LONG BEACH, CA-A $1.02-billion budget for fiscal year 2014 has been approved by the Long Beach Board of Harbor Commissioners, whose plan predicts record operating revenue.
The budget projects operating revenue of $375 million for the fiscal year that will begin on Oct. 1. The Commissioners also requested $788 million in capital spending, a 6% increase over last year. The budget will be presented in July to the Long Beach City Council for approval.
The City Council has usually approved the Commissioner requests, according to Port spokesman Art Wong, although it's “sometimes after some changes. Also, the mayor can line-item veto elements within the budget.”
There are several capital improvements underway at the Port, including the Middle Harbor terminal and Gerald Desmond Bridge replacement. There will not be any further deepening of the Port at this time, a trend at many competitors. “Our main channel is 76 feet, and we have about 50 feet at most berths,” Wong tells GlobeSt.com.
The budget adds 52 new full-time positions, which include 33 in the Engineering Bureau to oversee the ongoing capital improvements and 12 in the Security Division to integrate better with the Long Beach Police Dept. and other security agencies.
In addition, the budget sets aside $73 million for environmental programs to improve air and water quality and to protect wildlife habitat. The budget estimates a record $18.4-million transfer to the City's Tidelands Fund. The transfer would be 5% of estimated operating revenue for fiscal year 2013.
Al Moro, the Port's acting executive director, said the Port's budget incorporates a combination of prudent fiscal planning and “green growth” that increases cargo flows with environmental sustainability programs.
“Our carefully planned 10-year capital improvement program represents a significant investment in this Port, and this annual budget is just one part of that,” Moro said in a statement. “We're working to maintain this Port's ability to sustain economic activity and jobs in Long Beach and the region.”
The Port of Long Beach has 40 shipping lines connecting Long Beach to 217 seaports worldwide and handles trade valued at $155 billion each year.
As previously reported by GlobeSt.com, U.S. ports must secure $3.6 trillion for infrastructure improvements by 2020 in order to stay competitive.
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