Wayzata approves 2025 budget with 7.75% tax increase
The Wayzata City Council approved its 2025 budget and property tax levy on Dec. 17, with a 7.75% increase over 2024 to fund public safety expansion and technology investments. Mayor Joanna dissented on both votes, while four council members supported the roughly $24 million budget.
The council voted 4-1 to adopt the final 2025 property tax levy and budget, with the increase driven primarily by investments in police recruitment and retention, additional public safety staff, and information technology upgrades. The 7.75% levy increase represents a reduction from the preliminary proposal and reflects the city's strong financial position, according to council members. The budget allocates 39% to police operations, 23% to administration, and the remainder to other city services. Revenue comes from charges for services (43%) and property taxes (30%).
Council Member Alex Implesic raised concerns about how the city is maximizing its Tax Increment Financing (TIF) funds—special revenue sources tied to development districts. He requested that the council dedicate time in 2025 to understand TIF districts five and six and explore whether those funds could support other projects like improvements at Clapp Bridge Park. The Deputy City Manager agreed to include a detailed TIF workshop in the 2025-2026 budget process, noting that these districts are performing better than anticipated.
In other business, the council unanimously approved a cooperative agreement to purchase self-contained breathing apparatus (SCBA) equipment for the fire department. Staff explained that the city had applied for grants for three to four years without success, making immediate replacement necessary this year.
The council also advanced a cannabis business regulation ordinance on first reading, voting 4-1 to adopt stricter buffer requirements. The ordinance requires cannabis retailers to maintain distance from schools, parks, and The Retreat, a residential treatment facility. The council chose to measure all buffers from property lines rather than building edges—a more conservative approach that staff said may limit available locations for cannabis businesses.
In a unanimous vote, the council approved a winter sauna lease at Wayzata Beach. Nordic Experience will operate a mobile sauna with lake cold plunges from January through May, aiming to activate the park during winter months and generate revenue. The council addressed logistics including bathrooms, changing areas, security, and coordination with other winter events.
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Votes (6)
Consent Agenda - Discussion on Capital Improvement Plan and TIF Funds
Moved by Alex Implesic [31:40] · Seconded by Ken Tonson [31:47]
Council Member Pish expressed a desire for the council to dedicate more time in the new year to understand TIF five and TIF six funds, specifically how they are being maximized and if they could benefit other programs like improvements at Clapp Bridge Park. The Deputy City Manager confirmed that TIF districts are more successful than anticipated and committed to incorporating a specific workshop dedicated to their current status into the 2025-2026 budget process.
Consent Agenda - Discussion on SCBA Cooperative Agreement
Moved by Alex Implesic [31:40] · Seconded by Ken Tonson [31:47]
A council member inquired about the possibility of seeking grants or reimbursements for the self-contained breathing apparatus (SCBA) for the fire department. The Deputy City Manager explained that the city had applied for grants for the past three or four years without success and that the SCBAs need to be replaced this year, so waiting for another grant cycle was not feasible.
Adoption of Resolution 57-2024 Certifying the Final Property Tax Levy for Taxes Payable 2025
Dissent: Mayor Joanna [1:42:29] voted against the motion.
Moved by Alex Implesic [1:41:38] · Seconded by Molly McDonald [1:41:47]
Deputy City Manager Jagger presented the final property tax levy, noting a 7.75% increase over 2024, which is a reduction from the preliminary levy. Key drivers for the increase include investments in IT, employee compensation (including recruitment and retention incentives for police officers), and adding public safety employees. Council members supported the levy, emphasizing the city's strong financial position, commitment to public safety, and need to invest in a growing community to maintain high service quality.
Adoption of Resolution 58-2024 Approving the Final 2025 Budget
Dissent: Mayor Joanna [1:44:27] voted against the motion.
Moved by Alex Implesic [1:44:20] · Seconded by Molly McDonald [1:44:20]
Following the discussion on the property tax levy, the Council proceeded to approve the final 2025 budget. The Deputy City Manager had previously outlined the consolidated budget of approximately $24 million, its revenue sources (43% charges for services, 30% property taxes), and expenditure allocations (39% police, 23% administration, etc.). The budget was balanced and aligned with goals to invest in public safety, implement strategic initiatives, and minimize resident impact. There was no additional discussion beyond what was covered during the levy presentation.
Consider Approval of the First Reading of Ordinance 845 to Regulate Cannabis Businesses
Dissent: Mayor Joanna [1:24:28] voted against the motion.
Moved by Alex Implesic [1:24:08] · Seconded by Molly McDonald [1:24:16]
The first reading of an ordinance to regulate cannabis businesses focused on buffer distances, especially concerning The Retreat (a treatment facility). Staff presented maps showing buffers measured from either building edges or property lines. The Retreat had submitted a letter expressing strong concerns about a cannabis store in Colonial Square. Council members debated the extent of buffers and the inclusion of bus stops. The consensus emerged to adopt a more conservative approach by measuring all buffers, including for The Retreat, from property lines, acknowledging the state's discretion but aiming for caution given the newness of the issue and the sensitivity around the treatment facility.
Consider Approval of Lease Agreement with the Nordic Experience for a Sauna at Wayzata Beach
Moved by Alex Implesic [1:49:14] · Seconded by Molly McDonald [1:49:14]
Parks and Environment Planner Keefer presented a proposal from Nordic Experience for a mobile sauna at Wayzata Beach during the winter (Jan 1 - May 1). The sauna would allow for cold plunges in the lake and operate daily with staffed sessions. The Parks and Trails Board unanimously recommended approval, citing activation of winter parks and potential revenue. Council discussion focused on logistics such as portable bathrooms, secure changing areas, security during off-hours, coordinating with the Chili Open, and ensuring public safety and liability coverage, all of which the business owners and staff addressed satisfactorily.
