Biloxi council debates a $14 million bond — some members push for a higher ‘not-to-exceed’ ceiling

The Biloxi City Council met in a special-call workshop to discuss the intention to issue general-obligation bonds, originally drafted at $14 million, to pay for building repairs, HVAC and generator replacements, sidewalks, paving and water and sewer projects.

Administration staff walked through a grouped project list and a draft calendar for issuing bonds and told the council the current working figure of $14 million would yield roughly $13.5 million in cash for projects. Jane, a city bond advisor, also noted a separate water-quality grant request that staff hopes to increase from $10 million to $15 million; that grant would likely require a local match and bond proceeds were suggested as one possible source for that match.

"If we pass a $14 million bond, we'd actually yield 13.5 cash," Bond Advisor Rick said, summarizing the expected net proceeds. Staff explained that the first interest payment would generally be due about six months after issuance and that the city can structure payments to ease near-term debt-service impacts while older millage rolls off.

Council members spent most of the workshop debating priorities by ward and whether the published "not-to-exceed" amount in a resolution should be higher than $14 million to give the administration flexibility during bank discussions. Several council members argued for a larger ceiling so the city does not have to restart public notices if the final, practical financing need turns out to be greater. "My recommendation will be to make it higher," one council member said, urging a 20–25 million ceiling for negotiation purposes.

Ward-specific requests surfaced throughout the discussion. Councilman Marshall pressed for $5 million toward an East Biloxi recreation center and related site work; staff said engineering is complete and estimated about $3.5 million in construction plus roughly $1.3 million in site and utility costs. Several members also emphasized long-running demands for water and sewer in parts of Woolmarket, saying the full scope of that work would exceed the current bond but that targeted connections (for example on Mason Road) might begin progress.

Councilman Creel raised concerns about asbestos-lined distribution mains in neighborhoods including Bay Vista and Ancient Oak; staff said projects were prioritized where main breaks are most frequent (Edgewater Estates was cited as having repeat failures) and that some pockets could be handled through general-fund budgets or future rate adjustments.

On the overarching question of size, bond advisers explained the practical benefit of a higher "not-to-exceed" figure: the council can adopt a resolution that sets a ceiling (for example 20–25M), go to banks and the Mississippi Development Bank for pricing and then adopt the final bond resolution at a lower, fixed amount if desired. Some council members pushed back, saying they were uncomfortable authorizing a council ceiling larger than 20 million on principle and that the council should be fiscally cautious.

No formal vote was taken on increasing the not-to-exceed amount during the workshop. Staff agreed to prepare a substitute resolution (to change the protest date and, if directed, the not-to-exceed number) for the next meeting and to provide a bond-payment schedule and more detailed project cost estimates. The council then voted to adjourn the workshop.

What happens next: staff will draft the amended resolution and return project-specific cost schedules and a repayment timetable for council review. The city did not adopt a final bond resolution at this meeting; any change in the ceiling or the issuance itself will require later council action and the statutory publication period associated with Mississippi Development Bank financing.