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Published on June 11th, 2013 | by Zamná Ávila

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LB City Manager Proposes Use of $56 million

LONG BEACH — Long Beach City Manager Patrick H. West sent out a memo that outlines proposals for spending about $56 million of “one time money” that will not be available in the future.

The large amount of money comes from primarily two sources — oil revenues (because the per barrel remains way above $90) and the dissolution of redevelopment by the state and court.

Some areas not covered in the memo are:

  • Unfunded liabilities — the city’s go forward obligations on pensions and health care benefits
  • Restoring the materials budget for the city’s library system which was nearly decimated in prior budgets
  • Disaster preparedness – the need to make certain all city facilities have supplies and equipment (back up electricity) in the event of a major earthquake

All these very years in which redevelopment was in place — capturing 42 percent of the city and the tax increment in 42 percent of the city — the rest of the City was going without those property taxes. The city’s general fund lost $9 to $20 million a year in taxes. These taxes are now being restored to the city because of the dissolution of redevelopment.

Redevelopment and the taking of tax increment were allowed without a vote of the taxpayers.

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