2013 Audit Report
State of New Mexico
Town of Taos
Annual Financial Report
June 30, 2013
A LAMOGORDO ¤ ALBUQUERQUE ¤ CARLSBAD ¤ C LOVIS ¤ HOBBS ¤ ROSWELL ¤ LUBBOCK, TX
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2
INTRODUCTORY SECTION
3
STATE OF NEW MEXICO
Town of Taos
Table of Contents
June 30, 2013
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 30
Statement of Net Position-Proprietary Funds D-1 31
Statement of Revenues, Expenses and
Changes in Net Position-Proprietary Funds D-2 32
Statement of Cash Flows –Proprietary Funds D-3 33
Statement of Fiduciary Assets and Liabilities –Agency Funds E-1 35
NOTES TO THE FINANCIAL STATEMENTS 36-64
SUPPLEMENTARY INFORMATION
Statement
Nonmajor Governmental Fund Descriptions 66-69
COMBINING AND INDIVIDUAL FUND STATEMENTS AND SCHEDULES
Combining Balance Sheet –Nonmajor Governmental Funds A-1 70-75
Combining Statement of Revenues, Expenditures and Changes in
Fund Balances – Nonmajor Governmental Funds A-2 76-81
Statement of Revenues, Expenditures and Changes in Fund Balance –
Budget (GAAP Basis) and Actual
Governmental Funds:
Fire Protection Special Revenue Fund B-1 82
Recreation Special Revenue Fund B-2 83
Lodger’s Tax Special Revenue Fund B-3 84
Local Government Correction Special Revenue Fund B-4 85
Law Enforcement Protection Special Revenue Fund B-5 86
Civic Center Special Revenue Fund B-6 87
Domestic Violence Shelter Special Revenue Fund B-7 88
Public Transportation Special Revenue Fund B-8 89
Community Grants Special Revenue Fund B-9 90
Municipal Road Gasoline Tax Special Revenue Fund B-10 91
¼ Cent Municipal Gross Receipts Tax Special Revenue Fund B-11 92
4
STATE OF NEW MEXICO
Town of Taos
Table of Contents
June 30, 2013
SUPPLEMENTARY INFORMATION (CONTINUED)
Statement/Schedule Page
Statement of Revenues, Expenditures and Changes in Fund Balance –
Budget (GAAP Basis) and Actual
Communications Special Revenue Fund B-12 93
2009 NMFA PPRF Disadvantage Program- Eco Park Debt Service Fund B-13 94
2008 Gross Receipts Tax Revenue Bond Retirement Debt Service Fund B-14 95
NMFA Debt Service Reserve Eco Park Debt Service Fund B-15 96
2007 NMFA Land Purchase Debt Service Fund B-16 97
2011 PPRF Street Improvement Debt Service Fund B-17 98
2011 PPRF Street Improvement Reserve Debt Service Fund B-18 99
Facilities Improvements Capital Projects Fund B-19 100
Capital Projects Capital Projects Fund B-20 101
Airport Construction Capital Projects Fund B-21 102
Enhanced 911 Capital Projects Fund B-22 103
Vehicle Replacement Capital Projects Fund B-23 104
1994 Gross Receipts Tax Revenue Bond Acquisition Capital Projects Fund B-24 105
1999 Gasoline Tax Acquisition Capital Projects Fund B-25 106
Statement of Revenues, Expenses and Changes in Net Position –
Budget (GAAP Basis) and Actual –Proprietary Funds
Water and Sewer Fund B-26 107
Solid Waste Fund B-27 108
Taos Regional Landfill Fund B-28 109
SUPPORTING SCHEDULES
Schedule of Deposit and Investment Accounts I 112-113
Schedule of Collateral Pledged by Depository for Public Funds II 114
Schedule of Changes in Fiduciary Assets and Liabilities - Agency Funds III 115
Schedule of Joint Powers Agreements IV 116-117
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 120-121
FEDERAL FINANCIAL ASSISTANCE
Report on Compliance for Each Major Federal Program; Report on Internal
Control over Compliance 124-125
Schedule of Expenditures of Federal Awards V 126-127
Schedule of Findings and Questioned Costs VI 128-132
OTHER DISCLOSURES 133
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6
STATE OF NEW MEXICO
Town of Taos
Official Roster
June 30, 2013
Town Council
Name Title
Darren Cordova Mayor
Andrew Gonzales
Mayor Pro Tem
Michael A. Silva Councilor
Rudy Abeyta Councilor
Frederick Peralta Councilor
Administration
Oscar Rodriguez
Abigail Adame
Town Manager
Assistant Town Manager
Marietta Fambro Finance Director
Renee Lucero Town Clerk
Richard Chavez
C. Brian James
Municipal Judge
Town Attorney
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8
FINANCIAL SECTION
9
Accounting & Consulting Group, LLP
Certified Public Accountants
INDEPENDENT AUDITORS’ REPORT
Hector Balderas
New Mexico State Auditor
The United States Office of Management and Budget and
The Town Council
Town of Taos
Taos, New Mexico
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, 2013, 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, 2013, 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.
10
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, 2013, and the respective changes in financial position and where applicable, cash flows thereof and the
respective budgetary comparison for the general fund for the year then ended in accordance with accounting principles generally
accepted in the United States of America. In addition, in our opinion, the financial statements referred to above present fairly, in all
material aspects, the respective financial position of each nonmajor governmental fund as of June 30, 2013, 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 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 and Supporting
Schedules I through IV required by 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 I through IV required by 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 I through IV required by 2.2.2
NMAC are fairly stated, in all material respects in relation to the basic financial statements taken as a whole.
The introductory section 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 October 15, 2013, 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
October 15, 2013
11
State of New Mexico
Town of Taos
Management’s Discussion and Analysis
June 30, 2013
We are pleased to present the Town of Taos’s financial statements for the fiscal year ended June 30, 2013. 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 $79,033,767 (net position). Of this
amount, $6,187,493 (unrestricted net position) is available to meet the government’s ongoing obligations to its citizens and
creditors.
The Town’s total net position increased by $1,509,891 during the fiscal year. The majority of this overall increase is due to
charges for services, operating and capital grants and a decrease in overall expenses.
As of June 30, 2013, the Town’s governmental funds reported combined ending net position balances of $49,017,580. Of this
total, $3,904,751 is designated for debt service and capital projects.
At the close of the current fiscal year, the unreserved fund balance for the general fund was $926,270, amounting to 10 percent
or 30 days of total general government expenditures.
The Town of Taos’ total debt decreased during the year due to greater principal payments being paid. The Town acquired
additional debt in the amount of $397,390. Compensated absences have decreased from the prior year. The Town paid
$1,587,685 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.
12
State of New Mexico
Town of Taos
Management’s Discussion and Analysis
June 30, 2013
Governmental Funds. Governmental funds are used to account for essentially the same functions reported as governmental activities in
the government-wide financial statements. However, unlike the government-wide financial statements, governmental fund financial
statements focus on daily inflows and outflows of spendable resources, as well as on balances of spendable resources available at the
end of the fiscal year. Such information may be useful in determining what financial resources are available in the near future to finance
the Town’s programs.
Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the
information presented for governmental funds with similar information presented for governmental activities in the government-wide
financial statements. By doing so, readers may better understand the long-term impact of the government’s near term financing
decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in
fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities.
The Town of Taos maintains twenty-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 36-64 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 70-81 of this report.
13
State of New Mexico
Town of Taos
Management’s Discussion and Analysis
June 30, 2013
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 $79,033,767 at the close of the current
fiscal year.
The significant portion of the Town of Taos’ net position represents the Town’s investment of $64,628,128 in capital assets (e.g., land
improvements, buildings, infrastructure and machinery & equipment), less any related outstanding debt used to acquire those assets.
The Town of Taos uses these capital assets to provide services to its citizens, so these assets are not available for future spending.
Although the Town of Taos’ investment in its capital assets is reported net of related debt, it should be noted that the resources needed
to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities.
Governmental Business-Type
Activities Activities Total
Assets
Current and other assets 7,284,040$ 5,538,502$ 12,822,542$
Restricted cash, cash equivalents & investments 1,518,544 3,284,810 4,803,354
Bond issuance costs and discount 155,527 - 155,527
Capital assets, net of accumulated 49,979,191 28,796,847 78,776,038
depreciation
Total assets 58,937,302 37,620,159 96,557,461
Liabilities
Current Liabilities 1,452,800$ 1,015,670$ 2,468,470$
Non-current liabilities 8,466,922 6,588,302 15,055,224
Total liabilities 9,919,722 7,603,972 17,523,694
Net Position
Net investment in capital assets 41,096,710 23,531,418 64,628,128
Restricted 4,933,336 3,284,810 8,218,146
Unrestricted 2,987,534 3,199,959 6,187,493
Total net position 49,017,580$ 30,016,187$ 79,033,767$
Total Liabilities and Net Position 58,937,302$ 37,620,159$ 96,557,461$
June 30, 2013
A portion of the Town of Taos’ governmental restricted net position of $4,933,336 (10 percent) represents resources that are subject to
restrictions related to covenants arising from the Town’s long-term debt issuance and capital projects. The remaining balance of
unrestricted net position, $2,987,534 may be used to meet the government’s ongoing obligations to citizens and creditors.
At the end of the current fiscal year, the Town of Taos is able to report positive balances in all categories of net position for both
governmental and business-type activities.
14
State of New Mexico
Town of Taos
Management’s Discussion and Analysis
June 30, 2013
Analysis of Changes in Net Position
The Town’s net position increased by $1,509,891 during the fiscal year. This increase is primarily the result of a increased charge for
services, grant revenues and other taxes during the fiscal year
Governmental Business-type
Revenues Activities Activities Total
Program revenues:
Charges for service 1,209,168$ 5,308,620$ 6,517,788$
Operating grants and contributions 1,287,932 - 1,287,932
Capital grants and contributions 1,564,921 1,624,150 3,189,071
General revenues:
Property taxes, levied for general purposes 978,102 - 978,102
Gross receipts taxes 9,537,350 449,504 9,986,854
Gasoline and auto distribution taxes 387,416 - 387,416
Other taxes 1,341,373 - 1,341,373
Interest income (loss)8,095 26,826 34,921
Miscellaneous income 452,306 19,554 471,860
Transfers 13,616 (13,616) -
Total Revenues 16,780,279 7,415,038 24,195,317
Program expenses:
General government 7,004,998$ -$ 7,004,998$
Public safety 3,135,666 - 3,135,666
Public works 3,443,767 - 3,443,767
Culture and recreation 2,227,516 - 2,227,516
Health and welfare 728,283 - 728,283
Interest on long-term debt 310,125 - 310,125
Joint water and sewer - 4,004,257 4,004,257
Solid waste - 1,156,585 1,156,585
Taos Regional Landfill - 674,229 674,229
Total Expenses 16,850,355 5,835,071 22,685,426
Change in net position (70,076) 1,579,967 1,509,891
Net Position, beginning 49,087,656 28,436,220 77,523,876
Net Position, ending 49,017,580$ 30,016,187$ 79,033,767$
For the Year Ended June 30, 2013
Changes in Net Assets
15
State of New Mexico
Town of Taos
Management’s Discussion and Analysis
June 30, 2013
Governmental activities. Governmental activities decreased the Town of Taos’ net position by $70,076, primarily as the result of
increase in grant revenues and revenues over expenditures was at a much better position than last year with net position of a $2,852,916
decrease.
Tax revenues account for $12,244,241 or 73 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 $416,384 or 3 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 $1,209,168 or 7 percent of total governmental revenues. These
charges are for fees, fines and forfeitures, and licenses and permits.
Business-type activities. Business-type activities increased the Town’s net position by $1,579,967.
The Town’s direct charges to users of business-type services made up $5,308,620 or 72 percent of total business-type revenues. These
charges are for water and sewer services, and water and sewer connection fees. These direct charges for service increased by $289,243
from the previous year due to the third year of a 5-year rate adjustment for water and sewer services.
The Town received $1.6 million in capital grant revenues along with an increase in charges for services and increased expenditures
which contributed to the overall increase in net position by $1,579,967. This is a decrease from the previous year in the amount of
$524,537.
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,
unreserved fund balance may serve as a useful measure of a government’s net resources available for spending at the end of the fiscal
year. Types of Governmental funds reported by the Town include the General Fund, Special Revenue Funds, Debt Service Funds and
Capital Projects Funds.
Revenues for governmental functions overall totaled approximately $16,831,229 in the fiscal year ended June 30, 2013, which
represents an increase of $2,023,489 from the fiscal year ended June 30, 2012. This is largely due to the increase in property taxes, state
operating and capital grants, and miscellaneous insurance claim payments. Expenditures for governmental functions, totaling
$17,104,178 decreased by approximately $1,570,970 from the fiscal year ended June 30, 2012. This is largely due to the decrease in
expenditures across the governmental functions with the exception of public safety. In the fiscal year ended June 30, 2013, expenditures
for governmental functions exceeded revenues by approximately $(272,949).
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, unreserved fund balance of the general fund was $926,270.
The fund balance of the Town of Taos’ general fund increased by $178,557 during the current fiscal year, due to an increase in revenue
particularly property taxes and a decrease in expenditures. Overall, the general fund’s performance resulted in revenues over
expenditures in the fiscal year ended June 30, 2013 of $922,959 an increase of $519,321 over the comparable figure from the prior year
of $403,638. The Town’s overall financial position improved with a mid-course adjustment to budgeted expenditures in anticipation of
declining gross receipt taxes. These taxes improved at the end of the exercise leaving the Town in a better position than originally
projected.
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 $3,199,959. The total increase in net position for the
enterprise funds was $1,579,967. Factors concerning the finances of this fund have been addressed previously in the discussion of the
Town’s business-type activities.
16
State of New Mexico
Town of Taos
Management’s Discussion and Analysis
June 30, 2013
Fiduciary Funds. The Town maintains fiduciary funds for the assets associated with bid bonds, street cuts permits and recreation
deposits. Changes to the fiduciary funds were immaterial for the fiscal year.
General Fund Budgetary Highlights
Town budgets reflect the same pattern as seen in the revenue and expenditures of the Town. The State of New Mexico budget process
is defined under state law and regulation. To enhance the process of developing a budget at the Town level, Taos utilizes goals and
objectives defined by the Town Council, community input meetings, long term plans and input from various staff groups to develop the
Town budget. Town defines its priorities through this process.
GASB Statement No. 34 does not require a statement presenting the overall result of the budget for each year; however, all major
budgetary funds are required to be reported as a separate statement.
The following table examines the summary budget performance of the general fund for the fiscal year ending June 30, 2013. 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 reduction of expenditures. Actual general fund expenditures were $627,826 less than budgeted. This was primarily due to
general governmental favorable variance of $411,857. The difference between actual expenditures and budgeted expenditures is due to
various across-the-board cuts made in anticipation of lower than actual gross receipts tax over the course of the fiscal year.
Budget Amounts
Original Final
Expenditures:
General government 4,923,885$ 4,779,165$ 4,367,308$ 411,857$
Public safety 3,047,334 2,928,145 2,857,546 70,599
Public works 1,003,156 994,629 926,527 68,102
Culture and recreation 1,516,901 1,467,990 1,395,617 72,373
Capital outlay 6,000 4,895 - 4,895
Total Expenditures 10,497,276$ 10,174,824$ 9,546,998$ 627,826$
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, 2013 amount to
$78,776,038 (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 decreased $406,743 for governmental
activities and $991,976 for business-type activities (net of accumulated depreciation).
The significant additions to capital assets during the year were as follows:
$2,242,018 of additions to governmental infrastructure and equipment for completion and/or purchase of the following: 1) Fire
Department – 2013 Pierce International Pumper with equipment and 2013 Pierce Saber Pumper with equipment, 2) Public
Works – Genie Z Boom Lift, Del Norte Lane and Tomas Court Street Improvements, Chamisa Phase II Construction, and (3)
2013 Eldorado Elite busses for Transportation.
$10,443,534 of additions to business-type infrastructure were from reallocating construction in progress for upgrades to the
Wastewater Treatment Plant and the Recycle Center Shed Expansion into service. Total amount of the Wastewater Treatment
Plant project after final completion cost was $10,186,347.
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State of New Mexico
Town of Taos
Management’s Discussion and Analysis
June 30, 2013
Capital Asset and Debt Administration (continued)
Town of Taos's Capital Assets, Net of Depreciation
June 30, 2013
Governmental Business-like
Activities Activities Total
Land 6,277,809$ 262,422$ 6,540,231$
Constuction in progress 1,164,072 709,901 1,873,973
Land improvements 7,377,460 104,895 7,482,355
Buildings and improvements 33,838,446 4,656,981 38,495,427
Machinery and Equipment 16,477,088 8,911,845 25,388,933
Infrastructure 50,723,971 32,264,584 82,988,555
Total capital assets 115,858,846 46,910,628 162,769,474
Less: accumulated depreciation (65,879,655) (18,113,781) (83,993,436)
Total property, plant and equipment, net
of accumulated depreciation 49,979,191$ 28,796,847$ 78,776,038$
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
$16,475,071. There were no additions to long term debt during the year.
Town of Taos's Outstanding Debt
June 30, 2013
Governmental Business-type
Activities Activities Total
Revenue Bonds 5,245,000$ 2,009,600$ 7,254,600$
NMFA amd RUS Loans 3,619,481 3,255,829 6,875,310
USDA Contract Payable 18,000 - 18,000
Compensated absences 594,635 55,505 650,140
Landfill Closure Liability - 1,677,021 1,677,021
Total long-term liabilities 9,477,116$ 6,997,955$ 16,475,071$
See Note 7 in the accompanying Notes to the Financial Statements for further information regarding the Town of Taos’ long-term debt.
The Town knows of no currently known facts, decisions or conditions that are expected to have a significant effect on financial position
or results of operations.
18
State of New Mexico
Town of Taos
Management’s Discussion and Analysis
June 30, 2013
REQUESTS FOR INFORMATION
This financial report is designed to provide a general overview of the Town of Taos’ finances for all of those with an interest in the
government’s finances. Questions concerning any of the information provided in this report or requests for additional financial
information should be addressed to the Town of Taos – Finance Director, Town of Taos, 400 Camino de la Placita, Taos, New Mexico,
87571, (575) 751-2024.
