2015 Audit Report
TOWN OF TAOS
State of New Mexico
Town of Taos
Annual Financial Report
June 30, 2015
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INTRODUCTORY SECTION
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STATE OF NEW MEXICO
Town of Taos
Table of Contents
June 30, 2015
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 Position A-1 22-23
Statement of Activities A-2 24-25
Fund Financial Statements
Balance Sheet –Governmental Funds B-1 26
Reconciliation of the Balance Sheet to the Statement of Net Position 27
Statement of Revenues, Expenditures, and
Changes in Fund Balances –Governmental Funds B-2 28
Reconciliation of the Statement of Revenues, Expenditures and
Changes in Fund Balances of Governmental Funds to the
Statement of Activities 29
Statement of Revenues, Expenditures and Changes in Fund Balance
Budget (GAAP Basis)and Actual
General Fund C-1 31
Statement of Net Position-Proprietary Funds D-1 32-33
Statement of Revenues, Expenses and
Changes in Net Position-Proprietary Funds D-2 34
Statement of Cash Flows –Proprietary Funds D-3 35
Statement of Fiduciary Assets and Liabilities –Agency Funds E-1 36
NOTES TO THE FINANCIAL STATEMENTS 37-70
REQUIRED SUPPLEMENTARY INFORMATION Schedule Page
Schedule of Proportionate Share of Net Pension Liability I 72-74
Schedule of Employer Contributions II 75-77
Notes to the Required Supplementary Information 78
SUPPLEMENTARY INFORMATION
Statement
Nonmajor Governmental Fund Descriptions 80-83
COMBINING AND INDIVIDUAL FUND STATEMENTS AND SCHEDULES
Combining Balance Sheet –Nonmajor Governmental Funds A-1 84-89
Combining Statement of Revenues, Expenditures and Changes in
Fund Balances – Nonmajor Governmental Funds A-2 90-95
Statement of Revenues, Expenditures and Changes in Fund Balance –
Budget (GAAP Basis) and Actual
Governmental Funds:
Fire Protection Special Revenue Fund B-1 96
Recreation Special Revenue Fund B-2 97
Lodger’s Tax Special Revenue Fund B-3 98
Local Government Correction Special Revenue Fund B-4 99
Law Enforcement Protection Special Revenue Fund B-5 100
Civic Center Special Revenue Fund B-6 101
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STATE OF NEW MEXICO
Town of Taos
Table of Contents
June 30, 2015
Statement/Schedule Page
Statement of Revenues, Expenditures and Changes in Fund Balance –
Budget (GAAP Basis) and Actual
Domestic Violence Shelter Special Revenue Fund B-7 102
Public Transportation Special Revenue Fund B-8 103
Community Grants Special Revenue Fund B-9 104
Municipal Road Gasoline Tax Special Revenue Fund B-10 105
¼ Cent Municipal Gross Receipts Tax Special Revenue Fund B-11 106
Historical District Special Revenue Fund B-12 107
Communications Special Revenue Fund B-13 108
Confidential Informant Special Revenue Fund B-14 109
Capital/Maintenance/Operating Special Revenue Fund B-15 110
2009 NMFA PPRF Disadvantage Program- Eco Park Debt Service Fund B-16 111
2008 Gross Receipts Tax Revenue Bond Retirement Debt Service Fund B-17 112
NMFA Debt Service Reserve Eco Park Debt Service Fund B-18 113
2007 NMFA Land Purchase Debt Service Fund B-19 114
2011 PPRF Street Improvement Debt Service Fund B-20 115
Camino Rael Building Debt Service Fund B-21 116
2011 PPRF Street Improvement Reserve Debt Service Fund B-22 117
Facilities Improvements Capital Projects Fund B-23 118
Capital Projects Capital Projects Fund B-24 119
Vehicle Replacement Capital Projects Fund B-25 120
1994 Gross Receipts Tax Revenue Bond Acquisition Capital Projects Fund B-26 121
1999 Gasoline Tax Acquisition Capital Projects Fund B-27 122
Airport Construction Capital Projects Fund B-28 123
Statement of Revenues, Expenses and Changes in Net Position –
Budget (GAAP Basis) and Actual –Proprietary Funds
Water and Sewer Fund B-29 124
Solid Waste Fund B-30 125
Taos Regional Landfill Fund B-31 126
SUPPORTING SCHEDULES
Schedule of Deposit and Investment Accounts III 128-129
Schedule of Collateral Pledged by Depository for Public Funds IV 130
Schedule of Changes in Fiduciary Assets and Liabilities - Agency Funds V 131
Schedule of Joint Powers Agreements VI 132-133
Schedule of Vendor Information for Purchases Exceeding $60,000 (excluding GRT) VII 134-137
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 140-141
FEDERAL FINANCIAL ASSISTANCE
Report on Compliance for Each Major Federal Program; Report on Internal
Control over Compliance Required by OMB Circular A-133 144-145
Schedule of Expenditures of Federal Awards VIII 146-147
Schedule of Findings and Questioned Costs IX 149-154
OTHER DISCLOSURES 155
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STATE OF NEW MEXICO
Town of Taos
Official Roster
June 30, 2015
Town Council
Name Title
Daniel Barrone Mayor
Judith Cantu Councilor
George “Fritz” Hahn Councilor
Andrew Gonzales Councilor
Frederick Peralta Councilor
Administration
Richard Bellis Town Manager
Marietta Fambro Finance Director
Renee Lucero Town Clerk
Richard Chavez
Floyd W. Lopez
Municipal Judge
Town Attorney
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FINANCIAL SECTION
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2700 San Pedro NE Albuquerque NM 87110 www.acgsw.com T: 505.883.2727 F: 505.884.6719
INDEPENDENT AUDITORS’ REPORT
Timothy Keller
New Mexico State Auditor
The United States Office of Management and Budget and
The Town Council
Town of Taos
Taos, New Mexico
Report on Financial Statements
We have audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund, the
aggregate remaining fund information, and the budgetary comparison for the general fund of the Town of Taos (the “Town”), as of and for
the year ended June 30, 2015, and the related notes to the financial statements which collectively comprise the Town’s basic financial
statements as listed in the table of contents. We also have audited the financial statements of each of the Town’s nonmajor governmental
funds, and the budgetary comparisons for the proprietary funds, the major capital projects fund, and all nonmajor funds presented as
supplementary information, as defined by the Governmental Accounting Standards Board, in the accompanying combining and individual
fund financial statements as of and for the year ended June 30, 2015, as listed in the table of contents.
Management’s Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles
generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant
to the preparation and fair presentation of financial statements that are free from material misstatements, whether due to fraud or error.
Auditor’s Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with
auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in
Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform
the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The
procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the Town’s
preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances,
but not for the purpose of expressing an opinion on the effectiveness of the Town’s internal control. Accordingly, we express no such
opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting
estimates made by management, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.
Opinions
In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the
governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the Town of Taos,
as of June 30, 2015, and the respective changes in financial position and where applicable, cash flows thereof, and the respective budgetary
comparison for the general fund for the year then ended in accordance with accounting principles generally accepted in the United States
of America.
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In addition, in our opinion, the financial statements referred to above present fairly, in all material aspects, the respective financial position
of each nonmajor governmental fund as of June 30, 2015, and the respective changes in financial position thereof and the respective
budgetary comparisons for the proprietary funds, major capital projects fund, and all nonmajor funds for the year then ended in accordance
with accounting principles generally accepted in the United States of America.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis on pages
12 through 19 and Schedules I and II and the Notes to the Required Supplementary Information on pages 72 through 78 be presented to
supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the
Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial
statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required
supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of
inquiries of management about the methods of preparing the information and comparing the information for consistency with
management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic
financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not
provide us with sufficient evidence to express an opinion or provide any assurance.
Other Information
Our audit was conducted for the purpose of forming opinions on the Town’s basic financial statements, the combining and individual fund
financial statements, and the budgetary comparisons. The Schedule of Expenditures of Federal Awards as required by Office of
Management and Budget Circular A-133, Audits of State, Local Governments, and Non-Profit Organizations, introductory section, and
Supporting Schedules III through VII required by Section 2.2.2 NMAC are presented for purposes of additional analysis and are not a
required part of the basic financial statements.
The Schedule of Expenditures of Federal Awards and Supporting Schedules III through VI required by Section 2.2.2 NMAC are the
responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the
basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial
statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting
and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional
procedures in accordance with the auditing standards generally accepted in the United States of America. In our opinion, the Schedule of
Expenditures of Federal Awards and Supporting Schedules III through VI required by Section 2.2.2 NMAC are fairly stated, in all material
respects, in relation to the basic financial statements as a whole.
The introductory section and Schedule VII has not been subjected to the auditing procedures applied in the audit of the basic financial
statements, and accordingly, we do not express an opinion or provide any assurance on it.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated November 27, 2015, on our consideration of the
Town’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts
and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial
reporting and compliance and the results of that testing, and not to provide an opinion on the internal control over financial reporting or on
compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the
Town’s internal control over financial reporting and compliance.
Accounting & Consulting Group, LLP
Albuquerque, NM
November 27, 2015
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We are pleased to present the Town of Taos’s financial statements for the fiscal year ended June 30, 2015. Management’s discussion
and analysis of these statements is also provided to help the reader fully understand the Town’s financial condition.
FINANCIAL HIGHLIGHTS
The Town of Taos’ total assets exceeded its total liabilities at the close of the fiscal year by $71,801,966 (net position). Of this
amount, ($1,342,589) (unrestricted net position), is now a negative due to the implementation of GASB Statement No. 68).
The restatement of $8,778,694 for the Pension Plan Liability is the underlying factor of this negative unrestricted net position.
This GASB Statement is reflected on the financial statements for the first time in the history of the Town and other
governmental entities throughout the entire state. Even though ending the year with this negative amount, the Town has at this
time the available cash balances to meet the government’s ongoing obligations to its citizens and creditors.
The Town’s total net position increased by $1,683,680 during the fiscal year. The majority of this overall increase was due to
increases in charges for services, capital grants and taxes.
As of June 30, 2015, the Town’s governmental activities reported a combined ending net position balance of $43,838,814. Of
this total, $3,242,321 is designated for debt service and capital projects.
At the close of the current fiscal year, the unassigned fund balance for the general fund was $3,047,564, amounting to 31
percent or of total general fund expenditures.
The Town of Taos’ total debt decreased by $835,906 during the year due to scheduled principal payments being paid. The
Town did acquire new debt during the year for the purchase of a new fire pumper. Compensated absences have decreased from
the prior year by $23,541. The Town paid $1,361,781 towards the principal of various of its government loans, bonds,
compensated absences and contracts payable
Overview of the Financial Statements
The Town’s basic financial statements comprise three components: 1) government-wide financial statements; 2) fund financial
statements; and 3) notes to the financial statements. This report also contains other supplementary information in addition to the basic
financial statements themselves.
Government-wide financial statements. The government-wide financial statements are designed to provide readers with a broad
overview of the Town of Taos’ finances, in a manner similar to a private-sector business.
The statement of net position presents information on all of the Town of Taos’ assets and liabilities, with the difference between the two
reported as net position. Over time, increases or decreases in net position may serve as a useful indicator regarding whether or not the
financial position of the Town of Taos is improving or deteriorating.
The statement of activities presents information showing how the government’s net position changed during the most recent fiscal year.
All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of
related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in
future fiscal periods (e.g., uncollected taxes and earned but unused personal leave).
Both of the government-wide financial statements distinguish functions of the Town of Taos that are principally supported in a majority
by taxes and a minimal amount from other miscellaneous receipts (governmental activities) from other functions that are intended to
recover all or a significant portion of their costs through user fees and charges (business-type activities). The governmental activities of
the Town of Taos include general government, public safety, public works, culture and recreation, and health and welfare. The
business-type activities of the Town include joint Water and Sewer Services, Solid Waste Services, and the Taos Regional Landfill.
The government-wide financial statements can be found in Exhibits A-1 and A-2 of this report.
Fund financial statements. A fund is a grouping of related accounts that is used to maintain control over resources that have been
segregated for specific activities or objectives. The Town of Taos, like other state and local governments, uses fund accounting to
ensure and demonstrate compliance with finance-related legal requirements. All of the funds of the Town of Taos can be divided into
three categories: governmental funds, proprietary funds, and fiduciary funds.
Governmental Funds. Governmental funds are used to account for essentially the same functions reported as governmental activities in
the government-wide financial statements. However, unlike the government-wide financial statements, governmental fund financial
statements focus on daily inflows and outflows of spendable resources, as well as on balances of spendable resources available at the
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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-six 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-four governmental funds are combined into a single, aggregated presentation. Individual fund data for each of these
nonmajor governmental funds is provided in the form of combining statements elsewhere in this report.
The Town of Taos adopts an annual appropriated budget for its general fund, capital equipment replacement, special revenue fund, fire,
police, GRT, and all other funds. A budgetary comparison statement has been provided for the General Fund to demonstrate
compliance with this budget. In addition, the individual financial statements of the nonmajor governmental fund types include
budgetary comparison data.
The basic governmental fund financial statements can be found in Exhibits B-1 through C-1 of this report.
Proprietary funds. Proprietary funds are generally used to account for services for which the Town charges customers – either outside
customers or internal units or departments of the Town. Proprietary funds provide the same type of information as shown in the
government-wide financial statements, only in more detail. The Town maintains 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 recreation events. The basic fiduciary
fund financial statement can be found in Exhibit E-1 of this report.
Notes to the financial statements. The notes provide additional information that is essential to a full understanding of the data
provided in the government-wide and fund financial statements. The notes to the financial statements can be found on pages 37-70 of
this report.
Combining statements. The combining statements referred to earlier in connection with nonmajor governmental funds are presented
immediately following the notes to the financial statements. Combining and individual fund statements and schedules can be found on
pages 84-95 of this report.
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GOVERNMENT-WIDE FINANCIAL ANALYSIS
Analysis of Net Position
As noted earlier, the net of assets over liabilities, otherwise known as net position, may serve over time as a useful indicator of a
government’s financial position. In the case of the Town of Taos, assets exceeded liabilities by $71,801,966 at the close of the current
fiscal year.
The significant portion of the Town of Taos’ net position represents the Town’s investment of $64,110,273 in capital assets (e.g., land
improvements, buildings, infrastructure and machinery & equipment), less any related outstanding debt used to acquire those assets.
The Town of Taos uses these capital assets to provide services to its citizens, so these assets are not available for future spending.
Although the Town of Taos’ investment in its capital assets is reported net of related debt, it should be noted that the resources needed
to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities.
Governmental Business-Type
Activities Activities Total
Assets
Current and other assets 10,273,081$ 5,167,371$ 15,440,452$
Restricted cash, cash equivalents & investments 133,895 2,836,673 2,970,568
Restricted investments 655,942 1,536,927 2,192,869
Bond issuance costs and discount - - -
Capital assets, net of accumulated 50,349,740 26,294,311 76,644,051
depreciation
Total assets 61,412,658 35,835,282 97,247,940
Deferred Outflows of Resources
Change in assumptions 33,607 3,589 37,196
Employer contributions subsequent to the measurement date 830,601 88,695 919,296
Total deferred outflows of resources 864,208 92,284 956,492
Total assets and deferred outflows of resources 62,276,866$ 35,927,566$ 98,204,432$
Liabilities
Current Liabilities 2,382,256$ 1,111,914$ 3,494,170$
Non-current liabilities 13,756,910 6,607,016 20,363,926
Total liabilities 16,139,166 7,718,930 23,858,096
Deferred Inflows of Resources
Change in assumptions 119,545 12,765 132,310
Net difference between projected and actual investment
earnings on pension plan investments 2,179,341 232,719 2,412,060
Total deferred inflows of resources 2,298,886 245,484 2,544,370
Net Position
Net investment in capital assets 42,373,210 21,737,063 64,110,273
Restricted 4,944,808 4,089,474 9,034,282
Unrestricted (3,479,204) 2,136,615 (1,342,589)
Total net position 43,838,814$ 27,963,152$ 71,801,966$
Total Liabilities and Net Position 62,276,866$ 35,927,566$ 98,204,432$
A portion of the Town of Taos’ governmental restricted net position of $4,944,808 (11 percent) represents resources that are subject to
restrictions related to covenants arising from the Town’s long-term debt issuance and capital projects. The remaining balance of
unrestricted net position, ($3,479,204) previously stated above, has fallen to a negative due to the implementation of GASB Statement
68. In the previous year, this amount was $3,477,536 of which may still may be used to meet the government’s ongoing obligations to
citizens and creditors.
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At the end of the current fiscal year, the Town of Taos is able to report positive balances in all categories of net position for both
governmental and business-type activities.
Analysis of Changes in Net Position
The Town’s net position increased by $1,683,680 during the fiscal year. This increase is primarily the result of increased charges for
services, operating and capital grants and other taxes during the fiscal year.
Governmental Business-type
Revenues Activities Activities Total
Program revenues:
Charges for service 1,386,617$ 5,903,490$ 7,290,107$
Operating grants and contributions 1,057,536 - 1,057,536
Capital grants and contributions 3,164,550 3,164,550
General revenues:
Property taxes, levied for general purposes 1,046,280 - 1,046,280
Gross receipts taxes 10,455,571 528,195 10,983,766
Gasoline and auto distribution taxes 375,915 - 375,915
Other taxes 1,311,378 - 1,311,378
Interest income (loss)11,230 6,463 17,693
Miscellaneous income 14,816 16,761 31,577
Transfers - -
Loss on disposal of capital assets (402,348) - (402,348)
Total Revenues 18,421,545 6,454,909 24,876,454
Program expenses:
General government 8,765,816$ -$ 8,765,816$
Public safety 3,362,296 - 3,362,296
Public works 1,285,347 - 1,285,347
Culture and recreation 2,249,519 - 2,249,519
Health and welfare 630,155 - 630,155
Interest on long-term debt 285,242 - 285,242
Joint water and sewer - 4,307,462 4,307,462
Solid waste - 1,383,395 1,383,395
Taos Regional Landfill - 923,542 923,542
Total Expenses 16,578,375 6,614,399 23,192,774
Change in net position 1,843,170 (159,490) 1,683,680
Net Position, beginning 49,927,357 28,969,623 78,896,980
Net Position,restatement (Note 20)(7,931,713) (846,981) (8,778,694)
Net Position, beginning as restated 41,995,644 28,122,642 70,118,286
Net Position, ending 43,838,814$ 27,963,152$ 71,801,966$
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Governmental activities. Governmental activities increased the Town of Taos’ net position by $1,843,170, primarily as the result of
increase in capital grants and contributions and gross receipts taxes. Along with expenditures being less $658,713 than last fiscal year.
Tax revenues account for $13,189,144 or 72 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 $4,222,086 or 23 percent of total governmental
revenues. The primary recipients of these revenues are general government, public works and public safety.
The Town’s direct charges to users of governmental services made up $1,386,617 or 8 percent of total governmental revenues. These
charges are for fees, fines and forfeitures, and licenses and permits.
Business-type activities. Business-type activities decreased the Town’s net position by $159,490.
The Town’s direct charges to users of business-type services made up $5,903,490 or 91 percent of total business-type revenues. These
charges are for water and sewer services, and water and sewer connection fees, landfill tipping fees and solid waste services. These
direct charges for service increased by $779,276 from the previous year, primarily as the result of a rate increase in the landfill tipping
fees and the 4th year of a rate increase in the water and sewer rates. Even though revenues were up, expenditures exceeded revenues in
the joint water and sewer program which contributed to the decrease in the net position. The Town has started looking at the joint water
and sewer program in ways to reduce expenditures, such as refunding of debt service and analysis of direct cost of employees expensed
to the program.
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FINANCIAL ANALYSIS OF THE TOWN’S FUNDS
The Town of Taos uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements.
Governmental funds. The focus of the Town of Taos’ governmental funds is to provide information on near-term inflows, outflows,
and balances of spendable resources. Such information is useful in assessing the Town of Taos’ financing requirements. In particular,
unassigned fund balance may serve as a useful measure of a government’s net resources available for spending at the end of the fiscal
year. Types of Governmental funds reported by the Town include the General Fund, Special Revenue Funds, Debt Service Funds and
Capital Projects Funds.
Revenues for governmental functions overall totaled approximately $18,745,851 in the fiscal year ended June 30, 2015, which
represents an increase of $519,027 from the fiscal year ended June 30, 2014. This is largely due to the increase in gross receipts, federal
and state capital grants and state operating grants. Expenditures for governmental functions, totaling $18,238,641 increased by
approximately $261,797 from the fiscal year ended June 30, 2014. This is largely due to the increase in expenditures public safety and
capital outlay. In the fiscal year ended June 30, 2015, revenues for governmental functions exceeded expenditures by approximately
$507,210.
The General Fund is the chief operating fund of the Town of Taos. It is from here that the Town pays for the public safety and other
basic services it provides to its citizens. At the end of the current fiscal year, unassigned fund balance of the general fund was
$3,047,564.
Overall, the general fund’s performance resulted in revenues over expenditures in the fiscal year ended June 30, 2015 of $1,328,720 an
increase of $247,632 over the comparable figure from the prior year of $1,081,088. The Town’s overall financial position improved
with continued music venue for tourists and locals alike bringing in additional gross receipts tax.
Proprietary Funds. The Town’s proprietary funds provide the same type of information found in the government-wide financial
statements, but in more detail.
At the end of the fiscal year, the unrestricted net position for enterprise funds were $2,136,615. The total decrease in net position for the
enterprise funds was ($159,490). 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.
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General Fund Budgetary Highlights
Town budgets reflect the same pattern as seen in the revenue and expenditures of the Town. The State of New Mexico budget process
is defined under state law and regulation. To enhance the process of developing a budget at the Town level, Taos utilizes goals and
objectives defined by the Town Council, community input meetings, long term plans and input from various staff groups to develop the
Town budget. Town defines its priorities through this process.
GASB Statement No. 34 does not require a statement presenting the overall result of the budget for each year; however, all major
budgetary funds are required to be reported as a separate statement.
The following table examines the summary budget performance of the general fund for the fiscal year ending June 30, 2015. Detailed
budget performance is examined through the Statement of Revenues, Expenditures, and Changes in Fund Balance for the General fund
found at Exhibit C-1. The Town’s final budget differs from the original budget due to amendments that were made during the fiscal
year and the increase of expenditures. Actual general fund expenditures were $643,973 less than budgeted. This was primarily due to
general governmental favorable variance of $491,801. The difference between actual expenditures and budgeted expenditures is due to
various departments not spending there projected costs along with personnel vacancy savings over the course of the fiscal year.
Budget Amounts
Original Final
Expenditures:
General government 4,833,299$ 4,784,746$ 4,292,945$ 491,801$
Public safety 3,311,853 3,257,692 3,154,434 103,258
Public works 1,006,324 954,626 946,062 8,564
Culture and recreation 1,523,809 1,442,924 1,405,627 37,297
Capital outlay - 23,000 19,947 3,053
Total Expenditures 10,675,285$ 10,462,988$ 9,819,015$ 643,973$
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, 2015 amount to
$76,644,051 (net of accumulated depreciation). Capital assets include land, land improvements, buildings and improvements, furniture,
fixtures and equipment, and infrastructure. The Town’s capital assets for the current fiscal year increased $375,773 for governmental
activities and decreased $767,219 for business-type activities (net of accumulated depreciation).
The significant additions to capital assets during the year were as follows:
$3,614,192 of additions to governmental infrastructure and equipment for completion and/or purchase of the following –
Town Hall Drive Improvements, Chamisa Area Infrastructure Improvements – Phase III -Paving, Bertha Road Improvements
and Camino de la Merced Road Improvements.
$1,266,492 of additions to business-type infrastructure of the following – La Posta Sewer Crossing, Bertha Road Water/Sewer
Improvements, and Camino de la Merced Water/Sewer Improvements.
17
Capital Asset and Debt Administration (continued)
Governmental Business-like
Activities Activities Total
Land 6,277,809$ 262,422$ 6,540,231$
Constuction in progress 4,420,772 654,898 5,075,670
Land improvements 7,461,945 104,895 7,566,840
Buildings and improvements 34,542,166 4,656,981 39,199,147
Machinery and Equipment 15,744,890 8,861,368 24,606,258
Infrastructure 54,170,366 33,499,623 87,669,989
Total capital assets 122,617,948 48,040,187 170,658,135
Less: accumulated depreciation (72,268,208) (21,745,876) (94,014,084)
Total property, plant and equipment, net
of accumulated depreciation 50,349,740$ 26,294,311$ 76,644,051$
For government-wide financial statement presentation purposes, all depreciable capital assets were depreciated from acquisition date to
the end of the current fiscal year. Fund financial statements record capital asset purchases as expenditures. See Note 6 in the
accompanying Notes to the Financial Statements for further information regarding capital assets.
Debt Administration. At the end of the current fiscal year, the Town of Taos had total long-term obligations outstanding of
$14,544,324. The Town did acquire new debt for a fire pumper, with the first interest and principal payment due in fiscal year 2016.
Governmental Business-type
Activities Activities Total
Revenue Bonds 4,675,000$ 1,909,600$ 6,584,600$
NMFA amd RUS Loans 3,001,530 2,647,648 5,649,178
USDA Contract Payable - - -
Compensated absences 566,383 67,142 633,525
Landfill Closure Liability - 1,677,021 1,677,021
Total long-term liabilities 8,242,913$ 6,301,411$ 14,544,324$
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
REQUESTS FOR INFORMATION
This financial report is designed to provide a general overview of the Town of Taos’ finances for all of those with an interest in the
government’s finances. Questions concerning any of the information provided in this report or requests for additional financial
information should be addressed to the Town of Taos – Finance Director, Town of Taos, 400 Camino de la Placita, Taos, New Mexico,
87571, (575) 751-2024.
