Minnetonka City Council — Transcript

Monday, December 8, 2025

Recognition of 2025 Minnetonka Photo Contest Winners

Public Safety and Free Speech Concerns

ICE Activity and Community Inclusiveness

City Services and Community Engagement Updates

2026 Utility Rates and Infrastructure Investment

2026 Operating Budget and Property Tax Levies

Votes (6)

Approval of Consent Agenda Items 10A-10I

7-0 Approved

Moved by Council Member Calbertt · Seconded by Council Member Kley

The council reviewed and approved a series of routine administrative items as part of the consent agenda. No items were pulled for separate discussion, indicating general agreement on the proposals which included consulting agreements, easement amendments, a liquor license revocation, an ordinance related to the DEI commission, a lease renewal, electronic fund transfer authority, polling place changes, a TIFF note assignment, and an ordinance amending city fees.

Approval of Consent Agenda Items Requiring Five Votes 11A-11D

7-0 Approved

Moved by Council Member Romey · Seconded by Council Member Calbertt

The council considered and approved several consent agenda items requiring a five-vote majority. These included applications for renewed liquor licenses, a grant award for the Minnesota Housing Local Housing Trust Grant program, a Minnesota Chiefs of Police Foundation Community Partnership Grant, and a resolution accepting various gifts, donations, and sponsorships received by the city in 2025. Council Member Calbertt gave a 'shout out' to the two grants.

Introduction of Ordinance Amending City Charter Establishing the Number of Members of the Charter Commission

7-0 Approved

Moved by Council Member Calbertt · Seconded by Council Member Shaq

City Attorney Mr. Nelson introduced an ordinance to amend the city charter, formally establishing the Charter Commission's membership at nine members, with flexibility to expand to ten if a sitting council member serves. This is described as a technical, housekeeping amendment to align with historic practice and state law, and marks the first step in a multi-stage approval process, with a public hearing scheduled for January 12, 2026.

Introduction of Ordinance Amending City Charter to Reflect State Law Requirements Regarding Resident Signature Petitions

7-0 Approved

Moved by Council Member Wilburn · Seconded by Council Member Romey

City Attorney Mr. Nelson introduced a second ordinance to amend the city charter, aiming to clarify and align the requirements for resident signature petitions (for initiative and referendum) with existing state law. He emphasized that this amendment does not introduce substantive changes but provides greater detail. The process requires an introduction vote, a public hearing on January 12, 2026, unanimous council adoption, and a 90-day effective period allowing for a potential 60-day referendum period.

Public Hearing on 2026 Utility Rates and Related Items

7-0 Approved

Moved by Council Member Calbertt · Seconded by Council Member Romey

The City Council conducted a public hearing on proposed 2026 utility rates, which included increases for water, sanitary sewer, storm water, and environmental recycling. Staff presented a detailed rationale, emphasizing the need for proactive investment in aging infrastructure (particularly 1970s-era systems facing a major replacement spike by 2040), rising operational costs, and increased participation in organic recycling. The proposed changes restructure infrastructure fees, adjust water tiers to encourage conservation (lower first tier, higher third tier), and increase environmental recycling fees to cover contractual costs. One public commenter suggested doubling the highest water usage tier. Council members expressed reluctance about the significant 13-14% increase but affirmed its necessity to prevent catastrophic failures and costly special assessments seen in other communities.

Items Relating to the 2026 Operating Budget and Property Tax Levies

Action not recorded in provided transcript.

City Manager Mr. Funk and Mr. Nelson presented the comprehensive 2026 operating budget and property tax levies, outlining a proposed 7.91% increase (7.87% net including the HRA levy). The presentation detailed key drivers, including a 'business as usual' increase of 4.7% for staffing, health insurance, state mandates, and inflationary costs. Additional increases were attributed to subsidies for the Ice Arena and Marsh, significant investments in the Public Safety Master Plan (2.7%), and a dedicated 0.7% for future facility improvements (fire stations, community center). A decrease in the Capital Improvement Plan levy (0.9%) was possible due to transfers of general fund reserves. Staff provided context on homeowner impacts due to shifting property values and promoted awareness of property tax rebate programs. The council was prepared to receive public comment and consider three related resolutions.

Notable Quotes (12)

Thank you, Mayor. I second. And I just want to give a shout out to about the two grants that are in the the four consent agenda items.

Council Member Calbertt
Approval of Consent Agenda Items Requiring Five Votes 11A-11D

Uh the requested action for both is the same. It's just to introduce the ordinance and schedule the public hearing for January 12th, 2026.

Mr. Nelson, City Attorney
Introduction of Ordinance Amending City Charter Establishing the Number of Members of the Charter Commission

This first one establish establishes the number of charter commission members in the charter consistent with historic past practice which has been nine members.

Mr. Nelson, City Attorney
Introduction of Ordinance Amending City Charter Establishing the Number of Members of the Charter Commission

The intent of this amendment is simply to provide greater clarification in the charter about those requirements and and by doing so to achieve better alignment with state law.

Mr. Nelson, City Attorney
Introduction of Ordinance Amending City Charter to Reflect State Law Requirements Regarding Resident Signature Petitions

Uh this first step tonight is introduction which is four votes. Uh we will be doing a publication notice that's required uh before the public hearing and then uh assuming the council votes uh at the public hearing to adopt these amendments. It does require a unanimous consent of the council full vote and changes to the ordinance. Drafts cannot be made at that point.

Mr. Nelson, City Attorney
Introduction of Ordinance Amending City Charter to Reflect State Law Requirements Regarding Resident Signature Petitions

It's crucial that we continue investing in our capital assets to reduce that risk of catastrophic breaks and backups with our water and sewer utilities.

