Document Monument_doc_4ed721eb35

TOWN OF MONUMENT, COLORADO BASIC FINANCIAL STATEMENTS December 31, 2018 ---PAGE BREAK--- INTRODUCTORY SECTION ---PAGE BREAK--- TOWN OF MONUMENT, COLORADO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2018 BOARD OF TRUSTEES Mayor Don Wilson Mayor Pro Tem Kelly Elliott Trustee Jeffrey Bornstein Trustee Laurie Clark Trustee Greg Coopman Trustee Ron Stephens Trustee Jim Romanello ADMINISTRATIVE STAFF Mike Foreman – Town Manager Pamela Smith – Town Treasurer Laura Hogan – Town Clerk Jacob Shirk – Chief of Police Thomas Tharnish – Public Works Director Larry Manning – Planning Director Joe Rivera – Town Attorney ---PAGE BREAK--- TABLE OF CONTENTS PAGE INTRODUCTORY SECTION Title Page Table of Contents FINANCIAL SECTION Independent Auditors’ Report a - b Management’s Discussion and Analysis i - ix Basic Financial Statements Government – Wide Financial Statements Statements of Net Position 1 Statements of Activities 2 Fund Financial Statements Balance Sheets – Governmental Funds 3 Reconciliation of the Balance Sheet – Governmental Funds to the Statement of Net Position 4 Statement of Revenues, Expenditures and Changes in Fund Balances – Governmental Funds 5 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities 6 Statement of Net Position – Proprietary Fund Type 7 Statement of Revenues, Expenses and Changes in Fund Net Position – Proprietary Fund Type 8 Statement of Cash Flows – Proprietary Fund Type 9 Notes to Financial Statements 10 – 24 ---PAGE BREAK--- TABLE OF CONTENTS (Continued) PAGE FINANCIAL SECTION (Continued) Required Supplementary Information General Fund – Budgetary Comparison Statement 25 2A Water ASD Fund – Budgetary Comparison Statement 26 Supplementary Information Combining and Individual Fund Schedules Combining Balance Sheet – Nonmajor Governmental Funds 27 Combining Statement of Revenues, Expenditures and Changes In Fund Balances – Nonmajor Governmental Funds 28 Community Development Fund – Budgetary Comparison Schedule 29 Conservation Trust Fund – Budgetary Comparison Schedule 30 Traffic Impact Fee Fund – Budgetary Comparison Schedule 31 Storm Drainage Impact Fee Fund – Budgetary Comparison Schedule 32 Water Fund – Budgetary Comparison Schedule 33 OTHER INFORMATION Local Highway Finance Report 34 - 35 ---PAGE BREAK--- FINANCIAL SECTION ---PAGE BREAK--- a INDEPENDENT AUDITORS’ REPORT Honorable Mayor and Members of the Board of Trustees Town of Monument Monument, Colorado Report on the Financial Statements We have audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the Town of Monument, Colorado, as of and for the year ended December 31, 2018, and the related notes to the financial statements, which collectively comprise the Town’s basic financial statements as listed in the table of contents. Management’s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditor’s Responsibility Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Opinions In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the Town of Monument, Colorado , as of December 31, 2018, and the respective changes in financial position, and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America. ---PAGE BREAK--- b Other Matters Comparative Financial Information The comparative financial information for the prior year has been presented in the accompanying financial statements in order to provide an analysis of changes in the Town’s financial position and operations. However, complete comparative financial information has not been presented in accordance with generally accepted accounting principles since its inclusion would make the financial statements cumbersome and difficult to read. The comparative financial information was derived from the Town’s financial statements for the year ended December 31, 2017, by which a report dated June 27, 2018 expressed an unmodified opinion. Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis and required budgetary information on pages i – ix and 25- 26 be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Supplementary Information and Other Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Town’s basic financial statements. The accompanying supplementary information and other information, as listed in the table of contents, are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The supplementary information and other information have been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the supplementary information is fairly stated in all material respects in relation to the financial statements as a whole. Aurora, Colorado July 21, 2019 ---PAGE BREAK--- i 2018 MANAGEMENT’S DISCUSSION & ANALYSIS This discussion and analysis of the Town of Monument’s financial performance provides an overview of the Town’s financial activities for the fiscal year ended December 31, 2018. 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 2018 by $23,640,857 (net position). Of this amount, $3,434,882 (unrestricted, unreserved net position) may be used for the Town’s obligations to citizens and creditors.  At December 31, 2018, the Town of Monument’s governmental funds reported combined ending fund balances of $3,709,249 an increase of $940,041 in comparison with the prior year. $474,116 of this total amount is available for spending at the Town’s discretion (unassigned fund balance).  The unassigned fund balance for the General Fund was $474,116, or 7.1% of the total General Fund expenditures. This is a decrease of 1.8% from the prior year.  Sales and use taxes revenue, the Town’s largest source of revenue was $5,202,849 for 2018 as compared to $4,890,857 for the prior year, an increase of 6.3%. The key factor for this was an increase in commercial and residential development and a more robust economy in 2018. Using This Annual Report This discussion and analysis is intended to serve as an introduction to the Town of Monument’s basic financial statements. The Town of Monument’s basic financial statements comprise three components: 1) the government-wide financial statements 2) fund financial statements 3) notes to the financial statements Government-wide Financial Statements The government-wide financial statements are designed to provide readers with a broad overview of the Town of Monument’s finances, in a manner similar to a private-sector business. The statement of net position presents information on all the Town of Monument’s assets and liabilities, with the difference between the two reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the Town of Monument is improving or deteriorating. 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 ---PAGE BREAK--- ii flows. Thus, revenues and expenses reported in this statement for some items will result in cash flows in future fiscal periods uncollected taxes and earned but unused vacation leave). The government-wide financial statements distinguish functions of the Town of Monument that are principally supported by taxes and intergovernmental revenues (Governmental Activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (Business-type Activities). The Governmental Activities of the Town of Monument include general government, public safety (law enforcement & court), public works (streets, parks and recreation, cemetery) and planning. The Business-type Activities of the Town of Monument include water. Fund Financial Statements A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The Town of Monument, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All the Town’s funds can be divided into two categories: governmental funds and proprietary funds. Governmental funds – Most of the Town’s basic services are reported in governmental funds, which focus on how money flows into and out of those funds and the balances left at year-end that are available for spending. The funds are reported using an accounting method called modified accrual accounting, which measures cash and all other financial assets that can readily be converted to cash. The governmental funds statements provide a detailed short-term view of cash, the governmental fund operations and the basic services it provides. Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government- wide financial statements. By doing so, readers may better understand the long-term impact of the government’s near-term financing decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balance provide a reconciliation to facilitate this comparison between governmental funds and governmental activities. Proprietary fund – The enterprise fund of the proprietary fund type is used to report the same functions presented as business-type activities in the government-wide financial statements, but provide more detail and additional information, such as cash flow. Proprietary funds are reported in the same way that all activities are reported in the Statement of Net Position and the Statement of Activities. 