Document Monument_doc_417c744c3d

TOWN OF MONUMENT, COLORADO BASIC FINANCIAL STATEMENTS December 31, 2016 ---PAGE BREAK--- INTRODUCTORY SECTION ---PAGE BREAK--- TOWN OF MONUMENT, COLORADO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2016 BOARD OF TRUSTEES Mayor Jeffery Kaiser Mayor Pro Tem Don Wilson Trustee Jeffrey Bornstein Trustee Kelly Elliot Trustee Greg Coopman Trustee Shea Medlicott Trustee Dennis Murphy ADMINISTRATIVE STAFF Chris Lowe – Town Manager Pamela Smith – Town Treasurer Laura Hogan – Town Clerk Jacob Shirk – Chief of Police Thomas Tharnish – Public Works Director Larry Manning – Planning Director ---PAGE BREAK--- TABLE OF CONTENTS PAGE INTRODUCTORY SECTION Title Page Table of Contents FINANCIAL SECTION Independent Auditors’ Report a - b Management’s Discussion and Analysis i - x Basic Financial Statements Government – Wide Financial Statements Statements of Net Position 1 Statements of Activities 2 Fund Financial Statements Balance Sheets – Governmental Funds 3 Reconciliation of the Balance Sheet – Governmental Funds to the Statement of Net Position 4 Statement of Revenues, Expenditures and Changes in Fund Balances – Governmental Funds 5 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities 6 Statement of Net Position – Proprietary Fund Type 7 Statement of Revenues, Expenses and Changes in Fund Net Position – Proprietary Fund Type 8 Statement of Cash Flows – Proprietary Fund Type 9 Notes to Financial Statements 10 – 26 ---PAGE BREAK--- TABLE OF CONTENTS (Continued) PAGE FINANCIAL SECTION (Continued) Required Supplementary Information General Fund – Budgetary Comparison Statement 27 2A Water ASD Fund – Budgetary Comparison Statement 28 Supplementary Information Combining and Individual Fund Schedules Combining Balance Sheet – Nonmajor Governmental Funds 29 Combining Statement of Revenues, Expenditures and Changes In Fund Balances – Nonmajor Governmental Funds 30 Community Development Fund – Budgetary Comparison Schedule 31 Conservation Trust Fund – Budgetary Comparison Schedule 32 Traffic Impact Fee Fund – Budgetary Comparison Schedule 33 Storm Drainage Impact Fee Fund – Budgetary Comparison Schedule 34 Debt Service Fund – Budgetary Comparison Schedule 35 Water Fund – Budgetary Comparison Schedule 36 OTHER INFORMATION Local Highway Finance Report 37 - 38 ---PAGE BREAK--- FINANCIAL SECTION ---PAGE BREAK--- a INDEPENDENT AUDITORS’ REPORT Honorable Mayor and Members of the Town Council Town of Monument Monument, Colorado Report on the Financial Statements We have audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the Town of Monument, Colorado, as of and for the year ended December 31, 2016, and the related notes to the financial statements, which collectively comprise the Town’s basic financial statements as listed in the table of contents. Management’s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditor’s Responsibility Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Opinions In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the Town of Monument, Colorado , as of December 31, 2016, and the respective changes in financial position, and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America. ---PAGE BREAK--- b Other Matters Comparative Financial Information The comparative financial information for the prior year has been presented in the accompanying financial statements in order to provide an analysis of changes in the Town’s financial position and operations. However, complete comparative financial information has not been presented in accordance with generally accepted accounting principles since its inclusion would make the financial statements cumbersome and difficult to read. The comparative financial information was derived from the Town’s financial statements for the year ended December 31, 2015, by which a report dated June 13, 2016 expressed an unmodified opinion. Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis and required budgetary information on pages i – x and 27- 28 be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Supplementary Information and Other Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Town’s basic financial statements. The accompanying supplementary information and other information, as listed in the table of contents, are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The supplementary information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the supplementary information is fairly stated in all material respects in relation to the financial statements as a whole. The other information has not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we do not express an opinion or provide any assurance on them. Aurora, Colorado June 16, 2017 ---PAGE BREAK--- i 2016 MANAGEMENT’S DISCUSSION & ANALYSIS This discussion and analysis of the Town of Monument’s financial performance provides an overview of the Town’s financial activities for the fiscal year ended December 31, 2016. Please read it in conjunction with the Town’s financial statements. This report contains other supplementary information in addition to the basic financial statements themselves. Financial Highlights  The assets of the Town of Monument exceeded its liabilities at the close of 2016 by $20,765,907 (net position). Of this amount, $1,383,843 (unrestricted net position) may be used for the Town’s obligations to citizens and creditors.  At December 31, 2016, the Town of Monument’s governmental funds reported combined ending fund balances of $1,934,486 a decrease of $1,060,839 in comparison with the prior year. $389,853 of this total amount is available for spending at the Town’s discretion (unreserved fund balance).  The unreserved fund balance for the General Fund was $389,853, or 6.15% of the total General Fund expenditures. This is a decrease of 13.07% from the prior year.  Sales and use taxes revenue, the Town’s largest source of revenue was $4,061,351 for 2016 as compared to $3,636,802 for the prior year, an increase of 10.8%. The key factor for this was an increase in commercial and residential development and a more robust economy in 2016. Using This Annual Report This discussion and analysis is intended to serve as an introduction to the Town of Monument’s basic financial statements. The Town of Monument’s basic financial statements comprise three components: 1) the government-wide financial statements 2) fund financial statements 3) notes to the financial statements Government-wide Financial Statements The government-wide financial statements are designed to provide readers with a broad overview of the Town of Monument’s finances, in a manner similar to a private-sector business. The statement of net position presents information on all the Town of Monument’s assets and liabilities, with the difference between the two reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the Town of Monument is improving or deteriorating. ---PAGE BREAK--- ii The statement of activities presents information showing how the Town of Monument’s net position changed during the most recent fiscal year. All changes in net position are reported as soon as the underlying event occurs, regardless of the timing of related cash flows. Thus, revenues and expenses reported in this statement for some items will result in cash flows in future fiscal periods uncollected taxes and earned but unused vacation leave). The government-wide financial statements distinguish functions of the Town of Monument that are principally supported by taxes and intergovernmental revenues (Governmental Activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (Business-type Activities). The Governmental Activities of the Town of Monument include general government, public safety (law enforcement & court), public works (streets, parks and recreation, cemetery) and planning. The Business-type Activities of the Town of Monument include water. Fund Financial Statements A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The Town of Monument, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All the Town’s funds can be divided into two categories: governmental funds and proprietary funds. Governmental funds – Most of the Town’s basic services are reported in governmental funds, which focus on how money flows into and out of those funds and the balances left at year-end that are available for spending. The funds are reported using an accounting method called modified accrual accounting, which measures cash and all other financial assets that can readily be converted to cash. The governmental funds statements provide a detailed short-term view of cash, the governmental fund operations and the basic services it provides. Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government- wide financial statements. By doing so, readers may better understand the long-term impact of the government’s near-term financing decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balance provide a reconciliation to facilitate this comparison between governmental funds and governmental activities. Proprietary fund – The enterprise fund of the proprietary fund type is used to report the same functions presented as business-type activities in the government-wide financial statements, but provide more detail and additional information, such as cash flow. Proprietary funds are reported in the same way that all activities are reported in the Statement of Net Position and the Statement of Activities. ---PAGE BREAK--- iii Notes to Financial Statements - The notes provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements. The notes to the financial statements can be found on pages 10 through 26 of this report. Other Information - In addition to the basic financial statements and accompanying notes, this report also presents certain required supplementary information concerning the Town of Monument’s General Fund and 2A Water ASD Fund (major special revenue fund); actual versus budgetary expenditures and can be found on pages 27 through 28 of this report. The combining statements, referred to earlier in connection with non-major governmental and enterprise funds, are presented immediately following the required supplementary information. Combining and individual fund statements and schedules can be found on pages 29 through 36. Financial