At its Sept. 2 meeting, the Hastings City Council approved a preliminary 2026 Budget of $44.5 million and set a preliminary property tax levy of $21.7 million to invest in improved water treatment; infrastructure, building and equipment preservation; and personnel. The Council also scheduled a truth-in-taxation public hearing for Monday, Dec. 1 at 7 p.m.
The proposed property tax levy represents an 8.4% increase over 2025. A homeowner with a median value home ($331,600) will see an estimated annual property tax increase of $162, or $13.50 per month, on the city’s portion of property taxes.
The proposed levy increase is below most Dakota County cities’ early levy projections averaging 10.2% and ranging 5-19%.
“The city continues to invest in clean and safe drinking water, aging roads, necessary building and equipment assets and our staff,” said City Administrator Dan Wietecha.
Budgeted increases include:
- Hiring additional part-time support in the police department; adding eight weeks’ worth of time to the aquatics manager role; increasing a public works administrative assistant from part-time to full-time - total of $70,700
- Health insurance increase of 20% or $357,000 for levy-supported funds
- 3.5% COLA adjustment on wages - $465,000
- Police officers’ market pay rate adjustment - $97,000
- Increased debt service - $266,500
- General inflationary increases for service and supplies - $197,700
Specific projects will require the following funding commitments from the city:
Infrastructure
- Eastern Water Treatment Plant - $22.3 million ($6 million grants already approved)
- Well and Pump House #9 - $1.5 million
- Neighborhood Project (4th St W and Pleasant Dr) - $4.2 million
- Mill and Overlay Valve Replacements - $132,000
- Sewer Trunk Line Cleaning - $100,000
Asset Management
- Facilities – new roof for Public Works Building - $510,000
- Vets Park LED Lighting - $150,000
- Park/Trail Work - $150,000
- Fleet Vehicle Replacements (five-year rotation) - $754,000
- Plow/Dump Truck for the Street Department - $300,000
Preliminary utility rate increases were set at 4.5% for sewer, 4% for stormwater, and a phased increase for water at 10% in January and 10% in July.
The Council also approved a proposed 2026 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.
City budget information is posted at www.hastingsmn.gov/budget.