19
(This page intentionally left blank)
20
BASIC
FINANCIAL STATEMENTS
21
Governmental
Activities
Business-type
Activities Total
Assets
Current assets
Cash and cash equivalents 2,341,076$ 3,006,511$ 5,347,587$
Investments 2,632,280 1,636,951 4,269,231
Receivables:
Property taxes 181,051 - 181,051
Other taxes 1,835,823 - 1,835,823
Due from other governments 291,316 42,975 334,291
Customer receivables, net - 854,559 854,559
Internal balances 2,494 (2,494) -
Total current assets 7,284,040 5,538,502 12,822,542
Noncurrent assets
Restricted cash and cash equivalents 1,518,544 3,284,810 4,803,354
Bond issuance costs, net of accumulated
amortization of $61,902 155,527 - 155,527
Capital assets 115,858,846 46,910,628 162,769,474
Less: accumulated depreciation (65,879,655) (18,113,781) (83,993,436)
Total noncurrent assets 51,653,262 32,081,657 83,734,919
Total assets 58,937,302$ 37,620,159$ 96,557,461$
STATE OF NEW MEXICO
Primary Government
The accompanying notes are an integral part of these financial statements
June 30, 2013
Statement of Net Position
Town of Taos
22
Exhibit A-1
Governmental
Activities
Business-type
Activities Total
Liabilities
Current liabilities
Accounts payable 203,416$ 273,289$ 476,705$
Accrued payroll 152,202 18,373 170,575
Deposits held in trust for others 5,103 261,088 266,191
Accrued compensated absences 389,502 23,802 413,304
Accrued interest 31,973 53,267 85,240
Current portion of bonds payable 280,000 49,000 329,000
Current portion of loans and contracts payable 390,604 336,851 727,455
Total current liabilities 1,452,800 1,015,670 2,468,470
Noncurrent liabilities
Accrued compensated absences 205,133 31,703 236,836
Accrued landfill closure costs - 1,677,021 1,677,021
Bond premiums, net of accumulated
amortization of $20,930 49,912 - 49,912
Bonds payable 4,965,000 1,960,600 6,925,600
Loans and contracts payable 3,246,877 2,918,978 6,165,855
Total noncurrent liabilities 8,466,922 6,588,302 15,055,224
Total liabilities 9,919,722 7,603,972 17,523,694
Net Position
Net investment in capital assets 41,096,710 23,531,418 64,628,128
Restricted for:
Debt service 457,298 2,300,740 2,758,038
Capital projects 3,447,453 - 3,447,453
Special revenue 1,028,585 - 1,028,585
Landfill - 984,070 984,070
Unrestricted 2,987,534 3,199,959 6,187,493
Total net position 49,017,580 30,016,187 79,033,767
Total liabilities and net position 58,937,302$ 37,620,159$ 96,557,461$
Primary Government
23
Functions/Programs
Expenses
Charges for
Services
Operating
Grants and
Contributions
Capital Grants
and
Contributions
Governmental Activities:
General government 7,004,998$ 1,101,025$ 274,578$ -$
Public safety 3,135,666 - 250,960 -
Public works 3,443,767 - - 1,564,921
Culture and recreation 2,227,516 43,313 - -
Health and welfare 728,283 64,830 762,394 -
Interest on long-term debt 310,125 - - -
Total governmental activities 16,850,355 1,209,168 1,287,932 1,564,921
Business-type Activities:
Water and sewer 4,004,257 3,073,949 - 1,624,150
Solid waste 1,156,585 1,247,203 - -
Taos regional landfill 674,229 987,468 - -
Total business-type activities 5,835,071 5,308,620 - 1,624,150
Total primary government 22,685,426$ 6,517,788$ 1,287,932$ 3,189,071$
General Revenues:
Taxes:
Property taxes, levied for general purposes
Gross receipts taxes
Gasoline and motor vehicle taxes
Franchise taxes
Lodger's taxes
Investment income (loss)
Miscellaneous income
Transfers
Total general revenues
Change in net position
Net position, beginning
Net position, ending
STATE OF NEW MEXICO
Town of Taos
Statement of Activities
For the Year Ended June 30, 2013
The accompanying notes are an integral part of these financial statements
Program Revenues
24
Exhibit A-2
Governmental
Activities
Business-Type
Activities Total
(5,629,395)$ -$ (5,629,395)$
(2,884,706) - (2,884,706)
(1,878,846) - (1,878,846)
(2,184,203) - (2,184,203)
98,941 - 98,941
(310,125) - (310,125)
(12,788,334) - (12,788,334)
- 693,842 693,842
- 90,618 90,618
- 313,239 313,239
- 1,097,699 1,097,699
(12,788,334) 1,097,699 (11,690,635)
978,102 - 978,102
9,537,350 449,504 9,986,854
387,416 - 387,416
419,334 - 419,334
922,039 - 922,039
8,095 26,826 34,921
452,306 19,554 471,860
13,616 (13,616) -
12,718,258 482,268 13,200,526
(70,076) 1,579,967 1,509,891
49,087,656 28,436,220 77,523,876
49,017,580$ 30,016,187$ 79,033,767$
Net (Expense) Revenue and Changes in Net Position
25
Exhibit B-1
Page 1 of 2
General Fund
1999 Gasoline Tax
Acquisition
Other
Governmental
Funds Total
Assets
Cash and cash equivalents 786,591$ 1,589,841$ 1,483,188$ 3,859,620$
Investments 1,266,874 150 1,365,256 2,632,280
Receivables:
Property taxes 181,051 - - 181,051
Other taxes 1,443,340 - 392,483 1,835,823
Due from other governments 42,507 - 248,809 291,316
Due from other funds 2,494 - - 2,494
Total assets 3,722,857$ 1,589,991$ 3,489,736$ 8,802,584$
Liabilities
Accounts payable 129,977$ -$ 73,439$ 203,416$
Accrued payroll 130,939 - 21,263 152,202
Deposits held in trust for others - - 5,103 5,103
Unearned revenue 135,791 - 33,244 169,035
Total liabilities 396,707 - 133,049 529,756
Fund balances
Spendable
Restricted for:
General government - - 331,758 331,758
Public safety - - 63,539 63,539
Culture and recreation - - 305,109 305,109
Public works - - 16,329 16,329
Fire protection - - 265,265 265,265
Health and welfare - - 68,249 68,249
Debt service expenditures - - 449,619 449,619
Capital projects - 1,589,991 1,856,819 3,446,810
Committed for:
Minimum fund balance 795,583 - - 795,583
Subsequent year's expenditures 1,604,297 - - 1,604,297
Unassigned 926,270 - - 926,270
Total fund balances 3,326,150 1,589,991 3,356,687 8,272,828
Total liabilities and fund balances 3,722,857$ 1,589,991$ 3,489,736$ 8,802,584$
June 30, 2013
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 8,272,828$
Bond issuance costs net of accumulated amortization are not a current
financial resource and, therefore, are not reported in the funds.155,527
Capital assets used in governmental activities are not financial resources
and, therefore, are not reported in the funds 49,979,191
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 deferred revenue in the fund financial statements, but are
considered revenue in the Statement of Activities.169,035
Interest on long-term debt is not accrued in the fund financial statements
unless it is due and payable:
Accrued interest (31,973)
Some liabilities, including bonds payable, loans and contracts are not due
and payable in the current period and, therefore, are not reported in the funds:
Accrued compensated absences (594,635)
Bond premiums (49,912)
Bonds payable (5,245,000)
Loans payable (3,619,481)
Contracts payable (18,000)
Total net position of governmental activities 49,017,580$
June 30, 2013
The accompanying notes are an integral part of these financial statements
Governmental Funds
Reconciliation of the Balance Sheet to the Statement of Net Position
27
Exhibit B-2
Page 1 of 2
General Fund
1999 Gasoline Tax
Acquisition
Other
Governmental
Funds Total
Revenues
Taxes
Property 1,022,135$ -$ -$ 1,022,135$
Gross receipts 7,982,179 - 1,555,171 9,537,350
Gasoline and motor vehicle taxes 267,450 - 119,966 387,416
Lodger's Tax - - 942,572 942,572
Other 419,334 - - 419,334
Intergovernmental income .
Federal operating grants - - 150,000 150,000
Federal capital grants - 480,000 919,202 1,399,202
State operating grants 47,740 - 1,090,192 1,137,932
State capital grants - - 165,719 165,719
Charges for services 368,644 - 522,593 891,237
Licenses and fees 296,100 - 21,831 317,931
Investment income (loss)3,952 1,310 2,833 8,095
Miscellaneous 62,423 - 389,883 452,306
Total revenues 10,469,957 481,310 5,879,962 16,831,229
Expenditures
Current
General government 4,367,308 - 949,720 5,317,028
Public safety 2,857,546 - 192,511 3,050,057
Public works 926,527 - 457,144 1,383,671
Culture and recreation 1,395,617 - 853,464 2,249,081
Health and welfare - - 694,874 694,874
Capital outlay - 966,798 2,475,413 3,442,211
Debt service
Principal - - 648,809 648,809
Interest - - 318,447 318,447
Total expenditures 9,546,998 966,798 6,590,382 17,104,178
Excess (deficiency) of revenues over
expenditures 922,959 (485,488) (710,420) (272,949)
Other financing sources (uses)
Transfers in 4,602,220 183,210 3,713,332 8,498,762
Transfers out (5,346,622) - (3,152,140) (8,498,762)
Total other financing sources (uses)(744,402) 183,210 561,192 -
Net change in fund balances 178,557 (302,278) (149,228) (272,949)
Fund balance - beginning of year 3,147,593 1,892,269 3,505,915 8,545,777
Fund balance - end of year 3,326,150$ 1,589,991$ 3,356,687$ 8,272,828$
For the Year Ended June 30, 2013
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 (272,949)$
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 3,442,211
Depreciation expense (3,862,570)
Capital assets reclassification from enterprise funds to governmental funds 13,616
Revenues in the Statement of Activities that do not provide current financial
resources are not reported as revenue in the funds:
Decrease in deferred revenue related to property taxes receivable (44,033)
Decrease in lodger's tax settlement revenue not received within the period of availability (20,533)
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 issuance costs, premiums, discounts, and similar items when
debt is first issued, whereas these amounts are deferred and amortized in the
Statement of Activities:
Amortization of bond issuance costs (12,120)
Decrease in accrued interest 8,322
Decrease in accrued compensated absences 25,307
Amortization of bond premiums 3,864
Principal payments on bonds payable 265,000
Principal payments on loans payable 365,809
Payments on contracts payable 18,000
Change in net position of governmental activities (70,076)$
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, 2013
The accompanying notes are an integral part of these financial statements
29
STATE OF NEW MEXICO Exhibit C-1
Variances
Actual
Favorable
(Unfavorable)
Original Final (GAAP Basis)Final to Actual
Revenues
Taxes
Property taxes 925,019$ 925,019$ 1,022,135$ 97,116$
Gross receipts 8,154,705 7,864,126 7,982,179 118,053
Gas and motor vehicle 241,897 255,932 267,450 11,518
Other 370,650 370,650 419,334 48,684
Intergovernmental income
Federal operating grants 10,000 10,000 - (10,000)
Federal capital grants - - - -
State operating grants 54,680 54,680 47,740 (6,940)
State capital grants - - - -
Charges for services 371,243 368,380 368,644 264
Licenses and fees 248,018 248,018 296,100 48,082
Interest income 5,184 5,184 3,952 (1,232)
Miscellaneous 33,933 57,748 62,423 4,675
Total revenues 10,415,329 10,159,737 10,469,957 310,220
Expenditures
Current
General government 4,923,885 4,779,165 4,367,308 411,857
Public safety 3,047,334 2,928,145 2,857,546 70,599
Public works 1,003,156 994,629 926,527 68,102
Culture and recreation 1,516,901 1,467,990 1,395,617 72,373
Health and welfare - - - -
Capital outlay 6,000 4,895 - 4,895
Total expenditures 10,497,276 10,174,824 9,546,998 627,826
Excess (deficiency) of revenues over expenditures (81,947) (15,087) 922,959 938,046
Other financing sources (uses)
Designated cash (budgeted increase in cash)708,299 759,489 - (759,489)
Transfers in 4,663,843 4,602,221 4,602,220 (1)
Transfers out (5,290,195) (5,346,623) (5,346,622) 1
Total other financing sources (uses)81,947 15,087 (744,402) (759,489)
Net change in fund balance - - 178,557 178,557
Fund balance - beginning of year - - 3,147,593 3,147,593
Fund balance - end of year -$ -$ 3,326,150$ 3,326,150$
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, 2013
The accompanying notes are an integral part of these financial statements
30
Exhibit D-1
Water and
Sewer Solid Waste Total
Assets
Current assets
Cash and cash equivalents 1,798,058$ 571,169$ 637,284$ 3,006,511$
Investments 1,312,450 249,100 75,401 1,636,951
Due from other governments 42,975 - - 42,975
Customer receivables, net 642,596 157,077 54,886 854,559
Total current assets 3,796,079 977,346 767,571 5,540,996
Noncurrent assets
Restricted cash and cash equivalents 2,300,740 - 984,070 3,284,810
Capital assets 41,612,747 1,073,986 4,223,895 46,910,628
Less: accumulated depreciation (16,296,437) (416,568) (1,400,776) (18,113,781)
Total noncurrent assets 27,617,050 657,418 3,807,189 32,081,657
Total assets 31,413,129$ 1,634,764$ 4,574,760$ 37,622,653$
Liabilities and net position
Liabilities
Current liabilities
Accounts payable 159,703$ 95,050$ 18,536$ 273,289$
Accrued payroll 10,971 2,270 5,132 18,373
Meter deposits payable 261,088 - - 261,088
Accrued compensated absences 21,253 2,549 - 23,802
Interfund payable 870 - 1,624 2,494
Accrued interest payable 50,307 - 2,960 53,267
Current portion of bonds payable 49,000 - - 49,000
Current portion of loans and contracts payable 160,464 - 176,387 336,851
Total current liabilities 713,656 99,869 204,639 1,018,164
Noncurrent liabilities
Accrued compensated absences 14,211 - 17,492 31,703
Accrued landfill closure costs - - 1,677,021 1,677,021
Bonds payable 1,960,600 - - 1,960,600
Loans payable 2,465,174 - 453,804 2,918,978
Total noncurrent liabilities 4,439,985 - 2,148,317 6,588,302
Total liabilities 5,153,641 99,869 2,352,956 7,606,466
Net position
Net investment in capital assets 20,681,072 657,418 2,192,928 23,531,418
Restricted for:
Landfill - - 984,070 984,070
Debt service 2,300,740 - - 2,300,740
Unrestricted 3,277,676 877,477 (955,194) 3,199,959
Total net position 26,259,488 1,534,895 2,221,804 30,016,187
Total liabilities and net position 31,413,129$ 1,634,764$ 4,574,760$ 37,622,653$
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, 2013
Proprietary Funds
31
Exhibit D-2
Water and
Sewer Solid Waste Total
Operating revenues
Charges for services 3,073,949$ 1,247,203$ 987,468$ 5,308,620$
Total operating revenues 3,073,949 1,247,203 987,468 5,308,620
Operating expenses
Personnel services 658,499 95,435 291,297 1,045,231
Contractual services 1,224,201 720,665 59,866 2,004,732
Supplies 137,894 6,213 7,520 151,627
Repairs and maintenance 58,642 61,339 97,021 217,002
Utilities 394,568 226,726 6,941 628,235
Depreciation 1,362,718 41,218 182,355 1,586,291
Other costs 31,236 4,989 7,462 43,687
Total operating expenses 3,867,758 1,156,585 652,462 5,676,805
Operating income (loss) (793,809) 90,618 335,006 (368,185)
Non-operating revenues (expenses)
Gross receipts taxes 449,504 - - 449,504
Interest expense (136,499) - (21,767) (158,266)
Interest income 4,037 - 22,789 26,826
Miscellaneous income 3,465 15,963 126 19,554
Total non-operating revenues (expenses)320,507 15,963 1,148 337,618
Income (loss) before transfers and grants (473,302) 106,581 336,154 (30,567)
State capital grants 1,624,150 - - 1,624,150
Transfers in 2,651,830 - 369,464 3,021,294
Transfers out (2,665,446) - (369,464) (3,034,910)
Change in net position 1,137,232 106,581 336,154 1,579,967
Net position, beginning of year 25,122,256 1,428,314 1,885,650 28,436,220
Net position, end of year 26,259,488$ 1,534,895$ 2,221,804$ 30,016,187$
Town of Taos
Statement of Revenues, Expenses and Changes in Net Position
Proprietary Funds
For the Year Ended June 30, 2013
STATE OF NEW MEXICO
The accompanying notes are an integral part of these financial statements
Taos Regional
Landfill
Enterprise Funds
32
Exhibit D-3
Total
Cash flows from operating activities
Cash received from user charges 3,075,907$ 1,248,646$ 937,336$ 5,261,889$
Cash payments to employees for services (676,897) (108,401) (293,528) (1,078,826)
Cash payments to suppliers for goods and services (1,878,942) (1,060,939) (410,915) (3,350,796)
Net cash provided by operating activities 520,068 79,306 232,893 832,267
Cash flows from noncapital financing activities
Gross receipts taxes 449,504 - - 449,504
Miscellaneous income 3,465 15,963 126 19,554
Payments for noncurrent accrued compensated absences 3,053 (2,414) 17,492 18,131
Interfund advances (payments) (13,442) - 3,316 (10,126)
Net cash provided by noncapital
financing activities 442,580 13,549 20,934 477,063
Cash flows from capital and related financing activities
State and federal capital grants 1,624,150 - - 1,624,150
Interest paid (137,699) - (22,570) (160,269)
Proceeds from issuance of long-term debt 397,390 - - 397,390
Principal payments on long-term debt (133,790) - (171,462) (305,252)
Acquisition of capital assets (289,000) (305,315) - (594,315)
Net cash provided (used) by capital and
related financing activities 1,461,051 (305,315) (194,032) 961,704
Cash flows from investing activities
Purchases of investments (2,449) - - (2,449)
Interest on investments 4,037 - 22,789 26,826
Net cash provided by investing activities 1,588 - 22,789 24,377
Net increase (decrease) in cash and cash equivalents 2,425,287 (212,460) 82,584 2,295,411
Cash and cash equivalents - beginning of year 1,673,511 783,629 1,538,770 3,995,910
Cash and cash equivalents - end of year 4,098,798$ 571,169$ 1,621,354$ 6,291,321$
Reconciliation of operating income (loss) to
net cash provided by operating activities:
Operating income (loss)(793,809)$ 90,618$ 335,006$ (368,185)$
Adjustments to reconcile operating income (loss) to
net cash provided by operating activities:
Depreciation 1,362,718 41,218 182,355 1,586,291
Changes in assets and liabilities
Receivables 1,958 1,443 (50,132) (46,731)
Accounts payable (42,652) (41,010) (11,785) (95,447)
Accrued payroll expenses (2,809) 475 171 (2,163)
Current accrued compensated absences (15,589) (13,438) (2,402) (31,429)
Meter deposits 10,251 - - 10,251
Net cash provided by operating activities 520,068$ 79,306$ 232,893$ 832,267$
Statement of Cash Flows
For the Year Ended June 30, 2013
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
33
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34
Exhibit E-1
Assets
Cash 9,985$
Investments 60,000
Total assets 69,985$
Liabilities
Deposits payable 69,342$
Due to other entities 643
Total liabilities 69,985$
Statement of Fiduciary Assets and Liabilities - Agency Funds
Town of Taos
STATE OF NEW MEXICO
June 30, 2013
The accompanying notes are an integral part of these financial statements
35
STATE OF NEW MEXICO
Town of Taos
Notes to the Financial Statements
June 30, 2013
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. T he financial statements and notes are the representation of Town’s management
who is responsible for their integrity and objectivity. The financial statements of the Town have been prepared
in conformity with accounting principles generally accepted in the United States of America (GAAP) as applied
to government units.
