Special Call Meeting

City Council | Agenda Monday, September 15, 2025 – 3:00 – 5:00 PM City Hall – Council Chambers 2309 15th Street, Gulfport 3:00 – 5:00 PM Declaration of Special Call Meeting Policy Issues 1 Discussion - on the Mayor's proposed Budget for Fiscal Year beginning October 1, 2025 and ending September 30, 2026. 2 Resolution - approving and adopting the Budget for Fiscal Year Ending 2026, as finally determined by the City's Governing Authority, and for related purposes. Setting of Next Meeting and Adjournment 1|Page City of Gulfport, Mississippi  MAYOR’S PROPOSED BUDGET For the upcoming fiscal year ending September 30, 2026 . Submitted for City Council on September 12th, 2025 Proposed Budget #5 – 2025.9.12  Table of Contents Page Mayor's Submittal Letter - City-Wide Summary 1 General Fund 3 Summary 3 Line-Item Budget 4 Footnotes 8 Grants, Subsidies, and Allocations 9 Enterprise Funds 10 Water and Sewer Fund 11 Solid Waste Fund 14 Harbor Operations Fund 15 Harbor Lights Fund 17 Special Revenue Funds 18 Disaster Relief Fund 19 Community Development Fund 20 Opioid Settlement Fund 21 Police and Fire Retirement Fund 22 Police Federal Forfeitures and Seizures Fund 23 Police County Forfeitures and Seizures Fund 25 Coastal Narcotics Enforcement Team Fund 27 EMS Operations Fund 28 Fire Rebate Fund 29 Capital Projects 30 Capital Projects List 31 Capital Projects - City Government Fund 32 Capital Projects - Water and Sewer Fund 33 Capital Projects - ARPA Fund 35 Capital Projects - MIMA Bond 37 Capital Projects - MIMA Use Tax Receipts 39 Debt Service 41 Debt Service - Ad Valorem 42 Debt Service - MIMA Bond 43 Debt Service - Combined Payment Schedule 44 Internal Service 45 Employee Health Insurance 46 Claims Contingency 48 Conclusion 50 Proposed Budget (Draft for Council#5) – 2025.9.12  City of Gulfport Proposed Budget For the Fiscal Year Ending September 30, 2026 Summary In summary, the City of Gulfport has a total of 23 different funds. • the General Fund; • 4 enterprise funds; • 9 special revenue funds; • 5 capital projects funds; • 2 debt service funds; and • 2 internal service funds With this budget, the City is expected to end September 30, 2026 with an estimated net City-wide fund balance of $77.8 million. See the summary on the next page and the individual fund details for more information. Note, that for some individual funds above, if there is a single-year budget deficit (difference between revenues received and expenditures paid in one fiscal year), this does not indicate there are any problems with these respective funds. It just indicates that the City is proposing to spend fund reserves (money acquired in prior fiscal years) in addition to anticipated revenues this year as explained by the value of the estimated ending fund balance. Page 1 Proposed Budget (Draft for Council#5) – 2025.9.12  City of Gulfport Proposed Budget For the Fiscal Year Ending September 30, 2026 General Fund City of Gulfport, MS Proposed Budget Summary For the Fiscal Year Ending September 30, 2026 Proposed Proposed Net Net Net Total Total Surplus / Estimated Fund Estimated Fund Fund Name Revenues Expenses (Deficit) Balance 9/30/2025 Balance 9/30/2026 General Fund $ 76,969,549 $ 76,561,038 $ 408,511 $ 18,942,528 $ 19,351,039 Enterprise Funds: Water Sewer Operating 40,086,675 59,725,003 (19,638,328) 41,787,902 22,149,574 Solid Waste 11,785,000 11,027,578 757,422 1,796,153 2,553,575 Harbor Operations 1,657,500 1,648,602 8,898 118,700 127,598 Harbor Lights 2,115,400 2,115,400 - 259,566 259,566 Special Revenue Funds: Disaster Relief 45,000 4,314,958 (4,269,958) 5,282,971 1,013,013 Community Development 11,395,595 11,377,637 17,958 675,900 693,858 Opioid Settlement - 1,262,928 (1,262,928) 1,262,928 - Police and Fire Retirement 895,000 895,000 - - - Police Federal Forfeitures and Seizures - - - - - Police County Forfeitures and Seizures - 134,823 (134,823) 134,823 - Coastal Narcotics Enforcement Team - - - - - EMS Operations - 56,266 (56,266) 56,266 - Fire Rebate - 1,948,014 (1,948,014) 1,948,014 - Capital Projects Capital Projects - City Govt 27,196,955 34,059,000 (6,862,045) 5,842,564 (1,019,481) Capital Projects - Water Sewer 22,808,278 26,247,714 (3,439,436) 3,467,692 28,256 Capital Projects - ARPA 19,517,898 39,117,898 (19,600,000) 19,962,729 362,729 Capital Projects - MIMA Bond 21,460,000 49,158,827 (27,698,827) 36,767,565 9,068,738 Capital Projects - MIMA 2018 Use Tax 18,335,491 18,972,369 (636,878) 12,476,140 11,839,262 Debt Service Debt Service - Ad Valorem Taxes 6,350,000 6,401,375 (51,375) 4,200,000 4,148,625 Debt Service - MIMA Bond 3,600,000 3,523,500 76,500 1,777,000 1,853,500 Internal Service Employee Health Insurance 6,455,000 6,725,000 (270,000) 500,000 230,000 Claims Contingency 3,832,100 2,380,000 1,452,100 5,200,000 5,152,100 Total City Wide Proposed Budget $ 274,505,441 $ 357,652,929 $ (83,147,488) $ 162,459,442 $ 77,811,953 The General Fund, by definition, records the accumulation of resources and the payment of expenditures for all activities that cannot be accounted for by the other types of funds. The General Fund accounts for approximately 28% of the City’s budgeted revenues and approximately 21% of the City’s budgeted expenditures. Below is the summarized proposed budget followed by the proposed budgets for general fund revenues and all departmental expenditures. Page 2 Proposed Budget (Draft for Council#5) – 2025.9.12  City of Gulfport Proposed Budget For the Fiscal Year Ending September 30, 2026 City of Gulfport, MS General Fund Proposed Budget For the Fiscal Year Ending September 30, 2026 FY2025 FY2026 Approved FY2025 Proposed Original Estimated Original Budget Actuals Budget Total Projected Revenues $ 72,751,750 $ 75,024,185 $ 76,969,549 Total Summarized Fund Expenditures Personnel Services $ 45,226,348 $ 44,095,373 $ 47,209,596 Materials and Supplies 4,842,628 5,227,549 5,033,389 Contractual Services 21,567,291 21,571,844 22,039,030 Capital Outlay 4,000 1,245,895 825,000 Grants, Subsidies, and Allocations 1,067,643 1,096,143 1,254,023 Operating Transfers - 4,140,121 200,000 Total Summarized Fund Expenditures $ 72,707,910 $ 77,376,926 $ 76,561,038 Net Operating Surplus / (Deficit) $ 43,840 $ (2,352,741) $ 408,511 Beginning Fund Balance, September 30, 2025, estimated $ 17,442,528 Cash - In $ 1,500,000 Ending Fund Balance, September 30, 2026, estimated $ 19,351,039 Page 3 Proposed Budget (Draft for Council#5) – 2025.9.12  City of Gulfport Proposed Budget For the Fiscal Year Ending September 30, 2026 City of Gulfport, MS General Fund Working Budget For the Fiscal Year Ending September 30, 2026 FY2025 FY2026 Approved FY2025 Proposed Original Estimated Foot Original Budget Actuals Note Budget Operating Revenues Property Tax $ 22,800,000 $ 25,261,411 $ 26,090,622 Sales Tax 28,900,000 28,776,662 29,639,962 Licenses and Permits 1,750,000 1,764,174 1,774,738 Franchise Fees 4,100,000 4,100,000 4,100,000 Gaming Fees 4,725,000 4,600,000 4,600,000 Grants (Federal, State, Local) 400,000 595,901 400,000 Court Fines 532,500 467,749 467,739 Intergovernmental 2,150,000 2,314,259 2,314,259 Charges for Services 5,200,000 5,074,285 5,502,485 Rents and Leases 175,000 348,077 348,077 Interest Earned 1,400,000 1,260,000 1,260,000 Miscellaneous / Other 226,600 281,096 291,096 Transfers In from Other Funds 392,400 163,570 163,570 Other Financing Sources 250 17,000 17,000 Total Projected Revenues $ 72,751,750 $ 75,024,185 $ 76,969,549 Operating Expenditures: Executive (Mayor) Personnel Services $ 283,212 $ 294,073 A $ 315,530 Materials and Supplies 2,750 10,300 2,750 Contractual Services 35,000 24,670 32,150 Capital Outlay 4,000 4,000 - Total Executive (Mayor) $ 324,962 $ 333,043 $ 350,430 Legislative (Council) Personnel Services $ 523,557 $ 567,002 A $ 583,895 Materials and Supplies 20,000 11,072 17,000 Contractual Services 410,000 315,139 405,000 Capital Outlay 2,500 1,000 - Grants, Subsidies, and Allocations 1,067,643 1,096,143 B 1,254,023 Total Legislative (Council) $ 2,023,700 $ 1,990,356 $ 2,259,918 Judicial (Courts) Personnel Services $ 1,253,877 $ 1,117,990 C $ 1,158,021 Materials and Supplies 8,500 6,784 D 11,400 Contractual Services 394,340 390,223 400,683 Capital Outlay - - - Total Judicial (Courts) $ 1,656,717 $ 1,514,997 $ 1,570,104 Page 4 Proposed