HomeMy WebLinkAbout2023 Audit ReportTOWN OF TAOS
FINANCIAL STATEMENTS
FOR THE YEAR ENDED
JUNE 30, 203
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I NTRODUCTORY SECTION
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TOWN OF TAOS
June 30, 2023
Table of Contents
INTRODUCTORY SECTION Exhibit Page
Table of Contents 4-5
Official Roster 6
FINANCIAL SECTION
Independent Auditors' Report 8-10
Management's Discussion and Analysis 12-20
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 26-27
Reconciliation of the Balance Sheet to the Statement of Net Position 29
Statement of Revenues, Expenditures, and Changes in Fund
Balances - Governmental Funds B-2 30-31
Reconciliation of the Statement of Revenues, Expenditures, and Changes in
Fund Balances of Governmental Funds to the Statement of Activities 33
Statement of Revenues, Expenditures, and Changes in Fund Balance -
Budget (GAAP Budgetary Basis) and Actual:
General Fund C-1 35
Statement of Net Position - Proprietary Funds D-1 36-39
Statement of Revenues, Expenses and Changes in Net Position - Proprietary Funds D-2 40-41
Statement of Cash Flows - Proprietary Funds D-3 43
Statement of Fiduciary Net Position - Custodial Funds E-1 44
Statement of Changes in Fiduciary Net Position - Custodial Funds E-2 45
NOTES TO FINANCIAL STATEMENTS 46-86
Statement/
Schedule Page
REQUIRED SUPPLEMENTARY INFORMATION
Schedule of Proportionate Share of the Net Pension Liability A-1 88-93
Schedule of the Town's Contributions - Public Employees Retirement Association Plan A-2 94-99
Notes to Required Supplementary Information 100
Schedule of Proportionate Share of the Net OPEB Liability B-1 102-103
Schedule of the Town's Contributions - Retiree Health Care OPEB Plan B-2 104
SUPPLEMENTARY INFORMATION
Nonmajor Fund Descriptions 108-109
Combining and Individual Fund Statements and Schedules:
Combining Balance Sheet - Nonmajor Governmental Funds A-1 110-115
Combining Statement of Revenues, Expenditures, and Changes in
Fund Balances - Nonmajor Governmental Funds A-2 116-121
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TOWN OF TAOS
June 30, 2023
Table of Contents
Statement/
Schedule Page
SUPPORTING SCHEDULES
Schedule of Deposit and Investment Accounts I 124-125
Schedule of Collateral Pledged by Depository For Public Funds II 126
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 128-129
FEDERAL FINANCIAL ASSISTANCE
Report on Compliance for Each Major Federal Program and on Internal Control
Over Compliance Required by the Uniform Guidance 132-134
Schedule of Expenditures of Federal Awards III 136-137
Schedule of Findings and Questioned Costs IV 138-139
Corrective Action Plan 140
OTHER DISCLOSURES 141
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TOWN OF TAOS
Official Roster
June 30, 2023
Town Council
Name Title
Pascualito Maestas Mayor
Nathaniel Evans Town Councilor
Darien D. Fernandez Town Councilor
Marietta Fambro Town Councilor
Corilia Ortega Town Councilor
Administration
Andrew Gonzales
Lupe Martinez
Francella Garcia
Richard Chavez
Christopher Stachura
Town Manager
Finance Director
Town Clerk
Municipal Judge
Town Attorney
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F INANCIAL SECTION
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CORDOVA CPAs LLC
CERTIFIED PUBLIC ACCOUNTANTS | BUSINESS ADVISORS cordovacpas.com
INDEPENDENT AUDITORS’ REPORT
Joseph M. Maestas, P.E.
New Mexico State Auditor
U.S. Office of Management and Budget
Town Council
Town of Taos
Taos, New Mexico
Report on the Audit of the Financial Statements
Opinions
We have audited the accompanying financial statements of the governmental activities, business-type
activities, each major fund, the aggregate remaining fund information, and the budgetary comparison of the
General Fund of Town of Taos (the Town), as of and for the year ended June 30, 2023, and the related notes to
the financial statements which collectively comprise the Town’s basic financial statements as listed in the
table of contents.
In our opinion, the financial statements referred to above present fairly, in all material respects, the
respective financial position of the governmental activities, business-type activities, each major fund, the
aggregate remaining fund information, and the budgetary comparison of the General Fund of Town of Taos,
as of June 30, 2023, and the respective changes in financial position and where applicable, cash flows thereof,
for the year then ended in accordance with accounting principles generally accepted in the United States of
America.
Basis for Opinions
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. Our responsibilities under those standards are further
described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We
are required to be independent of the Town of Taos and to meet our other ethical responsibilities, in
accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence
we have obtained is sufficient and appropriate to provide a basis for our audit opinions.
Responsibilities of Management for the Financial Statements
Management is responsible for the preparation and fair presentation of the financial statements in
accordance with accounting principles generally accepted in the United States of America, and for the design,
implementation, and maintenance of internal control relevant to the preparation and fair presentation of
financial statements that are free from material misstatement, whether due to fraud or error.
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In preparing the financial statements, management is required to evaluate whether there are conditions or
events, considered in the aggregate, that raise substantial doubt about the Town of Taos’s ability to continue
as a going concern for twelve months beyond the financial statement date, including any currently known
information that may raise substantial doubt shortly thereafter.
Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free
from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our
opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not
a guarantee that an audit conducted in accordance with generally accepted auditing standards and
Government Auditing Standards will always detect a material misstatement when it exists. The risk of not
detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud
may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
Misstatements are considered material if there is a substantial likelihood that, individually or in the
aggregate, they would influence the judgment made by a reasonable user based on the financial statements.
In performing an audit in accordance with generally accepted auditing standards and Government Auditing
Standards, we:
Exercise professional judgment and maintain professional skepticism throughout the audit.
Identify and assess the risks of material misstatement of the financial statements, whether due to
fraud or error, and design and perform audit procedures responsive to those risks. Such procedures
include examining, on a test basis, evidence regarding the amounts and disclosures in the financial
statements.
Obtain an understanding of internal control relevant to the audit 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 of Taos’s internal control. Accordingly, no such opinion is expressed.
Evaluate the appropriateness of accounting policies used and the reasonableness of significant
accounting estimates made by management, as well as evaluate the overall presentation of the
financial statements.
Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that
raise substantial doubt about the Town of Taos’s ability to continue as a going concern for a
reasonable period of time.
We are required to communicate with those charged with governance regarding, among other matters, the
planned scope and timing of the audit, significant audit findings, and certain internal control-related matters
that we identified during the audit.
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the Management’s
Discussion and Analysis on pages 12 through 20 and Schedules A-1 through B-2 and notes to the Required
Supplementary Information on pages 88 through 104 be presented to supplement the basic financial
statements. Such information is the responsibility of management and, 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,
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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.
Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively
comprise the Town of Taos’s basic financial statements. The combining and individual fund financial
statements, 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, and Supporting Schedules I through II required by 2.2.2 NMAC are presented for purposes of
additional analysis and are not a required part of the basic financial statements. Such information is the
responsibility of management and was derived from and relates directly to the underlying accounting and
other records used to prepare the basic financial statements. The 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 auditing standards generally accepted in the United States of
America. In our opinion, the combining and individual fund financial statements, the Schedule of
Expenditures of Federal Awards and the Supporting Schedules I through II required by 2.2.2 NMAC are fairly
stated, in all material respects, in relation to the basic financial statements as a whole.
Other Information
Management is responsible for the other information included in the annual report. The other information
comprises the introductory section but does not include the basic financial statements and our auditor’s
report thereon. Our opinions on the basic financial statements do not cover the other information, and we do
not express an opinion or any form of assurance thereon.
In connection with our audit of the basic financial statements, our responsibility is to read the other
information and consider whether a material inconsistency exists between the other information and the
basic financial statements, or the other information otherwise appears to be materially misstated. If, based on
the work performed, we conclude that an uncorrected material misstatement of the other information exists,
we are required to describe it in our report.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated December 7, 2023
on our consideration of the Town of Taos’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 solely 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 effectiveness of
the Town of Taos’s 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 Town of Taos’s
internal control over financial reporting and compliance.
Cordova CPAs LLC
Albuquerque, New Mexico
December 7, 2023
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STATE OF NEW MEXICO
Town of Taos
Management’s Discussion and Analysis
June 30, 2023
We are pleased to present the Town of Taos’ financial statements for the fiscal year ended June 30, 2023. 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 $111,614,022 (net position). Of
this amount, $4,247,046 is (unrestricted net position), due to the on‐going implementation of GASB Statement No. 68 and
Statement No. 75. The Town along with other governmental entities throughout the entire state have experienced the
negative effect with these two GASB Statements. Even though ending the year reporting this amount, the Town currently
has available cash balances to meet the government’s ongoing obligations to its citizens and creditors.
The Town’s total net position increased to $12,028,689 during the fiscal year. The majority of this overall increase was due to
an increase in gross receipts taxes versus original projections.
As of June 30, 2023, the Town’s governmental activities reported a combined ending net position balance of $77,065,326 and
business‐type activities reported a combined ending net position balance of $34,548,696. Included in the available cash
balances are approximately $12,934,355 for ongoing capital projects and $7,660,210 for special revenue projects.
As illustrated in the data below, you will note the favorable increase the Town of Taos has continued to experience during the last five
years. According to the financial information, Total Assets increased by 8.5%, the Town’s Net Position increased by 38.52% and the
Operating Income posted in the General Fund increased 11.48%, which amounts to $1,652,796 over prior year. Total Revenues
increased by 19.93% and Total Expenditures increased by 13.22% over the prior year.
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STATE OF NEW MEXICO
Town of Taos
Management’s Discussion and Analysis
June 30, 2023
Overview of the Financial Statements
The Town’s 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.
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 thirty 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, Capital Maintenance & Operating Fund and Airport Construction
Fund, which are considered major funds. Data from the other twenty‐five 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.
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STATE OF NEW MEXICO
Town of Taos
Management’s Discussion and Analysis
June 30, 2023
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 one type of 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 revenue collection of street permits and deposits for recreation events. The basic
fiduciary fund financial statement can be found in Exhibits E‐1 and E‐2 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 44‐104
of this report.
Combining statements. The combining statements referred to earlier in connection with non‐major governmental funds are
presented immediately following the notes to the financial statements. Combining and individual fund statements and schedules can
be found on pages 108‐119 of this report.
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STATE OF NEW MEXICO
Town of Taos
Management’s Discussion and Analysis
June 30, 2023
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 $111,614,022 at the close of the
current fiscal year. An increase of approximately 12.08% over the prior year.
The significant portion of the Town of Taos’ net position represents the Town’s net investment of $85,230,005 in capital assets (e.g.,
land improvements, buildings, infrastructure and machinery & equipment), less any related outstanding debt used to acquire those
assets. The Town of Taos uses these capital assets to provide services to its citizens, so these assets are not available for future
spending. Although the Town of Taos’ investment in its capital assets is reported net of related debt, it should be noted that the
resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to
liquidate these liabilities.
Governmental Business‐Type
Activities Activities Total
Assets
Current and other assets 30,640,850$ 12,463,216$ 43,104,066$
Restricted cash, cash equivalents & investments ‐ 1,786,857 1,786,857
Restricted investments ‐ 75,400 75,400
Bond issuance costs and discount ‐ ‐ ‐
Capital assets, net of accumulated 63,653,096 28,585,749 92,238,845
depreciation
Total assets 94,293,946 41,048,965 135,342,911
Deferred Outflows of Resources
Deferred Outflows ‐ pension 2,907,340 324,673 3,232,013
Defered Outflows ‐ OPEB 1,074,155 159,434 1,233,589
Total deferred outflows of resources 3,981,495 484,107 4,465,602
Total assets and deferred outflows of resources 98,275,441$ 41,533,072$ 139,808,513$
Liabilities `
Current Liabilities 1,529,840$ 1,411,911$ 2,941,751$
Non ‐current liabilities 16,457,122 5,162,652 21,619,774
Total liabilities 17,986,962 6,574,563 24,561,525
Deferred Inflows of Resources
Defered Inflows ‐ pension 538,814 55,907 594,721
Deferred Inflows ‐ OPED 2,684,339 353,906 3,038,245
Total deferred inflows of resources 3,223,153 409,813 3,632,966
Net Position
Net investment in capital assets 61,637,839 23,592,166 85,230,005
Restricted 20,615,557 1,521,414 22,136,971
Unrestricted (5,188,070) 9,435,116 4,247,046
Total net position 77,065,326$ 34,548,696$ 111,614,022$
Total Liabilities and Net Position 98,275,441$ 41,533,072$ 139,808,513$
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STATE OF NEW MEXICO
Town of Taos
Management’s Discussion and Analysis
June 30, 2023
A portion of the Town of Taos’ governmental restricted net position of $20,615,557 (26.75%) represents resources that are subject to
restrictions related to covenants arising from the Town’s long‐term debt issuance, special revenue projects and capital projects. The
remaining balance of unrestricted net position, ($5,188,070) continues as a negative due to the implementation of GASB Statement 68
and Statement 75 reported in the financials. In the previous financial year, this amount was ($5,060,031). Taking that negative
amount into consideration, the Town has sufficient resources to meet the government’s ongoing obligations to citizens and creditors.
At the end of the current financial period, the Town of Taos reports positive fund 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 to $12,028,689 during the fiscal year. This increase is primarily the result of Gross Receipts Taxes
and Capital Grants as noted below in the Governmental Activities.
Governmental Business‐type
Revenues Activities Activities Total
Program revenues:
Charges for service 1,853,620$ 6,225,838$ 8,079,458$
Operating grants and contributions 2,416,989 ‐ 2,416,989
Capital grants and contributions 5,489,310 3,079,937 8,569,247
General revenues:‐
Property taxes, levied for general purposes 1,288,031 ‐ 1,288,031
Cannabis excise tax 162,539 ‐ 162,539
Gross receipts taxes 15,271,638 672,576 15,944,214
Gasoline, franchise and motor vehicle 829,090 ‐ 829,090
Lodger's Taxes 1,633,345 ‐ 1,633,345
Interest income (loss) 195,816 70,072 265,888
Miscellaneous income 163,769 405 164,174
Transfer to other entity 17,301 (17,301) ‐
Loss on disposal of capital assets (108,900) ‐ (108,900)
Total Revenues 29,212,548 10,031,527 39,244,075
Program expenses:
General government 10,581,131$ ‐$ 10,581,131$
Public safety 4,735,050 ‐ 4,735,050
Public works 1,302,836 ‐ 1,302,836
Culture and recreation 4,217,422 ‐ 4,217,422
Health and welfare ‐ ‐ ‐
Interest 163,461 ‐ 163,461
Joint water and sewer ‐ 5,107,001 5,107,001
Solid waste ‐ 37,440 37,440
Taos Regional Landfill ‐ 1,071,045 1,071,045
Total Expenses 20,999,900 6,215,486 27,215,386
Change in net position 8,212,648 3,816,041 12,028,689
Net Position, beginning 68,852,678 30,732,655 99,585,333
Net Position, ending 77,065,326$ 34,548,696$ 111,614,022$
Statement of Net Positon
For the Year Ended June 30, 2023
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STATE OF NEW MEXICO
Town of Taos
Management’s Discussion and Analysis
June 30, 2023
Governmental Activities. Governmental Activities increased the Town of Taos’ net position to $8,212,648 primarily as the result of an
increase in Gross Receipts Tax and Capital Grants. Whereas, Business‐type Activities increased to $3,816,041 for a combined total of
$12,028,689 net position at fiscal year‐end. It is worth noting, decreases in general government expenditures added to the overall
net position of the Town during the year.
The Town is pleased to report that tax revenues account for 65.67% of governmental revenues, or $19,184,643. Tax revenues are
made up of property, gross receipts, lodger’s tax, gasoline and motor vehicle as well as other taxes. Tax revenues increased by
$1,705,118 from the prior financial period. Respectively, $1,503,110 in gross receipts taxes, $148,936 in cannabis excise tax and
$90,567 in property taxes due to increased assessed property valuations within the town limits as referenced below:
The General Fund received the majority of the Town’s program revenue, accounting for $10,581,131 or 36.22% of total governmental
revenues. The primary recipients of these revenues are general government, public safety, public works and, culture and recreation.
The Town’s direct charges to users of governmental services made up $1,853,620 or 6.35% of total governmental revenues. These
charges are for fees, fines and forfeitures as well as licenses and permits. During the financial period, the Town increased the fees
assessed by the Planning & Zoning Department for land use development. Overall charges for services increased by $606,330 from
prior year due to the fact that major facilities that generate those revenues were opened to the public.
Business‐type Activities. As referenced earlier, Business‐type Activities increased the Town’s net position by $1,705,118 as compared
to the prior fiscal year, primarily as the result of the increase in charges for services and capital grants. 17
STATE OF NEW MEXICO
Town of Taos
Management’s Discussion and Analysis
June 30, 2023
The Town’s direct charges to users of business‐type services made up $6,225,838 or 62.06% of total business‐type revenues. These
charges are for water and sewer services, water and sewer connection fees and landfill tipping fees. These direct charges for service
increased by $317,093 from the prior fiscal year due to an increase in new homeowners and second homeowners relocating to the
Town of Taos.
FINANCIAL ANALYSIS OF THE TOWN OF TAOS 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 $29,212,548 in the financial period ending June 30, 2023, which
represents an increase of $3,872,261 from the financial report ending June 30, 2022. This is largely due to the increase in gross
receipts taxes and the town’s distribution of cannabis excise tax. Expenditures for governmental functions, totaling $20,999,900 was
an increase of approximately $2,963,157 from the fiscal year ended June 30, 2022. This is due mainly to the reopening of all
governmental functions. In the financial period ending June 30, 2023, revenues for governmental functions exceeded expenditures by
approximately $8,212,648.
The General Fund is the general operating fund of the Town of Taos. It is from here that the Town pays for public safety and other
governmental services it provides to its citizens. At the end of the current financial period, unassigned fund balance of the General
Fund was $5,142,175 along with a minimum fund balance of $3,922,369.
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 $9,435,116. The total net position for the
enterprise funds increased $1,305,301 as compared to the prior fiscal year. This performance was reflective of an increase in charges
for services and a decrease in overall operating expenses. The Town continues to build up the asset management fund to a level with
the intent in meeting the required replacement of the water and sewer system for years to come.
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 financial period ending June 30, 2023.
General Fund Budgetary Highlights
Town budgets reflect the same pattern as seen in the revenue and expenditures of the Town within the General Fund. 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. The Town defines its priorities through this process.
Overall, the General Fund’s performance resulted in revenues over expenditures in the financial period ending June 30, 2023 of
$4,404,458 an increase of $599,646 over the comparable figure from the prior year of $3,804,812. The Town’s overall financial
position improved as stated prior under the Financial Highlights. During the year, there were several vacancies within various
departments that contributed to the decrease in expenditures over those originally budgeted. In a concerted effort to reduce the
Town’s vacancy rate, we have created, finalized and implemented a multi‐year comprehensive Pay & Classification Plan which
received unanimous and full support of the governing body.
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STATE OF NEW MEXICO
Town of Taos
Management’s Discussion and Analysis
June 30, 2023
As compared to the prior year, the General Fund revenue increased by 11.48% or approximately $1,652,796. Notable increases were
in Gross Receipts Taxes. The prior year reflected $11,624,599 versus the current financial period reflecting $12,918,772. Including in
Misc. Revenue is the investment income, which earned a favorable $175,920.
The following table examines the summary budget performance of the General Fund for the financial period ending June 30, 2023.
