Document Monument_doc_d267c786d3

TOWN OF MONUMENT, COLORADO BASIC FINANCIAL STATEMENTS December 31, 2015 ---PAGE BREAK--- INTRODUCTORY SECTION ---PAGE BREAK--- TOWN OF MONUMENT, COLORADO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2015 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 Chris Lowe – Town Manager Pamela Smith – Town Treasurer Sirochman – Town Clerk Jacob Shirk – Chief of Police Thomas Tharnish – Public Works Director Larry Manning – Planning Director ---PAGE BREAK--- TABLE OF CONTENTS PAGE INTRODUCTORY SECTION Title Page Table of Contents FINANCIAL SECTION Independent Auditors’ Report a - b Management’s Discussion and Analysis i - x Basic Financial Statements Government – Wide Financial Statements Statements of Net Position 1 Statements of Activities 2 Fund Financial Statements Balance Sheets – Governmental Funds 3 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, 2015, 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, 2015, 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, 2014, by which a report dated July 21, 2015 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 June 13, 2016 ---PAGE BREAK--- i 2015 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, 2015. 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 2015 by $19,729,863 (net position). Of this amount, $2,226,455 (unrestricted net position) may be used for the Town’s obligations to citizens and creditors.  At December 31, 2015, the Town of Monument’s governmental funds reported combined ending fund balances of $2,995,325 an increase of $170,674 in comparison with the prior year. $891,867 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 $930,867, or 19.2% of the total General Fund expenditures. This is an increase of 5.9% from the prior year.  Sales and use taxes revenue, the Town’s largest source of revenue was $3,935,867 for 2015 as compared to $3,554,420 for the prior year, an increase of 10.7%. The key factor for this was an increase in commercial and residential development and a more robust economy in 2015. 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 12th year the Town has reported using the GASB 34 model. Comparisons of 2014 to 2015 follow. In the case of the Town of Monument, assets exceeded liabilities by $19,449,638 at the end of 2014 and at the end of 2015 by $19,729,863 an increase in Total Net Position of $280,225 or 1.5%. Assets 2015 2014 2015 2014 2015 2014 Governmental Activities Governmental Activities Business- type Activities Business- type Activities Total Total Current and other assets $4,386,649 $4,247,110 $ 473,802 $ 527,539 $ 4,860,451 $ 4,774,649 Capital assets, net 10,368,850 10,988,333 7,394,388 7,328,453 17,763,238 18,316,786 Total assets 14,755,499 15,235,443 7,868,190 7,855,992 22,623,689 23,091,435 Liabilities Long term liabilities 434,533 985,774 100,870 295,984 535,403 1,281,758 Other liabilities 1,292,055 1,357,764 301,208 307,175 1,593,263 1,664,939 Total liabilities 1,726,588 2,343,538 402,078 603,159 2,128,666 2,946,697 Deferred Inflow of Resources Deferred Property Tax Revenue 765,160 695,100 - - 765,160 695,100 Net Position Net investment in capital assets 9,501,983 9,564,008 7,132,446 6,858,489 16,634,429 16,422,497 Restricted 177,170 215,172 691,809 691,809 868,979 906,981 Unrestricted 2,584,598 2,417,625 (358,143) (297,465) 2,226,455 2,120,160 Total net position $12,263,751 $12,196,805 $7,466,112 $7,252,833 $19,729,863 $19,449,638 ---PAGE BREAK--- iv The largest portion of the Town of Monument’s net position (84%) 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, $2,226,455, 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 $280,225 during 2015. Governmental Activities reported an $66,946 increase, with sales tax revenue and property taxes being the largest contributors. CHANGES IN NET POSITION 2015 Governmental Type Activities 2014 Governmental Type Activities 2015 Business Type Activities 2014 Business Type Activities 2015 Total 2014 Total Revenues: Program revenues: Charges for Services $421,354 $406,142 844,733 $898,902 $1,266,087 $1,305,044 Operating Grants & Contributions 86,264 405,271 - - 86,264 405,271 Capital Grants & Contributions 40,532 246,358 252,470 810,000 293,002 1,056,358 General revenues: Property taxes 770,446 767,251 - - 770,446 767,251 Sales taxes 3,831,968 3,447,413 103,899 107,007 3,935,867 3,554,420 Franchise taxes 348,003 317,895 - - 348,003 317,895 Other Taxes 234,806 209,479 - - 234,806 209,479 Investment income 6,044 3,381 436 813 6,480 4,194 Other Misc 6,100 6,500 19,958 1,776 26,058 8,276 Transfers (367,484) (88,241) 367,484 88,241 - - Total revenues 5,378,033 5,721,449 1,588,980 1,906,739 6,967,013 7,628,188 Program expenses: General government 1,855,144 1,776,664 - - 1,855,144 1,776,664 Public safety 1,494,455 1,320,450 - - 1,494,455 1,320,450 Public works, Parks & Recreation 1,892,826 1,699,069 - - 1,892,826 1,699,069 Interest on long-term debt 68,662 71,331 16,222 34,471 84,884 105,802 Water - - 1,359,479 1,249,121 1,359,479 1,249,121 Total expenses 5,311,087 4,867,514 1,375,701 1,283,592 6,686,788 6,151,106 Increase (decrease) in net position 66,946 853,935 213,279 623,147 280,225 1,477,082 Net position 12/31/14 12,196,805 11,342,870 7,252,833 6,629,686 19,449,638 17,972,556 Net Position 12/31/15 $12,263,751 $12,196,805 $7,466,112 $7,252,833 $19,729,863 $19,449,638 ---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 76%. Property taxes are the second largest revenue source at 14% of the Town’s revenue for governmental activities. Charges for services include planning, traffic impact and storm drainage impact fees and along with franchise fees comprise the third largest revenue source of the Town’s governmental activities at The remaining interest income along with grants & contributions accounts for 3% of total revenues. ---PAGE BREAK--- vii Business-type Activities Charges for services account for 53% of the Town’s revenue for business-type activities. Sales taxes account for 7% and the remaining