2010 Audit ReportSTATE OF NEW MEXICO
TOWN OF TAOS
ANNUAL FINANCIAL REPORT
JUNE 30, 2010
(This page intentionally left blank)
2
INTRODUCTORY SECTION
3
STATE OF NEW MEXICO
Town of Taos
Table of Contents
June 30, 2010
Exhibit Page
INTRODUCTORY SECTION
Table of Contents 4-5
Official Roster 7
FINANCIAL SECTION
Independent Auditors’ Report 10-11
Management’s Discussion and Analysis 12-19
BASIC FINANCIAL STATEMENTS
Government-wide Financial Statements
Statement of Net Assets A-1 22-23
Statement of Activities A-2 24-25
Fund Financial Statements
Balance Sheet – Governmental Funds B-1 26
Reconciliation of the Balance Sheet to the Statement of Net Assets 27
Statement of Revenues, Expenditures, and
Changes in Fund Balances – Governmental Funds B-2 28
Reconciliation of the Statement of Revenues, Expenditures, and
Changes in Fund Balances of Governmental Funds to the
Statement of Activities 29
Statement of Revenues, Expenditures and Changes in Fund Balance
Budget (GAAP Basis) and Actual
General Fund C-1 31
Statement of Net Assets-Proprietary Funds D-1 32-33
Statement of Revenues, Expenses, and
Changes in Fund Net Assets-Proprietary Funds D-2 34-35
Statement of Cash Flows –Proprietary Funds D-3 36-37
Statement of Fiduciary Assets and Liabilities – Agency Funds E-1 39
NOTES TO THE FINANCIAL STATEMENTS 40-65
SUPPLEMENTARY INFORMATION
Statement
Nonmajor Governmental Fund Descriptions 68-71
COMBINING AND INDIVIDUAL FUND STATEMENTS AND SCHEDULES
Combining Balance Sheet – Nonmajor Governmental Funds A-1 72-76
Combining Statement of Revenues, Expenditures, and Changes in
Fund Balances – Nonmajor Governmental Funds A-2 77-81
Statement of Revenues, Expenditures, and Chan ges in Fund Balance –
Budget (GAAP Basis) and Actual
Governmental Funds:
Fire Protection Special Revenue Fund B-1 82
Recreation Special Revenue Fund B-2 83
Lodger’s Tax Special Revenue Fund B-3 84
Local Government Correction Special Revenue Fund B-4 85
Law Enforcement Protection Special Revenue Fund B-5 86
Civic Center Special Revenue Fund B-6 87
Domestic Violence Shelter Special Revenue Fund B-7 88
Public Transportation Special Revenue Fund B-8 89
Community Grants Special Revenue Fund B-9 90
Municipal Road Gasoline Tax Special Revenue Fund B-10 91
¼ Cent Municipal Gross Receipts Tax Special Revenue Fund B-11 92
4
STATE OF NEW MEXICO
Town of Taos
Table of Contents
June 30, 2010
SUPPLEMENTARY INFORMATION (CONTINUED))
Statement/Schedule Page
Communications Special Revenue Fund B-12 93
2001 Gross Receipts Tax Revenue Bond Retirement Debt Service Fund B-13 94
2008 Gross Receipts Tax Revenue Bond Retirement Debt Service Fund B-14 95
1999 Gasoline Tax Revenue Bond Retirement Debt Service Fund B-15 96
1999 Gasoline Tax Revenue Bond Reserve Debt Service Fund B-16 97
2007 NMFA Land Purchase Debt Service Fund B-17 98
Facilities Improvements Capital Projects Fund B-18 99
Airport Construction Capital Projects Fund B-19 100
Enhanced 911 Capital Projects Fund B-20 101
Vehicle Replacement Capital Projects Fund B-21 102
1994 Gross Receipts Tax Revenue Bond Acquisition Capital Projects Fund B-22 103
1999 Gasoline Tax Acquisition Capital Projects Fund B-23 104
Capital Pr ojects Fund B-24 105
Statement of Revenues, Expenses, and Changes in Net Assets –
Budget (Non-GAAP Basis) and Actual –Pr opr ietary Funds
Water and Sewer Fund B-25 106
Solid Waste Fund B-26 107
Taos Regional Landfill Fund B-27 108
SUPPORTING SCHEDULES
Schedule of Deposit and Investment Accounts I 110
Schedule of Collateral Pledged by Depositor y for Public Funds II 111
Schedule of Changes in Fiduciary Assets and Liabilities - Agency Funds III 113
Schedule of Joint Powers Agreements IV 114-115
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 118-119
FEDERAL FINANCIAL ASSISTANCE
Report on Compliance with Requirements That Could Have a Direct and Material
Effect on Each Major Pr ogram and on Internal Control Over Compliance in
Accordance with OMB Circular A-133 122-123
Schedule of Expenditures of Federal Awards V 124-125
Schedule of Findings and Questioned Costs VI 126-131
OTHER DISCLOSURES 133
5
(This page intentionally left blank)
6
STATE OF NEW MEXICO
Town of Taos
Official Roster
June 30, 2010
Town Council
Name Title
Darren Cordova Mayor
Michael A. Silva Councilor
Rudy Abeyta Councilor
Amy Quintana Councilor
Gene Sanchez Councilor
Administration
Daniel Miera Town Manager
Abigail Adame Assistant Town Manager
Marietta Fambro Finance Director
Renee Lucero Town Clerk
Richard Chavez Municipal Judge
Allen Ferguson Town Attorney
7
(This page intentionally left blank)
8
FINANCIAL SECTION
9
INDEPENDENT AUDITORS’ REPORT
Hector Balderas
New Mexico State Auditor
The United States Office of Management and Budget and
The Town Council
Town of Taos
Taos, New Mexico
We have audited the accompanying financial statements of the governmental activities, the business-type activities, each major
fund, the budgetary comparison for the general fund and the aggregate remaining fund information of the Town of Taos New
Mexico (“the Town”), as of and for the ye ar ended June 30, 2010, which collectively comprise the Town’s basic financial
statements as listed in the table of contents. We also have audited the financial statements of each of the Town’s nonmajor
governmental funds and the budgetary comparisons of the proprietar y funds, the capital projects fund and the remaining nonmajor
governmental funds presented as supplementary information in the accompanying combining and individual fund financial
statements as of and for the ye ar ended June 30, 2010 as listed in the table of contents. These financial statements are the
responsibility of the Town’s management. Our responsibility is to express opinions on these financial statements based on our
audit.
We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the
standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the
United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit includes consideration of internal control over financial reporting
as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an
opinion on the effectiveness of the Town’s internal control over financial reporting. Accordingly, we express no such opinion.
An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements,
assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audit provides a reasonable basis for our opinions.
In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the
governmental activities, the b usiness-type activities, each major fund, and the aggregate remaining fund information of the Town
of Taos, New Mexico, as of June 30, 2010, and the respective changes in financial position and cash flows, where applicable,
thereof and the budgetar y comparison for the general fund for the ye ar then ended in conformity with accounting principles
generally accepted in the United States of America. In addition, in our op inion, the financial statements referred to above present
fairly, in all material respects, the respective financial position of each nonmajor governmental fund of the Town as of June 30,
2010, and the r espective changes in financial position thereof,and the budgetary comparisons for the proprietary funds, the capital
projects fund and the remaining nonmajor governmental funds p resented as supplementary information for the ye ar then ended in
conformity with accounting principles generally accepted in the United States of America.
10
In accordance with Government Auditing Standards, we have also issued our report dated November 22, 2010 on our
consideration of the Town’s internal control over financial reporting and on our tests of its compliance with certain provisions of
laws, regulations, contracts and grant agreements and other matters. The purpose of that report is to describe the scope of our
testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on
the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance
with Government Auditing Standards and should be considered in assessing the results of our audit.
The Management’s Discussion and Analysis on pages 12 through 19 ar e not a required part of the basic financial statements but
are supplementary information required by accounting principles generally accepted in the United States of America. We have
applied certain limited procedures, which consisted principally of inquiries of management regarding the methods of
measurement and presentation of the required supplementary information. H owever, we did not audit the information and express
no opinion on it.
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Town’s
basic financial statements, the combining and individual fund financial statements, and the budgetar y comparisons. The
accompanying Schedule of Expenditures of Federal Awards is presented for purposes of additional analysis as required b y the
U.S. Office of Management and Budget Circular A-133, Audits of State, Local Governments, and Non-Profit Organizations, a nd
is not a required part of the basic financial statements. T he accompanying financial information listed as supporting Schedules I
through IV in the table of contents is presented for purposes of additional analysis and is not a required part of the financial
statements. S uch information has been subjected to the auditing procedures applied in the audit of the basic financial statements
and the combining and individual fund statements and budgetary comparisons listed above a nd, in our opinion, are fairly stated i n
all material respects i n relation to the basic financial statements,and the combining and individual fund statements and budgetary
comparisons t aken as a whole. T he introductor y section has not been subjected to the auditing procedures applied in the audit of
the basic financial statements and, accordingly, we express no opinion on it.
Accounting & Consulting Group, LLP
Albuquerque, NM
November 22, 2010
11
State of New Mexico
Town of Taos
Management’s Discussion and Analysis
June 30, 2010
As management of the Town of Taos, we offer readers of the Town of Taos financial statements, this narrative overview and
analysis of the financial activities of the Town of Taos for the fiscal year ended June 30, 2010. We encourage readers to consider
the information presented here in conjunction with the financial statements of the Town of Taos and additional information
provided.
FINANCIAL HIGHLIGHTS
• The assets of the Town of Taos exceeded its liabilities at the close of the most recent fiscal year by $74,248,827 (net
assets). Of this amount, $6,616,350(unrestricted net assets) may be used to meet the government’s ongoing obligations
to citizens and creditors.
• The government’s total net assets increased by $2,066,257 during the fiscal year. The majority of this increase is due to
additional capital assets (Pediatric Clinic) and revenue from loan proceeds for our Eco Park project for the year ended
June 30, 2010.
• As of June 30, 2010, the Town’s governmental funds reported combined ending net assets balances of $52,711,914. Of
this total, $5,920,741 is designated for debt service and capital projects.
• At the close of the current fiscal year, unreserved, undesignated fund balance for the general fund was $2,759,174, or 40
percent of total general fund expenditures.
• The Town of Taos’ total debt increased by $3,077,985 during the current fiscal year. The key factor in this increase was
the loan proceeds of $3,112,408 in the Town’s governmental activities and also loan proceeds of $2,213,469 in
governmental activities and $1,730,000 in business-type activities . Also during the year $968,695 was paid on the
principal of the various government loans, bonds, compensated absences and contracts payable.
Overview of the Financial Statements
This discussion and analysis is intended to serve as an introduction to the Town of Taos’ basic 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 assets presents information on all of the Town of Taos’ assets and liabilities, with the difference between the
two reported as net assets. Over time, increases or decreases in net assets may serve as a useful indicator of 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 assets changed during the most recent fiscal
year. All changes in net assets 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.
12
State of New Mexico
Town of Taos
Management’s Discussion and Analysis
June 30, 2010
Fund financial statements. A fund is a grouping of related accounts that is used to maintain control over resources that have
been segregated for specific activities or objectives. The Town of Taos, like other state and local governments, uses fund
accounting to ensure and demonstrate compliance with finance-related legal requirements. All of the funds of the Town of Taos
can be divided into three categories: governmental funds, proprietary funds, and fiduciary funds.
Governmental Funds. Governmental funds are used to account for essentially the same functions reported as governmental
activities in the government-wide financial statements. However, unlike the government-wide financial statements, governmental
fund financial statements focus on daily inflows and outflows of spendable resources, as well as on balances of spendable
resources available at the end of the fiscal year. Such information may be useful in determining what financial resources are
available in the near future to finance the Town’s programs.
Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to
compare the information presented for governmental funds with similar information presented for governmental activities in the
government-wide financial statements. By doing so, readers may better understand the long-term impact of the government’s near
term financing decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues,
expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and
governmental activities.
The Town of Taos maintains twenty-nine individual governmental funds organized according to their type (special revenue, debt
service and capital projects). Information is presented separately in the governmental fund balance sheet and statement of
revenues, expenditures, and changes in fund balances for the General Fund and Capital Projects, which are considered major
funds. Data from the other twenty-seven governmental funds are combined into a single, aggregated presentation. Individual
fund data for each of these nonmajor governmental funds is provided in the form of combining statements elsewhere in this report.
The Town of Taos adopts an annual appropriated budget for its general fund, capital equipment replacement special revenue fund,
fire, police, CRT, and Town hall capital projects fund, 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 collection of street cut permits and deposits for reaction events. The basic
fiduciary fund financial statement can be found in Exhibit E-1 of this report.
Notes to the financial statements. The notes provide additional information that is essential to a full understanding of the data
provided in the government-wide and fund financial statements. The notes to the financial statements can be found on pages 40-
65 of this report.
13
State of New Mexico
Town of Taos
Management’s Discussion and Analysis
June 30, 2010
Combining statements. The combining statements referred to earlier in connection with nonmajor governmental funds are
presented immediately following the notes to the financial statements. Combining and individual fund statements and schedules
can be found on pages 68-83 of this report.
GOVERNMENT-WIDE FINANCIAL ANALYSIS
Analysis of Net Assets
As noted earlier, net assets 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 $74,248,827 at the close of the current fiscal year.
The significant portion of the Town of Taos’ net assets represents the Town’s investment of $60,270,380 in capital assets (e.g.,
land improvements, buildings, infrastructure and machinery & equipment), less any related outstanding debt used to acquire those
assets. The Town of Taos uses these capital assets to provide services to citizens; consequently, these assets are not available for
future spending. Although the Town of Taos’ investment in its capital assets is reported net of related debt, it should be noted that
the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to
liquidate these liabilities.
Governmental Business-Type
Activities Activities Total
Assets
Current and other assets 7,844,671$ 6,576,093$ 14,420,764$
Restricted cash and cash equivalents 1,982,949 1,233,536 3,216,485
Bond issuance costs and discount 191,887 - 191,887
Capital assets, net of accumulated 53,726,037 21,782,829 75,508,866
depreciation
Total assets 63,745,544 29,592,458 93,338,002
Liabilities
Current Liabilities 1,902,366 2,145,969 4,048,335
Non-current liabilities 9,131,264 5,909,576 15,040,840
Total liabilities 11,033,630 8,055,545 19,089,175
Net Assets
Invested in capital assets, net of 44,241,055 16,029,325 60,270,380
related debt
Restricted 6,128,561 1,233,536 7,362,097
Unrestricted 2,342,298 4,274,052 6,616,350
Total net assets 52,711,914$ 21,536,913$ 74,248,827$
Total Liabilities and Net Assets 63,745,544$ 29,592,458$ 93,338,002$
A portion of the Town of Taos’ governmental net assets (8 percent) represents resources that are subject to restrictions. The
restrictions relate to covenants provided by the Town’s long-term debt issuance and capital projects. The remaining balance of
unrestricted net assets, $2,342,298 may be used to meet the government’s ongoing obligations to citizens and creditors.
At the end of the current fiscal year, the Town of Taos is able to report positive balances in all three categories of net assets, for
the government as a whole as well as for the business-type activities, as a whole.
14
State of New Mexico
Town of Taos
Management’s Discussion and Analysis
June 30, 2010
Analysis of Changes in Net Assets
The Town’s net assets increased by $2,066,257 during the current fiscal year. These increases are explained in the government
and business-type activities discussion below, and are primarily a result of increased revenues from gross receipts taxes and
capital grants while reducing the Town’s expenditures during the fiscal year.
Governmental Business-type
Revenues Activities Activities Total
Program revenues:
Charges for service 1,185,890$ 4,303,931$ 5,489,821$
Operating grants and contributions 1,091,166 - 1,091,166
Capital grants and contributions 3,260,706 1,283,005 4,543,711
General revenues:
Property taxes, levied for general purposes 824,507 - 824,507
Gross receipts taxes 10,671,570 544,611 11,216,181
Gasoline and auto distribution taxes 310,526 - 310,526
Other taxes 1,436,096 - 1,436,096
Interest income 19,067 29,374 48,441
Miscellaneous income 114,802 120,268 235,070
Transfers (76,930) 76,930 -
Loss on disposal of capital assets (93) - (93)
Total Revenues 18,837,307 6,358,119 25,195,426
Program expenses:
General government 6,107,535$ - 6,107,535$
Public safety 3,851,290 - 3,851,290
Public works 3,329,397 - 3,329,397
Culture and recreation 3,093,871 - 3,093,871
Health and welfare 646,369 - 646,369
Interest on long-term debt 341,433 - 341,433
Joint water and sewer - 3,552,568 3,552,568
Solid waste - 1,156,439 1,156,439
Taos Regional Landfill - 1,050,267 1,050,267
Total Expenses 17,369,895 5,759,274 23,129,169
Change in net assets 1,467,412 598,845 # 2,066,257
Net assets, beginning 51,244,502 20,938,068 72,182,570
Net assets, ending 52,711,914$ 21,536,913$ 74,248,827$
Governmental activities. Governmental activities increased the Town of Taos’ net assets by $1,467,412. The key elements of
this increase are as follows:
• Tax revenues account for $13,242,699 or 70 percent of governmental revenues. Tax revenues are made up of property,
gross receipts, gasoline and motor vehicle and other taxes.
• The General fund received the majority of the Town’s program revenue, accounting for $5,537,762 or 29 percent of
total governmental revenues. The primary recipients of these revenues are general government and public safety.
• The Town’s direct charges to users of governmental services made up $1,091,166 or 7 percent of total governmental
revenues. These charges are for fees, fines and forfeitures, and licenses and permits.
15
State of New Mexico
Town of Taos
Management’s Discussion and Analysis
June 30, 2010
• The increase in revenues is because of operating and capital grants increasing and fair economic conditions within the
Town, which have increased gross receipts slightly. Also, other taxes such as property and gas taxes have increased
from the prior year.
Business-type activities. Business-type activities increased the Town’s net assets by $598,845. The Town received the capital
grants this year and due to a drop in expenditures and increased gross receipts taxes, along with capital and operating grants, the
Town generated excess revenue over expenditures.
FINANCIAL ANALYSIS OF THE TOWN’S FUNDS
As noted earlier, 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, unreserved 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 $18,837,307 in the fiscal year ended June 30, 2010, which
represents an increase of $1,864,104 from the fiscal year ended June 30, 2009. This is largely due to the increase in federal and
state operating and capital grants. Expenditures for governmental functions, totaling $17,369,895, decreased by approximately
$545,322 from the fiscal year ended June 30, 2009. This is largely due to the completion of a $6,000,000 Town Hall project in
fiscal year 2009. In the fiscal year ended June 30, 2010, expenditures for governmental functions exceeded revenues by
approximately $1,467,412.
The General Fund is the chief operating fund of the Town of Taos. At the end of the current fiscal year, unreserved fund balance
of the general fund was also the total fund balance of $2,759,174.
The fund balance of the Town of Taos’ general fund increased by $655,314 during the current fiscal year, due to an increase in
revenue and a decrease in expenditures. Overall, the general fund’s performance resulted in revenues over expenditures in the
fiscal year ended June 30, 2010 of $655,314, an increase of $934,753 over the comparable figure from the prior year of
$(279,439).
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 assets for enterprise funds were $4,433,052. The total increase in net assets for
the enterprise funds was $598,845. Factors concerning the finances of this fund have been addressed previously in the discussion
of the Town’s business-type activities.
Fiduciary Funds. The Town maintains fiduciary funds for the assets associated with bid bonds, street cuts permits and recreation
deposits. Changes to the fiduciary funds were immaterial for the fiscal year.
General Fund Budgetary Highlights
Town budgets reflect the same pattern as seen in the revenue and expenditures of the Town. The State of New Mexico budget
process is defined under state law and regulation. To enhance the process of developing a budget at the Town level, Taos utilizes
goals and objectives defined by the Town Council, community input meetings, long term plans and input from various staff
groups to develop the Town budget. Town priorities are well defined through this process.
GASB Statement No. 34 does not require a statement presenting the overall result of the budget for each year; however, all major
budgetary funds are required to be reported as a separate statement.
The following table examines the summary budget performance of the general fund for the fiscal year ending June 30, 2010.
Detailed budget performance is examined through the Statement of Revenues, Expenditures, and Changes in Fund Balance for the
16
State of New Mexico
Town of Taos
Management’s Discussion and Analysis
June 30, 2010
General Fund Budgetary Highlights (Continued)
general fund found at Exhibit C-1. The Town’s final budget differs from the original budget due to budget increases and
decreases that were made during the fiscal year and expenditures not needed. Actual general fund expenditures were $396,478
less than the final budget amount (favorable variance). This was primarily to general governmental favorable variance of
$233,818. The difference between actual expenditures and budgeted expenditures is due to various expenditures that were
expected to occur during the year ended June 30, 2010, but savings from personnel vacancies and cost saving measures caused
this favorable variance.
Budget Amounts
Original Final
Expenditures:
General government 4,372,081$ 4,256,005$ 4,022,187$ 233,818$
Public safety 3,033,039 2,914,670 2,829,727 84,943
Public works 1,119,748 1,034,103 1,032,020 2,083
Culture and recreation 2,101,984 2,009,566 1,933,932 75,634
Total Expenditures 10,626,852$ 10,214,344$ 9,817,866$ 396,478$
Actual (GAAP
Basis)
Favorable
(Unfavorable)
Variance
Capital Asset and Debt Administration
Capital assets. The Town of Taos’ capital assets for its governmental and business-type activities as of June 30, 2010 amount to
$75,508,866 (net of accumulated depreciation). Capital assets include land, land improvements, buildings and improvements,
furniture, fixtures and equipment, and infrastructure. The total in the Town’s capital assets for the current fiscal year was an
increase of $1,530,338 for governmental activities and an increase of $1,971,140 for business-type activities.
The significant additions to capital assets during the year were as follows:
• $3,375,077 were additions to governmental buildings and improvements for completion of the Pediatric Clinic, Taos
Community Auditorium, Fire Station #2, and Rio Grande Hall HVAC.
• $877,384 were additions to governmental machinery and equipments for completion of a Composting Facility and Cell
2B & 3A at the Taos Regional Landfill.
• $2,113,095 additions to business type construction in progress for upgrades to the Wastewater Treatment Plant.
17
State of New Mexico
Town of Taos
Management’s Discussion and Analysis
June 30, 2010
Capital assets, net of depreciation
Governmental Business-like
Activities Activities Total
Land 6,277,809$ 262,422$ 6,540,231$
Constuction in progress 7,501,644 2,635,438 10,137,082
Buildings and improvements 27,221,556 4,305,980 31,527,536
Machinery and Equipment 15,242,273 8,452,022 23,694,295
Infrastructure 46,367,444 20,108,528 66,475,972
Land improvements 5,068,985 104,895 5,173,880
Total capital assets 107,679,711 35,869,285 143,548,996
Less: accumulated depreciation (53,953,674) (14,086,456) (68,040,130)
Total property, plant and equipment, net
of accumulated depreciation 53,726,037$ 21,782,829$ 75,508,866$
For government-wide financial statement presentation, all depreciable capital assets were depreciated from acquisition date to the
end of the current fiscal year. Fund financial statements record capital asset purchases as expenditures. See Note 6 in the
accompanying Notes to the Financial Statements for further information regarding capital assets.
Debt Administration. At the end of the current fiscal year, the Town of Taos had total long-term obligations outstanding of
$16,275,339.
The significant additions to long term debt during the year were as follows:
• $2,213,469 addition for a NMFA loan for the construction of Phase I of a Multi-Phased Recreation Park;
• $1,000,000 addition for a NMED ARRA CWSRF loan for Phase 2 and Phase 3 of the Wastewater Treatment Plant
Rehabilitation project.
Outstanding debt
Governmental Business-type
Activities Activities Total
Revenue Bonds 6,545,000$ 2,139,600$ 8,684,600$
NMFA amd RUS Loans 2,939,982 3,613,904 6,553,886
USDA Contract Payable - - -
Compensated absences 646,610 64,390 711,000
Landfill Closure Liability - 480,190 480,190
Total long-term liabilities 10,131,592$ 6,298,084$ 16,429,676$
See Note 7 in the accompanying Notes to the Financial Statements for further information regarding the Town of Taos’ long-term
debt.
The Town knows of no currently known facts, decisions or conditions that are expected to have a significant effect on financial
position or results of operations.
