The Hastings City Council received encouraging news on the city's ongoing PFAS mitigation efforts Monday night, voting to forgo a planned mid-year water rate increase after securing significant state funding for a second water treatment plant. The council also denied the renewal of a tobacco license for Speedway West after repeated violations involving sales to underage customers.

The actions came during the council's June 1 meeting, which also included approval of an annexation agreement tied to the proposed Pleasant Valley Farms development on the city's west side.

The biggest news of the evening centered on Hastings' effort to remove PFAS contamination from the municipal water system.

City Administrator Dan Wietecha reported that the Minnesota Legislature approved $17.5 million in state bonding funds for the city's planned Eastern Water Treatment Plant. Combined with an anticipated $5 million Emerging Contaminants Grant, the project is now fully funded.

The funding dramatically improves the city's financial outlook as it works to build three treatment plants to address PFAS contamination found in all six municipal wells.

"Having full funding for the eastern WTP puts us in the position to not have another rate increase in 2026," Wietecha told council members. He said the funding also reduces projected increases over the next several years and allows those increases to be spread out over a longer period.

The city had been preparing to implement a second 10 percent water rate increase on July 1 as part of a phased funding strategy for the treatment facilities. Finance Manager Chris Eitemiller's report noted that the increase had been planned during the 2026 budget process but was no longer necessary following the state appropriation.

Council Member Lisa Leifeld praised city staff and elected officials for securing outside funding.

"The work being done behind the scenes has been enormous," Leifeld said. "We were looking at a near 250 percent increase over a period of time. For most of us, that seemed quite catastrophic."

Leifeld noted that the city has repeatedly sought grants and legislative support rather than relying entirely on local ratepayers.

"This is a huge win," she said. "Fully funded is a word I don't know that any of us ever thought we'd hear."

The council unanimously voted not to proceed with the planned July water rate increase.

Mayor Mary Fasbender credited staff and council members for their persistent advocacy efforts.

"We are, we have been, and we will continue to turn every rock," Fasbender said. "We're going to continue to push, and as many times a week as we have to go to the Capitol and tell our story and be louder and louder, we're going to do it."

Construction progressing

Wietecha also provided an update on construction of the Central Water Treatment Plant.

According to the report, A-1 Excavating has substantially completed installation of raw water mains, while Magney Construction is finishing below-grade work on the treatment plant itself. Construction crews are expected to begin placing the facility's tilt-up walls in June.

The city continues to pursue additional outside funding sources, including grants, low-interest loans, and potential litigation related to PFAS contamination. The overall PFAS treatment program is currently estimated to cost approximately $70.3 million.

Wietecha also informed the council that the Environmental Protection Agency has initiated rulemaking that could extend the PFAS compliance deadline from 2029 to 2031 for qualifying communities. However, he emphasized that Hastings remains committed to its current construction schedule.

"Our current plan and intent is absolutely to move forward with the existing schedule," he said, noting the city wants to provide residents with clean drinking water as quickly as possible.

Speedway West loses tobacco license

In another significant action, the council denied renewal of the tobacco license for Speedway West, located at 1390 South Frontage Road.

The denial follows four compliance violations over the past four years involving sales of tobacco products to persons under 21 years of age. According to a staff report, Speedway failed an FDA compliance check in January 2022 and Hastings Police Department compliance checks in 2023 and twice in 2025.

The violations resulted in escalating penalties, including fines and license suspensions, but city officials said the store continued to fail compliance checks.

Assistant City Administrator Kelly Murtaugh explained that tobacco license renewals are typically handled through the consent agenda and rarely require council discussion.

The council first approved renewals for all other tobacco license holders before separately considering Speedway West's application. The denial was based on the store's repeated violations and lack of improvement despite previous enforcement actions.

Speedway can petition for a hearing to try to reverse the action.

 Other business

The council also approved a staff recommendation to transition to Minnesota's new 18-day early voting model rather than continue operating a full 46-day in-person absentee voting program at City Hall. The change is expected to save approximately $8,500 in staffing costs while maintaining voter access through Dakota County's absentee voting system.

Earlier in the meeting, Mayor Fasbender issued a proclamation declaring June 2026 as LGBTQIA+ Pride Month in Hastings. The proclamation highlighted the city's commitment to diversity, equity and inclusion and recognized the work of local organizations promoting acceptance and support for LGBTQIA+ residents.