HomeMy WebLinkAbout2024 Audit ReportTOWN OF TAOS
FINANCIAL STATEMENTS
FOR THE YEAR ENDED
JUNE 30, 2024
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I NTRODUCTORY SECTION
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TOWN OF TAOS
June 30, 2024
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 34
American Rescue Plan C-2 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 46-87
Statement/
Schedule Page
REQUIRED SUPPLEMENTARY INFORMATION
Schedule of Proportionate Share of the Net Pension Liability A-1 90-95
Schedule of the Town's Contributions - Public Employees Retirement Association Plan A-2 96-101
Notes to Required Supplementary Information 102
Schedule of Proportionate Share of the Net OPEB Liability B-1 104-105
Schedule of the Town's Contributions - Retiree Health Care OPEB Plan B-2 106-107
SUPPLEMENTARY INFORMATION
Nonmajor Fund Descriptions 110-113
Combining and Individual Fund Statements and Schedules:
Combining Balance Sheet - Nonmajor Governmental Funds A-1 114-121
Combining Statement of Revenues, Expenditures, and Changes in
Fund Balances - Nonmajor Governmental Funds A-2 122-129
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TOWN OF TAOS
June 30, 2024
Table of Contents
Statement/
Schedule Page
SUPPORTING SCHEDULES
Schedule of Deposit and Investment Accounts I 132-133
Schedule of Collateral Pledged by Depository For Public Funds II 134-135
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 138-139
FEDERAL FINANCIAL ASSISTANCE
Report on Compliance for Each Major Federal Program and on Internal Control
Over Compliance Required by the Uniform Guidance 142-144
Schedule of Expenditures of Federal Awards III 146-147
Schedule of Findings and Questioned Costs IV 149-150
OTHER DISCLOSURES 151
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TOWN OF TAOS
Official Roster
June 30, 2024
Town Council
Name Title
Pascualito Maestas Mayor
Genevieve Oswald Town Councilor
Darien D. Fernandez Town Councilor
Marietta Fambro Town Councilor
Corilia Ortega Town Councilor
Administration
Lupe Martinez
Jonathan Montoya
Francella Garcia
Richard Chavez
Christopher Stachura
Town Manager
Deputy 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. CFE
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 comparisons of the
General Fund and major special revenue fund of Town of Taos (the Town), as of and for the year ended June
30, 2024, 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 comparisons of the General Fund and major
special revenue fund of Town of Taos, as of June 30, 2024, 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 90 through 107 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, 2024
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, 2024
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STATE OF NEW MEXICO
Town of Taos
Management’s Discussion and Analysis
June 30, 2024
We are pleased to present the Town of Taos’ financial statements for the fiscal year ended June 30, 2024. 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 $117,598,984 (net position). Of
this amount, $7,783,947 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. Included in the
available cash balances are approximately $14,263,071 for ongoing capital projects and $8,013,848 for special revenue
projects.
The Town’s total net position increased by $6,889,031 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, 2024, the Town’s governmental activities reported a combined ending net position balance of $82,685,813.
Of this total, $14,273,038 is restricted for debt service and capital projects.
As illustrated in the data below, you will note the favorable increase the Town of Taos has continued to experience during the last few
years. According to the financial information, Total Assets increased by 6.92%, the Town’s Net Position increased by 5.36% and the
Operating Income posted in the General Fund increased 40.02%, which amounts to $6,422,385 over prior year. Total Revenues
decreased by 3.29% and Total Expenditures increased by 14.14% over the prior year.
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STATE OF NEW MEXICO
Town of Taos
Management’s Discussion and Analysis
June 30, 2024
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, 2024
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 46-87
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 110-129 of this report.
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 $117,598,984 at the close of the
current fiscal year. An increase of approximately 3.55% over the prior year.
The significant portion of the Town of Taos’ net position represents the Town’s investment of $85,631,548 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.
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STATE OF NEW MEXICO
Town of Taos
Management’s Discussion and Analysis
June 30, 2024
A portion of the Town of Taos’ governmental restricted net position of $22,286,886 (26.95%) 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, ($2,471,413) 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 ($5,188,070). 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 $6,889,031 during the fiscal year. This increase is primarily the result of Gross Receipts Taxes
and Capital Grants as noted below in the Governmental Activities.
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STATE OF NEW MEXICO
Town of Taos
Management’s Discussion and Analysis
June 30, 2024
Governmental Activities. Governmental Activities increased the Town of Taos’ net position to $6,524,556 primarily as the result of an
increase in Gross Receipts Tax and Capital Grants. Whereas, Business-type Activities decreased to $364,475 for a combined total of
$6,889,031 net position at fiscal year-end. It is worth noting, increases in general government expenditures added to the overall net
position of the Town during the year.
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3,352,401
3,968,725
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STATE OF NEW MEXICO
Town of Taos
Management’s Discussion and Analysis
June 30, 2024
The Town is pleased to report that tax revenues account for 83.09% of governmental revenues, or $25,367,722. 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
$6,183,079 from prior fiscal year. Respectively, $6,256,880 in gross receipts taxes, $148,892 in cannabis excise tax and $61,207 in
property taxes due to the increase in assessed property values within the town limits.
The General fund received the majority of the Town’s program revenue, accounting for $11,134,902 or 46.96% 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 $1,045,197 or 3.46% of total governmental revenues. These
charges are for fees, fines and forfeitures as well as licenses and permits. Overall charges for services decreased by $808,423 from
prior year.
Business-type Activities. As referenced earlier, Business-type Activities increased the Town’s net position by $364,475, primarily as
the result of increase in charges for services and decrease in capital grants.
The Town’s direct charges to users of business-type services made up $6,579,857 or 85.26% of total business-type revenues. These
charges are for water and sewer services, water and sewer connection fees, landfill tipping fees and solid waste services. These direct
charges for service increased by $354,019 from the previous year due to an increase in new homeowner and second homeowners
relocating to the town.
FINANCIAL ANALYSIS OF THE TOWN’S FUNDS
The Town of Taos uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements.
Governmental Funds. The focus of the Town of Taos’ governmental funds is to provide information on near-term inflows, outflows,
and balances of spendable resources. Such information is useful in assessing the Town of Taos’ financing requirements. In particular,
unassigned fund balance may serve as a useful measure of a government’s net resources available for spending at the end of the fiscal
year. Types of Governmental funds reported by the Town include the General Fund, Special Revenue Funds, Debt Service Funds and
Capital Projects Funds.
Revenues for governmental functions overall totaled approximately $30,235,608 in the financial period ending June 30, 2024, which
represents an increase of $1,023,060 from the financial report ending June 30, 2023. This is largely due to the increase in gross 17
STATE OF NEW MEXICO
Town of Taos
Management’s Discussion and Analysis
June 30, 2024
receipts taxes and the distribution of cannabis excise tax. Expenditures for governmental functions, totaling $23,711,052 was an
increase of approximately $2,711,152 from the fiscal year ended June 30, 2023. In the financial period ending June 30, 2024,
revenues for governmental functions exceeded expenditures by approximately $6,524,556.
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 $10,255,360. The total net position for the
enterprise funds increased $820,244 as compared to prior year financial period. This performance was reflective of steadiness in
charges for services despite an increase 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, 2024.
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, 2024 of
$9,311,399 an increase of $5,028,645 over the comparable figure from the prior year of $4,282,754. 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 current 19% vacancy rate, we have created, finalized and implemented phase I of a multi-year comprehensive Pay &
Classification Plan which received unanimous and full support of the governing body.
As compared to the prior year, the General Fund revenue increased by 45.38% or approximately $5,862,535. Notable increases were
in Gross Receipts Taxes. The prior year reflected $12,918,772 versus the current financial period reflecting $18,781,307. Including in
Misc. Revenue is the investment income, which earned a favorable $828,345.
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STATE OF NEW MEXICO
Town of Taos
Management’s Discussion and Analysis
June 30, 2024
The following table examines the summary budget performance of the General Fund for the financial period ending June 30, 2024.
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 $3,234,177 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.
Capital Assets. The Town of Taos’ capital assets for its governmental and business-type activities as of June 30, 2024 amount to
$91,165,444 (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 financial period increased
$735,693 for governmental activities and increased $541,612 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 continued dedication to purchasing/replacing of equipment/vehicles. We continue to have many active engineering contracts
for several future capital projects that are reflected on the significant commitment list included in the financial statements. The
deletion noted was the building and grounds formerly known as the Mary D. Medina Building. The additions to capital assets were as
follows:
$840,345 for acquiring the Filemon Sanchez Park; $167,547 for improvements to Kit Carson and Disc Golf Park; $1,278,763 19
STATE OF NEW MEXICO
Town of Taos
Management’s Discussion and Analysis
June 30, 2024
for the street resurfacing and infrastructure improvements; $891,329 in equipment & machinery and vehicle upgrades made
throughout the year; $1,842,440 in land improvements and a compactor for the Taos Regional Landfill.
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 $7,288,381. The Town’s outstanding debt increased from prior year by $1,041,575 due to the new RUS Loan. Upon review of the
compensated absences, Governmental Activities decreased slightly by $53,297 from prior year while Business-type Activities
decreased $6,383 from prior year.
Based on the analysis completed by the Town’s financial advisor, the Town will comprehensively evaluate its bonding capacity for the
immediate needs of infrastructure and capital priorities. The Town has continued to experience significant costs due to deferred
maintenance. It is desired and directed by the governing body to explore the ability to bond for the rehabilitation construction of
newly acquired Filemon Sanchez Park to incorporate Eco Park and needed infrastructure needed at the Wastewater Treatment Plant.
Refer to Note 8 in the accompanying Notes to the Financial Statements for further information regarding long-term debt.
