City of Benton Harbor facing "dire" financial situation

BENTON HARBOR, Mich. -- During a Communications and Public Relations Committee meeting Monday, Benton Harbor City Manager, Alex Little, explained Benton Harbor is struggling financially.

The city is looking to acquire a $1 million loan from the Michigan Treasury Department to help offset financial troubles dating back to 2015-2016. Little revealed the city was operating in a $2 million deficit in its utility fund for several years, which was being offset by the general fund.

To get the loan from the state, the city must first prove that they're trying to cut costs. The first steps taken include a hiring freeze and talks of suspending city-related travel. The next steps include a paid parking proposal for downtown Benton Harbor as a way of trying to gain an additional revenue stream for the city.

While the full details of the paid parking plan aren't public yet, Little said during Monday's meeting that they would need to hire several parking attendants to monitor the new spaces, but that the money coming in from the program would outweigh the cost of starting it.

Mayor Pro Tem, Shaquille Turner, says he's against the paid parking plan. Turner wants city leaders to get more creative with their plans for proving to the state that Benton Harbor's financial situation is trending in the right direction.

Turner added that the plans should include trying to bring new businesses and developments to Benton Harbor to create an influx of jobs.