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<select name=city_id>
 <TMPL_LOOP cities>
...
    <TMPL_VAR city_name>
 </TMPL_LOOP>
</select>

<select name=city_id>
 <TMPL_LOOP cities>
   <option value="<TMPL_VAR id>"><TMPL_VAR city_name>
 </TMPL_LOOP>
</select>

sub _getBuilderList {
  my $self = shift;
...

  return $cities;
}

my $city_list= $self->_getBuilderList;

...
  scalarref  => \$template->output,
  fobject    => $self->query,
);

$self->query->param( city_id => $some_value );

# HTML::FillInForm code as before

sub _getBuilderList {
  my $self = shift;
...
                                                                      
+          
  return;
}