18
State of New Mexico
Town of Taos
Management’s Discussion and Analysis
June 30, 2010
REQUESTS FOR INFORMATION
This financial report is designed to provide a general overview of the Town of Taos’ finances for all of those with an interest in the
government’s finances. Questions concerning any of the information provided in this report or requests for additional financial
information should be addressed to the Town of Taos – Finance Director, Town of Taos, 400 Camino de la Placita, Taos, New
Mexico, 87571, (575) 751-2024.
19
(This page intentionally left blank)
20
BASIC
FINANCIAL STATEMENTS
21
Governmental
Activities
Business-type
Activities Total
Assets
Current assets
Cash and cash equivalents 1,102,120$ 3,148,300$ 4,250,420$
Investments 3,462,425 1,631,164 5,093,589
Receivables:
Property taxes 204,811 - 204,811
Other taxes 2,023,756 - 2,023,756
Due from other governments 1,078,207 1,166,171 2,244,378
Customer receivables, net - 603,810 603,810
Internal balances (26,648) 26,648 -
Total current assets 7,844,671 6,576,093 14,420,764
Noncurrent assets
Restricted cash and cash equivalents 1,982,949 1,233,536 3,216,485
Bond issuance costs, net of accumulated
amortization of $25,542 191,887 - 191,887
Capital assets 107,679,711 35,869,285 143,548,996
Less: accumulated depreciation (53,953,674) (14,086,456) (68,040,130)
Total noncurrent assets 55,900,873 23,016,365 78,917,238
Total assets 63,745,544$ 29,592,458$ 93,338,002$
STATE OF NEW MEXICO
Primary Government
The accompanying notes are an integral part of these financial statements
June 30, 2010
Statement of Net Assets
Town of Taos
22
Exhibit A-1
Governmental
Activities
Business-type
Activities Total
Liabilities
Current liabilities
Accounts payable 684,469$ 1,436,930$ 2,121,399$
Accrued payroll 99,950 11,372 111,322
Deposits held in trust for others 4,853 241,564 246,417
Accrued compensated absences 411,536 50,940 462,476
Accrued interest 51,262 67,595 118,857
Current portion of bonds payable 415,000 41,000 456,000
Current portion of loans and contracts payable 235,296 296,568 531,864
Total current liabilities 1,902,366 2,145,969 4,048,335
Noncurrent liabilities
Accrued compensated absences 235,074 13,450 248,524
Accrued landfill closure costs - 480,190 480,190
Bond premiums, net of accumulated
amortization of $9,338 61,504 - 61,504
Bonds payable 6,130,000 2,098,600 8,228,600
Loans and contracts payable 2,704,686 3,317,336 6,022,022
Total noncurrent liabilities 9,131,264 5,909,576 15,040,840
Total liabilities 11,033,630 8,055,545 19,089,175
Net Assets
Invested in capital assets, net of related debt 44,241,055 16,029,325 60,270,380
Restricted for:
Debt service 309,478 1,233,536 1,543,014
Capital projects 4,377,727 - 4,377,727
Special revenue 1,441,356 - 1,441,356
Unrestricted 2,342,298 4,274,052 6,616,350
Total net assets 52,711,914$ 21,536,913$ 74,248,827$
Primary Government
23
Functions/Programs
Expenses
Charges for
Services
Operating
Grants and
Contributions
Capital Grants
and
Contributions
Primary Government
Governmental Activities:
General government 6,107,535$ 1,060,803$ 384,591$ -$
Public safety 3,851,290 - 236,430 -
Public works 3,329,397 7,500 - 3,260,706
Culture and recreation 3,093,871 63,012 - -
Health and welfare 646,369 54,575 470,145 -
Interest on long-term debt 341,433 - - -
Total governmental activities 17,369,895 1,185,890 1,091,166 3,260,706
Business-type Activities:
Water and sewer 3,552,568 2,094,498 - 1,283,005
Solid waste 1,156,439 1,179,800 - -
Taos regional landfill 1,050,267 1,029,633 - -
Total business-type activities 5,759,274 4,303,931 - 1,283,005
Total primary government 23,129,169$ 5,489,821$ 1,091,166$ 4,543,711$
General Revenues:
Taxes:
Property taxes, levied for general purposes
Gross receipts taxes
Gasoline and motor vehicle taxes
Franchise taxes
Lodger's taxes
Other taxes
Interest income
Miscellaneous income
Transfers
Loss on disposal of capital assets
Total general revenues and transfers
Change in net assets
Net assets, beginning
Net assets, ending
The accompanying notes are an integral part of these financial statements
Program Revenues
STATE OF NEW MEXICO
Town of Taos
Statement of Activities
For the Year Ended June 30, 2010
24
Exhibit A-2
Governmental
Activities
Business-Type
Activities Total
(4,662,141)$ -$ (4,662,141)$
(3,614,860) - (3,614,860)
(61,191) - (61,191)
(3,030,859) - (3,030,859)
(121,649) - (121,649)
(341,433) - (341,433)
(11,832,133) - (11,832,133)
- (175,065) (175,065)
- 23,361 23,361
- (20,634) (20,634)
- (172,338) (172,338)
(11,832,133) (172,338) (12,004,471)
824,507 - 824,507
10,671,570 544,611 11,216,181
310,526 - 310,526
498,222 498,222
922,117 922,117
15,757 - 15,757
19,067 29,374 48,441
114,802 120,268 235,070
(76,930) 76,930 -
(93) - (93)
13,299,545 771,183 14,070,728
1,467,412 598,845 2,066,257
51,244,502 20,938,068 72,182,570
52,711,914$ 21,536,913$ 74,248,827$
Primary Government
Net (Expense) Revenue and Changes in Net Assets
25
STATE OF NEW MEXICO Exhibit B-1
Town of Taos Page 1 of 2
Balance Sheet
Governmental Funds
June 30, 2010
General Fund
Capital Projects
Fund
Other
Governmental
Funds Total
Assets
Unrestricted cash and cash equivalents 284,236$ 140,253$ 677,631$ 1,102,120$
Restricted cash and cash equivalents 1,672 1,957,973 23,304 1,982,949
Investments 1,016,325 609,522 1,836,578 3,462,425
Receivables:
Property taxes 204,811 - - 204,811
Other taxes 1,576,160 124,877 322,719 2,023,756
Due from other governments 1,521 16,717 1,059,969 1,078,207
Due from other funds 32,445 - - 32,445
Total assets 3,117,170$ 2,849,342$ 3,920,201$ 9,886,713$
Liabilities
Accounts payable 129,817$ 230,324$ 324,328$ 684,469$
Accrued payroll 82,839 - 17,111 99,950
Deposits held in trust for others - - 4,853 4,853
Deferred revenue 145,340 - - 145,340
Due to other funds - 16,710 42,383 59,093
Total liabilities 357,996 247,034 388,675 993,705
Fund balances
Reserved for:
Future debt service payments - - 286,886 286,886
Unreserved, reported in:
General fund 2,759,174 - - 2,759,174
Special revenue funds - - 1,469,221 1,469,221
Capital projects funds - 2,602,308 1,775,419 4,377,727
Total fund balances 2,759,174 2,602,308 3,531,526 8,893,008
Total liabilities and fund balances 3,117,170$ 2,849,342$ 3,920,201$ 9,886,713$
The accompanying notes are an integral part of these financial statements
26
STATE OF NEW MEXICO Exhibit B-1
Town of Taos Page 2 of 2
Amounts reported for governmental activities in the Statement of Net Assets
are different because:
Fund balances - total governmental funds 8,893,008$
The Town has unamortized bond issuance costs. Bond issuance costs are
not a current financial resource and, therefore, are not reported in the
funds.191,887
Capital assets used in governmental activities are not financial resources
and, therefore, are not reported in the funds 53,726,037
Delinquent property taxes not collected within sixty days after year end are
not considered "available" revenues and are considered to be deferred
revenue in the fund financial statements, but are considered revenue in
the Statement of Activities.145,340
Interest on long-term debt is not accrued in the fund financial statements
unless it is due and payable:
Accrued interest (51,262)
Some liabilities, including bonds payable, are not due and payable in
the current period and, therefore, are not reported in the funds:
Accrued compensated absences (646,610)
Bond premiums (61,504)
Bonds payable (6,545,000)
Loans payable (2,867,982)
Contracts payable (72,000)
Total net assets of governmental activities 52,711,914$
June 30, 2010
The accompanying notes are an integral part of these financial statements
Governmental Funds
Reconciliation of the Balance Sheet to the Statement of Net Assets
27
STATE OF NEW MEXICO Exhibit B-2
Town of Taos Page 1 of 2
Statement of Revenues, Expenditures and Changes in Fund Balances
Governmental Funds
For the Year Ended June 30, 2010
General Fund
Capital Projects
Fund
Other
Governmental
Funds Total
Revenues
Taxes
Property 855,755$ -$ -$ 855,755$
Gross receipts 8,912,266 753,987 1,005,317 10,671,570
Gasoline and motor vehicle taxes 229,171 - 81,355 310,526
Other 498,222 - 937,874 1,436,096
Intergovernmental income
Federal operating grants 2,650 - 149,549 152,199
Federal capital grants - 412,737 882,839 1,295,576
State operating grants 35,000 - 903,967 938,967
State capital grants - 308,550 1,656,580 1,965,130
Charges for services 407,461 - 456,231 863,692
Licenses and fees 285,166 - 37,032 322,198
Interest income 10,510 2,570 5,987 19,067
Miscellaneous 31,585 - 83,217 114,802
Total revenues 11,267,786 1,477,844 6,199,948 18,945,578
Expenditures
Current
General government 4,022,187 - 1,628,479 5,650,666
Public safety 2,829,727 - 211,032 3,040,759
Public works 1,032,020 43,712 445,632 1,521,364
Culture and recreation 1,933,932 - 485,761 2,419,693
Health and welfare - - 646,369 646,369
Capital outlay - 2,265,860 3,041,592 5,307,452
Debt service
Principal - - 557,159 557,159
Interest - - 331,313 331,313
Bond issuance costs - - 32,712 32,712
Total expenditures 9,817,866 2,309,572 7,380,049 19,507,487
Excess (deficiency) of revenues over
expenditures 1,449,920 (831,728) (1,180,101) (561,909)
Other financing sources (uses)
Proceeds from issuance of bonds - 2,213,469 - 2,213,469
Transfers in 4,808,690 164,457 3,414,664 8,387,811
Transfers out (5,603,296) (1,090,748) (1,770,697) (8,464,741)
Total other financing sources (uses)(794,606) 1,287,178 1,643,967 2,136,539
Net change in fund balances 655,314 455,450 463,866 1,574,630
Fund balance - beginning of year 2,103,860 2,146,858 3,067,660 7,318,378
Fund balance - end of year 2,759,174$ 2,602,308$ 3,531,526$ 8,893,008$
The accompanying notes are an integral part of these financial statements
28
STATE OF NEW MEXICO Exhibit B-2
Town of Taos Page 2 of 2
Amounts reported for governmental activities in the Statement of Activities
are different because:
Net change in fund balances - total governmental funds 1,574,630$
Governmental funds report capital outlays as expenditures. However, in
the Statement of Activities, the cost of those assets is allocated over their
estimated useful lives and reported as depreciation expense:
Capital expenditures recorded in capital outlay 5,307,452
Depreciation expense (3,777,021)
Loss on disposal of capital assets (93)
Revenues in the Statement of Activities that do not provide current financial
resources are not reported as revenue in the funds:
Decrease in deferred revenue related to property taxes receivable (31,248)
The issuance of long-term debt (e.g. bonds, loans, leases) provides current financial
resources to governmental funds, while the repayment of the principal of long-term
debt consumes the current financial resources of govermental funds. Neither
transaction, however, has any effect on net assets. Also, governmental funds
report the effect of issuance costs, premiums, discounts, and similar items when
debt is first issued, whereas these amounts are deferred and amortized in the
Statement of Activities:
Amortization of bond issuance costs (11,268)
Increase in accrued interest (10,120)
Decrease in accrued compensated absences 34,814
Amortization of bond premiums 3,864
Proceeds from issuance of bonds (2,213,469)
Bond issuance costs 32,712
Principal payments on bonds payable 400,000
Principal payments on loans payable 139,159
Payments on contracts payable 18,000
Change in net assets of governmental activities 1,467,412$
Reconciliation of the Statement of Revenues, Expenditures and Changes
in Fund Balances of Governmental Funds to the Statement of Activities
For the Year Ending June 30, 2010
The accompanying notes are an integral part of these financial statements
29
(This page intentionally left blank)
30
STATE OF NEW MEXICO Exhibit C-1
Variances
Actual
Favorable
(Unfavorable)
Original Final (GAAP Basis)Final to Actual
Revenues
Taxes
Property taxes 760,321$ 760,321$ 855,755$ 95,434$
Gross receipts 8,496,816 8,114,755 8,912,266 797,511
Gas and motor vehicle 164,461 229,019 229,171 152
Other 382,496 409,625 498,222 88,597
Intergovernmental income
Federal operating grants 5,550 5,550 2,650 (2,900)
Federal capital grants - - - -
State operating grants 35,000 35,000 35,000 -
State capital grants - - - -
Charges for services 341,862 378,074 407,461 29,387
Licenses and fees 292,282 247,570 285,166 37,596
Interest income 53,370 8,571 10,510 1,939
Miscellaneous 42,233 33,683 31,585 (2,098)
Total revenues 10,574,391 10,222,168 11,267,786 1,045,618
Expenditures
Current
General government 4,372,081 4,256,005 4,022,187 233,818
Public safety 3,033,039 2,914,670 2,829,727 84,943
Public works 1,119,748 1,034,103 1,032,020 2,083
Culture and recreation 2,101,984 2,009,566 1,933,932 75,634
Health and welfare - - - -
Capital outlay - - - -
Debt service
Principal - - - -
Interest - - - -
Total expenditures 10,626,852 10,214,344 9,817,866 396,478
Excess (deficiency) of revenues over expenditures (52,461) 7,824 1,449,920 1,442,096
Other financing sources (uses)
Designated cash (budgeted increase in cash)469,292 768,017 - (768,017)
Transfers in 5,086,022 4,846,728 4,808,690 (38,038)
Transfers out (5,502,853) (5,622,569) (5,603,296) 19,273
Total other financing sources (uses)52,461 (7,824) (794,606) (786,782)
Net change in fund balance - - 655,314 655,314
Fund balance - beginning of year - - 2,103,860 2,103,860
Fund balance - end of year -$ -$ 2,759,174$ 2,759,174$
Budgeted Amounts
Town of Taos
General Fund
Statement of Revenues, Expenditures and Changes in Fund Balance
Budget (GAAP Basis) and Actual
For the Year Ended June 30, 2010
31
Water and Sewer Solid Waste
Assets
Current assets
Cash and cash equivalents 1,810,288$ 885,336$ 452,676$
Investments 1,306,664 249,100 75,400
Customer receivables 358,097 147,065 98,648
Other receivables 1,164,370 1,801 -
Interfund receivable 167,518 - 97,000
Total current assets 4,806,937 1,283,302 723,724
Noncurrent assets
Restricted cash and cash equivalents 317,720 - 915,816
Capital assets 31,327,887 416,514 4,124,884
Less: accumulated depreciation (12,884,797) (340,123) (861,536)
Total noncurrent assets 18,760,810 76,391 4,179,164
Total assets 23,567,747$ 1,359,693$ 4,902,888$
Liabilities and net assets
Liabilities
Current liabilities
Accounts payable 1,271,614$ 144,344$ 20,972$
Accrued payroll 7,023 966 3,383
Meter deposits payable 241,564 - -
Accrued compensated absences 33,213 2,709 15,018
Interfund payable 132,299 98,160 7,411
Accrued interest payable 62,425 - 5,170
Current portion of bonds payable 41,000 - -
Current portion of loans and contracts payable 133,989 - 162,579
Total current liabilities 1,923,127 246,179 214,533
Noncurrent liabilities
Accrued compensated absences 7,094 961 5,395
Accrued landfill closure costs - - 480,190
Bonds payable 2,098,600 - -
Loans payable 2,348,847 - 968,489
Total noncurrent liabilities 4,454,541 961 1,454,074
Total liabilities 6,377,668 247,140 1,668,607
Net assets
Invested in capital assets, net of related debt 13,861,654 76,391 2,132,280
Restricted for:
Debt service 317,720 - 915,816
Unrestricted 3,010,705 1,036,162 186,185
Total net assets 17,190,079$ 1,112,553$ 3,234,281$
June 30, 2010
The accompanying notes are an integral part of these financial statements
STATE OF NEW MEXICO
Taos Regional
Landfill
Enterprise Funds
Town of Taos
Statement of Net Assets
Proprietary Funds
32
Exhibit D-1
Total
3,148,300$
1,631,164
603,810
1,166,171
264,518
6,813,963
1,233,536
35,869,285
(14,086,456)
23,016,365
29,830,328$
1,436,930$
11,372
241,564
50,940
237,870
67,595
41,000
296,568
2,383,839
13,450
480,190
2,098,600
3,317,336
5,909,576
8,293,415
16,070,325
1,233,536
4,233,052
21,536,913$
33
Water and Sewer Solid Waste
Operating revenues:
Charges for services 2,094,498$ 1,179,800$ 1,029,633$
Total operating revenues 2,094,498 1,179,800 1,029,633
Operating expenses:
Personnel services 658,611 85,887 325,291
Contractual services 1,209,435 793,380 388,390
Supplies 86,048 7,691 6,593
Repairs and maintenance 85,961 23,288 136,437
Utilities 296,395 243,367 6,710
Depreciation 1,027,085 2,647 150,221
Other costs 40,774 179 3,291
Total operating expenses 3,404,309 1,156,439 1,016,933
Operating income (loss) (1,309,811) 23,361 12,700
Non-operating revenues (expenses):
Gross receipts taxes 544,611 - -
Interest expense (148,259) - (33,334)
Interest income 25,336 - 4,038
Miscellaneous income 4,311 24,765 91,192
Total non-operating revenues (expenses)425,999 24,765 61,896
State and federal capital grants 1,283,005 - -
Transfers in 4,629,640 - 137,268
Transfers out (4,552,710) - (137,268)
Change in net assets 476,123 48,126 74,596
Net assets, beginning of year 16,713,956 1,064,427 3,159,685
Net assets, end of year 17,190,079$ 1,112,553$ 3,234,281$
STATE OF NEW MEXICO
Town of Taos
Statement of Revenues, Expenses and Changes in Fund Net Assets
The accompanying notes are an integral part of these financial statements
Taos Regional
Landfill
Enterprise Funds
Proprietary Funds
For the Year Ended June 30, 2010
34
Exhibit D-2
Total
4,303,931$
4,303,931
1,069,789
2,391,205
100,332
245,686
546,472
1,179,953
44,244
5,577,681
(1,273,750)
544,611
(181,593)
29,374
120,268
512,660
1,283,005
4,766,908
(4,689,978)
598,845
20,938,068
21,536,913$
35
Water and Sewer Solid Waste
Cash flows from operating activities:
Cash received from user charges 913,335$ 1,186,789$ 1,040,461$
Cash payments to employees for services (676,586) (88,564) (332,481)
Cash payments to suppliers for goods and services (560,346) (1,008,523) (385,042)
Net cash provided (used) by operating activities (323,597) 89,702 322,938
Cash flows from noncapital financing activities:
Gross receipts taxes 544,611 - -
Miscellaneous income 4,311 24,765 91,192
Change in noncurrent accrued compensated absences (6,599) 961 (2,575)
Interfund advances (payments) and transfers 37,491 1,044 (1,971)
Net cash provided by noncapital
financing activities 579,814 26,770 86,646
Cash flows from capital and related financing activities
State and federal capital grants 1,283,005 - -
Interest paid (149,563) - (33,933)
Proceeds from issuance of long-term debt 1,730,000 - -
Principal payments on long-term debt (115,227) - (158,675)
Acquisition of capital assets (2,937,825) - (213,268)
Net cash (used) by capital and
related financing activities (189,610) - (405,876)
Cash flows from investing activities:
Proceeds from sales and maturities 80,000 - -
Purchases of investments (2,790) - -
Interest on investments 25,336 - 4,038
Net cash provided by investing activities 102,546 - 4,038
Net increase in cash and cash equivalents 169,153 116,472 7,746
Cash and cash equivalents - beginning of year 1,958,855 768,864 1,360,746
Cash and cash equivalents - end of year 2,128,008$ 885,336$ 1,368,492$
Reconciliation of operating income (loss) to
net cash provided (used) by operating activities:
Operating income (loss)(1,309,811)$ 23,361$ 12,700$
Adjustments to reconcile operating income (loss) to
net cash provided (used) by operating activities:
Depreciation 1,027,085 2,647 150,221
Changes in assets and liabilities
Receivables (1,181,163) 6,989 10,828
Accounts payable 1,152,185 59,382 2,042
Accrued payroll expenses (24,566) (2,704) (9,180)
Current accrued compensated absences 6,591 27 1,990
Meter deposits 6,082 - -
Net cash provided (used) by operating activities (323,597)$ 89,702$ 322,938$
The accompanying notes are an integral part of these financial statements
Enterprise Funds
Taos Regional
Landfill
STATE OF NEW MEXICO
Town of Taos
Statement of Cash Flows - Proprietary Funds
For the Year Ended June 30, 2010
36
Exhibit D-3
Total
3,140,585$
(1,097,631)
(1,953,911)
89,043
544,611
120,268
(8,213)
36,564
693,230
1,283,005
(183,496)
1,730,000
(273,902)
(3,151,093)
(595,486)
80,000
(2,790)
29,374
106,584
293,371
4,088,465
4,381,836$
(1,273,750)$
1,179,953
(1,163,346)
1,213,609
(36,450)
8,608
6,082
89,043$
37
(This page intentionally left blank)
38
STATE OF NEW MEXICO Exhibit E-1
Town of Taos
Statement of Fiduciary Assets and Liabilities - Agency Funds
June 30, 2010
Assets
Cash 5,494$
Investments 62,500
Total assets 67,994$
Liabilities
Deposits payable 66,730$
Due to other entities 1,264
Total liabilities 67,994$
The accompanying notes are an integral part of these financial statements
39
STATE OF NEW MEXICO
Town of Taos
Notes to the Financial Statements
June 30, 2010
NOTE 1.Summary of Significant Accounting Policies
The Town of Taos (Town ) was incorporated in 1934. The Town operates under a Council-Mayor form of
government and provides the following services as authorized by its charter: public safety (police and fire),
highways and streets,public utilities (water, wastewater, and solid waste), health and social services, culture-
recreation,education, public improvements, planning and zoning, and general administrative services.
The Town of Taos is a body politic and corporate under the name and form of government selected by its
qualified electors. The Town may:
1.Sue or be sued;
2.Enter into contracts and leases;
3.Acquire and hold property, both real and personal;
4.Have common seal, which may be altered at pleasure;
5.Exercise such other privileges that are incident to corporations of like character or degree that are not
inconsistent with the laws of New Mexico;
6.Protect generally the property of its municipality and its inhabitants;
7.Preserve peace and order within the municipality; and
8.Establish rates for services provided by municipal utilities and revenue-producing projects, including
amounts which the governing body determines to be reasonable in the operation of similar facilities.
This summar y of significant accounting policies of the Town is presented to assist in the understanding of
Town’s financial statements. T he financial statements and notes are the representation of Town’s management
who is responsible for their integrity and objectivity.
The financial statements of the Town have been prepared in conformity with accounting principles generally
accepted in the United States of America (GAAP) as applied to governmental units. The Governmental
Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental
accounting and financial reporting principles. The GASB periodically updates its codification of the existing
Governmental Accounting and Financial Reporting Standards which, along with subsequent GASB
pronouncements (Statements and Interpretations), constitutes GAAP for governmental units. The government-
wide and the proprietar y funds financial statements have incorporated all applicable GASB pronouncements as
well as Financial Accounting Standards Board (FASB) Statements and Interpretations, Accounting Principles
Board Opinions and Accounting Research Bulletins of the Committee on Accounting Procedures issued after
November 30, 1989, unless those pronouncements conflict with or contradict GASB pronouncements.
Governments also have the option of following subsequent private sector guidance for their government-wide
financial statements and enterprise funds, subject to the same limitation. The Town has elected not to follow
the subsequent private sector guidance. The more significant of the Town ’s accounting policies are described
below.
