Bonner County pauses new PTO/CAT payout policy after auditor flags potential $330K–$500K annual cost

The Bonner County Board of Commissioners voted on June 2 to pause implementation of a newly approved policy that would allow employees to receive cash payouts for PTO and CAT accruals once they reach their caps, after the auditing office said the measure had not been reviewed by auditing and could impose substantial recurring costs.

Auditing presented a memorandum saying the county’s leave balances show 48 employees at the CAT cap (480 hours), 11 of whom are also at the PTO cap, and projected the additional payroll cost from routine PTO cash-outs at roughly $330,000 to $500,000 annually, excluding payroll taxes and retirement contributions. "Auditing does not support the policy change in its current form," the memorandum said.

County commissioners acknowledged the fiscal concerns and also heard sustained public testimony from law-enforcement and detention staff who said chronic understaffing makes it difficult for them to take earned leave. Levi Shield, representing the Fraternal Order of Police, told the board the change could reduce more-expensive overtime costs: "The auditors argue that this proposal could cost the county as much as $500,000. This is probably accurate. However, this isn't base salary costs and does not affect the overtime budget. The cost of paying out overtime to cover these vacation days is 53% more expensive on average than paying out PTO accruals which exceed the established caps."

Jail Sergeant Robert Huskins described local staffing realities: "Since I've been sergeant, which has been almost 3 years, I have run with four people, which is the minimum staffing for probably more than 75% of the time that I work ... We cannot take time off without someone covering overtime." Several dispatch staff echoed that they are at critical staffing levels and that required overtime is routine.

Board members said the payroll impact needs more precise, department-level analysis before proceeding. The clerk's office and controller were asked to compile estimates from affected departments about how many overtime hours might be avoided by allowing payouts, so the county can compare those savings against projected payout costs. The motion to put a freeze on the policy and return with additional data in a minimum of two weeks passed on a unanimous roll-call vote.

What happens next: Commissioners asked for an "apples to apples" comparison from each affected department showing anticipated average overtime reductions per pay period if the policy were implemented. The controller and auditing office will refine the fiscal estimates, including employer payroll taxes and retirement contributions, and present updated numbers for the board’s next meeting.

The board’s action is procedural: it delays implementation and requires more fiscal analysis; it does not yet rescind the policy. The pause is intended to produce a clearer picture of whether payout authority can be paired with budget neutrality or net savings from reduced overtime.

Timing: The board asked for the follow-up in a minimum of two weeks. For now, the implementation is on hold while auditing and departments provide additional analysis.