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Item 4B CITY OF SOUTHLAKE Item 4B MEMORANDUM November 8, 2016 To: Shana K. Yelverton, City Manager From: Ben Thatcher, Assistant City Manager Subject: Approve Resolution No. 16-038, Adopt a legislative agenda for the 85th Legislative Session. Action Requested: Approve Resolution No. 16-038, Adopt a legislative agenda for the 85th Legislative Session. Background Information: Every two years the Texas Legislature meets in regular session. During the course of the session, numerous bills are filed that directly or indirectly affect municipal policies and operations. The City of Southlake wants to ensure that it has the ability to preserve its current authority to govern the City, its citizens and property in a way that reflects the attitudes and preferences of Southlake residents and businesses. The City has developed the attached legislative agenda for consideration by the City Council. Once adopted, the document will serve as the source document for guiding the City's legislative activities during the coming session. The City's General Legislative Policy is: STATEMENT OF PRESERVATION As a general policy, the City of Southlake seeks to preserve its current authority to govern the City, its citizens, and its property in accordance with its strategic goals and interests. The City will oppose any legislation viewed as detrimental to the City's strategic goals; or that is contrary to the health, safety, and welfare of its citizens; or that mandates or results in increased costs or loss of revenues; or that would diminish the fundamental authority of the City and the City Council that has been elected to govern. In 1912, Texas voters approved the concept of autonomous home rule governance. Article XI, Section 5 of the Texas Honorable Mayor and City Council City Legislative Agenda Page 2 of 5 Constitution affords municipalities the right and opportunity to adopt any regulation not "inconsistent with the Constitution of the State, or of the general laws enacted by the Legislature of this State." The concept of home rule was developed to address the difficulty faced by the legislature in resolving complex local issues —such as an increasing demand for public services—arising out of non-rural, more dense and geographically remote areas of the state. Local autonomy allows for truly local representation and accountability; and the concept creates a favorable climate for direct governance of cities by their citizens. On Saturday, April 4, 1987, Southlake voters approved the home rule Charter of the City. The voters, by and through the Charter, bestowed upon the City "all powers of local self- government and all other powers which, under the Constitution and laws of the State of Texas it would be competent for this Charter specifically to enumerate." The desire of state and local voters in approving the constitutional notion of home rule governance through a municipal charter is testament to the fact that the public favors strong local control. Legislative preemption of local control is antithetical to the will of the people, ignores a century of precedent favoring local self-governance and constitutes a legislative referendum on measures approved by public vote. The elimination of local control would have the effect of preventing the City of Southlake from addressing the needs of their citizenry, including the immediate and ongoing need to establish and maintain the public health, safety, morals and general welfare. For the reasons enumerated hereinabove, the City Council of the City of Southlake hereby strongly opposes any curtailment of local control by the legislature and advocates for the self- evident merits of continued robust local governance and accountability. STATEMENT OF SUPPORT The City supports any legislation viewed as advancing the City's strategic goals and interests; or that improves the health, safety, and welfare of its citizens; or that responsibly increases revenues; or that advances the City's authority to conduct the public's business. The proposed 2017 Legislative Agenda Honorable Mayor and City Council City Legislative Agenda Page 3of5 (attached) delineates examples of issues that the City of Southlake would support during the session. STATEMENT OF OPPOSITION The City will oppose any initiatives that seek to erode municipal authority or that otherwise have a negative impact on municipal operations. The proposed 2017 Legislative Agenda (attached) delineates examples of issues that the City of Southlake would oppose during the session. Partnerships The City may form strategic partnerships with cities, political subdivisions, and private sector entities that share common goals with the City of Southlake. Additionally, the City will work in coordination with organizations such as the Texas Municipal League when their adopted positions are in line with the legislative objectives and goals of the City. The formation of strategic partnerships and coordinated efforts is intended to provide the City with a stronger presence in the legislative process. The remainder of the legislative agenda is broken down into the City's Legislative Issues and the Goals of the Legislative Activities. Each legislative issue is given a priority designation as follows: Seek passage of legislation dealing with the issue Support legislation dealing with the issue Oppose legislation dealing with the issue The Legislative Agenda includes the following issues: 1 . Local Budgeting Authority and Revenue Sources, and City Debt 2. Local Control of Land Use Planning, Zoning and Development Regulation 3. Protection of Local Economic Development Authority 4. Texas Municipal Retirement System 5. Transportation Infrastructure and Systems 6. Water 7. Collective Bargaining 8. Public Notices Honorable Mayor and City Council City Legislative Agenda Page 4 of 5 9. Public Safety 10. Parks and Recreation 11. Aircraft Noise and Air Space Utilization Financial Considerations: It may be necessary for both the staff and members of the City Council to travel to Austin during the legislative session. Sufficient funds have been budgeted in the FY2017 budget to cover these expenses. Citizen Input/ Board Review: N/A Legal Review: The City Attorneys have contributed to the language of the proposed agenda. Alternatives: The Council could rely on TML's legislative agenda and educational efforts for the legislative session; The Council could choose to not have a formal legislative agenda and rely on the staff to bring individual issues before the Council for action. Because time is so often an issue during the legislative session, this could cause the City to be in a "catch-up" position and/or weaken the influence of the Council in the legislative process for failure to proactively communicate positions with the legislative delegation in Austin. Honorable Mayor and City Council City Legislative Agenda Page 5 of 5 Supporting Documents: Resolution 16-038 City of Southlake's proposed 2017 legislative agenda Staff Recommendation: Passage of Resolution No. 16-038 adopting a legislative agenda for the 85th Legislative Session. RESOLUTION NO. 16-038 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SOUTHLAKE, TEXAS, ADOPTING A LEGISLATIVE AGENDA FOR THE 85th TEXAS LEGISLATIVE REGULAR SESSION. WHEREAS, the Home Rule Charter of the City of Southlake, Texas, was approved by the voters in a duly called Charter election on April 4, 1987; and, WHEREAS, the City Council recognizes the need for the City to preserve its current authority to govern the City, its citizens, and its property; and, WHEREAS, the Texas Legislature has in the past adopted legislation that has impacted the City's ability to govern the City, its citizens, and its property; and WHEREAS, the City Council recognizes the importance of the City being fully involved in the legislative process; and, WHEREAS, the City Council had deemed that the recommended Legislative Agenda reflects the strategic goals and interests of the City, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SOUTHLAKE, TEXAS THAT: Section 1. All of the findings in the preamble are found to be true and correct and the City Council incorporates said findings into the body of this resolution as if copied in its entirety. Section 2. Exhibit A is hereby adopted as the Legislative Agenda for the City of Southlake, for the 85th Texas Regular Legislative Session. Section 3. The different elements, issues or priorities, as adopted, and as amended from time to time, shall be kept on file in the office of the City Secretary of the City of Southlake, along with a copy of the resolution and minute order of the Council so adopting or approving same. Section 4. This resolution shall become effective on the date of approval by the City Council. PASSED AND APPROVED ON THIS 15TH DAY OF NOVEMBER, 2016. CITY OF SOUTHLAKE By: Laura Hill, Mayor ATTEST: Lori Payne, City Secretary CITY OF SOUTHLAI<#A,E City of Southlake 2017 Legislative Agenda 85t" Texas Legislative Session IRLR W-1000 9 GENERAL LEGISLATIVE POLICY STATEMENT OF PRESERVATION As a general policy, the City of Southlake seeks to preserve its current authority to govern the City, its citizens, and its property in accordance with its strategic goals and interests. The City will oppose any legislation viewed as detrimental to the City's strategic goals; or that is contrary to the health, safety, and welfare of its citizens; or that mandates or results in increased costs or loss of revenues; or that would diminish the fundamental authority of the City and the City Council that has been elected to govern; or that advances "one size fits all" or arbitrary solutions to complex local governance issues. The City of Southlake believes strongly in its right to self govern under the concept of home rule authority and its voter-approved City Charter. Home Rule Authority/Local Control In 1912, Texas voters approved the concept of autonomous home rule governance. Article XI, Section 5 of the Texas Constitution affords municipalities the right and opportunity to adopt any regulation not "inconsistent with the Constitution of the State, or of the general laws enacted by the Legislature of this State." The concept of home rule was developed to address the difficulty faced by the legislature in resolving complex local issues —such as an increasing demand for public services—arising out of non-rural, more dense and geographically remote areas of the state. Local autonomy allows for truly local representation and accountability; and the concept creates a favorable climate for direct governance of cities by their citizens. On Saturday, April 4, 1987, Southlake voters approved the home rule Charter of the City. The voters, by and through the Charter, bestowed