NEDERLAND - The Nederland Board of Trustees (BOT) spent over two hours discussing the complexities of the Town’s budget for 2025 during a dedicated work session on Tuesday, October 29, 2024.

With big water and sewer infrastructure projects on the horizon, and revenue concerns affecting several departments, the biggest issue is Nederland’s unsustainable contract with Boulder County Sheriff’s Office (BCSO).

The Town’s contract with BCSO includes a 13% increase, totalling $121,838.09, over 2024, bringing the total cost of law enforcement services for 2025 to $1,054,037.01. 

According to BCSO Division Chief Jason Oehikers, 4% of the increase is attributed to deputy’s salaries, benefits, and worker’s compensation insurance, and 9% covers vehicle maintenance and equipment costs, as well as accounting for updated worker’s compensation and officer training costs. 

Oehlkers added that Nederland can expect such an increase each year under contract with BCSO, though the amount may fluctuate.

Town Administrator Jonathan Cain noted the many concerns regarding the contract in addition to the 13% increase in cost, including the cost to the Town of extra duty officers, BCSO having fallen short of their projected revenue from traffic citations, and whether Nederland residents are receiving the expected coverage of a fully staffed police force. 

Town staff’s suggestion was to reevaluate the level of service Nederland requires from BCSO, to consider going down to 50% dedicated time from BCSO deputies for a less expensive yearly rate. Other suggestions were to hire an independent Marshal for Nederland who would work with and oversee BCSO’s extra duty officers. 

Some Trustees immediately began asking questions pertaining to the Town rebuilding its police department, as they considered it would be easier to manage the department’s hypothetical $1.1 - $1.3 million budget.

Cain stated that Idaho Springs pays $1.4 million for their own police department, which includes eight Deputies and a Chief. However, it was reiterated that the Town’s previous search for a dedicated Marshal did not yield positive results.

It was also stated that a Nederland Police Department (NPD) would need to be practically built up from scratch, save for some firearms, equipment, and one vehicle that the Town still owns.

Mayor Billy Giblin moved the conversation forward by admitting that Nederland will most likely need to remain under contract with BCSO through 2025, possibly 2026, even considering the option of rebuilding the NPD, as such an effort would be a lengthy process. 

Town Treasurer Rita Six specified that regardless of which option the Board chooses for the levels of law enforcement service, there is still the issue of budgeting for extra duty deputies for traffic enforcement, as data from BCSO showed Trustees that Nederland’s dedicated deputies have only been issuing one traffic citation a week on average. 

Nederland spent $50,000 over budgeted projections for 2024 on extra duty officers while also paying for dedicated deputies as they went through training. Funds collected from traffic enforcement did not come close to projected revenue in the 2024 budget, as BCSO has only completed 700 traffic stops so far this year.

Oehlkers explained during the BOT’s meeting on October 15 that BCSO would need to make 4,000 traffic stops a year to reach a projected revenue of $80,000.

The Board was in agreement that a reduction in law enforcement services was not in the community’s best interest, though there was discussion of accountability factors being instituted to clarify deputy response times. 

There was also discussion about BCSO requiring the Town of Nederland’s definition of “community policing,” in response to the Town and Board’s disappointment about revenue from traffic enforcement. BCSO considers issuing traffic citations to be against Nederland’s previously stated preference for community policing. 

Cain continued the meeting by leading Trustees through the proposed capital improvement plans for each of the Town’s departments in 2025. 

The Nederland Community Center (NCC) requires a structural assessment of the west wing to determine whether the wing can sustain a remodel instead of a complete rebuild. NCC Manager Dawn Baumhover stated her belief that the west wing must be rebuilt as it was not designed to last long.

Baumhover detailed that the east side of the building requires roof repairs to mitigate leaking and ice damming. The NCC filed an insurance claim which covered patching of the roof for a temporary fix, though more money will be required than the $11,000 left from the claim in order to complete the necessary repairs. 

Trustees asked about the possibility of NCC operating for steady weekend hours. To the suggestion of allowing the gym to remain open without full staff, Baumhover explained that operating with diminished staff could result in a safety issue, particularly with unhoused individuals hiding in the building to sleep, which she and her staff have already experienced.  

