CCW PACKET - REVISED 03-01-22

CITY OF DOVER, DELAWARE COUNCIL COMMITTEE OF THE WHOLE MEETING Tuesday, March 01, 2022 at 6:00 PM This meeting will be held virtually via WebEx THE PACKET FOR THIS MEETING WAS REVISED TO ADD SUPPORTING DOCUMENTATION FOR ITEM #3 - DRAFT ANNUAL COMPREHENSIVE FINANCIAL REPORT AND ITEM #4 - REPORT ON PAYMENT IN LIEU OF TAXES AGENDA Public comments are welcomed on any item and will be permitted at the appropriate time. When possible, please notify the City Clerk (302-736-7008 or email at cityclerk@dover.de.us) should you wish to be recognized. VIRTUAL MEETING NOTICE This meeting will be held electronically. Public participation information is as follows: Dial: 1-408-418-9388 Link: https://rb.gy/7bbslv Event number: 2330 898 9807 Event password: DOVER (if needed) If you are new to WebEx, get the app now at https://www.webex.com/ to be ready when the meeting starts. CALL COUNCIL COMMITTEE OF THE WHOLE MEETING TO ORDER SAFETY ADVISORY AND TRANSPORTATION COMMITTEE ADOPTION OF THE AGENDA 1. Quarterly Briefing on Dover/Kent County Metropolitan Planning Organization (MPO) Projects (Marilyn Smith, Director of Dover/Kent Metropolitan Planning Organization) (Committee Action Not Required) ADJOURNMENT OF THE SAFETY ADVISORY AND TRANSPORTATION COMMITTEE MEETING 1

COUNCIL COMMITTEE OF THE WHOLE MEETING - March 01, 2022 PAGE 2 LEGISLATIVE, FINANCE, AND ADMINISTRATION COMMITTEE ADOPTION OF THE AGENDA 2. Evaluation of Bids – Trailer Mounted Generator (Jason Lyon, Director of Water and Wastewater) (Staff recommendation: award the contract to Fidelity Engineering, LLC, d/b/a Fidelity Power Systems, for the City of Dover Trailer Mounted Generator, Bid #22-0022WW, for the amount of $151,672.) 3. Draft Annual Comprehensive Financial Report (Lori Peddicord, Controller/Treasurer) (Staff recommendation: Staff recommends acceptance of the draft report) 4. Report on Payment In Lieu Of Taxes (PILOT) (Dave Hugg, City Manager) (Committee Action Not Required) ADJOURNMENT OF THE LEGISLATIVE, FINANCE, AND ADMINISTRATION COMMITTEE MEETING ADJOURNMENT OF THE COUNCIL COMMITTEE OF THE WHOLE MEETING THE AGENDA ITEMS AS LISTED MAY NOT BE CONSIDERED IN SEQUENCE. PURSUANT TO 29 DEL. C. §10004(e)(2), THIS AGENDA IS SUBJECT TO CHANGE TO INCLUDE THE ADDITION OR THE DELETION OF ITEMS, INCLUDING EXECUTIVE SESSIONS, WHICH ARISE AT THE TIME OF THE MEETING 2

Item 1. Marilyn J. Smith, Executive Director www.doverkentmpo.org Dover City Council Safety Advisory and Transportation Committee Committee of the Whole MPO Quarterly Update March 1, 2022 3

What is an MPO? Item 1. (Metropolitan Planning Organization) • MPOs are federally mandated and mostly federally funded (80% federal, 20% state and local) • All urban areas over 50,000 in population are required to have an MPO if federal funds will be spent on transportation improvements • Transportation planning and policy-making organizations o We’re all about infrastructure o Everything that needs to be in place to get you from point A to point B, regardless of which mode of transportation you’re using o Which projects are coming up that need federal funding • Coordinate with DelDOT, DART and municipalities to prioritize projects and set spending levels for federal funds designated for transportation projects • Work with partners on issues such as air quality, environmental justice, safety, economic growth, public mobility • Focused on public input and participation • D/KC MPO is your transportation planning partner 4

Dover / Kent County MPO Item 1. • Dover/Kent County MPO has existed since 1992 • Cover Kent County – 586 square miles, 3 cities and 17 towns • Long-range plan or MTP (Metropolitan Transportation Plan) o What Kent County will need over the next 20 years o “Innovation 2045” adopted January 2021 – www.doverkentmpo.org/innovation2045 o Use the MTP to create a TIP (Transportation Improvement Plan) – goals and priorities for the immediate four years o Must match DelDOT priorities/plan o Amended as new projects are studied and recommendations are made 5

Item 1. More about the MTP and CTP Why they matter to municipalities in Kent County • Every two years the DelDOT develops a 6-year Capital Transportation Program (CTP) that identifies anticipated capital investments o This program is developed in cooperation with the MPOs o The program provides information on various DelDOT capital and maintenance programs and on the estimated cost expenditures for the project phasing of a capital project that are anticipated in each specific fiscal year • The MPO submits recommended projects to DelDOT for inclusion in the CTP • Project recommendations come from the MPO TIP (transportation projects for which federal funding will be sought over a three-year period) and MTP (transportation investment decisions through the year 2045) • The TIP and MTP prioritize projects that come from studies the MPO has conducted, municipalities’ comprehensive plans, regional planning documents, etc. • Municipalities can submit potential projects to the MPO for consideration, every calendar year, usually in January or February 6

Recently Completed Projects Item 1. • Banning and Clarence Streets Study – w/Century Engineering o Improve traffic circulation in the area o Adopted by MPO Council November 2021 and forwarded to DelDOT for further action • Dover Air Cargo Freight Access – w/Century Engineering o Identify improvements that would enhance connections and access to the Central Delaware Aviation Complex at DAFB and the Garrison Oak Business and Technology Center o Adopted by MPO Council September 2021 and City of Dover, KEP and DelDOT for further action • Dover Bike and Pedestrian Plan Update – w/WRA o Adopted by MPO Council May 2021 and forwarded to the City of Dover for further action • Harrington Intermodal Freight Terminal Feasibility – w/WRA o City of Harrington is updating its comprehensive plan o Identified three parcels for a possible multimodal freight terminal supporting industrial, warehouse and office park uses o Explore the feasibility of establishing a multimodal freight terminal servicing rail and truck logistical operations in Kent County and the region o Develop a master plan for the terminal and associated industrial development on the three parcels o Adopted by MPO Council September 2021 and forwarded to the City of Harrington for further action 7

Current Projects Item 1. • Rail Corridor Industrial Land Use – MPO in-house o Identify appropriate available land adjacent to rail corridors which could be designated and preserved for industrial use o Expected project completion, June 2022 • Bowers Road (Rt. 18) & Main Street Bike & Pedestrian Improvements – MPO in-house & w/WRA o Provide as assessment of existing conditions for biking and walking in the Town as well as along Rt 8 o Develop specific recommendations, an implementation strategy and potential funding sources o Expected project completion, June 2022 • East-West Freight Route Feasibility Analysis – w/WRA o Determine the most beneficial and effective improvement to East-West freight routes o Identify future truck-related improvements to incorporate into the MPO’s MTP o Expected project completion, June 2022 • Delaware Freight Plan Update – partnership w/ federal, state, MPOs, WRA, etc. o The Delmarva Freight Plan was approved in 2015, time for the plan to be updated o Summarize current and future freight planning and transportation needs to enhance freight and goods movement and related economic opportunities o Expected project completion, December 2022 8 continued

Current Projects Item 1. • McKee Road / Saulsbury Road Corridor – w/Century Engineering o Evaluate impacts from the POW/MIA Parkway and future development on this corridor while evaluating all aspects of the corridor including existing and future capacity needs, transit connections and bicycle and pedestrian facilities o Develop recommendations for reducing traffic congestion and improving safety conditions o Expected project completion, June 2023 • Cheswold TID (Transportation Improvement District) – w/WRA o Town of Cheswold has completed its comprehensive plan update o Developing the future land use forecast o Developing TID boundaries, agreement, fee schedule, etc. • TID Support, Little Heaven and South Frederica – w/WRA o It is a priority of Kent County to establish transportation improvement districts o DelDOT is seeking support with conducting traffic counts, developing concept plans for infrastructure projects, and cost estimating required infrastructure improvements 9

FY23 Project Development Item 1. • Municipalities and partners submit planning project ideas and study requests for consideration in the FY23 UPWP • MPO evaluates and prioritizes all submitted requests, with attention toward supporting the goals and objectives articulated in our long-range plan, Innovation 2045 Metropolitan Transportation Plan (MTP) • MPO partners typically contribute 20% to any selected transportation study contract, specifically negotiated at the time a project is selected for inclusion in the FY23 UPWP • Recommendations were received (32 total) by January 20, 2022, in the process of evaluating and prioritizing, determining how much project funding will be available for FY23 10

Parklet Pilot Project (FY22) Item 1. FHWA STIC (State Transportation Innovation Council) Grant • Dover/Kent County MPO (D/KC MPO) is working with Delaware Commute Solutions and the Air Quality Partnership to develop and implement a Parklet Pilot Program o Introduce the parklet concept to municipal leaders and residents. o Create more communal, enjoyable, healthy, and vibrant public spaces, while encouraging re-imagining small portions of the urban landscape from ordinary car-storage spaces into beautiful public space assets for all to enjoy. o Designed to provide opportunities for behavior change, traffic calming, and connect to multi-modal facilities. o Could offer economic development opportunities. • D/KC MPO will: o Acquire a “mobile parklet” that can be loaned to Kent County municipalities and other partners for used as a pilot, for special events, etc. o Solicit feedback from the public via onsite parklet kiosks with a QR Code scan survey. Results will be used to modify programming directed at public behavior change. o Create and administer a Parklet Mini Grant program for Kent County municipalities to apply for and receive partial reimbursement for parklet implementation (purchase of equipment, site preparation, signage, etc.). Reimbursement will only be provided if the municipality meets certain transportation use requirements. o Develop a Parklet How-to Guide specific to Kent County. Particular attention will be paid to sample local ordinances, liability issues, equipment options and specifications, accessibility, etc. 11 o Provide technical assistance to municipalities seeking to adopt a parklet program.

Item 1. MAPITT • An app that lets the public report transportation issues or share ideas, on the spot • Available on Google Play and Apple App Store • Let your voice be heard • See the MAPITT Issue Map here 12

Item 1. Questions? Connect with Us - #doverkentmpo Thank you! 13

Item 2. CITY OF DOVER, DELAWARE ACTION FORM PROCEEDING: Council Committee of the Whole (Legislative, Finance and Administration) DEPARTMENT OF ORIGIN: Water & Wastewater SUBMITTED ON: February 17, 2022 PREPARED BY: Jason A. Lyon, P.E., Director of Water & Wastewater REVIEWED BY: Dave S. Hugg, III, City Manager and Lori Peddicord, Controller / Treasurer SUBJECT: Evaluation of Bids – Trailer Mounted Generator TIMETABLE: Notice to proceed to be issued within thirty (30) days of Council approval. Delivery anticipated to be completed in one hundred and twenty (120) calendar days. RELATED PROJECT: X REFERENCE: X EXPENDITURE REQUIRED: $151,672 AMOUNT BUDGETED: $148,300 FUNDING SOURCE (Dept./Page in CIP & Budget): Department of Water & Wastewater- Water Treatment and Production – Vehicle Replacement CIP page 194, Replace 2007 Kohler Generator Trailer Mounted #604, Account No.: 401-40-76-99-000-54023. Shortfall to be covered by savings in project WQ2202 – Misc. Emergency Water Repairs. STAFF RECOMMENDATION: Award the contract to Fidelity Engineering, LLC d/b/a Fidelity Power Systems, for the City of Dover, Trailer Mounted Generator, Bid #22-0022WW, for the amount of $151,672. BACKGROUND AND ANALYSIS: The Fiscal Year 2022 Capital Improvement Plan includes funding for replacement of a 2007 Trailer Mounted Generator. This equipment is used to supplement power loss at a water production well. The bid was advertised to the public as an Invitation to Bid in accordance with the City’s purchasing policy by the City’s Purchasing Agent under ITB #22-0022WW. Bids were opened on January 19, 2022. The City of Dover received one (1) bid shown in the table below: CONTRACTOR LOCATION BASE BID FIDELITY POWER SYSTEMS SPARKS, MD $151,672 14

Item 2. The shortfall of this bid will be supplemented by a budget amendment from the surplus in the Misc. Emergency Water Repairs project. A breakdown of the funding sources in provided below: Funding Description Current Spent / Savings / Requested Proposed Source Budget Encumbered Remaining Change Budget Remaining Water Vehicle #604 – Trailer $148,300 $0 $0 $3,372 $151,672 Mounted Generator Water WQ2202 – Misc. $85,000 $54,096 $30,904 ($3,372) $27,532 Emergency Water Repairs City staff reviewed the submission and found that Fidelity Power Systems bid met all requirements for the qualifications of the bid. Staff recommends awarding the contract to Fidelity Power Systems in the amount of $151,672 for the Project. 15

©2022 CliftonLarsonAllen LLP Item 3. City of Dover, Delaware Audit Results Year Ended June 30, 2021 March 1, 2021 WEALTH ADVISORY | OUTSOURCING | AUDIT, TAX, AND CONSULTING 16 Investment advisory services are offered through CliftonLarsonAllen Wealth Advisors, LLC, an SEC-registered investment advisor

©2022 CliftonLarsonAllen LLP Item 3. Contents We welcome the opportunity to meet with you to Content Page discuss the results of our audits of the financial statements of the City of Dover, Delaware for the year Scope and Deliverables ended June 30, 2021. We completed our audit and have Scope and Deliverables 3 issued our report dated January 31, 2022. Required Communications CLA exists to create opportunities for our clients, our Industry and Firm Required Communications 4 people, and our communities. We achieve this goal by Industry Trends and Developments living the CLA Promise: to know you and help you. The contact at CLA in connection with this communication is GASB Pronouncements 7 listed below: ARPA 8 Remi Omisore, CPA, MBA, CISA, CIA Remi.Omisore@CLAConnect.com (410)308-8157 17 2

©2022 CliftonLarsonAllen LLP Scope and Deliverables Item 3. Scope of the Engagement (Article IV, Section 46 of the City Charter) Issue an opinion on the City’s Financial Statements Single Audit - Audit of the Schedule of Expenditures of Federal Awards Responsibilities Management is responsible for the preparation and fair presentation of these financial statements. Auditors' responsibility is to express opinions on these financial statements based on an audit and to conduct the audit to obtain reasonable assurance that the financial statements are free from material misstatement. Conclusion Unmodified Opinion Required communications - Communications to those charged with governance on key components Report on internal control and compliance Report on the Schedule of Expenditures of Federal Awards 18 3

Accounting Principles ©2022 CliftonLarsonAllen LLP Other Accounting Auditors Estimates Required Communications Required Communications Item 3. Audit Key Difficulties Disclosures Audit Adjustments Topic Communication Our Responsibility • Express an opinion on the fair presentation of the financial statements in conformity with GAAP Under Generally • Plan and perform the audit to obtain reasonable, but not absolute, assurance that the financial Accepted Auditing statements are free of material misstatement Standards • Evaluate internal control over financial reporting • Utilize a risk-based audit approach • Communicate significant matters to appropriate parties Planned Scope and • Performed the audit according to the planned scope and timing previously communicated Timing of the Audit Other Information in • Financial statements may only be used in their entirety Documents Containing • Our approval is required to use our audit report in a client prepared document the Audited Financial • We have no responsibility to perform procedures beyond those related to the financial statements Statements 19 4

Accounting Principles ©2022 CliftonLarsonAllen LLP Other Accounting Auditors Estimates Item 3. Required Communications Required Communications Audit Key Difficulties Disclosures Audit Adjustments Topic Communication Significant Accounting Policies • Management is responsible for the accounting policies of the organization • Accounting policies are outlined in Note 2 to the financial statements • No significant changes to the accounting policies during the year • Accounting policies deemed appropriate • No unusual transactions occurred Significant Accounting • An area of focus under a risk-based audit approach Estimates • Significant estimates include: allowance for uncollectible receivables, depreciable lives of fixed assets, compensated absences, fair value of financial instruments, incurred but not reported claims, OPEB and net pension liability, asset retirement obligation for Mckee Run Station • Estimates determined by management based on their knowledge and experience • No management bias indicated • Estimates were deemed reasonable • Estimate uncertainty is disclosed in the financial statements Management Representation • Management provided a signed representation letter prior to finalization of the audit report Letter Other • No difficulties encountered in performing the audit • No issues discussed prior to retention as independent auditors • No disagreements with management regarding accounting, reporting, or other matters • No consultations with other independent auditors 20 5

Accounting Principles ©2022 CliftonLarsonAllen LLP Other Accounting Auditors Estimates Internal Control Matters Required Communications Item 3. Audit Key Difficulties Disclosures Audit Adjustments Topic Communication Purpose • Express an opinion on the financial statements, not on the effectiveness of internal controls. • Our consideration of internal controls was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies and therefore material weaknesses or significant deficiencies may exist that were not identified. In addition, because of inherent limitations in internal control, including the possibility of management override of controls, misstatements due to fraud or error may occur and not be detected by such controls. Material Weakness • Reasonable possibility that a material misstatement would not be prevented or detected and corrected on a timely basis. Significant Deficiencies • Less significant than a material weakness, yet important enough to merit the attention of governance. Restricted Use • This communication is intended solely for the information and use of management, the audit committee, and others within the County, and is not intended to be, and should not be, used by anyone other than these specified parties. Results • No material weaknesses or significant deficiencies identified • Separate management letter issued • Two Passed adjustments (Liability reconciliation and fixed assets) Current Year Changes • Debt Issuance (General Fund $1.5M, Water Fund $675k) • Pension Liabilities/market Performance (OPEB decrease of $14M, Pension decrease of $15M) • GASB 84 Implementation (removal of Downtown Dover, renaming of Agency Funds) 21 6

Governmental Accounting Standards Board ©2022 CliftonLarsonAllen LLP Item 3. Update Effective Dates • 2021 • Statement 84—Fiduciary Activities • Statement 90—Majority Equity Interests • Statement 97—Certain Component Unit Criteria • 2022 • Statement 87—Leases • Statement 89—Accounting for Interest Cost Incurred before the End of a Construction Period • Statement 92—Omnibus 2020 • Statement 93—Replacement of Interbank Offered Rates • 2023 • Statement 91—Conduit Debt Obligations • Statement 94—Public-Private and Public-Public Partnerships and Availability Payment Arrangements • Statement 96—Subscription-Based Information Technology Arrangements 22 7

©2022 CliftonLarsonAllen LLP American Rescue Plan Act (ARPA) Eligible Use Item 3. Categories 23 8

©2022 CliftonLarsonAllen LLP Item 3. Remi Omisore, CPA, MBA, CISA, CIA Principal Remi.Omisore@CLAConnect.com (410)308-8157 Justin Measley, CPA Manager Justin.Measley@CLAConnect.com WEALTH ADVISORY | OUTSOURCING (410)308-8071 AUDIT, TAX, AND CONSULTING 24 Investment advisory services are offered through CliftonLarsonAllen Wealth Advisors, LLC, an SEC-registered investment advisor

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Item 3. ANNUAL COMPREHENSIVE FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2021 Prepared by the Finance Department Lori Peddicord, Controller/Treasurer 27

Item 3. ACKNOWLEDGEMENTS THE CITY OF DOVER’S ANNUAL COMPREHENSIVE FINANCIAL REPORT WAS PREPARED BY THE FINANCE DEPARTMENT TRACEY LISIECKI FINANCIAL REPORTING & ACCOUNTING MANAGER ROBIN DICKERSON ACCOUNTANT II DEBBIE O’BRIEN ACCOUNTANT I SHARON DANIEL ACCOUNT CLERK II CINDY FLETCHER PAYROLL SPECIALIST SPECIAL APPRECIATION IS EXTENDED TO ALL PERSONNEL THROUGHOUT THE CITY FOR THEIR CONTINUED SUPPORT OF THE FINANCE DEPARTMENT. 28

CITY OF DOVER, DELAWARE Item 3. ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR 2021 TABLE OF CONTENTS PAGE INTRODUCTORY SECTION 1 Letter of Transmittal .................................................................................................................................... 3 Certificate of Achievement for Excellence in Financial Reporting ............................................................. 10 Mayor and Members of Council ................................................................................................................ 11 List of Elected Officials .............................................................................................................................. 12 List of Appointed Officials ......................................................................................................................... 13 List of Committees, Commissions, and Boards ......................................................................................... 14 Organization Chart .................................................................................................................................... 16 Vision.......................................................................................................................................................... 17 FINANCIAL SECTION 19 PART A - Report of Independent Public Accountants .............................................................................. 21 PART B - Management’s Discussion and Analysis ................................................................................... 27 PART C - Basic Financial Statements ......................................................................................................... 45 Government-wide Financial Statements Statement of Net Position..................................................................................................................... 47 Statement of Activities ......................................................................................................................... 48 Fund Financial Statements Governmental Funds Balance Sheet ..................................................................................................... 49 Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position ......... 50 Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds ......... 51 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities ........................................................................... 52 Statement of Net Position – Proprietary Funds .................................................................................... 53 Statement of Revenues, Expenses and Changes in Fund Net Position – Proprietary Funds ................ 54 Statement of Cash Flows – Proprietary Funds ...................................................................................... 55 Statement of Net Position – Fiduciary Funds........................................................................................ 56 i 29

CITY OF DOVER, DELAWARE Item 3. ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR 2021 TABLE OF CONTENTS PAGE FINANCIAL SECTION – CONTINUED Statement of Changes in Net Position – Fiduciary Funds ................................................................... 57 Notes to Financial Statements Index - Notes to Financial Statements ................................................................................................ 59 Notes to Financial Statements ............................................................................................................ 61 Part D - Required Supplementary Information ............................................................................... 123 General Fund – Schedule of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual (Non-GAAP Basis).................................................................................................................... 125 Police Pension Fund Schedule of Changes in Net Pension Liability, Related Ratios........................................................... 127 Schedule of Employer Contributions................................................................................................. 127 Schedule of Investment Returns ....................................................................................................... 127 Net Pension Liability .......................................................................................................................... 128 General Employee Pension Fund Schedule of Changes in Net Pension Liability, Related Ratios........................................................... 129 Schedule of Employer Contributions................................................................................................. 130 Schedule of Investment Returns ....................................................................................................... 130 Net Pension Liability .......................................................................................................................... 130 Delaware Public Employee Retirement System – County and Municipal Police and Firefighter’s Pension Plan Schedule of the City of Dover’s Proportionate Share of the Net Pension Liability ........................... 132 Schedule of the City of Dover’s Contributions .................................................................................. 132 Other Post-Employment Benefits Trust Fund Schedule of Changes in Net OPEB Liability, Related Ratios............................................................... 133 Schedule of City’s Contributions ....................................................................................................... 134 Schedule of Investment Returns ....................................................................................................... 134 Notes to Required Supplementary Information Governmental Budgets...................................................................................................................... 135 ii 30

CITY OF DOVER, DELAWARE Item 3. ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR 2021 TABLE OF CONTENTS PAGE FINANCIAL SECTION – CONTINUED Part E - Supplementary Information....................................................................................................... 137 General Fund Combining Schedules ............................................................................................. 139 Combining General Fund Balance Sheet ........................................................................................... 140 Combining Schedule of Revenues, Expenditures and Changes in Fund Balances of the General Fund (Non-GAAP Basis) .............................................................................................................................. 141 Governmental Capital Projects Fund – Schedule of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual (Non-GAAP Basis) .............................................................................. 142 Financial Statements Special Revenue Funds ................................................................................ 143 Special Revenue Funds – Combining Balance Sheet ......................................................................... 145 Special Revenue Funds – Combining Statement of Revenues, Expenditures and Changes in Fund Balances ............................................................................................................................................. 146 Police Federal Grants – Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget (Non-GAAP Basis) and Actual ............................................................................................................ 147 Police State Grants – Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget (Non-GAAP Basis) and Actual ............................................................................................................ 148 Library Grants – Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget (Non- GAAP Basis) and Actual ..................................................................................................................... 149 Municipal Street Aid Fund – Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget (Non-GAAP Basis) and Actual ................................................................................................ 150 Housing Programs – CDBG – Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget (Non-GAAP Basis) and Actual ................................................................................................ 151 State of Delaware Department of Transportation Grants – Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget (Non-GAAP Basis) and Actual .................................................... 151 Substance Abuse Prevention Program – Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget (Non-GAAP Basis) and Actual ............................................................................... 152 Electronic Red Light Safety Program – Schedule of Revenues, Expenditures and Changes in Unreserved Fund Balance – Budget (Non-GAAP Basis) and Actual ...................................................................... 152 Lodging Tax Fund – Schedule of Revenues, Expenditures and Changes in Unreserved Fund Balance – Budget (Non-GAAP Basis) and Actual ................................................................................................ 153 iii 31

CITY OF DOVER, DELAWARE Item 3. ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR 2021 TABLE OF CONTENTS PAGE FINANCIAL SECTION – CONTINUED Realty Transfer Tax Fund – Schedule of Revenues, Expenditures and Changes in Unreserved Fund Balance – Budget (Non-GAAP Basis) and Actual ............................................................................... 153 Proprietary Fund Types - Enterprise Funds ................................................................................... 154 Electric Revenue Fund – Schedule of Revenues and Expenses – Budget (Non-GAAP Basis) and Actual ........................................................................................................................................................... 156 Electric Improvement & Extension Fund – Schedule of Revenues and Expenses – Budget (Non-GAAP Basis) and Actual ............................................................................................................................... 157 Combining Non-Major Enterprise Funds Balance Sheet ................................................................... 158 Combining Schedule of Revenues, Expenses and Changes in Fund Net Position – Non-Major Enterprise Funds ................................................................................................................................................. 159 Combining Schedule of Cash Flows – Non-Major Enterprise Funds ................................................. 160 Water Fund Schedule of Revenues and Expenses Budget (Non-GAAP Basis) and Actual ................ 161 Water Improvement & Extension Fund Schedule of Revenues and Expenses Budget (Non-GAAP Basis) and Actual.......................................................................................................................................... 162 Wastewater Fund Schedule of Revenues and Expenses Budget (Non-GAAP Basis) and Actual ....... 163 Wastewater Improvement & Extension Fund Schedule of Revenues and Expenses Budget (Non-GAAP Basis) and Actual ............................................................................................................................... 164 Proprietary Fund Types - Internal Service Funds ........................................................................... 165 Worker’s Compensation – Schedule of Revenues and Expenses – Budget (Non-GAAP Basis) and Actual ........................................................................................................................................................... 166 Fiduciary Fund Types – Pension and Other Employee Benefit Trusts ............................................. 167 Police Pension, Employee Pension, and Other Post-Employment Benefit (OPEB) - Combining Statement of Net Position – Fiduciary Funds .................................................................................... 167 Police Pension, Employee Pension, and Other Post-Employment Benefit (OPEB) - Combining Statement of Changes in Net Position – Fiduciary Funds ................................................................. 168 Fiduciary Fund Types – Custodial ................................................................................................. 169 Combining Statement of Changes in Net Position – Custodial Funds ............................................... 169 iv 32

CITY OF DOVER, DELAWARE Item 3. ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR 2021 TABLE OF CONTENTS PAGE STATISTICAL SECTION 171 Net Position by Component .............................................................................................................. 174 Changes in Net Position..................................................................................................................... 175 Fund Balances of Governmental Funds ............................................................................................. 177 Changes in Fund Balances of Governmental Funds .......................................................................... 178 Governmental Activities Tax Revenues by Source ........................................................................... 180 Assessed and Estimated Actual Value of Taxable Property ............................................................. 181 Property Tax Rates – All Direct and Overlapping Governments with the Capital School District ..... 182 Principal Tax Payers ........................................................................................................................... 183 Property Tax Levies and Collections .................................................................................................. 184 Ratios of Outstanding Debt by Type.................................................................................................. 185 Ratio of Net General Obligation Bonded Debt to Assessed Value and Net Bonded Debt Per Capita ........................................................................................................................................................... 186 Ratio of Annual Debt Service Expenditures for General Bonded Debt to Total General Expenditures ........................................................................................................................................................... 187 Computation of Direct and Overlapping Debt with the Capital School District ................................ 188 Computation of Legal Debt Margin ................................................................................................... 189 Revenue Bond Coverage – Electric Revenue Bonds .......................................................................... 190 Revenue Bond Coverage – Water Bonds........................................................................................... 191 Revenue Bond Coverage – Wastewater Bonds ................................................................................. 192 Top Ten Water and Wastewater Utility Customers .......................................................................... 193 Top Ten Electric Utility Customers .................................................................................................... 194 Demographic and Economic Statistics .............................................................................................. 195 Major Employers by Industry – Current Year and Nine Years Ago.................................................... 196 Full-time Equivalent City Government Employees by Function – Budgeted ................................... 197 Operating Indicators and Capital Assets Used in Operations ........................................................... 198 Summary of Insurance....................................................................................................................... 201 v 33

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2021 Annual Comprehensive Financial Report for the City of Dover, Delaware Item 3. INTRODUCTORY SECTION LETTER OF TRANSMITTAL CERTIFICATE OF ACHIEVEMENT FOR EXCELLENCE IN FINANCIAL REPORTING MAYOR AND MEMBERS OF COUNCIL LIST OF ELECTED OFFICIALS LIST OF APPOINTED OFFICIALS LIST OF COMMITTEES, COMMISSIONS AND BOARDS ORGANIZATION CHART VISION 35 1

2021 Annual Comprehensive Financial Report for the City of Dover, Delaware Introductory Section Item 3. 2 36

2021 Annual Comprehensive Financial Report for the City of Dover, Delaware Introductory Section Item 3. February 17, 2022 The Honorable Mayor, Honorable Council President, Members of the City Council and Citizens of the City of Dover Dover, Delaware 19901 Ladies and Gentlemen: I am pleased to submit the Annual Comprehensive Financial Report of the City of Dover for the fiscal year ended June 30, 2021. This report is published to comply with the provisions of Article IV, Section 46 of the City Charter. It is also intended to provide financial data to the tax and ratepayers, bondholders, trustees, banks, federal and state agencies, and the financial community at large. Management assumes full responsibility for the completeness and reliability of the information contained in this report, based upon a comprehensive framework of internal control that it has established for this purpose. Because the cost of internal control should not exceed anticipated benefits, the objective is to provide reasonable, rather than absolute, assurance that the financial statements are free of any material misstatements. The financial statements in this report have been audited by CliftonLarsonAllen LLP, an independent firm of certified public accountants as required by Section 46 of the City Charter. CliftonLarsonAllen LLP has provided an unmodified opinion on the City of Dover financial statements for the year ended June 30, 2021. The report of independent public accountants is located at the front of the financial section of this report. Management’s Discussion and Analysis (MD&A) provides a narrative introduction, overview, and analysis of the basic financial statements. The MD&A complements this letter of transmittal and should be read in conjunction with it. Our MD&A can be found immediately following the report of our independent auditors. THE REPORTING ENTITY AND ITS SERVICES The City of Dover was incorporated in 1829 under a Charter granted by the General Assembly. Dover is the Capital of the State of Delaware and is in the central part of the State. It is home to the State Governor’s office, legislative offices, and is the County seat for Kent County. 3 37

2021 Annual Comprehensive Financial Report for the City of Dover, Delaware Introductory Section Item 3. The City currently occupies a land area of 23.87 square miles and serves a population of approximately 38,412. Dover’s governing body is composed of a Mayor and nine Council Members, with one Council Member elected by Council to serve as Council President. Two members of City Council are elected from each of the four districts; the ninth Council member of Council and the Mayor are elected at-large. The Council is responsible for all matters of policy and is the authority for levying taxes, securing revenues, authorizing expenditures of City funds and incurring City debts. The City of Dover operates under a Council – Manager form of government. The City provides a full range of services as mandated by the Charter or adopted by the City Council. They include police protection, street, sanitation and stormwater maintenance, recreation, library, community development, economic development, public improvements, planning and zoning, safety inspections, electric power generation and distribution, water and wastewater services, legislative services, and general administration. Within the City is a volunteer fire company that is autonomous. Under established criteria, the operations of the Robbins Hose Fire Company are not a part of this report. However, the City provides financing for dispatching, personnel costs, most of the building and equipment maintenance, supplies, and contractual services. The City also provides funding to Robbins Hose for payments on fire engine no. 5 and fire engine Squad no. 1. These payments are grouped under the Fire Department and are included in the General Fund. The Fire Chief is elected by the volunteer members of the Fire Company. The City Council traditionally adopts the election and officially appoints the Fire Chief for a one-year term. Therefore, the Fire Department is included in the City organization chart. The Capital School District does not meet the established criteria for inclusion in the reporting entity and, accordingly, is excluded from this report. The City Council shall, on or before the second Monday of June in each year, adopt a budget for the succeeding fiscal year. This annual budget serves as the foundation for the City of Dover’s financial planning and control. The budget is prepared by fund and department. With approval of the City Manager and Controller/Treasurer, Department Heads may transfer resources within or between departments, except for capital project budgets. Transfers between funds and transfers of capital project budgets, however, need special approval from the City Council. ECONOMIC CONDITION AND FUTURE GROWTH Dover continues to be the dominant center of population, employment, commerce, education, and culture in Central Delaware. Economic growth continues in all sectors with construction and permit activity occurring during the year, showing modest recovery from the effects of a nation-wide pandemic. Population and employment growth remain steady, but consumer spending has been reduced and some retail market softness could continue to impact utility and other revenues. Growth in the health care and commercial/retail sectors is especially strong, with significant new projects occurring throughout the City. New manufacturing businesses are creating significant employment opportunities and adding to the City and County economies. Revitalization of the historic Downtown commercial core continues 4 38

2021 Annual Comprehensive Financial Report for the City of Dover, Delaware Introductory Section Item 3. somewhat slowly, but increasingly successful projects to include the older nearby residential neighborhoods is ongoing. Total value of commercial construction in FY21 was approximately $131.9 million, up significantly from the prior year because of several large projects. Over 1,700 building permits of all types were issued last year, up from the prior year, but only about 3,500 business licenses were issued, down slightly from the previous year. Year to year comparisons is not necessarily indicative of the health of Dover’s economy due to the timing of activity and the variability of general economic factors. Growth and development trends during fiscal year 2021 are discussed below. Population Growth The decennial census was conducted in 2020 and set Dover’s April 1, 2020 population at 39,403 (an increase of about 9.3% since 2010). Dover’s population is projected to grow to 41,032 by 2030, with a sustained growth rate of about 5% during each of the next ten-year periods. Statistically, Dover’s population is younger than that of the County or the State, with a slightly lower proportion of population of senior citizens as well. Working-age adults (23-64) are projected to remain stable as a percentage of the City’s population, making up slightly less than half of the City’s population through 2030. Residential Development Dover’s residential construction market continues to recover from the prior recession, as older developments are seeing increased build-out and the market for apartment units remains strong. Home sales for new and older dwellings are reported to be strong as well. Significant activity occurred in Nottingham Meadows, Patriot Village, Lexington Green, Oak Shadows and elsewhere throughout the City. These projects, and prospective new subdivision projects are expected to have a positive impact on Dover’s rate of population growth. Downtown Dover Redevelopment Despite the limitations imposed by COVID-19, revitalization of the historic Downtown core is continuing in both commercial and residential sectors, with potential new businesses locating in existing spaces, primarily along Loockerman Street. Through the efforts of groups like National Council on Agricultural Life and Labor (NCALL) and Habitat for Humanity, numerous deteriorated and blighted residential properties have been demolished and are being replaced by new owner-occupied dwellings, transforming entire block-fronts adjacent to the commercial core. An Artisanal Market was under construction in the downtown as well, building on prior successful farmer’s markets. Retail/Commercial Development This sector continues to show significant growth with new and expanded locations along the major highway corridors and throughout the City. Century Engineering and Chesapeake Utilities completed new buildings along the Bay Road Corridor. Plans for a new facility for the Delaware Solid Waste Authority are in the works. An office 5 39

2021 Annual Comprehensive Financial Report for the City of Dover, Delaware Introductory Section Item 3. for Delaware State Police/Homeland Security, and other commercial buildings and renovations were also completed in that portion of the City. Plans are also underway for several new restaurants and other businesses along US 13, and along the Route 8 corridor. Other projects include the construction of the Grotto Pizza Dough Factory, Bob’s Discount Furniture, Red Robin, the conversion of the former Acme grocery to a Hobby Lobby craft goods store, along with numerous renovations throughout the City. Manufacturing, Health Care, Institutional and Other Sectors Development Dover’s economy is well balanced across a range of sectors including manufacturing, health care, government and military, education, and industrial categories. Manufacturing showed strong growth during FY 2021, with both small and large firms such as Shore Industries and Avalon, and Delmarva Corrugated Packaging (a 450,000 square foot+ state of the art new manufacturer of corrugated paper packaging), making Dover home. In education, Delaware State University completed their 620-bed dormitory complex replacing outdated existing facilities and announced plans to acquire Wesley College in downtown Dover to expand health related offerings, and other uses. The Capital School District began construction of two middle schools and completed renovations of William Henry school damaged a year earlier by a tornado. Two large governmental projects were in development: planning and site acquisition for a future Family Court facility is underway; and construction of a new, relocated U.S. Post Office for Dover is nearing completion, both locations are within the downtown area. Summary Fiscal Year 2021 saw a continuation of strong growth in the state capital. Dover remains the geographic and economic center of the County, and is well posed for future growth, development, and reinvestment. LONG-TERM FINANCIAL PLANNING AND MAJOR INITIATIVES The City Council continues its focus and commitment to improving the quality and reliability of our City assets and infrastructure to continue to provide safe and reliable municipal services to the citizens of Dover. The City has $0.3 million in street paving and replacement of sidewalk projects in accordance with its street, concrete and alley funding underway in FY21 to include: William Street, North State St, and Lakewood Place to Fairview Avenue. The parks and recreation department have improvements and construction underway at numerous parks within the City, totaling $0.3 million. Other asset additions totaling $0.7 million included improvements to existing infrastructure at the police department to include a CAT5 Wiring upgrade, communications center workspace and alarm panel improvements and the chiller replacement. The library saw improvements in the way of surveillance and audio/visual upgrades. $0.7 million was spent on vehicle and equipment purchases. The electric utility had fixed asset additions totaling $2.2 million in fiscal year 2021. Many projects involved our Electric Engineering team as well as our Transmission and Distribution crews. The installation of transformers, conductors, and metering work of approximately $1.3 million completed in the areas known as Greentree, Saint Jones Commons, Eden Hill, Verona Woods, and Lakeland Business Park. Completed projects include: Division Street overhead rebuild, Roadway light LED conversion, Ann Avenue, English Village and Beechwood transformer & conductor restoration, as well as Townsend Boulevard and Miller Drive Distribution upgrades. There were also several smaller projects involving line maintenance, pole design and switchgear replacements. Additionally, the 6 40

2021 Annual Comprehensive Financial Report for the City of Dover, Delaware Introductory Section Item 3. City completed the first and third phases of the new ERP System amounting to $0.4 million, and the electric utility had vehicle and equipment additions of $0.2 million. The water utility had capital improvements totaling $8.4 million. This total included $7.7 million in upgrades to the water treatment plant. The City also recognized $0.6 million of improvements to include water meter replacements, improvements to the Bulk Water Station, and Water Quality Improvements. Additionally, there was a vehicle transferred into this utility from the electric utility. The wastewater utility had capital improvements totaling $1.3 million. Approximately $0.7 million of this total included Inflow Infiltration removal, $0.3 million for sewer replacements, $0.2 million for Scada equipment updates, as well as smaller projects such as meter replacements, and pumpstation upgrades to the following pumpstations: Puncheon Run, Lafferty Lane, College Road and Turnberry. In addition to capital improvements, there was a repair to the Jet trucks. The City maintains a five-year Capital Investment Plan which serves as its planning and budgeting tool to program upgrades and replacements to its equipment, facilities, and infrastructure. As part of this process, operating expenses are identified, and funding sources are determined. Managers are required to rank capital expenditures by criticality, based on the impacts on customer services and revenue losses. The fiscal year 2021/2022 Capital Investment Plan includes $3.3 million for vehicles and equipment and $31.2 million of infrastructure and utility improvement projects. The Capital Investment Plan is presented to City Council each year during the budget workshops, and the final plan is approved by City Council along with the annual budget. In fiscal year 2022, the General Fund capital improvements budget is $4.0 million. The Public Works-Streets department has an approved capital project budget of $1.2 million for Street, Concrete and Alley program items. The Public Works-Stormwater department has an approved budget of $1.9 million for miscellaneous storm sewer, dam, and basin improvements to include Persimmon Park Place, and East Lake Garden. The Parks and Recreation department has earmarked funding of $0.8 million for park improvements at numerous locations throughout the City. There are smaller appropriated amounts for Information Technologies, Library and the Police department. The Water Fund budget includes capital improvements of $2.0 million. Approximately $1.7 million will be used for water quality improvement projects and future well installation. The remaining $0.3 million is earmarked for use in the wellhead redevelopment program and for miscellaneous emergency repairs. The total Wastewater Fund capital improvements budget is $0.6 million and will be used for inflow and infiltration removal, various pump station replacement/improvements and miscellaneous emergency repairs. The Electric Fund is projecting $21.5 million in capital improvements for FY22. The new development budget totals $1.1 million. The plant decommissioning project involving the dismantlement of the McKee Run Power plant is budgeted at $9.0 million and will most likely span several years. The Garrison Oak Substation was included in the FY22 budget at $7.0 million. The electric engineering division has an array of capital improvement projects totaling $4.4 million of this proposed amount there are software and equipment upgrades for such things as SCADA Hardware Replacement and UPS Batteries, Small Cell Wireless Improvements and FLIR Camera ($0.7 million). Also included in the $4.4 million referenced above, there are a number of projects throughout the City 7 41

2021 Annual Comprehensive Financial Report for the City of Dover, Delaware Introductory Section Item 3. to include Kentwood Trailer Park, Bay Road, Popular Lane and Townsend Boulevard, whether converting and/or replacing existing lines ($3.7 million). The Electric Department also has $0.2 million budgeted in anticipation of completing the LED lighting conversion project allowing the City to move toward LED lighting for Roadway, Decorative and Security lights. There are two smaller projects scheduled for the Butner office location and Weyandt Hall totaling $0.3 million. FINANCIAL POLICIES AND FINANCIAL PLANNING Unassigned fund balances in the General Fund of 21.8% exceeded the policy guidelines of a minimum of 8% and maximum of 12% of current year operating revenues as approved by City Council in the City of Dover financial policies. This overage was attributed to higher than anticipated Transfer Tax receipts as well as lower than budgeted expenditures along all functions of the government due to attrition and vacancies, and as a result, the fiscal year 2022 budget will be adjusted to address the overage. The water and wastewater utility guidelines are to maintain a minimum budget balance of at least 8% and no greater than 17% (two months) of the current year operating revenues. The current budget balances as of June 30, 2021 for the utilities are water at 22.7% of the actual water revenues and wastewater at 4.5% of the actual wastewater revenues. Both budget balances are outside of the guidelines and will be addressed in the fiscal year 2022 budget. The electric utility is to maintain a minimum budget balance of at least 12% (45 days) of the current year operating revenues, less the Distribution of Earnings – PCA Credit. If the balances fall below the established percentages, the City Manager is required to submit budgets to bring the balances up to minimum within three years. The electric utility ended the year with a budget balance greater than the 12%, at 28.3%. This was attributed to lower than projected power supply and generation cost and lower than anticipated divisional expense and interfund service fees. The City policies also require non-recurring revenues to be set aside for capital improvements as designated by City Council (reserve accounts) and a $700,000 contingency reserve in the General Fund, $250,000 each for the Water and Wastewater Fund contingency reserves and $750,000 contingency in the Electric Revenue Fund to address unforeseeable natural disasters and insurance losses. All major funds meet the contingency reserve requirements. The water and wastewater utilities impose impact fees, which are reserved by ordinance, on new developments or facilities to assist with financing future expansion projects. The electric utility maintains depreciation and future capacity reserves to assist with asset replacements and system expansions. Financial policies require the electric utility to maintain a minimum of $10.0 million in each of these reserves, with replenishment over seven years when used to finance projects. The City’s financial policies also include an Electric Rate Stabilization Reserve account. The purpose of this reserve is to level off the fluctuations in the wholesale power supply market and in turn provide stable rates to the City’s customers. The reserve balance shall be maintained at a minimum of 10% not to exceed 20% of the purchase power cost in any given year. 8 42

2021 Annual Comprehensive Financial Report for the City of Dover, Delaware Introductory Section Item 3. AWARDS AND ACKNOWLEDGEMENTS The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the City of Dover, Delaware for its annual comprehensive financial report (ACFR) for the fiscal year ended June 30, 2020. This was the thirty-sixth (36) consecutive year that the City of Dover has achieved this prestigious award. To be awarded a Certificate of Achievement, a government unit must publish an easily readable and efficiently organized annual comprehensive financial report. The report must satisfy both generally accepted accounting principles and applicable legal requirements. A Certificate of Achievement is valid for a period of one year only. We believe that our current annual comprehensive financial report continues to meet the Certificate of Achievement Program’s requirements, and we are submitting it to the GFOA to determine its eligibility for another certificate. The Finance Department extends our thanks to you for your continued interest and support in planning and conducting the financial operations of the City in a responsible and progressive manner. I also express my appreciation to the many City employees for their assistance and cooperation during the year in preparation of this report. My appreciation is extended to Mr. David S. Hugg III, City Planner for his assistance with the preparation of the local economy section. The City Finance team continues to work diligently to meet the continuous deadlines upon us as well as support and assist the numerous departments within the City. The employees of the Finance Department are commended for their true pride and dedication as they continue to make this report and each year a success. Respectfully submitted, Lori Peddicord Controller/Treasurer 9 43

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2021 Annual Comprehensive Financial Report for the City of Dover, Delaware Introductory Section Item 3. MAYOR AND MEMBERS OF COUNCIL Matthew J. Lindell, William F. Hare, Fred A. Neil, David L. Anderson, 1st District 2nd District 3rd District 4th District Roy Sudler, Jr., Gerald L. Rocha, Sr., Ralph L. Taylor, Jr., Tricia K. Arndt, 4th District, 1st District 2nd District 3rd District Council President Andre M. Boggerty, Robin R. At-Large Christiansen, Mayor 11 45

2021 Annual Comprehensive Financial Report for the City of Dover, Delaware Introductory Section Item 3. LIST OF ELECTED OFFICIALS June 30, 2021 Length of Term Service Expires Mayor Robin R. Christiansen 7 Years May 2023 City Council At-Large Andre M. Boggerty 1 Month May 2025 First District Matthew J. Lindell 4 Years May 2023 Gerald L. Rocha, Sr. 9 Months May 2025 Second District William F. Hare 10 Years May 2025 Ralph L. Taylor, Jr. 2 Years May 2023 Third District Tricia K. Arndt 1 Month May 2023 Fred A. Neil 6 Years May 2025 Fourth District David L. Anderson 10 Years May 2025 * Roy Sudler, Jr. 6 Years May 2023 * Council President Note: length of service does not reflect previous, non-consecutive service, or interim appointment prior to permanent appointment 12 46

2021 Annual Comprehensive Financial Report for the City of Dover, Delaware Introductory Section Item 3. LIST OF APPOINTED OFFICIALS June 30, 2021 Length Length of of Time Time in with the Position City City Clerk/Assistant Treasurer – Traci A. McDowell 15 Years 32 Years Interim City Manager - Matthew Harline 1 Month 2 Years City Solicitor – Nicholas H. Rodriquez 53 Years 53 Years Deputy City Solicitor – Gary E. Junge 1 Year 1 Year Council President – Roy Sudler, Jr. 1 Month 6 Years City Assessor – Cheryl A. Bundek 12 Years 29 Years City Building Inspector – David S. Hugg III 3 Years 3 Years City Planner – David S. Hugg III 3 Years 3 Years Controller/Treasurer – Lori Peddicord 3 Years 6 Years Fire Chief David Carey 6 Months 1 Year Fire Marshal - Jason A. Osika 5 Years 19 Years Police Chief – Thomas Johnson 1 Year 1 Year Note: length of service does not reflect previous, non-consecutive service, or interim appointment prior to permanent appointment 13 47

2021 Annual Comprehensive Financial Report for the City of Dover, Delaware Introductory Section Item 3. List of Committees, Commissions, and Boards Phillip McGinnis Awards Committee Sandra Taylor Peggy Angel Rufus Mincey, Interim Executive Director/Secretary Ronald R. Gough Georgia Van Sant Dover Public Library Advisory Commission Zachery C. Carter Board of Adjustment Beth Petit De Mange K.C. Sheth, Chair Jill B. Street Arthur G. Ericson, Vice Chair Robert S. Wetherall William A. Hufnal Vacancy, Council Liaison Member James N. Keller Vacancy Richard D. Senato Dover/Kent County MPO Council Board of Assessment Appeals Mayor Robin R. Christiansen William Garfinkel, Accounting, Chair Thomas Burns, R. E. Brokerage of Sales Downtown Dover Partnership Board of Directors John G. Davis, Jr., Undesignated Interim City Manager, Matthew Harline Todd Stonesifer, R. E. Brokerage of Sales City Planner, David S. Hugg III Vacancy, Accounting Mayor Robin R. Christiansen Vacancy, Property Appraisal/Assessments Councilman Ralph L. Taylor, Jr. Councilman Fred A. Neil Construction and Property Maintenance Code Board of Appeals Economic Development Committee Councilman David L. Anderson, Chair Mayor Robin R. Christiansen, Chair Councilman Fred A. Neil Councilman David L. Anderson Councilman Gerald L. Rocha, Sr. Councilman Roy Sudler, Jr. Matthew D. Campana, Rep. of Homeowners Kim I. Adams Charles Martin, Rep. of Local R. E. Industry Assoc. Clayton E. Hammond II Interim City Manager, Matthew Harline Dover Fourth of July Celebration Committee City Planner, David S. Hugg III Mayor Robin R. Christiansen, Chair Diane Laird Andrea Maucher, President/Vice Chair Brett Scott, Vice-President Election Board Jeffrey C. Dill, Treasurer/Secretary At Large: Heather D. Ennis Susan Betts First District: Alfreda F. Dean Justin Strickland Second District: Cherritta L. Matthews Carolyn D. Courtney Third District: James W. Brockton Gail Nemcic Fourth District: M. Milford Caldwell, Jr. Sarah Zimmerman Traci A. McDowell, City Clerk (Liaison Member) Vacancy Ethics Commission Dover Housing Authority Robin F. Case Todd M. Stonesifer Gary Coy Enrico LePore Erika D. Crawford Robert F. Merritt Lisa M. Enright Audrey Daniels Nancy H. Wagner 14 48

