Ocean Springs board rejects proposed 1-mill property tax increase, holds rate flat
OCEAN SPRINGS — The Ocean Springs Board of Aldermen has voted down a proposed 1-mill increase in the city's property tax rate, adopting a fiscal year 2027 budget that holds the general fund millage rate flat.
The increase was put to the board at a public hearing on the FY2027 budget, held Tuesday at City Hall. Presenting the proposal, City Clerk Christine Millard told the board the change would be modest for most homeowners. "For example, a taxpayer with a home value of $200,000 would pay about $20 more dollars a year," she said.
Millard said the proposed increase was driven by a mandated rise in the city's contribution to the state Public Employees' Retirement System, and by a decline in sales tax revenue.
Following public comment and objections from aldermen, the board declined to adopt the increase and instead kept the general fund millage rate unchanged at 23.05 mills. The budget adopted by the board totals about $19.37 million.
Ward One Alderman Steve Tillis urged the mayor and board to look at the city's own spending before turning to taxpayers. "I would urge the mayor and this board to challenge every department head to identify at least 5% potential savings within their department's expenditures," he said.
Tillis added that the city should negotiate harder with vendors and review its vehicle fleet before asking residents for more money, and said he did not believe the city had "yet done enough to examine our own spending."
Tillis also noted that the property tax proposal was not the only new cost residents were being asked to consider, pointing to a separate discussion of a small increase in the city's water and sewer rates.
Ocean Springs is one of a number of Mississippi cities weighing property tax increases this budget season as required PERS contributions rise and sales tax collections soften.