Analysis of the Town as a Whole As noted earlier, net assets may serve over time as a useful indicator of a government’s financial position. This is the 13th year the Town has reported using the GASB 34 model. Comparisons of 2015 to 2016 follow. In the case of the Town of Monument, assets exceeded liabilities by $19,729,863 at the end of 2015 and at the end of 2016 by $20,765,907 an increase in Total Net Position of $1,036,044 or 5.3%. Assets 2016 2015 2016 2015 2016 2015 Governmental Activities Governmental Activities Business- type Activities Business- type Activities Total Total Current and other assets $ 3,498,333 $ 4,386,649 $1,188,921 $ 473,802 $ 4,687,254 $ 4,860,451 Capital assets, net 11,162,413 10,368,850 7,569,658 7,394,388 18,732,071 17,763,238 Total assets 14,660,746 14,755,499 8,758,579 7,868,190 23,419,325 22,623,689 Liabilities Long term liabilities 312,755 434,533 231,116 100,870 543,871 535,403 Other liabilities 1,085,414 1,292,055 230,483 301,208 1,315,897 1,593,263 Total liabilities 1,398,169 1,726,588 461,599 402,078 1,859,768 2,128,666 Deferred Inflow of Resources Deferred Property Tax Revenue 793,650 765,160 - - 793,650 765,160 Net Position Net investment in capital assets 10,757,529 9,501,983 7,259,893 7,132,446 18,017,422 16,634,429 Restricted 201,723 177,170 1,162,919 691,809 1,364,642 868,979 Unrestricted 1,509,675 2,584,598 (125,832) (358,143) 1,383,843 2,226,455 Total net position $12,468,927 $12,263,751 $8,296,980 $7,466,112 $20,765,907 $19,729,863 ---PAGE BREAK--- iv The largest portion of the Town of Monument’s net position (87%) reflects its investment in capital assets (e.g. land, buildings, infrastructure, vehicles, equipment, etc.), less any related debt still outstanding (current and long-term), that was used to acquire those assets. The Town uses these capital assets to provide services to citizens; consequently, these assets are not available for future spending. Although the Town’s investment in its capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities. Unrestricted net position may be used to meet the Town’s ongoing obligations to citizens and creditors. A small portion of the Town of Monument’s net position represents resources that are subject to external restriction on how they may be used. The remaining balance of unrestricted net position, $1,383,843, may be used to meet the Town’s ongoing obligations to citizens and creditors. ---PAGE BREAK--- v Changes in Net Position The Town’s net position increased $1,036,044 during 2016. Governmental Activities reported an $205,176 increase, with sales tax revenue and property taxes being the largest contributors. CHANGES IN NET POSITION 2016 Governmental Type Activities 2015 Governmental Type Activities 2016 Business Type Activities 2015 Business Type Activities 2016 Total 2015 Total Revenues: Program revenues: Charges for Services $499,899 $421,354 1,305,262 844,733 $1,805,161 $1,266,087 Operating Grants & Contributions 328,461 86,264 - - 328,461 86,264 Capital Grants & Contributions 47,759 40,532 681,110 252,470 728,869 293,002 General revenues: Property taxes 844,132 770,446 - - 844,132 770,446 Sales taxes 4,200,563 3,831,968 176,553 103,899 4,377,116 3,935,867 Franchise taxes 358,620 348,003 - - 358,620 348,003 Other Taxes 223,636 234,806 - - 223,636 234,806 Investment income 11,154 6,044 5,834 436 16,998 6,480 Other Misc 19,522 6,100 25,474 19,958 44,996 26,058 Transfers (21,865) (367,484) 21,865 367,484 - - Total revenues 6,511,881 5,378,033 2,216,098 1,588,980 8,727,979 6,967,013 Program expenses: General government 2,556,150 1,855,144 - - 2,556,150 1,855,144 Public safety 1,545,742 1,494,455 - - 1,545,742 1,494,455 Public works, Parks & Recreation 2,171,923 1,892,826 - - 2,171,923 1,892,826 Interest on long-term debt 22,890 68,662 16,629 16,222 39,519 84,884 Water - - 1,368,601 1,359,479 1,368,601 1,359,479 Total expenses 6,306,705 5,311,087 1,385,230 1,375,701 7,681,935 6,686,788 Increase (decrease) in net position 205,176 66,946 830,868 213,279 1,036,044 280,225 Net position 12/31/15 12,263,751 12,196,805 7,466,112 7,252,833 19,729,863 19,449,638 Net Position 12/31/16 $12,468,927 $12,263,751 $8,296,980 $7,466,112 $20,765,907 $19,729,863 ---PAGE BREAK--- vi Governmental Activities The following pie chart illustrates the governmental activities revenues. Sales and use taxes are the Town’s largest governmental activities revenue source at 68%. Property taxes are the second largest revenue source at 13% of the Town’s revenue for governmental activities. Charges for services include planning, traffic impact and storm drainage impact fees and along with franchise fees comprise the third largest revenue source of the Town’s governmental activities at The remaining interest income along with grants & contributions accounts for 12% of total revenues. ---PAGE BREAK--- vii Business-type Activities Charges for services account for 59% of the Town’s revenue for business-type activities. Sales taxes account for 8% and the remaining interest income, grants & contributions and miscellaneous revenue accounts for 33% of total revenues. Financial Analysis of the Town’s Funds The Town of Monument uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. Significant balances and transactions for General Fund revenue include sales tax related to the development at Monument Marketplace, commercial and residential development, planning fees and increased franchise fees. Total revenues for the General Fund were $5,601,236, which was $11,366 under budget. Significant balances and transactions for General Fund expenditures include $107,683 on furniture and equipment; $72,176 on vehicles and street equipment; $26,633 on park improvements and $548,852 on street improvements, for total capital outlay of $755,343. There was a CDOT grant match for the sidewalk project this year of $246,438. The Water Department spent $46,094 on well repairs; $198,209 on equipment; $157,988 on transmission & distribution lines and $28,861 on the Water Master Plan re-writes and $105,261 on vehicles for total capital outlay of $536,413. The 2A Water ASD Fund spent $1,048,163 for capital projects, $64,587 of which were contributed to the Water Enterprise Fund. This includes $915,000 in land purchases. The Town Manager, in conjunction with the Department Heads, continued to analyze the Town’s salary ranges to keep up with competitive rates, for non-exempt employees, for related size towns and job descriptions. We were able to give up to 5% Performance Based raises and had no layoffs in 2016. The Town is within range for the state-wide CML Salary Survey. Water Fund revenue was more than Budget by $806,855 due to fees for service being increased in mid-2016 and additional tap fee revenue. Customer usage increased $460,529 from 2015 to 2016. Tap fee revenue in 2016 was $681,110 which was $546,110 more than budget. This is due to the accrual of tap fees to Lake of Rockies for the Mitchell Avenue water main loop project. The Town is approaching build-out of residential properties that are the Town’s responsibility, so this revenue stream will continue to be minimal. Water billing revenue was $1,305,262 and Sales Tax Revenue was $176,553. Water Fund actual budgetary expenses were approximately $8,720 over budget in 2016 due to capital outlay that was paid in 2017 for 2016 commitments. ---PAGE BREAK--- viii General Fund Budgetary Highlights The Board of Trustees must approve increases in the expenditure budget for any fund. Line item budget transfers are allowed within a fund with the approval of the Town Manager. The General Fund’s budgeted expenditures and transfers out were $6,462,587. Actual expenditures for 2016 were $6,352,662 an amount favorable to budgeted expenditures of $109,925. This positive variance was the result, in part, of salary savings; reduced Department expenditures and the Town’s decision not to purchase all approved capital items. The following pie chart shows the distribution of expenses by program/function. General government 38% Public safety - Law Enforcement/Court 24% Public works 18% Capital Outlay 12% Debt Services 8% General Fund Expenditures - 2016 Actual ---PAGE BREAK--- ix Capital Assets and Debt Administration Capital Assets The Town of Monument’s investment in capital assets for its governmental and business- type activities as of December 31, 2016 totaled $18,732,011 (net of accumulated depreciation). Water fund capital assets represent 40% of this total. The capital projects for the Town’s governmental activities consisted of expenditures to include $107,683 on furniture and equipment; $72,176 on vehicles and street equipment; $26,633 on park improvements and $548,852 on street improvements, for total capital outlay of $755,343. There was a CDOT grant match for the sidewalk project this year of $246,438. The Water Department spent $46,094 on well repairs; $198,209 on equipment; $157,988 on transmission & distribution lines and $28,861 on the Water Master Plan re-writes and $105,261 on vehicles for total capital outlay of $536,413. The 2A Water ASD Fund spent $1,048,163 for capital projects, $64,587 of which were contributed to the Water Enterprise Fund. This includes $915,000 in land purchases. Note 5 of the financial statements provide a detailed summary of the Town’s capital assets. Long-term Debt The Town’s long-term debt related to governmental activities decreased in 2016. Payments of $655,931 were made on bonds, loans and capital lease obligations during the year. The Town did enter a new lease agreement in 2016 for Capital Asset Improvements for the Departments in the amount of $193,515. The Town’s long-term debt related to business-type activities decreased in 2016. Payments of $273,661 were made on bonds, loans and capital lease obligations. The Town did enter a new lease agreement in 2016 for Capital Asset Improvements for the Water Department in the amount of $ 321,484. Note 6 of the financial statements provide a detailed summary on the Town’s long-term debt. ---PAGE BREAK--- x Economic Factors and Next Year’s Budget and Rates The unemployment rate for El Paso County in 2016 was 3.1% down 0.9% from the 2015 average. This compares to the national average of 4.7% and state average of 2.7% for 2016. Total land use permits issued in 2016 were 309, with 288 residential and 21 commercial. This is up 68 permits from 2015, with most of the increase coming in new single family homes. 