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Stonegate Village Metropolitan District <br />NOTES TO FINANCIAL STATEMENTS <br />December 31, 2006 <br />Note 3 -Capital Assets <br />Capital asset activity for the year ended December 31, 2006 was as follows: <br /> Beginning Ending <br /> Balance Increases Decreases Balance <br />Governmental activities: <br />Capital assets not being <br />depreciated <br />Street -landscaping $ 3,386,545 $ - $ - $ 3,386,545 <br />Landscaping 201,525 - 201,525 <br />Total capital assets not <br />being depreciated 3,588,070 - - 3,588,070 <br />Capital assets being <br />depreciated <br />Recreation center 2,422,978 - - 2,422,978 <br />Other recreation <br />equipment 256,122 - - 256,122 <br />Total capital assets <br />being depreciated 2,679,100 - 2,679, ] 00 <br />Less accumulated <br />depreciation 79,579 93,572 - 889,151 <br />Net capital assets <br />governmental <br />activities 5.471,592 93 2 - 5.378.019 <br />Business-type activities: <br />Capital assets not being <br />depreciated <br />Water rights $ 2,963,385 $ - $ - $ 2,963,385 <br />Capital assets being <br />Depreciated <br />Water system 20,448,741 757,688 - 21,206,429 <br />Sewer system 17,524,138 209 - 17,524,347 <br />Total capital assets <br />being depreciated 37,972,879 757,897 - 38,730,776 <br />Less accumulated <br />depreciation 12,890,685 1,213,851 - 14,104,536 <br />Net capital assets <br />business-type <br />activities $ 28,045.579 455 $ - $ 27 589 625 <br />17 <br />