REQUESTS FOR INFORMATION
This financial report is designed to provide a general overview of the Town of Taos’ finances for all of those with an interest in the
government’s finances. Questions concerning any of the information provided in this report or requests for additional financial
information should be addressed to the Town of Taos, 400 Camino de la Placita, Taos, New Mexico, 87571, (575) 751-2002. 20
B ASIC
FINANCIAL STATEMENTS
21
TOWN OF TAOS
Statement of Net Position
June 30, 2024
Governmental
Activities
Business-type
Activities Total
Assets
Current assets
Cash and cash equivalents 27,395,954$ 11,076,402$ 38,472,356$
Investments 5,475,678 1,549,781 7,025,459
Receivables:
Property taxes 283,031 -283,031
Taxes receivable 3,693,389 85,715 3,779,104
Due from other governments 210,360 15,056 225,416
Customer receivable, net -602,720 602,720
Inventory 72,295 59,815 132,110
Internal balances 25,461 (25,461)-
Total current assets 37,156,168 13,364,028 50,520,196
Noncurrent assets
Restricted cash and cash equivalents -2,141,969 2,141,969
Restricted investments -124,500 124,500
Right of use assets, net 402,160 -402,160
Capital assets 175,643,199 67,116,889 242,760,088
Less: accumulated depreciation (111,742,859) (39,851,775) (151,594,634)
Total noncurrent assets 64,302,500 29,531,583 93,834,083
Total assets 101,458,668 42,895,611 144,354,279
Deferred outflows of resources
Deferred outflows- pension 3,766,992 430,237 4,197,229
Deferred outflows- OPEB 800,157 129,609 929,766
Total deferred outflows of resources 4,567,149 559,846 5,126,995
Total assets and deferred outflows of resources 106,025,817$ 43,455,457$ 149,481,274$
The accompanying notes are an integral part of these financial statements.2222
Exhibit A-1
Governmental
Activities
Business-type
Activities Total
Liabilities
Current liabilities
Accounts payable 1,470,249$ 383,085$ 1,853,334$
Accrued payroll 210,946 30,521 241,467
Accrued compensated absences 453,984 53,693 507,677
Unearned revenue 721,973 - 721,973
Deposits held in trust for others 5,103 369,866 374,969
Accrued interest 5,303 39,580 44,883
Current portion of leases payable 85,280 - 85,280
Current portion of bonds payable 505,000 408,918 913,918
Total current liabilities 3,457,838 1,285,663 4,743,501
Noncurrent liabilities
Accrued compensated absences 365,407 53,603 419,010
Bond premiums, net of accumulated
amortization of $62,970 7,872 - 7,872
Leases payable 334,714 - 334,714
Bonds payable 525,000 899,600 1,424,600
Loans payable - 3,195,388 3,195,388
Landfill closure and post-closure - 827,788 827,788
Net pension liability 14,276,416 1,633,373 15,909,789
Net OPEB liability 1,641,067 292,677 1,933,744
Total noncurrent liabilities 17,150,476 6,902,429 24,052,905
Total liabilities 20,608,314 8,188,092 28,796,406
Deferred inflows of resources
Deferred inflows- pension 386,617 37,217 423,834
Deferred inflows- OPEB 2,345,073 316,977 2,662,050
Total deferred inflows of resources 2,731,690 354,194 3,085,884
Net position
Net investment in capital assets 62,870,340 22,761,208 85,631,548
Restricted for:
Debt service 9,967 - 9,967
Capital projects 14,263,071 - 14,263,071
Special revenue projects 8,013,848 - 8,013,848
Landfill - 1,896,603 1,896,603
Unrestricted (deficit)(2,471,413) 10,255,360 7,783,947
Total net position 82,685,813 34,913,171 117,598,984
Total liabilities, deferred inflows of resources, and
net position 106,025,817$ 43,455,457$ 149,481,274$
The accompanying notes are an integral part of these financial statements.23
TOWN OF TAOS
Statement of Activities
For the Year Ended June 30, 2024
Functions/Programs
Expenses
Charges for
Services
Operating
Grants and
Contributions
Capital Grants
and
Contributions
Governmental Activities:
General government 11,134,902$ 1,044,706$ 577,511$ -$
Public safety 5,109,041 - 897,621 -
Public works 3,352,401 - - 565,994
Culture and recreation 3,968,725 491 - -
Interest 145,983 - - -
Total governmental activities 23,711,052 1,045,197 1,475,132 565,994
Business‐type Activities:
Water and Sewer 5,754,769 4,789,895 - 154,356
Solid Waste 36,421 483 - -
Taos Regional Landfill 1,562,111 1,789,479 - 22,400
Total business‐type activities 7,353,301 6,579,857 - 176,756
Total 31,064,353$ 7,625,054$ 1,475,132$ 742,750$
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
Donated property
Transfers
Total general revenues and transfers
Change in net position
Net position, beginning
Net position, restatement (Note 20)
Net position, as restated
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
(9,512,685)$ -$ (9,512,685)$
(4,211,420) - (4,211,420)
(2,786,407) - (2,786,407)
(3,968,234) - (3,968,234)
(145,983) - (145,983)
(20,624,729) - (20,624,729)
- (810,518) (810,518)
- (35,938) (35,938)
- 249,768 249,768
- (596,688) (596,688)
(20,624,729) (596,688) (21,221,417)
21,528,518 749,381 22,277,899
311,431 - 311,431
1,349,238 - 1,349,238
765,280 - 765,280
1,413,255 - 1,413,255
828,372 229,616 1,057,988
95,012 - 95,012
840,345 - 840,345
17,834 (17,834) -
27,149,285 961,163 28,110,448
6,524,556 364,475 6,889,031
77,065,326 34,548,696 111,614,022
(904,069)- (904,069)
76,161,257 34,548,696 110,709,953
82,685,813$ 34,913,171$ 117,598,984$
Net (Expense) Revenue and Changes in Net Position
The accompanying notes are an integral part of these financial statements.25
General Fund
American Rescue
Plan
Airport
Construction
Assets
Cash and cash equivalents 5,379,627$ 721,973$ 4,585,979$
Investments 4,939,850 - -
Receivables:
Property taxes 283,031 - -
Taxes receivable 3,079,832 - -
Due from other governments 8,042 - 37,854
Inventory 72,295 - -
Due from other funds 25,461 - -
Total assets 13,788,138$ 721,973$ 4,623,833$
Liabilities, deferred inflows
of resources, and fund balances
Liabilities
Accounts payable 233,310$ -$ 897,096$
Accrued payroll 202,923 - -
Unearned revenue - 721,973 -
Deposits held in trust for others - --
Total liabilities 436,233 721,973 897,096
Deferred inflows of resources
Unavailable revenue - property taxes 246,763 - -
Total deferred inflows of resources 246,763 - -
Fund balances
Nonspendable:
Inventory 72,295 - -
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 - - 3,726,737
Minimum fund balance 4,386,949 - -
Unassigned 8,645,898 - -
Total fund balances 13,105,142 - 3,726,737
Total liabilities, deferred inflows of
resources, and fund balances 13,788,138$ 721,973$ 4,623,833$
The accompanying notes are an integral part of these financial statements.
June 30, 2024
Governmental Funds
Balance Sheet
TOWN OF TAOS
26
Exhibit B-1
Page 1 of 2
Capital Projects
Other Governmental
Funds Total
4,076,474$ 12,631,901$ 27,395,954$
4,031 531,797 5,475,678
- - 283,031
187,557 426,000 3,693,389
- 164,464 210,360
- - 72,295
- - 25,461
4,268,062$ 13,754,162$ 37,156,168$
-$ 339,843$ 1,470,249$
- 8,023 210,946
- - 721,973
- 5,103 5,103
- 352,969 2,408,271
- - 246,763
- - 246,763
- - 72,295
- 2,068,841 2,068,841
- 951,836 951,836
- 1,356,094 1,356,094
- 17,120 17,120
- 2,592,604 2,592,604
- 6,031 6,031
- 2,323,662 2,323,662
- 29,828 29,828
- 78,115 78,115
- 594,363 594,363
4,268,062 3,382,699 11,377,498
- - 4,386,949
- - 8,645,898
4,268,062 13,401,193 34,501,134
4,268,062$ 13,754,162$ 37,156,168$
The accompanying notes are an integral part of these financial statements.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, 2024
Amounts reported for governmental activities in the Statement of
Net Position are different because:
Fund balances - total governmental funds 34,501,134$
Capital assets used in governmental activities are not financial resources
and, therefore, are not reported in the funds 63,900,340
Right of use assets, net of accumulated amortization, used in governmental activities
are not financial resources and, therefore, are not reported in the funds 402,160
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 246,763
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 3,766,992
Deferred outflows- OPEB 800,157
Deferred inflows- pension (386,617)
Deferred inflows- OPEB (2,345,073)
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 (1,030,000)
Leases payable (419,994)
Bond premiums (7,872)
Accrued interest (5,303)
Accrued compensated absences (819,391)
Net pension liability (14,276,416)
Net OPEB liability (1,641,067)
Net position of governmental activities 82,685,813$
The accompanying notes are an integral part of these financial statements.29
General Fund
American
Rescue Plan
Airport
Construction
Revenues
Taxes:
Property 1,343,734$ -$ -$
Gross receipts taxes 18,781,307 - -
Gasoline, franchise, and motor vehicle 659,979 - -
Lodger's tax - - -
Cannabis excise tax - - -
Intergovernmental:
Federal operating grants 15,646 - -
Federal capital grants - - 143,334
State operating grants 91,922 182,096 -
State capital grants - - 422,660
Charges for services 148,043 - -
Licenses and fees 596,110 - -
Investment income 799,442 - -
Miscellaneous 36,064 - -
Total revenues 22,472,247 182,096 565,994
Expenditures
Current:
General government 5,394,669 163,850 75,792
Public safety 3,951,919 - -
Public works 1,767,603 - -
Culture and recreation 2,046,657 - -
Capital outlay - 18,246 1,804,128
Debt service:
Principal - - -
Interest - - -
Total expenditures 13,160,848 182,096 1,879,920
Excess (deficiency) of revenues over expenditures 9,311,399 - (1,313,926)
Other financing sources (uses)
Transfers in 8,844,917 - 500,000
Transfers (out)(14,259,319) - -
Total other financing sources (uses)(5,414,402) - 500,000
Net change in fund balance 3,896,997 - (813,926)
Fund balance ‐ beginning of year 9,208,145 904,069 4,540,663
Fund balance ‐ restatement (Note 20)- (904,069) -
Fund balance as restated 9,208,145$ -$ 4,540,663$
Fund balance ‐ end of year 13,105,142$ -$ 3,726,737$
The accompanying notes are an integral part of these financial statements.
For the Year Ended June 30, 2024
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
-$ -$ 1,343,734$
1,179,333 1,567,878 21,528,518
- 105,301 765,280
- 1,413,255 1,413,255
- 311,431 311,431
- 71,265 86,911
- - 143,334
- 1,114,203 1,388,221
- - 422,660
- 221,489 369,532
- 79,555 675,665
209 28,721 828,372
- 58,948 95,012
1,179,542 4,972,046 29,371,925
- 758,657 6,392,968
- 1,057,695 5,009,614
439,883 796,976 3,004,462
- 1,922,665 3,969,322
91,555 2,952,002 4,865,931
- 485,000 485,000
- 63,630 63,630
531,438 8,036,625 23,790,927
648,104 (3,064,579) 5,580,998
260,000 7,727,609 17,332,526
(302,302) (2,753,071) (17,314,692)
(42,302) 4,974,538 17,834
605,802 1,909,959 5,598,832
3,662,260 11,491,234 29,806,371
- - (904,069)
3,662,260$ 11,491,234$ 28,902,302$
4,268,062$ 13,401,193$ 34,501,134$
The accompanying notes are an integral part of these financial statements.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 5,598,832$
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 4,865,931
Depreciation expense (4,970,583)
Donation of capital asset 840,345
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 (5,504)
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 850,125
Pension expense (1,815,905)
Town OPEB contributions subsequent to measurement date 129,735
OPEB income 599,465
Expenses in the Statement of Activities that do not require current financial
resources are not reported as expenditures in the funds:
(53,295) decrease in accrued compensated absences
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 3,936
Principal payments on leases 82,763
Principal payments on loans 485,000
Change in net position of governmental activities 6,524,556$
in Fund Balances of Governmental Funds to the Statement of Activities
For the Year Ended June 30, 2024
Reconciliation of the Statement of Revenues, Expenditures, and Changes
Governmental Funds
The accompanying notes are an integral part of these financial statements.33
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, 2024
Variances
Original Final Actual Final to Actual
Revenues
Taxes:
Property 1,186,723$ 1,346,112$ 1,343,734$ (2,378)$
Gross receipts 13,429,720 17,989,693 18,781,307 791,614
Gasoline, franchise and motor vehicle 681,545 712,980 659,979 (53,001)
Intergovernmental:
Federal operating grants 3,257 15,063 15,646 583
State operating grants 90,000 90,000 91,922 1,922
Charges for services 187,779 213,954 148,043 (65,911)
Licenses and fees 477,954 584,300 596,110 11,810
Investment income 203,600 799,442 799,442 -
Miscellaneous 42,368 45,868 36,064 (9,804)
Total revenues 16,302,946 21,797,412 22,472,247 674,835
Expenditures
Current:
General government 6,266,509 6,557,656 5,394,669 1,162,987
Public safety 4,331,540 4,699,003 3,951,919 747,084
Public works 2,459,273 2,530,561 1,767,603 762,958
Culture and recreation 2,458,524 2,607,805 2,046,657 561,148
Total expenditures 15,515,846 16,395,025 13,160,848 3,234,177
Excess (deficiency) of revenues over expenditures 787,100 5,402,387 9,311,399 3,909,012
Other financing sources (uses)
Designated cash (budgeted cash increase)(631,816) 1,722,948 - (1,722,948)
Transfers in 6,114,103 10,989,890 8,844,917 (2,144,973)
Transfers (out)(6,269,387) (18,115,225)(14,259,319) 3,855,906
Total other financing sources (uses)(787,100) (5,402,387) (5,414,402) (12,015)
Net change in fund balance - - 3,896,997 3,896,997
Fund balance - beginning of year - - 9,208,145 9,208,145
Fund balance - end of year -$ -$ 13,105,142$ 13,105,142$
Budgeted Amounts
The accompanying notes are an integral part of these financial statements.34
TOWN OF TAOS Exhibit C-2
Statement of Revenues, Expenditures, and Changes in Fund Balance
Budget (GAAP Budgetary Basis) and Actual
American Rescue Plan Special Revenue Fund
For the Year Ended June 30, 2024
Variances
Original Final Actual Final to Actual
Revenues
Taxes:
Property -$ -$ -$ -$
