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Benton Harbor commissioners press for budget detail as finance director vacancy remains unfilled
Summary
Commissioners pressed city staff for documents and earlier access to next year’s budget amid tight cash flow and a long-vacant finance director post; the city manager said key uncertainties — collective-bargaining outcomes, legal costs and limited grant administration funds — constrain options.
Commissioner Isom convened the Personnel Finance Committee to review personnel updates and city finances as Benton Harbor prepares its next budget.
Commissioners and staff focused on filling a long-vacant finance director post and the timing of the manager’s budget. Administrator Golladay reported the HR department has 65 employees, two new hires, one termination and one staff member on medical leave, and that one new resume for the finance director position had been submitted. Commissioners discussed paying an outside executive-search firm; earlier estimates cited in the meeting ranged from roughly $15,000 up to $25,000 for different search packages.
The commission pressed why an economic development director posting was removed from the city website. The city manager said there is currently no budget to fund the position, explaining that the community development block grant (CDBG) historically subsidized portions of economic development administration but that the grant pool and allowable administrative allocation have declined. “You had $10,000,000 from ARPA at that time. That 10,000,000 is gone and we’re back to reality,” the city manager said, summarizing current constraints.
Why it matters: Commissioners want earlier access to a near-final budget to weigh priorities, including human-services supports and public-safety obligations. Commissioner Henry urged department heads to identify cuts and to provide the commission draft materials sooner so elected members can weigh in before final approval.
Staff cautioned that several hard-to-predict items affect flexibility: pending collective-bargaining results for police, fire and AFSCME (contracts noted to expire June 30), outstanding insurance issues, and court-related legal expenses tied to ongoing litigation. Finance staff told the committee that the majority of tax revenue and state-shared revenue currently fund public safety, leaving limited discretionary resources for new positions or program increases.
Commissioners asked staff to provide documentation on prior funding of the economic development functions and CDBG administration so the commission can verify what was previously eligible to cover salaries and how those streams changed over time. The city manager agreed to circulate supporting paperwork to the full commission.
The committee received the monthly income tax and operating reports. Staff noted procedural details for the income tax (annual reconciliation due April 30) and reported month-to-month variances in returns and revenue. Finance staff also reported that general fund and utility fund bank balances were low relative to outstanding payables.
What comes next: Staff will compile the requested documentation on CDBG administration and the finance/economic development position funding history, provide a more detailed draft budget timeline as permitted by available information, and return with options for recruiting a finance director — including the cost estimates for an executive search and a classified posting as lower-cost alternatives.
