Benton Harbor is taking major steps to save money in the city.
Emergency financial manager Tony Saunders announced this week that the city has negotiated a new contract with its police union.
WSJM reports that police have taken an 8 percent pay cut, eliminated holiday pay and re-worked the way overtime pay is calculated. That adds up to savings of a $170,000 a year.
According to WSJM, the Public Works Department and the Water Department are looking at a similar contract, and the departments will also be merged together.
Benton Harbor commissioners are looking at cost-saving ideas too, proposing annual pay cuts of up to $20,000 for the city's highest paid employees.
Commissioner Duane Seats suggests cutting the assistant city manager pay to $65,000, the public safety director to $88,500, and the EFM’s executive assistant salary to $50,000.
Saunders says he likes the spirit of the resolution but doesn't agree with the pay cuts.