Gross receipts - - - -
Gasoline, franchise and motor vehicle - - - -
Intergovernmental:
Federal operating grants - - - -
State operating grants - - 182,096 182,096
Charges for services - - - -
Licenses and fees - - - -
Investment income - - - -
Miscellaneous - - - -
Total revenues - - 182,096 182,096
Expenditures
Current:
General government 784,303 720,053 163,850 556,203
Capital outlay 119,766 184,043 18,246 165,797
Total expenditures 904,069 904,096 182,096 722,000
Excess (deficiency) of revenues over expenditures (904,069) (904,096) - 904,096
Other financing sources (uses)
Designated cash (budgeted cash increase)904,069 904,096 - (904,096)
Total other financing sources (uses)904,069 904,096 - (904,096)
Net change in fund balance - - - -
Fund balance ‐ beginning of year - - 904,069 904,069
Fund balance ‐ restatement (Note 20)- - (904,069) (904,069)
Fund balance as restated - - - -
Fund balance ‐ end of year -$ -$ -$ -$
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 6,749,056$ 684,476$
Investments 1,349,781 200,000
Taxes receivable 85,715 -
Due from other governments 15,056 -
Customer receivables, net 455,969 32,076
Inventory 59,815 -
Total current assets 8,715,392 916,552
Noncurrent assets
Restricted cash and cash equivalents 369,866 -
Restricted investments - -
Capital assets 56,921,559 1,067,079
Less: accumulated depreciation (34,459,926) (908,143)
Total noncurrent assets 22,831,499 158,936
Total assets 31,546,891 1,075,488
Deferred outflows of resources
Deferred outflows- pension 347,910 -
Deferred outflows- OPEB 92,920 -
Total deferred outflows of resources 440,830 -
Total assets and deferred outflows of resources 31,987,721$ 1,075,488$
June 30, 2024
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
3,642,870 11,076,402$
- 1,549,781
- 85,715
- 15,056
114,675 602,720
- 59,815
3,757,545 13,389,489
1,772,103 2,141,969
124,500 124,500
9,128,251 67,116,889
(4,483,706) (39,851,775)
6,541,148 29,531,583
10,298,693 42,921,072
82,327 430,237
36,689 129,609
119,016 559,846
10,417,709$ 43,480,918$
The accompanying notes are an integral part of these financial statements.37
Water and Sewer Solid Waste
Liabilities
Current liabilities
Accounts payable 321,655$ 13,117$
Accrued payroll 23,973 -
Accrued compensated absences 43,076 -
Due to other funds 18,740 -
Deposits held in trust for others 369,866 -
Accrued interest 38,868 -
Current maturity of bonds and loans payable 215,918 -
Total current liabilities 1,032,096 13,117
Noncurrent liabilities
Accrued compensated absences 51,299 -
Bonds payable 899,600 -
Loans payable 1,424,388 -
Landfill closure and post-closure costs - -
Net pension liability 1,295,721 -
Net OPEB liability 206,645 -
Total noncurrent liabilities 3,877,653 -
Total liabilities 4,909,749 13,117
Deferred inflows of resources
Deferred inflows- pension 12,754 -
Deferred inflows- OPEB 222,906 -
Total deferred inflows of resources 235,660 -
Net position
Net investment in capital assets 19,921,727 158,936
Restricted for:
Landfill - -
Unrestricted 6,920,585 903,435
Total net position 26,842,312 1,062,371
Total liabilities and net position 31,987,721$ 1,075,488$
June 30, 2024
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
48,313$ 383,085$
6,548 30,521
10,617 53,693
6,721 25,461
- 369,866
712 39,580
193,000 408,918
265,911 1,311,124
2,304 53,603
- 899,600
1,771,000 3,195,388
827,788 827,788
337,652 1,633,373
86,032 292,677
3,024,776 6,902,429
3,290,687 8,213,553
24,463 37,217
94,071 316,977
118,534 354,194
2,680,545 22,761,208
1,896,603 1,896,603
2,431,340 10,255,360
7,008,488 34,913,171
10,417,709$ 43,480,918$
The accompanying notes are an integral part of these financial statements.39
Water and Sewer Solid Waste
Operating revenues
Charges for services 4,789,895$ 483$
Total operating revenues 4,789,895 483
Operating expenses
Depreciation 1,637,952 16,877
Personnel services 969,583 -
Contractual services 1,320,296 5,747
Supplies and purchases 26,165 -
Maintenance and materials 264,763 -
Utilities 490,854 -
Non-capital equipment 677,849 13,797
Other costs 312,801 -
Total operating expenses 5,700,263 36,421
Operating income (loss)(910,368) (35,938)
Non-operating revenues (expenses)
Gross receipts taxes 749,381 -
Interest expense (54,474) -
Investment income 121,230 11,115
Miscellaneous expense (32) -
Total non-operating revenues (expenses)816,105 11,115
Income (loss) before contributions and transfers (94,263) (24,823)
Capital grants 154,356 -
Transfers in 4,261,216 246,384
Transfers (out)(4,478,822) -
Change in net position (157,513) 221,561
Total net position, beginning of year 26,999,825 840,810
Total net position, end of year 26,842,312$ 1,062,371$
For the Year Ended June 30, 2024
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
1,789,479$ 6,579,857$
1,789,479 6,579,857
419,483 2,074,312
537,256 1,506,839
235,308 1,561,351
250 26,415
109,023 373,786
5,285 496,139
7,493 699,139
152,157 464,958
1,466,255 7,202,939
323,224 (623,082)
- 749,381
(35,781) (90,255)
97,271 229,616
(60,075) (60,107)
1,415 828,635
324,639 205,553
22,400 176,756
1,123,010 5,630,610
(1,169,622) (5,648,444)
300,427 364,475
6,708,061 34,548,696
7,008,488$ 34,913,171$
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 5,500,812$ 2,140$ 1,824,777$ 7,327,729$
Cash payments to employees for services (708,010) (246,384) (480,130) (1,434,524)
Cash payments to suppliers for goods and services (2,989,575) (19,794) (726,542) (3,735,911)
Net cash provided (used) by operating activities 1,803,227 (264,038) 618,105 2,157,294
Cash flows from noncapital financing activities:
Gross receipts taxes 749,381 - - 749,381
Miscellaneous expenses (32) - (60,075) (60,107)
Repayment of interfund loans (218) - (2,189) (2,407)
Transfers (net)(217,606) 246,384 (46,612) (17,834)
Net cash provided by noncapital financing activities 531,525 246,384 92,033 869,942
Cash flows from investing activities:
Purchase of investments - - (49,100) (49,100)
Proceeds from sale of investments - 49,100 - 49,100
Interest income 121,230 11,115 97,271 229,616
Net cash provided by investing activities 121,230 60,215 48,171 229,616
Cash flows from capital and related financing activities:
Interest paid (54,474) - (35,781) (90,255)
Capital grants 154,356 - 22,400 176,756
Acquisition of capital assets (1,006,177) - (1,609,757) (2,615,934)
Proceeds from issuance of long-term debt - - 2,074,000 2,074,000
Principal payments on loans (211,703) - (489,717) (701,420)
(1,117,998) - (38,855) (1,156,853)
1,337,984 42,561 719,454 2,099,999
5,780,938 641,915 4,695,519 11,118,372
7,118,922$ 684,476$ 5,414,973$ 13,218,371$
Net cash (used) by capital and related financing activities
Net increase in cash and cash equivalents
Cash and cash equivalents ‐ beginning of year
Cash and cash equivalents ‐ end of year
Reconciliation of operating income (loss) to
net cash provided (used) by operating activities:
Operating income (loss)(910,368)$ (35,938)$ 323,224$ (623,082)$
Adjustments to reconcile operating income (loss) to
net cash provided by operating activities:
Depreciation 1,637,952 16,877 419,483 2,074,312
Net pension and OPEB expense 243,279 (246,384) 56,768 53,663
Changes in assets and liabilities:
Receivables 681,894 1,657 35,298 718,849
Inventory 78,533 - - 78,533
Accounts payable 24,620 (250) (217,026) (192,656)
Accrued payroll expenses 9,454 - 2,815 12,269
Customer deposits 29,023 - - 29,023
Accrued compensated absences 8,840 - (2,457) 6,383
Net cash provided (used) by operating activities 1,803,227$ (264,038)$ 618,105$ 2,157,294$
For the Year Ended June 30, 2024
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 99,783$
Total assets 99,783$
Liabilities
Due to other entities 99,783$
Total liabilities 99,783$
Statement of Fiduciary Net Position
June 30, 2024
The accompanying notes are an integral part of these financial statements.44
TOWN OF TAOS Exhibit E-2
Custodial Funds
Additions:
Charges for services 11,366$
Total additions 11,366
Deductions:
Contractual services and other 9,060
Total deductions 9,060
Change in custodial funds due to others 2,306
Beginning - custodial funds due to others 97,477
Ending - custodial funds due to others 99,783$
For the Year Ended June 30, 2024
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, 2024
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, 2024, 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, 2024
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, 2024
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, 2024
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 American Rescue Plan Fund (Special Revenue Fund) is 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.
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, 2024
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, 2024
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 $2,141,969,and restricted investments in
the amount of $124,500, at June 30, 2024 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 2024. 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, 2024, 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, 2024.
51
TOWN OF TAOS
Notes to the Financial Statements
June 30, 2024
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 $246,763 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, 2024
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 $72,295 at June
30, 2024.
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 $6,992,526 in restricted fund balances at June 30, 2024.
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 $18,790,415 in
committed funds at June 30, 2024 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, 2024
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 $4,386,949 for
minimum fund balance for the year ended June 30, 2024. 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 49 and 110-113.
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, 2024
NOTE 1. Summary of Significant Accounting Policies (continued)
E.Newly Adopted Accounting Pronouncements
During the year ended June 30, 2024 the Town adopted GASB Statement No. 100 Accounting
Changes and Error Corrections—an amendment of GASB Statement No. 62. See Note 20 for restatement noted at year end 2024.
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 787,100$ 5,402,387$
American Rescue Plan (904,069)$ (904,096)$
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, 2024
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, 2024. 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, 2024, $39,765,515 of the Town’s deposits of $40,265,515 was exposed to
custodial credit risk. $39,765,515 was uninsured and collateralized by collateral held by the pledging
bank’s trust department, not in the Town’s name, and no amounts was uninsured and uncollateralized.
Total
Amount of deposits 7,799,665$ 32,465,850$ 40,265,515$
FDIC Coverage (250,000) (250,000) (500,000)
Total uninsured public funds 7,549,665 32,215,850 39,765,515
7,549,665 32,215,850 39,765,515
Uninsured and uncollateralized -$-$-$
Collateral requirement
(50% of uninsured funds)3,774,833$ 16,107,925$ 19,882,758$
Pledged Collateral 11,000,000 32,646,435 43,646,435
Over (Under) collateralized 7,225,167$ 16,538,510$ 23,763,677$
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, 2024
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, 2024, the Town had the following investments and maturities:
Weighted Average
Investment Type Maturities Fair Value Rating
New Mexico Local Government
Investment Pool 30 Days ( R ); 39 Days ( F ) 4,149,964$ AAAm
U.S. Governmental Securities NA 3,000,000 Aaa
U.S. Treasury Notes <1 year 2,101,777 Aaa
9,251,741$
The Town has presented $9,251,741 in investments at year end. Of the $9,251,741 noted above
$2,101,777 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, 2024
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, 2024:
Total Level 1 Level 2 Level 3
9,251,741$ -$9,251,741$ -$
5858
TOWN OF TAOS
Notes to the Financial Statements
June 30, 2024
NOTE 3. Deposits and Investments (continued)
Reconciliation to the Statement of Net Position:
Cash and cash equivalents per Exhibit A-1 38,472,356$
Restricted cash and cash equivalents per Exhibit A-1 2,141,969
Cash and investments - Statement of Fiduciary Assets and Liabilities per Exhibit E-1 99,783
Investments per Exhibit A-1 7,025,459
Restricted investments per Exhibit A-1 124,500
Total cash, investments, and cash equivalents 47,864,067
Add: outstanding checks and other reconciling items 1,654,648
Less: NMFA restricted accounts (2,101,777)
Less: New Mexico Government Local Investment Pool (4,149,964)
Less: U.S. Fixed Income Securities (3,000,000)
Less: petty cash (1,459)
Bank balance of deposits 40,265,515$
NOTE 4. Receivables
Governmental receivables as of June 30, 2024 are comprised of the following:
Other
Airport Capital Governmental
General Construction Projects Funds Total
Property taxes 283,031$ -$ -$ -$ 283,031$
Taxes receivable:
Gross receipts taxes 2,982,453 - 187,557 249,495 3,419,505
Franchise taxes 68,367 - -- 68,367
Lodger's taxes - - - 159,385 159,385
Oil and gas taxes 22,569 - - 17,120 39,689
MVD taxes 6,443 - - - 6,443
Total taxes receivable 3,079,832 - 187,557 426,000 3,693,389
Due from other governments:
State grants 8,042 37,854 - 164,464 210,360
Total due from other governments 8,042 37,854 - 164,464 210,360
Accounts receivable, net 3,370,905$ 37,854$ 187,557$ 590,464$ 4,186,780$
In accordance with GASB Statement No. 33, property tax revenues in the amount of $246,763 that were
not collected within the period of availability have been reclassified as deferred inflows in the
governmental fund financial statements as of June 30, 2024.