2021 Annual Comprehensive Financial Report for the City of Dover, Delaware Introductory Section Item 3. List of Committees, Commissions, and Boards - Continued Dante Jones General Employee Pension Plan Board of Trustees Michael W. Lewis Councilman David L. Anderson Councilman Ralph L. Taylor, Jr. Planning Commission Interim City Manager, Matthew Harline At-Large: Dr. Bobby Jones Controller/Treasurer, Lori Peddicord First District: Kathleen Welsh Robert Gedney First District: Holly L. Malone Ronald Coburn, Jr. Second District: Robert Hartman Carolyn Courtney Second District: Andrea Maucher, Chair Third District: Nicholas A. Adams, Vice Chair Historic District Commission Third District: Vacancy Vacancy (Chair) Business Rep./Resident Fourth District: John H. Baldwin, Sr. Ann Baker Horsey, (Vice-Chair) Professional/Resident Fourth District: Kenneth Roach Eric S. Czerwinski, Professional Mary Terry Mason, Resident Police Pension Plan - Retirement Committee Jonathan N.H. Street, Professional Councilman David L. Anderson Councilman Ralph L. Taylor, Jr. Human Relations Commission Interim City Manager, Matthew Harline At-Large: Sara Herbert Police Chief Thomas Johnson First District: Paul Fleming (Ret. Lt.) Timothy Mullaney, Sr., Chair First District: Joseph C. Simmons (Ret. Captain) Larry Gray Second District: Vacancy (Ret. Sgt.) Steve Rogers Second District: Vacancy Third District: Alan Gaddis, Chair Public Advisory Committee of the Dover/Kent County Third District: Wanda Mullen MPO Fourth District: Rita Mishoe Paige Dr. Shanita A. Powell Fourth District: Vacancy Jonathan Contant Karen McGloughlin Kent County Tourism Board of Directors Albert W. Holmes, Jr. (At-Large Alternate) Councilman Fred A. Neil Safety Advisory and Transportation Committee Kent Economic Partnership Board of Directors Councilman Ralph L. Taylor, Jr., Chair Mayor Robin R. Christiansen Dana Shelton Legislative, Finance, and Administration Committee Vacancy Councilman David L. Anderson, Chair Silver Lake Commission Jonathan D. Contant Vacancy, Chair Daniel T. Shevock John C. DeMarie Other Post-Employment Benefits (OPEB) Board Marie E. Kozel Michael W. Lewis Councilman David L. Anderson Joan M. Winters Councilman Ralph L.Taylor, Jr. Vacancy Interim City Manager, Matthew Harline Vacancy Controller/Treasurer, Lori Peddicord Human Resources Director, Kimberly Hawkins Utility Committee Parks, Recreation and Community Enhancement Councilman Gerald L. Rocha, Sr., Chair Jennifer L. Harris Councilman Andre M. Boggerty, Chair LaVaughn T. McCutcheon 15 49

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2021 Annual Comprehensive Financial Report for the City of Dover, Delaware Introductory Section Item 3. VISION The City of Dover is a place where people want to live! Through the team effort of its elected officials, employees, and citizens, Dover is a clean and safe community, with a future of balanced growth and opportunity where all citizens are heard, enjoy a high quality of life, and diversity is valued. 17 51

2021 Annual Comprehensive Financial Report for the City of Dover, Delaware Introductory Section Item 3. City Hall 18 52

2021 Annual Comprehensive Financial Report for the City of Dover, Delaware Item 3. FINANCIAL SECTION THIS SECTION INCLUDES THE FOLLOWING: PART A – REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS PART B – MANAGEMENT’S DISCUSSION AND ANALYSIS PART C – BASIC FINANCIAL STATEMENTS Government-wide Financial Statements Fund Financial Statements Notes to Financial Statements PART D – REQUIRED SUPPLEMENTARY INFORMATION PART E – SUPPLEMENTARY INFORMATION Combined Fund Statements Budgetary Schedules 19 53

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2021 Annual Comprehensive Financial Report for the City of Dover, Delaware Financial Section – Part B – Management’s Discussion and Analysis Item 3. The City of Dover Management’s Discussion and Analysis For the Year Ended June 30, 2021 The following is a discussion and analysis of the City of Dover’s (the City’s) financial activities for the fiscal year ended June 30, 2021. Readers are encouraged to consider the information presented here in conjunction with additional information provided in our letter of transmittal, which can be found on pages 3-9 of this report, and the City’s financial statements which follow this section. Financial Highlights The City’s assets and deferred outflows of resources exceeded its liabilities and deferred inflows of resources by $251.0 million (net position). Included in this amount is a positive $22.0 million balance in “unrestricted net position”. The total Net Position represents the funds available to meet the City’s ongoing obligations to citizens and creditors. The general government reported an unrestricted deficit of $8.3 million and the business-type activities, Water, Wastewater and Electric funds, reported a positive $30.3 million unrestricted net position. The difference between the unrestricted amounts and the total net position is $229.1 million, of which $74.5 million is restricted primarily for debt and capital construction purposes, and $154.6 million is net investment in capital assets. Total Assets increased for both the governmental and business-type activities in the amount of $2.0 million and $6.2 respectively. Deferred Outflows for the governmental activities decreased $0.4 million and for the business-type activities it decreased $0.9 million. Deferred Inflows increased for both the governmental and business- type activities by $12.1 million and $4.8 million respectively. Liabilities also decreased for both the governmental activities business-type activities by $22.7 million and $8.8 million respectively. • For governmental activities, the city reported: a decrease of $3.3 million invested in capital assets, a decrease in restricted net assets of $0.1 million, and an increase of $15.4 million in unrestricted net position. As a result of its operations, the city recognized a positive change in net position of governmental activities of $12.2 million. The current year’s change in net position is $4.6 million higher than the previous years’ change in net position and is primarily due to decreases in expenses across most functions of government totaling $2.3 million a $2.1 million increase in revenues from the prior year as well as an increase in transfers of $0.3 million. • For business-type activities the city reported: a decrease of $3.3 million invested in capital assets, an increase in restricted net position of $3.1 million and an increase of $9.5 million in unrestricted net position. As a result of its operations, the city recognized a positive change in net position of business-type activities of $9.3 million, which is a decrease from last years’ positive change of $15.0 million driven primarily by reductions of total revenues of $6.1 million. Additionally, there was a net decrease of $0.4 million for charges for services for water, wastewater and electric as well as a reduction of $1.4 million in Capital Grants and Contributions. Other contributing factors were a $0.5 million loss on sale of assets and a significant reduction of earnings on investments totaling $3.8 million. Total expenses decreased in the amount of $0.6 million substantially driven by a decrease in electric expenses of $0.9 million offset by an increase in water and wastewater expenses of $0.4 million. 63 29

2021 Annual Comprehensive Financial Report for the City of Dover, Delaware Financial Section – Part B – Management’s Discussion and Analysis Item 3. Overview of the Financial Statements This discussion and analysis section is intended to serve as an introduction to the City’s Annual Comprehensive Financial Report (ACFR). The ACFR consists primarily of three required components: 1) management’s discussion and analysis (this section), 2) the basic financial statements; and 3) required supplementary information. The ACFR also includes optional supplementary information that provides summary and detail level information, and a statistical section. The basic financial statements are presented in two categories that present different views of the City’s financial condition: • The two government-wide financial statements (pages 47-48) provide both long-term and short-term information about the City’s overall financial position and operations. • The remaining (pages 49-57) fund financial statements focus on specific activities of City government, reporting the City’s operations in more detail than the government-wide statements. The City financial statements can be divided into three categories: governmental funds, proprietary funds, and fiduciary funds. - The Governmental fund statements (pages 49-52) tell how general government services, like community services, planning, public safety, and public works, were financed in the short term as well as what remains for future spending. - Proprietary fund statements (pages 53-55) offer short and long-term financial information about the activities the government operates like businesses, which for the City of Dover are the Electric, Water & Wastewater Funds. - The Fiduciary fund statements (pages 56-57) provide information about the financial relationships in which the City acts solely as a trustee or custodian for the benefit of others, to whom the resources belong. The City is the trustee, or fiduciary, for its Employee and Police Pension plans and Other Post-Employment Benefits plan and acts in a custodial capacity for the Fourth of July Celebration Committee, and Dover Days Celebration Fund, none of which are component units of the City. All the City’s Fiduciary activities are reported in separate Statements of Fiduciary Net Position and Changes in Fiduciary Net Position. We exclude these activities from the City’s other financial statements because the City may not use these assets to finance its operations. The City is responsible for ensuring that the assets reported in these funds are used for their intended purposes. The financial statements also include notes (pages 61-121) that explain some of the information in the financial statements and provide more detailed data. The statements are followed by a section of required supplementary information (pages 125-135) that further explains and supports the information in the financial statements. Other supplementary information includes details on non-major funds and other information that can be found on pages 139 through 169. 64 30

2021 Annual Comprehensive Financial Report for the City of Dover, Delaware Financial Section – Part B – Management’s Discussion and Analysis Item 3. The following table summarizes the major features of the City’s financial statements, including the portion of the City government they cover and the types of information they contain. The remainder of this overview section of management’s discussion and analysis explains the structure and content of each of the statements: Major Features of City’s Government-wide and Fund Financial Statements Government-wide Statements Governmental Funds Proprietary Funds Fiduciary Funds Scope Entire City The activities of the Activities the City Instances in which government City that are not operates like private the City is the (except fiduciary proprietary or businesses, such as trustee or funds) fiduciary, such as electric, water and custodian for public safety and wastewater funds someone else’s public works resources Required financial • Statement of • Balance sheet • Statement of • Statement of statements net position • Statement of net position fiduciary net • Statement of revenues, • Statement of position activities expenditures, revenues, • Statement of and changes in expenses, and changes in fund balances changes in net fiduciary net position position • Statement of cash flows Accounting basis Accrual Modified accrual Accrual accounting Accrual and measurement accounting and accounting and and economic accounting and focus economic current financial resources focus economic resources focus resources focus resources focus Continued 65 31

2021 Annual Comprehensive Financial Report for the City of Dover, Delaware Financial Section – Part B – Management’s Discussion and Analysis Item 3. Continued Government-wide Statements Governmental Funds Proprietary Funds Fiduciary Funds Type of All assets deferred Generally, assets and All assets deferred All assets and asset/deferred outflows of deferred outflows of outflows of liabilities, both outflows of resources, resources expected to resources, liabilities, short-term and resources/liability/ liabilities, and be used up and and deferred inflows long-term deferred inflows of deferred inflows of liabilities and of resources both resources resources both deferred inflows of financial and capital, information financial and resources that come and short-term and capital, and short- due or available long-term term and long- during the year or term soon thereafter, no capital assets, or long- term liabilities included Type of All revenues and Revenues for which All revenues and All revenues and inflow/outflow expenses during cash is received expenses during the expenses during information the year, during or soon after year, regardless of the year, regardless regardless of when the end of the year; when cash is of when cash is cash is received or expenditures when received or paid received or paid paid goods or services have been received and payment is due during the year or soon thereafter Government-wide Statements The government-wide statements report information about the City as a whole using accounting methods similar to those used by private-sector companies. The statement of net position includes all the City of Dover’s assets, liabilities, and deferred inflows and outflows of resources with the difference reported as net position. Net position is one way to measure the City’s financial health or position. Over time, increases or decreases in the City’s net position is an indicator of whether its financial health is improving or deteriorating, respectively. To assess the overall health of the City, one needs to consider additional non-financial factors such as changes in the City’s property tax base and the condition of the City’s physical assets and infrastructure. The government-wide financial statements of the City are divided into two categories: • Governmental activities—Most of the City’s basic services are included here, such as general government, public safety, planning and code enforcement, public works, library and recreation, community and economic development, central services, and financial administration. Property taxes, business licenses, permits, sanitation fees, fines, utility transfers and state and federal grants finance most of these activities. • Business-type activities—The City charges fees to customers to help it cover the costs of certain services it provides. The City’s electric, water, and wastewater services are included here. 66 32

2021 Annual Comprehensive Financial Report for the City of Dover, Delaware Financial Section – Part B – Management’s Discussion and Analysis Item 3. Fund Financial Statements The fund financial statements provide more detailed information about the City’s most significant funds— not the City as a whole. Funds are accounting devices that the City uses to keep track of specific sources of funding and spending for specific purposes. Some funds are required by State law and by covenants. The City Council may also establish other funds to control and manage spending for other purposes. The City has three kinds of funds: • Governmental Funds - Most of the City’s basic services are included in governmental funds, which focus on (1) how cash and other financial assets that can readily be converted to cash flow in and out, and (2) the balances left at year end that are available for spending. Consequently, the governmental funds statements provide a detailed short-term view that helps one determine whether there are more or fewer financial resources that can be spent soon to finance the City’s programs. Because this information does not encompass the additional long-term focus of the government-wide statements, we provide additional information on a separate schedule, which explains the relationship (or differences) between them. - Governmental Fund Balance classifications are reported to the extent to which they are constrained as promulgated by Governmental Accounting Standards Board Statement No. 54. - The City’s General Fund is the only governmental fund considered to be a major fund under the requirements of Governmental Accounting Standards Board Statement No. 34. • Proprietary Funds – Services for which the City charges customers a fee, are generally reported in proprietary funds. Proprietary funds, like the government-wide statements, provide both long- and short-term financial information. - The City’s enterprise funds (one type of proprietary fund) are the same as its business-type activities, but provide more detail and additional information, such as cash flows. - The City’s Electric enterprise fund is considered a major fund under the requirements of GASB Statement No. 34. - The City’s Water & Wastewater funds are considered non-major funds under the requirements of GASB Statement No. 34. • Fiduciary Funds – The City is responsible for certain assets which are held for the benefit of parties outside the government. The City is responsible for ensuring that the assets reported in these funds are used for their intended purposes. All the City’s fiduciary activities are reported separately in a statement of fiduciary net position and a statement of changes in fiduciary net position. We exclude these activities from the City’s government-wide financial statements because the City cannot use these assets to finance its operations. 67 33

2021 Annual Comprehensive Financial Report for the City of Dover, Delaware Financial Section – Part B – Management’s Discussion and Analysis Item 3. Financial Analysis of the City as a Whole The City produces government-wide financial statements using the full accrual basis of accounting and economic resource management focus. As year-to-year financial information is accumulated on a consistent basis, changes in net assets may be observed and used to discuss the changing financial position of the City as a whole. The Net Position of the City of Dover as of June 30, 2021 and 2020 are presented below (in millions of dollars): Governmental Business-Type Activities Activities Total 2020 2021 2020 2021 2020 2021 Assets Non-Capital Assets $ 20.8 $ 25.0 $ 130.4 $ 141.1 $ 151.2 $ 166.1 Capital Assets 61.7 59.5 135.4 130.9 197.1 190.4 Total Assets 82.5 84.5 265.8 272.0 348.3 356.5 Deferred Outflow of Resources 5.8 5.4 1.4 0.5 7.2 5.9 Liabilities Current Liabilities 6.0 4.0 12.0 12.7 18.0 16.7 Non-Current Liabilities 40.0 19.3 55.9 46.4 95.9 65.7 Total Liabilities 46.0 23.3 67.9 59.1 113.9 82.4 Deferred Inflow of Resources 9.4 21.5 2.6 7.4 12.0 28.9 Net Position Net investment in Capital Assets 56.3 53.0 104.9 101.6 161.2 154.6 Restricted 0.3 0.4 71.0 74.1 71.3 74.5 Unrestricted (23.7) (8.3) 20.8 30.3 (2.9) 22.0 Total Net Position $ 32.9 $ 45.1 $ 196.7 $ 206.0 $ 229.6 $ 251.1 68 34

2021 Annual Comprehensive Financial Report for the City of Dover, Delaware Financial Section – Part B – Management’s Discussion and Analysis Item 3. The Changes in Net Position for the City of Dover as of June 30, 2020 and 2021 are presented as follows (in millions of dollars): Governmental Business-Type Activities Activities Total 2020 2021 2020 2021 2020 2021 Revenues: Program Revenues Charges for Services $ 9.7 $ 9.7 $ - $ - $ 9.7 $ 9.7 Water/Wastewater Charges for Services - - 14.9 16.2 14.9 16.2 Electric Charges for Services - - 81.5 79.8 81.5 79.8 Operating Grants and Contributions 3.6 3.4 - - 3.6 3.4 Capital Grants and Contributions 0.6 0.2 1.4 - 2.0 0.2 General Revenues Property Taxes 14.8 14.9 - - 14.8 14.9 Transfer Taxes 1.8 5.0 - - 1.8 5.0 Gain (Loss) on sale of capital assets - - - (0.5) - (0.5) Earnings on Investments-Other 0.6 - 4.2 0.4 4.8 0.4 Total Revenues 31.1 33.2 102.0 95.9 133.1 129.1 Expenses General Government 5.3 4.8 - - 5.3 4.8 Public Safety 19.7 15.1 - - 19.7 15.1 Public Works 5.1 8.5 - - 5.1 8.5 Library and Recreation 3.7 2.6 - - 3.7 2.6 Community and Economic Development 0.5 1.0 - - 0.5 1.0 Central Services 1.4 1.4 - - 1.4 1.4 Financial Administration 3.3 3.3 - - 3.3 3.3 Interest Charges 0.1 0.2 - - 0.1 0.2 Plus (less) Indirect Expense Allocation (4.9) (4.8) 4.9 4.8 - - Water/Wastewater - - 10.6 11.0 10.6 11.0 Electric - - 60.7 59.8 60.7 59.8 Total Expenses 34.2 32.1 76.2 75.6 110.4 107.7 Change in Net Position before Transfers (3.1) 1.2 25.8 20.3 22.7 21.4 Transfers 10.7 11.0 (10.8) (11.0) (0.1) - Change in Net Position 7.6 12.2 15.0 9.3 22.6 21.4 Net Position, beginning of year 25.3 32.9 181.7 196.7 207.0 229.6 Net Position, End of Year $ 32.9 $ 45.1 $ 196.7 $ 206.0 $ 229.6 $ 251.1 Governmental Activities The preceding table shows changes in net position for the year ended June 30, 2021 compared to the year ended June 30, 2020. Governmental net position increased by $12.2 million; this is an increase of $4.6 million from the prior years’ positive change in net position of $7.6 million. Total revenues of $33.2 million were more than the prior year by $2.1 million. The increase in revenues is primarily due to increases in: property tax receipts and transfer tax receipts, which exceeded the FY20 revenues by $3.3 million. The increases were partially offset by decreases in investment earnings, Operating Grants and Contributions, and Capital Grants and Contributions totaling $1.2 million. Charges for Services remained constant at $9.7 million. Total expenses of $32.1 million reflects a decrease from the prior year of $2.1 million across all but two 69 35

2021 Annual Comprehensive Financial Report for the City of Dover, Delaware Financial Section – Part B – Management’s Discussion and Analysis Item 3. functions of government – Public Works – which increased its FY21 spending by about $3.4 million and – Community and Economic Development – which increased its FY21 spending by about $0.5 million. The decrease in expenditures is driven by decreases in expenditures for general governmental, public safety and law enforcement, and library and recreation services. Central services and financial administration expenses remained constant. The chart that follows allocates revenues to program costs as applicable. It shows that some City functions are in part self-supporting either through customer charges or inter-fund receipts through the utilities (presented in millions of dollars): Expenses, Program Revenue & Interfund Receipts - Governmental Activities $16 $15.1 $14 $12 $10 $8.5 Millions $8 $6 $5.2 $4.8 $4.0 $4 $3.3 $2.7 $2.6 $2.4 $2 $1.4 $1.2 $0.9 $1.0 $0.5 $0.8 $0.5 $0 General Public Safety Public Works Library & Community & Central Services Financial Government Recreation Economic Administration Development Interfund Receipts Revenues Expenses 70 36

2021 Annual Comprehensive Financial Report for the City of Dover, Delaware Financial Section – Part B – Management’s Discussion and Analysis Item 3. The following chart shows the sources of funding for program costs for the last fiscal year. As can be seen, a substantial portion of funding for governmental operations is provided by property taxes, charges for services and transfers from the utilities. Revenues by Source - Governmental Activities Interfund Receipts 10% Charges for Services 20% Utility Transfer In 23% Operating Grants and Contributions 7% Capital Grants and Contributions 0% Property Taxes Transfer Taxes 30% 10% Business-Type Activities The business-type activities generated an increase in net position of $9.3 million, which was $5.7 million less than the previous year’s change in net position of $15.0 million. The decrease was primarily due to the combination of $6.1 million in total revenue decreases offset by expense reductions totaling $0.6 million. Transfers included $1.0 million transferred out of the water & wastewater funds and $10.0 million out of the electric fund to the general fund. The indirect expense allocation decreased by $0.1 million. The water utility realized a positive change in net position of approximately $1.9 million an increase of less than $0.1 million. Operating revenues increased by $0.5 million primarily due to an increase in rent revenues of $0.2 million, an increase in water fees of $0.2 million, and increases in State Grants and miscellaneous income of $0.1 million compared to the previous year. There was a system-wide decrease in consumption for water which in turn resulted in lower billable usage of approximately 175 million total gallons. Consumption decreases were primarily driven by customer usage. The billing rate in the water division was changed from the previous year by adding tiers to inside and outside city customers with the rates as follows: inside city customer tiers went from $3.00 per 1,000 gal to $2.49 for first 6,000 gal, $3.11 for 6001 – 100,000 gal, and tier 3 is $3.74 for over 100,000 gal; outside city customer tiers went from $4.50 per 1,000 gal to $3.74 for first 6,000 gal, $4.67 for 6,001 – 100,000 gal and tier 3 is $5.60 for over 100,000 gal. These changes resulted in an increase of approximately $0.2 million in Water fees revenue. Operating expenses in the water fund decreased by $0.5 million, which was driven mostly by a $0.3 million 71 37

2021 Annual Comprehensive Financial Report for the City of Dover, Delaware Financial Section – Part B – Management’s Discussion and Analysis Item 3. decrease in water treatment division expenses and a reduction of water division expenses by $0.3 million due to OPEB and Pension expense entries which were credits due to the substantial gains each had in investments within the fiscal year. General Administration expense also decreased because of a reduction in the Interfund Service fee. Offsetting increases aggregating $0.2 million were in the water engineering division, depreciation, and retiree healthcare costs. The increase in the engineering division was primarily due to an increase in contractual services for an update to the water master plan in the amount of $0.1 million. Finally, other contributors to the increase in net position was the reduction of nonoperating revenues and expenses of $1.1 million and transfers out of the fund of $0.15 million due to the funding of the ERP system was finished in the prior fiscal year. The wastewater utility realized a positive change in net position of approximately $0.9 million; a decrease from the prior year of $0.9 million. Operating revenues increased by just under $0.8 million primarily due to an increase in: wastewater fees of $0.6 million, sewer adjustment and ground water adjustment fees of $0.2 million offset by a decrease in Impact fee revenue of $0.2 million. There was a system-wide increase in consumption for wastewater which in turn resulted in higher billable usage of approximately 28 million total gallons. Consumption increases were primarily driven by customer usage. The billing rates in the wastewater division were all increased from the previous year except for the Kent County Sewer Treatment Fees rate – which is set by the County. The rates were increased as follows: Wastewater per 1,000-gal charge went from $2.65 to $2.84, Wastewater per 1,000-gal charge for outside city customers went from $3.98 to $4.25, Wastewater Customer charge went from $2.50 to $5.00, and Kent County Sewer Adjustment (I&I flows) increased from $1.50 to $1.61 per gal. Operating expenses in the wastewater fund increased from the prior year by $0.9 million. The driving factor to the increase in operating expense was a $1.0 million increase in Kent County wastewater treatment expense offset by decreases in the wastewater and engineering divisions totaling $0.2 million. Cost decreases were due to year end OPEB and Pension entries which reflected substantial investment gains. Finally, other contributors to the increase in net position was the reduction of transfers out of the fund by $0.15 million due to the funding of the ERP system was finished in the prior fiscal year. The electric utility realized a positive change in net position of just short of $6.6 million. Operating revenues decreased by $1.6 million attributed to decreases in electric revenue for all customer classes totaling $2.4 million except for residential revenue which increased by $1.1 million compared to the prior year. This is due to the pandemic where most people were home and businesses were closed. More kwh was generated for residential customers which has a lower rate and explains the increase of kwh with lower revenues. Additionally, there was a reduction in miscellaneous receipts of $0.3 million driven by lower billable customer installations and one-time miscellaneous receipts totaling $0.5 million offset by an increase in DEMA Grants $0.2 million due to storm Isaias in August of 2020. Operating Expenses in the Electric Fund decreased by about $3.2 million. A significant $2.7 million reduction in power supply and generation costs, coupled with decreases in all divisions as follows: $0.5 million in transmission and distribution, $0.2 million in engineering, $0.2 million in metering, and $0.1 million in systems operations division. The decreases were partially offset by an increase of $1.2 million in General Administration which was driven primarily by costs borne by the capital improvement fund that were not capitalized as an asset. As with the water and wastewater utility, all divisional expense reductions from prior year are realized due to year end OPEB and Pension expense entries recording investment gains realized within the year. Finally, nonoperating expenses were $5.9 million higher than the prior year primarily due to increased distribution to customers of $2.3 million and a reduction in fair value of investments of $2.9 million which reduced the significant increase in Operating income of $22.3 million to round out the positive change in net position of $6.6 million, which was $4.3 million less than the prior year’s positive change of $10.9 million. 72 38

2021 Annual Comprehensive Financial Report for the City of Dover, Delaware Financial Section – Part B – Management’s Discussion and Analysis Item 3. Operating Revenues, Expenses and Transfers - Business-Type Activities $90.0 $80 Operating $80.0 $68 Revenues & Millions $70.0 Transfers $60.0 $50.0 Operating Expenses & $40.0 Transfers $30.0 $20.0 $7 $10 $9 $10.0 $5 $- Electric Revenue Fund Water Fund Wastewater Fund Financial Analysis of the City’s Funds Governmental Funds As noted earlier, the City uses fund accounting to ensure and demonstrate compliance with finance- related legal requirements. Government funds focus on expendable resources and near-term inflows and outflows of those resources. As such, fund balance is generally a good indicator of net resources available for spending at the end of the fiscal year, subject to any stated restrictions on its use. The combined fund balance of the City’s governmental funds as of June 30, 2021, was over $19.5 million. This represented an increase of over $5.6 million during the year. Approximately 54% of the combined fund balances, $10.3 million, constitutes unassigned fund balance, which is available to meet the City’s current and future needs. The remainder of fund balance is non-spendable, restricted, committed or assigned to indicate that it is not available for operational spending because it is constrained by legally enforceable contracts, other governmental agreements and legislation, City Council resolution, management, or it is not convertible to cash within a reasonable period of time. Further detail of fund balances is presented in the Notes to the Basic Financial Statements in Note 7. The General Fund is the primary operating fund of the City, accounting for such activities as general government, public safety, public works, library, recreation, planning, community and economic development, central services, and financial administration. The General Fund balance as of June 30, 2021, was $19.1 million. Revenue decreased by $1.2 million, primarily due to decreases in grant revenue, investment income, police extra duty, library revenues – county reimbursement, and miscellaneous services; other less significant decreases were in library – general revenues, police fines, franchise fees, and property tax revenue which in aggregate fell short of the FY20 revenues by $1.8 million. The general fund revenue decreases were partially offset by $0.6 million of increases in license 73 39

2021 Annual Comprehensive Financial Report for the City of Dover, Delaware Financial Section – Part B – Management’s Discussion and Analysis Item 3. and permit revenue, sanitation fees, and court of chancery fees when comparing to the prior year. Total expenses of $38.4 million reflect a decrease from the prior year of $1.1 million, which was primarily driven by decreases in expense of: $0.6 million in recreational services, $0.5 million in public safety and law enforcement, $0.4 million in streets and sanitation, $0.2 million in library services and less significant decreases in engineering services, financial administration, interest and fiscal charges, and insurance totaling less than $0.1 million collectively. The expense decreases were offset by $0.3 million in increases to public works, $0.2 million in general government and $0.2 million in retiree health care, while minor differences in all other functional areas round out the expense variance. Proprietary Funds The City’s proprietary funds provide the same type of information found in the government- wide financial statements, but in more detail. As of June 30, 2021, the water fund has a net position of $34.6 million, of which $4.6 million is unrestricted. The fund’s net position increased $1.9 million as explained on page 37. As of June 30, 2021, the wastewater fund had a net position of $33.8 million, of which $1.1 million is unrestricted. The fund’s net position increased $0.9 million during the year as explained on page 38. As of June 30, 2021, the electric revenue fund has a net position of $137.6 million, of which $24.5 million is unrestricted. This fund experienced an increase in net position of $6.6 million during the year as explained on page 38. General Fund Budgetary Highlights During this fiscal year, the City Council amended the budget three times. The budget amendment ordinances were primarily for the following purposes: 1. To re-appropriate budget balances for ongoing capital projects. 2. To amend the grant budgets and reserve accounts for the actual results from the prior fiscal year and to adjust program revenues and expenses based on changes in program revenues and expenses based on actual amounts. 3. To amend revenue and expense accounts based on actual experience during fiscal year 2021. The General Fund financials in the Governmental Funds Balance Sheet (page 49) and Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds (page 51) include both the General Fund operating activities and the Governmental Capital Project Fund activities. The General Fund – Schedule of Revenues, Expenditures and Changes in Fund Balances – Budget & Actual is included in Part D – Required Supplementary Information (pages 125-126). The Combining Schedules – Combining General Fund Balance Sheet and Combining Schedule of Revenues, Expenditures and Changes in Fund Balances of the General Fund are included in Part E – Supplementary Information (pages 140-141). The Governmental Capital Projects Fund – Schedule of Revenues, Expenditures and Changes in Fund 74 40

2021 Annual Comprehensive Financial Report for the City of Dover, Delaware Financial Section – Part B – Management’s Discussion and Analysis Item 3. Balances-Budget and Actual is included in Part E – Supplementary Information (page 142). General Fund budgeted expenditures were revised to reflect an aggregate increase of $0.1 million. The expenditure decreases were primarily to Stormwater, Streets, and City Manager totaling $0.2 million with minor decreases in Tax Assessor, Library, Fleet Maintenance, and Planning. Operating divisions with budgeted increases were Life Safety, Sanitation, Engineering, Procurement and Inventory, Human Resources, Public Works – Administration, Public Inspections, and City Clerk totaling $0.2 million and offsets the decreases. Additionally, there were three non-divisional budgeted expenditures that increased and are as follows: insurance, Miscellaneous grant expense and a transfer to the library, no other expenditure line-item budgets were changed. Actual revenues and other financing sources received were above the final budgeted amounts in the General Fund by more than $2.4 million for the current fiscal year. The budgeted revenues were revised to reflect a small increase of $0.1 million for a transfer in from other reserves and a minor increase in miscellaneous grants. There were no other revenue line items revised. Capital Asset and Debt Administration At the end of the current fiscal year, the City’s governmental and proprietary funds had invested $59.5 million and $130.9 million, respectively, in a variety of capital assets and infrastructure, as reflected in the following schedule, which exhibits a net decrease of $2.2 million for governmental activities and a net decrease of $4.5 million for the business-type activities. Most of the decrease in assets reported within both the Governmental and Business-Type Activities is attributable to a thorough internal audit and subsequent disposal of assets that were either replaced or disposed of in prior years, but were never removed from the asset records, or did not qualify as a Capital asset based on our current definitions. For the Governmental Activities, the decrease in assets reported was in land ($0.1 million), equipment ($0.2 million), buildings ($0.1 million), land improvements ($0.07 million), and in furniture & fixtures ($0.06 million). The value of construction projects that remained open as of June 30, 2021 increased by $0.9 million, and $0.2 million of vehicles were sold at auction. The decrease in Business- Type Activities is due primarily to the internal audit mentioned above, with Electric assets of $2.6 million found to be obsolete. Additionally, this year included the accelerated depreciation for the McKee Run power plant decommissioning. The water fund added $8.3 million, the wastewater fund added $1.3 million, and the Electric fund added $2.0 million in completed construction projects. Additional detailed data for all capital assets of the City is presented in the Notes to the Basic Financial Statements in Note 4. The following schedule is presented in millions of dollars. 75 41

2021 Annual Comprehensive Financial Report for the City of Dover, Delaware Financial Section – Part B – Management’s Discussion and Analysis Item 3. Governmental Business-Type Activities Activities Total 2020 2021 2020 2021 2020 2021 Depreciable Assets, Net Buildings $ 21.9 $ 21.5 $ - $ - $ 21.9 $ 21.5 Equipment & Vehicles 4.7 4.3 5.9 5.8 10.6 10.1 General Infrastructure 28.9 26.8 - - 28.9 26.8 Utility, Plant, Buildings, and - - Infrastructure - - 114.4 116.9 114.4 116.9 Other 0.3 0.2 1.2 1.0 1.5 1.2 Non-depreciable Assets Land 4.7 4.6 1.6 1.6 6.3 6.2 Construction in Progress 1.2 2.1 12.3 5.6 13.5 7.7 $ 61.7 $ 59.5 $ 135.4 $ 130.9 $ 197.1 $ 190.4 The chart below shows that the City’s Total Net OPEB Liability decreased by $14.0 million, with the majority of $11.1 million attributable to the Governmental Activities and the balance attributable to the Business-Type Activities $2.9 million. The City’s Total Net Pension Liability decrease of $15.9 million was mostly attributable to the Governmental Activities $10.7 million and the balance attributable to the Business-Type Activities $5.2 million. Additional detailed information regarding the City’s Other Post- Employment Benefits and Retirement Plans is presented in the Notes to the Basic Financial Statements in Notes 15 and 17, respectively. The City Charter limits the amount of general obligation debt the City can issue in any one year to 25% of the taxable assessed value of real property within the City. The aggregate of amounts borrowed for which the full faith and credit of the City is pledged cannot exceed 5.0% of assessed value of real property within the City boundaries. The City has used 3.69% of its debt limit. The City of Dover’s non-current liabilities as of June 30, 2020 and 2021 are presented below (in millions of dollars): Governmental Business-Type Activities Activities Total 2020 2021 2020 2021 2020 2021 Non-current liabilities Police Officer Separation Agreement $ 0.1 $ - $ - $ - $ 0.1 $ - Liability for Compensated Absences 2.5 2.7 0.8 0.7 3.3 3.4 Bonds (Net of Discount/Issuance Cost) 5.4 6.6 29.4 28.3 34.8 34.9 Bond Premium - - 1.1 1.0 1.1 1.0 Net OPEB Liability 17.2 6.1 3.4 0.5 20.6 6.6 Net Pension Liability 16.5 5.8 11.4 6.2 27.9 12.0 Asset Retirement Obligation - - 11.9 11.9 11.9 11.9 $ 41.7 $ 21.2 $ 58.0 $ 48.6 $ 99.7 $ 69.8 Additional detailed data for all debt of the City is presented in the Notes to the Basic Financial Statements in Note 5. 76 42

2021 Annual Comprehensive Financial Report for the City of Dover, Delaware Financial Section – Part B – Management’s Discussion and Analysis Item 3. Economic Factors and Next Year’s Budgets and Rates The City developed the fiscal year 2021 budget in accordance with the City’s financial policies ensuring all budgets are balanced and reserve requirements were adhered to. The following changes over fiscal year 2021 were incorporated into the fiscal year 2022 budget. • The FY22 General Fund budget includes a property tax increase of $ .055 per $100 of assessed value on the taxable properties to support the City’s taxpayers and citizens beyond FY22. This increase assisted the City in: o Maintaining the increases in staff for critical service levels for public works, add five new police officers, allow for the additional costs to maintain/support the Fire Department with additional Fire Relief Dispatchers in order to cover services provided. o The General Governmental Capital Project Fund was able to be restored to prior levels this to continue to address aging facilities, park improvements, drainage and stormwater basin management and upgrades to many of the City facilities. This helps the City maintain a reasonable replacement schedule so as not to compile these costs into future years. o City equipment is also an important aspect of this budget cycle as many significant pieces of equipment were at end of life to mention just a few to include: (a) ’12 Street Sweeper; (b) ’06 Jet Vacuum Truck; (c) Two (2) Trash Trucks (d) ‘95 Case Backhoe; (e) approximately nine (9) police vehicles and (f) several pieces of fire apparatus. • The Water and Wastewater Fund saw another year of rate increases, this the second of a four- year plan to adjust rates. The additional revenues from each of the respective and future years will assist with infrastructure improvements and help to establish a prudent reserve over time. • This budget keeps the Electric Fund PCA credit for electric rates at the FY 21 Level ($0.007/kwh returned to all customers). • This budget incorporates the addition of a few select positions the majority of which fall under the General Fund to include: (a) two positions (2) within Customer Service; (b) one (1) in Facilities; (c) one in Information Technology; (d) five positions in the Police department; and (e) three (3) electric groundworkers. • The City continues to discuss the establishment of a Stormwater Utility. This fund has been discussed for several years and will be established to provide a designated source of revenue to fund the City’s stormwater management costs and capital stormwater system infrastructure costs, of which are currently be funded within the General Fund. • In March of 2020, the World Health Organization declared the spread of COVID-19 a worldwide pandemic. The COVID-19 pandemic is having significant effects on global markets, supply chains, businesses, and communities. On March 11, 2021 The American Rescue Plan Act was signed into law providing funding for state and local governments to respond to the public health emergency and its negative economic impacts. The City of Dover anticipates receiving federal funding from this program. • Decommissioning of McKee Run Power Plant #3 during continues. The City continues to closely monitor the local economy and its impact on growth and revenues. Revenue enhancements, rate increases, and potential cost reductions will continue to be reviewed in order to maintain the City’s financial policies. 77 43

2021 Annual Comprehensive Financial Report for the City of Dover, Delaware Financial Section – Part B – Management’s Discussion and Analysis Item 3. Contacting the City’s Financial Management This financial report is designed to provide our citizens, taxpayers, customers, and investors and creditors with a general overview of the City’s finances and to demonstrate the City’s accountability for the money it receives. If you have questions about this report or need additional financial information, contact Ms. Lori Peddicord, Controller/Treasurer at 302-736-4452 (TTY/TDD Operator 1-800-855-1155). 78 44

2021 Annual Comprehensive Financial Report for the City of Dover, Delaware Financial Section Item 3. PART C BASIC FINANCIAL STATEMENTS 79 45

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2021 Annual Comprehensive Financial Report for the City of Dover, Delaware Financial Section – Part C – Basic Financial Statements Item 3. City of Dover, Delaware Statement of Net Position June 30, 2021 Governmental Business-Type Activities Activities Total Assets: Cash and Cash Equivalents $ 12,591,547 $ 21,051,380 $ 33,642,927 Investments 10,244,351 37,924,768 48,169,119 Receivables, Net 554,628 5,255,980 5,810,608 Internal Balances 688,871 (688,871) - Due from Other Governments 150,731 - 150,731 Inventory 80,432 3,014,819 3,095,251 Prepaid Items 15,112 442,164 457,276 Restricted Cash and Cash Equivalents 685,153 17,647,632 18,332,785 Restricted Investments 19,096 56,442,629 56,461,725 Capital Assets, Not Being Depreciated 6,752,360 7,173,778 13,926,138 Capital Assets, Net of Depreciation 52,783,219 123,677,730 176,460,949 Total Assets 84,565,500 271,942,009 356,507,509 Deferred Outflows of Resources: Pension related Deferred Outflows 3,141,303 - 3,141,303 OPEB related Deferred Outflows 2,238,792 534,157 2,772,949 Total Deferred Outflows of Resources 5,380,095 534,157 5,914,252 Liabilities: Accounts Payable and Accrued Liabilities 1,804,576 6,869,406 8,673,982 Unearned Revenue 57,985 602,391 660,376 Customer Deposits - 2,581,426 2,581,426 Other 262,212 378,351 640,563 Liabilities Due within One Year 1,881,643 2,240,268 4,121,911 Non-Current Liabilities Due in more than One Year 7,433,403 27,755,041 35,188,444 Due in more than One Year - OPEB 6,068,847 475,855 6,544,702 Due in more than One Year - Pension 5,841,779 6,238,964 12,080,743 Due in more than One Year - ARO - 11,915,849 11,915,849 Total Liabilities 23,350,445 59,057,551 82,407,996 Deferred Inflows of Resources: Pension related deferred inflows 7,466,025 3,427,053 10,893,078 OPEB related Deferred Inflows 14,071,292 4,007,753 18,079,045 Total Deferred Inflows of Resources 21,537,317 7,434,806 28,972,123 Net Position: Net Investment in Capital Assets 52,937,055 101,595,410 154,532,465 Restricted for: Capital Projects 113,835 74,090,261 74,204,096 Public Safety Grants 186,966 - 186,966 Verizon Grant 51,394 - 51,394 Library Grant 78,011 - 78,011 Community Development Grants 1,141 - 1,141 Unrestricted (8,310,569) 30,298,138 21,987,569 Total Net Position $ 45,057,833 $ 205,983,809 $ 251,041,642 The notes to financial statements are an integral part of this statement. 81 47

2021 Annual Comprehensive Financial Report for the City of Dover, Delaware Financial Section – Part C – Basic Financial Statements Item 3. City of Dover, Delaware Statement of Activities For the Year Ended June 30, 2021 Net (Expense) Revenue and Program Revenues Changes in Net Position Indirect Operating Capital Grants Expenses Charges for Grants and and Governmental Business Type Expenses Allocation Services Contributions Contributions Activities Activities Total Functions/Programs Governmental Activities General Government $ 4,828,924 $ (1,208,599) $ 2,607,533 $ 80,677 $ - $ (932,115) $ - $ (932,115) Public Safety 15,074,030 - 3,822,417 1,412,299 - (9,839,314) - (9,839,314) Public Works 8,484,007 (502,892) 3,125,135 797,580 92,867 (3,965,533) - (3,965,533) Library and Recreation 2,613,161 - 146,402 291,942 98,500 (2,076,317) - (2,076,317) Community and Economic Development 1,023,086 - - 871,331 - (151,755) - (151,755) Central Services 1,415,802 (774,021) - - - (641,781) - (641,781) Financial Administration 3,266,757 (2,354,977) - - - (911,780) - (911,780) Interest Charges 180,781 - - - - (180,781) - (180,781) Total Governmental Activities 36,886,548 (4,840,489) 9,701,487 3,453,829 191,367 (18,699,376) - (18,699,376) Business Type Activities Water 3,473,858 880,272 6,693,676 - - - 2,339,546 2,339,546 Wastewater 7,509,848 673,670 9,507,205 - - - 1,323,687 - Electric 59,822,771 3,286,547 79,820,816 - - - 16,711,498 16,711,498 Total Business Type Activities 70,806,477 4,840,489 96,021,697 - - Total Primary Government $ 107,693,025 $ - $ 105,723,184 $ 3,453,829 $ 191,367 (18,699,376) 20,374,731 1,675,355 General Revenues Taxes Property Taxes 14,892,966 - 14,892,966 Transfer Taxes 4,962,557 - 4,962,557 Earnings on Investments 15,803 399,058 414,861 Loss on Sale of Assets - (480,219) (480,219) Total General Revenues 19,871,326 (81,161) 19,790,165 Transfers 11,000,000 (11,000,000) - Total General Revenues and Transfers 30,871,326 (11,081,161) 19,790,165 Changes in Net Position 12,171,950 9,293,570 21,465,520 Net Position Beginning 32,885,883 196,690,239 229,576,122 Net Position Ending $ 45,057,833 $ 205,983,809 $ 251,041,642 The notes to financial statements are an integral part of this statement. 48 82

2021 Annual Comprehensive Financial Report for the City of Dover, Delaware Financial Section – Part C – Basic Financial Statements Item 3. City of Dover, Delaware Governmental Funds Balance Sheet June 30, 2021 Total Total General Nonmajor Governmental Fund Funds Funds Assets: Cash and Cash Equivalents $ 10,814,727 $ - $ 10,814,727 Restricted Cash and Cash Equivalents - 685,153 685,153 Investments 8,674,778 - 8,674,778 Restricted Investments 19,096 - 19,096 Receivables, Net Accounts 436,170 11,027 447,197 Taxes 102,431 - 102,431 Due from Other Funds 1,081,342 187,019 1,268,361 Temporary Advances 220,000 - 220,000 Due from Other Governments - 150,731 150,731 Prepaid Items 15,112 - 15,112 Inventory 80,432 - 80,432 Total Assets $ 21,444,088 $ 1,033,930 $ 22,478,018 Liabilities: Accounts Payable $ 1,456,192 $ 38,454 $ 1,494,646 Unearned Revenue 52,425 5,560 57,985 Due to Other Funds 187,025 392,465 579,490 Temporary Advances - 220,000 220,000 Other 262,212 - 262,212 Total Liabilities 1,957,854 656,479 2,614,333 Deferred Inflows of Resources: Unavailable Revenue 346,068 - 346,068 Total Deferred Inflows of Resources 346,068 - 346,068 Fund Balances: Non-Spendable 117,139 - 117,139 Restricted 53,896 377,451 431,347 Committed 2,111,592 - 2,111,592 Assigned 6,540,786 - 6,540,786 Unassigned 10,316,753 - 10,316,753 Total Fund Balances 19,140,166 377,451 19,517,617 Total Liabilities, Deferred Inflows and Fund Balances $ 21,444,088 $ 1,033,930 $ 22,478,018 The notes to financial statements are an integral part of this statement. 83 49

2021 Annual Comprehensive Financial Report for the City of Dover, Delaware Financial Section – Part C – Basic Financial Statements Item 3. City of Dover, Delaware Reconciliation of the Balance Sheet of Governmental Funds To the Statement of Net Position June 30, 2021 Amounts reported for governmental activities in the statement of net position (page 47) are different because: Total fund balances for governmental funds (Page 49) 19,517,617 Capital assets used in governmental activities are not financial resources and, therefore, are not reported in the funds. 59,535,579 Other assets are not available to pay for current period expenditures and, therefore, are reported as unavailable revenue in the funds. Deferred inflows of resources 346,068 346,068 The Net Pension Liability & OPEB Liability is not due and payable in the current period; therefore, the liability and related deferred inflows/outflows are not reported in governmental funds: Deferred Outflows - Pension 3,141,303 Deferred Inflows - Pension (7,466,025) Deferred Outflows - OPEB 2,238,792 Deferred Inflows - OPEB (14,071,292) (16,157,222) An internal service fund (page 53) is used by the City to charge the cost of the workers' compensation fund. The assets and liabilities of the internal service fund are included in governmental activities in the statement of net position. 3,042,296 Accrual basis of bond interest paid (833) Long-term liabilities applicable to the City's governmental activities are not due and payable in the current period and, accordingly, are not reported as fund liabilities. Interest on long-term debt is not accrued in governmental funds, but rather is recognized as an expenditure when due. All liabilities both current and long-term are reported in the statement of net position. Compensated absences represent amounts accrued for sick leave for those employees who are vested and accrued vacation for all employees. The Net Pension Liability and OPEB Liability are not a use of current financial resources, and therefore, are not reported in the governmental funds. Current- General Obligation Bonds (487,315) Compensated Absences (1,356,828) Police Officer separation agreement (37,500) (1,881,643) Long-Term- General Obligation Bonds (6,111,209) Compensated Absences (1,322,194) Net Pension Liability (5,841,779) Net OPEB Liability (6,068,847) (19,344,029) (21,225,672) Total net position of governmental activities (Page 47) $ 45,057,833 The notes to financial statements are an integral part of this statement. 84 50

2021 Annual Comprehensive Financial Report for the City of Dover, Delaware Financial Section – Part C – Basic Financial Statements Item 3. City of Dover, Delaware Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds For the Year Ended June 30, 2021 Total Total General Nonmajor Governmental Fund Funds Funds Revenues Fines $ 442,699 $ 267,109 $ 709,808 Library Revenue - General 37,015 - 37,015 Library Revenue County Reimbursement 41,981 - 41,981 Licenses and Permits 2,906,024 - 2,906,024 Sanitation Fees and Rebates 3,125,135 - 3,125,135 Recreation - 20,915 20,915 Miscellaneous Services 871,521 - 871,521 Property Taxes 14,740,033 - 14,740,033 Transfer Taxes - 4,962,557 4,962,557 Grants Received 1,071,294 2,573,902 3,645,196 Court of Chancery Fees 1,834,620 - 1,834,620 Investment Income 6,156 1,638 7,794 Total Revenues 25,076,478 7,826,121 32,902,599 Expenditures Current: General Government 1,937,056 - 1,937,056 Library Services 1,608,823 248,829 1,857,652 Public Safety and Law Enforcement 21,568,236 286,709 21,854,945 Public Works 2,886,452 92,377 2,978,829 Recreational Services 1,126,313 - 1,126,313 Streets and Sanitation Services 3,616,943 - 3,616,943 Engineering Services 204,843 - 204,843 Financial Administration 791,540 - 791,540 Garage and Stores 771,974 - 771,974 Insurance 343,044 - 343,044 Retiree Health Care 2,045,400 - 2,045,400 Community and Economic Development 150,000 873,086 1,023,086 Street Lights 815,961 - 815,961 Debt Service: Principal Retirement 335,760 - 335,760 Interest and Fiscal Charges 156,154 - 156,154 Total Expenditures 38,358,499 1,501,001 39,859,500 Excess (deficiency) of Revenues over Expenditures (13,282,021) 6,325,120 (6,956,901) Other Financing Sources (Uses) Bonds Issued 1,563,000 - 1,563,000 Transfers In 17,256,573 1,067 17,257,640 Transfers Out (1,067) (6,256,573) (6,257,640) Total other Financing Sources (Uses) 18,818,506 (6,255,506) 12,563,000 Net Change in Fund Balances 5,536,485 69,614 5,606,099 Fund Balances at Beginning of Year 13,603,681 307,837 13,911,518 Fund Balances at End of Year $ 19,140,166 $ 377,451 $ 19,517,617 The notes to financial statements are an integral part of this statement. 85 51

2021 Annual Comprehensive Financial Report for the City of Dover, Delaware Financial Section – Part C – Basic Financial Statements Item 3. City of Dover, Delaware Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities For the Year Ended June 30, 2021 Amounts reported for governmental activities in the statement of activities (page 48) are different because: Net change in fund balances--total governmental funds (Page 51) $ 5,606,099 Governmental fund reports capital outlays as expenditures. However, in the statement of activities the cost of these assets is allocated over their estimated useful lives and reported as depreciation expense. This is the amount by which capital outlays exceeded depreciation in the current period. Capitalization of net capital asset expenditures including CIP $ 1,959,010 Loss on assets disposed of during the year (189,094) Current year depreciation (3,871,919) (2,102,003) Governmental funds report the repayment of principal of general long-term debt as an expenditure but the repayment reduces the liability in the statement of net position. 335,760 Revenues that are not available to pay for current period expenditures are not reported as revenues in the funds. 307,401 The issuance of long-term debt (e.g., bonds, leases) provides current financial resources to governmental funds, while the repayment of the principal of long-term debt consumes the current financial resources of governmental funds. Neither transaction, however, has any effect on net assets. Also, governmental funds report the effect of issuance costs, premiums, discounts, and similar items when debt is first issued, whereas these amounts are deferred and amortized in the statement of activities. This amount is the net effect of these differences in the treatment of long-term debt and related items. 2021 General Obligation Bonds (1,563,000) Governmental funds do not report GAAP related pension entries that record the Net Pension Liability. The following is the current year change in Net Pension Liability for the Governmental funds: 10,699,493 Changes in Deferred Inflows and Deferred Outflows related to pension entries reported in the Statement of Activities. (8,199,289) Decreases in operating expenses due to the decrease in OPEB expense for the amortization of deferred outflows and inflows of resources related to the net OPEB liability. (4,402,174) Under the modified accrual basis of accounting used in the governmental funds, expenditures are not recognized for the transactions that are not normally paid with expendable available financial resources. In the statement of activities, however, which is presented on the accrual basis, expenses and liabilities are reported regardless of when financial resources are available. In addition, assets are not recognized in governmental funds unless they represent current financial resources but are recognized in the statement of activities as they accrue. The following differences, therefore, occur between the statement of activities and the governmental funds. Increase in compensated absences $ (156,886) Bond interest accrual (24,624) Decrease in Net OPEB Liability 11,113,763 10,932,253 An internal service fund is used by the City to charge the costs of workers' compensation insurance to individual funds. The change in net position of the internal service fund is transferred to the governmental funds and amounts attributable to internal charges are then allocated to functional expenditures. Net revenue is allocated back to respective functions and business type activities, as appropriate. 557,410 Change in net position of governmental activities (Page 48) $ 12,171,950 The notes to financial statements are an integral part of this statement. 86 52

