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COUNCIL COMMITTEE OF THE WHOLE AGENDA NOVEMBER 29, 2016 - 6:00 P.M. CITY HALL COUNCIL CHAMBERS 15 LOOCKERMAN PLAZA DOVER, DELAWARE PUBLIC COMMENTS ARE WELCOMED ON ANY ITEM AND WILL BE PERMITTED AT APPROPRIATE TIMES. WHEN POSSIBLE, PLEASE NOTIFY THE CITY CLERK (736-7008 OR E-MAIL AT CITYCLERK@DOVER.DE.US) SHOULD YOU WISH TO BE RECOGNIZED. SAFETY ADVISORY AND TRANSPORTATION COMMITTEE AGENDA ADDITIONS/DELETIONS 1. BRIEFING ON STATE STREET AND SCULL TERRACE CROSSING (COMMITTEE ACTION NOT REQUIRED) 2. REQUEST FOR WAIVER - APPENDIX B - ZONING, ARTICLE 5 - SUPPLEMENTARY REGULATIONS, SECTION 17 - EMERGENCY ACCESS REQUIREMENTS - WAIVER OF EMERGENCY REAR ACCESS REQUIREMENT FOR THE REDEVELOPMENT OF LIBERTY COURT APARTMENTS (APPLICATION S-16-22) (THE PLANNING COMMISSION RECOMMENDED APPROVAL OF THE WAIVER FOR THE ELIMINATION OF THE EMERGENCY REAR ACCESS) 3. BRIEFING ON VIOLENT CRIME WITHIN THE CITY (COMMITTEE ACTION NOT REQUIRED) 4. REQUEST FOR FOUR-WAY STOP SIGN - WYOMING AVENUE AND WESTVIEW TERRACE (DEFERRED DURING THE MEETING OF SEPTEMBER 27, 2016) (STAFF RECOMMENDS THE INSTALLATION OF THE FOUR-WAY STOP CONDITION AT THE INTERSECTION OF WYOMING AVENUE AND WESTVIEW TERRACE; HOWEVER, FINAL ACTION SHOULD CONSIDER ANY ADDITIONAL PUBLIC TESTIMONY RECEIVED AT THE COMMITTEE MEETING) 5. QUARTERLY UPDATE - BICYCLE/PEDESTRIAN SUBCOMMITTEE (COMMITTEE ACTION NOT REQUIRED) 6. ADJOURNMENT OF SAFETY ADVISORY AND TRANSPORTATION COMMITTEE MEETING

COUNCIL COMMITTEE OF THE WHOLE AGENDA - NOVEMBER 29, 2016 Page 2 UTILITY COMMITTEE AGENDA ADDITIONS/DELETIONS 1. MUNICIPAL SEPARATE STORM SEWER SYSTEM (MS4) INVENTORY AND INSPECTION PROPOSAL (STAFF RECOMMENDS AUTHORIZING THE FIVE (5) YEAR PROPOSAL WITH KCI TECHNOLOGIES, IN THE AMOUNT OF $329,740, INITIATING WITH $65,948 IN FY17) 2. ADJOURNMENT OF UTILITY COMMITTEE MEETING LEGISLATIVE, FINANCE, AND ADMINISTRATION COMMITTEE AGENDA ADDITIONS/DELETIONS 1. NORTH STREET SIDEWALK IMPROVEMENTS - NEW PROJECT - DELDOT TRANSPORTATION ALTERNATIVES PROJECT (STAFF IS REQUESTING AUTHORIZATION FROM CITY COUNCIL TO SIGN THE PROJECT AGREEMENT WITH DELDOT AND BEGIN ASSEMBLING THE REQUIRED FUNDS FOR THE MATCH. THE STATE HAS REQUESTED THAT ALL MATCHING FUNDS BE TRANSFERRED TO DELDOT NO LATER THAN FEBRUARY/MARCH 2017.) 2. DRAFT COMPREHENSIVE ANNUAL FINANCIAL REPORT (CAFR) (COMMITTEE ACTION NOT REQUIRED) 3. ADJOURNMENT OF LEGISLATIVE, FINANCE, AND ADMINISTRATION COMMITTEE MEETING ADJOURNMENT OF COUNCIL COMMITTEE OF THE WHOLE MEETING /TM S:\AGENDAS-MINUTES-PACKETS-PRESENTATIONS-ATT&EXH\COMMITTEE-AGENDAS\2016\11-29-2016 CCW AGENDA.WPD 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.