interest income, grants & contributions and miscellaneous revenue accounts for 40% 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 $4,929,105, which was $344,804 over budget. Significant balances and transactions for General Fund expenditures include $37,664 on buildings; $62,568 on furniture and equipment; $8,655 on vehicles and street equipment; $21,466 on park improvements and $127,933 on street improvements. There was no CDOT grant match for the sidewalk project this year, for total capital outlay of $258,286. The Water Department spent $0.00 on well repairs; $26,428 on equipment; $367,484 on transmission & distribution lines and $5,097 on construction for total capital outlay of $399,009. The 2A Water ASD Fund spent $367,484 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 3% Performance Based raises and had no layoffs in 2015. The Town is within range for the state-wide CML Salary Survey. We were also able to restructure the Police pay for performance model to assist in retaining staff. Water Fund revenue was less than Budget by $337,591 due to fees for service across the budget coming in under projected revenues. Customer usage decreased $88,449 from 2014 to 2015. Tap fee revenue in 2015 was $252,470 which was $197,530 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 $844,733 and Sales Tax Revenue was $103,899. Water Fund actual budgetary expenses were approximately $276,913 below budget in 2015 due to decreased operations and maintenance funds being expended and deferring capital expenses due to decreased revenues. ---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 $5,091,336. Actual expenditures for 2015 were $4,844,067 an amount favorable to budgeted expenditures of $247,243. This positive variance was the result, in part, of salary savings; reduced Department expenditures and the Town’s decision not to purchase all approved capital items. The following pie chart shows the distribution of expenses by program/function. ---PAGE BREAK--- 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, 2015 totaled $17,763,238 (net of accumulated depreciation). Water fund capital assets represent 42% of this total. The capital projects for the Town’s governmental activities consisted of expenditures including $37,664 on buildings; $62,568 on furniture and equipment; $8,655 on vehicles and street equipment; $21,466 on park improvements and $127,933 on street improvements. There was no CDOT grant match for the sidewalk project this year, for total capital outlay of $258,286. The Water Department spent $0.00 on well repairs; $26,428 on equipment; $367,484 on transmission & distribution lines and $5,097 on construction for total capital outlay of $399,009. The 2A Water ASD Fund spent $367,484 for capital projects contributed to the water enterprise fund. Note 5 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 $725,109 during 2015. The Town’s long-term debt related to governmental activities decreased in 2015. Payments of $606,615 were made on bonds, loans and capital lease obligations during the year. The Town did enter into a new lease agreement in 2015 for new servers for our IT system. The Town’s long-term debt related to business-type activities decreased in 2015. Payments of $208,022 were made on bonds, loans and capital lease obligations. The Town did not enter into any lease agreements in 2015 in the Enterprise Fund. 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 2015 was 4.0% down 1.1% from the 2014 average. This compares to the national average of 5.0% and state average of 3.5% for 2015. Total land use permits issued in 2015 were 241, with 226 residential and 15 commercial. This is up 83 permits from 2014, with the majority of the increase coming in new single family homes. 2016 is expected to be higher than 2015 numbers, due to several new residential developments beginning in the Town. Total retail sales tax is budgeted at $5,225,500 for 2016, which compares to $5,028,916 in 2015, an increase of 3.9%. Property tax revenue is expected to increase $73,306 in 2016. This increase reflects a slight upswing in development over the previous year. The mill levy for 2016 is 6.255 mills. This is a one-time reduction to bring the Town into compliance with Tabor and Gallagher laws. The mill levy for 2015 was 6.289 mills, unchanged since 2008. The 2016 budget includes capital projects for general asphalt repairs and repair to Old Denver Highway. There is money budgeted for a concrete floor for the new pavilion for Lavallette Park. Also included in the capital project for Public Works are: street sweeper maintenance and a snow push box for the loader, which was forwarded from 2014. Public Works also has the Cemetery Irrigation System scheduled for replacement; a Variable Message Board; an F250 Truck; and Mitchell Road/2nd Street Parking Improvements. Administration/Police have a one-half share of the new building generator that will be cost shared with the Water Department’s generator for the booster pump station. Administration also has a small amount budgeted for Building Alterations and Equipment. The Police Department has a new Police Car and Ballistic Helmets in their Budget. The Planning Department will continue with sidewalk improvements. The Water Enterprise Fund has capital for moving the bulk water fill station; Dedicated Sample Site for Testing; Leak Detection Equipment; Generator Hook Up for Booster Pump Station; a F150 Truck; SCADA software upgrades; Lightening Protection for the water plants; Distribution line R&M; Well 8 Transfer Switch for the Generator; and a new Portable Generator. 