Sarasota County Comprehensive Annual Financial Report 2020

Sarasota County, Florida Notes to Financial Statements September 30, 2020 Retirement of revenue bonds are for current year principal payments and amortization of bond premiums. Retirements of commercial paper are for current year principal payments. Retirement of notes payable are for current year principal payments. Compensated absences and Landfill closure are typically liquidated by the individual fund to which the liability is directly associated. NOTE 8. LEASE OBLIGATIONS Operating Leases The County leases transportation equipment, office space, office equipment and uniforms under operating leases. These leases expire or are cancelable within the next fiscal year. In most cases the County expects that in the normal course of operations, these leases will be renewed or replaced by other leases. Total rental expenditures for all operating leases within governmental activities for the year ended September 30, 2020 were approximately $1,580,519. Total rental expenditures for all operating leases within business- type activities for the year ended September 30, 2020 were approximately $1,189,441. NOTE 9. 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 $34,025,954 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 73.79 percent of the estimated capacity of the Central County landfill. The System will recognize the remaining estimated cost of care of $7,039,797 as the remaining estimated 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 2020. The System closed the Bee Ridge landfill in the year 1998 and expects to close the Central County landfill during fiscal year 2044, leaving 23 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 year end. NOTE 10. 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. 124