Biloxi weighs rate rise to rebuild water and sewer funding capacity
City of Biloxi, Mississippi · Meeting date: October 13, 2026 · Published: October 14, 2026
Biloxi City Council held a special workshop on proposed water and sewer rate changes after staff reported that expenses exceeded revenues by about $870,000 as of August 2026 and unrestricted utility cash stood at less than $1.3 million. No vote on a rate amendment was recorded in the meeting material provided.
Key points
- Staff said the proposed rate structure was designed to generate about $25 million, covering $21.4 million of FY2027 expenses, a 5% rehabilitation set-aside and $2.4 million for proposed capital projects.
- The utility’s unrestricted cash balance was reported at just under $1.3 million, while only about $45,000 was available for water and sewer fund projects.
- Priorities identified include Woolmarket Acres water and sewer, replacement of transite lines in Edgewater Estates and Sunkist, SCADA upgrades, and a new Woolmarket well and tank.
- Staff said a phased increase over two or three years was possible, but would delay projects while the utility accumulated funds.
Full report
Biloxi is considering a water and sewer rate revision intended to move the utility toward full cost recovery and provide a funding base for rehabilitation and capital works, after staff told council that operating expenses were outpacing revenues.
At the October 13 special workshop, staff reported that water and sewer expenses exceeded revenues by approximately $870,000 as of August 2026. The enterprise fund had just under $1.3 million in unrestricted cash, an amount staff said was limited for a utility with a $20 million operating fund. About $45,000 was then available for water and sewer fund projects.
The proposed rates were developed with Mississippi Rural Water, which conducted the rate study. Staff said the target was about $25 million in revenue: $21.4 million for FY2027 expenses, a 5% allocation of gross revenue for rehabilitation, and $2.4 million for proposed capital projects. The rehabilitation reserve would cover repairs rather than new works and could also provide an emergency reserve, staff said.
Priority works cited at the workshop included water and sewer service for Woolmarket Acres; transite water-line replacement in Edgewater Estates; transite-related work and water and sewer expansion in Sunkist; replacement programmes in East Biloxi areas not covered by FEMA; and SCADA installation at wells and lift stations. A new well and tank in Woolmarket were also identified amid pressure concerns in the area.
Staff said the Rodenberg lift station lacks SCADA, requiring weekend checks because the city does not have remote notification of a potential overflow. The SCADA installation for that station alone was put at $150,000 and had been deferred because revenues were insufficient to cover operating costs and planned work.
The proposed structure would charge all customer classes the same per-gallon rates, according to the presentation. Staff said low-use customers at 2,500 gallons a month would see an approximately 30% total-bill increase, compared with about 50% for a 10,000-gallon customer and 17% for a high-volume customer using 10 million gallons. The differing percentage changes reflect the existing declining-block rate structure, staff said.
Staff also said that failure to raise rates would leave the listed priorities unfunded, while phasing an increase over two or three years would delay their delivery. The workshop followed a Mississippi Department of Health audit that gave the system a 98 A+ score but deducted points because Biloxi had not completed a rate study within the previous five years.
This summary was generated by AI based on the source document and may contain errors.
Source: City Council Special, City of Biloxi