Document Monument_doc_7754be328c

TOWN OF MONUMENT, COLORADO BASIC FINANCIAL STATEMENTS December 31, 2017 ---PAGE BREAK--- INTRODUCTORY SECTION ---PAGE BREAK--- TOWN OF MONUMENT, COLORADO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2017 BOARD OF TRUSTEES Mayor Jeffery Kaiser Mayor Pro Tem Don Wilson Trustee Jeffrey Bornstein Trustee Kelly Elliott Trustee Greg Coopman Trustee Shea Medlicott Trustee Dennis Murphy ADMINISTRATIVE STAFF Chris Lowe – Town Manager Pamela Smith – Town Treasurer Laura Hogan – Town Clerk Jacob Shirk – Chief of Police Thomas Tharnish – Public Works Director Larry Manning – Planning Director Alicia Corley – 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 - x Basic Financial Statements Government – Wide Financial Statements Statements of Net Position 1 Statements of Activities 2 Fund Financial Statements Balance Sheets – Governmental Funds 3 Reconciliation of the Balance Sheet – Governmental Funds to the Statement of Net Position 4 Statement of Revenues, Expenditures and Changes in Fund Balances – Governmental Funds 5 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities 6 Statement of Net Position – Proprietary Fund Type 7 Statement of Revenues, Expenses and Changes in Fund Net Position – Proprietary Fund Type 8 Statement of Cash Flows – Proprietary Fund Type 9 Notes to Financial Statements 10 – 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 Debt Service Fund – Budgetary Comparison Schedule 33 Water Fund – Budgetary Comparison Schedule 34 OTHER INFORMATION Local Highway Finance Report 35 - 36 ---PAGE BREAK--- FINANCIAL SECTION ---PAGE BREAK--- a INDEPENDENT AUDITORS’ REPORT Honorable Mayor and Members of the Town Council Town of Monument Monument, Colorado Report on the Financial Statements We have audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the Town of Monument, Colorado, as of and for the year ended December 31, 2017, 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, 2017, 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, 2016, by which a report dated June 16, 2017 expressed an unmodified opinion. Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis and required budgetary information on pages i – x and 27- 28 be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Supplementary Information and Other Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Town’s basic financial statements. The accompanying supplementary information and other information, as listed in the table of contents, are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The supplementary information 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 27, 2018 ---PAGE BREAK--- i 2017 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, 2017. 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 2017 by $22,93,140 (net position). Of this amount, $2,483,691 (unrestricted net position) may be used for the Town’s obligations to citizens and creditors.  At December 31, 2017, the Town of Monument’s governmental funds reported combined ending fund balances of $2,769,208 an increase of $834,722 in comparison with the prior year. $558.682 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 $558,682, or 9.87% of the total General Fund expenditures. This is an increase of 3.7% from the prior year.  Sales and use taxes revenue, the Town’s largest source of revenue was $4,519,645 for 2017 as compared to $4,061,351 for the prior year, an increase of 11.3%. The key factor for this was an increase in commercial and residential development and a more robust economy in 2017. Using This Annual Report This discussion and analysis is intended to serve as an introduction to the Town of Monument’s basic financial statements. The Town of Monument’s basic financial statements comprise three components: 1) the government-wide financial statements 2) fund financial statements 3) notes to the financial statements Government-wide Financial Statements The government-wide financial statements are designed to provide readers with a broad overview of the Town of Monument’s finances, in a manner similar to a private-sector business. The statement of net position presents information on all the Town of Monument’s assets and liabilities, with the difference between the two reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the Town of Monument is improving or deteriorating. ---PAGE BREAK--- ii The statement of activities presents information showing how the Town of Monument’s net position changed during the most recent fiscal year. All changes in net position are reported as soon as the underlying event occurs, regardless of the timing of related cash flows. Thus, revenues and expenses reported in this statement for some items will result in cash flows in future fiscal periods uncollected taxes and earned but unused vacation leave). The government-wide financial statements distinguish functions of the Town of Monument that are principally supported by taxes and intergovernmental revenues (Governmental Activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (Business-type Activities). The Governmental Activities of the Town of Monument include general government, public safety (law enforcement & court), public works (streets, parks and recreation, cemetery) and planning. The Business-type Activities of the Town of Monument include water. Fund Financial Statements A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The Town of Monument, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All the Town’s funds can be divided into two categories: governmental funds and proprietary funds. Governmental funds – Most of the Town’s basic services are reported in governmental funds, which focus on how money flows into and out of those funds and the balances left at year-end that are available for spending. The funds are reported using an accounting method called modified accrual accounting, which measures cash and all other financial assets that can readily be converted to cash. The governmental funds statements provide a detailed short-term view of cash, the governmental fund operations and the basic services it provides. Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government- wide financial statements. By doing so, readers may better understand the long-term impact of the government’s near-term financing decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balance provide a reconciliation to facilitate this comparison between governmental funds and governmental activities. Proprietary fund – The enterprise fund of the proprietary fund type is used to report the same functions presented as business-type activities in the government-wide financial statements, but provide more detail and additional information, such as cash flow. Proprietary funds are reported in the same way that all activities are reported in the Statement of Net Position and the Statement of Activities. ---PAGE BREAK--- iii Notes to Financial Statements - The notes provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements. The notes to the financial statements can be found on pages 10 through 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 34. Financial Analysis of the Town as a Whole As noted earlier, net position may serve over time as a useful indicator of a government’s financial position. This is the 14th year the Town has reported using the GASB 34 model. Comparisons of 2016 to 2017 follow. In the case of the Town of Monument, assets exceeded liabilities by $20,765,907 at the end of 2016 and at the end of 2017 by $22,093,140 an increase in Total Net Position of $1,327,233 or 6.4%. Assets 2017 2016 2017 2016 2017 2016 Governmental Activities Governmental Activities Business- type Activities Business- type Activities Total Total Current and other assets $4,375,354 $ 3,498,333 1,462,681 $1,188,921 $ 5,838,035 $ 4,687,254 Capital assets, net 11,074,398 11,162,413 7,651,577 7,569,658 18,725,975 18,732,071 Total assets 15,499,752 14,660,746 9,114,258 8,758,579 24,564,010 23,419,325 Liabilities Long term liabilities 486,848 312,755 146,070 231,116 632,918 543,871 Other liabilities 812,552 1,085,414 131,566 230,483 944,118 1,315,897 Total liabilities 1,299,400 1,398,169 277,636 461,599 1,577,036 1,859,768 Deferred Inflow of Resources Deferred Property Tax Revenue 893,834 793,650 - - 893,834 793,650 Net Position Net investment in capital assets 10,778,718 10,757,529 7,472,513 7,259,893 18,251,231 18,017,422 Restricted 212,108 201,723 1,146,110 1,162,919 1,358,218 1,364,642 Unrestricted 2,265,692 1,509,675 217,999 (125,832) 2,483,691 1,383,843 Total net position $13,256,518 $12,468,927 $8,836,622 $8,296,980 $22,093,140 $20,765,907 ---PAGE BREAK--- iv The largest portion of the Town of Monument’s net position (83%) 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, $2,483,691, 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 2017 Governmental Type Activities 2016 Governmental Type Activities 2017 Business Type Activities 2016 Business Type Activities 2017 Total 2016 Total Revenues: Program revenues: Charges for Services $582,625 $499,899 1,453,585 1,305,262 $2,036,210 $1,805,161 Operating Grants & Contributions 83,675 328,461 - - 83,675 328,461 Capital Grants & Contributions 41,706 47,759 344,050 681,110 385,756 728,869 General revenues: Property taxes 900,282 844,132 - - 900,282 844,132 Sales taxes 4,713,504 4,200,563 177,354 176,553 4,890,858 4,377,116 Franchise taxes 382,667 358,620 - - 382,667 358,620 Other Taxes 233,467 223,636 - - 233,467 223,636 Investment income 17,987 11,154 10,422 5,834 28,409 16,998 Other Misc 5,924 19,522 18,226 25,474 24,150 44,996 Transfers 69,645 (21,865) (69,645) 21,865 - - Total revenues 7,031,482 6,511,881 1,933,992 2,216,098 8,965,474 8,727,979 Program expenses: General government 2,319,744 2,566,150 - - 2,319,744 2,566,150 Public safety 1,704,140 1,545,742 - - 1,704,140 1,545,742 Public works, Parks & Recreation 2,204,934 2,171,923 - - 2,204,934 2,171,923 Interest on long-term debt 15,073 22,890 8,864 16,629 23,937 39,519 Water - - 1,385,486 1,368,601 1,385,486 1,368,601 Total expenses 6,243,891 6,306,705 1,394,350 1,385,230 7,638,241 7,681,935 Increase (decrease) in net position 787,591 205,176 539,642 830,868 1,327,233 1,036,044 Net position 12/31/16 $12,468,927 $12,263,751 $8,296,980 $7,466,112 $20,765,907 $19,729,863 Net Position 12/31/17 $13,256,518 $12,468,927 $8,836,622 $8,296,980 $22,093,140 $20,765,907 ---PAGE BREAK--- vi Governmental Activities The following pie chart illustrates the governmental activities revenues. Sales and use taxes are the Town’s largest governmental activities revenue source at 68%. Property taxes are the second largest revenue source at 13% of the Town’s revenue for governmental activities. Charges for services include planning, traffic impact and storm drainage impact fees and along with franchise fees comprise the third largest revenue source of the Town’s governmental activities at The remaining franchise fees along with grants & contributions accounts for 9% of total revenues. Property & Specific Ownership Taxes 13% Sales, Use & Other Taxes 68% Franchise Fees 6% Investment income 0% Other miscellaneous 0% Charges for services 8% Operating grants and contributions 2% Capital grants and contriubtions 1% Revenues by Source - Governmental Activities - 2017 Actual Property & Specific Ownership Taxes Sales, Use & Other Taxes Franchise fees Investment income Other miscellaneous Charges for services Operating grants and contributions Capital grants and contriubtions ---PAGE BREAK--- vii Business-type Activities Charges for services account for 75% of the Town’s revenue for business-type activities. Sales taxes account for 10% and the remaining interest income, grants & contributions and miscellaneous revenue accounts for 15% 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. 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 2017. The Town is within range for the state- wide CML Salary Survey. Water Fund revenue was less than Budget by ($543,860) due to fees for service being less than budgeted and not funding a capital lease for water. Customer usage increased $148,323 from 2016 to 2017. Tap fee revenue in 2017 was $344,050 which was $20,050 more than budgeted. The Town is approaching build-out of residential properties that are the Town’s responsibility, so this revenue stream will continue to be minimal. Water billing revenue was $1,453,585 and Sales Tax Revenue was $177,354. Water Fund actual budgetary expenses were approximately $720,599 under budget in 2017 due to capital commitments not being spent. ---PAGE BREAK--- viii General Fund Budgetary Highlights The Board of Trustees must approve increases in the expenditure budget for any fund. Line item budget transfers are allowed within a fund with the approval of the Town Manager. The General Fund’s budgeted expenditures and transfers out were $6,331,612. Actual expenditures for 2017 were $5,662,795 an amount favorable to budgeted expenditures of $668,817. This positive variance was the result, in part, of salary savings; reduced Department expenditures and the Town’s decision not to purchase all approved capital items. The following pie chart shows the distribution of expenses by program/function. General government 37% Public safety - Law Enforcement/Court 29% Public works 22% Capital Outlay 9% Debt Services 3% General Fund Expenditures - 2017 Actual ---PAGE BREAK--- ix Capital Assets and Debt Administration Capital Assets The Town of Monument’s investment in capital assets for its governmental and business- type activities as of December 31, 2017 totaled $18,725,975 (net of accumulated depreciation). Water fund capital assets represent 41% of this total. The capital projects for the Town’s governmental activities consisted of expenditures to include $$41,000 for building R&M; $45,585 on furniture and equipment; $148,971 on vehicles and street equipment; $25,350 on park improvements and $544,805 on street improvements, for total capital outlay of $805,711. The Water Department spent $227,860 on well repairs and $210,475 on equipment for total capital outlay of $438,335. 