The Wayzata City Council approved its 2026 preliminary budget with a 7.5% levy increase and granted a controversial shoreline setback variance during its September 23 meeting.

The council unanimously approved the $25.4 million preliminary budget, which includes $9.9 million for the general fund. The budget supports the previously approved 7.5% property tax levy increase, with Police Department expenses comprising the largest portion at $3.9 million, followed by administration and general government at $2.2 million.

In a 3-2 vote, the council approved a shoreline setback variance for 547 Harrington Road, allowing construction 108 feet from the shoreline instead of the required 260.5 feet. The decision followed extensive debate about potential view impacts on neighboring properties, with Council Members McDonald and Pleish voting against the measure. The variance includes conditions requiring a shoreline impact plan and restricting building in certain areas to preserve sight lines.

The council also appointed Dan Cook to fill the vacant seat left by outgoing Council Member Jeff Parkhill, whose term expires December 31, 2026. Cook was selected from five applicants following interviews conducted earlier in the evening.

Additionally, the council approved an ordinance prohibiting short-term rentals in the city, effective March 2026, though some members indicated they may revisit portions of the ban in the future.