TITLE
Recommendation to approve and adopt the First Modification and Supplement of the Long Beach Unit Annual Plan (July 1, 2006 -
June 30, 2007). (Citywide)
DISCUSSION
In accordance with Chapter 138, California Legislature, 1964 First Extraordinary Session, an Annual Plan of Development and Operations and Budget for the Long Beach Unit (LBU) must be adopted by the City of Long Beach and approved by the State Lands Commission. Chapter 941, California Legislature, 1991 Sessions, amended Chapter 138, requires the City and the Contractor, Occidental Long Beach, Inc. (OLBI), to prepare a five-year plan of development (Program Plan) and to review and replace this plan every two years. Also required is the preparation of a one-year plan (Annual Plan), which consists of the applicable portion of the Program Plan plus an itemized budget of intended expenditures.
The Annual Plan covering the period of July 1, 2006 through June 30, 2007 was adopted by the Long Beach City Council on February 21, 2006 and approved by the State Lands Commission on April 17, 2006.
In accordance with the provisions of Part IV, Sections A and B of the Annual Plan, we are submitting the First Modification and Supplement of the Annual Plan covering the period of July 1, 2006 through June 30, 2007. The Annual Plan modification and supplement is required since the amount to be expended for the Taxes, Permits, and Administrative Overhead Category will exceed 120 percent of its budgeted amount. This Category will require an additional $7.7 million (33 percent increase) primarily because the county tax assessment was higher than anticipated ($9.8 million compared to. $4.2 million budgeted). The requested supplement is wholly funded out of LBU operating profits and will increase the Taxes, Permits, and Administrative Category from $23.1 million to $30.8 million.
This item was reviewed by Principal Deputy City Attorney J. Charles Parkin on February 27, 2007 and Budget and Performance Management B...
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