Mill Street Mire: Will You Pay for the Water Main?

Bids for the Mill Street water main are scheduled for review and approval at the April 13 council meeting – open to the public.

Mill Street trail construction has started as part of a larger Hennepin County job. Shorewood owns a segment of the trail. As is now common with recent Shorewood projects, discussion turns to installing a water main as part of the construction. In this case, the council agreed it made sense to install the pipe.

But, the real question remains: Who pays and when?

This question is relevant when we acknowledge the elephant in the room which is a 20+ year Water Improvement ordinance (City Code § 903.181) that says, in part:

“…If the City Council determines to order an improvement, a feasibility report shall be undertaken and a public hearing scheduled. Benefitting properties shall be assessed pursuant to M.S. § 429.”

A year ago, the city council faced a difficult choice with a short timeline—whether to install the water main and, if so, how to divide the cost. Two months later, the council agreed to go ahead, proposing a $10,000 connection charge per household. To be clear, the $10,000 connection charge is separate from the assessed cost of water main installation covered under the ordinance. Unclear was whether that fee would be collected when a homeowner connects in the future, or immediately charged to all 25 properties that benefit when the main is installed.

Flash forward to December when the council approved the plans, and authorized the project to go out for bids. But, did that vote actually approve the project—or was final approval dependent on the bid results? Above all, when would the requirements of the existing ordinance (i.e. the law) be enacted? There has been no more discussion on the topic since December. If you’re confused, you’re not alone.

In summer 2025, Finance Director Schmuck contradicted past policy saying that Shorewood has no assessment policy. Andrew Budde, Bolton & Menk confirmed no policy has existed since at least 2019. This is incorrect. The assessment policy for water improvements is clearly spelled out in § 903.181. Wedgewood Drive residents can testify to this since residents of every house were assessed immediately when the pipe was installed in 2005.

There has not been discussion of changing or rescinding the ordinance. Council members DiGruttolo and Sanschagrin have voted against motions on the Mill Street project, citing the city’s noncompliance with the ordinance. In 2024, the city attorney and administrator acknowledged they had never “seen” such an ordinance and would “look into it.” Both have been silent about the ordinance since then. Administrator Nevinski has admitted the city’s assessment policies have been inconsistent over time.

The Wedgewood Drive project in 2005 was assessed correctly per the existing ordinance. The projects in the last several years were not assessed, which violated the existing code, creating a deficit in the water fund.

This large deficit in turn, has led to council conversations about building out the water system to increase revenue and make the fund solvent. In addition, tortured rationales are now being used to charge various fees to all homeowners, not just municipal water customers.

One last sticking point: The proposed Resolution to proceed (for approval on Apr. 13), does not confirm who pays. It gives the go-ahead without a clear cut fiscal policy. Is this a lack of leadership or political courage, or just a convenient oversight?

The city continues to be mired in indecision as it dances around the “unheard of” ordinance.

Bottom line: Per the existing city ordinance (law), (§ 903.181), the Council is within its authority to order the water main extension on Mill Street. What they cannot do is ignore the clear language in that same law defining how that improvement is to be paid. If the Council does not like the law, they can change it. The procedure to do that is also written into the code. To date, this has not been done.

Everyone, even elected officials, is required to follow the existing ordinance (law). Otherwise, those laws lose any meaning.

Residents deserve a clear explanation and a consistent policy before the bill arrives.

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Additional reading:
Mill Street Trail Water Main Project (video 00:39:21 and 2:25:21)
June 9 Staff Memo Explaining the Mill Street water main Project
Drilling Down on Shorewood’s Municipal Water
Wedgewood Drive Resident Tells Assessment Story-Rick Stromberg
Minnesota, Chapter 429 assessment policy