NEDERLAND —  The Town of Nederland’s ongoing attempt to purchase Eldora Mountain Resort has created a $1.9 million general fund deficit, a shortfall Town officials say must be addressed by December as work on the 2027 budget moves forward. 

Nederland’s Board of Trustees (BOT) formally acknowledged the deficit this week during its Monday evening meeting, discussing potential ways to address the shortfall including transferring money from other town funds, consolidating existing accounts, and the generation of additional revenue. 

Without intervention, the general fund balance is projected to end the year at negative $2.1 million, according to Miranda Gordon, interim Town Manager. 

“There was kind of a misalignment on how to account for Eldora-related expenditures,” Gordon said. “The reality is, at the end of the day, under governmental accounting practices, you have to account for all Eldora transactions.” 

Nederland’s efforts to buy Eldora from ski resort owner and operator POWDR began nearly two years ago. In April of this year, the asset purchase agreement’s anticipated closing date passed without a finalized deal. In the months since, the acquisition effort has drawn mounting criticism from residents regarding the lack of transparency and concerns about the mounting bills that have created skepticism over the Town’s ability to afford the purchase. 

Monday’s budget discussion coincided with the consideration of a resolution submitted by Nederland resident Dallas Masters addressing those concerns. Masters, an aerospace engineer and former Nederland trustee, has over the past several months emerged as a vocal critic of what he believes to be the board’s uncapped spending and lack of transparency. 

“The big issue is really the Town board … failed to pay attention, failed to comprehend the risk that they were putting the town under by expending all this money for the acquisition,” Masters told The Colorado Sun in October. 

Masters’ proposed resolution would establish financial controls, cap further spending on the acquisition, require regular reporting, and ensure that the Town complies with state budget statutes in order to protect the general fund as acquisition negotiations continue. 

It includes language that would address the budget deficit through a formal loan from the Water and Sewer fund to the general fund. 

While the board appeared generally willing to adopt the resolution, trustees suggested changing the verbiage of “loan.” 

According to Town Attorney Jennifer Madsen, an interfund loan would not solve the budget problem. Since a loan needs to be repaid, even an interfund loan would leave the budget in a deficit and therefore out of compliance with state budget laws that prohibit local governments from operating in a deficit (dlg.colorado.gov/budget-requirements).

Alternative solutions to Masters’ proposed loan were suggested by Town staff.  Gordon outlined three primary solutions: the consolidation of the community center fund into the general fund, which would add roughly $900,000 to the general fund; a transfer of up to $2 million from Water and Sewer funds; or the dissolution of the Nederland Downtown Development Authority, which has an account balance of approximately $1.9 million. 

Each option would require an extensive review of the relevant ballot language to ensure the Town does not use restricted funds for unauthorized purposes, Gordon said. 

The proposals drew what could at best be described as a lukewarm response from residents.  

“Gosh, this is very depressing,” one resident said, referencing the proposed consolidation of the community center. “People like and value the community center. They understand what it is, and they will work to support it. The community needs the community center, and it should be its own entity.” 

Trustees did not take formal action Monday, but Gordon said the Town must identify a solution to address the deficit in the next several weeks in order to meet the 2027 budget timeline and comply with state requirements. 

In addition to prohibiting the passage of budgets that are operating in a deficit, state statute requires local governments to certify the next year’s spending plan by December 31 (dlg.colorado.gov/budget-calendar). If the deadline is missed, the state assumes control and implements a budget that contains a 10% reduction in expenditures from the year prior. 

“We don’t have a choice,” Trustee Kristopher Lawson said. “We have a $2 million shortfall, and we're saying that these are our options, and each one of them has certain restrictions. We don't have a choice but to investigate what the restrictions are on all three. We absolutely have to move forward on that.” 

In addition to considering transfers between existing funds, Gordon outlined potential opportunities to increase annual Town revenue, including paid parking, speed cameras, and increased sustainability fees for building permits.

Trustees were less receptive to suggested revenue-generating measures, particularly the implementation of paid parking, because of overwhelming opposition from the business community. 

“Our business owners do not want it and I know this from interacting with them,” Trustee Andrew Joslin said. “Actually, I’ve spoken with a lot of them. We have over 80 business owners just on First Street that are absolutely not [in favor].”

However, some of the board did acknowledge a need for more revenue outside of the budget issues posed by the ongoing Eldora acquisition. 

“There has been a fiscal and structural imbalance in this town for decades,” Trustee Andrew Dewart said, adding that the focus should not just be on balancing the budget but on figuring out additional sources of revenue generating solutions for the Town.

Spending cuts, including the possibility of staff layoffs , were also put on the table as potential last-resort options. 

Staff will present possible solutions to the budget deficit at the November 17 board meeting. Redrafted versions of Masters’ proposed resolution will also be considered via consensus of the board. 

The Nederland Board of Trustees meets on the first and third Tuesday of each month. The next meeting is scheduled for Tuesday, November 17, 2026, at 7 p.m. and can be attended either online or in person at the Nederland Community Center. 

For more information go to: townofnederland.colorado.gov/board-of-trustees.