Budget (Draft for Council#5) – 2025.9.12  City of Gulfport Proposed Budget For the Fiscal Year Ending September 30, 2026 City of Gulfport, MS General Fund Proposed Budget For the Fiscal Year Ending September 30, 2026 FY2025 FY2026 Approved FY2025 Proposed Original Estimated Foot Original Budget Actuals Note Budget Legal Personnel Services $ 1,159,927 $ 1,129,970 $ 1,227,239 Materials and Supplies 9,359 4,440 6,625 Contractual Services 338,270 297,682 329,142 Capital Outlay - - E 5,000 Total Legal $ 1,507,556 $ 1,432,092 $ 1,568,006 General Administration and Finance Personnel Services $ 1,748,575 $ 1,783,716 F $ 1,869,169 Materials and Supplies 66,950 59,311 72,400 Contractual Services 1,608,973 1,493,732 G 1,312,523 Capital Outlay - - - Total General Administration and Finance $ 3,424,498 $ 3,336,759 $ 3,254,092 Information Technology Personnel Services $ 1,113,190 $ 1,052,604 $ 1,085,988 Materials and Supplies 51,000 31,500 42,000 Contractual Services 1,455,036 1,447,752 H 1,729,067 Capital Outlay - - - Total Information Technology $ 2,619,226 $ 2,531,856 $ 2,857,055 Police Personnel Services $ 18,433,841 $ 18,164,559 I $ 20,407,977 Materials and Supplies 1,819,706 1,974,305 1,819,706 Contractual Services 2,685,525 2,910,044 2,723,025 Capital Outlay - 439,460 J 500,000 Total Police $ 22,939,072 $ 23,488,368 $ 25,450,708 Fire Personnel Services $ 13,926,733 $ 13,462,543 $ 14,023,595 Materials and Supplies 985,363 1,159,753 990,363 Contractual Services 626,947 667,383 626,147 Capital Outlay - 34,242 - Total Fire $ 15,539,043 $ 15,323,921 $ 15,640,105 Page 5 Proposed Budget (Draft for Council#5) – 2025.9.12  City of Gulfport Proposed Budget For the Fiscal Year Ending September 30, 2026 City of Gulfport, MS General Fund Proposed Budget For the Fiscal Year Ending September 30, 2026 FY2025 FY2026 Approved FY2025 Proposed Original Estimated Foot Original Budget Actuals Note Budget Public Works Personnel Services $ 927,805 $ 903,565 $ 870,912 Materials and Supplies 913,000 1,155,235 K 1,199,500 Contractual Services 6,483,074 6,737,688 6,981,529 Capital Outlay - 435,294 310,000 Total Public Works $ 8,323,879 $ 9,231,783 $ 9,361,942 Engineering Personnel Services $ 828,816 $ 737,382 L $ 580,437 Materials and Supplies 17,000 16,725 17,000 Contractual Services 2,788,126 2,387,869 2,401,750 Capital Outlay - - 10,000 Total Engineering $ 3,633,942 $ 3,141,976 $ 3,009,187 Leisure Services Personnel Services $ 2,899,681 $ 2,826,681 $ 2,895,215 Materials and Supplies 802,500 663,470 712,845 Contractual Services 4,000,000 3,877,472 M 4,142,015 Capital Outlay - 331,299 - Total Leisure Services $ 7,702,181 $ 7,698,923 $ 7,750,075 Urban Development Personnel Services $ 1,556,124 $ 1,566,337 N $ 1,615,224 Materials and Supplies 40,000 33,219 36,300 Contractual Services 385,000 751,027 O 598,249 Capital Outlay - 600 - Total Urban Development $ 1,981,124 $ 2,351,183 $ 2,249,773 City Events Personnel Services $ 150,136 $ 129,864 $ 155,520 Materials and Supplies 7,000 5,694 6,000 Contractual Services 106,000 75,461 106,750 Capital Outlay - - - Total City Events $ 263,136 $ 211,019 $ 268,270 Page 6 Proposed Budget (Draft for Council#5) – 2025.9.12  City of Gulfport Proposed Budget For the Fiscal Year Ending September 30, 2026 City of Gulfport, MS General Fund Proposed Budget For the Fiscal Year Ending September 30, 2026 FY2025 FY2026 Approved FY2025 Proposed Original Estimated Foot Original Budget Actuals Note Budget Building Maintenance Personnel Services $ 420,874 $ 359,087 $ 420,874 Materials and Supplies 99,500 95,741 99,500 Contractual Services 251,000 195,702 251,000 Capital Outlay - - - Total Building Maintenance $ 771,374 $ 650,531 $ 771,374 Operating Transfers $ - $ 250,000 P $ 200,000 Total Expenditures $ 72,707,910 $ 77,376,926 $ 76,561,038 Net Operating Surplus / (Deficit) $ 43,840 $ (2,352,741) $ 408,511 Beginning Fund Balance, September 30, 2025, estimated $ 17,442,528 Cash - In 1,500,000 Ending Fund Balance, September 30, 2026, estimated $ 19,351,039 Page 7 Proposed Budget (Draft for Council#5) – 2025.9.12  City of Gulfport Proposed Budget For the Fiscal Year Ending September 30, 2026 City of Gulfport, MS General Fund Proposed Budget Footnotes For the Fiscal Year Ending September 30, 2026 AAll of this budget line increase is attributed to an increase in Elected Officials Salary effective 7/1/2025. B This line item is approximately $63k more than last year. This is due to advertising being associated with the grants, subsidies, and allocations being included. C Reduced by eliminated funding for 1 Full time employee. D Added a Line for Uniforms in the amount of $3000.00 E Increased allocation for Computer Equipment F Increase due to $128K from addition of Deputy Clerk and associated Fringe (FICA, PERS, Workman's Comp, Unemployment, & Clinic); G Reduction in FY2026 Due to elimination of one-time Election Expenses of $220K H Annual Lease for new phone equipment & Increase in Maintenance Contracts I Provides funding to staff of 148 Sworn Officers, add 2 Non-Sworn Officers and 3% increase for Sworn officers in order to support Officer Retention. J Capital Outlay for replacement of aging patrol vehicles K Requested increase for $200K in Materials & Supplies for Streets & Drainage; $117K requested for Traffic Control & Signal Supplies L Reduced due to FT employees moved over to Water and Sewer M Increase due to Full Year of Consultant Services Contract N Increase in Personnel Services line to fund Assistant Director Position O Increase allocation for outsourced permit applications contracts and Comp Plan contract P Transfer out to Harbor to support operating deficit Page 8 Proposed Budget (Draft for Council#5) – 2025.9.12  City of Gulfport Proposed Budget For the Fiscal Year Ending September 30, 2026 Grants, Subsidies, and Allocations: This General Fund budget also includes grants, subsidies, and allocations provided to outside organizations as allowed by Mississippi state statutes. Grants, Subsidies, and Allocations: Fiscal Year Ended September 30, 2026 FY 2025 Requested Proposed Harrison County Library 516,000.00 531,480.00 531,480.00 * Coast Transit Authority - Operating 418,000.00 466,000.00 466,000.00 * MVFHA 35,200.00 33,600.00 33,600.00 Gulf Regional Planning 30,943.00 30,943.00 30,943.00 Harrison County Soil & Conservation 15,500.00 15,500.00 15,500.00 Gulf Coast Center for Nonviolence 27,500.00 30,000.00 30,000.00 Women's Resource Center 8,500.00 10,000.00 10,000.00 Disabilty Connection 2,500.00 2,500.00 2,500.00 American Red Cross 7,000.00 7,500.00 7,500.00 Mental Health Association of South MS 15,000.00 15,000.00 NAACP - Scholarship 3,500.00 3,500.00 BGCGC 1,500.00 1,500.00 CASA 10,000.00 10,000.00 10,000.00 TrainTastic 2,500.00 5,000.00 2,500.00 Lynn Meadows Discovery Center 2,500.00 25,000.00 2,500.00 1,096,143.00 1,167,523.00 1,162,523.00 Advertising Gulf Coast Legislative Reception 1,500.00 1,500.00 Cruisin' the Coast 24,000.00 24,000.00 Gulfport Main Street Association 32,000.00 Gumbo Fest 15,000.00 15,000.00 View the Cruise 10,000.00 10,000.00 Mistletoe & Main Street 7,000.00 7,000.00 Team Fusion 3,500.00 3,500.00 3,500.00 HCSD Career & Technial 3,500.00 3,500.00 Junior Auxiliary of Gulfport for the Children - 2,500.00 2,500.00 Center Stage 1,000.00 1,000.00 Port City Bowl 3,500.00 3,500.00 Wreaths for Biloxi National Cemetery 5,000.00 5,000.00 MS Coast Crime Stoppers 3,000.00 5,000.00 5,000.00 76,500.00 81,500.00 UNOBLIGATED 10,000.00 10000 10,000.00 TOTAL 1,172,643.00 1,177,523.00 1,254,023.00 * Items are proposed to be paid out as an allocation of Millage in the same manner the Gulport School District is paid for next year (FY2027). Page 9 Proposed Budget (Draft for Council#5) – 2025.9.12  City of Gulfport Proposed Budget For the Fiscal Year Ending September 30, 2026 Enterprise Funds Enterprise funds are used to account for activities where users are charged a fee for the service provided. Enterprise funds use the accrual basis of accounting and act very similar to how a private business would operate. The City utilizes four enterprise funds: • Water Sewer Operations – tracks the revenues and expenses related to providing a public water and sewer utility to the citizens of the City. • Solid Waste – tracks the revenues and expenses related to