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.

## 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.

## 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

• 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

THE MINNETONKA RECORDER

Minnetonka seeks $116 million in infrastructure funding

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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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