## Agenda ## City of Minnetonka ## City Council Study Session Monday, May 11, 2026 ## 6:00 PM ## Community Center - Minnehaha Room 14600 Minnetonka Blvd. 1.Call to Order 2.Introductions/Roll Call 3.Business Items: A.2026 community survey results B.2027 budget kick-off C.June study session topics 4.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 ## City Council Agenda Item 3.A Meeting of May 11, 2026 Title:2026 community survey results ## Report from:Sarissa Seracki, Senior Management Coordinator ## Submitted through:Erik Nilsson, City Attorney ## Moranda Dammann, Assistant City Manager ## Mike Funk, City Manager ## Presenter:Sarissa Seracki Senior Management Coordinator and Peter ## Leatherman, Morris Leatherman Company Action Requested:Informational. ## Summary Statement The purpose of this agenda item is to inform the city council of the 2026 community survey results. Peter Leatherman, from the Morris Leatherman Company, will present the findings and conclusions from the 2026 community survey. ## Strategic Plan Relatability ## Community Inclusiveness The community survey results align with desired outcome 6.1 "all people feel welcome and engaged" under Community Inclusiveness. The city surveys residents on quality of life, creating a welcoming community, treating residents with respect and fairly and providing services to those of all backgrounds. ## Background Each year the city contracts with a professional survey firm to conduct a statistically valid telephone survey of residents on a variety of topics of interest. These topics range from demographics, quality of life, city services, public safety, natural environment, development and redevelopment, city parks and recreational facilities, public transit issues, city government and staff, local authority and communication. Survey results are used to inform strategic planning and budgeting decisions, help set performance targets and strengthen community engagement. It is important for residents to have the opportunity to share their opinions. It is equally important for them to feel confident that their voices are being heard. Conducting a survey is a proactive approach to initiating and completing the communication loop with the community. The City of Minnetonka is evaluated according to how well they are achieving the strategic goals. Measuring ongoing progress ensures that they are responsive to the priorities of the community they serve. By receiving ongoing feedback from residents, the city can observe trends and track progress to guide policy-making and budgeting. Finally, it is anticipated these results will play a significant role in the upcoming budgeting process. 2 Specific examples of actions taken in recent years in response to these annual evaluations include a more aggressive funding approach to new trail construction, adjustments in the city’s economic development program, adaptation of the public transit offerings, expanded recreational program offerings for youth, additional street renewal programs and technology enhancements for the use of mobile electronics and social media. In preparation for the 2026 annual community survey, at the Feb. 9, 2026 study session the Minnetonka City Council weighed in on themes to be included. Below is a list of the themes suggested and the specific question listed in the community survey. ## Theme Questions Property tax levy28 Local sales tax31-36 ## E-bikes51-53 Short-term rentals82 Teen programming100 The annual community survey also provides the necessary data to determine the results of the MERIT program evaluation, particularly the organizational component. Peter Leatherman, from the Morris Leatherman Company, will present a high level of the findings and conclusions from the 2026 community survey. ## Discussion Questions 1. Does the city council have any questions? 2. Are there any results that the council wishes to further discuss/consider for a future study session? 3. Are there any budget impacts that should be considered? ## ATTACHMENTS: ## 2026 City of Minnetonka Survey Results 3 1 THE MORRIS LEATHERMAN COMPANY City of Minnetonka 3128 Dean Court Residential Study Minneapolis, Minnesota 55416 FINAL MARCH 2026 Hello, I'm __________ of the Morris Leatherman Company, a polling firm located in Minneapolis. We've been retained by the City of Minnetonka to speak with a random sample of residents about issues facing the city. City representatives and staff are interested in your opinions and suggestions about future and current city services and offerings. I want to assure you that all individual responses will be held strictly confidential; only summaries of the entire sample will be reported. (DO NOT PAUSE) 1. Approximately, how many years have LESS THAN ONE YEAR.....3% you lived in Minnetonka? ONE TO TWO YEARS.......9% ## THREE TO FIVE YEARS...15% ## SIX TO TEN YEARS......24% ## ELEVEN - TWENTY YEARS.22% ## OVER TWENTY YEARS.....27% ## DON'T KNOW/REFUSED.....1% 2. As things now stand, how long in LESS THAN TWO YEARS....2% the future do you expect to live TWO TO FIVE YEARS......5% in Minnetonka? SIX TO TEN YEARS......17% ## 11 TO 20 YEARS........20% ## 21 TO THIRTY YRS......10% ## OVER THIRTY YEARS.....31% ## DON'T KNOW/REFUSED....15% 3. How would you rate the quality of EXCELLENT.............44% life in Minnetonka - excellent, GOOD..................52% good, only fair, or poor? ONLY FAIR..............4% ## POOR...................0% ## DON'T KNOW/REFUSED.....0% 4 2 4. What do you like most about living DON’T KNOW/REFUSED.....0% ## in Minnetonka? FRIENDLY PEOPLE.......13% ## SAFE..................10% ## OPEN SPACES............6% ## PARKS..................6% ## SCHOOLS................9% ## CITY SERVICES..........2% ## TREES/NATURE...........7% ## TRAILS.................4% ## THE LAKE..............14% ## LOCATION...............6% ## QUIET..................7% ## HOUSING/NEIGHBORHOOD..11% ## RECREATION FACILITIES..2% ## CLOSE TO JOB...........2% ## SCATTERED..............2% 5. What do you like least about living DON’T KNOW/REFUSED.....1% ## in Minnetonka? NOTHING...............24% ## HIGH TAXES............21% ## LACK OF DIVERSITY.....10% ## TRAFFIC CONGESTION....14% ## STREET MAINTENANCE.....5% ## LACK OF SIDEWALKS.....10% ## LACK OF PUBLIC TRANSIT.3% ## TOO MUCH DEVELOPMENT...7% ## NO ENTERTAINMENT.......3% ## SCATTERED..............3% 6. How welcoming, if at all, do you VERY WELCOMING........55% think Minnetonka is – is it very SOMEWHAT WELCOMING....40% welcoming, somewhat welcoming, not NOT TOO WELCOMING......3% too welcoming, or not at all wel- NOT AT ALL WELCOMING...0% ## coming? DON’T KNOW/REFUSED.....3% For each of the following, please rate the City of Minnetonka as excellent, good, only fair, or poor. ## EXC GOO FAI POO DKR 7. Creating a welcoming community for residents of all backgrounds. 30% 53% 16% 2% 0% 8. Treating all residents with respect. 35% 54% 10% 1% 1% 9. Treating all residents fairly. 37% 52% 10% 1% 1% 10. Providing services to residents of all backgrounds. 