Screengrab / City of Frazee
Jason Murray of David Drown Associates, Inc., and City Administrator Stephanie Poegel described to the city council how the funds acquisition will be done by combining the projects into one bond between two statutory authorities.

By Robert Williams

Editor

The Frazee City Council unanimously passed a resolution to acquire $500,000 for capital improvements to the East Main project, the Event Center and Liquor Store roofs, along with including the construction of the new beach house at Town Lake Beach.

Jason Murray of David Drown Associates, Inc., described to the council how the funds acquisition will be done by combining the projects into one bond between two statutory authorities.

Prep work is completed and construction of the new beach house at Town Lake Beach is set to begin this week.

The East Main project makes up $302,000 of the half-million with 35 percent special assessed, according to the project engineer.

The use of tax abatement will also be used, where a select number of parcels are chosen and the city portion of taxes from those parcels are pledged, on paper, to the bond holders.

“We know that $205,000 of this project is associated with the liquor store roof improvement and the beach house construction,” said Murray. “We have to average, over the life of 15 years, $13,667 in what we call the abatement, the principal portion of the bond.”

Murray examines property taxes and groups residential properties that equate to the $13,667, in this case 18 different properties. There are no extra expenses for those properties on their annual taxes.

The re-roofing, along with some insulation work, is being completed at the Event Center and the Liquor Store. The City Council passed a resolution to combine the projects with the Town Lake Beach project for bond and tax abatement funding.

“We pledge that on paper,” Murray said. “You’ll spread this levy just like any other levy across all the other properties like you do with all property tax or debt payments in the city.”

Murray said he uses residential properties to avoid a conflict with economic development and residential properties can be grouped for easy administration.

“In this case, I selected parcels along Main Street from the beach area towards town, again, it was just an area that I selected,” Murray said.

A public hearing needs to be held before the bond can be approved.

Murray asked for a formal action to call the public hearing for Wednesday, Oct. 23, during the second council meeting of the month.

“Once that hearing is completed we can technically issue the bonds at that point,” said Murray.

The total borrowing will be $507,000 broken down: 

• Street project $229,881.41

• Liquor store roof/insulation $111,000

• Beach house improvement $75,000

• Contingency $11,494.07

• Legal/Admin $6896.44

• Engineering $23,300

• MRWA Application fee $16,2500

• Capitalized interest $32,976.13

“We will make a note on this that some of this is liquor store and you’ll be able to reduce your levies, we’re pledging tax levies, but you’ll be able to reduce those levies through the use of the liquor store revenues on the liquor store portion,” Murray said. “It’s easier to issue both of these as general obligations. One big bond, one issue. If we’re to separate the liquor store out we’d have to issue that as revenue bonds. We’re trying to do this as cost-effective as we can for you.”

Tax Levy 2025

A proposed tax levy was adopted and submitted to the County Auditor.

According to Mayor Mike Sharp, the finance committee met to set the preliminary levy.

“This is not the final tax levy, of course; it is subject to change,” said Sharp.

The proposed increase was 9.8 percent.

“Over the next few months, the finance committee will be meeting with Steph (Poegel) and everyone to try to get that number down,” said Sharp.

Preliminary levies cannot be raised once set but can be lowered.

“And that is the hope,” Sharp said.

The proposed tax levy is for 2025:

General Government $247,032

Public Safety $246,173

Parks & Recreation $16,981

Streets $85,640

Economic Development Authority $9,899

Total: $605,725

The 2025 Truth-In-Taxation Public Hearing date is scheduled for Wednesday, Dec. 11, at 6:01 p.m. Frazee Event Center.

Fire

1. Membership 22 – Total Firefighters

2. Calls For Service – 

September Fire Calls – 7

3 – Fires

1 – Motor Vehicle Accident

1 – Landing Zone

1 – Co Alarm

1 – Hazmat (Gas Line)

Year to Date – 57 total calls

On Sept. 18, reports of a Life Flight helicopter landing in Frazee were received. The department held Life Flight training with Frazee Rescue, according to Fire Chief Adam Walker.

Rescue

Frazee Rescue President Matthew Johnson reported on a busy month of August for his crew.

Total Calls – 29 (In City – 9 / Outside City – 20 Responded – 23

• Seven days had multiple calls.

Other noteworthy happenings at the department:

• Process has begun to transfer paper documents to electronic files.

• Process has begun to purge the rescue garage of obsolete/expired equipment/supplies.

• Training has resumed with Lakes Country Emergency Education & Consulting, which takes place every 2 months (excluding summer months).

• EMS in our immediate and surrounding areas are running short staffed, sometimes intentionally.

• We have, and expect, to continue to require mutual aid from outside our area as Essentia does not always have units available to respond.

• Although this does not affect our response, it does require us to prepare for extended times before patient care is transferred.

Police

Chief of Police Tyler Trieglaff reported on four code violations of property by quantity and status: Four properties were noted for Grass and Weeds. All properties mowed and looking better.

Provide code violations of vehicles by quantity and status:  Zero vehicle violations.

Report of any vehicle accidents in Frazee:  1 motor vehicle crash in town.

Report landlord violations and status:  Zero landlord violations.

The department continues its search for a replacement squad car.

The department is working with Arvig to install cameras at the new beach house to extend video surveillance in town.

Public Works

Public Works Supervisor Larry Stephenson and his crew prepped Town Lake Beach for the upcoming beach house construction.

The department, which is back to being fully staffed, will begin water main, sewer main and hydrant flushing this month. 

East Main

City Engineer Chris Thorson reported the alley project behind the Fire Hall is nearing curb and gutter work. On the other side of town, the contractor is working on final grading, putting down the aggregate base for the road bed with curb and gutter to follow this week.

Asphalt and paving work is scheduled for around October 7.

“A busy timeline coming up these next few weeks,” said Thorson. “We’ll see a lot of improvements up there, surface-wise.”