providing solid waste collection services to the citizens of the City. • Harbor Operations – tracks the revenues and expenses related to providing boat slip rental, fuel sales, and such at Jones Harbor. • Harbor Lights – tracks the revenues and expenses related to operating the City’s holiday Harbor Lights show presentation. The enterprise funds account for approximately 20% of the City’s budgeted revenues and approximately 21% of the City’s budgeted expenses. Page 10 Proposed Budget (Draft for Council#5) – 2025.9.12  City of Gulfport Proposed Budget For the Fiscal Year Ending September 30, 2026 Water Sewer Fund Budgeted revenues and expenses for the Water Sewer Fund are as follows. City of Gulfport, MS Water Sewer Fund Proposed Budget For the Fiscal Year Ending September 30, 2026 FY2025 FY2026 Approved FY2025 Proposed Original Estimated Foot Original Budget Actuals Note Budget Operating Revenues Charges for Services $ 34,000,000 $ 35,760,375 A $ 35,700,000 Rents and Leases 400,000.00 400,000 400,000 Interest Earned 1,650,000 1,700,000 1,600,000 Miscellaneous / Other 1,800,000 2,540,205 2,386,675 Transfers In from Other Funds 520,200 - Total Projected Revenues $ 38,370,200 $ 40,400,580 $ 40,086,675 Operating Expenses: Utility Billing Personnel Services $ 1,498,271 $ 1,296,086 $ 1,498,271 Materials and Supplies 150,000 91,471 142,800 Contractual Services 4,975,000 4,852,084 4,975,000 Capital Outlay 225,000 220,000 65,000 Total Utility Billing Operations $ 6,848,271 $ 6,459,640 $ 6,681,071 Water Operations Personnel Services $ 78,511 $ 63,458 B $ 339,295 Materials and Supplies 2,350,000 2,567,076 2,535,000 Contractual Services 5,914,744 7,027,976 5,847,078 Capital Outlay 405,000 60,000 C 450,000 Total Water Operations $ 8,748,255 $ 9,718,510 $ 9,171,373 Sewer Operations Personnel Services $ 75,346 $ 63,788 D $ 243,254 Materials and Supplies 1,305,000 849,913 898,500 Contractual Services 4,772,303 6,824,183 5,696,528 Capital Outlay 350,000 242,875 E 350,000 Total Sewer Operations $ 6,502,649 $ 7,980,759 $ 7,188,282 HCUA Sewer Treatment Contractual Services $ 7,690,000 $ 7,690,000 F $ 8,355,650 Total HCUA Sewer Treatment $ 7,690,000 $ 7,690,000 $ 8,355,650 Page 11 Proposed Budget (Draft for Council#5) – 2025.9.12  City of Gulfport Proposed Budget For the Fiscal Year Ending September 30, 2026 City of Gulfport, MS Water Sewer Fund Proposed Budget For the Fiscal Year Ending September 30, 2026 FY2025 FY2026 Approved FY2025 Proposed Original Estimated Foot Original Budget Actuals Note Budget Water Sewer Projects Transfer to Capital Projects - Water Sewer $ 3,250,000 $ 3,250,000 G $ 20,758,278 Transfer to Captial Projects - ARPA - 3,188,683 G 2,329,063 Total Water Sewer Projects $ 3,250,000 $ 6,438,683 $ 23,087,341 Water Sewer Debt Services Debt Service $ 5,307,038 $ 5,305,171 $ 5,241,286 Total Water Sewer Debt Services $ 5,307,038 $ 5,305,171 $ 5,241,286 Total Expenditures $ 38,346,213 $ 43,592,763 $ 59,725,003 Net Operating Surplus / (Deficit) $ 23,987 $ (3,192,184) $ (19,638,328) Beginning Fund Balance, September 30, 2025, estimated 41,787,902 Ending Fund Balance, September 30, 2026, estimated $ 22,149,574 Page 12 Proposed Budget (Draft for Council#5) – 2025.9.12  City of Gulfport Proposed Budget For the Fiscal Year Ending September 30, 2026 City of Gulfport, MS Water Sewer Fund Proposed Budget Footnotes For the Fiscal Year Ending September 30, 2026 A No rate increase is proposed for this fiscal year. Moving over 2 FTE's, 25% of 3 Staff and 25% of Engineering from Public works to B Water to reflect duties and responsibilities with Water and Sewer C 350K in planned expenses and $100K for vehicles Moving over 1 FTE, 25% of 3 Staff, and 25% Engineering costs to reflect duties and D responsibilities with Water and Sewer E Regular Recuring large expenses This line item increase is due to the budgeted increase from Harrison County Utility F Authority contract for sewer treatment. Planned Special Allocations to Wards 1,2, & 6 to include: Ward 1 - $4M - Southwest Gulfport main improvement project phase 1 G Ward 2 - $4M - College Park water main improvement project Ward 6 - $3M - Klein Road area water main improvement project Page 13 Proposed Budget (Draft for Council#5) – 2025.9.12  City of Gulfport Proposed Budget For the Fiscal Year Ending September 30, 2026 Solid Waste Budgeted revenues and expenses for the Solid Waste Fund are below. City of Gulfport, MS Solid Waste Fund Proposed Budget For the Fiscal Year Ending September 30, 2026 FY2025 FY2026 Approved FY2025 Proposed Original Estimated Original Budget Actuals Budget Operating Revenues Charges for Services $ 11,000,000 $ 11,673,534 $ 11,700,000 Interest Earned 65,000 83,350 85,000 Total Projected Revenues $ 11,065,000 $ 11,756,884 $ 11,785,000 Operating Expenses: Personnel Services $ 88,074 $ 86,731 $ 87,304 Contractual Services 10,940,274 10,124,000 10,940,274 Total Expenditures $ 11,028,348 $ 10,210,731 $ 11,027,578 Net Operating Surplus / (Deficit) $ 36,652 $ 1,546,153 $ 757,422 Beginning Fund Balance, September 30, 2025, estimated 1,796,153 Ending Fund Balance, September 30, 2026, estimated $ 2,553,575 Page 14 Proposed Budget (Draft for Council#5) – 2025.9.12  City of Gulfport Proposed Budget For the Fiscal Year Ending September 30, 2026 Harbor Operations Budgeted revenues and expenses for the Harbor Operations Fund are below. City of Gulfport, MS Harbor Operations Fund Proposed Budget For the Fiscal Year Ending September 30, 2026 FY2025 FY2026 Approved FY2025 Proposed Original Estimated Foot Original Budget Actuals Note Budget Operating Revenues Charges for Services $ 815,500 $ 762,892 $ 821,000 Fuel Sales 450,000 450,000 450,000 Rents and Leases 70,400 77,443 76,400 Interest Earned 3,000 7,321 6,000 Miscellaneous / Other 3,500 2,700 4,100 Transfers In from Other Funds 100,000 350,000 A 300,000 Total Projected Revenues $ 1,442,400 $ 1,650,356 $ 1,657,500 Operating Expenses: Personnel Services $ 585,861 $ 561,924 B $ 593,821 Materials and Supplies 172,000 128,358 155,900 Fuel for Resale 400,000 424,794 400,000 Other Services and Charges 459,531 419,279 446,381 Capital Outlay 50,000 57,162 C 52,500 Total Expenditures $ 1,667,392 $ 1,591,518 $ 1,648,602 Net Operating Surplus / (Deficit) $ (224,992) $ 58,839 $ 8,898 Beginning Fund Balance, September 30, 2025, estimated $ 118,700 Ending Fund Balance, September 30, 2026, estimated $ 127,598 Page 15 Proposed Budget (Draft for Council#5) – 2025.9.12  City of Gulfport Proposed Budget For the Fiscal Year Ending September 30, 2026 City of Gulfport, MS Harbor Operations Fund Proposed Budget Footnotes For the Fiscal Year Ending September 30, 2026 $100K Transfer in from Harbor Lights:$200K from General Fund to cover operating A deficit B Status quo salaries; increase from increased health costs C $45K for Maintenance vehicle (truck) & $7.5K to replace golf cart Page 16 Proposed Budget (Draft for Council#5) – 2025.9.12  City of Gulfport Proposed Budget For the Fiscal Year Ending September 30, 2026 Harbor Lights Budgeted revenues and expenses for the Harbor Lights Fund are below. City of Gulfport, MS Harbor Lights Fund Proposed Budget For the Fiscal Year Ending September 30, 2026 FY2025 FY2026 Approved FY2025 Proposed Original Estimated Original Budget Actuals Budget Operating Revenues Charges for Services $ 1,860,000 $ 1,442,129 $ 1,860,000 Sponsorships 225,000 225,000 235,000 Interest Earned 50,000 34,500 20,400 Total Projected Revenues $ 2,135,000 $ 1,701,629 $ 2,115,400 Operating Expenses: Personnel Services $ 586,378 $ 443,164 $ 608,529 Materials and Supplies 218,500 191,350 226,371 Other Services and Charges 978,600 940,026 1,030,500 Capital Outlay 250,000 189,000 150,000 Transfers To / Out 100,000 100,000 100,000 Total Expenditures $ 2,133,478 $ 1,863,540 $ 2,115,400 Net Operating Surplus / (Deficit) $ 1,522 $ (161,911) $ - Beginning Fund Balance, September 30, 2025, estimated $ 259,566 Ending Fund Balance, September 30, 2026, estimated $ 259,566 Page 17 Proposed Budget (Draft for Council#5) – 2025.9.12  City of Gulfport Proposed Budget For the Fiscal Year Ending September 30, 2026 Special Revenue Funds Special revenue funds account for the proceeds of specific revenue sources that are restricted or committed to expenditures for specific purposes. The City