35% 48% 13% 1% 4% 5 3 11. Do you think Minnetonka is an in- STRONGLY YES..........17% clusive community committed to ex- YES...................78% cellence where all residents, NO.....................4% workers, and visitors are welcome STRONGLY NO............1% in a beautiful, sustainable place, DON’T KNOW/REFUSED.....1% supported by quality dependable city services? (WAIT FOR RESPONSE) Do you feel strongly that way? Changing topics..... I would like to read you a list of a few city services. For each one, please tell me whether you would rate the quality of the service as excellent, good, only fair, or poor. If you have no opinion, just say so.... (ROTATE LIST) ## EXC GOO FAI POO DKR 12. Police services? 46% 49% 5% 1% 0% 13. Pavement repair and patching on city streets? 22% 47% 27% 5% 0% 14. Trail maintenance? 32% 58% 8% 0% 2% 15. Park maintenance? 37% 56% 5% 0% 2% 16. Community planning? 35% 53% 5% 1% 7% 17. Fire protection? 47% 47% 4% 0% 2% 18. Recycling service? 26% 67% 5% 1% 2% 19. Snow plowing? 29% 57% 11% 3% 1% 20. Storm water management? 28% 56% 10% 0% 6% 21. Water and sanitary sewer services? 28% 62% 6% 0% 4% 22. Recreational services and programs? 36% 55% 3% 0% 7% 23. Recreation facilities? 36% 56% 2% 0% 7% 24. Senior services? 22% 51% 6% 0% 20% 25. Natural resources management? 21% 68% 4% 0% 7% ## IF ANY SERVICES WERE RATED EITHER "ONLY FAIR" OR "POOR," ASK: (n=168) 26. What changes or improvements, DON’T KNOW/REFUSED.....0% if any, would be needed in FASTER RESPONSE.......14% that service for it to be FIX POTHOLES..........43% rated "excellent" or "good?" LOWER COST.............3% ## BETTER PLOWING........11% ## BETTER DEVELOPMENT ## DECISIONS........16% ## TOO MUCH GROWTH........4% ## LARGER RECYCLING BINS..2% ## MORE REC PROGRAMS......2% ## LESS DEVELOPMENT.......2% ## SCATTERED..............3% 6 4 Moving on.... 27. When you consider the property EXCELLENT.............13% taxes you pay and the quality of GOOD..................68% city services you receive, would ONLY FAIR.............13% you rate the general value of city POOR...................1% services as excellent, good, only DON'T KNOW/REFUSED.....5% fair, or poor? As you may know, the City of Minnetonka receives no local government state aid and largely relies on property taxes to fund basic services. 28. If you could increase the property POLICE/FIRE...........25% tax levy, which ONE of these major STREETS...............32% areas would you prioritize for the PARKS AND TRAILS......23% increase – police and fire protect- OTHER SERVICE.........10% ion, street maintenance, parks and NONE OF ABOVE (VOL)....8% trails, or some other city service? DON'T KNOW/REFUSED.....2% 29. Would you favor or oppose an in- FAVOR.................80% crease in YOUR city property taxes OPPOSE................18% if it were needed to maintain city DON'T KNOW/REFUSED.....3% services at their current level? IF “OPPOSE,” ASK: (n=70) 30. What service would you be willing to see cut? ## UNSURE, 17%; NONE/CUT WASTE, 50%; POLICE, 6%; PARKS, ## 9%; SCATTERED, 18%. In Minnesota, cities and counties are permitted to ask the Legislature for permission to hold a public vote on an increase to the local sales tax to pay for improvements that are regionally significant. The sales tax is assessed in the same way as the state sales tax, meaning that items such as clothes and groceries are exempt from the tax. The City could ask voters to approve five questions for a new local HALF cent sales tax increase for up to thirty years. For your information, a HALF cent sales tax increase would be 50 cents on every $100 of taxable purchases in the City of Minnetonka. The local sales tax would expire once the projects are completed. A first referendum question is required to allow the funds from a HALF cent increase to be used to rebuild fire station #2 located off of Hopkins Crossroads near Ridgedale. 7 5 31. If the election were today, would STRONGLY SUPPORT......15% would you support or oppose a ref- SUPPORT...............67% erendum for a HALF cent sales tax OPPOSE................15% increase to rebuild the fire sta- STRONGLY OPPOSE........2% tion? (WAIT FOR RESPONSE) Do you DON’T KNOW/REFUSED.....1% feel strongly that way? A second referendum question is required to allow the funds from the same HALF cent sales tax increase to be used to rebuild fire station #3 located in the OPUS area in southeast Minnetonka. There would NOT be an additional HALF cent sales tax increase if this referendum also passed. 32. Next, if the election were today, STRONGLY SUPPORT......17% would you support or oppose a refer- SUPPORT...............66% endum to use the HALF cent sales tax OPPOSE................15% increase to rebuild the fire STRONGLY OPPOSE........2% station? (WAIT FOR RESPONSE) Do DON’T KNOW/REFUSED.....1% you feel strongly that way? A third referendum question is required to allow the funds from the same HALF cent sales tax increase to be used to connect city trails to business districts, schools, neighborhoods, and regional trails . There would NOT be an additional HALF cent sales tax increase if this referendum also passed. 33. Next, if the election were today, STRONGLY SUPPORT......18% would you support or oppose a refer- SUPPORT...............63% endum to use the HALF cent sales tax OPPOSE................14% to provide these trail connections? STRONGLY OPPOSE........3% (WAIT FOR RESPONSE) Do you feel DON’T KNOW/REFUSED.....2% strongly that way? A fourth referendum question is required to allow the funds from the same HALF cent sales tax increase to be used to upgrade the Marsh, including exterior and interior building systems, mechanical improvements to the pools and sauna areas, and renovate program spaces. There would NOT be an additional HALF cent sales tax increase if this referendum also passed. 34. Next, if the election were today, STRONGLY SUPPORT......17% would you support or oppose a refer- SUPPORT...............62% endum to use the HALF cent sales tax OPPOSE................17% to upgrade and renovate the Marsh? STRONGLY OPPOSE........2% (WAIT FOR RESPONSE) Do you feel DON’T KNOW/REFUSED.....2% strongly that way? The last referendum question is required to allow the funds from the same HALF cent sales tax increase to be used to add a park and 8 6 open space area next to the light rail station in the OPUS area. There would NOT be an additional HALF cent sales tax increase if this referendum also passed. 35. Next, if the election were today, STRONGLY SUPPORT......14% would you support or oppose a refer- SUPPORT...............62% endum to use the HALF cent sales tax OPPOSE................19% to add a park and open space area? STRONGLY OPPOSE........3% (WAIT FOR RESPONSE) Do you feel DON’T KNOW/REFUSED.....2% strongly that way? A sales tax increase would not only capture sales tax from city residents, but also from people outside the city who make purchases in Minnetonka. A University of Minnesota study projected 52% of the new sales tax revenue would come from people who live outside of Minnetonka and use city services. 