TOWN OF CARY, NORTH CAROLINA
STATEMENT OF NET ASSETS
PROPRIETARY FUNDS
June 30, 2006	Utility		Governmental
	Systems		Activities -
EXHIBIT K	Enterprise		Internal
	Fund		Service Funds
ASSETS
Current Assets
Equity in Pooled Cash and Investments	$122,524,890		5,838,258
Accrued Interest on Investments	986,506		8,233
Accounts Receivable, net of allowance for         doubtful accounts	11,053,192		159,566
Due from Other Funds	---		---
Inventories	---		79,084
Miscellaneous Prepayment	---		---
Restricted Cash - Unspent Debt Proceeds	---		---
Restricted Cash - Customer Deposits	---		---
Equity in Pooled Cash and Investments-Restricted	1,191,106		---
Asset	---		---
Asset	---		---
TOTAL CURRENT ASSETS	135,755,694		6,085,141
Non-Current Assets
Deferred Bond Expenses	920,953		---
Long-term Notes Receivable	---		---
Assessments Receivable	---		---
Noncurrent asset (PF only)	---		---
TOTAL NONCURRENT ASSETS	920,953		---
Capital Assets
Land, Land Improvements and Construction-in-Progress	37,938,807		---
Other Capital Assets, Net of Accumulated Depreciation	324,113,847		1,301,072
Water and Sewer Distribution System-NOT USED	---		---
Building, Equipment and Vehicles-NOT USED	---		---
Construction-in-Progress-NOT USED	---		---
Total Capital Assets, net	362,052,654		1,301,072
TOTAL NON-CURRENT ASSETS	362,973,607		1,301,072
TOTAL ASSETS	498,729,301		7,386,213
LIABILITIES AND NET ASSETS
Current liabilities
Accounts Payable and Accrued Liabilities	3,330,815		85,005
Compensated Absences	---		---
Due to Other Funds	(170,103)		---
Debt Payable	6,897,063		---
Accrued Debt Interest Payable	1,234,361		---
Retainage Payable	577,028		---
Deferred Revenues	1,065,812		---
Purchased Capacity Liability	103,498		---
Developer Fee Credits	755,366		---
Liability	---		---
Liability	---		---
TOTAL CURRENT LIABILITIES	13,793,840		85,005
Non-Current liabilities
Compensated Absences	621,852		34,292
Deposits	1,155,140		9,000
Deferred Revenue - Capacity Charges	---		---
Debt Payable, net of deferred loss on refunding	100,887,297		---
Installment Purchase Payable	---		---
State Revolving Loan Payable	---		---
Deferred Bond Premium	158,060		---
Purchased Capacity Liability	569,747		---
Developer Fee Credits	3,823,654		---
Claims Incurred But Not Reported	---		835,301
Morrisville Merger Debt	3,187,686		---
Miscellaneous	860,620		---
Noncurrent liability (PF only)	---		---
Noncurrent liability (PF only)	---		---
TOTAL NON-CURRENT LIABILITIES	111,264,056		878,593
TOTAL LIABILITIES	125,057,896		963,598
NET ASSETS
Invested in Capital Assets, Net of Related Debt	$249,016,029		1,301,072
Restricted for Unspent Grant Proceeds	---		---
Restricted for Deposits Held	1,155,140		---
Net Assets - restricted (PF)	---		---
Unrestricted Net Assets	123,500,236		5,121,543
TOTAL NET ASSETS	373,671,405		6,422,615
TOTAL LIABILITIES AND NET ASSETS	$498,729,301		7,386,213
The accompanying notes are an integral part of these basic financial statements.