HomeMy WebLinkAboutVIII-04 Approve Second Reading and Adoption - Ordinance Amendment - City Code Chapter 34 - Fees for Municipal ServicesCity Council Memorandum
To:Mayor Fasbender & City Councilmembers
From:City Administrator Dan Wietecha
Date:May 5, 2025
Item:Water Rates
Council Action Requested:
Second Reading and Adoption of attached ordinance increasing water rates by 10% effective
July 1, 2025.
Background Information:
The City has worked with Northland Securities to project the financial impact of constructing
and maintaining three water treatment plants to remove PFAS and nitrates from our drinking
water.
In December 2024, the City Council approved a 10% increase in water rates (3.5% to cover
general inflation and operations and 6.5% toward the PFAS/Nitrates project) and noted that an
additional increase would likely be needed mid-year, depending on funds from the East Metro
3M Settlement, other grants, and anticipated construction costs.
During its workshop April 7, the City Council discussed finances for the upcoming project. The
City Council favored financing the City’s share of construction (estimate $8.4M) with a Drinking
Water Revolving Fund loan through the Public Facilities Authority. This low-interest loan will
save nearly $1M in interest costs over the next 20 years, compared to the City issuing bonds for
the project.
The City Council favored pulling the nitrates treatment from central WTP. If we build the
“footprint” to provide space in the building to later add the treatment system, we can cut $3.1M
from the project cost. The nitrate levels in these wells (3, 5, and 7) are at levels that require
monitoring, and we currently do partial treatment on wells 3 and 5, but are not in imminent need
for nitrates treatment now.
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The City Council favored an additional 10% water rate increase effective July 1. This covers our
current projected gap as well as provides some cushion for uncertainty.Without additional
outside funds, additional significant increases are anticipated each of the next three years.
Financial Impact:
Additional revenue to cover projected debt service
Commission Discussion:
Not applicable
Attachments:
Ordinance, First Reading
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SECOND READING
CITY OF HASTINGS, MINNESOTA
ORDINANCE NO. 2025-______
AN ORDINANCE OF THE CITY OF HASTINGS,MINNESOTA
AMENDING CHAPTER 34 OF THE HASTINGS CITY CODE PERTAINING TO FEES
FOR MUNICIPAL SERVICES
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF HASTINGS,
Chapter 34 of the Hastings City Code regarding water rates is hereby amended as
follows:
Fee Schedule
Public Works Fee Changes
Current Proposed
Water Base Charges
5/8” & ¾” Meter $22.88 $25.17
1.0”Meter $57.20 $62.92
1.25”&1.5”Meter $114.42 $125.86
2.0”Meter $183.06 $201.37
3.0” Meter $343.26 $377.59
4.0” Meter $740.20 $814.22
6.0” Meter $1,601.78 $1,761.96
Irrigation Base Charges
5/8” & ¾” Meter $45.76
1.0”Meter $114.40
1.25”&1.5”Meter $228.84
2.0”Meter $366.12
3.0” Meter $686.52
4.0” Meter $1,480.20
6.0” Meter $3,203.56
$50.34
$125.84
$251.72
$402.74
$755.18
$1628.44
$3,523.92
Water Consumption
Residential Users (applies all year)
0 –15,999 gallons $1.38/1,000 gallons $1.52/1,000 gallons
16,000 –30,999 gallons $1.78/1,000 gallons $1.96/1,000 gallons
31,000 –60,999 gallons $2.87/1,000 gallons $3.16/1,000 gallons
61,000 gallons and above $5.45/1,000 gallons $6.00/1,000 gallons
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Other Users
0 –15,999 gallons $1.38/1,000 gallons $1.52/1,000 gallons
16,000 –75,999 gallons $1.78/1,000 gallons $1.96/1,000 gallons
76,000 –200,999 gallons $2.87/1,000 gallons $3.16/1,000 gallons
201,000 gallons and above $5.45/1,000 gallons $6.00/1,000 gallons
Moved by Councilmember ______________,seconded by Councilmember ______________to
adopt the ordinance as presented.
Adopted by the Hastings City Council on this ______ day of May 2025, by the following vote:
Ayes:
Nays:
Absent:
CITY OF HASTINGS
___________________________
Mary D. Fasbender, Mayor
Attest:
___________________________
Kelly Murtaugh, City Clerk
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