 3.50 to 14.25% annual rate
Includes inflation at 3.00% annual rate
Mortality assumptions
Experience study date July 1, 2008 to June 30, 2013
RP-200 mortality tables (combined table for
healthy post-retirements, Employee table for
active members, and disabled table for disabled
retirees before retirement age) with projections to
2018 using scale AA.
The long-term expected rate of return on pension plan investments was determined using a statistical analysis in
which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment
expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-
term expected rate of return by weighting the expected future real rates of return by the target asset allocation
percentage and by adding expected inflation. The target asset allocation and most recent best estimates of
arithmetic real rates of return for each major asset class are summarized in the following table:
ALL FUNDS - Asset Class Target Allocation
Long-Term Expected
Real Rate of Return
US Equity 21.10% 5.00%
International Equity 24.80 5.20
Private Equity 7.00 8.20
Core and Global Fixed Income 26.10 1.85
Fixed Income Plus Sectors 5.00 4.80
Real Estate 5.00 5.30
Real Assets 7.00 5.70
Absolute Return 4.00 4.15
Total 100.00%
.
Discount rate: The discount rate used to measure the total pension liability was 7.75 percent. The projection of
cash flows used to determine the discount rate assumed that future contributions will be made in accordance with
statutory rates. On this basis, the pension plan’s fiduciary net position together with the expected future
contributions are sufficient to provide all projected future benefit payments of current plan members as determined
in accordance with GASBS 67. Therefore, the 7.75% assumed long-term expected rate of return on pension plan
investments was applied to all periods of projected benefit payments to determine the total pension liability.
64
STATE OF NEW MEXICO
Town of Taos
Notes to the Financial Statements
June 30, 2016
NOTE 10. Pension Plan - Public Employees Retirement Association (continued)
General Information about the Pension Plan (continued)
Sensitivity of the Employer’s proportionate share of the net pension liability to changes in the discount rate.
The following tables show the sensitivity of the net pension liability to changes in the discount rate. In particular,
the tables present Town of Taos’ net pension liability in each PERA Fund Division that Town of Taos participates
in, under the current single rate assumption, as if it were calculated using a discount rate one percentage point
lower (6.75%) or one percentage point higher (8.75%) than the single discount rate.
PERA Fund Municipal General Division
1% Decrease
(6.75%)
Current
Discount Rate
(7.75%)
1% Increase
(8.75%)
Town of Taos' proportionate share of the
net pension liability 8,773,499$ 5,152,991$ 2,142,785$
PERA Fund Municipal Police Division
1% Decrease
(6.75%)
Current
Discount Rate
(7.75%)
1% Increase
(8.75%)
Town of Taos' proportionate share of the
net pension liability 3,846,644$ 2,329,267$ 1,084,504$
PERA Fund Municipal Fire Division
1% Decrease
(6.75%)
Current
Discount Rate
(7.75%)
1% Increase
(8.75%)
Town of Taos' proportionate share of the
net pension liability 1,938,256$ 1,429,131$ 1,009,544$
Pension plan fiduciary net position. Detailed information about the pension plan’s fiduciary net position is
available in the separately issued FY15 Restated PERA financial report. The report is available at
http://www.pera.state.nm.us/publications.html.
Payables to the pension plan. At June 30, 2016 there were no contributions due and payable to PERA for the
Town.
65
STATE OF NEW MEXICO
Town of Taos
Notes to the Financial Statements
June 30, 2016
NOTE 11. Post-Employment Benefits – State Retiree Health Care Plan
Plan Description. Town of Taos contributes to the New Mexico Retiree Health Care Fund, a cost-sharing multiple-
employer defined benefit postemployment healthcare plan administered by the New Mexico Retiree Health Care
Authority (RHCA). The RHCA provides health care insurance and prescription drug benefits to retired employees
of participating New Mexico government agencies, their spouses, dependents, and surviving spouses and
dependents. The RHCA Board was established by the Retiree Health Care Act (Chapter 10, Article 7C, NMSA
1978). The Board is responsible for establishing and amending benefit provisions of the healthcare plan and is also
authorized to designate optional and/or voluntary benefits like dental, vision, supplemental life insurance, and
long-term care policies.
Eligible retirees are: 1) retirees who make contributions to the fund for at least five years prior to retirement and
whose eligible employer during that period of time made contributions as a participant in the RHCA plan on the
person’s behalf unless that person retires before the employer’s RHCA effective date, in which event the time
period required for employee and employer contributions shall become the period of time between the employer’s
effective date and the date of retirement; 2) retirees defined by the Act who retired prior to July 1, 1990; 3) former
legislators who served at least two years; and 4) former governing authority members who served at least four
years.
The RHCA issues a publicly available stand-alone financial report that includes financial statements and required
supplementary information for the postemployment healthcare plan. That report and further information can be
obtained by writing to the Retiree Health Care Authority at 4308 Carlisle NE, Suite 104, Albuquerque, NM 87107.
Funding Policy. The Retiree Health Care Act (Section 10-7C-13 NMSA 1978) authorizes the RHCA Board to
establish the monthly premium contributions that retirees are required to pay for healthcare benefits. Each
participating retiree pays a monthly premium according to a service based subsidy rate schedule for the medical
plus basic life plan plus an additional participation fee of five dollars if the eligible participant retired prior to the
employer’s RHCA effective date or is a former legislator or former governing authority member. Former
legislators and governing authority members are required to pay 100% of the insurance premium to cover their
claims and the administrative expenses of the plan. The monthly premium rate schedule can be obtained from the
RHCA or viewed on their website at www.nmrhca.state.nm.us.
The employer, employee and retiree contributions are required to be remitted to the RHCA on a monthly basis.
The statutory requirements for the employer and employee contributions can be changed by the New Mexico State
Legislature. Employers that choose to become participating employers after January 1, 1998, are required to make
contributions to the RHCA fund in the amount determined to be appropriate by the board.
The Retiree Health Care Act (Section 10-7C-15 NMSA 1978) is the statutory authority that establishes the required
contributions of participating employers and their employees. For employees that were members of an enhanced
retirement plan (state police and adult correctional officer member coverage plan 1; municipal police member
coverage plans 3, 4 or 5; municipal fire member coverage plan 3, 4 or 5; municipal detention officer member
coverage plan 1; and members pursuant to the Judicial Retirement Act) during the fiscal year ended June 30, 2015,
the statute required each participating employer to contribute 2.5% of each participating employee’s annual salary;
and each participating employee was required to contribute 1.25% of their salary. For employees that were not
members of an enhanced retirement plan during the fiscal year ended June 30, 2015, the statute required each
participating employer to contribute 2.0% of each participating employee’s annual salary; each participating
employee was required to contribute 1.0% of their salary. In addition, pursuant to Section 10-7C-15(G) NMSA
1978, at the first session of the Legislature following July 1, 2013, the legislature shall review and adjust the
distributions pursuant to Section 7-1-6.1 NMSA 1978 and the employer and employee contributions to the
authority in order to ensure the actuarial soundness of the benefits provided under the Retiree Health Care Act.
The Town’s contributions to the RHCA for the years ended June 30, 2016, 2015 and 2014 were $116,266,
$114,919, and $118,969, respectively, which equal the required contributions for each year.
66
STATE OF NEW MEXICO
Town of Taos
Notes to the Financial Statements
June 30, 2016
NOTE 12. Contingent Liabilities
The Town is party to various claims and lawsuits arising in the normal course of business. The Town is insured
through the New Mexico Self Insurers Fund. The maximum exposure of the Town is not estimable as of June 30,
2016.
NOTE 13. Federal and State Grants
In the normal course of operations, the Town receives grant funds from various federal and state agencies.
Amounts received or receivable from grantor agencies are subject to audit and adjustment by grantor agencies, the
purpose of which is to ensure compliance with conditions precedent to the granting of funds. Any liability for
reimbursement which may arise as a result of these audits is not believed to be material.
NOTE 14. Landfill Closure and Post Closure Care Costs
State and Federal laws and regulations require that the Town place a final cover on its landfill site and perform
certain maintenance and monitoring functions at the landfill site for a minimum of thirty years after closure. In
addition to operating expenses related to current activities of the landfill site, an expense provision and related
liability are being recognized based on the future closure and post closure care costs that will be incurred near or
after the date the landfill no longer accepts waste. The recognition of these landfill closure and post-closure care
costs is based on the amount of the landfill used during the year. The estimated liability for landfill closure and
post closure care costs is $1,677,021 as of June 30, 2016, which is based on 40 percent usage (filled) of the landfill.
The estimate has remained unchanged from the prior year as no significant construction occurred or changes to the
site conditions. The estimated total current cost of the landfill closure and post closure care is based on the amount
that would be paid if all equipment, facilities, and services required to close, monitor, and maintain the landfill
were acquired as of June 30, 2016. However, the actual cost of closure and post closure care may be higher due to
inflation, changes in technology, or changes in landfill laws and regulations.
In addition, the Town is required by State and Federal laws and regulations to make annual contributions to finance
closure and postclosure care. The Town is in compliance with these requirements, and at June 30, 2016 cash of
$976,766 and investments of $323,496 is part of the pooled funds held by the Town and is presented as restricted
cash on the statement of net position.
NOTE 15. Construction and Other Significant Commitments
The Town has committed to pay for several construction contracts that were not completed at June 30, 2016 in the
amount of $15,566,847 as follows:
Project Description
Contract
Amount
Remaining Contractor
Construction of Runway 12/30 Phase 1 51,328$ Northern Mountain Constructors, Inc
Construction of Runway 12/30 Phase 2 1,121,832 Northern Mountain Constructors, Inc
Engineering Services for Construction of Runway
12/30 Phase 1 481,631 Armstrong Consultants, Inc
Engineering Services for Construction of Runway
12/30 Phase 2 13,912,056 Armstrong Consultants, Inc
15,566,847$
67
STATE OF NEW MEXICO
Town of Taos
Notes to the Financial Statements
June 30, 2016
NOTE 16. Subsequent Events
The date to which events occurring after June 30, 2016, the date of the most recent statement of net position, have
been evaluated for possible adjustment to the financial statements or disclosures is November 29, 2016, which is
the date on which the financial statements were issued.
NOTE 17. Concentrations
The Town depends on financial resources flowing from, or associated with, both the Federal Government and the
State of New Mexico. Because of this dependency, the Town is subject to changes in the specific flows of
intergovernmental revenues based on modifications to Federal and State laws and Federal and State appropriations.
NOTE 18. Restricted Net Position
The government-wide statement of net position reports $5,093,945 of restricted net position for governmental
activities, all of the special revenue funds which are restricted by enabling legislation. See pages 41 and 82-85 for
descriptions of the related restrictions for special revenue, debt service and capital projects funds. In addition, the
government-wide statement of net position reports $3,764,666 of restricted net position for business-type activities
See page 41 for descriptions of the related restrictions for meter deposits, debt service and landfill obligations.
NOTE 19. Utility Revenues Pledged
The Town of Taos has pledged future revenues from the water and sewer system, net of operation and maintenance
expenses, to repay $635,600 in Series 1993A Water & Sewer Revenue Bonds, issued in 1993. The bonds are
payable solely from utility customer net revenues and are payable through March 2033. The pledged revenues
shall be in an amount sufficient to pay principal, premium, if any, interest and other amounts due under the bond
agreement, including an amount sufficient to cure any deficiencies in the debt service account or the bond
agreement reserve account, to the USDA or the Trustee, as its assignee, to be deposited in the debt service reserve
account or the bond agreement reserve account held by the trustee, payable from and constituting a lien upon the
pledged revenues. The total principal and interest remaining to be paid on the bonds is $437,600 and $253,643,
respectively. Principal and interest paid for the current year and total customer net revenues were $41,246 and
$2,829,873, respectively.
The Town of Taos has pledged future revenues from the water and sewer system, net of operation and maintenance
expenses, to repay $123,000 in Series 1993B Water & Sewer Revenue Bonds, issued in 1993. The bonds are
payable solely from utility customer net revenues and are payable through March 2033. The pledged revenues
shall be in an amount sufficient to pay principal, premium, if any, interest and other amounts due under the bond
agreement, including an amount sufficient to cure any deficiencies in the debt service account or the bond
agreement reserve account, to the USDA or the Trustee, as its assignee, to be deposited in the debt service reserve
account or the bond agreement reserve account held by the trustee, payable from and constituting a lien upon the
pledged revenues. The total principal and interest remaining to be paid on the bonds is $87,000 and $52,470,
respectively. Principal and interest paid for the current year and total customer net revenues were $7,950 and
$2,829,873, respectively.
68
STATE OF NEW MEXICO
Town of Taos
Notes to the Financial Statements
June 30, 2016
NOTE 19. Utility Revenues Pledged (continued)
The Town of Taos has pledged future revenues from the water and sewer system, net of operation and maintenance
expenses, to repay $1,315,000 in Series 1995A Water & Sewer Revenue Bonds, issued in 1995. The bonds are
payable solely from utility customer net revenues and are payable through December 2035. The pledged revenues
shall be in an amount sufficient to pay principal, premium, if any, interest and other amounts due under the bond
agreement, including an amount sufficient to cure any deficiencies in the debt service account or the bond
agreement reserve account, to the USDA or the Trustee, as its assignee, to be deposited in the debt service reserve
account or the bond agreement reserve account held by the trustee, payable from and constituting a lien upon the
pledged revenues. The total principal and interest remaining to be paid on the bonds is $962,000 and $586,663,
respectively. Principal and interest paid for the current year and total customer net revenues were $77,686 and
$2,829,873, respectively.
The Town of Taos has pledged future revenues from the water and sewer system, net of operation and maintenance
expenses, to repay $475,000 in Series 1998A Water & Sewer Revenue Bonds, issued in 1999. The bonds are
payable solely from utility customer net revenues and are payable through January 2038. The pledged revenues
shall be in an amount sufficient to pay principal, premium, if any, interest and other amounts due under the bond
agreement, including an amount sufficient to cure any deficiencies in the debt service account or the bond
agreement reserve account, to the USDA or the Trustee, as its assignee, to be deposited in the debt service reserve
account or the bond agreement reserve account held by the trustee, payable from and constituting a lien upon the
pledged revenues. The total principal and interest remaining to be paid on the bonds is $369,000 and $227,516,
respectively. Principal and interest paid for the current year and total customer net revenues were $27,184 and
$2,829,873, respectively.
The Town of Taos has pledged future revenues from the water and sewer system, net of operation and maintenance
expenses, to repay $250,000 in RUS Series 2000A Water & Sewer Loan, issued in 2000. The loans are payable
solely from utility customer net revenues and are payable through December 2040. The pledged revenues shall be
in an amount sufficient to pay principal, premium, if any, interest and other amounts due under the loan agreement,
including an amount sufficient to cure any deficiencies in the debt service account or the loan agreement reserve
account, to the USDA or the Trustee, as its assignee, to be deposited in the debt service reserve account or the loan
agreement reserve account held by the trustee, payable from and constituting a lien upon the pledged revenues.
The total principal and interest remaining to be paid on the loan is $207,000 and $164,250, respectively. Principal
and interest paid for the current year and total customer net revenues were $14,550 and $2,829,873, respectively.
The Town of Taos has pledged future revenues from the water and sewer system, net of operation and maintenance
expenses, to repay $950,391 in NMFA Series 2001A Water & Sewer Loan, issued in 2001. The loans are payable
solely from utility customer net revenues and are payable through May 2021. The pledged revenues shall be in an
amount sufficient to pay principal, premium, if any, interest and other amounts due under the loan agreement,
including an amount sufficient to cure any deficiencies in the debt service account or the loan agreement reserve
account, to the NMFA or the Trustee, as its assignee, to be deposited in the debt service reserve account or the loan
agreement reserve account held by the trustee, payable from and constituting a lien upon the pledged revenues.
The total principal and interest remaining to be paid on the loan is $256,510 and $31,517, respectively. Principal
and interest paid for the current year and total customer net revenues were $68,711 and $2,829,873, respectively.
The Town of Taos has pledged future revenues from the Taos Regional Landfill system, net of operation and
maintenance expenses, to repay $1,000,000 in NMFA Series 2008A Landfill Loan, issued in 2008. The loans are
payable solely from utility customer net revenues and are payable through May 2018. The pledged revenues shall
be in an amount sufficient to pay principal, premium, if any, interest and other amounts due under the loan
agreement, including an amount sufficient to cure any deficiencies in the debt service account or the loan
agreement reserve account, to the NMFA or the Trustee, as its assignee, to be deposited in the debt service reserve
account or the loan agreement reserve account held by the trustee, payable from and constituting a lien upon the
pledged revenues. The total principal and interest remaining to be paid on the loan is $233,586 and $10,235,
respectively. Principal and interest paid for the current year and total customer net revenues were $121,475 and
$1,257,267, respectively.
