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.
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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Ordinances & Resolutions (8)
Legislation sought for Fire Station 2 and infrastructure improvements.
Special legislation sought in 2026 to fund $116 million in infrastructure improvements.
A legislative priority to exempt construction from sales tax.
A legislative priority seeking flexibility in Tax Increment Financing for affordable housing.
General legislative support for policies promoting affordable housing.
A $5 million initiative for the preservation of existing affordable housing units.
A legislative priority to expand authority over fiber and utility companies.
Expansion of a Payment In Lieu Of Taxes program specifically for cameras to monitor speeding.
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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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