Biloxi looks at borrowing $14 million or more as plans for ward accounts shot down
AI-generated summary reviewed by our newsroom.
- Council debates borrowing between $14-$24 million to fund city projects.
- Mayor backs up to $20M borrowing; council president limits bond to $14M now.
- Dispute over $2.2M state internet-sales funds centers on ward accounts and authority.
Biloxi Council is still working to determine whether to borrow $14 million or more to pay for projects throughout the city.
The council on Tuesday tabled a resolution to start the borrowing process and will hold a workshop Feb. 10 to try to “whittle down” the list of projects that will be funded by a bond.
“If we did everything on that list, why it’s only going to cost about $24 million — that’s our best estimate,” said Councilman Paul Tisdale.
Repairs and replacements will take a large chunk of the bond money.
The city doesn’t need to have a final list to borrow the money, but must have most of the money spent within three years.
Council president Kenny Glavan said $14 million is the threshold that he’s willing to borrow, and said the city could come back in three years and take out another bond if needed.
How much can the city borrow?
Two city bonds will be repaid in 2027, said Mayor Andrew “FoFo” Gilich. He is comfortable borrowing up to $20 million, he said, to take care of most of the list, which is for long-term needs.
Councilman Anthony Marshall said if the city borrows only $14 million, the one project his ward has wanted for 20 years isn’t on the list, while the one in Glavan’s ward will be financed.
“This is the people’s credit card. This isn’t the councilmen’s credit card,” said Glavan. The list of projects will be determined by the entire council, Glavan said, and not just him.
Ward accounts aren’t allowed
On Jan. 27, Glavan was one of three councilmen to vote against a proposal to divide $2.2 million in Mississippi Modernization Act money equally among the seven wards. The city receives the money from the state for taxes on internet sales and must spend it primarily on roads and bridges.
Gilich vetoed the resolution, saying creating seven separate accounts isn’t allowed under the mayor-council form of government under which the city operates.
City attorney Peter Abide said after the last meeting, he found an attorney general’s opinion that confirms it isn’t allowed by state law.
Putting the funds in separate, restrictive accounts also makes it harder for Biloxi to borrow money, Gilich said.
Marshall said Gulfport provides a separate account for each ward and asked Abide to research how it is done.
If separate accounts can’t be created, “We’ve got to be gentlemanly about it,” Marshall said, and the money should dividedly “fair and equal” among each ward in Biloxi.
