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Temple City projects higher year-end reserves; council unanimously accepts fourth-quarter review
Summary
City Manager reported an estimated June 30, 2024 fund balance of about $29.5 million (up from a $26.3 million audited balance in 2022–23), cited ARPA-funded capital projects and rising investment yields, and the council voted unanimously to receive the report and authorize staff to adjust budget estimates.
City Manager Mr. Cook told the Temple City City Council the city's audited fund balance for fiscal year 2022–23 was $26.3 million and staff currently estimates the June 30, 2024 fund balance will be about $29.5 million, inclusive of ARPA pre-expenditures.
Mr. Cook told councilors that the city used American Rescue Plan Act (ARPA) funds to pre-fund several capital projects and listed examples: roof and HVAC repairs, council chambers improvements, a financial system upgrade, pickleball courts, construction work at Live Oak Park and repairs to the trellis at the City Hall entryway. He said some projects are coming in under budget and that earlier authorization to pre-expend ARPA funds was intended to avoid losing those federal dollars.
On revenue trends, Mr. Cook said sales tax revenues were about 7% above projections from two years earlier but that the city is seeing a moderation in revenue growth as post-pandemic spikes level off. He also reported the city's investment yield was roughly 4.35% at the time of the presentation, which contributed to the surplus.
Council members pressed staff on capital accounting and anticipated draws against the fund balance. Mayor Pro Tem asked whether any budgeted capital projects remaining would draw down the surplus; Mr. Cook said yes and estimated an additional draw of about $1.5–$2.0 million from ARPA funds as those projects move forward, leaving the city with more than $26 million in general-fund reserves after the anticipated draws.
Mayor Chavez moved to receive the fiscal year 2023–24 fourth-quarter financial review and to authorize staff to revise revenue and expenditure budget estimates as shown in the staff report. The motion received a second and passed on a unanimous roll call vote (Council Member Chen, Council Member Man, Council Member Sternquist, Mayor Pro Tem and Mayor Chavez all voting yes). The council also approved a fee waiver for the 2024 Relay for Life event earlier during the consent calendar.
Why it matters: The city's reported surplus and the outlined uses of ARPA funds affect the timing and scale of near-term capital projects and the city's general-fund reserves. Council direction to staff to revise budget estimates authorizes administrative updates that will be reflected in subsequent budget reports.
The manager provided a brief operations update after the vote; the council then moved to other routine business and closed the meeting in memory of a longtime attendee.
