Loading...
HomeMy WebLinkAbout20250602 - CC Workshop MinutesHastings, Minnesota City Council Workshop June 2, 2025 The City Council of the City of Hastings, Minnesota met in a workshop on Monday, June 2, 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, Haus, Lawrence, Leifeld, Pemble, and Vihrachoff Members Absent: None Staff Present: City Administrator Dan Wietecha Assistant City Administrator Kelly Murtaugh Finance Manager Chris Eitemiller Assistant Finance Manager Ashley DeBernardi Mayor Fasbender called the workshop to order at 5:30 pm and welcomed council members and staff for discussion about the 2026 Budget. Eitemiller presented materials that were recently shared with the Finance Committee and summarized the budget preparation schedule. Eitemiller reviewed the revenue considerations for 2026. A preliminary tax increase of 8.1% would be needed to “keep the lights on.” Home valuation was flat last year but is showing a slight increase on the average home. The Rural Fire contribution will increase $74,000. There are many cost pressures impacting the 2026 budget. These include personnel (step increases and cost of living allowance), health insurance projected at a 15% increase, and negotiations with 3 of 5 unions. Eitemiller indicated a 4% placeholder for inflationary increases. There is an increase in debt service over $300,000 because the payments on the Civic Arena Refrigeration Project were interest only in 2025. There remains a large backlog in CEP/CIP projects, but the city has been taking steps to reduce the backlog. Eitemiller indicated an increase in recent years addressing deferred maintenance, replacing fleet vehicles, increasing skim patching to extend the life of city streets, using one-time funds as available, and partnering with the county on trails for maintenance. The areas that have been unfunded or underfunded include trails/parks, fire station remodel/relocation, hydroplant decommissioning, and street projects. Larger initiatives are looming that may impact the city’s ability to focus on these unfunded/underfunded projects: Highway 61 and three water treatment plants. Eitemiller indicated that wages are a significant portion of the budget. Council discussion on keeping wage/compensation momentum going to continue to attract and retain employees. Council discussion on step increases and cost of living adjustments (COLA) and whether COLA should be offered in 2026. Some costs, like health insurance and Minnesota Paid Leave are outside the control of the city. Council is concerned about the holding of tax levels in the past which prevented some of the investments in infrastructure and that may require increases now to address.