City of Dover PETITION TO WAIVE ZONING ORDINANCE PROVISION: ELIMINATION OF EMERGENCY ACCESS REQUIREMENTS Before the City Council Committee of the Whole: Safety Advisory & Transportation Committee November 29, 2016 Plan Title: Redevelopment of Liberty Court Apartments (S-16-22) Plan Type: Site Development Plan Property Location: On the north side of Walker Road opposite the end of Independence Boulevard Property Addresses: 1289 Walker Road Site Area: 7.93 ac. +/- Present Zoning: RM-2 (Medium Density Residence Zone) Present Use: 14 Apartment Buildings (Total 108 units) and Community Facilities Proposed Use: 13 Apartment Buildings (Total 100 units) and Community Facilities Waiver Recommended: Zoning Ordinance Article 5 § 17.3 and 17.5(a) Elimination of the Emergency Rear Access PLAN SUMMARY This Site Development Plan proposes to demolish the fourteen apartment buildings at Liberty Court Apartments and construct thirteen new buildings on the existing foundations, leaving one building not reconstructed. The redevelopment would reduce the number of dwelling units on site from 108 to 100 dwelling units. The two properties on site are to be consolidated into one. The properties consist of a total of 7.93 acres and are located on the north side of Walker Road opposite the end of Independence Boulevard. The property is zoned RM-2 (Medium Density Residence Zone). The owner of record is the Delaware State Housing Authority and project redeveloper is Liberty Court Preservation Corporation. Property Address: 1289 Walker Road. Tax Parcels: ED-05-067.18-01-72.01-000 and ED-05-067.18-01-72.00-000. Council District 4. Plan of The Liberty Court Apartments Site The project proposes demolition of the fourteen apartment buildings on site and reconstruction of thirteen of them. The buildings have been given letter designations A through N. Building I is to be demolished entirely. Building L will be relocated to the current location of Building I. All the other buildings are to be rebuilt on their original foundations; however, the new dwelling units are slightly larger than the old ones, requiring corresponding construction of new foundation segments to square-off the footprint. The reduction in the number of buildings results in a reduction of the number of dwelling units, from 108 to 100 apartment units. P. O. Box 475 Dover, DE 19903 Community Excellence Through Quality Service

S-16-22 Redevelopment of Liberty Court Apartments Petition to Waive a section of the Zoning Ordinance Planning Commission Report from November 21, 2016 Meeting Page 2 of 4 Other improvements planned for the site include a new fire lane to serve Buildings K, M, and N, and realignment and curbing of the existing main fire lane. New stormwater management areas and landscaping are also proposed. Site Layout: The two-story apartment buildings are generally oriented inward, facing each other across shared sidewalks or the main fire lane rather than facing the street frontage or the parking lot. The buildings are divided into two to six sections, each of which has two dwelling units, one on each floor. Each section is proposed to have its own entrance walk leading either to the site’s sidewalk network or the main fire lane. The main fire lane and the parking lot together make a loop traversable by vehicles around the interior and eastern edge of the site, but the fire lane is closed to use by non-emergency vehicles. Common areas of the complex include the community building located east of the center of the site, a playground to the south of the community building, a basketball court to the south of the playground, and common open space to the west of the community building. There is also a pavilion on the Walker Road frontage that serves among other functions as seating area for a nearby bus stop. Entrances There are two entrances to the site. The eastern one is a typical parking lot entrance and is not proposed to change with the redevelopment. The narrower western one, however, leading into the main fire lane, more closely resembles a residential driveway. Street view imagery shows a chain across this entrance preventing entry. Though the fire lane is to be upgraded it will remain closed to use by non-emergency vehicles. Waiver Request: Elimination of Emergency Rear Access Requirements The Zoning Ordinance requires an 18-foot secondary fire lane to provide emergency access to the rear of the two story apartment buildings (Article 5 §17.5(a)). The Ordinance provides for consideration of a waiver of the emergency access requirements; see Code citation as follows: Article 5 Section 17. - Emergency access requirements. (1) General purpose. The purpose of this section is to establish standards and requirements for the fire protection of structures and inhabitants by providing emergency vehicle access to structures that enable the City of