Anexo

ATTACHMENT # Genera! Fund Alternatives Fyo4 Alt. Revised of Minimum! hot % of % of Budget Revenue Current’ Revenue Alt. 2 Revenue Alt.3 Revenue Budget Balances (8%, no greater than 12%) $2,660,377 10.4% $2,037,517 8.0% $2,037,517 8.0% $2,037,517 8.0% Contingency (2% vs. 4%) 986,548 3.9% 509,379 2.0% 764,069 30% 4,018,758 4.0% Total Operating Reserves $3,646,925 14.3% $2.546.896 10.0% $2,801,586 11.0% $3,056,275 120% % of Revenues (excl. carry forward balance) FY 04 Revenues (excl. carry forward balance) ‘$25,468,960 Annual requirement over three years (minimum/altemative) $0 $0 $84,897 $169,793 Current policy is achieved; there is no requirement for funding Recreation Reserves or Capital Asset Reserves from our operating budget: 2004 1998 1999 2000 2001 2002 2003 2004 Revised General Fund - Budget Balance Budget $ 178,959 $ 409361 $ 35.912 $ 615,148 $ 1,267,982 $1,575,820 $1,654,816 $ 2,660,377 % of Revenue 1.3% 28% 02% 37% 71% 8.0% 6.7% 10.4% Actual $ 2,244,705 $1,625,521 $ 2,827,370 $2,305,166 § 2,266,936 $2,890,843 % of Revenue 14.7% 10.6% 175% 12.9% 11.4% 13.8% Budgeted to use $250, 826 General Fund - Contingency [Appropriation a _ & = ‘Budget $ 509,737 $ 555717 $ GO5,717 $ 655,717 $ 655,717 $ 441,780 - 982,788 $ 986,548 % of General Fund Revenues 3.6% 3.9% 4.0% 4.0% 37% 22% 4.0% 3.9% Actual $ 505,717 $ 555,717 $ 605,717 $ 655,717 §$ 685,446 $ 957,814 % of Revenue 3.3% 3.6% 3.7% 3.7% 3.4% 46% Att 7 Budget Balance Uses: Minimum? % of ot % of Timing of cash flows Parkland Reserve Current Revenue Alt.2 Revenue Alt. 3 Revenue Loss of revenues Credit Rating Parkland - current balance $ 631,278 2.5% $ 631,278 25% Parkland - annual appropriation o 0.0% 170,575 *® a7% Contingency Uses: $ 631,278 $ 801,853 \ Regulatory penalties Environmental accidents Arbitrage payments Storm/Hurricane related Capital Asset Reserve (Depreciation) $ 291,784 11% $ 500,000 20% $ 903,000 *-... 3.5% expenses Litigationlegal expenses Two approaches. One to maintain a reserve for emergency use only (equipment breakdowns) and use pay as CDBG findings you go for budgeted items, or set up an | & E Fund lke Electric and appropriate monies each year to accumulate a balance and have all purchases budgeted in the fund and it would carry its own budget balance. Current preference is an emergency account, unfil a formal debt policy is developed _ . . J

LF A (4/26/04) City of Dover Kent County Wastewater Fee Trends 2004 Actual Results 1996 1997 1998 1999 2000 2001 2002 2003 Revised Beginning Balance $ 168,909 $ 278,409 $ (986,265) $ (903,923) $ - $ 124,028 $ 206,875 $ 209,523 $ (454,376) Customer User Fees 2,869,357 A 2,399,975 2,436,182 2,452,087 2,512,562 2,686,790 2,814,567 2,778,521 2,761,592 Transfer from W/AWW Oper. = : ___ 300,000 * 865,000 *. - = 454,376 Total Sewer Adjustment Revenue $3,038,266 $2,678,384 678,384 $1,749,917 a 413,164 $2,542,562 $2,810,818 $3,021,462 $2,988,044 $2,761,592 | City's billing was changed [To pay down deficit} [$20 rate increase 4/99 Reduced Wastewater |To pay down deficit from quarterly to monthly, Operating Budget Balance includes one extra quarter ito offset deficit Bonds downgraded Kent County Fees $2,243,371 $3,446,082 $2,653,835 $2,264,788 $2,516,910 $2,603,943 $2,811,939 $3,442,420 $3,703,731 Budget Balance 794,895 _ (767,698) _ (903,918) __ 128,376 (4348) 206,875 _ 209,523 (454,376) __ (942,139) ‘Total Sewer Adjustment Expense $3,038,266 $2,678,384 $1,749,917 $2,413,164 $2,512,562 $2,810,818 $3,021,462 $2,988,044 $2,764,592 Gallons (1000's) 1,746,745 2,033,335 1,574,257 1,349,319 1,511,721 1,563,672 = 1,567,500 County Adj. per 1,000 gallons $ 158 $ 68 ¢ 1.68 $ 8 Ss 168 $ 168 §$ 1.85 Wastewater rate per 1,000 gallons $ 121. $ 1.21. $ 1.21. $ 1.41. $ 1.41, §$ 1.41 $ 1.41 1,872,843 185 § 165 $ 2,015,009 $ Note: The 1997 Increased expenses were a result of wet weather (inflow/infiltration) combined with an extra quaterly bill due to a change in the County's billing Original Budgeted Revenues & Expenses (excluding budget balances) Budget Customer User Fees $2,313,291 $2,453,647 $2,735,040 $2,500,000 $2,716,053 $2,545,200 $2,899,875 $2,786,979 $2,951,083 Kent County Fees $2,310,672 $2,448,724 $2,735,000 $2,650,000 $2,716,392 $2,545,200 $2,914,494 $2,993,854 $2,953,731 L

