The city budget includes $1 million for ongoing capital and operational expenses for the Tivoli Theatre and Memorial Auditorium that will be under new management.
Brent Goldberg, city chief operating officer, said that includes $750,000 for operations and $250,000 for capital.
He said the city "expects to flip flop those items in four or five years" as the new Tivoli Foundation gets on its feet.
Mr. Goldberg said the city plans to continue funding the new entertainment venues for about five years, then will contribute "as needed" afterward.
It is hoped that the new foundation will be able to eventually operate without city help, but Mr. Goldberg said it is starting on July 1 without funds of its own.
The foundation has advertised for an executive director and taken proposals for a management firm.
Mr. Goldberg said the foundation is not yet an approved 501 (c) (3) entity, but is working on getting that tax status.