Ocean Springs, school district report error found in millage calculation

The City of Ocean Springs and the Ocean Springs School District recently found an error in how the millage for the 2024-2025 school district was calculated, resulting in a shortfall of taxes that were to go to the district.

The total mills were set at 64.86 instead of 66.27, which resulted in a 1.41 shortfall. As a result of the city’s error, the tax rate for 2025 fiscal year is 1.41 mills lower than it was in previous years. This decrease caused an estimated $475,000 shortfall in the district’s debt service funds.

To correct the error, the debt service millage left out will be excluded from the tax rolls on a one-time basis.

Beginning in the 2026 fiscal year, the millage will return to the 66.27 rate so the school district can meet its financial commitments.

To address the $475,000 shortfall, the district will take out a loan, which will be repaid by adding 0.466 mills over the next three years. The overall tax impact is a net zero for the community, according to the city and school district.

The result of this error will affect the current taxpayer in the following ways:

1. 2024-2025 tax year: $14.10 reduction in taxes per $100,000 value home

2. Shortfall loan collection spread over 3 years

• 2025-2026: $4.70 collected per $100,000 value
• 2026-2027: $4.70 collected per $100,000 value
• 2027-2028: $4.70 collected per $100,000 value

This situation is not the result of an increased funding request from OSSD but was an error made by the City of Ocean Springs. The school district has not sought to raise taxes or increase the millage rate beyond what is necessary to maintain prior funding levels. This temporary adjustment will only cover what decreased for the current fiscal year and the tax impact remains net zero after four years.