36. Does that make you much more likely MUCH MORE LIKELY......39% to support the sales tax increase, SOMEWHAT MORE LIKELY..28% somewhat more likely, somewhat less SOMEWHAT LESS LIKELY...1% likely, much less likely, or does it MUCH LESS LIKELY.......0% make no difference to you? NO DIFFERENCE.........31% ## DON’T KNOW/REFUSED.....1% Moving on.... 37. Over the past year, have you called YES...................18% 9-1-1 for the Minnetonka Police NO....................82% ## Department? DON'T KNOW/REFUSED.....0% IF "YES," ASK: (n=73) 38. What was the reason? DON’T KNOW/REFUSED.....0% ## ANIMAL CONTROL........19% ## MEDICAL ISSUE.........26% ## NEIGH DISTURBANCE.....18% ## REPORT CRIME...........8% ## TRAFFIC STOP...........4% ## TRAFFIC ACCIDENT......22% ## FIRE...................3% 39. How would you rate the way EXCELLENT.............33% police employees handled the GOOD..................56% situation - excellent, ONLY FAIR..............4% good, only fair, or poor? POOR...................1% ## DON'T KNOW/REFUSED.....6% 9 7 40. Do you feel that crime in Minne- INCREASED.............14% tonka has increased, decreased, or DECREASED.............11% remained about the same during the REMAINED THE SAME.....74% past few years? DON'T KNOW/REFUSED.....1% 41. Are there areas in Minnetonka YES...................19% where you do not feel safe? NO....................80% ## DON'T KNOW/REFUSED.....1% IF "YES," ASK: (n=76) 42. In which areas do you not DON’T KNOW/REFUSED.....3% ## feel safe? AREAS WITH NO ## SIDEWALKS........17% ## BUSY INTERSECTIONS....17% ## PARKS..................1% ## RIDGEDALE.............20% ## TRAILS.................7% ## APARTMENTS............15% ## AREAS WITH NO ## LIGHTS...........21% 43. What makes you feel unsafe? DON’T KNOW/REFUSED.....1% ## LACK OF SIDEWALKS.....17% ## DARK..................24% ## SPEEDING..............17% ## RISING CRIME..........16% ## LOITERING.............18% ## LOW-INCOME AREA........7% 44. What would make you feel more DON’T KNOW/REFUSED.....3% safe? SIDEWALKS.............18% ## MORE POLICE PATROL....42% ## STREET LIGHTS.........30% ## MORE PEOPLE AROUND.....3% ## REDEVELOPMENT..........4% 45. How would you rate the amount of TOO MUCH...............3% police patrolling in your neighbor- ABOUT RIGHT AMOUNT....84% hood - would you say it is too much, NOT ENOUGH............13% about the right amount, or not DON'T KNOW/REFUSED.....0% enough? 46. During the past year, have you had YES...................23% any interaction with a Minnetonka NO....................76% ## Police Officer? DON'T KNOW/REFUSED.....1% IF "YES" ASK: (n=93) 10 8 47. Did the police officer act YES...................95% in a professional manner? NO.....................4% ## DON'T KNOW/REFUSED.....1% IF "NO," ASK: (n=4) 48. Why do you feel that way? ## RUDE, 75%; UNPROFESSIONAL, 25%. The Minnetonka Police Department has police engagement events during the year, such as Night to Unite, Summer Fest, City Open House, Police Academy, or Shop with a Cop. 49. Before this survey, were you very VERY AWARE............35% aware, somewhat aware, or not too SOMEWHAT AWARE........45% ## aware of the Police Department’s NOT TOO AWARE.........21% community engagement efforts? DON’T KNOW/REFUSED.....0% 50. Would you like to see more, less, MORE..................16% or about the same level of commun- LESS...................1% ity engagement by the Police ABOUT SAME LEVEL......81% ## Department? DON’T KNOW/REFUSED.....2% Changing topics.... 51. Do you or members of your household YES...................15% own an e-bike? NO....................84% ## DON’T KNOW/REFUSED.....1% With the increase of e-bike use.... 52. Do you have any concerns about their use? (IF “YES,” ASK:) What are those concerns? ## UNSURE, 3%; NO, 75%; CAUSE ACCIDENTS, 3%; SPEEDING, 7%; ## NO HELMETS, 2%; UNSAFE FOR PEDESTRIANS ON SIDEWALKS/TRAILS, ## 3%; LACK OF E-BIKE LANES, 2%; SCATTERED, 5%. ## IF “YES” IN QUESTION #52, ASK: (n=90) 53. How concerned are you about VERY CONCERNED........35% the use of e-bikes in the City SOMEWHAT CONCERNED....62% of Minnetonka – are you very NOT TOO CONCERNED......3% concerned, somewhat concerned, DON’T KNOW/REFUSED.....0% or not too concerned? 11 9 54. Over the past year, have you YES....................7% ## called the Minnetonka Fire De- NO....................92% partment for any reason other than DON'T KNOW/REFUSED.....1% 9-1-1? IF "YES," ASK: (n=29) 55. What was the reason? DON’T KNOW/REFUSED.....3% ## GAS/CO2 CHECK.........24% ## MINOR MEDICAL ISSUE...28% ## LOOSE ANIMALS.........10% ## REPORT RECREATIONAL ## FIRE.............31% ## OBTAIN INFORMATION.....3% 56. How would you rate the way EXCELLENT.............62% fire employees handled the GOOD..................31% situation - excellent, ONLY FAIR..............3% good, only fair, or poor? POOR...................3% ## DON'T KNOW/REFUSED.....0% Moving on.... 57. In general, do you think the City TOO MUCH...............1% is doing too much, too little, or TOO LITTLE............10% about the right amount in protect- ABOUT RIGHT AMOUNT....88% ing the environment? DON'T KNOW/REFUSED.....1% How would you rate City efforts in the protection of each of the following areas - would you say the City of Minnetonka has done an excellent job, good job, only fair job, or poor job? ## EXC GOO FAI POO DKR 58. Wetlands, ponds and streams? 27% 56% 15% 2% 0% 59. Forested areas? 30% 56% 12% 3% 0% 60. How would you rate the overall EXCELLENT.............24% quality of the natural environment GOOD..................66% in Minnetonka - excellent, good, ONLY FAIR.............10% only fair, or poor? POOR...................0% ## DON'T KNOW/REFUSED.....0% 61. How would you rate the water qual- EXCELLENT.............22% ity in city lakes, ponds and GOOD..................62% streams - excellent, good, only ONLY FAIR.............15% fair, or poor? POOR...................1% ## DON'T KNOW/REFUSED.....1% 12 10 I would like to read you a list of issues relating to the local environment and sustainability. For each of the following, please tell me if that issue is very important for the City to take action on, somewhat important, not too important, or not at all important. (ROTATE) ## VRI SMI NTI NAA DKR 62. Energy conservation? 42% 39% 16% 3% 0% 63. Water conservation? 49% 35% 12% 4% 0% 64. Expanded mass transit options? 16% 44% 28% 12% 1% 65. Climate change? 26% 37% 30% 7% 0% 66. Reducing waste? 28% 47% 22% 4% 0% 67. Improving storm water management? 19% 48% 24% 9% 1% ## IF “VERY IMPORTANT” OR “SOMEWHAT IMPORTANT” IN QUESTIONS #62- #67, ASK: (n=368) 68. Would you be willing to see STRONGLY YES..........10% a property tax increase to YES...................67% fund the City’s work on NO....................17% ## these issues? (WAIT FOR RE- STRONGLY NO............3% ## SPONSE) Do you feel strongly DON’T KNOW/REFUSED.....3% that way? Changing topics.... 69. Does your household contract for YES...................76% trash collection? NO....................22% ## DON’T KNOW/REFUSED.....2% IF “YES,” ASK: (n=305) Most communities have one of two systems for trash collection. Minnetonka operates under an open collection system, in which residents choose from a list of haulers licensed by the city to provide residential trash collection. Some cities use an arrangement in which the city manages the collection system, negotiates prices and standardizes services for residential trash collection. 70. Do you prefer the current open CURRENT/STRONGLY......26% collection system or a city- CURRENT...............55% managed collection system? CITY-MANAGED..........13% ## (WAIT FOR RESPONSE) Do you CITY-MANAGED/STRONGLY..4% feel strongly that way? DON’T KNOW/REFUSED.....2% Continuing.... 