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HomeMy WebLinkAbout20240903 - CC Workshop MinutesHastings, Minnesota City Council Workshop September 3, 2024 The City Council of the City of Hastings, Minnesota met in a workshop on Tuesday, September 3, 2024, 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 Fox, Lawrence, Leifeld, Pemble, and Vihrachoff Members Absent: Councilmember Haus Staff Present: City Administrator Dan Wietecha Assistant City Administrator Kelly Murtaugh Finance Manager Chris Eitemiller Police Chief Dave Wilske Community Development Director John Hinzman Mayor Fasbender called the workshop to order at 5:30 pm and welcomed councilmembers and staff for discussion about the 2025 Budget. Eitemiller provided an overview of what will be presented at the workshop to support the budget request. Eitemiller reviewed the key changes in revenue and expenses. The average proposed increase in tax levies in cities in Dakota County is 8-10%. This budget proposes a 7.5% increase in the levy for the upcoming year, resulting in a balanced budget. The impact of this increase on the median value home is $106 for the year. Other revenues come from the Rural Fire Association, ISD 200 and rate increase at the Civic Arena. Staff changes include hiring the 2 additional firefighter/paramedics to round out commitment to 6 positions over three years, a second school resource officer, and contract support for engineering. Health insurance is anticipated to increase by approximately 10%, and the proposed cost of living adjustment is proposed at 3.5%. Inflationary increases for services and supplies and some line item increases that the City is aware of currently are included. There is an increase to debt service for the City Hall/Civic Arena project. Infrastructure projects included in the budget are the City portion of traffic signal replacement on Hwy 55 at Pleasant and Westview. The neighborhood project, water tower reconditioning, and sewer lining program are also included for 2025. Asset management is also a focus of the 2025 budget. Deferred and preventative maintenance, pool gutters at Aquatic Center, fleet vehicle replacements, plow/dump for PW, brush truck for Fire, arena lighting and Zamboni room roof are recommended for inclusion in the budget. Eitemiller reviewed the historical tax rate, levy, and tax capacity for the last 10 years. The preliminary tax levy impact on a median value residence in the city would result in a $106 increase in taxes paid to the city. The fiscal disparities increased, reducing the tax impact by $26. One per cent levy equates to $200,499.