2021 Annual Comprehensive Financial Report for the City of Dover, Delaware Financial Section – Part C – Basic Financial Statements Item 3. City of Dover, Delaware Statement of Net Position - Proprietary Funds Proprietary Funds June 30, 2021 Governmental Business-type Activities Activities Electric Non-Major Total Revenue Enterprise Enterprise Internal Fund Funds Funds Service Fund Assets Current Assets: Cash and Cash Equivalents $ 17,847,702 $ 3,203,678 $ 21,051,380 $ 1,776,820 Investments 29,371,080 8,553,688 37,924,768 1,569,573 Receivables, Net 4,180,899 1,075,081 5,255,980 5,000 Due from Other Funds - 6 6 - Inventory 2,959,540 55,279 3,014,819 - Prepaid Items 442,164 - 442,164 - Total Current Assets 54,801,385 12,887,732 67,689,117 3,351,393 Non-Current Assets: Restricted Assets Cash 16,600,618 1,047,014 17,647,632 - Investments 48,650,805 7,791,824 56,442,629 - Capital Assets, Not Being Depreciated 4,962,617 2,211,161 7,173,778 - Capital Assets, Net of Depreciation 58,121,184 65,556,546 123,677,730 - Total Non-Current Assets 128,335,224 76,606,545 204,941,769 - Total Assets 183,136,609 89,494,277 272,630,886 3,351,393 Deferred Outflows of Resources: OPEB Related Deferred Outflows 324,663 209,494 534,157 - 324,663 209,494 534,157 - Liabilities Current Liabilities: Accounts Payable and Accrued Expenses 5,000,810 1,868,596 6,869,406 309,097 Due to Other Funds - Charges 472,359 216,518 688,877 - Unearned Revenue 602,391 - 602,391 - Accrued Interest Payable 286,975 91,376 378,351 - Customer Deposits 2,581,426 - 2,581,426 - Revenue Bonds Payable 820,000 1,063,803 1,883,803 - Liability for Compensated Absences 232,449 124,016 356,465 - Total Current Liabilities 9,996,410 3,364,309 13,360,719 309,097 Non-Current Liabilities: Net OPEB Liability 388,513 87,342 475,855 - Net Pension Liability 4,340,902 1,898,062 6,238,964 - Asset Retirement Obligation 11,915,849 - 11,915,849 - Revenue Bonds Payable 14,434,787 12,937,509 27,372,296 - Liability for Compensated Absences 217,105 165,640 382,745 - Total Non-Current Liabilities 31,297,156 15,088,553 46,385,709 - Total Liabilities 41,293,566 18,452,862 59,746,428 309,097 Deferred Inflows of Resources: Pension Related Deferred Inflows 2,132,638 1,294,415 3,427,053 - OPEB Related Deferred Inflows 2,423,826 1,583,927 4,007,753 - Total Deferred Inflows of Resources 4,556,464 2,878,342 7,434,806 - Net Position Net Investment in Capital Assets 47,829,014 53,766,396 101,595,410 - Restricted for Capital Construction 65,251,423 8,838,838 74,090,261 - Unrestricted 24,530,805 5,767,333 30,298,138 3,042,296 Total Net Position $ 137,611,242 $ 68,372,567 $ 205,983,809 $ 3,042,296 The notes to financial statements are an integral part of this statement. 87 53

2021 Annual Comprehensive Financial Report for the City of Dover, Delaware Financial Section – Part C – Basic Financial Statements Item 3. City of Dover, Delaware Statement of Revenues, Expenses and Changes in Fund Net Position - Proprietary Funds For the Year Ended June 30, 2021 Governmental Business-type Activities Activities Electric Non-Major Total Revenue Enterprise Enterprise Internal Fund Funds Funds Service Fund Operating Revenues Charges for Services $ 78,624,821 $ 15,080,090 $ 93,704,911 $ - Miscellaneous Services/Income 1,195,995 1,120,481 2,316,476 919,173 Total Operating Revenues 79,820,816 16,200,571 96,021,387 919,173 Operating Expenses Water - 396,698 396,698 - Wastewater - 867,982 867,982 - Water Treatment Plant - 1,356,366 1,356,366 - Water/Wastewater Engineering - 434,856 434,856 - Kent County Wastewater Treatment - 4,773,265 4,773,265 - General Administrative 5,844,102 1,650,412 7,494,514 175,015 Power Supply 38,348,596 - 38,348,596 - Transmission/Distribution 2,673,257 - 2,673,257 - Engineering 862,571 - 862,571 - Metering 287,273 - 287,273 - Systems Operations 469,818 - 469,818 - Utility Tax 1,137,022 - 1,137,022 - Depreciation 7,189,643 2,443,819 9,633,462 - Contractual Services - - - 15,961 Taxes - - - 33,511 Retirees Health Care 789,600 258,400 1,048,000 - Self Insurance-Workers' Compensation - - - 145,285 Total Operating Expenses 57,601,882 12,181,798 69,783,680 369,772 Operating Income/Loss 22,218,934 4,018,773 26,237,707 549,401 Non-Operating Revenues (Expenses) Interest Earned: Operating Funds 293,945 137,268 431,213 - Reserve Funds 1,142,149 174,755 1,316,904 30,408 Net Increase in Fair Value of Investments (1,113,314) (235,745) (1,349,059) (22,399) Interest and Fiscal Charges (499,894) (355,850) (855,744) - Distribution of Earnings - PCA Credit (5,007,542) - (5,007,542) - Gain (Loss) on Sale of Assets (480,219) 310 (479,909) - Total Non-Operating Revenue (expenses) (5,664,875) (279,262) (5,944,137) 8,009 Income before Contributions and Transfers 16,554,059 3,739,511 20,293,570 557,410 Transfers Out (10,000,000) (1,000,000) (11,000,000) - Total transfers (10,000,000) (1,000,000) (11,000,000) - Change in Net Position 6,554,059 2,739,511 9,293,570 557,410 Total Net Position--Beginning 131,057,183 65,633,056 196,690,239 2,484,886 Total Net Position--Ending $ 137,611,242 $ 68,372,567 $ 205,983,809 $ 3,042,296 The notes to financial statements are an integral part of this statement. 88 54

2021 Annual Comprehensive Financial Report for the City of Dover, Delaware Financial Section – Part C – Basic Financial Statements Item 3. City of Dover, Delaware Statement of Cash Flows - Proprietary Funds For the Year Ended June 30, 2021 Governmental Business-type Activities Activities Electric Non-Major Total Revenue Enterprise Enterprise Internal Fund Funds Funds Service Fund Cash Flows from Operating Activities Receipts from Customers $ 80,082,378 $ 15,927,924 $ 96,010,302 $ - Payments to Suppliers (including Purchased Power) (41,862,791) (6,351,241) (48,214,032) (196,614) Payments to Employees (5,021,277) (2,390,977) (7,412,254) - Payments of Personnel Related Costs (675,800) (255,131) (930,931) 966,119 Internal Activity-Payments from (to) Other Funds (634,135) (359,715) (993,850) - Other Receipts (Payments) including Claims Paid (2,483,045) (1,264,171) (3,747,216) (325,470) Net Cash Provided by (used for) Operating Activities 29,405,330 5,306,689 34,712,019 444,035 Cash Flows from Noncapital Financing Activities Transfers Out (10,000,000) (1,000,000) (11,000,000) - Distribution to Customers - PCA Credit (5,007,542) - (5,007,542) - Net Cash Used for Noncapital Financing Activities (15,007,542) (1,000,000) (16,007,542) - Cash Flows from Capital and Related Financing Activities Acquisition and Construction of Capital Assets (2,058,758) (3,505,807) (5,564,565) - Proceeds of issuance of debt - 674,936 674,936 - Bond Issuance Costs - (3,334) (3,334) - Principal Paid on Revenue Bond Maturities (785,000) (1,009,753) (1,794,753) - Interest Paid on Capital Debt (594,810) (368,624) (963,434) - Net Cash Used for Capital and Related Financing Activities (3,438,568) (4,212,582) (7,651,150) - Cash Flows from Investing Activities Interest on Investments 293,945 137,268 431,213 - Redemption of Investment Securities - 838,923 838,923 - Purchase of Investment Securities (1,447,102) (590,765) (2,037,867) 1,001 Interest on Restricted Cash 1,142,149 174,754 1,316,903 - Net Cash Provided by (used for) Investing Activities (11,008) 560,180 549,172 1,001 Net Increase/Decrease in Cash and Cash Equivalents 10,948,212 654,287 11,602,499 445,036 Cash and cash equivalents July 1 (incl. $497,618 for Non-Major Enterprise Funds and $13,032,907 for Electric fund reported in restricted accounts) 23,500,108 3,596,405 27,096,513 1,331,784 Cash and cash equivalents June 30 (incl. $1,047,014 for Non-Major Enterprise Funds and $16,600,618 for Electric fund reported in restricted accounts) $ 34,448,320 $ 4,250,692 $ 38,699,012 $ 1,776,820 Reconciliation of Operating Income to Net Cash Provided by (Used for) Operating Activities: Operating Income $ 22,218,934 $ 4,018,773 $ 26,237,707 $ 549,401 Adjustments to Reconcile Operating Income to Net Cash provided by (Used for) Operating Activities: Depreciation Expense 7,189,643 2,443,819 9,633,462 - Effect of Changes in Operating Assets and Liabilities: Receivables 71,163 (272,790) (201,627) - Due from other funds 9,002 143 9,145 46,946 Due from other funds - Advances - 400,000 400,000 - Inventory 1,332,825 16,823 1,349,648 - Prepaid items 36,055 294 36,349 - Deferred outflow of resources Pension 558,098 332,263 890,361 - Deferred outflow of resources OPEB (167,038) (118,718) (285,756) - Deferred outflow of resources ARO 243,180 - 243,180 - Accounts payable and accrued expenses 82,557 294,451 377,008 (152,312) Unearned revenue 143,054 - 143,054 - Due to other funds (234,935) (146,529) (381,464) - Due to other funds - Advances - (400,000) (400,000) - Customer Deposits 38,343 - 38,343 - Liability for Compensated Absences (106,276) 54,851 (51,425) - Net OPEB Liability (1,748,866) (1,241,131) (2,989,997) - Net pension liability (3,197,735) (1,951,830) (5,149,565) - Deferred inflow of resources Pension 2,077,560 1,265,939 3,343,499 - Deferred inflow of resources OPEB 859,766 610,331 1,470,097 - Net Cash Provided by Operating Activities $ 29,405,330 $ 5,306,689 $ 34,712,019 $ 444,035 Non-Cash Investing, Capital and Financing Activities: Change in Fair Value of Investments $ (1,113,314) $ (235,745) $ (1,349,059) $ (22,399) The notes to financial statements are an integral part of this statement. 89 55

2021 Annual Comprehensive Financial Report for the City of Dover, Delaware Financial Section – Part C – Basic Financial Statements Item 3. City of Dover, Delaware Statement of Net Position Fiduciary Funds June 30, 2021 Pension and Other Post-Employment Custodial Benefit Trust Funds Funds Assets Cash and Cash Equivalents $ 11,168,448 $ 33,517 Investments at Fair Value - Mutual Funds 118,620,646 - Prepaid Expenses - 18,000 Total Assets 129,789,094 51,517 Liabilities Vouchers Payable & Deposit Payable 228,389 831 Total Liabilities 228,389 $ 831 Net Position Net Position Restricted for Pensions 73,389,480 - Net Position Restricted for Health Benefits 56,171,225 - Net Position Restricted for Other Organizations - 50,686 Total Net Position $ 129,560,705 $ 50,686 The notes to financial statements are an integral part of this statement. 90 56

2021 Annual Comprehensive Financial Report for the City of Dover, Delaware Financial Section – Part C – Basic Financial Statements Item 3. City of Dover, Delaware Statement of Changes in Net Position Fiduciary Funds For the Year Ended June 30, 2021 Pension and Other Postemployment Custodial Benefit Trust Funds Funds Additions: Net Investment Income $ 29,386,127 $ - City's Contribution-Payroll Based 2,838,209 - City's Contribution-Lump Sum 3,528,500 - Employee Contribution 172,840 - Gifts/Donations - 33,417 State Grants 552,277 - Other 485 22 Total Additions 36,478,438 33,439 Deductions: Bank Fees - 218 Benefit Payments 8,692,294 - Contractual Services - 6,126 General Administration 30,418 650 Total Deductions 8,722,712 6,994 Change in Net Position 27,755,726 26,445 Net Position - Beginning 101,804,979 24,241 Net Position - Ending $ 129,560,705 $ 50,686 The notes to financial statements are an integral part of this statement. 91 57

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2021 Annual Comprehensive Financial Report for the City of Dover, Delaware Financial Section – Part C Item 3. INDEX Notes to the Basic Financial Statements PAGE 1. FINANCIAL REPORTING ENTITY............................................................. 61 A. The City of Dover, Delaware .................................................................................... 61 B. Reporting Entity ....................................................................................................... 61 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES ............................. 61 A. Basis of Presentation ............................................................................................... 62 B. Basis of Accounting and Measurement Focus ......................................................... 64 C. New Pronouncements ............................................................................................. 65 D. Capital Assets and Long-Term Liabilities.................................................................. 65 E. Budget Procedures................................................................................................... 66 F. Major Transfers ........................................................................................................ 68 G. Inventories and Prepaid Items ................................................................................. 68 H. Cash and Investments .............................................................................................. 68 I. Accounts Receivable ................................................................................................ 69 J. Restricted Assets ...................................................................................................... 69 K. Unbilled Service Receivables ................................................................................... 69 L. Bond Accounts/Issuance Costs ................................................................................ 69 M. Deferred Outflows/Inflows of Resources ................................................................ 69 N. Fund Balances and Net Position .............................................................................. 70 O. Estimates .................................................................................................................. 71 P. Net Position Flow Assumption ................................................................................. 71 3. DEPOSITS AND INVESTMENTS .............................................................. 71 A. Cash in Bank and Cash Equivalents ......................................................................... 71 B. Investments.............................................................................................................. 71 4. CAPITAL ASSETS ................................................................................... 77 5. LONG-TERM OBLIGATIONS ................................................................... 81 A. Summary of Bonded Indebtedness by Issue............................................................ 81 B. Status as of June 30, 2021 – General Obligation Bonds ......................................... 82 C. Change in Long-Term Debt ...................................................................................... 82 D. Debt Service Requirements ..................................................................................... 84 E. Certain Asset Retirement Obligation ....................................................................... 86 6. RESTRICTED NET POSITION .................................................................. 86 7. FUND BALANCES & NET POSITION ........................................................ 87 59 93

2021 Annual Comprehensive Financial Report for the City of Dover, Delaware Financial Section – Part C Item 3. INDEX Notes to the Basic Financial Statements PAGE 8. PROPERTY TAXES ................................................................................ 88 9. INTERFUND RECEIVABLES, PAYABLES AND TRANSFERS ......................... 89 A. Due To/From Other Funds – Charges and Allocations ............................................ 89 B. Temporary Advances ............................................................................................... 89 C. Interfund Transfers .................................................................................................. 89 10. RENTAL INCOME ................................................................................. 90 11. MATERIAL COMMITMENTS ................................................................. 90 12. FORWARD CONTRACTS ........................................................................ 91 13. INSURANCE.......................................................................................... 93 A. Health Insurance – State of Delaware ..................................................................... 93 B. Workers’ Compensation Fund – Self-Insurance ..................................................... 93 C. Other than Health or Workers’ Compensation Insurance ....................................... 93 14. COMPENSATED ABSENCES ................................................................... 93 15. OTHER POST-EMPLOYMENT BENEFITS ................................................. 94 16. DEFERRED COMPENSATION PLAN ........................................................ 102 17. RETIREMENT PLANS ............................................................................ 103 A. Defined Contribution Plan ................................................................................... 103 B. Defined Benefit Plans ......................................................................................... 104 60 94

2021 Annual Comprehensive Financial Report for the City of Dover, Delaware Financial Section – Part C – Notes to the Basic Financial Statements Item 3. NOTES TO FINANCIAL STATEMENTS YEAR ENDED JUNE 30, 2021 1. FINANCIAL REPORTING ENTITY A. The City of Dover, Delaware The City of Dover, Delaware (the City) was incorporated in 1829 and is a municipal corporation governed by an elected mayor and a nine-member council. The accompanying financial statements present the financial position and operating results for fiscal year ended June 30, 2021. B. Reporting Entity In evaluating how to define the reporting entity for financial reporting purposes, management has considered all potential component units. The decision to include a potential component unit was made by applying the criteria set forth in Generally Accepted Accounting Principles in the United States of America (GAAP). The criterion used is that set forth by Statement of Governmental Accounting Standards (GASB) number 14 and as updated by GASB 61 which defines the reporting entity as the primary government and those component units for which the primary government is financially accountable. Financial accountability is defined as appointment of a voting majority of the component unit's board and either a) the ability to impose will by the primary government, or b) the possibility that the component unit will provide a financial benefit to or impose a financial burden on the primary government. Based upon this criterion, the following is a brief review of each potential component unit addressed in defining the government’s reporting entity. Included within the reporting entity: The City provides many services as follows - police protection, street maintenance, sanitation, storm water maintenance, recreation, library, community development, public improvements, planning, safety inspections, electric generation and distribution, water and wastewater services, legislative services and general administration, including employee benefits. These functions are part of the City’s daily operations and therefore are not legally separate component units. Not included within the reporting entity: The City joined the State of Delaware Police Pension Plan for uniformed police officers employed by the City after September 1, 1982. The plan is completely managed by the State of Delaware and, therefore, is not included in the financial statements. The Robbins Hose Volunteer Fire Company, Downtown Dover Partnership, and the Capital School District are not included within the financial reporting entity because they do not meet the criteria for inclusion set forth by GAAP. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The accounting policies of the City conform to generally accepted accounting principles as applicable to governments. A summary of the more significant policies follows: 61 95

2021 Annual Comprehensive Financial Report for the City of Dover, Delaware Financial Section – Part C – Notes to the Basic Financial Statements Item 3. A. Basis of presentation Government-wide Statements: The statement of net position and the statement of activities include the financial activities of the overall government, except for fiduciary activities. Individual funds are not displayed but the statements distinguish governmental activities, generally funded by taxes and other City revenue, from business-type activities (BTAs), generally funded in whole or in part with fees charged to external users. Eliminations have been made for the doubling-up effect of certain internal activities, however, interfund services provided and used are not eliminated in the process of consolidation. The government-wide statement of activities presents a comparison between direct program expenses and program revenues for each function of the City’s governmental activities and for each of the City’s identifiable business-type activities. Direct expenses are those that are specifically associated with a program, function, or activity. Program revenues include a) charges paid by the recipients or beneficiaries of goods or services offered by the programs and b) grants and contributions that are restricted for meeting the operational or capital requirements of programs. Revenues that are not classified as program revenues, including all taxes, are presented as general revenues. The City allocates the costs of certain governmental services to the costs of business-type activities (indirect expense allocation). These costs include allocated amounts of city management, centralized budgetary formulation and oversight, accounting, financial reporting, payroll, fleet and building maintenance, procurement contracting and oversight, investing and cash management, personnel services, etc. The allocations are charged to the BTAs based on the use of these services. As a matter of policy, the costs of certain governmental functions are not allocated to the business-type activities such as tax assessor, planning and zoning, public safety, library and recreation and community services. Fund Financial Statements: The accounts of the City are organized based on funds, each of which is considered a separate accounting entity. The operations of each fund are accounted for with a separate set of self-balancing accounts that comprise its assets, liabilities, deferred inflows/outflows, fund equity, revenues and expenditures or expenses, as appropriate. Government resources are allocated to and accounted for in individual funds based upon the purposes for which they are to be spent and how spending activities are controlled. The fund financial statements provide information about the City’s funds, including fiduciary funds. The emphasis of fund financial statements is on major governmental and enterprise funds, each displayed in a separate column. All remaining governmental funds are aggregated and reported as non-major funds. The City reports the following major governmental fund: General Fund The General Fund is the general operating fund of the City. It is used to account for all financial resources except those required to be accounted for in another fund. 62 96

2021 Annual Comprehensive Financial Report for the City of Dover, Delaware Financial Section – Part C – Notes to the Basic Financial Statements Item 3. The City reports the following major proprietary fund: Electric Revenue Fund This fund incorporates all transactions related to the transmission and distribution, as well as generation of electricity. The City has contracted with both The Energy Authority and North American Energy Services to manage the City’s power supply and generation assets. The City reports the following non-major funds: Water Fund This fund accounts for transactions related to water services. The City also holds lease agreements with cell phone companies for equipment placed on City water towers. Wastewater Fund This fund accounts for transactions related to wastewater services, including the payment of fees to Kent County for the treatment of sewage. Internal Service Fund The City has created one internal service fund to account for the activities related to self-insured Workers’ Compensation. Receipts are provided from contributions by the City’s general fund and it’s three enterprise funds. Expenses are related to payment of claims, premiums, and administration costs. Actuarial analyses are completed every three (3) years to ensure sufficient reserves for claims for the Workers’ Compensation Fund. The last analysis was done on June 30, 2019. Special Revenue Funds The City has ten (10) Special Revenue Funds to account for proceeds of specific revenue sources that are restricted or committed to expenditure for specified purposes other than debt service or capital projects. Fiduciary Funds Fiduciary funds consist of trust and custodial funds and are used to report assets held by the City in a trustee or custodial capacity for other purposes. These funds are, therefore, not available to support City programs. The City is the trustee for the City’s two pension plans; the Police Pension Fund, and the Employee Pension Fund, as well as the Other Post-Employment Benefit Trust. The activity of these plans are accounted for in the Basic Financial Statements. Custodial Funds Custodial funds are used to account for assets held by the City as a custodian for individuals, private organizations, or other governments. The City has two (2) custodial funds. The City acts as the receiving and paying agent for the Fourth of July Celebration Committee and the Dover Days Celebration Committee. 63 97

2021 Annual Comprehensive Financial Report for the City of Dover, Delaware Financial Section – Part C – Notes to the Basic Financial Statements Item 3. B. Basis of Accounting and Measurement Focus Basis of accounting refers to when revenues and expenditures or expenses are recognized in the accounts and reported in the financial statements. Basis of accounting relates to the timing of the measurements made, regardless of the measurement focus applied. All governmental funds are accounted for using the modified accrual basis of accounting and the current financial resources measurement focus. Their revenues are recognized when they become measurable and available as net current assets. Revenues that are susceptible to accrual include property taxes, grants, and billable service charges. All other revenues are accounted for when they are received. Property taxes are recognized in the fiscal period during which they are levied, provided they are “available;” meaning they are collected in the current period or are expected to be collected soon enough thereafter to satisfy liabilities in the current period. The City considers all revenues reported in the governmental funds to be available if the revenues are collected within sixty days after year- end, except for trash collection, which has a thirty-day collection period. Expenditures are generally recognized under the modified accrual basis of accounting when the related fund liability is incurred. The exception to this general rule is principal and interest on general long-term debt which is recognized when due. Also, claims and judgments and compensated absences are recognized as expenditures to the extent they have matured. General capital asset acquisitions are reported as expenditures in governmental funds. Proceeds of general long-term debt and acquisitions under capital leases are reported as other financing sources. The government-wide financial statements as well as all proprietary and fiduciary funds are accounted for using the accrual basis of accounting and the economic resources measurement focus. A reconciliation of the governmental fund financial statements prepared on the modified accrual basis of accounting to the government-wide financial statements prepared on the accrual basis of accounting is also provided on pages 50 & 52. The types of transactions included in program revenues in the government-wide statement of activities include charges for services, operating grants, and capital grants. Operating income reported in the proprietary fund financial statements includes revenue and expenses related to the continuing operations of the funds. Charges to customers for sales and services constitute the principal operating revenue for proprietary funds. Principal operating expenses are the costs of providing goods and services, which include purchased power, administrative expenses, and depreciation of capital assets. All revenues and expenses not meeting this definition are reported as non-operating revenues and expenses. 64 98

2021 Annual Comprehensive Financial Report for the City of Dover, Delaware Financial Section – Part C – Notes to the Basic Financial Statements Item 3. C. New Pronouncements GASB Statement No. 84, “Fiduciary Activities.” Issued in January 2017, the requirements of this Statement enhances consistency and comparability by (1) establishing specific criteria for identifying activities that should be reported as fiduciary activities, and (2) clarifying whether and how business- type activities should report their fiduciary activities. Greater consistency and comparability enhance the value provided by the information reported in financial statements for assessing government accountability and stewardship. A change in accounting principle resulted in the Downtown Dover partnership fund to be removed as a custodial fund as it did not meet the criteria to be reported and balances previously recorded as liabilities in agency funds to now be recorded as net position in custodial funds. Net position balances of $11,287 and $12,954 were recorded for the 4th of July and Dover Day’s Celebration funds, respectively. The effect of the restatement as of July 1, 2020 was $24,241. GASB Statement No. 90, “Majority Equity Interest – an amendment of GASB Statements No. 14 and No. 61.” The requirements of this Statement improve consistency in the measurement and comparability of the financial statement presentation of majority equity interests in legally separate organizations, and improve the relevance of financial statement information for certain component units. GASB Statement No. 98, “The Annual Comprehensive Financial Report.” Issued in October 2021, this statement establishes the term annual comprehensive financial report and its acronym ACFR. The new term and acronym replace instances of comprehensive annual financial report and its acronym in generally accepted accounting principles for state and local governments. The City early implemented the Statement in fiscal year 2021. D. Capital Assets and Long-Term Liabilities Capital assets used in Governmental Fund type operations (general capital assets) are accounted for in the government-wide financial statements rather than in the funds. Public domain ("infrastructure") general capital assets consisting of certain improvements other than buildings, including roads, bridges, curbs and gutters, streets and sidewalks, drainage systems and lighting systems, are capitalized in the government-wide financial statements along with other general capital assets. The capitalization threshold for the City’s assets is $5,000. Personal computers and related hardware valued under $5,000 are manually controlled by the Information Technology Department. All capital assets are valued at historical cost and donated capital assets are shown at acquisition value based on the developers’ cost of the infrastructure. Depreciation has been provided on general capital assets and is shown in Note 4. Depreciation has been provided over the estimated useful lives using the straight-line method. Estimated useful lives are as follows: Buildings 20 – 50 years Infrastructure 20 – 50 years Vehicles 5 – 7 years Equipment, Furniture & Fixtures 5 – 15 years 65 99

2021 Annual Comprehensive Financial Report for the City of Dover, Delaware Financial Section – Part C – Notes to the Basic Financial Statements Item 3. Long-term liabilities expected to be financed from governmental funds and the long-term estimated liabilities for compensated absences are accounted for in the government-wide financial statements, but not in the governmental funds. Depreciation of all exhaustible capital assets used by proprietary funds is charged as an expense against their operations. Accumulated depreciation is shown in Note 4 of this section. Depreciation in the proprietary funds has been provided over the estimated useful lives using the straight-line method. The estimated useful lives are presented below: Building, Mains & Plant 25 – 90 years Improvements 15 – 20 years Equipment 5 – 15 years Vehicles 5 – 7 years The remaining useful life for certain buildings, vehicles, equipment, and plant assets recorded in the Electric Fund is being shortened to coincide with the estimated retirement date of the City’s principal generation assets. Capital assets are maintained substantially and reported in accordance with the Uniform System of Accounts prescribed by the Federal Energy Regulatory Commission (FERC) for the Electric Fund and the National Association of Regulatory Utility Commissioners (NARUC) for the Water and Wastewater Fund. E. Budget Procedures Legally adopted budgets are prepared for the General Fund, Water Fund, Wastewater Fund, Electric Revenue Fund, the Internal Service Fund, and the following non-major special revenue funds: Police Federal Grants Fund, Police State Grants Fund, Library Grants Fund, Municipal Street Aid Fund, Community Development Block Grant Fund (Federal), State Department of Transportation Grants Fund (Community Transportation), Substance Abuse Prevention Program Fund, Electronic Red-Light Safety Program Fund, Lodging Tax Fund, and the Realty Transfer Tax Fund. The General Governmental Capital Projects Fund provides for separate budgets to cover the planning and control of capital items for the governmental programs. The financial transactions of this fund are included in the financial statements of the General Fund. The Electric Improvement and Extension Fund, the Water Improvement and Extension Fund, and the Wastewater Improvement and Extension Fund are sections of each utility enterprise. These sections are required by bond resolutions. Separate budgets for these funds cover the planning and control of only the capital items of the utilities. The financial transactions of these funds are included in the financial statements of the Electric Revenue Fund, the Water Fund, and the Wastewater Fund. The City prepares the budget for the General Fund revenues on a basis consistent with the modified accrual basis. The expenditures are accounted for when the purchase orders are issued. The budget and actual schedule in the legal budget format (non-GAAP), adopted by the City for the General Fund, the City’s major governmental fund, is presented in the required supplementary information section of this report. 66 100

2021 Annual Comprehensive Financial Report for the City of Dover, Delaware Financial Section – Part C – Notes to the Basic Financial Statements Item 3. Budgets for the Electric Revenue Fund, Water Fund, Wastewater Fund, and Internal Service Fund are prepared on an accrual basis. Budgets are prepared under the assumption that the principal redemption of long-term debt must be assumed by Enterprise Fund activity in conformity with the bond ordinance. The Combining General Fund Balance Sheet and Combining Statement of Revenues, Expenditures and Changes in Fund Balances of the General Fund as well as the budget and actual schedules of the other funds are also presented in the supplementary information section of this report because they are not required to be presented elsewhere. According to the City's procedures, the preceding year's ending net budgetary balances are considered as resources for the following year. The beginning balances become operating items of revenues in the budgets. Estimated ending budgetary balances provide the balancing amount for each budget. In accordance with the City’s financial policies, adopted by City Council, the General, Water, and Wastewater funds are required to maintain an 8% minimum ending budget balance and the Electric fund is required to maintain a 12% minimum. These percentages are expressed as a percentage of operating revenues, excluding the beginning budget balance. Unassigned fund balances as a percentage of current year operating revenues on a budgetary basis for the General Fund, Water Fund, Wastewater Fund, and Electric Fund are 21.8%, 22.7%, 4.5% and 28.3% respectively, and all are exceeding the financial policy maximum for each fund except for Wastewater, which is under the policy minimum. Per the Financial policy, the General Fund, Water and Electric Fund overages will be addressed in the next year’s budget. The underage for the Wastewater Fund will also be addressed in the next year’s budget. The City Manager may approve transfers of savings from completed CIP items to non-completed CIP items. Any transfers that cause the item or project to exceed its original budget 10% or greater will be communicated to City Council and the Controller/Treasurer. The City Manager may approve intra- fund transfers (i.e., within the General Fund) of up to five percent per annum, except for line items associated with salary and benefits. Budget amendments exceeding that authorized above or that affect budget balances shall be referred to City Council. (Source: City of Dover Policy Manual, Budget Administration – Policy for Operating Departments, 2014). The following activities exceeded their budget: 1. Life Safety is over budget by $1,499 due to a new position that was transferred from the Inspections department by the City Manager, thereby creating an overage. 2. The City Manager’s Office is over budget by $13,858 resulting from City Council directing the SEGAL “Study of Classification, Compensation, and Benefit System and Pay for Performance” to move forward even though it was not in the budget. 3. Debt Service exceeded the budget by $3,688 due to interest on the new HVAC loan, which was not budgeted. 4. Transfer to Cable Franchise Reserve of $14,765 was not budgeted. 5. Storm Expense of $271,253 was not budgeted. 6. Appropriation to Police Pension Fund - State Grant is over budget by $52,277 due to the receipt of State of Delaware funds exceeding the budgeted amount and then passed through to the Police Pension Fund as an expenditure. 7. Appropriation to Street Light Fund exceeded the budget by $961. 67 101

2021 Annual Comprehensive Financial Report for the City of Dover, Delaware Financial Section – Part C – Notes to the Basic Financial Statements Item 3. In all cases, the increase was needed to meet operational requirements of the City. F. Major Transfers The Electric Revenue Fund, Water Fund, and Wastewater Fund annually transfer a budgeted portion of their revenues to the General Fund. Transfers are also made from the Realty Transfer Tax Fund, Municipal Street Aid Fund, Electronic Red-Light Safety Program (ERLSP) Fund and both Police Grant Funds (State & Federal) to the General Fund. The purpose of these transfers is to provide routine subsidies to the General Fund for operating functions, capital project expenditures and debt service requirements. The Lodging Tax receipts are only to be used for infrastructure, according to City Ordinance #2019-16. Therefore, amounts received in this fund are transferred to the General Capital Projects Fund. Several Special Revenue Funds represent a pass-through of revenues collected by the State of Delaware on behalf of the City or other State revenues provided for in Delaware Code. These receipts are subsequently transferred to the General Fund in support of public safety, City maintenance of State roads and other public services. Several transfers between the General Fund and the non-major governmental funds are netted in the government-wide financial statements. G. Inventories and Prepaid Items Both inventories and prepaid items are accounted for using the consumption method. Inventories are treated as operational expenditures at the time of use rather than at the time of purchase for both the governmental and proprietary funds. Prepaid items are reflective of insurance policies and commitments due on July 1 for the following fiscal year. The warehouse inventories, consisting mostly of parts and supplies, are maintained on a perpetual inventory basis. Inventories of all funds are valued at cost and net of reserves, utilizing a weighted moving average method of valuation. The City maintains inventory reserves to charge off any damaged or obsolete items. The Electric Revenue Fund maintains fuel inventory for the generating assets on a perpetual basis and utilizes the weighted average method of valuation. H. Cash and Investments The City's cash and cash equivalents consist of cash on hand, demand deposits and short-term investments with original maturities of three months or less from the acquisition date. Investments consist of notes and bonds issued by the United States Government and its agencies, corporate debt instruments, common stock, and open-end mutual funds. The fair value of investments is determined in accordance with GASB 72 Fair Value Measurements. 68 102

2021 Annual Comprehensive Financial Report for the City of Dover, Delaware Financial Section – Part C – Notes to the Basic Financial Statements Item 3. I. Accounts Receivable Allowances for uncollectible accounts are maintained and uncollectible accounts are charged off against these allowances. The authority to write off accounts is vested with the City Council. Current balances of allowances are as follows: General Fund $604,804 Water Fund 21,259 Wastewater Fund 20,101 Electric Revenue Fund 1,061,169 J. Restricted Assets Certain assets are restricted because their use is limited by bond covenants, endowments, or other similar third-party restrictions. Restricted assets as of June 30, 2021 total $74,794,510 including cash and cash equivalents of $18,332,785 and $56,461,725 in investments. Of this amount, $704,249 is attributed to governmental activities and $74,090,261 is attributable to business-type activities. K. Unbilled Service Receivables The City follows a policy of billing for services in accordance with billing cycle procedures. All known services rendered are billed and incorporated in the books at the end of the fiscal year. L. Bond Accounts/Issuance Costs The City recognizes issuance costs in governmental funds, as well as the proprietary funds, as a current period expense in accordance with GASB 65. All unamortized bond discounts and issuance costs held by the general fund and the proprietary funds have been expensed in prior years. M. Deferred Outflows/Inflows of Resources The statement of net position, in addition to reporting assets and liabilities, reports a separate section for deferred outflows / inflows of resources. Deferred outflows / inflows of resources represent either a consumption or acquisition of net position that applies to a future period(s) and will not be recognized as an outflow / inflow (expense / revenue) of resources until that period. The City’s deferred outflows / inflows of resources are reported on the government-wide statement of net position and proprietary funds statement of net position for pension and Other Post- Employment Benefits (OPEB). For purposes of measuring the OPEB and pension liability, deferred outflows of resources and deferred inflows of resources related to OPEB and pensions, and OPEB and pension expense, information about the fiduciary net position of the OPEB and pension plans and 69 103

2021 Annual Comprehensive Financial Report for the City of Dover, Delaware Financial Section – Part C – Notes to the Basic Financial Statements Item 3. additions to/deductions from their fiduciary net position have been determined on the same basis as they are reported by the City of Dover’s OPEB Trust and pension systems. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. The OPEB and pension systems report investments at fair value. Deferred inflows of resources related to OPEB and pensions are explained in Notes 15 and 17, respectively. The City also reports unavailable revenue as a deferred inflow of resources only in the governmental funds balance sheet, which arises only under a modified accrual basis of accounting that qualifies for reporting in this category. The governmental funds report unavailable revenues from property taxes, demolitions, general billings, grass cutting, police extra-duty, and State grants. N. Fund Balances and Net Position Governmental fund balances are reported based on a hierarchy of constraints on the nature or specific purpose to which the funds can be spent. The classifications of fund balance are as follows: • The non-spendable fund balance classification includes amounts that cannot be spent either because they are in a non-spendable form or because they are legally or contractually required to be maintained intact. • The restricted fund balance classification includes amounts that can be spent only for specific purposes defined by the City Charter, the City Code, State or Federal laws, or externally imposed conditions by grantors or creditors. • The committed fund balance classification includes amounts that can be used only for specific purposes determined by the formal action by City Council through a motion or an adopted City Ordinance which is approved by a majority vote of City Council, the City’s highest level of decision-making authority. • The assigned fund balance classification includes amounts authorized and established by City Council. The City’s financial policies as adopted by City Council includes the purpose and description of all classes of fund balance. Modifications require City Council approval. • The unassigned fund balance classification includes amounts that have not met the criteria of the previously mentioned fund balance classifications. The unassigned fund balance is available for expenditures as they are incurred. The general fund is the only fund that reports a positive unassigned fund balance amount. The City considers restricted, committed, or assigned amounts to have been spent when a related expenditure is incurred. Proprietary funds report net position in three categories: 1) Net investment in capital assets 2) Restricted and 3) Unrestricted Fund balances and net position are further explained in Note 7. 70 104

2021 Annual Comprehensive Financial Report for the City of Dover, Delaware Financial Section – Part C – Notes to the Basic Financial Statements Item 3. O. Estimates The preparation of financial statements in conformity with generally accepted accounting principles in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. P. Net Position Flow Assumption Sometimes the City will fund outlays for a specific purpose from both restricted (e.g., restricted bond or grant proceeds) and unrestricted resources. To calculate the amounts reported as restricted and unrestricted net position and fund balance in the government-wide, proprietary fund, and governmental fund financial statements, a flow assumption must be made about the order in which the resources are applied. It is the City’s policy to consider restricted net position to have been depleted before unrestricted net position is applied. 3. DEPOSITS AND INVESTMENTS A. Cash in Bank and Cash Equivalents Custodial credit risk – deposits. The City’s depository institutions collateralize the City’s deposits over and above those covered by the $250,000 FDIC Insurance limit with specific securities, which are ‘marked to market’ daily against the aggregate balances. The market value of the collateral is at a minimum of or equal to 102% of the amount of applicable deposits. Collateral consists solely of full faith and credit obligations of the United States Government or fixed rate obligations of agencies or instruments of the United States Government. On June 30, 2021, the carrying amount of unrestricted cash and cash equivalents totaled $33,642,927, and the bank cash balances totaled $33,659,715. The carrying amount of restricted cash totaled $18,332,785 and the bank cash balances on restricted accounts totaled $18,332,785 and $3,363,434 of the bank balance was exposed to custodial credit risk because it was uninsured and uncollateralized. Fiduciary funds cash and cash equivalents carrying value of $11,201,965 included $11,201,628 of cash deposits. The restricted deposits are held by the City for bond-related transactions, special purpose operating and capital grants. B. Investments The City Council has adopted an investment policy which is reviewed every two years and updated as needed to meet best practices. The Pension Boards have adopted their own distinct investment policies to govern the Pension Trust funds because the objectives differ from those of the City. The City’s investments are segregated from the Pension Trust investments for clarity. As of June 30, 2021, the City had the following investments: 71 105

2021 Annual Comprehensive Financial Report for the City of Dover, Delaware Financial Section – Part C – Notes to the Basic Financial Statements Item 3. Investments Held by Third Party Custodian The City categorizes its fair value measurements within the fair value hierarchy established by generally accepted accounting principles. The hierarchy is based on the valuation inputs used to measure the fair value of the asset. The City’s government wide investments are held in several different investment capacities from mutual funds and certificate of deposit with a significant investment in debt securities. • Level 1 – Valuations based on unadjusted quoted prices for identical assets or liabilities in active markets. • Level 2 – Valuations based on quoted prices for similar assets or liabilities in active markets or identical assets or liabilities in less active markets, such as dealer or broker markets; and • Level 3 – Valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable, such as pricing models, discounted cash flow models and similar techniques not based on market, exchange, dealer, or broker-traded transactions. The City recorded the following investments as of June 30, 2021: Fair Value Measurements Using: Quoted Prices Significant Weighted in Active Other Average Markets Observable Maturity for Identical Inputs Investment Type (Years) June 30, 2021 Assets (Level 1) (Level 2) Government-Wide: Investments by fair value level Debt securities: U.S. Government Treasuries 2.86 $ 22,810,066 $ - $ 22,810,066 Federal Agency Bond / Note 3.70 25,301,466 - 25,301,466 Municipal Obligations 4.27 5,407,056 - 5,407,056 Domestic Fixed Income 3.91 33,180,090 - 33,180,090 International Fixed Income 5.76 2,853,322 - 2,853,322 Federal Agency mortgage backed security* 10.28 2,384,576 627,781 1,756,795 Total Investments by fair value level 3.84 $ 91,936,576 $ 627,781 $ 91,308,795 Other Investments, at amortized cost: Money Market Mutual Funds & Equity Stock 10,273,883 Certificates of Deposit 2,420,385 Total other investments 12,694,268 Total Government-Wide Investments $ 104,630,844 Interest rate risk: As a means of limiting its exposure to fair value losses arising from rising interest rates the City’s investment policy limits U.S. Government securities and most other investments to a maximum maturity of 10 years from the date of purchase. Commercial Paper, Bankers’ Acceptances and Repurchase Agreements all have a much shorter investment period ranging from 90 days to 365 days. Short-term cash flow balances are invested up to one year. The portfolio’s weighted average maturity is 3.84 years. 72 106

2021 Annual Comprehensive Financial Report for the City of Dover, Delaware Financial Section – Part C – Notes to the Basic Financial Statements Item 3. * For asset backed and Agency mortgage-backed securities, the maximum maturity shall be defined as the weighted average life (“WAL”). WAL is a convention that estimates the expected weighted amount of time, in years, for the principal amount of an issue to be fully paid. For Agency mortgage-backed securities, WAL shall be limited to 10 years, measured at the settlement date, provided by Bloomberg Financial Markets. As of June 30, 2021, Federal Agency mortgage- backed security WAL is 10.28. Credit risk: The City’s investment policy applies the prudent-person rule. Investments are made as a prudent person would be expected to act, with discretion and intelligence, to seek reasonable income, preserve capital and, in general, avoid speculative investments. As of June 30, 2021, the City’s fixed income and short-term investments carried the following S&P Global Credit Ratings as compared to the policy’s minimum ratings: Policy Minimum Percent Authorized Investments Rating Category Portfolio Ratings Allocation U.S. Government N/A N/A 21.80% U.S. Government Agency N/A N/A 26.46% Certificates of Deposit and Short-Term A-1 Short-Term A-1 to A-1+ 2.31% Time Deposits Long-Term AA N/A 0.00% Corporate Debt Issued by a US Corporation Commercial Paper A-1 N/A 0.00% Corporate Notes/Bonds A BBB+ to AAA 31.71% International Fixed Income A AAA 2.73% Repurchase Agreements ST A-1; LT AA N/A 0.00% Registered Investment Companies AAAm AAAm 9.82% (Money Market Funds) Municipal Obligations A A to AAA 5.17% Concentration of credit risk: As of June 30, 2021, United States Treasury Notes represented 21.28% of the portfolio, Federal National Mortgage Association represented 10.40% of the portfolio and Federal Home Loan Mortgage Association represented 10.26% of the portfolio. No other issuer exceeded 5% of the portfolio. Investments Held by Trustee for Other Post-Employment Benefits & Pensions The Pension Trusts and OPEB Trust invest exclusively in open-end mutual funds. The fair value is measured using the net asset value (NAV) as quoted in active markets in a manner consistent with the measurement principles for investment companies calculated as of June 30, 2021. 73 107

2021 Annual Comprehensive Financial Report for the City of Dover, Delaware Financial Section – Part C – Notes to the Basic Financial Statements Item 3. Investment Type June 30, 2021 Other Postemployment Benefits (OPEB) & Employee's Police OPEB Pension Funds (Trustee held): Plan Plan Trust Total Investments measured at the net asset value (NAV) Fixed Income: Short-term bond funds 2,610,353 934,869 3,277,399 6,822,622 Intermediate-term bond funds 2,089,576 467,719 2,457,276 5,014,571 Long-term bond funds 2,594,462 773,665 2,175,224 5,543,350 Inflation-protected bond funds 2,627,770 784,270 2,199,350 5,611,390 High yield bond funds 2,629,479 784,802 2,750,918 6,165,198 Nontraditional bond funds 2,087,994 467,365 2,457,763 5,013,123 Total Fixed Income 14,639,634 4,212,690 15,317,930 34,170,254 Equities: Large cap value funds 4,305,851 1,286,904 4,477,678 10,070,433 Large cap growth funds 5,951,259 1,776,316 6,225,445 13,953,020 Mid-cap value funds 2,140,879 640,244 4,478,129 7,259,253 Mid-cap blend funds 2,152,944 642,924 - 2,795,867 Small-cap value funds 4,288,315 1,281,493 6,149,444 11,719,253 International growth funds 3,724,703 1,111,017 3,896,093 8,731,813 World stock funds 3,731,412 1,113,440 3,903,173 8,748,025 Diversified emerging market funds 6,402,055 1,910,291 6,697,787 15,010,134 Real estate funds 2,628,353 785,121 2,749,120 6,162,595 Total Equities 35,325,772 10,547,751 38,576,869 84,450,392 Total investments measured at the NAV $ 49,965,406 $ 14,760,440 $ 53,894,800 $ 118,620,646 74 108

2021 Annual Comprehensive Financial Report for the City of Dover, Delaware Financial Section – Part C – Notes to the Basic Financial Statements Item 3. The City recorded the following OPEB and Pension investments as of June 30, 2021: Quoted Prices in Active Markets for Identical Investment Type June 30, 2021 Assets (Level 1) Other Postemployment Benefits (OPEB) & Pension Funds Investments by fair value level Mutual Funds $ 118,620,646 $ 118,620,646 Limits on investments are as follows: Category Allocation Target Percentage Employee's Police OPEB Plan Plan Trust Cash & Short Term Bonds 11.00% 13.00% 9.00% Non-traditional Bonds 4.00% 3.00% 4.50% Inflation Protected Bonds 5.00% 5.00% 4.00% Intermediate Term Bonds 4.00% 3.00% 4.50% Long Term Bonds 5.00% 5.00% 4.00% High Yield Bond 5.00% 5.00% 5.00% Large Cap Value 8.00% 8.00% 8.00% Large Cap Growth 11.00% 11.00% 11.00% Mid Cap 8.00% 8.00% 8.00% Small Cap 8.00% 8.00% 11.00% Real Estate Investment 5.00% 5.00% 5.00% Foreign Equity 14.00% 14.00% 14.00% Emerging Markets 12.00% 12.00% 12.00% 100.00% 100.00% 100.00% Custodial Credit Risk is the risk that, in the event of the failure of the counterparty, the City will not be able to recover the value of its investments or collateral securities that are in the possession of an outside party. To avoid custodial credit risk, the City requires all investments held with a third-party custodian to be registered in the City’s name. Interest Rate Risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. Generally, the longer the maturity of an investment, the greater the sensitivity of its fair value to changes in market interest rates. The Pension and OPEB Plans’ investment policies formally address interest rate risk. As of June 30, 2021, the Pension and OPEB plans had $34,170,254 in fixed income investments. The weighted average maturity for all its fixed income funds was 6.49 years. Credit Risk: The OPEB Plan’s investments are exposed to both market risk, the risk arising from changes in fair value, and credit risk, the risk of failure by another party to perform according to the terms of a contract. The Pension and OPEB Plan’s investment balances on June 30, 2021 consisted of open-ended mutual funds. 75 109

2021 Annual Comprehensive Financial Report for the City of Dover, Delaware Financial Section – Part C – Notes to the Basic Financial Statements Item 3. Concentration of Credit Risk: Concentration of credit risk is the risk of loss attributable to the magnitude of an investment in a single issuer. The Pension and OPEB Plan’s investment policies do not formally address concentration of credit risk. The Pension and OPEB Plans held no positions of five percent or more in securities of any single issuer on June 30, 2021. Foreign Currency Risk is the risk that changes in the exchange rate of investments will adversely affect the fair value of an investment. As of June 30, 2021, the Pension and OPEB Plans had no investments that were denominated in foreign currency. 76 110

2021 Annual Comprehensive Financial Report for the City of Dover, Delaware Financial Section – Part C – Notes to the Basic Financial Statements Item 3. 4. CAPITAL ASSETS A summary of the capital asset activity for the year ended June 30, 2021 is presented below and on the following three pages: Beginning Ending Balance Increases Decreases Adjustments Balance Governmental activities: Capital assets, not being depreciated Land $ 4,724,062 $ - $ 106,395 $ 2,689 $ 4,620,356 Construction in progress 1,196,534 1,159,108 173,479 (50,159) 2,132,004 Total capital assets, not being depreciated 5,920,596 1,159,108 279,874 (47,470) 6,752,360 Capital assets, being depreciated: Buildings 28,784,722 294,126 99,393 13,797 28,993,252 Furniture and fixtures 821,678 - 62,303 - 759,375 Equipment 9,265,825 515,666 359,834 - 9,421,657 Vehicles 6,664,602 135,459 257,491 42,552 6,585,122 Lights 655,647 - - - 655,647 Improvements other than buildings 61,133,220 10,500 78,871 8,750 61,073,599 Total capital assets, being depreciated 107,325,694 955,751 857,892 65,099 107,488,652 Less accumulated depreciation for: Buildings (6,954,454) (616,073) 88,572 (13,797) (7,495,752) Furniture and fixtures (663,781) (65,337) 62,303 - (666,815) Equipment (6,966,608) (432,600) 355,116 - (7,044,092) Vehicles (4,233,110) (642,923) 251,242 (42,552) (4,667,343) Lights (538,129) (11,576) - - (549,705) Improvements other than buildings (32,252,625) (2,103,410) 78,874 (4,565) (34,281,726) Total accumulated depreciation (51,608,707) (3,871,919) 836,107 (60,914) (54,705,433) Total capital assets, being depreciated, net 55,716,987 (2,916,168) (21,785) 4,185 52,783,219 Governmental activities capital assets, net $ 61,637,583 $ (1,757,060) $ 301,659 $ (43,285) $ 59,535,579 The capital asset adjustment within the Construction in Progress section above is due to the decision to expense, rather than capitalize Small Park Improvements, since they should be considered maintenance costs. (Continued) 77 111