Mr. Nelson
Public Hearing on 2026 Utility Rates and Related Items

I appreciate that we are looking forward because other cities that have not done so... have had things recently... where they've had water manes break... and residents of those cities were special assessed. 10 to 15,000 per household. And so that is something that we obviously want to avoid...

Council Member Romey
Public Hearing on 2026 Utility Rates and Related Items

I hate to raise rates as much as we are, but I think it's better to do that than than to fall behind and have the kind of catastrophic failures that some of the neighboring communities have had.

Mayor
Public Hearing on 2026 Utility Rates and Related Items

I would suggest that that rate as proposed be doubled.

Luke Panon
Public Hearing on 2026 Utility Rates and Related Items

The vision uh for everyone's benefit is Minnitonka is an inclusive community committed to excellence where all residents, workers, and visitors are welcome in a beautiful sustainable place supported by quality, dependable city services.

Mr. Funk, City Manager
Items Relating to the 2026 Operating Budget and Property Tax Levies

Really when you look at cost of just doing the business as usual really nothing new added to the city except for the position as noted looking at a levy increase of 4.7%.

Mr. Funk, City Manager
Items Relating to the 2026 Operating Budget and Property Tax Levies

So you can really see that no matter what the levy does, it's these outside pressures that put a change in your property taxes as well too.

Mr. Nelson
Items Relating to the 2026 Operating Budget and Property Tax Levies

Ordinances & Resolutions (37)

2026 operating budget and property tax leviesOther

Item 14A, discussed with public comment and multiple resolutions.

Resolution for the Excelsier Boulevard improvement projectResolution

Item 14B, mentioned as an addendum to the agenda.

Resolution for the Cedar Lake Road and Ridgedale Drive improvement projectResolution

Item 14C, mentioned as an addendum to the agenda.

November 24, 2025 regular meeting minutesOther

Minutes approved at the meeting.

2025 Minnotonka annual photo contestOther

Recognition of winners.

Strategic PlanPlan

Guiding document for city operations, including inclusiveness and financial strength.

Trail Master PlanPlan

Long-term planning document that shapes the city budget.

Climate Action and Adaptation PlanPlan

Long-term planning document that shapes the city budget, worked on by Sustainability Commission.

Business and Community SurveyOther

Document instrumental in understanding community attitudes and feedback, used in budget framework.

Public Safety Master PlanPlan

Guiding document for public safety investments, a key budget driver.

Assessment, Renewal, and Replacement PlanPlan

Long-term planning document for city assets, shaping the budget.

Natural Resources Master PlanPlan

Outlines goals for open spaces, guided by the park board, shapes the budget.

Park Space and Trail System Plan (POST)Plan

Guided by the park board, looks at park system and capital equipment needs, shapes the budget.

Capital Improvement Plan (CIP)Plan

Five-year document for asset management, including streets, technology, equipment, parks, and trails.

Economic Improvement PlanPlan

Looks at business climate and investments in housing, shapes budget decisions.

Comprehensive PlanPlan

Long-term visioning document developed every 10 years for city infrastructure, roads, trails, and parks.

Facility PlanningPlan

Addresses needs of city buildings like the community center, Marsh, Williston, and Glen Lake Activity Center.

General services agreements with consulting engineering firms for the period of 2026 through 2028Other

Item 10A, part of consent agenda.

amendment to an existing conservation easement at 11919 Live Oak Drive and 120 Cambridge CourtOther

Item 10B, part of consent agenda.

revocation of an on sale wine and on sale 3.2 malt liquor license for Mega Pickle Ball and Pong Minnotonka LLC at 17585 Highway 7Permit

Item 10C, part of consent agenda.

Ordinance amending section 150.010 010 relating to the appointment of the diversity, equity, and inclusion DEI commission members expanding young adult member age parametersOrdinance

Item 10D, part of consent agenda.

Resolution for the radio equipment shelter lease renewal at the Ridgedale Water Tower with the Minnesota Department of TransportationResolution

Item 10E, part of consent agenda.

Resolution delegating authority for electron elect electronic fund transfersResolution

Item 10F, part of consent agenda.

Resolution designating a change in polling place locations for the 2026 state primaryResolution

Item 10G, part of consent agenda.

assignment of TIFF note related to the Shady Oak Crossing developmentOther

Item 10H, part of consent agenda.

Ordinance amending the city code section 710.005 regarding certain feesOrdinance

Item 10I, part of consent agenda.

applications for renewed liquor licenses for 2026Permit

Item 11A, part of consent agenda requiring five votes.

grant award and funding agreement for Minnesota housing local housing trust grant programOther

Item 11B, part of consent agenda requiring five votes.

Minnesota Chiefs of Police Foundation Community Partnership GrantOther

Item 11C, part of consent agenda requiring five votes.

Resolution accepting gifts, donations, and sponsorships given to the city during 2025Resolution

Item 11D, part of consent agenda requiring five votes.

Ordinance amending the city charter establishing the number of members of the charter commissionOrdinance

Item 12A, introduced for public hearing on January 12, 2026, setting charter commission membership at nine, potentially ten with a council member.

Ordinance amending the city charter to reflect state law requirements regarding resident signature petitionsOrdinance

Item 12B, introduced for public hearing on January 12, 2026, clarifying state law requirements for initiative and referendum petitions.

City council policy 12.4Policy

References an index for annual inflationary charge on municipal water and sanitary sewer connection fees.

Engineering News RecordOther

Index used to determine increases in municipal water and sanitary sewer connection fees.

Minnetonka MattersOther

City communication tool for budget input.

Minnitankka memoOther

Communication method for budget and utility rate information.

Truth in taxation meeting noticesOther

Sent in mid-November for the public hearing on the budget and levies.

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Minnetonka City Council - Minnetonka Recorder