Council to consider project funding options

The city may seek approval to adopt a local sales tax

Post Date:01/09/2026 3:57 p.m.

The Minnetonka City Council will consider resolutions supporting a local sales tax at its meeting on Monday, Jan. 12. Adoption would authorize city staff to seek legislative approval to allow Minnetonka to pursue a local sales tax. It is the first step in a process that could lead to a referendum at a general election.

The council reviewed various options to fund capital improvement projects at a December study session. The projects include rebuilding two satellite fire stations, completion of high-priority trail segments, renovations and improvements to The Marsh health and wellness center and development of a community park in the Opus area.

Both resolutions propose the use of a 0.5-percent local option sales tax over a period of up to 30 years to fund voter-approved projects. The two alternative resolutions differ only in the scope and cost of improvements proposed for The Marsh.

If the council adopts one of the proposed resolutions, Minnesota law establishes a clear, multi-step statutory process that must be completed before a local sales tax could be imposed. This would include legislative authorization to enact a local sales tax and a voter referendum at a general election within two years of receiving legislative approval.

The resolutions provide a framework for ongoing policy discussion and community engagement regarding how Minnetonka should invest in community facilities and improvements that support public safety, mobility, health, economic activity and quality of life.

Return to full list >>