Commissioners reject $420,000 income-tax transfer to cover operating shortfalls
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Summary
The Benton Harbor City Commission debated a requested $420,000 transfer from city income-tax funds to the general fund on Feb. 2, 2026. After extended questioning about prior transfers, budgeting and who is accountable for rising legal and water-plant costs, the motion failed on a 5–4 roll call.
The Benton Harbor City Commission voted down a proposed transfer of $420,000 from the city income-tax account to the general fund after a prolonged debate over accountability and budget transparency.
Mayor Mohammed opened the discussion saying the transfer was needed to pay the city’s basic operating bills and to keep contractors and staff paid. Commissioner Clark Griffin challenged staff for details, stating, “We are talking about approving a transfer of income tax, for $420,000,” and asking whether previous transfers had been restored to their originating accounts.
City Manager Alex Little told commissioners the amount was to cover current bills and not to fund the two capital projects listed alongside the request. He explained some project costs, such as the city’s portion of an MDOT Fair Avenue reconstruction, are expected to come due later and would be paid from revenues when they are due. Little also listed immediate liabilities he said the transfer would address, including monthly utility payments to the water-plant operator and legal bills tied to ongoing litigation.
Multiple commissioners pressed for clearer line-item accounting and for a permanent finance director. Commissioner Fields framed the debate as an accountability issue, saying the city needs “transparency accountability and community inclusion.” Several commissioners pointed to repeated intra-year transfers in 2025 and asked for a report showing where prior transfers were spent and whether cost-saving measures had been implemented. Commissioner Henry said he would vote yes only if staff could show where the $420,000 would be spent and where the shortfalls were documented.
When the commission took a roll-call vote after discussion, Commissioners Isom, Warren, Henderson and Mayor Mohammed voted yes; Commissioners Kennard, Clark Griffin, Fields, Henry and Mayor Pro Tem Turner voted no. The motion failed.
What happens next: There was no immediate substitute motion. Staff said basic operating obligations remain unpaid if transfers are not approved, and commissioners indicated they want more detailed budget reporting and committee-level review before considering another transfer.