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Councilors debate shifting utility pilot to percentage of gross receipts; staff asked for financial projections
Summary
City staff proposed moving the public utility pilot from a kilowatt‑hour mill-rate to a percentage of gross electric revenue; members discussed ranges used by peer cities (about 4–5% central region average) and asked the public utility director for projections and a phased approach rather than an immediate jump to 5%.
The committee spent the meeting’s final major agenda item discussing the formula and level for the public utility’s annual pilot payment (a payment in lieu of taxes).
City Administrator Nick Broy summarized recent pilots and peer-city practices, saying Brainerd’s recent pilot payments have been “in the high 700s” and that the 2026 budgeted pilot is $780,000. He presented 2024 electric…
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