06/30/1997-FISCAL AUDITS - Laserfiche WebLink

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11. Landfill Closure and Postclosure Care Costs State and Federal laws and regulations require the Town to place a final cover on its landfill site when it stops accepting waste and to perform cer- tain maintenance and monitoring functions at the site for thirty years after closure. Although closure and post-closure care costs will be paid only near or after the date that the landfill stops accepting waste, the Town reports a portion of these closure and post-closure care costs as a liability in the general long-term debt account group in each period based on land- fill capacity used as of each balance sheet date. The $ 1,857,250 reported as landfill closure and post-closure care liability at June 30, 1997 represents that cumulative amount reported to date based on ' the use of 95% of the estimated capacity of landfill. The Town will recognize the remaining estimated cost of closure and post-closure care of$ 97,750 as the remaining estimated capacity is filled. These amounts are based on what it would cost to perform all closure and post-closure care in 1997. The Town expects to close the landfill in fiscal year 1998. The actual life of the landfill may be longer due to increased recycling efforts. Actual cost may be higher ' due to inflation, changes in technology, or changes in regulations. 12. Reserves and Designations of Fund Equity The Town has established "reserves" of fund equity to segregate fund balances which are either not available for expenditure in the future or are legally set aside for a specific future use. Fund "designations," which are ' not legally required segregations, have also been established to indicate tentative plans for future financial utilization. ' The Town reported the following types of reserves and designations at June 30, 1997: Reserved for Endowments - Represents the principal of the nonexpendable trust fund investments. The balance cannot be spent for any purpose; how- ever, it may be invested and the earnings may be spent. Reserved for Expenditures - Represents the amount of fund balance appro- priated to be used for expenditures in the subsequent year budget. ' Reserved for Encumbrances -An account used to segregate that portion of fund balance committed for expenditure of financial resources upon vendor performance. ' 17