69
STATE OF NEW MEXICO
Town of Taos
Notes to the Financial Statements
June 30, 2016
NOTE 19. Utility Revenues Pledged (continued)
The Town of Taos has pledged future revenues from the Taos Wastewater project, net of operation and
maintenance expenses, to repay $130,000 in NMFA/WTB Water Project, issued in 2009. The loans are payable
solely from utility customer net revenues and are payable through June 2029. The pledged revenues shall be in an
amount sufficient to pay principal, premium, if any, interest and other amounts due under the loan agreement,
including an amount sufficient to cure any deficiencies in the debt service account or the loan agreement reserve
account, to the NMFA or the Trustee, as its assignee, to be deposited in the debt service reserve account or the loan
agreement reserve account held by the trustee, payable from and constituting a lien upon the pledged revenues.
The total principal remaining to be paid on the loan is $86,410 with no interest due. Principal for the current year
and total customer net revenues were $6,531 and $2,829,873, respectively.
The Town of Taos has pledged future revenues from the Taos Wastewater project, net of operation and
maintenance expenses, to repay $600,000 in NMFA/WTB Water Project, issued in 2009. The loans are payable
solely from utility customer net revenues and are payable through June 2029. The pledged revenues shall be in an
amount sufficient to pay principal, premium, if any, interest and other amounts due under the loan agreement,
including an amount sufficient to cure any deficiencies in the debt service account or the loan agreement reserve
account, to the NMFA or the Trustee, as its assignee, to be deposited in the debt service reserve account or the loan
agreement reserve account held by the trustee, payable from and constituting a lien upon the pledged revenues.
The total principal remaining to be paid on the loan is $398,817 with no interest due. Principal for the current year
and total customer net revenues were $30,144 and $2,829,873, respectively.
The Town of Taos has pledged future revenues from the Taos Wastewater project, net of operation and
maintenance expenses, to repay $1,200,000 in NMED Clean Water State Revolving Fund Project, issued in 2009.
The loans are payable solely from utility customer net revenues and are payable through June 2030. The pledged
revenues shall be in an amount sufficient to pay principal, premium, if any, interest and other amounts due under
the loan agreement, including an amount sufficient to cure any deficiencies in the debt service account or the loan
agreement reserve account, to the NMED or the Trustee, as its assignee, to be deposited in the debt service reserve
account or the loan agreement reserve account held by the trustee, payable from and constituting a lien upon the
pledged revenues. The total principal remaining to be paid on the loan is $1,020,000 with no interest due.
Principal for the current year and total customer net revenues were $60,000 and $2,829,873, respectively.
The Town of Taos has pledged future revenues from the Taos Wastewater project, net of operation and
maintenance expenses, to repay $197,390 in NMFA/WTB Water Project, issued in 2013. The loans are payable
solely from utility customer net revenues and are payable through June 2033. The pledged revenues shall be in an
amount sufficient to pay principal, premium, if any, interest and other amounts due under the loan agreement,
including an amount sufficient to cure any deficiencies in the debt service account or the loan agreement reserve
account, to the NMFA or the Trustee, as its assignee, to be deposited in the debt service reserve account or the loan
agreement reserve account held by the trustee, payable from and constituting a lien upon the pledged revenues.
The total principal and interest remaining to be paid on the loan is $168,455 and $3,816, respectively. Principal for
the current year and total customer net revenues were $10,133 and $2,829,873, respectively.
The Town of Taos has pledged future revenues from the New Cell for Landfill Facility, net of operation and
maintenance expenses, to repay $1,376,046 in NMFA loan issued 2015. The loans are payable solely from utility
customer net revenues and are payable through June 2025. The pledged revenues shall be in an amount sufficient
to pay principal, premium, if any, interest and other amounts due under the loan agreement, including an amount
sufficient to cure any deficiencies in the debt service account or the loan agreement reserve account, to the NMFA
or the Trustee, as its assignee, to be deposited in the debt service reserve account or the loan agreement reserve
account held by the trustee, payable from and constituting a lien upon the pledged revenues. The total principal
and interest remaining to be paid on the loan is $1,364,222 and $119,968, respectively. Principal for the current
year and total customer net revenues were $27,821 and $1,257,267, respectively.
70
STATE OF NEW MEXICO
Town of Taos
Notes to the Financial Statements
June 30, 2016
NOTE 20. Subsequent Pronouncements
In June 2015, GASB Statement No. 73 Accounting and Financial Reporting for Pensions and Related Assets That
Are Not within the Scope of GASB Statement 68, and Amendments to Certain Provisions of GASB Statements 67
and 68 was issued. Effective Date: A portion of this provision of this Statement are effective for financial
statements for periods beginning after June 15, 2016. Earlier application is encouraged. The Town is still
evaluating how this pronouncement will affect the financial statements.
In June 2015, GASB Statement No. 74 Financial Reporting for Postemployment Benefit Plans Other Than Pension
Plans was issued. Effective Date: The provisions of this Statement are effective for fiscal years beginning after
June 15, 2016. This pronouncement will not affect the Town’s financial statements.
In June 2015, GASB Statement No. 75 Accounting and Financial Reporting for Postemployment Benefits Other
Than Pensions was issued. Effective Date: The provisions of this Statement are effective for fiscal years beginning
after June 15, 2017. The standard will be implemented during the fiscal year ended June 30, 2018. The Town
expects this pronouncement to have a material effect on the financial statements.
In August 2015, GASB Statement No. 77 Tax Abatement Disclosures was issued. Effective Date: The provisions
of this Statement are effective for financial statements for periods beginning after December 15, 2015. Earlier
application is encouraged. The Town will implement this standard during the fiscal year ended June 30, 2017.
The Town is still evaluating how this pronouncement will affect the financial statements.
In December 2015, GASB Statement No. 78 Pensions Provided through Certain Multiple-Employer Defined
Benefit Pension Plan was issued. Effective Date: The requirements of this Statement are effective for reporting
periods beginning after December 15, 2015. Earlier application is encouraged. The Town is still evaluating how
this pronouncement will affect the financial statements.
In January 2016, GASB Statement No. 80 Blending Requirements for Certain Component Units-an amendment of
GASB Statement No. 14 was issued. Effective Date: The requirements of this Statement are effective for reporting
periods beginning after June 15, 2016. Earlier application is encouraged. The Town is still evaluating how this
pronouncement will affect the financial statements.
In March 2016, GASB Statement No. 81 Irrevocable Split-Interest Agreements was issued. Effective Date: The
requirements of this Statement are effective for reporting periods beginning after December 15, 2016. Earlier
application is encouraged. The Town is still evaluating how this pronouncement will affect the financial
statements.
71
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72
REQUIRED SUPPLEMENTARY INFORMATION
73
STATE OF NEW MEXICO Schedule I
Town of Taos Page 1 of 3
Schedule of the Town's Proportionate Share of the Net Pension Liability
of PERA Fund Municipal General Division
Public Employees Retirement Association (PERA) Plan
Last 10 Fiscal Years*
2016 Measurement
Date (As of and for
the Year Ended
June 30, 2015)
2015 Measurement
Date (As of and for
the Year Ended
June 30, 2014)
Town of Taos' proportion of the net pension liability 0.5054%0.5476%
Town of Taos' proportionate share of the net pension liability 5,152,991$ 4,271,868$
4,513,593$ 4,457,324$ Town of Taos' covered-employee payroll
Town of Taos' proportionate share of the net pension liability as a
percentage of its covered-employee payroll 114.17%95.84%
Plan fiduciary net position as a percentage of the total pension liability 76.99%81.29%
* The amounts presented were determined as of June 30. This schedule is presented to illustrate the requirement to show
information for 10 years. However, until a full 10-year trend is compiled, Town of Taos will present information for those
years for which information is available.
See independent auditors' report.
See notes to required supplementary information.
74
STATE OF NEW MEXICO Schedule I
Town of Taos Page 2 of 3
Schedule of the Town's Proportionate Share of the Net Pension Liability
of PERA Fund Municipal Police Division
Public Employees Retirement Association (PERA) Plan
Last 10 Fiscal Years*
2016 Measurement
Date (As of and for
the Year Ended
June 30, 2015)
2015 Measurement
Date (As of and for
the Year Ended
June 30, 2014)
Town of Taos' proportion of the net pension liability 0.4844%0.4887%
Town of Taos' proportionate share of the net pension liability 2,329,267$ 1,593,109$
949,833$ 937,534$ Town of Taos' covered-employee payroll
Town of Taos' proportionate share of the net pension liability as a
percentage of its covered-employee payroll 245.23%169.93%
Plan fiduciary net position as a percentage of the total pension liability 76.99%81.29%
* The amounts presented were determined as of June 30. This schedule is presented to illustrate the requirement to show
information for 10 years. However, until a full 10-year trend is compiled, Town of Taos will present information for those
years for which information is available.
See independent auditors' report.
See notes to required supplementary information.
75
STATE OF NEW MEXICO Schedule I
Town of Taos Page 3 of 3
Schedule of the Town's Proportionate Share of the Net Pension Liability
of PERA Fund Municipal Fire Division
Public Employees Retirement Association (PERA) Plan
Last 10 Fiscal Years*
2016 Measurement
Date (As of and for
the Year Ended
June 30, 2015)
2015 Measurement
Date (As of and for
the Year Ended
June 30, 2014)
Town of Taos' proportion of the net pension liability 0.2769%0.2567%
Town of Taos' proportionate share of the net pension liability 1,429,131$ 1,071,464$
315,617$ 285,100$ Town of Taos' covered-employee payroll
Town of Taos's proportionate share of the net pension liability as a
percentage of its covered-employee payroll 452.81%375.82%
Plan fiduciary net position as a percentage of the total pension liability 76.99%81.29%
* The amounts presented were determined as of June 30. This schedule is presented to illustrate the requirement to show
information for 10 years. However, until a full 10-year trend is compiled, Town of Taos will present information for those
years for which information is available.
See independent auditors' report.
See notes to required supplementary information.
76
STATE OF NEW MEXICO Schedule II
Town of Taos Page 1 of 3
Schedule of the Town's Contributions
Public Employees Retirement Association (PERA) Plan
PERA Municipal General Division
Last 10 Fiscal Years*
As of and for the
Year Ended June
30, 2016
As of and for the
Year Ended June
30, 2015
549,879$ 576,431$
(549,879)(576,431)
-$-$
4,069,174$ 4,513,593$
Contractually required contributions
Contributions in relation to the contractually required contribution
Contribution deficiency (excess)
Town of Taos' covered-employee payroll
Contributions as a percentage of covered-employee payroll 13.5%12.8%
*The amounts presented were determined as of June 30.This schedule is presented to illustrate the requirement to show
information for 10 years.However,until a full 10-year trend is compiled,Town of Taos will present information for those
years for which information is available.
See independent auditors' report.
See notes to required supplementary information.
77
STATE OF NEW MEXICO Schedule II
Town of Taos Page 2 of 3
Schedule of the Town's Contributions
Public Employees Retirement Association (PERA) Plan
PERA Municipal Police Division
Last 10 Fiscal Years*
As of and for the
Year Ended June
30, 2016
As of and for the
Year Ended June
30, 2015
250,363$ 252,331$
(250,363)(252,331)
-$-$
953,345$ 949,833$
Contractually required contributions
Contributions in relation to the contractually required contribution
Contribution deficiency (excess)
Town of Taos' covered-employee payroll
Contributions as a percentage of covered-employee payroll 26.3%26.6%
*The amounts presented were determined as of June 30.This schedule is presented to illustrate the requirement to show
information for 10 years.However,until a full 10-year trend is compiled,Town of Taos will present information for those
years for which information is available.
See independent auditors' report.
See notes to required supplementary information.
78
STATE OF NEW MEXICO Schedule II
Town of Taos Page 3 of 3
Schedule of the Town's Contributions
Public Employees Retirement Association (PERA) Plan
PERA Municipal Fire Division
Last 10 Fiscal Years*
As of and for the
Year Ended June
30, 2016
As of and for the
Year Ended June
30, 2015
96,656$90,534$
(96,656)(90,534)
-$-$
336,796$ 315,617$
Contractually required contributions
Contributions in relation to the contractually required contribution
Contribution deficiency (excess)
Town of Taos' covered-employee payroll
Contributions as a percentage of covered-employee payroll 28.7%28.7%
*The amounts presented were determined as of June 30.This schedule is presented to illustrate the requirement to show
information for 10 years.However,until a full 10-year trend is compiled,Town of Taos will present information for those
years for which information is available.
See independent auditors' report.
See notes to required supplementary information.
79
STATE OF NEW MEXICO
Town of Taos
Notes to Required Supplementary Information
June 30, 2016
See independent auditors’ report.
Changes of benefit terms. The PERA Fund COLA and retirement eligibility benefits changes in recent years are described in
Note 1 on pages 40-42 of the PERA FY15 audit available at
http://osanm.org/media/audits/366_Public_Employees_Retirement_Association_FY2015.pdf .
Changes of assumptions. The Public Employees Retirement Association (PERA)of the NEW Mexico Annual Actuarial
Valuation as of June 30, 2015 is available at http://www.nmpera.org/assets/uploads/downloads/retirement-fund-valuation-
reports/6-30-2015-PERA-Valuation-Report-FINAL.pdf. See Appendix B on pages 53-61 of the report which summarizes
actuarial assumptions and methods effective with the June 30, 2014 valuation.
Changes in assumptions resulted in a decrease of $91.8 million to the total pension liability for the PERA Fund and an increase
of 0.42% to the funded ratio for the year ended June 30, 2015. See more details of actuarial methods and assumptions on Note 2
on page 34 of PERA’s Schedule of Employer Allocations and Pension amounts at http://osanm.org/media/audits/366-
B_PERA_Schedule_of_Employer_Allocations_FY2015.pdf
80
SUPPLEMENTARY INFORMATION
81
STATE OF NEW MEXICO
Town of Taos
Nonmajor Governmental Fund Descriptions
June 30, 2016
SPECIAL REVENUE FUNDS
Fire Protection –To account for the operations and maintenance of the fire department. Financing is provided by an allotment
from the State of New Mexico Fire Marshall’s Office. State Statute Section 59A-53-2, NMSA, 1978 compilation, requires the
allotment be used only to operate fire departments.
Recreation –To account for establishing and maintaining recreational programs in the Town. F inancing is provided by program
revenue and by a 1-cent tax on cigarette sales, which is collected and distributed by the State of New Mexico. State Statute
Section 7-12-15, NMSA, 1978 compilation requires this tax be used in the above manner.
Lodgers Tax –To account for the operations of tourist facilities or for half of advertising, promoting and publicizing such
facilities and tourist attractions. Financing is provided by one and a half percent of a five percent tax on lodging gross receipts
within the Town of Taos. State Statute Section 4-6-41 provides for this tax to be imposed by the Town. Revenues received are
pursuant to the Lodgers Tax Act (Section 3-38-15, NMSA 1978). M onies in the Lodgers Tax Fund may be used to build, operate,
and maintain tourism related facilities.
Local Government Correction –The local government corrections fee fund is used to account for the collection of a mandatory
correction fee for violations of any municipal ordinance. Funds collected can only be used for jailer training, construction
planning, construction, operation and maintenance of a municipal jail, and for paying for costs of housing. Authority is NMSA
1978 Section 35-14-11B(1).
Law Enforcement Protection –The law e nforcement protection fund was created to account for revenues received pursuant to
the law e nforcement protection fund (Section 29-13-7, NMSA 1978). A mounts distributed from this fund may only be expended
for the following purposes: (1) the repair and purchase of law enforcement apparatus and equipment that meet nationally
recognized standards; (2) expenses associated with advanced law e nforcement planning and training; (3) complying with match or
contribution requirements of federal funds for criminal justice programs; (4) no more than fifty percent (50%) of the replacement
salaries of municipal and county law enforcement personnel while attending a specified advanced law e nforcement planning and
training.
Civic Center –To account for that portion of lodgers tax receipts allocated for Civic Center operations and promotional
expenditures, as well as the revenues earned from Civic Center operations, including rentals, catering fees, and related charges for
services. Authority is Town Council resolution.
Domestic Violence Shelter –This fund was created to receive the appropriations and grants for the purpose of construction and
maintaining the Domestic Violence Shelter Home. Authority is Town Council resolution.
Public Transportation –To account for the portion of Lodgers Tax receipts allocated for the purpose of providing transportation
to the public. Authority is Town Council resolution.
Community Grants –To account for various small grants for various community purposes. Each grant is authorized by the
granting agency. The fund is authorized by Town Council resolution.
Municipal Road Gasoline Tax –To account for a 1 cent gasoline tax that is used for repairing and construction of roads.
Also included in this fund is revenue from the State Department of Transportation under a municipal arterial project
agreement. Authority is 7-7-6.9 and 7-1-6.27 NMSA 1978.
82
STATE OF NEW MEXICO
Town of Taos
Nonmajor Governmental Fund Descriptions
June 30, 2016
SPECIAL REVENUE FUNDS (CONTINUED)
1/4 Cent Municipal Gross Receipts Tax –To account for proceeds from a supplemental municipal gross receipts tax, a portion
of which is pledged toward payment of principal and interest on Gross Receipts Tax Revenue Bonds. A fter required debt service
transfers have been made, the remaining income of this fund is restricted for capital improvement purposes. N MSA 1978 Chapter
7, Article 20E-1 to 22.
Historical District –To account for all associated parking meter and associated revenues and costs, including leases, meter
maintenance, personnel, and historic district promotion. Authority is Town Council resolution.
