* This transcript was created by voice-to-text technology. The transcript has not been edited for errors or omissions, it is for reference only and is not the official minutes of the meeting. [00:00:03] THE SUBCOMMITTEE OF THE MARINE ADVISORY COMMISSION FINANCE COMMITTEE IS NOW CALLED TO ORDER. THE TIME IS ONE FORTY FIVE. I'LL CALL THE MEETING TO ORDER THOSE IN ATTENDANCE. COMMISSIONER CHAIR, UH, I'LL TAKE, UH, ROLL CALL FOR YOU. THANK YOU. UH, COMMISSIONER CAGER HERE. COMMISSIONER MCRAY. I'M HERE. COMMISSIONER ZAMAN. YOU HAVE A QUORUM. THANK YOU. UH, WE'LL START OUR REGULAR AGENDA. UM, I HAVE A RECOMMENDATION TO APPROVE THE MINUTES OF THE FINANCE COMMITTEE OF THURSDAY, OCTOBER 10TH, 2024. DO I HAVE A SECOND? SO MOVED OR A SECOND? THANK YOU. HEARING A SECOND. UM, MAY I TAKE A VOTE PLEASE? THOSE IN FAVOR, AYE. AYE. THANK YOU. THE MOTION CARRIES. OUR, UH, WE HAVE APPROVED THE MINUTES OF THE FINANCES COMMITTEE OF THURSDAY, OCTOBER 10TH. THE NEXT AGENDA ITEM IS A RECOMMENDATION TO RECEIVE AND FILE THE MARINE BUREAU FINANCIAL REPORT. DO I HAVE A SECOND? UH, BE BEFORE WE MOVE CHAIRWOMAN, UH, IF YOU CAN ASK ONE THING, IF THERE'S ANY PUBLIC COMMENT, IT JUST COVERS US, ESPECIALLY ON THE TAPE. SO YOU'D SAY, THANK YOU. PUBLIC COMMENT, STAND CORRECTED. ARE THERE ANY MEMBERS OF THE PUBLIC WHO WOULD WISH TO HAVE PUBLIC COMMENT ON THIS AGENDA ITEM? SEEING NONE. THERE YOU GO. MOVE AHEAD. DOING GREAT. DOING GREAT. UH, OUR SECOND AGENDA ITEM IS A RECOMMENDATION TO RECEIVE AND FILE THE MARINE BUREAU FINANCIAL REPORT. I WOULD LIKE A MOTION TO, UH, MAKING A MOTION TO, UH, RECEIVE AND FILE SECOND IN FAVOR. NO, THIS GOES FROM THERE IT GOES. YOU JUST GO TO YOUR MOTION. YOU GO TO YOUR MOTION AND THEN YOU OPEN YOUR DISCUSSION. THANK YOU. I'VE MADE A MOTION AND THEN VOTE AT THE END. AND WHEN, SINCE YOU'RE THE CHAIRWOMAN, WHEN YOU MAKE THE MOTION, I HEAR MOTION IT WOULD BE ME. THEN YOU WOULD SECOND IT. THAT WAY IT TAKES IT AWAY FROM YOU. THANK YOU. IT WOULD BE ME. AND THEN NOW IT GOES TO TODD AND THE FINANCE COMMITTEE TO SHARE WITH US OF THEIR TWO OF KNOWLEDGE. YEAH. ALRIGHT. PORT FLOOR IS YOURS. THAT WOULD BE ME. OKAY. UH, I AM GOING TO GIVE A FINANCIAL SUMMARY OF THE MARINA FUND AS OF APRIL 7TH, 2025. THE FIRST PAGE IS A SUMMARY REPORT. ALL OF THE REMAINING PAGES ARE DETAILED FINANCIAL REPORTS THAT BILL THE SUMMARY REPORT. A QUICK OVERVIEW OF THE SUMMARY WORKSHEET. THE FIRST THREE COLUMNS NEXT TO THE ROWS ARE THE ACTUALS