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CITY OF LINO LAKES, MINNESOTA <br />STATEMENT OF CASH FLOWS - PROPRIETARY FUNDS <br />Year Ended December 31, 2005 <br />('ash flows from operating activities: <br />Cash receipts from customcrs <br />('ash paid to suppliers <br />('ash paid to employees <br />Net cash flows from operating activities <br />Cash flows from noncapital financing activities: <br />Transfer from capital project funds <br />Net cash tlows from noncapital financing activities <br />Water <br />Totals <br />Sewer 2005 <br />S 1 ,027,184 $ 1 ,347,529 S 2,374,713 <br />(221,978) (686,732) (908,710) <br />(162,685) (161,657) (324,342) <br />642,521 499,140 1,141,661 <br />304,195 304,195 <br />304,195 304,195 <br />Cash flows from capital and related financing activities: <br />Principal paid on revenue bonds (280,000) - (280,000) <br />Collection of special assessments 34,989 303 35,292 <br />Interest and paying agent fees on revenue bonds (132,852) (132,852) <br />Acquisition of capital assets (356,081) (2,794) (358,875) <br />Net cash flows from capital and related financing activities (733,944) (2,491) (736,435) <br />Cash flows from investing activities: <br />Interest on investments 36,105 84,205 120,310 <br />Net increase in cash and cash equivalents 248,877 580,854 829,731 <br />Cash and cash equivalents - January 1 1,510,649 2,917,210 4,427,859 <br />Cash and cash equivalents - December 31 S 1,759,526 S 3,498,064 S 5,257,590 <br />Reconciliation of operating income (loss) to net cash <br />from operating activities: <br />Operating income (loss) S 287,435 S 143,934 S 431,369 <br />Adjustments to reconcile operating income to <br />net cash flows from operating activities: <br />Depreciation 338,451 390,628 729,079 <br />Change in assets and liabilities: <br />Decrease (increase) in receivables (3,991) (14,230) (18,221) <br />Decrease (increase) in prepaid items 293 172 465 <br />Increase (decrease) in payables 20,333 (21,364) (1,031) <br />Net cash flows from operating activities S 642,521 c 499,140 S 1,141,661 <br />- Water lines in the amount of S771,360 were contributed to the Water Fund in 2005. <br />- Sewer lines in the amount of S948,170 were contributed to the Sewer Fund in 2005. <br />The accompanying notes are an integral part of these basic financial sta,cnnents. <br />