By Robert Williams

Editor

Managing Partner Colleen Hoffman of Hoffman, Philipp, & Martell, PLLC, gave the City of Frazee and its city council high marks for budgeting while reporting on the city’s annual audit of 2024, Wednesday, Sept. 10.

“I’m very happy and thrilled with the things that have been happening in the city office,” Hoffman said. “I am delighted with Amanda when you look at the liquor store financials. I’m just telling you it’s going good over there. All the department heads are doing good.”

Liquor Store Manager Amanda Young began her duties on Nov. 1, 2023.

The audit opinion stated the City of Frazee met all standards and were in compliance with all government accounting standards.

Being in compliance gives Frazee an A+ rating which helps when issuing bonds, like better interest rates, according to Hoffman. 

Another highlight was the performance of Frazee’s enterprise funds (Event Center, Liquor, Sewer, Water, Storm Water).

“They’re all doing well,” Hoffman said. “In our sewer and water funds around the state, we’re not seeing cities being able to make enough money to pay their bills. The fact that your operating income is positive in all of your funds. You’re making enough money to cover your depreciation and you’re making enough to cover your bonds too, which is great. It’s really good.”

Of the five enterprise funds, only the Event Center is operating at a loss ($28,799), but that number was tempered by the liquor store funds.

“The liquor store made $90,000 after paying their debt,” said Hoffman. “That’s unheard of and wonderful, especially, coming from where we have been with the history of the liquor store. Work a little on the Event Center and see how we can better make that one work as far as what we’re charging and the transferring of the inventory between the liquor and the Event Center. The allocation of wages and things we can look at to make the Event Center look a little better, or not. It is what it is.”

Mayor Mike Sharp asked Hoffman if she sees any cities with event centers of a similar size that make a profit.

“Nope,” she said. “But don’t feel bad it’s losing this tiny bit of money because it’s a nice amenity for your town to have.”

“We hope to break even,” Sharp said. “That’s what we’re hoping for.”

Council member Mark Kemper also spoke positively on the Event Center’s funds, especially given the roof and other repairs that were completed last year..

“I know we lost money at the Event Center, but I think this year we are half of what we lost last year,” he said. “We’re gaining. Myself, I don’t feel like we’re ever going to be profitable at the Event Center.”

Considering the number of paying days at the center per annum, Kempler used the following analogy, “If you work 52 days a year and that’s your income can you make it?”

“That’s not a terrible loss; I’d like to see it a little less, but I can live with this,” Kemper said.

Next, Hoffman spoke about Frazee’s general fund that has a surplus of $10,948.

“You can’t budget any closer than that,” she said. “That’s amazing that you could do your budget and hold that line and keep it to that amount. Congratulations. It’s usually way too high or way too low because the budgeting isn’t thought out that carefully.”

The city also has a potential windfall of $128,763 from tax incremental financing (TIF) on the former Swift Plant site cleanup. Proof of the costs from the cleanup, which are expected to be more than that amount, need to be found and submitted to the State Auditor to get access to the funds, which will then be transferred to the city’s general fund.

City Administrator Stephanie Poegel stated she has located the files from the project and they are on the table to be examined for the necessary information.

The city receives $7,322 annually and will continue to do so until the TIF district is closed.

Downtown Mural

Frazee Area Community Club Tom Watson and Retail Manager and Project Specialist at Creating Community Consulting Shelly Blauert introduced a concept for the mural that will be painted by Minneapolis Muralist Lili Lennox and installed downtown later this year.

A year ago, the Community Club began a $100 club that raised enough money to cover the funds for the project thanks to 100 donors.

Blauert has taken over leadership of the mural project. Images and information were sent to Lennox and along with revisions and Lennox’s own research a final concept for the mural has been agreed upon. 

The council approved moving forward, and according to Blauert, hopes are to have the installation in place for an event this fall or done by the end of the year.

The painting will not be directly on the cement wall, but painted on panels that will be installed upon the wall so that it could be completed even if it’s winter.

A photo of the mural concept was shared with city council members and it will be shared with members of the $100 club, but it will remain a surprise to the public.

Rescue

The council approved a bid by Bemidji Sports Centre of $10,319 for a 2025 Honda TRX520FA6 all-terrain vehicle to replace an aging model currently in use by the Frazee Rescue Department.

The purchase was approved by the finance committee before meeting full council approval.

Rescue Department Chief Matt Johnson suggested donating the old ATV to be utilized by the Frazee-Vergas High School’s shop.

“The unit we have right now was a hand-me-down; it’s super tired and it’s got issues…there are lots of things they can fix,” he said

If the school declines, the ATV will likely be put up for auction.

Wannigan Park 

Representing the Minnesota Deer Hunter’s Association, Greg Olson runs an AppleTree program and approached the council with an officer of 20 mature apple trees for Wannigan Regional Park.

Olson made the offer and was looking for an answer, but he was referred to the Wannigan Park Tree Committee, which will make the decision.

Talks have also been held with students about having a tree to mark each graduating class.

“I will provide the trees; that’s why I’m here,” said Olson.