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Indian River County, Florida Board of County Commissioners Notes To Financial Statements Year Ended September 30, 2014 NOTE 12 - 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 $3.1 million. These costs will be recognized in future periods as the remaining capacity is filled. The Board'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: Capacity Estimated Used Closing Amount Closure Costs Class I - Segments I and II 61% 2026 $ 7,401,947 Construction and Demolition - Cell I 90% 2026 1,154,866 Post -closure Costs Class I - Segments 1 and II N/A N/A 2,763,435 Construction and Demolition - Cell I N/A N/A 189,488 Total account balance at 9/30/14 $ 11,509,736 1 1 1 1 1 1 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 closure3 and post -closure costs account to provide for the financing of future closure -related expenses. At September 30, 2014, $11,448,484 was on deposit at the Florida Local Government Investment Trust and $61,252 was on deposit in the Board's Operating account. A summary of changes in the landfill closure liability account is as follows: Balance Balance 11 10/1/2013 Deposits Withdrawals 09/30/14 Closure and long-term care costs $ 11,011,736 $ 498,000 $ - $ 11,509,736 3 Of the $11,509,736 liability for closure and long-term care costs, management estimates that no funds 3 will be due and payable within one year. 276