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Indian River County, Florida NOTES TO FINANCIAL. STATEMENTS Continued Year Ended September 30,1995 NOTE 9 - 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 recognizes the expenses associated with the final closure and post -closure maintenance of the landfill area over the active life of those areas. These costs are recognized in each operating period based on the amount of capacity used during that period, regardless of when cash disbursements are made for these costs. The SWDD annually obtains updated and revised estimates of total future closure and post -closure costs from its consulting engineers. 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 attributable to the currently active landfill area (Segment II) are approximately $1.8 million. These costs will be recognized in future periods as the remaining capacity is filled. This landfill area is expected to close in the year 1997. To date, 72% of the landfill capacity has been filled. 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, 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, and has done so by fulfilling the requirements of the financial test provision of the regulation. At the same time, the SWDD is making annual deposits to a closure cost account to provide for the financing of future closure -related expenditures. The balance in the account, as of September 30, 1995, was $2,709,360. NOTE 10 - DEFINED BENEFIT PENSION PLANS Indian River County participates in the Florida Retirement System and the Firefighters Pension Plan. During the current year the County implemented GASB 27, Accounting for Pensions by State and Local Government Employ. A. Florida Retirement System Plan Description, The County's employees, except certain firefighters, participate in the Florida Retirement System (FRS), a cost-sharing multiple -employer public employee retirement system, administered by the Florida Department of Administration. The FRS is noncontributory for all members; all contributions are made by the employer. The FRS provides retirement and disability benefits, annual cost -of -living adjustments, and death benefits to plan members and beneficiaries. 50