TOWN OF CARY, NORTH CAROLINA
UTILITY SYSTEM OPERATIONS SUB-FUND
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND NET ASSETS
BUDGET AND ACTUAL (NON-GAAP)
For the Year Ended June 30, 2006
With Comparative Totals For the Year Ended June 30, 2005
Schedule 10
2006 2005
Variance
Positive
Budget Actual (Negative) Actual
REVENUES
  Operating Revenues
    Charges for Services  
      Water $17,946,032 18,937,272 991,240 16,555,711
      Sewer 17,651,801 17,955,104 303,303 14,895,238
TOTAL CHARGES FOR SERVICES 35,597,833 36,892,376 1,294,543 31,450,949
   Other Operating Revenues
     Connection Fees 312,761 548,700 235,939 315,205
     Inspection Fees 356,972 1,086,455 729,483 369,220
     Reconnection Fees 40,491 61,394 20,903 46,014
     Pretreatment Program Fees 145,000 143,305 (1,695) 106,653
     Miscellaneous Revenues 185,066 200,954 15,888 187,944
TOTAL OTHER OPERATING REVENUES 1,040,290 2,040,808 1,000,518 1,025,036
TOTAL OPERATING REVENUES 36,638,123 38,933,184 2,295,061 32,475,985
NON-OPERATING REVENUES
    Investment Earnings 749,983 1,526,185 776,202 1,019,707
      Market Adjustment --- (106,536) (106,536) (114,941)
    Investment Earnings, net 749,983 1,419,649 669,666 904,766
TOTAL REVENUES 37,388,106 40,352,833 2,964,727 33,380,751
EXPENDITURES
ADMINISTRATIVE 
  Utility Administration      
    Personnel Services 678,181 664,090 14,091 591,942
    Operations & Maintenance 122,217 95,152 27,065 111,110
          TOTAL 800,398 759,242 41,156 703,052
  Customer Accounting
    Personnel Services 1,111,898 1,052,670 59,228 959,128
    Operations & Maintenance 380,670 332,732 47,938 259,928
    Capital Outlays 47,779 33,562 14,217 ---
          TOTAL 1,540,347 1,418,964 121,383 1,219,056
   Administrative costs paid to General Fund 1,620,531 1,620,531 --- 1,573,208
TOTAL ADMINISTRATIVE  3,961,276 3,798,737 162,539 3,495,316
WATER CONSERVATION
    Personnel Services $220,033 159,566 60,467 231,801
    Operations & Maintenance 82,898 53,364 29,534 25,058
    Capital Outlays 19,000 13,457 5,543 ---
       
TOTAL WATER CONSERVATION 321,931 226,387 95,544 256,859
PRETREATMENT
    Personnel Services 241,908 231,714 10,194 214,697
    Operations & Maintenance 100,211 27,212 72,999 12,930
    Capital Outlays 20,900 13,207 7,693 ---
       
TOTAL PRETREATMENT 363,019 272,133 90,886 227,627
FIELD OPERATIONS
 Water Distribution and Sewage Collection
    Personnel Services 3,332,364 3,262,679 69,685 2,882,221
    Operations & Maintenance 1,173,678 1,027,933 145,745 993,833
    Capital Outlays 578,638 355,169 223,469 377,773
       
TOTAL FIELD OPERATIONS 5,084,680 4,645,781 438,899 4,253,827
UTILITY SYSTEMS MAINTENANCE
 Water and Sewer Pumping 
    Personnel Services 1,026,401 911,474 114,927 841,131
    Operations & Maintenance 872,468 778,384 94,084 682,499
    Capital Outlays 153,780 179,042 (25,262) ---
       