2021 Annual Comprehensive Financial Report for the City of Dover, Delaware Financial Section – Part C – Notes to the Basic Financial Statements Item 3. (Continued) Beginning Ending Balance Increases Decreases Adjustments Balance Business-type activities: Electric Revenue Fund Capital assets, not being depreciated Land $ 1,458,066 $ - $ - $ - $ 1,458,066 Construction in progress * 4,080,996 1,644,050 1,238,256 982,239 3,504,551 Total capital assets, not being depreciated 5,539,062 1,644,050 1,238,256 982,239 4,962,617 Capital assets, being depreciated Buildings 14,611,758 183,648 2,211,595 - 12,583,811 Vehicles and Equipment ** 28,899,994 670,192 545,702 - 29,024,484 Transformers, Meters, T&D & Fiber Optic Lines, Street Lights 65,830,930 1,324,620 9,500 - 67,146,050 SS, Switch Yards, Switchgears 36,716,722 37,765 25,716 - 36,728,771 Boiler, Turbo Generators, Cap Int - VS 39,122,189 - - - 39,122,189 Other (Streets, EST, Swr Lines, Wells, Eng & Legal Svcs, Land Impr) 7,662,503 - - - 7,662,503 Total capital assets, being depreciated 192,844,096 2,216,225 2,792,513 - 192,267,808 Less accumulated depreciation for: Buildings (11,957,895) (692,190) 2,221,021 - (10,429,064) Vehicles and Equipment (25,222,322) (1,020,680) 513,807 8,753 (25,737,948) Transformers, Meters, T&D & Fiber Optic Lines, Street Lights/Signals (39,038,418) (1,778,798) 9,500 - (40,807,716) SS, Switch Yards, Switchgears (16,715,844) (983,965) 15,307 - (17,684,502) Boiler, Turbo Generators, Cap Int - VS (30,286,361) (2,530,821) - - (32,817,182) Other (Streets, EST, Swr Lines, Wells, Eng & Legal Svcs, Land Impr) (6,487,023) (183,189) - - (6,670,212) Total accumulated depreciation (129,707,863) (7,189,643) 2,759,635 8,753 (134,146,624) Total capital assets, being depreciated, net 63,136,233 (4,973,418) (32,878) 8,753 58,121,184 Total electric revenue fund capital assets, net $ 68,675,295 $ (3,329,368) $ (1,271,134) $ (990,992) $ 63,083,801 * The capital asset adjustment within the Construction in Progress section above is due to 3 small projects that were under the $5,000 threshold, as well as license expense and maintenance fees that had been included in previous years for the ERP Project. ** The adjustment to accumulated depreciation in Vehicles and Equipment is due to a conversion error which resulted in the asset not being depreciated in the prior 2 years. (Continued) 78 112

2021 Annual Comprehensive Financial Report for the City of Dover, Delaware Financial Section – Part C – Notes to the Basic Financial Statements Item 3. (Continued) Beginning Ending Balance Increases Decreases Adjustments Balance Business-type activities: Water Fund Capital assets, not being depreciated Land $ 130,438 $ - $ - $ - $ 130,438 Construction in progress 7,394,540 2,212,831 8,339,550 - 1,267,821 Total capital assets, not being depreciated 7,524,978 2,212,831 8,339,550 - 1,398,259 Capital assets, being depreciated Buildings 1,964,621 7,720,601 - - 9,685,222 Distribution Mains/Accessories 25,222,369 520,860 8,750 - 25,734,479 Pumping stations 13,159,265 - - - 13,159,265 Sewer Lines 38,284 - - - 38,284 Vehicles and equipment * 5,264,264 116,083 94,780 (10,586) 5,274,981 Total capital assets, being depreciated 45,648,803 8,357,544 103,530 (10,586) 53,892,231 Less accumulated depreciation for: Buildings (936,997) (71,691) - - (1,008,688) Vehicles and Equipment (3,700,473) (181,580) 76,601 - (3,805,452) Distribution Mains/Accessories (9,050,698) (484,224) 4,565 - (9,530,357) Pumping Stations (5,824,178) (246,025) - - (6,070,203) Sewer Lines (18,363) (759) - - (19,122) Total accumulated depreciation (19,530,709) (984,279) 81,166 - (20,433,822) Total capital assets, being depreciated, net 26,118,094 7,373,265 (22,364) (10,586) 33,458,409 Total water fund capital assets, net $ 33,643,072 $ 9,586,096 $ (8,361,914) $ (10,586) $ 34,856,668 * The capital asset adjustment to Vehicles and Equipment is due to a conversion error which resulted in a positive book value on a piece of equipment which had been fully depreciated. (Continued) 79 113

2021 Annual Comprehensive Financial Report for the City of Dover, Delaware Financial Section – Part C – Notes to the Basic Financial Statements Item 3. (Continued) Beginning Ending Balance Increases Decreases Adjustments Balance Business-type activities: Wastewater Fund Capital assets, not being depreciated Land $ 32,802 $ - $ - $ - $ 32,802 Construction in progress 806,333 1,019,063 1,045,296 - 780,100 Total capital assets, not being depreciated 839,135 1,019,063 1,045,296 - 812,902 Capital assets, being depreciated Buildings 62,041 - - - 62,041 Distribution Mains/Accessories 204,662 - - - 204,662 Pumping Stations 17,797,157 24,042 - - 17,821,199 Sewer Lines 34,257,465 939,692 - - 35,197,157 Vehicles and equipment * 2,367,469 376,263 64,899 10,586 2,689,419 Total capital assets, being depreciated 54,688,794 1,339,997 64,899 10,586 55,974,478 Less accumulated depreciation for: Buildings (42,005) (2,681) - - (44,686) Vehicles and Equipment (1,624,300) (137,068) 64,899 - (1,696,469) Distribution mains, hydrant, and accessories (14,968) (2,868) - - (17,836) Pumping Stations (5,695,893) (536,142) - - (6,232,035) Sewer Lines (15,104,534) (780,781) - - (15,885,315) Total accumulated depreciation (22,481,700) (1,459,540) 64,899 - (23,876,341) Total capital assets, being depreciated, net 32,207,094 (119,543) - 10,586 32,098,137 Total wastewater fund capital assets, net $ 33,046,229 $ 899,520 $ (1,045,296) $ 10,586 $ 32,911,039 * The capital asset adjustment to Vehicles and Equipment is due to a conversion error which resulted in a negative book value on a piece of equipment which had been fully depreciated. Total Business-type Activities $ 135,364,596 $ 7,156,248 $ (10,678,344) $ (990,992) 130,851,508 Capital Assets, not being depreciated 13,903,175 4,875,944 10,623,102 982,239 7,173,778 Capital Assets, being depreciated, net 121,461,421 2,280,304 (55,242) 8,753 123,677,730 Total $ 135,364,596 $ 7,156,248 $ 10,567,860 $ 990,992 $ 130,851,508 General government $ 28,293 Central services 38,787 Public safety 550,855 Public works 2,565,026 Library and recreation 660,449 Financial administration 28,509 Total depreciation expense - governmental activities $ 3,871,919 80 114

2021 Annual Comprehensive Financial Report for the City of Dover, Delaware Financial Section – Part C – Notes to the Basic Financial Statements Item 3. 5. LONG -TERM OBLIGATIONS A. Summary of Bonded Indebtedness by Issue Original Remaining Interest Maturity Arbitrage Purpose Governmental Activities 2019 General Obligation Bonds $ 5,700,000 $ 5,035,524 2.39% 7/18/19 - 6/30/29 No Refund General Obligation Bonds Series 2012 and Series 2014 A, which funded public safety equipment and library, storm water and street infrastructure projects 2021 General Obligation Bonds $ 1,563,000 $ 1,563,000 1.69% 7/15/21 - 6/15/31 No Provide funds to pay a portion of the costs of: Chiller replacement and cooling tower/pump replacement for Police Department, replace entire HVAC system at City Hall, replace HVAC system and all components at the Warehouse building and pay costs of issuance. Business Type Activities Water Bonds 2010 State of Delaware - Revolving 2,404,017 1,349,320 2.47% 4/1/12 - 10/1/30 No Water quality improvements and main Loan Fund - Municipal Revenue replacements 2013 Revenue Bonds 4,295,463 2,598,317 3.58% 7/1/14 - 7/1/33 Yes Water and Wastewater capital project financing, refund 2003 Series WWW bonds 2018 State of Delaware - Revolving 4,000,000 3,825,038 2.00% 12/1/20 - 6/1/39 No Water Treatment Plant Improvements Loan Fund - Municipal Revenue Wastewater Bonds 2009 State of Delaware - Revolving 5,581,059 3,272,140 2.00% 12/1/12 - 12/1/31 No Pump station replacements/upgrades and Loan Fund - Municipal Revenue sanitary sewer main relining 2011 State of Delaware - Revolving 765,060 504,467 2.00% 6/1/12 - 12/1/31 No Pump station replacements/upgrades and Loan Fund - Municipal Revenue sanitary sewer main relining 2013 Revenue Bonds 1,829,538 1,106,683 3.58% 7/1/14 - 7/1/33 Yes Water and Wastewater capital project financing, refund 2003 Series WWW bonds 2018 State of Delaware - Revolving 881,356 861,597 2.00% 10/1/20 - 4/1/39 No Replacement of 3 Pump Stations: Delaware Loan Fund - Municipal Revenue Tech, Walker Woods and Silver Lake 2020 State of Delaware - Revolving 732,200 483,750 2.00% 20 year term once No Puncheon Run pump station grit removal system Loan Fund - Municipal Revenue the project is replacement complete (Coverage ratio on Water/Wastewater Bonds requires net revenues to be at least 1.2 times the maximum annual debt service) Electric Revenue Bonds 2018 Revenue Bonds $ 15,700,000 $ 14,265,000 3 - 5% 7/1/19 - 7/1/33 Yes Refund Electric Revenue Bonds Series 2008, which funded system expansion & upgrades (Coverage ratio on Electric Bonds requires net revenues to be at least 1.25 times the maximum annual debt service) 81 115

2021 Annual Comprehensive Financial Report for the City of Dover, Delaware Financial Section – Part C – Notes to the Basic Financial Statements Item 3. B. Status as of June 30, 2021 – General Obligation Bonds Long-term indebtedness of the City of Dover consists of Series 2019 General Obligation Bonds totaling $5,035,524 and Series 2021 General Obligation Bonds totaling $1,563,000 for a grand total of $6,598,524 in outstanding bonds. The total General Obligation Bonds outstanding amount includes $487,315 payable within one year. C. Change in Long-Term Debt The following tables summarize the debt transactions for the year ended June 30, 2021: General Long-Term Debt Payable within Item Balance 7/1/20 Additions Reductions Balance 6/30/21 One Year Police Officer Separation Agrmt $ 75,000 $ - $ 37,500 $ 37,500 $ 37,500 Compensated Absences 2,522,137 1,537,746 1,380,861 2,679,022 1,356,828 General Obligation Bonds 5,371,284 1,563,000 335,760 6,598,524 487,315 Net OPEB Liability 17,182,610 - 11,113,763 6,068,847 - Net Pension Liability 16,541,272 - 10,699,493 5,841,779 - Sub-total of General Long-Term Debt $ 41,692,303 $ 3,100,746 $ 23,567,377 $ 21,225,672 $ 1,881,643 Enterprise Funds Debt – Water and Wastewater Fund WATER FUND Payable within Item Balance 7/1/20 Additions Reductions Balance 6/30/21 One Year Compensated Absences $ 179,202 $ 112,664 $ 86,464 $ 205,402 $ 81,368 Revenue Bonds-Water 2,861,304 - 262,987 2,598,317 270,001 State of Delaware Municipal Revenue Bond - Water 5,472,966 - 298,608 5,174,358 305,374 Net OPEB Liability 848,581 - 803,914 44,667 - Net Pension Liability 2,386,355 - 1,439,095 947,260 - Sub-total of Water Fund $ 11,748,408 $ 112,664 $ 2,891,068 $ 8,970,004 $ 656,743 WASTEWATER FUND Payable within Item Balance 7/1/20 Additions Reductions Balance 6/30/21 One Year Compensated Absences $ 55,604 $ 48,800 $ 20,150 $ 84,254 $ 42,648 Revenue Bonds-Water 1,218,696 - 112,013 1,106,683 114,999 State of Delaware Municipal Revenue Bond - Wastewater 4,783,162 674,936 336,143 5,121,954 373,429 Net OPEB Liability 479,892 - 437,217 42,675 - Net Pension Liability 1,463,537 - 512,735 950,802 - Sub-total of Wastewater $ 8,000,891 $ 723,736 $ 1,418,258 $ 7,306,368 $ 531,076 82 116

2021 Annual Comprehensive Financial Report for the City of Dover, Delaware Financial Section – Part C – Notes to the Basic Financial Statements Item 3. State of Delaware Water Pollution Control Revolving Fund (WPCRF) Loan The City had one Wastewater loan that is still in the process of being drawn down because the related projects are in the construction stage. Loan outstanding as of June 30, 2021 was: Loan # 12000102 Interest Rate 2.00% Maximum Loan Amount $732,200 Outstanding as of June 30, 2021 $483,750 The City’s repayment obligation is secured by a pledge of net operating revenue of the water and wastewater system. Upon completion of each project, semi-annual payments of principal and interest shall be payable in an amount sufficient to amortize the outstanding principal balance of the loan over a twenty-year term. Enterprise Funds Debt – Electric Revenue Fund ELECTRIC REVENUE FUND Payable within Item Balance 7/1/20 Additions Reductions Balance 6/30/21 One Year Compensated Absences $ 555,830 $ 256,326 $ 362,602 $ 449,554 $ 232,449 Revenue Bonds 15,050,000 - 785,000 14,265,000 820,000 Bond Premium 1,065,093 - 75,306 989,787 82,482 Net OPEB Liability 2,137,379 - 1,748,866 388,513 - Net Pension Liability 7,538,637 - 3,197,735 4,340,902 - Asset Retirement Obligation 11,915,849 - - 11,915,849 - Sub-total of Electric Revenue Fund 38,262,788 256,326 6,169,509 32,349,605 1,134,931 Sub-total of Enterprise Fund Debt 58,012,087 1,092,726 10,478,835 48,625,977 2,322,750 Grand Totals of Long-Term Debt $ 99,704,390 $ 4,193,472 $ 34,046,212 $ 69,851,649 $ 4,204,393 The City does not receive reimbursement for debt service from any other governmental units. The City does not have any special assessment debt or defeased bonds as of June 30, 2021. In previous years, the City has used General Fund Revenues to liquidate Net Pension and Net OPEB Liabilities in the General Fund. 83 117

2021 Annual Comprehensive Financial Report for the City of Dover, Delaware Financial Section – Part C – Notes to the Basic Financial Statements Item 3. D. Debt Service Requirements The following are the debt service requirements to maturity on the City's general obligation bonds and revenue bonds. Governmental Activities: 2019 General Obligation Bonds 2021 General Obligation Bonds Total General Fiscal Fund Debt Service Year Principal Interest Principal Interest 2022 342,624 118,222 144,691 25,294 630,831 2023 349,632 109,842 147,156 22,830 629,460 2024 356,556 101,565 149,662 22,830 630,613 2025 364,092 92,569 152,211 17,774 626,646 2026 371,544 83,664 154,804 15,182 625,194 2027 379,140 74,576 157,440 12,545 623,701 2028 386,760 65,478 160,122 9,864 622,224 2029 2,485,176 55,843 162,849 7,136 2,711,004 2030 - - 165,622 4,363 169,985 2031 - - 168,443 1,542 169,985 Total $ 5,035,524 $ 701,759 $ 1,563,000 $ 139,360 $ 7,099,673 Business-type Activities Water, Wastewater and Electric Revenue Funds 2009 Municipal Revenue 2010 Municipal Revenue 2011 Municipal Revenue Bonds (Wastewater) Bonds (Water) Bonds (Wastewater) Fiscal Year Principal Interest Principal Interest Principal Interest 2022 283,013 64,035 126,895 34,395 40,318 17,806 2023 288,702 58,346 130,228 31,061 41,783 16,341 2024 294,505 52,543 133,649 27,640 43,302 14,823 2025 300,424 46,624 137,160 24,129 44,875 13,250 2026 306,463 40,585 140,764 20,526 46,505 11,619 2027 312,623 34,425 144,461 16,828 48,195 9,930 2028 318,906 28,142 148,257 13,033 49,946 8,178 2029 325,316 21,732 152,151 9,138 51,761 6,364 2030 331,855 15,193 156,148 5,141 53,642 4,483 2031 338,526 8,522 79,607 1,039 55,592 2,534 2032 171,807 1,718 - - 28,548 514 Total $ 3,272,140 $ 371,865 $ 1,349,320 $ 182,930 $ 504,467 $ 105,842 (Continued) 84 118

2021 Annual Comprehensive Financial Report for the City of Dover, Delaware Financial Section – Part C – Notes to the Basic Financial Statements Item 3. Business-type Activities (Continued) Water, Wastewater and Electric Revenue Funds 2013 Revenue Bonds 2018 Municipal Revenue 2018 Municipal Revenue 2020 Municipal Revenue 2018 Revenue Bonds Total Fiscal Water and Wastewater Loan (Wastewater) Loan (Water) Loan (Wastewater) Electric Business-Type Year Principal Interest Principal Interest Principal Interest Principal Interest Principal Interest Activities 2022 385,000 124,069 40,203 17,032 178,479 46,766 9,895 4,838 820,000 553,450 2,746,193 2023 395,000 112,369 41,011 16,224 182,067 44,168 20,089 9,377 865,000 511,325 2,763,091 2024 410,000 100,294 41,835 15,400 185,726 41,570 20,492 8,973 910,000 466,950 2,767,702 2025 215,000 90,919 42,676 14,559 189,459 38,971 20,904 8,561 955,000 420,325 2,562,836 2026 220,000 84,256 43,534 13,701 193,267 36,373 21,325 8,141 1,005,000 371,325 2,563,384 2027 225,000 77,106 44,409 12,826 197,152 33,775 21,753 7,713 1,055,000 319,825 2,561,020 2028 235,000 69,281 45,301 11,933 201,115 31,177 22,190 7,275 1,110,000 265,700 2,565,435 2029 245,000 60,269 46,212 11,023 205,157 28,579 22,636 6,829 1,160,000 214,750 2,566,917 2030 255,000 50,269 47,141 10,094 209,281 25,981 23,091 6,374 1,200,000 173,550 2,567,243 2031 265,000 39,869 48,088 9,146 213,487 23,383 23,556 5,910 1,240,000 136,950 2,491,210 2032 275,000 29,069 49,055 8,180 217,779 20,785 24,029 5,437 1,275,000 99,225 2,206,145 2033 285,000 17,869 50,041 7,194 222,156 18,187 24,512 4,954 1,315,000 60,375 2,005,288 2034 295,000 6,084 51,047 6,188 226,621 15,589 25,005 4,461 1,355,000 20,325 2,005,320 2035 - - 52,073 5,162 231,176 12,990 25,507 3,959 - - 330,866 2036 - - 53,120 4,115 235,823 10,392 26,020 3,446 - - 332,916 2037 - - 54,187 3,047 240,563 7,794 26,543 2,923 - - 335,057 2038 - - 55,276 1,958 245,398 5,196 27,076 2,389 - - 337,294 2039 - - 56,388 847 250,332 2,598 27,621 1,845 - - 339,631 2040 - - - - - - 28,176 1,290 - - 29,466 2041 - - - - - - 28,742 724 - - 29,466 2042 - - - - - - 14,588 146 - - 14,734 Total $ 3,705,000 $ 861,723 $ 861,597 $ 168,628 $ 3,825,038 $ 444,274 $ 483,750 $ 103,406 $ 14,265,000 $ 3,614,075 $34,047,549 85 119

2021 Annual Comprehensive Financial Report for the City of Dover, Delaware Financial Section – Part C – Notes to the Basic Financial Statements Item 3. E. Certain Asset Retirement Obligation The City implemented GASB Statement No. 83 Certain Asset Retirement Obligation (ARO) during the fiscal year ended June 30, 2019. An ARO is a legally enforceable liability associated with the retirement of a tangible asset. The McKee Run Generating Station is an electric generating facility owned and operated by the City since 1972 and was shut down on May 31, 2021. A legal obligation exists for the City to perform future retirement activities for the decommissioning of the McKee Run Generating Station, as the site contains hazardous and other materials that require special handling, based upon Federal Regulations and the Delaware Department of Natural Resources and Environmental Control (DNREC). The City engaged a specialist to estimate the cost of decommissioning the station, and accordingly recognized a liability of $11,915,849, and deferred outflow of resources of $486,361 which was fully amortized as of June 30, 2021. The City of Dover has commenced the decommissioning of McKee Run Generating Station. As of May 31, 2021, all fuel, air, and oil connections to the Unit #3 generator were disconnected rendering the unit officially inoperative and out of service. The City has retained Advanced Geo Services to serve as the Hazardous Substance Cleanup Act (HSCA) contractor that will draft environmental sampling and cleanup plan that will be used to draft a future RFP for demolition. As of June 30, 2021 there have been no payments in relation to the Asset Retirement Obligation. There were no legally required funding or assurance provisions and there were no assets restricted for payment as of June 30, 2021. 6. RESTRICTED NET POSITION In the government-wide financial statements, the restricted net position of the governmental activities and business type activities are as follows: Governmental Activities Grants-capital projects This represents the State DOT grant $ 113,835 reported in the non-major special revenue funds. Grants-public safety These represent the Police grants, ERLSP 186,966 grant and Substance Abuse Prevention grant in the special revenue type funds. Other Purposes These represent all other funds reported in 130,546 the special revenue type, except the grants reserved for capital construction and public safety. Also included is the interest from an endowment from Mary Elizabeth Paton and the verizon reserve. Total Restricted Net Position $ 431,347 Business Type Activities Net restricted position for construction purposes - expendable Water and Wastewater Restrictions on investments $ 8,838,838 imposed by bond covenants Electric Restrictions on investments 65,251,423 imposed by bond covenants Total Restricted Net Position $ 74,090,261 86 120

2021 Annual Comprehensive Financial Report for the City of Dover, Delaware Financial Section – Part C – Notes to the Basic Financial Statements Item 3. 7. FUND BALANCES & NET POSITION In the governmental fund financial statements, fund balances are reported based on a hierarchy of constraints on the specific purposes for which the funds can be spent. Non-spendable fund balances represent items that are not in spendable form and not expected to be converted to cash. This criterion also applies to the corpus of permanent funds, which would include the Mary Elizabeth Paton library endowment. Restricted fund balances represent amounts that have externally imposed restrictions by creditors, grantors, enabling legislation or laws and regulations of other governments. The fund balances of the City’s grant funds fall into this category, as well as a couple of accounts that have contractual restrictions imposed by a third party. Committed fund balances represent amounts that can be used only for specific purposes pursuant to constraints imposed by formal action of City Council through a motion or an adopted city ordinance. These amounts cannot be used for any other purpose unless the government removes or changes the specified use by taking the same type of action to which it previously committed the amount. Assigned fund balances represent amounts constrained by the City’s intent to be used for specific purposes. These amounts represent the City’s capital asset appropriations. The constraints placed on assigned fund balances are implemented through internal processes such as a budget ordinance or motion of City Council. Therefore, assigned fund balances do not have the same restrictive nature as a restricted fund balance. Unassigned fund balance is the residual amount that has not met the criteria for the previously mentioned classifications. The unassigned fund balance is available for expenditures as they are incurred. The General Fund is the only fund that reports a positive unassigned fund balance amount. However, in governmental funds other than the General Fund, if expenditures incurred for specific purposes exceed the amounts that are restricted, committed, or assigned to those purposes, it may be necessary to report a negative unassigned fund balance in that fund. 87 121

2021 Annual Comprehensive Financial Report for the City of Dover, Delaware Financial Section – Part C – Notes to the Basic Financial Statements Item 3. The composition of the City fund balances as of June 30, 2021 follows: Other General Governmental Fund Funds Total Fund balances: Nonspendable: Inventory & Prepaids $ 95,545 $ - $ 95,545 Patronage Stock 16,594 - 16,594 Library Endowment 5,000 - 5,000 Subtotal Nonspendable: 117,139 - 117,139 Restricted for: Library Endowment Interest 2,502 - 2,502 Verizon cable franchise 51,394 - 51,394 Highway resurfacing - 113,835 113,835 CDBG - 1,141 1,141 Substance Abuse Prevention - 108,290 108,290 Library Grants - 75,509 75,509 Police Grants - 78,676 78,676 Subtotal Restricted for: 53,896 377,451 431,347 Committed to: Contingency 727,467 - 727,467 Parkland 1,384,125 - 1,384,125 Subtotal Committed to: 2,111,592 - 2,111,592 Assigned to: Capital Projects 6,540,786 - 6,540,786 Unassigned 10,316,753 - 10,316,753 Total fund balances $ 19,140,166 $ 377,451 $ 19,517,617 As noted in the Introductory section of this report (page 8), the City has established the “City of Dover, Delaware Financial Policies” booklet, which is a standardized set of principles managed by the Finance Department to ensure that the City follows the minimum fund balance policies. 8. PROPERTY TAXES Property taxes are levied under the authority of the City Charter on all real property located within the City limits. The City Assessor oversees the property assessments, and the City Council levies the property tax rate. The following table provides important dates with reference to property taxes. Beginning of fiscal year for taxes July 1 Tax rate levied 2nd Council Meeting in June Taxes billed July 1 Taxes due and payable at par July 31 Penalty of one and one-half percent starts August 1 Lien established on property for property taxes July 1 Tax sales of property with unpaid taxes 2 years from date of billing As of June 30, 2021, there were no material delinquent taxes. 88 122

2021 Annual Comprehensive Financial Report for the City of Dover, Delaware Financial Section – Part C – Notes to the Basic Financial Statements Item 3. 9. INTERFUND RECEIVABLES, PAYABLES AND TRANSFERS The composition of interfund balances as of June 30, 2021 follows: A. Due to/from other funds – Charges and Allocations Receivable Fund Payable Fund Amount General Fund Non-Major Governmental Funds $ 392,465 Water Fund 129,785 Wastewater Fund 86,733 Electric Revenue Fund 472,359 1,081,342 Water Fund General Fund 3 Wastewater Fund General Fund 3 Non-Major Governmental Funds General Fund 187,019 Total $ 1,081,348 B. Temporary Advances Receivable Fund Payable Fund Amount General Fund CDBG Fund $ 220,000 The outstanding balances between funds result mainly from the time lag between the dates that (1) interfund goods and services are provided or reimbursable expenditures occur, (2) transactions are recorded in the accounting system, and (3) payments between funds are made. C. Interfund Transfers Transfers In Non-Major Transfers Out General Fund Governmental Funds Total Non-Major Governmental Funds $ 6,256,573 $ - $ 6,256,573 Water/ Wastewater Fund 1,000,000 - 1,000,000 Electric Revenue Fund 10,000,000 - 10,000,000 General Fund - 1,067 1,067 Total $ 17,256,573 $ 1,067 $ 17,257,640 Transfers are generally made to provide operating capital or debt service subsidies to the receiving fund in accordance with City policy. 89 123

2021 Annual Comprehensive Financial Report for the City of Dover, Delaware Financial Section – Part C – Notes to the Basic Financial Statements Item 3. 10. RENTAL INCOME The City is the lessor in two active lease agreements related to its Garrison Oak Business & Technology Center that result in miscellaneous revenue reported in the General Fund. The first lease is with LS Power – White Oak Solar Energy LLC, which generated $69,546 in rental income, and the second lease is with Garrison Energy Center which generated $35,292 in rental income. The City’s Electric Revenue Fund owns a professional office building which houses the City’s Customer Service, Finance, Information Technology, Human Resources, and Public Works Departments. Lease revenue is $81,262 in the Electric Revenue Fund consisting of substation rental of $30,000 and pole attachment rentals of $51,262. The City maintains several water tower leases for a group of telecommunications companies. The transactions are recorded as revenue in the Water Fund and totaled $529,789 in the fiscal year ended June 30, 2021. 11. MATERIAL COMMITMENTS A. The City entered into a long-term Renewable Generation Unit Power Purchase Agreement with FPS Raceway Solar, LLC effective August 24, 2020. FPS Raceway Solar, LLC will supply certain energy, REC's and capacity generated by the electric generation facility to be located in Harrington, DE. Once the project is completed it will provide power to the City of Dover for a period of 25 years. B. The City is the guarantor on two loans in the original amounts of $635,300 & $757,900 for the Dover Fire Department: a separate entity from the City of Dover. The City also budgets financial contributions to assist the volunteer fire company with the acquisition of firefighting apparatus and maintenance of the building and other necessary equipment. The current fiscal year includes $32,403 in expenditures for the emergency mold remediation in Station #2, $41,673 for Squad #1 a 2020 Pierce enforcer rescue engine, and $77,672 for Engine No. 5. C. The City entered a three-year management contract with The Energy Authority effective July 1, 2016 to provide a market-based approach for power supply management. The City has extended the contract through June 30, 2022. The Energy Authority manages energy purchases and utilizes the City’s generating assets to provide a level of rate stability and to mitigate the effects of volatility in the energy markets. D. The City also entered a management contract with North American Energy Services (NAES) to operate and maintain the generating assets of the electric utility in May 2006. The City extended the contract with NAES through September 30, 2021. The City has incorporated the budgets and financial activity of the generating assets into its procedures used for all other divisions of the electric utility. These procedures include a line-item budget and adherence to City policies. All personnel are employed by NAES and personnel costs are billed to the City bi- weekly. Any capital improvements are included in the City’s capital improvement plan. The contract also provides for a monthly management fee and a performance incentive based on budget and plant performance. The cost estimate for annual management fees and incentives totals $737,500 in fiscal year 2021 and is included in the plant operating budget. E. The City is the guarantor on two $1.3 million loans held by the Downtown Dover Partnership. The loans are secured by two parcels in the downtown business district that the Downtown Dover Partnership is marketing for its redevelopment initiative. The principal and interest on both loans is paid monthly from rental receipts the Partnership receives from its current tenants on the properties. 90 124

2021 Annual Comprehensive Financial Report for the City of Dover, Delaware Financial Section – Part C – Notes to the Basic Financial Statements Item 3. F. The City owes $37,500 to a former employee of the City due to a separation agreement. The former employee is owed this money in the next year. G. There are no significant encumbered amounts where the resources have already been restricted. 12. FORWARD CONTRACTS Pursuant to the July 1, 2011 Energy Management Agreement between the City and The Energy Authority (TEA), the City has formed an Executive Risk Management Committee (ERMC). The ERMC has adopted a Governing Policy for Energy Commodity Risk Management (Policy) aimed at addressing the energy commodity risks and the Procedures and Controls Manual for Energy Commodity Risk Management (Procedures Manual). The Procedures Manual further describes the risk management philosophy under which TEA, the City’s designated provider of energy risk management services conducts its activities. The Procedures Manual authorizes TEA to enter into physical forward transactions which shall be governed by Edison Electric Institute (EEI), North American Energy Standards Board (NAESB), or similar agreements with counterparties approved by the City. These agreements will enable the City to hedge the forward price of purchased power, natural gas or fuel oil for delivery as needed to meet its load requirements. No speculative transactions for volumes in excess of forecasted power and fuel needs are permitted. TEA also provides advisory services to the City to determine the extent to which financial hedges would mitigate market and credit risk to the benefit of the City. These contracts meet the definition of a derivative instrument as defined by GASB Statement No. 53, Accounting and Reporting for Derivative Instruments (GASB 53). However, these contracts meet the normal purchases and sales exemption of GASB 53 as the City intends to use the physical commodity in its normal utility operations to supply energy to its customers. Accordingly, these contracts are not within the scope of GASB 53 and are not recorded on the City’s Statement of Net Position. Under the Procedures manual the City will not extend credit to any potential counterparty that has a credit rating below investment grade (defined as BBB as rated by S&P Global Ratings or Baa2 as rated by Moody’s Investors Service). Any counterparty that is unrated by either S&P or Moody’s must be approved by the ERMC prior to the execution of any trading activities. Credit risk is mitigated using collateral thresholds, credit limits, maximum nominal exposure and term limitations. A collateral threshold is the amount of unsecured credit granted to the counterparty. Unsecured credit exposure includes amounts owed by the counterparty, whether billed or not, and the marked-to-market differences in value of any collateral held. Any net exposure above the collateral threshold will require the posting of collateral by the counterparty. Collateral thresholds, term limitations and credit exposure limits are subject to maximums as established by the ERMC. 91 125

2021 Annual Comprehensive Financial Report for the City of Dover, Delaware Financial Section – Part C – Notes to the Basic Financial Statements Item 3. A summary of the contracts outstanding as of June 30, 2021 are as follows: Counterparty Credit Risk (in 1,000’s) Maximum Counterparty Amount of Loss Counterparty Line Counterparty or Guarantor due to Credit Risk Collateral Description Threshold Availability Credit Rating w/o Respect to Collateral ($) AEP Energy Partners, Inc. BBB+ $10,000 $10,000 $0 No Collateral if exposure under specified threshold Barclays Bank, PLC AA $15,000 $15,000 $0 No Collateral if exposure under specified threshold BP Energy Company A- $15,000 $15,000 $0 No Collateral if exposure under specified threshold Calpine Energy Services, L.P. No threshold $535 ($535) No Specified threshold Citigroup Energy, Inc. BBB+ $7,000 $7,000 $0 $10,000 guaranty from Citigroup Global Markets Holdings, threshold is $7,000 Conectiv Energy Supply, Inc. NR No threshold $0 $0 No Specified threshold EDF Trading North America, LLC BBB $18,000 $18,000 $0 Threshold is $18 million unless guarantor's credit rating falls below Baa3 Exelon Generation Company, LLC BBB $20,000 $20,000 $0 No Collateral if exposure under specified threshold Constellation Energy Services, Inc. NR No threshold $0 $0 No Specified threshold Macquarie Energy, LLC A $15,000 $15,000 $0 Up to $15,000 is guaranteed by Macquarie Bank Limited Morgan Stanley Capital Group Inc. BBB+ $10,000 $8,320 $1,680 Unlimited guaranty from Morgan Stanley, threshold set by table in contract Guaranty from NextEra Energy Capital Holdings, threshold set by table in NextEra Energy Marketing, LLC. BBB+ $10,000 $5,465 $4,535 contract NJR Energy Services Company No threshold $0 $0 No Specified threshold PSEG Energy Resources & Trade, BBB $5,000 $4,802 $198 $5,000 guaranty from PSEG Power LLC LLC 92 126

2021 Annual Comprehensive Financial Report for the City of Dover, Delaware Financial Section – Part C – Notes to the Basic Financial Statements Item 3. 13. INSURANCE A. Health Insurance – State of Delaware The City participates in the State of Delaware Health Insurance Program. The State offers four health plan options. The administration of benefits is coordinated with Aetna and Highmark Delaware. Pre- determined premiums consisting of City and employee contributions are subsequently paid to the State of Delaware. B. Workers’ Compensation Fund – Self-Insurance On July 1, 1990, the City began self-insuring its Workers’ Compensation insurance. For this purpose, the City has established a separate fund. Claims are processed and administered by a third-party administrator. The City manages the revenue and expenditures in this fund and maintains all records. The City maintains a fund balance reserve to cover any claims incurred but not reported. AMI Risk Consultants completed an updated valuation in fiscal year 2019. As of June 30, 2021, $288,538 is reserved for open claims in this fund. An appropriate umbrella policy for the excess coverage has been purchased and is in effect as of June 30, 2021. Workers’ Compensation activity is recorded in the Workers’ Compensation Fund as follows: 2021 2020 Claims payable, beginning of year $ 449,515 $ 490,800 Claims incurred 96,278 49,300 Payment of claims (257,255) (90,585) Claims payable, end of year $ 288,538 $ 449,515 C. Other than Health or Workers’ Compensation Insurance The City purchases commercial insurance policies to cover risks not insured through self-insurance funds. The City has designated a contingency account to provide for uninsured losses (See Note 7). There have been no significant reductions or settlements exceeding coverage in the past five fiscal years. 14. COMPENSATED ABSENCES The City grants a specific number of vacation days with pay to its employees. Upon termination or retirement, an employee is paid for accumulated vacation days. The City also grants one paid sick day per month to all employees, except for employees covered by the International Brotherhood of Electric Workers (IBEW) contract. The IBEW employees are granted eleven sick days per year. 93 127

2021 Annual Comprehensive Financial Report for the City of Dover, Delaware Financial Section – Part C – Notes to the Basic Financial Statements Item 3. The City of Dover follows a terminal leave policy which varies with each of the four labor unions as well as the non-bargaining group. The maximum accumulated sick days paid upon retirement is 150 days for 25 years of service. No accrued sick leave is paid when an employee is terminated. In the government-wide and proprietary fund financial statements, unpaid compensated absences are recorded as a liability as the vested employees' benefits accrue, to the extent it is probable that the employee will be paid for comp time, sick and vacation benefits at retirement. In governmental funds, compensated absences are recorded as expenditures as payments become due; accordingly, no liability is recorded in the Governmental Funds statement. Typically, the General Fund has been used in prior years to liquidate the liability for compensated absences recorded in governmental activities. 15. OTHER POST-EMPLOYMENT BENEFITS Plan Description On May 11, 2009, the City of Dover Other Post-Employment Benefits Trust (OPEB Trust) was established pursuant to Section 115 of the Internal Revenue Code. Policy for and management of the OPEB benefits provided to retirees are the responsibility of the City of Dover. No stand-alone financial report is issued for the OPEB Trust. The City of Dover OPEB Plan is a post-retirement employee benefit program established for the purpose of funding retiree health care as provided for in Chapter 80, Article IV, Division 5 of the Code of Ordinances. The OPEB Plan is a single employer defined benefit plan. The OPEB Plan provides retirement medical coverage to pensioners and their eligible dependents in the City of Dover defined benefit and defined contribution pension plans as well as the State of Delaware’s Police defined benefit plan. Plan Administration Management of the plan investments are fully vested with the City of Dover OPEB Board as established in the City Code, which consists of five members - two Council members appointed by the Council President, the City Manager, the Controller/Treasurer, and the Human Resources Director. The City Manager, the Controller/Treasurer, and the Human Resources Director serve as ex-officio members. Milliman of Albany, New York provides asset management advisory and consulting services to the Board. The City purchases health insurance from the State of Delaware through a cooperative purchasing arrangement permitted by State Code. The State Office of Benefits provides the City with the medical insurance premiums by type of coverage and carrier during the budget cycle each year. The City also pays a five percent risk premium and contract administration fee of $2.70 for each contract in addition to the premium. Any premiums paid over or under the benefits paid out for City employees revert to the State. Membership of the plan consisted of the following on June 30, 2021: Retirees and beneficiaries receiving benefits 284 Terminated plan members entitled to but not yet receiving the benefits 10 Active plan members 310 Total 604 94 128

2021 Annual Comprehensive Financial Report for the City of Dover, Delaware Financial Section – Part C – Notes to the Basic Financial Statements Item 3. Substantially all City employees become eligible for post-retirement benefits if they reach retirement age while working for the City. The costs of providing these benefits are shared between the City and the retired employee. Employee Benefits and Contributions The City maintains contracts with each of the following collective bargaining units. • The International Brotherhood of Electric Workers (IBEW) union contract period is July 1, 2020 through June 30, 2023. • The American Federation of State, County, and Municipal Employees (AFSCME), Council 81 contract period is July 1, 2020 through June 30, 2023. • The Fraternal Order of Police Lodge #15 (FOP) union contract period is July 1, 2021 through June 30, 2024. • The Dover Organization of Employees (DOE) union contract period is July 1, 2021 through June 30, 2024. The eligibility provisions for early retirement are as follows: SUMMARY OF PRINCIPAL PLAN PROVISIONS Benefits for Civilians: A. Covered Groups: Full-time DOE (formerly IUE), IBEW, AFSCME and non-union employees and their dependents are covered. B. Eligibility: Satisfaction of either of the following eligibility requirements: 1. Unreduced Retirement: Attainment of the earlier of the following conditions: a. Later of attainment of age 65 and completion of 10 years of service. b. If hired prior to May 1, 1994, later of attainment of age 50 and completion of 20 years of service. c. If hired prior to May 1, 1994, completion of 25 years of service. d. If hired on or after May 1, 1994, later of attainment of age 55 and completion of 80 points (age plus service). 2. Reduced Retirement: For DOE, AFSCME and non-union members hired prior to July 1, 1994, attainment of age 55 and completion of 10 years of service. Other members who meet this condition have the option to pay 100% of the premiums for coverage. 3. Vested Termination: For DOE, AFSCME and non-union members hired prior to July 1, 1994, completion of 10 years of service. Coverage commences upon attainment of age 65. Coverage is not available to other members. 4. Active Death: Surviving spouses are eligible for 50% of monthly payment of members eligible or not yet eligible for an unreduced pension upon death or for DOE and non-union members hired prior to July 1, 1994, if member completed 10 years of service. (Continued) 95 129

2021 Annual Comprehensive Financial Report for the City of Dover, Delaware Financial Section – Part C – Notes to the Basic Financial Statements Item 3. (Continued) SUMMARY OF PRINCIPAL PLAN PROVISIONS C. Premium Cost Sharing: Cost-sharing varies by employee group, date of retirement and/or date of hire as follows: 1. Non-Union Employees: a. None if retired prior to July 1, 1991 b. 0% for individual coverage and 25% for spouse coverage if retired on or after July 1, 1991 and prior to July 1, 2012 c. 15% for individual and spouse coverage if retired on or after July 1, 2012 2. DOE Employees: a. None if retired prior to September 1, 1991 b. 0% for individual coverage and 25% for spouse coverage if retired on or after September 1, 1991 and prior to June 1, 2013 c. 15% for individual and spouse coverage if hired prior to December 22, 2015, upon direct retirement with an unreduced pension d. 20% for individual coverage if hired on or after December 22, 2015, upon direct retirement with an unreduced pension. The retiree will have the option to purchase dependent coverage under the City’s group rate plan at full cost to the employee/retiree. 3. IBEW Employees: a. 0% for individual coverage and 25% for spouse coverage if hired prior July 1, 1986 b. 0% for individual coverage and 100% for spouse coverage if hired on or after July 1, 1986 and prior to July 1, 2014 c. 20% for individual coverage and 100% for spouse coverage if hired on or after July 1, 2014 4. AFSCME Employees: a. 0% for individual coverage and 25% for spouse coverage if retire prior to July 1, 2015 b. 15% for individual and spouse coverage if hired prior to May 20, 2014 and retire on or after July 1, 2015 c. 20% for individual coverage and 100% for spouse coverage if hired on or after May 20, 2014 D. Benefit Duration: Retiree coverage is provided for lifetime. Spouse coverage is provided for the spouse’s lifetime. E. Medicare Part B Reimbursement: Eligible retirees receive reimbursement of the Medicare Part B premium. The Medicare Part B standard premium was $148.50 for 2021; for 2020, the standard premium was $144.60. Spouses are not eligible for the reimbursement. Eligible retirees are: 1. Non-union and AFSCME employees who were hired prior to July 28, 2009. 2. IBEW employees who retired prior to July 1, 2009. 3. DOE employees who retired prior to January 31, 2010. 96 130

2021 Annual Comprehensive Financial Report for the City of Dover, Delaware Financial Section – Part C – Notes to the Basic Financial Statements Item 3. Benefits for Police Officers: A. Covered Groups: Full-time FOP employees and their dependents are covered. Only provisions for members hired on or after September 1, 1982 are shown. B. Eligibility: Satisfaction of either of the following eligibility requirements: 1. Unreduced Retirement: Attainment of the earlier of the following conditions: a. Later of attainment of age 62 and completion of 10 years of service. b. Completion of 20 years of service. c. Later of completion of 10 years of service and 75 points (age plus service). 2. Reduced Retirement: Not applicable. 3. Vested Termination: None. 4. Active Death: Surviving spouses of members eligible for an unreduced pension upon death. C. Premium Cost Sharing: 1. None if retired prior to July 1, 1991 2. 0% for individual coverage and 25% for spouse coverage if retired on or after July 1, 1991 and prior to July 1, 2012 3. 15% for individual and spouse coverage if retire on or after July 1, 2012. 4. Employees hired on or after October 9, 2015, contribute 20% for individual coverage. The retiree will have the option to purchase dependent coverage under the City’s group rate plan at full cost to the employee/retiree. D. Benefit Duration: Retiree coverage is provided for lifetime. Spouse coverage is provided for the spouse’s lifetime. E. Medicare Part B Reimbursement: Eligible retirees receive reimbursement of the Medicare Part B premium. The Medicare Part B standard premium was $148.50 for 2021; for 2020, the standard premium was $144.60. Spouses are not eligible for the reimbursement. Eligible retirees are members who retired prior to September 30, 2006. Employer Contributions: The City of Dover funds the other post-employment benefits for current retirees on a pay-as-you-go basis along with funding for future benefits at a rate that is approved in the annual budget, but not actuarially determined. Additional funding has also been provided on an ad hoc basis. The employer contributions towards retiree health care premiums this fiscal year are as follows: General Government $ 2,301,791 Water and Wastewater Fund 308,983 Electric Revenue Fund 893,114 Total Contributions $ 3,503,888 97 131

2021 Annual Comprehensive Financial Report for the City of Dover, Delaware Financial Section – Part C – Notes to the Basic Financial Statements Item 3. Transactions are recorded in the OPEB Trust for the payment of administrative and investment expenses and financed through investment earnings. City appropriations and other employer contributions for health care are recorded in the OPEB Trust. The OPEB Board of Trustees is responsible for the management of the trust investments. Contributions The contribution rates for the employer are established annually by the budgeting process of the City. Those rates include an employer contribution based on projected pay-as-you-go financing requirements as a percent of premiums, with an additional amount to prefund benefits, which is not actuarially determined. For the year ended June 30, 2021, the City’s average contribution rate was 17.7% of covered payroll of $19,755,662. The components of the Net OPEB liability of the City on June 30, 2021, are as follows: Other Post Employment Benefits Fund Changes in Net OPEB Liability Increase Total (Decrease) OPEB Plan Fiduciary Net OPEB Liability Net Position Liability Changes in Net OPEB Liability (a) (b) (a) - (b) Balances as of June 30, 2020 $ 63,320,996 $ 42,672,534 $ 20,648,462 Changes for the year: Service cost 1,089,006 - 1,089,006 Interest 4,094,951 - 4,094,951 Differences between expected and actual exp (5,370,178) - (5,370,178) Changes in assumptions 2,447,804 - 2,447,804 Benefit payments (2,866,652) (2,866,652) - Employer contributions - 3,503,888 (3,503,888) Net investment income - 12,864,455 (12,864,455) Trust administrative expenses - (3,000) 3,000 Balances as of June 30, 2021 $ 62,715,927 $ 56,171,225 $ 6,544,702 Plan Fiduciary Net Position as % of total OPEB Liability 89.6% Rate of return. For the year ended June 30, 2021, the annual money-weighted rate of return on investments, net of investment expense, was 30.15%. The money-weighted rate of return expresses investment performance, net of investment expense, adjusted for the changing amounts invested. Actuarial Methods and Significant Assumptions The total OPEB liability was determined by an actuarial valuation as of June 30, 2021, with liabilities as of July 1, 2020 based on an actuarial date of July 1, 2019 projected to the July 1, 2020 on a “no loss / no gain” 98 132

2021 Annual Comprehensive Financial Report for the City of Dover, Delaware Financial Section – Part C – Notes to the Basic Financial Statements Item 3. basis, using the following actuarial assumptions, applied to all periods included in the measurement, unless otherwise specified: Actuarial cost method Entry Age Normal Level % of Salary Amortization method Level Dollars Amortization period 27 years Asset valuation method Fair Market Value Actuarial assumptions: Investment rate of return 6.5% Discount rate 6.5% Inflation 2.5% per year included in payroll growth Healthcare cost trend rates Pre-65 Medical / Rx Initial rate of 8.0% decreasing by 0.5% annually to an ultimate rate of 4.5% Post-65 Medical / Rx Initial rate of 8.0% decreasing by 0.5% annually to an ultimate rate of 4.5% Mortality Total Dataset Headcount Weighted Mortality Table fully generational using scale MP-2020 a. Non-Police: SOA Pub-2010 General b. Police: SOA Pub-2010 Public Safety c. Surviving Spouses: SOA Pub-2010 Contingent Survivors Changes in Actuarial Assumptions or Methods The long term expected rate of return on OPEB plan investments was determined using a building block method in which best-estimate ranges of expected future real rates of return (expected returns, net of investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. Best estimates of arithmetic real rates of return for each major asset class included in the target asset allocation as of June 30, 2021 are summarized in the following table: OPEB Trust Long-Term Expected Rate of Return Long-Term Target Expected Real Asset Class Allocation* Rate of Return Cash & Short-Term Bond 9.00% 0.50% Fixed Income 22.00% 3.55% Equity 64.00% 8.26% Real Estate 5.00% 7.96% Long-Term Expected Rate of Return 6.50% *The best-estimate range for the long-term expected rate of return is determined by adding expected inflation to expected long-term real returns and reflecting expected volatility and correlation. The capital market assumptions are per Milliman's investment consulting practice. 99 133

2021 Annual Comprehensive Financial Report for the City of Dover, Delaware Financial Section – Part C – Notes to the Basic Financial Statements Item 3. Discount Rate The discount rate used to measure the total OPEB liability was 6.5%. The projection of cash flows used to determine the discount rate assumed that City contributions will be made at rates equal to the actuarially determined contribution rates. Based on those assumptions, the OPEB plan’s fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on OPEB plan investments was applied to all periods of projected benefit payments to determine the total OPEB liability. Sensitivity of the Net OPEB Liability to Changes in the Discount Rate The following presents the net OPEB liability as of June 30, 2021, calculated using the discount rate of 6.50%, as well as what the City’s net OPEB liability would be if it were calculated using a discount rate that is 1 percentage point lower (5.50%) or 1 percentage point higher (7.50%) than the current rate. Other Post-Employment Benefits 1% Current 1% Decrease Discount Rate Increase 5.50% 6.50% 7.50% Net OPEB liability $ 14,952,700 $ 6,544,702 $ (344,763) Sensitivity of the Net OPEB Liability to Changes in the Healthcare Cost Trend Rate The following presents the net OPEB liability as of June 30, 2021, calculated using the health care trend rates assumed and what it would be using 1% higher and 1% lower health care trend rates: Health Care Trend Rates Assumptions 1% Current 1% Decrease Trend Rate Increase Net OPEB liability $ (648,026) $ 6,544,702 $ 15,367,756 OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB For the year ended June 30, 2021, the City recognized OPEB expense (credit) of ($5,013,357) as calculated in the following table: OPEB Expense Service cost $ 1,089,006 Interest 4,094,951 OPEB plan administrative expenses 3,000 Projected earnings on OPEB plan investments (2,794,003) Current period recognition of deferred outflows/(inflows) of resources Differences between expected and actual experience (4,954,392) Net difference between projected and actual earnings on plan investments (2,192,954) Changes of assumptions (258,965) Total OPEB Credit $ (5,013,357) 100 134

