The tax levy to support the preliminary 2024 City of Hastings budget would see a 7.34 percent increase from the city portion of the 2023 overall property tax bill.
The Hastings City Council …
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The tax levy to support the preliminary 2024 City of Hastings budget would see a 7.34 percent increase from the city portion of the 2023 overall property tax bill.
The Hastings City Council approved the preliminary 2024 budget at its meeting Monday, Sept. 18, setting the required Truth in Taxation public hearing for Dec. 4 at 7 p.m.
The overall city budget is projected at $38,898,627, with a property tax levy of $18,649,930.
City Administrator Dan Wietecha pointed out that the levy increase is less than other cities in Dakota County, which are estimated preliminary increases averaging 8.19 percent.
“Cities are ranging from 1.2 percent on the low end to 13.4 percent. The average is 8.2 percent. So, our 7.3 percent is in line, probably a little better than average but certainly experiencing some similar situations as all our neighbors,” said Wietecha.
He said that 40 percent of the levy increase comes from increased property values, pointing out that a homeowner with a median value home of $312,900 will see an estimated property tax increase of $106, or $8.83 per month from the city’s slice of the property tax pie.
Helping the budget also is additional state Local Government Aid of $373,000 as well as increased payments from area townships to cover emergency services that will bring in an additional $115,000.
“We negotiated higher contributions from the neighboring townships to help pay for fire and EMS service to those areas,” he said.
The city received a Public Safety Allocation from the state of $976,000. The budget also uses $500,000 from the general fund and $308,000 from the city’s special revenue fund.
“The 2024 proposed budget and property tax levy allows for modest growth in expenses, even as inflation continues to cut into the budget,” said Wietecha. “The city continues to invest in public safety, aging roads, necessary equipment assets and our staff. The main things driving the increase are inflation, prior funding commitments and asset preservation.”
Inflation obviously takes a big toll on the spending plan.
“Asphalt increased 50 percent in the last two years. That’s an extreme example, but obviously those costs have an impact,” said Wietecha.
Personnel costs also have an impact.
“Payroll is a big part of our budget. We’re looking at a 4 percent cost of living adjustment, maintaining our competitiveness in a very tight labor market. And just in the last two weeks, we got news on our health insurance premiums increasing dramatically,” said Wietecha.
Budgeted requests include:
The Council also approved a proposed 2024 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.
The city expects to use bond funds of $4.1 million for the 2024 Neighborhood Street Project and $5 million for Hastings Civic Arena upgrades ($2.5 million was requested from next year’s state bonding bill).