Support the LB businesses you see here:

Joe Sopo
Joe Sopo, Realtor has his pulse On LB real estate. Click for info
Lovelace Feb 05
Wedding Entertainment Planning Is His Specialty. Bill Lovelace Delivers Personalized, Wedding Event Services. Get Info, Click Here

Become A Hero To LB Animals With A $15 Membership. Learn About Us, Click Here.
Friends of LB Animals
Saving Lives Thru Spay/Neuter & Education

Pollman's Insurance, Full Service, Homegrown Firm Helping LB Area Homeowners & Drivers Save In 2005! Click for info.

Carter Wood Floor pic
Carter Wood Floors, a LB company, will restore your wood floor or install a new one. Enhance your home. Click pic.

Mike & Kathi Kowal
Mike & Kathi Kowal know Los Cerritos, Bixby Knolls, Cal Hts. and beyond. Click to learn more

NetKontent Digital Video Cutting Edge Services For The Internet, Broadcast and Multimedia. Click For Info

Ninos Ristorante: A delicious treasure in Bixby Knolls. Click here if you're hungry or for catering!
3853 Atlantic Ave.

Your E-Mail
Click here

  • Neighborhood Groups/Meetings
  • How To Recall a LB Elected Official
  • Crime Data
  • City Council Agendas
  • Port of LB Agendas
  • Planning Comm'n Agendas
  • E-Mail Your Council member
  • Council District Map
  • LB Parks, Rec & Marine
  • LB Schools
  • LB Airport Watchdog
  • Sacramento
  • Washington
  • References & Archives
  • Lost, Found & Adoptable Pets

    In Depth

    Fiscal Red Tide: Major Elements Of LB's Downtown Beach/Waterfront Area Are Losing Millions And Have For Years, City Mgt. Memo Tells Mayor & Council

    (April 7, 2005) -- has learned that city management has advised the Mayor and City Council that major elements of LB's downtown beach/waterfront -- publicly touted as successes -- are losing millions of dollars and have done so for some time.

    "[T]he city's beach/waterfront area requires significant operating resources, but generates minimal revenue" says a March 26 memo from Marine Bureau Manager Mark Sandoval to City Manager Jerry Miller for Mayor O'Neill and members of the City Council.

    Among multiple items, the memo says both the Pike and the Aquarium parking structures -- which were supposed to pay for themselves in parking revenue -- are costing roughly $1.2 million and $500,000 annually.

    The memo also indicates:

    • Rainbow Harbor Area Fund: (Operations in the Rainbow Harbor and surrounding area) Operating deficit: $6.7 million (revenue: $1.2 million; expenditures: $7.9 million). "In general, this deficit is comprised of the debt service for the development ($3.9 million), the high level of maintenance needed in the area ($1.7 million)..." The Aquarium Parking Structure's operating profit ($700,000) isn't sufficient to cover the Aquarium Structure's bond payment ($1.2 million).

    • Tidelands Operating Fund: (All waterfront related revenues and expenditures other than marinas and Rainbow Harbor area). Budgeted revenues: $37.8 million. Budgeted expenditures: $49.2 million. Resulting deficit: $11.4 million. "[T]wo commercial agreements...comprise a large part of this deficit: the subsidy to the Convention Center ($3.4 million) and the subsidy to the Hyatt Hotel ($1.9 million)." Maintenance costs: approx. $3.5 million; rescue boat and lifeguard operations: approx. $4 million; and "the Pike parking structure is...expected to require $1.2 million to cover debt service payments."

    • Tidelands funds (w/ expenses controlled by City Mgr: Tidelands Operating fund + Marina fund + Rainbow Harbor fund): Unsubsidized deficit: $17.8 million...offset in part by transfer from Harbor Fund ($9.5 million) and Tidelands Oil Revenue Fund ($6.0 million)...leaving an estimated FY 2006 deficit of $2.3 million.

    • Queen Mary & related rent dispute: "The anticipated FY 2006 beginning fund balance will include several million dollars in rent receivables from the Queen Mary. If these disputed funds are not received, then the projected beginning fund balances in FY 2006 would not cover the estimated [Tidelands] deficit [above] of $2.3 million."

      Management includes in its projected structural deficit $1.5 million in annual revenue from Queen Mary operations; if that Queen Mary revenue isn't forthcoming, the structural deficit would increase accordingly.

    The memo says the Tidelands Funds "have had a structural imbalance for many years, where ongoing revenues have not matched ongoing operating expenses." It notes that in recent years, high oil revenue helped balance the Tidelands Funds, but "it is apparent that steps must be taken to address this structural deficit." was provided with a copy of the memo by city response to an inquiry we made following a newstip from a reader. The reader indicated (and we confirmed) that a Downtown Tidelands Development Study, which had been funded by the Tidelands, was ordered discontinued by city management due to the Tidelands financial condition.

    The management memo concludes:

    To begin the process of addressing the Tidelands Funds structural deficit, operating departments have been directed to develop reduction lists which total approximately 19 percent of their respective operating budgets. The three largest departments operating in the Tidelands Funds are Parks, Recreation and Marine, the Fire Department and the Police Department. The reduction targets for these departments are $2.7 million, $950,000 and $605,000, respectively, for a total of $4.3 million...These departments all provide direct services in the Tidelands, and the reduction necessary to obtain these targets will undoubtedly include significant service cuts, including reduced security and reduced maintenance.

    The memo was cc'd to City Attorney Bob Shannon, City Auditor Gary Burroughs, Asst. City Manager Christine Shippey, Deputy City Managers Suzanne Mason and Reginald Harrison, Dir. of Financial Mgt. Mike Killebrew and City Council Liaison Jyl Marden.


    Return To Front Page

    Contact us:


    Copyright © 2005, LLC. All rights reserved. Terms of Use/Legal policy, click here. Privacy Policy, click here