Sarasota County, Florida Notes to Financial Statements September 30, 2023 NOTE 8. LANDFILL CLOSURE AND POSTCLOSURE CARE COST State and federal laws and regulations require the Solid Waste System to place a final cover on its Bee Ridge and Central County landfill sites when it stops accepting waste and to perform certain maintenance and monitoring functions at each 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 System reports a portion of these closure and post closure costs each balance sheet date. The $25,236,381 reported as landfill closure and post closure care liability at year end, represents the cumulative amount reported to date based on the use of one hundred percent of the estimated capacity of the Bee Ridge landfill and 34.38 percent of the estimated capacity of the Central County landfill. The large reduction in liability is the result of 20.8 million cubic yards being made available in Fiscal Year 2023, substantially increasing available capacity of the Central County landfill. The System will recognize the remaining estimated cost of care of $52,890,946 as the remaining capacity at the Central County landfill is filled. These amounts are based on what it would cost to perform all closure and post closure care in 2023. The System closed the Bee Ridge landfill in the year 1998 and expects to close the Central County landfill during fiscal year 2044, leaving 20 years of estimated remaining life. These amounts are estimates and the actual costs are subject to change resulting from inflation, deflation, technology, or changes in applicable laws or regulations. The System expects that future inflation costs will be paid from interest earnings on annual contributions to a fund to finance closure and post closure care. However, if interest earnings are inadequate or additional post closure care requirements are determined; these costs may need to be covered by charges to future landfill users or from future tax revenue. The System is required by state and federal laws and regulations to make annual contributions to a fund to finance closure and post closure care. The System uses the financial test to demonstrate financial assurance, as specified on Subpart H of 40 CFR Part 264, as adopted by reference in Rule 62-701.630, Florida Administrative Code. The System was in compliance with these requirements at fiscal year end. NOTE 9. RISK MANAGEMENT- The County is exposed to various risks of loss related to tort; theft of, damage to, and destruction of assets; errors and omissions; injuries to employees; and natural disasters. The County has established various self-insurance internal service funds. These funds include risk management of general and automotive liability, employee group health insurance activities and workers’ compensation. The County is self-insured under the sovereign immunity up to a maximum of $200,000 per person/$300,000 per occurrence for claims against the County involving negligence, including automobile and general liability. Negligence claims in excess of the statutory limits set in Section 768.28, Florida Statutes, can only be recovered through an act of the State of Florida Legislature. The County carries specific workers’ compensation excess insurance for claims exceeding $500,000. Employee medical benefit claims exceeding $700,000 per covered participant are covered with unlimited excess insurance. Reserves have been established for both claims that have been reported but not paid and for claims incurred but not reported. Reserves for the risk management fund and the workers’ compensation fund are based on an actuarial valuation as of fiscal year-end, include allocated loss adjustment expenses and are recorded at present value at the expected confidence level. Reserves for general liability, automobile liability, employment practices and workers’ compensation are based on present value factors ranging from 0.93-1.00, 0.94-1.00, 0.93-1.00, and 0.73-0.89, respectively. Reserves for the medical benefits fund are based on industry standards of two months of current year claims expense. On October 1, 2018, the Sarasota County, Florida Sheriff (“Sheriff”) established its own liability program for risk management and workers’ compensation claims in accordance with applicable regulations. The Sheriff has the sole obligation and responsibility for funding the payment of claims occurring after September 30, 2018 as required under the law. Also, effective January 1, 2019, the Sheriff established their own plans that include risk 138
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