The Cost and Financing
The City of Minnetonka is dedicated to pursuing long-term, fiscally responsible investments that protect public safety, enhance quality of life and expand recreation opportunities for residents.
The full cost of the Minnetonka Together investment plan is estimated at $116.1 million, including:
Reconstructing Fire Station 2 on the existing site ($13 million)
Rebuilding Fire Station 3 on new land ($17.6 million)
Expanding trail connections ($34 million)
Renovations and expansions at The Marsh ($35 million)
Construction of a park and community space residents at Opus ($16.5 million)
To fund these projects without raising local property taxes, the city is pursuing a half-cent local sales tax. That process includes legislative approval, followed by a local vote where Minnetonka residents would have the final say.
Our goal is to invest responsibly.
The city’s approach will balance quality and affordability, ensuring that improvements meet community needs while responsibly managing tax dollars and protecting the city’s financial health.
Why a local sales tax?
Nonresidents would pay 52% of the sales tax, according to the University of Minnesota. This means approximately $60.4 million of the $116.1 million collected through the sales tax would be paid by visitors who often use the City’s parks and trails, public amenities, and public services.
The local sales tax would not be permanent. The sales tax would expire after 30 years or when enough funds have been collected to cover the approved projects’ cost, whichever comes first.
Exemptions for essential goods. Local sales taxes include a wide range of exemptions for essential goods, including groceries, clothing, prescription drugs, and baby products.
If approved, the half-cent sales tax would cost the average resident about $3.99 per month, or $47.83 per year.
If the city raised property taxes for this investment, Minnetonka homeowners would pay $15 per month, or $180 per year, for an average value home of $521,300.
