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ELK RIVER MUNICIPAL UTILITIES <br />ELK RIVER, MINNESOTA <br />NOTES TO FINANCIAL STATEMENTS <br />DECEMBER 31, 201 I AND 2010 <br />Note 2: DETAILED NOTES ON ALL FUNDS-CONTINUED <br />B. Capital assets <br />Electric and Water fund capital asset activity forthe year ended December 31, 201 I was as follows: <br />Beginning <br />Balance Increases <br />Ending <br />Decreases Balance <br />Capital assets not <br />being depreciated <br />Land $ 281,775 $ - $ - $ 281,775 <br />Construction in progress 418,985 965,332 (1,178,591) 205,726 <br /> <br />Total capital assets <br />not being depreciated 700,760 965,332 (1,178,591) 487,501 <br /> <br />Capital assets being depreciated <br />Land improvements 63,147 - - 63,147 <br />Buildings 3,506,625 - - 3,506,625 <br />Machinery and equipment 4,080,888 462,816 (84,778) 4,458,926 <br />Infrastructure 75,583,646 1,985,915 - 77,569,561 <br /> <br />Total capital assets <br />being depreciated 83,234,306 2,448,731 (84,778) 85,598,259 <br /> <br />Less accumulated <br />depreciation for <br />Land improvements (41,723) (2,526) - (44,249) <br />Buildings (1,217,471) (111,784) - (1,329,255) <br />Machinery and equipment (3,052,945) (234,072) 26,493 (3,260,524) <br />Infrastructure (29,526,963) (2,673,532) - (32,200,495) <br />Tolal accumulated <br />depreciation (33,839,102) (3,021,914) 26,493 (36,834,523) <br />Total capital assets <br />being depreciated, net 49,395,204 (573,183) (58,285) 48,763,736 <br />Business-type activities <br />capital assets, net $ 50,095,964 $ 392,149 $ (1,236.8761 $ 49.251,237 <br />39 <br />