Petoskey reviews downtown management board budget; council approves assessment resolution

The Downtown Management Board director presented the proposed 2026 programs and services budget, showing proposed revenues of $214,721 that include a requested 2.6% increase in the special assessment levy and use of fund balance carryover ($35,945). The board reported a projected year‑end programs and services fund balance of about $189,000 and walked through proposed expenditure changes and program cuts intended to reduce reliance on fund balance.

The budget presentation explained the allocation of funds to marketing, events and administration, and described the assessment rates in cents per square foot for ground floor, upper floors and vacant land. Councilors asked for clarification about recent transfers between funds and the mechanics for unspent construction funds; staff said unused budgeted construction dollars do not roll forward automatically but can be reallocated in future budgets. A public hearing on the proposed assessment produced no public comments and council proceeded to adopt the assessment resolution by roll call (vote recorded as 5–0).

Nonprofits: Council discussed whether nonprofit organizations should be assessed. Staff said nonprofits that directly benefit from downtown promotions are included under the current assessment and that the issue could be revisited next year as part of assessment schedule changes. Council directed staff and legal counsel to research whether modifications to rates for vacant properties or nonprofits would be permissible going forward.