2014 Audit Report
State of New Mexico
Town of Taos
Annual Financial Report
June 30, 2014
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INTRODUCTORY SECTION
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STATE OF NEW MEXICO
Town of Taos
Table of Contents
June 30, 2014
Exhibit Page
INTRODUCTORY SECTION
Table of Contents 5-6
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 37-62
SUPPLEMENTARY INFORMATION
Statement
Nonmajor Governmental Fund Descriptions 64-67
COMBINING AND INDIVIDUAL FUND STATEMENTS AND SCHEDULES
Combining Balance Sheet –Nonmajor Governmental Funds A-1 68-73
Combining Statement of Revenues, Expenditures and Changes in
Fund Balances – Nonmajor Governmental Funds A-2 74-79
Statement of Revenues, Expenditures and Changes in Fund Balance –
Budget (GAAP Basis) and Actual
Governmental Funds:
Fire Protection Special Revenue Fund B-1 80
Recreation Special Revenue Fund B-2 81
Lodger’s Tax Special Revenue Fund B-3 82
Local Government Correction Special Revenue Fund B-4 83
Law Enforcement Protection Special Revenue Fund B-5 84
Civic Center Special Revenue Fund B-6 85
Domestic Violence Shelter Special Revenue Fund B-7 86
Public Transportation Special Revenue Fund B-8 87
Community Grants Special Revenue Fund B-9 88
Municipal Road Gasoline Tax Special Revenue Fund B-10 89
¼ Cent Municipal Gross Receipts Tax Special Revenue Fund B-11 90
5
STATE OF NEW MEXICO
Town of Taos
Table of Contents
June 30, 2014
Statement/Schedule Page
Statement of Revenues, Expenditures and Changes in Fund Balance –
Budget (GAAP Basis) and Actual
Historical District Special Revenue Fund B-12 91
Communications Special Revenue Fund B-13 92
Confidential Informant Special Revenue Fund B-14 93
2009 NMFA PPRF Disadvantage Program-Eco Park Debt Service Fund B-15 94
2008 Gross Receipts Tax Revenue Bond Retirement Debt Service Fund B-16 95
NMFA Debt Service Reserve Eco Park Debt Service Fund B-17 96
2007 NMFA Land Purchase Debt Service Fund B-18 97
2011 PPRF Street Improvement Debt Service Fund B-19 98
Camino Rael Building Debt Service Fund B-20 99
2011 PPRF Street Improvement Reserve Debt Service Fund B-21 100
Facilities Improvements Capital Projects Fund B-22 101
Capital Projects Capital Projects Fund B-23 102
Vehicle Replacement Capital Projects Fund B-24 103
1994 Gross Receipts Tax Revenue Bond Acquisition Capital Projects Fund B-25 104
1999 Gasoline Tax Acquisition Capital Projects Fund B-26 105
Airport Construction Capital Projects Fund B-27 106
Statement of Revenues, Expenses and Changes in Net Position –
Budget (GAAP Basis) and Actual –Proprietary Funds
Water and Sewer Fund B-28 107
Solid Waste Fund B-29 108
Taos Regional Landfill Fund B-30 109
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 129-133
OTHER DISCLOSURES 135
6
STATE OF NEW MEXICO
Town of Taos
Official Roster
June 30, 2014
Town Council
Name Title
Daniel Barrone Mayor
Judith Cantu Councilor
George “Fritz” Hahn Councilor
Andrew Gonzales Councilor
Frederick Peralta Councilor
Administration
Richard Bellis Town Manager
Marietta Fambro Finance Director
Renee Lucero Town Clerk
Richard Chavez
Floyd W. Lopez
Municipal Judge
Town Attorney
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FINANCIAL SECTION
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2700 San Pedro NE Albuquerque NM 87110 www.acgsw.com T: 505.883.2727 F: 505.884.6719
INDEPENDENT AUDITORS’ REPORT
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, 2014, 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, 2014, 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, 2014, 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, 2014, 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, introductory section, and
Supporting Schedules I through IV required by Section 2.2.2 NMAC are presented for purposes of additional analysis and are not a
required part of the basic financial statements.
The Schedule of Expenditures of Federal Awards and Supporting Schedules I through IV required by Section 2.2.2 NMAC are the
responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare
the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial
statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting
and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional
procedures in accordance with the auditing standards generally accepted in the United States of America. In our opinion, the Schedule of
Expenditures of Federal Awards and Supporting Schedules I through IV required by Section 2.2.2 NMAC are fairly stated, in all material
respects, in relation to the basic financial statements as a whole.
The introductory section has not been subjected to the auditing procedures applied in the audit of the basic financial statements, and
accordingly, we do not express an opinion or provide any assurance on it.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated November 24, 2014, on our consideration of the
Town’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts
and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial
reporting and compliance and the results of that testing, and not to provide an opinion on the internal control over financial reporting or
on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering
the Town’s internal control over financial reporting and compliance.
Accounting & Consulting Group, LLP
Albuquerque, NM
November 24, 2014
11
State of New Mexico
Town of Taos
Management’s Discussion and Analysis
June 30, 2014
We are pleased to present the Town of Taos’s financial statements for the fiscal year ended June 30, 2014. 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 $78,896,980 (net position). Of this
amount, $6,535,807 (unrestricted net position) is available to meet the government’s ongoing obligations to its citizens and
creditors.
The Town’s total net position increase by $18,740 during the fiscal year. The majority of this overall increase is due to saw
increases in charges for services, capital grants and taxes.
As of June 30, 2014, the Town’s governmental funds reported combined ending net position balances of $49,927,357. Of this
total, $3,217,270 is designated for debt service and capital projects.
At the close of the current fiscal year, the unassigned fund balance for the general fund was $595,769, amounting to 5 percent
or 19 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 did not
acquire any debt during the year. Compensated absences have decreased from the prior year. The Town paid $1,444,805
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, 2014
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 37-62 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 68-79 of this report.
13
State of New Mexico
Town of Taos
Management’s Discussion and Analysis
June 30, 2014
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 $78,896,980 at the close of the current
fiscal year.
The significant portion of the Town of Taos’ net position represents the Town’s investment of $63,944,042 in capital assets (e.g., land
improvements, buildings, infrastructure and machinery & equipment), less any related outstanding debt used to acquire those assets.
The Town of Taos uses these capital assets to provide services to its citizens, so these assets are not available for future spending.
Although the Town of Taos’ investment in its capital assets is reported net of related debt, it should be noted that the resources needed
to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities.
Governmental Business-Type
Activities Activities Total
Assets
Current and other assets 8,170,668$ 5,215,378$ 13,386,046$
Restricted cash, cash equivalents & investments 652,205 3,349,802 4,002,007
Restricted investments 538,496 656,546 1,195,042
Bond issuance costs and discount - - -
Capital assets, net of accumulated 49,973,967 27,061,530 77,035,497
depreciation
Total assets 59,335,336 36,283,256 95,618,592
Liabilities
Current Liabilities 1,639,488$ 1,037,267$ 2,676,755$
Non-current liabilities 7,768,491 6,276,366 14,044,857
Total liabilities 9,407,979 7,313,633 16,721,612
Net Position
Net investment in capital assets 41,762,090 22,181,952 63,944,042
Restricted 4,687,731 3,729,400 8,417,131
Unrestricted 3,477,536 3,058,271 6,535,807
Total net position 49,927,357$ 28,969,623$ 78,896,980$
Total Liabilities and Net Position 59,335,336$ 36,283,256$ 95,618,592$
A portion of the Town of Taos’ governmental restricted net position of $4,687,731 (9 percent) represents resources that are subject to
restrictions related to covenants arising from the Town’s long-term debt issuance and capital projects. The remaining balance of
unrestricted net position, $3,477,536 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, 2014
Analysis of Changes in Net Position
The Town’s net position increased by $18,740 during the fiscal year. This increase is primarily the result of increased charges for
services, operating and capital grants and other taxes during the fiscal year.
Governmental Business-type
Revenues Activities Activities Total
Program revenues:
Charges for service 2,098,861$ 5,127,214$ 7,226,075$
Operating grants and contributions 1,098,353 - 1,098,353
Capital grants and contributions 2,306,154 2,306,154
General revenues:
Property taxes, levied for general purposes 1,013,404 - 1,013,404
Gross receipts taxes 9,885,238 504,349 10,389,587
Gasoline and auto distribution taxes 310,001 - 310,001
Other taxes 1,581,773 - 1,581,773
Interest income (loss)6,718 4,957 11,675
Miscellaneous income 19,384 20,348 39,732
Transfers - -
Loss on disposal of capital assets (17,494) - (17,494)
Total Revenues 18,302,392 5,656,868 23,959,260
Program expenses:
General government 7,213,063$ -$ 7,213,063$
Public safety 3,504,169 - 3,504,169
Public works 3,093,897 - 3,093,897
Culture and recreation 2,425,025 - 2,425,025
Health and welfare 700,083 - 700,083
Interest on long-term debt 300,851 - 300,851
Joint water and sewer - 4,447,804 4,447,804
Solid waste - 1,361,815 1,361,815
Taos Regional Landfill - 893,813 893,813
Total Expenses 17,237,088 6,703,432 23,940,520
Change in net position 1,065,304 (1,046,564) 18,740
Net Position, beginning 49,017,580 30,016,187 79,033,767
Net Position,restatement (note) 21)(155,527) (155,527)
Net Position, beginning as restated 48,862,053 30,016,187 78,878,240
Net Position, ending 49,927,357$ 28,969,623$ 78,896,980$
15
State of New Mexico
Town of Taos
Management’s Discussion and Analysis
June 30, 2014
Governmental activities. Governmental activities increased the Town of Taos’ net position by $1,065,304, primarily as the result of
increase in charges for services including an administrative fee for enterprise funds, capital grants and contributions and gross receipts
taxes. Revenues over expenditures were at a much better position than last year with net position of a $70,076 decrease.
Tax revenues account for $12,790,416 or 70 percent of governmental revenues. Tax revenues are made up of property, gross receipts,
gasoline and motor vehicle and other taxes.
The General fund received the majority of the Town’s program revenue, accounting for $3,404,507 or 18 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 $2,098,861or 12 percent of total governmental revenues. These
charges are for fees, fines and forfeitures, and licenses and permits.
Business-type activities. Business-type activities decreased the Town’s net position by $1,046,564.
The Town’s direct charges to users of business-type services made up $5,127,214 or 90 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 decreased by $181,406
from the previous year.
The Town included a one-time transfer out in the amount $721,500 to fund an asset management plan for the Joint Water and Sewer
System along with increased expenditures which contributed to the overall decrease in net position by $1,046,564. This is a significant
change from the previous year’s increase in the amount of $1,579,967.
FINANCIAL ANALYSIS OF THE TOWN’S FUNDS
The Town of Taos uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements.
Governmental funds. The focus of the Town of Taos’ governmental funds is to provide information on near-term inflows, outflows,
and balances of spendable resources. Such information is useful in assessing the Town of Taos’ financing requirements. In particular,
unassigned fund balance may serve as a useful measure of a government’s net resources available for spending at the end of the fiscal
year. Types of Governmental funds reported by the Town include the General Fund, Special Revenue Funds, Debt Service Funds and
Capital Projects Funds.
Revenues for governmental functions overall totaled approximately $18,226,824 in the fiscal year ended June 30, 2014, which
represents an increase of $1,395,595 from the fiscal year ended June 30, 2013. This is largely due to the increase in gross receipts,
federal capital grants, charges for services and miscellaneous revenues. Expenditures for governmental functions, totaling $17,976,844
increased by approximately $872,666 from the fiscal year ended June 30, 2013. This is largely due to the increase in expenditures
across the governmental functions with the exception of public safety and public works. In the fiscal year ended June 30, 2014,
revenues for governmental functions exceeded expenditures by approximately $249,980.
The General Fund is the chief operating fund of the Town of Taos. It is from here that the Town pays for the public safety and other
basic services it provides to its citizens. At the end of the current fiscal year, unassigned fund balance of the general fund was
$595,769.
The fund balance of the Town of Taos’ general fund increased by $573,688 during the current fiscal year, due to an increase in revenue
particularly gross receipt taxes and charges for services. Overall, the general fund’s performance resulted in revenues over expenditures
in the fiscal year ended June 30, 2014 of $1,081,088 an increase of $158,129 over the comparable figure from the prior year of
$922,959. The Town’s overall financial position improved with music venue for tourists and local alike bringing in a 13.99% increase
in one month of gross receipts taxes.
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 $3,058,271. The total decrease in net position for the
enterprise funds was ($1,046,564). 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, 2014
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, 2014. 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 $688,416 less than budgeted. This was primarily due to
general governmental favorable variance of $355,953. The difference between actual expenditures and budgeted expenditures is due to
various department not spending there projected costs along with personnel vacancy savings over the course of the fiscal year.
Budget Amounts
Original Final
Expenditures:
General government 4,632,472$ 4,701,005$ 4,345,052$ 355,953$
Public safety 3,488,319 3,431,188 3,203,936 227,252
Public works 973,024 978,169 951,842 26,327
Culture and recreation 1,472,555 1,462,608 1,382,627 79,981
Capital outlay - - 1,097 (1,097)
Total Expenditures 10,566,370$ 10,572,970$ 9,884,554$ 688,416$
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, 2014 amount to
$77,035,497 (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 $5,224 for governmental
activities and $1,735,317 for business-type activities (net of accumulated depreciation).
The significant additions to capital assets during the year were as follows:
$1,632,847 of additions to governmental infrastructure and equipment for completion and/or purchase of the following: 1)
Public Works – Dump Truck with plow and salt spreader, Old Talpa Canon Road Improvements, and Over flight Stipulators at
the Taos Regional Airport.
There were no additions to business-type infrastructure.
17
State of New Mexico
Town of Taos
Management’s Discussion and Analysis
June 30, 2014
Capital Asset and Debt Administration (continued)
Governmental Business-like
Activities Activities Total
Land 6,277,809$ 262,422$ 6,540,231$
Constuction in progress 3,413,102 833,250 4,246,352
Land improvements 7,461,945 104,895 7,566,840
Buildings and improvements 34,414,256 4,656,981 39,071,237
Machinery and Equipment 16,580,069 8,878,308 25,458,377
Infrastructure 51,263,280 32,264,584 83,527,864
Total capital assets 119,410,461 47,000,440 166,410,901
Less: accumulated depreciation (69,436,494) (19,938,910) (89,375,404)
Total property, plant and equipment, net
of accumulated depreciation 49,973,967$ 27,061,530$ 77,035,497$
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
$15,380,230. There were no additions to long term debt during the year and one retirement for the USDA contract payable.
Town of Taos's Outstanding Debt
June 30, 2014
Governmental Business-type
Activities Activities Total
Revenue Bonds 4,965,000$ 1,960,000$ 6,925,000$
NMFA amd RUS Loans 3,246,877 2,918,978 6,165,855
USDA Contract Payable - - -
Compensated absences 544,027 68,327 612,354
Landfill Closure Liability - 1,677,021 1,677,021
Total long-term liabilities 8,755,904$ 6,624,326$ 15,380,230$
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, 2014
REQUESTS FOR INFORMATION
This financial report is designed to provide a general overview of the Town of Taos’ finances for all of those with an interest in the
government’s finances. Questions concerning any of the information provided in this report or requests for additional financial
information should be addressed to the Town of Taos – Finance Director, Town of Taos, 400 Camino de la Placita, Taos, New Mexico,
87571, (575) 751-2024.
19
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20
BASIC
FINANCIAL STATEMENTS
21
Governmental
Activities
Business-type
Activities Total
Assets
Current assets
Cash and cash equivalents 2,866,291$ 2,981,153$ 5,847,444$
Investments 2,534,892 1,638,679 4,173,571
Receivables:
Property taxes 180,791 - 180,791
Other taxes 1,914,482 - 1,914,482
Due from other governments 648,826 35,838 684,664
Customer receivables, net - 585,094 585,094
Internal balances 25,386 (25,386) -
Total current assets 8,170,668 5,215,378 13,386,046
Noncurrent assets
Restricted cash and cash equivalents 652,205 3,349,802 4,002,007
Restricted investments 538,496 656,546 1,195,042
Capital assets 119,410,461 47,000,440 166,410,901
Less: accumulated depreciation (69,436,494) (19,938,910) (89,375,404)
Total noncurrent assets 51,164,668 31,067,878 82,232,546
Total assets 59,335,336$ 36,283,256$ 95,618,592$
STATE OF NEW MEXICO
Primary Government
The accompanying notes are an integral part of these financial statements
June 30, 2014
Statement of Net Position
Town of Taos
22
Exhibit A-1
Governmental
Activities
Business-type
Activities Total
Liabilities
Current liabilities
Accounts payable 387,539$ 335,100$ 722,639$
Accrued payroll 183,321 26,047 209,368
Deposits held in trust for others 5,103 276,948 282,051
Accrued compensated absences 363,120 25,230 388,350
Accrued interest 30,064 50,612 80,676
Current portion of bonds payable 290,000 52,000 342,000
Current portion of loans and contracts payable 380,341 271,330 651,671
Total current liabilities 1,639,488 1,037,267 2,676,755
Noncurrent liabilities
Accrued compensated absences 180,907 43,097 224,004
Accrued landfill closure costs - 1,677,021 1,677,021
Bond premiums, net of accumulated
amortization of $20,930 46,048 - 46,048
Bonds payable 4,675,000 1,908,600 6,583,600
Loans and contracts payable 2,866,536 2,647,648 5,514,184
Total noncurrent liabilities 7,768,491 6,276,366 14,044,857
Total liabilities 9,407,979 7,313,633 16,721,612
Net Position
Net investment in capital assets 41,762,090 22,181,952 63,944,042
Restricted for:
Debt service 357,081 2,818,359 3,175,440
Capital projects 2,860,189 - 2,860,189
Special revenue 1,470,461 - 1,470,461
Landfill - 911,041 911,041
Unrestricted 3,477,536 3,058,271 6,535,807
Total net position 49,927,357 28,969,623 78,896,980
Total liabilities and net position 59,335,336$ 36,283,256$ 95,618,592$
Primary Government
23
Functions/Programs
Expenses
Charges for
Services
Operating
Grants and
Contributions
Capital Grants
and
Contributions
Governmental Activities:
General government 7,213,063$ 1,879,769$ 400,464$ -$
Public safety 3,504,169 - 282,704 -
Public works 3,093,897 - - 2,306,154
Culture and recreation 2,425,025 152,462 - -
Health and welfare 700,083 66,630 415,185 -
Interest on long-term debt 300,851 - - -
Total governmental activities 17,237,088 2,098,861 1,098,353 2,306,154
Business-type Activities:
Water and sewer 4,447,804 2,784,761 - -
Solid waste 1,361,815 1,275,688 - -
Taos regional landfill 893,813 1,066,765 - -
Total business-type activities 6,703,432 5,127,214 - -
Total primary government 23,940,520$ 7,226,075$ 1,098,353$ 2,306,154$
General Revenues and Transfers:
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
Loss on disposal of capital assets
Total general revenues and transfers
Change in net position
Net position, beginning
Net position- restatement (Note 21)
Net position, beginning as restated
Net position, ending
STATE OF NEW MEXICO
Town of Taos
Statement of Activities
For the Year Ended June 30, 2014
The accompanying notes are an integral part of these financial statements
Program Revenues
24
Exhibit A-2
Governmental
Activities
Business-Type
Activities Total
(4,932,830)$ -$ (4,932,830)$
(3,221,465) - (3,221,465)
(787,743) - (787,743)
(2,272,563) - (2,272,563)
(218,268) - (218,268)
(300,851) - (300,851)
(11,733,720) - (11,733,720)
- (1,663,043) (1,663,043)
- (86,127) (86,127)
- 172,952 172,952
- (1,576,218) (1,576,218)
(11,733,720) (1,576,218) (13,309,938)
1,013,404 - 1,013,404
9,885,238 504,349 10,389,587
310,001 - 310,001
454,319 - 454,319
1,127,454 - 1,127,454
6,718 4,957 11,675
19,384 20,348 39,732
(17,494) - (17,494)
12,799,024 529,654 13,328,678
1,065,304 (1,046,564) 18,740
49,017,580 30,016,187 79,033,767
(155,527) - (155,527)
48,862,053 30,016,187 78,878,240
49,927,357$ 28,969,623$ 78,896,980$
Net (Expense) Revenue and Changes in Net Position
25
Exhibit B-1
Page 1 of 2
General Fund
Airport
Construction
Other
Governmental
Funds Total
Assets
Cash and cash equivalents 1,281,478$ 287,615$ 1,949,403$ 3,518,496$
Investments 1,367,475 - 1,705,913 3,073,388
Receivables:
Property taxes 180,791 - - 180,791
Other taxes 1,436,688 - 477,794 1,914,482
Due from other governments 15,129 302,307 331,390 648,826
Due from other funds 25,386 - - 25,386
Total assets 4,306,947$ 589,922$ 4,464,500$ 9,361,369$
Liabilities
Accounts payable 112,698$ 98,467$ 176,374$ 387,539$
Accrued payroll 158,464 - 24,857 183,321
Deposits held in trust for others - - 5,103 5,103
Total liabilities 271,162 98,467 206,334 575,963
Deferred inflows of resources
Unavailable revenue- property taxes 135,947 - - 135,947
Unavailable revenue- delinquent lodgers tax - - 126,150 126,150
Total deferred inflows of resources 135,947 - 126,150 262,097
Fund balances
Spendable
Restricted for:
General government - - 545,504 545,504
Public safety - - 127,512 127,512
Culture and recreation - - 363,344 363,344
Fire protection - - 280,671 280,671
Health and welfare - - 93,502 93,502
Debt service expenditures - - 355,901 355,901
Capital projects - 491,455 2,368,005 2,859,460
Committed for:
Minimum fund balance 823,713 - - 823,713
Subsequent year's expenditures 2,480,356 - - 2,480,356
Unassigned 595,769 - (2,423) 593,346
Total fund balances 3,899,838 491,455 4,132,016 8,523,309
Total liabilities, deferred inflows of resources,
and fund balances 4,306,947$ 589,922$ 4,464,500$ 9,361,369$
June 30, 2014
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 8,523,309$
Capital assets used in governmental activities are not financial resources
and, therefore, are not reported in the funds 49,973,967
Delinquent property taxes and lodger's tax settlement not collected within sixty
days after year end are not considered "available" revenues and are considered
to be unavailable revenue in the fund financial statements, but are considered
revenue in the Statement of Activities 262,097
Interest on long-term debt is not accrued in the fund financial statements
unless it is due and payable:
Accrued interest (30,064)
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 (544,027)
Bond premiums (46,048)
Bonds payable (4,965,000)
Loans and contracts payable (3,246,877)
Total net position of governmental activities 49,927,357$
June 30, 2014
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
Airport
Construction
Other
Governmental
Funds Total
Revenues
Taxes
Property 1,013,248$ -$ -$ 1,013,248$
Gross receipts 8,242,313 - 1,642,925 9,885,238
Gasoline and motor vehicle taxes 210,478 - 99,523 310,001
Lodger's taxes - - 1,034,548 1,034,548
Other 454,319 - - 454,319
Intergovernmental income .