19
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20
BASIC
FINANCIAL STATEMENTS
21
Governmental
Activities
Business-type
Activities Total
Assets
Current assets
Cash and cash equivalents 4,471,236$ 2,651,452$ 7,122,688$
Investments 2,540,584 1,641,183 4,181,767
Receivables:
Property taxes 196,206 - 196,206
Other taxes 2,077,890 83,544 2,161,434
Due from other governments 960,409 - 960,409
Customer receivables, net - 772,228 772,228
Inventory - 45,720 45,720
Internal balances 26,756 (26,756) -
Total current assets 10,273,081 5,167,371 15,440,452
Noncurrent assets
Restricted cash and cash equivalents 133,895 2,836,673 2,970,568
Restricted investments 655,942 1,536,927 2,192,869
Capital assets 122,617,948 48,040,187 170,658,135
Less: accumulated depreciation (72,268,208) (21,745,876) (94,014,084)
Total noncurrent assets 51,139,577 30,667,911 81,807,488
Total assets 61,412,658 35,835,282 97,247,940
Deferred outflows of resources
Change in assumptions 33,607 3,589 37,196
Employer contributions subsequent to the measurement
date 830,601 88,695 919,296
Total deferred outflows of resources 864,208 92,284 956,492
Total assets and deferred outflows of resources 62,276,866$ 35,927,566$ 98,204,432$
STATE OF NEW MEXICO
Primary Government
The accompanying notes are an integral part of these financial statements
June 30, 2015
Statement of Net Position
Town of Taos
22
Exhibit A-1
Governmental
Activities
Business-type
Activities Total
Liabilities
Current liabilities
Accounts payable 1,059,570$ 396,122$ 1,455,692$
Accrued payroll 192,593 25,914 218,507
Deposits held in trust for others 5,103 282,828 287,931
Accrued compensated absences 336,347 32,763 369,110
Accrued interest 29,600 43,417 73,017
Current portion of bonds payable 300,000 54,000 354,000
Current portion of loans payable 459,043 276,870 735,913
Total current liabilities 2,382,256 1,111,914 3,494,170
Noncurrent liabilities
Accrued compensated absences 230,036 34,379 264,415
Accrued landfill closure costs - 1,677,021 1,677,021
Bond premiums, net of accumulated
amortization of $28,658 42,184 - 42,184
Bonds payable 4,375,000 1,855,600 6,230,600
Loans and payable 2,842,487 2,370,778 5,213,265
Net pension liability 6,267,203 669,238 6,936,441
Total noncurrent liabilities 13,756,910 6,607,016 20,363,926
Total liabilities 16,139,166 7,718,930 23,858,096
Deferred inflows of resources
Change in assumptions 119,545 12,765 132,310
Net difference between projected and actual investment
earnings on pension plan investments 2,179,341 232,719 2,412,060
Total deferred inflows of resources 2,298,886 245,484 2,544,370
Net Position
Net investment in capital assets 42,373,210 21,737,063 64,110,273
Restricted for:
Debt service 356,250 3,214,309 3,570,559
Capital projects 2,886,071 - 2,886,071
Special revenue 1,702,487 - 1,702,487
Landfill - 875,165 875,165
Unrestricted (3,479,204) 2,136,615 (1,342,589)
Total net position 43,838,814 27,963,152 71,801,966
Total liabilities, deferred inflows of resources and net position 62,276,866$ 35,927,566$ 98,204,432$
Primary Government
23
Functions/Programs
Expenses
Charges for
Services
Operating
Grants and
Contributions
Capital Grants
and
Contributions
Governmental Activities:
General government 8,765,816$ 1,214,542$ 328,459$ -$
Public safety 3,362,296 - 225,842 -
Public works 1,285,347 - - 3,164,550
Culture and recreation 2,249,519 128,899 - -
Health and welfare 630,155 43,176 503,235 -
Interest on long-term debt 285,242 - - -
Total governmental activities 16,578,375 1,386,617 1,057,536 3,164,550
Business-type Activities:
Water and sewer 4,307,462 3,331,297 - -
Solid waste 1,383,395 1,375,185 - -
Taos regional landfill 923,542 1,197,008 - -
Total business-type activities 6,614,399 5,903,490 - -
Total primary government 23,192,774$ 7,290,107$ 1,057,536$ 3,164,550$
General Revenues:
Taxes:
Property taxes, levied for general purposes
Gross receipts taxes
Gasoline and motor vehicle taxes
Franchise taxes
Lodger's taxes
Investment income
Miscellaneous income
Loss on disposal of capital assets
Total general revenues
Change in net position
Net position, beginning
Net position- restatement (Note 20)
Net position- beginning as restated
Net position, ending
STATE OF NEW MEXICO
Town of Taos
Statement of Activities
For the Year Ended June 30, 2015
The accompanying notes are an integral part of these financial statements
Program Revenues
24
Exhibit A-2
Governmental
Activities
Business-Type
Activities Total
(7,222,815)$ -$ (7,222,815)$
(3,136,454) - (3,136,454)
1,879,203 - 1,879,203
(2,120,620) - (2,120,620)
(83,744) - (83,744)
(285,242) - (285,242)
(10,969,672) - (10,969,672)
- (976,165) (976,165)
- (8,210) (8,210)
- 273,466 273,466
- (710,909) (710,909)
(10,969,672) (710,909) (11,680,581)
1,046,280 - 1,046,280
10,455,571 528,195 10,983,766
375,915 - 375,915
255,136 - 255,136
1,056,242 - 1,056,242
11,230 6,463 17,693
14,816 16,761 31,577
(402,348) - (402,348)
12,812,842 551,419 13,364,261
1,843,170 (159,490) 1,683,680
49,927,357 28,969,623 78,896,980
(7,931,713) (846,981) (8,778,694)
41,995,644 28,122,642 70,118,286
43,838,814$ 27,963,152$ 71,801,966$
Net (Expense) Revenue and Changes in Net Position
25
Exhibit B-1
Page 1 of 2
General Fund
Airport
Construction
Other
Governmental
Funds Total
Assets
Cash and cash equivalents 1,806,076$ 785,750$ 2,013,305$ 4,605,131$
Investments 1,295,310 - 1,901,216 3,196,526
Receivables:
Property taxes 196,206 - - 196,206
Other taxes 1,502,183 - 575,707 2,077,890
Due from other governments - 608,518 351,891 960,409
Due from other funds 26,756 - - 26,756
Total assets 4,826,531$ 1,394,268$ 4,842,119$ 11,062,918$
Liabilities
Accounts payable 167,030$ 604,675$ 287,865$ 1,059,570$
Accrued payroll 184,687 - 7,906 192,593
Deposits held in trust for others - - 5,103 5,103
Total liabilities 351,717 604,675 300,874 1,257,266
Deferred inflows of resources
Unavailable revenue- property taxes 169,556 - - 169,556
Unavailable revenue- delinquent lodgers tax - - 170,583 170,583
Total deferred inflows of resources 169,556 - 170,583 340,139
Fund balances
Spendable
Restricted for:
General government - - 666,697 666,697
Public safety - - 61,083 61,083
Culture and recreation - - 602,364 602,364
Fire protection - - 687,220 687,220
Health and welfare - - 84,919 84,919
Debt service expenditures - - 357,353 357,353
Capital projects - 789,593 1,913,349 2,702,942
Committed for:
Minimum fund balance 818,251 - - 818,251
Subsequent year's expenditures 439,443 - - 439,443
Unassigned 3,047,564 - (2,323) 3,045,241
Total fund balances 4,305,258 789,593 4,370,662 9,465,513
Total liabilities, deferred inflows of resources,
and fund balances 4,826,531$ 1,394,268$ 4,842,119$ 11,062,918$
June 30, 2015
Governmental Funds
Balance Sheet
Town of Taos
STATE OF NEW MEXICO
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 Position
are different because:
Fund balances - total governmental funds 9,465,513$
Capital assets used in governmental activities are not financial resources
and, therefore, are not reported in the funds 50,349,740
Delinquent property taxes and lodger's tax settlement not collected within sixty
days after year end are not considered "available" revenues and are considered
to be unavailable revenue in the fund financial statements, but are considered
revenue in the Statement of Activities 340,139
Interest on long-term debt is not accrued in the fund financial statements
unless it is due and payable:
Accrued interest (29,600)
Deferred outflows and inflows of resources related to pensions are applicable to
future periods and therefore, are not reported in funds:
Deferred outflows of resources related to change in assumptions 33,607
Deferred outflows of resources related to employer contributions subsequent to
the measurement date 830,601
Deferred inflows of resources related to change in assumptions (119,545)
(2,179,341)
Some liabilities, including bonds payable, loans and net pension payable are not due
and payable in the current period and, therefore, are not reported in the funds:
Accrued compensated absences (566,383)
Bond premiums (42,184)
Bonds payable (4,675,000)
Loans payable (3,301,530)
Net pension liability (6,267,203)
Total net position of governmental activities 43,838,814$
June 30, 2015
The accompanying notes are an integral part of these financial statements
Governmental Funds
Reconciliation of the Balance Sheet to the Statement of Net Position
Deferred inflows of resources related to Net difference between projected and actual
investment earnings on pension plan investments
27
Exhibit B-2
Page 1 of 2
General Fund
Airport
Construction
Other
Governmental
Funds Total
Revenues
Taxes
Property 1,012,671$ -$ -$ 1,012,671$
Gross receipts 8,731,661 - 1,723,910 10,455,571
Gasoline and motor vehicle taxes 254,332 - 121,583 375,915
Lodger's taxes - - 1,011,809 1,011,809
Other 255,136 - - 255,136
Intergovernmental income .
Federal operating grants - - 144,030 144,030
Federal capital grants - 2,069,246 500,000 2,569,246
State operating grants 112,900 - 800,606 913,506
State capital grants - 113,655 481,649 595,304
Charges for services 275,506 - 473,402 748,908
Licenses and fees 496,674 - 141,035 637,709
Investment income 6,146 - 5,084 11,230
Miscellaneous 2,709 - 12,107 14,816
Total revenues 11,147,735 2,182,901 5,415,215 18,745,851
Expenditures
Current
General government 4,292,945 - 1,086,944 5,379,889
Public safety 3,154,434 - 192,676 3,347,110
Public works 946,062 - 51,719 997,781
Culture and recreation 1,405,627 - 864,309 2,269,936
Health and welfare - - 666,016 666,016
Capital outlay 19,947 2,297,763 2,304,152 4,621,862
Debt service
Principal - - 670,341 670,341
Interest - - 285,706 285,706
Total expenditures 9,819,015 2,297,763 6,121,863 18,238,641
Excess (deficiency) of revenues over
expenditures 1,328,720 (114,862) (706,648) 507,210
Other financing sources (uses)
Proceeds from issuance of debt - - 434,994 434,994
Transfers in 6,767,358 413,000 3,235,269 10,415,627
Transfers out (7,690,658) - (2,724,969) (10,415,627)
Total other financing sources (uses)(923,300) 413,000 945,294 434,994
Net change in fund balances 405,420 298,138 238,646 942,204
Fund balance - beginning of year 3,899,838 491,455 4,132,016 8,523,309
Fund balance - end of year 4,305,258$ 789,593$ 4,370,662$ 9,465,513$
For the Year Ended June 30, 2015
Governmental Funds
Statement of Revenues, Expenditures and Changes in Fund Balances
Town of Taos
STATE OF NEW MEXICO
The accompanying notes are an integral part of these financial statements
28
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 942,204$
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 4,621,862
Depreciation expense (3,843,741)
Loss of disposition of capital assets (402,348)
Revenues in the Statement of Activities that do not provide current financial
resources are not reported as revenue in the funds:
Increase in unavailable revenue related to property taxes receivable 33,609
Increase in lodger's tax settlement revenue not received within the period of availability 44,433
Governmental funds report Town pension contributions as expenditures. However
in the Statement of Activities, the cost of pension benefits earned net of employee
contributions is reported as pension expense:
Town pension contributions 830,601
Pension expense (600,769)
The issuance of long-term debt (e.g. bonds, loans, leases) provides current financial
resources to governmental funds, while the repayment of the principal of long-term
debt consumes the current financial resources of govermental funds. Neither
transaction, however, has any effect on net position. Also, governmental funds
report the effect of premiums, discounts, and similar items when debt is first issued,
whereas these amounts are deferred and amortized in the Statement of Activities:
Decrease in accrued interest 464
Increase in accrued compensated absences (22,356)
Amortization of bond premiums 3,864
Proceeds from the issuance of debt (434,994)
Principal payments on bonds payable 290,000
Principal payments on loans payable 380,341
Change in net position of governmental activities 1,843,170$
Reconciliation of the Statement of Revenues, Expenditures and Changes
in Fund Balances of Governmental Funds to the Statement of Activities
For the Year Ended June 30, 2015
The accompanying notes are an integral part of these financial statements
29
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30
STATE OF NEW MEXICO Exhibit C-1
Variances
Actual
Favorable
(Unfavorable)
Original Final (GAAP Basis)Final to Actual
Revenues
Taxes
Property taxes 1,005,921$ 1,005,921$ 1,012,671$ 6,750$
Gross receipts 8,160,703 8,552,711 8,731,661 178,950
Gas and motor vehicle 256,741 261,150 254,332 (6,818)
Other 378,101 378,101 255,136 (122,965)
Intergovernmental income
State operating grants 102,740 102,740 112,900 10,160
Charges for services 266,255 266,255 275,506 9,251
Licenses and fees 556,262 556,262 496,674 (59,588)
Interest income 5,341 5,341 6,146 805
Miscellaneous 34,432 34,432 2,709 (31,723)
Total revenues 10,766,496 11,162,913 11,147,735 (15,178)
Expenditures
Current
General government 4,833,299 4,784,746 4,292,945 491,801
Public safety 3,311,853 3,257,692 3,154,434 103,258
Public works 1,006,324 954,626 946,062 8,564
Culture and recreation 1,523,809 1,442,924 1,405,627 37,297
Capital outlay - 23,000 19,947 3,053
Total expenditures 10,675,285 10,462,988 9,819,015 643,973
Excess (deficiency) of revenues over expenditures 91,211 699,925 1,328,720 628,795
Other financing sources (uses)
Designated cash (budgeted increase in cash)611,283 223,375 - (223,375)
Transfers in 6,462,382 6,767,358 6,767,358 -
Transfers out (7,164,876) (7,690,658) (7,690,658) -
Total other financing sources (uses)(91,211) (699,925) (923,300) (223,375)
Net change in fund balance - - 405,420 405,420
Fund balance - beginning of year - - 3,899,838 3,899,838
Fund balance - end of year -$ -$ 4,305,258$ 4,305,258$
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, 2015
The accompanying notes are an integral part of these financial statements
31
Water and
Sewer Solid Waste Total
Assets
Current assets
Cash and cash equivalents 1,013,912$ 418,040$ 1,219,500$ 2,651,452$
Investments 1,316,683 249,100 75,400 1,641,183
Other taxes 83,544 - - 83,544
Customer receivables, net 468,915 162,808 140,505 772,228
Inventory 45,720 - - 45,720
Total current assets 2,928,774 829,948 1,435,405 5,194,127
Noncurrent assets
Restricted cash and cash equivalents 2,052,866 - 783,807 2,836,673
Restricted investments 1,343,498 - 193,429 1,536,927
Capital assets 42,684,306 1,079,996 4,275,885 48,040,187
Less: accumulated depreciation (19,457,148)(530,139) (1,758,589) (21,745,876)
Total noncurrent assets 26,623,522 549,857 3,494,532 30,667,911
Total assets 29,552,296 1,379,805 4,929,937 35,862,038
Deferred outflows of resources
Change in assumptions 2,312 439 838 3,589
Employer contributions subsequent to the measurement
date 57,142 10,853 20,700 88,695
Total deferred outflows of resources 59,454 11,292 21,538 92,284
Total assets and deferred outflows of resources 29,611,750$ 1,391,097$ 4,951,475$ 35,954,322$
Statement of Net Position
Town of Taos
STATE OF NEW MEXICO
The accompanying notes are an integral part of these financial statements
Taos Regional
Landfill
Enterprise Funds
June 30, 2015
Proprietary Funds
32
Exhibit D-1
Water and
Sewer Solid Waste Total
Liabilities
Current liabilities
Accounts payable 292,503$ 16,239$ 87,380$ 396,122$
Accrued payroll 15,855 3,459 6,600 25,914
Meter deposits payable 282,828 - - 282,828
Accrued compensated absences 30,435 2,328 - 32,763
Interfund payable 16,120 5,481 5,155 26,756
Accrued interest payable 41,309 - 2,108 43,417
Current portion of bonds payable 54,000 - - 54,000
Current portion of loans payable 165,197 - 111,673 276,870
Total current liabilities 898,247 27,507 212,916 1,138,670
Noncurrent liabilities
Accrued compensated absences 11,595 - 22,784 34,379
Accrued landfill closure costs - - 1,677,021 1,677,021
Bonds payable 1,855,600 - - 1,855,600
Loans payable 2,137,192 - 233,586 2,370,778
Net pension liability 431,158 81,890 156,190 669,238
Total noncurrent liabilities 4,435,545 81,890 2,089,581 6,607,016
Total liabilities 5,333,792 109,397 2,302,497 7,745,686
Deferred inflows of resources
Change in assumptions 8,224 1,562 2,979 12,765
Net difference between projected and actual investment
earnings on pension plan investments 149,930 28,476 54,313 232,719
Total deferred inflows of resources 158,154 30,038 57,292 245,484
Net position
Net investment in capital assets 19,015,169 549,857 2,172,037 21,737,063
Restricted for:
Debt service 3,113,536 - 100,773 3,214,309
Landfill - - 875,165 875,165
Unrestricted 1,991,099 701,805 (556,289) 2,136,615
Total net position 24,119,804 1,251,662 2,591,686 27,963,152
Total liabilities, deferred inflows of resources and net position 29,611,750$ 1,391,097$ 4,951,475$ 35,954,322$
Enterprise Funds
Taos Regional
Landfill
33
Exhibit D-2
Water and
Sewer Solid Waste Total
Operating revenues
Charges for services 3,331,297$ 1,375,185$ 1,197,008$ 5,903,490$
Total operating revenues 3,331,297 1,375,185 1,197,008 5,903,490
Operating expenses
Personnel services 675,971 129,228 271,027 1,076,226
Contractual services 1,226,540 816,524 290,201 2,333,265
Supplies 40,610 9,061 13,573 63,244
Repairs and maintenance 43,236 63,643 95,071 201,950
Utilities 367,985 240,133 6,487 614,605
Depreciation 1,620,927 57,000 177,431 1,855,358
Other costs 210,885 67,806 57,102 335,793
Total operating expenses 4,186,154 1,383,395 910,892 6,480,441
Operating income (loss) (854,857) (8,210) 286,116 (576,951)
Non-operating revenues (expenses)
Gross receipts taxes 528,195 - - 528,195
Interest expense (121,308) - (12,650) (133,958)
Interest income 5,180 - 1,283 6,463
Miscellaneous income (expense)(2) 16,774 (11) 16,761
Total non-operating revenues (expenses)412,065 16,774 (11,378) 417,461
Income (loss) before transfers (442,792) 8,564 274,738 (159,490)
Transfers in 4,017,673 - 1,354,874 5,372,547
Transfers out (4,017,673) (118,222) (1,236,652) (5,372,547)
Change in net position (442,792) (109,658) 392,960 (159,490)
Net position, beginning 25,108,266 1,464,959 2,396,398 28,969,623
Net position - restatement (Note 20)(545,670) (103,639) (197,672) (846,981)
Net position - beginning as restated 24,562,596 1,361,320 2,198,726 28,122,642
Net position, ending 24,119,804$ 1,251,662$ 2,591,686$ 27,963,152$
Town of Taos
Statement of Revenues, Expenses and Changes in Net Position
Proprietary Funds
For the Year Ended June 30, 2015
STATE OF NEW MEXICO
The accompanying notes are an integral part of these financial statements
Taos Regional
Landfill
Enterprise Funds
34
Exhibit D-3
Total
Cash flows from operating activities
Cash received from user charges 3,169,051$ 1,336,110$ 1,163,489$ 5,668,650$
Cash payments to employees for services (687,348) (130,405) (269,888) (1,087,641)
Cash payments to suppliers for goods and services (1,706,118) (1,276,950) (504,615) (3,487,683)
Net cash provided (used) by operating activities 775,585 (71,245) 388,986 1,093,326
Cash flows from noncapital financing activities
Gross receipts taxes 528,195 - - 528,195
Miscellaneous (expense) income (2) 16,774 (11) 16,761
Payments for noncurrent accrued compensated absences (12,792) - 4,074 (8,718)
Interfund advances (payments) (44,561) (118,120) 118,331 (44,350)
Net cash provided (used) by noncapital
financing activities 470,840 (101,346) 122,394 491,888
Cash flows from capital and related financing activities
Interest paid (128,503) - (12,650) (141,153)
Principal payments on long-term debt (213,785) - (108,545) (322,330)
Acquisition of capital assets (1,076,120) (6,010) (6,010) (1,088,140)
Net cash (used) provided by capital and
related financing activities (1,418,408) (6,010) (127,205) (1,551,623)
Cash flows from investing activities
Purchases of investments (2,503) - - (2,503)
Interest on investments 5,180 - 1,283 6,463
Net cash provided by investing activities 2,677 - 1,283 3,960
Net (decrease) increase in cash and cash equivalents (169,306) (178,601) 385,458 37,551
Cash and cash equivalents - beginning of year 4,579,582 596,641 1,811,278 6,987,501
Cash and cash equivalents - end of year 4,410,276$ 418,040$ 2,196,736$ 7,025,052$
Reconciliation of operating income (loss) to
net cash provided by operating activities:
Operating income (loss) (854,857)$ (8,210)$ 286,116$ (576,951)$
Adjustments to reconcile operating income (loss) to
net cash provided by operating activities:
Depreciation 1,620,928 57,000 177,431 1,855,359
Net pension expense (15,812) (3,003) (5,728) (24,543)
Changes in assets and liabilities
Receivables (162,247) (39,075) (33,519) (234,841)
Accounts payable 177,258 (79,783) (36,453) 61,022
Accrued payroll expenses (1,370) 98 1,139 (133)
Current accrued compensated absences 5,805 1,728 - 7,533
Meter deposits 5,880 - - 5,880
Net cash provided (used) by operating activities 775,585$ (71,245)$ 388,986$ 1,093,326$
Statement of Cash Flows
For the Year Ended June 30, 2015
Enterprise Funds
Taos Regional
Landfill
The accompanying notes are an integral part of these financial statements
STATE OF NEW MEXICO
Town of Taos
Proprietary Funds
Water and
Sewer Solid Waste
35
Exhibit E-1
Assets
Cash 11,176$
Investments 60,000
Total assets 71,176$
Liabilities
Deposits payable 70,793$
Due to other entities 383
Total liabilities 71,176$
Statement of Fiduciary Assets and Liabilities - Agency Funds
Town of Taos
STATE OF NEW MEXICO
June 30, 2015
The accompanying notes are an integral part of these financial statements
36
STATE OF NEW MEXICO
Town of Taos
Notes to the Financial Statements
June 30, 2015
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 summary of significant accounting policies of the Town is presented to assist in the understanding of
Town’s financial statements. The financial statements and notes are the representation of Town’s management
who is responsible for their integrity and objectivity. The financial statements of the Town have been prepared
in conformity with accounting principles generally accepted in the United States of America (GAAP) as applied
to government units.
During the year ended June 30, 2015, the Town adopted GASB Statements No. 68, Accounting and Financial
Reporting for Pensions – an Amendment of GASB Statement No. 27 (“GASB 68”), and No. 71, Pension
Transition for Contributions Made Subsequent to the Measurement Date – an Amendment of GASB Statement
No. 68 (“GASB 71”). These two Statements are required to be implemented at the same time. GASB 68
addresses accounting and financial reporting for pensions that are provided to the employees of state and local
governments through pension plans that are administered through trusts that have the following characteristics:
- Contributions from employers and nonemployer contributing entities to the pension plan and earnings
on those contributions are irrevocable.
- Pension plan assets are dedicated to providing pensions to plan members in accordance with the
benefit terms.
- Pension plan assets are legally protected from the creditors of employers, nonemployer contributing
entities, and the pension plan administrator. If the plan is a defined benefit plan, plan assets are also
legally protected from creditors of the plan members.
GASB 68 establishes standards for measuring and recognizing liabilities, deferred outflows of resources,
deferred inflows of resources, and expense/expenditures related to pensions. For defined benefit pensions, this
Statement identifies the methods and assumptions that should be used to project benefit payments, discount
projected benefit payments to their actuarial present value, and attribute that present value to periods of
employee service. As a result of the implementation of GASB 68, the government recognized a net pension
liability (“NPL”) measured as of a date no later than the end of its prior fiscal year. If the government employer
makes a contribution to the pension plan subsequent to the measurement date but prior to the end of the current
fiscal year, GASB 68 requires the government to recognize that contribution as a deferred outflow of resources.
In addition, GASB 68 requires the recognition of deferred outflows of resources and deferred inflows of
resources for changes in the NPL that arise from other types of events, but does not require the government to
recognize beginning deferred outflows of resources or deferred inflows of resources if the amounts are not
practical to estimate.
37
STATE OF NEW MEXICO
Town of Taos
Notes to the Financial Statements
June 30, 2015
NOTE 1. Summary of Significant Accounting Policies (continued)
A. Financial Reporting Entity (continued)
At transition to Statement 68, Statement 71 requires the employer or nonemployer contributing entity to
recognize a beginning deferred outflow of resources for its pension contributions made subsequent to the
measurement date of the beginning net pension liability but before the start of the government’s fiscal year, thus
avoiding possible understatement of an employer or nonemployer contributing entity’s beginning net position
and expense in the initial period of implementation.
This pronouncement has materially impacted the financial statements and additional disclosures are included in
the notes to the financial statements to highlight the effects.
The financial reporting entity consists of (a) the primary government, (b) organizations for which the primary
government is financially accountable and (c) other organizations for which the nature and significance of their
relationship with the primary government are such that exclusion would cause the reporting entity’s financial
statements to be misleading or incomplete.
In evaluating how to define the Town, for financial reporting purposes, management has considered all
potential component units. The decision to include any potential component units in the financial reporting
entity was made by applying the criteria set forth in GASB Statement No. 14, as amended by GASB Statement
No. 39 and GASB Statement No. 61. Blended component units, although legally separate entities, are in
substance part of the government’s operations. Each discretely presented component unit is reported in a
separate column in the government-wide financial statements to emphasize that it is legally separate from the
government.
The basic-but not the only-criterion for including a potential component unit within the reporting entity is the
governing body’s ability to exercise oversight responsibility. The most significant manifestation of this ability
is financial interdependency. Other manifestations of the ability to exercise oversight responsibility include,
but are not limited to, the selection of governing authority, the designation of management, the ability to
significantly influence operations, and accountability for fiscal matters. 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 second criterion used in evaluating potential component units is the scope of public service. Application of
this criterion involves considering whether the activity benefits the government and/or its citizens.
A third criterion used to evaluate potential component units for inclusion or exclusion from the reporting entity
is the existence of special financing relationships, regardless of whether the government is able to exercise
oversight responsibilities. Finally, the nature and significance of a potential component unit to the primary
government could warrant its inclusion within the reporting entity.
Based upon the application of these criteria, the Town has no component units, and is not a component unit of
another governmental agency.
38
STATE OF NEW MEXICO
Town of Taos
Notes to the Financial Statements
June 30, 2015
NOTE 1. Summary of Significant Accounting Policies (continued)
B. Government-wide and fund financial statements
The government-wide financial statements (i.e., the statement of net position and the statement of
activities) report information on all of the nonfiduciary activities of the primary government. For the
most part, the effect of interfund activity has been removed from these statements. Governmental
activities, which normally are supported by taxes and intergovernmental revenues, are reported
separately from business-type activities, which rely to a significant extent on fees and charges for
support.
The Statement of Net Position and the Statement of Activities were prepared using the economic
resources measurement focus and the accrual basis of accounting. Revenues, expenses, gains, losses,
assets and liabilities resulting from exchange-like transactions are recognized when the exchange
takes place. Revenues, expenses, gains, losses, assets and liabilities resulting from non-exchange
transactions are recognized in accordance with the requirements of GASB Statement No. 33,
Accounting and Financial Reporting for Non-exchange Transactions.
In the government-wide Statement of Net Position, both the governmental and business-type activities
columns (a) are presented on a consolidated basis by column, (b) and are reported on a full accrual,
economic resource basis, which recognizes all long-term assets and receivables as well as long-term
debt and obligations. The Town’s net position is reported in three parts – net investment in capital
assets; restricted net position; and unrestricted net position.
The statement of activities demonstrates the degree to which the direct expenses of a given function or
segments are offset by program revenues. Direct expenses are those that are clearly identifiable with a
specific function or segment. Program revenues include 1) charges to customers or applicants who
purchase, use, or directly benefit from goods, services, or privileges provided by a given function or
segment and 2) grants and contributions that are restricted to meeting the operational or capital
requirements of a particular function or segment. Taxes and other items not properly included among
program revenues are reported instead as general revenues.
Separate financial statements are provided for governmental funds, proprietary funds and fiduciary
funds, even though the latter are excluded from the government-wide financial statements. Major
individual governmental funds and major individual enterprise funds are reported as separate columns
in the fund financial statements.
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 proprietary fund and fiduciary fund financial
statements. Revenues are recorded when earned and expenses are recorded when a liability is
incurred, regardless of the timing of related cash flows. Property taxes, net of estimated refunds, are
recognized as revenues in the year for which they are levied. Grants and similar items are recognized
as revenue as soon as all eligibility requirements imposed by the provider have been met.
Governmental fund financial statements are reported using the current financial resources
measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as
they are both measurable and available. Revenues are considered to be available when they are
collectible within the current period or soon enough thereafter to pay liabilities of the current period.
For this purpose, the government considers revenues to be available if they are collected within 60
days of the end of the current fiscal period. Expenditures generally are recorded when a liability is
incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures
related to compensated absences and claims and judgments, are recorded only when payment is due.
39
STATE OF NEW MEXICO
Town of Taos
Notes to the Financial Statements
June 30, 2015
NOTE 1. Summary of Significant Accounting Policies (continued)
C. Measurement focus, basis of accounting, and financial statement presentation (continued)
Property taxes, franchise taxes, licenses and interest associated with the current fiscal period are all
considered to be susceptible to accrual and so have been recognized as revenues of the current fiscal
period, subject to the availability criterion. Sales and use taxes are classified as derived tax revenues
and are recognized as revenue when the underlying exchange takes place and the revenues are
measurable and available. Grants and similar items are recognized as revenue as soon as all eligibility
requirements imposed by the provider have been met, subject to the availability criterion. Only the
portion of special assessments receivable due within the current fiscal period is considered to be
susceptible to accrual as revenue of the current period. All other revenue items are considered to be
measurable and available only when cash is received by the government.
The Town reports the following major governmental funds:
The General Fund is the government’s primary operating fund. It accounts for all financial
resources of the general government, except those required to be accounted for in another
fund. This fund includes state shared gross receipts tax income fund and state shared gas tax
income funds.
The Airport Construction Capital Projects Funds was created to receive proceeds from
federal and state grants for the purpose of financing improvements to the Taos Municipal
Airport. Authority is Town Council resolution.
The Town reports its proprietary funds as major funds. Proprietary funds include:
The Water and Sewer Fund is used to account for the activities of the Town’s water and
sewer operations.
The Solid Waste Fund accounts for the provision of solid waste services to the residents of
the Town and some residents of Taos Town. All activities necessary to provide such
services are accounted for in this fund, including, but not limited to administration,
operations, maintenance, financing and related debt service, and billing and collection.
