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HomeMy WebLinkAboutSpecial 2013-07-30 Index 3C - Capital Facilities Element - Strikeout/Underline VersionCAPITAL FACILITIES IELEMEN11 PURPOSE Growth Management Act Capital Facility Planning Requirements This element of the Comprehensive Plan presents the goals and policies for Tukwila's Capital Facilities. - changing needs and the long term goals of the Comprehensive Plan. Planning under the Growth 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; :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: 2.4. 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 requirement concept of the GMA and capital facilities planning is concurrency—that specific public facilities must -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. The City has prepared a comprehensive list of proposed capital facility improvement, estimated their cost and identified their potential benefits. . .. .... . 2001 2009, the 2008 Fire Master Plan, the 2008 Parks, Recreation and open Space Plan; and in the Capital Facilities Element Background Report Supplement, dated 2001, both of which are adopted by Page 1 of 15 Comment [LG1]: Element covers GMA requirement to have goals and policies addressing levels of service and concurrency strategies. Remaining GMA requirements regarding inventory, forecast of future needs, proposed facilities and locations, 6 year detailed plan, and 20 -year conceptual plan we assume are handled in the Background Report. Comment [LG2]: The new text is intended to cover requirements and commitments first, the details of the City's 6 -year model, City funds, then recognition of other partners. Comment [DC3]: Opportunity to link to the community demands for long-term fiscal sustainability of the City. TUKWILA COMPREHENSIVE PLAN do so as the implementation of the Comprehensive Plan proceeds. Tukwila's public facility needs are served by -not only l .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, wMohsuch as as well and include: Tukwila &School District, King County LibrarylibrarySvstem, Valley View sSewer District, and Hiqhline Wwater District. (See also the Utilities Element.) and park districts„ as well as regional agencies/providers. In addition to Mmaintaining 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. for growth in Tukwila is coordinated through collaboration on system plans that is done by these special purpose districts and regional providers. The Capital Facilities Element is Capital Facility Planning in Tukwila Capital facilities planning in Tukwila is separated into two different types of funds. divided into two categories; ❑ General Government -government Fundsfunds, which include are -the special revenue and capital protects funds for all -general capital needs, such as residential streets, arterials, buildings, parks and trails, and other improvements. {Figure 45) ❑ Enterprise Funds, which arc inlcude funds for which fees are received in exchange for specific goods and services.whose source and use are restricted to a respective enterprise and which cannot be used for another purpose. In Tukwila this includes- water, sewer, surface water, and the Foster Golf Course. (Figure 46) ISSUES General Government Facilities Funds There appear to be sufficient revenues, combined with developer participation, grants, local improvement districts and other miscellaneous sources to enable the City to meet its capital goals. The General Government Funds are composed of the following funds allocated into tothe various categories for spending. The spending categories are organized as follows: 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 includcsis for transportation -related projects specifically identified for residential street improvement in residential neighborhoods and includes -lane widening, curbs and putters, sidewalks, illumination and undergrounding utilities. Said funds shall come from the City's general fund. Page 2 of 15 Comment [NG4]: Added per Planning Commission direction ■ The arterialBridges and -Arterial street Streets program 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 fundss, impact fees and mitigation payments ■ The Land Acquisition and Park Development Program The General Fund uses City funds, grants, real estate excise tax and impact fees for includes money for fire, 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 Boulevards; and ■ The General Improvements Fund is designated for minor capital improvements not related to parks, land acquisition or major building replac3ements and included the emergency levee costs associated with the Howard Hanson Dam repair. General government sources of funds and expenditures are illustrated in the following pa - figures. 