2008 Audit ReportSTATE OF NEW MEXICO
TOWN OF TAOS
AUDIT REPORT
JUNE 30, 2008
STATE OF NEW MEXICO
TOWN OF TAOS
JUNE 30, 2008
TABLE OF CONTENTS
Page
INTRODUCTORY SECTION Number.
OfficialRoster................................................................................................................. 1
FINANCIAL STATEMENTS SECTION
Independent Auditors' Report .......................................................................................... 2-3
Basic Financial Statements:
Government -wide Financial Statements
Statementof Net Assets............................................................................................ 4-5
Statementof Activities.............................................................................................. 6-7
Fund Financial Statements
Balance Sheet -Governmental Funds.......................................................................... 8
Statement of Revenues, Expenditures and Changes in Fund Balances -
GovernmentalFunds............................................................................................... 9
Reconciliation of the Statement of Revenues, Expenditures and Changes
in Fund Balances- Governmental Funds to the Statement of Activities ................. 10
Statement of Revenues, Expenditures and Changes in Fund Balances
Budget and Actual
GeneralFund.............................................................................................................. 11-14
Statement of Net Assets- Proprietary Funds............................................................ 15
Statement of Revenues, Expenses and Change in Fund Net Assets -
ProprietaryFunds.............................................................................. 16
Statement of Cash Flows- Proprietary Funds ............................................. 17
Statement of Fiduciary Assets and Liabilities.......................................................... 18
Notes to the Financial Statements.......................................................... 19-42
SUPPLEMENTARY INFORMATION
Nonmajor Governmental Funds.......................................................... 43-45
Combining and Individual Fund Financial Statements:
Combining Balance Sheet- Nonmajor Governmental Funds ......................... 46-51
Combining Statement of Revenues, Expenditures and Changes in
FundBalances......................................................................................................... 52-57
I
10
STATE OF NEW MEXICO
TOWN OF TAOS
JUNE 30, 2008
TABLE OF CONTENTS
(continued)
Statement of Revenues, Expenditures and Changes in Fund Balances -
Budget and Actual:
FireProtection Fund.....................................................................................................
RecreationFund............................................................................................................
Lodger's Tax Fund........................................................................................................
Local Government Corrections Fund............................................................................
Law Enforcement Protection Fund...............................................................................
CivicCenter Fund.........................................................................................................
CommunityGrants Fund...............................................................................................
Public Transportation Fund...........................................................................................
Municipal Road Gasoline Tax Fund.............................................................................
'/a Cent Municipal Gross Receipts Tax Fund................................................................
Central Communications Fund.....................................................................................
1989/1999 Gross Receipts Tax Revenue Bond Reserve ..............................................
1.993 Receipts Tax Revenue..........................................................................................
2007 NMFA Land Purchase........................................................................................
1995 Gross Receipts Tax R.B. Retirement..................................................................
2008 Gross Receipts Tax Revenue Bond Retirement ..................................................
1995 Gross Receipts Tax Acquisition Reserve.............................................................
1999 Gas Tax R.B. Retirement.....................................................................................
2001 Gross Receipts Tax R.B. Retirement..................................................................
2001 Gross Receipts Tax R.B. Reserve........................................................................
Capital Projects Fund — Individual Fund......................................................................
AirportConstruction Fund............................................................................................
1994 GRT Revenue Bond Acquisition........................................................................
Domestic Violence Shelter Fund.................................................................................
Facilities Improvements Fund......................................................................................
VehicleReplacement Fund..........................................................................................
1999 Gas Construction Fund.......................................................................................
Statement of Revenues, Expenditures and Changes in Fund Net Assets —
Budget and Actual:
Water and Sewer Fund......................................................................................
Landfill.............................................................................................................
SolidWaste......................................................................................................
M
58
59
60
61
62
63
64
65
66
67
68
69
70
71
72
73
74
75
76
77
78
79
80
81
82
83
84
85
86
87
STATE OF NEW MEXICO
TOWN OF TAOS
JUNE 30, 2008
TABLE OF CONTENTS
(continued)
Schedule of Changes in Assets and Liabilities - Agency Funds ..................................
Federal Compliance and Findings:
1:1:3
Schedule of Expenditures of Federal Awards ................................................ 89
Independent Auditors' Report on Internal Control over Financial Reporting
and on Compliance and Other Matters Based on an Audit of Financial
Statements Performed in Accordance with Governmental Auditing Standards
....................................................................................................................................... 90-91
Independent Auditors' Report On Compliance with Requirements
Applicable To Each Major Program and Internal Control_
Over Compliance In Accordance With OMB Circular A-133
............................................................................................................................... 92-93
Schedule of Findings and Questioned Costs .................................................. 94-96
ExitConference..................................................................................:............................ 97
iii
s
INTRODUCTORY SECTION
Name
Bobby F. Duran
Rudy Abeyta
Eugene Sanchez
Darren Cordova
Amy Quintana
Daniel Miera
Marietta Fambro
STATE OF NEW MEXICO
TOWN OF TAOS
JUNE 30, 2008
OFFICAL ROSTER
ADMINISTRATIVE OFFICIALS
1
Title
Mayor
Council Member
Council Member
Council Member
Council Member
Town Manager
Finance Director
s
FINANCIAL STATEMENTS SECTION
M4$11
PATTILLO, BROWN & HILL,L.L.P.
CERTIFIED PUBLIC ACCOUNTANTS 0 BUSINESS CONSULTANTS
INDEPENDENT AUDITORS' REPORT
Bobby F. Duran, Mayor
Town Council
Town of Taos
Taos, New Mexico
and
Hector H. Balderas
New Mexico State Auditor
Santa Fe, New Mexico
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 of the General Fund of the Town of Taos, New Mexico as of and for the year ended June 30,
2008, which collectively comprise the Town's basic financial statements as listed in the table of contents.
We have also audited the financial statements of each of the Town's nonmajor governmental funds and the
budgetary comparisons presented as supplementary information in the accompanying combining and
individual fund financial statements, as of and for the year ended June 30, 2008 as listed in the table of
contents. These financial statements are the responsibility of the Town of Taos, New Mexico management.
Our responsibility is to express opinions on these financial statements based on our audit.
We conducted our audit in accordance with auditing standards generally accepted in the United
States of America and the standards applicable to financial audits contained in Government Auditing
Standards, issued by the Comptroller General of the United States. Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the financial statements are free of
material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for our opinions.
In our opinion, the financial statements referred to above present fairly, in all material respects,
the 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, New Mexico as of June 30, 2008, and
the respective changes in financial position and cash flows, where applicable, thereof and the respective
budgetary comparison for the General Fund for the year then ended in conformity 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 respects, the respective financial position of each
nonrnajor governmental fund, of the Town of Taos, New Mexico as of June 30, 2008 and the respective
changes in financial position and cash flows where applicable and the respective budgetary comparisons for
the capital projects fund and each nonmajor governmental fund and enterprise funds, for the year ended in
conformity with accounting principles generally accepted in the United States of America.
4301THE 25 WAY NE ■ ALBUQUERQUE, NM 871090 (505) 266-5904 ■ FAX: (505) 268-6444 ■ www.pbhcpa.com
AFFILIATE OFFICES: BROWNSVILLE, TX (956) 544-7778 ■ HILLSBORO, TX (254) 582-2583
TEMPLE, TX (254) 791-3460 ■ WACO, TX (254) 772-4901
2
In accordance with Government Auditing Standards, we have also issued our reports dated
November 25, 2008, on our consideration of the Town of Taos, New Mexico'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 these reports 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. These reports are an integral
part of an audit performed in accordance with Government Auditing Standards and should be considered in
assessing the results of our audit.
The Town of Taos has not presented the Management's Discussion and Analysis that accounting
principles generally accepted in the United States has determined is necessary to supplement, although not a
required part of, the basic financial statements.
Our audit was conducted for the purpose of forming opinions on the basic financial statements
and the combining and individual fund financial statements and budgetary comparisons. The accompanying
Schedule of Expenditures of Federal Awards as required by U.S. Office of Management and Budget
Circular A-133, Audits of State and Local Governments and Non -Profit Organizations, and is not a required
part of the financial statements. The additional schedules listed as "other supplemental information" in the
table of contents are presented for purposes of additional analysis and are not a required part of the financial
statements. Such information has been subjected to the auditing procedures applied in the audit of the basis
financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic
financial statements taken as a whole.
rl
tC7ly. LlTc�c�
Pattillo, Brown, &Hill, L.L.P.
Albuquerque, New Mexico
November 25, 2008
�/ � x9xv,
4301THE 25 WAY NE ■ ALBUQUERQUE, NM 871090 (505) 266-5904 ■ FAX: (505) 268-6444 ■ www.pbhcpa.com
AFFILIATE OFFICES: BROWNSVILLE, TX (956) 544-7778 ■ HILLSBORO, TX (254) 582-2583
TEMPLE, TX (254) 791-3460 ■ WACO, TX (254) 7724901
3
STATE OF NEW MEXICO
TOWN OF TAOS
STATEMENT OF NET ASSETS
JUNE 30, 2008
Total assets $ 63,351,222 $ 27,313,100 $ 90,664,322
U
Governmental
Business -type
Activities
Activities
Total
ASSETS
Current assets:
Cash and cash equivalents
$ 762,373
$ 3,781,494
$ 4,543,867
Investments
12,557,978
1,612,526
14,170,504
Receivables (net of allowances for
wicollectible)
2,070,555
518,631
2,589,186
Interfund balances
14,706
97,000
111,706
Total current assets
15,405,612
6,009,651
21,415,263
Other assets:
Restricted cash
-
1,327,165
1,327,165 -
Totalodterassets
-
1,327,165
1,327,165
Noncurrent assets:
Other assets - Bond issue cost
179,586
-
179.586
Capital assets not being depreciated
Land
5,943,036
262,422
6,205,458
Construction in progress
2,553,198
3,383,782
5,936,980
Capital assets, being depreciated
86,067,763
27,945,592
114,013,355
Less: accumulated depreciation
( 46,797,973)
( 11,615,512)
( 58.413,485)
Totalcapital assets
47,945,610
19,976,284
67,921,894
Total mncurrent assets
47,945,610
19,976,284
67,921,894
Total assets $ 63,351,222 $ 27,313,100 $ 90,664,322
U
LIABILITIES
Current liabilities:
Bank overdraft
Accounts payable
Accrued liabilities
Court bonds
Interfund balances
Accrued interest payable
Current portion long term debt
Total current liabilities
Noncurrent liabilities:
Meyer deposits
Compensated absences
Landfill closure and post closing liability
Bond premium
Bonds and contracts payable less current portion
Total noncurrent liabilities
Total liabilities
NET ASSETS
Invested in capital assets,
net of related debt
Restricted for:
Capital projects
Swimming pool
Debt service
Unrestricted
Total net assets
Governmental
Business -type
Activities
Activities
Total.
225,552
-
225,552
1,050,700
578,436
1,629,136
270,570
39,802
310,372
7,363
-
7,363
-
111.,706
111,706
48,788
-
48,788
879,333
232,983
1,112,316
2,482,306
962,927
3,445,233
-
226,705
226,705
784,354
66,043
850,397
-
235,575
235,575
68,874
-
68,874
7,829,172
4,297,406
12,1.26,578
8,682,400
4,825,729
13,508,129
1.1,164,706
5,788,656
16.953,362
39,168,231 15,445,895 54,614,126
8,994,602 - 8,994,602
823,636 721,595 1,545,231
3,200,047 5,356,954 8,557,001
$ 52,186,516 $ 21,524,444 $ 73,710,960
The notes to the financial statements are an integral part of this statement.
5
STATE OF NEW MEXICO
TOWN OF TAOS
STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED JUNE 30, 2008
General revenues:
Taxes:
Property taxes, levied for general purposes
State shared
Sales
Lodgers
Franchise
Investment earnings
Miscellaneous
Total general revenues, specialitems, and transfers
Change in net assets
Net assets, beginning
Net assets, ending
The notes to the financial statements are an integral part of this statement,
Program Revenues
Operating
Capital
Charges for
Grants and
Grants and
Functions/Programs
Expenses
Services
Contributions
Contributions
Primary Government:
Govemmental activities:
General. government
$ 6,864,848
$ 530,263
$ 374,580
$ 684,050
Public safety
4,163,607
515,702
402,237
-
Highway and streets
1,405.271
-
237,796
102,968
Culture and recreation
5,363,217
325,029
130,300
314,371
Interest and fees on long-term debt
227,941
-
-
-
Total governmental activities
18,024,884
1,370,994
1,144,913
1,101,389
Business -type activities:
Water and sewer
3,216,742
2,433,403
-
1,255,068
Solid waste
1,049,768
1,184,509
-
-
Landfill
949,724
1,252,531
Total business -type activities
5,216,234
4,870,443
-
1,255,068
Total primary govemnment
$ 23,241,118
$ 6,241,437
$ 1,144,913
$ 2,356,457
General revenues:
Taxes:
Property taxes, levied for general purposes
State shared
Sales
Lodgers
Franchise
Investment earnings
Miscellaneous
Total general revenues, specialitems, and transfers
Change in net assets
Net assets, beginning
Net assets, ending
The notes to the financial statements are an integral part of this statement,
Net (Expense) Revenue and
Changes in Net Assets
Primary Government
Governmental Business -type
Activities Activibes Total
$(
5:275,955)
$ -
$(
5,275,955)
(
3,245,668)
-
(
3,245,668)
(
1,064,507)
-
(
1,064,507)
(
4,593,517)
-
(
4,593,517)
(
227,941)
-
(
227,941)
(
14,407,588)
(
14,407,588)
-
471,729
471,729
-
134,741
134,741
302,807
302,807
-
909,277
909,277
(
14,407,588)
909,277
(
13,498,31.1)
733,520
-
733,520
83,916
-
83,916
9,993,470
462,538
10,456,008
947,1.26
-
947,126
522,144
-
522,144
425,029
174,969
599,998
862,425
-
862,425
13,567,630
637,507
14,205,137
(
839,958)
1,546,784
706,826
53,026,474
19,977,660
73,004,134
$
52,186,516
$ 21,524,444
$
73,710,960
i
I
ASSETS
Cash
Investments
Accounts receivable
Due from other funds
Total assets
LIABILITIES AND FUND BALANCES
Liabilities:
Bank overdrafts
Deferred revenue
Accounts payable
Accrued liabilities
Court bonds payable
Total liabilities
Fund balances:
Reserved for:
Special revenue -swimming pool
Debt service
Capital projects
Unreserved, undesignated reported in:
General fund
Capital projects funds
Special revenue funds
Total fund balances
Total liabilities and fund balances
STATE OF NEW MEXICO
TOWN OF TAOS
BALANCESHEET
GOVERNMENTAL FUNDS
JUNE 30, 2008
General
Capital
Fund
Projects #51
Funds
Funds
$ 395,685
$ 166,688
1,580,428
7,467,342
845,412
607,036
14,706
2,070,555
$ 2,836,231
$ 8,241,066
26,740 -
195,542 698,791
223,287 -
7,363 -
452,932 698,791
7,542,275
2,383,299
G,J6J,ZYY /,34Z,Z/3
Nonmajor
Total
Governmental
Governmental
Funds
Funds
$ 200,000
$ 762,373
3,510,208
12,557,978
618,107
2,070,555
-
14,706
$ 4,328,315
$ 15,405,612
$ 225,552 $ 225,552
141,109 167,849
156,367 1,050,700
47,283 270,570
- 7,363
570,311 1,722,034
823,636 823,636
1,452,327 8,994,602
- 2,383,299
350,119 350,119
1,131,922 1,131,922
3,758,004 13,683,578
$ 2,836,231 $ 8,241,066 $ 4,328,315
Long term liabilities, including loans payable and
compensated absences are not due and payable in the current
period and therefore are not reported in the funds. 9,430,935)
Capital assets used in governmental activities are not
financial resources and, therefore, are not reported in the
funds. 47,766,024
Recognition of deferred revenue is reflected on the full
accrual basis in the statement of net assets. 167,849
Net assets of governmental. activities $ 52,186,516
The notes to the financial statements are an integral part of this statement.
8
STATE OF NEW MEXICO
TOWN OF TAOS
STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
FOR THE YEAR ENDED JUNE 30, 2008
Capital Nonmajor Total
Projects Governmental Governmental
General Fund #51 Funds Funds
REVENUES
Taxes:
Gross receipts tax
Property taxes
Lodgers' tax
Other state shared taxes
Franchise taxes
Licenses and permits
Intergovernmental
Fines and forfeitures
Charges for services
State shared gross receipts taxes
State shared gasoline taxes
Miscellaneous
Total revenues
EXPENDITURES
Current operations:
General government
Public safety
Highways and streets
Culture and recreation
Debt service:
Principal
Interest & fiscal charges
Capital outlay
Total expenditures
Excess (deficiency) of revenues
over expenditures
Other financing sources (uses):
Debt proceeds
Debt issuance premium
Transfers in (out)
Total other financing
sources (uses)
Net change in fund balances
Fund balances, beginning of year
Fund balances, end of year
$ 3,702,112
706,780
64,943
510,461
179,923
45,792
177,057
342,916
4,532,873
66,211
385,554
10,714,622
4,391,748
2,890,623
972,512
2,151,151
5,634
10,411,668
302,954
( 1,411.,041)
( 1,411,041)
( 1,108,087)
3,491,386
$ 2,383,299
$ 693,780 $ 925,075
947,126
92,392
897,828 1,631,467
- 75,534
75,886
80,202
1,671,810
421,223
184,717
2,862,618
3,468,558
198,873
3,946,353
809,361
788,383
1,777,957
696,495
205,444
732,527
5,010,167
5,320,967
706,780
947,126
157,335
510,461
179,923
2,575,087
252,591
418,802
4,532,873
66,211
664,629
16,332,785
5,622,332
3,679,006
972,512
3,929,108
696,495
390,161
3,600,779
18,890,393
( 1,796,748) ( 1,063,814) ( 2,557,608)
6,395,000
70,842
479,453
6,945,295
5,148,547
2,393,728
$ 7,542,275
The notes to the financial statements are an integral part of this statement.
9
931,588
931,588
( 132,226)
3,890,230
$ 3,758,004
6,395,000
70,842
6,465,842
3,908,234
9,775,344
$ 13,683,578
STATE OF NEW MEXICO
TOWN OF TAOS
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, 2008
Amounts reported for govenunental activities in the Statement of Activities are different
because:
Net change in fund balances - total governmental funis
Governmental funds report capital outlays as expenditures. However, in the statement of
activities the cost of those assets are allocated over their estimated useful lives and reported as
depreciation expense. 71tis is the amount by which depreciation expense exceeded capital
outlay.
The issuance of long-term debt (e.g., bonds, leases) provides current financial resources to
governmental funds, while the repayment of the principal of long-term debt consumes the
current financial resources of governmental. funds. Neither transaction, however, has any effect
on net assets. Also, govermnental funds report tire effect of issuance costs, premiums,
discounts, and similar items when debt is first issued, whereas these amounts are deferred and
amoritzed in the statement of activities. Tlris amount is the net effect of these differences in the
treatment of long-term debt and related items.
Recognition of accounts receivable and deferred revenues is reflected on the full accrual basis
within. the statement of activities. The Town has determined that the receivables are not
available, therefore, the revenues have been deferred within the governmental funds.
