Draft budget includes $3.5M city‑hall transfer, FAA grant work and developer costs tied to Highway 6

City staff told the Hastings City Council at the July work session that the draft budget includes several large capital items: a one‑time $3.5 million transfer to the city’s construction fund to help pay for a new city hall, two FAA airport projects that will be about 90% reimbursed, and multiple developer projects that together total roughly $14 million.

Staff said the $3.5 million is a one-time transfer to the construction fund to move forward on the city-hall project. The presentation noted that while the city will stop certain rent payments when staff relocate to a new city hall, the immediate budget effect is a transfer out of the general fund to the construction fund.

Airport projects: staff identified two Federal Aviation Administration (FAA) projects — an apron project carryover and runway-lighting work — that together raised next year’s capital spending but that will be mostly reimbursed by FAA grants (staff referenced a 90% reimbursement rate for eligible costs).

Highway 6 / developer projects: utilities staff said developer-driven projects included in the draft total about $14 million, and that $9.5 million of that is associated with the Hastings Southeast (Highway 6) project; the presentation said the city expects to recover roughly 80% of that work via developer reimbursements or other arrangements.

Economic-development funds: staff explained that several years ago the utilities set aside cash to support economic development and that approximately $2 million remains reserved for that purpose. That balance has been used for projects such as rural workforce housing; staff noted the advisory board has raised the question of how to replenish or formalize a mechanism to restore such funds if the city decides to continue using ratepayer‑backed cash for economic development.

Discussion vs. decisions: council heard the capital plan and funding sources and did not take a final vote to move cash between funds at the meeting. Staff said one-time transfers and FAA reimbursements are included in the draft and will be brought back for council review as details and timelines firm up.

Ending: staff will provide follow-up materials and detailed budget pages; council will consider the construction-fund transfer and FAA project details in subsequent budget sessions.