St. James City Administrator Leeann DeMouche briefed the St. James City Council on the proposed budget for fiscal year 2027 during an Aug. 10 retreat.

The budget, which begins on Oct. 1, and ends on Sept. 30, 2027, acts as an outline for the city’s financial plan for the coming fiscal year. During the budget retreat, DeMouche presented the proposed budget to council members, who are expected to officially approve the document at the Sept. 14 city council meeting, before fiscal year 2027 starts.

At the retreat, DeMouche gave an overall assessment of St. James’ economic health and said that the city’s finances and economy were in good shape.

“The overall economic outlook of St. James is positively optimistic,” DeMouche said. “Our financial overview reflects resilient fiscal performance.”

According to DeMouche, the city’s housing market is expected to grow in fiscal year 2027 due to new apartment and housing developments in the area. Homes in St. James are getting more expensive, meaning that property values are also rising. The median cost of a home in St. James is $173,000, which is 9.4 percent more than last year. Homes spend about 34 days on the market before they are sold.

The unemployment rate in St. James hovered between three and four percent in fiscal year 2026, which is on par with that of Missouri statewide, and slightly below the national average, which was 4.1 percent in July 2026.

DeMouche said new businesses, such as Amazon, which is constructing an 80,000-square-foot delivery station in St. James, will bring even more jobs to the area.

“It creates direct jobs in warehousing, transportation, maintenance and management,” said DeMouche, adding that the Amazon warehouse will create indirect jobs for trucking companies, construction firms, suppliers and restaurants.

Amazon was a major contributor to city funds in fiscal year 2026 due to building permits. The city received $158,000 in revenue from building permits. The budget for fiscal year 2027 predicts that the city will receive just $15,000 in building permit revenue.

St. James currently has a poverty rate of 19 percent, which is notably higher than the state average of 12.3 percent. However, DeMouche said that the poverty rate in St. James has fallen by at least one percent since last fiscal year. The average per capita income in St. James is $24,941 per year, which is $1,000 higher than last year, according to DeMouche.

“The biggest positives are that employment is strong,” said DeMouche, adding that St. James has issued 16 new business licenses since last year.

The city is not without struggles, said DeMouche.

“Incomes remain below the Missouri average. St. James’ economy is relatively small, and population growth is modest,” DeMouche said.

DeMouhe recommended to the city council that in the next five-to-10-years, St. James should continue to invest in industrial and logistics along Interstate 44, and to encourage growth toward Rolla, while finding opportunities to increase jobs and wage growth.

For fiscal year 2027, city administration officials predicted that sales tax revenue will increase by nine percent from the 2026 fiscal year. St. James receives two percent sales tax — a two percent tax on goods bought within the city limits. One percent is unrestricted and goes to the city’s general fund. The other one percent is restricted to be used only for stormwater, parks and transportation. Sales tax in fiscal year 2027 is expected to bring in $790,459, slightly more than the $774,960 projected for the 2026 fiscal year.

According to DeMouche, the five largest industries that contribute to sales tax are supermarkets and convenience stores, automotive sales, soft drinks (and breweries and wine), general merchandise and gas stations.

In all, sales tax makes up 41 percent, the largest pool of revenue for the St. James budget. The second-largest contributor to city funds is the Parks and Recreation Department. Fees and charges from Parks and Recreation facilities (like pool entry fees, space rentals and concessions) are expected to make up 22 percent of St. James revenue budget for 2027 fiscal year.

The proposed fiscal year 2027 allocates nearly $2 million to the city’s general fund, which includes the city’s police department, city administration, parks and recreation department, and streets department. The Parks and Recreation Department will receive the largest share of money from the general fund, at 32 percent. The police department is allotted 28 percent, city administration 26 percent and streets department 14 percent. Money from the general fund earmarked for various city departments are used to pay for salaries and benefits, insurance, auditing and legal fees, professional and contract services, and professional development. 

The proposed fiscal year 2027 budget shifts spending toward higher personnel costs, utility operations and infrastructure projects. Those increases affect multiple departments and come as the city continues to balance day-to-day operations with the costs associated with growth and development.

For the 2027 fiscal year budget, DeMouche has requested a general wage increase of three percent for city employees, and a 29 percent budget increase for health insurance.

Next year’s budget also outlines a number of capital infrastructure projects. Capital infrastructure projects usually involve major renovations, improvements, and construction on public spaces and infrastructure.

The fiscal year 2027 budget, if passed, would fund $50,000 in HVAC improvements to City Hall, $62,000 for park equipment, $250,000 for stormwater improvement projects, $200,000 for street paving, $150,000 for electric pole installations, and $350,000 for wastewater treatment improvements. In all, the city plans to spend just over $1 million on capital improvement projects.

Several funds are expected to end fiscal year 2027 with negative balances. The St. James Solid Waste Department is projected to enter fiscal year 2027 with a $21,351 negative balance. The proposed budget notes that city services like water, electricity and solid waste have struggled to operate in the black because of increasing operational costs and capital expenditures, while utility rates paid by residents have not kept up. In fiscal year 2026, the Solid Waste Department’s biggest expense after payroll was landfill tipping fees, which cost the department $240,000 — nearly a quarter of the annual budget for the department.

DeMouche suggested that investing in the city’s recycling program would help improve the Solid Waste Department’s financial situation. Recycled materials could be delivered to the city of Rolla Recycling Center, which, unlike landfills, does not charge a tipping fee.