Biloxi City Council Special Budget Workshop - August 12, 2025

The Biloxi City Council held a special meeting on August 12, 2025, to continue reviewing the proposed 2025-2026 municipal budget. The meeting focused on the legislative budget, water and sewer fund, and public works budget. Council members discussed revenue shortfalls, rising costs (including PERS increases), and potential cuts or revenue enhancements, including a possible millage increase. Key deadlines were set for budget approval by September 9, 2025.

Public Comments & Testimony

• No members of the public spoke during the citizen comment period.

Discussion Items

• Council Reports: Councilmember Crew raised concerns about brown grass from herbicide use. Councilmember Tisdale requested additional "do not block intersection" signs at Westview Drive and Lakeview Drive on Pass Road to improve traffic safety. Councilmember Schumacher provided an update on the Brazier Bayou dredging project: a 1–2 week pause is expected as the contractor switches to a small barge.
• Legislative Budget: Carrie, the clerk, presented changes: moving audit costs ($12,900) from legislative to administrative budget, increasing postage to $8,500 (due to rate hikes), and reducing advertising and convention funds. Council had no objections.
• Water and Sewer Budget (Enterprise Fund): Director Weaver noted that water rate increases (3% annually through 2027) are not keeping pace with expenses. An estimated deficit of ~$1 million may occur, partly offset by pending FEMA reimbursements (~$600,000). Weaver requested additional time to evaluate fees and rates before proposing adjustments. Council discussed the need to balance the fund and potentially increase rates beyond the scheduled 3%.
• Public Works Budget: Council discussed high vacancy rates (~15%, with about 61 employees) and the challenge of maintaining services. The street sweeping contract costs $55,000–$60,000 annually (budgeted $75,000). Council debated leasing vehicles versus outright purchases to spread costs; the current budget includes a $93,000 increase for machinery/equipment transportation. Building maintenance proposes adding six in-house positions (plumbing, HVAC, electrical) to reduce outsourcing. Electricity costs increased ~$91,500 due to new streetlights and the Bay Bridge lighting.
• General Budget Challenges: Councilmember Tisdale highlighted rising costs (PERS increase of $320,000, inflation, vehicle costs, tariffs) while revenues are flat. Director Weaver stated the city needs to cut $2–3 million to balance the budget. Options include leasing, bonds for capital items, and a potential millage increase (publication deadline ~3 weeks). Council noted that historical vacancy savings (~$2 million) could offset some shortfalls, but full employment would require additional funds.
• Non-Departmental Requests: Council agreed to limit presentations to 4 minutes each at the next workshop to expedite the process.

Key Outcomes

• Next Workshop Scheduled: Motion approved to hold the next budget workshop on August 19, 2025, after the regular council meeting (moved by Mr. Gray, seconded by Mr. Tisdale, carried).
• Administration to Propose Cuts: The mayor’s team, led by Weaver, will develop specific spending reductions and leasing options to present at the next workshop.
• Millage Increase Consideration: Council may consider a millage increase; the legal publication deadline is approximately three weeks from the meeting date.
• Budget Approval Deadline: The final budget must be approved by September 9, 2025.
• Adjournment: Motion to adjourn carried (moved by Mr. Tisdale, seconded by Mr. Shoemaker).