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HomeMy WebLinkAboutReg 2010-12-06 Item 5B.2 - Public Hearing - Resolution Adopting 2011-2016 Financial Planning Model / Capital Improvement Program COUNCIL AGENDA SYNOPSIS !-Y Inztaalr ITEM IVO. d 4A Ni Meetuzn Date Prepared by 1 M or review Councal revzeav 1:5 ..�t ,r te :r G 1 11/22/10 1 S H 1 1W AR 1 5. g 0i 2 if 12/06/10 I SH q 90• I I I I 1 6.6 1 2 ITEM INFORMATION I CAS NUMBER: 10-131 I ORIGINAL AGENDA DATE: NOVEMBER 22, 2010 AG] ND,\ ITEM TITLE An Ordinance adopting the 2011 -2012 biennial budget, and a resolution adopting the 2011 -2016 capital improvement plan. C. I'I?GORY Discussion Motion Resolution Ordinance But' Award Public Hearing I 1 Other Mt Date 11/22/10 Mtg Date Mtg Date 12/6/10 Mtg Date 12/6/10 Mtg Date Mtg Date 11/22/10 Mtg Date SPONSOR n Council n Ma Adm Svcs E DCD Finance Fire Legal P&R Police PIY/ SPONSOR'S City Council is being asked to approve an ordinance adopting the 2011 -2012 biennial SUMMARY budget, and a resolution adopting the 2011 -2016 Capital Improvement Plan. These items are scheduled for Council consideration at the 11/22/10 C.O.W. and 12/06/10 Regular Council meeting. RI. viiAvi BY COW Mtg. 1 1 CA &P Cmte F &S Cmte Transportation Cmte Li Utilities Cmte n Arts Comm. n Parks Comm. n Planning Comm. DATE: 11/16/2010 RECOMMENDATIONS: SPONSOR /ADMIN. Finance /Public Works COMMITTEE unanimous approval Forward to COW COST IMPACT FUND SOURCE EXPrNDITURE REQUIRED AMOUNT BUDGETED APPROPRIATION REQUIRED $284,108,685 $0 $284,108,685 Fund Source. MISCELLANEOUS FUNDING SOURCES, SEE DETAIL. Co,n,nen MTG. DATE RECORD OF COUNCIL ACTION I 11/22/10 Forward to the next Regular Meet 12/06/10 MTG. DATE ATTACHMENTS 11/22/10 Informational Memorandum dated 11/18/2010 (revised after FS meeting) Draft Ordinance Draft Resolution City of Tukwila, 2011 -2012 Biennial Budget Changes (spreadsheet) Minutes from the Finance Safety Committee Meeting of 11/16/10 12/06/10 Ordinance in final form (final budget figures provided 12/1/10) Resolution in final form, Info Memo, Attachment A, 3 revised CII' pages Documentation from 11/22 C.O.Q. packet: (11/18 Info Memo and FS Minutes) 23 24 w Aso o 'S %1 1� 1908 City of Tukwila Washington Resolution No. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, ADOPTING THE 2011 -2016 FINANCIAL PLANNING MODEL AND THE CAPITAL IMPROVEMENT PROGRAM FOR GENERAL GOVERNMENT AND THE CITY'S ENTERPRISE FUNDS. WHEREAS, when used in conjunction with the biennial City budget, the Capital Improvement Program (CIP) and the Financial Planning Model for the period 2011 -2016 are resource documents to help plan directions the City will consider for the future; and WHEREAS, the Financial Planning Model and Capital Improvement Program are not permanent fixed plans, but are guidelines or tools to help reflect future goals and future resources at the time budgets are being plaluled; and WHEREAS, the cominitment of funds and resources can only be made through the budget process; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, HEREBY RESOLVES AS FOLLOWS: Section 1. The City Council hereby adopts the 2011 -2016 Financial Planning Model and accompanying Capital Improvement Program, incorporated by this reference as if fully set forth herein. Section 2. A copy of the 2011 -2016 Financial Planning Model and accompanying Capital Improvement Program shall be kept on file in the City Clerk's Office. Section 3. The assumptions, revenues and expenditures will be reviewed and updated annually, or as necessary, by the City Council. Section 4. The detail of Capital Improvement Program projects will be reflected in the published Financial Planning Model and Capital Improvement Program 2011 -2016. PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, at a Regular Meeting thereof this day of 2010 ATTEST/ AUTHENTICATED Dennis Robertson, Council President Christy O'Flaherty, CMC, City Clerk APPROVED AS TO FORM BY Filed with the City Clerk: Passed by the City Council. Office of the City Attorney Resolution Number Attachment: Financial Planning Model and Capital Improvement Program 2011 -2016 W Word Processing Resolutions \Financial Planting Model ClP 2011 -2016 doc GLntrlt 12/01/2010 Page 1 of 1 27 28 ILA 1, �s City of Tukwila 3 a Jim Haggerton, Mayor 1906 INFORMATIONAL MEMORANDUM TO: Mayor Haggerton City Council FROM: Gail Labanara, Public Works Analyst Peggy McCarthy, Deputy Finance Director -A, '1L- DATE: December 1, 2010 SUBJECT: 2011 2016 Financial Planning Model Capital Improvement Program ISSUE Updated Financial Planning Model and Capital Improvement Program (CIP). BACKGROUND Council requested that Attachment A include the actual activity from 2008 and 2009 and the estimated projections and budget from 2010 We also have updates for specific CIP pages. ANALYSIS Attached is the latest version for Attachment A. There will be some additional adjustments as we finalize Attachment B and incorporate those numbers into Attachment A. Three CIP pages have been changed from the Proposed CIP and have been attached for reference. Below are the changes made to Attachment A compared to the Proposed Attachment A. Added 2008, 2009, 2010 Projection, and 2010 Budget for historical reference. Incorporated $1 million in decreased Health Insurance Premiums into O &M Expenditures (Att B). D Incorporated $2.2 million in Program Reductions into O &M Expenditures (Att B). Incorporated $900k (50 in Other Revenues /Exp Reductions into O &M Expenditures (Att B). Incorporated Howard Hanson Dam into General Government 303 Fund (see new CIP page). Combined Bridges and Arterial Streets as now budgeted together in 104.98 for Project Accounting. New CIP page 10 for TUC Pedestrian Bridge (recently received a $500k grant). New CIP page 51 for Duwamish Gardens (updated at 11/1 Transportation Committee). RECOMMENDATION Information for adoption of the 2011 -2012 Biennial Budget Ordinance and the Resolution for the 2011 -2016 Financial Planning Model and Capital Improvement Program. Attachments: Attachment A New CIP page 83 Tukwila Levee Repairs for Howard Hanson Dam Flood Response TUC Pedestrian Bridge, page 10 CIP page Duwamish Gardens, page 51 CIP page H: \CIP \Info Memo Final Att A for 12 -6 -10 Council.doc 2 9 30 ATTACHMENT A CITY OF TUKWILA TOTAL REVENUES EXPENDITURES 2011 2016 Analysis in 000's 2010 2008 2009 Projec- 2010 REVENUES (see A -1) Actual Actual tion Budget 2011 2012 2013 2014 2015 2016 Totals General Revenues Sales Tax 18,209 14,739 14,822 15,502 15,400 15,631 15,865 16,103 16,587 17,084 96,670 Property Taxes 11,116 12,190 13,395 12,400 12,800 13,120 13,448 13,784 14,129 14,482 81,763 Utility Taxes 4,262 4,942 4,646 4,747 4,500 4,635 4,774 4,917 5,065 5,217 29,108 New Revenues 3,000 3,000 3,075 3,152 3,231 3,311 3,394 19,163 Other Revenue Incr /Exp Red 900 922 945 969 993 2,037 6,766 One -time sale of property 2,000 0 0 0 0 0 2,000 Interfund Utility Taxes 0 1,813 1,527 2,600 1,349 1,431 1,559 1,651 1,770 1,862 9,622 Gambling Taxes 2,176 2,568 2,139 2,099 1,977 2,036 2,097 2,160 2,225 2,292 12,788 Contract Agreement SCL 1,845 1,967 1,998 1,976 1,976 2,035 2,096 2,159 2,224 2,291 12,782 Charges /Fees for Services 4,592 2,727 4,067 5,273 5,431 5,594 5,762 5,935 6,113 6,296 35,131 Transfers In Other Funds 1,568 1,857 2,306 2,493 1,875 1,931 1,989 2,049 2,110 2,174 12,128 Intergovernmental Revenue 330 3,572 1,332 922 922 950 978 1,007 1,038 1,069 5,964 Other Taxes /Miscellaneous 1,604 2,793 1,670 1,640 1,640 