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 ---PAGE BREAK--- iii statements. The notes to the financial statements can be found on pages 10 through 24 of this report. Other Information - In addition to the basic financial statements and accompanying notes, this report also presents certain required supplementary information concerning the Town of Monument’s General Fund and 2A Water ASD Fund (major special revenue fund); actual versus budgetary expenditures and can be found on pages 25 through 26 of this report. The combining statements, referred to earlier in connection with non-major governmental and enterprise funds, are presented immediately following the required supplementary information. Combining and individual fund statements and schedules can be found on pages 27 through 33. Financial Analysis of the Town as a Whole As noted earlier, net assets may serve over time as a useful indicator of a government’s financial position. Comparisons of 2018 to 2017 follow. In the case of the Town of Monument, assets exceeded liabilities by $23,640,857 at the end of 2018 and at the end of 2017 by $22,093,140 an increase in Total Net Position of $1,547,717 or 7.1%. 2018 2017 2018 2017 2018 2017 Governmental Activities Governmental Activities Business- type Activities Business- type Activities Total Total Assets Current and other assets $5,553,004 $ 4,375,354 $ 1,472,275 $1,462,681 $ 7,025,279 $ 5,838,035 Capital assets, net 10,749,481 11,074,398 8,405,950 7,651,577 19,155,431 18,725,975 Total assets 16,302,485 15,449,752 9,878,225 9,114,258 26,180,710 24,564,010 Liabilities Long term liabilities 400,437 486,848 74,768 146,070 475,206 632,918 Other liabilities 990,164 812,552 132,484 131,566 1,122,648 944,118 Total liabilities 1,390,601 1,299,400 207,252 277,636 1,597,853 1,577,036 Deferred Inflow of Resources Deferred Property Tax Revenue 942,000 893,834 - - 942,000 893,834 Net Position Net investment in capital assets 10,550,034 10,778,718 8,294,857 7,472,513 18,844,891 18,251,231 Restricted 231,130 212,108 1,129,954 1,146,110 1,361,084 1,358,218 Unrestricted 3,188,720 2,265,692 246,162 217,999 3,434,882 2,483,691 Total net position $13,969,884 $13,256,518 $9,670,973 $8,836,622 $23,640,857 $22,093,140 ---PAGE BREAK--- iv The largest portion of the Town of Monument’s net position (81%) reflects its investment in capital assets (e.g. land, buildings, infrastructure, vehicles, equipment, etc.), less any related debt still outstanding (current and long-term), that was used to acquire those assets. The Town uses these capital assets to provide services to citizens; consequently, these assets are not available for future spending. Although the Town’s investment in its capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities. Unrestricted net position may be used to meet the Town’s ongoing obligations to citizens and creditors. A small portion of the Town of Monument’s net position represents resources that are subject to external restriction on how they may be used. The remaining balance of unrestricted net position, $3,434,882, may be used to meet the Town’s ongoing obligations to citizens and creditors. ---PAGE BREAK--- v Changes in Net Position The Town’s net position increased $1,327,233 during 2017. Governmental Activities reported an $787,591 increase, with sales tax revenue and property taxes being the largest contributors. CHANGES IN NET POSITION 2018 Governmental Type Activities 2017 Governmental Type Activities 2018 Business Type Activities 2017 Business Type Activities 2018 Total 2017 Total Revenues: Program revenues: Charges for Services $532,779 $582,625 1,615,974 1,453,585 $2,148,753 $2,036,210 Operating Grants & Contributions 119,913 83,675 - - 119,913 83,675 Capital Grants & Contributions 43,762 41,706 652,730 344,050 696,492 385,756 General revenues: Property taxes 1,001,141 900,282 - - 1,001,141 900,282 Sales taxes 4,970,849 4,713,504 232,000 177,354 5,202,849 4,890,858 Franchise taxes 410,016 382,667 - - 410,016 382,667 Other Taxes 297,100 233,467 - - 297,100 233,467 Investment income 52,551 17,987 19,662 10,422 72,213 28,409 Other Misc 9,350 5,924 34,270 18,226 43,620 24,150 Transfers 172,779 69,645 (172,779) (69,645) - - Total revenues 7,610,240 7,031,482 2,381,857 1,933,992 9,992,097 8,965,474 Program expenses: General government 2,544,579 2,319,744 - - 2,544,579 2,319,744 Public safety 1,923,111 1,704,140 - - 1,923,111 1,704,140 Public works & parks 2,421,198 2,204,934 - - 2,421,198 2,204,934 Interest on long-term debt 7,986 15,073 5,129 8,864 13,115 23,937 Water - - 1,542,377 1,385,486 1,542,377 1,385,486 Total expenses 6,896,874 6,243,891 1,547,506 1,394,350 8,444,380 7,638,241 Change in net position 713,366 787,591 834,351 539,642 1,547,717 1,327,233 Net position 12/31/17 13,256,518 12,468,927 8,836,622 8,296,980 22,093,140 20,765,907 Net Position 12/31/18 $13,969,884 $13,256,518 $9,670,973 $8,836,622 $23,640,857 $22,093,140 Governmental Activities The following pie chart illustrates the governmental activities revenues. ---PAGE BREAK--- vi Sales and use taxes are the Town’s largest governmental activities revenue source at 68%. Property taxes are the second largest revenue source at 13% of the Town’s revenue for governmental activities. Charges for services include planning, traffic impact and storm drainage impact fees and along with franchise fees comprise the third largest revenue source of the Town’s governmental activities at The remaining interest income along with grants & contributions accounts for 4% of total revenues. Business-type Activities Charges for services account for 63% of the Town’s revenue for business-type activities while grants accounted for 25%. Sales taxes account for 9% and the remaining interest income, grants & contributions and miscellaneous revenue accounts for 2% of total revenues. Property & Specific Ownership Taxes 13% Sales, Use & Other Taxes 68% Franchise Fees 6% Investment income 1% Other taxes 4% Other miscellaneous 0% Charges for services 7% Operating grants and contributions 2% Capital grants and contriubtions 1% Revenues by Source - Governmental Activities - 2018 Actual Property & Specific Ownership Taxes Sales, Use & Other Taxes Franchise fees Investment income Other taxes Other miscellaneous Charges for services Operating grants and contributions Capital grants and contriubtions ---PAGE BREAK--- vii Financial Analysis of the Town’s Funds The Town of Monument uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. Significant balances and transactions for General Fund revenue include sales tax related to the development at Monument Marketplace, commercial and residential development, planning fees and increased franchise fees. Total revenues for the General Fund were $5,956,785, which was $361,624 over budget. Significant balances and transactions for General Fund expenditures include $39,918 on sidewalk improvements; $111,454 on vehicles and park equipment; $25,350 on park improvements and $200,615 on street improvements, for total capital outlay of $388,346. The Water Department spent $982,688 on wells with a total capital outlay of $1,147,642 for the year. The 2A Water ASD Fund spent $48,274 for capital projects related to the new water tank engineering. The Town Manager, in conjunction with the Department Heads, continued to analyze the Town’s salary ranges to keep up with competitive rates, for non-exempt employees, for related size towns and job descriptions. We were able to give 3% to 5% Performance Based raises for personnel and had no layoffs in 2018. The Town is within range for the state- wide CML Salary Survey. Water Fund revenue was less than Budget by $22,872 mainly as a reduction in charges for services. Tap fee revenue in 2018 was $652,730 which was $1,270 less than budgeted. The Town is approaching build-out of residential properties that are the Town’s responsibility, so this revenue stream will reduce in future years. Water billing revenue was $1,615,974 in line with 2018 budget. Water Fund actual budgetary expenses were approximately $148,436 under budget in 2018 due to reductions in operating expenditures. General Fund Budgetary Highlights The Board of Trustees must approve increases in the expenditure budget for any fund. Line item budget transfers are allowed within a fund with the approval of the Town Manager. The General Fund’s budgeted expenditures and transfers out were $6,324,297. Actual expenditures for 2018 were $6,198,312 an amount favorable to budgeted expenditures of $125,985. This positive variance was the result, in part, of salary savings; reduced Department expenditures and the Town’s decision not to purchase all approved capital items. The following pie chart shows the distribution of expenses by program/function. ---PAGE BREAK--- 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, 2018 totaled $19,155,431 (net of accumulated depreciation). Water fund capital assets represent 44% of this total. The capital projects for the Town’s governmental