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 2015 2014 ASSETS Cash and Investments 1,940,370 $ - $ 1,940,370 $ 2,100,332 $ Restricted Cash and Investments 40,550 920,839 961,389 942,402 Receivables Property Taxes 765,160 - 765,160 695,100 Sales and Other 1,072,135 - 1,072,135 977,714 Accounts 61,911 57,804 119,715 55,029 Grants - - - 3,162 Interfund Amounts 504,841 (504,841) - - Prepaid Expenses 1,682 - 1,682 910 Capital Assets, Not Depreciated 802,290 3,569,766 4,372,056 4,372,056 Capital Assets, Depreciated Net of Accumulated Depreciation 9,566,560 3,824,622 13,391,182 13,944,730 TOTAL ASSETS 14,755,499 7,868,190 22,623,689 23,091,435 LIABILITIES Accounts Payable 456,953 53,725 510,678 581,806 Accrued Salaries and Benefits 49,996 13,409 63,405 99,419 Accrued Interest 17,679 5,007 22,686 24,174 Developer Escrow and Deposits 119,215 25,559 144,774 129,066 Noncurrent Liabilities Due within One Year 648,212 207,752 855,964 830,474 Due in More Than One Year 434,533 96,626 531,159 1,281,758 TOTAL LIABILITIES 1,726,588 402,078 2,128,666 2,946,697 DEFERRED INFLOW OF RESOURCES Deferred Property Tax Revenue 765,160 - 765,160 695,100 NET POSITION Net Investment in Capital Assets 9,501,983 7,132,446 16,634,429 16,422,497 Restricted for Emergencies 164,000 - 164,000 203,000 Restricted for Parks and Recreation 13,170 - 13,170 12,149 Restricted for Future Water Storage - 675,000 675,000 675,000 Restricted for Debt Service - 16,809 16,809 16,832 Unrestricted, Unreserved 2,584,598 (358,143) 2,226,455 2,120,160 TOTAL NET POSITION 12,263,751 $ 7,466,112 $ 19,729,863 $ 19,449,638 $ TOTAL TOWN OF MONUMENT, COLORADO STATEMENT OF NET POSITION December 31, 2015 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 1,855,144 $ 252,940 $ 37,195 $ - $ Public Safety 1,494,455 88,381 - - Public Works 1,821,905 80,033 49,069 - Parks and Recreation 70,921 - - 40,532 Interest on Long-Term Debt 68,662 - - - Total Governmental Activities 5,311,087 421,354 86,264 40,532 Business-Type Activities Water 1,359,479 844,733 - 252,470 Interest on Long-Term Debt 16,222 - - - Total Business-Type Activities 1,375,701 844,733 - 252,470 Total Primary Government 6,686,788 $ 1,266,087 $ 86,264 $ 293,002 $ 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, 2015 The accompanying notes are an integral part of the financial statements. 2 ---PAGE BREAK--- GOVERNMENTAL BUSINESS-TYPE ACTIVITIES ACTIVITIES 2015 2014 (1,565,009) $ - $ (1,565,009) $ (1,515,402) $ (1,406,074) - (1,406,074) (1,267,009) (1,692,803) - (1,692,803) (1,139,761) (30,389) - (30,389) 183,760 (68,662) - (68,662) (71,331) (4,762,937) - (4,762,937) (3,809,743) - (262,276) (262,276) 459,781 - (16,222) (16,222) (34,471) - (278,498) (278,498) 425,310 (4,762,937) (278,498) (5,041,435) (3,384,433) 3,831,968 103,899 3,935,867 3,554,420 770,446 - 770,446 767,251 348,003 - 348,003 317,895 234,806 - 234,806 209,479 6,044 436 6,480 4,194 6,100 19,958 26,058 8,276 (367,484) 367,484 - - 4,829,883 491,777 5,321,660 4,861,515 66,946 213,279 280,225 1,477,082 12,196,805 7,252,833 19,449,638 17,972,556 12,263,751 $ 7,466,112 $ 19,729,863 $ 19,449,638 $ TOTALS NET (EXPENSE) REVENUE AND CHANGE IN NET POSITION ---PAGE BREAK--- OTHER GENERAL 2A WATER GOVERNMENTAL FUND ASD FUND FUNDS 2015 2014 ASSETS Cash and Investments 39,912 $ 1,642,176 $ 258,282 $ 1,940,370 $ 2,100,332 $ Restricted Cash and Investments 40,550 - 40,550 40,550 Property Taxes Receivable 765,160 - - 765,160 695,100 Other Taxes Receivable 1,072,135 - - 1,072,135 977,714 Accounts Receivable 61,911 - - 61,911 1,755 Grants Receivable - - 3,162 Due From Other Funds 504,841 - - 504,841 427,587 Prepaid Expense 1,682 - - 1,682 910 TOTAL ASSETS 2,486,191 1,642,176 258,282 4,386,649 4,247,110 LIABILITIES, DEFERRED INFLOWS AND FUND EQUITY LIABILITIES Accounts Payable 456,953 - - 456,953 525,642 Accrued Salaries and Benefits 49,996 - - 49,996 86,010 Developer Escrow 119,215 - - 119,215 115,707 TOTAL LIABILITIES 626,164 - - 626,164 727,359 DEFERRED INFLOW OF RESOURCES Deferred Property Tax Revenue 765,160 - - 765,160 695,100 FUND EQUITY Fund Balance Restricted for Emergencies 164,000 - - 164,000 203,000 Restricted for Parks and Recreation - - 13,170 13,170 12,149 Restricted for Debt Service - - - - 23 Committed - 1,642,176 245,112 1,887,288 1,944,899 Unassigned 930,867 - - 930,867 664,580 TOTAL FUND EQUITY 1,094,867 1,642,176 258,282 2,995,325 2,824,651 TOTAL LIABILITIES, DEFERRED INFLOWS, AND FUND EQUITY 2,486,191 $ 1,642,176 $ 258,282 $ 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. 10,368,850 10,988,333 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 ($299,500), Capital Leases ($543,380), Accrued Compensated Absences ($239,865), and Accrued Interest Payable ($17,679). (1,100,424) (1,616,179) Net position of governmental activities 12,263,751 $ 12,196,805 $ TOTALS TOWN OF MONUMENT, COLORADO BALANCE SHEET GOVERNMENTAL FUNDS December 31, 2015 The accompanying notes are an integral part of the financial statements. 3 ---PAGE BREAK--- OTHER GENERAL 2A WATER GOVERNMENTAL FUND ASD FUND FUNDS 2015 2014 REVENUES Taxes 4,321,019 $ 477,360 $ 153,852 $ 4,952,231 $ 4,534,314 $ Licenses and Permits 34,477 - 55,962 90,439 77,250 Charges for Services 162,501 - 80,033 242,534 275,451 Intergovernmental 319,256 - 40,532 359,788 653,853 Court 88,381 - - 88,381 53,441 Interest 3,471 2,242 331 6,044 3,381 Miscellaneous - - 6,100 6,100 6,500 TOTAL REVENUES 4,929,105 479,602 336,810 5,745,517 5,604,190 EXPENDITURES General Government 1,664,664 - 14,887 1,679,551 1,661,856 Public Safety 1,453,402 - - 1,453,402 1,271,779 Public Works 976,908 144,336 - 1,121,244 897,449 Parks and Recreation - - 39,528 39,528 38,352 Debt Service Principal 476,615 - 130,000 606,615 576,400 Interest 38,724 - 23,875 62,599 83,851 Capital Outlay 233,754 345,833 77,513 657,100 961,067 TOTAL EXPENDITURES 4,844,067 490,169 285,803 5,620,039 5,490,754 EXCESS OF REVENUES OVER (UNDER) EXPENDITURES 85,038 (10,567) 51,007 125,478 113,436 OTHER FINANCING SOURCES (USES) Proceeds from Issuance of Debt 45,196 - - 45,196 - Transfers In 97,053 - - 97,053 27,500 Transfers Out - (97,053) - (97,053) (27,500) TOTAL OTHER FINANCING SOURCES (USES) 142,249 (97,053) - 45,196 - NET CHANGE IN FUND BALANCES 227,287 (107,620) 51,007 170,674 113,436 FUND BALANCES, Beginning 867,580 1,749,796 207,275 2,824,651 2,711,215 FUND BALANCES, Ending 1,094,867 $ 1,642,176 $ 258,282 $ 2,995,325 $ 2,824,651 $ TOTALS AND CHANGES IN FUND BALANCES - GOVERNMENTAL FUNDS Year Ended December 31, 2015 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 170,674 $ Governmental funds report capital outlays as expenditures. However, in the statement of activities, the cost of those assets is allocated over their estimated useful lives and reported as depreciation expense. This is the amount by which depreciation ($877,769), exceeded capital outlay $258,286 in the current period. (619,483) 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. (45,196) 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 $130,000, payments of capital leases of $476,615, and change in accrued compensated absences of ($39,601). 