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Brainerd council adopts lower preliminary 2026 levy after debate over double-digit options
Summary
After extended debate and a failed first motion, the Brainerd City Council on Sept. 29 set the 2026 preliminary levy at $7,666,013 and the Brainerd HRA levy at $227,866; the decision followed staff corrections to pension/employer-rate math and discussion of health-insurance and utility-pilot options.
The Brainerd City Council voted Sept. 29 to set the 2026 preliminary levy at $7,666,013, adopting an 8% option the council said better balances fiscal prudence with service needs. The council also set the Brainerd HRA levy at $227,866.
City staff finance presenter Connie told the council that a correction to the employer portion of the police-and-fire pension rate increased projected expenditures by about $24,900 and pushed an initial calculation to $7,879,705 (an 11.01% increase). Connie told the council the final levy set in December cannot be higher than the preliminary levy they adopt tonight and that preliminary levies are used to generate the tax statements mailed to property owners.
The staff packet included four items affecting the levy: proposed changes to health-insurance coverage and premiums (an insurance-committee recommendation to remain with the Better Health Care Collective at an estimated 3% increase), a proposed pilot contribution methodology for the public utility (current budget line $780,000; a 3% of gross receipts approach would yield about $805,000), the EDA levy level, and the debt levy for a planned series 2025A bond issuance. Connie said staff will continue to try to lower the levy ahead of the final December action.
Council members pressed staff for detail on how specific levies appear on the tax bill. "That is what goes in the paper. This is what goes out to people. This is what they see," the mayor said, arguing against presenting a preliminary number above 10 percent. Another member urged caution because preliminary tax statements can give constituents the impression the higher number is final.
The council first voted on a motion to adopt an option near the higher staff calculations; that motion failed on a roll-call vote (six no, one yes). Council members opposing the higher option cited concerns about public perception and asked for a lower preliminary figure.
Council member Johnson then moved to set the levy at $7,666,013 and the HRA levy at $227,866; the motion was seconded and approved by roll call. The council's decision reflects the "8% option" in the staff packet, which several members described as a more conservative preliminary number while staff continues to tighten budget lines before the final levy in December.
The council also discussed the risk that a higher preliminary revenue estimate could make it politically and administratively harder to lower the levy later, and noted that some prior years' budgets left unspent funds that could offset future needs.
What happens next: staff will file the adopted preliminary levy and HRA levy with the county and continue work to reduce the final levy before the council's December meeting; preliminary tax statements will be sent in November based on the number set tonight.