59
TOWN OF TAOS
Notes to the Financial Statements
June 30, 2024
NOTE 4. Receivables (continued)
Business-type activity receivables as of June 30, 2024 are comprised of the following:
Water and
Sewer Solid Waste
Taos Regional
Landfill
Taxes receivable
Gross receipts taxes 85,715$ -$-$
Customer receivable 1,397,719 44,546 147,975
Due from other governments:
State grants 14,801 --
Federal grants 255 --
Less: allowance for
uncollectable accounts (941,750) (12,470) (33,300)
Accounts receivable, net 556,740$ 32,076$ 114,675$
Total
Taxes receivable
Gross receipts taxes 85,715$
Customer receivable 1,590,240
Due from other governments:
State grants 14,801
Federal grants 255
Less: allowance for
uncollectable accounts (987,520)
Accounts receivable, net 703,491$
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 18,740$
General Fund Taos Regional Landfill 6,721
Total 25,461$
60
TOWN OF TAOS
Notes to the Financial Statements
June 30, 2024
NOTE 5. Interfund Receivables, Payables, and Transfers (continued)
Net operating transfers, made to supplement other funding sources were as follows:
Transfers Out Transfers In Amount
General Fund General Fund 8,765,201$
General Fund Local Government Correction Fund 173,754
General Fund Community Development Block Grant 5,000
General Fund Historic District 65,000
General Fund Confidential Informant Fund 20,000
General Fund Facilities Improvements 2,702,425
General Fund Capital Projects Fund 260,000
General Fund Airport Construction Fund 500,000
General Fund Capital Maintenance Operating Fund 1,123,575
General Fund Special Events Enterprise Fund 200,000
General Fund 1999 Gas Tax Acquisition Fund 444,365
Lodger's Tax Fund Public Transporation 260,041
Lodger's Tax Fund Lodger's Tax Fund 1,040,164
Municipal Road Gas Tax 1999 Gas Tax Acquisition Fund 100,668
1/4 Cent Municipal Gross Receipts Tax 2008 Shared GRT Revenue Bond 551,000
1/4 Cent Municipal Gross Receipts Tax General Fund 35,250
1/4 Cent Municipal Gross Receipts Tax Facilities Improvements 100,000
1/4 Cent Municipal Gross Receipts Tax 1999 Gas Tax Acquisition Fund 650,000
Library E-rate Grant 1/4 GRT Capital Improvements Fund 13,984
Local Economic Assist Municipal Road Gas Tax 1,964
Capital Projects Fund General Fund 26,633
Capital Projects Fund Vehicle Replacement Fund 275,669
Water and Sewer General Fund 17,834
Water and Sewer Water and Sewer 4,261,216
Taos Regional Landfill Solid Waste 46,612
Water and Sewer Solid Waste 199,772
Taos Regional Landfill Taos Regional Landfill 1,123,010
Total 22,963,136$
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 $3,750 and which started on July 1, 2021. The land has useful lives of 10 years each
with no purchase options and a discount rate of 3%.
61
TOWN OF TAOS
Notes to the Financial Statements
June 30, 2024
NOTE 6.Leases (continued)
A summary of the right to use the assets and changes occurring during the year ended June 30, 2024
follows:
Balance Balance
June 30, 2023 Additions Dispositions June 30, 2024
Right of Use Asset
Land 144,466$ -$ -$ 144,466$
Equipment 516,561 - - 516,561
Total right of use asset 661,027 - - 661,027
Less accumulated amortization for:
Land 57,786$ 28,893$ -$ 86,679$
Equipment 114,792 57,396 - 172,188
Total accumulated amortization 172,578 86,289 - 258,867
Right of use asset, net 488,449$ (86,289)$ -$ 402,160$
During the year ended June 30, 2024, 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, 2023 Additions Retirements June 30, 2024 One Year
Lease liability 502,757$ -$ 82,763$ 419,994$ 85,280$
502,757$ -$ 82,763$ 419,994$ 85,280$
The annual requirements to amortize the leases as of June 30, 2024, including interest payments, is as
follows:
Fiscal Year
Ending June 30, Principal Interest
2025 85,280$ 11,192$ 96,472$
2026 87,874 8,598 96,472
2027 58,965 6,435 65,400
2028 60,758 4,642 65,400
2029 62,606 2,794 65,400
2030-2032 64,511 890 65,401
419,994$ 34,551$ 454,545$
Total Debt
Service
62
TOWN OF TAOS
Notes to the Financial Statements
June 30, 2024
NOTE 7.Capital Assets
The following is a summary of capital assets and changes occurring during the year ended June 30,
2024. Land and construction in progress are not subject to depreciation.
Governmental Activities:
Balance
June 30, 2023 Additions
Balance
June 30, 2024
Capital assets not being
depreciated:
Land 6,506,388$ 840,345$ -$ 7,346,733$
Construction in progress 8,934,932 2,277,459 - 11,212,391
Total not being depreciated 15,441,320 3,117,804 - 18,559,124
Capital assets being depreciated:
Land improvements 8,708,909 167,547 - 8,876,456
Buildings and improvements 37,546,940 250,833 26,750 37,771,023
Machinery and Equipment 20,921,419 891,329 - 21,812,748
Infrastructure 87,345,085 1,278,763 - 88,623,848
Total being depreciated 154,522,353 2,588,472 26,750 157,084,075
Total capital assets 169,963,673 5,706,276 26,750 175,643,199
Accumulated depreciation:
Land improvements 6,287,316 278,715 - 6,566,031
Buildings and improvements 25,045,564 1,182,378 26,750 26,201,192
Machinery and Equipment 16,812,826 827,044 - 17,639,870
Infrastructure 58,653,320 2,682,446 - 61,335,766
Total accumulated depreciation 106,799,026 4,970,583 26,750 111,742,859
Capital assets, net 63,164,647$ 735,693$ -$ 63,900,340$
Deletions
and
Transfers
Depreciation expense for the year ended June 30, 2024 was charged to the functions of the
governmental activities as follows:
General 4,523,231$
Public safety 99,413
Public works 347,939
Total 4,970,583$
63
TOWN OF TAOS
Notes to the Financial Statements
June 30, 2024
NOTE 7. Capital Assets (continued)
Business-type Activities:
Balance
June 30, 2023 Additions
Deletions and
Transfers
Balance
June 30, 2024
Capital assets not being
depreciated:
Land 262,422$ -$ -$ 262,422$
Construction in progress 7,366,271 998,177 224,683 8,139,765
Total not being depreciated 7,628,693 998,177 224,683 8,402,187
Capital assets being depreciated:
Land improvements 104,895 1,446,257 224,683 1,775,835
Buildings and improvements 6,776,679 - - 6,776,679
Machinery and Equipment 10,223,892 171,500 - 10,395,392
Infrastructure 39,766,796 - - 39,766,796
Total being depreciated 56,872,262 1,617,757 224,683 58,714,702
Total capital assets 64,500,955 2,615,934 449,366 67,116,889
Accumulated depreciation:
Land improvements 97,515 73,160 - 170,675
Buildings and improvements 3,835,460 220,080 - 4,055,540
Machinery and Equipment 9,482,125 212,592 - 9,694,717
Infrastructure 24,362,363 1,568,480 - 25,930,843
Total accumulated depreciation 37,777,463 2,074,312 - 39,851,775
Capital assets, net 26,723,492$ 541,622$ 449,366$ 27,265,114$
Water and Sewer 1,637,952$
Solid Waste 16,877
Taos Regional Landfill 419,483
Total 2,074,312$
64
TOWN OF TAOS
Notes to the Financial Statements
June 30, 2024
NOTE 8.Long-term Debt
During the year ended June 30, 2024, the following changes occurred in the liabilities reported in the
government-wide statement of net position:
Governmental Activities:
Balance
June 30, 2023 Additions Retirements
Balance
June 30, 2024
Due Within
One Year
Revenue Bonds 1,515,000$ -$ 485,000$ 1,030,000$ 505,000$
Compensated Absences 872,686 400,689 453,984 819,391 453,984
Total 2,387,686$ 400,689$ 938,984$ 1,849,391$ 958,984$
Revenue Bonds
At June 30, 2024, 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, 2024, including interest
payments, are as follows:
2025 505,000$ 43,260$ 548,260$
2026 525,000 22,050 547,050
Total 1,030,000$ 65,310$ 1,095,310$
Fiscal Year
Ending June 30,Principal Interest
Total Debt
Service
65
TOWN OF TAOS
Notes to the Financial Statements
June 30, 2024
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, 2024, government-wide
compensated absences decreased $53,295 from the prior year accrual. Compensated absences are
liquidated by the respective funds in which they are accrued.
Proprietary Funds:
The proprietary funds have incurred various forms of debt which were used for the purposes of
constructing, expanding, repairing and making improvements to its property, plant and equipment. The
following schedule shows the changes to its various forms of debt during the fiscal year ended June 30,
2024:
Business-type Activities:
Balance
June 30, 2023 Additions Retirements
Balance
June 30, 2024
Due Within
One Year
Revenue Bonds 1,031,600$ -$64,000$ 967,600$ 68,000$
NMFA and RUS Loans 2,099,726 2,074,000 637,420 3,536,306 340,918
Landfill closure and
postclosure 626,879 200,909 -827,788 -
Compensated Absences 100,913 60,076 53,693 107,296 53,693
Total 3,859,118$ 2,334,985$ 755,113$ 5,438,990$ 462,611$
Revenue Bonds
At June 30, 2024, 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, 2024
NOTE 8.Long-term Debt (continued)
The annual requirements to amortize the revenue bonds as of June 30, 2024, including interest
payments, are as follows:
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 83,000 35,441 118,441
2030-2034 447,600 105,998 553,598
2035-2037 144,000 11,121 155,121
Total 967,600$ 334,199$ 1,301,799$
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$
NMFA 2023 Construction Loan 11/9/2023 6/1/2033 2.157-3.270%2,074,000$
67
TOWN OF TAOS
Notes to the Financial Statements
June 30, 2024
NOTE 8.Long-term Debt (continued)
The annual requirements to amortize the loans as of June 30, 2024, including interest payments are as
follows:
2025 340,918$ 57,077$ 397,995$
2026 348,091 50,975 399,066
2027 354,165 44,871 399,036
2028 360,287 38,769 399,056
2029 366,101 32,532 398,633
2030-2034 1,417,917 63,395 1,481,312
2035-2039 202,735 140 202,875
2040-2043 146,092 40 146,132
Total 3,536,306$ 287,799$ 3,824,105$
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, 2024, business-type compensated
absences increased $6,383 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, 2024.
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, 2024.
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, 2024.68
TOWN OF TAOS
Notes to the Financial Statements
June 30, 2024
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, 2024
NOTE 11.Pension Plan –Public Employee Retirement Association of NM (continued)
Contributions –See PERA’s annual comprehensive financial report that can be obtained on PERA’s
website for contribution description..
PERA Contribution Rates and Pension Factors in effect during FY23
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%10.42% 18.74%3.00%2.50%90.00%
MUNICIPAL PLANS 1 –4
Municipal Plan 1
(plan open to new employers)7.00% 9.00% 8.15% 2.00%2.00%90.00%
Municipal Plan 2(plan open to new employers)9.15%11.15%10.30%2.50%2.00%90.00%
Municipal Plan 3(plan closed to new employers 6/95)13.15%15.65%10.30%3.00%2.50%90.00%
Municipal Plan 4(plan closed to new employers 6/00)15.65%17.65%12.80%3.00%2.50%90.00%
MUNICIPAL POLICE PLANS 1 –5
Municipal Police Plan 1 7.00% 9.00%11.15%2.00%2.00%90.00%
Municipal Police Plan 2 7.00% 9.00%16.15%2.50%2.00%90.00%
Municipal Police Plan 3 7.00%9.00%19.65%2.50%2.00%90.00%
Municipal Police Plan 4 12.35% 14.35% 19.65%3.00%2.50%90.00%
Municipal Police Plan 5 16.30% 18.30% 19.65%3.50%3.00%90.00%
MUNICIPAL FIRE PLANS 1 –5
Municipal Fire Plan 1 8.00%11.50% 12.15%2.00%2.00%90.00%
Municipal Fire Plan 2 8.00%11.50% 18.65%2.50%2.00%90.00%
Municipal Fire Plan 3 8.00%11.50%22.40%2.50%2.00%90.00%
Municipal Fire Plan 4 12.80% 16.30% 22.40%3.00%2.50%90.00%
Municipal Fire Plan 5 16.20% 19.70% 22.40%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 CorrectionalOfficer Plan 1 7.60%9.10%25.50%3.00%3.00%90.00%
State Plan 3 -Peace Officer 7.42%10.42%18.74%3.00%3.00%90.00%
Juvenile Correctional Officer Plan 2 4.78% 7.78%27.87%3.00%3.00%90.00%
70
TOWN OF TAOS
Notes to the Financial Statements
June 30, 2024
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, 2024, the Town reported a liability of $8,143,195
for its proportionate share of the net pension liability. The net pension liability was measured as of June
30, 2023, and the total pension liability used to calculate the net pension liability was determined by an
actuarial valuation as of June 30, 2022. The total pension liability was rolled-forward from the valuation
date to the plan year ending June 30, 2023 using generally accepted actuarial principles. Therefore, the
employer’s portion was established as of the measurement date of June 30, 2022.
There were no significant events or changes in benefit provision that required an adjustment to the roll-
forward liabilities as of June 30, 2023.
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, 2023, the Town’s proportion was 0.3846 percent, which was
a increase of 0.0003 percent from its proportion measured as of June 30, 2022.
