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TOWN OF ROCKY MOUNTAIN HOUSE
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2022
12.LANDFILL CLOSURE AND POST CLOSURE COSTS
Pursuant to an agreement the Town has accepted partial responsibility for a post closure liability. The Townhas agreed to fund 34.5% of future closure and post closure costs of a landfill.
Alberta environmental law requires closure and post-closure care of landfill sites, which includes final covering and landscaping, pumping of ground water and leachates from the site, and ongoing environmental monitoring, site inspections and maintenance.
The estimated total liability is based on the sum of discounted future cash flows for closure and postclosure activities for 25 years after closure using a discount rate of 4.9% (2021 - 3.46%) and assuming annual inflation of 2.00%.
The accrued liability portion is based on the cumulative capacity used at year end compared the the estimated total landfill capacity. The total capacity of the site is estimated at 2.305 million cubic metres. The estimated used capacity of the landfill site is 2.305 million cubic metres. There is no estimated remaining life in years.
Post closure care is estimated to be required until 2061.
13.DEBT LIMITS
Section 276(2) of the Municipal Government Act requires that debt and debt limits as defined by Alberta Regulation 255/00 for the Townof RockyMountain House be disclosed as follows:
The debt limit is calculated at 1.5 times revenue of the municipality (as defined in Alberta Regulation 255/00) and the debt service limit is calculated at 0.25 times such revenue. Incurring debt beyond these limitations requires approval by the Minister of Municipal Affairs. These thresholds are guidelines used by Alberta Municipal Affairs to identify municipalities that could be at financial risk if further debt is acquired. The calculation taken alone does not represent the financial stability of the municipality. Rather, the financial statements must be interpreted as a whole.
TOWN OF ROCKY MOUNTAIN HOUSE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2022
14.EQUITY IN TANGIBLE CAPITAL ASSETS
15.ACCUMULATED SURPLUS
Accumulated surplus consists of restricted and unrestricted amounts and equity in tangible capital assets as follows:
