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Brainerd council approves HRA's preliminary 2026 levy request after debate over staff work and past levies
Summary
The council approved the Brainerd HRA's preliminary 2026 levy request for the statutory maximum of $227,866 (a $53,906, 31% increase), following discussion about fund balances, payroll allocations, and whether HRA staff had devoted time to county projects in prior years.
The Brainerd City Council voted Sept. 15 to approve the Brainerd Housing and Redevelopment Authority’s preliminary 2026 levy request at the statutory maximum of $227,866, a $53,906 (31%) increase over the previous year’s levy.
Connie Hillman, the HRA finance director, told the council the HRA’s unassigned fund balance as of Dec. 31, 2024, was $455,171 (about eight months of operations) and that the maximum levy allowed by state statute is 0.0185% of the prior year’s estimated market value. "For 2026, this amount is $227,866, and this is the amount that the HRA board is requesting," Hillman said, noting the increase reflected the HRA’s prior decision to hold levies flat in recent years.
Council discussion ranged from operational detail to governance. Yeager, the council’s HRA liaison, argued the full levy is needed to retain staff and carry out special projects, saying the HRA relies on steady funding to avoid future spikes. By contrast, former liaison Gabe Johnson raised concerns that in earlier years Brainerd HRA staff spent much of their time on work for Crow Wing County and other outside partners and said he has reservations about resuming the full levy; he noted he had previously voted no in similar cases.
Johnson said, "When I was liaison, our administrative staff was spending a majority of their time on Crow Wing County initiatives... I just don't think Brainerd HRA staff should be doing majority of their time on county initiatives." Despite concerns, Johnson acknowledged he would support the motion this evening because he was no longer the liaison.
Karen Young, HRA finance director (presenting earlier in the packet), confirmed the HRA’s estimated total payroll for 2026 will be over $1.7 million and explained that the levy request before council is the HRA general fund portion; other program wages are allocated to federal and state program budgets.
The council approved the preliminary levy request by voice vote and will include it in the preliminary levy packet; the HRA’s preliminary levy must be set by Sept. 30 and the final levy cannot exceed the preliminary amount.
