WAYZATA, Minn. (Dec. 2025) — After holding its annual Truth-in-Taxation hearing, the Wayzata City Council voted to adopt the 2026 final property tax levy and budget, closing out a months-long process that balances rising service demands with a continued commitment to fiscal restraint.

The Council approved Resolution 53-2025, certifying a final levy of $7,241,697, and Resolution 54-2025, establishing a total 2026 budget of $23,120,220. The action reduces the levy increase from the 7.5% reflected on residents’ preliminary notices down to 4.9%, a notable adjustment achieved through targeted refinements to the General Fund levy.

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A Budget Shaped by Public Safety and Long-Range Planning

Staff walked the Council through the full financial landscape for the year ahead, beginning with the General Fund — the City’s primary operating account. Public safety remains Wayzata’s largest budget category, reflecting the community’s long-standing priority of maintaining a safe, responsive, and well-trained department. General government, public works, parks and recreation, community development, and fire services round out the remaining shares of the operational budget.

The City’s enterprise and special revenue funds — including water, sewer, stormwater, solid waste, motor vehicle services, liquor operations, cable TV, the cemetery, and the Wayzata Arena — were also reviewed. Together, these funds make up more than half of the City’s financial activity and are supported by user fees rather than property taxes. The combined liquor operations, one of Wayzata’s largest enterprise funds, continue to play a major role in supporting city services.

When all funds are combined, the 2026 total budget stands at $23.1 million, with the General Fund comprising nearly half.

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Key Drivers Behind the 4.9% Levy Increase

Several factors shaped the final levy:

• Addition of a full-time Fire Chief, scheduled to begin in the second quarter of 2026
• Cost-of-living wage adjustments for city staff
• Market-based pay adjustments for police officers to ensure competitive recruitment and retention

These investments align with the City’s strategic priorities: strengthening public safety staffing, advancing initiatives from the 2024–2026 Strategic Plan, and maintaining service levels without overburdening residents.

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Wayzata’s Increase Remains Below Neighboring Cities

Staff also provided regional comparisons showing that Wayzata’s 4.9% levy increase is well below preliminary increases adopted by many Lake Minnetonka-area communities. With a 2026 projected tax rate of 19.6%, Wayzata continues to track lower than most peer cities — a point of pride for a community committed to careful financial stewardship.

Property tax distribution data further shows that only a portion of a resident’s total bill supports city operations, with schools, Hennepin County, and other jurisdictions making up the majority of the average tax payment.

Council Comments

Mayor Andrew Mullin opened the discussion by encouraging residents to stay engaged in the upcoming school district referendum. “I want residents aware of it and tune into it,” he said, noting that the proposed measure carries a direct financial impact. “If that levy is approved, the implication to it is $303 for every $650,000 of home value.” Mullin emphasized that he was not taking a position for or against the referendum, adding that his goal was simply to ensure residents had clear information as they evaluate the proposal. “The 4% preliminary looks nice, except when you look at a half billion dollar referendum… I’m just trying to provide information.”

Mullin explained why he would not support the final levy. “I’m gonna vote no on this tonight and I wanted to state my reasons,” he said. While he commended staff for reducing the projected levy from 14.5% to 4.9%, he pointed to external forces driving unusually high tax pressures across Hennepin County. “There’s some unique circumstances going on… pushing a significant burden to our property tax,” he said, noting that Wayzata saw an average 22.1% increase in property valuations — the highest in the county — while parts of the east metro experienced commercial decline. “It’s a double-edged sword…” he said, citing examples of property tax bills rising 10%, 25%, even 48% in a single year. He added that “we need to work harder to control what we can control” and said he “would have preferred to see a number in the threes versus 4.9.”

Councilmember Dan Koch offered a clarification during the budget discussion, noting that one of the reductions used to reach the 4.9% levy increase involved a proposed position—not an existing one. “I just want to make a point of clarification that we are not cutting an existing community service officer,” he said. Koch explained that the budget initially included a new CSO position, but after receiving input regarding operational needs and management considerations, the City chose not to move forward with adding the fourth role. “We’re just not increasing that,” he said. “We’ll maintain our three community service officers.”

Councilmember Alex Plechash underscored the significance of the work that went into lowering the levy during the Truth-in-Taxation process. “We’re about to approve a 4.9% increase, but I’d like the viewing audience to realize what went into that is that we still invested very well into public safety, in police, in fire, in our city staff, and we didn’t shortcut that at all,” he said. Plechash noted that the preliminary levy “initially started at 14.5%, something like that,” and emphasized that the City’s final number reflects substantial refinement without compromising essential services. “We were able to get that down to 4.9% and still not sacrificing public safety,” he said.

Councilmember Ken Sorensen reflected on the broader financial approach that shaped this year’s budget process, noting the value of the City’s longstanding fiscal discipline. “I think our overall strategy and a little conservatism has played well with this city and I think we are continuing now to be a little more aggressive with it,” he said. Sorensen added that his perspective on the 2026 budget was positive, emphasizing the collaborative effort behind it. “Overall I think my comments are generally complimentary to this team and the staff about the process we’ve been through this year.”

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Next Steps: Capital Projects on Deck

With the operating budget and levy now finalized, the Council will turn its attention to the 2026–2035 Capital Improvement Plan (CIP) at its December 16 meeting. The CIP outlines long-term investments in streets, utilities, parks, buildings, and major equipment — the infrastructure that shapes Wayzata’s future.