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 2017. Payments of $352,554 were made on bonds, loans and capital lease obligations during the year. The Town did enter a new lease agreement in 2017 for Capital Asset Improvements for the Departments in the amount of $235,758. The Town’s long-term debt related to business-type activities decreased in 2017. Payments of $151,594 were made on bonds, loans and capital lease obligations. The Town did not enter a new lease agreement in 2017 for Capital Asset Improvements for the Water Department. Note 6 of the financial statements provide a detailed summary on the Town’s long-term debt. ---PAGE BREAK--- x Economic Factors and Next Year’s Budget and Rates The unemployment rate for El Paso County in 2017 was 2.8% down 0.3% from the 2016 average. This compares to the national average of 4.4% and state average of 2.7% for 2017. Total land use permits issued in 2017 were 353, with 332 residential and 21 commercial. This is up 44 permits from 2016, with most of the increase coming in new single-family homes. 2018 is expected to be higher than 2017 numbers, due to several new residential developments beginning in the Town. Total retail sales tax is budgeted at $4,443,415 for 2018, which compares to $4,079,565 in 2017, an increase of 8.9%. Property tax revenue is expected to increase $101,105 or 12% in 2018. This increase reflects a slight upswing in development over the previous year. The mill levy for 2018 is 6.289 mills. This levy brings the Town into compliance with Tabor and Gallagher laws. The mill levy for 2017 was 6.289 mills, unchanged since 2008. The 2018 budget includes capital projects, which includes new body cameras for the Police Department; asphalt work for the Town streets; bleachers at Dirty Woman Park; portable tower lights; heavy equipment tires and a shouldering attachment for the F450, all which total $300,000. In 2018 the Town segregated the majority of its capital improvements into the Capital Improvement Project Fund to better track capital. The General Fund has $180,000 in capital projects to include new sidewalks on Beacon Lite Road; a turf tractor; a pour and play tot lot and solar lights at Limbach Park. The Water Enterprise Fund has in-fund capital projects of computer software and hardware upgrades for the Badger meters and Scada system; Well 7 & 8 filter rehab; distribution lines repair and maintenance and a truck. All of these projects total $104,000. In the Capital Project Improvement Fund, the Water Enterprise Fund has $1,894,500 in projects, $1.8MM of which is to be financed over a 10-year period. This is for the booster station upgrade and well 4 & 5 treatment plant upgrade. There is also over $200,000 for projects on Raspberry Lane and changing to electric valves in Plant The ancillary funds have available cash for designated projects as they are assigned. The Town continues the process for compliance with the Federal National Pollutant Discharge Elimination System (NPDES) Clean Water Act and is pursuing renewable and re-use water sources. Requests for Information This financial report is designed to provide a general overview of the Town of Monument’s finances for all those with an interest in the government’s finances. Questions concerning any of the information provided in this report or additional financial information should be addressed to the Town Treasurer at the Town of Monument, 645 Beacon Lite Road, Monument, Colorado, 80132. ---PAGE BREAK--- BASIC FINANCIAL STATEMENTS ---PAGE BREAK--- BUSINESS GOVERNMENTAL TYPE ACTIVITIES ACTIVITIES 2017 2016 ASSETS Cash and Investments 2,167,422 $ 208,023 $ 2,375,445 $ 1,077,445 $ Restricted Cash and Investments 97,275 675,000 772,275 1,061,466 Receivables Property Taxes 893,834 - 893,834 793,650 Sales and Other 1,207,154 - 1,207,154 1,144,921 Accounts 3,051 108,548 111,599 120,090 Grants - - - 11,247 Prepaid Tap Fees - Water Line Loop - 471,110 471,110 471,110 Prepaid Expenses 6,618 - 6,618 7,325 Capital Assets, Not Depreciated 1,767,122 3,598,626 5,365,748 5,365,748 Capital Assets, Depreciated Net of Accumulated Depreciation 9,307,276 4,052,951 13,360,227 13,366,323 TOTAL ASSETS 15,449,752 9,114,258 24,564,010 23,419,325 LIABILITIES Accounts Payable 597,102 48,283 645,385 637,281 Accrued Salaries and Benefits 71,843 - 71,843 70,737 Accrued Interest 3,305 2,205 5,510 5,510 Developer Escrow and Deposits 43,367 14,500 57,867 157,331 Noncurrent Liabilities Due within One Year 96,935 66,578 163,513 445,038 Due in More Than One Year 486,848 146,070 632,918 543,871 TOTAL LIABILITIES 1,299,400 277,636 1,577,036 1,859,768 DEFERRED INFLOW OF RESOURCES Deferred Property Tax Revenue 893,834 - 893,834 793,650 NET POSITION Net Investment in Capital Assets 10,778,718 7,472,513 18,251,231 18,017,422 Restricted for Emergencies 209,000 - 209,000 182,500 Restricted for Parks and Recreation 3,108 - 3,108 19,223 Restricted for Future Water Storage - 675,000 675,000 675,000 Restricted for Water Line Loop - 471,110 471,110 471,110 Restricted for Debt Service - - - 16,809 Unrestricted, Unreserved 2,265,692 217,999 2,483,691 1,383,843 TOTAL NET POSITION 13,256,518 $ 8,836,622 $ 22,093,140 $ 20,765,907 $ TOTAL TOWN OF MONUMENT, COLORADO STATEMENT OF NET POSITION December 31, 2017 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 2,319,744 $ 304,789 $ 40,509 $ - $ Public Safety 1,704,140 96,837 - - Public Works 2,126,882 180,999 43,166 - Parks and Recreation 78,052 - - 41,706 Interest on Long-Term Debt 15,073 - - - Total Governmental Activities 6,243,891 582,625 83,675 41,706 Business-Type Activities Water 1,385,486 1,453,585 - 344,050 Interest on Long-Term Debt 8,864 - - - Total Business-Type Activities 1,394,350 1,453,585 - 344,050 Total Primary Government 7,638,241 $ 2,036,210 $ 83,675 $ 385,756 $ 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, 2017 The accompanying notes are an integral part of the financial statements. 