The Personnel and Finance Committee, chaired by Gabe Johnson, began the meeting with the authorization to sell a retired Community Service Officer F-150 pickup truck. The vehicle, which had approximately 40,000 miles, was valued between $17,000 to $19,000 according to Kelly Blue Book. The motion to authorize the sale was made, seconded, and carried unanimously. This decision follows the replacement of the vehicle with a leased one from Enterprise Fleet Management.

A significant portion of the meeting focused on budgetary and financial matters. The committee discussed adopting a resolution to execute a traffic safety enforcement grant for the 2024-2025 fiscal year. Police Chief John Davis explained that the Brainerd Police Department would act as the fiscal host for this grant, which is important for ongoing traffic safety initiatives. The grant amount for the current year is $57,600, covering administrative costs, equipment purchases, and tuition reimbursements for certification programs. The motion to authorize Chief Davis to execute the grant passed without opposition.

The council also reviewed a proposed fee schedule update. The updated version included engineering fees not previously reflected. Changes proposed included increasing certain building permit fees, such as residential inspection fees rising to $50 per inspection, and adjusting food truck fees from $300 to $50 to align with other municipalities. The fire department requested an annual inspection fee of $75 for food trucks based on their inspection experiences. Additionally, the council discussed increasing the planned unit development (PUD) fee due to substantial staff work involved in processing these applications. The proposed fee schedule also included a recommendation for a $1,000 escrow fee for city property appraisal services. The committee decided to direct staff to prepare an ordinance for the next meeting to codify these changes.

Health insurance renewal for 2025 was another key topic. The city faced a higher utilization rate that could have led to a 20% increase without the benefits of being part of The Better Health Collective. The transition from Health Partners to Blue Cross Blue Shield in 2025 necessitates adjustments in the open enrollment timeframe. A motion to approve the health insurance renewal was moved, seconded, and approved without debate.

The Brainerd Housing and Redevelopment Authority (HRA) tax levy was discussed extensively. The HRA is seeking a total of approximately $28,995, representing a modest increase compared to the previous year. This funding will support local housing initiatives and maintain property values and housing stock. The council was informed that the HRA’s funding would support additional units in specific developments, emphasizing the positive impact on local tax values. There were inquiries about how the HRA funding integrates with broader county initiatives and whether the city should notify neighboring municipalities about fee updates to ensure consistency across jurisdictions.

The meeting also covered the 2025 preliminary Park Board budget, proposing nearly a 9% increase over the previous year. This increase is largely attributed to personnel services, including costs associated with full-time staff and the addition of part-time seasonal employees. The Park Board’s budget reflected challenges in staffing, especially in retaining seasonal workers. Recommendations were made to raise seasonal wages to between $18 and $20 per hour to remain competitive in the labor market. Some council members found the nearly 9% city levy increase unacceptable, leading to debates on whether the proposed two additional seasonal employees were essential to maintain current service levels or if the budget could be reduced.

Union negotiations’ impacts on future budgetary constraints were acknowledged, raising concerns about the sustainability of increased expenditures. Suggestions were made to direct staff to reevaluate the budget to find potential savings without sacrificing essential services. The possibility of transferring funds from a long-term capital maintenance fund to alleviate immediate operating budget pressures was discussed, although this was considered a short-term solution.

Further discussions centered around the capital budget, noting that while some capital requests were decreasing, personnel costs remained a driving factor behind the overall increase. The council emphasized the need for a review of the operational budget to ensure that the proposed increases were justified. It was concluded that the Park Board would revisit these discussions and potentially adjust their proposals based on council feedback. A subsequent meeting was scheduled to further address these budgetary concerns and to clarify the relationship between operating costs and revenue adjustments.