The Petoskey City Council adopted the 2026 budget on Dec. 1 after an extended discussion about which projects to include and whether to chase grant funding. Councilmember DeMour (mover) brought an amendment to add the Pier B electrical upgrade to the budget alongside the marina dredging project, with a caveat that the second project would be contingent on receiving grant funding; the motion was seconded and the council approved the budget as amended by a 4–1 roll call vote.

Debate leading to the vote centered on competing priorities and timing: councilmembers discussed keeping a $50,000 allocation for a Wheelway bypass design, whether to push the Ward 4 subarea plan to 2027 to allow live traffic data to emerge, and the merits of creating a philanthropic/development officer versus keeping recurring maintenance allocations. City Manager Horn recommended including both marina projects in the budget if council planned to apply for grants and reverting if only one grant arrived. Council ultimately directed staff to include both projects with the understanding the second project would be dropped if the associated grant was not awarded.

Votes and motions at the meeting included several formal approvals:

Votes at a glance
• Consent agenda (minutes and administrative transactions) — motion by Moore, second Nobtrough; passed 5–0.
• Appointments — Drew Smith (Downtown Management Board): passed 5–0. Clark Smith (TIF board): passed 5–0. Nan (Nan/Nam) Casey (board appointment): passed 5–0.
• 2026 Budget adoption, as amended to add Pier B electrical upgrade alongside dredging (pending grant): passed 4–1.
• 2026 schedule of fees and charges (including marina wait‑list fee and park rates): passed 5–0.

Council and staff emphasized that some budget items depend on external grant awards and FEMA reimbursements expected from 2025 expenses; staff said if a grant is not received the second marina project would be dropped or delayed. The budget vote concludes the city’s formal adoption of appropriations for the 2026 fiscal year at this meeting.

The mayor called for further midyear reviews on certain staffing proposals (public safety officer and possible city planner or development officer) so council can revisit those items after retirements are completed and operational needs are assessed.