HomeMy WebLinkAboutVIII-04 2nd Reading - Adopt Ordinance - City Code Chapter 34.03 - Fee Schedule
City Council Memorandum
To: Mayor Fasbender & City Councilmembers
From: Chris Eitemiller, Finance Manager
Date: December 15, 2025
Item: Second Reading of Chapter 34: Fees
Council Action Requested:
Council is requested to hold the second reading and adoption of an ordinance amendment
adjusting various City fees.
There are some adjustments from the first reading that Council saw in the December 1, meeting.
There are 8 fees under the “Other Public Works Fees” area. It was decided that two will not be
changing in 2026, and the others will not be changing as much as originally planned.
Background Information:
Utility fees
In 2023, the City worked with Northland Securities on a Utility Rate review which looked at the
sustainability of our utility funds to cover projected capital needs over the next several years. The
review recommends rate increases for water, sewer, and storm water.
In accordance with this review, staff recommends a 3.5% operational increase in water rates, plus
an additional 6.5% increase to build revenue associated with future debt payments for the second of
three water treatment plants that will be needed to meet federal drinking water standards. Another,
yet-to-be-determined rate increase is planned for July 2026 once total non-bond revenues are
known.
A 4.5% increase is recommended for our sewer rates. This adjustment keeps the fund in line with
inflationary increases to expenditures and assist with funding the infrastructure improvements
and capital asset purchases in the coming years.
A 4% increase is also recommended for our Storm Water Fund. The Storm Water Fund’s
future capital projects are driving this proposed increase.
Storm Water and Sewer rate increases match what was implemented for 2025, due largely to
increased capital expenditure projections. Water’s operational increase matches what was
implemented for 2025. The additional increase is required to fund the new water treatment
plant planned to begin construction in 2026.
Other Public Works fees
The Public works department implemented a number of maintenance-related increases in the
Water utility in 2025. These fees include meter replacements, bulk water purchases, and
charges to turn on or off Water services. The original plan to increase all of these fees by
3.5% has changed.
Rather than increase the meter replacement and bulk water purchases fees in 2026, it has been
decided to leave these fees the same for 2026 and have a more detailed discussion with Public
Works as part of the 2027 budget process.
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The other rates will change in 2026, but they will not be changing as much as originally
planned. These fees help offset costs for staff and equipment. More detailed discussion on
these fees will also be included as part of the 2027 budget process.
Parks fees
The Parks department requests increasing several fees. Included are pool rental, birthday parties,
swimming lessons and staff costs for the aquatics center. Also included are adjustments to parks
shelters, and removing the amphitheater rental charge. This last charge is not being used, so staff would
like to remove it for clarity.
Financial Impact:
Utility Fees
The proposed rate increase is included in the 2026 budget. It is anticipated this increase will
create a revenue stream from each of the utility funds to meet operational increases as well as
increased debt service payments for the new water treatment plants, for which construction began
in 2025. Rate increase requests in future years will be evaluated based on the fund health and are
expected to be in line with inflationary measures and capital projects.
If approved, the updated fee structure will be effective with the January 2026 billing.
Residential Impact Chart – quarterly bill
Other Public Works Fees
The other proposed fee changes for Public Works would not generate substantial revenues and are
intended to maintain a level of revenue sufficient to offset cost increases.
Parks fees
Similarly to the other proposed fee changes for Public Works, these Parks fees would not
generate substantial revenues and are intended to maintain a level of revenue sufficient to
offset operating costs.
Advisory Commission Discussion:
N/A
Council Committee Discussion:
The November 24th Finance Committee meeting included discussion on the utility funds and rate
increase requests.
Attachments:
Ordinance amendment and full Fee Schedule changes
2025 2026 Variance
Water-Consumption 22.80$ 25.08$ 2.28$
Water-Fixed 25.17$ 27.69$ 2.52$
MN Test Fee 2.43$ 3.81$ 1.38$
Water-Total 50.40$ 56.58$ 4.80$
Sewer-Consumption 72.15$ 75.40$ 3.25$
Sewer-Fixed 21.20$ 22.15$ 0.95$
Sewer-Total 93.35$ 97.55$ 4.20$
Storm Water-Fixed 23.31$ 24.24$ 0.93$
Total Bill 167.06$ 178.37$ 11.31$
Average Single Family Home
City Average Based on 15,000 Gallons
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SECOND READING
CITY OF HASTINGS, MINNESOTA
