Temple City manager says voters may be asked to approve 3/4-cent sales tax to fund road repairs

City Manager Brian Cook told Temple City residents on Zoom that the city faces a growing gap between recurring costs and recurring revenue and that the council is exploring asking voters to approve a 3/4-cent (0.75%) local sales-tax increase to fund road repairs and sustain services.

Cook said the city's operating budget this year is roughly $26 million in expenditures against about $20 million in revenue, and that the council has relied on general-fund reserves and one-time federal money for capital projects. "We need additional revenue in order to do those regular tuneups," Cook said, using the example of recurring pavement maintenance. He estimated the city needs about $25 million to $30 million over the next seven years to move the pavement network from a C rating toward a B/B+ and avoid more costly work later.

Under the current 9.75% combined sales-tax rate in Temple City, the city retains about 1 percentage point. Cook explained that if voters approve a local increase that would raise Temple City's share (for example from 1.00% to 1.75%), the city would keep the new locally generated revenue. He said a 0.75% measure appearing on the ballot could bring in roughly $2.5 million a year and that such funds would be dedicated to local needs such as residential street paving, enabling neighborhood streets to be paved every seven to 10 years.

Cook said public-safety costs have also increased significantly, noting that components of the sheriff's contract that function like insurance premiums have risen from about 29–3% of contract value to roughly 12.5%, which amplifies the pressure on the general fund. He described a council-directed plan to recruit non-sworn community service officers to handle lower-risk calls and augment sworn deputies, while continuing the city's contract model with the Los Angeles County Sheriff's Department and fire protection from the Los Angeles County Fire Department.

Cook reviewed how the city used about $8 million in American Rescue Plan (ARPA) funds for one-time capital investments (playground improvements, a park property purchase and roof/HVAC work at city hall) rather than to fund recurring operations. He warned that those one-time funds cannot fill ongoing shortfalls and that grant sources usually support one-time projects.

Cook said Temple City carries no agency debt, and that the council has pursued conservative budgeting and robust reserves to fund capital projects, but that the latest five-year projection shows minimal or no surpluses going forward. He said the council will consider whether to place a tax measure before voters; Cook noted a January poll showed majority support for a 0.75% sales-tax increase and said the council could consider placing an item on the ballot later this year.

The manager's presentation focused on providing context for residents about how municipal services are funded, why the city is considering a local tax measure and what the revenue would buy. Cook closed by inviting public questions and explaining how residents can raise hands or submit questions with Zoom features during the meeting.