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Brainerd finance director outlines proposed 2026 budget, council schedules final levy decision
Summary
Finance Director Connie Hillman presented the City of Brainerd’s proposed 2026 budget and levy, describing a 4.75% proposed levy increase and plans to use one‑time aid to offset public safety costs; council closed the public hearing and will set the final levy Dec. 15.
Connie Hillman, Brainerd’s finance director, opened a public hearing Dec. 8 to present the city’s proposed 2026 budget and levy, telling the City Council the levy needed for 2026 is about $7.44 million — roughly a 4.75% increase from 2025 — and that the council will adopt a final levy at its Dec. 15 meeting.
Hillman summarized how Minnesota property valuations, sales‑ratio studies and statutory formulas produce tax capacity and then a tax rate. “The purpose of tonight's meeting is to discuss the city of Brainerd’s 2026 budget and levy and to allow for public input,” she told the council. She said estimated market values for the city increased about 1.6% for the 2026 pay year compared with 2025 and that residential property accounts for the largest share of tax capacity (about 61%).
The proposed budget reflects operating expenditures including personnel services of about $9.58 million (an increase Hillman said is primarily due to settled contracts and step increases) and a capital program that totals roughly $6.78 million for 2026 (excluding enterprise funds). Hillman said the council proposes issuing bonds to fund a remodel of Fire Station 1, with bonds discussed near $5.16 million and a rough project estimate of $5.5 million.
Hillman also outlined revenue items: nonproperty revenues are projected to rise (including building permits, grants and an updated payment‑in‑lieu‑of‑taxes calculation for the electric utility set at 3% of gross sales), and staff plan to use a portion of prior one‑time public‑safety aid to fund 33% of 1.5 police positions in 2026 to reduce levy pressure.
Council discussion during the hearing focused heavily on the airport levy and coordination with Crow Wing County. Councilmember Beavens pressed county officials’ responsiveness on reassessing how the county and city split the airport levy and said he had hoped leverage used last year would have produced a clearer county response. “Part of the reason I voted for the $1,000 was not to be mean to the airport, but to try and get some leverage from the county,” Beavens said, adding he had seen only limited follow‑up in the year since the council’s request. Other members said meetings with county representatives had occurred but that no formal county action had been posted.
Hillman told the council that billing the airport for certain shared services (human resources, IT) is planned to start in 2026 and that no such billings were received for 2025. She also fielded questions about the state homestead threshold, noting the state sets that eligibility threshold and the city does not track year‑to‑year counts of homes moving above it.
The public hearing closed at about 6:47 p.m. with no public speakers recorded in the transcript. The council may lower the levy before final adoption on Dec. 15, but state law prevents the final levy from exceeding the preliminary levy set in September.
What’s next: The City Council will consider the final 2026 levy and adopt the general fund budget at its Dec. 15 meeting.