A.Financial Reporting Entity
The financial reporting entity consists of (a) the primar y government, (b) organizations for which the
primar y government is financially accountable and (c) other organizations for which the nature and
significance of their relationship with the primar y g overnment are such that exclusion would cause the
reporting entity’s financial statements to be misleading or incomplete.
In evaluating how to define t he 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.’s 14 and 39.
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.
40
STATE OF NEW MEXICO
Town of Taos
Notes to the Financial Statements
June 30, 2010
NOTE 1.Summary of Significant Accounting Policies (continued)
A.Financial Reporting Entity (continued)
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.
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 does not have any component units
required to be reported under GASB Statements No. 14 and No. 39.
B.Government-wide and fund financial statements
The government-wide financial statements (i.e., the statement of net assets and the statement of
activities) report information on all of the nonfiduciar y a ctivities 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 Assets and the Statement of Activities were prepared using the economic
resources measurement focus and the accrual basis of accounting. R evenues, 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 Assets, both the governmental and business-type activities
columns (a) are presented on a consolidated basis by column, (b) and are reported on a full accrual,
economic resource basis, which recognizes a ll long-term assets and receivables as well as long-term
debt and obligations. T he Town’s net assets are reported in three parts – i nvested in capital assets, net
of related debt; restricted net assets; and unrestricted net assets.
41
STATE OF NEW MEXICO
Town of Taos
Notes to the Financial Statements
June 30, 2010
NOTE 1.Summary of Significant Accounting Policies (continued)
B.Government-wide and fund financial statements (continued)
The statement of activities demonstrates the degree to which the direct expenses of a given function or
segment are offset by p rogram revenues. Direct expenses a re those that are clearly identifiable with a
specific function or segment. Program revenues include 1) charges to customers or applicants who
purchase, use, or directly benefit from goods, services, or privileges provided by a given function or
segment and 2) grants and contributions that are restricted to meeting the operational or capital
requirements of a particular function or segment. T axes and other items not properly included among
program revenues are reported instead as general revenues.
Separate financial statements are provided for governmental funds, proprietar y funds and fiduciar y
funds, even though the latter are excluded fr om the government-wide financial statements. Major
individual governmental funds and major individual enterprise funds are reported as separate columns
in the fund financial statements.
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 proprietar y fund and fiduciar y fund financial
statements. Revenues are recorded when earned and expenses are recorded when a liability is
incurred, regardless of the timing of related cash flows. Property taxes, net of estimated refunds, ar e
recognized as revenues in the year for which they are levied. Grants and similar items are recognized
as revenue as soon as all eligibility requirements imposed by the provider have been met.
Governmental fund financial statements are reported using the current financial resources
measurement focus a nd the modified accrual basis of accounting. Re venues 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
da ys of the end of the current fiscal period. Expenditures generally are recorded when a liability is
incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures
related to compensated absences and claims and judgments, are recorded only when payment is due.
Property taxes, franchise taxes, licenses and interest associated with the current fiscal period are all
considered to be susceptible to accrual and so have been recognized as revenues of the current fiscal
period, subject to the availability criterion. Sales and use taxes are classified as derived tax revenues
and are recognized as revenue when the underlying exchange takes place and the revenues are
measurable and available. Grants and similar items are recognized as revenue as soon as all e ligibility
requirements imposed b y the provider have been met, subject to the availability criterion. Only the
portion of special assessments receivable due within the current fiscal period is considered to be
susceptible to accrual as revenue of the current period. All other revenue items are considered to be
measurable and available only when cash is received by the government.
42
STATE OF NEW MEXICO
Town of Taos
Notes to the Financial Statements
June 30, 2010
NOTE 1.Summary of Significant Accounting Policies (continued)
C.Measurement focus, basis of accounting, and financial statement presentation (continued)
The Town reports the following major governmental funds:
The General Fund is the government’s primar y operating fund. It accounts for all financial
resources of the general government, except those required to be accounted for in another
fund.
The Capital Projects Fund was created to accumulate revenue and other financing sources
for the purpose of financing general-purpose capital projects.
The Town reports its proprietar y funds as major funds. Proprietar y 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 the County. All activities necessar y t o pr ovide 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.
As a general rule, the effect of interfund activity has been eliminated fr om the government-wide
financial statements. Exceptions to this general rule are payments-in-lieu of taxes and other charges
between the government’s enterprise funds and various other functions of the government.
Elimination of these charges would distort the direct costs and program revenues reported in the
Statement of Activities.
Program revenues included in the Statement of Activities are derived directly from the program itself
or fr om parties outside the Town’s taxpayer or citizenr y, a s a whole; program revenues reduce the cost
of the function to be financed from the Town ’s general revenues. Program revenues are categorized
as (a) charges for services, which include revenues collected for fees and use of Town facilities, etc.,
(b) program-specific operating grants, which includes revenues received from state and federal
sources such as small cities assistance to be used as specified within each program grant agreement,
and (c) program-specific capital grants and contributions, which include revenues from state sources
to be used for capital projects. Internally dedicated resources are reported as general revenues r ather
than as program revenues. Likewise, general revenues include all taxes.
The Town r eports all direct expenses by function in the Statement of Activities. D irect expenses are
those that are clearly identifiable with a function. T he Town does not currently employ indirect cost
allocation s ys tems. Depreciation expense is specifically identified b y function and is included in the
direct expense of e ach function. Interest on general long-term debt is considered an indirect expense
and is reported separately on the Statement of Activities.
Proprietary funds distinguish operating revenues and expenses from non-operating items. O perating
revenues and e xpenses generally result from providing services in connection with the fund’s principal
ongoing operations. The principal operating revenue of the Town’s enterprise fund is charges for
services for the Town’s utilities. Operating expenses for enterprise funds include the cost of services,
administrative expenses and depreciation on capital assets. All revenues and expenses not meeting
this definition are reported as non-operating revenues and expenses.
43
STATE OF NEW MEXICO
Town of Taos
Notes to the Financial Statements
June 30, 2010
NOTE 1.Summary of Significant Accounting Policies (continued)
C.Measurement focus, basis of accounting, and financial statement presentation (continued)
When both restricted and unrestricted resources are available for use, it is the Town’s policy to use
restricted resources first, then unrestricted resources as they are needed.
D.Assets, Liabilities and Net Assets or Equity
Deposits and I nvestments: T he 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. T he r eported 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 p rovided, reimbursements
or transfers. Loans are reported as interfund receivables and payables as appropriate and are subject to
elimination upon consolidation. Services provided, deemed to be at market or near market rates, are
treated as revenues and expenditures/expenses. Reimbursements are when one fund incurs a cost,
charges the appropriate benefiting fund and reduces its related cost as a reimbursement. All other
interfund transactions are treated as transfers. Transfers between governmental or b etween proprietar y
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 b y a fund balance
reserve account in applicable governmental funds to indicate that they are not available for
appropriation and are not expendable a vailable financial resources in the event they are not received
within 60 days of year end.
All receivables are reported at their gross value and, where appropriate, are reduced b y the estimated
portion that is expected to be uncollectible. I n the government-wide and governmental fund financial
statements, delinquent property taxes are recorded when levied. Pr operty taxes are considered to be
100% collectible.
Property taxes are levied on November 1 based on the assessed value of property as listed on the
previous January 1 and are due in two payments b y N ovember 10th and April 10th. Property taxes
uncollected after November 10th and April 10th are considered delinquent and the Town may assess
penalties and interest. The taxes attach as an enforceable lien on property thirty (30) days thereafter,
at which time they become delinquent. Property taxes are collected by Taos County and remitted
monthly to the Town.
Restricted Assets: Restricted assets consist of those funds expendable for operating purposes but
restricted b y donors or other outside agencies as to the specific purpose for which they may b e used.
Capital Assets: Capital assets, which include property, plant, equipment, and infrastructure assets
(e.g., roads, bridges, sidewalks, and similar items), are reported in the applicable governmental or
business-type activities columns in the government-wide fi nancial statements. Capital assets are
defined b y 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. S uch assets are recorded at historical cost
or estimated historical cost if purchased or constructed. Pursuant to the implementation of GASB
Statement No. 34, the historical cost of infrastructure assets, (retroactive to 1979) are included as part
of the governmental capital assets reported in the government wide statements. Information
44
STATE OF NEW MEXICO
Town of Taos
Notes to the Financial Statements
June 30, 2010
NOTE 1.Summary of Significant Accounting Policies (continued)
D.Assets, Liabilities and Net Assets or Equity (continued)
Technology Equipment including software is being capitalized and included in furniture, fixtures and
equipment in accordance with NMAC 2.20.1.9 C (5). D onated capital assets are recorded at estimated
fair market value at the date of donation.
The costs of normal maintenance and repairs that do not add to the value of the asset or materially
extend assets lives are not capitalized. Librar y b ooks and periodicals are estimated to have a useful
life of less than one year or are under the capitalization threshold and are expensed when purchased.
Major outlays for capital assets and improvements are capitalized as projects are constructed. I nterest
incurred during the construction phase of capital assets of business-type activities is included as part
of the capitalized value of the assets constructed. The total interest expense capitalized b y the Town
during the current fiscal ye ar was $0. No interest was included as part of the cost of capital assets
under construction.
Property, plant, and equipment of the primary government are depreciated using the straight line
method over the following estimated useful lives:
Assets Years
Land Improvements 20
Buildings and improvements 10-50
Machinery and equipment 5-25
Infrastructure 10-50
Deferred Revenues: Accounting principles generally accepted in the United States of America
require that grant revenue (voluntary nonexchange transactions) be recognized as revenue in the
government-wide financial statements when all eligibility requirements have been met and recognized
as revenue in the governmental fund financial statements based on the same factors subject to the
availability criterion. Amounts received from reimbursement basis grants are recorded as deferred
revenue in the governmental fund financial statements when received more than 60 days after ye ar
end.
Compensated Absences: The Town’s employees earn personal leave at a rate of 22 to 27 days per
ye ar based on years of service. E mp loyees can carr y over unused personal leave each year with a cap
of 500 hours. On an appointed day each year employees may sell back unused personal leave based
on the following: 200 to 299 hours – 25% of hourly salary; 300 to 399 hours – 50% of hourly salar y;
400 to 499 – 75% of hourly salary; 500 hours and above – 100% of hourly salar y.
Once the employee achieves the 500 hour cap, they can only sell back a total of 136 hours annually;
the other 80 hours accrued annually must be used by December 31 or forfeited. At retirement or
separation all leave may be sold back at 100% of hourly salary.
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
proprietar y fund that will pay i t. 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 assets.
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 assets. Bond premiums and discounts, as well as issuance costs, are deferred and amortized
45
STATE OF NEW MEXICO
Town of Taos
Notes to the Financial Statements
June 30, 2010
NOTE 1.Summary of Significant Accounting Policies (continued)
D.Assets, Liabilities and Net Assets or Equity (continued)
over the life of the bonds using the effective interest method. 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.
Net Assets or Fund Equity: In the fund financial statements, governmental funds report reservations
of fund balance that are not available for appropriation or are legally restricted by outside parties for
use for a specific purpose. Designations of fund balance represent tentative management plans that
are subject to change.
Equity is classified as net assets and displayed in three components:
a. Invested in capital assets, net of related debt: Net assets invested in capital assets, net of
accumulated depreciation and reduced by the outstanding balances of any b onds, mortgages,
notes, or other borrowings that are attributable to the acquisition, construction, or
improvement of those assets.
b. Restricted Net Assets: Consist of net assets with constraints placed on the use either b y (1)
external groups such as creditors, grantors, contributors, or laws or regulation of other
governments; or (2) law through constitutional provisions or enabling legislation.
c. Unrestricted Net assets:All other net assets that do not meet the definition of “restricted”
or “invested in capital assets, net of related debt.”
Interfund Transactions: Q uasi-external transactions are accounted for as revenues, expenditures or
expenses. T ransactions that constitute reimbursements to a fund from expenditures/expenses initially
made from it that are properly a pplicable t o a nother 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 a s
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 fr om those estimates. Significant estimates in the Town’s financial statements include the
allowance for uncollectible accounts in the joint utility fund and depreciation on capital assets.
Reclassifications: Certain amounts included in the financial statements have been reclassified to
conform to the current year presentation.
NOTE 2.Stewardship, Compliance and Accountability
Budgetary Information
Annual budgets of the Town are prepared prior to June 1 and must be approved b y resolution of the
Town Commissioners, 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 b y
the Town C ouncil Members a nd 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
46
STATE OF NEW MEXICO
Town of Taos
Notes to the Financial Statements
June 30, 2010
NOTE 2.Stewardship, Compliance and Accountability (Continued)
Budgetary Information (Continued)
legally permissible to over-expend any budget in total b y fund.
Governmental fund budgets are prepared on the GAAP basis, excluding encumbrances, and secure
appropriation of funds for only one year. Carr yover funds must be re-appropriated in the budget of
the subsequent fiscal year.
Proprietary fund budgets are prepared on the cash basis. 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. T hese amendments resulted in the following
changes:
Excess (deficiency)
of revenues over expenditures
Original Final
Budget Budget
Budgeted Funds:
General Fund $(52,461)$7,824
Capital Projects Fund $(3,650,916)$(2,987,293)
Nonmajor Governmental Funds $(2,769,993)$(2,776,017)
Water and Sewer $(753,444)$(918,315)
Solid Waste $(6,916)$(213,936)
Taos Regional Landfill $229,639 $(174,290)
The accompanying Statements of Revenues, Expenditures and Changes in Fund Balance – Budget
(GAAP Basis) and Actual presents comparisons of the legally adopted budget with actual data on a
budgetar y basis.
NOTE 3.Deposits and Investments
State statutes authorize the investment of Town funds in a wide variety of instruments including certificates of
deposit and other similar obligations, state investment pool, money market accounts, and United States
Government obligations. The Town is not aware of any invested funds that did not meet the State investment
requirements as of June 30, 2010.
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 rate of interest in non-demand interest-bearing accounts shall be set b y 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 treasur y
bills of the same maturity on the day of deposit.
Excess of funds may be temporarily invested in securities which are issued by t he State or by t he 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 b y the full faith and credit of those governments.
According to the Federal Deposit Insurance Corporation (FD IC), p ublic unit deposits are funds owned b y the
public unit. Time deposits, savings deposits and interest bearing negotiable order of withdrawal (NOW)
accounts of a public unit in an institution in the same state will be insured up to $250,000 in aggregate and
separate from the $250,000 coverage for public unit demand deposits at the same institution. However, on
47
STATE OF NEW MEXICO
Town of Taos
Notes to the Financial Statements
June 30, 2010
NOTE 3.Deposits and Investments (Continued)
October 14, 2008, the FDIC announced a new Transaction Account Guarantee (TAG) Program, that provides
depositors with unlimited coverage through December 31, 2010 for insured depositor y institutions (IDIs)
currently participating in the TAG program, with the possibility of an additional extension of up to 12 months
without additional rulemaking, upon a determination by the FD IC’s Board of Directors that continuing
economic difficulties warrant further extension. With regards to this Transaction Guarantee Program,
noninterest-bearing checking accounts include Demand Deposit Accounts (DDA’s) a nd any other transaction
account that has unlimited withdrawals and that cannot earn interest. Also included in this program are low-
interest NOW accounts that cannot earn more than 0.5% interest.
Custodial Credit Risk – D eposits C ustodial 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 for th in the Public Money Act (Section 6-10-1 to 6-10-63, NMSA 1978). At
June 30, 2010, $116,000 of the Town’s deposits of $5,520,480 w as exposed to custodial credit risk. $116,000
was uninsured and collateralized by c ollateral held by the p ledging bank’s trust department, not in the Town’s
name and $0 was uninsured and uncollateralized.
Amount of deposits 3,980,670$ 1,539,810$ 5,520,480$
Transaction Deposit Accounts
covered by the "Transaction
Account Guarantee Program"(3,364,670) (1,289,810) (4,654,480)
FDIC Coverage (500,000) (250,000) (750,000)
Total uninsured public funds 116,000 - 116,000
116,000 - 116,000
Uninsured and uncollateralized -$ -$ -$
Collateral requirement
(50% of uninsured funds)58,000$ -$ 58,000$
Pledged Collateral 241,630 - 241,630
Over (Under) collateralized 183,630$ -$ 183,630$
TotalCentinel Bank
Collateralized by securities held by
pledging institutions or by its trust
department or agent in other than the
Town's name
First Community
Bank
The collateral pledged is listed on Schedule II in this report. The types of collateral allowed are limited to
direct obligations of the United States Government and all bonds issued by any agency, district or political
subdivision of the State of New Mexico.
48
STATE OF NEW MEXICO
Town of Taos
Notes to the Financial Statements
June 30, 2010
NOTE 3.Deposits and Investments (continued)
Investments
The Town invests excess cash in the State Treasurer Lo cal Government Investment Pool. 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 pool does not have unit shares. P er Section 6-10-10.(F), NMSA 1978, at the end of each month all interest
earned is distributed by the State Treasurer to the contributing entities in amounts directly proportionate to the
respective amounts deposited in the fund and the length of time the fund amounts were invested. P articip ation
in the LGIP is voluntar y.
As of June 30, 2010, the Town’s investment in the State Treasurer Local Government Investment Pool was
rated as AAAm b y S tandard & Poor’s.
Additionally, the Town has investments held in U.S. Treasury Money Market Mutual Funds at the Bank of
Albuquerque in connection with New Mexico Finance Authority (NMFA) loans. Also, the Town has
investments which are managed by N MFA, on deposit with the State Treasurer’s office, in NMFA’s name for
the benefit of the Town.
The Town’s investments at June 30, 2010 include the following:
Investments Rated
New MexicoGrow Local Government Investment Pool AAAm 50 Days 4,750,853$
Reserve Contingencies Fund Unrated Does not earn interest 39,236
U.S. Treasury Money Market Mutual Funds *AAA >365 Days 441,573
New Mexico State Treasurer Debt Service *AAA >365 Days 2,590,450
$ 7,822,112
Weighted Average
Maturity Fair Value
*Restricted cash and cash equivalents per Exhibit A-1
Interest Rate Risk – I nvestments. T he Town d oes not have a formal policy l imiting 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 County. T he investments in the New MexiGROW LGIP
and U.S Treasur y Money Market Mutual Funds represent 26% and 74%, respectively, of the investment
portfolio. Since the County only purchases investments with the highest credit rating, the additional
concentration is not viewed to be an additional risk by the County. The County’s policy related to
concentration 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).
49
STATE OF NEW MEXICO
Town of Taos
Notes to the Financial Statements
June 30, 2010
NOTE 3.Deposits and Investments (continued)
Reconciliation to the Statement of Net Assets:
Unrestricted cash and cash equivalents per Exhibit A-1 4,250,420$
Restricted cash and cash equivalents per Exhibit A-1 3,216,485
Agency funds cash per Exhibit E-1 5,494
Certificates of deposits (maturity > 3 months)366,000
Plus outstanding checks 1,252,577
Less deposits in transit (536,973)
Less U.S. Treasury Money Market Mutual Funds (441,573)
Less New Mexico State Treasurer Debt Service (2,590,450)
Less petty cash (1,500)
Bank balance of deposits 5,520,480$
NOTE 4.Receivables
Receivables as of June 30, 2010, are as follows:
Governmental Activities:Other
Capital Governmental
General Projects Funds Total
Property taxes receivable 204,811$ -$ -$ 204,811$
Other taxes receivable:
Gross receipts 1,481,874 124,877 166,503 1,773,254
Gasoline and motor vehicle 20,935 - 8,318 29,253
Franchise taxes 73,351 - - 73,351
Lodger's taxes - - 147,898 147,898
Due from other governments:
Intergovernmental:
Federal grants - - 68,956 68,956
State grants - 16,717 991,013 1,007,730
Licenses and fees 1,521 - - 1,521
Total receivables 1,782,492$141,594$ 1,382,688$ 3,306,774$
Receivables for governmental activities are considered to be 100% collectible.
Governmental funds report deferred revenue i n c onnection with receivables for revenues that are not considered
to b e available to liquidate liabilities in the current period. Governmental funds also defer revenue recognition
in connection with resources that have been received but not yet earned. Deferred revenue related to property
taxes receivable for the Town for the year ended June 30, 2010 was $145,340.
50
STATE OF NEW MEXICO
Town of Taos
Notes to the Financial Statements
June 30, 2010
NOTE 4.Receivables (Continued)
Business-type Activities:Water and Solid
Sewer Waste Landfill Total
Customer receivables 717,926$ 200,610$ 121,237$ 1,039,773$
Other receivables:
Gross receipts taxes 83,251 - - 83,251
Intergovernmental:
Federal grants 900,900 - - 900,900
State grants 180,219 - - 180,219
Miscellaneous - 1,801 - 1,801
Total gross receivables 1,882,296 202,411 121,237 2,205,944
Less: allowance for
doubtful accounts 359,829 53,545 22,589 435,963
Total net receivables 1,522,467$148,866$ 98,648$ 1,769,981$
NOTE 5.Transfers and Interfund Receivables
Net operating transfers, made to close out funds and to supplement other funding sources, were as follows:
Transfers In Transfers Out Amount
General Fund 1/4 Cent Municipal GRT 350,000$
Airport Construction General Fund 16,000
Lodger's Tax General Fund 245,000
Lodger's Tax Capital Projects 50,000
Civic Center General Fund 72,047
Civic Center Lodger's Tax 313,435
Public Transportation General Fund 38,000
Public Transportation Lodger's Tax 98,375
Communications General Fund 249,880
2001 GRT Revenue Bond Retirement 1/4 Cent Municipal GRT 143,135
2008 GRT Revenue Bond Retirement 1/4 Cent Municipal GRT 140,825
1999 Gas Tax Revenue Bond Retirement General Fund 157,111
1999 Gas Tax Revenue Bond Retirement Municipal Road Gasoline Tax 3,374
1999 Gas Tax Revenue Bond Retirement 1999 Gas Tax Revenue Bond Reserve 76,774
2007 NMFA Land Purchase 1/4 Cent Municipal GRT 110,500
Facilities Improvements General Fund 18,500
Facilities Improvements Capital Projects 350,000
Capital Projects 1/4 Cent Municipal GRT 353,518
1999 Gasoline Tax Acquisition Capital Projects 35,000
2,821,474$
Internal balances have primarily been recorded when funds overdraw their share of pooled cash. The
composition of interfund balances as of June 30, 2010 is as follows:
51
STATE OF NEW MEXICO
Town of Taos
Notes to the Financial Statements
June 30, 2010
NOTE 5.Transfers and Interfund Receivables (Continued)
Due from Other Funds Due to Other Funds Amount
General Fund Public Transportation 15,496$
General Fund Airport Construction 2,452
General Fund Water and Sewer 5,926
General Fund Solid Waste 1,160
General Fund Taos Regional Landfill 7,411
Water and Sewer 1999 Gasoline Tax Acquisition 24,435
Water and Sewer Capital Projects 16,710
Water and Sewer Water and Sewer 126,373
Taos Regional Landfill Solid Waste 97,000
296,963$
All interfund transactions are short-term and are expected to be repaid within a month.
NOTE 6.Capital Assets
A summar y of capital assets and changes occurring during the year ended June 30, 2010 follows. Land and
construction in progress are not subject to depreciation.