2017 is expected to be higher than 2016 numbers, due to several new residential developments beginning in the Town. Total retail sales tax is budgeted at $3,911,376 for 2017, which compares to $3,531,190 in 2016, an increase of 10.8%. Property tax revenue is expected to increase $26,244 in 2017. This increase reflects a slight upswing in development over the previous year. The mill levy for 2017 is 6.289 mills. This levy brings the Town into compliance with Tabor and Gallagher laws. The mill levy for 2016 was 6.289 mills, unchanged since 2008. The 2017 budget includes capital projects through two new capital leases which includes a road roller, trencher, gator for parks maintenance, and a Ford F350 pickup, which replaces a 16-year-old vehicle for Public Works. Law Enforcement is scheduled to receive a new police vehicle and tactical vests for the officers. Administration has a share of the generator for the Town Hall/Booster Station and a new town car for staff. The Water Enterprise Fund has splash park and other improvements at Limbach Park, the emergency generator for the booster station, engineering for radium removal at Well #9 and a transfer switch generator at Well Also, included in capital improvements for Public Works are: asphalt repairs for $250k; trail head parking lot repairs; skate park improvements; repairs to the basketball court in DWP; remove 4th street that goes through Lavelett Park; DQP bleachers for LL baseball field and bridge repairs at Highway 105 and the Trailhead. The Water Enterprise Fund has capital for a SCADA system software upgrade; a storage shed at Well #9 Treatment Plant; distribution line R&M; Well #4 & #5 treatment plant upgrade and Well #9 Ion exchange equipment for radium removal. The ancillary funds have available cash for designated projects as they are assigned. The Town is also continuing work on a storm drainage master plan, a parks master plan and a new Comprehensive Plan. The Town continues the process for compliance with the Federal National Pollutant Discharge Elimination System (NPDES) Clean Water Act and is pursuing renewable and re-use water sources. Requests for Information This financial report is designed to provide a general overview of the Town of Monument’s finances for all those with an interest in the government’s finances. Questions concerning any of the information provided in this report or additional financial information should be addressed to the Town Treasurer at the Town of Monument, 645 Beacon Lite Road, Monument, Colorado, 80132. ---PAGE BREAK--- BASIC FINANCIAL STATEMENTS ---PAGE BREAK--- BUSINESS GOVERNMENTAL TYPE ACTIVITIES ACTIVITIES 2016 2015 ASSETS Cash and Investments 1,077,445 $ - $ 1,077,445 $ 1,940,370 $ Restricted Cash and Investments 38,606 1,022,860 1,061,466 961,389 Receivables Property Taxes 793,650 - 793,650 765,160 Sales and Other 1,144,921 - 1,144,921 1,072,135 Accounts 1,904 118,186 120,090 119,715 Grants 11,247 - 11,247 - Interfund Amounts 423,235 (423,235) - - Prepaid Tap Fees - Water Line Loop - 471,110 471,110 - Prepaid Expenses 7,325 - 7,325 1,682 Capital Assets, Not Depreciated 1,767,122 3,598,626 5,365,748 4,372,056 Capital Assets, Depreciated Net of Accumulated Depreciation 9,395,291 3,971,032 13,366,323 13,391,182 TOTAL ASSETS 14,660,746 8,758,579 23,419,325 22,623,689 LIABILITIES Accounts Payable 562,084 75,197 637,281 510,678 Accrued Salaries and Benefits 62,382 8,355 70,737 63,405 Accrued Interest 3,305 2,205 5,510 22,686 Developer Escrow and Deposits 145,731 11,600 157,331 144,774 Noncurrent Liabilities Due within One Year 311,912 133,126 445,038 855,964 Due in More Than One Year 312,755 231,116 543,871 531,159 TOTAL LIABILITIES 1,398,169 461,599 1,859,768 2,128,666 DEFERRED INFLOW OF RESOURCES Deferred Property Tax Revenue 793,650 - 793,650 765,160 NET POSITION Net Investment in Capital Assets 10,757,529 7,259,893 18,017,422 16,634,429 Restricted for Emergencies 182,500 - 182,500 164,000 Restricted for Parks and Recreation 19,223 - 19,223 13,170 Restricted for Future Water Storage - 675,000 675,000 675,000 Restricted for Water Line Loop - 471,110 471,110 - Restricted for Debt Service - 16,809 16,809 16,809 Unrestricted, Unreserved 1,509,675 (125,832) 1,383,843 2,226,455 TOTAL NET POSITION 12,468,927 $ 8,296,980 $ 20,765,907 $ 19,729,863 $ TOTAL TOWN OF MONUMENT, COLORADO STATEMENT OF NET POSITION December 31, 2016 The accompanying notes are an integral part of the financial statements. 1 ---PAGE BREAK--- TOWN OF MONUMENT, COLORADO STATEMENT OF ACTIVITIES PROGRAM REVENUES OPERATING CAPITAL CHARGES FOR GRANTS AND GRANTS AND FUNCTIONS/PROGRAMS EXPENSES SERVICES CONTRIBUTIONS CONTRIBUTIONS PRIMARY GOVERNMENT Governmental Activities General Government 2,566,150 $ 227,633 $ 37,278 $ - $ Public Safety 1,545,742 106,215 - - Public Works 2,095,808 166,051 291,183 - Parks and Recreation 76,115 - - 47,759 Interest on Long-Term Debt 22,890 - - - Total Governmental Activities 6,306,705 499,899 328,461 47,759 Business-Type Activities Water 1,368,601 1,305,262 - 681,110 Interest on Long-Term Debt 16,629 - - - Total Business-Type Activities 1,385,230 1,305,262 - 681,110 Total Primary Government 7,691,935 $ 1,805,161 $ 328,461 $ 728,869 $ GENERAL REVENUES Sales and Use Taxes Property Taxes Franchise Taxes Auto Sales Taxes Other Taxes Interest Other TRANSFERS TOTAL GENERAL REVENUES CHANGE IN NET POSITION NET POSITION, Beginning NET POSITION, Ending Year Ended December 31, 2016 The accompanying notes are an integral part of the financial statements. 2 ---PAGE BREAK--- GOVERNMENTAL BUSINESS-TYPE ACTIVITIES ACTIVITIES 2016 2015 (2,301,239) $ - $ (2,301,239) $ (1,565,009) $ (1,439,527) - (1,439,527) (1,406,074) (1,638,574) - (1,638,574) (1,692,803) (28,356) - (28,356) (30,389) (22,890) - (22,890) (68,662) (5,430,586) - (5,430,586) (4,762,937) - 617,771 617,771 (262,276) - (16,629) (16,629) (16,222) - 601,142 601,142 (278,498) (5,430,586) 601,142 (4,829,444) (5,041,435) 3,884,798 176,553 4,061,351 3,636,802 844,132 - 844,132 770,446 358,620 - 358,620 348,003 315,765 - 315,765 299,065 223,636 - 223,636 234,806 11,154 5,834 16,988 6,480 19,522 25,474 44,996 26,058 (21,865) 21,865 - - 5,635,762 229,726 5,865,488 5,321,660 205,176 830,868 1,036,044 280,225 12,263,751 7,466,112 19,729,863 19,449,638 12,468,927 $ 8,296,980 $ 20,765,907 $ 19,729,863 $ TOTALS NET (EXPENSE) REVENUE AND CHANGE IN NET POSITION ---PAGE BREAK--- OTHER GENERAL 2A WATER GOVERNMENTAL FUND ASD FUND FUNDS 2016 2015 ASSETS Cash and Investments - $ 728,090 $ 349,355 $ 1,077,445 $ 1,940,370 $ Restricted Cash and Investments 19,383 - 19,223 38,606 40,550 Property Taxes Receivable 793,650 - - 793,650 765,160 Other Taxes Receivable 1,144,921 - - 1,144,921 1,072,135 Accounts Receivable 1,904 - - 1,904 61,911 Grants Receivable 11,247 - - 11,247 - Due From Other Funds 165,095 258,140 - 423,235 504,841 Prepaid Expense 7,325 - - 7,325 1,682 TOTAL ASSETS 2,143,525 986,230 368,578 3,498,333 4,386,649 LIABILITIES, DEFERRED INFLOWS AND FUND EQUITY LIABILITIES Accounts Payable 562,084 - - 562,084 456,953 Accrued Salaries and Benefits 62,382 - - 62,382 49,996 Developer Escrow 145,731 - - 145,731 119,215 TOTAL LIABILITIES 770,197 - - 770,197 626,164 DEFERRED INFLOW OF RESOURCES Deferred Property Tax Revenue 793,650 - - 793,650 765,160 FUND EQUITY Fund Balance Nonspendable 7,325 - - 7,325 1,682 Restricted for Emergencies 182,500 - - 182,500 164,000 Restricted for Parks and Recreation - - 19,223 19,223 13,170 Committed - 986,230 349,355 1,335,585 1,887,288 Unassigned 389,853 - - 389,853 929,185 TOTAL FUND EQUITY 579,678 986,230 368,578 1,934,486 2,995,325 TOTAL LIABILITIES, DEFERRED INFLOWS, AND FUND EQUITY 2,143,525 $ 986,230 $ 368,578 $ 3,498,333 $ 4,386,649 $ TOTALS TOWN OF MONUMENT, COLORADO BALANCE SHEET GOVERNMENTAL FUNDS December 31, 2016 The accompanying notes are an integral part of the financial statements. 3 ---PAGE BREAK--- Amounts reported for governmental activities in the statement of net position are different because: Total Fund Balances of Governmental Funds 1,934,486 $ Capital assets used in governmental activities are not financial resources and therefore, are not reported in the funds. 11,162,413 Long-term liabilities and related items are not due and payable in the current period and are not reported in the funds. These include Bonds and Loan Payable of ($159,000), Capital Leases ($221,464), Accrued Compensated Absences ($244,203), and Accrued Interest Payable ($3,305). (627,972) Net position of governmental activities 12,468,927 $ TOWN OF MONUMENT, COLORADO RECONCILIATION OF THE BALANCE SHEET - GOVERNMENTAL FUNDS TO THE STATEMENT OF NET POSITION December 31, 2016 The accompanying notes are an integral part of the financial statements. 4 ---PAGE BREAK--- OTHER GENERAL 2A WATER GOVERNMENTAL FUND ASD FUND FUNDS 2016 2015 REVENUES Taxes 4,770,084 $ 477,783 $ 157,125 $ 5,404,992 $ 4,952,231 $ Licenses and Permits 43,994 - 61,429 105,423 90,439 Charges for Services 122,210 - 166,051 288,261 242,534 Intergovernmental 550,420 - 47,759 598,179 359,788 Court 106,215 - - 106,215 88,381 Interest 2,741 7,591 822 11,154 6,044 Miscellaneous 5,572 - 13,950 19,522 6,100 TOTAL REVENUES 5,601,236 485,374 447,136 6,533,746 5,745,517 EXPENDITURES General Government 2,424,835 - 621 2,425,456 1,679,551 Public Safety 1,501,786 - - 1,501,786 1,453,402 Public Works 1,114,132 153,156 - 1,267,288 1,121,244 Parks and Recreation - - 41,745 41,745 39,528 Debt Service Principal 517,426 - 140,500 657,926 606,615 Interest 20,639 - 16,625 37,264 62,599 Capital Outlay 755,344 988,164 155,849 1,899,357 657,100 TOTAL EXPENDITURES 6,334,162 1,141,320 355,340 7,830,822 5,620,039 EXCESS OF REVENUES OVER (UNDER) EXPENDITURES (732,926) (655,946) 91,796 (1,297,076) 125,478 OTHER FINANCING SOURCES (USES) Proceeds from Issuance of Debt 193,515 - - 193,515 45,196 Transfers In 42,722 - 18,500 61,222 97,053 Transfers Out (18,500) - - (18,500) (97,053) TOTAL OTHER FINANCING SOURCES (USES) 217,737 - 18,500 236,237 45,196 NET CHANGE IN FUND BALANCES (515,189) (655,946) 110,296 (1,060,839) 170,674 FUND BALANCES, Beginning 1,094,867 1,642,176 258,282 2,995,325 2,824,651 FUND BALANCES, Ending 579,678 $ 986,230 $ 368,578 $ 1,934,486 $ 2,995,325 $ TOTALS TOWN OF MONUMENT, COLORADO STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - GOVERNMENTAL FUNDS Year Ended December 31, 2016 The accompanying notes are an integral part of the financial statements. 