Published on June 11th, 2013 | by Reporters Desk0
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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