Port of Long Beach Sets $760 Million Annual Budget
The Long Beach Board of Harbor Commissioners have approved a $760 million budget for the Port of Long Beach for the 2025 fiscal year, establishing a plan to fund new capital improvements in rail, zero-emissions and other infrastructure.
Later this year, the budget will be sent for approval to the Long Beach City Council. It includes a record $25.8 million transfer to the City’s Tidelands Operating Fund, which supports quality-of-life projects along Long Beach’s seven-mile coastline that have improved shoreline safety, cleanliness, water quality, facilities and other amenities.
The port’s budgeted spending for the 2025 fiscal year, which begins Oct. 1, is 19.5% higher than the budget adopted last year. The increase is largely due to infrastructure projects like the Pier B On-Dock Rail Support Facility, which breaks ground this year, and the proposed Pier Wind. If approved, Pier Wind would be the nation’s largest facility specifically designed to assemble offshore wind turbines.
Operating revenue is estimated to be 6.8% higher than last year’s budget.
Next year’s proposed capital budget totals $368.3 million, 47.2% higher than the prior year. Of the sum, $204.9 million is for the Pier B project, which will break ground this summer. Pier B will shift more cargo to “on-dock rail,” where containers are taken to and from marine terminals by trains. Moving cargo by on-dock rail is cleaner and more efficient, as it reduces truck traffic. No cargo trucks would visit the facility. The Port of Long Beach maintains one of the most comprehensive seaport infrastructure programs in the nation.
Also included in the budget is approximately $25 million in Clean Truck Fund subsidies to support the transition of the heavy-duty truck fleet to zero emissions. The Port of Long Beach has twin goals of a zero-emissions cargo-handling fleet by 2030 and zero-emissions trucking by 2035. Additionally, during the board’s action, the amount allocated for the community sponsorship program was increased from $2 million to $3 million. The sponsorship program helps the Port of Long Beach engage with and inform local community members about port operations and initiatives.
Message from LB City Auditor Laura Doud
The City of Long Beach derives revenue from oil and gas operations including various taxes and fees through 14 oil operators with over 2,700 wells. This revenue funds services and projects that safeguard the environment, improve infrastructure, enhance beaches and keep residents safe.
The city recently released a report that found it is projected to have a decline in oil revenue up to $301 million by 2035 due to oil production decline and the potential passage of Senate Bill 1137 (SB1137).
The report forecasts a 54% decrease in oil revenue to $26 million by 2035 due to the natural oil production decline of 6% annually which is expected until the oil field may generally cease production for economic reasons.
With the anticipated decline in oil production and revenue, the city needs alternative strategies to bridge the revenue shortfall for capital projects, public safety operations, and all other essential city services that residents rely upon.
Details: View the report here: https://tinyurl.com/Climate-Transition-Impact