Wayzata board approves preliminary 2025 payable 2026 levy at state maximum; sets preliminary amount at $100.9 million

Wayzata Public Schools finance officials presented a preliminary levy certification for payable 2026 and the Wayzata Public Schools Board of Education voted 6–0 (one member absent) to approve the levy limitation and certification at the maximum amount permitted by state law.

Trevor Peterson, executive director of finance and operations for Wayzata Public Schools, told the board the preliminary levy for payable 2026 is $100,885,586.29, an overall increase of 4.74% from the payable 2025 total. Peterson said that the levy covers three funds the district levies: the general fund (about $78.6 million), the community service fund (an increase tied to school‑age care and other programs), and the debt service fund (whose increase reflects recent bond sales for a West Middle School construction project). He described the board's options: approve the preliminary levy at the statutory maximum or approve a specific dollar amount; he recommended approving the maximum to preserve flexibility before the district adopts a final levy in December.

Peterson outlined why numbers change between preliminary and final levies: state formulas set by the Minnesota Department of Education (MDE) and “prior year adjustments” that reconcile actual enrollment and expenditures with prior estimates. He said the district’s long‑term facilities maintenance (LTFM) and lease levies have shown notable prior‑year adjustments in recent cycles (including large negative adjustments during the COVID years) and warned MDE calculations could still change before December.

A CFAC committee member who spoke during the discussion thanked the finance team and said the presentation, including CFAC participation, helped community members understand how the levy would affect taxpayers. Board members asked questions about precedent for approving less than a maximum in preliminary certification and about how changes from MDE would be handled; Peterson said it is possible for the state to revise maximum levy amounts and that the district would respond and communicate any changes before the final levy vote.

The board approved the preliminary 2025 payable 2026 levy limitation and certification at the maximum amount allowed by state law in a roll call vote: Heidi Kader, Valentina Ayers, Dan Genestra, Paras Bende, Sheila Pryor and Board Chair Milan Sahoney voted yes; Sarah Johansson was absent. The board set the district on the path to submit the preliminary levy data to Hennepin County, which will use the information to prepare proposed property tax statements for property owners and to forward the county’s timelines ahead of the district’s December truth‑in‑taxation public hearing and final levy adoption.

Peterson summarized the timeline: districts submit levy data into the MDE LEHI (levy information) system in August; MDE calculates preliminary levies in September; counties mail preliminary property tax statements; districts hold the truth‑in‑taxation hearing and adopt final levies in December. Peterson emphasized that the “payable 2026” levy funds property tax collections in calendar year 2026 and that most levy categories are driven by per‑pupil formulas administered by MDE.

Background details Peterson provided include: the levy is divided across voter‑approved levies (operating referenda, bond/technology levies) and other local levies (local optional equity, transition revenue, LTFM); the district’s referendum market value accounts for about 45.5% of the tax base; and classified property types (residential homestead, commercial/industrial, apartments) have different net tax capacity rates that affect how levy changes translate to individual tax bills. Peterson gave an illustrative example that a residential homestead with a market value of about $500,000 would see an estimated tax‑bill increase of about 1.9% under the district’s assumptions, noting assumptions include unchanged individual property market value and that net tax capacity growth spreads the levy across more parcels.

The board’s approval authorizes staff to submit the preliminary levy numbers (at the state‑allowed maximum) to the county; it does not obligate the board to adopt the maximum final levy in December. If MDE or district data change before final certification, the district can present a revised levy at the December meeting.

The board concluded the special regular meeting after the vote; the next regular meeting was announced for Oct. 13.