Financially Strapped Cities Looking to Wealthy Port District for Funds

Saying we need “a lot more money than we’re getting,” the mayors of the five cities making up the San Diego Unified Port District asked the port Wednesday to pay a larger share for police and fire protection and a range of other services that cities have provided for years on port property.

The request, in a letter signed by the mayors of Chula Vista, Coronado, National City, Imperial Beach and San Diego, was sent to Milford Portwood, Port District chairman.

Member cities provide routine city services on property owned by the Port District, part of which is reimbursed. But now the cities--seeing a way to save funds for themselves--are asking the port to pay them more for those services.

Many of the city officials said they hope their request will be accommodated in three months, but few were willing to give an exact dollar figure on how much they need. However, if full reimbursement was made to the five cities it would amount to millions of dollars.

“This has been in the works for quite a long time,” said John Clingan, acting mayor of Imperial Beach. “It’s not something we just came up with.

“We’ve been talking to port commissioners for at least six months. We’re looking for broader reimbursement--more money, if you will--for services that take place within the city but on port district property.

“I think most of the cities feel we’re entitled to a lot more money than we’re getting for most of the services.”

Portwood said the district is considering their request and he understands why the cities went to the district for more money. “It’s coming up now because the cities are broke,” he said.

Paul Downey, a spokesman for San Diego Mayor Maureen O’Connor, called the Port District the “wealthiest public agency in the region” and one that is “able to pay their fair share of expenses.”

Downey said San Diego provides a range of services to the port, such as police and fire protection and maintenance of parks, libraries and streets.

Downey said discussions with port commissioners about the reimbursement request began last fall.

“All of the cities are having budgetary problems,” Downey said. “In San Diego, we’re looking at a $60-million shortfall (for the 1991 fiscal year). The city manager says we need operating revenue of $492 million just to maintain services. We’re expecting $432 million. So, we’re hoping the port will embrace this reimbursement idea and help us formulate a plan.”

Portwood said the cities’ request would be the lead agenda item at the district’s next meeting, on April 24. He said the port would like to “give all it can,” provided it can do so legally.

“We may have some legal problems with (greater) reimbursement,” Portwood said. “Basically, the state tells us how we can spend our money. It’s true the port is in a position to do a lot for the area, and we’re planning on doing a lot.”

Portwood said the main service provided by member cities is law enforcement, the cost of which has escalated in recent years.

He said the port’s net revenues now exceed its expenditures by more than $40 million a year. He said the port’s “healthy” profits come from real estate, hotels, Lindbergh Field, shipping and marina operations.

“It’s time we got together and agreed on how best to spend this money for the benefit of all of us,” Portwood said.

Still, he sees the primary sticking point of the mayors’ request as legal.

“Whatever proposal we agree on has to be within the parameters set by the state,” he said. Portwood said he will meet with the state attorney general and other state authorities to determine “what we can and can’t do.”

Jack McGrory, the assistant city manager of San Diego, said the San Diego city attorney has reviewed the legal implications of the cities’ request, and “we feel the approach we’re taking is well within state law.”

McGrory declined to say how much money San Diego spends annually for services rendered to the port.

Mary Herron, the mayor of Coronado, said her city provides $500,000 a year in port-related services. She listed those as police and fire protection, beach maintenance, street and sewer maintenance, even library upkeep. She said the amount of direct reimbursement paid by the port to Coronado is no more than $75,000 a year.

“We’ve all been talking with them for a while about this,” Herron said.