Hastings City Council Worksession: Restaurant Tax and E-Scooter Ordinance Discussions - October 20, 2025

The Hastings City Council held a worksession on October 20, 2025, at the Hastings Municipal Airport, beginning at 5:30 PM and adjourning at 7:03 PM. The meeting focused on two discussion items: a proposed restaurant tax and an ordinance regulating lightweight e-scooters, e-bikes, and hoverboards on public property.

Consent Calendar

• The agenda for the October 20, 2025 worksession was adopted unanimously via roll call vote.

Public Comments & Testimony

• No members of the public spoke during citizen communications.

Discussion Items

• Restaurant Tax: City Attorney Jesse Oswald presented the restaurant tax as a potential revenue source to address the city's $2 million annual general fund shortfall. A table showed estimated revenue by percentage (e.g., 1% would generate approximately $500,000 annually). Council members expressed varied positions: Some supported the tax as a luxury tax on those who can afford to eat out and a way to capture revenue from non-residents (over 60% of patrons at some establishments are from outside Hastings). Others opposed it as an additional burden on Hastings families. After debate, the consensus was to pursue a 1% restaurant tax. Staff was directed to clarify which businesses and venues would be subject (e.g., cafeterias, school concessions, museum, water park) and to bring the ordinance back for consideration in November.
• E-Scooter, E-Bike, and Hoverboard Ordinance: Oswald reviewed proposed changes to the city code, including defining a business district where these vehicles are prohibited, restricting operation on roads with speed limits over 25 mph, allowing use on trails unless signed otherwise (max 25 mph), and requiring groups of three or more to ride single file. Council discussed the need for lights when operating after dark, ultimately favoring a requirement for front and rear lights. Several members suggested reducing the trail speed limit from 25 mph to 15 mph for safety. The police department vetted the ordinance. No helmet requirement was included due to enforcement challenges; instead, an education component through schools was emphasized. Mayor Beckby requested the ordinance be placed on the next council meeting agenda for a vote.

Key Outcomes

• Restaurant Tax: Council reached consensus to move forward with a 1% restaurant tax. Staff will research definitions of taxable entities (e.g., cafeteria, concessions, vending) and present the ordinance for a vote in November. Councilmember Hoffman requested an annual review of the percentage.
• E-Scooter/E-Bike/Hoverboard Ordinance: Council directed staff to incorporate amendments including a front and rear light requirement for nighttime operation and a 15 mph speed limit on trails. The final ordinance will be presented at the next regular council meeting for approval. An education campaign led by the Public Information Manager and police department will accompany the new regulations.