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Board signs up for state treasurer’s interest-free short-term loan to smooth cash flow
Summary
Woodland Park School District RE-2 voted to participate in the Colorado State Treasurer’s interest-free short-term loan program, authorizing up to $3,954,538 to cover seasonal cash-flow shortfalls and repaid when property-tax revenue is received.
The Woodland Park School District RE-2 Board of Education approved a resolution on Jan. 29, 2025, authorizing the district to participate in the Colorado State Treasurer’s interest-free short-term loan program to address seasonal cash-flow needs.
District finance staff presented a cash-flow analysis showing months in late fall and winter when the district’s operational cash runs short before property-tax receipts arrive in late winter and spring. The packet and staff presentation proposed authorizing a not-to-exceed amount of $3,954,538 for short-term draws; staff said the typical short-term usage would cover roughly one to three months of operating cash and that the loan must be repaid once property-tax revenue is collected (presentation noted payback by June 2025 in the program structure).
CFO-level staff said the district’s typical monthly cash flow is approximately $1.8 million and that property-tax receipts concentrated in March historically provide the largest inflow. Staff explained the loan is for operating expenses only and cannot be used for capital projects; they also discussed table reserves and the district’s 3% state reserve, noting the program’s cash-flow modeling is intended to preserve required minimum reserves.
Board members asked about program limitations, how draws are requested and repaid, and whether participation could expose the district to risk; staff described the program as interest-free and noted it is commonly used by other Colorado districts. The board voted by roll call to adopt the resolution authorizing participation in the program.
Staff said that, if approved, draws would be requested on specified draw dates each month and that the state treasurer’s office intercepts property-tax receipts to first repay loan amounts; any excess funds after repayment would be returned to the district. District staff said they have previously applied and have worked with RBC on the cash-flow model; they will finalize the logistics and submit draw requests only when a documented cash need exists.
The board’s action authorizes participation; staff will return to the board as necessary if draws occur and to report on the program in routine finance reporting.
