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CITY OF LINO LAKES, MINNESOTA <br />STATEMENT OF CASH FLOWS - PROPRIETARY FUNDS <br />Year Ended December 31, 2008 <br />Total <br />Water Sewer 2008 <br />Cash flows from operating activities: <br />Cash receipts from customers 5 1,054,529 5 1,463,346 $ 2,517,875 <br />Cash paid to suppliers (364,840) (698,478) (1,063,318) <br />Cash paid to employees (182, 823 (164,632) (347,455) <br />Net cash flows from operating activities 506,866 600,236 1,107,102 <br />Cash flows from noncapital financing activities: <br />Net transfers 32,768 32,768 <br />Net cash flows from noncapital financing activities 32,768 32,768 <br />Cash flows fruit capital and related financing activities: <br />Principal paid on revenue bonds (325,000) - (325,000) <br />Collection of special assessments 20,676 421 21,097 <br />Interest and paying agent fees on revenue bonds (62,283) - (62,283) <br />Acquisition of capital assets (12,213) (99,212) (111,425) <br />Net cash flows from (used) by capital and related <br />financing activities (378,820) (98,791) (477,611) <br />Cash flows from investing activities: <br />Interest on investments 90,992 183,506 274,498 <br />Net increase (decrease) in cash and cash equivalents 219,038 717,719 936,757 <br />Cash and cash equivalents - January 1 2,745,671 4,892,219 7,637,890 <br />Cash and cash equivalents - December 31 $ 2,964,709 $ 5,609,938 5 8,574,647 <br />Reconciliation of operating income to net cash <br />from operating activities: <br />Operating income $ 99,450 $ 184,150 $ 283,600 <br />Adjustments to reconcile operating income to <br />net cash flows from operating activities: <br />Depreciation 411,992 432,366 844,358 <br />Change in assets and liabilities: <br />Decrease (increase) in receivables (3,964) (8,747) (12,711) <br />Decrease (increase) in prepaid items (2,658) (8,417) (11,075) <br />increase (decrease) in payables 2,046 884 2,930 <br />Net cash flows from operating activities $ 506,866 $ 600,236 5 1,107,162 <br />- Water lines in the amount of $551,965 were contributed to the Water Fund in 2008. <br />- Sewer lines in the amount of S409,469 were contributed to the Sewer Fund in 2008. <br />The accompanying notes are an integral part of these basic financial statement <br />