Donations of capital assets increase net assets in the statement of activities, but do not appear
in the governmental funds because they are not financial resources.
Some expenses reported in. the statement of activities do not require the use of current financial.
resources and, therefore, are not reported as expenditures in the governmental funds.
Change in net assets of governmental activities
The notes to the financial statements are an integral part of this statement.
10
3,908,234
56,133
( 5,584,630)
26,740
825,401
( 71,836)
$( 839,958)
STATE OF NEW MEXICO
TOWN OF TAOS
GENERAL FUND
STATEMENT OF REVENUES, EXPENDITURES AND CHANGE IN FUND BALANCES
BUDGET (Non -GAAP Basis) and ACTUAL on BUDGETARY BASIS
FOR THE YEAR ENDED JUNE 30, 2008
REVENUES
Taxes:
Gross receipts tax
Property taxes
Other state shared taxes
Franchise tax
Licenses and permits
Intergovernmental
Fines and forfeitures
Charges for services
State shared gross receipts taxes
State shared gasoline tax
Miscellaneous
Total revenues
EXPENDITURES
General Government:
Town council
Personal services
Operating expenses
Capital outlay
Total town council
Executive
Personal services
Operating expenses
Capital outlay
Total executive
Finance
Personal services
Operating expenses
Capital outlay
Total finance
Planning and development
Personal services
Operating expenses
Capital outlay
Total planning and. development
Variance with
Budgeted Amounts Final Budget
Actual Positive
Original Final Amounts (Negative)
3,909,683
3,913,184
3,690,106
579,405
579,405
629,696
63,621
63,621
71,044
409,769
409,769
504,858
352,847
352,846
179,923
35,000
35,000
45,792
166,486
166,487
177,057
365,913
328,821
342,916
4,822,670
4,822,670
4,583,679
65,498
65,498
65,498
472,725
509,818
385,554
11,243,617 11,247,119 10,676,123
203,807 204,705
511,281 509,746
5,000 5,000
720,088 719,451
198,032
407,050
$( 223,078)
50,291
7,423
95,089
( 172,923)
10,792
10,570
14,095
( 238,991)
( 124,264)
( 570,996)"'
6,673
102,696
5,000
605,082 114,369
203,807
724,340
713,804
10,536
511,281
256,820
140,145
116,675
5,000
5,000
-
5,000
720,088
986,160
853,949
132,211
433,150
458,269
454,113
4,156
432,005
418,549
371,997
46,552
865,155
876,818
826,110
50,708
526,210
565,455
520,745
44,710
233,382
233,384
1.95,314
38,070
759,592
798,839
716,059
82,780
The notes to the financial statements are an integral part of this statement.
(continued)
ll
Y
STATE OF NEW MEXICO
TOWN OF TAOS
GENERALFUND
STATEMENT OF REVENUES, EXPENDITURES AND CHANGE IN FUND BALANCES
BUDGET (Non -GAAP Basis) and ACTUAL on BUDGETARY BASIS
(continued)
FOR THE YEAR ENDED JUNE 30, 2008
Special services
Personal services
391,268
320,079
307,231
Variance with
Operating expenses
Budgeted Amounts
261,720
Final Budget
90,627
Capital outlay
2,695
Actual
Positive
-
Original
Final
Amounts
(Negative)
Communications bureau
Total general government
Building and maintenance
5,580,167
5,037,452
Personal services
296,251
276,079
247,740
28,339
Operating expenses
208,819
218,271
216,709
1,562
Capital outlay
5,150
-
-
-
Total communications bureau
510,220
494,350
464,449
29,901
Fleet maintenance
6,545
Personal services
134,854
134,441
133,101
1,340
Operating expenses
86,369
103,612
98,514
5,098
Total fleet maintenance
221,223
238,053
231,615
6,438
Special services
Personal services
391,268
320,079
307,231
12,848
Operating expenses
236,844
261,720
171,093
90,627
Capital outlay
2,695
-
-
-
Total special services
630,807
581,799
478,324
103,475
Total general government
Building and maintenance
5,580,167
5,037,452
542,715
Personal services
365,340
382,629
378,647
3,982
Capital outlay
2,867
-
-
_
Operating expenses
148,960
143,983
141,420
2,563
Total building and maintenance
517,167
526,612
520,067
6,545
Airport
Personal services 95,033 92,730 92,578 152
Operating expenses 46,785 52,375 52,313 62
Capital outlay - - - _
Total airport 141,818 145,105 144,891 214
Judicial
Personal services
165,504
166,920
166,750
170
Operating expenses
48,023
46,060
30,156
15,904
Capital outlay
_
-
_
_
Total judicial
213,527
212,980
196,906
16,074
Total general government
5,299,685
5,580,167
5,037,452
542,715
The notes to the financial statements are an integral part of this statement.
(continued)
12
s
STATE OF NEW MEXICO
TOWN OF TAOS
GENERAL FUND
STATEMENT OF REVENUES, EXPENDITURES AND CHANGE IN FUND BALANCES
BUDGET (Non -GAAP Basis) and ACTUAL on BUDGETARY BASIS
(continued)
FOR THE YEAR ENDED JUNE 30, 2008
The notes to the financial statements are an integral part of this statement.
(continued)
13
Variance with
Budgeted Amounts
Final Budget
Actual
Positive
Original
Final
Amounts
(Negative)
Public safety
Police
Personal services
1,829,370
1,824,461
1,772,643
51,818
Operating expenses
299,793
299,793
278,258
21,535
Total police
2,129,163
2,124,254
2,050,901
73,353
We
Personal services
472,978
474,714
467,811
6,903
Operating expenses
180,845
177,845
175,005
2,840
Capital outlay
-
-
_
_
Total fire
653,823
652,559
642,816
9,743
Total public safety
2,782,986
2,776,813
2,693,717
83,096
Highways and streets
Personal services
620,540
609,580
609,538
42
Operating expenses
418,621
402,537
362,974
39,563
Capital outlay
-
5,179
5,179
-
Total highways and streets
1,039,161
1.,017,296
977,691
39,605
Culture and recreation
Library
Personal services
439,314
438,277
428,773
9,504
Operating expenses
138,616
145,300
119,482
25,818
Capital outlay
_
-
_
_
Total library
577,930
583,577
548,255
35,322
Recreation/aquatics
Personal services
880,171
817,380
794,944
22,436
Operating expenses
414,228
415,000
307,344
107,656
Capital outlay
_
2,695
455
2,240
Total recreation/aquatics
1,294,399
1,235,075
1,102,743
132,332
Total culture and recreation
1,872,329
1,818,652
1,650,998
167,654
Excess (deficiency) of revenues
over expenditures
249,456
54,191
316,265
262,074
The notes to the financial statements are an integral part of this statement.
(continued)
13
STATE OF NEW MEXICO
TOWN OF TAOS
GENERAL FUND
STATEMENT OF REVENUES, EXPENDITURES AND CHANGE IN FUND BALANCES
BUDGET (Non -GAAP Basis) and ACTUAL on BUDGETARY BASIS
(continued)
FOR THE YEAR ENDED JUNE 30, 2008
OTHER FINANCING SOURCES (USES)
Transfers out
Total other financing sources (uses)
Net change in fund balances
Beginning cash and investments balance
Variance with
Budgeted Amounts Final Budget
Actual Positive
Original Final Amounts (Negative)
( 1,643,469) L 1,848,276) ( 1,411,041) 437,235
( 1,643,469) L_1,848,276) ( 1,411,041) 437,235
$( 1,394,013) $( 1.,794,085) $( 1,094,776) $ 699,309
$ 3,013,873 $ 3,013,873
RECONCILIATION TO GAAP BASIS
Net increase (decrease) in fund balances budget basis
Change in payables
Change in receivables
Change in deferred revenue
Net change in fund balances GAAP basis
$( 1,094,776)
( 51,810)
11,759
26,740
$( 1,108,087)
The notes to the financial statements are an integral part of this statement.
14
STATE OF NEW MEXICO
TOWN OF TAOS
STATEMENT OF NET ASSETS
PROPRIETARY FUNDS
JUNE 30, 2008
Restricted assets:
Customers' meter deposits
Water and
-
Solid
Total
Debt payments and reserves
Sewer
Landfill
Waste
Proprietary
Landfill improvements, closures and solid waste issues
Fund
Fund
Fund
Funds
ASSETS
540,733
786,432
1,549,993
1,3279165
Current assets:
3,640,223
1,960,037
188,396 5,788,656
Cash and cash equivalents
$ 1,725,907
$ 1,297,621 $
757,966
$ 3,781,494
Investments
1,463,426
-
149,100
1,612,526
Accounts receivable (net of allowance for uncollectible)
354,738
32,926
130,967
518,631
Due from other funds
-
97,000
-
97,000
Total current assets
3,544,071
1,427,547
1,038,033
6,009,651
Restricted assets:
Customers' meter deposits
226,705
-
-
226,705
Debt payments and reserves
314,028
407,567
-
721,595
Landfill improvements, closures and solid waste issues
-
378,865
-
378,865
Total restricted assets
540,733
786,432
1,549,993
1,3279165
Capital assets:
3,640,223
1,960,037
188,396 5,788,656
Non -depreciable assets:
Land
-
262,422
-
262,422
Construction in progress
2,670,851
712,931
-
3,383,782
Depreciable assets:
Property, plant and equipment
25,255,656
2,273,422
416,514
27,945,592
Less accumulated depreciation
(10,687,136)
( 581,351)
( 347,025)
(11,615,512)
Total capital assets
17,239,371
2,667,424
69,489
1.9,976,284
Total assets
21,324,175
4,881,403
1,107,522
27,31.3,100
LIABILITIES
Current Liabilities:
Accounts payable
256,191
238,873
83,372
578,436
Accrued liabilities
23,804
9,712
6,286
39,802
Due to other funds
4,672
10,034
97,000
111,706
Current portion long-term debt
81,558
151,425
-
232,983
Total current liabilities
366,225
410,044
186,658
962,927
Long term liabilities:
Utility meter deposits
226,705
-
- 226,705
Compensated absences
39,630
24,675
1,738 66,043
Landfill closure and post closing liability
-
235,575
- 235,575
Bonds and loans payable less current portion
3,007,663
1,289,743
- 4,297,406
Total long-term liabilities
3,273,998
1,549,993
1,738 4,825,729
Total liabilities
3,640,223
1,960,037
188,396 5,788,656
Net Assets
Invested in capital assets, net of related debt
14,150,150
1,226,256
69,489 15,445,895
Restricted for debt service
314,028
407,567
- 721,595
Unrestricted
3,219,774
1,287,543
849,637 5,356,954
Total net assets
$ 17,683,952
$ 2,921,366 $
919,126 $ 21,524,444
The notes to the financial statements are an integral part of this statement.
15
STATE OF NEW MEXICO
TOWN OF TAOS
STATEMENT OF REVENUES, EXPENSES AND CHANGE IN FUND NET ASSETS
PROPRIETARY FUNDS
FOR THE YEAR ENDED JUNE 30, 2008
Operating Revenues:
Charges for services
Other revenue
Total operating revenues
Operating Expenses:
Personnel services
Other
Total operating expenses
Operating income (loss)
Non-operating revenues (expenses):
Interest expense
Interest income
Sales tax
Federal grants
Total non-operating
revenues (expenses)
Change in net assets
Net assets, beginning of year
Net assets, end of year
Water and
Sewer Landfill
Fund Fund
$ 2,179,652 $ 1,252,531
253,751 -
2,433,403 1,252,531
Solid
Total
Waste
Proprietary
Fund
Funds
$ 1,083,386 $ 4,515,569
101,123 354,874
1,184,509 4,870,443
595,748
304,158
74,714
974,620
2,464,521
632,176
975,054
4,071,751
3,060,269
936,334
1,049,768
5,046,371
( 626,866)
316,197
134,741
( 175,928)
( 156,473)
( 13,390)
-
( 169,863)
137,181
37,788
174,969
462,538
-
462,538
1,255,068
1,255,068
1,698,314
24,398
-
1,722,712
1,071,448
340,595
134,741
1,546,784
16,612,504
2,580,771
784,385
19,977,660
$ 17,683,952 $ 2,921,366 $ 919,126 $ 21,524,444
The notes to the financial statements are an integral part of this statement.
16
STATE OF NEW MEXICO
TOWN OF TAOS
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
FOR THE YEAR ENDED JUNE 30, 2008
The notes to the financial statements are an integral part of this statement.
17
10
Water and
Solid
Total
Sewer
Landfill
Waste
Proprietary
Fund
Fund
Fund
Funds
Cash flows from operating activities
Cash received from customers
$ 2,779,383
$ 1,244,056
$ 1,191,435
$ 5,214,874
Cash payments to employees for services
(611,787)
(299,637)
(74,919)
(986,343)
Cash payments to suppliers for goods and services
1,849,371
328,419
1,076,437
(3,254,227)
Net cash provided by operating activities
318,225
616,000
40,079
974,304
Cash flows from noncapital financing activities
Transfers from other funds
-
3,387
-
3,387
Transfers to other funds
(6,355)
(568)
(6,923)
Net cash provided by capital and related activities
(6,355)
3,387
(56 8)
3,536
Cash flows from capital and related financing activities
(Acquisition) disposition of capital assets
(2,005,248)
(760,255)
-
(2,765,503)
Grant proceeds
1,255,068
-
1,255,068
Receipt of tax
462,538
-
-
462,538
Debt proceeds
-
1,000,000
-
1,000,000
Principal paid on debt
(79,088)
(67,274)
-
(146,362)
Interest paid on debt1(
56,473)
13,390
(169,863)
Net cash provided by capital financing activities
(523,203)
159,081
( 364,122)
Cash flows from investing activities
Interest on investments
137,181
37,788
174,969
Net cash provided by capital and related activities
137,181
37,788
-
174,969
Net increase (decrease) in cash and cash equivalents
(74,152)
816,256
39,511
781,615
Cash and equivalents beginning of year
3,804,218
1,267,797
867,555
5,939,570
Cash and equivalents end of year
$ 3,730,066
$ 2,084,053
$ 907,066
$ 6,721,185
RECONCILIATION OF OPERATING INCOME TO NET CASH
PROVIDED (USED) BY OPERATING ACTIVITIES:
Operating income
$( 626,866)
$ 316,197
$ 134,741
$( 175,928)
Adjustments to reconcile operating income to net cash
provided (used) in operating activities:
Depreciation expense
861,579
113,829
4,005
979,413
Provision for bad debt
37,698
-
-
37,698
Decrease (increase) in customer receivable
292,537
( 8,475)
6,926
290,988
Increase (decrease) in accounts payable
( 246,429)
189,928
( 105,388)
(161,889)
Increase (decrease) in accrued liabilities
( 1,673)
419
( 860)
(2,114)
Increase (decrease) in customer deposits
15,745
-
-
15,745
Increase (decrease) in compensated absences
( 1.4,366)
4,102
655
(9,609)
Net cash provided by operating activities
$ 318,225
$ 616,000
$ 40,079
$ 974,304
The notes to the financial statements are an integral part of this statement.
17
10
STATE OF NEW MEXICO
TOWN OF TAOS
STATEMENT OF FIDUCIARY ASSETS AND LIABILITIES
AGENCYFUNDS
JUNE 30, 2008
ASSETS
Cash $ 1,950
Investments 61,500
Total assets $ 63,450 -
LIABILITIES
Deposits payable $ 23,700
Accounts receivable
Due to outside entities 39,750
Total liabilities $ 63,450
The notes to the financial statements are an integral part of this statement.
18
STATE OF NEW MEXICO
TOWN OF TAOS
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2008
L SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The Town of Taos (Town) was incorporated in 1934. The Town operates under a Mayor Council
form of government and provides the following services as authorized by its charter: public safety
(police and fire), highways and streets, sanitation, health and social services, culture and recreation,
planning and zoning, water service, sewer service and general administrative services
A. Reporting Entity
This summary of significant accounting policies of the Town of Taos is presented to assist in the
understanding of the Town of Taos's financial statements. The financial statements and notes are
the representation of the Town of Taos's management who are 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. The Governmental Accounting Standards Board (GASB) is the accepted
standard-setting body for establishing governmental accounting and financial reporting principles.
The more significant of the government's accounting policies are described below.
In evaluating how to define the government, for financial reporting purposes, management has
considered all potential component units. The decision to include a potential component unit in
the reporting entity was made by applying the criteria set forth in generally accepted accounting
principles (GAAP).
The basic (but not the only) criteria 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, or whether the activity is conducted within the
geographic boundaries of the government and is generally available to 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. Based upon the application of these criteria, the Town
has no component units.
19
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
B. Government -Wide And Fund Financial Statements
The government -wide financial statements (i.e., the statement of net assets 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 revenue,
are reported separately from business -like activities, which rely to a significant extent on fees and
charges for support.
The statement of activities demonstrates the degree to which the direct expenses of a given
function or segment are offset by program revenue. Direct expenses are those that are clearly
identifiable with a specific function or segment. Program revenue includes 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 revenue are reported instead as general revenue.
Separate financial statements are provided for governmental funds and proprietary funds. 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 financial
statements. Revenues are recorded when earned and expenses are recorded when a liability is
incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenue
in the year for which they are levied. Sales, franchise, lodgers', cigarette, gas and other similar
taxes are recognized as revenue when the underlying exchange takes place. 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 revenue to be available if 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, sales taxes, and interest associated with the current fiscal period are
all considered to be susceptible to accrual and so have been recognized as revenue of the current
fiscal period. All other revenue items are considered to be measurable and available only when
cash is received by the Town.
20
I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
C. Measurement Focus. Basis of Accounting and Financial Statement Presentation
(continued)
The Town reports the following major governmental funds:
The General Fund is the Town's primary operating fund. It accounts for all financial
resources of the general government, except those required to be accounted for in
another fund.
The Capital Proiects Fund was created to accumulate revenues and other financing
sources for the purpose of financing general-purpose capital projects.
The Town reports the following major proprietary funds:
The Water and Sewer Fund is used to account for the activities of the Town's water
and sewer operations.
The Landfall 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.
The Solid Waste Fund accounts for the provision of solid waste services to the
residents of the Town and some residents of the County. All activities 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.
Additionally, the Town reports the following fund types:
The Fiduciary Fund accounts for resources held for others. Agency funds are custodial
in nature (assets equal liabilities), do not present results of operations and are accounted
for using the accrual basis of accounting. These funds are used to account for assets that
the Town holds for others in an agency capacity.
Private -sector standards of accounting and financial reporting issued prior to December 1, 1989,
generally are followed in both the government -wide and proprietary fund financial statements to
the extent that those standards do not conflict with or contradict guidance of the Governmental
Accounting Standards Board. Governments also have the option of following subsequent private -
sector guidance for their business -type activities and enterprise funds, subject to this same
limitation. The Town has elected not to follow subsequent private -sector guidance.
As a general rule, the effect of interfund activity has been eliminated from the government -wide
financial statements. Exceptions to this general rule are charges between the Town's water and
sewer function and various other functions of the government. Elimination of these charges would
distort the direct costs and program revenue reported for the various functions concerned.
21
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
C. Measurement Focus, Basis of Accounting and Financial Statement Presentation
(continued)
Amounts reported as program revenues include: 1) charges to customers or applicants for goods,
services, or privileges provided, 2) operating grants and contributions, and 3) capital grants and
contributions, including special assessments. Internally dedicated resources are reported as
general revenues rather than as program revenues. Likewise, general revenue includes all taxes.
