Wayzata’s 2026 budget discussions are revealing a sharp divide between City staff, who recommend a double-digit levy increase to sustain services, and Mayor Andrew Mullin, who campaigned on fiscal restraint and won election on a decisive vote last fall.
At an August 19 workshop, Finance Manager Peter Zimmerman and Interim City Manager Mike Kelly presented a preliminary 2026 general fund levy of $7,742,015, which they reported as a 12.15% increase over 2025. Staff said the draft budget “funds several initiatives and projects that will help the organization achieve and sustain excellence in providing services” and “maintain community character and ensure safety for residents and visitors”.
The staff budget memo shows that the levy increase has already been reduced from an initial 13.6% to 12.15% through adjustments such as trimming insurance costs, reducing administrative software licenses, and cutting beach lifeguards. Staff also laid out options for deeper cuts: eliminating a planned police officer position (\$138,115), delaying a full-time fire chief hire (\$90,230), or reducing the city’s fire relief contribution (\$27,000). Taken together, those changes could bring the levy increase down to 8.45%, though staff warned each reduction carries consequences for public safety, inspections, or long-term competitiveness.
General Fund Spend Up 48% since 2020, Levy Increase at 45%
Mayor Andrew Mullin has been outspoken in his opposition to the trend. Over the weekend, he published a comprehensive letter on his Medium page laying out his case against the proposed levy.
In it, he wrote: “The initial proposal for the 2026 property tax levy started at a 14.44% increase, which was then revised down to 13.32%, and now stands at 12.87%. At nearly 13% this is a big jump, especially when you look at the recent past. Since 2020 thru 2026, our general fund spending and the property tax levy as proposed will have increased 48 percent and 45 percent, respectively.”
Mullin contrasted that growth with the city’s underlying needs: “Population has grown 3% during that time, inflation 33% and levy 86%.” He added: “This is not about cutting critical services. It’s about changing our culture. We cannot keep expanding government without asking what it means for affordability, fairness, and the trust of our residents.”
Diversify Revenue
In his Medium letter, Mayor Mullin also floated the idea of creating a new Tax Increment Financing (TIF) district downtown around the Boatworks and TCF sites. He argued that a carefully designed district could capture redevelopment value and shift some of the city’s financial burden away from residents, while supporting infrastructure and renewal projects in the core business area. He also discussed other ways to diversify the budget.
The competing views set up a clear political divide. Staff emphasize the importance of maintaining operational excellence and service levels, even at higher cost. Mullin argues that levy growth is out of step with Wayzata’s needs and must be reined in to preserve affordability for residents.
The City Council previously directed staff to find reductions that would bring the levy increase under 10%, but no firm decision has been made. The preliminary levy must be certified by September 30, with a final truth-in-taxation hearing and vote later this year.
The public can read Mayor Mullin’s full budget letter on his Medium page and review the staff’s budget proposal on the City of Wayzata website. Both documents will guide the conversations ahead as the Council weighs whether to lean into staff’s model of continued investment or follow the mayor’s call to “bend the cost curve.”
Muni to Close for Remodel
As part of the broader budget discussion, the City is also planning a temporary closure and remodel of the Wayzata Bar & Grill, known as the Muni. Staff said the short shutdown for the refresh project is not expected to significantly affect year-end results, with employee wages maintained during the closure and sales anticipated to rebound once the doors reopen.
The debate over Wayzata’s 2026 budget reflects more than just a spreadsheet of numbers — it’s a choice about the city’s future identity. Staff have framed the levy increase as an investment in excellence and stability, while Mayor Mullin has cast it as a test of fiscal discipline and cultural change. With the preliminary levy due by the end of September and a truth-in-taxation hearing later this year, residents will soon see which vision prevails: a community that funds more expansive services, or one that presses pause to preserve affordability and trust.
Tuesday Workshop
The 2026 budget process now sits at a crossroads, shaped by competing priorities of service, safety, affordability, and restraint. Council members will continue weighing the staff’s case for sustaining growth against the mayor’s call for cultural change in City Hall.
The budget will be discussed further at the City Council workshop on August 19, 2025, at 4:30 p.m., where potential reductions and alternatives will be reviewed before the preliminary levy is set. With the preliminary levy due September 30 and final adoption later this year, the decisions ahead will help define Wayzata’s financial path for the next decade. Stay tuned to Wayzata.com for full coverage as the debate unfolds.