Communications –To account for money collected by the Town from three other government entities to share centralized
dispatch services throughout the County of Taos. Funding is authorized by a joint powers agreement as authorized by
Sections 11-1-1 through 11-1-7 NMSA 1978.
Confidential Informant –A structured accounting system, operated within the department, providing officers with
investigative expense monies to support operations related to the detection, investigation or enforcement of the laws related
to crime. This includes, but is not limited to: paying documented confidential informants and confidential sources; purchasing
contraband as evidence; and paying expenses for surveillance activities and equipment.Authority is Town Council
resolution.
Capital/Maintenance/Operating Fund –This fund was created to receive additional amounts that are paid for one-time
costs by the Town of Taos. Authority is Town Council resolution.
DEBT SERVICE FUNDS
2015 NMFA Fire Pumper –This fund wa s created for the purpose of repayment of the bond issued for the new fire pumper
purchased. Authority is Town Council resolution.
2009 NMFA PPRF Disadvantage Program-Eco Park –This fund wa s created for the purpose of constructing phase I of a
multi-phased recreation park.The repayment under the loan agreement is solely from the first and second increments of
municipal infrastructure gross receipts tax pursuant to section 7-19D-11, NMSA 1978.
2008 Gross Receipts Tax Revenue Bond Retirement –This fund was created for the purpose of repayment of the bond issue
from the 1.225% distribution of State Shared Gross Receipts Tax revenues. Authority is Town Council resolution.
NMFA Debt Service Reserve Eco Park –This fund was created to be credited with transfers from the General Fund for the
purpose of accumulating monies for payment of principal and interest on the debt for repayment of Eco Park. A uthority is Town
Council resolution.
2007 NMFA Land Purchase –This fund wa s created to be credited with transfers from the General Fund for the purpose of
accumulating monies for payment of principal and interest on the debt for repayment of land purchase. Authority is Town
Council resolution.
2011 PPRF Street Improvement –This fund was created for the purpose of accumulating monies for the payment of principal
and interest on Series PPRF Street Improvement Revenue Bonds. Authority is Town Council resolution.
2011 PPRF Street Improvement Reserve –This fund was created for the purpose of accumulating monies for the payment of
principal and interest on Series PPRF Street Improvement Revenue Bonds. Authority is Town Council resolution.
83
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84
STATE OF NEW MEXICO
Town of Taos
Nonmajor Governmental Fund Descriptions
June 30, 2016
CAPITAL PROJECTS FUNDS
Facilities Improvements –This fund wa s created to receive transfers from other funds for the purpose of improving facilities of
the Town. Authority is Town Council resolution.
Capital Projects –This fund was created to accumulate revenue and other financing sources for the purpose of financing general-
purpose capital projects. Authority is Town Council resolution.
Vehicle Replacement –This fund was created to receive transfers from other funds for the purpose of purchasing vehicles for the
Town of Taos. Authority is Town Council resolution.
1994 Gross Receipts Tax Revenue Bond Acquisition –This fund was created to receive the 1994 Gross Receipts Tax Bond
proceeds for the purpose of construction of affordable housing. Authority is Town Council resolution.
1999 Gasoline Tax Acquisition –This fund was created to receive bond proceeds and to account for the capital outlay associated
with the bond issue. Authority is the Town Council resolution.
85
Fire Protection Recreation Lodgers Tax
Local
Government
Correction
Assets
Cash and cash equivalents 89,366$ 22,360$ 335,899$ 82,326$
Investments 223,258 -400,000 -
Receivables:
Other taxes --145,703 -
Due from other governments ----
Total assets 312,624$ 22,360$ 881,602$ 82,326$
Liabilities
Accounts payable 1,136$ 702$109,663$ 6,225$
Accrued payroll --10,789 -
Deposits held in trust for others ----
Total liabilities 1,136 702 120,452 6,225
Fund balances
Spendable
Restricted for:
General government ----
Public safety ---76,101
Culture and recreation -21,658 761,150 -
Fire protection 311,488 ---
Health and welfare ----
Debt service expenditures ----
Capital projects ----
Committed for:
General government ----
Public safety ----
Transportation ----
Capital projects ----
Unassigned ----
Total fund balances 311,488 21,658 761,150 76,101
Total liabilities and fund balances 312,624$ 22,360$ 881,602$ 82,326$
Special Revenue
June 30, 2016
Combining Balance Sheet
Nonmajor Governmental Funds
Town of Taos
STATE OF NEW MEXICO
The accompanying notes are an integral part of these financial statements.
86
Statement A-1
Page 1 of 3
Law
Enforcement
Protection Civic Center
Domestic
Violence Shelter
Public
Transportation
Community
Grants
Municipal Road
Gasoline Tax
214$780$1$148,127$ 39,809$ -$
-2,000 --72,223 -
------
--4,701 -94,175 -
214$2,780$ 4,702$ 148,127$ 206,207$ -$
214$-$4,701$ 83$15,230$ -$
----2,632 -
-5,103 ----
214 5,103 4,701 83 17,862 -
------
------
------
------
--1 ---
------
------
----188,345 -
------
---148,044 --
------
-(2,323)----
-(2,323)1 148,044 188,345 -
214$2,780$ 4,702$ 148,127$ 206,207$ -$
Special Revenue
The accompanying notes are an integral part of these financial statements.
87
1/4 Cent
Municipal Gross
Receipts Tax
Historical
District Communications
Confidential
Informant
Assets
Cash and cash equivalents 64,317$ 77,397$ 11,200$ 9,828$
Investments - - - -
Receivables:
Other taxes 176,955 - - -
Due from other governments - - - -
Total assets 241,272$ 77,397$ 11,200$ 9,828$
Liabilities
Accounts payable -$ -$ -$ -$
Accrued payroll - 603 - -
Deposits held in trust for others - - - -
Total liabilities - 603 - -
Fund balances
Spendable
Restricted for:
General government 241,272 - 11,200 -
Public safety - - - -
Culture and recreation - - - -
Fire protection - - - -
Health and welfare - - - -
Debt service expenditures - - - -
Capital projects - - - -
Committed for:
General government - 76,794 - -
Public safety - - - 9,828
Transportation - - - -
Capital projects - - - -
Unassigned - - - -
Total fund balances 241,272 76,794 11,200 9,828
Total liabilities and fund balances 241,272$ 77,397$ 11,200$ 9,828$
STATE OF NEW MEXICO
Special Revenue
June 30, 2016
Combining Balance Sheet
Nonmajor Governmental Funds
Town of Taos
The accompanying notes are an integral part of these financial statements.
88
Statement A-1
Page 2 of 3
Special Revenue
Capital/Maintenance
/Operating Fund
2015 NMFA
Fire Pumper
2009 NMFA
PPRF
Disadvantage
Program- Eco
Park
2008 Gross
Receipts Tax
Revenue Bond
Retirement
NMFA Debt
Service Reserve
Eco Park
2007 NMFA
Land Purchase
194,058$ -$ 216$ 1$ 10,105 170$
- - - - 176,611 -
- - - - - -
- - - - - -
194,058$ -$ 216$1$186,716$ 170$
42,495$ -$ -$ -$ -$ -$
- - - - - -
- - - - - -
42,495 - - - - -
- - - - - -
- - - - - -
- - - - - -
- - - - - -
- - - - - -
- - 216 1 186,716 170
- - - - - -
- - - - - -
- - - - - -
- - - - - -
151,563 - - - - -
- - - - - -
151,563 - 216 1 186,716 170
194,058$ -$ 216$1$186,716$ 170$
Debt Service
The accompanying notes are an integral part of these financial statements.
89
2011 PPRF
Street
Improvement
2011 PPRF
Street
Improvement
Reserve
Facilities
Improvements Capital Projects
Assets
Cash and cash equivalents 3,191$ 5,451 311,390$ 41,177$
Investments -165,532 -414,821
Receivables:
Other taxes ---132,717
Due from other governments ----
Total assets 3,191$ 170,983$ 311,390$ 588,715$
Liabilities
Accounts payable -$-$-$-$
Accrued payroll ----
Deposits held in trust for others ----
Total liabilities ----
Fund balances
Spendable
Restricted for:
General government ----
Public safety ----
Culture and recreation ----
Fire protection ----
Health and welfare ----
Debt service expenditures 3,191 170,983 --
Capital projects ----
Committed for:
General government ----
Public safety ----
Transportation ----
Capital projects --311,390 588,715
Unassigned ----
Total fund balances 3,191 170,983 311,390 588,715
Total liabilities and fund balances 3,191$ 170,983$ 311,390$ 588,715$
June 30, 2016
Combining Balance Sheet
Nonmajor Governmental Funds
Town of Taos
STATE OF NEW MEXICO
Debt Service Capital Projects
The accompanying notes are an integral part of these financial statements.
90
Statement A-1
Page 3 of 3
Vehicle
Replacement
1994 Gross
Receipts Tax
Revenue Bond
Acquisition
1999 Gasoline
Tax Acquisition
Total Nonmajor
Governmental
Funds
1,401$ 87,372$ 700,333$ 2,236,489$
26,000 423,153 151 1,903,749
- - - 455,375
- - 119,603 218,479
27,401$ 510,525$ 820,087$ 4,814,092$
-$ 3,374$ 5,015$ 188,838$
- - - 14,024
- - - 5,103
- 3,374 5,015 207,965
- - - 252,472
- - - 76,101
- - - 782,808
- - - 311,488
- - - 1
- - - 361,277
- 507,151 815,072 1,322,223
- - - 265,139
- - - 9,828
- - - 148,044
27,401 - - 1,079,069
- - - (2,323)
27,401 507,151 815,072 4,606,127
27,401$ 510,525$ 820,087$ 4,814,092$
Capital Projects
The accompanying notes are an integral part of these financial statements.
91
Fire Protection Recreation Lodgers Tax
Local
Governmental
Correction
Revenues
Taxes:
Gross receipts -$-$-$-$
Gasoline and motor vehicle taxes ----
Lodgers taxes --1,189,267 -
Intergovernmental income:
Federal operating grants ----
Federal capital grants ----
State operating grants 242,127 ---
State capital grants ----
Charges for services -606 118,432 52,664
Licenses and fees ---13,855
Investment income 970 ---
Miscellaneous -10,561 7,094 -
Total revenues 243,097 11,167 1,314,793 66,519
Expenditures
Current:
General government ----
Public safety 80,291 --49,558
Public works ----
Culture and recreation -23,858 1,035,147 -
Health and welfare ----
Capital outlay 464,904 ---
Debt service:
Principal ----
Interest ----
Total expenditures 545,195 23,858 1,035,147 49,558
Excess (deficiency) of revenues over
expenditures (302,098) (12,691) 279,646 16,961
Other financing sources (uses)
Transfers in -22,360 --
Transfers out (73,634) -(108,871) -
Total other financing sources (uses)(73,634) 22,360 (108,871) -
Net change in fund balances (375,732) 9,669 170,775 16,961
Fund balances - beginning of year 687,220 11,989 590,375 59,140
Fund balances - end of year 311,488$ 21,658$ 761,150$ 76,101$
Special Revenue
For the Year Ended June 30, 2016
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances
Nonmajor Governmental Funds
Town of Taos
STATE OF NEW MEXICO
The accompanying notes are an integral part of these financial statements.
92
Statement A-2
Page 1 of 3
Law
Enforcement
Protection Civic Center
Domestic
Violence Shelter
Public
Transportation
Community
Grants
Municipal Road
Gasoline Tax
-$ -$ -$ -$ -$ -$
- - - - - 121,457
- - - - - -
- - 139,702 - 60,449 -
- - - - - -
32,000 - - - 353,448 -
- - - - 26,249 -
- 100 - 1,347 - -
- - - - - -
- - - - - -
- - - 87 - -
32,000 100 139,702 1,434 440,146 121,457
- - - - 541,032 -
33,943 - - - - -
- - - - - -
- 100 - - - -
- - 139,702 47,179 - -
- - - - 19,985 -
- - - - - -
- - - - - -
33,943 100 139,702 47,179 561,017 -
(1,943) - - (45,745) (120,871) 121,457
- - - 108,871 162,474 -
- - - - (70,000) (121,457)
- - - 108,871 92,474 (121,457)
(1,943) - - 63,126 (28,397) -
1,943 (2,323) 1 84,918 216,742 -
-$ (2,323)$ 1$ 148,044$ 188,345$ -$
Special Revenue
The accompanying notes are an integral part of these financial statements.
93
1/4 Cent
Municipal
Gross Receipts
Tax
Historical
District Communications
Confidential
Informant
Revenues
Taxes:
Gross receipts 1,005,369$ -$ -$ -$
Gasoline and motor vehicle taxes - - - -
Lodgers taxes - - - -
Intergovernmental income:
Federal operating grants - - - -
Federal capital grants - - - -
State operating grants - - - -
State capital grants - - - -
Charges for services - - - -
Licenses and fees - 111,352 - -
Investment income - - - -
Miscellaneous - - - -
Total revenues 1,005,369 111,352 - -
Expenditures
Current:
General government - - - -
Public safety - - - -
Public works - - - -
Culture and recreation - 96,887 - -
Health and welfare - - - -
Capital outlay - - - -
Debt service:
Principal - - - -
Interest - - - -
Total expenditures - 96,887 - -
Excess (deficiency) of revenues over
expenditures 1,005,369 14,465 - -
Other financing sources (uses)
Transfers in - - - -
Transfers out (949,133) - - -
Total other financing sources (uses)(949,133) - - -
Net change in fund balances 56,236 14,465 - -
Fund balances - beginning of year 185,036 62,329 11,200 9,828
Fund balances - end of year 241,272$ 76,794$ 11,200$ 9,828$
For the Year Ended June 30, 2016
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances
Nonmajor Governmental Funds
Town of Taos
STATE OF NEW MEXICO
Special Revenue
The accompanying notes are an integral part of these financial statements.
94
Statement A-2
Page 2 of 3
Special Revenue
Capital/Maintenance/
Operating Fund
2015 NMFA
Fire Pumper
2009 NMFA
PPRF
Disadvantage
Program- Eco
Park
2008 Gross
Receipts Tax
Revenue Bond
Retirement
NMFA Debt
Service
Reserve Eco
Park
2007 NMFA
Land Purchase
-$ -$ -$ -$ -$ -$
- - - - - -
- - - - - -
- - - - - -
- - - - - -
- - - - - -
- - - - - -
- - - - - -
- - - - - -
- - - - 1,975 116
- - - - - -
- - - - 1,975 116
335,659 426 - - - 542
- - - - - -
- - - - - -
- - - - - -
- - - - - -
49,797 - - - - -
- 69,840 134,731 300,000 - 106,705
- 3,368 46,025 193,025 - 6,510
385,456 73,634 180,756 493,025 - 113,757
(385,456) (73,634) (180,756) (493,025) 1,975 (113,641)
355,457 73,634 180,753 493,025 - 113,758
- - - - - -
355,457 73,634 180,753 493,025 - 113,758
(29,999) - (3) - 1,975 117
181,562 - 219 1 184,741 53
151,563$ -$ 216$ 1$ 186,716$ 170$
Debt Service
The accompanying notes are an integral part of these financial statements.
95
2011 PPRF
Street
Improvement
2011 PPRF
Street
Improvement
Reserve
Facilities
Improvements Capital Projects
Revenues
Taxes:
Gross receipts -$-$-$754,027$
Gasoline and motor vehicle taxes ----
Lodgers taxes ----
Intergovernmental income:
Federal operating grants ----
Federal capital grants --500,000 -
State operating grants ----
State capital grants ---99,440
Charges for services ----
Licenses and fees ----
Investment income 1,576 258 -1,080
Miscellaneous ----
Total revenues 1,576 258 500,000 854,547
Expenditures
Current:
General government ----
Public safety ----
Public works ---74,585
Culture and recreation ----
Health and welfare ----
Capital outlay --635,517 66,289
Debt service:
Principal 147,767 ---
Interest 21,746 ---
Total expenditures 169,513 -635,517 140,874
Excess (deficiency) of revenues over
expenditures (167,937) 258 (135,517) 713,673
Other financing sources (uses)
Transfers in 169,514 -50,000 -
Transfers out ---(725,079)
Total other financing sources (uses)169,514 -50,000 (725,079)
Net change in fund balances 1,577 258 (85,517) (11,406)
Fund balances - beginning of year 1,614 170,725 396,907 600,121
Fund balances - end of year 3,191$ 170,983$ 311,390$ 588,715$
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances
For the Year Ended June 30, 2016
Nonmajor Governmental Funds
Town of Taos
STATE OF NEW MEXICO
Debt Service Capital Projects
The accompanying notes are an integral part of these financial statements.
