HomeMy WebLinkAboutSpecial 2013-07-30 Index 3B - Capital Facilities Element - Formatted VersionCHAPTER FOURTEEN
CAPITAL FACILITIES ELEMENT
TUKWILA COMPREHENSIVE PLAN
TUKWILA
L.IORA RY
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CAPITAL FACILITIES
CAPITAL FACILITIES
WHAT YOU WILL FIND IN THIS CHAPTER:
• A description of how and why capital facilities are planned;
• A discussion of the funding methods and challenges facing the City; and
• Goals and Policies for providing adequate levels of service.
"Tukwila makes a commitment that the land use intensities and pattern
of uses are appropriate for the community and that its adopted levels of
service will be met and maintained."
PURPOSE
GROWTH MANAGEMENT ACT CAPITAL FACILITY PLANNING REQUIREMENTS
This element of the Comprehensive Plan presents the goals and policies for Tukwila's Capital
Facilities. Capital Facilities Planning under the Growth Management Act (GMA) requires an
inventory of public facilities and their capacities; establishment of a minimum acceptable level
of service for the community; a list of needed capital projects to serve growth and that maintain
the standards; a realistic financing plan; and stipulation that adjustment of the Plan will occur if
funding is inadequate or if growth requires previously unanticipated expansion. In adopting its
Comprehensive Plan and the supporting documents, Tukwila makes a commitment that the land
use intensities and pattern of uses are appropriate for the community and that its adopted levels of
service will be met and maintained.
The GMA Capital Facilities Plan for Tukwila consists of:
1. The Comprehensive Plan Capital Facilities goals and policies;
2. The Capital Facilities Element Background Report, which contains a discussion of the City's
growth targets for the Comprehensive Plan's planning period to 2030;
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CAPITAL FACILITIES
Why Plan for Capital Facilities?
Under GMA, the City is required to include a
capital facilities element in its Comprehensive
Plan. The Capital Facilities Element and
associated Capital Facilities Plan describe
how public services will be provided and
financed. Capital facilities planning also helps
local jurisdictions manage their limited funds
to provide the greatest value to their residents
and take full advantage of available funding
opportunities.
What is Concurrency?
"Concurrency" exists when adequate public
facilities or services are in place to serve
new development. Specifically pertaining to
streets and utilities in Tukwila, concurrency
requirements are intended to prevent new
development from outpacing Tukwila's ability to
provide the improvements that are needed to
serve the new development. New development's
infrastructure demands can result in congestion
or overcrowding that will impact new and
existing residents alike, if improvements are not
made in time. Concurrency is often referred to
as a pass or fail test for a new development.
3. The City's Capital Improvement Program/Financial
Planning Model (CIP/FPM) which includes projects for the
six year period and projects to address community needs
and maintain standards to 2030; The Comprehensive
Plan's goals cannot be carried out unless the supporting
infrastructure can be financed. The CIP/FPM addresses
how specific projects and facilities will be financed and
provides a current assessment of the City's financial
capacities and limitations; and
4. The systems plans and their regular updates, such as
the Nonmotorized Plan, the Fire Master Plan, the Parks,
Recreation and Open Space Plan; the Surface Water Plan;
the Water Plan, the Sewer plan, the Transportation Plan,
the Fire Services Plan, the City Buildings Plan; all of which
are adopted by reference as part of this Comprehensive
Plan.
A key concept of the GMA and capital facilities planning is
concurrency—that specific public facilities will be available
when the impacts of development occur, or within ten years
of the development. Concurrency in Tukwila is supported
through policy, systems planning and implemented in current
regulation.
Tukwila's public facility needs are served not only by City
facilities but also by regional agencies such as the Washington
State Department of Transportation, Sound Transit, King
County, and the Port of Seattle; and by special purpose
districts, such as Tukwila School District, King County
Library System, Valley View Sewer District, and Highline
Water District. (See also the Utilities Element.) In addition
to maintaining adequate levels of service on City provided
facilities, the City of Tukwila must coordinate with these special
purpose districts and regional providers on Tukwila's growth
and land use planning.