activities consisted of expenditures to include $31,019 for building; $89,058 on furniture and equipment; $60,036 on vehicles and street equipment; $23,064 on park improvements and $453,984 on street improvements, for total capital outlay of $657,161. The Water Department spent $1,096,042 on well/distribution system projects and $51,601 on building and equipment for total capital outlay of $1,147,642. Note 5 of the financial statements provide a detailed summary of the Town’s capital assets. Long-term Debt The Town’s long-term debt related to governmental activities decreased in 2018. Payments of $95,376 were made on capital lease obligations during the year. General government 38% Public safety 31% Public works 24% Capital Outlay 7% General Fund Expenditures - 2018 Actual ---PAGE BREAK--- ix The Town’s long-term debt related to business-type activities decreased in 2018. Payments of $67,971 were made on capital lease obligations. Note 6 of the financial statements provide a detailed summary on the Town’s long-term debt. Economic Factors and Next Year’s Budget While the unemployment rate in the region has remained relatively low and residential and commercial development have increased since the downturn, the Town expects a favorable increase in sales tax collections along with development fees. As a result of the development, the Water Fund is anticipating significant collections of tap and water fees in 2019. Total sales and use tax is budgeted at $7,723,418 for 2019, which reflects an increase of 5.6% over 2018. Property tax revenue is expected to increase $54,007 or 5.4% in 2019. This increase reflects a slight upswing in development over the previous year. The mill levy for 2019 is 6.289 mills. This levy brings the Town into compliance with Tabor and Gallagher laws. The mill levy for 2018 was 6.289 mills, unchanged since 2008. Operating costs are expected to increase due to the additional workload associated with increased economic activity as well as infrastructure needs for Town streets, sidewalks, parks and equipment. Staffing increases have been approved for the police department (3 positions) and water department (1 position). In the General Fund, the 2019 budget includes capital projects, which includes new vehicles and related equipment for the Police Department; asphalt work for Town streets; new bathroom facilities at the town lake, design services for a new public and water facility; bridge repairs and the replacement of existing vehicles and equipment The Water Enterprise Fund has capital projects for a booster station upgrade; reconstruction of water mains on Raspberry Lane; valve replacements; well upgrades; and distribution line projects. The ancillary funds have available cash for designated projects as they are assigned. Requests for Information This financial report is designed to provide a general overview of the Town of Monument’s finances for all those with an interest in the government’s finances. Questions concerning any of the information provided in this report or additional financial information should be addressed to the Town Treasurer at the Town of Monument, 645 Beacon Lite Road, Monument, Colorado, 80132. ---PAGE BREAK--- BASIC FINANCIAL STATEMENTS ---PAGE BREAK--- BUSINESS GOVERNMENTAL TYPE ACTIVITIES ACTIVITIES 2018 2017 ASSETS Cash and Investments 3,196,591 $ 222,405 $ 3,418,996 $ 2,375,445 $ Restricted Cash and Investments 8,130 658,844 666,974 772,275 Receivables Property Taxes 942,000 - 942,000 893,834 Sales and Other 1,395,942 - 1,395,942 1,207,154 Accounts 1,905 119,916 121,821 111,599 Prepaid Tap Fees - Water Line Loop - 471,110 471,110 471,110 Prepaid Expenses 8,436 - 8,436 6,618 Capital Assets, Not Depreciated 1,767,122 3,598,626 5,365,748 5,365,748 Capital Assets, Depreciated Net of Accumulated Depreciation 8,982,359 4,807,324 13,789,683 13,360,227 TOTAL ASSETS 16,302,485 9,878,225 26,180,710 24,564,010 LIABILITIES Accounts Payable 500,329 61,740 562,069 645,385 Accrued Salaries and Benefits 82,731 9,225 91,956 71,843 Accrued Interest - 2,205 2,205 5,510 Developer Escrow and Deposits 318,695 5,800 324,495 57,867 Noncurrent Liabilities Due within One Year 88,409 53,514 141,923 163,513 Due in More Than One Year 400,437 74,768 475,205 632,918 TOTAL LIABILITIES 1,390,601 207,252 1,597,853 1,577,036 DEFERRED INFLOW OF RESOURCES Deferred Property Tax Revenue 942,000 - 942,000 893,834 NET POSITION Net Investment in Capital Assets 10,550,034 8,294,857 18,844,891 18,251,231 Restricted for Emergencies 223,000 - 223,000 209,000 Restricted for Parks and Recreation 8,130 - 8,130 3,108 Restricted for Future Water Storage - 658,844 658,844 675,000 Restricted for Water Line Loop - 471,110 471,110 471,110 Unrestricted, Unreserved 3,188,720 246,162 3,434,882 2,483,691 TOTAL NET POSITION 13,969,884 $ 9,670,973 $ 23,640,857 $ 22,093,140 $ TOTAL TOWN OF MONUMENT, COLORADO STATEMENT OF NET POSITION December 31, 2018 The accompanying notes are an integral part of the financial statements. 1 ---PAGE BREAK--- TOWN OF MONUMENT, COLORADO STATEMENT OF ACTIVITIES PROGRAM REVENUES OPERATING CAPITAL CHARGES FOR GRANTS AND GRANTS AND FUNCTIONS/PROGRAMS EXPENSES SERVICES CONTRIBUTIONS CONTRIBUTIONS PRIMARY GOVERNMENT Governmental Activities General Government 2,544,579 $ 359,335 $ 58,205 $ - $ Public Safety 1,923,111 55,616 - - Public Works 2,361,372 117,828 61,708 - Parks and Recreation 59,826 - - 43,762 Interest on Long-Term Debt 7,986 - - - Total Governmental Activities 6,896,874 532,779 119,913 43,762 Business-Type Activities Water 1,542,377 1,615,974 - 652,730 Interest on Long-Term Debt 5,129 - - - Total Business-Type Activities 1,547,506 1,615,974 - 652,730 Total Primary Government 8,444,380 $ 2,148,753 $ 119,913 $ 696,492 $ GENERAL REVENUES Sales and Use Taxes Property Taxes Franchise Taxes Auto Sales Taxes Other Taxes Interest Other TRANSFERS TOTAL GENERAL REVENUES CHANGE IN NET POSITION NET POSITION, Beginning NET POSITION, Ending Year Ended December 31, 2018 The accompanying notes are an integral part of the financial statements. 2 ---PAGE BREAK--- GOVERNMENTAL BUSINESS-TYPE ACTIVITIES ACTIVITIES 2018 2017 (2,127,039) $ - $ (2,127,039) $ (1,974,446) $ (1,867,495) - (1,867,495) (1,607,303) (2,181,836) - (2,181,836) (1,902,717) (16,064) - (16,064) (36,346) (7,986) - (7,986) (15,073) (6,200,420) - (6,200,420) (5,535,885) - 726,327 726,327 412,149 - (5,129) (5,129) (8,864) - 721,198 721,198 403,285 (6,200,420) 721,198 (5,479,222) (5,132,600) 4,566,732 232,000 4,798,732 4,519,645 1,001,141 - 1,001,141 900,282 410,016 - 410,016 382,667 404,117 - 404,117 371,213 297,100 - 297,100 233,467 52,551 19,662 72,213 28,409 9,350 34,270 43,620 24,150 172,779 (172,779) - - 6,913,786 113,153 7,026,939 6,459,833 713,366 834,351 1,547,717 1,327,233 13,256,518 8,836,622 22,093,140 20,765,907 13,969,884 $ 9,670,973 $ 23,640,857 $ 22,093,140 $ TOTALS NET (EXPENSE) REVENUE AND CHANGE IN NET POSITION ---PAGE BREAK--- OTHER GENERAL 2A WATER GOVERNMENTAL FUND ASD FUND FUNDS 2018 2017 ASSETS Cash and Investments 201,024 $ 2,897,618 $ 97,949 $ 3,196,591 $ 2,167,422 $ Restricted Cash and Investments - - 8,130 8,130 97,275 Property Taxes Receivable 942,000 - - 942,000 893,834 Other Taxes Receivable 1,395,942 - - 1,395,942 1,207,154 Accounts Receivable 1,905 - - 1,905 3,051 Prepaid Expense 8,436 - - 8,436 6,618 TOTAL ASSETS 2,549,307 2,897,618 106,079 5,553,004 4,375,354 LIABILITIES, DEFERRED INFLOWS AND FUND EQUITY LIABILITIES Accounts Payable 500,329 - - 500,329 597,102 Accrued Salaries and Benefits 82,731 - - 82,731 71,843 Developer Escrow 318,695 - - 318,695 43,367 TOTAL LIABILITIES 901,755 - - 901,755 712,312 DEFERRED INFLOW OF RESOURCES Deferred Property Tax Revenue 942,000 - - 942,000 893,834 FUND EQUITY Fund Balance Nonspendable 8,436 - - 8,436 6,618 Restricted for Emergencies 223,000 - - 223,000 209,000 Restricted for Parks and Recreation - - 8,130 8,130 3,108 Committed - 2,897,618 97,949 2,995,567 1,991,800 Unassigned 474,116 - - 474,116 558,682 TOTAL FUND EQUITY 705,552 2,897,618 106,079 3,709,249 2,769,208 TOTAL LIABILITIES, DEFERRED INFLOWS, AND FUND EQUITY 2,549,307 $ 2,897,618 $ 106,079 $ 5,553,004 $ 4,375,354 $ TOTALS TOWN OF MONUMENT, COLORADO BALANCE SHEET GOVERNMENTAL FUNDS December 31, 2018 The accompanying notes are an integral part of the financial statements. 3 ---PAGE BREAK--- Amounts reported for governmental activities in the statement of net position are different because: Total Fund Balances of Governmental Funds 3,709,249 $ Capital assets used in governmental activities are not financial resources and therefore, are not reported in the funds. 10,749,481 Long-term liabilities and related items are not due and payable in the current period and are not reported in the funds. These include Capital Leases ($263,668), Accrued Compensated Absences ($320,115), and Accrued Interest Payable ($3,305). (488,846) Net position of governmental activities 13,969,884 $ TOWN OF MONUMENT, COLORADO RECONCILIATION OF THE BALANCE SHEET - GOVERNMENTAL FUNDS TO THE STATEMENT OF NET POSITION December 31, 2018 The accompanying notes are an integral part of the financial statements. 