[PAGE 1] City of Charlevoix City Council Regular Meeting Minutes Monday, February 16, 2026 - 6:00 PM Council Chambers, 210 State Street, Charlevoix, MI 1. Pledge of Allegiance The meeting was called to order at 6:00 p.m. by Mayor Gennett. The Council, staff, and members of the public rose and recited the Pledge of Allegiance. 2. Roll Call Mayor: Lyle Gennett Members Present: Aaron Hagen, Dennis Halverson, Janet Kalbfell, Mark Knapp, Phil Parr Members Absent: Richard Spring City Manager: Mark L. Heydlauff City Clerk: Sarah J. Dvoracek 3. Presentations 4. Inquiry Regarding Conflicts of Interest Council Member Parr stated he participates in the Trout Tournament. Council concurred that there was not a conflict of interest. 5. Consent Agenda Mayor Gennett opened the item for public comment. None were heard. Motion by Kalbfell, seconded by Parr to approve the consent agenda as presented. Yeas: Kalbfell, Knapp, Halverson, Hagen, Parr Nays: None Absent: Spring Motion carried. A. City Council Meeting Minutes — February 2 and 5, 2026 Motion to approve the minutes as presented. B. Accounts Payable and Payroll Check Registers Motion to approve the accounts payable and payroll check registers as presented. Dates Description Amount 02/04/2026 Special Accounts Payable Run $2,498.47 02/13/2026 Payroll (regular payroll net $124,104.23 pay) 02/13/2026 Payroll Remittance Checks $9,596.41 02/17/2026 Regular Accounts Payable $230,864.29 02/02/2026-02/13/2026 ACH/WIRE Payments $166,676.09 01/29/2026 Special A/P Tax Disbursement $397,584.56 Grand Total $931,324.05 [PAGE 2] The detailed accounts payable and payroll check registers can be viewed on the City's website. C. Special Event Request: Memorial Day Parade Motion to approve the Memorial Day Parade Request as presented. D. Planning Commission Annual Report Motion to accept the Planning Commission Annual Report as presented. 6. Public Hearings and Actions Requiring Public Hearings A. Ordinance 868: Adoption of Amended 2025-26 Budget Mark Heydlauff, City Manager City Manager Heydlauff presented information on Ordinance 868: Adoption of Amended 2025- 26 Budget. Mayor Gennett opened the item for public comment. None were heard. Motion by Knapp, seconded by Kalbfell to approve Ordinance Amendment 868 of 2026 as presented. CITY OF CHARLEVOIX ORDINANCE NO. 868 of 2026 2025-26 BUDGET AMENDMENT #1 THE CITY OF CHARLEVOIX ORDAINS: Section 1: The budget for the fiscal year beginning April 1,2025 shall be amended for operating the City of Charlevoix. Ordinance 868 of 2026 Budget Appropriation Act of 2025-26 is hereby amended as follows: Original Amended Net Budget Budget Change General Fund RV Total 4,596,213 4,745,805 149,592 - Legislative EX Total 64,045 62,268 (1,777) - General Government EX Total 874,460 892,813 18,353 - Public Safety EX Total 1,531,518 1,467,363 (64,155) - Public Works EX Total 459,000 429,105 (29,895) - Recreation & Culture EX Total 1,680,435 1,696,120 15,685 - Other EX Total 24,200 54,315 30,115 - Fund Transfers EX Total 48,882 36,000 (12,882) Major Street Fund RV Total 481,223 437,532 (43,691) [PAGE 3] Major Street Fund EX Total 472,128 436,748 (35,380) Local Street Fund RV Total 225,943 188,535 (37,408) Local Street Fund EX Total 180,278 208,222 27,944 Parking Services Fund RV Total 163,700 181,000 17,300 Parking Services Fund EX Total 156,539 140,986 (15,553) Housing Initiatives Fund RV Total 360,200 6,200 (354,000) Housing Initiatives Fund EX Total 300,000 0 (300,000) Boat Launch Fund RV Total 45,200 48,100 2,900 Boat Launch Fund EX Total 45,128 38,115 (7,013) DDA Fund RV Total 723,305 720,943 (2,362) DDA Fund EX Total 644,990 692,081 47,091 Airport Fund RV Total 2,152,123 2,092,907 (59,216) Airport Fund EX Total 2,646,726 2,820,912 174,186 Debt Service Infrastructure RV Total 323,000 323,400 400 Debt Service New Facility RV Total 489,500 486,300 (3,200) Fire Replacement Fund RV Total 60,600 191,600 131,000 Fire Replacement Fund EX Total 500,000 583,380 83,380 Sewer Capital Fund-Tap Ins RV Total 16,200 60,200 44,000 Sewer Capital Fund-North&South Side RV Total 3,700 1,700 (2,000) Infrastructure Improvements Fund RV Total 380,168 392,436 12,268 Street Improvements RV Total 313,264 327,078 13,814 Business Park Fund EX Total 5,000 3,500 (1,500) Mt. McSauba Recreation Improvement RV Total 8,200 9,518 1,318 Fund Trail Development-Improvement Fund RV Total 659,371 1,600 (657,771) Trail Development-Improvement Fund EX Total 958,328 10,000 (948,328) Building Capital Improvement Fund RV Total 0 570,994 570,994 Building Capital Improvement Fund EX Total 0 672,654 672,654 Electric Fund RV Total 9,698,528 9,271,659 (426,869) Electric Fund EX Total 10,628,012 10,342,388 (285,624) [PAGE 4] Sewer Fund RV Total 2,936,800 3,031,143 94,343 Sewer Fund EX Total 3,793,014 3,220,237 (572,777) Water Fund RV Total 2,201,500 2,254,983 53,483 Water Fund EX Total 3,736,231 1,964,695 (1,771,536) Marina Fund RV Total 1,058,616 1,029,368 (29,248) Marina Fund EX Total 1,540,389 1,527,622 (12,767) Employee Fringe Benefit Fund RV Total 3,187,825 3,358,756 170,931 Employee Fringe Benefit Fund EX Total 3,194,900 3,320,533 125,633 Motor Pool Fund RV Total 1,361,495 1,421,587 60,092 Motor Pool Fund EX Total 1,797,200 1,889,788 92,588 Perpetual Care Trust Fund RV Total 6,000 18,512 12,512 Bad Debt Write-Offs General Fund/EMS 2,496 Electric Fund 22,383 Water Fund 3,597 Sewer Fund 4,894 DDA Fund 4,568 Misc 270 2025-26 TOTAL: 38,208 2024-25 $52,113 2023-24 $43,279 2022-23 $90,459 2021-22 $146,992 Section 2. Severability. 1. No other portion, paragraph or phase of the Code of the City of Charlevoix, Michigan shall be affected by this Ordinance except as to the above sections, and in the event any portion, section or subsection of this Ordinance shall be held invalid for any reason, such invalidation shall not be construed to affect the validity of any other part or portion of this Ordinance or of the Code of the City of Charlevoix, Michigan. [PAGE 5] Section 3. Effective Date. This Ordinance shall become effective thirty (30) days after its enactment. Ordinance No. 868 was adopted on the 16th day of February 2026 A.D., by the Charlevoix City Council as follows: Motion by: Knapp Seconded by: Kalbfell Yeas: Kalbfell, Knapp, Halverson, Hagen, Parr Nays: None Absent: Spring Motion carried. B. Ordinance 869: Adoption of the 2026-27 Budget Mark Heydlauff, City Manager City Manager Heydlauff presented information on Ordinance 869: Adoption of the 2026-27 Budget. Mayor Gennett opened the item for public comment. None were heard. Motion by Parr, seconded by Hagen to approve Ordinance Amendment 869 of 2026 as presented. CITY OF CHARLEVOIX ORDINANCE NO. 869 of 2026 BUDGET APPROPRIATION ACT THE CITY OF CHARLEVOIX ORDAINS: Section 1: WHEREAS, the City Council of the City of Charlevoix did give notice of the time and place when a public hearing would be held in conformity with provisions of Section 7.8, Article VII of the City Charter, which Public Hearing was duly held pursuant to said notice and in conformity therewith. THEREFORE, BE IT RESOLVED, that the revenues and expenditures for the fiscal year commencing on April 1, 2026 and ending March 31, 2027 are hereby appropriated on a fund level basis (a detailed breakdown by activity level can be found in the Budget Details document) as summarized by the following: GENERAL FUND TOTAL REVENUES: $4,712,948 TOTAL EXPENSE: $4,712,948 BE IT FURTHER RESOLVED, that the City Council of the City of Charlevoix does hereby levy 10.2075 mills (9.0075 mills operating and 1.2000 mills infrastructure) for the period of April 1, 2026 through March 31, 2027 on all real and eligible personal property in the City of Charlevoix according to the valuation of the same. This tax is levied for the purpose of defraying the [PAGE 6] general expense and liability of the City of Charlevoix and for infrastructure improvements, and is levied pursuant to Section 8.1, Article VIII of the City Charter; and BE IT FURTHER RESOLVED, that the City Council does hereby levy a tax not to exceed 1.2685 mills for the period April 1, 2026 through March 31, 2027 on all real and eligible personal property in the Downtown Development District, according to the valuation of the same within the district; and BE IT FURTHER RESOLVED, that the City Council does hereby levy a tax not to exceed 1 mill for the period April 1, 2026 through March 31, 2027 on all real and eligible personal property in the City of Charlevoix, according to the valuation of the same. This tax is levied for the purpose of defraying the cost of rubbish collection and other related services provided citizens allowed by the act, and is levied pursuant to Michigan Public Act 213 of 1969; and BE IT FURTHER RESOLVED, that the City Council does hereby approve the following