Tuscaloosa Finance Committee Meeting - September 16, 2025
Tuscaloosa Finance Committee Meeting - September 16, 2025
The Finance Committee met on September 16, 2025, to approve routine disbursements and resolutions, discuss a proposed budget addendum for a one-time health insurance stipend for city employees, and review budget proposals for Elevate capital projects, the airport, and municipal court.
Consent Calendar
- Minutes Approval: Minutes from the previous meeting were adopted by voice vote.
- District 6 Improvement Fund Disbursement: $1,000 approved for the Crossroads Angel Tree Program, which provides Christmas gifts for children of incarcerated parents.
- Police and Fire Supplemental Pension Insurance Renewal: Resolution authorizing binding coverage and premium payment for FY26 (corrected from FY25 in the materials) at a premium of $5,712, unchanged from last year. Approved by voice vote.
- Appalachian Regional Commission (ARC) Grant for Saban Center: Authorization to reapply for a $1 million grant (50/50 match) for educational classrooms and labs. The city's match is already budgeted. The previous application was denied due to insufficient focus on the specific space. Approved by voice vote.
- Agency Funding Agreement with PARA: $246,350 from the tourism capital fund for the Tuscaloosa Parks Lighting Project, with the contingency balance in that fund projected at about $420,000 by year-end. Approved by voice vote.
Discussion Items
- Health Insurance Stipend Addendum: The mayor presented a proposal for a one-time supplemental pay to offset the impact of the 8.3% health insurance increase. Approximately 146 senior-ranked police and fire employees (topped out in grade) faced a net pay reduction; the stipend addresses this across all employees. Non-public safety employees (e.g., crew workers, custodians) would receive $250; public safety employees $500. The total cost is $425,000 for the general fund and $50,000 for the water and sewer fund, reducing general fund contingency to $712,000. The stipend would be issued as a lump sum around Christmas, treated as regular wages (taxable). Staff noted that future occurrences are unlikely due to the upcoming RSA pension conversion (employee contribution drop from 13% to 8.5%) and expected retirements. The addendum is intended to be included in the final budget resolution at the next council meeting.
- Elevate Budget Overview: Total Elevate revenues for FY26 are projected at $37.6 million ($27 million from the one-cent sales tax, $4.3 million from Saban Center capital campaign, $6.2 million carryforward). After the $5 million environmental service fee transfer, net revenue is $32 million. Major expenditures include public safety set-aside ($7 million), operations and maintenance set-aside ($3.3 million), debt service on prior bonds (~$9 million), and agency funding (~$1.8 million for transit, dual enrollment, pre-K, summer learning, Athletic Excellence Fund). Contingency is $5.2 million. Upcoming projects include Freeman Park and Pool ($250,000), University Boulevard corridor, Greensboro Avenue (100% design, construction planned after UA graduation in May 2026), and MLK Phase III (near bid, funded via bond). Funding for NOAA's Arc 2.0 projects is anticipated via line of credit (1-1.5 months to execute) or bond issuance. The committee discussed the need to sequence financing for several large projects in FY26.
- Airport Budget: The airport's general fund operating budget is $1.029 million, with current revenues of $550,000 (hangar leases, fees) offsetting the subsidy. The subsidy has been reduced by approximately 17% annually over the last four years. A rent study recommends updates to fees and leases that could generate an additional $300,000, but negotiations (especially with FBOs controlling 70% of leased acreage) remain a challenge. Goal is to become fully self-sustaining; the council must decide on the aggressiveness of cost recovery.
- Municipal Court Budget: Operating budget is level-funded at $1.5 million, mostly salaries and benefits. A new court referral program (alternative sentencing) has been brought in-house, with two new staff hired. The court is self-sustaining from fines and court costs, though most collection fees are remitted to the state (including approximately $300,000 annually to the district attorney's office). No major challenges noted.
Key Outcomes
- All consent calendar items approved unanimously by voice vote.
- The health insurance stipend addendum will be presented to the full council as part of the FY26 budget resolution at the next council meeting (week of September 22).
- The finance committee plans to pass forward its version of the mayor's budget recommendation at next week's meeting.
- Staff will provide a breakdown of state allocations from municipal court revenues to the committee.
- Motion to adjourn was seconded and passed.
Meeting Transcript
That will entertain. Motion. Raven, are you good? Yep. Um second. All in favor say aye. Aye. Okay. Minutes are adopted. Item number one under new business. Um approval of disbursement from District 6 improvement funds. The crossroad angel tree program, total thousand bucks. Yes, sir. What this church does, they provide Christmas for uh children whose parents are uh in county jail, state prison, federal prison. They're Tuscaloosa kids whose parents are incarcerated, and they do Christmas for them. They do a good job. Okay. Motion. Mr. Holmes, we're we're cleared on that, check. Yes, sir. All in favor say aye. Aye. Item is approved. Uh item number two, Mr. Holmes resolution authorizing binding coverage and payment of premium for police and fire supplemental pension insurance. Yes, sir. This is uh this says for FY25. Uh it's probably just a type of um the I'll I'll double check it. This is our renewal for our police and fire supplemental pension insurance. This is our uh insurance that covers that covers uh Miss Standards of folks that have to deal with this. Uh the renewal, the premium is actually the same as it was last year, which is uh five thousand seven hundred and twelve dollars. But we are insuring for FY26, correct? We're insuring for the next year. We're renewing for an additional year. It's not so in the minutes, Picky in the minutes. Make sure you note that okay. Questions, comments? Motion second. All in favor say aye. Aye, okay. Item is approved. Uh item number three, uh, Miss Standridge. Appalachian Regional Commission grant. Yes, good afternoon, council. Good afternoon, um, a couple of months ago we requested to apply for two ARC grants for the Sabin Center. Both were a million dollars. Um, one of them was uh denied to move forward. Um we have gotten some feedback from the ARC and from ADECA on the reasons why we were denied to move forward, and we have tweaked the grant and we're requesting to reapply for that exact same one. Um this is going to be for um the uh some educational classroom and labs um within the savings center.
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