FOR FISCAL YEARS 22, 23, AND 24. THE NEXT COLUMN IS THIS YEAR, FISCAL YEAR 25, YEAR TO DATE, ACTUALS AS OF APRIL 7TH. AND THE LAST COLUMN, UH, IS THE FISCAL YEAR 25 ET CS WHERE WE EXPECT TO END UP BY THE END OF THE YEAR. IT'S OUR FORECAST. SO ETC IS ESTIMATE TO ESTIMATE. OKAY. FROM HERE, WE'RE JUST GOING TO START AT THE TOP AND WORK OUR WAY DOWN GROUP BY GROUP, BUT WE'RE GONNA FOCUS JUST ON THE LAST TWO COLUMNS. THE CURRENT YEAR, UM, WE'LL START WITH GROSS REVENUES. SO FAR THIS FISCAL YEAR, WE'VE COLLECTED $14 MILLION IN SLIP REVENUE. WE'RE T CING THAT WILL END THE YEAR AT 28 MILLION. WE'VE COLLECTED RENTALS AND CONCESSIONS OF 1 MILLION AND WE ETC WILL END UP AT 2.1 MILLION BY THE END OF THE YEAR. OTHER REVENUE WE'VE COLLECTED 1.1 MILLION SO FAR, HOPEFULLY ENDING AT 2.2 MILLION BY THE END OF THE YEAR. SO OUR TOTAL GROSS REVENUE COLLECTED THIS YEAR SO FAR IS 16,256,000. TWO $26. AND WE'RE HOPING TO END WITH 35 12. 4 52. DO QUESTION. MM-HMM . AND MADAM CHAIR, I'M GONNA ASK, UH, WHEN YOU LOOK AT IT, WE'RE NOT HALFWAY THROUGH THE YEAR YET. YES, CORRECT. YEAH. WOULDN'T YOU EXPECT IT TO BE A LOT MORE? NO, WE ARE, BECAUSE THIS IS AS OF, UH, THE END OF MARCH. IT'S OUR, WE STARTED IN OCTOBER. OH, WE STARTED IN OCTOBER? YES. OH, OKAY. OKAY. SO WE'RE A LITTLE BIT OVER. MY BAD. OKAY. NO, NO WORRIES. WE'RE A LITTLE BIT OVER. OKAY. THANK YOU. I HAVE A QUESTION AS WELL. MAY I, UH, INTERJECT YOU FIRST? UM, CAN WE HAVE AN INTRODUCTION OF, OF THE STAFF? OH, YES, STAFF. I APOLOGIZE. UH, THIS IS PORTIA SMITH. SHE IS OUR ADMINISTRATIVE ANALYST, THREE FOR THE MARINE BUREAU. UH, PORSCHE OVERSEES ALL OF OUR BUDGET NUMBERS. UH, UH, SHE MAKES SURE THAT [00:05:01] ALL THE, UH, THE, UH, PENNIES ARE WHERE THEY'RE SUPPOSED TO BE. YES. SO, UH, WE'RE REALLY, REALLY EXCITED TO HAVE PORSCHE. SHE CAME OVER TO US FROM COMMUNITY DEVELOPMENT, UH, GOSH, A YEAR AND A HALF AGO NOW. YES, ALMOST TWO, ALMOST TWO YEARS NOW. SO, AND SHE'S BEEN HITTING THE GROUND RUNNING THE TITLE ONE MORE TIME. FINANCIAL ANALYST. OH, NO. ADMIN ANALYST. ADMINISTRATIVE ANALYST. THAT'S HER OFFICIAL CITY DESIGNATION. THANK YOU. AND, AND I DO HAVE A QUESTION WITH RESPECT TO THE YEAR TO DATE ACT, I HAVE A QUESTION REGARDING THE, UM, OTHER REVENUE YES. ON OUR YEAR TO DATE. SO YOU, THOSE ARE THE, THAT'S SOURCES OF INCOME WHICH ARE NOT BROKEN DOWN, BUT COULD YOU GIVE US AN UNDERSTANDING OF WHAT MIGHT BE INCLUDED IN THAT BASKET? THAT WOULD BE WORKSHEET B. OKAY. YES. AND