2021 Annual Comprehensive Financial Report for the City of Dover, Delaware Financial Section – Part C – Notes to the Basic Financial Statements Item 3. On June 30, 2021, the City reported deferred outflows (inflows) of resources related to OPEB from the following sources: Deferred Outflows Deferred Inflows Deferred Outflows (Inflows) of Resources Differences between expected and actual experience $ - $ (10,452,399) Changes in assumptions 2,772,949 - Net difference between projected and actual earnings in - (7,626,646) OPEB plan investments Total Deferred Outflows (Inflows) of Resources $ 2,772,949 $ (18,079,045) Amounts reported as deferred inflows of resources related to OPEB will be recognized in OPEB expense as follows: Fiscal Year Ending June 30: 2022 $ (5,351,160) 2023 (4,048,703) 2024 (3,307,669) 2025 (2,598,564) Separate Other Postemployment Benefit fund financial statements have not been issued; accordingly, they are presented separately, as follows: The City of Dover, Delaware Schedule of Other Post-Employment Benefits Trust Fund Net Position June 30, 2021 Other Post-Employment Benefit Trust Fund Assets: Cash and cash equivalents $ 2,503,555 Investments at Fair Value - Mutual Funds 53,894,800 Total Assets 56,398,355 Liabilities: Accounts Payable 227,130 Total Liabilities 227,130 Net Position: Net Position Restricted for Retiree Health Benefits $ 56,171,225 101 135

2021 Annual Comprehensive Financial Report for the City of Dover, Delaware Financial Section – Part C – Notes to the Basic Financial Statements Item 3. The City of Dover, Delaware Schedule of Changes in Other Post-Employment Benefits Trust Fund Net Position June 30, 2021 Other Post-Employment Benefit Trust Fund Additions: Net Investment Income $ 12,864,455 City's Contribution-Payroll Based 410,488 City's Contribution-Lump Sum 3,093,400 Total Additions 16,368,343 Deductions: Benefit Payments - General Administration 2,866,652 Total Deductions 3,000 Change in Net Position Net Position - Beginning 13,498,691 Net Position - Ending $ 42,672,534 16. DEFERRED COMPENSATION PLAN Effective November 14, 1983, the City added a self-directed 457 Deferred Compensation Plan to its employee benefit options. The plan is administered by the International City Management Retirement Corporation (RC). The assets are held in the name of each participant with the ICMA (International City/County Management Associations) Retirement Trust. Employees are eligible to make contributions to the plan not to exceed the ceiling set by federal regulations. The City later added an alternative investment option for the Deferred Compensation Plan with Nationwide Retirement Solutions. In May 1994, the City offered the 457 Deferred Compensation Plan to employees as their pension plan in lieu of participation in the General Employee Pension Plan. At that time 41 employees opted out of the Defined Benefit Pension Plan and enrolled in the Deferred Compensation Plan. The ICMA 457 Deferred Compensation Plan has assets of $12,077,932 (market value) as of June 30, 2021, with 161 active employees contributing $493,666. The Nationwide plan has assets of $4,464,005 (market value) as of June 30, 2021 with 13 active employees contributing $91,573. Quarterly statements are mailed to each participant by the plan administrators. All administration fees are borne by the participants. All contributions are 100% vested upon election of the plan. Employees are eligible to withdraw or rollover to another plan upon separation of service. Withdrawals prior to age 59½ could be subject to penalty. Employees who participate in the defined benefit plan are also eligible for the 457 Deferred Compensation Plan. No matching employer contribution is made to the 457 Deferred Compensation Plan. As of June 30, 2021, there are 383 employees eligible to enroll in the 457 Deferred Compensation Plan. 102 136

2021 Annual Comprehensive Financial Report for the City of Dover, Delaware Financial Section – Part C – Notes to the Basic Financial Statements Item 3. All amounts of compensation deferred under the plans, all property and rights purchased with those amounts, and all income attributable to those amounts, property or rights are (until paid or made available to the employee or other beneficiary) solely the property and rights of the individuals who participate in the deferred compensation plan and are not subject to the claims of the City’s general creditors. 17. RETIREMENT PLANS The City participates and/or manages four retirement plans on behalf of its employees. Three of which are defined benefit plans, and one is a defined contribution plan. Two of the defined benefit plans are closed to new hires. All full-time employees are required to enroll in a retirement plan. During fiscal year 2021, the total wages were $24.1 million. The number of employees eligible for pension benefits as of June 30, 2021 is 383. Following is the total of the City of Dover’s pension liabilities, pension assets, deferred outflows of resources and deferred inflows of resources related to pensions, and the pension expense and expenditures for the fiscal year ended June 30, 2021: 2021 Police General DPERS Total Pension Assets $ 17,487,622 $ 55,901,858 $ 37,994,852 $ 111,384,332 Pension Liabilities 18,137,819 66,024,296 39,302,960 123,465,075 Net Pension Liabilities 650,197 10,122,438 1,308,108 12,080,743 Deferred Outflows of Resources - - 3,141,303 3,141,303 Deferred Inflows of Resources (2,026,208) (7,266,001) (1,600,869) (10,893,078) Pension Expense (486,692) 524,219 1,634,917 1,672,444 A. Defined Contribution Plan Effective July 1, 2000, the City implemented an IRC 401a Money Purchase Plan “401a Plan,” a self-directed defined contribution plan, as an alternative for pension benefits. The contribution and funding requirements of the plan are both established and amended by the City. The plan is administered by the MissionSquare Retirement Corporation. The assets are held in the name of each participant with the MissionSquare Retirement Trust. Quarterly statements are mailed to each participant by MissionSquare. All administration fees are borne by the participants. The Dover Organization of Employees (DOE) union contract renewed effective July 1, 2021 through June 30, 2024. The contract’s mandatory minimum employee contribution (MMEC) as well as the City’s minimum matching contribution was unchanged and is as follows: Effective Date Minimum Employee Contribution City’s Match (Up to) March 27, 2016 4% 7% July 1, 2016 5% 8% July 1, 2017 6% 9% 103 137

2021 Annual Comprehensive Financial Report for the City of Dover, Delaware Financial Section – Part C – Notes to the Basic Financial Statements Item 3. All other employees, except for FOP members, must contribute 3% of pensionable wages into the 401a Plan. The City matches the 3% contribution into the 401a Plan. The City provides an additional dollar-for- dollar match into the 401a Plan if the employee contributes to their 457 Plan, up to a maximum of 3% for a total matching contribution not to exceed 6%. (see note 16 – Deferred Compensation Plan). The 401a Plan and 457 Plan contributions are calculated on base wages plus on-call pay and pay adjustments. All full-time regular employees are eligible, excluding law enforcement personnel. Personnel that have elected the defined contribution plan are not eligible for the defined benefit plan. All contributions are 100% vested upon election of the plan. To be eligible for benefit payments, the participant must meet the same eligibility requirements as the participants in the defined benefit plan. Employees are eligible to withdraw or rollover to another plan the employer and employee benefits upon separation of service. Withdrawals prior to age 59 ½ could be subject to penalty. As of June 30, 2021, there were 203 full-time employees enrolled in the 401a plan. The City contributed a total of $540,394 on wages of approximately $8.5 million. Employees contributed $384,971 to the 401a Money Purchase Plan. The market value of the 401a plan assets totaled $11,098,273 as of June 30, 2021. B. Defined Benefit Plans The City participates in three defined benefit pension plans: City of Dover Police Pension Plan (closed), City of Dover General Employee Pension Plan (closed), and State of Delaware County and Municipal Police Pension Plan. The City of Dover Police Pension Plan, a single employer defined benefit plan, covers all uniformed police officers hired prior to September 1, 1982. The City of Dover General Employee Pension Plan, a single employer defined benefit plan, covers all eligible full-time permanent employees, other than police officers hired prior to September 29, 2009. The State of Delaware County and Municipal Police Pension Plan, a multi-employer cost sharing defined benefit plan, covers all uniformed police officers hired on or after September 1, 1982. The City makes employer contributions to all three plans. The City holds, on behalf of the Pension Boards of Trustees, the assets of the two single employer defined benefit plans and, accordingly, is required to prepare pension trust fund financial statements using the accrual basis of accounting. Investments are reported at fair value based on quoted market prices. Receivables and payables represent year end accruals of short-term receipts or charges. The administration of plan assets for both the Police Pension Plan and the General Employee Pension Plan is conducted by the Pension Boards as described in the subsequent disclosures. 104 138

2021 Annual Comprehensive Financial Report for the City of Dover, Delaware Financial Section – Part C – Notes to the Basic Financial Statements Item 3. Separate pension fund financial statements for the City Police Pension and General Employees’ Pension Plan have not been issued; accordingly, they are presented separately, as follows: The City of Dover, Delaware Combining Schedule of Pension Trust Fund Net Position June 30, 2021 Police General Pension Pension Totals Assets: Cash and cash equivalents $ 2,727,182 $ 5,937,711 $ 8,664,893 Investments at fair value - Mutual Funds 14,760,440 49,965,406 64,725,846 Total Assets 17,487,622 55,903,117 73,390,739 Liabilities: Accounts Payable - 1,259 1,259 Net position held in trust for pension benefits $ 17,487,622 $ 55,901,858 $ 73,389,480 The City of Dover, Delaware Combining Schedule of Changes in Pension Trust Fund Net Position For the Year Ended June 30, 2021 Police General Pension Pension Totals Additions Net investment income $ 3,815,763 $ 12,705,909 $ 16,521,672 City's contribution - payroll based - 2,427,721 2,427,721 City's contribution - lump sum 435,100 - 435,100 Employee contribution - 172,840 172,840 State grants 552,277 - 552,277 Other 485 - 485 Total Additions to Net Position 4,803,625 15,306,470 20,110,095 Deductions Benefit payments 1,534,080 4,291,562 5,825,642 General administration 6,824 20,594 27,418 Total Deductions From Net Position 1,540,904 4,312,156 5,853,060 Change in net position 3,262,721 10,994,314 14,257,035 Net Position - Beginning 14,224,901 44,907,544 59,132,445 Net Position - Ending $ 17,487,622 $ 55,901,858 $ 73,389,480 Plan member contributions are recognized in the period in which the contributions are due. Employer contributions to each plan are recognized when due, pursuant to formal commitments, to provide contributions. Benefits or refunds are recognized when due and payable in accordance with the terms of 105 139

2021 Annual Comprehensive Financial Report for the City of Dover, Delaware Financial Section – Part C – Notes to the Basic Financial Statements Item 3. each plan. Investment management and consultant fees are paid from the Pension Trust Funds. All actuarial costs are paid from other City funds. City of Dover Police Pension Plan Plan Description This contributory pension plan began on January 1, 1970 under the authority of the City Code, Chapter 62, Article III, Pension Plan, Section 62-71 through 62-84. The contribution and funding requirements of the plan are established by the City and may be amended by the City Council. It is a closed plan. The last active employee retired June 29, 2006. An officer’s pension right is vested upon the completion of 15 years of continuous service. As of June 30, 2021, there are 45 retirees and beneficiaries receiving benefits. Fully vested employees who have completed 20 to 25 years of continuous service are entitled to annual benefits equal to 2.5% of their average earnings for each year of continuous service. The maximum benefit is 62.5% of average earnings. If a participant terminates after completing 15 years of service, the participant will be eligible for a deferred benefit commencing at age 60 with a benefit accrued at the date of termination. In place of this vesting, participants may elect to receive their accumulated contributions. Disability benefits are paid to a participant who is totally or partially disabled in the performance of his or her duties. The total duty-connected disability benefit is payable monthly and equal to 75% of the monthly rate of earning at the time of disability. The partial duty-connected disability benefit is the accrued benefit at the date of disability if not less than 50% of average earnings. Disability benefits cease if the participant recovers or dies. If the disabled participant reaches his normal retirement date, the benefit is reduced by one-third. Survivor’s benefits are payable monthly in an amount equal to 75% of the participant’s rate of earnings, for a duty related death. Survivor’s benefits are payable monthly in an amount not to exceed 25% of the participant’s rate of earnings, for a non-duty related death, if the participant has completed 10 years of service. If a retired participant dies, his or her spouse receives 50% of the benefit. All benefits under the plan, including survivor’s benefits, are increased 2% per annum. There have been no changes in benefits during the valuation period by City Council. Plan Administration Management of the plan investments are fully vested with the City of Dover Police Pension Board as established in the City Code, which consists of seven members – three elected by plan members, two Council members appointed by the Council President, the Chief of Police, and the City Manager. The City Controller/Treasurer serves as an ex-officio member. Milliman of Albany, New York provides asset management advisory and consulting services to the Board. Funding Policy The City intends to continue to fund the Actuarially Determined Contribution (ADC) as provided for in the actuarial valuation. The funding may be impacted by differences in actual experience and the actuarial assumptions. The employer contributions are considered by the actuaries in their determination of the ADC. The State contributes to the pension fund on behalf of the City based on 1) an allocation to the City based on a 0.25% surcharge on insurance policies issued in the state and the number of officers employed and 106 140

2021 Annual Comprehensive Financial Report for the City of Dover, Delaware Financial Section – Part C – Notes to the Basic Financial Statements Item 3. 2) 75% matching grant for the annual cost of living increase (COLA) granted to police retirees on January 1 each year. For the fiscal year ending June 30, 2021, the State contributed $552,277. The ADC conforms to the entry age method as defined in GASB Statement No. 67/68. The City has interim valuations completed each year between the required biennial valuations to monitor the funding progress. The City’s actuary is Nyhart of Indianapolis, Indiana. The ADC is being amortized using a level dollar method. The amortization period is 4 years for the 2021 fiscal year and will decline by 1 each year until 1 year. Total contributions to the plan for the fiscal year ending June 30, 2021 were $1.0 million, which is 106% of the ADC. The ADC is based on a closed 10-year level dollar amortization of the Unfunded Actuarial Accrued Liability (UAAL). The Schedule of Changes in the Net Pension Liability, and a Schedule of Employer Contributions are presented as Required Supplementary Information (RSI) following the notes to the financial statements. Net Pension Liability The total pension liability was determined by an actuarial valuation as of July 1, 2021 with liabilities projected to the June 30, 2021 measurement date. As of June 30, 2021, the plan was 96.42% funded. The total pension liability for benefits was $18.1 million, and the fiduciary net position was $17.5 million, which resulted in a net pension liability (NPL) of $.7 million for the primary government. There are no active officers; therefore, there is no covered payroll or ratio of the net pension liability to cover payroll. Key methods and assumptions used in calculating the total pension liability in the latest actuarial valuation, are presented below: Rate of return. For the year ended June 30, 2021, the annual money-weighted rate of return on investments, net of investment expense, was 29.77%. The money-weighted rate of return expresses investment performance, net of investment expense, adjusted for the changing amounts invested. Actuarial Methods and Significant Assumptions Valuation date July 1, 2021 Actuarial cost method Entry Age Method Amortization method Level Dollars Amortization period Closed Asset valuation method Fair Market Value Actuarial assumptions: Investment rate of return 6.5% Discount rate 6.5% Projected salary increases none, no remaining active participants Includes inflation at 2.2% Automatic Cost of living (retirees) 2.0% Mortality Rates 107 141

2021 Annual Comprehensive Financial Report for the City of Dover, Delaware Financial Section – Part C – Notes to the Basic Financial Statements Item 3. Healthy Participants: PubS-2010 Public Safety Mortality Table with fully generational improvements from 2010 based on Society of Actuaries Scale MP-2020 Survivors: Pub-2010 Continuing Survivors Mortality Table with fully generational improvements from 2010 based on Society of Actuaries Scale MP-2020 Disabled PubS-2010 Public Safety Disabled Retiree Mortality Table with fully generational improvements from 2010 based on Society of Actuaries Scale MP-2020 Changes in Actuarial Assumptions or Methods The long term expected rate of return on pension plan investments was determined using a building block method in which expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. These expected future real rates of return are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. Best estimates of arithmetic real rates of return for each major asset class included in the pension plan’s target asset allocation as of June 30, 2021 are summarized in the following table: Police Pension Fund Long-Term Expected Rate of Return Long-Term Target Expected Real Asset Class Allocation* Rate of Return Cash and Equivalents 7.00% 1.11% Fixed Income 27.00% 1.92% Real Estate 5.00% 7.24% Stocks 61.00% 7.38% Long-Term Expected Rate of Return 100.00% 6.50% *The best-estimate range for the long-term expected rate of return is determined by adding expected inflation to expected long-term real returns and reflecting expected volatility and correlation. The capital market assumptions are per Milliman's investment consulting practice. 108 142

2021 Annual Comprehensive Financial Report for the City of Dover, Delaware Financial Section – Part C – Notes to the Basic Financial Statements Item 3. Police Pension Fund Changes in Net Pension Liability Increase Total (Decrease) Pension Plan Fiduciary Net Pension Liability Net Position Liability (a) (b) (a) - (b) Balances as of June 30, 2020 $ 18,644,121 $ 14,224,901 $ 4,419,220 Changes for the year: Service cost - - - Interest on total pension liability 1,162,010 - 1,162,010 Differences between expected and actual experience - - - Changes of assumptions (134,232) - (134,232) Benefit payments (1,534,080) (1,534,080) - Employer contributions - 987,862 (987,862) Net investment income - 3,815,763 (3,815,763) Administrative expenses - (6,824) 6,824 Balances as of June 30, 2021 $ 18,137,819 $ 17,487,622 $ 650,197 Discount Rate The discount rate used to measure the total pension liability was 6.5%. The projection of cash flows used to determine the discount rate assumed that plan member contributions will be made at the current contribution rate and that contributions will be made at rates equal to the difference between actuarially determined contribution rates and the member rate. Based on those assumptions, the pension plan’s fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability. Sensitivity Analysis of Net Pension Liability to Changes in the Discount Rate The following presents the net pension liability, calculated using the discount rate of 6.50%, as well as what the City’s net pension liability would be if it were calculated using a discount rate that is 1 percentage point lower (5.50%) or 1 percentage point higher (7.50%) than the current rate. Police Pension Fund 1% Current 1% Decrease Discount Rate Increase 5.50% 6.50% 7.50% Net pension liability $ 2,337,079 $ 650,197 $ (794,894) 109 143

2021 Annual Comprehensive Financial Report for the City of Dover, Delaware Financial Section – Part C – Notes to the Basic Financial Statements Item 3. Pension Expense, Deferred Outflows/Inflows of Resources Related to Pensions For the year ended June 30, 2021, the City recognized pension credit of ($486,692) calculated in the following chart: Police Pension Expense July 1, 2020 to June 30, 2021 Interest on total pension liability $ 1,162,010 Projected earnings on pension plan investments (906,645) Administrative expenses 6,824 Current period recognition of deferred outflows/(inflows) of resources Changes of assumptions (134,232) Differences between projected and actual earnings on plan investments (614,649) Total Pension Credit $ (486,692) As of June 30, 2021, the City reported deferred outflows/(inflows) of resources related to pension from the following sources: Police Pension Plan Deferred Inflows of Resources Net difference between projected and actual earnings $ (2,026,208) Amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows: Police Pension Plan Fiscal Year Ending June 30: 2022 $ (484,223) 2023 (473,064) 2024 (487,099) 2025 (581,822) City of Dover General Employee Pension Plan Plan Description The City of Dover General Employee Pension Plan started on July 1, 1967, under the authority of the City Council, Municipal Code, Chapter 2, Article IV, Division 7, General Employee Pension Plan, Sections 2-321 through 2-370, and was made contributory on July 1, 1983. Employees contribute 3.5% of gross salary, exclusive of unscheduled overtime. An employee’s pension right is vested upon completion of 10 years 110 144

2021 Annual Comprehensive Financial Report for the City of Dover, Delaware Financial Section – Part C – Notes to the Basic Financial Statements Item 3. of continuous service. As of the valuation date, June 30, 2021, the General Employee Pension Plan is comprised of the following: Retired and beneficiaries currently receiving benefits 218 Active employees Fully Vested 71 Deferred vested 18 The percentage of covered payroll which employees contribute is stated in the City Code and is considered by the actuaries in their determination of the actuarial determined contribution for service cost. For the year ended June 30, 2021, gross payroll earnings of $4.9 million were reported to and covered by this plan. An employee hired before May 1, 1994 is eligible for normal retirement benefits under this plan, when they attain the age of 65 with 10 years of continuous service. This same employee is eligible for early retirement when he/she attains the age of 50 with 20 years of continuous service or has completed 25 years of service. Employees hired on or after May 1, 1994 who attained age 55 and whose attained age plus years of continuous service is equal to or greater than 80 are eligible for early-unreduced retirement benefits under this plan. The monthly benefits are 1/50 of the average actual monthly earnings multiplied by years and months of credited service upon retirement (highest 36 consecutive months in his/her final 10 years of continuous service). The monthly benefit shall not be less than $200 per month. Benefits are paid for the lifetime of the participant. Upon the death of the participant, 50% of the payments to which the participant was or would have been entitled shall be made to their eligible survivor. An employee may also take an early-reduced retirement on any date following the attainment of age 55 and the completion of 10 years of continuous service. However, the early retirement benefit is calculated in the same manner as the normal retirement benefit, at a reduced rate of one-half percent for each month computed from the date of early retirement to age 65 years. If an employee terminated before becoming vested in the plan, they are eligible to withdraw this total contribution with interest compounded annually. Survivor's benefits are payable to eligible survivors of a participant who dies after completing 10 years of continuous service. The amount of the death benefit is equal to 50% of the retirement benefit the participant would have received had he retired the day before he died. The benefit is calculated using the normal retirement benefit formula and service at date of termination. Effective September 29, 2009 the City Council voted to close the General Employees’ Pension plan to new hires. There have been no changes in benefits during the valuation period by City Council. Plan Administration Management of the plan investments are fully vested with the City of Dover Employees’ Pension Board as established in the City Code, which consists of three elected by plan members, two Council members appointed by the Council President, the City Controller/Treasurer, and the City Manager. Milliman of Albany, New York provides asset management advisory and consulting services to the Board. 111 145

2021 Annual Comprehensive Financial Report for the City of Dover, Delaware Financial Section – Part C – Notes to the Basic Financial Statements Item 3. Funding Policy The City intends to fund the actuarial determined contributions (ADC) as provided for in the actuarial valuation. The City uses the percentage of payroll determined by the actuary for its contributions. The funding may be impacted by differences in actual experience and the actuarial assumptions. The employer contributions are considered by the actuaries in their determination of the actuarial determined contribution. The City makes payroll-based contributions for active members in the plan. The Actuarially Determined Contribution is based on a closed 15-year level dollar amortization of the Unfunded Actuarial Accrued Liability (UAAL). The Schedule of Changes in the Net Pension Liability, and a Schedule of Employer Contributions are presented as Required Supplementary Information (RSI) following the notes to the financial statements. Net Pension Liability The total pension liability was determined by an actuarial valuation as of July 1, 2021 with liabilities projected to the June 30, 2021 measurement date. As of June 30, 2021, the plan was 84.67% funded. The total pension liability for benefits was $66.0 million, and the fiduciary net position was $55.9 million, which resulted in a net pension liability (NPL) of $10.1 million for the primary government. The covered payroll (annual payroll of active employees covered by the plan) was $5.1 million and the ratio of the NPL to the covered payroll was 199.79%. Rate of return. For the year ended June 30, 2021, the annual money-weighted rate of return on investments, net of investment expense, was 29.71%. The money-weighted rate of return expresses investment performance, net of investment expense, adjusted for the changing amounts invested. Key methods and assumptions used in calculating the total pension liability are presented in the following chart: Actuarial Methods and Significant Assumptions Valuation date July 1, 2021 Actuarial cost method Entry Age Method Amortization method Level Dollar Amortization period Closed; 15-year of the Unfunded AAL Asset valuation method Fair Market Value Actuarial Assumptions: Investment rate of return 6.5% Discount rate 6.5% Projected salary increases 3.0% Includes inflation at 2.2% 112 146

2021 Annual Comprehensive Financial Report for the City of Dover, Delaware Financial Section – Part C – Notes to the Basic Financial Statements Item 3. Mortality Rates Healthy Participants: PubG-2010 General Mortality Table with fully generational improvements from 2010 based on Society of Actuaries Scale MP-2020 Survivors: Pub-2010 Continuing Survivors Mortality Table with fully generational improvements from 2010 based on Society of Actuaries Scale MP-2020 Disabled PubNS-2010 Non-Public Safety Disabled Retiree Mortality Table with fully generational improvements from 2006 based on Society of Actuaries Scale MP-2020 Changes in Actuarial Assumptions or Methods The long-term expected rate of return on pension plan investments was determined using a building block method in which expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. These expected future real rates of return are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. Best estimates of arithmetic real rates of return for each major asset class included in the pension plan’s target asset allocation as of June 30, 2021 are summarized in the following table: General Employee Pension Plan Long-Term Expected Rate of Return Long-Term Target Expected Real Asset Class Allocation* Rate of Return Cash 6.00% 1.11% Fixed Income 28.00% 1.88% Stocks 61.00% 7.38% Real Estate 5.00% 7.24% Long-Term Expected Rate of Return 100.00% 6.50% *The best-estimate range for the long-term expected rate of return is determined by adding expected inflation to expected long-term real returns and reflecting expected volatility and correlation. The capital market assumptions are per Milliman's investment consulting practice. 113 147

2021 Annual Comprehensive Financial Report for the City of Dover, Delaware Financial Section – Part C – Notes to the Basic Financial Statements Item 3. General Employee Pension Fund Changes in Net Pension Liability Increase Total (Decrease) Pension Plan Fiduciary Net Pension Liability Net Position Liability (a) (b) (a) - (b) Balances as of June 30, 2020 $ 66,031,408 $ 44,907,544 $ 21,123,864 Changes for the year: Service cost 396,232 - 396,232 Interest on total pension liability 4,178,321 - 4,178,321 Effect of assumptions changes or inputs (290,103) - (290,103) Benefit payments (4,291,562) (4,291,562) - Employer contributions - 2,427,721 (2,427,721) Member contributions - 172,840 (172,840) Net investment income - 12,705,909 (12,705,909) Administrative expenses - (20,594) 20,594 Balances as of June 30, 2021 $ 66,024,296 $ 55,901,858 $ 10,122,438 Discount Rate The discount rate used to measure the total pension liability was 6.5%. The projection of cash flows used to determine the discount rate assumed that plan member contributions will be made at the current contribution rate and that contributions will be made at rates equal to the difference between actuarially determined contribution rates and the member rate. Based on those assumptions, the pension plan’s fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability. Sensitivity Analysis of Net Pension Liability to Changes in the Discount Rate The following presents the net pension liability, calculated using the discount rate of 6.50%, as well as what the net pension liability would be if it were calculated using a discount rate that is 1 percentage point lower (5.50%) or 1 percentage point higher (7.50%) than the current rate. General Employee Pension Fund 1% Current 1% Decrease Discount Rate Increase 5.50% 6.50% 7.50% Net pension liability $ 17,856,886 $ 10,122,438 $ 3,667,018 114 148

2021 Annual Comprehensive Financial Report for the City of Dover, Delaware Financial Section – Part C – Notes to the Basic Financial Statements Item 3. Pension Expense, Deferred Outflows/Inflows of Resources Related to Pensions For the year ended June 30, 2021, the City recognized pension expense of $524,219 as calculated in the following chart: General Employee Pension Expense July 1, 2020 to June 30, 2021 Service cost $ 396,232 Interest on total pension liability 4,178,321 Administrative expenses 20,594 Member contributions (172,840) Projected earnings on pension plan investments (2,863,364) Current period recognition of deferred outflows/(inflows) of resources Differences between expected and actual experience 723,611 Differences between projected and actual earnings on plan investments (2,150,334) Changes of assumptions 391,999 Total Pension Expense $ 524,219 As of June 30, 2021, the City reported deferred outflows/(inflows) of resources related to pension from the following sources: General Employee Pension Plan Deferred Inflows of Resources Changes in assumptions (52,085) Differences between expected and actual experience (7,120,950) Net difference between projected and actual earnings (92,966) Total Deferred Inflows of Resources $ (7,266,001) 115 149

2021 Annual Comprehensive Financial Report for the City of Dover, Delaware Financial Section – Part C – Notes to the Basic Financial Statements Item 3. Amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows: General Employee Pension Plan Fiscal Year Ending June 30: 2022 $ (1,884,860) 2023 (1,706,451) 2024 (1,706,179) 2025 (1,968,511) Delaware Public Employee Retirement System - County and Municipal Police and Firefighters’ Pension Plan Plan Description and Contribution Information The City participates in the “County and Municipal Police and Firefighters’ Pension Plan” (the Plan) a cost sharing multiple-employer defined-benefit plan established in the Delaware code. The City’s uniformed police officers whose employment with the City started on or after September 1, 1982 under the authority of the City Code, Chapter 62, Article III, Pension Plan, Section 62-71 can participate in this plan. The General Assembly is responsible for setting benefits, contributions and amending plan provisions; administrative rules and regulations are adopted and maintained by the Board of Pension Trustees (the Board). The management of the Plan is the responsibility of the Board. The Board is comprised of five members appointed by the Governor and confirmed by the State Senate, plus two ex-officio members. The daily operation is the responsibility of the Office of Pensions. Although most of the assets of the plan are commingled with other Plans for investment purposes, the Plan’s assets may be used only for the payment of benefits to the members of the Plan in accordance with the terms of the Plan. The Plan’s service benefits calculation is 2.5% of final average monthly compensation multiplied by years of credited service up to 20 years, plus 3.5% of final average monthly compensation multiplied by years of service more than 20 years. For this plan, final average monthly compensation is the monthly average of the highest three consecutive years of compensation. Vesting is at five years of credited service and retirement age is 62 with five years of service; age plus credited service (but not less than 10 years) equals 75; or 20 years of credited service. As of June 30, 2021, city membership in this plan is comprised of the following: Retired and beneficiaries currently receiving benefits 77 Active employees: Fully Vested 5 years 79 Non-Vested 32 116 150

2021 Annual Comprehensive Financial Report for the City of Dover, Delaware Financial Section – Part C – Notes to the Basic Financial Statements Item 3. The following are brief descriptions of the Plan. For a more complete description, please refer to the Delaware Public Employees’ Retirement System CAFR on the web at https://open.omb.delaware.gov/FinancialReports/financials/FY21AnnualReport.pdf. Retirement Age 62 with 5 years of service; age plus credited service (but not less than 10 years) equals 75; or 20 years of credited service. Disability Benefits Duty – Total Disability – 75% of final average compensation plus 10% for each dependent not to exceed 25% for all dependents. Duty – Partial Disability – Calculated the same as Service Benefits, subject to minimum 50% of final average compensation. Non-Duty – Same as Service Benefits, total disability subject to a minimum 50% of final average monthly compensation plus 5% of each dependent not to exceed 20% for all dependents. Partial disability is subject to a minimum of 30% of final average monthly compensation. Survivor Benefits If employee is receiving a pension, then eligible survivor receives 50% of pension; if employee is active, eligible survivor receives 50% of pension the employee would have received at age 62. If the member is killed in the line of duty, the eligible survivor receives 75% of the member’s compensation. Contributions: Employer – Determined by Board of Pension Trustees. Employer contributions were 16.00%, 16.84%, and 16.68% of earnings for the Fiscal Year 2021, 2020 and 2019, respectively. The City’s contributions to the plan for years ended June 30, 2021, 2019 and 2018 were $1,328,868, $1,317,526, and $1,276,048, respectively, and were equal to the required contributions for each year. Total eligible full-time wages covered by the State plan were $7.9 million this fiscal year. Member – 7% of compensation. Basis of Presentation The DPERS financial statements are prepared on the accrual basis of accounting, whereby expenses are recorded when the liability is incurred, revenues are recorded in the accounting period in which they are earned and become measurable, and investment purchases and sales are recorded as of the related trade date. Plan member contributions are recognized in the period in which contributions are due. Employer contributions are recognized when due and the employer has a legal requirement to provide contributions. Benefits and refunds are recognized when due and payable in accordance with the terms of the plan. For purposes of measuring the net pension liability, deferred outflows of resources and deferred inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the DPERS Plan and additions to/deductions from DPERS’s fiduciary net position have been determined on the same basis as they are reported by DPERS. Employer Allocation Percentage Methodology The amounts assigned to each employer in the Schedule of Pension Amounts by Employer is each employer’s proportional share of the net pension liability, deferred outflows of resources, deferred 117 151

2021 Annual Comprehensive Financial Report for the City of Dover, Delaware Financial Section – Part C – Notes to the Basic Financial Statements Item 3. inflows of resources, and pension expense (the Collective Pension Amounts) determined in accordance with Governmental Accounting Standards Board No. 68, Accounting and Financial Reporting for Pensions (GASB 68). Management has elected to allocate the employer’s proportionate shares of the collective pension amounts based on the percentage of actual employer contributions as documented in the Schedule of Employer Allocations. The City’s proportionate share percentage is 8.5117% for the current fiscal year, 8.3407% for the prior year and the change is an increase of 0.171%. Pension Liabilities, Pension Expense and Deferred Outflows of Resources and Deferred Inflows of Resources related to Pensions On June 30, 2021, the City reported a net pension liability of $1,308,109 for its proportionate share of the collective net pension liability. The net pension liability was measured as of June 30, 2019, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of June 30, 2019, with update procedures used to roll forward the pension liability to June 30, 2020. The City’s proportion of the net pension liability was based on the percentage of actual employer contributions. The components of the proportionate share of the net pension liability of the Plan as of June 30, 2021 were as follows (dollar values expressed in thousands): County and Municipal Police & Firefighter's Pension Plan (dollar values expressed in thousands) (3) The Employers' (1) (2) proportionate Total Plan fiduciary share of the proportionate proportionate net pension share of the share of the liability (asset) Year pension liability net position (1)-(2) 2020 $ 39,303 $ 37,995 $ 1,308 2019 35,494 33,098 2,396 2018 32,897 30,957 1,940 2017 29,103 28,230 873 118 152

2021 Annual Comprehensive Financial Report for the City of Dover, Delaware Financial Section – Part C – Notes to the Basic Financial Statements Item 3. The City recognized pension expense of $1,634,917 for the year ended June 30, 2021, associated with membership within the Delaware State Police Pension Plan. As of June 30, 2021, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: County and Municipal Police & Firefighter's Pension Plan Deferred Outflows of Resources Differences between expected and actual experience $ 1,301,497 Change in proportion 27,964 Changes of assumptions 482,974 City contributions subsequent to the measurement date 1,328,868 Total Deferred Outflows of Resources $ 3,141,303 Deferred Inflows of Resources Differences between expected and actual experience $ (412,171) Changes in assumptions (197,617) Net difference between actual and expected earnings (927,422) Change in proportion (63,659) Total Deferred Inflows of Resources $ (1,600,869) The City’s contributions of $1,328,868 are subsequent to the measurement date and therefore are reported as deferred outflows of resources and will be recognized as a reduction of the net pension liability in the year ending June 30, 2022. Amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows: County and Municipal Police & Firefighter's Pension Plan Fiscal Year Ending June 30: 2022 $ (229,264) 2023 (68,750) 2024 92,711 2025 (26,000) 2026 140,559 Thereafter 302,310 119 153

2021 Annual Comprehensive Financial Report for the City of Dover, Delaware Financial Section – Part C – Notes to the Basic Financial Statements Item 3. The components of collective pension expense for the year ending June 30, 2020 are as follows: County and Municipal Police & Firefighter's Pension Expense June 30, 2020 Service cost $ 1,492,612 Member contributions (547,898) Administrative expenses 12,427 Changes in benefit terms 10,469 Interest on the total pension liability 2,396,639 Projected earnings on plan investments (2,222,755) Recognition of deferred outflow and inflows of resources: Changes in assumptions in the measurement of total pension liability 40,941 Differences between expected and actual experience 123,760 Differences between projected and actual earnings on plan investments 328,722 Total Pension Expense $ 1,634,917 The proportionate share of the total pension liability for the June 30, 2020 measurement date was determined by an actuarial valuation as of June 30, 2019, with update procedures used to roll forward the total pension liability to June 30, 2020. These actuarial valuations used the following actuarial assumptions: Actuarial Assumptions Investment rate of return/Discount rate1 7.0% Projected salary increases1 2.5% + Merit Cost-of-living adjustments 0.0% Inflation is included at 2.5%; the total pension liabilities are measured based on assumptions pertaining to the interest rates, inflation rates, and employee demographic behavior in future years. It is likely that future experience will not exactly conform to these assumptions. To the extent that actual experience deviates from these assumptions, the emerging liabilities may be higher or lower than anticipated. The more the experience deviates, the larger the impact on future financial statements. Mortality assumptions are based on the RP – 2014 tables with gender adjustments for healthy annuitants and disabled retirees and an adjusted version on MP-2015 mortality improvement scale on a fully generational basis. Projected benefit payments do not include the effects of projected ad hoc cost-of-living adjustments (ad hoc COLAs) as they are not substantively automatic. The primary considerations relevant to making this determination include the historical pattern of granting the changes and the consistency in the amounts of the changes. The long-term expected rate of return on pension plan investments was determined using a building-block method in which best-estimate ranges of expected future real rates of return (expected returns, net of investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by an asset allocation percentage, which is based on the nature and mix of current and expected plan 120 154

2021 Annual Comprehensive Financial Report for the City of Dover, Delaware Financial Section – Part C – Notes to the Basic Financial Statements Item 3. investments, and by adding expected inflation. Best estimates of geometric real rates of return for each major asset class included in the Plan’s current and expected asset allocation are summarized in the following table: County and Municipal Police & Firefighter's Pension Plan Long-Term Expected Rate of Return Long-Term Expected Real Asset Rate of Return Allocation Asset class: Domestic equity 5.7% 28.5% International equity 5.7 15.2 Fixed income 2.0 28.8 Alternative investments 7.8 23 Cash and equivalents - 4.5 Discount Rate The discount rate for all plans used to measure the total pension liability was 7.0%. The projection of cash flows used to determine the discount rate assumed that contributions from plan members will be made at the current contribution rates and that contributions from employers will be made at rates determined by the Board of Pension Trustees, actuarially determined. Based on those assumptions, the pension plans’ fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability. Sensitivity Analysis of Net Pension Liability to Changes in the Discount Rate The following presents the City’s proportionate share of the net pension liability (asset) of the Plan, calculated using the discount rate of 7.0%, as well as what the Plans’ net pension liability (asset) would be if it were calculated using a discount rate that is one-percentage-point lower or one-percentage-point higher than the current rate (dollar values expressed in thousands): County and Municipal Police & Firefighter's Pension Plan (dollar amounts expressed in thousands) 1% Current 1% Decrease Discount Rate Increase 6.00% 7.00% 8.00% Proportionate share of the net pension liability (asset) $ 7,281 1,308 (3,567) Separately issued financial statements for DPERS are available from the pension office at: McArdle Building, Suite 1 860 Silver Lake Blvd Dover, DE 19904 Or at the following web address: www.delawarepensions.com 121 155

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2021 Annual Comprehensive Financial Report for the City of Dover, Delaware Financial Section Item 3. PART D REQUIRED SUPPLEMENTARY INFORMATION 157 123

2021 Annual Comprehensive Financial Report for the City of Dover, Delaware Financial Section – Part D – Required Supplementary Information Item 3. SERVICES TO OUR RESIDENTS AND CUSTOMERS Animal Control Leaf Collection Beautification Building Library Bulky Trash Collection Parks & Recreation Community Development/Housing Planning & Zoning Community Policing Police Protection Elections Snow Removal Electricity Stormwater Economic Development Street Maintenance/Cleaning Emergency Preparedness Trash Collection Fire Protection Tree Maintenance Inspections & Code Enforcement Water & Wastewater 158 124

2021 Annual Comprehensive Financial Report for the City of Dover, Delaware Financial Section – Part D – Required Supplementary Information Item 3. CITY OF DOVER, DELAWARE GENERAL FUND Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual (Non-GAAP Basis) For the Year Ended June 30, 2021 VARIANCE ORIGINAL FINAL POSITIVE BUDGET BUDGET ACTUAL (NEGATIVE) Beginning Balance $ 5,813,100 $ 5,813,100 $ 6,468,022 $ 654,922 REVENUES: Fines & Police Revenue 509,500 509,500 379,367 (130,133) 911 Fee 63,300 63,300 63,337 37 Interest Earnings 140,000 140,000 88,840 (51,160) Library Revenues - General 123,400 123,400 37,015 (86,385) Kent County Book Reimbursement 245,000 245,000 41,981 (203,019) Business Licenses 1,470,000 1,470,000 1,378,146 (91,854) Permits & Other Fees 1,446,000 1,446,000 1,595,722 149,722 Miscellaneous Charges 30,000 30,000 23,592 (6,408) Police Extra Duty Fees 595,000 595,000 138,741 (456,259) Property Taxes 14,885,800 14,885,800 14,842,464 (43,336) Recreation Revenue 135,000 135,000 46,491 (88,509) Franchise Fee 645,000 645,000 592,261 (52,739) Sanitation Fees 3,090,600 3,090,600 3,125,135 34,535 Rent Revenue - Garrison Farm 105,000 105,000 104,838 (162) Court of Chancery Fees 1,440,000 1,440,000 1,834,620 394,620 Interfund Service Receipts 5,592,700 5,592,700 4,840,489 (752,211) Grants: DEMA State Grant - - 337,566 337,566 Police Pension Grant 500,000 500,000 552,277 52,277 Green Energy Grant 98,500 98,500 98,500 - Miscellaneous Grants 25,000 27,274 82,951 55,677 Transfer Tax 1,433,500 1,433,500 4,833,320 3,399,820 Transfer from Municipal Street Aid 750,000 750,000 797,825 47,825 Transfer from Civil Traffic Penalties 445,000 445,000 267,109 (177,891) Transfer from Police Grant Funds 155,000 155,000 228,352 73,352 Transfer from Other Reserves - 75,000 75,000 - Transfer from Water/Wastewater Fund 1,000,000 1,000,000 1,000,000 - Transfer from Electric Fund 10,000,000 10,000,000 10,000,000 - Total Revenues 44,923,300 45,000,574 47,405,939 2,405,365 TOTAL BEGINNING BALANCE & REVENUES $ 50,736,400 $ 50,813,674 $ 53,873,961 $ 3,060,287 (Continued) 159 125

2021 Annual Comprehensive Financial Report for the City of Dover, Delaware Financial Section – Part D – Required Supplementary Information Item 3. (Continued) VARIANCE ORIGINAL FINAL POSITIVE BUDGET BUDGET ACTUAL (NEGATIVE) EXPENDITURES: Tax Assessor $ 245,900 $ 238,400 $ 234,968 $ 3,432 Fire 769,900 769,900 739,416 30,484 Library 1,822,700 1,821,600 1,585,409 236,191 Recreation 1,129,700 1,129,700 842,002 287,698 Life Safety 432,700 434,974 436,473 (1,499) Code Enforcement 815,000 815,000 396,031 418,969 Planning 663,200 662,700 537,338 125,362 Public Inspections 595,300 595,800 563,081 32,719 Police 17,819,900 17,819,900 17,117,218 702,682 Police Extra Duty 750,000 750,000 292,152 457,848 Streets 699,700 689,700 628,708 60,992 Stormwater 785,900 639,900 520,769 119,131 Sanitation 2,506,800 2,553,425 2,420,078 133,347 Engineering 198,700 294,900 202,985 91,915 Allocated Expenditures: City Clerk 508,400 511,891 396,710 115,181 Council 156,600 156,600 108,898 47,702 Grounds Maintenance 1,456,600 1,456,600 1,361,200 95,400 City Manager 1,044,800 991,800 1,005,658 (13,858) Information Technology 912,800 912,800 767,727 145,073 Finance 992,700 992,700 836,233 156,467 Public Works-Administration 594,600 603,400 520,430 82,970 Facilities Management 655,800 655,800 624,299 31,501 Procurement and Inventory 715,900 730,284 651,157 79,127 Fleet Maintenance 930,600 924,600 863,347 61,253 Customer Services 1,107,600 1,107,600 1,040,432 67,168 Human Resources 524,200 529,200 487,846 41,354 Mayor 221,700 221,700 195,523 26,177 Insurance 800,000 848,000 832,967 15,033 Budget Appropriations Contribution to Downtown Dover Partnership 150,000 150,000 150,000 - Miscellaneous Grant Expense 25,000 100,000 75,000 25,000 Bank & Credit Card Fees 27,000 27,000 24,358 2,642 Retirees Health Care 2,045,400 2,045,400 2,045,400 - Subtotal 42,105,100 42,181,274 38,503,813 3,677,461 Debt Service - Principal and Interest 462,200 462,200 465,888 (3,688) Transfer to Capital Fund for Projects 2,078,100 2,078,100 2,078,100 - Transfer to Library Grant Fund - 1,100 1,068 32 Appropriation to Police Pension Fund 435,100 435,100 435,100 - Transfer to Uncollectible Reserve 100,000 100,000 100,000 - Transfer to Cable Franchise Reserve - - 14,765 (14,765) Storm Expense - - 271,253 (271,253) Appropriation to Police Pension Fund - State Grant 500,000 500,000 552,277 (52,277) Street Lights 815,000 815,000 815,961 (961) Total Expenditures 46,495,500 46,572,774 43,238,225 3,334,549 Budget Balance 4,240,900 4,240,900 10,635,736 (6,394,836) Total Budget Balance & Expenditures $ 50,736,400 $ 50,813,674 $ 53,873,961 $ (3,060,287) Budget Balance - Working Capital $ 10,635,736 Perspective and GAAP (Non-GAAP) Differences: Fair Value of Investment Adjustment 72,127 Deferred Revenues - Non-spendable (295,565) Inventory & Prepaids - Non-spendable (95,545) Unassigned Fund Balance $ 10,316,753 160 126

2021 Annual Comprehensive Financial Report for the City of Dover, Delaware Financial Section – Part D – Required Supplementary Information Item 3. Police Pension Fund Schedule of Changes in Net Pension Liability, Related Ratios (in Thousands) Fiscal Year Ending June 30, 2021 2020 2019 2018 2017 2016 2015 2014 Total Pension Liability Service cost $ - $ - $ - $ - $ - $ - $ - $ - Interest on total pension liability 1,162 1,134 1,173 1,197 1,211 1,281 1,311 1,325 Effect of economic/demographic (gains) or losses - 206 (157) - - (836) 286 25 Effect of assumption changes or inputs (134) 633 (88) (44) 116 - 932 - Benefit payments (1,534) (1,537) (1,517) (1,541) (1,528) (1,528) (1,557) (1,548) Net change in total pension liability (506) 436 (590) (388) (201) (1,083) 972 (198) Total pension liability, beginning 18,644 18,208 18,798 19,186 19,387 20,471 19,499 19,697 Total pension liability, ending (a) $ 18,138 $ 18,644 $ 18,208 $ 18,798 $ 19,186 $ 19,388 $ 20,471 $ 19,499 Fiduciary Net Position Employer contributions $ 988 $ 1,033 $ 1,097 $ 1,295 $ 1,118 $ 1,093 $ 1,386 $ 1,229 Investment income net of investment expenses 3,816 439 820 908 1,433 279 283 1,583 Benefit payments (1,534) (1,537) (1,517) (1,541) (1,528) (1,528) (1,557) (1,548) Administrative expenses (7) (5) (5) (5) (4) (4) (6) (20) Net change in plan fiduciary net position 3,263 (70) 394 657 1,019 (160) 106 1,244 Fiduciary net position, beginning 14,225 14,295 13,900 13,243 12,225 12,385 12,279 11,035 Fiduciary net position, ending (b) $ 17,488 $ 14,225 $ 14,295 $ 13,900 $ 13,244 $ 12,225 $ 12,385 $ 12,279 Net pension liability, ending = (a) - (b) $ 650 $ 4,419 $ 3,913 $ 4,898 $ 5,942 $ 7,163 $ 8,086 $ 7,220 Fiduciary net position as a % of total pension liability 96.42% 76.30% 78.51% 73.95% 69.03% 63.05% 60.50% 62.97% This schedule is presented to illustrate the requirement to show information for 10 years. However, prior years are not available. Police Pension Fund Schedule of Employer Contributions Contribution as Fiscal Year Actuarially Actual Contribution a Percentage of Ended Determined Employer Deficiency Covered Covered June 30 Contribution Contribution (Excess) Payroll Payroll 2021 $ 935,006 $ 987,862 $ (52,856) $ - N/A 2020 964,518 1,033,149 (68,631) - N/A 2019 1,050,375 1,097,151 (46,776) - N/A 2018 1,205,092 1,294,750 (89,658) - N/A 2017 1,176,462 1,118,346 58,116 - N/A 2016 1,212,000 1,093,278 118,722 - N/A 2015 1,176,422 1,385,789 (209,367) - N/A 2014 1,155,110 1,229,363 (74,253) - N/A 2013 1,155,796 1,074,599 81,197 - N/A 2012 979,132 668,274 310,858 - N/A Police Pension Fund Schedule of Investment Returns (1) Fiscal year 2017 through 2021 Fiscal year ending June 30 2021 2020 2019 2018 2017 Money-weighted rate of return, net of investment expense 29.77% 3.46% 6.43% 7.16% 12.34% (1) This schedule is presented to illustrate the requirement to show information for 10 years. However, information prior to June 30, 2017 is not available. 161 127

2021 Annual Comprehensive Financial Report for the City of Dover, Delaware Financial Section – Part D – Required Supplementary Information Item 3. Police Pension Fund Net Pension Liability June 30, 2021 June 30, 2020 Total pension liability $ 18,137,819 $ 18,644,121 Fiduciary net position 17,487,622 14,224,901 Net pension liability 650,197 4,419,220 Fiduciary net position as a % of total pension liability 96.42% 76.30% Covered payroll - - Net pension liability as a % of covered payroll N/A N/A The total pension liability was determined by an actuarial valuation as of July 1, 2021 with liabilities projected to the June 30, 2021 measurement date using the following actuarial assumptions, applied to all periods included in the measurement, unless otherwise specified. Any significant changes during this period have been reflected as prescribed by GASB 67 and 68. Actuarial Methods and Significant Assumptions Valuation date July 1, 2021 Actuarial cost method Entry Age Method Amortization method Level Dollars Amortization period Closed Asset valuation method Fair Market Value Actuarial assumptions: Investment rate of return 6.5% Discount rate 6.5% Projected salary increases none, no remaining active participants Includes inflation at 2.2% Automatic Cost of living (retirees) 2.0% Mortality Rates Healthy Participants: PubS-2010 Public Safety Mortality Table with fully generational improvements from 2010 based on Society of Actuaries Scale MP-2020 Survivors: Pub-2010 Continuing Survivors Mortality Table with fully generational improvements from 2010 based on Society of Actuaries Scale MP-2020 Disabled PubS-2010 Public Safety Disabled Retiree Mortality Table with fully generational improvements from 2010 based on Society of Actuaries Scale MP-2020 162 128

