Bonner County Ambulance District repays $500,000 TAN principal and keeps line open

The Bonner County Ambulance Service District commissioners voted to repay $500,000 of the district's Tax Anticipation Note (TAN) principal and keep the TAN account open, a move the commissioners said will stop additional interest from accruing while preserving a borrowing facility.

Chief Lindsay, who presented the district's fiscal forecast, told the board the figures are preliminary and will change as staffing and billing patterns evolve. "We didn't create this problem, we're dealing with the problem," Chief Lindsay said, describing the multi-year fiscal shortfall the district is addressing.

Why it matters: The payment reduces the TAN principal outstanding and halts additional interest accrual on that amount; the decision changes the district's near-term cash position and affects how much operating cash will be available before the July tax levy deposit.

Key figures presented by Chief Lindsay and staff during the budget update include: - Current cash balance (reported): $1,979,484.43, including outstanding checks of $74,963. - Projected remaining billing revenue through the fiscal year: $920,000 (approximate projection). - Projected tax-levy deposit in July (estimate): $1.1 million (noted as an estimate by staff). - Projected operating expenses remaining (round numbers used by staff): roughly $640,000 for specific line items and roughly $2.1 million when aggregated with payroll and other operations for the remainder of the fiscal year. - Without the TAN payment, staff presented an illustrative year-end cash position near $900,000; with the payment and other adjustments, staff said year-end cash was likely to be in the $400,000'$800,000 range depending on several variables.

At the meeting the board moved to authorize repayment of $500,000 of the original TAN principal while leaving the TAN facility open for future use. The motion passed on a roll call vote: Mickey Tonke, yes; Richard Williams, yes; Richard Watkins, yes.

Board members and staff said the TAN payment was timely because continued interest accrual would reduce the cash available for operations. Commissioners asked staff to return next week with additional cash-flow detail broken out monthly and with revised projections that reflect recent staff vacancies.

What remains unresolved: staff reported they have not yet received final confirmation from the bond attorney and are awaiting the bank's procedural guidance for renewing or reissuing TAN paperwork. Commissioners directed staff to follow up and provide updated documentation and monthly projections at the next meeting.

Ending: The board approved the principal payment and kept the TAN open; staff will return with a monthly cash-flow breakdown, updated revenue projections and any additional legal guidance about TAN renewal or closing procedures.