Port of Long Beach commissioners said last week that they were all behind handing over $4,020,993 to the city's Tidelands Operating Fund a month early, but ended up entangled in a lengthy discussion about the interest they would be losing.

Under the City Charter, the council can request that the harbor commission transfer 10 percent of its profits for the year to the City Tidelands Fund - which is restricted to beaches, marinas, and other tideland operations. The commission has the discretion to say no, but it never does.

For more than a decade, the port has made the transfer in four quarterly payments, the last one on July 1. The $4,020,993 transfer in question is the last installment of the $16,083,972 that the port is transferring to the city this year. Now the city wants the port to transfer its yearly tithe in one lump sum at the beginning of the fiscal year - which starts Oct. 1 - so it can earn the interest on the money instead of the port.

To get the ball rolling, the city would like to launch the new payment plan by having the port hand over the July 1 payment now.

The interest the port would lose by handing over the money early would be about $2,000, said port CFO Sam Joumblat, not really a lot when you're talking about more than $4 million. But Commissioner Mike Walter pointed out that when the city borrows money from the port, it always wants an interest-free loan, but the city also wants to receive the funds early so that it can earn additional interest at the port's expense.

Commissioner Mario Cordero said the board should come up with a policy on such situations.

In the meantime, the port board approved the request at the committee level. It is expected back before the commissioners for a final decision at the board's June 7 meeting.

-- The Cunningham Report