Computational error drops city tax levy to 4.9 percent
News | Published on December 17, 2024 at 3:29pm EST | Author: frazeevergas
0Frazee City Council continues discussions on ‘flushable’ wipes problem
By Robert Williams
Editor
A computational error will have most Frazee residents thinking they are paying more city taxes than they actually will be. City Administrator Stephanie Poegel explained the error to residents in attendance and the city council at the Truth in Taxation public hearing and council meeting on Wednesday, Dec. 11
“They look really high because I made a mistake in what I gave the council and what was approved,” said Poegel.
The council approved a 9.8 percent increase earlier in the year and that was supposed to be over the final levy that was sent to the county, according to Poegel. Instead, it was 9.8 percent over the preliminary levy from last year that turned it into a 20 percent increase in taxes.
“The final levy is coming in at 4.9 percent and the numbers are over what the final levy last year was,” said Poegel. “The way it’s dispersed out it doesn’t look like it’s 4.9 percent on every line item because of how we get our Local Government Aid (LGA) money so it’s dispersed a little differently. The overall is the 4.9 percent.”
Residents can contact the city office to do a recalculation to find out what the actual amount of their expected city taxes will be.
Poegel also detailed the city’s general fund budget is $2.1 million for 2025 and of that $520,000 is covered by property taxes. The city is collecting $591,0000 from the state and expects to collect $826,000 through garbage fees, fire call fees, services rendered like salting and sanding, copies, TIF funds and other miscellaneous fees.
Councilmember Andrea Froeber discussed the EDA and the city’s efforts to increase housing, especially the new push to sell the lots at Red Willow Heights to bring more people to town and thus, increase the tax base.
Mayor Mike Sharp noted the turnaround of the municipal liquor store under the management of Amanda Young as being another “step in the right direction” and a means of helping to lower the tax burden on residents.
Sharp instructed Poegel to contact the county and verify the latest calculations.
Sewer
Flushable wipes were again a hot topic at the city council. Froeber reiterated a need to begin a campaign to continue informing the public.
“To let the town know what this problem is and what the financial burden it will be to us,” Froeber said. “Larry (Stephenson) has brought it up three times now, this year, and nothing has changed.”
City Engineer Chris Thorson suggested using information provided by the Minnesota Pollution Control Agency, along with noting that Frazee is not the only city dealing with this particular issue.
Froeber volunteered to create a public awareness campaign to share about the need to limit and remove “flushable” wipes from the sewer and sanitary system. Where the city decides to battle this problem at the sanitary pond or in-system, the continued use of the wipes and abuse of the sewer system is going to drive up costs.
Sewer and water costs are already rising around the region. In Pelican Rapids in 2025, sewer and water will cost customers approximately $11 more per month for a residential household to meet current expenses, a 12.8 percent increase, according to a report by Kim Pederson in the Pelican Rapids Press.
A Tris Anderson report in the DL Tribune stated the city is raising water rates by 12 percent and sewer by two percent in the coming year.
North River Road
An owner of one of the homes on North River Drive contacted the city to entertain negotiations on purchasing the property.
“It will make the design and function of the North River Drive and Heartland Trail spur,” said Poegel. “It will be not so crowded and compact and will be much safer.”
The homeowner notified the city of a willingness to accept $30,000 for the property.
The potential purchase was brought to the Economic Development Authority (EDA) earlier in the day and the EDA recommended that the council move forward with the negotiation and potential purchase.
Both councilman Jim Rader and Sharp halted any quick moves on the subject without first knowing how it would be financed through either the city, the EDA or the Frazee Community Development Corporation (FCDC).
“I want to know where to pull the funds from and have our building inspector walk through just to see if there are any hidden expenses when it comes to demolition,” said Sharp.
The home is currently operating as a rental.
Councilman Mark Kemper asked Thorson on the extent of the benefit of the city owning the property and the future work planned for that area.
“It makes it, I’d say, a lot easier and a huge benefit,” said Thorson.
According to Thorson, the way the property sits and the way the school built their stormwater pond the gravel road can be vastly improved by paving and curb and gutter work.
Kemper moved on to economics, namely asking, will spending $30,000 now have a benefit of increased savings in the future.
“Probably not, but it’s going to straighten the roadway up, definitely,” Thorson said.
Wannigan Park
The FCDC donated a pedestrian counter to be placed within Wannigan Regional Park to keep record of the number of individuals utilizing the park.
The FCDC also submitted its Wannigan Regional Park Annual Report to the city.
FCDC remains a nonprofit corporation in good standing with total monetary or in-kind donations received by FCDC in the immediately preceding calendar or fiscal year of $84,136.
The proportion donations expended by FCDC in performance of this agreement – $120,541
Itemization of volunteer services and hours provided under the agreement – 1,247 hours valued at $44,892.
Services included: board meetings, capital campaign, Wannigan Park Committee meetings, City Council / Parks and Rec meetings, Open House coordination and facilitation, troll placement and site placement, Park utility and security coordination, mowing and weed management, grant administration, grand opening coordination and facilitation, park signage, river scouting and assessment, and check-in’s with City Administration.