| TOWN OF CARY, NORTH CAROLINA | |||
| STATEMENT OF CASH FLOWS | |||
| PROPRIETARY FUNDS | |||
| For the Year Ended June 30, 2006 | |||
| EXHIBIT M | Utility | Governmental | |
| Systems | Activities - | ||
| Enterprise | Internal | ||
| Fund | Service Funds | ||
| OPERATING ACTIVITIES | |||
| Cash received from customers | $35,847,356 | 9,443,619 | |
| Cash paid for goods and services | (12,055,982) | (207,979) | |
| Cash paid to or on behalf of employees for services | (10,032,444) | (535,786) | |
| Cash paid for health and dental insurance claims | --- | (6,787,361) | |
| Other operating revenues | 72,848 | --- | |
| NET CASH PROVIDED BY OPERATING ACTIVITIES | 13,831,777 | 1,912,493 | |
| NONCAPITAL FINANCING ACTIVITIES | |||
| Transfers Out | (149,932) | --- | |
| Morrisville Utility Merger Contributions | 4,290,680 | --- | |
| Receipt of Federal Grant | 588,573 | --- | |
| NET CASH PROVIDED BY NONCAPITAL FINANCING ACTIVITIES | 4,729,321 | --- | |
| CAPITAL AND RELATED FINANCING ACTIVITIES | |||
| Bond Proceeds | 2,424,930 | --- | |
| Bond Issuance Costs Paid | (8,002) | --- | |
| Principal Payments on Long-term Debt | (6,096,084) | --- | |
| Interest Paid on Long-term Debt | (4,569,096) | --- | |
| Morrisville Debt Payment | (362,069) | --- | |
| Water & Sewer Development Fees | 15,636,343 | --- | |
| Morrisville Capacity Charges | 454,690 | --- | |
| Acquisition and Construction of Capital Assets | (17,095,144) | --- | |
| Miscellaneous Reimbursements | 41,050 | --- | |
| Proceeds from Sale of Assets | 110,071 | --- | |
| NET CASH USED IN CAPITAL AND RELATED | |||
| FINANCING ACTIVITIES | (9,463,311) | --- | |
| INVESTING ACTIVITIES | |||
| Investment Earnings, net of market adjustment | 3,628,362 | 31,397 | |
| NET CASH PROVIDED BY INVESTING ACTIVITIES | 3,628,362 | 31,397 | |
| NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 12,726,150 | 1,943,890 | |
| CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR | 110,989,846 | 3,894,368 | |
| CASH AND CASH EQUIVALENTS AT END OF YEAR | $123,715,996 | 5,838,258 | |
| RECONCILIATION OF OPERATING INCOME TO NET CASH | |||
| PROVIDED BY OPERATING ACTIVITIES | |||
| Operating Income | $9,081,717 | 1,740,650 | |
| Adjustments to Reconcile Operating Income | |||
| to Net Cash Provided by Operating Activities | |||
| Depreciation | 7,551,849 | 58,928 | |
| Changes in Assets and Liabilities - | |||
| Increase in Accounts Receivable | (1,770,324) | (104,783) | |
| Increase in Miscellaneous Receivable | (309,936) | --- | |
| Increase in Inventory | --- | (24,188) | |
| Decrease in Accounts Payable and Accrued Liabilities | (18,342) | (34,493) | |
| Increase in Compensated Absenses Liability | 80,603 | 1,356 | |
| Increase in Miscellaneous Liability | 4,175 | 225,099 | |
| Increase in Deposits | 23,254 | 9,000 | |
| Decrease in Deferred Revenue | (884,067) | --- | |
| Miscellaneous Revenue | 72,848 | 40,924 | |
| TOTAL ADJUSTMENTS | 4,750,060 | 171,843 | |
| NET CASH PROVIDED BY OPERATING ACTIVITIES | $13,831,777 | 1,912,493 | |
| NONCASH TRANSACTIONS | |||
| Contributed Capital Assets | ($10,451,348) | --- | |
| Morrisville Utility Merger Contributions | (34,999,037) | --- | |
| Capitalized Interest and Other Interest Adjustments | (945,011) | --- | |
| Amortization of Deferred Loss on Refunding | 65,218 | --- | |
| Amortization of Deferred Bond Expenses | 66,775 | --- | |
| Amortization of Bond Premium | (10,115) | --- | |
| Developer Fee Credits Used | (904,591) | --- | |
| Net Change in Net Assets from Noncash Transactions |
47,178,108 | --- | |
| NET EFFECT OF NONCASH TRANSACTIONS | $ --- | --- | |
| The accompanying notes are an integral part of these basic financial statements. | |||