budgets for the period April 1, 2026 through March 31, 2027 in the amounts set forth below by fund: FUND REVENUE EXPENSE Major Street Fund $ 461,997 $ 461,997 Local Street Fund 214,456 208,130 Parking Services 181,600 148,476 Boat Launch 48,100 43,900 Housing Initiatives 183,200 150,000 Electric Fund 10,766,041 10,766,041 Sewer Fund 3,411,097 3,411,097 Water Fund 3,596,972 3,596,972 Marina Fund 1,555,084 1,555,084 Airport Fund 2,772,162 2,772,162 Downtown Development Authority 721,984 684,707 Employee Fringe Benefit 3,428,881 3,419,147 Motor Vehicle Fund 1,848,049 1,848,049 Perpetual Care Trust Fund 17,900 0 General Debt Service Fund - Infrastructure 323,150 323,100 General Debt Service Fund – New Services Facility 486,300 485,000 Building Capital Improvement 142,000 142,000 Fire Fund 32,000 0 [PAGE 7] Sewer Tap-in Fund* 60,500 0 Northside/Southside Sewer Fund* 1,700 0 Infrastructure Improvement 921,700 812,800 Road Improvements 329,900 200,000 Industrial Park Fund 7,700 3,500 Mt. McSauba Recreation Fund 9,788 0 Trail Development—Improvement Fund 1,010,789 1,010,789 *These funds are part of the Sewer Fund Section 2. Severability. No other portion, paragraph or phase of the Code of the City of Charlevoix, Michigan shall be affected by this Ordinance except as to the above sections, and in the event any portion, section or subsection of this Ordinance shall be held invalid for any reason, such invalidation shall not be construed to affect the validity of any other part or portion of this Ordinance or of the Code of the City of Charlevoix, Michigan. Section 3. Effective Date. This Ordinance shall become effective thirty (30) days after its enactment. Ordinance No. 869 was adopted on the 16th day of February 2026 A.D., by the Charlevoix City Council as follows: Motion by: Parr Seconded by: Hagen Yeas: Kalbfell, Knapp, Halverson, Hagen, Parr Nays: None Absent: Spring Motion carried. 7. All Other Actions and Requests A. Council Appointment-Recreational Authority Board Sarah Dvoracek, City Clerk Clerk Dvoracek presented information on the Council Appointment—Recreational Authority Board. Mayor Gennett opened the item for public comment. None were heard. Motion by Parr, seconded by Kalbfell to appoint Mark L. Heydlauff to the Recreational Authority Board for a term to expire March 31, 2029. Yeas: Kalbfell, Halverson, Hagen, Parr Nays: Knapp Absent: Spring Motion carried. [PAGE 8] B. Special Event Request: Trout Tournament Mark Heydlauff, City Manager City Manager Heydlauff presented information on the Special Event Request: Trout Tournament. Chris Mikulski, Vice President of the Charlevoix Trout Tournament, introduced himself to Council and explained the organization's history in the community. Mayor Gennett opened the item for public comment. None were heard. Motion by Hagen, seconded by Knapp to approve the Trout Tournament Special Event and waive launch fees and overnight parking fees as requested. Yeas: Kalbfell, Knapp, Halverson, Hagen, Parr Nays: None Absent: Spring Motion carried. C. Fresh Air Aviation Parking Agreement Mark Heydlauff, City Manager City Manager Heydlauff presented information on the Fresh Air Aviation Parking Agreement. Mr. Heydlauff answered questions from Council. Mayor Gennett opened the item for public comment. None were heard. Motion by Kalbfell, seconded by Knapp to approve the parking MOU with Fresh Air Aviation as presented. Yeas: Kalbfell, Knapp, Halverson, Hagen, Parr Nays: None Absent: Spring Motion carried. 8. Reports and Communications A. Public Comment • Dave Coen, Antrim Street, provided some insight on the EPA project and some issues with neighboring houses B. City Manager's Comments • Thanked the Friends of Ferry Beach for their generous donation to the park • Regarding the EMS agreement, there is a possibility of more municipalities joining, more information in the future • Bill Gnodtke passed away, he sat on the Lake Charlevoix EMS Board, gave condolences to his family • The sidewalk plow is now fixed • Staff is researching Council's request to update the fees for the golf course and airport, more information will follow next meeting [PAGE 9] C. Mayor and Council Comments 9. Other Council Business 10. Adjourn Mayor Gennett adjourned the meeting at 6:27 p.m. _____________________________________ _____________________________________ Sarah J. Dvoracek City Clerk Lyle Gennett Mayor