Bonner County weighs $150,000 cash‑flow match, capital fund and $40,000 survey to advance airport projects

Bonner County officials and airport director Dave Schuck discussed steps to accelerate development and maintenance at Sandpoint and Priest River airports, including hiring a surveyor for new lease lots at Sandpoint, creating a capital improvement account to earn interest, and increasing the county match to cover upfront costs for FAA grants.

Director Dave Schuck told the Board that Sandpoint leased two lots during the past year "we did lease 2 more lots, this past year," and that he expects the county could lease six additional lots in the southeast corner once the parcels are surveyed and legally described. He estimated the survey work at "about $40,000" and said the six developed lots would produce roughly "$60,000 a year once we have those leased." Schuck also said the individual lease payments for new lots would likely be "in the neighborhood of $4,000 a year, give or take, maybe $5,000 a year," while noting that the bigger cost to tenants is construction of hangars, which he described as "probably all of them, million dollar investments, give or take, in the buildings."

The discussion placed a strong emphasis on timing and cash flow. Schuck explained that FAA grants are reimbursement grants: the county pays costs up front and is reimbursed later, which creates a need for interim cash. He said land acquisition requires substantial upfront work—surveys, appraisals and purchase‑and‑sale negotiations—before FAA reimbursement, and that the county has used much of its current county‑match cash flow this year. "Right now I can't enter any more invoices against County Match because we've used, most of it, 80% of it," he said. To address that, Schuck proposed increasing the county match cash‑flow line to $150,000 for fiscal 2026 so the county can pay preliminary invoices and be reimbursed later.

Commissioners and staff pushed for clearer project lists and guardrails. Multiple board members urged that any increase in match funding be tied to a documented multi‑year plan and be project‑specific so future boards and the public can see why funds were set aside. One commissioner said the county should budget a worst‑case 10% match for FAA grants (Schuck noted the state typically contributes 5–7.5% and the county’s usual obligation has been about 2.5–5%) but make the purpose of any increase explicit for the record.

The county also discussed creating a capital improvement account that would sit as a designated airport balance in the general fund and earn interest until funds are needed. Schuck said the airports have a long‑term capital improvement plan that totals about "$19,000,000" of projects for both airports, with a county portion of roughly "$2,000,000 over the next 7 years." He told the board the single largest county match could be about "$600,000 when they do the runway," and said a sinking‑fund approach could reduce the budget shock when large matches come due.

On revenue and cost drivers, Schuck noted some near‑term savings and changed costs: a reduction in ground‑based navigation aids decreased a previously large maintenance contract from roughly $30,000 to about "$6,300," and two lots that leased at "$2,700 a year" represent revenue that did not exist in 2025. He also flagged variable expense lines such as fuel and equipment repairs and said he may be able to fund the survey this fiscal year if there are no unforeseen equipment failures. When asked the probability of completing the Sandpoint survey in fiscal 2025, the director said, "We are 80% that we could do it."

The board discussed equipment failures and deferred maintenance as additional fiscal risks. Members pointed to a past major repair of the airports’ snowblower—Schuck said the repair cost about $50,000 and that a new machine could cost about $275,000—as an example of an unplanned, high‑cost item that can derail an operating budget. Commissioners asked staff to examine options such as departmental sinking funds or a countywide contingency for catastrophic equipment failures, while noting such reserves compete with other priorities in a zero‑sum budget.

No formal motions or votes were taken at the workshop. Commissioners asked the airport director to return with a clearer two‑year forecast of expected grantable projects and timing, a prioritized capital improvement/sinking‑fund plan, and refined cost estimates for the Sandpoint lot survey (including whether the survey work could be phased). Those materials are intended to inform the final fiscal 2026 budget and the board’s decision on whether to increase the county match this year.

The board adjourned without action; staff and commissioners said they expect to revisit the items during the regular budget cycle and requested documentation tying any proposed match increases to specific projects and timelines.