Document Monument_doc_48269d3e1e

Town of Monument, Colorado Financial Statements with Independent Auditor’s Report December 31, 2023 with Comparative Totals for December 31, 2022 ---PAGE BREAK--- TOWN OF MONUMENT, COLORADO Basic Financial Statements December 31, 2023 TOWN COUNCIL Mayor Mitch LaKind Mayor Pro Tem Steve King Councilmember Sana Abbott Councilmember Marco Fiorito Councilmember Kenneth Kimple Councilmember Laura Kronick Councilmember Jim Romanello ADMINISTRATIVE STAFF Mike Foreman – Town Manager Monica Hirjoi – Director of Finance Laura Hogan – Director of Administration April Kroner– Planning Director Patrick Regan – Police Chief Erica Romero - Director of Operations Thomas Tharnish – Public Works Director Madeline VanDenHoek - Director of Parks and Community Partnerships Will Williams - Director of IT ---PAGE BREAK--- Town of Monument, Colorado Table of Contents December 31, 2023 Independent Auditor’s Report 1 Management’s Discussion and Analysis i Basic Financial Statements Government-wide Financial Statements Statement of Net Position 4 Statement of Activities 5 Governmental Funds Balance Sheet 6 Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position 7 Statement of Revenues, Expenditures and Changes in Fund Balance 8 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balance of Governmental Funds to the Statement of Activities 9 Proprietary Fund Statement of Net Position 10 Statement of Revenues, Expenses and Changes in Net Position 11 Statement of Cash Flows 12 Notes to Financial Statements 13 Required Supplementary Information Budgetary Comparison Schedules General Fund 34 2A Water ASD Fund 35 Police Officers Statewide Defined Benefit Pension Plan - FPPA Police Officers Statewide Defined Benefit Pension Plan 36 Notes to Required Supplementary Information 37 Supplementary Information Nonmajor Governmental Funds Combining Balance Sheet 38 Combining Statement of Revenues, Expenditures and Changes in Fund Balance 39 Budgetary Comparison Schedules Capital Projects Fund 40 2F Police Fund 41 Community Development Fund 42 Conservation Trust Fund 43 Traffic Impact Fee Fund 44 (Continued) ---PAGE BREAK--- Town of Monument, Colorado Table of Contents December 31, 2023 (Continued) Supplementary Information (Continued) Budgetary Comparison Schedules (Continued) Storm Drainage Impact Fee Fund 45 Park Fee 46 Water Fund 47 Compliance Section State Compliance Local Highway Finance Report 48 ---PAGE BREAK--- Independent Auditor’s Report Town Council Town of Monument Monument, Colorado Report on the Audit of the Financial Statements Opinions We have audited the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the Town of Monument (the Town), as of and for the year ended December 31, 2023, and the related notes to the financial statements, which collectively comprise the Town’s basic financial statements as listed in the table of contents. In our opinion, the accompanying financial statements present fairly, in all material respects, the respective financial position of governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the Town, as of December 31, 2023, 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. Basis for Opinions We conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS) and the standards applicable to financial audits contained in Government Auditing Standards (GAS), issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the Town and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Denver Office: 750 W. Hampden Avenue, Suite 400 Englewood, Colorado 80110 TEL: [PHONE REDACTED] FAX: [PHONE REDACTED] www.HinkleCPAs.com Office Locations: Colorado Springs, CO Denver, CO Frisco, CO Tulsa, OK ---PAGE BREAK--- Town Council Town of Monument, Colorado Page 2 Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for 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. In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the Town’s ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may rise substantial doubt shortly thereafter. Auditor’s Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS and GAS will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements. In performing an audit in accordance with GAAS and GAS, we:  Exercise professional judgment and maintain professional skepticism throughout the audit.  Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.  Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Town’s internal control. Accordingly, no such opinion is expressed.  Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.  Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the Town’s ability to continue as a going concern for a reasonable period of time. We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control-related matters that we identified during the audit. ---PAGE BREAK--- Town Council Town of Monument, Colorado Page 3 Required Supplementary Information Accounting principles generally accepted in the United States of America require that the required supplementary information listed in the table of contents be presented to supplement the basic financial statements. Such information is the responsibility of management and, 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 Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Town’s basic financial statements. The supplementary information listed in the table of contents is presented for purposes of additional analysis and is not a required part of the basic financial statements. The supplementary information listed in the table of contents 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 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 listed in the table of contents is fairly stated, in all material respects, in relation to the basic financial statements as a whole. Report on Summarized Comparative Information We have previously audited the Town’s financial statements as of and for the year ended December 31, 2022, and we expressed unmodified audit opinions on the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information in our report dated May 26, 2023. In our opinion, the summarized comparative information presented herein as of and for the year ended December 31, 2023, is consistent, in all material respects, with the audited financial statements from which it has been derived. Englewood, Colorado June 13, 2024 ---PAGE BREAK--- Town of Monument, Colorado Management’s Discussion and Analysis December 31, 2023 i 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, 2023. 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 2023 by $52,578,868 (net position).  The Town of Monument’s total net position increased by $8,190,238.  At December 31, 2023, the Town of Monument’s governmental funds reported combined ending fund balances of $20,876,432 an increase of $4,271,040 in comparison with the prior year. Overview of the Financial Statements 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, and 3) notes to the financial statements. This reports also contains other supplementary information in addition to the basic financial statements themselves. Government-wide Financial Statements. The government-wide financial statements are designed to provide readers with a broad overview of the Town of 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, liabilities, and deferred inflows of resources, with the difference 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. 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 are reported in this statement for some items that will only result in cash flows in future fiscal periods uncollected taxes and earned but unused vacation leave). Both 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. ---PAGE BREAK--- Town of Monument, Colorado Management’s Discussion and Analysis December 31, 2023 ii 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. Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike governmental-wide financial statements, governmental fund statements focus on near-term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Most of the Town’s basic services are reported in governmental funds and use the modified accrual basis of accounting. 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 Town’s one proprietary fund is the enterprise fund. Enterprise funds are used to report the same functions presented as business-type activities in the government-wide financial statements. Propriety funds provide the same type of information as the government- wide financial statements, only in more detail. The proprietary fund financial statements provide information for the Town’s water fund. 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. 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 and 2A water funds. These budget comparisons schedules can be found on pages 34 and 35 of this report. The combining and individual fund financial statements and schedules are presented immediately following the required supplementary information. ---PAGE BREAK--- Town of Monument, Colorado Management’s Discussion and Analysis December 31, 2023 iii Government-wide Financial Analysis As previously stated, net assets may serve over time as a useful indicator of a government’s financial position. In the case of the Town of Monument, assets exceeded liabilities by $52,578,868 at the end of 2023 and at the end of 2022 by $44,388,630, resulting in an increase in Total Net Position of $8,190,238. 2023 Government‐ type Activities 2023 Business‐type Activities 2023 TOTAL 2022 TOTAL Current and other assets $24,713,389 $13,415,775 $ 38,129,164 $ 40,061,110 Capital assets, net 9,712,242 29,501,105 39,213,347 29,506,014 Total assets 34,425,631 42,916,880 77,342,511 69,567,124 Long term liabilities 575,268 19,864,515 20,439,783 20,994,800 Other liabilities 2,391,495 798,246 3,189,741 2,865,101 Total liabilities 2,966,763 20,662,761 23,629,524 23,859,901 Deferred Resources Deferred Inflow of Resources 1,662,892 ‐ 1,662,892 1,541,338 Deferred Outflow of Resources 528,773 ‐ 528,773 222,745 Net Position Net investment in capital assets 9,699,264 9,017,520 18,176,784 7,291,394 Restricted 562,609 726,320 1,288,929 980,728 Unrestricted 20,062,876 12,510,279 32,573,155 36,116,508 Total net position $30,324,749 $22,254,119 $52,578,868 $44,388,630 The largest portion of the Town of Monument’s net position $18,716,784 reflects its investment in capital assets (e.g. land, buildings, infrastructure, vehicles, equipment, etc.), less any related outstanding debt 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. A small portion of the Town of Monument’s net position, $1,288,929, represents resources that are subject to external restriction on how they may be used. The remaining unrestricted balance is $32,573,155. ---PAGE BREAK--- Town of Monument, Colorado Management’s Discussion and Analysis December 31, 2023 iv Changes in Net Position The Town’s net position increased $8,190,238 during 2023. Governmental Activities reported an $1,811,804 increase in revenue, with sales tax revenue and Other taxes being the largest contributors. CHANGES IN NET POSITION 2023 Governmental Activities 2023 Business Type Activities 2023 