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Indian River County, Florida <br />Notes To Financial Statements <br />Year Ended September 30, 2012 <br />NOTE 14 - PROVISION FOR CLOSURE COSTS <br />Current regulations of the U.S. Environmental Protection Agency (EPA) and the Florida Department of <br />Environmental Protection (FDEP) require the Solid Waste Disposal District (SWDD) to place a final <br />cover on closed landfill areas, and to maintain those areas for up to thirty years after closure. The <br />SWDD annually obtains updated and revised estimates of total future closure and post -closure costs <br />from its consulting engineers. The SWDD recognizes the expenses associated with the final closure and <br />post -closure maintenance of the landfill areas over the active life of those areas. The provision for <br />closure costs reported in the financial statements as operating expense represents the portion of these <br />estimated future outlays which are allocable to the current year based on the amount of capacity used. <br />The total unrecognized closure and post -closure costs are approximately $3.6 million. These costs will <br />be recognized in future periods as the remaining capacity is filled. The County's policy is to fund 100% <br />of the current year's allocation (based upon the consulting engineers' report) of both closure and post - <br />closure care. <br />Required closure and post -closure sub -accounts: <br />Capacity Estimated <br />Used Closing <br />Amount <br />Closure Costs <br />Class I - Segments I and II 58% 2030 $ 6,801,947 <br />Construction and Demolition - Cell I 89% 2017 1,118,866 <br />Post -closure Costs <br />Class I - Segments I and II N/A N/A 2,413,435 <br />Construction and Demolition - Cell I N/A N/A 179,488 <br />Total account balance at 9/30/12: $ 10,513,736 <br />All amounts recognized are based on what it would cost to perform all closure and post -closure <br />functions in current dollars. Actual costs may be different due to inflation, deflation, changes in <br />technology, or changes in laws and regulations. The SWDD is required by FDEP to annually show proof <br />of ability to finance closure and post -closure costs. The SWDD is making annual deposits to a closure <br />and post -closure cost escrow account to provide for the financing of future closure -related expenses. At <br />September 30, 2012, $10,442,551 was on deposit at the Florida Local Government Investment Trust <br />and $71,185 was on deposit in the County's Operating account. <br />A summary of changes in the landfill closure liability account is as follows: <br />Balance Balance <br />10/01/11 Deposits Withdrawals 09/30/12 <br />Closure and long-term care costs $ 10,016,236 $ 497,500 $ - $10,513,736 <br />Of the $10,513,736 liability for closure and long-term care costs, management estimates that no funds <br />will be due and payable within one year. <br />84 <br />