567,014 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. (6,063) Change in Net Position of Governmental Activities 66,946 $ Year Ended December 31, 2015 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--- 2015 2014 ASSETS Current Assets Restricted Cash and Investments 920,839 $ 901,852 $ Accounts Receivable 57,804 53,274 Total Current Assets 978,643 955,126 Noncurrent Assets Capital Assets, net of accumulated depreciation 7,394,388 7,328,453 TOTAL ASSETS 8,373,031 8,283,579 LIABILITIES Current Liabilities Accounts Payable 53,725 56,164 Accrued Expenses 13,409 13,409 Due to General Fund 504,841 427,587 Accrued Interest Payable 5,007 12,558 Accrued Compensated Absences, Current Portion - 3,771 Leases Payable, Current Portion 8,253 22,526 Bonds and Loan Payable, Current Portion 195,255 185,388 Total Current Liabilities 780,490 721,403 Noncurrent Liabilities Deposits 25,559 13,359 Accrued Compensated Absences 42,436 33,934 Leases Payable 7,154 15,515 Bonds and Loan Payable 51,280 246,535 Total Noncurrent Liabilities 126,429 309,343 TOTAL LIABILITIES 906,919 1,030,746 NET POSITION Net Investment in Capital Assets 7,132,446 6,858,489 Restricted for Debt Service 16,809 16,809 Restricted for Future Water Storage 675,000 675,000 Unreserved (358,143) (297,465) TOTAL NET POSITION 7,466,112 $ 7,252,833 $ TOWN OF MONUMENT, COLORADO STATEMENT OF NET POSITION PROPRIETARY FUND TYPE December 31, 2015 The accompanying notes are an integral part of the financial statements. 6 ---PAGE BREAK--- 2015 2014 OPERATING REVENUES Charges for Services 844,733 $ 898,902 $ Miscellaneous Income 19,958 1,776 TOTAL OPERATING REVENUES 864,691 900,678 OPERATING EXPENSES Operations and Maintenance 884,535 821,815 Administrative and General 141,870 126,773 Depreciation 333,074 300,533 TOTAL OPERATING EXPENSES 1,359,479 1,249,121 OPERATING LOSS (494,788) (348,443) NON-OPERATING REVENUES (EXPENSES) Sales Taxes 103,899 107,007 Interest Income 436 813 Interest Expenses (16,222) (34,471) TOTAL NON-OPERATING REVENUES (EXPENSES) 88,113 73,349 LOSS BEFORE CAPITAL CONTRIBUTIONS (406,675) (275,094) Capital Contributions Tap Fees 252,470 135,000 Water Storage Fees - 675,000 Other Funds 367,484 88,241 TOTAL CAPITAL CONTRIBUTIONS 619,954 898,241 NET INCOME (LOSS) 213,279 623,147 NET POSITION, Beginning 7,252,833 6,629,686 NET POSITION, Ending 7,466,112 $ 7,252,833 $ TOWN OF MONUMENT, COLORADO STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION PROPRIETARY FUND TYPE Year Ended December 31, 2015 The accompanying notes are an integral part of the financial statements. 7 ---PAGE BREAK--- 2015 2014 CASH FLOWS FROM OPERATING ACTIVITIES Cash Received from Customers 840,203 $ 894,622 $ Cash Received from Others 19,958 1,776 Cash Paid to Suppliers (569,093) (324,171) Cash Paid to Employees (377,766) (355,763) Net Cash Provided (Used) by Operating Activities (86,698) 216,464 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Sales Tax Received 103,899 107,007 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Purchase of Capital Assets (31,525) (160,699) Bond Payments (208,022) (197,889) Interest Payments (23,773) (33,778) Capital Contributions Tap Fees 252,470 135,000 Water Storage Fees - 675,000 Deposits Received from Customers 12,200 2,300 Net Cash Provided by Capital and Related Financing Activities 1,350 419,934 CASH FLOWS FROM INVESTING ACTIVITIES Interest Received 436 813 Net Increase in Cash and Cash Equivalents 18,987 744,218 CASH AND CASH EQUIVALENTS, Beginning 901,852 157,634 CASH AND CASH EQUIVALENTS, Ending 920,839 $ 901,852 $ RECONCILIATION OF OPERATING LOSS TO NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES Operating Loss (494,788) $ (348,443) $ Adjustments to Reconcile Operating Loss to Net Cash Provided (Used) by Operating Activities Depreciation and Amortization 333,074 300,533 Changes in Assets and Liabilities Accounts Receivable (4,530) (4,280) Due to Other Funds 77,254 227,910 Accounts Payable (2,439) 26,729 Accrued Compensated Absences 4,731 14,015 Total Adjustments 408,090 564,907 Net Cash Provided (Used) by Operating Activities (86,698) $ 216,464 $ NON-CASH ACTIVITIES Capital Contributions - Other Funds 367,484 $ 88,241 $ TOWN OF MONUMENT, COLORADO STATEMENT OF CASH FLOWS PROPRIETARY FUND TYPE Year Ended December 31, 2015 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, 2015 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, 2015 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, 2015 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, 2015 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, 2015 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, 2015.  