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ELK RIVER MUNICIPAL UTILITIES <br />ELK RIVER, MINNESOTA <br />NOTES TO FINANCIAL STATEMENTS <br />DECEMBER 37, 2010 AND 2009 <br />Note 2: DETAILED NOTES ON ALL FUNDS -CONTINUED <br />Electric and Water fund capital asset activity for [he year ended December 31, 2009 was as follows: <br />Capital assets not <br />being depreciated <br />Land <br />Construction in progress <br />Total capital assets <br />not being depreciated <br />Capital assets being depreciated <br />Land improvements <br />Buildings <br />Machinery and equipment <br />Infrastructure <br />Total capital assets <br />being depreciated <br />Less accumulated <br />depreciation for <br />Land improvements <br />Buildings <br />Machinery and equipment <br />Infrastructure <br />Total accumulated <br />depreciation <br />Total capital assets <br />being depreciated, net <br />Business-type activities <br />capital assets, net <br />Beginning Ending <br />Balance Increases Decreases Balance <br /> <br />$ 281,775 $ - $ - $ 281,775 <br />195,605 1,306,708 (1,417,665) 84,648 <br /> <br />477,380 1,306,708 (1,417,665) 366,423 <br /> <br />63,147 - - 63,147 <br />3,463,486 43,139 - 3,506,625 <br />4,118,344 192,331 (266,697) 4,043,978 <br />73,274,840 1,250,133 - 74,524,973 <br />80,919,817 1,485,603 (266,697) 82,138,723 <br />(36,672) (2,526) - (39,198) <br />(994,556) (110,405) - (1,104,961) <br />(2,879,523) (271,593) 266,697 (2,884,419) <br />(24,150,382) (2,699,263) - (26,849,645) <br />(28,061,133) (3,083,787) 266,697 (30,878,223) <br />52,858,684 (1,598,184) - 51,260,500 <br />$ 53,336,064 $ (291,476) $ (1,417,665) $ 51,626,923 <br />Depreciation expense was charged to functions/programs of the Utilities as follows: <br />2010 2009 <br />Business-type Activities <br />Water <br />Electric <br />Total depreciation expense -business-type activities <br />$ 955,323 $ 956,993 <br />2,062,942 2,126,794 <br />$ 3,018,265 $ 3,083.787 <br />-40- <br />