WAYZATA — As Wayzata’s City Council continues shaping its 2026 budget, a recent workshop laid bare the competing priorities and tough tradeoffs ahead. The session, held July 1 at City Hall, focused on the long-term financial outlook and next year’s preliminary levy—currently projected at a 13.6% increase.
A central theme throughout the evening was public safety. The largest proposed budget increase comes in the form of staffing: the city is planning to fund one additional full-time police officer, moving from 18 to 19 officers. This follows a recent investment in community service officers (CSOs), a pipeline strategy that has helped train and retain talent within the department. Two officer positions are currently open due to attrition, but the proposal would add a net new officer on top of filling those vacancies.
“This reflects our commitment to proactive policing,” said staff, noting that with growth in residential and commercial activity downtown, police response needs continue to evolve.
The fire department was also in focus. Once again, the 2026 preliminary budget includes funding for a full-time fire chief—a role that has now appeared in five consecutive budget drafts but has been removed in each final version. Currently, Wayzata relies on part-time fire leadership. Council members acknowledged the growing importance of professionalized emergency management, but some expressed skepticism about adding a major new salary given other fiscal pressures.
City Manager Jeff Dahl and Finance Manager Peter Zimmerman presented updated five-year projections, identifying future deficits that could emerge if all capital and personnel plans are pursued at once. The charted scenarios showed potential shortfalls starting in 2026 and deepening by 2028—though staff were quick to emphasize these are conservative estimates that do not factor in potential grants, cost savings, or revised priorities.
A notable example: the Klapprich Park project initially showed a hard deficit in 2025, but after securing grant funding and favorable bids, the financial impact was pushed out and softened. “That’s the kind of outcome we want to repeat,” said Zimmerman.
Still, questions emerged about whether the city’s budgeting is too cautious. For ten straight years, Wayzata has ended its fiscal year more than $500,000 ahead of forecast. Some council members asked if it’s time to adjust the baseline assumptions.
“The public sees this and says, ‘Wait—you beat the forecast by a million dollars last year, and now you want to raise taxes?’” said Mayor Andrew Mullin. “That’s the disconnect we have to explain.”
Other items in the draft budget include modest increases to permit fees (most rising by 3%), adjustments for utilities and maintenance, and continued funding for long-term infrastructure investments. The city is also planning for a new state requirement in 2026: a 0.8% payroll tax for family and medical leave, half of which may be passed on to employees.
Public works, parks, and administrative departments saw relatively small adjustments, with the exception of a few utility and technology cost increases. Meanwhile, fire relief funding saw a $34,000 passthrough increase, fully offset by revenue.
In sum, the budget discussion painted a picture of a community balancing its small-town charm and high standards with growing expectations—and a desire to stay ahead without overburdening residents.
The council is expected to vote on the preliminary 2026 tax levy on September 2, with the understanding that the number will likely change as the city continues to sharpen its pencil. Final budget adoption is slated for December.
For full documents and updates, visit wayzata.org/agendas.
