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PINEWOOD SPRINGS WATER DISTRICT <br /> NOTES TO FINANCIAL STATEMENTS <br /> December 31, 2011 and 2010 <br /> NOTE 3—PROPERTY, PLANT AND EQUIPMENT <br /> Capital asset activity for the year ended December 31 was as follows: <br /> Balance Balance <br /> 12/31/2010 Increases Decreases 12/31/2011 <br /> Not depreciated <br /> Land and water $ 302,545 $ - $ - $ 302,545 <br /> Construction in progress <br /> (Note 4) 25,000 17,550 - 42,550 <br /> $ 327,545 $ 17,550 $ - $ 345,095 <br /> Other capital assets <br /> Reservoir $ 4,022,719 $ - $ - $ 4,022,719 <br /> Water system 1,163,651 - (58,670) 1,104,981 <br /> Filtration plant 361,751 - - 361,751 <br /> Equipment 123,866 9,734 (90,493) 43,107 <br /> Vehicles 19,751 28,851 (19,751) 28,851 <br /> 5,691,738 38,585 (168,914) 5,561,409 <br /> Accumulated depreciation <br /> Reservoir (228,433) (94,582) - (323,015) <br /> Water system (701,789) (28,562) 58,670 (671,681) <br /> Filtration plant (152,113) (11,862) - (163,975) <br /> Equipment (123,714) (1,084) 90,431 (34,367) <br /> Vehicles (17,609) (6,889) 19,751 (4,747) <br /> (1,223,658) (142,979) 168,852 (1,197,785) <br /> Net other capital assets $ 4,468,080 $ (104,394) $ (62) $ 4,363,624 <br /> Depreciation expense totaled $142,979 and $137,869 for the years ended December 31, <br /> 2011 and 2010,respectively. <br /> NOTE 4 —CONSTRUCTION IN PROGRESS <br /> Construction in progress includes an amount of$25,000 related to the consulting research <br /> done on constructing a water line to Crescent Lake. No future commitments to complete this line <br /> have been made as of the date of the Auditors' Report. An additional amount of $17,550 was <br /> expended in 2012 for the aeration project. <br /> Page 19 <br />