The Taos Regional Landfill Fund is used to account for the activities of the Taos Regional
Landfill including debt repayments, closure and post-closure care estimates as well as
operations and administration.
Additionally, the Town reports the following fund type:
The Fiduciary Fund is purely custodial (assets equal liabilities) and does not involve the
measurement of results of operations. This fund accounts for assets held by the Town in a
trustee for the judicial system bonds and recreational events.
As a general rule, the effect of interfund activity has been eliminated from the government-wide
financial statements. Exceptions to this general rule are payments-in-lieu of taxes and other charges
between the government’s enterprise funds and various other functions of the government.
Elimination of these charges would distort the direct costs and program revenues reported in the
Statement of Activities. The General Fund, Lodger’s Tax Fund, Water and Sewer Fund and the Taos
Regional Landfill fund are combined with funds that have identical activities for financial statement
reporting.
40
STATE OF NEW MEXICO
Town of Taos
Notes to the Financial Statements
June 30, 2015
NOTE 1. Summary of Significant Accounting Policies (continued)
C. Measurement focus, basis of accounting, and financial statement presentation (continued)
Program revenues included in the Statement of Activities are derived directly from the program itself
or from parties outside the Town’s taxpayers or citizenry, as a whole; program revenues reduce the
cost of the function to be financed from the Town’s general revenues. Program revenues are
categorized as (a) charges for services, which include revenues collected for fees and use of Town
facilities, etc., (b) program-specific operating grants, which includes revenues received from state and
federal sources such as small cities assistance to be used as specified within each program grant
agreement, and (c) program-specific capital grants and contributions, which include revenues from
state sources to be used for capital projects. Internally dedicated resources are reported as general
revenues rather than as program revenues. Likewise, general revenues include all taxes.
The Town reports all direct expenses by function in the Statement of Activities. Direct expenses are
those that are clearly identifiable with a function. The Town does not currently employ indirect cost
allocation systems. Depreciation expense is specifically identified by function and is included in the
direct expense of each function. Interest on general long-term debt is considered an indirect expense
and is reported separately on the Statement of Activities.
Proprietary funds distinguish operating revenues and expenses from non-operating items. Operating
revenues and expenses generally result from providing services in connection with the fund’s principal
ongoing operations. The principal operating revenue of the Town’s enterprise fund is charges for
services for the Town’s utilities. Operating expenses for enterprise funds include the cost of services,
administrative expenses and depreciation on capital assets. All revenues and expenses not meeting
this definition are reported as non-operating revenues and expenses.
When both restricted and unrestricted resources are available for use, it is the Town’s policy to use
restricted resources first, then unrestricted resources as they are needed.
D. Assets, Deferred Outflows of Resources, Liabilities, Deferred Inflows of Resources and Net Position
or Equity
Deposits and Investments: The Town’s cash and cash equivalents are considered to be cash on hand,
demand deposits and short-term investments with original maturities of three months or less from the
date of acquisition.
State statutes authorize the Town to invest in Certificates of Deposit, obligations of the U.S.
Government, and the State Treasurer’s Investment Pool.
Investments for the Town are reported at fair value. The State Treasurer’s Pool operates in
accordance with appropriate state laws and regulations. The reported value of the pool is the same as
the fair value of the pool shares.
Receivables and Payables: Interfund activity is reported as loans, services provided, reimbursements
or transfers. Loans are reported as interfund receivables and payables as appropriate and are subject to
elimination upon consolidation. Services provided, deemed to be at market or near market rates, are
treated as revenues and expenditures/expenses. Reimbursements are when one fund incurs a cost,
charges the appropriate benefiting fund and reduces its related cost as a reimbursement. All other
interfund transactions are treated as transfers. Transfers between governmental or between proprietary
funds are netted as part of the reconciliation to the government-wide financial statements.
Advances between funds, as reported in the fund financial statements, are offset by a fund balance
reserve account in applicable governmental funds to indicate that they are not available for
appropriation and are not expendable available financial resources in the event they are not received
within 60 days of year end.
41
STATE OF NEW MEXICO
Town of Taos
Notes to the Financial Statements
June 30, 2015
NOTE 1. Summary of Significant Accounting Policies (continued)
D. Assets, Deferred Outflows of Resources, Liabilities, Deferred Inflows of Resources and Net Position
or Equity (continued)
All receivables are reported at their gross value and, where appropriate, are reduced by the estimated
portion that is expected to be uncollectible. The Town estimates the allowance for uncollectible
accounts based off the days delinquent. The Town has estimated all accounts that are greater than 120
days to be uncollectible. In the government-wide and governmental fund financial statements,
delinquent property taxes are recorded when levied. Property taxes are considered to be 100%
collectible.
Property taxes are levied on November 1 based on the assessed value of property as listed on the
previous January 1 and are due in two payments by November 10th and April 10th. Property taxes
uncollected after November 10th and April 10th are considered delinquent and the Town may assess
penalties and interest. The taxes attach as an enforceable lien on property thirty (30) days thereafter,
at which time they become delinquent. Property taxes are collected by Taos Town and remitted
monthly to the Town.
Inventory: The Town’s method of accounting for inventory is the consumption method. Under the
consumption approach, governments report inventories they purchase as an asset and defer recognition
of the expenditures until the period in which the inventories actually are consumed. The cost of
inventory is recorded as expenditures at the time individual inventory items are consumed.
Restricted Assets: Restricted assets consist of those funds expendable for operating purposes but
restricted by donors or other outside agencies as to the specific purpose for which they may be used
and restricted for future debt service payments, capital projects, meter deposits payable, and the
Town’s landfill liability.
Capital Assets: Capital assets, which include property, plant, equipment, and infrastructure assets
(e.g., roads, bridges, sidewalks, and similar items), are reported in the applicable governmental or
business-type activities columns in the government-wide financial statements. Capital assets are
defined by the government as assets with an initial, individual cost of more than $5,000 (amount not
rounded) and an estimated useful life in excess of one year. Such assets are recorded at historical cost
or estimated historical cost if purchased or constructed. Pursuant to the implementation of GASB
Statement No. 34, the historical costs of infrastructure assets (retroactive to 1979) are included as part
of the governmental capital assets reported in the government wide statements. Information
Technology Equipment including software is being capitalized and included in machinery and
equipment in accordance with NMAC 2.20.1.9 C (5). Donated capital assets are recorded at estimated
fair market value at the date of donation.
The costs of normal maintenance and repairs that do not add to the value of the asset or materially
extend assets lives are not capitalized. Library books and periodicals are estimated to have a useful
life of less than one year or are under the capitalization threshold and are expensed when purchased.
Major outlays for capital assets and improvements are capitalized as projects are constructed. Interest
incurred during the construction phase of capital assets of business-type activities is included as part
of the capitalized value of the assets constructed. There was no interest expense capitalized by the
Town during the current fiscal. No interest was included as part of the cost of capital assets under
construction.
42
STATE OF NEW MEXICO
Town of Taos
Notes to the Financial Statements
June 30, 2015
NOTE 1. Summary of Significant Accounting Policies (continued)
D. Assets, Deferred Outflows of Resources, Liabilities, Deferred Inflows of Resources and Net Position
or Equity (continued)
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 Outflows of Resources: In addition to assets, the balance sheet reports a separate section
for deferred outflows of resources. This separate financial statement element, deferred outflows of
resources, represents a use of net position that applies to a future period(s) and so will not be
recognized as an outflow of resources (expenditure) until that time. The Town has two types of items
that qualify for reporting in this category in both the governmental and business-type activities.
Accordingly, the items – Change in assumptions and employer contributions subsequent to
measurement date has been reported as a deferred outflow of resources in the amount of $37,196 and
$919,296, respectively. This amount is reported in the Statement of Net Position. These amounts will
directly reduce the net pension liability in the next fiscal year.
Deferred Inflows of Resources: In addition to liabilities, the balance sheet reports a separate section
for deferred inflows of resources. This separate financial statement element, deferred inflows of
resources, represents an acquisition of net position that applies to a future period(s) and so will not be
recognized as an inflow of resources (revenue) until that time. Revenue must be susceptible to accrual
(measurable and available to finance expenditures of the current fiscal period) to be recognized. If
assets are recognized in connection with a transaction, but those assets are not yet available to finance
expenditures of the current fiscal period, then the assets must be offset by a corresponding liability for
deferred inflows of resources. The Town has two types of deferred inflows which arise under the
modified accrual basis of accounting that qualify for reporting in this category. Accordingly, the
items, unavailable revenue - property taxes and delinquent lodgers tax is reported only in the
governmental funds balance sheet. This amount is deferred and recognized as an inflow of resources
in the period that the amount becomes available. The Town has recorded $169,556 related to property
taxes considered “unavailable” and $170,583 related to delinquent lodger’s tax considered
“unavailable”. In addition, the Town has two types of items present on the Statement of Net Position
for both the governmental and business-type activities, which arise due to the implementation of
GASB 68 and the related net pension liability. Accordingly, the items, net difference between
projected and actual investment earnings on pension plan investments of $2,412,060 and change in
assumptions of $132,310, are reported on the Statement of Net Position. These amounts are reported
as a deferred inflow and amortized into pension expense over the average remaining service life of
employees.
Pensions: For purposes of measuring the net pension liability, deferred outflows of resources and
deferred inflows of resources related to pensions, and pension expense, information about the
fiduciary net position of the Public Employees Retirement Association (P.E.R.A) and additions
to/deductions from P.E.R.A’s fiduciary net position have been determined on the same basis as they
are reported by P.E.R.A, on the economic resources measurement focus and accrual basis of
accounting. For this purpose, benefit payments (including refunds of employee contributions) are
recognized when due and payable in accordance with the benefit terms. Investments are reported at
fair value.
43
STATE OF NEW MEXICO
Town of Taos
Notes to the Financial Statements
June 30, 2015
NOTE 1. Summary of Significant Accounting Policies (continued)
D. Assets, Deferred Outflows of Resources, Liabilities, Deferred Inflows of Resources and Net Position
or Equity (continued)
Compensated Absences: The Town’s employees earn personal leave at a rate of 22 to 27 days per
year based on years of service. Employees can carry over unused personal leave each year with a cap
of 500 hours.
Vested or accumulated vacation leave that is expected to be liquidated with expendable available
financial resources is reported as an expenditure and a fund liability of the governmental or
proprietary fund that will pay it. In prior years, substantially all of the related expenditures have been
liquidated by the general fund. Amounts of vested or accumulated vacation leave that are not
expected to be liquidated with expendable available financial resources are reported in the
government-wide statement of net position.
Long-term Obligations: In the government-wide financial statements, and proprietary fund types in
the fund financial statements, long-term debt and other long-term obligations are reported as liabilities
in the applicable governmental activities, business-type activities, or proprietary fund type statement
of net position. Bond premiums and discounts, are deferred and amortized over the life of the bonds
using the effective interest method or the straight-line method if the difference is minimal. Bonds
payable are reported net of the applicable bond premium or discount. For fund financial reporting,
bond premiums and discounts, as well as issuance costs, are recognized in the period the bonds are
issued. Bond proceeds are reported as another financing source net of the applicable premium or
discount. Issuance costs, even if withheld from the actual net proceeds received, are reported as debt
service expenditures.
Fund Balance Classification Policies and Procedures: For committed fund balance, the Town's
highest level of decision-making authority is the Town Council. The formal action that is required to
be taken to establish a fund balance commitment is the Town Council.
For assigned fund balance, the Town Council or an official or body to which the Town Council
delegates the authority is authorized to assign amounts to a specific purpose. The authorization policy
is in governmental funds other than the general fund, assigned fund balance represents the amount that
is not restricted or committed. This indicates that resources in other governmental funds are, at a
minimum, intended to be used for the purpose of that fund.
For the classification of fund balances, the Town considers restricted or unrestricted amounts to have
been spent when an expenditure is incurred for the purposes for which both restricted and unrestricted
fund balance is available. Also for the classification of fund balances, the Town considers committed,
assigned, or unassigned amounts to have been spent when an expenditure is incurred for purposes for
which amounts in any of those unrestricted fund balance classifications could be used.
Nonspendable Fund Balance: At June 30, 2015, the Town did not have any fund balances in
nonspendable form.
Restricted and Committed Fund Balance: At June 30, 2015, the Town has presented restricted
fund balance on the governmental funds balance sheet in the amount of $666,697 for various general
government operations as restricted by enabling legislation, $61,083 for public safety, $602,364 for
culture and recreation, $687,220 for fire protection, $84,919 for health and welfare, $357,353 for debt
service expenditures, and $2,702,942 for capital projects. The Town has committed fund balance of
the general fund for subsequent year’s expenditures in the amount of $439,443. The details of these
fund balance items are located on the governmental funds balance sheet as detailed on page 26.
44
STATE OF NEW MEXICO
Town of Taos
Notes to the Financial Statements
June 30, 2015
NOTE 1. Summary of Significant Accounting Policies (continued)
D. Assets, Deferred Outflows of Resources, Liabilities, Deferred Inflows of Resources and Net Position
or Equity (continued)
Minimum Fund Balance Policy: The Town’s policy for maintaining a minimum amount of fund
balance for operations is to minimize any sudden and unplanned discontinuity to programs and
operations and for unforeseen contingencies. At a minimum, the budget shall ensure that the Town
holds cash reserves of 1/12th the General Fund expenditures. The amount at June 30, 2015 for the
Town is $818,251.
Net Position: Equity is classified as net position and displayed in three components:
a. Net investment in capital assets: Consists of capital assets, net of accumulated depreciation
and reduced by the outstanding balances of any bonds, mortgages, notes, or other borrowings
that are attributable to the acquisition, construction, or improvement of those assets.
b. Restricted net position: Consist of net position with constraints placed on the use either by
(1) external groups such as creditors, grantors, contributors, or laws or regulation of other
governments; or (2) law through constitutional provisions or enabling legislation.
Descriptions for the related restrictions for net position restricted for “special revenue, debt
service and capital projects” are described on pages 40 and 80-83.
c. Unrestricted net position: Net position that does not meet the definition of “restricted” or
“Net Investment in Capital Assets.”
Interfund Transactions: Quasi-external transactions are accounted for as revenues, expenditures or
expenses. Transactions that constitute reimbursements to a fund from expenditures/expenses initially
made from it that are properly applicable to another fund, are recorded as expenditures/expenses in the
reimbursing fund and as reductions of expenditures/expenses in the fund that is reimbursed.
All other interfund transactions, except quasi-external transactions and reimbursements, are reported
as transfers. Nonrecurring or non-routine permanent transfers of equity are reported as residual equity
transfers. All other interfund transfers are reported as operating transfers.
Estimates: The preparation of financial statements in conformity with accounting principles
generally accepted in the United States of America requires management to make estimates and
assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could
differ from those estimates. Significant estimates in the Town’s financial statements include the
allowance for uncollectible accounts in the joint utility fund, depreciation on capital assets and the
estimate for landfill closure and postclosure costs.
NOTE 2. Stewardship, Compliance and Accountability
Budgetary Information
Annual budgets of the Town are prepared prior to June 1 and must be approved by resolution of the Town
Councilors, and submitted to the Department of Finance and Administration for State approval. Once the
budget has been formally approved, any amendments must also be approved by the Town Council Members
and the Department of Finance and Administration. A separate budget is prepared for each fund. Line items
within each budget may be over-expended; however, it is not legally permissible to over-expend any budget in
total by fund.
Governmental fund budgets are prepared on the GAAP basis, excluding encumbrances, and secure
appropriation of funds for only one year. Carryover funds must be re-appropriated in the budget of the
subsequent fiscal year.
45
STATE OF NEW MEXICO
Town of Taos
Notes to the Financial Statements
June 30, 2015
NOTE 2.Stewardship, Compliance and Accountability (continued)
Budgetary Information (continued)
Proprietary fund budgets are prepared on the GAAP basis, excluding encumbrances, and secure appropriation
of funds for only one year. C arryover funds must be re-appropriated in the budget of the subsequent fiscal year.
The Town does not budget for depreciation expense, only capital outlay.
The budgetary information presented in these financial statements has been properly amended by Town Council
in accordance with the above procedures. These amendments resulted in the following changes:
Excess (deficiency)
of revenues over expenditures
Original Final
Budget Budget
Budgeted Funds:
General Fund $92,211 $ 699,925
Airport Construction $ (756,311) $ (756,311)
Nonmajor Governmental Funds $ (2,517,175) $(3,207,939)
Change in net position
Budgeted Funds:
Water and Sewer $ (2,760,617)$ (2,859,025)
Solid Waste $ (33,426)$ (87,328)
Taos Regional Landfill $67,188 $ (613,013)
The accompanying Statements of Revenues, Expenditures and Changes in Fund Balance –Budget (GAAP
Basis) and Actual and Statements of Revenues, Expenses and Changes in Net Position-Budget (GAAP Basis)
and Actual present comparisons of the legally adopted budget with actual data on a budgetary basis.
NOTE 3.Deposits and Investments
State statutes authorize the investment of Town funds in a wide variety of instruments including certificates of
deposit and other similar obligations, state investment pool, money market accounts, and United States
Government obligations. The Town is not aware of any invested funds that did not meet the State investment
requirements as of June 30, 2015.
Deposits of funds may be made in interest or non-interest bearing checking accounts in one or more banks or
savings and loan associations within the geographical boundaries of the Town. Deposits may be made to the
extent that they are insured by an agency of the United States or collateralized as required by statute. The
financial institution must provide pledged collateral for 50% of the deposit amount in excess of the deposit
insurance.
The rate of interest in non-demand interest-bearing accounts shall be set by the State Board of Finance, but in
no case shall the rate of interest be less than one hundred percent of the asked price on United States treasury
bills of the same maturity on the day of deposit.
Excess funds may be temporarily invested in securities which are issued by the State or by the United States
government, or by their departments or agencies, and which are either direct obligations of the State or the
United States or are backed by the full faith and credit of those governments.
By operation of federal law, beginning January 1, 2013, funds deposited in a noninterest-bearing transaction
account no longer will receive unlimited deposit insurance coverage by the Federal Deposit Insurance
Corporation (FDIC). Beginning January 1, 2013, all of the Town’s accounts at an insured depository
institution, including all noninterest-bearing transaction accounts, will be insured by the FDIC up to the
standard maximum deposit insurance amount of $250,000.
46
STATE OF NEW MEXICO
Town of Taos
Notes to the Financial Statements
June 30, 2015
NOTE 3.Deposits and Investments (continued)
Custodial Credit Risk –Deposits Custodial credit risk is the risk that in the event of a bank failure, the Town’s
deposits may not be returned to it. T he Town does not have a deposit policy for custodial credit risk, other than
following state statutes as set forth in the Public Money Act (Section 6-10-1 to 6-10-63, NMSA 1978). At June
30, 2015, $9,453,689 of the Town’s deposits of $10,203,689 was exposed to custodial credit risk. $7,487,005
was uninsured and collateralized by collateral held by the pledging bank’s trust department, not in the Town’s
name,and $1,966,684 wa s uninsured and uncollateralized.
Amount of deposits 5,448,689$ 4,755,000$ 10,203,689$
FDIC Coverage (500,000) (250,000) (750,000)
Total uninsured public funds 4,948,689 4,505,000 9,453,689
4,948,689 2,538,316 7,487,005
Uninsured and uncollateralized -$ 1,966,684$ 1,966,684$
Collateral requirement
(50% of uninsured funds)2,474,345$ 2,252,500$ 4,726,845$
Pledged Collateral 5,685,636 2,538,316 8,223,952
Over (Under) collateralized 3,211,291$ 285,816$ 3,497,107$
TotalCentinel Bank
Collateralized by securities held by
pledging institutions or by its trust
department or agent in other than the
Town's name
US Bank
The collateral pledged is listed on Schedule IV in this report. The types of collateral allowed are limited to
direct obligations of the United States Government and all bonds issued by any agency, district or political
subdivision of the State of New Mexico.
Reconciliation to the Statement of Net Position:
Cash and cash equivalents per Exhibit A-1 7,122,688$
Restricted cash and cash equivalents per Exhibit A-1 2,970,568
Restricted investments per Exhibit A-1 2,192,869
Agency funds cash per Exhibit E-1 11,176
Certificates of deposits (maturity > 3 months)170,500
Plus outstanding checks 957,296
Less deposits in transit (357,088)
Less U.S. Treasury Money Market Mutual Funds (2,855,953)
Less New Mexico State Treasurer Debt Service (6,517)
Less petty cash (1,850)
Bank balance of deposits 10,203,689$
47
STATE OF NEW MEXICO
Town of Taos
Notes to the Financial Statements
June 30, 2015
NOTE 3.Deposits and Investments (continued)
Investments
The Town invests excess cash in the State Treasurer Local Government Investment Pool. The New Mexico
Local Government Investment Pool’s (LGIP)investments are valued at fair value based on quoted market
prices as of the valuation date. T he LGIP is not SEC registered. T he New M exico State Treasurer is authorized
to invest the short-term investment funds, with the advice and consent of the State Board of Finance, in
accordance with Sections 6-10-10(I) through 6-10-10(P) and Sections 6-10-10.1(A) and (E), NMSA 1978. The
pool does not have unit shares. Per Section 6-10-10. (F), NMSA 1978, at the end of each month all interest
earned is distributed by the State Treasurer to the contributing entities in amounts directly proportionate to the
respective amounts deposited in the fund and the length of time the fund amounts were invested. P articipation
in the LGIP is voluntary.
As of June 30, 2015, the Town’s investment in the New Mexico LGIP wa s rated as AAAm by Standard &
Poor’s.
Additionally, the Town has investments held in U.S. Treasury Money Market Mutual Funds at the Bank of
Albuquerque in connection with New Mexico Finance Authority (NMFA) loans. Also, the Town has
investments which are managed by NMFA, on deposit with the State Treasurer’s office, in NMFA’s name for
the benefit of the Town.
The Town’s investments at June 30, 2015 include the following:
Investments Rated
New Mexico Local Government Investment
Pool AAAm
WAR (R)54.6 day and WAM
(F)77.7 day 4,065,875$
Reserve Contingency Fund Unrated Does not earn interest 5,392
U.S. Treasury Money Market Mutual Funds Aaa **>365 Days 2,855,953
New Mexico State Treasurer Debt Service Aaa **>365 Days 6,517
$ 6,933,737
Weighted Average Maturity Fair Value
** Based Moody’s rating
At June 30, 2015 the Town had $170,500 of certificates of deposit classified as governmental activities
investments at Exhibit A-1. In addition the Town has funds which are managed by NMFA which are
considered restricted cash and cash equivalents and restricted investments. Of the $2,855,953 noted above
$2,192,869 is considered restricted investments as these are invested by NMFA in US Treasury notes and
$663,084 is considered a cash and cash equivalent per Exhibit A-1. F or purposes of cash flows at Exhibit D-3
ending cash is considered to be cash and cash equivalents, restricted cash and cash equivalents, and restricted
investments.
Interest Rate Risk –Investments. The Town does not have a formal policy limiting investment maturities that
wo uld help manage its exposure to fair value losses from increasing interest rates.
Concentration of Credit Risk –Investments. For an investment, concentration of credit risk is when any one
issuer is 5% or more of the investment portfolio of the Town. T he investments in the New Mexico LGIP and
U.S Treasury Money Market Mutual Funds represent 59% and 42%, respectively, of the investment portfolio.
Since the Town only purchases investments with the highest credit rating, the additional concentration is not
viewed to be an additional risk by the Town. The Town’s policy related to concentration of credit risk is to
comply with the state statute as put forth in the Public Money Act (Section 6-10-1 to 6-10-63, NMSA 1978).
48
STATE OF NEW MEXICO
Town of Taos
Notes to the Financial Statements
June 30, 2015
NOTE 4.Receivables
Receivables as of June 30, 2015, are as follows:
Governmental Activities:Other
Airport Governmental
General Construction Funds Total
Property taxes receivable 196,206$ -$ -$ 196,206$
Other taxes receivable:
Gross receipts 1,487,081 - 292,404 1,779,485
Gasoline and motor vehicle - - - -
Franchise taxes 15,102 - - 15,102
Lodger's taxes - - 283,303 283,303
Due from other governments:
Intergovernmental:
Federal grants - 544,207 - 544,207
State grants - 64,311 351,891 416,202
Total receivables 1,698,388$608,518$ 927,598$ 3,234,505$
Receivables for governmental activities are considered to be 100% collectible.
Governmental funds report unavailable revenue in connection with receivables for revenues that are not
considered to be available to liquidate liabilities in the current period. Governmental funds also defer revenue
recognition in connection with resources that have been received but not yet earned. Unavailable revenue
related to property taxes receivable for the Town for the year ended June 30, 2015 was $169,556. In addition,
the Town also deferred revenue related to a lodger’s tax settlement that has not been received within the period
of availability in the amount of $170,583.
Business-type Activities:Water and Solid Taos Regional
Sewer Waste Landfill Total
Customer receivables 995,882$ 213,801$ 160,705$ 1,370,388$
Other receivables:
Gross receipts taxes 83,544 - - 83,544
Total gross receivables 1,079,426 213,801 160,705 1,453,932
Less: allowance for
doubtful accounts 526,967 50,993 20,200 598,160
Total net receivables 552,459$ 162,808$ 140,505$ 855,772$
49
STATE OF NEW MEXICO
Town of Taos
Notes to the Financial Statements
June 30, 2015
NOTE 5.Transfers and Interfund Receivables
Net operating transfers, made to close out funds and to supplement other funding sources, were as follows:
Governmental Activities:
Transfers In Transfers Out Amount
General Fund General Fund 6,767,358$
Recreation Fund General Fund 4,100
Capital/Operating/Maintenance Fund General Fund 318,904
Community Grants General Fund 350,656
Capital Projects General Fund 11,241
2011 PPRF Street Improvement General Fund 135,913
Facilities Improvement General Fund 50,000
1999 Gasoline Tax Acquisition General Fund 52,486
2009 NMFA PPRF Disadvantage
Program-Eco Park 1/4 Cent Municipal Gross Receipts Tax 180,973
2008 Gross Receipts Tax Revenue 1/4 Cent Municipal Gross Receipts Tax 494,625
2007 NMFA Land Purchase 1/4 Cent Municipal Gross Receipts Tax 113,749
Capital Projects 1/4 Cent Municipal Gross Receipts Tax 153,684
Facilities Improvement Capital Projects 338,000
Airport Construction Capital Projects 413,000
Lodger's Tax Lodger's Tax 730,484
Public Transportation Lodger's Tax 178,871
2011 PPRF Street Improvement Municipal Road Gasoline Tax 30,000
1999 Gasoline Tax Acquisition Municipal Road Gasoline Tax 91,583
10,415,627$
50
STATE OF NEW MEXICO
Town of Taos
Notes to the Financial Statements
June 30, 2015
NOTE 5.Transfers and Interfund Receivables (continued)
Business-Type Activities:
Transfers In Transfers Out Amount
Water and Sewer Water and Sewer 4,017,673$
Taos Regional Landfill Solid Waste 118,222
Taos Regional Landfill Taos Regional Landfill 1,236,652
5,372,547$
Internal balances have primarily been recorded when funds overdraw their share of pooled cash. The
composition of interfund balances as of June 30, 2015 is as follows:
Due from Other Funds Due to Other Funds Amount
General Fund Water and Sewer 16,120$
General Fund Solid Waste 5,481
General Fund Taos Regional Landfill 5,155
26,756$
All interfund transactions are short-term and are expected to be repaid within a year.
51
STATE OF NEW MEXICO
Town of Taos
Notes to the Financial Statements
June 30, 2015
NOTE 6.Capital Assets
A summary of capital assets and changes occurring during the year ended June 30, 2015 follows. Land and
construction in progress are not subject to depreciation.
Balance Balance
Governmental activities:June 30, 2014 Additions Deletions June 30, 2015
Capital assets, not depreciated:
Land 6,277,809$ -$ -$ 6,277,809$
Construction in progress 3,413,102 2,598,810 1,591,140 4,420,772
Total capital assets, not depreciated 9,690,911 2,598,810 1,591,140 10,698,581
Capital assets, depreciated:
Land improvements 7,461,945 - - 7,461,945
Buildings and improvements 34,414,256 533,938 406,028 34,542,166
Machinery and equipment 16,580,069 163,032 998,211 15,744,890
Infrastructure 51,263,280 2,917,222 10,136 54,170,366
Total capital assets, depreciated 109,719,550 3,614,192 1,414,375 111,919,367
Less accumulated depreciation:
Land improvements (4,310,173) (267,635) - (4,577,808)
Buildings and improvements (15,718,943) (1,154,698) (87,515) (16,786,126)
Machinery and equipment (13,479,264) (652,741) (922,952) (13,209,053)
Infrastructure (35,928,114) (1,768,667) (1,560) (37,695,221)
Total accumulated depreciation (69,436,494) (3,843,741) (1,012,027) (72,268,208)
Net book value 49,973,967$ 2,369,261$ 1,993,488$ 50,349,740$
During the year ended June 30, 2015, the Town transferred capital assets and related depreciation from the
Communications Fund to Taos County resulting in current year deletions of $1,385,171 and accumulated
depreciation of $982,823 for a loss on disposition of $402,348.
