Hastings says Eastern Water Treatment Plant now fully funded; council pauses midyear rate increase

City Administrator Dan Waticha told the Hastings City Council that the state capital budget provided $17.5 million toward the Eastern Water Treatment Plant and that an anticipated $5 million emerging-contaminant grant would combine to fully fund the eastern facility.

"The Eastern Water Treatment Plant is fully funded," Waticha said, adding that funding reduces the need for an immediate water-rate increase in 2026 and lowers projected increases for the following years. He said the funding package, together with prior grants, allows staff to spread rate adjustments over a longer period rather than imposing steep increases up front.

Waticha outlined ongoing construction: raw water mains for the central plant are essentially complete and a contractor is finishing below-grade work on the treatment plant; tip-up walls were expected to be placed in early June. He also noted coordination with the Public Facilities Authority to finalize the financial package.

Waticha briefed the council on an EPA rulemaking that would, if finalized, extend a compliance deadline to April 2031 for qualifying systems that apply and are approved for an exemption. He noted any extension would require an application by a late-July deadline and, if granted, interim control measures would be required during the extension period. The council discussed keeping options open while proceeding with the current construction schedule, which staff said remains on track for early 2029 completion.

Following the funding update, Council Member Lyfield moved not to move forward with a proposed midyear 2026 water-rate increase; Council Member Beck seconded. The motion passed on a council voice vote, effectively pausing a planned midyear rate adjustment though council members said they will continue seeking additional funding to lower longer-term rate impacts.

The council’s action does not cancel future rate adjustments; staff said additional funding searches will continue and that future council meetings could revisit rates as funding and construction progress evolve.