Proprietary funds distinguish operating revenues and expenses from nonoperating items.
Operating revenues and expenses generally result from providing services and producing and
delivering goods in connection with a proprietary fund's principal ongoing operations. The
principal operating revenues of the enterprise funds are charges to customers for sales and services.
Operating expenses for the enterprise funds include the cost of sales and services, administrative
expenses, and depreciation on capital assets. All revenue and expenses not meeting this definition
are reported as nonoperating revenue and expenses.
When both restricted and unrestricted resources are available for use, it is the Town's policy to use
restricted resources first, and then unrestricted resources as they are needed.
D. Assets, Liabilities, and Net Assets or Equity
Cash and Investments
Cash and investments include amounts in demand deposits, certificates of deposit and investments
with a maturity date within a year of the date acquired by the Town. Cash in excess of current
requirements is invested in the New Mexico State Treasurer's Local Government Pooled
Investment Fund.
Receivables
Accounts receivable of the enterprise fund represents the amounts due from customer utility
accounts. The governmental funds report taxes and other fees collected at the Town, County and
State level as receivables. All trade and tax receivable are shown net of an allowance for
uncollectible.
Deferred Revenues
Within the governmental funds, revenues must be available in order to be recognized. Revenues
such as real estate taxes that are not available are recorded as deferred revenues and reflected as a
liability with the balance sheet
Restricted Assets
Certain resources of the enterprise funds are set aside for revenue bond and note repayment and
replacement reserves and are classified as restricted assets on the balance sheet because the use of
these monies is limited by applicable bond covenants and loan documents. In addition, customers
meter deposits are classified as restricted assets.
22
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
D. Assets, Liabilities, and Net Assets or Equity (continued)
Capital Assets
Capital assets, which include property, plant, equipment, improvements, and water and sewer
system, are reported in the applicable governmental or business -type activities columns in the
government -wide financial statements. The Town defines capital assets as assets with an initial,
individual cost of more than $5,000 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. Donated
capital assets are recorded at estimated fair market value at the date of donation. The costs of library
books at conversion were determined to be fully depreciated. Current year purchases of library
books do not warrant capitalization. The Town has retroactively reported all major general
infrastructure assets.
Interest incurred during the construction phase of capital assets of business type activities is
included as part of the capitalized value of the asset constructed. During the year the Town did not
capitalize any interest costs.
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.
Property, improvements, equipment, and water and sewer system are depreciated using the
straight-line method over the following useful lives:
Assets
Years
Data Processing Equipment & Software
3-5
Machinery and equipment
5-25
Buildings and improvements
1.0-50
Infrastructure
10-50
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 carryover unused personal leave each year with a cap of 500 hours. On an
appointed day each year employees may sell back -unused personal leave based on the following
schedule.
Hours
200 to 299
300 to 399
400 to 499
500 and above
Percent of
hourly salary
25%
50%
75%
100%
Once the employee achieves the 500 hour cap, they can only sell back a total of 136 hours
annually; the other 80 hours accrued annually must be used by December 31 or forfeited. At
retirement or separation all leave may be sold back at 100% of hourly salary. All personal leave is
accrued when incurred in the government -wide and proprietary fund financial statements.
23
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
D. Assets, Liabilities, and Net Assets or Equity (Continued)
Long-term Obligations
In the government -wide financial statements and proprietary fund types in the fund financial
statements, long-term debt and other long-term obligations are reported as liabilities in the
applicable governmental activities, business -type activities, or proprietary fund type statement of
net assets.
Fond Equity
In the fund financial statements, governmental funds report reservations of fund balance for
amounts that are not available for appropriation or are legally restricted by outside parties for use
for a specific purpose. Designations of fund balance represent tentative management plans that are
subject to change.
Net Assets
Net assets represent the difference between assets and liabilities. Net assets invested in capital
assets, net of related debt consists of capital assets, net of accumulated depreciation, reduced by
the outstanding balances of any borrowing used for the acquisition, construction or improvements
of those assets, and adding back unspent proceeds. Net assets are reported as restricted when there
are limitations imposed on their use either through the enabling legislations adopted by the Town
or through external restrictions imposed by creditors, grantors or laws or regulations of other
governments.
Estimates
The preparation of financial statements, in conformity with generally accepted accounting
principles, requires management to make estimates and assumptions that affect the reported
amounts of assets and liabilities and disclosures of contingent liabilities at the date of the financial
statements and the reported amounts of revenue and expenses during the reporting period. Actual
amounts could differ from those estimates.
24
2. RECONCILIATION OF GOVERNMENT -WIDE AND FUND FINANCIAL STATEMENTS
Explanation of Certain Differences Between the Governmental Fund Balance Sheet and the
Government -wide Statement of Net Assets
The governmental fund balance sheet includes reconciliation between fund balance — total
governmental funds and net assets — governmental activities as reported in the government -wide
statement of net assets. One element of that reconciliation explains, "long-term liabilities, including
loans payable, are not due and payable in the current period and therefore are not reported in the
funds." The details of this difference are as follows:
Bonds, loans and contracts payable -current $ 879,333
Bonds, loans and contracts payable - long-term 7,829,172
Bonds premium (to be amortized over life of bond) 68,874
Less:Bond issue costs (to be amortized over life of bond) (179,586)
Accrued interest payable 48,788
Compensated absences 784,354
Net adjustment to reduce fund balance -
total governmental funds to arrive at -
net assets - governmental activities
$ 9,430,935 -
Explanation of Certain Differences Between the Governmental Fund Statement of Revenue
Expenditures and Changes in Fund Balances and the Government -wide Statement of Activities
The governmental fund statement of revenue, expenditures and changes in fund balances includes a
reconciliation between net changes in fund balances — total governmental fund and changes in net
assets of governmental activities as reported in the government -wide statement of activities. One
element of that reconciliation explains, "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." The details of this difference are as follows:
Capital outlay $ 3,600,779
Depreciation expense (3,544,646)
Net adjustment to decrease net changes in
fund balances total governmental funds
to arrive at changes in net assets of
government activities $ 56,133
Another element of that reconciliation explains that, the issuance of long-term debt provides current
financial resources to governmental funds, while repayment of the principal of long-term debt consumes
the current financial resources of the governmental funds.
Neither transaction, however, has any effect
on net assets. The details of this difference are as follows:
Proceeds from issuance of debt
$ 6,395,000
Proceeds from debt issuance premium
70,842
Bond issue costs
(184,717)
Principal payments of long-term debt
(696,495)
Net adjustment to decrease net changes in
fund balances total governmental funds to
arrive at changes in net assets of
government activities
$ 5,584,630
25
2.
3.
RECONCILIATION OF GOVERNMENT -WIDE AND FUND FINANCIAL STATEMENTS
Explanation of Certain Differences Between the Governmental Fund Statement of Revenue
Expenditures and Changes in Fund Balances and the Government -wide Statement of Activities
(continued)
Another element of that reconciliation states, "The net effect of various miscellaneous transactions
involving capital assets is to decrease net assets." The details of this difference are as follows:
Donations of capital assets increase net
assets on the statement of activities, but
do not appear in the governmental funds
because they are not financial resources. $ 825,401
Net adjustment to increase net changes in
fund balances - total governmental funds to
arrive at changes in net assets of governmental
activities. $ 825,401
Another element of that reconciliation states, "Some expenses reported in the statement of activities
do not require the use of current financial resources and therefore are not reported as expenditures in
governmental funds." The details of this difference are as follows:
Amortization of bond issue costs
$ (5,131)
Amortization of bond premium
1,968
Compensated absences -increase
(49,339)
Accrued interest -increase
(19,334)
Net adjustment to decrease net changes in
fund balances -total governmental funds
to arrive at changes in net assets of
governmental activities
$ (71,836)
STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY
Budgetary Information
The Town follows these procedures in establishing the budgetary data reflected in the financial
statements:
1. Prior to June 1, the Town Finance Director submits to the Town Council a proposed
operating budget for the fiscal year commencing the following July 1. The operating
budget includes proposed expenditures and the means of financing them based on
previous year's history. Public hearings are conducted at the Town Ball to obtain
taxpayer comments. Prior to July 1, the budget is legally enacted through passage of an
resolution.
2. The Town Finance Director is authorized to transfer budgeted amounts between
departments within any fund; however, any revisions that alter the total expenditures of
any funds must be approved by the Town Council and New Mexico Department of
Finance, Division of Local Governments. The original budget that was adopted in July
was amended during the fiscal year in a legally permissible manner.
26
3. STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY (Continued)
Cash, Cash Equivalents
Ki
Balance Add
Less
Balance
Per Bank Deposits
Outstanding
Per Books
First Community Bank
June 30, 2008 In Transit
Checks
Adjustments June 30, 2008
Checking Accounts
Water Sewer System Income Fund
3,392,845 -
18,720
253 3,374,378
Clearing Account
525,685 -
525,685
29 29
Utility Improvement Fund
33,815 -
-
- 33,815
Utility Construction Fund
42,294 -
-
- 42,294
Town Debt Service Fund
338 -
-
- 338
Judicial Bond Fund Municipal Court
7,363 -
-
- 7,363
Certificate of Deposit
170,500
170,500
Certificate of Deposit
250,000 -
-
- 250,000
Certificate of Deposit
195,500
195,500
Certificate of Deposit
499,000 -
-
- 499,000
Certificate of Deposit
235,000 -
-
- 235,000
Centinel Bank
Checking Accounts
General Fund
469,279 -
-
(116) 469,163
Water Waste Water Improvement
384,409 -
46,596
- 337,813
ACH Transfer Account
150 -
-
(50) 100
Payroll Clearing Account
18 -
-
(18) _
1994 GRT RB Acquisition Fund
47,315 -
6,996
- 40,319
HUD Acct -Dom. Violence
I -
-
- 1
Certificate of Deposit
177,500
- 177,500
Total Cash in Banks
$ 6,431,012 $
$ 597,997
$ 98 5,833,113
Funds Held by the New Mexico Finance Authority:
Bank of Albuquerque US Treasury Fund
Accounts
1,209,148
Loan reserve accounts
55,769
State Treasurers Office
12,779,904
Plus Cash on Hand
1,500
Total Cash Per Books
$ 19,879,434
As Reported in Financial Statements:
Equity in Cash:
Cash
$ 4,543,867
Bank overdrafts
(225,552)
Restricted Cash
1,327,165
Investments
14,170,504
Agency Fund
63,450
$ 19,879,434
Ki
3. STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY (Continued)
Budgetary Information (continued)
3. Formal budgetary integration is employed as a management control device during the
year for the General Fund and Special Revenue Funds.
4. Encumbrances are not reported in the budgets or financial statements.
5. The level of classifications detail in which expenditures or expenses may not legally
exceed appropriations for each budget is in fund total. Appropriations lapse at year
end.
6. Budgets for the General and Special Revenue Funds are adopted on a basis not
consistent with generally accepted accounting principles. Throughout the year the
accounting records are maintained on the non -GAAP basis of cash receipts and
disbursements. Accordingly, certain revenues and the related assets are recognized
when paid rather than when the obligation is incurred. The financial statements are
presented on the modified accrual basis of accounting. Budgetary comparisons
presented for General and Special Revenue Funds in this report are on the non -GAAP
budgetary basis and actual (cash basis).
Deposits
The Town invests its funds in accordance with state statues which require that financial institutions
pledge collateral consisting of approved federal or state securities whose market value is equal to at
least 50% of the deposits in excess of FDIC insurance coverage. In accordance with state statutes, the
Town may have deposits only in financial institutions, federal direct obligations, or the New Mexico
State Treasurer's Local Government Pooled Investment Plan. As of June 30, 2008 the Town had
$7,640,160 in financial institutions and $12,779,904 invested in the New Mexico State Treasurer's
Local Government Pooled Investment.
27
3. STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY (Continued)
Pledged Collateral
Deposit
FDIC
Total uninsured public funds
Collateral pledge:
Federal Home Loan Bank of Dallas
8500 Freeport Parkway South,Irving,
TX
First
200,090
Community
Centinel
Bank
Bank
5,352,340
1,078,672
(200,000)
(200,000)
5,152,340
878,672
Total
6,431,012
(400,000)
6,031,012
Federal Home Loan Bank - CUSIP 31339YVV I, 3.38%,7/21108
200,090
-
200,090
Federal Home Loan Bank- CUSIP 31339YVVI, 3.38%,7/21/08
50,023
-
50,023
Federal Home Loan Bank - CUSIP 3133XOU6, 3.75%, 8/15/08
60,087
-
60,087
Federal Home Loan Bank - CUSIP 3133X2BZ7 3.63%,11/14/08
75,277
-
75,277
Federal Home Loan Bank - CUSIP 3133X2BZ7 3.63%, H/14108 14/08
70,259
70,259
Federal Home Loan Bank - CUSIP 31339YB43 3.23%, 1/16/09
350,097
-
350,097
Federal Home Loan Bank - CUSIP 3133X4ZC8, 3.00%, 4/15/09
736,061
736,061
Federal Home Loan Bank - CUSIP 3133X4ZC8, 3.00%, 4/15/09
25,036
-
25,036
Federal Home Loan Bank - CUSIP 3133X8CS9, 3.88%, 8/14/09
767,443
-
767,443
FN22003-64 YA- CUSIP 31393DKWO, 3.00%,525/23
379,363
-
379,363
Texas Independent Bank
350 Phelps Court, Irving, TX
GNMA 780373- CUSIP 36225AMW7,7.00%, 015/23
-
80,020
80,020
GNMA 80342 - CUSIP 36225CLY0, 6.50%,11/20129
-
35,097
35,097
Santa Rosa GO- CUSIP 80275 ICKI, 4.60%,07/01/11
-
109,119
109,119
FHLB -CUSIP M31336TDO, 5.49%,12/22108
-
101,313
101,313
FHLB - CUSIP 3133M8AU8, 5.82%, 03/30/09
-
153,244
153,244
FHLB - CUSIP 3133M8AU8, 5.82%, 03/30/09
-
102,162
102,162
FHLB - CUSIP 3133M8AU8, 5.82%,03/30/09
-
255,406
255,406
FHLB - CUSIP 3133M8AU8, 5.82%, 03/30/09
_
-
FHLB - CUSIP 3133M8AU8, 5.82%, 03/30/09
-
FHLB -CUSIP 3133M86T6, 5.959, 03/16/09
_
-
FHLB - CUSIP 3133M86T6, 5.95%, 03/16/09
_
-
FHLB - CUSIP 3133M86T6, 5.95%, 03/16/09
2,713,736
836,361
3,550,097
Uninsured and uncollaterahzed
$ 2,438,604 $
42,311
$ 2,480,915
IFE
go
3. STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY (continued)
Custodial Credit Risk
Custodial credit risk is the risk that in the event of a bank failure, the Town's deposits may not be
returned. The Town does not have a deposit policy for custodial credit risk. As of June 30, 2008,
$6,031,012 of the Town's bank balance of $6,431,012 was exposed to custodial credit risk as follows:
First
Community Centinel
Bank Bank Total
Uninsured and uncollateralized $ 2,438,604 $ 42,311 $ 2,480,915
Uninsured and collateral held by pledging
bank's trust department in the Bank's name 2,713,736 836,361 3,550,097
Total $ 5,152,340 $ 878,672 $ 6,031,012
Also at June 30, 2008 the Town had $1,209,148 held in AP US Treasury Notes, in connection with
New Mexico Finance Authority loans. One for wastewater project and the other's for the regional
landfill construction. The notes, held by the Bank of Albuquerque Trust Services, in the Bank's
name, exposes the Town to custodial credit risk as noted above. The Town does not have an
investment policy to limit exposure to custodial credit risk or to manage its exposure to fair value
losses due to rising interest rates. At June 30, 2008 these investments were:
Bank of Albuquerque
NMFA (Wastewater) Reserves $ 61,898
NMFA (Landfill) Reserves 137,644
NMFA (Landfill) Construction 7,347
NMFA (Landfill) Reserves 100,226
NMFA (Landfill) Construction 902,033
Total $ 1,209,148
Additionally, two debt service accounts are managed by the New Mexico Finance Authority (NMFA),
on deposit with the State Treasurer's office, in NMFA's name for the benefit of the Town. These
accounts are exposed to custodial credit risk in the amount of $55,769.
Public Project Revolving Fund Program $ 20,758
2001A W&S Reserve 14,842
2004 Taos Landfill Reserve 20,169
Total $ 55,769
Investments
The Town invests excess cash in the State Treasurer Local Government Investment Pool. The Pool's
investments are valued at fair value based on quoted market prices as of the valuation date. The New
Mexico State Treasurer Investment Pool is not SEC registered. Section 6-10-10 I, NMSA 1978,
empowers the State Treasurer, with the advice and consent of the State Board of Finance, to invest
money held in the short-term investment fund in securities that are issued or backed by the United
States Government or by its departments or agencies and are either direct obligations of the United
States Government or agencies sponsored by the United States Government. The Local Government
Investment Pool investments are monitored by the same policies and procedures that apply to all other
state investments. The pool does not have unit shares. Per 6-10-10.1 F, NMSA 1978, at the end of
each month all interest earned is distributed by the State Treasurer to the contribution entities in
amounts directly proportionate to the respective amounts deposited in the fund and the length of time
the amounts were invested. Participation in the fund is voluntary. The Pool is AAAm rated with a 46 -
day weighted average maturity, with an account balance of $12,779,904 as of June 30, 2008.
ggm
4. DETAILED NOTES ON ALL FUNDS
Receivables
Receivables as of year-end for the Town's individual major funds and nonmajor funds in the
aggregate, including the applicable allowances for uncollectible accounts, are as follows:
Receivables:
Customer Accounts
Property Taxes
Franchise Taxes
Gross Receipts Taxes
Gas Taxes
Cigarette Taxes
Lodgers Taxes
Motor Vehicle Fees
Other governments
Gross receivables
Less: allowance for
uncollectible
Net total receivables
Governmental Funds
Proprietary
Funds
Water
Capital
Non-
and
Solid
General
Projects
Major
Sewer
Waste Landfill
Total
-
583,492
147,864 32,926
764,282
103,824
-
- -
103,824
78,010
-
- -
78,010
651,874
54,933
73,244
36,622
- -
816,673
6,252
-
6,058
-
- -
12,310
-
-
1,456
X1,456
-
-
253,248
253,248
5,452
-
-
-
5,452
552,103
284,101
135,222
971,426
845,412
607,036
618,107
755,336
147,864 32,926
3,006,681
-
-
-
400,598
16,897
417,495
845,412 $ 607,036 $ 618,107 $ 354,738 $ 130,967 $ 32,926 $ 2,589,186
Reserved Fund Balance/Restricted Net Assets
Reserved for Capital Projects - Capital Projects Fund, Airport Construction, 1994 GRT Revenue
Bond, Enhanced 911, 1999 Gas Construction - The amounts are to be used for capital project
expenditures as restricted by the grants and bond issues. The restricted amounts of $8,994,602 are
shown as reserved in the government -wide statements.
Restricted for Debt Service - All Debt Service Funds - The reserve of $823,636 is to be used for
future debt service payments and is restricted by the debt agreement. This amount is restricted in the
government -wide statements.