1,689 1,740 1,793 1,846 1,901 10,610 Subtotal 45,703 49,169 47,903 52,652 53,770 53,050 54,406 55,759 57,411 60,098 334,493 Dedicated Revenues (Capital) Real Estate Taxes 830 257 437 500 250 258 265 273 281 290 1,617 Motor Vehicle Taxes 412 393 339 455 455 469 483 497 512 527 2,943 Investment Interest/Misc. 509 136 89 500 100 103 106 109 113 116 647 Property Taxes 85 12 33 130 130 130 130 130 130 130 780 Parking Taxes 148 156 143 140 140 140 140 140 140 140 840 Transfers from Golf Course 0 0 0 0 0 0 150 150 175 175 650 Subtotal 1,984 954 1,040 1,725 1,075 1,100 1,274 1,299 1,351 1,378 7,477 TOTAL REVENUE AVAIL 47,686 50,123 48,943 54,377 54,845 54,150 55,680 57,058 58,762 61,477 341,969 EXPENDITURES Operations Maintenance: 43,984 44,641 42,271 45,376 44,301 44,901 47,001 49,197 51,494 54,915 291,809 1 (See Attachment B) Debt Service 1,844 2,094 2,463 2,466 3,455 3,447 3,532 3,593 3,104 2,874 20,005 Transfers to Reserve Fund 0 0 0 0 1,256 2,573 3,958 5,406 0 0 13,193 Estimated underfunded PERS 0 0 0 0 772 803 835 868 903 939 5,120 Admin /Engineering Overhead 425 497 515 300 300 309 318 328 338 348 1,941 Subtotal Available 1,433 2,891 3,693 6,235 4,761 2,117 36 (2,334) 2,923 2,401 9,901 Capital Attachment C Residential Streets 0 0 78 0 150 300 0 200 300 3,000 3,950 Arterial Streets /Bridges 803 5,560 1,769 3,748 2,181 2,837 2,522 2,390 2,865 1,945 14,740 Parks Trails 1,137 0 408 662 433 459 438 267 217 21 1,835 General Government Facilities 917 193 17 108 101 0 0 0 0 0 101 General Improvements /HHD 680 2,612 2,488 2,700 2,200 800 500 500 500 500 5,000 Fire Improvements 0 0 0 (50) (50) (50) 0 0 0 (55) (155) Subtotal Capital 3,536 8,365 4,761 7,168 5,015 4,346 3,460 3,357 3,882 5,411 25,471 Balance by Year (2,103) (5,474) (1,068) (933) (254) (2,229) (3,424) (5,691) (959) (3,010) (15,567) Carryover 28,659 26,556 21,082 22,639 20,109 0 0 0 0 0 20,109 'Accumulated Totals 26,556 21,082 20,014 21,706 19,855 17,627 14,202 8,511 7,551 4,540 1 VI I 31 2011 2016 Financial Planning Model 1 2/01/2010 CITY OF TUKWILA CAPITAL PROJECT SUMMARY 2011 to 2016 PROJECT: Tukwila Levee Repairs Maintenance PROJECT NO. 10901301 DESCRIPTION: Remove temporary flood control measures and restore property along the levee. The US Army Corps of Engineers notified Valley cities that the Howard Hanson Dam sustained damage JUSTIFICATION: during the January 2009 flood event. Available flood storage was reduced resulting in potential increased release rates and possible flooding of the Green River Valley. STATUS: Temporary containment measures were installed in 2009 that included Hesco walls and Super sacks. MAINT. IMPACT: Increased flood patrol and maintenance inspection of the temporary measures. The US Army Corps of Engineers expects to restore full storage volume of the Howard Hanson Dam in COMMENT: 2011 Direction from the Corps to remove the temporary measures is expected in 2011. The trail will also need repair and overlay due to the damage from containment placement. FINANCIAL Through Estimated (in $000's) 2009 2010 2011 2012 2013 2014 2015 2016 BEYOND TOTAL EXPENSES Engineering 200 200 Land (R /W) 0 Const Mgmt 200 200 Construction 1,300 300 1,600 TOTAL EXPENSES 0 0 1,700 300 0 0 0 0 0 2,000 FUND SOURCES Awarded Grant 0 Proposed Grant 0 Mitigation Actual 0 Mitigation Expected 0 City Oper. Revenue 0 0 1,700 300 0 0 0 0 0 2,000 TOTAL SOURCES 0 0 1,700 300 0 0 0 0 0 2,000 mrmrc_ 10 Project Location j t- Agl v.firr sti- 1 ,7,1*0 „Iii __,..