A significant portion of the meeting focused on the approval of a memorandum of agreement with the IUOE Local 49 Street Division Union. This agreement was pivotal as it established the new 2024 wage grid. The motion passed unanimously.

In a related discussion, the council also addressed a tentative agreement with the Law Enforcement Labor Services Union regarding the police officer contract for 2025-2027. This agreement included wage increases in line with those negotiated for other unions. The motion for approval passed without further discussion.

The council then turned its attention to budgetary concerns, particularly the implications of various levy increases. Discussions revealed a strong desire to balance the need for increased funding against the potential burden on taxpayers. One of the proposals considered was a levy increase ranging from 3.75% to 4%, with the aim of addressing fund balance compliance and restoring capital levy increases. The council acknowledged the need for such adjustments to ensure the city’s financial stability.

The meeting also included an in-depth dialogue on the airport’s funding, which had been a contentious issue. The council noted that while the county had authorized a levy increase, the city had reduced its own levy to prevent double taxation on residents. A collaborative approach with the county board on airport ownership and funding was suggested for 2025, with council members emphasizing the importance of transparency and cooperation.

Discussions about the city’s personnel services increase, projected at 6%, also took center stage. This increase, amounting to $513,000, was part of the broader budget deliberations. The council recognized that previous adjustments in debt service had provided some financial relief, but the need for careful management of personnel costs remained a priority.

In terms of immediate financial adjustments, the council explored the possibility of setting the final levy at a 3% increase. This strategy was seen as a balanced approach, allowing for necessary funding without over-relying on the fund balance. It was agreed that a 3% increase would provide approximately $140,000 for the airport, while also bolstering the city’s financial reserves. The consensus to recommend this increase to the full council demonstrated a unified approach to addressing fiscal challenges.

Another topic was the allocation of funds from the American Rescue Plan Act (ARPA). The city had received approximately $1.4 million, with a portion already allocated to various projects. However, with $168,000 still remaining, the council faced decisions on how best to utilize these funds before the deadline. Discussions included the possibility of redirecting funds towards the police budget for personnel expenses, as well as considering amendments to previous allocations.

The council also tackled the topic of the Main Street Grant, with concerns raised about the demolition of structures in downtown Brainerd without clear plans for replacement. This aspect of the project was tied to the ARPA funds, which needed to be spent by the end of the year. The need for a coherent plan before proceeding with demolition was emphasized, to avoid leaving the area in disrepair.

Finally, the meeting included an update on the city’s work comp renewal, which resulted in a $135,000 savings for the operating budget. This positive outcome was attributed to a lower than expected experience mod, thanks to the efforts of the city’s Wellness Committee. The savings provided some budgetary relief, contributing to the broader discussions on managing the city’s financial resources effectively.