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CITY OF LITTLE CANADA, MINNESOTA <br />NOTES TO BASIC FINANCIAL STATEMENTS <br />DECEMBER 31, 2019 <br />NOTE 5 CAPITAL ASSETS <br />A.Changes in Capital Assets Used in Governmental Activities <br />Capital asset activity for the year ended December 31, 2019 was as follows: <br />Beginning Ending <br />Balance Increases Decreases Balance <br />Governmental Activities: <br />Capital assets, not being depreciated: <br />Land $ 3,620,111 $ - $ - $ 3,620,111 <br />Construction in progress 3,203,677 153,524 (470,340) 2,886,861 <br />Total capital assets, not being depreciated 6,823,788 153,524 (470,340) 6,506,972 <br />Capital assets, being depreciated: <br />Buildings and improvements 7,374,815 201,640 - 7,576,455 <br />Machinery and equipment 5,576,190 438,463 (329,957) 5,684,696 <br />Other improvements 616,411 344,318 - 960,729 <br /> Streets 40,116,983 469,001 - 40,585,984 <br />Total capital assets being depreciated 53,684,399 1,453,422 (329,957) 54,807,864 <br />Less accumulated depreciation for: <br />Buildings and improvements (2,344,681) (184,370) - (2,529,051) <br />Machinery and equipment (3,005,907) (272,184) 315,938 (2,962,153) <br />Other improvements (185,916) (27,328) - (213,244) <br />Streets (25,507,890) (1,236,998) - (26,744,888) <br /> Total accumulated depreciation (31,044,394) (1,720,880) 315,938 (32,449,336) <br />Total capital assets, being depreciated, net 22,640,005 (267,458) (14,019) 22,358,528 <br />Governmental activities capital assets, net $29,463,793 $ (113,934) $ (484,359) $ 28,865,500 <br />B.Changes in Capital Assets Used in Business-Type Activities <br />Capital asset activity for the year ended December 31, 2019 was as follows: <br />Beginning Ending <br />Balance Increases Decreases Balance <br />Business-Type Activities: <br />Capital assets, not being depreciated: <br />Permanent easements $ 103,301 $ - $ - <br /> $103,301 <br />Construction in progress 10,030 - (3,965) 6,065 <br />Total capital assets, not being depreciated 113,331 - (3,965) 109,366 <br />Capital assets, being depreciated: <br />Machinery and equipment 732,861 417,755 - 1,150,616 <br />Distribution and collection system 18,527,045 80,187 - 18,607,232 <br />Total capital assets being depreciated 19,259,906 497,942 - 19,757,848 <br />Less accumulated depreciation for: <br />Machinery and equipment (381,473) (24,162) - (405,635) <br />Distribution and collection system (10,881,785) (361,474) - (11,243,259) <br /> Total accumulated depreciation (11,263,258) (385,636) - (11,648,894) <br />Total capital assets, being depreciated, net 7,996,648 112,306 - 8,108,954 <br />Business-type activities capital assets, net $8,109,979 $112,306 $ (3,965) $ 8,218,320 <br />62