Tuscaloosa Finance Committee Meeting – August 12, 2025: Budget Revisions, Insurance Approvals, and Budget Outlook
Tuscaloosa Finance Committee Meeting – August 12, 2025
The City of Tuscaloosa Finance Committee met on August 12, 2025, to consider several budget revisions, insurance contract renewals, and a discussion on the upcoming Fiscal Year 2026 budget. All action items were approved unanimously.
Consent Calendar
- No consent calendar was identified; all items were considered individually.
Public Comments & Testimony
- No public comments were made.
Discussion Items
- General Fund Budget Revision #15 (Insurance Proceeds for Fire Department): The committee approved a $63,000 budget revision to recognize insurance proceeds received from the Pet Boys fire. Fire Chief Delk explained that 12 sets of turnout gear (protective clothing) were damaged beyond cleaning, and the insurance funds will be used to purchase a replacement vehicle. The gear was destroyed when firefighters responded to the fire at the Pet Boys facility, which involved burning rubber products.
- Water and Sewer Reserve Budget Revision #7: The committee approved a $7 million budget revision to fund capital projects from the 10-year plan, including: Mercedes Force Main lift stations ($1.2 million), Fletcher phase 3 improvements ($2.3 million), Hillcrest Tank rehabilitation ($1.2 million), outfall line replacement ($1.7 million), sewer expansion at the airport runway ($400,000), and Line A raw water main repair ($150,000). These projects are funded by rate increases over the past four years.
- Contract with Warren Averett for PL 113-2 Audit Services: The committee approved $25,000 for internal audit services required by the 2013 CDBG disaster recovery grant. The contract is at the same price as the previous three years, and the requirement will sunset once the grant is closed out.
- Stop Loss Insurance Coverage from Highmark for FY26: The committee approved a resolution to select Highmark for annual stop loss coverage (insurance that protects the city’s health plan against catastrophic claims). The current policy has a $300,000 individual deductible; the new option (Option 1) increases the deductible slightly based on expected claim patterns. The rate per employee contract per month is currently $49.45; the renewal rate would be $69.23 under the same terms, but the city chose a higher deductible option to lower the cost. The contract covers approximately 1,170 contracts (around 300 employees plus dependents).
- Helicopter Insurance Coverage (Chair Discussion): The committee approved a $7,600 policy to extend helicopter insurance through January 1, 2026, as the city sunsets its helicopter unit by December 31, 2025. The previous full-year policy cost $52,000. This was the last discussion on helicopter insurance for the city.
- FY26 Budget Preview and Process: Mayor Walt Maddox and Finance Director Andridge Standridge provided an overview of the upcoming budget. The mayor described it as “plain vanilla” and “boring” compared to recent years, but emphasized it is focused on fiscal discipline, employee investment, and the RSA (Retirement Systems of Alabama) conversion. Revenues are marginally higher than anticipated a month ago. Key elements include:
- Continued funding for the RSA conversion ($4 million per year).
- Investment in AI opportunities and overall security.
- Capital projects at Freeman Park, including the pool (timeline to be accelerated).
- No major new initiatives, but a focus on maintaining services. The mayor and finance director noted that the budget avoids significant cuts and builds on five years of methodical planning (public safety fund, capital fund, water/sewer reserves).
- The committee discussed the schedule for agency funding reviews and work sessions. Council members expressed interest in holding one or two morning work sessions to dive into agency budgets, particularly larger agencies like the Tuscaloosa Public Library and the Arts Council (noting that Para now no longer funds the Arts Council). The mayor cautioned against uncorking too many agency requests, but agreed to focus on the major ones. The final budget must be passed by September 30, 2025, with the first reading likely on September 22.
Key Outcomes
- All four action items (budget revisions, audit contract, stop loss insurance, helicopter insurance) were approved unanimously by voice vote (motion, second, all ayes).
- The committee directed staff to prepare a resolution for the helicopter insurance extension for the next council meeting.
- The committee will schedule at least one work session in September to review agency funding and other budget details. The mayor will present the proposed FY26 budget at the next regular meeting (week of August 18).
- Council members were encouraged to identify any specific agencies they wish to invite for financial discussions during the budget process.
Meeting Transcript
Motion to approve, Mr. Chairman. Members, if you would take a look at the minutes and there's a motion. Motion to approve, Mr. Chairman. All in favor say aye. Aye. Okay. Minutes are adopted. Ms. Stanford's item number one under new business general budget revision number 15. Yes, thank you, Council. This first uh general fund budget revision is a request to use insurance proceeds by the fire department. Um they had a few um uniforms that were damaged in the um in a fire event, and so we have gotten insurance proceeds from that. They then repurchase those uniforms from their regular general fund budget operating accounts, and so they're requesting to use the insurance proceeds in the purchase of a vehicle that needs to be replaced. Um, the amount is $63,000 that we are requesting to take out to to recognize an insurance proceeds and put in their equipment line item. So they would have to purchase that vehicle in the next couple of months. Chief Delk is here to talk about any operational decisions that go into that. Sure, Chief. Uh tell us what uniforms cost $63,000. These are actually uh they could be termed uniforms. This is actually turnout gear. So not the uniforms that you're probably thinking about, the dress shirts and stuff like that. This is protective gear. So thermal layer, um moisture layer, and so these are pretty expensive pieces, boots, things like that that were ruined by the products that were burned. It was the pet boys fire that this was ruined in. And so I think they had gone out of business. There was a little, you know, there was some stuff out there, whether it was gonna insurance was gonna pay these or not, because we did have to absorb the cost of those guys that responded out there in the turnout gear that was that was ruined. We attempted to clean some of it, you can you it was past the point of cleaning. How many uniforms did that go? Uh there was 12 sets. Oh yes, ma'am. Okay, okay. So that was and that was from all the first two companies that were there that made entry on that building and tried to try to do the best they can. I remember reading the report uh how these were full rubber product, you know. Yeah, think about all the stuff that would be in a in a mechanic shop that was burning that that was exposed to, and so we didn't want to put our guys in, and you don't ever want to put guys that that that exposures in their gear into another environment like that. Gotcha. All right, thank any other questions, comments? Not is there a motion? Motion all in favor say aye. Aye, item is approved. Item number two, water and sewer reserve for future improvements, budget revision number seven. This is the um the seven million dollars in the 10-year plan uh projects discussion that we had last week for uh the water and sewer but uh water and sewer budget adoption. So if you'll recall, there were seven uh there's seven million dollars in the tenure plan escrow amount that is on top of what we are uh needing to pay for debt service from the uh I can I can't pull words today. Um from the rate increases that we've done over the past four years, those projects are the Mercedes Force Main list stations for 1.2 million, the phase three improvements for um Fletcher at 2.3 million, the Hillcrest Tank Rehabilitation at 1.2 million, the outfall line replacement at 1.7 million, um, expansion of the sewer and sewer betterment at the airport runway for 400,000, and the line A raw water main repair at 150,000. All of that totals up to the seven million that was presented last week. Okay, as we discussed and we went through the machinations of how that seven million is arrived at from rate increases and questions or comments. Which which I couldn't pull the words today. I'm so sorry. I couldn't hear it again.
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