For the year ended June 30, 2024, the Town recognized pension expense of $936,567. At June 30, 2024,
the Town reported deferred outflows of resources and deferred inflows of resources related to pensions
from the following sources:
Deferred Outflow Deferred Inflow
of Resources of Resources
Changes of assumptions -$ -$
Changes in proportion 162,440 88,559
Difference between expected and actual experience 611,180 99,381
Net difference between projected and actual
earnings on pension plan investments 765,652 -
Town's contributions subsequent to the
measurement date 533,481 -
Total 2,072,753$ 187,940$
$533,481 reported as deferred outflows of resources related to pensions resulting from the Town’s
contributions subsequent to the measurement date will be recognized as a reduction of the net pension
liability in the year ended June 30, 2024. Other amounts reported as deferred outflows of resources and
deferred inflows of resources related to pensions will be recognized in pensions expense as follows:
Year ended June 30:
2025 422,205$
2026 147,917
2027 711,493
2028 69,717
Thereafter -
Total 1,351,332$
71
TOWN OF TAOS
Notes to the Financial Statements
June 30, 2024
NOTE 11.Pension Plan –Public Employee Retirement Association of NM (continued)
PERA Fund Division Municipal Police:At June 30, 2024, The Town reported a liability of $4,413,612
for its proportionate share of the net pension liability. The net pension liability was measured as of June
30, 2023, and the total pension liability used to calculate the net pension liability was determined by an
actuarial valuation as of June 30, 2022. The total pension liability was rolled-forward from the valuation
date to the plan year ending June 30, 2023 using generally accepted actuarial principles. Therefore, the
employer’s portion was established as of the measurement date of June 30, 2022. There were no
significant events or changes in benefit provision that required an adjustment to the roll-forward
liabilities as of June 30, 2023.
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, 2023, the Town’s proportion was 0.4577 percent, which
was an increase of 0.0106 percent from its proportion measured as of June 30, 2022.
For the year ended June 30, 2023, the Town recognized pension expense of $599,861.At June 30, 2024,
The Town reported deferred outflows of resources and deferred inflows of resources related to
pensions from the following sources:
Deferred Outflow Deferred Inflow
of Resources of Resources
Changes of assumptions -$-$
Changes in proportion 172,157 18,781
Difference between expected and actual experience 378,079 -
Net difference between projected and actual
earnings on pension plan investments 366,564 -
Town's contributions subsequent to the
measurement date 266,919 -
Total 1,183,719$ 18,781$
$266,919 reported as deferred outflows of resources related to pensions resulting from the Town’s
contributions subsequent to the measurement date will be recognized as a reduction of the net pension
liability in the year ended June 30, 2024. Other amounts reported as deferred outflows of resources and
deferred inflows of resources related to pensions will be recognized in pensions expense as follows:
Year ended June 30:
2025 351,645$
2026 152,110
2027 360,797
2028 33,467
Thereafter -
Total 898,019$
72
TOWN OF TAOS
Notes to the Financial Statements
June 30, 2024
NOTE 11.Pension Plan –Public Employee Retirement Association of NM (continued)
PERA Fund Division Municipal Fire:At June 30, 2024, The Town reported a liability of $3,352,982 for
its proportionate share of the net pension liability. The net pension liability was measured as of June 30,
2023, and the total pension liability used to calculate the net pension liability was determined by an
actuarial valuation as of June 30, 2022. The total pension liability was rolled-forward from the valuation
date to the plan year ending June 30, 2023 using generally accepted actuarial principles. Therefore, the
employer’s portion was established as of the measurement date of June 30, 2022. There were no
significant events or changes in benefit provision that required an adjustment to the roll-forward
liabilities as of June 30, 2023.
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 0.3722 percent, which
was a decrease of 0.0318 percent from its proportion measured as of June 30, 2022.
For the year ended June 30, 2024, the Town recognized pension expense of $531,674. At June 30, 2023,
The Town reported deferred outflows of resources and deferred inflows of resources related to
pensions from the following sources:
Deferred Outflow Deferred Inflow
of Resources of Resources
Changes of assumptions -$-$
Changes in proportion 379,405 216,258
Difference between expected and actual experience 264,770 855
Net difference between projected and actual
earnings on pension plan investments 142,465 -
Town's contributions subsequent to the
measurement date 154,117 -
Total 940,757$ 217,113$
$154,117 reported as deferred outflows of resources related to pensions resulting from the Town’s
contributions subsequent to the measurement date will be recognized as a reduction of the net pension
liability in the year ended June 30, 2023. Other amounts reported as deferred outflows of resources and
deferred inflows of resources related to pensions will be recognized in pensions expense as follows:
Year ended June 30:
2025 312,657$
2026 124,543
2027 119,516
2028 12,811
Thereafter -
569,527$
73
TOWN OF TAOS
Notes to the Financial Statements
June 30, 2024
NOTE 11.Pension Plan –Public Employee Retirement Association of NM (continued)
Actuarial assumptions.The total pension liability in the June 30, 2022 actuarial valuation was
determined using the following significant actuarial assumptions, applied to all periods included in the
measurement:
PERA FUND
Actuarial Valuation Date June 30,2022
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
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, 2022. The total pension liability was rolled-forward from
the valuation date to the plan year ended June 30, 2023. These assumptions were adopted by the Board
use in the June 30, 2022 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, 2024
NOTE 11.Pension Plan –Public Employee Retirement Association of NM (continued)
Asset Class Target
Allocation
Long-term
Expected Real
Rate of Return
Global Equity 38.00%6.90%
Risk Reduction & Mitigation 17.00%3.90%
Credit Oriented Fixed Income 19.00%6.00%
Real Assets to include Real Estate Equity 18.00%
Multi-Risk Allocation 8.00%
7.00%
0.61%
Total 100.00%
Discount rate. A single discount rate of 7.25% was used to measure the total pension liability as of June
30, 2023. 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 11,806,415$ 8,143,195$ 5,097,518$
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 6,355,967$ 4,413,612$ 2,823,693$
75
TOWN OF TAOS
Notes to the Financial Statements
June 30, 2024
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 433,406$ 3,352,982$ 2,548,281$
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, 2024, the Town had payables to the plan in the amount of
$86,211.
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, 2024
NOTE 12.Post-Employment Benefits –State Retiree Health Care Plan (continued)
Employees covered by benefit terms –At June 30, 2023, the Fund’s measurement date, the following
employees were covered by the benefit terms:
Plan membership
Current retirees and surviving spouses 52,978
Inactive and eligible for deferred benefit 12,552
Current active members 93,595
159,125
Active membership
State general 18,462
State police and corrections 1,260
Municipal general 17,283
Municipal police 3,169
Municipal fire 2,419
Educational Retirement Board 51,002
93,595
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 $143,837 for the year ended June 30, 2023.
77
TOWN OF TAOS
Notes to the Financial Statements
June 30, 2024
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, 2024, the Town reported a liability of $1,933,744 for its proportionate share of the net
OPEB liability. The net OPEB liability was measured as of June 30, 2023, 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, 2023. At June 30, 2024, the Town’s proportion was 0.11355 percent.
For the year ended June 30, 2024, the Town recognized OPEB income of $664,265.At June 30, 2024 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 32,690$350,105$
Net difference between expected and actual
investments on OPEB plan investments 41,346 -
Change of assumptions 372,142 1,824,168
Changes in proportion 339,731 487,777
Town's contributions subsequent to the measurement date 143,857 -
Total 929,766$ 2,662,050$
Deferred outflows of resources totaling $143,857 represent Town contributions to the Fund made
subsequent to the measurement date and will be recognized as a reduction of net OPEB liability in the
year ending June 30, 2024. Other amounts reported as deferred outflows of resources and deferred
inflows of resources will be recognized in OPEB expense as follows:
Year ended June 30:
2025 (635,515)$
2026 (434,154)
2027 (443,738)
2028 (249,139)
2029 (113,595)
Total (1,876,141)$
78
TOWN OF TAOS
Notes to the Financial Statements
June 30, 2024
NOTE 12.Post-Employment Benefits –State Retiree Health Care Plan (continued)
Actuarial assumptions. The total OPEB liability as of June 30, 2023 was determined by an actuarial
valuation using the following actuarial assumptions:
Validation date June 30, 2023
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
Projectedpayroll 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, 2024
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 1.6%
U.S. equity - large cap 6.9%
Non U.S. - emerging markets 8.7%
Non U.S. - developed equities 7.2%
Private equity 10.0%
Credit and structured finance 3.7%
Real estate 3.6%
Absolute return 3.2%
U.S. equity - small/mid cap 6.9%
Discount Rate. The discount rate used to measure the Fund’s total OPEB liability is 6.22% as of June
30, 2023. 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
Authority'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, 2059.The 7.00%discount
rate, which includes the assumed inflation rate of 2.30%for ERB members and 2.50% for PERA members,
was used to calculate the net OPEB liability through 2052.Beyond 2059, the index rate for 20-year, tax
exempt general obligation municipal bonds with an average rating of AA/Aa or higher (3.54%) was
applied. Thus, 6.22% is the blended discount rate.
Sensitivity of the net OPEB liability to changes in the discount rate and healthcare cost trend rates.
The following presents the net OPEB liability, calculated using the discount rate of 6.22% as of June 30,
2023, as well as what the Fund’s net OPEB liability would be if it were calculated using a discount rate
that is 1-percent lower or 1-percent higher than the current rate:
Current Discount
1% Decrease Rate 1% Increase
(5.22%)(6.22%)(7.22%)
Town's proportionate share of the
net OPEB liability 2,437,974$ 1,933,744$ 1,525,018$
80
TOWN OF TAOS
Notes to the Financial Statements
June 30, 2024
NOTE 12.Post-Employment Benefits –State Retiree Health Care Plan (continued)
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 1,600,943$ 1,933,744$ 2,315,955$
Trend Rate Sensitivity Analysis
NOTE 13.
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.
Payable Changes in the Net OPEB Liability. At June 30, 2024, the Town reported a payable of $13,258
for outstanding contributions due to NMRHCA for the year ended June 30, 2024.
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 $827,788
as of June 30, 2024, 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, 2024. 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, 2024 cash of $1,772,103 and investments of $124,500 is part of the
pooled funds held by the Town and is presented as restricted cash on the statement of net position.
81
TOWN OF TAOS
Notes to the Financial Statements
June 30, 2024
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
Public Restroom Facility
Participants Town of Taos, County of Taos
Responsible party County of Taos
Description Designing, constructing, operating, and maintaining a public
restroom facility
Term of agreement November 20, 2007 to January 31, 2028
Amount of project Indeterminate
Town contributions Indeterminate
Audit responsibility County of Taos
Enhanced 911‐Response System
Participants Town of Taos, County of Taos, Town of Questa, Village of Taos
Ski Valley, Taos Pueblo
Responsible party County of Taos
Description Provide an answering point for information regarding needed
emergency services
Term of agreement October 19, 2017 until terminated
Amount of project Estimated $973,873 per year
Town contributions None in Fiscal year 2023-2024
Audit responsibility County of Taos
82
TOWN OF TAOS
Notes to the Financial Statements
June 30, 2024
NOTE 14. Joint Powers Agreements (continued)
Taos Regional Landfill Board
Participants Town of Taos, County of Taos, Village of Questa, Village of Red
River, Village of Taos Ski Valley
Responsible party Town of Taos
Description Establish the Taos Regional Landfill Board
Term of agreement Until terminated
Amount of project Dependent on landfill expenses
Town contributions none to date
Audit responsibility Town of Taos
El Valle De Los Ranchos Water & Sanitation District
Participants Town of Taos, El Valle De Los Ranchos Water & Sanitation
District
Responsible party None
Description Town to provide treatment for Distric’s wastewater
Term of agreement Until terminated
Amount of project $24.25 per residential customer
Town contributions $24.25 per residential customer
Audit responsibility None
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.
83
TOWN OF TAOS
Notes to the Financial Statements
June 30, 2024
NOTE 16. Construction and Other Significant Commitments
The Town has committed to pay for several construction contracts that were not completed at June 30,
2024 in the amount of $9,568,764 as follows:
Project Description
Contract Amount
Remaining
Brush Truck Aparatus 274,805$ Siddons-Martin
Fred Baca Park Court Renovation 123,944 Cooperative Education Services
Roof Repair at Civic Center 1,505,528 Design-Build Solutions
Terminal Service Building 379,224 Armstrong Consultants, Inc
Taos Regional Ariport - Taxiway A 78,181 K. Barnett & Sons
Taos Regional Ariport - On-Site Utilities 151,954 Daniel B. Stephens
Taos Regional Ariport - Airport Apron 246,390 Armstrong Consultants, Inc
Taos Regional Ariport - Airport Apron Construction 3,428,656 Northern Mountain Construction
In Water Pumps for storage tank 131,210 Alpha Southwest
Taos Regional Ariport - Southwest Transmission Line 56,022 Daniel B. Stephens
Agreement 3,103,114 Daniel B. Stephens
Membrane Replacement at Waste Water Treatment Plant 89,736 Zenon Environmental
9,568,764$
Contractor
NOTE 17. Subsequent Events
The date to which events occurring after June 30, 2024, 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, 2024 which is the date on which the financial statements were issued. No issues were
noted for disclosure at December 7, 2024.