Water/Wastewater Fund Alternatives LF A (426104) F¥04 Alt. 1 Revised %of Minimum! of %ot %ot %ot Budget Revenue Current Revenue Alt. 2 Revenue Alt3 Revenue Alta Revenue Aggregated Budget Balancas (minimum 10% vs. 17%) $969,898 95% $1,016,179 10.0% $1,219,414 120% $1,422,650 140% — $1,727,504 17.0%| Contingency (2% vs. 4%) 950,184 64% 203.236 20% 406471 40% — 406,471 40% 406.471 4.0%| Total Operating Reserves $1,620,082 159% $1,219,414 12.0% $1,625,886 16.0% $1,829,122 180% $2,133.975 21.0% '% of Revenues (excl. carry forward balance) FY 04 Revenues (excl. carry forward balance) $10,161,787 [Annual requirement over three years (minimurvalternative) $0 $0 $135,400 $203,236 $304,854 Current policy is achieved; 2004 [Buciget Balance Uses: 1998 1999 2000 2004 2002 2003 2004 Revised Timing of cash flows WaterfWastewater - Budget Balance (ipistorraaied _) Frances reread) Loss of revenues - Kraft ¥ = Credit Rating Aggregate Budget Balance $ 38,158 $ (601,308) $ 849.451 $ 983,760 $ 794319 $1,318,746 $1,608,194 § 960808 '% of Revenue 0.4% 8.0% 93% 11.0% 8.6% 13.1% 15.5% 95% | Contingency Uses: Regulatory penalities Actual S 763,073 ¥§ 1,925,635 $2133545 $1,822,165 $1,681,721 $1,088,403 Environmental accidents % of Revenue S%. 15.0% 23.3% 23.5% 179% 10.8% Arbitrage payments: ‘Storm/Hurricane related expenses Water/Wastewater - Contingency [Ad Deft balance on" | Litigationfegat expenses a —— Contractural services Budget $ 223,481 $ 273.481 $ 473,481 $ 678,247 $ 678,247 $ 658971 $ 458971 $ 650,184 6 of Revenue 2.6% 3.2% 5.2% 7.6% 7A% 65% 44% 6.4%) investment Loss - Actual $ 223,481 $ 278,247 $ 478.247 $ 621,144 737,016 $ 631,247 $124,972 1% of Revenue 25% 2.2% 5.2% 8.0% 78%, 63% Operating emergency purchase $57,103 | Alt. 1 7 Minimum %of %oF wot Imy si Account: Current Revenue Al. 2 Revenue Alt. 3 Revenue Example of uses: Capital Asset Reserve (Depreciation) S$ 200,000 % 2.0% $ S00.000h 49% $1,000,000 98% Brown water projects ‘Annual Appropriation ) [Minimum Balance } [Minimum Balance Inflow/infiltration projects. Capital equipment impact Fee Reserve (expansion projects) 8 1,148,026 11.3% $1,000,000 98% 1,243,010 200% breakdowns SON of Wastewater Emergency repairs on ume 8 wes Contingency - determined annually $ - 0.0% $ 386,080 20.0% *~ contingency balance to cover lorders on projects. ‘Two approaches to capital purchases: One to maintain a reserve for emergency use only (equipment breakdowns & infrastructure improvements) and use pay as you go for budgeted items, of set up an account in the Improvement & Extension Fund in which to appropriate monies each year and accumulate a minimum balance. The balance would be used to cover extra funds needed to purchase assets in any year In which the capital expenses exceed the annual appropriation (depreciation).

