Tuesday, December 15, 2009

Port of LB Tideland Transfer Funds Threatened by City

Three Long Beach City Council members have recommended changing the City Charter to increase the annual transfer from the Port of Long Beach. The Long Beach City Council will consider the increase today at 5 p.m.

Currently, the Port of Long Beach transfers 10 percent of its net revenue to the City of Long Beach on an annual basis. The port also provides additional funding for various city projects ranging from financing of the city’s convention center to providing a financial backstop to the city aquarium.

The Port of Long Beach is the only port that annually transfers money to their City government. According to the Port of Long Beach’s FY10 budget materials, the Port has invested more than $790 million into the City of Long Beach since 1990. That equates to approximately $41.5 million per year on average.

Maritime industry advocates are concerned that increasing the Port’s financial obligation to the city will erode the Port of Long Beach’s competitive position among other West Coast ports.

Port of Long Beach industry advocates urge those concerned about decreases in the Port’s operating funds to attend this evening’s meeting and/or contact Long Beach City Council members and urge them to protect the current status quo.