Restricted for Debt Services - Proprietary Funds - The reserve of $721,595 represents the amount to
be used for future debt service payments as required by the debt agreements.
31
4. DETAILED NOTES ON ALL FUNDS (Continued)
Capital Assets
Capital asset activity for the year ended June 30, 2008 was as follows:
Beginning
Balance Increases Decreases
Governmental Activities:
Capital assets, not being depreciated:
Land
Construction in progress
Total capital assets not being depreciated
Capital assets, being depreciated:
Land improvements
Buildings and improvements
Machinery and equipment
Infrastructure
Total capital assets being depreciated
Less accumulated depreciation:
Land improvements
Buildings and improvements
Machinery and equipment
Infrastructure
Total accumulated depreciation
Total capital assets being depreciated, net
Governmental activities capital assets, net
Business -type Activities:
Capital assets, not being depreciated:
Land
Construction in progress
Total capital assets not being depreciated
Capital assets, being depreciated:
Land improvements
Buildings and improvements
Machinery and equipment
Infrastructure
Total capital assets being depreciated
Less accumulated depreciation:
Land improvements
Buildings and improvements
Machinery and equipment
Infrastructure
Total accumulated depreciation
Total capital assets being depreciated, net
Business -type activities capital assets, net
$ 5,117,635
520,846
5,638,481
4,452,972
21,948,369
12,825,749
45,331,546
84,558,636
2,620,383
8,287,067
7,898,516
24,506,661
43,312,627
41,246,009
$ 46,884,490
$ 825,401
2,080,552
2,905,953
37,505
162,749
1,108,420
211,553
1,520,227
R
(59,300)
(59,300)
Ending
Adiustments Balance
$ - $ 5,943,036
(48,200) 2,553,198
(48,200) 8,496,234
- 4,490,477
22,111,118
48,200 13,923,069
- 45,543,099
48,200 86,067,763
243,737 - - 2;864,129
723,931 - - 9,010,998
1,076,307 59,300 - 8,915,523
1,500,671 - - 26,007,332
3,544,646 59,300 - 46,797,973
(2,024,419) - 48,200 39,269,790
$ 881,534 $ - $ - $ 47,766,024
$ 262,422
$ - $
- $ -
$ 262,422
2,293,421
1,466,093
- (375,732)
3,383,782
2,555,843
1,466,093
- (375,732)
3,646,204
97,515
7,380
- -
104,895
3,976,878
-
-
3,976,878
7,990,569
261,002
-
8,251,571
14,205,488
1,031,028
- 375,732
15,612,248
26,270,450
1,299,410
- 375,732
27,945,592
63,516
7,486
- -
71,002
1,399,147
135,410
- -
1,534,557
4,890,146
297,522
-
5,187,668
4,283,290
538,995
- -
4,822,285
10,636099
979,413
- -
11,615,512
15,634,351
319,997
- 375,732
16,330,080
$ 18,190,194
$ 1,786,090 $
- $ 375,732
$ 19,976,284
Governmental activities -capital outlay $3,600,779
Donated land 825,401
Governmental activities total increase to capital assets 4 426 180
32
4. DETAILED NOTES ON ALL FUNDS (Continued)
Capital Assets (continued)
Depreciation expense was charged to functions/programs of the primary
government as follows:
Governmental Activities:
General government
$
1,233,410
Public safety
480,979
Highways and streets
1,401,386
Culture and recreation
428,871
Total Depreciation Expense - Governmental Activities
$
3,544,646
Business -type Activities:
Water and sewer
$
861,579
Solid waste
4,005
Landfill
113,829
Total Depreciation Expense - Business -type Activities
$
979,413
Interfund Receivables, Payables and Transfers
Operating Transfers:
The outstanding balances between funds result mainly from the time lag between the dates the (1)
interfund goods and services are provided or reimbursable expenditures occur, (2) transactions are
recorded in the accounting system, and (3) payments between funds are made. All balances are
expected to be repaid within one year.
Interfund transfers:
Transfers out
General
Transfers in:
Capital Projects $ 479,453
Non -major 931,588
$ 1,411,041
Legally authorized transfers between funds, other than those described above, are recorded as other
financing sources and uses in the respective funds.
Receivable Fund Payable Fund Amount
Landfill
General fund
General fund
Accrued Liabilities:
Accrued liabilities at June 30, 2008
Solid waste fund
Water and sewer fund
Landfill
$ 97,000
4,672
10,034
consisted of the following:
Government Business -Type
Activities Activities
Accrued salaries & payroll liabilities $ 269,133 $ 26,873
Sales tax payable 1,437 12,929
Total $ 270,570 $ 39,802
33
4. DETAILED NOTES ON ALL FUNDS (Continued)
SHORT TERM DEBT:
The Town does not have any short-term debt.
LONG TERM DEBT:
Description of Governmental Activities Bonds
Gross Receipts and Gasoline Tax Revenue Bond.
Gross Receipts Tax Revenue Refunding Bonds dated July 31, 2001, Series 2001 were issued in the
amount of $4,125,000 to provide funds to advance refund the Town's outstanding Series 1993
gross receipts tax refunding and improvement revenue bonds of $1,195,000 and the Town's
outstanding Series 1994 gross receipts tax revenue bonds of $3,110,000. Interest is to be paid
semi-annually on June 1 and December 1. The bonds are secured by the gross receipts tax revenue
of the Town.
Gasoline Tax Revenue Bonds, dated March 1, 1999, Series 1999 in the amount of $1,955,000 for
the purpose of laying off, opening, constructing, reconstructing, resurfacing, maintaining,
acquiring rights of way, repairing and otherwise improving alleys, streets, public roads and bridges
or any combination of the foregoing. Interest to be paid semi-annually April 1 and October 1. The
bonds are secured by and payable from gasoline tax revenues distributed monthly by the State of
New Mexico to the Town.
Gross Receipts Tax Revenue Bonds dated January 30, 2008, Series 2008 were issued in the
amount of $6,395,000 to provide funds for the purpose of constructing and improvements to the
town administration building. Interest is to be paid semi-annually on December 1 and June 1. The
bonds are secured by gross receipts tax revenue of the Town.
Series Issue Maturity Rate Outstanding
Revenue Bonds:
Series 2001 Gross Receipts Tax $ 4,125,000 6/1/2009 3.5% - 5.250/a $ 470,000
Series 1999 Gasoline Tax 1,955,000 10/1/2012 3.6%-4.75% 855,000
Series 2008 Gross Recepts Tax 6,395,000 6/1/2026 4%-5% 6,395,000
$ 7,720,000
Debt Service requirements for the Governmental Activities Bonds are as follows:
Year
June 30
Principal
Interest
2009
$ 775,000
$ 345,028
2010
400,000
288,568
2011
415,000
271,577
2012
435,000
253,872
2013
450,000
235,212
2014-2018
1,570,000
961,275
2019-2023
2,160,000
589,365
2024-2026
1,515,000
128,940
Total
$ 7,720,000
$ 3,073,837
34
4.
DETAILED NOTES ON ALL FUNDS (Continued)
LONG TERM DEBT:
Governmental Activities Loans Payable:
New Mexico Finance Authority Note, dated April 13, 2007 in the amount of $954,000 for the
purpose of acquiring land for a public recreation building. Interest is to be paid semi-annually May
1 and November 1. The loan is secured by the gross receipts tax revenue of the Town.
Original Final Interest
Loans Issue Maturity Rate Outstanding
NMFA- Land Loan $ 954,000 5/1/2017 3.50% 880,505
$ 880,505
Debt Service requirements for the Governmental loan are as follows:
Year Ending
Governmental Activites
June 30
Principal
Interest
2009
$ 86,333
$ 24,673
2010
89,293
22,437
2011
91,860
20,100
2012
94,540
17,656
2013
97,362
15,077
2014-2017
421,117
31,727
$ 108,000
$ 880,505
$ 131,670
Governmental Activities Contracts Payable:
The Town has contracts payable to U.S. Department of Agriculture:
Future scheduled requirements are:
Year
Principal Interest
Total
2009
$ 18,000 $ -
$ 18,000
2010
18,000 -
18,000
2011
18,000 -
18,000
2012
18,000 -
18,000
2013
18,000 -
18,000
2014-2014
18,000 -
18,000
$ 108,000 $ -
$ 108,000
35
9
DETAILED NOTES ON ALL FUNDS (Continued)
LONG TERM DEBT:
Description of Business -Type activities Bonds
Water & Selver and Utility Revenue Bonds:
Water and Sewer Revenue Bonds dated March 16, 1993, Series 1993A were issued in the amount
of $635,600 to provide funds for financing improvements to the Town's water and sewer utility
system. Principal and interest is to be paid annually. The bonds are secured by, and payable
exclusively from, the net revenues of the water and sewer utility system.
Water and Sewer Revenue Bonds dated March 16, 1993, Series 1993B were issued in the amount
of $123,000 to provide funds for financing improvements to the Town's water and sewer utility
system. Principal and interest is to be paid annually. The bonds are secured by, and payable
exclusively from, the net revenues of the water and sewer utility system.
Utility Revenue Bonds dated December 5, 1995, Series 1995A were issued in the amount of .�
$1,315,000 to provide funds for constructing an expansion to the wastewater treatment plant.
Interest is to be paid annually on December 5. The bonds are secured by, and payable exclusively
from, the net revenues of the water and sewer utility system.
Water and Sewer Revenue Bonds dated July 1, 1999, Series 1998A were issued in the amount of
$475,000 to provide fund for improving the sewer plant to enable the Town to recover solid
biowaste. Principal and interest is to be paid annually. The bonds are secured by, and payable
exclusively from, the net revenues of the water and sewer utility system.
Series
Revenue Bonds:
Series 1993A Water & Sewer
Series 1993E Water & Sewer
Series 1995A Utility
Series 1998B Water & Sewer
Original Final Interest
Issue Maturity Rate Outstanding
$ 635,600
3/16/2033
123,000
3/16/2033
1,315,000
12/5/2035
475,000
1/1/2038
36
0.05625
$ 537,600
0.055
105,000
0.0513
1,145,000
0.0475
429,000
$ 2,216,600
I
i
4. DETAILED NOTES ON ALL FUNDS (Continued)
LONG TERM DEBT: (continued)
Business -Type Activities Notes Payable
On May 11, 2001, the Town borrowed $950,391 from the New Mexico Finance Authority for the
purpose of expansion of the existing wastewater transmission lines. Principal and interest at 4.34% is
to be paid annually. The term of the loan is 20 years. The note is secured by, and payable exclusively
from, the net revenues of the water and sewer utility system.
In December 18, 2000, the Town borrowed $250,000 from the Rural Utilities Service for the purpose
of expansion of the water system. Principal and interest at 5.00% is to be paid annually. The term of
the loan is 40 years. The note is secured by, and payable exclusively from, the net revenues of the
water and sewer utility system.
The Town borrowed $1,372,684 from the New Mexico Finance Authority on April 23, 2007 for the
construction and equipping of the Solid Waste Landfill Facility. The 10 -year loan requires semi-
annual interest payments at a rate of 2.399% and annual principal payments. The note is secured by,
and payable exclusively from, the net revenues of the Regional Landfill System.
The Town borrowed $1,000,000 from the New Mexico Finance Authority on April 11, 2008 for the
construction of two new cells for the existing landfill. The 10 -year loan requires semi-annual interest
payments at the rate of 2.911% and annual principal payments. The note is secured by, and payable
exclusively from the revenues of the Regional Landfill System.
Original Final Interest
Loans Issue Maturity Rate Outstandine
Series 2000A Water & Sewer $ 250,000 12/18/2040 5.00% $ 234,000
Taos Regional Landfill 1,372,684 5/1/2014 0.790% - 3.34% 638,621
Series 2001A Water and Sewer 950,391 7/1/2020 4.16% - 5.410% 441,168
Series 2008A PPRF-Landfill 1,000,000 4/11/2008 2.91% 1,000,000
$ 2,313,789
Bonds and Loan Payable
A summary of the terms of revenue bonds and loan outstanding and their corresponding allocations to
the business -type activities at June 30, 2008 follows:
Year Ending
June 30,
2009
2010
2011
2012
2013
2014-2018
2019-2023
2024-2028
2029-2033
2034-2038
2039-2041
Principal
$ 232,983
244,791
251,349
259,353
268,851
1,197,138
516,324
484,000
636,600
393,000
46,000
$ 4,530,389
Interest
$ 200,538
192,118
184,356
176,335
167,627
698,112
488,371
360,516
223,123
68,986
5,050
$ 2,765,132
37
4. DETAILED NOTES ON ALL FUNDS (Continued)
LONG TERM DEBT: (continued)
Changes in Long-term Liabilities
Long-term liability activity for the year ended June 30, 2008, was as follows:
Governmental activities
Revenue Bond
Loan and Contracts Payable
Compensated absences
Governmental activities
long-term liabilities
Business -type activities
Revenue Bonds
Loans Payable
Compensated Absences
Business -type activities
long-term liabilities
Beginning
Balance Additions
$ 1,930,000 $ 6,395,000
1,080,000 -
735,015 1,281,069
Reductions
$ 605,000
91,495
1,231,730
$ 3,745,015 $ 7,676,069 $ 1,928,225
$ 2,252,600
1,424,151
75,652
$ 3,752,403
1,000,000
145,439
$ 1,145,439
Landfill Closure and Post Closure Costs
$ 36,000
110,362
155,048
$ 301,410
Ending Due Within
Balance One Year
$ 7,720,000 $ 775,000
988,505 104,333
784,354 -
$ 9,492,859 $ 879,333
$ 2,216,600 $ 37,000-
2,313,789 195,983
66,043 -
$ 4,596,432 $ 232,983
;a
State and Federal laws regulations require the Town to place a final cover on its landfill site when it
stops accepting waste and to perform certain maintenance and monitoring functions at the site for
thirty years after closure. Although closure and post closure care will be paid only near or after the
date that the landfill stops accepting waste, the Town reports a portion of these closure and post
closure care costs as an operating expense in each period based on landfill capacity used as of each
balance sheet date. The $235,575 reported as landfill closure and post closure care liability at June 30,
2008, represents the cumulative amount reported to date based on management's estimates and on the
area used by the landfill. Actual costs may differ due to inflation and changes in technology and
regulations.
The Town is required by state regulations to make annual contributions to a restricted cash account to
finance closure and post closure care. The Town is in compliance with these requirements, and, as of
June 30, 2008, had transferred $378,865. The cumulative contribution is reported as restricted assets
on the balance sheet.
M.
0
DETAILED NOTES ON ALL FUNDS (Continued)
LONG TERM DEBT: (continued)
Restricted Assets
The balances of the restricted asset accounts are as follows:
Enterprise
Funds
Meter deposits $ 226,705
Debt requirements 721,595
Landfill closure and solid waste reserve 378,865
Total restricted assets $ 1,327,165
Pension Plan — Public Employees Retirement Association
Plan Description. Substantially all of the Town's full-time employees participate in 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, New Mexico 87504-2123. This report is also
available on PERA's website at www.pera.state.nm.us.
Funding Policy. Plan members are required to contribute a 9.15 percentage of their gross salary. The
Town is required to contribute 13.15 to 28.3 percent of the gross covered salary. The contribution
requirements of plan members and the Town of Taos are established in State statute under Chapter 10,
Article 11 NMSA 1978. The requirements may be amended by acts of legislature. The Town of
Taos's contributions to PERA for the fiscal years ending June 30, 2008, 2007 and 2006 were
$640,410, $581,742 and $503,150, respectively, which equal the amount of the required contributions
for each year.
0
4. DETAILED NOTES ON ALL FUNDS (Continued)
Deferred Compensation Plan
The State of New Mexico offers local governments a deferred compensation plan created in
accordance with Internal Revenue Code Section 457. The plan, available to all local government
employees whose employers have elected participation in the plan, permits participants to defer a
portion of their salary until future years. The deferred compensation is not available to employees
until termination, retirement, death or unforeseeable emergency.
All amounts of compensation deferred under the plan, all property and rights purchased with those
amounts, and all income attributable to those amounts, property or rights are held in trust by the State
of New Mexico for the benefit of the participants.
Approximately forty-eight employees of the Town participate in the Deferred Compensation Plan.
Neither the Town of Taos nor the State of New Mexico makes any contributions to the Deferred
Compensation Plan. All contributions withheld from participants by the Town of Taos, have been
paid to New Mexico Public Employees' Retirement Association, which administers the plan.
Post — Employment Benefits — State Retiree Health Care Plan
The 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 on the person's behalf, unless that person retires on or 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; 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 and 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
40
4. DETAILED NOTES ON ALL FUNDS (Continued)
Post - Employment Benefits — State Retiree Health Care Plan: (Continued)
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.nmncca. state.nm.us.
The Retiree Health Care Act (Section 10-7C-15 NMSA 1978) is the statutory authority that establishes
the required contributions of participating employers and their employees. The statute requires each
participating employer to contribute 1.3% of each participating employee's annual salary; each
participating employee is required to contribute .65% of their salary.
Employers joining the program after 1/1/98 are also required to make a surplus -amount contribution to
the RHCA based on one of two formulas at agreed-upon intervals.
The RHCA plan is financed on a pay-as-you-go basis. The employer, employee and retiree
contributions are required to be remitted to the RHCA on a monthly basis. The statutory requirements
for the contributions can be changed by the New Mexico State Legislature.
The Town of Taos contributions to the RHCA for the years ended June 30, 2008, 2007 and 2006 were
$75,902, $66,225, $64,735, respectively, which equal the required contributions for each year.
Risk Manaeement
The Town is exposed to various risks of loss related to torts; theft of, damage to, and destruction of
assets; errors and omissions; injuries to employees; and natural disasters. The Town has obtained
insurance through the Self Insurance Fund operating as a common risk management and insurance
program. The Town pays an annual premium to the New Mexico Self Insurers Fund for its general
insurance coverage and all risk of loss is transferred.
Deficit Fund Equit
The Civic Center Fund has a deficit fund balance of $1,410 as of June 30, 2008. It is anticipated that
the deficit will be funded by future increases in revenue or transfers from the General Fund.
41
4. DETAILED NOTES ON ALL FUNDS (Continued)
Joint Powers Agreements
The Town has entered into a joint powers agreement on July 6, 1998, with the County of Taos, Town
of Questa, and Village of Taos Ski Valley to provide an enhanced 911 -response system. The Town is
responsible for all operations. The agreement is to provide an answering point for information
regarding needed emergency services. The estimated annual cost is $480,000 with the Town
providing $219,494. The Town contributed $302,170 during the current year. The audit responsibility
lies with the Town. The agreement has no termination date.
An agreement between the Town, County of Taos, Village of Questa, Village of Red River and
Village of Taos Ski Valley was entered into on November 2, 2000 to establish the Taos Regional
Landfill Board. The Town of Taos was designated as fiscal agent and administrator of the regional
landfill. The parties to the agreement pay a tipping fee based on their percentage of usage and these
fees should be adjusted to meet the operations, maintenance and financing requirements. Expenditures
reported by the Town were $735,895 during 2008. The audit responsibility lies with the Town. The
agreement is for 50 years.
The Town has entered into a mutual agreement with the Village of Taos Ski Valley to provide: a bud
line route between the Town and the Village on December 13, 2007. The Village agrees to forward the
sum of $25,000 to the Town as partial payment of the cost of service. The mutual agreement was for a
four month period ending April 6`h 2008.
