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TOWN OF MONUMENT, COLORADO BASIC FINANCIAL STATEMENTS December 31, 2014 ---PAGE BREAK--- INTRODUCTORY SECTION ---PAGE BREAK--- TOWN OF MONUMENT, COLORADO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2014 BOARD OF TRUSTEES Mayor Rafael Dominguez Mayor Pro Tem Jeffrey Kaiser Trustee Jeffrey Bornstein Trustee Kelly Elliot Trustee Jeff Smith Trustee John Howe Trustee Becki Tooley ADMINISTRATIVE STAFF Pamela Smith – Town Manager Pamela Smith – Acting Town Treasurer Sirochman – Town Clerk Jacob Shirk – Chief of Police Thomas Tharnish – Public Works Director Mike Pesicka – Planning Director ---PAGE BREAK--- TABLE OF CONTENTS PAGE INTRODUCTORY SECTION Title Page Table of Contents FINANCIAL SECTION Independent Auditors’ Report a - b Management’s Discussion and Analysis i - x Basic Financial Statements Government – Wide Financial Statements Statements of Net Position 1 Statements of Activities 2 Fund Financial Statements Balance Sheets – Governmental Funds 3 Statement of Revenues, Expenditures and Changes in Fund Balances – Governmental Funds 4 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities 5 Statement of Net Position – Proprietary Fund Type 6 Statement of Revenues, Expenses and Changes in Fund Net Position – Proprietary Fund Type 7 Statement of Cash Flows – Proprietary Fund Type 8 Notes to Financial Statements 9 – 25 ---PAGE BREAK--- TABLE OF CONTENTS (Continued) PAGE FINANCIAL SECTION (Continued) Required Supplementary Information General Fund – Budgetary Comparison Statement 26 2A Water ASD Fund – Budgetary Comparison Statement 27 Combining and Individual Fund Schedules Combining Balance Sheet – Nonmajor Governmental Funds 28 Combining Statement of Revenues, Expenditures and Changes In Fund Balances – Nonmajor Governmental Funds 29 Community Development Fund – Budgetary Comparison Schedule 30 Conservation Trust Fund – Budgetary Comparison Schedule 31 Traffic Impact Fee Fund – Budgetary Comparison Schedule 32 Storm Drainage Impact Fee Fund – Budgetary Comparison Schedule 33 Debt Service Fund – Budgetary Comparison Schedule 34 Water Fund – Budgetary Comparison Schedule 35 STATE COMPLIANCE Local Highway Finance Report 36 - 37 ---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, 2014, 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, 2014, 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, 2013, by which a report dated June 25, 2014 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 26- 27 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. 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 combining and individual fund schedules, and the state compliance listed in the table of contents are presented for purposes of additional analysis and are not a required part of the 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 financial statements. The information has been subjected to the auditing procedures applied in the audit of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the combining and individual fund schedules and the state compliance are fairly stated in all material respects in relation to the financial statements as a whole. Aurora, Colorado July 21, 2014 ---PAGE BREAK--- i 2014 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, 2014. 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 2014 by $19,449,638 (net position). Of this amount, $2,120,160 (unrestricted net position) may be used for the Town’s obligations to citizens and creditors. At December 31, 2014, the Town of Monument’s governmental funds reported combined ending fund balances of $2,824,651 an increase of $113,436 in comparison with the prior year. $664,580 of this total amount is available for spending at the Town’s discretion (unreserved fund balance). The unreserved fund balance for the General Fund was $664,580, or 23.5% of the total General Fund expenditures. This is a decrease of 25.4% from the prior year. Sales and use taxes revenue, the Town’s largest source of revenue was $3,554,420 for 2014 as compared to $3,394,535 for the prior year, an increase of 4.7%. The key factor for this was an increase in commercial and residential development and a more robust economy in 2014. 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 of 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 of 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 9 through 25 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 26 through 27 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 28 through 35. Financial Analysis of the Town as a Whole As noted earlier, net assets may serve over time as a useful indicator of a government’s financial position. This is the 11th year the Town has reported using the GASB 34 model. Comparisons of 2013 to 2014 follow. In the case of the Town of Monument, assets exceeded liabilities by $17,972,556 at the end of 2013 and at the end of 2014 by $19,449,638 an increase in Total Net Position of $1,477,082 or 8.2%. Assets 2014 2013 2014 2013 2014 2013 Governmental Activities Governmental Activities Business- type Activities Business- type Activities Total Total Current and other assets $4,247,110 $3,980,851 $ 527,539 $ 6,951 $ 4,774,649 $ 3,987,802 Capital assets, net 10,988,333 10,842,371 7,328,453 7,380,046 18,316,786 18,222,417 Total assets 15,235,443 14,823,222 7,855,992 7,386,997 23,091,435 22,210,219 Liabilities Long term liabilities 985,774 1,610,226 295,984 493,654 1,281,758 2,103,880 Other liabilities 1,357,764 1,174,363 307,175 263,657 1,664,939 1,438,020 Total liabilities 2,343,538 2,784,589 603,159 757,311 2,946,697 3,541,900 Deferred Inflow of Resources Deferred Property Tax Revenue 695,100 695,763 - - 695,100 695,763 Net Position Net investment in capital assets 9,564,008 8,861,672 6,858,489 6,712,193 16,422,497 15,573,865 Restricted 215,172 182,000 691,809 - 906,981 182,000 Unrestricted 2,417,625 2,299,198 (297,465) (82,507) 2,120,160 2,216,691 Total net position $12,196,805 $11,342,870 $7,252,833 $6,629,686 $19,449,638 $17,972,556 ---PAGE BREAK--- iv The largest portion of the Town of Monument’s net position (88%) 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, $2,120,160, 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 $1,477,082 during 2014. Governmental Activities reported an $853,935 increase, with sales tax revenue and property taxes being the largest contributors. CHANGES IN NET POSITION 2014 Governmental Type Activities 2013 Governmental Type Activities 2014 Business Type Activities 2013 Business Type Activities 2014 Total 2013 Total Revenues: Program revenues: Charges for Services $406,142 $295,430 $898,902 $800,240 $1,305,044 $1,095,670 Operating Grants & Contributions 405,271 152,110 - - 405,271 152,110 Capital Grants & Contributions 246,358 44,903 810,000 108,000 1,056,358 152,903 General revenues: Property taxes 767,251 751,396 - - 767,251 751,396 Sales taxes 3,447,413 3,302,992 107,007 91,543 3,554,420 3,394,535 Franchise taxes 317,895 315,714 - - 317,895 315,714 Other Taxes 209,479 197,476 - - 209,479 197,476 Investment income 3,381 4,227 813 284 4,194 4,511 Other Misc 6,500 - 1,776 13,853 8,276 13,853 Transfers (88,241) - 88,241 - - - Total revenues 5,721,449 5,064,248 1,906,739 1,013,920 7,628,188 6,078,168 Program expenses: General government 1,776,664 1,726,414 - - 1,776,664 1,726,414 Public safety 1,320,450 1,371,229 - - 1,320,450 1,371,229 Public works, Parks & Recreation 1,699,069 1,413,693 - - 1,699,069 1,413,693 Interest on long-term debt 71,331 127,246 34,471 17,867 105,802 145,113 Water - - 1,249,121 1,115,252 1,249,121 1,115,252 Total expenses 4,867,514 4,638,582 1,283,592 1,133,119 6,151,106 5,771,701 Increase (decrease) in net assets 853,935 425,666 623,147 (119,199) 1,477,082 306,467 Net assets 12/31/13 11,342,870 10,917,204 6,629,686 6,748,885 17,972,556 17,666,089 Net Assets 12/31/14 $12,196,805 $11,342,870 $7,252,833 $6,629,686 $19,449,638 $17,972,556 ---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 62%. 