YOU CAN SEE THAT WE HAVE HAVE, UH, OTHER THAN RENTALS AND POSSESSIONS, SO IT'S BROKEN DOWN TO IT'S, WE HAVE TOWING FEES, UH, GENERAL WAITING LIST FEES, SELL PROPERTY EQUIPMENT, ADMIN FEES, AND THERE ARE A FEW MORE, BUT THE BIGGEST ONES ARE ON THE OTHER SIDE OF THE PAGE, WHICH IS INTEREST, FULL CASH INTEREST, OTHER INVESTMENT. NICE. MM-HMM . OKAY. THAT'S VERY HELPFUL. OH, NO PROBLEM. AND MOVING ON TO EXPENSES. SO FAR THIS YEAR WE'VE SPENT 2.2 MILLION ON MAINTENANCE. UH, THE YEAR, WELL THIS FORECASTED TO END AT 4.5. UM, WE SPENT 3.2 MILLION ON PARKS AND REC OPERATIONS. THE, WE'RE EXPECTED TO END AROUND 6.5. UH, WE SPENT 1.9 ON MARINE SAFETY, WHICH IS OUR LIFEGUARDS EXPECT TO END AT 3.8 MILLION. WE SPENT 1.4 MILLION ON MARINE PATROL AND EXPECT IT TO END AT 4.1 MILLION. THAT'S THEIR BUDGET FOR THIS YEAR. SO ALL BEING CONSERVATIVE AND WE HAVE OTHER EXPENSES. SO FAR WE'VE ONLY SPENT $513,000, BUT WE EXPECT TO END AT $2.5 MILLION. BUT PLEASE NOTE ON UNDER THE, IT HASN'T HAPPENED YET, THAT'S WHY IT'S NOT UNDER ACTUALS. BUT UNDER THE ETC COLUMN, THERE IS A PROJECT COMING UP THAT IS GOING TO BE COMPLETED THIS YEAR AT 1.1 MILLION. RIGHT. DO WE KNOW WHAT THAT WELL, WE KNOW WHAT THAT IS. YES, IT IS THE MARINE MAINTENANCE DOCK REPLACEMENT. IT'S UNDER NOTES. AND THAT'S THE DOCK AT, UH, UNDERNEATH, UH, DAVIES BRIDGE. RIGHT. THAT SUPPORTS OUR, OUR MARINE MAINTENANCE. WE TALKED ABOUT THAT. YEAH. QUESTION ON THE, UH, UM, THE LIFEGUARDS, I MEAN, WE'RE GOING UP ALMOST A MILLION DOLLARS FOR THE LIFEGUARD FROM LAST YEAR. I MEAN, I'M LOOKING AT LAST YEAR'S NUMBER, THE ACTUALS 3.6 AND WE'RE GOING TO 4.1. THAT WAS 2.9. WE'RE GOING TO 3.8 AND THAT'S FOR LIFEGUARDS. AND WHY SUCH AN INCREASE THAT I WILL, I EXTRAPOLATED DIRECTLY FROM THEIR ACTUALS SO FAR THIS YEAR. SO I KNOW THAT THERE WERE INCREASES IN RATE OF, THEY RECEIVED RAISES. OH, OKAY. SO THERE WAS A BIG, UH, UNION RAISES THAT WERE GIVEN OUT LAST YEAR. SO OKAY. IT RAISED ALL OF OUR LABOR COMMISSIONER. IF YOU LOOK AT, UH, 2023 TO 2024, YES. THEIR COST, OH, THE INCREASE WAS 3%. IT'S RIGHT AROUND THE SAME 500,000. AND IF YOU LOOK AT 24 TO FY 25, YOU'RE LOOKING AT AGAIN RIGHT AROUND 500,000 INCREASE. THANK YOU. OKAY, NO PROBLEM. ALRIGHTY. SO THE TOTAL EXPENSES SO FAR THIS YEAR IS 9.5 MILLION. WE'RE EXPECTING TO END AT 20000020.1. AND THE NEXT SECTION IS NET REVENUES, UH, REVENUES MINUS EXPENSES. UH, THIS YEAR WE'RE AT 6.7 MILLION OF ACTUALS, HOPING TO END WITH 11.9 