Contingencies
The Town and the Taos Pueblo entered into an agreement dated December 16, 1983 that called for the
Town to receive and treat sewage from the Pueblo for a 40 year period. Two major issues have been
disputed by both parties over the years. The Town has acknowledged that the Pueblo contributed
money in excess of what was due for its participation in the 1995 expansion of the Town's treatment
plant. The Pueblo has disputed the sewer service fees charged by the Town. The Town has made an
offer to pay the Pueblo a settlement, no longer bill the Pueblo for any disputed past due amounts and
for the parties to negotiate a new sewer rate to settle these issues. The parties are still in negotiations.
The Town has fully reserved the past due sewer charges owed by the Pueblo.
42
s
SUPPLEMENTARY INFORMATION
NON -MAJOR GOVERNMENTAL FUNDS
SPECIAL REVENUE FUNDS
FIRE PROTECTION FUND — To account for the operations and maintenance of the fire department.
Financing is provided by an allotment from the State of New Mexico Fire Marshal's Office. State Statue
Section 59A-53-2, NMSA, 1978 compilation, requires the allotment be used only to operate fire
departments.
RECREATION FUND — To account for establishing and maintaining recreational programs in the Town.
Financing is provided by program revenue and by a 1 -cent tax on cigarette sales, which is collected and
distributed by the State of New Mexico. State Statute Section 7-12-15, NMSA, 1978 compilation requires
this tax be used in the above manner.
LODGER'S TAX FUND — To account for the operations of tourist facilities or for half of advertising,
promoting and publicizing such facilities and tourist attractions. Financing is provided by one and a half
percent of a five percent tax on lodging gross receipts within the Town of Taos. State Statute Section 4-6-41
provides for this tax to be imposed by the Town. Additionally, revenues received 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 GOVERNMENTAL CORRECTIONS FUND — 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 FUND — The law enforcement protection fund is created to
account for revenues received pursuant to the law enforcement protection fund (Section 29-13-7,NMSA
1978). Amounts distributed form this fund may only be expended for the following purpose: (1) the repair
and purchase of law enforcement apparatus and equipment that meet nationally recognized standards; (2)
expenses associated with advanced law enforcement planning and training; (3) complying with match or
contribution requirements of federal funds for criminal justice programs; (4) no more than fifty percent
(50%) of the replacement salaries of municipal and county law enforcement personnel while attending a
specified advanced law enforcement planning and training.
CIVIC CENTER FUND —This fund is created 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.
COMMUNITY GRANTS FUND — This fund receives various small grants for various community
purposes. Each grant is authorized by the granting agency. The fund is authorized by Town Council
resolution.
PUBLIC TRANSPORTATION FUND — The public transportation fund is created to account for the
portion of Lodger's Tax receipts allocated for the purpose of providing transportation to the public.
43
MUNICIPAL ROAD GASOLINE TAX FUND — The Municipal Road Gasoline Tax is used to account
for a 1(� gasoline tax that is used for repairing and construction of roads. Also included in this fund is
revenue from the State Department of Transportation under a municipal arterial project agreement.
Authority is 7-7-6.9 and 7-1-6.27 NMSA 1978.
1/4 CENT MUNICIPAL GROSS RECEIPTS TAX FUND — This fund receives the proceeds from a
supplemental municipal gross receipts tax, a portion of which is pledged toward payment of principal and
interest on Series 1988 Gross Receipts Tax Revenue Bonds. After required debt service transfers have been
made, the remaining income of this fund is restricted for capital improvement purposes. NMSA 1978
Chapter 7, Article 20E-1 to 22.
CENTRAL COMMUNICATIONS FUND — 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 power agreement as authorized by Sections 11-1-1 through 11-1-7 NMSA 1978
SWIMMING POOL FUND — The fund was established to account for the contributions given to the Town
for the purpose of building a swimming pool.
DEBT SERVICE FUNDS
1989 GASOLINE TAX REVENUE BOND — This fund shall be credited with transfers for the General
State Shared Gasoline Tax Income Fund for the purpose of accumulating monies for payment of principal
and interest on Series 1989 Gasoline Tax Revenue Bonds.
1993 RECEIPTS TAX REVENUE — This fund was created to account for tax revenue earmarked for the
debt repayment.
2007 NMFA LAND PURCHASE FUND — 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.
1995 GROSS RECEIPTS TAX ACQUISITION RETIREMENT — This fund was created with transfers
from the �/4 cent Gross Receipts Tax Acquisition Improvement Fund for the purpose of accumulating monies
for the payment of principal and interest on Series 1995 Gross Receipts Tax Revenue Bonds.
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.
1995 GROSS RECEIPTS TAX ACQUISITION RESERVE — This fund was created to guarantee
payment of principal and interest on Series 1995 Gross Tax Receipts Tax Revenue Funds.
1999 GASOLINE TAX RESERVE BOND — This fund was created with transfers from the Gas Tax Fund
for the purpose of accumulating monies for the payment of principal and interest on Series 1999 Gas Tax
Revenue Bonds.
El
DEBT SERVICE FUNDS
(Continued)
2001 GROSS RECEIPTS TAX REVENUE BOND RETIREMENT — This fund was created with
transfers from Gross Receipts Tax revenues for the purpose of accumulating monies for payment of
principal and interest on Series 2001 Gross Receipts Tax Revenue Bonds.
2001 GROSS RECEIPTS TAX REVENUE BOND RESERVE — To accumulate monies for the payment
of interest and principal becoming due each year on outstanding revenue bond.
CAPITAL PROJECTS FUNDS
Capital projects funds are used to account for the acquisition and construction of major capital facilities
other than those financed by proprietary funds.
AIRPORT CONSTRUCTION — This fund is created to receive proceeds from federal and state grants for
the purpose of financing improvements to the Taos Municipal Airport.
1994 GROSS RECEIPTS TAX REVENUE BOND ACQUISITION — This fund is created to receive the
1994 Gross Receipts Tax Bond proceeds for the purpose of construction of affordable housing.
ENHANCED 911 FUND — This fund is created to receive grants and transfers for the purpose of expanding
benefits of the basic 911 emergency telephone number to achieve faster response time.
DOMESTIC VIOLENCE SHELTER — This fund is created to receive the appropriations and grants for
the purpose of constructing the Domestic Violence Shelter Home.
FACILITIES IMPROVEMENTS — This fund is created to receive transfers from other funds for the
purpose of improving facilities of the Town.
VEHICLE REPLACEMENT —This fund is created to receive transfers from other funds for the purpose
of purchasing vehicles for the Town of Taos. Authorization is a resolution of the Town Council.
1999 GAS CONSTRUCTION — This fund was created to receive the bond proceeds and to account for the
capital outlay associated with the bond issue.
45
STATE OF NEW MEXICO
TOWN OF TAOS
COMBINING BALANCE SKEET
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2008
ASSETS
Cash
Investments
Accounts receivable
Total assets
LIABILITIES AND FUND BALANCES
Liabilities:
Bank overdrafts
Deferred revenue
Accounts payable
Accrued liabilities
Total liabilities
Fund balances:
Fund balances:
Reserved for swimming pool
Reserved for debt service
Reserved for capital projects
Unreserved and undesignated
Total fund balances
Total liabilities and fund balances
Special Revenue
308
308
260,570
260,570
$ 260,878
59
59
75,216
75,216
$ 75,275
The notes to the financial statements are an integral part of this statement.
46
$ 51,471 $ $
141,109 -
11,125 6,600 353
203,893 6,600 353
94,105 56,721 6
94,105 56,721 6
$ 297,998 $ 63,321 $ 359
Local
Fire
Lodgers
Government
Law
Protection
Recreation
Tax
Correction
Enforcement
Fund #21
Fund #22
Fund #23 & 24
Fund #25
Fund #26
$ 1,658
$ 1,819
$ -
$ 11,321
$ 359
259,220
72,000
44,750
52,000
-
-
1,456
253,248
$ 260,878
$ 75,275
$ 297,998
$ 63,321
$ 359
308
308
260,570
260,570
$ 260,878
59
59
75,216
75,216
$ 75,275
The notes to the financial statements are an integral part of this statement.
46
$ 51,471 $ $
141,109 -
11,125 6,600 353
203,893 6,600 353
94,105 56,721 6
94,105 56,721 6
$ 297,998 $ 63,321 $ 359
Special Revenue
(Continued)
47
Municipal
1/4 Cent
Civic
Community
Public
Road
Municipal
Central
Swimming
Center
Grants
Transportation
Gas Tax
Gross Receipts
Communication
Pool
Fund #27
Fund #30
Fund #29
Fund #31
Fund #32
Fund #34
Fund #39
$ 26,880
$ 12,196
$
23,802
$
-
$ -
$ 31,700
$ -
2,000
322,000
-
-
-
217,000
-
12,747
16,248
6,058
73,244
28,880
$ 346,943
$
40,050
$
6,058
$ 73,244
$ 248,700
$
13,371
20,251
13,041
4,813
16,919
14
11,303
18,859
30,290
20,265
24,344
23,672
( 1,410)
326,678
15,706
6,058
73,244
225,028
( 1,410)
326,678
15,706
6,058
73,244
225,028
$ 28,880
$ 346,943
$
40,050
$
6,058
$ 73,244
$ 248,700
$
(Continued)
47
ASSETS
Cash
Investments
Accounts receivable
Total assets
STATE OF NEW MEXICO
TOWN OF TAOS
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2008
Special
Revenue
Debt Service
1989
1993 2007 NMFA
1995 Gross
Gas Tax
Receipts Tax Land
Receipts Tax
Reserve
Revenue Purchase
Acquisition
Total
Fund #46
Fund Fund #47
Retirement
$ 109,735
$ -
$ $ 30,888
$
968,970
195,500
-
363,001
-
$ 1,441,706 $ 195,500 $ $ 30,888 $
LIABILITIES AND FUND BALANCES
Liabilities:
Bank overdrafts $ 51,471 $ - $ - $ $
Deferred revenue 141,109 - _ _
Accounts payable 69,921 - -
Accrued liabilities 47,283 - -
Total liabilities 309,784 -
Fund balances:
Fund balances:
Reserved for swimming pool
Reserved for debt service
Reserved for capital projects
Unreserved and undesignated
Total fund balances
Total liabilities and fund balances
1,131,922
1,131,922
195,500
195,500
30,888
30,888
$ 1,441,706 $ 195,500 $ $ 30,888 $
The notes to the financial statements are an integral part of this statement.
HI
Debt Service
2008 Gross
1995 Gross
1999
2001 Gross
2001 Gross
823,636
Receipts Tax
Receipts Tax
Gas Tax
Receipts Tax
Receipts Tax
Revenue Bond
Acquisition
R. B.
R. B.
R. B.
170,500 $
Retirement #41
Reserve #45
Retirement #43
Retirement #40
Reserve #49
Total
$ 9,449
$ -
$ 4,689
$ 110
$ -
$ 45,136
170,500
-
412,500
778,500
$ 9,449
$ 170,500
$ 4,689
$ 110
$ 412,500
$ 823,636
9,449
170,500
4,689
110
412,500
823,636
9,449
170,500
4,689
110
412,500
823,636
$ 9,449 $
170,500 $
4,689 $
110 $
412,500 $
823,636
(Continued)
49
STATE OF NEW MEXICO
TOWN OF TAOS
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2008
Fund balances:
Fund balances:
Reserved for swimming pool
Reserved for debt service _ _ _
Reserved for capital projects 57,043 851,161 25,309 1 -
Umeserved and undesignated - - - 92,506
Total fund balances
57,043
851,161
25,309
Capital Projects
92,506
Total liabilities and fund balances
1994 GRT
$ 881,531 $
Domestic
526 $
223,436
Airport
Revenue
Enhanced
Violence
Facilities
Construction
Bond
911
Shelter
Improvements
ASSETS
Fund #52
Acquisition #51
Fund #53
Fund #28
Fund # 50
Cash
$
1,858
$ 40,348 $
309
$ 1
$ -
Investments
56,000
841,183
25,000
-
80,000
Accounts receivable
46,177
-
525
143,436
Total assets
$
104,035
$ 881,531 $
25,309
$ 526
$ 223,436
LIABILITIES AND FUND BALANCES
Liabilities:
Bank overdrafts
$
$ $
$
$ 129,371
Deferred revenue
_
_
Accounts payable
46,992
30,370
525
1,559
Accrued liabilities
-
-
Total liabilities
46,992
30,370
525
130,930
Fund balances:
Fund balances:
Reserved for swimming pool
Reserved for debt service _ _ _
Reserved for capital projects 57,043 851,161 25,309 1 -
Umeserved and undesignated - - - 92,506
Total fund balances
57,043
851,161
25,309
1
92,506
Total liabilities and fund balances
$ 104,035
$ 881,531 $
25,309 $
526 $
223,436
The notes to the financial statements are an integral part of this statement.
50
$ $ 44,710 $ 174,081 $ 225,552
- - 141,109
7,000 86,446 156,367
- - 47,283
51,710 260,527 570,311
823,636
- 518,813 1,452,327 1,452,327
257,613 350,119 1,482,041
257,613 518,813 1,802,446 3,758,004
$ 257,613 $ 570,523 $ 2,062,973 $ 4,328,315
(Continued)
51
Capital Projects
1999
Vehicle
Gas
Nonmajor
Replacement
Construction
Governmental
Fund #54
Fund #59
Total
Funds
$ 2,613
$ - $
45,129
$ 200,000
255,000
505,555
1,762,738
3,510,208
-
64,968
255,106
618,107
$ 257,613
$ 570,523 $
2,062,973
$ 4,328,315
$ $ 44,710 $ 174,081 $ 225,552
- - 141,109
7,000 86,446 156,367
- - 47,283
51,710 260,527 570,311
823,636
- 518,813 1,452,327 1,452,327
257,613 350,119 1,482,041
257,613 518,813 1,802,446 3,758,004
$ 257,613 $ 570,523 $ 2,062,973 $ 4,328,315
(Continued)
51
STATE OF NEW MEXICO
TOWN OF TAOS
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
FOR THE YEAR ENDED JUNE 30, 2008
Revenue
The notes to the financial statements are an integral part of this statement.
52
Local
Fire
Lodgers
Government
Law
Protection
Recreation
Tax
Corrections
Enforcement
Fund #21
Fund #22
Fund #23 & 24
Fund #25
Fund #26
REVENUES
Taxes:
Gross receipts tax
$ -
$ _
$
$ _
$ -
Property taxes
_
_
_
Lodgers'tax
-
-
947,126
Other state shared taxes
-
18,973
-
-
Intergovernmental
188,280
-
-
33,200
Fines and forfeitures
-
43,844
-
Charges for services
_
_
_
Miscellaneous
-
11,430
20,393
-
Total revenues
188,280
30,403
967,519
43,844
33,200
EXPENDITURES
Current operations:
General government
-
-
_
_
_
Public safety
83,260
-
-
82,743
34,033
Culture and recreation
-
26,054
535,622
-
-
Debt service:
Principal
_
_
_
Interest and fiscal charges
-
_
Capital outlay
63,378
-
11,730
Total expenditures
146,638
26,054
547,352
82,743
34,033
Excess (deficiency) of revenues
over expenditures
41,642
4,349
420,167
( 38,899)
( 833)
Other financing sources (uses):
Transfers in (out)
( 464,904)
Total other financing
sources (uses)
-
( 464,904)
Net change in fund balances
41,642
4,349
( 44,737)
( 38,899)
( 833)
Fund balances, beginning of year
218,928
70,867
138,842
95,620
839
Fund balances, end of year
$ 260,570
$ 75,216
$ 94,105
$ 56,721
$ 6
The notes to the financial statements are an integral part of this statement.
52
Special Revenue
$ $ $ $ $ 925,075 $
73,419
127,267 237,796
- 31,690 -
75,886 - _
50 - 53,233
75,936 158,957 291,029 73,419 925,075
- 67,430 -
533,478 121,051 553,907
10,455 12,000
543,933 200,481 553,907
318,696
318,696
520,917
17,273
538,190
7,845
7,845
( 467,997) (
41,524) (
Municipal
1/4 Cent
925,075 (
Civic Community
Public
Road
Municipal Central
Swimming
Center Grants
Transportation
Gas Tax
Gross Receipts Communication
Pool
Fund #27 Fund #30
Fund #29
Fund #31
Tax Fund #32 Fund #34
Fund #39
$ $ $ $ $ 925,075 $
73,419
127,267 237,796
- 31,690 -
75,886 - _
50 - 53,233
75,936 158,957 291,029 73,419 925,075
- 67,430 -
533,478 121,051 553,907
10,455 12,000
543,933 200,481 553,907
318,696
318,696
520,917
17,273
538,190
7,845
7,845
( 467,997) (
41,524) (
262,878)
73,419
925,075 (
219,494) ( 7,845)
388,633
188,000
279,200 (
73,867) (
935,445)
302,170 -
388,633
188,000
279,200 (
73,867) (
935,445)
302,170 -
( 79,364)
146,476
16,322 (
448) (
10,370)
82,676 ( 7,845)
77,954
180,202 (
616)
6,506
83,614
142,352 7,845
$( 1,410) $
326,678 $
15,706 $
6,058 $
73,244 $
225,028 $ -
(Continued)
53
STATE OF NEW MEXICO
TOWN OF TAOS
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
FOR THE YEAR ENDED JUNE 30, 2008
REVENUES
Taxes:
Gross receipts tax
Property taxes
Lodgers' tax
Other state shared taxes
Intergovernmental
Fines and forfeitures
Charges for services
Miscellaneous
Total revenues
EXPENDITURES
Current operations:
General government
Public safety
Culture and recreation
Debt service:
Principal
Interest and fiscal charges
Capital outlay
Total expenditures
Excess (deficiency) of revenues
over expenditures
Other financing sources (uses):
Transfers in (out)
Total other financing
sources (uses)
Net change in fund balances
Fund balances, beginning of year
Fund balances, end of year
Special
Revenue
Debt Service
( 316,213) ( 8,345) ( 9,442)
108,969 - ( 9,442)
1,022,953 195,500 9,442
$ 1,131,922 $ 195,500 $ -
The notes to the financial statements are an integral part of this statement.
54
134,749 ( 19,221)
30,888 ( 19,221)
- 19,221
$ 30,888 $ -
1989
1993
2007 NMFA
1995 Gross
Gas Tax
Receipts Tax
Land
Receipts Tax
Reserve
Revenue
Purchase
Acquisition
Total
Fund #46
Fund
Fund #47
Retirement
925,075
947,126
-
_
_
_
92,392
-
_
_
_
905,239
-
-
-
_
75,534
-
_
_
_
75,886
-
-
_
_
85,106
8,345
3,106,358
8,345
788,383
1,777,957
_
73,495
-
30,366
114,836
-
2,681,176
103,861
425,182
8,345
-
( 103,861)
-
( 316,213)
( 8,345)
( 9,442)
134,749 (
19,221)
( 316,213) ( 8,345) ( 9,442)
108,969 - ( 9,442)
1,022,953 195,500 9,442
$ 1,131,922 $ 195,500 $ -
The notes to the financial statements are an integral part of this statement.