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 12%. The remaining interest income along with grants & contributions accounts for 13% of total revenues. Series1, Property & Specific Ownership Taxes, 767,251 , 13% Series1, Sales, Use & Other Taxes, 3,656,892 , 62% Series1, Franchise fees, 317,895 , 6% Series1, Investment income, 3,381 , 0% Series1, Other miscellaneous, (81,741), Series1, Charges for services, 406,142 , 7% Series1, Operating grants and contributions, 405,271 , 7% Series1, Capital grants and contriubtions, 246,358 , 4% Revenues by Source - Governmental Activities - 2014 Actual ---PAGE BREAK--- vii Business-type Activities Charges for services account for 47% of the Town’s revenue for business-type activities. Sales taxes account for 6% and the remaining interest income, grants & contributions and miscellaneous revenue accounts for 47% of total revenues. Financial Analysis of the Town’s Funds The Town of Monument uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. Significant balances and transactions for General Fund revenue include sales tax related to the development at Monument Marketplace, commercial and residential development, planning fees and increased franchise fees. Total revenues for the General Fund were $4,826,760, which was $53,650 over budget. Significant balances and transactions for General Fund expenditures include $98,933 on land and buildings; $63,011 on furniture and equipment; $93,520 on vehicles and street equipment; $158,029 on park improvements and $506,549 on street improvements. The CDOT grant match for the sidewalk project was $101,855 for total capital outlay of $1,021,897. The Water Department spent $28,733 on well repairs; $2,393 on the Town’s master water plan; $59,788 on equipment; $55,395 on transmission & distribution lines and $14,390 on construction for total capital outlay of $160,699. The 2A Water ASD Fund spent $88,241 for capital projects, which were contributed to the water enterprise fund. The Town Manager, in conjunction with the Department Heads, continued to analyze the Town’s salary ranges to keep up with competitive rates, for non-exempt employees, for related size towns and job descriptions. We were able to give up to 4% Performance Based raises and had no layoffs in 2014. We were also able to restructure the Police pay for performance model to assist in retaining staff. Water Fund revenue was more than Budget by $606,829 due to a water storage fee escrow. Customer usage decreased $6,198. Tap fee revenue in 2014 was $135,000 that was $25,000 less than budget. 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 $898,902 and Sales Tax Revenue was $107,007. Water Fund actual budgetary expenses were approximately $65,858 below budget in 2014 due to decreased operations and maintenance funds being expended and deferring capital expenses. ---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 $5,567,194. Actual expenditures for 2014 were $5,032,190 an amount favorable to budgeted expenditures of $535,004. This positive variance was the result, in part, of salary savings on replacing the Treasurer in 2014; 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 Public safety - Law Enforcement/Court Public works Capital Outlay Debt Services, General government, 1,661,013 , 33% General government Public safety - Law Enforcement/Court Public works Capital Outlay Debt Services, Public safety - Law Enforcement/Court, 1,271,779 , 26% General government Public safety - Law Enforcement/Court Public works Capital Outlay Debt Services, Public works, 816,002 , 16% General government Public safety - Law Enforcement/Court Public works Capital Outlay Debt Services, Capital Outlay, 750,770 , 15% General government Public safety - Law Enforcement/Court Public works Capital Outlay Debt Services, Debt Services, 505,126 , 10% General Fund Expenditures - 2014 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, 2014 totaled $18,316,786 (net of accumulated depreciation). Water fund capital assets represent 40% of this total. The capital projects for the Town’s governmental activities consisted of expenditures to include $98,933 on land and buildings; $63,011 on furniture and equipment; $93,520 on vehicles and street equipment; $158,029 on park improvements and $506,549 on street improvements. The CDOT grant match for the sidewalk project was $101,855 for total capital outlay of $1,021,897. The Water Department spent $28,733 on well improvements and major repairs; $2,393 on the Town’s master water plan; $59,788 on equipment; $55,395 on transmission & distribution lines and $14,390 on construction for total capital outlay of $160,699. The 2A Water ASD Fund spent $88,241 for capital projects contributed to the water enterprise fund. Note 4 of the financial statements provide a detailed summary of the Town’s capital assets. Long-term Debt The Town of Monument’s total debt decreased by $774,289 during 2014. The Town’s long-term debt related to governmental activities decreased in 2014. Payments of $576,400 were made on bonds, loans and capital lease obligations during the year. The Town did not enter into new lease agreements in 2014. The Town’s long-term debt related to business-type activities decreased in 2014. Payments of $197,889 were made on bonds, loans and capital lease obligations. The Town did receive one lease payment in 2014 in the amount of $14,015 for Capital equipment. Note 5 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 2014 was 5.1% down 2.1% from the 2013 average. This compares to the national average of 5.5% and state average of 4.3% for 2014. Total land use permits issued in 2014 were 158, with 139 residential and 19 commercial. This is up 18 permits from 2013, with the increase coming in new single family home and new commercial permits. 