Lots of suburban cities in the US are really nice, well run places. LA even as an example of a poorly run area doesn't actually seem to be in much of a financial pickle.
The point is
> you can limit the costs to 5% or 10% of the budget, but your infrastructure will continue decaying
Is just confused. The $1B/year you came up with as sufficient is ~7% of the LA city budget (~$14B), and that's excluding major expenses like schools since that's the county budget. If you look more holistically at just "what's the local government spending", the amount you say is needed to properly maintain the roads is more like 3-4%. Roads are just not a financial problem. Strongtowns guy just doesn't like them.