2021 Annual Comprehensive Financial Report for the City of Dover, Delaware Financial Section – Part D – Required Supplementary Information Item 3. General Employee Pension Fund Schedule of Changes in Net Pension Liability, Related Ratios (in Thousands) 2021 2020 2019 2018 2017 2016 2015 2014 Total Pension Liability Service cost $ 396 $ 395 $ 424 $ 406 $ 433 $ 401 $ 459 $ 484 Interest on total pension liability 4,178 3,991 3,989 3,827 3,729 3,719 3,861 3,810 Changes of benefit terms - - - 830 - - - - Differences between expected and actual experience - 1,447 - 1,504 41 (267) (422) 111 Effect of assumption changes or inputs (290) 1,260 (279) (99) 1,200 - 1,956 - Benefit payments (4,291) (4,120) (4,033) (3,976) (3,746) (3,718) (3,700) (3,654) Net change in total pension liability (7) 2,973 101 2,492 1,657 135 2,154 751 Total pension liability, beginning 66,031 63,058 62,957 60,465 58,808 58,673 56,519 55,768 Total pension liability, ending (a) $ 66,024 $ 66,031 $ 63,058 $ 62,957 $ 60,465 $ 58,808 $ 58,673 $ 56,519 Fiduciary Net Position Employer contributions $ 2,428 $ 2,606 $ 2,704 $ 4,777 $ 2,877 $ 3,090 $ 3,420 $ 3,473 Member contributions 173 183 190 195 202 202 209 212 Investment income net of investment expenses 12,706 1,550 2,765 2,757 4,351 850 955 4,153 Benefit payments (4,292) (4,120) (4,033) (3,976) (3,746) (3,718) (3,700) (3,654) Administrative expenses (21) (19) (19) (18) (18) (16) (19) (20) Net change in plan fiduciary net position 10,994 200 1,607 3,735 3,666 408 865 4,164 Fiduciary net position, beginning 44,908 44,708 43,100 39,364 35,699 35,291 34,426 30,263 Fiduciary net position, ending (b) $ 55,902 $ 44,908 $ 44,708 $ 43,100 $ 39,365 $ 35,699 $ 35,291 $ 34,427 Net pension liability, ending = (a) - (b) $ 10,122 $ 21,123 $ 18,350 $ 19,857 $ 21,100 $ 23,109 $ 23,382 $ 22,092 Fiduciary net position as a % of total pension liability 84.67% 68.01% 70.90% 68.46% 65.10% 60.70% 60.15% 60.91% Covered payroll $ 5,067 $ 5,219 ** $ 5,557* $ 5,561 $ 5,636 $ 5,504 $ 5,864 $ 5,971 Net pension liability as a % of covered payroll 199.79% 404.77% 330.20% 357.06% 374.39% 419.88% 398.73% 370.03% This schedule is presented to illustrate the requirement to show information for 10 years. However, recalculations of prior years are not required, and if prior years are not reported in accordance with the current GASB standards, they should not be reported. Covered payroll historical adjustments as follows: * 6/30/2019 - $5,557,431 corrected covered payroll. Total pensionable compensation from the plan year ending 6/30/2018 per census data. $5,395,564 times (x) 3.00% based on the assumed rate of annual pay increases for the plan. (Related Ratios FY20 report presentation was $5,396). ** 6/30/2020 - Adjusted covered payroll $5,218,784 represents the total pensionable compensation for plan participants from the plan year ending 6/30/2020, based on the census data that was provided as of 7/1/2020. (Related Ratios FY20 report presentation was $5,067). 163 129

2021 Annual Comprehensive Financial Report for the City of Dover, Delaware Financial Section – Part D – Required Supplementary Information Item 3. General Employee Pension Plan Schedule of Employer Contributions Contribution as Fiscal Year Actuarially Actual Contribution a Percentage of Ended Determined Employer Deficiency Covered Covered June 30 Contribution Contribution (Excess) Payroll Payroll 2021 $ 2,881,048 $ 2,427,721 $ 453,327 $ 5,066,622 47.92% 2020 2,914,587 2,606,067 308,520 5,218,784 49.94% 2019 2,885,737 2,703,583 182,154 5,557,431 48.65% 2018 3,016,283 4,777,466 (1,761,183) 5,561,300 85.91% 2017 2,824,098 2,876,657 (52,559) 5,635,987 51.04% 2016 3,025,982 3,089,409 (63,427) 5,504,387 56.13% 2015 2,983,776 3,419,512 (435,736) 5,864,089 58.31% 2014 2,628,694 3,472,736 (844,042) 5,970,703 58.16% 2013 3,217,964 9,788,571 (6,570,607) 7,076,322 138.33% 2012 3,130,022 3,142,951 (12,929) 7,974,057 39.41% 2011 3,149,493 3,347,728 (198,235) 8,256,751 40.55% There were historical adjustments made to covered payroll for 2019 and 2020, as noted on the Schedule of Changes in Net Pension Liability, Related Ratios (in Thousands). General Employee Pension Plan Schedule of Investment Returns (1) Fiscal year 2017 through 2021 Fiscal year ending June 30 2021 2020 2019 2018 2017 Money-weighted rate of return, net of investment expense 29.71% 3.64% 6.76% 7.12% 12.50% (1) This schedule is presented to illustrate the requirement to show information for 10 years. However, information prior to June 30, 2017 is not available. General Employee Pension Plan Net Pension Liability June 30, 2021 June 30, 2020 Total pension liability $ 66,024,296 $ 66,031,408 Fiduciary net position 55,901,858 44,907,544 Net pension liability 10,122,438 21,123,864 Fiduciary net position as a % of total pension liability 84.67% 68.46% Covered payroll 5,066,622 5,218,784 Net pension liability as a % of covered payroll 199.79% 404.77% The total pension liability was determined by an actuarial valuation as of July 1, 2021 with liabilities projected to the June 30, 2021 measurement date using the following actuarial assumptions, applied to all periods included in the measurement, unless otherwise specified. Any significant changes during this period have been reflected as prescribed by GASB 67 and 68. 164 130

2021 Annual Comprehensive Financial Report for the City of Dover, Delaware Financial Section – Part D – Required Supplementary Information Item 3. Actuarial Methods and Significant Assumptions Valuation date July 1, 2021 Actuarial cost method Entry Age Method Amortization method Level Dollar Amortization period Closed; 15-year – Unfunded AAL Asset valuation method Fair Market Value Actuarial Assumptions: Investment rate of return 6.5% Discount rate 6.5% Projected salary increases 3.0% Includes inflation at 2.2% Mortality Rates Healthy Participants: PubG-2010 General Mortality Table with fully generational improvements from 2010 based on Society of Actuaries Scale MP-2020 Survivors: Pub-2010 Continuing Survivors Mortality Table with fully generational improvements from 2010 based on Society of Actuaries Scale MP-2020 Disabled PubNS-2010 Non-Public Safety Disabled Retiree Mortality Table with fully generational improvements from 2006 based on Society of Actuaries Scale MP-2020 165 131

2021 Annual Comprehensive Financial Report for the City of Dover, Delaware Financial Section – Part D – Required Supplementary Information Item 3. County & Municipal Police and Firefighter's Pension Plan Schedule of the City of Dover's Proportionate Share of the Net Pension Liability Measurement Date 2020 2019 2018 2017 2016 2015 2014 City's proportion of the net pension liability(asset) 8.5117% 8.3407% 8.4242% 8.6629% 9.0042% 9.6070% 9.6334% City's proportionate share of the net pension liability(asset) $ 1,308,109 $ 2,395,686 $ 1,940,156 $ 873,337 $ 1,431,281 $ (524,958) $ (1,042,117) City's covered payroll $ 7,372,815 $ 6,843,159 $ 6,843,159 $ 6,996,159 $ 7,117,770 $ 7,060,453 $ 6,582,053 City's proportionate share of the net pension liability(asset) as a 17.74% 35.01% 28.35% 12.48% 20.11% (7.44%) (15.83%) percentage of its covered payroll Plan fiduciary net position as a percentage of the total pension liability 96.67% 93.25% 94.10% 109.23% 105.59% 101.97% 104.47% GASB Statement No. 68 requires ten years of information to be presented in this table. However, until a full 10-year trend is compiled, the City will present information for those years for which information is available. County & Municipal Police and Firefighter's Pension Plan Schedule of City of Dover's Contributions Fiscal Year Ending 2021 2020 2019 2018 2017 2016 2015 2014 Contractually required contribution $ 1,328,868 $ 1,317,526 $ 1,276,048 $ 1,258,817 $ 944,356 $ 951,199 $ 977,587 $ 933,750 Contributions in relation to the contractually required contribution (1,328,868) (1,317,526) (1,276,048) (1,258,817) (944,356) (951,199) (977,587) (933,750) Contribution deficiency (excess) $ - $ - $ - $ - $ - $ - $ - $ - City's covered payroll $ 7,910,676 $ 7,760,905 $ 7,372,815 $ 6,843,159 $ 6,843,159 $ 7,117,770 $ 7,060,453 $ 6,582,053 Contributions as a percentage of covered payroll 16.80% 16.98% 17.31% 18.40% 13.80% 13.36% 13.85% 14.19% This schedule is presented to illustrate the requirement to show information for 10 years. However, information prior to June 30, 2014 is not available. 132 166

2021 Annual Comprehensive Financial Report for the City of Dover, Delaware Financial Section – Part D – Required Supplementary Information Item 3. OPEB Trust Fund Schedule of Changes in Net OPEB Liability, Related Ratios (In Thousands) Fiscal Year Ending June 30 2021 2020 2019 2018 2017 Total OPEB Liability Service cost $ 1,089 $ 1,120 $ 1,202 $ 1,222 $ 1,655 Interest 4,095 4,211 4,288 4,498 4,682 Net difference between expected and actual experience (5,370) (4,758) (5,152) (6,202) (2,871) Effect of assumption changes or inputs 2,448 483 1,311 - (4,833) Benefit payments (2,867) (2,755) (2,748) (2,704) (2,663) Net change in total OPEB liability (605) (1,699) (1,099) (3,186) (4,030) Total OPEB liability, beginning 63,321 65,020 66,119 69,305 73,335 Total OPEB liability, ending (a) $ 62,716 $ 63,321 $ 65,020 $ 66,119 $ 69,305 Fiduciary Net Position Employer contributions $ 3,504 $ 4,326 $ 5,448 $ 5,722 $ 4,603 Investment income net of investment expenses 12,864 1,871 2,184 2,295 3,074 Benefit payments (2,867) (2,755) (2,748) (2,704) (2,663) Administrative expenses (3) (9) (3) (8) (3) Net change in plan fiduciary net position 13,498 3,433 4,881 5,305 5,011 Fiduciary net position, beginning 42,673 39,240 34,359 29,054 24,043 Fiduciary net position, ending (b) $ 56,171 $ 42,673 $ 39,240 $ 34,359 $ 29,054 Net OPEB liability, ending = (a) - (b) $ 6,545 $ 20,648 $ 25,780 $ 31,760 $ 40,251 Fiduciary net position as a % of total OPEB liability 89.60% 67.40% 60.40% 52.00% 41.90% Covered payroll $ 19,756 $ 20,262 $ 19,578 $ 19,101 $ 17,657 Net OPEB liability as a % of covered payroll 33.10% 101.90% 131.70% 162.20% 210.70% This schedule is presented to illustrate the requirement to show information for 10 years. However, recalculations of prior years are not required, and if prior years are not reported in accordance with the current GASB standards, they should not be reported. 133 167

2021 Annual Comprehensive Financial Report for the City of Dover, Delaware Financial Section – Part D – Required Supplementary Information Item 3. OPEB Trust Fund Schedule of City’s Contributions (In Thousands) For the year ended June 30 2021 2020 2019 2018 2017 Actuarially determined contribution (ADC) $ 2,780 $ 3,190 $ 4,044 $ 4,560 $ 4,644 Contributions in relation to the ADC (3,504) (4,326) (5,447) (5,722) (4,603) Contributions deficiency / (excess) $ (724) $ (1,136) $ (1,403) $ (1,162) $ 41 Covered payroll $ 19,756 $ 20,262 $ 19,580 $ 19,578 $ 19,101 Contributions as a percentage of covered payroll 17.7% 21.4% 27.8% 29.2% 24.1% This schedule is presented to illustrate the requirement to show information for 10 years. However, until a full 10-year trend is compiled, governments should present information for those years for which information is available. Post-Employment Other than Pensions Plan (OPEB) Schedule of Investment Returns (1) Fiscal year 2017 through 2021 Fiscal year ending June 30 2021 2020 2019 2018 2017 Money-weighted rate of return, net of investment expense 30.15% 4.77% 6.10% 7.87% 12.66% (1) This schedule is presented to illustrate the requirement to show information for 10 years. However, information prior to June 30, 2017 is not available. Actuarial Methods and Significant Assumptions The total OPEB liability was determined by an actuarial valuation as of June 30, 2021, with liabilities as of July 1, 2020 are based on an actuarial date of July 1, 2019 projected to the July 1, 2020 measurement date on a “no loss / no gain” basis, using the following actuarial assumptions, applied to all periods included in the measurement, unless otherwise specified: Actuarial cost method Entry Age Normal Level % of Salary Amortization method Level Dollars Remaining amortization period 27 years Asset valuation method Fair Market Value Actuarial Assumptions: Investment rate of return 6.5% Discount rate 6.5% Inflation 2.5% per year included in payroll growth Healthcare cost trend rates Pre-65 Medical / Rx Initial rate of 8.0% decreasing by 0.5% annually to an ultimate rate of 4.5% Post-65 Medical / Rx Initial rate of 8.0% decreasing by 0.5% annually to an ultimate rate of 4.5% Mortality Total Dataset Headcount Weighted Mortality Table fully generational using scale MP-2020 a. Non-Police: SOA Pub-2010 General b. Police: SOA Pub-2010 Public Safety c. Surviving Spouses: SOA Pub-2010 Contingent Survivors 168 134

2021 Annual Comprehensive Financial Report for the City of Dover, Delaware Financial Section – Part D – Required Supplementary Information Item 3. NOTES TO REQUIRED SUPPLEMENTARY INFORMATION GOVERNMENTAL BUDGETS Budgetary Basis of Accounting The City prepares its budget for the General Fund revenue on a modified accrual basis. The expenditures are accounted for when the purchase orders are issued. Encumbrances are established when purchase orders are issued and accounted for as a reservation of fund balance at year-end and are not on a modified accrual basis. The budget is amended in the subsequent year for the outstanding encumbrances of the prior year. The modified accrual basis of accounting is used for the fund financial statements. General Fund actual revenues exceeded the final budget by $2,405,365 with positive variances in 911 fees, permits & other fees, miscellaneous charges, sanitation fees, court of chancery fees, investment income, DEMA State Grant, police pension grant, miscellaneous grants, transfer tax, municipal street aid and police grant funds. The sources of revenues with negative variances are fines and police revenue, interest earnings, library revenues – general & county reimbursement, business licenses, police extra duty fees, franchise fees, rent revenue – garrison farm, interfund service receipts, and civil traffic penalties. Actual total expenditures were lower than budget by $3,334,549 due to lower than budgeted expense across almost all functions a result of personnel reductions through attrition and retirements. The net result is an increase of $6,394,836 to the General Fund ending fund balance. Budget Amendments During this fiscal year, the City Council amended the budget three times. These budget amendment or supplemental appropriation ordinances were primarily for the following purposes: 1. To re-appropriate budget balances for ongoing capital projects. 2. To amend: grant budgets, reserve accounts, and program revenues and expenses for the actual results of the prior fiscal year. 3. To amend revenue and expense accounts based on actual experience during fiscal year 2021. The differences for the year ended June 30, 2021 were as follows: Total revenues- budgetary basis $ 47,405,939 Total expenditures- budgetary basis 43,238,225 Net decrease in fund balance- budgetary basis 4,167,714 Perspective differences Transfer to Reserves 114,765 General Fund Subfund Expense Activity for the Capital Project Fund (2,053,030) Intrafund Transfers to the General Fund- Capital Projects Fund 2,078,100 General Fund Subfund Revenue Activity for the Capital Project Fund 1,741,759 Fair Value of Investments (255,923) Deferred Revenue Adjustment (256,900) Net increase in fund balance - GAAP Basis $ 5,536,485 169 135

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2021 Annual Comprehensive Financial Report for the City of Dover, Delaware Financial Section – Part E – Supplementary Information Item 3. FINANCIAL STATEMENTS GENERAL FUND COMBINING SCHEDULES The General Fund contains a sub-fund for capital projects which is separately budgeted. The combining schedules are presented in the supplementary information. The budgetary comparison for the Governmental Capital Projects Fund has its own separate budget and is presented in this section to show legal compliance. The perspective difference between the basis of budgeting and GAAP is explained in the reconciliation of the basis of budgeting to GAAP. 173 139

2021 Annual Comprehensive Financial Report for the City of Dover, Delaware Financial Section – Part E – Supplementary Information Item 3. The City of Dover, Delaware Combining General Fund Balance Sheet June 30, 2021 General Total General Capital Projects General Fund Fund Funds Assets: Cash and Cash Equivalents $ 6,270,615 $ 4,544,112 $ 10,814,727 Investments 5,111,578 3,563,200 8,674,778 Restricted Investments 19,096 - 19,096 Receivables, net Accounts 436,170 - 436,170 Taxes 102,431 - 102,431 Due from Other Funds 951,375 129,967 1,081,342 Temporary Advances 220,000 - 220,000 Prepaid Items 15,112 - 15,112 Inventory, at Cost 80,432 - 80,432 Total Assets $ 13,206,809 $ 8,237,279 $ 21,444,088 Liabilities: Accounts Payable $ 1,201,649 $ 254,543 $ 1,456,192 Unearned Revenue (5,400) 57,825 52,425 Due to Other Funds 187,025 - 187,025 Other 262,212 - 262,212 Total Liabilities 1,645,486 312,368 1,957,854 Deferred Inflows of Resources: Unavailable revenue 346,068 - 346,068 Total Deferred Inflows of Resources 346,068 - 346,068 Fund Balances: Non-Spendable Inventory and Prepaids 95,545 - 95,545 Library Endowment 5,000 - 5,000 Patronage Stock 16,594 - 16,594 Restricted Library Endowment 2,502 - 2,502 Verizon Cable Franchise 51,394 - 51,394 Committed Contingency 727,467 - 727,467 Parkland Reserve - 1,384,125 1,384,125 Assigned Capital Projects - 6,540,786 6,540,786 Unassigned 10,316,753 - 10,316,753 Total Fund Balances 11,215,255 7,924,911 19,140,166 Total Liabilities and Fund Balances $ 13,206,809 $ 8,237,279 $ 21,444,088 174 140

2021 Annual Comprehensive Financial Report for the City of Dover, Delaware Financial Section – Part E – Supplementary Information Item 3. The City of Dover, Delaware Combining Schedule of Revenues, Expenditures and Changes in Fund Balances of the General Fund (Non-GAAP Basis) For the Year Ended June 30, 2021 General Total General Capital Projects General Fund Fund Funds Revenues Fines $ 442,704 $ - $ 442,704 Library Revenue- General 37,015 - 37,015 Library Revenue County Reimbursement 41,981 - 41,981 Licenses and Permits 2,973,868 - 2,973,868 Sanitation Fees 3,125,135 - 3,125,135 Miscellaneous Services 994,763 52,222 1,046,985 Property Taxes 14,842,464 - 14,842,464 Grants Received 1,071,294 - 1,071,294 Court of Chancery Fees 1,834,620 - 1,834,620 Investment Income (24,358) (3,430) (27,788) Total Revenues 25,339,486 48,792 25,388,278 Expenditures Current: General Government 2,966,941 - 2,966,941 Library Services 1,585,409 23,414 1,608,823 Public Safety and Law Enforcement 19,544,371 1,040,203 20,584,574 Public Works 3,297,951 91,393 3,389,344 Recreational Services 842,002 284,311 1,126,313 Streets and Sanitation Services 3,048,786 568,157 3,616,943 Engineering services 202,985 - 202,985 Financial Administration 2,644,392 12,202 2,656,594 Garage and Stores 1,514,504 33,350 1,547,854 Insurance 832,967 - 832,967 Retiree Health Care 2,045,400 - 2,045,400 Community and Economic Development 225,000 - 225,000 Street Lights 815,961 - 815,961 Debt Service: Principal Retirement 309,734 - 309,734 Interest and Fiscal Charges 156,154 - 156,154 Total Expenditures 40,032,557 2,053,030 42,085,587 Excess (deficiency) of Revenues over Expenditures (14,693,071) (2,004,238) (16,697,309) Other Financing Sources and Uses Proceeds from Sale of Bonds 1,563,000 1,563,000 Reserve Transfers 75,000 (26,026) 48,974 Interfund Transfers 18,785,785 2,078,100 20,863,885 Total Other Financing Sources and Uses 18,860,785 3,615,074 22,475,859 Net Change in Fund Balances 4,167,714 1,610,836 5,778,550 Fund Balances at Beginning of Year 6,468,022 3,221,479 9,689,501 Fund Balances at End of Year $ 10,635,736 $ 4,832,315 $ 15,468,051 Perspective and GAAP (Non-GAAP) Differences: Fair Value of Investment Adjustment $ 72,127 $ 50,254 $ 122,381 Deferred Revenues - Non-spendable (295,565) - (295,565) Inventory & Prepaids - Non-spendable (95,545) - (95,545) Capital Asset - Assigned - (4,882,569) (4,882,569) Unassigned Fund Balance $ 10,316,753 $ - $ 10,316,753 175 141

2021 Annual Comprehensive Financial Report for the City of Dover, Delaware Financial Section – Part E – Supplementary Information Item 3. City of Dover, Delaware Governmental Capital Projects Fund Schedule of Revenues, Expenditures and Changes in Fund Balances Budget & Actual (Non-GAAP Basis) For the Year Ended June 30, 2021 Variance Original Final Positive Budget Budget Actual (Negative) Beginning Balance - Working Capital $ 369,100 $ 369,100 $ 3,221,479 $ 2,852,379 Revenues: Bond Proceeds 1,198,300 1,198,300 1,563,000 364,700 State Grant - Other 1,245,000 1,245,000 - (1,245,000) Transfer from General Fund for Projects 2,078,100 2,078,100 2,078,100 - Transfer from Capital Asset Reserve 346,400 346,400 - (346,400) Transfer from Lodging Tax 110,000 110,000 129,967 19,967 Income from Sale of Assets - - 50,222 50,222 Interest Earnings - - (3,430) (3,430) Miscellaneous Receipts - - 2,000 2,000 Total Revenues 4,977,800 4,977,800 3,819,859 (1,157,941) Total Beginning Balance & Revenues $ 5,346,900 $ 5,346,900 $ 7,041,338 $ 1,694,438 Expenditures: Fire $ 173,300 $ 173,300 $ 151,748 $ 21,552 Library - 19,859 23,414 (3,555) Recreation 395,000 1,062,300 284,311 777,989 Life Safety - 67,500 67,291 209 Code Enforcement - 37,800 37,776 24 Planning 20,400 15,500 3,716 11,784 Inspections 18,600 23,500 - 23,500 Police 912,400 986,800 779,672 207,128 Streets 936,000 3,209,400 568,157 2,641,243 Sanitation 475,200 475,200 - 475,200 Stormwater 1,110,700 1,342,200 91,393 1,250,807 Information Technology 61,600 61,600 12,202 49,398 Facilities Management 700,000 700,000 - 700,000 Engineering 39,600 39,600 1,858 37,742 Purchasing 25,000 325,000 31,492 293,508 Subtotal 4,867,800 8,539,559 2,053,030 6,486,529 Transfers and Miscellaneous Expenses: Transfer to Other Reserve - - 1,116,078 (1,116,078) Bond Issue Costs - - 26,026 (26,026) Total Expenditures 4,867,800 8,539,559 3,195,134 5,344,425 Budget Balance - Working Capital 479,100 (3,192,659) 3,846,204 (7,038,863) Budget Balance & Expenditures $ 5,346,900 $ 5,346,900 $ 7,041,338 $ (1,694,438) Budget Balance - Working Capital $ 3,846,204 Perspective and GAAP (Non-GAAP) Differences: Fair value of investment adjustment 50,254 Assigned to Capital assets 2,644,328 Committed to Parks & Recreation improvements 1,384,125 Total Fund Balances $ 7,924,911 176 142

2021 Annual Comprehensive Financial Report for the City of Dover, Delaware Financial Section – Part E – Supplementary Information Item 3. FINANCIAL STATEMENTS SPECIAL REVENUE FUNDS Special Revenue Funds include the group of funds classified as grant funds, Lodging Tax Fund, and a Realty Transfer Tax Fund. The proceeds from specific revenue sources are restricted to specified expenditure purposes. The City adopts budgets for selected Special Revenue Funds. Combining and individual statements appear in this section. POLICE FEDERAL GRANTS The City of Dover Police Department receives various grants the U.S. Department of Justice for local law enforcement. All federal grant transactions are recorded in this fund. POLICE STATE GRANTS The City of Dover Police Department receives various grants from the State of Delaware for public and highway safety. All state grant transactions are recorded in this fund. LIBRARY GRANTS The City of Dover Public Library receives various grants from the State of Delaware, Kent County, Miscellaneous entities, and the Federal Government. Activities associated with these grants are recorded in this fund. MUNICIPAL STREET AID The State of Delaware has passed legislation to share a portion of Delaware’s motor fuel tax revenue with local municipalities through grants. The amount of the grant the City receives depends on its population and miles of streets maintained. The grant is used for street light expense within the City. CDBG HOUSING GRANTS The City receives a U.S. Department of Housing and Urban Development Entitlement Grant for the Community Development Block Grant Program. This is to provide decent housing, a suitable living environment and expand economic opportunities primarily for people of low and moderate incomes. 177 143

2021 Annual Comprehensive Financial Report for the City of Dover, Delaware Financial Section – Part E – Supplementary Information Item 3. FINANCIAL STATEMENTS SPECIAL REVENUE FUNDS (continued) STATE OF DELAWARE DEPARTMENT OF TRANSPORTATION GRANTS The State of Delaware Department of Transportation grants provide funds for specific street projects in the City. State law provides funds to the State’s elected officials for suburban street aid, which officials can then provide to their respective districts. The City receives these funds for designated street projects and records all transactions for this fund. SUBSTANCE ABUSE PREVENTION GRANT The State of Delaware General Assembly Grant-In-Aid Program provides funds to implement a substance abuse prevention program for at-risk and/or disadvantaged youths in the City of Dover. ELECTRONIC RED-LIGHT SAFETY PROGRAM (ERLSP) The State of Delaware Department of Transportation provides a grant to municipalities that implement the Electronic Red- L i g h t Safety Program. Under this program, the City is granted a portion of the fines collected from drivers who are ticketed for running red lights installed with electronic photo identification equipment within the City limits. LODGING TAX Pursuant to an act of the Delaware Legislature, City Council adopted an ordinance to enact a local lodging tax paid by the occupants of hotels, motels, and tourist homes in the City limits. All lodging tax receipts are reserved and directed toward infrastructure in the City of Dover, which will benefit all Dover residents and businesses. REALTY TRANSFER TAX Delaware Code states that realty transfer tax realized by the City shall be segregated from the general fund and the funds shall be expended solely for the capital and operating costs of public safety services, economic development programs, public works services, capital projects and improvements, infrastructure projects and improvements and debt reduction. 178 144

2021 Annual Comprehensive Financial Report for the City of Dover, Delaware Financial Section – Part E – Supplementary Information Item 3. CITY OF DOVER, DELAWARE SPECIAL REVENUE FUNDS COMBINING BALANCE SHEET JUNE 30, 2021 POLICE POLICE MUNICIPAL CDBG STATE SUBSTANCE REALTY FEDERAL STATE LIBRARY STREET HOUSING D.O.T. ABUSE ERLSP LODGING TRANSFER GRANTS GRANTS GRANTS AID GRANTS GRANTS PREV. GRANT TAX TAX TOTALS ASSETS: Cash $ 60,070 $ 151,700 $ 99,847 $ 2,275 $ 1,241 $ 112,604 $ 111,204 $ - $ 129,776 $ 16,436 $ 685,153 Receivables 10,836 - - - - - - - 191 - 11,027 Due from other funds-charges - - 2,228 - 184,791 - - - - - 187,019 Due from other governments 91,053 - - - 35,109 1,231 - 23,338 - - 150,731 TOTAL ASSETS $ 161,959 $ 151,700 $ 102,075 $ 2,275 $ 221,141 $ 113,835 $ 111,204 $ 23,338 $ 129,967 $ 16,436 $ 1,033,930 LIABILITIES AND FUND BALANCE: Liabilities: Vouchers Payable $ 2,415 $ 8,101 $ 25,034 $ - $ - $ - $ 2,904 $ - $ - $ - $ 38,454 Unearned Revenue 4,028 1,532 - - - - - - - 5,560 Due to other funds-charges 144,407 76,032 - 2,275 - - 10 23,338 129,967 16,436 392,465 Due to other funds-temporary advances - - - 220,000 - - - - - 220,000 Total Liabilities 150,850 84,133 26,566 2,275 220,000 - 2,914 23,338 129,967 16,436 656,479 Fund Balances: Restricted 11,109 67,567 75,509 - 1,141 113,835 108,290 - - - 377,451 Total Fund Balances 11,109 67,567 75,509 - 1,141 113,835 108,290 - - - 377,451 TOTAL LIABILITIES AND FUND BALANCES $ 161,959 $ 151,700 $ 102,075 $ 2,275 $ 221,141 $ 113,835 $ 111,204 $ 23,338 $ 129,967 $ 16,436 $ 1,033,930 179 145

2021 Annual Comprehensive Financial Report for the City of Dover, Delaware Financial Section – Part E – Supplementary Information Item 3. CITY OF DOVER SPECIAL REVENUE FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES YEAR ENDED JUNE 30, 2021 POLICE POLICE MUNICIPAL CDBG STATE SUBSTANCE REALTY FEDERAL STATE LIBRARY STREET HOUSING D.O.T. ABUSE PREV. ERLSP LODGING TRANSFER GRANTS GRANTS GRANTS AID GRANTS GRANTS GRANT TAX TAX TOTALS REVENUES: Grants received $ 211,061 $ 309,121 $ 291,942 $ 797,580 $ 831,331 $ 92,867 $ 40,000 $ - $ - $ - $ 2,573,902 Recreation revenue - - - - - - 20,915 - - - 20,915 Police fines - - - - - - - 267,109 - - 267,109 Taxes - - - - - - - - 129,967 4,832,590 4,962,557 Investment income (loss) 266 - - 246 - 396 - - - 730 1,638 TOTAL REVENUES 211,327 309,121 291,942 797,826 831,331 93,263 60,915 267,109 129,967 4,833,320 7,826,121 EXPENDITURES: Program expenditures 87,326 199,383 248,829 - 832,018 92,377 41,068 - - - 1,501,001 TOTAL EXPENDITURES 87,326 199,383 248,829 - 832,018 92,377 41,068 - - - 1,501,001 Excess (deficiency) of revenues over (under) expenditures 124,001 109,738 43,113 797,826 (687) 886 19,847 267,109 129,967 4,833,320 6,325,120 OTHER FINANCING SOURCES (USES): Operating transfers-in - 1,067 - - - - - - 1,067 Transfers-out (186,180) (42,171) - (797,826) - - - (267,109) (129,967) (4,833,320) (6,256,573) Net Change in fund balances (62,179) 67,567 44,180 - (687) 886 19,847 - - - 69,614 FUND BALANCE AT BEGINNING OF YEAR 73,288 - 31,329 - 1,828 112,949 88,443 - - - 307,837 FUND BALANCE AT END OF YEAR $ 11,109 $ 67,567 $ 75,509 $ - $ 1,141 $ 113,835 $ 108,290 $ - $ - $ - $ 377,451 146 180

2021 Annual Comprehensive Financial Report for the City of Dover, Delaware Financial Section – Part E – Supplementary Information Item 3. CITY OF DOVER, DELAWARE POLICE FEDERAL GRANTS SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET (NON-GAAP BASIS) AND ACTUAL YEAR ENDED JUNE 30, 2021 VARIANCE ORIGINAL FINAL POSITIVE BUDGET BUDGET ACTUAL (NEGATIVE) REVENUES: Beginning balance $ 50,000 $ 129,000 $ 78,991 $ (50,009) Interest earned - - 266 266 Grants received 785,000 635,000 209,388 (425,612) TOTAL REVENUES & BEGINNING BALANCE 835,000 764,000 288,645 (475,355) EXPENDITURES: Program expenses/supplies 585,000 643,600 85,729 (557,871) Telephone/fax 20,000 20,000 - (20,000) Training/Conference/Food/Travel 75,000 19,700 1,598 (18,102) Audit Fees - 1,000 - (1,000) TOTAL EXPENDITURES 680,000 684,300 87,327 (596,973) Other financing uses: Operating transfers - out 155,000 4,300 186,181 181,881 BALANCE CARRIED TO NEXT YEAR $ - $ 75,400 $ 15,137 $ (60,263) Fund Balance - Working Capital 15,137 GAAP Differences Deferred Revenue - non-spendable (4,028) Total Fund Balance $ 11,109 181 147

2021 Annual Comprehensive Financial Report for the City of Dover, Delaware Financial Section – Part E – Supplementary Information Item 3. CITY OF DOVER, DELAWARE POLICE STATE GRANTS SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET (NON-GAAP BASIS) AND ACTUAL YEAR ENDED JUNE 30, 2021 VARIANCE ORIGINAL FINAL POSITIVE BUDGET BUDGET ACTUAL (NEGATIVE) REVENUES: Beginning balance $ - $ - $ - $ - Grants received 212,400 212,400 309,121 96,721 TOTAL REVENUES & BEGINNING BALANCE 212,400 212,400 309,121 96,721 EXPENDITURES: Program expenses/supplies 118,000 118,000 199,383 81,383 Training/Conference/Food/Travel 63,500 63,500 - (63,500) TOTAL EXPENDITURES 181,500 181,500 199,383 17,883 Other financing uses: Operating transfers - out 30,900 30,900 42,171 11,271 BALANCE CARRIED TO NEXT YEAR $ - $ - $ 67,567 $ 67,567 182 148

2021 Annual Comprehensive Financial Report for the City of Dover, Delaware Financial Section – Part E – Supplementary Information Item 3. CITY OF DOVER, DELAWARE LIBRARY GRANTS SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET (NON-GAAP BASIS) AND ACTUAL YEAR ENDED JUNE 30, 2021 VARIANCE ORIGINAL FINAL POSITIVE BUDGET BUDGET ACTUAL (NEGATIVE) REVENUES: Beginning balance $ - $ 18,900 $ 31,329 $ 12,429 Grants received: State 275,000 280,800 288,532 7,732 Grants received: Other - - 2,666 2,666 Grants received: Federal 2,700 1,800 2,275 475 Miscellaneous Revenue - - 1,068 1,068 TOTAL REVENUES & BEGINNING BALANCE 277,700 301,500 325,870 24,370 EXPENDITURES: Program expenditures/supplies (Fed Grant) 2,700 2,700 2,200 (500) Program expenditures/supplies (Other Grant) - - 4,729 4,729 Program expenditures/supplies (State Grant) 28,200 25,500 19,250 (6,250) Office Supplies 23,100 28,000 14,363 (13,637) Printing/duplicating 15,000 13,700 1,145 (12,555) Postage 100 200 65 (135) Books 125,000 128,800 119,323 (9,477) Furniture/Fixtures 5,000 5,500 4,905 (595) Audio visual supplies 67,700 79,000 71,678 (7,322) Training/conference/food/travel 3,000 4,200 974 (3,226) Office equipment repairs 1,900 4,000 644 (3,356) Office equipment lease 2,500 2,100 4,041 1,941 Computer software 3,000 2,500 5,074 2,574 Computer hardware 500 5,300 438 (4,862) TOTAL EXPENDITURES 277,700 301,500 248,829 (52,671) BALANCE CARRIED TO NEXT YEAR $ - $ - $ 77,041 $ 77,041 Fund Balance - Working Capital 77,041 Corrections to balance Deferred Revenue - non-spendable (1,532) Total Fund Balance 75,509 183 149

2021 Annual Comprehensive Financial Report for the City of Dover, Delaware Financial Section – Part E – Supplementary Information Item 3. CITY OF DOVER, DELAWARE MUNICIPAL STREET AID FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET (NON-GAAP BASIS) AND ACTUAL YEAR ENDED JUNE 30, 2021 VARIANCE ORIGINAL FINAL POSITIVE BUDGET BUDGET ACTUAL (NEGATIVE) REVENUES: Beginning balance $ 100 $ 100 $ - $ (100) State Grant - Operations 750,000 750,000 797,580 47,580 Interest Earned - - 246 246 TOTAL REVENUES & BEGINNING BALANCE 750,100 750,100 797,826 47,726 Other financing uses: Operating transfers-out (750,100) (750,100) (797,826) (47,726) BALANCE CARRIED TO NEXT YEAR $ - $ - $ - $ - 184 150

2021 Annual Comprehensive Financial Report for the City of Dover, Delaware Financial Section – Part E – Supplementary Information Item 3. CITY OF DOVER, DELAWARE HOUSING PROGRAMS - CDBG SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET (NON-GAAP BASIS) AND ACTUAL YEAR ENDED JUNE 30, 2021 VARIANCE ORIGINAL FINAL POSITIVE BUDGET BUDGET ACTUAL (NEGATIVE) REVENUES: Beginning balance CDBG $ 2,500 $ 2,013 $ 1,828 $ (185) Federal grant received 332,443 1,021,589 831,331 (190,258) TOTAL REVENUES & BEGINNING BALANCE 334,943 1,023,602 833,159 (190,443) EXPENDITURES: Closing Cost/Down Payment Program 100,000 211,347 190,000 21,347 Dover Interfaith Ministry 61,016 66,690 26,690 40,000 MHDC Emergency Home Repair 40,000 72,911 25,359 47,552 Milford Housing H/O Rehab 25,827 90,568 60,050 30,518 Central DE Hosing Collaboration 20,600 20,600 11,829 8,771 Cares Act COVID19 - 470,082 457,482 12,600 NCALL Research Demo 30,000 30,000 15,000 15,000 Administrative Expense 55,000 59,391 45,608 13,783 TOTAL EXPENDITURES 332,443 1,021,589 832,018 189,571 CDBG BALANCE CARRIED TO NEXT YEAR $ 2,500 $ 2,013 $ 1,141 $ 872 CITY OF DOVER, DELAWARE STATE OF DELAWARE DEPARTMENT OF TRANSPORTATION GRANTS SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET (NON-GAAP BASIS) AND ACTUAL YEAR ENDED JUNE 30, 2021 VARIANCE ORIGINAL FINAL POSITIVE BUDGET BUDGET ACTUAL (NEGATIVE) REVENUES: Beginning balance $ 662,400 $ 662,400 $ 112,949 $ (549,451) Grants received: State 400,000 400,000 92,867 (307,133) Interest earned - - 396 396 TOTAL REVENUES & BEGINNING BALANCE 1,062,400 1,062,400 206,212 (856,188) EXPENDITURES: Program expenditures grant related 750,000 833,400 92,377 (741,023) TOTAL EXPENDITURES 750,000 833,400 92,377 741,023 BALANCE CARRIED TO NEXT YEAR $ 312,400 $ 229,000 $ 113,835 $ (115,165) 185 151

2021 Annual Comprehensive Financial Report for the City of Dover, Delaware Financial Section – Part E – Supplementary Information Item 3. CITY OF DOVER, DELAWARE SUBSTANCE ABUSE PREVENTION PROGRAM SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET (NON-GAAP BASIS) AND ACTUAL YEAR ENDED JUNE 30, 2021 VARIANCE ORIGINAL FINAL POSITIVE BUDGET BUDGET ACTUAL (NEGATIVE) REVENUES: Beginning balance $ 83,700 $ 83,700 $ 88,443 $ 4,743 Grants revenue 28,000 28,000 40,000 12,000 Recreation revenue 33,000 33,000 20,915 (12,085) TOTAL REVENUES & BEGINNING BALANCE 144,700 144,700 149,358 4,658 EXPENDITURES: Temporary help/benefits 68,500 68,500 21,360 (47,140) Program expenditures/supplies 35,000 35,000 19,708 (15,292) TOTAL EXPENDITURES 103,500 103,500 41,068 (62,432) BALANCE CARRIED TO NEXT YEAR $ 41,200 $ 41,200 $ 108,290 $ 67,090 CITY OF DOVER, DELAWARE ELECTRONIC RED LIGHT SAFETY PROGRAM SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN UNRESERVED FUND BALANCE - BUDGET (NON-GAAP BASIS) AND ACTUAL YEAR ENDED JUNE 30, 2021 VARIANCE ORIGINAL FINAL POSITIVE BUDGET BUDGET ACTUAL (NEGATIVE) REVENUES: Beginning balance $ 100 $ 100 $ - $ (100) Grants received: State 445,100 445,100 267,109 (177,991) TOTAL REVENUES & BEGINNING BALANCE 445,200 445,200 267,109 (178,091) EXPENDITURES: Transfer to General Fund 445,100 445,100 267,109 (177,991) TOTAL EXPENDITURES 445,100 445,100 267,109 177,991 BALANCE CARRIED TO NEXT YEAR $ 100 $ 100 $ - $ (100) 186 152

2021 Annual Comprehensive Financial Report for the City of Dover, Delaware Financial Section – Part E – Supplementary Information Item 3. CITY OF DOVER, DELAWARE LODGING TAX FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN UNRESERVED FUND BALANCE - BUDGET (NON-GAAP BASIS) AND ACTUAL YEAR ENDED JUNE 30, 2021 VARIANCE ORIGINAL FINAL POSITIVE BUDGET BUDGET ACTUAL (NEGATIVE) REVENUES: Beginning balance $ - $ - $ - $ - Realty Transfer Taxes 110,000 110,000 129,967 19,967 TOTAL REVENUES & BEGINNING BALANCE 110,000 110,000 129,967 19,967 EXPENDITURES: Transfer to General Fund 110,000 110,000 129,967 19,967 TOTAL EXPENDITURES 110,000 110,000 129,967 19,967 BALANCE CARRIED TO NEXT YEAR $ - $ - $ - $ - CITY OF DOVER, DELAWARE REALTY TRANSFER TAX FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN UNRESERVED FUND BALANCE - BUDGET (NON-GAAP BASIS) AND ACTUAL YEAR ENDED JUNE 30, 2021 VARIANCE ORIGINAL FINAL POSITIVE BUDGET BUDGET ACTUAL (NEGATIVE) REVENUES: Beginning balance $ - $ - $ - $ - Realty Transfer Taxes 1,433,500 1,525,000 4,832,590 3,307,590 Interest earned - - 730 730 TOTAL REVENUES & BEGINNING BALANCE 1,433,500 1,525,000 4,833,320 3,308,320 EXPENDITURES: Transfer to General Fund 1,433,500 1,525,000 4,833,320 3,308,320 TOTAL EXPENDITURES 1,433,500 1,525,000 4,833,320 (3,308,320) BALANCE CARRIED TO NEXT YEAR $ - $ - $ - $ - 187 153

2021 Annual Comprehensive Financial Report for the City of Dover, Delaware Financial Section – Part E – Supplementary Information Item 3. FINANCIAL SCHEDULES PROPRIETARY FUND TYPES ENTERPRISE FUNDS The following schedules pertaining to the major and non-major enterprise funds are not required under GAAP but are included for public review for budgetary compliance. Accordingly, no reconciliation to the GAAP financial statements is provided. MAJOR ENTERPRISE FUND ELECTRIC REVENUE FUND The Electric Revenue Fund accounts for all operating activity of the electric utility. This includes service revenues, investment earnings on operating accounts, direct and indirect operating expenses, purchased power cost, debt service, and transfers to other funds and the Improvement and Extension Fund. The Electric Improvement and Extension Fund is used to account for all capital project and equipment purchases. The City utilizes revenue and expenditure accounts to record capital project receipts, transfers from the operating fund, and project costs. The funds are combined for GAAP reporting purposes with assets capitalized. NON-MAJOR ENTERPRISE FUNDS WATER FUND The Water Fund accounts for all operating activity of the Water Utility. This includes service revenues, investment earnings on operating accounts, direct and indirect operating expenses, debt service, and transfers to other funds and the Improvement and Extension Fund. The Water Improvement and Extension Fund is used to account for all capital project and equipment purchases. The City utilizes revenue and expenditure accounts to record capital project receipts, transfers from the operating fund, and project costs. 188 154

2021 Annual Comprehensive Financial Report for the City of Dover, Delaware Financial Section – Part E – Supplementary Information Item 3. WASTEWATER FUND The Wastewater Fund accounts for all operating activity of the Wastewater Utility. This includes service revenues, investment earnings on operating accounts, direct and indirect operating expenses, debt service, and transfers to the other funds and the Improvement and Extension Fund. The Wastewater Improvement and Extension Fund is used to account for all capital project and equipment purchases. The City utilizes revenue and expenditure accounts to record capital project receipts, transfers from the operating fund, and project costs. The funds are combined for GAAP reporting purposes with assets capitalized. 189 155

2021 Annual Comprehensive Financial Report for the City of Dover, Delaware Financial Section – Part E – Supplementary Information Item 3. CITY OF DOVER, DELAWARE ELECTRIC REVENUE FUND SCHEDULE OF REVENUES AND EXPENSES BUDGET (NON-GAAP BASIS) AND ACTUAL YEAR ENDED JUNE 30, 2021 VARIANCE ORIGINAL FINAL POSITIVE BUDGET BUDGET ACTUAL (NEGATIVE) Beginning Balance - Working Capital $ 10,230,300 $ 10,230,300 $ 16,657,995 $ 6,427,695 Distribution of Earnings - PCA Credit (5,246,100) (5,246,100) (5,007,541) 238,559 4,984,200 4,984,200 11,650,454 6,666,254 REVENUES: Direct base sales 80,417,400 80,417,400 77,487,799 (2,929,601) Rental income 110,000 110,000 61,270 (48,730) Miscellaneous services 530,000 530,000 46,578 (483,422) DEMA Grant - - 210,822 210,822 Utility tax 1,245,100 1,245,100 1,137,022 (108,078) Green Energy 127,000 127,000 127,492 492 Interest earned - operating 157,400 157,400 122,055 (35,345) Transfer from Rate Stabilization 2,500,000 2,500,000 2,500,000 - Transfer from Uncollectible Reserve - - 28,200 28,200 Total Revenues 85,086,900 85,086,900 81,721,238 (3,365,662) TOTAL BEGINNING BALANCE & REVENUES $ 90,071,100 $ 90,071,100 $ 93,371,692 $ 3,300,592 EXPENSES: Power Supply & Generation Hedged Energy $ 19,715,300 $ 19,715,300 $ 17,595,536 $ 2,119,764 Power Supply Management 634,800 634,800 634,800 - Capacity Charges 15,048,100 15,048,100 14,266,256 781,844 Dover Sun Park Energy 3,401,100 3,401,100 2,726,425 674,675 Solar Renewal Energy Credits 384,100 384,100 365,836 18,264 Renewable Energy Credits 614,600 614,600 18,484 596,116 RGGI 12,300 12,300 - 12,300 PJM Charges - Energy 5,871,900 5,871,900 3,261,176 2,610,724 PJM Charges - Transmission & Fees 8,476,800 8,476,800 7,082,694 1,394,106 Total Power Supply 54,159,000 54,159,000 45,951,207 8,207,793 Plant Operations 4,706,100 4,706,100 4,744,085 (37,985) Generation Fuels 488,400 488,400 604,651 (116,251) Capacity Credits (12,191,700) (12,191,700) (12,189,422) (2,278) PJM Spot Market Energy (808,300) (808,300) (649,602) (158,698) PJM Credits (369,400) (369,400) (397,109) 27,709 Total Generation (8,174,900) (8,174,900) (7,887,397) (287,503) Utility Tax 1,245,100 1,245,100 1,137,022 108,078 Administration 707,400 707,400 504,196 203,204 Transmission/Distribution 3,995,600 4,010,600 3,543,138 467,462 Electrical Engineering 1,396,400 1,381,400 1,217,003 164,397 Systems Operations 871,100 871,100 738,110 132,990 Meter Reading 375,300 375,300 364,192 11,108 Contractual Services - Power Supply - - 1,500 (1,500) Legal Expenses 100,000 100,000 39,947 60,053 Storm Expense - - 120,964 (120,964) Provision for Uncollectible 300,000 300,000 300,000 - Retirees Health Care 789,600 789,600 789,600 - Green Energy Payment to DEMEC 127,000 127,000 - 127,000 Bank & CC Fees 330,300 330,300 485,204 (154,904) Interest on Deposits 21,000 21,000 131,675 (110,675) Interfund Service Fees 3,798,900 3,798,900 3,286,547 512,353 Other Appropriations: Electric Capital Project Fund 6,000,000 6,000,000 6,000,000 - General Fund 10,000,000 10,000,000 10,000,000 - Debt Service 1,378,600 1,378,600 1,394,163 (15,563) Green Energy Grant - - 99,200 (99,200) Rate Stabilization Fund 2,000,000 2,000,000 2,000,000 - Transfer to Other Reserve - - 28,301 (28,301) TOTAL EXPENSES 79,420,400 79,420,400 70,244,572 9,175,828 Budget Balance - Working Capital 10,650,700 10,650,700 23,127,120 (12,476,420) TOTAL BUDGET BALANCE & EXPENSES $ 90,071,100 $ 90,071,100 $ 93,371,692 $ (3,300,592) 190 156

2021 Annual Comprehensive Financial Report for the City of Dover, Delaware Financial Section – Part E – Supplementary Information Item 3. CITY OF DOVER, DELAWARE ELECTRIC IMPROVEMENT AND EXTENSION FUND SCHEDULE OF REVENUES AND EXPENSES BUDGET (NON-GAAP BASIS) AND ACTUAL YEAR ENDED JUNE 30, 2021 VARIANCE ORIGINAL FINAL POSITIVE BUDGET BUDGET ACTUAL (NEGATIVE) Beginning Balance - Working Capital $ 15,640,000 $ 16,384,800 $ 20,970,718 $ 4,585,918 TOTAL BEGINNING BALANCES 15,640,000 16,384,800 20,970,718 4,585,918 REVENUES: Transfer from Electric Operating Fund 6,000,000 6,000,000 6,000,000 - Transfer from Depreciation Reserve 1,000,000 1,000,000 - (1,000,000) General Service Billing 400,000 400,000 247,334 (152,666) Miscellaneous Receipts - 27,400 16,548 (10,852) Interest Earnings 218,200 218,200 171,890 (46,310) Total Revenues 7,618,200 7,645,600 6,435,772 (1,209,828) TOTAL BEGINNING BALANCES & REVENUES $ 23,258,200 $ 24,030,400 $ 27,406,490 $ 3,376,090 EXPENSES: Electric Administration $ 360,000 $ 2,604,400 $ 317,794 $ 2,286,606 Electric Generation 1,267,000 1,302,700 113,803 1,188,897 Transmission and Distribution 1,100,000 1,293,100 754,521 538,579 Electrical Engineering 2,968,900 2,706,600 1,364,433 1,342,167 ERP System 500,000 1,244,800 208,590 1,036,210 Total Expenses 6,195,900 9,151,600 2,759,141 6,392,459 Budget Balance - Improvement & Extension Fund 17,062,300 14,878,800 24,647,349 (9,768,549) Total Budget Balances - Working Capital 17,062,300 14,878,800 24,647,349 (9,768,549) TOTAL BUDGET BALANCES & EXPENSES $ 23,258,200 $ 24,030,400 $ 27,406,490 $ (3,376,090) 191 157