96
Statement A-2
Page 3 of 3
Vehicle
Replacement
1994 Gross
Receipts Tax
Revenue Bond
Acquisition
1999 Gasoline
Tax Acquisition
Total Nonmajor
Governmental
Funds
-$-$-$1,759,396$
---121,457
---1,189,267
---200,151
---500,000
---627,575
-50,000 408,713 584,402
---173,149
---125,207
-1,118 -7,093
---17,742
-51,118 408,713 5,305,439
---877,659
---163,792
-3,374 116,201 194,160
---1,155,992
---186,881
--846,635 2,083,127
---759,043
---270,674
-3,374 962,836 5,691,328
-47,744 (554,123) (385,889)
--939,682 2,669,528
---(2,048,174)
--939,682 621,354
-47,744 385,559 235,465
27,401 459,407 429,513 4,370,662
27,401$ 507,151$ 815,072$ 4,606,127$
Capital Projects
The accompanying notes are an integral part of these financial statements.
97
Statement B-1
Variances
Favorable
(Unfavorable)
Original Final Actual Final to Actual
Revenues
Taxes:
Property taxes -$ -$ -$ -$
Gross receipts - - - -
Gasoline and motor vehicle - - - -
Other - - - -
Intergovernmental income:
Federal operating grants - - - -
Federal capital grants - - - -
State operating grants 242,701 242,701 242,127 (574)
State capital grants - - - -
Charges for services - - - -
Licenses and fees - - - -
Investment income (loss)- - 970 970
Miscellaneous - - - -
Total revenues 242,701 242,701 243,097 396
Expenditures
Current:
General government - - - -
Public safety 219,304 199,383 80,291 119,092
Public works - - - -
Culture and recreation - - - -
Health and welfare - - - -
Capital outlay 636,983 656,904 464,904 192,000
Debt service:
Principal - - - -
Interest - - - -
Total expenditures 856,287 856,287 545,195 311,092
Excess (deficiency) of revenues over
expenditures (613,586) (613,586) (302,098) 311,488
Other financing sources (uses)
Budgeted (increase) decrease in fund balance 687,220 687,220 - (687,220)
Transfers in - - - -
Transfers out (73,634) (73,634) (73,634) -
Total other financing sources (uses)613,586 613,586 (73,634) (687,220)
Net change in fund balance - - (375,732) (375,732)
Fund balance - beginning of year - - 687,220 687,220
Fund balance - end of year -$ -$ 311,488$ 311,488$
Budgeted Amounts
STATE OF NEW MEXICO
For the Year Ended June 30, 2016
Budget (GAAP Basis) and Actual
Statement of Revenues, Expenditures, and Changes in Fund Balance
Fire Protection Special Revenue Fund
Town of Taos
The accompanying notes are an integral part of these financial statements.
98
Statement B-2
Variances
Favorable
(Unfavorable)
Original Final Actual Final to Actual
Revenues
Taxes:
Property taxes -$ -$ -$ -$
Gross receipts - - - -
Gasoline and motor vehicle - - - -
Other - - - -
Intergovernmental income:
Federal operating grants - - - -
Federal capital grants - - - -
State operating grants - - - -
State capital grants - - - -
Charges for services 2,984 2,864 606 (2,258)
Licenses and fees - - - -
Investment income (loss)- - - -
Miscellaneous - 5,773 10,561 4,788
Total revenues 2,984 8,637 11,167 2,530
Expenditures
Current:
General government - - - -
Public safety - - - -
Public works - - - -
Culture and recreation 12,967 40,979 23,858 17,121
Health and welfare - - - -
Capital outlay - - - -
Debt service:
Principal - - - -
Interest - - - -
Total expenditures 12,967 40,979 23,858 17,121
Excess (deficiency) of revenues over
expenditures (9,983) (32,342) (12,691) 19,651
Other financing sources (uses)
Budgeted (increase) decrease in fund balance 9,983 9,982 - (9,982)
Transfers in - 22,360 22,360 -
Transfers out - - - -
Total other financing sources (uses)9,983 32,342 22,360 (9,982)
Net change in fund balance - - 9,669 9,669
Fund balance - beginning of year - - 11,989 11,989
Fund balance - end of year -$ -$ 21,658$ 21,658$
Statement of Revenues, Expenditures, and Changes in Fund Balance
Recreation Special Revenue Fund
Town of Taos
STATE OF NEW MEXICO
Budgeted Amounts
For the Year Ended June 30, 2016
Budget (GAAP Basis) and Actual
The accompanying notes are an integral part of these financial statements.
99
Statement B-3
Variances
Favorable
(Unfavorable)
Original Final Actual Final to Actual
Revenues
Taxes:
Property taxes -$-$-$-$
Gross receipts ----
Gasoline and motor vehicle ----
Lodgers taxes 941,426 1,158,556 1,189,267 30,711
Intergovernmental income:
Federal operating grants ----
Federal capital grants ----
State operating grants ----
State capital grants ----
Charges for services 112,902 112,902 118,432 5,530
Licenses and fees ----
Investment income (loss)----
Miscellaneous 3,000 4,545 7,094 2,549
Total revenues 1,057,328 1,276,003 1,314,793 38,790
Expenditures
Current:
General government ----
Public safety ----
Public works ----
Culture and recreation 967,408 1,194,408 1,035,147 159,261
Health and welfare ----
Capital outlay 38,445 41,445 -41,445
Debt service:
Principal ----
Interest ----
Total expenditures 1,005,853 1,235,853 1,035,147 200,706
Excess (deficiency) of revenues over
expenditures 51,475 40,150 279,646 239,496
Other financing sources (uses)
Budgeted (increase) decrease in fund balance 127,396 68,721 -(68,721)
Transfers in ----
Transfers out (178,871) (108,871) (108,871) -
Total other financing sources (uses)(51,475) (40,150) (108,871) (68,721)
Net change in fund balance --170,775 170,775
Fund balance - beginning of year --590,375 590,375
Fund balance - end of year -$-$761,150$ 761,150$
Budgeted Amounts
STATE OF NEW MEXICO
For the Year Ended June 30, 2016
Budget (GAAP Basis) and Actual
Statement of Revenues, Expenditures, and Changes in Fund Balance
Lodgers Tax Special Revenue Fund
Town of Taos
The accompanying notes are an integral part of these financial statements.
100
Statement B-4
Variances
Favorable
(Unfavorable)
Original Final Actual Final to Actual
Revenues
Taxes:
Property taxes -$-$-$-$
Gross receipts ----
Gasoline and motor vehicle ----
Other ----
Intergovernmental income:
Federal operating grants ----
Federal capital grants ----
State operating grants ----
State capital grants ----
Charges for services 59,190 59,190 52,664 (6,526)
Licenses and fees 22,000 22,000 13,855 (8,145)
Investment income (loss)----
Miscellaneous ----
Total revenues 81,190 81,190 66,519 (14,671)
Expenditures
Current:
General government ----
Public safety 105,000 105,000 49,558 55,442
Public works ----
Culture and recreation ----
Health and welfare ----
Capital outlay ----
Debt service:
Principal ----
Interest ----
Total expenditures 105,000 105,000 49,558 55,442
Excess (deficiency) of revenues over
expenditures (23,810) (23,810) 16,961 40,771
Other financing sources (uses)
Budgeted (increase) decrease in fund balance 23,810 23,810 -(23,810)
Transfers in ----
Transfers out ----
Total other financing sources (uses)23,810 23,810 -(23,810)
Net change in fund balance --16,961 16,961
Fund balance - beginning of year --59,140 59,140
Fund balance - end of year -$-$76,101$ 76,101$
Local Government Correction Special Revenue Fund
Town of Taos
STATE OF NEW MEXICO
Budgeted Amounts
For the Year Ended June 30, 2016
Budget (GAAP Basis) and Actual
Statement of Revenues, Expenditures, and Changes in Fund Balance
The accompanying notes are an integral part of these financial statements.
101
Statement B-5
Variances
Favorable
(Unfavorable)
Original Final Actual Final to Actual
Revenues
Taxes:
Property taxes -$ -$ -$ -$
Gross receipts - - - -
Gasoline and motor vehicle - - - -
Other - - - -
Intergovernmental income:
Federal operating grants - - - -
Federal capital grants - - - -
State operating grants 32,000 32,000 32,000 -
State capital grants - - - -
Charges for services - - - -
Licenses and fees - - - -
Investment income (loss)- - - -
Miscellaneous - - - -
Total revenues 32,000 32,000 32,000 -
Expenditures
Current:
General government - - - -
Public safety 33,943 33,943 33,943 -
Public works - - - -
Culture and recreation - - - -
Health and welfare - - - -
Capital outlay - - - -
Debt service:
Principal - - - -
Interest - - - -
Total expenditures 33,943 33,943 33,943 -
Excess (deficiency) of revenues over
expenditures (1,943) (1,943) (1,943) -
Other financing sources (uses)
Budgeted (increase) decrease in fund balance 1,943 1,943 - (1,943)
Transfers in - - - -
Transfers out - - - -
Total other financing sources (uses)1,943 1,943 - (1,943)
Net change in fund balance - - (1,943) (1,943)
Fund balance - beginning of year - - 1,943 1,943
Fund balance - end of year -$ -$ -$ -$
Law Enforcement Protection Special Revenue Fund
Town of Taos
STATE OF NEW MEXICO
Budgeted Amounts
For the Year Ended June 30, 2016
Budget (GAAP Basis) and Actual
Statement of Revenues, Expenditures, and Changes in Fund Balance
The accompanying notes are an integral part of these financial statements.
102
Statement B-6
Variances
Favorable
(Unfavorable)
Original Final Actual Final to Actual
Revenues
Taxes:
Property taxes -$ -$ -$ -$
Gross receipts - - - -
Gasoline and motor vehicle - - - -
Other - - - -
Intergovernmental income:
Federal operating grants - - - -
Federal capital grants - - - -
State operating grants - - - -
State capital grants - - - -
Charges for services - - 100 100
Licenses and fees - - - -
Investment income (loss)- - - -
Miscellaneous - - - -
Total revenues - - 100 100
Expenditures
Current:
General government - - - -
Public safety - - - -
Public works - - - -
Culture and recreation 2,780 2,780 100 2,680
Health and welfare - - - -
Capital outlay - - - -
Debt service:
Principal - - - -
Interest - - - -
Total expenditures 2,780 2,780 100 2,680
Excess (deficiency) of revenues over
expenditures (2,780) (2,780) - 2,780
Other financing sources (uses)
Budgeted (increase) decrease in fund balance 2,780 2,780 - (2,780)
Transfers in - - - -
Transfers out - - - -
Total other financing sources (uses)2,780 2,780 - (2,780)
Net change in fund balance - - - -
Fund balance - beginning of year - - (2,323) (2,323)
Fund balance - end of year -$ -$ (2,323)$ (2,323)$
Civic Center Special Revenue Fund
Town of Taos
STATE OF NEW MEXICO
Budgeted Amounts
For the Year Ended June 30, 2016
Budget (GAAP Basis) and Actual
Statement of Revenues, Expenditures, and Changes in Fund Balance
The accompanying notes are an integral part of these financial statements.
103
Statement B-7
Variances
Favorable
(Unfavorable)
Original Final Actual Final to Actual
Revenues
Taxes:
Property taxes -$ -$ -$ -$
Gross receipts - - - -
Gasoline and motor vehicle - - - -
Other - - - -
Intergovernmental income:
Federal operating grants 139,702 139,702 139,702 -
Federal capital grants - - - -
State operating grants - - - -
State capital grants - - - -
Charges for services - - - -
Licenses and fees - - - -
Investment income (loss)- - - -
Miscellaneous - - - -
Total revenues 139,702 139,702 139,702 -
Expenditures
Current:
General government - - - -
Public safety - - - -
Public works - - - -
Culture and recreation - - - -
Health and welfare 139,702 139,702 139,702 -
Capital outlay - - - -
Debt service:
Principal - - - -
Interest - - - -
Total expenditures 139,702 139,702 139,702 -
Excess (deficiency) of revenues over
expenditures - - - -
Other financing sources (uses)
Budgeted (increase) decrease in fund balance - - - -
Transfers in - - - -
Transfers out - - - -
Total other financing sources (uses)- - - -
Net change in fund balance - - - -
Fund balance - beginning of year - - 1 1
Fund balance - end of year -$ -$ 1$ 1$
Domestic Violence Shelter Special Revenue Fund
Town of Taos
STATE OF NEW MEXICO
Budgeted Amounts
For the Year Ended June 30, 2016
Budget (GAAP Basis) and Actual
Statement of Revenues, Expenditures, and Changes in Fund Balance
The accompanying notes are an integral part of these financial statements.
104
Statement B-8
Variances
Favorable
(Unfavorable)
Original Final Actual Final to Actual
Revenues
Taxes:
Property taxes -$-$-$-$
Gross receipts ----
Gasoline and motor vehicle ----
Other ----
Intergovernmental income:
Federal operating grants ----
Federal capital grants ----
State operating grants 502,395 502,395 -(502,395)
State capital grants ----
Charges for services 81,500 81,500 1,347 (80,153)
Licenses and fees ----
Investment income (loss)----
Miscellaneous --87 87
Total revenues 583,895 583,895 1,434 (582,461)
Expenditures
Current:
General government ----
Public safety ----
Public works ----
Culture and recreation ----
Health and welfare 567,464 567,464 47,179 520,285
Capital outlay 213,500 213,500 -213,500
Debt service:
Principal ----
Interest ----
Total expenditures 780,964 780,964 47,179 733,785
Excess (deficiency) of revenues over
expenditures (197,069) (197,069) (45,745) 151,324
Other financing sources (uses)
Budgeted (increase) decrease in fund balance 18,198 88,198 -(88,198)
Transfers in 178,871 108,871 108,871 -
Transfers out ----
Proceeds from sale of capital assets ----
Total other financing sources (uses)197,069 197,069 108,871 (88,198)
Net change in fund balance --63,126 63,126
Fund balance - beginning of year --84,918 84,918
Fund balance - end of year -$-$148,044$ 148,044$
Public Transportation Special Revenue Fund
Town of Taos
STATE OF NEW MEXICO
Budgeted Amounts
For the Year Ended June 30, 2016
Budget (GAAP Basis) and Actual
Statement of Revenues, Expenditures, and Changes in Fund Balance
The accompanying notes are an integral part of these financial statements.
105
Statement B-9
Variances
Favorable
(Unfavorable)
Original Final Actual Final to Actual
Revenues
Taxes:
Property taxes -$-$-$-$
Gross receipts ----
Gasoline and motor vehicle ----
Other ----
Intergovernmental income:
Federal operating grants 119,676 119,676 60,449 (59,227)
Federal capital grants ----
State operating grants 580,000 604,287 353,448 (250,839)
State capital grants --26,249 26,249
Charges for services ----
Licenses and fees ----
Investment income (loss)----
Miscellaneous ----
Total revenues 699,676 723,963 440,146 (283,817)
Expenditures
Current:
General government 1,047,700 991,126 541,032 450,094
Public safety ----
Public works ----
Culture and recreation ----
Health and welfare ----
Capital outlay -19,986 19,985 1
Debt service:
Principal ----
Interest ----
Total expenditures 1,047,700 1,011,112 561,017 450,095
Excess (deficiency) of revenues over
expenditures (348,024) (287,149) (120,871) 166,278
Other financing sources (uses)
Budgeted (increase) decrease in fund balance 191,550 194,675 -(194,675)
Proceeds from issuance of debt ----
Transfers in 156,474 162,474 162,474 -
Transfers out -(70,000) (70,000) -
Total other financing sources (uses)348,024 287,149 92,474 (194,675)
Net change in fund balance --(28,397) (28,397)
Fund balance - beginning of year --216,742 216,742
Fund balance - end of year -$-$188,345$ 188,345$
Statement of Revenues, Expenditures, and Changes in Fund Balance
Community Grants Special Revenue Fund
Town of Taos
STATE OF NEW MEXICO
Budgeted Amounts
For the Year Ended June 30, 2016
Budget (GAAP Basis) and Actual
The accompanying notes are an integral part of these financial statements.
106
Statement B-10
Variances
Favorable
(Unfavorable)
Original Final Actual Final to Actual
Revenues
Taxes:
Property taxes -$ -$ -$ -$
Gross receipts - - - -
Gasoline and motor vehicle 116,399 121,457 121,457 -
Other - - - -
Intergovernmental income:
Federal operating grants - - - -
Federal capital grants - - - -
State operating grants - - - -
State capital grants - - - -
Charges for services - - - -
Licenses and fees - - - -
Investment income (loss)- - - -
Miscellaneous - - - -
Total revenues 116,399 121,457 121,457 -
Expenditures
Current:
General government - - - -
Public safety - - - -
Public works - - - -
Culture and recreation - - - -
Health and welfare - - - -
Capital outlay - - - -
Debt service:
Principal - - - -
Interest - - - -
Total expenditures - - - -
Excess (deficiency) of revenues over
expenditures 116,399 121,457 121,457 -
Other financing sources (uses)
Budgeted (increase) decrease in fund balance - - - -
Transfers in - - - -
Transfers out (116,399) (121,457) (121,457) -
Total other financing sources (uses)(116,399) (121,457) (121,457) -
Net change in fund balance - - - -
Fund balance - beginning of year - - - -
Fund balance - end of year -$ -$ -$ -$
Municipal Road Gasoline Tax Special Revenue Fund
Town of Taos
STATE OF NEW MEXICO
Budgeted Amounts
For the Year Ended June 30, 2016
Budget (GAAP Basis) and Actual
Statement of Revenues, Expenditures, and Changes in Fund Balance
The accompanying notes are an integral part of these financial statements.
