The city of Benton Harbor is finding itself strapped for cash as it waits for the summer property taxes to come in.
Speaking to the city Personnel and Finance Committee this month, Plante Moran’s Rhonda Hildebrand said water payments are up and some property tax money is trickling in, but for now, things are tight.
“The general fund and utility services fund balance is very low,” Hildebrand said. “The property tax has started coming in already, and there’s a sizable amount that was just received this week. So you will see some of this, an increase next month. But right now, we’re paying out invoices as soon as the cash comes in. So the cash accounts are low.”
The city’s utility fund has been low for a few years now, ever since residents stopped paying their water bills during the lead crisis. Now that the issue has been resolved, the city has begun requiring everyone to pay for water again. Hildebrand said it’s been working, with more than $430,000 collected in August for utilities.
During the lead crisis, the city repeatedly moved money from its general fund to the utility fund, but that has since stopped.
Hildebrand said she’s expecting the bulk of summer property taxes to come in this month, which will put money back into the city’s coffers.