Detailed budget performance is examined through the Statement of Revenues, Expenditures, and Changes in Fund Balance for the
General Fund found in Exhibit C‐1. The Town’s final budget differs from the original budget due to amendments made during the
fiscal year and the increase in expenditures. Actual General Fund expenditures were $2,138,108 less than budgeted. This year, major
adjustments were made at mid‐year and end of year for several one‐time capital, maintenance and operational requests over several
departments within the Town to utilize the favorable variance savings.
Budget Amounts
Original Final
Expenditures:
General government 4,876,873$ 5,187,378 4,320,216$ 867,162$
Public safety 4,037,318 4,076,021 3,743,645 332,376
Public works 1,968,862 2,022,393 1,632,636 389,757
Culture and recreation 2,494,956 2,497,220 1,948,907 548,313
Capital outlay ‐ 500 ‐ 500
Total Expenditures 13,378,009$ 13,783,512$ 11,645,404$ 2,138,108$
Actual
(GAAP Basis)
Favorable
(Unfavorable)
Variance
Capital Assets and Debt Administration
Capital Assets. The Town of Taos’ capital assets for its governmental and business‐type activities as of June 30, 2023 amount to
$89,888,139 (net of accumulated depreciation). Capital assets include land, land improvements, buildings and improvements,
furniture, fixtures and equipment as well as infrastructure. The Town’s capital assets for the current fiscal year increased $6,157,711
for governmental activities and increased $3,894,398 for business‐type activities (net of accumulated depreciation).
The additions to capital assets during the year were mainly classified as either construction or projects in progress, however there was
also a substantial increase in purchasing of equipment/vehicles. We continue to have many active engineering contracts for several
capital projects that are reflected on the significant commitment list included in the financial statements found under Note 16. The
deletion noted was the land and building associated with the Detox Center. The additions to capital assets were as follows:
$2,293,610 for the construction of Rio Pueblo Well; $2,627,300 for reconstruction of Taxiway A; $257,157 for the purchase of 19
STATE OF NEW MEXICO
Town of Taos
Management’s Discussion and Analysis
June 30, 2023
law enforcement vehicles were additions to Governmental Activities, Equipment and Machinery along with the purchase of a
John Deere 624‐P and John Deere 410‐L Loader and capital improvements made to the Town Hall Parking Lot.
Governmental Business‐type
Activities Activities Total
Land 6,506,388$ 262,422$ 6,768,810$
Constuction in progress 8,934,932 7,366,271 16,301,203
Land improvements 8,708,909 104,895 8,813,804
Buildings and improvements 37,546,940 6,776,679 44,323,619
Machinery and Equipment 20,921,419 10,223,892 31,145,311
Infrastructure 87,345,085 39,766,796 127,111,881
Total capital assets 169,963,673 64,500,955 234,464,628
Less: accumulated depreciation (106,799,026) (37,777,463) (144,576,489)
Total property, plant and
equipment, net of accumulated
depreciation 63,164,647$ 26,723,492$ 89,888,139$
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.
Refer to Note 7 in the accompanying Notes to the Financial Statements for further information regarding capital assets.
Debt Administration. At the end of the current financial period, the Town reported long‐term obligations outstanding in the amount
of $6,246,806. The Town’s outstanding debt decreased by $1,029,589 from prior year primarily due to the payoff of an RUS loan.
Upon review of the compensated absences, Governmental Activities increased slightly by $117,872 from prior year while Business‐
type Activities decreased $8,690 from prior year.
Governmental Business‐type
Activities Activities Total
Revenue Bonds 1,515,000$ 1,031,600$ 2,546,600$
NMFA amd RUS Loans ‐ 2,099,726 2,099,726
Compensated absences 872,688 100,913 973,601
Landfill Closure Liability ‐ 626,879 626,879
Total long‐term liabilities 2,387,688$ 3,859,118$ 6,246,806$
Based on the analysis completed by the Town’s financial advisor, the Town will comprehensively evaluate its bonding capacity for the
immediate needs of infrastructure and capital priorities. The Town has experienced significant costs related to deferred maintenance.
It is desired and directed by the governing body to explore the ability to bond for the construction of a new gymnasium and to address
critical infrastructure needs at the Wastewater Treatment Plant.
Refer to Note 8 in the accompanying Notes to the Financial Statements for further information regarding long‐term debt.
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, 400 Camino de la Placita, Taos, New Mexico, 87571, (575) 751‐2002. 20
B ASIC
FINANCIAL STATEMENTS
21
TOWN OF TAOS
Statement of Net Position
June 30, 2023
Governmental
Activities
Business-type
Activities Total
Assets
Current assets
Cash and cash equivalents 21,149,846$ 9,331,515$ 30,481,361$
Investments 5,415,680 1,598,881 7,014,561
Receivables:
Property taxes 280,893 - 280,893
Taxes receivable 2,875,604 123,953 2,999,557
Due from other governments 747,358 406,794 1,154,152
Customer receivable, net - 891,593 891,593
Inventory 143,601 138,348 281,949
Internal balances 27,868 (27,868) -
Total current assets 30,640,850 12,463,216 43,104,066
Noncurrent assets
Restricted cash and cash equivalents - 1,786,857 1,786,857
Restricted investments - 75,400 75,400
Right of use assets, net 488,449 - 488,449
Capital assets 169,963,673 64,500,955 234,464,628
Less: accumulated depreciation (106,799,026) (37,777,463) (144,576,489)
Total noncurrent assets 63,653,096 28,585,749 92,238,845
Total assets 94,293,946 41,048,965 135,342,911
Deferred outflows of resources
Deferred outflows- pension 2,907,340 324,673 3,232,013
Deferred outflows- OPEB 1,074,155 159,434 1,233,589
Total deferred outflows of resources 3,981,495 484,107 4,465,602
Total assets and deferred outflows of resources 98,275,441$ 41,533,072$ 139,808,513$
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 410,747$ 575,741$ 986,488$
Accrued payroll 177,370 18,252 195,622
Accrued compensated absences 363,554 37,977 401,531
Deposits held in trust for others 5,103 340,843 345,946
Accrued interest 5,303 39,580 44,883
Current portion of leases payable 82,763 - 82,763
Current portion of bonds payable 485,000 399,518 884,518
Total current liabilities 1,529,840 1,411,911 2,941,751
Noncurrent liabilities
Accrued compensated absences 509,132 62,936 572,068
Bond premiums, net of accumulated
amortization of $59,034 11,808 - 11,808
Leases payable 419,994 - 419,994
Bonds payable 1,030,000 967,600 1,997,600
Loans payable - 1,764,208 1,764,208
Landfill closure and post-closure - 626,879 626,879
Net pension liability 12,181,189 1,376,082 13,557,271
Net OPEB liability 2,304,999 364,947 2,669,946
Total noncurrent liabilities 16,457,122 5,162,652 21,619,774
Total liabilities 17,986,962 6,574,563 24,561,525
Deferred inflows of resources
Deferred inflows- pension 538,814 55,907 594,721
Deferred inflows- OPEB 2,684,339 353,906 3,038,245
Total deferred inflows of resources 3,223,153 409,813 3,632,966
Net position
Net investment in capital assets 61,637,839 23,592,166 85,230,005
Restricted for:
Debt service 20,992 - 20,992
Capital projects 12,934,355 - 12,934,355
Special revenue projects 7,660,210 - 7,660,210
Landfill - 1,521,414 1,521,414
Unrestricted (deficit)(5,188,070) 9,435,116 4,247,046
Total net position 77,065,326 34,548,696 111,614,022
Total liabilities, deferred inflows of resources, and
net position 98,275,441$ 41,533,072$ 139,808,513$
The accompanying notes are an integral part of these financial statements.23
TOWN OF TAOS
Statement of Activities
For the Year Ended June 30, 2023
Functions/Programs
Expenses
Charges for
Services
Operating
Grants and
Contributions
Capital Grants
and
Contributions
Governmental Activities:
General government 10,581,131$ 1,845,625$ 1,484,461$ -$
Public safety 4,735,050 -582,223 -
Public works 1,302,836 -320,305 5,489,310
Culture and recreation 4,217,422 7,995 30,000 -
Interest 163,461 ---
Total governmental activities 20,999,900 1,853,620 2,416,989 5,489,310
Business-type Activities:
Water and Sewer 5,107,001 4,389,302 -3,079,937
Solid Waste 37,440 34,653 --
Taos Regional Landfill 1,071,045 1,801,883 --
Total business-type activities 6,215,486 6,225,838 -3,079,937
Total 27,215,386$ 8,079,458$ 2,416,989$ 8,569,247$
General Revenues and transfers:
Taxes:
Gross receipts taxes
Cannabis excise tax
Property taxes, levied for general purposes
Gasoline, franchise and motor vehicle
Lodger's taxes
Investment income
Miscellaneous revenue
TransfersLoss on disposal of capital assets
Total general revenues and transfers
Change in net position
Net position, beginning
Net position, ending
Program Revenues
The accompanying notes are an integral part of these financial statements.24
Exhibit A-2
Governmental
Activities
Business-type
Activities Total
(7,251,045)$ -$ (7,251,045)$
(4,152,827) - (4,152,827)
4,506,779 - 4,506,779
(4,179,427) - (4,179,427)
(163,461) - (163,461)
(11,239,981) - (11,239,981)
- 2,362,238 2,362,238
- (2,787) (2,787)
- 730,838 730,838
- 3,090,289 3,090,289
(11,239,981) 3,090,289 (8,149,692)
15,271,638 672,576 15,944,214
162,539 - 162,539
1,288,031 - 1,288,031
829,090 - 829,090
1,633,345 - 1,633,345
195,816 70,072 265,888
163,769 405 164,174
17,301 (17,301) -
(108,900) - (108,900)
19,452,629 725,752 20,178,381
8,212,648 3,816,041 12,028,689
68,852,678 30,732,655 99,585,333
77,065,326$ 34,548,696$ 111,614,022$
Net (Expense) Revenue and Changes in Net Position
The accompanying notes are an integral part of these financial statements.25
General Fund
Airport
Construction
Assets
Cash and cash equivalents 2,539,442$ 4,295,643$
Investments 4,454,594 -
Receivables:
Property taxes 280,893 -
Taxes receivable 2,326,621 -
Due from other governments 18,130 267,789
Inventory 143,601 -
Due from other funds 27,868 -
Total assets 9,791,149$ 4,563,432$
Liabilities, deferred inflows
of resources, and fund balances
Liabilities
Accounts payable 172,349$ 22,769$
Accrued payroll 169,396 -
Deposits held in trust for others - -
Total liabilities 341,745 22,769
Deferred inflows of resources
Unavailable revenue - property taxes 241,259 -
Total deferred inflows of resources 241,259 -
Fund balances
Nonspendable:
Inventory 143,601 -
Spendable:
Restricted for:
General government - -
Public safety - -
Culture and recreation - -
Transportation and roads - -
Capital improvements - -
Debt service - -
Committed to:
General government - -
Public safety - -
Culture and recreation - -
Transportation and roads - -
Capital improvements - 4,540,663
Minimum fund balance 3,922,369 -
Unassigned 5,142,175 -
Total fund balances 9,208,145 4,540,663
Total liabilities, deferred inflows of
resources, and fund balances 9,791,149$ 4,563,432$
The accompanying notes are an integral part of these financial statements.
June 30, 2023
Governmental Funds
Balance Sheet
TOWN OF TAOS
26
Exhibit B-1
Page 1 of 2
Capital Projects
Other Governmental
Funds Total
3,493,408$ 10,821,353$ 21,149,846$
4,031 957,055 5,415,680
- - 280,893
164,821 384,162 2,875,604
- 461,439 747,358
- - 143,601
- - 27,868
3,662,260$ 12,624,009$ 30,640,850$
-$ 215,629$ 410,747$
- 7,974 177,370
- 5,103 5,103
- 228,706 593,220
- - 241,259
- - 241,259
- - 143,601
- 2,415,867 2,415,867
- 640,425 640,425
- 1,959,714 1,959,714
- 10,523 10,523
- 2,954,159 2,954,159
- 3,661 3,661
- 1,502,803 1,502,803
- 9,828 9,828
- 21,783 21,783
- 1,098,956 1,098,956
3,662,260 1,777,584 9,980,507
- - 3,922,369
- - 5,142,175
3,662,260 12,395,303 29,806,371
3,662,260$ 12,624,009$ 30,640,850$
27
Page Left Intentionally Blank
28
TOWN OF TAOS Exhibit B-1
Reconciliation of the Balance Sheet to the Statement of Net Position Page 2 of 2
Governmental Funds
June 30, 2023
Amounts reported for governmental activities in the Statement of
Net Position are different because:
Fund balances - total governmental funds 29,806,371$
Capital assets used in governmental activities are not financial resources
and, therefore, are not reported in the funds 63,164,647
Right of use assets, net of accumulated amortization, used in governmental activities
are not financial resources and, therefore, are not reported in the funds 488,449
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 241,259
Deferred outflows and inflows of resources related to pensions and OPEB are
applicable to future periods and therefore, are not reported in funds:
Deferred outflows- pension 2,907,340
Deferred outflows- OPEB 1,074,155
Deferred inflows- pension (538,814)
Deferred inflows- OPEB (2,684,339)
Certain liabilities, including bonds payable and related components,
accrued interest, current and long-term portions of accrued compensated
absences, and net penison and OPEB liabilites are not due and payable in the
current period and, therefore, are not reported in the funds:
Bonds payable (1,515,000)
Leases payable (502,757)
Bond premiums (11,808)
Accrued interest (5,303)
Accrued compensated absences (872,686)
Net pension liability (12,181,189)
Net OPEB liability (2,304,999)
Net position of governmental activities 77,065,326$
The accompanying notes are an integral part of these financial statements.29
General Fund
Airport
Construction
Revenues
Taxes:
Property 1,248,096$ -$
Gross receipts taxes 12,918,772 -
Gasoline, franchise, and motor vehicle 753,701 -
Lodger's tax - -
Cannabis excise tax - -
Intergovernmental:
Federal operating grants 13,158 -
Federal capital grants - 5,032,403
State operating grants 95,516 -
State capital grants - 287,967
Charges for services 178,110 -
Licenses and fees 581,410 -
Investment income 175,920 -
Miscellaneous 85,179 -
Total revenues 16,049,862 5,320,370
Expenditures
Current:
General government 4,320,216 32,878
Public safety 3,743,645 -
Public works 1,632,636 -
Culture and recreation 1,948,907 -
Capital outlay 121,704 3,599,263
Debt service:
Principal - -
Interest - -
Total expenditures 11,767,108 3,632,141
Excess (deficiency) of revenues over expenditures 4,282,754 1,688,229
Other financing sources (uses)
Transfers in 6,969,591 -
Transfers (out)(11,266,592) -
Total other financing sources (uses)(4,297,001) -
Net change in fund balance (14,247) 1,688,229
Fund balance - beginning of year 9,222,392 2,852,434
Fund balance - end of year 9,208,145$ 4,540,663$
The accompanying notes are an integral part of these financial statements.