Federal operating grants - - 139,702 139,702
Federal capital grants - 2,066,562 - 2,066,562
State operating grants 108,460 - 850,191 958,651
State capital grants - 183,881 55,711 239,592
Charges for services 337,756 - 1,022,894 1,360,650
Licenses and fees 587,964 - 150,247 738,211
Investment income (loss)3,482 - 3,236 6,718
Miscellaneous 7,622 - 11,762 19,384
Total revenues 10,965,642 2,250,443 5,010,739 18,226,824
Expenditures
Current
General government 4,313,512 - 1,232,834 5,546,346
Public safety 3,203,936 - 222,409 3,426,345
Public works 951,842 - 141,999 1,093,841
Culture and recreation 1,382,627 - 1,027,244 2,409,871
Health and welfare - - 645,200 645,200
Capital outlay 32,637 2,366,293 1,482,947 3,881,877
Debt service
Principal - - 670,604 670,604
Interest - - 302,760 302,760
Total expenditures 9,884,554 2,366,293 5,725,997 17,976,844
Excess (deficiency) of revenues over
expenditures 1,081,088 (115,850) (715,258) 249,980
Other financing sources (uses)
Proceeds from sale of capital assets - - 501 501
Transfers in 4,614,409 540,222 2,671,704 7,826,335
Transfers out (5,121,809) - (2,704,526) (7,826,335)
Total other financing sources (uses)(507,400) 540,222 (32,321) 501
Net change in fund balances 573,688 424,372 (747,579) 250,481
Fund balance - beginning of year 3,326,150 67,083 4,879,595 8,272,828
Fund balance - end of year 3,899,838$ 491,455$ 4,132,016$ 8,523,309$
For the Year Ended June 30, 2014
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 250,481$
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 3,881,877
Depreciation expense (3,869,106)
Loss of disposition of capital assets (17,494)
Proceeds from sale of capital assets (501)
Revenues in the Statement of Activities that do not provide current financial
resources are not reported as revenue in the funds:
Increase in unavailable revenue related to property taxes receivable 156
Increase in lodger's tax settlement revenue not received within the period of availability 92,906
The issuance of long-term debt (e.g. bonds, loans, leases) provides current financial
resources to governmental funds, while the repayment of the principal of long-term
debt consumes the current financial resources of govermental funds. Neither
transaction, however, has any effect on net position. Also, governmental funds
report the effect of premiums, discounts, and similar items when debt is first issued,
whereas these amounts are deferred and amortized in the Statement of Activities:
Decrease in accrued interest 1,909
Decrease in accrued compensated absences 50,608
Amortization of bond premiums 3,864
Principal payments on bonds payable 280,000
Principal payments on loans payable 372,604
Payments on contracts payable 18,000
Change in net position of governmental activities 1,065,304$
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, 2014
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 957,979$ 957,979$ 1,013,248$ 55,269$
Gross receipts 7,858,248 8,201,629 8,242,313 40,684
Gas and motor vehicle 255,315 255,422 210,478 (44,944)
Other 374,357 374,357 454,319 79,962
Intergovernmental income
Federal operating grants 10,000 10,000 - (10,000)
Federal capital grants - - - -
State operating grants 54,877 54,877 108,460 53,583
State capital grants - - - -
Charges for services 411,189 383,328 337,756 (45,572)
Licenses and fees 674,704 599,822 587,964 (11,858)
Interest income 5,236 5,236 3,482 (1,754)
Miscellaneous 34,271 34,671 7,622 (27,049)
Total revenues 10,636,176 10,877,321 10,965,642 88,321
Expenditures
Current
General government 4,632,472 4,701,005 4,345,052 355,953
Public safety 3,488,319 3,431,188 3,203,936 227,252
Public works 973,024 978,169 951,842 26,327
Culture and recreation 1,472,555 1,462,608 1,382,627 79,981
Health and welfare - - - -
Capital outlay - - 1,097 (1,097)
Total expenditures 10,566,370 10,572,970 9,884,554 688,416
Excess (deficiency) of revenues over expenditures 69,806 304,351 1,081,088 776,737
Other financing sources (uses)
Designated cash (budgeted increase in cash)427,489 422,677 - (422,677)
Transfers in 4,326,451 4,591,410 4,614,409 22,999
Transfers out (4,823,746) (5,318,438) (5,121,809) 196,629
Total other financing sources (uses)(69,806) (304,351) (507,400) (203,049)
Net change in fund balance - - 573,688 573,688
Fund balance - beginning of year - - 3,326,150 3,326,150
Fund balance - end of year -$ -$ 3,899,838$ 3,899,838$
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, 2014
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 1,484,275$ 596,641$ 900,237$ 2,981,153$
Investments 1,314,179 249,100 75,400 1,638,679
Due from other governments 35,838 - - 35,838
Customer receivables, net 354,375 123,733 106,986 585,094
Total current assets 3,188,667 969,474 1,082,623 5,240,764
Noncurrent assets
Restricted cash and cash equivalents 2,582,039 - 767,763 3,349,802
Restricted investments 513,268 - 143,278 656,546
Capital assets 41,656,579 1,073,986 4,269,875 47,000,440
Less: accumulated depreciation (17,884,613) (473,139) (1,581,158) (19,938,910)
Total noncurrent assets 26,867,273 600,847 3,599,758 31,067,878
Total assets 30,055,940$ 1,570,321$ 4,682,381$ 36,308,642$
Liabilities and net position
Liabilities
Current liabilities
Accounts payable 115,245$ 96,022$ 123,833$ 335,100$
Accrued payroll 17,225 3,361 5,461 26,047
Meter deposits payable 276,948 - - 276,948
Accrued compensated absences 24,630 600 - 25,230
Interfund payable 14,961 5,379 5,046 25,386
Accrued interest payable 48,504 - 2,108 50,612
Current portion of bonds payable 52,000 - - 52,000
Current portion of loans and contracts payable 94,943 - 176,387 271,330
Total current liabilities 644,456 105,362 312,835 1,062,653
Noncurrent liabilities
Accrued compensated absences 24,387 - 18,710 43,097
Accrued landfill closure costs - - 1,677,021 1,677,021
Bonds payable 1,908,600 - - 1,908,600
Loans payable 2,370,231 - 277,417 2,647,648
Total noncurrent liabilities 4,303,218 - 1,973,148 6,276,366
Total liabilities 4,947,674 105,362 2,285,983 7,339,019
Net position
Net investment in capital assets 19,346,192 600,847 2,234,913 22,181,952
Restricted for:
Debt service 2,818,359 - - 2,818,359
Landfill - - 911,041 911,041
Unrestricted 2,943,715 864,112 (749,556) 3,058,271
Total net position 25,108,266 1,464,959 2,396,398 28,969,623
Total liabilities and net position 30,055,940$ 1,570,321$ 4,682,381$ 36,308,642$
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, 2014
Proprietary Funds
31
Exhibit D-2
Water and
Sewer Solid Waste Total
Operating revenues
Charges for services 2,784,761$ 1,275,688$ 1,066,765$ 5,127,214$
Total operating revenues 2,784,761 1,275,688 1,066,765 5,127,214
Operating expenses
Personnel services 721,496 129,038 258,086 1,108,620
Contractual services 1,151,553 798,341 249,620 2,199,514
Supplies 134,944 8,438 6,302 149,684
Repairs and maintenance 74,213 72,518 121,956 268,687
Utilities 412,653 228,266 7,385 648,304
Depreciation 1,621,713 56,571 180,382 1,858,666
Other costs 200,279 68,643 53,173 322,095
Total operating expenses 4,316,851 1,361,815 876,904 6,555,570
Operating income (loss) (1,532,090) (86,127) 189,861 (1,428,356)
Non-operating revenues (expenses)
Gross receipts taxes 504,349 - - 504,349
Interest expense (130,953) - (16,909) (147,862)
Interest income 3,825 - 1,132 4,957
Miscellaneous income 3,648 16,191 509 20,348
Total non-operating revenues (expenses)380,869 16,191 (15,268) 381,792
Income (loss) before transfers (1,151,221) (69,936) 174,593 (1,046,564)
Transfers in 3,770,508 - 482,868 4,253,376
Transfers out (3,770,509) - (482,867) (4,253,376)
Change in net position (1,151,222) (69,936) 174,594 (1,046,564)
Net position, beginning of year 26,259,488 1,534,895 2,221,804 30,016,187
Net position, end of year 25,108,266$ 1,464,959$ 2,396,398$ 28,969,623$
Town of Taos
Statement of Revenues, Expenses and Changes in Net Position
Proprietary Funds
For the Year Ended June 30, 2014
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 3,080,119$ 1,309,032$ 1,014,665$ 5,403,816$
Cash payments to employees for services (711,865) (129,899) (257,757) (1,099,521)
Cash payments to suppliers for goods and services (2,002,240) (1,175,234) (333,139) (3,510,613)
Net cash provided by operating activities 366,014 3,899 423,769 793,682
Cash flows from noncapital financing activities
Gross receipts taxes 504,349 - - 504,349
Miscellaneous income 3,648 16,191 509 20,348
Payments for noncurrent accrued compensated absences 10,176 - 1,218 11,394
Interfund advances (payments) 14,090 5,382 3,423 22,895
Net cash provided by noncapital
financing activities 532,263 21,573 5,150 558,986
Cash flows from capital and related financing activities
Interest paid (132,756) - (17,761) (150,517)
Principal payments on long-term debt (209,465) - (176,386) (385,851)
Acquisition of capital assets (77,369) - (45,980) (123,349)
Net cash provided (used) provided by capital and
related financing activities (419,590) - (240,127) (659,717)
Cash flows from investing activities
Purchases of investments (1,728) - - (1,728)
Interest on investments 3,825 - 1,132 4,957
Net cash provided by investing activities 2,097 - 1,132 3,229
Net increase in cash and cash equivalents 480,784 25,472 189,924 696,180
Cash and cash equivalents - beginning of year 4,098,798 571,169 1,621,354 6,291,321
Cash and cash equivalents - end of year 4,579,582$ 596,641$ 1,811,278$ 6,987,501$
Reconciliation of operating income (loss) to
net cash provided by operating activities:
Operating income (loss) (1,532,090)$(86,127)$ 189,861$ (1,428,356)$
Adjustments to reconcile operating income (loss) to
net cash provided by operating activities:
Depreciation 1,621,713 56,571 180,382 1,858,666
Changes in assets and liabilities
Receivables 295,358 33,344 (52,100) 276,602
Accounts payable (44,458) 969 105,297 61,808
Accrued payroll expenses 6,254 1,091 329 7,674
Current accrued compensated absences 3,377 (1,949) - 1,428
Meter deposits 15,860 - - 15,860
Net cash provided by operating activities 366,014$ 3,899$ 423,769$ 793,682$
Statement of Cash Flows
For the Year Ended June 30, 2014
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 8,725$
Investments 60,000
Total assets 68,725$
Liabilities
Deposits payable 68,342$
Due to other entities 383
Total liabilities 68,725$
Statement of Fiduciary Assets and Liabilities - Agency Funds
Town of Taos
STATE OF NEW MEXICO
June 30, 2014
The accompanying notes are an integral part of these financial statements
35
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36
STATE OF NEW MEXICO
Town of Taos
Notes to the Financial Statements
June 30, 2014
NOTE 1. Summary of Significant Accounting Policies
The Town of Taos (Town) was incorporated in 1934. The Town operates under a Council-Mayor form of
government and provides the following services as authorized by its charter: public safety (police and fire),
highways and streets, public utilities (water, wastewater, and solid waste), health and social services, culture-
recreation, education, public improvements, planning and zoning, and general administrative services.
The Town of Taos is a body politic and corporate under the name and form of government selected by its
qualified electors. The Town may:
1. Sue or be sued;
2. Enter into contracts and leases;
3. Acquire and hold property, both real and personal;
4. Have common seal, which may be altered at pleasure;
5. Exercise such other privileges that are incident to corporations of like character or degree that are not
inconsistent with the laws of New Mexico;
6. Protect generally the property of its municipality and its inhabitants;
7. Preserve peace and order within the municipality; and
8. Establish rates for services provided by municipal utilities and revenue-producing projects, including
amounts which the governing body determines to be reasonable in the operation of similar facilities.
This summary of significant accounting policies of the Town is presented to assist in the understanding of
Town’s financial statements. The financial statements and notes are the representation of Town’s management
who is responsible for their integrity and objectivity. The financial statements of the Town have been prepared
in conformity with accounting principles generally accepted in the United States of America (GAAP) as applied
to government units.
During the year ended June 30, 2014, the Town adopted GASB Statement No. 65 (GASB 65), Items Previously
Reported as Assets and Liabilities. GASB Statement No. 65 established accounting and financial reporting
standards that reclassify, as deferred outflows of resources or deferred inflows of resources, certain items that
were previously reported as assets and liabilities and recognizes, as outflows of resources or inflows of
resources, certain items that were previously reported as assets and liabilities. The effect of GASB 65 is
reflected in the Statement of Activities as a restatement in the amount of $155,527 due to the accounting
treatment of the unamortized amount of bond issuance costs at July 1, 2013. The implementation of GASB 65
affected the Town by reclassifying unearned revenues- property taxes as a deferred inflow of resources instead
of a liability in the amount of $135,947 and unearned revenues- delinquent lodgers tax as a deferred inflow of
resources instead of a liability in the amount of $126,150.
A. Financial Reporting Entity
The financial reporting entity consists of (a) the primary government, (b) organizations for which the
primary government is financially accountable and (c) other organizations for which the nature and
significance of their relationship with the primary government are such that exclusion would cause the
reporting entity’s financial statements to be misleading or incomplete.
In evaluating how to define the Town, for financial reporting purposes, management has considered
all potential component units. The decision to include any potential component units in the financial
reporting entity was made by applying the criteria set forth in GASB Statement No. 14, as amended by
GASB Statement No. 39 and GASB Statement No. 61. Blended component units, although legally
separate entities, are in substance part of the government’s operations. Each discretely presented
component unit is reported in a separate column in the government-wide financial statements to
emphasize that it is legally separate from the government.
37
STATE OF NEW MEXICO
Town of Taos
Notes to the Financial Statements
June 30, 2014
NOTE 1. Summary of Significant Accounting Policies (continued)
A. Financial Reporting Entity (continued)
The basic-but not the only-criterion for including a potential component unit within the reporting
entity is the governing body’s ability to exercise oversight responsibility. The most significant
manifestation of this ability is financial interdependency. Other manifestations of the ability to
exercise oversight responsibility include, but are not limited to, the selection of governing authority,
the designation of management, the ability to significantly influence operations, and accountability for
fiscal matters. A second criterion used in evaluating potential component units is the scope of public
service. Application of this criterion involves considering whether the activity benefits the
government and/or its citizens.
A second criterion used in evaluating potential component units is the scope of public service.
Application of this criterion involves considering whether the activity benefits the government and/or
its citizens.
A third criterion used to evaluate potential component units for inclusion or exclusion from the
reporting entity is the existence of special financing relationships, regardless of whether the
government is able to exercise oversight responsibilities. Finally, the nature and significance of a
potential component unit to the primary government could warrant its inclusion within the reporting
entity.
Based upon the application of these criteria, the Town has no component units, and is not a component
unit of another governmental agency.
B. Government-wide and fund financial statements
The government-wide financial statements (i.e., the statement of net position and the statement of
activities) report information on all of the nonfiduciary activities of the primary government. For the
most part, the effect of interfund activity has been removed from these statements. Governmental
activities, which normally are supported by taxes and intergovernmental revenues, are reported
separately from business-type activities, which rely to a significant extent on fees and charges for
support.
The Statement of Net Position and the Statement of Activities were prepared using the economic
resources measurement focus and the accrual basis of accounting. Revenues, expenses, gains, losses,
assets and liabilities resulting from exchange-like transactions are recognized when the exchange
takes place. Revenues, expenses, gains, losses, assets and liabilities resulting from non-exchange
transactions are recognized in accordance with the requirements of GASB Statement No. 33,
Accounting and Financial Reporting for Non-exchange Transactions.
In the government-wide Statement of Net Position, both the governmental and business-type activities
columns (a) are presented on a consolidated basis by column, (b) and are reported on a full accrual,
economic resource basis, which recognizes all long-term assets and receivables as well as long-term
debt and obligations. The Town’s net position is reported in three parts – net investment in capital
assets; restricted net position; and unrestricted net position.
38
STATE OF NEW MEXICO
Town of Taos
Notes to the Financial Statements
June 30, 2014
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 program revenues. Direct expenses are those that are clearly identifiable with a
specific function or segment. Program revenues include 1) charges to customers or applicants who
purchase, use, or directly benefit from goods, services, or privileges provided by a given function or
segment and 2) grants and contributions that are restricted to meeting the operational or capital
requirements of a particular function or segment. Taxes and other items not properly included among
program revenues are reported instead as general revenues.
Separate financial statements are provided for governmental funds, proprietary funds and fiduciary
funds, even though the latter are excluded from the government-wide financial statements. Major
individual governmental funds and major individual enterprise funds are reported as separate columns
in the fund financial statements.
C. Measurement focus, basis of accounting, and financial statement presentation
The government-wide financial statements are reported using the economic resources measurement
focus and the accrual basis of accounting, as are the proprietary fund and fiduciary fund financial
statements. Revenues are recorded when earned and expenses are recorded when a liability is
incurred, regardless of the timing of related cash flows. Property taxes, net of estimated refunds, are
recognized as revenues in the year for which they are levied. Grants and similar items are recognized
as revenue as soon as all eligibility requirements imposed by the provider have been met.
Governmental fund financial statements are reported using the current financial resources
measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as
they are both measurable and available. Revenues are considered to be available when they are
collectible within the current period or soon enough thereafter to pay liabilities of the current period.
For this purpose, the government considers revenues to be available if they are collected within 60
days of the end of the current fiscal period. Expenditures generally are recorded when a liability is
incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures
related to compensated absences and claims and judgments, are recorded only when payment is due.
Property taxes, franchise taxes, licenses and interest associated with the current fiscal period are all
considered to be susceptible to accrual and so have been recognized as revenues of the current fiscal
period, subject to the availability criterion. Sales and use taxes are classified as derived tax revenues
and are recognized as revenue when the underlying exchange takes place and the revenues are
measurable and available. Grants and similar items are recognized as revenue as soon as all eligibility
requirements imposed by the provider have been met, subject to the availability criterion. Only the
portion of special assessments receivable due within the current fiscal period is considered to be
susceptible to accrual as revenue of the current period. All other revenue items are considered to be
measurable and available only when cash is received by the government.