During the year ended June 30, 2013, the Town adopted Governmental Accounting Standards Board (GASB)
Statements No. 60 through 63. GASB Statement No. 60, Accounting and Financial Reporting for Service
Concession Arrangements. The Town does not have any Service Concession Arrangements. GASB Statement
No.61, The Financial Reporting Entity: Omnibus—an amendment of GASB Statements No. 14 and No.34,
modifies certain requirements for inclusion of component units in the financial reporting entity. GASB
Statement No. 62, Codification of Accounting and Financial Reporting Guidance Contained in Pre-November
30, 1989 FASB and AICPA Pronouncements, which incorporates into the GASB’s authoritative literature
certain accounting and financial reporting guidance that is included in FASB and AICPA Pronouncements
issued on or before November 30, 1989, which does not conflict with or contradict GASB pronouncements.
GASB Statement No. 63, Financial Reporting of Deferred Outflows of Resources, Deferred Inflows of
Resources, and Net Position, provides financial reporting guidance for deferred outflows of resources and
deferred inflows of resources
A.Financial Reporting Entity
The financial reporting entity consists of (a) the primary government, (b) organizations for which the
primary government is financially accountable and (c) other organizations for which the nature and
significance of their relationship with the primary government are such that exclusion would cause the
reporting entity’s financial statements to be misleading or incomplete.
In evaluating how to define the Town, for financial reporting purposes, management has considered
all potential component units. T he decision to include any potential component units in the financial
reporting entity was made by a pplying the criteria set forth in GASB Statements No. 14, as amended
by GASB Statement No. 39 and GASB Statement No. 61. B lended 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.
36
STATE OF NEW MEXICO
Town of Taos
Notes to the Financial Statements
June 30, 2013
NOTE 1.Summary of Significant Accounting Policies (continued)
A.Financial Reporting Entity (continued)
The basic-but not the only-criterion for including a potential component unit within the reporting
entity is the governing body’s ability to exercise oversight responsibility. The most significant
manifestation of this ability is financial interdependency. Other manifestations of the ability to
exercise oversight responsibility include, but are not limited to, the selection of governing authority,
the designation of management, the ability to significantly i nfluence 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 t his criterion involves considering whether the activity benefits the government and/or
its citizens.
A third criterion used to evaluate potential component units for inclusion or exclusion from the
reporting entity is the existence of special financing relationships, regardless of whether the
government is able to exercise oversight responsibilities. Finally, the nature and significance of a
potential component unit to the primary government could warrant its inclusion within the reporting
entity.
Based upon the application of these criteria, the Town has no component units, and is not a component
unit of another governmental agency.
B.Government-wide and fund financial statements
The government-wide financial statements (i.e., the statement of net position and the statement of
activities) report information on all of t he nonfiduciary activities of the primary government. F or 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. R evenues, expenses, gains, losses,
assets and liabilities resulting from exchange-like transactions are recognized when the exchange
takes place. Revenues, expenses, gains, losses, assets and liabilities resulting from non-exchange
transactions are recognized in accordance with the requirements of GASB Statement No. 33,
Accounting and Financial Reporting for Non-exchange Transactions.
In the government-wide Statement of Net 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 are reported in three parts –net invested in capital
assets;restricted net positions; and unrestricted net positions.
37
STATE OF NEW MEXICO
Town of Taos
Notes to the Financial Statements
June 30, 2013
NOTE 1.Summary of Significant Accounting Policies (continued)
B.Government-wide and fund financial statements (continued)
The statement of activities demonstrates the degree to which the direct expenses of a given function or
segments are offset by p rogram revenues. Direct expenses are those that are clearly i dentifiable with a
specific function or segment. Program revenues include 1) charges to customers or applicants who
purchase, use, or directly benefit from goods, services, or privileges provided by a given function or
segment and 2) grants and contributions that are restricted to meeting the operational or capital
requirements of a particular function or segment. T axes and other items not properly included among
program revenues are reported instead as general revenues.
Separate financial statements are provided for governmental funds, 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. P roperty taxes, net of estimated refunds,are
recognized as revenues in the year for which they are levied. G rants 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 l iabilities of the current period.
For this purpose, the government considers revenues to be available if they are collected within 60
days of the end of the current fiscal period. Expenditures generally are recorded when a liability is
incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures
related to compensated absences and claims and judgments, are recorded only when payment is due.
Property taxes, franchise taxes, licenses and interest associated with the current fiscal period are all
considered to be susceptible to accrual and so have been recognized as revenues of the current fiscal
period, subject to the availability criterion. Sales and use taxes are classified as derived tax revenues
and are recognized as revenue when the underlying exchange takes place and the revenues are
measurable and available. G rants 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.
Miscellaneous income associated with the current fiscal period is revenue from a insurance proceeds
for settlement of litigation. T hese amounts are from construction projects in which the contractor has
defaulted and through mediation a settlement was agreed upon. T he amount received as a settlement
for the year end June 30, 2013 was $272,000.
38
STATE OF NEW MEXICO
Town of Taos
Notes to the Financial Statements
June 30, 2013
NOTE 1.Summary of Significant Accounting Policies (continued)
C.Measurement focus, basis of accounting, and financial statement presentation (continued)
The Town reports the following major governmental funds:
The General Fund is the government’s primary operating fund. I t 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 1999 Gasoline Tax Acquisition Capital Projects Funds was created to receive bond
proceeds and to account for the capital outlay associated with the bond issue. Authority is
the 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 County. All activities necessary to provide such
services are accounted for in this fund, including, but not limited to administration,
operations, maintenance, financing and related debt service, and billing and collection.
The Taos Regional Landfill Fund is used to account for the activities of the Taos Regional
Landfill including debt repayments, closure and post-closure care estimates as well as
operations and administration.
Additionally, the Town reports the following fund type:
The Fiduciary Fund is purely custodial (assets equal liabilities) and does not involve the
measurement of results of operations. This fund accounts for assets held by the Town in a
trustee capacity 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. E xceptions to this general rule are payments-in-lieu of t axes and other charges
between the government’s enterprise funds and various other functions of the government.
Elimination of these charges wo uld distort the direct costs and program revenues reported in the
Statement of A ctivities. 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.
Program revenues included in the Statement of Ac tivities 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.
39
STATE OF NEW MEXICO
Town of Taos
Notes to the Financial Statements
June 30, 2013
NOTE 1.Summary of Significant Accounting Policies (continued)
C.Measurement focus, basis of accounting,and financial statement presentation (continued)
The Town reports all direct expenses by function in the Statement of Activities. Direct expenses are
those that are clearly identifiable with a function. T he Town does not currently employ i ndirect cost
allocation systems. Depreciation expense is specifically identified by function and is included in the
direct expense of each function. I nterest on general long-term debt is considered an indirect expense
and is reported separately on the Statement of Activities.
Proprietary funds distinguish operating revenues and expenses from non-operating items. O perating
revenues and expenses generally result from p roviding 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. O perating 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, Liabilities and Net Position or Equity
Deposits and Investments: T he Town’s cash and cash equivalents are considered to be cash on hand,
demand deposits and short-term investments with original maturities of t hree months or less from the
date of acquisition.
State statutes authorize the Town to invest in Certificates of Deposit, obligations of the U.S.
Government, and the State Treasurer’s Investment Pool.
Investments for the Town are reported at fair value. The State Treasurer’s Pool operates in
accordance with appropriate state laws and regulations. T he reported value of the pool is the same as
the fair value of the pool shares.
Receivables and Payables: I nterfund activity is reported as loans, services provided, reimbursements
or transfers. L oans 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. T ransfers between governmental or between proprietary
funds are netted as part of the reconciliation to the government-wide financial statements.
Ad vances between funds, as reported in the fund financial statements, are offset by a fund balance
reserve account in applicable governmental funds to indicate that they are not available for
appropriation and are not expendable available financial resources in the event they are not received
within 60 days of year end.
All receivables are reported at their gross value and, where appropriate, are reduced by the estimated
portion that is expected to be uncollectible. The Town estimates the allowance for uncollectible
accounts based off the days delinquent. T he 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.
40
STATE OF NEW MEXICO
Town of Taos
Notes to the Financial Statements
June 30, 2013
NOTE 1.Summary of Significant Accounting Policies (continued)
D.Assets, Liabilities and Net Position or Equity (continued)
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. T he taxes attach as an enforceable lien on property thirty (30) days thereafter,
at which time they become delinquent. Property taxes are collected by Taos County and remitted
mo nthly to the Town.
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 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. S uch assets are recorded at historical cost
or estimated historical cost if purchased or constructed. Pursuant to the implementation of GASB
Statement No. 34, the historical 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). D onated capital assets are recorded at estimated
fair market value at the date of donation.
The costs of normal maintenance and repairs that do not add to the value of the asset or materially
extend assets lives are not capitalized. 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. I nterest
incurred during the construction phase of capital assets of business-type activities is included as part
of the capitalized value of the assets constructed. There was no interest expense capitalized by the
Town during the current fiscal. No interest wa s included as part of the cost of capital assets under
construction.
Property, plant, and equipment of the primary government are depreciated using the straight line
method over the following estimated useful lives:
Assets Years
Land improvements 20
Buildings and improvements 10-50
Machinery and equipment 5-25
Infrastructure 10-50
41
STATE OF NEW MEXICO
Town of Taos
Notes to the Financial Statements
June 30, 2013
NOTE 1.Summary of Significant Accounting Policies (continued)
D.Assets, Liabilities and Net Position or Equity (continued)
Deferred Revenues: There are two sets of circumstances in which the Town accrues deferred
revenue.
Unearned revenue -Under both the accrual and the modified accrual basis of accounting,
revenue may be recognized only when it is earned. If assets are recognized in connection
with a transaction before the earnings process is complete, those assets must be offset by a
corresponding liability for deferred revenue.
Unavailable revenue –Under the modified accrual basis of a ccounting, it is not enough that
revenue has been earned if it is to be recognized as revenue of the current period. Revenue
must also be susceptible to accrual (it must be both measureable and available to finance
expenditures of the current fiscal period). 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 c orresponding liability for unearned revenue. T he
Town has recorded $135,791 in deferred revenue related to property taxes as well as $33,244
for delinquent lodger’s tax considered “unavailable.”
Compensated Absences: The Town’s employees earn personal leave at a rate of 22 to 27 days per
year based on years of service. E mployees can carry o ver 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 i t. I n prior years, substantially all of the related expenditures have been
liquidated by the general fund. Amo unts 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 O bligations: I n the government-wide financial statements, and proprietary fund types in
the fund financial statements, long-term d ebt and other long-term o bligations are reported as liabilities
in the applicable governmental activities, business-type activities, or proprietary fund type statement
of net position. B ond premiums and discounts, as well as issuance costs, 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. B ond 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.
42
STATE OF NEW MEXICO
Town of Taos
Notes to the Financial Statements
June 30, 2013
NOTE 1.Summary of Significant Accounting Policies (continued)
D.Assets, Liabilities and Net Position or Equity (continued)
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, 2013, the Town did not have any fund balances in
nonspendable form.
Restricted and Committed Fund Balance: At June 30, 2013, the Town has presented restricted
fund balance on the governmental funds balance sheet in the amount of $331,758 for various general
government operations as restricted by enabling legislation, $63,539 for public safety, $305,109 for
culture and recreation, $16,329 for public works, $265,265 for fire protection, $68,249 for health and
welfare, $449,619 for debt service expenditures, and $3,446,810 for capital projects. The Town has
committed fund balance of the general fund for subsequent year’s expenditures in the amount of
$1,604,297. The details of these fund balance items are located on the governmental funds balance
sheet as detailed on page 26.
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, 2013 for the
Town is $795,583.
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 66-69.
c. Unrestricted net position:Net position that does not meet the definition of “restricted” or
“Net Investment in Capital Assets.”
43
STATE OF NEW MEXICO
Town of Taos
Notes to the Financial Statements
June 30, 2013
NOTE 1.Summary of Significant Accounting Policies (continued)
D.Assets, Liabilities and Net Position or Equity (continued)
Interfund Transactions: Quasi-external transactions are accounted for as revenues, expenditures or
expenses. T ransactions that constitute reimbursements to a fund from expenditures/expenses initially
made from it that are properly 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. N onrecurring 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 and depreciation on capital assets.
NOTE 2.Stewardship, Compliance and Accountability
Budgetary Information
Annual budgets of the Town are prepared prior to June 1 and must be approved by resolution of the Town
Councilors, and submitted to the Department of Finance and Administration for State approval. Once the
budget has been formally approved, any amendments must also be approved by the Town Council Members
and the Department of Finance and Administration. A separate budget is prepared for each fund. Line items
within each budget may be over-expended; however, it is not legally permissible to over-expend any budget in
total by fund.
Governmental fund budgets are prepared on the GAAP basis, excluding encumbrances, and secure
appropriation of funds for only one year. Carryover funds must be re-appropriated in the budget of the
subsequent fiscal year.
Proprietary fund budgets are prepared on the GAAP basis, excluding encumbrances, and secure appropriation
of funds for only one year. 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 $ (81,947) $ (15,087)
1999 Gasoline Tax Acquisition
Capital Projects Fund $(1,915,019)$(1,915,019)
Nonmajor Governmental Funds $ (2,325,629) $(2,890,045)
Change in net position
Budgeted Funds:
Water and Sewer $ (631,487) $ (956,221)
Solid Waste $ (226,176) $ (260,275)
Taos Regional Landfill $50,950 $69,365
44
STATE OF NEW MEXICO
Town of Taos
Notes to the Financial Statements
June 30, 2013
NOTE 2.Stewardship, Compliance and Accountability (continued)
Budgetary Information (continued)
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 o f 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, 2013.
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.
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, 2013, $6,609,646 of the Town’s deposits of $7,359,646 wa s exposed to custodial credit risk. $5,523,705
was uninsured and collateralized by collateral held by the pledging bank’s trust department, not in the Town’s
name,and $1,085,940 wa s uninsured and uncollateralized.
45
STATE OF NEW MEXICO
Town of Taos
Notes to the Financial Statements
June 30, 2013
NOTE 3.Deposits and Investments (continued)
Amount of deposits 4,784,655$ 2,574,991$ 7,359,646$
FDIC Coverage (500,000) (250,000) (750,000)
Total uninsured public funds 4,284,655 2,324,991 6,609,646
4,284,655 1,239,051 5,523,706
Uninsured and uncollateralized -$ 1,085,940$ 1,085,940$
Collateral requirement
(50% of uninsured funds)2,142,328$ 1,162,496$ 3,304,824$
Pledged Collateral 4,475,471 1,239,051 5,714,522
Over (Under) collateralized 2,333,143$ 76,555$ 2,409,698$
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 II in this report. The types of collateral allowed are limited to
direct obligations of the United States Government and all bonds issued by any agency, district or political
subdivision of the State of New Mexico.
Reconciliation to the Statement of Net Position:
Cash and cash equivalents per Exhibit A-1 5,347,587$
Restricted cash and cash equivalents per Exhibit A-1 4,803,354
Agency funds cash per Exhibit E-1 9,985
Certificates of deposits (maturity > 3 months)170,500
Plus outstanding checks 1,360,067
Less deposits in transit (541,553)
Less U.S. Treasury Money Market Mutual Funds (3,785,012)
Less New Mexico State Treasurer Debt Service (3,732)
Less petty cash (1,550)
Bank balance of deposits 7,359,646$
46
STATE OF NEW MEXICO
Town of Taos
Notes to the Financial Statements
June 30, 2013
NOTE 3.Deposits and Investments (continued)
Investments
The Town invests excess cash in the State Treasurer Local Government Investment Pool. The New
MexiGROW Local Government Investment Pool’s (LGIP)investments are valued at fair value based on quoted
market prices as of the valuation date. The LGIP is not SEC registered. The New Mexico State Treasurer is
authorized to invest the short-term i nvestment funds, with the advice and consent of the State Board of Finance,
in accordance with Sections 6-10-10(I) through 6-10-10(P) and Sections 6-10-10.1(A) and (E), NMSA 1978.
The pool does not have unit shares. P er Section 6-10-10. (F), NMSA 1978, at the end of each month all interest
earned is distributed by the State Treasurer to the contributing entities in amounts directly proportionate to the
respective amounts deposited in the fund and the length of time the fund amounts were invested. P articipation
in the LGIP is voluntary.
As of June 30, 2013, the Town’s investment in the State Treasurer Local Government Investment Pool was
rated as AAAm by Standard & Poor’s.
Additionally, the Town has investments held in U.S. Treasury Money Market Mutual Funds at the Bank of
Albuquerque in connection with New Mexico Finance Authority (NMFA) loans. Also, the Town has
investments which are ma naged 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, 2013 include the following:
Investments Rated
New MexicoGrow Local Government Investment Pool AAAm 59 Days 4,153,336$
Reserve Contingency Fund Unrated Does not earn interest 5,395
U.S. Treasury Money Market Mutual Funds *AA+**>365 Days 3,785,012
New Mexico State Treasurer Debt Service *AA+**>365 Days 3,732
$ 7,947,475
Weighted Average
Maturity Fair Value
*Restricted investments per Exhibit A-1
** Based off Standards & Poor’s rating
Interest Rate Risk –Investments. The Town does not have a formal policy limiting investment maturities that
would help manage its exposure to fair value losses from increasing interest rates.
Concentration of Credit Risk –Investments. For an investment, concentration of credit risk is when any one
issuer is 5% or more of the investment portfolio of the Town. T he investments in the New MexiGROW LGIP
and U.S Treasury Money Market Mutual Funds represent 53% and 48%, 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. T he Town’s policy related to concentration
credit risk is to comply with the state statute as put forth in the Public Money Act (Section 6-10-1 to 6-10-63,
NMSA 1978).