4 ---PAGE BREAK--- OTHER GENERAL 2A WATER GOVERNMENTAL FUND ASD FUND FUNDS 2018 2017 REVENUES Taxes 5,167,972 $ 1,214,302 $ - $ 6,382,274 $ 5,996,800 $ Licenses and Permits 64,632 - 67,964 132,596 119,209 Charges for Services 226,739 - 117,828 344,567 366,579 Intergovernmental 416,745 - 43,762 460,507 358,501 Court 55,616 - - 55,616 96,837 Interest 21,081 26,527 4,943 52,551 17,987 Miscellaneous 4,000 - 5,350 9,350 5,924 TOTAL REVENUES 5,956,785 1,240,829 239,847 7,437,461 6,961,837 EXPENDITURES General Government 2,309,369 - 103,938 2,413,307 2,163,711 Public Safety 1,888,180 - - 1,888,180 1,626,142 Public Works 1,474,222 125,125 - 1,599,347 1,428,894 Parks and Recreation - - 1,398 1,398 40,433 Debt Service Principal 110,209 - - 110,209 352,554 Interest 7,986 - - 7,986 15,073 Capital Outlay 388,346 - 261,426 649,772 805,711 TOTAL EXPENDITURES 6,178,312 125,125 366,762 6,670,199 6,432,518 EXCESS OF REVENUES OVER (UNDER) EXPENDITURES (221,527) 1,115,704 (126,915) 767,262 529,319 OTHER FINANCING SOURCES (USES) Proceeds from Issuance of Debt - - - - 235,758 Transfers In 172,779 - 20,000 192,779 69,645 Transfers Out (20,000) - - (20,000) - TOTAL OTHER FINANCING SOURCES (USES) 152,779 - 20,000 172,779 305,403 NET CHANGE IN FUND BALANCES (68,748) 1,115,704 (106,915) 940,041 834,722 FUND BALANCES, Beginning 774,300 1,781,914 212,994 2,769,208 1,934,486 FUND BALANCES, Ending 705,552 $ 2,897,618 $ 106,079 $ 3,709,249 $ 2,769,208 $ TOTALS TOWN OF MONUMENT, COLORADO STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - GOVERNMENTAL FUNDS Year Ended December 31, 2018 The accompanying notes are an integral part of the financial statements. 5 ---PAGE BREAK--- Amounts Reported for Governmental Activities in the Statement of Activities are Different Because: Net Changes in Fund Balances - Total Governmental Funds 940,041 $ Governmental funds report capital outlays as expenditures. However, in the statement of activities, the cost of those assets is allocated over their estimated useful lives and reported as depreciation expense. This is the amount by which depreciation of ($982,078) exceeded capital assets additions of $657,161 in the current period. (324,917) Repayment of long-term debt principal is an expenditure in the governmental funds, but the repayment reduces long-term liabilities in the statement of net position. These include payments of capital leases of $96,376, decrease in accrued interest payable $3,305 and change in accrued compensated absences of ($1,439). 98,242 Change in Net Position of Governmental Activities 713,366 $ Year Ended December 31, 2018 TOWN OF MONUMENT, COLORADO RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES The accompanying notes are an integral part of the financial statements. 6 ---PAGE BREAK--- 2018 2017 ASSETS Current Assets Cash and Investments 222,405 $ 208,023 $ Restricted Cash and Investments 658,844 675,000 Accounts Receivable 119,916 108,548 Prepaid Tap Fees - Water Line Loop 471,110 471,110 Total Current Assets 1,472,275 1,462,681 Noncurrent Assets Capital Assets, net of accumulated depreciation 8,405,950 7,651,577 TOTAL ASSETS 9,878,225 9,114,258 LIABILITIES Current Liabilities Accounts Payable 61,740 48,283 Accrued Expenses 9,225 - Accrued Interest Payable 2,205 2,205 Accrued Compensated Absences, Current Portion 1,719 3,358 Leases Payable, Current Portion 51,795 63,220 Total Current Liabilities 126,684 117,066 Noncurrent Liabilities Deposits 5,800 14,500 Accrued Compensated Absences 15,470 30,226 Leases Payable 59,298 115,844 Total Noncurrent Liabilities 80,568 160,570 TOTAL LIABILITIES 207,252 277,636 NET POSITION Net Investment in Capital Assets 8,294,857 7,472,513 Restricted for Future Water Storage 658,844 675,000 Restricted for Water Line Loop 471,110 471,110 Unreserved 246,162 217,999 TOTAL NET POSITION 9,670,973 $ 8,836,622 $ TOWN OF MONUMENT, COLORADO STATEMENT OF NET POSITION PROPRIETARY FUND TYPE December 31, 2018 The accompanying notes are an integral part of the financial statements. 7 ---PAGE BREAK--- 2018 2017 OPERATING REVENUES Charges for Services 1,615,974 $ 1,453,585 $ Miscellaneous Income 34,270 18,226 TOTAL OPERATING REVENUES 1,650,244 1,471,811 OPERATING EXPENSES Operations and Maintenance 1,096,140 961,316 Administrative and General 52,968 67,754 Depreciation 393,269 356,416 TOTAL OPERATING EXPENSES 1,542,377 1,385,486 OPERATING INCOME (LOSS) 107,867 86,325 NON-OPERATING REVENUES (EXPENSES) Sales Taxes 232,000 177,354 Interest Income 19,662 10,422 Interest Expenses (5,129) (8,864) TOTAL NON-OPERATING REVENUES (EXPENSES) 246,533 178,912 INCOME BEFORE CAPITAL CONTRIBUTIONS 354,400 265,237 CAPITAL CONTRIBUTIONS AND TRANSFERS OUT Capital Contributions Tap Fees 652,730 344,050 Transfers Out (172,779) (69,645) TOTAL CAPITAL CONTRIBUTIONS AND TRANSFERS OUT 479,951 274,405 NET INCOME 834,351 539,642 NET POSITION, Beginning 8,836,622 8,296,980 NET POSITION, Ending 9,670,973 $ 8,836,622 $ TOWN OF MONUMENT, COLORADO STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION PROPRIETARY FUND TYPE Year Ended December 31, 2018 The accompanying notes are an integral part of the financial statements. 8 ---PAGE BREAK--- 2018 2017 CASH FLOWS FROM OPERATING ACTIVITIES Cash Received from Customers 1,604,606 $ 1,463,223 $ Cash Received from Others 34,270 18,226 Cash Paid to Suppliers (655,774) (1,068,423) Cash Paid to Employees (487,047) (406,690) Net Cash Provided by Operating Activities 496,055 6,336 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Sales Tax Received 232,000 177,354 Expenses paid by Other Funds - (33,354) Transfers to Other Funds (172,779) (69,645) Net Cash Provided by Noncapital Financing Activities 59,221 74,355 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Purchase of Capital Assets (1,147,642) (438,335) Bond, Loan and Lease Principal Payments (67,971) (130,701) Interest Payments (5,129) (8,864) Capital Contributions Tap Fees 652,730 344,050 Deposits Received from Customers (8,700) 2,900 Net Cash Provided (Used) by Capital and Related Financing Activities (576,712) (230,950) CASH FLOWS FROM INVESTING ACTIVITIES Interest Received 19,662 10,422 Net Increase (Decrease) in Cash and Cash Equivalents (1,774) (139,837) CASH AND CASH EQUIVALENTS, Beginning 883,023 1,022,860 CASH AND CASH EQUIVALENTS, Ending 881,249 $ 883,023 $ RECONCILIATION OF OPERATING INCOME TO NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES Operating Income 107,867 $ 86,325 $ Adjustments to Reconcile Operating Income to Net Cash Provided (Used) by Operating Activities Depreciation and Amortization 393,269 356,416 Changes in Assets and Liabilities Accounts Receivable (11,368) 9,638 Due to Other Funds - (389,881) Accounts Payable 13,457 (26,914) Accrued Expenses 9,225 (8,355) Accrued Compensated Absences (16,395) (20,893) Total Adjustments 388,188 (79,989) Net Cash Provided by Operating Activities 496,055 $ 6,336 $ TOWN OF MONUMENT, COLORADO STATEMENT OF CASH FLOWS PROPRIETARY FUND TYPE Year Ended December 31, 2018 Increase (Decrease) in Cash and Cash Equivalents The accompanying notes are an integral part of the financial statements. 9 ---PAGE BREAK--- TOWN OF MONUMENT, COLORADO NOTES TO FINANCIAL STATEMENTS December 31, 2018 10 NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The accounting policies of the Town of Monument, Colorado (the “Town”) conform to generally accepted accounting principles as applicable to governments. The Governmental Accounting Standards Board (GASB) is the accepted standard setting body for establishing governmental accounting and financial reporting principles. Following is a summary of the more significant policies. Reporting Entity In accordance with governmental accounting standards, the Town has considered the possibility of inclusion of additional entities in its basic financial statements. The definition of the reporting entity is based primarily on financial accountability. The Town is financially accountable for organizations that make up its legal entity. It is also financially accountable for legally separate organizations if Town officials appoint a voting majority of the organization’s governing body and either it is able to impose its will on that organization or there is a potential for the organization to provide specific financial benefits to, or to impose specific financial burdens on, the Town. The Town may also be financially accountable for governmental organizations that are fiscally dependent upon it. Based on the application of these criteria, the Town does not include additional organizations in its reporting entity. Government-Wide and Fund Financial Statements The government-wide financial statements the statement of net position and the statement of activities) report information on all of the nonfiduciary activities of the Town. For the most part, the effect of interfund activity has been removed from these statements. