Josephine County airports report: runway work done, FAA funds and line-of-credit used to bridge invoices
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Summary
County airports staff reported completion of a runway extension and ongoing projects, said lease deals boosted revenue and clarified the $3 million county line of credit was used as standby (about $1.2 million drawn) to cover early contractor invoices; FAA reimbursements expected to restore reserves.
Airport leadership briefed the board on multiple completed and upcoming projects and on short-term finance measures at the Jan. 6 workshop.
Staff said the runway extension project (described in the packet as a $2.7 million project) is substantially complete and on budget, and that PAPI and runway lighting installations are scheduled next week pending an FAA flight survey. Airport staff said hangar construction is finished and leases are in place (certificates of occupancy pending), an Illinois Valley fuel farm project was advertised for bids with openings in mid-January, and revenue for airport services increased substantially year over year (staff cited an increase of about 129%).
On finance, staff clarified the county provided a $3 million line of credit as a precaution; the airport drew a portion to cover the first contractor invoice from Knife River (about $1.2 million), used airport reserves for part of the invoice, and expects an FAA Airport Improvement Program (AIP) reimbursement tranche (~$1.45 million) to replenish airport funds later in the month. “It was not a loan of $3,000,000 — just a line of credit,” airport staff said, and added the anticipated FAA payment should eliminate the outstanding draw.
Staff also described a 15-year lease with Pacific Power and several shorter-term and long-term lease arrangements that will provide recurring revenue. Upcoming work includes a taxiway Alpha extension (engineer roughly 50% complete on plans, with bids expected in April and construction planned for summer) and longer-term planning for a parallel taxiway after 2028.
Board members asked for a follow-up once invoices and reimbursements clear; staff committed to providing updated figures to show the line-of-credit draw and reimbursement timeline. The transcript does not include the final, reconciled invoice amounts; the county’s finance office or airports department holds the official accounting records.