HomeMy WebLinkAbout20250902 - CC Workshop MinutesHastings, Minnesota
City Council Workshop
September 2, 2025
The City Council of the City of Hastings, Minnesota met in a workshop on Tuesday, September
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 provided an overview of the presentation
of the 2026 budget, including key changes, revenues and expenses, and projected CIP/CEP
investments.
The budget includes a recommended 8.4% levy increase for 2026, which translates into $162 on
a median value home. Levy projections for cities in Dakota County range from 5% to 19%.
Eitemiller reviewed the historical tax rates for the city and noted that a 1% levy equates to
approximately $217,299.
Eitemiller reviewed key expenses: planned changes in personnel,estimated 20% increase in
employee health insurance,union contract settlement, and wage scale steps. Additionally, there
are inflationary increases across the city for software, hardware, materials and supplies.Council
clarification on union contracts and health insurance.
CIP/CEP Investments
Infrastructure investments include Well 9 and pumphouse, neighborhood project, mill and
overlay gate valve replacements and sewer trunk lining/cleaning. Asset Management projects
include Public Works roof repair, Vet’s Park lighting, parks/trail work, plow truck, and fleet
vehicle replacement.
Eitemiller gave the Utilities overview with projected increases in rates: phasing of additional
water rate increases over the next year by 10% every 6 months; sewer 4.5%; and stormwater 4%.
Utility capital item investments include the Eastern Water Treatment plant, utilities portion of the
neighborhood project, sewer rehabilitations, Well # 9/pump house, SCADA upgrade and sewer
lift station and pump controls.
Bonding Projects will continue to include the neighborhood project (parts of Pleasant and 4th
Street), the Eastern Water Treatment Plant with connection to the Veterans Home, and Well #9
and pump house. Council discussion on location for Well #9 needed for firm capacity of water.
Wietecha indicated that there was extensive testing several years ago and identified Wallin Park
as the optimal location. It likely has PFAS and will be tested for possible connection to 3M
settlement funds.Council discussion on meeting the needs of a growing population.
While not in the 2026 budget request, a new Fire Engine that is on CIP/CEP list for 2028 would
need to be ordered three years in advance, if approved. No funds are required in advance,but the
order would lock in the price at approximately $1.25M. With anticipated price increases, this
would save the city several hundred thousand dollars. Delivery anticipated late 2028/early 2029.
Communication about the budget recommendations will begin with a press release following the
approval of the preliminary levy by Council. Key messages about the budget will be available to
council and staff to explain the budgetary priorities. Information will be disseminated via the
Dakota County mailing, budget-at-a-glance, through interviews, social media and the newsletter.
Eitemiller noted that many of the budget recommendations support the strategic plan adopted by
Council.
Eitemiller reviewed the next steps in setting the preliminary levy (by end of September), Truth in
Taxation public hearing (December 1), and final adoption of levy and fee schedule (December
1or 15).
Council discussion on how employees progress in wage scale steps and determination of COLA.
Council discussion of comparable cost of living increases as well as the increased costs in other
areas, while being fiscally responsible. Discussion about positions requested that did not get
recommended and overtime rates that might signal a need for additional staff. Council discussion
on what was asked for in the budget requests but was not recommended in this budget.Wietecha
indicated that there are personnel requests that will likely be coming in the next few years to
respond to community needs and the Strategic Plan. Council discussion on the importance of
keeping everything running while addressing the big issues (PFAS) that have emerged.
ADJOURNMENT
Workshop adjourned at 6:45 p.m.
__________________________________________________________
Mary D. Fasbender, Mayor Kelly Murtaugh, City Clerk