Depreciation expense for the year ended June 30, 2015 was charged to governmental activities as follows:
General government 3,458,981$
Public safety 103,163
Public works 273,853
Culture and recreation 7,744
Health and welfare -
3,843,741$
52
STATE OF NEW MEXICO
Town of Taos
Notes to the Financial Statements
June 30, 2015
NOTE 6. Capital Assets (continued)
Balance Balance
Business-type activities:June 30, 2014 Additions Deletions June 30, 2015
Capital assets, not depreciated:
Land 262,422$ -$ -$ 262,422$
Construction in progress 833,250 400,701 579,053 654,898
Total capital assets, not depreciated 1,095,672 400,701 579,053 917,320
Capital assets, depreciated:
Land improvements 104,895 - - 104,895
Buildings and improvements 4,656,981 - - 4,656,981
Machinery and equipment 8,878,308 31,453 48,393 8,861,368
Infrastructure 32,264,584 1,235,039 - 33,499,623
Total capital assets, depreciated 45,904,768 1,266,492 48,393 47,122,867
Less accumulated depreciation:
Land improvements (90,817) (2,132) - (92,949)
Buildings and improvements (2,434,344) (154,562) - (2,588,906)
Machinery and equipment (6,986,075) (322,655) 48,393 (7,260,337)
Infrastructure (10,427,674) (1,376,010) - (11,803,684)
Total accumulated depreciation (19,938,910) (1,855,359) 48,393 (21,745,876)
Net book value 27,061,530$ (188,166)$ 675,839$ 26,294,311$
Depreciation expense for the year ended June 30, 2015 was charged to business-type activities as follows:
Enterprise activities:
Water and sewer 1,620,928$
Solid waste 57,000
Landfill 177,431
1,855,359$
53
STATE OF NEW MEXICO
Town of Taos
Notes to the Financial Statements
June 30, 2015
NOTE 7. Long-term Debt
Governmental Activities:
During the year ended June 30, 2015, the following changes occurred in the liabilities reported in the
government-wide statement of net position:
Balance Balance Due Within
June 30, 2014 Additions Retirements June 30, 2015 One Year
Revenue Bonds 4,965,000$ -$ 290,000$ 4,675,000$ 300,000$
NMFA Loans 3,246,877 434,994 380,341 3,301,530 459,043
Compensated Absences 544,027 358,703 336,347 566,383 336,347
Total Long-Term Debt 8,755,904$ 793,697$ 1,006,688$ 8,542,913$ 1,095,390$
Revenue Bonds
At June 30, 2015, the Town had one revenue bond outstanding. For the Series 2008 Gross Receipts Tax
Revenue Bonds, the Town pledged revenues from the State-Shared Gross Receipts Tax revenues. The revenue
bonds are as follows:
Original
Date of Due Interest Amount
Description Issue Date Rate of Issue
Series 2008 Gross Receipts Tax 01/30/08 06/01/26 4.00-5.00%6,395,000$
The annual requirements to amortize the revenue bonds as of June 30, 2015, including interest payments,are as
follows:
Fiscal Year Total Debt
Ending June 30,Principal Interest Service
2016 300,000$ 193,025$ 493,025$
2017 315,000 181,025 496,025
2018 385,000 166,775 551,775
2019 400,000 151,375 551,375
2020 415,000 135,375 550,375
2021-2025 2,335,000 118,775 2,453,775
2026 525,000 312,780 837,780
4,675,000$ 1,259,130$ 5,934,130$
54
STATE OF NEW MEXICO
Town of Taos
Notes to the Financial Statements
June 30, 2015
NOTE 7. Long-term Debt (continued)
NMFA Loans
The Town entered into three loan agreements with the New Mexico Finance Authority, wherein the Town
pledged revenue derived from State-Shared Gross Receipts Tax to cover debt service. This revenue is not
subject to intercept agreements. The NMFA loans are as follows:
Date of Due Interest Amount
Description Issue Date Rate of Issue
NMFA Land Purchase Loan 04/13/07 05/01/17 3.32-3.73%954,000$
NMFA Phase I Multi-Phase Eco Park 11/25/09 05/01/25 0.62-3.67%2,213,469
NMFA Revolving Loan Fund Road Projects 11/04/11 05/01/22 1.895%1,694,457
NMFA Fire Truck Pumper Loan 05/08/15 05/01/21 0.92%434,994
The annual requirements to amortize the NMFA loans as of June 30, 2015, including interest payments, are as
follows:
Fiscal Year Total Debt
Ending June 30,Principal Interest Service
2016 459,043$ 77,648$ 536,691$
2017 470,564 69,788 540,352
2018 368,231 60,668 428,899
2019 377,252 53,801 431,053
2020 387,381 45,952 433,333
2021-2025 1,239,059 101,988 1,341,047
3,301,530$ 409,845$ 3,711,375$
Compensated Absences-Employees of the Town are able to accrue a limited amount of vacation and other
compensatory time during the year. D uring fiscal year June 30, 2015, compensated absences increased $22,356
from the prior year accrual. Compensated absences are liquidated by the respective funds in which they are
accrued.
55
STATE OF NEW MEXICO
Town of Taos
Notes to the Financial Statements
June 30, 2015
NOTE 7.Long-term Debt (continued)
Proprietary Funds:
The proprietary funds have incurred various forms of debt which were used for the purposes of constructing,
expanding, repairing and making improvements to its property, plant and equipment. T he following schedule
shows the changes to its various forms of debt during the fiscal year ended June 30, 2015:
Balance Balance Due Within
June 30, 2014 Additions Retirements June 30, 2015 One Year
Revenue Bonds 1,960,600$ -$ 51,000$ 1,909,600$ 54,000$
NMFA and RUS Loans 2,918,978 - 271,330 2,647,648 276,870
Landfill Closure Liability 1,677,021 - - 1,677,021 -
Compensated Absences 68,327 31,578 32,763 67,142 32,763
Total Long-Term Debt 6,624,926$ 31,578$ 355,093$ 6,301,411$ 363,633$
Revenue Bonds
At June 30, 2015, the Town had the following revenue bonds outstanding:
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
The annual requirements to amortize the revenue bonds as of June 30, 2015, including interest payments, are as
follows:
Fiscal Year Total Debt
Ending June 30,Principal Interest Service
2016 54,000$ 99,279$ 153,279$
2017 57,000 96,448 153,448
2018 60,000 93,457 153,457
2019 63,000 90,312 153,312
2020 66,000 87,007 153,007
2021-2025 389,000 378,951 767,951
2026-2030 503,000 265,742 768,742
2031-2035 558,600 108,374 666,974
2036-2038 159,000 - 159,000
1,909,600$ 1,219,570$ 3,129,170$
56
STATE OF NEW MEXICO
Town of Taos
Notes to the Financial Statements
June 30, 2015
NOTE 7. Long-term Debt (continued)
NMFA and USDA Loans
The Town entered into loan agreements with the New Mexico Finance Authority and USDA. These loans are
not subject to intercept agreements. The loans are as follows:
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 Series 2008A Landfill 04/11/08 05/01/18 2.72-3.58% 1,000,000
NMFA/WTB Water Project Fund Loan 09/11/09 06/01/29 0.00% 130,000
NMFA/WTB Water Project Fund Loan 09/11/09 06/01/29 0.00% 600,000
NMED/ARRA Water State Revolving Fund Loan 11/23/09 06/30/30 0.00% 1,200,000
NMFA/WTB Water Project Fund Loan 04/19/13 06/01/33 0.25% 197,390
The annual requirement to amortize the loans as of June 30, 2015, including interest payments, is as follows:
Fiscal Year Total Debt
Ending June 30, Principal Interest Service
2016 276,870$ 34,674$ 311,544$
2017 282,775 29,094 311,869
2018 289,074 23,132 312,206
2019 174,400 16,795 191,195
2020 175,580 13,722 189,302
2021-2025 576,799 46,669 623,468
2026-2030 535,901 37,703 573,604
2031-2035 256,249 27,301 283,550
2032-2040 59,000 14,350 73,350
2041 21,000 1,051 22,051
2,647,648$ 244,491$ 2,892,139$
Compensated Absences- Employees of the Town are able to accrue a limited amount of vacation and other
compensatory time during the year. During fiscal year June 30, 2015, compensated absences decreased $1,185
from the prior year accrual. Compensated absences are liquidated by the respective funds in which they are
accrued.
57
STATE OF NEW MEXICO
Town of Taos
Notes to the Financial Statements
June 30, 2015
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 participates in the New Mexico Self-Insurers’ Fund risk
pool.
The Town has not filed any claims for which the settlement amount exceeded the insurance coverage during the
past three years. H owever, 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. I nsurance
coverage has not changed significantly from prior years and coverage’s are expected to be continued.
At June 30, 2015, no unpaid claims have been filed which exceed the policy limits and to the best of
management’s knowledge and belief all known and unknown claims will be covered by insurance. The Town
is not aware of any major lawsuits that have been filed.
New Mexico Self-Insurers’ Fund has not provided information on an entity by 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
year.
NOTE 9. Other Required Individual Fund Disclosures
Generally accepted accounting principles require disclosures of certain information concerning individual funds
including:
A.Deficit fund balance of individual funds. The following fund had a deficit fund balance as of June 30,
2015.
Civic Center Special Revenue Fund $(2,323)
B.Actual expenditures in excess of amount budgeted at the budgetary authority level. Budgetary legallevel
of control is at the fund level. There were no funds that exceeded approved budgetary authority for the
year ended June 30, 2015.
C.Designated cash appropriations in excess of available balances. There were no funds in which designated
cash appropriations were in excess of available balances.
58
STATE OF NEW MEXICO
Town of Taos
Notes to the Financial Statements
June 30, 2015
NOTE 10.Pension Plan -Public Employees Retirement Association
General Information about the Pension Plan
Plan description. The Public Employees Retirement Fund (PERA Fund) is a cost-sharing, multiple employer
defined benefit pension plan. This fund has six divisions of members, including State General, State
Police/Adult Correction Officer, Municipal General, Municipal Police/Detention Officers, Municipal fire, and
State Legislative Divisions, and offers 24 different types of coverage within the PERA plan. All assets
accumulated may be used to pay benefits, including refunds of member contributions, to any of the plan
members or beneficiaries, as defined by the terms of this plan. Certain coverage plans are only applicable to a
specific division. Eligibility for membership in the PERA Fund is set forth in the Public Employees Retirement
Act (Chapter 10, Article 11, NMSA 1978). Except as provided for in the Volunteer Firefighters Retirement Act
(10-11A-1 to 10-11A-7, NMSA 1978), the Judicial Retirement Act (10-12B-1 to 10-12B-19, NMSA 1978), the
Magistrate Retirement Act (10-12C-1 to 10-12C-18, NMSA 1978), and the Educational Retirement Act
(Chapter 22, Article 11, NMSA 1978), and the provisions of Sections 29-4-1 through 29-4-11, NMSA 1978
governing the State Police Pension Fund, each employee and elected official of every a ffiliated public employer
is required to be a member in the PERA Fund.
PERA issues a publicly available financial report and a comprehensive annual financial report that can be
obtained at http://saonm.org using the Audit Report Search function for agency 366.
Benefits provided.For a description of the benefits provided and recent changes to the benefits see Note 1 in
the PERA audited financial statements for the fiscal year ended June 30, 2015 available at
http://www.pera.state.nm.us/pdf/AuditFinancialStatements/366_Public_Employees_Retirement_Association_2
014.pdf.
Contributions. The contribution requirements of defined benefit plan members and the Town of Taos are
established in state statute under Chapter 10, Article 11, NMSA 1978. The contribution requirements may be
amended by acts of the legislature. For the employer and employee contribution rates in effect for FY14 for the
various PERA coverage options, for both Tier I and Tier II, see the tables available in the note disclosures on
pages 29 through 31 of the PERA FY14 annual audit report at
http://osanm.org/media/audits/366_Public_Employees_Retirement_Association_2014.pdf. The PERA
coverage options that apply to Town of T aos are: Municipal General Division, Municipal Police Division and
Municipal Fire Division. Statutorily required contributions to the pension plan from the Town of Taos were
$919,296 and there were no employer paid member benefits that were “picked up” by the employer for the year
ended June 30, 2015.
Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of
Resources Related to Pensions:The PERA pension liability amounts, net pension liability amounts, and
sensitivity information were based on an annual actuarial valuation performed as of J une 30, 2013. The PERA
pension liability amounts for each division were rolled forward from the valuation date to the Plan year ending
June 30, 2014, using generally accepted actuarial principles. Therefore, the employer’s portion wa s established
as of the measurement date June 30, 2014.
The assets of the PERA fund are held in one trust, but there are six distinct membership groups (municipal
general members, municipal police members, municipal fire members, state general members, state police
members and legislative members) for whom separate contribution rates are determined each year pursuant to
chapter 10, Article 11 NMSA 1978. Therefore, the calculations of the net pension liability, pension expense and
deferred inflows and outflows were preformed separately for each of the membership groups: municipal general
members; municipal police members; municipal fire members; state general members; state police members
and legislative members. Town of Taos’s proportion of the net pension liability for each membership group that
the employer participates in is based on the employer contributing entity’s percentage of that membership
group’s total employer contributions for the fiscal year ended June 30, 2014. Only employer contributions for
the pay period end dates that fell within the period of July 1, 2013 to June 30, 2014 were included in the total
contributions for a specific employer. Regular and any adjustment contributions that applied to FY 2014 are
59
STATE OF NEW MEXICO
Town of Taos
Notes to the Financial Statements
June 30, 2015
NOTE 10.Pension Plan -Public Employees Retirement Association (continued)
General Information about the Pension Plan (continued)
included in the total contribution amounts. In the event that an employer is behind in reporting to PERA its
required contributions, an estimate (receivable) was used to project the unremitted employer contributions. This
allowed for fair and consistent measurement of the contributions with the total population. This methodology
was used to maintain consistent measurement each year in determining the percentages to be allocated among
all the participating employers.
For PERA Fund Municipal General Division, at June 30, 2015, Town of Taos reported a liability of
$4,271,868 for its proportionate share of the net pension liability. At June 30, 2014, Town of Taos’s proportion
was .5476% percent, which was unchanged from its proportion measured as of June 30, 2013, due to the
insignificance of the difference.
For the year ended June 30, 2015, Town of Taos recognized PERA Fund Municipal General Division pension
expense of $372,873. At June 30, 2015, Town of Taos reported PERA Fund Municipal General Division
deferred outflows of resources and deferred inflows or resources related to pensions from the following
sources:
Deferred
Outflows of
Resources
Deferred
Inflows of
Resources
Change in assumptions -$ 2,895$
Net difference between projected and actual earnings
on pension plan investments - 1,671,267
Contributions subsequent to the measurement date 576,431 -
576,431$ 1,674,162$
$576,431 reported as deferred outflows of resources related to pensions resulting from Town of Taos’s
contributions subsequent to the measurement date June 30, 2014 will be recognized as a reduction of the net
pension liability in the year ended June 30, 2016. Other amounts reported as deferred inflows of resources
related to pensions will be recognized in pension expense as follows:
Year ended June 30:
2016 (418,537)$
2017 (418,537)
2018 (418,537)
2019 (418,537)
2020 (14)
Thereafter -
60
STATE OF NEW MEXICO
Town of Taos
Notes to the Financial Statements
June 30, 2015
NOTE 10.Pension Plan -Public Employees Retirement Association (continued)
General Information about the Pension Plan (continued)
For PERA Fund Municipal Police Division, at June 30, 2015, Town of Taos reported a liability of
$1,593,109 for its proportionate shareof the net pension liability. A t June 30, 2014, Town of Taos’s proportion
was 0.4887 percent, which was unchanged from its proportion measured as of June 30, 2013, due to the
insignificance of the difference.
For the year ended June 30, 2015, Town of Taos recognized PERA Fund Municipal Police Division pension
expense of $177,479. At June 30, 2015, Town of Taos reported PERA Fund Municipal Police Division
deferred outflows of resources and deferred inflows or resources related to pensions from the following
sources:
Deferred
Outflows of
Resources
Deferred
Inflows of
Resources
Change in assumptions -$ 129,415$
Net difference between projected and actual earnings
on pension plan investments - 592,388
Contributions subsequent to the measurement date 252,331 -
252,331$ 721,803$
$252,331 reported as deferred outflows of resources related to pensions resulting from Town of Taos’s
contributions subsequent to the measurement date June 30, 2014 will be recognized as a reduction of the net
pension liability in the year ended June 30, 2016. Other amounts reported as deferred inflows of resources
related to pensions will be recognized in pension expense as follows:
Year ended June 30:
2016 (180,290)$
2017 (180,290)
2018 (180,290)
2019 (180,290)
2020 (643)
Thereafter -
61
STATE OF NEW MEXICO
Town of Taos
Notes to the Financial Statements
June 30, 2015
NOTE 10.Pension Plan -Public Employees Retirement Association (continued)
General Information about the Pension Plan (continued)
For PERA Fund Municipal Fire Division, at June 30, 2015, Town of Taos reported a liability of $1,071,464
for its proportionate share of the net pension liability. At June 30, 2014, Town of Taos’s proportion was 0.2567
percent, which was unchanged from its proportion measured as of June 30, 2013, due to the insignificance of
the difference.
For the year ended June 30, 2015, Town of Taos recognized PERA Fund Municipal Fire Division pension
expense of $114,569. At June 30, 2015, Town of T aos reported PERA Fund Municipal Fire Division deferred
outflows of resources and deferred inflows or resources related to pensions from the following sources:
Deferred
Outflows of
Resources
Deferred
Inflows of
Resources
Change in assumptions 37,196$ -$
Net difference between projected and actual earnings
on pension plan investments - 148,405
Contributions subsequent to the measurement date 90,534 -
127,730$ 148,405$
$90,534 reported as deferred outflows of resources related to pensions resulting from Town of Taos’s
contributions subsequent to the measurement date June 30, 2014 will be recognized as a reduction of the net
pension liability in the year ended June 30, 2016. Other amounts reported as deferred inflows of resources
related to pensions will be recognized in pension expense as follows:
Year ended June 30:
2016 (27,849)$
2017 (27,849)
2018 (27,849)
2019 (27,849)
2020 187
Thereafter -
Actuarial assumptions.As described above, the PERA Fund member group pension liabilities and net pension
liabilities are based on actuarial valuations performed as of June 30, 2013 for each of t he membership groups.
Then each PERA Fund member group pension liability was rolled forward from the valuation date to the Plan
year ending June 30, 2014 using generally accepted actuarial principles. There were no significant events or
changes in benefit provisions that required an adjustment to the roll-forward liabilities as of June 30, 2014.
These actuarial methods and assumptions were adopted by the Board for use in the June 30, 2014 actuarial
valuation.
62
STATE OF NEW MEXICO
Town of Taos
Notes to the Financial Statements
June 30, 2015
NOTE 10.Pension Plan -Public Employees Retirement Association (continued)
General Information about the Pension Plan (continued)
Actuarial valuation date June 30, 2013
Actuarial cost method Entry age normal
Amortization method Level percentage of pay
Amortization period Solved for based on statutory rates
Asset valuation method Fair value
Actuarial assumptions:
Investment rate of return 7.75% annual rate, net of intestment expense
Payroll growth 3.50% annual rate
Projected salary increases 3.50 to 14.25% annual rate
Includes inflation at 3.00% annual rate
The long-term expected rate of return on pension plan investments was determined using a statistical analysis in
which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan
investment expense and inflation) are developed for each major asset class. These ranges are combined to
produce the long-term e xpected rate of return by weighting the expected future real rates of return by t he target
asset allocation percentage and by adding expected inflation. The target asset allocation and most recent best
estimates of arithmetic real rates of return for each major asset class are summarized in the following table:
ALL FUNDS - Asset Class Target Allocation
Long-Term Expected
Real Rate of Return
US Equity 21.10%5.00%
International Equity 24.80 5.20
Private Equity 7.00 8.20
Core and Global Fixed Income 26.10 1.85
Fixed Income Plus Sectors 5.00 4.80
Real Estate 5.00 5.30
Real Assets 7.00 5.70
Absolute Return 4.00 4.15
Total 100.00%
.
Discount rate: The discount rate used to measure the total pension liability was 7.75 percent. The projection of
cash flows used to determine the discount rate assumed that future contributions will be made in accordance
with statutory rates. On this basis, the pension plan’s fiduciary net position together with the expected future
contributions are sufficient to provide all projected future benefit payments of current plan members as
determined in accordance with GASBS 67. Therefore, the 7.75% assumed long-term expected rate of return on
pension plan investments was applied to all periods of projected benefit payments to determine the total pension
liability.
Sensitivity of the Employer’s proportionate share of the net pension liability to changes in the discount rate.
The following tables show the sensitivity of the net pension liability to changes in the discount rate. In
particular, the tables present Town of Taos’s net pension liability in each PERA Fund Division that Town of
Taos participates in, under the current single rate assumption, as if it were calculated using a discount rate one
percentage point lower (6.75%) or one percentage point higher (8.75%) than the single discount rate.
63
STATE OF NEW MEXICO
Town of Taos
Notes to the Financial Statements
June 30, 2015
NOTE 10.Pension Plan -Public Employees Retirement Association (continued)
General Information about the Pension Plan (continued)
PERA Fund Municipal General Division
1% Decrease
(6.75%)
Current
Discount Rate
(7.75%)
1% Increase
(8.75%)
Town of Taos's propritionate share of the
net pension liability 8,053,431$ 4,271,868$ 1,350,429$
PERA Fund Municipal Police Division
1% Decrease
(6.75%)
Current
Discount Rate
(7.75%)
1% Increase
(8.75%)
Town of Taos's propritionate share of the
net pension liability 3,038,061$ 1,593,109$ 514,183$
PERA Fund Municipal Fire Division
1% Decrease
(6.75%)
Current
Discount Rate
(7.75%)
1% Increase
(8.75%)
Town of Taos's propritionate share of the
net pension liability 1,513,899$ 1,071,464$ 745,152$
Pension plan fiduciary net position.Detailed information about the pension plan’s fiduciary net position is
available in the separately issued FY14 Restated PERA financial report. The report is available at
http://www.pera.state.nm.us/publications.html.
Payables to the pension plan. At June 30, 2015 there was $1,375 of contributions due and payable to PERA
for the Town.
64
STATE OF NEW MEXICO
Town of Taos
Notes to the Financial Statements
June 30, 2015
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 t he New Mexico Retiree
Health Care Authority (RHCA). The RHCA provides health care insurance and prescription drug benefits to
retired employees of p articipating New Mexico government agencies, their spouses, dependents, and surviving
spouses and dependents. The RHCA Board was established by the Retiree Health Care Act (Chapter 10,
Article 7C, NMSA 1978). The Board is responsible for establishing and amending benefit provisions of the
healthcare plan and is also authorized to designate optional and/or voluntary benefits like dental, vision,
supplemental life insurance, and long-term care policies.
Eligible retirees are: 1) retirees who make contributions to the fund for at least five years prior to retirement and
whose eligible employer during that period of time made contributions as a participant in the RHCA plan on the
person’s behalf unless that person retires before the employer’s RHCA effective date, in which event the time
period required for employee and employer contributions shall become the period of time between the
employer’s effective date and the date of retirement; 2) retirees defined by the Act who retired prior to July 1,
1990; 3) former legislators who served at least two years; and 4) former governing authority members who
served at least four years.
The RHCA issues a publicly available stand-alone financial report that includes financial statements and
required supplementary information for the postemployment healthcare plan. That report and further
information can be obtained by writing to the Retiree Health Care Authority at 4308 Carlisle NE, Suite 104,
Albuquerque, NM 87107.
Funding Policy. 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 mo nthly premium a ccording to a service based subsidy rate schedule for the medical
plus basic life plan plus an additional participation fee of fi ve dollars if the eligible participant retired prior to
the employer’s RHCA effective date or is a former legislator or former governing authority member. Former
legislators and governing authority members are required to pay 100% of the insurance premium to cover their
claims and the administrative expenses of t he plan. T he mo nthly premium rate schedule can be obtained from
the RHCA or viewed on their website at www.nmrhca.state.nm.us.
The employer, employee and retiree contributions are required to be remitted to the RHCA on a monthly basis.
The statutory requirements for the employer and employee contributions can be changed by the New Mexico
State Legislature. E mployers that choose to become participating employers after January 1, 1998, are required
to make contributions to the RHCA fund in the amount determined to be appropriate by the board.
The Retiree Health Care Act (Section 10-7C-15 NMSA 1978) is the statutory authority that establishes the
required contributions of participating employers and their employees. For employees that were members of an
enhanced retirement plan (state police and adult correctional officer member coverage plan 1; municipal police
member coverage plans 3, 4 or 5; municipal fire member coverage plan 3, 4 or 5; municipal detention officer
member coverage plan 1; and members pursuant to the Judicial Retirement Act) during the fiscal year ended
June 30, 2015, the statute required each participating employer to contribute 2.5% of each participating
employee’s annual salary; and each participating employee was required to contribute 1.25% of their salary.
For employees that were not members of an enhanced retirement plan during the fiscal year ended June 30,
2015, the statute required each participating employer to contribute 2.0% of each participating employee’s
annual salary; each participating employee was required to contribute 1.0% of their salary. In addition, pursuant
to Section 10-7C-15(G) NMSA 1978, at the first session of the Legislature following July 1, 2013, the
legislature shall review and adjust the distributions pursuant to Section 7-1-6.1 NMSA 1978 and the employer
and employee contributions to the authority in order to ensure the actuarial soundness of the benefits provided
under the Retiree Health Care Act.
The Town’s contributions to the RHCA for the years ended June 30, 2015, 2014 and 2013 were $114,919,
$118,969, and $123,302,respectively, which equal the required contributions for each year.
65
STATE OF NEW MEXICO
Town of Taos
Notes to the Financial Statements
June 30, 2015
NOTE 12.Contingent Liabilities
The Town is party to various claims and lawsuits arising in the normal course of business. T he Town is insured
through the New Mexico Self Insurers Fund. T he maximum exposure of the Town is not estimable as of June
30, 2015.
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 g rantor agencies,
the purpose of which is to ensure compliance with conditions precedent to the granting of funds. A ny 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 post closure care costs that will be incurred near
or after the date the landfill no longer accepts waste. T he recognition of these landfill closure and post-closure
care costs is based on the amount of the landfill used during the year. T he estimated liability for landfill closure
and post closure care costs is $1,677,021 as of June 30, 2015, which is based on 40 percent usage (filled) of the
landfill. The estimate has remained unchanged from the prior year as no significant construction occurred or
changes to the site conditions. The estimated total current cost of the landfill closure and post closure care is
based on the amount that would be paid if all equipment, facilities, and services required to close, monitor, and
maintain the landfill were acquired as of June 30, 2015. However, the actual cost of closure and post closure
care may be higher due to inflation, changes in technology, or changes in landfill laws and regulations.
In addition, the Town is required by State and Federal laws and regulations to make annual contributions to
finance closure and postclosure care. T he Town is in compliance with these requirements, and at June 30, 2015
cash of $875,165 and investments of $74,500 is part of the pooled funds held by the Town and is presented as
restricted cash on the statement of net position.
NOTE 15.Construction and Other Significant Commitments
The Town has committed to pay for several construction contracts that were not completed at June 30, 2015 in
the amount of $5,130,684 as follows:
Project Description Contractor
Pot Hole Repair 41,487$ September 2015 Silva's Excavation Inc.
Airport Runway Construction Phase I 4,072,520 October 2015 Northern Mountain Constructors, Inc.
Airport Runway Design Phase 1, 2 & 3 135,876 October 2015 Armstrong Consultants Inc.
Weimer Water Improvements 311,843 October 2015 Garcia Underground
Weimer Water Improvements - Engineering 217,158 October 2015 Souder, Miller & Associates
Landfill Construction Engineering 52,471 October 2015 Souder, Miller & Associates
Camino de Medio Engineering 208,914 March 2016 Souder, Miller & Associates
Air Filtration Units 48,883 August 2015 Air Technology Solutions of Delaware LLC.
Hydrological Services 41,532 December 2015 Daniel B. Stephens & Associates
5,130,684$
Contract
Amount
Remaining
Estimated Date
of Completion
66
STATE OF NEW MEXICO
Town of Taos
Notes to the Financial Statements
June 30, 2015
NOTE 16.Subsequent Events
The date to which events occurring after June 30, 2015, the date of the most recent statement of net position,
have been evaluated for possible adjustment to the financial statements or disclosures is November 27, 2015,
which is the date on which the financial statements were issued.