Total 2022 Total Revenues: Program revenues: Charges for Services $911,883 $2,432,420 $3,344,303 $3,177,987 Operating Grants & Contributions 537,338 ‐ 537,338 1,790,863 Capital Grants & Contributions 107,855 3,192,730 3,300,585 3,361,630 General revenues: Property taxes 1,432,144 ‐ 1,432,144 1,346,383 Sales taxes 11,816,525 468,666 12,285,191 10,714,474 Franchise taxes 528,914 ‐ 528,914 492,898 Other Taxes 1,008,391 ‐ 1,008,391 903,848 Investment income 697,995 490,064 1,188,059 367,640 Other Misc 143,160 89,422 232,582 86,335 Transfers (264,291) 264,291 ‐ ‐ Total revenues 16,919,914 6,937,593 23,857,507 22,242,058 Expenses: General government 4,041,802 ‐ 4,041,802 2,694,447 Public safety 4,069,420 ‐ 4,069,420 3,815,031 Public works & parks 3,723,956 ‐ 3,723,956 3,459,713 Capital Outlay 156,944 ‐ 156,944 116,469 Interest on long‐term debt 3,043 591,756 594,799 610,644 Water ‐ 3,080,348 3,080,348 2,445,249 Total expenses 11,995,165 3,672,104 15,667,269 13,153,136 4,924,749 3,265,489 8,190,238 9,088,923 Net position, Beginning of year $25,400,000 18,988,630 44,388,630 35,299,707 Restatement of Beginning Net Position, End of year $30,324,749 $22,254,119 $52,578,868 $44,388,630 ---PAGE BREAK--- Town of Monument, Colorado Management’s Discussion and Analysis December 31, 2023 v Governmental Activities Sales and use taxes are the Town’s largest revenue source at 69%. Property taxes are the second largest revenue source at 8% of the Town’s governmental activities revenue. Other taxes comprise the third largest revenue source of the Town’s at ---PAGE BREAK--- Town of Monument, Colorado Management’s Discussion and Analysis December 31, 2023 vi Business-type Activities Capital grants and contributions account for 46% of the Town’s revenue for business-type activities while charges for services accounted for 35%. Sales taxes and investment income account for 7% each and transfers account for 4% 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. Governmental Funds. The focus of the Town’s governmental funds is to provide information on near-term in-flows, out-flows, and balances of spendable resources. Such information is useful in assessing the Town’s financing requirements. In particular, unassigned fund balance may serve as a useful measure of a government’s net resources available for spending at the end of the fiscal year. As of the end of the current fiscal year, the Town’s governmental funds reported combined ending fund balances of $20,876,432, an increase of $4,271,040 in comparison with the prior year. Of this amount, 36% ($7,559,694) constitutes unrestricted, unassigned fund balance, which is available for spending at the government’s discretion. The remainder of fund balance is categorized to indicate that it is not available for new spending because it is classified as one of the following: A) nonspendable for prepaids ($74,787), B) Restricted for Emergencies ($207,574), C) restricted for parks and recreation ($355,035), or D) committed ($12,679,342). ---PAGE BREAK--- Town of Monument, Colorado Management’s Discussion and Analysis December 31, 2023 vii The general fund is the chief operating fund of the Town. At the end of the current fiscal year, unassigned fund balance of the general fund was $7,559,694 while total fund balance amounted to $7,842,055 The fund balance of the Town’s general fund increased by $1,195,224 during the current fiscal year. Key factors in this change are as follows:  Increase in sales tax collections and investment income over the prior year.  Reduction of expenses for projects that were delayed during the current fiscal year that will be expended in the next fiscal year.  Purposefully working to increase the Town’s General Fund balance reserves. The fund balance of the Town’s 2A water fund increased by $1,120,255 during the current fiscal year. Key factors in this change are as follows:  Increase in sales tax collections and investment income over the prior year.  Capital Projects budgeted were pushed on to a future upcoming year. Proprietary Funds. As of the end of the current fiscal year, the Town’s water fund reported an ending net position of $22,254,119 an increase of $3,265,489 in comparison with the prior year. Of this amount, $12,510,279 constitutes unrestricted net position, which is available for spending. The remainder of net position is categorized to indicate that it is not available for new spending because it is classified as one of the following: A) net investment in capital assets ($9,017,520), or B) restricted for future water storage $726,320. As stated above, the net position of the water fund increased by $3,265,489 during the current fiscal year. Key factors in this change are as follows:  Increase in sales tax collections over the prior year.  Increase in tap fees over the prior year.  Reduction in expenses compared to budget in operations and maintenance. General Fund Budgetary Highlights The Town Council 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 actuals included an increase in fund balance of $1,474,401 versus the final budget. Significant budgetary variances are as follows:  $491,348 additional tax revenue collected over budgeted.  $293,188 reduction in expenses over budgeted ---PAGE BREAK--- Town of Monument, Colorado Management’s Discussion and Analysis December 31, 2023 viii 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, 2023 totaled $39,213,347 (net of accumulated depreciation). Water fund capital assets represent 75% of this total. Major capital asset events during the current fiscal year included the following:  Governmental activities expenditures including $617,861 vehicles and street equipment and $609,618 in street improvements.  Business-type activities including equipment and vehicles $349,202, and wells $296,312. Note 5 of the financial statements provide a detailed summary of the Town’s capital assets. Long-term Debt. At the end of the current fiscal year, the Town had total long-term debt outstanding of $21,129,977. Of this amount, $561,848 was debt of governmental activities while $20,568,129 was debt of business-type activities. The Town’s long-term debt decreased by $674,264 during the current fiscal year. Note 6 of the financial statements provide a detailed summary on the Town’s long-term debt. Economic Factors and Next Year’s Budget The Town considered these factors in preparing the Town’s budget for the 2023 fiscal year:  The economic vitality of the Town  Inflationary effect on expenses  Legislative outlooks 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 Town’s finances. Questions concerning any of the information provided in this report or requests for additional financial information, may 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--- Assets Cash and Investments $ 20,407,143 $ 12,486,409 $ 32,893,552 $ 34,556,318 Restricted Cash and Investments 119,841 726,320 846,161 773,154 Property Taxes Receivable 1,517,337 - 1,517,337 1,225,306 Sales and Other Receivable 2,572,849 - 2,572,849 2,767,563 Accounts Receivable 21,432 203,046 224,478 306,098 Prepaid Expenses 74,787 - 74,787 16,504 Net Pension Asset - - - 416,167 Capital Assets, Not being depreciated 2,182,216 18,388,461 20,570,677 11,213,327 Capital Assets, Net of accumulated depreciation 7,530,026 11,112,644 18,642,670 18,292,687 Total Assets 34,425,631 42,916,880 77,342,511 69,567,124 Deferred Outflows of Resources Deferred Outflows Related to Pensions 528,773 - 528,773 222,745 Liabilities Accounts Payable 1,755,582 18 1,755,600 1,487,783 Accrued Salaries and Benefits 257,401 - 257,401 190,646 Accrued Interest 226 78,914 79,140 83,737 Developer Escrow and Deposits 306,637 15,700 322,337 293,494 Noncurrent Liabilities Due Within One Year 71,649 703,614 775,263 809,441 Due in More Than One Year 490,199 19,864,515 20,354,714 20,994,800 Net Pension Liability 85,069 - 85,069 - Total Liabilities 2,966,763 20,662,761 23,629,524 23,859,901 Deferred Inflows of Resources Deferred Property Taxes 1,517,337 - 1,517,337 1,225,306 Deferred Inflows Related to Pensions 145,555 - 145,555 316,032 Total Deferred Inflows of Resources 1,662,892 - 1,662,892 1,541,338 Net Position Net Investment in Capital Assets 9,699,264 9,017,520 18,716,784 7,291,394 Restricted for Emergencies 207,574 - 207,574 207,574 Restricted for Parks and Recreation 355,035 - 355,035 83,679 Restricted for Future Water Storage - 726,320 726,320 689,475 Unrestricted, Unreserved 20,062,876 12,510,279 32,573,155 36,116,508 Total Net Position $ 30,324,749 $ 22,254,119 $ 52,578,868 $ 44,388,630 2022 Town of Monument, Colorado Statement of Net Position December 31, 2023 With Comparative Totals for December 31, 2022 Total Primary Government Activities Activities 2023 Governmental Business-Type See Notes to the Financial Statements. 4 ---PAGE BREAK--- 2023 2022 Primary Government Governmental Activities General Government $ 4,041,802 $ 357,657 $ 523,038 $ - $ (3,161,107) $ - $ (3,161,107) $ (490,619) Public Safety 4,069,420 50,591 14,300 - (4,004,529) - (4,004,529) (3,754,558) Public Works 2,541,446 363,605 - - (2,177,841) - (2,177,841) (2,072,806) Parks and Recreation 1,182,510 140,030 - 107,855 (934,625) - (934,625) (878,919) Capital Outlay 156,944 - - - (156,944) - (156,944) (116,469) Interest on Long-Term Debt 3,043 - - - (3,043) - (3,043) (11,583) Total Governmental Activities 11,995,165 911,883 537,338 107,855 (10,438,089) - (10,438,089) (7,324,954) Business-Type Activities Water 3,080,348 2,432,420 - 3,192,730 - 2,544,802 2,544,802 3,112,942 Interest on Long-Term Debt 591,756 - - - - (591,756) (591,756) (610,644) Total Business-Type Activities 3,672,104 2,432,420 - 3,192,730 - 1,953,046 1,953,046 2,502,298 Total Primary Government $ 15,667,269 $ 3,344,303 $ 537,338 $ 3,300,585 $ (10,438,089) $ 1,953,046 $ (8,485,043) $ (4,822,656) General Revenues Sales and Use Taxes 11,816,525 468,666 12,285,191 10,714,474 Property Taxes 1,432,144 - 1,432,144 1,346,383 Franchise Taxes 528,914 - 528,914 492,899 Auto Sales Taxes 620,506 - 620,506 540,317 Other Taxes 387,885 - 387,885 363,531 Investment Income 697,995 490,064 1,188,059 367,640 Miscellaneous 143,160 89,422 232,582 86,335 Transfers (264,291) 264,291 - - Total General Revenues and Transfers 15,362,838 1,312,443 16,675,281 13,911,579 Change in Net Position 4,924,749 3,265,489 8,190,238 9,088,923 Net Position, Beginning of Year 25,400,000 18,988,630 44,388,630 35,299,707 Net Position, End of Year $ 30,324,749 $ 22,254,119 $ 52,578,868 $ 44,388,630 Functions/Programs Contributions Grants and Capital Expenses Services Charges for Grants and Contributions Program Revenues Net (Expense) Revenue and Change in Net Position Governmental Activities Business-Type Activities Total Operating Primary Government Town of Monument, Colorado Statement of Activities For the Year Ended December 31, 2023 With Comparative Totals for the Year Ended December 31, 2022 See Notes to the Financial Statements. 