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which rely to a significant extent on fees and charges for support. The statement of net position reports all financial, capital and debt resources of the Town. The difference between assets, liabilities and deferred inflows of the Town is net position. The statement of activities demonstrates the degree to which the direct expenses of the given function or segments are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include 1) charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function or segment and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not properly included among program revenues are reported instead as general revenues. ---PAGE BREAK--- TOWN OF MONUMENT, COLORADO NOTES TO FINANCIAL STATEMENTS December 31, 2018 11 NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Government-Wide and Fund Financial Statements (Continued) Separate financial statements are provided for governmental funds and proprietary funds. Major individual governmental funds are reported as separate columns in the fund financial statements. Measurement Focus, Basis of Accounting, and Financial Statement Presentation The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting, as are the proprietary fund financial statements. Revenues are recorded when earned and expenses are recorded when the liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met. Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collected within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the Town considers revenues to be available if they are collected within 60 days of the end of the current fiscal period. Property taxes, specific ownership taxes, grants, and interest associated with the current fiscal period are all considered to be susceptible to accrual and have been recognized as revenues of the current fiscal period. All other revenue items are considered to be measurable and available only when cash is received by the Town. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures related to compensated absences, are recorded only when payment is due. Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund’s principal ongoing operations. Operating expenses for enterprise funds include the cost of sales and services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses. When both restricted and unrestricted resources are available for use, it is the Town’s practice to use restricted resources first, then unrestricted resources as they are needed. ---PAGE BREAK--- TOWN OF MONUMENT, COLORADO NOTES TO FINANCIAL STATEMENTS December 31, 2018 12 NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Measurement Focus, Basis of Accounting, and Financial Statement Presentation (Continued) In the fund financial statements, the Town reports the following major governmental funds: The General Fund is the Town’s primary operating fund. It accounts for all financial resources of the Town, except those required to be accounted for in another fund. The 2A Water ASD Fund accounts for the revenues and expenditures allocated for water projects. The Town also reports the following major proprietary fund: The Water Fund accounts for the financial activities associated with the provision of water services. Cash and Investments Cash equivalents include investments with original maturities of three months or less. Investments are recorded at fair value. Capital Assets Capital assets, which include property and equipment, are reported in the applicable governmental or business-type activities columns in the government-wide financial statements. Capital assets are defined by the Town as assets with an initial, individual cost of more than $5,000 and an estimated useful life in excess of one year. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital assets are recorded at estimated fair market value at the date of donation. The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend assets’ lives are not capitalized. Property and equipment of the Town is depreciated using the straight line method over the following estimated useful lives: Water Rights 50 years Wells and Treatment Plant 30 years Infrastructure 30 years Transmission & Distribution 10 years Buildings 5 – 30 years Furniture, Equipment and Vehicles 3 – 10 years Park and Street Improvements 7 – 20 years ---PAGE BREAK--- TOWN OF MONUMENT, COLORADO NOTES TO FINANCIAL STATEMENTS December 31, 2018 13 NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Compensated Absences Employees of the Town are allowed to accumulate unused vacation time. Upon termination of employment from the Town, an employee will be compensated for all accrued vacation 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, 2018 14 NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Fund Balance Classification The governmental fund financial statements present fund balances based on classifications that comprise a hierarchy that is based primarily on the extent to which the Town is bound to honor constraints on the specific purposes for which amounts in the respective governmental funds can be spent. The classifications used in the governmental fund financial statements are as follows:  Restricted – This classification includes amounts for which constraints have been placed on the use of the resources either externally imposed by creditors (such as through a debt covenant), grantors, contributors, or laws or regulations of other governments, or imposed by law through constitutional provisions or enabling legislation. The Town has classified Emergency Reserves as being restricted because their use is restricted by State Statute for declared emergencies. In addition, the Town has classified the fund balance in the Conservation Trust Fund as restricted because their use is restricted by State Statute.  Committed – This classification includes amounts that can be used only for specific purposes pursuant to constraints imposed by formal action of the Board of Trustees. These amounts cannot be used for any other purpose unless the Board of Trustees removes or changes the specified use by taking the same type of action (ordinance or resolution) that was employed when the funds were initially committed. This classification also includes contractual obligations to the extent that existing resources have been specifically committed for use in satisfying those contractual requirements. The Town’s committed resources are presented in the governmental fund balance sheet as of December 31, 2018.  Unassigned – This classification includes the residual fund balance for the General Fund. The Unassigned classification also includes negative residual fund balance of any other governmental fund that cannot be eliminated by offsetting of Assigned fund balance amounts. The Town would typically use Restricted fund balances first, followed by Committed resources, and then Assigned resources, as appropriate opportunities arise, but reserves the right to selectively spend Unassigned Property Taxes Property taxes are levied on November 1 and attach as an enforceable lien on property on January 1. Taxes are payable in full on April 30 or in two installments on February 28 and June 15. The County Treasurer’s office collects property taxes and remits to the Town on a basis. ---PAGE BREAK--- TOWN OF MONUMENT, COLORADO NOTES TO FINANCIAL STATEMENTS December 31, 2018 15 NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Property Taxes (Continued) Since property tax revenues are collected in arrears during the succeeding year, a receivable and corresponding deferred revenue are recorded at December 31. As the tax is collected in the succeeding year, the deferred revenue is recognized as revenue and the receivable is reduced. NOTE 2: STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY Budgets and Budgetary Accounting The Town follows these procedures in establishing the budgetary data reflected in the financial statements:  In October, the Town staff submits to the Town Council a proposed operating budget for the fiscal year commencing the following January 1. The operating budget includes proposed expenditures and the means of financing them.  Public hearings are conducted to obtain taxpayer comments.  Prior to December 15, the budget is legally enacted through passage of an ordinance.  The Town Administration is authorized to transfer budgeted amounts between departments within any fund. However, any revisions that alter the total expenditures of any fund must be approved by the Town Council.  Budgets are legally adopted for all funds of the Town. Budgets for the General and Special Revenue Funds are adopted on a basis consistent with generally accepted accounting principles (GAAP). The Budgetary comparison presented for the Enterprise Fund is presented on a non-GAAP budgetary basis. Capital outlay and debt payments are budgeted as expenditures and depreciation is not budgeted.  