Biloxi council told city faces $2–3 million budget gap; Sept. 9 final approval date noted

The Biloxi City Council was told at a budget workshop that the city likely must cut $2 million to $3 million to balance the fiscal 2026 budget, and councilmembers were warned a decision on additional revenue measures must be reached soon to meet publication deadlines for a millage vote. In a workshop discussion about the 2025'26 municipal budget, a staff presenter said the administration is working with the mayor to identify cuts and will return with recommendations for council review. “We still need to cut probably about $2.02 to $3,000,000 is what we're looking at to be on the safe side,” a staff member said during the meeting. The council was also told the final date to approve the budget for publication and related actions is Sept. 9, a date mentioned during the workshop as the practical deadline for completing the process. Why it matters: the council must balance limited projected revenue growth against rising costs, including state-mandated pension (PERS) contribution increases and higher utilities and contract expenses discussed at the workshop. Council members and staff highlighted both expense-side options and revenue-side choices. Staff said many costs are constrained by external factors such as PERS and vendor contracts; councilmembers urged examining leasing instead of one-time purchases for vehicles and major equipment, holding vacant positions, and reviewing nondepartmental requests. Key details and context from the workshop: - Revenue projections were broadly flat across major categories: property taxes, gaming fees, and intergovernmental aid showed little growth; charges for services were projected to increase roughly 7 percent. - Staff estimated a starting enterprise fund balance for water and sewer of roughly $3.2 million and said that separate enterprise actions would not draw on the general fund if shortfalls occur. - Administration and council suggested cuts could include delaying vehicle purchases, evaluating capital leases or bonds for long-life items, and reducing operating requests, with a promised tighter schedule for nondepartmental presentations. Council next steps: staff said they would confer with the mayor and bring specific reduction options to the council at the next budget workshop, scheduled to follow the council's regular meeting on the 19th. Councilmembers asked for a faster cadence of meetings and more detailed recommendations so that any decision on a millage increase could be made within the statutory time frame. The workshop concluded with the council scheduling the next budget workshop to continue the review and direction from staff.