John Scarffe, Nederland.  The Nederland Board of Trustees introduced its 2017 budget at the public hearing during a regular meeting at 7 p.m. on Tuesday, November 1, 2016 at the Nederland Community Center. The Board discussed creating a task force on the local economy as well.

To begin the budget discussion, John Cutler of independent auditors, John Cutler & Associates, presented the Town’s 2015 audited financial statements. Cutler told the Board that every year the state requires that they review financial figures.

“The good news is we got it done,” Cutler said. “It was a challenge. It seems like we’re on a good path now. The end result was a clean, unmodified opinion.”

According to background from Town Administrator Alisha Reis, this audit season was particularly difficult due to turnover in the accounting position after the exit of the Town’s long-time treasurer in July 2015. “Town staff, including Special Projects Manager Kathy Weiss, our new accountant Jennifer Hogan, and I, worked to provide documentation for the audit and assist the auditors in their review.”

Reis told the Board that Town staff was just glad to get through the process. “We are now on a very good path. This clean audit is going to be hung on my wall.”

Reis also presented the draft 2017 Budget with 2015 financials included, but without 2016 forecast figures. The budget was posted on October 21st and updated.

The public may submit comments in writing through the adoption process.

For the second budget review on November 15, 2016, the budget draft will be updated with the 2016 forecast and proposed 2016 supplementary budget. The Budget will be up for adoption at the December 6th Board of Trustees meeting, along with the mill levy resolution.

Reis said that three goal areas set by the Board are driving the 2017 budget: economic sustainability, infrastructure and housing. The Board had work sessions and set up some goals to work on.

Items advancing Town goals in the budget include a street and storm water bond project, biosolids phase one and two and the backwash project at the water treatment plant, Reis said. A rental housing and short-term rental licensing program is moving forward, and the Planning Commission will make recommendations about it on December 14, 2016 after a public hearing on the proposed ordinance.

The budget also calls for a new snow plow and dump truck for street maintenance and intends to incorporate the new Town Shop into Public Works. Staff has also been discussing an economic development position, as well as potential housing development with Boulder County.

Nederland has been experiencing changes in demand during the past decade, Reis said. The population has been growing and is projected to continue to grow.

Annual visitors to the Nederland Visitor Center run about 20,000 folks per year, and the traffic count is at 2.8 million cars at the traffic circle.

Sales tax revenue has seen an 84 percent increase since 2006, and the net for the year is about $500,000 higher than that benchmark year. New programs and functions are placing demands on staff, Reis said. Police calls for service are up 124 percent over 2015.

Public Works implemented   a new work order system during the past year and 253 orders were submitted. Revenue projections call for a 3.1 percent increase in sales tax, which has grown steadily during the past few years, Reis said.

Property taxes are down slightly, at about 1.3 percent. The Town is applying for $500,000 in grant revenues, Reis said. Some grants don’t a require match, but some do. Grant activity includes FEMA flood reimbursements ($265,000 still outstanding from the 2013 event), pipeline repairs and police equipment.

Staff functions make up the largest of Town costs at about 50 percent, Reis said.

“Investment in staff is where a lot of your attention should be as you look over the numbers. We cover a lot of ground with about 30 folks.”

Some incremental increase has been requested in every area among staff, Reis said.

Actual proposed staffing recognizes the Town’s living wage commitment, a $90,000 investment this year that also includes a 1 percent cost of living allowance and 5 percent merit raise pool. They would like to hire a part-time to full-time receptionist at Town Hall, one police officer and one worker in the streets and parks division.

Capital projects include the Big Springs Egress at Doe Trail. The Town is looking to partner with neighbors and the U.S. Forest Service. The Community Center roof also needs attention and Town staff have been talking to the engineers about it, Reis said.

The Nederland Downtown Development Authority operating fund will total $24,250 for revenues and expenditures. The DDA will not be budgeting for capital items pending results of an election for a debt authorization next November.

Mayor Pro-Tem Charles Wood asked where the Town is with the study on storm drainage. Reis said they are requesting funding. The time frame is for the election in November 2017, and they are working with the DDA on that.

Wood said that if they could have a planned, updated community survey before we get to the 2018 budget sessions next summer it would be helpful. “We don’t get a holistic feel of what the whole community would prioritize. Such a big chunk of downtown is underutilized. Encourage us to put that on the front burner, too.”

Trustee Julie Gustafson asked about funding for police officers, and Town Marshal Paul Carrill said: “What you have right now is a call for services that is outstripping the officers we have on staff. They have no time to do community activities.

“What you’re getting out of the PD is officers who are making their calls, processing that arrest and then going on their next call. Things that start building the trust with the police force, they don’t get that.

“We’re being very conservative asking for the 2017 increase. It’s a reasonable request,” Carrill said of the one additional requested officer.

Trustee Stephanie Miller said it would be more exciting if she could get a presentation on what the Town is covering on maintenance. “I don’t have a sense of what we’re doing now. If we could have a break out of that -- understanding what $300,000 goes for, that would be really helpful to frame the discussion of where we want to go.”

Reis said that next time they receive the budget it will be broken down farther.

Mayor Kristopher Larsen suggested that in January the Police Department show a few slides about what they are doing and major accomplishments in 2016.

Larsen said the Trustees don’t know yet what flexibility they will have, but he wanted to have a free ranging discussion, giving input to staff as to what they would like to see included or modified in the draft budget.

Trustee Topher Donahue said he would like to see the Town have a sustainability coordinator, who would help with environmental sustainability. “I would like to see us consider things that will take us to the next level. You did a great job of keeping the budget under control this year. Great job.

“I would like us to let go of the detail and focus on what we can do to change our model,” Donahue said. A sustainability coordinator would help us get to the next level.  ‘I’d like to try to change the game: downtown redevelopment, better utilization of the lake area.”

Wood said he thought they could do that. “Downtown development is crucial. There will be a hullabaloo about personalities, etc., and we will react to that.” The Town should be proactive in defining what we want -- economic sustainability, affordable housing, reducing the use of cars and increase walking, he said.

Larsen said that on tonight’s agenda was discussion of an incentive policy and creating a task force on the local economy and housing. He asked if they should introduce it and convene the task force at the next meeting -- helping the Town develop the things it should have.

Donahue said that he would love to see the Police Department asking for a police station, and Reis said that it’s on the radar with a potential redevelopment of the Town Hall site downtown. “Our concept has been the Police Department would be combined with Town Hall. It will probably take us five years to get through the conceptual designs.”

Larsen asked when the Trustees need to make a decision about the number of new hires, and Reis replied that it should be on December 6, 2016, when they adopt the budget. Miller asked if it is feasible to adopt a budget in a month that doesn’t have a staff increase.

Reis said the Board could do a supplementary budget in February. “Truly, you’ll make a better decision over the next two meetings. We don’t get any new revenue information until at least February. You’ll have good information.”

Miller said the staff has been doing a great job getting grants but that has taken away from other things they should be doing. That ends up being a lot for us to manage. “We have really compelling cases for getting grants. How do we keep up our day to day? Some of the day to day we couldn’t keep up with because of other obligations.”

Gustafson asked if they are jumping the gun trying to form a task force when they don’t know what they want it to be. Larsen said that’s part of their charter – volunteers who are excited about this.

Reis said that if they can confine the time frame, many more people will agree to be on the task force. She’d like to see how some of these ideas would work.

(Publisher November 10, 2016 in the print version of The Mountain-Ear.)