Benton Harbor City Commissioners are closer to considering one of the two additional income tax fund transfers being sought by City Manager Alex Little to pay for ongoing expenses amid a cash crunch, but they’re more skeptical of another transfer request.
At a meeting of the Personnel and Finance Committee this week, Little told members he’s seeking to borrow some money from the income tax fund to help the city meet its obligations for several grant-funded projects. He said once the grants are executed, the state will reimburse the city for the awarded amounts.
“The city’s general fund does not have the money to pay these bills and wait to get reimbursed, so we’re asking to use what money is available, which again is income tax,” Little said.
In this case, the grant reimbursements, once received, would go right back to the income tax fund. Commissioners had little comment on that request, but the other income tax transfer, to pay for an increase in the city’s Medic 1 Ambulance fees, received the same pushback from commissioners that it had at the last committee discussion.
Little is seeking $156,000 in income tax funds to cover a $156,000 per year ambulance fee increase set to take effect next month. Commissioner Juanita Henry said better terms needs to be negotiated with Medic 1.
“I’m just not ready to lay down and take it,” Henry said. “I‘m ready to fight.”
Henry also warned the city should be using the local income tax money for what it’s intended for: infrastructure work like street and alley repairs.
“We need to do something for the people with that income tax money. If not, when we ask them again, they’re going to say no because they didn’t get a fair draft on this.”
Commissioner Diedre Fields said Little needs to talk more with Medic 1 while seeking more information about how the service came to the numbers it did.
“I just can’t see them not providing medical services,” Fields said. “First of all, they wouldn’t be able to run it without us.”
Little has said he’s submitting a Freedom of Information Act request to get that information. The committee tabled the funding transfer request as more documentation is obtained.
