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CITY OF GEM LAKE, MINNESOTA <br />NOTES TO BASIC FINANCIAL STATEMENTS <br />DECEMBER 31, 2018 <br /> <br /> <br /> <br />(24) <br /> <br />NOTE 2 DEPOSITS AND INVESTMENTS (CONTINUED) <br />B. Investments (Continued) <br />Fair Value Measurements (Continued) <br />The levels of investments at December 31, 2018 are as follows: <br /> <br />Investment Type Level 1 Level 2 Level 3 Total <br />Negotiable Certificates of Deposit with Maturities <br />at Purchase of Greater Than 1 Year -$ 560,177$ -$ 560,177$ <br />Investments Measured at Amortized Cost 7,685 <br />567,862$ <br /> <br />NOTE 3 CAPITAL ASSETS <br />Capital asset activity for the year ended December 31, 2018 was as follows: <br /> <br />Beginning Ending <br /> Balance Increases Decreases Transfers Balance <br />Governmental Activities <br />Capital Assets Not Being Depreciated: <br />Construction in Progress 19,964$ 541,567$ -$ -$ 561,531$ <br />Capital Assets Being Depreciated: <br />Buildings 902,232 - - 902,232 <br />Office Equipment 12,895 - - 12,895 <br />Infrastructure 1,131,144 381,748 (418,356) 1,094,536 <br />Total Capital Assets Being Depreciated 2,046,271 381,748 - (418,356) 2,009,663 <br />Total Capital Assets 2,066,235 923,315 - (418,356) 2,571,194 <br />Accumulated Depreciation: <br />Buildings (222,074) (22,497) - (244,571) <br />Office Equipment (12,471) (314) - (12,785) <br />Infrastructure (518,479) (46,413) - 12,551 (552,341) <br />Total Accumulated Depreciation (753,024) (69,224) - 12,551 (809,697) <br />Net Capital Assets - Capital Activities 1,313,211$ 854,091$ -$ (405,805)$ 1,761,497$ <br /> <br /> <br />Depreciation expense was charged to the governmental functions as follows: <br /> <br />General Government 22,811$ <br />Public Works 46,413 <br />Total Depreciation - Governmental Activities 69,224$