Balance Balance
Governmental activities:June 30, 2009 Reclassifications Additions Deletions June 30, 2010
Capital assets, not depreciated:
Land 6,051,936$ 5,413$ 220,460$ -$ 6,277,809$
Construction in progress 8,226,142 (2,026,517) 1,302,019 - 7,501,644
Total capital assets, not depreciated 14,278,078 (2,021,104) 1,522,479 - 13,779,453
Capital assets, depreciated:
Land improvements 4,608,964 5,344 454,677 - 5,068,985
Buildings and improvements 23,291,085 1,922,686 2,007,785 - 27,221,556
Machinery and equipment 14,251,086 (18,027) 1,078,505 69,291 15,242,273
Infrastructure 46,041,637 81,801 244,006 - 46,367,444
Total capital assets, depreciated 88,192,772 1,991,804 3,784,973 69,291 93,900,258
Less accumulated depreciation:
Land improvements (3,108,333) - (248,167) - (3,356,500)
Buildings and improvements (9,756,065) - (884,234) - (10,640,299)
Machinery and equipment (9,855,659) 29,300 (1,052,758) (69,198) (10,809,919)
Infrastructure (27,555,094) - (1,591,862) - (29,146,956)
Total accumulated depreciation (50,275,151) 29,300 (3,777,021) (69,198) (53,953,674)
Net book value 52,195,699$ -$ 1,530,431$ 93$ 53,726,037$
52
STATE OF NEW MEXICO
Town of Taos
Notes to the Financial Statements
June 30, 2010
NOTE 6. Capital Assets
Depreciation expense for the year ended June 30, 2010 was charged to governmental activities as follows:
General government 844,215$
Public safety 623,454
Public works 1,747,086
Culture and recreation 562,266
3,777,021$
Balance Balance
Business-type activities:June 30, 2009 Reclassifications Additions Deletions June 30, 2010
Capital assets, not depreciated:
Land 262,422$ -$ -$ -$ 262,422$
Construction in progress 1,543,776 (1,378,004) 2,469,666 - 2,635,438
Total capital assets, not depreciated 1,806,198 (1,378,004) 2,469,666 - 2,897,860
Capital assets, depreciated:
Land improvements 104,895 - - - 104,895
Buildings and improvements 4,001,908 24,394 279,678 - 4,305,980
Machinery and equipment 8,348,630 - 283,392 8,632,022
Infrastructure 18,455,132 1,353,610 299,786 - 20,108,528
Total capital assets, depreciated 30,910,565 1,378,004 862,856 - 33,151,425
Less accumulated depreciation:
Land improvements (76,794) - (3,484) - (80,278)
Buildings and improvements (1,671,755) - (148,571) - (1,820,326)
Machinery and equipment (5,492,534) - (305,172) (5,797,706)
Infrastructure (5,663,991) - (724,155) - (6,388,146)
Total accumulated depreciation (12,905,074) - (1,181,382) - (14,086,456)
Net book value 19,811,689$ -$ 2,151,140$ -$ 21,962,829$
Depreciation expense for the ye ar ended June 30, 2010 was charged to business-type activities as follows:
Water and sewer 1,027,085$
Solid waste 2,647
Landfill 150,221
1,179,953$
53
STATE OF NEW MEXICO
Town of Taos
Notes to the Financial Statements
June 30, 2010
NOTE 7.Long-term Debt
Governmental Activities:
During the ye ar ended June 30, 2010, the following changes occurred in the liabilities reported in the
government-wide statement of net assets:
Balance Balance Due Within
June 30, 2009 Additions Retirements June 30, 2010 One Year
Revenue Bonds 6,945,000$ -$ 400,000$ 6,545,000$ 415,000$
NMFA Loans 793,672 2,213,469 139,159 2,867,982 217,296
USDA Contract Payable 90,000 - 18,000 72,000 18,000
Compensated Absences 681,424 376,722 411,536 646,610 411,536
Total Long-Term Debt 8,510,096$ 2,590,191$ 968,695$ 10,131,592$ 1,061,832$
Revenue Bonds
At June 30, 2010, the Town had two revenue bonds outstanding. For the Series 1999 Gasoline Tax Revenue
Bonds, the Town pledged revenues from the General and Municipal Road Gasoline Tax revenues. For the
Series 2008 Gross Receipts Tax Revenue Bonds, the Town pledged revenues fr om the State-Shared Gross
Receipts Tax revenues. The revenue bonds are as follows:
Original
Date of Due Interest Amount
Description Issue Date Rate of Issue
Series 1999 Gasoline Tax 03/01/99 10/01/12 3.60-4.75%1,955,000$
Series 2008 Gross Receipts Tax 01/30/08 06/01/26 4.00-5.00%6,395,000
Total Revenue Bonds
The annual requirements to amortize the revenue bonds as of June 30, 2010, including interest payments, a re as
follows:
Fiscal Year Total Debt
Ending June 30,Principal Interest Service
2011 415,000$ 265,278$ 680,278$
2012 435,000 247,755 682,755
2013 450,000 229,188 679,188
2014 280,000 209,800 489,800
2015 290,000 198,600 488,600
2016-2020 1,815,000 1,013,650 2,828,650
2021-2025 1,345,000 117,260 1,462,260
2026-2030 1,515,000 63,630 1,578,630
6,545,000$ 2,345,161$ 8,890,161$
54
STATE OF NEW MEXICO
Town of Taos
Notes to the Financial Statements
June 30, 2010
NOTE 7.Long-term Debt (continued)
NMFA Loan
The Town entered into two loan agreements with the New Mexico Finance Authority, wherein the Town
pledged revenue derived from State-Shared Gross Receipts Tax to cover debt service. This revenue is not
subject to intercept agreements. The NMFA loan is as follows:
Original
Date of Due Interest Amount
Description Issue Date Rate of Issue
NMFA Land Purchase Loan 04/13/07 05/01/17 3.32-3.73%954,000$
NMFA Phase I Multi-Phase Eco Park 11/25/09 05/01/25 0.62-3.67%2,213,469
Total NMFA Loans
The annual requirements to amortize the NMFA loans as of June 30, 2010, including interest payments, are as
follows:
Fiscal Year Total Debt
Ending June 30,Principal Interest Service
2011 217,296$ 75,420$ 292,716$
2012 221,078 71,874 292,952
2013 225,410 67,785 293,195
2014 230,226 63,220 293,446
2015 235,585 58,119 293,704
2016-2020 922,970 207,513 1,130,483
2021-2025 815,417 88,362 903,779
2,867,982$ 632,293$ 3,500,275$
USDA Contract Payable
At June 30, 2010, the Town had the following USDA contract payable:
Original
Date of Due Interest Amount
Description Issue Date Rate of Issue
USDA Contract Payable 02/01/95 06/30/14 0.00%360,000$
The annual requirements to amortize the USDA contract payable as of June 30, 2010, including interest
payments, are as follows:
55
STATE OF NEW MEXICO
Town of Taos
Notes to the Financial Statements
June 30, 2010
NOTE 7.Long-term Debt (continued)
Fiscal Year Total Debt
Ending June 30,Principal Interest Service
2011 18,000$ -$ 18,000$
2012 18,000 - 18,000
2013 18,000 - 18,000
2014 18,000 - 18,000
72,000$ -$ 72,000$
In prior ye ars, the debt service funds have t yp ically b een used to liquidate long-term liabilities other than debt
associated with the USDA contract payable which is liquidated by t he facilities improvements capital projects
fund. Employees of the Town are able to accrue a limited amount of vacation and other compensatory time
during the ye ar. During fiscal ye ar June 30, 2010, compensated absences decreased $34,814 from the prior
ye ar accrual. Compensated absences are liquidated by the respective funds in which they are accrued.
Proprietary Funds
The proprietar y funds have incurred various forms of debt which were used for the purposes of constructing,
expanding, repairing and making improvements to its property, plant and equipment. The following schedule
shows the changes to its various forms of debt during the fiscal year ended June 30, 2010:
Balance Balance Due Within
June 30, 2009 Additions Retirements June 30, 2010 One Year
Revenue Bonds 2,179,600$ -$ 40,000$ 2,139,600$ 41,000$
NMFA and RUS Loans 2,117,806 1,730,000 233,902 3,613,904 296,568
Landfill Closure Liability 325,853 154,337 - 480,190 -
Compensated Absences 63,995 51,335 50,940 64,390 50,940
Total Long-Term Debt 4,687,254$ 1,935,672$ 324,842$ 6,298,084$ 388,508$
Revenue Bonds
At June 30, 2010, the Town had the following revenue bonds outstanding:
Original
Date of Due Interest Amount
Description Issue Date Rate of Issue
Series 1993A Water & Sewer 03/16/93 03/16/33 5.63%635,600$
Series 1993B Water & Sewer 03/16/93 03/16/33 5.50%123,000
Series 1995A Water & Sewer 12/05/95 12/05/35 5.125%1,315,000
Series 1998A Water & Sewer 07/01/99 01/01/38 4.75%475,000
Total Revenue Bonds
56
STATE OF NEW MEXICO
Town of Taos
Notes to the Financial Statements
June 30, 2010
NOTE 7.Long-term Debt (continued)
The annual requirements to amortize the revenue bonds as of June 30, 2010, including interest payments, are as
follows:
Fiscal Year Total Debt
Ending June 30,Principal Interest Service
2011 41,000$ 111,382$ 152,382$
2012 43,000 109,235 152,235
2013 46,000 106,982 152,982
2014 49,000 104,572 153,572
2015 52,000 102,003 154,003
2016-2020 300,000 466,502 766,502
2021-2025 389,000 378,951 767,951
2026-2030 503,000 265,742 768,742
2031-2035 558,600 120,777 679,377
2036-2040 158,000 12,175 170,175
2,139,600$ 1,778,321$ 3,917,921$
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:
Original
Date of Due Interest Amount
Description Issue Date Rate of Issue
RUS Series 2000A Water & Sewer 12/18/00 12/18/40 5.00%250,000$
NMFA Series 2001A Water & Sewer 05/11/01 05/01/21 4.16-5.41%950,391
NMFA Taos Regional Landfill 04/23/04 05/01/14 .79-3.34%1,372,684
NMFA Series 2008A Landfill 04/11/08 05/01/18 2.72-3.58%1,000,000
NMFA/WTB Water Project Fund Loan 09/11/09 06/01/29 0.00%130,000
NMFA/WTB Water Project Fund Loan 09/11/09 06/01/29 0.00%600,000
NMED/ARRA Water State Revolving Fund Loan 11/23/09 06/30/30 0.00%1,000,000
Total Loans
57
STATE OF NEW MEXICO
Town of Taos
Notes to the Financial Statements
June 30, 2010
NOTE 7.Long-term Debt (continued)
The annual requirement to amortize the loans as of June 30, 2010, i ncluding interest payments, are a s follows:
Fiscal Year Total Debt
Ending June 30,Principal Interest Service
2011 296,568$ 65,728$ 362,296$
2012 302,663 59,921 362,584
2013 309,252 53,597 362,849
2014 317,268 46,765 364,033
2015 251,666 39,438 291,104
2016-2020 1,100,015 115,433 1,215,448
2021-2025 477,504 45,297 522,801
2026-2030 432,968 36,950 469,918
2031-2035 46,000 27,150 73,150
2036-2040 59,000 14,350 73,350
2041-2045 21,000 1,050 22,050
3,613,904$ 505,679$ 4,119,583$
NOTE 8.Risk Management
The Town is exposed to various risks of loss related to torts, thefts of, damage to, and destruction of property,
errors and omissions and natural disasters. T he Town p articipates in the New Mexico Self-Insurers’ Fund risk
pool.
The Town has not filed any claims for which the settlement amount exceeded the insurance coverage during
the past three years. However, should a claim be filed against the Town which exceeds the insurance coverage,
the Town would be responsible for a loss in excess of the coverage amounts. As claims are filed, the New
Mexico Self-Insurers’ Fund assesses and estimates the potential for loss and handles all aspects of the claim.
Insurance coverage’s have not changed significantly from prior ye ars and coverage’s are expected to be
continued.
At June 30, 2010, no unpaid claims have been filed which exceed the policy limits and to the best of
management’s knowledge and belief all known and unknown claims will be covered by insurance. No major
lawsuits have been filed against the Town of Taos.
New Mexico Self-Insurers’ Fund has not provided information on an entity by e ntity basis that would allow for
a reconciliation of changes in the aggregate liabilities for claims for the current fiscal year and the prior fiscal
ye ar.
58
STATE OF NEW MEXICO
Town of Taos
Notes to the Financial Statements
June 30, 2010
NOTE 9.Other Required Individual Fund Disclosures
Generally accepted accounting principles require disclosures of certain information concerning individual funds
including:
A.Deficit fund balance of individual funds. There were no funds with a deficit fund balance as of June 30,
2010.
B.Actual expenditures in excess of amount budgeted at the budgetar y authority level. Budgetar y level is
fund level. There were no funds that exceeded approved budgetar y authority for the year ended June 30,
2010:
C.Designated cash appropriations in excess of available balances. There were no funds t hat had designated
cash appropriations in excess of available balances for the year ended June 30, 2010.
NOTE 10.PERA Pension Plan
Plan Description. Substantially all of the Town of Taos’s full-time employees participate in a public employee
retirement system authorized under the Public Employees Retirement Act (Chapter 10, Article 11 NMSA
1978.) T he Public Employee Retirement Association (PERA) is the administrator of the plan, which is a cost-
sharing, multiple-employer defined benefit retirement plan. T he p lan provides for retirement b enefits, disability
benefits, survivor benefits, and cost-of-living adjustments to plan members and beneficiaries. PERA issues a
separate, publicly available financial report that includes financial statements and required supplementary
information for the plan. That report may be obtained b y writing to PERA, P.O. Box 2123, Santa Fe, NM
87504-2123. The report is also available on PERA’s website at www.pera.state.nm.us.
Funding Po licy. Plan members are required to contribute the following percentages of their gross salar y:
9.15% for law enforcement, fire protection and municipal employees. The Town is required to contribute the
following percentages of the gross covered salar y: 25.65% for law enforcement employees, 28.30% for fire
protection employees, and 13.15% for municipal employees. The contribution requirements of plan members
and the Town are established in State statute under Chapter 10, Article 11, NMSA 1978. The requirements
may be amended by acts of the legislature. The Town ’s contributions to PERA for the years ending J une 30,
2010, 2009 and 2008 were $1,050,500, $964,168 and $640,410, respectively, which equals the amount of the
required contributions for each fiscal year.
59
STATE OF NEW MEXICO
Town of Taos
Notes to the Financial Statements
June 30, 2010
NOTE 11 .Post-Employment Benefits – State Retiree Health Care Plan
Plan Description. Town of Taos contributes to the New Mexico Retiree Health Care Fund, a cost-sharing multiple-
employer defined benefit postemployment healthcare plan administered by the New Mexico Retiree Health Care
Authority (RHCA). The RHCA provides health care insurance and prescription drug benefits to retired employees of
participating New Mexico government agencies, their spouses, dependents, and surviving spouses and dependents. T he
RHCA Board was established by the Retiree Health Care Act (Chapter 10, Article 7C, NMSA 1978). The Board is
responsible for establishing and amending benefit provisions of the healthcare plan and is also authorized to designate
optional and/or voluntary benefits like dental, vision, supplemental life insurance, and long-term care policies.
Eligible retirees are: 1) retirees who make contributions to the fund for at least five years prior to retirement and whose
eligible employer during that period of time made contributions as a participant in the RHCA plan on the person’s behalf
unless that person retires before the employer’s RHCA effective date, in which event the time period required for
employee and employer contributions shall become the period of time between the employer’s effective date and the date
of retirement; 2) retirees defined by the Act who retired prior to July 1, 1990; 3) former legislators who served at least
two years; and 4) former governing authority members who served at least four years.
The RHCA issues a publicly available stand-alone financial report that includes financial statements and required
supplementary information for the postemployment healthcare plan. That report and further information can be obtained
by writing to the Retiree Health Care Authority at 4308 Carlisle NE, Suite 104, Albuquerque, NM 87107.
Funding Po licy. T he Retiree Health Care Act (Section 10-7C-13 NMSA 1978) authorizes the RHCA Board to establish
the monthly premium contributions that retirees are required to pay for healthcare benefits. Each participating retiree
pays a monthly premium according to a service based subsidy rate schedule for the medical plus basic life plan plus an
additional participation fee of five dollars if the eligible participant retired prior to the employer’s RHCA effective date
or is a former legislator or former governing authority member. F ormer legislators and governing authority members are
required to pay 100% of the insurance premium to cover their claims and the administrative expenses of the plan. The
monthly premium rate schedule can be obtained from the RHCA or viewed on their website at www.nmrhca.state.nm.us.
The Retiree Health Care Act (Section 10-7C-15 NMSA 1978) is the statutory authority that establishes the required
contributions of participating employers and their employees. During the fiscal year ended June 30, 2010, the statute
required each participating employer to contribute 1.3% of each participating employee’s annual salar y; each
participating employee was required to contribute .65% of their salar y. In the fiscal years ending June 30, 2011 through
June 30, 2013 the contribution rates for employees and employers will rise as follows:
(1)
For employees who are not members of an enhanced retirement plan the contribution rates will be:
Fiscal Year Employer Contribution Rate Employee Contribution Rate
FY 11 1.666%.833%
FY12 1.834%.917%
FY 13 2.000%1.000%
(2)
For employees who are members of an enhanced retirement (state police and adult correctional officer coverage plan 1;
municipal police member coverage plans 3, 4, and 5; municipal fire member coverage plan 3, 4 and 5; municipal
detention officer member coverage plan 1; and members pursuant to the Judicial Retirement Act [10-12B-1 NMSA
1978]) the contribution rates will be:
Fiscal Year Employer Contribution Rate Employee Contribution Rate
FY 11 2.084%1.042%
FY12 2.292%1.146%
FY 13 2.500%1.250%
60
STATE OF NEW MEXICO
Town of Taos
Notes to the Financial Statements
June 30, 2010
NOTE 11.Post-Employment Benefits – State Retiree Health Care Plan (continued)
Also, employers joining the program after 1/1/98 are required to make a surplus-amount contribution to the
RHCA based on one of two formulas at agreed-upon intervals.
The RHCA plan is financed on a pay-as-you-go basis. The e mp loyer, employee and retiree contributions are
required to be remitted to the RHCA on a monthly basis. The statutor y r equirements for the contributions can
be changed b y the New Mexico State Legislature.
The Town’s contributions to the RHCA for the ye ars ended June 30, 2010, 2009 and 2008 were $83,627,
$76,488 and $75,902, respectively, which equal the required contribution for each year.
NOTE 12.Contingent Liabilities
There is not any pending litigation that would warrant disclosure in the notes to the financial statements.
NOTE 13.Federal and State Grants
In the normal course of operations, the Town receives grant funds from various federal and state agencies.
Amounts received or receivable from grantor agencies are subject to audit and adjustment by gr antor agencies,
the purpose of which is to ensure compliance with conditions precedent to the granting of funds. Any liability
for reimbursement which may arise as a result of these audits is not believed to be material.
NOTE 14.Landfill Closure and Post Closure Care Costs
State and Federal laws and regulations require that the Town place a final cover on its landfill site and perform
certain maintenance and monitoring functions at the landfill site for a minimum of thirty years after closure. I n
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 postclosure care costs that will be incurred near or
after the date the landfill no long accepts waste. The recognition of these landfill closure and postclosure care
costs is based on the amount of the landfill used during the year. T he estimated liability for landfill closure and
postclosure care costs is $480,190 as of June 30, 2010, which is based on 31 percent usage (filled) of the
landfill. It is estimated that an additional $1,058,820 will be recognized as closure and postclosure care
expenses between the date of the balance sheet and the date the landfill is currently expected to be filled to
capacity. T he estimated total current cost of the landfill closure and postclosure care ($1,549,000) 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, 2010. However, the actual cost of closure and postclosure care may b e
higher due to inflation, changes in technology, or changes in landfill laws and regulations.
In addition, the Town is required b y State and Federal laws and regulations to make annual contributions to
finance closure and postclosure care. The Town is in compliance with these requirements, and at June 30,
2010, cash of $915,816 is part of the pooled funds held b y the Town and is presented as restricted cash on the
statement of net assets.
61
STATE OF NEW MEXICO
Town of Taos
Notes to the Financial Statements
June 30, 2010
NOTE 15.Construction and Other Significant Commitments
The Town h as committed to pay for several construction contracts that were n ot completed a t J une 30, 2010 in
the amount of $10,820,805 as follows:
Project Description Contractor
Eco Park 2,179,594$ Lone Mountain Construction and Living Designs
NM 68 Enhancement 287,060 Advantage Asphalt
Wastewater Treatment Plant 8,354,151 AUI, Inc., Zenon, and Souder, Miller & Associates
Upgrades
10,820,805$
Contract Amount
Remaining
NOTE 16.Subsequent Events
LGIP Investment in the Reserve Primary Fund
The New Mexico State Treasurer’s Office invested a portion of the Local Government Investment Pool (LGIP)
in the Reserve Primar y Fund (“the Fund”), a money market fund, in fiscal years 2006, 2007, 2008 and 2009.
On September 15, 2008, the balance of the LGIP’s investment in the Fund was $381.7 million. On September
16, 2008, The Reserve Primar y Fund’s net asset value fell below $1.00 and holdings in the Fund were frozen.
On July 15, 2010, the Reserve announced that it will begin its seventh distribution to Primar y Fund
shareholders on or about July 16, 2010. The distribution, in the amount of approximately $215 million,
represents approximately 67% of the Fund’s remaining asset value of $323 million as of the close of business
on July 9, 2010. Including this seventh distribution, $50.7 billion of Fund assets as of the close of business on
September 15, 2008, will have been returned to investors. There is $108 million still remaining with the
Reserve at this time and the State Treasurer’s Office has no information about timing nor amounts of potential
future distributions. As a result, the State Treasurer’s Office cannot anticipate what the actual loss to the LGIP
from The Reserve Primary Fund may be or when the actual loss may be realized. No actual loss has been
realized to date.
NOTE 17.Restricted Net Assets
The government-wide statement of net assets reports $7,362,097 of restricted net assets, all of which is
restricted b y enabling legislation. See pages 68 to 71 for descriptions of the related restrictions for special
revenue, debt service and capital projects funds.
62
STATE OF NEW MEXICO
Town of Taos
Notes to the Financial Statements
June 30, 2010
NOTE 18.Utility Revenues Pledged
The Town of Taos has pledged future revenues fr om 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 p rincipal, 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 a greement 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 b y the trustee, p ayable from and
constituting a lien upon the pledged revenues. The total principal and interest remaining to be paid on the
bonds is $516,600 and $417,646, respectively. Principal and interest paid for the current ye ar and total
customer net revenues were $40,678 and $1,348,652, respectively.
The Town of Taos has pledged future revenues fr om the water and sewer system, net of operation and
maintenance expenses, to repay $123,000 in Series 1993B Water & Sewer Revenue Bonds, issued in 1993.
The bonds are payable solely from utility customer net revenues and are payable through March 2033. The
pledged revenues shall be in an amount sufficient to pay p rincipal, 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 a greement reserve account, to the USDA or the Trustee, as its assignee, to be deposited in
the debt service reserve account or the bond a greement reserve account held b y 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 $101,000 a nd $84,095, respectively. Principal and interest paid for the current year and total customer
net revenues were $7,665 and $1,348,652, respectively.
The Town of Taos has pledged future revenues fr om the water and sewer system, net of operation and
maintenance expenses, to repay $1,315,000 in Series 1995A Utilty 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 a greement, 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 $1,106,000 and $920,557, respectively. Principal and interest paid for the current ye ar and total
customer net revenues were $77,708 and $1,348,652, respectively.
The Town of Taos has pledged future revenues fr om the water and sewer system, net of operation and
maintenance expenses, to repay $475,000 in Series 1998A Water & Sewer Revenue Bonds, issued in 1999.
The bonds are payable solely from utility customer net revenues and are payable through Januar y 2038. The
pledged revenues shall be in an amount sufficient to pay p rincipal, 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 a greement reserve account, to the USDA or the Trustee, as its assignee, to be deposited in
the debt service reserve account or the bond a greement reserve account held b y 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 $416,000 and $356,023, respectively. Principal and interest paid for the current ye ar and total
customer net revenues were $27,426 and $1,348,652,respectively.
63
STATE OF NEW MEXICO
Town of Taos
Notes to the Financial Statements
June 30, 2010
NOTE 18.Utility Revenues Pledged (continued)
The Town of Taos has pledged future revenues fr om the water and sewer system, net of operation and
maintenance expenses, to repay $250,000 in RUS Series 2000A Water & Sewer Loan, issued in 2000. The
loans are payable solely from utility customer net revenues and are payable through December 2040. The
pledged revenues shall be in an amount sufficient to pay p rincipal, premium, if any, interest and other amounts
due under the loan agreement, including an amount sufficient to cure any deficiencies in the debt service
account or the loan agreement reserve account, to the USDA or the Trustee, as its assignee, to be deposited in
the debt service reserve account or the loan agreement reserve account held b y the trustee, payable from and
constituting a lien upon the pledged revenues. T he total principal and interest remaining to be paid on the loan
is $228,000 and $230,250, respectively. Principal and interest paid for the current year and total customer net
revenues were $14,550 and $1,348,652, respectively.
The Town of Taos has pledged future revenues fr om the water and sewer system, net of operation and
maintenance expenses, to repay $950,391 in NMFA Series 2001A Water & Sewer Loan, issued in 2001. The
loans are payable solely from utility customer net revenues and are payable through May 2021. The pledged
revenues shall be in an amount sufficient to pay principal, premium, if any, interest and other amounts due
under the loan a greement, 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 a greement reserve account held by the trustee, payable from and constituting
a lien upon the pledged revenues. T he total principal and interest remaining to be paid on the loan is $553,947
and $144,402, respectively. Principal and interest paid for the current ye ar and total customer net revenues
were $67,967 and $1,348,652, respectively.