„r--nowequin a. Abk GIs J 3 2 2011 2016 Capital Improvement Program 83 CITY OF TUKWILA CAPITAL PROJECT SUMMARY 2011 to 2016 PROJECT: Tukwila Urban Center Pedestrian /Bicycle Bridge Project No 90510403 DESCRIPTION: Construct a new pedestrian /bicycle bridge over the Green River. JUSTIFICATION: Pedestrian /bicycle connection between Tukwila's Urban Center and commuter rail /Amtrak station. Supports local and regional goals and policies regarding land use and transportation in Urban Center STATUS: Pedestrian System Report has identified the optimal location for bridge crossing to be south of the Best Western Hotel. Type, Size, and Location Report to be completed in 2011 MAINT. IMPACT: To be determined. State Enhancement design grant for $190,000 and Transit Oriented Development (TOD) planning grant COMMENT: of $55,000 PSRC grant of $500k for final design Project is on Park Impact Fee list with funding of $2 million with an 80 %120% split. FINANCIAL Through Estimated (in $000's) 2009 2010 2011 2012 2013 2014 2015 2016 BEYOND TOTAL EXPENSES Design 227 1 517 745 Land (R/W) 100 100 Const. Mgmt. 1,000 1,000 Construction 6,520 6,520 TOTAL EXPENSES 227 1 517 0 0 100 7,520 0 0 8,365 FUND SOURCES Awarded Grant 227 1 517 745 Proposed Grant 5,200 5,200 Mitigation Actual 0 Park Impact Fees Expected 80 1,520 1,600 City Oper Revenue 0 0 0 0 20 800 0 0 820 TOTAL SOURCES 227 1 517 0 0 100 7,520 0 0 8,365 Project Location \r„ a •rte 6,6fi J:9 v I 'Al: 0 81605[ 8 ..24 I. 1 6 I I e..AgL_ s 6Ntl g. 1 �',_r a is ee® c b T rec k 6e.. upiea o r Mltllantlo w 1 m ZW E 4 Tmane or r g silos ttt a tio✓' i T fir t GIS Tukwila 2011 2016 Capital Improvement Program 1 3 3 CITY OF TUKWILA CAPITAL PROJECT SUMMARY 2011 to 2016 PROJECT: Duwamish Hill Preserve Project No. 90330109 Land development for this 8.6 acre parcel will preserve open space and allow future restoration for this passive DESCRIPTION: public park at 3800 S 115 St. (Previously known as Duwamish Riverbend Hill, Poverty Hill and Grandmother's Hill.) JUSTIFICATION: Meets the Parks and Open Space Plan providing cultural and historical value along the City's shoreline. Phase I development began in 2008 and was completed in 2010. In 2011, volunteers and staff will continue to seed and plant various areas to enhance the preserve; consultants will perform historical and environmental STATUS: evaluations from the balance of the STA mitigation funds. Staff will seek grant funds in a partnering effort with the Cascade Land Conservancy and the Friends of the Hill citizen's group for acqusition and development of Phase II. A donation of 209' of riverfront property is expected in 2011. MAINT. IMPACT: Phase II is on Park Impact Fee list for $2 million with an 80 %/20% split. Sound Transit mitigation of $313k for COMMENT: construction site. Grant for $220,000 from Recreation Conservation Office (RCO). Future grants from RCO, King Conservation District, and more with REET funds as a match. FINANCIAL Through Estimated (in $000's) 2009 2010 2011 2012 2013 2014 2015 2016 BEYOND TOTAL EXPENSES Design 216 14 25 25 200 480 Land (R /W) 975 1,000 450 2,425 Const. Mgmt. 607 607 Construction 18 158 25 25 25 4,050 4,301 TOTAL EXPENSES 1,209 172 50 50 1,025 0 0 0 5,307 7,813 FUND SOURCES Awarded Grant 1,155 1,155 Proposed Grant 750 1,400 2,150 Mitigation 313 313 Park Impact Fees 93 93 Park Impact Fees Expected 15 93 25 25 70 70 70 1 ,282 1,650 REET 1 (1st Qtr Percent) (259) 64 (43) 25 250 (70) (70) (70) 2,625 2,452 TOTAL SOURCES 1,209 172 50 50 1,025 0 0 0 5,307 7,813 Project Location o.,.., o e ve N i u p)v% s 1 z St 16 ti t 4.V Y i n m m s i .I 1 "11,1, q 0 0 1 _pk k 1 2 5 l(i _tl I 7 3 4 2011 2016 Capital Improvement Program 51 ��)ILA 4 ma City o Tukwila a Ni 1 Jim Haggerton, Mayor 29o� INFORMATIONAL MEMORANDUM TO: Mayor Haggerton Finance and Safety Committee FROM: Shawn Hunstock, Finance Director DATE: November 18, 2010 (Revised after Finance and Safety Committee) SUBJECT: 2011 -2012 Biennial Budget Ordinance 2011 -2016 Financial Planning