Using Landfill Escrow Accounts

Vince Caliguire - NJDEP

Escrow Funds

• All sanitary landfills operating after January 1982 must establish an Escrow Fund for facility closure/post closure care. Pursuant to N.J.A.C. 7:26-2A.9(g) it is required that for every ton of waste collected, $1.00 is deposited into a DEP Escrow Account.

Three types of Escrow Accounts

• DEP - $1.00 per ton

• Alternative

• BPU

What we do in Escrow…

The Financial Plan

The official plan for your escrow account, sets forth the costs and expenses for the Closure/Post Closure Phases

This is what the escrow unit uses to tell if your on track with spending

Active Landfills using escrow funds should submit a new Financial Plan every two years

The Schedule “C” is the key for the escrow unit

Are you doing what the financial plan dictates?

The Banks and managing the Escrow Fund

• The SEA ( Standard Escrow Agreement) establishes how the Account will be conducted

• NJDEP, the landfill, and the bank act together for accountability of the escrow fund

• The Landfill Owner/Director is the lead to the bank

• Using the Sanitary Landfill Contingency Fund is NOT an Option

• Compound Interest is the key

• Escrow Agent Compensation

Year Deposits Interest 1% Total Year Deposits Interest 2% Total

1 $100,000.00 $1,000.00 $101,000.00 1 $100,000.00 $2,000.00 $102,000.002 $101,000.00 $1,010.00 $102,010.00 2 $102,000.00 $2,040.00 $104,040.003 $102,010.00 $1,020.10 $103,030.10 3 $104,040.00 $2,080.80 $106,120.804 $103,030.10 $1,030.30 $104,060.40 4 $106,120.80 $2,122.42 $108,243.225 $104,060.40 $1,040.60 $105,101.01 5 $108,243.22 $2,164.86 $110,408.086 $105,101.01 $1,051.01 $106,152.02 6 $110,408.08 $2,208.16 $112,616.247 $106,152.02 $1,061.52 $107,213.54 7 $112,616.24 $2,252.32 $114,868.578 $107,213.54 $1,072.14 $108,285.67 8 $114,868.57 $2,297.37 $117,165.949 $108,285.67 $1,082.86 $109,368.53 9 $117,165.94 $2,343.32 $119,509.26

10 $109,368.53 $1,093.69 $110,462.21 10 $119,509.26 $2,390.19 $121,899.4411 $110,462.21 $1,104.62 $111,566.83 11 $121,899.44 $2,437.99 $124,337.4312 $111,566.83 $1,115.67 $112,682.50 12 $124,337.43 $2,486.75 $126,824.1813 $112,682.50 $1,126.83 $113,809.33 13 $126,824.18 $2,536.48 $129,360.6614 $113,809.33 $1,138.09 $114,947.42 14 $129,360.66 $2,587.21 $131,947.8815 $114,947.42 $1,149.47 $116,096.90 15 $131,947.88 $2,638.96 $134,586.8316 $116,096.90 $1,160.97 $117,257.86 16 $134,586.83 $2,691.74 $137,278.5717 $117,257.86 $1,172.58 $118,430.44 17 $137,278.57 $2,745.57 $140,024.1418 $118,430.44 $1,184.30 $119,614.75 18 $140,024.14 $2,800.48 $142,824.6219 $119,614.75 $1,196.15 $120,810.90 19 $142,824.62 $2,856.49 $145,681.1220 $120,810.90 $1,208.11 $122,019.00 20 $145,681.12 $2,913.62 $148,594.7421 $122,019.00 $1,220.19 $123,239.19 21 $148,594.74 $2,971.89 $151,566.6322 $123,239.19 $1,232.39 $124,471.59 22 $151,566.63 $3,031.33 $154,597.9723 $124,471.59 $1,244.72 $125,716.30 23 $154,597.97 $3,091.96 $157,689.9324 $125,716.30 $1,257.16 $126,973.46 24 $157,689.93 $3,153.80 $160,843.7225 $126,973.46 $1,269.73 $128,243.20 25 $160,843.72 $3,216.87 $164,060.6026 $128,243.20 $1,282.43 $129,525.63 26 $164,060.60 $3,281.21 $167,341.8127 $129,525.63 $1,295.26 $130,820.89 27 $167,341.81 $3,346.84 $170,688.6528 $130,820.89 $1,308.21 $132,129.10 28 $170,688.65 $3,413.77 $174,102.4229 $132,129.10 $1,321.29 $133,450.39 29 $174,102.42 $3,482.05 $177,584.4730 $133,450.39 $1,334.50 $134,784.89 30 $177,584.47 $3,551.69 $181,136.16

$3,513,274.04 $4,137,944.08

Get the MOST out of Compound Interest ! $624,670.03

Year Deposits Interest 5% Total

1 $100,000.00 $5,000.00 $105,000.002 $105,000.00 $5,250.00 $110,250.003 $110,250.00 $5,512.50 $115,762.504 $115,762.50 $5,788.13 $121,550.635 $121,550.63 $6,077.53 $127,628.166 $127,628.16 $6,381.41 $134,009.567 $134,009.56 $6,700.48 $140,710.048 $140,710.04 $7,035.50 $147,745.549 $147,745.54 $7,387.28 $155,132.82

10 $155,132.82 $7,756.64 $162,889.4611 $162,889.46 $8,144.47 $171,033.9412 $171,033.94 $8,551.70 $179,585.6313 $179,585.63 $8,979.28 $188,564.9114 $188,564.91 $9,428.25 $197,993.1615 $197,993.16 $9,899.66 $207,892.8216 $207,892.82 $10,394.64 $218,287.4617 $218,287.46 $10,914.37 $229,201.8318 $229,201.83 $11,460.09 $240,661.9219 $240,661.92 $12,033.10 $252,695.0220 $252,695.02 $12,634.75 $265,329.7721 $265,329.77 $13,266.49 $278,596.2622 $278,596.26 $13,929.81 $292,526.0723 $292,526.07 $14,626.30 $307,152.3824 $307,152.38 $15,357.62 $322,509.9925 $322,509.99 $16,125.50 $338,635.4926 $338,635.49 $16,931.77 $355,567.2727 $355,567.27 $17,778.36 $373,345.6328 $373,345.63 $18,667.28 $392,012.9129 $392,012.91 $19,600.65 $411,613.5630 $411,613.56 $20,580.68 $432,194.24

$6,976,078.99

Withdrawing from the escrow Account

• Am I on pace with my Financial Plan?

• Is my documentation correct?

• Are my expenses legitimate?

• Revenue generators and property taxes

• Anticipate the cycle of Expenses

QUESTIONS?