OCEAN SPRINGS, MS — The Ocean Springs School Board is demanding that the city pay back every cent — and then some — for a costly tax miscalculation that originated under the leadership of now-retired City Clerk Patty Gaston.
Nearly eight months after a miscalculation shorted the school district’s debt service fund by nearly half a million dollars, the School Board has now formally requested the city pay back every penny — plus interest, legal fees, and any other costs tied to the fallout.
In a letter dated July 24 and included in the consent agenda for the upcoming August 5 Board of Aldermen meeting, Superintendent Michael Lindsey stated that the city’s error in calculating the 2024–2025 property tax millage resulted in the school district receiving approximately $430,000 less than it had legally requested. That figure is slightly lower than the $475,000 shortfall initially cited in a joint press release issued by the city and district last December.
“This shortfall has had a direct and material impact on the district’s Debt Service,” Lindsey wrote, noting that the district is now in the process of securing a shortfall loan — a move that comes with unavoidable additional costs.
The school district is asking the city to reimburse not just the lost funds, but also:
- Attorney fees
- Interest payments
- Bank or administrative service charges
- And “any other related costs” stemming from the shortfall loan.
The shortfall occurred when the city applied the wrong millage rate to the 2024–2025 tax rolls. Instead of the legally authorized 66.27 mills, the city levied only 64.86 mills for a difference of 1.41 mills. For taxpayers, this meant a temporary reduction of $14.10 per $100,000 of assessed property value. For the school district, it meant not having enough money to cover its debt service obligations.
In December, officials from both the city and the district attempted to frame the error as an isolated incident with minimal long-term harm, describing it as a one-time miscalculation that would be corrected in future years. To plug the immediate budget gap, the district committed to taking out a loan and spreading repayment over the next three years via a temporary 0.466-mill addition to local tax bills — about $4.70 annually per $100,000 in property value.
But as Superintendent Lindsey’s letter makes clear, the school board is no longer content to shoulder those costs on its own. “This corrective measure, while necessary, comes with additional costs… which the district would not have incurred had the original tax levy been calculated accurately,” he wrote.
The letter also emphasizes that the request is being made “as allowed by MS Code and MS State Law,” though it does not cite specific statutes. Lindsey expressed appreciation for the city’s professionalism so far but asked Mayor Bobby Cox to arrange a time to discuss the matter further.
City Silent on Accountability Measures
While the school board appears to be taking proactive steps to seek reimbursement, it remains unclear whether the City of Ocean Springs has conducted any internal review to determine how the mistake occurred — or whether anyone has been held accountable. Public records requests revealed no corrective policy changes or disciplinary actions announced since the error was disclosed.
Former City Clerk Gaston officially retired last month. During the July 15 Board of Aldermen meeting, the city honored Gaston for 22 years of public service.
The Board of Aldermen is expected to acknowledge receipt of the school district’s reimbursement request during its August 5 meeting. Whether the city intends to honor the full request, partially reimburse the costs, or dispute the claims remains to be seen.
I know exactly what happened. Patty miscalculated based on the annexation. She told me that and was terrified og getting folired. But of course the Board covered for her.