The Town of Taos has pledged future revenues from the distribution of the Municipal Environmental Services
Gross Receipts Tax revenue, to r epay $1,372,684 in NMFA Taos Regional Landfill Loan, issued in 2004. The
loans are payable solely from the Municipal Environmental Services GRT revenue and are payable through
May 2014. The pledged revenues shall be in an amount sufficient to pay principal, premium, if any, interest
and other amounts due under the loan a greement, including an amount sufficient to cure any d eficiencies in the
debt service account or the loan a greement reserve account, to the NMFA or the Trustee, as its a ssignee, to be
deposited in the debt service reserve account or the loan a greement reserve account held by t he trustee, payable
from and constituting a lien upon the pledged revenues. T he total principal and interest remaining to be paid on
the loan is $302,334 and $24,399, respectively. Principal and interest paid for the current ye ar and total
customer net revenues were $81,162 and $167,037, respectively.
The Town of Taos has pledged future revenues from the Taos Regional Landfill s ys tem, net of operation and
maintenance expenses, to repay $1,000,000 i n NMFA Series 2008A Landfill Loan, issued in 2008. T he loans
are payable solely from utility customer net revenues and are payable through May 2018. The pledged
revenues shall be in an amount sufficient to pay principal, premium, if any, interest and other amounts due
under the loan a greement, 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 a greement reserve account held by the trustee, payable from and constituting
a lien upon the pledged revenues. T he total principal and interest remaining to be paid on the loan is $828,734
and $106,628, respectively. Principal and interest paid for the current ye ar and total customer net revenues
were $112,126 and $167,037, respectively.
The Town of Taos has pledged future revenues from the Taos Wastewater project, net of operation and
maintenance expenses, to repay $130,000 in NMFA/WTB Water Project, issued in 2010. The loans are
payable solely from utility customer net revenues and are payable through May 2029. The pledged revenues
shall be in an amount sufficient to pay p rincipal, 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 a greement reserve account held by the trustee, payable from and constituting a lien
upon the pledged revenues. The total principal to be paid on the loan is $124,815 with no interest due.
Principal and for the current year and total customer net revenues were $23,926 and $1,348,652, respectively.
64
STATE OF NEW MEXICO
Town of Taos
Notes to the Financial Statements
June 30, 2010
NOTE 18.Utility Revenues Pledged (continued)
The Town of Taos has pledged future revenues from the Taos Wastewater project, net of operation and
maintenance expenses, to repay $130,000 in NMFA/WTB Water Project, issued in 2010. The loans are
payable solely from utility customer net revenues and are payable through May 2029. The pledged revenues
shall be in an amount sufficient to pay p rincipal, 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 a greement reserve account held by the trustee, payable from and constituting a lien
upon the pledged revenues. The total principal to be paid on the loan is $576,074 with no interest due.
Principal and for the current year and total customer net revenues were $5,185 and $1,348,652, respectively.
NOTE 19.Related Parties
The Town conducted tr ansactions with several entities which are considered related parties. T hese related party
transactions are as follows:
Vendor Related Party Amount
DMC Broadcasting Mayor Darren Cordova $ 2 9,841
Abeyta Engineering Councilmember Rudy Abeyta’s brother 40,199
In & Out Plumbing Assistant Town Manager – Abigail Adame’s father 13,612
MS Quick Stop Finance Director – Marietta Fambro’s brother 3,061
Dave’s Digital IT Manager – Reuben Martinez’s brother 1,333
Northern NM Job & Drug Screening CEDD – Matt Sprigg’s wife 1,763
Vallecito Courier Cust. Serv. Mgr. – Debbie Medina-Vigil’s husband 4,170
Toop Toops Bldg & Grounds Dir. – Manuel Pacheco’s sister-in-law 1,575
Jireh Electric Paralegal – Cyndee Perez’s husband 1,302
Torres Auto Body Police Admin. Assis. – Valerie Torres’ sister 966
65
(This page intentionally left blank)
66
SUPPLEMENTARY INFORMATION
67
STATE OF NEW MEXICO
Town of Taos
Nonmajor Governmental Funds
June 30, 2010
Special Revenue Funds
Fire Protection
To account for the operations and maintenance of the fire department. Financing is provided by an allotment from the State of New
Mexico Fire Marshall’s Office. State Statute Section 59A-53-2, NMSA, 1978 compilation, requires the allotment be used only to
operate fire departments.
Recreation
To account for establishing and maintaining recreational programs in the Town. Financing is provided by p rogram revenue and by a 1-
cent tax on cigarette sales, which is collected and distributed by the State of New Mexico. S tate Statute Section 7-12-15, NMSA, 1978
compilation requires this tax be used in the above manner.
Lodger’s Tax
To account for the operations of tourist facilities or for half of advertising, promoting and publicizing such facilities and tourist
attractions. Financing is provided by one and a half percent of a five percent tax on lodging gross receipts within the Town of Taos.
State Statute Section 4-6-41 provides for this tax to be imposed by t he Town. Revenues received a re p ursuant to the Lodger’s Tax Act
(Section 3-38-15, NMSA 1978). Monies in the Lodger’s 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 lodger’s tax receipts allocated for Civic Center operations and promotional expenditures, as well as the
revenues earned from Civic Center operations, including rentals, catering fees, and related charges for services. Authority is Town
Council resolution.
Domestic Violence Shelter
This fund was created to receive the appropriations and grants for the purpose of construction and maintaining the Domestic Violence
Shelter Home. Authority is Town Council resolution.
Public Transportation
To account for the portion of Lodger’s Tax receipts allocated for the purpose of providing transportation to the public. Authority is
Town Council resolution.
68
STATE OF NEW MEXICO
Town of Taos
Nonmajor Governmental Funds
June 30, 2010
Special Revenue Funds (continued)
Community Grants
To account for various small grants for various community purposes. Each grant is authorized b y the granting agency. The fund is
authorized b y 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.
¼ 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 Series 1988 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.
Communications
To account for money collected b y the Town from three other government entities to share centralized dispatch services throughout
the County of Taos. Funding is authorized b y a joint power agreement as authorized b y S ections 11-1-1 through 11-1-7 NMSA
1978.
69
STATE OF NEW MEXICO
Town of Taos
Nonmajor Governmental Funds
June 30, 2010
Debt Service Funds
2001 Gross Receipts Tax Revenue Bond Retirement
This fund was created with transfers fr om Gross Receipts Tax revenues for the purpose of accumulating monies for payment of
principal and interest on Series 2001 Gross Receipts Tax Revenue Bonds. Authority is Town Council resolution.
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.
1999 Gasoline Tax Revenue Bond Retirement
This fund was created with transfers from the Gas Tax Fund for the purpose of repayment of the Series 1999 Gasoline Tax Revenue
Bonds. Authority is Town Council resolution.
1999 Gasoline Tax Revenue Bond Reserve
This fund was created with transfers from the Gas Tax Fund for the purpose of accumulating monies for the payment of principal and
interest on Series 1999 Gasoline Tax Revenue Bonds. Authority is Town Council resolution.
2007 NMFA Land Purchase
This fund was created to be credited with transfers from the General Fund for the purpose of accumulating monies for payment of
principal and interest on the debt for repayment of land purchase. Authority is Town Council resolution.
70
STATE OF NEW MEXICO
Town of Taos
Nonmajor Governmental Funds
June 30, 2010
Capital Projects Funds
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.
Airport Construction
This 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.
Enhanced 911
This fund was created to receive grants and transfers for the purpose of expanding benefits of the basic 911 emergency telephone
number to achieve faster response time. Authority is Town Council resolution.
Vehicle Replacement
This fund is created to receive transfers from other funds for the purpose of purchasing vehicles for the Town of Taos. Authority is
Town Council resolution.
1994 Gross Receipts Tax Revenue Bond Acquisition
This fund was created to receive the 1994 Gross Receipts Tax Bond proceeds for the purpose of construction of affordable housing.
Authority is Town Council resolution.
1999 Gasoline Tax Acquisition
This fund was created to receive the bond proceeds and to account for the capital outlay associated with the bond issue. Authority is
Town Council resolution.
71
Fire Protection Recreation Lodger's Tax
Local
Government
Correction
Assets
Unrestricted cash and cash equivalents 58,369$ 1,972$ 111,794$ 23,449$
Restricted cash and cash equivalents - - - -
Investments 377,220 40,000 40,000 7,000
Receivables:
Other taxes - - 147,898 -
Other - - - -
Total assets 435,589$ 41,972$ 299,692$ 30,449$
Liabilities
Accounts payable -$ 495$ 5,950$ 8,255$
Accrued payroll - - 2,178 -
Deposits held in trust for others - - - -
Due to other funds - - - -
Total liabilities - 495 8,128 8,255
Fund balances
Reserved for:
Future debt service payments - - - -
Unreserved
Special revenue 435,589 41,477 291,564 22,194
Capital projects - - - -
Total fund balances 435,589 41,477 291,564 22,194
Total liabilities and fund balances 435,589$ 41,972$ 299,692$ 30,449$
STATE OF NEW MEXICO
The accompanying notes are an integral part of these financial statements
June 30, 2010
Special Revenue
Nonmajor Governmental Funds
Combining Balance Sheet
Town of Taos
72
Statement A-1
Page 1 of 3
Law Enforcement
Protection Civic Center
Domestic
Violence Shelter
Public
Transportation
Community
Grants
Municipal Road
Gasoline Tax
977$ 43,438$ 1$ -$ 1,998$ -$
- 1,853 - - - -
- 25,000 - - 180,000 -
- - - - - 8,318
- - - 26,228 32,075 -
977$ 70,291$ 1$ 26,228$ 214,073$ 8,318$
464$ 3,359$ -$ 3,828$ 2,962$ -$
- 3,788 - 3,945 697 -
- 4,853 - - - -
- - - 15,496 - -
464 12,000 - 23,269 3,659 -
- - - - - -
513 58,291 1 2,959 210,414 8,318
- - - - - -
513 58,291 1 2,959 210,414 8,318
977$ 70,291$ 1$ 26,228$ 214,073$ 8,318$
Special Revenue
73
1/4 Cent
Municipal Gross
Receipts Tax Communications
2001 Gross
Receipts Tax
Revenue Bond
Retirement
2008 Gross
Receipts Tax
Revenue Bond
Retirement
Assets
Unrestricted cash and cash equivalents -$ 48,905$ 73$ 230$
Restricted cash and cash equivalents - - - -
Investments 39,038 150,000 - -
Receivables:
Other taxes 166,503 - - -
Other - - - -
Total assets 205,541$ 198,905$ 73$ 230$
Liabilities
Accounts payable -$ 42$ -$ -$
Accrued payroll - 6,503 - -
Deposits held in trust for others - - - -
Due to other funds - - - -
Total liabilities - 6,545 - -
Fund balances
Reserved for:
Future debt service payments - - 73 230
Unreserved
Special revenue 205,541 192,360 - -
Capital projects - - - -
Total fund balances 205,541 192,360 73 230
Total liabilities and fund balances 205,541$ 198,905$ 73$ 230$
The accompanying notes are an integral part of these financial statements
June 30, 2010
STATE OF NEW MEXICO
Town of Taos
Nonmajor Governmental Funds
Special Revenue Debt Service
Combining Balance Sheet
74
Statement A-1
Page 2 of 3
1999 Gasoline
Tax Revenue
Bond Retirement
1999 Gasoline
Tax Revenue
Bond Reserve
2007 NMFA
Land Purchase
Facilities
Improvements
Airport
Construction Enhanced 911
69,426$ -$ 206$ 33,008$ -$ 309$
- - 21,451 - - -
- 195,500 - - - 25,000
- - - - - -
- - - 826,841 23,323 -
69,426$ 195,500$ 21,657$ 859,849$ 23,323$ 25,309$
-$ -$ -$ 101,592$ 2,181$ -$
- - - - - -
- - - - - -
- - - - 2,452 -
- - - 101,592 4,633 -
69,426 195,500 21,657 - - -
- - - - - -
- - - 758,257 18,690 25,309
69,426 195,500 21,657 758,257 18,690 25,309
69,426$ 195,500$ 21,657$ 859,849$ 23,323$ 25,309$
Debt Service Capital Projects
75
STATE OF NEW MEXICO Statement A-1
Town of Taos Page 3 of 3
Vehicle
Replacement
1994 Gross
Receipts Tax
Revenue Bond
Acquisition
1999 Gasoline
Tax Acquisition
Total
Nonmajor
Governmental
Funds
Assets
Unrestricted cash and cash equivalents 460$ 8,353$ 274,663$ 677,631$
Restricted cash and cash equivalents - - - 23,304
Investments 47,000 652,438 58,382 1,836,578
Receivables:
Other taxes - - - 322,719
Other 60,503 - 90,999 1,059,969
Total assets 107,963$ 660,791$ 424,044$ 3,920,201$
Liabilities
Accounts payable -$ 4,469$ 190,731$ 324,328$
Accrued payroll - - - 17,111
Deposits held in trust for others - - - 4,853
Due to other funds - - 24,435 42,383
Total liabilities - 4,469 215,166 388,675
Fund balances
Reserved for:
Future debt service payments - - - 286,886
Unreserved
Special revenue - - - 1,469,221
Capital projects 107,963 656,322 208,878 1,775,419
Total fund balances 107,963 656,322 208,878 3,531,526
Total liabilities and fund balances 107,963$ 660,791$ 424,044$ 3,920,201$
Nonmajor Governmental Funds
Combining Balance Sheet
June 30, 2010
The accompanying notes are an integral part of these financial statements
Capital Projects
76
Fire Protection Recreation Lodger's Tax
Local
Governmental
Correction
Revenues
Taxes
Gross receipts -$ -$ -$ -$
Gasoline and motor vehicle taxes - - - -
Other - 15,757 922,117 -
Intergovernmental income
Federal operating grants - - - -
Federal capital grants - - - -
State operating grants 236,430 - - -
State capital grants - - - -
Charges for services - 15,494 36,552 -
Licenses and fees - - - 36,532
Interest income - - - -
Miscellaneous - - 16,141 -
Total revenues 236,430 31,251 974,810 36,532
Expenditures
Current
General government - - 638,066 -
Public safety 71,350 - - 103,166
Public works - - - -
Culture and recreation - 76,880 - -
Health and welfare - - - -
Capital outlay 37,770 - 4,405 -
Debt service
Principal - - - -
Interest - - - -
Bond issuance costs - - - -
Total expenditures 109,120 76,880 642,471 103,166
Excess (deficiency) of revenues over
expenditures 127,310 (45,629) 332,339 (66,634)
Other financing sources (uses)
Transfers in - - 660,473 86,000
Transfers out - - (777,283) -
Total other financing sources (uses)- - (116,810) 86,000
Net change in fund balances 127,310 (45,629) 215,529 19,366
Fund balances - beginning of year 308,279 87,106 76,035 2,828
Fund balances - end of year 435,589$ 41,477$ 291,564$ 22,194$
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances
The accompanying notes are an integral part of these financial statements
Special Revenue
For the Year Ended June 30, 2010
STATE OF NEW MEXICO
Town of Taos
Nonmajor Governmental Funds
77
Statement A-2
Page 1 of 3
Law Enforcement
Protection Civic Center
Domestic
Violence Shelter
Public
Transportation
Community
Grants
Municipal Road
Gasoline Tax
-$ -$ -$ -$ -$ -$
- - - - - 81,355
- - - - - -
- - 149,549 - - -
- - - - - -
- - - 300,976 346,941 -
- - - - - -
- 47,518 - 54,575 - -
- 500 - - - -
- - - - - -
- 300 - 1,380 47 -
- 48,318 149,549 356,931 346,988 81,355
- - - - 436,486 -
36,516 - - - - -
- - - - - -
- 408,881 - - - -
- - 150,000 496,369 - -
- - - 42,707 - -
- - - - - -
- - - - - -
- - - - - -
36,516 408,881 150,000 539,076 436,486 -
(36,516) (360,563) (451) (182,145) (89,498) 81,355
- 385,482 - 181,375 - -
- - - - - (76,774)
- 385,482 - 181,375 - (76,774)
(36,516) 24,919 (451) (770) (89,498) 4,581
37,029 33,372 452 3,729 299,912 3,737
513$ 58,291$ 1$ 2,959$ 210,414$ 8,318$
Special Revenue
78
1/4 Cent
Municipal Gross
Receipts Tax Communications
2001 Gross
Receipts Tax
Revenue Bond
Retirement
2008 Gross
Receipts Tax
Revenue Bond
Retirement
Revenues
Taxes
Gross receipts 1,005,317$ -$ -$ -$
Gasoline and motor vehicle taxes - - - -
Other - - - -
Intergovernmental income
Federal operating grants - - - -
Federal capital grants - - - -
State operating grants - - - -
State capital grants - - - -
Charges for services - 294,592 - -
Licenses and fees - - - -
Interest income - - 823 -
Miscellaneous - - - -
Total revenues 1,005,317 294,592 823 -
Expenditures
Current
General government - 545,266 - -
Public safety - - - -
Public works - - - -
Culture and recreation - - - -
Health and welfare - - - -
Capital outlay - - - -
Debt service
Principal - - 49,866 235,000
Interest - - 24,105 255,825
Bond issuance costs - - 32,712 -
Total expenditures - 545,266 106,683 490,825
Excess (deficiency) of revenues over
expenditures 1,005,317 (250,674) (105,860) (490,825)
Other financing sources (uses)
Transfers in - 258,948 105,860 490,825
Transfers out (869,878) - - -
Total other financing sources (uses)(869,878) 258,948 105,860 490,825
Net change in fund balances 135,439 8,274 - -
Fund balances - beginning of year 70,102 184,086 73 230
Fund balances - end of year 205,541$ 192,360$ 73$ 230$
The accompanying notes are an integral part of these financial statements
For the Year Ended June 30, 2010
Debt ServiceSpecial Revenue
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances
STATE OF NEW MEXICO
Town of Taos
Nonmajor Governmental Funds
79
Statement A-2
Page 2 of 3
1999 Gasoline
Tax Revenue
Bond Retirement
1999 Gasoline
Tax Revenue
Bond Reserve
2007 NMFA
Land Purchase
Facilities
Improvements
Airport
Construction Enhanced 911
-$ -$ -$ -$ -$ -$
- - - - - -
- - - - - -
- - - - - -
- - - - 852,690 -
- - - 19,620 - -
- - - 1,000,181 78,692 -
- - - - - -
- - - - - -
- 3,374 72 - - -
- - - 61,349 - -
- 3,374 72 1,081,150 931,382 -
500 - 1,978 - - -
- - - - - -
- - - 128,392 194,908 -
- - - - - -
- - - - - -
- - - 1,099,770 731,907 -
165,000 - 89,293 18,000 - -
28,947 - 22,436 - - -
- - - - - -
194,447 - 113,707 1,246,162 926,815 -
(194,447) 3,374 (113,635) (165,012) 4,567 -
237,259 - 110,838 846,604 16,000 -
- (3,374) (337) (5,000) - -
237,259 (3,374) 110,501 841,604 16,000 -
42,812 - (3,134) 676,592 20,567 -
26,614 195,500 24,791 81,665 (1,877) 25,309
69,426$ 195,500$ 21,657$ 758,257$ 18,690$ 25,309$
Debt Service Capital Projects
80
STATE OF NEW MEXICO Statement A-2
Town of Taos Page 3 of 3
Vehicle
Replacement
1994 Gross
Receipts Tax
Revenue Bond
Acquisition
1999 Gasoline
Tax Acquisition
Total Nonmajor
Governmental
Funds
Revenues
Taxes
Gross receipts -$ -$ -$ 1,005,317$
Gasoline and motor vehicle taxes - - - 81,355
Other - - - 937,874
Intergovernmental income
Federal operating grants - - - 149,549
Federal capital grants 30,149 - - 882,839
State operating grants - - - 903,967
State capital grants 30,353 - 547,354 1,656,580
Charges for services - - 7,500 456,231
Licenses and fees - - - 37,032
Interest income - 1,209 509 5,987
Miscellaneous - 4,000 - 83,217
Total revenues 60,502 5,209 555,363 6,199,948
Expenditures
Current
General government 6,183 - - 1,628,479
Public safety - - - 211,032
Public works - 122,332 - 445,632
Culture and recreation - - - 485,761
Health and welfare - - - 646,369
Capital outlay 149,384 - 975,649 3,041,592
Debt service
Principal - - - 557,159
Interest - - - 331,313
Bond issuance costs - - - 32,712
Total expenditures 155,567 122,332 975,649 7,380,049
Excess (deficiency) of revenues over
expenditures (95,065) (117,123) (420,286) (1,180,101)
Other financing sources (uses)
Transfers in - - 35,000 3,414,664
Transfers out - - (38,051) (1,770,697)
Total other financing sources (uses)- - (3,051) 1,643,967
Net change in fund balances (95,065) (117,123) (423,337) 463,866
Fund balances - beginning of year 203,028 773,445 632,215 3,067,660
Fund balances - end of year 107,963$ 656,322$ 208,878$ 3,531,526$
The accompanying notes are an integral part of these financial statements
Nonmajor Governmental Funds
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances
Capital Projects
For the Year Ended June 30, 2010
81
STATE OF NEW MEXICO Statement B-1
Variances
Actual
Favorable
(Unfavorable)
Original Final (GAAP Basis)Final to Actual
Revenues
Taxes
Property taxes -$ -$ -$ -$
Gross receipts - - - -
Gasoline and motor vehicle - - - -
Other - - - -
Intergovernmental income
Federal operating grants - - - -
Federal capital grants - - - -
State operating grants 178,836 236,430 236,430 -
State capital grants - - - -
Charges for services - - - -
Licenses and fees - - - -
Interest income - - - -
Miscellaneous - - - -
Total revenues 178,836 236,430 236,430 -
Expenditures
Current
General government - - - -
Public safety 392,115 449,709 71,350 378,359
Public works - - - -
Culture and recreation - - - -
Health and welfare - - - -
Capital outlay 95,000 95,000 37,770 57,230
Debt service
Principal - - - -
Interest - - - -
Total expenditures 487,115 544,709 109,120 435,589
Excess (deficiency) of revenues over
expenditures (308,279) (308,279) 127,310 435,589
Other financing sources (uses)
Designated cash (budgeted increase in cash)308,279 308,279 - (308,279)
Transfers in - - - -
Transfers out - - - -
Total other financing sources (uses)308,279 308,279 - (308,279)
Net change in fund balance - - 127,310 127,310
Fund balance - beginning of year - - 308,279 308,279
Fund balance - end of year -$ -$ 435,589$ 435,589$
The accompanying notes are an integral part of these financial statements
Budgeted Amounts
Town of Taos
Fire Protection Special Revenue Fund
Statement of Revenues, Expenditures and Changes in Fund Balance
Budget (GAAP Basis) and Actual
For the Year Ended June 30, 2010
82
STATE OF NEW MEXICO Statement B-2
Variances
Actual
Favorable
(Unfavorable)
Original Final (GAAP Basis)Final to Actual
Revenues
Taxes
Property taxes -$ -$ -$ -$
Gross receipts - - - -
Gasoline and motor vehicle - - - -
Other 19,250 19,250 15,757 (3,493)
Intergovernmental income -
Federal operating grants - - - -
Federal capital grants - - - -
State operating grants - - - -
State capital grants - - - -
Charges for services 12,179 12,179 15,494 3,315
Licenses and fees - - - -
Interest income - - - -
Miscellaneous - - - -
Total revenues 31,429 31,429 31,251 (178)
Expenditures
Current
General government - - - -
Public safety - - - -
Public works - - - -
Culture and recreation 76,895 76,895 76,880 15
Health and welfare - - - -
Capital outlay - - - -
Debt service
Principal - - - -
Interest - - - -
Total expenditures 76,895 76,895 76,880 15
Excess (deficiency) of revenues over expenditures (45,466) (45,466) (45,629) (163)
Other financing sources (uses)
Designated cash (budgeted increase in cash)45,466 45,466 - (45,466)
Transfers in - - - -
Transfers out - - - -
Total other financing sources (uses)45,466 45,466 - (45,466)
Net change in fund balance - - (45,629) (45,629)
Fund balance - beginning of year - - 87,106 87,106
Fund balance - end of year -$ -$ 41,477$ 41,477$
The accompanying notes are an integral part of these financial statements
