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CITY OF LINO LAKES, MINNESOTA <br />STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET ASSETS - PROPRIETARY FUNDS <br />Year Ended December 31, 2006 <br />Water <br />Totals <br />Sewer 2006 <br />Operating revenue: <br />Charges for services $ 1,107,107 $ 1,371,832 $ 2,478,939 <br />Hook -up charges 26,321 19,870 46,191 <br />Water meter sales 32,783 32,783 <br />Other operating revenue 8,961 - 8,961 <br />Total operating revenue 1,175,172 1,391,702 2,566,874 <br />Operating expenses: <br />Personal services 164,548 151,643 316,191 <br />Materials and supplies 219,842 23,184 243,026 <br />Contractual services 41,310 77,895 119,205 <br />MCES sewer charges - 537,824 537,824 <br />Depreciation 353,349 404,200 757,549 <br />Utilities 53,078 25,111 78,189 <br />Other 15,230 8,266 23,496 <br />Total operating expenses 847,357 1,228,123 2,075,480 <br />Net income from operations 327,815 163,579 491,394 <br />Other income (expense): <br />Investment earnings 86,890 166,897 253,787 <br />Special assessments 11,171 109 11,280 <br />Bond interest (127,254) (127,254) <br />Paying agent fees (1,964) (1,964) <br />Total other income (expense) (31,157) 167,006 135,849 <br />Net income before contributions and transfers 296,658 330,585 627,243 <br />Contributions and transfers: <br />Contributions from private sources 635,765 888,586 1,524,351 <br />Transfer in 299,725 299,725 <br />Total contributions and transfers 935,490 888,586 1,824,076 <br />Net income 1,232,148 1,219,171 2,451,319 <br />Net Assets - January 1 14,000,428 19,914,742 33,915,170 <br />Net Assets - December 31 $ 15,232,576 $ 21,133,913 $ 36,366,489 <br />The accompanying notes are an integral part of these basic financial statements. <br />IV -10 <br />