5 ---PAGE BREAK--- Amounts Reported for Governmental Activities in the Statement of Activities are Different Because: Net Changes in Fund Balances - Total Governmental Funds (1,060,839) $ 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. This is the amount by which capital outlay of $1,738,488 exceeded depreciation of (944,925) in the current period. 793,563 Capital lease proceeds are reported as financing sources in the governmental funds and increase fund balance. In the government-wide statements, however, issuing debt increases long-term liabilities in the statement of net position and does not affect the statement of activities. (193,515) Repayment of long-term debt principal is an expenditure in the governmental funds, but the repayment reduces long-term liabilities in the statement of net position. These include bond and loan payments of $140,500, payments of capital leases of $515,431, and change in accrued compensated absences of ($4,338). 651,593 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. This includes the decrease in accrued interest payable. 14,374 Change in Net Position of Governmental Activities 205,176 $ Year Ended December 31, 2016 TOWN OF MONUMENT, COLORADO RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES The accompanying notes are an integral part of the financial statements. 6 ---PAGE BREAK--- 2016 2015 ASSETS Current Assets Restricted Cash and Investments 1,022,860 $ 920,839 $ Accounts Receivable 118,186 57,804 Prepaid Tap Fees - Water Line Loop 471,110 - Total Current Assets 1,612,156 978,643 Noncurrent Assets Capital Assets, net of accumulated depreciation 7,569,658 7,394,388 TOTAL ASSETS 9,181,814 8,373,031 LIABILITIES Current Liabilities Accounts Payable 75,197 53,725 Accrued Expenses 8,355 13,409 Due to Other Funds 423,235 504,841 Accrued Interest Payable 2,205 5,007 Accrued Compensated Absences, Current Portion 5,448 4,244 Leases Payable, Current Portion 76,398 8,253 Bonds and Loan Payable, Current Portion 51,280 195,255 Total Current Liabilities 642,118 784,734 Noncurrent Liabilities Deposits 11,600 25,559 Accrued Compensated Absences 49,029 38,192 Leases Payable 182,087 7,154 Bonds and Loan Payable - 51,280 Total Noncurrent Liabilities 242,716 122,185 TOTAL LIABILITIES 884,834 906,919 NET POSITION Net Investment in Capital Assets 7,259,893 7,132,446 Restricted for Debt Service 16,809 16,809 Restricted for Future Water Storage 675,000 675,000 Restricted for Water Line Loop 471,110 - Unreserved (125,832) (358,143) TOTAL NET POSITION 8,296,980 $ 7,466,112 $ TOWN OF MONUMENT, COLORADO STATEMENT OF NET POSITION PROPRIETARY FUND TYPE December 31, 2016 The accompanying notes are an integral part of the financial statements. 7 ---PAGE BREAK--- 2016 2015 OPERATING REVENUES Charges for Services 1,305,262 $ 844,733 $ Miscellaneous Income 25,474 19,958 TOTAL OPERATING REVENUES 1,330,736 864,691 OPERATING EXPENSES Operations and Maintenance 925,268 884,535 Administrative and General 82,191 141,870 Depreciation 361,142 333,074 TOTAL OPERATING EXPENSES 1,368,601 1,359,479 OPERATING LOSS (37,865) (494,788) NON-OPERATING REVENUES (EXPENSES) Sales Taxes 176,553 103,899 Interest Income 5,834 436 Interest Expenses (16,629) (16,222) TOTAL NON-OPERATING REVENUES (EXPENSES) 165,758 88,113 LOSS BEFORE CAPITAL CONTRIBUTIONS 127,893 (406,675) CAPITAL CONTRIBUTIONS AND TRANSFERS OUT Capital Contributions Tap Fees 681,110 252,470 Other Funds 64,587 367,484 Transfers Out (42,722) - TOTAL CAPITAL CONTRIBUTIONS AND TRANSFERS OUT 702,975 619,954 NET INCOME 830,868 213,279 NET POSITION, Beginning 7,466,112 7,252,833 NET POSITION, Ending 8,296,980 $ 7,466,112 $ TOWN OF MONUMENT, COLORADO STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION PROPRIETARY FUND TYPE Year Ended December 31, 2016 The accompanying notes are an integral part of the financial statements. 8 ---PAGE BREAK--- 2016 2015 CASH FLOWS FROM OPERATING ACTIVITIES Cash Received from Customers 1,244,880 $ 840,203 $ Cash Received from Others 25,474 19,958 Cash Paid to Suppliers (666,956) (569,093) Cash Paid to Employees (393,650) (377,766) Net Cash Provided (Used) by Operating Activities 209,748 (86,698) CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Sales Tax Received 176,553 103,899 Transfers to Other Funds (42,722) - Net Cash Provided by Noncapital Financing Activities 133,831 103,899 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Purchase of Capital Assets (471,825) (31,525) Lease Proceeds 321,484 - Bond, Loan and Lease Principal Payments (273,661) (208,022) Interest Payments (19,431) (23,773) Capital Contributions Tap Fees 210,000 252,470 Deposits Received from Customers (13,959) 12,200 Net Cash Provided (Used) by Capital and Related Financing Activities (247,392) 1,350 CASH FLOWS FROM INVESTING ACTIVITIES Interest Received 5,834 436 Net Increase in Cash and Cash Equivalents 102,021 18,987 CASH AND CASH EQUIVALENTS, Beginning 920,839 901,852 CASH AND CASH EQUIVALENTS, Ending 1,022,860 $ 920,839 $ RECONCILIATION OF OPERATING LOSS TO NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES Operating Loss (37,865) $ (494,788) $ Adjustments to Reconcile Operating Loss to Net Cash Provided (Used) by Operating Activities Depreciation and Amortization 361,142 333,074 Changes in Assets and Liabilities Accounts Receivable (60,382) (4,530) Due to Other Funds (81,606) 77,254 Accounts Payable 21,472 (2,439) Accrued Expenses (5,054) - Accrued Compensated Absences 12,041 4,731 Total Adjustments 247,613 408,090 Net Cash Provided (Used) by Operating Activities 209,748 $ (86,698) $ NON-CASH ACTIVITIES Prepaid Tap Fees - Water Line Loop 471,110 $ - $ Capital Contributions - Other Funds 64,587 367,484 Total Non-Cash Activities 535,697 $ 367,484 $ TOWN OF MONUMENT, COLORADO STATEMENT OF CASH FLOWS PROPRIETARY FUND TYPE Year Ended December 31, 2016 Increase (Decrease) in Cash and Cash Equivalents The accompanying notes are an integral part of the financial statements. 9 ---PAGE BREAK--- TOWN OF MONUMENT, COLORADO NOTES TO FINANCIAL STATEMENTS December 31, 2016 10 NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The accounting policies of the Town of Monument, Colorado (the “Town”) conform to generally accepted accounting principles as applicable to governments. The Governmental Accounting Standards Board (GASB) is the accepted standard setting body for establishing governmental accounting and financial reporting principles. Following is a summary of the more significant policies. Reporting Entity In accordance with governmental accounting standards, the Town has considered the possibility of inclusion of additional entities in its basic financial statements. The definition of the reporting entity is based primarily on financial accountability. The Town is financially accountable for organizations that make up its legal entity. It is also financially accountable for legally separate organizations if Town officials appoint a voting majority of the organization’s governing body and either it is able to impose its will on that organization or there is a potential for the organization to provide specific financial benefits to, or to impose specific financial burdens on, the Town. The Town may also be financially accountable for governmental organizations that are fiscally dependent upon it. Based on the application of these criteria, the Town does not include additional organizations in its reporting entity. Government-Wide and Fund Financial Statements The government-wide financial statements the statement of net position and the statement of activities) report information on all of the nonfiduciary activities of the Town. For the most part, the effect of interfund activity has been removed from these statements. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which rely to a significant extent on fees and charges for support. The statement of net position reports all financial, capital and debt resources of the Town. The difference between assets, liabilities and deferred inflows of the Town is net position. The statement of activities demonstrates the degree to which the direct expenses of the given function or segments are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include 1) charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function or segment and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not properly included among program revenues are reported instead as general revenues. ---PAGE BREAK--- TOWN OF MONUMENT, COLORADO NOTES TO FINANCIAL STATEMENTS December 31, 2016 11 NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Government-Wide and Fund Financial Statements (Continued) Separate financial statements are provided for governmental funds and proprietary funds. Major individual governmental funds are reported as separate columns in the fund financial statements. 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 the liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met. Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collected within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the Town considers revenues to be available if they are collected within 60 days of the end of the current fiscal period. Property taxes, specific ownership taxes, grants, and interest associated with the current fiscal period are all considered to be susceptible to accrual and have been recognized as revenues of the current fiscal period. All other revenue items are considered to be measurable and available only when cash is received by the Town. 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, are recorded only when payment is due. 