TITLE
Recommendation to adopt resolution requesting Board of Harbor Commissioners to approve the transfer of $16,083,972 from the Harbor Revenue Fund (HR) to the Tidelands Operating Fund (TF) as of October 1, 2009; and
Request Board of Harbor Commissioners to make said transfer in
equal quarterly installments on October 1, 2009, January 1, 2010,
April 1, 2010 and July 1, 2010. (Citywide)
DISCUSSION
At the beginning of each fiscal year, City Charter Section 1209(c)(4) provides for the transfer of 10 percent of the Harbor Department's net income, as shown by the most recent available independently audited financial statements, to the Tidelands Operating Fund. Since Fiscal Year 2009 (FY 09) has not yet ended, the FY 08 audited financial statements are the basis for the FY 10 transfer. The requested transfer of $16,083,972 represents 10 percent of the Harbor Department's $160,839,722 net income, as shown on the audited financial statement (Attachment A) for the fiscal year ended September 30, 2008. The Harbor Department would retain a significant net income of $144,755,750 after the 10 percent contribution to the Tidelands Operating Fund.
Staff has determined that without the requested transfer for FY 10, the Tidelands Operating Fund would close the fiscal year with a deficit, which would necessitate the closing of beaches and elimination of safety services in the Tidelands areas.
Authority to transfer the funds must be expressed by Resolution (attached). The transfer cannot occur until the Resolution is approved by a two-thirds majority of the entire City Council and a separate Resolution is approved by a majority of all members of the Board of Harbor Commissioners. Since the adoption of the FY 1 ° budget is dependent upon this transfer, the City Council and Board of Harbor Commissioners must adopt these Resolutions prior to the City Council's adoption of the FY 10 Proposed Budget, which includes the budget of the Harbor Department.
This matter was reviewed by Assistant City Attorney Heather A. Mahood on May 11, 2009 and Budget and Performance Management Bureau Manager David Wodynski on May 11, 2009.
TIMING CONSIDERATIONS
The 10 percent net income transfer from the Harbor Department (HA) and the harbor Revenue Fund (HR) to the Tidelands Operating Fund (TF) will be included in the FY 10 Proposed Budget. In addition, the annual transfer amount was utilized to balance the FY 09 budgets of the various departments that provide services in the Tidelands. Continuity of services in the Tidelands area, such as beach maintenance, lifeguards, fire and police is contingent on the port transfer.
FISCAL IMPACT
[Fiscal Impact]
SUGGESTED ACTION
Approve recommendation.
BODY
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LONG BEACH MAKING CERTAIN FINDINGS AND DETERMINATIONS AND REQUESTING THE BOARD OF HARBOR COMMISSIONERS OF THE CITY OF LONG BEACH TO APPROVE A TRANSFER OF $16,083,972 FROM THE HARBOR REVENUE FUND TO THE TIDELAND OPERATING FUND PURSUANT TO THE PROVISIONS OF CITY CHARTER SECTION 1209(C)(4) ]
Respectfully Submitted,
LORI ANN FARRELL
DIRECTOR OF FINANCIAL MANAGEMENT/CFO
NAME |
APPROVED: |
TITLE |
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PATRICK H. WEST |
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CITY MANAGER |