107
Statement B-11
Variances
Favorable
(Unfavorable)
Original Final Actual Final to Actual
Revenues
Taxes:
Property taxes -$ -$ -$ -$
Gross receipts 931,183 995,502 1,005,369 9,867
Gasoline and motor vehicle - - - -
Other - - - -
Intergovernmental income:
Federal operating grants - - - -
Federal capital grants - - - -
State operating grants - - - -
State capital grants - - - -
Charges for services - - - -
Licenses and fees - - - -
Investment income (loss)- - - -
Miscellaneous - - - -
Total revenues 931,183 995,502 1,005,369 9,867
Expenditures
Current:
General government - - - -
Public safety - - - -
Public works - - - -
Culture and recreation - - - -
Health and welfare - - - -
Capital outlay - - - -
Debt service:
Principal - - - -
Interest - - - -
Total expenditures - - - -
Excess (deficiency) of revenues over
expenditures 931,183 995,502 1,005,369 9,867
Other financing sources (uses)
Budgeted (increase) decrease in fund balance 17,948 (46,369) - 46,369
Transfers in - - - -
Transfers out (949,131) (949,133) (949,133) -
Total other financing sources (uses)(931,183) (995,502) (949,133) 46,369
Net change in fund balance - - 56,236 56,236
Fund balance - beginning of year - - 185,036 185,036
Fund balance - end of year -$ -$ 241,272$ 241,272$
Statement of Revenues, Expenditures, and Changes in Fund Balance
1/4 Cent Municipal Gross Receipts Tax Special Revenue Fund
Town of Taos
STATE OF NEW MEXICO
Budgeted Amounts
For the Year Ended June 30, 2016
Budget (GAAP Basis) and Actual
The accompanying notes are an integral part of these financial statements.
108
Statement B-12
Variances
Favorable
(Unfavorable)
Original Final Actual Final to Actual
Revenues
Taxes:
Property taxes -$ -$ -$ -$
Gross receipts - - - -
Gasoline and motor vehicle - - - -
Other - - - -
Intergovernmental income:-
Federal operating grants - - - -
Federal capital grants - - - -
State operating grants - - - -
State capital grants - - - -
Charges for services - - - -
Licenses and fees 129,423 106,501 111,352 4,851
Investment income (loss)- - - -
Miscellaneous - - - -
Total revenues 129,423 106,501 111,352 4,851
Expenditures
Current:
General government - - - -
Public safety - - - -
Public works - - - -
Culture and recreation 166,869 143,947 96,887 47,060
Health and welfare - - - -
Capital outlay - - - -
Debt service:
Principal - - - -
Interest - - - -
Total expenditures 166,869 143,947 96,887 47,060
Excess (deficiency) of revenues over
expenditures (37,446) (37,446) 14,465 51,911
Other financing sources (uses)
Budgeted (increase) decrease in fund balance 37,446 37,446 - (37,446)
Transfers in - - - -
Transfers out - - - -
Total other financing sources (uses)37,446 37,446 - (37,446)
Net change in fund balance - - 14,465 14,465
Fund balance - beginning of year - - 62,329 62,329
Fund balance - end of year -$ -$ 76,794$ 76,794$
Budgeted Amounts
STATE OF NEW MEXICO
Town of Taos
Historical District Special Revenue Fund
Statement of Revenues, Expenditures, and Changes in Fund Balance
Budget (GAAP Basis) and Actual
For the Year Ended June 30, 2016
The accompanying notes are an integral part of these financial statements.
109
Statement B-13
Variances
Favorable
(Unfavorable)
Original Final Actual Final to Actual
Revenues
Taxes:
Property taxes -$ -$ -$ -$
Gross receipts - - - -
Gasoline and motor vehicle - - - -
Other - - - -
Intergovernmental income:
Federal operating grants - - - -
Federal capital grants - - - -
State operating grants - - - -
State capital grants - - - -
Charges for services - - - -
Licenses and fees - - - -
Investment income (loss)- - - -
Miscellaneous - - - -
Total revenues - - - -
Expenditures
Current:
General government - - - -
Public safety - - - -
Public works - - - -
Culture and recreation - - - -
Health and welfare - - - -
Capital outlay - - - -
Debt service:
Principal - - - -
Interest - - - -
Total expenditures - - - -
Excess (deficiency) of revenues over
expenditures - - - -
Other financing sources (uses)
Budgeted (increase) decrease in fund balance - - - -
Transfers in - - - -
Transfers out - - - -
Total other financing sources (uses)- - - -
Net change in fund balance - - - -
Fund balance - beginning of year - - 11,200 11,200
Fund balance - end of year -$ -$ 11,200$ 11,200$
Communications Special Revenue Fund
Town of Taos
STATE OF NEW MEXICO
Budgeted Amounts
For the Year Ended June 30, 2016
Budget (GAAP Basis) and Actual
Statement of Revenues, Expenditures, and Changes in Fund Balance
The accompanying notes are an integral part of these financial statements.
110
Statement B-14
Variances
Favorable
(Unfavorable)
Original Final Actual Final to Actual
Revenues
Taxes:
Property taxes -$-$-$-$
Gross receipts ----
Gasoline and motor vehicle ----
Other ----
Intergovernmental income:
Federal operating grants ----
Federal capital grants ----
State operating grants ----
State capital grants ----
Charges for services ----
Licenses and fees ----
Investment income (loss)----
Miscellaneous ----
Total revenues ----
Expenditures
Current:
General government -4,328 -4,328
Public safety ----
Public works ----
Culture and recreation ----
Health and welfare ----
Capital outlay ----
Debt service:
Principal ----
Interest ----
Total expenditures -4,328 -4,328
Excess (deficiency) of revenues over
expenditures -(4,328) -4,328
Other financing sources (uses)
Budgeted (increase) decrease in fund balance -4,328 -(4,328)
Transfers in ----
Transfers out ----
Total other financing sources (uses)-4,328 -(4,328)
Net change in fund balance ----
Fund balance - beginning of year --9,828 9,828
Fund balance - end of year -$-$9,828$ 9,828$
Budgeted Amounts
STATE OF NEW MEXICO
Town of Taos
Confidential Informant Special Revenue Fund
Statement of Revenues, Expenditures, and Changes in Fund Balance
Budget (GAAP Basis) and Actual
For the Year Ended June 30, 2016
The accompanying notes are an integral part of these financial statements.
111
Statement B-15
Variances
Favorable
(Unfavorable)
Original Final Actual Final to Actual
Revenues
Taxes:
Property taxes -$ -$ -$ -$
Gross receipts - - - -
Gasoline and motor vehicle - - - -
Other - - - -
Intergovernmental income:
Federal operating grants - - - -
Federal capital grants - - - -
State operating grants - - - -
State capital grants - - - -
Charges for services - - - -
Licenses and fees - - - -
Investment income (loss)- - - -
Miscellaneous - - - -
Total revenues - - - -
Expenditures
Current:
General government 427,499 358,213 335,659 22,554
Public safety - - - -
Public works - - - -
Culture and recreation - - - -
Health and welfare - - - -
Capital outlay 30,000 175,668 49,797 125,871
Debt service:-
Principal - - - -
Interest - - - -
Total expenditures 457,499 533,881 385,456 148,425
Excess (deficiency) of revenues over
expenditures (457,499) (533,881) (385,456) 148,425
Other financing sources (uses)
Budgeted (increase) decrease in fund balance 172,042 178,424 - (178,424)
Transfers in 285,457 355,457 355,457 -
Transfers out - - - -
Total other financing sources (uses)457,499 533,881 355,457 (178,424)
Net change in fund balance - - (29,999) (29,999)
Fund balance - beginning of year - - 181,562 181,562
Fund balance - end of year -$ -$ 151,563$ 151,563$
Budgeted Amounts
STATE OF NEW MEXICO
Town of Taos
Capital/Maintenance/Operating Special Revenue Fund
Statement of Revenues, Expenditures, and Changes in Fund Balance
Budget (GAAP Basis) and Actual
For the Year Ended June 30, 2016
The accompanying notes are an integral part of these financial statements.
112
Statement B-16
Variances
Favorable
(Unfavorable)
Original Final Actual Final to Actual
Revenues
Taxes:
Property taxes -$-$-$-$
Gross receipts ----
Gasoline and motor vehicle ----
Other ----
Intergovernmental income:
Federal operating grants ----
Federal capital grants ----
State operating grants ----
State capital grants ----
Charges for services ----
Licenses and fees ----
Investment income (loss)----
Miscellaneous ----
Total revenues ----
Expenditures
Current:
General government 426 426 426 -
Public safety ----
Public works ----
Culture and recreation ----
Health and welfare ----
Capital outlay ----
Debt service:-
Principal 69,840 69,840 69,840 -
Interest 3,368 3,368 3,368 -
Total expenditures 73,634 73,634 73,634 -
Excess (deficiency) of revenues over
expenditures (73,634) (73,634) (73,634) -
Other financing sources (uses)
Budgeted (increase) decrease in fund balance ----
Transfers in 73,634 73,634 73,634 -
Transfers out ----
Total other financing sources (uses)73,634 73,634 73,634 -
Net change in fund balance ----
Fund balance - beginning of year ----
Fund balance - end of year -$-$-$-$
Budgeted Amounts
STATE OF NEW MEXICO
Town of Taos
2015 NMFA Fire Pumper Debt Service Fund
Statement of Revenues, Expenditures, and Changes in Fund Balance
Budget (GAAP Basis) and Actual
For the Year Ended June 30, 2016
The accompanying notes are an integral part of these financial statements.
113
Statement B-17
Variances
Favorable
(Unfavorable)
Original Final Actual Final to Actual
Revenues
Taxes:
Property taxes -$ -$ -$ -$
Gross receipts - - - -
Gasoline and motor vehicle - - - -
Other - - - -
Intergovernmental income:
Federal operating grants - - - -
Federal capital grants - - - -
State operating grants - - - -
State capital grants - - - -
Charges for services - - - -
Licenses and fees - - - -
Investment income (loss)- - - -
Miscellaneous - - - -
Total revenues - - - -
Expenditures
Current:
General government - - - -
Public safety - - - -
Public works - - - -
Culture and recreation - - - -
Health and welfare - - - -
Capital outlay - - - -
Debt service:
Principal 134,731 134,731 134,731 -
Interest 46,025 46,025 46,025 -
Total expenditures 180,756 180,756 180,756 -
Excess (deficiency) of revenues over
expenditures (180,756) (180,756) (180,756) -
Other financing sources (uses)
Budgeted (increase) decrease in fund balance 3 3 - (3)
Transfers in 180,753 180,753 180,753 -
Transfers out - - - -
Total other financing sources (uses)180,756 180,756 180,753 (3)
Net change in fund balance - - (3) (3)
Fund balance - beginning of year - - 219 219
Fund balance - end of year -$ -$ 216$ 216$
2009 NMFA PPRF Disadvantage Program- Eco Park Debt Service Fund
Town of Taos
STATE OF NEW MEXICO
Budgeted Amounts
For the Year Ended June 30, 2016
Budget (GAAP Basis) and Actual
Statement of Revenues, Expenditures, and Changes in Fund Balance
The accompanying notes are an integral part of these financial statements.
114
Statement B-18
Variances
Favorable
(Unfavorable)
Original Final Actual Final to Actual
Revenues
Taxes:
Property taxes -$ -$ -$ -$
Gross receipts - - - -
Gasoline and motor vehicle - - - -
Other - - - -
Intergovernmental income:
Federal operating grants - - - -
Federal capital grants - - - -
State operating grants - - - -
State capital grants - - - -
Charges for services - - - -
Licenses and fees - - - -
Investment income (loss)- - - -
Miscellaneous - - - -
Total revenues - - - -
Expenditures
Current:
General government - - - -
Public safety - - - -
Public works - - - -
Culture and recreation - - - -
Health and welfare - - - -
Capital outlay - - - -
Debt service:
Principal 300,000 300,000 300,000 -
Interest 193,025 193,025 193,025 -
Total expenditures 493,025 493,025 493,025 -
Excess (deficiency) of revenues over
expenditures (493,025) (493,025) (493,025) -
Other financing sources (uses)
Budgeted (increase) decrease in fund balance 1 - - -
Transfers in 493,024 493,025 493,025 -
Transfers out - - - -
Total other financing sources (uses)493,025 493,025 493,025 -
Net change in fund balance - - - -
Fund balance - beginning of year - - 1 1
Fund balance - end of year -$ -$ 1$ 1$
Statement of Revenues, Expenditures, and Changes in Fund Balance
2008 Gross Receipts Tax Revenue Bond Retirement Debt Service Fund
Town of Taos
STATE OF NEW MEXICO
Budgeted Amounts
For the Year Ended June 30, 2016
Budget (GAAP Basis) and Actual
The accompanying notes are an integral part of these financial statements.
115
Statement B-19
Variances
Favorable
(Unfavorable)
Original Final Actual Final to Actual
Revenues
Taxes:
Property taxes -$ -$ -$ -$
Gross receipts - - - -
Gasoline and motor vehicle - - - -
Other - - - -
Intergovernmental income:
Federal operating grants - - - -
Federal capital grants - - - -
State operating grants - - - -
State capital grants - - - -
Charges for services - - - -
Licenses and fees - - - -
Investment income (loss)- - 1,975 1,975
Miscellaneous - - - -
Total revenues - - 1,975 1,975
Expenditures
Current:
General government - - - -
Public safety - - - -
Public works - - - -
Culture and recreation - - - -
Health and welfare - - - -
Capital outlay - - - -
Debt service:
Principal - - - -
Interest - - - -
Total expenditures - - - -
Excess (deficiency) of revenues over
expenditures - - 1,975 1,975
Other financing sources (uses)
Budgeted (increase) decrease in fund balance - - - -
Transfers in - - - -
Transfers out - - - -
Total other financing sources (uses)- - - -
Net change in fund balance - - 1,975 1,975
Fund balance - beginning of year - - 184,741 184,741
Fund balance - end of year -$ -$ 186,716$ 186,716$
NMFA Debt Service Reserve Eco Park Debt Service Fund
Town of Taos
STATE OF NEW MEXICO
Budgeted Amounts
For the Year Ended June 30, 2016
Budget (GAAP Basis) and Actual
Statement of Revenues, Expenditures, and Changes in Fund Balance
The accompanying notes are an integral part of these financial statements.
116
Statement B-20
Variances
Favorable
(Unfavorable)
Original Final Actual Final to Actual
Revenues
Taxes:
Property taxes -$-$-$-$
Gross receipts ----
Gasoline and motor vehicle ----
Other ----
Intergovernmental income:
Federal operating grants ----
Federal capital grants ----
State operating grants ----
State capital grants ----
Charges for services ----
Licenses and fees ----
Investment income (loss)--116 116
Miscellaneous ----
Total revenues --116 116
Expenditures
Current:
General government 542 542 542 -
Public safety ----
Public works ----
Culture and recreation ----
Health and welfare ----
Capital outlay ----
Debt service:
Principal 106,705 106,705 106,705 -
Interest 6,510 6,510 6,510 -
Total expenditures 113,757 113,757 113,757 -
Excess (deficiency) of revenues over
expenditures (113,757) (113,757) (113,641) 116
Other financing sources (uses)
Budgeted (increase) decrease in fund balance -(1)-1
Transfers in 113,757 113,758 113,758 -
Transfers out ----
Total other financing sources (uses)113,757 113,757 113,758 1
Net change in fund balance --117 117
Fund balance - beginning of year --53 53
Fund balance - end of year -$-$170$170$
2007 NMFA Land Purchase Debt Service Fund
Town of Taos
STATE OF NEW MEXICO
For the Year Ended June 30, 2016
Budgeted Amounts
Budget (GAAP Basis) and Actual
Statement of Revenues, Expenditures, and Changes in Fund Balance
The accompanying notes are an integral part of these financial statements.
117
Statement B-21
Variances
Favorable
(Unfavorable)
Original Final Actual Final to Actual
Revenues
Taxes:
Property taxes -$ -$ -$ -$
Gross receipts - - - -
Gasoline and motor vehicle - - - -
Other - - - -
Intergovernmental income:
Federal operating grants - - - -
Federal capital grants - - - -
State operating grants - - - -
State capital grants - - - -
Charges for services - - - -
Licenses and fees - - - -
Investment income (loss)- - 1,576 1,576
Miscellaneous - - - -
Total revenues - - 1,576 1,576
Expenditures
Current:
General government - - - -
Public safety - - - -
Public works - - - -
Culture and recreation - - - -
Health and welfare - - - -
Capital outlay - - - -
Debt service:
Principal 147,767 147,767 147,767 -
Interest 21,746 21,746 21,746 -
Total expenditures 169,513 169,513 169,513 -
Excess (deficiency) of revenues over
expenditures (169,513) (169,513) (167,937) 1,576
Other financing sources (uses)
Budgeted (increase) decrease in fund balance - (1) - 1
Transfers in 169,513 169,514 169,514 -
Transfers out - - - -
Total other financing sources (uses)169,513 169,513 169,514 1
Net change in fund balance - - 1,577 1,577
Fund balance - beginning of year - - 1,614 1,614
Fund balance - end of year -$ -$ 3,191$ 3,191$
2011 PPRF Street Improvement Debt Service Fund
Town of Taos
STATE OF NEW MEXICO
Budgeted Amounts
For the Year Ended June 30, 2016
Budget (GAAP Basis) and Actual
Statement of Revenues, Expenditures, and Changes in Fund Balance
The accompanying notes are an integral part of these financial statements.
