Benton Harbor City Commissioners will get a budget presentation Monday night from City Manager Alex Little.
Some commissioners have previously expressed frustration that a budget for the next fiscal year hasn’t yet been available as Little grapples with inadequate funds and the city’s had to use local income tax money to plug budget holes. Speaking at a meeting of the Benton Harbor Personnel and Finance Committee this week, Little said there will be a deficit in the new budget.
“We don’t have enough money,” Little said. “We’ll start the year off knowing we don’t have enough money. We’re starting off the next five years knowing we don’t have enough money. But we’re doing whatever it takes to keep the city moving forward while we work on solving the problems.”
Little said issues with the water plant continue to drag the city down. He’s hoping more customers can be found and that help can be secured for improvements in the water system. Also, Little said litigation costs have dogged the city.
Meanwhile, Committee Chair Edward Isom urged Little to seek a new community and economic development director, but that went right back to the budget issue.
“You don’t want to overwork you,” Isom said. “There’s two positions you’ve been working, so we want to have that position posted.”
“Where will your money come from for it?” Little asked. “Well, the reason I haven’t is because it’ll just be a burden on the general fund. There’s no place else for the money to come from.”
Commissioners have approved increases to the trash collection fees and water and sewer rates to increase revenue, but that hasn’t proven enough.
In the past year, commissioners have approved two emergency transfers of income tax money to the general fund to keep the city afloat. While such emergency transfers are allowed, the income tax is primarily intended to street work.
