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ELK RIVER MUNICIPAL UTILITIES <br /> ELK RIVER,MINNESOTA <br /> NOTES TO FINANCIAL STATEMENTS <br /> DECEMBER 31,2012 AND 2011 <br /> Note 2: DETAILED NOTES ON ALL FUNDS- CONTINUED <br /> Electric and Water fund capital asset activity for the year ended December 31, 2011 was as follows: <br /> Beginning Ending <br /> Balance Increases 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 /> Total capital assets <br /> not being depreciated 700,760 965,332 (1,178,591) 487,501 <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 /> Total capital assets <br /> being depreciated 83,234,306 2,448,731 (84,778) 85,598,259 <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 /> Total 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 $ (1,236,876) $ 49,251,237 <br /> Depreciation expense was charged to functions/programs of the Utilities as follows: <br /> 2012 2011 <br /> Business-type Activities <br /> Water $ 1,028,593 $ 980,197 <br /> Electric 2,099,594 2,041,717 <br /> Total depreciation expense-business-type activities $ 3,128,187 $ 3,021,914 <br /> 40 <br />