13 11 71. Does your household participate in YES...................32% collecting organic waste? NO....................67% ## DON’T KNOW/REFUSED.....1% IF “NO,” ASK: (n=269) 72. Could you tell me one or two DON’T KNOW/REFUSED.....1% reasons why your household does NOT ENOUGH............15% not participate in an organic RENT/ASSOCIATION......18% waste program? TOO EXPENSIVE..........3% ## BAD SMELL.............14% ## COMPOST AT HOME........5% ## NO INTEREST...........37% ## LACK OF INFORMATION....7% 73. Were you aware of the organics waste NO....................35% dumpster located at the Recycling YES/YES...............25% ## Center at the Public Works building? YES/NO................40% (IF “YES,” ASK:) Have you ever used DON’T KNOW/REFUSED.....0% this service? 74. Does your household participate in YES...................82% the curbside recycling program? NO....................18% ## DON’T KNOW/REFUSED.....0% ## IF “YES” IN QUESTION #74, ASK: (n=327) 75. How would you rate the curb- EXCELLENT.............28% side recycling program – ex- GOOD..................66% cellent, good, only fair, or ONLY FAIR..............6% poor? POOR...................1% ## DON’T KNOW/REFUSED.....0% ## IF “NO” IN QUESTION #74, ASK: (n=72) 76. Could you tell me one or two DON’T KNOW/REFUSED.....0% reasons why your household does NOT ENOUGH............14% not participate in the curbside RENT/ASSOCIATION......70% ## recycling program? BINS ARE TOO SMALL.....8% ## DON’T LIKE RECYCLING...3% ## TAKE MORE ITEMS........2% ## LACK OF INFORMATION....4% Currently, residents are billed for utilities, including water, sewer, storm water, and recycling every three months. 14 12 77. Do you prefer the current billing CURRENT...............72% cycle or would you prefer a monthly MONTHLY...............26% ## bill? DON’T KNOW/REFUSED.....3% Moving on.... The City strives to balance the rights of individual property owners to reasonably develop their properties, with the interests of the wider community. 78. How successful do you think the VERY SUCCESSFUL.......22% City has been in maintaining this SOMEWHAT SUCCESSFUL...55% balance - very successful, some- NEITHER SUC/UNSUC.....15% what successful, neither success- SOMEWHAT UNSUCCESSFUL..2% ful nor unsuccessful, somewhat VERY UNSUCCESSFUL......0% unsuccessful, or very unsuccess- DON'T KNOW/REFUSED.....6% ful? 79. Do you feel Minnetonka residents YES...................86% have appropriate opportunities for NO.....................7% input into the zoning and develop- DON'T KNOW/REFUSED.....7% ment decision-making process? IF "NO," ASK: (n=26) 80. What would be the best way for you to provide input to the City? ## UNSURE, 4%; ATTEND COUNCIL MEETINGS, 35%; SURVEY, 15%; ## VISIT CITY HALL, 8%; NEIGHBORHOOD MEETINGS, 12%; ## EMAIL, 27%. Minnetonka Matters is a website to increase community engagement by offering a platform for residents to learn what is going on in the city. 81. Prior to this survey, were you YES...................69% ## aware of Minnetonka Matters? NO....................30% ## DON’T KNOW/REFUSED.....1% Currently, the City registers all rental properties, including Airbnb and VRBO. 82. Would you support additional regu- YES...................56% lations on short-term rentals in NO....................35% ## Minnetonka? DON’T KNOW/REFUSED....10% On another topic.... 15 13 For each of the following Minnetonka facilities or offerings, please tell me if you or members of your household have visited it during the past year. Then, for each one you or members of your household have visited, please rate it as excellent, good, only fair, or poor. If you have no opinion, just say so.... ## NOT USE USE USE USE DK/ ## USE EXC GOO FAI POO REF 83. Parks? 14% 34% 51% 2% 0% 0% ## IF RESPONDENT USES PARKS, ASK: (n=346) 84. What park amenities does your household use most often? ## (ROTATE AND READ LIST) ## ATHLETIC FIELDS.....................8% ## PICKLEBALL COURTS..................11% ## OFF-LEASH DOG AREAS................13% ## OUTDOOR ICE RINKS...................2% ## PLAYGROUND EQUIPMENT...............13% ## TENNIS COURTS.......................5% ## WALKING TRAILS.....................33% ## BASKETBALL COURTS...................2% ## BEACH...............................5% ## MOUNTAIN BIKING TRAIL...............5% ## SAUNA IN THE PARKS..................0% ## OTHER (________________________)....2% ## DON’T KNOW/REFUSED..................1% ## NOT USE USE USE USE DK/ ## USE EXC GOO FAI POO REF 85. Minnetonka Senior services? 81% 8% 10% 1% 0% 0% 86. The Marsh Wellness Center? 70% 12% 17% 1% 0% 0% ## IF RESPONDENT USES MARSH WELLNESS CENTER, ASK: (n=118) 16 14 87. What amenities do you use most POOLS.................23% ## often? FITNESS EQUIPMENT.....27% ## GROUP FITNESS CLASSES.15% ## TRACK..................3% ## MEDITATION AREA........5% ## CAFÉ..................10% ## SPA...................10% ## PHYSICAL THERAPY.......5% ## RETAIL SHOP............0% ## OTHER (VOL.)...........1% ## DON’T KNOW/REFUSED.....0% ## NOT USE USE USE USE DK/ ## USE EXC GOO FAI POO REF 88. The Williston Fitness Center? 68% 7% 22% 3% 0% 0% ## IF RESPONDENT USES WILLISTON FITNESS CENTER, ASK: 89. What amenities do you use most FITNESS EQUIPMENT.....31% often? GYMNASIUM..............8% ## POOL..................27% ## TENNIS COURTS..........9% ## GROUP FITNESS CLASSES..6% ## INDOOR PLAYGROUND.....13% ## BATTING CAGES..........6% ## OTHER (VOL.)...........0% ## DON’T KNOW/REFUSED.....1% ## NOT USE USE USE USE DK/ ## USE EXC GOO FAI POO REF 90. Minnetonka Community Center? 55% 15% 29% 2% 0% 0% 91. Shady Oak Beach? 39% 25% 33% 3% 0% 0% 92. Glen Lake Skate Park? 82% 6% 10% 2% 0% 0% 93. Gray's Bay Marina? 52% 18% 27% 3% 0% 0% 94. Ice Arena? 75% 5% 18% 3% 0% 0% ## IF RESPONDENT USES ICE ARENA, ASK: (n=102) 95. Do you primarily use the ice ICE SKATING/LESSONS....7% arena for figure skating and PUBLIC SKAT/OPEN HOCK.66% lessons, public skating and YOUTH HOCKEY..........26% open hockey, or youth hockey? OTHER (VOL.)...........0% ## DON’T KNOW/REFUSED.....1% 17 15 ## NOT USE USE USE USE DK/ ## USE EXC GOO FAI POO REF 96. Trails? 14% 34% 50% 2% 0% 0% ## IF RESPONDENT USES TRAILS, ASK: (n=345) 97. Do you use trails primarily RECREATIONAL..........87% for recreational purposes, COMMUTING..............1% commuting, or to go to a spec- SPECIFIC DESTINATION...4% ific destination? ALL (VOL.).............8% ## DON'T KNOW/REFUSED.....0% 98. Does the current mix of recrea- YES...................97% tional facilities in the city NO.....................1% adequately meet the needs of your DON’T KNOW/REFUSED.....2% household? IF “NO,” ASK: (n=4) 99. What additional recreational facilities would you like to see offered? ## DOG PARK, 50%; SOCCER FIELDS, 25%; TEEN CENTER, 25%. Thinking about programs for teenagers in the City of Minnetonka.... 100. Do you think the city has too many, TOO MANY...............3% too few, or about the right amount? TOO FEW...............22% ## ABOUT RIGHT AMOUNT....62% ## DON’T KNOW/REFUSED....13% Moving on.... I would like to read you a short list of events offered by the City of Minnetonka. For each one, tell me first if you are aware of it. For those you have heard of, tell me if you have partici- pated in it.... (ROTATE) ## NOT YES YES DK/ ## AWA PAR NOT REF 101. Summer Farmers Market? 12% 66% 22% 0% 102. Tree Sale? 23% 26% 51% 0% 103. Summer Fest? 11% 55% 35% 0% 104. Winters Farmers Market? 