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CAPITAL FACILITIES
CAPITAL FACILITY PLANNING IN TUKWILA
Capital facilities planning in Tukwila is separated into two different types of funds:
• General Government Funds, which include special revenue and capital projects funds for
general capital needs, such as residential streets, arterials, buildings, parks and trails, and other
improvements.
• Enterprise Funds, which include funds for which fees are received in exchange for specific goods
and services. In Tukwila this includes water, sewer, surface water, and the Foster Golf Course.
GENERAL GOVERNMENT FACILITIES FUNDS
General government facilities are designed, built and operated for the general public, unlike
enterprise funds, which serve specific fee paying customers. Any person may drive on City
streets, walk on a trail, play in a City park, be served by fire and emergency aid, etc. Tukwila does
capital improvement planning by organizing its general government facilities needs into similar
programmatic categories, which are referred to as funds. The following funds are the largest in
terms of number of projects and funding levels:
• The Residential Streets Program Fund is for transportation -related projects
specifically identified for street improvement in residential neighborhoods
and includes lane widening, curbs and gutters, sidewalks, illumination and
undergrounding utilities. Said funds shall come from the City's General Fund.
• The Bridges and Arterial Streets Program Fund is the Transportation Improvement
Program, which is designed to correct deficiencies in arterial streets and traffic operations.
The program uses City funds, grants, real estate excise tax, parking tax, developer
funds, local improvement district funds, impact fees and mitigation payments.
• The Land Acquisition and Park Development Program Fund uses City funds, grants, real estate
excise tax and impact fees for parks, trails, recreational facilities and fisheries projects.
• The Facilities Program Fund is for the replacement of existing general
government facilities and includes the Tukwila Village project, which is an urban
renewal/redevelopment project on Tukwila International Boulevard.
• The General Improvements Fund is designated for minor capital improvements
not related to parks, land acquisition or major building replacements and included
the emergency levee costs associated with the Howard Hanson Dam repair.
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General government sources of funds and expenditures are illustrated in Figure 14-1.
2011 General Government Funds
Revenue Sources
Miscellaneous
Charges for
Services
0°%a
Taxes
4%
2011 General Government Funds
Expenditures Residential
Parks/Trails Streets
0% 0%
General Govt
5%
Arterial
Streets/Bridges
95%
Facilities
0%
Figure 14-1: General government sources of funds and expenditures.
ENTERPRISE FACILITIES FUNDS
Enterprise Funds are supported by revenues generated by user fees and charges. Grants and
developer contributions supplement the Water, Sewer, and Surface Water Funds, and the Foster
Golf Course is self-supporting. Enterprise funds are used by public agencies to account for
operations that are financed and operated in a manner similar to private business enterprises.
They are established as fully self-supporting operations with revenues provided primarily from
fees, charges, or contracts for services and require periodic determination of revenues earned,
expenses incurred, and net income for capital maintenance, public policy, management control and
accountability.
In order to provide for the short-term and long-term operating and capital needs of the water,
surface water and sewer utilities, the City evaluates and utilizes a combination of revenue sources,
such as utility rates, bonds, loans, grants, developer contributions, Public Works Trust Fund loans,
and local improvement districts (LIDs.)
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CAPITAL FACILITIES
2011 Enterprise Funds Revenue
Sources
Other
ros.3
2011 Enterprise Funds Expenditures
Golf
Figure 14-2: Enterprise capital sources of funds and expenditures.
An example of enterprise capital sources of funds and expenditures is illustrated in Figure 14-2.
• Water and Sewer Funds — Slightly more than 50 percent of the area of the City is
served by Tukwila Water and Sewer Utilities. The remainder of the City is either not
served or served by other districts. In order to provide infrastructure in the unserved
portions of the City, additional revenue is needed in order to extend service to these
areas. Available revenue sources include local improvement districts, grants, Trust Fund
loans, rate increases, customer contributions, and general fund loans or transfers.
• Surface Water Fund — The Surface Water Enterprise Fund identifies projects needed to
correct surface water deficiencies and accounts for operations and capital improvements for
the City's storm drainage and surface water management function. Surface Water projects
are required to meet Federal, State and local mandates. Much of the infrastructure required
will be paid for by developers, local improvement districts, and possibly some grants,
but the largest contributor to the surface water enterprise fund is the City of Tukwila.