The Town has entered into a Loan with New Mexico Finance Authority for the Regional Landfill in the amount
of $1,376,046. Closing date was August 28, 2015, with an interest rate of 0.38% to 2.24%. This loan will
mature June 1, 2025.
NOTE 17.Concentrations
The Town depends on financial resources flowing from, or associated with, both the Federal Government and
the State of New Mexico. B ecause of t his dependency, the Town is subject to changes in the specific flows of
intergovernmental revenues based on modifications to Federal and State laws and Federal and State
appropriations.
NOTE 18.Restricted Net Position
The government-wide statement of n et position reports $4,944,808 of restricted net position for governmental
activities, all of the special revenue funds which are restricted by enabling legislation. S ee pages 40 and 80-83
for descriptions of the related restrictions for special revenue, debt service and capital projects funds. In
addition the government-wide statement of net position reports $4,089,474 of restricted net position for
business-type activities. S ee page 40 for descriptions of the related restrictions for meter deposits, debt service
and landfill obligations.
NOTE 19.Utility Revenues Pledged
The Town of Taos has pledged future revenues from the water and sewer system, net of operation and
maintenance expenses, to repay $635,600 in Series 1993A Water & Sewer Revenue Bonds, issued in 1993.
The bonds are payable solely from utility customer net revenues and are payable through March 2033. The
pledged revenues shall be in an amount sufficient to pay principal, premium, if any, interest and other amounts
due under the bond agreement, including an amount sufficient to cure any deficiencies in the debt service
account or the bond agreement reserve account, to the USDA or the Trustee, as its assignee, to be deposited in
the debt service reserve account or the bond agreement reserve account held by the trustee, payable from and
constituting a lien upon the pledged revenues. The total principal and interest remaining to be paid on the
bonds is $452,600 and $279,101, respectively. Principal and interest paid for the current year and total
customer net revenues were $40,246 and $3,331,297, respectively.
The Town of Taos has pledged future revenues from the water and sewer system, net of operation and
maintenance expenses, to repay $123,000 in Series 1993B Water & Sewer Revenue Bonds, issued in 1993.
The bonds are payable solely from utility customer net revenues and are payable through March 2033. The
pledged revenues shall be in an amount sufficient to pay principal, premium, if any, interest and other amounts
due under the bond agreement, including an amount sufficient to cure any deficiencies in the debt service
account or the bond agreement reserve account, to the USDA or the Trustee, as its assignee, to be deposited in
the debt service reserve account or the bond agreement reserve account held by the trustee, payable from and
constituting a lien upon the pledged revenues. The total principal and interest remaining to be paid on the
bonds is $90,000 and $57,420, respectively. P rincipal and interest paid for the current year and total customer
net revenues were $8,115 and $3,331,297, respectively.
67
STATE OF NEW MEXICO
Town of Taos
Notes to the Financial Statements
June 30, 2015
NOTE 19.Utility Revenues Pledged (continued)
The Town of Taos has pledged future revenues from the water and sewer system, net of operation and
maintenance expenses, to repay $1,315,000 in Series 1995A Water & Sewer Revenue Bonds, issued in 1995.
The bonds are payable solely from utility customer net revenues and are payable through December 2035. T he
pledged revenues shall be in an amount sufficient to pay principal, premium, if any, interest and other amounts
due under the bond agreement, including an amount sufficient to cure any deficiencies in the debt service
account or the bond agreement reserve account, to the USDA or the Trustee, as its assignee, to be deposited in
the debt service reserve account or the bond agreement reserve account held by the trustee, payable from and
constituting a lien upon the pledged revenues. The total principal and interest remaining to be paid on the
bonds is $989,000 and $637,349, respectively. Principal and interest paid for the current year and total
customer net revenues were $78,019 and $3,331,297, respectively.
The Town of Taos has pledged future revenues from the water and sewer system, net of operation and
maintenance expenses, to repay $475,000 in Series 1998A Water & Sewer Revenue Bonds, issued in 1999.
The bonds are payable solely from utility customer net revenues and are payable through January 2038. The
pledged revenues shall be in an amount sufficient to pay principal, premium, if any, interest and other amounts
due under the bond agreement, including an amount sufficient to cure any deficiencies in the debt service
account or the bond agreement reserve account, to the USDA or the Trustee, as its assignee, to be deposited in
the debt service reserve account or the bond agreement reserve account held by the trustee, payable from and
constituting a lien upon the pledged revenues. The total principal and interest remaining to be paid on the
bonds is $378,000 and $245,700, respectively. Principal and interest paid for the current year and total
customer net revenues were $26,715 and $3,331,297, respectively.
The Town of Taos has pledged future revenues from the water and sewer system, net of operation and
maintenance expenses, to repay $250,000 in RUS Series 2000A Water & Sewer Loan, issued in 2000. The
loans are payable solely from utility customer net revenues and are payable through December 2040. The
pledged revenues shall be in an amount sufficient to pay principal, premium, if any, interest and other amounts
due under the loan agreement, including an amount sufficient to cure any deficiencies in the debt service
account or the loan agreement reserve account, to the USDA or the Trustee, as its assignee, to be deposited in
the debt service reserve account or the loan agreement reserve account held by the trustee, payable from and
constituting a lien upon the pledged revenues. T he total principal and interest remaining to be paid on the loan
is $211,000 and $174,800, respectively. P rincipal and interest paid for the current year and total customer net
revenues were $14,750 and $3,331,297, respectively.
The Town of Taos has pledged future revenues from the water and sewer system, net of operation and
maintenance expenses, to repay $950,391 in NMFA Series 2001A Water & Sewer Loan, issued in 2001. T he
loans are payable solely from utility customer net revenues and are payable through May 2021. The pledged
revenues shall be in an amount sufficient to pay principal, premium, if any, interest and other amounts due
under the loan agreement, including an amount sufficient to cure any deficiencies in the debt service account or
the loan agreement reserve account, to the NMFA or the Trustee, as its assignee, to be deposited in the debt
service reserve account or the loan agreement reserve account held by the trustee, payable from and constituting
a lien upon the pledged revenues. T he total principal and interest remaining to be paid on the loan is $311,345
and $45,394, respectively. P rincipal and interest paid for the current year and total customer net revenues were
$68,575 and $3,331,297, respectively.
The Town of Taos has pledged future revenues from the Taos Regional Landfill system, net of operation and
maintenance expenses, to repay $1,000,000 in NMFA Series 2008A Landfill Loan, issued in 2008. 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 agreement, including an amount sufficient to cure any deficiencies in the debt service account or
the loan agreement reserve account, to the NMFA or the Trustee, as its assignee, to be deposited in the debt
service reserve account or the loan agreement reserve account held by the trustee, payable from and constituting
a lien upon the pledged revenues. T he total principal and interest remaining to be paid on the loan is $345,259
and $20,037, respectively. P rincipal and interest paid for the current year and total customer net revenues were
$121,195 and $1,197,008, respectively.
68
STATE OF NEW MEXICO
Town of Taos
Notes to the Financial Statements
June 30, 2015
NOTE 19.Utility Revenues Pledged (continued)
The Town of Taos has pledged future revenues from the Taos Wastewater project, net of operation and
maintenance expenses, to repay $130,000 in NMFA/WTB Water Project, issued in 2009. T he loans are payable
solely from utility customer net revenues and are payable through June 2029. T he pledged revenues shall be in
an amount sufficient to pay principal, premium, if any, interest and other amounts due under the loan
agreement, including an amount sufficient to cure any deficiencies in the debt service account or the loan
agreement reserve account, to the NMFA or the Trustee, as its assignee, to be deposited in the debt service
reserve account or the loan agreement reserve account held by the trustee, payable from and constituting a lien
upon the pledged revenues. T he total principal remaining to be paid on the loan is $92,941 with no interest due.
Principal for the current year and total customer net revenues were $6,515 and $3,331,297, respectively.
The Town of Taos has pledged future revenues from the Taos Wastewater project, net of operation and
maintenance expenses, to repay $600,000 in NMFA/WTB Water Project, issued in 2009. T he loans are payable
solely from utility customer net revenues and are payable through June 2029. T he pledged revenues shall be in
an amount sufficient to pay principal, premium, if any, interest and other amounts due under the loan
agreement, including an amount sufficient to cure any deficiencies in the debt service account or the loan
agreement reserve account, to the NMFA or the Trustee, as its assignee, to be deposited in the debt service
reserve account or the loan agreement reserve account held by the trustee, payable from and constituting a lien
upon the pledged revenues. The total principal remaining to be paid on the loan is $428,961 with no interest
due. P rincipal for the current year and total customer net revenues were $30,069 and $$3,331,297, respectively.
The Town of Taos has pledged future revenues from the Taos Wastewater project, net of operation and
maintenance expenses, to repay $1,200,000 in NMED Clean Water State Revolving Fund Project, issued in
2009. T he loans are payable solely from utility customer net revenues and are payable through June 2030. T he
pledged revenues shall be in an amount sufficient to pay principal, premium, if any, interest and other amounts
due under the loan agreement, including an amount sufficient to cure any deficiencies in the debt service
account or the loan agreement reserve account, to the NMED or the Trustee, as its assignee, to be deposited in
the debt service reserve account or the loan agreement reserve account held by the trustee, payable from and
constituting a lien upon the pledged revenues. The total principal remaining to be paid on the loan is $1,080,000
with no interest due. Principal for the current year and total customer net revenues were $60,000 and
$3,331,297, respectively.
The Town of Taos has pledged future revenues from the Taos Wastewater project, net of operation and
maintenance expenses, to repay $197,390 in NMFA/WTB Water Project, issued in 2013. T he loans are payable
solely from utility customer net revenues and are payable through June 2033. T he pledged revenues shall be in
an amount sufficient to pay principal, premium, if any, interest and other amounts due under the loan
agreement, including an amount sufficient to cure any deficiencies in the debt service account or the loan
agreement reserve account, to the NMFA or the Trustee, as its assignee, to be deposited in the debt service
reserve account or the loan agreement reserve account held by the trustee, payable from and constituting a lien
upon the pledged revenues. The total principal and interest remaining to be paid on the loan is $178,143 and
$4,261, respectively. Principal for the current year and total customer net revenues were $10,134 and
$3,331,297, respectively.
NOTE 20.Net Position Restatement
The Town has a prior period adjustment of ($7,931,713) and ($846,981) for governmental activities and
business-type, respectively which was required for implementation of GASB Statement No.68. The
adjustment reflects a beginning net pension liability of ($9,705,440) and a beginning of deferred outflow of
resources-employer contributions subsequent to the measurement date of $926,746.
69
STATE OF NEW MEXICO
Town of Taos
Notes to the Financial Statements
June 30, 2015
NOTE 21.Subsequent Pronouncements
In February 2015, GASB Statement No. 72 Fair Value Measurement and Application, was issued. Effective
Date: The provisions of this Statement are effective for financial statements for periods beginning after June 15,
2015.Earlier application is encouraged. The Town will implement this standard during the fiscal year ended
June 30, 2016. The Town is still evaluating how this pronouncement will affect the financial statements.
In June 2015, GASB Statement No. 73 Accounting and Financial Reporting for Pensions and Related Assets
That Are Not within the Scope of GASB Statement 68, and Amendments to Certain Provisions of GASB
Statements 67 and 68,wa s issued. Effective Date: T he provisions of this Statement are effective for financial
statements for periods beginning after June 15, 2016. Earlier application is encouraged. The Town is still
evaluating how this pronouncement will affect the Town.
In June 2015, GASB Statement No. 74 Financial Reporting for Postemployment Benefit Plans Other Than
Pension Plans,was issued. Effective Date: The provisions of this Statement are effective for fiscal years
beginning after June 15, 2016. This pronouncement will not effect the Town’s financial statements.
In June 2015, GASB Statement No. 75 Accounting and Financial Reporting for Postemployment Benefits Other
Than Pensions,was issued. Effective Date: The provisions of this Statement are effective for fiscal years
beginning after June 15, 2017. T he standard will be implemented during the fiscal year ended June 30, 2018.
The Town expects this pronouncement to have a material effect on the financial statements.
In June 2015, GASB Statement No. 76 The Hierarchy of Generally Accepted Accounting Principles for State
and Local Governments, wa s issued. Effective Date: The provisions of this Statement are effective for financial
statements for periods beginning after June 15, 2015. Earlier application is encouraged. The Town will
implement this standard during the fiscal year ended June 30, 2016. The Town is still evaluating how this
pronouncement will affect the Town.
In August 2015, GASB Statement No. 77 Tax Abatement Disclosures, was issued. Effective Date: The
provisions of this Statement are effective for financial statements for periods beginning after December 15,
2015. Earlier application is encouraged. The Town will implement this standard during the fiscal year ended
June 30, 2017. The Town is still evaluating how this pronouncement will effect the financial statements.
70
REQUIRED SUPPLEMENTARY INFORMATION
71
STATE OF NEW MEXICO Schedule I
Town of Taos Page 1 of 3
Schedule of the Town's Proportionate Share of the Net Pension Liability of PERA Fund Municipal General Division
Public Employees Retirement Association (PERA) Plan
Last 10 Fiscal Years*
2015
Town of Taos's proportion of the net pension liability 0.5476%
Town of Taos's proportionate share of the net pension liability 4,271,868$
Town of Taos's covered-employee payroll 4,457,324$
Town of Taos's proportionate share of the net pension liability as a percentage of its
covered-employee payroll 95.84%
Plan fiduciary net position as a percentage of the total pension liability 81.29%
*The amounts presented were determined as of June 30.This schedule is presented to illustrate the requirement to show
information for 10 years.However,until a full 10-year trend is compiled,Town of Taos will present information for
those years for which information is available.
See independent auditors' report
See notes to required supplementary information
72
STATE OF NEW MEXICO Schedule I
Town of Taos Page 2 of 3
Schedule of the Town's Proportionate Share of the Net Pension Liability of PERA Fund Municipal Police Division
Public Employees Retirement Association (PERA) Plan
Last 10 Fiscal Years*
2015
Town of Taos's proportion of the net pension liability 0.4887%
Town of Taos's proportionate share of the net pension liability 1,593,109$
Town of Taos's covered-employee payroll 937,534$
Town of Taos's proportionate share of the net pension liability as a percentage of its
covered-employee payroll 169.93%
Plan fiduciary net position as a percentage of the total pension liability 81.29%
*The amounts presented were determined as of June 30.This schedule is presented to illustrate the requirement to show
information for 10 years.However,until a full 10-year trend is compiled,Town of Taos will present information for
those years for which information is available.
See independent auditors' report
See notes to required supplementary information
73
STATE OF NEW MEXICO Schedule I
Town of Taos Page 3 of 3
Schedule of the Town's Proportionate Share of the Net Pension Liability of PERA Fund Municipal Fire Division
Public Employees Retirement Association (PERA) Plan
Last 10 Fiscal Years*
2015
Town of Taos's proportion of the net pension liability 0.2567%
Town of Taos's proportionate share of the net pension liability 1,071,464$
Town of Taos's covered-employee payroll 285,100$
Town of Taos's proportionate share of the net pension liability as a percentage of its
covered-employee payroll 375.82%
Plan fiduciary net position as a percentage of the total pension liability 81.29%
*The amounts presented were determined as of June 30.This schedule is presented to illustrate the requirement to show
information for 10 years.However,until a full 10-year trend is compiled,Town of Taos will present information for
those years for which information is available.
See independent auditors' report
See notes to required supplementary information
74
STATE OF NEW MEXICO Schedule II
Town of Taos Page 1 of 3
Schedule of Employer Contributions
Public Employees Retirement Association (PERA) Plan
PERA Municipal General Division
Last 10 Fiscal Years*
2015
Contractually required contributions 576,431$
Contributions in relation to the contractually required contribution (576,431)
Contribution deficiency (excess)-$
Town of Taos's covered-employee payroll 4,513,593$
Contributions as a percentage of covered-employee payroll 12.8%
*The amounts presented were determined as of June 30.This schedule is presented to illustrate the requirement to show
information for 10 years.However,until a full 10-year trend is compiled,Town of Taos will present information for
those years for which information is available.
See independent auditors' report
See notes to required supplementary information
75
STATE OF NEW MEXICO Schedule II
Town of Taos Page 2 of 3
Schedule of Employer Contributions
Public Employees Retirement Association (PERA) Plan
PERA Municipal Police Division
Last 10 Fiscal Years*
2015
Contractually required contributions 252,331$
Contributions in relation to the contractually required contribution (252,331)
Contribution deficiency (excess)-$
Town of Taos's covered-employee payroll 949,833$
Contributions as a percentage of covered-employee payroll 26.6%
*The amounts presented were determined as of June 30.This schedule is presented to illustrate the requirement to show
information for 10 years.However,until a full 10-year trend is compiled,Town of Taos will present information for
those years for which information is available.
See independent auditors' report
See notes to required supplementary information
76
STATE OF NEW MEXICO Schedule II
Town of Taos Page 3 of 3
Schedule of Employer Contributions
Public Employees Retirement Association (PERA) Plan
PERA Municipal Fire Division
Last 10 Fiscal Years*
2015
Contractually required contributions 90,534$
Contributions in relation to the contractually required contribution (90,534)
Contribution deficiency (excess)-$
Town of Taos's covered-employee payroll 315,617$
Contributions as a percentage of covered-employee payroll 28.7%
*The amounts presented were determined as of June 30.This schedule is presented to illustrate the requirement to show
information for 10 years.However,until a full 10-year trend is compiled,Town of Taos will present information for
those years for which information is available.
See independent auditors' report
See notes to required supplementary information
77
STATE OF NEW MEXICO
Town of Taos
Notes to Required Supplementary Information
June 30, 2015
See independent auditors’ report
Changes of benefit terms. The PERA Fund COLA and retirement eligibility benefits changes in recent years are
described in Note 1 of the PERA FY14 audit available at
http://www.pera.state.nm.us/pdf/AuditFinancialStatements/366_Public_Employees_Retirement_Association_2014.p
df.
Changes of assumptions. The Public Employees Retirement Association (PERA) of New Mexico Annual Actuarial
Valuation as of June 30, 2014 report is available at
http://www.pera.state.nm.us/pdf/Investments/RetirementFundValuationReports/6-30-
2014%20PERA%20Valuation%20Report_FINAL.pdf.
The summary of Key Findings for the PERA Fund (on page 2 of the report) states “based on a recent experience
study for the five-year period ending June 30, 2013, the economic and demographic assumptions were updated for
this valuation. The changes in assumptions resulted in a decrease of $30.8 million to Fund liabilities and an increase
of 0.13% to the funded ratio. For details about changes in the actuarial assumptions, see Appendix B on page 60 of
the report.
78
SUPPLEMENTARY INFORMATION
79
STATE OF NEW MEXICO
Town of Taos
Nonmajor Governmental Fund Descriptions
June 30, 2015
Special Revenue Funds
Fire Protection
To account for the operations and maintenance of the fire department. Financing is provided by an allotment from the State of New
Mexico Fire Marshall’s Office. State Statute Section 59A-53-2, NMSA, 1978 compilation, requires the allotment be used only to
operate fire departments.
Recreation
To account for establishing and maintaining recreational programs in the Town. F inancing is provided by program r evenue 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 the Town. Revenues received are pursuant 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 e nforcement planning and training; (3) complying with match or contribution requirements of federal funds for criminal
justice programs; (4) no more than fifty percent (50%) of the replacement salaries of municipal and county law enforcement personnel
while attending a specified advanced law 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.
80
STATE OF NEW MEXICO
Town of Taos
Nonmajor Governmental Fund Descriptions
June 30, 2015
Special Revenue Funds (continued)
Community Grants
To account for various small grants for various community purposes. Each grant is authorized by the granting agency. The fund is
authorized by Town Council resolution.
Municipal Road Gasoline Tax
To account for a 1 cent gasoline tax that is used for repairing and construction of r oads. 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 Gross Receipts Tax Revenue Bonds. A fter required debt service transfers have been made, the remaining income of t his
fund is restricted for capital improvement purposes. NMSA 1978 Chapter 7, Article 20E-1 to 22.
Historical District
To account for all associated parking meter and associated revenues and costs, including leases, meter maintenance, personnel, and
historic district promotion.Authority is Town Council resolution.
Communications
To account for money collected by the Town from three other government entities to share centralized dispatch services throughout
the County of Taos. Funding is authorized by a joint powers agreement as authorized by Sections 11-1-1 through 11-1-7 NMSA
1978.
Confidential Informant
A structured accounting system, operated within the department, providing officers with investigative expense monies to support
operations related to the detection, investigation or enforcement of the laws related to crime. This includes, but is not limited to: paying
documented confidential informants and confidential sources; purchasing contraband as evidence; and paying expenses for surveillance
activities and equipment.Authority is Town Council resolution.
Capital/Maintenance/Operating Fund
This fund was created to receive additional amounts that are paid for one-time costs by the Town of Taos. Authority is Town Council
resolution.
81
STATE OF NEW MEXICO
Town of Taos
Nonmajor Governmental Fund Descriptions
June 30, 2015
Debt Service Funds
2009 NMFA PPRF Disadvantage Program-Eco Park
This fund was created for the purpose of constructing phase I of a multi-phased recreation park.The repayment under the loan
agreement is solely from the first and second increments of municipal infrastructure gross receipts tax pursuant to section 7-19D-11,
NMSA 1978.
2008 Gross Receipts Tax Revenue Bond Retirement
This fund was created for the purpose of repayment of the bond issue from the 1.225% distribution of State Shared Gross Receipts Tax
revenues. Authority is Town Council resolution.
NMFA Debt Service Reserve Eco Park
This fund was created to be credited with transfers from the General Fund for the purpose of accumulating monies for payment of
principal and interest on the debt for repayment of Eco Park. 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.
2011 PPRF Street Improvement
This fund was created for the purpose of accumulating monies for the payment of principal and interest on Series PPRF Street
Improvement Revenue Bonds. Authority is Town Council resolution.
Camino Rael Building
This fund was created for the purpose of accumulating monies for the payment of principal on an interest free loan from the United
States Forest Service. Authority is Town Council Resolution.
2011 PPRF Street Improvement Reserve
This fund was created for the purpose of accumulating monies for the payment of principal and interest on Series PPRF Street
Improvement Revenue Bonds. Authority is Town Council resolution.
82
STATE OF NEW MEXICO
Town of Taos
Nonmajor Governmental Fund Descriptions
June 30, 2015
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.
Capital Projects
This fund was created to accumulate revenue and other financing sources for the purpose of financing general-purpose capital projects.
Authority is Town Council resolution.
Vehicle Replacement
This fund was created to receive transfers from other funds for the purpose of purchasing vehicles for the Town of Taos. Authority is
Town Council resolution.
1994 Gross Receipts Tax Revenue Bond Acquisition
This fund was created to receive the 1994 Gross Receipts Tax Bond proceeds for the purpose of construction of affordable housing.
Authority is Town Council resolution.
1999 Gasoline Tax Acquisition
This fund was created to receive bond proceeds and to account for the capital outlay associated with the bond issue. Authority is the
Town Council resolution.