NOTE 18. 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.
NOTE 19. Restricted Net Position
The government-wide statement of net position reports $22,286,886 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 110-113.
84
TOWN OF TAOS
Notes to the Financial Statements
June 30, 2024
NOTE 20. Net Position and Fund Balance Restatement
The Town has restated beginning year net position of the governmental activities and beginning fund
balance for the American Rescue Plan Act fund, both as decreases, totaling $904,069 to properly show
the fund’s money as an unearned revenue rather than as a restricted fund balance as the Town
previously reported revenue in the prior year for the American Rescue Plan but it didn’t meet the
reporting requirements and this has been corrected.
NOTE 21. 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 $281,600 and $65,310,
respectively. Principal and interest paid for the current year and total customer net revenues were
$40,134 and $4,789,895 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 $686,000 and $85,071 respectively.
Principal and interest paid for the current year and total customer net revenues were $78,259 and
$4,789,895 , 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 $154,751 with no interest due. Principal for the current year and total customer net
revenues were $31,218 and $4,789,895, 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 $540,000 with no interest due. Principal for the
current year and total customer net revenues were $60,000 and $4,789,895 respectively.
85
TOWN OF TAOS
Notes to the Financial Statements
June 30, 2024
NOTE 21. Utility Revenues Pledged (continued)
The Town of Taos has pledged future revenues from the Taos Wastewater project, net of operation and
maintenance expenses, to repay $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 $90,072 with no interest due. Principal for the current year and total customer net
revenues were $10,134 and $4,789,895, respectively.
The Town of Taos has pledged future revenues from the New Cell for Landfill Facility, net of operation
and maintenance expenses, to repay $1,376,046 in NMFA loan issued 2015. The loans are payable solely
from utility customer net revenues and are payable through June 2025. The pledged revenues shall be in
an amount sufficient to pay principal, premium, if any, interest and other amounts due under the loan
agreement, including an amount sufficient to cure any deficiencies in the debt service account or the
loan agreement reserve account, to the NMFA or the Trustee, as its assignee, to be deposited in the debt
service reserve account or the loan agreement reserve account held by the trustee, payable from and
constituting a lien upon the pledged revenues. The total principal and interest remaining to be paid on is
zero at June 30, 2024, as this loan is paid. Principal and interest paid for the current year and total
customer net revenues were $381,496 and $1,789,479, 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 $713,455 and $770, respectively. Principal and interest paid for the
current year and total customer net revenues were $40,576 and $4,789,895, respectively. The Town of Taos has pledged future revenues from the Taos NMFA 2023 Construction Loan, for the construction of a new Landfill Cell for the Town’s existing solid waste landfill facility. 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 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 $1,964,000 and $287,029, respectively. Principal and interest paid
for the current year and total customer net revenues were $110,000 and $34,002, respectively.
86
TOWN OF TAOS
Notes to the Financial Statements
June 30, 2024
NOTE 22. Subsequent Accounting Pronouncements
In June 2024, GASB Statement No. 101 Compensated Absences, was issued. Effective Date: The
provisions of this Statement are effective for fiscal years beginning after December 15, 2023. The Town
does not expect this pronouncement to have a material effect on the financial statements.
In December 2023, GASB Statement No. 102 Certain Risk Disclosures, was issued. Effective Date: The
provisions of this Statement are effective for fiscal years beginning after June 15, 2024. The Town does
not expect this pronouncement to have a material effect on the financial statements.
In April 2024, GASB Statement No. 103 Financial Reporting Model Improvements, was issued. Effective
Date: The provisions of this Statement are effective for fiscal years beginning after June 15, 2025. The
Town does not expect this pronouncement to have a material effect on the financial statements.
87
Page Left Intentionally Blank
88
R EQUIRED SUPPLEMENTARY INFORMATION
89
2024
Measurement
Date (As of and
for the year
ended
June 30, 2023)
2023
Measurement
Date (As of and
for the year
ended
June 30, 2022)
2022
Measurement
Date (As of and
for the year
ended
June 30, 2021)
0.38457% 0.38427% 0.3611%
8,143,195$ 6,815,829$ 4,068,350$
4,190,139$ 3,740,630$ 3,404,290$
67.26% 69.35% 77.25%
Town of Taos's proportionate share of the net
pension liability as a percentage
of its covered payroll
Schedule of the Town's Proportionate Share of the Net Pension Liability
TOWN OF TAOS
Plan fiduciary net position as a percentage
of the total pension liability
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
Last 10 Fiscal Years*
Public Employees Retirement Association (PERA) Plan
119.51%182.21%194.34%
See independent auditors' report.
See notes to required supplementary information.90
Schedule A-1
Page 1 of 3
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)
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)
0.3895% 0.4082% 0.3528% 0.4630% 0.4710% 0.5054% 0.5476%
7,876,575$ 7,066,348$ 5,624,937$ 6,362,011$ 7,524,994$ 5,152,991$ 4,271,868$
3,676,714$ 3,606,337$ 3,793,609$ 3,909,077$ 4,069,174$ 4,513,593$ 4,457,324$
66.36% 70.52% 71.13% 73.74% 69.18% 76.99% 81.29%
214.23%95.84%114.17%184.93%162.75%148.27%195.94%
See independent auditors' report.
See notes to required supplementary information.91
2024
Measurement
Date (As of and
for the year
ended
June 30, 2023)
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)
0.45766% 0.44708% 0.4064%
4,413,612$ 3,593,046$ 2,101,501$
1,193,852$ 1,089,093$ 980,451$
67.26% 69.35% 77.25%
369.70%
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
214.34%
Town of Taos's proportionate share of the net
pension liability as a percentage of its covered
payroll
Plan fiduciary net position as a percentage of
the total pension liability
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.92
Schedule A-1
Page 2 of 3
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)
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)
0.4210% 0.5039% 0.5100% 0.4874% 0.4766% 0.4844% 0.4887%
3,615,841$ 3,722,153$ 3,479,752$ 2,707,827$ 3,516,497$ 2,329,267$ 1,593,109$
994,304$ 1,120,723$ 1,020,869$ 911,949$ 953,345$ 949,833$ 937,534$
66.36% 70.52% 71.13% 73.74% 69.18% 76.99% 81.29%
340.86%363.66%169.93%245.23%368.86%332.12%296.93%
See independent auditors' report.
See notes to required supplementary information.93
2024
Measurement
Date (As of and
for the year
ended
June 30, 2023)
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)
0.37223% 0.41456% 0.2963%
3,352,982$ 3,148,396$ 1,798,688$
656,893$ 649,380$ 423,601$
67.26% 69.35% 77.25%
TOWN OF TAOS
510.43%
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
424.62%
Town of Taos's proportionate share of the net
pension liability as a percentageof its covered
payroll
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
Town of Taos's proportion of the net pension
liability
484.83%
See independent auditors' report.
See notes to required supplementary information.94
Schedule A-1
Page 3 of 3
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)
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)
0.2787% 0.2377% 0.2497% 0.2753% 0.2784% 0.2769% 0.2567%
2,108,014$ 1,633,562$ 1,598,237$ 1,575,114$ 1,857,210$ 1,429,131$ 1,071,464$
389,109$ 316,260$ 317,344$ 321,046$ 336,796$ 315,617$ 285,100$
66.36% 70.52% 71.13% 73.74% 69.18% 76.99% 81.29%
541.75%375.82%490.62%516.53%452.81%551.43%503.63%
See independent auditors' report.
See notes to required supplementary information.95
As of and for
the year ended
June 30, 2024
As of and for
the year ended
June 30, 2023
As of and for
the year ended
June 30, 2022
533,481$ 431,584$ 357,570$
(533,481) (431,584) (357,570)
-$ -$ -$
4,696,124$ 4,190,139$ 3,740,630$
11.36% 10.30% 9.56%
Last 10 Fiscal Years*
PERA Fund Municipal General Division
Public Employees Retirement Association (PERA) Plan
Schedule of the Town's Contributions
TOWN OF TAOS
Contribution deficiency (excess)
Contributions in relation to the contractually
required contribution
Contractually required contribution
Contributions as a percentage of covered
payroll
Town of Taos’s covered payroll
See independent auditors' report.
See notes to required supplementary information.96
Schedule A-2
Page 1 of 3
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
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
325,110$ 350,621$ 344,405$ 362,290$ 373,065$ 386,572$ 428,791$
(325,110) (350,621) (344,405) (362,290) (373,065) (386,572) (428,791)
-$ -$ -$ -$ -$ -$ -$
3,404,290$ 3,676,714$ 3,606,337$ 3,793,609$ 3,909,077$ 4,069,174$ 4,513,593$
9.55% 9.54% 9.55% 9.55% 9.54% 9.50% 9.50%
See independent auditors' report.
See notes to required supplementary information.97
As of and for
the year ended
June 30, 2024
As of and for
the year ended
June 30, 2023
As of and for
the year ended
June 30, 2022
266,919$ 234,593$ 205,839$
(266,919) (234,593) (205,839)
-$ -$ -$
1,324,363$ 1,193,852$ 1,089,093$
20.15% 19.65% 18.90%
Public Employees Retirement Association (PERA) Plan
Schedule of the Town's Contributions
Contributions in relation to the contractually
required contribution
TOWN OF TAOS
Town of Taos’s covered payroll
Contribution deficiency (excess)
Contributions as a percentage of covered
payroll
Contractually required contribution
Last 10 Fiscal Years*
PERA Fund Municipal Police Division
See independent auditors' report.
See notes to required supplementary information.98
Schedule A-2
Page 2 of 3
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
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
185,304$ 187,924$ 211,817$ 192,944$ 161,795$ 169,123$ 168,500$
(185,304) (187,924) (211,817) (192,944) (161,795) (169,123) (168,500)
-$ -$ -$ -$ -$ -$ -$
980,451$ 994,304$ 1,120,723$ 1,020,869$ 911,949$ 953,345$ 949,833$
18.90% 18.90% 18.90% 18.90% 17.74% 17.74% 17.74%
See independent auditors' report.
See notes to required supplementary information.99
As of and for
the year ended
June 30, 2024
As of and for
the year ended
June 30, 2023
As of and for
the year ended
June 30, 2022
154,117$ 145,502$ 140,591$
(154,117) (145,502) (140,591)
-$ -$ -$
673,039$ 656,893$ 649,380$
22.90% 22.15% 21.65%
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
Last 10 Fiscal Years*
PERA Fund Municipal Fire Division
Public Employees Retirement Association (PERA) Plan
Schedule of the Town's Contributions
See independent auditors' report.
See notes to required supplementary information.100
Schedule A-2
Page 3 of 3
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
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
91,710$ 84,242$ 68,470$ 68,705$ 69,503$ 72,748$ 68,173$
(91,710) (84,242) (68,470) (68,705) (69,503) (72,748) (68,173)
-$ -$ -$ -$ -$ -$ -$
423,601$ 389,109$ 316,260$ 317,344$ 321,046$ 336,796$ 315,617$
21.65% 21.65% 21.65% 21.65% 21.65% 21.60% 21.60%
See independent auditors' report.
See notes to required supplementary information.101
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 2023 report is available at http://www.nmpera.org/finanical-
overview/retirement-fund-valuation-reports/.
For the Year Ended June 30, 2024
Notes to Required Supplementary Information
TOWN OF TAOS
See independent auditors' report.
See notes to required supplementary information.102
Page Left Intentionally Blank
103
2024
Measurement
Date (As of and
for the Year
Ended June 30,
2023)
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)
0.11355% 0.11550% 0.10379% 0.11055%
1,933,744$ 2,669,946$ 3,415,054$ 4,641,894$
6,040,884 6,023,917 4,753,407 5,003,183
32.01%44.32%71.84%92.78%
44.16%33.33%25.39%16.50%Plan fiduciary net position as a
percentage of the total OPEB liability
* 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 proportionate share
of the net OPEB liability (asset)
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 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
See independent auditors' report.
See notes to required supplementary information.104
Schedule B-1
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)
0.12328% 0.13080% 0.12709%
3,997,218$ 5,687,649$ 5,759,303$
5,111,405 5,250,703 5,294,121
78.20%108.32%108.79%
18.92%13.14%11.34%
See independent auditors' report.
See notes to required supplementary information.105
As of and for
the
Year Ended
June 30, 2024
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
Contractually required contribution 143,857$ 129,615$ 132,068$ 101,786$
143,857 129,615 132,068 101,786
Contribution deficiency (excess)-$ -$ -$ -$
6,693,526 6,040,884 6,023,917 4,753,407
2.15%2.15%2.19%2.14%
Notes to Required Supplementary Information
RHC Plan
TOWN OF TAOS
Last 10 Fiscal Years*
Retiree Health Care OPEB Plan
Schedule of Contributions
In the total OPEB liability measured as of June 30, 2023, changes in assumptions include adjustments resulting
from a decrease in the discount rate from 5.42% to 6.22%.
