Webster Groves council adopts change to fund‑balance target, lowering floor from 50% to 35%

Webster Groves — The Webster Groves City Council voted unanimously June 3 to adopt a revised weighted fund‑balance policy that lowers the city’s reserve target from 50% of planned general‑fund expenditures (about six months) to 35% (about four months).

City Finance Director Gregory Donovan told the council the policy change is intended to give the city “greater flexibility” to consider one‑time capital projects while keeping a multi‑month cushion to smooth cash flow and respond to emergencies. “My recommendation is that we can take it down from a 50%, which is 6 months, to 35%, which is about 4 months,” Donovan said during a council work session.

Donovan framed the change against guidance from the Government Finance Officers Association and the city’s recent revenue performance. He said the GFOA recommends keeping at least two months of planned…