Since June, staff and Council have reviewed the various City funds, discussed the proposed property tax levy and tax rate, reviewed tax impacts on properties, and considered an updated fee schedule. The Council adopted the preliminary budget and levy at the September 22nd regular City Council meeting. The 2026 property tax was then certified to Hennepin County on September 25. In November, the County will send truth-in-taxation notices to property owners, showing proposed 2026 property taxes. As part of its regularly scheduled City Council meeting on Monday December 8, the City Council will hold a truth-in-taxation public meeting on the proposed 2026 budget and property tax levy, and adopt the final payable 2026 property tax levy and 2026 budget. The 2026 property tax levy will be certified to Hennepin County on or before December 29.
General Fund
The General Fund budget is proposed at $7,401,822 for 2026. This is an increase of $16,602 over 2025. Public Safety makes up 43.8% of the General Fund budget. General Government includes 28.7% of the budget. Public Works is 19.3% of the General Fund budget. Parks and Recreation is 8.2% of the General Fund budget.
Wages and Benefits at $2,815,550, make up 38% of the General Fund budget. Personnel increases in the General Fund for 2026 total $297,850. Contracted Public Safety is in the Other Services and Charges Use for the General Fund. The Police contract increased $143,897, 8.28%, and the Fire contract has a $142,572, 16.32%, increase.
Overall Property Tax Levies and Impact
The estimated values from the County include a taxable market value of $3,019,484,300, which is a 4.63% increase. The net tax capacity is $34,554,231, adjusted for fiscal disparities. This is an increase of $1,642,433, or a 4.99% increase. With the additions to date (Personnel, Fees, General, Shorewood Community and Event Center, Capital, and Debt Service Funds), the Net Tax Levy would increase by $653,413, or 8.6%. This would equate to a 1.994% increase to the City Tax Rate from 23.088% to 25.082%.
Capital Improvement Plan (CIP)
The CIP is inclusive of all capital, including equipment, vehicles, and other acquisitions, along with planned facility, street, utility, and other municipal infrastructure improvements and is adopted annually by City Council. The CIP provides important details on costs by year and proposed funding sources. Items in the CIP are not mandated, and the Council reviews capital spending throughout the year. The ten year CIP includes $45,917,085 in projects, of which $4,482,300 are reflected in the various 2026 budgets. Details of the CIP, as well as the summaries of project scopes for the more significant projects can be found on the October 14 agenda on the City’s website.
| Source | 2026 |
|---|
Community & Event Center
| $21,500
|
Park Improvements
| $45,000
|
Equipment Replacement Fund
| $321,100
|
Street Reconstruction Fund
| $315,000
|
MSA Road Reconstruction Fund
| $1,072,000
|
Community Infrastructure Fund
| $240,000
|
Water Fund
| $1,139,200
|
| Sanitary Water Fund | $203,000
|
Stormwater Management Fund
| $612,500
|
Outside Funding
| $513,000 |
Grand Total
| $4,482,300
|
For additional details and updates, visit the September 22 City Council Agenda and the budget webpage on the City’s website at shorewoodmn.gov/citybudget. Public comments will be taken during the truth-in-taxation hearing, scheduled during the City Council meeting on Monday, December 8, at 7:00 p.m. at Shorewood City Hall.