Shorewood has a money problem. They have too much! At what point does prudent saving become hoarding at your expense? Shorewood’s 2025 financial audit was finally completed on September 28th AFTER the city council *voted 3-2 on September 14th for the 2027 tax levy to be sent to Hennepin County. Yes – another 8.31% increase! Here are the highlights that impact taxpayers’ wallets the most. * Sanschagrin and DiGruttolo voted “No” to the 2027 budget.
- Revenues exceeded budget by $551k
- Expenses were under budget by $429k
This means the city, rather we taxpayers – contributed a net positive $980k to the city coffers.
THE CAUSE: During the budget process, city staff routinely under-estimates revenue and overstates expenses for the purpose of adding taxpayer funded savings to the reserves accounts.
THE EFFECT: City Council was misled. When you consistently underestimate revenue and overestimate expenses, you make the City look like it needs more tax money than it actually does. Council then raises taxes—and the excess ends up sitting in the City’s Reserves.
RESERVE BALANCES hit an all-time high of 91%. The city’s Reserve Policy states reserve balances should be kept between 35% – 50% of the city’s annual budget. Money above 50% should be designated to other projects or used to reduce future taxes. That didn’t happen. Instead, the city kept the money and continued raising taxes.
UNRESTRICTED FUNDS are money the City has not committed to a specific purpose. At the end of 2025, Shorewood was sitting on $12.9 million in unrestricted funds while earning a total $570,351 in interest. That’s $12.9 million sitting in the bank with no specific purpose identified. Meanwhile, taxpayers continue to be asked for more.
Click Here For Full Financial Audit Report
Note: In July I requested an accounting of all cash and investment funds from the city finance staff and here is what I received (this is not associated with the audit report).
Investments in Minnesota Municipal Money Market – 4M Funds – (total $13.7M)
Cash Positions (totaling $5.75M below)
$796,126.26 Water Fund (601)
$1,212,236.81 Sanitary Sewer Fund (611)
$224,248.57 Storm Water Management Fund (631)
$2,050,338.33 Street Reconstruction Fund (404)
$336,982.69 MSA Road Reconstruction Fund (405)
$427,399.01 Recycle Fund (621)
$412,245.56 Park Improvement Fund (402)
$135,398.51 Community $ Event Center Fund (201)
($83,930.68) Equipment Replacement Fund (403)
$78,335.53 Community Infrastructure Fund (450)
$214,269.49 Average Daily Cash Balance in Bank
The City isn’t short of cash. It’s hoarding your money while continuing to ask you, the taxpayer for more!!!