Electric Revenue Fund Alternatives LFA @26I04) FYO4 Alt. 1 Revised of = Minimum’ % of % of ch of Budget Revenue Current Revenue AL 2 Revenue Alt. 3 Revenue Aggregated Budget Balances (minimum 12% vs. 5%) $3,975,036 6.8% $4,709,071 8.0% $5,886,338 10.0% $7,063,808 12.0% | Contingency (1% vs. 2%) 598,043 1.0% 1,177,268 2.0% 1.177.288 2.0% 1177268 2.0% ‘Total Operating Reserves $4,573,079 7.8% $5,886,338 10.0% $7,083,606 12.0% $8,240.874 14.0% % of Revenues (excl. carry forward balance) FY 04 Revenues (excl. carry forward balance) «$58,863,384 Annual requirement over three years (minimum/atternative) $0 $437,753 $830,176 $1,222,598 Current policy is achieved; Insurance Deductible Reserve $733,919 1.2% $250,000 0.4% Rate Stabilization $1,402,746 [Annual requirement over three years (to achieve 10%) Duke rebates: $491,952 from FYO4 and $910,824 rom FY03, 2.4% 3,738,114 & 6.3% wre [Budget Balance Uses: 4998 1939 2000 2001 2002 2004 Timing of cash flows Electric Revenue - Budget Balance Loss of revenues - Kraft Credit Rating Budget $ 1,097,557 $ 2,708 $ 968,788 $1,288,291 $1,420,770 $2,828,075 $2,876,612 9% of Revenue 2.4% 0.0% 1.9% 2.4% 26% 5.1% 5.0% Contingency Uses: Regulatary penalties Actual $ 1,385,026 $ 597,144 $ 145,273 § 673,034 $4,104,367 $5,089,426 Environmental accidents 9 of Revenue 29% 1.2% 03% 13% 75% 88% Arbitrage payments Storm/Huricane related Electric - Contingency expenses. Litigation/legal expenses Budget (1994 lee Storm resulted in $517,000 of reimbursable expenses $ 408,699 $ 598,043 Contractural services 5% of Revenue from FEMA; mostly contracted services. They were not reimbursed 0.7% 4.0% by FEMA until the following fiscal year.) [Actual $ 580,643 3% of Revenue 1.0% Ait. 1 Minimums —_% of hot % of Improvement & Extension Fund Accounts Current = Revenue Alt. 2 Revenue Alt. 3 Revenue Example of use: Emergency substation Depreciation Reserve 10,000,000 17.0% repairs; Est, cost of substation replacement $19,000,000 Transformers Future Capacity Reserve $10,000,000 17.0% Partial or complete [Current balance $8,113,132 financing of major Contingency - determined annually $ - 0.0% $2,384,022 20.0% ,

ATTACHMENT #2 RESOLUTION TO APPROVE THE 2004 CDBG ACTION PLAN WHEREAS, the City of Dover is entitled to $326,000 through the United States Department of Housing and Urban Development's Community Development Block Grant Program; and WHEREAS, the City of Dover has prepared the 2004 Community Development Block Grant Action Plan, in accordance with United States Department of Housing and Urban Development guidelines, that serves as the primary planning document for identifying and meeting the housing and community development needs for the low and moderate-income residents of Dover; and WHEREAS, the City of Dover is in favor of utilizing the Community Development Block Grant funds for community development purposes in accordance with the National Community Development objectives of benefitting low and moderate income families, eliminating slums and blight, and meeting other community development objectives; and WHEREAS, the United States Department of Housing and Urban Development required the City of Dover to submit Consolidated Plan, and an Action Plan for Application for Federal Assistance including the proposed use of funds and including certain certifications and policies to obtain its $326,000 Entitlement and usc of $82,043 in program income for eligible activities; and WHEREAS, the City of Dover has prepared the attached Application for Federal Assistance, and presented it at an advertised public hearing held on April 27, 2004. NOW, THEREFORE, BE IT RESOLVED THAT THE MAYOR AND COUNCIL OF THE CITY OF DOVER approve the 2004 Community Development Block Grant Action Plan, and application for Federal Assistance included in the Action Plan along with certifications, and policies attached and authorize its forwarding to the United States Department of Urban Development for consideration. ADOPTED: *