• Foster Golf Course — This is a publicly owned facility funded by operating revenues, that
is, user fees; citizens' general obligation bonds; Councilmanic bonds; as well as, sale of
merchandise, and transfers in from the General Fund. It will be able to meet its capital and
operating needs over the 20 -year planning period and maintain a rate structure competitive with
nearby municipal courses. All capital improvements will be funded from the above mentioned
revenues. The Golf Enterprise Fund accounts for operation, maintenance, and improvements
of the municipal golf facility. The difference between the Golf Enterprise Fund and other utility
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enterprise funds is that the Golf Fund serves voluntary customers as opposed to the users
of the water, sewer, and surface water funds who have no choice in service provider.
RELATIONSHIP TO OTHER PLANS
Capital facility planning is related to a variety of other long-range, sub -area, and system plans
adopted by the City. Figure 14-3 illustrates how these various plans are interrelated.
LONG-RANGE PLANS
Strategic Plan
'Adopted 2011)
Comprehensive
Plan
(Ma or update 2004
adopted /9951
.r,
CITY OF TUKWILA PLANNING DOCUMENTS
RELATIONAL CHART
SYSTEM PLANS
Water
r1.;asl adopted 2007)
Sewer
(fast adopted 2006)
Parks. Ric & Open Space
(Last adapted 2008)
Transportation
II 4,1 44.,iir,.,1 •:';4 i.,1
Stormwater Management
{Last aJopled 2003)
City Facilities
{Drab Vi"Sk)d1!
Non -Motorized Transportation
(last adopted 2009)
Fire
(Last adopted 2008)
SUB -AREA PLANS
MIC
(Last adopted 20141
Tukwila Urban Center
{Craft version)
Shoreline Master Program
(Last adopted 2009)
Tukwila Valley South
4s1 adopted 7008)
TIB Revite ization Plan
(! ast adopted 1998)
IMPLEMENTING
DOCUMENTS! REGULATIONS
Capital Improvement Program
((Updated annually)
Biennial Budget
Tukwila Municipal Code
(Ordinances and Resolutions
adopted by Council as needed)
Figure 14-3: Relationship of Adopted Plans
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ISSUES
The following issues are based upon City experiences as well as from likely events that could
impact Tukwila's ability to pay for its future.
DECREASES IN CAPITAL SPENDING
Figure 14-4 shows 10 years in operations and maintenance spending versus capital spending.
There is a trend line that shows the increasing percentage of City revenues being spent on
operations and maintenance and less on Capital.
EXTERNAL FORCES REDUCING AVAILABLE LOCAL REVENUES
In 2002 the voters of Washington State approved a property tax initiative that limits annual
revenues to no more than one percent over previous years' revenues or Implicit Price Deflator
(IPD), whichever is lower.
12
100%
80%
60%
40%
20' r
0'
Operations vs. Capital Spending
2003-2012
03 04 05 06 07 08 09 10 11 12
& M -- Cap itai Linear (O & M) — Linear (Capital)
Figure 14-4: Operations vs. Capital Spending Trend (2003-2012).
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How does the SSUTA affect local
revenue?
The SSUTA was designed in response to
Congressional debates about how tax should
be collected for sales made by mail-order and
on the Internet. Because sales tax is now based
on the destination of the sale, sales tax that
was previously collected by Tukwila on products
being shipped out of the city is now being
collected by other jurisdictions. Sales tax for
products sold within the city or to customers who
pick their orders up in person are unaffected.
What are Special Purpose Districts?
Special Purpose Districts can be created to
provide a new service or a higher level of service
than is currently available. Special Purpose
Districts can be established for a variety of
purposes, such as agriculture, economic
development, education, parks, or environmental
protection. Special Purpose Districts may collect
funds within their boundaries to provide services
related to their stated purpose, though funding
mechanisms (property tax, fees, etc.) vary by
district.
