Petoskey City Council voted 4–1 on Dec. 1 to adopt the city’s proposed 2026 annual budget, amending the packet to add a Pier B electrical upgrade for the marina alongside a planned dredging project, with the amendment contingent on receiving grant funding.

City Manager Horn and Finance Director Audrey summarized the proposed budget and identified a remaining shortfall that staff anticipated addressing with fund balances and potential FEMA reimbursements from 2025. Council discussion focused on project timing and grant strategy: whether to pursue both the marina electrical upgrade and dredging in 2026 or to phase them to increase the chance of securing a $150,000 grant for each. Manager Horn said the marina’s restricted fund balance appeared sufficient to cover both projects if council chose to proceed.

Council also debated whether to fund a Ward 4 subarea plan in 2026 or defer it to 2027 to allow traffic and development patterns tied to the Maple Block project to emerge; after an exchange of views, the council elected to move the Ward 4 subarea plan to 2027.

On a motion by Council Member DeMour (seconded by another councilor), and with an amendment to include the Pier B electrical upgrade pending grant funding, the budget resolution passed on roll call 4–1 (Councilor Shields recorded the lone 'No').

What’s next: Manager Horn will proceed with budget implementation and staff will pursue the grant application(s) for marina work; council indicated it will revisit several staffing proposals midyear, including public safety and planning positions.