19% 33% 48% 0% 105. Kids’ Fest? 20% 31% 49% 0% 18 16 ## NOT YES YES DK/ ## AWA PAR NOT REF 106. Burwell Spooktacular? 20% 35% 45% 0% 107. Entertainment in the Park, such as music and movies? 9% 58% 33% 0% 108. Events at Ridgedale Commons, such as the Light Up the Commons and music events? 14% 41% 46% 0% Moving on to public transit.... 109. Have you taken a bus or public YES...................22% transit in Minnetonka during the NO....................78% two years? DON'T KNOW/REFUSED.....1% IF "YES," ASK: (n=86) 110. How often do you take a bus or DAILY..................5% public transit - daily, couple COUPLE TIMES/WEEK......5% times a week, weekly, couple WEEKLY................12% times a month, monthly, or COUPLE TIMES/MONTH....11% less often? MONTHLY................8% ## LESS OFTEN............58% ## DON’T KNOW/REFUSED.....2% 111. Typically, what is your rea- DON’T KNOW/REFUSED.....0% son for taking the bus or AVOID CONGESTION......10% public transit? SHOPPING..............14% ## SCHOOL.................0% ## SPORTING EVENT.........8% ## SAVE MONEY.............7% ## STATE FAIR............30% ## SPECIAL EVENT.........13% ## WORK..................11% ## ENTERTAINMENT..........7% ## IF "NO" IN QUESTION #109, ASK: (n=311) 112. Why haven't you taken the DON’T KNOW/REFUSED.....1% ## bus? PREFER TO DRIVE.......55% ## AGE/HEALTH.............7% ## INCONVENIENT TIMES.....3% ## NO NEED...............21% ## NO ROUTE TO ## DESTINATION.......2% ## NEED CAR...............8% ## AVOID PARKING..........2% ## SCATTERED..............2% 19 17 113. Have you or members of your house- NO....................47% hold used transportation services, YES/FREQUENTLY.........3% such as Uber or Lyft? (IF “YES,” YES/OCCASIONALLY......25% ASK:) Do you use them frequently, YES/RARELY............26% occasionally, or rarely? DON’T KNOW/REFUSED.....0% 114. Are you aware of individual public NO....................34% transportation options, such as YES/YES................6% ## Metro Mobility, Veteran service, and YES/NO................59% ## TransitLink? (IF “YES,” ASK:) Have DON’T KNOW/REFUSED.....1% you or members of your household used these types of services? 115. Is the cost of transportation a MAJOR..................1% major problem for your household, MINOR.................15% a minor problem, or not a problem NOT A PROBLEM.........84% at all? DON’T KNOW/REFUSED.....1% For each of the following, please tell me if you think it should be a top priority for the City, high priority, moderate priority, or not a priority at all. ## TOP HIG MOD NOT DKR 116. Transit bus services? 8% 32% 48% 12% 0% 117. Light rail connections? 10% 31% 44% 15% 0% 118. Rideshare? 4% 30% 53% 13% 1% 119. Senior transportation? 23% 48% 21% 4% 4% 120. Transportation for the disabled? 28% 51% 16% 3% 3% ## The Southwest Light Rail Transit/Greenline Extension will be a high-frequency train serving the southwest metro area starting in 2027. The LRT line will connect to other rail lines and high- frequency bus routes in downtown Minneapolis, providing access to other areas in the Twin Cities. 121. How likely are you or members of VERY LIKELY............8% your household to use this service SOMEWHAT LIKELY.......29% when it opens in 2027 – very likely, NOT TOO LIKELY........28% somewhat likely, not too likely, or NOT AT ALL LIKELY.....33% not at all likely? DON’T KNOW/REFUSED.....2% Changing topics.... 122. How much first-hand contact have QUITE A LOT............5% you had with the Minnetonka City SOME..................30% Staff - quite a lot, some, very VERY LITTLE...........43% little, or none at all? NONE AT ALL...........23% ## DON'T KNOW/REFUSED.....0% 20 18 123. From what you know, how would you EXCELLENT.............14% rate the job performance of the GOOD..................75% Minnetonka City Staff - excel- ONLY FAIR..............8% lent, good, only fair, or poor? POOR...................1% ## DON'T KNOW/REFUSED.....3% 124. During the past year, have you YES...................31% visited or contacted Minnetonka NO....................68% City Hall in-person, on the tele- DON'T KNOW/REFUSED.....1% phone, by online service request system, or by email? IF "YES," ASK: (n=122) 125. On your last contact with the POLICE DEPARTMENT......5% City, which department did you FIRE DEPARTMENT........0% ## contact - the Police Depart- PUBLIC WORKS...........4% ## ment, Fire Department, Public UTILITY BILLING.......31% ## Works, Utility Billing, Asses- ASSESSOR’S OFFICE......6% ## sor's Office, Planning/Zoning, PLANNING/ZONING........7% ## Natural Resources, Building NATURAL RESOURCES......4% ## Inspections, Engineering, Re- BUILDING INSPECTIONS...3% ## cycling, Recreation Services, ENGINEERING............0% ## General Information, Senior RECYCLING..............4% ## Services, or Administration or RECREATION SERVICES...16% City Council? GENERAL INFORMATION...14% ## SENIOR SERVICES........3% ## ADMIN/CITY COUNCIL.....4% ## DON'T KNOW/REFUSED.....0% Thinking about your last contact with the City, for each of the following characteristics, please rate the service as excellent, good, only fair, or poor.... ## EXC GOO FAI POO DKR 126. Ease of reaching a City Staff member who could help you? 30% 60% 7% 3% 0% 127. Courtesy of the City Staff? 35% 57% 7% 1% 0% 128. Efficiency of the City Staff? 36% 54% 9% 1% 0% 129. Professionalism of the City Staff? 43% 54% 3% 0% 0% Moving on.... 21 19 130. What is your primary source of in- DON’T KNOW/REFUSED.....0% ## formation about Minnetonka City MINNETONKA MEMO.......43% government and its activities? LOCAL NEWSPAPER.......10% ## (DO NOT READ LIST/ONLY CIRCLE CITY WEBSITE..........14% ## MINNETONKA MEMO IF STATED) WORD OF MOUTH..........8% ## CITY EMAIL/TEXT ## SUBSCRIPTION........4% ## SOCIAL MEDIA..........12% ## CITY NEWSLETTER........8% ## SCATTERED..............2% 131. If you could choose the best way DON’T KNOW/REFUSED.....0% for you to receive information MINNETONKA MEMO.......43% about your City government and the DIRECT MAIL...........10% issues facing the community, what LOCAL NEWSPAPER........7% would it be? (READ LIST) CITY EMAIL/TEXT ## SUBSCRIPTION........7% ## CITY WEBSITE..........11% ## WORD OF MOUTH..........4% ## SOCIAL MEDIA..........10% ## CITY NEWSLETTER........8% ## SCATTERED..............1% The City publishes a monthly newsletter, Minnetonka Memo, sent to each household. 132. Do you receive this newsletter? NO....................13% (IF “YES,” ASK:) Do you regularly YES/YES...............72% read the newsletter? YES/NO................15% ## DON'T KNOW/REFUSED.....0% IF "YES/YES," ASK: (n=289) 133. How would you evaluate its EXCELLENT.............32% content, format, and useful- GOOD..................66% ness - excellent, good, only ONLY FAIR..............2% fair, or poor? POOR...................0% ## DON'T KNOW/REFUSED.....0% The City is considering changing the Minnetonka Memo from monthly to every other month. 134. Would you support or oppose SUPPORT...............68% this change? OPPOSE................31% ## DON’T KNOW/REFUSED.....1% 22 20 135. Have you or any member of your YES...................51% household accessed the City of NO....................49% Minnetonka website, DON'T KNOW/REFUSED.....1% Minnetonkamn.gov, for information about city services, news, and events? IF "YES," ASK: (n=202) 136. How would you evaluate the EXCELLENT.............10% City website – excellent, GOOD..................80% good, only fair, or poor? ONLY FAIR.............10% ## POOR...................1% ## DON'T KNOW/REFUSED.....0% The City streams its City Council and other public meetings on its website. Meetings are archived and can also be viewed any time after their original airing. 