For the Year Ended June 30, 2023
Governmental Funds
Statement of Revenues, Expenditures, and Changes in Fund Balances
TOWN OF TAOS
30
Exhibit B-2
Page 1 of 2
Capital Projects
Other
Governmental
Funds Total
-$-$1,248,096$
1,008,872 1,343,994 15,271,638
-75,389 829,090
-1,633,345 1,633,345
-162,539 162,539
-1,058,156 1,071,314
--5,032,403
-1,250,159 1,345,675
-168,940 456,907
-1,026,539 1,204,649
-67,561 648,971
146 19,750 195,816
-78,590 163,769
1,009,018 6,884,962 29,264,212
-1,533,914 5,887,008
-507,240 4,250,885
8,473 -1,641,109
-2,221,311 4,170,218
187,304 2,847,990 6,756,261
-465,000 465,000
-82,695 82,695
195,777 7,658,150 23,253,176
813,241 (773,188) 6,011,036
2,500,000 5,400,775 14,870,366
(846,186) (2,740,287) (14,853,065)
1,653,814 2,660,488 17,301
2,467,055 1,887,300 6,028,337
1,195,205 10,508,003 23,778,034
3,662,260$ 12,395,303$ 29,806,371$
31
Page Left Intentionally Blank
32
TOWN OF TAOS Exhibit B-2
Amounts reported for governmental activities in the Statement of Activities
are different because:
Net change in fund balances - total governmental funds 6,028,337$
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 outlay additions reported in capital outlay expenditures 6,756,261
Depreciation expense (4,848,807)
Book value of disposed assets (108,900)
Revenues in the statement of activities that do not provide current financial
resources are not reported as revenue in the funds:
Change in deferred inflows related to the property taxes receivable 39,935
Expenses in the Statement of Activities that are not paid from current financial
resources are not reported as expenditures in the funds:
Amortizaton and interest expense on right of use asset (86,289)
Governmental funds report Town pension and OPEB contributions as expenditures. However
in the Statement of Activities, the cost of pension and OPEB benefits earned net of employee
contributions is reported as pension and OPEB (expense) income:
Town pension contributions subsequent to measurement date 715,649
Pension expense (1,415,696)
Town OPEB contributions subsequent to measurement date 116,167
OPEB income 592,018
Expenses in the Statement of Activities that do not require current financial
resources are not reported as expenditures in the funds:
Increase in accrued compensated absences (126,870)
Decrease in accrued interest 1,588
The issuance of long-term debt (e.g. bonds, notes, leases) provides current financial
resources to governmental funds, while the repayment of the principal of long-term
debt consumes the current financial resources of governmental funds. Neither
transaction, however, has any effect on net position. Also, governmental funds
report the effect of premiums and similar items when debt is first issued, whereas
these amounts are deferred and amortized in the Statement of Activities:
Amortization of bond premiums 3,935
Principal payments on leases 80,320
Principal payments on loans 465,000
Change in net position of governmental activities 8,212,648$
in Fund Balances of Governmental Funds to the Statement of Activities
For the Year Ended June 30, 2023
Reconciliation of the Statement of Revenues, Expenditures, and Changes
Governmental Funds
The accompanying notes are an integral part of these financial statements.33
Page Left Intentionally Blank
34
TOWN OF TAOS Exhibit C-1
Statement of Revenues, Expenditures, and Changes in Fund Balance
Budget (GAAP Budgetary Basis) and Actual
General Fund
For the Year Ended June 30, 2023
Variances
Original Final Actual Final to Actual
Revenues
Taxes:
Property 1,134,821$ 1,248,897$ 1,248,096$ (801)$
Gross receipts 10,679,589 12,796,287 12,918,772 122,485
Gasoline, franchise and motor vehicle 672,852 746,944 753,701 6,757
Intergovernmental:
Federal operating grants 3,257 3,257 13,158 9,901
State operating grants 90,000 95,500 95,516 16
Charges for services 192,952 206,548 178,110 (28,438)
Licenses and fees 638,646 725,077 581,410 (143,667)
Investment income 3,722 175,920 175,920 -
Miscellaneous 70,617 107,336 85,179 (22,157)
Total revenues 13,486,456 16,105,766 16,049,862 (55,904)
Expenditures
Current:
General government 4,876,873 5,187,378 4,320,216 867,162
Public safety 4,037,318 4,076,021 3,743,645 332,376
Public works 1,968,862 2,022,393 1,632,636 389,757
Culture and recreation 2,494,956 2,497,220 1,948,907 548,313
Capital outlay - 500 - 500
Total expenditures 13,378,009 13,783,512 11,645,404 2,138,108
Excess (deficiency) of revenues over expenditures 108,447 2,322,254 4,404,458 2,082,204
Other financing sources (uses)
Designated cash (budgeted cash increase)324,560 2,647,223 - (2,647,223)
Transfers in 5,382,318 7,525,898 6,969,591 (556,307)
Transfers (out)(5,815,325) (12,495,375)(11,266,592) 1,228,783
Total other financing sources (uses)(108,447) (2,322,254) (4,297,001) (1,974,747)
Net change in fund balance - - 107,457 107,457
Fund balance - beginning of year - - 9,222,392 9,222,392
Fund balance - end of year -$ -$ 9,329,849$ 9,329,849$
No adjustments to revenues -
Adjustments to expenditures for accounts payable, accrued payroll, and capital outlay 121,704
Fund balance - end of year 9,208,145$
Budgeted Amounts
The accompanying notes are an integral part of these financial statements.35
Water and Sewer Solid Waste
Assets
Current assets
Cash and cash equivalents 5,440,095$ 641,915$
Investments 1,349,781 249,100
Taxes receivable 123,953 -
Due from other governments 406,794 -
Customer receivables, net 707,887 33,733
Inventory 138,348 -
Total current assets 8,166,858 924,748
Noncurrent assets
Restricted cash and cash equivalents 340,843 -
Restricted investments - -
Capital assets 55,915,382 1,067,079
Less: accumulated depreciation (32,821,974) (891,266)
Total noncurrent assets 23,434,251 175,813
Total assets 31,601,109 1,100,561
Deferred outflows of resources
Deferred outflows- pension 226,620 44,033
Deferred outflows- OPEB 97,452 24,234
Total deferred outflows of resources 324,072 68,267
Total assets and deferred outflows of resources 31,925,181$ 1,168,828$
June 30, 2023
Proprietary Funds
Statement of Net Position
TOWN OF TAOS
The accompanying notes are an integral part of these financial statements.36
Exhibit D-1
Page 1 of 2
Taos Regional
Landfill Total
3,249,505$ 9,331,515$
- 1,598,881
- 123,953
- 406,794
149,973 891,593
- 138,348
3,399,478 12,491,084
1,446,014 1,786,857
75,400 75,400
7,518,494 64,500,955
(4,064,223) (37,777,463)
4,975,685 28,585,749
8,375,163 41,076,833
54,020 324,673
37,748 159,434
91,768 484,107
8,466,931$ 41,560,940$
The accompanying notes are an integral part of these financial statements.37
Water and Sewer Solid Waste
Liabilities
Current liabilities
Accounts payable 297,035$ 13,367$
Accrued payroll 14,519 -
Accrued compensated absences 32,632 -
Due to other funds 18,958 -
Deposits held in trust for others 340,843 -
Accrued interest 38,868 -
Current maturity of bonds and loans payable 211,796 -
Total current liabilities 954,651 13,367
Noncurrent liabilities
Accrued compensated absences 52,903 -
Bonds payable 967,600 -
Loans payable 1,572,213 -
Landfill closure and post-closure costs - -
Net pension liability 974,385 139,041
Net OPEB liability 191,616 90,799
Total noncurrent liabilities 3,758,717 229,840
Total liabilities 4,713,368 243,207
Deferred inflows of resources
Deferred inflows- pension - 34,420
Deferred inflows- OPEB 211,988 50,391
Total deferred inflows of resources 211,988 84,811
Net position
Net investment in capital assets 20,341,799 175,813
Restricted for:
Landfill - -
Unrestricted 6,658,026 664,997
Total net position 26,999,825 840,810
Total liabilities and net position 31,925,181$ 1,168,828$
June 30, 2023
Proprietary Funds
Statement of Net Position
TOWN OF TAOS
The accompanying notes are an integral part of these financial statements.38
Exhibit D-1
Page 2 of 2
Taos Regional
Landfill Total
265,339$ 575,741$
3,733 18,252
5,345 37,977
8,910 27,868
- 340,843
712 39,580
187,722 399,518
471,761 1,439,779
10,033 62,936
- 967,600
191,995 1,764,208
626,879 626,879
262,656 1,376,082
82,532 364,947
1,174,095 5,162,652
1,645,856 6,602,431
21,487 55,907
91,527 353,906
113,014 409,813
3,074,554 23,592,166
1,521,414 1,521,414
2,112,093 9,435,116
6,708,061 34,548,696
8,466,931$ 41,560,940$
The accompanying notes are an integral part of these financial statements.39
Water and Sewer Solid Waste
Operating revenues
Charges for services 4,389,302$ 34,653$
Total operating revenues 4,389,302 34,653
Operating expenses
Depreciation 1,724,083 27,195
Personnel services 860,097 -
Contractual services 1,199,492 -
Supplies and purchases 41,776 -
Maintenance and materials 48,644 -
Utilities 512,537 -
Non-capital equipment 172,306 10,245
Other costs 476,671 -
Total operating expenses 5,035,606 37,440
Operating income (loss)(646,304) (2,787)
Non-operating revenues (expenses)
Gross receipts taxes 672,576 -
Interest expense (71,395) -
Investment income 63,399 -
Miscellaneous income 405 -
Total non-operating revenues (expenses)664,985 -
Income (loss) before contributions and transfers 18,681 (2,787)
Capital grants 3,079,937 -
Transfers in 4,601,237 -
Transfers (out)(4,618,538) -
Change in net position 3,081,317 (2,787)
Total net position, beginning of year 23,918,508 843,597
Total net position, end of year 26,999,825$ 840,810$
For the Year Ended June 30, 2023
Proprietary Funds
Statement of Revenues, Expenses, and Changes in Net Position
TOWN OF TAOS
The accompanying notes are an integral part of these financial statements.40
Exhibit D-2
Taos Regional
Landfill Total
1,801,883$ 6,225,838$
1,801,883 6,225,838
344,693 2,095,971
288,124 1,148,221
146,074 1,345,566
838 42,614
139,348 187,992
6,016 518,553
1,826 184,377
136,426 613,097
1,063,345 6,136,391
738,538 89,447
-672,576
(7,700)(79,095)
6,673 70,072
-405
(1,027)663,958
737,511 753,405
-3,079,937
2,108,200 6,709,437
(2,108,200) (6,726,738)
737,511 3,816,041
5,970,550 30,732,655
6,708,061$ 34,548,696$
The accompanying notes are an integral part of these financial statements.41
Page Left Intentionally Blank
42
Exhibit D-3
Water and
Sewer Solid Waste
Taos
Regional
Landfill Total
Cash flows from operating activities:
Cash received from user charges 4,679,324$ 920$ 1,903,963$ 6,584,207$
Cash payments to employees for services (819,197) - (325,833) (1,145,030)
Cash payments to suppliers for goods and services (2,918,137) (10,399) (183,399) (3,111,935)
Net cash provided (used) by operating activities 941,990 (9,479) 1,394,731 2,327,242
Cash flows from noncapital financing activities:
Gross receipts taxes 672,576 - - 672,576
Miscellaneous income 405 - - 405
Repayment of interfund loans 1,364 - 3,290 4,654
Transfers (net)(17,301) - - (17,301)
Net cash provided by noncapital financing activities 657,044 - 3,290 660,334
Cash flows from investing activities:
Interest income 63,399 - 6,673 70,072
Net cash provided by investing activities 63,399 - 6,673 70,072
Cash flows from capital and related financing activities:
Interest paid (91,484) - (8,386) (99,870)
Capital grants 3,079,937 - - 3,079,937
Acquisition of capital assets (3,650,573) - (243,825) (3,894,398)
Principal payments on loans (490,346) - (183,425) (673,771)
Net cash (used) by capital and related financing activities (1,152,466) - (435,636) (1,588,102)
Net increase (decrease) in cash and cash equivalents 509,967 (9,479) 969,058 1,469,546
Cash and cash equivalents - beginning of year 5,270,971 651,394 3,726,461 9,648,826
Cash and cash equivalents - end of year 5,780,938$ 641,915$ 4,695,519$ 11,118,372$
Reconciliation of operating income (loss) to
net cash provided (used) by operating activities:
Operating income (loss)(646,304)$ (2,787)$ 738,538$ 89,447$
Adjustments to reconcile operating income (loss) to
net cash provided by operating activities:
Depreciation 1,724,083 27,195 344,693 2,095,971
Net pension and OPEB expense 33,952 - (21,997) 11,955
Changes in assets and liabilities:
Receivables 283,701 (33,733) 102,080 352,048
Inventory (57,022) - - (57,022)
Accounts payable (409,689) (154) 247,129 (162,714)
Accrued payroll expenses 2,258 - (2,332) (74)
Customer deposits 6,321 - - 6,321
Accrued compensated absences 4,690 - (13,380) (8,690)
Net cash provided (used) by operating activities 941,990$ (9,479)$ 1,394,731$ 2,327,242$
For the Year Ended June 30, 2023
Proprietary Funds
Statement of Cash Flows
TOWN OF TAOS
The accompanying notes are an integral part of these financial statements.43
TOWN OF TAOS Exhibit E-1
Custodial Funds
Assets
Cash 37,477$
Investments 60,000
Total assets 97,477$
Liabilities
Due to other entities 97,477$
Total liabilities 97,477$
Statement of Fiduciary Net Position
June 30, 2023
The accompanying notes are an integral part of these financial statements.44
TOWN OF TAOS Exhibit E-2
Custodial Funds
Additions:
Charges for services 11,517$
Total additions 11,517
Deductions:
Contractual services and other 4,463
Total deductions 4,463
Change in custodial funds due to others 7,054
Beginning - custodial funds due to others 90,423
Ending - custodial funds due to others 97,477$
For the Year Ended June 30, 2023
Statement of Changes in Fiduciary Net Position
The accompanying notes are an integral part of these financial statements.45
TOWN OF TAOS
Notes to the Financial Statements
June 30, 2023
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 and sewer, solid waste, and landfill),
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 Town and its inhabitants;
7. Preserve peace and order within the Town; and
8. Establish rates for services provided by the Town 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 Town of Taos is presented to assist in the
understanding of Town of Taos’s financial statements. The financial statements and notes are the
representation of Town of Taos’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 entities. At year
end June 30, 2023, there is no GASB Statement No. 77 disclosure requirement.
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.
46
TOWN OF TAOS
Notes to the Financial Statements
June 30, 2023
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, the governmental activities column (a) is
presented on a consolidated basis by column, (b) and is reported on a full accrual, economic
resource basis, which recognizes all long-term assets and receivables as well as long-term debt
obligations. The Town’s net position is reported in three parts – net investments 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 segment 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 and 2) grants and contributions that are restricted to
meeting the operational or capital requirements of a particular function. 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.
47
TOWN OF TAOS
Notes to the Financial Statements
June 30, 2023
NOTE 1. Summary of Significant Accounting Policies (continued)
C. Measurement focus, basis of accounting, and financial statement presentation
The government-wide financial statements are reported using the economic resources
measurement focus and the accrual basis of accounting, as are the 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 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 of time, reimbursement and contingencies
imposed by the provider are met.
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. 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. 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.
Expenditure-driven grants are recognized as revenue when the qualifying expenditures have
been incurred and all other grant requirements have been met and the susceptible to accrual
criteria have been met. All other revenue items are considered to be measurable and available
only when cash is received by the Town.
Program revenues included in the Statement of Activities are derived directly from the program
itself or from parties outside the Town’s taxpayer 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 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.
48
TOWN OF TAOS
Notes to the Financial Statements
June 30, 2023
NOTE 1. Summary of Significant Accounting Policies (continued)
C. Measurement focus, basis of accounting, and financial statement presentation (continued)
Proprietary funds distinguish operating revenues and expense 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 for the Town’s
enterprise funds 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.
Under the requirements of GASB Statement No. 34, the Town is required to present certain of
its governmental funds as major based upon certain criteria. The major funds presented in the
fund financial statements include the following, which includes funds that were not required to
be presented as major but were at the discretion of management:
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. Revenues are provided through property and other taxes, federal
sources, state sources, charges for services, licenses and fees, and other miscellaneous
recoveries and revenue. Expenditures include all costs associated with the daily
operation of the Town except for items included in other funds.
The Airport Construction Fund (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 Capital Projects Fund (Capital Projects Fund) was created to accumulate revenue
and other financing sources for the purpose of financing general-purpose capital
projects. Authority is Town Council resolution.
The Town reports its proprietary funds as major funds. Proprietary funds (enterprise 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 residents
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.
49
TOWN OF TAOS
Notes to the Financial Statements
June 30, 2023
NOTE 1. Summary of Significant Accounting Policies (continued)
C. Measurement focus, basis of accounting, and financial statement presentation (continued)
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, street cut deposits, and recreational events.
As a general rule the effect of interfund activity has been eliminated from the government-wide
financial statements. Exceptions to this general rule are payments-in-lieu of taxes 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.
D. Assets, Deferred Outflow of Resources, Liabilities, Deferred Inflow 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. 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.
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 funds and
reduces its related cost as a reimbursement. All other interfund transactions are treated as
transfers. Transfers between governmental 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 after 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. In the government-wide and
governmental fund financial statements, delinquent property taxes are recorded as revenue
when levied net of estimated refunds and uncollectable amounts.
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 May 10th are considered delinquent. The taxes attach as an
enforceable lien on property as of January 1st. Property taxes are collected by Taos County and
are remitted monthly to the Town.
50
TOWN OF TAOS
Notes to the Financial Statements
June 30, 2023
NOTE 1. Summary of Significant Accounting Policies (continued)
D. Assets, Deferred Outflow of Resources, Liabilities, Deferred Inflow of Resources, and Net Position or
Equity (continued)
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
the recognition of the expenditures until the period in which the inventories actually are
consumed. Inventory is valued at cost.
Restricted Assets: Restricted assets consist of those funds’ expendable for debt service, meter
deposits, and landfill purposes, which are restricted as to the specific purpose for which they
may be expended. Restricted cash in the amount of $1,786,857, and restricted investments in
the amount of $75,400, at June 30, 2023 are reported in the statement of net position.
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 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. Town of
Taos was a phase II government for purposes of implementing GASB 34. Therefore, the Town
was required to report its major general infrastructure assets retroactively to June 30, 1980.
The Town has made the required restatement for infrastructure assets retroactive to June 30,
1980, in order to properly implement GASB 34. Information Technology Equipment including
software is being capitalized and included in furniture, fixtures and equipment in accordance
with NMAC 2.20.1.9 C (5). Donated assets are recorded at fair market value when received.
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.
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 fiscal year 2023. 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 (including airport) 10-50
Accrued Expenses: Accrued expenses are comprised of the payroll expenditures based on
amounts earned by the employees through June 30, 2023, along with applicable PERA, FICA,
RHC and Medicare accruals.
Deposits Held in Trust For Others: Deposits held in trust for others consists of security
deposits for the Civic Center, street deposits, and meter deposits as of June 30, 2023.
51
TOWN OF TAOS
Notes to the Financial Statements
June 30, 2023
NOTE 1. Summary of Significant Accounting Policies (continued)
D. Assets, Deferred Outflow of Resources, Liabilities, Deferred Inflow of Resources, and Net Position or
Equity (continued)
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, deferred
outflows of resources, 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
four types of items that qualify for reporting in this category related to the pension and OPEB
plans which are discussed at Notes 11 and 12.
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, deferred
inflows of resources, 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 item, which arises under the modified accrual basis of accounting that qualifies for
reporting in this category. Accordingly, the item, unavailable revenue – property taxes, are
reported only in the governmental funds balance sheet. These amounts are deferred and
recognized as an inflow of resources in the period that the amounts become available. The
Town has recorded $241,259 related to property taxes that are considered “unavailable”. The
Town also has items related to the pension and OPEB plans which are discussed at Notes 11
and 12.
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 fund 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.
52
TOWN OF TAOS
Notes to the Financial Statements
June 30, 2023
NOTE 1. Summary of Significant Accounting Policies (continued)
D. Assets, Deferred Outflow of Resources, Liabilities, Deferred Inflow 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 (PERA) and additions
to/deductions from PERA’s fiduciary net position have been determined on the same basis as
they are reported by PERA, 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.
Postemployment Benefits Other Than Pensions (OPEB) For purposes of measuring the net
OPEB liability, deferred outflows of resources and deferred inflows of resources related to
OPEB, and OPEB expense, information about the fiduciary net position of the New Mexico
Retiree Health Care Authority (NMRHCA) and additions to and deductions from NMRHCA’s
fiduciary net position have been determined on the same basis as they are reported by
NMRHCA. For this purpose, NMRHCA recognizes benefit payments when due and payable in
accordance with the benefit terms. Investments are reported at fair value.
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 nonspendable fund balance of $143,601 at June
30, 2023.
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 $7,973,826 in restricted fund balances at June 30, 2023.
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 $16,536,246 in
committed funds at June 30, 2023 for governmental, public safety, transportation and roads,
and capital expenditures.
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 Town Council has delegated the authority to assign amounts to be
used for specific purposes to the Finance Director.
53
TOWN OF TAOS
Notes to the Financial Statements
June 30, 2023
NOTE 1. Summary of Significant Accounting Policies (continued)
D. Assets, Deferred Outflow of Resources, Liabilities, Deferred Inflow of Resources, and Net Position or
Equity (continued)
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, however the
Town has committed fund balance of 4/12th per Town Council. The Town has also presented
committed fund balance on the governmental funds balance sheet including $3,922,369 for
minimum fund balance for the year ended June 30, 2023. As these amounts are an
accumulation of resources and not a true restriction or commitment of expenditures, they are
reflected within the unassigned fund balance of the general fund.
Net Position: Equity is classified as net position and displayed in three components:
a. Net Investment in Capital Assets: Net investment in capital assets consist 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, and capital projects” are described on pages 47 and 106-107.
c. Unrestricted Net Position: All other net position that do 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 for the Town include the depreciable
lives of capital assets, estimated allowance for uncollectible accounts receivables, the Town’s
estimate landfill closure and post closure costs, and the Town’s net pension and OPEB liabilities
and related deferred inflows and outflows of resources.
54
TOWN OF TAOS
Notes to the Financial Statements
June 30, 2023
NOTE 1. Summary of Significant Accounting Policies (continued)
E.Newly Adopted Accounting Pronouncements
During the year ended June 30, 2023 the Town adopted GASB Statements No.91, Conduit Debt
Obligations, No. 93 Replacement of Interbank Offered Rates, No. 94, Public‐Private and
Public‐Public Partnerships and Availability Payment Arrangements, No. 96 Subscription‐Based
Information Technology Arrangements, No. 98, The Annual Comprehensive Financial Report, No.
99 Omnibus 2022. The Town’s accounting policy for accounting for Right of Use Assets and
related liabilities under GASB Statement No. 96 is to capitalize amounts more than $25,000.
None of these pronouncements have a significant impact on these financial statements.
NOTE 2. Stewardship, Compliance, and Accountability
Budgetary Information
Annual budgets of the Town are prepared prior to June 1 and must be approved by resolution of the
Town Councilors, and submitted to the Department of Finance and Administration for State approval.
Once the budget has been formally approved, any amendments must also be approved by the Town
Council Members and the Department of Finance and Administration. A separate budget is prepared for
each fund. Line items within each budget may be over-expended; however, it is not legally permissible
to over-expend any budget in total by fund.
Governmental fund budgets are prepared on the GAAP basis, excluding encumbrances, and secure
appropriation of funds for only one year. Carryover funds must be re-appropriated in the budget of the
subsequent fiscal year.
Proprietary fund budgets are prepared on the GAAP basis, excluding encumbrances, and secure
appropriation of funds for only one year. Carryover funds must be re-appropriated in the budget of the
subsequent fiscal year. The Town does not budget for depreciation expense, only capital outlay. The
budgetary information presented in these financial statements has been properly amended by Town
Council in accordance with the above procedures. These amendments resulted in the following changes:
Original Final
Budget Budget
Budgeted Funds:
General Fund 108,447$ 2,322,254$
Excess (deficiency) of
revenues over expenditures
Operating income (loss)
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.
55
TOWN OF TAOS
Notes to the Financial Statements
June 30, 2023
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. All invested funds of the Town properly followed State
investment requirements as of June 30, 2023. There are no specific state laws governing the ability to
spend net appreciation and investment income.