2 ---PAGE BREAK--- GOVERNMENTAL BUSINESS-TYPE ACTIVITIES ACTIVITIES 2017 2016 (1,974,446) $ - $ (1,974,446) $ (2,301,239) $ (1,607,303) - (1,607,303) (1,439,527) (1,902,717) - (1,902,717) (1,638,574) (36,346) - (36,346) (28,356) (15,073) - (15,073) (22,890) (5,535,885) - (5,535,885) (5,430,586) - 412,149 412,149 617,771 - (8,864) (8,864) (16,629) - 403,285 403,285 601,142 (5,535,885) 403,285 (5,132,600) (4,829,444) 4,342,291 177,354 4,519,645 4,061,351 900,282 - 900,282 844,132 382,667 - 382,667 358,620 371,213 - 371,213 315,765 233,467 - 233,467 223,636 17,987 10,422 28,409 16,988 5,924 18,226 24,150 44,996 69,645 (69,645) - - 6,323,476 136,357 6,459,833 5,865,488 787,591 539,642 1,327,233 1,036,044 12,468,927 8,296,980 20,765,907 19,729,863 13,256,518 $ 8,836,622 $ 22,093,140 $ 20,765,907 $ TOTALS NET (EXPENSE) REVENUE AND CHANGE IN NET POSITION ---PAGE BREAK--- OTHER GENERAL 2A WATER GOVERNMENTAL FUND ASD FUND FUNDS 2017 2016 ASSETS Cash and Investments 175,622 $ 1,748,560 $ 209,886 $ 2,134,068 $ 1,077,445 $ Restricted Cash and Investments 94,167 - 3,108 97,275 38,606 Property Taxes Receivable 893,834 - - 893,834 793,650 Other Taxes Receivable 1,207,154 - - 1,207,154 1,144,921 Accounts Receivable 3,051 - - 3,051 1,904 Grants Receivable - - - - 11,247 Due From Other Funds - 33,354 - 33,354 423,235 Prepaid Expense 6,618 - - 6,618 7,325 TOTAL ASSETS 2,380,446 1,781,914 212,994 4,375,354 3,498,333 LIABILITIES, DEFERRED INFLOWS AND FUND EQUITY LIABILITIES Accounts Payable 597,102 - - 597,102 562,084 Accrued Salaries and Benefits 71,843 - - 71,843 62,382 Developer Escrow 43,367 - - 43,367 145,731 TOTAL LIABILITIES 712,312 - - 712,312 770,197 DEFERRED INFLOW OF RESOURCES Deferred Property Tax Revenue 893,834 - - 893,834 793,650 FUND EQUITY Fund Balance Nonspendable 6,618 - - 6,618 7,325 Restricted for Emergencies 209,000 - - 209,000 182,500 Restricted for Parks and Recreation - - 3,108 3,108 19,223 Committed - 1,781,914 209,886 1,991,800 1,335,585 Unassigned 558,682 - - 558,682 389,853 TOTAL FUND EQUITY 774,300 1,781,914 212,994 2,769,208 1,934,486 TOTAL LIABILITIES, DEFERRED INFLOWS, AND FUND EQUITY 2,380,446 $ 1,781,914 $ 212,994 $ 4,375,354 $ 3,498,333 $ TOTALS TOWN OF MONUMENT, COLORADO BALANCE SHEET GOVERNMENTAL FUNDS December 31, 2017 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 2,769,208 $ Capital assets used in governmental activities are not financial resources and therefore, are not reported in the funds. 11,074,398 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). (587,088) Net position of governmental activities 13,256,518 $ TOWN OF MONUMENT, COLORADO RECONCILIATION OF THE BALANCE SHEET - GOVERNMENTAL FUNDS TO THE STATEMENT OF NET POSITION December 31, 2017 The accompanying notes are an integral part of the financial statements. 4 ---PAGE BREAK--- OTHER GENERAL 2A WATER GOVERNMENTAL FUND ASD FUND FUNDS 2017 2016 REVENUES Taxes 4,885,455 $ 943,555 $ 167,790 $ 5,996,800 $ 5,404,992 $ Licenses and Permits 55,730 - 63,479 119,209 105,423 Charges for Services 185,580 - 180,999 366,579 288,261 Intergovernmental 316,795 - 41,706 358,501 598,179 Court 96,837 - - 96,837 106,215 Interest 7,693 7,334 2,960 17,987 11,154 Miscellaneous 3,924 - 2,000 5,924 19,522 TOTAL REVENUES 5,552,014 950,889 458,934 6,961,837 6,533,746 EXPENDITURES General Government 2,075,304 - 88,407 2,163,711 2,425,456 Public Safety 1,626,142 - - 1,626,142 1,501,786 Public Works 1,273,689 155,205 - 1,428,894 1,267,288 Parks and Recreation - - 40,433 40,433 41,745 Debt Service Principal 193,554 - 159,000 352,554 657,926 Interest 6,283 - 8,790 15,073 37,264 Capital Outlay 487,823 - 317,888 805,711 1,899,357 TOTAL EXPENDITURES 5,662,795 155,205 614,518 6,432,518 7,830,822 EXCESS OF REVENUES OVER (UNDER) EXPENDITURES (110,781) 795,684 (155,584) 529,319 (1,297,076) OTHER FINANCING SOURCES (USES) Proceeds from Issuance of Debt 235,758 - - 235,758 193,515 Transfers In 69,645 - - 69,645 61,222 Transfers Out - - - - (18,500) TOTAL OTHER FINANCING SOURCES (USES) 305,403 - - 305,403 236,237 NET CHANGE IN FUND BALANCES 194,622 795,684 (155,584) 834,722 (1,060,839) FUND BALANCES, Beginning 579,678 986,230 368,578 1,934,486 2,995,325 FUND BALANCES, Ending 774,300 $ 1,781,914 $ 212,994 $ 2,769,208 $ 1,934,486 $ TOTALS TOWN OF MONUMENT, COLORADO STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - GOVERNMENTAL FUNDS Year Ended December 31, 2017 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 834,722 $ Governmental funds report capital outlays as expenditures. However, in the statement of activities, the cost of those assets is allocated over their estimated useful lives and reported as depreciation expense. This is the amount by which capital outlay of $805,711 exceeded depreciation of ($893,726) in the current period. (88,015) Capital lease proceeds are reported as financing sources in the governmental funds and increase fund balance. In the government-wide statements, however, issuing debt increases long-term liabilities in the statement of net position and does not affect the statement of activities. (235,758) Repayment of long-term debt principal is an expenditure in the governmental funds, but the repayment reduces long-term liabilities in the statement of net position. These include bond and loan payments of $159,000, payments of capital leases of $193,554, and change in accrued compensated absences of ($75,912). 276,642 Change in Net Position of Governmental Activities 787,591 $ Year Ended December 31, 2017 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--- 2017 2016 ASSETS Current Assets Cash and Investments 208,023 $ - $ Restricted Cash and Investments 675,000 1,022,860 Accounts Receivable 108,548 118,186 Prepaid Tap Fees - Water Line Loop 471,110 471,110 Total Current Assets 1,462,681 1,612,156 Noncurrent Assets Capital Assets, net of accumulated depreciation 7,651,577 7,569,658 TOTAL ASSETS 9,114,258 9,181,814 LIABILITIES Current Liabilities Accounts Payable 48,283 75,197 Accrued Expenses - 8,355 Due to Other Funds - 423,235 Accrued Interest Payable 2,205 2,205 Accrued Compensated Absences, Current Portion 3,358 5,448 Leases Payable, Current Portion 63,220 76,398 Bonds and Loan Payable, Current Portion - 51,280 Total Current Liabilities 117,066 642,118 Noncurrent Liabilities Deposits 14,500 11,600 Accrued Compensated Absences 30,226 49,029 Leases Payable 115,844 182,087 Total Noncurrent Liabilities 160,570 242,716 TOTAL LIABILITIES 277,636 884,834 NET POSITION Net Investment in Capital Assets 7,472,513 7,259,893 Restricted for Debt Service - 16,809 Restricted for Future Water Storage 675,000 675,000 Restricted for Water Line Loop 471,110 471,110 Unreserved 217,999 (125,832) TOTAL NET POSITION 8,836,622 $ 8,296,980 $ TOWN OF MONUMENT, COLORADO STATEMENT OF NET POSITION PROPRIETARY FUND TYPE December 31, 2017 The accompanying notes are an integral part of the financial statements. 