The Petoskey City Council voted Dec. 1 to adopt the city's proposed 2026 annual budget, approving an amendment to include both a Pier B electrical upgrade and a marina dredging project using restricted marina fund balance and contingent on grant awards.

Council member Demore moved to adopt the budget with the amendment adding the Pier B electrical upgrade alongside the dredging project; the motion was seconded and passed on a roll‑call vote, 4–1 (Shields opposed). The mayor announced the motion passed and the budget was approved for 2026.

Before the final vote council debated several budget topics at length. Staff said restricted marina funds are available (audited figure discussed in session) and that state grant programs typically reimburse a portion of eligible costs; council agreed to include both projects in the budget with the explicit caveat that if only one grant is awarded the other project would be deferred.

Council also debated whether to fund a Ward 4 sub‑area plan in 2026 or postpone it to 2027. After discussion and split views, council voted to move the Ward 4 sub‑area plan to 2027. Members also discussed wheelway safety funding (a $50,000 survey/design item and a $150,000 resurfacing allocation): a proposal to reallocate those dollars toward a philanthropic/development officer drew debate but did not gain enough support to remove the wheelway study funding.

Separately in the meeting the council approved routine appointments by unanimous roll call: Drew Smith to the Downtown Management Board, Clark Smith to the Tax Increment Finance Board and Nan Casey to a board (all votes 5–0). The council also approved the 2026 schedule of fees and charges (including a proposed marina wait‑list annual fee and court tournament fees) on a separate motion, 5–0.

City Manager Horn and finance staff will return with grant application status and potential budget amendments if grant awards dictate sequencing of marina projects.