The Long Beach City Council has approved a new timeline for the port to contribute its yearly tithe to the city's Tidelands Operation Fund, one that would result in a one-time-only double shot of port profits in the coming year. According to the city charter, the port has the option to transfer 10 percent of its yearly net income to the Tidelands fund, which pays for police, fire, lifeguards and beach maintenance in the Tidelands area. The port has never opted out of the transfer.

For more than a decade the port has contributed to the Tidelands operating fund in four quarterly payments, the last occurring on July 1. The transfer is determined following the final outside audit of the port financial statement, which takes about a year. That means the money due the city this coming year would usually be based on port profits in the 2009 fiscal year.

Under the new plan, proposed by City Auditor Laura Doud and approved by the council, that payment will be made in one lump sum. In addition, as estimated 80 percent of the transfer for the 2010 fiscal year will now be paid at the beginning of the new 2011 fiscal year before the audit is completed. The remaining money would be handed over to the city when the audit is done.

That means, at the beginning of the new fiscal year - which runs from Oct. 1 to Sept. 30 in Long Beach - the port would transfer nearly $9.9 million to the city based on the estimates for the 2010 fiscal year, with close to $2.5 million more when the audit is completed. The city would also get a $12.4 million payment for fiscal year 2009. The city asked for this year's last regularly scheduled payment of more than $4 million a month early as well, but the Board of Harbor Commissioners has not approved the payment re-schedule.

Although the city charter is not specific on when the transfer of money should take place, it does limit the transfer to 10 percent of net profits. Part of the city auditor's plan calls for the port not to deduct the previous year's port contribution from the profits for that year when calculating the 10 percent transfer. That would add about $1 million a year to the port's transfer.

Both the port staff and its outside auditor disagree with the city auditor's interpretation of net profits. The transfer of funds to the city is deducted as an expense, like any other transfer, they claim. The city can't pretend the transfer never happened, said Harbor Commissioner Susan Anderson Wise.

The plan was approved enthusiastically by the City Council last week, but it has not yet been voted on by harbor commissioners, some of whom have already expressed concern about the city's latest attempt to milk the port for more cash. The commission is expected to consider the new budget, including the new plan for the Tidelands transfer, at their meeting on Monday.

The proposed change means that the city would get money from both 2008 and 2009 fiscal years this year, bringing the total contribution from the port up to $25 million. Although the money has yet to be transferred, the council has already allocated $9.5 million to repair the most dilapidated parts of the Naples Island Seawall.

Due to diminished contributions from the port caused by the recession, the Tidelands fund could run out of cash by fiscal year 2012, and the city has estimated repair and maintenance projects in the Tidelands area as high as $300 million above normal operating costs. Pressing projects include upkeep of the Long Beach Convention Center, Colorado Lagoon, the repairs to the Naples Seawall and run-down beach restrooms. Repairs on the seawall alone are estimated at $60 million.

-- The Cunningham Report