83
Fire Protection Recreation Lodger's Tax
Local
Government
Correction
Assets
Cash and cash equivalents 433,962$ 6,976$ 251,447$ 72,940$
Investments 253,258 7,000 300,000 -
Receivables:
Other taxes - - 283,303 -
Due from other governments - - - -
Total assets 687,220$ 13,976$ 834,750$ 72,940$
Liabilities
Accounts payable -$ 1,987$ 68,094$ 13,800$
Accrued payroll - - 5,698 -
Deposits held in trust for others - - - -
Total liabilities - 1,987 73,792 13,800
Deferred inflows of resources
Unavailable revenue- property taxes - - - -
Unavailable revenue- delinquent lodgers tax - - 170,583 -
Total deferred inflows of resources - - 170,583 -
Fund balances
Spendable
Restricted for:
General government - - - -
Public safety - - - 59,140
Culture and recreation - 11,989 590,375 -
Fire protection 687,220 - - -
Health and welfare - - - -
Debt service expenditures - - - -
Capital projects - - - -
Unassigned - - - -
Total fund balances 687,220 11,989 590,375 59,140
Total liabilities, deferred inflows of resources,
and fund balances 687,220$ 13,976$ 834,750$ 72,940$
Special Revenue
Nonmajor Governmental Funds
Town of Taos
STATE OF NEW MEXICO
June 30, 2015
Combining Balance Sheet
The accompanying notes are an integral part of these financial statements
84
Statement A-1
Page 1 of 3
Law
Enforcement
Protection Civic Center
Domestic
Violence Shelter
Public
Transportation
Community
Grants
Municipal Road
Gasoline Tax
7,196$ 780$ 1$ 46,393$ 91,171$ -$
- 2,000 - - 150,000 -
- - - - - -
265 - 10,411 41,847 64,656 -
7,461$ 2,780$ 10,412$ 88,240$ 305,827$ -$
5,518$ -$ 10,411$ 3,322$ 89,085$ -$
- - - - - -
- 5,103 - - - -
5,518 5,103 10,411 3,322 89,085 -
- - - - - -
- - - - - -
- - - - - -
- - - - 216,742 -
1,943 - - - - -
- - - - - -
- - - - - -
- - 1 84,918 - -
- - - - - -
- - - - - -
- (2,323) - - - -
1,943 (2,323) 1 84,918 216,742 -
7,461$ 2,780$ 10,412$ 88,240$ 305,827$ -$
Special Revenue
85
1/4 Cent
Municipal Gross
Receipts Tax
Historical
District Communications
Confidential
Informant
Assets
Cash and cash equivalents 17,948$ 64,537$ 11,585$ 9,828$
Investments - - - -
Receivables:
Other taxes 167,088 - - -
Due from other governments - - - -
Total assets 185,036$ 64,537$ 11,585$ 9,828$
Liabilities
Accounts payable -$ -$ 385$ -$
Accrued payroll - 2,208 - -
Deposits held in trust for others - - - -
Total liabilities - 2,208 385 -
Deferred inflows of resources
Unavailable revenue- property taxes - - - -
Unavailable revenue- delinquent lodgers tax - - - -
Total deferred inflows of resources - - - -
Fund balances
Spendable
Restricted for:
General government 185,036 62,329 11,200 9,828
Public safety - - - -
Culture and recreation - - - -
Fire protection - - - -
Health and welfare - - - -
Debt service expenditures - - - -
Capital projects - - - -
Unassigned - - - -
Total fund balances 185,036 62,329 11,200 9,828
Total liabilities, deferred inflows of resources,
and fund balances 185,036$ 64,537$ 11,585$ 9,828$
Nonmajor Governmental Funds
Town of Taos
STATE OF NEW MEXICO
June 30, 2015
Combining Balance Sheet
The accompanying notes are an integral part of these financial statements
Special Revenue
86
Statement A-1
Page 2 of 3
Special Revenue
Capital/Maintenance/
Operating Fund
2009 NMFA
PPRF
Disadvantage
Program- Eco
Park
2008 Gross
Receipts Tax
Revenue Bond
Retirement
NMFA Debt
Service
Reserve Eco
Park
2007 NMFA
Land
Purchase
2011 PPRF
Street
Improvement
197,117$ 219$ 1$ 184,741$ 53$ 1,614$
- - - - - -
- - - - - -
- - - - - -
197,117$ 219$ 1$ 184,741$ 53$ 1,614$
15,555$ -$ -$ -$ -$ -$
- - - - - -
- - - - - -
15,555 - - - - -
- - - - - -
- - - - - -
- - - - - -
181,562 - - - - -
- - - - - -
- - - - - -
- - - - - -
- - - - - -
- 219 1 184,741 53 1,614
- - - - - -
- - - - - -
181,562 219 1 184,741 53 1,614
197,117$ 219$ 1$ 184,741$ 53$ 1,614$
Debt Service
87
Camino Rael
Building
2011 PPRF
Street
Improvement
Reserve
Facilities
Improvements Capital Projects
Assets
Cash and cash equivalents -$ 170,725$ 71,476$ 61,064$
Investments - - 327,000 413,741
Receivables:
Other taxes - - - 125,316
Due from other governments - - - -
Total assets -$ 170,725$ 398,476$ 600,121$
Liabilities
Accounts payable -$ -$ 1,569$ -$
Accrued payroll - - - -
Deposits held in trust for others - - - -
Total liabilities - - 1,569 -
Deferred inflows of resources
Unavailable revenue- property taxes - - - -
Unavailable revenue- delinquent lodgers tax - - - -
Total deferred inflows of resources - - - -
Fund balances
Spendable
Restricted for:
General government - - - -
Public safety - - - -
Culture and recreation - - - -
Fire protection - - - -
Health and welfare - - - -
Debt service expenditures - 170,725 - -
Capital projects - - 396,907 600,121
Unassigned - - - -
Total fund balances - 170,725 396,907 600,121
Total liabilities, deferred inflows of resources,
and fund balances -$ 170,725$ 398,476$ 600,121$
The accompanying notes are an integral part of these financial statements
Town of Taos
Nonmajor Governmental Funds
Combining Balance Sheet
June 30, 2015
STATE OF NEW MEXICO
Debt Service Capital Projects
88
Statement A-1
Page 3 of 3
Vehicle
Replacement
1994 Gross
Receipts Tax
Revenue Bond
Acquisition
1999 Gasoline
Tax Acquisition
Total Nonmajor
Governmental
Funds
2,400$ 37,341$ 271,790$ 2,013,305$
26,000 422,066 151 1,901,216
- - - 575,707
- - 234,712 351,891
28,400$ 459,407$ 506,653$ 4,842,119$
999$ -$ 77,140$ 287,865$
- - - 7,906
- - - 5,103
999 - 77,140 300,874
- - - -
- - - 170,583
- - - 170,583
- - - 666,697
- - - 61,083
- - - 602,364
- - - 687,220
- - - 84,919
- - - 357,353
27,401 459,407 429,513 1,913,349
- - - (2,323)
27,401 459,407 429,513 4,370,662
28,400$ 459,407$ 506,653$ 4,842,119$
Capital Projects
89
Fire Protection Recreation Lodger's Tax
Local
Governmental
Correction
Revenues
Taxes
Gross receipts -$ -$ -$ -$
Gasoline and motor vehicle taxes - - - -
Lodger's taxes - - 1,011,809 -
Intergovernmental income
Federal operating grants - - - -
Federal capital grants - - - -
State operating grants 225,842 - 15,000 -
State capital grants - - - -
Charges for services - 457 126,429 59,190
Licenses and fees - - - 12,693
Investment income 77 - - -
Miscellaneous - 5,081 5,498 -
Total revenues 225,919 5,538 1,158,736 71,883
Expenditures
Current
General government - - - -
Public safety 54,364 - - 99,777
Public works - - - -
Culture and recreation - 10,061 740,422 -
Health and welfare - - - -
Capital outlay 200,000 - - -
Debt service
Principal - - - -
Interest - - - -
Total expenditures 254,364 10,061 740,422 99,777
Excess (deficiency) of revenues over
expenditures (28,445) (4,523) 418,314 (27,894)
Other financing sources (uses)
Proceeds from issuance of debt 434,994 - - -
Transfers in - 4,100 730,484 -
Transfers out - - (909,355) -
Total other financing sources (uses)434,994 4,100 (178,871) -
Net change in fund balances 406,549 (423) 239,443 (27,894)
Fund balances - beginning of year 280,671 12,412 350,932 87,034
Fund balances - end of year 687,220$ 11,989$ 590,375$ 59,140$
The accompanying notes are an integral part of these financial statements
STATE OF NEW MEXICO
Town of Taos
Nonmajor Governmental Funds
Combining Statement of Revenues, Expenditures and Changes in Fund Balances
For the Year Ended June 30, 2015
Special Revenue
90
Statement A-2
Page 1 of 3
Law
Enforcement
Protection Civic Center
Domestic
Violence Shelter
Public
Transportation
Community
Grants
Municipal Road
Gasoline Tax
-$ -$ -$ -$ -$ -$
- - - - - 121,583
- - - - - -
- - 139,702 - - -
- - - - - -
- - - 322,533 237,231 -
- - - - - -
- 100 - 43,176 - -
- - - - - -
- - - - - -
- - - 20 - -
- 100 139,702 365,729 237,231 121,583
- - - - 481,104 -
38,535 - - - - -
- - - - - -
- - - - - -
- - 139,702 526,314 - -
- - - 26,869 - -
- - - - - -
- - - - - -
38,535 - 139,702 553,183 481,104 -
(38,535) 100 - (187,454) (243,873) 121,583
- - - - - -
- - - 178,871 350,656 -
- - - - - (121,583)
- - - 178,871 350,656 (121,583)
(38,535) 100 - (8,583) 106,783 -
40,478 (2,423) 1 93,501 109,959 -
1,943$ (2,323)$ 1$ 84,918$ 216,742$ -$
Special Revenue
91
1/4 Cent
Municipal Gross
Receipts Tax
Historical
District Communications
Confidential
Informant
Revenues
Taxes
Gross receipts 985,092$ -$ -$ -$
Gasoline and motor vehicle taxes - - - -
Lodger's taxes - - - -
Intergovernmental income
Federal operating grants - - - 4,328
Federal capital grants - - - -
State operating grants - - - -
State capital grants - - - -
Charges for services - - 244,050 -
Licenses and fees - 128,342 - -
Investment income - - - -
Miscellaneous - 100 1,408 -
Total revenues 985,092 128,442 245,458 4,328
Expenditures
Current
General government - - 470,615 3,000
Public safety - - - -
Public works - - - -
Culture and recreation - 113,826 - -
Health and welfare - - - -
Capital outlay - - - -
Debt service
Principal - - - -
Interest - - - -
Total expenditures - 113,826 470,615 3,000
Excess (deficiency) of revenues over
expenditures 985,092 14,616 (225,157) 1,328
Other financing sources (uses)
Proceeds from issuance of debt - - - -
Transfers in - - - -
Transfers out (943,031) - - -
Total other financing sources (uses)(943,031) - - -
Net change in fund balances 42,061 14,616 (225,157) 1,328
Fund balances - beginning of year 142,975 47,713 236,357 8,500
Fund balances - end of year 185,036$ 62,329$ 11,200$ 9,828$
STATE OF NEW MEXICO
Nonmajor Governmental Funds
Town of Taos
Combining Statement of Revenues, Expenditures and Changes in Fund Balances
For the Year Ended June 30, 2015
Special Revenue
The accompanying notes are an integral part of these financial statements
92
Statement A-2
Page 2 of 3
Special Revenue
Capital/Maintenance/
Operating Fund
2009 NMFA
PPRF
Disadvantage
Program- Eco
Park
2008 Gross
Receipts Tax
Revenue Bond
Retirement
NMFA Debt
Service Reserve
Eco Park
2007 NMFA
Land Purchase
2011 PPRF
Street
Improvement
-$ -$ -$ -$ -$ -$
- - - - - -
- - - - - -
- - - - - -
- - - - - -
- - - - - -
- - - - - -
- - - - - -
- - - - - -
- - - 1,567 5 768
- - - - - -
- - - 1,567 5 768
131,424 - - - 801 -
- - - - - -
- - - - - -
- - - - - -
- - - - - -
5,918 - - - - -
- 132,145 290,000 - 103,440 144,756
- 48,611 204,625 - 9,508 22,962
137,342 180,756 494,625 - 113,749 167,718
(137,342) (180,756) (494,625) 1,567 (113,744) (166,950)
- - - - - -
318,904 180,973 494,625 - 113,749 165,913
- - - - - -
318,904 180,973 494,625 - 113,749 165,913
181,562 217 - 1,567 5 (1,037)
- 2 1 183,174 48 2,651
181,562$ 219$ 1$ 184,741$ 53$ 1,614$
Debt Service
93
Camino Rael
Builidng
2011 PPRF
Street
Improvement
Reserve
Facilities
Improvements Capital Projects
Revenues
Taxes
Gross receipts -$ -$ -$ 738,818$
Gasoline and motor vehicle taxes - - - -
Lodger's taxes - - - -
Intergovernmental income
Federal operating grants - - - -
Federal capital grants - - - -
State operating grants - - - -
State capital grants - - - -
Charges for services - - - -
Licenses and fees - - - -
Investment income - 700 - 1,034
Miscellaneous - - - -
Total revenues - 700 - 739,852
Expenditures
Current
General government - - - -
Public safety - - - -
Public works - - 8,937 41,222
Culture and recreation - - - -
Health and welfare - - - -
Capital outlay - - 201,696 61,831
Debt service
Principal - - - -
Interest - - - -
Total expenditures - - 210,633 103,053
Excess (deficiency) of revenues over
expenditures - 700 (210,633) 636,799
Other financing sources (uses)
Proceeds from issuance of debt - - - -
Transfers in - - 388,000 164,925
Transfers out - - - (751,000)
Total other financing sources (uses)- - 388,000 (586,075)
Net change in fund balances - 700 177,367 50,724
Fund balances - beginning of year - 170,025 219,540 549,397
Fund balances - end of year -$ 170,725$ 396,907$ 600,121$
The accompanying notes are an integral part of these financial statements
STATE OF NEW MEXICO
Town of Taos
Nonmajor Governmental Funds
Combining Statement of Revenues, Expenditures and Changes in Fund Balances
For the Year Ended June 30, 2015
Capital ProjectsDebt Service
94
Statement A-2
Page 3 of 3
Vehicle
Replacement
1994 Gross
Receipts Tax
Revenue Bond
Acquisition
1999 Gasoline
Tax Acquisition
Total Nonmajor
Governmental
Funds
-$ -$ -$ 1,723,910$
- - - 121,583
- - - 1,011,809
- - - 144,030
- - 500,000 500,000
- - - 800,606
- - 481,649 481,649
- - - 473,402
- - - 141,035
- 783 150 5,084
- - - 12,107
- 783 981,799 5,415,215
- - - 1,086,944
- - - 192,676
- 1,560 - 51,719
- - - 864,309
- - - 666,016
57,407 - 1,750,431 2,304,152
- - - 670,341
- - - 285,706
57,407 1,560 1,750,431 6,121,863
(57,407) (777) (768,632) (706,648)
- - - 434,994
- - 144,069 3,235,269
- - - (2,724,969)
- - 144,069 945,294
(57,407) (777) (624,563) 238,646
84,808 460,184 1,054,076 4,132,016
27,401$ 459,407$ 429,513$ 4,370,662$
Capital Projects
95
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 225,842 225,842 225,842 -
State capital grants - - - -
Charges for services - - - -
Licenses and fees - - - -
Investment income (loss)- - 77 77
Miscellaneous - 1 - (1)
Total revenues 225,842 225,843 225,919 76
Expenditures
Current
General government - - - -
Public safety 211,755 215,018 54,364 160,654
Public works - - - -
Culture and recreation - - - -
Health and welfare - - - -
Capital outlay 294,758 726,490 200,000 526,490
Debt service
Principal - - - -
Interest - - - -
Total expenditures 506,513 941,508 254,364 687,144
Excess (deficiency) of revenues over
expenditures (280,671) (715,665) (28,445) 687,220
Other financing sources (uses)
Designated cash (budgeted increase in cash)280,671 715,665 - (715,665)
Transfers in - - - -
Transfers out - - - -
Total other financing sources (uses)280,671 715,665 - (715,665)
Net change in fund balance - - (28,445) (28,445)
Fund balance - beginning of year - - 280,671 280,671
Fund balance - end of year -$ -$ 252,226$ 252,226$
STATE OF NEW MEXICO
The accompanying notes are an integral part of these financial statements
For the Year Ended June 30, 2015
Budget (GAAP Basis) and Actual
Statement of Revenues, Expenditures and Changes in Fund Balance
Fire Protection Special Revenue Fund
Town of Taos
Budgeted Amounts
96
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 - - - -
Intergovernmental income -
Federal operating grants - - - -
Federal capital grants - - - -
State operating grants - - - -
State capital grants - - - -
Charges for services 5,033 5,033 457 (4,576)
Licenses and fees - - - -
Investment income (loss)- - - -
Miscellaneous - 5,082 5,081 (1)
Total revenues 5,033 10,115 5,538 (4,577)
Expenditures
Current
General government - - - -
Public safety - - - -
Public works - - - -
Culture and recreation 9,445 11,440 10,061 1,379
Health and welfare - - - -
Capital outlay - - - -
Debt service
Principal - - - -
Interest - - - -
Total expenditures 9,445 11,440 10,061 1,379
Excess (deficiency) of revenues over expenditures (4,412) (1,325) (4,523) (3,198)
Other financing sources (uses)
Designated cash (budgeted increase in cash)4,412 (2,775) - 2,775
Transfers in - 4,100 4,100 -
Transfers out - - - -
Total other financing sources (uses)4,412 1,325 4,100 2,775
Net change in fund balance - - (423) (423)
Fund balance - beginning of year - - 12,412 12,412
Fund balance - end of year -$ -$ 11,989$ 11,989$
Statement of Revenues, Expenditures and Changes in Fund Balance
Recreation Special Revenue Fund
Town of Taos
STATE OF NEW MEXICO
Budgeted Amounts
The accompanying notes are an integral part of these financial statements
For the Year Ended June 30, 2015
Budget (GAAP Basis) and Actual
97
Statement B-3
Variances
Actual
Favorable
(Unfavorable)
Original Final (GAAP Basis)Final to Actual
Revenues
Taxes
Property taxes -$ -$ -$ -$
Gross receipts - - - -
Gasoline and motor vehicle - - - -
Lodger's taxes 987,360 1,001,322 1,011,809 10,487
Intergovernmental income -
Federal operating grants - - - -
Federal capital grants - - - -
State operating grants - 15,000 15,000 -
State capital grants - - - -
Charges for services 112,902 164,949 126,429 (38,520)
Licenses and fees - - - -
Investment income (loss)- - - -
Miscellaneous 3,000 6,453 5,498 (955)
Total revenues 1,103,262 1,187,724 1,158,736 (28,988)
Expenditures
Current
General government - - - -
Public safety - - - -
Public works - - - -
Culture and recreation 868,538 930,210 740,422 189,788
Health and welfare - - - -
Capital outlay 38,445 38,445 - 38,445
Debt service
Principal - - - -
Interest - - - -
Total expenditures 906,983 968,655 740,422 228,233
Excess (deficiency) of revenues over expenditures 196,279 219,069 418,314 199,245
Other financing sources (uses)
Designated cash (budgeted increase in cash)(8,681) (44,562) - 44,562
Transfers in 750,394 822,735 730,484 (92,251)
Transfers out (937,992) (997,242) (909,355) 87,887
Total other financing sources (uses)(196,279) (219,069) (178,871) 40,198
Net change in fund balance - - 239,443 239,443
Fund balance - beginning of year - - 350,932 350,932
Fund balance - end of year -$ -$ 590,375$ 590,375$
STATE OF NEW MEXICO
The accompanying notes are an integral part of these financial statements
For the Year Ended June 30, 2015
Budget (GAAP Basis) and Actual
Statement of Revenues, Expenditures and Changes in Fund Balance
Lodger's Tax Special Revenue Fund
Town of Taos
Budgeted Amounts
98
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 59,190 59,190 59,190 -
Licenses and fees 22,000 22,000 12,693 (9,307)
Investment income (loss)- - - -
Miscellaneous - - - -
Total revenues 81,190 81,190 71,883 (9,307)
Expenditures
Current
General government - - - -
Public safety 99,700 109,670 99,777 9,893
Public works - - - -
Culture and recreation - - - -
Health and welfare - - - -
Capital outlay - - - -
Debt service
Principal - - - -
Interest - - - -
Total expenditures 99,700 109,670 99,777 9,893
Excess (deficiency) of revenues over expenditures (18,510) (28,480) (27,894) 586
Other financing sources (uses)
Designated cash (budgeted increase in cash)18,510 28,480 - (28,480)
Transfers in - - - -
Transfers out - - - -
Total other financing sources (uses)18,510 28,480 - (28,480)
Net change in fund balance - - (27,894) (27,894)
Fund balance - beginning of year - - 87,034 87,034
Fund balance - end of year -$ -$ 59,140$ 59,140$
Local Government Correction Special Revenue Fund
Town of Taos
STATE OF NEW MEXICO
The accompanying notes are an integral part of these financial statements
Budgeted Amounts
For the Year Ended June 30, 2015
Budget (GAAP Basis) and Actual
Statement of Revenues, Expenditures and Changes in Fund Balance
99
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 32,600 32,600 - (32,600)
State capital grants - - - -
Charges for services - - - -
Licenses and fees - - - -
Investment income (loss)- - - -
Miscellaneous - - - -
Total revenues 32,600 32,600 - (32,600)
Expenditures
Current
General government - - - -
Public safety 40,477 40,477 38,535 1,942
Public works - - - -
Culture and recreation - - - -
Health and welfare - - - -
Capital outlay - - - -
Debt service
Principal - - - -
Interest - - - -
Total expenditures 40,477 40,477 38,535 1,942
Excess (deficiency) of revenues over expenditures (7,877) (7,877) (38,535) (30,658)
Other financing sources (uses)
Designated cash (budgeted increase in cash)7,877 7,877 - (7,877)
Transfers in - - - -
Transfers out - - - -
Total other financing sources (uses)7,877 7,877 - (7,877)
Net change in fund balance - - (38,535) (38,535)
Fund balance - beginning of year - - 40,478 40,478
Fund balance - end of year -$ -$ 1,943$ 1,943$
Law Enforcement Protection Special Revenue Fund
Town of Taos
STATE OF NEW MEXICO
The accompanying notes are an integral part of these financial statements
Budgeted Amounts
For the Year Ended June 30, 2015
Budget (GAAP Basis) and Actual
Statement of Revenues, Expenditures and Changes in Fund Balance
100
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 - - 100 100
Licenses and fees - - - -
Investment income (loss)- - - -
Miscellaneous - - - -
Total revenues - - 100 100
Expenditures
Current
General government - - - -
Public safety - - - -
Public works - - - -
Culture and recreation 2,680 2,680 - 2,680
Health and welfare - - - -
Capital outlay - - - -
Debt service
Principal - - - -
Interest - - - -
Total expenditures 2,680 2,680 - 2,680
Excess (deficiency) of revenues over expenditures (2,680) (2,680) 100 2,780
Other financing sources (uses)
Designated cash (budgeted increase in cash)2,680 2,680 - (2,680)
Transfers in - - - -
Transfers out - - - -
Total other financing sources (uses)2,680 2,680 - (2,680)
Net change in fund balance - - 100 100
Fund balance - beginning of year - - (2,423) (2,423)
Fund balance - end of year -$ -$ (2,323)$ (2,323)$
Civic Center Special Revenue Fund
Town of Taos
STATE OF NEW MEXICO
The accompanying notes are an integral part of these financial statements
Budgeted Amounts
For the Year Ended June 30, 2015
Budget (GAAP Basis) and Actual
Statement of Revenues, Expenditures and Changes in Fund Balance
101
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 150,000 150,000 139,702 (10,298)
Federal capital grants - - - -
State operating grants - - - -
State capital grants - - - -
Charges for services - - - -
Licenses and fees - - - -
Investment income (loss)- - - -
Miscellaneous - - - -
Total revenues 150,000 150,000 139,702 (10,298)
Expenditures
Current
General government - - - -
Public safety - - - -
Public works - - - -
Culture and recreation - - - -
Health and welfare 150,000 150,000 139,702 10,298
Capital outlay - - - -
Debt service
Principal - - - -
Interest - - - -
Total expenditures 150,000 150,000 139,702 10,298
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 - - 1 1
Fund balance - end of year -$ -$ 1$ 1$
Domestic Violence Shelter Special Revenue Fund
Town of Taos
STATE OF NEW MEXICO
The accompanying notes are an integral part of these financial statements
Budgeted Amounts
For the Year Ended June 30, 2015
Budget (GAAP Basis) and Actual
Statement of Revenues, Expenditures and Changes in Fund Balance
102
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 502,395 498,721 322,533 (176,188)
State capital grants - - - -
Charges for services 81,500 81,500 43,176 (38,324)
Licenses and fees - - - -
Investment income (loss)- - - -
Miscellaneous - - 20 20
Total revenues 583,895 580,221 365,729 (214,492)
Expenditures
Current
General government - - - -
Public safety - - - -
Public works - - - -
Culture and recreation - - - -
Health and welfare 603,164 590,763 526,314 64,449
Capital outlay 213,500 231,734 26,869 204,865
Debt service
Principal - - - -
Interest - - - -
Total expenditures 816,664 822,497 553,183 269,314
Excess (deficiency) of revenues over expenditures (232,769) (242,276) (187,454) 54,822
Other financing sources (uses)
Designated cash (budgeted increase in cash)45,171 63,405 - (63,405)
Transfers in 187,598 178,871 178,871 -
Transfers out - - - -
Proceeds from sale of capital assets - - - -
Total other financing sources (uses)232,769 242,276 178,871 (63,405)
Net change in fund balance - - (8,583) (8,583)
Fund balance - beginning of year - - 93,501 93,501
Fund balance - end of year -$ -$ 84,918$ 84,918$
Public Transportation Special Revenue Fund
Town of Taos
STATE OF NEW MEXICO
The accompanying notes are an integral part of these financial statements
Budgeted Amounts
For the Year Ended June 30, 2015
Budget (GAAP Basis) and Actual
Statement of Revenues, Expenditures and Changes in Fund Balance
103
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 273,662 342,286 237,231 (105,055)
State capital grants - - - -
Charges for services - - - -
Licenses and fees - - - -
Investment income (loss)- - - -
Miscellaneous - - - -
Total revenues 273,662 342,286 237,231 (105,055)
Expenditures
Current
General government 580,853 798,133 481,104 317,029
Public safety - - - -
Public works - - - -
Culture and recreation - - - -
Health and welfare - - - -
Capital outlay - - - -
Debt service
Principal - - - -
Interest - - - -
Total expenditures 580,853 798,133 481,104 317,029
Excess (deficiency) of revenues over expenditures (307,191) (455,847) (243,873) 211,974
Other financing sources (uses)
Designated cash (budgeted increase in cash)105,191 105,191 - (105,191)
Transfers in 202,000 350,656 350,656 -
Transfers out - - - -
Total other financing sources (uses)307,191 455,847 350,656 (105,191)
Net change in fund balance - - 106,783 106,783
Fund balance - beginning of year - - 109,959 109,959
Fund balance - end of year -$ -$ 216,742$ 216,742$
Statement of Revenues, Expenditures and Changes in Fund Balance
Community Grants Special Revenue Fund
Town of Taos
STATE OF NEW MEXICO
Budgeted Amounts
The accompanying notes are an integral part of these financial statements
For the Year Ended June 30, 2015
Budget (GAAP Basis) and Actual
104
Statement B-10
Variances
Actual
Favorable
(Unfavorable)
Original Final (GAAP Basis)Final to Actual
Revenues
Taxes
Property taxes -$ -$ -$ -$
Gross receipts - - - -
Gasoline and motor vehicle 114,117 121,584 121,583 (1)
Other - - - -
Intergovernmental income -
Federal operating grants - - - -
Federal capital grants - - - -
State operating grants - - - -
State capital grants - - - -
Charges for services - - - -
Licenses and fees - - - -
Investment income (loss)- - - -
Miscellaneous - - - -
Total revenues 114,117 121,584 121,583 (1)
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 114,117 121,584 121,583 (1)
Other financing sources (uses)
Designated cash (budgeted increase in cash)- - - -
Transfers in - - - -
Transfers out (114,117) (121,584) (121,583) 1
Total other financing sources (uses)(114,117) (121,584) (121,583) 1
Net change in fund balance - - - -
Fund balance - beginning of year - - - -
Fund balance - end of year -$ -$ -$ -$
Municipal Road Gasoline Tax Special Revenue Fund
Town of Taos
STATE OF NEW MEXICO
The accompanying notes are an integral part of these financial statements
Budgeted Amounts
For the Year Ended June 30, 2015
Budget (GAAP Basis) and Actual
Statement of Revenues, Expenditures and Changes in Fund Balance
105
Statement B-11
Variances
Actual
Favorable
(Unfavorable)
Original Final (GAAP Basis)Final to Actual
Revenues
Taxes
Property taxes -$ -$ -$ -$
Gross receipts 951,406 960,979 985,092 24,113
Gasoline and motor vehicle - - - -
Other - - - -
Intergovernmental income -
Federal operating grants - - - -
Federal capital grants - - - -
State operating grants - - - -
State capital grants - - - -
Charges for services - - - -
Licenses and fees - - - -
Investment income (loss)- - - -
Miscellaneous - - - -
Total revenues 951,406 960,979 985,092 24,113
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 951,406 960,979 985,092 24,113
Other financing sources (uses)
Designated cash (budgeted increase in cash)- 53 - (53)
Transfers in - - - -
Transfers out (951,406) (961,032) (943,031) 18,001
Total other financing sources (uses)(951,406) (960,979) (943,031) 17,948
Net change in fund balance - - 42,061 42,061
Fund balance - beginning of year - - 142,975 142,975
Fund balance - end of year -$ -$ 185,036$ 185,036$
Statement of Revenues, Expenditures and Changes in Fund Balance
1/4 Cent Municipal Gross Receipts Tax Special Revenue Fund
Town of Taos
STATE OF NEW MEXICO
Budgeted Amounts
The accompanying notes are an integral part of these financial statements
For the Year Ended June 30, 2015
Budget (GAAP Basis) and Actual
106
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 20,000 20,000 - (20,000)
Licenses and fees 100,000 128,342 128,342 -
Investment income (loss)- - - -
Miscellaneous - 100 100 -
Total revenues 120,000 148,442 128,442 (20,000)
Expenditures
Current
General government - - - -
Public safety - - - -
Public works - - - -
Culture and recreation 153,467 153,467 113,826 39,641
Health and welfare - - - -
Capital outlay - - - -
Debt service
Principal - - - -
Interest - - - -
Total expenditures 153,467 153,467 113,826 39,641
Excess (deficiency) of revenues over expenditures (33,467) (5,025) 14,616 19,641
Other financing sources (uses)
Designated cash (budgeted increase in cash)33,467 5,025 - (5,025)
Transfers in - - - -
Transfers out - - - -
Total other financing sources (uses)33,467 5,025 - (5,025)
Net change in fund balance - - 14,616 14,616
Fund balance - beginning of year - - 47,713 47,713
Fund balance - end of year -$ -$ 62,329$ 62,329$
Budgeted Amounts
The accompanying notes are an integral part of these financial statements
STATE OF NEW MEXICO
Town of Taos
Historical District Special Revenue Fund
Statement of Revenues, Expenditures and Changes in Fund Balance
Budget (GAAP Basis) and Actual
For the Year Ended June 30, 2015
107
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 702,000 702,000 244,050 (457,950)
Licenses and fees - - - -
Investment income (loss)- - - -
Miscellaneous - - 1,408 1,408
Total revenues 702,000 702,000 245,458 (456,542)
Expenditures
Current
General government 679,820 776,039 470,615 305,424
Public safety - - - -
Public works - - - -
Culture and recreation - - - -
Health and welfare - - - -
Capital outlay 39,800 39,800 - 39,800
Debt service
Principal - - - -
Interest - - - -
Total expenditures 719,620 815,839 470,615 345,224
Excess (deficiency) of revenues over expenditures (17,620) (113,839) (225,157) (111,318)
Other financing sources (uses)
Designated cash (budgeted increase in cash)17,620 113,839 - (113,839)
Transfers in - - - -
Transfers out - - - -
Total other financing sources (uses)17,620 113,839 - (113,839)
Net change in fund balance - - (225,157) (225,157)
Fund balance - beginning of year - - 236,357 236,357
Fund balance - end of year -$ -$ 11,200$ 11,200$
Communications Special Revenue Fund
Town of Taos
STATE OF NEW MEXICO
The accompanying notes are an integral part of these financial statements
Budgeted Amounts
For the Year Ended June 30, 2015
Budget (GAAP Basis) and Actual
Statement of Revenues, Expenditures and Changes in Fund Balance
108
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 - 4,328 4,328 -
Federal capital grants - - - -
State operating grants - - - -
State capital grants - - - -
Charges for services - - - -
Licenses and fees - - - -
Investment income (loss)- - - -
Miscellaneous - - - -
Total revenues - 4,328 4,328 -
Expenditures
Current
General government - 6,000 3,000 3,000
Public safety - - - -
Public works - - - -
Culture and recreation - - - -
Health and welfare - - - -
Capital outlay - - - -
Debt service
Principal - - - -
Interest - - - -
Total expenditures - 6,000 3,000 3,000
Excess (deficiency) of revenues over expenditures - (1,672) 1,328 3,000
Other financing sources (uses)
Designated cash (budgeted increase in cash)- 1,672 - (1,672)
Transfers in - - - -
Transfers out - - - -
Total other financing sources (uses)- 1,672 - (1,672)
Net change in fund balance - - 1,328 1,328
Fund balance - beginning of year - - 8,500 8,500
Fund balance - end of year -$ -$ 9,828$ 9,828$
Budgeted Amounts
