Biloxi council fails to approve $16.5 million bond after debate over East Biloxi projects

Biloxi — In a special called meeting June 17, the Biloxi City Council declined to approve a resolution authorizing up to $16.5 million in general-obligation bonds, after an extended debate over which neighborhood projects would be funded and confusion during the roll call. The clerk read that the subject before the council was a resolution authorizing issuance of a General Obligation Bond, Series 2026, for sale to the Mississippi Development Bank in an aggregate principal amount not to exceed $16,500,000.

Councilmember Marshall told colleagues he could not support the bond if East Biloxi received nothing from the package. Marshall said East Biloxi has lacked a grocery store for decades and lost two recreation gyms during Hurricane Katrina, urging the council to fund “a recreation center or a grocery store — whichever comes first.” “If we don’t get anything on this table, then I don’t see how we can support just nothing,” Marshall said.

Other council members disputed that a ‘no’ vote equaled opposition to neighborhood projects. Councilmember Creel and others described the measure as a “kitchen sink” bond — a general authorization without a fixed project exhibit attached — intended to give the administration flexibility to propose eligible projects later. “A no vote is based on the amount,” Creel said, adding that projects would still require separate council approval before spending.

Dr. Tisdale recapped the process used to assemble and prioritize a list of ward projects, saying staff and council members had surveyed priorities earlier in the year and that the bond amount was intended to provide a funding envelope and permit sequencing of projects once the money was available. Members repeatedly clarified that approving the bond would not automatically spend money on any single project; each project would come back to council for a separate vote.

The council attempted a roll call on the resolution “as presented” (not to exceed $16.5 million), but several members revised or clarified their oral responses during the count. After the confusion the clerk announced the motion failed three to four. The failure means the city will not move forward with direct issuance of the proposed bonds at this time.

Council members highlighted next steps and constraints: several said the administration would continue to identify and present projects, that every project would need a future council vote with a concrete price, and that members worried about committing large debt for 20 years without tighter fiscal assurances. The meeting adjourned following the vote.

The resolution’s subject as read to the council named the Mississippi Development Bank as the intended purchaser; the clerk and counsel clarified the document before the vote was a clean copy reflecting the corrected not-to-exceed amount of $16.5 million.

The council debate centered on process and equity rather than on a specific list of projects: Marshall framed the issue as a demand for East Biloxi investment, while other members framed their opposition as concern about the dollar amount and long-term repayment. No single project was approved during the meeting, and council members said projects would require separate votes when brought forward by the administration.

The council did not adopt the bond resolution; the special meeting was adjourned.