The Hastings City Council and City of Hastings have revealed the initial 2025 budget during last week’s Hastings City Council meeting. The budget calls for the city to have $42.2 million dollars and a tax levy of $20,049,930 that would be used to invest in water treatment, public safety, asset preservation and operational efficiency.
The proposed tax levy represents a 7.5% increase for 2025, with the caveat that it is actually the lowest increase in Dakota County as all other communities are experiencing an 8-10% increase. The median homeowner will experience an increase of around $8-$9 a month.
$4.2 million of the bond funds will be used for the Neighborhood Street Project, $20.6 million will be bonded for construction of the three water treatment plants. Utility rate increases were set at 37.3% for water, 4.5% for sewer, and 4% for stormwater.
According to the media release from the City, the additional increases will 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
The city also reflected on cost-cutting and efficiency measures in the budget and levy…$320,000 were reduced by departments in order to help contain the cost increases. Over $750,000in costs savings benefit the capital budget.
In addition, the council approved a 2025 HEDRA Levy to 0.185 percent of the taxable market value. This levy would be used for economic development activities and gorw areas such as the Industrial Park and Vermillion Corridor.
