The Board of Trustees (BOT) met on Tuesday, November 7, 2023, at 7 p.m. for their second work session on the Town of Nederland’s 2024 Budget. Trustees discussed the revenue and expenditures for each fund, and revenue-building initiatives such as speed cameras, paid parking, EV charging fees, and a Short Term Rental (STR) regulatory fee.

The BOT ensured that their assessment of the draft budget would be in compliance with the priorities established within the 2023 - 2024 Strategic Plan.

Trustees first discussed potential new revenue streams and expenditures:

Speed Cameras and Speeding Tickets

Town Administrator Miranda Fisher presented information regarding the potential of adopting an ordinance to implement speed cameras, either fixed cameras or mobile camera trailers, in specific areas of Town to collect a projected $30,000 in revenue per month. Such a plan could include hiring a third-party agency to handle the installation, maintenance, and monitoring at the cost of $20,000 a month.

The Town might also receive a potential $80,000 yearly from speeding tickets issued by its contracted law enforcement service, BCSO. Speeding tickets issued by BCSO are four points and cost $165.

Nederland Sergeant Asa Merriam of Boulder County Sheriff’s Office (BCSO) was present to discuss the prospect of installing permanent speed cameras on the highway, which would require coordination with CDOT.

Fisher stated that the Town’s goal is not to issue tickets but to deter speeding, and that the aim of implementing speed cameras is in the interest of public safety.

Sergeant Merriam reiterated the fact that traffic control, from a law enforcement perspective, is meant to uphold public safety. He offered the statistic that this year in Colorado there have been somewhere between 240 and 280 deaths from vehicle-related accidents, and that the majority of those accidents were caused by excessive speeding.

Trustee Tania Corvalan stated her belief that speed cameras will mostly affect locals and that visitors to the area will not be as deterred from driving dangerously as they would if there were officers stationed in the canyon to hand out physical citations.

Trustee Nichole Sterling and Mayor Billy Giblin raised the issue of speed cameras recording and monitoring every license plate that enters and exits the town, like the cameras implemented in Longmont, Louisville, Lyons, and Superior.

Colton Kidd, the Government Sales Executive for Verra Mobility, an organization recommended by Town staff that implements municipal speed camera programs, assured the Board that the speed cameras to be used in Nederland would only record violators of the speed limit, and that there would not be any database storage of any other information beyond those infractions.

Trustee Eric Coombs-Esmail asked for Town staff to provide data of traffic accidents, injuries, and fatalities in the areas being suggested for the placement of speed cameras, taking into account that the issue of the cameras is being framed by Town staff as a safety issue, not a revenue issue.

Coombs-Esmail also disagreed with Kidd’s statement that there was no ethical difference between a camera observing a crime and a person observing a crime, considering that the crime is the same regardless. Coombs-Esmail states his belief that a person observes incidents with judgment and understanding, while cameras will automatically cite tickets based on an unwavering baseline.

The majority of the Board were in agreement that speed cameras would, by some degree, decrease speeding in Town, therefore making it safer, while also potentially increasing revenue. There was some concern that instituting speed cameras would be against the community policing model that the Nederland community has voiced as their preferred method of law enforcement.

Town staff will provide the BOT data for the locations suggested for the placement of speed cameras, though Coombs-Esmail’s suggestion of performing a comprehensive review of the speeding limits in town will not be initiated at this time.

Paid Parking

The Board discussed the possibility of hiring Interstate Parking, a paid parking monitoring and enforcement agency, to oversee paid parking operations for 67 spaces on East 1st Street and the Visitors Center parking lot. Under a revenue split agreement, the Town could receive up to $69,000 a year.

Interstate Parking’s Executive Vice President and Operating Partner Gareth Lloyd was present to answer the Trustee’s questions.

Fisher explained that Interstate Parking was chosen as Town staff’s recommendation because they did not require any Town staff component for the paid parking program. They were also flexible enough to engage a program where Nederland residents could park free for up to two hours. They cited their work In Breckinridge, Crested Butte, and Idaho Springs.