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. Operating expenses for enterprise funds include the cost of sales and services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses. When both restricted and unrestricted resources are available for use, it is the Town’s practice to use restricted resources first, then unrestricted resources as they are needed. ---PAGE BREAK--- TOWN OF MONUMENT, COLORADO NOTES TO FINANCIAL STATEMENTS December 31, 2016 12 NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Measurement Focus, Basis of Accounting, and Financial Statement Presentation (Continued) In the fund financial statements, 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 Town, except those required to be accounted for in another fund. The 2A Water ASD Fund accounts for the revenues and expenditures allocated for water projects. The Town also reports the following major proprietary fund: The Water Fund accounts for the financial activities associated with the provision of water services. Cash and Investments Cash equivalents include investments with original maturities of three months or less. Investments are recorded at fair value. Capital Assets Capital assets, which include property and equipment, are reported in the applicable governmental or business-type activities columns in the government-wide financial statements. Capital assets are defined by the Town 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 normal maintenance and repairs that do not add to the value of the asset or materially extend assets’ lives are not capitalized. Property and equipment of the Town is depreciated using the straight line method over the following estimated useful lives: Water Rights 50 years Wells and Treatment Plant 30 years Infrastructure 30 years Transmission & Distribution 10 years Buildings 5 – 30 years Furniture, Equipment and Vehicles 3 – 10 years Park and Street Improvements 7 – 20 years ---PAGE BREAK--- TOWN OF MONUMENT, COLORADO NOTES TO FINANCIAL STATEMENTS December 31, 2016 13 NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Compensated Absences Employees of the Town are allowed to accumulate unused vacation time. Upon termination of employment from the Town, an employee will be compensated for all accrued vacation time up to 384 hours at their current pay rate and unused sick time up to 360 hours at 50% of their current rate of pay. These compensated absences are recognized as current salary costs when earned in the proprietary fund types and when due in the governmental fund types. A liability has been recorded in the government-wide financial statements for the accrued compensated absences. Long-Term Obligations In the government-wide financial statements, and proprietary fund type in the fund financial statements, long-term debt and other long-term obligations are reported as liabilities in the applicable governmental activities, business-type activities, or proprietary fund type statement of net assets. Bond premiums and discounts are deferred and amortized over the life of the bonds using the straight-line method. In the fund financial statements, governmental fund types recognize bond premiums and discounts, as well as bond issuance costs, during the current period. The face amount of debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures. Net Position The government-wide and business-type fund financial statements utilize a net position presentation. Net position is categorized as net investment in capital assets, restricted, and unrestricted. Net investment in capital assets is intended to reflect the portion of net position which is associated with non-liquid, capital assets less outstanding capital asset related debt. The net related debt is the debt less the outstanding liquid assets and any associated unamortized cost. Restricted net position is liquid assets, which have third party limitations on their use. Unrestricted net position represents assets that do not have any third party limitations on their use. ---PAGE BREAK--- TOWN OF MONUMENT, COLORADO NOTES TO FINANCIAL STATEMENTS December 31, 2016 14 NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Fund Balance Classification The governmental fund financial statements present fund balances based on classifications that comprise a hierarchy that is based primarily on the extent to which the Town is bound to honor constraints on the specific purposes for which amounts in the respective governmental funds can be spent. The classifications used in the governmental fund financial statements are as follows:  Restricted – This classification includes amounts for which constraints have been placed on the use of the resources either externally imposed by creditors (such as through a debt covenant), grantors, contributors, or laws or regulations of other governments, or imposed by law through constitutional provisions or enabling legislation. The Town has classified Emergency Reserves as being restricted because their use is restricted by State Statute for declared emergencies. In addition, the Town has classified the fund balance in the Conservation Trust Fund as restricted because their use is restricted by State Statute.  Committed – This classification includes amounts that can be used only for specific purposes pursuant to constraints imposed by formal action of the Board of Trustees. These amounts cannot be used for any other purpose unless the Board of Trustees removes or changes the specified use by taking the same type of action (ordinance or resolution) that was employed when the funds were initially committed. This classification also includes contractual obligations to the extent that existing resources have been specifically committed for use in satisfying those contractual requirements. The Town’s committed resources are presented in the governmental fund balance sheet as of December 31, 2016.  Unassigned – This classification includes the residual fund balance for the General Fund. The Unassigned classification also includes negative residual fund balance of any other governmental fund that cannot be eliminated by offsetting of Assigned fund balance amounts. The Town would typically use Restricted fund balances first, followed by Committed resources, and then Assigned resources, as appropriate opportunities arise, but reserves the right to selectively spend Unassigned Property Taxes Property taxes are levied on November 1 and attach as an enforceable lien on property on January 1. Taxes are payable in full on April 30 or in two installments on February 28 and June 15. The County Treasurer’s office collects property taxes and remits to the Town on a basis. ---PAGE BREAK--- TOWN OF MONUMENT, COLORADO NOTES TO FINANCIAL STATEMENTS December 31, 2016 15 NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Property Taxes (Continued) Since property tax revenues are collected in arrears during the succeeding year, a receivable and corresponding deferred revenue are recorded at December 31. As the tax is collected in the succeeding year, the deferred revenue is recognized as revenue and the receivable is reduced. NOTE 2: STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY Budgets and Budgetary Accounting The Town follows these procedures in establishing the budgetary data reflected in the financial statements:  In October, the Town staff submits to the Town Council a proposed operating budget for the fiscal year commencing the following January 1. The operating budget includes proposed expenditures and the means of financing them.  Public hearings are conducted to obtain taxpayer comments.  Prior to December 15, the budget is legally enacted through passage of an ordinance.  The Town Administration is authorized to transfer budgeted amounts between departments within any fund. However, any revisions that alter the total expenditures of any fund must be approved by the Town Council.  Budgets are legally adopted for all funds of the Town. Budgets for the General and Special Revenue Funds are adopted on a basis consistent with generally accepted accounting principles (GAAP). The Budgetary comparison presented for the Enterprise Fund is presented on a non-GAAP budgetary basis. Capital outlay and debt payments are budgeted as expenditures and depreciation is not budgeted.  Budgeted amounts in the financial statements are as originally adopted or as amended by the Town Council. All appropriations lapse at year end. Colorado governments may not exceed budgeted appropriations at the fund level. Legal Compliance For the year ended December 31, 2016, the Water Fund actual expenditures and transfers out exceeded budgeted expenditures and transfers out by $8,720. This may be a violation of State statute. ---PAGE BREAK--- TOWN OF MONUMENT, COLORADO NOTES TO FINANCIAL STATEMENTS December 31, 2016 16 NOTE 3: DEPOSITS AND INVESTMENTS A summary of deposits and investments as of December 31, 2016 follows: Petty Cash $ 2,062 Cash Held with Third Parties 129,545 Cash Deposits 479,670 Investments 1,527,634 Total $ 2,138,911 The above amounts are classified in the statement of net position as follows: Cash and Investments $ 1,077,445 Restricted Cash and Investments 1,061,466 Total $ 2,138,911 Deposits Custodial Credit Risk – Deposits Custodial credit risk is the risk that in the event of a bank failure, the government’s deposits may not be returned to it. The Colorado Public Deposit Protection Act (PDPA) requires that all units of local government deposit cash in eligible public depositories. Eligibility is determined by state regulations. At December 31, 2016 State regulatory commissioners have indicated that all financial institutions holding deposits for the Town are eligible public depositories. Amounts on deposit in excess of Federal Deposit Insurance Corporation (FDIC) levels must be collateralized by eligible collateral as determined by the PDPA. The FDIC insures depositors’ accounts up to $250,000 for each financial institution. The PDPA allows the financial institution to create a single collateral pool for all public funds held. The pool is to be maintained by another institution, or held in trust for all the uninsured public deposits as a group. The market value of the collateral must be at least equal to 102% of the uninsured deposits. At December 31, 2016, the Town had deposits with financial institutions with a carrying amount of $479,670. The bank balances with the financial institutions were $478,817, which were covered by the FDIC. Investments Interest Rate Risk The Town does not have a formal investment policy that limits investment maturities as a means of managing its exposure to fair value losses arising from increasing interest rates. ---PAGE BREAK--- TOWN OF