A tight rein is being kept on the number of staff, while debt increases heavily to pay for new developments
Los Angeles has been shown up as a stealthy job factory in the budget of its neighbor and theoretical rival, Long Beach port. "Compared to Los Angeles, which is about the same size," says the port's budget proposal for the financial year beginning October 2011, "the port has about half the head count." The budget plans to add another nine staff, bringing the total to 484 full-time.
Unveiled last week, Long Beach's budget forecasts operating revenue of $348 million (up $10 million on this year) and operating expenses of $200 million (up $8 million). Container terminal rents and fees will bring in $265 million, petroleum/liquid bulk $18 million and dry bulk $25 million. Total revenue (including interest income and loans) is $830 million, of which new loans account for 36 percent. The debt increase is largely to pay for replacement of the Gerald Desmond Bridge ($950 million when finished in 2013) serving the harbor (the equivalent of New Jersey's Bayonne bridge) and the Middle Harbor terminals ($1.2 billion over 10 years, to establish a single 345-acre facility).
Debt service cover will stay at about 3 times, well above the 1.25 times stipulated in bond issue agreements. New debt will total $300 million, up from zilch this year, bringing the total to just under $700 million.
Of the $830 million in total revenue, 75 percent is going on capital development. Spending on the Gerald Desmond will be $108 million during the year, with the idle Harbor getting $230 million.
Security again takes up a depressingly large slice of money, $41 million, plus another $19 million for fire and police services that the city provides. ln the continuing state of nerves that grips state and federal enterprises, it is clear that security-related services throw a document in front of officials and say: "That's what we want. Now pay up." There are now 72 police and security people in Long Beach port, the biggest department after maintenance.
Cold ironing will use up $59 million in the coming year, while the eventual total cost will be $200 million.
For many observers, the most interesting part of the budget is the breakdown of salaries and wages by department. The average in most cases is between $60,000 and $100,000. The 18 (17.9, according to the budget) officials in the "Executive" bracket get just under $100,000 in basic salary, but "Other Personal Expenses" push their earnings to about $130,000.