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Airport managers seek short-term county loan to bridge federal grant timing for runway extension
Summary
Airport staff requested a short-term general-fund loan (bridge financing) while FAA entitlement grant reimbursements arrive for a runway extension project; commissioners asked for written assurances from FAA and scheduled a board order and supplemental budget for the next business session.
Airport staff told the Josephine County Board of Commissioners they are ready to advertise bids for a 700-foot runway extension but need a short-term county loan to bridge the timing between construction and federal grant reimbursements.
Airport Manager Mike Spole said FAA approval to advertise the project was expected imminently and that the bid letting is planned for mid‑July with construction to begin in August. He described the project as a roughly $3,000,000 effort but said the county already has an $864,000 grant agreement for preconstruction work (design, engineering and project management) and that most construction reimbursement will arrive as FAA entitlement grants beginning next spring and summer. Spole characterized the requested county action as a bridge: the county would make short-term use of general-fund cash flow while awaiting grant reimbursements.
Commissioners emphasized they want written assurances and documentation that the FAA and grant sources will provide the funds committed so the county is not left carrying long-term risk. Director Nelson (finance) said the county would need a board order to establish the loan and a supplemental budget; staff asked for about one week to prepare documents for the next weekly business session. Commissioners asked airport staff to obtain written confirmation from the FAA that the entitlement grant funds are reserved for the project and requested a short presentation at the upcoming WBS showing the schedule and funding flow.
Spole said the FAA indicated the grants are entitlement funds (not discretionary) and that the county has been saving airport grant funds for the project; he offered to provide FAA documentation. Commissioners and finance staff agreed the arrangement should include a board order and supplemental budget and said the loan would function like a short-term line of credit to smooth cash flow rather than a permanent county obligation.
No formal loan was authorized at the workshop; the board directed staff to prepare the board order, supplemental budget and supporting FAA documentation for formal action at the next business session.
