Gulfport City Council FY2026/2027 Budget Workshop - August 6, 2026

The Gulfport City Council held a workshop on the evening of August 6, 2026, to review the City Manager's proposed FY2026/2027 budget. City Manager James E. O'Reilly presented a balanced, zero-growth general fund budget ($21.8M, $25,000 less than the current year), framed by the uncertainty of Amendment 3 (the property tax ballot initiative) and a slowing local economy with property value growth at 1.17%. The proposal maintained a 4.0258 millage rate, kept reserves at 22% ($4.7M), and included a 4.5% employee COLA alongside targeted discretionary spending cuts.

Public Comments & Testimony

• Karen Schwartz expressed support for once-a-week trash collection and pay-as-you-throw programs, suggested non-resident surcharges for marina fees, raised concerns about rental licensing raising rents, and asked the city to conserve energy by adjusting thermostat settings.
• John Goday requested a public restroom at Clam Bayou, citing accessibility for seniors and park visitors, and suggested simple, monitored solutions to address security concerns.
• April voiced disappointment in the tree budget reduction, questioned the need for a Leisure Services Director, noted the lack of a dedicated tree fund, and suggested exploring Saturday hours for the Senior Center.
• Barry Reinhardt, President of the Circle of Friends for the Public Library, urged the council to fully fund the Gulfport Public Library, framing it as a vital community institution for literacy, civic engagement, and well-being.
• Lonnie highlighted that condominiums generate substantial waste and asked the council to factor multi-unit dwellings into any changes to garbage collection schedules.
• Jennifer Yellen proposed diverse fundraising strategies including selling surplus assets, artist auctions, themed 5K races, engraved brick sales, and seeking small grants. She pledged to donate any personal property tax savings to the city.
• Lenny Gukenheimer questioned whether the Assistant City Manager position could be restructured and suggested the New Horizon band either pay a fee for Senior Center use or rehearse at an alternative venue.

Discussion Items

• Budget Presentation: City Manager O'Reilly detailed a $21.8M general fund budget. Key features included $340,000 in discretionary cuts (fireworks, federal lobbying, advertising), continued funding for stormwater and utility infrastructure projects, and staff reductions via attrition. He noted that a state fiscal oversight review found no wasteful spending in Gulfport.
• Vice Mayor Shaw emphasized the critical importance of the city's 22% reserve fund, reaffirmed commitments to stormwater and Senior Center improvements, and proposed a pilot program for homeowner stormwater incentivization (rebates or fee credits).
• Council Member Webb took an equity-focused approach, noting 51% of households are financially fragile. She proposed a fire assessment fee to include tax-exempt properties like Stetson, raising marina slip fees to market rates (to offset a utility tax rate hike from 8% to 5%), and argued the employee COLA should match actual regional inflation (3.2%) rather than the proposed 4.5%. She advocated aggressively leveraging capital funds for state and federal grants.
• Council Member Early strongly supported the 4.5% COLA for employee morale and retention, arguing city staff lack performance bonuses. She suggested cutting duplicative software subscriptions (e.g., short-term rental software) and viewed the marina as a significant untapped revenue source.
• Council Member Donch similarly defended the 4.5% COLA and proposed using cost-effective, pre-fabricated restrooms for public parks.
• Mayor Love outlined priorities: stormwater matching funds (willing to use reserves) and the Senior Center. He proposed redirecting $500,000 from the Waterfront Redevelopment District (WRD), pausing mooring field expansion, to a dedicated Senior Center fund. He suggested reducing trash pickup to once a week (retaining staff for drainage maintenance), cutting or restructuring the Looper, scaling back Senior Center evening hours, and reviewing the $221,000 budget for the Museum and Art Center.

Key Outcomes

• Senior Center Funding: A consensus was reached to prioritize Senior Center improvements by redirecting $500,000 in WRD funds away from the mooring field expansion. Staff will provide a revenue analysis of the mooring field for future discussion.
• Fire Assessment: The council agreed to explore a city-wide fire assessment fee to broaden the tax base for fire services, aiming to reduce the burden on traditional property taxpayers.
• Senior Center Hours: A consensus formed to scale back the extended evening hours due to low attendance. Mayor Love suggested exploring Saturday half-day operations as a potential alternative.
• Marina Fees: Staff was directed to analyze market-rate slip fees to potentially offset utility rate increases for residents.
• Employee COLA: No final decision was made. The 4.5% remains in the proposed budget, with a split opinion: Council Members Early and Donch strongly supporting it, and Council Member Webb arguing it should align with the 3.2% local inflation rate.
• Sanitation Privatization: Council members voiced unanimous opposition to privatizing garbage collection, prioritizing city staff quality and community trust.
• Future Schedule: The council scheduled further budget workshops for December (post-November election on Amendment 3) to address potential major cuts. The next regular city council meeting is set for September 3, 2026.
• Data Requests: The City Manager was directed to bring back reports on: a once-a-week sanitation model, fire assessment ordinance feasibility, marina fee comparisons, options for reducing the utility tax rate, and utilization data for the Museum and Art Center.