The Streamlined Sales and Use Tax Agreement (SSUTA)
of 2008 allows Washington State to cooperate with multiple
states and the business community to create a more uniform
sales and use tax structure. Under SSUTA, sales tax sourcing
changed from being based on origin to being based on
destination. In 2000, sales tax revenues were the largest
revenue source for Tukwila, generally over 40% of total
revenue. In 2012, sales tax accounts for 23% of total revenues.
The State established a mitigation fund to compensate
localities that lost revenue from implementation of SSUTA, but
it does not compensate for 100% of the loss, and there is no
guarantee that the State will maintain the fund.
LEVYING NEW TAXES AND FEES
There are several ways that the Tukwila community has been
able to compensate for the decrease in revenues. The City
created a Revenue Generating Regulatory License, which
is a fee levied on businesses operating within the City, and
instituted a Utility Tax, which applies to electric, natural gas and
communication sales, both relatively new revenue sources to
compensate for the recent changes in the funding sources from
traditional means.
CREATING MORE SPECIAL PURPOSE DISTRICTS
Forming special purpose districts allows the community
to collect additional money for specific needs such as for
parks. In 2011 a Metropolitan Park District was created with
coterminous boundaries with the City of Tukwila, in order to
sustain the operation of the Tukwila Pool. Beginning in 2013,
Tukwila property owners began paying an additional 15 cents
per $1,000 of assessed valuation. Fire Protection is a topic that
has also been discussed as a potential break away service that
would benefit from its own taxing authority.
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Levee repair at Lilly Point
PREPARING FOR NATURAL DISASTERS AND EMERGENCIES
The climate of the world is changing. Temperatures are
rising and patterns of rain and drought are changing.
Flooding events will occur with greater frequency, water
levels will rise and more droughts will occur. For Tukwila, a
significant water feature of the City is the Duwamish/Green
River and its tributaries. Property owners of the City are
part of the King County Flood Control District that manages
the levy system that protects the commercial and industrial
base of the City. An infrastructure repair and the potential
for flooding caused millions of dollars in unexpected
expenses to the City in the last six years. Response to
these changes needs to be regionally collaborative and
combined with targeted local efforts.
Tukwila is located in a seismic zone and there have been
and will continue to be earthquakes. As the responsible
public service entity, the ability to support the community
after an event is a paramount job. The location and
condition of the City's infrastructure to withstand significant
catastrophes and the presence of a reserve to pay for
unexpected events should be a factor in the capital planning
of the City.
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GOALS AND POLICIES
These policies are intended to ensure the availability of financing to accomplish the goals
expressed here and in the other elements of the Comprehensive Plan over the next 20 years.
Goal 14.1
Public facilities and services that reflect desired levels of quality, address past deficiencies,
and anticipate the needs of growth through acceptable levels of service, prudent use of fiscal
resources, and realistic timelines.
General Capital Facilities Policies
14.1.1 The City shall use non -capital and regionally shared capital options to meet its public
facility needs when there are financial or space economies of scale to be gained.
Such options include:
• Contracted Services, such as King County Animal Control;
• Cooperative programs with other public entities, such as Valley
Communications for dispatch services and South County Correctional
Entity for jail services, and Cascade Water Alliance for water supply;
• Demand Management strategies; and
• Rent or lease options.
14.1.2 The City's management of its capital facilities shall follow this order:
1. Regular inspection of systems for evaluation and to ensure conformity with
current safety standards;
2. Prioritizing projects when making improvements if the public health and safety is
at risk;
3. Preventive maintenance and cost effective replacement of aging elements; and
4. Planning for the orderly extension and upgrading of capital systems.
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14.1.3 Projects listed for the 7-20 year time frame shall be generally developed, described,
estimated and evaluated using Comprehensive Plan goals, while projects in the six-
year CIP/FPM shall be more specifically described.
14.1.4 The City will ensure that capital facilities are provided within ten years of the
occurrence of impacts that will degrade standards.
14.1.5 Within the six year time frame of a CIP/FPM, infrastructure investment will be
balanced between the residential and commercial sectors.
14.1.6 A dedicated facility fund and allocation for future building needs will be included in the
CIP/FPM.
