Long Beach Voters Approve Port Revenue Measure

Long Beach voters on Tuesday approved an initiative that will most likely result in the port turning over more of its revenue each year to the city. Maritime interests also view the initiative, known as Measure D, as a sign that the Port of Long Beach has become more politicized.

The city administration said the measure was needed to clarify an annual transfer that the port makes each year to the city's tidelands operating fund. Measure D changed the formula for the transfer from 10 percent of net income to 5 percent of gross operating revenue.

Maritime interests charge that the description of the measure was deceptive. "Many city officials and politicians led voters to believe that this measure is a simple clarification," said John McLaurin, president of the Pacific Merchant Shipping Association, which represents shipping lines and terminal operators.

"Unfortunately, voters didn't have all the facts, and neither did the City Council when they put this on the ballot, because Measure D was crafted without any fiscal analysis whatsoever and without review by the harbor commissioner and professional port staff, let alone by the general public and other stakeholders," McLaurin said.

The maritime industry sponsored a last-minute advertising blitz this past week but the effort fell short. Measure D was approved by 55 percent of the voters.

City officials stated before the election that if the new formula had been in effect last year, it would have resulted in the port turning over an additional $1.5 million in revenue beyond the $14 million it actually transferred.

McLaurin said the transportation community intends to hold the city to its estimate that the increase in the future transfers of revenue will "modest."

However, Measure D also clarifies the city's jurisdiction over revenue from oil and gas-drilling operations on port property. The port estimates that those operations will generate $120 million in revenue through 2014.

The Port of Long Beach has long had a reputation in the international business community as being relatively free from political meddling. By contrast, the harbor commission in neighboring Los Angeles must receive approval from the city council for many of the decisions it makes.

McLaurin urged Long Beach to maintain what had been a positive image of the port. "As the entirety of the maritime and international business community opposed this charter amendment, accountability and transparency will be of even greater importance to the economic vitality of the Port of Long Beach and the city itself," he said.
(Source:www.joc.com)