2011 General Government Funds Revenue Sources Charges for Services 0% Miscellaneous 2% Taxes 4% Page 3 of 15 TUKWILA COMPREHENSIVE PLAN 2011 General Government Funds Expenditures Residential Parks/Trails Streets 4/ 0% General Govt) cillties 5✓ 0% Figure xx — 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 requires 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 w+ii-evaluates and utilizes a combination of revenue sources, such as utility rates increases, bonds, loans, grants, developer contributions and local improvement districts (LIDs). The transfer of service from other water and sewer providers to Tukwila will provide a larger revenue base for both utilities. This expanded base plus a The combination of developer contributions, local improvement districts, grants, and Public Works Trust fund loans, and monies from other sources should helps provide financial solutions for long-term requirements. An average example of enterprise capital sources of funds and expenditures is illustrated below. Page 4 of 15 2011 Enterprise Funds Revenue Sources Gra smi61% Other 0% Charges for Services 79% 2011 Enterprise Funds Expenditures Surface Water 20% Golf 8% Figure xx — Enterprise capital sources of funds and expenditures • Water and Sewer Funds , With the transfers from S attic, 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. Although there will be new net revenues generated by the served. In order to provide infrastructure in the unserved portions of the City, additional -A- revenue methods are needed is needed-te-in order to extend service to these areas.provide adequate infrastructure in all unserved areas of the City. These Available revenue alternatives would sources include= local improvement districts, grants, Trust Fund loans, rate increases, customer contributions, and general fund loans or transfers. Page 5 of 15 Formatted: Font: Arial Narrow TUKWILA COMPREHENSIVE PLAN • Surface Water Fund— The Surface Water Capital Plan Enterprise Fund -identifies projects needed to correct surface water deficiencies. Because the fund is so new (it was established in required will be paid for by developers, local improvement districts, and possibly some grants, the exact amount of unfunded requirements arc not yet known. 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; and 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 competitive rate structure competitive with nearby municipal courses. All capital improvements will be funded from the above mentioned operating 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 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. 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. The table below shows 10 years in operations and maintenance spending versus capital spending. There is a trend line that shows the increasing percentage of total revenue being spent on operations and maintenance and less on Capital. 120% 100% 80% 60% 40% 20% 0% Operations vs. Capital Spending 2003-2012 03 04 05 06 07 08 09 10 11 12 —0 & M —Capital —Linear (0 & M) —Linear (Capital) Page 6 of 15 Comment [MCB5]: This new language in the Issues section is staff's summary on current trends and future aspects that we are or that we anticipate will impact capital facilities planning. Formatted: Font: Arial Narrow • 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. 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. • 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 drought 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 need to be a regionally collaborative 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 lob. 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. Page 7 of 15 TUKWILA COMPREHENSIVE PLAN 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. Policies here and in the other elements of the Comprehensive Plan over the next 20 years. General GovernnientCapital Facilities Policies Comment [KG6]: This statement has been placed directly under the "Goals and Policies" heading. 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. 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. Page 8 of 15 14.1.114.1.4 The City will ensure that capital facilities are provided within ten years of the occurrence of impacts that will degrade standards. 11.1.2 11.1.3 11.1.1 revenue, and cost totals and forecasts. Review capital facilities needs every three years. Continue to target a minimum of 33 percent of total sales tax proceeds to pay for capital projects 14.1.5 Within the six year time frame of a CIP/FPM, Balance infrastructure investment will be balanced between the residential and commercial sectors. 11.1.6 promoting the economic well being of the City. 11.1.7 \Ilow issuance of bonds for facilities if repayment can be made from revenue allocations. 11.1.8 Consider projects identified in the Capital Improvement Plan for general operating revenues if substantial funding from grants, developers, other jurisdictions or other funding sources becomes available. InsludeA-a dedicated facility fund and allocation for future building needs will be included in the CIP/FPM. Consider City funding for preliminary engineering and design of commercial street projects if the City determines that the public's health, safety and welfare will be benefited. Use a mitigation based fee system for each affected City function as determined in the in accordance with the prioritized list of residential street projects, and provide interfund loans or transfers for neighborhood water and sewer deficiencies. 