Benton Harbor utility fund in need of money

bhcityhall2715397
bhcityhall2715397

The city of Benton Harbor will need to replenish its utility services fund as work to replace lead water service lines comes to an end. Speaking to the city’s Personnel and Finance Committee this week, Finance Director James Williams said the fund is currently empty due to people not paying their water bills. He asked for a transfer of ARPA dollars into the utility fund.

“$2.5 million needs to have a resolution immediately to go over to the utility fund because, right now, we are withholding checks and we can’t pay some of our vendors,” Williams said. “So, we need to get a resolution on that right away so that we don’t become insolvent.”

Williams said as the last few homes with lead water service lines are receiving their upgrades, it’s time for people to start paying for water again. He said the ARPA dollars will stabilize the fund.

“Nothing’s in the utilities fund, and this will buy us some time that we need to start with collections.”

Williams said the city has been taking money out of the general fund to meet utility obligations, like paying employees. Commissioner Edward Isom said that’s just robbing Peter to pay Paul. The committee sent a recommendation to the full city commission to make the $2.5 million transfer. Williams said there will still be about $2.5 million in ARPA funds left over after the transfer.