Budgeted amounts in the financial statements are as originally adopted or as amended by the Town Council. All appropriations lapse at year end. Colorado governments may not exceed budgeted appropriations at the fund level. ---PAGE BREAK--- TOWN OF MONUMENT, COLORADO NOTES TO FINANCIAL STATEMENTS December 31, 2018 16 NOTE 3: DEPOSITS AND INVESTMENTS A summary of deposits and investments as of December 31, 2018 follows: Petty Cash $ 1,562 Cash Deposits 762,737 Investments 3,321,671 Total $ 4,085,970 The above amounts are classified in the statement of net position as follows: Cash and Investments $ 3,418,996 Restricted Cash and Investments 666,974 Total $ 4,085,970 Cash Deposits 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, 2018, the Town had deposits with financial institutions with a carrying amount of $762,736. The bank balances with the financial institutions totaling $869,755, of which $456,594 were covered by the FDIC and $308,731 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. ---PAGE BREAK--- TOWN OF MONUMENT, COLORADO NOTES TO FINANCIAL STATEMENTS December 31, 2018 17 NOTE 3: DEPOSITS AND INVESTMENTS (Continued) Colorado revised statutes limit investment maturities to five years or less unless formally approved by the Board of Trustees. 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  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, 2018, the Town had the following investments: Maturity 2018 Colorado Liquid Government Weighted Average Asset Trust (COLOTRUST) under 60 days $ 3,321,671 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. COLOTUST 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. ---PAGE BREAK--- TOWN OF MONUMENT, COLORADO NOTES TO FINANCIAL STATEMENTS December 31, 2018 18 NOTE 3: DEPOSITS AND INVESTMENTS (Continued) 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 $ 658,844 Parks and Recreation – Conservation Trust Fund 8,130 Total $ 666,974 Future Water Storage – The Town has restricted $658,844 of the Water Fund’s cash balance for future water storage in relation to an intergovernmental agreement. The Town also restricted net position of $658,844 for future water storage in relation to this agreement. Parks and Recreation – The Town has restricted cash of $8,130 in the Conservation Trust Fund for future parks and recreation expenditures. NOTE 4: INTERFUND TRANSFERS Interfund transfers for the year ended December 31, 2018, consisted of the following: Transfers In Transfers Out Amount General Water $ 172,779 Community Development General 20,000 Total $ 192,779 During the year ended December 31, 2018, the Water Fund transferred to the General Fund an amount for administrative costs and fees. The General Fund transferred to the Community Fund an amount budgeted for community projects. ---PAGE BREAK--- TOWN OF MONUMENT, COLORADO NOTES TO FINANCIAL STATEMENTS December 31, 2018 19 NOTE 5: CAPITAL ASSETS Capital assets activity for the year ended December 31, 2018 is summarized below: Depreciation expense was charged to functions/programs of the Town as follows: Governmental Activities General Government $ 124,548 Public Safety 33,492 Public Works 772,224 Parks and Recreation 51,814 Total $ 982,078 Balances Balances 12/31/2017 Additions Deletions 12/31/2018 Governmental Activities: Capital Assets, not being depreciated Land 1,767,122 $ - $ - $ 1,767,122 $ Capital Assets, being depreciated Buildings 3,914,197 31,019 - 3,945,216 Infrastructure 8,367,154 - - 8,367,154 Water Rights 135,324 - - 135,324 Furniture and Equipment 766,857 89,058 - 855,915 Vehicles and Street Equipment 1,852,493 60,036 - 1,912,529 Park Improvements 643,318 23,064 - 666,382 Street Improvements 5,118,084 453,984 - 5,572,068 Total Capital Assets, being depreciated 20,797,427 657,161 - 21,454,588 Less accumulated depreciation Buildings (1,337,083) (128,347) - (1,465,430) Infrastructure (4,926,059) (278,905) - (5,204,964) Water Rights (23,750) (2,706) - (26,456) Furniture and Equipment (524,792) (63,409) - (588,201) Vehicles and Street Equipment (1,423,905) (87,129) - (1,511,034) Park Improvements (352,091) (38,024) - (390,115) Street Improvements (2,902,471) (383,558) - (3,286,029) Total accumulated depreciation (11,490,151) (982,078) - (12,472,229) Total Capital Assets, being depreciated, net 9,307,276 (324,917) - 8,982,359 Governmental Activities Capital Assets, net 11,074,398 $ (324,917) $ - $ 10,749,481 $ ---PAGE BREAK--- TOWN OF MONUMENT, COLORADO NOTES TO FINANCIAL STATEMENTS December 31, 2018 20 NOTE 5: CAPITAL ASSETS (Continued) Balances Balances 12/31/2017 Additions Deletions 12/31/2018 Business-type Activities: Capital Assets, not being depreciated Water Master Plan 664,971 $ - $ - $ 664,971 $ Construction in Progress 2,933,655 - - 2,933,655 Total Capital Assets, not being depreciated 3,598,626 - - 3,598,626 Capital Assets, being depreciated Water Rights 125,000 - - 125,000 Alluvium Wells 420,392 - - 420,392 Public Works Building 118,897 7,485 - 126,382 Iron Treatment Plant 287,854 - - 287,854 Water Treatment Plant 1,199,322 - - 1,199,322 Other Equipment 1,222,597 5,995 - 1,228,592 Slabaugh Well 191,390 - - 191,390 Wells/Treatment 7,807,639 1,096,042 - 8,903,681 Transmission & Distribution 2,127,426 - - 2,127,426 Vehicles 384,292 38,120 - 422,412 Total Capital Assets, being depreciated 13,884,809 1,147,642 - 15,032,451 Less accumulated depreciation Water Rights (60,000) (2,500) - (62,500) Alluvium Wells (394,599) (3,684) - (398,283) Public Works Building (43,254) (5,052) - (48,306) Iron Treatment Plant (283,055) (4,799) - (287,854) Water Treatment Plant (466,925) (39,977) - (506,902) Other Equipment (756,080) (62,266) - (818,346) Slabaugh Well (97,613) (3,828) - (101,441) Wells/Treatment (5,743,134) (183,334) - (5,926,468) Transmission & Distribution (1,694,252) (59,493) - (1,753,745) Vehicles (292,946) (28,336) - (321,282) Total accumulated depreciation (9,831,858) (393,269) - (10,225,127) Total Capital Assets, being depreciated, net 4,052,951 754,373 - 4,807,324 Business-type Activities Capital Assets, net 7,651,577 $ 754,373 $ - $ 8,405,950 $ ---PAGE BREAK--- TOWN OF MONUMENT, COLORADO NOTES TO FINANCIAL STATEMENTS December 31, 2018 21 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, 2018. Accrued Compensated Absences are being paid from resources generated by the General Fund. Capital Leases The Town has entered into several capital lease agreements to purchase equipment which will be paid from revenues of the General Fund. These leases require interest to be paid ranging from 2.12% to 9.16%. These leases mature from 2020 – 2021. Subsequent to December 31, 2018, the Town entered into two capital lease agreements for the purchase of vehicles and equipment in the amounts of $186,285 and $159,509, respectively. The first lease requires quarterly principal and interest payments of $16,391, commencing July 1, 2019 through April 1, 2022. Interest accrues at 3.54% per annum. The second lease requires quarterly principal and interest payments of $8,703, commencing July 1, 2019 through April 1, 2024. Interest accrues at 3.48% per annum. Following is a schedule of the future minimum lease payments required under the outstanding capital lease obligations at December 31, 2018: Balance Balance Due Within 12/31/2017 Additions Deletions 12/31/2018 One Year Govenmental Activities Capital Leases 263,668 $ - $ 96,376 $ 167,292 $ 56,254 $ Accrued Compensated Absences 320,115 354,166 352,727 321,554 32,155 583,783 $ 354,166 $ 449,103 $ 488,846 $ 88,409 $ Year Ended December 31 2019 60,555 $ 2020 57,794 2021 57,367 Total Minimum Lease Payments 175,716 Less: Interest (8,424) Present Value of Future Minimum Lease Payments 167,292 $ ---PAGE BREAK--- TOWN OF MONUMENT, COLORADO NOTES TO FINANCIAL STATEMENTS December 31, 2018 22 NOTE 6: LONG-TERM DEBT (Continued) Business-Type Activities Following is a summary of long-term debt transactions for the business-type activities for the year ended December 31, 2018. Capital Leases The Town has entered into several capital lease agreements to purchase equipment which will be paid from revenues of the Water Fund. These leases require interest to be paid ranging from 2.12% to 2.36%. These leases mature from 2017-2020. Future Debt Service Requirements Following is a schedule of the future minimum lease payments required under the outstanding capital lease obligations at December 31, 2018. Conduit Debt In January 2014, the Town issued $15,650,000 Refunding and Improvement Variable Rate Revenue Bonds for the Discover Goodwill of Southern and Western Colorado Project to provide financial assistance to a Colorado nonprofit entity to acquire, construct and equip retail facilities for donated goods. Neither the Town, State, nor any political subdivision thereof is obligated in any manner for the repayment of the bonds. Accordingly, the bonds are not reported