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 $3,245,994 reported as landfill closure and postclosure care liability at December 31, 1998, represents the cumulative amount reported to date based on the use of 77.15 percent of the estimated capacity of the landfill. The County will recognize the remaining estimated cost of closure and postclosure care of $961,139 as the remaining estimated capacity is filled. These amounts are based on what it would cost to perform all closure and postclosure care in 1998. 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 seven 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 1998 are as follows:
| Equipment and Facilities Cost: | |
| $ 7,140 | |
| 30,967 | |
| Final Cover Cost: | |
| 2,951,963 | |
| 129,374 | |
| 312,054 | |
| Postclosure Care Cost: | |
| 406,950 | |
| 347,310 | |
| 13,470 | |
| 7,905 | |
| Estimated cost in 1998 dollars of closure and postclosure care | |
| applicable to entire landfill | $ 4,207,133 |
Calculation of accrued liability and annual expense amounts are as follows:
|
Depletion Allowances |
|
|
Total estimated capacity |
16,309,159 |
|
Cumulative capacity used to date |
12,583,255 |
|
Percent depleted |
77.15% |
|
Amount Previously |
Current Year |
|||
|
$4,207,133 X 12,583,255 |
Recognized |
Expense |
||
|
16,309,159 |
- |
3,047,638 |
= |
198,356 |
Back to 1998 Financial Report