137. Have you ever viewed or NO....................68% listened to meetings from the YES/YES...............16% City website? (IF “YES,” YES/NO................16% ## ASK:) Do you typically watch DON’T KNOW/REFUSED.....0% or listen to the meetings LIVE? 138. Do you use social media? (IF “YES,” NO....................23% ASK:) What social media platform do INSTAGRAM..............6% you prefer to use? FACEBOOK..............50% ## NEXTDOOR...............4% ## X/TWITTER..............8% ## YOUTUBE................3% ## TIKTOK.................5% ## LINKEDIN...............2% 139. Have you used the City online YES...................17% service request system? NO....................83% ## DON’T KNOW/REFUSED.....1% IF “YES,” ASK: (n=67) 140. How would you rate your ex- EXCELLENT.............15% perience using the online ser- GOOD..................78% vice request system – excel- ONLY FAIR..............8% lent, good, only fair, or POOR...................0% ## poor? DON’T KNOW/REFUSED.....0% Changing topics.... 23 21 141. Did you vote in the 2024, 2025 2024...................3% or both elections? 2025...................6% ## BOTH..................71% ## NO....................21% ## DON’T KNOW/REFUSED.....0% IF “2024,” “2025,” OR “BOTH,” ASK: (n=318) 142. Did you vote early, at the EARLY.................26% polling place, or by absentee POLLING PLACE.........57% ## ballot? ABSENTEE BALLOT.......17% ## DON’T KNOW/REFUSED.....1% ## IF “EARLY” OR “POLLING PLACE,” ASK: (n=261) For each of the following, please rate the City as excellent, good, only fair, or poor.... ## EXC GOO FAI POO DKR 143. Information provided prior to the election? 37% 56% 5% 0% 2% 144. Courtesy of the election staff? 43% 51% 5% 0% 1% Now, just a few more questions for demographic purposes.... Could you please tell me how many people in each of the following age groups live in your household; please be sure to include yourself.... 145. First, persons 65 or over? 0.....................72% 1.....................13% ## 2 OR MORE.............15% ## REFUSED................0% 146. Adults under 65? 0.....................23% 1.....................16% 2.....................56% ## 3 OR MORE..............5% ## REFUSED................0% 147. School-aged or preschool 0.....................70% children? 1......................7% 2.....................17% ## 3 OR MORE..............7% ## REFUSED................0% 24 22 148. Do you own or rent your present OWN...................74% residence? RENT..................26% ## REFUSED................1% IF "OWN," ASK: (n=295) 149. Which of the following cate- UNDER $400,000........19% gories would contain the $400,000-$600,000.....45% approximate value of your $600,001-$800,000.....26% residential property - under OVER $800,000..........7% ## $400,000, $400,000-$600,000, DON’T KNOW.............2% $600,001-$800,000, or over REFUSED................1% $800,000? 150. What is your age, please? 18-24..................5% ## (READ CATEGORIES) 25-34.................13% 35-44.................23% 45-54.................18% 55-64.................16% ## 65 AND OVER...........26% ## REFUSED................0% 151. Which of the following categories WHITE.................73% represents your ethnicity - AFRICAN-AMERICAN......11% ## White, African-American, Hispanic- HISPANIC-LATINX........6% ## Latinx, Asian-Pacific Islander, ASIAN-PACIFIC ISLANDER.7% Native American, or something NATIVE AMERICAN........1% ## else? (IF "SOMETHING ELSE," ASK:) SOMETHING ELSE.........0% What would that be? MULTI/BI-RACIAL........3% ## DON'T KNOW.............0% ## ELSE:_____________________________ REFUSED................0% 152. Is a language other than English REFUSED................0% spoken in your household? (IF NO/ENGLISH............90% “YES,” ASK:) What would that be? YES/SPANISH............4% ## YES/CHINESE............2% ## ELSE: _____________________________ YES/HMONG..............3% ## YES/SOMALI.............2% 153. What is your gender identity? MALE..................47% ## FEMALE................52% ## NON-BINARY.............1% ## REFUSED................0% 154. Ward WARD ONE..............28% ## WARD TWO..............25% ## WARD THREE............24% ## WARD FOUR.............23% 25 ## City Council Agenda Item 3.B Meeting of May 11, 2026 Title:2027 budget kick-off ## Report from:Darin Nelson, Finance Director ## Submitted through:Erik Nilsson, City Attorney ## Moranda Dammann, Assistant City Manager ## Mike Funk, City Manager ## Presenter:Mike Funk, City Manager & Darin Nelson, Finance Director Action Requested:Provide staff with 2027 budget priorities and levy direction. ## Summary Statement This study session is the official kick-off to the 2027 budget season. The budget kick-off presentation will provide a high-level overview of the budget preparation process, factors affecting the budget including facility improvement updates, forecasted levy estimates and an overview of Priority Based Budgeting. ## Strategic Plan Relatability ## Financial Strength The annual budget relates to desired outcome 1.1 "high level creditworthiness" by ensuring the city's continued strong fiscal management. ## Background The development of the annual budget is a multifaceted project that occurs almost year-round and is guided by the city's strategic plan. Historically, the council reviews the draft Capital Improvement Program (CIP) in early summer, followed by another study session in August to review the operating budget, then adopts the official preliminary budget and levy in September, and finalizes the CIP. A final study session is held in November to review the draft operating budget, followed by a public meeting and council adoption in December. A few years ago, an additional budget kick-off meeting was added to the calendar to gather council feedback and input on budget priorities and expectations as the budget began to be developed. In addition, this study session provides a high-level overview of the process and factors influencing the 2027 tax levy and budget. The council will review the 2027-2031 CIP at the June 15 study session. Staff have been reviewing projects and updating long-term projections to ensure the sustainability of the various capital and enterprise funds involved with capital outlay projects. As in the last few years, a recurring theme among directors and project managers is the continued increase in the cost of goods and services. Inflation has moderated from the highs seen earlier this decade, but market uncertainty remains, particularly amid the rapid rise in oil prices and the ongoing tariff impacts. 