Rampant development, especially in the Villages of Southern Oaks, has meant an excess of cash for the city of Wildwood.
The city will pour the estimated excess of $3.4 million into road and construction projects.
At a special meeting Monday, a report on the city’s finances by assistant finance officer Lynzey McClellan revealed that Wildwood is expected to end the current fiscal year next Sept. 30 with a cash balance of about $6.4 million, which is $3.4 million higher than the normal amount needed for reserve funds.
The normal year-end reserve is recommended to be about 25 percent of the city’s $11.9-million operating budget.
The extra money will help finance six projects that eventually will cost about $9.4 million and avoid borrowing money for them this year.
Projects include $3.4 million for the municipal services complex and $350,000 for replacement of the heating and air conditioning system at city hall. Road projects include $3.2 million for Clay Drain Road and Signature Drive; $880,000 for Jackson Street; $855,000 for Barwick Street; and $774,000 for Pleasantdale Drive.
McClellan reported that revenues at the end of the 2019-20 fiscal year were 5 percent over while expenditures were 6 percent under budgeted amounts. Significant revenue increases were in utility and franchise fees as well as charges for development services.
Despite two major sewer and water extension projects, Wildwood’s utility fund is expected to end the current fiscal year with a $3.6-million cash reserve or about 58 percent of the operating budget for utilities. The recommended amount is about 50 percent.
Commissioners also approved a resolution that defines how the city handles asset management and depreciation.