TOTAL UTILITY SYSTEMS MAINTENANCE 2,052,649 1,868,900 183,749 1,523,630
WATER RECLAMATION FACILITIES
     North Cary Water Reclamation Facility
       Personnel Services 1,096,985 1,082,407 14,578 1,025,059
       Operations & Maintenance 4,353,267 3,586,318 766,949 2,346,584
       Capital Outlays 13,500 17,210 (3,710) 14,812
          TOTAL 5,463,752 4,685,935 777,817 3,386,455
    South Cary Water Reclamation Facility
      Personnel Services 1,316,932 1,259,044 57,888 1,021,285
      Operations & Maintenance 1,684,120 1,514,205 169,915 1,422,965
      Capital Outlays 18,000 30,203 (12,203) 6,161
          TOTAL 3,019,052 2,803,452 215,600 2,450,411
TOTAL WATER RECLAMATION
    FACILITIES 8,482,804 7,489,387 993,417 5,836,866
WATER TREATMENT PLANT
    Personnel Services $1,486,016 1,453,298 32,718 1,385,203
    Operations & Maintenance 3,019,251 3,049,018 (29,767) 3,398,601
    Capital Outlays --- --- --- 30,064
    Reimbursement from Apex (912,002) (876,090) (35,912) (734,539)
         TOTAL WATER TREATMENT PLANT 3,593,265 3,626,226 (32,961) 4,079,329
DEBT SERVICE
  Long-term Debt Principal Payment 6,650,301 6,096,084 554,217 5,638,233
  Interest Expense 5,862,450 4,569,096 1,293,354 4,711,224
         TOTAL CARY DEBT SERVICE 12,512,751 10,665,180 1,847,571 10,349,457
  Morrisville Debt Payment 339,775 339,775 --- ---
         TOTAL DEBT SERVICE 12,852,526 11,004,955 1,847,571 10,349,457
REVERSION (89,438) --- (89,438) ---
TOTAL EXPENDITURES 36,622,712 32,932,506 3,690,206 30,022,911
      Revenues Over Expenditures 765,394 7,420,327 6,654,933 3,357,840
OTHER REVENUES (EXPENDITURES)
 Transfers Out, net
    Transfer to General Fund, net (149,932) (149,932) --- ---
    Transfer to Water Project Sub-Fund (868,539) (868,539) --- (900,000)
  Bond Issuance Costs & Expenses (800,000) (8,002) 791,998 (66,653)
  Bond Proceeds 700,000 --- (700,000) ---
  Proceeds from Sale of Assets 20,000 7,771 (12,229) 9,764
  Miscellaneous Revenues 31,330 20,231 (11,099) 16,780
  Reserve for Future Capital Expenditures
  Reversion (PUT ABOVE IN EXP)
  Appropriation from Fund Balance 301,747 --- (301,747) ---
      TOTAL OTHER EXPENDITURES (765,394) (998,471) (233,077) (940,109)
      Revenues Over Expenditures
        (Including Other Expenditures),
        Before Special Item $          --- 6,421,856 6,421,856 2,417,731
SPECIAL ITEM - Morrisville Merger 4,381,668 ---
      Revenues Over Expenditures
        (Including Other Expenditures) 10,803,524 2,417,731
   
ADJUSTMENT TO ACCRUAL BASIS
  Add (Deduct)
Capital Outlays $643,459 421,895
Decrease in Compensated Absences Liability (80,604) (29,314)
Loss on Disposal of Assets    --- (101,706)
Issuance of long-term debt --- ---
Long-term Debt Principal Payment 6,096,084 5,638,233
Morrisville Debt Payment 339,775 ---
Morrisville Jordan Capacity Payment 22,295 ---
Bond Premium Amortization 10,115 10,115
Bond Discount Amortization (4,048) (4,048)
Deferred Bond Issue Costs (66,775) (88,637)
Deferred Loss on Refunding (65,218) (65,218)
Interest adjustments to be hidden
Capitalized Interest 949,059 707,381
(Increase) Decrease Debt Interest Payable (153,727) 181,694
Depreciation (7,551,849) (6,882,865)
Sewer Capacity Charges (454,690) (827,198)
Fee Credits Used
Fee Credit Adjustment 5,000 ---
Contributed Assets 10,446,348 687,687
Jordan Capacity Liability Payment 100,264 97,132
Internal Service Funds Internal (Profit)Loss 309,936 205,999
Construction-in-Progress write-off --- (9,582)
Water Contract Payment --- 675,000
Miscellaneous --- 374
       Change in Accounting Estimate due to increase
            of Capital Asset Threshold ---
                      Total Adjustments before Special Item 10,545,424 616,942
                           SPECIAL ITEM - Morrisville Merger 34,999,037 ---
                      Total Accrual Adjustment 45,544,461 616,942
CHANGE IN NET ASSETS 56,347,985 3,034,673
NET ASSETS - Beginning of Year 180,207,000 173,529,420
Reclassification Between Utility Sub-Funds 28,846,163 3,642,907
NET ASSETS - End of Year $265,401,148 180,207,000