The Town reports the following major governmental funds:
The General Fund is the government’s primary operating fund. It accounts for all financial
resources of the general government, except those required to be accounted for in another
fund. This fund includes state shared gross receipts tax income fund and state shared gas tax
income funds.
39
STATE OF NEW MEXICO
Town of Taos
Notes to the Financial Statements
June 30, 2014
NOTE 1. Summary of Significant Accounting Policies (continued)
C. Measurement focus, basis of accounting, and financial statement presentation (continued)
The Airport Construction Capital Projects Funds was created to receive proceeds from
federal and state grants for the purpose of financing improvements to the Taos Municipal
Airport. Authority is Town Council resolution.
The Town reports its proprietary funds as major funds. Proprietary funds include:
The Water and Sewer Fund is used to account for the activities of the Town’s water and
sewer operations.
The Solid Waste Fund accounts for the provision of solid waste services to the residents of
the Town and some residents of Taos 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. Exceptions to this general rule are payments-in-lieu of taxes and other charges
between the government’s enterprise funds and various other functions of the government.
Elimination of these charges would distort the direct costs and program revenues reported in the
Statement of Activities. The General Fund, Lodger’s Tax Fund, Water and Sewer Fund and the Taos
Regional Landfill fund are combined with funds that have identical activities for financial statement
reporting.
Program revenues included in the Statement of Activities are derived directly from the program itself
or from parties outside the Town’s taxpayers or citizenry, as a whole; program revenues reduce the
cost of the function to be financed from the Town’s general revenues. Program revenues are
categorized as (a) charges for services, which include revenues collected for fees and use of Town
facilities, etc., (b) program-specific operating grants, which includes revenues received from state and
federal sources such as small cities assistance to be used as specified within each program grant
agreement, and (c) program-specific capital grants and contributions, which include revenues from
state sources to be used for capital projects. Internally dedicated resources are reported as general
revenues rather than as program revenues. Likewise, general revenues include all taxes.
The Town reports all direct expenses by function in the Statement of Activities. Direct expenses are
those that are clearly identifiable with a function. The Town does not currently employ indirect cost
allocation systems. Depreciation expense is specifically identified by function and is included in the
direct expense of each function. Interest on general long-term debt is considered an indirect expense
and is reported separately on the Statement of Activities.
40
STATE OF NEW MEXICO
Town of Taos
Notes to the Financial Statements
June 30, 2014
NOTE 1. Summary of Significant Accounting Policies (continued)
C. Measurement focus, basis of accounting, and financial statement presentation (continued)
Proprietary funds distinguish operating revenues and expenses from non-operating items. Operating
revenues and expenses generally result from providing services in connection with the fund’s principal
ongoing operations. The principal operating revenue of the Town’s enterprise fund is charges for
services for the Town’s utilities. Operating expenses for enterprise funds include the cost of services,
administrative expenses and depreciation on capital assets. All revenues and expenses not meeting
this definition are reported as non-operating revenues and expenses.
When both restricted and unrestricted resources are available for use, it is the Town’s policy to use
restricted resources first, then unrestricted resources as they are needed.
D. Assets, Liabilities and Net Position or Equity
Deposits and Investments: The Town’s cash and cash equivalents are considered to be cash on hand,
demand deposits and short-term investments with original maturities of three months or less from the
date of acquisition.
State statutes authorize the Town to invest in Certificates of Deposit, obligations of the U.S.
Government, and the State Treasurer’s Investment Pool.
Investments for the Town are reported at fair value. The State Treasurer’s Pool operates in
accordance with appropriate state laws and regulations. The reported value of the pool is the same as
the fair value of the pool shares.
Receivables and Payables: Interfund activity is reported as loans, services provided, reimbursements
or transfers. Loans are reported as interfund receivables and payables as appropriate and are subject to
elimination upon consolidation. Services provided, deemed to be at market or near market rates, are
treated as revenues and expenditures/expenses. Reimbursements are when one fund incurs a cost,
charges the appropriate benefiting fund and reduces its related cost as a reimbursement. All other
interfund transactions are treated as transfers. Transfers between governmental or between proprietary
funds are netted as part of the reconciliation to the government-wide financial statements.
Advances between funds, as reported in the fund financial statements, are offset by a fund balance
reserve account in applicable governmental funds to indicate that they are not available for
appropriation and are not expendable available financial resources in the event they are not received
within 60 days of year end.
All receivables are reported at their gross value and, where appropriate, are reduced by the estimated
portion that is expected to be uncollectible. The Town estimates the allowance for uncollectible
accounts based off the days delinquent. The Town has estimated all accounts that are greater than 120
days to be uncollectible. In the government-wide and governmental fund financial statements,
delinquent property taxes are recorded when levied. Property taxes are considered to be 100%
collectible.
Property taxes are levied on November 1 based on the assessed value of property as listed on the
previous January 1 and are due in two payments by November 10th and April 10th. Property taxes
uncollected after November 10th and April 10th are considered delinquent and the Town may assess
penalties and interest. The taxes attach as an enforceable lien on property thirty (30) days thereafter,
at which time they become delinquent. Property taxes are collected by Taos County and remitted
monthly to the Town.
41
STATE OF NEW MEXICO
Town of Taos
Notes to the Financial Statements
June 30, 2014
NOTE 1. Summary of Significant Accounting Policies (continued)
D. Assets, Liabilities and Net Position or Equity (continued)
Restricted Assets: Restricted assets consist of those funds expendable for operating purposes but
restricted by donors or other outside agencies as to the specific purpose for which they may be used
and restricted for future debt service payments, capital projects, meter deposits payable, and the
Town’s landfill liability.
Capital Assets: Capital assets, which include property, plant, equipment, and infrastructure assets
(e.g., roads, bridges, sidewalks, and similar items), are reported in the applicable governmental or
business-type activities columns in the government-wide financial statements. Capital assets are
defined by the government as assets with an initial, individual cost of more than $5,000 (amount not
rounded) and an estimated useful life in excess of one year. Such assets are recorded at historical cost
or estimated historical cost if purchased or constructed. Pursuant to the implementation of GASB
Statement No. 34, the historical costs of infrastructure assets (retroactive to 1979) are included as part
of the governmental capital assets reported in the government wide statements. Information
Technology Equipment including software is being capitalized and included in machinery and
equipment in accordance with NMAC 2.20.1.9 C (5). Donated capital assets are recorded at estimated
fair market value at the date of donation.
The costs of normal maintenance and repairs that do not add to the value of the asset or materially
extend assets lives are not capitalized. Library books and periodicals are estimated to have a useful
life of less than one year or are under the capitalization threshold and are expensed when purchased.
Major outlays for capital assets and improvements are capitalized as projects are constructed. Interest
incurred during the construction phase of capital assets of business-type activities is included as part
of the capitalized value of the assets constructed. There was no interest expense capitalized by the
Town during the current fiscal. No interest was included as part of the cost of capital assets under
construction.
Property, plant, and equipment of the primary government are depreciated using the straight line
method over the following estimated useful lives:
Assets Years
Land improvements 20
Buildings and improvements 10-50
Machinery and equipment 5-25
Infrastructure 10-50
Deferred Inflow of Resources: In addition to liabilities, the balance sheet reports a separate section
for deferred inflows of resources. This separate financial statement element, deferred inflows of
resources, represents an acquisition of fund balance that applies to a future period(s) and so will not be
recognized as an inflow of resources (revenue) until that time. Revenue must be susceptible to accrual
(measurable and available to finance expenditures of the current fiscal period) to be recognized. If
assets are recognized in connection with a transaction, but those assets are not yet available to finance
expenditures of the current fiscal period, then the assets must be offset by a corresponding liability for
deferred inflows of resources. The Town has only two types of items which arise under the modified
accrual basis of accounting that qualifies for reporting in this category. Accordingly, the items,
unavailable revenue - property taxes and unavailable revenue- delinquent property taxes, are reported
only in the governmental funds balance sheet. These amounts are deferred and recognized as an
inflow of resources in the period that the amounts become available. The Town has recorded
$135,947 related to property taxes and $126,150 related to delinquent lodger’s taxes considered
“unavailable.”
42
STATE OF NEW MEXICO
Town of Taos
Notes to the Financial Statements
June 30, 2014
NOTE 1. Summary of Significant Accounting Policies (continued)
D. Assets, Liabilities and Net Position or Equity (continued)
Compensated Absences: The Town’s employees earn personal leave at a rate of 22 to 27 days per
year based on years of service. Employees can carry over unused personal leave each year with a cap
of 500 hours.
Vested or accumulated vacation leave that is expected to be liquidated with expendable available
financial resources is reported as an expenditure and a fund liability of the governmental or
proprietary fund that will pay it. In prior years, substantially all of the related expenditures have been
liquidated by the general fund. Amounts of vested or accumulated vacation leave that are not
expected to be liquidated with expendable available financial resources are reported in the
government-wide statement of net position.
Long-term Obligations: In the government-wide financial statements, and proprietary fund types in
the fund financial statements, long-term debt and other long-term obligations are reported as liabilities
in the applicable governmental activities, business-type activities, or proprietary fund type statement
of net position. Bond premiums and discounts, are deferred and amortized over the life of the bonds
using the effective interest method or the straight-line method if the difference is minimal. Bonds
payable are reported net of the applicable bond premium or discount. For fund financial reporting,
bond premiums and discounts, as well as issuance costs, are recognized in the period the bonds are
issued. Bond proceeds are reported as another financing source net of the applicable premium or
discount. Issuance costs, even if withheld from the actual net proceeds received, are reported as debt
service expenditures.
Fund Balance Classification Policies and Procedures: For committed fund balance, the Town's
highest level of decision-making authority is the Town Council. The formal action that is required to
be taken to establish a fund balance commitment is the Town Council.
For assigned fund balance, the Town Council or an official or body to which the Town Council
delegates the authority is authorized to assign amounts to a specific purpose. The authorization policy
is in governmental funds other than the general fund, assigned fund balance represents the amount that
is not restricted or committed. This indicates that resources in other governmental funds are, at a
minimum, intended to be used for the purpose of that fund.
For the classification of fund balances, the Town considers restricted or unrestricted amounts to have
been spent when an expenditure is incurred for the purposes for which both restricted and unrestricted
fund balance is available. Also for the classification of fund balances, the Town considers committed,
assigned, or unassigned amounts to have been spent when an expenditure is incurred for purposes for
which amounts in any of those unrestricted fund balance classifications could be used.
Nonspendable Fund Balance: At June 30, 2014, the Town did not have any fund balances in
nonspendable form.
Restricted and Committed Fund Balance: At June 30, 2014, the Town has presented restricted
fund balance on the governmental funds balance sheet in the amount of $545,504 for various general
government operations as restricted by enabling legislation, $127,512 for public safety, $363,344 for
culture and recreation, $280,671 for fire protection, $93,502 for health and welfare, $355,901 for debt
service expenditures, and $2,859,460 for capital projects. The Town has committed fund balance of
the general fund for subsequent year’s expenditures in the amount of $2,480,356. The details of these
fund balance items are located on the governmental funds balance sheet as detailed on page 26.
43
STATE OF NEW MEXICO
Town of Taos
Notes to the Financial Statements
June 30, 2014
NOTE 1. Summary of Significant Accounting Policies (continued)
D. Assets, Liabilities and Net Position or Equity (continued)
Minimum Fund Balance Policy: The Town’s policy for maintaining a minimum amount of fund
balance for operations is to minimize any sudden and unplanned discontinuity to programs and
operations and for unforeseen contingencies. At a minimum, the budget shall ensure that the Town
holds cash reserves of 1/12th the General Fund expenditures. The amount at June 30, 2014 for the
Town is $823,713
Net Position: Equity is classified as net position and displayed in three components:
a. Net investment in capital assets: Consists of capital assets, net of accumulated depreciation
and reduced by the outstanding balances of any bonds, mortgages, notes, or other borrowings
that are attributable to the acquisition, construction, or improvement of those assets.
b. Restricted net position: Consist of net position with constraints placed on the use either by
(1) external groups such as creditors, grantors, contributors, or laws or regulation of other
governments; or (2) law through constitutional provisions or enabling legislation.
Descriptions for the related restrictions for net position restricted for “special revenue, debt
service and capital projects” are described on pages 40 and 64-67.
c. Unrestricted net position: Net position that does not meet the definition of “restricted” or
“Net Investment in Capital Assets.”
Interfund Transactions: Quasi-external transactions are accounted for as revenues, expenditures or
expenses. Transactions that constitute reimbursements to a fund from expenditures/expenses initially
made from it that are properly applicable to another fund, are recorded as expenditures/expenses in the
reimbursing fund and as reductions of expenditures/expenses in the fund that is reimbursed.
All other interfund transactions, except quasi-external transactions and reimbursements, are reported
as transfers. Nonrecurring or non-routine permanent transfers of equity are reported as residual equity
transfers. All other interfund transfers are reported as operating transfers.
Estimates: The preparation of financial statements in conformity with accounting principles
generally accepted in the United States of America requires management to make estimates and
assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could
differ from those estimates. Significant estimates in the Town’s financial statements include the
allowance for uncollectible accounts in the joint utility fund, depreciation on capital assets and the
estimate for landfill closure and postclosure costs.
NOTE 2. Stewardship, Compliance and Accountability
Budgetary Information
Annual budgets of the Town are prepared prior to June 1 and must be approved by resolution of the Town
Councilors, and submitted to the Department of Finance and Administration for State approval. Once the
budget has been formally approved, any amendments must also be approved by the Town Council Members
and the Department of Finance and Administration. A separate budget is prepared for each fund. Line items
within each budget may be over-expended; however, it is not legally permissible to over-expend any budget in
total by fund.
Governmental fund budgets are prepared on the GAAP basis, excluding encumbrances, and secure
appropriation of funds for only one year. Carryover funds must be re-appropriated in the budget of the
subsequent fiscal year.
44
STATE OF NEW MEXICO
Town of Taos
Notes to the Financial Statements
June 30, 2014
NOTE 2. Stewardship, Compliance and Accountability (continued)
Budgetary Information (continued)
Proprietary fund budgets are prepared on the GAAP basis, excluding encumbrances, and secure appropriation
of funds for only one year. Carryover funds must be re-appropriated in the budget of the subsequent fiscal year.
The Town does not budget for depreciation expense, only capital outlay.
The budgetary information presented in these financial statements has been properly amended by Town Council
in accordance with the above procedures. These amendments resulted in the following changes:
Excess (deficiency)
of revenues over expenditures
Original Final
Budget Budget
Budgeted Funds:
General Fund $ 69,806 $ 304,351
Airport Construction $ (468,625) $ (607,260)
Nonmajor Governmental Funds $ (2,997,717) $ (3,314,095)
Change in net position
Budgeted Funds:
Water and Sewer $ (2,946,786) $ (3,147,636)
Solid Waste $ (27,930) $ (101,027)
Taos Regional Landfill $ 30,384 $ 71,403
The accompanying Statements of Revenues, Expenditures and Changes in Fund Balance – Budget (GAAP
Basis) and Actual and Statements of Revenues, Expenses and Changes in Net Position- Budget (GAAP Basis)
and Actual present comparisons of the legally adopted budget with actual data on a budgetary basis.
NOTE 3. Deposits and Investments
State statutes authorize the investment of Town funds in a wide variety of instruments including certificates of
deposit and other similar obligations, state investment pool, money market accounts, and United States
Government obligations. The Town is not aware of any invested funds that did not meet the State investment
requirements as of June 30, 2014.
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.
45
STATE OF NEW MEXICO
Town of Taos
Notes to the Financial Statements
June 30, 2014
NOTE 3. Deposits and Investments (continued)
Custodial Credit Risk – Deposits Custodial credit risk is the risk that in the event of a bank failure, the Town’s
deposits may not be returned to it. The Town does not have a deposit policy for custodial credit risk, other than
following state statutes as set forth in the Public Money Act (Section 6-10-1 to 6-10-63, NMSA 1978). At June
30, 2014, $8,310,029 of the Town’s deposits of $9,060,029 was exposed to custodial credit risk. $6,319,426
was uninsured and collateralized by collateral held by the pledging bank’s trust department, not in the Town’s
name, and $1,990,603 was uninsured and uncollateralized.
Amount of deposits 5,076,853$ 3,983,176$ 9,060,029$
FDIC Coverage (500,000) (250,000) (750,000)
Total uninsured public funds 4,576,853 3,733,176 8,310,029
4,406,353 1,913,073 6,319,426
Uninsured and uncollateralized 170,500$ 1,820,103$ 1,990,603$
Collateral requirement
(50% of uninsured funds)2,288,427$ 1,866,588$ 4,155,015$
Pledged Collateral 5,064,198 1,913,073 6,977,271
Over (Under) collateralized 2,775,771$ 46,485$ 2,822,256$
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 5,847,444$
Restricted cash and cash equivalents per Exhibit A-1 4,002,007
Restricted investments per Exhibit A-1 1,195,042
Agency funds cash per Exhibit E-1 8,725
Certificates of deposits (maturity > 3 months) 170,500
Plus outstanding checks 1,509,765
Less deposits in transit (345,587)
Less U.S. Treasury Money Market Mutual Funds (3,322,046)
Less New Mexico State Treasurer Debt Service (4,171)
Less petty cash (1,650)
Bank balance of deposits 9,060,029$
46
STATE OF NEW MEXICO
Town of Taos
Notes to the Financial Statements
June 30, 2014
NOTE 3. Deposits and Investments (continued)
Investments
The Town invests excess cash in the State Treasurer Local Government Investment Pool. The New Mexico
Local Government Investment Pool’s (LGIP) investments are valued at fair value based on quoted market
prices as of the valuation date. The LGIP is not SEC registered. The New Mexico State Treasurer is authorized
to invest the short-term investment funds, with the advice and consent of the State Board of Finance, in
accordance with Sections 6-10-10(I) through 6-10-10(P) and Sections 6-10-10.1(A) and (E), NMSA 1978. The
pool does not have unit shares. Per Section 6-10-10. (F), NMSA 1978, at the end of each month all interest
earned is distributed by the State Treasurer to the contributing entities in amounts directly proportionate to the
respective amounts deposited in the fund and the length of time the fund amounts were invested. Participation
in the LGIP is voluntary.
As of June 30, 2014, the Town’s investment in the New Mexico LGIP 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 managed by NMFA, on deposit with the State Treasurer’s office, in NMFA’s name for
the benefit of the Town.
The Town’s investments at June 30, 2014 include the following:
Investments Rated
New Mexico Local Government Investment Pool AAAm 48.6 4,057,679$
Reserve Contingency Fund Unrated Does not earn interest 5,392
U.S. Treasury Money Market Mutual Funds Aaa **>365 Days 3,322,046
New Mexico State Treasurer Debt Service Aaa ** >365 Days 4,172
$ 7,389,289
Weighted Average
Maturity Fair Value
** Based Moody’s rating
At June 30, 2014 the Town had $170,500 of certificates of deposit classified as governmental activities
investments at Exhibit A-1. In addition the Town has funds which are managed by NMFA which are
considered restricted cash and cash equivalents and restricted investments. Of the $3,322,046 noted above
$1,195,042 is considered restricted investments as these are invested by NMFA in US Treasury notes and
$2,127,004 is considered a cash and cash equivalent per Exhibit A-1. For purposes of cash flows at Exhibit D-3
ending cash is considered to be cash and cash equivalents, restricted cash and cash equivalents, and restricted
investments.
Interest Rate Risk – Investments. The Town does not have a formal policy limiting investment maturities that
would help manage its exposure to fair value losses from increasing interest rates.
Concentration of Credit Risk – Investments. For an investment, concentration of credit risk is when any one
issuer is 5% or more of the investment portfolio of the Town. The investments in the New Mexico LGIP and
U.S Treasury Money Market Mutual Funds represent 55% and 45%, respectively, of the investment portfolio.
Since the Town only purchases investments with the highest credit rating, the additional concentration is not
viewed to be an additional risk by the Town. The Town’s policy related to concentration of credit risk is to
comply with the state statute as put forth in the Public Money Act (Section 6-10-1 to 6-10-63, NMSA 1978).
47
STATE OF NEW MEXICO
Town of Taos
Notes to the Financial Statements
June 30, 2014
NOTE 4. Receivables
Receivables as of June 30, 2014, are as follows:
Governmental Activities:Other
Airport Governmental
General Construction Funds Total
Property taxes receivable 180,791$ -$ -$ 180,791$
Other taxes receivable:
Gross receipts 1,308,131 - 250,208 1,558,339
Gasoline and motor vehicle - - 34,975 34,975
Franchise taxes 128,557 - - 128,557
Lodger's taxes - - 192,611 192,611
Due from other governments:
Intergovernmental:
Federal grants - 228,395 - 228,395
State grants 15,129 73,912 331,390 420,431
Total receivables 1,632,608$302,307$ 809,184$ 2,744,099$
Receivables for governmental activities are considered to be 100% collectible.