as a liability in the Town’s financial statements. Outstanding bonds at December 31, 2018 totaled $12,624,333 Balance Balance Due Within 12/31/2017 Additions Deletions 12/31/2018 One Year Business-type Activities Capital Leases 179,064 $ ‐ $ 67,971 $ 111,093 $ 51,795 $ Accrued Compensated Absences 33,584 26,753 43,148 17,189 1,719 212,648 $ 26,753 $ 111,119 $ 128,282 $ 53,514 $ Year Ended December 31 2019 54,420 $ 2020 60,626 Total Minimum Lease Payments 115,046 Less: Interest (3,953) Present Value of Future Minimum Lease Payments 111,093 $ ---PAGE BREAK--- TOWN OF MONUMENT, COLORADO NOTES TO FINANCIAL STATEMENTS December 31, 2018 23 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, 2018, the Town contributions were $118,412, equal to the required contribution. The deferred compensation is not available to employees until termination, retirement, death or unforeseeable emergency. NOTE 8: PUBLIC ENTITY RISK POOL The Town is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors and omissions; injuries to employees; and natural disasters. For these risks of loss, the Town is involved with the Colorado Intergovernmental Risk Sharing Agency (CIRSA), a separate and independent governmental and legal entity formed by intergovernmental agreement by member municipalities pursuant to the provision of 24-10-115.5, Colorado Revised Statutes (1982 Replacement Volume) and Colorado Constitution, Article XIV, Section 18(2). The purposes of CIRSA are to provide members defined liability, property, and workers compensation coverages and to assist members in preventing and reducing losses and injuries to municipal property and to persons or property which might result in claims being made against members of CIRSA, their employees and officers. It is the intent of the members of CIRSA to create an entity in perpetuity which will administer and use funds contributed by the members to defend and indemnify, in accordance with the bylaws, any member of CIRSA against stated liability of loss, to the limit of the financial resources of CIRSA. It is also the intent of the members to have CIRSA provide continuing stability and availability of needed coverages at reasonable costs. All income and assets of CIRSA shall be at all times dedicated to the exclusive benefit of its members. CIRSA is a separate legal entity and the Town does not approve budgets nor does it have the ability to significantly affect the operations of entity. ---PAGE BREAK--- TOWN OF MONUMENT, COLORADO NOTES TO FINANCIAL STATEMENTS December 31, 2018 24 NOTE 9: COMMITMENTS AND CONTINGENCIES Monument Lake and Dam During 1999, the Colorado Legislature enacted a law, which would grant ownership of the dam and, water storage rights to the town upon the completion of the reconstruction of the dam and acceptance by the Town. The Town is awaiting the deed from the Governor’s office. Construction was completed in September 2003; however, there are ongoing improvements being made prior to the transfer of ownership. Litigation The Town is involved in pending and threatened litigation and investigation of the Town’s finances as of December 31, 2018. However, the outcome of the litigation and investigation cannot be determined at this time. Tabor Amendment Colorado voters passed an amendment to the State Constitution, Article X, Section 20, which has several limitations, including revenue raising, spending abilities, and other specific requirements of state and local government. In November 1996, voters within the Town approved the collection, retention and expenditure of the all revenues generated by the Town in 1996 and subsequent years, notwithstanding the provisions of the Amendment. The Town believes it is in substantial compliance with the Amendment. The Town has established an emergency reserve, representing 3% of qualifying expenditures, as required by the Amendment. At December 31, 2018, the emergency reserve of $223,000 was recorded in the General Fund. ---PAGE BREAK--- REQUIRED SUPPLEMENTARY INFORMATION ---PAGE BREAK--- VARIANCE ORIGINAL FINAL Positive 2017 BUDGET BUDGET ACTUAL (Negative) ACTUAL REVENUES Taxes 4,645,881 $ 4,918,368 $ 5,167,972 $ 249,604 $ 4,885,455 $ Licenses and Permits 59,780 60,166 64,632 4,466 55,730 Charges for Services 237,330 211,100 226,739 15,639 185,580 Intergovernmental 311,389 327,625 416,745 89,120 316,795 Court 60,400 58,102 55,616 (2,486) 96,837 Interest 3,505 19,700 21,081 1,381 7,693 Miscellaneous - 100 4,000 3,900 3,924 TOTAL REVENUES 5,318,285 5,595,161 5,956,785 361,624 5,552,014 EXPENDITURES Current General Government 2,206,612 2,395,640 2,309,369 86,271 2,075,304 Public Safety 1,834,218 1,876,913 1,888,180 (11,267) 1,626,142 Public Works 1,557,565 1,583,369 1,474,222 109,147 1,273,689 Capital Outlay 327,875 329,575 388,346 (58,771) 487,823 Debt Service Principal 7,200 110,350 110,209 141 193,554 Interest 2,000 8,450 7,986 464 6,283 TOTAL EXPENDITURES 5,935,470 6,304,297 6,178,312 125,985 5,662,795 EXCESS OF REVENUES OVER (UNDER) EXPENDITURES (617,185) (709,136) (221,527) 487,609 (110,781) OTHER FINANCING SOURCES (USES) Proceeds from Issuance of Debt - - - - 235,758 Transfers In 175,331 173,136 172,779 (357) 69,645 Transfers (Out) (20,000) (20,000) (20,000) - - TOTAL OTHER FINANCING SOURCES (USES) 155,331 153,136 152,779 (357) 305,403 NET CHANGE IN FUND BALANCE (461,854) (556,000) (68,748) 487,252 194,622 FUND BALANCE, Beginning 680,155 774,300 774,300 - 579,678 FUND BALANCE, Ending 218,301 $ 218,300 $ 705,552 $ 487,252 $ 774,300 $ TOWN OF MONUMENT, COLORADO GENERAL FUND BUDGETARY COMPARISON SCHEDULE Year Ended December 31, 2018 (With Comparative Actual Totals for the Year Ended December 31, 2017) 2018 See the accompanying Independent Auditor's Report. 25 ---PAGE BREAK--- VARIANCE ORIGINAL FINAL Positive 2017 BUDGET BUDGET ACTUAL (Negative) ACTUAL REVENUES Sales Tax 788,603 $ 1,149,328 $ 1,214,302 $ 64,974 $ 943,555 $ Interest 7,590 23,248 26,527 3,279 7,334 TOTAL REVENUES 796,193 1,172,576 1,240,829 68,253 950,889 EXPENDITURES Public Works 124,843 132,284 125,125 7,159 155,205 Capital Outlay 2,515,280 2,822,206 - 2,822,206 - TOTAL EXPENDITURES 2,640,123 2,954,490 125,125 2,829,365 155,205 NET CHANGE IN FUND BALANCE (1,843,930) (1,781,914) 1,115,704 2,897,618 795,684 FUND BALANCE, Beginning 1,843,930 1,781,914 1,781,914 - 986,230 FUND BALANCE, Ending - $ - $ 2,897,618 $ 2,897,618 $ 1,781,914 $ 2018 (With Comparative Actual Totals for the Year Ended December 31, 2017) TOWN OF MONUMENT, COLORADO 2A WATER ASD FUND BUDGETARY COMPARISON SCHEDULE Year Ended December 31, 2018 See the accompanying Independent Auditor's Report. 26 ---PAGE BREAK--- SUPPLEMENTARY INFORMATION ---PAGE BREAK--- STORM COMMUNITY CONSERVATION TRAFFIC DRAINAGE DEVELOPMENT TRUST IMPACT FEE IMPACT FEE FUND FUND FUND FUND ASSETS Cash and Investments 15,531 $ - $ 69,723 $ 12,695 $ Restricted Cash and Investments - 8,130 - - TOTAL ASSETS 15,531 $ 8,130 $ 69,723 $ 12,695 $ FUND EQUITY Restricted for Parks and Recreation - $ 8,130 $ - $ - $ Committed 15,531 - 69,723 12,695 TOTAL FUND EQUITY 15,531 $ 8,130 $ 69,723 $ 12,695 $ TOWN OF MONUMENT, COLORADO NONMAJOR GOVERNMENTAL FUNDS COMBINING BALANCE SHEET December 31, 2018 SPECIAL REVENUE FUNDS See the accompanying Independent Auditor's Report. 27 ---PAGE BREAK--- 2018 2017 97,949 $ 209,886 $ 8,130 3,108 106,079 $ 212,994 $ 8,130 $ 3,108 $ 97,949 209,886 106,079 $ 212,994 $ TOTALS ---PAGE BREAK--- STORM COMMUNITY CONSERVATION TRAFFIC DRAINAGE DEVELOPMENT TRUST IMPACT FEE IMPACT FEE FUND FUND FUND FUND REVENUES Licenses and Permits 67,964 $ - $ - $ - $ Intergovernmental - 43,762 - - Charges for Services - - 50,819 67,009 Sales Tax - - - - Interest 704 62 3,574 603 Miscellaneous 5,350 - - - TOTAL REVENUES 74,018 43,824 54,393 67,612 EXPENDITURES General Government 103,938 - - - Parks and Recreation - 1,398 - - Capital Outlay - 37,404 160,965 63,057 Debt Service Principal - - - - Interest and Fiscal Charges - - - - TOTAL EXPENDITURES 103,938 38,802 160,965 63,057 EXCESS OF REVENUES OVER (UNDER) EXPENDITURES (29,920) 5,022 (106,572) 4,555 OTHER FINANCING SOURCES (USES) Transfers In 20,000 - - - CHANGE IN FUND BALANCES (9,920) 5,022 (106,572) 4,555 FUND BALANCES, Beginning 25,451 3,108 176,295 8,140 FUND BALANCES, Ending 15,531 $ 8,130 $ 69,723 $ 12,695 $ Year Ended December 31, 2018 SPECIAL REVENUE FUNDS TOWN OF MONUMENT, COLORADO NONMAJOR GOVERNMENTAL FUNDS STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES See the accompanying Independent Auditor's Report. 