Pitkin County OKs plan to authorize short-term $8.1M interfund advance to airport fund

Pitkin County finance staff proposed an $8.1 million short-term interfund advance from the general fund to the airport fund to bridge potential timing differences between when runway work requires payment and when the county receives FAA reimbursements. Ann Driggers, the county's chief financial administrative officer, told the board the advance would be used only if necessary and that the airport would pay interest so the general fund would not lose value.

"This would only be used if necessary, and it would be a short-term loan," said Liz Woods, finance director and treasurer, describing the plan as a precautionary cash-flow tool tied to FAA reimbursement timetables. Woods said the county would prefer repayment within the same calendar year but allowed that the structure could cross a calendar year with finance-structure approval.

Commissioners pressed staff on the proposed interest rate and the repayment trigger. Woods said issuance of the airport bond or the receipt of FAA reimbursements would obligate repayment: "The resolution basically says that the airport has to repay it," she said. Staff added that past FAA reimbursements have typically arrived within weeks, leading them to expect only brief use of the advance in most scenarios.

The board voted to place an informal resolution on first reading authorizing the interfund advance and scheduled a second reading; a motion to approve first reading was made and seconded during the meeting.

The interfund tool is intended as contingency funding for the runway reconstruction project staff described earlier in the meeting. Airport staff and finance said they will return with the formal loan documents and any adjustments to interest or repayment terms at second reading.