54
134,749 ( 19,221)
30,888 ( 19,221)
- 19,221
$ 30,888 $ -
Debt Service
2008 Gross
1995 Gross
1999
2001 Gross
2001 Gross
Receipts Tax
Receipts Tax
Gas Tax
Receipts Tax
Receipts Tax
Revenue Bond
Acquisition
R. B.
R. B.
R. B.
Retirement #41
Reserve #45
Retirement #43
Retirement #40
Reserve #49 Total
193,748) (
498,329)
18,092
( 849,273)
97,450
( 8,229)
197,910
481,371 (
18,879)
847,364
97,450
( 8,229)
197,910
481,371 (
18,879)
8,229
9,449
-
18,092 34,666
16,958) (
787)
( 1,909)
-
8.229
527
17,068
18,092 34,666
-
150,000
455,000
678,495
88,001
43,748
43,329
205,444
88,001
193,748
498,329
883,939
( 88,001)
8,229 (
193,748) (
498,329)
18,092
( 849,273)
97,450
( 8,229)
197,910
481,371 (
18,879)
847,364
97,450
( 8,229)
197,910
481,371 (
18,879)
847,364
9,449
-
4,162 (
16,958) (
787)
( 1,909)
-
170,500
527
17,068
413,287
825,545
$ 9,449
$ 170,500 $
4,689 $
110 $
412,500
$ 823,636
(Continued)
55
STATE OF NEW MEXICO
TOWN OF TAOS
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
FOR THE YEAR ENDED JUNE 30, 2008
REVENUES
Taxes:
Gross receipts tax
Property taxes
Lodgers' tax
Other state shared taxes
Intergovernmental
Fines and forfeitures
Charges for services
Miscellaneous
Total revenues
EXPENDITURES
Current operations:
General government
Public safety
Culture and recreation
Debt service:
Principal
Interest and fiscal charges
Capital outlay
Total expenditures
Excess (deficiency) or revenues
over expenditures
Other financing sources (uses):
Transfers in (out)
Total other financing
sources (uses)
Net change in fund balances
Fund balances, beginning of year
Fund balances, end of year ,
Capital Projects
409,039
61,005
409,039 61,005
314,174 157,036
136,041 -
450,215 157,036
( 41,176) ( 96,031)
149,999 64,222
149,999 64,222
150,000
188,151
18,000
- 130,932
150,000 337,083
( 1) ( 272,861)
154,104
- 154,104
( 41,176) ( 96,031) - ( 1) ( 118,757)
98,219 947,192 25,309 2 211,263
$ 57,043 $ 851,161 $ 25,309 $ 1 $ 92,506
The notes to the financial statements are an integral part of this statement.
56
1994 GRT
Domestic
Airport
Revenue Enhanced
Violence
Facilities
Construction
Bond 911
Shelter
Improvements
Fund #52
Acquisition #56 Fund #53
Fund #28
Fund # 50
409,039
61,005
409,039 61,005
314,174 157,036
136,041 -
450,215 157,036
( 41,176) ( 96,031)
149,999 64,222
149,999 64,222
150,000
188,151
18,000
- 130,932
150,000 337,083
( 1) ( 272,861)
154,104
- 154,104
( 41,176) ( 96,031) - ( 1) ( 118,757)
98,219 947,192 25,309 2 211,263
$ 57,043 $ 851,161 $ 25,309 $ 1 $ 92,506
The notes to the financial statements are an integral part of this statement.
56
Capital Projects
1999
Vehicle Gas Nonmajor
Replacement Construction Governmental
Fund #54 Fund #59 Total Funds
925,075
947,126
92,392
102,968 726,228 1,631,467
- - 75,534
- - 75,886
18,096 79,101 198,873
121,064
805,329
3,946,353
-
809,361
809,361
-
788,383
-
1,777,957
18,000
696,495
-
-
-
205,444
124,900
225,818
617,691
732,527
124,900
225,818
1,445,052
5,010,167
( 124,900) (
104,754) (
639,723) (
1,063,814)
56,000
190,333
400,437
931,588
56,000
190,333
400,437
931,588
( 68,900)
85,579 (
239,286) (
132,226)
326,513
433,234
2,041,732
3,890,230
$ 257,613 $
518,813 $
1,802,446 $
3,758,004
(Continued)
57
STATE OF NEW MEXICO
TOWN OF TAOS
FIRE PROTECTION FUND
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
BUDGET (Non -GAAP Basis) and ACTUAL on BUDGETARY BASIS
YEAR ENDED JUNE 30, 2008
REVENUES
Intergovernmental
Miscellaneous
Total revenues
EXPENDITURES
Operating expenses
Capital outlay
Total expenditures
Excess (deficiency) of revenues
over expenditures
Net change in fund balances
Beginning cash and investments balance
Variance with
Budgeted Amounts Final Budget
Actual Positive
Original Final Amounts (Negative)
$ 168,558 $ 188,280 $ 188,280 $
168,558 188,280 188,280
205,067 224,789 85,953 138,836
182,419 182,419 63,378 119,041
387,486 407,208 149,331 257,877
( 218,928) ( 218,928) 38,949 257,877
$( 218,928) $( 218,928) $ 38,949 $ 257,877
$ 221,929 $ 221,929
RECONCILIATION TO GAAP BASIS
Net increase (decrease) in fund balances budget basis
Change in payables
Net change in fund balances GAAP basis
$ 38,949
2,693
$ 41,642
The notes to the financial statements are an integral part of this statement.
58
STATE OF NEW MEXICO
TOWN OF TAOS
RECREATION FUND
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
BUDGET (Non -GAAP Basis) and ACTUAL on BUDGETARY BASIS
YEAR ENDED JUNE 30, 2008
REVENUES
Taxes
Miscellaneous
Total revenues
EXPENDITURES
Operating expenses
Total expenditures
Excess (deficiency) of revenues
over expenditures
Net change in fund balances
Beginning cash balance
$( 8,327)
$ 20,753
RECONCILIATION TO GAAP BASIS
Net increase(decrease)in fund balances budget basis
Change in receivables
Change in payables
Net change in fund balances GAAP basis
$( 7,070) $ 5,066 $ 12,136
$ 20,753
$ 5,066
( 658)
( 59)
$ 4,349
The notes to the financial statements are an integral part of this statement.
59
Variance with
Budgeted
Amounts
Final Budget
Actual
Positive
Original
Final
Amounts
(Negative)
$ 18,145
$ 18,145
$ 19,631
$ 1,486
11,480
11,480
11,430
( 50)
29,625
29,625
31,061
1,436
37,952
36,695
25,995
10,700
37,952
36,695
25,995
10,700
( 8,327)
( 7,070)
5,066
12,136
$( 8,327)
$ 20,753
RECONCILIATION TO GAAP BASIS
Net increase(decrease)in fund balances budget basis
Change in receivables
Change in payables
Net change in fund balances GAAP basis
$( 7,070) $ 5,066 $ 12,136
$ 20,753
$ 5,066
( 658)
( 59)
$ 4,349
The notes to the financial statements are an integral part of this statement.
59
STATE OF NEW MEXICO
TOWN OF TAOS
LODGER'S TAX FUND
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
BUDGET (Non -GAAP Basis) and ACTUAL on BUDGETARY BASIS
YEAR ENDED JUNE 30, 2008
REVENUES
Taxes
Miscellaneous
Total revenues
EXPENDITURES
Operating expenses
Capital outlay
Total expenditures
Excess (deficiency) of revenues
over expenditures
OTHER FINANCING SOURCES (USES)
Transfers in (out)
Total other financing sources (uses)
Net change in fund balances
Beginning cash and investment balance
Budgeted Amounts
Original Final
$ 982,912 $ 987,015
- 13,328
982,912 1,000,343
Variance with
Final Budget
Actual Positive
Amounts (Negative)
$ 941,339
20,393
961,732
474,230 571,380 544,328
- 11,775 11,730
$( 45,676)
7,065
( 38,611)
27,052 -+
45
474,230 583,155 556,058 27,097
508,682 417,188 405,674 ( 11,514)
( 524,120) ( 54,491) ( 464,904) 410,413
( 524,120) ( 54,491) ( 464,904) 410,413
$( 15,438) $ 362,697 $( 59,230) $( 421,927)
$ 52,509 $ 52,509
RECONCILIATION TO GAAP BASIS
Net increase (decrease) in fund balances budget basis
Change in receivables
Change in payables
Net change in fund balances GAAP basis
$( 59,230)
5,787
8,706
$( 44,737)
The notes to the financial statements are an integral part of this statement.
E1
STATE OF NEW MEXICO
TOWN OF TAOS
LOCAL GOVERNMENT CORRECTIONS FUND
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
BUDGET (Non -GAAP Basis) and ACTUAL on BUDGETARY BASIS
YEAR ENDED JUNE 30, 2008
Variance with
Budgeted Amounts Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES
Fines and forfeits
$ 49,146 $
49,147 $
43,844
$(
5,303)
Total revenues
49,146
49,147
43,844
(
5,303)
EXPENDITURES
Operating expenses 125,000 127,082 80,428 46,654
Total expenditures 125,000 127,082 80,428 46,654
Excess (deficiency) of revenues
over expenditures ( 75,854) ( 77,935) ( 36,584) 41,351
Net change in fund balances $( 75,854) $( 77,935) $( 36,584) $ 41,351
Beginning cash and investment balance $ 99,905 $ 99,905
RECONCILIATION TO GAAP BASIS
Net increase (decrease)in fund balances budget basis
Change in payables
Net change in fund balances GAAP basis
$( 36,584)
( 2,315)
$( 38,899)
The notes to the financial statements are an integral part of this statement.
.31
STATE OF NEW MEXICO
TOWN OF TAOS
LAW ENFORCEMENT PROTECTION FUND
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
BUDGET (Non -GAAP Basis) and ACTUAL on BUDGETARY BASIS
YEAR ENDED JUNE 30, 2008
REVENUES
Intergovernmental
Total revenues
EXPENDITURES
Operating expenses
Total expenditures
Excess (deficiency) of revenues
over expenditures
Net change in fund balances
Beginning cash balance
Variance with
Budgeted Amounts Final Budget
Actual Positive
Original Final Amounts (Negative)
$ 32,000 $ 33,200 $ 33,200
32,000 33,200 33,200
32,000 35,040 33,999 1,041
32,000 35,040 33,999 1,041
( 1,840) ( 799) 1,041
$ $( 1,840) $( 799) $ 1,041
$ 1,158 Ji 1.158
RECONCILIATION TO GAAP BASIS
Net increase (decrease)in fund balances budget basis
Change in payables
Net change in fund balances GAAP basis
$( 799)
( 34)
$( 833)
The notes to the financial statements are an integral part of this statement.
62
STATE OF NEW MEXICO
TOWN OF TAOS
CIVIC CENTER FUND
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
BUDGET (Non -GAAP Basis) and ACTUAL on BUDGETARY BASIS
YEAR ENDED JUNE 30, 2008
REVENUES
Charges for services
Miscellaneous
Total revenues
EXPENDITURES
Operating expenses
Capital outlay
Total expenditures
Excess (deficiency) of revenues
over expenditures
OTHER FINANCING SOURCES (USES)
Transfers in (out)
Total other financing sources (uses)
Net change in fund balances
Variance with
Budgeted Amounts Final Budget
Actual Positive
Original Final Amounts (Negative)
$ 100,052 $ 100,052 $ 75,886 $( 24,166)
- - 50 50
100,052 100,052 75,936 ( 24,116)
0
513,222 565,887 521,253 44,634
4,000 10,455 10,455 -
517,222 576,342 531,708 44,634
( 417,170) ( 476,290) ( 455,772) ( 20,518)
380,027
778,482
388,633
389,849
380,027
778,482
388,633
389,849
$( 37,143) $
302,192
$( 67,139) $
369,331
Beginning cash balance $ 59,019 $ 59,019
RECONCILIATION TO GAAP BASIS
Net increase (decrease) in fund balances budget basis
Change in payables
Net change in fund balances GAAP basis
$( 67,139)
( 12,225)
$( 79,364)
The notes to the financial statements are an integral part of this statement.
rov
STATE OF NEW MEXICO
TOWN OF TAOS
COMMUNITY GRANTS FUND
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
BUDGET (Non -GAAP Basis) and ACTUAL on BUDGETARY BASIS
YEAR ENDED JUNE 30, 2008
Variance with
Budgeted Amounts Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES
Intergovernmental
$ 286,010
$ 431,477 $
127,267 $(
304,210)
Miscellaneous
41,564
27,749
18,943 (
8,806)
Total revenues
327,574
459,226
146,210 (
313,016)
EXPENDITURES
Operating expenses
563,743
608,856
173,494
435,362
Capital outlay
99,101
175,327
12,000
163,327
Total expenditures
662,844
784,183
185,494
598,689
Excess (deficiency) of revenues
over expenditures
( 335,270)
( 324,957) (
39,284)
285,673
OTHER FINANCING SOURCES (USES)
Transfers in (out) 173,000 188,000 188,000
Total other financing sources (uses) 173,000 188,000 188,000 -
Net change in fund balances $( 162,270) $( 136,957) $ 148,716 $ 285,673
Beginning cash and investments balance $ 185,480 $ 185,480
RECONCILIATION TO GAAP BASIS
Net increase (decrease) in fund balances budget basis
Change in receivables
Change in payables
Net change in fund balances GAAP basis
$ 148,716
12,747
( 14,987)
$ 146,476
The notes to the financial statements are an integral part of this statement.
64
STATE OF NEW MEXICO
TOWN OF TAOS
PUBLIC TRANSPORTATION FUND
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
BUDGET (Non -GAAP Basis) and ACTUAL on BUDGETARY BASIS
YEAR ENDED JUNE 30, 2008
REVENUES
Intergovernmental
Miscellaneous
Total revenues
EXPENDITURES
Operating expenses
Total expenditures
Excess (deficiency) of revenues
over expenditures
OTHER FINANCING SOURCES (USES)
Transfers in (out)
Total other financing sources (uses)
Net change in fund balances
Beginning cash balance
Variance with
Budgeted Amounts Final Budget
Actual Positive
Original Final Amounts (Negative)
$ 367,329 $ 320,431
- 46,898
367,329 367,329
$ 237,796
57,230
295,026
$( 82,635)
10,332
( 72,303)
575,402 578,171 545,284 32,887 —
575,402 578,171 545,284 32,887
( 208,073) ( 210,842) ( 250,258) ( 39,416)
207,200 279,200 279,200
207,200 279,200 279,200
$( 873) $ 68,358 $ 28,942 $( 39,416)
RECONCILIATION TO GAAP BASIS
Net increase (decrease) in fund balances budget basis
Change in receivables
Change in payables
Net change in fund balances GAAP basis
$ 28,942
( 3,997)
( 8,623)
$ 16,322
The notes to the financial statements are an integral part of this statement.
risy
STATE OF NEW MEXICO
TOWN OF TAOS
MUNICIPAL ROAD GASOLINE TAX FUND
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
BUDGET (Non -GAAP Basis) and ACTUAL on BUDGETARY BASIS
YEAR ENDED JUNE 30, 2008
REVENUES
Taxes
Total revenues
OTHER FINANCING SOURCES (USES)
Transfers in (out)
Total other financing sources (uses)
Net change in fund balances
Beginning cash and receivables balance
Variance with
Budgeted Amounts Final Budget
Actual Positive
Original Final Amounts (Negative)
$ 77,146 $ 77,146 $ 73,867 $( 3,279)
77,146 77,146 73,867 ( 3,279)
( 77,146) ( 77,146) ( 73,867) 3,279
( 77,146) ( 77,146) ( 73,867) 3,279
RECONCILIATION TO GAAP BASIS
Net increase (decrease) in fund balances budget basis
Change in receivables
Net change in fund balances GAAP basis
( 448)
$( 448)
The notes to the financial statements are an integral part of this statement.
66
STATE OF NEW MEXICO
TOWN OF TAOS
1/4 CENT MUNICIPAL GROSS RECEIPTS TAX FUND
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
BUDGET (Non -GAAP Basis) and ACTUAL on BUDGETARY BASIS
YEAR ENDED JUNE 30, 2008
REVENUES
Taxes
Total revenues
OTHER FINANCING SOURCES (USES)
Transfers in (out)
Total other financing sources (uses)
Net change in fund balances
Beginning cash and receivables balance
Variance with
Budgeted Amounts Final Budget
Actual Positive
Original Final Amounts (Negative)
$ 984,218 $ 984,218 $ 935,445 $( 48,773)
984,218 984,218 935,445 ( 48,,773)
( 984,218) ( 984,218) ( 935,445) 48,773
( 984,218) ( 984,218) ( 935,445) 48,773
RECONCILIATION TO GAAP BASIS
Net increase (decrease)in fund balances budget basis
Change in receivables
Net change in fund balances GAAP basis
( 10,370)
$( 10,370)
The notes to the financial statements are an integral part of this statement.
67
STATE OF NEW MEXICO
TOWN OF TAOS
CENTRAL COMMUNICATIONS FUND
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
BUDGET (Non -GAAP Basis) and ACTUAL on BUDGETARY BASIS
YEAR ENDED JUNE 30, 2008
REVENUES
Intergovernmental
Total revenues
EXPENDITURES
Operating expenses
Capital outlay
Total expenditures
Excess (deficiency) of revenues
over expenditures
OTHER FINANCING SOURCES (USES)
Transfers in (out)
Total other financing sources (uses)
Net change in fund balances
Beginning cash balance
Budgeted Amounts
Original Final
Variance with
Final Budget
Actual Positive
Amounts (Negative)
$ 329,170 $ 329,170 $ 318,696
329,170 329,170 318,696
$( 10,474)
( 10,474)
597,570 572,070 512,987 59,083
18,000 25,000 17,273 7,727
615,570 597,070 530,260 66,810
( 286,400) ( 267,900) ( 211,564) 56,336
272,596
482,087
302,170 (
179,917)
272,596
482,087
302,170 (
179,917)
$( 13,804)
$ 214,187
$ 90,606 $(
123,581)
$( 58,094) $( 58,094)
RECONCILIATION TO GAAP BASIS
Net increase (decrease) in fund balances budget basis
Change in payables
Net change in fund balances GAAP basis
$ 90,606
( 7,930)
$ 82,676
The notes to the financial statements are an integral part of this statement.
M
STATE OF NEW MEXICO
TOWN OF TAOS
1989/1999 GROSS RECEIPTS TAX REVENUE BOND RESERVE
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
BUDGET (Non -GAAP Basis) and ACTUAL on BUDGETARY BASIS
YEAR ENDED JUNE 30, 2008
REVENUES
Miscellaneous
Total revenues
OTHER FINANCING SOURCES (USES)
Transfers out
Total other financing sources (uses)
Net change in fund balances
Beginning cash balance
Variance with
Budgeted Amounts Final Budget
Actual Positive
Original Final Amounts (Negative)
$ $ 8,407 $ 8,345 $( 62)
8,407 8,345 ( 62)
( 8,407) ( 8,407) ( 8,345) 62
( 8,407) ( 8,407) ( 8,345) 62
$( 8,407) $ - $ - $
The notes to the financial statements are an integral part of this statement.
M
STATE OF NEW MEXICO
TOWN OF TAOS
1993 RECEIPTS TAX REVENUE
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
BUDGET (Non -GAAP Basis) and ACTUAL on BUDGETARY BASIS
YEAR ENDED JUNE 30, 2008
Variance with
Budgeted Amounts Final Budget
Actual Positive
Original Final Amounts (Negative)
OTHER FINANCING SOURCES (USES)
Transfers in (out) ( 9,442) ( 9,442) ( 9,442)
Total other financing sources (uses) ( 9,442) ( 9,442) ( 9,442)
Net change in fund balances $( 9,442) $( 9,442) $( 9,442) $
Beginning cash balance $ 9,442 $ 9,442
The notes to the financial statements are an integral part of this statement.