7 ---PAGE BREAK--- 2017 2016 OPERATING REVENUES Charges for Services 1,453,585 $ 1,305,262 $ Miscellaneous Income 18,226 25,474 TOTAL OPERATING REVENUES 1,471,811 1,330,736 OPERATING EXPENSES Operations and Maintenance 961,316 925,268 Administrative and General 67,754 82,191 Depreciation 356,416 361,142 TOTAL OPERATING EXPENSES 1,385,486 1,368,601 OPERATING INCOME (LOSS) 86,325 (37,865) NON-OPERATING REVENUES (EXPENSES) Sales Taxes 177,354 176,553 Interest Income 10,422 5,834 Interest Expenses (8,864) (16,629) TOTAL NON-OPERATING REVENUES (EXPENSES) 178,912 165,758 INCOME BEFORE CAPITAL CONTRIBUTIONS 265,237 127,893 CAPITAL CONTRIBUTIONS AND TRANSFERS OUT Capital Contributions Tap Fees 344,050 681,110 Other Funds - 64,587 Transfers Out (69,645) (42,722) TOTAL CAPITAL CONTRIBUTIONS AND TRANSFERS OUT 274,405 702,975 NET INCOME 539,642 830,868 NET POSITION, Beginning 8,296,980 7,466,112 NET POSITION, Ending 8,836,622 $ 8,296,980 $ TOWN OF MONUMENT, COLORADO STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION PROPRIETARY FUND TYPE Year Ended December 31, 2017 The accompanying notes are an integral part of the financial statements. 8 ---PAGE BREAK--- 2017 2016 CASH FLOWS FROM OPERATING ACTIVITIES Cash Received from Customers 1,463,223 $ 1,244,880 $ Cash Received from Others 18,226 25,474 Cash Paid to Suppliers (1,068,423) (666,956) Cash Paid to Employees (406,690) (393,650) Net Cash Provided by Operating Activities 6,336 209,748 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Sales Tax Received 177,354 176,553 Expenses paid by Other Funds (33,354) - Transfers to Other Funds (69,645) (42,722) Net Cash Provided by Noncapital Financing Activities 74,355 133,831 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Purchase of Capital Assets (438,335) (471,825) Lease Proceeds - 321,484 Bond, Loan and Lease Principal Payments (130,701) (273,661) Interest Payments (8,864) (19,431) Capital Contributions Tap Fees 344,050 210,000 Deposits Received from Customers 2,900 (13,959) Net Cash Provided (Used) by Capital and Related Financing Activities (230,950) (247,392) CASH FLOWS FROM INVESTING ACTIVITIES Interest Received 10,422 5,834 Net Increase (Decrease) in Cash and Cash Equivalents (139,837) 102,021 CASH AND CASH EQUIVALENTS, Beginning 1,022,860 920,839 CASH AND CASH EQUIVALENTS, Ending 883,023 $ 1,022,860 $ RECONCILIATION OF OPERATING LOSS TO NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES Operating Income (Loss) 86,325 $ (37,865) $ Adjustments to Reconcile Operating Income (Loss) to Net Cash Provided (Used) by Operating Activities Depreciation and Amortization 356,416 361,142 Changes in Assets and Liabilities Accounts Receivable 9,638 (60,382) Due to Other Funds (389,881) (81,606) Accounts Payable (26,914) 21,472 Accrued Expenses (8,355) (5,054) Accrued Compensated Absences (20,893) 12,041 Total Adjustments (79,989) 247,613 Net Cash Provided by Operating Activities 6,336 $ 209,748 $ NON-CASH ACTIVITIES Prepaid Tap Fees - Water Line Loop - $ 471,110 $ Capital Contributions - Other Funds - 64,587 Total Non-Cash Activities - $ 535,697 $ TOWN OF MONUMENT, COLORADO STATEMENT OF CASH FLOWS PROPRIETARY FUND TYPE Year Ended December 31, 2017 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, 2017 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, 2017 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, 2017 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, 2017 13 NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Compensated Absences Employees of the Town are allowed to accumulate unused vacation time. Upon termination of employment from the Town, an employee will be compensated for all accrued vacation time up to 384 hours at their current pay rate and unused sick time up to 360 hours at 50% of their current rate of pay. These compensated absences are recognized as current salary costs when earned in the proprietary fund types and when due in the governmental fund types. A liability has been recorded in the government-wide financial statements for the accrued compensated absences. Long-Term Obligations In the government-wide financial statements, and proprietary fund type in the fund financial statements, long-term debt and other long-term obligations are reported as liabilities in the applicable governmental activities, business-type activities, or proprietary fund type statement of net assets. Bond premiums and discounts are deferred and amortized over the life of the bonds using the straight-line method. In the fund financial statements, governmental fund types recognize bond premiums and discounts, as well as bond issuance costs, during the current period. The face amount of debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures. Net Position The government-wide and business-type fund financial statements utilize a net position presentation. Net position is categorized as net investment in capital assets, restricted, and unrestricted. Net investment in capital assets is intended to reflect the portion of net position which is associated with non-liquid, capital assets less outstanding capital asset related debt. The net related debt is the debt less the outstanding liquid assets and any associated unamortized cost. Restricted net position is liquid assets, which have third party limitations on their use. Unrestricted net position represents assets that do not have any third party limitations on their use. ---PAGE BREAK--- TOWN OF MONUMENT, COLORADO NOTES TO FINANCIAL STATEMENTS December 31, 2017 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, 2017.  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, 2017 15 NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Property Taxes (Continued) Since property tax revenues are collected in arrears during the succeeding year, a receivable and corresponding deferred revenue are recorded at December 31. As the tax is collected in the succeeding year, the deferred revenue is recognized as revenue and the receivable is reduced. NOTE 2: STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY Budgets and Budgetary Accounting The Town follows these procedures in establishing the budgetary data reflected in the financial statements:  In October, the Town staff submits to the Town Council a proposed operating budget for the fiscal year commencing the following January 1. The operating budget includes proposed expenditures and the means of financing them.  Public hearings are conducted to obtain taxpayer comments.  Prior to December 15, the budget is legally enacted through passage of an ordinance.  The Town Administration is authorized to transfer budgeted amounts between departments within any fund. However, any revisions that alter the total expenditures of any fund must be approved by the Town Council.  