* 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.
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.106
Schedule B-2
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
106,685$ 109,126$ 111,708$
106,685 109,126 111,708
-$ -$ -$
5,003,183 5,111,405 5,250,703
2.13%2.13%2.13%
See independent auditors' report.
See notes to required supplementary information.107
Page Left Intentionally Blank
108
S UPPLEMENTARY INFORMATION
109
TOWN OF TAOS
Nonmajor Fund Descriptions
June 30, 2024
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.
110
TOWN OF TAOS
Nonmajor Fund Descriptions
June 30, 2024
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.
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. (DFA No. 6).
Library E-Rate –This is funding awarded by the New Mexico State Library through the Broadband Program to ensure
affordable broadband and high-speed internet to the library.
Local Economic Assist –This funding was awarded by the NM Economic Development Department to establish a
Local Economic Assistance and Development Program in order to facilitate recruitment, retention and creation of
economic based jobs. The project funding will be used for the programming, planning and design of a Business
Resource & Innovation Center.
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. (DFA No. 30).
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. (Resolution No. 17).
Law Enforcement Recruitment 23 –This new funding was awarded by the State of NM through the Department of
Finance to fund the cost of recruiting Law Enforcement Officers; grant funds to be disbursed to entities over a three
(3) year period. (Resolution No. 11).
DPS Law Enforcement Retention –This new funding was awarded by the NM Department of Public Safety for
retention payments issued to eligible law enforcement officers who have met the requirements set forth by the
Department of Public Safety. (Resolution No. 27).
2024 CDBG –This is a new account established under Resolution 24-11, pursuant to the compliance requirements of
the Community Development Block Grant for the purpose of updating the existing comprehensive plan with current
Land Use and Development Code information that will meet the provisions of the New Mexico Statues Annotated.
(DFA Resolution No. 19).
111
Page Left Intentionally Blank
112
TOWN OF TAOS
Nonmajor Fund Descriptions
June 30, 2024
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.
113
Cannabis Excise
Tax Fire Protection
Lodgers' Tax
Special Revenue
Fund
Assets
Cash and cash equivalents 470,772$ 776,303$ 1,268,121$
Investments - - -
Receivables:
Taxes receivable - - 159,385
Due from other governments 16,393 - -
Total assets 487,165$ 776,303$ 1,427,506$
Liabilities
Accounts payable -$ -$ 65,871$
Accrued payroll expenses - - 5,541
Deposits held in trust for others - - -
Total liabilities - - 71,412
Fund balances
Spendable
Restricted for:
General government 487,165 - -
Public safety - 776,303 -
Culture and recreation - - 1,356,094
Transportation and roads - - -
Capital improvements - - -
Debt service - - -
Committed to:
General government - - -
Public safety - - -
Culture and recreation - - -
Transportation and roads - - -
Capital improvements - - -
Total fund balances 487,165 776,303 1,356,094
Total liabilities and fund balances 487,165$ 776,303$ 1,427,506$
June 30, 2024
Combining Balance Sheet
Nonmajor Governmental Funds
TOWN OF TAOS
Special Revenue
See independent auditors' report.114
Statement A-1
Page 1 of 4
Local
Governmental
Correction
Law Enforcement
Protection Civic Center
Public
Transportation Community Grants
136,804$ 28,826$ 5,103$ 594,363$ 390,447$
- - - - -
- - - - -
- - - - 123,378
136,804$ 28,826$ 5,103$ 594,363$ 513,825$
-$ 2,131$ -$ -$ 4,174$
- - - - -
- - 5,103 - -
- 2,131 5,103 - 4,174
- - - - -
136,804 26,695 - - -
- - - - -
- - - - -
- - - - -
- - - - -
- - - - 509,651
- - - - -
- - - - -
- - - 594,363 -
- - - - -
136,804 26,695 - 594,363 509,651
136,804$ 28,826$ 5,103$ 594,363$ 513,825$
Special Revenue
See independent auditors' report.115
Municipal Road
Gasoline Tax
1/4 Cent Municipal
Gross Receipts Tax Historical District
Assets
Cash and cash equivalents -$ 832,181$ 79,376$
Investments - - -
Receivables:
Taxes receivable 17,120 249,495 -
Due from other governments - - -
Total assets 17,120$ 1,081,676$ 79,376$
Liabilities
Accounts payable -$ -$ 1,261$
Accrued payroll expenses - - -
Deposits held in trust for others - - -
Total liabilities - - 1,261
Fund balances
Spendable
Restricted for:
General government - 1,081,676 -
Public safety - --
Culture and recreation - --
Transportation and roads 17,120 - -
Capital improvements - - -
Debt service - - -
Committed to:
General government - - -
Public safety - - -
Culture and recreation - - 78,115
Transportation and roads - - -
Capital improvements - - -
Total fund balances 17,120 1,081,676 78,115
Total liabilities and fund balances 17,120$ 1,081,676$ 79,376$
TOWN OF TAOS
Special Revenue
June 30, 2024
Combining Balance Sheet
Nonmajor Governmental Funds
See independent auditors' report.116
Statement A-1
Page 2 of 4
Confidential
Informant
Emergency
Management Fund
Library E‐Rate
Grant
Local Economic
Assist
Capital
Maintenance
Operating Fund
29,828$ 12,034$ -$ -$ 1,600,131$
- - - - -
- - - - -
- - - - -
29,828$ 12,034$ -$ -$ 1,600,131$
-$ -$ -$ -$ 1,750$
- - - - -
- - - - -
- - - - 1,750
- - - - -
- 12,034 - - -
- - - - -
- - - - -
- - - - -
- - - - -
- - - - 1,598,381
29,828 - - - -
- - - - -
- - - - -
- - - - -
29,828 12,034 - - 1,598,381
29,828$ 12,034$ -$ -$ 1,600,131$
Special Revenue
See independent auditors' report.117
Grants Match Fund
Law Enforcement
Recruitment/
Retention
Law Enforcement
Recruitment 23
Assets
Cash and cash equivalents 500,000$ 27,566$ 185,546$
Investments - - -
Receivables:
Taxes receivable - - -
Due from other governments - - -
Total assets 500,000$ 27,566$ 185,546$
Liabilities
Accounts payable -$ -$ -$
Accrued payroll expenses - - 2,482
Deposits held in trust for others - - -
Total liabilities - - 2,482
Fund balances
Spendable
Restricted for:
General government 500,000 - -
Public safety - - -
Culture and recreation - - -
Transportation and roads - - -
Capital improvements - - -
Debt service - - -
Committed to:
General government - 27,566 183,064
Public safety - --
Culture and recreation - --
Transportation and roads - --
Capital improvements - --
Total fund balances 500,000 27,566 183,064
Total liabilities and fund balances 500,000$ 27,566$ 185,546$
Special Revenue
June 30, 2024
Combining Balance Sheet
Nonmajor Governmental Funds
TOWN OF TAOS
See independent auditors' report.118
Statement A-1
Page 3 of 4
DPS Law
Enforcement
Retention 2024 CDBG
Facilities
Improvements
Vehicle
Replacement
Special Events
Enterprise
-$ 5,000$ 3,188,343$ 360,710$ 377,057$
- - - - -
- - - - -
- - - - -
-$ 5,000$ 3,188,343$ 360,710$ 377,057$
-$ -$ 166,354$ -$ 489$
- - - - -
- - - - -
- - 166,354 - 489
- - - - -
- - - - -
- - - - -
- - - - -
- - - - 376,568
- - - - -
- 5,000 - - -
- - - - -
- - - - -
- - - - -
- - 3,021,989 360,710 -
- 5,000 3,021,989 360,710 376,568
-$ 5,000$ 3,188,343$ 360,710$ 377,057$
Special Revenue Capital Projects
See independent auditors' report.119
Debt Service
1994 Gross
Receipts Tax
Revenue Bond
Acquisition
1999 Gasoline Tax
Acquisition Debt
Service Fund
2008 Gross
Receipts Tax
Revenue Bond
Retirement
Assets
Cash and cash equivalents 86,503$ 1,670,856$ 6,031$
Investments 430,373 101,424 -
Receivables:
Taxes receivable - - -
Due from other governments 24,693 - -
Total assets 541,569$ 1,772,280$ 6,031$
Liabilities
Accounts payable 5,968$ 91,845$ -$
Accrued payroll expenses - - -
Deposits held in trust for others - - -
Total liabilities 5,968 91,845 -
Fund balances
Spendable
Restricted for:
General government - - -
Public safety - - -
Culture and recreation - - -
Transportation and roads - - -
Capital improvements 535,601 1,680,435 -
Debt service - - 6,031
Committed to:
General government - - -
Public safety - - -
Culture and recreation - - -
Transportation and roads - - -
Capital improvements - - -
Total fund balances 535,601 1,680,435 6,031
Total liabilities and fund balances 541,569$ 1,772,280$ 6,031$
Capital Projects
June 30, 2024
Combining Balance Sheet
Nonmajor Governmental Funds
TOWN OF TAOS
See independent auditors' report.120
Statement A-1
Page 4 of 4
Total Nonmajor
Governmental
Funds
12,631,901$
531,797
426,000
164,464
13,754,162$
339,843$
8,023
5,103
352,969
2,068,841
951,836
1,356,094
17,120
2,592,604
6,031
2,323,662
29,828
78,115
594,363
3,382,699
13,401,193
13,754,162$
See independent auditors' report.121
Cannabis Excise
Tax Fire Protection
Lodgers' Tax
Special Revenue
Fund
Revenues
Taxes:
Gross receipts -$ -$ -$
Gasoline and motor vehicle - - -
Lodgers tax - - 1,413,255
Cannabis excise tax 311,431 - -
Intergovernmental:
Federal operating grants - - -
State operating grants - 420,302 -
Charges for services - - 491
Licenses and fees - - -
Investment income - - -
Miscellaneous - - -
Total revenues 311,431 420,302 1,413,746
Expenditures
Current:
General government - - -
Public safety - 231,836 -
Public works - - -
Culture and recreation - - 1,728,320
Capital outlay - - 29,005
Debt service:
Principal - - -
Interest - - -
Total expenditures - 231,836 1,757,325
Excess (deficiency) of revenues over
expenditures 311,431 188,466 (343,579)
Other financing sources (uses)
Transfers in - - 1,040,164
Transfers (out) - - (1,300,205)
Total other financing sources (uses)- - (260,041)
Net change in fund balances 311,431 188,466 (603,620)
Fund balances ‐ beginning of year 175,734 587,837 1,959,714
Fund balances ‐ end of year 487,165$ 776,303$ 1,356,094$
Nonmajor Governmental Funds
TOWN OF TAOS
Special Revenue
For the Year Ended June 30, 2024
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances
See independent auditors' report.122
Statement A-2
Page 1 of 4
Local
Governmental
Correction
Law Enforcement
Protection Civic Center
Public
Transportation Community Grants
-$ -$ -$ -$ -$
- - - - -
- - - - -
- - - - -
- - - - 71,265
- 123,500 - - 221,538
- - - 200,000 -
14,080 - - - -
- - - - -
- - - - -
14,080 123,500 - 200,000 292,803
- - - - 81,346
82,431 105,958 - - -
- - - 766,839 -
- - - - 120,202
- - - 197,795 140,430
- - - - -
- - - - -
82,431 105,958 - 964,634 341,978
(68,351) 17,542 - (764,634) (49,175)
173,754 - - 260,041 -
- - - - -
173,754 - - 260,041 -
105,403 17,542 - (504,593) (49,175)
31,401 9,153 - 1,098,956 558,826
136,804$ 26,695$ -$ 594,363$ 509,651$
Special Revenue
See independent auditors' report.123
Municipal Road
Gasoline Tax
1/4 Cent Municipal
Gross Receipts Tax Historical District
Revenues
Taxes:
Gross receipts -$ 1,567,878$ -$
Gasoline and motor vehicle 105,301 - -
Lodgers tax - - -
Cannabis excise tax - - -
Intergovernmental:
Federal operating grants - - -
State operating grants - - -
Charges for services - - -
Licenses and fees - - 65,475
Investment income - - -
Miscellaneous - - -
Total revenues 105,301 1,567,878 65,475
Expenditures
Current:
General government - - -
Public safety - - -
Public works - - -
Culture and recreation - - 74,143
Capital outlay - - -
Debt service:
Principal - - -
Interest - - -
Total expenditures - - 74,143
Excess (deficiency) of revenues over
expenditures 105,301 1,567,878 (8,668)
Other financing sources (uses)
Transfers in 1,964 13,984 65,000
Transfers (out) (100,668) (1,336,250) -
Total other financing sources (uses)(98,704) (1,322,266) 65,000
Net change in fund balances 6,597 245,612 56,332
Fund balances ‐ beginning of year 10,523 836,064 21,783
Fund balances ‐ end of year 17,120$ 1,081,676$ 78,115$
For the Year Ended June 30, 2024
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances
Nonmajor Governmental Funds
TOWN OF TAOS
Special Revenue
See independent auditors' report.124
Statement A-2
Page 2 of 4
Confidential
Informant
Emergency
Management Fund
Library E‐Rate
Grant
Local Economic
Assist
Capital
Maintenance
Operating Fund
-$ -$ -$ -$ -$
- - - - -
- - - - -
- - - - -
- - - - -
- - - - -
- - - - -
- - - - -
- - - - -
- - 13,984 1,964 -
- - 13,984 1,964 -
- - - - 321,503
- - - - -
- - - - -
- - - - -
