Biloxi City Council Special Meeting on Potential Millage Increase – August 20, 2025

The Biloxi City Council held a special meeting on August 20, 2025, to discuss a potential millage increase for fiscal year 2026. The primary topic was a proposal to raise the city's millage rate by 3 mills (from 30.1 to 33.1 mills), which would generate approximately $2 million annually to close the gap between revenues and expenses. The council debated the necessity, impact, and alternatives to the increase, including using fund balance, cutting expenses, and investing in economic development. After extensive discussion, a motion to authorize advertising a 3-mill increase failed by a vote of 3-3-1. The council then adjourned.

Discussion Items

• Mayor's Opening Remarks: The mayor explained that the proposed 3-mill increase would generate about $2 million in additional revenue, helping to balance the budget without drawing down reserves. He noted that the city's current millage rate is 30.1 mills, and a 3-mill increase would bring it to 33.1 mills. The increase would cost a homeowner approximately $10 per $100,000 of assessed value per year (or $60 per year for a $200,000 home).
• Councilman Tisdale's Questions: Councilman Tisdale asked about capital projects, bond obligations, and fund balance. The administration confirmed no new capital projects are planned for FY2026, but a $10.3 million bond is being considered for capital replacements. The general fund's projected ending fund balance for FY2025 is about $12.5 million, and total unrestricted fund balance across all funds is approximately $26 million. Tisdale also raised questions about cutting expenses, such as consolidating the engineering and public works director positions and reducing property maintenance costs.
• Councilman Marshall's Concerns: Councilman Marshall argued that the millage increase should be paired with investment in economic development, particularly in East Biloxi, which has received over $200 million in infrastructure improvements. He proposed adding a fourth mill specifically for economic development to generate future revenue and reduce tax burdens. The mayor countered that economic development is already part of multiple departments' missions and that the 3-mill increase is needed to fund current operations, primarily personnel costs (70% of expenses).
• Councilman Shoemaker's Opposition: Councilman Shoemaker opposed the increase, citing high insurance and housing costs for residents. He suggested finding cuts elsewhere, such as reducing the federal building lease, reviewing water/sewer and port fund performance, and doing more work in-house rather than contracting out.
• Councilman Gray's Perspective: Councilman Gray questioned whether the fund balance could absorb the gap without harming the city's bond rating. The administration indicated that a $2 million drawdown from the $26 million unrestricted fund balance likely would not significantly affect the rating.
• Councilman Glavin's Comments: Councilman Glavin noted that the council had known about the advertising deadline for more than three days and expressed difficulty supporting a tax increase without new capital projects. He also highlighted the cumulative burden on residents from rising insurance and potential school district millage increases.
• Councilman Creel: Councilman Creel voted no on the motion, aligning with the opposition.

Key Outcomes

• Motion to Authorize Advertising a 3-Mill Increase: Councilman Tisdale moved to authorize the mayor to advertise a proposed 3-mill increase (from 30.1 to 33.1 mills). Councilman Nale seconded. Councilman Marshall proposed an amendment to raise the advertised amount to 4 mills, but the amendment failed for lack of a second. The original motion then failed by a vote of 3-3-1: Yes – Gray, Nale, Tisdale; No – Creel, Shoemaker, Glavin; Abstain – Marshall. The motion did not pass.
• Adjournment: The council unanimously voted to adjourn (with Marshall abstaining initially, then voting yes). No further action was taken on the millage or budget at this meeting.