Committee reviews 2026 capital budget; staff recommends $5.5 million bond for Fire Station No. 1 remodel

City staff presented the proposed 2026 capital equipment and facilities budget to the Brainerd City Personnel and Finance Committee on July 21 and recommended bonding $5.5 million for a Fire Station No. 1 remodel and addition.

Staff said a memo in the meeting packet outlined changes to the capital plan since last year and from the end of the prior year. The largest single change is the Fire Station No. 1 remodel/addition, for which staff recommended issuing bonds to cover an estimated $5.5 million cost. Staff also noted that parks and streets budgets had been reduced by $10,000 each in 2025 and that the 2026 budgets for those departments are currently set at $25,000 each. The capital equipment levy was described in the packet as having been reduced by $100,000 to 1,180,927.

Committee members said they had reviewed materials and would wait for additional budget inputs, including information from the parks department. One member asked whether blueprints were available; another said the plans were posted on the wall and that seeing them helped explain the $5 million-plus estimate. A committee member said a neighbor, named in the transcript as "Mary Co.," had called with questions, and members acknowledged neighborhood interest in the project.

Why it matters: Adding and bonding a major capital project would affect the city’s 2026 levy and long-term debt profile; staff said the next step is to vet estimates and show how the bond would flow into the overall levy.

What’s next: Staff will vet cost estimates for the 2026 capital plan, coordinate with departments (including parks), and return to the committee with more detailed levy and financing information as the budget process continues.