Waconia City Council Regular Meeting - December 22, 2025

The Waconia City Council held its regular meeting on December 22, 2025, at 6:00 PM. The council conducted public hearings on proposed franchise fees and the annual fee schedule, approved the 2026 final budget and tax levy of $13,914,617, and failed a motion to increase mayoral and council salaries. A law enforcement update was provided, and the council reviewed the city administrator's performance evaluation.

Public Hearings

• Franchise Fees: Finance Director Nicole Meyer presented a proposal to implement a $5 per utility per month franchise fee on residential properties to fund pavement management and playground replacement. Stated benefits over a property tax increase included an estimated $25 annual savings for the average home ($120 franchise fee vs. $145 property tax increase) and immediate revenue from new construction. Public testimony was strongly opposed. Bernie Benz argued the fee functions as a tax, questioned transparency, and requested the matter be placed on a ballot. Dave Swanson expressed frustration over past unmet street maintenance promises. Steve Yetzer called the fee a tax and stated cumulative city fees are taxing residents out of their homes. No formal action was taken; final consideration is scheduled for January 20, 2026.
• 2025 Fee Schedule Ordinance Amendment: Nicole Meyer presented the annual update to the city's fee schedule, which includes changes to membership fees, water/sewer utility rates, and equipment rates. No public or council comments were made. The hearing was closed, and the ordinance was later approved.

Public Comments & Testimony (Open Forum)

• Bernie Benz spoke again in opposition to franchise fees, questioning the cost of the consultant study by Ehlers and raising concerns about a projected 2% annual increase referenced in the study. He reiterated his position that the charge is a tax and should be decided by voters.
• Dave Swanson questioned the city's past budget planning for street maintenance and identified 22 locations in his neighborhood where settled curbs are causing standing water. City Administrator Shane Fineran responded that the neighborhood is a candidate for reclamation, a process paid for through property taxes, and noted that street assessments only apply to full reconstruction projects.

Consent Calendar

The council approved 26 consent agenda items in a single motion, removing item 8 (Right-of-Way Ordinance) and item 19 (Financial Policy Amendment) for separate discussion. Approved items included: approval of prior minutes and current expenditures; expenditures for Safari Island Community Center and the Ice Arena; change orders for Water Treatment Plant 3; resolutions for street lighting and 2026 capital projects; appointment of a utility maintenance worker; donation acceptance for the Waconia Fire Relief Association; sale of surplus equipment; investment portfolio diversification for unspent bond proceeds; grant applications for source water protection and contamination cleanup; 2026 law enforcement and joint assessment contracts; lighting retrofit and asset management agreements; equipment replacement; property purchase agreement for 401 13th Street East; authorization for a Small Area Plan for 801 Highway 284; a steep slope permit; park board appointments; and license renewals for tobacco, liquor, waste haulers, and recyclers.

Council Business

• Mayor and City Council Salaries: Assistant City Administrator Jackie Schulze proposed increasing the Mayor's salary from $7,200 to $10,000 and Council salaries from $6,000 to $8,000, effective January 1, 2027, to remain competitive with peer cities. The motion failed by a vote of 2-3. Ayes: Mayor Tim Litfin and Council Member Jeff Grengs. Nays: Council Members Derek Siddons, Nick Gleason, and Jacob Coleman.
• Final Tax Levy (2026): The council adopted Resolution 2025-307 for a final tax levy of $13,914,617. Finance Director Meyer noted the city's tax rate will decrease from 48.173% to approximately 47.97%. The average home value is $450,300, a 4.6% increase. The motion carried.
• Adopt 2026 Final Budget: The council adopted Resolution 2025-308 for the 2026 budget. Mayor Litfin highlighted projects including Phase 4 downtown reconstruction, a new dog park, a trail connection between Sterling Hills and Waconia Parkway North, and intersection improvements at Oak and Sparrow Road. The motion carried.

Items Removed from Consent Agenda

• Right-of-Way Ordinance (Chapter 320): City Administrator Fineran explained the ordinance strengthens regulations, definitions, and fees for private utilities using the public right-of-way. The council unanimously adopted Ordinance No. 786 and the resolution for summary publication.
• Financial Policy and Guidelines Amendment: Nicole Meyer stated the primary update sets a target 41% unassigned general fund balance for 2026, up from 40%, with a future goal of 43% by December 2028, to enhance financial strength as outlined in the strategic plan. Council Member Coleman expressed opposition to the 43% goal, stating it would take too much money from taxpayers. The motion carried.

Board & Staff Reports

• Law Enforcement Update: Sgt. Jon Howard reported on his 11-week training at the Northwestern School of Police Staff and Command. He noted the Carver County Sheriff's Office added a traffic safety officer, developed a drone program (with drones stationed in Waconia for specific incidents, not general surveillance), and acquired new marine and snowmobile equipment. In 2024, Waconia had 6,584 calls for service; from January 1 to December 17, 2025, there were 6,547 calls. Waconia accounts for approximately 20% of all Carver County Sheriff's Office calls for service.
• Mayor's Report:
  • City Administrator Evaluation: The council met in closed session on December 8, 2025, to evaluate Shane Fineran. The council scored him an average of 4.4 out of 5 across all categories (Management Team scored 4.6), indicating an "element of strength." Areas for 2026 include legislative advocacy, communication, and strategic plan implementation.
  • Highway Safety: MnDOT will submit the dangerous intersection of CSAH 5 and CSAH 92 for a Regional HSIP grant for potential construction in 2030-2031.
  • Community Events: The Mayor announced the "Spring into Health" initiative and noted the next "Mayor is In" session will be held on January 7, 2026, at 7:30 AM at City Hall.

Key Outcomes

• Salary Increase for Council and Mayor: Motion Denied (Vote: 2-3).
• Final Tax Levy (2026): Approved ($13,914,617).
• Final Budget (2026): Approved.
• Right-of-Way Ordinance: Adopted.
• Financial Policy Amendment: Adopted (Unassigned fund balance target set at 41% for 2026).
• Consent Agenda: Approved (26 items).
• City Administrator Evaluation: Composite score of 4.4/5 from Council, 4.6/5 from Management Team.
• Franchise Fees: Public hearing held. No action taken. Final consideration scheduled for January 20, 2026.