47
STATE OF NEW MEXICO
Town of Taos
Notes to the Financial Statements
June 30, 2013
NOTE 4.Receivables
Receivables as of June 30, 2013, are as follows:
Governmental Activities:Other
Governmental
General Funds Total
Property taxes receivable 181,051$ -$ 181,051$
Other taxes receivable:
Gross receipts 1,327,122 247,071 1,574,193
Gasoline and motor vehicle 38,022 16,328 54,350
Franchise taxes 78,196 - 78,196
Lodger's taxes - 129,084 129,084
Due from other governments:
Intergovernmental:
Federal grants - 62,059 62,059
State grants 42,507 186,750 229,257
Total receivables 1,666,898$641,292$ 2,308,190$
Receivables for governmental activities are considered to be 100% collectible.
Governmental funds report unearned 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. Unearned revenue related
to property taxes receivable for the Town for the year ended June 30, 2013 was $135,791. 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 $33,244.
Business-type Activities:Water and Solid Taos Regional
Sewer Waste Landfill Total
Customer receivables 1,014,209$227,315$ 110,138$ 1,351,662$
Other receivables:
Intergovernmental:
State grants 42,975 - - 42,975
Total gross receivables 1,057,184 227,315 110,138 1,394,637
Less: allowance for
doubtful accounts 371,613 70,238 55,252 497,103
Total net receivables 685,571$ 157,077$ 54,886$ 897,534$
48
STATE OF NEW MEXICO
Town of Taos
Notes to the Financial Statements
June 30, 2013
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 4,405,143$
General Fund Civic Center 136,136
General Fund 1/4 GRT Capital Improvements Fund 60,942
Lodger's Tax General Fund 161,625
Local Government Correction General Fund 104,048
Public Transportation General Fund 25,000
Community Grants General Fund 117,884
General Fund General Fund 185,313
Communication Fund General Fund 262,691
Facilities Improvement General Fund 15,205
Airport Construction General Fund 20,000
Civic Center Lodger's Tax 96,225
Lodger's Tax Lodger's Tax 628,535
Public Transportation Lodger's Tax 182,421
2011 NMFA PPRF Street Improvement Municipal Road Gasoline Tax 112,362
2008 Gross Receipts Tax Revenue
Bond Retirement 1/4 GRT Capital Improvements Fund 491,425
2009 NMFA PPRF Disadvantage
Program- Eco Park 1/4 GRT Capital Improvements Fund 180,755
2007 NMFA Land Purchase 1/4 GRT Capital Improvements Fund 113,734
Facilities Improvement 1/4 GRT Capital Improvements Fund 13,000
Capital Projects 1/4 GRT Capital Improvements Fund 39,152
Capital Projects Communication Fund 133,271
2011 PPRF Street Improvement 1999 Gasoline Tax Acquisition 183,210
Lodger's Tax Capital Projects 21,247
Public Transportation Capital Projects 35,193
Facilities Improvement Capital Projects 433,976
Airport Construction Capital Projects 75,246
Vehicle Replacement Capital Projects 190,000
Communication Fund Enhanced 911 25,309
Capital Projects General Fund 49,714
8,498,762$
49
STATE OF NEW MEXICO
Town of Taos
Notes to the Financial Statements
June 30, 2013
NOTE 5.Transfers and Interfund Receivables (continued)
Business-Type Activities:
Transfers In Transfers Out Amount
Water and Sewer Water and Sewer 2,651,830$
Taos Regional Landfill Taos Regional Landfill 369,464
3,021,294$
During the year end June 30, 2013, there was a transfer in the amount of $13,616 from an asset being recorded
in Enterprise activity capital assets which was reclassified to governmental activity capital assets.
Internal balances have primarily been recorded when funds overdraw their share of pooled cash. The
composition of interfund balances as of June 30, 2013 is as follows:
Due from Other Funds Due to Other Funds Amount
General Fund Water and Sewer 2,494$
All interfund transactions are short-term and are expected to be repaid within a month.
NOTE 6.Capital Assets
A summary of capital assets and changes occurring during the year ended June 30, 2013 follows. Land and
construction in progress are not subject to depreciation.
Balance Balance
Governmental activities:June 30, 2012 Reclassification Additions Deletions June 30, 2013
Capital assets, not depreciated:
Land 6,277,809$ -$ -$ -$ 6,277,809$
Construction in progress 358,224 - 1,004,173 198,325 1,164,072
Total capital assets, not depreciated 6,636,033 - 1,004,173 198,325 7,441,881
Capital assets, depreciated:
Land improvements 7,377,460 - - - 7,377,460
Buildings and improvements 33,444,101 - 394,345 - 33,838,446
Machinery and equipment 15,237,169 - 1,239,919 - 16,477,088
Infrastructure 49,708,256 13,616 1,002,099 - 50,723,971
Total capital assets, depreciated 105,766,986 13,616 2,636,363 - 108,416,965
Less accumulated depreciation:
Land improvements (3,843,541) - (187,052) - (4,030,593)
Buildings and improvements (13,419,101) - (1,169,747) - (14,588,848)
Machinery and equipment (12,192,286) - (827,013) - (13,019,299)
Infrastructure (32,562,157) - (1,678,758) - (34,240,915)
Total accumulated depreciation (62,017,085) - (3,862,570) - (65,879,655)
Net book value 50,385,934$ 13,616$ (222,034)$ 198,325$ 49,979,191$
50
STATE OF NEW MEXICO
Town of Taos
Notes to the Financial Statements
June 30, 2013
NOTE 6. Capital Assets (continued)
Depreciation expense for the year ended June 30, 2013 was charged to governmental activities as follows:
General government 1,711,710$
Public safety 72,871
Public works 2,042,223
Culture and recreation 2,054
Health and welfare 33,712
3,862,570$
Balance Balance
Business-type activities:June 30, 2012 Reclassifications Additions Deletions June 30, 2013
Capital assets, not depreciated:
Land 262,422$ -$ -$ -$ 262,422$
Construction in progress 10,994,117 (13,616) - 10,270,600 709,901
Total capital assets, not depreciated 11,256,539 (13,616) - 10,270,600 972,323
Capital assets, depreciated:
Land improvements 104,895 - - - 104,895
Buildings and improvements 4,392,921 - 264,060 - 4,656,981
Machinery and equipment 8,740,908 - 170,937 - 8,911,845
Infrastructure 21,821,050 - 10,443,534 - 32,264,584
Total capital assets, depreciated 35,059,774 - 10,878,531 - 45,938,305
Less accumulated depreciation:
Land improvements (85,758) - (2,564) - (88,322)
Buildings and improvements (2,130,001) - (149,712) - (2,279,713)
Machinery and equipment (6,342,906) - (335,609) - (6,678,515)
Infrastructure (7,968,825) - (1,098,406) - (9,067,231)
Total accumulated depreciation (16,527,490) - (1,586,291) - (18,113,781)
Net book value 29,788,823$ (13,616)$ 9,292,240$ 10,270,600$28,796,847$
Depreciation expense for the year ended June 30, 2013 was charged to business-type activities as follows:
Enterprise activities:
Water and sewer 1,362,718$
Solid waste 41,218
Landfill 182,355
1,586,291$
51
STATE OF NEW MEXICO
Town of Taos
Notes to the Financial Statements
June 30, 2013
NOTE 7. Long-term Debt
Governmental Activities:
During the year ended June 30, 2013, the following changes occurred in the liabilities reported in the
government-wide statement of net position:
Balance Balance Due Within
June 30, 2012 Additions Retirements June 30, 2013 One Year
Revenue Bonds 5,510,000$ -$ 265,000$ 5,245,000$ 280,000$
NMFA Loans 3,985,290 - 365,809 3,619,481 372,604
USDA Contract Payable 36,000 - 18,000 18,000 18,000
Compensated Absences 619,942 364,195 389,502 594,635 389,502
Total Long-Term Debt 10,151,232$ 364,195$ 1,038,311$ 9,477,116$ 1,060,106$
Revenue Bonds
At June 30, 2013, 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. T he 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, 2013, including interest payments,are as
follows:
Fiscal Year Total Debt
Ending June 30,Principal Interest Service
2014 280,000$ 209,800$ 489,800$
2015 290,000 198,600 488,600
2016 300,000 187,000 487,000
2017 315,000 386,250 701,250
2018 385,000 162,400 547,400
2019-2023 2,160,000 395,260 2,555,260
2024-2026 1,515,000 63,630 1,578,630
5,245,000$ 1,602,940$ 6,847,940$
52
STATE OF NEW MEXICO
Town of Taos
Notes to the Financial Statements
June 30, 2013
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
The annual requirements to amortize the NMFA loans as of J une 30, 2013, including interest payments, are as
follows:
Fiscal Year Total Debt
Ending June 30,Principal Interest Service
2014 372,604$ 86,937$ 459,541$
2015 380,341 81,081 461,422
2016 389,203 74,281 463,484
2017 399,053 66,568 465,621
2018 296,227 57,870 354,097
2019-2023 1,439,410 179,668 1,619,078
2024-2025 342,643 18,870 361,513
3,619,481$ 565,275$ 4,184,756$
USDA Contract Payable
At June 30, 2013, the Town had the following USDA contract payable:
Date of Due Interest Amount
Description Issue Date Rate of Issue
USDA Contract Payable 02/01/95 06/30/14 0.00%360,000$
The annual requirements to amortize the USDA contract payable as of June 30, 2013,including interest
payments, are as follows:
Fiscal Year Total Debt
Ending June 30,Principal Interest Service
2014 18,000$ -$ 18,000$
18,000$ -$ 18,000$
53
STATE OF NEW MEXICO
Town of Taos
Notes to the Financial Statements
June 30, 2013
NOTE 7.Long-term Debt (continued)
In prior years, the debt service funds have typically been used to liquidate long-term liabilities other than debt
associated with the USDA contract payable,which is liquidated by the facilities improvements capital projects
fund.
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, 2013, compensated absences decreased
$25,307 from the prior year accrual.Compensated absences are liquidated by the respective funds in which
they are accrued.
Proprietary Funds:
The proprietary funds have incurred various forms of debt which were used for the purposes of constructing,
expanding, repairing and making improvements to its property, plant and equipment. T he following schedule
shows the changes to its various forms of debt during the fiscal year ended June 30, 2013:
Balance Balance Due Within
June 30, 2012 Additions Retirements June 30, 2013 One Year
Revenue Bonds 2,055,600$ -$ 46,000$ 2,009,600$ 49,000$
NMFA and RUS Loans 3,117,691 397,390 259,252 3,255,829 336,851
Landfill Closure Liability 1,897,341 - 220,320 1,677,021 -
Compensated Absences 68,803 10,504 23,802 55,505 23,802
Total Long-Term Debt 7,139,435$ 407,894$ 549,374$ 6,997,955$ 409,653$
Revenue Bonds
At June 30, 2013, 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
54
STATE OF NEW MEXICO
Town of Taos
Notes to the Financial Statements
June 30, 2013
NOTE 7.Long-term Debt (continued)
The annual requirements to amortize the revenue bonds as of June 30, 2013, including interest payments, are as
follows:
Fiscal Year Total Debt
Ending June 30,Principal Interest Service
2014 49,000$ 104,572$ 153,572$
2015 52,000 102,033 154,033
2016 54,000 99,279 153,279
2017 57,000 96,448 153,448
2018 60,000 93,457 153,457
2019-2023 351,000 416,722 767,722
2024-2028 452,000 314,514 766,514
2029-2033 595,600 182,292 777,892
2034-2038 339,000 41,435 380,435
2,009,600$ 1,450,752$ 3,460,352$
NMFA and USDA Loans
The Town entered into loan agreements with the New Mexico Finance Authority and USDA.These loans are
not subject to intercept agreements. The loans are as follows:
Date of Due Interest Amount
Description Issue Date Rate of Issue
RUS Series 2000A Water & Sewer 12/18/00 12/18/40 5.00%250,000$
NMFA Series 2001A Water & Sewer 05/11/01 05/01/21 4.16-5.41%950,391
NMFA Taos Regional Landfill 04/23/04 05/01/14 .79-3.34%1,372,684
NMFA Series 2008A Landfill 04/11/08 05/01/18 2.72-3.58%1,000,000
NMFA/WTB Water Project Fund Loan 09/11/09 06/01/29 0.00%130,000
NMFA/WTB Water Project Fund Loan 09/11/09 06/01/29 0.00%600,000
NMED/ARRA Water State Revolving Fund Loan 11/23/09 06/30/30 0.00% 1,200,000
NMFA/WTB Water Project Fund Loan 04/19/13 06/01/33 0.25%197,390
55
STATE OF NEW MEXICO
Town of Taos
Notes to the Financial Statements
June 30, 2013
NOTE 7.Long-term Debt (continued)
The annual requirement to amortize the loans as of June 30, 2013,including interest payments, is as follows:
Fiscal Year Total Debt
Ending June 30,Principal Interest Service
2014 336,851$ 47,316$ 384,167$
2015 271,330 39,908 311,238
2016 276,870 34,674 311,544
2017 282,775 29,094 311,869
2018 289,074 23,132 312,206
2019-2023 700,059 59,749 759,808
2024-2028 569,692 41,202 610,894
2029-2033 429,178 31,778 460,956
2034-2038 54,000 19,850 73,850
2039-2041 46,000 5,050 51,050
3,255,829$ 331,753$ 3,587,582$
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, 2013, compensated absences decreased
$13,798 from the prior year accrual.Compensated absences are liquidated by the respective funds in which
they are accrued.
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, 2013, 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 M exico 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.
56
STATE OF NEW MEXICO
Town of Taos
Notes to the Financial Statements
June 30, 2013
NOTE 9. Other Required Individual Fund Disclosures
Generally accepted accounting principles require disclosures of certain information concerning individual funds
including:
A.Deficit fund balance of individual funds. There were no funds with a deficit fund balance as of June 30,
2013.
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, 2013.
C.Designated cash appropriations in excess of available balances. There were no funds in which designated
cash appropriations were in excess of available balances.
NOTE 10.Pension Plan-Public Employees Retirement Association
Plan Description. Substantially all of the Town of Taos’s full-time employees participate in a public employee
retirement system authorized under the Public Employees Retirement Act (Chapter 10, Article 11 NMSA
1978.) T he Public Employees Retirement Association (PERA) is the administrator of the plan, which is a cost-
sharing, multiple-employer defined benefit retirement plan. T he plan provides for retirement benefits, disability
benefits, survivor benefits, and cost-of-living adjustments to plan members and beneficiaries. P ERA issues a
separate, publicly available financial report that includes financial statements and required supplementary
information for the plan. That report may be obtained by writing to PERA, P.O. Box 2123, Santa Fe, NM
87504-2123. The report is also available on PERA’s website at http://www.pera.state.nm.us.
Funding Policy. Plan members are required to contribute the following percentages of their gross salary:
9.15% for law enforcement, fire protection and municipal employees. T he Town is required to contribute the
following percentages of the gross covered salary: 25.65% for law enforcement employees, 28.30% for fire
protection employees, and 13.15% for municipal employees. T he contribution requirements of plan members
and the Town are established in State statute under Chapter 10, Article 11, NMSA 1978. The requirements
may be amended by acts of the legislature. The Town’s contributions to PERA for the years ending June 30,
2013, 2012 and 2011 were $956,567, $921,212,and $941,139, respectively, which equal the amount of the
required contributions for each fiscal year.
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.
57
STATE OF NEW MEXICO
Town of Taos
Notes to the Financial Statements
June 30, 2013
NOTE 11.Post-Employment Benefits –State Retiree Health Care Plan (continued)
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 monthly 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, 2013, 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,
2013, the statute required each participating employer to contribution 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, 2013, 2012 and 2011 were $123,302,
$109,884 and $106,634,respectively, which equal the required contributions for each year.
58
STATE OF NEW MEXICO
Town of Taos
Notes to the Financial Statements
June 30, 2013
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 M exico Self Insurers Fund. T he maximum exposure of the Town is not estimable as of J une
30, 2013.
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, 2013, which is based on 29.4 percent usage (filled) of
the landfill. This is a decrease of $220,320. The Town has contracted with engineers in the current year in
which the calculation used to determine the closure and post closure differed from those in the prior year. In
prior year the estimate was determined by using calculations spreadsheet provided by the New Mexico
Environment Department, Solid Waste Bureau. The estimate incorporates estimates and assumptions in
calculating capacity that likely makes it less accurate. The estimate that is used currently is deemed more
accurate and therefore caused changes in the liability and percent usage from 33% to 29.4%. 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, 2013. H owever, the actual cost of closure and post closure care ma y be higher due to inflation, changes in
technology, or changes in landfill laws and regulations.
In addition, the Town is required by State and Federal laws and regulations to make annual contributions to
finance closure and postclosure care. The Town is in compliance with these requirements, and at June 30,
2013, cash of $744,541 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.
59
STATE OF NEW MEXICO
Town of Taos
Notes to the Financial Statements
June 30, 2013
NOTE 15.Construction and Other Significant Commitments
The Town has committed to pay for several construction contracts that were not completed at June 30, 2013 in
the amount of $3,600,413 as follows:
Project Description Contractor
Old Talpa Canon Road Improvements 531,807$ November 2013 Northern Mountain Constructors, Inc.
Aiport Overflight Stipulators 1,013,000 October 2013 Advanced Naigation and Positioning Corp
Airport Runway Design Phase 1 151,077 February 2014 Amstrong Consultants
Airport Runway Design Phase 2 836,058 February 2014 Armstrong Consultants
International 7500 Truck 85,100 November 2013 Roberts Truck Company
Dump truck body, spreader and plow 54,518 November 2013 Construction Truck Equipment
2013 Brush Fire Apparatus F550 125,000 September 2013 Chastang Enterprise
Sleuth Software System Upgrade 21,110 November 2013 ETS Development Group LLC
Camino de la Placita Engineering Design 38,948 October 2013 Abeyta Engineering, Inc.
TCA Roof Replacement 109,500 September 2013 The Garland Co. Inc.
Relocation of Central Dispatch 50,000 August 2013 CDI Infrastructure/LR Kimball
Relocation of Central Dispatch 70,789 August 2013 Advanced Comunications & Electronics
Affordable Housing for Artists Plan 100,000 October 2013 Taos Housing Trust
Downtown Masterplan 75,000 October 2014 Community by Design
Chamisa Verde Phase II Development 49,999 September 2013 David Paul Rosen
Camino del Medio Engineering Design 54,039 TBD JM Consulting
Landfill Engineering/Reporting Services 163,719 December 2013 Souder, Miller & Associates
Hrydrological Services 70,749 November 2013 Daniel B. Stephens & Associates
3,600,413$
Contract
Amount
Remaining
Estimated Date
of Completion
NOTE 16.Subsequent Events
The date to which events occurring after June 30, 2013, the date of the most recent statement of net position,
have been evaluated for possible adjustment to the financial statements or disclosures is October 15, 2013,
which is the date on which the financial statements were issued.