utilizes nine special revenue funds: • Disaster Relief – This fund is used to account for all federal and state grants and contributions that are associated with responding to natural and man-made disasters. • Community Development – This fund is used to account for HUD grant revenues and contributions received from the federal government that are to be used to support eligible affordable housing, economic, and community development activities. • Opioid Settlement – This fund is used to account for revenues and expenditures associated with the opioid litigation and settlement. • Police and Fireman’s Retirement Fund - This fund is used to account for tax revenues legally restricted for funding the police and firemen’s retirement plan. All collections are forwarded to the Public Employee’s Retirement System (PERS) for a closed fire and police retirement system managed by PERS. • Police Federal Forfeitures and Seizures Fund - This fund is used to account for federal monies seized and forfeited through drug enforcement actions and are specifically restricted for drug enforcement expenditures and other such public safety operations. • Police County Forfeitures and Seizures Fund - This fund is used to account for county monies seized and forfeited through drug enforcement actions and are specifically restricted for drug enforcement expenditures and other such public safety operations. • Coastal Narcotics Enforcement Team Fund – This fund is used to account for monies associated with the Coastal Narcotics Enforcement Team task force. • EMS Operations – This fund is used to account for intergovernmental revenues and the associated expenditures associated with operating our own EMS district. • Fire Rebate – This fund is used to accumulate and account for intergovernmental revenues and the associated expenditures with fire insurance rebate funds. The special revenues funds account for approximately 4% of the City’s budgeted revenues and approximately 6% of the City’s budgeted expenditures. Page 18 Proposed Budget (Draft for Council#5) – 2025.9.12  City of Gulfport Proposed Budget For the Fiscal Year Ending September 30, 2026 Disaster Relief Budgeted revenues and expenses for the Disaster Relief Fund are below. City of Gulfport, MS Disaster Fund Proposed Budget For the Fiscal Year Ending September 30, 2026 FY2025 FY2026 Approved FY2025 Proposed Original Estimated Original Budget Actuals Budget Operating Revenues Grants (Federal, State, Local) $ - $ - $ - Interest Earned 150,000 48,844 45,000 Loan From General Fund 5,000,000 5,000,000 Total Projected Revenues $ 5,150,000 $ 5,048,844 $ 45,000 Operating Expenses: Capital Outlay $ 5,445,756 $ 1,996,723 $ 4,314,958 Total Expenditures $ 5,445,756 $ 1,996,723 $ 4,314,958 Net Operating Surplus / (Deficit) $ (295,756) $ 3,052,122 $ (4,269,958) Beginning Fund Balance, September 30, 2025, estimated $ 5,282,971 Ending Fund Balance, September 30, 2026, estimated $ 1,013,013 Projects associated with these revenues and expenditures are included in the Capital Projects Listing. Page 19 Proposed Budget (Draft for Council#5) – 2025.9.12  City of Gulfport Proposed Budget For the Fiscal Year Ending September 30, 2026 Community Development Budgeted revenues and expenses for the Community Development Fund are below. City of Gulfport, MS Community Development Fund Proposed Budget For the Fiscal Year Ending September 30, 2026 FY2025 FY2026 Approved FY2025 Proposed Original Estimated Original Budget Actuals Budget Operating Revenues Grant Revenue - CDBG 4,150,721 208,601 5,770,272 Grant Revenue - HOME 3,412,207 69,000 5,600,324 Interest Income 25,000 25,000 25,000 Total Projected Revenues $ 7,587,928 $ 302,601 $ 11,395,595 Operating Expenses: Reimbursable Expenses: CDBG - Total Exenditures 4,150,721 - 5,779,363 HOME - Total Expenditures 3,333,075 220,967 5,577,274 Non-Reinbursable Expenses: Administrative Costs 25,800 - 21,000 Total Expenditures $ 7,509,596 $ 220,967 $ 11,377,637 Net Operating Surplus / (Deficit) $ 78,332 $ 81,634 $ 17,958 Beginning Fund Balance, September 30, 2025, estimated $ 675,900 Ending Fund Balance, September 30, 2026, estimated $ 693,858 Page 20 Proposed Budget (Draft for Council#5) – 2025.9.12  City of Gulfport Proposed Budget For the Fiscal Year Ending September 30, 2026 Opioid Settlement Fund Budgeted revenues and expenses for the Opioid Settlement Fund are below. City of Gulfport, MS Opioid Settlement Fund Proposed Budget For the Fiscal Year Ending September 30, 2026 FY2025 FY2026 Approved FY2025 Proposed Original Estimated Original Budget Actuals Budget Operating Revenues Legal Settlement Proceeds $ - $ - $ - Interest Earned 15,000 49,985 - Total Projected Revenues $ 15,000 $ 49,985 $ - Operating Expenditures: Contractual Services $ 481,290 $ - $ 1,262,928 Total Expenditures $ 481,290 $ - $ 1,262,928 Net Operating Surplus / (Deficit) $ (466,290) $ 49,985 $ (1,262,928) Beginning Fund Balance, September 30, 2025, estimated $ 1,262,928 Ending Fund Balance, September 30, 2026, estimated $ - This special revenue fund is used to account for the accumulation and allocation of costs associated with settlement funds from the Mississippi opioid settlement. To ensure this fund does not over spend the fund balance available at any given time, revenues are purposefully not budgeted and expenditures are budgeted at the fund balance available as part of the original budget process. When settlement funds are received during the fiscal year, a budget amendment will be submitted to increase revenues and increase expenditures to ensure budgeted expenditures will constantly match the fund balance available at that point in time. Page 21 Proposed Budget (Draft for Council#5) – 2025.9.12  City of Gulfport Proposed Budget For the Fiscal Year Ending September 30, 2026 Police and Fireman’s Retirement Fund Budgeted revenues and expenses for the Police and Fireman’s Retirement Fund are below. City of Gulfport, MS Special Revenues - Public Employees Retirement Fund Proposed Budget For the Fiscal Year Ending September 30, 2026 FY2025 FY2026 Approved FY2025 Proposed Original Estimated Original Budget Actuals Budget Operating Revenues Property Tax $ 834,470 $ 834,470 $ 895,000 Total Projected Revenues $ 834,470 $ 834,470 $ 895,000 Operating Expenses: Payments to PERS $ 834,470 $ 834,470 $ 895,000 Total Expenditures $ 834,470 $ 834,470 $ 895,000 Net Operating Surplus / (Deficit) $ - $ - $ - Beginning Fund Balance, September 30, 2025, estimated $ - Ending Fund Balance, September 30, 2026, estimated $ - Note that this is merely a pass-through fund for dedicated ad-valorem tax collections that are remitted to PERS. Page 22 Proposed Budget (Draft for Council#5) – 2025.9.12  City of Gulfport Proposed Budget For the Fiscal Year Ending September 30, 2026 Police Federal Forfeiture and Seizure Fund Budgeted revenues and expenses for the Police Federal Forfeiture and Seizure Fund are below. City of Gulfport, MS Special Revenues - Federal Police Forfeit Fund Proposed Budget For the Fiscal Year Ending September 30, 2026 FY2025 FY2026 Approved FY2025 Proposed Original Estimated Original Budget Actuals Budget Operating Revenues Intergovernmetnal Revenues $ - $ 93,105 $ - Interest Earnings 5,000 5,377 - Operating Transfers - 20,349 - Total Projected Revenues $ 5,000 $ 118,831 $ - Operating Expenses: Materials and Supplies $ 15,000 $ 330 $ 15,000 Contractual Services 1,217 - 5,000 Capital Outlay 123,029 11,560 167,029 Total Expenditures $ 139,246 $ 11,890 $ 187,029 Net Operating Surplus / (Deficit) $ (134,246) $ 106,941 $ (187,029) Beginning Fund Balance, September 30, 2025, estimated $ 187,029 Ending Fund Balance, September 30, 2026, estimated $ - This special revenue fund is used to account for the accumulation and allocation of costs associated with federal forfeitures and seizures. To ensure this fund does not over spend the fund balance available at any given time, revenues are purposefully not budgeted and expenditures are budgeted at the fund balance available as part of the original budget process. When settlement funds are received during the fiscal year, a budget amendment will be submitted to increase revenues and increase expenditures to ensure budgeted expenditures will constantly match the fund balance available at that point in time. Page 