HomeMy WebLinkAbout20250407 - CC Workshop MinutesHastings, Minnesota
City Council Workshop
March 17, 2025
The City Council of the City of Hastings, Minnesota met in a workshop on Monday, April 7,
2025,at 5:30 p.m. in the Volunteer Room at the Hastings City Hall, 101 East 4th Street, Hastings,
Minnesota.
Members Present:Mayor Fasbender, Councilmembers Beck,Lawrence, Leifeld,and Pemble
Members Remote:Councilmember Haus
Members Absent:None
Staff Present:City Administrator Dan Wietecha
Assistant City Administrator Kelly Murtaugh
Public Works Director Ryan Stempski
Mayor Fasbender called the workshop to order at 5:32 pm and welcomed staff and
councilmembers to the workshop about PFAS funding.Wietecha opened the meeting with an
overview of the agenda: Method of Financing, Addressing Nitrates, and Impact on Water Rates.
Wietecha provided an overview of the cost estimates. The cost estimate is $30.8 M for the
Central Water Treatment Plant. Much of the cost is covered through a MPCA Planning &Design
grant, 3M Settlement funds, Emerging Contaminants Grant, and water rate increase implemented
in January 2025. The remaining uncovered amount of the estimate is $6.1M.
Options for Financing the remaining portion of the project:
•Public Facilities Authority Loan: low interest with a savings of almost $1M, 20-year
repayment term, coordinates with requirements of the Emerging Contaminants Grant,
repaid through water rates, potential concern with cash flow.This is the recommended
option.
•Bonding: potential 25-year repayment term, could be repaid through water rates or
general fund (taxes).
Council discussion clarifying terms, impacts to the city and residents, and differences between
the options.Council discussion on the repayment through water rate increases versus property
tax increases. Council recommendation that though water rates will increase, the loan through
the Public Facilities Authority is a better direction because the impact will be shared among all
users of water in the City and the low interest rate saves some of the interest expense over time.
Stempski provided an overview of the plans for building the footprint for full treatment of
nitrates at the Central Water Treatment Plant. Stempski indicated that putting in the nitrate
footprint during construction, has less cost for construction than adding it in the future while
waiting on the treatment equipment would cost the same in the future. The current nitrate
treatment plant can continue to be utilized to partially treat the area wells (3 & 5)until the full
treatment is needed for Well 7 or regulations change.Stempski projected that the cost for
delaying the nitrate foundation construction more than doubles the cost for construction and
system installation.
Council discussion around current nitrate levels at the various wells and how that is being
managed at this time. Council recommended the construction of the nitrate footprint but not
installing the system until the future, ensuring the design accommodates the system without
impacting the building. Council discussion related to the value in preparing for the inevitable
future need and reducing expense for the future city residents.
Wietecha reviewed the water rate changes for January and the projected additional water rates
increase in July. The stepped increase was implemented due to some of the outstanding questions
regarding funding opportunities when water rates were set for January. The City has learned that
some of the funding options are no longer available. Council discussed adding the nitrate
footprint but not installing the system. Therefore, the need could be covered by a 5% increase in
water rates in July. If the Emerging Contaminants Grant (federal) is at risk, the need could be
covered by a 10% increase.
Council discussion about the July water rate increase of 5% -10%. The choice impacts the
January 2026 estimated rate. Council discussion about impact of tariffs and the economy on the
bids. Stempski indicated that there is a contingency built into the estimate to address changes in
anticipated bidding. Council discussion on the rate and if the federal grant still comes through,
the additional water rates collected will reduce future rate increases.If state bonding or other
funds become available, future rate increases could be reduced. Council recommendation
looking at a 10% increase to water rates in July 2025.
Council discussion around the City seeking funding from other sources and how the plans
continue to change as the sources either come through or do not.The ability to access the 3M
Settlement funds has improved the funding picture and is still being assessed for the other wells.
The requirements for construction to address the PFAS levels by 2029 will not change based on
funding and the City needs to continue progress on the projects.
ADJOURNMENT
Workshop adjourned at 6:49 p.m.
__________________________________________________________
Mary D. Fasbender, Mayor Kelly Murtaugh, City Clerk