NOTE 17.Concentrations
The Town depends on financial resources flowing from, or associated with, both the Federal Government and
the State of New Mexico. 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 net position reports $4,933,336 of restricted net position, all of which is
restricted by enabling legislation. See pages 39 and 66 to 69 for descriptions of the related restrictions for
special revenue, debt service and capital projects funds.
60
STATE OF NEW MEXICO
Town of Taos
Notes to the Financial Statements
June 30, 2013
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 $480,600 and $332,381, respectively. Principal and interest paid for the current year and total
customer net revenues were $40,765 and $3,073,949, 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 $95,000 and $67,760, respectively. P rincipal and interest paid for the current year and total customer
net revenues were $7,335 and $3,073,949, respectively.
The Town of Taos has pledged future revenues from the water and sewer system, net of operation and
maintenance expenses, to repay $1,315,000 in Series 1995A Utility Bonds, issued in 1995. The bonds are
payable solely from utility customer net revenues and are payable through December 2035. The pledged
revenues shall be in an amount sufficient to pay principal, premium, if any, interest and other amounts due
under the bond agreement, including an amount sufficient to cure any deficiencies in the debt service account or
the bond agreement reserve account, to the USDA or the Trustee, as its assignee, to be deposited in the debt
service reserve account or the bond agreement reserve account held by the trustee, payable from and
constituting a lien upon the pledged revenues. The total principal and interest remaining to be paid on the
bonds is $1,040,000 and $753,789, respectively. Principal and interest paid for the current year and total
customer net revenues were $77,479 and $3,073,949, 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 $394,000 and $296,821, respectively. Principal and interest paid for the current year and total
customer net revenues were $27,403 and $3,073,949, 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 $219,000 and $196,500, respectively. P rincipal and interest paid for the current year and total customer net
revenues were $14,100 and $3,073,949, respectively.
61
STATE OF NEW MEXICO
Town of Taos
Notes to the Financial Statements
June 30, 2013
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 $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 $414,270
and $79,521, respectively. P rincipal and interest paid for the current year and total customer net revenues were
$68,318 and $3,073,949, respectively.
The Town of Taos has pledged future revenues from the distribution of the Municipal Environmental Services
Gross Receipts Tax revenue, to repay $1,372,684 in NMFA Taos Regional Landfill Loan, issued in 2004. T he
loans are payable solely from the Municipal Environmental Services GRT revenue and are payable through
May 2014. The pledged revenues shall be in an amount sufficient to pay principal, premium, if any, interest
and other amounts due under the loan 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 t he trustee, payable
from and constituting a lien upon the pledged revenues. T he total principal and interest remaining to be paid on
the loan is $79,239 and $2,647, respectively. P rincipal and interest paid for the current year and total customer
net revenues were $81,795 and $987,468, 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 $550,952
and $47,801, respectively. P rincipal and interest paid for the current year and total customer net revenues were
$112,236 and $987,468, respectively.
The Town of Taos has pledged future revenues from the Taos Wastewater project, net of operation and
maintenance expenses, to repay $130,000 in NMFA/WTB Water Project, issued in 2009. 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 $105,955 with no interest
due. P rincipal for the current year and total customer net revenues were $6,482 and $3,073,949, 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 $489,023 with no interest
due. P rincipal for the current year and total customer net revenues were $29,919 and $3,073,949, respectively.
62
STATE OF NEW MEXICO
Town of Taos
Notes to the Financial Statements
June 30, 2013
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 $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. Principal and interest to be paid on the loan is not due and
payable until completion of the project.
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. No interest or principal is due until 2014.
NOTE 20.Related Parties
The Town conducted transactions with several entities which are considered related parties. T hese related party
transactions are as follows:
Vendor Related Party Amount
DMC Broadcasting Mayor $ 23,899
Abeyta Engineering Council member 69,986
MS Quick Stop Finance Director 544
Dave’s Digital IT Manager 1,169
Northern Fire Suppression Town Clerk 2,101
Jim Fambro Finance Director 2,000
NOTE 21.Subsequent Pronouncements
In March 2012, GASB Statement No. 65 Items Previously Reported as Assets and Liabilities, Effective Date:
The provisions of t his Statement are effective for financial statements for periods beginning after December 15,
2012. Earlier application is encouraged. The Town will implement this standard during fiscal year June 30,
2014.
In March 2012, GASB Statement No. 66 Technical Corrections-2012—an amendment of GASB Statements No.
10 and No. 62, Effective Date: The provisions of this Statement are effective for financial statements for
periods beginning after December 15, 2012. Earlier application is encouraged. T he Town will implement this
standard during fiscal year June 30, 2014.
In June 2012, GASB Statement No. 67 Financial Reporting for Pension Plans—an amendment of GASB
Statement No. 25, Effective Date: The provisions of this Statement are effective for financial statements for
periods beginning after June 15, 2013. Earlier application is encouraged. T he standard is expected to have no
effect on the Town in upcoming years.
In June 2012, GASB Statement No. 68 Accounting and Financial Reporting for Pensions—an amendment of
GASB Statement No. 27, Effective Date: The provisions of this Statement are effective for financial statements
for periods beginning after June 15, 2014. Earlier application is encouraged. The Town will implement this
standard during the fiscal year June 30, 2016.
63
STATE OF NEW MEXICO
Town of Taos
Notes to the Financial Statements
June 30, 2013
NOTE 21.Subsequent Pronouncements (continued)
In January 2013, GASB Statement No. 69 Government Combinations and Disposals of Government
Operations,Effective Date: The provisions of this Statement are effective for government combinations and
disposals of government operations occurring in financial reporting periods beginning after December 15, 2013.
Earlier application is encouraged. The provisions of this Statement generally are required to be applied
prospectively. The Town is still evaluating how this standard will affect the Town.
In April 2013, GASB Statement No.70 Accounting and Financial Reporting for Nonexchange Financial
Guarantees,Effective Date: T he provisions of this Statement are effective for reporting periods beginning after
June 15, 2013. E arlier application is encouraged. E xcept for disclosures related to cumulative amounts paid or
received in relation to a financial guarantee, the provisions of this Statement are required to be applied
retroactively. Disclosures related to cumulative amounts paid or received in relation to a financial guarantee
may be applied prospectively. The Town is still evaluating how this reporting standard will affect the Town.
64
SUPPLEMENTARY INFORMATION
65
STATE OF NEW MEXICO
Town of Taos
Nonmajor Governmental Fund Descriptions
June 30, 2013
Special Revenue Funds
Fire Protection
To account for the operations and maintenance of the fire department. Financing is provided by an allotment from the State of New
Mexico Fire Marshall’s Office. State Statute Section 59A-53-2, NMSA, 1978 compilation, requires the allotment be used only to
operate fire departments.
Recreation
To account for establishing and maintaining recreational programs in the Town. Financing is provided by program revenue and by a 1-
cent tax on cigarette sales, which is collected and distributed by the State of New Mexico. State Statute Section 7-12-15, NMSA, 1978
compilation requires this tax be used in the above manner.
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 enforcement planning and training; (3) complying with match or contribution requirements of federal funds for criminal
justice programs; (4) no more than fifty percent (50%) of the replacement salaries of municipal and county law enforcement personnel
while attending a specified advanced law enforcement planning and training.
Civic Center
To account for that portion of lodger’s tax receipts allocated for Civic Center operations and promotional expenditures, as well as the
revenues earned from Civic Center operations, including rentals, catering fees, and related charges for services. Authority is Town
Council resolution.
Domestic Violence Shelter
This fund was created to receive the appropriations and grants for the purpose of construction and maintaining the Domestic Violence
Shelter Home. Authority is Town Council resolution.
Public Transportation
To account for the portion of Lodger’s Tax receipts allocated for the purpose of providing transportation to the public. Authority is
Town Council resolution.
66
STATE OF NEW MEXICO
Town of Taos
Nonmajor Governmental Fund Descriptions
June 30, 2013
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 roads. Also included in this fund is revenue from the
State Department of Transportation under a municipal arterial project agreement. Authority is 7-7-6.9 and 7-1-6.27 NMSA 1978.
¼ Cent Municipal Gross Receipts Tax
To account for proceeds from a supplemental municipal gross receipts tax, a portion of which is pledged toward payment of principal
and interest on Gross Receipts Tax Revenue Bonds. After required debt service transfers have been made, the remaining income of this
fund is restricted for capital improvement purposes. NMSA 1978 Chapter 7, Article 20E-1 to 22.
Communications
To account for money collected 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.
67
STATE OF NEW MEXICO
Town of Taos
Nonmajor Governmental Fund Descriptions
June 30, 2013
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.
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.
68
STATE OF NEW MEXICO
Town of Taos
Nonmajor Governmental Fund Descriptions
June 30, 2013
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.
Airport Construction
This fund was created to receive proceeds from federal and state grants for the purpose of financing improvements to the Taos
Municipal Airport. Authority is Town Council resolution.
Enhanced 911
This fund was created to receive grants and transfers for the purpose of expanding benefits of the basic 911 emergency telephone
number to achieve faster response time. Authority is Town Council resolution.
Vehicle Replacement
This fund 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.
69
Fire Protection Recreation Lodger's Tax
Assets
Cash and cash equivalents 6,341$ 708$ 209,272$
Investments 263,258 10,000 -
Receivables:
Other taxes - - 129,084
Due from other governments - - -
Total assets 269,599$ 10,708$ 338,356$
Liabilities
Accounts payable 4,334$ 148$ 8,910$
Accrued payroll - - 4,130
Deposits held in trust for others - - -
Unearned revenue - - 33,244
Total liabilities 4,334 148 46,284
Fund balances
Spendable
Restricted for:
General government - - -
Public safety - - -
Culture and recreation - 10,560 292,072
Public works - - -
Fire protection 265,265 - -
Health and welfare - - -
Debt service expenditures - - -
Capital projects - - -
Total fund balances 265,265 10,560 292,072
Total liabilities and fund balances 269,599$ 10,708$ 338,356$
Combining Balance Sheet
Nonmajor Governmental Funds
Town of Taos
STATE OF NEW MEXICO
Special Revenue
June 30, 2013
The accompanying notes are an integral part of these financial statements
70
Statement A-1
Page 1 of 3
Local
Government
Correction
Law
Enforcement
Protection Civic Center
Domestic
Violence Shelter
Public
Transportation
Community
Grants
66,861$ 6,016$ 4,652$ 1$ 27,319$ 30,577$
- - 3,000 - - 25,000
- - - - - -
- - - 2,879 54,031 58,583
66,861$ 6,016$ 7,652$ 2,880$ 81,350$ 114,160$
7,340$ 1,998$ 72$ 2,879$ 6,855$ 1,519$
- - - - 6,247 -
- - 5,103 - - -
- - - - - -
7,340 1,998 5,175 2,879 13,102 1,519
- - - - - 112,641
59,521 4,018 - - - -
- - 2,477 - - -
- - - - - -
- - - - - -
- - - 1 68,248 -
- - - - - -
- - - - - -
59,521 4,018 2,477 1 68,248 112,641
66,861$ 6,016$ 7,652$ 2,880$ 81,350$ 114,160$
Special Revenue
71
Municipal Road
Gasoline Tax
1/4 Cent
Municipal Gross
Receipts Tax Communications
Assets
Cash and cash equivalents -$ -$ 19,282$
Investments - - -
Receivables:
Other taxes 16,329 141,183 -
Due from other governments - - 71,257
Total assets 16,329$ 141,183$ 90,539$
Liabilities
Accounts payable -$ -$ 1,719$
Accrued payroll - - 10,886
Deposits held in trust for others - - -
Unearned revenue - - -
Total liabilities - - 12,605
Fund balances
Spendable
Restricted for:
General government - 141,183 77,934
Public safety - - -
Culture and recreation - - -
Public works 16,329 - -
Fire protection - - -
Health and welfare - - -
Debt service expenditures - - -
Capital projects - - -
Total fund balances 16,329 141,183 77,934
Total liabilities and fund balances 16,329$ 141,183$ 90,539$
Special Revenue
Combining Balance Sheet
Nonmajor Governmental Funds
Town of Taos
STATE OF NEW MEXICO
The accompanying notes are an integral part of these financial statements
June 30, 2013
72
Statement A-1
Page 2 of 3
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
2011 PPRF
Street
Improvement
Reserve
-$ 1$ 182,445$ 41$ 97,270$ 169,862$
- - - - - -
- - - - - -
- - - - - -
-$ 1$ 182,445$ 41$ 97,270$ 169,862$
-$ -$ -$ -$ -$ -$
- - - - - -
- - - - - -
- - - - - -
- - - - - -
- - - - - -
- - - - - -
- - - - - -
- - - - - -
- - - - - -
- - - - - -
- 1 182,445 41 97,270 169,862
- - - - - -
- 1 182,445 41 97,270 169,862
-$ 1$ 182,445$ 41$ 97,270$ 169,862$
Debt Service
73
Facilities
Improvements Capital Projects
Airport
Construction
Assets
Cash and cash equivalents 242,933$ 139,253$ 5,073$
Investments 27,000 482,198 -
Receivables:
Other taxes - 105,887 -
Due from other governments - - 62,059
Total assets 269,933$ 727,338$ 67,132$
Liabilities
Accounts payable 8,226$ 21,391$ 49$
Accrued payroll - - -
Deposits held in trust for others - - -
Unearned revenue - - -
Total liabilities 8,226 21,391 49
Fund balances
Spendable
Restricted for:
General government - - -
Public safety - - -
Culture and recreation - - -
Public works - - -
Fire protection - - -
Health and welfare - - -
Debt service expenditures - - -
Capital projects 261,707 705,947 67,083
Total fund balances 261,707 705,947 67,083
Total liabilities and fund balances 269,933$ 727,338$ 67,132$
Town of Taos
STATE OF NEW MEXICO
June 30, 2013
Combining Balance Sheet
Nonmajor Governmental Funds
The accompanying notes are an integral part of these financial statements
Capital Projects
74
Statement A-1
Page 3 of 3
Enhanced 911
Vehicle
Replacement
1994 Gross
Receipts Tax
Revenue Bond
Acquisition
Total Nonmajor
Governmental
Funds
-$ 190,426$ 84,855$ 1,483,188$
- 34,000 520,800 1,365,256
- - - 392,483
- - - 248,809
-$ 224,426$ 605,655$ 3,489,736$
-$ -$ 7,999$ 73,439$
- - - 21,263
- - - 5,103
- - - 33,244
- - 7,999 133,049
- - - 331,758
- - - 63,539
- - - 305,109
- - - 16,329
- - - 265,265
- - - 68,249
- - - 449,619
- 224,426 597,656 1,856,819
- 224,426 597,656 3,356,687
-$ 224,426$ 605,655$ 3,489,736$
Capital Projects
75
Fire Protection Recreation Lodger's Tax
Revenues
Taxes
Gross receipts -$ -$ -$
Gasoline and motor vehicle taxes - - -
Lodger's taxes - - 942,572
Other - - -
Intergovernmental income
Federal operating grants - - -
Federal capital grants - - -
State operating grants 221,960 - -
State capital grants - - -
Charges for services - 4,307 70,931
Licenses and fees - - -
Investment income (loss)- - -
Miscellaneous - 815 5,289
Total revenues 221,960 5,122 1,018,792
Expenditures
Current
General government - - -
Public safety 81,076 - -
Public works - - -
Culture and recreation - 33,271 814,993
Health and welfare - - -
Capital outlay 474,850 - 22,070
Debt service
Principal - - -
Interest - - -
Total expenditures 555,926 33,271 837,063
Excess (deficiency) of revenues over
expenditures (333,966) (28,149) 181,729
Other financing sources (uses)
Transfers in - - 811,407
Transfers out - - (907,181)
Total other financing sources (uses)- - (95,774)
Net change in fund balances (333,966) (28,149) 85,955
Fund balances - beginning of year 599,231 38,709 206,117
Fund balances - end of year 265,265$ 10,560$ 292,072$
The accompanying notes are an integral part of these financial statements
Special Revenue
For the Year Ended June 30, 2013
Combining Statement of Revenues, Expenditures and Changes in Fund Balances
Nonmajor Governmental Funds
Town of Taos
STATE OF NEW MEXICO
76
Statement A-2
Page 1 of 3
Local
Governmental
Correction
Law
Enforcement
Protection Civic Center
Domestic
Violence Shelter
Public
Transportation
Community
Grants
-$ -$ -$ -$ -$ -$
- - - - - -
- - - - - -
- - - - - -
- - - 150,000 - -
- - - - - -
- 29,000 - - 574,585 264,647
- - - - - -
- - 39,006 - 64,830 -
21,531 - 300 - - -
- - - - - -
- - 6,475 - 6,296 -
21,531 29,000 45,781 150,000 645,711 264,647
- - - - - 327,678
82,632 28,803 - - - -
- - - - - -
- - 5,200 - - -
- - - 150,000 544,874 -
- - - - 305,796 47,212
- - - - - -
- - - - - -
82,632 28,803 5,200 150,000 850,670 374,890
(61,101) 197 40,581 - (204,959) (110,243)
104,048 - 96,225 - 242,614 117,884
- - (136,136) - - -
104,048 - (39,911) - 242,614 117,884
42,947 197 670 - 37,655 7,641
16,574 3,821 1,807 1 30,593 105,000
59,521$ 4,018$ 2,477$ 1$ 68,248$ 112,641$
Special Revenue
77
Municipal Road
Gasoline Tax
1/4 Cent
Municipal Gross
Receipts Tax Communications
Revenues
Taxes
Gross receipts -$ 888,669$ -$
Gasoline and motor vehicle taxes 119,966 - -
Lodger's taxes - - -
Other - - -
Intergovernmental income
Federal operating grants - - -
Federal capital grants - - -
State operating grants - - -
State capital grants - - -
Charges for services - - 315,520
Licenses and fees - - -
Investment income (loss)- - -
Miscellaneous - - -
Total revenues 119,966 888,669 315,520
Expenditures
Current
General government - - 608,762
Public safety - - -
Public works - - -
Culture and recreation - - -
Health and welfare - - -
Capital outlay - - 17,372
Debt service
Principal - - -
Interest - - -
Total expenditures - - 626,134
Excess (deficiency) of revenues over
expenditures 119,966 888,669 (310,614)
Other financing sources (uses)
Transfers in - - 288,000
Transfers out (112,362) (899,009) (133,271)
Total other financing sources (uses)(112,362) (899,009) 154,729
Net change in fund balances 7,604 (10,340) (155,885)
Fund balances - beginning of year 8,725 151,523 233,819
Fund balances - end of year 16,329$ 141,183$ 77,934$
Special Revenue
The accompanying notes are an integral part of these financial statements
Town of Taos
STATE OF NEW MEXICO
For the Year Ended June 30, 2013
Combining Statement of Revenues, Expenditures and Changes in Fund Balances
Nonmajor Governmental Funds
78
Statement A-2
Page 2 of 3
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
2011 PPRF
Street
Improvement
