Money is tight for the city of Benton Harbor.

Speaking to the Personnel and Finance Committee last week, City Manager Alex Little said trash collection was delayed earlier in the week when the city couldn’t pay the landfill fee.

“The city’s cash flow is in dire straits in part because of a number of factors that were unanticipated,” Little said. “One, for example, the huge amount that we’re paying for insurance is one of them. Another, the tremendous amounts of money that are going toward paying legal bills.”

Little said the cost of insurance rose from $500,000 at the start of the fiscal year to $700,000, wiping out a $40,000 surplus that was originally in the budget.

City Commissioner Edward Isom, chair of the committee, said the utility fund was looking at more than $350,000 in past due bills at the end of 2024. That’s as the city is once again requiring residents to pay their water bills after a pause during lead line replacements. While many residents have started paying again, many are also still behind.

The city has started to increase some fees to get back on solid financial ground, implementing a $2.35 per month trash fee increase starting last week.