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.
The rate of interest on 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 an insured depository institution, including all noninterest-bearing
transaction accounts, 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, 2023, $32,976,786 of the Town’s deposits of $33,476,786 was exposed to
custodial credit risk. $32,976,786 was uninsured and collateralized by collateral held by the pledging
bank’s trust department, not in the Town’s name, and no amounts was uninsured and uncollateralized.
Total
Amount of deposits 10,764,836$ 22,711,950$ 33,476,786$
FDIC Coverage (250,000) (250,000) (500,000)
Total uninsured public funds 10,514,836 22,461,950 32,976,786
10,514,836 22,461,950 32,976,786
Uninsured and uncollateralized -$ -$ -$
Collateral requirement
(50% of uninsured funds) 5,257,418$ 11,230,975$ 16,488,393$
Pledged Collateral 11,000,000 23,139,425 34,139,425
Over (Under) collateralized 5,742,582$ 11,908,450$ 17,651,032$
Collateralized by securities held
by pledging institution or by its
trust department or agent in
other than the Town's name
US Bank Centinel Bank
56
TOWN OF TAOS
Notes to the Financial Statements
June 30, 2023
NOTE 3. Deposits and Investments (continued)
The collateral pledged is listed on Schedule II of this report. The types of collateral 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.
Investments
Credit Risk
The New MexiGROW 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 LGIP’s investments are monitored by the same policies and
procedures that apply to all other state investments. The pool does not have unit shares. Per Section 6-
10-10.1(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, 2023, the Town had the following investments and maturities:
Weighted Average
Investment Type Maturities Fair Value Rating
New Mexico Local Government
Investment Pool 22 Days ( R ); 86 Days ( F ) 4,149,961$ AAAm
U.S. Governmental Securities NA 3,000,000 Aaa
U.S. Treasury Notes <1 year 163,026 Aaa
7,312,987$
The Town has presented $7,312,987 in investments at year end. Of the $7,312,990 noted above
$163,026 is considered restricted cash and cash equivalents as these are invested by NMFA in US
Treasury notes. An additional $4,149,964 is invested in the Local Government Investment Pool. Lastly,
the Town has invested $3,000,000 in U.S. Fixed Income Securities. For purposes of cash flows at Exhibit
D-3 ending cash is considered to be cash and cash equivalents, restricted cash and cash equivalents.
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 96% and 4%, 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).
57
TOWN OF TAOS
Notes to the Financial Statements
June 30, 2023
NOTE 3. Deposits and Investments (continued)
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 following table sets forth by level within the fair value hierarchy, the Town’s assets at fair value as
of June 30, 2023:
Total Level 1 Level 2 Level 3
7,312,987$ -$ 7,312,987$ -$
58
TOWN OF TAOS
Notes to the Financial Statements
June 30, 2023
NOTE 3. Deposits and Investments (continued)
Reconciliation to the Statement of Net Position:
Cash and cash equivalents per Exhibit A-1 30,481,361$
Restricted cash and cash equivalents per Exhibit A-1 1,786,857
Cash and investments - Statement of Fiduciary Assets and Liabilities per Exhibit E-1 97,477
Investments per Exhibit A-1 7,014,561
Restricted investments per Exhibit A-1 75,400
Total cash, investments, and cash equivalents 39,455,656
Add: outstanding checks and other reconciling items 1,335,698
Less: NMFA restricted accounts (163,026)
Less: New Mexico Government Local Investment Pool (4,149,964)
Less: U.S. Fixed Income Securities (3,000,000)
Less: petty cash (1,578)
Bank balance of deposits 33,476,786$
NOTE 4. Receivables
Governmental receivables as of June 30, 2023 are comprised of the following:
Other
Airport Capital Governmental
General Construction Projects Funds Total
Property taxes 280,893$ -$ -$-$ 280,893$
Taxes receivable:
Gross receipts taxes 2,190,837 - 164,821 219,662 2,575,320
Franchise taxes 104,049 - --104,049
Lodger's taxes - - - 153,977 153,977
Oil and gas taxes 24,663 - - 10,523 35,186
MVD taxes 7,072 - - -7,072
Total taxes receivable 2,326,621 - 164,821 384,162 2,875,604
Due from other governments:
State grants 18,130 - - 461,439 479,569
Federal grants - 267,789 - -267,789
Total due from other governments 18,130 267,789 - 461,439 747,358
Accounts receivable, net 2,625,644$ 267,789$ 164,821$ 845,601$ 3,903,855$
In accordance with GASB Statement No. 33, property tax revenues in the amount of $241,259 that were
not collected within the period of availability have been reclassified as deferred inflows in the
governmental fund financial statements as of June 30, 2023.
59
TOWN OF TAOS
Notes to the Financial Statements
June 30, 2023
NOTE 4. Receivables (continued)
Business-type activity receivables as of June 30, 2023 are comprised of the following:
Water and
Sewer Solid Waste
Taos Regional
Landfill
Taxes receivable
Gross receipts taxes 123,953$ -$ -$
Customer receivable 1,622,637 46,203 183,273
Due from other governments:
State grants 312,612 - -
Federal grants 94,182 - -
Less: allowance for
uncollectable accounts (914,750) (12,470) (33,300)
Accounts receivable, net 1,238,634$ 33,733$ 149,973$
Total
Taxes receivable
Gross receipts taxes 123,953$
Customer receivable 1,852,113
Due from other governments:
State grants 312,612
Federal grants 94,182
Less: allowance for
uncollectable accounts (960,520)
Accounts receivable, net 1,422,340$
NOTE 5. Interfund Receivables, Payables, and Transfers
The Town records temporary interfund receivables and payables to cover cash deficits related to
accounts payable. All interfund balances are to be repaid within one year.
Due from other funds Due to other funds Amount
General Fund Water and Sewer Fund 18,957$
General Fund Taos Regional Landfill 8,911
Total 27,868$
Net operating transfers, made to supplement other funding sources were as follows:
60
TOWN OF TAOS
Notes to the Financial Statements
June 30, 2023
NOTE 5. Interfund Receivables, Payables, and Transfers (continued)
Transfers Out Transfers In Amount
General Fund Community Grants 465,000$
1/4 Cent Municipal Gross Receipts Tax 2008 Shared GRT Revenue Bond 551,000
General Fund Grant Match Fund 500,000
General Fund Corrections Fund 90,000
Lodger's Tax Public Transportation 311,842
Lodger's Tax Lodger's Tax Promotional 1,247,370
Taos Regional Landfill Taos Regional Landfill 2,108,200
Water and Sewer Water and Sewer 3,376,900
General Fund Special Events Enterprise 102,878
General Fund One Time Costs 542,500
General Fund General Fund 6,969,591
General Fund Capital Projects Fund 2,500,000
Capital Projects Fund 1999 Gas Tax Acquisition Fund 820,234
Municipal Road Gas Tax 1999 Gas Tax Acquisition Fund 251,804
1/4 Cent Municipal Gross Receipts Tax 1999 Gas Tax Acquisition Fund 518,147
Water and Sewer 1998-A Water & Sewer Revenue Bond 330,809
Water and Sewer Utility Improvement Fund 893,528
Total 21,579,803$
NOTE 6. Leases
As Lessee
During the year 2022 the Town implemented GASB Statement No. 87, Leases and the Town has long
term agreements for the use of land and equipment which began on July 1, 2021 and will continue
through fiscal year 2032. These leases are as follows:
The Town paid monthly for copiers, with payments of $2,589.40, and started on July 1, 2021.
The equipment has a useful life of 5 years with no purchase option, and a discount rate of 3%.
The Town paid monthly for three pieces of land used for public parking, with monthly
payments of $3,750 and which started on July 1, 2021. The land has useful lives of 10 years each
with no purchase options and a discount rate of 3%.
61
TOWN OF TAOS
Notes to the Financial Statements
June 30, 2023
NOTE 6. Leases (continued)
A summary of the right to use the assets and changes occurring during the year ended June 30, 2023
follows:
Balance Balance
June 30, 2022 Additions Dispositions June 30, 2023
Right of Use Asset
Land 144,466$ -$ -$144,466$
Equipment 516,561 - - 516,561
Total right of use asset 661,027 - - 661,027
Less accumulated amortization for:
Land 28,893$ 28,893$ -$ 57,786$
Equipment 57,396 57,396 - 114,792
Total accumulated amortization 86,289 86,289 - 172,578
Right of use asset, net 574,738$ (86,289)$ -$ 488,449$
During the year ended June 30, 2023, the following changes occurred in the lease liabilities related to
the right of use assets reported above in the government-wide statement of net position:
Balance Balance Due Within
June 30, 2022 Additions Retirements June 30, 2023 One Year
Lease liability 583,077$ -$ 80,320$ 502,757$ 82,763$
583,077$ -$ 80,320$ 502,757$ 82,763$
The annual requirements to amortize the leases as of June 30, 2023, including interest payments, is as
follows:
Fiscal Year
Ending June 30, Principal Interest
2024 82,763$ 13,710$ 96,473$
2025 85,280 11,192 96,472
2026 87,874 8,598 96,472
2027 58,965 6,435 65,400
2028 53,894 5,836 59,730
2029-2032 133,981 2,489 136,470
502,757$ 48,260$ 551,017$
Total Debt
Service
62
TOWN OF TAOS
Notes to the Financial Statements
June 30, 2023
NOTE 7. Capital Assets
The following is a summary of capital assets and changes occurring during the year ended June 30,
2023. Land and construction in progress are not subject to depreciation.
Governmental Activities:
Balance
June 30, 2022 Additions
Balance
June 30, 2023
Capital assets not being
depreciated:
Land 6,615,288$ -$ 108,900$ 6,506,388$
Construction in progress 5,239,837 3,695,095 - 8,934,932
Total not being depreciated 11,855,125 3,695,095 108,900 15,441,320
Capital assets being depreciated:
Land improvements 7,527,676 1,181,233 - 8,708,909
Buildings and improvements 37,287,682 748,908 489,650 37,546,940
Machinery and Equipment 19,790,394 1,131,025 - 20,921,419
Infrastructure 87,345,085 - - 87,345,085
Total being depreciated 151,950,837 3,061,166 489,650 154,522,353
Total capital assets 163,805,962 6,756,261 598,550 169,963,673
Accumulated depreciation:
Land improvements 6,068,098 219,218 - 6,287,316
Buildings and improvements 24,395,895 1,139,319 489,650 25,045,564
Machinery and Equipment 16,021,138 791,688 - 16,812,826
Infrastructure 55,954,738 2,698,582 - 58,653,320
Total accumulated depreciation 102,439,869 4,848,807 489,650 106,799,026
Capital assets, net 61,366,093$ 1,907,454$ 108,900$ 63,164,647$
Deletions
and
Transfers
Depreciation expense for the year ended June 30, 2023 was charged to the functions of the
governmental activities as follows:
General 4,412,415$
Public safety 96,977
Public works 339,415
Total 4,848,807$
63
TOWN OF TAOS
Notes to the Financial Statements
June 30, 2023
NOTE 7. Capital Assets (continued)
Balance
June 30, 2022 Additions
Deletions and
Transfers
Balance
June 30, 2023
Capital assets not being
depreciated:
Land 262,422$ -$ -$ 262,422$
Construction in progress 3,539,981 3,826,290 - 7,366,271
Total not being depreciated 3,802,403 3,826,290 - 7,628,693
Capital assets being depreciated:
Land improvements 104,895 - - 104,895
Buildings and improvements 6,756,693 19,986 - 6,776,679
Machinery and Equipment 10,175,770 48,122 - 10,223,892
Infrastructure 39,766,796 - - 39,766,796
Total being depreciated 56,804,154 68,108 - 56,872,262
Total capital assets 60,606,557 3,894,398 - 64,500,955
Accumulated depreciation:
Land improvements 97,515 - - 97,515
Buildings and improvements 3,617,379 218,081 - 3,835,460
Machinery and Equipment 9,217,580 264,545 - 9,482,125
Infrastructure 22,749,018 1,613,345 - 24,362,363
Total accumulated depreciation 35,681,492 2,095,971 - 37,777,463
Capital assets, net 24,925,065$ 1,798,427$ -$26,723,492$
Business-type Activities:
64
TOWN OF TAOS
Notes to the Financial Statements
June 30, 2023
NOTE 8. Long‐term Debt
During the year ended June 30, 2023, the following changes occurred in the liabilities reported in the
government-wide statement of net position:
Governmental Activities:
Balance
June 30, 2022 Additions Retirements
Balance
June 30, 2023
Due Within
One Year
Revenue Bonds 1,980,000$ -$ 465,000$ 1,515,000$ 485,000$
Compensated Absences 745,816 490,424 363,554 872,686 363,554
Total 2,725,816$ 490,426$ 828,554$ 2,387,688$ 848,554$
Revenue Bonds
At June 30, 2023, 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:
Description Date of Issue Due Date Interest Rate
Original
Amount of
Issue
Series 2008 Gross Receipts Tax 1/30/2008 6/1/2026 4.00-5.00% 6,395,000$
The annual requirements to amortize the revenue bond as of June 30, 2023, including interest
payments, are as follows:
2023 485,000$ 63,630$ 548,630$
2024 505,000 43,260 548,260
2025 525,000 22,050 547,050
Total 1,515,000$ 128,940$ 1,643,940$
Fiscal Year
Ending June 30, Principal Interest
Total Debt
Service
65
TOWN OF TAOS
Notes to the Financial Statements
June 30, 2023
NOTE 8. Long‐term Debt (continued)
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, 2023, government-wide
compensated absences increased $126,870 from the prior year accrual. Compensated absences are
liquidated by the respective funds in which they are accrued.
Proprietary Funds:
The proprietary funds have incurred various forms of debt which were used for the purposes of
constructing, expanding, repairing and making improvements to its property, plant and equipment. The
following schedule shows the changes to its various forms of debt during the fiscal year ended June 30,
2023:
Business‐type Activities:
Balance
June 30, 2022 Additions Retirements
Balance
June 30, 2023
Due Within
One Year
Revenue Bonds 1,398,600$ -$ 367,000$ 1,031,600$ 64,000$
NMFA and RUS Loans 2,406,497 -306,771 2,099,726 335,518
Landfill closure and
postclosure 658,400 -31,521 626,879 -
Compensated Absences 109,603 31,782 40,472 100,913 37,977
Total 4,573,100$ 31,782$ 745,764$ 3,859,118$ 437,495$
Revenue Bonds
At June 30, 2023, the Town had the following revenue bonds outstanding:
Description Date of Issue Due Date Interest Rate
Original
Amount of
Issue
Series 1993A Water and Sewer 3/16/1993 3/16/2033 5.63%635,600$
Series 1995A Water and Sewer 12/5/1995 12/5/2035 5.13% 1,315,000$
Series 1998A Water and Sewer 7/1/1999 1/1/2038 4.75%475,000$
66
TOWN OF TAOS
Notes to the Financial Statements
June 30, 2023
NOTE 8. Long‐term Debt (continued)
The annual requirements to amortize the revenue bonds as of June 30, 2023, including
interest payments, are as follows:
2024 64,000$ 54,394$ 118,394$
2025 68,000 50,998 118,998
2026 71,000 47,387 118,387
2027 75,000 43,619 118,619
2028 79,000 39,635 118,635
2029-2033 463,600 130,625 594,225
2034-2037 211,000 21,935 232,935
Total 1,031,600$ 388,593$ 1,420,193$
Fiscal Year
Ending June 30, Principal Interest
Total Debt
Service
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:
Description Date of Issue Due Date Interest Rate
Original
Amount of
Issue
NMFA/WTB Water Project Fund Loan 9/11/2009 6/1/2029 0.00%130,000$
NMFA/WTB Water Project Fund Loan 9/11/2009 6/1/2029 0.00%600,000$
NMED/ARRA Water State Revolving
Fund Loan 11/23/2009 6/30/2030 0.00% 1,200,000$
NMFA/WTB Water Project Fund Loan 4/19/2013 6/1/2033 0.00%197,390$
NMFA New Cell for Landfill Facility Loan 8/28/2015 6/1/2025 0.38-2.24% 1,376,046$
NMED Solar Array Project 5/24/2016 7/1/2031 0.01%$ 810,662
67
TOWN OF TAOS
Notes to the Financial Statements
June 30, 2023
NOTE 8. Long‐term Debt (continued)
The annual requirements to amortize the loans as of June 30, 2023, including interest payments are as
follows:
2024 335,518$ 4,353$ 339,871$
2025 339,918 77 339,995
2026 148,041 73 148,114
2027 148,165 69 148,234
2028 148,287 65 148,352
2029-2033 590,483 265 590,748
2034-2038 202,715 161 202,876
2039-2043 186,599 60 186,659
Total 2,099,726$ 5,123$ 2,104,849$
Fiscal Year
Ending June 30, Principal Interest
Total Debt
Service
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, 2023, business-type compensated
absences decreased $8,690 from the previous year accrual. Compensated absences are liquidated by the
respective funds in which they are accrued
NOTE 9. Risk Management
The Town is exposed to various risks of loss related to torts, theft of, damage to, and destruction of
assets; errors and omissions; injuries and natural disasters. The Town is a member and is insured
through the New Mexico Town Insurance Authority. The Authority was created to provide
comprehensive core insurance programs by expanding the pool of subscribers to maximize cost
containment opportunities for required insurance coverage. The Authority acts as the common carrier
for the State of New Mexico cities. The Town pays an annual premium to the Authority based on claim
experience and the status of the pool. The Risk Management Program includes Workers Compensation,
General and Automobile Liability, Automobile Physical Damage, and Property and Crime coverage. The
Town is not liable for more than the premiums paid. The Town has not had any insurance settlements
that exceeded insurance coverage amounts in the preceding three fiscal years.
NOTE 10. 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. There were no funds that had a deficit fund balance for
the year ended June 30, 2023.
B.Excess of expenditures over appropriations. There were no funds in which fund expenditures
were in excess of the budgeted appropriations for the year ended June 30, 2023.
C.Designated cash appropriations in excess of available balances. There were no funds with
designated cash appropriation in excess of available balances for the year ended June 30, 2023.68
TOWN OF TAOS
Notes to the Financial Statements
June 30, 2023
NOTE 11. Pension Plan – Public Employee Retirement Association of NM
Public Employees Retirement Fund is a cost-sharing, multiple employer defined benefit pension plan.
This fund has six divisions of members, including State General, State Police/Adult Correction Officers,
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 Public Employees Retirement 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), each employee and elected official
of every affiliated public employer is required to be a member in the Public Employees Retirement
Fund, unless specifically excluded. PERA issues a publicly available annual comprehensive financial
report that can be obtained at https://www.nmpera.org/financial‐overview/.
Benefits Provided – Benefits are generally available at age 65 with five or Benefits are generally
available at age 65 with five or more years of service or after 25 years of service regardless of age for
TIER I members. Provisions also exist for retirement between ages 60 and 65, with varying amounts of
service required. Certain police and fire members may retire at any age with 20 or more years of service
for Tier I members.
Generally, the amount of retirement pension is based on final average salary, which is defined under
Tier I as the average of salary for the 36 consecutive months of credited service producing the largest
average; credited service; and the pension factor of the applicable coverage plan. Monthly benefits vary
depending upon the plan under which the member qualifies, ranging from 2% to 3.5% of the member’s
final average salary per year of service. The maximum benefit that can be paid to a retiree may not
exceed a range of 60% to 90% of the final average salary, depending on the division. Benefits for duty
and non-duty death and disability and for post-retirement survivors’ annuities are also available.