ORDINANCE __________
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 AS FOLLOWS:
Chapter 34 of the Hastings City Code is hereby amended as follows: Section 34.03
Fee Schedule
Public Works Fee Changes
Current Proposed
Water Base Charges
5/8” & ¾” Meter $25.17 $27.69
1.0” Meter $62.92 $69.21
1.25” & 1.5” Meter $125.86 $138.45
2.0” Meter $201.37 $221.51
3.0” Meter $377.59 $415.35
4.0” Meter $814.22 $895.64
6.0” Meter $1,761.96 $1,938.16
Irrigation Base Charges
5/8” & ¾” Meter $50.34 $55.38
1.0” Meter $125.84 $138.42
1.25” & 1.5” Meter $251.72 $276.90
2.0” Meter $402.74 $443.02
3.0” Meter $755.18 $830.70
4.0” Meter $1,628.44 $1,791.28
6.0” Meter $3,523.92 $3,876.32
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Section 34.03
Water Consumption
Residential Users (applies all
year)
0 – 15,999 gallons $1.52/1,000 gallons $1.67/1,000 gallons
16,000 – 30,999 gallons $1.96/1,000 gallons $2.16/1,000 gallons
31,000 – 60,999 gallons $3.16/1,000 gallons $3.48/1,000 gallons
61,000 gallons and above $6.00/1,000 gallons $6.60/1,000 gallons
Other Users
0 – 15,999 gallons $1.52/1,000 gallons $1.67/1,000 gallons
16,000 – 75,999 gallons $1.96/1,000 gallons $2.16/1,000 gallons
76,000 – 200,999 gallons $3.16/1,000 gallons $3.48/1,000 gallons
201,000 gallons and above $6.00/1,000 gallons $6.60/1,000 gallons
Sewer Rates
Sewer Fixed Charges $21.20 $22.15
Sewer Consumption Charge
(based on metered use during
winter billing quarter)
$4.81/1,000 gallons $5.03/1,000 gallons
Storm Water Utility Rates
Low Density Residential $23.31/lot $24.24/lot
Medium Density
Residential
$12.81/lot $13.32/lot
High Density Residential $90.85/acre $94.48/acre
Manufactured Housing $69.89/acre $72.69/acre
Commercial/Office $111.82/acre $116.29/acre
Industrial $97.83/acre $101.74/acre
Public/Institutional Exempt/acre Exempt/acre
Golf Course $20.99/acre $21.83/acre
Open Space/Vacant $23.31/lot $24.24/lot
Agricultural $23.31/lot $24.24/lot
MN Testing Fee $2.43/quarter $3.81/quarter
Other Public Works Fees
Current Proposed
Water Shut Off
During regular work hours (7:00
a.m. to 3:00 p.m.)
$55.00 $56.00
Outside regular work hours $250.00 $258.00
Water Turn On
7:00 a.m. to 3:00 p.m. No charge if same day as a turn
off
No change
7:00 a.m. to 3:00 p.m. $55.00 $56.00
Outside regular work hours $250.00 $258.00
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Winter Emergency Water
Turn off – Dec 1 – April 15
7:00 a.m. to 3:00 p.m. No charge if same day as a turn
off
No change
7:00 a.m. to 3:00 p.m. $110.00 $113.00
Outside regular work hours $250.00 $258.00
Winter Water Turn On
7:00 a.m. to 3:00 p.m. No charge if same day as a turn
off
No change
7:00 a.m. to 3:00 p.m. $110.00 $113.00
Outside regular work hours $250.00 $258.00
Equipment (plus operator fees)
Pickup Truck $50.00/hour $51.00/hour
Staff time for call-outs
Public Works Operator
7:00 a.m. to 3:00 p.m. $50.00/hour $51.00/hour
Outside regular work hours -
minimum 2-hour charge
$75.00/hour $77.00/hour
Parks Fee Changes
Current Proposed
Aquatics Center
After Hour Rental
Pool Rental $140.00–1-hour rental+staff cost $150.00–1-hour rental+staff cost
Pool Rental $0 $270.00-2-hour rental +staff cost
Staff Costs
0-50 guests $120.00 - 1 hour rental $130.00 – 1 hour rental
51 + guests $175.00 - 1 hour rental
0-50 guests $0 $226.00 – 2-hour rental
51 + guests $0 $322.00 – 2-hour rental
Birthday parties
Option A
0-10 guests $165.00 $185
Lunch per person $5.00 $6.00
Option B
0-10 guests $115.00 $125.00
Lunch per person $5.00 $6.00
Swimming Lessons
Private $70.00 for 3, 30-minute lessons $85.00 for 3, 30-minute lessons
Monday through Thursday
classes
$55.00 for eight, 30-minute
lessons
$65.00 for eight, 30-minute
lessons
Tuesday and Thursday classes $55.00 for eight, 30-minute
lessons
$65.00 for eight, 30-minute
lessons
Park/Shelter Rental
Open Air Shelters: Roadside,
Vermillion Falls, Pioneer Parks
Resident $50.00 + tax $60.00 + tax
Non-resident $60.00 + tax $70.00 + tax
Enclosed Shelters: Lions,
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Wallin Parks
Resident $60.00 + tax $70.00 + tax
Non-resident $70.00 + tax $80.00 + tax
Levee Park Request removal from fee
schedule
Amphitheater
Resident $110.00 + tax $0
Non-resident $130.00 + tax $0
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Moved by Councilmember _________________ , seconded by Councilmember ________________
to adopt the ordinance as presented.
Adopted by the Hastings City Council on this 15th day of December 2025, by the following vote:
Ayes:
Nays:
Absent:
CITY OF HASTINGS
_____________________________________
ATTEST:
Mary Fasbender, Mayor
_______________________________
Kelly Murtaugh, City Clerk
I hereby certify that the above is a true and correct copy of the Ordinance presented to and
adopted by the City of Hastings, County of Dakota, Minnesota, on the 15th day of December
2025, as disclosed by the records of the City of Hastings on file and of record in the office.
Kelly Murtaugh, City Clerk
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