11.1.13 �To provide a more timely option for residential street improvements, property owners may form local improvement districts and the City may pay for the design, preliminary Residents will pay the other costs such as, undergrounding utilities in the street and improvements on private property such as rockeries, paved driveways, or roadside psi 14.1.7 Page 9 of 15 Continue to fund the correction of single-family residential neighborhood infrastructure deficiencies, including transportation, surface water, sewer and water, through interfund loans or transfers. Comment [MCB7]: Capital facility review is currently done on an annual basis and is being recommended for a 2 year basis to follow the new budgeting schedule. Comment [MCB13]: Renumbered 14.1.16 Comment [MCB9]: Renumbered 14.1.30 Comment [MCB10]: Renumbered 14.1.19 Comment [MCB11]: Comment [MCB12]: CIP Policy 17. Comment [MCB13]: Renumbered 14.1.9 Comment [MCB14]: See 14.1.7 and See 14.1.37 for interfund Loans to pay for sewer and water deficiencies. Comment [MCB15]: Relocated below. Comment [MCB16]: Renumbered/modified 14.1.11 TUKWILA COMPREHENSIVE PLAN 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. 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 ConsiderCity will allocate funding for design and preliminary engineering and design of commercial er-and residential street projects if the City determines that the public's health, safety, and welfare will be benefited. 14.1.10 When requested by a developerLlate-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 shall ted -in all projects. 14.1.12 rterial 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. 14.1.13 1 -he City shall pay for local improvement district formation costs in addition to the preliminary and construction engineering costs, in orderT to provide a more timely option for residential street improvements. To initiate this action, property owners may must form petition the City for creation of local improvement districts. and th C'ty may pay the design, preliminary engineering, construction engineering costs Residents will pay the other costs such as, 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. 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 siyear CIP/FPM, and Page 10 of 15 Comment [MCB17]: Existing CIP policy 19. Comment [MCB18]: Renumbered/modified 14.1.10 Comment [MCB19]: CIP Policy 2 Comment [MCB20]: CIP Policy 6 Comment [MCB21]: CIP Policy 13 Comment [MCB22]: CIP Policy 10 Comment [MCB28]: Relocated 14.1.8 14.1.15 14.1.16 • Be made after approval of the appropriate Council Committee, who shall report to the full Council on any pending grant. I Full Council approval is required for any grant acceptance. The City shall Gcontinue to target a minimum of 33 percent of total sales tax proceeds to pay for capital projects. I 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 Mew issuance of bonds for facilities if repayment can be made from revenue allocations. 14.1.20 The City shall Gconsider 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 fNon-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. 14.1.22 The first 1/4 -cent real estate transfer tax shall be dedicated to park and open space land acquisition. The second 1% -cent tax, along with the parking tax revenues, shall be used for arterial streets. Prioritizing Facility Construction 14.1.23 Residential streets with safety issues, high traffic volumes, high pedestrian activity and poor roadway conditions will be considered the highest priority projects 14.1.24 Capital improvements shall be coordinated, whenever feasible, with related improvements ef-by other jurisdictions. I 14.1.25 Transportation improvements will be coordinated with related improvements such as utility, landscaping, sidewalks, etc. 14.1.26 Capital facility projects will be prioritized using Comprehensive Plan and Strategic Plan goals and policies. Implementation Strategies Page 11 of 15 Comment [MCB23]: CIP Policy 12 Comment [MCB24]: CIP Policy 12 Comment [MCB25]: Relocated 14.1.4 Comment [MCB26]: CIP Policy 22 with inclusion for fire and parks Comment [MCB27]: Relocated 14.1.7 Comment [MCB29]: CIP Policy 16 Comment [MCB30]: CIP Policy 15 Comment [MCB31]: CIP Policy 9 Comment [MCB32]: CIP Policy 11 Comment [MCB33]: CIP Policy 18 TUKWILA COMPREHENSIVE PLAN • Create and use a decision matrix to show project consistency with Comprehensive and Strategic Plan goal and policies. • Rank and prioritize unfunded projects 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 Update tThe CIP/FPM - will be updated biennially and include le -reviews of forecasts and reassess actual growth, revenue, and cost totals -arm -forecasts. 14.1.29 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. 14.1.30 Support ePolicies 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 that will maintain an A-1 bond rating or better for the City principles, revenue diversity, and promoting the economic well being of the City. 14.1.31 Jin 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 and/or • the level of service standards of the City. Enterprise Funds Policies 11.1.11 Use the following levels of service to guide City investments in Fire Services: 90% of the time. Operate four fire stations distributed throughout the City. response, and public education. one front line aid car. Page 12 of 15 Comment [MCB34]: Relocated 14.1.2 Comment [MCB35]: CIP Policy 20 with change from annually to biennially and inclusion of Comp Plan process. Comment [MCB36]: Relocated 14.1.6 Comment [MCB37]: Relocated 142.2 Comment [MCB38]: Fire and Parks level of service standards have been codified in TMC 16 14.1.15 Use the following levels of service to guide parks acquisition and improvement decisions: 14.1.3214.1.16Structure Uutility rates and charges for scrvicccshall be structured to ensure adequate infrastructure development, in addition to operation and maintenance requirements. 