118
Statement B-22
Variances
Favorable
(Unfavorable)
Original Final Actual Final to Actual
Revenues
Taxes:
Property taxes -$ -$ -$ -$
Gross receipts - - - -
Gasoline and motor vehicle - - - -
Other - - - -
Intergovernmental income:
Federal operating grants - - - -
Federal capital grants - - - -
State operating grants - - - -
State capital grants - - - -
Charges for services - - - -
Licenses and fees - - - -
Investment income (loss)- - 258 258
Miscellaneous - - - -
Total revenues - - 258 258
Expenditures
Current:
General government - - - -
Public safety - - - -
Public works - - - -
Culture and recreation - - - -
Health and welfare - - - -
Capital outlay - - - -
Debt service:
Principal - - - -
Interest - - - -
Total expenditures - - - -
Excess (deficiency) of revenues over
expenditures - - 258 258
Other financing sources (uses)
Budgeted (increase) decrease in fund balance - - - -
Transfers in - - - -
Transfers out - - - -
Total other financing sources (uses)- - - -
Net change in fund balance - - 258 258
Fund balance - beginning of year - - 170,725 170,725
Fund balance - end of year -$ -$ 170,983$ 170,983$
Statement of Revenues, Expenditures, and Changes in Fund Balance
2011 PPRF Street Improvement Reserve Debt Service Fund
Town of Taos
STATE OF NEW MEXICO
Budgeted Amounts
For the Year Ended June 30, 2016
Budget (GAAP Basis) and Actual
The accompanying notes are an integral part of these financial statements.
119
Statement B-23
Variances
Favorable
(Unfavorable)
Original Final Actual Final to Actual
Revenues
Taxes:
Property taxes -$ -$ -$ -$
Gross receipts - - - -
Gasoline and motor vehicle - - - -
Other - - - -
Intergovernmental income:
Federal operating grants - - - -
Federal capital grants 500,000 500,000 500,000 -
State operating grants 65,000 65,000 - (65,000)
State capital grants - 50,000 - (50,000)
Charges for services - - - -
Licenses and fees - - - -
Investment income (loss)- - - -
Miscellaneous - - - -
Total revenues 565,000 615,000 500,000 (115,000)
Expenditures
Current:
General government - - - -
Public safety - - - -
Public works - - - -
Culture and recreation - - - -
Health and welfare - - - -
Capital outlay 1,049,788 1,049,788 635,517 414,271
Debt service:
Principal - - - -
Interest - - - -
Total expenditures 1,049,788 1,049,788 635,517 414,271
Excess (deficiency) of revenues over
expenditures (484,788) (434,788) (135,517) 299,271
Other financing sources (uses)
Budgeted (increase) decrease in fund balance 434,788 384,788 - (384,788)
Transfers in 50,000 50,000 50,000 -
Transfers out - - - -
Total other financing sources (uses)484,788 434,788 50,000 (384,788)
Net change in fund balance - - (85,517) (85,517)
Fund balance - beginning of year - - 396,907 396,907
Fund balance - end of year -$ -$ 311,390$ 311,390$
Facilities Improvements Capital Projects Fund
Town of Taos
STATE OF NEW MEXICO
Budgeted Amounts
For the Year Ended June 30, 2016
Budget (GAAP Basis) and Actual
Statement of Revenues, Expenditures, and Changes in Fund Balance
The accompanying notes are an integral part of these financial statements.
120
Statement B-24
Variances
Favorable
(Unfavorable)
Original Final Actual Final to Actual
Revenues
Taxes:
Property taxes -$ -$ -$ -$
Gross receipts 706,699 746,627 754,027 7,400
Gasoline and motor vehicle - - - -
Other - - - -
Intergovernmental income:
Federal operating grants - - - -
Federal capital grants - - - -
State operating grants 50,000 50,000 - (50,000)
State capital grants 67,642 107,082 99,440 (7,642)
Charges for services - - - -
Licenses and fees - - - -
Investment income (loss)- - 1,080 1,080
Miscellaneous - - - -
Total revenues 824,341 903,709 854,547 (49,162)
Expenditures
Current:
General government - - - -
Public safety - - - -
Public works 65,132 104,572 74,585 29,987
Culture and recreation - - - -
Health and welfare - - - -
Capital outlay 513,134 513,134 66,289 446,845
Debt service:-
Principal - - - -
Interest - - - -
Total expenditures 578,266 617,706 140,874 476,832
Excess (deficiency) of revenues over
expenditures 246,075 286,003 713,673 427,670
Other financing sources (uses)
Budgeted (increase) decrease in fund balance 479,004 439,076 - (439,076)
Transfers in - - - -
Transfers out (725,079) (725,079) (725,079) -
Total other financing sources (uses)(246,075) (286,003) (725,079) (439,076)
Net change in fund balance - - (11,406) (11,406)
Fund balance - beginning of year - - 600,121 600,121
Fund balance - end of year -$ -$ 588,715$ 588,715$
Capital Projects Capital Projects Fund
Town of Taos
STATE OF NEW MEXICO
Budgeted Amounts
For the Year Ended June 30, 2016
Budget (GAAP Basis) and Actual
Statement of Revenues, Expenditures, and Changes in Fund Balance
The accompanying notes are an integral part of these financial statements.
121
Statement B-25
Variances
Favorable
(Unfavorable)
Original Final Actual Final to Actual
Revenues
Taxes:
Property taxes -$ -$ -$ -$
Gross receipts - - - -
Gasoline and motor vehicle - - - -
Other - - - -
Intergovernmental income:
Federal operating grants - - - -
Federal capital grants - - - -
State operating grants - - - -
State capital grants - - - -
Charges for services - - - -
Licenses and fees - - - -
Investment income (loss)- - - -
Miscellaneous - - - -
Total revenues - - - -
Expenditures
Current:
General government - - - -
Public safety - - - -
Public works - - - -
Culture and recreation - - - -
Health and welfare - - - -
Capital outlay - - - -
Debt service:
Principal - - - -
Interest - - - -
Total expenditures - - - -
Excess (deficiency) of revenues over
expenditures - - - -
Other financing sources (uses)
Budgeted (increase) decrease in fund balance - - - -
Transfers in - - - -
Transfers out - - - -
Total other financing sources (uses)- - - -
Net change in fund balance - - - -
Fund balance - beginning of year - - 27,401 27,401
Fund balance - end of year -$ -$ 27,401$ 27,401$
Vehicle Replacement Capital Projects Fund
Town of Taos
STATE OF NEW MEXICO
Budgeted Amounts
For the Year Ended June 30, 2016
Budget (GAAP Basis) and Actual
Statement of Revenues, Expenditures, and Changes in Fund Balance
The accompanying notes are an integral part of these financial statements.
122
Statement B-26
Variances
Favorable
(Unfavorable)
Original Final Actual Final to Actual
Revenues
Taxes:
Property taxes -$-$-$-$
Gross receipts ----
Gasoline and motor vehicle ----
Other ----
Intergovernmental income:
Federal operating grants ----
Federal capital grants ----
State operating grants ----
State capital grants 50,000 50,000 50,000 -
Charges for services ----
Licenses and fees ----
Investment income (loss)2,000 2,000 1,118 (882)
Miscellaneous ----
Total revenues 52,000 52,000 51,118 (882)
Expenditures
Current:
General government ----
Public safety ----
Public works 18,934 18,934 3,374 15,560
Culture and recreation ----
Health and welfare ----
Capital outlay ----
Debt service:
Principal ----
Interest ----
Total expenditures 18,934 18,934 3,374 15,560
Excess (deficiency) of revenues over
expenditures 33,066 33,066 47,744 14,678
Other financing sources (uses)
Budgeted (increase) decrease in fund balance (33,066) (33,066) -33,066
Transfers in ----
Transfers out ----
Total other financing sources (uses)(33,066) (33,066) -33,066
Net change in fund balance --47,744 47,744
Fund balance - beginning of year --459,407 459,407
Fund balance - end of year -$-$507,151$ 507,151$
1994 Gross Receipts Tax Revenue Bond Acquisition Capital Projects Fund
Town of Taos
STATE OF NEW MEXICO
Budgeted Amounts
For the Year Ended June 30, 2016
Budget (GAAP Basis) and Actual
Statement of Revenues, Expenditures, and Changes in Fund Balance
The accompanying notes are an integral part of these financial statements.
123
Statement B-27
Variances
Favorable
(Unfavorable)
Original Final Actual Final to Actual
Revenues
Taxes:
Property taxes -$ -$ -$ -$
Gross receipts - - - -
Gasoline and motor vehicle - - - -
Other - - - -
Intergovernmental income:
Federal operating grants - - - -
Federal capital grants 500,000 500,000 - (500,000)
State operating grants - - - -
State capital grants 940,619 1,120,619 408,713 (711,906)
Charges for services - - - -
Licenses and fees - - - -
Investment income (loss)2,000 2,000 - (2,000)
Miscellaneous - - - -
Total revenues 1,442,619 1,622,619 408,713 (1,213,906)
Expenditures
Current:
General government - - - -
Public safety - - - -
Public works 55,357 116,202 116,201 1
Culture and recreation - - - -
Health and welfare - - - -
Capital outlay 2,765,269 2,864,424 846,635 2,017,789
Debt service:
Principal - - - -
Interest - - - -
Total expenditures 2,820,626 2,980,626 962,836 2,017,790
Excess (deficiency) of revenues over
expenditures (1,378,007) (1,358,007) (554,123) 803,884
Other financing sources (uses)
Budgeted (increase) decrease in fund balance 410,455 62,398 - (62,398)
Transfers in 967,552 1,295,609 939,682 (355,927)
Transfers out - - - -
Total other financing sources (uses)1,378,007 1,358,007 939,682 (418,325)
Net change in fund balance - - 385,559 385,559
Fund balance - beginning of year - - 429,513 429,513
Fund balance - end of year -$ -$ 815,072$ 815,072$
1999 Gasoline Tax Acquisition Capital Projects Fund
Town of Taos
STATE OF NEW MEXICO
Budgeted Amounts
For the Year Ended June 30, 2016
Budget (GAAP Basis) and Actual
Statement of Revenues, Expenditures, and Changes in Fund Balance
The accompanying notes are an integral part of these financial statements.
124
Statement B-28
Variances
Favorable
(Unfavorable)
Original Final Actual Final to Actual
Revenues
Taxes:
Property taxes -$ -$ -$ -$
Gross receipts - - - -
Gasoline and motor vehicle - - - -
Other - - - -
Intergovernmental income:
Federal operating grants - - - -
Federal capital grants 20,015,029 20,015,029 4,719,204 (15,295,825)
State operating grants - - - -
State capital grants 1,484,594 1,484,594 352,170 (1,132,424)
Charges for services - - - -
Licenses and fees - - - -
Investment income (loss)- - - -
Miscellaneous - - 79,719 79,719
Total revenues 21,499,623 21,499,623 5,151,093 (16,348,530)
Expenditures
Current:
General government - - - -
Public safety - - - -
Public works 86,699 92,514 4,773 87,741
Culture and recreation - - - -
Health and welfare - - - -
Capital outlay 22,154,772 22,149,242 5,418,418 16,730,824
Debt service:
Principal - - - -
Interest - - - -
Total expenditures 22,241,471 22,241,756 5,423,191 16,818,565
Excess (deficiency) of revenues over
expenditures (741,848) (742,133) (272,098) 470,035
Other financing sources (uses)
Budgeted (increase) decrease in fund balance 741,848 742,133 - (742,133)
Transfers in - - - -
Transfers out - - - -
Total other financing sources (uses)741,848 742,133 - (742,133)
Net change in fund balance - - (272,098) (272,098)
Fund balance - beginning of year - - 789,593 789,593
Fund balance - end of year -$ -$ 517,495$ 517,495$
Airport Construction Capital Projects Fund
Town of Taos
STATE OF NEW MEXICO
Budgeted Amounts
For the Year Ended June 30, 2016
Budget (GAAP Basis) and Actual
Statement of Revenues, Expenditures, and Changes in Fund Balance
The accompanying notes are an integral part of these financial statements.
125
Statement B-29STATE OF NEW MEXICO
Budget (GAAP Basis) and Actual
Variances
Favorable
Budget Amounts (Unfavorable)
Original Final Actual Final to Actual
Operating revenues
Charges for services 3,328,061$ 3,328,061$ 3,226,516$ (101,545)$
Total operating revenues 3,328,061 3,328,061 3,226,516 (101,545)
Operating expenses
Personnel services 823,646 734,604 654,657 79,947
Contractual services 1,380,906 1,439,510 1,199,572 239,938
Supplies 165,828 169,742 130,507 39,235
Maintenance and materials 50,798 85,365 67,216 18,149
Utilities 400,958 415,560 347,832 67,728
Equipment 2,220,460 2,245,460 -2,245,460
Miscellaneous 441,633 449,018 218,555 230,463
Total operating expenses 5,484,229 5,539,259 2,618,339 2,920,920
Operating income (loss)(2,156,168) (2,211,198) 608,177 2,819,375
Non-operating revenues (expenses)
Gross receipts taxes 465,592 497,751 691,685 193,934
Interest expense (126,177) (123,477) (135,174) (11,697)
Interest income 4,134 4,134 7,423 3,289
Miscellaneous income --3,722 3,722
Total non-operating revenues
(expenses)343,549 378,408 567,656 189,248
Income (loss)(1,812,619) (1,832,790) 1,175,833 3,008,623
Change in net position (1,812,619)$ (1,832,790)$ 1,175,833 3,008,623$
(Expenses) not budgeted:
Depreciation 1,588,910
Change in net position per Exhibit D-2 (413,077)
Net position - beginning 24,119,804
Net position - ending 23,706,727$
For the Year Ended June 30, 2016
Town of Taos
Statement of Revenues, Expenses, and Changes in Net Position
Water and Sewer Proprietary Fund
The accompanying notes are an integral part of these financial statements.
126
Statement B-30STATE OF NEW MEXICO
Budget (GAAP Basis) and Actual
Variances
Favorable
Budget Amounts (Unfavorable)
Original Final Actual Final to Actual
Operating revenues
Charges for services 1,307,483$ 1,307,483$ 1,450,666$ 143,183$
Total operating revenues 1,307,483 1,307,483 1,450,666 143,183
Operating expenses
Personnel services 140,023 145,879 141,222 4,657
Contractual services 843,440 842,683 812,755 29,928
Supplies 15,379 10,507 9,022 1,485
Maintenance and materials 78,500 60,234 49,577 10,657
Utilities 270,520 267,102 283,005 (15,903)
Equipment - 25,000 - 25,000
Miscellaneous 67,041 67,151 65,857 1,294
Total operating expenses 1,414,903 1,418,556 1,361,438 57,118
Operating income (loss)(107,420) (111,073) 89,228 200,301
Non-operating revenues (expenses)
Gross receipts taxes - - - -
Interest expense - - - -
Interest income - - - -
Miscellaneous income 17,460 17,460 16,442 (1,018)
Total non-operating revenues
(expenses)17,460 17,460 16,442 (1,018)
Income (loss)(89,960) (93,613) 105,670 199,283
Change in net position (89,960)$ (93,613)$ 105,670 199,283$
(Expenses) not budgeted:
Depreciation 58,315
Change in net position per Exhibit D-2 47,355
Net position - beginning 1,251,662
Net position - ending 1,299,017$
For the Year Ended June 30, 2016
Town of Taos
Statement of Revenues, Expenses, and Changes in Net Position
Solid Waste Proprietary Fund
The accompanying notes are an integral part of these financial statements.
127
Statement B-31STATE OF NEW MEXICO
Budget (GAAP Basis) and Actual
Variances
Favorable
Budget Amounts (Unfavorable)
Original Final Actual Final to Actual
Operating revenues
Charges for services 1,220,465$ 1,276,385$ 1,255,657$ (20,728)$
Total operating revenues 1,220,465 1,276,385 1,255,657 (20,728)
Operating expenses
Personnel services 270,307 274,632 270,456 4,176
Contractual services 286,215 332,432 297,091 35,341
Supplies 18,375 17,070 5,543 11,527
Maintenance and materials 105,184 101,393 84,976 16,417
Utilities 7,964 8,087 7,865 222
Miscellaneous 272,929 204,930 79,345 125,585
Total operating expenses 3,265,467 3,243,037 745,275 2,497,762
Operating income (loss)(2,045,002) (1,966,652) 510,382 2,477,034
Non-operating revenues (expenses)
Interest expense (22,771) (27,554) (26,571) 983
Interest income - - 6,971 6,971
Miscellaneous income (expense)1,228,121 1,376,047 2 (1,376,045)
Total non-operating revenues
(expenses)1,205,350 1,348,493 (19,598) (1,368,091)
Income (loss)(839,652) (618,159) 490,784 1,108,943
Change in net position (839,652)$ (618,159)$ 490,784 1,108,943$
Revenues (expenses) not budgeted:
Depreciation 161,263
Change in net position per Exhibit D-2 329,521
Net position - beginning 2,591,686
Net position - ending 2,921,207$
For the Year Ended June 30, 2016
Town of Taos
Statement of Revenues, Expenses, and Changes in Net Position
Taos Regional Landfill Proprietary Fund
The accompanying notes are an integral part of these financial statements.