upon the City "all powers of local self- government and all other powers which, under the Constitution and laws of the State of Texas it would be competent for this Charter specifically to enumerate." (Southlake, Tex., Charter§1.07 (adopted Apr. 4, 1987).) The desire of state and local voters in approving the constitutional notion of home rule governance through a municipal charter is testament to the fact that the public favors strong local control. Legislative preemption of local control is antithetical to the will of the people, ignores a century of precedent favoring local self-governance and constitutes a legislative referendum on measures approved by public vote. The elimination of local control would have the effect of preventing the City of Southlake from addressing the needs of their 2 citizenry, including the immediate and ongoing need to establish and maintain the public health, safety, morals and general welfare. For the reasons enumerated hereinabove, the City Council of the City of Southlake hereby strongly opposes any curtailment of local control by the legislature and advocates for the self-evident merits of continued robust local governance and accountability. It is the position of the City of Southlake that members of the Legislature should carefully study any initiative that could have a negative impact on municipal operations. Further, the City would strongly encourage State elected officials to seek the opinions and consider the point of view of local elected officials on any legislation that could impact municipal operations. POSITIONS OF SUPPORT The City supports any legislation viewed as advancing the City's strategic goals and interests; or that improves the health, safety, and welfare of its citizens; or that responsibly increases revenues; or that advances the City's authority to conduct the public's business, such as the following: 1. Improves the health, safety, and welfare of its citizens; 2. Supports or advances the principles of local control; 3. Protects or enhances municipal revenues such as property taxes, sales taxes, right- of-way revenues and court fines; 4. Simplifies and accurately notifies taxpayers of the actual impacts of the City's adopted property tax rate; 5. Requires mandatory disclosure of real estate sales prices or substantially improves the real estate appraisal process including the appeals process; 6. Improves the City's ability to attract economic development, tourism, or that improves the quality of the City's workforce; 7. Increases state funding for transportation projects or creates local-option funding options for transportation projects or that discontinues the diversion of transportation revenues to non-transportation purposes; 8. Provides funding for water projects; 9. Protects the City's previous and future investments in the Texas Municipal Retirement System or creates non-retroactive and flexible cost-of-living adjustment (COLA) adjustments; 3 10.Appropriates funds for or directly benefits public parks, recreation, open space, trails, 11.Appropriates funds for or directly benefits tourism; 12. Clarifies and improves the disclosure and filing requirements regarding the City's process of contracting with business entities; or 13. Improves the City's ability to provide public services or reduces the costs of providing services such as authorizing public notices on the Internet. POSITIONS OF OPPOSITION The City will oppose any initiatives that seek to erode municipal authority or that otherwise have a negative impact on municipal operations, including but not limited to legislation that would: 1 . Erodes the authority of the City to govern municipal affairs or diminishes the authority of the City to provide municipal operations; 2. Undermine the principles of Home Rule and Local Control or seeks to unnecessary preempt or prohibit the City from regulating an activity or business entity that directly affects the public's health, safety and well-being; 3. Applies a one size fits all solution to complex local policy issues. 4. Detrimentally affects the health, safety, and welfare of our citizens; 5. Nullifies or undermines the City's existing Charter, Ordinances, Resolutions or Master Plans; 6. Damages the City's financial position by reducing revenues or negatively impacts potential revenue growth including legislation that: a. Imposes a: i. revenue cap of any type, including a rollback rate below eight percent, ii. mandatory tax rate ratification election, iii. lower rollback petition requirement, iv. limitation on overall city expenditures, or v. a requirement to exclude new property in the effective rate calculations; b. Negatively lowers the homestead appraisal cap or expands the appraisal cap to non-homestead properties or otherwise erodes the basic concept that appraisals reflect true market values of property; 4 c. Creates property or sales tax exemptions or "freezes" that unfairly shift the tax burden to other taxpayers d. Erodes the overall tax base; e. Restricts the ability of the City to issue debt through either General Obligation or Certificates of Obligation bonds or cause unnecessary complex public notification requirements; f. Imposes a mandate without a commensurate level of compensation; or g. Requires the City to generate revenues for the State including additional state fees on municipal court convictions; 7. Impairs economic development tools including but not limited to: a. Economic Development Corporations (EDCs), b. Property tax abatements, c. Tax increment reinvestment zones (TIFs or TIRZ), d. Chapter 380 agreements, e. Texas Enterprise Fund, f. Skills Development Fund, g. Texas Enterprise Zones, h. Event and Major Event Trust Funds, i. Texas Moving Image Industry Incentive Program; and j. TDHCA Housing Tax Credit Program. 