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 $3,047,638 reported as landfill closure
and postclosure care liability at December 31, 1997, represents
the cumulative amount reported to date based on the use of 75.27
percent of the estimated capacity of the landfill. The County
will recognize the remaining estimated cost of closure and postclosure
care of $1,001,362 as the remaining estimated capacity is filled.
These amounts are based on what it would cost to perform all
closure and postclosure care in 1997. 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 eight 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 1997 are as follows:
| Equipment and Facilities Cost: | |
| Near date landfill stops accepting waste | |
| Installation of gas monitoring and venting systems | $ 174,000 |
| During closure/postclosure | |
| Expected renewals and replacements of stormwater erosion | |
| control facilities ($15,500 per year) | 465,000 |
| Monitoring well replacement (2 @ $5,000) | 10,000 |
| Final Cover Cost: | |
| Final cover material and labor, including vegetative cover | 600,000 |
| Postclosure Care Cost: | |
| Inspection and maintenance of final cover ($50,000 per year) | $ 1,500,000 |
| Groundwater monitoring ($30,000 per year) | 900,000 |
| Gas monitoring ($5,000 per year) | 150,000 |
| Projected remediation cost | 250,000 |
| Estimated cost in 1997 dollars of closure and postclosure care | |
| applicable to entire landfill | $ 4,049,000 |
Calculation of accrued liability and annual expense
amounts are as follows:
| Depletion Allowances | |
| Total estimated capacity | 16,309,159 |
| Cumulative capacity used to date | 12,275,726 |
| Percent depleted | 75.27% |
| Amount Previously | Current Year | |||
| $4,049,000 X 12,275,726 | Recognized | Expense | ||
| 16,309,159 | - | 2,884,330 | = | 163,308 |