Reserve
-$ -$ -$ -$ -$ -$
- - - - - -
- - - - - -
- - - - - -
- - - - - -
- - - - - -
- - - - - -
- - - - - -
- - - - - -
- - - - - -
- - 643 9 340 263
- - - - - -
- - 643 9 340 263
- - - 1,295 - -
- - - - - -
- - - - - -
- - - - - -
- - - - - -
- - - - - -
128,048 265,000 - 97,362 140,399 -
52,708 226,425 - 15,077 24,237 -
180,756 491,425 - 113,734 164,636 -
(180,756) (491,425) 643 (113,725) (164,296) 263
180,756 491,425 - 113,734 297,675 -
- - - - (183,210) -
180,756 491,425 - 113,734 114,465 -
- - 643 9 (49,831) 263
- 1 181,802 32 147,101 169,599
-$ 1$ 182,445$ 41$ 97,270$ 169,862$
Debt Service
79
Facilities
Improvements Capital Projects
Airport
Construction
Revenues
Taxes
Gross receipts -$ 666,502$ -$
Gasoline and motor vehicle taxes - - -
Lodger's taxes - - -
Other - - -
Intergovernmental income
Federal operating grants - - -
Federal capital grants - - 919,202
State operating grants - - -
State capital grants - 115,041 50,678
Charges for services 27,999 - -
Licenses and fees - - -
Investment income (loss)- 780 -
Miscellaneous 22,300 272,000 -
Total revenues 50,299 1,054,323 969,880
Expenditures
Current
General government - - -
Public safety - - -
Public works 325,829 - 117,260
Culture and recreation - - -
Health and welfare - - -
Capital outlay 210,503 446,306 907,486
Debt service
Principal 18,000 - -
Interest - - -
Total expenditures 554,332 446,306 1,024,746
Excess (deficiency) of revenues over
expenditures (504,033) 608,017 (54,866)
Other financing sources (uses)
Transfers in 462,181 222,137 95,246
Transfers out - (755,662) -
Total other financing sources (uses)462,181 (533,525) 95,246
Net change in fund balances (41,852) 74,492 40,380
Fund balances - beginning of year 303,559 631,455 26,703
Fund balances - end of year 261,707$ 705,947$ 67,083$
Capital Projects
Nonmajor Governmental Funds
Town of Taos
STATE OF NEW MEXICO
Combining Statement of Revenues, Expenditures and Changes in Fund Balances
The accompanying notes are an integral part of these financial statements
For the Year Ended June 30, 2013
80
Statement A-2
Page 3 of 3
Enhanced 911
Vehicle
Replacement
1994 Gross
Receipts Tax
Revenue Bond
Acquisition
Total Nonmajor
Governmental
Funds
-$ -$ -$ 1,555,171$
- - - 119,966
- - - 942,572
- - - -
- - - 150,000
- - - 919,202
- - - 1,090,192
- - - 165,719
- - - 522,593
- - - 21,831
- - 798 2,833
- 12,575 64,133 389,883
- 12,575 64,931 5,879,962
- 11,985 - 949,720
- - - 192,511
- - 14,055 457,144
- - - 853,464
- - - 694,874
- 43,818 - 2,475,413
- - - 648,809
- - - 318,447
- 55,803 14,055 6,590,382
- (43,228) 50,876 (710,420)
- 190,000 - 3,713,332
(25,309) - - (3,152,140)
(25,309) 190,000 - 561,192
(25,309) 146,772 50,876 (149,228)
25,309 77,654 546,780 3,505,915
-$ 224,426$ 597,656$ 3,356,687$
Capital Projects
81
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 225,842 221,960 221,960 -
State capital grants - - - -
Charges for services - - - -
Licenses and fees - - - -
Investment income (loss)- - - -
Miscellaneous - - - -
Total revenues 225,842 221,960 221,960 -
Expenditures
Current
General government - - - -
Public safety 183,173 179,291 81,076 98,215
Public works - - - -
Culture and recreation - - - -
Health and welfare - - - -
Capital outlay 641,900 641,900 474,850 167,050
Debt service
Principal - - - -
Interest - - - -
Total expenditures 825,073 821,191 555,926 265,265
Excess (deficiency) of revenues over
expenditures (599,231) (599,231) (333,966) 265,265
Other financing sources (uses)
Designated cash (budgeted increase in cash)599,231 599,231 - (599,231)
Transfers in - - - -
Transfers out - - - -
Total other financing sources (uses)599,231 599,231 - (599,231)
Net change in fund balance - - (333,966) (333,966)
Fund balance - beginning of year - - 599,231 599,231
Fund balance - end of year -$ -$ 265,265$ 265,265$
STATE OF NEW MEXICO
The accompanying notes are an integral part of these financial statements
For the Year Ended June 30, 2013
Budget (GAAP Basis) and Actual
Statement of Revenues, Expenditures and Changes in Fund Balance
Fire Protection Special Revenue Fund
Town of Taos
Budgeted Amounts
82
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 6,983 8,264 4,307 (3,957)
Licenses and fees - - - -
Investment income (loss)- - - -
Miscellaneous - 815 815 -
Total revenues 6,983 9,079 5,122 (3,957)
Expenditures
Current
General government - - - -
Public safety - - - -
Public works - - - -
Culture and recreation 45,666 45,666 33,271 12,395
Health and welfare - - - -
Capital outlay - - - -
Debt service
Principal - - - -
Interest - - - -
Total expenditures 45,666 45,666 33,271 12,395
Excess (deficiency) of revenues over expenditures (38,683) (36,587) (28,149) 8,438
Other financing sources (uses)
Designated cash (budgeted increase in cash)38,683 36,587 - (36,587)
Transfers in - - - -
Transfers out - - - -
Total other financing sources (uses)38,683 36,587 - (36,587)
Net change in fund balance - - (28,149) (28,149)
Fund balance - beginning of year - - 38,709 38,709
Fund balance - end of year -$ -$ 10,560$ 10,560$
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, 2013
Budget (GAAP Basis) and Actual
83
Statement B-3
Variances
Actual
Favorable
(Unfavorable)
Original Final (GAAP Basis)Final to Actual
Revenues
Taxes
Property taxes -$ -$ -$ -$
Gross receipts - - - -
Gasoline and motor vehicle - - - -
Other 875,000 905,931 942,572 36,641
Intergovernmental income -
Federal operating grants - - - -
Federal capital grants - - - -
State operating grants - - - -
State capital grants - - - -
Charges for services 38,000 61,036 70,931 9,895
Licenses and fees - - - -
Investment income (loss)- - - -
Miscellaneous 7,200 8,064 5,289 (2,775)
Total revenues 920,200 975,031 1,018,792 43,761
Expenditures
Current
General government - - - -
Public safety - - - -
Public works - - - -
Culture and recreation 925,112 873,571 814,993 58,578
Health and welfare - - - -
Capital outlay 23,100 23,100 22,070 1,030
Debt service
Principal - - - -
Interest - - - -
Total expenditures 948,212 896,671 837,063 59,608
Excess (deficiency) of revenues over expenditures (28,012) 78,360 181,729 103,369
Other financing sources (uses)
Designated cash (budgeted increase in cash)106,515 17,414 - (17,414)
Transfers in 792,747 811,407 811,407 -
Transfers out (871,250) (907,181) (907,181) -
Total other financing sources (uses)28,012 (78,360) (95,774) (17,414)
Net change in fund balance - - 85,955 85,955
Fund balance - beginning of year - - 206,117 206,117
Fund balance - end of year -$ -$ 292,072$ 292,072$
STATE OF NEW MEXICO
The accompanying notes are an integral part of these financial statements
For the Year Ended June 30, 2013
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
84
Statement B-4
Variances
Actual
Favorable
(Unfavorable)
Original Final (GAAP Basis)Final to Actual
Revenues
Taxes
Property taxes -$ -$ -$ -$
Gross receipts - - - -
Gasoline and motor vehicle - - - -
Other - - - -
Intergovernmental income
Federal operating grants - - - -
Federal capital grants - - - -
State operating grants - - - -
State capital grants - - - -
Charges for services - - - -
Licenses and fees 21,325 21,325 21,531 206
Investment income (loss)- - - -
Miscellaneous - - - -
Total revenues 21,325 21,325 21,531 206
Expenditures
Current
General government - - - -
Public safety 135,000 135,000 82,632 52,368
Public works - - - -
Culture and recreation - - - -
Health and welfare - - - -
Capital outlay - - - -
Debt service
Principal - - - -
Interest - - - -
Total expenditures 135,000 135,000 82,632 52,368
Excess (deficiency) of revenues over expenditures (113,675) (113,675) (61,101) 52,574
Other financing sources (uses)
Designated cash (budgeted increase in cash)9,627 9,627 - (9,627)
Transfers in 104,048 104,048 104,048 -
Transfers out - - - -
Total other financing sources (uses)113,675 113,675 104,048 (9,627)
Net change in fund balance - - 42,947 42,947
Fund balance - beginning of year - - 16,574 16,574
Fund balance - end of year -$ -$ 59,521$ 59,521$
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, 2013
Budget (GAAP Basis) and Actual
Statement of Revenues, Expenditures and Changes in Fund Balance
85
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 29,000 29,000 29,000 -
State capital grants - - - -
Charges for services - - - -
Licenses and fees - - - -
Investment income (loss)- - - -
Miscellaneous - - - -
Total revenues 29,000 29,000 29,000 -
Expenditures
Current
General government - - - -
Public safety 29,000 32,821 28,803 4,018
Public works - - - -
Culture and recreation - - - -
Health and welfare - - - -
Capital outlay - - - -
Debt service
Principal - - - -
Interest - - - -
Total expenditures 29,000 32,821 28,803 4,018
Excess (deficiency) of revenues over expenditures - (3,821) 197 4,018
Other financing sources (uses)
Designated cash (budgeted increase in cash)- 3,821 - (3,821)
Transfers in - - - -
Transfers out - - - -
Total other financing sources (uses)- 3,821 - (3,821)
Net change in fund balance - - 197 197
Fund balance - beginning of year - - 3,821 3,821
Fund balance - end of year -$ -$ 4,018$ 4,018$
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, 2013
Budget (GAAP Basis) and Actual
Statement of Revenues, Expenditures and Changes in Fund Balance
86
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 24,407 39,006 39,006 -
Licenses and fees - 300 300 -
Investment income (loss)- - - -
Miscellaneous 1,700 6,475 6,475 -
Total revenues 26,107 45,781 45,781 -
Expenditures
Current
General government - - - -
Public safety - - - -
Public works - - - -
Culture and recreation 5,910 5,910 5,200 710
Health and welfare - - - -
Capital outlay - - - -
Debt service
Principal - - - -
Interest - - - -
Total expenditures 5,910 5,910 5,200 710
Excess (deficiency) of revenues over expenditures 20,197 39,871 40,581 710
Other financing sources (uses)
Designated cash (budgeted increase in cash)5,910 40 - (40)
Transfers in 87,125 96,225 96,225 -
Transfers out (113,232) (136,136) (136,136) -
Total other financing sources (uses)(20,197) (39,871) (39,911) (40)
Net change in fund balance - - 670 670
Fund balance - beginning of year - - 1,807 1,807
Fund balance - end of year -$ -$ 2,477$ 2,477$
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, 2013
Budget (GAAP Basis) and Actual
Statement of Revenues, Expenditures and Changes in Fund Balance
87
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 150,000 150,000 150,000 -
Federal capital grants - - - -
State operating grants - - - -
State capital grants - - - -
Charges for services - - - -
Licenses and fees - - - -
Investment income (loss)- - - -
Miscellaneous - - - -
Total revenues 150,000 150,000 150,000 -
Expenditures
Current
General government - - - -
Public safety - - - -
Public works - - - -
Culture and recreation - - - -
Health and welfare 150,000 150,000 150,000 -
Capital outlay - - - -
Debt service
Principal - - - -
Interest - - - -
Total expenditures 150,000 150,000 150,000 -
Excess (deficiency) of revenues over expenditures - - - -
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, 2013
Budget (GAAP Basis) and Actual
Statement of Revenues, Expenditures and Changes in Fund Balance
88
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 616,083 606,055 574,585 (31,470)
State capital grants - - - -
Charges for services 55,000 55,000 64,830 9,830
Licenses and fees - - - -
Investment income (loss)- - - -
Miscellaneous - 6,296 6,296 -
Total revenues 671,083 667,351 645,711 (21,640)
Expenditures
Current
General government - - - -
Public safety - - - -
Public works - - - -
Culture and recreation - - - -
Health and welfare 579,237 570,954 544,874 26,080
Capital outlay 323,400 323,400 305,796 17,604
Debt service
Principal - - - -
Interest - - - -
Total expenditures 902,637 894,354 850,670 43,684
Excess (deficiency) of revenues over expenditures (231,554) (227,003) (204,959) 22,044
Other financing sources (uses)
Designated cash (budgeted increase in cash)22,111 (15,611) - 15,611
Transfers in 209,443 242,614 242,614 -
Transfers out - - - -
Total other financing sources (uses)231,554 227,003 242,614 15,611
Net change in fund balance - - 37,655 37,655
Fund balance - beginning of year - - 30,593 30,593
Fund balance - end of year -$ -$ 68,248$ 68,248$
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, 2013
Budget (GAAP Basis) and Actual
Statement of Revenues, Expenditures and Changes in Fund Balance
89
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 355,403 408,103 264,647 (143,456)
State capital grants - - - -
Charges for services - - - -
Licenses and fees - - - -
Investment income (loss)- - - -
Miscellaneous - - - -
Total revenues 355,403 408,103 264,647 (143,456)
Expenditures
Current
General government 518,947 575,347 327,678 247,669
Public safety - - - -
Public works - - - -
Culture and recreation - - - -
Health and welfare - - - -
Capital outlay 35,613 48,913 47,212 1,701
Debt service
Principal - - - -
Interest - - - -
Total expenditures 554,560 624,260 374,890 249,370
Excess (deficiency) of revenues over expenditures (199,157) (216,157) (110,243) 105,914
Other financing sources (uses)
Designated cash (budgeted increase in cash)98,273 98,273 - (98,273)
Transfers in 100,884 117,884 117,884 -
Transfers out - - - -
Total other financing sources (uses)199,157 216,157 117,884 (98,273)
Net change in fund balance - - 7,641 7,641
Fund balance - beginning of year - - 105,000 105,000
Fund balance - end of year -$ -$ 112,641$ 112,641$
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, 2013
Budget (GAAP Basis) and Actual
90
Statement B-10
Variances
Actual
Favorable
(Unfavorable)
Original Final (GAAP Basis)Final to Actual
Revenues
Taxes
Property taxes -$ -$ -$ -$
Gross receipts - - - -
Gasoline and motor vehicle 80,923 112,362 119,966 7,604
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 80,923 112,362 119,966 7,604
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 80,923 112,362 119,966 7,604
Other financing sources (uses)
Designated cash (budgeted increase in cash)- - - -
Transfers in - - - -
Transfers out (80,923) (112,362) (112,362) -
Total other financing sources (uses)(80,923) (112,362) (112,362) -
Net change in fund balance - - 7,604 7,604
Fund balance - beginning of year - - 8,725 8,725
Fund balance - end of year -$ -$ 16,329$ 16,329$
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, 2013
Budget (GAAP Basis) and Actual
Statement of Revenues, Expenditures and Changes in Fund Balance
91
Statement B-11
Variances
Actual
Favorable
(Unfavorable)
Original Final (GAAP Basis)Final to Actual
Revenues
Taxes
Property taxes -$ -$ -$ -$
Gross receipts 916,259 916,259 888,669 (27,590)
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 916,259 916,259 888,669 (27,590)
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 916,259 916,259 888,669 (27,590)
Other financing sources (uses)
Designated cash (budgeted increase in cash)(266) (266) - 266
Transfers in - - - -
Transfers out (915,993) (915,993) (899,009) 16,984
Total other financing sources (uses)(916,259) (916,259) (899,009) 17,250
Net change in fund balance - - (10,340) (10,340)
Fund balance - beginning of year - - 151,523 151,523
Fund balance - end of year -$ -$ 141,183$ 141,183$
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, 2013
Budget (GAAP Basis) and Actual
92
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 315,400 315,400 315,520 120
Licenses and fees - - - -
Investment income (loss)- - - -
Miscellaneous - - - -
Total revenues 315,400 315,400 315,520 120
Expenditures
Current
General government 627,783 631,900 608,762 23,138
Public safety - - - -
Public works - - - -
Culture and recreation - - - -
Health and welfare - - - -
Capital outlay 37,500 17,372 17,372 -
Debt service
Principal - - - -
Interest - - - -
Total expenditures 665,283 649,272 626,134 23,138
Excess (deficiency) of revenues over expenditures (349,883) (333,872) (310,614) 23,258
Other financing sources (uses)
Designated cash (budgeted increase in cash)61,883 179,143 - (179,143)
Transfers in 288,000 288,000 288,000 -
Transfers out - (133,271) (133,271) -
Total other financing sources (uses)349,883 333,872 154,729 (179,143)
Net change in fund balance - - (155,885) (155,885)
Fund balance - beginning of year - - 233,819 233,819
Fund balance - end of year -$ -$ 77,934$ 77,934$
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, 2013
Budget (GAAP Basis) and Actual
Statement of Revenues, Expenditures and Changes in Fund Balance
93
Statement B-13
Variances
Actual
Favorable
(Unfavorable)
Original Final (GAAP Basis)Final to Actual
Revenues
Taxes
Property taxes -$ -$ -$ -$
Gross receipts - - - -
Gasoline and motor vehicle - - - -
Other - - - -
Intergovernmental income
Federal operating grants - - - -
Federal capital grants - - - -
State operating grants - - - -
State capital grants - - - -
Charges for services - - - -
Licenses and fees - - - -
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 128,048 128,048 128,048 -
Interest 52,708 52,708 52,708 -
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)- - - -
Transfers in 180,756 180,756 180,756 -
Transfers out - - - -
Total other financing sources (uses)180,756 180,756 180,756 -
Net change in fund balance - - - -
Fund balance - beginning of year - - - -
Fund balance - end of year -$ -$ -$ -$
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, 2013
Budget (GAAP Basis) and Actual
Statement of Revenues, Expenditures and Changes in Fund Balance
94
Statement B-14
Variances
Actual
Favorable
(Unfavorable)
Original Final (GAAP Basis)Final to Actual
Revenues
Taxes
Property taxes -$ -$ -$ -$
Gross receipts - - - -
Gasoline and motor vehicle - - - -
Other - - - -
Intergovernmental income -
Federal operating grants - - - -
Federal capital grants - - - -
State operating grants - - - -
State capital grants - - - -
Charges for services - - - -
Licenses and fees - - - -
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 265,000 265,000 265,000 -
Interest 226,425 226,425 226,425 -
Total expenditures 491,425 491,425 491,425 -
Excess (deficiency) of revenues over expenditures (491,425) (491,425) (491,425) -
Other financing sources (uses)
Designated cash (budgeted increase in cash)- - - -
Transfers in 491,425 491,425 491,425 -
Transfers out - - - -
Total other financing sources (uses)491,425 491,425 491,425 -
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, 2013
Budget (GAAP Basis) and Actual
95
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)- 631 643 12
Miscellaneous - - - -
Total revenues - 631 643 12
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 - 631 643 12
Other financing sources (uses)
Designated cash (budgeted increase in cash)- (631) - 631
Transfers in - - - -
Transfers out - - - -
Total other financing sources (uses)- (631) - 631
Net change in fund balance - - 643 643
Fund balance - beginning of year - - 181,802 181,802
Fund balance - end of year -$ -$ 182,445$ 182,445$
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, 2013
Budget (GAAP Basis) and Actual
Statement of Revenues, Expenditures and Changes in Fund Balance
96
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)- - 9 9
Miscellaneous - - - -
Total revenues - - 9 9
Expenditures
Current
General government 1,295 1,295 1,295 -
Public safety - - - -
Public works - - - -
Culture and recreation - - - -
Health and welfare - - - -
Capital outlay - - - -
Debt service
Principal 97,362 97,362 97,362 -
Interest 15,077 15,077 15,077 -
Total expenditures 113,734 113,734 113,734 -
Excess (deficiency) of revenues over expenditures (113,734) (113,734) (113,725) 9
Other financing sources (uses)
Designated cash (budgeted increase in cash)- - - -
Transfers in 113,734 113,734 113,734 -
Transfers out - - - -