Dover Bureau of Fire to approach and attack fires in such a way that there is a reduced threat to the lives and safety of citizens. (2) Waiver. Should the planning commission determine, after demonstration by an applicant, that alternative means of fire protection can be provided which are equivalent to or greater than the public safety protection provided by this ordinance, then the planning commission may recommend to [the] city council to waive certain provisions of this ordinance that are not required under other city or state laws. The plan currently does not provide rear emergency access to most of the buildings on site; the applicant is requesting a waiver for the elimination of this requirement. The proposed buildings have fire protection provisions under the Fire Code including the following: sprinkler systems (wet and dry fire protection systems), fire alarms in the building and partial fire lane coverage of the buildings. As previously mentioned a new 24-foot-wide primary fire lane will be constructed

S-16-22 Redevelopment of Liberty Court Apartments Petition to Waive a section of the Zoning Ordinance Planning Commission Report from November 21, 2016 Meeting Page 3 of 4 between buildings K, M, and N. The Fire Marshal’s comments related to fire protection measures for the project are attached to this report. The requested waiver is further summarized in the following chart: Zoning Ordinance Required Proposed Waiver Emergency Rear Access Eighteen (18) None. The existing site Elimination of for Two to Three story foot secondary layout does not have rear the required rear apartment buildings fire lane for rear emergency access, and the fire lane. access site layout is not proposed to be significantly changed. Staff Recommendation on Waiver Request for Elimination of Emergency Rear Access Requirement Planning Staff recommends approval of the Waiver Request to eliminate the 18-foot rear fire lane requirement. The proposed new buildings are proposed to be sprinklered and include fire alarm systems to give them public safety protections in excess of those provided by the Zoning Ordinance. The applicant has worked closely with the Fire Marshal’s Office to provide an appropriate fire protection strategy for the existing site, including a new fire lane and perimeter access around all buildings greater than the minimum required. The Fire Marshal has provided attached comments regarding compliance with fire protection regulations. Findings and Recommendations of the Dover Planning Commission A written waiver request for the elimination of the rear access requirement was submitted for consideration by the Planning Commission. Planning Commission formulated a recommendation as part of the review of the project. This Report with their recommendation is forwarded to the Council Committee of the Whole: Safety Advisory and Transportation Committee and City Council who has the final authority to grant the request for the elimination of the emergency rear access for the apartments. The Planning Commission at its meeting on November 21, 2016 reviewed the proposed waiver request as part of its review of the Site Development Plan for the Redevelopment of Liberty Court Apartments.  The Planning Commission granted conditional approval of the Site Development Plan to re-establish Liberty Court Apartments to consist a total of thirteen (13) apartment buildings (100 units). In their approval the Planning Commission noted the desirability of the new units over the old ones and that no current residents would be displaced.  The approval is subject to the Development Advisory Committee Report (with agency comments) and including adoption of the Staff Recommendations.  The Planning Commission recommends approval of the waiver for the Elimination of the Emergency Rear Access. Pursuant to Zoning Ordinance, Article 5 §17.5(a), the Planning Commission recommended approval of the waiver for the elimination of the

S-16-22 Redevelopment of Liberty Court Apartments Petition to Waive a section of the Zoning Ordinance Planning Commission Report from November 21, 2016 Meeting Page 4 of 4 Emergency Rear Access requirement for an eighteen (18) foot secondary fire lane. There was no further comment on the approval.  The motion passed unanimously 8-0 of the members present. (A complete Excerpt of the Draft Planning Commission Meeting Minutes of November 21, 2016 for this application is not currently available.) Attachments:  Plan Sheets: SP-1 Cover Plan, SP-2 Boundary and Existing Conditions Survey Plan, and SP-3 Site Development Plan  Waiver Request of November 9, 2016  DAC Report Comments from the Fire Marshal’s Office *The complete application file S-16-22 Redevelopment of Liberty Court Apartments including complete plan set and full Development Advisory Committee (DAC) Report are available at the Planning Office.

