The Wayzata City Council voted 4-1 Monday to approve the first reading of an ordinance banning short-term rentals and approved a preliminary 7.5% property tax levy increase for 2026.

The short-term rental ban, which would take effect April 1, 2026, prohibits rentals of less than 30 days in all residential areas. Current short-term rental licenses will expire March 31, 2026, with no renewals permitted under the new ordinance.

Several residents spoke in favor of the ban during public comment, citing concerns about neighborhood character and safety. Penny Sherry, who lives next to a short-term rental on Lake Street East, told the council the constant flow of strangers "feels like we live next door to a mini hotel." Other residents described similar experiences with transient neighbors and disrupted community feel.

Scott Trips, who operates a short-term rental, opposed the ban and urged the council to find a compromise solution rather than moving from minimal regulation to complete prohibition. He argued that quality short-term rentals could coexist with residential neighborhoods through proper oversight.

Council Member Sorenson provided extensive analysis supporting the ban, comparing short-term rentals to hotels and citing Pennsylvania Supreme Court findings that temporary tenants "have little interest in public agencies or in the welfare of citizenry." He noted that surrounding communities like Deephaven, Edina, and Shorewood have adopted similar restrictions.

Mayor Mullen cast the lone dissenting vote, citing concerns about property rights and the timeline for existing operators to adjust their business models. The ordinance requires a second reading before final adoption.

The council also approved a preliminary property tax levy of $7,421,212, representing a 7.5% increase over 2025. Finance Manager Zimmerman said the increase would cost the owner of a median-value home approximately $410 annually, assuming a 5% property value increase. The preliminary levy sets the maximum amount that can be certified in December, with the council retaining authority to reduce but not increase the final amount.