Total other financing sources (uses)113,734 113,734 113,734 -
Net change in fund balance - - 9 9
Fund balance - beginning of year - - 32 32
Fund balance - end of year -$ -$ 41$ 41$
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, 2013
Budgeted Amounts
Budget (GAAP Basis) and Actual
Statement of Revenues, Expenditures and Changes in Fund Balance
97
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)- - 340 340
Miscellaneous - - - -
Total revenues - - 340 340
Expenditures
Current
General government - - - -
Public safety - - - -
Public works - - - -
Culture and recreation - - - -
Health and welfare - - - -
Capital outlay - - - -
Debt service
Principal 140,399 140,399 140,399 -
Interest 24,237 24,237 24,237 -
Total expenditures 164,636 164,636 164,636 -
Excess (deficiency) of revenues over expenditures (164,636) (164,636) (164,296) 340
Other financing sources (uses)
Designated cash (budgeted increase in cash)95,645 50,171 - (50,171)
Transfers in 252,201 297,675 297,675 -
Transfers out (183,210) (183,210) (183,210) -
Total other financing sources (uses)164,636 164,636 114,465 (50,171)
Net change in fund balance - - (49,831) (49,831)
Fund balance - beginning of year - - 147,101 147,101
Fund balance - end of year -$ -$ 97,270$ 97,270$
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, 2013
Budget (GAAP Basis) and Actual
Statement of Revenues, Expenditures and Changes in Fund Balance
98
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)- 590 263 (327)
Miscellaneous - - - -
Total revenues - 590 263 (327)
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 - 590 263 (327)
Other financing sources (uses)
Designated cash (budgeted increase in cash)- (590) - 590
Transfers in - - - -
Transfers out - - - -
Total other financing sources (uses)- (590) - 590
Net change in fund balance - - 263 263
Fund balance - beginning of year - - 169,599 169,599
Fund balance - end of year -$ -$ 169,862$ 169,862$
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, 2013
Budget (GAAP Basis) and Actual
99
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 50,000 50,000 - (50,000)
Charges for services - 27,999 27,999 -
Licenses and fees - - - -
Investment income (loss)- - - -
Miscellaneous - 22,300 22,300 -
Total revenues 50,000 100,299 50,299 (50,000)
Expenditures
Current
General government - - - -
Public safety - - - -
Public works 385,800 341,352 325,829 15,523
Culture and recreation - - - -
Health and welfare - - - -
Capital outlay 387,634 474,452 210,503 263,949
Debt service
Principal 18,000 18,000 18,000 -
Interest - - - -
Total expenditures 791,434 833,804 554,332 279,472
Excess (deficiency) of revenues over expenditures (741,434) (733,505) (504,033) 229,472
Other financing sources (uses)
Designated cash (budgeted increase in cash)294,458 294,458 - (294,458)
Transfers in 446,976 462,181 462,181 -
Transfers out - (23,134) - 23,134
Total other financing sources (uses)741,434 733,505 462,181 (271,324)
Net change in fund balance - - (41,852) (41,852)
Fund balance - beginning of year - - 303,559 303,559
Fund balance - end of year -$ -$ 261,707$ 261,707$
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, 2013
Budget (GAAP Basis) and Actual
Statement of Revenues, Expenditures and Changes in Fund Balance
100
Statement B-20
Variances
Actual
Favorable
(Unfavorable)
Original Final (GAAP Basis)Final to Actual
Revenues
Taxes
Property taxes -$ -$ -$ -$
Gross receipts 694,696 694,696 666,502 (28,194)
Gasoline and motor vehicle - - - -
Other - - - -
Intergovernmental income
Federal operating grants 75,000 75,000 - (75,000)
Federal capital grants - - - -
State operating grants 138,967 138,967 - (138,967)
State capital grants 290,395 290,395 115,041 (175,354)
Charges for services - - - -
Licenses and fees - - - -
Investment income (loss)- 780 780 -
Miscellaneous 6,000 278,000 272,000 (6,000)
Total revenues 1,205,058 1,477,838 1,054,323 (423,515)
Expenditures
Current
General government - - - -
Public safety - - - -
Public works 100,000 100,000 - 100,000
Culture and recreation - - - -
Health and welfare - - - -
Capital outlay 833,035 1,351,524 446,306 905,218
Debt service -
Principal - - - -
Interest - - - -
Total expenditures 933,035 1,451,524 446,306 1,005,218
Excess (deficiency) of revenues over expenditures 272,023 26,314 608,017 581,703
Other financing sources (uses)
Designated cash (budgeted increase in cash)427,502 467,092 - (467,092)
Transfers in 56,137 262,256 222,137 (40,119)
Transfers out (755,662) (755,662) (755,662) -
Proceeds from issuance of bonds - - - -
Total other financing sources (uses)(272,023) (26,314) (533,525) (507,211)
Net change in fund balance - - 74,492 74,492
Fund balance - beginning of year - - 631,455 631,455
Fund balance - end of year -$ -$ 705,947$ 705,947$
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, 2013
Budget (GAAP Basis) and Actual
Statement of Revenues, Expenditures and Changes in Fund Balance
101
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 1,769,846 1,914,959 919,202 (995,757)
State operating grants - - - -
State capital grants 95,884 165,273 50,678 (114,595)
Charges for services - - - -
Licenses and fees - - - -
Investment income (loss)- - - -
Miscellaneous - - - -
Total revenues 1,865,730 2,080,232 969,880 (1,110,352)
Expenditures
Current
General government - - - -
Public safety - - - -
Public works 513,180 118,688 117,260 1,428
Culture and recreation - - - -
Health and welfare - - - -
Capital outlay 1,450,000 2,028,881 907,486 1,121,395
Debt service
Principal - - - -
Interest - - - -
Total expenditures 1,963,180 2,147,569 1,024,746 1,122,823
Excess (deficiency) of revenues over expenditures (97,450) (67,337) (54,866) 12,471
Other financing sources (uses)
Designated cash (budgeted increase in cash)22,204 (27,909) - 27,909
Transfers in 75,246 95,246 95,246 -
Transfers out - - - -
Total other financing sources (uses)97,450 67,337 95,246 27,909
Net change in fund balance - - 40,380 40,380
Fund balance - beginning of year - - 26,703 26,703
Fund balance - end of year -$ -$ 67,083$ 67,083$
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, 2013
Budget (GAAP Basis) and Actual
Statement of Revenues, Expenditures and Changes in Fund Balance
102
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)- - - -
Miscellaneous - - - -
Total revenues - - - -
Expenditures
Current
General government - - - -
Public safety - - - -
Public works - - - -
Culture and recreation - - - -
Health and welfare - - - -
Capital outlay - - - -
Debt service
Principal - - - -
Interest - - - -
Total expenditures - - - -
Excess (deficiency) of revenues over expenditures - - - -
Other financing sources (uses)
Designated cash (budgeted increase in cash)25,309 25,309 - (25,309)
Transfers in - - - -
Transfers out (25,309) (25,309) (25,309) -
Total other financing sources (uses)- - (25,309) (25,309)
Net change in fund balance - - (25,309) (25,309)
Fund balance - beginning of year - - 25,309 25,309
Fund balance - end of year -$ -$ -$ -$
Enhanced 911 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, 2013
Budget (GAAP Basis) and Actual
Statement of Revenues, Expenditures and Changes in Fund Balance
103
Statement B-23
Variances
Actual
Favorable
(Unfavorable)
Original Final (GAAP Basis)Final to Actual
Revenues
Taxes
Property taxes -$ -$ -$ -$
Gross receipts - - - -
Gasoline and motor vehicle - - - -
Other - - - -
Intergovernmental income
Federal operating grants - - - -
Federal capital grants - - - -
State operating grants - - - -
State capital grants - - - -
Charges for services - - - -
Licenses and fees - - - -
Investment income (loss)- - - -
Miscellaneous - 12,575 12,575 -
Total revenues - 12,575 12,575 -
Expenditures
Current
General government 12,401 12,401 11,985 416
Public safety - - - -
Public works - - - -
Culture and recreation - - - -
Health and welfare - - - -
Capital outlay 190,000 190,000 43,818 146,182
Debt service
Principal - - - -
Interest - - - -
Total expenditures 202,401 202,401 55,803 146,598
Excess (deficiency) of revenues over expenditures (202,401) (189,826) (43,228) 146,598
Other financing sources (uses)
Designated cash (budgeted increase in cash)12,401 (174) - 174
Transfers in 190,000 190,000 190,000 -
Transfers out - - - -
Total other financing sources (uses)202,401 189,826 190,000 174
Net change in fund balance - - 146,772 146,772
Fund balance - beginning of year - - 77,654 77,654
Fund balance - end of year -$ -$ 224,426$ 224,426$
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, 2013
Budget (GAAP Basis) and Actual
Statement of Revenues, Expenditures and Changes in Fund Balance
104
Statement B-24
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 600,000 600,000 - (600,000)
Charges for services - - - -
Licenses and fees - - - -
Investment income (loss)2,000 2,000 798 (1,202)
Miscellaneous - 64,133 64,133 -
Total revenues 602,000 666,133 64,931 (601,202)
Expenditures
Current
General government - - - -
Public safety - - - -
Public works 665,000 715,000 14,055 700,945
Culture and recreation - - - -
Health and welfare - - - -
Capital outlay - - - -
Debt service
Principal - - - -
Interest - - - -
Total expenditures 665,000 715,000 14,055 700,945
Excess (deficiency) of revenues over expenditures (63,000) (48,867) 50,876 99,743
Other financing sources (uses)
Designated cash (budgeted increase in cash)63,000 48,867 - (48,867)
Transfers in - - - -
Transfers out - - - -
Total other financing sources (uses)63,000 48,867 - (48,867)
Net change in fund balance - - 50,876 50,876
Fund balance - beginning of year - - 546,780 546,780
Fund balance - end of year -$ -$ 597,656$ 597,656$
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, 2013
Budget (GAAP Basis) and Actual
Statement of Revenues, Expenditures and Changes in Fund Balance
105
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 1,000,000 1,000,000 480,000 (520,000)
State operating grants - - - -
State capital grants 354,302 354,302 - (354,302)
Charges for services - - - -
Licenses and fees - - - -
Investment income (loss)2,000 2,000 1,310 (690)
Miscellaneous - - - -
Total revenues 1,356,302 1,356,302 481,310 (874,992)
Expenditures
Current
General government - - - -
Public safety - - - -
Public works - - - -
Culture and recreation - - - -
Health and welfare - - - -
Capital outlay 3,271,321 3,271,321 966,798 2,304,523
Debt service
Principal - - - -
Interest - - - -
Total expenditures 3,271,321 3,271,321 966,798 2,304,523
Excess (deficiency) of revenues over expenditures (1,915,019) (1,915,019) (485,488) 1,429,531
Other financing sources (uses)
Designated cash (budgeted increase in cash)1,731,809 1,731,809 - (1,731,809)
Transfers in 183,210 183,210 183,210 -
Transfers out - - - -
Total other financing sources (uses)1,915,019 1,915,019 183,210 (1,731,809)
Net change in fund balance - - (302,278) (302,278)
Fund balance - beginning of year - - 1,892,269 1,892,269
Fund balance - end of year -$ -$ 1,589,991$ 1,589,991$
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, 2013
Budget (GAAP Basis) and Actual
Statement of Revenues, Expenditures and Changes in Fund Balance
106
STATE OF NEW MEXICO Statement B-26
Budget (GAAP Basis) and Actual
Variances
Favorable
Budget Amounts Actual (Unfavorable)
Original Final (GAAP Basis) Final to Actual
Operating revenues
Charges for services 2,898,882$ 2,878,042$ 3,073,949$ 195,907$
Total operating revenues 2,898,882 2,878,042 3,073,949 195,907
Operating expenses
Personnel services 689,168 707,646 658,499 49,147
Contractual services 1,300,514 1,370,073 1,224,201 145,872
Supplies 199,431 161,858 137,894 23,964
Maintenance and materials 76,965 65,259 58,642 6,617
Utilities 335,970 405,430 394,568 10,862
Equipment 3,172,804 3,392,130 - 3,392,130
Depreciation - - 1,362,718 (1,362,718)
Miscellaneous 249,607 250,974 31,236 219,738
Total operating expenses 6,024,459 6,353,370 3,867,758 2,485,612
Operating income (loss) (3,125,577) (3,475,328) (793,809) 2,681,519
Non-operating revenues (expenses)
Gross receipts taxes 458,184 458,184 449,504 (8,680)
Interest expense (139,767) (138,196) (136,499) 1,697
Interest income 4,380 4,692 4,037 (655)
Miscellaneous income 197,390 200,855 3,465 (197,390)
Total non-operating revenues
(expenses)520,187 525,535 320,507 (205,028)
Income (loss) before transfers and grants (2,605,390) (2,949,793) (473,302) 2,476,491
Transfers - - (13,616) (13,616)
State and federal capital grants 1,973,903 1,993,572 1,624,150 (369,422)
Change in net position (631,487)$ (956,221)$ 1,137,232$ 2,093,453$
Total net position, beginning of year 25,122,256
Total net position, end of year 26,259,488$
The accompanying notes are an integral part of these financial statements
For the Year Ended June 30, 2013
Town of Taos
Statement of Revenues, Expenses and Changes in Net Position
Water and Sewer Proprietary Fund
107
STATE OF NEW MEXICO Statement B-27
Budget (GAAP Basis) and Actual
Variances
Favorable
Budget Amounts Actual (Unfavorable)
Original Final (GAAP Basis) Final to Actual
Operating revenues
Charges for services 1,260,314$ 1,260,314$ 1,247,203$ (13,111)$
Total operating revenues 1,260,314 1,260,314 1,247,203 (13,111)
Operating expenses
Personnel services 107,518 111,290 95,435 15,855
Contractual services 759,400 762,759 720,665 42,094
Supplies 8,131 6,213 6,213 -
Maintenance and materials 65,350 61,340 61,339 1
Utilities 267,824 269,235 226,726 42,509
Equipment 298,943 325,714 - 325,714
Depreciation - - 41,218 (41,218)
Miscellaneous 275 4,989 4,989 -
Total operating expenses 1,507,441 1,541,540 1,156,585 384,955
Operating income (loss) (247,127) (281,226) 90,618 371,844
Non-operating revenues (expenses)
Gross receipts taxes - - - -
Interest expense - - - -
Interest income - - - -
Miscellaneous income 20,951 20,951 15,963 (4,988)
Total non-operating revenues
(expenses)20,951 20,951 15,963 (4,988)
Income (loss) before transfers and grants (226,176) (260,275) 106,581 366,856
Transfers - - - -
State and federal capital grants - - - -
Change in net position (226,176)$ (260,275)$ 106,581$ 366,856$
Total net position, beginning of year 1,428,314
Total net position, end of year 1,534,895$
The accompanying notes are an integral part of these financial statements
For the Year Ended June 30, 2013
Town of Taos
Statement of Revenues, Expenses and Changes in Net Position
Solid Waste Proprietary Fund
108
STATE OF NEW MEXICO Statement B-28
Budget (GAAP Basis) and Actual
Variances
Favorable
Budget Amounts Actual (Unfavorable)
Original Final (GAAP Basis) Final to Actual
Operating revenues
Charges for services 964,526$ 964,551$ 987,468$ 22,917$
Total operating revenues 964,526 964,551 987,468 22,917
Operating expenses
Personnel services 288,494 276,435 291,297 (14,862)
Contractual services 291,352 287,330 59,866 227,464
Supplies 8,800 8,677 7,520 1,157
Maintenance and materials 123,935 118,263 97,021 21,242
Utilities 6,384 6,941 6,941 -
Depreciation - - 182,355 (182,355)
Miscellaneous 174,802 178,996 7,462 171,534
Total operating expenses 893,767 876,642 652,462 224,180
Operating income (loss) 70,759 87,909 335,006 247,097
Non-operating revenues (expenses)
Gross receipts taxes - - - -
Interest expense (22,568) (22,568) (21,767) 801
Interest income 49 1,188 22,789 21,601
Miscellaneous income 2,710 2,836 126 (2,710)
Total non-operating revenues
(expenses)(19,809) (18,544) 1,148 19,692
Income (loss) before transfers and grants 50,950 69,365 336,154 266,789
State capital grants - - - -
Transfers - - - -
Change in net position 50,950$ 69,365$ 336,154$ 266,789$
Total net position, beginning of year 1,885,650
Total net position, end of year 2,221,804$
The accompanying notes are an integral part of these financial statements
For the Year Ended June 30, 2013
Town of Taos
Statement of Revenues, Expenses and Changes in Net Position
Taos Regional Landfill Proprietary Fund
109
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110
SUPPORTING SCHEDULES
111
STATE OF NEW MEXICO Schedule I
Town of Taos Page 1 of 2
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 779,289$ 438,154$ 1,217,443$ -$
Judicial Bond Fund Municipal Court Checking 1,544 - - 1,544
Utility Construction Fund Checking 39,530 - - 39,530
Water & Sewer System Income Fund Checking 3,793,792 77,467 29,937 3,841,322
Certificate of Deposit - Investment CD 170,500 - - 170,500
Total US Bank 4,784,655 515,621 1,247,380 4,052,896
Centinel Bank
General Fund Checking 2,243,603 25,932 - 2,269,535
Water/Wastewater Improvement Fund Checking 142,525 - 8,779 133,746
Payroll Clearing Checking 5 - 5 -
1994 GRT Revenue Bond Acquisition Fund Checking 84,855 - - 84,855
HUD Account - Domestic Violence Shelter Checking 1 - 1 -
ACH Transfer Account Checking 104,002 - 103,902 100
Total Centinel Bank 2,574,991 25,932 112,687 2,488,236
Bank of Albuquerque- Investments
2001A Water & Sewer Revenue Bond
Retirement
U.S. Treasury
Mutual Fund 61,892 - - 61,892
2004 Taos Regional Landfill Revenue Bond
Reserve
U.S. Treasury
Mutual Fund 137,630 - - 137,630
2008A Taos Regional Landfill Debt Service U.S. Treasury
Mutual Fund 100,263 - - 100,263
2008 Gross Receipts Tax Revenue Bond Reserve U.S. Treasury
Mutual Fund 169,862 - - 169,862
1999 Gasoline Tax Acquisition U.S. Treasury
Mutual Fund 1,160,230 - - 1,160,230
2010a Phase I Multi Phased Recreation Park U.S. Treasury
Mutual Fund 181,232 - - 181,232
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 197,390 - - 197,390
Total Bank of Albuquerque 3,785,012 - - 3,785,012
New Mexico Finance Authority - Investments
2007 NMFA Land Purchase State Treasurer
Debt Service 41 - - 41
2004 Taos Regional Landfill Revenue Bond
Reserve
State Treasurer
Debt Service 500 - - 500
2008A Taos Regional Landfill Debt Service State Treasurer
Debt Service 1,091 - - 1,091
2010 Phase II Wastewater Treatment Plant
Rehab
State Treasurer
Debt Service 545 - - 545
2010 Phase I Multi-phased Rec. Park State Treasurer
Debt Service 1,213 - - 1,213
1999 Gasoline Tax Acquisition State Treasurer
Debt Service 342 - - 342
Total New Mexico Finance Authority 3,732 - - 3,732
Total 11,148,390$ 541,553$ 1,360,067$ 10,329,876
New Mexico State Treasurer Local Government Investment Pool 4,158,731
Add: petty cash 1,550
Total deposits and investments 14,490,157$
See independent auditors' report
June 30, 2013
112
STATE OF NEW MEXICO Schedule I
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 5,347,587$
Investments - Exhibit A-1 4,269,231
Restricted cash and cash equivalents - Exhibit A-1 4,803,354
Fiduciary funds cash and investments - Exhibit E-1 69,985
Total deposits and investments 14,490,157$
June 30, 2013
113
STATE OF NEW MEXICO Schedule II
Description of Fair Market/Par
Name of Pledged CUSIP Value at Location
Depository Collateral Maturity Number June 30, 2013 of Safekeeper
US Bank
FNMA 8/1/2025 31410K7E8 678,057$ Federal Home Loan Bank, Dallas, TX
FNMA 11/1/2025 31419KG25 3,370,052 Federal Home Loan Bank, Dallas, TX
FNMA 1/1/2026 3138A35S2 427,362 Federal Home Loan Bank, Dallas, TX
4,475,471
Centinel Bank
Lea County School 1/15/2017 521513BR1 179,984 *Independent Bankers Bank, Dallas TX
San Juan College NM 8/1/2013 798359HY4 375,000 *Independent Bankers Bank, Dallas TX
Ruidoso SD GO 8/1/2021 781338HR2 250,000 *Independent Bankers Bank, Dallas TX
Pojoaque SCH 8/1/2014 73085PAYS 29,997 *Independent Bankers Bank, Dallas TX
FNMA 1612 1/1/2017 3138E5Y1 404,070 Independent Bankers Bank, Dallas TX
1,239,051
Total Pledged Collateral 5,714,522$
See independent auditors' report
June 30, 2013
Town of Taos
Schedule of Collateral Pledged by Depository for Public Funds
* As per NMSA 2.2.2.10 (N) (4), the value of collateral consisting of obligations of the State of New Mexico, its
agencies, institutions, counties, municipalities or other subdivisions shall be par value.
