At the December 5th meeting, the Wayzata City Council has formally approved the City of Wayzata‘s final property tax levy and budget for the fiscal year 2024. This decision follows the endorsement of a Preliminary Budget and General Fund Tax Levy increase of 9.98% during the September 19th meeting. The City Council’s consideration has resulted in the Final 2024 General Fund Budget amounting to $8,566,275, effectively scaling down the Wayzata tax levy increase to 8.98%.

The proposed 2024 Budget, encapsulated in a comprehensive document, underwent thorough discussion during the meeting. A memo elucidating changes from the previous year’s budget was presented. The session served as the City’s Truth and Taxation Hearing, aligning with the recent distribution of Preliminary Property Tax Statements by Hennepin County. These statements included information about the proposed budget, property tax levy, and a notice of the Truth in Taxation Hearing. The final budget and tax levy must receive approval and certification by the County before December 28, 2023.

Three primary budget goals emerged during the comprehensive budget process for 2024:

1. Maintain the current level of city services
2. Restore annual investments toward capital projects
3. Invest in new positions and compensation to retain and attract the best employees

The General Fund Budget, as presented, anticipates a 9.01% increase in operational expenses. When accounting for other revenue sources, debt, and capital needs, the overall property tax levy increase is capped at 8.98%. Factors contributing to this increase include rises in repair, maintenance, and utility costs, investments in communication services and technology, the addition of two new positions, employee wage increases, and addressing insurance costs and revenue losses.

Enterprise and special revenue funds, supported by user fees, are scrutinized annually to ensure proper revenues for maintaining operating reserves, meeting cash flow needs, and replacing depreciating infrastructure. The City reviews these budgets concurrently with the General Fund budget, as they collectively fund city services, staff payments, and transfers to capital project funds.

Total 2024 Budget Breakdown:

• General: $8,566,275
• Water: $1,316,280
• Sewer: $1,533,493
• Stormwater: $251,029
• Solid Waste: $445,318
• Motor Vehicle: $684,891
• Cable TV: $88,691
• Cemetery: $9,757
• Liquor (Wine & Spirits and Bar & Grill): $8,207,124
• Marina: $226,997

Total Consolidated Budget: $21,329,855

The final step in the 2024 budget process will be the approval of the Capital Improvement Plan at the December 19, 2023 City Council Meeting. As the budget is set, the City of Wayzata anticipates a prosperous and fiscally responsible year ahead.

Prior to passage and during the discussion of the budget Council member Cathy Iverson raised a concern about the number of new positions that have been added to the City’s payroll in recent years, “I want us as a City to be conscious, moving forward, that we don’t continue to see this large of an increase, we have hired 8 employees since 2020. It is a large financial hit to the City, but at some point we need to start to see that level off.”

Assistant City Manager Aurora Yeager responded, “Each year we’ve done a long term staffing and typically we have not approved everything that is in that plan each year for that same sensitivity, we are really trying to balance the needs of the organization versus what can the community stomach in terms of what is our right size.”

Mayor Mouton inquired as to present day assessments from Hennepin County, “What are they seeing for payable 2025? Are they seeing them leveling off?”

Yeager replied, “I would say some, but not flat by any means. maybe closer to 10% is where they are seeing things, so the rate of increase is coming down but it is still…”

City Manager Dahl also jumped in with, “High around the lake and a little bit lower in the neighborhoods.”

“A little flatter inland, but lakeshore is still going up, so people should be prepared…”

“Ms Yeager you have done an exceptional job of guiding us through the process,” stated Mouton.”It’s a long arduous process. Thank you for being patient with us.”