26 As with capital projects, staff anticipate that this market uncertainty will again put pressure on the operating budget. During the development of the current 2026 budget, staff forecast a 9 percent levy increase in 2027. At the time, the projected increase included: Implementing year four of a multi-year public safety master plan, which was projected at that time 6 full-time firefighters - $1.1 million Additional operator to cover extended hours in the real-time operational center - $140,000 Year 2 of a 10-year lease with Axon for Drones as First Responders. Year one was funded through the CIP, and years 2 through 10 are planned to be funded from the General Fund at $300,000 annually. Continuing with the restoration of the Capital Improvement Program (CIP) levy - $1 million The General Fund ended 2025 with a positive budget variance of approximately $3.0 million. This surplus was a direct result of expenditures being $1.2 million below budget, while building permit revenue and investment earnings were $2.2 million above anticipated. This surplus will now help supplant future capital funding by reducing projected capital levy requests by $2.5 million over the next 5 years. The combination of reserves buying down the levy, refined operational forecasts and other programmatic changes has reduced the 2027 projected levy from 9 percent to approximately 7 percent, including 2.1 percent dedicated to implementing the public safety plan. This levy estimate is still very preliminary, and several factors can increase or decrease the levy from now until the August study session. In addition to the above items under consideration for 2027, other items of interest will need to be considered in developing the budget. Most notable are the two facility studies for fire and recreational building improvements. The sales tax option is still working its way through the legislature. Staff will provide a status update at the study session. The community center and Williston Fitness Center are not part of the local sales tax financing options. As you may recall, the council approved a small, dedicated levy in 2026 that could potentially fund Fire Station #2 and/or one or both of the recreation facilities. For taxes payable in 2027, residential property owners will likely continue to experience a shift in the property tax burden as residential property values outpace commercial valuations. Apartment valuations rebounded this past year after declining the previous year. Commercial valuations have remained stable, with only a slight increase this past year. Staff is awaiting final tax rate calculations from Hennepin County to estimate the impact on residential property owners. This tax rate information typically becomes available mid-summer. This report is intended to provide high-level insight into the challenges and opportunities in developing the 2026 budget. Staff would also appreciate the council's feedback on budget priorities, including but not limited to operations, programming and capital projects. The annual community survey results may trigger additional budget considerations. Lastly, the levy is impacted by the budget decisions made during the development process. This budget kick-off is an opportunity for staff to hear the council's direction and desires, allowing staff sufficient time to work on the preliminary budget before the August study session and preliminary levy approval in September. This report includes the 2027 Financial Management Plan. Staff will provide a detailed overview during the study session. As mentioned earlier, staff will also review financing options for building improvements. Governments across the country are moving away from traditional, incremental budgeting toward strategic, community-focused budgeting that aligns resources with long-term goals and public priorities. This Rethinking Budgeting Initiative identifies key principles for local governments, including: Balancing revenues with expenses to avoid deficits, 27 Align budgets with strategic goals and community needs, Adapt to change rather than rigidly follow past patterns, Avoid passing costs to future generations, Use budgeting as a policy and communication tool, not just an accounting document. The city's strategic plan is an integral part of the city's budget process and drives budget decisions and outcomes. To ensure resources target priorities, the city is beginning the Rethinking Budgeting process through both the strategic plan and program budgeting, using a Priority-Based Budgeting (PBB) application. The premise of program budgeting is to group spending by program outcomes rather than by line items. By identifying programs and associated costs, and their relevance to the strategic plan and the community served, the city can focus on providing a high level of service on the highest priorities rather than spreading resources across programs that may not align with current priorities. PBB has allowed the city to identify programs, assign costs to these programs and finally score the programs in a relatively short period of time. Preliminary results from this first run were received last week. Staff is analyzing the results but still has a tremendous amount of data to review. Staff will review an internal dashboard with the council during the study session. ## Discussion Questions 1. Does the council have priorities to be considered for 2027, including but not limited to operations, programming and capital projects? 2. Regarding facility improvements, are there specific projects the city should consider as the highest priority? If yes, are there preferred financing methods, timeframes or other prioritizations that should be considered? Is there support to consider improvements to the community center for 2027? ## ATTACHMENTS: ## Financial Management Plan 28 ## CIty of Minnetonka ## Financial Management Plan 2025 2026 2027 2028 2029 2030 2031 ## Actual ## Budget ## Prelim. Budget ## Forecast ## Forecast ## Forecast ## Forecast ## General FundRevenue Property Taxes 43,066,755 47,645,500 49,615,300 51,501,200 53,449,600 55,462,500 57,542,200 ## License & Permit 6,074,181 4,107,000 4,333,300 4,333,300 4,333,300 4,333,300 4,333,300 ## Intergov 2,736,626 2,180,500 2,180,500 2,180,500 2,180,500 2,180,500 2,180,500 ## Transfers 1,542,000 1,667,700 1,739,500 1,797,800 1,858,800 1,922,500 1,989,100 ## All Other 5,724,581 4,594,900 4,709,800 4,827,600 4,948,300 5,072,100 5,199,000 ## Non-Property Tax Revenue 16,077,388 12,550,100 12,963,100 13,139,200 13,320,900 13,508,400 13,701,900 ## Total GF Rev 59,144,143 60,195,600 62,578,400 64,640,400 66,770,500 68,970,900 71,244,100 ## Expenditures General Services 8,441,476 9,594,200 9,987,600 10,317,200 10,657,700 11,009,500 11,372,900 ## Public Safety 25,414,353 27,729,200 28,866,100 29,818,700 30,802,800 31,819,300 32,869,400 ## Engineering, Streets & Facilities 8,206,808 8,754,300 9,113,300 9,414,100 9,724,800 10,045,800 10,377,400 ## Parks & Environment 9,148,852 5,075,800 5,284,000 5,458,400 5,638,600 5,824,700 6,017,000 ## Recreation 0 4,701,900 4,894,700 5,056,300 5,223,200 5,395,600 5,573,700 ## Development 3,746,373 4,162,000 4,332,700 4,475,700 4,623,400 4,776,000 4,933,700 ## All Other 59,009 100,000 100,000 100,000 100,000 100,000 100,000 ## Total GF Exp 55,016,871 60,117,400 62,578,400 64,640,400 66,770,500 68,970,900 71,244,100 ## Rev over Exp 4,127,272 78,200 - - - - - ## Capital Transfers Out 900,000 2,550,000 750,000 350,000 1,175,000 150,000 50,000 ## Operating Transfers Out 178,687 78,20 000000 YrEnd avail fund bal (BudStabiliz+Unassign after tsf) 29,064,091 26,514,091 25,764,091 25,414,091 24,239,091 24,089,091 24,039,091 % of