Petoskey City board recommends 2026 parking fund budget, approves two committee appointments

The Petoskey City Downtown Management Board on Oct. 20 voted to recommend the proposed 2026 parking fund budget to city council and approved two committee appointments.

Downtown Director Amy presented the parking fund proposal, saying the 2026 budget is roughly $1,000,215 and is split about 65% operating and 35% capital, a 1.5% decrease from the current-year budget. She told the board estimated year-end 2025 revenues are about $800,100 (about 12% under budget) and projected 2026 revenues of $891,500, roughly $18,200 less than the 2025 budgeted figure. Amy attributed recent deviations to staffing changes and placemaking projects that did not occur.

Amy said the largest expenditures in the proposal are capital projects (about 35% of the budget), wages and benefits (about 30%) and contracted professional services (about 14%). Capital work outlined for 2026 includes reconstruction of the Park Garden lot and purchase of bike infrastructure, with those two items totaling approximately $430,000. Placemaking and beautification is listed as a new parking-fund expense at $30,000 to cover flowers, holiday and fall decorations; the proposal also includes a $30,000 round of façade grants plus a $10,000 carryover award for the project at 316318 Eastlake.

To encourage employee permit use, the board was told the Park Garden and Petri lots’ hourly rates would rise from $0.25 to $0.50 while monthly “blue” permits remain $30. Amy displayed a meter sticker intended to show that meter revenue benefits downtown and explained why some beautification costs moved from programs & services into the parking fund.

Amy walked members through a five-year capital improvement plan that assumes the parking fund will net about $100,000 per year in ordinary years; the plan shows temporary fund-balance drawdowns in years when large projects (such as the Darling lot rebuild projected for 2029) are undertaken and noted financing or deferral are options for very large future projects.

During discussion a public commenter said several previously funded downtown projects remain incomplete and urged sunset clauses on grants to recapture funds if work is not finished in a year. Amy explained one carryover (316318 Eastlake) related to a state SAW grant required retaining the local match while the state application and timeline were extended; she said that project expects to begin this fall.

A board member asked about a spike in administrative/bank charges reflected in 2024; Amy said the change resulted from a new accounting practice showing ParkMobile gross revenue and separately reporting bank charges and fees, which increased the apparent administrative figure.

Amy also reported the city attorney drafted amendments to chapter 21 to clarify towing authority for vehicles with an excessive number of unpaid tickets (the draft threshold discussed was five or more unpaid tickets totaling $100) and said towing costs would be charged to the vehicle owner; Amy said the draft ordinance is expected to go to council later this year.

Board member Joe moved to recommend the 2026 parking fund budget to city council; the motion was seconded and adopted by voice vote. The board also voted to approve two appointments: Chris (to the parking committee) and Jennifer Buchanan (to the design committee). Amy identified Buchanan as a landscape architect and a former staff member at Tip of the Mitt.

Next steps: the recommended budget will go to Petoskey City Council for review and final approval; the draft chapter 21 towing amendments and the special-assessment roll hearing for programs & services will be scheduled separately on the council agenda.