Mayor James's press office did not return two calls requesting comment.
Mayor James is out of the race, after 20 years in office; his term ends on June 30.
Mayor James has declined to release the audit of the funds.
In one example, the paper reported that Mayor James had hired his own son, just out of college, for a $32,084-a-year city job.
Mayor James has said the city would contribute to the cost of the arena as well.
Mayor James did not return calls to discuss the issue.
Mayor James has denied any attempt to control the selection process.
Mayor James said the towns had a right to question the county about how their money is spent.
Mayor James, 69, denied that politics plays a role in police personnel decisions.
Mayor James, who had questioned the council's plans, could not be reached today for comment.
