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NOTE 4 — CAPITAL ASSETS (CONTINUED) <br />B. Changes in Capital Assets Used in Business -Type Activities <br />C. Depreciation Expense by Function <br />Balance — <br />Beginning <br />of Year <br />Capital assets, not depreciated <br />Land $ 100,000 $ — $ — $ 100,000 <br />Construction in progress 9,298,436 470,113 (559,017) 9,209,532 <br />Capital assets, depreciated <br />Buildings and structures 2,509,688 — — 2,509,688 <br />Improvements other than buildings 9,497,064 86,024 — 9,583,088 <br />Machinery and equipment 210,563 343,357 (9,597) 544,323 <br />Water and sewer lines 35,496,946 852,586 — 36,349,532 <br />Total capital assets 57,112,697 1,752,080 (568,614) 58,296,163 <br />Less accumulated depreciation on <br />Buildings and structures (502,100) (50,296) — (552,396) <br />Improvements other than buildings (967,216) (207,675) — (1,174,891) <br />Machinery and equipment (102,846) (27,274) 9,597 (120,523) <br />Water and sewer lines (6,367,477) (725,644) — (7,093,121) <br />Total accumulated depreciation (7,939,639) (1,010,889) 9,597 (8,940,931) <br />Net capital assets $ 49,173,058 $ 741,191 $ (559,017) <br />Governmental activities <br />General government $ 684,615 <br />Public safety 330,071 <br />Highways and streets 933,856 <br />Culture and recreation 185,028 <br />Total depreciation expense -- governmental activities $ 2,133,570 <br />Bus ines s -type activities <br />Water Utility $ 439,445 <br />Sewer Utility 362,556 <br />Street Light Utility 27,578 <br />Storm Water Utility 181,310 <br />Total depreciation expense — business -type activities $ 1,010,889 <br />-39- <br />Additions <br />Balance <br />Deletions End of Year <br />$ 49,355,232 <br />