Woodland Park School District RE-2 board approves $3 million cap in state interest-free loan program

At a special meeting, the Woodland Park School District RE-2 Board of Education approved a resolution to increase its borrowing limit under the state treasurer's interest-free loan program from $2,000,000 to $3,000,000.

The board moved and voted on the resolution after Speaker 3 described the program as "an interest free program" and said the district is required to repay roughly $2,000,000 when property-tax revenues arrive next month. Speaker 3 said the additional roughly $1,000,000 would provide a short-term buffer so the district can continue paying suppliers and employees while awaiting tax receipts. "As you pay back $2,000,000, then you simultaneously can request additional funding," Speaker 3 said.

Speaker 2 asked how the funds are handled on the books; Speaker 3 said the loan is recorded as a liability and the proceeds are generally placed in the district's general fund and can be used to cover expenses across funds. Speaker 2 raised concerns raised by members of the public that teachers might not be paid; Speaker 2 quoted a parent saying, "We really we're really worried that teachers won't get paid." Speaker 3 replied that he did not expect immediate negative impacts and that district staff had met with the Colorado Department of Education (CDE), which reviewed a 60-day cash-flow forecast and told the district they were "very comfortable."

On a roll call the board recorded Ayes from Burley, Davidson, Gilvin (listed in the transcript as "Gilvin Est"), Gordon and Greenstreet; the motion passed. The minutes and the motion as recorded instruct staff to prepare a draw request with district signers (Speaker 3 said Ginger and he would submit a draw request if approved) and to proceed with the administrative steps required by the state treasurer's program.

Details recorded in the meeting: the requested limit increase is from $2,000,000 to $3,000,000; repayment was discussed as tied to the first property-tax payment, with Speaker 3 referencing a 90% repayment requirement on that first draw in the program's routine administration. Speaker 3 also said the district is currently working with auditors and that the timeline could result in a "disclaimed" audit opinion, but that the CDE had reviewed cash-flow materials and signaled comfort with the plan.

The board did not specify who moved or seconded the resolution in the transcript. Next steps mentioned at the meeting were the signing and submission of a draw request and continued coordination between district finance staff and the state.