BILOXI, MS (WLOX) - Biloxi Mayor AJ Holloway has vetoed the $53 million budget put forward by the Biloxi City Council. In a statement on the city's website, Holloway says he made the decision because the council only left $56,000 in the city's year end spending reserve. That money covers unforeseen costs throughout the year.
Holloway says such a low amount would put the city's credit rating at risk, which would force the city to pay more interest for any money borrowed in the future.
Holloway has made two recommendations that would allow the council to increase that spending reserve to $2 million. They include shifting money out of a long-term debt fund, and using funds from a $14 million bond to cover street projects.
Council President Kenny Glavan says they will take the issue up at their next meeting. He says he has some concerns about borrowing from the debt fund.
In a statement on his Facebook page, Glavan said, "We must match our spending with our revenue sources, and the priority should be on increasing economic development, paying down our debt and maintaining services for our citizens so we can have the means to operate sufficiently."
Glavan says he will keep an open mind to whatever information the mayor presents to the council at the next meeting.