Chair opens Diamondhead special meeting for first fiscal-year budget workshop; $4M repair estimate for community center discussed

The Chair called a special meeting of the Diamondhead City Council to order at 5:02 p.m. on July 21 to begin the city’s first fiscal-year budget workshop.

The workshop centered on rising costs, revenue uncertainties and a set of capital needs staff said will strain the coming budget. The Presenter told the council members they should have two or three proposed changes and summarized an overall increase in expenses tied to grant matching and accounting offsets that produced a net rise of about $543,000.

Why it matters: The items discussed — ranging from road paving and drainage to the condition of the community center — would affect how much the city can fund next year without raising taxes or resorting to large-scale borrowing.

Budget overview and revenue Presenter said the city faces higher operating costs and increased appropriation requests from other entities. She asked council members to review a detail breakdown of current appropriations and consider whether to carry items forward or trim spending. "We have to increase that number," she said, referring to projected expenditures.

On facility rental revenue, the Presenter said the budget had estimated about $3,025.26 in rental fees but actual receipts have totaled about $10,000, and she asked staff to compile historical usage and revenue figures for council review. "We had estimated $3,025.26. And we got 10,000," she said.

Capital and facilities: community center Multiple architects and inspectors reviewed the community center, the Presenter said, and recommended substantial work. "They all said to be... removed completely. They're just... in terrible shape," she reported, relaying consultants' findings. She also said the cost to bring the building up could be "in the $4,000,000 range."

The Presenter discussed options including targeted repairs, demolition of some sections and adding on to remaining structures. She cautioned a full $5 million borrowing plan would overburden the city’s finances. "Borrowing $5,000,000 is way just way too much for us, as a city," she said, arguing the debt would draw heavily on general-fund capacity for many years.

Public works, staffing and code enforcement Council members and staff discussed workforce retention in public works and parity with neighboring cities. The Presenter said the city has tried to match salaries to reduce turnover. The Chair noted the city lacks a fully engaged, full‑time code-enforcement staffer and said one person stepped into both roles in December and has been "doing a great job."

Officials discussed whether the police department could assist with code enforcement tasks while the city fills positions. The Presenter said some duties may be reassigned to the police temporarily until new hires are on board.

Annexation, rezoning and counsel Council members discussed whether to call on Bob Barber for rezoning advice during annexation work and clarified the cost would be in addition to his normal on-call fee. The exchange focused on scope and whether that counsel should be engaged specifically for rezoning questions tied to annexation.

Golf-cart registration and event sponsorships Presenter outlined the city’s approach to golf-cart regulation, distinguishing low-speed, street-legal vehicles that must meet equipment requirements from basic golf carts used only on course. She said different stickers or registration categories will apply depending on whether the vehicle will be operated on public roads.

On event funding, the Presenter said sponsorship outreach helps offset big-ticket costs: "stage rental, which is almost $5,000," she said, and thanked recurring sponsors for past support while urging more outreach to cover future events.

Formal action The transcript shows a motion to adjourn the meeting. The motion was recorded as made by Finley and seconded by Shepherd; the meeting subsequently moved to close.

What’s next Council directed staff to supply more detailed revenue and appropriation breakdowns, historical rental-use data and cost estimates for proposed repairs and options for the community center. Further budget work sessions will use that information to refine funding priorities.

Attributions Quotes and attributions are taken from the meeting transcript and are identified by functional role because participant names were not introduced during the recorded remarks.