NEDERLAND - On Tuesday, May 6, 2025, the Nederland Board of Trustees (BOT) discussed the prospect of creating a structured payment policy for the water infrastructure fees that often hinder local development. The Town’s current policy dictates that these high fees must be paid in full once initial building permits are issued. 

Before the start of their official meeting, the Board met for a closed Executive Session during which legal advice was sought to “instruct negotiators regarding Town owned property and the development for housing”; “regarding property in the industrial district”; and “regarding an amendment of a lease agreement with TEENS, Inc.”

The future of PIFs

Town Administrator Jonathan Cain led Trustees in the discussion as to whether the Town should allow for Plant Investment Fees (PIF) to be paid at a later point in the development process, and whether to be paid in installments. 

Section 13 - 59(a) of Nederland Municipal Code allows for PIFs to be deferred at the Board’s discretion, and in cases of “unusual and extreme hardship.”

The Agenda Information Memorandum, prepared by Cain, states that, after the Town’s previous experience of having entered into such an agreement, a more formal policy is required “to ensure consistency, transparency, and protection of the Town’s financial interests.”

Cain also provided several suggestions for a structured payment policy, including setting fixed terms of three to five years, and allowing for use-based, tiered, or targeted deferrals. 

When asked to elaborate on past special agreements, Cain reiterated that Town staff would prefer to move away from “one-off deals,” and that specific terms and formal criteria for a structured payment plan would need to be created in order to ensure an overall “fair and consistent” process. 

To the question of whether there was enough demand for this compared to the cost of staff time—which Cain had estimated to be roughly 10 to 15 hours, including Town Attorney time—Community Planner Britt DeMinck answered that she does get questions from homeowners regarding structured PIF payments, especially in terms of accessory dwelling units and affordable housing development.

Utilities Department Manager Andrew Bliss was also in favor of the Town looking further into developing a structured payment plan, despite being skeptical. He based his opinion on previous experience and on feedback from other municipalities. 

Trustees mostly agreed that the matter could be tabled until after their work on the 2025 - 2026 Strategic Plan is complete.

Two members of the public spoke in favor of a structured PIF payment plan, noting that the expense of such fees, and the requirement to pay them all up front, are a disincentive to both personal homeowners and to major developers. 

Though the Board agreed that the issue is important, they still tabled the matter until after the development of their Strategic Plan, and after the release of the final results of the 2025 Water and Wastewater Rate Study.

Bliss had previously presented Trustees with results of the Rate Study on January 21. During that meeting, it was reported that PIF fees are expected to increase by 5% in 2025, as are both Water and Sewer rates. 

As PIF fees are typically based on meter size, a 3/4-inch meter would result in a Water PIF of $46,285 in 2025, and a Sewer PIF of $21,511. A 1-1/2-inch meter results in a Water PIF of $154,284 and a Sewer PIF of $71,703. A 4-inch meter launches the fees up to $771,427 for Water, and $358,517 for Sewer. 

It was also stated that the factors contributing to the rate and PIF increases include an update to the Water and Wastewater Capital Improvement Plans, which involves the $3.8 million cost of a proposed Nederland Reservoir. 

2026 budget
Cain also presented an informational update regarding Town staff’s efforts to plan, schedule, and begin implementing the 2026 Town Budget process, which plans to implement broader public engagement, alignment with the goals laid out in the BOT’s upcoming Strategic Plan. Staff also plans a new budget process for ensuring ADA compliance.  

With the Town’s audit to be intentionally completed earlier than usually scheduled, Cain expects to have the 2026 Town Budget completed by mid-November, providing plenty of room for adjustment before the state law-mandated final adoption date of December 15.  

Town staff’s tentative schedule for the 2026 budgetary process begins with a presentation of the Town’s audit and a “mid-year financial review” to take place on August 5, followed by a special Work Session with the BOT on August 12.  

A second Work Session is planned for October 14, followed by a “pre-draft review” on October 21, a formal budget presentation to the Board on November 4, and a final public hearing and potential adoption of the budget on November 18. 

Downtown Subarea Plan
The Board was tasked with voting on the final draft of the Downtown Subarea Plan, which is intended as a “blueprint” of how to implement Nederland’s vision and goals for downtown. It was developed by Studio Seed in conjunction with SE Group and the development of the Town’s Comprehensive Plan. 

The Planning Commission voted to recommend approval of the DSP on Wednesday, April 23. Full coverage of that meeting can be read in this edition of The Mountain-Ear. 

After brief discussion, during which Trustees asked for clarification on the building height cap, the plan recommends the increase of the cap from 35 feet to 42 feet.

There was also question as to why the Wolf Tongue Mill area was split into different zones on the land use map of the downtown subarea. Cain replied that the recommendation from Studio Seed and SE Group may include different options for that property other than split zoning, such as an overlay district. 

Cain reiterated that the plan includes recommendations for parking solutions, as well for trail connections and pedestrian infrastructure improvements which align with the recently approved and adopted Multimodal Transportation Plan. 

The BOT voted unanimously to approve Resolution 2025-09, officially adopting the Downtown Subarea Plan. 

Next steps include the Nederland Downtown Development Authority (NDDA) officially adopting the plan as their Plan of Development, more public outreach to educate about the plan, and the implementation of a five-year review cycle to ensure the plan continues to meet the needs of the community.

Liaison to advisory boards

Trustees also voted to approve a change in BOT liaison positions for two of the Town’s advisory boards. Trustee Tania Corvalan was appointed as liaison to the Board of Zoning Adjustment, replacing Trustee Kristopher Larsen, who was appointed to Corvalan’s previous position as liaison to the NDDA. 

The Nederland Board of Trustees meets on the first and third Tuesday of every month. The next meeting is scheduled for Tuesday, May 20, 2025, 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.