MILLION BY THE END OF THE FISCAL YEAR. OKAY. UM, OUR BOND DEBT SERVICE, AS YOU CAN SEE, THE PAYMENT WILL BE $7,502,963. IT HAS NOT BEEN MADE YET, BUT WE TAKE THAT AND SUBTRACT IT FROM OUR NET REVENUES. AND WE'RE LOOKING AT A 1.59 DEBT SERVICE COVERAGE, WHICH WELL COVERS OUR REQUIREMENT OF 1.25, LEAVING US WITH A NET REVENUE OF $4.4 MILLION. [00:10:02] SO IT'S LOOKING PRETTY GOOD, BUT THIS IS ONLY IF THE REVENUE RATE AND THE EXPENSE RATE IS STABLE, IT DOESN'T CHANGE. RIGHT. BUT WE STILL HAVE HALFWAY HERE LEFT, SO THERE'LL PROBABLY BE SOME SURPRISES AT THE END. . AND OTHER THAN THAT, THAT CONCLUDES MY REPORT. ANY QUESTIONS? MAYBE HOLD ON. , UH, THE MARINA SLIP REVENUE IS USED TO MANAGE THE VOLUNT DEBT, THE PAYMENT ON OUR BONDS FOR THE RULE BILL IN 2015. AND I RECOGNIZE THAT NOT ALL OF THE REVENUE THAT IS COMING IN GOES TO THE DEBT SERVICE. SO WE HAVE NANCY MATH HERE, 28 MILLION COMING IN, BUT WE HAVE A DEBT SERVICE OF 7,000,500. THERE ARE OTHER EXPENSES THAT COME FROM THAT TOTAL. DO WE KNOW WHAT I MEAN? AND THIS IS A, AN ESTIMATED SURPLUS FOR THE END OF THIS FISCAL YEAR. WE DON'T KNOW IF THERE COULD BE SOME OTHER FINANCIAL HIT AGAINST THAT SURPLUS. RIGHT. IF THE REVENUE EXCEEDS OUR EXPENSES, IT GOES INTO A BALANCE FUND OF SOME SORT OF MARINA TIDELANDS, NOT TIDELANDS FUND, BUT . YEAH. SO CURRENTLY, UH, DUE TO THE 2015 BOND COVENANT, ANY NET SURPLUS REVENUE GOES INTO A MARINA FUND OR MARINA CAPITAL FUND. AND IT'S SEQUESTERED THERE BY THE 2015 NET SURPLUS REVENUE, UH, CLAUSE. YES. YEAH. GOT IT. NOW, THERE HAVE BEEN NUMBERS SORT OF MENTIONED IN PUBLIC WITH RESPECT TO THE TOTAL AVAILABLE IN THE MARINA CAPITAL FUND. I DON'T KNOW WHAT THAT FIGURE IS THAT'S BEEN ACCUMULATED OVER TIME SINCE THE BOND WAS ISSUED IN 2015. DO WE KNOW WHAT THAT TOTAL ACCOUNT ACCOUNT BALANCE IS? AND THAT'S, THAT'S WHAT, UH, YOU'LL HEAR MENTIONED AS BFA BUDGET FUNDS AVAILABLE, UH, BFA AND THAT, UH, A LOT OF DEPARTMENTS, A LOT OF, UH, BUREAUS HAVE BFAS BUDGET FUNDS AVAILABLE. CORRECT. AND CURRENTLY IT'S ESTIMATED WE HAVE, UH, APPROXIMATELY $33 MILLION BFA IN THE MARINA CAPITAL FUND. THE, THAT IS TECHNICALLY A TIDE FUND, WHICH IS THE, THE MARINA FUND IS A SUB FUND SUB OF THE TIDE FUND. THANK YOU. I ALWAYS HAVE TO SORT OF TAKE AWAY, TAKE THIS IN STEPS. RIGHT, RIGHT. UM, AND THAT MONEY RIGHT NOW IS SEQUESTERED, SEQUESTERED, LIKE THAT WORD DUE DUE TO THE 2015 DEDICATED TO THE, TO THE BOND. CORRECT. AND OTHER MARINA OPERATIONS. CORRECT. WITHIN