MONUMENT, COLORADO NOTES TO FINANCIAL STATEMENTS December 31, 2016 17 NOTE 3: DEPOSITS AND INVESTMENTS (Continued) District measures and records its investments using fair market value measurement guidelines established by generally accepted accounting principles. These guidelines recognize a three-tiered fair value hierarchy, as follows:  Level 1: Quoted prices for identical investment in active markets;  Level 2: Observable inputs other than quoted market prices; and,  Level 3: Unobservable inputs. Colotrust is an external investment pool that records its investments at fair value. The investment in Colotrust is categorized as a Level 2 investment. Credit Risk Colorado statutes specify in which instruments the units of local government may invest which includes:  Obligations of the United States & certain U.S. government agency securities  General obligation and revenue bonds of U.S. local government entities  Commercial paper  Local government investment pools  Written repurchase agreements collateralized by certain authorized securities  Certain money market funds  Guaranteed investment contracts The above investments are authorized for all funds and fund types used by Colorado municipalities. The Town had invested $1,527,634 in the Colorado Government Liquid Asset Trust (COLOTRUST), an investment vehicle established for local government entities in Colorado to pool surplus funds and are registered with the State Securities Commissioner. The pool operates similarly to a money market fund and each share is equal in value to $1.00. Investments consist of U.S. Treasury and U.S. Agency securities and repurchase agreements collateralized by U.S. Treasury and U.S. Agency securities. A designated custodial bank provides safekeeping and depository services in connection with the direct investment and withdrawal functions. Substantially all securities owned are held by the Federal Reserve Bank in the account maintained for the custodial bank. The custodian’s internal records identify the investments owned by the entities. Colotrust is rated AAA by Standard and Poor’s. ---PAGE BREAK--- TOWN OF MONUMENT, COLORADO NOTES TO FINANCIAL STATEMENTS December 31, 2016 18 NOTE 3: DEPOSITS AND INVESTMENTS (Continued) Restricted Cash Cash is restricted for the following purposes: Operating Reserve – Water Fund $ 220,889 Future Water Storage – Water Fund 675,000 Debt Service Reserve – Water Fund 16,809 Future Lease Purchase – Water Fund 110,162 Future Lease Purchase – General Fund 19,383 Parks and Recreation – Conservation Trust Fund 19,223 Total $1,061,466 Operating Reserve – The loan agreement with the Colorado Water Resources & Power Development Authority (CWR&PDA) requires that the Town maintain a three- month operating reserve. As of December 31, 2016, the Town’s water fund restricted cash of $220,889 for this operating reserve which did not meet the required three month operating reserve and may be a violation of the loan agreement. Future Water Storage – The Town has restricted $675,000 of the Water Fund’s cash balance for future water storage in relation to an intergovernmental agreement. The Town also restricted net position of $675,000 for future water storage in relation to this agreement. Future Lease Purchase – The Town has restricted cash of $19,383 and $110,162 in the General and Water Funds, respectively, which are held by third party for the future acquisition of capital assets under capital leases. Debt Service Reserve – The CWCB loan requires 10% of annual payment as a reserve or $16,809. For this purpose, the Town has restricted Water Fund cash at December 31, 2016. Parks and Recreation – The Town has restricted cash of $19,223 in the Conservation Trust Fund for future parks and recreation expenditures. ---PAGE BREAK--- TOWN OF MONUMENT, COLORADO NOTES TO FINANCIAL STATEMENTS December 31, 2016 19 NOTE 4: INTERFUND BALANCES AND TRANSFERS Interfund balances at December 31, 2016, were comprised of the following: Due from Other Funds Due to Other Funds Amount General Water $ 165,095 2A Water ASD Fund Water 258,140 Total $ 423,235 At December 31, 2016, the General and 2A Water ASD Funds subsidized the negative unrestricted cash balance of the Water Fund. Interfund transfers for the year ended December 31, 2016, consisted of the following: Transfers In Transfers Out Amount General Water $ 42,722 Community Development General 18,500 Total $ 61,222 During the year ended December 31, 2016, the Water Fund transferred to the General Fund an amount for administrative costs. The General Fund transferred to the Community Development an amount for capital projects. ---PAGE BREAK--- TOWN OF MONUMENT, COLORADO NOTES TO FINANCIAL STATEMENTS December 31, 2016 20 NOTE 5: CAPITAL ASSETS Capital assets activity for the year ended December 31, 2016 is summarized below: Depreciation expense was charged to functions/programs of the Town as follows: Governmental Activities General Government $ 138,699 Public Safety 43,956 Public Works 727,900 Parks and Recreation 34,370 Total $ 944,925 Balances Balances 12/31/2015 Additions Deletions 12/31/2016 Governmental Activities: Capital Assets, not being depreciated Land 802,290 $ 964,832 $ - $ 1,767,122 $ Capital Assets, being depreciated Buildings 3,873,197 - - 3,873,197 Infrastructure 8,367,154 - - 8,367,154 Water Rights 135,324 - - 135,324 Furniture and Equipment 595,278 125,995 - 721,273 Vehicles and Street Equipment 1,631,346 72,176 - 1,703,522 Park Improvements 591,334 26,633 - 617,967 Street Improvements 4,024,427 548,852 - 4,573,279 Total Capital Assets, being depreciated 19,218,060 773,656 - 19,991,716 Less accumulated depreciation Buildings (1,087,960) (123,878) - (1,211,838) Infrastructure (4,368,249) (278,905) - (4,647,154) Water Rights (18,338) (2,706) - (21,044) Furniture and Equipment (386,372) (66,475) - (452,847) Vehicles and Street Equipment (1,252,519) (81,367) - (1,333,886) Park Improvements (283,713) (33,270) - (316,983) Street Improvements (2,254,349) (358,324) - (2,612,673) Total accumulated depreciation (9,651,500) (944,925) - (10,596,425) Total Capital Assets, being depreciated, net 9,566,560 (171,269) - 9,395,291 Governmental Activities Capital Assets, net 10,368,850 $ 793,563 $ - $ 11,162,413 $ ---PAGE BREAK--- TOWN OF MONUMENT, COLORADO NOTES TO FINANCIAL STATEMENTS December 31, 2016 21 NOTE 5: CAPITAL ASSETS (Continued) Balances Balances 12/31/2015 Additions Deletions 12/31/2016 Business-type Activities: Capital Assets, not being depreciated Water Master Plan 636,111 $ 28,860 $ - $ 664,971 $ Construction in Progress 2,933,655 - - 2,933,655 Total Capital Assets, not being depreciated 3,569,766 28,860 - 3,598,626 Capital Assets, being depreciated Water Rights 125,000 - - 125,000 Alluvium Wells 420,392 - - 420,392 Public Works Building 118,897 - - 118,897 Iron Treatment Plant 287,854 - - 287,854 Water Treatment Plant 1,199,322 - - 1,199,322 Other Equipment 813,913 198,209 - 1,012,122 Slabaugh Well 191,390 - - 191,390 Wells/Treatment 7,533,685 46,094 - 7,579,779 Transmission & Distribution 1,969,438 157,988 - 2,127,426 Vehicles 279,031 105,261 - 384,292 Total Capital Assets, being depreciated 12,938,922 507,552 - 13,446,474 Less accumulated depreciation Water Rights (55,000) (2,500) - (57,500) Alluvium Wells (387,231) (3,684) - (390,915) Public Works Building (34,648) (4,303) - (38,951) Iron Treatment Plant (263,865) (9,595) - (273,460) Water Treatment Plant (386,971) (39,977) - (426,948) Other Equipment (635,133) (58,879) - (694,012) Slabaugh Well (89,957) (3,828) - (93,785) Wells/Treatment (5,454,440) (140,140) - (5,594,580) Transmission & Distribution (1,555,531) (77,525) - (1,633,056) Vehicles (251,524) (20,711) - (272,235) Total accumulated depreciation (9,114,300) (361,142) - (9,475,442) Total Capital Assets, being depreciated, net 3,824,622 146,410 - 3,971,032 Business-type Activities Capital Assets, net 7,394,388 $ 175,270 $ - $ 7,569,658 $ ---PAGE BREAK--- TOWN OF MONUMENT, COLORADO NOTES TO FINANCIAL STATEMENTS December 31, 2016 22 NOTE 6: LONG-TERM DEBT Governmental Activities Following is a summary of long-term debt transactions for the governmental activities for the year ended December 31, 2016. Accrued Compensated Absences are being paid from resources generated by the General Fund. 1979 GO Water Bonds – These bonds were issued to extend and improve the waterworks system. Principal and interest payments are due annually on December 1 through 2019. Interest accrues at a rate of 5.00% 1997 Water Loan (Colorado Water Resources and Power Development Authority) – This Loan was obtained to advance refund General Obligation Water Bonds from 1987 for water system improvements. Principal and interest payments are due semi- annually on April 1 and October 1 through 2017. Interest accrues at rates ranging from 4.10% to 5.60%. Capital Leases The Town has entered into several capital lease agreements to purchase equipment which will be paid from revenues of the General Fund. These leases require interest to be paid ranging from 2.12% to 9.16%. These leases mature from 2017-2019. Future Debt Service Requirements Annual debt service requirements for the outstanding bonds at December 31, 2016 are as follows: Balance Balance Due Within 12/31/2015 Additions Deletions 12/31/2016 One Year Govenmental Activities 1979 GO Water Bonds 24,500 $ - $ 5,500 $ 19,000 $ 5,500 $ 1997 Loan 275,000 - 135,000 140,000 140,000 Capital Leases 543,380 193,515 515,431 221,464 141,992 Accrued Compensated Absences 239,865 207,362 203,024 244,203 24,420 1,082,745 $ 400,877 $ 858,955 $ 624,667 $ 311,912 $ Year Ended December 31 Principal Interest Total 2017 145,500 $ 8,790 $ 154,290 $ 2018 6,500 675 7,175 2019 7,000 350 7,350 159,000 $ 9,815 $ 168,815 $ ---PAGE BREAK--- TOWN OF MONUMENT, COLORADO NOTES TO FINANCIAL STATEMENTS December 31, 2016 23 NOTE 6: LONG-TERM DEBT (Continued) Following is a schedule of the future minimum lease payments required under the outstanding capital lease obligations at December 31, 2016. Business-Type Activities Following is a summary of long-term debt transactions for the business-type activities for the year ended December 31, 2016. 1995 GO Water Refunding Bonds – These bonds were issued to refund the 1997 Rural Economic and Community Development Loan. Principal and interest payments are due semi-annually on June 1 and December 1, through 2016. Interest accrues at 5.125%. This obligation was paid-in-full during 2016. 