Council members hope to lower preliminary tax levy of 16 percent

By Robert Williams

Editor

Over the summer, the Frazee City Council discussed being more consistent in utility billing city-wide, specifically with water and sewer. Recently, there were approximately 20 residents who were mailed a letter by the city explaining the proposed enforcement of city ordinance regarding every building that has a working curb stop that has lines and water to a structure will be charged base rates for water, sewer, storm sewer and a user fee.

Connections are also factored into rates tabulations for municipal bonds that are issued, including the water treatment plant.

Dale Fett, who owns a warehouse property on Walnut Avenue appeared before the council on Wednesday, Sept. 24, to dispute the charges that totaled $600 per year for his property.

“Nothing in this letter pertains to me so I don’t see how you can charge me for something I don’t use,” Fett said. “You want to be business-friendly and yet, you tax a small business and he doesn’t even use it. It doesn’t make no sense to me.”

Fett stated the water is turned off at his warehouse and he has covered the drains with steel covers and duct tape. 

“I have no sewer; I have no water and they want $600 a year for sewer and water and I don’t even use it,” said Fett. “I don’t see how that’s business-friendly. I don’t even see how it’s fair.”

City Administrator Stephanie Poegel explained that the charges are part of city ordinance and engaged Council member Andrea Froeber in the discussion. That turned into a short back-and-forth with Fett.

“The direction was that we wanted to be consistent,” said Froeber.

“I think consistent is fine but there has to be some exceptions,” Fett said. “When you don’t use it; it doesn’t make any sense to me I guess. So, you’re saying if I dig a hole and cut the water line I’m not connected to you no more.”

“Correct,” said Poegel. 

“Okay, so it would be beneficial to me to get an excavator down there tomorrow and dig a hole and cut it off and have Larry (Public Works Supervisor Larry Stephenson) look at it?,” said Fett.

“You would have to work with Larry on capping that off—making sure that it’s all done correctly,” Poegel said.

“Seems like a lot of work for nothing when it’s turned off,” Fett said.

“It’s the same as if somebody were to go south in the winter and they turn off their services, but they still need to be paying because there is maintenance involved,” Poegel said.

Fett described how he purchased the building and Otter Tail Power ran electricity up to the building and he did not have to pay anything until he requested the power be connected and he was metered.

“It would seem to me that you guys would follow the same basic rules that almost everybody else would,” he said.

“There is a difference with Otter Tail being a for-profit business and us being a municipal-owned utility—so that is part of the difference and it is commonplace in almost every city,” Poegel said.

“Not in Detroit Lakes!” Fett parried. “I’d be classified as a vacant building. I checked up there already.”

The discussion lulled until Fett threatened to disconnect the connection on his property.

“If you’re going to make me dig a hole, I’ll dig a hole,” he said. “I don’t care at this point, but I think it’s very poor for the City of Frazee to just squash the little guy. That’s how I see it.”

Vice Mayor Jim Rader was facilitating the meeting in the absence of Mayor Mike Sharp and responded to Fett’s claim that squashing the little guy is not the city’s intention.

“I would never think you would have that as an intention, but that’s how it comes across,” said Fett.

He continued and summed up with, “I’m not going to pay $600 for something I don’t use.”

Rader prompted a potential motion from the council, but seeing none diverted to continuing the conversation when Sharp was back with the council.

“To be honest with you Dale, I’d feel better about discussing an item like this, and I’m just speaking to the council and the audience here, when we do have the mayor here,” said Rader.

“There are so many other ramifications,” Froeber said. “Part of the reason we are doing this is to have that consistent ordinance so that it is fair across the board and I understand what you’re saying. It’s not something that we can make a quick decision tonight.”

Fett’s bill was due to be paid by Oct. 1, but he was granted an extension while a decision on his property is in limbo. He was forthright in his response.

“I’m not going to pay,” he said. “I’m going to dig a hole and I’m going to be just P.O.ed or I think I should be exempt.”

“This is going to take a more in-depth conversation,” Froeber said.

“You guys have your conversation and let me know,” said Fett.

“Let us know,” said Tom Watson.

Watson joined Fett in response to the charges, but elected to not speak minimally in public about his situation. Watson’s property is side-by-side with Fett’s and the two will likely disconnect by digging at the same time if the parties do not come to some other agreement.

Electing to dig and disconnect the connection is the responsibility of the property owner, according to Poegel. It must be done with Stephenson’s approval of the work being done appropriately.