FOR PROPERTY KNOWN AS: SITE SITE CO OR DELA D W (NA INAT ARE 201 E SY STA 1, E ST T NCE D PO EM E R ROA CH NA KE 201 D '8 NDE RD 3 WA L 0) EPE A INDOULEV B LOCATION MAP SCALE: 1" = 400' LOCATION MAP SCALE: 1" = 1200' GENERAL NOTES: PLAN DATA: APPLICATION NO. * S-16-22 1. NO DEBRIS WILL BE BURIED ON THIS SITE. ALL DEMOLITION WASTE AND DEBRIS SHALL BE THE RESPONSIBILITY OF THE CONTRACTOR AND SHALL BE DISPOSED OF IN ACCORDANCE WITH ALL LOCAL, STATE AND FEDERAL REGULATIONS. PARCEL I.D. NOS. * ED-05-067.18-01-72.00-00001 & ED-05-067.18-01-72.01-00001 2. THIS DRAWING DOES NOT INCLUDE NECESSARY COMPONENTS FOR CONSTRUCTION SAFETY. ALL CONSTRUCTION MUST BE DONE IN PROPERY ADDRESS * 1289 WALKER ROAD COMPLIANCE WITH THE OCCUPATIONAL SAFETY AND HEALTH ACT OF 1970 AND ALL RULES AND REGULATIONS THERETO APPURTENANT. DOVER, DE 19901 3. EXISTING UTILITIES ARE SHOWN IN ACCORDANCE WITH THE BEST AVAILABLE INFORMATION COMPLETENESS OR CORRECTNESS THEREOF DEED REFERENCE * DR: U 0047, 0233 & N 0050, 0165 IS NOT GUARANTEED. IT SHALL BE THE CONTRACTOR'S RESPONSIBILITY TO CONTACT THE UTILITY COMPANIES INVOLVED IN ORDER TO SECURE THE MOST ACCURATE INFORMATION AVAILABLE AS TO UTILITY LOCATION AND ELEVATION. NO CONSTRUCTION AROUND OR ZONING DISTRICT * RM-2 ADJACENT TO UTILITIES SHALL BEGIN WITHOUT NOTIFYING THEIR OWNERS AT LEAST 48 HOURS IN ADVANCE. THE CONTRACTOR SHALL TAKE THE NECESSARY PRECAUTIONS TO PROTECT THE EXISTING UTILITIES AND MAINTAIN UNINTERRUPTED SERVICE AND ANY DAMAGE SEWAGE DISPOSAL * CITY OF DOVER DONE TO THEM DUE TO HIS/HER NEGLIGENCE SHALL BE IMMEDIATELY AND COMPLETELY REPAIRED AT THE CONTRACTOR'S EXPENSE. TO SEWERAGE IS SUBJECT TO APPROVAL OF THE CITY OF DOVER DEPARTMENT OF PUBLIC WORKS LOCATE EXISTING UTILITIES IN THE FIELD PRIOR TO CONSTRUCTION, THE CONTRACTOR SHALL CONTACT MISS UTILITY OF DELMARVA AT AND THE STATE OF DELAWARE DEPARTMENT OF NATURAL RESOURCES AND ENVIRONMENTAL CONTROL. LEAST THREE (3) CONSECUTIVE WORKING DAYS PRIOR TO EXCAVATION, AT 1-800-282-8555. WATER SUPPLY * CITY OF DOVER 4. THE CONTRACTOR SHALL PRESERVE ALL TREES AND LANDSCAPING ON THE SITE EXCEPT WHERE NECESSARY TO CONSTRUCT PROPOSED WATER IS SUBJECT TO THE APPROVAL OF THE CITY OF DOVER DEPARTMENT OF PUBLIC WORKS IMPROVEMENTS.\ AND THE DELAWARE STATE DEPARTMENT OF NATURAL RESOURCES AND ENVIRONMENTAL CONTROL AND THE DELAWARE DIVISION OF PUBLIC HEALTH. 