TIER II
The retirement age and service credit requirements for normal retirement for PERA state and municipal
general members hired increased effective July 1, 2013 with the passage of Senate Bill 27 in the 2013
Legislative Session. Under the new requirements (Tier II), general members are eligible to retire at any
age if the member has at least eight years of service credit and the sum of the member’s age and service
credit equals at least 85 or at age 65 with 5 or more years of service credit. General members hired on
or before June 30, 2013 (Tier I) remain eligible to retire at any age with 25 or more years of service
credit. Under Tier II, police and firefighters in Plans 3, 4 and 5 are eligible to retire at any age with 25 or
more years of service credit. State police and adult correctional officers, peace officers and municipal
juvenile detention officers will remain in 25-year retirement plans, however, service credit will no
longer be enhanced by 20%. All public safety members in Tier II may retire at age 60 with 6 or more
years of service credit. Generally, under Tier II pension factors were reduced by .5%, employee
Contribution increased 1.5 percent and effective July 1, 2014 employer contributions were raised .05
percent. The computation of final average salary increased as the average of salary for 60 consecutive
months.
69
TOWN OF TAOS
Notes to the Financial Statements
June 30, 2023
NOTE 11. Pension Plan – Public Employee Retirement Association of NM (continued)
Contributions – See PERA’s compressive annual financial report for Contribution provided description.
PERA Contribution Rates and Pension Factors in effect during FY22
Coverage Plan
Coverage Plan
Employee Contribution
Percentage
Employer
Contribution
Percentage
Pension Factor per
year of Service
Pension
Maximum
as a
Percentage
of the Final
Average
Salary
Annual
Salary less
than
$20,000
Annual
Salary
greater than
$20,000
TIER 1 TIER 2
STATE PLAN
State Plan 3 7.42% 9.92% 18.24% 3.00% 2.50% 90.00%
MUNICIPAL PLANS 1 ‐ 4
Municipal Plan 1
(plan open to new employers) 7.00% 8.50% 7.65% 2.00% 2.00% 90.00%
Municipal Plan 2 (plan open to new employers) 9.15% 10.65% 9.80% 2.50% 2.00% 90.00%
Municipal Plan 3 (plan closed to new employers 6/95) 13.15% 14.65% 9.80% 3.00% 2.50% 90.00%
Municipal Plan 4 (plan closed to new employers 6/00) 15.65% 17.15% 12.30% 3.00% 2.50% 90.00%
MUNICIPAL POLICE PLANS 1 ‐ 5
Municipal Police Plan 1 7.00% 8.50% 10.65% 2.00% 2.00% 90.00%
Municipal Police Plan 2 7.00% 8.50% 15.65% 2.50% 2.00% 90.00%
Municipal Police Plan 3 7.00% 8.50% 19.15% 2.50% 2.00% 90.00%
Municipal Police Plan 4 12.35% 13.85% 19.15% 3.00% 2.50% 90.00%
Municipal Police Plan 5 16.30% 17.80% 19.15% 3.50% 3.00% 90.00%
MUNICIPAL FIRE PLANS 1 ‐ 5
Municipal Fire Plan 1 8.00% 11.00% 11.65% 2.00% 2.00% 90.00%
Municipal Fire Plan 2 8.00% 11.00% 18.15% 2.50% 2.00% 90.00%
Municipal Fire Plan 3 8.00% 11.00% 21.90% 2.50% 2.00% 90.00%
Municipal Fire Plan 4 12.80% 15.80% 21.90% 3.00% 2.50% 90.00%
Municipal Fire Plan 5 16.20% 19.20% 21.90% 3.50% 3.00% 90.00%
MUNICIPAL DETENTION OFFICER PLAN 1
Municipal Detention Officer Plan 1 16.65% 18.15% 17.30% 3.00% 3.00% 90.00%
STATE POLICE AND ADULT CORRECTIONAL OFFICER PLANS, ETC.
State Police and Adult Correctional Officer Plan 1 7.60% 9.10% 25.50% 3.00% 3.00% 90.00%
State Plan 3 - Peace Officer 7.42% 9.92% 18.24% 3.00% 3.00% 90.00%
Juvenile Correctional Officer Plan 2 4.78% 7.28% 27.37% 3.00% 3.00% 90.00%
70
TOWN OF TAOS
Notes to the Financial Statements
June 30, 2023
NOTE 11. Pension Plan – Public Employee Retirement Association of NM (continued)
Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of
Resources Related to Pensions –
PERA Fund Division Municipal General: At June 30, 2023, the Town reported a liability of $6,815,829
for its proportionate share of the net pension liability. The net pension liability was measured as of June
30, 2022, and the total pension liability used to calculate the net pension liability was determined by an
actuarial valuation as of June 30, 2021. The total pension liability was rolled-forward from the valuation
date to the plan year ending June 30, 2022 using generally accepted actuarial principles. Therefore, the
employer’s portion was established as of the measurement date of June 30, 2021.
There were no significant events or changes in benefit provision that required an adjustment to the roll-
forward liabilities as of June 30, 2022.
The Town’s proportion of the net pension liability was based on a projection of the Town’s long-term
share of contributions to the pension plan relative to the projected contributions of all participating
entities, actuarially determined. At June 30, 2022, the Town’s proportion was 0.3843 percent, which was
a increase of 0.02317 percent from its proportion measured as of June 30, 2021.
For the year ended June 30, 2023, the Town recognized pension expense of $706,919. At June 30, 2023,
the Town reported deferred outflows of resources and deferred inflows of resources related to pensions
from the following sources:
Deferred Outflow Deferred Inflow
of Resources of Resources
Changes of assumptions -$ -$
Changes in proportion 260,816 267,269
Difference between expected and actual experience 27,323 165,758
Net difference between projected and actual
earnings on pension plan investments 674,533 -
Town's contributions subsequent to the
measurement date 431,584 -
Total 1,394,256$ 433,027$
$431,584 reported as deferred outflows of resources related to pensions resulting from the Town’s
contributions subsequent to the measurement date will be recognized as a reduction of the net pension
liability in the year ended June 30, 2023. Other amounts reported as deferred outflows of resources and
deferred inflows of resources related to pensions will be recognized in pensions expense as follows:
Year ended June 30:
2024 72,167$
2025 99,463
2026 (174,577)
2027 532,592
Thereafter -
Total 529,645$
71
TOWN OF TAOS
Notes to the Financial Statements
June 30, 2023
NOTE 11. Pension Plan – Public Employee Retirement Association of NM (continued)
PERA Fund Division Municipal Police: At June 30, 2023, The Town reported a liability of $3,593,046
for its proportionate share of the net pension liability. The net pension liability was measured as of June
30, 2022, and the total pension liability used to calculate the net pension liability was determined by an
actuarial valuation as of June 30, 2021. The total pension liability was rolled-forward from the valuation
date to the plan year ending June 30, 2022 using generally accepted actuarial principles. Therefore, the
employer’s portion was established as of the measurement date of June 30, 2021. There were no
significant events or changes in benefit provision that required an adjustment to the roll-forward
liabilities as of June 30, 2022.
The Town’s proportion of the net pension liability was based on a projection of the Town’s long-term
share of contributions to the pension plan relative to the projected contributions of all participating
entities, actuarially determined. At June 30, 2022, the Town’s proportion was 0.4471 percent, which
was an increase of 0.04068 percent from its proportion measured as of June 30, 2021.
For the year ended June 30, 2023, the Town recognized pension expense of $314,184. At June 30, 2023,
The Town reported deferred outflows of resources and deferred inflows of resources related to
pensions from the following sources:
Deferred Outflow Deferred Inflow
of Resources of Resources
Changes of assumptions -$-$
Changes in proportion 194,851 159,471
Difference between expected and actual experience 93,593 -
Net difference between projected and actual
earnings on pension plan investments 313,953 -
Town's contributions subsequent to the
measurement date 234,593 -
Total 836,990$ $ 159,471
$234,593 reported as deferred outflows of resources related to pensions resulting from the Town’s
contributions subsequent to the measurement date will be recognized as a reduction of the net pension
liability in the year ended June 30, 2023. Other amounts reported as deferred outflows of resources and
deferred inflows of resources related to pensions will be recognized in pensions expense as follows:
Year ended June 30:
2024 90,096$
2025 149,197
2026 (46,064)
2027 249,696
Thereafter -
Total 442,925$
72
TOWN OF TAOS
Notes to the Financial Statements
June 30, 2023
NOTE 11. Pension Plan – Public Employee Retirement Association of NM (continued)
PERA Fund Division Municipal Fire: At June 30, 2023, The Town reported a liability of $3,148,396 for
its proportionate share of the net pension liability. The net pension liability was measured as of June 30,
2022, and the total pension liability used to calculate the net pension liability was determined by an
actuarial valuation as of June 30, 2021. The total pension liability was rolled-forward from the valuation
date to the plan year ending June 30, 2022 using generally accepted actuarial principles. Therefore, the
employer’s portion was established as of the measurement date of June 30, 2021. There were no
significant events or changes in benefit provision that required an adjustment to the roll-forward
liabilities as of June 30, 2022.
The Town’s proportion of the net pension liability was based on a projection of the Town’s long-term
share of contributions to the pension plan relative to the projected contributions of all participating
entities, actuarially determined. At June 30, 2022, the Town’s proportion was 0.4146 percent, which
was a increase of 0.11826 percent from its proportion measured as of June 30, 2021.
For the year ended June 30, 2023, the Town recognized pension expense of $597,731. At June 30, 2023,
The Town reported deferred outflows of resources and deferred inflows of resources related to
pensions from the following sources:
Deferred Outflow Deferred Inflow
of Resources of Resources
Changes of assumptions -$ -$
Changes in proportion 695,301 -
Difference between expected and actual experience 19,583 2,223
Net difference between projected and actual
earnings on pension plan investments 140,381 -
Town's contributions subsequent to the
measurement date 145,502 -
Total 1,000,767$ 2,223$
$145,502 reported as deferred outflows of resources related to pensions resulting from the Town’s
contributions subsequent to the measurement date will be recognized as a reduction of the net pension
liability in the year ended June 30, 2023. Other amounts reported as deferred outflows of resources and
deferred inflows of resources related to pensions will be recognized in pensions expense as follows:
Year ended June 30:
2024 367,959$
2025 285,176
2026 89,738
2027 110,169
Thereafter -
853,042$
73
TOWN OF TAOS
Notes to the Financial Statements
June 30, 2023
NOTE 11. Pension Plan – Public Employee Retirement Association of NM (continued)
Actuarial assumptions. The total pension liability in the June 30, 2021 actuarial valuation was
determined using the following significant actuarial assumptions, applied to all periods included in the
measurement:
PERA FUND
Actuarial Valuation Date June 30, 2021
Actuarial Cost Method Entry Age Normal
Amortization Method
Level Percentage of Payroll for all divisions except for the
Legislative division with is Level Dollar.
Amortization Period 25 years
Actuarial Assumptions:
Investment Rate of Return 7.25% annual rate, net of investment expense
Projected benefit payment 100 years
Payroll Growth 3.00%
Projected Salary increases 3.25% to 13.50% annual rate
Includes Inflation at 2.50%
2.75% all other years
Mortality Assumption
The mortality assumptions are based on the RPH-2014 Blue
Collar mortality table with female ages set forward one year.
Future improvement in mortality rates is assumed using 60%
of the MP-2017 projection scale generational. For non- public
safety groups, 25% of in-service deaths are assumed to be
duty related and 35% are assumed to be duty-related for
public safety groups.
Experience Study Dates
July 1, 2008 to June 30, 2017 (demographic) and July 1, 2013
through June 30, 2017 (economic)
The total pension liability, net pension liability, and certain sensitivity information are based on an
actuarial valuation performed as of June 30, 2021. The total pension liability was rolled-forward from
the valuation date to the plan year ended June 30, 2022. These assumptions were adopted by the Board
use in the June 30, 2021 actuarial valuation.
The long-term expected rate of return on pension plan investments was determined using a building-
block method 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
allocation and best estimates of arithmetic real rates of return for each major asset class are
summarized in the following table:
74
TOWN OF TAOS
Notes to the Financial Statements
June 30, 2023
NOTE 11. Pension Plan – Public Employee Retirement Association of NM (continued)
Asset Class
Target
Allocation
Long‐term
Expected Real
Rate of Return
Global Equity 35.50% 6.35%
Risk Reduction & Mitigation 19.50% 1.90%
Credit Oriented Fixed Income 15.00% 4.45%
Real Assets to include Real Estate Equity 20.00%
Multi-Risk Allocation 10.00%
5.10%
6.65%
Total 100.00%
Discount rate. A single discount rate of 7.25% was used to measure the total pension liability as of June
30, 2022. This single discount rate was based on a long-term expected rate of return on pension plan
investments of 7.25% compounded annually, net of expense. Based on the stated assumptions and the
projection of cash flows, the plan’s fiduciary net position and future contributions were projected to be
available to finance all projected future benefit payments of current plan members. Therefore, the long-
term expected rate of return on pension plan investments was applied to all period of projected benefit
payments to determine the total pension liability.
The projections of cash flows used to determine this single discount rate assumed that plan member and
employer contributions will be made at the current statutory levels.
Sensitivity of the County’s proportionate share of the net pension liability to changes in the discount rate.
The following presents the County’s proportionate share of the net pension liability calculated using the
discount rate of 7.25 percent, as well as what the County’s proportionate share of the net pension
liability would be if it were calculated using a discount rate that is 1-percentage-point lower (6.25
percent) or 1-percentage-point higher (8.25 percent) than the current rate:
PERA Fund Municipal General Division
1% Decrease
(6.25%)
Current
Discount Rate
(7.25%)
1% Increase
(8.25%)
Town's proportionate share of the
net pension liability 10,313,810$ 6,815,829$ 3,909,932$
PERA Fund Municipal Police Division
1% Decrease
(6.25%)
Current
Discount Rate
(7.25%)
1% Increase
(8.25%)
Town's proportionate share of the
net pension liability 5,390,654$ 3,593,046$ 2,122,263$
75
TOWN OF TAOS
Notes to the Financial Statements
June 30, 2023
NOTE 11. Pension Plan – Public Employee Retirement Association of NM (continued)
PERA Fund Municipal Fire Division
1% Decrease
(6.25%)
Current
Discount Rate
(7.25%)
1% Increase
(8.25%)
Town's proportionate share of the
net pension liability 4,147,046$ 3,148,396$ 2,328,365$
Pension plan fiduciary net position. Detailed information about the pension plan’s fiduciary net position
is available in separately issued PERA’S financial reports.
Payables to the pension plan. At June 30, 2023, the Town had payables to the plan in the amount of
$71,021.
NOTE 12. Post‐Employment Benefits – State Retiree Health Care Plan
General Information about the OPEB
Plan description. Employees of the Town are provided with OPEB through the Retiree Health Care
Fund (the Fund)—a cost-sharing multiple-employer defined benefit OPEB plan administered by the
New Mexico Retiree Health Care Authority (NMRHCA). NMRHCA was formed February 13, 1990, under
the New Mexico Retiree Health Care Act (the Act) of New Mexico Statutes Annotated, as amended
(NMSA 1978), to administer the Fund under Section 10-7C-1-19 NMSA 1978. The Fund was created to
provide comprehensive group health insurance coverage for individuals (and their spouses, dependents
and surviving spouses) who have retired or will retire from public service in New Mexico.
NMRHCA is an independent agency of the State of New Mexico. The funds administered by NMRHCA are
considered part of the State of New Mexico financial reporting entity and are OPEB trust funds of the
State of New Mexico. NMRHCA’s financial information is included with the financial presentation of the
State of New Mexico.
Benefits provided. The Fund is a multiple employer cost sharing defined benefit healthcare plan that
provides eligible retirees (including terminated employees who have accumulated benefits but are not
yet receiving them), their spouses, dependents and surviving spouses and dependents with health
insurance and prescription drug benefits consisting of a plan, or optional plans of benefits, that can be
contributions to the Fund and by co-payments or out-of-pocket payments of eligible retirees.
76
TOWN OF TAOS
Notes to the Financial Statements
June 30, 2023
NOTE 12. Post‐Employment Benefits – State Retiree Health Care Plan (continued)
Employees covered by benefit terms – At June 30, 2022, the Fund’s measurement date, the following
employees were covered by the benefit terms:
Plan membership
Current retirees and surviving spouses 53,092
Inactive and eligible for deferred benefit 11,759
Current active members 92,520
157,371
Active membership
State general 18,691
State police and corrections 1,919
Municipal general 20,357
Municipal police 1,573
Municipal fire 756
Educational Retirement Board 49,224
92,520
Contributions – Employer and employee contributions to the Fund total 3% for non-enhanced
retirement plans and 3.75% of enhanced retirement plans of each participating employee’s salary as
required by Section 10-7C-15 NMSA 1978. The contributions are established by statute and are not based
on an actuarial calculation. All employer and employee contributions are non-refundable under any
circumstance, including termination of the employer’s participation in the Fund. Contributions to the
Fund from the Town were $129,615 for the year ended June 30, 2023.
77
TOWN OF TAOS
Notes to the Financial Statements
June 30, 2023
NOTE 12. Post‐Employment Benefits – State Retiree Health Care Plan (continued)
OPEB Liabilities, OPEB Expense, and Deferred Outflows of Resources and Deferred Inflows of
Resources Related to OPEB
At June 30, 2023, the Town reported a liability of $2,669,946 for its proportionate share of the net
OPEB liability. The net OPEB liability was measured as of June 30, 2022, and the total OPEB liability
used to calculate the net OPEB liability was determined by an actuarial valuation as of that date. The
Town’s proportion of the net OPEB liability was based on actual contributions provided to the Fund
for the year ending June 30, 2022. At June 30, 2023, the Town’s proportion was 0.11550 percent.
For the year ended June 30, 2023, the Town recognized OPEB income of $675,288. At June 30, 2023 the
Town reported deferred outflows of resources and deferred inflows of resources related to OPEB from
the following sources:
Deferred Outflow Deferred Inflow
of Resources of Resources
Differences between expected and actual experience 44,409$ 395,743$
Net difference between expected and actual
investments on OPEB plan investments 36,816 -
Change of assumptions 569,703 1,979,200
Changes in proportion 453,046 663,302
Town's contributions subsequent to the measurement date 129,615 -
Total 1,233,589$ 3,038,245$
Deferred outflows of resources totaling $129,615 represent Town contributions to the Fund made
subsequent to the measurement date and will be recognized as a reduction of net OPEB liability in the
year ending June 30, 2023. Other amounts reported as deferred outflows of resources and deferred
inflows of resources will be recognized in OPEB expense as follows:
Year ended June 30:
2024 (661,965)$
2025 (514,552)
2026 (310,576)
2027 (322,180)
2028 (124,998)
Total (1,934,271)$
78
TOWN OF TAOS
Notes to the Financial Statements
June 30, 2023
NOTE 12. Post‐Employment Benefits – State Retiree Health Care Plan (continued)
Actuarial assumptions. The total OPEB liability as of June 30, 2021 was determined by an actuarial
valuation using the following actuarial assumptions:
Validation date June 30, 2021
Actuarial cost method Entry age normal, level percent of pay, calculated
on individual employee basis
Asset valuation method Market value of assets
Actuarial assumptions:
Inflation 2.30% for ERB; 2.50% for PERA members
Projected payroll increases 3.25% to 13.00%, based on years of service,
including inflation
Investment rate of return 7.00%, net of OPEB plan investment expense
and margin for adverse deviation
including inflation
Health care cost trend rate 8% graded down to 4.5% over 14 years
for Non-Medicare medical plan costs and 7.5% graded
down to 4.5% over 12 years for Medicare medical plan
costs
Mortality ERB members: 2020 GRS Southwest Region Teacher
Mortality Table, set back one year (and scaled at 95%
for males). Generational mortality improvements in
accordance with the Ultimate MP scales are projected
from the year 2020. PERA members: Headcount-
Weighted RP-2014 Blue Collar Annuitant Mortality, set
forward one year for females, projected generationally
with Scale MP-2017 times 60%.