2002 Colorado Water Conservation Board Loan – This loan was obtained to finance the Monument Dam project. Principal and interest payments are due annually on August 1, through 2033. Interest accrues at 5.50%. This loan matures in August of 2017. Year Ended December 31 2017 147,431 $ 2018 66,671 2019 7,533 2020 7,534 Total Minimum Lease Payments 229,169 Less: Interest (7,705) Present Value of Future Minimum Lease Payments 221,464 $ Balance Balance Due Within 12/31/2015 Additions Deletions 12/31/2016 One Year Business-type Activities 1995 GO Water Refunding 38,600 $ - $ 38,600 $ - $ - $ 2002 CWCB Loan 207,935 - 156,655 51,280 51,280 Capital Leases 15,407 321,484 78,406 258,485 76,398 Accrued Compensated Absences 42,436 24,577 12,536 54,477 5,448 304,378 $ 346,061 $ 286,197 $ 364,242 $ 133,126 $ ---PAGE BREAK--- TOWN OF MONUMENT, COLORADO NOTES TO FINANCIAL STATEMENTS December 31, 2016 24 NOTE 6: LONG-TERM DEBT (Continued) Capital Leases The Town has entered into several capital lease agreements to purchase equipment which will be paid from revenues of the Water Fund. These leases require interest to be paid ranging from 2.12% to 2.36%. These leases mature from 2017-2020. Future Debt Service Requirements Annual debt service requirements for the outstanding bonds at December 31, 2016 are as follows: Following is a schedule of the future minimum lease payments required under the outstanding capital lease obligations at December 31, 2016. Conduit Debt In January 2014, the Town issued $15,650,000 Refunding and Improvement Variable Rate Revenue Bonds for the Discover Goodwill of Southern and Western Colorado Project to provide financial assistance to a Colorado nonprofit entity to acquire, construct and equip retail facilities for donated goods. Neither the Town, State, nor any political subdivision thereof is obligated in any manner for the repayment of the bonds. Accordingly, the bonds are not reported as a liability in the Town’s financial statements. Outstanding bonds at December 31, 2016 totaled $13,876,333. Year Ended December 31 Principal Interest Total 2017 51,280 $ 2,820 $ 54,100 $ Year Ended December 31 2017 81,920 $ 2018 74,854 2019 57,601 2020 57,602 Total Minimum Lease Payments 271,977 Less: Interest (13,492) Present Value of Future Minimum Lease Payments 258,485 $ ---PAGE BREAK--- TOWN OF MONUMENT, COLORADO NOTES TO FINANCIAL STATEMENTS December 31, 2016 25 NOTE 7: RETIREMENT COMMITMENTS Deferred Compensation Plan The Town offers its employees a deferred compensation plan created in accordance with Internal Revenue Code Section 457. The plan is available to all Town employees and permits them to defer a portion of their salary until future years. The Town matches employee contributions up to 5% of eligible salary. During the year ended December 31, 2016, the Town contributions were $121,602, equal to the required contribution. The deferred compensation is not available to employees until termination, retirement, death or unforeseeable emergency. NOTE 8: PUBLIC ENTITY RISK POOL 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. For these risks of loss, the Town is involved with the Colorado Intergovernmental Risk Sharing Agency (CIRSA), a separate and independent governmental and legal entity formed by intergovernmental agreement by member municipalities pursuant to the provision of 24-10-115.5, Colorado Revised Statutes (1982 Replacement Volume) and Colorado Constitution, Article XIV, Section 18(2). The purposes of CIRSA are to provide members defined liability, property, and workers compensation coverages and to assist members in preventing and reducing losses and injuries to municipal property and to persons or property which might result in claims being made against members of CIRSA, their employees and officers. It is the intent of the members of CIRSA to create an entity in perpetuity which will administer and use funds contributed by the members to defend and indemnify, in accordance with the bylaws, any member of CIRSA against stated liability of loss, to the limit of the financial resources of CIRSA. It is also the intent of the members to have CIRSA provide continuing stability and availability of needed coverages at reasonable costs. All income and assets of CIRSA shall be at all times dedicated to the exclusive benefit of its members. CIRSA is a separate legal entity and the Town does not approve budgets nor does it have the ability to significantly affect the operations of entity. ---PAGE BREAK--- TOWN OF MONUMENT, COLORADO NOTES TO FINANCIAL STATEMENTS December 31, 2016 26 NOTE 9: COMMITMENTS AND CONTINGENCIES Monument Lake and Dam During 1999, the Colorado Legislature enacted a law, which would grant ownership of the dam and, water storage rights to the town upon the completion of the reconstruction of the dam and acceptance by the Town. The Town is awaiting the deed from the Governor’s office. Construction was completed in September 2003; however, there are ongoing improvements being made prior to the transfer of ownership. Tabor Amendment Colorado voters passed an amendment to the State Constitution, Article X, Section 20, which has several limitations, including revenue raising, spending abilities, and other specific requirements of state and local government. In November 1996, voters within the Town approved the collection, retention and expenditure of the all revenues generated by the Town in 1996 and subsequent years, notwithstanding the provisions of the Amendment. The Town believes it is in substantial compliance with the Amendment. The Town has established an emergency reserve, representing 3% of qualifying expenditures, as required by the Amendment. At December 31, 2016, the emergency reserve of $182,500 was recorded in the General Fund. ---PAGE BREAK--- REQUIRED SUPPLEMENTARY INFORMATION ---PAGE BREAK--- VARIANCE ORIGINAL FINAL Positive 2015 BUDGET BUDGET ACTUAL (Negative) ACTUAL REVENUES Taxes 4,560,880 $ 4,546,380 $ 4,770,084 $ 223,704 $ 4,321,019 $ Licenses and Permits 61,000 61,000 43,994 (17,006) 34,477 Charges for Services 153,900 152,350 122,210 (30,140) 162,501 Intergovernmental 675,900 718,622 550,420 (168,202) 319,256 Court 150,500 130,750 106,215 (24,535) 88,381 Interest 3,500 3,500 2,741 (759) 3,471 Miscellaneous 1,500 - 5,572 5,572 - TOTAL REVENUES 5,607,180 5,612,602 5,601,236 (11,366) 4,929,105 EXPENDITURES Current General Government 2,082,433 2,225,417 2,424,835 (199,418) 1,664,664 Public Safety 1,560,243 1,560,243 1,501,786 58,457 1,453,402 Public Works 1,199,867 1,199,867 1,114,132 85,735 976,908 Capital Outlay 923,959 923,959 755,344 168,615 233,754 Debt Service Principal 513,904 513,904 517,426 (3,522) 476,615 Interest 20,697 20,697 20,639 58 38,724 TOTAL EXPENDITURES 6,301,103 6,444,087 6,334,162 109,925 4,844,067 EXCESS OF REVENUES OVER (UNDER) EXPENDITURES (693,923) (831,485) (732,926) 98,559 85,038 OTHER FINANCING SOURCES (USES) Proceeds from Issuance of Debt 231,000 268,300 193,515 (74,785) 45,196 Transfers In 42,722 - 42,722 42,722 97,053 Transfers (Out) (18,500) (18,500) (18,500) - - TOTAL OTHER FINANCING SOURCES (USES) 255,222 249,800 217,737 (32,063) 142,249 NET CHANGE IN FUND BALANCE (438,701) (581,685) (515,189) 66,496 227,287 FUND BALANCE, Beginning 740,712 981,795 1,094,867 113,072 867,580 FUND BALANCE, Ending 302,011 $ 400,110 $ 579,678 $ 179,568 $ 1,094,867 $ 2016 TOWN OF MONUMENT, COLORADO GENERAL FUND BUDGETARY COMPARISON SCHEDULE Year Ended December 31, 2016 (With Comparative Actual Totals for the Year Ended December 31, 2015) See the accompanying Independent Auditor's Report. 27 ---PAGE BREAK--- ORIGINAL VARIANCE AND FINAL Positive 2015 BUDGET ACTUAL (Negative) ACTUAL REVENUES Sales Tax 416,446 $ 477,783 $ 61,337 $ 477,360 $ Interest 2,200 7,591 5,391 2,242 TOTAL REVENUES 418,646 485,374 66,728 479,602 EXPENDITURES Public Works 188,000 153,156 34,844 144,336 Capital Outlay 1,670,756 988,164 682,592 345,833 TOTAL EXPENDITURES 1,858,756 1,141,320 717,436 490,169 EXCESS OF REVENUES OVER (UNDER) EXPENDITURES (1,440,110) (655,946) 784,164 (10,567) OTHER FINANCING SOURCES (USES) Transfers (Out) - - - (97,053) NET CHANGE IN FUND BALANCE (1,440,110) (655,946) 784,164 (107,620) FUND BALANCE, Beginning 1,440,110 1,642,176 202,066 1,749,796 FUND BALANCE, Ending - $ 986,230 $ 986,230 $ 1,642,176 $ 2016 (With Comparative Actual Totals for the Year Ended December 31, 2015) TOWN OF MONUMENT, COLORADO 2A WATER ASD FUND BUDGETARY COMPARISON SCHEDULE Year Ended December 31, 2016 See the accompanying Independent Auditor's Report. 28 ---PAGE BREAK--- SUPPLEMENTARY INFORMATION ---PAGE BREAK--- STORM COMMUNITY CONSERVATION TRAFFIC DRAINAGE DEVELOPMENT TRUST IMPACT FEE IMPACT FEE FUND FUND FUND FUND ASSETS Cash and Investments 47,928 $ - $ 285,226 $ 16,201 $ Restricted Cash and Investments - 19,223 - - TOTAL ASSETS 47,928 $ 19,223 $ 285,226 $ 16,201 $ FUND EQUITY Restricted for Parks and Recreation - $ 19,223 $ - $ - $ Committed 47,928 - 285,226 16,201 TOTAL FUND EQUITY 47,928 $ 19,223 $ 285,226 $ 16,201 $ TOWN OF MONUMENT, COLORADO NONMAJOR GOVERNMENTAL FUNDS COMBINING BALANCE SHEET December 31, 2016 SPECIAL REVENUE FUNDS See the accompanying Independent Auditor's Report. 29 ---PAGE BREAK--- DEBT SERVICE FUND 2016 2015 - $ 349,355 $ 245,112 $ - 19,223 13,170 - $ 368,578 $ 258,282 $ - $ 19,223 $ 13,170 $ - 349,355 245,112 - $ 368,578 $ 258,282 $ TOTALS ---PAGE BREAK--- STORM COMMUNITY CONSERVATION TRAFFIC DRAINAGE DEVELOPMENT TRUST IMPACT FEE IMPACT FEE FUND FUND FUND FUND REVENUES Licenses and Permits 61,429 $ - $ - $ - $ Intergovernmental - 47,759 - - Charges for Services - - 102,368 63,683 Sales Tax - - - - Interest 48 39 482 253 Miscellaneous 13,950 - - - TOTAL REVENUES 75,427 47,798 102,850 63,936 EXPENDITURES General Government - - - 621 Parks and Recreation - 41,745 - - Capital Outlay 75,219 - 20,630 60,000 Debt Service Principal - - - - Interest and Fiscal Charges - - - - TOTAL EXPENDITURES 75,219 41,745 20,630 60,621 EXCESS OF REVENUES OVER (UNDER) EXPENDITURES 208 6,053 82,220 3,315 OTHER FINANCING SOURCES (USES) Transfers In 18,500 - - - CHANGE IN FUND BALANCES 18,708 6,053 82,220 3,315 FUND BALANCES, Beginning 29,220 13,170 203,006 12,886 FUND BALANCES, Ending 47,928 $ 19,223 $ 285,226 $ 16,201 $ Year Ended December 31, 2016 SPECIAL REVENUE FUNDS TOWN OF MONUMENT, COLORADO NONMAJOR GOVERNMENTAL FUNDS STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES See the accompanying Independent Auditor's Report. 