StoryBonding Bill Initiatives
Minnetonka seeks $116 million in infrastructure funding
The Minnetonka City Council outlined its 2026 legislative priorities, focusing on securing state funding for major infrastructure improvements and addressing affordable housing challenges. The city is pursuing a bonding bill, a local sales tax option, and tax breaks for construction to finance the ambitious agenda.
Meeting date: Sep 3, 2025
Published Jul 24, 2026
Minnetonka officials are preparing to ask state lawmakers for help funding $116 million in infrastructure improvements, with Fire Station 2 reconstruction as a centerpiece project. The city plans to request a bonding bill in 2026 and is seeking special legislation to allow a local option sales tax to help pay for the work. They're also asking for a construction sales tax exemption to reduce costs on these projects.
Affordable housing emerged as another major priority. The council discussed increasing flexibility in Tax Increment Financing (TIF)—a tool that redirects property tax increases to fund development—specifically for affordable housing projects. The city is also backing a $5 million initiative to preserve naturally occurring affordable housing, which refers to existing apartments and homes that are affordable without government subsidies. Officials emphasized the importance of maintaining local control over zoning decisions to ensure community-specific planning.
Beyond housing and infrastructure, the council identified several other concerns. These include expanding the city's authority over fiber and utility companies to improve accountability and customer service, managing e-bikes on city streets, and addressing the clustering of group homes in certain neighborhoods. The council also wants to expand a camera program for speeding enforcement and secure more funding for environmental initiatives and juvenile justice services.
The city is also participating in a Highway 7 Transportation Management Organization to coordinate regional transportation issues. While no votes were recorded at this meeting, these priorities will guide Minnetonka's advocacy efforts with state legislators in the coming year.
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Source document
## Agenda
## City of Minnetonka
## Council Special Study Session
Friday, January 23, 2026
## 7:30 AM
## The Marsh - Dragon Room
15000 Minnetonka Blvd.
1.Legislative Breakfast
A.Welcome and introductions
B.Local highlights
C.Legislative priorities
D.Comments from legislators
E.Comments from League of Minnesota Cities, Metro Cities and Municipal Legislative
## Commission
F.Questions and answers
2.Adjournment
The purpose of a study session is to allow the city council to discuss matters informally and in greater detail
than permitted at formal council meetings. The council may provide direction to staff but does not make formal
decisions at study sessions. Members of the public are welcome to attend and listen, but the council does not
take comments from the public.
1
## MINNETO N K A LEGISLAT I V E PRIORITIES
2026
14600 Minnetonka Blvd.
## Minnetonka, MN 55345
952-939-8200 | minnetonkamn.gov
## BONDING BILL
Fire Station 2
## Local Option Sales Tax
• Minnetonka seeking special
legislation in 2026
• $116 million in infrastructure
improvements
Construction sales tax
exemption
TAXES
• Flexibility in TIF for affordable
housing
• Support affordable housing
legislation/menu of options
• Maintain local zoning authority
and decision making
• Preservation of Naturally
## Occurring Affordable Housing
## (NOAH)
• $5 million
## HOUSING
• Expansion of franchise fee
authority
• Accountability and customer
service
## FIBER & UTILITY
## COMPANIES
• Local control
## • Emergency Medical Services
• Assessing
• E-bikes
• Hwy 7 Transportation
## Management Organization (TMO)
• Clustering of group homes
• Expansion of PILOT program for
public safety cameras (speeding)
• Environmental funding
## AWARENESS
## TOPICS
2
• Juvenile justice resources
• Family support resources
14600 Minnetonka Blvd.
## Minnetonka, MN 55345
952-939-8200 | minnetonkamn.gov
## MINNETONKA LEGISLAT I V E PA R T NER AGENDA S
2026
League of
## Minnesota Cities
## Metro Cities
## Minnesota Chiefs of
## Police Association
## Municipal Legislative
## Commission
## Minnesota Sta te
## Fir e Chiefs Association
## Economic Development
## Association of Minnesota
## LEGISLATORSCITY COUNCIL
## Rep. P atty Acomb, 45B
## Sen. Ann Johnson Stewart, 45
## Rep. Alex Falconer, 49A
## Sen. S teve Cwodzinski, 49
## Deb Calvert, At Large
## Kimberly Wilburn, At Large
## Patsy Foster-Bolton, War d 1
## Rebecca Schack, Mayor
## Paula Ramaley, War d 3
## Kissy Coakley, War d 4
## I-494 Corridor
## Commission
## Minnesota Chapter
## American Public Works
## Association
3
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Other Topics from This Document
Tax Policy and Affordable Housing
Housing Policy and Local Control
Fiber & Utility Companies Regulation
Awareness Topics and Community Safety
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