2015 is expected to be higher than 2014 numbers, due to several new residential developments beginning in the Town. Total retail sales tax is budgeted at $5,471,795 for 2015, which compares to $5,258,517 in 2014, an increase of 4.06%. Property tax revenue is expected to increase $3,400 in 2015. This increase reflects a slight upswing in development over the previous year. The mill levy for 2015 is 6.289 mills, unchanged since 2008. The 2015 budget includes capital projects for general asphalt repairs and repair to Old Denver Highway. There is money budgeted for a new pavilion for Lavallette Park, of which the Lions Club is a contributing sponsor. Also included in the capital project for Public Works are repairs to the existing public works site; a hot box for asphalt repairs; a new tire machine; street sweeper maintenance and a snow push box for the loader. The Planning Department will continue with sidewalk improvements. The Water Enterprise Fund has capital for moving the bulk water fill station; lake improvements; implementation of lawn irrigation return flows and well maintenance. The ancillary funds have available cash for designated projects as they are assigned. The Town is also continuing work on a storm drainage master plan, a parks master plan and a new Comprehensive Plan. The Town continues the process for compliance with the Federal National Pollutant Discharge Elimination System (NPDES) Clean Water Act and is pursuing renewable 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 2014 2013 ASSETS Cash and Investments 2,100,332 $ - $ 2,100,332 $ 2,010,825 $ Restricted Cash and Investments 40,550 901,852 942,402 198,184 Receivables Property Taxes 695,100 - 695,100 695,763 Sales and Other 977,714 - 977,714 964,298 Accounts 1,755 53,274 55,029 49,884 Grants 3,162 - 3,162 68,272 Interfund Amounts 427,587 (427,587) - - Prepaid Expenses 910 - 910 576 Capital Assets, Not Depreciated 802,290 3,569,766 4,372,056 4,275,273 Capital Assets, Depreciated Net of Accumulated Depreciation 10,186,043 3,758,687 13,944,730 13,947,144 TOTAL ASSETS 15,235,443 7,855,992 23,091,435 22,210,219 LIABILITIES Accounts Payable 525,642 56,164 581,806 421,829 Accrued Salaries and Benefits 86,010 13,409 99,419 95,158 Accrued Interest 11,616 12,558 24,174 36,001 Developer Escrow and Deposits 115,707 13,359 129,066 110,789 Noncurrent Liabilities Due within One Year 618,789 211,685 830,474 774,243 Due in More Than One Year 985,774 295,984 1,281,758 2,103,880 TOTAL LIABILITIES 2,343,538 603,159 2,946,697 3,541,900 DEFERRED INFLOW OF RESOURCES Deferred Property Tax Revenue 695,100 - 695,100 695,763 NET POSITION Net Investment in Capital Assets 9,564,008 6,858,489 16,422,497 15,573,865 Restricted for Emergencies 203,000 - 203,000 182,000 Restricted for Parks and Recreation 12,149 - 12,149 9,631 Restricted for Future Water Storage - 675,000 675,000 - Restricted for Debt Service 23 16,809 16,832 16,809 Unrestricted, Unreserved 2,417,625 (297,465) 2,120,160 2,190,251 TOTAL NET POSITION 12,196,805 $ 7,252,833 $ 19,449,638 $ 17,972,556 $ TOTAL TOWN OF MONUMENT, COLORADO STATEMENT OF NET POSITION December 31, 2014 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 1,776,664 $ 226,297 $ 34,965 $ - $ Public Safety 1,320,450 53,441 - - Public Works 1,636,471 126,404 370,306 - Parks and Recreation 62,598 - - 246,358 Interest on Long-Term Debt 71,331 - - - Total Governmental Activities 4,867,514 406,142 405,271 246,358 Business-Type Activities Water 1,249,121 898,902 - 810,000 Interest on Long-Term Debt 34,471 - - - Total Business-Type Activities 1,283,592 898,902 - 810,000 Total Primary Government 6,151,106 $ 1,305,044 $ 405,271 $ 1,056,358 $ GENERAL REVENUES Sales Taxes Property Taxes Franchise Taxes Other Taxes Interest Other TRANSFERS TOTAL GENERAL REVENUES CHANGE IN NET POSITION NET POSITION, Beginning NET POSITION, Ending Year Ended December 31, 2014 The accompanying notes are an integral part of the financial statements. 2 ---PAGE BREAK--- GOVERNMENTAL BUSINESS-TYPE ACTIVITIES ACTIVITIES 2014 2013 (1,515,402) $ - $ (1,515,402) $ (1,514,126) $ (1,267,009) - (1,267,009) (1,277,797) (1,139,761) - (1,139,761) (1,213,654) 183,760 - 183,760 (13,316) (71,331) - (71,331) (127,246) (3,809,743) - (3,809,743) (4,146,139) - 459,781 459,781 (207,012) - (34,471) (34,471) (17,867) - 425,310 425,310 (224,879) (3,809,743) 425,310 (3,384,433) (4,371,018) 3,447,413 107,007 3,554,420 3,394,535 767,251 - 767,251 751,396 317,895 - 317,895 315,714 209,479 - 209,479 197,476 3,381 813 4,194 4,511 6,500 1,776 8,276 13,853 (88,241) 88,241 - - 4,663,678 197,837 4,861,515 4,677,485 853,935 623,147 1,477,082 306,467 11,342,870 6,629,686 17,972,556 17,666,089 12,196,805 $ 7,252,833 $ 19,449,638 $ 17,972,556 $ TOTALS NET (EXPENSE) REVENUE AND CHANGE IN NET POSITION ---PAGE BREAK--- OTHER GENERAL 2A WATER GOVERNMENTAL FUND ASD FUND FUNDS 2014 2013 ASSETS Cash and Investments 143,261 $ 1,749,796 $ 207,275 $ 2,100,332 $ 2,010,825 $ Restricted Cash and Investments 40,550 - 40,550 40,550 Property Taxes Receivable 695,100 - - 695,100 695,763 Other Taxes Receivable 977,714 - - 977,714 964,298 Accounts Receivable 1,755 - - 1,755 890 Grants Receivable 3,162 3,162 68,272 Due From Other Funds 427,587 - - 427,587 199,677 Prepaid Expense 910 - - 910 576 TOTAL ASSETS 2,290,039 1,749,796 207,275 4,247,110 3,980,851 LIABILITIES, DEFERRED INFLOWS AND FUND EQUITY LIABILITIES Accounts Payable 525,642 - - 525,642 392,394 Accrued Salaries and Benefits 86,010 - - 86,010 81,749 Developer Escrow 115,707 - - 115,707 99,730 TOTAL LIABILITIES 727,359 - - 727,359 573,873 DEFERRED INFLOW OF RESOURCES Deferred Property Tax Revenue 695,100 - - 695,100 695,763 FUND EQUITY Fund Balance Restricted for Emergencies 203,000 - - 203,000 182,000 Restricted for Parks and Recreation - - 12,149 12,149 9,631 Restricted for Debt Service - - 23 23 - Committed - 1,749,796 195,103 1,944,899 1,628,574 Unassigned 664,580 - - 664,580 891,010 TOTAL FUND EQUITY 867,580 1,749,796 207,275 2,824,651 2,711,215 TOTAL LIABILITIES, DEFERRED INFLOWS, AND FUND EQUITY 2,290,039 $ 1,749,796 $ 207,275 $ Amounts reported for governmental activities in the statement of net position are different because: Capital assets used in governmental activities are not financial resources and therefore, are not reported in the funds. 10,988,333 10,842,371 Long-term liabilities and related items are not due and payable in the current period and are not reported in the funds. These include Bonds and Loan Payable of ($429,500), Capital Leases ($974,799), Accrued Compensated Absences ($200,264), and Accrued Interest Payable ($11,616). (1,616,179) (2,210,716) Net position of governmental activities 12,196,805 $ 11,342,870 $ TOTALS TOWN OF MONUMENT, COLORADO BALANCE SHEET GOVERNMENTAL FUNDS December 31, 2014 The accompanying notes are an integral part of the financial statements. 