As for Town Works, the Utilities Department will be presenting the Board with the results of the water and wastewater rate study on November 12; the results will need to be evaluated and be included into the department’s 2025 budget. 

According to Utilities Manager Andrew Bliss, $2 million worth of sewer pipe needs to be lined. Bliss also suggests starting with a $50,000 sanitary sewer design project for 2025, while also pursuing a grant for a grit removal project to service the facility’s digester. 

Another pump for the digester is requested, at the cost of $20,000; $250,000 is being requested for water main distribution improvements; $100,000 for the construction of a bulk water fill station; and $60,000 is being requested for a generator and additional backup power equipment in order to keep water and wastewater facilities fully operational during days-long power outages. 

The Streets Department budget for 2025 is $257,201, which is supported by sales tax, with an additional $447,119 allocated from the General Fund to support improvements and paving for Nederland’s streets.

Streets Department Manager Joshua Davis spoke to Trustees about the need for a sand shelter for the Town’s supply of industrial-use sand; Davis has purchased the shelter but it requires $22,000 to $25,000 of labor to construct it. 

Parks Manager Nicki Dunn addressed the Board about her need for a new full-time employee, having lost Brian Biggs to the Nederland Utilities Department. Dunn requested to hire a new employee for the remainder of 2024, but the Board tabled that determination until later budget discussions in order to ensure that the decision to hire in 2024 would not affect the general fund’s deficit. 

Dunn also asked for $62,000 to $71,000 for a new skid-steer with a snowblower attachment, and warned Trustees of a new statewide initiative to prohibit municipalities from using any gas-powered equipment of 10 horsepower or less. Over the next several years the Nederland Parks Department will be required to replace its chainsaws, push mowers, weedwhackers, power washers, leaf blowers, and more.  

The Nederland Downtown Development Authority’s (NDDA) projected budget for 2025 is $912,000. Trustees addressed questions to NDDA Executive Director Kate Masingale regarding why only $150,000 of the NDDA’s $1 million budget for 2024 was spent. 

Masingale stated that nearly half a million of the 2024 budget was attributed to the NDDA’s Wayfinding project. However, that money was not spent this year because the project was on hiatus in order to be compliant with the Town’s guiding documents currently being drafted.

An additional $300,000 of the NDDA’s 2024 budget was also allocated “aspirationally” to other projects that were not completed, such as the replacement of East 2nd Street’s crusherfine sidewalks. 

After Trustees questioned the NDDA’s trajectory regarding its own strategic development plan and whether such initiatives as beautification and public art are as important when entering into a deficit, Masingale stated that the NDDA is dedicated to a future work session so to align with the BOT’s goals.

“The BOT and the DDA need each other to exist,” Masingale said in response to one Trustee’s suggestion that the Town would make better use of the NDDA’s funding. “If the DDA doesn’t exist this money doesn’t exist; there’s not a way to move it over. We’ve had this conversation many times before; our lawyers have weighed in. I just want to clear that up.” 

Additionally, going into 2025 the Town is expected to provide the $146,000 match for the Federal Emergency Management Agency’s grant to complete a Big Springs Emergency Egress route. Cain reiterated several times during the meeting that the egress route project was a top priority for 2025. 

The BOT agreed that the Town’s top priorities in 2025, apart from the completion of the Big Springs egress project, were the Town’s water rights and water infrastructure, affordable housing, and executing on the recommendations made in the Multimodal Transportation Plan in regard to critical infrastructure improvements.

The Town is expected to spend $456,513 from its reserves in 2025, leaving a remaining balance of $839,000. Cain specified that, though this is what reserves are there for, there will not be enough in the reserves by 2027 to continue to provide the current level of services to the community. 

Cain reiterated that the Town and BOT needs to focus on new revenue streams while also managing its current resources responsibly, and to explore “strategic possibilities that address financial needs.”

However, in terms of maximizing the Town’s sales tax revenue, Cain added that sales tax alone won’t solve Nederland’s fiscal problems.

“I looked at the size of our economy right now based on the sales tax we generated this year, and estimated what we would need, in additional tax dollars revenue, probably close to $6 million , so I’m not sure that sales tax alone fixes the problem,” Cain said. 

The BOT will continue discussing the 2025 Town Budget in order to approve it during their meeting on Tuesday, November 19, 2024, at 7 p.m.