Wildwood staff recommend reserve policy review as council defers stormwater/parks tax and advances capital prioritization process

City finance staff reported to the Admin and Public Works Committee that Wildwood’s unrestricted general‑fund balance was unusually high at about 155 percent of annual operating expenditures at the end of 2024. The department recommended the council consider a formal reserve policy that sets a target and a floor—staff discussed a potential “Goldilocks zone” approach (example targets mentioned: 75% target with a 50% floor) while noting national guidance from the Government Finance Officers Association (GFOA) typically suggests a minimum of about two months (≈16.7%) of operating expenditures.

Finance staff (Mister Lee) explained the makeup of Wildwood revenue streams, including the city’s reliance on sales taxes and distributions from St. Louis County and the relative stability of utility-tax receipts. Staff noted the city has little long‑term debt and that much of the current unrestricted balance reflects funds accumulated over many years and unspent deferred maintenance liabilities. Staff said the city’s existing contingency (25% of operating expenditures) is already set aside; the larger unrestricted balance gives the city roughly a year‑and‑a‑half of operating runway if revenues were to stop, the presentation said.

Committee members debated whether to use reserves now to address deferred maintenance or preserve a larger cushion to hedge against economic downturn. Council member Mabry urged caution, calling for operating experience at lower reserve levels before reducing the balance, while others suggested setting a formal policy and a process to identify eligible capital projects that would responsibly use reserves without undermining fiscal stability.

The committee then discussed a possible ballot question to create a stormwater-and-parks sales tax. Staff explained the ballot mechanics (a council vote to place language on the ballot, the need for a separate fund if the tax passes) and provided order-of-magnitude revenue estimates: a 0.5% sales tax in Wildwood would yield roughly $2.8 million annually; a 0.25% tax would yield about $1.4 million. Staff also estimated the election cost of putting a question on a ballot at roughly $25,000 for a smaller election and perhaps up to $50,000 or more for a general election, depending on the county election office and other concurrent ballot items.

After discussion, the committee voted to pause the stormwater/parks tax initiative to allow additional outreach and analysis. The motion to table further immediate action on a ballot measure was made and seconded and passed by voice vote.

Separately, staff presented a revised, criteria‑weighted capital‑priority ranking system for the capital improvement sales-tax fund. The system weights factors such as master‑plan alignment, public‑safety risk, cost and maintenance impact; staff said the matrix will be used to produce a tiered list of projects and to show which projects are funded and which remain unfunded. The committee approved proceeding with the updated prioritization process and asked staff to produce the proposed 2026 projects and an unfunded needs list for the next meeting.

Committee members also discussed the city’s capital needs (examples cited: Main Street work, building repairs, retention/detention basins and park maintenance) and urged staff to present clearer thresholds so council members and the public can see what projects meet funding criteria and which do not.

What happens next: staff will return with recommended reserve-policy language options, a clearer 2026 capital proposed list and the unfunded projects list, and will coordinate any outreach or survey questions if the council later decides to explore a voter measure.