Biloxi City Council Workshop: Water and Sewer Rates Discussion – October 13, 2026

The Biloxi City Council held a workshop on October 13, 2026, to discuss a proposed comprehensive restructuring and increase of water and sewer rates. The meeting featured a detailed presentation from Water/Sewer Director Christy and Finance Director Diana. The council engaged in extensive deliberation on the necessity of the increase, its impact on residents, and the city's long-term infrastructure needs. No formal vote was taken on the rate adjustments during the workshop.

Consent Calendar

• The council unanimously adopted the meeting agenda on a 7-0 vote.

Discussion Items

• Mayoral Announcements: The Mayor outlined upcoming city events, including a special needs Halloween costume ball, trick-or-treating on Howard Avenue, a cemetery tour, and the seasonal closure of city splash bands.
• Presentation on Water and Sewer Rates: Director Christy presented on the need for rate adjustments.
  • Rationale: The proposed rate adjustments are driven by a city ordinance, state code requirements, a loss of points on the Mississippi Department of Health audit for failing to perform a rate study, and the adoption of a sound business plan recommended by Senate Bill 2526.
  • Financial Context: The city's water and sewer fund has approximately $1.3 million in unrestricted cash against a $20 million operating budget. Expenses exceeded revenues by $870,000 as of August 2026. Director Christy stated the fund balance could be depleted by a single major emergency.
  • Proposed Rate Structure: The plan moves from a multi-tiered system to a flat rate of $2.75 per thousand gallons for water and $5.50 per thousand gallons for sewer. It is projected to generate approximately $25 million in revenue to cover operating expenses, a rehab reserve, and capital projects.
  • Impact on Bills: The presentation modeled a 30% increase for low-usage customers, a 50% increase for medium-usage customers, and a 17% increase for high-usage customers.
• Council Deliberation:
  • Councilman Gray: Expressed strong support for a proactive approach, stating that continued inaction is not an option and clarifying that garbage collection fees are not part of the water fund.
  • Councilman Nail: Voiced significant concern over the cumulative financial burden on residents given the recent millage increase, acknowledging the political difficulty of such a proposal.
  • Councilman Creel: Sought operational clarifications and explored whether a phased approach or retaining a slight tier structure could alleviate the shock for residential customers. He requested a comparative analysis from the rate consultants.
  • Councilman Glavin: Noted previous gradual increases (2-3% annually) were insufficient, positioning the new rates as a way to keep Biloxi competitive while funding critical deferred projects.
  • Councilman Schumacher: Expressed strong frustration with past political inaction that allowed the problem to compound. Despite his concerns for constituents, he indicated he felt compelled to support the increase to secure long-promised infrastructure projects in Woolmarket.
  • Councilman Dr. Tisdale: Framed the discussion as a choice between reactive and proactive modes, advocating for proactive funding to allow strategic planning and execution of projects instead of fixing breaks as they occur.
  • Councilman Marshall: Had no questions.

Key Outcomes

• No Formal Vote: The council did not vote on the proposed rate changes during the workshop. Director Christy indicated the ordinance would be placed on the next meeting agenda.
• Implementation Timeline: The Mayor noted that if passed unanimously, the new rates could take effect immediately upon the vote. A 30-day waiting period is required for non-unanimous votes.
• Potential Adjustments: Councilman Creel requested an exhibit comparing the proposed flat rate structure against an alternative maintaining a tiered structure. Director Christy agreed to ask the rate consultants for this analysis.