3 ---PAGE BREAK--- OTHER GENERAL 2A WATER GOVERNMENTAL FUND ASD FUND FUNDS 2014 2013 REVENUES Taxes 3,979,285 $ 399,881 $ 155,148 $ 4,534,314 $ 4,371,541 $ Licenses and Permits 25,516 - 51,734 77,250 71,205 Charges for Services 149,047 - 126,404 275,451 130,793 Intergovernmental 612,995 - 40,858 653,853 393,050 Court 53,441 - - 53,441 93,432 Interest 1,476 1,698 207 3,381 4,227 Miscellaneous 5,000 - 1,500 6,500 - TOTAL REVENUES 4,826,760 401,579 375,851 5,604,190 5,064,248 EXPENDITURES General Government 1,661,013 - 843 1,661,856 1,613,298 Public Safety 1,271,779 - - 1,271,779 1,338,707 Public Works 816,002 81,447 - 897,449 729,622 Parks and Recreation - - 38,352 38,352 38,651 Debt Service Principal 451,400 - 125,000 576,400 558,983 Interest 53,726 - 30,125 83,851 103,110 Capital Outlay 750,770 88,241 122,056 961,067 646,971 TOTAL EXPENDITURES 5,004,690 169,688 316,376 5,490,754 5,029,342 EXCESS OF REVENUES OVER (UNDER) EXPENDITURES (177,930) 231,891 59,475 113,436 34,906 OTHER FINANCING SOURCES (USES) Proceeds from Issuance of Debt - - - - 419,303 Transfers In - - 27,500 27,500 6,962 Transfers Out (27,500) - - (27,500) (6,962) TOTAL OTHER FINANCING SOURCES (USES) (27,500) - 27,500 - 419,303 NET CHANGE IN FUND BALANCES (205,430) 231,891 86,975 113,436 454,209 FUND BALANCES, Beginning 1,073,010 1,517,905 120,300 2,711,215 2,257,006 FUND BALANCES, Ending 867,580 $ 1,749,796 $ 207,275 $ 2,824,651 $ 2,711,215 $ TOTALS TOWN OF MONUMENT, COLORADO STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - GOVERNMENTAL FUNDS Year Ended December 31, 2014 The accompanying notes are an integral part of the financial statements. 4 ---PAGE BREAK--- Amounts Reported for Governmental Activities in the Statement of Activities are Different Because: Net Changes in Fund Balances - Total Governmental Funds 113,436 $ 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 $1,021,897, exceeded depreciation ($875,935) in the current period. 65,962 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 $125,000, payments of capital leases of $451,400, and change in accrued compensated absences of $5,617. 582,017 Some expenses reported in the statement of activities do not require the use of current financial resources and, therefore, are not reported as expenditures in the governmental funds. This includes the decrease in accrued interest payable. 12,520 Change in Net Position of Governmental Activities 773,935 $ Year Ended December 31, 2014 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. 5 ---PAGE BREAK--- 2014 2013 ASSETS Current Assets Restricted Cash and Investments 901,852 $ 157,634 $ Accounts Receivable 53,274 48,994 Total Current Assets 955,126 206,628 Noncurrent Assets Capital Assets, net of accumulated depreciation 7,328,453 7,380,046 TOTAL ASSETS 8,283,579 7,586,674 LIABILITIES Current Liabilities Accounts Payable 56,164 29,435 Accrued Expenses 13,409 13,409 Due to General Fund 427,587 199,677 Accrued Interest Payable 12,558 11,865 Accrued Compensated Absences, Current Portion 3,771 - Leases Payable, Current Portion 22,526 22,142 Bonds and Loan Payable, Current Portion 185,388 175,747 Total Current Liabilities 721,403 452,275 Noncurrent Liabilities Deposits 13,359 11,059 Accrued Compensated Absences 33,934 23,690 Leases Payable 15,515 38,041 Bonds and Loan Payable 246,535 431,923 Total Noncurrent Liabilities 309,343 504,713 TOTAL LIABILITIES 1,030,746 956,988 NET POSITION Net Investment in Capital Assets 6,858,489 6,712,193 Restricted for Debt Service 16,809 16,809 Restricted for Future Water Storage 675,000 - Unreserved (297,465) (99,316) TOTAL NET POSITION 7,252,833 $ 6,629,686 $ TOWN OF MONUMENT, COLORADO STATEMENT OF NET POSITION PROPRIETARY FUND TYPE December 31, 2014 The accompanying notes are an integral part of the financial statements. 6 ---PAGE BREAK--- 2014 2013 OPERATING REVENUES Charges for Services 898,902 $ 800,240 $ Miscellaneous Income 1,776 13,853 TOTAL OPERATING REVENUES 900,678 814,093 OPERATING EXPENSES Operations and Maintenance 821,815 284,203 Administrative and General 126,773 545,176 Depreciation 300,533 285,873 TOTAL OPERATING EXPENSES 1,249,121 1,115,252 OPERATING LOSS (348,443) (301,159) NON-OPERATING REVENUES (EXPENSES) Sales Taxes 107,007 91,543 Interest Income 813 284 Interest Expenses (34,471) (17,867) TOTAL NON-OPERATING REVENUES (EXPENSES) 73,349 73,960 LOSS BEFORE CAPITAL CONTRIBUTIONS (275,094) (227,199) Capital Contributions Tap Fees 135,000 108,000 Water Storage Fees 675,000 - Other Funds 88,241 - TOTAL CAPITAL CONTRIBUTIONS 898,241 108,000 NET INCOME (LOSS) 623,147 (119,199) NET POSITION, Beginning 6,629,686 6,748,885 NET POSITION, Ending 7,252,833 $ 6,629,686 $ TOWN OF MONUMENT, COLORADO STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION PROPRIETARY FUND TYPE Year Ended December 31, 2014 The accompanying notes are an integral part of the financial statements. 7 ---PAGE BREAK--- 2014 2013 CASH FLOWS FROM OPERATING ACTIVITIES Cash Received from Customers 894,622 $ 800,950 $ Cash Received from Others 1,776 13,853 Cash Paid to Suppliers (324,171) (338,451) Cash Paid to Employees (355,763) (342,027) Net Cash Provided by Operating Activities 216,464 134,325 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Sales Tax Received 107,007 91,543 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Purchase of Capital Assets (160,699) (200,509) Lease Proceeds - 82,773 Bond Payments (197,889) (189,299) Interest Payments (33,778) (42,440) Capital Contributions Tap Fees 135,000 108,000 Water Storage Fees 675,000 - Deposits Received from Customers 2,300 900 Net Cash Provided (Used) by Capital and Related Financing Activities 419,934 (240,575) CASH FLOWS FROM INVESTING ACTIVITIES Interest Received 813 284 Net Increase (Decrease) in Cash and Cash Equivalents 744,218 (14,423) CASH AND CASH EQUIVALENTS, Beginning 157,634 172,057 CASH AND CASH EQUIVALENTS, Ending 901,852 $ 157,634 $ RECONCILIATION OF OPERATING LOSS TO NET CASH PROVIDED BY OPERATING ACTIVITIES Operating Loss (348,443) $ (301,159) $ Adjustments to Reconcile Operating Loss to Net Cash Provided by Operating Activities Depreciation and Amortization 300,533 285,873 Changes in Assets and Liabilities Accounts Receivable (4,280) 710 Due to Other Funds 227,910 196,483 Accounts Payable 26,729 (18,444) Accrued Expenses - (29,725) Accrued Compensated Absences 14,015 587 Total Adjustments 564,907 435,484 Net Cash Provided by Operating Activities 216,464 $ 134,325 $ NON-CASH ACTIVITIES Capital Contributions - Other Funds 88,241 $ - $ TOWN OF MONUMENT, COLORADO STATEMENT OF CASH FLOWS PROPRIETARY FUND TYPE Year Ended December 31, 2014 Increase (Decrease) in Cash and Cash Equivalents The accompanying notes are an integral part of the financial statements. 8 ---PAGE BREAK--- TOWN OF MONUMENT, COLORADO NOTES TO FINANCIAL STATEMENTS December 31, 2014 9 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, 2014 10 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, 2014 11 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, 2014 12 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, 2014 13 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, 2014. 