Bemidji Council Approves Citywide Pay Increase, Earmarks $200,000
The Bemidji City Council approves an average two percent pay increase for all city employees during its December 3 meeting, to take effect in the 2026 payroll. The raise follows a Baker Tilly wage study and is intended to address job misclassifications and compression, a change that will affect city services and the municipal budget for local taxpayers.
The Bemidji City Council voted Monday to approve an across the board pay increase averaging two percent for city employees, a change scheduled to be implemented in the 2026 payroll. City officials say the adjustment follows a comprehensive wage study by Baker Tilly that compared Bemidji job classifications and salaries with peer municipalities and identified misclassifications and compression at higher steps.
City Manager Rich Spiczka described the study as showing a need to correct classification and step issues so the city can retain current staff and recruit qualified candidates in a competitive labor market. Financial Director Donna Coe reported the total wage increase is estimated at about $200,000 and that the cost has been built into the projected 2026 budget. Council members indicated the move is aimed at stabilizing municipal services by reducing turnover and improving pay equity across departments.
On the same night the council conducted three public hearings, including a Truth in Taxation presentation for the proposed 2026 levy and budget. Officials said public comment and budget deliberations will continue as the council prepares to finalize the levy and budget later in December. Voters and taxpayers should expect the final levy decision to determine the local tax impact of wage adjustments and other budget priorities.
Council members also gave first readings to two ordinance amendments concerning hemp business registration and associated fees. The amendments will return for further consideration before final adoption, allowing additional public input and legal review as necessary.
For Bemidji residents the immediate significance is twofold. City employees will see a modest pay increase in the coming year, which may improve continuity in services such as public works, police, and parks. At the same time taxpayers will follow the December budget and levy actions to understand how the estimated $200,000 in wage costs and other budget items will affect property tax levels and municipal services. The council is expected to conclude budget work and adopt final levy figures later this month.
