TITLE
Recommendation to request City Manager to engage California State Lands Commission and other stakeholders regarding potential modifications to the Oil Barrel Production tax;
Request City Attorney to prepare all necessary documents to place a ballot question on the November 2020 ballot for an increase in the Oil Barrel Production Tax and to work with the City Manager to provide options and financial impact on the amount of the tax and mechanisms for a progressive tax that increases over time and for a resolution defining the City Council's intent for use of the funds; and
Request City Manager and City Attorney to explore the feasibility of preparing a ballot advisory question on whether to reinvest future cannabis revenue into economic equity, health equity, and youth investments, and to further strengthen our cannabis equity program to expand equitable ownership opportunities.
DISCUSSION
The Problem
Long Beach is home to several on- and off-shore oil wells, as its history of oil production goes back to the early 1900s. Today, oil operations revenue still contributes to the City's General Fund and essential Tidelands area services, such as police, fire and lifeguards, beach maintenance, lease management, parking operations, and other support functions.
In 1964, Long Beach voters lifted an oil drilling ban, allowing drilling to resume across the City. The Oil Production Tax (OPT) was set at $0.15 per barrel in 1990, and in 2007, Long Beach voters approved the Police and Fire Public Safety Oil Production Act (Prop H). Prop H amended the City's Municipal Code to assess an additional $0.25 per barrel special tax on oil producers in Long Beach, with an annual adjustment according to the ?Consumer Price Index. Prop H proceeds can only be used for police officers, firefighters, and related costs (equipment, facilities, training, etc.).
The Aquarium of the Pacific's Climate Resiliency Assessment Report for Long Beach lists oil-related industries as one of...
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