Report: City of Muskegon Heights Owes $14 Million, Trial Set for Nov 21.

Citizens are voting for the November election for Muskegon Heights City Council. Do they know there is a $14M debt in their community?

Muskegon Heights Faces $14 Million Debt as City Council Elections Approach

As residents of Muskegon Heights prepare to cast their votes in the November City Council election, a major financial issue looms over the community — a $14 million debt tied to a legal dispute with Sid Simone, Inc.

According to court records, the City of Muskegon Heights has been in ongoing litigation with Sid Simone, Inc. since January 2023 in the 14th Judicial Circuit Court. The case stems from a staffing services contract initiated in August 2022 — the city’s second such agreement with the company that year.

By September 2022, the city allegedly defaulted on payments and breached the contract by hiring staff directly without payment or the company’s consent. The agreement reportedly included a 15% monthly compound interest rate that continues to accrue until the debt is satisfied.

In May 2025, a judicial opinion was issued in favor of Sid Simone, Inc., finding the City of Muskegon Heights liable. To date, city officials have not provided any evidence or legal documentation to dispute the company’s claims or explain why payment has not been made.

According to Sid Simone Attorney, Mr. Mahoney based out of Lansing, Michigan, The current amount owed stands at approximately $14 million, and a bench trial to determine damages is scheduled for November 21 at the Hall of Justice in downtown Muskegon.

The case has raised concerns among some residents and community observers, who question whether voters are fully aware of the city’s financial obligations as they head to the polls. With the election nearing, the outcome of both the trial and the council vote could shape the city’s fiscal and political future for years to come.