5. A WETLANDS ASSESSMENT REPORT DATED JUNE 2, 2016, PREPARED BY COMPLIANCE ENVIRONMENTAL, INC., INDICATED THAT THERE ARE NO REGULATED WETLANDS PRESENT WITHIN, OR WITHIN 15 FEET, OF THE FENCED AREA OF THE SITE. NO DISTURBANCE OUTSIDE OF THE OWNER * DELAWARE STATE HOUSING AUTHORITY FENCED AREA IS PROPOSED FOR THIS PROJECT. C/O CHRISTOPHER WHALEY 18 THE GREEN 6. THE STATE INVENTORY OF NATURAL AREAS HAS BEEN EXAMINED AND NO STATE OR FEDERALLY REGULATED FLOODPLAINS OR OTHER DOVER, DE 19901 CRITICAL AREAS WERE FOUND TO EXIST WITHIN THE WORK SCOPE AREA. PHONE: 302-739-4263 EMAIL: chrisw@destatehousing.com 7. THIS SITE IS LOCATED WITHIN ZONE "X", AREAS DETERMINED TO BE OUTSIDE OF THE 0.2% ANNUAL CHANCE FLOOD, AS DESIGNATED ON THE FLOOD INSURANCE RATE MAP NUMBER 10001C0166H EFFECTIVE MAY 5, 2003 TOTAL PARCELS EXISTING * 2 (PARCELS TO BE COMBINED & PARCEL LINE TO BE EXTINGUISHED BY THIS PLAN) TOTAL PARCELS PROPOSED * 1 8. THIS DEVELOPMENT WAS APPROVED / CONSTRUCTED PRIOR TO THE ADOPTION OF THE CITY'S ZONING ORDINANCE IN 1975 AND THEREFORE PORTIONS OF THE SITE MAY BE NONCONFORMING WITH CONTEMPORARY DISTRICT REGULATIONS. IT IS THE INTENT OF THIS LOT AREA RATIONALE * GROSS AREA = 345,372 S.F. (100.00%) PROJECT TO NOT INCREASE THE DEGREE OF ANY PRE-EXISTING NONCONFORMITY. OPEN SPACE = 173,136 S.F. (50.13%) TOTAL IMPERVIOUS COVERAGE = 172,236 S.F. (49.87%) 9. NORMAL MAINTENANCE AND REPAIR, STRUCTURAL ALTERATION IN, AND MOVING, RECONSTRUCTION OR ENLARGEMENT OF A BUILDING BUILDING COVERAGE AREA (INCLUDES PAVILION) = 60,939 S.F. (17.64%) WHICH DOES NOT HOUSE A NONCONFORMING USE, BUT IS NONCONFORMING AS TO THE DISTRICT REGULATIONS FOR LOT AREA, LOT REMAINING IMPERVIOUS AREAS = 111,297 S.F. (32.23%) WIDTH, FRONT YARD, SIDE YARD, REAR YARD, MAXIMUM HEIGHT, MAXIMUM LOT COVERAGE, OR MINIMUM LIVABLE FLOOR AREA PER DWELLING IS PERMITTED IF THE SAME DOES NOT INCREASE THE DEGREE OF, OR CREATE ANY NEW NONCONFORMITY WITH SUCH BULK REGULATIONS TABLE * REQUIRED PROVIDED REGULATIONS IN SUCH BUILDING. MIN. LOT AREA/D.U. (S.F.) 3000 3454 10. NOTHING IN ARTICLE 7. - NONCONFORMING BUILDINGS AND USES, IN THE CITY CODE, SHALL BE DEEMED TO PREVENT NORMAL MINIMUM PER BUILDING REQUIRED PROVIDED MAINTENANCE AND REPAIR OF ANY BUILDING, OR THE CARRYING OUT, UPON THE ISSUANCE OF A BUILDING PERMIT, OF MAJOR LOT AREA (AC.) 1.0 0.71 LOT DEPTH (FT.) 125 N/A STRUCTURAL ALTERATIONS OR DEMOLITIONS NECESSARY IN THE INTEREST OF PUBLIC SAFETY. IN GRANTING SUCH A PERMIT, THE CITY FRONT YARD (FT.) 