2005 CAFR Part 2 - Laserfiche WebLink

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COUNTY OF HAWAII Notes to the Basic Financial Statements June 30,2005 9. SOLID WASTE LANDFILL CLOSURE AND POSTCLOSURE CARE COSTS Hilo Landfill The County owns and operates a landfill located in the city of Hilo. State and federal laws require the County to place covers on certain landfill sites and to monitor and maintain the sites for thirty years after the facility is closed. Although the closure and postclosure care costs will be paid near and after the date that the landfill stops accepting waste,the County recognizes a portion of the closure and postclosure care costs in each operating period. The liability for these costs is included in the government-wide statement of net assets. The amount recognized each year is based on the landfill capacity used as of the balance sheet date. At June 30,2005,the County recognized a liability of$13,330,000, based on the use of 97%of the estimated capacity of the landfill. During the fiscal year ended June 30,2005,$34,875 was spent on closure of the landfill. The remaining$380,791 in estimated cost of closure and postclosure care will be recognized as the remaining estimated capacity is used. These amounts are based on what it would cost to perform the required closure and postclosure care in 2005. Actual costs at that time may be higher due to inflation,changes in technology,or changes in regulations. The County's permit to operate the landfill expired October 9, 1998. The County filed for an extension which was approved by the state until permitted capacity is reached. In accordance with state statute,the County is allowed to continue operations provided that the County acts consistently with the permit previously granted and the extension application,plans, specifications and all other information contained therein. Kealakehe In October 1993,the County closed its Kealakehe landfill in Kona. Under state and federal requirements,the County would have to monitor and maintain this site for ten years from the closure date. However,the County anticipates monitoring and maintaining the site for thirty years because there is presently a subterranean fire which requires active management. The estimated cost of closure and postclosure is$15,250,000,based on what it would cost to perform the required closure and postclosure care in 2005. Actual costs may be higher due to inflation,changes in technology,or changes in regulations. Through June 30,2005,$6,737,687 was spent on closure and postclosure care of the landfill. The remaining estimated liability of$8,512,000 is included in the government-wide statement of net assets. During the year ended June 30,2005,a total of$124,982 was spent on this landfill. This amount was for the management of the subterranean fire. The County is providing financial assurance for postclosure care and remediation through self insurance as explained below. Pu'uanahulu In May 1993,the County contracted with a private company to construct and operate a new landfill on County land at Pu'uanahulu in West Hawaii. The present contract calls for County employees to perform the daily operations of the landfill,and for the private company to retain the overall management as well as perform all construction work on the landfill cells. Under the terms of the contract,the County has no responsibility for -64-