70
STATE OF NEW MEXICO
TOWN OF TAOS
2007 NMFA LAND PURCHASE
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
BUDGET (Non -GAAP Basis) and ACTUAL on BUDGETARY BASIS
YEAR ENDED JUNE 30, 2008
Variance with
Budgeted Amounts Final Budget
Actual Positive
Original Final Amounts (Negative)
EXPENDITURES
Miscellaneous $
2,504 $
2,644 $
-
$ 2,644
Debt Service:
Principal retirement
73,495
81,286
73,495
7,791
Interest and fiscal charges
27,862
29,441
30,366
( 925)
Total expenditures
103,861
113,371
103,861
9,510
OTHER FINANCING SOURCES (USES)
Transfers in (out)
114,000
123,500
134,749
11,249
Total other financing sources (uses)
114,000
123,500
134,749
11,249
Net change in fund balances $
10,139 $
10,129 $
30,888
$( 20,759)
Beginning cash balance $
_ $
_
The notes to the financial statements are an integral part of this statement.
71
STATE OF NEW MEXICO
TOWN OF TAOS
1995 GROSS RECEIPTS TAX R.B. RETIREMENT
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
BUDGET (Non -GAAP Basis) and ACTUAL on BUDGETARY BASIS
YEAR ENDED JUNE 30, 2008
OTHER FINANCING SOURCES (USES)
Transfers in (out)
Total other financing sources (uses)
Net change in fund balances
Beginning cash balance
Budgeted Amounts
Original Final
( 19,221) ( 19,221)
( 19,221)
$( 19,221) $( 19,221)
$ 19,221 $ 19,221
The notes to the financial statements are an integral part of this statement.
72
Variance with
Final Budget
Actual Positive
Amounts (Negative)
( 19,221)
( 19,221)
$( 19,221) $
STATE OF NEW MEXICO
TOWN OF TAOS
2008 GROSS RECEIPTS TAX REVENUE BOND RETIREMENT
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
BUDGET (Non -GAAP Basis) and ACTUAL on BUDGETARY BASIS
YEAR ENDED JUNE 30, 2008
EXPENDITURES
Debt Service:
Principal retirement
Interest and fiscal charges
Total expenditures
OTHER FINANCING SOURCES (USES)
Transfers in (out)
Total other financing sources (uses)
Net change in fund balances
Beginning cash balance
Variance with
Budgeted Amounts Final Budget
Actual Positive
Original Final Amounts (Negative)
$ 173,895 $ 173,895 $ - $ 173,895
287,500 287,500 88,001 199,499
461,395 461,395 88,001 373,394
442,329 442,329 97,450 ( 344;879)
442,329 97,450 ( 344,879)
$( 461,395) $( 1.9,066) $ 9,449 $ 28,515)
The notes to the financial statements are an integral part of this statement.
73
STATE OF NEW MEXICO
TOWN OF TAOS
1995 GROSS RECEIPTS TAX ACQUISITION RESERVE
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
BUDGET (Non -GAAP Basis) and ACTUAL on BUDGETARY BASIS
YEAR ENDED JUNE 30, 2008
REVENUES
Miscellaneous
Total revenues
OTHER FINANCING SOURCES (USES)
Transfers in (out)
Total other financing sources (uses)
Net change in fund balances
Beginning cash and investments balance
Variance with
Budgeted Amounts Final Budget
Actual Positive
Original Final Amounts (Negative)
$ $ 8,729 $ 8,229 $( 500)
8,729 8,229 ( 500)
( 8,729) ( 8,729)
( 8,729) ( 8,729)
$( 8,729) $ -
The notes to the financial statements are an integral part of this statement.
74
( 8,229) 500
- a
( 8,229) 500
STATE OF NEW MEXICO
TOWN OF TAOS
1999 GAS TAX R.B. RETIREMENT
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
BUDGET (Non -GAAP Basis) and ACTUAL on BUDGETARY BASIS
YEAR ENDED JUNE 30, 2008
EXPENDITURES
Debt Service:
Principal retirement
Interest and fiscal charges
Total expenditures
OTHER FINANCING SOURCES (USES)
Transfers in (out)
Total other financing sources (uses)
Net change in fund balances
Beginning cash balance
Variance with
Budgeted Amounts Final Budget
Actual Positive
Original Final Amounts (Negative)
$ 150,000 $ 150,000 $ 150,000 $ -
47,373 47,373 43,748 3,625
197,373 197,373 193,748 3,625
197,550 197,550 197,910 360
197,550 197,550 197,910 360
$ 177 $ 177 $ 4,162 $ 3,985
$ 527 $ 527
The notes to the financial statements are an integral part of this statement.
FE7
STATE OF NEW MEXICO
TOWN OF TAOS
2001 GROSS RECEIPTS TAX R.B. RETIREMENT
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
BUDGET (Non -GAAP Basis) and ACTUAL on BUDGETARY BASIS
YEAR ENDED JUNE 30, 2008
EXPENDITURES
Debt Service:
Principal retirement
Interest and fiscal charges
Total expenditures
OTHER FINANCING SOURCES (USES)
Transfers in (out)
Total other financing sources (uses)
Net change in fund balances
Beginning cash balance
Budgeted Amounts
Original Final
Variance with
Final Budget
Actual Positive
Amounts (Negative)
$ 455,000 $ 455,000 $ 455,000 $
43,329 43,329 43,329
498,330 498,329 498,329
482,087 482,087 481,371 ( 716)
482,087 482,087 481,371 ( 716)
$( 16,243) $( 16,242) $( 16,958) $( 716)
$ 17,068 $ 17,068
The notes to the financial statements are an integral part of this statement.
76
STATE OF NEW MEXICO
TOWN OF TAOS
2001 GROSS RECEIPTS TAX R.B. RESERVE
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
BUDGET (Non -GAAP Basis) and ACTUAL on BUDGETARY BASIS
YEAR ENDED JUNE 30, 2008
Variance with
Budgeted Amounts Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES
Miscellaneous
$ $ 22,000 $
18,092 $(
3,908)
Total revenues
22,000
18,092 (
3,908)
OTHER FINANCING SOURCES (USES)
Transfers in (out) ( 22,787) ( 22,787) ( 18,879) 3,908
Total other financing sources (uses) ( 22,787) ( 22,787) ( 18,879) 3,908
Net change in fund balances $( 22,787) $( 787) $( 787) $ -
Beginning cash balance $ 787 $ 787
The notes to the financial statements are an integral part of this statement.
77
STATE OF NEW MEXICO
TOWN OF TAOS
CAPITAL PROJECTS FUND - INDIVIDUAL FUND
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
BUDGET (Non -GAAP Basis) and ACTUAL on BUDGETARY BASIS
YEAR ENDED JUNE 30, 2008
REVENUES
Intergovernmental
Taxes
Miscellaneous
Total revenues
EXPENDITURES
Operating expenses
Capital outlay
Debt service
Interest & fiscal charges
Total expenditures
Excess (deficiency) of revenues
over expenditures
OTHER FINANCING SOURCES (USES)
Debt proceeds
Debt issuance premium
Transfers in (out)
Total other financing sources (uses)
Net change in fund balances
Beginning cash, investments
and receivables balance
RECONCILIATION TO GAAP BASIS
$( 18,401) $( 18,401)
Net increase (decrease) in fund balances budget basis $ 5,419,431
Change in receivables 419,850
Change in payables ( 690,734)
Net change in fund balances GAAP basis $ 5,148,547
The notes to the financial statements are an integral part of this statement.
78
Variance with
Budgeted Amounts
Final Budget
Actual
Positive
Original
Final
Amounts
(Negative)
$ 2,660,148
$ 2,722,148
$ 477,978
$( 2,244,170)
728,197
728,197
693,780
( 34,417)
-
-
80,202
80,202
3,388,345
3,450,345
1,251,960
( 2,198,385)
324,148
503,274
421,223
82,051
11,797,435
12,222,680
2,171,884
10,050,796
-
-
184,717
( 184,717)
12,121,583
12,725,954
2,777,824
9,948,130
( 8,733,238)
( 9,275,609)
( 1,525,864)
7,749,745
5,750,000
6,332,025
6,395,000
62,975
-
-
70,842
70,842
553,161
403,360
479,453
76,093
6,303,161
6,735,385
6,945,295
209,910
$( 2,430,077)
$( 2,540,224)
$ 5,419,431
$ 7,959,655
$( 18,401) $( 18,401)
Net increase (decrease) in fund balances budget basis $ 5,419,431
Change in receivables 419,850
Change in payables ( 690,734)
Net change in fund balances GAAP basis $ 5,148,547
The notes to the financial statements are an integral part of this statement.
78
STATE OF NEW MEXICO
TOWN OF TAOS
AIRPORT CONSTRUCTION FUND
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
BUDGET (Non -GAAP Basis) and ACTUAL on BUDGETARY BASIS
YEAR ENDED JUNE 30, 2008
REVENUES
Intergovernmental
Totalrevenues
EXPENDITURES
Operating expenses
Capital outlay
Total expenditures
Excess (deficiency) of revenues
over expenditures
OTHER FINANCING SOURCES (USES)
Transfers in (out)
Total other financing sources (uses)
Net change in fund balances
Beginning cash and investments balances
Budgeted Amounts
Original Final
Variance with
Final Budget
Actual Positive
Amounts (Negative)
$ 2,768,316
$ 1,231,622
$ 362,862 $(
868,760)
2,768,316
1,231,622
362,862 (
868,760)
680,953
668,532
267,182
401,350
2,238,243
687,724
136,041
551;683
2,919,196
1,356,256
403,223
953,033
( 150,880)
( 124,634)
( 40,361)
84,273
53,000 68,000
( 68,000)
53,000 68,000 68,000
$( 97,880) $( 56,634) $( 40,361) $ 16,273
$ 98,219 $ 98,219
RECONCILIATION TO GAAP BASIS
Net increase (decrease)in fund balances budget basis
Change in receivables
Change in payables
Net change in fund balances GAAP basis
$( 40,361)
46,177
( 46,992)
$( 41,176)
The notes to the financial statements are an integral part of this statement.
79
STATE OF NEW MEXICO
TOWN OF TAOS
1994 GRT REVENUE BOND ACQUISITION
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
BUDGET (Non -GAAP Basis) and ACTUAL on BUDGETARY BASIS
YEAR ENDED JUNE 30, 2008
Variance with
Budgeted Amounts Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES
Miscellaneous
$ 235,852
$ 235,852 $
61,005 $(
174,847)
Total revenues
235,852
235,852
61,005 (
174,847)
EXPENDITURES
Operating expense 164,228 259,228 126,666 132,562
Capital outlay 151,466 302,932 - 302,932
m
Total expenditures 315,694 562,160 126,666 435,494
Excess (deficiency) of revenues
over expenditures ( 79,842) ( 326,308) ( 65,661) 260,647
Net change in fund balances $( 79,842) $( 326,308) $( 65,661) $ 260,647
Beginning cash and investments balance $ 947,192 $ 947,192
RECONCILIATION TO GAAP BASIS
Net increase (decrease) in fund balances budget basis
Change in payables
Net change in fund balances GAAP basis
The notes to the financial statements are an integral part of this statement.
80
$ (65,661)
(30,370)
$ (96,031)
STATE OF NEW MEXICO
TOWN OF TAOS
DOMESTIC VIOLENCE SHELTER FUND
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
BUDGET (Non -GAAP Basis) and ACTUAL on BUDGETARY BASIS
YEAR ENDED JUNE 30, 2008
The notes to the financial statements are an integral part of this statement.
611
Variance with
Budgeted
Amounts
Final Budget
Actual
Positive
Original
Final
Amounts
(Negative)
REVENUES
Intergovernmental
$ 150,000
$ 150,000
$ 149,999
$( 1)
Total revenues
150,000
150,000
149,999
( 1)
EXPENDITURES
Operating expenses
150,000
150,000
150,000
Total expenditures
150,000
150,000
150,000
Excess (deficiency) of revenues
over expenditures
-
-
( 1)
( 1)
Net change in fund balances
$
$
$( 1)
$( 1)
Beginning cash balance
$ 2
$ 2
The notes to the financial statements are an integral part of this statement.
611
STATE OF NEW MEXICO
TOWN OF"TAGS
FACILITIES IMPROVEMENTS FUND
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
BUDGET (Non -GAAP Basis) and ACTUAL on BUDGETARY BASIS
YEAR ENDED JUNE 30, 2008
Variance with
Budgeted Amounts Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES
Intergovernmental
$ 1,171,313
$ 1,171,313
$ 49,473
$( 1,121,840)
Miscellaneous
-
500
-
( 500)
Total revenues
1,171,313
1,171,813
49,473
( 1,122,340)
EXPENDITURES
Operating expenses
187,273
280,887
183,515
97,372
Capital outlay
1,340,604
1,260,990
130,932
1,130,058
Debt service
-
18,000
( 18,000)
Total expenditures
1,527,877
1,541,877
332,447
1,209,430
Excess (deficiency) of revenues
over expenditures
OTHER FINANCING SOURCES (USES)
Transfers in (out)
Total other financing sources (uses)
Net change in fund balances
Beginning cash, investments
and receivables balance
( 356,564)
( 370,064)
( 282,974)
87,090
154,104
160,104
154,104 (
6,000)
154,104
$( 202,460)
160,104
$( 209,960)
$ 217,458 $ 217,458
RECONCILIATION TO GAAP BASIS
Net increase (decrease) in fund balances budget basis
Change in receivables
Change in payables
Net change in fund balances GAAP basis
The notes to the financial statements are an integral part of this statement.
82
154,104
$( 128,870)
$( 128,870)
14,749
( 4,636)
$( 118,757)
( 6,000)
$ 81,090
STATE OF NEW MEXICO
TOWN OF TAOS
VEHICLE REPLACEMENT FUND
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
BUDGET (Non -GAAP Basis) and ACTUAL on BUDGETARY BASIS
YEAR ENDED JUNE 30, 2008
Variance with
Budgeted Amounts Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES
Miscellaneous $ $ 5,000 $ $( 5,000)
Total revenues 5,000 ( 5,000)
EXPENDITURES
Operating expense 4,832 4,832
Capital outlay 134,832 130,000 128,834 1,166 .
Total expenditures 134,832 134,832 128,834 5,998
OTHER FINANCING SOURCES (USES)
Transfers in (out)
200,000
200,000
56,000 (
144,000)
Total other financing sources (uses)
200,000
200,000
56,000
144,000
Excess (deficiency) of revenues
over expenditures
65,168
70,168 (
72,834) (
143,002)
Net change in fund balances
$ 65,168 $
70,168 $(
72,834) $(
143,002)
Beginning cash and investments balances
$ 330,447 $
330,447
RECONCILIATION TO GAAP BASIS
Net increase (decrease) in fund balances budget basis
Change in payables
Net change in fund balances GAAP basis
The notes to the financial statements are an integral part of this statement.
83
$( 72,834)
3,934
$( 68,900)
STATE OF NEW MEXICO
TOWN OF TAOS
1999 GAS CONSTRUCTION FUND
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
BUDGET (Non -GAAP Basis) and ACTUAL on BUDGETARY BASIS
YEAR ENDED JUNE 30, 2008
Variance with
Budgeted Amounts Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES
Intergovernmental $ 1,180,508 $ 1,863,644 $ 38,000 $( 1,825,644)
Miscellaneous 24,030 24,030 18,096 ( 5,934)
Total revenues 1,204,538 1,887,674 56,096 ( 1,831,578)
EXPENDITURES
Capital outlay 1,666,952 2,510,421 222,418 2,288,003
- a
Total expenditures 1,666,952 2,510,421 222,418 2,288,003
OTHER FINANCING SOURCES (USES)
Transfers in (out) 190,333 190,333
Total other financing sources (uses) - 190,333 190,333 -
Excess (deficiency) of revenues
over expenditures ( 462,414) ( 432,414) 24,011 ( 4,119,581)
Net change in fund balances $( 462,414) $( $ 24,011 $ 456,425
Beginning cash and investments balance $ 436,834 $ 436,834
RECONCILIATION TO GAAP BASIS
Net increase (decrease) in fund balances budget basis
Change in receivables
Change in payables
Net change in fund balances GAAP basis
The notes to the financial statements are an integral part of this statement.
84
$ 24,011
64,968
( 3,400)
$ 85,579
STATE OF NEW MEXICO
TOWN OF TAOS
WATER AND SEWER FUND
STATEMENT OF REVENUES, EXPENSES AND CHANGE IN FUND NET ASSETS
BUDGET and ACTUAL
FOR THE YEAR ENDED JUNE 30, 2008
Operating Revenues:
Charges for services
Otherrevenue
Total operating revenues
Operating Expenses:
Personnel services
Capital outlay
Other
Total operating expenses
Operating income (loss)
Non-operating income (deductions):
Interest expense
Interest income
Sales tax
Federal and state grants
Total non-operating
income (deductions)
Other financing sources (uses):
Transfers in (out) from other funds
Total other financing sources (uses)
Non -budgeted items:
Bad debt
Depreciation
Total other financing sources (uses)
Net income (loss)
( 5,328,053) ( 4,721,215) 272,411 4,993.626
( 151,115)
( 160,534)
( 156,473)
Variance with
Budgeted Amounts
161,926
Final Budget
( 24,745)
508,254
Actual
Postive
Original
Final
Amounts
(Negative)
( 2,000,001)
$ 2,063,993
$ 2,128,304
$ 2,179,652
$ 51,348
385,127
215,566
253,751
38,185
2,449,120
2,343,870
2,433,403
89,533
2,759,608
( 88,134)
( 2,759,608)
629,043
637,312
595,748
41,564
5,313,549
3,645,572
-
3,645,572
1,834,581
2,782,201
1,565,244
1,216,957
7,777,173
7,065,085
2,160,992
4,904,093
( 5,328,053) ( 4,721,215) 272,411 4,993.626
( 151,115)
( 160,534)
( 156,473)
4,061
56,677
161,926
137,181
( 24,745)
508,254
508,254
462,538
( 45,716)
3,960,225
3,255,069
1,255,068
( 2,000,001)
4,374,041
3,764,715
1,698,314
( 2,066,401)
( 6,700)
( 2,759,608)
-
2,759,608
( 88,134)
( 2,759,608)
-
2,759,608
-
( 37,698)
( 37,698)
( 861,579)
( 861,579)
-
( 899,277)
( 899,277)
$( 1,042,146) $( 3,716,108) $ 1,071,448 $ 4,787,556
The notes to the financial statements are an integral part of this statement.