Governmental funds report unavailable revenue in connection with receivables for revenues that are not
considered to be available to liquidate liabilities in the current period. Governmental funds also defer revenue
recognition in connection with resources that have been received but not yet earned. Unavailable revenue
related to property taxes receivable for the Town for the year ended June 30, 2014 was $135,947. 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 $126,150.
Business-type Activities: Water and Solid Taos Regional
Sewer Waste Landfill Total
Customer receivables 817,933$ 168,815$ 127,122$ 1,113,870$
Other receivables:
Gross receipts taxes 35,838 - - 35,838
Total gross receivables 853,771 168,815 127,122 1,149,708
Less: allowance for
doubtful accounts 463,558 45,082 20,136 528,776
Total net receivables 390,213$ 123,733$ 106,986$ 620,932$
48
STATE OF NEW MEXICO
Town of Taos
Notes to the Financial Statements
June 30, 2014
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 4,604,409$
General Fund Historical District 10,000
Recreation Fund Community Grants 4,808
Civic Center Lodger's Tax 52,041
Lodger's Tax Lodger's Tax 699,439
Public Transportation Lodger's Tax 185,370
Public Transportation Capital Projects 23,100
Community Grants General Fund 263,000
2009 NMFA PPRF Disadvantage
Program-Eco Park 1/4 Cent Municipal Gross Receipts Tax 180,756
2008 Gross Receipts Tax Revenue
Bond 1/4 Cent Municipal Gross Receipts Tax 495,825
2007 NMFA Land Purchase 1/4 Cent Municipal Gross Receipts Tax 113,742
Facilities Improvement 1/4 Cent Municipal Gross Receipts Tax 79,800
Capital Projects 1/4 Cent Municipal Gross Receipts Tax 46,468
Airport Construction 1/4 Cent Municipal Gross Receipts Tax 2,431
Historic District General Fund 10,000
Communications Capital Projects 111,407
Confidential Informant General Fund 10,000
2011 PPRF Street Improvement General Fund 70,972
Camino Rael Building 1/4 Cent Municipal Gross Receipts Tax 18,000
Facilities Improvement General Fund 29,000
Facilities Improvement Capital Projects 49,000
Airport Construction General Fund 21,305
Airport Construction Capital Projects 516,486
1999 Gasoline Tax Acquisition General Fund 113,125
1999 Gasoline Tax Acquisition Municipal Road Gasoline Tax 115,851
7,826,335$
49
STATE OF NEW MEXICO
Town of Taos
Notes to the Financial Statements
June 30, 2014
NOTE 5. Transfers and Interfund Receivables (continued)
Business-Type Activities:
Transfers In Transfers Out Amount
Water and Sewer Water and Sewer 3,770,508$
Taos Regional Landfill Taos Regional Landfill 482,868
4,253,376$
Internal balances have primarily been recorded when funds overdraw their share of pooled cash. The
composition of interfund balances as of June 30, 2014 is as follows:
Due from Other Funds Due to Other Funds Amount
General Fund Water and Sewer 14,961$
General Fund Solid Waste 5,379
General Fund Taos Regional Landfill 5,046
25,386$
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, 2014 follows. Land and
construction in progress are not subject to depreciation.
Balance Balance
Governmental activities:June 30, 2013 Additions Deletions June 30, 2014
Capital assets, not depreciated:
Land 6,277,809$ -$ -$ 6,277,809$
Construction in progress 1,164,072 2,454,196 205,166 3,413,102
Total capital assets, not depreciated 7,441,881 2,454,196 205,166 9,690,911
Capital assets, depreciated:
Land improvements 7,377,460 84,485 - 7,461,945
Buildings and improvements 33,838,446 613,809 37,999 34,414,256
Machinery and equipment 16,477,088 395,244 292,263 16,580,069
Infrastructure 50,723,971 539,309 - 51,263,280
Total capital assets, depreciated 108,416,965 1,632,847 330,262 109,719,550
Less accumulated depreciation:
Land improvements (4,030,593) (279,580) - (4,310,173)
Buildings and improvements (14,588,848) (1,150,235) (20,140) (15,718,943)
Machinery and equipment (13,019,299) (752,092) (292,127) (13,479,264)
Infrastructure (34,240,915) (1,687,199) - (35,928,114)
Total accumulated depreciation (65,879,655) (3,869,106) (312,267) (69,436,494)
Net book value 49,979,191$ 217,937$ 223,161$ 49,973,967$
50
STATE OF NEW MEXICO
Town of Taos
Notes to the Financial Statements
June 30, 2014
NOTE 6. Capital Assets (continued)
Depreciation expense for the year ended June 30, 2014 was charged to governmental activities as follows:
General government 1,718,449$
Public safety 101,326
Public works 1,996,857
Culture and recreation 2,054
Health and welfare 50,420
3,869,106$
Balance Balance
Business-type activities:June 30, 2013 Additions Deletions June 30, 2014
Capital assets, not depreciated:
Land 262,422$ -$ -$ 262,422$
Construction in progress 709,901 123,349 - 833,250
Total capital assets, not depreciated 972,323 123,349 - 1,095,672
Capital assets, depreciated:
Land improvements 104,895 - - 104,895
Buildings and improvements 4,656,981 - - 4,656,981
Machinery and equipment 8,911,845 - 33,537 8,878,308
Infrastructure 32,264,584 - - 32,264,584
Total capital assets, depreciated 45,938,305 - 33,537 45,904,768
Less accumulated depreciation:
Land improvements (88,322) (2,495) - (90,817)
Buildings and improvements (2,279,713) (154,631) - (2,434,344)
Machinery and equipment (6,678,515) (341,097) (33,537) (6,986,075)
Infrastructure (9,067,231) (1,360,443) - (10,427,674)
Total accumulated depreciation (18,113,781) (1,858,666) (33,537) (19,938,910)
Net book value 28,796,847$ (1,735,317)$ -$ 27,061,530$
Depreciation expense for the year ended June 30, 2014 was charged to business-type activities as follows:
Enterprise activities:
Water and sewer 1,621,713$
Solid waste 56,571
Landfill 180,382
1,858,666$
51
STATE OF NEW MEXICO
Town of Taos
Notes to the Financial Statements
June 30, 2014
NOTE 7. Long-term Debt
Governmental Activities:
During the year ended June 30, 2014, the following changes occurred in the liabilities reported in the
government-wide statement of net position:
Balance Balance Due Within
June 30, 2013 Additions Retirements June 30, 2014 One Year
Revenue Bonds 5,245,000$ -$ 280,000$ 4,965,000$ 290,000$
NMFA Loans 3,619,481 - 372,604 3,246,877 380,341
USDA Contract Payable 18,000 - 18,000 - -
Compensated Absences 594,635 312,512 363,120 544,027 363,120
Total Long-Term Debt 9,477,116$ 312,512$ 1,033,724$ 8,755,904$ 1,033,461$
Revenue Bonds
At June 30, 2014, the Town had one revenue bond outstanding. For the Series 2008 Gross Receipts Tax
Revenue Bonds, the Town pledged revenues from the State-Shared Gross Receipts Tax revenues. The revenue
bonds are as follows:
Original
Date of Due Interest Amount
Description Issue Date Rate of Issue
Series 2008 Gross Receipts Tax 01/30/08 06/01/26 4.00-5.00% 6,395,000$
The annual requirements to amortize the revenue bonds as of June 30, 2014, including interest payments, are as
follows:
Fiscal Year Total Debt
Ending June 30, Principal Interest Service
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 400,000 151,375 551,375
2020-2024 2,245,000 501,620 2,746,620
2025-2026 1,030,000 65,310 1,095,310
4,965,000$ 1,652,555$ 6,617,555$
52
STATE OF NEW MEXICO
Town of Taos
Notes to the Financial Statements
June 30, 2014
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 June 30, 2014, including interest payments, are as
follows:
Fiscal Year Total Debt
Ending June 30, Principal Interest Service
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 304,455 51,723 356,178
2020-2024 1,303,248 140,409 1,443,657
2025 174,350 6,406 180,756
3,246,877$ 478,338$ 3,725,215$
USDA Contract Payable
At June 30, 2014, the Town had the following USDA contract payable. This was paid off in its entirety in the
current fiscal year:
Date of Due Interest Amount
Description Issue Date Rate of Issue
USDA Contract Payable 02/01/95 06/30/14 0.00% 360,000$
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, 2014, compensated absences decreased
$50,608 from the prior year accrual. Compensated absences are liquidated by the respective funds in which
they are accrued.
53
STATE OF NEW MEXICO
Town of Taos
Notes to the Financial Statements
June 30, 2014
NOTE 7. Long-term Debt (continued)
Proprietary Funds:
The proprietary funds have incurred various forms of debt which were used for the purposes of constructing,
expanding, repairing and making improvements to its property, plant and equipment. The following schedule
shows the changes to its various forms of debt during the fiscal year ended June 30, 2014:
Balance Balance Due Within
June 30, 2013 Additions Retirements June 30, 2014 One Year
Revenue Bonds 2,009,600$ -$ 49,000$ 1,960,600$ 52,000$
NMFA and RUS Loans 3,255,829 - 336,851 2,918,978 271,330
Landfill Closure Liability 1,677,021 - - 1,677,021 -
Compensated Absences 55,505 38,052 25,230 68,327 25,230
Total Long-Term Debt 6,997,955$ 38,052$ 411,081$ 6,624,926$ 348,560$
Revenue Bonds
At June 30, 2014, the Town had the following revenue bonds outstanding:
Date of Due Interest Amount
Description Issue Date Rate of Issue
Series 1993A Water & Sewer 03/16/93 03/16/33 5.63% 635,600$
Series 1993B Water & Sewer 03/16/93 03/16/33 5.50% 123,000
Series 1995A Water & Sewer 12/05/95 12/05/35 5.125% 1,315,000
Series 1998A Water & Sewer 07/01/99 01/01/38 4.75% 475,000
The annual requirements to amortize the revenue bonds as of June 30, 2014, including interest payments, are as
follows:
Fiscal Year Total Debt
Ending June 30, Principal Interest Service
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 63,000 90,312 153,312
2020-2024 369,000 398,308 767,308
2025-2029 477,000 290,788 767,788
2030-2034 577,600 150,979 728,579
2035-2038 251,000 - 251,000
1,960,600$ 1,321,604$ 3,282,204$
54
STATE OF NEW MEXICO
Town of Taos
Notes to the Financial Statements
June 30, 2014
NOTE 7. Long-term Debt (continued)
NMFA and USDA Loans
The Town entered into loan agreements with the New Mexico Finance Authority and USDA. These loans are
not subject to intercept agreements. The loans are as follows:
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
The annual requirement to amortize the loans as of June 30, 2014, including interest payments, is as follows:
Fiscal Year Total Debt
Ending June 30, Principal Interest Service
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 174,400 16,795 191,195
2020-2024 638,960 51,817 690,777
2025-2029 571,287 39,478 610,765
2030-2034 324,282 29,602 353,884
2035-2039 56,000 17,150 73,150
2040-2041 34,000 2,750 36,750
2,918,978$ 284,400$ 3,203,378$
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, 2014, compensated absences increased $12,822
from the prior year accrual. Compensated absences are liquidated by the respective funds in which they are
accrued.
55
STATE OF NEW MEXICO
Town of Taos
Notes to the Financial Statements
June 30, 2014
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. The 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. However, should a claim be filed against the Town which exceeds the insurance coverage, the
Town would be responsible for a loss in excess of the coverage amounts. As claims are filed, the New Mexico
Self-Insurers’ Fund assesses and estimates the potential for loss and handles all aspects of the claim. Insurance
coverage has not changed significantly from prior years and coverage’s are expected to be continued.
At June 30, 2014, no unpaid claims have been filed which exceed the policy limits and to the best of
management’s knowledge and belief all known and unknown claims will be covered by insurance. The Town
is not aware of any major lawsuits that have been filed.
New Mexico Self-Insurers’ Fund has not provided information on an entity by entity basis that would allow for
a reconciliation of changes in the aggregate liabilities for claims for the current fiscal year and the prior fiscal
year.
NOTE 9. Other Required Individual Fund Disclosures
Generally accepted accounting principles require disclosures of certain information concerning individual funds
including:
A. Deficit fund balance of individual funds. The following fund had a deficit fund balance as of June 30,
2014.
Civic Center Special Revenue Fund $(2,423)
B. Actual expenditures in excess of amount budgeted at the budgetary authority level. Budgetary legal level
of control is at the fund level. There were no funds that exceeded approved budgetary authority for the
year ended June 30, 2014.
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.) The Public Employees Retirement Association (PERA) is the administrator of the plan, which is a cost-
sharing, multiple-employer defined benefit retirement plan. The plan provides for retirement benefits, disability
benefits, survivor benefits, and cost-of-living adjustments to plan members and beneficiaries. PERA issues a
separate, publicly available financial report that includes financial statements and required supplementary
information for the plan. That report may be obtained 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:
10.65% for law enforcement, fire protection and municipal employees. The 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. The contribution requirements of plan members
and the Town are established in State statute under Chapter 10, Article 11, NMSA 1978. The requirements
may be amended by acts of the legislature. The Town’s contributions to PERA for the years ending June 30,
2014, 2013 and 2012 were $930,337, $956,567, and $921,212, respectively, which equal the amount of the
required contributions for each fiscal year.
56
STATE OF NEW MEXICO
Town of Taos
Notes to the Financial Statements
June 30, 2014
NOTE 11. Post-Employment Benefits – State Retiree Health Care Plan
Plan Description. Town of Taos contributes to the New Mexico Retiree Health Care Fund, a cost-sharing
multiple-employer defined benefit postemployment healthcare plan administered by the New Mexico Retiree
Health Care Authority (RHCA). The RHCA provides health care insurance and prescription drug benefits to
retired employees of participating New Mexico government agencies, their spouses, dependents, and surviving
spouses and dependents. The RHCA Board was established by the Retiree Health Care Act (Chapter 10,
Article 7C, NMSA 1978). The Board is responsible for establishing and amending benefit provisions of the
healthcare plan and is also authorized to designate optional and/or voluntary benefits like dental, vision,
supplemental life insurance, and long-term care policies.
Eligible retirees are: 1) retirees who make contributions to the fund for at least five years prior to retirement and
whose eligible employer during that period of time made contributions as a participant in the RHCA plan on the
person’s behalf unless that person retires before the employer’s RHCA effective date, in which event the time
period required for employee and employer contributions shall become the period of time between the
employer’s effective date and the date of retirement; 2) retirees defined by the Act who retired prior to July 1,
1990; 3) former legislators who served at least two years; and 4) former governing authority members who
served at least four years.
The RHCA issues a publicly available stand-alone financial report that includes financial statements and
required supplementary information for the postemployment healthcare plan. That report and further
information can be obtained by writing to the Retiree Health Care Authority at 4308 Carlisle NE, Suite 104,
Albuquerque, NM 87107.
Funding Policy. The Retiree Health Care Act (Section 10-7C-13 NMSA 1978) authorizes the RHCA Board to
establish the monthly premium contributions that retirees are required to pay for healthcare benefits. Each
participating retiree pays a monthly premium according to a service based subsidy rate schedule for the medical
plus basic life plan plus an additional participation fee of five dollars if the eligible participant retired prior to
the employer’s RHCA effective date or is a former legislator or former governing authority member. Former
legislators and governing authority members are required to pay 100% of the insurance premium to cover their
claims and the administrative expenses of the plan. The monthly premium rate schedule can be obtained from
the RHCA or viewed on their website at www.nmrhca.state.nm.us.
The 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. Employers 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, 2014, 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,
2014, 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, 2014, 2013 and 2012 were $118,969,
$123,302, and $109,884, respectively, which equal the required contributions for each year.
57
STATE OF NEW MEXICO
Town of Taos
Notes to the Financial Statements
June 30, 2014
NOTE 12. Contingent Liabilities
The Town is party to various claims and lawsuits arising in the normal course of business. The Town is insured
through the New Mexico Self Insurers Fund. The maximum exposure of the Town is not estimable as of June
30, 2014.
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 grantor agencies,
the purpose of which is to ensure compliance with conditions precedent to the granting of funds. Any liability
for reimbursement which may arise as a result of these audits is not believed to be material.
NOTE 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. In
addition to operating expenses related to current activities of the landfill site, an expense provision and related
liability are being recognized based on the future closure and post closure care costs that will be incurred near
or after the date the landfill no longer accepts waste. The recognition of these landfill closure and post-closure
care costs is based on the amount of the landfill used during the year. The estimated liability for landfill closure
and post closure care costs is $1,677,021 as of June 30, 2014, which is based on 33 percent usage (filled) of the
landfill. The estimate has remained unchanged from the prior year as no significant construction occurred or
changes to the site conditions. The estimated total current cost of the landfill closure and post closure care is
based on the amount that would be paid if all equipment, facilities, and services required to close, monitor, and
maintain the landfill were acquired as of June 30, 2014. However, the actual cost of closure and post closure
care may be higher due to inflation, changes in technology, or changes in landfill laws and regulations.
In addition, the Town is required by State and Federal laws and regulations to make annual contributions to
finance closure and postclosure care. The Town is in compliance with these requirements, and at June 30, 2014
cash of $911,041 and investments of $74,500 is part of the pooled funds held by the Town and is presented as
restricted cash on the statement of net position.
NOTE 15. Construction and Other Significant Commitments
The Town has committed to pay for several construction contracts that were not completed at June 30, 2014 in
the amount of $879,106 as follows:
Project Description Contractor
Town Hall Drive Improvements 145,037$ August 2014 Silva's Excavation Inc.
Airport Terminal Roof Replacement 6,892 August 2014 Paul's Building & Construction
Airport Runway Design Phase 1, 2 & 3 577,045 May 2015 Armstrong Consultants Inc.
Landfill Reporting/Permitting Services 48,293 February 2015 Souder, Miller & Associates
Replacement of HVAC at Taos Library 34,870 September 2014 B & D Industries Inc.
La Posta Sewer Design 20,377 December 2014 Engineers Inc.
Camino de Merced Engineering 22,300 December 2014 Souder, Miller & Associates
Air Filtration Electrical Design 10,278 December 2014 Engineers Inc.
Hydrological Services 14,014 January 2015 Daniel B. Stephens & Associates
879,106$
Contract
Amount
Remaining
Estimated Date
of Completion
58
STATE OF NEW MEXICO
Town of Taos
Notes to the Financial Statements
June 30, 2014
NOTE 16. Subsequent Events
The date to which events occurring after June 30, 2014, the date of the most recent statement of net position,
have been evaluated for possible adjustment to the financial statements or disclosures is November 24, 2014,
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. Because of this 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 $4,688,232 of restricted net position for governmental
activities, all of which is restricted by enabling legislation. See pages 40 and 64-67 for descriptions of the
related restrictions for special revenue, debt service and capital projects funds. In addition the government-
wide statement of net position reports $3,729,400 of restricted net position for business-type activities. See
page 40 for descriptions of the related restrictions for meter deposits, debt service and landfill obligations.
NOTE 19. Utility Revenues Pledged
The Town of Taos has pledged future revenues from the water and sewer system, net of operation and
maintenance expenses, to repay $635,600 in Series 1993A Water & Sewer Revenue Bonds, issued in 1993.
The bonds are payable solely from utility customer net revenues and are payable through March 2033. The
pledged revenues shall be in an amount sufficient to pay principal, premium, if any, interest and other amounts
due under the bond agreement, including an amount sufficient to cure any deficiencies in the debt service
account or the bond agreement reserve account, to the USDA or the Trustee, as its assignee, to be deposited in
the debt service reserve account or the bond agreement reserve account held by the trustee, payable from and
constituting a lien upon the pledged revenues. The total principal and interest remaining to be paid on the
bonds is $466,600 and $305,348, respectively. Principal and interest paid for the current year and total
customer net revenues were $41,034 and $2,680,219, 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 $93,000 and $62,535, respectively. Principal and interest paid for the current year and total customer
net revenues were $7,225 and $2,680,219, respectively.
The Town of Taos has pledged future revenues from the water and sewer system, net of operation and
maintenance expenses, to repay $1,315,000 in Series 1995A Water & Sewer Revenue Bonds, issued in 1995.
The bonds are payable solely from utility customer net revenues and are payable through December 2035. The
pledged revenues shall be in an amount sufficient to pay principal, premium, if any, interest and other amounts
due under the bond agreement, including an amount sufficient to cure any deficiencies in the debt service
account or the bond agreement reserve account, to the USDA or the Trustee, as its assignee, to be deposited in
the debt service reserve account or the bond agreement reserve account held by the trustee, payable from and
constituting a lien upon the pledged revenues. The total principal and interest remaining to be paid on the
bonds is $1,015,000 and $689,368, respectively. Principal and interest paid for the current year and total
customer net revenues were $78,300 and $2,680,219, respectively.
