TOWN OF CARY, NORTH CAROLINA
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
For the Year Ended June 30, 2007
EXHIBIT N Utility Governmental
Systems Activities -
Enterprise Internal
Fund Service Funds
OPERATING ACTIVITIES
Cash received from customers $41,777,667 10,014,426
Cash paid for goods and services (13,194,113) (281,920)
Cash paid to or on behalf of employees for services (11,183,409) (169,790)
Cash paid for health and dental insurance claims --- (7,780,846)
Other operating revenues 409,603 ---
   
NET CASH PROVIDED BY OPERATING ACTIVITIES 17,809,748 1,781,870
NONCAPITAL FINANCING ACTIVITIES
     Transfers In --- ---
     Transfers Out --- ---
     Morrisville Utility Merger Contributions 3,407,748 ---
     Receipt of Federal Grant 1,208,612 ---
     Receipt of Gas Tax Refunds --- ---
   
NET CASH PROVIDED BY NONCAPITAL FINANCING ACTIVITIES 4,616,360 ---
CAPITAL AND RELATED FINANCING ACTIVITIES
     Bond Proceeds 24,941,356 ---
     Refunded bond payments --- ---
     Bond Issuance Costs Paid (525,820) ---
     Principal Payments on Long-term Debt (6,647,064) ---
     Interest Paid on Long-term Debt (4,746,190) ---
     Morrisville Debt Payment (394,504) ---
     Water & Sewer Development Fees 15,922,406 ---
     Acquisition and Construction of Capital Assets (30,716,479) ---
     Miscellaneous Reimbursements 110,450 ---
     Payments on Assessments --- ---
     Proceeds from Sale of Assets 166,469 6,788
   
NET CASH PROVIDED BY (USED IN) CAPITAL AND
           RELATED FINANCING ACTIVITIES (1,889,376) 6,788
INVESTING ACTIVITIES
     Investment Earnings, net of market adjustment 6,695,826 50,250
NET CASH PROVIDED BY INVESTING ACTIVITIES 6,695,826 50,250
NET INCREASE IN CASH AND CASH EQUIVALENTS 27,232,558 1,838,908
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR 123,715,996 5,838,258
CASH AND CASH EQUIVALENTS AT END OF YEAR $150,948,554 7,677,166
RECONCILIATION OF OPERATING INCOME TO NET CASH
PROVIDED BY OPERATING ACTIVITIES
  Operating Income $10,350,697 1,540,133
  Adjustments to Reconcile Operating  Income
     to Net Cash Provided by Operating Activities
       Depreciation 8,847,248 50,876
       Changes in Assets and Liabilities - 
         Increase in Accounts Receivable (2,213,880) (16,309)
         Increase in Miscellaneous Receivable (375,484) ---
         Decrease in Inventory --- 12,100
         Decrease in Prepaids --- ---
         Increase (Decrease) in Accounts Payable and Accrued Liabilities 1,095,560 (9,602)
         Increase in Compensated Absenses Liability 70,061 2,774
         Increase (Decrease) in Miscellaneous Liability 173,872 (244,669)
         Increase in Deposits 45,076 ---
         Decrease in Deferred Revenue (593,005) ---
       Miscellaneous Revenue 409,603 446,567
  TOTAL ADJUSTMENTS 7,459,051 241,737
NET CASH PROVIDED BY OPERATING ACTIVITIES $17,809,748 1,781,870
NONCASH TRANSACTIONS
   Contributed Capital Assets ($7,338,173) ---
   Morrisville Utility Merger Contributions --- ---
   Capitalized Interest and Other Interest Adjustments (725,186) ---
   Loss from Assets Retired 19,076 ---
   Amortization of Deferred Loss on Refunding 78,135 ---
   Amortization of Deferred Bond Expenses (449,805) ---
   Amortization of Bond Premium (11,784) ---
   Developer Fee Credits Used (911,365) ---
   Morrisville Receivable Adjustment --- ---
   Net Change in Net Assets from
         Noncash Transactions
9,339,102 ---
NET EFFECT OF NONCASH TRANSACTIONS $          --- ---
The accompanying notes are an integral part of these basic financial statements.