City Budget

The City's 2026 property tax levy totals $8,246,983, with a General Fund of $7,401,822, a 0.22% increase from the 2025 budget. The City's overall estimated market value increased by 4.63% from 2025 to 2026, including existing value increases and new construction. Based on a property tax capacity increase of 4.7%, the City will increase the estimated payable 2026 City tax rate by 0.827% from 23.087% in 2025 to 23.914% in 2026. 

Property owners with no change in market values from payable 2025 to payable 2026 should experience an approximate 1.0% increase in the City portion of their overall property tax bill which would be estimated at $9 for a $400,000 valued home. In the event of a market value decrease or increase from payable 2025 to payable 2026, City property taxes would change proportionately.

The 2026 budgets and levy were prepared according to the priorities and directions from the City Council. The City Council held several work sessions to discuss the preliminary 2026 General Fund, operating budget and property tax levy. The City Council adopted a 2026 preliminary budget and property tax levy at its September 22 meeting. The City then certified the 2026 property tax levy to Hennepin County in late September. In November, the County sent Truth-in-taxation notices to property owners, showing proposed 2026 property taxes.

2026 Budget Updates

Budget updates were communicated during City Council meetings, email, the City's bimonthly newsletter, and on the City's website.

To receive updates on next year's budget via email, subscribe to the City Budget email list. 

• 12/8/2025: City Council Approved 2026 Budget
• 11/21/2025: Final Review of 2026 Budget
• 11/5/2025: City Budget Update & Truth-in-Taxation
• 9/19/25: Preliminary Budget & Levy, 2026 Master Fee Schedule, and Utility Rates
• 8/27/25: Date Changes to 2026 Budget Preparation
• 8/8/25: 2026 City Budget Work Session #4: General Fund, Levies & Tax Impact
• 7/25/25: 2026 City Budget Work Session #3: Personnel, Fees & Franchise Fees
• 6/20/25: 2026 City Budget Work Session #2: Long-term Financial Planning scheduled for June 23
• 6/5/25: 2026 City Budget Work Session #1: Goal Setting scheduled for June 9
• 5/20/25: 2026 City Budget Process & Calendar

Municipal Water

Water meters are read each quarter and the amount used is rounded to the nearest 1,000 gallons of usage and billed accordingly.

• $32.51 per quarter base fee (where water available)
• $1.75 per 1,000 gallons for first 5,000 gallons
• $5.75 per 1,000 gallons in excess of 5,000 gallons up to 25,000 gallons
• $8.65 per 1,000 gallons in excess of 25,000 gallons up to 50,000 gallons
• $10.35 per 1,000 gallons in excess of 50,000 gallons 

Sanitary Sewer

• $184.93 per quarter (residential)

Recycling

• $19 per quarter per household

Stormwater Management

The residential rate is determined by lot size.

Additional billing rates can be found in the 2026 Master Fee Schedule (PDF).

The City budget is the financial plan for the City’s General Fund for the coming year that provides city services, such as police and fire services, street and park maintenance, planning and zoning, and elections administration, to name a few. Preparation of a City budget is mandated by state statute. 

The budget process begins in the early spring when valuation notices are mailed by Hennepin County to Shorewood property owners. The Hennepin County assessor’s office determines the value of each property in Shorewood.

To address valuation concerns, the City of Shorewood uses the Open Book meeting format, which allows property owners to address questions about their property assessment with Hennepin County assessing staff on a one-on-one basis. Property owners may appeal their value to the County Board of Appeal and Equalization if they are not satisfied after meeting with assessing staff. 

In June and July, City staff begin preparing the following year’s budget. City staff members work with City Council to develop a plan that prioritizes city services and community goals, while maintaining responsible spending. The proposed budget takes into account resident feedback and that which the City Council and staff have received regarding services, public improvements, and community needs. The City Council has final authority for adopting the annual budget and establishing the property tax levy. 

The budget proposal and preliminary tax levy are discussed with the City Council in August and September of each year. By the end of September, the Council must adopt its preliminary tax levy for the following year. At this point, the levy cannot be increased but it may be decreased. In November, Hennepin County mails Truth in Taxation hearing notices to property owners. In early December, the City Council holds the Truth in Taxation hearing to receive comments on the annual budget. The Council then adopts its annual budget and certifies its levy to the County and State. 

It is important to remember the City’s budget only makes up a portion of your property taxes. The County and School districts, along with smaller taxing jurisdictions, such as a watershed district, rely on property taxes as well. 

Valuation Notices are mailed by Hennepin County to Shorewood property owners in early spring.  Options to appeal will be provided on the notices.

In November, Hennepin County mails Truth in Taxation hearing notices to property owners. 

Subscribe to Truth-in-Taxation updates and information from the MN Department of Revenue.

Shorewood residents receive a variety of City services at an affordable price. The cost of City services for the owner of a single-family home in Shorewood with the assessed value of $400,000 is $77.58 per month for 2026. Here is what that $77.58 per month pays for:

Public Safety (Police & Fire) $25.83 per month	General Government $16.95 per month	Public Works & Engineering $11.42 per month
Street/Trail Reconstruction $11.47 per month	Parks & Recreation $9.13 per month	Facilities, Vehicles & Equipment $2.78 per month

Below is a comparison of 2025 monthly property taxes and estimated 2026 monthly property taxes for a $400,000 home in our City versus similarly valued homes in other metro communities of comparable size including fire district cities.