Model Capital Improvement Program ISSUE Council must adopt the 2011 -2012 biennial budget and 2011 -2016 Capital Improvement Plan by the end of December. This typically happens with the first Regular meeting in December. BACKGROUND The proposed preliminary budget for 2011 -2012 and draft 2011 -2016 CIP were presented to Council on October 4, 2010. Since that time, there have been a number of meetings to discuss items within the budget and CIP, as well as detailed review by all Council committees during the month of October. Council also held a special budget workshop on October 19, 2010. DISCUSSION The proposed 2011 -2012 biennial budget reflects the adjustments presented to Council as part of the City's "three- legged stool" approach to dealing with the current financial crisis. Program and service reductions have been included in the relevant departments, as well as related revenue increases. New revenue sources were adopted by Council, including the Revenue Generating Regulatory License fee. Also, steps were taken to address the cost of employee compensation. The final budget document will include a savings of approximately $1.2 million per year in contributions to the City's self insurance fund. The attached "Summary of Proposed Revisions to Preliminary Budget" provides a high level summary of proposed changes since the Preliminary Budget was presented in early October. This matrix tracks where we are with regard to meeting our "three- legged stool" targets for increased revenue, program reductions and cost of compensation. Overall budget savings have increased by just over $200,000 compared to the October Preliminary Budget. A more detailed listing of changes to the October Preliminary Budget is also attached, and will be reviewed at the November 22 Committee of the 35 INFORMATIONAL MEMO Page 2 Whole meeting. These changes will include, among other items, any agreed to COLA reductions from represented and non represented employees. RECOMMENDATION The Finance and Safety Committee is being asked to approve the 2011 -2012 biennail budget ordinance and the 2011 -2016 Financial Planning Model and Capital Improvement Plan resolution and forward to the Committee of the Whole. This item is scheduled for the November 16 Finance and Safety Committee meeting, the November 22 Committee of the Whole meeting, and the December 6 Regular Council meeting. ATTACHMENTS Summary of Proposed Revisions to Preliminary Budget Draft Budget Ordinance Draft CIP Resolution City of Tukwila, 2011 -2012 Biennial Budget Changes (spreadsheet) 3 6 W'12010 InfoMemos\Biennial Budget OrdinanceSJL.doc SUMMARY OF PROPOSED REVISIONS TO PRELIMINARY BUDGET 22- Nov -10 TARGET PRELIMINARY REVISED CHANGE FROM BUDGET PROPOSAL PRELIMINARY BUDGET INCREASED REVENUE 3,400,000 3,000,000 3,000,000 PROGRAM REDUCTIONS 2,200,000 3,809,851 3,410,866 Boards and Commissions 27,450 27,450 City Council 5,000 10,000 Travel budget reduced $5,000 (10- 19 -10) Mayor's Office 339,400 339,400 DCD 475,810 468,787 Code Enf admin supt restored (11- 15 -10) Eliminate graphics /mapping retain $18K Municipal Court 66,631 66,631 Human Services 45,800 30,000 Contingency fund restored (11- 15 -10) Information Technology 186,500 114,500 Hazelnut restored 3X per year (11- 15 -10) Public Works 605,050 605,050 Parks and Recreation 744,500 744,500 Foster Golf Course 62,000 62,000 Police Department 502,600 502,600 Fire Department 534,909 225,747 3 firefighter positions restored (11 -8 -10) Tukwila Pool 100,000 100,000 Human Resources Department 28,000 28,000 Finance Department 86,201 86,201 COST OF COMPENSATION 3,400,000 1,000,000 1,617,222 Reduced contribution to health fund 1,000,000 1,225,000 Based on R.L. Evans recommendation Firefighters wage freeze 