The accompanying notes are an integral part of these financial statements
STATE OF NEW MEXICO
Town of Taos
Confidential Informant Special Revenue Fund
Statement of Revenues, Expenditures and Changes in Fund Balance
Budget (GAAP Basis) and Actual
For the Year Ended June 30, 2015
109
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 - - - -
Investment income (loss)- - - -
Miscellaneous - - - -
Total revenues - - - -
Expenditures
Current
General government 310,504 312,904 131,424 181,480
Public safety - - - -
Public works - - - -
Culture and recreation - - - -
Health and welfare - - - -
Capital outlay 6,000 6,000 5,918 82
Debt service -
Principal - - - -
Interest - - - -
Total expenditures 316,504 318,904 137,342 181,562
Excess (deficiency) of revenues over expenditures (316,504) (318,904) (137,342) 181,562
Other financing sources (uses)
Designated cash (budgeted increase in cash)- - - -
Transfers in 316,504 318,904 318,904 -
Transfers out - - - -
Total other financing sources (uses)316,504 318,904 318,904 -
Net change in fund balance - - 181,562 181,562
Fund balance - beginning of year - - - -
Fund balance - end of year -$ -$ 181,562$ 181,562$
Budgeted Amounts
The accompanying notes are an integral part of these financial statements
STATE OF NEW MEXICO
Town of Taos
Capital/Maintenance/Operating Special Revenue Fund
Statement of Revenues, Expenditures and Changes in Fund Balance
Budget (GAAP Basis) and Actual
For the Year Ended June 30, 2015
110
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 - - - -
Investment income (loss)- - - -
Miscellaneous - - - -
Total revenues - - - -
Expenditures
Current
General government - - - -
Public safety - - - -
Public works - - - -
Culture and recreation - - - -
Health and welfare - - - -
Capital outlay - - - -
Debt service
Principal 132,145 132,145 132,145 -
Interest 48,611 48,611 48,611 -
Total expenditures 180,756 180,756 180,756 -
Excess (deficiency) of revenues over expenditures (180,756) (180,756) (180,756) -
Other financing sources (uses)
Designated cash (budgeted increase in cash)(1) (218) - 218
Transfers in 180,757 180,974 180,973 (1)
Transfers out - - - -
Total other financing sources (uses)180,756 180,756 180,973 217
Net change in fund balance - - 217 217
Fund balance - beginning of year - - 2 2
Fund balance - end of year -$ -$ 219$ 219$
2009 NMFA PPRF Disadvantage Program- Eco Park Debt Service Fund
Town of Taos
STATE OF NEW MEXICO
The accompanying notes are an integral part of these financial statements
Budgeted Amounts
For the Year Ended June 30, 2015
Budget (GAAP Basis) and Actual
Statement of Revenues, Expenditures and Changes in Fund Balance
111
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 - - - -
Investment income (loss)- - - -
Miscellaneous - - - -
Total revenues - - - -
Expenditures
Current
General government - - - -
Public safety - - - -
Public works - - - -
Culture and recreation - - - -
Health and welfare - - - -
Capital outlay - - - -
Debt service
Principal 290,000 290,000 290,000 -
Interest 204,625 204,625 204,625 -
Total expenditures 494,625 494,625 494,625 -
Excess (deficiency) of revenues over expenditures (494,625) (494,625) (494,625) -
Other financing sources (uses)
Designated cash (budgeted increase in cash)- - - -
Transfers in 494,625 494,625 494,625 -
Transfers out - - - -
Total other financing sources (uses)494,625 494,625 494,625 -
Net change in fund balance - - - -
Fund balance - beginning of year - - 1 1
Fund balance - end of year -$ -$ 1$ 1$
Statement of Revenues, Expenditures and Changes in Fund Balance
2008 Gross Receipts Tax Revenue Bond Retirement Debt Service Fund
Town of Taos
STATE OF NEW MEXICO
Budgeted Amounts
The accompanying notes are an integral part of these financial statements
For the Year Ended June 30, 2015
Budget (GAAP Basis) and Actual
112
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 - - - -
State capital grants - - - -
Charges for services - - - -
Licenses and fees - - - -
Investment income (loss)- - 1,567 1,567
Miscellaneous - - - -
Total revenues - - 1,567 1,567
Expenditures
Current
General government - - - -
Public safety - - - -
Public works - - - -
Culture and recreation - - - -
Health and welfare - - - -
Capital outlay - - - -
Debt service
Principal - - - -
Interest - - - -
Total expenditures - - - -
Excess (deficiency) of revenues over expenditures - - 1,567 1,567
Other financing sources (uses)
Designated cash (budgeted increase in cash)- - - -
Transfers in - - - -
Transfers out - - - -
Total other financing sources (uses)- - - -
Net change in fund balance - - 1,567 1,567
Fund balance - beginning of year - - 183,174 183,174
Fund balance - end of year -$ -$ 184,741$ 184,741$
NMFA Debt Service Reserve Eco Park Debt Service Fund
Town of Taos
STATE OF NEW MEXICO
The accompanying notes are an integral part of these financial statements
Budgeted Amounts
For the Year Ended June 30, 2015
Budget (GAAP Basis) and Actual
Statement of Revenues, Expenditures and Changes in Fund Balance
113
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 - - - -
State operating grants - - - -
State capital grants - - - -
Charges for services - - - -
Licenses and fees - - - -
Investment income (loss)- - 5 5
Miscellaneous - - - -
Total revenues - - 5 5
Expenditures
Current
General government 801 801 801 -
Public safety - - - -
Public works - - - -
Culture and recreation - - - -
Health and welfare - - - -
Capital outlay - - - -
Debt service
Principal 103,440 103,440 103,440 -
Interest 9,508 9,508 9,508 -
Total expenditures 113,749 113,749 113,749 -
Excess (deficiency) of revenues over expenditures (113,749) (113,749) (113,744) 5
Other financing sources (uses)
Designated cash (budgeted increase in cash)- - - -
Transfers in 113,749 113,749 113,749 -
Transfers out - - - -
Total other financing sources (uses)113,749 113,749 113,749 -
Net change in fund balance - - 5 5
Fund balance - beginning of year - - 48 48
Fund balance - end of year -$ -$ 53$ 53$
2007 NMFA Land Purchase Debt Service Fund
Town of Taos
STATE OF NEW MEXICO
The accompanying notes are an integral part of these financial statements
For the Year Ended June 30, 2015
Budgeted Amounts
Budget (GAAP Basis) and Actual
Statement of Revenues, Expenditures and Changes in Fund Balance
114
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 - - - -
Investment income (loss)- - 768 768
Miscellaneous - - - -
Total revenues - - 768 768
Expenditures
Current
General government - - - -
Public safety - - - -
Public works - - - -
Culture and recreation - - - -
Health and welfare - - - -
Capital outlay - - - -
Debt service
Principal 144,756 144,756 144,756 -
Interest 22,962 22,962 22,962 -
Total expenditures 167,718 167,718 167,718 -
Excess (deficiency) of revenues over expenditures (167,718) (167,718) (166,950) 768
Other financing sources (uses)
Designated cash (budgeted increase in cash)1,805 1,805 - (1,805)
Transfers in 165,913 165,913 165,913 -
Transfers out - - - -
Total other financing sources (uses)167,718 167,718 165,913 (1,805)
Net change in fund balance - - (1,037) (1,037)
Fund balance - beginning of year - - 2,651 2,651
Fund balance - end of year -$ -$ 1,614$ 1,614$
2011 PPRF Street Improvement Debt Service Fund
Town of Taos
STATE OF NEW MEXICO
The accompanying notes are an integral part of these financial statements
Budgeted Amounts
For the Year Ended June 30, 2015
Budget (GAAP Basis) and Actual
Statement of Revenues, Expenditures and Changes in Fund Balance
115
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 - - - -
State operating grants - - - -
State capital grants - - - -
Charges for services - - - -
Licenses and fees - - - -
Investment income (loss)- - - -
Miscellaneous - - - -
Total revenues - - - -
Expenditures
Current
General government - - - -
Public safety - - - -
Public works - - - -
Culture and recreation - - - -
Health and welfare - - - -
Capital outlay - - - -
Debt service
Principal 18,000 18,000 - 18,000
Interest - - - -
Total expenditures 18,000 18,000 - 18,000
Excess (deficiency) of revenues over expenditures (18,000) (18,000) - 18,000
Other financing sources (uses)
Designated cash (budgeted increase in cash)- - - -
Transfers in 18,000 18,000 - (18,000)
Transfers out - - - -
Total other financing sources (uses)18,000 18,000 - (18,000)
Net change in fund balance - - - -
Fund balance - beginning of year - - - -
Fund balance - end of year -$ -$ -$ -$
Budgeted Amounts
The accompanying notes are an integral part of these financial statements
STATE OF NEW MEXICO
Town of Taos
Camino Rael Building Debt Service Fund
Statement of Revenues, Expenditures and Changes in Fund Balance
Budget (GAAP Basis) and Actual
For the Year Ended June 30, 2015
116
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 - - - -
Charges for services - - - -
Licenses and fees - - - -
Investment income (loss)- - 700 700
Miscellaneous - - - -
Total revenues - - 700 700
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 - - 700 700
Other financing sources (uses)
Designated cash (budgeted increase in cash)- - - -
Transfers in - - - -
Transfers out - - - -
Total other financing sources (uses)- - - -
Net change in fund balance - - 700 700
Fund balance - beginning of year - - 170,025 170,025
Fund balance - end of year -$ -$ 170,725$ 170,725$
Statement of Revenues, Expenditures and Changes in Fund Balance
2011 PPRF Street Improvement Reserve Debt Service Fund
Town of Taos
STATE OF NEW MEXICO
Budgeted Amounts
The accompanying notes are an integral part of these financial statements
For the Year Ended June 30, 2015
Budget (GAAP Basis) and Actual
117
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 - 500,000 - (500,000)
State operating grants - - - -
State capital grants 50,000 50,000 - (50,000)
Charges for services - - - -
Licenses and fees - - - -
Investment income (loss)- - - -
Miscellaneous - - - -
Total revenues 50,000 550,000 - (550,000)
Expenditures
Current
General government - - - -
Public safety - - - -
Public works - - 8,937 (8,937)
Culture and recreation - - - -
Health and welfare - - - -
Capital outlay 602,598 1,152,598 201,696 950,902
Debt service
Principal - - - -
Interest - - - -
Total expenditures 602,598 1,152,598 210,633 941,965
Excess (deficiency) of revenues over expenditures (552,598) (602,598) (210,633) 391,965
Other financing sources (uses)
Designated cash (budgeted increase in cash)214,598 214,598 - (214,598)
Transfers in 338,000 388,000 388,000 -
Transfers out - - - -
Total other financing sources (uses)552,598 602,598 388,000 (214,598)
Net change in fund balance - - 177,367 177,367
Fund balance - beginning of year - - 219,540 219,540
Fund balance - end of year -$ -$ 396,907$ 396,907$
Facilities Improvements Capital Projects Fund
Town of Taos
STATE OF NEW MEXICO
The accompanying notes are an integral part of these financial statements
Budgeted Amounts
For the Year Ended June 30, 2015
Budget (GAAP Basis) and Actual
Statement of Revenues, Expenditures and Changes in Fund Balance
118
Statement B-24
Variances
Actual
Favorable
(Unfavorable)
Original Final (GAAP Basis)Final to Actual
Revenues
Taxes
Property taxes -$ -$ -$ -$
Gross receipts 706,699 720,735 738,818 18,083
Gasoline and motor vehicle - - - -
Other - - - -
Intergovernmental income
Federal operating grants - - - -
Federal capital grants - - - -
State operating grants 58,967 58,967 - (58,967)
State capital grants 60,000 67,642 - (67,642)
Charges for services - - - -
Licenses and fees - - - -
Investment income (loss)- - 1,034 1,034
Miscellaneous - - - -
Total revenues 825,666 847,344 739,852 (107,492)
Expenditures
Current
General government - - - -
Public safety - - - -
Public works 164,000 175,241 41,222 134,019
Culture and recreation - - - -
Health and welfare - - - -
Capital outlay 495,405 503,047 61,831 441,216
Debt service -
Principal - - - -
Interest - - - -
Total expenditures 659,405 678,288 103,053 575,235
Excess (deficiency) of revenues over expenditures 166,261 169,056 636,799 467,743
Other financing sources (uses)
Designated cash (budgeted increase in cash)440,464 417,019 - (417,019)
Transfers in 144,275 164,925 164,925 -
Transfers out (751,000) (751,000) (751,000) -
Total other financing sources (uses)(166,261) (169,056) (586,075) (417,019)
Net change in fund balance - - 50,724 50,724
Fund balance - beginning of year - - 549,397 549,397
Fund balance - end of year -$ -$ 600,121$ 600,121$
Capital Projects Capital Projects Fund
Town of Taos
STATE OF NEW MEXICO
The accompanying notes are an integral part of these financial statements
Budgeted Amounts
For the Year Ended June 30, 2015
Budget (GAAP Basis) and Actual
Statement of Revenues, Expenditures and Changes in Fund Balance
119
Statement B-25
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 - - - -
Investment income (loss)- - - -
Miscellaneous - - - -
Total revenues - - - -
Expenditures
Current
General government - - - -
Public safety - - - -
Public works - - - -
Culture and recreation - - - -
Health and welfare - - - -
Capital outlay 64,000 64,000 57,407 6,593
Debt service
Principal - - - -
Interest - - - -
Total expenditures 64,000 64,000 57,407 6,593
Excess (deficiency) of revenues over expenditures (64,000) (64,000) (57,407) 6,593
Other financing sources (uses)
Designated cash (budgeted increase in cash)64,000 64,000 - (64,000)
Transfers in - - - -
Transfers out - - - -
Total other financing sources (uses)64,000 64,000 - (64,000)
Net change in fund balance - - (57,407) (57,407)
Fund balance - beginning of year - - 84,808 84,808
Fund balance - end of year -$ -$ 27,401$ 27,401$
Vehicle Replacement Capital Projects Fund
Town of Taos
STATE OF NEW MEXICO
The accompanying notes are an integral part of these financial statements
Budgeted Amounts
For the Year Ended June 30, 2015
Budget (GAAP Basis) and Actual
Statement of Revenues, Expenditures and Changes in Fund Balance
120
Statement B-26
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 50,000 50,000 - (50,000)
Charges for services - - - -
Licenses and fees - - - -
Investment income (loss)2,000 2,000 783 (1,217)
Miscellaneous - - - -
Total revenues 52,000 52,000 783 (51,217)
Expenditures
Current
General government - - - -
Public safety - - - -
Public works 8,994 20,494 1,560 18,934
Culture and recreation - - - -
Health and welfare - - - -
Capital outlay - - - -
Debt service
Principal - - - -
Interest - - - -
Total expenditures 8,994 20,494 1,560 18,934
Excess (deficiency) of revenues over expenditures 43,006 31,506 (777) (32,283)
Other financing sources (uses)
Designated cash (budgeted increase in cash)(43,006) (31,506) - 31,506
Transfers in - - - -
Transfers out - - - -
Total other financing sources (uses)(43,006) (31,506) - 31,506
Net change in fund balance - - (777) (777)
Fund balance - beginning of year - - 460,184 460,184
Fund balance - end of year -$ -$ 459,407$ 459,407$
1994 Gross Receipts Tax Revenue Bond Acquisition Capital Projects Fund
Town of Taos
STATE OF NEW MEXICO
The accompanying notes are an integral part of these financial statements
Budgeted Amounts
For the Year Ended June 30, 2015
Budget (GAAP Basis) and Actual
Statement of Revenues, Expenditures and Changes in Fund Balance
121
Statement B-27
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 1,000,000 1,000,000 500,000 (500,000)
State operating grants - - - -
State capital grants 1,329,494 1,329,494 481,649 (847,845)
Charges for services - - - -
Licenses and fees - - - -
Investment income (loss)2,000 2,000 150 (1,850)
Miscellaneous - - - -
Total revenues 2,331,494 2,331,494 981,799 (1,349,695)
Expenditures
Current
General government - - - -
Public safety - - - -
Public works - - - -
Culture and recreation - - - -
Health and welfare - - - -
Capital outlay 3,506,591 3,506,591 1,750,431 1,756,160
Debt service
Principal - - - -
Interest - - - -
Total expenditures 3,506,591 3,506,591 1,750,431 1,756,160
Excess (deficiency) of revenues over expenditures (1,175,097) (1,175,097) (768,632) 406,465
Other financing sources (uses)
Designated cash (budgeted increase in cash)1,042,903 1,031,027 - (1,031,027)
Transfers in 132,194 144,070 144,069 (1)
Transfers out - - - -
Total other financing sources (uses)1,175,097 1,175,097 144,069 (1,031,028)
Net change in fund balance - - (624,563) (624,563)
Fund balance - beginning of year - - 1,054,076 1,054,076
Fund balance - end of year -$ -$ 429,513$ 429,513$
1999 Gasoline Tax Acquisition Capital Projects Fund
Town of Taos
STATE OF NEW MEXICO
The accompanying notes are an integral part of these financial statements
Budgeted Amounts
For the Year Ended June 30, 2015
Budget (GAAP Basis) and Actual
Statement of Revenues, Expenditures and Changes in Fund Balance
122
Statement B-28
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 22,082,092 22,082,092 2,069,246 (20,012,846)
State operating grants - - - -
State capital grants 1,601,259 1,601,259 113,655 (1,487,604)
Charges for services - - - -
Licenses and fees - - - -
Investment income (loss)- - - -
Miscellaneous - - - -
Total revenues 23,683,351 23,683,351 2,182,901 (21,500,450)
Expenditures
Current
General government - - - -
Public safety - - - -
Public works 50,000 50,000 - 50,000
Culture and recreation - - - -
Health and welfare - - - -
Capital outlay 24,389,662 24,389,662 2,297,763 22,091,899
Debt service
Principal - - - -
Interest - - - -
Total expenditures 24,439,662 24,439,662 2,297,763 22,141,899
Excess (deficiency) of revenues over expenditures (756,311) (756,311) (114,862) 641,449
Other financing sources (uses)
Designated cash (budgeted increase in cash)343,311 343,311 - (343,311)
Transfers in 413,000 413,000 413,000 -
Transfers out - - - -
Total other financing sources (uses)756,311 756,311 413,000 (343,311)
Net change in fund balance - - 298,138 298,138
Fund balance - beginning of year - - 491,455 491,455
Fund balance - end of year -$ -$ 789,593$ 789,593$
Airport Construction Capital Projects Fund
Town of Taos
STATE OF NEW MEXICO
The accompanying notes are an integral part of these financial statements
Budgeted Amounts
For the Year Ended June 30, 2015
Budget (GAAP Basis) and Actual
Statement of Revenues, Expenditures and Changes in Fund Balance
123
STATE OF NEW MEXICO Statement B-29
Budget (GAAP Basis) and Actual
Variances
Favorable
Budget Amounts Actual (Unfavorable)
Original Final (GAAP Basis)Final to Actual
Operating revenues
Charges for services 3,215,764$ 3,261,430$ 3,331,297$ 69,867$
Total operating revenues 3,215,764 3,261,430 3,331,297 69,867
Operating expenses
Personnel services 801,563 766,484 675,971 90,513
Contractual services 1,203,993 1,364,919 1,226,540 138,379
Supplies 178,968 163,865 41,584 122,281
Maintenance and materials 90,931 65,172 43,236 21,936
Utilities 400,958 377,115 367,985 9,130
Equipment 3,216,677 3,299,468 (974) 3,300,442
Depreciation - - 1,620,927 (1,620,927)
Miscellaneous 431,663 434,889 210,885 224,004
Total operating expenses 6,324,753 6,471,912 4,186,154 2,285,758
Operating income (loss) (3,108,989) (3,210,482) (854,857) 2,355,625
Non-operating revenues (expenses)
Gross receipts taxes 475,510 475,510 528,195 52,685
Interest expense (131,271) (128,502) (121,308) 7,194
Interest income 4,133 4,449 5,180 731
Miscellaneous expense - - (2) (2)
Total non-operating revenues
(expenses)348,372 351,457 412,065 60,608
Income (loss) before transfers and grants (2,760,617) (2,859,025) (442,792) 2,416,233
Transfers - - - -
Change in net position (2,760,617)$ (2,859,025)$ (442,792) 2,416,233$
Net position, beginning 25,108,266
Net position- restatement (Note 20)(545,670)
Net position- beginning as restated 24,562,596
Net position, ending 24,119,804$
The accompanying notes are an integral part of these financial statements
For the Year Ended June 30, 2015
Town of Taos
Statement of Revenues, Expenses and Changes in Net Position
Water and Sewer Proprietary Fund
124
STATE OF NEW MEXICO Statement B-30
Budget (GAAP Basis) and Actual
Variances
Favorable
Budget Amounts Actual (Unfavorable)
Original Final (GAAP Basis)Final to Actual
Operating revenues
Charges for services 1,293,950$ 1,393,877$ 1,375,185$ (18,692)$
Total operating revenues 1,293,950 1,393,877 1,375,185 (18,692)
Operating expenses
Personnel services 146,544 131,026 129,228 1,798
Contractual services 803,800 825,801 816,524 9,277
Supplies 15,349 15,249 9,061 6,188
Maintenance and materials 69,300 65,345 63,643 1,702
Utilities 240,520 264,100 240,133 23,967
Equipment - 6,011 - 6,011
Depreciation - - 57,000 (57,000)
Miscellaneous 73,236 76,835 67,806 9,029
Total operating expenses 1,348,749 1,384,367 1,383,395 972
Operating income (loss) (54,799) 9,510 (8,210) (17,720)
Non-operating revenues (expenses)
Gross receipts taxes - - - -
Interest expense - - - -
Interest income - - - -
Miscellaneous income 21,373 21,384 16,774 (4,610)
Total non-operating revenues
(expenses)21,373 21,384 16,774 (4,610)
Income (loss) before transfers and grants (33,426) 30,894 8,564 (22,330)
Transfers - (118,222) (118,222) -
Change in net position (33,426)$ (87,328)$ (109,658) (22,330)$
Net position, beginning 1,464,959
Net position- restatement (Note 20)(103,639)
Net position- beginning as restated 1,361,320
Net position, ending 1,251,662$
For the Year Ended June 30, 2015
Town of Taos
Statement of Revenues, Expenses and Changes in Net Position
Solid Waste Proprietary Fund
The accompanying notes are an integral part of these financial statements
125
STATE OF NEW MEXICO Statement B-31
Budget (GAAP Basis) and Actual
Variances
Favorable
Budget Amounts Actual (Unfavorable)
Original Final (GAAP Basis)Final to Actual
Operating revenues
Charges for services 1,126,196$ 1,182,979$ 1,197,008$ 14,029$
Total operating revenues 1,126,196 1,182,979 1,197,008 14,029
Operating expenses
Personnel services 286,397 272,681 271,027 1,654
Contractual services 301,941 314,865 290,201 24,664
Supplies 22,522 31,903 12,599 19,304
Maintenance and materials 103,849 98,846 95,071 3,775
Utilities 8,564 6,462 6,487 (25)
Depreciation - - 177,431 (177,431)
Miscellaneous 163,475 166,585 57,102 109,483
Total operating expenses 1,658,748 1,901,564 910,892 990,672
Operating income (loss) (532,552) (718,585) 286,116 1,004,701
Non-operating revenues (expenses)
Gross receipts taxes - - - -
Interest expense (12,650) (12,650) (12,650) -
Interest income - - 1,283 1,283
Miscellaneous income (expense)- - (11) (11)
Total non-operating revenues
(expenses)(12,650) (12,650) (11,378) 1,272
Income (loss) before transfers and grants (545,202) (731,235) 274,738 1,005,973
Transfers 612,390 118,222 118,222 -
Change in net position 67,188$ (613,013)$ 392,960 1,005,973$
Net position, beginning 2,396,398
Net position- restatement (Note 20)(197,672)
Net position- beginning as restated 2,198,726
Net position, ending 2,591,686$
The accompanying notes are an integral part of these financial statements
For the Year Ended June 30, 2015
Town of Taos
Statement of Revenues, Expenses and Changes in Net Position
Taos Regional Landfill Proprietary Fund
126
SUPPORTING SCHEDULES
127
STATE OF NEW MEXICO
Town of Taos
Schedule of Deposit and Investment Accounts
Account Bank Deposits Outstanding Book
Bank Name/Account Name Type Balance in Transit Checks Balance
US Bank
Clearing Account Checking 517,296$ 254,884$ 545,523$ 226,657$
Judicial Bond Fund Municipal Court Checking 937 - 822 115
Utility Construction Fund Checking 39,530 - - 39,530
Water & Sewer System Income Fund Checking 4,720,426 68,975 28,641 4,760,760
Certificate of Deposit - Investment CD 170,500 - - 170,500
Total US Bank 5,448,689 323,859 574,986 5,197,562
Centinel Bank
General Fund Checking 4,444,171 - 191,714 4,252,457
Water/Wastewater Improvement Fund Checking 170,798 - 54,778 116,020
Payroll Clearing Checking 6,603 - 6,603 -
1994 GRT Revenue Bond Acquisition Fund Checking 37,341 - - 37,341
HUD Account - Domestic Violence Shelter Checking 17,629 - 17,628 1
ACH Transfer Account Checking 78,458 33,229 111,587 100
Total Centinel Bank 4,755,000 33,229 382,310 4,405,919
Bank of Albuquerque- Investments
2004 Taos Regional Landfill Revenue Bond
Reserve
U.S. Treasury
Mutual Fund 62,206 - - 62,206
2008A Taos Regional Landfill Debt Service U.S. Treasury
Mutual Fund 100,773 - - 100,773
2008 Gross Receipts Tax Revenue Bond Reserve U.S. Treasury
Mutual Fund 170,725 - - 170,725
2010a Phase I Multi Phased Recreation Park U.S. Treasury
Mutual Fund 182,153 - - 182,153
Water Systems Improvement Grant U.S. Treasury
Mutual Fund 1,776,513 - - 1,776,513
WTB Water Systems Improvement Grant U.S. Treasury
Mutual Fund 131,774 - - 131,774
Fire Pumper U.S. Treasury
Mutual Fund 431,809 - - 431,809
Total Bank of Albuquerque 2,855,953 - - 2,855,953
New Mexico Finance Authority - Investments
2007 NMFA Land Purchase State Treasurer
Debt Service 53 - - 53
2004 Taos Regional Landfill Revenue Bond
Reserve
State Treasurer
Debt Service 964 - - 964
2008A Taos Regional Landfill Debt Service State Treasurer
Debt Service 1,298 - - 1,298
2010 Phase I Multi-phased Rec. Park State Treasurer
Debt Service 2,588 - - 2,588
1999 Gasoline Tax Acquisition State Treasurer
Debt Service 1,614 - - 1,614
Total New Mexico Finance Authority 6,517 - - 6,517
Total 13,066,159$357,088$ 957,296$ 12,465,951
New Mexico State Treasurer Local Government Investment Pool 4,065,875
Reserve Contingency Fund 5,392
Add: petty cash 1,850
Total deposits and investments 16,539,068$
See independent auditors' report
June 30, 2015
128
STATE OF NEW MEXICO Schedule III
Town of Taos Page 2 of 2
Schedule of Deposit and Investment Accounts
Deposits and investments per financial statements:
Cash and cash equivalents - Exhibit A-1 7,122,688$
Investments - Exhibit A-1 4,181,767
Restricted cash and cash equivalents - Exhibit A-1 2,970,568
Restricted investments- Exhibit A-1 2,192,869
Fiduciary funds cash and investments - Exhibit E-1 71,176
Total deposits and investments 16,539,068$
June 30, 2015
129
STATE OF NEW MEXICO Schedule IV
Description of Fair Market
Name of Pledged CUSIP Value at Location
Depository Collateral Maturity Number June 30, 2015 of Safekeeper
US Bank
FNMA POOL 890193 8/1/2025 31410K7E8 734,290$ Federal Home Loan Bank, Dallas, TX
FNMA POOL 890620 9/1/2028 31410LPD8 1,248,478 Federal Home Loan Bank, Dallas, TX
FNMA POOL AE5486 10/1/2025 31419GCY8 651,635 Federal Home Loan Bank, Dallas, TX
FNMA POOL AE8316 11/1/2025 31419KG25 2,175,831 Federal Home Loan Bank, Dallas, TX
FNMA POOL AH2656 1/1/2026 3138A35S2 875,402 Federal Home Loan Bank, Dallas, TX
5,685,636
Centinel Bank
CLOVIS SCH DIST 8/1/2022 189414KC8 200,000 Independent Bankers Bank, Dallas TX
TAOS SD ED TECH 10/1/2015 87601UAG8 315,000 Independent Bankers Bank, Dallas TX
LOVINGTON SCH 10/1/2016 547473DE5 50,000 Independent Bankers Bank, Dallas TX
LAS CRUCES SD GO 8/1/2021 517534PE7 250,000 Independent Bankers Bank, Dallas TX
ESPANOLA SCH 9/1/2025 29662RBA5 150,000 Independent Bankers Bank, Dallas TX
LEA COUNTY SCH 1/15/2017 521513BR1 179,984 Independent Bankers Bank, Dallas TX
RUIDOSO SD GO 8/1/2021 781338HR2 250,000 Independent Bankers Bank, Dallas TX
FNMA 1612 1/1/2017 3138E5Y1 289,499 Independent Bankers Bank, Dallas TX
FHLB 12/14/2018 3133XSUN6 853,833 Independent Bankers Bank, Dallas TX
2,538,316
Total Pledged Collateral 8,223,952$
See independent auditors' report
June 30, 2015
Town of Taos
Schedule of Collateral Pledged by Depository for Public Funds
130
Schedule V
Balance Balance
June 30, 2014 Additions Deletions June 30, 2015
Assets
Cash 8,725$ $ 16,736 $ 14,285 11,176$
Investments 60,000 - - 60,000
Total assets 68,725$ 16,736$ 14,285$ 71,176$
Liabilities
Deposits payable 68,342$ 16,736$ 14,285$ 70,793$
Due to other entities 383 - - 383
Total liabilities 68,725$ 16,736$ 14,285$ 71,176$
STATE OF NEW MEXICO
See independent auditors' report
For the Year Ended June 30, 2015
Schedule of Changes in Fiduciary Assets and Liabilities - Agency Funds
Town of Taos
131
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
June 30, 2015
STATE OF NEW MEXICO
Town of Taos
Schedule of Joint Powers Agreements
See independent auditors' report
132
Schedule VI
Period Cost to Town
Town
Contributions Audit Responsibility
40 Years from 2009, with option to
renew
$2,140,012 for
Phase I; unknown
for other phases
None to date Taos Municipal School
District
November 20, 2007 to January 31,
2028
Indeterminate Indeterminate County of Taos
July 6, 1998 until terminated Estimated $340,000
per year
$330,950 Town of Taos
50 years from November 2, 2000 Dependent on
landfill expenses
None to date Town of Taos
133
STATE OF NEW MEXICO
Schedule of Vendor Information for Purchases Exceeding $60,000 (excluding GRT)
For the Year Ended June 30, 2015
Title: Finance Department Date: June 30, 2015
RFP#/ RFB#Type of Procurement Awarded Vendor
$ Amount of
Awarded Contract
$ Amount of
Amended Contract
RFP SB04-PO1415 Souder Miller & Associates $ 294,010.45 367,828.00$
RFP SB04-PO1415 Bohannon Huston - -
RFP SB04-PO1415 Engineers Inc.- -
RFP SB04-PO1415 Wilson & Company - -
BID 14-15-03 Century Club Construction - -
BID 14-15-04
Did not receive any bids first
round - -
BID 14-15-04 Garcia Underground 630,911.35 -
BID 14-15-05
Northern Mountain
Constructors 5,389,832.08 -
BIB 14-15-05 Michael's Corporation - -
BID 14-15-07 Comnet - -
BID 14-15-09 AJAC Construction 897,715.20 -
BID 14-15-09
Northern Mountain
Constructors 340,979.77 -
BID 14-15-09 HR Construction - -
RFQ 14-15-10 Armstrong Consultants Inc.577,045.08 -
RFQ 14-15-10 Molzen Corbin - -
RFQ 14-15-10 Delta Airport Construction Inc.- -
BID 14-15-11
Northern Mountain
Constructors 701,913.77 -
BID 14-15-11 Century Club Construction - -
BID 14-15-12
Northern Mountain
Constructors - -
Prepared by: Town of Taos
Town of Taos
See independent auditors' report
134
Schedule VII
Page 1 of 2
Name and Physical Address per the
Procurement Documentation, of ALL
Vendors that Responded
In-State/Out-of-
State Vendor
(Y or N)
(Based on
Statutory
Definition)
Was the Vendor
In-State and
Chose Veteran's
Preference (Y or
N) For Federal
Funds Answer
N/A Brief Description of the Scope of Work
Souder, Miller & Associates
2904 Rodeo Park Drive East, Bldg. 100
Santa Fe, New Mexico 87505 Yes No Engineering Services for Camino del Medio
Bohannan Huston
7500 Jefferson Street NE
Albuquerque, New Mexico 87571 Yes No Engineering Services for Camino del Medio
Engineers Inc. 1601
Camino del Coronado
Tucumcari, New Mexico 88401 Yes No Engineering Services for Camino del Medio
Wilson & Company
4900 Lang Avenue NE
Albuquerque, New Mexico 87109 Yes No Engineering Services for Camino del Medio
Century Club Construction
8201 Golf Course Road NW D-295
Albuquerque, New Mexico 87120 Yes No Salazar Road Extension
N/A N/A
Camino de la Merced - Construction of
Water & Roadway Improvements
Garcia Underground Inc.