Budgets are legally adopted for all funds of the Town. Budgets for the General and Special Revenue Funds are adopted on a basis consistent with generally accepted accounting principles (GAAP). The Budgetary comparison presented for the Enterprise Fund is presented on a non-GAAP budgetary basis. Capital outlay and debt payments are budgeted as expenditures and depreciation is not budgeted.  Budgeted amounts in the financial statements are as originally adopted or as amended by the Town Council. All appropriations lapse at year end. Colorado governments may not exceed budgeted appropriations at the fund level. Legal Compliance For the year ended December 31, 2017, the Debt Service Fund actual expenditures exceeded budgeted expenditures by $13,225. This may be a violation of State statute. ---PAGE BREAK--- TOWN OF MONUMENT, COLORADO NOTES TO FINANCIAL STATEMENTS December 31, 2017 16 NOTE 3: DEPOSITS AND INVESTMENTS A summary of deposits and investments as of December 31, 2017 follows: Petty Cash $ 1,711 Cash Held with Third Parties 94,167 Cash Deposits 673,218 Investments 2,378,624 Total $ 3,147,720 The above amounts are classified in the statement of net position as follows: Cash and Investments $ 1,013,652 Restricted Cash and Investments 2,134,068 Total $ 3,147,720 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, 2017, the Town had deposits with financial institutions with a carrying amount of $673,218. The bank balances with the financial institutions totaling $695,214, of which $455,708 were covered by the FDIC and $137,983 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, 2017 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, 2017, the Town had the following investments: Maturity 2017 Colorado Liquid Government Weighted Average Asset Trust (COLOTRUST) under 60 days $ 2,378,293 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, 2017 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 $ 675,000 Future Lease Purchase – General Fund 94,167 Parks and Recreation – Conservation Trust Fund 3,108 Total $ 772,275 Future Water Storage – The Town has restricted $675,000 of the Water Fund’s cash balance for future water storage in relation to an intergovernmental agreement. The Town also restricted net position of $675,000 for future water storage in relation to this agreement. Future Lease Purchase – The Town has restricted cash of $94,167 in the General Fund which is held by third party for the future acquisition of capital assets under capital leases. Parks and Recreation – The Town has restricted cash of $3,108 in the Conservation Trust Fund for future parks and recreation expenditures. NOTE 4: INTERFUND TRANSFERS Interfund transfers for the year ended December 31, 2017, consisted of the following: Transfers In Transfers Out Amount General Water $ 69,645 During the year ended December 31, 2017, the Water Fund transferred to the General Fund an amount for administrative costs. ---PAGE BREAK--- TOWN OF MONUMENT, COLORADO NOTES TO FINANCIAL STATEMENTS December 31, 2017 19 NOTE 5: CAPITAL ASSETS Capital assets activity for the year ended December 31, 2017 is summarized below: Depreciation expense was charged to functions/programs of the Town as follows: Governmental Activities General Government $ 143,620 Public Safety 45,492 Public Works 668,406 Parks and Recreation 36,208 Total $ 893,726 Balances Balances 12/31/2016 Additions Deletions 12/31/2017 Governmental Activities: Capital Assets, not being depreciated Land 1,767,122 $ - $ - $ 1,767,122 $ Capital Assets, being depreciated Buildings 3,873,197 41,000 - 3,914,197 Infrastructure 8,367,154 - - 8,367,154 Water Rights 135,324 - - 135,324 Furniture and Equipment 721,273 45,584 - 766,857 Vehicles and Street Equipment 1,703,522 148,971 - 1,852,493 Park Improvements 617,967 25,350 - 643,317 Street Improvements 4,573,279 544,805 - 5,118,084 Total Capital Assets, being depreciated 19,991,716 805,710 - 20,797,426 Less accumulated depreciation Buildings (1,211,838) (125,245) - (1,337,083) Infrastructure (4,647,154) (278,905) - (4,926,059) Water Rights (21,044) (2,706) - (23,750) Furniture and Equipment (452,847) (71,945) - (524,792) Vehicles and Street Equipment (1,333,886) (90,019) - (1,423,905) Park Improvements (316,983) (35,108) - (352,091) Street Improvements (2,612,673) (289,798) - (2,902,471) Total accumulated depreciation (10,596,425) (893,726) - (11,490,151) Total Capital Assets, being depreciated, net 9,395,291 (88,016) - 9,307,275 Governmental Activities Capital Assets, net 11,162,413 $ (88,016) $ - $ 11,074,397 $ ---PAGE BREAK--- TOWN OF MONUMENT, COLORADO NOTES TO FINANCIAL STATEMENTS December 31, 2017 20 NOTE 5: CAPITAL ASSETS (Continued) Balances Balances 12/31/2016 Additions Deletions 12/31/2017 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 - - 118,897 Iron Treatment Plant 287,854 - - 287,854 Water Treatment Plant 1,199,322 - - 1,199,322 Other Equipment 1,012,122 210,475 - 1,222,597 Slabaugh Well 191,390 - - 191,390 Wells/Treatment 7,579,779 227,860 - 7,807,639 Transmission & Distribution 2,127,426 - - 2,127,426 Vehicles 384,292 - - 384,292 Total Capital Assets, being depreciated 13,446,474 438,335 - 13,884,809 Less accumulated depreciation Water Rights (57,500) (2,500) - (60,000) Alluvium Wells (390,915) (3,684) - (394,599) Public Works Building (38,951) (4,303) - (43,254) Iron Treatment Plant (273,460) (9,595) - (283,055) Water Treatment Plant (426,948) (39,977) - (466,925) Other Equipment (694,012) (62,068) - (756,080) Slabaugh Well (93,785) (3,828) - (97,613) Wells/Treatment (5,594,580) (148,554) - (5,743,134) Transmission & Distribution (1,633,056) (61,196) - (1,694,252) Vehicles (272,235) (20,711) - (292,946) Total accumulated depreciation (9,475,442) (356,416) - (9,831,858) Total Capital Assets, being depreciated, net 3,971,032 81,919 - 4,052,951 Business-type Activities Capital Assets, net 7,569,658 $ 81,919 $ - $ 7,651,577 $ ---PAGE BREAK--- TOWN OF MONUMENT, COLORADO NOTES TO FINANCIAL STATEMENTS December 31, 2017 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, 2017. Accrued Compensated Absences are being paid from resources generated by the General Fund. 1979 GO Water Bonds – These bonds were issued to extend and improve the waterworks system. Principal and interest payments were due annually on December 1. The remaining principal was paid off during 2017. Interest accrued at a rate of 5.00% 1997 Water Loan (Colorado Water Resources and Power Development Authority) – This Loan was obtained to advance refund General Obligation Water Bonds from 1987 for water system improvements. Principal and interest payments were due semi- annually on April 1 and October 1 through 2017. The remaining principal was paid off during 2017. Interest accrued at rates ranging from 4.10% to 5.60%. Capital Leases The Town has entered into several capital lease agreements to purchase equipment which will be paid from revenues of the General Fund. These leases require interest to be paid ranging from 2.12% to 9.16%. These leases mature from 2020 – 2021. Following is a schedule of the future minimum lease payments required under the outstanding capital lease obligations at December 31, 2017: Balance Balance Due Within 12/31/2016 Additions Deletions 12/31/2017 One Year Govenmental Activities 1979 GO Water Bonds 19,000 $ - $ 19,000 $ - $ - $ 1997 Loan 140,000 - 140,000 - - Capital Leases 221,464 235,758 193,554 263,668 64,923 Accrued Compensated Absences 244,203 75,912 - 320,115 32,012 624,667 $ 311,670 $ 352,554 $ 583,783 $ 96,935 $ ---PAGE BREAK--- TOWN OF MONUMENT, COLORADO NOTES TO FINANCIAL STATEMENTS December 31, 2017 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, 2017. 