2021 Annual Comprehensive Financial Report for the City of Dover, Delaware Financial Section – Part E – Supplementary Information Item 3. CITY OF DOVER, DELAWARE PROPRIETARY FUNDS COMBINING NON-MAJOR ENTERPRISE FUNDS BALANCE SHEET JUNE, 30 2021 Business-type Activities Water Wastewater Total Non-Major Fund Fund Enterprise Funds Assets Current Assets: Cash and Cash Equivalents $ 2,821,528 $ 382,150 $ 3,203,678 Investments 5,596,306 2,957,382 8,553,688 Receivables, Net 625,818 449,263 1,075,081 Due from Other Funds 3 3 6 Inventory 57,603 (2,324) 55,279 Total Current Assets 9,101,258 3,786,474 12,887,732 Non-Current Assets: Restricted Assets Cash 738,463 308,551 1,047,014 Investments 2,126,637 5,665,187 7,791,824 Capital Assets, Not Being Depreciated 1,398,259 812,902 2,211,161 Capital Assets, Net of Depreciation 33,458,409 32,098,137 65,556,546 Total Non-Current Assets 37,721,768 38,884,777 76,606,545 Total Assets 46,823,026 42,671,251 89,494,277 Deferred Outflows of Resources: OPEB Related Deferred Outflows 129,015 80,479 209,494 129,015 80,479 209,494 Liabilities Current Liabilities: Accounts Payable and Accrued Expenses 1,257,786 610,810 1,868,596 Due to Other Funds - Charges 29,161 187,357 216,518 Accrued Interest Payable 60,708 30,668 91,376 Revenue Bonds Payable 575,375 488,428 1,063,803 Liability for Compensated Absences 81,368 42,648 124,016 Total Current Liabilities 2,004,398 1,359,911 3,364,309 Non-Current Liabilities: OPEB Liability 44,667 42,675 87,342 Net Pension Liability 947,260 950,802 1,898,062 Revenue Bonds Payable 7,197,300 5,740,209 12,937,509 Liability for Compensated Absences 124,034 41,606 165,640 Total Non-Current Liabilities 8,313,261 6,775,292 15,088,553 Total Liabilities 10,317,659 8,135,203 18,452,862 Deferred Inflows of Resources: Pension Related Deferred Inflows 962,521 331,894 1,294,415 OPEB Related Deferred Inflows 1,096,516 487,411 1,583,927 Total Deferred Inflows of Resources 2,059,037 819,305 2,878,342 Net Position Net Investment in Capital Assets 27,083,993 26,682,403 53,766,396 Restricted for Capital Construction 2,865,100 5,973,738 8,838,838 Unrestricted 4,626,252 1,141,081 5,767,333 Total Net Position $ 34,575,345 $ 33,797,222 $ 68,372,567 192 158

2021 Annual Comprehensive Financial Report for the City of Dover, Delaware Financial Section – Part E – Supplementary Information Item 3. CITY OF DOVER, DELAWARE PROPRIETARY FUNDS COMBINING SCHEDULE OF REVENUES, EXPENSES AND CHANGES IN FUND NET POSITION - NON-MAJOR ENTERPRISE FUNDS JUNE, 30 2021 Business-type Activities Non-Major Water Wastewater Enterprise Fund Fund Funds Operating Revenues Charges for Services $ 5,777,175 $ 9,302,915 $ 15,080,090 Miscellaneous Services/Income 918,045 202,436 1,120,481 Total Operating Revenues 6,695,220 9,505,351 16,200,571 Operating Expenses Water 396,698 - 396,698 Wastewater - 867,982 867,982 Water Treatment Plant 1,356,366 - 1,356,366 Water/Wastewater Engineering 303,787 131,069 434,856 Kent County Wastewater Treatment - 4,773,265 4,773,265 General Administrative 929,221 721,191 1,650,412 Depreciation 984,279 1,459,540 2,443,819 Retirees Health Care 176,900 81,500 258,400 Total Operating Expenses 4,147,251 8,034,547 12,181,798 Operating Income/Loss 2,547,969 1,470,804 4,018,773 Non-Operating Revenues (Expenses) Interest Earned: Operating Funds 96,986 40,282 137,268 Reserve Funds 56,962 117,793 174,755 Net Increase in Fair Value of Investments (112,766) (122,979) (235,745) Interest and Fiscal Charges (206,879) (148,971) (355,850) Gain (Loss) on Sale of Assets (1,544) 1,854 310 Total Non-Operating Revenue (expenses) (167,241) (112,021) (279,262) Income before Contributions and Transfers 2,380,728 1,358,783 3,739,511 Transfers Out (500,000) (500,000) (1,000,000) Total transfers (500,000) (500,000) (1,000,000) Change in Net Position 1,880,728 858,783 2,739,511 Total Net Position--Beginning 32,694,617 32,938,439 65,633,056 Total Net Position--Ending $ 34,575,345 $ 33,797,222 $ 68,372,567 193 159

2021 Annual Comprehensive Financial Report for the City of Dover, Delaware Financial Section – Part E – Supplementary Information Item 3. CITY OF DOVER, DELAWARE COMBINING SCHEDULE OF CASH FLOWS - NON-MAJOR ENTERPRISE FUNDS JUNE, 30 2021 Business-type Activities Total Non-Major Water Wastewater Enterprise Fund Fund Funds Cash Flows from Operating Activities Receipts from Customers $ 6,498,256 $ 9,429,668 $ 15,927,924 Payments to Suppliers (including Purchased Power) (820,741) (5,530,500) (6,351,241) Payments to Employees (1,519,125) (871,852) (2,390,977) Payments of Personnel Related Costs (173,858) (81,273) (255,131) Internal Activity-Payments from (to) Other Funds (273) (359,442) (359,715) Other Receipts (Payments) including Claims Paid (778,363) (485,808) (1,264,171) Net Cash Provided by (used for) Operating Activities 3,205,896 2,100,793 5,306,689 Cash Flows from Noncapital Financing Activities Transfers Out (500,000) (500,000) (1,000,000) Net Cash Used for Noncapital Financing Activities (500,000) (500,000) (1,000,000) Cash Flows from Capital and Related Financing Activities Acquisition and Construction of Capital Assets (2,192,341) (1,313,466) (3,505,807) Proceeds of issuance of debt - 674,936 674,936 Bond Issuance Costs - (3,334) (3,334) Principal Paid on Revenue Bond Maturities (561,596) (448,157) (1,009,753) Interest Paid on Capital Debt (213,955) (154,669) (368,624) Net Cash Used for Capital and Related Financing Activities (2,967,892) (1,244,690) (4,212,582) Cash Flows from Investing Activities Interest on Investments 96,986 40,282 137,268 Redemption of Investment Securities 588,001 250,922 838,923 Purchase of Investment Securities (347,864) (242,901) (590,765) Interest on Restricted Cash 56,961 117,793 174,754 Net Cash Provided by (used for) Investing Activities 394,084 166,096 560,180 Net Increase/Decrease in Cash and Cash Equivalents 132,088 522,199 654,287 Cash and cash equivalents July 1 (incl. $497,618 for Non-Major Enterprise Funds reported in restricted accounts 3,427,903 168,502 3,596,405 Cash and cash equivalents June 30 (incl. $1,047,014 for Non-Major Enterprise Funds reported in restricted accounts $ 3,559,991 $ 690,701 $ 4,250,692 Reconciliation of Operating Income to Net Cash Provided by (Used for) Operating Activities: Operating Income $ 2,547,969 $ 1,470,804 $ 4,018,773 Adjustments to Reconcile Operating Income to Net Cash provided by (Used for) Operating Activities: Depreciation Expense 984,279 1,459,540 2,443,819 Effect of Changes in Operating Assets and Liabilities: Receivables (197,030) (75,760) (272,790) Due from other funds 66 77 143 Due from other funds - Advances 400,000 - 400,000 Inventory 15,203 1,620 16,823 Prepaid items 147 147 294 Deferred outflow of resources Pension 251,134 81,129 332,263 Deferred outflow of resources OPEB (76,799) (41,919) (118,718) Accounts payable and accrued expenses 365,002 (70,551) 294,451 Due to other funds (196,541) 50,012 (146,529) Due to other funds - Advances - (400,000) (400,000) Liability for Compensated Absences 26,200 28,651 54,851 Net OPEB Liability (803,914) (437,217) (1,241,131) Net pension liability (1,439,095) (512,735) (1,951,830) Deferred inflow of resources Pension 934,045 331,894 1,265,939 Deferred inflow of resources OPEB 395,230 215,101 610,331 Net Cash Provided by Operating Activities $ 3,205,896 $ 2,100,793 $ 5,306,689 Non-Cash Investing, Capital and Financing Activities: Change in Fair Value of Investments $ (112,766) $ (122,979) $ (235,745) 194 160

2021 Annual Comprehensive Financial Report for the City of Dover, Delaware Financial Section – Part E – Supplementary Information Item 3. CITY OF DOVER, DELAWARE WATER FUND SCHEDULE OF REVENUES AND EXPENSES BUDGET (NON-GAAP BASIS) AND ACTUAL YEAR ENDED JUNE 30, 2021 VARIANCE ORIGINAL FINAL POSITIVE BUDGET BUDGET ACTUAL (NEGATIVE) Beginning Balance - Water $ 1,218,900 $ 1,218,900 $ 1,548,586 $ 329,686 TOTAL BEGINNING BALANCES 1,218,900 1,218,900 1,548,586 329,686 REVENUES: Water Services 6,231,700 6,231,700 5,777,175 (454,525) Miscellaneous service fees 67,800 139,600 223,204 83,604 Water tank space leasing 420,100 420,100 529,789 109,689 Interest - Water 34,000 34,000 9,455 (24,545) Water Impact Fees 570,000 570,000 172,127 (397,873) Total Revenues 7,323,600 7,395,400 6,711,750 (683,650) TOTAL BEGINNING BALANCES & REVENUES $ 8,542,500 $ 8,614,300 $ 8,260,336 $ (353,964) EXPENSES: Engineering & Inspection $ 397,800 $ 441,400 $ 392,313 $ 49,087 Water Department 669,800 669,800 552,314 117,486 Water Treatment Plant 2,221,600 2,066,300 1,812,660 253,640 Interfund Service Fees 1,033,200 1,033,200 880,272 152,928 Retirees Health Care 176,900 176,900 176,900 - Debt Service - Water 762,800 762,800 778,168 (15,368) Bank & Credit Card Fees 20,000 20,000 22,748 (2,748) Transfer To: Water Improvement and Extension 1,300,000 1,455,300 1,622,080 (166,780) General Fund from Water 500,000 500,000 500,000 - Total Expenses 7,082,100 7,125,700 6,737,455 388,245 Budget Balance - Water 1,460,400 1,488,600 1,522,881 (34,281) Total Budget Balances - Working Capital 1,460,400 1,488,600 1,522,881 (34,281) TOTAL BUDGET BALANCES & EXPENSES $ 8,542,500 $ 8,614,300 $ 8,260,336 $ 353,964 195 161

2021 Annual Comprehensive Financial Report for the City of Dover, Delaware Financial Section – Part E – Supplementary Information Item 3. CITY OF DOVER, DELAWARE WATER IMPROVEMENT & EXTENSION FUND SCHEDULE OF REVENUES AND EXPENSES BUDGET (NON-GAAP BASIS) AND ACTUAL YEAR ENDED JUNE 30, 2021 VARIANCE ORIGINAL FINAL POSITIVE BUDGET BUDGET ACTUAL (NEGATIVE) Beginning Balance -Water $ 3,794,200 $ 4,618,200 $ 5,292,564 $ 674,364 TOTAL BEGINNING BALANCES 3,794,200 4,618,200 5,292,564 674,364 REVENUES: Interest earnings 50,000 50,000 87,531 37,531 Income from sale of assets - - 13,415 13,415 Transfer from Operating Fund - Water 1,300,000 1,455,300 1,622,080 166,780 Transfer from Water Impact Fee Reserve 39,200 70,100 - (70,100) Total Revenues 1,389,200 1,575,400 1,723,026 147,626 TOTAL BEGINNING BALANCES & REVENUES $ 5,183,400 $ 6,193,600 $ 7,015,590 $ 821,990 EXPENSES: Water $ 1,205,500 $ 1,647,200 $ 1,368,645 $ 278,555 Water Engineering and Inspection 20,400 20,400 929 19,471 Water Treatment Plant - 568,500 882,221 (313,721) Total Expenses 1,225,900 2,236,100 2,251,795 (15,695) Budget Balance - Water 3,957,500 3,957,500 4,763,795 (806,295) Total Budget Balances - Working Capital 3,957,500 3,957,500 4,763,795 (806,295) TOTAL BUDGET BALANCES & EXPENSES $ 5,183,400 $ 6,193,600 $ 7,015,590 $ (821,990) 196 162

2021 Annual Comprehensive Financial Report for the City of Dover, Delaware Financial Section – Part E – Supplementary Information Item 3. CITY OF DOVER, DELAWARE WASTEWATER FUND SCHEDULE OF REVENUES AND EXPENSES BUDGET (NON-GAAP BASIS) AND ACTUAL YEAR ENDED JUNE 30, 2021 VARIANCE ORIGINAL FINAL POSITIVE BUDGET BUDGET ACTUAL (NEGATIVE) Beginning Balance - Wastewater $ 47,900 $ 47,900 $ 743,117 695,217 TOTAL BEGINNING BALANCES 47,900 47,900 743,117 695,217 REVENUES: Wastewater Services 4,467,500 4,467,500 4,232,183 (235,317) Wastewater Treatment Services 3,275,100 3,275,100 3,122,477 (152,623) Groundwater inflow adjustment 2,040,400 2,040,400 1,948,255 (92,145) Miscellaneous service fees 1,300 1,300 35,769 34,469 Interest - Wastewater 20,000 20,000 1,870 (18,130) Income from Sale of Assets - - 14,971 14,971 Wastewater Impact Fees 480,000 480,000 151,696 (328,304) Total Revenues 10,284,300 10,284,300 9,507,221 (777,079) TOTAL BEGINNING BALANCES & REVENUES $ 10,332,200 $ 10,332,200 $ 10,250,338 $ (81,862) EXPENSES: Engineering & Inspection $ 288,300 $ 288,300 $ 244,159 $ 44,141 Wastewater Department 1,144,200 1,144,200 996,439 147,761 Debt Service - Wastewater 659,900 659,900 589,659 70,241 Retirees Health Care 81,500 81,500 81,500 - Kent County Treatment Charge 4,302,900 4,302,900 4,773,265 (470,365) Interfund Service Fees 782,000 782,000 673,669 108,331 Bank & Credit Card Fees 10,000 10,000 7,739 2,261 Bond Issue Cost - - 3,334 (3,334) Storm Expense - - 11,133 (11,133) Transfer To: General Fund from Wastewater 500,000 500,000 500,000 - Wastewater Improvement and Extension 1,200,000 1,200,000 1,200,000 - Total Expenses 8,968,800 8,968,800 9,080,897 (112,097) Budget Balance - Wastewater 1,363,400 1,363,400 1,169,441 193,959 Total Budget Balances - Working Capital 1,363,400 1,363,400 1,169,441 193,959 TOTAL BUDGET BALANCES & EXPENSES $ 10,332,200 $ 10,332,200 $ 10,250,338 $ 81,862 197 163

2021 Annual Comprehensive Financial Report for the City of Dover, Delaware Financial Section – Part E – Supplementary Information Item 3. CITY OF DOVER, DELAWARE WASTEWATER IMPROVEMENT & EXTENSION FUND SCHEDULE OF REVENUES AND EXPENSES BUDGET (NON-GAAP BASIS) AND ACTUAL YEAR ENDED JUNE 30, 2021 VARIANCE ORIGINAL FINAL POSITIVE BUDGET BUDGET ACTUAL (NEGATIVE) Beginning Balance -Wastewater $ 242,100 $ 1,243,700 $ 750,155 (493,545) TOTAL BEGINNING BALANCES 242,100 1,243,700 750,155 (493,545) REVENUES: State Loan Fund - Wastewater - 578,600 674,936 96,336 Transfer from Operating Fund - Wastewater 1,200,000 1,200,000 1,200,000 - Transfer from Wastewater Impact Fee Reserve 31,600 31,600 - (31,600) Interest earnings 10,000 10,000 38,412 28,412 Income from sale of assets - - (468) (468) Total Revenues 1,241,600 1,820,200 1,912,880 92,680 TOTAL BEGINNING BALANCES & REVENUES $ 1,483,700 $ 3,063,900 $ 2,663,035 $ (400,865) EXPENSES: Wastewater Engineering 14,000 14,000 929 13,071 Wastewater 1,085,000 2,665,200 1,461,269 1,203,931 Total Expenses 1,099,000 2,679,200 1,462,198 1,217,002 Budget Balance - Wastewater 384,700 384,700 1,200,837 (816,137) Total Budget Balances - Working Capital 384,700 384,700 1,200,837 (816,137) TOTAL BUDGET BALANCES & EXPENSES $ 1,483,700 $ 3,063,900 $ 2,663,035 $ 400,865 #REF! #REF! #REF! #REF! 198 164

2021 Annual Comprehensive Financial Report for the City of Dover, Delaware Financial Section – Part E – Supplementary Information Item 3. FINANCIAL SCHEDULES PROPRIETARY FUND TYPES INTERNAL SERVICE FUNDS WORKERS’ COMPENSATION INSURANCE FUND The City has created this fund to account for the revenues and expenses related to a self-insured Workers’ Compensation Fund. The revenues are received from the City's various funds. These funds contribute to the Workers’ Compensation Fund an amount based on salaries at a pre- determined assessment rate. Claims paid, reinsurance cost and third-party administrator's fees are charged to this fund. Budgetary schedule is included for public review of budgetary compliance. 199 165

2021 Annual Comprehensive Financial Report for the City of Dover, Delaware Financial Section – Part E – Supplementary Information Item 3. CITY OF DOVER, DELAWARE WORKERS' COMPENSATION SCHEDULE OF REVENUES AND EXPENSES BUDGET (NON-GAAP BASIS) AND ACTUAL YEAR ENDED JUNE 30, 2021 VARIANCE ORIGINAL FINAL POSITIVE BUDGET BUDGET ACTUAL (NEGATIVE) OPERATING REVENUES: Beginning Balance $ 1,540,000 $ 2,450,500 $ 2,450,486 $ (14) Interest Earned 22,500 31,500 30,501 (999) City Contribution 990,100 880,100 919,173 39,073 Insurance Refund - - - - Miscellaneous Revenue - - - - OPERATING EXPENSES: Program Expenses $ 560,000 $ 394,000 $ 175,015 $ 218,985 Contractual Services 20,000 22,100 15,961 6,139 Insurance 130,000 110,800 145,285 (34,485) Bank Fees - - - - Transfer to General Fund for Retirees - - - TOTAL EXPENSES $ 749,000 $ 560,400 $ 369,772 $ 190,628 BUDGET BALANCE - CARRY FORWARD $ 1,803,600 $ 2,801,700 $ 3,030,388 $ (228,688) 200 166

2021 Annual Comprehensive Financial Report for the City of Dover, Delaware Financial Section – Part E – Supplementary Information Item 3. FINANCIAL STATEMENTS FIDUCIARY FUND TYPES PENSION AND OTHER EMPLOYEE BENEFIT TRUSTS POLICE PENSION, EMPLOYEE PENSION, AND OTHER POST-EMPLOYMENT BENEFIT (OPEB) These trust funds account for resources that are required to be held in trust for the members and beneficiaries of the City’s defined benefit pension plans, defined contribution plan, and other post-employment benefit plan. City of Dover, Delaware Combining Statement of Net Position Fiduciary Funds Police Employee OPEB Total Pension and Pension Pension Trust OPEB Benefit Trust Trust Fund Trust Funds Assets Cash and Cash Equivalents $ 2,727,182 $ 5,937,711 $ 2,503,555 $ 11,168,448 Investments at Fair Value - Mutual Funds 14,760,440 49,965,406 53,894,800 118,620,646 Total Assets $ 17,487,622 $ 55,903,117 $ 56,398,355 $ 129,789,094 Liabilities Vouchers Payable & Deposit Payable - 1,259 227,130 228,389 Total Liabilities - 1,259 227,130 228,389 Net Position Net Position Restricted for Pensions 17,487,622 55,901,858 73,389,480 Net Position Restricted for Health Benefits 56,171,225 56,171,225 Total Net Position $ 17,487,622 $ 55,901,858 $ 56,171,225 $ 129,560,705 The notes to financial statements are an integral part of this statement. 201 167

2021 Annual Comprehensive Financial Report for the City of Dover, Delaware Financial Section – Part E – Supplementary Information Item 3. City of Dover, Delaware Combining Statement of Changes in Net Position Fiduciary Funds For the Year Ended June 30, 2021 Police Employees' OPEB Pension and Other Pension Pension Trust Postemployment Trust Trust Fund Benefit Trust Funds Additions: Net Investment Income $ 3,815,763 $ 12,705,909 $ 12,864,455 $ 29,386,127 City's Contribution-Payroll Based - 2,427,721 410,488 2,838,209 City's Contribution-Lump Sum 435,100 - 3,093,400 3,528,500 Employee Contribution - 172,840 - 172,840 State Grants 552,277 - - 552,277 Other 485 - - 485 Total Additions 4,803,625 15,306,470 16,368,343 36,478,438 Deductions: Benefit Payments 1,534,080 4,291,562 2,866,652 8,692,294 General Administration 6,824 20,594 3,000 30,418 Total Deductions 1,540,904 4,312,156 2,869,652 8,722,712 Change in Net Position 3,262,721 10,994,314 13,498,691 27,755,726 Net Position - Beginning 14,224,901 44,907,544 42,672,534 101,804,979 Net Position - Ending $ 17,487,622 $ 55,901,858 $ 56,171,225 $ 129,560,705 202 168

2021 Annual Comprehensive Financial Report for the City of Dover, Delaware Financial Section – Part E – Supplementary Information Item 3. FINANCIAL STATEMENTS FIDUCIARY FUND TYPES CUSTODIAL FOURTH OF JULY CELEBRATION COMMITTEE The Fourth of July Celebration Committee is designed to provide recreation enjoyment and educational events commemorating the birth of our nation. DOVER DAYS CELEBRATION COMMITTEE The Dover Days Celebration Committee was established to fund the annual Old Dover Days Festival; one of Delaware’s largest and longest-running free events dedicated to promoting our state’s heritage and culture. City of Dover, Delaware Combining Statement of Changes in Net Position Custodial Funds For the Year Ended June 30, 2021 4th of July Dover Day's Total Custodial Celebration Celebration Funds Additions: Gifts/Donations $ 14,917 $ 18,500 $ 33,417 Interest Income 22 - 22 Total Additions 14,939 18,500 33,439 Deductions: Supplies/Materials 419 231 650 Bank Fees 218 - 218 Contractual Services - 6,126 6,126 Total Deductions 637 6,357 6,994 Change in Net Position 14,302 12,143 26,445 Net Position - Beginning 11,287 12,954 24,241 Net Position - Ending $ 25,589 $ 25,097 $ 50,686 203 169

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2021 Annual Comprehensive Financial Report for the City of Dover, Delaware Item 3. STATISTICAL SECTION This section of the City of Dover’s Annual Comprehensive Financial Report represents detailed information as a context for understanding what the statements, note disclosures, and required supplementary information says about the Government’s overall financial health. 205 171

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2021 Annual Comprehensive Financial Report for the City of Dover, Delaware Item 3. STATISTICAL SECTION This part of the City of Dover’s comprehensive annual financial report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information says about the government’s overall financial health. FINANCIAL TRENDS These schedules contain trend information to help the reader understand how the City’s financial performance and well-being have changed over time. REVENUE CAPACITY These schedules contain information to help the reader assess the City’s most significant local revenue source, property tax. DEBT CAPACITY These schedules present information to help the reader assess the affordability of the City’s current levels of outstanding debt and the City’s ability to issue additional debt in the future. DEMOGRAPHIC AND ECONOMIC INFORMATION These schedules offer demographic and economic indicators to help the reader understand the environment within which the City’s financial activities take place. OPERATING INFORMATION These schedules contain service and infrastructure data to help the reader understand how the information in the City’s financial report relates to the services the City provides and the activities it performs. Sources: Unless otherwise noted, the information in these schedules is derived from the comprehensive annual financial reports for the relevant year. 207 173

2021 Annual Comprehensive Financial Report for the City of Dover, Delaware Statistical Section Item 3. Table 1 City of Dover, Delaware Net Position by Component Last Ten Fiscal Years (Accrual basis of accounting) Fiscal Year 2021 2020 2019 2018 2017 2016 2015 2014 2013 2012 Governmental Activities Net investment in capital assets $ 52,937,055 $ 56,266,299 $ 54,309,740 $ 53,239,906 $ 54,350,984 $ 54,325,174 $ 51,485,408 $ 50,738,483 $ 49,577,021 $ 49,642,124 Restricted 431,347 346,826 342,285 961,101 306,474 932,728 556,553 612,054 721,682 482,780 Unrestricted (8,310,569) (23,727,242) (29,348,340) (36,772,282) (44,105,399) (22,214,284) (27,947,709) (7,142,570) (4,791,553) (6,759,433) Total governmental activities net position 45,057,833 32,885,883 25,303,685 17,428,725 10,552,059 33,043,618 24,094,252 44,207,967 45,507,150 43,365,471 Business-type activities Net investment in capital assets 101,595,410 104,913,375 109,497,296 111,894,357 110,779,002 110,647,045 108,565,514 101,670,949 100,079,972 98,303,263 Restricted 74,090,261 70,998,294 54,353,211 46,693,086 44,176,110 37,026,527 36,751,850 36,123,755 34,665,736 33,836,315 Unrestricted 30,298,138 20,778,570 17,850,066 22,683,806 21,086,446 26,876,166 21,732,221 36,098,998 39,534,763 33,947,753 Total business-type activities net position 205,983,809 196,690,239 181,700,573 181,271,249 176,041,558 174,549,738 167,049,585 173,893,702 174,280,471 166,087,331 Primary government Net investment in capital assets 154,532,465 161,179,674 163,807,036 165,134,263 165,129,986 164,972,219 160,050,922 152,409,432 149,656,993 147,945,387 Restricted 74,521,608 71,345,120 54,695,496 47,654,187 44,482,584 37,959,255 37,308,403 36,735,809 35,387,418 34,319,095 Unrestricted 21,987,569 (2,948,672) (11,498,274) (14,088,476) (23,018,953) 4,661,882 (6,215,488) 28,956,428 34,743,210 27,188,320 Total primary government net position $ 251,041,642 $ 229,576,122 $ 207,004,258 $ 198,699,974 $ 186,593,617 $ 207,593,356 $ 191,143,837 $ 218,101,669 $ 219,787,621 $ 209,452,802 NOTE The fiscal years prior to 2015 show fund balances as they were reported prior to GASB No. 68. The Change in Net Position for fiscal 2017 includes a prior period adjustment for the OPEB Liability associated with GASB No. 74 & 75. 174 208

2021 Annual Comprehensive Financial Report for the City of Dover, Delaware Statistical Section Item 3. Table 2 City of Dover, Delaware Changes in Net Position Last Ten Fiscal Years (Accrual basis of accounting) Fiscal Year 2021 2020 2019 2018 2017 2016 2015 2014 2013 2012 Expenses Governmental activities: General government $ 3,620,325 $ 4,190,000 $ 3,296,331 $ 3,443,595 $ 3,456,943 $ 4,648,999 $ 3,374,955 $ 1,288,977 $ 1,474,045 $ 1,180,327 Public safety 15,074,030 19,670,023 17,597,828 17,441,023 14,947,553 19,919,050 21,336,042 19,219,986 17,989,463 17,638,304 Public works 7,981,115 4,464,952 6,183,329 7,736,355 6,942,760 7,381,557 3,848,402 6,594,829 6,099,484 8,135,172 Library and recreation 2,613,161 3,736,306 3,211,586 3,106,031 2,866,441 2,183,802 3,079,426 2,942,800 2,313,048 2,377,363 Community and economic development 1,023,086 531,306 461,983 513,857 449,356 551,879 444,474 676,554 939,966 773,208 Central services 641,781 626,259 521,020 589,846 473,498 483,426 443,072 512,586 454,816 469,385 Financial administration 911,780 886,495 894,670 964,051 746,714 1,249,012 1,247,976 1,368,048 1,122,830 1,146,524 Other post-employment benefits - - - - - - - 3,348,267 5,119,778 6,534,630 Interest on long-term debt 180,781 132,711 178,514 129,723 118,275 118,565 174,912 122,812 114,785 90,161 Total governmental activities expenses 32,046,059 34,238,052 32,345,262 33,924,481 30,001,540 36,536,290 33,949,259 36,074,859 35,628,215 38,345,074 Business-type activities Non-major enterprise funds 12,537,648 12,198,697 12,604,448 11,728,740 11,416,394 11,925,299 11,322,958 11,397,992 10,905,358 11,068,607 Electric 63,109,318 64,054,118 68,459,581 72,553,319 62,992,850 61,054,151 67,562,077 74,481,048 74,595,585 77,625,673 Total business-type activities 75,646,966 76,252,815 81,064,029 84,282,059 74,409,244 72,979,450 78,885,035 85,879,040 85,500,943 88,694,280 Total primary government expenses 107,693,025 110,490,867 113,409,291 118,206,540 104,410,784 109,515,740 112,834,294 121,953,899 121,129,158 127,039,354 Program Revenues Governmental activities: Charges for services: General government 2,607,533 2,571,127 2,520,022 2,456,576 2,362,123 2,336,389 2,116,233 2,137,574 2,463,437 4,043,168 Public safety 3,822,417 3,636,312 4,510,464 5,367,450 5,171,989 4,920,783 4,558,200 4,676,162 4,240,847 4,803,827 Public works 3,125,135 3,080,960 3,068,399 3,714,187 2,514,645 2,527,478 2,578,892 2,595,648 2,624,877 1,903,623 Library and recreation 146,402 457,674 612,737 640,061 602,873 667,996 696,179 699,622 656,001 632,824 Operating grants and contributions 3,453,829 3,587,007 2,441,900 2,190,146 2,025,522 2,759,367 2,298,936 2,159,616 2,914,696 2,654,051 Capital grants and contributions 191,367 571,817 372,136 344,561 360,538 675,784 166,379 1,226,559 2,107,444 6,292,303 Total governmental activities program revenues 13,346,683 13,904,897 13,525,658 14,712,981 13,037,690 13,887,797 12,414,819 13,495,181 15,007,302 20,329,796 (Continued) 175 209

2021 Annual Comprehensive Financial Report for the City of Dover, Delaware Statistical Section Item 3. (Table 2 Continued - Changes in Net Position) Fiscal Year 2021 2020 2019 2018 2017 2016 2015 2014 2013 2012 Program Revenues Business-type activities: Charges for services: Non-major enterprise funds 16,200,881 14,907,038 16,017,306 16,319,193 16,054,096 14,976,213 14,875,806 13,268,213 13,387,706 13,775,833 Electric 79,820,816 81,488,206 83,709,415 83,883,757 83,655,870 80,695,910 79,802,674 79,489,192 90,685,693 93,529,401 Capital contributions - 1,409,145 - - 1,201,963 44,955 1,516,932 401,947 - 441,285 Total business-type activities program revenues 96,021,697 97,804,389 99,726,721 100,202,950 100,911,929 95,717,078 96,195,412 93,159,352 104,073,399 107,746,519 Total primary government program revenues 109,368,380 111,709,286 113,252,379 114,915,931 113,949,619 109,604,875 108,610,231 106,654,533 119,080,701 128,076,315 Net (expense)/revenue: Governmental activities (18,699,376) (20,333,155) (18,819,604) (19,211,500) (16,963,850) (22,648,493) (21,534,440) (22,579,678) (20,620,913) (18,015,278) Business-type activities 20,374,731 21,551,574 18,662,692 15,920,891 26,502,685 22,737,628 17,310,377 7,280,312 18,572,456 19,052,239 Total primary government net revenue (expense) 1,675,355 1,218,419 (156,912) (3,290,609) 9,538,835 89,135 (4,224,063) (15,299,366) (2,048,457) 1,036,961 General Revenues and Other Changes in Net Position Governmental activities: Property taxes 14,892,966 14,796,554 13,448,025 13,065,098 12,895,597 12,846,774 11,176,763 11,094,479 11,126,395 11,050,198 Transfer taxes 4,962,557 1,825,438 1,637,194 2,022,165 1,634,707 2,191,915 1,713,505 1,543,626 1,107,686 1,373,103 Investment earnings 15,803 551,771 809,345 100,903 132,228 263,667 92,479 142,390 36,793 141,925 Transfers 11,000,000 10,741,590 10,800,000 10,900,000 10,875,000 16,295,503 10,500,000 8,500,000 10,491,718 8,300,796 Total governmental activities 30,871,326 27,915,353 26,694,564 26,088,166 25,537,532 31,597,859 23,482,747 21,280,495 22,762,592 20,866,022 Business-type activities: Investment earnings 399,058 4,179,682 3,752,939 208,800 379,160 1,058,028 544,624 832,919 112,402 630,420 Loss on Sale of Assets (480,219) - - - - - - - - - Transfers (11,000,000) (10,741,590) (10,800,000) (10,900,000) (10,875,000) (16,295,503) (10,500,000) (8,500,000) (10,491,718) (8,300,796) Total business-type activities (11,081,161) (6,561,908) (7,047,061) (10,691,200) (10,495,840) (15,237,475) (9,955,376) (7,667,081) (10,379,316) (7,670,376) Total primary government 19,790,165 21,353,445 19,647,503 15,396,966 15,041,692 16,360,384 13,527,371 13,613,414 12,383,276 13,195,646 Change in Net Position Government activities 12,171,950 7,582,198 7,874,960 6,876,666 8,573,682 8,949,366 1,948,307 (1,299,183) 2,141,679 2,850,744 Business-type activities 9,293,570 14,989,666 11,615,631 5,229,691 16,006,845 7,500,153 7,355,001 (386,769) 8,193,140 11,381,863 Total primary government $ 21,465,520 $ 22,571,864 $ 19,490,591 $ 12,106,357 $ 24,580,527 $ 16,449,519 $ 9,303,308 $ (1,685,952) $ 10,334,819 $ 14,232,607 NOTE The Change in Net Position for fiscal 2015 includes a prior period adjustment for the Net Pension Liability associated with GASB No. 68. The Change in Net Position for fiscal 2017 includes a prior period adjustment for the OPEB Liability associated with GASB No. 74 & 75. 176 210

2021 Annual Comprehensive Financial Report for the City of Dover, Delaware Statistical Section Item 3. Table 3 City of Dover, Delaware Fund Balances of Governmental Funds Last Ten Fiscal Years (Modified accrual basis of accounting) Fiscal Year 2021 2020 2019 2018 2017 2016 2015 2014 2013 2012 General fund Non-spendable $ 117,139 $ 212,467 $ 234,974 $ 259,258 $ 187,294 $ 195,134 $ 202,620 $ 207,884 $ 227,457 $ 198,175 Restricted 53,896 38,989 27,070 10,572 7,979 173,769 127,706 129,476 131,237 83,356 Committed 2,111,592 2,145,574 1,047,987 1,111,182 2,441,641 1,059,197 1,041,130 723,300 936,899 920,475 Assigned 6,540,786 4,823,060 4,320,615 2,865,373 1,956,061 2,735,602 3,839,571 3,163,431 3,519,012 658,890 Unassigned 10,316,753 6,383,591 7,118,240 7,722,505 5,528,605 4,995,522 3,991,442 3,435,079 3,391,714 3,007,983 Total general fund 19,140,166 13,603,681 12,748,886 11,968,890 10,121,580 9,159,224 9,202,469 7,659,170 8,206,319 4,868,879 All other governmental funds Special revenue funds Non-spendable - - - 9,990 3,993 350 181 2,447 - 13,099 Restricted 377,451 307,837 315,215 950,529 298,495 758,959 428,847 482,578 590,445 399,424 Assigned - - - - - - - - 123,349 171,381 Total all other governmental funds 377,451 307,837 315,215 960,519 302,488 759,309 429,028 485,025 713,794 583,904 Total fund balances $ 19,517,617 $ 13,911,518 $ 13,064,101 $ 12,929,409 $ 10,424,068 $ 9,918,533 $ 9,631,497 $ 8,144,195 $ 8,920,113 $ 5,452,783 177 211

2021 Annual Comprehensive Financial Report for the City of Dover, Delaware Statistical Section Item 3. Table 4 City of Dover, Delaware Changes in Fund Balances of Governmental Funds Last Ten Fiscal Years (Modified accrual basis of accounting) Fiscal Year 2021 2020 2019 2018 2017 2016 2015 2014 2013 2012 Revenues Fines $ 709,808 $ 901,197 $ 1,020,920 $ 1,121,135 $ 1,142,722 $ 1,128,211 $ 1,161,876 $ 1,011,156 $ 912,004 $ 1,202,615 Library revenue 78,996 329,501 410,154 392,108 380,561 419,677 480,823 498,553 471,065 475,822 Licenses and permits 2,906,024 2,554,826 2,866,796 3,786,167 3,548,401 3,525,992 2,893,990 2,952,015 2,548,913 2,816,866 Sanitation fees and rebates 3,125,135 3,080,960 3,068,399 3,133,360 2,514,645 2,527,478 2,578,892 2,595,648 2,624,877 1,903,623 Recreation 20,915 43,203 61,147 87,125 53,301 65,145 66,038 49,144 40,446 44,522 Miscellaneous services 871,521 1,319,371 1,672,401 2,210,980 1,679,390 1,874,534 1,650,153 1,831,683 2,470,200 3,940,294 Taxes 19,702,590 16,584,028 15,103,449 15,125,329 14,564,304 15,085,481 12,930,532 12,655,035 12,333,520 12,462,532 Grants 3,645,196 4,307,401 2,814,036 2,534,707 2,386,060 3,449,238 2,489,239 3,416,319 5,119,089 8,909,758 Court of chancery fees 1,834,620 1,602,360 1,588,140 1,496,520 1,343,020 1,239,300 1,118,680 1,034,460 917,700 863,220 Investment income 7,794 475,051 730,797 93,751 123,234 234,885 77,769 122,490 45,198 117,405 Total revenues 32,902,599 31,197,898 29,336,239 29,981,182 27,735,638 29,549,941 25,447,992 26,166,503 27,483,012 32,736,657 Expenditures General government 1,937,056 1,770,930 1,760,851 1,710,100 2,026,568 2,116,749 1,425,786 1,271,523 1,107,122 1,093,772 Library services 1,857,652 2,108,269 1,971,773 1,981,201 1,926,561 1,720,021 1,675,989 1,697,982 5,514,217 13,518,569 Public safety 21,854,945 22,423,765 22,558,701 21,018,381 21,248,561 21,240,506 20,218,519 19,130,832 18,048,642 17,001,619 Public works 2,978,829 3,064,579 2,855,382 1,918,473 2,119,186 2,146,917 1,708,658 2,572,965 1,758,405 2,074,061 Recreational services 1,126,313 1,754,771 1,087,393 821,613 733,961 783,976 865,938 683,363 651,341 827,230 Streets and sanitation services 3,616,943 3,979,021 4,458,329 4,637,145 4,275,648 6,081,813 6,574,262 4,634,091 2,990,430 3,280,165 Engineering services 204,843 209,197 266,332 263,930 219,198 166,579 26,996 - - - Financial administration 791,540 815,956 754,400 762,860 764,622 919,086 979,112 1,002,539 909,877 902,009 Garage and stores 771,974 742,353 492,111 499,289 501,559 465,843 419,597 415,593 431,542 503,036 Insurance 343,044 376,584 276,689 302,258 295,923 280,901 278,682 272,895 241,395 198,241 Retiree health care lump sum 2,045,400 1,894,900 1,894,900 2,063,000 2,039,700 1,567,700 1,636,500 1,636,500 1,620,600 1,614,241 Employee pension unfunded liability - - - 619,000 - 594,300 543,000 121,000 1,693,500 1,545,000 Street lights 815,961 807,794 805,185 803,924 811,992 804,246 775,197 774,533 878,760 986,430 Community and economic development 1,023,086 531,306 461,983 513,857 449,356 551,879 444,474 676,554 939,966 773,208 (Continued) 178 212

2021 Annual Comprehensive Financial Report for the City of Dover, Delaware Statistical Section Item 3. Table 4 (Continued) - Changes in Fund Balances of Governmental Funds Fiscal Year 2021 2020 2019 2018 2017 2016 2015 2014 2013 2012 Expenditures Debt service Principal 335,760 328,716 322,745 332,355 573,497 553,824 848,069 429,239 296,003 275,000 Interest 156,154 135,352 34,773 128,455 118,771 118,565 114,243 122,812 73,071 52,734 Other charges (issuance of debt) - - - - - - 60,668 - 1,029 27,255 Total expenditures 39,859,500 40,943,493 40,001,547 38,375,841 38,105,103 40,112,905 38,595,690 35,442,421 37,155,900 44,672,570 Excess of revenues over(under) expenditures (6,956,901) (9,745,595) (10,665,308) (8,394,659) (10,369,465) (10,562,964) (13,147,698) (9,275,918) (9,672,888) (11,935,913) Other financing sources (uses) Bond proceeds 1,563,000 - 5,700,000 - - - 4,135,000 - 2,648,500 851,500 Transfers in 17,257,640 14,277,336 13,953,381 14,220,407 13,885,445 14,339,821 13,500,366 11,458,445 12,666,208 10,959,204 Transfers out (6,257,640) (3,535,746) (3,153,381) (3,320,407) (3,010,445) (3,489,821) (3,000,366) (2,958,445) (2,174,490) (2,658,408) Payments to refunded bond escrow agent - - (5,700,000) - - - - - - - Total other financing sources (uses) 12,563,000 10,741,590 10,800,000 10,900,000 10,875,000 10,850,000 14,635,000 8,500,000 13,140,218 9,152,296 Net change in fund balances $ 5,606,099 $ 995,995 $ 134,692 $ 2,505,341 $ 505,535 $ 287,036 $ 1,487,302 $ (775,918) $ 3,467,330 $ (2,783,617) Debt service as a percentage of noncapital expenditures 1.30% 1.34% 0.99% 0.94% 1.30% 2.14% 2.06% 2.76% 1.81% 1.59% Capital outlay included in total expenditures (1) $ 1,959,010 $ 6,190,215 $ 3,993,940 $ 2,066,950 $ 2,973,131 $ 5,753,588 $ 7,500,186 $ 3,777,578 $ 4,872,122 $ 13,927,288 NOTES (1) Capital outlay has been included in functional expenditures. Debt service as a percentage of non-capital expenditures excludes capital outlay expenditures. 179 213

2021 Annual Comprehensive Financial Report for the City of Dover, Delaware Statistical Section Item 3. Table 5 City of Dover, Delaware Governmental Activities Tax Revenues by Source Last Ten Fiscal Years (accrual basis of accounting) Fiscal Property Transfer Year Tax Tax Total 2021 $ 14,740,033 $ 4,962,557 $ 19,702,590 2020 14,758,590 1,825,438 16,584,028 2019 13,448,025 1,637,194 15,085,219 2018 13,065,098 2,022,165 15,087,263 2017 12,895,597 1,634,707 14,530,304 2016 12,846,772 2,191,915 15,038,687 2015 11,176,763 1,713,788 12,890,551 2014 11,094,479 1,543,626 12,638,105 2013 11,126,395 1,107,686 12,234,081 2012 11,050,198 1,373,103 12,423,301 NOTES 1. Property Tax rate of $.4050 per $100 of 100% assessed value (See Table 6 for tax rates). Revenues include payments in lieu of taxes, farm land roll back and penalties. 2. Transfer Taxes equal 1.5% of the real property sales value. 214 180

2021 Annual Comprehensive Financial Report for the City of Dover, Delaware Statistical Section Item 3. Table 6 City of Dover, Delaware Assessed and Estimated Actual Value of Taxable Property Last Ten Fiscal Years REAL PROPERTY Ratio of Direct Less: Total Taxable Tax Fiscal Total Assessed Exempt Total Taxable Estimated Value to Total Rate Year Value Properties Assessed Value Actual Value Assessed Value Per $100 2021 $ 4,964,063,500 $ 1,383,980,400 $ 3,580,083,100 $ 4,964,063,500 72.12% $ 0.4050 2020 4,617,529,500 1,343,536,900 3,273,992,600 4,617,529,500 70.90% 0.4400 2019 4,600,542,300 1,342,452,800 3,258,089,500 4,600,542,300 70.82% 0.4050 2018 4,553,536,100 1,338,792,000 3,214,744,100 4,553,536,100 70.60% 0.4050 2017 4,493,113,000 1,336,802,000 3,156,311,000 4,493,113,000 70.25% 0.4050 2016 4,443,188,600 1,335,276,500 3,107,912,100 4,443,188,600 69.95% 0.4050 2015 4,584,108,050 1,376,954,490 3,207,153,560 4,584,108,050 69.96% 0.3378 2014 4,525,547,960 1,365,654,100 3,159,893,860 4,525,547,960 69.82% 0.3378 2013 4,510,303,860 1,328,807,500 3,181,496,360 4,510,303,860 70.54% 0.3378 2012 4,469,369,160 1,300,061,400 3,169,307,760 4,469,369,160 70.91% 0.3378 Source: Tax Assessor's Office, City of Dover. NOTES 1. There is no tax on personal properties. Therefore, no figures are presented. 2. In 2015, the City property values were reassessed, effective for tax year 2016. The tax rate was increased from $ .3378 to $ .4050 per $100. Had the tax rate been rolled back to a revenue neutral rate, the rate would have been $ .3499 per $100. The revised rate represents a $ .0672 increase. 3. In 2020, the City property tax rate was increased from $0.4050 to $0.4400 per $100. The revised rate represents a $0.0350 increase. 4. In 2021, the City property tax rate was decreased from $0.4400 to $0.4050 per $100. The revised rate represents a $0.0350 decrease. 215 181

2021 Annual Comprehensive Financial Report for the City of Dover, Delaware Statistical Section Item 3. Table 7 City of Dover, Delaware Property Tax Rates - All Direct and Overlapping Governments with the Capital School District NOTES (Per $100 of Assessed Value) Last Ten Fiscal Years 1. Section 48 of the City of Dover charter provides that the amount of money to be raised through property taxes shall not exceed 2% of the total taxable assessment. Direct Overlapping City Capital Vo-Tech Total 2. Kent County Property tax Fiscal of Kent School School Direct & rates reflect the 1987 Year Dover County District District Overlapping reappraisal of properties in Kent County. 2021 0.4050 0.3000 2.2841 0.1571 3.1462 3. In 2015, the City property 2020 0.4400 0.3000 2.1897 0.1578 3.0875 values were reassessed, 2019 0.4050 0.3000 1.8307 0.1541 2.6898 effective for tax year 2016. 2018 0.4050 0.3000 1.7942 0.1522 2.6514 Tax rate increased to 2017 0.4050 0.3000 1.8065 0.1484 2.6599 $.4050. 2016 0.4050 0.3000 1.8115 0.1415 2.6580 2015 0.3378 0.3000 1.8215 0.1372 2.5965 4. In 2020, the City Tax rate 2014 0.3378 0.3000 1.8500 0.1372 2.6250 increased to $.4400. 2013 0.3378 0.3000 1.9090 0.1372 2.6840 5. In 2021, the City Tax rate 2012 0.3378 0.3000 1.8320 0.1351 2.6049 decreased to $4050. Sources: Tax Assessor's Office - City Receiver of Taxes Office - Kent County Property Tax Rates - FY 2021 All Direct & Overlapping Governments Vo-Tech School 5% City of Dover 13% Kent County 9% Capital School 73% City of Dover Kent County Capital School Vo-Tech School 216 182

2021 Annual Comprehensive Financial Report for the City of Dover, Delaware Statistical Section Item 3. Table 8 Principal Tax Payers Current Year and Nine Years Ago PERCENTAGE PERCENTAGE OF TOTAL OF TOTAL 2021 TAXABLE 2012 TAXABLE ASSESSED ASSESSED ASSESSED ASSESSED TAX PAYERS VALUATION RANK VALUATION VALUATION RANK VALUATION GLP Capital LP* $82,417,900 1 1.66% $82,025,600 1 2.59% Dover Mall LP/Dover Commons 61,564,100 2 1.24% 80,921,800 2 2.55% Dover International Speedway Inc* 60,506,200 3 1.22% 64,822,000 1 2.05% Blue Hen Apt LLC 35,842,700 4 0.72% - - - Leander Lakes LLC 24,571,900 5 0.49% - - - Medcore Realty Eden Hill LLC 24,018,100 6 0.48% 27,270,100 3 0.86% Kraft-General Foods Corp. 23,505,400 7 0.47% 19,565,300 5 0.62% CW Dover LLC 21,140,300 8 0.43% 25,035,100 4 0.79% Onix Dover LLC 16,860,500 9 0.34% - - - GM Country Club LLC 15,946,800 10 0.32% 13,176,500 8 0.42% Millers Dover Downs - - - 13,463,600 7 0.42% Dover Bay Court Plaza - - - 14,400,000 6 0.45% McKee Road Business Park LLC - - - 12,774,400 9 0.40% Multi-Residential -M LLC - - - 12,396,200 10 0.39% Source: Tax Assessor's Office, City of Dover $366,373,900 Total taxable assessed valuation for current year is 4,964,063,500 Total taxable assessed valuation for ten years ago is 3,169,307,760 *In 2012, Dover Downs race track and hotel properties were reported as one entity, in 2021 they are reported separately. 217 183

2021 Annual Comprehensive Financial Report for the City of Dover, Delaware Statistical Section Item 3. Table 9 City of Dover, Delaware Property Tax Levies and Collections Last Ten Fiscal Years Total Collected Within Collection Collected in Total Collection Fiscal Tax the Fiscal Year as Percentage Subsequent Collections as Percentage Year Levy of the Levy of Levy Years to Date of Levy 2021 $ 14,286,063 $ 14,248,670 99.7% $ - $ 14,248,670 99.74% 2020 14,136,787 13,799,173 97.6% 26,836 13,826,009 97.80% 2019 12,887,417 12,870,997 99.9% 18,713 12,887,417 100.00% 2018 12,669,581 12,628,024 99.7% 39,607 12,666,665 99.98% 2017 12,478,630 12,401,338 99.4% 78,577 12,478,630 100.00% 2016 12,437,857 12,204,948 98.1% 232,909 12,437,857 100.00% 2015 10,737,703 10,612,272 98.8% 125,431 10,737,703 100.00% 2014 10,696,886 10,493,954 98.1% 202,932 10,696,886 100.00% 2013 10,594,623 10,398,888 98.2% 195,735 10,594,623 100.00% 2012 10,549,631 10,280,930 97.5% 268,701 10,549,631 100.00% Source: City of Dover Assessor & Customer Service Reports. Property Taxes Levied Last Ten Fiscal Years $15 $13 Millions $11 $9 $7 $5 $3 $1 2021 2020 2019 2018 2017 2016 2015 2014 2013 2012 NOTES 1. Section 48 of the City of Dover charter provides that the maximum budget to be raised through property taxes shall not exceed 2% of the total taxable assessment. 2. Total Tax Levy represents the annual tax billings, quarterly billings, penalties, and adjustments from tax appeals. 3. The table excludes payments in lieu of taxes and farm land roll back taxes. 218 184