- - - - 144,150
- - - - -
- - - - -
- - - - 465,653
- - 13,984 1,964 (465,653)
20,000 - - - 1,123,575
- - (13,984) (1,964) -
20,000 - (13,984) (1,964) 1,123,575
20,000 - - - 657,922
9,828 12,034 - - 940,459
29,828$ 12,034$ -$ -$ 1,598,381$
Special Revenue
See independent auditors' report.125
Grants Match Fund
Law Enforcement
Recruitment/
Retention
Law Enforcement
Recruitment 23
Revenues
Taxes:
Gross receipts -$ -$ -$
Gasoline and motor vehicle - - -
Lodgers tax - - -
Cannabis excise tax - - -
Intergovernmental:
Federal operating grants - - -
State operating grants - 112,500 225,000
Charges for services - - -
Licenses and fees - - -
Investment income - - -
Miscellaneous - - -
Total revenues - 112,500 225,000
Expenditures
Current:
General government - - -
Public safety - 88,452 41,936
Public works - - -
Culture and recreation - - -
Capital outlay - - -
Debt service:
Principal - - -
Interest - - -
Total expenditures - 88,452 41,936
Excess (deficiency) of revenues over
expenditures - 24,048 183,064
Other financing sources (uses)
Transfers in - - -
Transfers (out) - - -
Total other financing sources (uses)- - -
Net change in fund balances - 24,048 183,064
Fund balances ‐ beginning of year 500,000 3,518 -
Fund balances ‐ end of year 500,000$ 27,566$ 183,064$
Special Revenue
For the Year Ended June 30, 2024
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances
Nonmajor Governmental Funds
TOWN OF TAOS
See independent auditors' report.126
Statement A-2
Page 3 of 4
DPS Law
Enforcement
Rentention 2024 CDBG
Facilities
Improvements
Vehicle
Replacement
Special Events
Enterprise
-$ -$ -$ -$ -$
- - - - -
- - - - -
- - - - -
- - - -
11,363 - - - -
- - - - 12,598
- - - - -
- - - - -
- - - - -
11,363 - - - 12,598
- - - - 271,662
11,363 - 495,719 - -
- - - - -
- - - - -
- - 705,003 272,257 -
- - - - -
- - - - -
11,363 - 1,200,722 272,257 271,662
- - (1,200,722) (272,257) (259,064)
- 5,000 2,802,425 275,669 200,000
- - - - -
- 5,000 2,802,425 275,669 200,000
- 5,000 1,601,703 3,412 (59,064)
- - 1,420,286 357,298 435,632
-$ 5,000$ 3,021,989$ 360,710$ 376,568$
Capital ProjectsSpecial Revenue
See independent auditors' report.127
Debt Service
1994 Gross
Receipts Tax
Revenue Bond
Acquisition
1999 Gasoline Tax
Acquisition Debt
Service Fund
2008 Gross
Receipts Tax
Revenue Bond
Retirement
Revenues
Taxes:
Gross receipts -$ -$ -$
Gasoline and motor vehicle - - -
Lodgers tax - - -
Cannabis excise tax - - -
Intergovernmental:
Federal operating grants - - -
State operating grants - - -
Charges for services 8,400 - -
Licenses and fees - - -
Investment income 23,461 5,260 -
Miscellaneous 24,693 18,307 -
Total revenues 56,554 23,567 -
Expenditures
Current:
General government 84,146 - -
Public safety - - -
Public works - 30,137 -
Culture and recreation - - -
Capital outlay - 1,463,362 -
Debt service:
Principal - - 485,000
Interest - - 63,630
Total expenditures 84,146 1,493,499 548,630
Excess (deficiency) of revenues over
expenditures (27,592) (1,469,932) (548,630)
Other financing sources (uses)
Transfers in - 1,195,033 551,000
Transfers (out) - - -
Total other financing sources (uses)- 1,195,033 551,000
Net change in fund balances (27,592) (274,899) 2,370
Fund balances ‐ beginning of year 563,193 1,955,334 3,661
Fund balances ‐ end of year 535,601$ 1,680,435$ 6,031$
Capital Projects
For the Year Ended June 30, 2024
Nonmajor Governmental Funds
TOWN OF TAOS
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances
See independent auditors' report.128
Statement A-2
Page 4 of 4
Total Nonmajor
Governmental
Funds
1,567,878$
105,301
1,413,255
311,431
71,265
1,114,203
221,489
79,555
28,721
58,948
4,972,046
758,657
1,057,695
796,976
1,922,665
2,952,002
485,000
63,630
8,036,625
(3,064,579)
7,727,609
(2,753,071)
4,974,538
1,909,959
11,491,234
13,401,193$
See independent auditors' report.129
Page Left Intentionally Blank
130
S UPPORTING SCHEDULES
131
Account Bank Deposits Outstanding Book
Bank Name/Account Name Type Balance in Transit Checks Balance
US Bank
Clearing Account *Checking 1,495,668$ -$ 1,495,663$ 5$
Judicial Bond Fund Municipal Court Checking 9,868 - - 9,868
Water & Sewer System Income Fund *Checking 6,294,129 30,323 4,090 6,320,362
Total US Bank 7,799,665 30,323 1,499,753 6,330,235
Centinel Bank
General Fund *Checking 27,381,953 27,392 - 27,409,345
Affortable Housing Fund *Checking 97,228 5,748 16,974 86,002
Enterprise Investment Account *Checking 4,169,925 - - 4,169,925
Community Development Block Grant *Checking 5,000 - - 5,000
Water Wastewater Improvements Fund *Checking 627,949 - 17,595 610,354
ACH Transfer Account Checking 113,479 - 113,492 (13)
Payroll Clearing *Checking 70,316 - 70,297 19
Total Centinel Bank 32,465,850 33,140 218,358 32,280,632
Bank balance of deposits 40,265,515$ 63,463$ 1,718,111$ 38,610,867$
New Mexico Finance Authority‐Investment
Taos 49 - Debt Service Funds 1,868,342$ -$ -$ 1,868,342$
Taos 49 - Debt Service Reserve Funds Funds 22,745 - - 22,745
Taos 85 - Program Funds Funds 210,690 - - 210,690
Total New Mexico Finance Authority 2,101,777 - - 2,101,777
* Interest bearing Bank Accounts
TOWN OF TAOS
Schedule of Deposit and Investment Accounts
June 30, 2024
See independent auditors' report.132
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 5,101,777 - - 5,101,777
Total 45,367,292$ 63,463$ 1,718,111$ 43,712,644
Add: New Mexico State Treasurer Local Government Investment Pool 4,149,964
Add: petty cash 1,459
Total deposits and investments 47,864,067$
Deposits and investments per financial statements:
Cash and cash equivalents - Exhibit A-1 38,472,356$
Investments - Exhibit A-1 7,025,459
Restricted cash and cash equivalents - Exhibit A-1 2,141,969
Restricted investments - Exhibit A-1 124,500
Fiduciary funds cash - Exhibit E-1 99,783
Total cash, cash equivalents, and investments 47,864,067$
See independent auditors' report.133
Fair Market
Name of Description of CUSIP Value at
Depository Pledged Collateral Maturity Number June 30, 2024
US Bank
FHLB N/A LOC NO. 575258 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
Clovis NM Municipal Sch Dist 2.25%08/01/32 189414PN9 325,000
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 568,413
FHMS K091 A2 3.51%03/25/29 3137FLN91 284,207
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 1,615,236
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 962,724
FHMS KG05 A2 2.000%01/25/31 3137FFXL6 847,774
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 579,172
NEW MEXICO FINANCE AUTH REV 5.000%06/01/34 64711PHB9 1,697,749
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
NEW MEXICO FINANCE AUTH REV 5.000%06/15/32 64711PGH7 525,000
FHLMC POOL 1.50%12/01/31 3133LPY80 1,496,488
FNMA POOL 2.98%12/01/27 3138LLMA0 1,882,580
SBAP 2022-20A1 1.84%01/01/42 83162CN25 1,505,340
Ruidoso SD 4.00%08/01/27 781338MR6 265,000
TOWN OF TAOS
Schedule of Collateral Pledged by Depository
For Public Funds
June 30, 2024
134
Schedule II
Fair Market
Name of Description of CUSIP Value at
Depository Pledged Collateral Maturity Number June 30, 2024
Centinel Bank (continued)
CFGMS 2022-25A Variable 01/16/25 14021PAA8 986,144
SBA #522666 Variable 03/25/32 83165BFF4 1,112,383
SBIC 2021-10b 1 1.304%09/10/31 831641FS9 1,684,773
FHMS KF75 5.956%12/25/29 3137FREN7 528,452
Clovis NM ISO 3.00%08/01/34 189414QE8 175,000
Total Centinel Bank 32,646,435
The location of the safekeeper of the above securities is Independent Bankers Bank, Dallas, TX
Total Pledged Collateral 43,646,435$
See independent auditors' report.135
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136
C OMPLIANCE SECTION
137
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. CFE
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
comparisons for the General Fund and major special revenue fund of the Town of Taos (the Town), as of and
for the year ended June 30, 2024, 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, 2024.
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.
138
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, 2024
139
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140
F EDERAL FINANCIAL ASSISTANCE
141
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, 2024. 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, 2024.
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.
142
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
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.
143
A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in
internal control over compliance with a type of compliance requirement of a federal program that is less
severe than a material weakness in internal control over compliance, yet important enough to merit attention
by those charged with governance.
Our consideration of internal control over compliance was for the limited purpose described in the 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. Given these limitations, during our audit we did not identify any deficiencies in
internal control over compliance that we consider to be material weaknesses, as defined above. However,
material weaknesses or significant deficiencies in internal control over compliance may exist that were not
identified.
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.
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, 2024
144
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145
Federal
Assistance
Listing
Number
Federal
Expenditures
Funds
Provided to
Subrecipients
Noncash
Assistance
U.S. Department of the Interior - Bureau of Reclamation
Implementation of the Taos Pueblo Indian Water Rights Settlement 15.565 *539,874$ - -
Total U.S Department of the Interior - Bureau of Reclamation 539,874 - -
U.S. Department of Justice
Passed through State of New Mexico, Department of Public Safety
Taos County Juvenile Accountability Block Grant 16.523 71,265 - -
Total U.S. Department of Justice 71,265 - -
U.S. Department of Transportation
Passed through NM Department of Transportation
Federal Aviation Administration (FAA) Airport Improvement Grant
Taxiway-A PER, Phase I Design 20.106 106,351 - -
Total U.S. Department of Transportation 106,351 - -
U.S. Department of the Treasury
Passed through the New Mexico Department of Finance & Administration
Coronavirus State and Local Fiscal Recovery Fund 21.027 195,898 - -
Total U.S Department of the Treasury 195,898 - -
Total Federal Financial Assistance 913,388$ -$ -$
* Denotes Major Federal Financial Assistance Program
TOWN OF TAOS
Schedule of Expenditures of Federal Awards
For the Year Ended June 30, 2024
Federal Grantor or Pass-Through
Grantor / Program Title
See independent auditors' report.
See accompanying notes to schedule of expenditures of federal awards.146
Schedule III
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.147
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148
TOWN OF TAOS Schedule IV
Schedule of Findings and Questioned Costs Page 1 of 2
June 30, 2024
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?None noted
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)? None note
4.Identification of major programs:
Assistance Listing
Number Federal Program
15.565 Implementation of the Taos
Pueblo Indian Water Rights Settlement
5.Dollar threshold used to distinguish between type A and type B programs:$750,000
6.Auditee qualified as low-risk auditee?No
149
TOWN OF TAOS Schedule IV
Schedule of Findings and Questioned Costs Page 2 of 2
June 30, 2024
Section II –Financial Statement Findings
None noted
Section III –Federal Award Findings
None noted
Section IV –Section 12-6-5 NMSA 1978 Findings
None noted
Section V –Prior Year Audit Findings
2023-001 —Reporting– (Significant Deficiency)-Resolved
150
TOWN OF TAOS
Other Disclosures
June 30, 2024
Exit Conference
An exit conference was held on December 12, 2024. In attendance were the following:
Representing the Town of Taos:
Marietta S. Fambro – Town Councilor
Lupe E. Martinez – Town Manager
Mark T. Flores II – Assistant Town Manager
Jonathan Montoya – Finance Director
Josephine Fresquez –Deputy Finance Director
HD “Skip” Pedlar, 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.
151