Woodland Park board approves FY25 true-up for Merit Academy, decouples COP obligation

The Woodland Park School District RE-2 board approved the FY2025 district merit services true-up at a special meeting, voting unanimously to accept the reconciliation as presented and to decouple it from future-year COP (certificate of participation) obligations.

The document presented to the board showed revenue flow-through amounts to Merit Academy, corresponding amounts the district determined were due, and one-time adjustments including crediting transportation costs and reducing certain administrative charges. Speaker 3, who led the presentation, described the spreadsheet breakdown and said the district would credit transportation "every penny of it" and apply a reduced administrative fee figure that had been agreed with Merit’s finance staff.

Board members pressed staff on the payment schedule and contract terms. One member asked whether the true-up funds were due immediately or could be paid over the remainder of the fiscal year; staff said the district planned to recoup the amount in equal payments through the rest of the year and that a formal contract is needed to document timing.

Legal counsel advised the board that because there was no signed written agreement obligating Merit Academy to pay prior transportation costs, the district has limited ability to recover those earlier expenditures. Several trustees expressed frustration that prior administrations had committed services without clear contracts and urged that future arrangements be captured in writing.

Trustees debated whether state 'stabilization' or declining-enrollment funds were intended to cover transportation costs. Speakers noted the state-designated purpose of such transition funds is to buffer a district as enrollment declines and to support winding down costs; board members emphasized the funds are not generally intended to become an ongoing funding source for recurring services.

At the motion to approve the FY25 true-up (presented as a standalone FY25 reconciliation and explicitly decoupled from future COP obligations), the board voted by roll call with unanimous 'Aye' votes and the motion passed.

Board members asked staff to draft clear, mutual agreements with Merit Academy to define future service responsibilities, which staff said they plan to begin work on in March. The board also reiterated concerns about declining reserves and the need to prioritize core educational services.

What the board did not disclose publicly were the precise payment schedule details in a signed contract; staff said a contract will be developed to formalize timing and payment mechanics.

The board proceeded from this item into executive session to address legal advice on a separate litigation matter.