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RM <br />33 <br />Comparative balance sheets for FYI 999 and FY2011, the last full year the landfill was under <br />Town of Chapel Hill administration and the latest available financial information from Orange <br />County, are shown in Attachment 1. Please note that due to changes in the government financial <br />reporting model that went into effect in 2003, some of the assets and liabilities are categorized <br />differently. Landfill operations are accounted for as an enterprise fund, so that in addition to <br />financial assets and current liabilities that would be presented in a typical governmental fund, the <br />landfill fund reporting also includes economic assets such as land and capital equipment as well <br />as long -term liabilities such as the non - current portion of debt. Also, as an enterprise fund, <br />depreciation is recorded on fund fixed assets. <br />The fund has grown significantly over the comparison period. Cash and cash equivalents <br />increased from $4.4 million to $12.9 million. This is similar to the increase in the post closure <br />liability, which is the amount set -aside to pay for the closure of the landfill and 30 years of <br />subsequent monitoring and maintenance. The landfill closure and post closure care liability, <br />which is discussed further below, increased from $2.3 million to $11.9 million. Despite the <br />overall growth in the fund, the net assets — the theoretical value of the fund's assets after all <br />liabilities are paid off— decreased from $6.9 million to $3.5 million, due to the increase in <br />liabilities, including OPEB which was not recognized in 1999. <br />Landfill closure and post closure care costs <br />Landfills are financially responsible for the costs of closing the site at the end of its useful life <br />and the cost to monitor and maintain the site for 30 years after closure. These costs are <br />recognized over the useful life of the landfill and are comprised of the following three elements: <br />• The cost equipment and facilities that will be acquired for the purpose of post closure <br />care and monitoring. <br />• The cost of applying the final cover. <br />• The cost of post closure care and monitoring. <br />Estimated costs are adjusted annually to reflect inflation and any changes in technology or <br />regulations and are calculated based on current costs. An annual expense related to closure and <br />post closure costs is calculated using a formula that recognizes the amount of capacity used <br />during the period and any adjustments to prior costs. The accumulated costs are shown as a <br />liability in the Landfill's Statement of Net Assets. <br />As of June 30, 2011 the estimated cost of closure and post closure costs are shown as <br />$11,966,601 in the County's financial statements. The calculations for this cost estimate are <br />