TITLE
Recommendation to request City Manager to work with the Economic Development Department to develop targeted strategies, policies, and benchmarks to propel the growth of key growth sectors in Long Beach - including aerospace and aviation, ports and supply chain, entertainment and hospitality (arts, culture, tourism, restaurants), healthcare and hospitals, and education - and refer to the Economic Development and Opportunity Committee for input and discussion.These strategies should include sector-specific revenue targets that will help secure Long Beach’s financial future as well as analysis on how the City can support the recruitment, growth, retention, and success of the City’s leading growth sectors; and
Request City Manager to work with the Financial Management Department to identify a menu of alternative revenue generating strategies and opportunities to offset projected reductions in oil revenues and its associated impacts over the next decade and grow the City of Long Beach’s revenues in the short, medium, and long term, and refer to the Budget Oversight Committee for input and discussion.
DISCUSSION
During the 2023 State of the City Address, Mayor Richardson outlined some fundamental shifts in the way the City of Long Beach funds its public services, as outlined as part of the Opportunity Beach Agenda. For generations, Long Beach has provided critical city services that have relied on revenue streams tied to the production of oil and fossil fuels. As we enter the 2030s and begin to plan for a more climate sustainable economy, this practice will gradually come to an end. It is clear that relying on fossil fuels as a local revenue source to support core city services in perpetuity is not feasible, not only from a community health perspective, but also from a financial perspective.
According to current city staff projections (as shown in the graph above), Long Beach’s oil revenues will see declines of 9-10% each year until 2035. Because the City ...
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