At its Sept. 3 meeting, the Hastings City Council approved a preliminary 2025 Budget of $42.2 million and set a preliminary property tax levy of $20,049,930 million to invest in improved water treatment, public safety, asset preservation and operational efficiency. The Council also scheduled a Truth in Taxation public hearing for Monday, Dec. 2 at 7 p.m.

The proposed property tax levy represents a 7.5% increase over 2024. A homeowner with a median value home ($313,300) will see an estimated annual property tax increase of $106, or $8.83 per month, on the city’s portion of property taxes.

The proposed levy increase is lower than other cities in Dakota County, which are estimating unofficial increases averaging 8-10%.

“The city continues to invest in public safety, aging roads, necessary equipment assets and our staff. The main things driving the increase are asset management, public safety, and clean and safe drinking water,” said City Administrator Dan Wietecha.

The city expects to use bond funds of $4.2 million for the 2025 Neighborhood Street Project. The city would also bond up to $20.6 million for construction of the first of three water treatment plants to address PFAS and nitrate contaminants in the drinking water supply.

Preliminary utility rate increases were set at 37.3% for water, 4.5% for sewer, and 4% for stormwater.

Budgeted increases include:

• Hiring two additional full-time firefighter/EMTs.
• 50% funding toward a second School Resource Officer.
• Contractual fees for engineering support for upcoming infrastructure projects.
• 10% estimated cost increase for employee health insurance premiums.
• Debt service from prior years.
• General inflationary increases.

  Specific projects will require the following funding commitments from the city:

  Infrastructure

• Water Treatment Plant No. 1 - $20.6 million
• Traffic signal replacements on Trunk Highway 55 - $550,000
•  Neighborhood Project - $4,200,000
•  Water Tower Reconditioning - $1,600,000
•  Sewer Pipelining - $450,000

• Asset Management

• Facilities Deferred and Preventive Maintenance - $81,000
•  New Pool Gutters at the Aquatic Center - $200,000
•  Fleet Vehicle Replacements (five-year rotation) - $900,000
•  Plow/Dump Truck for the Street Department - $300,000
•  Brush Truck with Plow for Fire/EMS department - $150,000
•  Arena Lighting and Zamboni Room Roof - $83,000

Cost-cutting and efficiency measures were reflected in the proposed budget and levy and included ongoing emphasis on asset management, which saves the city money in the long term, and prioritization of capital improvement projects and expenses. A number of operating expenses, totaling $320,000 were reduced by departments to help contain cost increases. The capital budget benefits from over $750,000 in cost savings.

The Council also approved a proposed 2025 HEDRA Special Levy subject to the limit of 0.185 percent of the taxable market value. This levy is used for economic development activities that help grow key areas of the city such as the Vermillion Corridor, downtown and the Industrial Park.