The Nederland Board of Trustees (BOT) met on Tuesday, November 29, 2022, at 7 p.m. to finalize ordinances dictating how 2023 tax revenue will be allocated. The BOT also continued their discussion on Nederland’s 2023 draft budget in a public hearing.

Town Administrator Miranda Fisher and Town Treasurer Rita Six presented the current draft of the 2023 town budget. Trustees were tasked with reviewing the latest draft and requesting any changes before they make a final approval of the budget on Tuesday, December 6.

Town staff project that 2023 sales tax revenue will increase 1% over the total revenue from 2021, while operating expenses in the General Fund will increase by 7.4% over the 2022 figures, totaling $408,362. Town staff also indicated that the Community Center Fund balance will increase by $89,160 in 2023, while the Sewer Fund operating expenses are set to decrease by 5.8%, a difference of $73,171 when compared to 2022.

Additionally, Town staff noted that the Nederland Downtown Development Authority (NDDA) plans to utilize some of the total $594,630 in TIF (tax increment financing) funds for large scale improvement projects through 2023.

Six noted to the BOT that the only changes from the November 15 meeting to the draft 2023 Town budget was the decrease of projected sales tax revenue from 3% to 1%, and the decrease in property tax due to the change in assessment rates. The decision by Town staff to decrease the projected sales tax revenue to 1% was made in order to budget more conservatively.

Trustees discussed at length the issue of water and sewer PIF (Public Improvement Fees) increases. The matter of PIF fees affects new housing projects and is directly connected with Nederland’s issue with securing water rights. Trustee Karen Blakemore mentioned in the meeting that Nederland’s PIF fees are higher than those of neighboring municipalities, and proposed to hold the increase to PIF from the 2023 Town budget until the reevaluation of Nederland’s water rights is brought to the table.

Trustees also considered decreasing the fees charged to businesses for “to-go” liquor licenses as well as decreasing, if not entirely waiving, the business license renewal fee.

Town Clerk Macy Caligaris has reached out to other city clerks in Colorado and discovered that most municipalities charge a business renewal fee of anywhere from $65 to $250. Caligaris also noted that she has received feedback from local businesses that consider the $25 annual fee to restaurants for providing takeout alcoholic beverages to be too high.

The BOT declined making any changes to the draft budget concerning PIF fees, liquor licenses, or business license renewals. Trustees gave a nod of approval to accepting the draft 2023 Town budget without any changes. This matter will return to the BOT agenda as an action item on Tuesday, December 6.

The BOT were also tasked with voting on the final approval of ordinances outlining how the revenue from new tax initiatives is meant to be allocated. The three new tax initiatives – a 0.25% increase to Nederland’s sales tax, a $2 increase to the Short Term Rental (STR) occupational tax, and a 5% special retail marijuana sales tax – were approved by Nederland’s electors in the November 8 election.

On November 15, Trustees discussed whether or not to create a special fund specifically for the sales tax revenue to be allocated for the Nederland Police Department (NPD), as well as a special fund for the marijuana sales tax revenue to be allocated for the Nederland Parks Department.

The BOT ultimately voted to approve all ordinances, deciding both to create a fund for the Parks Department and not to create a fund for the NPD. The BOT also approved the split in allocating revenue from the $4 STR occupational tax as 99% to the Health and Human Services fund and 1% to the NPD.

The Nederland Board of Trustees meet on the first and third Tuesday of every month. Their next scheduled meeting is on Tuesday, December 6, at 7 p.m. and can now be attended either online or in person at the Nederland Community Center. For more information go to: https://townofnederland.colorado.gov/ board-of-trustees