5 ---PAGE BREAK--- Assets Cash and Investments $ 7,492,607 $ 2,730,608 $ 8,141,059 $ 1,063,029 $ 979,840 $ 20,407,143 $ 14,730,070 Restricted Cash and Investments - - - - 119,841 119,841 83,679 Property Taxes Receivable 1,517,337 - - - - 1,517,337 1,225,306 Other Taxes Receivable 2,572,849 - - - - 2,572,849 2,767,563 Accounts Receivable 21,432 - - - - 21,432 84,613 Prepaid Expenses 74,787 - - - - 74,787 16,504 Total Assets $ 11,679,012 $ 2,730,608 $ 8,141,059 $ 1,063,029 $ 1,099,681 $ 24,713,389 $ 18,907,735 Liabilities Accounts Payable $ 1,755,582 $ - $ - $ - $ - $ 1,755,582 $ 641,851 Accrued Salaries and Benefits 257,401 - - - - 257,401 167,492 Developer Escrow 306,637 - - - - 306,637 267,694 2,319,620 - - - - 2,319,620 1,077,037 Deferred Inflows of Resources Property Taxes 1,517,337 - - - - 1,517,337 1,225,306 Fund Balance Nonspendable 74,787 - - - - 74,787 16,504 Restricted for Emergencies 207,574 - - - - 207,574 207,574 Restricted for Parks and Recreation - - - - 355,035 355,035 299,058 Committed - 2,730,608 8,141,059 1,063,029 744,646 12,679,342 9,654,888 Unrestricted, Unassigned 7,559,694 - - - - 7,559,694 6,427,368 Total Fund Balance 7,842,055 2,730,608 8,141,059 1,063,029 1,099,681 20,876,432 16,605,392 Total Liabilities, Deferred Inflows of Resources, and Fund Balance $ 11,679,012 $ 2,730,608 $ 8,141,059 $ 1,063,029 $ 1,099,681 $ 24,713,389 $ 18,907,735 Governmental Funds Town of Monument, Colorado Balance Sheet December 31, 2023 With Comparative Totals for December 31, 2022 General Fund 2F Police Funds Governmental Other 2022 Total 2023 2A Water ASD Fund Capital Improvement Fund See Notes to the Financial Statements. 6 ---PAGE BREAK--- Amounts Reported for Governmental Activities in the Statement of Net Position are Different Because: Total Fund Balance of Governmental Funds $ 20,876,432 Capital assets used in governmental activities are not current financial resources and, therefore, are not reported in governmental funds. 9,712,242 Long-term liabilities and related items are not due and payable in the current year and, therefore, are not reported in governmental funds. Capital leases payable (17,182) Accrued interest payable (226) Accrued compensated absences (544,666) Net Pension Asset (Liability) (85,069) Deferred Outflows Related to Pensions 528,773 Deferred Inflows Related to Pensions (145,555) Total Net Position of Governmental Activities $ 30,324,749 Town of Monument, Colorado Reconciliation of Balance Sheet of the Governmental Funds December 31, 2023 to the Statement of Net Position See Notes to the Financial Statements. 7 ---PAGE BREAK--- Revenues Taxes $ 8,475,660 $ 1,480,994 $ 2,478,382 $ 1,963,053 $ - $ 14,398,089 $ 12,526,795 Licenses and Permits 125,981 - - - 81,720 207,701 218,746 Charges for Services 225,226 - - 12,224 380,538 617,988 572,758 Intergovernmental 100,407 674,693 - - 279,281 1,054,381 2,283,843 Court 50,591 - - - - 50,591 53,331 Investment Income 471,792 5,439 209,035 - 11,729 697,995 121,032 Contributions and Donations - - - 12,685 1,615 14,300 7,142 Miscellaneous 17,756 - - 104,904 20,500 143,160 134,575 Total Revenues 9,467,413 2,161,126 2,687,417 2,092,866 775,383 17,184,205 15,918,222 Expenditures Current General Government 3,439,672 - - - 150,264 3,589,936 2,758,448 Public Safety 126,108 - - 4,081,300 - 4,207,408 3,839,268 Public Works 1,498,617 491,326 274,004 - - 2,263,947 2,294,495 Parks and Recreation 1,376,234 - - - 188 1,376,422 1,144,001 Capital Outlay - 415,046 21,758 - 501,506 938,310 390,657 Debt Service Principal 33,483 - - 158,895 - 192,378 114,132 Interest and Fiscal Charges 1,329 - - 6,311 - 7,640 9,764 Total Expenditures 6,475,443 906,372 295,762 4,246,506 651,958 12,576,041 10,550,765 Excess Revenues Over (Under) Expenditures 2,991,970 1,254,754 2,391,655 (2,153,640) 123,425 4,608,164 5,367,457 Other Financing Sources (Uses) Transfers In 954,276 - - 2,633,022 118,000 3,705,298 3,318,118 Transfers Out (2,751,022) - (1,271,400) - (20,000) (4,042,422) (3,987,222) Other Financing Sources (Uses) (1,796,746) - (1,271,400) 2,633,022 98,000 (337,124) (669,104) Net Change in Fund Balance 1,195,224 1,254,754 1,120,255 479,382 221,425 4,271,040 4,698,353 Fund Balance, Beginning of Year 6,646,831 1,475,854 7,020,804 583,647 878,256 16,605,392 11,907,039 Fund Balance, End of Year $ 7,842,055 $ 2,730,608 $ 8,141,059 $ 1,063,029 $ 1,099,681 $ 20,876,432 $ 16,605,392 Capital Improvement Fund 2F Police Fund General Fund ASD Town of Monument, Colorado Statement of Revenues, Expenditures and Changes in Fund Balance Governmental Funds For the Year Ended December 31, 2023 With Comparative Totals for the Year Ended December 31, 2022 2A Water Other Governmental Funds 2022 Total 2023 See Notes to the Financial Statements. 8 ---PAGE BREAK--- Amounts Reported for Governmental Activities in the Statement of Activities are Different Because: Net Change in Fund Balance of Governmental Funds $ 4,271,040 Capital outlays to purchase or construct capital assets are reported in governmental funds as expenditures. However, for governmental activities those costs are capitalized in the statement of net position and are allocated over their estimated useful lives as annual depreciation expense in the statement of activities. Capital Outlays 1,858,474 Depreciation Expense (1,187,511) Repayments of long-term liabilities are expenditures in governmental funds, but they reduce long-term liabilities in the statement of net position and do not affect the statement of activities. Principal payments on capital leases 192,378 Change in Interest payable 4,597 Change in accrued compensated absences (189,498) Change in Pension Asset (501,236) Change in Deferred Inflows Related to Pensions 170,477 Change in Deferred Outflows Related to Pensions 306,028 Change in Net Position of Governmental Activities $ 4,924,749 Town of Monument, Colorado Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balance of Governmental Funds to the Statement of Activities For the Year Ended December 31, 2023 See Notes to the Financial Statements. 9 ---PAGE BREAK--- Assets Current Assets Cash and Investments $ 12,486,409 $ 19,826,248 Restricted Cash and investments 726,320 689,475 Accounts Receivable 203,046 221,485 Total Current Assets 13,415,775 20,737,208 Noncurrent Assets Capital Assets, not being depreciated 18,388,461 8,409,752 Capital Assets, net of accumulated depreciation 11,112,644 11,213,152 Total Noncurrent Assets 29,501,105 19,622,904 Total Assets 42,916,880 40,360,112 Liabilities Current Liabilities Accounts Payable 18 4,101 Accrued Liabilities - 23,154 Accrued Compensated Absences, Current portion 8,454 7,728 Accrued Interest Payable 78,914 78,914 Certificates of Participation, Current Portion 695,160 681,408 Total Current Liabilities 782,546 795,305 Noncurrent Liabilities Deposits 15,700 25,800 Accrued Compensated Absences 76,090 68,556 Leases payable 19,788,425 20,481,821 Total Noncurrent Liabilities 19,880,215 20,576,177 Total Liabilities 20,662,761 21,371,482 Net Position Net Investment in Capital Assets 9,017,520 (1,540,325) Restricted for Future Water Storage 726,320 689,475 Unrestricted 12,510,279 19,839,480 Total Net Position $ 22,254,119 $ 18,988,630 Town of Monument, Colorado Statement of Net Position Proprietary Fund December 31, 2023 2022 2023 With Comparative Totals for December 31, 2022 See Notes to the Financial Statements. 10 ---PAGE BREAK--- Operating Revenues Charges for Services $ 2,432,420 $ 2,292,841 Miscellaneous 89,422 92,269 Total Operating Revenues 2,521,842 2,385,110 Operating Expenses Operations and Maintenance 2,093,710 1,561,813 Administrative and General 235,856 156,154 Depreciation 823,615 727,282 Total Operating Expenses 3,153,181 2,445,249 Net Operating Income (631,339) (60,139) Non-Operating Revenues (Expenses) Sales Taxes 468,666 567,278 Interest Income 490,064 246,608 Interest Expense (591,756) (610,644) Gain on Sale of Assets - 499 Net Income (Loss) Before Contributed Capital (264,365) 143,602 Contributed Capital and Transfers Tap Fees 3,192,730 3,265,350 Transfers In 1,271,400 1,271,200 Transfers Out (934,276) (602,096) Total Capital Contributions and Transfers 3,529,854 3,934,454 Change in Net Position 3,265,489 4,078,056 Net Position, Beginning of Year 18,988,630 14,910,574 Net Position, End of Year $ 22,254,119 $ 18,988,630 2022 2023 With Comparative Totals for the Year Ended December 31, 2022 Town of Monument, Colorado Statement of Revenues, Expenses and Changes in Net Position Proprietary Fund For the Year Ended December 31, 2023 See Notes to the Financial Statements. 11 ---PAGE BREAK--- Cash Flows From Operating Activities Cash Received from Customers $ 2,450,859 $ 2,309,908 Cash Received from Others 89,422 92,269 Cash Paid to Suppliers (1,429,891) (1,521,561) Cash Paid to Employees (918,652) (759,913) Net Cash Provided by Operating Activities 191,738 120,703 Cash Flows From Non-Capital Financing Activities Sales Tax Received 468,666 567,278 Transfer from Other Funds 1,271,400 1,271,200 Transfer to Other Funds (934,276) (602,096) Net Cash Provided by Noncapital Financing Activities 805,790 1,236,382 Cash Flows From Capital and Related Financing Activities Tap fees received 3,192,730 3,265,350 Acquisition and Construction of Capital Assets (10,701,816) (5,517,148) Deposit Received from Customers (10,100) 12,700 Proceeds from Sale of Assets - 499 Debt Principal Payments (679,644) (660,556) Debt Interest Payments (591,756) (610,644) Net Cash Used by Capital and Related Financing Activities (8,790,586) (3,509,799) Cash Flows From Investing Activities Interest received 490,064 246,608 Net Cash Used by Capital and Related Financing Activities 490,064 246,608 Net Change in Cash and Cash Equivalents (7,302,994) (1,906,106) Cash and Cash Equivalents, Beginning of Year 20,515,723 22,421,829 Cash and Cash Equivalents, End of Year $ 13,212,729 $ 20,515,723 Reconciliation of Net Operating Income to Net Cash Provided by Operating Activities: Net Operating Income $ (631,339) $ (60,139) Adjustments to Reconcile Net Operating Income to Net Cash Provided by Operating Activities Depreciation Expense 823,615 727,282 Changes in Assets and Liabilities Related to Operations Accounts Receivable 18,439 17,067 Accounts Payable (4,083) (557,244) Accrued Expenses (23,154) (17,844) Accrued Compensated Absences 8,260 11,581 Net Cash Provided by Operating Activities $ 191,738 $ 120,703 2022 2023 With Comparative Totals for the Year Ended December 31, 2022 Town of Monument, Colorado Statement of Cash Flows Proprietary Fund For the Year Ended December 31, 2023 See Notes to the Financial Statements. 12 ---PAGE BREAK--- Town of Monument, Colorado Notes to Financial Statements December 31, 2023 13 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. The 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 the 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. 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. ---PAGE BREAK--- Town of Monument, Colorado Notes to Financial Statements December 31, 2023 14 Note 1: Summary of Significant Accounting Policies (Continued) 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. 