2002 Colorado Water Conservation Board Loan – This loan was obtained to finance the Monument Dam project. Principal and interest payments were due annually on August 1, through 2033. Interest accrued at 5.50%. This loan matured in August of 2017 and was paid off in full. 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, 2017. Year Ended December 31 2018 114,089 $ 2019 57,222 2020 57,223 2021 49,689 Total Minimum Lease Payments 278,223 Less: Interest (14,555) Present Value of Future Minimum Lease Payments 263,668 $ Balance Balance Due Within 12/31/2016 Additions Deletions 12/31/2017 One Year Business-type Activities 2002 CWCB Loan 51,280 $ - $ 51,280 $ - $ - $ Capital Leases 258,485 ‐ 79,421 179,064 63,220 Accrued Compensated Absences 54,477 ‐ 20,893 33,584 3,358 364,242 $ ‐ $ 151,594 $ 212,648 $ 66,578 $ ---PAGE BREAK--- TOWN OF MONUMENT, COLORADO NOTES TO FINANCIAL STATEMENTS December 31, 2017 23 NOTE 6: LONG-TERM DEBT (Continued) 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, 2017 totaled $13,250,333 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, 2017, the Town contributions were $127,205, 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). Year Ended December 31 2018 74,854 $ 2019 57,601 2020 57,602 Total Minimum Lease Payments 190,057 Less: Interest (10,993) Present Value of Future Minimum Lease Payments 179,064 $ ---PAGE BREAK--- TOWN OF MONUMENT, COLORADO NOTES TO FINANCIAL STATEMENTS December 31, 2017 24 NOTE 8: PUBLIC ENTITY RISK POOL (Continued) 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 Monument Lake and Dam During 1999, the Colorado Legislature enacted a law, which would grant ownership of the dam and, water storage rights to the town upon the completion of the reconstruction of the dam and acceptance by the Town. The Town is awaiting the deed from the Governor’s office. Construction was completed in September 2003; however, there are ongoing improvements being made prior to the transfer of ownership. Tabor Amendment Colorado voters passed an amendment to the State Constitution, Article X, Section 20, which has several limitations, including revenue raising, spending abilities, and other specific requirements of state and local government. In November 1996, voters within the Town approved the collection, retention and expenditure of the all revenues generated by the Town in 1996 and subsequent years, notwithstanding the provisions of the Amendment. The Town believes it is in substantial compliance with the Amendment. The Town has established an emergency reserve, representing 3% of qualifying expenditures, as required by the Amendment. At December 31, 2017, the emergency reserve of $209,000 was recorded in the General Fund. ---PAGE BREAK--- REQUIRED SUPPLEMENTARY INFORMATION ---PAGE BREAK--- ORIGINAL VARIANCE AND FINAL Positive 2016 BUDGET ACTUAL (Negative) ACTUAL REVENUES Taxes 4,593,964 $ 4,885,455 $ 291,491 $ 4,770,084 $ Licenses and Permits 32,000 55,730 23,730 43,994 Charges for Services 118,050 185,580 67,530 122,210 Intergovernmental 667,520 316,795 (350,725) 550,420 Court 120,500 96,837 (23,663) 106,215 Interest 1,500 7,693 6,193 2,741 Miscellaneous - 3,924 3,924 5,572 TOTAL REVENUES 5,533,534 5,552,014 18,480 5,601,236 EXPENDITURES Current General Government 2,203,968 2,075,304 128,664 2,424,835 Public Safety 1,559,789 1,626,142 (66,353) 1,501,786 Public Works 2,105,028 1,273,689 831,339 1,114,132 Capital Outlay 261,758 487,823 (226,065) 755,344 Debt Service Principal 192,083 193,554 (1,471) 517,426 Interest 8,986 6,283 2,703 20,639 TOTAL EXPENDITURES 6,331,612 5,662,795 668,817 6,334,162 EXCESS OF REVENUES OVER (UNDER) EXPENDITURES (798,078) (110,781) 687,297 (732,926) OTHER FINANCING SOURCES (USES) Proceeds from Issuance of Debt 236,000 235,758 (242) 193,515 Transfers In 65,249 69,645 4,396 42,722 Transfers (Out) - - - (18,500) TOTAL OTHER FINANCING SOURCES (USES) 301,249 305,403 4,154 217,737 NET CHANGE IN FUND BALANCE (496,829) 194,622 691,451 (515,189) FUND BALANCE, Beginning 647,713 579,678 (68,035) 1,094,867 FUND BALANCE, Ending 150,884 $ 774,300 $ 623,416 $ 579,678 $ TOWN OF MONUMENT, COLORADO GENERAL FUND BUDGETARY COMPARISON SCHEDULE Year Ended December 31, 2017 (With Comparative Actual Totals for the Year Ended December 31, 2016) See the accompanying Independent Auditor's Report. 25 ---PAGE BREAK--- ORIGINAL VARIANCE AND FINAL Positive 2016 BUDGET ACTUAL (Negative) ACTUAL REVENUES Sales Tax 858,342 $ 943,555 $ 85,213 $ 477,783 $ Interest 9,000 7,334 (1,666) 7,591 TOTAL REVENUES 867,342 950,889 83,547 485,374 EXPENDITURES Public Works 348,500 155,205 193,295 153,156 Capital Outlay 1,463,580 - 1,463,580 988,164 TOTAL EXPENDITURES 1,812,080 155,205 1,656,875 1,141,320 NET CHANGE IN FUND BALANCE (944,738) 795,684 (1,573,328) (655,946) FUND BALANCE, Beginning 944,738 986,230 41,492 1,642,176 FUND BALANCE, Ending - $ 1,781,914 $ 1,781,914 $ 986,230 $ 2017 (With Comparative Actual Totals for the Year Ended December 31, 2016) TOWN OF MONUMENT, COLORADO 2A WATER ASD FUND BUDGETARY COMPARISON SCHEDULE Year Ended December 31, 2017 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 25,451 $ - $ 176,295 $ 8,140 $ Restricted Cash and Investments - 3,108 - - TOTAL ASSETS 25,451 $ 3,108 $ 176,295 $ 8,140 $ FUND EQUITY Restricted for Parks and Recreation - $ 3,108 $ - $ - $ Committed 25,451 - 176,295 8,140 TOTAL FUND EQUITY 25,451 $ 3,108 $ 176,295 $ 8,140 $ TOWN OF MONUMENT, COLORADO NONMAJOR GOVERNMENTAL FUNDS COMBINING BALANCE SHEET December 31, 2017 SPECIAL REVENUE FUNDS See the accompanying Independent Auditor's Report. 