28 ---PAGE BREAK--- 2018 2017 67,964 $ 63,479 $ 43,762 41,706 117,828 180,999 - 167,790 4,943 2,960 5,350 2,000 239,847 458,934 103,938 88,407 1,398 40,433 261,426 317,888 - 159,000 - 8,790 366,762 614,518 (126,915) (155,584) 20,000 - (106,915) (155,584) 212,994 368,578 106,079 $ 212,994 $ TOTALS ---PAGE BREAK--- VARIANCE ORIGINAL FINAL Positive 2017 BUDGET BUDGET ACTUAL (Negative) ACTUAL REVENUES Business Licenses 63,750 $ 61,325 $ 67,964 $ 6,639 $ 63,479 $ Interest 450 652 704 52 451 Miscellaneous 3,000 5,350 5,350 - 2,000 TOTAL REVENUES 67,200 67,327 74,018 6,691 65,930 EXPENDITURES General Government 112,778 112,778 103,938 8,840 88,407 Capital Outlay - - - - - TOTAL EXPENDITURES 112,778 112,778 103,938 8,840 88,407 EXCESS OF REVENUES OVER (UNDER) EXPENDITURES (45,578) (45,451) (29,920) 15,531 (22,477) OTHER FINANCING SOURCES Transfers In 20,000 20,000 20,000 - - NET CHANGE IN FUND BALANCE (25,578) (25,451) (9,920) 15,531 (22,477) FUND BALANCE, Beginning 25,578 25,451 25,451 - 47,928 FUND BALANCE, Ending - $ - $ 15,531 $ 15,531 $ 25,451 $ 2018 (With Comparative Actual Totals for the Year Ended December 31, 2017) TOWN OF MONUMENT, COLORADO COMMUNITY DEVELOPMENT FUND BUDGETARY COMPARISON SCHEDULE Year Ended December 31, 2018 See the accompanying Independent Auditor's Report. 29 ---PAGE BREAK--- VARIANCE ORIGINAL FINAL Positive 2017 BUDGET BUDGET ACTUAL (Negative) ACTUAL REVENUES Lottery Revenues 40,000 $ 43,756 $ 43,762 $ 6 $ 41,706 $ Interest 50 62 62 - 26 TOTAL REVENUES 40,050 43,818 43,824 6 41,732 EXPENDITURES Parks and Recreation 43,934 46,926 38,802 8,124 57,847 NET CHANGE IN FUND BALANCE (3,884) (3,108) 5,022 8,130 (16,115) FUND BALANCE, Beginning 3,884 3,108 3,108 - 19,223 FUND BALANCE, Ending - $ - $ 8,130 $ 8,130 $ 3,108 $ (With Comparative Actual Totals for the Year Ended December 31, 2017) CONSERVATION TRUST FUND BUDGETARY COMPARISON SCHEDULE Year Ended December 31, 2018 2018 See the accompanying Independent Auditor's Report. 30 ---PAGE BREAK--- VARIANCE ORIGINAL FINAL Positive 2017 BUDGET BUDGET ACTUAL (Negative) ACTUAL REVENUES Traffic Impact Fees 145,000 $ 56,484 $ 50,819 $ (5,665) $ 122,898 $ Interest 2,000 3,516 3,574 58 2,253 TOTAL REVENUES 147,000 60,000 54,393 (5,607) 125,151 EXPENDITURES Capital Outlay 327,329 236,295 160,965 75,330 234,082 NET CHANGE IN FUND BALANCE (180,329) (176,295) (106,572) 69,723 (108,931) FUND BALANCE, Beginning 180,329 176,295 176,295 - 285,226 FUND BALANCE, Ending - $ - $ 69,723 $ 69,723 $ 176,295 $ 2018 (With Comparative Actual Totals for the Year Ended December 31, 2017) TOWN OF MONUMENT, COLORADO TRAFFIC IMPACT FEE FUND BUDGETARY COMPARISON SCHEDULE Year Ended December 31, 2018 See the accompanying Independent Auditor's Report. 31 ---PAGE BREAK--- VARIANCE ORIGINAL FINAL Positive 2017 BUDGET BUDGET ACTUAL (Negative) ACTUAL REVENUES Storm Drainage Impact Fees 90,000 $ 69,442 $ 67,009 $ (2,433) $ 58,101 $ Interest 100 558 603 45 230 TOTAL REVENUES 90,100 70,000 67,612 (2,388) 58,331 EXPENDITURES General Government - - - - - Capital Outlay 117,945 78,140 63,057 15,083 66,392 TOTAL EXPENDITURES 117,945 78,140 63,057 15,083 66,392 NET CHANGE IN FUND BALANCE (27,845) (8,140) 4,555 12,695 (8,061) FUND BALANCE, Beginning 27,845 8,140 8,140 - 16,201 FUND BALANCE, Ending - $ - $ 12,695 $ 12,695 $ 8,140 $ TOWN OF MONUMENT, COLORADO STORM DRAINAGE IMPACT FEE BUDGETARY COMPARISON SCHEDULE Year Ended December 31, 2018 (With Comparative Actual Totals for the Year Ended December 31, 2017) 2018 See the accompanying Independent Auditor's Report. 32 ---PAGE BREAK--- VARIANCE ORIGINAL FINAL Positive 2017 BUDGET BUDGET ACTUAL (Negative) ACTUAL REVENUES Charges for Services 1,626,603 $ 1,623,835 $ 1,615,974 $ (7,861) $ 1,453,585 $ Sales Tax 192,992 244,130 232,000 (12,130) 177,354 Tap Fees 315,000 654,000 652,730 (1,270) 344,050 Investment Income 9,944 20,443 19,662 (781) 10,422 Other Revenues 15,050 35,100 34,270 (830) 18,226 TOTAL REVENUES 2,159,589 2,577,508 2,554,636 (22,872) 2,003,637 EXPENDITURES Operations and Maintenance 1,242,709 1,239,114 1,096,140 142,974 961,316 Administration and General 88,350 47,715 52,968 (5,253) 67,754 Capital Outlay 184,675 1,158,000 1,147,642 10,358 438,335 Debt Service Principal - 67,971 67,971 - 130,701 Interest - 5,129 5,129 - 8,864 Transfers Out 175,331 173,136 172,779 357 69,645 TOTAL EXPENDITURES 1,691,065 2,691,065 2,542,629 148,436 1,676,615 NET INCOME, Budget Basis 468,524 $ (113,557) $ 12,007 125,564 $ 327,022 GAAP BASIS ADJUSTMENTS Capital Outlay 1,147,642 438,335 Depreciation (393,269) (356,416) Principal Paid on Long-Term Debt 67,971 130,701 NET INCOME, GAAP Basis 834,351 539,642 NET POSITION, Beginning 8,836,622 8,296,980 NET POSITION, Ending 9,670,973 $ 8,836,622 $ 2018 TOWN OF MONUMENT, COLORADO WATER FUND BUDGETARY COMPARISON SCHEDULE Year Ended December 31, 2018 (With Comparative Actual Totals for the Year Ended December 31, 2017) See the accompanying Independent Auditor's Report. 33 ---PAGE BREAK--- OTHER INFORMATION ---PAGE BREAK--- Financial Planning 02/01 The public report burden for this information collection is estimated to average 380 hours annually. Form # 350-050-36 City or County: TOWN OF MONUMENT, CO YEAR ENDING : December 2018 This Information From The Records Of (example - City of _ or County of Prepared By: BILL WENGERT TOWN OF MONUMENT, CO Phone: [PHONE REDACTED] A. Local B. Local C. Receipts from D. Receipts from Motor-Fuel Motor-Vehicle State Highway- Federal Highway Taxes Taxes User Taxes Administration 1. Total receipts available 2. Minus amount used for collection expenses 3. Minus amount used for nonhighway purposes 4. Minus amount used for mass transit 5. Remainder used for highway purposes AMOUNT AMOUNT A. Receipts from local sources: A. Local highway disbursements: 1. Local highway-user taxes 1. Capital outlay (from page 2) 200,616 a. Motor Fuel (from Item I.A.5.) 2. Maintenance: b. Motor Vehicle (from Item I.B.5.) 3. Road and street services: c. Total a. Traffic control operations 733,188 2. General fund appropriations 514,930 b. Snow and ice removal 47,077 3. Other local imposts (from page 2) 255,931 c. Other 4. Miscellaneous local receipts (from page 2) 33,369 d. Total through 780,265 5. Transfers from toll facilities 4. General administration & miscellaneous 86,027 6. Proceeds of sale of bonds and notes: 5. Highway law enforcement and safety a. Bonds - Original Issues 6. Total (1 through 5) 1,066,908 b. Bonds - Refunding Issues B. Debt service on local obligations: c. Notes 1. Bonds: d. Total + b. + 0 a. Interest 7. Total (1 through 6) 804,230 b. Redemption B. Private Contributions c. Total + 0 C. Receipts from State government 2. Notes: (from page 2) 262,678 a. Interest D. Receipts from Federal Government b. Redemption (from page 2) 0 c. Total + 0 E. Total receipts (A.7 + B + C + D) 1,066,908 3. Total (1.c + 2.c) 0 C. Payments to State for highways D. Payments to toll facilities E. Total disbursements (A.6 + B.3 + C + D) 1,066,908 Opening Debt Amount Issued Redemptions Closing Debt A. Bonds (Total) 0 1. Bonds (Refunding Portion) B. Notes (Total) 0 A. Beginning Balance B. Total Receipts C. Total Disbursements D. Ending Balance E. Reconciliation 0 1,066,908 1,066,908 0 0 Notes and Comments: FORM FHWA-536 (Rev. 1-05) PREVIOUS EDITIONS OBSOLETE (Next Page) LOCAL HIGHWAY FINANCE REPORT I. DISPOSITION OF HIGHWAY-USER REVENUES AVAILABLE FOR LOCAL GOVERNMENT EXPENDITURE ITEM III. DISBURSEMENTS FOR ROAD V. LOCAL ROAD AND STREET FUND BALANCE ITEM II. RECEIPTS FOR ROAD AND STREET PURPOSES IV. LOCAL HIGHWAY DEBT STATUS (Show all entries at par) ITEM AND STREET PURPOSES See the accompanying Independent Auditor's Report. 34 Local Highway Finance Report 2018 for CAFR ---PAGE BREAK--- STATE: Colorado YEAR ENDING (mm/yy): December 2018 AMOUNT AMOUNT A.3. Other local imposts: A.4. Miscellaneous local receipts: a. Property Taxes and Assessments a. Interest on investments b. Other local imposts: b. Traffic Fines & Penalities 33,369 1. Sales Taxes 0 c. Parking Garage Fees 2. Infrastructure & Impact Fees 117,827 d. Parking Meter Fees 3. Liens e. Sale of Surplus Property 4. Licenses 2,170 f. Charges for Services 5. Specific Ownership &/or Other 135,934 g. Other Misc. Receipts 6. Total through 255,931 h. Other c. Total + 255,931 i. Total through 33,369 (Carry forward to page 1) (Carry forward to page 1) AMOUNT AMOUNT C. Receipts from State Government D. Receipts from Federal Government 1. Highway-user taxes 230,679 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 31,999 d. Federal Transit Admin d. Other (Specify) e. U.S. Corps of Engineers e. Other (Specify) f. Other Federal f. Total through 31,999 g. Total through 0 4. Total + 2. + 3.f) 262,678 3. Total + 2.g) (Carry forward to page 1) ON NATIONAL OFF NATIONAL HIGHWAY HIGHWAY TOTAL SYSTEM SYSTEM A.1. Capital outlay: a. Right-Of-Way Costs 0 0 b. Engineering Costs 0 0 c. Construction: New Facilities 0 Capacity Improvements 0 0 System Preservation 0 200,616 200,616 System Enhancement & Operation 0 Total Construction + + + 0 200,616 200,616 d. Total Capital Outlay (Lines 1.a. + 1.b. + 1.c.5) 0 200,616 200,616 (Carry forward to page 1) Notes and Comments: FORM FHWA-536 (Rev.1-05) PREVIOUS EDITIONS OBSOLETE III. DISBURSEMENTS FOR ROAD AND STREET PURPOSES - DETAIL II. RECEIPTS FOR ROAD AND STREET PURPOSES - DETAIL LOCAL HIGHWAY FINANCE REPORT ITEM ITEM ITEM ITEM See the accompanying Independent Auditor's Report. 35