30 48.5 PLANNER SHALL STATE THE PRECISE REASON WHY SUCH ALTERATIONS WERE DEEMED NECESSARY. SIDE YARD (FT.) 20 24.1 TOTAL SIDE YARDS (FT.) 40 48.4 11. A VARIANCE WILL BE REQUESTED FROM THE STATE OF DELAWARE FOR FULL COMPLIANCE WITH THE SEDIMENT AND STORMWATER REAR YARD (FT.) 30 27.0 REGULATIONS. IT IS ANTICIPATED THAT SOME CONTEMPORARY STORMWATER MANAGEMENT PRACTICES, FOR NEW PAVEMENT AREAS MAY BE REQUIRED BY THE STATE. POTENTIAL AREAS FOR THESE PRACTICES ARE SHOWN, CONCEPTUALLY, ON THE SITE PLAN. MAXIMUM PERMITTED REQUIRED PROVIDED BUILDIING HT./STORIES (FT.) 35/3 32/2 12. GENERALLY, EXISTING SITE GRADES WILL BE MAINTAINED OTHER THAN CHANGES NECESSARY TO INSTALL NEW PAVEMENT AREAS AND TO LOT COVERAGE (%) 60 49.9 IMPLEMENT STORMWATER BEST MANAGEMENT PRACTICES (BMPS) AS MAY BE REQUIRED BY DNREC. NO. DWELLING UNITS PER BUILDING 24 12 13. HYDRANT CONNECTIONS BY THE CONTRACTOR ARE PROHIBITED. THIS METHOD MAY NOT BE USED DURING ANY PHASE OF THE PROJECT. MONUMENTS * 5 FOUND __ PLACED 14. ANY EXISTING WATER LINES NOT TO BE UTILIZED BY THE PROPOSED FACILITY MUST BE PROPERLY ABANDONED AT THE MAINS IN HORIZONTAL DATUM * NAD 83 / NA 2011 EPOCH 2010.0.0 ACCORDANCE WITH THE CITY OF DOVER DEPARTMENT OF PUBLIC WORKS SPECIFICATIONS AND REQUIREMENTS. VERTICAL DATUM * NAVD '88 15. THE SITE CONTRACTOR SHALL CONTACT THE CITY OF DOVER PUBLIC WORKS CONSTRUCTION MANAGER AT (302) 736-7025 PRIOR TO THE PARKING RATIONALE * 100 GARDEN APARTMENT UNITS @ 2 SPACES FOR EACH D.U. START OF CONSTRUCTION. A REPRESENTATIVE FROM THE CITY OF DOVER DEPARTMENT OF PUBLIC WORKS MUST OBSERVE AND APPROVE ALL CITY OWNED WATER AND SANITARY SEWER INTER-CONNECTIONS AAND TESTING. ALL WATER TAPS MUST BE PERFORMED BY A CITY OF TOTAL PARKING REQUIRED : = 200 SPACES DOVER APPROVED CONTRACTOR. THE PROPOSED LOCATION FOR THE WATER CONNECTION MAY NEED TO BE ADJUSTED IN THE FIELD DUE TOTAL PARKING FURNISHED: = 175 SPACES (INCLUDING 16 HANDICAPPED SPACES) TO CONDITIONS OF THE EXISTING MAIN. POSSIBLE CONDITIONS THAT WOULD REQUIRE TAPPING RELOCATION INCLUDE PROXIMITY TO PIPE JOINTS, OTHER TAPS, CONCRETE ENCASEMENTS, CONFLICT WITH OTHER UTILITIES, AND THE LIKE. TEST HOLES MUST BE PERFORMED BY SITE SLOPE * 1 - 2 %± THE CONTRACTOR TO DETERMINE THE BEST TAPPING LOCATION. THE CITY OF DOVER WILL NOT BE HELD RESPONSIBLE FOR FIELD CONDITIONS REQUIRING ADJUSTMENT OF THE TAPPING LOCATION OR FOR ANY WORK REQUIRED BY THE CONTRACTOR TO MAKE AN DELDOT