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 Capital Improvement Fund is used for the acquisition or construction of major capital facilities and/or assets (other than those financed by proprietary funds). Major capital projects are funded with a portion of sales, highway user’s, and road and bridge taxes. ---PAGE BREAK--- Town of Monument, Colorado Notes to Financial Statements December 31, 2023 15 Note 1: Summary of Significant Accounting Policies (Continued) Measurement Focus, Basis of Accounting, and Financial Statement Presentation (Continued) The 2A Water ASD Fund accounts for the revenues collected from a 1% sales tax restricted for expenditures allocated for water projects by citizen election. The 2F Police Fund accounts for the revenues and expenditures allocated for the Town’s police department. 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 or aggregate group 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, 2023 16 Note 1: Summary of Significant Accounting Policies (Continued) Measurement Focus, Basis of Accounting, and Financial Statement Presentation (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 at a maximum amount ranging from 96 hours to 360 hours, based on length of service at their current rate of pay. Unused sick time will be compensated at a maximum of 120 hours 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, 2023 17 Note 1: Summary of Significant Accounting Policies (Continued) Measurement Focus, Basis of Accounting, and Financial Statement Presentation (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 Town Council. These amounts cannot be used for any other purpose unless the Town Council 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, 2023. 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. ---PAGE BREAK--- 18 Town of Monument, Colorado Notes to Financial Statements December 31, 2023 Note 1: Summary of Significant Accounting Policies (Continued) Measurement Focus, Basis of Accounting, and Financial Statement Presentation (Continued) 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. 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. The Town has evaluated subsequent events through June 13, 2024, the date the financial statements were available to be issued. 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. ---PAGE BREAK--- Town of Monument, Colorado Notes to Financial Statements December 31, 2023 19 Note 3: Cash and Investments A summary of deposits and investments as of December 31, 2023 follows: At December 31, 2023, cash and investments consisted of the following: 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. 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, 2023, the Town had deposits with financial institutions with a carrying amount of $12,336,655. The bank balances with the financial institutions totaling $12,655,675 of which $250,000 were covered by the FDIC and $12,175,777 were collateralized with securities held by the financial institution’s agent but not in the Town’s name. Investments The Town does not have a formal investment policy; however, the Town follows state statutes regarding investments. The Town generally limits its concentration risk of investments to Local Government Investment Pools, obligations of the United States and certain U.S. government agency securities, which are believed to have minimal credit risk, minimal interest rate risk and no foreign currency risk. Additionally, the Town is not subject to concentration of risk for investments that are in the possession of another party. Colorado revised statutes limit investment maturities to five years or less unless formally approved by the Town Council. Such actions are generally associated with a debt service reserve or sinking fund requirements. State statutes specify investment instruments meeting defined rating, maturity, and concentration risk criteria in which local governments may invest, which include the following.  Obligations of the United States & certain U.S. government agency securities Petty Cash $ 1,350 Cash Deposits 12,336,655 Investments 21,401,708 Total $ 33,739,713 Cash and Investments $ 32,893,552 Restricted Cash and Investments 846,161 Total $ 33,739,713 ---PAGE BREAK--- Town of Monument, Colorado Notes to Financial Statements December 31, 2023 20 Note 3: Cash and Investments (Continued) Investments (Continued)  Certain international 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 At December 31, 2023, the Town had the following investments: The Town invested in the Colorado Local Government Liquid Asset Trust (Colotrust) (the Trust), an investment vehicle established for local government entities in Colorado to pool surplus funds. The State Securities Commissioner administers and enforces all State statutes governing the Trust. The Trust operates similarly to a money market fund and each share is equal in value to $1.00. The Trust offers shares in two portfolios, Colotrust PRIME and Colotrust PLUS+. Both portfolios may invest in U.S. Treasury securities and repurchase agreements collateralized by U.S. Treasury securities. Colotrust PLUS+ may also invest in certain obligations of U.S. government agencies, highest rates commercial paper and any security allowed under CRS 24- 75-601. A designated custodial bank serves as custodian for the Trust’s investment portfolios and provides services as the depository in connection with direct investments and withdrawals. The custodian’s internal records segregate investments owned by the Trust. Colotrust is rated AAAm by Standard & Poor’s. Colotrust records its investments at fair value and the Town records its investment in Colotrust using the net asset value method. There are no unfunded commitments, the redemption frequency is daily and there is no redemption notice period. Interest Rate Risk - State statutes generally limit investments to an original maturity of five years unless the governing board authorizes the investment for a period in excess of five years. The Town does not have a policy for managing credit risk or interest rate risk. Restricted Cash Cash is restricted for the following purposes: Future Water Storage - Water Fund $ 726,320 Parks and Recreation - Conservation Trust Fund 119,841 Total $ 846,161 Maturity Weighted Average Colotrust under 60 days $ 10,967,510 Piper Sandler One year or less 10,000,000 Certificates of Deposits One year or less 434,198 $ 21,401,708 2023 ---PAGE BREAK--- Town of Monument, Colorado Notes to Financial Statements December 31, 2023 21 Note 3: Cash and Investments (Continued) Investments (Continued) Future Water Storage - The Town has restricted $726,320 of the Water Fund’s cash balance for future water storage in relation to an intergovernmental agreement. The Town also restricted net position for future water storage in relation to this agreement. Parks and Recreation - The Town has restricted cash of $119,841 in the Conservation Trust Fund for future parks and recreation expenditures. Note 4: Interfund Transfers Interfund transfers for the year ended December 31, 2023, consisted of the following: During the year ended December 31, 2023, the Water Fund transferred amounts to the General Fund for administrative costs and fees. 2F Police Fund General Fund $ 2,633,022 Water Fund 2A Water ASD Fund 1,271,400 General Fund Water Fund 934,276 Community Development Fund General Fund 63,000 Storm Drainage Impact Fee Fund General Fund 55,000 General Fund Conservation Trust Fund 20,000 Total $ 4,976,698 Transfers In Transfers Out Amount ---PAGE BREAK--- Town of Monument, Colorado Notes to Financial Statements December 31, 2023 22 Note 5: Capital Assets Capital assets activity for the year ended December 31, 2023 is summarized below: Governmental Activities Capital Assets, Not Being Depreciated Land $ 1,767,122 $ 220,472 $ - $ 1,987,594 Construction in Progress 194,622 - - 194,622 Total Capital Assets, Not Being Depreciated 1,961,744 220,472 - 2,182,216 Capital Assets, Being Depreciated Buildings 3,945,216 75,196 - 4,020,412 Infrastructure 8,367,154 - - 8,367,154 Water Rights 135,324 - - 135,324 Furniture and Equipment 671,133 118,327 - 789,460 Vehicles and Street Equipment 2,344,427 617,861 - 2,962,288 Park Improvements 666,382 217,000 - 883,382 Street Improvements 6,898,454 609,618 - 7,508,072 Total Capital Assets, Being Depreciated $ 23,028,090 $ 1,638,002 $ - $ 24,666,092 Less Accumulated Depreciation Buildings $ (1,978,816) $ (139,699) $ - $ (2,118,515) Infrastructure (6,310,026) (276,265) - (6,586,291) Water Rights (37,282) (2,707) - (39,989) Furniture and Equipment (599,184) (42,430) - (641,614) Vehicles and Street Equipment (1,442,993) (206,871) - (1,649,864) Park Improvements (531,488) (33,751) - (565,239) Street Improvements (5,048,766) (485,788) - (5,534,554) Total Accumulated Depreciation (15,948,555) (1,187,511) - (17,136,066) Total Capital Assets, Being Depreciated, net 7,079,535 450,491 - 7,530,026 Governmental Activities Capital Assets, net $ 9,041,279 $ 670,963 $ - $ 9,712,242 Balance Balance 12/31/22 Additions Deletions 12/31/23 ---PAGE BREAK--- Town of Monument, Colorado Notes to Financial Statements December 31, 2023 23 Note 5: Capital Assets (Continued) Depreciation expense was charged to functions/programs of the Town as follows: Governmental Activities General Government $ 237,637 Public Safety 95,614 Public Works 805,705 Parks and Recreation 48,555 Total $ 1,187,511 ---PAGE BREAK--- Town of Monument, Colorado Notes to Financial Statements December 31, 2023 24 Note 5: Capital Assets (Continued) Capital assets Business-Type activity for the year ended December 31, 2023 is summarized below: Business-Type Activities Capital Assets, Not Being Depreciated Water Master Plan $ 664,971 $ - $ - $ 664,971 Construction in Progress 5,628,255 9,393,398 (256,520) 14,765,133 Monument Dam 2,958,357 - - 2,958,357 Total Capital Assets, Not Being Depreciated 9,251,583 9,393,398 (256,520) 18,388,461 Capital Assets, Being Depreciated Water Rights 125,000 - - 125,000 Alluvium Wells 420,392 - - 420,392 Public Works Buildings 1,289,644 - - 1,289,644 Iron Treatment Plant 287,854 - - 287,854 Water Treatment Plant 1,199,322 - - 1,199,322 Other Equipment 1,399,211 77,593 - 1,476,804 Slabaugh Well 191,390 - - 191,390 Wells/Treatment 15,092,344 296,312 - 15,388,656 Transmission & Distribution 2,731,482 - - 2,731,482 Equipment and Vehicles 595,706 349,202 - 944,908 Total Capital Assets, Being Depreciated 23,332,345 723,107 - 24,055,452 Total Capital Assets 32,583,928 10,116,505 (256,520) 42,443,913 Less: Accumulated depreciation Water Rights (72,500) (2,500) - (75,000) Alluvium Wells (410,563) (2,456) - (413,019) Public Works Buildings (107,318) (43,827) - (151,145) Iron Treatment Plant (287,854) - - (287,854) Water Treatment Plant (666,811) (39,977) - (706,788) Other Equipment (1,119,298) (94,382) - (1,213,680) Slabaugh Well (116,752) (3,828) - (120,580) Wells/Treatment (6,922,146) (476,986) - (7,399,132) Transmission & Distribution (2,065,778) (80,054) - (2,145,832) Equipment and Vehicles (350,173) (79,605) - (429,778) (12,119,193) (823,615) - (12,942,808) Business-Type Activities Capital Assets, net $ 20,464,735 $ 9,292,890 $ (256,520) $ 29,501,105 Balance Additions 12/31/22 12/31/23 Deletions Balance ---PAGE BREAK--- Town of Monument, Colorado Notes to Financial Statements December 31, 2023 25 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, 2023. Accrued Compensated