NEDERLAND— The Nederland Board of Trustees (BOT) met Tuesday, December 2 to give their final vote on the 2026 Town Budget. First, they entered into a discussion regarding new Colorado legislation requiring municipalities to either adopt ordinances authorizing the use of graywater in new construction, or opting out from permitting such use. 

Graywater

“Graywater” is defined as the portion of wastewater from household use, including from bathroom sinks, bathtubs, showers, and laundry machines, excluding water from toilets, urinals, kitchen sinks, and dishwashers. 

The recent legislation allows for graywater to be collected through processes that filter out such contaminants as human waste and food, as well as hazardous chemicals. 

Effective January 1, 2026, HB 24-1362 establishes the general authorization for individuals to install graywater treatment framework, though indoor systems are only permitted for new construction.

Municipal governments are given the option to opt out, to set up regulations and adopt “graywater control programs,” or to strictly prohibit graywater use. 

 HB 24-1362 applies to residential, commercial, and institutional buildings, which, according to the Agenda Informational Memorandum (AIM) prepared by Town Attorney Jennifer Madsen and Utilities Manager Andrew Bliss, includes “hotels, lodges, multifamily developments, offices, and recreation centers.”

These facilities are permitted to collect and reuse graywater, allowing hotels and recreation centers to reuse shower water, and offices and schools to reuse bathroom sink water. However, kitchen, janitorial, and industrial process water are excluded. 

Neighboring municipalities Boulder, Lyons, and Greenwood Village have opted out and directly prohibited graywater use due to “limited staff capacity, potential water-rights implications, and uncertainty about administrative costs versus conservation benefits.”

It was noted within the AIM that Town staff had yet to research the technical or fiscal impact to Town if graywater use were to be permitted. Staff recommended that, if the Commission decides to proceed with allowing graywater use, Nederland’s water counsel should be consulted about whether such actions are allowed under the Town’s water rights augmentation plan. 

Trustee Tania Corvalan was generally in favor of residents being permitted to set up their own graywater systems, though she questioned whether the Town’s water rights would permit it.

Bliss confirmed that the Town’s water attorneys were wary of allowing graywater use, but noted any further explanation would have to be provided by such counsel. 

Cain suggested that more clarity as to why the State of Colorado appears to be promoting graywater use may be made available over time, reiterating that there was no urgency to this decision and that Town staff could bring the matter up on a future agenda and provide more information.

Corvalan also suggested that the Sustainability Advisory Board should review the matter, as it is in their wheelhouse. 

Ultimately, despite some Trustees expressing curiosity about the prospect of allowing graywater use and researching collection systems, the Board decided that the effort was not worth the staff time, considering there were no examples of such related municipal ordinances to review.  

Budget final vote

The Board was tasked with giving their final vote on the Town’s 2026 Budget, meeting their statutory obligation to adopt the budget before December 15.

Town Treasurer Rita Six previously updated Trustees that, due to Boulder County’s rates increasing, Nederland’s sales tax will be increasing from 9.435% to 9.585% starting January 1, 2026. 

Nederland’s Sewer Fund is projected to operate in the black in 2026 with a budget of $118,618, with a projected increase to the fund balance of $225,094. The Water Fund is expected to operate in the red in 2026 with a negative balance of $75,883, but with a projected increase of $305,501. 

The Streets Fund is budgeted to spend $217,201 in 2026, leaving a fund balance of $3,177; and the Parks Fund is estimated to earn $60,000 in marijuana tax revenue in 2026, and is budgeted to spend $63,695. 

The Nederland Downtown Development Authority’s budget shows projected expenditures for 2026 to be at $488,100; and the Town’s contract with Boulder County Sheriff’s Office will increase by 5.1% in 2026, resulting in a total cost of $931,629.

Since the BOT’s last review of the draft budget on November 18, the final property tax assessment from Boulder County has shown that property tax revenue decreased by $19,007, increasing the Town deficit to $337,099.

Also, the $20,000 roof repair project for the Nederland Community Center, as well as the $7,500 structural assessment for the Center’s west wing, are scheduled to be completed in 2026, changing the Center’s net assets from $66,516 to $39,016. 

As Trustees had been discussing the 2026 Town Budget for several months, there were no questions or further comments. The BOT voted unanimously to adopt Resolutions 2025-28, 29, and 30, approving the budget, fee schedule, and budget mill levy. 

The Nederland Board of Trustees meets on the first and third Tuesday of every month. The next meeting is scheduled for Tuesday, December 16 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.