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Indian River County, Florida Notes To Financial Statements Year Ended September 30, 2010 NOTE 14 - PROVISION FOR CLOSURE COSTS Current regulations of the U.S. Environmental Protection Agency (EPA) and the Florida Department of Environmental Protection (FDEP) require the Solid Waste Disposal District (SWDD) to place a final cover on closed landfill areas, and to maintain those areas for up to thirty years after closure. The SWDD annually obtains updated and revised estimates of total future closure and post -closure costs from its consulting engineers. The SWDD recognizes the expenses associated with the final closure and post -closure maintenance of the landfill areas over the active life of those areas. The provision for closure costs reported in the financial statements as operating expense represents the portion of these estimated future outlays which are allocable to the current year based on the amount of capacity used. The total unrecognized closure and post -closure costs are approximately $4.2 million. These costs will be recognized in future periods as the remaining capacity is filled. The County's policy is to fund 100% of the current year's allocation (based upon the consulting engineers' report) of both closure and post - closure care. Required closure and post -closure sub -accounts: All amounts recognized are based on what it would cost to perform all closure and post -closure functions in current dollars. Actual costs may be different due to inflation, deflation, changes in technology, or changes in laws and regulations. The SWDD is required by FDEP to annually show proof of ability to finance closure and post -closure costs. The SWDD is making annual deposits to a closure and post -closure cost escrow account to provide for the financing of future closure -related expenses. At September 30, 2010, $9,466,618 was on deposit at the Florida Local Government Investment Trust and $52,118 was on deposit in the County's Operating account. A summary of changes in the landfill closure liability account is as follows: Balance Balance 10/01/09 Deposits Withdrawals 09/30/10 Closure and long-term care costs 10,427.975 $495,402 $1,404,641 $9,518,736 Of the $9,518,736 liability for closure and long-term care costs, management estimates that no funds will be due and payable within one year. :. Capacity Estimated Used Closing Amount Closure Costs Class I - Segments I and II 54% 2027 $ 4,570,693 Construction and Demolition - Cell 1 89% 2015 1,083,866 Post -closure Costs Class I - Segments I and II N/A N/A 3,694,689 Construction and Demolition - Cell I N/A N/A 169,488 Total account balance at 9/30/10: $ 9,518,736 All amounts recognized are based on what it would cost to perform all closure and post -closure functions in current dollars. Actual costs may be different due to inflation, deflation, changes in technology, or changes in laws and regulations. The SWDD is required by FDEP to annually show proof of ability to finance closure and post -closure costs. The SWDD is making annual deposits to a closure and post -closure cost escrow account to provide for the financing of future closure -related expenses. At September 30, 2010, $9,466,618 was on deposit at the Florida Local Government Investment Trust and $52,118 was on deposit in the County's Operating account. A summary of changes in the landfill closure liability account is as follows: Balance Balance 10/01/09 Deposits Withdrawals 09/30/10 Closure and long-term care costs 10,427.975 $495,402 $1,404,641 $9,518,736 Of the $9,518,736 liability for closure and long-term care costs, management estimates that no funds will be due and payable within one year. :.