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HomeMy WebLinkAboutLandfill Closure Post Closure 6-5-17Page 1 Administrative Policies and Procedures Title: Financial Policies Resolution No.: Section: Landfill Closure & Post-Closure Date of Version: June 2017 SECTION I - POLICIES A. The City will maintain reserves for landfill cell replacement, landfill closure, and landfill post-closure and will restrict the necessary assets to ensure the funds are available to meet future needs. B. Quarterly transfers will be made from the Landfill Fund to the Landfill Replacement Reserves Fund, Landfill Closure Reserve Fund and Landfill Post-Closure Reserve Fund based on the amount of tonnage received at the landfill for the quarter to ensure that the reserves are being funded on an ongoing basis that is based upon actual consumption. C. Annually, the Resource Management Division will prepare a closure report summarizing the tonnage deposited during the fiscal year, the landfill’s permitted capacity, the landfill’s unpermitted capacity, and the percentage of the landfill that is filled. D. Annually, the Resource Management Division will hire a firm to prepare two sets of costs estimates for closure and post-closure costs. One estimate in accordance with IDNR rules and regulations and one in accordance with generally accepted accounting principles (GAAP). E. Restricted cash balances and restricted net positions in the Landfill Closure Reserve Fund and Landfill Post-Closure Reserve Fund will be equal to the amount legally required by Iowa Code to be held in reserves. F. This policy shall be reviewed annually to ensure compliance with applicable State and Federal laws and Generally Accepted Accounting Principles (GAAP) Page 2 SECTION II - PROCEDURES A. Quarterly Solid Waste Fee Schedule & Retained Fees Report 1. Quarterly, the Resource Management Division will prepare the report and send to the Accounting Division. 2. The Accounting Division enters the report into Munis for payment and remits the check and report to the IDNR prior to the due date. B. Quarterly Entries 1. The Senior Accountant-Accounting will prepare three transfer entries based on the amount of tonnage received at the landfill for the quarter that was reported on the Quarterly Solid Waste Fee Schedule & Retained Fees Report. a. $6.00 per ton will be transferred to reserved cash from the Landfill Fund to the Landfill Replacement Reserves Fund. b. $0.75 per ton will be transferred to reserved cash from the Landfill Fund to the Landfill Closure Reserve Fund. c. $0.25 per ton will be transferred to reserved cash from the Landfill Fund to the Landfill Post-Closure Reserve Fund. 2. The Senior Accountant-Accounting will prepare an entry for the retained fee amount reported on the Quarterly Solid Waste Fee Schedule & Retained Fees Report. C. Landfill Financial Assurance Report 1. Annually, the Finance Director will prepare the Landfill Financial Assurance Report and submit it to the IDNR. D. Annual Entries 1. Annually, the Accounting Division will adjust the restricted cash balances and restricted net positions in the Landfill Closure Reserve Fund and Landfill Post-Closure Reserve Fund to the amount legally required by Iowa Code to be held in reserves. 2. Annually, the Accounting Division will record the closure and post- closure costs liability based on the percentage of the landfill that is full and the cost estimates prepared using GAAP.