Petoskey City Council on Dec. 2 adopted the city2025 annual budget and related fee schedule and approved four additional formal measures, including a neighborhood enterprise zone and a three-month option to purchase a historic house at 106 East Mitchell Street.

The councilapproved the 2025 budget and fee schedule in a 4-0 roll call after a public hearing and discussion that included adding $40,000 for a city dog park pilot and $5,000 for the Youth Advisory Committee. City Manager Shane Horn and councilmembers discussed a parks fee spreadsheet and budget detail during deliberations.

Why it matters: the budget sets the city2025 spending plan and earmarks modest city funds for parks and youth engagement the council chose to include. The decisions commit city funds and set direction for near-term projects.

Key actions taken

- Budget and fees: Councilmember Wagner moved to adopt the 2025 budget and fee schedule, including $40,000 toward a dog park pilot and $5,000 for the Youth Advisory Committee. Councilmember Shields seconded. City Clerk Beck called roll; Wagner, Shields, Walker and Mayor Murphy voted yes. Outcome: approved, 4-0.

- Neighborhood Enterprise Zone (NEZ): Council adopted a resolution establishing a NEZ covering most of Ward 4 and part of Ward 3, enabling property owners who make qualifying rehabilitation investments to seek tax abatement under state rules and submit certificates to the State Tax Commission. The council voted 4-0 to adopt the resolution after staff and planning consultant John Ecolangeli explained the application and administrative process. Outcome: approved, 4-0.

- Option to purchase 106 East Mitchell Street: The council authorized the city manager to execute a three-month exclusive option to purchase agreement for 106 East Mitchell Street, a property identified by speakers and staff as historically significant, to allow time to identify a preservation-minded partner. Motion passed 4-0.

- Employee recognition and retention bonus: The council approved a one-time employee recognition/retention bonus for fiscal year 2024 that mirrors compensation initiatives discussed for public safety unions and extends a one-time payment to non-union staff. Motion passed 4-0.

Details and next steps: staff will implement the adopted fee schedule and budget items, post process materials for the NEZ and accept applications as described by the planning consultant, execute the signed option to purchase and return to council with any proposed partner, and administer the employee bonus through payroll. Several items discussed at the meeting will return for further council action, including the Winter Sports Park pavilion project and a potential millage communications consultant selection.