59
STATE OF NEW MEXICO
Town of Taos
Notes to the Financial Statements
June 30, 2014
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 $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 $386,000 and $264,353, respectively. Principal and interest paid for the current year and total
customer net revenues were $26,715 and $2,680,219 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. The total principal and interest remaining to be paid on the loan
is $215,000 and $185,550, respectively. Principal and interest paid for the current year and total customer net
revenues were $14,950 and $2,680,219, respectively.
The Town of Taos has pledged future revenues from the water and sewer system, net of operation and
maintenance expenses, to repay $950,391 in NMFA Series 2001A Water & Sewer Loan, issued in 2001. The
loans are payable solely from utility customer net revenues and are payable through May 2021. The pledged
revenues shall be in an amount sufficient to pay principal, premium, if any, interest and other amounts due
under the loan agreement, including an amount sufficient to cure any deficiencies in the debt service account or
the loan agreement reserve account, to the NMFA or the Trustee, as its assignee, to be deposited in the debt
service reserve account or the loan agreement reserve account held by the trustee, payable from and constituting
a lien upon the pledged revenues. The total principal and interest remaining to be paid on the loan is $363,881
and $61,431, respectively. Principal and interest paid for the current year and total customer net revenues were
$68,443 and $2,680,219, 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. The
loans are payable solely from the Municipal Environmental Services GRT revenue and are payable through
May 2014. The pledged revenues shall be in an amount sufficient to pay principal, premium, if any, interest
and other amounts due under the loan 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 loan was paid in full as of June 30, 2014.
Principal and interest paid for the current year and total customer net revenues were $81,886 and $1,066,765,
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. The 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. The total principal and interest remaining to be paid on the loan is $453,804
and $32,687, respectively. Principal and interest paid for the current year and total customer net revenues were
$112,262 and $1,066,765, respectively.
60
STATE OF NEW MEXICO
Town of Taos
Notes to the Financial Statements
June 30, 2014
NOTE 19. Utility Revenues Pledged (continued)
The Town of Taos has pledged future revenues from the Taos Wastewater project, net of operation and
maintenance expenses, to repay $130,000 in NMFA/WTB Water Project, issued in 2009. The loans are payable
solely from utility customer net revenues and are payable through June 2029. The pledged revenues shall be in
an amount sufficient to pay principal, premium, if any, interest and other amounts due under the loan
agreement, including an amount sufficient to cure any deficiencies in the debt service account or the loan
agreement reserve account, to the NMFA or the Trustee, as its assignee, to be deposited in the debt service
reserve account or the loan agreement reserve account held by the trustee, payable from and constituting a lien
upon the pledged revenues. The total principal remaining to be paid on the loan is $99,456 with no interest due.
Principal for the current year and total customer net revenues were $6,499 and $2,680,219, respectively.
The Town of Taos has pledged future revenues from the Taos Wastewater project, net of operation and
maintenance expenses, to repay $600,000 in NMFA/WTB Water Project, issued in 2009. The loans are payable
solely from utility customer net revenues and are payable through June 2029. The pledged revenues shall be in
an amount sufficient to pay principal, premium, if any, interest and other amounts due under the loan
agreement, including an amount sufficient to cure any deficiencies in the debt service account or the loan
agreement reserve account, to the NMFA or the Trustee, as its assignee, to be deposited in the debt service
reserve account or the loan agreement reserve account held by the trustee, payable from and constituting a lien
upon the pledged revenues. The total principal remaining to be paid on the loan is $459,030 with no interest
due. Principal for the current year and total customer net revenues were $29,993 and $2,680,219, respectively.
The Town of Taos has pledged future revenues from the Taos Wastewater project, net of operation and
maintenance expenses, to repay $1,200,000 in NMED Clean Water State Revolving Fund Project, issued in
2009. The loans are payable solely from utility customer net revenues and are payable through June 2030. The
pledged revenues shall be in an amount sufficient to pay principal, premium, if any, interest and other amounts
due under the loan agreement, including an amount sufficient to cure any deficiencies in the debt service
account or the loan agreement reserve account, to the NMED or the Trustee, as its assignee, to be deposited in
the debt service reserve account or the loan agreement reserve account held by the trustee, payable from and
constituting a lien upon the pledged revenues. The total principal remaining to be paid on the loan is $1,140,000
with no interest due. Principal for the current year and total customer net revenues were $60,000 and
$2,680,819, respectively.
The Town of Taos has pledged future revenues from the Taos Wastewater project, net of operation and
maintenance expenses, to repay $197,390 in NMFA/WTB Water Project, issued in 2013. The loans are payable
solely from utility customer net revenues and are payable through June 2033. The pledged revenues shall be in
an amount sufficient to pay principal, premium, if any, interest and other amounts due under the loan
agreement, including an amount sufficient to cure any deficiencies in the debt service account or the loan
agreement reserve account, to the NMFA or the Trustee, as its assignee, to be deposited in the debt service
reserve account or the loan agreement reserve account held by the trustee, payable from and constituting a lien
upon the pledged revenues. The total principal and interest remaining to be paid on the loan is $187,807 and
$4,731, respectively. Principal for the current year and total customer net revenues were $9,583 and
$2,680,819, respectively.
NOTE 20. Related Parties
The Town conducted transactions with several entities which are considered related parties. These related party
transactions are as follows:
Vendor Related Party Amount
DMC Broadcasting Mayor $ 18,928
Abeyta Engineering Council member 41,003
Dave’s Digital IT Manager 1,049
Northern Fire Suppression Town Clerk 1,802
Jim Fambro Finance Director 2,758
61
STATE OF NEW MEXICO
Town of Taos
Notes to the Financial Statements
June 30, 2014
NOTE 21. Net Position Restatement
The Town has restated net position in the amount of ($155,527) for the implementation of GASB Statement
No. 65, which requires all bond issuance costs to be recognized the year of issuance rather than amortizing over
the years of the bond repayment. As of June 30, 2013, the District maintained bond issuance costs of $217,429
with accumulated amortization of $61,902.
NOTE 22. Subsequent Pronouncements
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, 2015 and will significantly impact the Town.
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 November 2013, GASB Statement No. 71 Pension Transition for Contributions Made Subsequent to the
Measurement Date – an amendment of GASB Statement No. 68, Effective Date: The provisions of this
Statement are effective for fiscal years beginning after June 15, 2014. The provisions of this Statement are
required to be applied simultaneously with the provisions of Statement 68. The standard will be implemented
during fiscal year June 30, 2015.
62
SUPPLEMENTARY INFORMATION
63
STATE OF NEW MEXICO
Town of Taos
Nonmajor Governmental Fund Descriptions
June 30, 2014
Special Revenue Funds
Fire Protection
To account for the operations and maintenance of the fire department. Financing is provided by an allotment from the State of New
Mexico Fire Marshall’s Office. State Statute Section 59A-53-2, NMSA, 1978 compilation, requires the allotment be used only to
operate fire departments.
Recreation
To account for establishing and maintaining recreational programs in the Town. F inancing is provided by program r evenue and by a 1-
cent tax on cigarette sales, which is collected and distributed by the State of New Mexico. S tate Statute Section 7-12-15, NMSA, 1978
compilation requires this tax be used in the above manner.
Lodger’s Tax
To account for the operations of tourist facilities or for half of advertising, promoting and publicizing such facilities and tourist
attractions. Financing is provided by one and a half percent of a five percent tax on lodging gross receipts within the Town of Taos.
State Statute Section 4-6-41 provides for this tax to be imposed by the Town. Revenues received are pursuant to the Lodger’s Tax Act
(Section 3-38-15, NMSA 1978). Monies in the Lodger’s Tax Fund may be used to build, operate, and maintain tourism related
facilities.
Local Government Correction
The local government corrections fee fund is used to account for the collection of a mandatory correction fee for violations of any
municipal ordinance. Funds collected can only be used for jailer training, construction planning, construction, operation and
maintenance of a municipal jail, and for paying for costs of housing. Authority is NMSA 1978 Section 35-14-11B(1).
Law Enforcement Protection
The law enforcement protection fund was created to account for revenues received pursuant to the law enforcement protection fund
(Section 29-13-7, NMSA 1978). Amounts distributed from this fund may only be expended for the following purposes: (1) the repair
and purchase of law enforcement apparatus and equipment that meet nationally recognized standards; (2) expenses associated with
advanced law e nforcement planning and training; (3) complying with match or contribution requirements of federal funds for criminal
justice programs; (4) no more than fifty percent (50%) of the replacement salaries of municipal and county law enforcement personnel
while attending a specified advanced law enforcement planning and training.
Civic Center
To account for that portion of lodger’s tax receipts allocated for Civic Center operations and promotional expenditures, as well as the
revenues earned from Civic Center operations, including rentals, catering fees, and related charges for services. Authority is Town
Council resolution.
Domestic Violence Shelter
This fund was created to receive the appropriations and grants for the purpose of construction and maintaining the Domestic Violence
Shelter Home. Authority is Town Council resolution.
Public Transportation
To account for the portion of Lodger’s Tax receipts allocated for the purpose of providing transportation to the public. Authority is
Town Council resolution.
64
STATE OF NEW MEXICO
Town of Taos
Nonmajor Governmental Fund Descriptions
June 30, 2014
Special Revenue Funds (continued)
Community Grants
To account for various small grants for various community purposes. Each grant is authorized by the granting agency. The fund is
authorized by Town Council resolution.
Municipal Road Gasoline Tax
To account for a 1 cent gasoline tax that is used for repairing and construction of r oads. Also included in this fund is revenue from the
State Department of Transportation under a municipal arterial project agreement. Authority is 7-7-6.9 and 7-1-6.27 NMSA 1978.
¼ Cent Municipal Gross Receipts Tax
To account for proceeds from a supplemental municipal gross receipts tax, a portion of which is pledged toward payment of principal
and interest on Gross Receipts Tax Revenue Bonds. A fter required debt service transfers have been made, the remaining income of t his
fund is restricted for capital improvement purposes. NMSA 1978 Chapter 7, Article 20E-1 to 22.
Historical District
To account for all associated parking meter and associated revenues and costs, including leases, meter maintenance, personnel, and
historic district promotion.Authority is Town Council resolution.
Communications
To account for money collected by the Town from three other government entities to share centralized dispatch services throughout
the County of Taos. Funding is authorized by a joint powers agreement as authorized by Sections 11-1-1 through 11-1-7 NMSA
1978.
Confidential Informant
A structured accounting system, operated within the department, providing officers with investigative expense monies to support
operations related to the detection, investigation or enforcement of the laws related to crime. This includes, but is not limited to: paying
documented confidential informants and confidential sources; purchasing contraband as evidence; and paying expenses for surveillance
activities and equipment.Authority is Town Council resolution.
65
STATE OF NEW MEXICO
Town of Taos
Nonmajor Governmental Fund Descriptions
June 30, 2014
Debt Service Funds
2009 NMFA PPRF Disadvantage Program-Eco Park
This fund was created for the purpose of constructing phase I of a multi-phased recreation park.The repayment under the loan
agreement is solely from the first and second increments of municipal infrastructure gross receipts tax pursuant to section 7-19D-11,
NMSA 1978.
2008 Gross Receipts Tax Revenue Bond Retirement
This fund was created for the purpose of repayment of the bond issue from the 1.225% distribution of State Shared Gross Receipts Tax
revenues. Authority is Town Council resolution.
NMFA Debt Service Reserve Eco Park
This fund was created to be credited with transfers from the General Fund for the purpose of accumulating monies for payment of
principal and interest on the debt for repayment of Eco Park. Authority is Town Council resolution.
2007 NMFA Land Purchase
This fund was created to be credited with transfers from the General Fund for the purpose of accumulating monies for payment of
principal and interest on the debt for repayment of land purchase. Authority is Town Council resolution.
2011 PPRF Street Improvement
This fund was created for the purpose of accumulating monies for the payment of principal and interest on Series PPRF Street
Improvement Revenue Bonds. Authority is Town Council resolution.
Camino Rael Building
This fund was created for the purpose of accumulating monies for the payment of principal on an interest free loan from the United
States Forest Service. Authority is Town Council Resolution.
2011 PPRF Street Improvement Reserve
This fund was created for the purpose of accumulating monies for the payment of principal and interest on Series PPRF Street
Improvement Revenue Bonds. Authority is Town Council resolution.
66
STATE OF NEW MEXICO
Town of Taos
Nonmajor Governmental Fund Descriptions
June 30, 2014
Capital Projects Funds
Facilities Improvements
This fund was created to receive transfers from other funds for the purpose of improving facilities of the Town. Authority is Town
Council resolution.
Capital Projects
This fund was created to accumulate revenue and other financing sources for the purpose of financing general-purpose capital projects.
Authority is Town Council resolution.
Vehicle Replacement
This fund was created to receive transfers from other funds for the purpose of purchasing vehicles for the Town of Taos. Authority is
Town Council resolution.
1994 Gross Receipts Tax Revenue Bond Acquisition
This fund was created to receive the 1994 Gross Receipts Tax Bond proceeds for the purpose of construction of affordable housing.
Authority is Town Council resolution.
1999 Gasoline tax Acquisition
This fund was created to receive bond proceeds and to account for the capital outlay associated with the bond issue. Authority is the
Town Council resolution.
67
Fire Protection Recreation Lodger's Tax
Assets
Cash and cash equivalents 18,434$ 5,412$ 285,173$
Investments 263,258 7,000 -
Receivables:
Other taxes - - 225,856
Due from other governments - - -
Total assets 281,692$ 12,412$ 511,029$
Liabilities
Accounts payable 1,021$ -$ 28,951$
Accrued payroll - - 4,996
Deposits held in trust for others - - -
Total liabilities 1,021 - 33,947
Deferred inflows of resources
Unavailable revenue- property taxes - - -
Unavailable revenue- delinquent lodgers tax - - 126,150
Total deferred inflows of resources - - 126,150
Fund balances
Spendable
Restricted for:
General government - - -
Public safety - - -
Culture and recreation - 12,412 350,932
Fire protection 280,671 - -
Health and welfare - - -
Debt service expenditures - - -
Capital projects - - -
Unassigned - - -
Total fund balances 280,671 12,412 350,932
Total liabilities, deferred inflows of resources,
and fund balances 281,692$ 12,412$ 511,029$
STATE OF NEW MEXICO
June 30, 2014
Nonmajor Governmental Funds
Town of Taos
Combining Balance Sheet
Special Revenue
The accompanying notes are an integral part of these financial statements
68
Statement A-1
Page 1 of 3
Local
Government
Correction
Law
Enforcement
Protection Civic Center
Domestic
Violence Shelter
Public
Transportation
Community
Grants
92,734$ 9,721$ 680$ 2$ 85,325$ 33,027$
- - 2,000 - - -
- - - - - -
- 32,600 - 82,013 21,080 91,267
92,734$ 42,321$ 2,680$ 82,015$ 106,405$ 124,294$
5,700$ 1,843$ -$ 82,014$ 6,370$ 14,335$
- - - - 6,534 -
- - 5,103 - - -
5,700 1,843 5,103 82,014 12,904 14,335
- - - - - -
- - - - - -
- - - - - -
- - - - - 109,959
87,034 40,478 - - - -
- - - - - -
- - - - - -
- - - 1 93,501 -
- - - - - -
- - - - - -
- - (2,423) - - -
87,034 40,478 (2,423) 1 93,501 109,959
92,734$ 42,321$ 2,680$ 82,015$ 106,405$ 124,294$
Special Revenue
69
Municipal Road
Gasoline Tax
1/4 Cent
Municipal Gross
Receipts Tax
Historical
District
Assets
Cash and cash equivalents -$ -$ 47,713$
Investments - - -
Receivables:
Other taxes - 142,975 -
Due from other governments - - -
Total assets -$ 142,975$ 47,713$
Liabilities
Accounts payable -$ -$ -$
Accrued payroll - - -
Deposits held in trust for others - - -
Total liabilities - - -
Deferred inflows of resources
Unavailable revenue- property taxes - - -
Unavailable revenue- delinquent lodgers tax - - -
Total deferred inflows of resources - - -
Fund balances
Spendable
Restricted for:
General government - 142,975 47,713
Public safety - - -
Culture and recreation - - -
Fire protection - - -
Health and welfare - - -
Debt service expenditures - - -
Capital projects - - -
Unassigned - - -
Total fund balances - 142,975 47,713
Total liabilities, deferred inflows of resources,
and fund balances -$ 142,975$ 47,713$
The accompanying notes are an integral part of these financial statements
June 30, 2014
Combining Balance Sheet
Nonmajor Governmental Funds
Town of Taos
STATE OF NEW MEXICO
Special Revenue
70
Statement A-1
Page 2 of 3
Communications
Confidential
Informant
2009 NMFA
PPRF
Disadvantage
Program- Eco
Park
2008 Gross
Receipts Tax
Revenue Bond
Retirement
NMFA Debt
Service Reserve
Eco Park
2007 NMFA
Land Purchase
147,983$ 8,500$ 2$ 1$ 15,778$ 48$
- - - - 167,396 -
- - - - - -
104,430 - - - - -
252,413$ 8,500$ 2$ 1$ 183,174$ 48$
2,729$ -$ -$ -$ -$ -$
13,327 - - - - -
- - - - - -
16,056 - - - - -
- - - - - -
- - - - - -
- - - - - -
236,357 8,500 - - - -
- - - - - -
- - - - - -
- - - - - -
- - - - - -
- - 2 1 183,174 48
- - - - - -
- - - - - -
236,357 8,500 2 1 183,174 48
252,413$ 8,500$ 2$ 1$ 183,174$ 48$
Special Revenue Debt Service
71
2011 PPRF
Street
Improvement
Camino Rael
Building
2011 PPRF
Street
Improvement
Reserve
Assets
Cash and cash equivalents 2,651$ -$ 13,147$
Investments - - 156,878
Receivables:
Other taxes - - -
Due from other governments - - -
Total assets 2,651$ -$ 170,025$
Liabilities
Accounts payable -$ -$ -$
Accrued payroll - - -
Deposits held in trust for others - - -
Total liabilities - - -
Deferred inflows of resources
Unavailable revenue- property taxes - - -
Unavailable revenue- delinquent lodgers tax - - -
Total deferred inflows of resources - - -
Fund balances
Spendable
Restricted for:
General government - - -
Public safety - - -
Culture and recreation - - -
Fire protection - - -
Health and welfare - - -
Debt service expenditures 2,651 - 170,025
Capital projects - - -
Unassigned - - -
Total fund balances 2,651 - 170,025
Total liabilities, deferred inflows of resources,
and fund balances 2,651$ -$ 170,025$
The accompanying notes are an integral part of these financial statements
STATE OF NEW MEXICO
Debt Service
June 30, 2014
Combining Balance Sheet
Nonmajor Governmental Funds
Town of Taos
72
Statement A-1
Page 3 of 3
Facilities
Improvements Capital Projects
Vehicle
Replacement
1994 Gross
Receipts Tax
Revenue Bond
Acquisition
1999 Gasoline
Tax Acquisition
Total Nonmajor
Governmental
Funds
194,109$ 32,062$ 50,808$ 56,381$ 849,712$ 1,949,403$
27,000 412,706 34,000 421,303 214,372 1,705,913
- 108,963 - - - 477,794
