NOTE 8 - CLOSURE AND POSTCLOSURE CARE COST OF LANDFILL

LARIMER COUNTY, COLORADO
NOTES TO FINANCIAL STATEMENTS
Year Ended December 31, 1999

NOTE 8 - CLOSURE AND POSTCLOSURE CARE COST OF LANDFILL:

State and federal laws and regulations require the County to place a final cover on its landfill site when it stops accepting waste and to perform certain maintenance and monitoring functions at the site for thirty years after closure. Although closure and postclosure care costs will be paid only near or after the date that the landfill stops accepting waste, the County reports a portion of these closure and postclosure care costs as an operating expense in each period based on landfill capacity used as of each balance sheet date. The $3,517,716 reported as landfill closure and postclosure care liability at December 31, 1999, represents the cumulative amount reported to date based on the use of 81.57 percent of the estimated capacity of the landfill. The County will recognize the remaining estimated cost of closure and postclosure care of $794,569 as the remaining estimated capacity is filled. These amounts are based on what it would cost to perform all closure and postclosure care in 1999. Actual cost may be higher due to inflation, changes in technology or changes in regulations. It is estimated that the County landfill has a remaining useful life of six years. The County is required by state and federal laws and regulations to demonstrate financial assurance. The County is in compliance with these requirements through the local government financial test.

Estimated total current cost of closure and postclosure care applicable to entire landfill for 1999 are as follows:

Equipment and Facilities Cost:
Near date landfill stops accepting waste
Installation of gas monitoring and venting systems	$ 7,319
During closure/postclosure
Expected renewals and replacements of
stormwater erosion control facilities	31,741

Final Cover Cost:
Final cover material and labor, including vegetative cover	3,025,762
Engineering Management	132,608
Miscellaneous	319,855

Postclosure Care Cost:
Inspection and maintenance of final cover ($13,904 per year)	417,120
Groundwater monitoring ($11,866 per year)	355,980
Gas monitoring ($460 per year)	13,800
Groundwater monitoring well replacement ($270 per year)	8,100

Estimated cost in 1999 dollars of closure and postclosure care
applicable to entire landfill	$ 4,312,285

Calculation of accrued liability and annual expense amounts are as follows:

	Depletion Allowances
Total estimated capacity	16,309,159
Cumulative capacity used to date	13,304,080
Percent depleted	81.57%

		Amount Previously		Current Year
$4,312,285 X 13,304,080		Recognized		Expense
16,309,159	-	3,245,994	=	271,722

Back to 1999 Financial Report