Budgeted Amounts
Town of Taos
Recreation Special Revenue Fund
Statement of Revenues, Expenditures and Changes in Fund Balance
Budget (GAAP Basis) and Actual
For the Year Ended June 30, 2010
83
STATE OF NEW MEXICO Statement B-3
Variances
Actual
Favorable
(Unfavorable)
Original Final (GAAP Basis)Final to Actual
Revenues
Taxes
Property taxes -$ -$ -$ -$
Gross receipts - - - -
Gasoline and motor vehicle - - - -
Other 887,574 856,657 922,117 65,460
Intergovernmental income -
Federal operating grants - - - -
Federal capital grants - - - -
State operating grants - - - -
State capital grants - - - -
Charges for services 19,200 19,200 36,552 17,352
Licenses and fees - - - -
Interest income - - - -
Miscellaneous 4,350 4,350 16,141 11,791
Total revenues 911,124 880,207 974,810 94,603
Expenditures
Current
General government 676,102 728,187 638,066 90,121
Public safety - - - -
Public works - - - -
Culture and recreation - - - -
Health and welfare - - - -
Capital outlay 10,000 4,406 4,405 1
Debt service
Principal - - - -
Interest - - - -
Total expenditures 686,102 732,593 642,471 90,122
Excess (deficiency) of revenues over expenditures 225,022 147,614 332,339 184,725
Other financing sources (uses)
Designated cash (budgeted increase in cash)35,908 35,908 - (35,908)
Transfers in 613,982 660,473 660,473 -
Transfers out (874,912) (843,995) (777,283) 66,712
Total other financing sources (uses)(225,022) (147,614) (116,810) 30,804
Net change in fund balance - - 215,529 215,529
Fund balance - beginning of year - - 76,035 76,035
Fund balance - end of year -$ -$ 291,564$ 291,564$
The accompanying notes are an integral part of these financial statements
Budgeted Amounts
Town of Taos
Lodger's Tax Special Revenue Fund
Statement of Revenues, Expenditures and Changes in Fund Balance
Budget (GAAP Basis) and Actual
For the Year Ended June 30, 2010
84
STATE OF NEW MEXICO Statement B-4
Variances
Actual
Favorable
(Unfavorable)
Original Final (GAAP Basis)Final to Actual
Revenues
Taxes
Property taxes -$ -$ -$ -$
Gross receipts - - - -
Gasoline and motor vehicle - - - -
Other - - - -
Intergovernmental income
Federal operating grants - - - -
Federal capital grants - - - -
State operating grants - - - -
State capital grants - - - -
Charges for services - - - -
Licenses and fees 52,140 52,140 36,532 (15,608)
Interest income - - - -
Miscellaneous - - - -
Total revenues 52,140 52,140 36,532 (15,608)
Expenditures
Current
General government - - - -
Public safety 94,000 131,000 103,166 27,834
Public works - - - -
Culture and recreation - - - -
Health and welfare - - - -
Capital outlay - - - -
Debt service
Principal - - - -
Interest - - - -
Total expenditures 94,000 131,000 103,166 27,834
Excess (deficiency) of revenues over expenditures (41,860) (78,860) (66,634) 12,226
Other financing sources (uses)
Designated cash (budgeted increase in cash)7,860 7,860 - (7,860)
Transfers in 34,000 71,000 86,000 15,000
Transfers out - - - -
Total other financing sources (uses)41,860 78,860 86,000 7,140
Net change in fund balance - - 19,366 19,366
Fund balance - beginning of year - - 2,828 2,828
Fund balance - end of year -$ -$ 22,194$ 22,194$
The accompanying notes are an integral part of these financial statements
Budgeted Amounts
Town of Taos
Local Government Correction Special Revenue Fund
Statement of Revenues, Expenditures and Changes in Fund Balance
Budget (GAAP Basis) and Actual
For the Year Ended June 30, 2010
85
STATE OF NEW MEXICO Statement B-5
Variances
Actual
Favorable
(Unfavorable)
Original Final (GAAP Basis)Final to Actual
Revenues
Taxes
Property taxes -$ -$ -$ -$
Gross receipts - - - -
Gasoline and motor vehicle - - - -
Other - - - -
Intergovernmental income
Federal operating grants - - - -
Federal capital grants - - - -
State operating grants 32,000 32,000 - (32,000)
State capital grants - - - -
Charges for services - - - -
Licenses and fees - - - -
Interest income - - - -
Miscellaneous - - - -
Total revenues 32,000 32,000 - (32,000)
Expenditures
Current
General government - - - -
Public safety 32,000 37,209 36,516 693
Public works - - - -
Culture and recreation - - - -
Health and welfare - - - -
Capital outlay - - - -
Debt service
Principal - - - -
Interest - - - -
Total expenditures 32,000 37,209 36,516 693
Excess (deficiency) of revenues over expenditures - (5,209) (36,516) (31,307)
Other financing sources (uses)
Designated cash (budgeted increase in cash)- 5,209 - (5,209)
Transfers in - - - -
Transfers out - - - -
Total other financing sources (uses)- 5,209 - (5,209)
Net change in fund balance - - (36,516) (36,516)
Fund balance - beginning of year - - 37,029 37,029
Fund balance - end of year -$ -$ 513$ 513$
The accompanying notes are an integral part of these financial statements
Budgeted Amounts
Town of Taos
Law Enforcement Protection Special Revenue Fund
Statement of Revenues, Expenditures and Changes in Fund Balance
Budget (GAAP Basis) and Actual
For the Year Ended June 30, 2010
86
STATE OF NEW MEXICO Statement B-6
Variances
Actual
Favorable
(Unfavorable)
Original Final (GAAP Basis)Final to Actual
Revenues
Taxes
Property taxes -$ -$ -$ -$
Gross receipts - - - -
Gasoline and motor vehicle - - - -
Other - - - -
Intergovernmental income
Federal operating grants - - - -
Federal capital grants - - - -
State operating grants - - - -
State capital grants - - - -
Charges for services 64,645 47,200 47,518 318
Licenses and fees 200 200 500 300
Interest income - - - -
Miscellaneous 200 200 300 100
Total revenues 65,045 47,600 48,318 718
Expenditures
Current
General government - - - -
Public safety - - - -
Public works - - - -
Culture and recreation 490,498 455,793 408,881 46,912
Health and welfare - - - -
Capital outlay - - - -
Debt service
Principal - - - -
Interest - - - -
Total expenditures 490,498 455,793 408,881 46,912
Excess (deficiency) of revenues over expenditures (425,453) (408,193) (360,563) 47,630
Other financing sources (uses)
Designated cash (budgeted increase in cash)16,119 17,119 - (17,119)
Transfers in 409,334 391,074 385,482 (5,592)
Transfers out - - - -
Total other financing sources (uses)425,453 408,193 385,482 (22,711)
Net change in fund balance - - 24,919 24,919
Fund balance - beginning of year - - 33,372 33,372
Fund balance - end of year -$ -$ 58,291$ 58,291$
The accompanying notes are an integral part of these financial statements
Budgeted Amounts
Town of Taos
Civic Center Special Revenue Fund
Statement of Revenues, Expenditures and Changes in Fund Balance
Budget (GAAP Basis) and Actual
For the Year Ended June 30, 2010
87
STATE OF NEW MEXICO Statement B-7
Variances
Actual
Favorable
(Unfavorable)
Original Final (GAAP Basis)Final to Actual
Revenues
Taxes
Property taxes -$ -$ -$ -$
Gross receipts - - - -
Gasoline and motor vehicle - - - -
Other - - - -
Intergovernmental income
Federal operating grants 150,000 150,000 149,549 (451)
Federal capital grants - - - -
State operating grants - - - -
State capital grants - - - -
Charges for services - - - -
Licenses and fees - - - -
Interest income - - - -
Miscellaneous - - - -
Total revenues 150,000 150,000 149,549 (451)
Expenditures
Current
General government - - - -
Public safety - - - -
Public works - - - -
Culture and recreation - - - -
Health and welfare 150,000 150,000 150,000 -
Capital outlay - - - -
Debt service
Principal - - - -
Interest - - - -
Total expenditures 150,000 150,000 150,000 -
Excess (deficiency) of revenues over expenditures - - (451) (451)
Other financing sources (uses)
Designated cash (budgeted increase in cash)- - - -
Transfers in - - - -
Transfers out - - - -
Total other financing sources (uses)- - - -
Net change in fund balance - - (451) (451)
Fund balance - beginning of year - - 452 452
Fund balance - end of year -$ -$ 1$ 1$
The accompanying notes are an integral part of these financial statements
Budgeted Amounts
Town of Taos
Domestic Violence Shelter Special Revenue Fund
Statement of Revenues, Expenditures and Changes in Fund Balance
Budget (GAAP Basis) and Actual
For the Year Ended June 30, 2010
88
STATE OF NEW MEXICO Statement B-8
Variances
Actual
Favorable
(Unfavorable)
Original Final (GAAP Basis)Final to Actual
Revenues
Taxes
Property taxes -$ -$ -$ -$
Gross receipts - - - -
Gasoline and motor vehicle - - - -
Other - - - -
Intergovernmental income
Federal operating grants - - - -
Federal capital grants - - - -
State operating grants 327,552 329,382 300,976 (28,406)
State capital grants - - - -
Charges for services 55,000 55,000 54,575 (425)
Licenses and fees - - - -
Interest income - - - -
Miscellaneous - - 1,380 1,380
Total revenues 382,552 384,382 356,931 (27,451)
Expenditures
Current
General government - - - -
Public safety - - - -
Public works - - - -
Culture and recreation - - - -
Health and welfare 508,832 497,740 496,369 1,371
Capital outlay 40,213 42,706 42,707 (1)
Debt service
Principal - - - -
Interest - - - -
Total expenditures 549,045 540,446 539,076 1,370
Excess (deficiency) of revenues over expenditures (166,493) (156,064) (182,145) (26,081)
Other financing sources (uses)
Designated cash (budgeted increase in cash)(7,150) (48,431) - 48,431
Transfers in 173,643 204,495 181,375 (23,120)
Transfers out - - - -
Total other financing sources (uses)166,493 156,064 181,375 25,311
Net change in fund balance - - (770) (770)
Fund balance - beginning of year - - 3,729 3,729
Fund balance - end of year -$ -$ 2,959$ 2,959$
The accompanying notes are an integral part of these financial statements
Budgeted Amounts
Town of Taos
Public Transportation Special Revenue Fund
Statement of Revenues, Expenditures and Changes in Fund Balance
Budget (GAAP Basis) and Actual
For the Year Ended June 30, 2010
89
STATE OF NEW MEXICO Statement B-9
Variances
Actual
Favorable
(Unfavorable)
Original Final (GAAP Basis)Final to Actual
Revenues
Taxes
Property taxes -$ -$ -$ -$
Gross receipts - - - -
Gasoline and motor vehicle - - - -
Other - - - -
Intergovernmental income
Federal operating grants - - - -
Federal capital grants - - - -
State operating grants 481,445 657,221 346,941 -
State capital grants - - - -
Charges for services - - - -
Licenses and fees - - - -
Interest income - - - -
Miscellaneous - - 47 47
Total revenues 481,445 657,221 346,988 47
Expenditures
Current
General government 689,888 889,360 436,486 452,874
Public safety - - - -
Public works - - - -
Culture and recreation - - - -
Health and welfare - - - -
Capital outlay 78,460 64,764 - 64,764
Debt service
Principal - - - -
Interest - - - -
Total expenditures 768,348 954,124 436,486 517,638
Excess (deficiency) of revenues over expenditures (286,903) (296,903) (89,498) 517,685
Other financing sources (uses)
Designated cash (budgeted increase in cash)241,903 241,903 - (241,903)
Transfers in 45,000 55,000 - (55,000)
Transfers out - - - -
Total other financing sources (uses)286,903 296,903 - (296,903)
Net change in fund balance - - (89,498) 220,782
Fund balance - beginning of year - - 299,912 299,912
Fund balance - end of year -$ -$ 210,414$ 520,694$
The accompanying notes are an integral part of these financial statements
Budgeted Amounts
Town of Taos
Community Grants Special Revenue Fund
Statement of Revenues, Expenditures and Changes in Fund Balance
Budget (GAAP Basis) and Actual
For the Year Ended June 30, 2010
90
STATE OF NEW MEXICO Statement B-10
Variances
Actual
Favorable
(Unfavorable)
Original Final (GAAP Basis)Final to Actual
Revenues
Taxes
Property taxes -$ -$ -$ -$
Gross receipts - - - -
Gasoline and motor vehicle 56,226 88,605 81,355 (7,250)
Other - - - -
Intergovernmental income -
Federal operating grants - - - -
Federal capital grants - - - -
State operating grants - - - -
State capital grants - - - -
Charges for services - - - -
Licenses and fees - - - -
Interest income - - - -
Miscellaneous - - - -
Total revenues 56,226 88,605 81,355 (7,250)
Expenditures
Current
General government - - - -
Public safety - - - -
Public works - - - -
Culture and recreation - - - -
Health and welfare - - - -
Capital outlay - - - -
Debt service
Principal - - - -
Interest - - - -
Total expenditures - - - -
Excess (deficiency) of revenues over expenditures 56,226 88,605 81,355 (7,250)
Other financing sources (uses)
Designated cash (budgeted increase in cash)- - - -
Transfers in - - - -
Transfers out (56,226) (88,605) (76,774) 11,831
Total other financing sources (uses)(56,226) (88,605) (76,774) 11,831
Net change in fund balance - - 4,581 4,581
Fund balance - beginning of year - - 3,737 3,737
Fund balance - end of year -$ -$ 8,318$ 8,318$
The accompanying notes are an integral part of these financial statements
Budgeted Amounts
Town of Taos
Municipal Road Gasoline Tax Special Revenue Fund
Statement of Revenues, Expenditures and Changes in Fund Balance
Budget (GAAP Basis) and Actual
For the Year Ended June 30, 2010
91
STATE OF NEW MEXICO Statement B-11
Variances
Actual
Favorable
(Unfavorable)
Original Final (GAAP Basis)Final to Actual
Revenues
Taxes
Property taxes -$ -$ -$ -$
Gross receipts 954,698 911,770 1,005,317 93,547
Gasoline and motor vehicle - - - -
Other - - - -
Intergovernmental income -
Federal operating grants - - - -
Federal capital grants - - - -
State operating grants - - - -
State capital grants - - - -
Charges for services - - - -
Licenses and fees - - - -
Interest income - - - -
Miscellaneous - - - -
Total revenues 954,698 911,770 1,005,317 93,547
Expenditures
Current
General government - - - -
Public safety - - - -
Public works - - - -
Culture and recreation - - - -
Health and welfare - - - -
Capital outlay - - - -
Debt service
Principal - - - -
Interest - - - -
Total expenditures - - - -
Excess (deficiency) of revenues over expenditures 954,698 911,770 1,005,317 93,547
Other financing sources (uses)
Designated cash (budgeted increase in cash)- - - -
Transfers in - - - -
Transfers out (954,698) (911,770) (869,878) 41,892
Total other financing sources (uses)(954,698) (911,770) (869,878) 41,892
Net change in fund balance - - 135,439 135,439
Fund balance - beginning of year - - 70,102 70,102
Fund balance - end of year -$ -$ 205,541$ 205,541$
The accompanying notes are an integral part of these financial statements
Budgeted Amounts
Town of Taos
1/4 Cent Municipal Gross Receipts Tax Special Revenue Fund
Statement of Revenues, Expenditures and Changes in Fund Balance
Budget (GAAP Basis) and Actual
For the Year Ended June 30, 2010
92
STATE OF NEW MEXICO Statement B-12
Variances
Actual
Favorable
(Unfavorable)
Original Final (GAAP Basis)Final to Actual
Revenues
Taxes
Property taxes -$ -$ -$ -$
Gross receipts - - - -
Gasoline and motor vehicle - - - -
Other - - - -
Intergovernmental income
Federal operating grants - - - -
Federal capital grants - - - -
State operating grants - - - -
State capital grants - - - -
Charges for services 329,611 315,963 294,592 (21,371)
Licenses and fees - - - -
Interest income - - - -
Miscellaneous - - - -
Total revenues 329,611 315,963 294,592 (21,371)
Expenditures
Current
General government 605,575 578,279 545,266 33,013
Public safety - - - -
Public works - - - -
Culture and recreation - - - -
Health and welfare - - - -
Capital outlay - - - -
Debt service
Principal - - - -
Interest - - - -
Total expenditures 605,575 578,279 545,266 33,013
Excess (deficiency) of revenues over expenditures (275,964) (262,316) (250,674) 11,642
Other financing sources (uses)
Designated cash (budgeted increase in cash)3,368 3,368 - (3,368)
Transfers in 272,596 258,948 258,948 -
Transfers out - - - -
Total other financing sources (uses)275,964 262,316 258,948 (3,368)
Net change in fund balance - - 8,274 8,274
Fund balance - beginning of year - - 184,086 184,086
Fund balance - end of year -$ -$ 192,360$ 192,360$
The accompanying notes are an integral part of these financial statements
Budgeted Amounts
Town of Taos
Communications Special Revenue Fund
Statement of Revenues, Expenditures and Changes in Fund Balance
Budget (GAAP Basis) and Actual
For the Year Ended June 30, 2010
93
STATE OF NEW MEXICO Statement B-13
Variances
Actual
Favorable
(Unfavorable)
Original Final (GAAP Basis)Final to Actual
Revenues
Taxes
Property taxes -$ -$ -$ -$
Gross receipts - - - -
Gasoline and motor vehicle - - - -
Other - - - -
Intergovernmental income
Federal operating grants - - - -
Federal capital grants - - - -
State operating grants - - - -
State capital grants - - - -
Charges for services - - - -
Licenses and fees - - - -
Interest income - - 823 823
Miscellaneous - - - -
Total revenues - - 823 823
Expenditures
Current
General government - - - -
Public safety - - - -
Public works - - - -
Culture and recreation - - - -
Health and welfare - - - -
Capital outlay - - - -
Debt service
Principal 105,065 75,874 49,866 26,008
Interest 65,602 51,865 24,105 27,760
Total expenditures 170,667 127,739 73,971 53,768
Excess (deficiency) of revenues over expenditures (170,667) (127,739) (73,148) 54,591
Other financing sources (uses)
Designated cash (budgeted increase in cash)(333) (333) - 333
Transfers in 171,000 128,072 105,860 (22,212)
Transfers out - - - -
Total other financing sources (uses)170,667 127,739 105,860 (21,879)
Net change in fund balance - - 32,712 32,712
Fund balance - beginning of year - - 73 73
Fund balance - end of year -$ -$ 32,785$ 32,785$
The accompanying notes are an integral part of these financial statements
Budgeted Amounts
Town of Taos
2001 Gross Receipts Tax Revenue Bond Retirement Debt Service Fund
Statement of Revenues, Expenditures and Changes in Fund Balance
Budget (GAAP Basis) and Actual
For the Year Ended June 30, 2010
94
STATE OF NEW MEXICO Statement B-14
Variances
Actual
Favorable
(Unfavorable)
Original Final (GAAP Basis)Final to Actual
Revenues
Taxes
Property taxes -$ -$ -$ -$
Gross receipts - - - -
Gasoline and motor vehicle - - - -
Other - - - -
Intergovernmental income -
Federal operating grants - - - -
Federal capital grants - - - -
State operating grants - - - -
State capital grants - - - -
Charges for services - - - -
Licenses and fees - - - -
Interest income - - - -
Miscellaneous - - - -
Total revenues - - - -
Expenditures
Current
General government - - - -
Public safety - - - -
Public works - - - -
Culture and recreation - - - -
Health and welfare - - - -
Capital outlay - - - -
Debt service
Principal 235,000 235,000 235,000 -
Interest 255,825 255,825 255,825 -
Total expenditures 490,825 490,825 490,825 -
Excess (deficiency) of revenues over expenditures (490,825) (490,825) (490,825) -
Other financing sources (uses)
Designated cash (budgeted increase in cash)- - - -
Transfers in 490,825 490,825 490,825 -
Transfers out - - - -
Total other financing sources (uses)490,825 490,825 490,825 -
Net change in fund balance - - - -
Fund balance - beginning of year - - 230 230
Fund balance - end of year -$ -$ 230$ 230$
The accompanying notes are an integral part of these financial statements
Budgeted Amounts
Town of Taos
2008 Gross Receipts Tax Revenue Bond Retirement Debt Service Fund
Statement of Revenues, Expenditures and Changes in Fund Balance
Budget (GAAP Basis) and Actual
For the Year Ended June 30, 2010
95
STATE OF NEW MEXICO Statement B-15
Variances
Actual
Favorable
(Unfavorable)
Original Final (GAAP Basis)Final to Actual
Revenues
Taxes
Property taxes -$ -$ -$ -$
Gross receipts - - - -
Gasoline and motor vehicle - - - -
Other - - - -
Intergovernmental income
Federal operating grants - - - -
Federal capital grants - - - -
State operating grants - - - -
State capital grants - - - -
Charges for services - - - -
Licenses and fees - - - -
Interest income - - - -
Miscellaneous - - - -
Total revenues - - - -
Expenditures
Current
General government 750 750 500 250
Public safety - - - -
Public works - - - -
Culture and recreation - - - -
Health and welfare - - - -
Capital outlay - - - -
Debt service
Principal 165,000 165,000 165,000 -
Interest 32,743 32,743 28,947 3,796
Total expenditures 198,493 198,493 194,447 4,046
Excess (deficiency) of revenues over expenditures (198,493) (198,493) (194,447) 4,046
Other financing sources (uses)
Designated cash (budgeted increase in cash)21,739 (52,352) - 52,352
Transfers in 176,754 250,845 237,259 (13,586)
Transfers out - - - -
Total other financing sources (uses)198,493 198,493 237,259 38,766
Net change in fund balance - - 42,812 42,812
Fund balance - beginning of year - - 26,614 26,614
Fund balance - end of year -$ -$ 69,426$ 69,426$
The accompanying notes are an integral part of these financial statements
Budgeted Amounts
Town of Taos
1999 Gasoline Tax Revenue Bond Retirement Debt Service Fund
Statement of Revenues, Expenditures and Changes in Fund Balance
Budget (GAAP Basis) and Actual
For the Year Ended June 30, 2010
96
STATE OF NEW MEXICO Statement B-16
Variances
Actual
Favorable
(Unfavorable)
Original Final (GAAP Basis)Final to Actual
Revenues
Taxes
Property taxes -$ -$ -$ -$
Gross receipts - - - -
Gasoline and motor vehicle - - - -
Other - - - -
Intergovernmental income
Federal operating grants - - - -
Federal capital grants - - - -
State operating grants - - - -
State capital grants - - - -
Charges for services - - - -
Licenses and fees - - - -
Interest income 3,840 3,840 3,374 (466)
Miscellaneous - - - -
Total revenues 3,840 3,840 3,374 (466)
Expenditures
Current
General government - - - -
Public safety - - - -
Public works - - - -
Culture and recreation - - - -
Health and welfare - - - -
Capital outlay - - - -
Debt service
Principal - - - -
Interest - - - -
Total expenditures - - - -
Excess (deficiency) of revenues over expenditures 3,840 3,840 3,374 (466)
Other financing sources (uses)
Designated cash (budgeted increase in cash)- - - -
Transfers in - - - -
Transfers out (3,840) (3,840) (3,374) 466
Total other financing sources (uses)(3,840) (3,840) (3,374) 466
Net change in fund balance - - - -
Fund balance - beginning of year - - 195,500 195,500
Fund balance - end of year -$ -$ 195,500$ 195,500$
The accompanying notes are an integral part of these financial statements
Budgeted Amounts
Town of Taos
1999 Gasoline Tax Revenue Bond Reserve Debt Service Fund
Statement of Revenues, Expenditures and Changes in Fund Balance
Budget (GAAP Basis) and Actual
For the Year Ended June 30, 2010
97
STATE OF NEW MEXICO Statement B-17
Variances
Actual
Favorable
(Unfavorable)
Original Final (GAAP Basis)Final to Actual
Revenues
Taxes
Property taxes -$ -$ -$ -$
Gross receipts - - - -
Gasoline and motor vehicle - - - -
Other - - - -
Intergovernmental income
Federal operating grants - - - -
Federal capital grants - - - -
State operating grants - - - -
State capital grants - - - -
Charges for services - - - -
Licenses and fees - - - -
Interest income - - 72 72
Miscellaneous - - - -
Total revenues - - 72 72
Expenditures
Current
General government 1,945 1,945 1,978 (33)
Public safety - - - -
Public works - - - -
Culture and recreation - - - -
Health and welfare - - - -
Capital outlay - - - -
Debt service
Principal 89,721 89,721 89,293 428
Interest 22,048 22,048 22,436 (388)
Total expenditures 113,714 113,714 113,707 7
Excess (deficiency) of revenues over expenditures (113,714) (113,714) (113,635) 79
