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Credit Component Table IV - 7 provides a summary of revenue sources used to fund capital additions and replacements , as well as operations . As presented , the two largest funding sources are the service assessment and the construction and demolition debris disposal charges . In Table IV - 7 , the average revenue figures over the past six years along with their percentage of the total revenues are shown . Total revenues available for SWDD capital and operating expenditures average approximately $ 10 . 8 million per year, while operating expenditures average $ 8 . 8 million per year, leaving an average of $ 2 . 0 million per year for capital expenditures . It should be noted that the operating expenditures of the District have been increasing, which has been reducing the amount of funding available for capital expenditures . While the percentage of revenues available for capital expenditures (total revenues less operating costs) in relation to total revenues averaged approximately 18 . 6 percent over the past six years , no revenues were budgeted for capital expenditures in FY 04/05 , which indicates a policy decision of reducing capital purchases funded with the District ' s revenues . In addition , the County has been reducing the assessment fee rate and , as a policy , is interested in further reductions . This combination of reducing the assessment fee rate along with increasing operating expenses is likely to further reduce the funding available for capital expenditures . This reduction makes it necessary for the County to explore other funding sources, such as solid waste impact fees . New growth, which will pay impact fees , will also benefit from lower assessment fees . Finally, Florida Department of Environmental Protection (FDEP) regulations require that the owner or operator of a solid waste management facility establish escrow accounts , or alternative financial mechanisms , during the useful life of the facility to accumulate funds for its eventual closure and long -term care . Annual closure account balances are required , each of which is to equal an annually revised estimated total closure amount times the percentage of the landfill capacity that is consumed at the end of the respective accounting period . According to IRC representatives , the SWDD currently has a fund balance of $30 million to comply with FDEP regulations , and the County needs to retain or increase this balance in the future . It is important to note that this fund balance is not an unreserved fund balance . A portion of it must be set aside or reserved for future cell closures and long term maintenance to comply with FDEP regulations . Tindale -Oliver & Associates , Inc . Indian River County May 2005 IV- 13 Impact Fee Study