Darci Mohr, Superintendent

South Routt School District

305 S. Grant St.
PO Box 158
Oak Creek, CO 80467

October 21, 2016

RE: Repayment of Contingency Reserve Disbursement for Non-Payment of Property Taxes

Dear Ms. Mohr:
In July 2016, the State Board of Education authorized a payment of $1,000,000 in state funds to South Routt
School District to alleviate the financial burden that was realized by the district from the non-payment of
property taxes by Peabody Energy Holdings. The second installment of Peabodys taxes that was due in
spring 2016 was not paid due to a bankruptcy filing. The district calculated the amount for this nonpayment of taxes at $564,595. The remainder of the $1,000,000 disbursement was in anticipation of nonpayment of taxes in 2016-17.
The Department has received information that Peabody attempted to pay the back taxes to the South Routt
county treasurer. We understand these funds were not accepted by the treasurer due to Peabody not
including approximately $91,000 in interest with the payment. Peabodys attempted payment was over
$1,000,000 which also included back taxes for the other taxing entities in the county.
As was discussed with the district, and outlined in the State Board agenda item, if Peabody paid the past
due property taxes, then the district was to return the payment to the Department. The Departments
contingency reserve is $1,000,000 which was depleted with the disbursement to South Routt.
The refusal to accept payment for back taxes has in turn not allowed the district to return state funds to
the Department. Since the contingency reserve was used entirely by South Routt, the Department does not
have the ability to help other districts that may need financial assistance. Therefore, the Department will
be seeking a supplemental appropriation from the legislature to refill the contingency reserve fund.
However, this refill is not guaranteed, and will likely generate many questions from state legislators about
the county treasurers refusal to accept Peabodys payment.
We respectfully request the district to urge the county treasurer to accept Peabodys payment of back taxes
so that state funds are returned to the Department. Attached is a Request for Payment that may be useful
in your communications with the treasurer.
If you have any questions, please dont hesitate to contact me.
Sincerely,

Leanne Emm
Deputy Commissioner of Operations

201 East Colfax, Room 500, Denver, CO 80203 P 303.866.6202

Katy Anthes, Ph.D., Interim Commissioner of Education | www.cde.state.co.us

REQUEST FOR REPAYMENT

South Routt School District

October 21, 2016

2015-16 Non-payment of property taxes by Peabody Energy Holdings

2016-17 Advance of property taxes due by Peabody Energy Holdings

$564,595
435,405

Total State Contingency Reserve Loan to South Routt

$1,000,000

Request for Repayment of loan for 2015-16 property taxes

$564,595

Please submit the requested amount by December 1, 2016 to:

Colorado Department of Education
Attn: Mary Lynn Christel
201 E. Colfax, Room 206
Denver, CO 80203

201 East Colfax, Room 500, Denver, CO 80203 P 303.866.6202

Katy Anthes, Ph.D., Interim Commissioner of Education | www.cde.state.co.us