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Downtown Management Board approves 2026 programs budget, asks city manager to seek 2.6% levy increase
Summary
The Petoskey Downtown Management Board approved a $214,721 programs and services budget for 2026 and voted to ask the city manager to recommend a 2.6% levy increase to city council, citing a plan to reduce reliance on fund balance.
The Petoskey Downtown Management Board approved a proposed 2026 programs and services budget of $214,721 and voted to ask the city manager to recommend a 2.6% special-assessment levy increase to Petoskey City Council.
Board staff presented the budget at the meeting, saying the package assumes a 2.6% increase in the current special assessment that would generate an additional $3,175 and use $35,945 from the programs-and-services fund balance. Amy, a staff member overseeing the downtown budgets, told the board that the programs-and-services fund balance is projected to be about $189,000 at the end of 2025.
The board majority supported shifting some line items between funds and reducing reliance on the fund balance. “Both budgets start at the management board and are recommended then to city council who has ultimate approval,” Amy said during her overview. She also summarized revenue composition: 58% from the current-year special assessment, 17% from fund balance and 23% from program revenue such as sponsorships.
Board members asked about fund-balance safeguards and whether vacant properties could be assessed differently. Amy said the special assessment is a principal shopping-district assessment and cannot be adjusted to charge higher rates for vacant properties; she said legal counsel had advised the board that the assessment mechanism cannot impose a higher rate on vacant storefronts.
The board approved the programs-and-services budget by roll call and separately approved a motion requesting that the city manager recommend the 2.6% levy increase to city council. Both motions carried on roll votes called at the meeting.
The budget materials presented examples of levy impact: a ground-floor commercial space of 1,500 square feet would see an annual increase of about $8.04 with the 2.6% levy change as proposed; the staff presentation also showed a scenario in which the assessment would need to rise substantially (to roughly $0.31 per square foot for first-floor space) if the board chose to fund all programs without using program revenue or fund balance.
The board’s action starts the statutory levy process, which requires hearings before city council. Amy said the next step, if the board wishes, is a formal motion forwarding the recommended levy percentage to the city manager for the manager’s recommendation to council.
Votes at a glance: the board approved the 2026 programs and services budget and voted to request that the city manager recommend a 2.6% levy increase to Petoskey City Council. Both measures passed by roll call vote.
