Biloxi City Council Budget Workshop for FY 2026-27: Non-Departmental Items and Water Rate Study - August 27, 2026
Biloxi City Council Budget Workshop: FY 2026-27 Non-Departmental Items and Water Rate Study (August 27, 2026)
The Biloxi City Council held a budget workshop on August 27, 2026, to finalize non-departmental budget allocations for fiscal year 2026-27, focusing on the Croc Center scholarship program and the proposed East Biloxi Development District. The council also received a preliminary presentation on water and sewer rate changes required by new state law. The meeting began with a unanimous 7-0 vote to adopt the agenda.
Consent Calendar
- Adoption of the agenda was approved on a 7-0 vote.
Discussion Items
- Croc Center Scholarships: Council members discussed the annual allocation for scholarships at the Croc Center in East Biloxi. Initial proposals ranged from $14,000 to $20,000. After deliberation, the council reached a consensus to allocate $18,000, with four members in favor (Shoemaker, Creel, Nail, and one other at $18,000) and others adjusting accordingly. The clerk was directed to record the consensus.
- East Biloxi Development District: Councilman Marshall and Gray proposed a $350,000 investment for the East Biloxi Development District, described as seed money for economic development. Several council members (Shoemaker, Glavin, Creel, and the council president) expressed support for the concept but cited the need for more details, workshops with county and other entities, and concerns about the budget impact. They suggested setting aside $50,000 to $60,000 under contractual services instead of non-departmental funding. Mr. Marshall argued that the city must invest to spur growth in East Biloxi, noting that past studies have not led to action. He requested a roll-call vote on the consensus. The council president called a name-by-name vote: Shoemaker (0), Glavin (0), Creel (0), President (0), Nail ($350,000), Marshall ($350,000), Gray ($350,000). The president declared the consensus to remove the East Biloxi Development District from non-departmental funding, with the possibility of future action via budget amendment.
- Water and Sewer Rate Study: Christy (city staff) presented a rate study conducted by Mississippi Rural Water. The recommendation is to switch from a tiered rate structure to a flat rate of $5.50 per month for the first 2,000 gallons and $2.75 per thousand gallons thereafter, with sewer rates at 200% of water rates. This change is required under new state law mandating rate studies every five years and adoption within 12 months. The city’s current water and sewer revenues are insufficient to cover expenses and capital improvements (estimated $7 million for a new water tank and asbestos line replacement). The council was told the proposed rates would still be among the cheapest in the state. The council plans to receive fact sheets and consider adoption at the September 15, 2026 meeting, with rates effective possibly December 1, 2026. The existing 3% annual increase (from a previous ordinance) would be replaced.
- Trash Rate: It was noted that the monthly trash pickup rate will increase from $25.50 to $27.40 next fiscal year due to the city’s contract with HCUA, which passes along cost increases.
Key Outcomes
- Croc Center Scholarships: Consensus to allocate $18,000 for scholarships in the FY 2026-27 budget.
- East Biloxi Development District: Consensus to not include funding in non-departmental budget; the item is removed from non-departmentals. Council members may consider a budget amendment later in the year for up to $60,000 under contractual services.
- Water Rate Changes: The council will receive fact sheets and prepare to adopt a new water and sewer rate ordinance at the September 15, 2026 meeting to comply with state law.
- The meeting adjourned on a 6-0 vote (Councilman Marshall having left the room).
Meeting Transcript
I'd like to thank everybody uh who's attending today's meeting. The subject of the meeting is discuss fiscal year 2026-27 municipal budget, uh non-departmental and for related purposes. Uh undertain a motion to adopt the agenda. So moved. Uh Mr. Glavin is there a second? Second. By Mr. Creel. Any discussion? All in favor. All right. Thank you. It's approved on a 7-0 vote. All right. The what we're trying to do today, we had two items in the classified as non-departmentals at our workshop Tuesday after the council meeting. One was the East East Biloxi Development District and the other was the Croc Center. Uh really what we're trying to do today is nail these two items down. And uh I appreciate Ms. Thornton being here today. Um there was there was some question or maybe a question about how to how to account uh for some of these funds, particularly the East Biloxi Development District. But having said that, uh we're underway. Let's talk about the Crocs Center first. I think that allocation remember, I think we I don't I didn't bring my sheet with me. Typically, what we've done is set aside $20,000 for scholarships to be used by the Crocs Center for the residents in East Biloxi. Those are used for uh that money is used for membership. Right. For scholarships. Right. And and and keep in mind they they far exceed the 20,000 that they do annually for scholarships. The 20,000 uh just gives them the uh opportunity to do more. Um so it the 20, it doesn't stop at the 20. The 20 just allows them to do 20,000 work more. So where what line it was at? It's what second page. Thank you. Okay, I was looking for it. Okay. Um and like I said, I don't have my notes. Had we agreed on 20,000? Uh well, you had uh I'd made the comment that I was gonna recuse myself on this issue. So you were accused, uh, Kenny, I believe was at 15, I was at 20. Um board three was at 15, and uh board one was at 14. So you had two fifteen is a fourteen and twenty a recusal. And then Mr. Marshall said that he didn't believe in any cuts anywhere. All right. Mr. Marshall, okay. So Mr.
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