The Hastings City Council received a positive financial report, approved a major infrastructure agreement with the Metropolitan Council and cleared up a decades-old zoning issue for Tri Rivers Chevrolet during its June 15 meeting at City Hall.
The meeting also included the swearing-in of newly promoted police officers, introductions of several city employees and interns, and action on a number of routine city projects.
One of the evening's most significant items was presentation of the city's 2025 Comprehensive Annual Financial Report.
Ryan Engelstad of auditing firm BerganKDV presented the results of the annual audit and reported that Hastings received an unmodified opinion, commonly known as a "clean audit," the highest level of assurance auditors can provide.
"This is the optimal result when it comes to a set of audited financial statements," Engelstad told council members.
The audit found the city's financial statements were fairly presented and that the city complied with state and federal requirements. The review included testing of federal grant programs, including American Rescue Plan Act (ARPA) funding and federal funds associated with construction of the city's new water treatment plant. No compliance issues were identified.
The only issue noted involved an accounting adjustment related to the Minnesota Public Facilities Authority funding package for the water treatment plant project. Auditors identified a need to better separate grant proceeds from loan proceeds in the reporting process. Engelstad emphasized that the matter was technical in nature and did not reflect any misuse of funds.
"It is an isolated matter," he said, adding that Hastings' finance department had done a "phenomenal job" managing the city's finances.
The report showed the city's General Fund continued to strengthen in 2025. Unassigned fund balance increased to approximately $10.3 million, while total General Fund balance reached more than $12.4 million, the highest level in the past five years.
General Fund revenues totaled $21.4 million, exceeding budget projections by more than $1 million. Expenditures came in below budget by roughly $446,000. The city ended the year with a net increase in fund balance of approximately $2.67 million, far above the budgeted increase of $814,249.
Property taxes remained the city's largest revenue source at just over $12.1 million, while intergovernmental revenues increased significantly because of grant funding related to the City Hall renovation project and other state and federal programs.
Public safety continued to represent the largest General Fund expenditure category, accounting for approximately 42 percent of spending.
Following the presentation, council members unanimously accepted the audit report.
The council also approved a cooperative construction agreement between the City of Hastings and the Metropolitan Council that will allow significant sanitary sewer improvements to be coordinated with the planned reconstruction of Highway 61.
Public Works Director Ryan Stempski explained that the Minnesota Department of Transportation is planning to reconstruct Trunk Highway 61 through Hastings in 2028. At the same time, the Metropolitan Council is preparing long-term improvements to the regional wastewater system that will eventually direct wastewater treatment to a future regional facility west of the city.
By coordinating the projects, city officials hope to avoid tearing up the reconstructed highway in the future and minimize disruptions to residents and businesses.
Under the agreement, the Metropolitan Council will pay for design and construction costs associated with the sewer improvements, while the city will manage bidding and construction administration as part of the larger highway project.
The sewer work will involve changing the flow direction of a section of city sewer along Highway 61 between 18th Street and County Road 46 and extending the line to a future connection point on 18th Street. The project also includes reconstruction of sewer service to the Ardent Mills property.
The agreement establishes responsibilities for project design, construction oversight, bidding procedures and cost reimbursement. Metropolitan Council officials will reimburse Hastings for actual engineering and construction costs associated with the sewer work.
City officials said the cooperative approach will reduce overall project costs while minimizing traffic and construction impacts along one of Hastings' busiest transportation corridors.
The council unanimously approved the agreement and related actions necessary to advance planning.
The council also approved a Special Use Permit for automobile sales at Tri Rivers Chevrolet, located at 2929 Red Wing Boulevard. The action resolves a regulatory issue dating back nearly four decades.
According to Community Development staff, city records show the property was rezoned and received site plan approval when the original dealership was established in the mid-1980s. However, officials were unable to locate documentation proving a Special Use Permit had ever been formally approved, even though automotive sales require such a permit in the C-2 Highway Auto-Specialized Commerce zoning district.
The dealership has operated at the site for decades without issue, and city staff indicated there are no proposed changes to the property or business operations.
"The applicants would like formal SUP approval to ensure there are no regulatory issues in the future," City Planner Justin Fortney wrote in his report to the council.
The Planning Commission reviewed the request during a June 8 public hearing and voted unanimously to recommend approval. No public comments were received, despite notifications being mailed to property owners within 350 feet of the site.
Staff noted that the existing dealership has operated for many years without known concerns involving traffic, parking, lighting, screening or compatibility with neighboring properties.
The council approved the permit with standard conditions, including a three-year sunset clause if the use ceases operation, a requirement for additional review if the use significantly changes or intensifies, and provisions allowing revocation proceedings if violations or nuisances occur.
Other Business
Earlier in the meeting, Mayor Mary Fasbender proclaimed June 21 as Make Music Day in Hastings and presided over the promotion and swearing-in of Police Commander Sam Beuch and Sergeant Paul Young. The council also welcomed several new employees and interns, including Communications Coordinator Isabella Lugowski, Parkkeeper Matt Meier, City Engineer Brent Thompson, Engineering Intern Elsie Jacobs and Community Development Intern Natalie Rogus.
The council approved its consent agenda, including liquor license renewals, donations to the police and fire departments, and several construction payment requests for ongoing infrastructure projects.
Following additional business later in the evening, including a hearing regarding Speedway West's tobacco license, the council entered a closed session concerning attorney-client privileged communications related to the City Hall renovation project.
The next regular meeting of the Hastings City Council is scheduled for July 6.