Other financing sources (uses)
Designated cash (budgeted increase in cash)3,214 3,214 - (3,214)
Transfers in 110,500 110,500 110,838 338
Transfers out - - (337) (337)
Total other financing sources (uses)113,714 113,714 110,501 (3,213)
Net change in fund balance - - (3,134) (3,134)
Fund balance - beginning of year - - 24,791 24,791
Fund balance - end of year -$ -$ 21,657$ 21,657$
Town of Taos
2007 NMFA Land Purchase Debt Service Fund
The accompanying notes are an integral part of these financial statements
Statement of Revenues, Expenditures and Changes in Fund Balance
Budget (GAAP Basis) and Actual
For the Year Ended June 30, 2010
Budgeted Amounts
98
STATE OF NEW MEXICO Statement B-18
Variances
Actual
Favorable
(Unfavorable)
Original Final (GAAP Basis)Final to Actual
Revenues
Taxes
Property taxes -$ -$ -$ -$
Gross receipts - - - -
Gasoline and motor vehicle - - - -
Other - - - -
Intergovernmental income
Federal operating grants - - - -
Federal capital grants - - - -
State operating grants - 27,000 19,620 (7,380)
State capital grants 1,011,182 1,011,182 1,000,181 (11,001)
Charges for services - - - -
Licenses and fees - - - -
Interest income - - - -
Miscellaneous - 22,350 61,349 38,999
Total revenues 1,011,182 1,060,532 1,081,150 20,618
Expenditures
Current
General government - - - -
Public safety - - - -
Public works 300,543 259,824 128,392 131,432
Culture and recreation - - - -
Health and welfare - - - -
Capital outlay 1,035,114 1,093,183 1,099,770 (6,587)
Debt service
Principal 18,000 18,000 18,000 -
Interest - - - -
Total expenditures 1,353,657 1,371,007 1,246,162 124,845
Excess (deficiency) of revenues over expenditures (342,475) (310,475) (165,012) 145,463
Other financing sources (uses)
Designated cash (budgeted increase in cash)80,871 (548,129) - 548,129
Transfers in 261,604 887,354 846,604 (40,750)
Transfers out - (28,750) (5,000) 23,750
Total other financing sources (uses)342,475 310,475 841,604 531,129
Net change in fund balance - - 676,592 676,592
Fund balance - beginning of year - - 81,665 81,665
Fund balance - end of year -$ -$ 758,257$ 758,257$
The accompanying notes are an integral part of these financial statements
Budgeted Amounts
Town of Taos
Facilities Improvements Capital Projects Fund
Statement of Revenues, Expenditures and Changes in Fund Balance
Budget (GAAP Basis) and Actual
For the Year Ended June 30, 2010
99
STATE OF NEW MEXICO Statement B-19
Variances
Actual
Favorable
(Unfavorable)
Original Final (GAAP Basis)Final to Actual
Revenues
Taxes
Property taxes -$ -$ -$ -$
Gross receipts - - - -
Gasoline and motor vehicle - - - -
Other - - - -
Intergovernmental income
Federal operating grants - - - -
Federal capital grants 1,270,941 1,350,233 852,690 (497,543)
State operating grants - - - -
State capital grants 179,669 181,781 78,692 (103,089)
Charges for services - - - -
Licenses and fees - - - -
Interest income - - - -
Miscellaneous - - - -
Total revenues 1,450,610 1,532,014 931,382 (600,632)
Expenditures
Current
General government - - - -
Public safety - - - -
Public works 688,847 726,500 194,908 531,592
Culture and recreation - - - -
Health and welfare - - - -
Capital outlay 815,183 858,992 731,907 127,085
Debt service
Principal - - - -
Interest - - - -
Total expenditures 1,504,030 1,585,492 926,815 658,677
Excess (deficiency) of revenues over expenditures (53,420) (53,478) 4,567 58,045
Other financing sources (uses)
Designated cash (budgeted increase in cash)37,420 37,478 - (37,478)
Transfers in 16,000 16,000 16,000 -
Transfers out - - - -
Total other financing sources (uses)53,420 53,478 16,000 (37,478)
Net change in fund balance - - 20,567 20,567
Fund balance - beginning of year - - (1,877) (1,877)
Fund balance - end of year -$ -$ 18,690$ 18,690$
The accompanying notes are an integral part of these financial statements
Budgeted Amounts
Town of Taos
Airport Construction Capital Projects Fund
Statement of Revenues, Expenditures and Changes in Fund Balance
Budget (GAAP Basis) and Actual
For the Year Ended June 30, 2010
100
STATE OF NEW MEXICO Statement B-20
Variances
Actual
Favorable
(Unfavorable)
Original Final (GAAP Basis)Final to Actual
Revenues
Taxes
Property taxes -$ -$ -$ -$
Gross receipts - - - -
Gasoline and motor vehicle - - - -
Other - - - -
Intergovernmental income
Federal operating grants - - - -
Federal capital grants - - - -
State operating grants - - - -
State capital grants - - - -
Charges for services - - - -
Licenses and fees - - - -
Interest income - - - -
Miscellaneous - - - -
Total revenues - - - -
Expenditures
Current
General government - - - -
Public safety - - - -
Public works - - - -
Culture and recreation - - - -
Health and welfare - - - -
Capital outlay - - - -
Debt service
Principal - - - -
Interest - - - -
Total expenditures - - - -
Excess (deficiency) of revenues over expenditures - - - -
Other financing sources (uses)
Designated cash (budgeted increase in cash)- - - -
Transfers in - - - -
Transfers out - - - -
Total other financing sources (uses)- - - -
Net change in fund balance - - - -
Fund balance - beginning of year - - 25,309 25,309
Fund balance - end of year -$ -$ 25,309$ 25,309$
The accompanying notes are an integral part of these financial statements
Budgeted Amounts
Town of Taos
Enhanced 911 Capital Projects Fund
Statement of Revenues, Expenditures and Changes in Fund Balance
Budget (GAAP Basis) and Actual
For the Year Ended June 30, 2010
101
STATE OF NEW MEXICO Statement B-21
Variances
Actual
Favorable
(Unfavorable)
Original Final (GAAP Basis)Final to Actual
Revenues
Taxes
Property taxes -$ -$ -$ -$
Gross receipts - - - -
Gasoline and motor vehicle - - - -
Other - - - -
Intergovernmental income
Federal operating grants - - - -
Federal capital grants 30,153 30,153 30,149 -
State operating grants - - - -
State capital grants 31,792 31,792 30,353 -
Charges for services - - - -
Licenses and fees - - - -
Interest income - - - -
Miscellaneous - - - -
Total revenues 61,945 61,945 60,502 -
Expenditures
Current
General government - 4,624 6,183 (1,559)
Public safety - - - -
Public works - - - -
Culture and recreation - - - -
Health and welfare - - - -
Capital outlay 169,945 165,321 149,384 15,937
Debt service
Principal - - - -
Interest - - - -
Total expenditures 169,945 169,945 155,567 14,378
Excess (deficiency) of revenues over expenditures (108,000) (108,000) (95,065) 14,378
Other financing sources (uses)
Designated cash (budgeted increase in cash)108,000 108,000 - (108,000)
Transfers in - - - -
Transfers out - - - -
Total other financing sources (uses)108,000 108,000 - (108,000)
Net change in fund balance - - (95,065) (93,622)
Fund balance - beginning of year - - 203,028 203,028
Fund balance - end of year -$ -$ 107,963$ 109,406$
The accompanying notes are an integral part of these financial statements
Budgeted Amounts
Town of Taos
Vehicle Replacement Capital Projects Fund
Statement of Revenues, Expenditures and Changes in Fund Balance
Budget (GAAP Basis) and Actual
For the Year Ended June 30, 2010
102
STATE OF NEW MEXICO Statement B-22
Variances
Actual
Favorable
(Unfavorable)
Original Final (GAAP Basis)Final to Actual
Revenues
Taxes
Property taxes -$ -$ -$ -$
Gross receipts - - - -
Gasoline and motor vehicle - - - -
Other - - - -
Intergovernmental income
Federal operating grants - - - -
Federal capital grants - - - -
State operating grants - - - -
State capital grants 15,000 15,000 - (15,000)
Charges for services - - - -
Licenses and fees - - - -
Interest income 12,258 12,258 1,209 (11,049)
Miscellaneous - - 4,000 4,000
Total revenues 27,258 27,258 5,209 (22,049)
Expenditures
Current
General government - - - -
Public safety - - - -
Public works 216,240 222,740 122,332 100,408
Culture and recreation - - - -
Health and welfare - - - -
Capital outlay 129,109 129,109 - 129,109
Debt service
Principal - - - -
Interest - - - -
Total expenditures 345,349 351,849 122,332 229,517
Excess (deficiency) of revenues over expenditures (318,091) (324,591) (117,123) 207,468
Other financing sources (uses)
Designated cash (budgeted increase in cash)318,091 324,591 - (324,591)
Transfers in - - - -
Transfers out - - - -
Total other financing sources (uses)318,091 324,591 - (324,591)
Net change in fund balance - - (117,123) (117,123)
Fund balance - beginning of year - - 773,445 773,445
Fund balance - end of year -$ -$ 656,322$ 656,322$
The accompanying notes are an integral part of these financial statements
Budgeted Amounts
Town of Taos
1994 Gross Receipts Tax Revenue Bond Acquisition Capital Projects Fund
Statement of Revenues, Expenditures and Changes in Fund Balance
Budget (GAAP Basis) and Actual
For the Year Ended June 30, 2010
103
STATE OF NEW MEXICO Statement B-23
Variances
Actual
Favorable
(Unfavorable)
Original Final (GAAP Basis)Final to Actual
Revenues
Taxes
Property taxes -$ -$ -$ -$
Gross receipts - - - -
Gasoline and motor vehicle - - - -
Other - - - -
Intergovernmental income
Federal operating grants - - - -
Federal capital grants - - - -
State operating grants - - - -
State capital grants 2,041,959 2,041,959 547,354 -
Charges for services - 7,000 7,500 500
Licenses and fees - - - -
Interest income - - 509 509
Miscellaneous 5,887 5,887 - (5,887)
Total revenues 2,047,846 2,054,846 555,363 (4,878)
Expenditures
Current
General government - - - -
Public safety - - - -
Public works - - - -
Culture and recreation - - - -
Health and welfare - - - -
Capital outlay 2,711,522 2,694,087 975,649 1,718,438
Debt service
Principal - - - -
Interest - - - -
Total expenditures 2,711,522 2,694,087 975,649 1,718,438
Excess (deficiency) of revenues over expenditures (663,676) (639,241) (420,286) 1,713,560
Other financing sources (uses)
Designated cash (budgeted increase in cash)628,676 628,676 - (628,676)
Transfers in 35,000 35,000 35,000 -
Transfers out - (24,435) (38,051) (13,616)
Total other financing sources (uses)663,676 639,241 (3,051) (642,292)
Net change in fund balance - - (423,337) 1,071,268
Fund balance - beginning of year - - 632,215 632,215
Fund balance - end of year -$ -$ 208,878$ 1,703,483$
The accompanying notes are an integral part of these financial statements
Town of Taos
1999 Gasoline Tax Acquisition Capital Projects Fund
Statement of Revenues, Expenditures and Changes in Fund Balance
Budget (GAAP Basis) and Actual
For the Year Ended June 30, 2010
Budgeted Amounts
104
STATE OF NEW MEXICO Statement B-24
Variances
Actual
Favorable
(Unfavorable)
Original Final (GAAP Basis)Final to Actual
Revenues
Taxes
Property taxes -$ -$ -$ -$
Gross receipts 716,024 683,828 753,987 70,159
Gasoline and motor vehicle - - - -
Other - - - -
Intergovernmental income
Federal operating grants - - - -
Federal capital grants 507,500 507,500 412,737 (94,763)
State operating grants - - - -
State capital grants 933,531 941,531 308,550 (632,981)
Charges for services - - - -
Licenses and fees - - - -
Interest income - - 2,570 2,570
Miscellaneous - - - -
Total revenues 2,157,055 2,132,859 1,477,844 (655,015)
Expenditures
Current
General government - - - -
Public safety - - - -
Public works 119,297 168,137 43,712 124,425
Culture and recreation - - - -
Health and welfare - - - -
Capital outlay 5,688,674 4,952,015 2,265,860 2,686,155
Debt service
Principal - - - -
Interest - - - -
Total expenditures 5,807,971 5,120,152 2,309,572 2,810,580
Excess (deficiency) of revenues over expenditures (3,650,916) (2,987,293) (831,728) 2,155,565
Other financing sources (uses)
Designated cash (budgeted increase in cash)2,154,647 1,910,788 - (1,910,788)
Transfers in 182,373 211,123 164,457 (46,666)
Transfers out (686,104) (1,134,618) (1,090,748) 43,870
Proceeds from issuance of bonds 2,000,000 2,000,000 2,213,469 213,469
Total other financing sources (uses)3,650,916 2,987,293 1,287,178 (1,913,584)
Net change in fund balance - - 455,450 241,981
Fund balance - beginning of year - - 2,146,858 2,146,858
Fund balance - end of year -$ -$ 2,602,308$ 2,388,839$
The accompanying notes are an integral part of these financial statements
Budgeted Amounts
Town of Taos
Capital Projects Fund
Statement of Revenues, Expenditures and Changes in Fund Balance
Budget (GAAP Basis) and Actual
For the Year Ended June 30, 2010
105
STATE OF NEW MEXICO Statement B-25
Budget (Non-GAAP Budgetary Basis) and Actual
Variances
Budget Amounts Favorable
Original Final Actual (Unfavorable)
Operating revenues:
Charges for services 2,202,388$ 2,202,388$ 2,094,498$ (107,890)$
Total operating revenues 2,202,388 2,202,388 2,094,498 (107,890)
Operating expenses:
Personnel services 679,145 669,140 658,611 10,529
Contractual services 1,052,637 1,160,668 1,209,435 (48,767)
Supplies 80,770 88,513 86,049 2,464
Maintenance and materials 102,900 101,466 85,961 15,505
Utilities 335,550 326,534 296,395 30,139
Equipment 5,722,325 11,658,711 (1) 11,658,712
Depreciation - - 1,027,085 (1,027,085)
Miscellaneous 543,291 171,259 40,774 130,485
Total operating expenses 8,516,618 14,176,291 3,404,309 10,771,982
Operating income (loss) (6,314,230) (11,973,903) (1,309,811) 10,664,092
Non-operating revenues (expenses):
Gross receipts taxes 477,349 477,349 544,611 67,262
Interest expense (168,283) (167,911) (148,259) 19,652
Interest income 64,020 64,020 25,336 (38,684)
Government contributions 4,457,700 8,947,941 1,283,005 (7,664,936)
Miscellaneous income 730,000 1,734,189 4,311 (1,729,878)
Total non-operating revenues
(expenses)5,560,786 11,055,588 1,709,004 (9,346,584)
Transfers - 33,350 76,930 43,580
Change in net assets (753,444)$ (884,965)$ 476,123 1,361,088$
Total net assets, beginning of year 16,713,956
Total net assets, end of year 17,190,079$
The accompanying notes are an integral part of these financial statements
For the Year Ended June 30, 2010
Town of Taos
Statement of Revenues, Expenses and Changes in Net Assets
Water and Sewer Fund
106
STATE OF NEW MEXICO Statement B-26
Budget (Non-GAAP Budgetary Basis) and Actual
Variances
Budget Amounts Favorable
Original Final Actual (Unfavorable)
Operating revenues:
Charges for services 1,176,407$ 1,176,407$ 1,179,800$ 3,393$
Total operating revenues 1,176,407 1,176,407 1,179,800 3,393
Operating expenses:
Personnel services 134,399 89,406 85,887 3,519
Contractual services 729,950 793,383 793,380 3
Supplies 6,090 7,690 7,691 (1)
Maintenance and materials 26,800 23,290 23,288 2
Utilities 291,770 243,684 243,367 317
Equipment 8,000 248,000 - 248,000
Depreciation - - 2,647 (2,647)
Miscellaneous 1,600 176 179 (3)
Total operating expenses 1,198,609 1,405,629 1,156,439 249,190
Operating income (loss) (22,202) (229,222) 23,361 252,583
Non-operating revenues (expenses):
Gross receipts taxes - - - -
Interest expense - - - -
Interest income - - - -
Government contributions - - - -
Miscellaneous income 15,286 15,286 24,765 9,479
Total non-operating revenues
(expenses)15,286 15,286 24,765 9,479
Transfers - - - -
Change in net assets (6,916)$ (213,936)$ 48,126 262,062$
Total net assets, beginning of year 1,064,427
Total net assets, end of year 1,112,553$
The accompanying notes are an integral part of these financial statements
For the Year Ended June 30, 2010
Town of Taos
Statement of Revenues, Expenses and Changes in Net Assets
Solid Waste Fund
107
STATE OF NEW MEXICO Statement B-27
Budget (Non-GAAP Budgetary Basis) and Actual
Variances
Budget Amounts Favorable
Original Final Actual (Unfavorable)
Operating revenues:
Charges for services 1,651,943$ 1,226,524$ 1,029,633$ (196,891)$
Total operating revenues 1,651,943 1,226,524 1,029,633 (196,891)
Operating expenses:
Personnel services 350,557 347,894 325,291 22,603
Contractual services 336,344 305,314 388,390 (83,076)
Supplies 12,100 7,537 6,593 944
Maintenance and materials 118,921 138,687 136,437 2,250
Utilities 8,123 8,123 6,710 1,413
Equipment 766,647 766,647 - 766,647
Depreciation - - 150,221 (150,221)
Miscellaneous 168,272 163,716 3,291 160,425
Total operating expenses 1,760,964 1,737,918 1,016,933 720,985
Operating income (loss) (109,021) (511,394) 12,700 524,094
Non-operating revenues (expenses):
Gross receipts taxes - - - -
Interest expense (32,413) (33,969) (33,334) 635
Interest income 5,000 5,000 4,038 (962)
Government contributions 366,073 366,073 - (366,073)
Miscellaneous income - - 91,192 91,192
Total non-operating revenues
(expenses)338,660 337,104 61,896 (275,208)
Transfers - 150,000 - (150,000)
Change in net assets 229,639$ (24,290)$ 74,596 98,886$
Total net assets, beginning of year 3,159,685
Total net assets, end of year 3,234,281$
The accompanying notes are an integral part of these financial statements
For the Year Ended June 30, 2010
Town of Taos
Statement of Revenues, Expenses and Changes in Net Assets
Taos Regional Landfill Fund
108
SUPPORTING SCHEDULES
109
STATE OF NEW MEXICO Schedule I
Town of Taos
Schedule of Deposit and Investment Accounts
For the Year Ended June 30, 2010
Account Bank Deposits Outstanding Book
Bank Name/Account Name Type Balance in Transit Checks Balance
First Community Bank
Clearing Account Checking 350,817$ 376,540$ 727,230$ 127$
Judicial Bond Fund Municipal Court Checking 2,499 - 827 1,672
Utility Construction Fund Checking 39,530 - - 39,530
Water & Sewer System Income Fund Checking 3,221,824 55,104 51,454 3,225,474
Certificate of Deposit - Investment CD 170,500 - - 170,500
Certificate of Deposit - Investment CD 195,500 - - 195,500
Total First Community Bank 3,980,670 431,644 779,511 3,632,803
Centinel Bank
General Fund Checking 1,322,147 105,329 326,363 1,101,113
Water/Wastewater Improvement Fund Checking 129,859 - 67,364 62,495
Payroll Clearing Checking 11 - - 11
1994 GRT Revenue Bond Acquisition Fund Checking 27,853 - 19,500 8,353
HUD Account - Domestic Violence Shelter Checking 11,215 - 11,213 2
ACH Transfer Account Checking 48,725 - 48,626 99
Total Centinel Bank 1,539,810 105,329 473,066 1,172,073
Bank of Albuquerque - Investments
2001A Water & Sewer Revenue Bond
Retirement
U.S. Treasury Mutual
Fund 61,837 - - 61,837
2004 Taos Regional Landfill Revenue Bond
Reserve
U.S. Treasury Mutual
Fund 137,509 - - 137,509
2008A Taos Regional Landfill Debt Service
U.S. Treasury Mutual
Fund 100,175 - - 100,175
2004 Taos Regional Landfill Acquisition
U.S. Treasury Mutual
Fund 142,052 - - 142,052
Total Bank of Albuquerque 441,573 - - 441,573
New Mexico Finance Authority - Investments
2007 NMFA Land Purchase
State Treasurer Debt
Service 21,451 - - 21,451
2001A Water & Sewer Revenue Bond
Retirement
State Treasurer Debt
Service 11,925 - - 11,925
2004 Taos Regional Landfill Revenue Bond
Reserve
State Treasurer Debt
Service 20,599 - - 20,599
2008A Taos Regional Landfill Debt Service
State Treasurer Debt
Service 21,020 - - 21,020
2010 Phase II Wastewater Treatment Plant
Rehab
State Treasurer Debt
Service 557,483 - - 557,483
2010 Phase I Multi-phased Rec. Park
State Treasurer Debt
Service 1,957,972 - - 1,957,972
Total New Mexico Finance Authority 2,590,450 - - 2,590,450
Total 8,552,503$536,973$ 1,252,577$7,836,899
New Mexico State Treasurer Local Government Investment Pool 4,790,089
Add: petty cash 1,500
Total deposits and investments 12,628,488$
Deposits and investments per financial statements:
Cash and cash equivalents - Exhibit A-1 4,250,420$
Investments - Exhibit A-1 5,093,589
Restricted cash and cash equivalents - Exhibit A-1 3,216,485
Fiduciary funds cash and cash equivalents and investments - Exhibit E-1 67,994
Total deposits and investments 12,628,488$
See accompanying independent auditors' report
110
STATE OF NEW MEXICO Schedule II
Description of Type of Fair Market
Name of Pledged Pledged CUSIP Value at Location
Depository Collateral Collateral Maturity Number June 30, 2010 of Safekeeper
First Community Bank
GNR2009-84 Loan 10/15/2020 38374XD77 241,630$ Federal Home Loan Bank, Dallas, TX
See accompanying independent auditors' report
June 30, 2010
Town of Taos
Schedule of Collateral Pledged by Depository for Public Funds
111
(This page intentionally left blank)
112
STATE OF NEW MEXICO Schedule III
Balance Balance
June 30, 2009 Additions Deletions June 30, 2010
Assets
Cash 863$ $ 28,114 $ 23,483 5,494$
Investments 68,500 - 6,000 62,500
Total assets 69,363$ 28,114$ 29,483$ 67,994$
Liabilities
Deposits payable 68,260$ 7,780$ 9,310$ 66,730$
Due to other entities 1,103 14,334 14,173 1,264
Total liabilities 69,363$ 22,114$ 23,483$ 67,994$
Town of Taos
Schedule of Changes in Fiduciary Assets and Liabilities - Agency Funds
For the Year Ended June 30, 2010
See accompanying independent auditors' report
113
Agreement
The Town
Participates with
Party Responsible for
Operation Description
Salazar Property and
Sports Facilities
Taos Municipal
Schools Board of
Education
Taos Municipal
School District
Develop, manage and maintain a multi-purpose athletic
facility on the Salazar Property
Public Restroom Facility County of Taos County of Taos Designing, constructing, operating, and maintaining a
public restroom facility
Enhanced 911-Response
System
County of Taos,
Town of Questa,
Village of Taos Ski
Valley
Town of Taos Provide an answering point for information regarding
needed emergency services
Taos Regional Landfill
Board
County of Taos,
Village of Questa,
Village of Red River,
Village of Taos Ski
Valley
Town of Taos Establish the Taos Regional Landfill Board
See accompanying independent auditors' report
June 30, 2010
STATE OF NEW MEXICO
Town of Taos
Schedule of Joint Powers Agreements
114
Schedule IV
Period Cost to Town
Town
Contributions Audit Responsibility
40 Years from 2009, with option to
renew
$2,140,012 for
Phase I; unknown
for other phases
None to date Taos Municipal School
District
November 20, 2007 to January 31,
2028
Indeterminate Indeterminate County of Taos
July 6, 1998 until terminated Estimated $219,494
per year
$243,694 Town of Taos
50 years from November 2, 2000 Dependent on
landfill expenses
$900,867
during 2009
Town of Taos
115
(This page intentionally left blank)
116
COMPLIANCE SECTION
117
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
Hector Balderas
New Mexico State Auditor
The Un ited States Office of Management and Budget and
The Town Council
Town of Taos
Taos, New Mexico
We have audited the financial statements of the governmental activities, the business-type activities, each major fund, the
budgetary comparison for the General Fund and the aggregate remaining fund information of the Town of Taos (“the Town”), New
Mexico, as of and for the year ended June 30, 2010, which collectively comprise the Town’s basic financial statements as listed in
the table of contents, and have issued our report thereon dated November 22, 2010. We also have audited the financial statements
of each of the Town’s nonmajor governmental funds and budgetary comparisons for the proprietary funds, Capital Pr ojects Fund,
and the remaining nonmajor governmental funds pr esented as supplementary information in the accompanying combining and
individual fund financial statements as of and for the year ended June 30, 2010 as listed in the table of contents. 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 Un ited States.