128
SUPPORTING SCHEDULES
129
Account Bank Deposits Outstanding Reconciled
Bank Name/Account Name Type Balance in Transit Checks Balance
US Bank
Clearing Account Checking 1,413,449$ 290,516$ 1,391,246$ 312,719$
Judicial Bond Fund Municipal Court Checking 684 - 569 115
Utility Construction Fund Checking 39,530 - - 39,530
Water & Sewer System Income Fund Checking 4,316,211 9,207 1,302 4,324,116
Certificate of Deposit - Investment CD 170,500 - - 170,500
Total US Bank 5,940,374 299,723 1,393,117 4,846,980
Centinel Bank
General Fund Checking 5,746,180 4,318 253,969 5,496,529
Water/Wastewater Improvement Fund Checking 736,570 - - 736,570
Payroll Clearing Checking 9 - 9 -
1994 GRT Revenue Bond Acquisition Fund Checking 87,372 - - 87,372
HUD Account - Domestic Violence Shelter Checking 7,295 - 7,294 1
ACH Transfer Account Checking 95,064 - 94,964 100
Total Centinel Bank 6,672,490 4,318 356,236 6,320,572
Bank of Albuquerque- Investments
2004 Taos Regional Landfill Revenue
Bond Reserve
U.S. Treasury
Mutual Fund 62,300 - - 62,300
2008A Taos Regional Landfill Debt
Service
U.S. Treasury
Mutual Fund 100,925 - - 100,925
2008 Gross Receipts Tax Revenue Bond
Reserve
U.S. Treasury
Mutual Fund 170,983 - - 170,983
2010a Phase I Multi Phased Recreation Park U.S. Treasury
Mutual Fund 182,427 - - 182,427
Water Systems Improvement Grant U.S. Treasury
Mutual Fund 1,142,687 - - 1,142,687
WTB Water Systems Improvement Grant U.S. Treasury
Mutual Fund 26,249 - - 26,249
New Cell for SW Landfill Facility U.S. Treasury
Mutual Fund 107,982 - - 107,982
New Cell for SW Landfill Facility U.S. Treasury
Mutual Fund 138,794 - - 138,794
Total Bank of Albuquerque 1,932,347 - - 1,932,347
STATE OF NEW MEXICO
Town of Taos
Schedule of Deposit and Investment Accounts
June 30, 2016
See independent auditors' report.
130
Schedule III
Account Bank Deposits Outstanding Book
Bank Name/Account Name Type Balance in Transit Checks Balance
New Mexico Finance Authority - Investments
2007 NMFA Land Purchase State Treasurer
Debt Service 169$ -$ -$ 169$
2004 Taos Regional Landfill Revenue
Bond Reserve
State Treasurer
Debt Service 1,554 - - 1,554
2008A Taos Regional Landfill Debt Service State Treasurer
Debt Service 2,271 - - 2,271
2010 Phase I Multi-phased Rec. Park State Treasurer
Debt Service 4,289 - - 4,289
1999 Gasoline Tax Acquisition State Treasurer
Debt Service 3,190 - - 3,190
Fire Pumper State Treasurer
Debt Service 119 - - 119
New Cell for SW Landfill Facility State Treasurer
Debt Service 20 - - 20
Total New Mexico Finance Authority 11,612 - - 11,612
Total 14,556,823$304,041$ 1,749,353$ 13,111,511
New Mexico State Treasurer Local Government Investment Pool 4,081,744
Add: petty cash 1,850
Total deposits and investments 17,195,105$
Deposits and investments per financial statements:
Cash and cash equivalents - Exhibit A-1 8,486,781$
Investments - Exhibit A-1 4,192,244
Restricted cash and cash equivalents - Exhibit A-1 1,715,602
Restricted investments - Exhibit A-1 2,726,863
Fiduciary funds cash and investments - Exhibit E-1 73,615
Total deposits and investments 17,195,105$
See independent auditors' report.
131
Schedule IV
Description of Fair Market
Name of Pledged CUSIP Value at Location
Depository Collateral Maturity Number June 30, 2016 of Safekeeper
US Bank
FNMA POOL 890193 N/A LOC 5,500,000$ Federal Home Loan Bank, Dallas, TX
FNMA POOL 890620 N/A LOC 800,000 Federal Home Loan Bank, Dallas, TX
6,300,000
Centinel Bank
CLOVIS SCH DIST 8/1/2022 189414KC8 200,000 Independent Bankers Bank, Dallas TX
LEA COUNTY SCH 7/15/2021 521513AL5 200,000 Independent Bankers Bank, Dallas TX
LOS ALAMOS SD GO 8/1/2019 5422NBL9 400,000 Independent Bankers Bank, Dallas TX
CLOVIS SCH DIST 8/1/2024 189414JA4 250,000 Independent Bankers Bank, Dallas TX
LOVINGTON SCH 10/1/2016 547473DE5 50,000 Independent Bankers Bank, Dallas TX
LAS CRUCES SD GO 8/1/2021 517534PE7 250,000 Independent Bankers Bank, Dallas TX
ESPANOLA SCH 9/1/2025 29662RBA5 150,000 Independent Bankers Bank, Dallas TX
LEA COUNTY SCH 1/15/2017 521513BR1 179,984 Independent Bankers Bank, Dallas TX
RUIDOSO SD GO 8/1/2021 781338HR2 250,000 Independent Bankers Bank, Dallas TX
WEST LAS VEGAS 8/15/2018 953769JW7 50,000 Independent Bankers Bank, Dallas TX
HOBBS SCH DIST 7/15/2021 433866EV8 200,000 Independent Bankers Bank, Dallas TX
FHBL 12/14/2018 3133XSUN6 844,720 Independent Bankers Bank, Dallas TX
WEST LAS VEGAS 8/15/2022 953769KX3 150,000 Independent Bankers Bank, Dallas TX
GALLUP MCKINLEY 7/15/2021 364010RJ9 175,030 Independent Bankers Bank, Dallas TX
3,349,734
Total Pledged Collateral 9,649,734$
June 30, 2016
Town of Taos
Schedule of Collateral Pledged by Depository for Public Funds
STATE OF NEW MEXICO
See independent auditors' report.
132
STATE OF NEW MEXICO Schedule V
Town of Taos
Schedule of Changes in Fiduciary Assets and Liabilities - Agency Funds
For the Year Ended June 30, 2016
Balance Balance
June 30, 2015 Additions Deletions June 30, 2016
Assets
Cash 11,176$ $ 15,785 $ 13,346 13,615$
Investments 60,000 - - 60,000
Total assets 71,176$ 15,785$ 13,346$ 73,615$
Liabilities
Deposits payable 70,793$ 15,785$ 13,346$ 73,232$
Due to other entities 383 - - 383
Total liabilities 71,176$ 15,785$ 13,346$ 73,615$
See independent auditors' report.
133
Agreement
The Town
Participates with
Party Responsible
for Operation Description
Salazar Property and
Sports Facilities
Taos Municipal
Schools Board of
Education
Taos Municipal
School District
Develop, manage and maintain a multi-purpose
athletic facility on the Salazar Property
Public Restroom Facility County of Taos County of Taos Designing, constructing, operating, and
maintaining a public restroom facility
Enhanced 911-Response
System
County of Taos,
Town of Questa,
Village of Taos Ski
Valley
County of Taos Provide an answering point for information
regarding needed emergency services
Taos Regional Landfill
Board
County of Taos,
Village of Questa,
Village of Red River,
Village of Taos Ski
Valley
Town of Taos Establish the Taos Regional Landfill Board
June 30, 2016
STATE OF NEW MEXICO
Town of Taos
Schedule of Joint Powers Agreements
See independent auditors' report.
134
Schedule VI
Period Cost to Town Town Contributions Audit Responsibility
40 Years from 2009, with option to
renew
$2,140,012 for Phase I;
unknown for other phases
None to date Taos Municipal School
District
November 20, 2007 to January 31,
2028
Indeterminate Indeterminate County of Taos
August 05, 2014 until terminated Estimated $340,000 per year $330,950 County of Taos
50 years from November 2, 2000 Dependent on landfill
expenses
None to date Town of Taos
See independent auditors' report.
135
Prepared by: Town of Taos Title: Finance Department Date: June 30, 2016
Agency
Number
Agency
Name Agency Type
RFB#/RFP#
(If
applicable)
Type of
Procurement Vendor Name
Did Vendor
Win
Contract?
$ Amount of
Awarded
Contract
6170 Town of Taos Municipalities BID 15-16-07
Competitive (RFP
or RFB)
Northern Mountain
Constructors, Inc.Winner $15,218,769.14
6170 Town of Taos Municipalities BID 15-16-07
Competitive (RFP
or RFB)RBK Construction Loser $ -
6170 Town of Taos Municipalities BID 15-16-07
Competitive (RFP
or RFB)
Mountain States
Constructors, Inc.Loser $ -
6170 Town of Taos Municipalities BID 15-16-08
Competitive (RFP
or RFB)Vigil's Contracting Services Winner $152,998.33
6170 Town of Taos Municipalities BID 15-16-09
Competitive (RFP
or RFB)Vigil's Contracting Services Loser $ -
6170 Town of Taos Municipalities RFP 15-16-10
Competitive (RFP
or RFB)Souder, Miller & Associates Winner $903,613.00
6170 Town of Taos Municipalities RFP 15-16-10
Competitive (RFP
or RFB)CH2M Loser $ -
6170 Town of Taos Municipalities RFP 15-16-11
Competitive (RFP
or RFB)Stray Hearts Loser $ -
6170 Town of Taos Municipalities RFP 15-16-12
Competitive (RFP
or RFB)Habitat for Humanity Winner
Pending, MFA
Approval
STATE OF NEW MEXICO
Town of Taos
Schedule of Vendor Information for Purchases Exceeding $60,000 (excluding GRT)
For the Year Ended June 30, 2016
See independent auditors' report.
136
Schedule VII
Page 1 of 2
$ Amount
of
Amended
Contract
Physical address of
vendor (City, State)
Did the Vendor
provide
documentation
of eligibility for
in‐state
preference?
Did the Vendor
provide
documentation of
eligibility for
veterans'
preference?
Brief Description of the Scope
of Work
If the
procurement is
attributable to a
Component
Unit, Name of
Component Unit
N/A
Albuquerque, New
Mexico Yes N/A
Taos Regional Airport Runway
12/30, Parallel Taxiway B,
Connecting Taxiway and Holding
Bays Grading etc.
N/A Rye, Colorado No N/A
Taos Regional Airport Runway
12/30, Parallel Taxiway B,
Connecting Taxiway and Holding
Bays Grading etc.
N/A
Albuquerque, New
Mexico Yes N/A
Taos Regional Airport Runway
12/30, Parallel Taxiway B,
Connecting Taxiway and Holding
Bays Grading etc.
N/A
Albuquerque, New
Mexico Yes N/A
Taos Youth & Family Center East
Wall Renovations
N/A
Albuquerque, New
Mexico Yes N/A
Taos Youth & Family Center Roof
Replacement
N/A
Albuquerque, New
Mexico Yes No
Operations, Maintenance &
Management of the Taos Valley
Regional Waste Water Treatment &
Reclamation Facility
N/A
Albuquerque, New
Mexico Yes No
Operations, Maintenance &
Management of the Taos Valley
Regional Waste Water Treatment &
Reclamation Facility
N/A Taos, New Mexico Yes N/A Animal Shelter Care & Services
N/A
Albuquerque, New
Mexico Yes N/A
Disposition of Lots for Affordable
Housing at the Chamisa Verde
Subdivision
See independent auditors' report.
137
Agency
Number
Agency
Name Agency Type
RFB#/RFP#
(If
applicable)
Type of
Procurement Vendor Name
Did Vendor
Win
Contract?
$ Amount of
Awarded
Contract
6170 Town of Taos Municipalities RFP 15-16-15 Competitive (RFP o NCA Architects, LLC Winner $95,000.00
6170 Town of Taos Municipalities RFP 15-16-15 Competitive (RFP o Henry Architects Loser $ -
6170 Town of Taos Municipalities RFP 15-16-15 Competitive (RFP o R2 Architectural Services Loser $ -
6170 Town of Taos Municipalities BID 15-16-16 Competitive (RFP o Nambe Healthcare Services Winner $222,115.00
6170 Town of Taos Municipalities BID 15-16-16 Competitive (RFP o
ABQ Modular & Mobile
Offices LLC Loser $ -
6170 Town of Taos Municipalities BID 15-16-16 Competitive (RFP o Mobile Home Supply Loser $ -
6170 Town of Taos Municipalities BID 15-16-17 Competitive (RFP o
File System Construction,
LLC Winner $778,358.41
6170 Town of Taos Municipalities BID 15-16-20 Competitive (RFP o Phoenix Mechanical Winner $100,000.00
Schedule of Vendor Information for Purchases Exceeding $60,000 (excluding GRT)
For the Year Ended June 30, 2016
STATE OF NEW MEXICO
Town of Taos
See independent auditors' report.
138
Schedule VII
Page 2 of 2
$ Amount
of
Amended
Contract
Physical address of
vendor (City, State)
Did the Vendor
provide
documentation
of eligibility for
in‐state
preference?
Did the Vendor
provide
documentation of
eligibility for
veterans'
preference?
Brief Description of the Scope
of Work
If the
procurement is
attributable to a
Component
Unit, Name of
Component Unit
N/A
Albuquerque, New
Mexico Yes No
Architectural Services for the Taos
Youth & Family Center
Reconstruction Project
N/A
Arroyo Seco, New
Mexico Yes No
Architectural Services for the Taos
Youth & Family Center
Reconstruction Project
N/A
Albuquerque, New
Mexico Yes N/A
Architectural Services for the Taos
Youth & Family Center
Reconstruction Project
N/A Santa Fe, New Mexico Yes N/A Modular Buildings Transportation
N/A
Albuquerque, New
Mexico Yes No Modular Buildings Transportation
N/A El Paso, Texas No No Modular Buildings Transportation
N/A
Albuquerque, New
Mexico No No
Town of Taos Water System
Improvements
N/A Taos, New Mexico No No
Mechanical, Electrical & Plumbing
Services
See independent auditors' report.
139
(This page intentionally left blank.)
140
COMPLIANCE SECTION
141
Understanding Your Needs to
Provide Solutions that
Achieve Results
REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON
COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS
PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
INDEPENDENT AUDITORS’ REPORT
Timothy Keller
New Mexico State Auditor
The United States Office of Management and Budget and
The Town Council
Town of Taos
Taos, New Mexico
We have audited, in accordance with the auditing standards generally accepted in the United States of America and
the standards applicable to the financial audits contained in Government Auditing Standards issued by the
Comptroller General of the United States, the financial statements of the governmental activities, the business-type
activities, each major fund, the aggregate remaining fund information, and the budgetary comparison of the general
fund of the Town of Taos (the Town) as of and for the year ended June 30, 2016, and the related notes to the
financial statements, which collectively comprise the Town’s basic financial statements, and the combining and
individual funds and related budgetary comparisons of the Town presented as supplementary information, and have
issued our report thereon dated November 29, 2016.
Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered the Town’s internal control over
financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for
the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion
on the effectiveness of the Town’s internal control. Accordingly, we do not express an opinion on the effectiveness
of the Town’s internal control.
A deficiency in internal control exists when the design or operation of a control does not allow management or
employees, in the normal course of performing their assigned functions, to prevent, or detect and correct,
misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal
control such that there is reasonable possibility that a material misstatement of the entity’s financial statements will
not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a
combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to
merit attention by those charged with governance.
Our consideration of internal control was for the limited purpose described in the first paragraph of this section and
was not designed to identify all deficiencies in internal control that might be material weaknesses or significant
deficiencies and therefore, material weaknesses or significant deficiencies may exist that were not identified. Given
these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be
material weaknesses. However, material weaknesses may exist that have not been identified. We did identify
certain deficiencies in internal control, described in the accompanying schedule of findings and questioned costs that
we consider to be significant deficiencies as items FS 2015-002 and FS 2016-001.
www.rpcllp.com
142
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Town's financial statements are free from material
misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant
agreements, noncompliance with which could have a direct and material effect on the determination of financial
statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our
audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of
noncompliance or other matters that is required to be reported under Government Auditing Standards.
We noted certain matters that is required to be reported per section 12-6-5 NMSA 1978 that we have described in
the accompanying schedule of Section 12-6-5 NMSA 1978 Findings as items NM 2016-001 and NM 2016-002.
