Biloxi City Council Meeting: FY2025 Audit Presentation and FY2027 Budget Workshop - July 14, 2026

The Biloxi City Council met on July 14, 2026, to receive the fiscal year 2025 audit report and begin departmental budget discussions for fiscal year 2027. The meeting highlighted the city's financial health, with an unmodified audit opinion, but also revealed significant concerns about service reductions due to a proposed budget that cuts $5.5 million in general fund expenditures and eliminates 25 vacant positions. The police department's chief warned that the current budget proposal would force a reduction in services and jeopardize public safety.

Public Comments & Testimony

• Sarah Ruske, director of the Harrison County Library System, presented a one-page summary of proposed funding cuts from 10% to 50% and their potential impact on library services. She noted that she had emailed the budget requests to the council and would attend the budget hearing.

Discussion Items

• Audit Presentation (FY2025): Maria Saylor, audit director for ABL, presented the fiscal year 2025 audit. The city received an unmodified opinion (the highest opinion). Key financial highlights: governmental activities net position of $193 million; business-type activities (water, sewer, port) net position of $395 million; general fund unassigned balance of $11.5 million (including $4 million in the economic development fund). The audit noted two federal award findings (incomplete prior-year schedule of federal awards and lack of documented policies) and two state law noncompliance findings (state preference law not considered, and bidding opened before 15 working days). The water and sewer fund had an operating loss of $9.1 million, but after removing depreciation and amortization, there was a gain of approximately $1 million. The city's total capital assets increased by about $21 million in governmental activities.
• Budget Overview: Rick Weaver, Chief Administrative Officer, presented the first draft of the FY2027 budget. The proposed budget reduces general fund expenditures by nearly $5.5 million, primarily through eliminating 25 vacant positions (no layoffs). The employee count is proposed to drop from 602 to 577. The budget aims to match revenues and expenses, but council members expressed concern that service frequency and quality would decline. The mayor noted that the city has been unable to fill vacancies for years, and the proposal reflects that reality.
• Police Department Budget: Chief Everett and finance officer Laurence Slater presented the police department's budget. The department cut $2.9 million from its target to meet the proposed $23.9 million budget. This includes reducing patrol vehicles from 11 to 3, eliminating a proactive unit for unsheltered populations, and cutting positions. The chief stated that the department cannot sustain current operations with these cuts and that the viability of the police department is on the line. He noted that 80 marked patrol vehicles are in service, 13 of which are nine years or older. The department currently has 132 sworn officers; the ideal number for adequate service is 147. Hiring is slow due to competition from other agencies. Council members discussed grant opportunities (e.g., MOHS, COPS hiring program) and alternative service delivery methods (e.g., video calls for non-emergency calls). The chief expressed that morale is low due to forced overtime and staffing shortages.
• Legislative Department Budget: Council President Glavin and the council discussed the legislative budget, which was cut by $40,756. Councilman Schumacher raised concerns about cuts to postage for ward meetings, travel to Jackson and Washington, and training. Councilman Marshall praised the legislative branch for its fiscal responsibility and argued against further cuts.
• Administration Department Budget: The administration budget was reduced by $281,000. Savings included ending the lease on the post office, reducing consultant fees, and lower appraisal costs. Increases in health insurance premiums were noted. Council members discussed the rising cost of software licenses (estimated $2.4 million annually) and utilities. The city is exploring solar street lights and reducing the electric bill. The administration also cut funding for the city newsletter (B News) from $264,000 to $25,000, retaining only mandatory mailers. Councilman Creel proposed a commission-based advertising model to keep the newsletter self-sustaining, which the administration said they would consider.
• Executive Department Budget: The executive budget was reduced by $311,000, primarily from cutting B News. The budget for conferences and travel was significantly reduced. The mayor's office noted that state retirement (PERS) contributions are increasing by half a percent per year for the next two years.
• Non-Departmental Items: The council requested that the mayor provide his thoughts on non-departmental allocations and that a list of requests that met the June 30 deadline be provided separately from late requests. Council members also discussed options for emailing water bills and using QR codes to reduce mailing costs.

Key Outcomes

• The council voted 6-0 (with Mr. Marshall absent) to approve the agenda.
• The audit was presented for informational purposes; formal acceptance will occur at a future council meeting with a resolution.
• No votes were taken on the budget; it is a first draft subject to revisions. The council will continue budget discussions in subsequent meetings.
• The council discussed potential revenue-generating ideas, including grants, private security for events, advertising in B News, and solar lighting. No formal action was taken.
• The meeting adjourned with a motion by Mr. Creel and second by Mr. Nail.