14.1.3311.1.17Maintain Aadequate reserved working capital balances will be maintained for each enterprise fund's annual expenditures. h -he fund balance for enterprise funds, at the close of 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 18 issue by using a combination of operating revenues, grants, loans, bonds, voluntary local improvement district formations, and interfund loans. 14.1.19 Use bonded indebtedne,s as a funding alternative when there is a general long term benefit to the respective enterprise fund. 14.1.20 Continue to fund the correction of single family residential neighborhood infrastructure deficiencies. 14.1.34 Rate increases should will be small, applied frequently, and staggered to avoid an overly burdensome increase and undue impact in any given year. Page 13 of 15 Comment [MCB39]: Added portion of FP -7 Comment [MCB40]: See 14.1.37 Comment [MCB41]: Relocated above Comment [MCB42]: See 14.1.7 Comment [MCB43]: Existing Financial Policy (FP) -11 2008- atiof 47,930 2022 atatio : 24,719 (cst.) Park/Facility Type Service Area Current Ufit-ef- Measurement n.......nt Demand Surplus (deficit) LOS- Demand Surplus (deficit) Mini- Rack Up-te- 'lzmile 1.2 acres 0.07 1-.20 0 1.65 (0 4€) acres per 1,000 pop. Neighborhood Barb 1/2 to 1 504- acres 2.81 50.40 0 69.48 (49:08) mile acres per 1,000 pop. Community- Park 1 to 5 25.0 1.39 24.97 0 34.43 (946) miles acres acres per 1,000 pop. Regional 5 to 20 132.0 7.36 131.99 0 181.97 (49.98) Park** miles acres acres per 1,000 pop. Open 3&5- acres 1.87 3350 0 4648 (42.68) Space acres per 1,000 pop Neighborhood- connecter t9- miles 0.90 miles of trail per -1000 -pop: 4614 (444 0) 22.21 (20:30) Regional Trail 444 miles 0.64 miles of trail per 000 --pep. 11.40 0 15.72 (4 42) Community- Center 8ne_ center 1 per 15,000 pop. 1.20 (0:20) 1.65 (465) 14.1.3214.1.16Structure Uutility rates and charges for scrvicccshall be structured to ensure adequate infrastructure development, in addition to operation and maintenance requirements. 14.1.3311.1.17Maintain Aadequate reserved working capital balances will be maintained for each enterprise fund's annual expenditures. h -he fund balance for enterprise funds, at the close of 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 18 issue by using a combination of operating revenues, grants, loans, bonds, voluntary local improvement district formations, and interfund loans. 14.1.19 Use bonded indebtedne,s as a funding alternative when there is a general long term benefit to the respective enterprise fund. 14.1.20 Continue to fund the correction of single family residential neighborhood infrastructure deficiencies. 14.1.34 Rate increases should will be small, applied frequently, and staggered to avoid an overly burdensome increase and undue impact in any given year. Page 13 of 15 Comment [MCB39]: Added portion of FP -7 Comment [MCB40]: See 14.1.37 Comment [MCB41]: Relocated above Comment [MCB42]: See 14.1.7 Comment [MCB43]: Existing Financial Policy (FP) -11 TUKWILA COMPREHENSIVE PLAN 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 Count 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 provide sewers to all residential and commercial areas in the City as a safety and health issues by using a combination of operating revenues, grants, loans, bonds, voluntary local improvement district formations, and/or interfund loans. 14.1.38 Interfund 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 u14se bonded indebtedness as a funding alternative when there is 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. 14.1.41 1 -he 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 Design of Capital Facilities Page 14 of 15 Comment [MCB44]: Existing Financial Policies (FP) -9; biennially substituted for annually Comment [MCB45]: Existing FP -10 Comment [MCB46]: Relocated 14.1.18 Comment [MCB47]: Existing General Financial Policy GF -4 Comment [MCB48]: 14.1.39 Comment [LG49]: A discussion of level of service standards is contained in the Capital Facilities Background Report as well as the system plans for each of these services. Concurrency implementation and the level of service standards are codified in the Tukwila Municipal Code: (TMC 9 and 14.) Comment [MCB50]: Provides the policy basis for the codification of service standards In the event that anticipated funding falls short of meeting existing and or anticipated 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 rRecognize and provide for multiple purposes and functions of -in all City facilities and where possible, incorporate the needs of the individual within the design, the needs of the individual. 1,1.2.2 14.2.2 jfhe 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: • 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 • Promote public health by providing opportunities for safe and convenient daily physical activity 14.2.6 lThroughout the city, the fRocus 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. W:1Long Range Projects12014 CompPlanUpdate\CFP\Background Report and Element Review Drafts\Planning Commission Review1PC Notated strikeout underline 14_CapFac_Element_.docx Page 15 of 15 Comment [MCB51]: See 14.1.31 Comment [MCB52]: CIP Policy 3 revised Comment [MCB53]: Reworded CIP Policy 8