- - - - - 331,390
221,109$ 553,731$ 84,808$ 477,684$ 1,064,084$ 4,464,500$
1,569$ 4,334$ -$ 17,500$ 10,008$ 176,374$
- - - - - 24,857
- - - - - 5,103
1,569 4,334 - 17,500 10,008 206,334
- - - - - -
- - - - - 126,150
- - - - - 126,150
- - - - - 545,504
- - - - - 127,512
- - - - - 363,344
- - - - - 280,671
- - - - - 93,502
- - - - - 355,901
219,540 549,397 84,808 460,184 1,054,076 2,368,005
- - - - - (2,423)
219,540 549,397 84,808 460,184 1,054,076 4,132,016
221,109$ 553,731$ 84,808$ 477,684$ 1,064,084$ 4,464,500$
Capital Projects
73
Fire Protection Recreation Lodger's Tax
Revenues
Taxes
Gross receipts -$ -$ -$
Gasoline and motor vehicle taxes - - -
Lodger's taxes - - 1,034,548
Other - - -
Intergovernmental income
Federal operating grants - - -
Federal capital grants - - -
State operating grants 216,304 - 4,000
State capital grants - - -
Charges for services - 523 113,339
Licenses and fees - - -
Investment income (loss)- - -
Miscellaneous - 2,326 4,240
Total revenues 216,304 2,849 1,156,127
Expenditures
Current
General government - - -
Public safety 100,398 - -
Public works - - -
Culture and recreation - 5,805 859,856
Health and welfare - - -
Capital outlay 100,500 - -
Debt service
Principal - - -
Interest - - -
Total expenditures 200,898 5,805 859,856
Excess (deficiency) of revenues over
expenditures 15,406 (2,956) 296,271
Other financing sources (uses)
Proceeds from sale of capital assets - - -
Transfers in - 4,808 699,439
Transfers out - - (936,850)
Total other financing sources (uses)- 4,808 (237,411)
Net change in fund balances 15,406 1,852 58,860
Fund balances - beginning of year 265,265 10,560 292,072
Fund balances - end of year 280,671$ 12,412$ 350,932$
The accompanying notes are an integral part of these financial statements
For the Year Ended June 30, 2014
Combining Statement of Revenues, Expenditures and Changes in Fund Balances
Nonmajor Governmental Funds
Town of Taos
STATE OF NEW MEXICO
Special Revenue
74
Statement A-2
Page 1 of 3
Local
Governmental
Correction
Law
Enforcement
Protection Civic Center
Domestic
Violence Shelter
Public
Transportation
Community
Grants
-$ -$ -$ -$ -$ -$
- - - - - -
- - - - - -
- - - - - -
- - - 139,702 - -
- - - - - -
- 66,400 - - 255,508 307,979
- - - - - -
99,190 - 22,386 - 66,630 -
20,394 - 300 - - -
- - - - - -
- - 116 - 1,080 -
119,584 66,400 22,802 139,702 323,218 307,979
- - - - - 568,853
92,071 29,940 - - - -
- - - - - -
- - 79,743 - - -
- - - 139,702 505,498 -
- - - - 1,438 -
- - - - - -
- - - - - -
92,071 29,940 79,743 139,702 506,936 568,853
27,513 36,460 (56,941) - (183,718) (260,874)
- - - - 501 -
- - 52,041 - 208,470 263,000
- - - - - (4,808)
- - 52,041 - 208,971 258,192
27,513 36,460 (4,900) - 25,253 (2,682)
59,521 4,018 2,477 1 68,248 112,641
87,034$ 40,478$ (2,423)$ 1$ 93,501$ 109,959$
Special Revenue
75
Municipal Road
Gasoline Tax
1/4 Cent
Municipal Gross
Receipts Tax
Historical
District
Revenues
Taxes
Gross receipts -$ 938,814$ -$
Gasoline and motor vehicle taxes 99,523 - -
Lodger's taxes - - -
Other - - -
Intergovernmental income
Federal operating grants - - -
Federal capital grants - - -
State operating grants - - -
State capital grants - - -
Charges for services - - -
Licenses and fees - - 129,553
Investment income (loss)- - -
Miscellaneous - - -
Total revenues 99,523 938,814 129,553
Expenditures
Current
General government - - -
Public safety - - -
Public works - - -
Culture and recreation - - 81,840
Health and welfare - - -
Capital outlay - - -
Debt service
Principal - - -
Interest - - -
Total expenditures - - 81,840
Excess (deficiency) of revenues over
expenditures 99,523 938,814 47,713
Other financing sources (uses)
Proceeds from sale of capital assets - - -
Transfers in - - 10,000
Transfers out (115,852) (937,022) (10,000)
Total other financing sources (uses)(115,852) (937,022) -
Net change in fund balances (16,329) 1,792 47,713
Fund balances - beginning of year 16,329 141,183 -
Fund balances - end of year -$ 142,975$ 47,713$
The accompanying notes are an integral part of these financial statements
Special Revenue
STATE OF NEW MEXICO
For the Year Ended June 30, 2014
Combining Statement of Revenues, Expenditures and Changes in Fund Balances
Nonmajor Governmental Funds
Town of Taos
76
Statement A-2
Page 2 of 3
Communications
Confidential
Informant
2009 NMFA
PPRF
Disadvantage
Program- Eco
Park
2008 Gross
Receipts Tax
Revenue Bond
Retirement
NMFA Debt
Service Reserve
Eco Park
2007 NMFA
Land Purchase
-$ -$ -$ -$ -$ -$
- - - - - -
- - - - - -
- - - - - -
- - - - - -
- - - - - -
- - - - - -
- - - - - -
719,493 - - - - -
- - - - - -
- - - - 729 7
- - - - - -
719,493 - - - 729 7
661,429 1,500 - - - 1,052
- - - - - -
- - - - - -
- - - - - -
- - - - - -
11,048 - - - - -
- - 129,900 280,000 - 100,326
- - 50,854 215,825 - 12,364
672,477 1,500 180,754 495,825 - 113,742
47,016 (1,500) (180,754) (495,825) 729 (113,735)
- - - - - -
111,407 10,000 180,756 495,825 - 113,742
- - - - - -
111,407 10,000 180,756 495,825 - 113,742
158,423 8,500 2 - 729 7
77,934 - - 1 182,445 41
236,357$ 8,500$ 2$ 1$ 183,174$ 48$
Special Revenue Debt Service
77
Debt Service
2011 PPRF
Street
Improvement
Camino Rael
Builidng
2011 PPRF
Street
Improvement
Reserve
Revenues
Taxes
Gross receipts -$ -$ -$
Gasoline and motor vehicle taxes - - -
Lodger's taxes - - -
Other - - -
Intergovernmental income
Federal operating grants - - -
Federal capital grants - - -
State operating grants - - -
State capital grants - - -
Charges for services - - -
Licenses and fees - - -
Investment income (loss)504 - 163
Miscellaneous - - -
Total revenues 504 - 163
Expenditures
Current
General government - - -
Public safety - - -
Public works - - -
Culture and recreation - - -
Health and welfare - - -
Capital outlay - - -
Debt service
Principal 142,378 18,000 -
Interest 23,717 - -
Total expenditures 166,095 18,000 -
Excess (deficiency) of revenues over
expenditures (165,591) (18,000) 163
Other financing sources (uses)
Proceeds from sale of capital assets - - -
Transfers in 70,972 18,000 -
Transfers out - - -
Total other financing sources (uses)70,972 18,000 -
Net change in fund balances (94,619) - 163
Fund balances - beginning of year 97,270 - 169,862
Fund balances - end of year 2,651$ -$ 170,025$
STATE OF NEW MEXICO
The accompanying notes are an integral part of these financial statements
For the Year Ended June 30, 2014
Combining Statement of Revenues, Expenditures and Changes in Fund Balances
Nonmajor Governmental Funds
Town of Taos
78
Statement A-2
Page 3 of 3
Facilities
Improvements Capital Projects
Vehicle
Replacement
1994 Gross
Receipts Tax
Revenue Bond
Acquisition
1999 Gasoline
Tax Acquisition
Total Nonmajor
Governmental
Funds
-$ 704,111$ -$ -$ -$ 1,642,925$
- - - - - 99,523
- - - - - 1,034,548
- - - - - -
- - - - - 139,702
- - - - - -
- - - - - 850,191
- 55,711 - - - 55,711
1,333 - - - - 1,022,894
- - - - - 150,247
- 510 - 527 796 3,236
- - - 4,000 - 11,762
1,333 760,332 - 4,527 796 5,010,739
- - - - - 1,232,834
- - - - - 222,409
- - - 141,999 - 141,999
- - - - - 1,027,244
- - - - - 645,200
201,300 263,356 139,618 - 765,687 1,482,947
- - - - - 670,604
- - - - - 302,760
201,300 263,356 139,618 141,999 765,687 5,725,997
(199,967) 496,976 (139,618) (137,472) (764,891) (715,258)
- - - - - 501
157,800 46,468 - - 228,976 2,671,704
- (699,994) - - - (2,704,526)
157,800 (653,526) - - 228,976 (32,321)
(42,167) (156,550) (139,618) (137,472) (535,915) (747,579)
261,707 705,947 224,426 597,656 1,589,991 4,879,595
219,540$ 549,397$ 84,808$ 460,184$ 1,054,076$ 4,132,016$
Capital Projects
79
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 225,842 216,304 216,304 -
State capital grants - - - -
Charges for services - - - -
Licenses and fees - - - -
Investment income (loss)- - - -
Miscellaneous - - - -
Total revenues 225,842 216,304 216,304 -
Expenditures
Current
General government - - - -
Public safety 221,293 211,755 100,398 111,357
Public works - - - -
Culture and recreation - - - -
Health and welfare - - - -
Capital outlay 269,813 269,813 100,500 169,313
Debt service
Principal - - - -
Interest - - - -
Total expenditures 491,106 481,568 200,898 280,670
Excess (deficiency) of revenues over
expenditures (265,264) (265,264) 15,406 280,670
Other financing sources (uses)
Designated cash (budgeted increase in cash)265,264 265,264 - (265,264)
Transfers in - - - -
Transfers out - - - -
Total other financing sources (uses)265,264 265,264 - (265,264)
Net change in fund balance - - 15,406 15,406
Fund balance - beginning of year - - 265,265 265,265
Fund balance - end of year -$ -$ 280,671$ 280,671$
STATE OF NEW MEXICO
The accompanying notes are an integral part of these financial statements
For the Year Ended June 30, 2014
Budget (GAAP Basis) and Actual
Statement of Revenues, Expenditures and Changes in Fund Balance
Fire Protection Special Revenue Fund
Town of Taos
Budgeted Amounts
80
Statement B-2
Variances
Actual
Favorable
(Unfavorable)
Original Final (GAAP Basis)Final to Actual
Revenues
Taxes
Property taxes -$ -$ -$ -$
Gross receipts - - - -
Gasoline and motor vehicle - - - -
Other - - - -
Intergovernmental income -
Federal operating grants - - - -
Federal capital grants - - - -
State operating grants - - - -
State capital grants - - - -
Charges for services 5,033 5,033 523 (4,510)
Licenses and fees - - - -
Investment income (loss)- - - -
Miscellaneous - - 2,326 2,326
Total revenues 5,033 5,033 2,849 (2,184)
Expenditures
Current
General government - - - -
Public safety - - - -
Public works - - - -
Culture and recreation 9,445 9,445 5,805 3,640
Health and welfare - - - -
Capital outlay - - - -
Debt service
Principal - - - -
Interest - - - -
Total expenditures 9,445 9,445 5,805 3,640
Excess (deficiency) of revenues over expenditures (4,412) (4,412) (2,956) 1,456
Other financing sources (uses)
Designated cash (budgeted increase in cash)4,412 (396) - 396
Transfers in - 4,808 4,808 -
Transfers out - - - -
Total other financing sources (uses)4,412 4,412 4,808 396
Net change in fund balance - - 1,852 1,852
Fund balance - beginning of year - - 10,560 10,560
Fund balance - end of year -$ -$ 12,412$ 12,412$
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, 2014
Budget (GAAP Basis) and Actual
81
Statement B-3
Variances
Actual
Favorable
(Unfavorable)
Original Final (GAAP Basis)Final to Actual
Revenues
Taxes
Property taxes -$ -$ -$ -$
Gross receipts - - - -
Gasoline and motor vehicle - - - -
Lodger's taxes 823,000 968,000 1,034,548 66,548
Intergovernmental income -
Federal operating grants - - - -
Federal capital grants - - - -
State operating grants 10,000 10,000 4,000 (6,000)
State capital grants - - - -
Charges for services 48,800 158,999 113,339 (45,660)
Licenses and fees - - - -
Investment income (loss)- - - -
Miscellaneous 2,000 2,000 4,240 2,240
Total revenues 883,800 1,138,999 1,156,127 17,128
Expenditures
Current
General government - - - -
Public safety - - - -
Public works - - - -
Culture and recreation 725,582 935,402 859,856 75,546
Health and welfare - - - -
Capital outlay - 38,445 - 38,445
Debt service
Principal - - - -
Interest - - - -
Total expenditures 725,582 973,847 859,856 113,991
Excess (deficiency) of revenues over expenditures 158,218 165,152 296,271 131,119
Other financing sources (uses)
Designated cash (budgeted increase in cash)76,337 72,259 - (72,259)
Transfers in 557,295 699,439 699,439 -
Transfers out (791,850) (936,850) (936,850) -
Total other financing sources (uses)(158,218) (165,152) (237,411) (72,259)
Net change in fund balance - - 58,860 58,860
Fund balance - beginning of year - - 292,072 292,072
Fund balance - end of year -$ -$ 350,932$ 350,932$
STATE OF NEW MEXICO
The accompanying notes are an integral part of these financial statements
For the Year Ended June 30, 2014
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
82
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 99,190 99,190 99,190 -
Licenses and fees 21,325 21,325 20,394 (931)
Investment income (loss)- - - -
Miscellaneous - - - -
Total revenues 120,515 120,515 119,584 (931)
Expenditures
Current
General government - - - -
Public safety 135,000 135,000 92,071 42,929
Public works - - - -
Culture and recreation - - - -
Health and welfare - - - -
Capital outlay - - - -
Debt service
Principal - - - -
Interest - - - -
Total expenditures 135,000 135,000 92,071 42,929
Excess (deficiency) of revenues over expenditures (14,485) (14,485) 27,513 41,998
Other financing sources (uses)
Designated cash (budgeted increase in cash)14,485 14,485 - (14,485)
Transfers in - - - -
Transfers out - - - -
Total other financing sources (uses)14,485 14,485 - (14,485)
Net change in fund balance - - 27,513 27,513
Fund balance - beginning of year - - 59,521 59,521
Fund balance - end of year -$ -$ 87,034$ 87,034$
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, 2014
Budget (GAAP Basis) and Actual
Statement of Revenues, Expenditures and Changes in Fund Balance
83
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 33,800 33,800 66,400 32,600
State capital grants - - - -
Charges for services - - - -
Licenses and fees - - - -
Investment income (loss)- - - -
Miscellaneous - - - -
Total revenues 33,800 33,800 66,400 32,600
Expenditures
Current
General government - - - -
Public safety 37,818 37,818 29,940 7,878
Public works - - - -
Culture and recreation - - - -
Health and welfare - - - -
Capital outlay - - - -
Debt service
Principal - - - -
Interest - - - -
Total expenditures 37,818 37,818 29,940 7,878
Excess (deficiency) of revenues over expenditures (4,018) (4,018) 36,460 40,478
Other financing sources (uses)
Designated cash (budgeted increase in cash)4,018 4,018 - (4,018)
Transfers in - - - -
Transfers out - - - -
Total other financing sources (uses)4,018 4,018 - (4,018)
Net change in fund balance - - 36,460 36,460
Fund balance - beginning of year - - 4,018 4,018
Fund balance - end of year -$ -$ 40,478$ 40,478$
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, 2014
Budget (GAAP Basis) and Actual
Statement of Revenues, Expenditures and Changes in Fund Balance
84
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 35,187 35,187 22,386 (12,801)
Licenses and fees - - 300 300
Investment income (loss)- - - -
Miscellaneous 185 185 116 (69)
Total revenues 35,372 35,372 22,802 (12,570)
Expenditures
Current
General government - - - -
Public safety - - - -
Public works - - - -
Culture and recreation 121,142 121,137 79,743 41,394
Health and welfare - - - -
Capital outlay - - - -
Debt service
Principal - - - -
Interest - - - -
Total expenditures 121,142 121,137 79,743 41,394
Excess (deficiency) of revenues over expenditures (85,770) (85,765) (56,941) 28,824
Other financing sources (uses)
Designated cash (budgeted increase in cash)7,585 7,580 - (7,580)
Transfers in 78,185 78,185 52,041 (26,144)
Transfers out - - - -
Total other financing sources (uses)85,770 85,765 52,041 (33,724)
Net change in fund balance - - (4,900) (4,900)
Fund balance - beginning of year - - 2,477 2,477
Fund balance - end of year -$ -$ (2,423)$ (2,423)$
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, 2014
Budget (GAAP Basis) and Actual
Statement of Revenues, Expenditures and Changes in Fund Balance
85
Statement B-7
Variances
Actual
Favorable
(Unfavorable)
Original Final (GAAP Basis)Final to Actual
Revenues
Taxes
Property taxes -$ -$ -$ -$
Gross receipts - - - -
Gasoline and motor vehicle - - - -
Other - - - -
Intergovernmental income
Federal operating grants 150,000 150,000 139,702 (10,298)
Federal capital grants - - - -
State operating grants - - - -
State capital grants - - - -
Charges for services - - - -
Licenses and fees - - - -
Investment income (loss)- - - -
Miscellaneous - - - -
Total revenues 150,000 150,000 139,702 (10,298)
Expenditures
Current
General government - - - -
Public safety - - - -
Public works - - - -
Culture and recreation - - - -
Health and welfare 150,000 150,000 139,702 10,298
Capital outlay - - - -
Debt service
Principal - - - -
Interest - - - -
Total expenditures 150,000 150,000 139,702 10,298
Excess (deficiency) of revenues over expenditures - - - -
Other financing sources (uses)
Designated cash (budgeted increase in cash)- - - -
Transfers in - - - -
Transfers out - - - -
Total other financing sources (uses)- - - -
Net change in fund balance - - - -
Fund balance - beginning of year - - 1 1
Fund balance - end of year -$ -$ 1$ 1$
Domestic Violence Shelter Special Revenue Fund
Town of Taos
STATE OF NEW MEXICO
The accompanying notes are an integral part of these financial statements
Budgeted Amounts
For the Year Ended June 30, 2014
Budget (GAAP Basis) and Actual
Statement of Revenues, Expenditures and Changes in Fund Balance
86
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 438,810 412,499 255,508 (156,991)
State capital grants - - - -
Charges for services 68,000 58,000 66,630 8,630
Licenses and fees - - - -
Investment income (loss)- - - -
Miscellaneous - - 1,080 1,080
Total revenues 506,810 470,499 323,218 (147,281)
Expenditures
Current
General government - - - -
Public safety - - - -
Public works - - - -
Culture and recreation - - - -
Health and welfare 582,674 556,678 505,498 51,180
Capital outlay 115,500 134,185 1,438 132,747
Debt service
Principal - - - -
Interest - - - -
Total expenditures 698,174 690,863 506,936 183,927
Excess (deficiency) of revenues over expenditures (191,364) (220,364) (183,718) 36,646
Other financing sources (uses)
Designated cash (budgeted increase in cash)11,894 11,894 - (11,894)
Transfers in 179,470 208,470 208,470 -
Transfers out - - - -
Proceeds from sale of capital assets - - 501 501
Total other financing sources (uses)191,364 220,364 208,971 (11,393)
Net change in fund balance - - 25,253 25,253
Fund balance - beginning of year - - 68,248 68,248
Fund balance - end of year -$ -$ 93,501$ 93,501$
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, 2014
Budget (GAAP Basis) and Actual
Statement of Revenues, Expenditures and Changes in Fund Balance
87
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 356,800 460,328 307,979 (152,349)
State capital grants - - - -
Charges for services - - - -
Licenses and fees - - - -
Investment income (loss)- - - -
Miscellaneous - - - -
Total revenues 356,800 460,328 307,979 (152,349)
Expenditures
Current
General government 719,557 823,085 568,853 254,232
Public safety - - - -
Public works - - - -
Culture and recreation - - - -
Health and welfare - - - -
Capital outlay - - - -
Debt service
Principal - - - -
Interest - - - -
Total expenditures 719,557 823,085 568,853 254,232
Excess (deficiency) of revenues over expenditures (362,757) (362,757) (260,874) 101,883
Other financing sources (uses)
Designated cash (budgeted increase in cash)99,757 104,565 - (104,565)
Transfers in 263,000 263,000 263,000 -
Transfers out - (4,808) (4,808) -
Total other financing sources (uses)362,757 362,757 258,192 (104,565)
Net change in fund balance - - (2,682) (2,682)
Fund balance - beginning of year - - 112,641 112,641
Fund balance - end of year -$ -$ 109,959$ 109,959$
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, 2014
Budget (GAAP Basis) and Actual
88
Statement B-10
Variances
Actual
Favorable
(Unfavorable)
Original Final (GAAP Basis)Final to Actual
Revenues
Taxes
Property taxes -$ -$ -$ -$
Gross receipts - - - -
Gasoline and motor vehicle 111,879 115,852 99,523 (16,329)
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 111,879 115,852 99,523 (16,329)
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 111,879 115,852 99,523 (16,329)
Other financing sources (uses)
Designated cash (budgeted increase in cash)- - - -
Transfers in - - - -
Transfers out (111,879) (115,852) (115,852) -
Total other financing sources (uses)(111,879) (115,852) (115,852) -
Net change in fund balance - - (16,329) (16,329)
Fund balance - beginning of year - - 16,329 16,329
Fund balance - end of year -$ -$ -$ -$
Municipal Road Gasoline Tax Special Revenue Fund
Town of Taos
STATE OF NEW MEXICO
The accompanying notes are an integral part of these financial statements
Budgeted Amounts
For the Year Ended June 30, 2014
Budget (GAAP Basis) and Actual
Statement of Revenues, Expenditures and Changes in Fund Balance
89
Statement B-11
Variances
Actual
Favorable
(Unfavorable)
Original Final (GAAP Basis)Final to Actual
Revenues
Taxes
Property taxes -$ -$ -$ -$
Gross receipts 916,259 937,023 938,814 1,791
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 916,259 937,023 938,814 1,791
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 916,259 937,023 938,814 1,791
Other financing sources (uses)
Designated cash (budgeted increase in cash)- - - -
Transfers in - - - -
Transfers out (916,259) (937,023) (937,022) 1
Total other financing sources (uses)(916,259) (937,023) (937,022) 1
Net change in fund balance - - 1,792 1,792
Fund balance - beginning of year - - 141,183 141,183
Fund balance - end of year -$ -$ 142,975$ 142,975$
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, 2014
Budget (GAAP Basis) and Actual
90
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 - - - -
Licenses and fees 300,000 140,500 129,553 (10,947)
Investment income (loss)- - - -
