Council sets Oct. 20 public hearing on downtown management board budget; members raise assessment and fund‑balance concerns

On Oct. 9 the Petoskey City Council adopted a resolution setting a public hearing for Oct. 20 to receive public comment on the Downtown Management Board’s proposed 2026 programs and services, which would be paid for through a special assessment on properties in the downtown district.

Councilmember Moore asked whether continuing increases in the assessment together with continued use of fund balance is sustainable. Amy Tweeden, identified in the record as the downtown management director, explained that the board has used accumulated fund balance — a carryover from years after COVID when planned events were canceled — to cover programs and that the management board’s stated goal is to have current assessments cover the majority of annual expenditures. Tweeden said the fund balance rose after COVID to about $260,000 and that to fully eliminate reliance on reserves the levy would require a much larger increase than the current 2.6% proposal (she said that covering the shortfall would equate to an illustrative 43% increase if made in a single year).

Tweeden described primary downtown revenue sources as special assessments, sponsorships and program fees and said some beautification and place‑making expenses were moved to the parking fund to balance budgets while preserving downtown enhancements. Council agreed that the public hearing will provide additional opportunity for property owners and residents to comment on the proposed assessment and programs.

The council’s adoption of the resolution to set the Oct. 20 hearing was by roll call vote.

Next steps: staff will present the full assessment and program packet at the public hearing on Oct. 20 and respond to questions about fund balance, proposed expenditures and potential revenue adjustments.