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, 2014 14 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, 2014 15 NOTE 3: DEPOSITS AND INVESTMENTS A summary of deposits and investments as of December 31, 2014 follows: Petty Cash $ 1,450 Cash Deposits 442,027 Investments 2,599,257 Total $ 3,042,734 The above amounts are classified in the statement of net position as follows: Cash and Investments $ 2,554,937 Restricted Cash and Investments 487,797 Total $ 3,042,734 Deposits Custodial Credit Risk – Deposits Custodial credit risk is the risk that in the event of a bank failure, the government’s deposits may not be returned to it. The Colorado Public Deposit Protection Act (PDPA) requires that all units of local government deposit cash in eligible public depositories. Eligibility is determined by state regulations. At December 31, 2014 State regulatory commissioners have indicated that all financial institutions holding deposits for the Town are eligible public depositories. Amounts on deposit in excess of Federal Deposit Insurance Corporation (FDIC) levels must be collateralized by eligible collateral as determined by the PDPA. The FDIC insures depositors’ accounts up to $250,000 for each financial institution. The PDPA allows the financial institution to create a single collateral pool for all public funds held. The pool is to be maintained by another institution, or held in trust for all the uninsured public deposits as a group. The market value of the collateral must be at least equal to 102% of the uninsured deposits. The Town has no policy regarding custodial credit risk for deposits. At December 31, 2014, the Town had deposits with financial institutions with a carrying amount of $442,027. The bank balances with the financial institutions were $507,546, of which $452,603 was covered by FDIC and $54,943 was collateralized with securities held by the financial institutions’ agents, but not in the Town’s name. ---PAGE BREAK--- TOWN OF MONUMENT, COLORADO NOTES TO FINANCIAL STATEMENTS December 31, 2014 16 NOTE 3: DEPOSITS AND INVESTMENTS (Continued) Investments Interest Rate Risk The Town does not have a formal investment policy that limits investment maturities as a means of managing its exposure to fair value losses arising from increasing interest rates. Credit Risk Colorado statutes specify in which instruments the units of local government may invest which includes: Obligations of the United States & certain U.S. government agency securities General obligation and revenue bonds of U.S. local government entities Commercial paper Local government investment pools Written repurchase agreements collateralized by certain authorized securities Certain money market funds Guaranteed investment contracts The above investments are authorized for all funds and fund types used by Colorado municipalities. The Town had invested $2,599,257 in the Colorado Government Liquid Asset Trust (COLOTRUST), an investment vehicle established for local government entities in Colorado to pool surplus funds and are registered with the State Securities Commissioner. The pool operates similarly to a money market fund and each share is equal in value to $1.00. Investments consist of U.S. Treasury and U.S. Agency securities and repurchase agreements collateralized by U.S. Treasury and U.S. Agency securities. A designated custodial bank provides safekeeping and depository services in connection with the direct investment and withdrawal functions. Substantially all securities owned are held by the Federal Reserve Bank in the account maintained for the custodial bank. The custodian’s internal records identify the investments owned by the entities. Colotrust is rated AAA by Standard and Poor’s. Restricted Cash Cash is restricted for the following purposes: Operating Reserve – Water Fund $ 210,043 Future Water Storage – Water Fund 675,000 Debt Service Reserve – Water Fund 16,809 Debt Service Reserve – Governmental Fund 40,550 Total $ 942,402 ---PAGE BREAK--- TOWN OF MONUMENT, COLORADO NOTES TO FINANCIAL STATEMENTS December 31, 2014 17 NOTE 3: DEPOSITS AND INVESTMENTS (Continued) Operating Reserve – The loan agreement with the Colorado Water Resources & Power Development Authority (CWR&PDA) requires that the Town maintain a three- month operating reserve. As of December 31, 2014, the Town’s water fund restricted cash of $210,043 for this operating reserve which did not meet the required three month operating reserve and may be a violation of the loan agreement. Future Water Storage – The Town has restricted $675,000 of the Water Fund’s cash balance for future water storage in relation to an intergovernmental agreement. The Town also restricted net position of $675,000 for future water storage in relation to this agreement. Debt Service Reserve – The 1997 Rural Economic and Community Development Loan was funded in full and converted to Water Revenue Bonds, Series 1995. This obligation requires that a reserve account be established, to be increased by $4,055 each year until the amount of the reserve is equal to $40,550. In accordance with this requirement, the Town has restricted General Fund cash in the amount of $40,550 at December 31, 2014. In addition, the CWCB loan requires 10% of annual payment as a reserve or $16,809. For this purpose, the Town has restricted Water Fund cash at December 31, 2014. ---PAGE BREAK--- TOWN OF MONUMENT, COLORADO NOTES TO FINANCIAL STATEMENTS December 31, 2014 18 NOTE 4: CAPITAL ASSETS Capital assets activity for the year ended December 31, 2014 is summarized below: Depreciation expense was charged to functions/programs of the Town as follows: Governmental Activities General Government $ 120,425 Public Safety 48,671 Public Works 682,593 Parks and Recreation 24,246 Total $ 875,935 Balances Balances 12/31/2013 Additions Deletions 12/31/2014 Governmental Activities: Capital Assets, not being depreciated Land 722,290 $ 80,000 $ - $ 802,290 $ Capital Assets, being depreciated Buildings 3,816,600 18,933 - 3,835,533 Infrastructure 8,367,154 - - 8,367,154 Water Rights 135,324 - - 135,324 Furniture and Equipment 469,699 63,011 - 532,710 Vehicles and Street Equipment 1,529,171 93,520 - 1,622,691 Park Improvements 411,839 158,029 - 569,868 Street Improvements 3,288,090 608,404 - 3,896,494 Total Capital Assets, being depreciated 18,017,877 941,897 - 18,959,774 Less accumulated depreciation Buildings (841,459) (122,623) - (964,082) Infrastructure (3,810,439) (278,905) - (4,089,344) Water Rights (12,926) (2,706) - (15,632) Furniture and Equipment (306,645) (31,090) - (337,735) Vehicles and Street Equipment (1,069,911) (104,564) - (1,174,475) Park Improvements (223,074) (29,246) - (252,320) Street Improvements (1,633,342) (306,801) - (1,940,143) Total accumulated depreciation (7,897,796) (875,935) - (8,773,731) Total Capital Assets, being depreciated, net 10,120,081 65,962 - 10,186,043 Governmental Activities Capital Assets, net 10,842,371 $ 145,962 $ - $ 10,988,333 $ ---PAGE BREAK--- TOWN OF MONUMENT, COLORADO NOTES TO FINANCIAL STATEMENTS December 31, 2014 19 NOTE 4: CAPITAL ASSETS (Continued) Balances Balances 12/31/2013 Additions Deletions 12/31/2014 Business-type Activities: Capital Assets, not being depreciated Water Master Plan 633,718 $ 2,393 $ - $ 636,111 $ Construction in Progress 2,919,265 14,390 - 2,933,655 Total Capital Assets, not being depreciated 3,552,983 16,783 - 3,569,766 Capital Assets, being depreciated Water Rights 125,000 - - 125,000 Alluvium Wells 420,392 - - 420,392 Public Works Building 113,800 - - 113,800 Iron Treatment Plant 287,854 - - 287,854 Water Treatment Plant 1,199,322 - - 1,199,322 Other Equipment 640,329 147,156 - 787,485 Slabaugh Well 191,390 - - 191,390 Wells/Treatment 7,504,952 28,733 - 7,533,685 Transmission & Distribution 1,546,559 55,395 - 1,601,954 Vehicles 278,158 873 - 279,031 Total Capital Assets, being depreciated 12,307,756 232,157 - 12,539,913 Less accumulated depreciation Water Rights (50,000) (2,500) - (52,500) Alluvium Wells (357,317) (15,241) - (372,558) Public Works Building (26,551) (3,793) - (30,344) Iron Treatment Plant (244,674) (9,595) - (254,269) Water Treatment Plant (307,017) (39,977) - (346,994) Other Equipment (563,354) (35,764) - (599,118) Slabaugh Well (82,301) (3,828) - (86,129) Wells/Treatment (5,153,708) (150,774) - (5,304,482) Transmission & Distribution (1,463,800) (27,852) - (1,491,652) Vehicles (231,971) (11,209) - (243,180) Total accumulated depreciation (8,480,693) (300,533) - (8,781,226) Total Capital Assets, being depreciated, net 3,827,063 (68,376) - 3,758,687 Business-type Activities Capital Assets, net 7,380,046 $ (51,593) $ - $ 7,328,453 $ ---PAGE BREAK--- TOWN OF MONUMENT, COLORADO NOTES TO FINANCIAL STATEMENTS December 31, 2014 20 NOTE 5: LONG-TERM DEBT Governmental Activities Following is a summary of long-term debt transactions for the governmental activities for the year ended December 31, 2014. Accrued Compensated Absences are being paid from resources generated by the General Fund. 1979 GO Water Bonds – These bonds were issued to extend and improve the waterworks system. Principal and interest payments are due annually on December 1 through 2019. Interest accrues at a rate of 5.00% 1997 Water Loan (Colorado Water Resources and Power Development Authority) – This Loan was obtained to advance refund General Obligation Water Bonds from 1987 for water system improvements. Principal and interest payments are due semi- annually on April 1 and October 1 through 2017. Interest accrues at rates ranging from 4.10% to 5.60%. Capital Leases The Town has entered into several capital lease agreements to purchase equipment which will be paid from revenues of the General Fund. These leases require interest to be paid ranging from 3.85% to 4.45%. These leases mature from 2008-2017. Balance Balance Due Within 12/31/2013 Additions Deletions 12/31/2014 One Year Govenmental Activities 1979 GO Water Bonds 34,500 $ - $ 5,000 $ 29,500 $ 5,000 $ 1997 Loan 520,000 - 120,000 400,000 125,000 Capital Leases 1,426,199 - 451,400 974,799 468,763 Accrued Compensated Absences 205,881 - 5,617 200,264 20,026 2,186,580 $ - $ 582,017 $ 1,604,563 $ 618,789 $ ---PAGE BREAK--- TOWN OF MONUMENT, COLORADO NOTES TO FINANCIAL STATEMENTS December 31, 2014 21 NOTE 5: LONG-TERM DEBT (Continued) Future Debt Service Requirements Annual debt service requirements for the outstanding bonds at December 31, 2014 are as follows: Following is a schedule of the future minimum lease payments required under the outstanding capital lease obligations at December 31, 2014. Business-Type Activities Following is a summary of long-term debt transactions for the business-type activities for the year ended December 31, 2014. Year Ended December 31 Principal Interest Total 2015 130,000 $ 23,875 $ 153,875 $ 2016 140,500 16,625 157,125 2017 145,500 8,790 154,290 2018 6,500 675 7,175 2019 7,000 350 7,350 429,500 $ 50,315 $ 479,815 $ Year Ended December 31 2015 505,191 $ 2016 466,648 2017 70,688 Total Minimum Lease Payments 1,042,527 Less: Interest (67,728) Present Value of Future Minimum Lease Payments 974,799 $ Balance Balance Due Within 12/31/2013 Additions Deletions 12/31/2014 One Year Business-type Activities 1995 GO Water Refunding 110,500 $ - $ 35,000 $ 75,500 $ 36,900 $ 2002 CWCB Loan 497,170 - 140,747 356,423 148,488 Capital Leases 60,183 ‐ 22,142 38,041 22,526 Accrued Compensated Absences 23,690 14,015 ‐ 37,705 3,771 691,543 $ 14,015 $ 197,889 $ 507,669 $ 211,685 $ ---PAGE BREAK--- TOWN OF MONUMENT, COLORADO NOTES TO FINANCIAL STATEMENTS December 31, 2014 22 NOTE 5: LONG-TERM DEBT (Continued) 1995 GO Water Refunding Bonds – These bonds were issued to refund the 1997 Rural Economic and Community Development Loan. Principal and interest payments are due semi-annually on June 1 and December 1, through 2016. Interest accrues at 5.125%. This obligation requires that a reserve account be established, to be increased by $4,055 each year until the amount of the reserve is equal to $40,550. In accordance with this requirement, the Town has restricted cash in the General Fund in the amount of $40,550 at December 31, 2014. 2002 Colorado Water Conservation Board Loan – This loan was obtained to finance the Monument Dam project. Principal and interest payments are due annually on August 1, through 2033. Interest accrues at 5.50%. This loan matures in August of 2017. 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 2.14% to 2.34%. These leases mature from 2016-2017. Future Debt Service Requirements Annual debt service requirements for the outstanding bonds at December 31, 2014 are as follows: Year Ended December 31 Principal Interest Total 2015 185,388 $ 23,006 $ 208,394 $ 2016 195,255 12,925 208,180 2017 51,280 2,820 54,100 431,923 $ 38,751 $ 470,674 $ ---PAGE BREAK--- TOWN OF MONUMENT, COLORADO NOTES TO FINANCIAL STATEMENTS December 31, 2014 23 NOTE 5: LONG-TERM DEBT (Continued) Following is a schedule of the future minimum lease payments required under the outstanding capital lease obligations at December 31, 2014. 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, 2014 totaled $15,128,333. NOTE 6: RETIREMENT COMMITMENTS Supplemental Death and Disability Plan Death and disability coverage is provided for members through the Statewide Death and Disability Plan, a multi-employer defined contribution plan, which is administered by the Colorado Fire and Police Pension Association, All full-time, paid police officers of the Town are members of the Plan. The State Legislature establishes benefit provisions of the Plan. The total contribution required is 2.6% of each participating employee’s covered salary. During the year ended December 31, 2014, the Town and employee contributions were $14,801, equal to the required contribution. Year Ended December 31 2015 23,293 $ 2016 8,596 2017 7,411 Total Minimum Lease Payments 39,300 Less: Interest (1,259) Present Value of Future Minimum Lease Payments 38,041 $ ---PAGE BREAK--- TOWN OF MONUMENT, COLORADO NOTES TO FINANCIAL STATEMENTS December 31, 2014 24 NOTE 6: RETIREMENT COMMITMENTS (Continued) 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, 2014, the Town contributions were $95,852, equal to the required contribution. The deferred compensation is not available to employees until termination, retirement, death or unforeseeable emergency. NOTE 7: 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, 2014 25 NOTE 8: 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, 2014, the emergency reserve of $203,000 was recorded in the General Fund. ---PAGE