Little Falls adopts 2026 levy and balanced budget after tense public comments on steep tax rises

The Little Falls City Council voted to adopt its 2026 levy and related budget resolutions Monday night, approving a total levy of $6,624,112 and a balanced $10,340,243 budget. Councilors approved the levy after staff outlined capital-improvement needs, debt-service obligations and state-mandated costs that officials said left limited options to lower the increase.

Sony, the staff presenter, opened the public informational hearing and reviewed the budget components, saying the funds "will be received to keep the public safe, keep the public moving, provide inviting outdoor spaces, help us to plan and prepare for the future, and ensure compliance with state and federal laws and regulations." Sony detailed the city’s staffing and service levels, including 14 full-time and four part-time police officers, 40 paid on-call firefighters, and the planned 2026 street projects and park amenities.

Sony said property taxes account for roughly $4,961,512 — about 48% of the budget — and described steps the city has taken to reduce the preliminary levy from an earlier 18.38% figure to about 15.62% in the final proposal. He told councilors the city had increased its capital-improvement plan savings and reclassified some items, but still faces $741,000 of identified CIP increases and other drivers that together resulted in a net levy increase of $958,989.

The presentation included department-level totals: a general-fund operating amount of $4,961,512, debt-service of about $1,500,000, parking fund $30,000, HRA $128,800 and EDA $126,600. Sony said roughly 35% of the budget is allocated to public safety, about 22% to public works and planning, 20% to general government, and roughly 18–24% to capital improvements and transfers.

During the public-comment portion, multiple residents urged the council to reconsider the scale of increases. Lawrence Holy of Edgewood Road said he is considering moving because his taxes "can't keep going up 28% every year." Steve Ogle of Fifth Street NE and Jerry Burmel of Fifth Street SE described "sticker shock" and urged steadier, smaller increases to reduce hardship on retirees and residents on fixed incomes.

Councilors acknowledged the public concerns. Several said they shared residents’ discomfort with the size of the increase but framed the levy decision as constrained by prior underfunding of capital needs, state mandates such as paid family and medical leave, and rising costs for equipment and benefits. The council debated whether cuts could be made without sacrificing critical services; a motion to adopt resolution 2025-54 (the 2026 levy) carried.

The council also adopted related fiscal resolutions: resolution 2025-55 (the HRA levy of $128,800), resolution 2025-56 (the 2026 capital budget and a 2026–2030 capital-improvement plan), resolution 2025-60 (the 2026 fee schedule), and resolution 2025-61 (2026 water, sewer, stormwater, garbage and recycling rates). Council authorized a third year-end check run in December to pay invoices due in 2025 and set formal approval of that check run for Jan. 5, 2026.

The meeting closed after a short period of announcements and discussion about snow-removal operations and parade-route conditions. The levy and budget resolutions take effect per the city’s normal implementation processes; staff said affected dates and next procedural steps are posted in the resolutions and will be included in the Jan. 5 agenda where required.