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HomeMy WebLinkAbout20240603 - CC Workshop MinutesHastings, Minnesota City Council Workshop June 3, 2024 The City Council of the City of Hastings, Minnesota met in a workshop on Monday, June 3, 2024, at 5:30 p.m. in the Community Room at the Hastings City Hall, 101 East 4th Street, Hastings, Minnesota. Members Present: Mayor Fasbender, Councilmembers Fox, 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 Community Development Director John Hinzman Public Works Director Ryan Stempski Mayor Fasbender called the workshop to order at 5:30 pm and welcomed councilmembers and staff. Eitemiller opened the presentation and discussion on preparation and planning for the 2025 budget. Overview Eitemiller reviewed basic revenues and expenses for the budget. At present market valuations and data to estimate property taxes are pending, but it appears that a plain “maintenance” budget to fund existing services, prior commitments, and inflation could result in a 7% to 7.5% increase in the levy. Based on last year’s property values, this would be about a $144 increase for the average residential home. He noted several other major expenses that will impact this and/or future budgets: backlog of capital projects, parks and trails plan, fire station remodel, City share of Highway 61 project, and three water treatment plants for PFAS and nitrates. PFAS Treatment Stempski explained that due the new EPA limits, the City will need to construct water treatment plants to remove PFAS contamination from the drinking water. Plans include treatment to also remove nitrates which are at elevated levels. This will be a lengthy and expensive project. The total construction estimate is $68.9M, and ongoing operations and maintenance will run upwards of $1M annually. The plan is to construct one WTP per year for three years, proposed to start in early spring 2025 in order to budget the water rate increases to begin the first of the year. With a five year deadline by the EPA, there is little time to delay. Although our project seemed to be well received, the legislative session ended without a state bonding bill. We have applied for other funding an intend to seek state bonding support next