NEDERLAND — The Nederland Board of Trustees (BOT) met on Tuesday, August 18, 2026, to discuss the 10-year Capital Improvement Plans for the Town’s water and wastewater systems. In relation to the almost $50 million in projects outlined, the Board also addressed the issue of TEENS, Inc. and the $361,582 in unpaid water and sewer fees for their new childcare center.  

The issue of TEENS, Inc. owing these fees was brought up at the tail end of the last BOT meeting on August 4, when Stephen LeFaiver, the Executive Director for the nonprofit youth organization, requested a five-year payment plan for their required water and wastewater Plant Investment Fees (PIF). 

Because those fees had already been budgeted by the Town for the Utilities Departments’ needs in 2026 and 2027, Town Manager Jonathan Cain warned that, if the BOT were to grant TEENS, Inc. their request, the trade-off could result in a rate increase for all water and wastewater rate-payers. 

This matter was reported in detail in the August 13 edition of The Mountain-Ear, available at bit.ly/4g52pXz.

At that time, Cain requested the BOT members provide suggestions regarding three main questions: Should partial or full forgiveness of the PIF be awarded? Should payment of the fees be required before the center is allowed to open? And, if the Board opts for payment deferral, does 3% interest, plus using TEENS, Inc.’s existing property at 151 East Street as collateral, count as enough security to be considered an equitable deal? 

As for whether partial or full forgiveness of the fees should be awarded, the Town provided data that showcased the financial issues that would arise as a result of the loss of those funds.

Staff report  

“For scale, Nederland currently has approximately 892 water accounts and 622 wastewater accounts,” the report read. “The $246,857 water portion of the obligation is equivalent to approximately $277 per existing water account, while the $114,725 wastewater portion is equivalent to approximately $184 per wastewater account. For a customer receiving both services, the combined amount is approximately $461.”

The report goes on to state that these numbers do not indicate a proposed rate increase and are not a summary of how utility rates could potentially change. “Actual rates depend on the Town's complete financial model, including capital needs, reserves, debt, operations, consumption, and customer classes,” the report explains. 

Regarding the second question—when PIFs should be paid if TEENS, Inc. are made to be obligated—Cain reiterated that the Town has already been lenient, as typically these water and wastewater fees are collected during the building permit process, which occurred for the childcare center last year. 

It was also indicated that the Town has experienced difficulties collecting on these fees after developments are complete and the building becomes occupied, as interrupting utility services causes more problems than solves them. 

“That concern is particularly significant here,” the Town’s report reads. “Once families are relying on approximately 68 childcare spaces, discontinuing utility service would not be a practical or desirable means of collecting an unpaid balance.”

As for whether or not an escrow arrangement involving the childcare center at 750 West 5th Street, and/or the teen center at 151 East Street, is enough collateral for the BOT to accept TEENS, Inc.’s request for deferred fee payments, Town staff still needed to assess the current property value; ownership, title, and existing liens or encumbrances on those properties; the Town's lien priority; repayment and interest terms; and the Town's responsive measures regarding nonpayment.

“A missed payment would not necessarily result in the Town simply taking ownership of the property. Enforcement of a secured obligation could require foreclosure or another legal process, with associated time, expense, and uncertainty,” the report reads.

The report also notes that the Town would incur legal expenses if it were to have to evaluate TEENS, Inc.’s properties, as well as administration costs that may occur as a result of any enforcement as a result of default. It was added that the Town could require TEENS, Inc. to be responsible for those potential costs. 

Since Town staff was not recommending any formal action to the Board, the staff’s next steps for each consideration were outlined in the report. If Trustees decided to maintain the current payment agreement and require TEENS, Inc. to pay their fees before opening, Town staff would continue as they have been. If Trustees want to forgive the fees altogether, Town staff would draft the “financial and legal analysis necessary to implement that direction.”

Possible solutions

LeFaiver addressed the Board, reiterating how TEENS, Inc. is expecting a million dollars in congressional funding by December of this year, and—despite there being no certified guarantee that the funds will actually be awarded—stated that TEENS, Inc. would pay their fees in full once they had access to those funds. 

Trustee Billy Giblin asked several questions pertaining to what concessions TEENS, Inc. was willing to make, including paying interest, adopting a three-year payment plan instead of five, and making the first payment in 2026 would be tenable for the organization. 

LeFaiver explained how in 30 years of operation TEENS, Inc. has remained fiscally responsible by successfully completing yearly audits and maintaining a debt-free budget (that is, until their endeavor with building a seven million dollar childcare center). He added that TEENS, Inc. was open to all of Giblin’s suggestions, saying that any offer from the Town would be better than having to pay the fees upfront.

BOT’s decision   

The majority of Trustees were in favor of directing both TEENS, Inc. and Town staff to return to the BOT in two weeks with more information regarding the youth organization’s collateral options, and analysis as to what a three-year payment plan—with the first payment in 2026—would look like. 

Though it was suggested that this specific data include the impact the Town’s deal with TEENS, Inc. will have on Utility rates, the BOT decided not to pursue that data, as it was revealed by Trustee Topher Donahue that such an exercise would be “misleading” if it did not include the full impact of the deals the Town has made with other businesses over waiving of their PIFs.  

The Nederland Board of Trustees meets on the first and third Tuesday of every month. The next meeting is scheduled for Tuesday, September 1, 2026, at 7 p.m. and can be attended either online or in person at the Nederland Community Center. 

For more information go to: bit.ly/4x8b0yR.