Absences are being paid from resources generated by the General Fund. Leases The Town has entered into several lease agreements to purchase vehicles and equipment which will be paid from revenues of the General Fund. These leases require interest to be paid ranging from 3.20% to 3.48%. These leases mature from 2024 - 2025. Following is a schedule of the future minimum lease payments required under the outstanding lease obligations at December 31, 2023: Business-Type Activities Following is a summary of long-term debt transactions for the business-type activities for the year ended December 31, 2023. Governmental Activities Long-term leases $ 209,560 $ - $ (192,378) $ 17,182 $ 17,182 Compensated Absences 355,168 209,695 (20,197) 544,666 54,467 Total $ 564,728 $ 209,695 $ (212,575) $ 561,848 $ 71,649 Due Within 12/31/22 Additions Deletions 12/31/23 One Year Balance Balance Year Ended December 31, 2024 $ 17,406 Total Future Minimum Lease Payments 17,406 Less: Interest (224) Present Value of Future Minimum Lease Payments $ 17,182 Total Business-Type Activities Certificates of Participation $ 18,910,000 $ - $ (515,000) $ 18,395,000 $ 535,000 Premium 2,253,229 - (164,644) 2,088,585 160,160 Compensated Absences 76,284 10,183 (1,923) 84,544 8,454 Total $ 21,239,513 $ 10,183 $ (681,567) $ 20,568,129 $ 703,614 One Year Balance Balance Due Within 12/31/22 Additions 12/31/23 Deletions ---PAGE BREAK--- Town of Monument, Colorado Notes to Financial Statements December 31, 2023 26 Note 6: Long-Term Debt (Continued) Business-Type Activities (Continued) In November 2020, the Town entered into an annually-renewable lease purchase agreement with BOKF NA for the purpose of financing the acquisition, construction and installation of water improvements. Certificates of Participation were sold to investors, with the net proceeds of $19,840,000. While the lease does not constitute an indebtedness of the Town for state law purposes because it is subject to annual appropriation, it is treated as a capital lease for financial reporting purposes pursuant to generally accepted accounting principles applicable to governmental units. Payments of the principal component are due annually on December 1, through 2045. The interest component accrues at 4.0% and is payable semiannually on June 1st and December 1st. The following schedule represents the Town’s debt service requirements to maturity for the outstanding participation debt at December 31, 2023. 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, 2023, the Town contributions were $386,524 equal to the required contribution. The deferred compensation is not available to employees until termination, retirement, death, or unforeseeable emergency. Year Ended December 31, 2024 $ 535,000 735,800 $ 1,270,800 2025 560,000 714,400 1,274,400 2026 580,000 692,000 1,272,000 2027 605,000 668,800 1,273,800 2028 630,000 644,600 1,274,600 2029 - 2033 3,540,000 2,824,800 6,364,800 2034 - 2038 4,305,000 2,058,200 6,363,200 2039 - 2043 5,240,000 1,125,000 6,365,000 2044 - 2045 2,400,000 145,000 2,545,000 $ 18,395,000 $ 9,608,600 $ 28,003,600 Principle Interest Total ---PAGE BREAK--- Town of Monument, Colorado Notes to Financial Statements December 31, 2023 27 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. Note 9: Commitments and Contingencies Litigation The Town is not involved in any pending and threatened litigation as of December 31, 2023. 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 through 2019, notwithstanding the provisions of the Amendment. No such election took place during 2020 to continue this provision, but revenues for 2020 remained in compliance with TABOR limitations. The Town has established an emergency reserve, representing 3% of qualifying expenditures, as required by the Amendment. At December 31, 2023, the emergency reserve of $207,574 was recorded in the General Fund. ---PAGE BREAK--- Town of Monument, Colorado Notes to Financial Statements December 31, 2023 28 Note 10: Defined Benefit Pension Plan General Information Plan Description - Eligible employees of the Town are provided with pensions through the SWDB, a cost-sharing multiple-employer defined benefit pension plan administered by FFPA. FFPA issues a publicly available annual comprehensive financial report that can be obtained at http://www.FPPAco.org. Benefits Provided - A member is eligible for a normal retirement pension once the member has completed twenty-five years of credited service and has attained the age of 55. Effective January 1, 2021, a member may also qualify for a normal retirement pension if the member's combined years of service and age equals at least 80, with a minimum age of 50 (Rule of 80). The annual normal retirement benefit is 2 percent of the average of the member’s highest three years’ pensionable earnings for each year of credited service up to ten years, plus 2.5 percent for each year of service thereafter. The benefit earned prior to January 1, 2007 for members of affiliated Social Security employers will be reduced by the amount of Social Security income payable to the member annually. Effective January 1, 2007, members covered under Statewide Defined Benefit Social Security Component will receive half the benefit when compared to the Statewide Defined Benefit Plan. Benefit adjustments paid to retired members are evaluated annually and may be re-determined every October 1. The amount of any increase is based on the Board’s discretion and can range from 0 to the higher of 3 percent or the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). A member is eligible for an early retirement after completion of 30 years of service or attainment of age 50 with at least five years of credited service. The early retirement benefit equals the normal retirement benefit reduced on an actuarially equivalent basis. Upon termination, an employee may elect to have member contributions, along with 5 percent as interest, returned as a lump sum distribution. Alternatively, a member with at least five years of accredited service may leave contributions with the Plan and remain eligible for a retirement pension at age 55 equal to 2 percent of the member’s average highest three years’ pensionable earnings for each year of credited service up to ten years, plus 2.5 percent for each year of service thereafter. Contributions - Contribution rates for employers and members may be increased equally by the FPPA Board of Directors upon approval through an election by both the employers and members. In 2014, the members elected to increase the member contribution rate to the SWDB plan beginning in 2015. Member contribution rates increased 0.5 percent annually through 2022 to a total of 12 percent of pensionable earnings. Employer contributions increase 0.5 percent annually beginning in 2021 through 2030 to a total of 13.0 percent of pensionable earnings. In 2022, members of the SWDB plan and their employers are contributing at the rate of 12.0 percent and 9.0 percent, respectively, of pensionable earnings for a total contribution rate of 21.0 percent. ---PAGE BREAK--- Town of Monument, Colorado Notes to Financial Statements December 31, 2023 29 Note 10: Defined Benefit Pension Plan (Continued) General Information (Continued) Contributions from members and employers of departments reentering the system are established by resolution and approved by the FPPA Board of Directors. The member and employer contribution rates will increase through 2030 as described above for the non-reentering departments. Effective January 1, 2021, reentry departments may submit a resolution to the FPPA Board of Directors to reflect the actual cost of reentry by department. Each reentry department is responsible to remit contributions to the plan in accordance with their most recent FPPA Board of Directors approved resolution. The contribution rate for members and employers of affiliated social security employers is 6.0 percent and 4.5 percent, respectively, of pensionable earnings for a total contribution rate of 10.5 percent in 2021. Per the 2014 member election, members of the affiliate social security group had their required contribution rate increase 0.25 percent annually beginning in 2015 through 2022 to a total of 6.0 percent of pensionable earnings. Employer contributions will increase 0.25 percent annually beginning in 2021 through 2030 to a total of 6.5 percent of pensionable earnings. Pension Liabilities, Pension Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions The collective total pension liability as of December 31, 2022 is based upon the January 1, 2023 actuarial valuation. The actuarially determined contributions as of December 31, 2022 are based upon the January 1, 2022 actuarial valuation. At December 31, 2023, the Town reported a liability of $85,069 for its proportionate share of the net pension liability. At December 31, 2022, the Town’s proportion was 0.[PHONE REDACTED]%, which was an increase of 0.[PHONE REDACTED]% from its proportion measured as of December 31, 2021. ---PAGE BREAK--- Town of Monument, Colorado Notes to Financial Statements December 31, 2023 30 Note 10: Defined Benefit Pension Plan (Continued) Pension Liabilities, Pension Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions (Continued) For the year ended December 31, 2023, the Town recognized pension expense of $29,669. At December 31, 2023, the Town reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: The Town’s contributions of $87,777 subsequent to the measurement date will be recognized as a reduction to the net pension liability in the subsequent fiscal year. