Hastings Public Schools — Transcript
Tuesday, September 8, 2026
Preliminary 2027 City Property Tax Levy and Budget
PFOA Contamination and Water Treatment Projects (PAS Update)
Carboni's Pizza Lawsuit
2027 Hedra H Special Tax Levy
Votes (4)
Resolution to approve the preliminary 2027 city property tax levy preliminary budget and setting truth and taxation hearing
Moved by Council Member Verich [0:26:00] · Seconded by Council Member House [0:28:30]
The City Administrator presented the proposed 8.77% levy increase, detailing revenue drivers (e.g., increased ambulance rates, municipal state aid formula change benefiting park projects) and expense drivers (e.g., staff additions like principal engineer, assistant fire chief, communications specialist, embedded social worker; major infrastructure including Western Water Treatment Plant and an inclusive park; asset management). Council members expressed support, acknowledging the thorough work, the need for critical services, and the balance required in challenging financial times, while also recognizing the impact of increases on residents.
Resolution to approve the proposed 2027 Hedra H special tax levy
Moved by Council Member Lyfeld [0:35:50] · Seconded by Council Member Pemble [0:35:50]
The council considered and approved the proposed 2027 Hedra H Special Tax Levy. No specific discussion points were recorded in the transcript beyond the procedural steps for approval.
PAS update
The City Administrator provided an update on the progress of the Central Treatment Plant construction, including roofing, concrete, and utility work, with substantial completion expected by year-end 2026. He also noted that $5 million in emerging contaminant grant dollars would be accessed for the Eastern Treatment Plant to accelerate construction. The significant development was the filing of a lawsuit by the City of Hastings against 3M Company on August 26th to recover costs related to PFOA contamination of the public drinking water.
Carboni's Pizza lawsuit
The City Administrator updated the council on the lawsuit filed by Carboni's Pizza against the city regarding the central water treatment plant property acquisition, with the city disputing claims of loss of lease and income. Both parties' motions for summary judgment were denied in mid-July. Following a closed session to discuss legal strategy, the council decided to allow the existing legal process to continue without taking any new or diversionary actions at this meeting.
Notable Quotes (8)
although the budget itself is some $70 million, roughly 20 million of that is uh property tax levy. And that's the piece that most people tend to gravitate towards. And what's the levy? What's the impact on the levy? So that's the top line here. It's about a $1.9 million increase uh 8.77% uh on a uh median value home. That's about $159 increase uh $13 and change per month.
Earlier this year, the state changed the formula. So, it has a cap based off of average tax uh capacity the last few years. Our new cap is about $260,000. So, we went from 4.3 to 260 and change. Um, huge cost savings for us. Um, uh, but it means we have this war chest of funds that can only be spent on eligible street projects.
It's not a question, Dan. It's more of a statement um on our inclusive park in the budget. Uh I wrote it down because I get a little teary eyed. Uh, I have a child with Down syndrome and a typical playground isn't one that he can fully enjoy. [snorts] So, I'm incredibly grateful to I sit on the parks direct committee. I'm incredibly grateful for the committee members, our commissioners, all of council, and all of park staff. Um, and you too, Dan. Uh, for coming to all of our meetings. Um, I think this is a great opportunity for the city of Hastings. Thank you.
Just really think about what we're doing here in regards to we're making really tough choices to keep a city right to keep the residents in the city happy and safe and secure. And in council member Beck's point, we want all of our city residents to be able to find something to do in our town. So, just keep that in mind when you hit your keyboards later [laughter] and and just remember that these decisions are they affect all of us significantly and others more than than some.
in August uh the public facilities authority indicated that uh the emerging contaminant grant dollars $5 million uh could be accessed first for the eastern treatment plant uh enabling construction to start uh while we're still waiting on paperwork for the state bonding dollars. The project is fully funded.
the city of Hastings filed a lawsuit against 3M Company to protect public health and recover the costs to address PFOA contamination of its public drinking water. The lawsuit alleges that 3M is responsible for this contamination and that 3M should pay the high cost of building and operating treatment systems to remove PFOA from drinking water.
back uh October 29th of of last year, 2025, uh Pizza on 50th in France, uh doing business as Carboni's Pizza and Hastings uh filed suit against the city uh related to our purchase of the property for the central water treatment plant, alleging loss of lease and income. Uh we certainly uh from that date and continue to dispute the substance of those claims.
in mid July, the judge denied both the city and Carbon's motions for summary judgement. Uh we met earlier this evening to discuss uh whether we might take some uh uh next steps or legal strategy with council. Uh so with that uh council could make a motion or um or not.
Ordinances & Resolutions (8)
The financial document proposing the city's budget and property tax levy for 2027, subject to a truth and taxation hearing.
The city council's guiding document, influencing budget priorities and staff additions like communications.
A required decennial update by Met Council for future development, water, sewer, and stormwater planning.
Related planning documents that are part of the comprehensive plan update process.
A specific special tax levy for the Hedra H area proposed for 2027.
The legal document filed by the city against 3M Company concerning PFOA contamination in public drinking water.
Ongoing negotiations with police officers, police sergeants, and parks and public works employees unions, impacting future budget expenses.
Policy guiding the appropriate use of the city's fund balance for one-time expenses.