Gulfport presents proposed FY2026 budget; residents press for housing, policing and transparency

City officials presented a draft FY2026 budget to the Gulfport City Council and members of the public at a special-called meeting that included a public hearing on the plan. Joseph D'Alto, identified in the meeting as the city's Director of Finance, walked councillors and residents through fund-by-fund projections and capital lists, stressing that the document was a draft for discussion and that no adoption vote would be taken that night.

D'Alto said the FY2026 draft shows a projected net surplus of $408,000 after estimated amendments to FY2025, with an anticipated beginning general-fund balance of roughly $17 million and a proposed transfer of $1,500,000 from the claims-contingency/internal-service fund into the general fund to yield an ending balance near $19,351,000 (equivalent to about three months of operating expense). He outlined enterprise and special-revenue funds, noting about $23,000,000 budgeted for water and sewer capital projects and listing capital projects tied to bond proceeds and other restricted use funds.

On capital budgeting, D'Alto told the council the draft assumes about $30,000,000 in federal grants and projected total capital spending of roughly $36,000,000 in FY2026; he warned that the ending balance would be narrow if all projects proceed as proposed. He also described two debt-service funds and scheduled principal and interest payments tied to previously issued bonds.

Residents used the hearing to press city leaders on priorities and transparency. Concerns included a $1.3 million line item tied to an aquarium penguin habitat; the mayor and staff said that $1.3 million derives from prior aquarium bond proceeds and is restricted by a bond covenant for aquarium construction purposes, limiting the council’s ability to reassign those dollars. Nicole Seller, Community Development, said the city's HUD FY25 action plan and a substantial amendment were submitted to HUD and that HUD requested additional information (notably on broadband access); she said HUD has 45 days after receiving the supplemental material and that the city expects a final answer around Sept. 29–30.

Other public concerns focused on homelessness and housing repairs, the role of CDBG/HOME (reimbursable) funds in addressing housing needs, and whether general-fund money can lawfully be used for individual home repairs; staff replied that some activities can be supported only through grant programs to avoid unconstitutional donations of public funds. Residents also asked about policing and fire funding levels; the draft shows increases in the police budget and smaller increases for fire, which prompted questions about priorities and community programs. City officials said they intend to propose an opioid-settlement-funded diversion pilot coordinated with municipal court and local behavioral health partners, subject to council approval and available settlement receipts.

Leisure-services staff explained that Harbor Lights ran a significant deficit in FY2025 (about $161,000) because of lost event nights and weather, and that the Harbor Lights fund annually supports about six full-time positions and makes a $100,000 transfer to harbor operations. Multiple residents requested clearer listings of contracted vendors and recent budgets; staff said contract lists and previous budgets are posted or will be made available online and that the administration is compiling a central clearinghouse of contracting and procurement info.

City leaders said they expect to consider revisions to the draft after public input and that a final adoption vote will be scheduled before the statutory deadline. The meeting closed with staff inviting written comments and ward-level town halls for additional discussion.