23 Proposed Budget (Draft for Council#5) – 2025.9.12  City of Gulfport Proposed Budget For the Fiscal Year Ending September 30, 2026 Revenues received throughout the year and the respective corresponding expenditure amounts will be added by budget amendment. This is completely dependent on the size and quantity of drug related enforcement and those related forfeitures and seizures. Page 24 Proposed Budget (Draft for Council#5) – 2025.9.12  City of Gulfport Proposed Budget For the Fiscal Year Ending September 30, 2026 Police County Forfeiture and Seizure Fund Budgeted revenues and expenses for the Police County Forfeiture and Seizure Fund are below. City of Gulfport, MS Special Revenues - County Police Forfeit Fund Proposed Budget For the Fiscal Year Ending September 30, 2026 FY2025 FY2026 Approved FY2025 Proposed Original Estimated Original Budget Actuals Budget Operating Revenues Intergovernmental Revenues $ - $ 20,545 $ - Interest Earnings 5,000 4,871 - Transfers In - 3,996 - Other Financing Sources - 94 - Total Projected Revenues $ 5,000 $ 29,506 $ - Operating Expenses: Materials and Supplies $ 24,126 $ 280 $ 15,000 Contractual Services 35,929 - 5,000 Capital Outlay 100,007 - 114,823 Total Expenditures $ 160,062 $ 280 $ 134,823 Net Operating Surplus / (Deficit) $ (155,062) $ 29,226 $ (134,823) Beginning Fund Balance, September 30, 2025, estimated $ 134,823 Ending Fund Balance, September 30, 2026, estimated $ - This special revenue fund is used to account for the accumulation and allocation of costs associated with county forfeitures and seizures. To ensure this fund does not over spend the fund balance available at any given time, revenues are purposefully not budgeted and expenditures are budgeted at the fund balance available as part of the original budget process. When settlement funds are received during the fiscal year, a budget amendment will be submitted to increase revenues and increase expenditures to ensure budgeted expenditures will constantly match the fund balance available at that point in time. Page 25 Proposed Budget (Draft for Council#5) – 2025.9.12  City of Gulfport Proposed Budget For the Fiscal Year Ending September 30, 2026 Revenues received throughout the year and the respective corresponding expenditure amounts will be added by budget amendment. This is completely dependent on the size and quantity of drug related enforcement and those related forfeitures and seizures. Page 26 Proposed Budget (Draft for Council#5) – 2025.9.12  City of Gulfport Proposed Budget For the Fiscal Year Ending September 30, 2026 Coastal Enforcement Narcotics Team Fund Budgeted revenues and expenditures for the Coastal Enforcement Narcotics Team Fund are below. City of Gulfport, MS Special Revenues - Coastal Narcotics Enforcement Team (CNET) Fund Proposed Budget For the Fiscal Year Ending September 30, 2026 FY2025 FY2026 Approved FY2025 Proposed Original Estimated Original Budget Actuals Budget Operating Revenues Intergovernmental Revenue $ - $ 169 $ - Interest Earnings 5,000 4,873 - Total Projected Revenues $ 5,000 $ 5,042 $ - Operating Expenses: Materials and Supplies $ 24,126 $ - $ 15,000 Capital Outlay 78,791 - 107,654 Total Expenditures $ 102,917 $ - $ 122,654 Net Operating Surplus / (Deficit) $ (97,917) $ 5,042 $ (122,654) Beginning Fund Balance, September 30, 2025, estimated $ 122,654 Ending Fund Balance, September 30, 2026, estimated $ - This special revenue fund is used to account for the accumulation and allocation of costs associated with Coastal Narcotics Enforcement Team forfeitures and seizures. To ensure this fund does not over spend the fund balance available at any given time, revenues are purposefully not budgeted and expenditures are budgeted at the fund balance available as part of the original budget process. When settlement funds are received during the fiscal year, a budget amendment will be submitted to increase revenues and increase expenditures to ensure budgeted expenditures will constantly match the fund balance available at that point in time. Page 27 Proposed Budget (Draft for Council#5) – 2025.9.12  City of Gulfport Proposed Budget For the Fiscal Year Ending September 30, 2026 EMS Operations Fund Budgeted revenues and expenditures for the EMS Operations Fund are below. City of Gulfport, MS Special Revenues - EMS Operations Fund Proposed Budget For the Fiscal Year Ending September 30, 2026 FY2025 FY2026 Approved FY2025 Proposed Original Estimated Original Budget Actuals Budget Operating Revenues Intergovernmental Revenues $ 40,000 $ 44,472 $ - Interest Earnings 250 1,220 - Total Projected Revenues $ 40,250 $ 45,692 $ - Operating Expenses: Capital Outlay $ 84,472 $ - $ 56,266 Total Expenditures $ 84,472 $ - $ 56,266 Net Operating Surplus / (Deficit) $ (44,222) $ 45,692 $ (56,266) Beginning Fund Balance, September 30, 2025, estimated $ 56,266 Ending Fund Balance, September 30, 2026, estimated $ - This special revenue fund is used to account for the accumulation and allocation of costs associated with EMS operations . To ensure this fund does not over spend the fund balance available at any given time, revenues are purposefully not budgeted and expenditures are budgeted at the fund balance available as part of the original budget process. When settlement funds are received during the fiscal year, a budget amendment will be submitted to increase revenues and increase expenditures to ensure budgeted expenditures will constantly match the fund balance available at that point in time. Page 28 Proposed Budget (Draft for Council#5) – 2025.9.12  City of Gulfport Proposed Budget For the Fiscal Year Ending September 30, 2026 Fire Rebate Fund Budgeted revenues and expenditures for the Fire Rebate Fund are below. City of Gulfport, MS Special Revenues - Fire Rebate Fund Proposed Budget For the Fiscal Year Ending September 30, 2026 FY2025 FY2026 Approved FY2025 Proposed Original Estimated Original Budget Actuals Budget Operating Revenues Intergovernmental Revenues $ 450,000 $ - $ - Interest Earnings 60,000 77,738 - Total Projected Revenues $ 510,000 $ 77,738 $ - Operating Expenses: Capital Outlay $ 1,897,875 $ - $ 1,948,014 Total Expenditures $ 1,897,875 $ - $ 1,948,014 Net Operating Surplus / (Deficit) $ (1,387,875) $ 77,738 $ (1,948,014) Beginning Fund Balance, September 30, 2025, estimated $ 1,948,014 Ending Fund Balance, September 30, 2026, estimated $ - This special revenue fund is used to account for the accumulation and allocation of costs associated with fire rebate money . To ensure this fund does not over spend the fund balance available at any given time, revenues are purposefully not budgeted and expenditures are budgeted at the fund balance available as part of the original budget process. When settlement funds are received during the fiscal year, a budget amendment will be submitted to increase revenues and increase expenditures to ensure budgeted expenditures will constantly match the fund balance available at that point in time. Page 29 Proposed Budget (Draft for Council#5) – 2025.9.12  City of Gulfport Proposed Budget For the Fiscal Year Ending September 30, 2026 Capital Projects Fund Capital projects funds are used to account for the financial resources used for the acquisition or construction of major capital projects. The City utilizes five capital projects funds: • Capital Projects – City Government – This fund is used to account for capital projects funded by either the City or through state-sourced grants such as Tidelands, RESTORE, MDOT, CDBG, and HUD - HOME. • Capital Projects – Water Sewer – This fund is used to account for capital projects funded primarily by or for the benefit of water and sewer customers. • Capital Projects – ARPA – This fund is used to account for capital projects funded by the American Rescue Plan Act of 2021. • Capital Projects – MIMA 2018 Use Tax Bond – This fund is used to account for capital projects funded by the bond proceeds from the $45 million Series 2021 bond issuance related to the future MIMA use tax receipts. • MIMA 2018 Use Tax Receipts – This fund is used to account for all use tax receipts associated with the Mississippi Infrastructure and Modernization Act of 2018 and its authorized expenditures for public infrastructure. The capital projects funds account for