Rate of Return. The long-term expected rate of return on OPEB plan investments was determined using
a building-block method in which the expected future real rates of return (net of investment fees and
inflation) are developed for each major asset class. These returns 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, adding expected inflation and subtracting expected investment expenses
and a risk margin. The target allocation and projected arithmetic real rates of return for each major
asset class, after deducting inflation, but before investment expenses, used in the derivation of the
long-term expected investment rate of return assumptions.
79
TOWN OF TAOS
Notes to the Financial Statements
June 30, 2023
NOTE 12. Post‐Employment Benefits – State Retiree Health Care Plan (continued)
The best estimates for the long-term expected rate of return is summarized as follows:
Asset Class
Long-Term
Rate of Return
U.S. core fixed income 0.4%
U.S. equity - large cap 6.6%
Non U.S. - emerging markets 9.2%
Non U.S. - developed equities 7.3%
Private equity 10.6%
Credit and structured finance 3.1%
Real estate 3.7%
Absolute return 2.5%
U.S. equity - small/mid cap 6.6%
Discount Rate. The discount rate used to measure the Fund’s total OPEB liability is 3.62% as of June
30, 2022. The projection of cash flows used to determine the discount rate assumed that employer
contributions will be made at rates proportional to the actuary determined contribution rates. For this
purpose, employer contributions that are intended to fund benefits of current plan members and their
beneficiaries are included. Projected employer contributions that are intended to fund the service costs
for future plan members and their beneficiaries are not included. Based on those assumptions, the
Fund's fiduciary net position was projected to be available to make all projected future benefit
payments for current plan members through the fiscal year ending June 30, 2052. Thus, the 7.00%
discount rate was used to calculate the net OPEB liability through 2052. The index rate for 20-year, tax
exempt general obligation municipal bonds with an average rating of AA/Aa or higher was used
beyond 2052, resulting in a blended discount rate of 3.62%.
Sensitivity of the net OPEB liability to changes in the discount rate and healthcare cost trend rates.
The following presents the net OPEB liability of the Town, as well as what the Tpwn’s net OPEB liability
would be if it were calculated using a discount rate that is 1-percentage-point lower (2.62percent) or
1-percentage-point higher (4.62 percent) than the current discount rate:
Current Discount
1% Decrease Rate 1% Increase
(4.42%) (5.42%) (6.42%)
Town's proportionate share of the
net OPEB liability 3,322,582$ $ 2,669,946 2,149,598$
The following presents the net OPEB liability of the Town, as well as what the Town’s net OPEB liability
would be if it were calculated using healthcare cost trend rates that are 1-percentage-point lower or
1-percentage-point higher than the current healthcare cost trend rates:
1% Decrease Rate 1% Increase
Town's proportionate share of the
net OPEB liability 2,139,321$ $ 2,669,946 3,122,176$
Trend Rate Sensitivity Analysis
OPEB plan fiduciary net position. Detailed information about the OPEB plan’s fiduciary net position is
available in NMRHCA’s audited financial statements for the year ended June 30, 2023. 80
TOWN OF TAOS
Notes to the Financial Statements
June 30, 2023
NOTE 12. Post‐Employment Benefits – State Retiree Health Care Plan (continued)
Payable Changes in the Net OPEB Liability. At June 30, 2023, the Town reported a payable of $7,721
for outstanding contributions due to NMRHCA for the year ended June 30, 2023.
NOTE 13. 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 $626,879
as of June 30, 2023, which is based on 24 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, 2023. 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 post closure care. The Town is in compliance with these
requirements, and at June 30, 2023 cash of $1,521,414 and investments of $75,400 is part of the pooled
funds held by the Town and is presented as restricted cash on the statement of net position.
NOTE 14. Joint Powers Agreements
Salazar Property and Sports Facilities
Participants Town of Taos, Taos Municipal Schools Board of Education
Responsible party Taos Municipal School District
Description Develop, manage and maintain a multi-purpose athletic
facility on the Salazar property
Term of agreement 40 years from 2009, with option to renew
Amount of project $2,140,012 for Phase I; unknown for other phases
Town contributions $ 180,756 Principal/ Interest- Debt Payment
Audit responsibility Town of Taos
81
TOWN OF TAOS
Notes to the Financial Statements
June 30, 2023
NOTE 14. Joint Powers Agreements (continued)
Public Restroom Facility
Participants
Responsible party
Description
Term of agreement
Amount of project
Town contributions
Audit responsibility
Enhanced 911‐Response System
Participants
Responsible party
Description
Term of agreement
Amount of project
Town contributions
Audit responsibility
Taos Regional Landfill Board
Participants
Responsible party
Description
Term of agreement
Amount of project
Town contributions
Audit responsibility
Town of Taos, County of Taos
County of Taos
Designing, constructing, operating, and maintaining a public
restroom facility
November 20, 2007 to January 31, 2028
Indeterminate
Indeterminate
County of Taos
Town of Taos, County of Taos, Town of Questa, Village of Taos
Ski Valley, Taos Pueblo
County of Taos
Provide an answering point for information regarding needed
emergency services
October 19, 2017 until terminated
Estimated $973,873 per year
None in Fiscal year 2022-2023
County of Taos
Town of Taos, County of Taos, Village of Questa, Village of Red
River, Village of Taos Ski Valley
Town of Taos
Establish the Taos Regional Landfill Board
Until terminated
Dependent on landfill expenses
none to date
Town of Taos
82
TOWN OF TAOS
Notes to the Financial Statements
June 30, 2023
NOTE 15. 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 Insurer’s Fund. In the opinion of management, the outcome of
these matters will not have a material effect on the financial position of the Town.
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 16. Construction and Other Significant Commitments
The Town has committed to pay for several construction contracts that were not completed at June 30,
2023 in the amount of $7,439,771 as follows:
Project Description
Contract Amount
Remaining
Video Surveillance System - Various Town Buildings 483,732$ APIC Solutions Inc
Kit Carson Park Stage Concrete Work 20,259 A & S Construction
Taos Regional Ariport - Terminal, Design, Element 1,2 &3 674,154 Armstrong Consultants, Inc
Taos Regional Ariport - Taxiway A 60,338 Armstrong Consultants, Inc
Taos Regional Ariport - Taxiway A 78,181 K. Barnett & Sons
Taos Regional Ariport - Airport Hangar 18,791 Armstrong Consultants, Inc
Taos Regional Ariport - Airport Hangar 454,072 B & R Construction
Taos Regional Ariport - On-Site Utilities 30,830 Daniel B. Stephens
Taos Regional Ariport - Southwest Transmission Line 56,022 Daniel B. Stephens
Taos Regional Ariport - Airport Apron 282,887 Armstrong Consultants, Inc
Ranchitos Road Improvements 133,331 WH Pacific, Inc
Continuation of Implementation of Abeyta Settlement Agreement 3,311,419 Daniel B. Stephens
Abeyta Settlement Agreement - Rio Pueblo Well Construction 380,891 Stewart Brothers Drilling Company
Town Well 4 & 5 Improvement 56,701 File Construction, LLC
Town Well 4 & 5 Improvement 45,494 Miller Engineers
Construction of Cell 4B - Taos Landfill 1,352,671 CF Padilla, LLC
7,439,771$
Contractor
83
TOWN OF TAOS
Notes to the Financial Statements
June 30, 2023
NOTE 17.
NOTE 18.
NOTE 19.
NOTE 20.
Subsequent Events
The date to which events occurring after June 30, 2023, the date of the most recent statement of net
position, have been evaluated for possible adjustment to the financial statements or disclosures is
December 7, 2023 which is the date on which the financial statements were issued. No issues were
noted for disclosure at December 7, 2023.
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 specific flows of intergovernmental revenues based on modifications to Federal and State laws and
Federal and State Appropriations.
Restricted Net Position
The government-wide statement of net position reports $22,136,971 of restricted net position, all of
which is restricted by enabling legislation. For descriptions of the related enabling legislation for
special revenue, debt service, and capital projects funds see pages 49 and 108-109.
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 $304,600 and $102,205,
respectively. Principal and interest paid for the current year and total customer net revenues were
$40,231 and $4,402,336 respectively.
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 $727,000 and $286,387
respectively. Principal and interest paid for the current year and total customer net revenues were
$78,258 and $4,402,336 , 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 84
TOWN OF TAOS
Notes to the Financial Statements
June 30, 2023
NOTE 20. Utility Revenues Pledged (continued)
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 have been paid during June 30, 2023. Principal and interest paid for the
current year and total customer net revenues were $331,133 and $4,402,336, respectively.
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 $40,176 with no interest due. Principal for the current year and total customer net
revenues were $6,640 and $4,402,336, 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 $185,428with no interest due. Principal for the current year and total customer net
revenues were $30,646 and $4,402,336, 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
January 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 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 $600,000 with no interest due. Principal for the
current year and total customer net revenues were $60,000 and $4,402,336 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 remaining to be paid
on the loan is $99,956 with no interest due. Principal for the current year and total customer net
revenues were $9,847 and $4,402,336, respectively.
85
TOWN OF TAOS
Notes to the Financial Statements
June 30, 2023
NOTE 20. Utility Revenues Pledged (continued)
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 $379,717 and $4,272, respectively. Principal and interest paid for the current year and total
customer net revenues were $187,618 and $1,801,883, respectively.
The Town of Taos has pledged future revenues from the Taos Wastewater project, net of operation and
maintenance expenses, to repay $810,662 in NMED Solar Array Project, issued in 2016. The loans are
payable solely from utility customer net revenues and are payable through July 2031. 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 and interest
remaining to be paid on the bonds is $794,449 and $851, respectively. Principal and interest paid for the
current year and total customer net revenues were $20,574and $4,402,336, respectively.
NOTE 21. Subsequent Accounting Pronouncements
In June 2023, GASB Statement No. 100 Accounting Changes and Error Corrections-an amendment of
GASB Statement No. 62, was issued. Effective Date: The provisions of this Statement are effective for
fiscal years beginning after June 15, 2023. The Town does not expect this pronouncement to have a
material effect on the financial statements.
In June 2023, GASB Statement No. 101 Compensated Absences, was issued. Effective Date: The
provisions of this Statement are effective for fiscal years beginning after December 15, 2023. The Town
does not expect this pronouncement to have a material effect on the financial statements.
86
R EQUIRED SUPPLEMENTARY INFORMATION
87
2023
Measurement
Date (As of and
for the year
ended
June 30, 2022)
2022
Measurement
Date (As of and
for the year
ended
June 30, 2021)
2021
Measurement
Date (As of and
for the year
ended
June 30, 2020)
0.3843% 0.3611% 0.3895%
6,815,829$ 4,068,350$ 7,876,575$
3,740,630$ 3,404,290$ 3,676,714$
182.21% 119.51% 214.23%
69.35%77.25%66.36%
Last 10 Fiscal Years*
Public Employees Retirement Association (PERA) Plan
of PERA Fund Municipal General Division
Town of Taos's covered payroll
Town of Taos's proportionate share of the net pension
liability
Town of Taos's proportion of the net pension liability
Schedule of the Town's Proportionate Share of the Net Pension Liability
TOWN OF TAOS
Town of Taos's proportionate share of the net pension
liability as a percentage
Plan fiduciary net position as a percentage of the total
pension liability
* Governmental Accounting Standards Board Statement 68 requires ten years of historical
information be presented; however, until a full 10-year trend is compiled, the statement only
requires presentation of the information is available. Complete information for Town of Taos is not
available prior to fiscal year 2015, the year the statement requirements became effective.
See independent auditors' report.
See notes to required supplementary information.88
Schedule A-1
Page 1 of 3
2020
Measurement
Date (As of and
for the year
ended
June 30, 2019)
2019
Measurement
Date (As of and
for the year
ended
June 30, 2018)
2018
Measurement
Date (As of and
for the year
ended
June 30, 2017)
2017
Measurement
Date (As of and
for the year
ended
June 30, 2016)
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)
0.4082% 0.3528% 0.4630% 0.4710% 0.5054% 0.5476%
7,066,348$ 5,624,937$ 6,362,011$ 7,524,994$ 5,152,991$ 4,271,868$
3,606,337$ 3,793,609$ 3,909,077$ 4,069,174$ 4,513,593$ 4,457,324$
195.94% 148.27% 162.75% 184.93% 114.17%95.84%
70.52%71.13%73.74%69.18%76.99%81.29%
See independent auditors' report.
See notes to required supplementary information.89
2023
Measurement
Date (As of and
for the year
ended
June 30, 2022)
2022
Measurement
Date (As of and
for the year
ended
June 30, 2021)
2021
Measurement
Date (As of and
for the year
ended
June 30, 2020)
0.4471%0.4064%0.4210%
3,593,046$ 2,101,501$ 3,615,841$
1,089,093$ 980,451$ 994,304$
69.35%77.25%66.36%
Last 10 Fiscal Years*
Public Employees Retirement Association (PERA) Plan
of PERA Fund Municipal Police Division
Schedule of the Town's Proportionate Share of the Net Pension Liability
TOWN OF TAOS
363.66%214.34%
* Governmental Accounting Standards Board Statement 68 requires ten years of historical
information be presented; however, until a full 10-year trend is compiled, the statement only
requires presentation of the information is available. Complete information for Town of Taos is not
available prior to fiscal year 2015, the year the statement requirements became effective.
Town of Taos's proportionate share of the net pension
liability as a percentage
Plan fiduciary net position as a percentage of the total
Town of Taos's covered payroll
Town of Taos's proportion of the net pension liability
Town of Taos's proportionate share of the net pension
liability
329.91%
See independent auditors' report.
See notes to required supplementary information.90
Schedule A-1
Page 2 of 3
2020
Measurement
Date (As of and
for the year
ended
June 30, 2019)
2019
Measurement
Date (As of and
for the year
ended
June 30, 2018)
2018
Measurement
Date (As of and
for the year
ended
June 30, 2017)
2017
Measurement
Date (As of and
for the year
ended
June 30, 2016)
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)
0.5039%0.5100%0.4874%0.4766%0.4844%0.4887%
3,722,153$ 3,479,752$ 2,707,827$ 3,516,497$ 2,329,267$ 1,593,109$
1,120,723$ 1,020,869$ 911,949$ 953,345$ 949,833$ 937,534$
70.52%71.13%73.74%69.18%76.99%81.29%
340.86%368.86%332.12%169.93%245.23%296.93%
See independent auditors' report.
See notes to required supplementary information.91
2023
Measurement
Date (As of and
for the year
ended
June 30, 2022)
2022
Measurement
Date (As of and
for the year
ended
June 30, 2021)
2021
Measurement
Date (As of and
for the year
ended
June 30, 2020)
0.4146% 0.2963% 0.2787%
3,148,396$ 1,798,688$ 2,108,014$
649,380$ 423,601$ 389,109$
69.35%77.25%66.36%
Last 10 Fiscal Years*
Public Employees Retirement Association (PERA) Plan
of PERA Fund Municipal Fire Division
Schedule of the Town's Proportionate Share of the Net Pension Liability
541.75%424.62%
* Governmental Accounting Standards Board Statement 68 requires ten years of historical
information be presented; however, until a full 10-year trend is compiled, the statement only
requires presentation of the information is available. Complete information for Town of Taos is not
available prior to fiscal year 2015, the year the statement requirements became effective.
Town of Taos's proportionate share of the net pension
liability as a percentage
Plan fiduciary net position as a percentage of the total
pension liability
Town of Taos's covered payroll
Town of Taos's proportionate share of the net pension
liability
484.83%
Town of Taos's proportion of the net pension liability
TOWN OF TAOS
See independent auditors' report.
See notes to required supplementary information.92
Schedule A-1
Page 3 of 3
2020
Measurement
Date (As of and
for the year
ended
June 30, 2019)
2019
Measurement
Date (As of and
for the year
ended
June 30, 2018)
2018
Measurement
Date (As of and
for the year
ended
June 30, 2017)
2017
Measurement
Date (As of and
for the year
ended
June 30, 2016)
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)
0.2377% 0.2497% 0.2753% 0.2784% 0.2769% 0.2567%
1,633,562$ 1,598,237$ 1,575,114$ 1,857,210$ 1,429,131$ 1,071,464$
316,260$ 317,344$ 321,046$ 336,796$ 315,617$ 285,100$
70.52%71.13%73.74%69.18%76.99%81.29%
375.82%490.62%516.53%551.43%503.63%452.81%
See independent auditors' report.
See notes to required supplementary information.93
As of and for the
year ended
June 30, 2023
As of and for the
year ended
June 30, 2022
As of and for the
year ended
June 30, 2021
431,584$ 357,570$ 325,110$
(431,584) (357,570) (325,110)
-$-$-$
4,190,139$ 3,740,630$ 3,404,290$
10.30%9.56%9.55%
* Governmental Accounting Standards Board Statement 68 requires ten years of historical
information be presented; however, until a full 10-year trend is compiled, the statement only
requires presentation of the information is available. Complete information for Town of Taos is not
available prior to fiscal year 2015, the year the statement requirements became effective.
Last 10 Fiscal Years*
PERA Fund Municipal General Division
Public Employees Retirement Association (PERA) Plan
Schedule of the Town's Contributions
TOWN OF TAOS
Contributions as a percentage of covered payroll
Town of Taos’s covered payroll
Contribution deficiency (excess)
Contributions in relation to the contractually required
contribution
Contractually required contribution
See independent auditors' report.
See notes to required supplementary information.94
Schedule A-2
Page 1 of 3
As of and for the
year ended
June 30, 2020
As of and for the
year ended
June 30, 2019
As of and for the
year ended
June 30, 2018
As of and for the
year ended
June 30, 2017
As of and for the
year ended
June 30, 2016
As of and for the
year ended
June 30, 2015
350,621$ 344,405$ 362,290$ 373,065$ 386,572$ 428,791$
(350,621) (344,405) (362,290) (373,065) (386,572) (428,791)
-$ -$ -$ -$ -$ -$
3,676,714$ 3,606,337$ 3,793,609$ 3,909,077$ 4,069,174$ 4,513,593$
9.54%9.55%9.55%9.54%9.50%9.50%
See independent auditors' report.
See notes to required supplementary information.95
As of and for the
year ended
June 30, 2023
As of and for the
year ended
June 30, 2022
As of and for the
year ended
June 30, 2021
234,593$ 205,839$ 185,304$
(234,593) (205,839) (185,304)
-$-$-$
1,193,852$ 1,089,093$ 980,451$
19.65%18.90%18.90%
Last 10 Fiscal Years*
* Governmental Accounting Standards Board Statement 68 requires ten years of historical
information be presented; however, until a full 10-year trend is compiled, the statement only
requires presentation of the information is available. Complete information for Town of Taos is not
available prior to fiscal year 2015, the year the statement requirements became effective.
TOWN OF TAOS
Public Employees Retirement Association (PERA) Plan
Schedule of the Town's Contributions
Contributions as a percentage of covered payroll
Town of Taos’s covered payroll
Contribution deficiency (excess)
Contributions in relation to the contractually required
contribution
Contractually required contribution
PERA Fund Municipal Police Division
See independent auditors' report.
See notes to required supplementary information.96
Schedule A-2
Page 2 of 3
As of and for the
year ended
June 30, 2020
As of and for the
year ended
June 30, 2019
As of and for the
year ended
June 30, 2018
As of and for the
year ended
June 30, 2017
As of and for the
year ended
June 30, 2016
As of and for the
year ended
June 30, 2015
187,924$ 211,817$ 192,944$ 161,795$ 169,123$ 168,500$
(187,924) (211,817) (192,944) (161,795) (169,123) (168,500)
-$ -$ -$ -$ -$ -$
994,304$ 1,120,723$ 1,020,869$ 911,949$ 953,345$ 949,833$
18.90%18.90%18.90%17.74%17.74%17.74%
See independent auditors' report.