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, 2015 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, 2015 15 NOTE 3: DEPOSITS AND INVESTMENTS A summary of deposits and investments as of December 31, 2015 follows: Petty Cash $ 1,563 Cash Deposits 376,865 Investments 2,523,331 Total $ 2,901,759 The above amounts are classified in the statement of net position as follows: Cash and Investments $ 1,940,370 Restricted Cash and Investments 961,389 Total $ 2,901,759 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, 2015 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, 2015, the Town had deposits with financial institutions with a carrying amount of $376,865. The bank balances with the financial institutions were $306,078, which were covered by the FDIC. ---PAGE BREAK--- TOWN OF MONUMENT, COLORADO NOTES TO FINANCIAL STATEMENTS December 31, 2015 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 $2,253,331 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 $ 229,030 Future Water Storage – Water Fund 675,000 Debt Service Reserve – Water Fund 16,809 Debt Service Reserve – Governmental Fund 40,550 Total $ 961,389 ---PAGE BREAK--- TOWN OF MONUMENT, COLORADO NOTES TO FINANCIAL STATEMENTS December 31, 2015 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, 2015, the Town’s water fund restricted cash of $229,030 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, 2015. 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, 2015. NOTE 4: INTERFUND BALANCES AND TRANSFERS Interfund balances at December 31, 2015, were comprised of the following: Due from Other Funds Due to Other Funds Amount General Water $ 504,841 At December 31, 2015, the General Fund continues to subsidized the negative unrestricted cash balance of the Water Fund. Interfund transfers for the year ended December 31, 2014, consisted of the following: Transfers In Transfers Out Amount General 2A Water ASD $ 97,053 During the year ended December 31, 2015, the 2A Water ASD Fund transferred to the General Fund an amount for sales taxes from prior years that were incorrectly reported in the fund. ---PAGE BREAK--- TOWN OF MONUMENT, COLORADO NOTES TO FINANCIAL STATEMENTS December 31, 2015 18 NOTE 5: CAPITAL ASSETS Capital assets activity for the year ended December 31, 2015 is summarized below: Depreciation expense was charged to functions/programs of the Town as follows: Governmental Activities General Government $ 135,992 Public Safety 41,053 Public Works 669,331 Parks and Recreation 31,393 Total $ 877,769 Balances Balances 12/31/2014 Additions Deletions 12/31/2015 Governmental Activities: Capital Assets, not being depreciated Land 802,290 $ - $ - $ 802,290 $ Capital Assets, being depreciated Buildings 3,835,533 37,664 - 3,873,197 Infrastructure 8,367,154 - - 8,367,154 Water Rights 135,324 - - 135,324 Furniture and Equipment 532,710 62,568 - 595,278 Vehicles and Street Equipment 1,622,691 8,655 - 1,631,346 Park Improvements 569,868 21,466 - 591,334 Street Improvements 3,896,494 127,933 - 4,024,427 Total Capital Assets, being depreciated 18,959,774 258,286 - 19,218,060 Less accumulated depreciation Buildings (964,082) (123,878) - (1,087,960) Infrastructure (4,089,344) (278,905) - (4,368,249) Water Rights (15,632) (2,706) - (18,338) Furniture and Equipment (337,735) (48,637) - (386,372) Vehicles and Street Equipment (1,174,475) (78,044) - (1,252,519) Park Improvements (252,320) (31,393) - (283,713) Street Improvements (1,940,143) (314,206) - (2,254,349) Total accumulated depreciation (8,773,731) (877,769) - (9,651,500) Total Capital Assets, being depreciated, net 10,186,043 (619,483) - 9,566,560 Governmental Activities Capital Assets, net 10,988,333 $ (619,483) $ - $ 10,368,850 $ ---PAGE BREAK--- TOWN OF MONUMENT, COLORADO NOTES TO FINANCIAL STATEMENTS December 31, 2015 19 NOTE 5: CAPITAL ASSETS (Continued) Balances Balances 12/31/2014 Additions Deletions 12/31/2015 Business-type Activities: Capital Assets, not being depreciated Water Master Plan 636,111 $ - $ - $ 636,111 $ Construction in Progress 2,933,655 - - 2,933,655 Total Capital Assets, not being depreciated 3,569,766 - - 3,569,766 Capital Assets, being depreciated Water Rights 125,000 - - 125,000 Alluvium Wells 420,392 - - 420,392 Public Works Building 113,800 5,097 - 118,897 Iron Treatment Plant 287,854 - - 287,854 Water Treatment Plant 1,199,322 - - 1,199,322 Other Equipment 787,485 26,428 - 813,913 Slabaugh Well 191,390 - - 191,390 Wells/Treatment 7,533,685 - - 7,533,685 Transmission & Distribution 1,601,954 367,484 - 1,969,438 Vehicles 279,031 - - 279,031 Total Capital Assets, being depreciated 12,539,913 399,009 - 12,938,922 Less accumulated depreciation Water Rights (52,500) (2,500) - (55,000) Alluvium Wells (372,558) (14,673) - (387,231) Public Works Building (30,344) (4,304) - (34,648) Iron Treatment Plant (254,269) (9,596) - (263,865) Water Treatment Plant (346,994) (39,977) - (386,971) Other Equipment (599,118) (36,015) - (635,133) Slabaugh Well (86,129) (3,828) - (89,957) Wells/Treatment (5,304,482) (149,958) - (5,454,440) Transmission & Distribution (1,491,652) (63,879) - (1,555,531) Vehicles (243,180) (8,344) - (251,524) Total accumulated depreciation (8,781,226) (333,074) - (9,114,300) Total Capital Assets, being depreciated, net 3,758,687 65,935 - 3,824,622 Business-type Activities Capital Assets, net 7,328,453 $ 65,935 $ - $ 7,394,388 $ ---PAGE BREAK--- TOWN OF MONUMENT, COLORADO NOTES TO FINANCIAL STATEMENTS December 31, 2015 20 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, 2015. 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 9.16%. These leases mature from 2008-2018. Balance Balance Due Within 12/31/2014 Additions Deletions 12/31/2015 One Year Govenmental Activities 1979 GO Water Bonds 29,500 $ - $ 5,000 $ 24,500 $ 5,500 $ 1997 Loan 400,000 - 125,000 275,000 135,000 Capital Leases 974,799 45,196 476,615 543,380 483,725 Accrued Compensated Absences 200,264 39,601 - 239,865 23,987 1,604,563 $ 84,797 $ 606,615 $ 1,082,745 $ 648,212 $ ---PAGE BREAK--- TOWN OF MONUMENT, COLORADO NOTES TO FINANCIAL STATEMENTS December 31, 2015 21 NOTE 6: LONG-TERM DEBT (Continued) Future Debt Service Requirements Annual debt service requirements for the outstanding bonds at December 31, 2015 are as follows: Following is a schedule of the future minimum lease payments required under the outstanding capital lease obligations at December 31, 2015. Business-Type Activities Following is a summary of long-term debt transactions for the business-type activities for the year ended December 31, 2015. Year Ended December 31 Principal Interest Total 2016 140,500 $ 16,625 $ 157,125 $ 2017 145,500 8,790 154,290 2018 6,500 675 7,175 2019 7,000 350 7,350 299,500 $ 26,440 $ 325,940 $ Year Ended December 31 2016 483,920 $ 2017 87,960 2018 7,197 Total Minimum Lease Payments 579,077 Less: Interest (35,697) Present Value of Future Minimum Lease Payments 543,380 $ Balance Balance Due Within 12/31/2014 Additions Deletions 12/31/2015 One Year Business-type Activities 1995 GO Water Refunding 75,500 $ - $ 36,900 $ 38,600 $ 38,600 $ 2002 CWCB Loan 356,423 - 148,488 207,935 156,655 Capital Leases 38,041 ‐ 22,634 15,407 8,253 Accrued Compensated Absences 37,705 4,731 ‐ 42,436 4,244 507,669 $ 4,731 $ 208,022 $ 304,378 $ 207,752 $ ---PAGE BREAK--- TOWN OF MONUMENT, COLORADO NOTES TO FINANCIAL STATEMENTS December 31, 2015 22 NOTE 6: 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, 2015. 