Cottonwood Shores’ $4M budget biggest ever; tax rate drops again
The city of Cottonwood Shores adopted its 2025-26 budget and tax rate on Sept. 4, marking the first time the budget has surpassed $4 million and the fourth consecutive year with a property tax rate reduction.
The City Council unanimously approved both items during its regular meeting last week. The new fiscal year starts Oct. 1.
The just-over-$4 million budget, which is an increase from last year’s $3.8 million, includes a 4.6-percent boost to the general fund, from $1.89 million to $1.97 million.
Greenspace spending is a focal point. The city’s 2026 recreational improvements in 2026 include adding public restrooms to city parks.
The budget also has a one-percent increase to the city’s retirement contribution and higher health insurance funding for employees.
Over half of the city’s revenue comes from its utilities fees, at $2.07 million, with the remainder of the budget funded by $1.97 million in property taxes.
TAX RATE
For the fourth year in a row, the city reduced its property tax rate, which is now $0.4998 per $100 valuation. Cottonwood Shores has lowered the rate by about 8 percent over the past four years, with a nearly 6-percent decrease since 2022 when the rate was $0.5315 per $100 property valuation.
“I’m excited that we were able to lower our property tax rate and pray we continue to do so,” Mayor Jared Dodd said. “Our City Administrator J.C. Hughes always does an excellent job with our budget. As we grow as a city, our goal is to increase the goods and services we can provide for our wonderful citizens.”
While the tax rate has been reduced, rising property values in the city mean residents will still see a slight increase to their property tax payments. The city estimates the average value of a home in Cottonwood Shores has gone up about 2.47 percent over last year, from $286,026 to $293,095.