next yrs budget 48.3% 42.7% 39.9% 38.1% 35.1% 33.8% 32.7% YrEnd $ amt above 40% 6,331,120 1,673,581 (93,304) (1,295,322) (3,350,480) (4,409,685) (5,398,971) ## Budget Stabiliz Bal after all future years Cap Tsfs 24,039,091 24,039,091 24,039,091 24,039,091 24,039,091 24,039,091 24,039,091 Budget Stabiliz % after all future years Cap Tsfs 40.0% 38.4% 37.2% 36.0% 34.9% 33.7% 32.7% ## Wages 3.000% 3.000% 3.000% 3.000% 3.000% ## Benefit & Market 2.000% 1.000% 1.000% 1.000% 1.000% ## Other Costs 0.500% 0.500% 0.500% 0.500% 0.500% ## Total Inflator 5.500% 4.500% 4.500% 4.500% 4.500% ## Special Revenue Fund LeviesIce Arena 200,000 100,000 100,000 100,000 100,000 100,000 ## The Marsh 200,000 350,000 350,000 350,000 350,000 350,000 ## Total SRF Levies 400,000 450,000 450,000 450,000 450,000 450,000 100.0% 12.5% 0.0% 0.0% 0.0% 0.0% 1 2026-05-06 29 ## CIty of Minnetonka ## Financial Management Plan 2025 2026 2027 2028 2029 2030 2031 ## Actual ## Budget ## Prelim. Budget ## Forecast ## Forecast ## Forecast ## Forecast ## Capital Pro j ## ect Fund Levies ## Capital Replacement Fund 1,725,000 1,725,000 1,092,000 1,389,400 2,511,700 1,571,300 1,539,200 ## Forestry Fund 123,000 125,000 262,000 262,000 262,000 262,000 262,000 ## Public Safety Fund 675,000 675,000 1,483,000 1,410,600 1,713,300 1,953,700 1,985,800 ## Parks & Trails Fund 298,400 283,400 396,700 201,700 381,700 400,000 400,000 ## Street Improvement Fund 6,380,000 5,880,000 5,880,000 6,380,000 6,500,000 7,500,000 8,150,000 ## Technology Dev Fund 675,000 675,000 750,000 900,000 1,000,000 1,300,000 1,500,000 ## Total CPF Levies 9,876,400 9,363,400 9,863,700 10,543,700 12,368,700 12,987,000 13,837,000 -0.1% -5.2% 5.3% 6.9% 17.3% 5.0% 6.5% ## GF Levy (not actual proceeds)Park Bond Debt Svc Levy 289,48 500000. ## Public Safety Bldg - Bond Debt Svc + Constr Levy 1,111,208 1,112,048 1,400,798 1,398,908 1,401,008 1,401,638 1,399,696 ## Recreational Facility Improvements/ Fire St. ($10 million) 694,170 810,000 810,000 810,000 810,000 810,000 ## Fire Station Facility ImprovementsInterfund Loan Repayment (Marsh $6.275M @ 1%) 0000000 ## Abatements & Cancellations 176,000 176,000 176,000 176,000 176,000 176,000 ## Ridgedale Tax Abatement 90,000 95,000 100,000 105,000 110,000 115,000 120,000 Admin primary cycle (base change) (145,000) 145,000 (145,000) 145,000 (145,000) ## Congressional Award 0 ## Axon plus DFR's 300,000 300,000 300,000 300,000 300,000 Reductin of squad build outs moved to Public Safety Fund (80,000) (80,000) (80,000) (80,000) (80,000) Reducing Cable TV transfer in starting in 2027 ($81,700 original transfer) 40,000 81,700 81,700 81,700 81,700 Compensation analysis 0 90,000 90,000 90,000 90,000 90,000 ## Previous Years Public Safety On-going Costs 0 0 935,000 2,023,800 2,293,900 2,293,900 ## HRA Levy 300,000 300,000 225,000 225,000 225,000 225,000 225,000 ## Total Property Tax 54,733,848 59,786,118 62,845,798 66,681,508 71,260,808 74,457,738 77,100,497 Increase from prior year 5,052,270 3,059,680 3,835,710 4,579,300 3,196,930 2,642,759 ## Property Tax Change (Prior to Public Safety Plan) 5.12% 4.97% 5.57% 4.42% 3.85% ## Final Total Levy wo/HRA 54,433,848 59,486,118 62,620,798 66,456,508 71,035,808 74,232,738 76,875,497 ## Fire Standards of Cover Study 0 795,000 1,088,800 270,100 0 0 ## Police Standards of Cover Study 0 140,00 00000 ## Annual Police & Fire Standards of Cover Levy Impact 1,157,000 0 935,000 1,088,800 270,100 0 0 ## Final Total Levy wo/HRA 54,433,848 59,486,118 63,555,798 67,545,308 71,305,908 74,232,738 76,875,497 ## Total Levy w/Police & Fire 7.23% 7.91% 6.84% 6.28% 5.57% 4.10% 3.56% ## Police and Fire Levy Impact 2.25% 2.70% 2.08% 2.19% 0.84% 0.42% 0.40% 2 2026-05-06 30 ## City Council Agenda Item 3.C Meeting of May 11, 2026 Title:June study session topics ## Report from:Sarissa Seracki, Senior Management Coordinator ## Submitted through:Mike Funk, City Manager ## Presenter:Mike Funk, City Manager Action Requested:Affirm upcoming topics. ## Summary Statement This item is informational and is intended to provide the council with the upcoming study session agenda items and study session schedule. ## Strategic Plan Relatability ## N/A ## Background The Minnetonka City Council is scheduled to hold a total of eleven study sessions in 2026. To maximize study session meetings, provide staff direction and focus on council priorities, council members ranked specific topics they expressed interest to review. At the Dec.15, 2025 and Dec. 22, 2025 study sessions the city council reviewed these rankings, discussed priorities and provided direction to staff. At the Jan.12, 2026 regular council meeting the city council approved the 2026 study session work plan. See attached. Staff committed that at each proceeding study session the topics for the upcoming study session will be provided. Section 1.5 of the City Council Rules of Procedure states, individual council members may propose agenda items for future meetings at a study session, and the council may provide direction to the city staff regarding scheduling such matters. In essence, this document can be modified throughout the remainder of the year by a majority of council members. Unless modified by the city council, the 2026 study session work plan agenda items for June 15, 2026 are: ## 2027 Capital Improvement Program (CIP) Purgatory Park off-leash dog review ## Discussion Questions Does the city council have any new topics for consideration? ## ATTACHMENTS: ## 2026 Study Session Work Plan 31 ## CITY OF MINNETONKA The purpose of a study session is to give the city council and city staff the opportunity to study and discuss policy matters in greater detail in a less formal environment than a regular meeting. The council may provide direction to staff but does not take formal action on business matters at study sessions. ## QUARTER 1 ## QUARTER 4 ## QUARTER 3 ## QUARTER 2 ## 2026 Study Session Work Plan ## JAN. 26 • Park board and planning commission interviews • Long-term asset planning ## FEB. 9 • 2026 community survey planning discussion • 2026/2027 trail, street and ## major Capital Improvement Program project review ## MARCH 2 • Policy/Ordinance review: • Council policies • Rearrangement of regular meeting agenda • Substance regulations • Zoning code rewrite update (Short-term rentals) ## APRIL 20 • 2027 director budget presentations ## • Public Safety Master Plan implementation review • 30-minute open time ## MAY 11 • 2027 budget kick-off discussion: • Marsh operations • Rec amenities funding • Priority based budgeting • 2026 community survey results ## JUNE 15 • 2027 Capital Improvement Program (CIP) • Purgatory Park off-leash dog review ## JULY 20 ## • Economic Improvement Plan (EIP): • Housing • Developer refinancing policy • Zoning code rewrite update (Drive thrus) ## AUG. 17 • 2027 general fund budget and levy discussion • Priority based budgeting ## SEPTEMBER No study session scheduled. ## OCT. 12 • Zoning code rewrite update • Comp Plan process preview • 30-minute open time ## NOV. 16 • 2027 general fund, enterprise fund and special revenue fund budgets ## DEC. 14 • 2027 strategic plan action steps • 2027 study session work plan • 2027 legislative priorities • 2027 council and staff appointments ## LOOKING AHEAD • JANUARY 2027: Boards and commissions interviews 32