85
go
STATE OF NEW MEXICO
TOWN OF TAOS
LANDFILL
STATEMENT OF REVENUES, EXPENSES AND CHANGE IN FUND NET ASSETS
BUDGET and ACTUAL
FOR THE YEAR ENDED JUNE 30, 2008
Operating Expenses:
Personnel services
282,046
310,247
Variance with
6,089
Budgeted Amounts
602,913
Final Budget
-
1,789,338
Actual
Postive
473,473
Original Final
Amounts
(Negative)
Operating Revenues:
2,573,058
822,505
1,750.553
Charges for services
$ 1,145,000 $ 1,145,000
$ 1,252,531
$ 107,531
Total operating revenues
1,145,000 1,145,000
1,252,531
107,531
Operating Expenses:
Personnel services
282,046
310,247
304,158
6,089
Capital outlay
602,913
1,789,338
-
1,789,338
Other
441,989
473,473
518,347
( 44,874) -
Total operating expenses
1,326,948
2,573,058
822,505
1,750.553
Operating income (loss)
( 181,948)
( 1,428,058)
430,026
1.858.084
Non-operating income (deductions):
Interest expense
( 13,390)
( 13,390) (
13,390)
-
Interest income
12,000
12,000
37,788
25,788
Federal grants
366,073
732,146
- (
732,146)
Total non-operating
income (deductions)
364,683
730,756
24,398 (
706,358)
Other financing sources (uses):
Debt proceeds
-
1,000,000
- (
1,000,000)
Transfers in (out) from other funds
-
( 462,161)
-
462,161
Total other financing sources (uses)
-
537,839
- (
537,839)
Non -budgeted items:
Depreciation
-
- (
113,829) (
113,829)
Total other financing sources (uses)
-
(
113,829) (
113,829)
Net income (loss)
$ 115,460
$( 159,463) $
340,595 $
1,037,897
The notes to the financial statements are an integral part of this statement.
a
STATE OF NEW MEXICO
TOWN OF TAOS
SOLID WASTE FUND
STATEMENT OF REVENUES, EXPENSES AND CHANGE IN FUND NET ASSETS
BUDGET and ACTUAL
FOR THE YEAR ENDED JUNE 30, 2008
Operating Revenues:
Charges for services
Other revenue
Total operating revenues
Operating Expenses:
Personnel services
Capital outlay
Other
Total operating expenses
Operating income (loss)
Non -budgeted items:
Bad debt
Depreciation
Total other financing sources (uses)
Net income (loss)
$( 200,263) $( 200,263) $ 134,741 $( 2,284)
The notes to the financial statements are an integral part of this statement.
87
Variance with
Budgeted Amounts
Final Budget
-
Actual
Postive
Original
Final
Amounts
(Negative)
$ 934,492 $
934,492
$ 1,083,386
$ 148,894
79,652
79,652
101,123
21,471
1,014,144
1,014,144
1,184,509
170,365
116,871
103,089
74,714
28,375
81000
8,000
-
8,000
1,089,536
1,103,318
971,049
132,269
1,214,407
1,214,407
1,045,763
168.644
( 200,263) (
200,263)
138,746
1,721
( 4,005)
( 4,005)
( 4,005)
( 4,005)
$( 200,263) $( 200,263) $ 134,741 $( 2,284)
The notes to the financial statements are an integral part of this statement.
87
STATE OF NEW MEXICO
TOWN OF TAOS
SCHEDULE OF CHANGES IN ASSETS AND LIABILITIES
AGENCY FUND
JUNE 30, 2008
M
Balance
Balance
June 30,
June 30,
2007
Receipts
Disbursements
2008
ASSETS
Cash
$
27,787
$
20,520
$ 46,357
$ 1,950
Investments
30,500
31,000
-
61,500
Total assets
$
58,287
$
51,520
$ 46,357
$ 63,450
LIABILITIES
Deposits payable
$
18,680
$
36,900
$ 31,880
23,700
Accounts payable
_
-
-
-
Due to outside entities
39,607
14,620
14,477
39,750
Total liabilities
$
58,287
$
51,520
$ 46,357
$ 63,450
M
STATE OF NEW MEXICO
TOWN OF TAOS
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
FOR THE YEAR ENDING JUNE 30, 2008
U.S. Enviromental Protection
Agency:
Arsenic Removal Technologies 66.xxx
U.S. Department of Housing & Urban
Development Pass Through the State
of New Mexico, Department of
Finance & Administration:
Community Against Violence 14.235
EDI Special Project 14.xxx
Subtotal U.S. Department of Housing & Urban Development
U.S. Department of Transportation
Federal Aviation Administration (FAA)
Airport PAPI - FAA Phase 111
Federal
Program
CFDA Number Grant ID Number
Airport PAPI - FAA
U.S. Department of Justice:
Land Runway 22 - FAA
Enforcement Assistance
16.580 2005-FFNC-1109
RUS- Police Equipment
xx.xxx
COPS Technology Grant 2005
16.710 2005-CK-WX-0428
Subtotal U.S. Department of Justice
U.S. Enviromental Protection
Agency:
Arsenic Removal Technologies 66.xxx
U.S. Department of Housing & Urban
Development Pass Through the State
of New Mexico, Department of
Finance & Administration:
Community Against Violence 14.235
EDI Special Project 14.xxx
Subtotal U.S. Department of Housing & Urban Development
U.S. Department of Transportation
Federal Aviation Administration (FAA)
Airport PAPI - FAA Phase 111
20.106
2004 Recreational Trails Program
20.xxx
Airport PAPI - FAA
20.106
Land Runway 22 - FAA
20.106
Airport EIS - FAA
20.106
Subtotal Federal Aviation Administration
Total Federal Financial Awards Expenditures
NM02B001003
B -04 -SP -NM -0478
3-35-0041-017-2007
06-521-0500-0053
3-35-0041-116-2006
3-35-0041-018-2007
3-35-0041-014-2003
Award
Amount
$ 287,113
15,750
123,330
426,193
200,000
450,000
1,590,560
2,040,560
613,268
367,577
167,436
150,000
355,300
1,040,313
$ 3,707,066
Note A - Significant Accounting Policies:
The accompanying schedule of expenditures of federal awards is prepared on the modified accrual
basis of accounting.
89
Federal
Expenditures
$ 18,198
427
2,252
20,877
200,000
149,999
431,225
581,224
287,648
251,412
103,987
5,142
7,189
655,378
$ 1,457,479
FEDERAL COMPLIANCE AND FINDINGS
PATTILLO, BROWN & HILL,L.L.P.
CERTIFIED PUBLIC ACCOUNTANTS ■ BUSINESS CONSULTANTS
INDEPENDENT AUDITORS' 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
Bobby Duran, Mayor
Town Council
Town of Taos
Taos, New Mexico
and
Hector H. Balderas
New Mexico State Auditor
Santa Fe, New Mexico
We have audited the financial statements of the governmental activities, the business -type activities, each
major fund, the aggregate remaining fund information, and the budgetary comparisons for the general fund and
the combining and individual funds presented as supplemental information of the Town of Taos as of and for
the year ended June 30, 2008, and have issued our report thereon, dated November 25, 2008. 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.
Internal Control Over Financial Reuortine
In planning and performing our audit, we considered the Town of Taos, New Mexico's internal control
over financial reporting as a basis for designing our auditing procedures 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 of Taos, New Mexico's internal control over financial reporting. Accordingly, we do not express an
opinion on the effectiveness of the Town of Taos, New Mexico's internal control over financial reporting.
Our consideration of internal control over financial reporting was for the limited purpose described in the
preceding paragraph and would not necessarily identify all deficiencies in internal control over financial
reporting that might be significant deficiencies or material weaknesses. However, as discussed below, we
identified certain deficiencies in internal control over financial reporting that we consider to be significant
deficiencies.
A control deficiency 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 misstatements on a
timely basis. A significant deficiency is a control deficiency, or combination of control deficiencies, that
adversely affects the Town of Taos, New Mexico's ability to initiate, authorize, record, process, or report
financial data reliably in accordance with generally accepted principles such that there is more than a remote
likelihood that a misstatement of the Town of Taos, New Mexico's financial statements that is more than
4301 THE 25 WAY NE ■ ALBUQUERQUE, NM 87109 ■ (505) 266-5904 ■ FAX: (505) 268-6444 ■ www.pbhepa.com
AFFILIATE OFFICES: WACO, TX (254) 772-4901 ■ BROWNSVILLE, TX (956) 544-7778
HILLSBORO, TX (254) 582-2583 ■ TEMPLE, TX (254) 791-3460
90
I
inconsequential will not be prevented or detected by the Town of Taos, New Mexico's internal control. We
consider the deficiencies described in the accompanying schedule of findings and questioned costs to be
significant deficiencies in internal control over financial reporting of findings 2007-1 and 2007-3.
A material weakness is a significant deficiency, or combination of significant deficiencies, that results in
more than a remote likelihood that a material misstatement of the financial statements will not be prevented or
detected by the Town of Taos, New Mexico's internal control.
Our consideration of the internal control over financial reporting was for the limited purpose described in
the first paragraph of this section and would not necessarily identify all deficiencies in the internal control that
might be significant deficiencies and, accordingly, would not necessarily disclose all significant deficiencies
that are also considered to be material weaknesses. However, we believe that none of the significant
deficiencies described above is a material weakness.
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Town of Taos basic financial statements. -,are
free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations,
contracts and grant agreements, noncompliance with which could have a direct and material effect on the
determination of financial statement amounts. However, providing an opinion on compliance with those
provisions was not an objective of our audit and, accordingly, we do not express such an opinion. The results of
our tests disclosed instances of noncompliance, or other matters that are required to be reported under
Governmental Auditing Standards, which are described in the accompanying schedule of findings and
questioned costs as items 2007-1 and 2007-3.
Town of Taos, New Mexico's response to the findings identified in our audit is described in the
accompanying schedule of findings and questioned costs. We did not audit Town of Taos, New Mexico's
responses and, accordingly, we express no opinion on them.
This report is intended solely for the information and use of management, the Town, the Office of State
Auditor, and federal awarding agencies and pass-through entities, the Office of the State Auditor, the New
Mexico Legislature, and the New Mexico Department of Finance and Administration and should not be used by
anyone other than these specified parties.
Pattillo, Brown & Hill, L.L.P.
Albuquerque, New Mexico
November 25, 2008
4301 THE 25 WAY NE ■ ALBUQUERQUE, NM 87109 ■ (505) 266-5904 ■ FAX: (505) 268-6444 ■ www.pbhcpa.com
AFFILIATE OFFICES: WACO, TX (254) 772-4901 ■ BROWNSVILLE, TX (956) 544-7778
HILLSBORO, TX (254) 582-2583 ■ TEMPLE. TX (254) 791-3460
91
M
PATTILLO, BROWN & HILL,L.L.P.
CERTIFIED PUBLIC ACCOUNTANTS ■ BUSINESS CONSULTANTS
INDEPENDENT AUDITORS' REPORT
ON COMPLIANCE WITH REQUIREMENTS
APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL
OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A-133
Bobby Duran, Mayor
Town Council
Town of Taos
Taos, New Mexico
and
Hector H. Balderas
New Mexico State Auditor
Santa Fe, New Mexico
Compliance
We have audited the compliance of the Town of Taos, New Mexico, with the types of compliance
requirements described in the U. S. Office of Management and Budget (OMB) Circular A-133 Compliance
Supplement that are applicable to each of its major federal programs for the year ended June 30, 2008. The
Town of Taos, New Mexico's major federal programs are identified in the summary of auditor's results section
of the accompanying schedule of findings and questioned costs. Compliance with the requirements of laws,
regulations, contracts, and grants applicable to each of its major federal programs is the responsibility of the
Town of Taos, New Mexico's management. Our responsibility is to express an opinion on the Town of Taos,
New Mexico's compliance based on our audit.
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 of Taos, New
Mexico's compliance with those requirements and performing such other procedures, as we considered
necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. Our audit
does not provide a legal determination on the Town of Taos, New Mexico's compliance with those
requirements.
In our opinion, the Town of Taos, New Mexico, complied, in all material respects, with the requirements
referred to above that are applicable to each of its major federal programs for the year ended June 30, 2008.
4301 THE 25 WAY NE N ALBUQUERQUE, NM 87109 ■ (505) 266-5904 s FAX: (505) 268-6444 ■ www.pbhcpa.com
AFFILIATE OFFICES: WACO, TX (254) 772-4901 ■ BROWNSVILLE, TX (956) 544-7778
HILLSBORO, TX (254) 582-2583 ■ TEMPLE, TX (254) 791-3460
92
Internal Control Over Compliance
The management of the Town of Taos, New Mexico, is responsible for establishing and maintaining
effective internal control over compliance with requirements of laws, regulations, contracts, and grants
applicable to federal programs. In planning and performing our audit, we considered the Town of Taos, New
Mexico's internal control over compliance with requirements that could have a direct and material effect on a
major federal program in order to determine our auditing procedures for the purpose of expressing our opinion
on compliance, 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 of Taos, New
Mexico's control over compliance.
A control deficiency in an entity's internal control over compliance 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 non compliance with a type of compliance requirement of a federal program on a
timely basis. A significant deficiency is a control deficiency, or combination of control deficiencies, that
adversely affects the entity's ability to administer a federal program such that there is more than a remote
likelihood that noncompliance with a type of compliance requirement of a federal program that is more than
inconsequential will not be prevented or detected by the entity's internal control.
A material weakness is a significant deficiency, or combination of significant deficiencies, that results in
more than a remote likelihood that material noncompliance with a type of compliance requirement of a federal
program will not be prevented or detected by the entity's internal control.
Our consideration of the internal control over compliance was for the limited purpose described in the first
paragraph of this section and would not necessarily identify all deficiencies in the internal control that might be
significant deficiencies or material weaknesses. We did not identify any deficiencies in internal control over
compliance that we consider to be material weaknesses, as defined above.
This report is intended solely for the information and use of the management, Town Council, and federal
awarding agencies and pass-through entities, the Office of the State Auditor, the New Mexico Legislature, and
the New Mexico Department of Finance and Administration and is not intended to be and should not be used by
anyone other than these specified parties.
Pattillo, Brown & Hill, L.L.P.
Albuquerque, New Mexico
November 25, 2008
4301 THE 25 WAY NE ■ ALBUQUERQUE, NM 87109 ■ (505) 266-5904 ■ FAX: (505) 268-6444 ■ www.pbhcpa.com
AFFILIATE OFFICES: WACO, TX (254) 772-4901 ■ BROWNSV ILLE, TX (956) 544-7778
HILLSBORO, TX (254) 582-2583 ■ TEMPLE, TX (254) 791-3460
93
IV
STATE OF NEW MEXICO
TOWN OF TAOS
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
NNE 30, 2008
Summary of Audit Results
1. The auditors' report expresses an unqualified opinion on the financial statements of the Town of
Taos.
2. Two significant deficiencies in internal control were disclosed during the audit but were not
considered material weaknesses.
3. No instances of noncompliance material to the financial statements were disclosed during the audit.
4. There were no significant deficiencies disclosed during the audit of the major federal awards
programs reported in the Report on Compliance with Requirements Applicable to Each Major
Program and Internal Control Over Compliance in Accordance with OMB Circular A-133.
5. The auditors' report on compliance for the major federal awards programs for the Town of Taos
expresses an unqualified opinion.
6. There were no audit findings relative to the major federal awards programs for the Town of Taos to
be reported in Part C of this schedule.
7. The programs tested as major programs included:
U.S. Department of Justice — Enforcement Grant
U.S. Enviromental Protection Agency — Arsenic Removal
U.S. Department of Housing & Urban Development — EDI Special Project
U.S. Department of Transportation — Airport PAPI — FAA, Phase III
8. The threshold for distinguishing Types A and B programs was $300,000.
9. The Town of Taos did not qualify as a low risk auditee.
Findings — Financial Statements Audit
Prior Year
2007-1
Bank Reconciliations - repeat
2007-2
Travel and Per Diem- resolved
2007-3
Lodgers Tax - repeat
Current Year
2007-1 Bank reconciliations — repeat
2007-3 Lodgers Tax —repeat
99
STATE OF NEW MEXICO
TOWN OF TAOS
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
JUNE 30, 2008
CURRENT YEAR FINDINGS AND RECOMMENDATIONS
2007-1 Bank Reconciliations
Condition: The Town's clearing bank accounts were not reconciled to the general ledger.
Criteria: NMSA 6-10-2 discusses the duty of public officials to balance public money at the
close of each business day. Good accounting practices also require bank reconciliation
are prepared at least monthly.
Effect: The Town's clearing accounts are not reconciled to the general ledger causing large
adjustments to the general ledger to balance cash.
Cause: Finance department turnover caused the workload in the department to increase due to
training new employees. Reconciliations were not prepared and payroll transactions —
postings were supplicated. Instead of preparing an adjusting entry to correct the
general ledger the reconciler removed the duplicate transactions from the reconciliation
there by balancing the reconciliation.
Recommendation: The Town should review the general ledger history and prepare adjusting entries for the
duplicate transactions.
Response: Management agrees with the recommendation, and will resolve in the current fiscal
year.
2007-3 Lodgers Tax
Condition: On October 5, 2007 the Town's attorney entered into an agreement with a Lodge for
$11,250 in settlement of past due lodgers tax for the years 2002-2005. On July 31, 2008
an additional settlement was reached with two lodger's facilities for $8,975. Per the
lodgers tax audit the amount due for 2002-2005 was $138,814.
Criteria: The Lodgers Tax act, Sections 3-38-13 through 3-38-24 NMSA, in conjunction with
the Ordinance imposing the local tax, Ordinance No. 627, Section 19-55 of the Town of
Taos Municipal Code, as amended by Ordinance 83-6, 91-6, 92-4 and 97-32 impose
collection of lodgers tax on gross rental income. In addition the New Mexico
Constitution, Article IV, section 32, prohibits the Town from extinguishing the amount
due except by receipt of payment in full or by proper proceedings in court.
Effect: By the Town not enforcing their policy and following State Constitution the Town is
potentially not collecting funds that are due, which could be utilized for promoting and
publicizing such facilities and tourist attractions.
95
STATE OF NEW MEXICO
TOWN OF TAOS
SCI3EDULE OF FINDINGS AND QUESTIONED COSTS
JUNE 30, 2008
CURRENT YEAR FINDINGS AND RECOMMENDATIONS
Cause: Several lodging facilities were reducing lodging revenue by the value of complimentary
meals and beverages in order to arrive at the amount of revenue subject to the Town's
lodgers tax, despite the fact that occupants are paying lodgers' tax on the full room
charge. The above described deductions are only allowable when there is affirmative
approval from the Town pursuant to Taos Municipal Code, Section 4.12.030. No such
approvals were found by the auditor of the lodgers tax for 2002-2005.
Recommendation: The Town should consult with legal council to collect deficiencies based upon the
unapproved deductions for complimentary meals and beverages. The Town should
clarify its lodgers' tax ordinance to specifically address what constitutes amounts
received that are subject to lodgers tax. The Town should hold an educational forum to
inform all lodgers' of their responsibilities.
Response: Management agrees with the recommendation and will take collection action with legal
council.
Oil
STATE OF NEW MEXICO
TOWN OF TAOS
EXIT CONFERENCE
JUNE 30, 2008
EXIT CONFERENCE
An exit conference was held on November 25, 2008, by Cindy James, CPA of Pattilio, Brown & Hill,
L.L.P. with Rudy Abeyta, Council Member, Eugene Sanchez, Council Member, Daniel Miera, Town
Manager and Marietta Fambro, Finance Director, of the Town of Taos. The audit was discussed.
PREPARATION OF FINANCIAL STATEMENTS
The financial statements presented in this report have been prepared by the auditors, Pattillo, Brown and
Hill, L.L.C., Certified Public Accountants; however the financial statements are the responsibility of the
management.
97