Little Canada approves 2022 budget with 5% tax increase
The Little Canada City Council unanimously approved a $4.38 million budget for 2022 and a 5% property tax levy increase on December 16, citing the need to cover rising personnel costs while maintaining the city's reputation for fiscal responsibility.
All five council members voted to adopt the 2022 budget and the 2021 tax levy collectible in 2022. The council chose a 5% levy increase—adding $179,080 to the city's tax base—over a proposed 4.5% alternative. The Finance Director explained that the city's 2021 certified levy stood at $3.58 million, and the increase is necessary to address upcoming salary adjustments and maintain city services.
The balanced budget allocates $4.38 million across city operations, with police services consuming the largest share at 41%, followed by parks and community services at 13% and general government at 13%. Property taxes account for 71% of the General Fund's revenue. Notable budget adjustments include a $2-per-hour increase for seasonal staff wages, additional hours for one position, and full-year budgeting for a code enforcement rental housing coordinator role previously deferred to mid-2021.
Council members praised the city's long-term financial planning, noting that Little Canada maintains one of the lowest tax rates in Ramsey County despite annual levy increases. One council member stated the city has "done a good job being moderate in our approach and not spending too much." The City Administrator attributed this success to proactive capital improvement planning, contrasting Little Canada's approach with neighboring cities like Wiper Township and Vadnais Heights, which faced steeper tax increases after deferring street maintenance investments.
The council also unanimously approved a motion to certify the debt levy for the Public Works building at zero. The $183,618.75 scheduled levy is covered by the city's water and sewer fund, preventing the cost from impacting general property taxpayers. No public comments were received during the public hearing on the budget and tax levy.
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Other Topics from This Document
City Financial Management and Infrastructure Investment
Debt Levy Reduction for Public Works Building
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