Lloyd detailed how Nederland could try a four-month trial of Interstate Parking’s services, which includes implementation, monitoring, and enforcement of Town’s 67 paid parking spaces. Interstate Parking’s technology relies on license plate recognition in order to ascertain if the vehicle belongs to a resident, a Town employee, or a visitor.

Trustees were generally in favor of Interstate Parking’s proposal, considering their customizable program options, experience with other local municipalities, and no upfront costs for their services.

Mayor Giblin was the sole voice in opposition, stating his belief that the Town instituting paid parking after several years of ignoring a lack of available parking presents Nederland as “uninviting.” Giblin said that paid parking was the “canary in the coal mine” regarding how its implementation can drastically change the identity of mountain towns.

IT Provider

Pam Elliot, President of All Mountain Technologies (AMT), an IT provider recommended by Town staff, was present for the work session to discuss their offer to Nederland.

AMT would provide their services for $2,200 a month, plus a $15,400 cost to transition to cloud-based application Microsoft Office 365. The transition cost can be paid over a period of three years.

Fisher noted that Town staff recommends AMT due to their expertise in cloud-based systems, and because contracting with AMT would provide Town staff with access to an expansive team of IT support.

Trustees gave a nod of four, directing Town staff to officially engage with AMT and move forward with the contracting process.

Strategic Planning Support

Mike Gratz, Executive Director for Rocky Mountain Performance Excellence (RMPEx), a nonprofit business that uses the award-winning Baldridge Program model to maximize performance for other organizations through educational and networking techniques, was in attendance to answer any questions from Trustees concerning their services if the Town were to budget for their $10,000 membership fee.

Fisher explained how Town staff could use a support system, like that offered by the monthly sessions facilitated by RMPEx, to ensure that the goals stated within the 2023 - 2024 Strategic Plan are being met efficiently and with the guidance of subject matter experts to produce more effective longterm planning.

“This is a much more in-depth service and support than any other training can provide us,” Fisher said.

Gratz reiterated that RMPEx would assist in developing processes that better visualize the steps involved in accomplishing what is laid out in the Strategic Plan, and guide Town’s department heads through those steps.

There was concern among some Trustees that the 2024 Budget was not flexible enough to accommodate Town staff’s recommendation to work with RMPEx. Coombs-Esmail and Sterling both asked if such an initiative for staff leadership support was necessary in 2024, considering the year is meant for stabilization while many plans and developments are coming to fruition by 2025.

Fisher voiced her belief that 2024 would be the ideal time to invest in Town staff leadership, especially since many plans are expected to be executed in 2025, and considering that the ongoing support provided by RMPEx will be a resource to department heads who typically do not use their department’s budget for their own support and needs over the training needs of their staff.

The Board was mostly in favor of keeping the prospect of contracting with RMPEx for strategic planning support in the draft of the 2024 Budget as discussion moves forward.

Colorado Surplus Asset Fund Trust (CSAFE)

Trustees reviewed projections for potential earned interest in 2024 if the Town were to invest another $1,000,000 with CSAFE into the Colorado Core Fund. Nederland has already invested $1,000,000 into the Colorado Core Fund, as well as $500,000 into the CSAFE Cash Fund, and, as of October 31, 2023, has earned $49,271 in interest.

EV Charging Fee

EV Charger provider and management company ChargePoint will be setting up an hourly charge fee of $1.00 an hour for the Town’s Level II EV Chargers, and $5.00 an hour for the new fast chargers, to be installed in Spring 2024. With the current plan being to offer two Level II chargers for 16 hours a day, and two fast chargers for 10 hours a day, the Town could receive up to $30,000 in revenue for 2024.