Froeber continued the conversation stating, “the intent is not to be unfriendly toward businesses, but we have other issues that are residential in the community.”

She brought up the fact that everyone in town was charged for the construction of the water treatment plant.

“That calculation was figured by how many lines we had in the city,” she said. “At the time, had we not included lines like yours then the fee may have been higher for the people that had one.”

“So you’re going to get nothing either way when we cut the line,” said Watson.

“I know, Tom,” Froeber said.

“And I think that the number of people like me and Tom are very, very tiny, probably one-tenth of one percent,” said Fett. “That would be nothing in the scope of how many water lines you’ve got. That would be a tiny, tiny, tiny percentage.”

According to Rader, the issue will be addressed at the next council meeting.

Admin

Froeber highlighted a portion of Poegel’s administration report that showed there were 57 campsite registrations in Frazee over the past month.

Community Development

The council approved a new position in administration. The Community Development position is responsible for leading initiatives that foster community and economic growth while supporting the retention and expansion of business vitality in the City of Frazee. This role also includes applying for new grants and managing awarded grant funds. Additional responsibilities involve overseeing committees, communication plans, and all aspects related to the development of Wannigan Park including construction planning, permitting, timelines, and coordination of work to ensure the successful creation of the park.

The position is being created to replace a combined project manager position at the park with Frazee Community Development Corporation (FCDC) and the economic development consultant position currently held by Creating Community Consulting’s Rachael Johnson.

Johnson’s contract expires at the end of the year. The new position would be split between the EDA and FCDC and funded 50 percent by FCDC and the city’s annual EDA contribution.

The council approved the job description and posting the position.

Eagle Lake

New City Attorney Patrick A. Bakken described finishing the Eagle Lake Park sale a “work in progress.” 

The next step is filing the case in court and publicly publishing for three weeks, then another 20 days for any responses, and then a likely default judgement.

“That’s hopefully the plan,” Bakken said.

Fire

A probationary firefighter was dismissed for a lack of performance and hours not being met. The department currently has 23 active firefighters and two probationaries.

Insurance

The city has a request for proposals for a city insurance agent. Hopes are to get a new agent in place before the upcoming renewal of the city’s policies in February. The insurance agent would be signing on for a three-year commitment.

Meeting dates

Changes were approved for upcoming council meetings the weeks of the Thanksgiving and Christmas holidays The second council meeting in November will be moved from Wednesday, Nov. 26 to Monday, Nov. 24 December’s second meeting will be moved from Wednesday, Dec. 24 to Monday, Dec. 22.

Pickleball

Council member Mark Kemper suggested the city make a donation to the fundraiser to bring pickleball courts to Frazee, calling the project a “win-win for everybody.”

“We don’t have to do the legwork; they’ve already done that,” he said. “Second of all, we cannot put them up but we can invest. I think we need to get on board and get them some money.”

Hailee Olson and Madison Olson are spearheading a capital campaign and teaming up with the Frazee-Vergas School District and Frazee Area Community Club to bring pickleball courts and a shared parking lot with the new junior varsity baseball field off of County Highway 29. Estimated costs of the full project are $282,000.

Public Works

Stephenson’s report stated the department has completed approximately 75 percent of sewer main flushing completed.

Crushed material was applied to West Walnut Avenue. 

“We’ll need to do some more blading and compaction to be completed, we are holding off on water main flushing for a while until we are using less water,” he said.

Public Works is continuing an ongoing search to locate leaks in the city’s water system.

Tax Levy

After discussions of the finance committee on Tuesday, Sept. 23, a proposed 16 percent preliminary tax levy has been proposed with hopes to chisel it down, according to Rader. Preliminary levies are typically higher than the final number as the committee can lower it but not raise it after being set.

The proposed tax levy for the upcoming year, collectible in 2026 upon the taxable property in the City of Frazee:

General Government $56,081

Public Safety $242,161

Parks & Recreation $15,443

Streets $153,859

EDA ($75,829)

Bond 2012A $23,791

Bond 2014A $23,126

Bond 2016A $4,605

Bond 2017A $9,325

Bond 2022B $36,522

Bond 2024D $27,168

Bond 2025A $87,541

Total proposed levy $603,793

The 2026 Truth-In-Taxation Public Hearing date is December 10, 2025 at 6:01 p.m. at the Frazee Event Center.