MARSHALL — This week, budget concerns and questions about the availability of federal funding both came up in discussion of proposed paving work at the Marshall airport. Members of the Marshall City Council ended up holding off on bidding for the project until next year.

A proposal to re-pave the aprons and taxi lanes around a hangar at the airport was brought before the council on Tuesday. In January, the council had authorized an agreement with engineering firm TKDA to do design work on the project.

Marshall Public Works Director Jason Anderson said the existing pavements had reached the end of their useful life.

“Generally, they’re 30 years old or greater and in need of repair,” he said. City staff were proposing a new four-inch asphalt surface in the area around the hangar.

Anderson said city staff were seeking authorization to advertise for bids for the paving project, but with the under standing that construction would not begin until 2026.

“The goal of bidding it now, is that we need to get grant requests in by April 28 to the FAA, in order to secure 2025 airport improvement program funding,” Anderson said.

Anderson said the city would consider the bids, but it would be “kind of a soft commitment to the project.”

The estimated cost of the paving was about $865,000, Anderson said. With grant funding, the city’s local share of the cost would be about $168,000.

“So we do not have funds dedicated for this project as of right now?” said council member James Lozinski.

Anderson said the city did not have funds for the project in the 2025 capital budget. It would have to be included in the 2026 budget.

“I think we should wait until 2026, because if we don’t have the funds in the budget, and we’re not sure how the 2026 budget is going to look, I think we’re jumping the gun,” Lozinski said. “At some point, we need to curtail where we’re spending money.”

Anderson said a disadvantage to advertising for bids later this year or in early 2026, is that it could push off construction until later in the year, and shorten the available time for the paving work.

Marhall City Administrator Sharon Hanson also asked Anderson about how secure FAA grant funding was, with uncertainties in the federal government.

“The FAA, at my last conversation, was really not sure about even our (Airport Improvement Program) funds, that they would be there for the next year,” Anderson said. “So that’s all still being worked out. But we would still recommend that we move forward under the impression that what’s historically been done would still be there in the future.”

“At the end of the day, te federal government will have to write us a grant agreement for us to move forward, so that really doesn’t harm us with this process,” Anderson said. Bid awards the city makes for the project will be contingent on grant agreements, he said.

Lozinski moved to wait on bidding for the paving project until it could be included in the 2026 budget. The motion passed 4-3, with council members Bob Byrnes, John Alcorn and Craig Schafer casting the votes against.

A separate item of business at Tuesday’s council meeting also had to do with the airport. Council members voted to approve an amendment to a MnDOT grant agreement to replace the airport’s instrument landing system.

Anderson said the city had an existing grant agreement from April 2024 for design work on the project.

“This amendment would include all the dollars necessary to complete the project, both construct it and complete engineering review,” Anderson said.

Total project costs with the original agreement and the amendment came to $581,306, with 70% state participation. The city’s costs for the project would be around $175,000. Funding was included in the city’s 2024 capital budget, Anderson said.