30 ---PAGE BREAK--- DEBT SERVICE FUND 2016 2015 - $ 61,429 $ 55,962 $ - 47,759 40,532 - 166,051 80,033 157,125 157,125 153,852 - 822 331 - 13,950 6,100 157,125 447,136 336,810 - 621 14,887 - 41,745 39,528 - 155,849 77,513 140,500 140,500 130,000 16,625 16,625 23,875 157,125 355,340 285,803 - 91,796 51,007 - 18,500 - - 110,296 51,007 - 258,282 207,275 - $ 368,578 $ 258,282 $ TOTALS ---PAGE BREAK--- ORIGINAL VARIANCE AND FINAL Positive 2015 BUDGET ACTUAL (Negative) ACTUAL REVENUES Business Licenses 52,000 $ 61,429 $ 9,429 $ 55,962 $ Interest 15 48 33 24 Miscellaneous 8,000 13,950 5,950 6,100 TOTAL REVENUES 60,015 75,427 15,412 62,086 EXPENDITURES Capital Outlay 78,515 75,219 3,296 52,981 TOTAL EXPENDITURES 78,515 75,219 3,296 52,981 EXCESS OF REVENUES OVER (UNDER) EXPENDITURES (18,500) 208 18,708 9,105 OTHER FINANCING SOURCES Transfers In 18,500 18,500 - - NET CHANGE IN FUND BALANCE - 18,708 18,708 9,105 FUND BALANCE, Beginning - 29,220 29,220 20,115 FUND BALANCE, Ending - $ 47,928 $ 47,928 $ 29,220 $ (With Comparative Actual Totals for the Year Ended December 31, 2015) 2016 TOWN OF MONUMENT, COLORADO COMMUNITY DEVELOPMENT FUND BUDGETARY COMPARISON SCHEDULE Year Ended December 31, 2016 See the accompanying Independent Auditor's Report. 31 ---PAGE BREAK--- ORIGINAL VARIANCE AND FINAL Positive 2015 BUDGET ACTUAL (Negative) ACTUAL REVENUES Lottery Revenues 45,000 $ 47,759 $ 2,759 $ 40,532 $ Interest 30 39 9 17 TOTAL REVENUES 45,030 47,798 2,768 40,549 EXPENDITURES Parks and Recreation 45,030 41,745 3,285 39,528 NET CHANGE IN FUND BALANCE - 6,053 6,053 1,021 FUND BALANCE, Beginning - 13,170 13,170 12,149 FUND BALANCE, Ending - $ 19,223 $ 19,223 $ 13,170 $ 2016 (With Comparative Actual Totals for the Year Ended December 31, 2015) TOWN OF MONUMENT, COLORADO CONSERVATION TRUST FUND BUDGETARY COMPARISON SCHEDULE Year Ended December 31, 2016 See the accompanying Independent Auditor's Report. 32 ---PAGE BREAK--- ORIGINAL VARIANCE AND FINAL Positive 2015 BUDGET ACTUAL (Negative) ACTUAL REVENUES Traffic Impact Fees 100,500 $ 102,368 $ 1,868 $ 52,318 $ Interest 500 482 (18) 282 TOTAL REVENUES 101,000 102,850 1,850 52,600 EXPENDITURES Capital Outlay 186,500 20,630 165,870 24,532 NET CHANGE IN FUND BALANCE (85,500) 82,220 167,720 28,068 FUND BALANCE, Beginning 85,500 203,006 117,506 174,938 FUND BALANCE, Ending - $ 285,226 $ 285,226 $ 203,006 $ (With Comparative Actual Totals for the Year Ended December 31, 2015) 2016 TOWN OF MONUMENT, COLORADO TRAFFIC IMPACT FEE FUND BUDGETARY COMPARISON SCHEDULE Year Ended December 31, 2016 See the accompanying Independent Auditor's Report. 33 ---PAGE BREAK--- ORIGINAL VARIANCE AND FINAL Positive 2015 BUDGET ACTUAL (Negative) ACTUAL REVENUES Storm Drainage Impact Fees 77,000 $ 63,683 $ (13,317) $ 27,715 $ Interest 25 253 228 8 TOTAL REVENUES 77,025 63,936 (13,089) 27,723 EXPENDITURES General Government 77,025 621 76,404 14,887 Capital Outlay - 60,000 (60,000) - TOTAL EXPENDITURES 77,025 60,621 16,404 14,887 NET CHANGE IN FUND BALANCE - 3,315 3,315 12,836 FUND BALANCE, Beginning - 12,886 12,886 50 FUND BALANCE, Ending - $ 16,201 $ 16,201 $ 12,886 $ 2016 TOWN OF MONUMENT, COLORADO STORM DRAINAGE IMPACT FEE BUDGETARY COMPARISON SCHEDULE Year Ended December 31, 2016 (With Comparative Actual Totals for the Year Ended December 31, 2015) See the accompanying Independent Auditor's Report. 34 ---PAGE BREAK--- ORIGINAL VARIANCE AND FINAL Positive 2015 BUDGET ACTUAL (Negative) ACTUAL REVENUES Sales Tax 157,125 $ 157,125 $ - $ 153,852 $ TOTAL REVENUES 157,125 157,125 - 153,852 EXPENDITURES Debt Service Principal 140,500 140,500 - 130,000 Interest 16,625 16,625 - 23,875 TOTAL EXPENDITURES 157,125 157,125 - 153,875 NET CHANGE IN FUND BALANCE - - - (23) FUND BALANCE, Beginning - - - 23 FUND BALANCE, Ending - $ - $ - $ - $ 2016 TOWN OF MONUMENT, COLORADO DEBT SERVICE FUND BUDGETARY COMPARISON SCHEDULE Year Ended December 31, 2016 (With Comparative Actual Totals for the Year Ended December 31, 2015) See the accompanying Independent Auditor's Report. 35 ---PAGE BREAK--- ORIGINAL VARIANCE AND FINAL Positive 2015 BUDGET ACTUAL (Negative) ACTUAL REVENUES Charges for Services 1,140,527 $ 1,305,262 $ 164,735 $ 844,733 $ Sales Tax 126,727 176,553 49,826 103,899 Tap Fees 135,000 681,110 546,110 252,470 Lease Proceeds 284,000 321,484 37,484 - Investment Income 868 5,834 4,966 436 Other Revenues 21,740 25,474 3,734 19,958 TOTAL REVENUES 1,708,862 2,515,717 806,855 1,221,496 EXPENDITURES Operations and Maintenance 929,080 925,268 3,812 884,535 Administration and General 106,840 82,191 24,649 141,870 Capital Outlay 434,643 471,825 (37,182) 31,525 Debt Service Principal 276,555 273,661 2,894 208,022 Interest 13,736 16,629 (2,893) 16,222 Transfers Out 42,722 42,722 - - TOTAL EXPENDITURES 1,803,576 1,812,296 (8,720) 1,282,174 NET INCOME, Budget Basis (94,714) $ 703,421 798,135 $ (60,678) GAAP BASIS ADJUSTMENTS Capital Contribution - Other Funds 64,587 367,484 Capital Outlay 471,825 31,525 Depreciation (361,142) (333,074) Proceeds from Capital Leases (321,484) - Principal Paid on Long-Term Debt 273,661 208,022 NET INCOME, GAAP Basis 830,868 213,279 NET POSITION, Beginning 7,466,112 7,252,833 NET POSITION, Ending 8,296,980 $ 7,466,112 $ 2016 TOWN OF MONUMENT, COLORADO WATER FUND BUDGETARY COMPARISON SCHEDULE Year Ended December 31, 2016 (With Comparative Actual Totals for the Year Ended December 31, 2015) See the accompanying Independent Auditor's Report. 36 ---PAGE BREAK--- OTHER INFORMATION ---PAGE BREAK--- Form Approved The public report burden for this information collection is estimated to average 380 hours annually. OMB No. 2125-0032 City or County: YEAR ENDING : December 2016 This Information From The Records Of Town Of Monument Prepared By: Pamela Smith, Town Treasurer Phone: [PHONE REDACTED] A. Local B. Local C. Receipts from D. Receipts from Motor-Fuel Motor-Vehicle State Highway- Federal Highway Taxes Taxes User Taxes Administration 1. Total receipts available 2. Minus amount used for collection expenses 3. Minus amount used for nonhighway purposes 4. Minus amount used for mass transit 5. Remainder used for highway purposes AMOUNT AMOUNT A. Receipts from local sources: A. Local highway disbursements: 1. Local highway-user taxes 1. Capital outlay (from page 2) 419,535 a. Motor Fuel (from Item I.A.5.) 2. Maintenance: (131,323) b. Motor Vehicle (from Item I.B.5.) 3. Road and street services: c. Total a. Traffic control operations 0 2. General fund appropriations 357,618 b. Snow and ice removal 42,166 3. Other local imposts (from page 2) 275,376 c. Other 0 4. Miscellaneous local receipts (from page 2) 63,729 d. Total through 42,166 5. Transfers from toll facilities 0 4. General administration & miscellaneous 89,156 6. Proceeds of sale of bonds and notes: 5. Highway law enforcement and safety 528,067 a. Bonds - Original Issues 0 6. Total (1 through 5) 947,602 b. Bonds - Refunding Issues 0 B. Debt service on local obligations: c. Notes 0 1. Bonds: d. Total + b. + 0 a. Interest 0 7. Total (1 through 6) 696,723 b. Redemption 0 B. Private Contributions 0 c. Total + 0 C. Receipts from State government 2. Notes: (from page 2) 250,878 a. Interest 0 D. Receipts from Federal Government b. Redemption 0 (from page 2) 0 c. Total + 0 E. Total receipts (A.7 + B + C + D) 947,602 3. Total (1.c + 2.c) 0 C. Payments to State for highways 0 D. Payments to toll facilities 0 E. Total disbursements (A.6 + B.3 + C + D) 947,602 Opening Debt Amount Issued Redemptions Closing Debt A. Bonds (Total) 0 0 0 0 1. Bonds (Refunding Portion) 0 0 B. Notes (Total) 0 0 0 A. Beginning Balance B. Total Receipts C. Total Disbursements D. Ending Balance E. Reconciliation 0 947,602 (947,602) 0 Notes and Comments: FORM FHWA-536 (Rev.1-05) PREVIOUS EDITIONS OBSOLETE (Next Page) Town of Monument AND STREET PURPOSES LOCAL HIGHWAY FINANCE REPORT I. DISPOSITION OF HIGHWAY-USER REVENUES AVAILABLE FOR LOCAL GOVERNMENT EXPENDITURE ITEM III. DISBURSEMENTS FOR ROAD V. LOCAL ROAD AND STREET FUND BALANCE ITEM II. RECEIPTS FOR ROAD AND STREET PURPOSES IV. LOCAL HIGHWAY DEBT STATUS (Show all entries at par) ITEM See the accomanying Independent Auditor's Report. 37 ---PAGE BREAK--- STATE: Colorado YEAR ENDING (mm/yy): December 2016 AMOUNT AMOUNT A.3. Other local imposts: A.4. Miscellaneous local receipts: a. Property Taxes and Assesments 0 a. Interest on investments 0 b. Other local imposts: b. Traffic Fines and Penalities 63,729 1. Sales Taxes 0 c. Parking Garage Fees 0 2. Infrastructure & Impact Fees 166,050 d. Parking Meter Fees 0 3. Liens 0 e. Sale of Surplus Property 0 4. Licenses 1,535 f. Charges for Services 0 5. Specific Ownership orOther 107,791 g. Other Misc. Receipts 0 6. Total through 275,376 h. Other 0 c. Total + 275,376 i. Total through 63,729 (Carry forward to page 1) (Carry forward to page 1) AMOUNT AMOUNT C. Receipts from State Government D. Receipts from Federal Government 1. Highway-user taxes 221,959 1. FHWA (from Item I.D.5.) 2. State general funds 2. Other Federal agencies: 3. Other State funds: a. Forest Service 0 a. State bond proceeds b. FEMA 0 b. Project Match c. HUD 0 c. Motor Vehicle Registration 28,919 d. Federal Transit Admin 0 d. Other - (Specify) 0 e. U.S. Corps of Engineers 0 e. Other (Specify) 0 f. Other Federal 0 f. Total through 28,919 g. Total through 0 4. Total + 2. + 3.f) 250,878 3. Total + 2.g) (Carry forward to page 1) ON NATIONAL OFF NATIONAL HIGHWAY HIGHWAY TOTAL SYSTEM SYSTEM A.1. Capital outlay: a. Right-Of-Way Costs 0 0 0 b. Engineering Costs 0 0 0 c. Construction: New Facilities 0 419,535 419,535 Capacity Improvements 0 0 0 System Preservation 0 0 0 System Enhancement & Operation 0 0 0 Total Construction 0 419,535 419,535 d. Total Capital Outlay (Lines 1.a. + 1.b. + 1.c.5) 0 419,535 419,535 (Carry forward to page 1) Notes and Comments: FORM FHWA-536 (Rev.1-05) PREVIOUS EDITIONS OBSOLETE III. DISBURSEMENTS FOR ROAD AND STREET PURPOSES - DETAIL II. RECEIPTS FOR ROAD AND STREET PURPOSES - DETAIL LOCAL HIGHWAY FINANCE REPORT ITEM ITEM ITEM ITEM See the accomanying Independent Auditor's Report. 38