Notable Quotes (16)
Capital Improvement plan... we're approving it tonight it's a living document... I do think that um maybe in the New Year we spend some time going through and really understanding the Tiff five and the Tiff six so that we know and we're maximizing those resources out of that those tiffs to be able to use them to the places that um you know might benefit other things like you know the the sidewalk and the parking lot at at clap Bridge Park...
we work with our Consultants on a tiff cash flow every year um that ultimately updates the amount of increment that's generated and it compares it with the obligations that the each of the districts have so it changes but ultimately they're do they are more successful than we thought they were going to be... we talked uh internally today... about incorporating that that process into this year's budget or 20 2026 in 2025 the budget process and doing that um on an annual basis into the future.
SCBA Cooperative agreement uh will there be some applications for grants that go out is that the an item that typically will get either through the state or other mechanisms reimbursement for monies on protective equipment PPE for fire
yeah so we've actually applied for that Grant the last three or four years and have not been successful and unfortunately um the scbas need to be replaced this year so we won't be able to wait another Grant cycle um but that has been the plan and we've been actively applying for that I think three or four years in a row.
why did the levy increase this year what's driving that increase um the first is investments in it and Technology... second was to invest in employee compensation... and newly was to include a recruitment and retention incentive for our police officers... and the last driver was adding some Public Safety employees...
some people might look at our budget growth and say that you know it's tracking higher than inflation has but uh what people fail to recognize that we are a robust growing community and uh we care about things like Public Safety and so the money that we're investing is truly to make the the community the community the people want if we were just to raise uh taxes by uh inflation rates we would actually diminish the city I believe so I just want people to know that that we looked long and hard at these numbers and and they make sense.
I think it's good to point out that our city is in a very strong financial position and and that's not by accident a AAA Bond rating is not normal for a city our size uh and our practice of funding ahead for projects is a little unusual also allows us not to bond and spend money on on on interest... it allows us to uh retain I think the best talent around and um and uh also just to to point out um our budget does not include general fund money for future phases of panway...
the retreat did submit a comment letter expressing concern about a cannabis retail business located in Colonial Square... a cannabis store right next door uh would lead to an increase in Temptation and a risk of relapse...
the statute doesn't set a percentage doesn't set a number um so this is really I think we need to on staff's expertise about what what's a good case that we could make uh with with the buffers and the zoning changes that if you are a cannabis business you have a license from the state um you have options of locating in y Zetta...
I really hate the fact that we even have to be dealing with this I think that was a a very misguided State legislation but here we are... if there's one spot in a city we would want to maximize the buffer that would be it... The Retreat letter to me is something that is Meaningful... so I see no reason why we shouldn't expand the buffer to be the maximum that it is for this particular situation...
the letter from John Curtis was very impactful to me it's someone that I respect very much so and I've been a donor to The Retreat for the last decade... I'm looking at this as this is a Baseline and let's just move along as people get more comfortable so with that said I would vote in favor of the buffer from the property line at the rich treat...
I do believe that the the guests at The Retreat do leave the property and you know frequent luns and that kind of thing so um yeah that letter from John Curtis I found to be um very respectful and just a way to you know give us his perspective and that of the the residents... but I think the pr the Practical reality is whether there's a cannabis store directly adjacent to the Big Woods or if there's one across the street um it's still there and there are people that go there for treatment... I think what is proposed here is too aggressive...
there's probably two uh priorities note in there that would fit this diversify Revenue... sustained Community character and safety... this is a low impact um addition to the to the beach area especially during the winter months when there's not much activity...
we have a a wellness Retreat Center there where we host weddings and U many different types of events private events that um so we have a lot of experience working with people bookings and things like that... we would have um portable bathrooms down there and then we're looking at an aspect of having this uh a changing area attached to the sonel that we're building right now...
I've talked with Nick about it in one of the main points that was my concern I just wanted to make sure we were good on was the liability piece because this is a potentially a high impact activity for individuals and um you know I think the agreement as it's written in then our conversations with the applicant or potential Lee here too is that you know they'll be fully insured the city will be fully indemed ified and there will be as part of the sign up and registering process uh liability waivers for participants.
I love the idea so I'm I'm going to vote for it but having just spent a week in Finland in June I can tell you this is a big deal there and the ratio of saunas to people is like two people to a sauna... And the whole experience is in it you know we're a Nordic State basically we got a Nordic Heritage here so only kind of makes sense to me and you know Finland is has been ranked I think for years upon years as the happiest place on Earth the people there that might have something to do with their SAS...
Ordinances & Resolutions (9)
City ordinance concerning crime-free drug-free training relating to rental dwelling licenses, reviewed in a workshop.
Long-term plan for capital expenditures, subject of discussion regarding TIF funding.
Amending city code sections 506, 507, 603, and 604 for food, pool, and lodging regulations.
Approving a joint and cooperative agreement for purchasing self-contained breathing apparatus (SCBA) for the fire department.
Amending the 2025 Fee schedule for special event and demolition permits.
Certifying to the county auditor the final property tax levy for taxes payable 2025.
Approving the final 2025 budget.
Amending part five Municipal licenses and part nine zoning ordinance to regulate cannabis businesses, specifically concerning buffer zones.
Agreement for a sauna at Wayzata Beach.
Source document
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Other Topics from This Document
APWA Minnesota Project of the Year Award
Capital Improvement Plan (CIP) and TIF Funds
Self-Contained Breathing Apparatus (SCBA) Purchasing Agreement
2025 Property Tax Levy and Budget Approval
Cannabis Businesses Regulation Ordinance
Wayzata Beach Sauna Lease Agreement
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