TOWN OF CARY, NORTH CAROLINA
UTILITY SYSTEMS ENTERPRISE FUND
SUB-FUND COMBINING STATEMENT OF REVENUES, EXPENSES,
AND CHANGES IN FUND NET ASSETS
For the Year Ended June 30, 2006
With Comparative Totals For the Year Ended June 30, 2005
Schedule 9
	Utility System		Water		Sewer		Utility System		June 30,
	Operations		Projects		Projects		Capital Reserve		2006		2005
OPERATING REVENUES
Charges for Services	$36,437,686		---		---		---		36,437,686		30,623,751
Other Operating Revenues	2,040,808		---		---		---		2,040,808		1,025,410
Prop Oper Rev	---		---		---		---		---		---
Prop Oper Rev	---		---		---		---		---		---
Prop Oper Rev	---		---		---		---		---		---
TOTAL OPERATING REVENUES	38,478,494		---		---		---		38,478,494		31,649,161
OPERATING EXPENSES
Administrative	3,629,103		---		---		---		3,629,103		2,534,424
Water Conservation	211,662		---		---		---		211,662		252,157
Pretreatment	261,831		---		---		---		261,831		228,737
Field Operations	4,191,560		---		---		---		4,191,560		3,878,449
Utility Systems Maintenance	1,676,954		---		---		---		1,676,954		1,526,612
Water Reclamation Facilities	7,398,475		---		---		---		7,398,475		5,823,678
Cary/Apex Water Treatment Plant	3,562,616		---		---		---		3,562,616		4,068,267
Miscellaneous Utility System Projects	---		623,327		289,400		---		912,727		1,021,082
Depreciation	7,551,849		---		---		---		7,551,849		6,882,865
Prop Oper Exp	---		---		---		---		---		---
Prop Oper Exp	---		---		---		---		---		---
TOTAL OPERATING EXPENSES	28,484,050		623,327		289,400		---		29,396,777		26,216,271
OPERATING INCOME (LOSS)	9,994,444		(623,327)		(289,400)		---		9,081,717		5,432,890
NONOPERATING REVENUES (EXPENSES)
Water and Sewer Development Fees	---		---		---		16,540,559		16,540,559		6,969,836
Investment Earnings, net of market adjustment	1,429,764		11,973		---		2,522,659		3,964,396		2,761,625
Bond Proceeds	---		---		---		---		---		---
Restricted Intergovernmental Revenue	---		382,979		205,594		---		588,573		2,251,565
Miscellaneous Revenue	25,231		---		---		52,616		77,847		29,530
Reimbursements	---		---		41,050		---		41,050		47,479
Prop Nonoper Rev	---		---		---		---		---		---
Interest Expense, net of amount capitalized	(3,777,812)		---		---		---		(3,777,812)		(3,826,197)
Bond Service Expense	(74,777)		---		---		---		(74,777)		(155,290)
Bond Refunding Loss	(65,218)		---		---		---		(65,218)		(65,218)
Developer Fee Credits Issued	---		---		---		---		---		---
Gain on Assets Retired	7,771		---		---		102,300		110,071		(91,942)
Morrisville Agreement	---		---		---		---		---		---
Prop Nonoper Exp	---		---		---		---		---		---
Prop Nonoper Exp	---		---		---		---		---		---
TOTAL NONOPERATING REVENUE (EXPENSE)	(2,455,041)		394,952		246,644		19,218,134		17,404,689		7,921,388
INCOME (LOSS) BEFORE TRANSFERS AND CAPITAL
CONTRIBUTIONS	7,539,403		(228,375)		(42,756)		19,218,134		26,486,406		13,354,278
Capital Contributions	10,446,348		---		---		---		10,446,348		687,687
Transfers In	---		---		---		---		---		---
Transfers Out	(149,932)		---		---		---		(149,932)		---
Transfers Between Sub-Funds	(868,539)		2,475,747		6,300,344		(7,907,552)		---		---
Other (Prop)	---		---		---		---		---		---
Special items	---		---		---		---		---		---
Extraordinary items	---		---		---		---		---		---
CHANGE IN NET ASSETS, Before Special Item	16,967,280		2,247,372		6,257,588		11,310,582		36,782,822		14,041,965
SPECIAL ITEM - Morrisville Merger	39,380,705		---		---		---		39,380,705		---
CHANGE IN NET ASSETS, After Special Item	56,347,985		2,247,372		6,257,588		11,310,582		76,163,527		14,041,965
TOTAL NET ASSETS - Beginning of Year	180,207,000		27,068,095		55,067,746		35,165,037		297,507,878		283,465,913
Reclassifications:
Reclassification of Long-term Debt	---		---				---		---		---
Reclassification of Capital Assets Transferred from
Construction-in-Progress	28,846,163		(4,756,231)		(24,089,932)		---		---		---
TOTAL NET ASSETS - End of Year	$265,401,148		24,559,236		37,235,402		46,475,619		373,671,405		297,507,878