approximately 40% of the City’s budgeted revenues and approximately 47% of the City’s budgeted, expenditures. Page 30 Proposed Budget (Draft for Council#5) – 2025.9.12  City of Gulfport Proposed Budget For the Fiscal Year Ending September 30, 2026 Capital Projects – City Government Budgeted revenues and expenditures for the Capital Projects – City Government Fund are below. City of Gulfport, MS Capital Projects - Grant and City Gov't Fund Proposed Budget For the Fiscal Year Ending September 30, 2026 FY2026 Proposed Original Budget Operating Revenues Grants (Federal, State, Local) $ 26,896,955 Interest Earned 300,000 Total Projected Revenues $ 27,196,955 Operating Expenses: Capital Outlay $ 34,059,000 * Total Expenditures $ 34,059,000 Net Operating Surplus / (Deficit) $ (6,862,045) Beginning Fund Balance, September 30, 2025, estimated $ 5,842,564 Ending Fund Balance, September 30, 2026, estimated $ (1,019,481) * HUD CDBG Entitlement may contribute approximately $2 million in additional funding towards Public Facilities and Improvements as was approved by City Council in the 2025 Action Plan and 2017-2024 Substantial Amendment on July 22, 2025. Specific projects will be determined with input from the public and Council. For more information on City Government projects, please see the proceeding list of projects and funding sources. Page 31 Proposed Budget (Draft for Council#5) – 2025.9.12  City of Gulfport Proposed Budget For the Fiscal Year Ending September 30, 2026 Reconciliation from FY25 Budgeted Projects to FY26 Budgeted Projects FY 25 Original FY25 Budget Actual FY25 Total FY26 Project Name Budget Amendments Expenditures Budgeted Amount EPA STORMWATER PHASE 2 PROJECTS 100,000 - - 100,000 TIDELANDS - GULFPORT BOAT LAUNCH - 67,752 - 67,752 FORREST HEIGHTS BRAINAGE PROJECT 907,110 - - 907,110 COURTHOUSE RD.BOAT LAUNCH PRJ. 960,622 - 91,573 1,052,195 BAYOU BERNARD JAMES HILL PARK PRJ. 102,134 - 91,890 194,024 DREDGING - BRICKYARD BAYOU 272,766 - - 272,766 CITY HALL BUILDING IMPROVEMENTS 227,872 - - 227,872 CITY HALL CONFERENCE ROOM FURNITURE 8,707 - - 8,707 HARDY BUILDING 2ND FLOOR IMPROVE 4,370 - - 4,370 CITY WEBSITE 20,190 - - 20,190 CITY BUILDINGS AIR CONDITIONERS 42,897 (42,897) - - O'NEAL RD WIDEN AT KCS RR 377,478 80,000 245,745 703,223 AQUARIUM-PENGUIN HABITAT 1,335,000 - - 1,335,000 COFFEE CREEK SEWER REHAB PROJECT 2,497,590 - 45,151 2,542,741 TIDELANDS-RICHARDS BAYOU DREDGING 375,700 212,501 6,500 594,701 TIDELANDS-REMOVABLE RESTROOMS - 84,000 81,800 165,800 GULFPORT COMMERCE CORRIDOR 20,086,400 - 65,040 20,021,360 CARNEGIE LIBRARY IMPROVEMENT GRANT 115,382 - 106,837 8,545 IT INFRASTRUCTURE IMPROVEMENTS 222,042 (15,020) 28,363 178,659 FIRE STATION 7 REPAIRS 91,300 - 80,749 10,551 HWY 90 SIDEWALK - LEGACY AND DEBUYS 50,000 20,000 63,862 6,138 FIRE STATION 2 REBUILD 11,725 - 13,441 (1,716) BAYOU VIEW PARK IMPROVEMENTS 13,851 - - 13,851 WARD 1 CAPITAL IMPROVEMENT PROJECTS 335,000 - 203,909 131,091 WARD 2 CAPITAL IMPROVEMENT PROJECTS 295,000 (20,000) - 275,000 WARD 3 CAPITAL IMPROVEMENT PROJECTS 335,000 - 193,983 141,017 WARD 4 CAPITAL IMPROVEMENT PROJECTS 335,000 - - 335,000 WARD 5 CAPITAL IMPROVEMENT PROJECTS 335,000 (106,250) - 228,750 WARD 6 CAPITAL IMPROVEMENT PROJECTS 335,000 (106,250) 40,853 187,897 WARD 7 CAPITAL IMPROVEMENT PROJECTS 335,000 - 24,255 310,745 SPORTSPLEX CAPITAL IMPROVEMENTS 200,000 - 164,483 35,517 SCHOOL ZONE TRAFIC SAFETY 252,333 - - 252,333 JONES PARK HARBOR PARKING EXPANSION 1,715,000 - - 1,715,000 CITY COUNCIL CAPITAL - 50,000 17,558 32,442 MUNICIPAL COURTS CAPITAL - 15,700 11,183 4,517 LEGAL CAPITAL - 10,000 - 10,000 GEN ADMIN POLE BANNERS - 30,000 - 30,000 GEN ADMIN COMPUTERS AND IPADS - 30,000 1,201 28,799 IT COMPUTER REFRESH - 75,000 70,027 4,973 IT CISCO LEASE - 145,000 - 145,000 IT VEHICLES - 56,000 - 56,000 IT SURVEILLANCE CAMERA REFRESH - 281,000 - 281,000 POLICE VEHICLES - 500,000 497,933 2,067 CENTRAL FIRE STATION IMPROVEMENTS - 177,000 101,232 75,768 FIRE VEHICLES - 223,000 175,575 47,425 PUBLIC WORKS DRAINAGE - 686,399 144,368 542,032 PUBLIC WORKS EQUIPMENT - 200,378 200,378 - ENGINEERING COMPUTERS AND IPADS - 15,000 8,215 6,785 LEISURE SERVICES VEHICLES & EQUIP - 365,335 186,701 178,634 URBAN DEVELOPMENT VEHICLES - 70,000 57,300 12,700 CITY EVENTS BUILDING IMPROVEMENTS - 45,000 40,858 4,142 CITY EVENTS CAPITAL - 50,000 50,000 - BUILD MAINT AIR CONDITIONERS - 400,000 89,972 310,029 BUILD MAINT ELEVATORS - 200,000 17,596 182,404 BUILD MAINT CAPITAL - 200,000 198,400 1,600 UNIFIED COMM & CLOUD CONTACT CENTER - 12,000 - 12,000 CITY HALL UPGRADES - 42,897 - 42,897 MAYOR YOUTH COUNCIL CONTRIBUTIONS - 1,601 1,601 Total 32,295,469 4,055,145 3,416,930 34,059,000 Page 32 Proposed Budget (Draft for Council#5) – 2025.9.12  City of Gulfport Proposed Budget For the Fiscal Year Ending September 30, 2026 Capital Projects – Water Sewer Budgeted revenues and expenditures for the Capital Projects – Water Sewer Fund are below. City of Gulfport, MS Capital Projects - Water Sewer Fund Proposed Budget For the Fiscal Year Ending September 30, 2026 FY2025 FY2026 Approved FY2025 Proposed Original Estimated Original Budget Actuals Budget Operating Revenues Grants (Federal, State, Local) $ 1,600,000 $ - $ 1,600,000 Interest Earned 50,000 15,939 450,000 Transfer from Water Sewer Fund 3,250,000 3,250,000 20,758,278 Total Projected Revenues $ 4,900,000 $ 3,265,939 $ 22,808,278 Operating Expenses: Capital Outlay $ 5,985,639 $ 496,203 $ 26,247,714 Total Expenditures $ 5,985,639 $ 496,203 $ 26,247,714 Net Operating Surplus / (Deficit) $ (1,085,639) $ 2,769,736 $ (3,439,436) Beginning Fund Balance, September 30, 2025, estimated $ 3,467,692 Ending Fund Balance, September 30, 2026, estimated $ 28,256 For more information on the water sewer projects, please see the following list of projects and funding sources. Page 33 Proposed Budget (Draft for Council#5) – 2025.9.12  City of Gulfport Proposed Budget For the Fiscal Year Ending September 30, 2026 Capital Projects - Water & Sewer Fund (103) Reconcilation from FY25 Budgeted Projects to FY26 Budgeted Projects Amount Total FY26 FY 25 Original FY25 Budget Actual FY25 Changed for this Budgeted Project Name Budget Amendments Expenditures Budget Amount EPA NORTHWOOD HILLS WATER MAIN 2,000,000 - - 1,000,000 3,000,000 HYDRAULIC MODEL 2024 288,500 - (77,869) - 210,631 UTILITY BILLING JONES HARDY BLDG 150,557 - (158,835) 8,278 - LEAD COPPER RULE REVISION 2024 296,582 - (115,163) - 181,419 TWO NEW WATER WELLS (LOCATION TBD) 3,000,000 - (129,150) 1,500,000 4,370,850 TURKEY CREEK SEWER INTERCEPTOR IMPROVEMENTS 250,000 - (15,186) 2,750,000 2,984,814 2026 CITYWIDE LIFT STATION REHAB - - - 10,000,000 10,000,000 2026 WATER-SEWER MASTER PLAN UPDATE - - - 500,000 500,000 2026 CITYWIDE SEWER - CIPP - - - 5,000,000 5,000,000 Total 5,985,639 - (496,203) 20,758,278 26,247,714 Page 34 Proposed Budget (Draft for Council#5) – 2025.9.12  City of Gulfport Proposed Budget For the Fiscal Year Ending September 30, 2026 Capital Projects – ARPA Budgeted revenues and expenditures for the Capital Projects – ARPA Fund are below. City of Gulfport, MS Capital Projects - ARPA Fund Proposed Budget For the Fiscal Year Ending September 30, 2026 FY2025 FY2026 Approved FY2025 Proposed Original Estimated Original Budget Actuals Budget Operating Revenues Grants (Federal, State, Local) $ 17,892,243 $ 1,496,584 $ 16,888,835 Interest Earned 1,080,000 801,815 300,000 Transfer In - 3,431,408 2,329,063 Total Projected Revenues $ 18,972,243 $ 5,729,807 $ 19,517,898 Operating Expenses: Capital Outlay $ 38,119,992 $ 5,836,546 $ 39,117,898 Total Expenditures $ 38,119,992 $ 5,836,546 $ 39,117,898 Net Operating Surplus / (Deficit) $ (19,147,749) $ (106,739) $ (19,600,000) Beginning Fund Balance, September 30, 2025, estimated $ 19,962,729 Ending Fund Balance, September 30, 2026, estimated $ 362,729 For more information on ARPA projects, please see the following list of projects and funding sources. Page 35 Proposed Budget (Draft for Council#5) – 2025.9.12  City of Gulfport Proposed Budget For the Fiscal Year Ending September 30, 2026 Capital Projects - ARPA (105) Reconcilation from FY25 Budgeted Projects to FY26 Budgeted Projects Amount Total FY26 FY 25 Original FY25 Budget Actual FY25 Changed for this Budgeted Project Name Budget Amendments Expenditures