WAYZATA — In an Oct. 21 workshop, the City Council reviewed a draft 2025 legislative agenda that narrows the city’s bonding request, seeks a fix to Panoway sales-tax timing, and opens the door to a regional coalition focused on protecting local control. A formal agenda will return for adoption at a regular meeting.
The headline requests
$9 million state bonding package. Staff recommended a streamlined ask:
- $7 million toward the remaining regional Panoway work (about $9.6 million needed in total).
- $2 million for design of remodeled or new public safety facilities (police/fire).
Notably, Klapprich Park, Wayzata Beach, and Shaver Park are not included this year to keep the package targeted.
Extend the Panoway construction-materials sales-tax exemption. Wayzata previously secured a sales-tax exemption on construction materials, but the window for eligible purchases expires Jan. 1, 2025. With Phase 3 spending still ahead, the city will seek an extension so those materials stay tax-exempt.
Sales-tax tool: keep options open, gather numbers
Council also discussed whether to pursue special local taxation authority if the Legislature reopens the door next session. Two concepts were weighed:
- Food & beverage tax (narrow scope, aimed at visitors who use local services).
- General local option sales tax (broader base, but tightly defined in state statute, limited to capital projects and processes like project caps and ballot approval).
There’s has been a moratorium on new local sales-tax approvals statewide, and committee leaders reportedly hold divergent views on what (if anything) to allow next session. Staff and lobbyists advised remaining open to any viable path and deciding later whether to proceed.
Council members asked for hard numbers—revenues, impacts, timelines, and statutory constraints—before signaling a preference. Concerns surfaced about retail competitiveness under a general sales tax, alongside interest in a visitor-focused food & beverage approach if that option becomes available. The consensus: bring back data with the lobbyist present before giving direction.
Targeted policy asks
- TIF eligibility tweak. Wayzata will pursue expanded eligibility under TIF 6 to allow future facility-related expenditures if authorized by statute—described as a no-cost, “give us the option” clarification for the Legislature.
- Statewide e-mobility rules. Following local steps on speed, helmets, and noise, the city will ask for clear statewide standards for e-bikes and motorized scooters to address safety and consistency across lake communities.
Lake Minnetonka coalition on local control
Wayzata is being invited to join a Lake Minnetonka Area Legislative Coalition of cities to defend local control on issues like zoning, assessing, and tax authority. After success working together last session, lake-area mayors are organizing a small, shared lobbying effort to speak as a regional block. The Council asked staff to bring materials and a presenter (expected later this year) before deciding whether to join.
What’s next
Staff will return with a complete package—bonding bill language, the sales-tax exemption extension ask, TIF 6 eligibility language, the e-mobility request, and side-by-side analysis of food & beverage vs. general local option sales tax (revenues, constraints, and political viability). The coalition invitation will also come back with details on scope and cost. At that time, the Council will finalize its 2025 legislative agenda and authorize its lobbyist strategy.
Quick recap (at a glance)
- Bonding: $9M total — $7M Panoway regional work + $2M public safety design.
- Tax fix: Extend Panoway construction-materials sales-tax exemption beyond Jan. 1, 2025.
- Local tax tools: Keep both food & beverage and general local option on the table pending numbers and state action.
- Policy items: TIF 6 eligibility expansion; statewide e-bike/scooter rules.
- Regional voice: Consider joining a Lake Minnetonka cities coalition to protect local control.
