12% City Tax Increase?

Are you prepared to take another tax increase? After a 29.4% tax and services increase over the last 4 years, city finance director Jeanne Schmuck presented city council with a proposed 12% tax increase for 2027. This follows a $400+ increase in water & sewer service fees – making the financial strain especially difficult for residents, many who are retirees. Link: Utility Bills Soar!

How is this possible with inflation rates of 2.95% in 2024 and 2.7% in 2025? Even the city’s own Long-Term Financial Management Plan recommends a 7.6% tax increase for 2027. Less than a year later the staff wants more? What type of game is being played here?

Staff highlights from April 27th the city council work session:

• 5% compensation adjustment is ”locked in” per Schmuck;
• Building upgrades to Police, Fire, Public Works and SCEC;
• Eliminate public dialogue work sessions in 2027 (Does this mean no more work sessions?);
• South Shore Senior Partners may halt services in 2027;
• Reserve policy accepted by the city council last year (this means 60% reserves on a $9.2M tax levy = $5.52M of your tax dollars sitting in city hands and not yours!).

Here’s the breakdown:

Improvements:

• Replace Freeman Park north playground
• Replace single axle dump truck
• Manor Rd 150ft road & utility replacement in collaboration with Deephaven
• Mill & overlay – unknown roads at this time
• Heating replacement at Public works facility

Council member highlights:

• Gorham and Maddy both pushed back on the 12% increase stating core inflation is running about 3% – and questioned the other 9% as well as staff increases of 5%.
• Council members pointed out there are no new services being added for residents.
• No staff engineering position has been considered in the 2027 budget.
• Maddy does not want architects involvement in any building designs until funded and feels we would be giving them an open checkbook.
• In the mayor’s opinion, Buckthorn removal is too much work for Public Works employees and would like staff to re-think how buckthorn is eliminated and reduce cost.
• Park improvements budget appears to be too low.
• The mayor seemed to agree with the police budget by further stating a squad car needs to be added along with one new officer.
• Staff to research potential savings if all building improvements be done at once

Shorewood has a retiree population of 30% or about 2,200 people. These mostly long-term residents helped build this city to what it is today. Don’t let insane tax increases force people to move because they can no longer afford to live in the city they helped build and love!