The Biloxi City Council opened discussions of the fiscal 2025–26 municipal budget and reviewed staff revenue and transfer estimates, millage allocations and possible capital financing.

Diana, a city staff member working on the budget presentation, told council members the subject matter for the session is the FY2025–26 municipal budget and walked members through revenue scenarios and proposed transfers. Council members and staff discussed gaming revenue projections, millage breakdown, transfers for capital projects and potential borrowing to spread costs of major equipment.

Council member Mr. Creel reviewed gaming revenue assumptions and told the council he still considers a $23,000,000 gaming revenue estimate appropriate based on year‑to‑date results. “Year to date, we’re only up $30,000 to prior year,” he said, and he noted modest growth trends that leave a $23 million estimate plausible. The council also discussed gaming‑device fees and the possibility that some devices are not being fully captured in reporting to the Department of Revenue; Mr. Creel said the city will follow up.

Staff said previously proposed transfers of about $10.3 million were reduced to $3.25 million in the current draft because the current worksheet reflects only revenue available this year; the larger figure will reappear later in combined‑fund statements tied to fund balance. Of the $3.25 million shown now, staff identified roughly $500,000 coming from the baseball stadium fund, $250,000 allocated to a baseball‑maintenance fund, and the balance allocated to capital projects (approximately $2.5 million). Diana said there are not yet line‑by‑line project assignments for those capital funds.

The council discussed the Sanger Theatre renovation and fundraising. The mayor said a “Friends of the Sanger” fund collected donations and that fundraising activities such as naming bricks and sponsorships are expected to help cover additional interior work; the council had previously budgeted $200,000 for the Sanger in an earlier year but that fund had a zero balance as of Sept. 30, 2024.

Pension liability for Mississippi PERS drew several questions. Council member Mr. Marshall asked about the PERS “shortage,” and Diana and others explained the audit shows a net pension liability allocated to the city through the statewide plan. In discussion Mr. Marshall said, “So, so basically, we are kicking a can down the road, hoping the state don't come back and ask us to do it,” reflecting concern about how the liability is managed and funded. Staff noted statewide actions and past state contributions affect the timing and size of any required additional funding.

Council members discussed potential borrowing to address capital needs such as HVAC units, generators and equipment that are nearing replacement. The mayor cited a candidate list that includes several major generator replacements estimated at about $7,800,000 in total and noted the city has a fire truck on order that will cost about $937,000 (the city had paid about $520,000 to secure the order). Members said spreading large capital costs over multiple years through borrowing could be preferable to absorbing large single‑year budget hits.

The council received a breakdown of millage allocations staff said would total 30.1 mills under the current plan: about 20.6 mills to the general fund (which includes solid-waste collection and disposal), debt service about 7.94 mills, and smaller allocations for D and R funds (reported as 1.35 and 0.21 mills). Staff noted the exact legal debt limit was $86,000,000 in 2024 and that changes in millage could alter that ceiling; staff said they would recalculate the legal debt limit with the updated millage.

On scheduling, the council agreed to continue budget work immediately after the July 15 regular meeting and to hold additional Tuesday sessions as needed. Mr. Shoemaker moved to call the next budget meeting immediately after the July 15 meeting; Mr. Tisdale seconded and the motion carried.

Council members asked staff to provide more detail at future sessions: project‑level lists for the capital projects funded by the $3.25 million in transfers, a recalculation of the legal debt limit under current millage assumptions, and a follow‑up on gaming‑device reporting with the Department of Revenue.