Things just got complicated for Benton Harbor City Manager Alex Little.
At their regular meeting on Monday, Benton Harbor City Commissioners voted down a request from Little to transfer $420,000 in city income tax revenue to the general fund to pay for day to day operations. He told commissioners regular expenses like insurance, vehicle payments, and fuel remain high while the city has also been dealing with major expenses like water plant work and legal fees. He said another infusion of income tax money is needed to operate.
Commissioner Diedre Fields said she understands how the city came to be in this position, but rather than making repeated transfers of income tax money, Little should present a better plan.
“I would like to have some details in regards to what is not such an expense anymore, what are some different ideas and different things we have in place, and not to just wait again and to say all this again when he needs more money,” Fields said.
The vote to approve the transfer failed, five to four. Commissioner Sharon Henderson then sought clarity from Little on what this will mean, wondering if the city will be unable to pay for ongoing projects.
“Most of the projects are being paid from grant funds, and they have money for those,” Little said. “But our basic operating bills — insurance, gas, oil, whatnot, that’s what’s going to be in trouble. And utilities, even.”
Mayor Marcus Muhammad later warned the commission’s move will have consequences.
“So now we have workers coming to work tomorrow not knowing when we won’t be able to pay them no more,” Muhammad said. “We voted no to pay our workers. And once the trash stops getting picked up, you’re going to have a big problem because once S hits the fan, it flies everywhere.”
The city income tax is supposed to be used for infrastructure work, specifically related to streets, but it can also be used for general operations if the city commission declares an emergency. Commissioners have approved emergency transfers of income tax dollars on several occasions in recent years. However, this is a new city commission with newcomers Fields and Shaquille Turner now serving. They both voted against the transfer, alongside Juanita Henry, Ethel Clark Griffin, and Emma Kinnard.
Little could bring back the request at the commission’s next meeting, on February 16.
