By BRENT MARTIN
St. Joseph Post
St. Joseph City Manager, Mike Schumacher, says the budget talks ongoing at city hall have revealed a sober truth about the city.
Schumacher says as city officials put together a budget for the next fiscal year, they are looking farther down the line.
“Our revenue growth is not where it needs to be. It’s not even close,” Schumacher tells KFEQ/St. Joseph Post. “Really, that’s the biggest take away, I think, from this conversation on budget, this financial planning piece which was kind of introduced this go around.”
Schumacher says the city must address its declining population.
“St. Joe in the last 10 years has experienced a 6.4% population decline and that’s a problem,” according to Schumacher. “Our revenue growth, if you want my opinion, is weak at best.”
That drop in population has led to a drop in revenue, especially as sales tax revenue falls. Schumacher says the city relies on sales tax revenue to fund its services. City revenue has been propped up by federal funds during and in wake of the COVD-19 pandemic. Congress pumped billions into the economy to keep it afloat. Approximately $34 million came into city coffers from the American Rescue Plan Act, ARPA.
Schumacher says the post-COVID dollars so generously distributed by the federal government in wake of the pandemic have been spent.
“ARPA dollars are done. So that party’s over,” Schumacher says. “So, some departments look like they decreased, but they really didn’t. The extra money that was added for various and sundry items, tied to ARPA, is gone.”
Schumacher says St. Joseph must address its population decline.
“Residential growth and population growth needs to be on the forefront of the organization’s mind, and really laser focused,” according to Schumacher.
Schumacher says the city must rebuild its population if it is to keep providing the services residents expect.
“Council’s energetic and engaged. They recognize it. Our partners at the Chamber (of Commerce) certainly recognize it,” Schumacher says. “You’re going to see us move aggressively into that housing mix. How do we move that needle?”
The St. Joseph City Council is currently working on an approximately $200 million for the next fiscal year that begins July 1st.
You can follow Brent on X @GBrentKFEQ and St. Joseph Post @StJosephPost.