8. Diminishes the City's authority to regulate development through: a. land use and zoning regulations (including billboard regulations and tree and landscape regulations), b. building codes, c. planning requirements, d. impact fees or building permit fees, e. annexation, or f. eminent domain; 9. Establishes a requirement for compensation resulting from regulatory actions or expands vested permits; 10. Imposes mandatory water conservation measures or a "tap fee" or any other state fee on municipal water systems; 11.Exempts any entity from paying municipal drainage fees; 12.Allows special districts to form inside the City or the ETJ without the City's permission; 5 13.Erodes the City's authority to manage and control public rights-of-way and publicly owned land or limits the City's ability to receive fair market compensation for use of public rights-of-way or erodes municipal authority to require companies to pay for the costs of relocating their facilities; 14.Erodes the City's original jurisdiction over certain utilities and certain utility rates or erodes the City's authority to participate in utility rate cases; 15.Erodes the City's previous and future investments in the Texas Municipal Retirement System; 16. Imposes expanded collective bargaining rights or expands the current meet and confer laws or expands the scope of the current disease presumption law or detrimentally amends civil service laws; 17.Expands the open meetings and public information laws or make them more ambiguous; or 18.Requires the reporting of lobbying activities beyond the current requirements or limits or prohibits the City to use funds to communicate or advocate with legislators or limits or prohibits the authority of the Texas Municipal League to use any revenue to communicate with legislators; or 19.Erodes municipal governmental immunity; 20.Repeals or limits red light camera authority generally; or 21 .Erodes the City's ability to enter into franchise agreements. PARTNERSHIPS The City may form strategic partnerships with cities, political subdivisions, and private sector entities that share common goals with the City of Southlake. Additionally, the City will work in coordination with organizations such as the Texas Municipal League when their adopted positions are in line with the legislative objectives and goals of the City, and other agents who are formally authorized to represent the City's legislative interests, as defined by this legislative agenda. The City's staff and its governmental relations team are authorized to act accordingly and work within the Texas legislative process to actively advocate for the passage or defeat of legislation according to these positions adopted by the City Council. The formation of strategic partnerships and coordinated efforts is intended to provide the City with a stronger presence in the legislative process. 6 GOALS OF CITY LEGISLATIVE ACTIVITIES The fundamental goal of all City of Southlake legislative activities is to produce positive outcomes for the citizens of the City of Southlake and to preserve the legislative authority of the governing body of the municipality. Numerous proposals in the Texas Legislature have the potential to seriously impact the ability of the City to carry out its overall mission. By taking a proactive role in monitoring and commenting on proposals in the Texas Legislature, we are working to ensure that the citizens of the City of Southlake can continue to enjoy the quality of life they have come to expect and deserve. The City of Southlake has formally adopted strategic priorities and objectives as outlined in a Strategy Map, shown below. This Map will guide the City Council in the ongoing process of evaluating legislative positions on the key issues of the 85th session of the Texas Legislature. If a legislative issue arises that is not specifically addressed in this agenda, the City will rely on adopted strategic priorities to guide the formation of an opinion. CITY OF SOUTHLAKE STRATEGY MAP The City of Southlake provides municipal services that support the highest quality of life for our residents,businesses,and visitors.We do this by being an exemplary model of balancing efficiency,fiscal responsibility,transparency,and sustainability. DELIVER ON OUR Focus AREAS CRITICAL BusiNESS OUTCOMES F" • Quality Pawerships :. financial position and implement 5­dty Plans and policies to ensure future financial strength. :. • • C3 Provide attmcdue& C4 Attmtf&XeeP top- C6 Enhance the sense of Wt tlues and( M C2P—ide travel 6Pmmoteoppatunhles 2–Enhance mobility through aggressive traff!,cp7anaement a,pro unique spaces for the flet businesses to drive carmwnhy by pnNlding t9�Xent CB03–Engage in thoughtful onvenien Ahln forPartnerships& �ty&region enjvyment of peronal adyna ic8 sustainable +wlurdeerirwvhremem customer service and chicon interests s conomn ennronment engapmemoppoft nities high qua ity development that Is integrated welt into the current built enVhonment. B1 Athiere best-in-dans B2Cdla6aalewhh select Is3 Enhance resident B4 Provide high quality B5 Enhan.service status In all City partners to implemem quality of life&business servimthroughsustaWWe deli ,Through B6 Optimi.useoF dlsclplines service solutio ns vitailty through toudsm buslness p.m., <inlnualpmcess technology improvement commercial tax base by attract!ng to reduce'he tax burden onff PROVIDE FINANCIAL STEWARDSHIP C905–improv,of life through �I 11-here t*11111ial manap-11 F2lnvestta provide&maintain F3 Achleue Rswl wellness scandartls 14 Establkh&maintain errecdve VIII prindples&budget high-quality public asses internal comrols Comprehensive Plan PROMOTE LEARNING&GROWTH e 11 Enwre our people 11 EMta'ce leadership L3 Anratt,develop LS'Empower iMermed lA RemgoTz!