Central to the meeting was the approval of the preliminary 2026 tax levy, set at $7,838,365. This figure represents the maximum amount the city can certify to the county, though adjustments can be made to decrease it before final adoption in December. The levy discussion, led by Finance Director Brian Grim, detailed how the gross levy amount would factor into the city’s budget, emphasizing that the fiscal disparities program would adjust the net levy for residents to approximately $7.688 million. Grim clarified key concepts such as the difference between net and gross levies and the impact of property tax rates and tax capacity.

Council members explored the implications of the levy on residents, noting rising taxes due to shifts in commercial and residential property valuations. Grim explained that declines in commercial property values had increased the residential tax burden. This led to a broader dialogue on regional tax variations, emphasizing that Minnetrista’s tax rate remains relatively low, yet the actual tax burden varies based on local property valuations.

The council also discussed potential revenue streams, including collaboration with nearby municipalities to perform inspections amid a slowdown in housing construction. Concerns were raised about reduced building license revenues and the city’s capacity to adjust variable costs given the fixed nature of many expenses, such as salaries for building inspectors. Grim acknowledged these challenges and highlighted ongoing efforts to manage revenue shortfalls collaboratively.

In parallel, discussions about the water treatment plant funding took precedence, with the council considering applications to the Public Facilities Authority (PFA) for financing, which offers favorable interest rates. The projected interest rate for bonded debt to fund the plant was approximately 4.5%, while the PFA offered around 3.5%. These rates were compared to historical rates, highlighting the financial implications for the city. The council acknowledged that federal mandates, such as environmental reviews, could delay project timelines and increase costs, referencing a recent incident in Northfield where a similar project exceeded its budget by 20%.

The meeting also addressed ADA compliance in city buildings, with concerns about public accessibility. It was noted that certain facilities lacked ADA-compliant features, such as automatic door openers. While a needs assessment was slated for around 2030, some members advocated for earlier action, proposing that improvements be made incrementally.

The resignation of Michael Kirkwood, a representative from the Lake Minnetanka Conservation District, was an unexpected topic of discussion. Council members, including Peter Vickery, acknowledged Kirkwood’s contributions to balancing ecological and recreational needs, as well as his impactful work on the planning commission. The council expressed gratitude for his service.

Further discussions addressed potential refinancing options for city bonds, with the council exploring the feasibility of paying off existing debt sooner. A resolution was proposed to approve a preliminary budget.

Additionally, the council set December 8th as the date for public comments on the 2026 levy budget. The council also discussed maintaining the September 3rd meeting schedule for public hearings on upcoming projects, despite earlier considerations for cancellation.

In lighter news, the council noted the opening of Everly Farms, a new restaurant in town, expressing enthusiasm for its offerings. The meeting concluded with a motion to adjourn.