Tuscaloosa City Council Meeting: Budget and Finance Actions - September 22, 2026

The City Council met on September 22, 2026, to consider a lengthy agenda dominated by budget revisions, fund disbursements, and the adoption of the Fiscal Year 2027 budget. The meeting began with routine approvals and progressed through a series of new business items, budget revisions, and a detailed discussion of a finance committee's cost-savings recommendations. All items were approved by voice vote unless otherwise noted. The council debated the use of projected savings from unfilled police positions and whether to fund certain operations department positions, ultimately deferring some decisions to a later meeting.

Consent Calendar (Routine Approvals)

• Item 1: Disbursement of $2,000 from District 2 improvement funds to Child Abuse Prevention Services, approved.
• Item 2: Disbursement of $1,000 from District 2 improvement funds to the Civil Rights Foundation, approved.
• Item 4: Disbursement of $2,500 from District 6 improvement funds for special needs children, approved.
• Item 6: Authorization to execute an engagement letter with Warren Averett for a PL 113 internal audit at $13,000, paid by grant, approved.
• Item 8: Transfer of $34,100 for a TPD motorcycle and creation of street light expenses for Covington Way and Cedar Forest, recognized revenue and expense, approved.
• Item 9 & 10: Water and sewer budget revision transferring $50,000 from operating fund to the RFFI for a lateral assistance program and receiving it in the RFFI, approved.
• Item 11: Fiscal year 2026 Elevate budget revision number 6 (cleanup of revenue and expense adjustments), approved.
• Item 13: Amendment to Exhibit D of the city pay plan to provide a COLA for public safety employees, approved.
• Item 14: Amendment to city code increasing solid waste collection service charges by $2 per month, approved.
• Item 15: Motion to withdraw item 15 (the original solid waste increase item) approved.
• Item 18: Opioid settlement funding for District Attorney's office ($250,000) and Phoenix House ($150,000), approved.
• Item 19: Other agency funding contracts for FY27, approved.
• Item 20: Transfer of $300,000 to the General Fund facility renewal fund, approved.
• Item 21: Transfer of equipment purchase funds to the Reserve for Future Improvements (RFFI) for various departments (CFG $351,000; ESD $1.25 million; City Engineer $100,000; Public Works $1.6 million; Urban Development $100,000), approved.
• Item 23: Transfer of $300,000 to the water and sewer facility renewal fund, approved.
• Item 24: Adoption of the water and sewer RFFI budget for FY27, transferring $12,507,054 for the ten-year capital plan, approved.

Discussion Items

• Item 3 (Busby): Disbursement of $10,000 from District 4 improvement funds for iron benches at Shelby Park. A council member questioned the availability of funds; staff confirmed a budget revision was included. Approved.
• Item 5 (JAG Grant): Chief Bagents presented an application for the FY26 Edward Byrne Memorial Justice Assistance Grant ($75,494 total; city share $61,948; county share $13,546) to purchase two motorcycles and mobile data units. Council members asked about motorcycle costs ($35,000 each) and MDU definition. Approved.
• Item 7 (2026 Budget Revision 21): Ms. Standridge detailed three parts: (A) using insurance proceeds from a wrecked TPD motorcycle to transfer to RFFI; (B) using insurance proceeds ($4,871) to repair a CFG IT vehicle; (C) activating prior-year savings for District 2 ($3,000) and District 4 ($1,000) improvement funds. Approved.
• Finance Committee Recommendations: Councilman Busby presented five recommendations from the finance committee:
  1. Isolate expenses for the new public safety department in a visible budget section.
  2. Keep the Office of Operations FY27 budget at FY26 level except for normal increases (health insurance, COLA, step increases, pension).
  3. Reduce water and sewer administration outside services increase from $250,000 to $50,000 (keeping FY26 level).
  4. Reduce the number of funded-but-unfilled TPD positions from 22 to 11, with the saved salary ($1.2 million) placed in an escrow account that TPD could access if hiring succeeds.
  5. Leave the tourism capital fund structure unchanged. The cumulative savings were estimated at $2.4 million. Councilman Busby proposed these savings be used to reduce employee health insurance premiums. Councilman Fail suggested a one-time bonus instead of premium reductions. The council also discussed the Office of Operations positions, specifically two web services positions that are currently in StratCom and proposed to be transferred to Operations. The mayor and staff assured that positions would not be filled until the council approves. The council agreed to defer the Office of Operations decision and to escrow the police savings, deciding later how to use the funds.
• Item 12 (Elevate Budget Revision): Ms. Standridge proposed moving $500,000 from the Greensboro Avenue Streetscape project (which came in under bid) to the Project Warrior line item. Approved.
• Item 16 (Adoption of FY27 General Fund Budget): After extensive debate on whether to amend the budget immediately or pass it as-is with a promise to amend later, the council voted to adopt the budget as presented, with the understanding that the finance committee's recommended changes would be implemented via a budget revision on October 6. The mayor gave his word that no positions in dispute (Office of Operations) would be hired before the revision. The motion to adopt passed.
• Item 17 (Adoption of FY27 Elevate Fund Budget): The elevate budget for FY27 was adopted as presented, including tax projections, savings center donations, and set-asides. Approved.
• Item 22 (Water and Sewer Fund Budget for FY27): The council adopted the budget as presented except for the $200,000 increase for outside services (proposed by finance committee recommendation). A motion to adopt the budget with a $200,000 reduction in outside services passed. Staff was directed to provide correct wording for the duplicate item on the council agenda.

Key Outcomes

• All items on the agenda were approved, with item 15 (solid waste increase original version) withdrawn and item 16 and 22 amended as described.
• The council adopted the FY27 General Fund budget, the Elevate Fund budget, the Water and Sewer Fund budget (with a $200,000 reduction in outside services), and the Water and Sewer RFFI budget.
• The finance committee's recommendations were accepted in principle: the police position escrow will be established; the Office of Operations budget level will be revisited in two weeks; the water and sewer outside services increase was denied; the tourism capital fund remains unchanged; and public safety department expenses will be isolated.
• Savings of up to $2.4 million from the police positions and other reductions will be escrowed and later allocated, with a decision on whether to use for health insurance premiums, a one-time employee bonus, or capital projects deferred to a future meeting.