27 ---PAGE BREAK--- DEBT SERVICE FUND 2017 2016 - $ 209,886 $ 349,355 $ - 3,108 19,223 - $ 212,994 $ 368,578 $ - $ 3,108 $ 19,223 $ - 209,886 349,355 - $ 212,994 $ 368,578 $ TOTALS ---PAGE BREAK--- STORM COMMUNITY CONSERVATION TRAFFIC DRAINAGE DEVELOPMENT TRUST IMPACT FEE IMPACT FEE FUND FUND FUND FUND REVENUES Licenses and Permits 63,479 $ - $ - $ - $ Intergovernmental - 41,706 - - Charges for Services - - 122,898 58,101 Sales Tax - - - - Interest 451 26 2,253 230 Miscellaneous 2,000 - - - TOTAL REVENUES 65,930 41,732 125,151 58,331 EXPENDITURES General Government 88,407 - - - Parks and Recreation - 40,433 - - Capital Outlay - 17,414 234,082 66,392 Debt Service Principal - - - - Interest and Fiscal Charges - - - - TOTAL EXPENDITURES 88,407 57,847 234,082 66,392 EXCESS OF REVENUES OVER (UNDER) EXPENDITURES (22,477) (16,115) (108,931) (8,061) OTHER FINANCING SOURCES (USES) Transfers In - - - - CHANGE IN FUND BALANCES (22,477) (16,115) (108,931) (8,061) FUND BALANCES, Beginning 47,928 19,223 285,226 16,201 FUND BALANCES, Ending 25,451 $ 3,108 $ 176,295 $ 8,140 $ Year Ended December 31, 2017 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--- DEBT SERVICE FUND 2017 2016 - $ 63,479 $ 61,429 $ - 41,706 47,759 - 180,999 166,051 167,790 167,790 157,125 - 2,960 822 - 2,000 13,950 167,790 458,934 447,136 - 88,407 621 - 40,433 41,745 - 317,888 155,849 159,000 159,000 140,500 8,790 8,790 16,625 167,790 614,518 355,340 - (155,584) 91,796 - - 18,500 - (155,584) 110,296 - 368,578 258,282 - $ 212,994 $ 368,578 $ TOTALS ---PAGE BREAK--- ORIGINAL VARIANCE AND FINAL Positive 2016 BUDGET ACTUAL (Negative) ACTUAL REVENUES Business Licenses 60,000 $ 63,479 $ 3,479 $ 61,429 $ Interest 20 451 431 48 Miscellaneous 12,000 2,000 (10,000) 13,950 TOTAL REVENUES 72,020 65,930 (6,090) 75,427 EXPENDITURES General Government 83,000 88,407 (5,407) - Capital Outlay 32,324 - 32,324 75,219 TOTAL EXPENDITURES 115,324 88,407 26,917 75,219 EXCESS OF REVENUES OVER (UNDER) EXPENDITURES (43,304) (22,477) 20,827 208 OTHER FINANCING SOURCES Transfers In - - - 18,500 NET CHANGE IN FUND BALANCE (43,304) (22,477) 20,827 18,708 FUND BALANCE, Beginning 43,304 47,928 4,624 29,220 FUND BALANCE, Ending - $ 25,451 $ 25,451 $ 47,928 $ (With Comparative Actual Totals for the Year Ended December 31, 2016) 2017 TOWN OF MONUMENT, COLORADO COMMUNITY DEVELOPMENT FUND BUDGETARY COMPARISON SCHEDULE Year Ended December 31, 2017 See the accompanying Independent Auditor's Report. 29 ---PAGE BREAK--- ORIGINAL VARIANCE AND FINAL Positive 2016 BUDGET ACTUAL (Negative) ACTUAL REVENUES Lottery Revenues 50,000 $ 41,706 $ (8,294) $ 47,759 $ Interest 75 26 (49) 39 TOTAL REVENUES 50,075 41,732 (8,343) 47,798 EXPENDITURES Parks and Recreation 65,414 57,847 7,567 41,745 NET CHANGE IN FUND BALANCE (15,339) (16,115) (776) 6,053 FUND BALANCE, Beginning 15,339 19,223 3,884 13,170 FUND BALANCE, Ending - $ 3,108 $ 3,108 $ 19,223 $ 2017 (With Comparative Actual Totals for the Year Ended December 31, 2016) TOWN OF MONUMENT, COLORADO CONSERVATION TRUST FUND BUDGETARY COMPARISON SCHEDULE Year Ended December 31, 2017 See the accompanying Independent Auditor's Report. 30 ---PAGE BREAK--- ORIGINAL VARIANCE AND FINAL Positive 2016 BUDGET ACTUAL (Negative) ACTUAL REVENUES Traffic Impact Fees 145,190 $ 122,898 $ (22,292) $ 102,368 $ Interest 2,000 2,253 253 482 TOTAL REVENUES 147,190 125,151 (22,039) 102,850 EXPENDITURES Capital Outlay 446,297 234,082 212,215 20,630 NET CHANGE IN FUND BALANCE (299,107) (108,931) 190,176 82,220 FUND BALANCE, Beginning 299,107 285,226 (13,881) 203,006 FUND BALANCE, Ending - $ 176,295 $ 176,295 $ 285,226 $ (With Comparative Actual Totals for the Year Ended December 31, 2016) 2017 TOWN OF MONUMENT, COLORADO TRAFFIC IMPACT FEE FUND BUDGETARY COMPARISON SCHEDULE Year Ended December 31, 2017 See the accompanying Independent Auditor's Report. 31 ---PAGE BREAK--- ORIGINAL VARIANCE AND FINAL Positive 2016 BUDGET ACTUAL (Negative) ACTUAL REVENUES Storm Drainage Impact Fees 190,000 $ 58,101 $ (131,899) $ 63,683 $ Interest 150 230 80 253 TOTAL REVENUES 190,150 58,331 (131,819) 63,936 EXPENDITURES General Government 295,949 - 295,949 621 Capital Outlay - 66,392 (66,392) 60,000 TOTAL EXPENDITURES 295,949 66,392 229,557 60,621 NET CHANGE IN FUND BALANCE (105,799) (8,061) 97,738 3,315 FUND BALANCE, Beginning 105,799 16,201 (89,598) 12,886 FUND BALANCE, Ending - $ 8,140 $ 8,140 $ 16,201 $ 2017 TOWN OF MONUMENT, COLORADO STORM DRAINAGE IMPACT FEE BUDGETARY COMPARISON SCHEDULE Year Ended December 31, 2017 (With Comparative Actual Totals for the Year Ended December 31, 2016) See the accompanying Independent Auditor's Report. 32 ---PAGE BREAK--- ORIGINAL VARIANCE AND FINAL Positive 2016 BUDGET ACTUAL (Negative) ACTUAL REVENUES Sales Tax 154,565 $ 167,790 $ 13,225 $ 157,125 $ TOTAL REVENUES 154,565 167,790 13,225 157,125 EXPENDITURES Debt Service Principal 145,500 159,000 (13,500) 140,500 Interest 9,065 8,790 275 16,625 TOTAL EXPENDITURES 154,565 167,790 (13,225) 157,125 NET CHANGE IN FUND BALANCE - - - - FUND BALANCE, Beginning - - - - FUND BALANCE, Ending - $ - $ - $ - $ 2017 TOWN OF MONUMENT, COLORADO DEBT SERVICE FUND BUDGETARY COMPARISON SCHEDULE Year Ended December 31, 2017 (With Comparative Actual Totals for the Year Ended December 31, 2016) See the accompanying Independent Auditor's Report. 33 ---PAGE BREAK--- ORIGINAL VARIANCE AND FINAL Positive 2016 BUDGET ACTUAL (Negative) ACTUAL REVENUES Charges for Services 1,729,237 $ 1,453,585 $ (275,652) $ 1,305,262 $ Sales Tax 240,760 177,354 (63,406) 176,553 Tap Fees 324,000 344,050 20,050 681,110 Lease Proceeds 226,000 - (226,000) 321,484 Investment Income 7,500 10,422 2,922 5,834 Other Revenues 20,000 18,226 (1,774) 25,474 TOTAL REVENUES 2,547,497 2,003,637 (543,860) 2,515,717 EXPENDITURES Operations and Maintenance 1,038,355 961,316 77,039 925,268 Administration and General 104,448 67,754 36,694 82,191 Capital Outlay 1,002,000 438,335 563,665 471,825 Debt Service Principal 173,090 130,701 42,389 273,661 Interest 9,676 8,864 812 16,629 Transfers Out 69,645 69,645 - 42,722 TOTAL EXPENDITURES 2,397,214 1,676,615 720,599 1,812,296 NET INCOME, Budget Basis 150,283 $ 327,022 176,739 $ 703,421 GAAP BASIS ADJUSTMENTS Capital Contribution - Other Funds - 64,587 Capital Outlay 438,335 471,825 Depreciation (356,416) (361,142) Proceeds from Capital Leases (321,484) Principal Paid on Long-Term Debt 130,701 273,661 NET INCOME, GAAP Basis 539,642 830,868 NET POSITION, Beginning 8,296,980 7,466,112 NET POSITION, Ending 8,836,622 $ 8,296,980 $ 2017 TOWN OF MONUMENT, COLORADO WATER FUND BUDGETARY COMPARISON SCHEDULE Year Ended December 31, 2017 (With Comparative Actual Totals for the Year Ended December 31, 2016) See the accompanying Independent Auditor's Report. 34 ---PAGE BREAK--- OTHER INFORMATION ---PAGE BREAK--- See the accompanying Independent Auditor's Report 35 ---PAGE BREAK--- See the accompanying Independent Auditor's Report 36