Biloxi council adopts FY2025–26 budget over objections about cuts to police, hiring freeze

The Biloxi City Council voted 4–3 to adopt the fiscal year 2025–26 municipal budget after an extended debate over personnel reductions, overtime levels and a proposed $10 million bond for capital purchases. Councilman Tisdale moved to adopt the budget and Councilman Shoemaker seconded; the motion passed by roll call.

Council members spent the largest portion of the meeting arguing whether the budget’s hiring freeze and staffing reductions — called out repeatedly for the police and public works departments — would undermine critical services. Councilman Shoemaker said he could not support the budget as presented, citing concerns that advertised vacancies remain open while the freeze persists. “I just won’t be able to support it,” Shoemaker said during debate.

Supporters of the budget, including the mayor’s office and administration staff, described the package as conservative and historically informed by projected revenues that will be finalized after the fiscal year closes. Administration comments explained that revenue projections are conservative because final receipts are not confirmed until books are closed after September and auditors complete their work. The mayor’s office also noted steps being taken to manage recurring costs and cited Biloxi’s S&P double-A-minus credit rating as evidence of fiscal strength.

A central element of the budget debate was a proposed $10 million bond issue to finance multi-year capital needs. Council discussion identified components of that borrowing: approximately $2 million for a ladder fire truck ordered in a prior year (48-month lead time), about $2 million for two engine trucks expected to be ordered next year, and the remainder for general vehicle replacements for the water/sewer fund and the general fund. The administration said some equipment — including fire apparatus and large vacuum trucks — is costly and is customarily financed over multiple years.

Council members opposed to the budget argued that the city’s sales-tax “bleed” to neighboring jurisdictions points to a structural problem that the budget does not sufficiently address; one commentator showed city-by-city sales and casino revenue figures to make the case that Biloxi does not retain retail sales tax from certain purchases. Supporters noted that casinos and state distributions limit the city’s share of gaming revenues, and that much of the casino-derived tax revenue is distributed elsewhere by statute.

The budget package also included line items for capital leases and planned purchases; staff identified $6.6 million in proceeds from capitalization for vehicles (including one ladder truck already on order and additional engine trucks) and explained delivery lead times may be two years for some apparatus.

Council members asked for follow-up briefings on the budget after year-end close and audit. The mayor and administration said they would return with additional detail during the reconciliation process and the spring audit cycle.

Decision and next steps: The budget resolution passed 4–3. Council members were evenly split on whether to support pay raises for directors in this fiscal year and on the scope of hiring freezes; opponents said the city should prioritize frontline staffing in police and public works. Staff will reconcile actual revenues once the fiscal books close and present updates to the council as part of the standard reconciliation and audit process.

Details: Motion to adopt FY2025–26 municipal budget: moved by Councilman Tisdale; seconded by Councilman Shoemaker. Vote: 4 yes, 3 no. The council also adopted the tax-levy resolution for calendar year 2025 as part of the same packet.

Context: Council members and the administration repeatedly referenced timing: final revenues will be known only after September closing and the audit; this package therefore reflects conservative estimates. Administration also said bond financing and refinancing actions previously taken saved the city money in recent years.