March 22, 2024 at 11:05 a.m.
TF Council, Hursh have agreement; city account defrauded
A closed session between Taylors Falls city council and a cybersecurity firm was held Monday night this week.
The private meeting between the I-T Guys and city council members may have been scheduled quite a while ago, but the timing of this with news of fraud involving city accounts, was eerily coincidental. The sensitive nature of discussion about the city’s Internet security assessment was cited as the reason to hold a closed meeting presentation. The council did not review anything in open session, that may have required a vote.
Two council members, Tim Grote and Lee Samuelson, were absent.
The fraudulent activity on the city accounts showed up as charges and cash withdrawal in the list of claims that the council is required to sign-off on. Well over $30,000 in debits to places like “Scottsdale Silver’ and other companies brokering metals and bouillon were detailed, along with a Western Union transaction, a $4,450 cash check and various payments to specialized (non prime) credit processors.
City Treasurer Michelle Hansen told the Press in a conversation following the council session, the activity took place from late January into February. It took a while to file an official dispute through MidWestOne Bank and steps were taken for revising account numbers, etc.
To track them, the fraud expenses were entered as their own entry items and only just showed up in documents for the meeting claims this week. Hansen added that the bank has been terrific to work with. She is confident the city can be made whole.
Mayor Brandon Weiberg commended the treasurer for jumping on the questionable expenses as fast as she did. Staff working with the bank blocked access to all accounts .
A bank-led investigation is underway, the mayor assured those attending the council session.
Hursh deal is a go
Council then voted 3-0 in favor of several actions to pave the way for Hursh Ironworks, Hursh Erectors and Hursh Holdings to build a facility on 8.6 acres in the city business park. The site is west of downtown, near the wastewater treatment pond and Xcel substation.
Council met earlier this month and opened the public hearing to get public input on the assistance policy for this package, and there was no public comment. Basically this project is happening because Taylors Falls has a $1 price tag on the lots.
Much of what is contained in the city assistance application was kept private, because details could place the company at a “competitive disadvantage’ as the mayor put it. The applicant answers questions about past company finances, industry specific details about operations and the like. Council agreed the company’s proposal will generate sufficient new property tax, develop employment opportunities and improve the business park. They voted 3-0 that the plan does comply with city standards and rules and approved allowing Hursh to acquire the lots for $1 each. The county has them assessed at approximately $100,000 in total but as city-owned land they were not contributing any property tax.
Hursh proposes to have the new facility occupied and completed by August 2026.
The company manufactures and fabricates everything from beams to stair railings and components of steel frame building structure.
The facility will be 40 feet tall, have metal siding with stone product embellishments and be fenced and landscaped. Estimated annual total tax for the city, school, county, etc. from the county assessor’s staff was $27,500, on a $900,000 structure valuation.
In public comment, longtime city booster Barb Young handed in her town bulletin board keys. The city now has responsibility for the message content and upkeep. She reminded the council that even though industrial sites need to be part of the area— tourism is the city’s main livelihood and the city needs to set its sights on working together to maintain an “inviting” town for visitors.
Council also agreed to put out a (RFP) Request for Proposal for a water and sewer rate study. The RFPs will give an idea of what the study would cost. The rate study is utilized as justification for rates charged for systems that support themselves, better known as “Enterprise Funds.”
Council member Troy Aanonsen questioned a bill submitted by the fire department for a $4,000 piece of equipment that can detect body heat and pinpoint a victim/firefighter’s location in a fire situation.
Council determined the chief needs to be questioned as the cost exceeded the $1,000 purchase limit max that city departments are restricted by.
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