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Mexico council approves contract of obligation with Missouri Department of Natural Resources for closed landfill
Summary
The City of Mexico authorized the city manager to sign a contract of obligation with the Missouri Department of Natural Resources to cover estimated post-closure costs for the sanitary landfill closed in 1998; staff reported the post-closure fund exceeds the current estimate.
Mexico City Council voted to authorize the city manager to sign a contract of obligation with the Missouri Department of Natural Resources (MDNR) covering estimated post-closure expenditures for the sanitary landfill the city closed in 1998.
The contract references a "potential postclosure cost estimate of $86,942.24," Roger Haines, staff member, told the council. Haines said the city’s post-closure fund held $183,211.35 as of Sept. 30, 2024, leaving a remaining funding margin against the estimate.
Bruce Schlegel, staff member, opened the item by noting the landfill closure and the city’s ongoing obligation under state oversight. "In 1998, the city closed its landfill. And as a part of that, the city was required to make sure they had funds set aside for post closure expenses. And that was required by the Department of Natural Resources," Schlegel said. Haines added that the city would submit the executed contract along with a financial instrument to MDNR and that the city’s financial position made obtaining an insurance policy naming MDNR as additional insured unnecessary at this time.
Haines described the funding history: the city phased in a rate adjustment decades ago to build the post-closure reserve, later removed the per-customer charge once the fund balance was sufficient, and continues to submit a financial assurance instrument to MDNR. He said the department’s formula for assessed risk has been decreasing while the city’s fund balance has increased. Haines also said the MDNR instrument could result in MDNR pursuing contract remedies—up to intercepting state revenue—if the city lacked sufficient assurance.
Councilmembers moved and voted to pass bill number 2025-8, authorizing the contract of obligation for estimated post-closure expenditures for the Manatee Mexico sanitary landfill, permit number 010073. The motion passed (vote recorded as passage during the meeting).
The item’s immediate fiscal details cited by staff were the $86,942.24 post-closure estimate and the $183,211.35 fund balance as of Sept. 30, 2024. Staff also stated the city has eight years remaining under the MDNR schedule for post-closure obligations.
The council did not direct staff to spend down the post-closure fund; a councilmember asked whether part of the fund could be used for other purposes, and staff replied that money could be spent but that the fund’s level affects whether MDNR would require an insurance policy.
The resolution instructs the city manager to execute the contract of obligation with MDNR; the contract and permit number are recorded in the meeting materials.
