Bonner County Ambulance District schedules budget hearing, discusses $800,000 TAN and bank account transition

The Bonner County Ambulance Service District board agreed to schedule a standalone public budget hearing for Aug. 20 and discussed seeking a Tax Anticipation Note (TAN) availability of about $800,000 to cover cash shortfalls while the district establishes independent banking and legal arrangements.

The board’s discussion matters because the ambulance district is separating financial operations from Bonner County, creating new recurring costs (insurance, legal, bookkeeping) and changing how revenue and payroll timing affect cash flow. Commissioners and staff emphasized needing concrete data to justify TAN sizing and a clear plan for opening independent bank accounts so billing and federal payers are not disrupted.

Chief Jeff Lindsay, who presented the budget materials, said Bonner County EMS needs to set a date and format for the public budget hearing and preferred a standalone meeting rather than combining it with the county budget hearing. "I don't have a date time set because that was something I wanted to discuss with the commissioners before I did that," Lindsay said. Commissioners agreed to use the district’s regular meeting on Aug. 20 for the public hearing and asked staff to publish appropriate notices.

Lindsay outlined estimated TAN costs and options. He said the district’s prior TAN preparation used out-of-area counsel that totaled roughly $11,000 (about 19 hours at about $600 per hour). With the district’s new outside counsel, Lindsay estimated a comparable drafting effort would cost about $4,000 at a lower hourly rate. He told the board he planned to request availability of $800,000 for the next TAN, saying, "I'm saying I would want no more than $800,000 because we are paying 0.175 on that amount we borrowed." The board discussed a range of possible availability levels and told Lindsay to return with supporting cash-flow figures.

County staff and the clerk cautioned that exact TAN sizing should wait until July receipts are posted so the district can account for any one-time levy or foregone amounts that affect year-end balances. The clerk said monthly and seasonal timing of levy receipts and payroll drives how much short-term borrowing is needed and recommended returning to the board with objective staffing and cash projections to justify the TAN request.

The board discussed the legal structure of the district and next steps to clarify its relationship with Bonner County. Commissioner Domke asked the board to prepare a written scope for a meeting with outside counsel and suggested inviting the county attorney. Outside counsel recommended a two-part analysis: (1) service-by-service review of what the district buys from the county and whether to continue those arrangements and (2) a structural review if the board wishes to reorganize the district or change boundaries. The attorney said his business partner, "Bill DeGrae, has done that on three other occasions," and could be brought in for boundary/structuring work.

The board also discussed transitioning bank accounts from county-controlled accounts to a district account at Umpqua Bank. Staff advised keeping the county warrant account open temporarily to allow outstanding checks to clear and keeping the sweep (ACH/ EFT) relationship intact so federal and commercial payers (Medicaid/Medicare/commercial insurers) are not interrupted. County staff noted FDIC insurance limits: any account not collateralized by the bank will be insured only up to $250,000, so the district must plan to keep uninsured balances managed during the transition.

On other budget matters, the board reviewed a financial forecast and the expected new district costs for insurance, attorney fees, bookkeeping and claims processing. Commissioners urged the district to work closely with the clerk’s office and external auditor this year so the first independent district budget includes sufficient detail for the public and supports future audit and structural decisions. The board also asked staff to provide documentation on billing, collections and the district’s use of an existing debt-collection vendor so members can evaluate recovery rates and collection costs.

Votes at a glance: the board approved a consent agenda, adopted the order of the meeting agenda, and approved payment of FY2025 claims batch #27 totaling $65,589.29. The claims batch included a quarterly state insurance fund payment of $28,125 and routine vendor payments. During the roll call on the claims batch motion, Mr. Dobson, Commissioner Williams and Commissioner Quarney were recorded as voting yes; the motion passed.

The board directed staff to: bring a draft scope for the legal/structural meeting (to include potential JPA or dissolution/recreation options), produce objective cash-flow data to justify any TAN amount, and return with firm insurance and bookkeeping cost estimates ahead of the Aug. 20 budget hearing. Commissioner Domke said he would "plan to work with Chief Lindsay [to] come up with a draft scope to bring forward to the next meeting." The board set no final TAN amount at this meeting and left the TAN application and final availability decision for a future agenda once July receipts and projected costs are verified.

The meeting concluded after routine consent business and approval of claims. The board adjourned at 11:55 a.m.