14.1.7 Continue to fund the correction of single-family residential neighborhood infrastructure
deficiencies, including transportation, surface water, sewer and water, through
interfund loans or transfers.
14.1.8 No capital improvement projects located outside the city limits will be approved
without specific City Council approval.
IMPLEMENTATION STRATEGIES
• The CIP shall track six year spending in single-family, industrial and
commercial neighborhoods in order to measure investment balance.
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Paying for Facilities
14.1.9 If the City determines that the public's health, safety, and welfare will be benefited, or
if funding is available through external sources, such as development or grant funds,
the City will allocate funding for preliminary engineering and design of commercial and
residential street projects.
14.1.10
Late -comer agreements shall be considered an acceptable means of funding capital
projects, improvements and replacements, in whole or in part when requested by a
developer .
14.1.11 The City shall initiate property negotiations with a request for donation of the property
needed for rights-of-way and easements in all projects.
14.1.12
14.1.13
Arterial street improvements listed in the six-year CIP/FPM may be funded through
an LID or financing external to the City. The City may participate using operating
revenues, grants or bonds based on health and safety needs or public benefit.
The City shall pay for local improvement district formation costs in addition to the
preliminary and construction engineering costs, in order to provide a more timely
option for residential street improvements. To initiate this action, property owners
must petition the City for creation of a local improvement district. Residents will pay
the other costs such as, for undergrounding utilities in the street and undergrounding
from the street to their house, for the actual construction contract cost, and for any
improvements on private property such as rockeries, paved driveways, or roadside
plantings. The process and requirement for initiating a local improvement district by
petition are set forth in state and local law.
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14.1.14 The City shall, whenever practical and advantageous, apply for grants, loans, or other
external financing sources. Grant applications for capital facilities shall:
• Be made only for projects listed in the CIP/FPM, and
• Be made after approval of the appropriate Council Committee,
who shall report to the full Council on any pending grant.
14.1.15 Full Council approval is required for any grant acceptance.
14.1.16 The City shall continue to target a minimum of 33 percent of total sales tax proceeds
to pay for capital projects.
14.1.17 Transportation, fire and parks impact fees shall be collected so that "growth may pay
for growth" and growth -caused improvements may be constructed.
14.1.18
Impact fees shall be adjusted periodically based upon an appropriate capital cost
index and or other relevant data, to ensure that the fees reflect the cost of planned
system improvements related to growth and shall be subject to City Council approval.
14.1.19 The City shall consider issuance of bonds for facilities if repayment can be made from
revenue allocations.
14.1.20
The City shall consider projects identified in the CIP/FPM for general operating
revenues if substantial funding from grants, developers, other jurisdictions, or other
funding sources becomes available.
14.1.21 Non -transportation capital projects and improvements (i.e. new fire station) shall
be funded by general revenues, impact fees, grants or bonds as determined in the
biennial CIP/FPM review process.
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Landscaping and sidewalk improvements
should be coordinated with transportation
improvements.
14.1.22
The first 1/4 -cent real estate transfer tax shall
be dedicated to park and open space land
acquisition. The second'/4-cent tax, along with the
parking tax revenues, shall be used for arterial
streets
Prioritizing Facility Construction
14.1.23
14.1.24
14.1.25
14.1.26
Residential streets with safety issues, high
traffic volumes, high pedestrian activity and poor
roadway conditions will be considered the highest
priority projects.
Capital improvements shall be coordinated,
whenever feasible, with related improvements by
other jurisdictions.
Transportation improvements will be coordinated
with related improvements such as utility,
landscaping, sidewalks, etc.
Capital facility projects will be prioritized using
Comprehensive Plan and Strategic Plan goals and
policies.
IMPLEMENTATION STRATEGIES
• Create and use a decision matrix to show project consistency
with Comprehensive and Strategic Plan goal and policies.
• Rank and prioritize unfunded projects.
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Financial Planning and Plan Maintenance
14.1.27 Capital planning decisions will be linked to City-wide goals by tracking actual growth
and evaluating growth targets and level of service standards.