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized as pension expense as follows: Differences between expected and actual experience $ 148,279 $ 8,773 Changes of assumptions and other inputs 88,209 - Net difference between projected and actual earnings on plan investments 202,667 - Changes in proportion 1,841 136,782 Contributions subsequent to the measurement date 87,777 - Total $ 528,773 $ 145,555 Deferred Outflows of Resources Deferred Inflows of Resources Year Ended December 31, 2024 $ 53,041 2025 84,655 2026 129,592 2027 10,515 2028 8,316 Thereafter 9,322 Total $ 295,441 Total ---PAGE BREAK--- Town of Monument, Colorado Notes to Financial Statements December 31, 2023 31 Note 10: Defined Benefit Pension Plan (Continued) Pension Liabilities, Pension Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions (Continued) Actuarial Assumptions - The actuarial valuation as of December 31, 2022 determined the total pension asset using the following actuarial assumptions and other inputs. For determining the total pension liability, the post-retirement mortality tables for non-disabled retirees uses the Pub-2010 Safety Healthy Annuitant Mortality Tables projected with the ultimate values of the MP-2020 projection scale. The pre-retirement off-duty mortality tables are adjusted to 60% of the MP-2020 mortality tables for active employees. The on-duty mortality rate is 0.00015. For determining the actuarially determined contributions, the post-retirement mortality tables for non-disabled retirees uses the 2006 central rates from the RP-2014 Annuitant Mortality Tables projected to 2018 using the MP-2017 projection scales, and the projected prospectively using the ultimate rates of the scale for all years. The preretirement off-duty mortality tables are adjusted to 50% of the RP-2014 mortality tables for active employees. The on-duty mortality rate is 0.00015. At least every five years the FPPA’s Board of Directors, in accordance with best practices, reviews its economic and demographic actuarial assumptions. At its July 2022 meeting, the Board of Directors reviewed and approved recommended changes to the actuarial assumptions. The recommendations were made by the FPPA’s actuaries, Gabriel, Roeder, Smith & Company, based upon their analysis of past experience and expectations of the future. The assumption changes were effective for actuarial valuations beginning January 1, 2023. The actuarial assumptions impact actuarial factors for benefit purposes such as purchases of service credit and other benefits where actuarial factors are used. Investment rate of return, compounded annually, net of plan investment expenses, including inflation 7.0% Inflation 2.5% Projected Salary Increases 4.25% - 11.25% Cost of Living Adjustments (COLA) 0.0% ---PAGE BREAK--- Town of Monument, Colorado Notes to Financial Statements December 31, 2023 32 Note 10: Defined Benefit Pension Plan (Continued) Pension Liabilities, Pension Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions (Continued) The long-term expected rate of return on pension plan investments was determined using a building-block method in which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighing the expected future real rates of return by the target asset allocation percentage and by adding expected inflation (assumed at 2.5 percent). Best estimates of arithmetic real rates of return for each major asset class included in the Fund’s target asset allocation as of December 31, 2022 are summarized in the following table: The discount rate used to measure the total pension liability was 7.00 percent. The projection of cash flows used to determine the discount rate assumed that contributions from participating employers will be made based on the actuarially determined rates based on the Board’s funding policy, which establishes the contractually required rates under Colorado statutes. Based on those assumptions, the SWDB plan fiduciary net position was projected to be available to make all the projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability. Discount Rate - Projected benefit payments are required to be discounted to their actuarial present values using a single discount rate that reflects a long-term expected rate of return on pension plan investments (to the extent that the plan’s fiduciary net position is projected to be sufficient to pay benefits) and tax-exempt municipal bond rate based on an index of 20-year general obligation bonds with an average AA credit rating as of the measurement date (to the extent that the plan’s projected fiduciary net position is not sufficient to pay benefits). Asset Class Global Equity 35% 8.93% Equity Long/Short 6% 7.47% Private Markets 34% 10.31% Fixed Income - Rates 10% 5.45% Fixed Income - Credit 5% 6.90% Absolute Return 9% 6.49% Cash 1% 3.92% Total 100% Target Allocation Long-Term Expected Rate of Return ---PAGE BREAK--- Town of Monument, Colorado Notes to Financial Statements December 31, 2023 33 Note 10: Defined Benefit Pension Plan (Continued) Pension Liabilities, Pension Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions (Continued) For the purpose of this valuation, the expected rate of return on pension plan investments is 7.00 percent; the municipal bond rate is 4.05 percent (based on the weekly rate closest to but not later than the measurement date of the “state & local bonds” rate from Federal Reserve statistical release and the resulting single discount rate is 7.00 percent. Regarding the sensitivity of the net pension liability/(asset) to changes in the single discount rate, the following presents the plan’s net pension liability/(asset), calculated using a single discount rate of 7.00 percent, as well as what the plan’s net pension liability/(asset) would be if it were calculated using a single discount rate that is one percent lower or one percent higher: Note 11: Restatement of Prior Year Balances Restatement of December 31, 2022 Assets and Liabilities to record Construction in Progress that was not recorded. Town's proportionate share of the net pension liability (asset) $ 586,452 $ 85,069 $ (330,239) 1% Decrease (6.00%) Current Discount Rate (7.00%) 1% Increase (8.00%) Business Type Activities Statement of Net Position Assets $ 40,360,112 $ 841,831 $ 41,201,943 Liabilties 21,371,482 841,831 22,213,313 Net Position $ 18,988,630 $ - $ 18,988,630 2022 Balances Asset 2022 Balances as Reported Restatement as Restated ---PAGE BREAK--- Required Supplementary Information ---PAGE BREAK--- Revenues Taxes $ 6,561,149 $ 7,984,312 $ 8,475,660 $ 491,348 $ 7,737,441 Licenses and Permits 67,750 67,750 125,981 58,231 134,256 Charges for Services 338,975 138,975 225,226 86,251 198,821 Intergovernmental 903,451 903,451 100,407 (803,044) 1,109,900 Court 70,000 70,000 50,591 (19,409) 53,331 Interest 5,000 250,000 471,792 221,792 44,065 Miscellaneous 5,750 5,750 17,756 12,006 70,975 Total Revenues 7,952,075 9,420,238 9,467,413 47,175 9,348,789 Expenditures Current General Government 3,659,697 3,489,833 3,439,672 50,161 2,556,476 Public Safety 151,744 151,744 126,108 25,636 52,985 Public Works 1,681,440 1,681,440 1,498,617 182,823 1,338,057 Parks and Recreation 1,015,802 1,015,802 1,376,234 (360,432) 1,142,970 Capital Outlay 395,000 395,000 - 395,000 - Debt Service Principal 33,483 33,483 33,483 - 32,066 Interest 1,329 1,329 1,329 - 2,746 Total Expenditures 6,938,495 6,768,631 6,475,443 293,188 5,125,300 Excess Revenues Over (Under) Expenditures 1,013,580 2,651,607 2,991,970 340,363 4,223,489 Other Financing Sources (Uses) Transfers In 20,000 20,000 954,276 934,276 622,096 Transfers Out (2,696,002) (2,696,002) (2,751,022) (55,020) (2,696,022) Net Change in Fund Balance (1,662,422) (24,395) 1,195,224 1,219,619 2,149,563 Fund Balance, Beginning of Year 5,220,694 6,392,049 6,646,831 254,782 4,497,268 Fund Balance, End of Year $ 3,558,272 $ 6,367,654 $ 7,842,055 $ 1,474,401 $ 6,646,831 2022 Actual (Negative) Positive Actual Final Budget Original Budget Variance Town of Monument, Colorado Budgetary Comparison Schedule General Fund For the Year Ended December 31, 2023 With Comparative Actual Totals for the Year Ended December 31, 2022 2023 See Accompanying Independent Auditor's Report. 34 ---PAGE BREAK--- Revenues Sales Taxes $ 1,828,036 $ 2,111,649 $ 2,478,382 $ 366,733 $ 2,111,649 Interest 35,000 200,000 209,035 9,035 71,443 Total Revenues 1,863,036 2,311,649 2,687,417 375,768 2,183,092 Expenditures Public Works 211,250 311,250 274,004 37,246 99,119 Capital Outlay 250,000 280,000 21,758 258,242 5,678 Total Expenditures 461,250 591,250 295,762 295,488 104,797 Other Financing Sources (Uses) Transfers Out (1,271,400) (1,271,400) (1,271,400) - (1,271,200) Net Change in Fund Balance 130,386 448,999 1,120,255 671,256 807,095 Fund Balance, Beginning of Year 5,892,809 7,020,804 7,020,804 - 6,213,709 Fund Balance, End of Year $ 6,023,195 $ 7,469,803 $ 8,141,059 $ 671,256 $ 7,020,804 Original Budget 2023 Town of Monument, Colorado Budgetary Comparison Schedule 2A Water ASD Fund For the Year Ended December 31, 2023 With Comparative Actual Totals for the Year Ended December 31, 2022 Actual Variance Positive Final 2022 Budget Actual (Negative) See Accompanying Independent Auditor's Report. 35 ---PAGE BREAK--- Measurement Date Proportionate Share of the Net Pension Liability (Benefit) Authority's Proportion of the Net Pension Liability (Benefit) 0.[PHONE REDACTED]% 0.[PHONE REDACTED]% Authority's Proportionate Share of the Net Pension Liability (Asset) $ 85,069 $ (416,167) Authority's Covered Payroll $ 1,691,532 $ 1,260,019 Authority's Proportionate Share of the Net Pension Liability (Benefit) as a Percentage of Covered Payroll 5% -33% Plan Fiduciary Net Position as a Percentage of the Total Pension Liability (Benefit) 98% 116% Reporting Date Authority Contributions Statutorily Required Contribution $ 87,777 $ 75,944 Contributions in Relation to the Statutorily Required Contribution (87,777) (75,944) Contribution Deficiency (Excess) $ - $ - Authority's Covered Payroll $ 1,829,046 $ 1,691,532 Contributions as a Percentage of Covered Payroll 4.80% 4.49% This schedule is presented to show information for 10 years. Until information for the full 10-year period is available, information will be presented for the years it is available. 12/31/2023 12/31/2022 Town of Monument, Colorado Schedule of Proportionate Share of the Net Pension Liability and Contributions FPPA Police Officers Statewide Defined Benefit Pension Plan For the Year Ended December 31, 2023 12/31/2022 12/31/2021 See Accompanying Independent Auditor's Report. 36 ---PAGE BREAK--- Town of Monument, Colorado Notes to Required Supplementary Information December 31, 2023 37 Note 1: Stewardship, Compliance, and Accountability Budgets Budgets are legally adopted for all funds of the Town. Budgets for the governmental funds are adopted on a basis consistent with generally accepted accounting principles (GAAP). Budgetary comparisons for the proprietary fund are presented on a non-GAAP budgetary basis, whereby capital outlay and debt principal are budgeted as expenditures. The Town follows these procedures to establish the budgetary information reflected in the financial statements:  In October, management submits to the Town Council a proposed 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 31, the budget is legally enacted through passage of a resolution.  Management 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). Capital outlay and debt payments are budgeted as expenditures and depreciation is not budgeted.  Colorado governments may not exceed budgeted appropriations at the fund level.  All appropriations lapse at year end. For the year ended December 31, 2023, the Town’s Capital Projects Fund, Conservation Trust Fund, Storm Drainage Impact Fee Fund, and the Park Fee Fund expenditures all exceeded expenditure appropriations. This may be a violation of State statutes. ---PAGE BREAK--- Supplementary Information ---PAGE BREAK--- Assets Cash and Investments $ 121,686 $ - $ 356,703 $ 266,257 $ 235,194 $ 979,840 $ 796,356 Restricted Cash and Investments - 119,841 - - - 119,841 83,679 Prepaid Expenses - - - - - - 188 Total Assets $ 121,686 $ 119,841 $ 356,703 $ 266,257 $ 235,194 $ 1,099,681 $ 880,223 Liabilities Accounts Payable - - - - - - 1,967 Total Liabilities - - - - - - 1,967 Fund Balance Nonspendable - - - - - - 188 Restricted for Parks and Recreation - 119,841 - - 235,194 355,035 299,058 Committed 121,686 - 356,703 266,257 - 744,646 579,010 Total Fund Balance 121,686 119,841 356,703 266,257 235,194 1,099,681 878,256 Total Liabilities and Fund Balance $ 121,686 $ 119,841 $ 356,703 $ 266,257 $ 235,194 $ 1,099,681 $ 880,223 Town of Monument, Colorado Combining Balance Sheet Nonmajor Governmental Funds December 31, 2023 With Comparative Totals for December 31, 2022 2022 Total 2023 Fund Fund Fund Trust Conservation Traffic Park Fee Impact Fee Storm Drainage Impact Fee Fund Fund Development Community See Accompanying Independent Auditor's Report. 