Comprehensive Annual Financial Report (CAFR) - Johnson City

CITY OF JOHNSON CITY, TENNESSEENOTES TO THE FINANCIAL STATEMENTS.For the Fiscal Year Ended June 30, 20114. DETAILED NOTES ON ALL FUNDS (CONTINUED):G. Closure and Post Closure CostsState and federal laws and regulations require the City to place a final cover on its landfill sitewhen it stops accepting waste and to perform certain maintenance and monitoring functions forthirty years after closure. The Bowser Ridge Landfill closed during the fiscal year ended June 30,1994 and the Iris Glen Landfill began receiving solid waste during the fiscal year ended June 30,1995. The deferred postclosure costs recorded are for the Bowser Ridge Landfill. Since theLandfill Closed during the year that Governmental Accounting Standards Board Statement Number18, which requires the recording of these costs, went into effect, no investments have been setaside to cover these costs. All costs will be funded by the City government. The City has filedfinancial assurance with the State of Tennessee Department of Environment and Conservation forthe Bowser Ridge Landfill in the form of a contract in lieu of performance bond in the amount of$975,884 for closure and postclosure costs. An estimate of the required amounts was made by anenvironmental auditor for the future years, with consideration given to inflation and other potentialchanges. A separate operation and maintenance contract with Waste Management Systems, Inc. isin effect for the Iris Glen Landfill. The contract states that Waste Management is responsible forthe closure and postclosure costs for Iris Glen. During the year ended June 30, 2011, the City paidWaste Management $2,460,471 for Landfill Services.H. Segment InformationA segment is an identifiable activity (or grouping of activities) reported as or within an enterprisefund or another stand-alone entity that has one or more bonds or other debt instrumentsoutstanding, with a revenue stream pledged in support of that debt. Summary financialinformation as of June 30, 2011, for segments of the Golf Course Fund and Regional Solid Waste(see Note 1.C. for description of services provided) is presented below.100