PROJECT ID NUMBER * N/A APPROPRIATE AND LAWFUL CONNECTION. PROPERTY LINE PRESENT USE * 108 GARDEN APARTMENTS SCALE: 1"=60' BUILDING SETBACK LINE 16. ANY EXISTING SANITARY SEWER LINES NOT TO BE UTILIZED BY THE PROPOSED FACILITY MUST BE PROPERLY ABANDONED AT THE MAINS IN PROPOSED USE * 100 GARDEN APARTMENTS ACCORDANCE WITH THE CITY OF DOVER DEPARTMENT OF PUBLIC WORKS SPECIFICATIONS AND REQUIREMENTS. RIGHT-OF-WAY LINE EASEMENT LINE GROWTH ZONE * INSIDE 17. PART II, CHAPTER 180, ARTICLE III, SECTION 180-10 OF THE CODE OF KENT COUNTY REQUIRES THAT "NO PERSON SHALL DISCHARGE OR CAUSE TO BE DISCHARGED ANY STORMWATER, SURFACE WATER, UNCONTAMINATED GROUNDWATER, ROOF RUNOFF, SUBSURFACE DRAINAGE, UNCONTAMINATED NON-CONTACT COOLING WATER OR UNPOLLUTED INDUSTRIAL PROCESS WATERS TO ANY SANITARY PARCEL ID NOS.: CENTERLINE TREELINE PROXIMITY TO T.I.D. * ED-05-067.18-01-72.00-00001 & ED-05-067.18-01-72.01-00001 SEWER", THIS SHALL INCLUDE CONDENSATE. SEC. 110-231 OF THE CITY OF DOVER CODE DEFINES STORM SEWER AS "... ANY SYSTEM USED INVESTMENT LEVEL AREA * 1 FOR CONVEYING RAIN WATER, SURFACE WATER, CONDENSATE, COOLING WATER OR SIMILAR WASTES, EXCLUSIVE OF SEWAGE." THE WETLAND DELINEATION CONTRACTOR, DEVELOPER, OWNER AND DESIGNEES SHALL ENSURE DURING CONSTRUCTION THAT NO ILLEGAL DISCHARGES TO THE ANSI TYPE "A" UNITS SANITARY SEWER SYSTEM ARE CREATED WITH THE SITE IMPROVEMENTS. SITUATE IN PROPOSED PAVEMENT PROPOSED STORMWATER MANAGEMENT AREA EXISTING PROPOSED SS MH SANITARY SEWER S W.V. KENT COUNTY * STATE OF DELAWARE WATER LINE W 1. ALL ENTRANCES SHALL CONFORM TO THE DELAWARE DEPARTMENT OF TRANSPORTATION'S (DELDOT'S) CURRENT DEVELOPMENT C.B. STORM SEWER COORDINATION MANUAL (DCM) AND SHALL BE SUBJECT TO ITS APPROVAL. ELECTRIC E U.P. 2. SHRUBBERY, PLANTINGS, SIGNS AND/OR OTHER VISUAL BARRIERS THAT COULD OBSTRUCT THE SIGHT DISTANCE OF A DRIVER PREPARING TO ENTER THE ROADWAY ARE PROHIBITED WITHIN THE DEFINED DEPARTURE SIGHT TRIANGLE AREA ESTABLISHED ON THIS CONTOUR 8 PLAN. IF THE ESTABLISHED DEPARTURE SIGHT TRIANGLE AREA IS OUTSIDE THE RIGHT-OF-WAY OR PROJECTS ONTO AN ADJACENT HYDRANT Y PROPERTY OWNER'S LAND, A SIGHT EASEMENT SHOULD BE ESTABLISHED AND RECORDED WITH ALL AFFECTED PROPERTY OWNERS TO SPOT ELEVATIONS X (18.50) MAINTAIN THE REQUIRED SIGHT DISTANCE. CULVERT (w/F.E.S.) 3. SUBDIVISION STREETS CONSTRUCTED WITHIN THE LIMITS OF THE RIGHT-OF-WAY ARE PRIVATE AS SHOWN ON THIS PLAN AND ARE TO BE