Miscellaneous - - - -
Total revenues 300,000 140,500 129,553 (10,947)
Expenditures
Current
General government - - - -
Public safety - - - -
Public works - - - -
Culture and recreation 215,824 140,500 81,840 58,660
Health and welfare - - - -
Capital outlay 84,176 - - -
Debt service
Principal - - - -
Interest - - - -
Total expenditures 300,000 140,500 81,840 58,660
Excess (deficiency) of revenues over expenditures - - 47,713 47,713
Other financing sources (uses)
Designated cash (budgeted increase in cash)- - - -
Transfers in - - 10,000 10,000
Transfers out - - (10,000) (10,000)
Total other financing sources (uses)- - - -
Net change in fund balance - - 47,713 47,713
Fund balance - beginning of year - - - -
Fund balance - end of year -$ -$ 47,713$ 47,713$
Budgeted Amounts
The accompanying notes are an integral part of these financial statements
STATE OF NEW MEXICO
Town of Taos
Historical District Special Revenue Fund
Statement of Revenues, Expenditures and Changes in Fund Balance
Budget (GAAP Basis) and Actual
For the Year Ended June 30, 2014
91
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 779,786 675,898 719,493 43,595
Licenses and fees - - - -
Investment income (loss)- - - -
Miscellaneous - - - -
Total revenues 779,786 675,898 719,493 43,595
Expenditures
Current
General government 743,792 725,664 661,429 64,235
Public safety - - - -
Public works - - - -
Culture and recreation - - - -
Health and welfare - - - -
Capital outlay - 22,100 11,048 11,052
Debt service
Principal - - - -
Interest - - - -
Total expenditures 743,792 747,764 672,477 75,287
Excess (deficiency) of revenues over expenditures 35,994 (71,866) 47,016 118,882
Other financing sources (uses)
Designated cash (budgeted increase in cash)(35,994) (39,541) - 39,541
Transfers in - 111,407 111,407 -
Transfers out - - - -
Total other financing sources (uses)(35,994) 71,866 111,407 39,541
Net change in fund balance - - 158,423 158,423
Fund balance - beginning of year - - 77,934 77,934
Fund balance - end of year -$ -$ 236,357$ 236,357$
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, 2014
Budget (GAAP Basis) and Actual
Statement of Revenues, Expenditures and Changes in Fund Balance
92
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 - 10,000 1,500 8,500
Public safety - - - -
Public works - - - -
Culture and recreation - - - -
Health and welfare - - - -
Capital outlay - - - -
Debt service
Principal - - - -
Interest - - - -
Total expenditures - 10,000 1,500 8,500
Excess (deficiency) of revenues over expenditures - (10,000) (1,500) 8,500
Other financing sources (uses)
Designated cash (budgeted increase in cash)- - - -
Transfers in - 10,000 10,000 -
Transfers out - - - -
Total other financing sources (uses)- 10,000 10,000 -
Net change in fund balance - - 8,500 8,500
Fund balance - beginning of year - - - -
Fund balance - end of year -$ -$ 8,500$ 8,500$
Budgeted Amounts
The accompanying notes are an integral part of these financial statements
STATE OF NEW MEXICO
Town of Taos
Confidential Informant Special Revenue Fund
Statement of Revenues, Expenditures and Changes in Fund Balance
Budget (GAAP Basis) and Actual
For the Year Ended June 30, 2014
93
Statement B-15
Variances
Actual
Favorable
(Unfavorable)
Original Final (GAAP Basis)Final to Actual
Revenues
Taxes
Property taxes -$ -$ -$ -$
Gross receipts - - - -
Gasoline and motor vehicle - - - -
Other - - - -
Intergovernmental income
Federal operating grants - - - -
Federal capital grants - - - -
State operating grants - - - -
State capital grants - - - -
Charges for services - - - -
Licenses and fees - - - -
Investment income (loss)- - - -
Miscellaneous - - - -
Total revenues - - - -
Expenditures
Current
General government - - - -
Public safety - - - -
Public works - - - -
Culture and recreation - - - -
Health and welfare - - - -
Capital outlay - - - -
Debt service
Principal 129,900 129,900 129,900 -
Interest 50,856 50,856 50,854 2
Total expenditures 180,756 180,756 180,754 2
Excess (deficiency) of revenues over expenditures (180,756) (180,756) (180,754) 2
Other financing sources (uses)
Designated cash (budgeted increase in cash)(1) (1) - 1
Transfers in 180,757 180,757 180,756 (1)
Transfers out - - - -
Total other financing sources (uses)180,756 180,756 180,756 -
Net change in fund balance - - 2 2
Fund balance - beginning of year - - - -
Fund balance - end of year -$ -$ 2$ 2$
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, 2014
Budget (GAAP Basis) and Actual
Statement of Revenues, Expenditures and Changes in Fund Balance
94
Statement B-16
Variances
Actual
Favorable
(Unfavorable)
Original Final (GAAP Basis)Final to Actual
Revenues
Taxes
Property taxes -$ -$ -$ -$
Gross receipts - - - -
Gasoline and motor vehicle - - - -
Other - - - -
Intergovernmental income
Federal operating grants - - - -
Federal capital grants - - - -
State operating grants - - - -
State capital grants - - - -
Charges for services - - - -
Licenses and fees - - - -
Investment income (loss)- - - -
Miscellaneous - - - -
Total revenues - - - -
Expenditures
Current
General government - - - -
Public safety - - - -
Public works - - - -
Culture and recreation - - - -
Health and welfare - - - -
Capital outlay - - - -
Debt service
Principal 280,000 280,000 280,000 -
Interest 215,825 215,825 215,825 -
Total expenditures 495,825 495,825 495,825 -
Excess (deficiency) of revenues over expenditures (495,825) (495,825) (495,825) -
Other financing sources (uses)
Designated cash (budgeted increase in cash)1 1 - (1)
Transfers in 495,824 495,824 495,825 1
Transfers out - - - -
Total other financing sources (uses)495,825 495,825 495,825 -
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, 2014
Budget (GAAP Basis) and Actual
95
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)- - 729 729
Miscellaneous - - - -
Total revenues - - 729 729
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 - - 729 729
Other financing sources (uses)
Designated cash (budgeted increase in cash)- - - -
Transfers in - - - -
Transfers out - - - -
Total other financing sources (uses)- - - -
Net change in fund balance - - 729 729
Fund balance - beginning of year - - 182,445 182,445
Fund balance - end of year -$ -$ 183,174$ 183,174$
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, 2014
Budget (GAAP Basis) and Actual
Statement of Revenues, Expenditures and Changes in Fund Balance
96
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)- - 7 7
Miscellaneous - - - -
Total revenues - - 7 7
Expenditures
Current
General government 1,052 1,052 1,052 -
Public safety - - - -
Public works - - - -
Culture and recreation - - - -
Health and welfare - - - -
Capital outlay - - - -
Debt service
Principal 100,326 100,326 100,326 -
Interest 12,364 12,364 12,364 -
Total expenditures 113,742 113,742 113,742 -
Excess (deficiency) of revenues over expenditures (113,742) (113,742) (113,735) 7
Other financing sources (uses)
Designated cash (budgeted increase in cash)- - - -
Transfers in 113,742 113,742 113,742 -
Transfers out - - - -
Total other financing sources (uses)113,742 113,742 113,742 -
Net change in fund balance - - 7 7
Fund balance - beginning of year - - 41 41
Fund balance - end of year -$ -$ 48$ 48$
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, 2014
Budgeted Amounts
Budget (GAAP Basis) and Actual
Statement of Revenues, Expenditures and Changes in Fund Balance
97
Statement B-19
Variances
Actual
Favorable
(Unfavorable)
Original Final (GAAP Basis)Final to Actual
Revenues
Taxes
Property taxes -$ -$ -$ -$
Gross receipts - - - -
Gasoline and motor vehicle - - - -
Other - - - -
Intergovernmental income -
Federal operating grants - - - -
Federal capital grants - - - -
State operating grants - - - -
State capital grants - - - -
Charges for services - - - -
Licenses and fees - - - -
Investment income (loss)- - 504 504
Miscellaneous - - - -
Total revenues - - 504 504
Expenditures
Current
General government - - - -
Public safety - - - -
Public works - - - -
Culture and recreation - - - -
Health and welfare - - - -
Capital outlay - - - -
Debt service
Principal 142,378 142,378 142,378 -
Interest 23,717 23,717 23,717 -
Total expenditures 166,095 166,095 166,095 -
Excess (deficiency) of revenues over expenditures (166,095) (166,095) (165,591) 504
Other financing sources (uses)
Designated cash (budgeted increase in cash)95,123 95,123 - (95,123)
Transfers in 70,972 70,972 70,972 -
Transfers out - - - -
Total other financing sources (uses)166,095 166,095 70,972 (95,123)
Net change in fund balance - - (94,619) (94,619)
Fund balance - beginning of year - - 97,270 97,270
Fund balance - end of year -$ -$ 2,651$ 2,651$
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, 2014
Budget (GAAP Basis) and Actual
Statement of Revenues, Expenditures and Changes in Fund Balance
98
Statement B-20
Variances
Actual
Favorable
(Unfavorable)
Original Final (GAAP Basis)Final to Actual
Revenues
Taxes
Property taxes -$ -$ -$ -$
Gross receipts - - - -
Gasoline and motor vehicle - - - -
Other - - - -
Intergovernmental income
Federal operating grants - - - -
Federal capital grants - - - -
State operating grants - - - -
State capital grants - - - -
Charges for services - - - -
Licenses and fees - - - -
Investment income (loss)- - - -
Miscellaneous - - - -
Total revenues - - - -
Expenditures
Current
General government - - - -
Public safety - - - -
Public works - - - -
Culture and recreation - - - -
Health and welfare - - - -
Capital outlay - - - -
Debt service
Principal 18,000 18,000 18,000 -
Interest - - - -
Total expenditures 18,000 18,000 18,000 -
Excess (deficiency) of revenues over expenditures (18,000) (18,000) (18,000) -
Other financing sources (uses)
Designated cash (budgeted increase in cash)- - - -
Transfers in 18,000 18,000 18,000 -
Transfers out - - - -
Total other financing sources (uses)18,000 18,000 18,000 -
Net change in fund balance - - - -
Fund balance - beginning of year - - - -
Fund balance - end of year -$ -$ -$ -$
Budgeted Amounts
The accompanying notes are an integral part of these financial statements
STATE OF NEW MEXICO
Town of Taos
Camino Rael Building Debt Service Fund
Statement of Revenues, Expenditures and Changes in Fund Balance
Budget (GAAP Basis) and Actual
For the Year Ended June 30, 2014
99
Statement B-21
Variances
Actual
Favorable
(Unfavorable)
Original Final (GAAP Basis)Final to Actual
Revenues
Taxes
Property taxes -$ -$ -$ -$
Gross receipts - - - -
Gasoline and motor vehicle - - - -
Other - - - -
Intergovernmental income
Federal operating grants - - - -
Federal capital grants - - - -
State operating grants - - - -
State capital grants - - - -
Charges for services - - - -
Licenses and fees - - - -
Investment income (loss)- - 163 163
Miscellaneous - - - -
Total revenues - - 163 163
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 - - 163 163
Other financing sources (uses)
Designated cash (budgeted increase in cash)- - - -
Transfers in - - - -
Transfers out - - - -
Total other financing sources (uses)- - - -
Net change in fund balance - - 163 163
Fund balance - beginning of year - - 169,862 169,862
Fund balance - end of year -$ -$ 170,025$ 170,025$
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, 2014
Budget (GAAP Basis) and Actual
100
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 50,000 50,000 - (50,000)
Charges for services - - 1,333 1,333
Licenses and fees - - - -
Investment income (loss)- - - -
Miscellaneous - - - -
Total revenues 50,000 50,000 1,333 (48,667)
Expenditures
Current
General government - - - -
Public safety - - - -
Public works - - - -
Culture and recreation - - - -
Health and welfare - - - -
Capital outlay 453,762 457,262 201,300 255,962
Debt service
Principal - - - -
Interest - - - -
Total expenditures 453,762 457,262 201,300 255,962
Excess (deficiency) of revenues over expenditures (403,762) (407,262) (199,967) 207,295
Other financing sources (uses)
Designated cash (budgeted increase in cash)245,962 249,462 - (249,462)
Transfers in 157,800 157,800 157,800 -
Transfers out - - - -
Total other financing sources (uses)403,762 407,262 157,800 (249,462)
Net change in fund balance - - (42,167) (42,167)
Fund balance - beginning of year - - 261,707 261,707
Fund balance - end of year -$ -$ 219,540$ 219,540$
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, 2014
Budget (GAAP Basis) and Actual
Statement of Revenues, Expenditures and Changes in Fund Balance
101
Statement B-23
Variances
Actual
Favorable
(Unfavorable)
Original Final (GAAP Basis)Final to Actual
Revenues
Taxes
Property taxes -$ -$ -$ -$
Gross receipts 675,779 687,782 704,111 16,329
Gasoline and motor vehicle - - - -
Other - - - -
Intergovernmental income
Federal operating grants - - - -
Federal capital grants - - - -
State operating grants 108,967 8,967 - (8,967)
State capital grants 233,853 233,853 55,711 (178,142)
Charges for services - - - -
Licenses and fees - - - -
Investment income (loss)- - 510 510
Miscellaneous - - - -
Total revenues 1,018,599 930,602 760,332 (170,270)
Expenditures
Current
General government - - - -
Public safety - - - -
Public works - - - -
Culture and recreation - - - -
Health and welfare - - - -
Capital outlay 950,637 808,708 263,356 545,352
Debt service -
Principal - - - -
Interest - - - -
Total expenditures 950,637 808,708 263,356 545,352
Excess (deficiency) of revenues over expenditures 67,962 121,894 496,976 375,082
Other financing sources (uses)
Designated cash (budgeted increase in cash)357,002 531,630 - (531,630)
Transfers in 28,136 46,469 46,468 (1)
Transfers out (453,100) (699,993) (699,994) (1)
Total other financing sources (uses)(67,962) (121,894) (653,526) (531,632)
Net change in fund balance - - (156,550) (156,550)
Fund balance - beginning of year - - 705,947 705,947
Fund balance - end of year -$ -$ 549,397$ 549,397$
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, 2014
Budget (GAAP Basis) and Actual
Statement of Revenues, Expenditures and Changes in Fund Balance
102
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 - - - -
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 145,000 145,000 139,618 5,382
Debt service
Principal - - - -
Interest - - - -
Total expenditures 145,000 145,000 139,618 5,382
Excess (deficiency) of revenues over expenditures (145,000) (145,000) (139,618) 5,382
Other financing sources (uses)
Designated cash (budgeted increase in cash)145,000 145,000 - (145,000)
Transfers in - - - -
Transfers out - - - -
Total other financing sources (uses)145,000 145,000 - (145,000)
Net change in fund balance - - (139,618) (139,618)
Fund balance - beginning of year - - 224,426 224,426
Fund balance - end of year -$ -$ 84,808$ 84,808$
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, 2014
Budget (GAAP Basis) and Actual
Statement of Revenues, Expenditures and Changes in Fund Balance
103
Statement B-25
Variances
Actual
Favorable
(Unfavorable)
Original Final (GAAP Basis)Final to Actual
Revenues
Taxes
Property taxes -$ -$ -$ -$
Gross receipts - - - -
Gasoline and motor vehicle - - - -
Other - - - -
Intergovernmental income
Federal operating grants - - - -
Federal capital grants - - - -
State operating grants - - - -
State capital grants 50,000 50,000 - (50,000)
Charges for services - - - -
Licenses and fees - - - -
Investment income (loss)2,000 2,000 527 (1,473)
Miscellaneous - - 4,000 4,000
Total revenues 52,000 52,000 4,527 (47,473)
Expenditures
Current
General government - - - -
Public safety - - - -
Public works 158,994 158,994 141,999 16,995
Culture and recreation - - - -
Health and welfare - - - -
Capital outlay - - - -
Debt service
Principal - - - -
Interest - - - -
Total expenditures 158,994 158,994 141,999 16,995
Excess (deficiency) of revenues over expenditures (106,994) (106,994) (137,472) (30,478)
Other financing sources (uses)
Designated cash (budgeted increase in cash)106,994 106,994 - (106,994)
Transfers in - - - -
Transfers out - - - -
Total other financing sources (uses)106,994 106,994 - (106,994)
Net change in fund balance - - (137,472) (137,472)
Fund balance - beginning of year - - 597,656 597,656
Fund balance - end of year -$ -$ 460,184$ 460,184$
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, 2014
Budget (GAAP Basis) and Actual
Statement of Revenues, Expenditures and Changes in Fund Balance
104
Statement B-26
Variances
Actual
Favorable
(Unfavorable)
Original Final (GAAP Basis)Final to Actual
Revenues
Taxes
Property taxes -$ -$ -$ -$
Gross receipts - - - -
Gasoline and motor vehicle - - - -
Other - - - -
Intergovernmental income
Federal operating grants - - - -
Federal capital grants 1,000,000 1,000,000 - (1,000,000)
State operating grants - - - -
State capital grants 514,302 1,150,510 - (1,150,510)
Charges for services - - - -
Licenses and fees - - - -
Investment income (loss)2,000 2,000 796 (1,204)
Miscellaneous - - - -
Total revenues 1,516,302 2,152,510 796 (2,151,714)
Expenditures
Current
General government - - - -
Public safety - - - -
Public works - - - -
Culture and recreation - - - -
Health and welfare - - - -
Capital outlay 3,246,087 4,133,921 765,687 3,368,234
Debt service
Principal - - - -
Interest - - - -
Total expenditures 3,246,087 4,133,921 765,687 3,368,234
Excess (deficiency) of revenues over expenditures (1,729,785) (1,981,411) (764,891) 1,216,520
Other financing sources (uses)
Designated cash (budgeted increase in cash)1,504,888 1,545,808 - (1,545,808)
Transfers in 224,897 435,603 228,976 (206,627)
Transfers out - - - -
Total other financing sources (uses)1,729,785 1,981,411 228,976 (1,752,435)
Net change in fund balance - - (535,915) (535,915)
Fund balance - beginning of year - - 1,589,991 1,589,991
Fund balance - end of year -$ -$ 1,054,076$ 1,054,076$
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, 2014
Budget (GAAP Basis) and Actual
Statement of Revenues, Expenditures and Changes in Fund Balance
105
Statement B-27
Variances
Actual
Favorable
(Unfavorable)
Original Final (GAAP Basis)Final to Actual
Revenues
Taxes
Property taxes -$ -$ -$ -$
Gross receipts - - - -
Gasoline and motor vehicle - - - -
Other - - - -
Intergovernmental income
Federal operating grants - - - -
Federal capital grants 8,562,205 8,562,205 2,066,562 (6,495,643)
State operating grants - - - -
State capital grants 551,125 687,237 183,881 (503,356)
Charges for services - - - -
Licenses and fees - - - -
Investment income (loss)- - - -
Miscellaneous - - - -
Total revenues 9,113,330 9,249,442 2,250,443 (6,998,999)
Expenditures
Current
General government - - - -
Public safety - - - -
Public works 50,000 50,000 - 50,000
Culture and recreation - - - -
Health and welfare - - - -
Capital outlay 9,531,955 9,806,702 2,366,293 7,440,409
Debt service
Principal - - - -
Interest - - - -
Total expenditures 9,581,955 9,856,702 2,366,293 7,490,409
Excess (deficiency) of revenues over expenditures (468,625) (607,260) (115,850) 491,410
Other financing sources (uses)
Designated cash (budgeted increase in cash)66,320 67,038 - (67,038)
Transfers in 402,305 540,222 540,222 -
Transfers out - - - -
Total other financing sources (uses)468,625 607,260 540,222 (67,038)
Net change in fund balance - - 424,372 424,372
Fund balance - beginning of year - - 67,083 67,083
Fund balance - end of year -$ -$ 491,455$ 491,455$
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, 2014
Budget (GAAP Basis) and Actual
Statement of Revenues, Expenditures and Changes in Fund Balance
106
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 3,035,656$ 3,035,656$ 2,784,761$ (250,895)$
Total operating revenues 3,035,656 3,035,656 2,784,761 (250,895)
Operating expenses
Personnel services 796,695 747,305 721,496 25,809
Contractual services 1,347,528 1,410,605 1,151,553 259,052
Supplies 186,729 178,879 134,946 43,933
Maintenance and materials 82,175 83,845 74,213 9,632
Utilities 400,958 407,380 412,653 (5,273)
Equipment 3,068,005 3,294,045 (2) 3,294,047
Depreciation - - 1,621,713 (1,621,713)
Miscellaneous 419,839 419,837 200,279 219,558
Total operating expenses 6,301,929 6,541,896 4,316,851 2,225,045
Operating income (loss) (3,266,273) (3,506,240) (1,532,090) 1,974,150
Non-operating revenues (expenses)
Gross receipts taxes 450,520 450,520 504,349 53,829
Interest expense (135,126) (135,316) (130,953) 4,363
Interest income 4,093 4,093 3,825 (268)
Miscellaneous income - - 3,648 3,648
Total non-operating revenues
(expenses)319,487 319,297 380,869 61,572
Income (loss) before transfers and grants (2,946,786) (3,186,943) (1,151,221) 2,035,722
Transfers - 39,307 (1) (39,308)
State and federal capital grants - - - -
Change in net position (2,946,786)$ (3,147,636)$ (1,151,222) 1,996,414$
Total net position, beginning of year 26,259,488
Total net position, end of year 25,108,266$
The accompanying notes are an integral part of these financial statements
For the Year Ended June 30, 2014
Town of Taos
Statement of Revenues, Expenses and Changes in Net Position
Water and Sewer Proprietary Fund
107
STATE OF NEW MEXICO Statement B-29
Budget (GAAP Basis) and Actual
Variances
Favorable
Budget Amounts Actual (Unfavorable)
Original Final (GAAP Basis)Final to Actual
Operating revenues
