Biloxi City Council Budget Workshop for Engineering, Public Works, and Water & Sewer - August 4, 2026

The City Council held a workshop on August 4, 2026, to review the proposed FY2027 budgets for three departments: Engineering, Public Works, and Water & Sewer. The meeting focused on significant budget reductions, service level impacts, and a potential privatization of Water & Sewer operations. The agenda was approved on a 7-0 vote, and the meeting adjourned on a 7-0 vote.

Engineering Department Budget

• The Engineering budget was reduced by $212,261, with staffing remaining at 16 employees. One GIS analyst position, originally cut, will be backfilled.
• All cuts to supplies, services, and charges were absorbed by the Public Works budget; only personnel, software, and contractual items remain.

Public Works Department Budget

• The Public Works budget was reduced by $1.54 million, with staffing decreasing from 62 to 58 employees (bridge tenders moved to Port division, building maintenance added a plumber, custodial went from 6 to 5.5 positions).
• No capital outlay is included. Supplies and services reductions total $295,285, covering small equipment, fuel, cleaning supplies, signs, patching materials, vehicle parts, tools, etc.
• Some material costs (e.g., for patching, asphalt, concrete) will be paid from MIMA funds rather than the operating budget.
• Services and charges were cut by $271,306, reducing contractor work, temp labor (grass cutting), and street sweeping. Street sweeping budget dropped from $50,000 to $15,000, limiting service to Division Street and Pass Road.
• Temp labor this year averaged 5 per day, down from 20 last year, hampering operations.
• Service impacts: parks will be mowed every two weeks (instead of weekly), right-of-ways monthly, and trash/debris pickup will become monthly scheduled instead of on-demand.
• Council members expressed concern that the proposed cuts would result in “crappy service” and that the budget may be unsustainable. The administration noted revenues have leveled off and that the city is operating with limited resources.

Water & Sewer Department Budget

• The presented budget assumes privatization of operations and maintenance (O&M), representing the “worst-case scenario” with an overall increase of $7,583. Under this scenario, staffing drops from 31 to 1 (a contract manager).
• The contract would cost $4.2 million annually for labor and equipment; the city still purchases all materials.
• Capital outlay is limited to well and lift station upgrades. Budget increases include $50,000 for chlorine, $60,000 for water meters (adjusting prior amendment), and $130,000 for SCADA upgrades.
• A water rate study will be conducted; rates are expected to rise due to existing deficits, increased contract costs, and higher operating costs (chlorine, electricity, HCUA disposal fees).
• Only one bid was received for the privatization contract. The contractor would likely hire most current employees. The council discussed previous privatization attempts and expressed skepticism about whether the contractor could find workers if the city cannot.
• If privatization does not proceed, the city would need to add five employees at an estimated $400,000 cost to maintain operations.

Key Outcomes

• The meeting agenda was approved by a 7-0 vote.
• The budgets are draft and not finalized; further discussions will occur before the final budget approval (expected mid-September).
• Council members directed the administration to find additional revenue sources for Public Works, stating the current cuts are likely unsustainable.
• The Water & Sewer privatization proposal will be further reviewed by the mayor and attorney, then presented to the council for a decision.
• The meeting adjourned on a 7-0 vote.