14.1.28 The CIP/FPM will be updated biennially and include reviews of forecasts and actual
growth, revenue, and cost totals.
14.1.29
14.1.30
Capital Facility policies will be reviewed biennially during revisions to the CIP/FPM.
Desirable changes will be implemented during the annual Comprehensive Plan
amendment process.
Policies and practices of sound governmental budgeting and accounting principles,
revenue diversity, and promoting the economic well-being of the City will be used in
order to maintain an A-1 bond rating or better for the City
14.1.31 In the event that anticipated funding falls short of meeting existing and/or anticipated
needs, the City will reassess and revise the following as needed:
• The land uses in the Comprehensive Plan;
• Funding alternatives; and/or
• The level of service standards of the City.
Enterprise Funds Policies
14.1.32 Utility rates and charges shall be structured to ensure adequate infrastructure
development, in addition to operation and maintenance requirements.
14.1.33 Adequate reserved working capital balances will be maintained for each enterprise
fund's annual expenditures. The fund balance for enterprise funds, at the close of
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each fiscal year, shall equal or exceed 20% of the previous year revenue, exclusive of
significant non-operating, non-recurring revenues such as real estate sales, transfers
in from other funds or debt proceeds.
14.1.34 Rate increases will be small, applied frequently, and staggered to avoid an overly
burdensome increase and undue impact in any given year.
14.1.35 Each enterprise fund will be reviewed biennially and will have a rate structure
adequate to meet its operations & maintenance and long-term capital requirements.
14.1.36 Rate increases of external agencies (i.e. King County secondary wastewater
treatment fees) will be passed through to the users of the utility.
14.1.37
For safety and health reasons, the City will provide sewers to all residential and
commercial areas in the City by using a combination of operating revenues, grants,
loans, bonds, voluntary local improvement district formations, and/or inter -fund loans.
14.1.38 Inter -fund loans will be permissible if practical. Interest rates will be computed based
on the annual average of the State Investment Pool earnings rate.
14.1.39 When there is a general long-term benefit to the respective enterprise fund and its
customers, the City will use bonded indebtedness as a funding alternative.
Level of Service Standards
14.1.40
Sufficient system capacity for surface water, water, sewer and transportation is
required prior to approval of any new development. (Standards for surface water,
water, and sewer are codified in the City's Municipal Code and the transportation
standards are in the Transportation Element of this Plan.) New development must
pass the concurrency tests, before development may be permitted.
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14.1.41 The City shall monitor the capacity and maintain the water, sewer, surface water and
transportation systems at the adopted standards.
IMPLEMENTATION STRATEGIES
• Continue funding six year System Plan updates.
• Compliance with the level of service standards shall be
reviewed in the biennial updates to the CIP/FPM.
Goal 14.2
A Capital Improvement Program and facility designs that meet the broad spectrum of the City's
human needs rather than just traditional needs such as vehicular and pedestrian circulation,
drinking water distribution, and sewage collection.
Policies
14.2.1 The City shall recognize and provide for multiple purposes and functions in all City
facilities and where possible, incorporate the needs of the individual within the design.
14.2.2 The design of infrastructure improvements shall include conservation of resources,
such as water reuse and energy-efficient electric fixtures.
14.2.3 The design and location of infrastructure improvement shall consider the impact of
climate change, seismic occurrence and ability to serve the community in the event of
a natural disaster.
14.2.4 Minimizing the costs of maintaining, operating and other life cycle costs shall be used
as a criterion in the design and funding for any capital facility.
14.2.5 The design and construction of capital projects shall:
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• Use best practices for a crime free environment,
• Create high quality built places,
• Have a strong landscape component,
• Maximize environmental and economic benefits,
• Minimize environmental costs, and
• Promote public health by providing opportunities for
safe and convenient daily physical activity.
14.2.6 Throughout the city, the focus of capital investments shall be on creating a connected,
dynamic urban environment.
14.2.7 The City, both acting on its own or in coordination with flood protection partners, shall
seek, design, and implement flood hazard reduction projects that are permanent, low
maintenance flood protection solutions that meet multiple objectives such as flood
control, water supply storage, water quality, recreation and fisheries protection.
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