Charges for services 1,269,734$ 1,269,734$ 1,275,688$ 5,954$
Total operating revenues 1,269,734 1,269,734 1,275,688 5,954
Operating expenses
Personnel services 138,244 134,547 129,038 5,509
Contractual services 848,945 854,835 798,341 56,494
Supplies 8,031 10,509 8,438 2,071
Maintenance and materials 77,010 76,726 72,518 4,208
Utilities 245,520 246,412 228,266 18,146
Equipment - - - -
Depreciation - - 56,571 (56,571)
Miscellaneous 1,075 68,893 68,643 250
Total operating expenses 1,318,825 1,391,922 1,361,815 30,107
Operating income (loss) (49,091) (122,188) (86,127) 36,061
Non-operating revenues (expenses)
Gross receipts taxes - - - -
Interest expense - - - -
Interest income - - - -
Miscellaneous income 21,161 21,161 16,191 (4,970)
Total non-operating revenues
(expenses)21,161 21,161 16,191 (4,970)
Income (loss) before transfers and grants (27,930) (101,027) (69,936) 31,091
Transfers - - - -
State and federal capital grants - - - -
Change in net position (27,930)$ (101,027)$ (69,936) 31,091$
Total net position, beginning of year 1,534,895
Total net position, end of year 1,464,959$
The accompanying notes are an integral part of these financial statements
For the Year Ended June 30, 2014
Town of Taos
Statement of Revenues, Expenses and Changes in Net Position
Solid Waste Proprietary Fund
108
STATE OF NEW MEXICO Statement B-30
Budget (GAAP Basis) and Actual
Variances
Favorable
Budget Amounts Actual (Unfavorable)
Original Final (GAAP Basis)Final to Actual
Operating revenues
Charges for services 967,500$ 967,500$ 1,066,765$ 99,265$
Total operating revenues 967,500 967,500 1,066,765 99,265
Operating expenses
Personnel services 254,144 257,530 258,086 (556)
Contractual services 307,106 254,415 249,620 4,795
Supplies 6,400 6,302 6,301 1
Maintenance and materials 115,261 122,407 121,956 451
Utilities 7,484 7,484 7,385 99
Depreciation - - 180,382 (180,382)
Miscellaneous 228,960 230,198 53,173 177,025
Total operating expenses 919,355 878,336 876,904 1,432
Operating income (loss) 48,145 89,164 189,861 100,697
Non-operating revenues (expenses)
Gross receipts taxes - - - -
Interest expense (17,761) (17,761) (16,909) 852
Interest income - 45,980 1,132 (44,848)
Miscellaneous income - - 509 509
Total non-operating revenues
(expenses)(17,761) 28,219 (15,268) (43,487)
Income (loss) before transfers and grants 30,384 117,383 174,593 57,210
State capital grants - - - -
Transfers - (45,980) 1 45,981
Change in net position 30,384$ 71,403$ 174,594 103,191$
Total net position, beginning of year 2,221,804
Total net position, end of year 2,396,398$
The accompanying notes are an integral part of these financial statements
For the Year Ended June 30, 2014
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 249,175$ 209,368$ 248,899$ 209,644$
Judicial Bond Fund Municipal Court Checking 1,542 - - 1,542
Utility Construction Fund Checking 39,530 - - 39,530
Water & Sewer System Income Fund Checking 4,616,106 127,053 26,753 4,716,406
Certificate of Deposit - Investment CD 170,500 - - 170,500
Total US Bank 5,076,853 336,421 275,652 5,137,621
Centinel Bank
General Fund Checking 2,809,546 9,166 183,322 2,635,390
Water/Wastewater Improvement Fund Checking 1,007,703 - 941,404 66,299
Payroll Clearing Checking 6 - - 6
1994 GRT Revenue Bond Acquisition Fund Checking 56,381 - - 56,381
HUD Account - Domestic Violence Shelter Checking 1 - - 1
ACH Transfer Account Checking 109,539 - 109,387 152
Total Centinel Bank 3,983,176 9,166 1,234,113 2,758,229
Bank of Albuquerque- Investments
2004 Taos Regional Landfill Revenue Bond
Reserve
U.S. Treasury
Mutual Fund 61,951 - - 61,951
2008A Taos Regional Landfill Debt Service U.S. Treasury
Mutual Fund 100,359 - - 100,359
2008 Gross Receipts Tax Revenue Bond Reserve U.S. Treasury
Mutual Fund 170,025 - - 170,025
1999 Gasoline Tax Acquisition U.S. Treasury
Mutual Fund 834,384 - - 834,384
2010a Phase I Multi Phased Recreation Park U.S. Treasury
Mutual Fund 181,424 - - 181,424
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 3,322,046 - - 3,322,046
New Mexico Finance Authority - Investments
2007 NMFA Land Purchase State Treasurer
Debt Service 49 - - 49
2004 Taos Regional Landfill Revenue Bond
Reserve
State Treasurer
Debt Service 684 - - 684
2008A Taos Regional Landfill Debt Service State Treasurer
Debt Service 843 - - 843
2010 Phase I Multi-phased Rec. Park State Treasurer
Debt Service 1,750 - - 1,750
1999 Gasoline Tax Acquisition State Treasurer
Debt Service 846 - - 846
Total New Mexico Finance Authority 4,172 - - 4,172
Total 12,386,247$345,587$ 1,509,765$ 11,222,068
New Mexico State Treasurer Local Government Investment Pool 4,057,679
Reserve Contingency Fund 5,392
Add: petty cash 1,650
Total deposits and investments 15,286,789$
See independent auditors' report
June 30, 2014
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 5,847,444$
Investments - Exhibit A-1 4,173,571
Restricted cash and cash equivalents - Exhibit A-1 4,002,007
Restricted investments- Exhibit A-1 1,195,042
Fiduciary funds cash and investments - Exhibit E-1 68,725
Total deposits and investments 15,286,789$
June 30, 2014
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, 2014 of Safekeeper
US Bank
FNMA 8/1/2025 31410K7E8 815,552$ Federal Home Loan Bank, Dallas, TX
FNMA 11/1/2025 31419KG25 2,716,763 Federal Home Loan Bank, Dallas, TX
FNMA 1/1/2026 3138A35S2 832,413 Federal Home Loan Bank, Dallas, TX
FNMA 10/1/2025 31419GCY8 699,470 Federal Home Loan Bank, Dallas, TX
5,064,198
Centinel Bank
Lea County School 1/15/2017 521513BR1 179,984 *Independent Bankers Bank, Dallas TX
Espanola School 9/1/2025 29662RBA5 150,000 *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
Las Cruces SD GO 8/1/2021 517534PE7 100,000 *Independent Bankers Bank, Dallas TX
FNMA 1612 1/1/2017 3138E5Y1 340,420 Independent Bankers Bank, Dallas TX
FHLB 12/14/2018 3133XSUN6 862,672 Independent Bankers Bank, Dallas TX
1,913,073
Total Pledged Collateral 6,977,271$
See independent auditors' report
June 30, 2014
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, 2013 Additions Deletions June 30, 2014
Assets
Cash 9,985$ $ 16,647 $ 17,907 8,725$
Investments 60,000 - - 60,000
Total assets 69,985$ 16,647$ 17,907$ 68,725$
Liabilities
Deposits payable 69,342$ -$ 1,000$ 68,342$
Due to other entities 643 - 260 383
Total liabilities 69,985$ -$ 1,260$ 68,725$
STATE OF NEW MEXICO
See independent auditors' report
For the Year Ended June 30, 2014
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, 2014
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 $340,000
per year
$330,950 Town of Taos
50 years from November 2, 2000 Dependent on
landfill expenses
None to date Town of Taos
117
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118
COMPLIANCE SECTION
119
2700 San Pedro NE Albuquerque NM 87110 www.acgsw.com T: 505.883.2727 F: 505.884.6719
REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON
COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS
PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
INDEPENDENT AUDITORS’ REPORT
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, 2014, and the related notes to the financial statements, which collectively comprise the Town’s basic financial
statements, and the combining and individual funds and related budgetary comparisons of the Town, presented as supplementary
information, and have issued our report thereon dated November 24, 2014.
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 2010-001 (FS 2010-01), FS
2012-001 (FS 2012-01), and FS 2014-001 .
120
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Town's financial statements are free from material misstatement, we
performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance
with which could have a direct and material effect on the determination of financial statement amounts. However, providing an
opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an
opinion. The results of our tests disclosed instances of noncompliance or other matters that 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 2014-002, and FS 2014-003.
The Town’s Responses to Findings
The Town’s responses to the finding identified in our audit are described in the accompanying schedule of findings and
questioned costs. The Town’s responses were not subjected to the auditing procedures applied in the audit of the financial
statements and, accordingly, we express no opinion on them.
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the result of that
testing, and not to provide an opinion on the effectiveness of the entity’s internal control over compliance. This report is an
integral part of an audit performed in accordance with Government Auditing Standards in considering the Town’s internal control
and compliance. Accordingly, this communication is not suitable for any other purpose.
Accounting & Consulting Group, LLP
Albuquerque, New Mexico
November 24, 2014
121
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122
FEDERAL FINANCIAL ASSISTANCE
123
2700 San Pedro NE Albuquerque NM 87110 www.acgsw.com T: 505.883.2727 F: 505.884.6719
REPORT ON COMPLIANCE FOR EACH MAJOR FEDERAL PROGRAM; REPORT ON INTERNAL CONTROL
OVER COMPLIANCE
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, 2014. 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, 2014.
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
November 24, 2014
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, 2014
CFDA
Number Federal Grant Number
Federal
Expenditures
Department of Public Safety
16.523 11-690-12421 $ 131,756
16.738 12-JAG-WC-TAOS2- 2,353
Edward Byrne Memorial- Wrongful Conviction Grant 16.738 2012-SS-TO-0011 7,475
Total U.S. Department of Justice 141,584
14.235 NM0038B6B010901 150,000
Total U.S. Department of Housing & Urban Development 150,000
Federal Aviation Administration (FAA)
Snow Removal Equipment Building 20.106 * 3-35-0041-026-2012 319,812
EIS 20.106 * 3-35-0041-025-2012 -
Runway 12/30 Design 20.106 * 3-35-0041-028-2012 839,243
Memorandum of Agreement Overflight Stipulators 20.106 * 3-35-0041-027-2012 906,300
Federal Transit - Capital Investment Grants 20.500 NM-03-0041 42,838
Total U.S. Department of Transportation 2,108,193
$ 2,399,777
* Denotes Major Federal Financial Assistance Program
See accompanying notes to the schedule of expenditures of federal awards
Total Federal Financial Assistance
U.S. Department of Transportation
Federal Grantor or Pass-Through Grantor/ Program Title
U.S. Department of Justice Passed Through the State of New Mexico,
Taos County Juvenile Justice
U.S. Department of Housing & Urban Development Passed Through
State of New Mexico, Department of Finance & Administration
Domestic Violence Shelter
Edward Byrnes Memorial- Justice Assistance Grant
See independent auditors' report
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, 2014
Notes to Schedule of Expenditures of Federal Awards
3. Loan amounts
Reconciliation of Schedule of Expenditures of Federal Awards to Financial Statements:
2,399,777$
22,280,499
24,680,276$ Total expenditures
The accompanying Schedule of Expenditures of Federal Awards (Schedule)includes the federal grant activity of the Town of Taos
and is presented on the modified accrual basis of accounting,which is the same basis as was used to prepare the governmental fund
financial statements,except for the proprietary funds.The information in this Schedule is presented in accordance with the
requirements of OMB Circular A-133, Audits of States, Local Governments and Non-Profit Organizations .
The Town did not provide any federal awards to subrecipients during the year.
Total expenditures funded by other sources
2. Subrecipients
Total federal awards expended per Schedule of Expenditures of Federal Awards
The Town did not have any loan amounts outstanding at June 30, 2014.
1. Basis of Presentation
127
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128
STATE OF NEW MEXICO Schedule VI
Town of Taos Page 1 of 5
Schedule of Findings and Questioned Costs
June 30, 2014
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
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?Yes
129
STATE OF NEW MEXICO Schedule VI
Town of Taos Page 2 of 5
Schedule of Findings and Questioned Costs
June 30, 2014
Section II –Prior Year Audit Findings
Prior Year Audit Findings
Financial Statement Findings
FS 2010-001 (FS 2010-01)Design Deficiencies in Internal Control
over Financial Reporting (Significant Deficiency)Repeated and Modified
FS 2012-001 (FS 2012-01)Weakness in Design Related to Internal Control
over Receipts (Significant Deficiency)Repeated
FS 2013-001 Campaign Contribution Form (Other Matter)Resolved
FS 2013-002 Small Purchases (Other Matter)Resolved
FS 2013-003 Safekeeping of Seized Property Pending
Disposition (Other Matter)Resolved
FS 2013-004 Annual Inventory (Other Matter)Resolved
Section III –Financial Statement Findings and Questioned Costs
FS 2010-001 (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: The Committee of Sponsoring Organizations (COSO) internal control integrated framework consists of five
critical elements that must be present in carrying out the achievement objectives of an organization. These elements
are known as the control environment, risk assessment, control activities, information and communication, and
mo nitoring.
Effect: The Town is at risk of employees taking leave in excess of amounts earned or employees may not receive all
the time earned. Also, ma y lead to employees of the Town becoming disgruntled and cause inappropriate actions
towards the Town.
Cause: The Town has not fully implemented its designed process to timely review the financial information related
to leave for employees.
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 auditors’ recommendations. At this time we have attained 100%
compliance with the properly review of time sheet for salaried employees. It took some time to completely address
this finding, wi th the change in Management and with the assistance of the Finance Audit Committee to review and
recommend policy and procedures.
130
STATE OF NEW MEXICO Schedule VI
Town of Taos Page 3 of 5
Schedule of Findings and Questioned Costs
June 30, 2014
FS 2012-001 (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 mo ney 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’ recommendations. After further review of Town’s
landfill we have determined that a new automatic software package that ties into the weigh scale and cash register
will meet the requirements of internal control in regards to the cash collection processes. The funds were made
available during FY 2014-2015 and are proceeding with the purchase of this software package.
FS 2014-001 Consumable Inventory Controls (Significant Deficiency)
Condition: During walk-through procedures performed due to risk assessment procedures it was noted that the Town
has purchased bulk inventory to have on-hand in the Public Works department in the amount of $17,785.25 and the
Town has not implemented any controls over inventory. We also noted there is no procedure in place in regards to
consuming inventory on hand or tracking inventory in any system.
Criteria: Sections 6-5-1 through 6-5-6 NMSA, 1978 require internal accounting controls designed to prevent
accounting errors and violations of state and federal laws and rules related to financial matters.
Effect: Without proper inventory controls, the Town cannot verify what inventory they have on hand or is available
for use. In addition, inventory may be misappropriated without management knowledge.
Cause: The Town in prior years has not purchased large amounts of inventory to maintain on-hand. Due to the
timing of the inventory being purchased at year end the Town did not have time to fully implement controls for
inventory and inventory procedures.
Auditors’ Recommendations: We recommend the Town develop and implement policies and procedures designed to
prevent or detect possible misstatements in its inventory as well as train individuals in the responsible departments
the proper maintenance and handling of inventory.
Agency’s Response: Management agrees with the auditor’s recommendations. We are currently working on a
standardized workbook for all Departments’ to track and record inventory consisting of large amounts. These
inventories will be reviewed on a quarterly basis by the Fixed Assets Clerk/Finance Assistant for internal accounting
controls.
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STATE OF NEW MEXICO Schedule VI
Town of Taos Page 4 of 5
Schedule of Findings and Questioned Costs
June 30, 2014
FS 2014-002 — Compliance over Travel and Per Diem – (Other Matter)
Condition: During our testwork of travel and per diem, we noted in 1 instance out of 15 that the supporting
documentation was missing and thus could not conclude the trip appeared reasonable and appropriate. In addition, in
1 out of 15 instances we noted that the Town reimbursed for taxi costs in the amount of $16.80 and the time of the
taxi trip did not line up with the itinerary of the conference.
Criteria: According to NMAC 2.42.2.9(A) upon written request of public officer or employee where overnight
lodging is required, the public officer or employee will be reimbursed. (2) Actual reimbursement for meals: Actual
expenses for meals are limited by Section 10-8-4(K)(2) NMSA 1978 to a maximum of $30.00 for instate travel for a
24-hour period. (3) Receipts required- The public officer or employee must submit receipts for the actual meal and
lodging expenses incurred.
Effect: Without proper reimbursement the Town could be at risk of scrutiny of employees and public monies could be
improperly expended.
Cause: Error occurred due to human error when the travel form was completed. Proper in-depth review was not
performed on all travel reimbursements.
Auditors’ Recommendation: We recommend that the Town follow all internal polices and state law that has been
implemented in regards to travel and per diem.
Agency’s Response: Management agrees with the auditor’s recommendations. In February of 2014 we started
meeting with the Finance Audit Committee in going over the audit findings from the previous year along with
policies that the Finance Department recommended for review, which the Travel Policy was one of them. We have
made immediate changes to the policy and will be taking a new Policy to the Town Council within the next couple of
months.
FS 2014-003 — Social Security Administration – (Other Matter)
Condition: During our testwork over employees who are determined to be exempt from social security it was noted
that in 2 of 5 instances tested the employees were missing SSA 1945 forms acknowledging earnings were not covered
under social security.
Criteria: Per State Audit Rule Section 2.2.2.10 H (2)(d) the Social Security Administration requires all state and local
government employers to disclose to all new employees the fact that their job is not covered by social security if they
were hired for a position not covered by social security. These employees must sign a statement that they are aware
of a possible reduction in their future Social Security benefit entitlement.
Effect: Without proper SSA 1945 form completed and maintained the Town could be subject to future liabilities in
regards to social security.
Cause: The forms could not be located as the employees began employment with the Town at one position and are
currently working in a different department.
Auditors’ Recommendation: We recommend that the Town receive completed SSA 1945 forms from all employees
subject to this and maintain these in their personnel file for inspection.
Agency’s Response: Management agrees with the auditor’s recommendations. The Human Resources Department
has completed SSA 1945 for the 2 employees that were missing and placed them in the respective personnel files.
They have also reviewed all Police and Fire employees’ personnel files to ensure SSA forms were completed and
filed. They have also updated their internal checklist for future new and intradepartmental transfers requiring SSA
1945 forms.
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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, 2014
FINDINGS –FEDERAL AWARDS
None
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STATE OF NEW MEXICO
Town of Taos
Other Disclosures
June 30, 2014
OTHER DISCLOSURES
Exit Conference
An exit conference was held on November 24, 2014. In attendance were the following:
Representing the Town of Taos:
Daniel Barrone Mayor
Frederick A.Peralta Auditee Committee Chairman/Councilor
Richard Bellis Town Manager
Floyd W. Lopez Assistant Town Manager
Marietta Fambro Finance Director
Representing Accounting & Consulting Group, LLP:
Ray Roberts, CPA Partner
Auditor Prepared Financial Statements
Accounting and Consulting Group, LLP prepared the GAAP-basis financial statements and footnotes of the Town of T aos from
the original books and records provided to them by the management of the Town. T he responsibility for the financial statements
remains with the Town.
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