See notes to required supplementary information.97
As of and for the
year ended
June 30, 2023
As of and for the
year ended
June 30, 2022
As of and for the
year ended
June 30, 2021
145,502$ 140,591$ 91,710$
(145,502) (140,591) (91,710)
-$ -$ -$
656,893$ 649,380$ 423,601$
22.15%21.65%21.65%
Public Employees Retirement Association (PERA) Plan
Schedule of the Town's Contributions
TOWN OF TAOS
* Governmental Accounting Standards Board Statement 68 requires ten years of historical
information be presented; however, until a full 10-year trend is compiled, the statement only
requires presentation of the information is available. Complete information for Town of Taos is not
available prior to fiscal year 2015, the year the statement requirements became effective.
Last 10 Fiscal Years*
PERA Fund Municipal Fire Division
Contributions as a percentage of covered payroll
Town of Taos’s covered payroll
Contribution deficiency (excess)
Contributions in relation to the contractually required
contribution
Contractually required contribution
See independent auditors' report.
See notes to required supplementary information.98
Schedule A-2
Page 3 of 3
As of and for the
year ended
June 30, 2020
As of and for the
year ended
June 30, 2019
As of and for the
year ended
June 30, 2018
As of and for the
year ended
June 30, 2017
As of and for the
year ended
June 30, 2016
As of and for the
year ended
June 30, 2015
84,242$ 68,470$ 68,705$ 69,503$72,748$68,173$
(84,242) (68,470) (68,705) (69,503)(72,748)(68,173)
-$-$-$-$-$-$
389,109$ 316,260$ 317,344$ 321,046$ 336,796$ 315,617$
21.65%21.65%21.65%21.65%21.60%21.60%
See independent auditors' report.
See notes to required supplementary information.99
PERA
Changes of benefit terms: The PERA and COLA and retirement eligibility benefits changes in recent years are
described in Note 1 of PERA’s ACFR. http://www.nmpera.org/financial-overview/.
Assumptions: The Public Employee Retirement Association of New Mexico Annual Actuarial Valuations as of
June 2022 report is available at http://www.nmpera.org/finanical-overview/retirement-fund-valuation-reports/.
For the Year Ended June 30, 2023
Notes to Required Supplementary Information
TOWN OF TAOS
See independent auditors' report.
See notes to required supplementary information.100
Page Left Intentionally Blank
101
2023
Measurement
Date (As of and
for the Year
Ended June 30,
2022)
2022
Measurement
Date (As of and
for the Year
Ended June 30,
2021)
2021
Measurement
Date (As of and
for the Year
Ended June 30,
2020)
2020
Measurement
Date (As of and
for the Year
Ended June 30,
2019)
0.11550% 0.10379% 0.11055% 0.12328%
2,669,946$ 3,415,054$ 4,641,894$ 3,997,218$
6,023,917 4,753,407 5,003,183 5,111,405
44.32%71.84%92.78%78.20%
33.33%25.39%16.50%18.92%
* This schedule is presented to illustrate the requirement to show information for 10 years. However, until a full 10-year
trend is compiled, the Town will present information for available years.
Town of Taos's proportion of the net
OPEB liability (asset)
Town of Taos's covered payroll
Town of Taos's proportionate share
of the net OPEB liability as a
percentage of its covered payroll
Plan fiduciary net position as a
percentage of the total OPEB liability
Last 10 Fiscal Years*
Retiree Health Care OPEB Plan
Schedule of Proportionate Share of the Net OPEB Liability
TOWN OF TAOS
Town of Taos's proportionate share
of the net OPEB liability (asset)
See independent auditors' report.
See notes to required supplementary information.102
Schedule B-1
2019
Measurement
Date (As of and
for the Year
Ended June 30,
2018)
2018
Measurement
Date (As of and
for the Year
Ended June 30,
2017)
0.13080% 0.12709%
5,687,649$ 5,759,303$
5,250,703 5,294,121
108.32%108.79%
13.14%11.34%
See independent auditors' report.
See notes to required supplementary information.103
TOWN OF TAOS Schedule B-2
As of and
for the
Year
Ended
June 30,
2023
As of and
for the
Year
Ended
June 30,
2022
As of and
for the
Year
Ended
June 30,
2021
As of and
for the
Year
Ended
June 30,
2020
As of and
for the
Year
Ended
June 30,
2019
As of and
for the
Year
Ended
June 30,
2018
Contractually required contribution 129,615$ 132,068$ 101,786$ 106,685$ 109,126$ 111,708$
129,615 132,068 101,786 106,685 109,126 111,708
Contribution deficiency (excess)-$ -$ -$ -$ -$ -$
6,040,884 6,023,917 4,753,407 5,003,183 5,111,405 5,250,703
2.15%2.19%2.14%2.13%2.13%2.13%
Notes to Required Supplementary Information
RHC Plan
In the total OPEB liability measured as of June 30, 2022, changes in assumptions include adjustments resulting from a
decrease in the discount rate from 3.62% to 5.42%.
* This schedule is presented to illustrate the requirement to show information for 10 years. However, until a full 10-year
trend is compiled, the Town will present information for available years.
Schedule of Contributions
Retiree Health Care OPEB Plan
Last 10 Fiscal Years*
Contributions in relation to the
contractually required contribution
Town of Taos's covered payroll
Contribution as a percentage of covered
See independent auditors' report.
See notes to required supplementary information.104
Page Left Intentionally Blank
105
Page Left Intentionally Blank
106
S UPPLEMENTARY INFORMATION
107
TOWN OF TAOS
Nonmajor Fund Descriptions
June 30, 2023
Special Revenue Funds
Cannabis Excise Tax –To account for the monies received pursuant to the Cannabis Regulation Act.Authority is
Town Council resolution
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.
Lodgers’Tax Special Revenue Fund –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).
Monies 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 enforcement protection fund was created to account for revenues received
pursuant to the law enforcement protection fund (Section 29-13-7, NMSA 1978). Amounts 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 enforcement
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 enforcement 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.
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.
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. After
required debt service transfers have been made, the remaining income of this fund is restricted for capital
improvement purposes. NMSA 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.
108
TOWN OF TAOS
Nonmajor Fund Descriptions
June 30, 2023
Special Revenue Funds (continued)
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.
American Rescue Plan – To account for monies received to aid for state and local governments affected by the
COVID-19 public health emergency as well make strategic investments in long-lived assets, rebuild reserves to
enhance financial stability, and cover temporary operating shortfalls until economic conditions and operations
normalize.
Emergency Management Fund – To account for funds received from the Calf Canyon Fire for the rental of the Civic
Plaza buildings, Taos Regional Airport terminal building room, runways, taxiways, intersections, and all access points. For
the training and education of employee personnel during emergencies, respond to and minimize the impacts or disruption of
services during natural disasters.
Capital Maintenance Operating Fund – This fund was created to receive additional amounts that are paid for
onetime costs by the Town of Taos. Authority is Town Council resolution.
Grants Match Fund – the fund was created to properly identify grant match commitments made by the town for grants
requiring a match.
Law Enforcement Recruitment/Retention – This new funding was awarded by the State of NM through the Department
of Finance to fund the cost of recruiting and retention of Law Enforcement Officers; grant funds to be disbursed to entities
over a three (3) year period.
Capital Projects Fund
Facilities Improvements – This fund was created to receive transfers from other funds for the purpose of improving
facilities of the Town. 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.
Special Events Enterprise – This fund was created to account for the monies for the special events the Town puts on
throughout the year to generate revenue. 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.
Debt Service Funds
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.109
Cannabis Excise
Tax Fire Protection
Lodgers' Tax
Special Revenue
Fund
Assets
Cash and cash equivalents 175,734$ 565,865$ 1,895,560$
Investments - 23,258 -
Receivables:
Taxes receivable - - 153,977
Due from other governments - - 30,000
Total assets 175,734$ 589,123$ 2,079,537$
Liabilities
Accounts payable -$ 1,286$ 114,023$
Accrued payroll expenses - - 5,800
Deposits held in trust for others - - -
Total liabilities - 1,286 119,823
Fund balances
Spendable
Restricted for:
General government 175,734 - -
Public safety - 587,837 -
Culture and recreation - - 1,959,714
Transportation and roads - - -
Capital improvements - - -
Debt service - - -
Committed to:
General government - - -
Public safety - - -
Culture and recreation - - -
Transportation and roads - - -
Capital improvements - - -
Total fund balances 175,734 587,837 1,959,714
Total liabilities and fund balances 175,734$ 589,123$ 2,079,537$
June 30, 2023
Combining Balance Sheet
Nonmajor Governmental Funds
TOWN OF TAOS
Special Revenue
See independent auditors' report.110
Statement A-1
Page 1 of 3
Local
Governmental
Correction
Law Enforcement
Protection Civic Center
Public
Transportation Community Grants
31,401$ 9,153$ 3,103$ 888,956$ 410,021$
- - 2,000 210,000 -
- - - - -
- - - - 185,344
31,401$ 9,153$ 5,103$ 1,098,956$ 595,365$
-$ -$ -$ -$ 36,539$
- - - - -
- - 5,103 - -
- - 5,103 - 36,539
- - - - -
31,401 9,153 - - -
- - - - -
- - - - -
- - - - -
- - - - -
- - - - 558,826
- - - - -
- - - - -
- - - 1,098,956 -
- - - - -
31,401 9,153 - 1,098,956 558,826
31,401$ 9,153$ 5,103$ 1,098,956$ 595,365$
Special Revenue
See independent auditors' report.111
Municipal Road
Gasoline Tax
1/4 Cent Municipal
Gross Receipts Tax Historical District
Assets
Cash and cash equivalents -$ 616,402$ 21,964$
Investments - - -
Receivables:
Taxes receivable 10,523 219,662 -
Due from other governments - - -
Total assets 10,523$ 836,064$ 21,964$
Liabilities
Accounts payable -$ -$ 181$
Accrued payroll expenses - - -
Deposits held in trust for others - - -
Total liabilities - - 181
Fund balances
Spendable
Restricted for:
General government - 836,064 -
Public safety - - -
Culture and recreation - - -
Transportation and roads 10,523 - -
Capital improvements - - -
Debt service - - -
Committed to:
General government - - -
Public safety - - -
Culture and recreation - - 21,783
Transportation and roads - - -
Capital improvements - - -
Total fund balances 10,523 836,064 21,783
Total liabilities and fund balances 10,523$ 836,064$ 21,964$
Special Revenue
June 30, 2023
Combining Balance Sheet
Nonmajor Governmental Funds
TOWN OF TAOS
See independent auditors' report.112
Statement A-1
Page 2 of 3
Confidential
Informant
American Rescue
Plan
Emergency
Management Fund
Capital
Maintenance
Operating Fund Grants Match Fund
9,828$ 906,477$ 12,034$ 753,359$ 500,000$
- - - 190,000 -
- - - - -
- - - - -
9,828$ 906,477$ 12,034$ 943,359$ 500,000$
-$ 234$ -$ 2,900$ -$
- 2,174 - - -
- - - - -
- 2,408 - 2,900 -
- 904,069 - - 500,000
- - 12,034 - -
- - - - -
- - - - -
- - - - -
- - - - -
- - - 940,459 -
9,828 - - - -
- - - - -
- - - - -
- - - - -
9,828 904,069 12,034 940,459 500,000
9,828$ 906,477$ 12,034$ 943,359$ 500,000$
Special Revenue
See independent auditors' report.113
Special Revenue
Law Enforcement
Recruitment/
Retention
Facilities
Improvements
Vehicle
Replacement
Assets
Cash and cash equivalents 3,518$ 1,480,752$ 357,298$
Investments - - -
Receivables:
Taxes receivable - - -
Due from other governments - - -
Total assets 3,518$ 1,480,752$ 357,298$
Liabilities
Accounts payable -$ 60,466$ -$
Accrued payroll expenses - - -
Deposits held in trust for others - - -
Total liabilities - 60,466 -
Fund balances
Spendable
Restricted for:
General government - - -
Public safety - - -
Culture and recreation - - -
Transportation and roads - - -
Capital improvements - - -
Debt service - - -
Committed to:
General government 3,518 - -
Public safety - - -
Culture and recreation - - -
Transportation and roads - - -
Capital improvements - 1,420,286 357,298
Total fund balances 3,518 1,420,286 357,298
Total liabilities and fund balances 3,518$ 1,480,752$ 357,298$
June 30, 2023
Combining Balance Sheet
Nonmajor Governmental Funds
TOWN OF TAOS
Capital Projects
See independent auditors' report.114
Statement A-1
Page 3 of 3
Debt Service
Special Events
Enterprise
1994 Gross
Receipts Tax
Revenue Bond
Acquisition
1999 Gasoline Tax
Acquisition Debt
Service Fund
2008 Gross
Receipts Tax
Revenue Bond
Retirement
Total Nonmajor
Governmental
Funds
303,406$ 132,820$ 1,740,041$ 3,661$ 10,821,353$
- 430,373 101,424 - 957,055
- - - - 384,162
132,226 - 113,869 - 461,439
435,632$ 563,193$ 1,955,334$ 3,661$ 12,624,009$
-$ -$ -$ -$ 215,629$
- - - - 7,974
- - - - 5,103
- - - - 228,706
- - - - 2,415,867
- - - - 640,425
- - - - 1,959,714
- - - - 10,523
435,632 563,193 1,955,334 - 2,954,159
- - - 3,661 3,661
- - - - 1,502,803
- - - - 9,828
- - - - 21,783
- - - - 1,098,956
- - - - 1,777,584
435,632 563,193 1,955,334 3,661 12,395,303
435,632$ 563,193$ 1,955,334$ 3,661$ 12,624,009$
Capital Projects
See independent auditors' report.115
Cannabis Excise
Tax Fire Protection
Lodgers' Tax
Special Revenue
Fund
Revenues
Taxes:
Gross receipts -$ -$ -$
Gasoline and motor vehicle - - -
Lodgers tax - - 1,633,345
Cannabis excise tax 162,539 - -
Intergovernmental:
Federal operating grants - - -
State operating grants - 398,215 30,000
State capital grants - - -
Charges for services - - 596
Licenses and fees - - -
Investment income - - -
Miscellaneous - - -
Total revenues 162,539 398,215 1,663,941
Expenditures
Current:
General government - - -
Public safety - 134,243 -
Culture and recreation - - 1,084,298
Capital outlay - 28,376 -
Debt service:
Principal - - -
Interest - - -
Total expenditures - 162,619 1,084,298
Excess (deficiency) of revenues over
expenditures 162,539 235,596 579,643
Other financing sources (uses)
Transfers in - - 1,247,370
Transfers (out)- - (1,559,212)
Total other financing sources (uses)- - (311,842)
Net change in fund balances 162,539 235,596 267,801
Fund balances - beginning of year 13,195 352,241 1,691,913
Fund balances - end of year 175,734$ 587,837$ 1,959,714$
TOWN OF TAOS
Special Revenue
For the Year Ended June 30, 2023
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances
Nonmajor Governmental Funds
See independent auditors' report.116
Statement A-2
Page 1 of 3
Local
Governmental
Correction
Law Enforcement
Protection Civic Center
Public
Transportation Community Grants
-$ -$ -$ -$ -$
- - - - -
- - - - -
- - - - -
- - - - 326,839
- 66,000 - - 643,444
- - - - -
7,399 - - 825,000 -
10,103 - - - -
- - - - -
- - - - -
17,502 66,000 - 825,000 970,283
- - - - 686,253
144,791 56,847 - - -
- - - 1,064,705 -
- - - - 344,345
- - - - -
- - - - -
144,791 56,847 - 1,064,705 1,030,598
(127,289) 9,153 - (239,705) (60,315)
90,000 - - 311,842 465,000
- - - - -
90,000 - - 311,842 465,000
(37,289) 9,153 - 72,137 404,685
68,690 - - 1,026,819 154,141
31,401$ 9,153$ -$ 1,098,956$ 558,826$
Special Revenue
See independent auditors' report.117
Municipal Road
Gasoline Tax
1/4 Cent Municipal
Gross Receipts Tax Historical District
Revenues
Taxes:
Gross receipts -$ 1,343,994$ -$
Gasoline and motor vehicle 75,389 - -
Lodgers tax - - -
Cannabis excise tax - - -
Intergovernmental:
Federal operating grants - - -
State operating grants - - -
State capital grants - - -
Charges for services - - -
Licenses and fees - - 57,458
Investment income - - -
Miscellaneous - - -
Total revenues 75,389 1,343,994 57,458
Expenditures
Current:
General government - 8,360 -
Public safety - - -
Culture and recreation - - 72,308
Capital outlay - - -
Debt service:
Principal - - -
Interest - - -
Total expenditures - 8,360 72,308
Excess (deficiency) of revenues over
expenditures 75,389 1,335,634 (14,850)
Other financing sources (uses)
Transfers in - - -
Transfers (out)(77,506) (1,103,569) -
Total other financing sources (uses)(77,506) (1,103,569) -
Net change in fund balances (2,117) 232,065 (14,850)
Fund balances - beginning of year 12,640 603,999 36,633
Fund balances - end of year 10,523$ 836,064$ 21,783$
For the Year Ended June 30, 2023
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances
Nonmajor Governmental Funds
TOWN OF TAOS
Special Revenue
See independent auditors' report.118
Statement A-2
Page 2 of 3
Confidential
Informant
American Rescue
Plan
Emergency
Management Fund
Capital
Maintenance
Operating Fund Grants Match Fund
-$ -$ -$ -$ -$
- - - - -
- - - - -
- - - - -
- 731,317 - - -
- - - - -
- - - - -
- - - - -
- - - - -
- - - - -
- - 49,205 - -
- 731,317 49,205 - -
- 266,520 37,171 180,428 -
- - - - -
- - - - -
- 13,467 - 33,043 -
- - - - -
- - - - -
- 279,987 37,171 213,471 -
- 451,330 12,034 (213,471) -
- - - 542,500 500,000
- - - - -
- - - 542,500 500,000
- 451,330 12,034 329,029 500,000
9,828 452,739 - 611,430 -
9,828$ 904,069$ 12,034$ 940,459$ 500,000$
Special Revenue
See independent auditors' report.119
Special Revenue
Law Enforcement
Recruitment/
Retention
Facilities
Improvements
Vehicle
Replacement
Revenues
Taxes:
Gross receipts -$ -$ -$
Gasoline and motor vehicle - - -
Lodgers tax - - -
Cannabis excise tax - - -
Intergovernmental:
Federal operating grants - - -
State operating grants 112,500 - -
State capital grants - - -
Charges for services - - -
Licenses and fees - - -
Investment income - - -
Miscellaneous - - -
Total revenues 112,500 - -
Expenditures
Current:
General government 108,982 - -
Public safety - 171,359 -
Culture and recreation - - -
Capital outlay - 437,112 513,459
Debt service:
Principal - - -
Interest - - -
Total expenditures 108,982 608,471 513,459
Excess (deficiency) of revenues over
expenditures 3,518 (608,471) (513,459)
Other financing sources (uses)
Transfers in - - -
Transfers (out)- - -
Total other financing sources (uses)- - -
Net change in fund balances 3,518 (608,471) (513,459)
Fund balances - beginning of year - 2,028,757 870,757
Fund balances - end of year 3,518$ 1,420,286$ 357,298$
Capital Projects
For the Year Ended June 30, 2023
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances
Nonmajor Governmental Funds
TOWN OF TAOS
See independent auditors' report.120
Statement A-2
Page 3 of 3
Debt Service
Special Events
Enterprise
1994 Gross
Receipts Tax
Revenue Bond
Acquisition
1999 Gasoline Tax
Acquisition Debt
Service Fund
2008 Gross
Receipts Tax
Revenue Bond
Retirement
Total Nonmajor
Governmental
Funds
-$ -$ -$ -$ 1,343,994$
- - - - 75,389
- - - - 1,633,345
- - - - 162,539
- - - 1,058,156
- - - - 1,250,159
- - 168,940 - 168,940
185,744 7,800 - - 1,026,539
- - - - 67,561
- 16,067 3,683 - 19,750
- - 29,385 - 78,590
185,744 23,867 202,008 - 6,884,962
246,200 - - - 1,533,914
- - - - 507,240
- - - - 2,221,311
- - 1,478,188 - 2,847,990
- - - 465,000 465,000
- - - 82,695 82,695
246,200 - 1,478,188 547,695 7,658,150
(60,456) 23,867 (1,276,180) (547,695) (773,188)
102,878 - 1,590,185 551,000 5,400,775
- - - - (2,740,287)
102,878 - 1,590,185 551,000 2,660,488
42,422 23,867 314,005 3,305 1,887,300
393,210 539,326 1,641,329 356 10,508,003
435,632$ 563,193$ 1,955,334$ 3,661$ 12,395,303$
Capital Projects
See independent auditors' report.121
Page Left Intentionally Blank
122
S UPPORTING SCHEDULES
123
Account Bank Deposits Outstanding Book
Bank Name/Account Name Type Balance in Transit Checks Balance
US Bank
Clearing Account *Checking 1,151,080$ -$ 1,151,077$ 3$
Judicial Bond Fund Municipal Court Checking 7,627 - - 7,627