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, 2015 are as follows: Following is a schedule of the future minimum lease payments required under the outstanding capital lease obligations at December 31, 2015. Year Ended December 31 Principal Interest Total 2016 195,255 $ 12,925 $ 208,180 $ 2017 51,280 2,820 54,100 246,535 $ 15,745 $ 262,280 $ Year Ended December 31 2016 8,596 $ 2017 7,411 Total Minimum Lease Payments 16,007 Less: Interest (600) Present Value of Future Minimum Lease Payments 15,407 $ ---PAGE BREAK--- TOWN OF MONUMENT, COLORADO NOTES TO FINANCIAL STATEMENTS December 31, 2015 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, 2015 totaled $14,502,333. Subsequent Capital Leases Subsequent to the year ended December 31, 2015, the Town entered into two capital leases for purchase of equipment, with annual repayment of principal and interest in the amounts of $69,431 and $65,135 for three and five year periods, respectively. The leases require interest to be paid at rates ranging from 2.12% to 2.36%. These leases mature in 2018 and 2020, respectively. 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, 2015, the Town contributions were $109,101, equal to the required contribution. The deferred compensation is not available to employees until termination, retirement, death or unforeseeable emergency. 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, 2015, the Town and employee contributions were $18,358, equal to the required contribution. ---PAGE BREAK--- TOWN OF MONUMENT, COLORADO NOTES TO FINANCIAL STATEMENTS December 31, 2015 24 NOTE 8: PUBLIC ENTITY RISK POOL The Town is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors and omissions; injuries to employees; and natural disasters. For these risks of loss, the Town is involved with the Colorado Intergovernmental Risk Sharing Agency (CIRSA), a separate and independent governmental and legal entity formed by intergovernmental agreement by member municipalities pursuant to the provision of 24-10-115.5, Colorado Revised Statutes (1982 Replacement Volume) and Colorado Constitution, Article XIV, Section 18(2). The purposes of CIRSA are to provide members defined liability, property, and workers compensation coverages and to assist members in preventing and reducing losses and injuries to municipal property and to persons or property which might result in claims being made against members of CIRSA, their employees and officers. It is the intent of the members of CIRSA to create an entity in perpetuity which will administer and use funds contributed by the members to defend and indemnify, in accordance with the bylaws, any member of CIRSA against stated liability of loss, to the limit of the financial resources of CIRSA. It is also the intent of the members to have CIRSA provide continuing stability and availability of needed coverages at reasonable costs. All income and assets of CIRSA shall be at all times dedicated to the exclusive benefit of its members. CIRSA is a separate legal entity and the Town does not approve budgets nor does it have the ability to significantly affect the operations of entity. NOTE 9: COMMITMENTS AND CONTINGENCIES Monument Lake and Dam During 1999, the Colorado Legislature enacted a law, which would grant ownership of the dam and, water storage rights to the town upon the completion of the reconstruction of the dam and acceptance by the Town. The Town is awaiting the deed from the Governor’s office. Construction was completed in September 2003; however, there are ongoing improvements being made prior to the transfer of ownership. Litigation The Town has been named as a defendant in a lawsuit. Subsequent to the year end, the lawsuit was settled and the Town was ordered to pay $350,000 to the claimant. ---PAGE BREAK--- TOWN OF MONUMENT, COLORADO NOTES TO FINANCIAL STATEMENTS December 31, 2015 25 NOTE 9: COMMITMENTS AND CONTINGENCIES (Continued) 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, 2015, the emergency reserve of $164,000 was recorded in the General Fund. ---PAGE BREAK--- REQUIRED SUPPLEMENTARY INFORMATION ---PAGE BREAK--- ORIGINAL VARIANCE AND FINAL Positive 2014 BUDGET ACTUAL (Negative) ACTUAL REVENUES Taxes 3,641,101 $ 4,321,019 $ 679,918 $ 3,979,285 $ Licenses and Permits 22,400 34,477 12,077 25,516 Charges for Services 97,500 162,501 65,001 149,047 Intergovernmental 652,500 319,256 (333,244) 612,995 Court 170,000 88,381 (81,619) 53,441 Interest 800 3,471 2,671 1,476 Miscellaneous - - - 5,000 TOTAL REVENUES 4,584,301 4,929,105 344,804 4,826,760 EXPENDITURES Current General Government 2,106,481 1,664,664 441,817 1,661,013 Public Safety 1,479,159 1,453,402 25,757 1,271,779 Public Works 1,115,478 976,908 138,570 816,002 Capital Outlay 251,000 233,754 17,246 750,770 Debt Service Principal 130,475 476,615 (346,140) 451,400 Interest 8,737 38,724 (29,987) 53,726 Contingency - - - - TOTAL EXPENDITURES 5,091,330 4,844,067 247,263 5,004,690 EXCESS OF REVENUES OVER (UNDER) EXPENDITURES (507,029) 85,038 592,067 (177,930) OTHER FINANCING SOURCES (USES) Proceeds from Issuance of Debt 259,000 45,196 (213,804) - Transfers In - 97,053 97,053 - Transfers (Out) - - - (27,500) TOTAL OTHER FINANCING SOURCES (USES) 259,000 142,249 (116,751) (27,500) NET CHANGE IN FUND BALANCE (248,029) 227,287 475,316 (205,430) FUND BALANCE, Beginning 671,055 867,580 196,525 1,073,010 FUND BALANCE, Ending 423,026 $ 1,094,867 $ 671,841 $ 867,580 $ 2015 (With Comparative Actual Total for the Year Ended December 31, 2014) TOWN OF MONUMENT, COLORADO GENERAL FUND BUDGETARY COMPARISON SCHEDULE Year Ended December 31, 2015 See the accompanying Independent Auditor's Report. 