Why do I have stray bullet from

wp_list_categories() starts its output with a <li>, so you don’t have to write it yourself. What you get (check your source code) is:

<ul>
    <li>
    <li class="categories"><strong>Categories</strong>
        <ul>
            <li class="cat-item cat-item-6"><a href="http://shs.merms.info/category/article/" title="View all posts filed under Article">Article</a></li> 
            <li class="cat-item cat-item-3"><a href="http://shs.merms.info/category/awards/" title="View all posts filed under Awards">Awards</a></li>
            <!-- More items -->
        </ul>
    </li>
    </li>
</ul>

<li><li> is invalid and gets converted to <li></li><li>, giving you an extra bullet. You should remove the <li>...</li> around your call to wp_list_categories().

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