Water & Sewer System Income Fund *Checking 9,606,129 125,580 4,785 9,726,924
Total US Bank 10,764,836 125,580 1,155,862 9,734,554
Centinel Bank
General Fund *Checking 21,048,525 25,742 27,637 21,046,630
1994 GRT Revenue Bond Acquisition Fund *Checking 127,469 5,351 - 132,820
Water Wastewater Improvements Fund *Checking 1,337,448 - 110,541 1,226,907
ACH Transfer Account Checking 129,215 259 129,321 153
Payroll Clearing *Checking 69,293 - 69,269 24
Total Centinel Bank 22,711,950 31,352 336,768 22,406,534
Bank balance of deposits 33,476,786$ 156,932$ 1,492,630$ 32,141,088$
New Mexico Finance Authority‐Investment
Taos 49 - Debt Service Funds 13,612$ -$ -$ 13,612$
Taos 49 - Debt Service Reserve Funds Funds 149,414 - - 149,414
Total New Mexico Finance Authority 163,026 - - 163,026
* Interest bearing Bank Accounts
TOWN OF TAOS
Schedule of Deposit and Investment Accounts
June 30, 2023
See independent auditors' report.124
Schedule I
Account Bank Deposits Outstanding Book
Bank Name/Account Name Type Balance in Transit Checks Balance
Moreton Capital Markets
US Governmental Securities Investment 3,000,000$ -$ -$ 3,000,000$
Total Moreton Capital Markets 3,000,000 - - 3,000,000
Total investments 3,163,026$ -$ -$ 3,163,026$
Total 36,639,812$ 156,932$ 1,492,630$ 35,304,114
Add: New Mexico State Treasurer Local Government Investment Pool 4,149,964
Add: petty cash 1,578
Total deposits and investments 39,455,656$
Deposits and investments per financial statements:
Cash and cash equivalents - Exhibit A-1 30,481,361$
Investments - Exhibit A-1 7,014,561
Restricted cash and cash equivalents - Exhibit A-1 1,786,857
Restricted investments - Exhibit A-1 75,400
Fiduciary funds cash - Exhibit E-1 37,477
Investments - Exhibit E-1 60,000
Total cash, cash equivalents, and investments 39,455,656$
See independent auditors' report.125
Schedule II
Fair Market
Name of Description of CUSIP Value at
Depository Pledged Collateral Maturity Number June 30, 2023
US Bank
FHLB N/A LOC NO. 567852 11,000,000$
Total US Bank 11,000,000
The location of the safekeeper of the above securities is 221 East Fourth Street, Cincinnati, OH 45202
Centinel Bank
Espanola SD 2.125%09/01/25 29662RBA5 150,000$
Alamogordo NM Muni 3.00%08/01/25 11464KQ6 250,000
Dona Ana Branch Community 3.00%08/01/24 257578EG5 300,000
Torrance ETC County 2.00%09/01/24 891400PF4 310,000
Jal NM Public Schools 2.00%10/01/24 470143AJ7 300,000
Clovis NM Municipal Sch Dist 2.25%08/01/32 189414PN9 325,000
Ruidoso SD 3.00%08/01/29 781338LT3 265,000
Ruidoso SD 2.50%08/01/31 781338KR8 300,000
Bernalillo NM Sch Dist 08/01/30 085279VG9 375,000
Taos NM Sch Dist 4.00%09/01/28 87601UBY8 215,000
FHMS K091 A2 3.51%03/25/29 3137FLN91 568,404
FHMS K091 A2 3.51%03/25/29 3137FLN91 284,202
Silver City NM Consol SC 4.00%08/01/34 827513GCO 200,000
Clovis NM Muni 3.00%08/01/34 189414QE8 200,000
Taos NM Sch Dist 5.15%09/01/27 876014GE5 505,000
Bernalillo NM Sch Dist 2.00%08/01/27 085279UD7 275,000
Uni of New Mexico 1.882%06/01/32 9146924S4 500,000
FNA 2021-M11 A2 1.459%03/25/31 3136BF4D2 1,584,785
Bernalillo County, NM 2.000%08/15/35 0852752F1 500,000
Uni of New Mexico 1.782%06/01/31 9146924R6 500,000
FHMS K086 A2 3.859%11/25/28 3137FKSH0 965,502
FHMS KG05 A2 2.000%01/25/31 3137FFXL6 838,296
Belen NM Consol Sch Distr 3.000%08/01/25 077581PT7 500,000
Alamogordo NM Muni 2.25%08/01/28 011464LT9 525,000
GNR 2016-169VA 2.000%11/16/34 38379U3L8 646,344
NEW MEXICO FINANCE AUTH REV 5.000%06/01/34 64711PHB9 1,756,892
FHMS K089 A2 3.920%09/25/28 3137FJKE8 1,000,000
FHMS K089 A2 3.563%01/25/29 3137FL6P4 2,000,000
FNR 2022-11 BV 3.000%07/25/33 3136BMES3 2,000,000
FNR 2022-40 AV 2.000%12/25/33 31368NPS9 1,000,000
FNR 2022-31 GV 2.000%03/25/52 31368NCY0 2,000,000
FHMS KF94-AL 4.969%11/25/30 3137F84A8 2,000,000
Total Centinel Bank 23,139,425
The location of the safekeeper of the above securities is Independent Bankers Bank, Dallas, TX
Total Pledged Collateral 34,139,425$
TOWN OF TAOS
Schedule of Collateral Pledged by Depository
For Public Funds
June 30, 2023
See independent auditors' report.126
C OMPLIANCE SECTION
127
CORDOVA CPAs LLC
CERTIFIED PUBLIC ACCOUNTANTS | BUSINESS ADVISORS cordovacpas.com
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
Joseph M. Maestas, P.E.
New Mexico State Auditor
U.S. Office of Management and Budget
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 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 for the General Fund of the Town of Taos (the Town), as of and for the year ended June 30, 2023,
and the related notes to the financial statements, which collectively comprise Town’s basic financial
statements, and have issued our report thereon dated December 7, 2023.
Report on 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 a reasonable possibility that a material misstatement of the Town’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. 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.
128
Report on 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 are required to be reported under
Government Auditing Standards.
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 Town’s internal control or
on 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.
Cordova CPAs LLC
Albuquerque, NM
December 7, 2023
129
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130
F EDERAL FINANCIAL ASSISTANCE
131
CORDOVA CPAs LLC
CERTIFIED PUBLIC ACCOUNTANTS | BUSINESS ADVISORS cordovacpas.com
REPORT ON COMPLIANCE FOR EACH MAJOR FEDERAL PROGRAM AND ON INTERNAL CONTROL OVER
COMPLIANCE REQUIRED BY THE UNIFORM GUIDANCE
INDEPENDENT AUDITORS’ REPORT
Joseph M. Maestas, P.E.
New Mexico State Auditor
U.S. Office of Management and Budget
Town Council
Town of Taos
Taos, New Mexico
Report on Compliance for Each Major Federal Program
Opinion on Each Major Federal Program
We have audited Town of Taos’s compliance with the types of compliance requirements identified as subject
to audit in the OMB Compliance Supplement that could have a direct and material effect on each of Town of
Taos’s major federal programs for the year ended June 30, 2023. Town of Taos’s major federal programs are
identified in the summary of auditor’s results section of the accompanying schedule of findings and
questioned costs.
In our opinion, Town of Taos complied, in all material respects, with the types of compliance requirements
referred to above that could have a direct and material effect on each of its major federal programs for the
year ended June 30, 2023.
Basis for Opinion on Each Major Federal Program
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). Our responsibilities under those standards and the
Uniform Guidance are further described in the Auditor’s Responsibilities for the Audit of Compliance section
of our report.
We are required to be independent of Town of Taos and to meet our other ethical responsibilities, in
accordance with relevant ethical requirements relating to our audit. We believe that the audit evidence we
have obtained is sufficient and appropriate to provide a basis for our opinion on compliance for each major
federal program. Our audit does not provide a legal determination of Town of Taos’s compliance with the
compliance requirements referred to above.
132
Responsibilities of Management for Compliance
Management is responsible for compliance with the requirements referred to above and for the design,
implementation, and maintenance of effective internal control over compliance with the requirements of
laws, statutes, regulations, rules, and provisions of contracts or grant agreements applicable to Town of
Taos’s federal programs.
Auditor’s Responsibilities for the Audit of Compliance
Our objectives are to obtain reasonable assurance about whether material noncompliance with the
compliance requirements referred to above occurred, whether due to fraud or error, and express an opinion
on Town of Taos’s compliance based on our audit. Reasonable assurance is a high level of assurance but is not
absolute assurance and therefore is not a guarantee that an audit conducted in accordance with generally
accepted auditing standards, Government Auditing Standards, and the Uniform Guidance will always detect
material noncompliance when it exists. The risk of not detecting material noncompliance resulting from fraud
is higher than for that resulting from error, as fraud may involve collusion, forgery, intentional omissions,
misrepresentations, or the override of internal control. Noncompliance with the compliance requirements
referred to above is considered material if there is a substantial likelihood that, individually or in the
aggregate, it would influence the judgment made by a reasonable user of the report on compliance about
Town of Taos’s compliance with the requirements of each major federal program as a whole.
In performing an audit in accordance with generally accepted auditing standards, Government Auditing
Standards, and the Uniform Guidance, we:
Exercise professional judgment and maintain professional skepticism throughout the audit.
Identify and assess the risks of material noncompliance, whether due to fraud or error, and design
and perform audit procedures responsive to those risks. Such procedures include examining, on a
test basis, evidence regarding Town if Taos’s compliance with the compliance requirements referred
to above and performing such other procedures as we considered necessary in the circumstances.
Obtain an understanding of Town if Taos’s internal control over compliance relevant to the audit in
order to design audit procedures that are appropriate in the circumstances and to test and report on
internal control over compliance in accordance with the Uniform Guidance, but not for the purpose of
expressing an opinion on the effectiveness of Town if Taos’s internal control over compliance.
Accordingly, no such opinion is expressed.
We are required to communicate with those charged with governance regarding, among other matters, the
planned scope and timing of the audit and any significant deficiencies and material weaknesses in internal
control over compliance that we identified during the audit.
Report on Internal Control over Compliance
Our consideration of internal control over compliance was for the limited purpose described in the Auditor’s
Responsibilities for the Audit of Compliance section above and was not designed to identify all deficiencies in
internal control over compliance that might be material weaknesses or significant deficiencies in internal
control over compliance and therefore, material weaknesses or significant deficiencies may exist that were
not identified. We did not identify any deficiencies in internal control over compliance that we consider to be
material weaknesses. However, as discussed below, we did identify certain deficiencies in internal control
over compliance that we consider to be significant deficiencies.
133
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 a
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. We consider the
deficiency in internal control over compliance described in the accompanying schedule of findings and
questioned costs as item 2023-001, to be a significant deficiency.
Our audit was not designed for the purpose of expressing an opinion on the effectiveness of internal control
over compliance. Accordingly, no such opinion is expressed.
Government Auditing Standards requires the auditor to perform limited procedures on the Town of Taos’s
response to the internal control over compliance findings identified in our audit described in the
accompanying schedule of findings and questioned costs. The Town of Taos’s response was not subjected to
the other auditing procedures applied in the audit of compliance and, accordingly, we express no opinion on
the response.
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 the Uniform
Guidance. Accordingly, this report is not suitable for any other purpose..
Cordova CPAs LLC
Albuquerque, NM
December 7, 2023
134
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135
Federal
Assistance
Listing
Number
Federal
Expenditures
Funds
Provided to
Subrecipients
Noncash
Assistance
U.S. Department of Agriculture
Rural Business Development Grant 10.351 290,148$ -$ -$
Total U.S. Department of Agriculture 290,148 - -
U.S. Department of Housing and Urban Development
Passed through State of New Mexico, Department of Finance & Administration
Community Development Block Grants 14.228 * 472,123
Water Systems Improvements 14.228 * 588,024 - -
Total U.S. Department of Housing and Urban Development 1,060,147 - -
U.S. Department of the Interior ‐ Bureau of Reclamation
Implementation of the Taos Pueblo Indian Water rights Settlement 15.565 * 2,491,913 - -
Total U.S Department of the Interior ‐ Bureau of Reclamation 2,491,913 - -
U.S. Department of Justice
Passed through State of New Mexico, Department of Public Safety
Taos County Juvenile Accountability Block Grant 16.523 50,760 - -
Total U.S. Department of Justice 50,760 - -
U.S. Department of Transportation
Passed through NM Department of Transportation
Federal Aviation Administration (FAA) Airport Improvement Grant
Taxiway-A PER, Phase I Design 20.106 2,670,290 - -
Total U.S. Department of Transportation 2,670,290 - -
U.S. Department of the Treasury
Passed through the New Mexico Department of Finance & Administration
Coronavirus State and Local Fiscal Recovery Fund 21.027 * 279,987 - -
Total U.S Department of Health and Human Services 279,987 - -
Total Federal Financial Assistance 6,843,245$ -$ -$
* Denotes Major Federal Financial Assistance Program
TOWN OF TAOS
Schedule of Expenditures of Federal Awards
For the Year Ended June 30, 2023
Federal Grantor or Pass‐Through
Grantor / Program Title
See independent auditors' report.
See accompanying notes to schedule of expenditures of federal awards.136
Schedule IV
Notes to Schedule of Expenditures of Federal Awards
1.Basis of Presentation
2.Loans
3.10% de minimus Indirect Cost Rate
4.Federally Funded Insurance
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). Therefore, some
amounts presented in this schedule may differ from amounts presented in, or used in the preparation of the financial
statements.
The Town has no federally funded insurance.
The Town did not elect to use the allowed 10% indirect cost rate.
The Town did not expend federal awards related to loans or loan guarantees during the year.
See independent auditors' report.137
TOWN OF TAOS Schedule IV
Schedule of Findings and Questioned Costs Page 1 of 2
June 30, 2023
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?None Noted
c.Noncompliance material to the financial statements noted?None Noted
Federal Awards:
1.Internal control over major programs:
a.Material weaknesses identified?None noted
b.Significant deficiencies identified not considered to be material weaknesses?Yes
2.Type of auditors’ report issued on compliance for major programs Unmodified
3.Any audit findings disclosed that are required to be reported in accordance
with 2 CFR section 200.516(a)? Yes
4.Identification of major programs:
Assistance Listing
Number Federal Program
14.228 Community Developement Block Grant
14.228 Water Systems Improvements
15.565 Implementation of the Taos Pueblo Indian Water Rights Settlement
21.027 Coronavirus State and Local Fiscal Recovery Fund
5.Dollar threshold used to distinguish between type A and type B programs:$750,000
6.Auditee qualified as low-risk auditee?No
138
TOWN OF TAOS Schedule IV
Schedule of Findings and Questioned Costs Page 2 of 2
June 30, 2023
Section II – Financial Statement Findings
None noted
Section III – Federal Award Findings
2023-001 — Reporting– (Significant Deficiency)
Federal Program Information:
Funding Agencies: U.S. Department of Housing and Urban Development
Titles: Community Development Block Grant
Assistance Listing Number: 14.228
Award Year: July 1, 2022 to June 30, 2023
Condition: During our audit we noted that two of the four quarterly progress reports were not submitted by
the due date.
Criteria: According to 42 USC 12708(a), 24 CFR 91.520, and 24 CFR 570.491, the Progress Reports are
required to be submitted before 90 days after the close of the Town’s reporting period.
Effect: Two of the Town’s progress reports were submitted late.
Questioned Costs: None
Cause: The Town had turnover in the position who enters the information into HUD’s reporting system and
this resulted in the first two quarterly progress reports being submitted late. The last two quarterly progress
reports were submitted on time for the fiscal year.
Auditors’ Recommendation: We recommend that the Town cross-train another employee to know how to
submit these federal progress reports so if there is another vacancy in this or any other position that submits
reports at the Town, will not result in other reports being submitted late.
Management’s Response: The Town of Taos will continue to focus on the professional development of all employees and will cross-train employees on the completion and submission of federal progress reports. The Finance Department has filled the key position with a Grant Administrator who will be the responsible person for this task and will immediately ensure all future progress reports are submitted in a timely manner. While the Town did complete the progress reports and submitted the reports to the granting agency upon discovery, we understand it is our fiduciary responsibility to ensure all financial reports are timely.
Section IV – Section 12-6-5 NMSA 1978 Findings
None noted
Section V – Prior Year Audit Findings
2022‐001 (2021-001) — Consumable Inventory (Significant Deficiency) (Resolved)
139
Town of Taos
Audit Finding Corrective Action Plan
December 11, 2023
2023-001 — Reporting– (Significant Deficiency) – The Town of Town had turnover in
the position who enters the information into HUD’s reporting system and this resulted in the
first two quarterly progress reports being submitted late. The last two quarterly progress
reports were submitted on time for the fiscal year.
The Town of Taos will continue to focus on the professional development of all employees and
will cross train employees on the completion and submission of federal progress reports. The
Finance Department has filled the key position with a Grant Administrator who will be the
responsible person for this task and will immediately ensure all future progress reports are
submitted timely. While the Town did complete the progress reports and submitted the reports
to the granting agency upon discovery, we understand it is our fiduciary responsibility to ensure
all financial reports are timely.
Taos Municipal Building
400 Camino de la Placita
Taos, New Mexico 87571
(575) 751-2000
Fax (575) 751-2026
Visit us on our Website at:
www.taosgov.com
Pascualito M. Maestas, Mayor
Councilmembers:
Nathaniel Evans
Darien D. Fernandez
Marietta S. Fambro
Corilia Ortega
Andrew T. Gonzales, Town Manager
140
TOWN OF TAOS
Other Disclosures
June 30, 2023
Exit Conference
An exit conference was held on December 11, 2023. In attendance were the following:
Representing the Town of Taos:
Nathaniel Evans – Town Councilor
Pascualito Maestas – Mayor
Andrew Gonzales – Town Manager
Lupe E. Martinez – Finance Director
Josephine Fresquez – Deputy Finance Director
Charlotte Jeantete, CPA – Audit Committee Member
Representing Cordova CPAs LLC:
Robert Gonzales, CPA- Principal
Auditor Prepared Financial Statements
Cordova CPAs LLC prepared the GAAP-basis financial statements and footnotes of 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.
141