STR Regulatory Fee

Fisher presented a proposal to institute an annual STR regulatory fee, charging approximately $145 per bedroom, which would cover 25% of the Town Clerk’s salary, plus the $4,830 fee for contracting with compliance management service Granicus Host Compliance. This would bring an additional $27,840 in revenue to the Town yearly.

Trustees gave a nod of four to direct Town staff to keep the STR regulatory fee in the draft 2024 budget moving forward.

Sustainability and Permit Processing Fee

The BOT discussed a proposed processing fee for all required permit applications, or just for new residential or commercial construction, or for demolition permits, based on the estimated project valuation. This fee would raise up to $64,000 in revenue.

Town staff recommends that the fees include a 0.75% sustainability fee to fund the salary for the Sustainability Coordinator for 30 hours a week; the fees would also fund up to 40% of the Community Planner’s time.

There was a brief conversation on offering a 50% decrease off of a development’s permit fees if the developer were to divert their waste. Trustees were in favor of this prospect however they wished for this potential decrease to be indicated in the draft budget.

The Board briefly reviewed the draft 2024 budget for the Nederland Downtown Development Authority (NDDA), which includes funding earmarked for beautification, the Wayfinding project, and a summer concert series.

The NDDA has budgeted $20,000 for the implementation of the Multimodal Transportation Parking Plan, $20,000 for the implementation of Town’s paid parking initiative, $50,000 for a summer concert series, $60,000 for Beautification, and $400,000 for the Wayfinding project.

Due to a 20.7% increase in loan proceeds, and a 176.3% increase in earned interest, the NDDA’s 2024 budget indicates a total of $899,175 in revenue, a $151,244 increase from last year. The NDDA is projected to spend a total of $1,074,447 in expenditures in 2024, which is a $326,516 increase due to a 30.1% increase in personnel and accounting costs, and a 566.7% increase in legal costs.

NDDA Board Member Steve Karowe, who sits on the Wayfinding Committee, addressed questions and concerns from Trustees regarding the Wayfinding project. A breakdown of the proposed $400,000 budget was provided by Karowe, which indicated the cost of fabrication and installation of informational kiosks and several signs of different sizes and types, ranging from $750 to $13,750 each.

Trustees then discussed the trends and projections for Nederland’s 2024 sales tax revenue and property taxes.

Though the Town’s sales tax revenue for 2023 is projected to be 4.4% higher than 2022, all other funds are trending 4% lower and the General Fund is trending 17% lower compared to last year. Fisher recommends that the sales tax for 2024 remain the same for all funds, but the General Fund should instead be adjusted based on funds received in 2023 and on estimates for the remaining months of the year.

Net property valuations are expected to increase by 30.1%, with the current assessed value, without any reductions, being $45,832,777. The 2024 budget also highlighted reductions under the current law, SB22-238, being $23,372, and reductions if SB23-303 (Proposition HH) were to pass, being $56,047.

Proposition HH did not pass, therefore the projections under the current law, SB22-238, will be reflected in the draft budget moving forward.

The BOT moved on to assess the Town’s government and proprietary funds:

General Fund

The General Fund is expected to show a 5.6% decrease in total revenue, going from $6,130,984 in 2023 to a projected $5,784,760 in 2024. Capital expenditures will go down 73.9%, from $808,069 to $211,280; and operating expenditures will rise 18.7%, from $2,812,865 to $3,338,692.

$110,448 from Boulder County Housing Authority is being requested by Town staff to be reserved for match funding for potential Great Outdoors Colorado grants. $36,500 from the parking lease with Eldora is reserved to be used for park improvements.

Overall, the General Fund will be operating at a decrease in the fund balance of $155,789, and with a fund ending balance of $954,655.

Trustees voiced concerns that the General Fund was not balanced and that the fund was operating in the black but capital expenditures were bringing the final budget in the negative. There was also concern raised that the fund was relying on the revenue streams proposed but as of yet not confirmed for 2024, such as the implementation of speed cameras.