THE TITLE? WITHIN THE, WITHIN THE SUB FUND. OF SUB FUND. SUB FUND OF THE . SO RIGHT NOW THAT, THAT, THAT BFA, THAT RESERVE, THAT CAPITAL RESERVE, YES. CANNOT BE USED OUTSIDE OF THE MARINE FUND. UH, SO FOR EXAMPLE, RAINBOW HARBOR, WE CANNOT USE OUR MARINA CAPITAL FUND, BFA MONEY FOR IMPROVEMENTS THERE BECAUSE RAINBOW HARBOR IS NOT INCLUDED IN THE MARINA FUND. NOT MARINA. YEAH. THE CONVERSATION RECENTLY HAS BEEN OVER THE USE OF THE MARINA FUND SLIP REVENUE FOR THE BENEFIT OF THE MARINA'S, UM, USERS, WE BOAT OWNERS ASSOCIATION AND RIVER BOARDS AND SUCH. RIGHT. RIGHT. NOW THE, WHAT WAS THE WORD WE LEARNED LAST MONTH? UM, THERE IS A CLAUSE THAT REQUIRES THAT MONEY TO BE AND AS SOON AS THE BOND IS PAID OFF, WHICH THE BOND IS BEING PAID OFF AND THAT, THAT, THAT'S THE BOND. COVENANT IS WHAT YOU, THE COVENANT. THANK YOU. IT'S SUCH A WEIRD EXPRESSION. , THE COVENANT WILL BE RELEASED ONCE THE BOND [00:15:01] IS RENEGOTIATED. THEY PAY OFF THE EXISTING BONDS AND THEN MOVE FORWARD BECAUSE OF THAT ONE ONE LOAN FROM THE STATE OF CALIFORNIA. RIGHT. THAT SORT OF ENTAILED THE WHOLE AMOUNT FOR THE USE OF THE BOAT OWNERS. I'M SORRY? FOR THE MARINA, IS THAT CORRECT? WE WERE OBLIGED TO KEEP THE MONEY WITHIN THE MARINA FUND AND NOT AVAILABLE IN THE GENERAL TIDE. YES. SO YES, THE, THE GOVERNMENT, THE, THE BOND COVENANT WILL BE REPLACED. THE 2015 BOND COVENANT YES. WILL BE REPLACED BY THE 2025 BOND COVENANT. THE, THAT CLAUSE HOLDING THE MONEY, THE NET SURPLUS REVENUE IN THE MARINA FUND, THE MAR WILL BE REMOVED FROM THE COVENANT. YES. 'CAUSE THE ONE REQUIREMENT FROM THE STATE OF CALIFORNIA CORRECT. MINE HOUSE AND WHATEVER THAT'S BEEN PAID OFF. CORRECT. OKAY. BUT THERE'S NO, UM, HEAD CHAIR, THERE'S, THERE'S NO, IT'S STILL GONNA STAY IN THE RAIN FUND PER THE CITY YET IT GIVES THEM THE OPPORTUNITY TO PUT IT IN THE TIDE END FUND BY, I BELIEVE A CITY COUNCIL VOTE THAT AGAIN, WOULD HAVE A PUBLIC OUT PUBLIC INPUT BEFORE THEY WOULD DO THAT. WE'RE STILL GOING TO KEEP OUR FUNDS IN THE MARINA FUND. CORRECT. THE AND I I WILL ADD TO THAT BY SAYING THE MONEY THAT'S BEEN THE BFA FUNDS NOW HAVE ALL BEEN COLLECTED UNDER THAT FORMER COVENANT, I BELIEVE. YES. REVENUE THAT'S COMING UNDER THAT FORMER, SO I WILL MAKE A STATEMENT, AND CORRECT ME IF I'M WRONG, IF IT'S 33 MILLION, THE 33 MILLION MUST STAY WITHIN THE MARINA FUND. ANY FUTURE REVENUE COLLECTED IN SLIP REVENUE CAN BE RELEASED TO THE GENERAL FUND. COULD BE GENERAL NOT TO THE