2021 Annual Comprehensive Financial Report for the City of Dover, Delaware Statistical Section Item 3. Table 10 City of Dover, Delaware Ratios of Outstanding Debt by Type Last Ten Fiscal Years Governmental Activities Business-type Activities General Water Wastewater Electric Total Percentage Fiscal Obligation Revenue Revenue Revenue Primary of Personal Per Year Bonds Bonds Bonds Bonds Government Income Capita Population 2021 $ 6,598,524 $ 7,772,675 $ 6,228,637 $ 15,254,787 $ 35,854,623 3.7% 933 38,412 2020 5,371,284 8,334,270 6,001,858 16,115,093 35,822,505 2.8% 934 38,349 2019 5,700,000 7,305,318 5,892,377 16,854,752 35,752,447 3.8% 916 37,790 2018 5,877,013 5,690,715 5,621,684 17,890,000 35,079,412 4.1% 921 38,422 2017 6,209,368 6,078,504 6,032,584 18,620,000 36,940,456 4.3% 978 37,686 2016 6,782,865 6,455,126 6,433,665 19,315,000 38,986,656 4.6% 1,041 37,941 2015 7,336,689 6,824,206 6,826,581 21,680,000 42,667,476 5.4% 1,137 37,560 2014 4,049,758 6,571,627 7,840,720 23,940,000 42,402,105 5.4% 1,130 37,540 2013 4,478,997 4,335,713 6,591,004 26,110,000 41,515,714 5.1% 1,138 36,492 2012 2,085,815 3,918,005 6,947,349 27,995,025 40,946,194 5.0% 1,129 36,267 Source: City of Dover Financial Records Population Source: City Count Beginning in FY19, Electric Revenue Bonds includes a premium of $1,154,752. Fiscal Year 2020 Electric Revenue Bonds includes a premium of $1,065,093. Fiscal Year 2021 Electric Revenue Bonds includes a premium of $989,787. 219 185

2021 Annual Comprehensive Financial Report for the City of Dover, Delaware Statistical Section Item 3. Table 11 Ratio of Net General Obligation Bonded Debt To Assessed Value and Net Bonded Debt Per Capita Last Ten Fiscal Years Ratio of Net Net Net Bonded Bonded Taxable Gross Net Debt To Debt Fiscal Assessed Bonded Bonded Assessed Per Year Population Value Debt Debt Value Capita 2021 38,412 $3,580,083,100 $ 6,598,524 $ 6,598,524 0.18% 171.78 2020 38,349 3,273,992,600 5,371,284 5,371,284 0.16% 140.06 2019 37,790 3,258,089,500 5,700,000 5,700,000 0.17% 150.83 2018 38,422 3,214,744,100 5,877,013 5,877,013 0.18% 154.24 2017 37,686 3,156,311,000 5,877,013 5,877,013 0.19% 154.24 2016 37,941 3,107,912,100 6,782,865 6,782,865 0.22% 179.51 2015 37,560 3,207,153,560 7,336,689 7,336,689 0.23% 195.03 2014 37,540 3,159,893,860 4,049,758 4,049,758 0.13% 107.88 2013 36,492 3,181,496,360 4,478,997 4,478,997 0.14% 121.97 2012 36,267 3,169,307,760 4,478,997 4,478,997 0.14% 122.74 Source: City of Dover Financial Records, Tax Assessor’s Office and Delaware Population Consortium Annual Population Projections (City Count). NOTES 1. This table includes all long-term general obligation bonded debt only. The Enterprise Funds have no general obligation debt. 2. Assessed value reflects the net billable tax base and does not include the exempt value, exemption for Senior Citizens and exemption for disability. 220 186

2021 Annual Comprehensive Financial Report for the City of Dover, Delaware Statistical Section Item 3. Table 12 City of Dover, Delaware Ratio of Annual Debt Service Expenditures for General Bonded Debt to Total General Expenditures Last Ten Fiscal Years Ratio of Debt Service Total Total to Total Fiscal Debt General General (1) Year Principal Interest Service Expenditures Expenditures 2021 $ 335,760 $ 130,128 $ 465,888 $ 46,433,359 1.00% 2020 328,716 134,852 463,568 49,048,464 0.95% 2019 322,745 132,829 455,574 46,907,709 0.97% 2018 332,355 128,455 460,810 44,049,712 1.05% 2017 573,497 118,771 692,268 44,378,544 1.56% 2016 553,824 118,565 672,389 46,477,667 1.45% 2015 848,069 114,243 962,312 45,484,211 2.12% 2014 429,239 122,812 552,051 39,646,120 1.39% 2013 296,003 73,071 369,074 40,517,512 0.91% 2012 275,000 52,734 327,263 47,743,864 0.69% Source: City of Dover Financial Records. NOTES 1. The General Expenditures include all operating items, capital items and debt service. 221 187

2021 Annual Comprehensive Financial Report for the City of Dover, Delaware Statistical Section Item 3. Table 13 City of Dover, Delaware Computation of Direct and Overlapping Debt with the Capital School District June 30, 2021 Percentage Amount Net Debt Applicable to Applicable to Jurisdiction Outstanding City of Dover City of Dover City of Dover $ 6,598,524 100% $ 6,598,524 Kent County (1) 53,953,289 0% N/A (2) Capital School District 62,514,276 0% N/A TOTAL $ 123,066,089 $ 6,598,524 Sources: City of Dover Financial Records, Kent County Levy Court - Accounting Department and Capital School District - Administration Department. NOTES 1. Kent County: Total debt for Kent County is $53,953,289 as of June 30, 2021. Although Kent County's bonds are general obligation bonds, $50,856,251 is payable from the Kent County Sewer Fund(s) or other committed sources. 2. Capital School District: As of June 30, 2021, the net outstanding debt was $62,514,276. Percentage and amount is not applicable to the City of Dover. 222 188

2021 Annual Comprehensive Financial Report for the City of Dover, Delaware Statistical Section Item 3. Table 14 Computation of Legal Debt Margin Last Ten Fiscal Years (amounts expressed in thousands) Fiscal Year 2021 2020 2019 2019 2018 2017 2016 2015 2014 2013 2012 Debt Limit $ 179,004 $ 163,700 $ 162,904 $ 160,737 $ 157,816 $ 155,396 $ 158,485 $ 157,995 $ 159,075 $ 158,465 $ 156,832 Net (Taxable) Assessed Value on Books 3,580,083 3,273,993 3,258,090 3,214,744 3,156,311 3,107,912 3,207,154 3,159,894 3,181,496 3,169,308 3,136,639 Total net debt applicable to limit 6,599 5,371 5,700 5,877 6,209 6,783 7,337 4,050 4,479 1,550 1,820 Legal Debt Margin $ 172,406 $ 158,328 $ 157,204 $ 154,860 $ 148,613 $ 151,149 $ 153,945 $ 154,596 $ 156,915 $ 155,012 $ 143,271 Total Net Debt applicable to limit as a percentage of debt limit 3.69% 3.28% 3.50% 3.59% 4.36% 4.63% 2.56% 2.82% 0.98% 1.16% 1.43% Legal Debt Margin Calculation for the current fiscal year Net (Taxable) Assessed Value on Books $ 3,580,083 Debt Limit - 5 Percent of Total Assessed Value $ 179,004 DEBT (For which the City's full faith and credit has been pledged) Gross Bonded Debt 6,599 LEGAL DEBT MARGIN $ 172,406 Source: City of Dover Financial Reports, City of Dover Charter, Section 50(b), and Tax Assessor's Office 223 189

Item 3. 2021 Annual Comprehensive Financial Report for the City of Dover, Delaware Statistical Section Table 15 City of Dover, Delaware Revenue Bond Coverage - Electric Revenue Bonds Last Ten Fiscal Years Available Fiscal Gross Operating For Debt Debt Service Requirements of Each Fiscal Year Year Revenue Expenses Service Principal Interest Total Coverage 2021 $ 80,114,761 $ 50,412,239 $ 29,702,522 $ 785,000 $ 573,950 $ 1,358,950 21.86 2020 81,872,067 52,849,253 29,022,814 650,000 613,200 1,263,200 22.98 2019 84,195,248 56,720,895 27,474,353 765,000 669,785 1,434,785 19.15 2018 84,235,174 60,595,349 23,639,825 730,000 847,454 1,577,454 14.99 2017 83,943,882 54,748,915 29,194,967 695,000 883,954 1,578,954 18.49 2016 80,846,658 54,418,343 26,428,315 2,365,000 918,704 3,283,704 8.05 2015 79,769,994 66,521,873 13,248,121 2,260,000 1,036,954 3,296,954 4.02 2014 79,476,865 68,594,189 10,882,676 2,170,000 1,131,854 3,301,854 3.30 2013 90,876,162 68,546,508 22,329,654 2,110,000 1,205,554 3,315,554 6.73 2012 93,650,277 71,607,021 22,043,256 2,060,000 1,260,054 3,320,054 6.64 Source: City of Dover Financial Records. NOTES 1. Coverage required by the bond resolution is 1.25. 4. Figures presented in this table compare the net revenue available for debt service to the debt service requirements 2. Calculation of gross revenue for fiscal year 2021 is as follows: of the same fiscal year. Gross Revenue: 5. In August 2018, the City issued Electric Revenue Operating Revenues $ 79,820,816 Refunding Bonds in the amount of $15,700,000 to refund Interest Earned-Operating Funds 293,945 the 2008 Series. This refunding reduced the principal Total Gross Revenue $ 80,114,761 3. Direct operating expenses do not include depreciation expense. 190 224

Item 3. 2021 Annual Comprehensive Financial Report for the City of Dover, Delaware Statistical Section Table 16 City of Dover, Delaware Revenue Bond Coverage - Water Bonds Last Ten Fiscal Years Maximum Requirements Net Revenue Maximum Direct Available Debt Fiscal Gross Operating For Debt Service Actual Year Revenue Expenses Service Requirement Coverage 2021 $ 6,792,206 $ 3,162,972 $ 3,629,234 $ 777,563 4.67 2020 6,319,837 3,688,935 2,630,902 543,630 4.84 2019 6,529,019 3,203,880 3,325,139 524,242 6.34 2018 6,447,543 2,909,073 3,538,470 524,242 6.75 2017 6,609,242 3,125,243 3,483,999 524,242 6.65 2016 6,172,107 3,515,886 2,656,221 524,242 5.07 2015 5,601,248 2,977,707 2,623,541 524,242 5.00 2014 5,170,210 3,146,564 2,023,646 524,242 3.86 2013 5,191,780 3,087,102 2,104,678 403,438 5.22 2012 5,292,750 3,150,679 2,142,071 404,349 5.30 Source: City of Dover Financial Records. NOTES 1. Coverage required by bond resolution is 1.20. 2. Direct operating expenses do not include depreciation expense for coverage purposes as per the bond indenture. 3. In Fiscal year 2013, various capital projects were completed. These capital projects were financed by a state revolving fund loan issued in 2010 in the amount of $2.4 million resulting in an increase in debt service. 4. In Fiscal year 2014, the City issued Water and Sewer Revenue Bonds in the amount of $6,125,000. These bonds were issued to refund the Series 2003 Water and Wastewater Revenue bonds and provided $4,005,960 for two capital projects. 5. Gross revenue is derived by taking gross revenue plus operating interest less the transfer to the water impact fee reserve. 6. In Fiscal year 2020, various capital projects were completed for the Water Treatment Plant. These capital projects were financed by a state revolving fund loan issued in FY 2018 in the amount of $4.0 million, resulting in an increase in debt service. 191 225

Item 3. 2021 Annual Comprehensive Financial Report for the City of Dover, Delaware Statistical Section Table 17 City of Dover, Delaware Revenue Bond Coverage - Wastewater Bonds Last Ten Fiscal Years Maximum Requirements Net Revenue Maximum Direct Available Debt Fiscal Gross Operating For Debt Service Actual Year Revenue Expenses Service Requirement Coverage 2021 $ 9,545,633 $ 6,575,007 $ 2,970,626 $ 630,158 4.71 2020 8,731,984 5,769,453 2,962,531 739,193 4.01 2019 8,749,309 6,916,935 1,832,374 608,563 3.01 2018 8,528,281 6,137,754 2,390,527 608,563 3.93 2017 8,745,021 5,781,479 2,963,542 608,563 4.87 2016 8,833,588 6,105,790 2,727,798 608,563 4.48 2015 8,784,378 6,272,640 2,511,738 608,563 4.13 2014 8,137,044 6,179,842 1,957,202 608,563 3.22 2013 8,091,003 5,754,656 2,336,347 615,877 3.79 2012 8,354,396 5,912,874 2,441,522 589,488 4.14 Source: City of Dover Financial Records. NOTES 1. Coverage required by bond resolution is 1.20. 2. Direct operating expenses do not include depreciation expense for coverage purposes as per the bond indenture. 3. In Fiscal year 2013, various capital projects were completed. These capital projects were financed by two state revolving fund loans issued in 2009 & 2011 in the amount of $5.6 million and $0.8 million, resulting in an increase in debt service. 4. In Fiscal year 2014, the City issued Water and Sewer Revenue Bonds in the amount of $6,125,000. These bonds were issued to refund the Series 2003 Water and Wastewater Revenue bonds and provided $4,005,960 for two capital projects. 5. Gross revenue is derived by taking gross revenue plus operating interest less the transfer to the wastewater impact fee reserve. 6. In Fiscal year 2020, three pumpstations were replaced. These capital projects were financed by a state revolving fund loan issued in 2018 in the amount of $0.9 million, resulting in an increase in debt service. 192 226

Item 3. 2021 Annual Comprehensive Financial Report for the City of Dover, Delaware Statistical Section Table 18 City of Dover, Delaware Top 10 Water and Wastewater Utility Customers Fiscal Year Ended June 30, 2021 Water % of % of Consumption Total Revenue Total Customer (Tgal) Consumption Billed Revenue Garrison Energy Center 253,711 16.83% $ 948,157 16.41% Tidewater Utilities 80,615 5.35% 345,768 5.99% Procter and Gamble 53,650 3.56% 199,176 3.45% Delaware State University 41,206 2.73% 152,808 2.65% Kraft Foods Global 26,285 1.74% 96,825 1.68% Dover Downs Inc 26,174 1.74% 96,409 1.67% Dover Housing Authority 23,650 1.57% 84,295 1.46% Bayhealth Medical Center 21,781 1.44% 75,769 1.31% Kent General Hospital 21,182 1.40% 77,746 1.35% Sovereign Property Management 20,090 1.33% 63,319 1.10% Totals for Top 10 Customers 568,344 37.69% $ 2,140,273 37.05% All Other 939,473 62.31% 3,636,902 62.95% Total for System 1,507,817 100.00% $ 5,777,175 100.00% Wastewater % of % of Consumption Total Revenue Total Customer (Tgal) Consumption Billed Revenue Kraft Foods Global 66,421 5.33% $ 485,756 5.22% Procter and Gamble 49,146 3.94% 345,736 3.72% Delaware State University 32,652 2.62% 229,844 2.47% Dover Downs 26,174 2.10% 184,123 1.98% Dover Housing Authority 23,629 1.90% 171,035 1.84% Kent General Hospital 21,182 1.70% 149,449 1.61% Bayhealth Medical Center 20,400 1.64% 143,982 1.55% Sovereign Property Management 20,090 1.61% 143,153 1.54% Garrison Energy Center 18,877 1.51% 132,825 1.43% Dover East Estates 14,050 1.13% 98,832 1.06% Totals for Top 10 Customers 292,621 23.47% 2,084,735 22.41% All Other 954,213 76.53% 7,218,180 77.59% Total for System 1,246,834 100.00% $ 9,302,915 100.00% NOTES: 1. Both the Water and Wastewater revenue billed amounts for each top customer, do not include the monthly flat rate of $5.00. 2. The total Revenue amounts for both Water and Wastewater include the monthly flat rates. 193 227

Item 3. 2021 Annual Comprehensive Financial Report for the City of Dover, Delaware Statistical Section Table 19 City of Dover, Delaware Top 10 Electric Utility Customers Fiscal Year Ended June 30, 2021 % of Total Revenue % of Total Customer Kwh Kwh Billed Revenue Dover Air Force Base 69,275,488 9.6% $ 4,179,150 5.5% Kraft 42,579,882 5.9% 2,550,535 3.3% Edgewell Personal Care Products 41,329,108 5.7% 2,612,110 3.4% Bay Health/Kent General 27,464,120 3.8% 1,743,616 2.3% Delaware State University 26,066,699 3.6% 1,648,468 2.2% Dover Downs 20,361,738 2.8% 1,286,955 1.7% Procter & Gamble 13,805,071 1.9% 830,971 1.1% State of Delaware 13,306,141 1.9% 829,142 1.1% Capital School District 8,525,202 1.2% 535,094 0.7% Eden Hill Medical Center 5,256,600 0.7% 332,217 0.4% Totals for Top 10 Customers 267,970,049 37.3% $ 16,548,258 21.7% All Other 451,201,755 62.7% 59,710,926 78.3% Total for System 719,171,804 100.0% $ 76,259,184 100.0% Note: The revenue billed includes direct base sales and utility tax. 194 228

Item 3. 2021 Annual Comprehensive Financial Report for the City of Dover, Delaware Statistical Section Table 20 City of Dover, Delaware Demographic and Economic Statistics Last Ten Calendar Years Per Capita Personal Personal Median School Unemployment Year Population Income Income Age Enrollment Rate 2021 38,412 $ 965,293,560 $ 25,130 30.7 6,332 10.9% 2020 38,349 1,297,385,019 33,831 38.2 6,250 6.7% 2019 37,790 921,244,620 24,378 29.9 6,519 5.7% 2018 38,422 865,182,114 22,707 29.5 6,494 5.8% 2017 37,686 827,207,700 21,950 30.0 6,523 6.2% 2016 37,941 842,783,433 22,213 30.2 6,486 5.7% 2015 37,560 730,354,200 19,445 31.3 6,665 7.4% 2014 37,540 788,039,680 20,992 29.8 6,527 6.4% 2013 36,492 821,361,936 22,508 31.1 6,344 9.6% 2012 36,267 828,258,924 22,697 33.2 6,984 9.3% Population Source: City Count Personal Income Source: Estimation based on Population times Per Capita Personal Income Per Capita Personal Income Source: U.S. Census Bureau, 2015-2019 Quick Facts Median Age Source: Data USA; Dover, DE, Deloitte Touche Tohmatsu Limited Capital School Enrollment Source: Includes kindergarten through 12th grade Unemployment Rate Source: Ycharts.com 195 229

Item 3. 2021 Annual Comprehensive Financial Report for the City of Dover, Delaware Statistical Section Table 21 City of Dover, Delaware Major Employers by Industry Current Year and Nine Years Ago 2020 4th Quarter 2011 4th Quarter Percentage of Percentage of Number of Total County Number of Total County Industry Description Employees Rank Employment Employees Rank Employment Government 18,807 1 28.3% 19,141 1 30.9% Retail trade 9,151 3 13.7% 9,630 2 15.5% Health care & social assistance 9,754 2 14.7% 8,143 3 13.1% Accommodation & food services 5,256 4 7.9% 4,929 4 8.0% Manufacturing 4,918 5 7.4% 3,309 5 5.3% Arts, entertainment, & recreation 1,148 10 1.7% 2,734 6 4.4% Construction 2,775 8 4.2% 2,051 8 3.3% Transportation & warehousing 2,864 7 4.3% 1,976 9 3.2% Admin and waste services 3,676 6 5.5% 2,571 7 4.2% Professional & technical services 1,965 9 3.0% 1,390 10 2.2% 60,314 90.6% 55,874 90.2% Total - All Industries 66,559 61,939 Source: Delaware Department of Labor/Office of Occupational and Labor Market Information/Payroll Data/Quarterly Census of Employment and Wages (Geography information is available by County only, not by City) Note: The names of the top employers & number of employees is confidential and may not be disclosed to the public pursuant to 20 CFR (Code of Federal Regulations) Part 603. As a result, the employment information provided is by industry. 196 230

Item 3. 2021 Annual Comprehensive Financial Report for the City of Dover, Delaware Statistical Section Table 22 City of Dover, Delaware Full-time Equivalent City Government Employees by Function - Budgeted Last Ten Fiscal Years 2021 2020 2019 2019 2018 2017 2016 2015 2014 2013 Assessor 3.0 3.0 3.0 3.0 3.0 3.0 3.0 3.0 3.0 3.0 City Clerk 4.0 4.0 4.0 4.0 4.0 4.0 4.0 4.0 4.0 4.0 City Manager 6.0 5.0 5.0 5.0 4.0 4.0 4.0 4.0 3.0 5.0 Customer Services 16.0 16.0 16.0 16.0 13.0 14.0 14.0 15.0 14.0 14.0 Facilities Management 4.0 5.0 5.0 5.0 5.0 7.0 7.0 7.0 9.0 12.0 Finance 8.0 8.0 8.0 8.0 8.0 8.0 8.0 8.0 8.0 8.0 Fire 5.0 5.0 5.0 5.0 5.0 5.0 6.0 8.0 6.0 6.0 Fleet Maintenance 6.0 7.0 6.0 6.0 6.0 6.0 6.0 6.0 6.0 6.0 Human Resources 4.0 4.0 3.0 3.0 3.0 3.0 3.0 3.0 3.0 3.0 Information Technology 4.0 4.0 4.0 4.0 4.0 4.0 5.0 5.0 5.0 5.0 Library 14.0 14.0 13.0 13.0 13.0 13.0 14.0 13.0 13.0 12.0 Mayor 2.0 2.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 Parks and Recreation 6.0 9.0 9.0 5.0 5.0 5.0 5.0 5.0 5.0 6.0 Police Civilian 35.0 34.0 33.0 33.0 33.0 33.0 31.0 31.0 29.0 29.0 Police Law Enforcement 101.0 101.0 101.0 101.0 101.0 101.0 93.0 93.0 93.0 93.0 Procurement & Inventory 5.0 4.0 5.0 3.0 3.0 3.0 3.0 4.0 4.0 6.0 Public Works, Administration 5.0 7.0 6.0 6.0 6.0 6.0 5.0 5.0 6.0 5.0 Planning, Inspections 6.0 7.0 6.0 6.0 6.0 6.0 6.0 6.0 7.0 7.0 Planning, Life Safety 4.0 4.0 3.0 3.0 3.0 3.0 3.0 3.0 3.0 3.0 Economic Development - - - - - 3.0 3.0 3.0 3.0 3.0 Public Works, Engineering 2.0 2.0 3.0 3.0 3.0 3.0 3.0 - - - Planning 6.0 6.0 6.0 6.0 6.0 6.0 5.0 4.5 4.5 5.0 Planning, Code Enforcement 5.0 5.0 5.0 5.0 5.0 5.0 5.0 5.0 4.0 4.0 Community Development - - - - - - - 0.5 0.5 1.0 Public Works, Grounds Maintenance 17.0 14.0 13.0 13.0 13.0 13.0 13.0 14.0 14.0 14.0 Public Works, Sanitation 11.0 10.0 10.0 10.0 10.0 10.0 11.0 11.0 11.0 13.0 Public Works, Streets 7.0 7.0 8.0 8.0 8.0 8.0 8.0 8.0 10.0 11.0 Public Works, Stormwater 7.0 7.0 - - - - - - - - General Fund Total 293.0 294.0 281.0 275.0 271.0 277.0 269.0 270.0 269.0 279.0 Public Utilities, Electric Administration 3.0 2.0 3.0 5.0 5.0 4.0 3.0 3.0 3.0 4.0 Public Utilities, Electric Engineering 10.0 10.0 10.0 10.0 10.0 10.0 10.0 10.0 10.0 10.0 Public Utilities, Electric System OPS 7.0 7.0 5.0 5.0 5.0 5.0 5.0 5.0 5.0 5.0 Public Utilities, Electric Meter Reading 4.0 4.0 4.0 4.0 4.0 4.0 3.0 3.0 3.0 3.0 Public Utilities, Electric Transmission & Distribution 23.0 23.0 24.0 24.0 24.0 24.0 24.0 24.0 24.0 25.0 Electric Fund Total 47.0 46.0 46.0 48.0 48.0 47.0 45.0 45.0 45.0 47.0 Public Utilities, Construction - - - - - - 3.0 3.0 5.0 6.0 Public Utilities, Wastewater Engineering 2.5 2.0 2.0 - - - - - - - Public Utilities, Wastewater Management 11.0 11.0 10.0 11.0 11.0 11.0 11.0 11.0 10.0 10.0 Public Utilities, Water Engineering 2.5 3.0 3.0 5.0 5.0 5.0 5.0 5.0 6.0 6.0 Public Utilities, Water Management 6.0 6.0 7.0 6.0 6.0 6.0 4.0 4.0 5.0 4.0 Public Utilities, Water Treatment Plant 14.0 14.0 13.0 13.0 13.0 13.0 11.0 11.0 10.0 10.0 Water Meter Reading - - - - - - - - - - Water/Wastewater Fund Total 36.0 36.0 35.0 35.0 35.0 35.0 34.0 34.0 36.0 36.0 Total Full-Time Equivalents 376.0 376.0 362.0 358.0 354.0 359.0 348.0 349.0 350.0 362.0 Source: City of Dover Budget 197 231

Item 3. 2021 Annual Comprehensive Financial Report for the City of Dover, Delaware Statistical Section Table 23 City of Dover, Delaware Operating Indicators and Capital Assets Used in Operations Last Ten Fiscal Years June 30, 2021 June 30, 2020 June 30, 2019 June 30, 2018 June 30, 2017 June 30, 2016 June 30, 2015 June 30, 2014 June 30, 2013 June 30, 2012 Land area - Acres 15,278.54 15,276.80 15,193.00 15,191.70 15,191.70 15,191.70 14,914.50 14,909.33 14,909.33 14,909.33 Land area - Square Miles 23.87 23.87 23.74 23.74 23.74 23.74 23.30 23.29 23.29 23.29 Total Miles of Street 172.35 172.35 170.52 170.33 169.08 168.01 167.78 164.49 164.08 162.81 City Maintained Miles of Streets 113.00 113.00 111.17 110.98 109.73 108.66 108.43 105.14 104.73 103.46 State Maintained Miles of Streets 59.35 59.35 59.35 59.35 59.35 59.35 59.35 53.35 59.35 59.35 Dover Population - U. S. Census data 36,047 36,047 36,047 36,047 36,047 36,047 36,047 36,047 36,047 36,047 Dover Population - City Count 38,412 38,349 37,790 38,422 37,686 37,941 37,560 37,540 36,492 36,267 Registered Voters 26,827 25,535 25,131 24,513 23,942 24,170 22,837 22,779 21,998 22,362 Electric Utility: Generating Units 1 2 2 2 2 4 4 4 4 4 Co-Generating Unit 0 0 0 0 0 0 1 1 1 1 Total Units 1 2 2 2 2 4 5 5 5 5 Generating Capacity 43 mw 147 mw 147 mw 147 mw 147 mw 175 mw 175 mw 175 mw 175 mw 175 mw Co-Generating Capactiy 0 mw 0 mw 0 mw 0 mw 0 mw 0 mw 175 mw 175 mw 175 mw 175 mw Area of Service 74.86 sq. mi. 74.8 sq. mi. 74.8 sq. mi. 74.8 sq. mi. 67.77 sq. mi. 67.77 sq. mi. 67.77 sq. mi. 68 sq. mi. 68 sq. mi. 68 sq. mi. Substations 15 15 15 15 15 15 15 15 15 15 High Peak Load 155.9 mw 164.38 mw 165.16 mw 162.87 mw 165.9 mw 158.5 mw 158 mw 164.162 mw 171 mw 172 mw Customers: Residential 21,161 20,972 20,899 20,545 20,155 20,065 20,143 19,900 19,990 19,908 Commercial 3,411 3,319 3,541 3,577 3,424 3,310 3,343 3,412 3,412 3,354 Primary 36 36 36 36 37 37 36 37 37 39 69 KV Industrial 5 5 5 5 5 5 4 5 4 4 Total Customers Sales $ $76,259,184 $77,461,770 $79,501,247 $80,295,500 $79,413,094 $76,657,592 $78,406,554 $78,187,300 $88,329,610 $91,947,980 Total Customers Sales kWh 719,171,804 717,037,366 745,562,770 742,240,636 737,014,329 705,214,632 715,001,017 714,150,305 723,106,532 710,327,722 PowerSupply $ (Including Plant Operations) 38,065,310 $40,459,054 $44,018,591 $46,928,628 $43,406,314 $42,292,251 $49,645,951 $57,003,103 $55,367,147 $58,758,032 kWh 753,072,000 749,653,000 785,285,000 775,661,000 773,550,000 740,871,000 756,867,000 762,254,000 752,869,000 738,190,000 Fire Department: Stations 2 2 2 2 2 2 2 2 2 2 Officers 8 8 8 8 8 8 8 8 8 8 Firemen - Membership (Volunteers-Active) 204 80 125 125 125 125 125 160 100 100 Equipment 15 16 14 14 10 10 16 15 15 15 Parks and Recreation: Major Parks 3 3 3 3 3 3 3 3 3 3 Small Parks 25 25 25 25 25 24 24 24 24 24 (Continued) 198 232

Item 3. 2021 Annual Comprehensive Financial Report for the City of Dover, Delaware Statistical Section Table 23 (Continued) June 30, 2021 June 30, 2020 June 30, 2019 June 30, 2018 June 30, 2017 June 30, 2016 June 30, 2015 June 30, 2014 June 30, 2013 June 30, 2012 Police Department: Station 1 1 1 1 1 1 1 1 1 1 Uniformed Personnel 103 94 97 98 99 100 89 94 93 93 Automobiles 77 77 77 81 80 80 76 77 75 78 Motorcycles 7 7 7 7 7 7 7 7 7 7 Motor Boats 0 0 0 0 0 0 0 0 0 0 Bicycles 8 8 8 8 7 7 12 12 12 12 Specialty Vehicles 7 7 7 7 7 7 7 7 7 7 Trailers 4 4 5 4 3 2 2 2 2 2 Golf Carts 6 6 6 6 6 6 5 0 0 0 Rental Vehicles 5 5 0 0 0 0 0 0 0 0 Public Library: Books 91,756 93,009 108,763 113,253 103,187 106,493 106,125 100,262 97,801 93,050 Audiovisual Materials (VCRs, DVDs, CDs, Cassettes, Recorded Books) 25,824 29,699 23,626 24,021 26,158 22,345 22,366 21,008 16,929 15,265 Computer Usage 2,611 38,003 49,591 0 0 0 0 0 0 0 Wireless Usage 3,014 13,785 19,355 0 0 0 0 0 0 0 Members 26,222 30,253 31,997 32,256 40,412 41,221 41,348 37,531 34,308 32,717 Magazine Subscriptions 126 129 138 140 147 161 174 191 187 217 Newspaper Subscriptions 11 11 11 11 11 12 10 10 11 11 Circulation of Materials 114,335 256,783 376,380 364,849 377,314 412,969 449,746 463,113 444,333 407,611 Electronic Downloads (E-Books) 43,414 41,892 38,467 32,856 28,397 30,811 24,801 17,219 11,770 2,635 Water Utility: Supply - Wells 21 21 21 21 21 21 22 22 22 22 Storage Tanks 7 7 7 7 7 7 6 6 6 6 Total Storage Capacity (Gallons) 5,250,000 5,250,000 5,250,000 5,250,000 5,250,000 5,250,000 3,750,000 3,750,000 3,750,000 3,750,000 Water Mains (miles) 229.79 229.79 228.85 226.41 225.15 225.15 224.50 223.15 222.30 217.50 Average Day (Gallons Pumped) 4,792,735 4,991,444 5,198,288 5,021,299 5,288,271 4,521,047 4,521,047 4,197,984 4,245,153 4,405,923 Peak Day (Gallons) 7,286,000 7,286,000 7,671,000 7,695,000 8,605,000 7,466,000 7,048,000 6,305,000 7,169,000 8,620,000 Total Water Production (Gallons Pumped) 1,719,275,840 1,821,877,000 1,897,375,000 1,832,774,000 1,930,219,000 1,833,877,000 1,650,329,000 1,532,264,000 1,553,727,000 1,608,161,895 Total Water Consumption (Gallons Billable) 1,507,817,000 1,682,961,000 1,722,634,000 1,692,407,000 1,766,064,000 1,648,819,000 1,441,559,000 1,374,855,000 1,410,424,000 1,459,923,000 Avearge Day (Gallons Billable) 4,131,005 4,610,852 4,719,545 4,636,732 4,838,531 4,517,312 3,949,476 3,766,726 3,864,175 3,988,861 Number of Metered Customers 12,991 12,952 12,904 12,729 12,556 12,376 12,365 12,341 12,373 12,385 Number of New Connections 39 48 175 173 180 11 24 0 0 55 Wastewater Utility: Pumping Stations 44 44 44 44 42 45 41 40 40 40 Sanitary Sewer Mains (Miles) 196.08 196.08 195.31 192.41 191.00 191.00 191.00 187.59 186.87 186.87 Average Day (Gallons Pumped) 3,415,984 4,082,055 5,795,360 4,785,079 4,592,821 4, 706,133 4,897,731 4,893,424 4,312,742 4,379,033 Wastewater Discharge (Gallons Pumped) 1,883,943,000 1,489,950,000 2,115,306,558 1,746,554,000 1,676,379,600 1,717,738,575 1,787,672,000 1,786,100,000 1,574,151,000 1,602,726,000 Wastewater Discharge (Gallons Billable) 1,246,834,000 1,219,035,000 1,244,808,000 1,224,105,000 1,274,087,000 1,258,961,000 1,264,140,000 1,246,804,000 1,242,238,000 1,316,656,000 Average Day (Gallons Billable) 3,415,984 3,339,822 3,410,433 3,353,712 3,490,649 3,449,208 3,463,397 3,415,901 3,403,392 3,607,277 Number of New Connections 48 38 185 169 179 0 22 0 5 55 Water Treatment Plant: Capacity 3.0 MGD 4.6 MGD 4.6 MGD 4.6 MGD 4.6 MGD 4.6 MGD 4.6 MGD 4.6 MGD 4.6 MGD 4.6 MGD Sales to Customers: Water Fees $5,777,175 $5,557,797 $5,682,005 $5,584,474 $5,776,109 $5,457,061 $4,889,046 $4,459,808 $4,551,840 $4,707,918 Wastewater Fees $4,232,183 $3,615,733 $3,720,797 $3,612,194 $3,718,736 $3,745,497 $3,735,855 $3,562,400 $3,564,615 $3,722,985 Wastewater Treatment Fees $3,122,477 $3,108,340 $2,902,852 $2,813,867 $2,912,660 $2,936,831 $2,952,857 $2,930,333 $2,926,616 $3,050,127 Inflow & Infiltration Surcharge $1,948,255 $1,803,964 $1,858,169 $1,800,156 $1,863,151 $1,878,057 $1,831,784 $1,316,209 $1,314,033 $1,290,968 199 Sources: Various City departments 233

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Item 3. 2021 Annual Comprehensive Financial Report for the City of Dover, Delaware Statistical Section Table 24 City of Dover, Delaware Summary of Insurance As of June 30, 2021 PROTECTION TYPE OF COVERAGE LIMIT IN DOLLARS Property Blanket Building & Contents (Special Form, RC, Agreed Amount) $167,051,211 $25,000 Deductible Personal Property of Others $ 250,000 Earthquake $2,000,000 $50,000 Deductible Flood Zones X or C $2,000,000 $50,000 Deductible Flood Zones (Zones unidentifiable) $100,000 Deductible Zones located A, B Shaded X, V & D are excluded Blanket Business Earnings & Expense $1,000,000 72 Hours Business Income from Dependent Properties $250,000 $25,000 Deductible Accounts Receivable $250,000 Civil Authority - 30 days Claims Data Expense $25,000 Covered Leasehold Interest $100,000 Debris Removal (Additional Amount) $250,000 Deferred Payments $25,000 EDP Data & Media Included Employee Tools $18,000 Any One Item $100,000 Any One Occurence $250 Deductible Expediting Expenses $250,000 Exhibitions (Property Damage) $50,000 Extra Expense $25,000 Fine Arts $250,000 Fire Dept. Services Charge Included Fire Protective Equipment Discharge Included Fungus, Wet Rot, Bacteria $25,000 Green Bldg Alternatives 1% / Max. $100,000 each building Green Bldg Reengineering & Recertification $25,000 Loss of Master Key $25,000 Newly Acquired or Constructed -Buildings Each $2,000,000 each building -Personal Property at each loc. $1,000,000 Non-Owned Detached Trailers $25,000 Ord & Law Coverage $250,000 Outdoor Property $250,000 Outside Signs – At Described Premises $100,000 Personal Effects $50,000 Personal Property at Undescribed Premises $50,000 Personal Property in Transit out of Coverage Territory $50,000 201 235

Item 3. 2021 Annual Comprehensive Financial Report for the City of Dover, Delaware Statistical Section Table 24 - Continued PROTECTION TYPE OF COVERAGE LIMIT IN DOLLARS Pollution Cleanup & Removal $100,000 Preservation of Property-Direct $250,000 -Direct loss or damage to moved Prop. Included Reward Coverage- Up to 25% $25,000 Stored Water $25,000 Theft or Damage to Rented Property Included Undamaged Parts of Stock in Process $50,000 Valuable Papers on Premises $100,000 Valuable Papers off Premises $100,000 Appurtenant Buildings and Structures $100,000 Utility Service Direct Damage $50,000 Confiscated Property $100,000 Street Lights – Each Item $2,500 Street Lights – Max Per Occur $50,000 Street Signs – Each Item $2,500 Street Signs – Max Per Occur $50,000 Traffic Signs and Lights –Each $2,500 Traffic Signs and Lights - Max Per Occur $50,000 Stadium Lights – Each Item $2,500 Stadium Lights – Max Per Occur $50,000 Spoilage Coverage Extension $50,000 Sewer or Drain Backup $250,000 Boiler & Machinery/Equipment Breakdown Coverage Limit Property Limit Deductible $25,000 Expediting Expenses $250,000 Hazardous Substance $250,000 Spoilage $250,000 Ammonia Contamination $250,000 Inland Marine Contractors Equipment – Replacement Cost - 90% Co-Insurance Unlisted Items/equipment $100,000 Not to exceed $5,000 per item Leased or Rented Items $100,000 Not to exceed $100,000 per item New Acquired contractors equipment $250,000 Rental Cost (per Item) $5,000 Loss to any one Replacement Item $100,000 Scheduled Items $84,285 Basic Deductible $1,000 Flood Deductible $50,000 Earthquake Deductible $50,000 Windstorm Deductible $10,000 202 236

Item 3. 2021 Annual Comprehensive Financial Report for the City of Dover, Delaware Statistical Section Table 24 - Continued PROTECTION TYPE OF COVERAGE LIMIT IN DOLLARS Crime Employee Theft per Loss $500,000 $500 Deductible Forgery or Alteration $100,000 $1,000 Deductible Inside the Premises – Theft of Money & Securities $100,000 $500 Deductible Robbery or Safe Burglary of Other Property $100,000 $500 Deductible Outside the Premises $100,000 $500 Deductible Computer Fraud $100,000 $1,000 Deductible Money Orders & Counterfeit Currency $100,000 $1,000 Deductible Faithful Performance of Duty Coverage Endorsement – Governmental Employees Liability Coverage: Commercial General Liability Each Occurrence Limit $1,000,000 General Aggregate Limit $3,000,000 Products Completed Operations Aggregate $3,000,000 Limit Personal & Advertising Injury Each Person $1,000,000 Damages to Premises Rented to You Limit (Any One Premises) $100,000 Medical Expenses Excluded Sewer Back Up $1,000,000 (resulting from negligence) Failure to Supply $1,000,000 Each Abuse or Molestation Offense Limit $1,000,000 Abuse or Molestation Aggregate Limit $2,000,000 Statutory Cap Limits of Coverage Endorsement Delaware Each Occurrence Statutory Cap Limit $300,000 Employee Benefit Plans Administration Liability - Claims Made Retroactive Date: None Aggregate Limit $3,000,000 Each Employee Limit $1,000,000 Deductible- Each Employee $1,000 Law Enforcement Liability - Occurrence Aggregate Limit $3,000,000 Each Wrongful Act Limit $1,000,000 Each Wrongful Act Deductible $15,000 Statutory Cap Limits of Insurance Endorsement Delaware Statutory Cap Limit $300,000 203 237

Item 3. 2021 Annual Comprehensive Financial Report for the City of Dover, Delaware Statistical Section Table 24 - Continued PROTECTION TYPE OF COVERAGE LIMIT IN DOLLARS Public Entity Management Liability - Claims Made Retroactive Date: 7/1/1996 Aggregate Limit $3,000,000 Each Wrongful Act Limit $1,000,000 Deductible $25,000 Employment Practices Liability - Claims Made Retroactive Date: 7/1/1996 Aggregate Limit $3,000,000 Each Wrongful Employment Practice Offense Limit $1,000,000 Deductible $25,000 Business Auto Policy Coverage: Automobile Liability $1,000,000 Personal Injury Protection $300,000 Uninsured/Underinsured Motorist $40,000 (Physical Damage Applies to Police & Specified Electric & Sanitation Trucks) $1,000 Comp Ded/$1,000 Collision Ded Non-owned Liability $1,000,000 Hired Auto Liability $1,000,000 Employees as Additional Insured Hired Auto Physical Damage IF ANY Hired Car Physical Damage Deductibles Comprehensive Deductible $250 Collision Deductible $250 Statutory Cap Limits of Coverage Endorsement Delaware Statutory Cap Limit $300,000 Excess Crime Policy Coverage: Excess Crime Employee Theft per Loss $500,000 excess of $500,000 (Over Policy# 6300B165227) 204 238

Item 3. 2021 Annual Comprehensive Financial Report for the City of Dover, Delaware Statistical Section Table 24 - Continued PROTECTION TYPE OF COVERAGE LIMIT IN DOLLARS Umbrella Excess Liability Coverage: Umbrella General Aggregate Limit $6,000,000 Each Occurrence Limit $6,000,000 Products & Completed Work Aggregate Limit $6,000,000 Retained Limit Any One Occurrence or Event $10,000 Umbrella Underlying Policies: General Liability $1,000,000 Employment Benefits $1,000,000 Auto Liability $1,000,000 Law Enforcement Liability $1,000,000 Public Entity Management $1,000,000 Employment Practices Liability Employers Liability (Safety Nat’l) $1,000,000 Cyber Liability Coverage: Cyber Liability – Claims Made Retroactive Date: 12/01/2012 Media Content $1,000,000 Security & Privacy Liability $1,000,000 Regulatory Action Sublimit $1,000,000 Network Interruption $1,000,000 12 Hour Waiting Period Event Management $1,000,000 Cyber Extortion $1,000,000 Reputation Guard Insurance $50,000 Retention $10,000 Excess Cyber Liability Excess Network Security/Privacy Liability $1,000,000 Policy Aggregate $1,000,000 Retention per Claim EO $10,000 Pollution Liability Coverage: Pollution Liability Each Pollution Event Limit $5,000,000 Aggregate Policy Limit $10,000,000 Crisis Management Expense Aggregate Limit $250,000 Green Mediation Aggregate Limit $50,000 Green Standards Aggregate Limit $50,000 Deductibles $25,000 Each Pollution Event 205 239

Item 3. 2021 Annual Comprehensive Financial Report for the City of Dover, Delaware Statistical Section Table 24 - Continued PROTECTION TYPE OF COVERAGE LIMIT IN DOLLARS Claims Made Retroactive Date 4/1/1997 Includes: 2 underground storage tanks-710 Williams St., Dover, DE & 2 Power Plants Excess Worker’s Compensation Coverage: Employers Liability Limit: $1,000,000 Specific Limit: Statutory Aggregate Excess Limit: $3,000,000 $600,000 Retention (Police) $500,000 Retention (All Other) Worker's Compensation-TPA Services (Charges based on claim count, this number could fluctuate) Travel Accident Policy Principal Sum: $100,000 $0 Deductible Covered Positions: The Mayor, HR Director, Police Chief, Police Major, Police Captains, IT Director, PW Director, Waste/Wastewater Manager, PW Operations Manager, Electric Director, Engineering and Systems Operations, Line Crew Foreman, City Manager, Assistant City Manager, Planning Director, Principal Planner, Fire Marshal, City Clerk, Assistant City Clerk, Controller, Assistant Finance Director, Library Director, Assistant Library Director, Tax Assessor, Economic Development Director, and Council Members of the Policyholder. Bond-Self Insured Worker’s Compensation - State of Delaware Limit: $750,000 Bond- Public Officials Bond - Traci McDowell – City Clerk/Assistant Treasurer Limit: $100,000 Bond- Public Officials Bond – Lori Peddicord – Controller Limit: $100,000 Bond- Public Officials Bond – Janella Tauchus – Asst. Controller/Asst. Treasurer Limit: $100,000 206 240

Item 3. 2021 Annual Comprehensive Financial Report for the City of Dover, Delaware Statistical Section Table 24 - Continued PROTECTION TYPE OF COVERAGE LIMIT IN DOLLARS Power Plants – Property & Boiler and Machinery Locations: VanSant Station Coverages: $50,000,000 Per Occurrence Agreed Amount, Special Extra Expense: $2,000,000 Errors & Omissions $2,000,000 Expediting Cost: $1,000,000 Property in the Course of Construction: $1,000,000 Earthquake: $10,000,000 Flood: $10,000,000 Debris Removal $2,500,000 Property in Transit $1,000,000 Demolition & Increase Cost of Construction $5,000,000 Unnamed Locations $500,000 Valuable Papers $100,000 Electronic Data Processing $1,000,000 Deductibles: $750,000 per Occurrence, except; $100,000 per Occurrence as respects Transit, In respect of Time Element loss (Extra Expense): 45 days per Occurrence, except; 72 hours per Occurrence in respect of Service Interruption Unmanned Aircraft Policy (Drones): Limit of Liability- Each Occ. $1,000,000 Medical Expenses $5,000 Physical Damage- Scheduled Limit Insured Value, Less Depreciation Newly Acquired Aircraft or Scheduled Aircraft Modified during Policy Period $10,000 In Motion Deductible 5% Not in Motion Deductible 5% Spare Engine and Spare Parts` $1,000 5% War, Hi-Jacking and Other Perils Exclusion cap $300,000 Third Party War Liability $1,000,000 Personal Injury Limit $1,000,000 Volunteer Special Accident: Accidental Medical Expense Benefits: Maximum Benefits $15,000 Deductible $100 Maximum Dental Limit $250 207 241

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Item 4. Memo to: Council From: David Hugg Date: February 23, 2022 SUBJ: BACKGROUND BRIEF – PAYMENT IN LEIU OF TAXES (PILOT) What is a PILOT? A Payment in Lieu of Taxes (PILOT) is a mechanism designed to offset a portion of unrealized real property taxes a jurisdiction would otherwise be eligible to receive as a function of having publicly owned non-taxable properties within their jurisdiction. In Delaware, Chapter XXX, section XX of the Delaware Code authorizes a pilot payment to county seats (Wilmington. Dover and Georgetown) for unrealized real property tax revenue because of state-owned properties located within the jurisdiction (courts, education, state offices and facilities, etc.). The Code sets forth a formula for computing the amount of the pilot, the properties eligible for consideration, a maximum amount available for distribution, and procedures for assessment and billing. Provisions of Delaware Code: § 8318. Compensatory payments for certain exempt properties owned by the State. (a) The county seat in each county shall appraise and assess real property taxes on all property owned by the State excluding properties owned by the Delaware Housing Authority, Delaware Solid Waste Authority, Delaware State University, or the University of Delaware, lying within their respective city limits. Each county seat shall annually submit statements of these appraisals and assessments unto the Secretary of the Department of Finance, said assessments and appraisals to be in accordance with their respective procedures for appraising and assessing real property. (b) The Secretary of Finance shall examine and inspect the aforementioned assessment and appraisals and shall have all rights to question the assessments and appeal any decisions regarding the same. If the Secretary of Finance is satisfied that the assessments and appraisals are accurate, then the Secretary shall direct payment to the County Seat according to the following schedule: (1) For those county seats with a population between 0–50,000 residents, the Secretary shall direct a payment of 30.8% of the tax assessed to said county seats. (2) For those county seats with a population above 50,000 residents, the Secretary shall direct a payment of 100.0% of the tax assessed to said county seats. (c) The total amount of payments made by the Secretary with respect to all county seats shall not exceed $3,900,000 in any state fiscal year. (d) In any fiscal year, if total compensatory payments, as calculated under subsection (a) of this section, exceeds the amount allocated in subsection (c) of this section, then the payments to be received by each county seat shall be the product of $3,000,000 multiplied by a fraction, the numerator of which is the payment that would otherwise be due to a county seat under subsections (a) and (b) of this section and the denominator is the total of all compensatory payments that would otherwise be due to all county seats pursuant to subsections (a) and (b) of this section. The Secretary of Finance has the right to withhold payment to any county seat until the assessments and appraisals of all 3 counties have been submitted and verified. Dover’s PILOT Computation: Dover has slightly more than 100 state-owned properties eligible for consideration. These have an assessed value of $285,248,000 with a taxable value of $1,183,779.20. (See July 2021 Billing). As you can 243

Item 4. see the city is authorized to bill at 30.8% of the potential tax so we receive $364,603.99. The actual amount paid by the State Department of Finance is somewhat higher ($432, 844.63 – which may be a function of the actual amount appropriated for this payment last year). The City “losses” almost 70% of the tax revenue that would otherwise have been paid if these were not state-owned property, a loss of $819,175.21. By way of reference that is about equivalent to a 2.32 cent increase in the tax rate (1 cent equals about $352,360.97 in revenue). There is a bill pending in the Senate (SB83) sponsored by Senator Sokola and Rep. Baumbach (and others) that would change the formula and bring Newark into the calculation, largely due to the significant land holdings of the University of Delaware. This bill increases the amount that can be applied to: “For those county seats with a population of 50,000 or less and having no more than 20% tax exempt property 36% of the tax assessed.” Using the 2021 taxable value of $1,183,779.20 the increase to 36% would result in a PILOT payment of $426,160.44 (increase of $61,556.45 without adjustment for appropriated funds). The bill retains the 100% provision for county sears having more than 50,000 people (Wilmington). Fundamental Issues: Why should the calculation be based on population with a percentage adjustment? What logic determines that tax exempt state property receives less services in Dover versus Wilmington? Why should the University of Delaware be treated differently in SB83 (UD property is not excluded in the existing code)? UD considers itself as a state agency when it is convenient, otherwise not The PILOT was established to address the impact of state lands on local taxes in the county seats which traditionally are the location of significant state facilities. Newark is not alone with various other state facilities, for example Smyrna is home of the Hospital for the Chronically ill and Milford has the veteran’s Home, along with various state facilities. Newark should not be treated differently from the other municipalities that are not county seats. Recommendations: Oppose SB83 and the addition of Newark to the PILOT pool of funding Request that the PILOT provisions be based solely on non-taxable value (i.e., 100% of the non-taxable value) not segregated by population and without any percentage adjustment and treat all county seats equally. Continue to apply the adjustment factor set forth in Section 8318 (d) of the existing code. 244

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