BREAK--- REQUIRED SUPPLEMENTARY INFORMATION ---PAGE BREAK--- VARIANCE ORIGINAL FINAL Positive 2013 BUDGET BUDGET ACTUAL (Negative) ACTUAL REVENUES Taxes 3,887,684 $ 3,906,548 $ 3,979,285 $ 72,737 $ 3,818,000 $ Licenses and Permits 21,338 25,350 25,516 166 23,960 Charges for Services 168,431 131,285 149,047 17,762 107,470 Intergovernmental 400,856 635,161 612,995 (22,166) 348,147 Court 56,477 69,000 53,441 (15,559) 93,432 Interest 751 766 1,476 710 2,512 Miscellaneous - 5,000 5,000 - - TOTAL REVENUES 4,535,537 4,773,110 4,826,760 53,650 4,393,521 EXPENDITURES Current General Government 1,650,565 1,748,296 1,661,013 87,283 1,529,168 Public Safety 1,341,652 1,359,962 1,271,779 88,183 1,338,707 Public Works 800,022 1,098,055 816,002 282,053 707,787 Capital Outlay 624,000 570,300 750,770 (180,470) 646,971 Debt Service Principal 451,355 451,049 451,400 (351) 439,483 Interest 53,728 53,712 53,726 (14) 65,600 Contingency 664,229 260,820 - 260,820 - TOTAL EXPENDITURES 5,585,551 5,542,194 5,004,690 537,504 4,727,716 EXCESS OF REVENUES OVER (UNDER) EXPENDITURES (1,050,014) (769,084) (177,930) 591,154 (334,195) OTHER FINANCING SOURCES (USES) Proceeds from Issuance of Debt - - - - 419,303 Transfers Out (25,000) (25,000) (27,500) (2,500) (6,962) TOTAL OTHER FINANCING SOURCES (USES) (25,000) (25,000) (27,500) (2,500) 412,341 NET CHANGE IN FUND BALANCE (1,075,014) (794,084) (205,430) 588,654 78,146 FUND BALANCE, Beginning 1,075,014 794,084 1,073,010 278,926 994,864 FUND BALANCE, Ending - $ - $ 867,580 $ 867,580 $ 1,073,010 $ 2014 TOWN OF MONUMENT, COLORADO GENERAL FUND BUDGETARY COMPARISON SCHEDULE Year Ended December 31, 2014 See the accompanying Independent Auditors' Report. 26 ---PAGE BREAK--- 2014 VARIANCE ORIGINAL FINAL Positive 2013 BUDGET BUDGET ACTUAL (Negative) ACTUAL REVENUES Sales Tax 389,630 $ 393,345 $ 399,881 $ 6,536 $ 396,531 $ Interest 2,000 1,800 1,698 (102) 1,550 TOTAL REVENUES 391,630 395,145 401,579 6,434 398,081 EXPENDITURES Public Works 40,000 140,225 81,447 58,778 21,835 Capital Outlay 1,860,533 1,772,825 88,241 1,772,292 - TOTAL EXPENDITURES 1,900,533 1,913,050 169,688 1,831,070 21,835 NET CHANGE IN FUND BALANCE (1,508,903) (1,517,905) 231,891 1,837,504 376,246 FUND BALANCE, Beginning 1,508,903 1,517,905 1,517,905 9,002 852,735 FUND BALANCE, Ending - $ - $ 1,749,796 $ 1,749,796 $ 1,228,981 $ TOWN OF MONUMENT, COLORADO 2A WATER ASD FUND BUDGETARY COMPARISON SCHEDULE Year Ended December 31, 2014 See the accompanying Independent Auditors' Report. 27 ---PAGE BREAK--- COMBINING AND INDIVIDUAL FUND SCHEDULES ---PAGE BREAK--- STORM COMMUNITY CONSERVATION TRAFFIC DRAINAGE DEVELOPMENT TRUST IMPACT FEE IMPACT FEE FUND FUND FUND FUND ASSETS Cash and Investments 20,115 $ 12,149 $ 174,938 $ 50 $ TOTAL ASSETS 20,115 $ 12,149 $ 174,938 $ 50 $ FUND EQUITY Restricted for Parks and Recreation - $ 12,149 $ - $ - $ Restricted for Debt Service - - - - Committed 20,115 - 174,938 50 TOTAL FUND EQUITY 20,115 $ 12,149 $ 174,938 $ 50 $ TOWN OF MONUMENT, COLORADO NONMAJOR GOVERNMENTAL FUNDS COMBINING BALANCE SHEET December 31, 2014 SPECIAL REVENUE FUNDS See the accompanying Independent Auditors' Report. 28 ---PAGE BREAK--- DEBT SERVICE FUND 2014 2013 23 $ 207,275 $ 120,300 $ 23 $ 207,275 $ 120,300 $ - $ 12,149 $ 9,631 $ 23 23 - - 195,103 110,669 23 $ 207,275 $ 120,300 $ TOTALS ---PAGE BREAK--- STORM COMMUNITY CONSERVATION TRAFFIC DRAINAGE DEVELOPMENT TRUST IMPACT FEE IMPACT FEE FUND FUND FUND FUND REVENUES Licenses and Permits 51,734 $ - $ - $ - $ Intergovernmental - 40,858 - - Charges for Services - - 104,798 21,606 Sales Tax - - - - Interest 7 12 149 39 Miscellaneous 1,500 - - - TOTAL REVENUES 53,241 40,870 104,947 21,645 EXPENDITURES General Government 843 - - - Parks and Recreation - 38,352 - - Capital Outlay 58,402 - 1,722 61,932 Debt Service Principal - - - - Interest and Fiscal Charges - - - - TOTAL EXPENDITURES 59,245 38,352 1,722 61,932 EXCESS OF REVENUES OVER (UNDER) EXPENDITURES (6,004) 2,518 103,225 (40,287) OTHER FINANCING SOURCES (USES) Transfers In 25,000 - - 2,500 CHANGE IN FUND BALANCES 18,996 2,518 103,225 (37,787) FUND BALANCES, Beginning 1,119 9,631 71,713 37,837 FUND BALANCES, Ending 20,115 $ 12,149 $ 174,938 $ 50 $ Year Ended December 31, 2014 SPECIAL REVENUE FUNDS TOWN OF MONUMENT, COLORADO NONMAJOR GOVERNMENTAL FUNDS STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES See the accompanying Independent Auditors' Report. 29 ---PAGE BREAK--- DEBT SERVICE FUND 2014 2013 - $ 51,734 $ 47,245 $ - 40,858 44,903 - 126,404 23,323 155,148 155,148 157,010 - 207 165 - 1,500 155,148 375,851 272,646 - 843 84,130 - 38,352 38,651 - 122,056 - 125,000 125,000 119,500 30,125 30,125 37,510 155,125 316,376 279,791 23 59,475 (7,145) - 27,500 6,962 23 86,975 (183) - 120,300 120,483 23 $ 207,275 $ 120,300 $ TOTALS ---PAGE BREAK--- VARIANCE ORIGINAL FINAL Positive 2013 BUDGET BUDGET ACTUAL (Negative) ACTUAL REVENUES Business Licenses 47,000 $ 50,000 $ 51,734 $ 1,734 $ 47,245 $ Interest 50 4 7 3 41 Miscellaneous - - 1,500 1,500 - TOTAL REVENUES 47,050 50,004 53,241 3,237 47,286 EXPENDITURES General Government - 3,047 843 2,204 84,130 Capital Outlay 79,191 73,077 58,402 14,675 - TOTAL EXPENDITURES 79,191 76,124 59,245 16,879 84,130 EXCESS OF REVENUES OVER (UNDER) EXPENDITURES (32,141) (26,120) (6,004) 20,116 (36,844) OTHER FINANCING SOURCES Transfers In 25,000 25,000 25,000 - 6,962 NET CHANGE IN FUND BALANCE (7,141) (1,120) 18,996 20,116 (29,882) FUND BALANCE, Beginning 7,141 1,120 1,119 31,001 FUND BALANCE, Ending - $ - $ 20,115 $ 20,115 $ 1,119 $ 2014 TOWN OF MONUMENT, COLORADO COMMUNITY DEVELOPMENT FUND BUDGETARY COMPARISON SCHEDULE Year Ended December 31, 2014 See the accompanying Independent Auditors' Report. 30 ---PAGE BREAK--- VARIANCE ORIGINAL FINAL Positive 2013 BUDGET BUDGET ACTUAL (Negative) ACTUAL REVENUES Lottery Revenues 48,000 $ 40,000 $ 40,858 $ 858 $ 44,903 $ Interest 6 12 12 - 6 TOTAL REVENUES 48,006 40,012 40,870 858 44,909 EXPENDITURES Parks and Recreation 57,425 49,643 38,352 11,291 38,651 NET CHANGE IN FUND BALANCE (9,419) (9,631) 2,518 12,149 6,258 FUND BALANCE, Beginning 9,419 9,631 9,631 - 3,373 FUND BALANCE, Ending - $ - $ 12,149 $ 12,149 $ 9,631 $ 2014 TOWN OF MONUMENT, COLORADO CONSERVATION TRUST FUND BUDGETARY COMPARISON SCHEDULE Year Ended December 31, 2014 See the accompanying Independent Auditors' Report. 31 ---PAGE BREAK--- VARIANCE ORIGINAL FINAL Positive 2013 BUDGET BUDGET ACTUAL (Negative) ACTUAL REVENUES Traffic Impact Fees 68,000 $ 83,000 $ 104,798 $ 21,798 $ 17,030 $ Interest 150 135 149 14 76 TOTAL REVENUES 68,150 83,135 104,947 21,812 17,106 EXPENDITURES Capital Outlay 140,832 154,848 1,722 153,126 - NET CHANGE IN FUND BALANCE (72,682) (71,713) 103,225 174,938 17,106 FUND BALANCE, Beginning 72,682 71,713 71,713 - 54,607 FUND BALANCE, Ending - $ - $ 174,938 $ 174,938 $ 71,713 $ 2014 TOWN OF MONUMENT, COLORADO TRAFFIC IMPACT FEE FUND BUDGETARY COMPARISON SCHEDULE Year Ended December 31, 2014 See the accompanying Independent Auditors' Report. 