212,736 Based on Memorandum of Agreement Non -rep employees wage freeze 179,486 Proposed TOTAL NEW REVENUE COST SAVINGS 9,000,000 7,809,851 8,028,088 w Finance Safety Committee Minutes November 16, 2010 Page 2 Today's assessed value represents a decrease of 2.9% compared to last year, and staff is recommending levying a full 1% increase to property taxes due to a negative Implicit Price Deflator. In order to levy the full 1 Council will need to pass a resolution declaring a finding of substantial need relating to the property tax levy. A public hearing is scheduled for November 22, 2010. UNANIMOUS APPROVAL. FORWARD TO NOVEMBER 22 COW FOR PUBLIC HEARING AND DISCUSSION. C. Legislation Reaardina Budget CIP Staff is seeking Council approval of an ordinance amending the 2010 Budget; an ordinance adopting the 2011 -12 Biennial Budget; and a resolution adopting the 2011 -16 Capital Improvement. Each item is discussed in more detail below. Ordinance Amending the 2010 Budget As required by the Revised Code of Washington, staff is seeking Council approval of an ordinance amending the 2010 Budget. The amendment includes many items that have been discussed and addressed throughout the year. Both the property taxes and business license revenue line items are over budget by slightly more than $400,000 total. This coverage will help fund additional expenses outlined in the budget amendment. The items, explained in detail in the Informational Memo included in the November 22 Finance Safety Committee agenda packet, include: Project deficits in Finance, Legal, Community Development, Court, Fire, and Parks Maintenance Bond Revenue for Southcenter Parkway and Emergency Response Equipment Debt Service on tax exempt bonds issued UNANIMOUS APPROVAL. FORWARD TO NOVEMBER 22 COW FOR DISCUSSION. Ordinance Adopting the 2011 -12 Biennial Budget Staff is seeking Council approval of an ordinance adopting the 2011 -12 Biennial Budget. Shawn Hunstock reported that the City will be adopting two single year budgets rather than one 24 -month budget. This makes the process of adjustments, amendments and forecast much more efficient. As the City Council has been conducting ongoing review of the 2011 -12 Biennial Budget 2011 -16 CIP, there was minimal discussion on the draft ordinance which adopts the budget. UNANIMOUS APPROVAL. FORWARD TO NOVEMBER 22 COW FOR DISCUSSION. A Resolution Adopting the 2011 -2016 CIF Staff is seeking full Council approval of a resolution adopting the 2011 -2016 CIP. As the City Council has been conducting ongoing review of the 2011 -12 Biennial Budget 2011 -2016 CIP, there was minimal discussion on the draft resolution which adopts the 2011 -2016 CIP. UNANIMOUS APPROVAL. FORWARD TO NOVEMBER 22 COW FOR DISCUSSION. D. City Investments As per City policy, staff provided the quarterly update to the Committee regarding City investment reports. Report details begin on page 37 of the Committee agenda packet and demonstrate what the City currently has in its portfolio. Peggy McCarthy also briefed the Committee on an investment policy for the City which was last seen by the Committee on June 22, 2010. At that meeting, staff reported that the City's revised investment policy was submitted to the Washington Municipal Treasurers Association (WMTA) for certification and they were awaiting return of the policy prior to coming forward to Committee for approval. Staff has not yet heard from WMTA and is requesting Committee approve the policy in the meantime in order to begin policy implementation. 3 8 The draft policy remains the same as it was in June with the exception of Section 11.1: Maturities, which will now call for a minimum of 30% of the of the City's portfolio to be comprised of investments