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Cabarrus County, North Carolina Notes to the Financial Statements For the Year Ended June 30, 2010 G. Closure and Postclosure Care Cost - Cabarrus County Landfill Facility Federal and state laws and regulations require Cabarrus County to place a final cover on its landfill facility when it stops accepting waste and to perform certain monitoring functions at the site for thirty years after closure. Although closure and postclosure care costs are typically paid near or after the date that the landfill stops accepting waste, the County reports an annual capital reserve operating expense as an estimate of these closure and postclosure care costs. Actual Costs may be higher due to inflation, changes in technology, or changes in regulations. The $3,992,266 reported as the landfill's closure and postclosure liability at June 30, 2010 represents a cumulative amount reported to -date. This amount is based on what it would cost to perform all closure and postclosure care in Fiscal Year 2010. The change in the closure /postclosure liability from FY 2009 to FY 2010 resulted in a net decrease of $761,346. The decrease is due to the use of funds for the closure of the C &D over MSW portion of the Landfill. This area reached its full capacity and is now in the closure phase. In addition, a transfer in the amount of $957,917 was made to the closure /postclosure liability for 2010. This transfer was made to offset the closure expenses in order to rebuild the liability back to what is required by the NC DENR. The County's liability is set aside for the closure and postclosure of the following: • The Municipal Solid Waste (MSW) reached capacity in 1997 and was covered in 1998. • An expansion area that sits on the top of the MSW site was added in 1998 to accept construction and demolition waste (C &D). This expansion area has reached capacity and is in the process of being closed. • An additional C &D expansion area was opened in Fiscal Year 2006 and is expected to reach full capacity this fiscal year. • A new C &D expansion area was approved by the Board of Commissioners in September 2008 to continue to provide services to the community. This is set to begin construction in Fiscal Year 2011. Cabarrus County has met the requirements of the local government financial assurance test that is one option under state and federal laws and regulations that aids in determining if a unit and secure and financially able to meet the necessary closure and postclosure care requirements as of each balance sheet date. Governments that utilize the local government financial assurance test allow them to remain exempt from a set contribution schedule. H. Deferred / Unearned Revenues The balance in deferred revenue on the fund statements and unearned revenues on the government -wide statements at year -end is composed of the following elements: Prepaid taxes not yet earned (General) Taxes receivable, net (General) Ambulance receivable, net (General) Total Deferred Revenue Unearned Revenue $ - $ 507,625 3,362,532 - 804,123 - $ 4,166,655 $ 507,625 I. Leases 1. Capital Leases The County has entered into agreements which qualify as capital leases under the provisions of Financial Accounting Standards Board Statement No. 13 "Accounting for Leases" and subsequent amendments. 53 G -2 Page 541