Long Beach : City Can Use $14 Million in Harbor Funds, Official Says

City Atty. John R. Calhoun said Tuesday that City Hall is entitled to take $14.5 million from its wealthy Harbor Department to pay for general city services, and that he will issue a formal opinion in two weeks.

City and Harbor Department officials have been haggling over how much harbor money can be used to pay for police and fire protection and other municipal services.

State law generally requires that Harbor Department money, which comes from leases and tariffs generated by the Port of Long Beach, be used to expand or otherwise improve the port.

But that changed last year, after the state balanced its budget, in part, by taking property tax money that would have gone to cities and counties.

The Legislature authorized cities with ports to draw from Harbor Department reserves to make up for the property tax shortfall. But city and harbor officials have different interpretations of how much money the city is authorized to take under state law.

Long Beach would have to cut spending for such services as recreation and library programs if it were to lose much of the $14.5 million it planned on receiving from the Harbor Department this year.