Minnetonka City Council — Transcript
Monday, August 17, 2026
Preliminary 2027 Budget Review
Public Safety Master Plan (PSMP) Implementation and Investments
Facility Improvements and Funding Strategies
Personnel Costs and Compensation
Sustainability Initiatives and Staffing Needs
Community Survey Results and Public Engagement
Grant Funding and Financial Strength
HR Preliminary Levy and Homes Within Reach Program
Votes (3)
Support for 6.1% Base Property Tax Increase (including PSMP)
Council discussed the necessity of the proposed 6.1% base property tax levy increase. Key drivers identified were inflationary costs in continuity of operations, market and salary adjustments for staff, and the significant 24% projected increase in health insurance (with hope for better bids). A 1.6% portion of this increase is specifically for the continued implementation of the Public Safety Master Plan, including the hiring of six new full-time firefighters. Council generally acknowledged the difficulty in mitigating these pressures while maintaining service levels, appreciating staff's conservative budgeting and efforts to find potential savings.
Support for Additional 0.7% for Facility Improvements (Fire Station 2), Total Levy 6.8%
This discussion focused on an additional 0.7% levy increase for facility improvements, primarily for rebuilding Fire Station 2 and refurbishing the Community Center. The city secured $2.5 million in state bonding for Fire Station 2, but a significant local match is required for the estimated $13 million rebuild. Staff emphasized that this levy increase provides crucial financial flexibility: if a local sales tax for facility improvements is approved, these funds could accelerate repayment of Community Center debt or fund other capital needs (like the Williston Center); if not, they contribute directly to Fire Station 2 and Community Center debt issuance. Council members expressed support for this strategic approach.
Agreement on $225,000 HR Preliminary Levy for 2027
Dissent: Kimberly Wilburn, City Council at Large
The council considered certifying $225,000 as the HR preliminary levy for 2027, which is a $75,000 reduction from 2026 due to the completion of Light Rail Transit (LRT) contributions. The primary debate centered on the 'Homes Within Reach' program, supported by this levy. Council Member Kimberly Wilburn expressed strong and continued opposition, arguing the program contributes to stripping equity from low-income families and people of color, advocating for alternative housing programs. Other council members acknowledged the concern but defended the program's purpose in providing immediate affordability by reducing land costs, distinguishing its goal from market-rate equity building. Despite the dissent, a majority of the council indicated support for the proposed levy amount.
Notable Quotes (6)
I think I appreciate the um I think the chart that you do that indicates where kind of the increases show up is really helpful for us in understanding and certainly the the wage pressure and the insurance pressure is significant. So um that's hard to that's hard to bring down. There's no magic bullet for that.
I think what we you know one of the things I was really struck by in reading the staff report and feel good about is the areas where staff is saying this is our worst case scenario on the medical insurance you know we're going to re-evaluate what the marsh is going the need to transfer. Um we're going to take it, you know, there are other things that we're going to take a look at. So truly this budget is keeping in mind that we may end up here, but as we say every year and and I trust that what staff has done is put in an honest budget that doesn't have fluff in it, but we know that between now and December, there may be opportunities to save on real costs.
The point being I think you have f you have flexibility and that's the best place to be in is to have that kind of flexibility not knowing exactly where our our our path is exactly today.
Another I have one other thing just thinking about the marsh. I know that there was a time uh and I know that um mayor worome was uh very interested in sort of like a Minnotonka Foundation um to help fund things like uh fixing up the marsh and so I don't want to give up on the idea...
I'll say it again. I I think that holds within reach. Um, we keep I don't think that Minnetonka will ever change this thought process. I don't know if this is a to me it's a state issue because it's not just Minnitonka who's um funding Homes Within Reach program... And it's unfortunate that our city continues to support this program in the way that we're supporting it because I feel like the onus is on all of us here in this room. And so, um, I'm gonna continue to use my voice to say that I think we could do better and I think the money should be directed to a different type of program.
I'm not sure how to how how to change that though and still guarantee affordability for future owners. You know what I mean? So I think the pathways does that. you know, our welcome to Minnotonka does that and those are, you know, really different and and and kind of I I think are getting towards what you're talking about. And I think the homes within reach because it's almost like in some ways you're getting the equity up front because you're not paying for the land. Um, so that's kind of how I view it.
Ordinances & Resolutions (16)
The primary financial document being reviewed by the City Council.
A strategic document guiding significant investments in public safety personnel and technology.
The overarching city plan, aligning with budget priorities, particularly financial strength.
The plan for capital projects, with an anticipated $500,000 levy increase.
Future comprehensive plan requiring dedicated budget and process review.
A city initiative to be furthered by the proposed Sustainability Specialist position.
A city communication channel used for budget articles and resident education.
A city platform for budget updates and engagement.
Official notices sent to property owners detailing their preliminary tax levies.
A federal grant for which the Fire Department has applied to fund firefighter positions.
A nearly $1 million grant awarded to the Police Department for records management and the DFR program.
A crisis response grant funding a full-time employee for two years.
A multi-year plan to formalize non-union employee positions and adjust salaries based on market rates.
A housing program supported by the HR levy, designed to provide affordable homeownership.
A housing program mentioned in the context of addressing equity in homeownership.
A housing program mentioned in the context of addressing equity in homeownership.