The Wayzata City Council unanimously approved a $24.69 million preliminary budget for 2027 and a preliminary property tax levy of $7,694,025, a 6.25% increase over 2026.
Council members made clear, however, that they hope the final levy increase will be lower.
“Even though we’re at six and a quarter percent, I think we can all safely say up here at the dais that we’re looking to get that number fairly measurably lower than that,” council member Alex Plechash said before the Sept. 15 vote. “We’re kind of targeting five percent. We’re not sure we can get there, but certainly less than 6.25.”
Mayor Andrew Mullin said that direction has been consistent since the budget process began in July and that the preliminary levy leaves the city some room as the council continues its work.
The preliminary levy must be certified to Hennepin County by Sept. 30. Once set, the council can lower the levy before final adoption in December but cannot increase it.
The council had directed staff at its Sept. 1 workshop to bring the preliminary increase down to no more than 6.25% over the 2026 levy.
The $7,694,025 preliminary levy consists of $7,167,000 for the General Fund, $493,500 for city infrastructure and $33,525 in debt service related to an equipment certificate for the city’s ladder truck.
For a home with a median taxable value of $1,170,150, city staff estimated the city portion of the property tax bill would increase by about $59 if the property’s taxable value remained unchanged. If the taxable value increased by 5%, the estimated increase would be approximately $207.
Staff estimated Wayzata’s 2027 city tax rate at 20.05%. In a comparison presented to the council, Wayzata’s rate was below most of the other Lake Minnetonka-area cities included, with Orono lower.
The city’s preliminary General Fund budget is $10,425,858 and assumes a 6% increase in operating expenses.
Among the costs identified by staff are a full year of wages and benefits for the full-time fire chief, a new investigator position in the Police Department, a seasonal Community Development intern, increased personnel and insurance costs, and the transfer of the Cable and Cemetery funds into the General Fund.
The city’s stated goals for the 2027 budget are investing in public safety personnel and minimizing the impact on residents.
In addition to the General Fund, the preliminary budget includes $1,328,666 for water, $2,113,254 for sewer, $307,155 for stormwater, $457,506 for solid waste, $8,616,577 for municipal liquor operations, $632,646 for the marina and $810,141 for motor vehicle licensing.
Combined, the preliminary budgets total $24,691,803.
Unlike the General Fund, which receives much of its revenue from property taxes, the city’s enterprise funds are supported by user fees. The city reviews those fees annually to provide revenue for operations, cash-flow needs, reserves and replacement of infrastructure.
The preliminary budget follows council workshops held June 2, July 7, July 21, Aug. 18 and Sept. 1.
The council is scheduled to review the 2027-2036 capital improvement plan Oct. 20 and receive a final budget update Nov. 24. Adoption of the final levy, budgets and fee schedule is scheduled for Dec. 1, followed by adoption of the capital improvement plan Dec. 15.