32 ---PAGE BREAK--- VARIANCE ORIGINAL FINAL Positive 2013 BUDGET BUDGET ACTUAL (Negative) ACTUAL REVENUES Storm Drainage Impact Fees 42,000 $ 34,000 $ 21,606 $ (12,394) $ 6,293 $ Interest 92 48 39 42 TOTAL REVENUES 42,092 34,048 21,645 (12,403) 6,335 EXPENDITURES Capital Outlay 73,594 71,885 61,932 9,953 - EXCESS OF REVENUES OVER (UNDER) EXPENDITURES (31,502) (37,837) (40,287) (2,450) 6,335 OTHER FINANCING SOURCES Transfers In - - 2,500 2,500 - NET CHANGE IN FUND BALANCE (31,502) (37,837) (37,787) 50 6,335 FUND BALANCE, Beginning 31,502 37,837 37,837 - 31,502 FUND BALANCE, Ending - $ - $ 50 $ 50 $ 37,837 $ 2014 TOWN OF MONUMENT, COLORADO STORM DRAINAGE IMPACT FEE BUDGETARY COMPARISON SCHEDULE Year Ended December 31, 2014 See the accompanying Independent Auditors' Report. 33 ---PAGE BREAK--- VARIANCE ORIGINAL FINAL Positive 2013 BUDGET BUDGET ACTUAL (Negative) ACTUAL REVENUES Sales Tax 157,285 $ 155,845 $ 155,148 $ (697) $ 157,010 $ TOTAL REVENUES 157,285 155,845 155,148 (697) 157,010 EXPENDITURES Debt Service Principal 120,000 127,500 125,000 2,500 119,500 Interest 37,285 28,345 30,125 (1,780) 37,510 TOTAL EXPENDITURES 157,285 155,845 155,125 720 157,010 NET CHANGE IN FUND BALANCE - - 23 23 - FUND BALANCE, Beginning - - - - - FUND BALANCE, Ending - $ - $ 23 $ 23 $ - $ 2014 TOWN OF MONUMENT, COLORADO DEBT SERVICE FUND BUDGETARY COMPARISON SCHEDULE Year Ended December 31, 2014 See the accompanying Independent Auditors' Report. 34 ---PAGE BREAK--- VARIANCE ORIGINAL FINAL Positive 2013 BUDGET BUDGET ACTUAL (Negative) ACTUAL REVENUES Charges for Services 1,054,379 $ 905,100 $ 898,902 $ (6,198) $ 800,240 $ Sales Tax 121,564 105,152 107,007 1,855 91,543 Tap Fees 197,000 160,000 135,000 (25,000) 108,000 Lease Proceeds - 34,000 - (34,000) 82,773 Investment Income 300 215 813 598 284 Water Storage Fee - - 675,000 675,000 - Other Revenues 3,000 7,202 1,776 (5,426) 13,853 TOTAL REVENUES 1,376,243 1,211,669 1,818,498 606,829 1,096,693 EXPENDITURES Operations and Maintenance 822,113 844,402 821,815 22,587 284,203 Administration and General 86,500 141,391 126,773 14,618 545,176 Capital Outlay 260,000 190,000 160,699 29,301 200,509 Debt Service Principal 197,889 197,889 197,889 - 189,299 Interest 33,823 33,823 34,471 (648) 17,867 TOTAL EXPENDITURES 1,400,325 1,407,505 1,341,647 65,858 1,237,054 NET INCOME, Budget Basis (24,082) $ (195,836) $ 476,851 672,687 $ (140,361) GAAP BASIS ADJUSTMENTS Capital Contribution - Other Funds 88,241 - Capital Outlay 160,699 200,509 Depreciation (300,533) (285,873) Proceeds from Issuance of Debt - (82,773) Principal Paid on Long-Term Debt 197,889 189,299 NET INCOME, GAAP Basis 623,147 (119,199) NET POSITION, Beginning 6,629,686 6,748,885 NET POSITION, Ending 7,252,833 $ 6,629,686 $ 2014 TOWN OF MONUMENT, COLORADO WATER FUND BUDGETARY COMPARISON SCHEDULE Year Ended December 31, 2014 See the accompanying Independent Auditors' Report. 35 ---PAGE BREAK--- STATE COMPLIANCE ---PAGE BREAK--- Form Approved The public report burden for this information collection is estimated to average 380 hours annually. OMB No. 2125-0032 City or County: YEAR ENDING : December 2014 This Information From The Records Of Town Of Monument Prepared By: Pamela Smith, Interim Town Treasurer Phone: [PHONE REDACTED] A. Local B. Local C. Receipts from D. Receipts from Motor-Fuel Motor-Vehicle State Highway- Federal Highway Taxes Taxes User Taxes Administration 1. Total receipts available 2. Minus amount used for collection expenses 3. Minus amount used for nonhighway purposes 4. Minus amount used for mass transit 5. Remainder used for highway purposes AMOUNT AMOUNT A. Receipts from local sources: A. Local highway disbursements: 1. Local highway-user taxes 1. Capital outlay (from page 2) 144,448 a. Motor Fuel (from Item I.A.5.) 2. Maintenance: (92,052) b. Motor Vehicle (from Item I.B.5.) 3. Road and street services: c. Total a. Traffic control operations 0 2. General fund appropriations 148,330 b. Snow and ice removal 31,207 3. Other local imposts (from page 2) 219,704 c. Other 0 4. Miscellaneous local receipts (from page 2) 30,636 d. Total through 31,207 5. Transfers from toll facilities 0 4. General administration & miscellaneous 60,845 6. Proceeds of sale of bonds and notes: 5. Highway law enforcement and safety 487,637 a. Bonds - Original Issues 0 6. Total (1 through 5) 632,085 b. Bonds - Refunding Issues 0 B. Debt service on local obligations: c. Notes 0 1. Bonds: d. Total + b. + 0 a. Interest 0 7. Total (1 through 6) 398,670 b. Redemption 0 B. Private Contributions 0 c. Total + 0 C. Receipts from State government 2. Notes: (from page 2) 233,416 a. Interest 0 D. Receipts from Federal Government b. Redemption 0 (from page 2) 0 c. Total + 0 E. Total receipts (A.7 + B + C + D) 632,085 3. Total (1.c + 2.c) 0 C. Payments to State for highways 0 D. Payments to toll facilities 0 E. Total disbursements (A.6 + B.3 + C + D) 632,085 Opening Debt Amount Issued Redemptions Closing Debt A. Bonds (Total) 0 0 0 0 1. Bonds (Refunding Portion) 0 0 B. Notes (Total) 0 0 0 A. Beginning Balance B. Total Receipts C. Total Disbursements D. Ending Balance E. Reconciliation 0 632,085 (632,085) 0 0 Notes and Comments: FORM FHWA-536 (Rev.1-05) PREVIOUS EDITIONS OBSOLETE (Next Page) 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 Town of Monument AND STREET PURPOSES LOCAL HIGHWAY FINANCE REPORT I. DISPOSITION OF HIGHWAY-USER REVENUES AVAILABLE FOR LOCAL GOVERNMENT EXPENDITURE ITEM III. DISBURSEMENTS FOR ROAD 1 See the accompanying Independent Auditors' Report. 36 ---PAGE BREAK--- STATE: Colorado YEAR ENDING (mm/yy): December 2014 AMOUNT AMOUNT A.3. Other local imposts: A.4. Miscellaneous local receipts: a. Property Taxes and Assesments 0 a. Interest on investments 0 b. Other local imposts: b. Traffic Fines and Penalities 30,636 1. Sales Taxes 0 c. Parking Garage Fees 0 2. Infrastructure & Impact Fees 126,403 d. Parking Meter Fees 0 3. Liens 0 e. Sale of Surplus Property 0 4. Licenses 1,875 f. Charges for Services 0 5. Specific Ownership orOther 91,426 g. Other Misc. Receipts 0 6. Total through 219,704 h. Other 0 c. Total + 219,704 i. Total through 30,636 (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 207,724 1. FHWA (from Item I.D.5.) 2. State general funds 2. Other Federal agencies: 3. Other State funds: a. Forest Service 0 a. State bond proceeds b. FEMA 0 b. Project Match c. HUD 0 c. Motor Vehicle Registration 25,692 d. Federal Transit Admin 0 d. Other - (Specify) 0 e. U.S. Corps of Engineers 0 e. Other (Specify) 0 f. Other Federal 0 f. Total through 25,692 g. Total through 0 4. Total + 2. + 3.f) 233,416 3. Total + 2.g) (Carry forward to page 1) ON NATIONAL OFF NATIONAL HIGHWAY HIGHWAY TOTAL SYSTEM SYSTEM A.1. Capital outlay: a. Right-Of-Way Costs 0 0 0 b. Engineering Costs 0 0 0 c. Construction: New Facilities 0 52,729 52,729 Capacity Improvements 0 0 0 System Preservation 0 91,719 91,719 System Enhancement & Operation 0 0 0 Total Construction 0 144,448 144,448 d. Total Capital Outlay (Lines 1.a. + 1.b. + 1.c.5) 0 144,448 144,448 (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 2 See the accompanying Independent Auditors' Report. 37