26 ---PAGE BREAK--- ORIGINAL VARIANCE AND FINAL Positive 2014 BUDGET ACTUAL (Negative) ACTUAL REVENUES Sales Tax 397,500 $ 477,360 $ 79,860 $ 399,881 $ Interest 2,000 2,242 242 1,698 TOTAL REVENUES 399,500 479,602 80,102 401,579 EXPENDITURES Public Works 169,000 144,336 24,664 81,447 Capital Outlay 1,918,575 345,833 1,572,742 88,241 TOTAL EXPENDITURES 2,087,575 490,169 1,597,406 169,688 EXCESS OF REVENUES OVER (UNDER) EXPENDITURES (1,688,075) (10,567) 1,677,508 231,891 OTHER FINANCING SOURCES (USES) Transfers (Out) - (97,053) (97,053) - NET CHANGE IN FUND BALANCE (1,688,075) (107,620) 1,580,455 231,891 FUND BALANCE, Beginning 1,688,075 1,749,796 61,721 1,517,905 FUND BALANCE, Ending - $ 1,642,176 $ 1,642,176 $ 1,749,796 $ 2015 (With Comparative Actual Total for the Year Ended December 31, 2014) TOWN OF MONUMENT, COLORADO 2A WATER ASD FUND BUDGETARY COMPARISON SCHEDULE Year Ended December 31, 2015 See the accompanying Independent Auditor's Report. 27 ---PAGE BREAK--- THIS PAGE INTENTIONALLY LEFT BLANK ---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 29,220 $ 13,170 $ 203,006 $ 12,886 $ TOTAL ASSETS 29,220 $ 13,170 $ 203,006 $ 12,886 $ FUND EQUITY Restricted for Parks and Recreation - $ 13,170 $ - $ - $ Restricted for Debt Service - - - - Committed 29,220 - 203,006 12,886 TOTAL FUND EQUITY 29,220 $ 13,170 $ 203,006 $ 12,886 $ TOWN OF MONUMENT, COLORADO NONMAJOR GOVERNMENTAL FUNDS COMBINING BALANCE SHEET December 31, 2015 SPECIAL REVENUE FUNDS See the accompanying Independent Auditor's Report. 28 ---PAGE BREAK--- DEBT SERVICE FUND 2015 2014 - $ 258,282 $ 207,275 $ - $ 258,282 $ 207,275 $ - $ 13,170 $ 12,149 $ - - 23 - 245,112 195,103 - $ 258,282 $ 207,275 $ TOTALS ---PAGE BREAK--- STORM COMMUNITY CONSERVATION TRAFFIC DRAINAGE DEVELOPMENT TRUST IMPACT FEE IMPACT FEE FUND FUND FUND FUND REVENUES Licenses and Permits 55,962 $ - $ - $ - $ Intergovernmental - 40,532 - - Charges for Services - - 52,318 27,715 Sales Tax - - - - Interest 24 17 282 8 Miscellaneous 6,100 - - - TOTAL REVENUES 62,086 40,549 52,600 27,723 EXPENDITURES General Government - - - 14,887 Parks and Recreation - 39,528 - - Capital Outlay 52,981 - 24,532 - Debt Service Principal - - - - Interest and Fiscal Charges - - - - TOTAL EXPENDITURES 52,981 39,528 24,532 14,887 EXCESS OF REVENUES OVER (UNDER) EXPENDITURES 9,105 1,021 28,068 12,836 OTHER FINANCING SOURCES (USES) Transfers In - - - - CHANGE IN FUND BALANCES 9,105 1,021 28,068 12,836 FUND BALANCES, Beginning 20,115 12,149 174,938 50 FUND BALANCES, Ending 29,220 $ 13,170 $ 203,006 $ 12,886 $ Year Ended December 31, 2015 SPECIAL REVENUE FUNDS STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES See the accompanying Independent Auditor's Report. 29 ---PAGE BREAK--- DEBT SERVICE FUND 2015 2014 - $ 55,962 $ 51,734 $ - 40,532 40,858 - 80,033 126,404 153,852 153,852 155,148 - 331 207 - 6,100 1,500 153,852 336,810 375,851 - 14,887 843 - 39,528 38,352 - 77,513 122,056 130,000 130,000 125,000 23,875 23,875 30,125 153,875 285,803 316,376 (23) 51,007 59,475 - - 27,500 (23) 51,007 86,975 23 207,275 120,300 - $ 258,282 $ 207,275 $ TOTALS ---PAGE BREAK--- ORIGINAL VARIANCE AND FINAL Positive 2014 BUDGET ACTUAL (Negative) ACTUAL REVENUES Business Licenses 53,000 $ 55,962 $ 2,962 $ 51,734 $ Interest 10 24 14 7 Miscellaneous - 6,100 6,100 1,500 TOTAL REVENUES 53,010 62,086 9,076 53,241 EXPENDITURES General Government - - - 843 Capital Outlay 53,010 52,981 29 58,402 TOTAL EXPENDITURES 53,010 52,981 29 59,245 EXCESS OF REVENUES OVER (UNDER) EXPENDITURES - 9,105 9,105 (6,004) OTHER FINANCING SOURCES Transfers In - - - 25,000 NET CHANGE IN FUND BALANCE - 9,105 9,105 18,996 FUND BALANCE, Beginning - 20,115 20,115 1,119 FUND BALANCE, Ending - $ 29,220 $ 29,220 $ 20,115 $ (With Comparative Actual Totals for the Year Ended December 31, 2014) 2015 TOWN OF MONUMENT, COLORADO COMMUNITY DEVELOPMENT FUND BUDGETARY COMPARISON SCHEDULE Year Ended December 31, 2015 See the accompanying Independent Auditor's Report. 30 ---PAGE BREAK--- ORIGINAL VARIANCE AND FINAL Positive 2014 BUDGET ACTUAL (Negative) ACTUAL REVENUES Lottery Revenues 45,000 $ 40,532 $ (4,468) $ 40,858 $ Interest 25 17 12 TOTAL REVENUES 45,025 40,549 (4,476) 40,870 EXPENDITURES Parks and Recreation 45,025 39,528 5,497 38,352 NET CHANGE IN FUND BALANCE - 1,021 1,021 2,518 FUND BALANCE, Beginning - 12,149 12,149 9,631 FUND BALANCE, Ending - $ 13,170 $ 13,170 $ 12,149 $ 2015 (With Comparative Actual Totals for the Year Ended December 31, 2014) TOWN OF MONUMENT, COLORADO CONSERVATION TRUST FUND BUDGETARY COMPARISON SCHEDULE Year Ended December 31, 2015 See the accompanying Independent Auditor's Report. 31 ---PAGE BREAK--- ORIGINAL VARIANCE AND FINAL Positive 2014 BUDGET ACTUAL (Negative) ACTUAL REVENUES Traffic Impact Fees 100,350 $ 52,318 $ (48,032) $ 104,798 $ Interest - 282 282 149 TOTAL REVENUES 100,350 52,600 (47,750) 104,947 EXPENDITURES Capital Outlay 100,350 24,532 75,818 1,722 NET CHANGE IN FUND BALANCE - 28,068 28,068 103,225 FUND BALANCE, Beginning - 174,938 174,938 71,713 FUND BALANCE, Ending - $ 203,006 $ 203,006 $ 174,938 $ (With Comparative Actual Totals for the Year Ended December 31, 2014) 2015 TOWN OF MONUMENT, COLORADO TRAFFIC IMPACT FEE FUND BUDGETARY COMPARISON SCHEDULE Year Ended December 31, 2015 See the accompanying Independent Auditor's Report. 