Internal Control Over Financial Reporting
In planning and performing our audit, we considered the Town’s internal control over financial reporting as a basis for designing
our auditing pr ocedures 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 over financial reporting. Accordingly, we do not express
an opinion on the effectiveness of the Town’s internal control over financial reporting.
Our consideration of internal control over financial reporting was for the limited purpose described in the preceding paragraph and
was not designed to identify all deficiencies in internal control over financial reporting that might be significant deficiencies or
material weaknesses and therefore, there can be no assurance that all deficiencies, significant deficiencies, or material weaknesses
have been identified. However, as described in the accompanying schedule of findings and questioned costs, we identified certain
deficiencies in internal control over financial reporting that we consider to be material weaknesses.
A deficiency in internal control exists wh en 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
we akness is a deficiency, or combination of deficiencies, in internal control such that there is a reasonable possibility that a material
misstatement of the entity’s financial statements will not be prevented, or detected and corrected on a timely basis. We consider
the deficiencies described in the accompanying schedule of findings and questioned costs as items FS 2007-01, FS 2009-03, and FS
2010-01, to be material weaknesses.
118
Compliance and Other Matters
As part of obtaining reasonable assurance about wh ether the Town’s financial statements are free of material misstatement, we
performed tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements, noncompliance with
wh ich 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.
The Town’s responses to the findings identified in our audit are described in the accompanying schedule of findings and questioned
costs. We did not audit the Town’s responses and, accordingly, we express no opinion on them.
This report is intended solely for the information and use of the audit committee management, others within the organization, Town
Commission, the Office of the State Auditor, New Mexico Legislature, the New Mexico Department of Finance and
Administration, federal awarding agencies and pass-through entities and is not intended to be and sh ould not be used by anyone
other than these specified parties.
Accounting & Consulting Group, LLP
Albuquerque, New Mexico
November 22, 2010
119
(This page intentionally left blank)
120
FEDERAL FINANCIAL ASSISTANCE
121
REPORT ON COMPLIANCE WITH REQUIREMENTS
THAT COULD HAVE A DIRECT AND MATERIAL EFFECT ON EACH MAJOR PROGRAM AND ON
INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A-133
Hector Balderas
New Mexico State Auditor
The Un ited States Office of Management and Budget and
The Town Council
Town of Taos
Taos, New Mexico
Compliance
We have audited the compliance of Town of Taos, New Mexico (“the Town”)with the types of compliance requirements
described in the U.S. Office of Management and Budget (OMB) Circular A-133 Compliance Supplement that could have a
direct and material effect on each of the Town’s major federal programs for the year ended June 30, 2010. The Town’s major
federal pr ogr ams are identified in the summary of auditors’ results section of the accompanying schedule of findings and
questioned costs. Compliance with the requirements of laws, regulations, contracts and grants applicable to each of its major
federal programs is the responsibility of the Town’s management. Our responsibility is to express an opinion on the Town ’s
compliance based on our audit.
We conducted our audit of compliance in accordance with auditing standards generally accepted in the Un ited States of
America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller
General of the United States; and OMB Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations.
Those standards and OMB Circular A-133 require that we plan and perform the audit to obtain reasonable assurance about
wh ether noncompliance with the types of compliance requirements referred to above that could have a direct and material
effect on a major federal pr ogram occurred. An audit includes examining, on a test basis, evidence about the Town’s
compliance with those requirements and performing such other procedures as we considered necessary in the circumstances.
We believe that our audit provides a reasonable basis for our opinion. Our audit does not provide a legal determination of the
Town’s compliance with those requirements.
In our opinion, the Town complied, in all material respects, with the compliance requirements referred to above that could
have a direct and material effect on each of its major federal pr ograms for the year ended June 30, 2010. However, the
results of our auditing pr ocedures disclosed instances of noncompliance with those requirements, wh ich are required to be
reported in accordance with OMB Circular A-133 and which are described in the accompanying schedule of findings and
questioned costs as items FA 2009-01 and FA 2010-01.
Internal Control Over Compliance
The management of the Town is responsible for establishing and maintaining effective internal control over compliance with
the requirements of laws, regulations, contracts and grants applicable to federal pr ogr ams. In planning and performing our
audit, we considered the Town’s internal control over compliance with the requirements that could have a direct and material
effect on a major federal pr ogram to determine our auditing pr ocedures for the purpose of expressing our opinion on
compliance, and to test and report on internal control over compliance in accordance with OMB Circular A-133, but not for
the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accor dingly, we do not
express an opinion on the effectiveness of the Town’s internal control over compliance.
122
A deficiency in internal control over compliance exists wh en the design or operation of a control over compliance does not
allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and
correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness
in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such
that there is a reasonable possibility that material noncompliance with type of compliance requirement of a federal pr ogram
will not be prevented, or detected and corrected, on timely basis.
Our consideration of internal control over compliance was for the limited purpose described in the first paragraph of this
section and was not designed to identify all deficiencies in internal control over compliance that might be deficiencies,
significant deficiencies, or material weaknesses. We did not indentify any deficiencies in internal control over compliance
that we consider to be material weaknesses, as defined above. However, we identified certain deficiencies in internal control
over compliance that we consider to be significant deficiencies as described in the accompanying schedule of findings and
questioned costs as items FA 2009-01 and FA 2010-01. A significant deficiency in internal control over compliance is a
deficiency, or a combination of deficiency, in internal control over compliance with a type of compliance requirement that is
less severe than a material weakness, yet important enough to merit attention by those charged with governance.
The Town’s responses to the findings identified in our audit are described in the accompanying schedule of findings and
questioned costs. We did not audit the Town’s responses and, accordingly, we express no opinion on the responses.
This report is intended solely for the infor mation and use of management, others within the Town, the audit committee, the
State Auditor, the Town Council, the New Mexico Legislature, the New Mexico Department of Finance and Administration,
and applicable federal grantors, and is not intended to be and should not be used by anyone other than these parties.
Accounting & Consulting Group, LLP
Albuquerque, NM
November 22, 2010
123
STATE OF NEW MEXICO Schedule V
Town of Taos (Page 1 of 2)
Schedule of Expenditures of Federal Awards
For the Year Ended June 30, 2010
CFDA
Number Expenditures
16.580 $ 66,101
Recovery Act Jag Program- ARRA 16.804 2009-SB-B9-0068 30,353
Total U.S. Department of Justice 96,454
14.235 150,451
14.228 07-C-NR-I-06-G-56 430,000
Total U.S. Department of Housing & Urban Development 580,451
Federal Aviation Administration (FAA)
20.106 295,831
Airport Improvements Program - Equipment (1)20.106 179,778
Airport Improvements Program - EIS (1)20.106 375,015
Federal Transportation Administration (FTA) Federal Assistance (1)20.500 32,750
Federal Transportation Administration (FTA) Federal Assistance-ARRA (1)20.507 412,625
Total U.S. Department of Transportation 1,295,999
10.766 36,324
Mexico Environment Department
66.458 CWSRF 15 1,433,573
$ 3,442,801
(1) Denotes Major Federal Financial Assistance Program
Total Federal Financial Assistance
See accompanying independent auditors' report
RUS - Police Equipment
U.S. Department of Agriculture
2005-DD-BX-1109
U.S. Department of Housing & Urban Development Passed Through the
Airport Improvements Program - PAPI (1)
Enforcement Assistance
Funding Source/Grant or Contact Name
Federal Grantors
Number
U.S. Department of Justice
3-35-0041-016-2006
U.S. Department of Transportation
U.S. Environmental Protection Agency Passed Through the State of New
EPA- Clean Water State Revolving Fund- ARRA (1)
State of New Mexico, Department of Finance & Administration
3-35-0041-019-2008
3-35-0041-017-2007
NM-03-0041
Community Development Block Grant - Sustainable Building Ordinance (1)
Community Against Violence NM02B601005
124
STATE OF NEW MEXICO Schedule V
Town of Taos (Page 2 of 2)
Schedule of Expenditures of Federal Awards
For the Year Ended June 30, 2010
Notes to Schedule of Expenditures of Federal Awards
Reconciliation of Schedule of Expenditures of Federal Awards to Financial Statements:
3,442,801$
21,642,367
25,085,168$
1. Basis of Presentation
Total expenditures
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 governmental fund
financial statements,except for the proprietary funds.The information in this Schedule is presented in accordance with the
requirements of OMB Circular A-133, Audits of States, Local Governments and Non-Profit Organizations .
The Town did not provide any federal awards to subrecipients during the year.
Total expenditures funded by other sources
2. Subrecipients
Total federal awards expended per Schedule of Expenditures of Federal Awards
125
STATE OF NEW MEXICO Schedule VI
Town of Taos Page 1 of 6
Schedule of Findings and Questioned Costs
For the Year Ended June 30, 2010
Section I – Summary of Audit Results
Financial Statements:
1.Type of auditors’ report issued Un qualified
2.Internal control over financial reporting:
a.Material weaknesses identified?Yes
b.Significant deficiencies identified not considered to be material weaknesses?No
c.Noncompliance material to the financial statements noted?No
Federal Awards:
1.Internal control over major programs:
a.Material weaknesses identified?No
b.Significant deficiencies identified not considered to be material weaknesses?Yes
2.Type of auditors’ report issued on compliance for major programs Un qualified
3.Any audit findings disclosed that are required to be reported in accordance with
Section 510(a) of Circular A-133?Yes
4.Identification of major programs:
CFDA
Number Federal Program
14.228 Community Development Block Grant
20.106 Airport Improvements Program
20.500 and 20.507 FTA- Federal Assistance Program
66.458 EPA- Clean Water State Revolving Fund
5.Dollar threshold used to distinguish between type A and type B programs:$300,000
6.Auditee qualified as a low-risk auditee under the requirements set forth by
OMB Circular A-133 section 530?No
126
STATE OF NEW MEXICO Schedule VI
Town of Taos Page 2 of 6
Schedule of Findings and Questioned Costs
For the Year Ended June 30, 2010
Section II –Prior Year Audit Findings
Prior Year Audit Findings
Financial Statement Findings Disposition
2007-01 Bank Reconciliations Repeated and Revised
2009-01 Stale Dated Checks Resolved
2009-02 Travel and Per Diem Resolved
2009-03 Preparation of Financial Statements Repeated
2009-04 Expenditures in Excess of Budget Resolved
2009-05 Gross Pay is not Correct Resolved
2009-06 Salary/Fringe Benefits Not Appropriately Authorized Resolved
2009-07 Lodger’s Tax Resolved
Federal Awards Findings
2009-01 Davis-Bacon Repeated
Section III – Financial Statement Findings and Questioned Costs
FS 2007-01 Bank Reconciliations and Recording of Cash
Condition: The Town did not pr epare a bank reconciliation for the ACH transfer account or the payroll clearing
account. In addition, the Town did not record $2,590,450 of restricted cash fr om New Mexico Finance Authority
statements on the Town’s general ledger.
Criteria: NMSA 6-10-2 discusses the duty of public officials to balance public money at the close of each business
day. Good accounting practices also require that bank reconciliations are prepared and reviewed at least monthly.
Effect: Before the adjustments were made, the Town’s cash per the trial balance was understated by $2,541,824.
Cause: The Town was unaware of the need to reconcile all bank accounts even when there is no activity. Also, the
Town did not record cash in NMFA statements.
Auditors’ Recommendation: We recommend that the Town prepare monthly bank reconciliations for the accounts
mentioned above and that the bank reconciliations are reviewed for accuracy by Management.
Agency’s Response: The Town’s Finance Department has started and will continue to prepare manual bank
reconciliations. The Finance Department will work with the software company to upgrade the system to allow these
accounts to be entered into the Town’s general ledger and ensure that the pr eparation occurs monthly and reviewed
by Management for accuracy.
127
STATE OF NEW MEXICO Schedule VI
Town of Taos Page 3 of 6
Schedule of Findings and Questioned Costs
For the Year Ended June 30, 2010
FS 2009-03 Preparation of Financial Statements
Condition: The Town does not have adequate internal controls in place to prepare its financial statements and related
disclosures.
Criteria: According to the American Institute of Certified Public Accountants’ Statement on Auditing Standards No.
112, a system of internal control over financial reporting does not stop at the general ledger. Well designed systems
include controls over financial statement preparation, including footnote disclosures.
Effect: Wh en sufficient controls over the preparation of financial statements and related disclosures are not designed,
implemented and operating effectively, an entity’s ability to prevent, detect, and correct misstatements in its financial
statements is limited.
Cause: The Town’s personnel did not have the time and have not been adequately trained in understanding the
elements of external financial reporting, including the preparation of financial statements and related footnote
disclosures.
Auditors’ Recommendation: We recommend Town management and personnel receive training on understanding the
requirements of external financial reporting.
The training should include, but not be limited to:
Selection of appropriate accounting policies:
Governmental Accounting Standards Board (GASB)
Generally Accepted Accounting Pr inciples (specifically as applied to
governmental units)
Financial Accounting Standards Board (FASB)
Un derstanding the financial reporting entity
Government-wide financial statements
Fund financial statements
Notes to the financial statements
Required supplementary information
Management’s discussion and analysis
Supplementary information required by the Office of the State Auditor
In addition, we recommend that the Town develop and implement policies and pr ocedures designed to pr event or
detect possible misstatements in its financial statements and related footnote disclosures.
Agency’s Response:The Town has started implementing a plan of action detailing the training for staff, wh ich has
included the pr eparation of the MD&A for the first time, participating and planning the New Mexico Government
Finance Officers Association’s annual conference with topics associated to financial statements and internal controls,
adopting tools, policies and pr ocedures to detect possible misstatements in its financial statements and related foot
note disclosures.
128
STATE OF NEW MEXICO Schedule VI
Town of Taos Page 4 of 6
Schedule of Findings and Questioned Costs
For the Year Ended June 30, 2010
FS 2010-01 Design Deficiencies in Internal Control over Financial Reporting
Condition: The Town’s internal control structure is inadequate. The Town does not have a comprehensive
documented internal control system over financial information. The Town does not maintain pr oper oversight or
monitoring in regards to the Town ’s accounting activities and has not taken the pr oper measures to monitor and
mitigate the risk for fraud, misappropriation of assets, or misstatement of financial statements. During our audit, we
noted the following internal control deficiencies:
Periodically, capital asset listings are routed to the appropriate managers to determine wh ether the assets still
physically exist, but have limited success on the completion.
Purchase orders, (including unused forms) are not pre-numbered.
Changes to the vendor master file are not periodically reviewed for reasonableness.
The payroll syst em master file change log is not reviewed, showing all changes made to payroll information, to
ensure it reflects accurate and complete information.
A current pur chasing manual defines restrictions on pur chases of goods or services from governing bod y
members, employees, or other suppliers that would create a conflict of interest. Although this exists in the
Town ’s personnel policy, it does not have wr itten acknowledgement by employees, governing board, or
management.
Management does not have internal controls in place to ensure all debt covenants have been reviewed and the
Town is in compliance with all requirements of each debt instrument
Management has not established practices for the identification of risks affecting the entity as well as appropriate
fraud risk assessment and monitoring processes.
Management does not monitor controls over financial reporting through ongoing monitoring, independent
evaluations, and remediation of identified deficiencies.
Criteria: NMAC 6.20.2.11 states:
A.Every Town shall establish and maintain an internal control structure to pr ovide management with
reasonable assurance that assets are safe-guarded against loss from unauthorized use or disposition, that
transactions are executed in accordance with management's authorization and recorded properly to permit
the preparation of general purpose financial statements in accordance with GAAP, and that state and federal
programs are managed in compliance with applicable laws and regulations. The internal control structure
shall include wr itten administrative controls (rules, pr ocedures and practices, and policies that affect the
or ganization) and accounting controls (activity cycles, financial statement captions, accounting applications
including computer systems) that are in accordance with GAAP.
B.Each Town shall develop, establish and maintain a structure of internal accounting controls and
wr itten procedures to provide for segregation of duties, a system of authorization and recording procedures,
and sound accounting practices in performance of duties and functions. The duties to be segregated are the
authorization to execute a transaction, recording the transaction, and custody of assets involved in the
transaction.
(1) Town management must en sure that pr otection of the public trust is a major focus wh en gr anting
the authorization to execute business of the Town .
(2) Employees handling significant amounts of cash must be adequately bonded. Access to assets is
permitted only in accordance with Town authorization.
(3) Receipts, checks or warrants, purchase orders, and vouchers shall be sequentially pre-numbered.
(4) The Town shall have proper safeguards to pr otect unused checks and other pr e-numbered for ms,
undeposited cash and other receipts, and facsimile signature plates.
(5) Transactions are to be recorded as necessary to permit pr eparation of financial statements in
conformity with GAAP. In addition, the Town shall establish any other cr iteria applicable to such
statements to maintain accountability for assets.
(6) The Town shall conduct independent checks on performance and pr oper valuation of recorded
amounts, such as clerical ch ecks, reconciliations, comparison of assets with recorded accountability,
computer-pr ogr ammed controls, management review of reports that summarize the detail of account
balances, and user review of computer generated reports.
129
STATE OF NEW MEXICO Schedule VI
Town of Taos Page 5 of 6
Schedule of Findings and Questioned Costs
For the Year Ended June 30, 2010
FS 2010-01 Design Deficiencies in Internal Control over Financial Reporting (Continued)
C.An internal control structure is required to demonstrate the Town’s ability to record, pr ocess,
summarize and report financial data consistent with the following financial statement assertions:
(1) rights and ownership;
(2) existence and occurrence;
(3) valuation and allocations;
(4) completeness; and,
(5) presentation and disclosure.
D.The internal control structure shall demonstrate that the Town identifies applicable laws and
regulations, and that pr ocedures are designed to provide reasonable assurance that the Town complies with
those laws and regulations. Internal control procedures shall be established, implemented and documented
through Town correspondence, manuals, training, and other additional methods. Appropriate internal control
procedures shall be adopted by the Council within a Town to safeguard its assets, ch eck the accuracy and
reliability of its accounting data, pr omote operational effi ciency, and encourage adherence to pr escribed
managerial policies. The internal control structure shall address all Town transactions.
The SAS No. 112 Appendix lists the following circumstances as possible control deficiency, significant deficiency,
or material weakness, “inadequate documentation of the components of internal control.” SAS 112 paragraph 19
states that ineffective oversight of the agency’s financial reporting and internal control by those charged with
governance should be regarded as at least a significant deficiency and a strong indicator of a material weakness in
internal control.
Effect: Because certain internal controls have weaknesses in design, key controls are not in place to properly
safeguard assets and pr event or detect material misstatements due to errors or fraud.
Cause: The Town has not performed a for malized and documented risk assessment pr ocess for those key controls in
place to prevent and detect errors or fraud.
Auditors’ Recommendations: The Town should ensure that a comprehensive internal control structure over financial
information is designed, documented, and implemented. Management should follow and ensure that all staff follows
the Town’s documented internal control procedures. The Town Council is charged with governance and sh ould
provide effective oversight of the internal control and financial reporting process.
Agency’s Response: Management agrees with the auditors’ recommendations and will prepare a for malized and
documented internal control procedures in association with existing pr actices that are currently followed with the
Town’s accounting manual and subsequent policies and pr ocedures.
FINDINGS – FEDERAL AWARDS
FA 2009-01 –Davis-Bacon
Federal program information:
Funding agency:Community Development Block Grant
Title: CDBG
CFDA number: 14.228
Award period: July 1, 2009 to June 30, 2010
Condition: The Town did not review payroll reports submitted for prevailing wages with Davis-Bacon in accordance
with the U.S. Office of Management and Budget (OMB) Circular A-133 Compliance Supplement.
Criteria: The Town is required to submit certified payroll and use Davis-Bacon wages in accordance with U.S.
Office of Management and Budget (OMB) Circular A-133.
Effect: Non-compliance with the reporting requirement of U.S. Office of Management and Budget (OMB) Circular
A-133 may affect the Town’s federal award future funding.
130
STATE OF NEW MEXICO Schedule VI
Town of Taos Page 6 of 6
Schedule of Findings and Questioned Costs
For the Year Ended June 30, 2010
FA 2009-01 –Davis-Bacon (Continued)
Questioned Costs: None
Cause: The Town did not review the contractor submitted payroll reports for wages in compliance with Davis-
Bacon. Although the Town did review the certified payrolls at the latter part of the project to ensure compliance with
this requirement, the internal controls over compliance were absent during the beginning of the fiscal year.
Auditors’ Recommendation: The Town must ensure that they follow the Davis-Bacon Act for all future federal award
funding.
Agency’s Response: Management agrees with the auditors’ recommendation and will follow the compliance
supplements for all future federally awarded funds per the grant agreements along with the Town’s created checklist,
wh ich describes the proper steps and requirements in following the Davis-Bacon Act.
FA 2010-01 Excluded Parties List
Federal program information:
Funding agency:All major programs
Title: All major programs
CFDA number: All major programs
Award period: July 1, 2009 to June 30, 2010
Condition: During our review of procurement for all major pr ogr ams tested, it was noted that the Town does not
reference the Excluded Parties List System, for contracts of goods or services in wh ich more than $25,000 is
expended.
Criteria: The OMB A-133 Compliance Supplement Part 3-Compliance Requirements I- Procurement Suspension
and Debarment stipulates non-federal en tities are pr oh ibited from contracting with or making subawards under
covered transactions to parties that are suspended or debarred or whose principals are suspended or debarred.
“Covered Transactions” include those procurement contracts for goods and services awarded under a nonprocurement
transaction that is expected to equal or exceed $25,000 or meet other certain specified criteria.
Effect:The Town could be contracting with vendors for services or goods that are included on the suspension and
debarment listing which could potentially decrease federal funding received since this is considered non-compliance.
Questioned Costs: None
Cause: The Town was unaware the Excluded Parties List System website existed.
Auditors’ Recommendation: We recommend that the Town implement procedures to ensure all vendors for services
and goods over $25,000 be verified that they do not exist on the suspension and debarment listing.
Agency’s Response: Management agrees with the auditors’ recommendation and will follow the compliance of
supplement Part-3-Compliance Requirements I – Procurement Suspension and Debarment. The Finance Department
will also create a checklist, wh ich describes the proper steps and requirements to follow wh en federal funding is
involved to meet this compliance supplement.
131
(This page intentionally left blank)
132
STATE OF NEW MEXICO
Town of Taos
Other Disclosures
For the Year Ended June 30, 2010
OTHER DISCLOSURES
Exit Conference
An exit conference was held on November 22, 2010. In attendance were the following:
Representing the Town of Taos:
Darren Cordova Mayor
Daniel Miera Town Manager
Marietta Fambro Finance Director
Allen Ferguson Town Attorney
Representing Accounting & Consulting Group, LLP:
Robert Cordova, CPA Audit Manager
Ra y Roberts, CPA Managing Partner
Auditor Prepared Financial Statements
Although it would be preferred and desirable for the Town t o prepare its own financial statements, the Town’s personnel
did not have the time to prepare them. Accounting & Consulting Group, LLP prepared the financial statements of the
Town of Taos from the original books and records provided to them by the management of the Town. Management is
responsible for the financial statements.
133