&rewartl L6 Foscer positive understand the strategy& wpablhtles to deliver &retalnasklped tleclsian-making at all levels gagemem low crime rate and effective h—Ilhey cpmdbVh to it .sults workforce high performers n,he organ--- employee en LEGISLATIVE ISSUES Local Budgeting Authority, Revenue Sources, and City Debt As a municipal government which provides important and essential services to its citizens, the City of Southlake will monitor any legislation that would unduly restrict the ability of the City Council to set its own budget or raise the necessary revenue to provide services to City residents and businesses. As it relates to this position, the City will: Support legislation that: • Simplifies the effective tax rate calculation for notice purposes only, provided the legislation would have no effect on the underlying effective tax rate and rollback tax rate calculations themselves, nor upon the hold harmless exemptions to those rates. • Provides additional tools to local authorities for providing tax relief to the community, as appropriate for local conditions. Oppose legislation that: • Establishes a State-mandated municipal revenue cap; • Further restricts or caps annual appraisal increases; • Imposes a State-mandated tax freeze or tax cap; • Imposes any unfunded mandates; • Restricts a municipality's ability to impose and collect municipal impact fees from new developments; • Imposes any requirement to raise current state fees on local fines; • Imposes new fees that result in the City collecting funds on behalf of the State; • Lowers the rollback threshold or the rollback rate at which an election is triggered; • Establishes new exemptions from or diminishes the City's ability to collect sales or property taxes, or municipal fees; • Results in a significant reduction to the City's tax base; or, • Restricts the City's ability to issue debt as a means of funding its capital improvement program, or imposes unnecessary and costly burdens on the taxpayers to issue debt. Local Control of Land Use Planning, Zoning and Development Regulation 8 The ability of most cities to manage growth and development is based on the Texas constitution's home rule provisions. Cities are allowed to amend charters and pass ordinances as long as they do not conflict with the constitution or general laws enacted by the state legislature. The bottom line means that each home rule city can make its own decisions about what planning tools and techniques are most appropriate to its situation unless those tools have been proscribed by the Texas legislature. As it relates to this position, the City will: Support legislation that preserves local land use, zoning and development regulatory authority. Oppose legislation that: • Erodes local land use authority by restricting the ability of cities to zone or rezone properties; • Restricts a city's ability to adopt or amend zoning regulations, or otherwise create a property right in a zoning classification; • Preempts the city from adopting development regulations it deems necessary for the preservation of the city's quality of life (e.g., tree preservation); and/or, • Is detrimental to the existing vested rights statute. Protection of Local Economic Development Authority Over the years, the City has utilized many different economic development tools and efforts to bring new investment to Southlake. During each legislative session these varying tools are the subject of much consideration and debate. It is in the City's interest to closely monitor these discussions and legislative activities as it potentially impacts our ability to use resources in building effective economic development programs and offer incentives to attract community investment. As it relates to this position, the City will: Support legislation that provides local governments the ability to expand local economic development efforts. Oppose legislation that would eliminate or limit current authority to participate in local economic development projects, including but not limited to, the ability to provide tax abatements and Chapter 380 economic development agreements. Texas Municipal Retirement System The City of Southlake desires that an appropriate retirement system be provided to its current and former employees through the Texas Municipal Retirement System, one in 9 which the needs of retired employees are balanced with the needs of taxpayers. To achieve this end, the City supports legislative changes which will provide cities participating in the Texas Municipal Retirement System with the flexibility needed to adequately