GENERAL FUND THAILAND'S GENERAL FUND. I HAVE TO QUALIFY THAT. IT'S THE THAILAND'S A GENERAL FUND THAILAND'S MONEY. REMEMBER, DON'T, DON'T SAY TIDELANDS IN GENERAL FUND THE SAME. UNDERSTOOD. YEAH. IT'S THE TIDELANDS FUND. IT'S THE UMBRELLA OF A TIDELAND. YES. WHICH WE RECOGNIZE MUST ONLY BE SPENT CORRECT. WITHIN A CERTAIN PART OF THE CITY OF LONG BEACH. UM, BUT CORRECT ME IF I'M WRONG, THE 33 MILLION BFA IS, WAS COLLECTED UNDER THE COVENANT, UNDER THE BONDS THROUGH WHENEVER THE NEW BONDS ARE, YOU KNOW, APPROVED. THE 2015 BONDS ARE PAID AND THE NEW BONDS ARE RELEASED. DO I UNDERSTAND THAT THAT 33 MILLION IS STILL SUBJECT TO THAT COVENANT? I WOULD RESERVE THAT QUESTION FOR THE, UH, FINANCIAL MANAGEMENT DIRECTOR. GREAT. UM, AND YOU WON'T BE SURPRISED BY IT. , WE RECOGNIZE THAT THERE'S A QUESTION REGARDING THAT BFA CORRECT. AND HOW IT COULD BE POTENTIALLY SPENT. CORRECT. WITHIN TIDELANDS, WHETHER IT'S RESERVED FOR THE USE OF THE MARINA FUND UNDER THE FORMER COVENANT AND HOW IT MIGHT BE, SHALL WE SAY, APPROPRIATED THERE, THE POTENTIAL FOR APPROPRIATION FOR THE CITY OF LONG BEACH TO MOVE THE MONEY INTO AVAILABILITY WITHIN OTHER FUNDS. CORRECT. OKAY. THANK YOU. BUT STIPULATE TO MADAM CHAIR THAT, THAT IT WOULD NEVER GO TO A GENERAL FUND. YEAH. RECOGNIZABLE. YEAH, ABSOLUTELY. THAT'S OUR, UM, OUR, UH, PUBLIC TRUST. GOT. OKAY. THANK YOU VERY MUCH FOR LETTING WRAP MY HEAD. THAT MADAM CHAIR. I MOVE THAT, UH, WE, UH, APPROVE THE RECOMMENDATION, UH, OF THE FINANCIAL SUPPORT. I'LL SECOND THAT. THOSE IN FAVOR? OH. PUBLIC. ANY MEMBERS OF THE PUBLIC WILL YOU WISH TO SPEAK ON THIS SUBJECT, ON THIS AGENDA ITEM? SEEING NONE, I WILL. A SECOND. YES. CALL FOR A VOTE. CALL FOR A VOTE. AYE AYE. AND IT'S UNANIMOUS, UH, PUBLIC COMMENT. THIS IS AN OPPORTUNITY FOR MEMBERS OF THE PUBLIC TO ADDRESS THE MARINE ADVISORY COMMISSION FINANCE COMMITTEE ON NON AGENDA ITEMS. EVERYONE IS LIMITED TO THREE MINUTES TO MAKE THEIR COMMENTS UNLESS EXTENDED BY THE CHAIR. THERE ARE NO COMMENTS FROM MEMBERS OF THE PUBLIC. ARE THERE ANY ANNOUNCEMENTS MOVING ON, ARE THERE ANY ANNOUNCEMENTS ON THE MATTER, UH, ON WITHIN THE, THE PURVIEW OF THE MARINE ADVISORY COMMISSION'S FINANCE COMMITTEE? NO, MA'AM. SEEING NONE, I'LL RESPECTFULLY ADJOURN THIS MEETING AT 2 0 5. * This transcript was created by voice-to-text technology. The transcript has not been edited for errors or omissions, it is for reference only and is not the official minutes of the meeting.