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Hastings City Hall

The Hastings City Council approved a resolution stipulating that their $59,381 Community Development Block Budget be used to cover the tax hikes for low-to-moderate-income property owner’s whose valuations rise due to city improvement projects. 

Designed to assist those that are of low to moderate income, the federal government allocates these community development block grants to counties, who then pass them on to their respective cities. For 2023, Hastings received $59,381 in block grant money from Dakota County.

Community Development Director John Hinzman explained to City Council that this money has historically been harnessed for assessment abatement. 

Certain city improvement projects, usually street construction projects, lead to a rise in cost assessed back to the property owners tied to those improvements. This is where assessment abatement comes into play.

Through the Community Development Block Grant Budget, the City can provide full or partial abatement of those rising expenses to individuals of low to moderate income. With a street improvement project coming down the pipe later in 2023, residents may be able to qualify for abatement following the completion of the project.

According to Hinzman, any balance left over from the Community Development Block Grant Budget can be transferred to the next year and can be carried forward for four to five years. He said that there is still some funds left over from last year’s budget and that the City is in a good fiscal position with this grant program for this year and next.

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