Community Center Fund

The Community Center fund is expected to show a 3.2% increase in total revenue, which is a $17,185 increase from last year’s balance of $541,198, and is a result of a $10,000 increase in “other revenue.” Operating expenditures will increase $5,714 to a total of $430,895 for 2024; building expenses will rise 59% from last year, while office expenses will drop 36.6%.

The Community Center fund will be operating at an increase in the fund balance of $94,839, with a fund ending balance of $515,163.

Water Fund

Trustees discussed the budget for the Water Fund, which indicates $1,052,998 in total revenue, which is a $111,523 increase from last year. There will be a 36.5% decrease in building expenses, a 43.2% increase in office expenses, and a $20,139 increase in total operating expenditures from last year’s balance of $656,437. There will also be a $35,000 increase in capital improvements, totaling $295,000.

Overall, there is $677,007 being reserved for water infrastructure improvements and expansion. The Water Fund will be operating at a decrease in the fund balance of $61,837, with a total fund ending balance of $3,444,630.

Sewer Fund

The Sewer Fund budget indicates $1,142,116 in total revenue, which is a $28,841 increase from 2023. There will be a total of $659,928 in operating expenditures in 2024, a 7.7% increase from last year, mostly due to a 50.1% increase for professional services. Capital improvements expenditures will rise $18,000, to a total of $265,000.

$232,890.50 is being reserved for sewer infrastructure improvements and expansion. The Sewer Fund will be operating at a decrease in the fund balance of $68,871, and with a total fund ending balance of $3,419,753.

Street Fund

The Street Fund will see a 4.9% increase in total revenue, totaling $143,878; the increase comes from $6,700 earned in interest from last year. Total expenditures are set to be $32,799 less than last year’s total of $285,500, mostly due to a $40,000 decrease in the equipment and supplies budget. The budget also indicates a $57,201 transfer of funds to cover half the cost of a major equipment loan.

Overall, the Street Fund will be operating at a decrease in the fund balance of $108,823, and with a total fund ending balance of $34,808.

With the Town budgeting $50,000 for the installation of driveway and roadway culverts, and with the Street Fund balance being so inflexible, Trustee Jesse Seavers was in favor of the Town only installing $10,000 worth of new culverts and to then have property owners be responsible for the cost of culvert installation on new developments.

Parks Fund

The Board then moved on to the Town’s newest fund, the Parks Fund, which, without any previous data to work from, did not include many projections on the 2024 budget.

The draft budget estimates that the 5% marijuana retail sales tax will earn $85,000 in revenue, and the parks and trails maintenance line item was officially moved to the Parks Fund. The fund indicated $44,000 in total expenditures, leaving a fund ending balance of $44,000.

Conservation Trust Fund

The Conservation Trust Fund will see a $4,000 increase from last year’s $27,000 in total expenditures. The budget is allocated for parks and trails improvements and maintenance.

The Conservation Trust Fund will be operating at a decrease in the fund balance of $15,000, and with a total fund ending balance of $3,326.

Health and Human Services Fund

Revenue and expenditures for the Health and Human Services Fund dropped from $69,300 in 2023 to $20,400, due to $48,900 being transferred to the General Fund. There was no change in net assets therefore the fund ending balance remains $9,480.

The lodging occupation tax revenue is estimated at $40,000; Town staff is recommending a split of 49/51 with the General Fund, meaning the Health and Human Services Fund would be allocated $20,400.

The BOT will discuss the draft 2024 budget during their next meeting scheduled for Tuesday, November 21, 2023, at 7 p.m. A special meeting will be held on November 28 for a public hearing on the final draft of the budget, and Trustees will then formally approve the budget, as well as certify the 2024 mill levy, on December 5.

The Nederland Board of Trustees meet on the first and third Tuesday of every month. Their next scheduled meeting is on Tuesday, November 21, 2023, at 7 p.m. and can be attended either online or in person at the Nederland Community Center. For more information go to: https://townofnederland.colorado.gov/ board-of-trustees .