Benton Harbor City Commissioners have approved the transfer of local income tax dollars to the general fund to help the city meet its obligations for several grant-funded projects.
City Manager Alex Little requested the transfer to cover the city’s portion of three grants, money that he says will later be reimbursed by the state and placed back in the income tax fund. Little told commissioners last week that even though these are grant-funded projects, the city still has upfront costs.
“The city’s general fund does not have the money to pay these bills and wait to get reimbursed,” Little said at a committee meeting. “So we’re asking to use what money is available, which again is income tax.”
The three grants in question are for fire hydrants, police radios, and high water management. Commissioners approved the income tax transfer with no comment on Monday, but Mayor Marcus Muhammad later commended them for making what he called a tough choice.
Still pending is another request from Little to transfer $156,000 in income tax money to the general fund to pay for an increase in the city’s Medic 1 Ambulance services. Commissioners have grappled with that decision, referring the matter to multiple committees as they seek more information from Medic 1.