Budget Amount MIMA PAVING/INFRASTRUCTURE 2,771,852 242,725 -2,361,633 286,041 938,985 CITYWIDE - LIFT STATION REHABILITATION 6,419,206 2,271,109 -277,061 194,567 8,607,821 DEBUYS ROAD FORCE MAIN 461,808 16,673 -459,653 37,587 56,415 NORTH GULFPORT HEADWORKS 18,235,000 1,381,509 -2,408,199 1,516,824 18,725,134 NORTH GULFPORT WWTP SAND FILTER 10,232,126 37,417 -330,000 850,000 10,789,543 Total 38,119,992 3,949,433 -5,836,546 2,885,019 39,117,898 Page 36 Proposed Budget (Draft for Council#5) – 2025.9.12  City of Gulfport Proposed Budget For the Fiscal Year Ending September 30, 2026 Capital Projects – MIMA 2018 Use Tax Bond Budgeted revenues and expenditures for the Capital Projects – MIMA 2018 Use Tax Bond Fund are below. City of Gulfport, MS Capital Projects - MIMA Bond Fund Proposed Budget For the Fiscal Year Ending September 30, 2026 FY2025 FY2026 Approved FY2025 Proposed Original Estimated Original Budget Actuals Budget Operating Revenues Grants (Federal, State, Local) $ 20,460,000 $ - $ 20,460,000 Interest Earned - 1,590,700 1,000,000 Total Projected Revenues $ 20,460,000 $ 1,590,700 $ 21,460,000 Operating Expenses: Capital Outlay $ 54,456,515 $ 5,217,686 $ 49,158,827 Transfers Out - 80,000 - Total Expenditures $ 54,456,515 $ 5,297,686 $ 49,158,827 Net Operating Surplus / (Deficit) $ (33,996,515) $ (3,706,986) $ (27,698,827) Beginning Fund Balance, September 30, 2025, estimated $ 36,767,565 Ending Fund Balance, September 30, 2026, estimated $ 9,068,738 For more information on MIMA Bond projects, please see the following list of projects and funding sources. Page 37 Proposed Budget (Draft for Council#5) – 2025.9.12  City of Gulfport Proposed Budget For the Fiscal Year Ending September 30, 2026 Capital Projects - MIMA Bond (107) Reconcilation from FY25 Budgeted Projects to FY26 Budgeted Projects Amount Total FY26 FY 25 Original FY25 Budget Actual FY25 Changed for this Budgeted Project Name Budget Amendments Expenditures Budget Amount INTERCONNECTING GULFPORT BUILD GRANT 24,456,515 - (39,965) - 24,416,550 HB1353 DFA MONEY FOR POOLE, CREOSOTE, AND DANI 3,500,000 - - - 3,500,000 WARD 1 ASPHALT PAVING 1,000,000 - (787,805) - 212,195 WARD 2 ASPHALT PAVING 1,000,000 - (487,698) - 512,302 WARD 3 ASPHALT PAVING 1,000,000 - - - 1,000,000 WARD 4 ASPHALT PAVING 1,000,000 - (725,291) - 274,709 WARD 5 ASPHALT PAVING 1,000,000 - (79,377) - 920,623 WARD 6 ASPHALT PAVING 1,000,000 - (976,646) - 23,354 WARD 7 ASPHALT PAVING 1,000,000 - (934,199) - 65,801 MIMA PAVING ENGINEERING COSTS - - (60,956) - (60,956) CONCRETE ROAD PAVING 16,000,000 - (1,205,751) - 14,794,249 CENTENNIAL FIELDS ROAD AND INFRASTRUCTURE 3,500,000 - - - 3,500,000 Total 54,456,515 - (5,297,688) - 49,158,827 Page 38 Proposed Budget (Draft for Council#5) – 2025.9.12  City of Gulfport Proposed Budget For the Fiscal Year Ending September 30, 2026 MIMA 2018 Use Tax Receipts Budgeted revenues and expenditures for the MIMA 2018 Use Tax Receipts Fund are below. City of Gulfport, MS Capital Projects - MIMA Use Tax Fund Proposed Budget For the Fiscal Year Ending September 30, 2026 FY2026 Proposed Original Budget Operating Revenues Use Tax $ 3,655,686 Grants (Federal, State, Local) 14,330,491 Interest Earned 350,000 Total Projected Revenues $ 18,335,491 Operating Expenses: Capital Outlay $ 18,972,369 Total Expenditures $ 18,972,369 Net Operating Surplus / (Deficit) $ (636,878) Beginning Fund Balance, September 30, 2025, estimated $ 12,476,140 Ending Fund Balance, September 30, 2026, estimated $ 11,839,262 For more information on MIMA Use Tax projects, please see the following list of projects and funding sources. These MIMA Use Tax capital outlay expenditures will be used to cover the City’s match on the MIMA-eligible projects. Page 39 Proposed Budget (Draft for Council#5) – 2025.9.12  City of Gulfport Proposed Budget For the Fiscal Year Ending September 30, 2026 Capital Projects - MIMA Use Tax (109) Reconcilation from FY25 Budgeted Projects to FY26 Budgeted Projects Total FY26 FY 25 Original FY25 Budget Actual FY25 Amount Changed Budgeted Project Name Budget Amendments Expenditures for this Budget Amount AIRPORT ROAD EXTENSION 5,000,000 - (55,820) - 4,944,180 WASHINGTON AVE WIDENING 3,500,000 - - - 3,500,000 DEDEAUX RD PHASE II WIDENING - HWY 605 to E of HWY 605 4,700,000 - (108,965) - 4,591,035 ONEAL THREE RIVERS WIDENING 550,000 - - - 550,000 OLD HWY 49 SIDEWALK 200,000 - - 200,000 400,000 LANDON ROAD WIDENING 5,575,000 - (2,687,846) - 2,887,154 SEAWAY ROAD PED PATH TO 3 RIVERS - - - 1,100,000 1,100,000 22ND ST - 22ND AVE DRAINAGE FY 26 - - - 600,000 600,000 2026 DRAINAGE MASTER PLAN UPDATE - - - 400,000 400,000 Total 19,525,000 - (2,852,631) 2,300,000 18,972,369 Page 40 Proposed Budget (Draft for Council#5) – 2025.9.12  City of Gulfport Proposed Budget For the Fiscal Year Ending September 30, 2026 Debt Service Funds Debt service funds record the accumulation of resources and the payment of principal, interest, and administrative fees on long-term debt obligations and certain lease/purchase contractual obligations. The City utilizes two debt service funds: • Debt Service – Ad Valorem • Debt Service – MIMA 2018 Use Tax Bond Note that debt service associated with water and sewer operations is accounted for within the Water and Sewer Fund. The debt services funds account for approximately 4% of the City’s budgeted revenues and approximately 3% of the City’s budgeted expenditures. Page 41 Proposed Budget (Draft for Council#5) – 2025.9.12  City of Gulfport Proposed Budget For the Fiscal Year Ending September 30, 2026 Debt Service – Ad Valorem Taxes Fund Budgeted revenues and expenditures for the Debt Service – Ad Valorem Taxes Fund are below. Revenue sources for this fund include ad valorem tax revenue and interest income. An ad valorem tax of 6.55 mills provides the majority of the revenue used to pay debt service. Expenditures for this fund include principal payments and bond redemptions, interest payments, and administrative fee payments. City of Gulfport, MS Debt Service - Ad Valorem Taxes Fund Proposed Budget For the Fiscal Year Ending September 30, 2026 FY2025 FY2026 Approved FY2025 Proposed Original Estimated Original Budget Actuals Budget Operating Revenues Property Taxes $ 6,000,000 $ 6,050,000 $ 6,250,000 Interest Earned 60,000 136,000 100,000 Miscellaneous / Other 100,000 - - Total Projected Revenues $ 6,160,000 $ 6,186,000 $ 6,350,000 Operating Expenses: Principal Payments $ 2,978,532 $ 3,065,532 $ 3,298,984 Interest Payments 2,941,113 2,810,105 3,077,391 Administrative Fees / Other 25,000 26,844 25,000 Total Expenditures $ 5,944,645 $ 5,902,481 $ 6,401,375 Net Operating Surplus / (Deficit) $ 215,355 $ 283,519 $ (51,375) Beginning Fund Balance, September 30, 2025, estimated $ 4,200,000 Ending Fund Balance, September 30, 2026, estimated $ 4,148,625 Page 42 Proposed Budget (Draft for Council#5) – 2025.9.12  City of Gulfport Proposed Budget For the Fiscal Year Ending September 30, 2026 Debt Service – MIMA Fund Budgeted revenues and expenditures for the Debt Service – MIMA 2018 Use Tax Bond Fund are below. Revenue sources for this fund include use tax receipts associated the Mississippi Infrastructure Modernization Act signed into law in 2018 and interest income. Expenditures for this fund include bond redemptions, interest payments, and administrative fee payments. City of Gulfport, MS Debt Service - MIMA 2018 Use Tax Fund Proposed Budget For the Fiscal Year Ending September 30, 2026 FY2025 FY2026 Approved FY2025 Proposed Original Estimated Original Budget Actuals Budget Operating Revenues Use Tax $ 3,500,000 $ 3,500,000 $ 3,500,000 Interest Earned 40,000 143,529 100,000 Total Projected Revenues $ 3,540,000 $ 3,643,529 $ 3,600,000 Operating Expenses: Principal Payments $ 1,785,000 $ 1,785,000 $ 1,875,000 Interest Payments 1,715,000 1,715,000 1,623,500 Administrative Fees / Other 25,000 20,542 25,000 Total Expenditures $ 3,525,000 $ 3,520,542 $ 3,523,500 Net Operating Surplus / (Deficit) $ 15,000 $ 122,987 $ 76,500 Beginning Fund Balance, September 30, 2025, estimated $ 1,777,000 Ending Fund Balance, September 30, 2026, estimated $ 1,853,500 Page 43 Proposed Budget (Draft for Council#5) – 2025.9.12  City of Gulfport Proposed Budget For the Fiscal Year Ending September 30, 2026 City of