Biloxi City Council Special Call Meeting – Public Hearing on FY2025-2026 Budget – September 3, 2025

The Biloxi City Council held a special call meeting on September 3, 2025, to conduct a public hearing on the proposed fiscal year 2025-2026 budget. The meeting included extensive discussion among council members and the mayor regarding revenue projections, expenditures, the use of fund balance, and the handling of vacant positions. No members of the public offered testimony during the hearing. The meeting adjourned without a vote on the budget, which is expected to be considered at a later regular meeting.

Public Comments & Testimony

• No citizens from the audience spoke during the public hearing. The chair opened the floor for public comment on the budget, but no one came forward.
• Council members then engaged in a workshop-style discussion, raising questions and providing their own observations.

Discussion Items

• Budget Overview and Financial Position:
  • Mayor and staff presented the proposed budget. Projected beginning cash balance (General Fund) is $13.5 million. Total revenues are approximately $76.4 million (excluding a proposed $10 million bond in capital projects funds). Total expenditures are approximately $84.3 million, resulting in an projected ending cash balance of a little over $500,000. The $4 million gap between revenues and expenditures is covered by using fund balance.
• Millage Increase Controversy:
  • Councilman Marshall expressed frustration that an earlier version of the budget included $2 million in anticipated revenue from a 3-mill tax increase that had not been approved by the council. He argued that this made the budget appear to have a smaller deficit than actually existed—stating the true shortfall was about $4–5 million once the phantom millage revenue was removed. The mayor and other council members acknowledged that the millage was included in a working draft but was never finalized. The budget was later revised to remove it, necessitating additional cuts.
• Vacant Positions and Budget Realism:
  • Councilman Marshall questioned the practice of fully funding vacant positions (e.g., 40+ police vacancies for years). He pointed out that budgeting for positions that are never filled inflates expenses and creates an unrealistic picture. The mayor and chief explained that while they try to hire, the budget must include those slots to have the authority to hire when candidates are found. The chief noted the difficulty in recruiting officers. Councilman Marshall argued this practice wastes money and confuses the public. The $1.9 million cut from the police department this year is primarily from eliminating budgeted vacant positions.
• Fire Truck Funding and CDBG Funds:
  • Councilman Marshall raised concerns about the use of Community Development Block Grant (CDBG) funds for fire trucks. He argued that CDBG funds—especially those designated for low- and moderate-income areas—should prioritize East Biloxi, which he says still suffers from Hurricane Katrina's aftermath. He stated that East Biloxi had to buy its own fire truck using CDBG money, while other wards receive city-wide funding for equipment. Staff clarified that CDBG funds are used in eligible zones across the city, and that Station 4 on Veterans Avenue (west end) also received a ladder truck from CDBG in 2012-2014. The most recent truck (at Station 1) also used CDBG funds. Councilman Marshall maintained that East Biloxi has been shortchanged.
• Bond Issue for Capital Projects:
  • The budget includes a $10 million bond issuance for multi-year capital items such as roofs, generators, and a water line project (Edgewater Estates water line, $2 million). Councilman Marshall noted that the previously promised East Biloxi community center (a $500,000 allocation that was later transferred to other projects) is not included in this bond. He asked for future funding commitments.
• Proposed Raises for Select Departments:
  • During the discussion, it was mentioned that raises are proposed for IT and Community Development departments, but the amounts are small (less than $20,000 total for two related positions). The council was reluctant to discuss details in open session due to personnel confidentiality, and the mayor suggested an executive session at a later date.

Key Outcomes

• The public hearing was formally opened and closed with no testimony from the public.
• No vote was taken on the budget. The council will continue deliberations, including a potential executive session on personnel matters, before a final approval at a subsequent regular meeting.
• The budget as revised shows a use of fund balance of approximately $4 million, with an ending balance of about $500,000.
• Councilman Marshall requested that staff provide further clarification on CDBG fund allocation (specifically the distinction between regular CDBG and CDBG-CV funds) and details on the $26 million unrestricted fund balance mentioned in an audit. He also requested that the East Biloxi community center project be revisited for future funding.
• The mayor stated that no layoffs are anticipated as a result of the budget cuts, and that future hiring decisions will be brought to the council through budget amendments if additional revenue (e.g., asset sales) becomes available.