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Brainerd council directs staff to pursue 3%→5% electric pilot, asks legal review with utility commission
Summary
The Brainerd City Council voted to direct staff to pursue an electric‑utility pilot of 3% of revenues in 2026, rising to 4% in 2027 and 5% in 2028, and to work with legal staff and the Public Utility Commission to determine the formal process. The action is advisory — staff must confirm authority and return with implementation steps.
Brainerd council members on Sept. 15 directed city staff to pursue a phased increase to the electric utility pilot — 3% of revenues in 2026, 4% in 2027 and 5% in 2028 — and to work with the city’s legal team and the Public Utility Commission on the formal process.
"So this vote is more just directing staff of what the council would like to see," said Gabe Johnson, chair of the Personnel and Finance Committee, after moving the measure. "I don't know if we have the authority to just set it. I know that charter refers to a public utility commission resolution that sets it. So we may need the commission to actually take action to change the pilot, but this is just the council affirming this is what we would like to see."
Johnson said the motion is guidance, not an immediate regulatory change; the council approved the direction by voice vote. Council members discussed two paths: asking the Public Utility Commission to adopt the change or pursuing local action if legal review shows the council has authority under the city charter.
Council members asked staff to investigate legal steps, and Johnson offered a friendly amendment to direct staff also to bring the request to the Public Utility Commission as a council recommendation. "I'd make a friendly amendment to my motion if I could to also direct staff to bring this item to the Public Utility Commission," Johnson said; the amendment was accepted.
Finance staff estimated that, depending on assumptions, the pilot change could affect the levy by roughly $50,000–$53,000. Staff told the council they will return with a legal assessment of authority, any required steps at the commission level, and a budgetary estimate for inclusion in the preliminary levy process.
Next steps: staff will consult the city attorney and the Public Utility Commission, then report back with the formal process, estimated fiscal impact and any ordinance or resolution required to implement a pilot change.
