Tuscaloosa leaders outline Elevate bond plan and projected costs for new Savings Center

Mayor Mac presented the City of Tuscaloosa's capital-projects budget called "Elevate," outlining a proposed multi-year bond issuance that would fund projects including the Savings Center, a pickleball center, the University Boulevard corridor and Odom Park.

The plan sets aside 15% of the Elevate sales-and-use tax for operation and maintenance (O&M) of Elevate facilities, Mayor Mac said; that allocation and a separate River District Fund would help pay recurring repair, maintenance and operational subsidies for new facilities. He said the city may recommend increasing the O&M set-aside to 16% or 17% in later years to address rising costs.

The nut graf: the council heard detailed projections for bonds and operating costs and asked city staff about how state contributions and foundation fundraising would interact with the city's budgeted O&M obligations. Council members pressed for clarity on who will manage state funds and how long the city's seed funding for the Savings Center foundation will continue.

City staff circulated spreadsheets that showed three bond tables (prior 2020 and 2022 issuances and a proposed fiscal-2026 issuance) and a projected fiscal plan through fiscal 2033. The fiscal-2026 bond proposal would include the Savings Center, pickleball center, University Boulevard corridor and Odom Park. Officials said some completed projects (Odom Park) were paid from cash and will be reimbursed from the bond issue.

Mayor Mac described the Elevate O&M fund as “one of the most important aspects” of the budget and said the city dedicates 15% of the sales-and-use tax toward operation and maintenance. He added the projection shows the fund balance falling by fiscal 2028–2033 under current assumptions, and the city may recommend raising the percentage to maintain the fund in later years.

The presentation included a River District Fund (formerly the amphitheater fund) that combines lodging-tax revenue and portions of the Elevate O&M allocation to support the Mercedes‑Benz Amphitheater, River Market and River Walk. Staff proposed multi-year repairs and upgrades for the amphitheater, including a planned capital spend of $2 million in fiscal 2026 and additional amounts in subsequent years to be financed in the bond package.

For the Savings Center, staff provided a consultant’s projection of maintenance and operating costs and an operational subsidy estimate. The materials presented project fiscal 2025 revenues of $4.3 million and expenditures of $2.1 million for the combined River District/Elevate funds, leaving a carryover; for fiscal 2027 — the year the Savings Center is expected to open — staff projected revenues of $6.8 million and expenditures of $4.3 million, with a carryover. The consultant’s estimate shown in the packet projects a city subsidy for the Savings Center’s operations of about $1,037,000 in fiscal 2027.

Council members asked how the state’s planned $25 million contribution for the state’s STEM center would be managed and whether those dollars would offset the city’s O&M liability for the Savings Center. The mayor and staff said the state funding would be for state-specified services and that the city’s O&M figures reflect only the city’s share; specific agreements and language for passing or managing state funds still must be worked out with the foundation and other partners.

Council members also questioned how long the city’s seed contributions to the Savings Center Foundation would continue now that the foundation has raised substantial philanthropic commitments. Staff said the final year of seed funding in the council’s plan is fiscal 2026; thereafter fundraising and earned revenues are expected to be reflected in the foundation’s and facility’s operating results, although staff cautioned that operational fundraising is distinct from capital fundraising for exhibits and long-term operations.

Officials and consultants noted that early years of operations sometimes show a “spike” in maintenance costs as systems are fine-tuned; staff said these projections come from benchmarks for conference centers and museums and will be refined as bids and an operational staffing plan are completed. Staff recommended the council meet with the Savings Center Foundation leadership for additional detail; the mayor offered to place that discussion on a future agenda for a deeper briefing.

Ending: Council members did not take a final vote on bond issuance at this presentation; staff said the bond sale is market dependent and tentatively targeted for midsummer, likely the week after July 4. Staff emphasized that figures are projections and will be refined with bids, operational plans and finalized funding agreements before any final financing or contractual commitments are made.