balance these needs. As it relates to this position, the City will: Support legislation that: • Creates additional, flexible, cost-of-living adjustment (COLA) options under the Texas Municipal Retirement System that are not retroactive to a retiree's date of retirement, such options to possibly include one-time increases tied to increases in the consumer price index or flat percentage increases. Transportation Infrastructure and Systems The City of Southlake believes that the ability of the North Texas region to work cooperatively is essential to the viability of this community and that of the entire region. A primary element of regional cooperation is a transportation system that seamlessly allows movement of people and goods throughout the area. Traffic management initiatives are a high priority for the City of Southlake, including capacity enhancements, traffic control, public information, and implementation of alternative modes of transportation. The City of Southlake is committed to finding transportation solutions to facilitate movement to, from and through Southlake and the surrounding area. As it relates to this position, the City will: Support legislation that: • Allows for greater flexibility by cities to fund local transportation projects; amend or otherwise modify state law to help cities fund transportation projects; or provide municipalities with additional funding options and resources to address transportation needs that the state and federal governments are unable or unwilling to address; • Provides additional funding to the Texas Department of Transportation for transportation projects that would benefit cities, so long as existing funding formulas are followed, and/or, Water The City of Southlake understands that access to long-term, adequate water supply is essential to the health and vitality of the community. Recent challenges related to drought conditions underscored the need for long-term planning related to supply and distribution, not only for Southlake, but for the region and the State. Ensuring that we have an adequate supply of clean, affordable water protects public health and the economy. As it relates to this position, the City will: 1 Support legislation that: • Advances the implementation of the State Water Plan. Collective Bargaining The City of Southlake believes that the decisions affecting the employment relationships between employers and employees are best made at the local level by the elected officials who represent the citizens of the local governments in which these individuals work, and not at the state and federal government. As it relates to this position, the City will: Support legislation that ensures that decisions related to the use of collective bargaining, meet and confer and other employment processes are made at the local level . Oppose legislation that mandates specific employment processes for municipalities by the State or Federal government. Public Notices In Texas, the Local Government Code requires municipalities to publish public notices in the local newspaper. With the use of the internet the City would be interested in providing this same service in a more efficient, less expensive and well organized way. As it relates to this position, the City will: Support legislation that allows a municipality to publish legal notices on a city's website versus the existing newspaper publication which costs taxpayers unnecessary money. Public Safety The City of Southlake has a few major traffic corridors within its boundaries such as State Highway 114, Farm to Market Road 1709, and Farm to Market Road 1938. The City also seeks to have a safe and secure roadway system and as such the City would support legislation that enhances this goal. As it relates to this position, the City will: Support legislation that authorizes sobriety checkpoints. Oppose legislation that erodes or repeals red light camera authority. Parks and Recreation As it relates to the advancement of park, recreation and open space development, the City will support legislation that appropriates funds for or directly benefits public parks, recreation, open space and trails. 1 Aircraft Noise and Air Space Utilization The City of Southlake has historically worked with the Federal Aviation Administration and DFW Airport to minimize negative consequences or compatibility issues arising from the close proximity of the City to the airport. In the late 1980s, the City worked with airport planners to identify the best methods of addressing land use incompatibility issues, resulting in the development of Air Corridor Utilization Zones to clearly identify areas of over flight impact to minimize noise compatibility issues. This agreement has guided the City's land use regulations. Recent changes in usage characteristics on runway 13R/31 L have resulted in aircraft flying over the City outside established corridors. This, along with the City's understanding that the FAA is moving forward with a program called Next Gen, has prompted the City to establish a legislative position on aircraft noise and air space utilization. As it relates to this position, the City will: Support legislation and/or regulatory policies that protect the City's previously agreed upon method for using airspace over its city limits within the well-established corridors that have guided our City's development and investment. 1