The Town’s Responses to Findings
The Town’s responses to the findings identified in our audit are described in the accompanying schedule of findings
and questioned costs. The Town’s responses were not subjected to the auditing procedures applied in the audit of
the financial statements and, accordingly, we express no opinion on them.
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the
result of that testing, and not to provide an opinion on the effectiveness of the entity’s internal control over
compliance. This report is an integral part of an audit performed in accordance with Government Auditing
Standards in considering the Town’s internal control and compliance. Accordingly, this communication is not
suitable for any other purpose.
RPC CPAs + Consultants, LLP
Albuquerque, NM
November 29, 2016
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FEDERAL FINANCIAL ASSISTANCE
145
Understanding Your Needs to
Provide Solutions that
Achieve Results
REPORT ON COMPLIANCE FOR THE MAJOR FEDERAL PROGRAM AND ON INTERNAL
CONTROL OVER COMPLIANCE REQUIRED BY THE UNIFORM GUIDANCE
INDEPENDENT AUDITORS’ REPORT
Timothy Keller
New Mexico State Auditor
The United States Office of Management and Budget and
The Town Council
Town of Taos
Taos, New Mexico
Report on Compliance for the Major Federal Program
We have audited the Town of Taos’ (the Town) compliance with the types of compliance requirements described in
the OMB Compliance Supplement that could have a direct and material effect the Town’s major federal program for
the year ended June 30, 2016. The Town’s major federal program is identified in the summary of auditors’ results
section of the accompanying schedule of findings and questioned costs.
Management’s Responsibility
Management is responsible for compliance with the requirements of laws, regulations, contracts and grants
applicable to its federal programs.
Auditors’ Responsibility
Our responsibility is to express an opinion on compliance of the Town’s major federal program based on our audit
of the types of compliance requirements referred to above. We conducted our audit of compliance in accordance
with auditing standards generally accepted in the United States of America; the standards applicable to financial
audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and the
audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements,
Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Those standards and the Uniform
Guidance require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance
with the types of compliance requirements referred to above that could have a direct and material effect on a major
federal program occurred. An audit includes examining, on a test basis, evidence about the Town’s compliance with
those requirements and performing such other procedures as we considered necessary in the circumstances.
We believe that our audit provides a reasonable basis for our opinion on compliance for the major federal program.
However, our audit does not provide a legal determination of the Town’s compliance.
Opinion on the Major Federal Program
In our opinion, the Town complied, in all material respects, with the types of compliance requirements referred to
above that could have a direct and material effect on its major federal program for the year ended June 30, 2016.
www.rpcllp.com
146
Report on Internal Control Over Compliance
Management of the Town is responsible for establishing and maintaining effective internal control over compliance
with the types of compliance requirements referred to above. In planning and performing our audit of compliance,
we considered the Town’s internal control over compliance with the types of requirements that could have a direct
and material effect on the major federal program to determine the auditing procedures that are appropriate in the
circumstances for the purpose of expressing our opinion on compliance for the major federal program and to test and
report on internal control over compliance in accordance with Uniform Guidance, but not for the purpose of
expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an
opinion on the effectiveness of the Town’s internal control over compliance.
A deficiency in internal control over compliance exists when the design or operation of a control over compliance
does not allow management or employees, in the normal course of performing their assigned functions, to prevent,
or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis.
A material weakness in internal control over compliance is a deficiency, or combination of deficiencies, in internal
control over compliance, such that there is a reasonable possibility that material noncompliance with a type of
compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A
significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in
internal control over compliance with a type of compliance requirement of a federal program that is less severe than
a material weakness in internal control over compliance, yet important enough to merit attention by those charged
with governance.
Our consideration of internal control over compliance was for the limited purpose described in the first paragraph of
this section and was not designed to identify all deficiencies in internal control over compliance that might be
material weaknesses or significant deficiencies. We did not identify any deficiencies in internal control over
compliance that we consider to be material weaknesses. However, material weaknesses may exist that have not been
identified.
The purpose of this report on internal control over compliance is solely to describe the scope of our testing of
internal control over compliance and the results of that testing based on the requirements of Uniform Guidance.
Accordingly, this report is not suitable for any other purpose
RPC CPAs + Consultants, LLP
Albuquerque, NM
November 29, 2016
147
Federal Grantor or Pass-Through Grantor/ Program Title
CFDA
Number Federal Grant Number
Department of Public Safety
16.523 16-690-18442
16.588 2016-WF-233
Total U.S. Department of Justice
14.267 NM0038L6B011404
Community Development Block Grant - Youth & Family Center 14.228 15-C-NR-I-03-G-01
Total U.S. Department of Housing & Urban Development
Federal Aviation Administration (FAA) Airport Improvement Grant:
Runway 12/30 Construction - Phase 1 and 2 20.106 *35-0041-032-2014/2015
Memorandum of Agreement Overflight Stipulators 20.106 *3-35-0041-027-2012
Federal Transit - Taos Chile Line Transit Operations 20.500 NM-03-0041-00
Total U.S. Department of Transportation
Community Forestry Assistance Grant - Facilities 10.664
Community Forestry Assistance Grant - Fire Department 10.664 15-521-0410-0107
Total U.S. Department of Agriculture
National Park Service Passed Through Department of Cultural Affairs
Historical Preservation Division
Historic Preservation Fund Grants-In-Aid - Cultural Landscape Report 15.904 35-15-131230.18
Total National Park Service
* Denotes Major Federal Financial Assistance Program
Total Federal Financial Assistance
U.S. Department of Transportation
U.S. Department of Housing & Urban Development Passed Through the
State of New Mexico, Department of Finance & Administration
U.S. Department of Justice Passed Through the State of New Mexico,
Taos County Juvenile Accountability Block Grants
U.S. Department of Agriculture Passed Through Energy Minerals
Natural Resources
STATE OF NEW MEXICO
Town of Taos
Schedule of Expenditures of Federal Awards
For the Year Ended June 30, 2016
Continuum of Care Program - Domestic Violence Shelter for Women
STOP VAWA (Violence Against Women)
See independent auditors' report.
See accompanying notes to the schedule of expenditures of federal awards.
148
Schedule VIII
Page 1 of 2
Federal
Expenditures
Funds Provided to
Subrecipients Noncash Assistance
$ 119,281 $ - $ -
60,449 - -
179,730 - -
139,702 - -
500,000 - -
639,702 - -
4,705,755 - -
13,479 - -
792 - -
4,720,026 - -
7,163 - -
16,353 - -
23,516 - -
48,159 - -
48,159 - -
5,611,133$ -$ -$
See independent auditors' report.
See accompanying notes to the schedule of expenditures of federal awards.
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Schedule VIII
Page 2 of 2
Notes to Schedule of Expenditures of Federal Awards
Basis of Presentation
Loans
The Town did not expend federal awards related to loans or loan guarantees during the year.
10% de minimus Indirect Cost Rate
The Town did not elect to use the allowed 10% indirect cost rate.
Federally Funded Insurance
The Town has no federally funded insurance.
Reconciliation of Schedule of Expenditures of Federal Awards to Financial Statements:
Total federal awards expended per Schedule of Expenditures of Federal Awards 5,611,133$
Total expenditures funded by other sources 15,453,526
Total expenditures of governmental funds 21,064,659$
The accompanying Schedule of Expenditures of Federal Awards (Schedule)includes the federal grant activity of the Town of
Taos and is presented on the modified accrual basis of accounting,which is the same basis as was used to prepare the fund
financial statements.The information in this Schedule is presented in accordance with the requirements of Uniform
Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance).
See independent auditors' report.
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STATE OF NEW MEXICO Schedule IX
Town of Taos Page 1 of 7
Schedule of Findings and Questioned Costs
June 30, 2016
SECTION I – SUMMARY OF AUDITORS’ RESULTS
Financial Statements:
1. Type of auditors’ report issued Unmodified
2. Internal control over financial reporting:
a. Material weaknesses identified? None noted
b. Significant deficiencies identified not considered to be material weaknesses? Yes
c. Noncompliance material to the financial statements noted? None noted
Federal Awards:
1. Type of auditors’ report issued on compliance for the major program Unmodified
2. Internal control over major programs:
a. Material weaknesses identified? None noted
b. Significant deficiencies identified not considered to be material weaknesses? None noted
3. Any audit findings disclosed that are required to be reported in accordance with 2CFR
section 200.516(a)? None Noted
4. Identification of major program:
CFDA
Number Federal Program
20.106 Airport Improvement Grant
5. Dollar threshold used to distinguish between type A and type B programs: $750,000
6. Auditee qualified as a low-risk auditee? Yes
153
STATE OF NEW MEXICO Schedule IX
Town of Taos Page 2 of 7
Schedule of Findings and Questioned Costs
June 30, 2016
SECTION II – PRIOR YEAR AUDIT FINDINGS
FS 2014-001 - Consumable Inventory Controls (Significant Deficiency) - Resolved
FS 2015-001 – Insufficient Controls over Program Income (Finding that does not rise to level of significant deficiency) –
Resolved
FS 2015-002 – Segregation of Duties and Improper Access of IT – Repeated and Modified
FS 2015-003 – Small Purchases (Finding that does not rise to level of significant deficiency) - Resolved
154
STATE OF NEW MEXICO Schedule IX
Town of Taos Page 3 of 7
Schedule of Findings and Questioned Costs
June 30, 2016
SECTION III – FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS
FS 2015-002 Segregation of Duties and Improper Access of IT (Significant Deficiency)—Repeated and Modified
Condition: During our walk-through procedures performed over Information Technology, it was noted that the Town did not
maintain proper segregation of duties regarding control of logical access until after year end. The Town has one employee
approving and modifying logical access levels or rights to In-Code financial system.
Criteria: The COSO (Committee of Sponsoring Organizations of the Treadway Commission), the generally accepted
framework for internal controls, specifies the elements of a strong internal control system which includes IT controls. These
elements include the specific control activities themselves which protect the IT system and help prevent, or detect and correct
errors in the system. General IT control activities are essential to ensure efficient, reliable, protected performance of an IT
system.
After year end the Town put in place controls over the logical access. The IT Director is now the only personnel with add and
delete abilities. The Finance Director approves changes from the department and sends the changes needed to the IT Director
who makes the changes. These changes did not take full effect until after June 30, 2016.
Effect: There is an increased risk of inappropriate access or changes to the In-Code financial system being made without
approval.
Cause: The Town did not fully implement all changes to user access levels until after year end.
Auditors’ Recommendations: We recommend that the Town monitor their newly implemented process to ensure it is functioning
appropriately. The IT Department should not modify access rights for the In-Code financial system without written instruction
and approval from the Finance Director.
Agency’s Response: Management agrees with the auditors’ recommendations. IT and Finance developed a process in which the
Department Head submits a request to the Finance Director on the level of access needed for the employee. The Finance
Director then approves and submits that to the IT Director and he makes the necessary changes. The process has been in place
since June 2016 and is working effectively. The process was implemented in a series of steps to insure that when administrative
rights were removed other programming steps were necessary to give the appropriate access right needed to certain employees.
We will continue to monitor our process throughout the current fiscal year.
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STATE OF NEW MEXICO Schedule IX
Town of Taos Page 4 of 7
Schedule of Findings and Questioned Costs
June 30, 2016
SECTION III – FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS (CONTINUED)
FS 2016-001 Utility Billing Receivable and Revenue Accruals (Significant Deficiency)
Condition: During our testwork over the utilities billing process we could not reconcile the balance per general ledger to the
utilities billing system. To reconcile, adjustments in the amount of $824,337 were made. The following adjustments were made
to reconcile:
An adjustment in the amount of $444,707 was proposed to reconcile the general ledger to the utilities billing system.
This difference is due to a timing difference in the date the Town entered the data and the date the bills are generated
for customer billing.
An adjustment in the amount of $379,630 was proposed due to the unbilled utilities not be accrued by the Town, as
needed, for billing after year-end where service occurred prior to year-end.
Criteria: In order to present the Town’s financial statements in accordance with GAAP, accruals should be made for all utility
services provided through June 30, 2016.
Effect: The Town’s utility billing receivables and revenue were misstated at year end prior to the proposed audit adjusting entry.
Cause: The Town did not record all utility billing receivables and revenue through June 30, 2016.
Auditors’ Recommendations: We recommend that the Town record all utility billing revenue and receivables through year end
and make all adjustments for unbilled utilities as part of their financial close process.
Agency’s Response: Management agrees with the auditors’ recommendations. The Finance Department in closing the fiscal
year books all other receivables and payables to the best of its ability in communicating with all 17 Department’s. In the past we
had would provide the utility billing receivables and reports for the unbilled amounts to the Auditors for adjustment, but this
year due to a timing difference we provided the data but didn’t specify the amounts. To prepare for the next audit, the Customer
Service Manager, the Accounting Manager and the Finance Director will collectively work together to provide those figures to
the auditors for all utility billing receivables and accruals through the end of the fiscal year.
156
STATE OF NEW MEXICO Schedule IX
Town of Taos Page 5 of 7
Schedule of Findings and Questioned Costs
June 30, 2016
SECTION IV – NEW MEXICO STATE AUDIT RULE SECTION 12-6-5 NMSA 1978 FINDINGS
NM 2016-001 Sole Source Procurement (Finding that does not rise to level of significant deficiency)
Condition: During our testwork of sole source procurements we noted the following problems:
In one out of ten sole source procurement tested, there was an incomplete sole source form on the website, as page two
of the three page document was missing.
In one out of ten sole source procurement tested, the CPO did not sign the sole source request and determination form.
In one out of ten sole source procurement tested, total procurement was over $30,000 after change order occurred, the
procurement did not go out for competitive procurement and there was no Town Council approval for the amendment
made, per Town policy.
Criteria: According to Town written “Town of Taos Purchasing Policy, Resolution 15-24, Approval of Small Purchases”,
Section 10.A.2 states “…$10,000.01 to $30,000: three (3) written quotations on company letterhead based on the description of
the scope of work provided by the Town. If fewer than three responsible quotes are obtainable, a purchase may be made at the
best obtainable price and in the best interest of the Town and a memo shall be written to the Procurement Office describing the
steps taken to determine the availability of appropriate vendors and relevant prices. Also, Section 12, Approval of Change Order
and/or Amendments, states “Any change order or amendment greater than $30,000 will require the specific approval of the
Town Council.”
Effect: Inadequate controls over maintenance of procurement records increases the risk of procurements being made not in
accordance with Town policy. Not procuring sole source items according to policy could lead to an inefficient use of Town
resources.
Cause: The Town did not maintain complete files for their sole source procurements. The Town also did not follow policy in
relation to the procurement noted above over $30,000.
Auditors’ Recommendations: We recommend the Town follow their sole source procurement requirements and maintain all
appropriate documentation.
Agency’s Response: Management agrees with the auditors’ recommendations. The Chief Procurement Officer will follow-up
with the IT Department that all postings to the website are correct. The Procurement office staff will follow the Town’s sole
source procurement requirements and train Town Department’s on the process and requirements by February 2017.
157
STATE OF NEW MEXICO Schedule IX
Town of Taos Page 6 of 7
Schedule of Findings and Questioned Costs
June 30, 2016
SECTION IV – NEW MEXICO STATE AUDIT RULE SECTION 12-6-5 NMSA 1978 FINDINGS (CONTINUED)
NM 2016-002 Segregation of Duties over Landfill Adjustments and Billing Process (Finding that does not rise to level of
significant deficiency)
Condition: During our testwork of the landfill billing process we identified one individual has the ability to make adjustments to
customer accounts and bill those accounts without a review from another individual.
Criteria: Proper internal controls require segregation of the customer adjustments and billing processes, or mitigating controls
ensuring review of the processes before customers are billed.
Effect: There is an increased risk that customer accounts could be improperly adjusted or billed.
Cause: The Town has not considered it necessary to segregate or otherwise monitor adjustments made during the customer
billing process prior to bills being issued.
Auditors’ Recommendations: We recommend that the Town ensure all adjustments are reviewed prior to posting.
Agency Response: Management agrees with the auditors’ recommendations. The Customer Service Manager has currently
started and will continue to sign off on any adjustments made by any another individual within the Utility Billing Division.
158
STATE OF NEW MEXICO Schedule IX
Town of Taos Page 7 of 7
Schedule of Findings and Questioned Costs
June 30, 2016
SECTION V – FEDERAL AWARD FINDINGS
None noted
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STATE OF NEW MEXICO
Town of Taos
Other Disclosures
June 30, 2016
Exit Conference
An exit conference was held on November 29, 2016. In attendance were the following:
Representing the Town of Taos:
Daniel Barrone Mayor
Rick Bellis Town Manager
Marietta Fambro Finance Director
Nathaniel Evans Audit Chair
Representing RPC CPAs + Consultants, LLP:
Ray Roberts, CPA Managing Partner
Danny Martinez, CPA, CGFM, CGMA Audit Manager
Auditor Prepared Financial Statements
RPC CPAs + Consultants, LLP prepared the GAAP-basis financial statements and footnotes of the Town of Taos from the
original books and records provided to them by the management of the Town. The responsibility for the financial
statements remains with the Town.
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