Gulfport, Mississippi Schedule of Debt Service Payments For the fiscal year ending September 30, 2026 Debt Service - Ad Valorem Fund Water and Sewer Fund Debt Service - MIMA Fund Date Series Description Principal Interest Principal Interest Principal Interest Total 10/1/2025 2014 Limited Obligation Bonds - 5,100.00 - - - - 5,100.00 11/1/2025 2014 General Obligation Refunding Bonds 554,900.00 26,594.88 105,100.00 5,036.37 - - 691,631.25 11/1/2025 2017 Special Obligation Bonds 1,580,000.00 704,750.00 - - - - 2,284,750.00 11/1/2025 2024 Tax Increment Financing Revenue Bonds - 51,394.25 - - - - 2,284,750.00 Nov Total 2,134,900.00 782,739.13 105,100.00 5,036.37 - - 2,976,381.25 12/1/2025 2014A General Obligation Bonds 960,000.00 130,100.00 840,000.00 113,837.50 - - 2,043,937.50 12/1/2025 2018 Capital Lease 78,979.44 13,166.83 - - - - 92,146.27 Dec Total 1,038,979.44 143,266.83 840,000.00 113,837.50 - - 2,136,083.77 1/1/2026 2015 General Obligation Water and Sewer Refunding Bonds - - - 24,862.50 - - 24,862.50 1/1/2026 2020A General Obligation Restructuring Bonds - 24,114.90 - 85,069.70 - - 109,184.60 1/1/2026 2020B Taxable General Obligation Restructuring Bonds - 83,686.17 - 66,131.08 - - 149,817.25 1/1/2026 2021 Taxable General Obligation Restructuring Bonds - 175,103.25 - 162,901.00 - - 338,004.25 Jan Total - 282,904.32 - 338,964.28 - - 621,868.60 3/1/2026 2021 Special Obligation Bonds - - - - - 811,825.00 811,825.00 4/1/2026 2014 Limited Obligation Bonds 25,000.00 5,100.00 - - - - 30,100.00 5/1/2026 2014 General Obligation Refunding Bonds - 18,271.38 - 3,459.87 - - 21,731.25 5/1/2026 2017 Special Obligation Bonds - 665,250.00 - - - - 665,250.00 5/1/2026 2024 Tax Increment Financing Revenue Bonds 97,000.00 51,394.25 - - - - 665,250.00 May Total 97,000.00 734,915.63 - 3,459.87 - - 686,981.25 6/1/2026 2014A General Obligation Bonds - 115,460.00 - 101,027.50 - - 216,487.50 7/1/2026 2015 General Obligation Water and Sewer Refunding Bonds - - 780,000.00 24,862.50 - - 804,862.50 7/1/2026 2020A General Obligation Restructuring Bonds 3,000.00 24,114.90 1,776,000.00 85,069.70 - - 1,888,184.60 7/1/2026 2020B Taxable General Obligation Restructuring Bonds 104.43 83,686.17 813,895.57 66,131.08 - - 963,817.25 7/1/2026 2021 Taxable General Obligation Restructuring Bonds - 175,103.25 - 162,901.00 - - 338,004.25 Jul Total 3,104.43 282,904.32 3,369,895.57 338,964.28 - - 3,994,868.60 9/1/2026 GRC Line of Credit Interest Payment - 725,000.00 - - - - 725,000.00 9/1/2026 2021 Special Obligation Bonds - - - - 1,875,000.00 811,825.00 2,686,825.00 Sep Total - 725,000.00 - - 1,875,000.00 811,825.00 3,411,825.00 Fiscal Year Total 3,298,983.87 3,077,390.23 4,314,995.57 901,289.80 1,875,000.00 1,623,650.00 15,091,309.47 Fiscal Year Fund Total 6,376,374.10 5,216,285.37 3,498,650.00 Debt service payment schedules do not align with the Council Meeting schedule. Issuing payments through the normal Accounts Payable docket approval process will require paying debt service payments well before the payment deadline and missing out on up to 20 days of interest earnings. For example, ten days interest earnings on the total debt service payments equals approximately $12,500. Issuing debt service payments early will cost the City lost interest earnings. The Finance Department advises that it is in the best interest of the financial well-being of the City to be able to issue payment from each of the above debt service payments up to five business days prior to each debt service payment due date instead of through the normal Accounts Payable docket approval process. By approving this original budget, the governing body for the City authorizes the Finance Department to issue special checks for each of the above debt service payments no earlier than five business days prior to the respective due date of each of the above debt service payments. Page 44 Proposed Budget (Draft for Council#5) – 2025.9.12  City of Gulfport Proposed Budget For the Fiscal Year Ending September 30, 2026 Internal Service Funds An internal service fund is a fund that primarily provides benefits, goods, or services to other funds, departments, or agencies of the government on a cost-reimbursement basis with the goal of “breaking-even” rather than make a profit. The City utilizes two internal service funds: • Employee Group Health Insurance • Claims Contingency The internal service funds account for approximately 4% of the City’s budgeted revenues and approximately 3% of the City’s budgeted expenditures. Page 45 Proposed Budget (Draft for Council#5) – 2025.9.12  City of Gulfport Proposed Budget For the Fiscal Year Ending September 30, 2026 Employee Group Health Insurance Budgeted revenues and expenditures for the Employee Group Health Fund are below. Revenue sources for this fund include employee and employer contributions toward employee health insurance costs and interest income. Expenditures for this fund include expenses associated with operating a self-insured group health fund such as consultant professional fees, specific stop-loss insurance premiums, and claim payments. Page 46 Proposed Budget (Draft for Council#5) – 2025.9.12  City of Gulfport Proposed Budget For the Fiscal Year Ending September 30, 2026 City of Gulfport, MS Internal Service - Employee Health Insurance Fund Proposed Budget For the Fiscal Year Ending September 30, 2026 FY2025 FY2026 Approved FY2025 Proposed Original Estimated Original Budget Actuals Budget Operating Revenues Contributions $ 5,150,000 $ 5,900,000 $ 6,290,000 Interest Earned 25,000 30,000 15,000 Miscellaneous / Other 130,000 460,000 150,000 Total Projected Revenues $ 5,305,000 $ 6,390,000 $ 6,455,000 Operating Expenses: Professional Fees $ 200,000 $ 143,000 $ 200,000 Specific stop-loss insurance premiums 500,000 515,000 575,000 Claims 4,600,000 5,950,000 5,950,000 Total Expenditures $ 5,300,000 $ 6,608,000 $ 6,725,000 Net Operating Surplus / (Deficit) $ 5,000 $ (218,000) $ (270,000) Beginning Fund Balance, September 30, 2025, estimated $ 500,000 Ending Fund Balance, September 30, 2026, estimated $ 230,000 Page 47 Proposed Budget (Draft for Council#5) – 2025.9.12  City of Gulfport Proposed Budget For the Fiscal Year Ending September 30, 2026 Claims Contingency Fund Budgeted revenues and expenditures for the Claims Contingency Fund are below. Revenue sources for this fund include billings to other departments / funds toward workers compensation costs, property casualty costs, and general liability costs, and interest income. Expenditures for this fund include costs associated with operating a self-insured fund, such as professional fees and claims payments. Page 48 Proposed Budget (Draft for Council#5) – 2025.9.12  City of Gulfport Proposed Budget For the Fiscal Year Ending September 30, 2026 City of Gulfport, MS Internal Service - Claims Contingency Fund Proposed Budget For the Fiscal Year Ending September 30, 2026 FY2025 FY2026 Approved FY2025 Proposed Original Estimated Original Budget Actuals Budget Operating Revenues Billings to Other Departments $ 3,375,000 $ 3,685,000 $ 3,712,100 Interest Earned 100,000 205,000 120,000 Total Projected Revenues $ 3,475,000 $ 3,890,000 $ 3,832,100 Operating Expenses: Workers Compensation: Professional fees $ 125,000 $ 71,000 $ 125,000 Specific stop-loss insurance premiums & Claims 587,000 863,000 845,000 Total Workers Compensation: 712,000 934,000 970,000 Casualty and General Liability: Professional fees $ 51,250 $ 9,250 $ 40,000 Specific stop-loss insurance premiums & Claims 2,700,000 2,701,000 1,370,000 Total Casualty and Gen Liab: $ 2,751,250 $ 2,710,250 $ 1,410,000 Total Expenditures 3,463,250 3,644,250 2,380,000 Net Operating Surplus / (Deficit) $ 11,750 $ 245,750 $ 1,452,100 Beginning Fund Balance, September 30, 2025, estimated $ 5,200,000 Transfer In/(Out) $ (1,500,000) Ending Fund Balance, September 30, 2026, estimated $ 5,152,100 Page 49 Proposed Budget (Draft for Council#5) – 2025.9.12  City of Gulfport Proposed Budget For the Fiscal Year Ending September 30, 2026 Conclusion On behalf of the Administration and the management team, thank you for your time and consideration. Please refer all questions and comments to the Chief Administrative Officer or the Director of Finance and Accounting. Page 50 Proposed Budget (Draft for Council#5) – 2025.9.12