Benton Harbor City Commissioners are being asked to make another emergency transfer of city income tax money into the general fund to pay the bills.
Back in March, commissioners were asked by City Manager Alex Little to transfer $450,000 to the general fund because he said the city couldn’t meet its financial obligations due to legal bills, insurance costs, and the ongoing shortfall in the utilities fund. At a meeting of the city Public Safety and Public Works Committee this week, Little requested a new transfer of $800,000 from the income tax fund.
“The city has bills and we are in a position where we’re behind on a number of them, and we’re attempting to try and get them paid,” Little said. “That’s the reason we’re going with the income tax transfer, because it is an emergency situation.”
Little said he made the request to the Public Safety and Public Works Committee “due to the urgency of the situation.” However, Commissioner Ron Singleton was skeptical and said this ought to go through a different channel.
“We believe that this item should be brought before the proper committee, which is a personnel and finance committee,” Singleton said. “So we’re going to ask that that item be moved to personnel finance committee.”
The Personnel and Finance Committee’s next meeting is Wednesday, after the next meeting of the full city commission. Nevertheless, it looks like Little will have to wait.
Little was questioned about the need for this emergency transfer when one just happened in March. Commissioner Ethel Clark Griffin said she wants more information, like how much is in the city income tax fund.
The city income tax was approved by voters in 2017 with a stated goal of raising money for streets, sidewalks, and alleys. However, it can also be used for emergencies.
For now, the city Personnel and Finance Committee will review Little’s request at its next meeting.
