Petoskey City Council voted to set a public hearing for Oct. 20 to take comments on the Downtown Management Board’s proposed 2026 programs and services funded by a special assessment in the downtown district.

Amy Tweeden, director of the Downtown Management Board, told the council the board is using fund balance to cover expenses while the assessment contribution grows and that the board has reduced expenses and moved some items to the parking fund. "We have cut expenses. We've moved some funding or some expenditures to the parking funds," Tweeden said.

Why it matters: Tweeden told council the downtown fund balance rose after projects were canceled during COVID and that management wants to reach a point where the assessment covers most or all annual expenses. She said the fund balance peaked near $260,000 after COVID but is being drawn down; the current budget shows roughly $107,000 in expenditures with a projected use of about $85,000 from fund balance this year and an anticipated use of about $35,000 next year.

Councilmembers pressed for sustainability. Councilmember Walker asked whether financing and long‑term revenue strategies would be considered; Tweeden said the board is trying to balance services residents and property owners expect, such as events and marketing, with available revenue. Councilmember Shields asked specifically about moving beautification costs (wreaths, lighting and seasonal plantings) into the parking fund; staff said that shift was proposed to reduce pressure on the special assessment.

The council formally adopted the resolution to set the hearing after a motion by Councilmember Shields, seconded by Councilmember Walker. Clerk Sarah Beck recorded a unanimous vote in favor.

Next steps: the public hearing on Oct. 20 will accept public comment on the proposed programs and the special assessment. Staff and the Downtown Management Board will provide the detailed budget and fund‑balance history at that hearing.