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Bay St. Louis council sets Sept. 2 public hearing on FY26 budget amid questions on insurance, dredging and revenue projections
Summary
The Bay St. Louis City Council on Aug. 11 approved setting a Sept. 2 public hearing on the proposed FY26 budget and discussed a $113,000 payroll increase tied to insurance, possible funding paths for canal dredging and a staff estimate that a new sales-tax formula could add roughly $360,000 annually.
The Bay St. Louis City Council voted Aug. 11 to accept the form of the proposed fiscal 2026 budget and to set a public hearing for Sept. 2, 2025, the council’s next regular meeting, after discussion about insurance-driven payroll increases, canal-dredging funding and revenue projections.
Councilwoman Mo led the invocation before discussion shifted to budget business. The council approved an amended motion — changing the initially proposed hearing date to Sept. 2 — and carried the motion by voice vote recorded as five in favor.
A staff member told the council the most significant change between earlier and current payroll ordinance drafts was an approximately $113,000 increase largely tied to higher insurance premiums. “Our premiums $50,000 a month,” the staff member said, and noted earlier months had shown higher figures; the staff member described offsets made in departmental salary lines, including reductions in public works and utilities, to help balance the increase.
Councilors and staff also discussed options for funding canal-dredging work. The staff member described two bookkeeping approaches: creating a capital-project line within the city’s capital projects account (305) or placing funds into the reserve and later designating amounts for specific canal projects. The staff member noted that Restore grants can qualify projects that use dredged material for beneficial purposes and said the city should pursue grant funding and coordination with regional partners.
The staff member warned the council to keep budget timing in mind: “Legally we have to have it by Sept. 15,” the staff member said, and noted the city could call a special meeting after the public hearing to formally adopt the budget if needed.
On revenues, staff described a new state sales-tax formula the city expects will be favorable. “This new formula shows that we will recoup an extra $360,000, give or take, a year on sales,” the staff member said, adding that sales-tax receipts are tracked monthly and typically lag by two months. The staff member and councilors said they used conservative estimates for budgeting and reminded the council that revisions during the fiscal year remain possible if receipts fall short.
The council did not adopt the budget at the Aug. 11 recessed meeting; members set the public hearing and authorized the public-notice advertisement. The council discussed scheduling a special meeting after the hearing to adopt the budget prior to the Sept. 15 deadline if additional action is required.