114
Schedule III
Balance Balance
June 30, 2012 Additions Deletions June 30, 2013
Assets
Cash 7,734$ $ 16,532 $ 14,281 9,985$
Investments 60,000 - - 60,000
Total assets 67,734$ 16,532$ 14,281$ 69,985$
Liabilities
Deposits payable 67,177$ 8,665$ 6,500$ 69,342$
Due to other entities 557 7,867 7,781 643
Total liabilities 67,734$ 16,532$ 14,281$ 69,985$
STATE OF NEW MEXICO
See independent auditors' report
For the Year Ended June 30, 2013
Schedule of Changes in Fiduciary Assets and Liabilities - Agency Funds
Town of Taos
115
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, 2013
STATE OF NEW MEXICO
Town of Taos
Schedule of Joint Powers Agreements
See independent auditors' report
116
Schedule IV
Period Cost to Town
Town
Contributions Audit Responsibility
40 Years from 2009, with option to
renew
$2,140,012 for
Phase I; unknown
for other phases
None to date Taos Municipal School
District
November 20, 2007 to January 31,
2028
Indeterminate Indeterminate County of Taos
July 6, 1998 until terminated Estimated $219,494
per year
$243,694 Town of Taos
50 years from November 2, 2000 Dependent on
landfill expenses
None to date Town of Taos
117
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118
COMPLIANCE SECTION
119
Accounting & Consulting Group, LLP
Certified Public Accountants
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
Hector Balderas
New Mexico State Auditor
The United States Office of Management and Budget and
The Town Council
Town of Taos
Taos, New Mexico
We have audited, 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, 2013, 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 supplemental
information, and have issued our report thereon dated October 15, 2013.
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 2010-01 and FS 2012-01.
120
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Town's financial statements are free of material misstatement, we
performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance
with 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 are required to be reported under
Government Auditing Standards and which are described in the accompanying schedule of findings and questioned costs as items
FS 2013-001, FS 2013-002, FS 2013-003, and FS 2013-004.
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
October 15, 2013
121
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122
FEDERAL FINANCIAL ASSISTANCE
123
Accounting & Consulting Group, LLP
Certified Public Accountants
REPORT ON COMPLIANCE FOR EACH MAJOR FEDERAL PROGRAM; REPORT ON INTERNAL CONTROL
OVER COMPLIANCE
INDEPENDENT AUDITORS’ REPORT
Hector Balderas
New Mexico State Auditor
The United States Office of Management and Budget and
The Town Council
Town of Taos
Taos, New Mexico
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, 2013. 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, 2013.
124
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 an 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
October 15, 2013
125
STATE OF NEW MEXICO Schedule V
Town of Taos Page 1 of 2
Schedule of Expenditures of Federal Awards
For the Year Ended June 30, 2013
CFDA
Number
Federal Grant
Number
Federal
Expenditures
16.523 11-690-12421 $ 130,664
Edward Byrne Memorial- Repeater Site Upgrades 16.728 2012-SS-TO- 13,138
143,802
Community Development Block Grant (1)14.228 10-C-NR-I-01-G- 480,000
14.235 NM02B601005 150,000
Total U.S. Department of Housing & Urban Development 630,000
Federal Aviation Administration (FAA)
Airport Improvements Program - EIS Phase 3A (1)20.106 3-35-0041-021- 914,071
State of Good Repair Grant 20.525 M01157 260,743
Federal Transit - Capital Investment Grants 20.500 NM-03-0041 115,042
Total U.S. Department of Transportation 1,289,856
$ 2,063,658
(1) Denotes Major Federal Financial Assistance Program
See independent auditors' report
Federal Grantor or Pass-Through Grantor/ Program Title
U.S. Department of Justice
Taos County Juvenile Justice
U.S. Department of Housing & Urban Development Passed Through the
State of New Mexico, Department of Finance & Administration
Community Against Violence
See accompanying notes to the schedule of expenditures of federal awards
Total Federal Financial Assistance
U.S. Department of Transportation
126
STATE OF NEW MEXICO Schedule V
Town of Taos Page 2 of 2
Schedule of Expenditures of Federal Awards
For the Year Ended June 30, 2013
Notes to Schedule of Expenditures of Federal Awards
3. Loan amounts
Reconciliation of Schedule of Expenditures of Federal Awards to Financial Statements:
2,063,658$
23,539,282
25,602,940$ 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 owed $18,000 to U.S. Department of Agriculture and $219,000 to the Rural Utilities Service as of June 30, 2013.
1. Basis of Presentation
127
STATE OF NEW MEXICO Schedule VI
Town of Taos Page 1 of 5
Schedule of Findings and Questioned Costs
June 30, 2013
Section I – Summary of Audit Results
Financial Statements:
1. Type of auditors’ report issued Unmodified
2. Internal control over financial reporting:
a. Material weaknesses identified? No
b. Significant deficiencies identified not considered to be material weaknesses? Yes
c. Noncompliance material to the financial statements noted? No
Federal Awards:
1. Internal control over major programs:
a. Material weaknesses identified? No
b. Significant deficiencies identified not considered to be material weaknesses? No
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? No
4. Identification of major programs:
CFDA
Number Federal Program
14.228 Community Development Block Grant
20.106 Airport Improvements Program- EIS Phase 3A
5. Dollar threshold used to distinguish between type A and type B programs: $300,000
6. Auditee qualified as a low-risk auditee under the requirements set forth by
OMB Circular A-133 section 530? No
128
STATE OF NEW MEXICO Schedule VI
Town of Taos Page 2 of 5
Schedule of Findings and Questioned Costs
June 30, 2013
Section II – Prior Year Audit Findings
Prior Year Audit Findings
Financial Statement Findings
2010-01 Design Deficiencies in Internal Control
over Financial Reporting Repeated and Modified
2011-01 Noncompliance of Town Policy Resolved
2012-01 Weakness in Design Related to Internal Control
Over Receipts Repeated
2012-02 Cash Appropriation in Excess of Available Cash
Balances Resolved
Section III – Financial Statement Findings and Questioned Costs
FS 2010-01 Design Deficiencies in Internal Control over Financial Reporting (Significant Deficiency)
Condition: During our internal control evaluations, we noted the following deficiencies:
During our review of annual leave and timesheet hours, we noted there is not review, oversight, or
monitoring process of employees leave cards and leave balances and hours worked.
Criteria: NMAC 6.20.2.11 states:
The internal control structure shall demonstrate that the Town identifies applicable laws and regulations, and that
procedures are designed to provide reasonable assurance that the Town complies with those laws and regulations.
Internal control procedures shall be established, implemented and documented through Town correspondence,
manuals, training, and other additional methods. Appropriate internal control procedures shall be adopted by the
Council within a Town to safeguard its assets, check the accuracy and reliability of its accounting data, promote
operational efficiency, and encourage adherence to prescribed managerial policies. The internal control structure shall
address all Town transactions.
Effect: Because certain internal controls have weaknesses in design, key controls are not in place to properly
safeguard assets and prevent or detect material misstatements due to errors or fraud.
Cause: The Town has not performed a formalized and documented risk assessment process for those key controls in
place to prevent and detect errors or fraud in all departments.
Auditors’ Recommendations: The Town should ensure that a comprehensive internal control structure over financial
information is designed, documented, and implemented for each department. Management should follow and ensure
that all staff follows the Town’s documented internal control procedures.
Agency’s Response: Management agrees with the auditor’s observation about the inconsistency among the
departments to properly review time sheets for their salaried employees. This year was the first year we implemented
the requirement for reviewing the timesheets for salaried employees. As the departments are still adapting to the new
procedure, we have not yet attained 100% compliance. To enforce this new policy, the Town Manager has issued a
directive that any timesheets that are not properly reviewed and approved will cause the interested employee to miss a
paycheck for that period.
129
STATE OF NEW MEXICO Schedule VI
Town of Taos Page 3 of 5
Schedule of Findings and Questioned Costs
June 30, 2013
FS 2012-01 Weakness in Design Related to Internal Controls Over Receipts (Significant Deficiency)
Condition: During our inquiry and observation of the Town’s landfill, it was noted that there was a lack of internal
control in regards to cash collection processes.
Criteria: According to NMSA 6-10-2 Public money; cash books; daily balance; public record, it is the duty of every
public official or agency of this state the receives or disburses public money to maintain a cash record in which it is
entered daily, in detail, all items of receipts and disbursements of public money. The cash record shall be balanced
daily so as to show the balance of public money on hand at the close of each day’s business.
Effect: Because these departments collect public funds in multiple forms including cash, misappropriation of assets
can occur.
Cause: Management and those in charge of governance have not developed a formal monitoring or risk assessment
process for all departments.
Auditors’ Recommendations: We recommend the Town implement a review process of all departments and assess
risks associated. Furthermore, develop an internal control process to mitigate the risk of fraud or misappropriation of
assets.
Agency’s Response: Management agrees with the auditors’ observations. After determining that the cash in question
does not justify a major investment of equipment in this remote location, we instituted instead a new procedure to
conduct frequent random audits on site. We also implemented the practice of issuing duplicate hard copy receipts for
each cash transaction.
FS 2013-001 Campaign Contribution Form (Other Matter)
Condition: During our testwork of procurement it was noted that the Town required a campaign disclosure form to
be provided with the submittal of the sealed bid. The vendor that was awarded the bid was missing this signed
document in one of five instances.
Criteria: According to Town written requirements for request for bid, Section 6 stipulated that a Campaign
Contribution Form be submitted for consideration from all vendors submitting a sealed bid.
Effect: Vendor who submitted an incomplete bid package was awarded the bid.
Cause: The form was overlooked as not being provided as this was a requirement in the submission of a complete
bid.
Auditors’ Recommendations: We recommend the Town follow all requirements put forth by the Town in regards to
procurement.
Agency’s Response: In this case, the Procurement Officer waived this as a technical irregularity which is allowed
under NMSA 13-1-132, stating, ‘which does not alter the price, quality or quantity of the services, construction or
items of tangible personal property bid or offered’. As part of the contract process this campaign contribution was
executed at that time and placed in the purchase order backup documentation.
130
STATE OF NEW MEXICO Schedule VI
Town of Taos Page 4 of 5
Schedule of Findings and Questioned Costs
June 30, 2013
FS 2013-002 Small Purchases (Other Matter)
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 two instances out of two, 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 responsible individual was unaware of the requirement written in the “Town of Taos Purchasing Policy”
as this individual is new to the position.
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 auditor’s observation. The responsible individual had been
operating under the misunderstanding that he was complying with this section of the procurement policy by simply
making detailed notations on a calendar. He has now adopted the proper practice of sending a memo to the
Procurement Officer indicating the solicitations made to obtain additional price quotations.
FS 2013-003 Safekeeping of Seized Property Pending Disposition (Other Matter)
Condition: During random site visits at locations maintained by the Town it was noted that seized property was
located in an undesignated and non- secured location.
Criteria: According to NMSA 1978 31-27-8 “Safekeeping of seized property pending disposition, A. Seized
currency alleged to be subject to forfeiture shall be deposited with the clerk of the district court in an interest-
bearing account. B. Seized property other than currency or real property, not required by federal or state law to be
destroyed, shall be: (1) placed under seal; and (2) removed to a place designated by the district court; or (3) held in
custody of a law enforcement agency. C. Property shall be kept by the custodian in a manner to protect it from theft
or damage and, if ordered by the district court, insured against those risks.
Effect: Improper safe guarding of seized property could interfere with possible criminal cases or evidence
maintained.
Cause: The seized property was overlooked as being left during a department move to a location.
Auditors’ Recommendations: We recommend the Town follow all requirements of state and federal law in regards to
seized property and maintenance and disposition of this property.
Agency’s Response: Management agrees with the auditors’ recommendations and corrective actions have been taken
to ensure this does not happen again. All case agents will follow Taos Police Department Policy and Procedure
“Property and Evidence Control” ADM.17.01-17.04.
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STATE OF NEW MEXICO Schedule VI
Town of Taos Page 5 of 5
Schedule of Findings and Questioned Costs
June 30, 2013
FS 2013-004 Annual Inventory (Other Matter)
Condition: The Town did not perform an annual capital asset inventory of all movable chattels and equipment on
the inventory listing.
Criteria: According to State Audit Rule 2.2.2.10 Y Capital Asset Inventory: (2) Section 12-6-10(A) NMSA 1978
requires each agency to conduct an annual physical inventory of movable chattels and equipment on the inventory list
at the end of each fiscal year. The agency shall certify the correctness of the inventory after the physical inventory.
This certification should be provided to the agency’s auditors.
Effect: Items could be present on the capital assets listing that do not exist or items could exist that are not on the
listing.
Cause: The Town has not completed an full annual inventory or has requested departments to complete an annual
inventory of movable chattels and equipment.
Auditors’ Recommendations: We recommend the Town perform an annual inventory and express the importance of
this annual inventory to all departments.
Agency’s Response: Management agrees with the auditor’s observation. In October, we conducted a Town-wide
inventory for the first time in many years. We will repeat this exercise next spring and make it an integral part of our
work plan every year.
FINDINGS – FEDERAL AWARDS
None
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STATE OF NEW MEXICO
Town of Taos
Other Disclosures
June 30, 2013
OTHER DISCLOSURES
Exit Conference
An exit conference was held on November 19, 2013. In attendance were the following:
Representing the Town of Taos:
Frederick Peralta Councilor
Oscar Rodriguez Town Manager
Abigail Adame Assistant Town Manager
Marietta Fambro Finance Director
Miranda Quintana Grants Administrator/Budget and Procurement
Representing Accounting & Consulting Group, LLP:
Robert Cordova, CPA Partner
Lorie Lawlis In-Charge
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.
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