Comprehensive Annual Financial Report - Cobb County

COBB COUNTY, GEORGIA
NOTES TO FINANCIAL STATEMENTS
September 30, 2007
Note 21.
Capital Contributions
As reported in Note 1, beginning October 1, 2001, with the implementation of GASB 33, the County
now recognizes capital contributions as non-operating revenues in the Proprietary Funds Statement of
Revenues, Expenses and Changes in Fund Net Assets.
Capital Contributions recognized as revenue in the Proprietary Funds for the fiscal year ending
September 30, 2007 are presented below:
Source:
Developers $19,045,684
Grants 13,467,517
Donations 5,467,110
Total Capital Contributions $37,980,311
Note 22.
Closure and Postclosure Care Costs
State and federal laws and regulations require that the County place a final cover on its landfills when
closed and perform certain maintenance and monitoring functions at the landfill sites for thirty years
after closure. In addition to operating expenses related to current activities of the landfills, an
expense provision and related liability are being recognized based on the future postclosure care costs
that are being incurred now that the landfills are no longer accepting waste. Two landfill sites
reached capacity on September 6, 2001. The third landfill site reached capacity on September 8,
2002. As of September 30, 2007, Cobb County has incurred a liability totaling $27,059,236.
This liability is recorded in the Solid Waste Disposal Fund and represents the amount of costs
reported to date based on 100% of the original landfill capacity. The estimated remaining time for
the landfills to be monitored and maintained is 25 years. In accordance with GASB 18, the estimated
total current cost is based on the amount that would be paid if all equipment, facilities and services
required to close, monitor and maintain the landfills were acquired as of September 30, 2007.
However, the actual cost may be higher due to inflation, changes in technology or changes in landfill
laws and regulations.
The County will fund the closure and postclosure care costs with subsidies from the General Fund.
As of September 30, 2007, no amount of assets have been restricted for the payment of closure and
postclosure care costs. The remaining portion of anticipated future inflation costs and additional
costs that might arise from changes in postclosure requirements (due to changes in technology or
more rigorous environmental regulations, for example) may need to be covered by charges to future
landfill users, taxpayers, or both.
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