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Temple City Council accepts midyear budget report; ARPA used to cover sheriff contract, city projects to continue
Summary
Council unanimously received the FY 2024–25 midyear financial review and approved staff revisions that reflect a $352,500 net revenue increase, continued use of ARPA funds to cover Sheriff contract costs, and a projected general fund balance of about $31.2 million as of June 30, 2025.
Temple City’s City Council unanimously received the fiscal year 2024–25 midyear financial review on Feb. 18 and authorized staff to adjust revenue and expenditure estimates as recommended in the report.
Administrative Services Director (Mr. Kung) and City Manager Brian Cook led the presentation, which outlined revenue trends, special funds and proposed amendments. Staff reported a projected general fund balance of about $31.2 million as of June 30, 2025 after midyear revisions, and explained the city has used American Rescue Plan Act (ARPA) funds to cover its contract with the Los Angeles County Sheriff’s Department to maintain public‑safety services.
Key figures and drivers: staff said general fund revenues were adjusted upward by roughly $352,500 (including a $350,000 one‑time building‑permit fee related to a project on Lost Tunas/Los Tunis), and recommended a conservative reduction to court fine estimates. Mr. Kung said special funds (RMRA/Metro/gas tax) total about $11 million and noted that interest income is slightly above original estimates. "We hold on to our investments till maturity," Mr. Kung said while describing investment income timing effects.
ARPA and fund balance: Cook and Mr. Kung said most ARPA funds have been spent on eligible general services, principally to cover Sheriff's contract costs, and only approximately $500,000 remained as of Dec. 31 (likely expended in January). "We have spent that money and we have utilized it in exactly what the Federal Regulations were to use that money for," Cook said, noting auditors have reviewed the expenditures.
Why it matters: the midyear adjustments maintain a conservative budgeting posture while freeing general‑fund capacity for capital projects by applying ARPA dollars to public‑safety contract obligations. Council members asked about the extent of ARPA spending and long‑term capital plans; staff said they will seek outside grant funding and other sources where possible for future capital improvement projects.
What’s next: staff will incorporate the authorized adjustments in the FY 2024–25 financial records and begin preparations for the FY 2025–26 budget process, including departmental packets to be distributed to departments and a May 27 study session followed by a June 17 adoption target.