38 ---PAGE BREAK--- Revenues Licenses and Permits $ 81,720 $ - $ - $ - $ - $ 81,720 $ 84,490 Intergovernmental - 107,855 - - 171,426 279,281 96,280 Charges for Services - - 150,290 129,543 100,705 380,538 325,776 Investment Income 2,008 1,591 6,086 2,044 - 11,729 3,774 Contributions and Donations - 798 - - 817 1,615 4,892 Miscellaneous 20,500 - - - - 20,500 63,600 Total Revenues 104,228 110,244 156,376 131,587 272,948 775,383 578,812 Expenditures General Government 136,434 1,651 - - 12,179 150,264 201,972 Parks and Recreation - - - - 188 188 1,031 Capital Outlay - 52,431 23,260 184,861 240,954 501,506 110,791 Total Expenditures 136,434 54,082 23,260 184,861 253,321 651,958 313,794 Excess Revenues Over (Under) Expenditures (32,206) 56,162 133,116 (53,274) 19,627 123,425 265,018 Other Financing Sources (Uses) Transfers In 63,000 - - 55,000 - 118,000 63,000 Transfers Out - (20,000) - - - (20,000) (20,000) Net Change in Fund Balance 30,794 36,162 133,116 1,726 19,627 221,425 308,018 Fund Balance, Beginning of year 90,892 83,679 223,587 264,531 215,567 878,256 570,238 Fund Balance, End of year $ 121,686 $ 119,841 $ 356,703 $ 266,257 $ 235,194 $ 1,099,681 $ 878,256 Development Fund 2022 Total 2023 Trust Fund Impact Fee Impact Fee Fund Fund Park Fee Fund Traffic Drainage Town of Monument, Colorado Combining Statement of Revenues, Expenditures and Changes in Fund Balance Nonmajor Governmental Funds For the Year Ended December 31, 2023 Storm Community Conservation With Comparative Totals for the Year Ended December 31, 2022 See Accompanying Independent Auditor's Report. 39 ---PAGE BREAK--- Revenues Taxes $ 500,000 $ 1,186,649 $ 1,480,994 $ 294,345 $ 902,124 Intergovernmental 8,378,363 395,501 674,693 279,192 1,077,663 Interest 2,000 3,949 5,439 1,490 1,750 Total Revenues 8,880,363 1,586,099 2,161,126 575,027 1,981,537 Expenditures Public Works - - 491,326 (491,326) 857,319 Capital Outlay 8,805,346 580,983 415,046 165,937 274,188 Total Expenditures 8,805,346 580,983 906,372 (325,389) 1,131,507 Net Change in Fund Balance 75,017 1,005,116 1,254,754 249,638 850,030 Fund Balance, Beginning of Year 508,817 1,475,854 1,475,854 - 625,824 Fund Balance, End of Year $ 583,834 $ 2,480,970 $ 2,730,608 $ 249,638 $ 1,475,854 With Comparative Actual Totals for the Year Ended December 31, 2022 Original Budget 2022 Actual Town of Monument, Colorado Budgetary Comparison Schedule Capital Projects Fund For the Year Ended December 31, 2023 Budget Actual (Negative) Variance Final Positive 2023 See Accompanying Independent Auditor's Report. 40 ---PAGE BREAK--- Revenues Taxes $ 1,700,000 $ 1,882,116 $ 1,963,053 $ 80,937 $ 1,775,581 User Charges/ Fees 3,000 10,000 12,224 2,224 48,161 Donations - - 12,685 12,685 2,250 Interest 500 - - - - Miscellaneous 85,826 85,826 104,904 19,078 - Total Revenues 1,789,326 1,977,942 2,092,866 114,924 1,825,992 Expenditures Public Safety 4,227,449 4,277,569 4,081,300 196,269 3,786,283 Capital Outlay 220,694 399,516 - 399,516 - Debt Service Principal - - 158,895 (158,895) 82,066 Interest - - 6,311 (6,311) 7,018 Total Expenditures 4,448,143 4,677,085 4,246,506 430,579 3,875,367 Other Financing Sources (Uses) Transfers In 2,633,002 2,633,002 2,633,022 20 2,633,022 Net Change in Fund Balance (25,815) (66,141) 479,382 545,523 583,647 Fund Balance, Beginning of Year 45,655 647,671 583,647 (64,024) - Fund Balance, End of Year $ 19,840 $ 581,530 $ 1,063,029 $ 481,499 $ 583,647 Actual 2022 Original Final Positive Budget Budget Actual (Negative) Variance Town of Monument, Colorado Budgetary Comparison Schedule 2F Police Fund For the Year Ended December 31, 2023 With Comparative Actual Totals for the Year Ended December 31, 2022 2023 See Accompanying Independent Auditor's Report. 41 ---PAGE BREAK--- Revenues Business Licenses $ 74,125 $ 74,125 $ 81,720 $ 7,595 $ 84,490 Interest 400 1,500 2,008 508 646 Contributions and Donations - - - - 1,622 Miscellaneous 4,000 20,500 20,500 - 63,600 Total Revenues 78,525 96,125 104,228 8,103 150,358 Expenditures General Government 195,055 138,455 136,434 2,021 201,972 Total Expenditures 195,055 138,455 136,434 2,021 201,972 Other Financing Sources (Uses) Transfers In 63,000 63,000 63,000 - 63,000 Net Change in Fund Balance (53,530) 20,670 30,794 10,124 11,386 Fund Balance, Beginning of Year 62,637 92,712 90,892 (1,820) 79,506 Fund Balance, End of Year $ 9,107 $ 113,382 $ 121,686 $ 8,304 $ 90,892 2023 Final Budget Variance Actual (Negative) Town of Monument, Colorado Budgetary Comparison Schedule Community Development Fund For the Year Ended December 31, 2023 With Comparative Actual Totals for the Year Ended December 31, 2022 Positive 2022 Actual Original Budget See Accompanying Independent Auditor's Report. 42 ---PAGE BREAK--- Revenues Lottery Revenues $ 50,000 $ 100,000 $ 107,855 $ 7,855 $ 96,280 Interest 100 1,155 1,591 436 512 Contributions and Donations - - 798 798 270 Total Revenues 50,100 101,155 110,244 9,089 97,062 Expenditures General Government - - 1,651 (1,651) - Park and Recreation 40,000 46,915 - 46,915 - Capital Outlay - 5,490 52,431 (46,941) 36,397 Total Expenditures 40,000 52,405 54,082 (1,677) 36,397 Other Financing Sources (Uses) Transfers Out (20,000) (20,000) (20,000) - (20,000) Net Change in Fund Balance (9,900) 28,750 36,162 7,412 40,665 Fund Balance, Beginning of Year 21,945 83,678 83,679 1 43,014 Fund Balance, End of Year $ 12,045 $ 112,428 $ 119,841 $ 7,413 $ 83,679 Original Budget 2023 2022 Actual Budget Actual (Negative) Variance Final Positive Town of Monument, Colorado Budgetary Comparison Schedule Conservation Trust Fund For the Year Ended December 31, 2023 With Comparative Actual Totals for the Year Ended December 31, 2022 See Accompanying Independent Auditor's Report. 43 ---PAGE BREAK--- Actual Revenues Traffic Impact Fees $ 77,063 $ 77,063 $ 150,290 $ 73,227 $ 99,024 Interest 1,200 1,200 6,086 4,886 1,958 Total Revenues 78,263 78,263 156,376 78,113 100,982 Expenditures Capital Outlay 100,000 100,000 23,260 76,740 52,498 Total Expenditures 100,000 100,000 23,260 76,740 52,498 Net Change in Fund Balance (21,737) (21,737) 133,116 154,853 48,484 Fund Balance, Beginning of Year 72,234 170,028 223,587 53,559 175,103 Fund Balance, End of Year $ 50,497 $ 148,291 $ 356,703 $ 208,412 $ 223,587 Original Budget 2023 2022 Budget Actual (Negative) Variance Final Positive Budgetary Comparison Schedule Traffic Impact Fee Fund For the Year Ended December 31, 2023 With Comparative Actual Totals for the Year Ended December 31, 2022 Town of Monument, Colorado See Accompanying Independent Auditor's Report. 44 ---PAGE BREAK--- Revenues Storm Drainage Impact Fees $ 60,000 $ 60,000 $ 129,543 $ 69,543 $ 116,402 Interest 250 250 2,044 1,794 658 Total Revenues 60,250 60,250 131,587 71,337 117,060 Expenditures Capital Outlay 100,000 100,000 184,861 (84,861) 21,896 Total Expenditures 100,000 100,000 184,861 (84,861) 21,896 Other Financing Sources (Uses) Transfers Out - - 55,000 55,000 - Net Change in Fund Balance (39,750) (39,750) 1,726 41,476 95,164 Fund Balance, Beginning of Year 129,617 264,531 264,531 - 169,367 Fund Balance, End of Year $ 89,867 $ 224,781 $ 266,257 $ 41,476 $ 264,531 2023 Town of Monument, Colorado Budgetary Comparison Schedule Storm Drainage Impact Fee For the Year Ended December 31, 2023 With Comparative Actual Totals for the Year Ended December 31, 2022 Actual Original Budget Positive 2022 Final Budget Actual (Negative) Variance See Accompanying Independent Auditor's Report. 45 ---PAGE BREAK--- Revenues Intergovernmental $ - $ - $ 171,426 $ 171,426 $ - Charges for Services 40,000 255,899 100,705 (155,194) 110,350 Interest 100 20 - (20) - Contributions and Donations - - 817 817 3,000 Total Revenues 40,100 255,919 272,948 17,029 113,350 Expenditures General Government - - 12,179 (12,179) - Parks and Recreation - - 188 (188) 1,031 Capital Outlay 150,000 241,300 240,954 346 - Total Expenditures 150,000 241,300 253,321 (12,021) 1,031 Net Change in Fund Balance (109,900) 14,619 19,627 5,008 112,319 Fund Balance, Beginning of Year 143,348 215,566 215,567 1 103,248 Fund Balance, End of Year $ 33,448 $ 230,185 $ 235,194 $ 5,009 $ 215,567 2022 Budget Budget Actual (Negative) Actual Variance Original Final Positive 2023 Town of Monument, Colorado Budgetary Comparison Schedule Park Fee For the Year Ended December 31, 2023 With Comparative Actual Totals for the Year Ended December 31, 2022 See Accompanying Independent Auditor's Report. 46 ---PAGE BREAK--- 2022 Actual Revenues Charges For Services $ 2,385,711 $ 2,434,614 $ 2,432,420 $ (2,194) $ 2,292,841 Other Income - 19,494 89,422 69,928 92,269 Total Revenue 2,385,711 2,454,108 2,521,842 67,734 2,385,110 Expenses Operations and Maintenance 2,340,246 2,340,246 2,093,710 246,536 1,561,813 Administration and General 1,150,323 1,150,323 235,856 914,467 156,154 Capital Outlay 17,057,722 17,057,722 9,859,985 7,197,737 5,517,148 Total Expenses 20,548,291 20,548,291 12,189,551 8,358,740 7,235,115 Net Operating Income (18,162,580) (18,094,183) (9,667,709) 8,426,474 (4,850,005) Nonoperating Revenues (Expenses) Sales taxes 322,476 323,093 468,666 145,573 567,278 Interest Income 20,000 500,000 490,064 (9,936) 246,608 Debt Service (1,271,400) (1,271,400) (1,271,400) - (1,271,200) Total Nonoperating Revenues (Expenses) (928,924) (448,307) (312,670) 135,637 (457,314) Net Income (Loss) Before Contributed Capital (19,091,504) (18,542,490) (9,980,379) 8,562,111 (5,307,319) Contributed Capital Tap Fees 2,566,950 2,566,950 3,192,730 625,780 3,265,350 Transfers In 1,271,400 1,271,400 1,271,400 - 1,271,200 Transfers Out - - (934,276) (934,276) (602,096) Change in Net Position, Budgetary Basis $ (15,253,154) $ (14,704,140) $ (6,450,525) $ 8,253,615 $ (1,372,865) Reconciliation to GAAP Basis Capital Outlay 9,859,985 5,517,148 Gain on Sale of Assets - 499 Debt Principal Payments 679,644 660,556 Depreciation (823,615) (727,282) Change in Net Position, GAAP Basis $ 3,265,489 $ 4,078,056 Original Budget Town of Monument, Colorado Budgetary Comparison Schedule Water Fund For the Year Ended December 31, 2023 Final Budget Variance Positive Actual (Negative) With Comparative Actual Totals for the Year Ended December 31, 2022 See Accompanying Independent Auditor's Report. 