TOWN OF CARY, NORTH CAROLINA
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
For the Year Ended June 30, 2005
EXHIBIT N Utility Governmental
Systems Activities -
Enterprise Internal
Fund Service Funds
OPERATING ACTIVITIES
Cash received from customers $32,835,426 8,971,028
Cash paid for goods and services (12,204,624) (194,178)
Cash paid to or on behalf of employees for services (8,944,686) (499,139)
Cash paid for health and dental insurance claims --- (7,289,016)
Other operating revenues 786,324 ---
   
NET CASH PROVIDED BY OPERATING ACTIVITIES 12,472,441 988,695
NONCAPITAL FINANCING ACTIVITIES
     Transfers In --- ---
     Transfers Out --- ---
     Receipt of Federal Grant 2,251,565 ---
     Receipt of Gas Tax Refunds --- ---
   
NET CASH PROVIDED BY NONCAPITAL FINANCING ACTIVITIES 2,251,565 ---
CAPITAL AND RELATED FINANCING ACTIVITIES
     Bond Proceeds 7,200,528 ---
     Refunded bond payments --- ---
     Bond Issuance Costs Paid (66,653) ---
     Principal Payments on Long-term Debt (5,638,233) ---
     Interest Paid on Long-term Debt (4,711,224) ---
     Water & Sewer Development Fees 6,489,188 ---
     Acquisition and Construction of Capital Assets (20,901,622) (19,309)
     Miscellaneous Reimbursements ---
     Payments on Assessments --- ---
     Proceeds from Sale of Assets 9,764 5,834
   
NET CASH USED IN CAPITAL AND RELATED
           FINANCING ACTIVITIES (17,618,252) (13,475)
INVESTING ACTIVITIES
     Investment Earnings, net of market adjustment 2,637,936 19,564
NET CASH PROVIDED BY INVESTING ACTIVITIES 2,637,936 19,564
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (256,310) 994,784
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR 111,246,156 2,899,584
CASH AND CASH EQUIVALENTS AT END OF YEAR $110,989,846 3,894,368
RECONCILIATION OF OPERATING INCOME TO NET CASH
PROVIDED BY OPERATING ACTIVITIES
  Operating Income $5,432,890 1,152,070
  Adjustments to Reconcile Operating  Income
     to Net Cash Provided by Operating Activities
       Depreciation 6,882,865 63,001
       Changes in Assets and Liabilities - 
         Decrease (Increase) in Accounts Receivable 1,310,147 (49,818)
         Increase in Miscellaneous Receivable (205,999) ---
         Increase in Inventory --- (50,386)
         Decrease in Prepaids --- 58,990
         Increase (Decrease) in Accounts Payable and Accrued Liabilities (964,219) 16,295
         Increase in Compensated Absenses Liability 29,315 3,697
         Decrease in Miscellaneous Liability (675,000) (304,514)
         Increase in Deposits 21,593 ---
         Decrease in Deferred Revenue (145,475) ---
       Miscellaneous Revenue 786,324 99,360
  TOTAL ADJUSTMENTS 7,039,551 (163,375)
NET CASH PROVIDED BY OPERATING ACTIVITIES $12,472,441 988,695
NONCASH TRANSACTIONS
   Contributed Capital Assets ($687,687) (1,647)
   Capitalized Interest and Other Interest Adjustments (703,333) ---
   Loss from Assets Retired 101,708 ---
   Amortization of Deferred Loss on Refunding 65,218 ---
   Amortization of Deferred Bond Expenses 88,637 ---
   Amortization of Bond Premium (10,115) ---
   Developer Fee Credits Used (480,648) ---
   Morrisville Receivable Adjustment --- ---
   Net Change in Net Assets from
         Noncash Transactions
1,626,220 1,647
NET EFFECT OF NONCASH TRANSACTIONS $          --- ---
The accompanying notes are an integral part of these basic financial statements.