Tag Archives: liability

Impacts of Accounting Regulations – Jan 2019

{Ron Woody, Roane County Executive}

What do Employee Benefits and landfills have in common? Impacts of Accounting Regulations. This article may appear boring at first but it is of utmost importance that we understand the major changes that will impact our county’s financial standing. Roane County signed a contract with the State of Tennessee in lieu of performance bond for $4,565,334 in February 1998. To my knowledge, this was the first acknowledgment of our landfill liability for landfill post-closure care costs. The next year the county had to spend around two million dollars to close the landfill. The liability was real and the money was real. Each year, for the past 20 years, the liability is reexamined and the county still has liability around $200,000. Every year the county spends current property tax money on a landfill that is not generating revenue. This year our cost will be around $100,000.

Health Insurance, due to retirees being eligible to continue to participate now the county has a liability noted on the county’s financial records. Current liability estimates the county general government is $4,284,000, school liability is $12,648,000 split with the state portion $4,939,000, and the county portion $8,709,000. The liability will be an outlay of money.

The State’s November powerpoint begins the county’s process of understanding and addressing the issue and can be found in the OPEB Liability and Local Government Plan in Executive Summary #65a. There will be more to come as the county begins considering and addressing this liability.