32 ---PAGE BREAK--- ORIGINAL VARIANCE AND FINAL Positive 2014 BUDGET ACTUAL (Negative) ACTUAL REVENUES Storm Drainage Impact Fees 65,000 $ 27,715 $ (37,285) $ 21,606 $ Interest 90 8 (82) 39 TOTAL REVENUES 65,090 27,723 (37,367) 21,645 EXPENDITURES General Government 11,120 14,887 (3,767) - Capital Outlay 53,970 - 53,970 61,932 TOTAL EXPENDITURES 65,090 14,887 50,203 61,932 EXCESS OF REVENUES OVER (UNDER) EXPENDITURES - 12,836 12,836 (40,287) OTHER FINANCING SOURCES Transfers In - - - 2,500 NET CHANGE IN FUND BALANCE - 12,836 12,836 (37,787) FUND BALANCE, Beginning - 50 50 37,837 FUND BALANCE, Ending - $ 12,886 $ 12,886 $ 50 $ 2015 TOWN OF MONUMENT, COLORADO STORM DRAINAGE IMPACT FEE BUDGETARY COMPARISON SCHEDULE Year Ended December 31, 2015 (With Comparative Actual Totals for the Year Ended December 31, 2014) See the accompanying Independent Auditor's Report. 33 ---PAGE BREAK--- ORIGINAL VARIANCE AND FINAL Positive 2014 BUDGET ACTUAL (Negative) ACTUAL REVENUES Sales Tax 153,875 $ 153,852 $ (23) $ 155,148 $ TOTAL REVENUES 153,875 153,852 (23) 155,148 EXPENDITURES Debt Service Principal 130,000 130,000 - 125,000 Interest 23,875 23,875 - 30,125 TOTAL EXPENDITURES 153,875 153,875 - 155,125 NET CHANGE IN FUND BALANCE - (23) (23) 23 FUND BALANCE, Beginning - 23 23 - FUND BALANCE, Ending - $ - $ - $ 23 $ 2015 TOWN OF MONUMENT, COLORADO DEBT SERVICE FUND BUDGETARY COMPARISON SCHEDULE Year Ended December 31, 2015 (With Comparative Actual Totals for the Year Ended December 31, 2014) See the accompanying Independent Auditor's Report. 34 ---PAGE BREAK--- ORIGINAL VARIANCE AND FINAL Positive 2014 BUDGET ACTUAL (Negative) ACTUAL REVENUES Charges for Services 933,182 $ 844,733 $ (88,449) $ 898,902 $ Sales Tax 107,800 103,899 (3,901) 107,007 Tap Fees 450,000 252,470 (197,530) 135,000 Lease Proceeds 60,000 - (60,000) - Investment Income 221 436 215 813 Water Storage Fee - - - 675,000 Other Revenues 7,884 19,958 12,074 1,776 TOTAL REVENUES 1,559,087 1,221,496 (337,591) 1,818,498 EXPENDITURES Operations and Maintenance 943,741 884,535 59,206 821,815 Administration and General 130,919 141,870 (10,951) 126,773 Capital Outlay 232,397 31,525 200,872 160,699 Debt Service Principal 227,930 208,022 19,908 197,889 Interest 24,100 16,222 7,878 34,471 TOTAL EXPENDITURES 1,559,087 1,282,174 276,913 1,341,647 NET INCOME, Budget Basis - $ (60,678) (60,678) $ 476,851 GAAP BASIS ADJUSTMENTS Capital Contribution - Other Funds 367,484 88,241 Capital Outlay 31,525 160,699 Depreciation (333,074) (300,533) Principal Paid on Long-Term Debt 208,022 197,889 NET INCOME, GAAP Basis 213,279 623,147 NET POSITION, Beginning 7,252,833 6,629,686 NET POSITION, Ending 7,466,112 $ 7,252,833 $ 2015 TOWN OF MONUMENT, COLORADO WATER FUND BUDGETARY COMPARISON SCHEDULE Year Ended December 31, 2015 (With Comparative Actual Totals for the Year Ended December 31, 2014) See the accompanying Independent Auditor's 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 2015 This Information From The Records Of Town Of Monument Prepared By: Pamela Smith, Town Treasurer Phone: [PHONE REDACTED] A. Local B. Local C. Receipts from D. Receipts from Motor-Fuel Motor-Vehicle State Highway- Federal Highway Taxes Taxes User Taxes Administration 1. Total receipts available 2. Minus amount used for collection expenses 3. Minus amount used for nonhighway purposes 4. Minus amount used for mass transit 5. Remainder used for highway purposes AMOUNT AMOUNT A. Receipts from local sources: A. Local highway disbursements: 1. Local highway-user taxes 1. Capital outlay (from page 2) 166,943 a. Motor Fuel (from Item I.A.5.) 2. Maintenance: (128,488) b. Motor Vehicle (from Item I.B.5.) 3. Road and street services: c. Total a. Traffic control operations 0 2. General fund appropriations 204,731 b. Snow and ice removal 47,335 3. Other local imposts (from page 2) 167,507 c. Other 0 4. Miscellaneous local receipts (from page 2) 53,389 d. Total through 47,335 5. Transfers from toll facilities 0 4. General administration & miscellaneous 81,153 6. Proceeds of sale of bonds and notes: 5. Highway law enforcement and safety 518,766 a. Bonds - Original Issues 0 6. Total (1 through 5) 685,709 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) 425,627 b. Redemption 0 B. Private Contributions 0 c. Total + 0 C. Receipts from State government 2. Notes: (from page 2) 260,082 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) 685,709 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) 685,709 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 0 685,709 (685,709) 0 Notes and Comments: FORM FHWA-536 (Rev.1-05) PREVIOUS EDITIONS OBSOLETE (Next Page) Town of Monument AND STREET PURPOSES LOCAL HIGHWAY FINANCE REPORT I. DISPOSITION OF HIGHWAY-USER REVENUES AVAILABLE FOR LOCAL GOVERNMENT EXPENDITURE ITEM III. DISBURSEMENTS FOR ROAD V. LOCAL ROAD AND STREET FUND BALANCE ITEM II. RECEIPTS FOR ROAD AND STREET PURPOSES IV. LOCAL HIGHWAY DEBT STATUS (Show all entries at par) ITEM See the accompanying Independent Auditor's Report. 36 ---PAGE BREAK--- STATE: Colorado YEAR ENDING (mm/yy): December 2015 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 53,389 1. Sales Taxes 0 c. Parking Garage Fees 0 2. Infrastructure & Impact Fees 69,641 d. Parking Meter Fees 0 3. Liens 0 e. Sale of Surplus Property 0 4. Licenses 1,720 f. Charges for Services 0 5. Specific Ownership orOther 96,147 g. Other Misc. Receipts 0 6. Total through 167,507 h. Other 0 c. Total + 167,507 i. Total through 53,389 (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 232,992 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 27,091 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 27,091 g. Total through 0 4. Total + 2. + 3.f) 260,082 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 63,542 63,542 Capacity Improvements 0 0 0 System Preservation 0 103,401 103,401 System Enhancement & Operation 0 0 0 Total Construction 0 166,943 166,943 d. Total Capital Outlay (Lines 1.a. + 1.b. + 1.c.5) 0 166,943 166,943 (Carry forward to page 1) Notes and Comments: FORM FHWA-536 (Rev.1-05) PREVIOUS EDITIONS OBSOLETE III. DISBURSEMENTS FOR ROAD AND STREET PURPOSES - DETAIL II. RECEIPTS FOR ROAD AND STREET PURPOSES - DETAIL LOCAL HIGHWAY FINANCE REPORT ITEM ITEM ITEM ITEM See the accompanying Independent Auditor's Report. 37