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Benton Harbor leaders seek $420,000 income-tax transfer to avoid local shutdown
Summary
City leaders proposed moving $420,000 from the city income-tax fund into the general fund to cover urgent payables — including water and sanitation contracts — saying the city could face staffing and service interruptions without the transfer. A special commission meeting will consider the request.
Mayor (unnamed) urged the Benton Harbor City Commission to transfer $420,000 from the cityincome-tax fund to the general fund to pay outstanding bills and "allow for us to make payroll" and keep essential services running. "To move $420,000 from the city income tax to our general fund in order to pay outstanding payables or bills," the mayor said when announcing the proposal.
City Manager Collins told commissioners the city is facing a recurring seasonal cash-flow shortfall after federal American Rescue Plan funds and other one-time grants were largely spent. Collins said the citypreviously had about $10 million in ARPA funds that helped cover gaps but that those reserves have been drawn down. "That money drew down and then when the last one was used and gone, we went back to reality," Collins said,…
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