47 ---PAGE BREAK--- Compliance Section ---PAGE BREAK--- State Compliance ---PAGE BREAK--- Form Approved The public report burden for this information collection is estimated to average 380 hours annually. OMB No. 2125-0032 STATE: COLORADO YEAR ENDING (mm/yy): 12/23 This Information From The Records Of: Prepared By: TOWN OF MONUMENT LAURIE YOUNG A. Local B. Local C. Receipts from D. Receipts from ITEM 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 ITEM AMOUNT AMOUNT A. Receipts from local sources: A. Local highway expenditures: 1. Local highway-user taxes 1. Capital outlay (from page 2) 551,001.03 $ a. Motor Fuel (from Item I.A.5.) - $ 2. Maintenance: 194,572.83 $ b. Motor Vehicle (from Item I.B.5.) - $ 3. Road and street services: c. Total - $ a. Traffic control operations 1,565,706.46 $ 2. General fund appropriations b. Snow and ice removal 56,673.51 $ 3. Other local imposts (from page 2) 1,876,179.34 $ c. Other 4. Miscellaneous local receipts (from page 2) 35,413.62 $ d. Total through 1,622,379.97 $ 5. Transfers from toll facilities 4. General administration & miscellaneous 110,998.46 $ 6. Proceeds of sale of bonds and notes: 5. Highway law enforcement and safety a. Bonds - Original Issues 6. Total (1 through 5) 2,478,952.29 $ b. Bonds - Refunding Issues B. Debt service on local obligations: c. Notes 1. Bonds: d. Total + b. + - $ a. Interest 7. Total (1 through 6) 1,911,592.96 $ b. Redemption B. Private Contributions c. Total + - $ C. Receipts from State government 2. Notes: 671,380.33 $ a. Interest D. Receipts from Federal Government b. Redemption - $ c. Total + - $ E. Total receipts (A.7 + B + C + D) 2,582,973.29 $ 3. Total (1.c + 2.c) - $ C. Payments to State for highways D. Payments to toll facilities E. Total expenditures (A.6 + B.3 + C + D) 2,478,952.29 $ Opening Debt Amount Issued Redemptions Closing Debt A. Bonds (Total) - $ 1. Bonds (Refunding Portion) - $ B. Notes (Total) - $ A. Beginning Balance B. Total Receipts C. Total Disbursements D. Ending Balance E. Reconciliation 2,582,973.29 $ 2,478,952.29 $ 104,021.00 $ Notes and Comments: FORM FHWA-536 (Rev.06/2000) PREVIOUS EDITIONS OBSOLETE Excel (Next Page) page 1 LOCAL HIGHWAY FINANCE REPORT I. DISPOSITION OF HIGHWAY-USER REVENUES AVAILABLE FOR LOCAL GOVERNMENT EXPENDITURE II. RECEIPTS FOR ROAD AND STREET PURPOSES III. EXPENDITURES FOR ROAD AND STREET PURPOSES ITEM (from page 2) (from page 2) IV. LOCAL HIGHWAY DEBT STATUS (Show all entries at par) V. LOCAL ROAD AND STREET FUND BALANCE (RECEIPTS AND DISBURSEMENTS ONLY) 48 ---PAGE BREAK--- STATE: COLORADO YEAR ENDING (mm/yy): 12/23 AMOUNT AMOUNT A.3. Other local imposts: A.4. Miscellaneous local receipts: a. Property Taxes and Assesments a. Interest on investments b. Other local imposts: b. Traffic Fines & Penalties 35,413.62 $ 1. Sales Taxes c. Parking Garage Fees 2. Infrastructure & Impact Fees 224,834.10 $ d. Parking Meter Fees 3. Liens - $ e. Sale of Surplus Property 4. Licenses 6,115.00 $ f. Charges for Services 5. Specific Ownership &/or Other 1,645,230.24 $ g. Other Misc. Receipts 6. Total through 1,876,179.34 $ h. Other c. Total + 1,876,179.34 $ i. Total through 35,413.62 $ AMOUNT AMOUNT C. Receipts from State Government D. Receipts from Federal Government 1. Highway-user taxes (from Item I.C.5.) 318,994.44 $ 1. FHWA (from Item I.D.5.) - $ 2. State general funds 2. Other Federal agencies: 3. Other State funds: a. Forest Service a. State bond proceeds b. FEMA b. Project Match c. HUD c. Motor Vehicle Registrations 33,550.99 $ d. Federal Transit Administration d. DOLA Grant e. U.S. Corps of Engineers e. Other 318,834.90 $ f. Other Federal ARPA f. Total through 352,385.89 $ g. Total through - $ 4. Total + 2. + 3.f) 671,380.33 $ 3. Total + 2.g) - $ ON NATIONAL OFF NATIONAL HIGHWAY HIGHWAY TOTAL SYSTEM SYSTEM A.1. Capital outlay: a. Right-Of-Way Costs - $ b. Engineering Costs 135,955.58 $ 135,955.58 $ c. Construction: New Facilities - $ Capacity Improvements - $ System Preservation 415,045.45 $ 415,045.45 $ System Enhancement And Operation - $ Total Construction - $ 415,045.45 $ 415,045.45 $ d. Total Capital Outlay (Lines 1.a. + 1.b. + 1.c.4) - $ 551,001.03 $ 551,001.03 $ Notes and Comments: FORM FHWA-536 page 2 LOCAL HIGHWAY FINANCE REPORT II. RECEIPTS FOR ROAD AND STREET PURPOSES - DETAIL ITEM ITEM (Carry forward to page 1) (Carry forward to page 1) ITEM ITEM (Carry forward to page 1) (Carry forward to page 1) III. EXPENDITURES FOR ROAD AND STREET PURPOSES - DETAIL (Carry forward to page 1) 49 ---PAGE BREAK--- Town Council Town of Monument Monument, Colorado We have audited the financial statements of the Town of Monument (the Town) as of and for the year ended December 31, 2023, and have issued our report thereon dated June 13, 2024. Professional standards require that we advise you of the following matters related to our audit. Our Responsibility in Relation to the Financial Statement Audit As communicated in our engagement letter dated November 10, 2023, our responsibility, as described by professional standards, is to form and express opinions about whether the financial statements that have been prepared by management with your oversight are fairly presented, in all material respects, in accordance with accounting principles generally accepted in the United States of America. Our audit of the financial statements does not relieve you or management of your respective responsibilities. Our responsibility, as prescribed by professional standards, is to plan and perform our audit to obtain reasonable, rather than absolute, assurance about whether the financial statements are free of material misstatement. An audit of financial statements includes consideration of the system of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Town’s internal control over financial reporting. Accordingly, as part of our audit, we considered the system of internal control of the Town solely for the purpose of determining our audit procedures and not to provide any assurance concerning such internal control. We are also responsible for communicating significant matters related to the audit that are, in our professional judgment, relevant to your responsibilities in overseeing the financial reporting process. However, we are not required to design procedures for the purpose of identifying other matters to communicate to you. We applied certain limited procedures to the required supplementary information (RSI). However, we did not audit the RSI and do not express an opinion or provide any assurance on the RSI. With respect to the supplementary information accompanying the financial statements, we performed procedures to determine that the information complies with accounting principles generally accepted in the United States of America, the method of preparing the information has not changed from the prior year, and the information is appropriate and complete in relation to our audit of the financial statements. Denver Office: 750 W. Hampden Avenue, Suite 400 Englewood, Colorado 80110 TEL: [PHONE REDACTED] FAX: [PHONE REDACTED] www.HinkleCPAs.com Office Locations: Colorado Springs, CO Denver, CO Frisco, CO Tulsa, OK ---PAGE BREAK--- Town Council Town of Monument, Colorado Page 2 Compliance with All Ethics Requirements Regarding Independence The engagement team, others in our firm, as appropriate, and out firm have complied with all relevant ethical requirements regarding independence. Significant Accounting Policies Management is responsible for the selection and use of appropriate accounting policies. A summary of the significant accounting policies adopted by the Town is included in Note 1 to the financial statements. There have been no initial selection of accounting policies and no changes in significant accounting policies or their application during 2023. No matters have come to our attention that would require us, under professional standards, to inform you about the methods used to account for significant unusual transactions and the effect of significant accounting policies in controversial or emerging areas for which there is a lack of authoritative guidance or consensus. Accounting Estimates Accounting estimates and related disclosures are an integral part of the financial statements prepared by management and are based on management’s current judgments. Those judgments are normally based on knowledge and experience about past and current events and assumptions about future events. Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ markedly from management’s current judgments. Uncorrected and Corrected Misstatements For purposes of this communication, professional standards also require us to accumulate all known and likely misstatements identified during the audit, other than those that are clearly trivial, and communicate them to the appropriate level of management. Further, professional standards require us to also communicate the effect of uncorrected misstatements related to prior periods on the relevant classes of transactions, account balances or disclosures, and the financial statements as a whole and each applicable opinion unit. The attached schedule summarizes uncorrected financial adjustments whose effects in the current and prior periods, as determined by management, are immaterial, both individually and in the aggregate, to the financial statements taken as a whole. Uncorrected adjustments or matters underlying those uncorrected misstatements could potentially cause future-period financial statements to be materially misstated, even though the uncorrected adjustments are immaterial to the financial statements currently under audit. In addition, professional standards require us to communicate to you all material, corrected misstatements that were brought to the attention of management as a result of our audit procedures. The attached schedule identifies the material adjustments that we identified as a result of our audit procedures, were brought to the attention of, and corrected by management. Disagreements with Management For purposes of this letter, professional standards define a disagreement with management as a matter, whether or not resolved to our satisfaction, concerning a financial accounting, reporting, or auditing matter, which could be significant to the Town’s financial statements or the auditor’s report. No such disagreements arose during the course of the audit. ---PAGE BREAK--- Town Council Town of Monument, Colorado Page 3 Difficulties Encountered in Performing the Audit We encountered no significant difficulties in dealing with management relating to the performance of the audit. Representations Requested from Management We have requested certain written representations from management, which are included in the attached letter dated June 12, 2024. Management Consultations with Other Accountants In some cases, management may decide to consult with other accountants about auditing and accounting matters. Management informed us that, and to our knowledge, there were no consultations with other accountants regarding auditing and accounting matters. Other Audit Issues In the normal course of our professional association with the Town, we generally discuss a variety of matters, including the application of accounting principles and auditing standards, significant events or transactions that occurred during the year, operating and regulatory conditions affecting the Town, and operational plans and strategies that may affect the risks of material misstatement. None of the matters discussed resulted in a condition to our retention as the Town’s auditors. Conclusion This report is intended solely for the information and use of the Town Council and management of the Town of Monument, Colorado and is not intended to be, and should not be, used by anyone other than these specified parties. Englewood, Colorado June 13, 2024