Minnetonka previews preliminary 2026 budget; staff propose roughly 7.9% levy increase to fund public safety and seed facility debt

Minnetonka City staff presented a preliminary 2026 budget framework at an Aug. 18 council study session that would require a proposed overall city levy increase of about 7.892% if council adopts the full package under discussion. City Manager Mike Fonick and Finance Director Darren Nelson framed three decision questions for council: whether to support a base levy increase of 7.2% (including 2.6% for the Public Safety Master Plan); whether to add 0.735% for new debt service for facility improvements (community center and Fire Station 2); and whether to certify a $300,000 HRA levy.

Darren Nelson said the operation portion of the levy accounts for roughly 78% of tax levy allocations and that public safety is the single largest portion of general fund operations (about 44% of the general fund). He described key 2026 cost drivers: full‑year funding for nine firefighters hired mid‑2025 (budgeted as about $630,000 for 2026), negotiated market adjustments and cost‑of‑living…