P.O. Box 345
Guadalupita, New Mexico 87722 Yes No
Re-Bid: Camino de la Merced - Construction
of Water & Roadway Improvements
Northern Mountain Constructors
P.O. Box 348
Albuquerque, New Mexico 87529 Yes No
Construction of Taos Regional Airport
Runway Improvements
Michels Corporation 817
West Main Street
Brownsville, Wisconsin 53006 No N/A
Construction of Taos Regional Airport
Runway Improvements
Comnet 1562
Park Street Castle
Rock, Colorado 80109 No N/A Telecommunications Tower
AJAC Construction
8359 Corona Loop NE
Albuqueruqe, New Mexico 87113 Yes No
Taos Regional Landfill Construction of Cells
3B and 4
Northern Mountain Constructors
P.O. Box 348
Albuquerque, New Mexico 87529 Yes No
Taos Regional Landfill Construction of Cells
3B and 4
HR Construction 5520
Broadway SE
Albuquerque, New Mexico 87105 Yes No
Taos Regional Landfill Construction of Cells
3B and 4
Armstrong Consultants Inc.
2305 Renard Place, SE Suite 210
Albuquerque, New Mexico 87106 FAA Grant N/A
Engineering Services for Taos Regional
Airport by Task Order G
Molzen Corbin
2701 Miles Road SE
Albuquerque, New Mexico 87106 FAA Grant N/A
Engineering Services for Taos Regional
Airport by Task Order
Delta Airport Construction Inc.
7804 Pan American Freeway, Suite 4
Albuquerque, New Mexico 87109 FAA Grant N/A
Engineering Services for Taos Regional
Airport by Task Order
Northern Mountain Constructors
P.O. Box 348
Albuquerque, New Mexico 87529 Yes No Chamisa Road Infrastructure Improvements
Century Club Construction
8201 Golf Course Road NW D-295 Yes No Chamisa Road Infrastructure Improvements
Northern Mountain Constructors
P.O. Box 348
Albuquerque, New Mexico 87529 Yes No
Road Improvements Camino de la Placita,
Civic Plaza Drive and Bent Street
135
STATE OF NEW MEXICO
Schedule of Vendor Information for Purchases Exceeding $60,000 (excluding GRT)
For the Year Ended June 30, 2015
Title: Finance Department Date: June 30, 2015
RFP#/ RFB#Type of Procurement Awarded Vendor
$ Amount of
Awarded Contract
$ Amount of
Amended Contract
BID 14-15-12A Silva's Excavation - -
BID 14-15-13 Garcia Underground 311,843.03 -
BID 14-15-13 Total Contracting Services Inc.- -
BID 14-15-13 Velocity Build - -
BID 14-15-13
CJ Mead Construction
Company - -
BID 14-15-13 New Image Construction Inc.- -
BID 14-15-13 TLC Plumbing & Utility - -
BID 14-15-13 Sasquatch Inc.- -
BID 14-15-13 H.O. Construction Inc.- -
RFP 14-15-15 Atlas Advertising 357,000.00 -
RFP 14-15-15 12 FPS - -
RFP 14-15-15 Accelerated Imagination - -
RFP 14-15-15 Griffin & Associates - -
RFP 14-15-15 Profor Creative Services - -
RFP 14-15-15 The Waite Company, LLC - -
RFP 14-15-15
Wilson Binkley Advertising &
Marketing - -
RFP 14-15-16 Rocky Mountain Youth Corps.79,106.62 -
RFP 14-15-23 Community Against Violence - -
See independent auditors' report
Town of Taos
Prepared by: Town of Taos
136
Schedule VII
Page 2 of 2
Name and Physical Address per the
Procurement Documentation, of ALL
Vendors that Responded
In-State/Out-of-
State Vendor
(Y or N)
(Based on
Statutory
Definition)
Was the Vendor
In-State and
Chose Veteran's
Preference (Y or
N) For Federal
Funds Answer
N/A Brief Description of the Scope of Work
Silva's Excavation P.O.
Box 1101 El Prado,
New Mexico 87529 Yes No
Road Improvements Camino de la Placita,
Civic Plaza Drive and Bent Street
Garcia Underground Inc.
P.O. Box 345
Guadalupita, New Mexico 87722 Yes No Weimer Hills Water Distribution Project
Total Contracting Services, Inc.
P.O. Box 72395
Albuquerque, New Mexico 87195 Yes No Weimer Hills Water Distribution Project
Velocity Build
62B Tribal Road 90
Albuquerque, New Mexico 87105 No No Weimer Hills Water Distribution Project
CJ Mead Construction Co. Inc.
P.O. Box 952
Edgewood, New Mexico 87015 Yes No Weimer Hills Water Distribution Project
New Image Construction, Inc.
HCR 72 P.O. Box 5
Ribera, New Mexico 87560 Yes No Weimer Hills Water Distribution Project
TLC Plumbing & Utility
5000 Edith Blvd. NE
Albuquerque, New Mexico 87107 Yes No Weimer Hills Water Distribution Project
Sasquatch, Inc. 2868
Rufina St. A Santa Fe,
New Mexico 87507 Yes No Weimer Hills Water Distribution Project
H.O. Construction Inc. P.O.
Box 9468
Albuquerque, New Mexico 87119 Yes No Weimer Hills Water Distribution Project
Atlas Advertising 929
Broadway Denver,
Colorado 80203 No No Tourism Related Marketing & Advertising
12FPS 520
Hampshire Street, # 206 San Francisco,
California 94110 Yes No Tourism Related Marketing & Advertising
Accelerated Imagination
900RR620 South, Suite C101
Austin, Texas 78734 No No Tourism Related Marketing & Advertising
Griffin & Assoc 119
Dartmouth Drive SE Albuquerque,
87106 Yes No Tourism Related Marketing & Advertising
Profor Creative Services
609 Wood St. Suite A Austin,
Texas 78703 No No Tourism Related Marketing & Advertising
The Waite Company, LLC 6000
Uptown Blvd. Suite 130 Albuquerque,
NM 87110 Yes No Tourism Related Marketing & Advertising
Wilson Brinkley 250
Cotorro Court
Las Cruces, New Mexico 88005 Yes No Tourism Related Marketing & Advertising
Rocky Mountain Youth Corps
1203 King Drive P.O. Box 1960
Ranchos de Taos, New Mexico 87557 Yes No Kit Carson Park Revitalization Project
Community Against Violence
945 Salazar Rd. Taos,
NM 87571 Yes No Continuum of Care Provider
137
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138
COMPLIANCE SECTION
139
2700 San Pedro NE Albuquerque NM 87110 www.acgsw.com T: 505.883.2727 F: 505.884.6719
REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON
COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS
PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
INDEPENDENT AUDITORS’ REPORT
Timothy Keller
New Mexico State Auditor
The United States Office of Management and Budget and
The Town Council
Town of Taos
Taos, New Mexico
We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards
applicable to the financial audits contained in Government Auditing Standards issued by the Comptroller General of the United
States, the financial statements of the governmental activities, the business-type activities, each major fund, the aggregate
remaining fund information, and the budgetary comparison of the general fund of the Town of Taos (the Town) as of and for the
year ended June 30, 2015, and the related notes to the financial statements, which collectively comprise the Town’s basic financial
statements, and the combining and individual funds and related budgetary comparisons of the Town, presented as supplementary
information, and have issued our report thereon dated November 27, 2015.
Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered the Town’s internal control over financial
reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of
expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the
Town’s internal control. Accordingly, we do not express an opinion on the effectiveness of the Town’s internal control.
A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the
normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A
material weakness is a deficiency, or a combination of deficiencies, in internal control such that there is reasonable possibility that
a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected on a timely basis. A
significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material
weakness, yet important enough to merit attention by those charged with governance.
Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not
designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies and therefore,
material weaknesses or significant deficiencies may exist that were not identified. Given these limitations, during our audit we
did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses
may exist that have not been identified. We did identify certain deficiencies in internal control, described in the accompanying
schedule of findings and questioned costs that we consider to be significant deficiencies as items FS 2014-001 and FS 2015-002.
140
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Town's financial statements are free from material misstatement, we
performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance
with which could have a direct and material effect on the determination of financial statement amounts. However, providing an
opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an
opinion. The results of our tests disclosed instances of noncompliance or other matters that is required to be reported under
Government Auditing Standards and which are described in the accompanying schedule of findings and questioned costs as items
FS 2015-001 and FS 2015-003.
The Town’s Responses to Findings
The Town’s responses to the finding identified in our audit are described in the accompanying schedule of findings and
questioned costs. The Town’s responses were not subjected to the auditing procedures applied in the audit of the financial
statements and, accordingly, we express no opinion on them.
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the result of that
testing, and not to provide an opinion on the effectiveness of the entity’s internal control over compliance. This report is an
integral part of an audit performed in accordance with Government Auditing Standards in considering the Town’s internal control
and compliance. Accordingly, this communication is not suitable for any other purpose.
Accounting & Consulting Group, LLP
Albuquerque, New Mexico
November 27, 2015
141
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142
FEDERAL FINANCIAL ASSISTANCE
143
2700 San Pedro NE Albuquerque NM 87110 www.acgsw.com T: 505.883.2727 F: 505.884.6719
REPORT ON COMPLIANCE FOR EACH MAJOR FEDERAL PROGRAM; REPORT ON INTERNAL CONTROL
OVER COMPLIANCE REQUIRED BY OMB CIRCULAR A-133
INDEPENDENT AUDITORS’ REPORT
Timothy Keller
New Mexico State Auditor
The United States Office of Management and Budget and
The Town Council
Town of Taos
Taos, New Mexico
Report on Compliance for Each Major Federal Program
We have audited the Town of Taos’ (the Town) compliance with the types of compliance requirements described in the 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, 2015. The Town’s major federal programs are identified in the summary of auditors’ results section of
the accompanying schedule of findings and questioned costs.
Management’s Responsibility
Management is responsible for compliance with the requirements of laws, regulations, contracts and grants applicable to its federal
programs.
Auditor’s Responsibility
Our responsibility is to express an opinion on compliance for each of the Town’s major federal programs based on our audit of the
types of compliance requirements referred to above. We conducted our audit of compliance in accordance with auditing standards
generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing
Standards, issued by the Comptroller General of the United States; and 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 whether noncompliance with the types of compliance requirements referred to above that could have a
direct and material effect on a major federal program occurred. An audit includes examining, on a test basis, evidence about the
Town’s compliance with those requirements and performing such other procedures as we considered necessary in the
circumstances.
We believe that our audit provides a reasonable basis for our opinion on compliance for each major federal program. However, our
audit does not provide a legal determination of the Town’s compliance.
Opinion on Each Major Federal Program
In our opinion, the Town complied, in all material respects, with the types of compliance requirements referred to above that could
have a direct and material effect on each of its major federal programs for the year ended June 30, 2015.
144
Report on Internal Control Over Compliance
Management of the Town is responsible for establishing and maintaining effective internal control over compliance with the types
of compliance requirements referred to above. In planning and performing our audit of compliance, we considered the Town’s
internal control over compliance with the types of requirements that could have a direct and material effect on each major federal
program to determine the auditing procedures that are appropriate in the circumstances for the purpose of expressing our opinion on
compliance for each major federal program 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.
Accordingly, we do not express an opinion on the effectiveness of the Town’s internal control over compliance.
A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow
management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct,
noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal
control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such that there is a
reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be
prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency,
or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program
that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those
charged with governance.
Our consideration of internal control over compliance was for the limited purpose described in the first paragraph of this section and
was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant
deficiencies. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses.
However, material weaknesses may exist that have not been identified.
The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over
compliance and the results of that testing based on the requirements of OMB Circular A-133. Accordingly, this report is not
suitable for any other purpose
Accounting & Consulting Group, LLP
Albuquerque, NM
November 27, 2015
145
STATE OF NEW MEXICO
Town of Taos
Schedule of Expenditures of Federal Awards
For the Year Ended June 30, 2015
CFDA
Number Federal Grant Number
Federal
Expenditures
Department of Public Safety
16.523 11-690-12421 $ 115,323
Total U.S. Department of Justice 115,323
14.235 NM0038B6B010901 139,702
Chamisa Area Infrastructure Improvements Phase III 14.228 * 13-C-NR-I-01-G-011 500,000
Total U.S. Department of Housing & Urban Development 639,702
Federal Aviation Administration (FAA)
Runway 12/30 Design 20.106 3-35-0041-028-2012 2,044,947
Memorandum of Agreement Overflight Stipulators 20.106 3-35-0041-027-2012 24,300
Federal Transit - Taos Chile Line Transit Operations 20.500 *NM-03-0041 309,102
Total U.S. Department of Transportation 2,378,349
$ 3,133,374
* Denotes Major Federal Financial Assistance Program
See independent auditors' report
Federal Grantor or Pass-Through Grantor/ Program Title
U.S. Department of Justice Passed Through the State of New Mexico,
Taos County Juvenile Justice
U.S. Department of Housing & Urban Development Passed Through
State of New Mexico, Department of Finance & Administration
Domestic Violence Shelter
See accompanying notes to the schedule of expenditures of federal awards
Total Federal Financial Assistance
U.S. Department of Transportation
146
Schedule VIII
Page 2 of 2
Notes to Schedule of Expenditures of Federal Awards
3. Loan amounts
4. Federally funded insurance
The Town has no federally funded insurance.
5. Non-cash Federal Assistance
The Town did not receive any amount in form of non-cash assistance
Reconciliation of Schedule of Expenditures of Federal Awards to Financial Statements:
3,133,374$
21,719,679
24,853,053$ 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
The Town did not have any loan amounts outstanding at June 30, 2015.
1. Basis of Presentation
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148
STATE OF NEW MEXICO Schedule IX
Town of Taos Page 1 of 6
Schedule of Findings and Questioned Costs
June 30, 2015
Section I – Summary of Auditors’ Results
Financial Statements:
1. Type of auditors’ report issued Unmodified
2. Internal control over financial reporting:
a. Material weaknesses identified? None noted
b. Significant deficiencies identified not considered to be material weaknesses? Yes
c. Noncompliance material to the financial statements noted? None noted
Federal Awards:
1. Internal control over major programs:
a. Material weaknesses identified? None noted
b. Significant deficiencies identified not considered to be material weaknesses? None noted
2. Type of auditors’ report issued on compliance for major programs Unmodified
3. Any audit findings disclosed that are required to be reported in accordance with
Section 510(a) of Circular A-133? None Noted
4. Identification of major programs:
CFDA
Number Federal Program
14.228 Chamisa Area Infrastructure Improvements Phase III
20.500 Federal Transit- Taos Chile Line Transit Operations
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? Yes
149
STATE OF NEW MEXICO Schedule IX
Town of Taos Page 2 of 6
Schedule of Findings and Questioned Costs
June 30, 2015
Section II – Prior Year Audit Findings
Prior Year Audit Findings
Financial Statement Findings
FS 2010-001 Design Deficiencies in Internal Control
over Financial Reporting (Significant Deficiency) Resolved
FS 2012-001 Weakness in Design Related to Internal Control
over Receipts (Significant Deficiency) Resolved
FS 2014-001 Consumable Inventory Controls (Significant
Deficiency) Repeated
FS 2014-002 Compliance over Travel and Per Diem (Other
Matter) Resolved
FS-2014-003 Social Security Administration (Other
Matter) Resolved
150
STATE OF NEW MEXICO Schedule IX
Town of Taos Page 3 of 6
Schedule of Findings and Questioned Costs
June 30, 2015
Section III – Financial Statement Findings and Questioned Costs
FS 2014-001 Consumable Inventory Controls (Significant Deficiency)
Condition: During walk-through procedures performed due to risk assessment procedures it was noted that the Town
has purchased bulk inventory to have on-hand in the Public Works department in the amount of $45,720 and the
Town has not implemented any controls over inventory. We also noted there is no procedure in place in regards to
consuming inventory on hand or tracking inventory in any system.
Currently the Town does take some steps currently to monitor consumable inventory, but must achieve all five
components of the COSO integrated framework for internal controls to address this finding.
Criteria: Sections 6-5-1 through 6-5-6 NMSA, 1978 require internal accounting controls designed to prevent
accounting errors and violations of state and federal laws and rules related to financial matters.
Effect: Without proper inventory controls, the Town cannot verify what inventory they have on hand or is available
for use. In addition, inventory may be misappropriated without management knowledge.
Cause: The Town in prior years has not purchased large amounts of inventory to maintain on-hand. Due to the
timing of the inventory being purchased at year end the Town did not have time to fully implement controls for
inventory and inventory procedures.
Auditors’ Recommendations: We recommend the Town develop and implement policies and procedures designed to
prevent or detect possible misstatements in its inventory as well as train individuals in the responsible departments
the proper maintenance and handling of inventory.
Agency’s Response: Management agrees with the auditor’s recommendations. We will continue working with the
Department’s in finalizing the consumable inventory control; including the development of policies and procedures.
To date we have met with all department managers to explain the finding for consumable inventory controls, issued a
standardized excel workbook for the Department’s to use in tracking of consumable inventory and met with the
Finance Audit Committee on their recommendations to address this finding. As it relates to the $45,720 the Fixed
Assets Clerk/Finance Assistant went out in March 2015 and identified with the supervisor of Public Utilities all of the
items on the original list and verified what had been used based on the work orders that each division records. They
do report to their supervisor on a weekly basis on their work orders including materials. Currently the Town does take
some steps currently to monitor consumable inventory, but must achieve all five components of the COSO integrated
framework for internal controls to address this finding. Responsible positions: Public Works Director, Facilities
Director, Youth & Family Center Director, Fire Department Chief , Police Department Chief, Human Resources
Director, Library Director, Information Technology Director, and Special Events/Visitor Center. Resolution of this
finding is expected to be by June 30, 2016.
151
STATE OF NEW MEXICO Schedule IX
Town of Taos Page 4 of 6
Schedule of Findings and Questioned Costs
June 30, 2015
FS 2015-001— Insufficient Controls over Program Income (Finding that does not rise to level of significant
deficiency)
Condition: During our review of the Cash Count Log Sheet for Program Income, ACG noted that in all five cases,
controls were not implemented. The Cash count log lacked the supervisor review. It was also noted in all five sample
items tested that the cash count logs were not dated. The employees bringing the cash from the buses to the utility
building for count did not date and sign the log. There was no record of when the cash was actually counted, or by
whom. The cash collection and counting technology was not capable of differentiating between legal tender and
foreign objects, leading to inaccurate counts and a reliance on bank personnel for accurate program income recording.
Criteria: The Town of Taos shall establish and maintain a Program Income management program and related
internal controls to ensure that income generated is being accurately recorded and deposited in the Bank and in
compliance with the Office of Management and Budget Circular A-133 and applicable federal and state laws and
regulations.
Effect: Due to the lack of supervisor review of the Cash Count Log Sheet, this leads to a lack of accountability and as
a result, the Town of Taos lacks is recording unverified income. In addition, income recorded was not accurate until
adjusted by the bank.
Cause: The insufficient controls over program income is due to failure of management to effectively implement the
control system in place as to ensuring that the cash count is being reviewed, signed and dated.
Auditors’ Recommendation: We recommend that the Town of Taos ensures that internal controls requiring review of
cash count log and recount of Cash deposited are implemented and operating effectively.
Agency’s Response: Management agrees with the auditors’ recommendations. We currently have a control system in
place to ensure that the cash count is being reviewed, signed and dated. In this instance we had a shortage of staff
from the department depositing the cash. The fill-in staff was not familiar with the controls in place for cash
collection. In the future the Town needs to take the appropriate measures to make sure all managers, supervisors and
staff are trained in the event of staff absence or lack thereof and will be implemented by March 1, 2016 and will be
implemented by the Finance Director. This program income was from the Transportation Department which is no
longer operated by the Town. Responsible position: Public Works Office Manager.
152
STATE OF NEW MEXICO Schedule IX
Town of Taos Page 5 of 6
Schedule of Findings and Questioned Costs
June 30, 2015
FS 2015-002 Segregation of Duties and Improper Access of IT (Significant Deficiency)
Condition: During our walk-through procedures performed over Information Technology, it was noted that the Town
did not maintain proper segregation of duties regarding control of logical access. The Town has one employee
approving and modifying logical access levels or rights to In-Code financial system. In addition we noted, the Town
did not have proper server room controls to safeguard assets or fire suppression in place.
Criteria: The COSO (Committee of Sponsoring Organizations of the Treadway Commission), the generally accepted
framework for internal controls, specifies the elements of a strong internal control system which includes IT controls.
These elements include the specific control activities themselves which protect the IT system and help prevent, or
detect and correct errors in the system. General IT control activities are essential to ensure efficient, reliable,
protected performance of an IT system.
Effect: Without effective internal controls the Town is at risk of providing improper access without a second level
review and also at risk of loss of data and IT equipment without proper server room controls.
Cause: The Town has not updated and reviewed its IT policies.
Auditors’ Recommendations: We recommend that the Town implement a process to govern access level changes
where access is approved by the Finance Director and implemented by the IT Department. It is recommended that
the Finance Director not have the ability to set rights for In-Code. Only the IT Department should have the ability to
set rights for In-Code. The IT Department should never modify access rights without written instruction and
approval from Finance. In addition we recommend that the Town give all employees who are authorized server room
access their own unique code for entry. It is recommended that the Town install a fire suppression system or place
fire extinguishers in the server room
Agency’s Response: Management agrees with the auditors’ recommendations. IT and Finance Director will work on
implementing a process to govern access level changes by January 2016. At this time we are in the process of
procuring a fire suppression system for the server room which is to be implemented by the Facilities Director by
September 30, 2016.
153
STATE OF NEW MEXICO Schedule IX
Town of Taos Page 6 of 6
Schedule of Findings and Questioned Costs
June 30, 2015
FS 2015-003 Small Purchases (Finding that does not rise to level of significant deficiency)
Condition: During our testwork of “small purchases” that do not meet the threshold for a formal bid or proposal, we
noted that the Town is not following their internal purchasing policy for maintenance of respondents. During review
of small purchases it was noted in one instance no written responses from other vendors were present nor memo to
Procurement Office describing steps taken to obtain responses if none were received.
Criteria: According to Town written “Town of Taos Purchasing Policy”, Section IV- Procurement Methods, it was
noted that professional services up to $50,000 and tangible goods valued at less than $20,000 “The Town shall obtain
reasonable number of responses for the procurement of professional services based on the same scope of work and
taking into consideration such factors as the respondents’ qualifications, experience, references, and price. If fewer
than three qualified responses are obtainable using the procedure set forth above, the procurement may be made and a
memo shall be written to the Procurement Officer describing the steps taken to obtain the responses. Such memo
shall be retained as part of the procurement file.”
Effect: Improper maintenance of written responses received or memo to Procurement Officer describing steps taken
could lead individuals or those who inspect procurement files to conclude the Town is not following procurement
procedures.
Cause: The current service contract expired and as a result the Town procured services under an “temporary”
condition, but it was in effect for the entire fiscal year 2015.
Auditors’ Recommendations: We recommend the Town follow all requirements put forth by the Town in regards to
procurement and receive training on State requirements of procurement.
Agency’s Response: Management agrees with the auditors’ recommendations. During this audit period the Finance
Department was short staffed and was not able to procure this service in a timely manner. Since then we have done
an advertised request for proposal for said services. At this time we also have a certified procurement officer on staff
as required by the State of New Mexico and have taken the necessary steps to hire on an additional procurement
officer to assist with the procurement demands at the Town. Resolution is expected to be as of June 30, 2016.
Responsible positions: Finance Department and Department Directors.
FINDINGS – FEDERAL AWARDS
None noted
154
STATE OF NEW MEXICO
Town of Taos
Other Disclosures
June 30, 2015
OTHER DISCLOSURES
Exit Conference
An exit conference was held on December 10, 2015. In attendance were the following:
Representing the Town of Taos:
Daniel Barrone Mayor
George “Fritz” Hahn Councilor
Richard Bellis Town Manager
Marietta Fambro Finance Director
Representing Accounting & Consulting Group, LLP:
Ray Roberts, CPA Partner
Auditor Prepared Financial Statements
Accounting and Consulting Group, LLP prepared the GAAP-basis financial statements and footnotes of the Town of Taos from
the original books and records provided to them by the management of the Town. The responsibility for the financial statements
remains with the Town.
155