The St. James City Council approved the 2027 fiscal year budget at the Sept. 14 meeting. The budget will be implemented on Oct. 1.

The new budget contains forecasted income from revenue sources that fund the city’s general account. Some funding sources, like sales tax, are projected to increase in fiscal year 2027. St. James brought in $774,960 in sales tax last fiscal year, which is projected to increase to $790,459 – a hike of about two percent. The top sales tax contributors in St. James are grocery and convenience stores, which are expected to generate $110,000 in sales tax next year. Other top contributors include sales from home centers and general merchandise.

Last year, automotive vehicle repairs were the highest contributor of sales tax revenue. This year, they are expected to contribute the least of any industry, at slightly less than $20,000.

Revenue from use taxes, property taxes and business licenses is also expected to increase slightly. According to City Administrator Leeann DeMouche, revenue from property taxes is expected to increase to $330,000 from the previous year’s $322,000. Use taxes for internet sales have remained steady for the last three fiscal years and bring in around $375,000 annually.

Some revenue sources are expected to fall short of what they brought in last year, including:

Cannabis sales was $77,000 in fiscal year 2026 and is expected to drop to $65,000 in the coming year.

Building permits was abnormally high in fiscal year 2026, at $158,000, due to the still-ongoing construction of an Amazon warehouse and shipping facility in St. James. The fiscal year 2027 budget projects just $15,000 in revenue from building permits.

Overall, the city’s general fund revenue is expected to dip slightly in the coming fiscal year. In fiscal year 2026, the city’s total general fund revenue was $2,123,510. In the newly passed fiscal year 2027 budget, that number is $1,955,197, which represents a 7.92 percent decrease in general fund revenue.

“As for the general fund, it wasn’t really great news,” Demouche said, adding that the budget this year is tighter than in previous years, but that her office prefers to make conservative projections about the city’s budget, rather than accidentally overspend.

“I’m frugal,” said DeMouche. “I try to lowball because I’d rather start off lower, then bring (the budget) higher midyear and say ‘Oh, goody, we’ve got some money that we can play with at midyear.’”

For fiscal year 2027, St. James has increased expenditures for personnel, including a three percent general wage increase for all city employees.

DeMouche said that City Hall is planning to hire a deputy city clerk, which has been accounted for in the city’s personnel budget. The new budget also allows a 28 percent increase in spending on health insurance for city employees. The city pays 85 percent and employees are responsible for the remaining 15 percent of the current insurance plan provided.

The largest expense from the city’s general fund will go toward salaries and benefits for employees of the St. James Police Department and City Administration, which will cost $1,119,578. Operating costs, which pay for insurance on city property, auditing and legal fees, are budgeted at $603,940. The budget allocated $591,132 to be transferred to Parks and Recreation, and also to pay for vehicles for the St. James Police Department. Lastly, the general fund budget allocates $287,242 for reserves.

The Parks and Recreation budget is funded by both special revenue, which is property and sales tax money specially allocated for the parks and the city’s general fund. The 2027 budget allocates $622,955 in payroll for full-time and seasonal part-time employees. It also budgets $327,150 for operating costs, which pay for concession stands, minor equipment, park improvements, repairs, maintenance and fuel. The parks fund will receive $300,000 from the city’s general fund and $210,150 from the stormwater fund.

The parks budget allocates $62,000 for capital improvement projects, which, according to Parks and Recreation Director Kristy Rich, will be spent on new playground equipment at the Lake Shelter South.

The Street Department’s budget is provided entirely by special revenue. It includes $439,443 for payroll and $72,668 for operating costs, which include repair and maintenance, road repair, winterization and fuel. The Street Department has $200,000 budgeted to spend on capital street repairs and $130,000 to spend on a heavy-duty front-end loader.

The library fund, also provided for solely by special revenue from property taxes, has $101,201 budgeted for payroll and $32,121 for operating costs, which will pay for the purchase of new books and subscriptions.

Two city utility departments are starting fiscal year 2027 with financial deficits. The solid waste department has an available balance of negative $21,351. The St. James City Council raised the cost of solid waste services in an effort to help the utility with its cash flow issues. Starting Oct. 1, residential curbside service will increase by $0.53 per month. Commercial curbside service will increase by $0.59 per month. The price of dumpsters will also increase by 30 percent.

St. James’ water utility has a net-negative balance of $187,535. DeMouche said that city administrators are working on a plan to adjust water rates in order to help the financial feasibility of the water utility. The city council is also expected to vote on a set of rate increases for electricity next month.

Other utilities are in better shape under the new budget. The wastewater fund is expected to bring in $1,006,000 in revenue, with operating costs of $893,962. The natural gas utility is expected to bring in $1,549,434, with $1,494,402 in operating costs.

The fiscal year 2027 budget also allocates funding for six capital infrastructure projects across city departments. Gas taxes will fund $200,000 in street paving projects at Aida, Jackson and Holly lanes. Gas taxes will also fund a $250,000 project for stormwater improvement projects. The first of two phases for the project will be completed in 2027.

A total of $62,000 from the city’s general fund has been allocated for the purchase of playground equipment for Lake Shelter South. Another $50,000 from the general fund will go toward replacing HVAC systems at St. James City Hall. Electric rates will fund a $150,000 project to replace utility poles across the city. Wastewater funds will pay for $350,000 in upgrades to the lift station at Washington Street.

Other city expenditures in the budget include debt payments. The Parks and Recreation Department will make a $137,825 payment on a general obligation bond, which is set to end in October, 2029. Funding for the payment will come from the general fund. The electric utility will pay $473,155, funded by electric service rates, on a separate general obligation bond that is set to end in March 2030.

The wastewater utility will make a $144,702 payment, funded by wastewater service rates, on a loan that is on track to be paid off in 2043. The Solid Waste Department will make a $36,000 payment, funded by solid waste service rates, on a Solid Waste Truck that will be paid off by 2033. Finally, City Hall will make a $17,307 payment from the general fund to pay off internal debts, which are due in 2031.

Various city departments also plan to purchase new vehicles next year. The police department plans to replace three service vehicles, Ford Tauruses, with new Ford Interceptors for $55,000 per vehicle, one of which will be funded through a Blue Shield Grant, and the rest will come from the general fund. The natural gas utility plans to purchase a new van for $75,000, which will be paid for through natural gas service rates. The Streets Department plans to purchase a new loader for $140,000, which will be paid for by gas taxes. The electric utility will purchase a $490,000 digger truck, the money for which has been in the department’s budget for two years, according to DeMouche.