MAINTAINED BY THE DEVELOPER, PROPERTY OWNERS OR BOTH. THE STATE OF DELAWARE ASSUMES NO MAINTENANCE WATER LINE W RESPONSIBILITIES FOR THE FUTURE MAINTENANCE OF THESE STREETS. GAS LINE GAS 4. THE SIDEWALK SHALL BE THE RESPONSIBILITY OF THE DEVELOPER, THE PROPERTY OWNERS OR BOTH WITHIN THIS SUBDIVISION. THE SWALE CENTERLINE STATE OF DELAWARE ASSUMES NO RESPONSIBILITY FOR THE FUTURE MAINTENANCE OF THE SIDEWALK. COVER PLAN SHEET NO. SP-1 IRON PIPE FOUND BOUNDARY AND EXISTING CONDITIONS SURVEY PLAN SHEET NO. SP-2 5. TO MINIMIZE RUTTING AND EROSION OF THE ROADSIDE DUE TO ON-STREET PARKING, DRIVEWAY AND BUILDING LAYOUTS MUST BE CONCRETE MONUMENT FOUND SITE DEVELOPMENT PLAN SHEET NO. SP-3 CONFIGURED TO ALLOW FOR VEHICLES TO BE STORED IN THE DRIVEWAY BEYOND THE RIGHT-OF-WAY, WITHOUT INTERFERING WITH SIDEWALK ACCESS AND CLEARANCE. SOIL BORING EXISTING TREE SURVEY PLAN SHEET NO. LS-1 FIRE DEPARTMENT CONNECTION LANDSCAPE PLAN SHEET NO. LS-2 6. THE DEVELOPER SHALL BE REQUIRED TO FURNISH AND PLACE RIGHT-OF-WAY MARKERS TO PROVIDE A PERMANENT REFERENCE FOR RE-ESTABLISHING THE RIGHT-OF-WAY AND PROPERTY CORNERS ON LOCAL AND HIGHER ORDER FRONTAGE ROADS. RIGHT-OF-WAY MAIL BOX MB LANDSCAPE DETAIL & NOTES PLAN SHEET NO. LS-3 MARKERS SHALL BE SET AND/OR PLACED ALONG THE FRONTAGE ROAD RIGHT-OF-WAY AT PROPERTY CORNERS AND AT EACH CHANGE IN SANITARY CLEANOUT CO RIGHT-OF-WAY ALIGNMENT IN ACCORDANCE WITH SECTION 3.2.4.2 OF THE DEVELOPMENT COORDINATION MANUAL. PR. SITE LIGHT NUMBER OF PARKING STALLS IN ROW 8 HANDICAP MARKER DATE: 5 OCTOBER 2016 SIGN ROAD TRAFFIC DATA: "SITE" FUNCTIONAL CLASSIFICIATION - K157 WALKER ROAD - MAJOR COLLECTOR POSTED SPEED LIMIT - 35 MPH I, CHRISTOPHER WHALEY, HEREBY CERTIFY THAT DELAWARE STATE HOUSING AUTHORITY IS THE I, ROGER A. GROSS, P.E. HEREBY CERTIFY THAT I AM A REGISTERED PROFESSIONAL ENGINEER IN LEGAL OWNER OF THE PROPERTY SHOWN ON THIS PLAN, THAT THE PLAN WAS MADE AT ITS THE STATE OF DELAWARE, AND THAT THE INFORMATION SHOWN HEREON HAS BEEN PREPARED N AADT = 7350 TRIPS (FROM 2015 DELDOT TRAFFIC SUMMARY) 10 YEAR PROJECTED AADT = 1.20 X 7350 TRIPS = 8820 TRIPS DIRECTION, THAT IT ACKNOWLEDGES THE SAME TO BE ITS ACT, AND DESIRES THE PLAN TO BE UNDER MY SUPERVISION AND TO THE BEST OF MY KNOWLEDGE AND BELIEF REPRESENTS GOOD 10 YEAR PROJECTED AADT+SITE ADT (N/A) = 8820 (SITE TRIPS ARE EXISTING) RECORDED IN ACCORDANCE WITH ALL APPLICABLE LAWS AND REGULATIONS. ENGINEERING PRACTICES AS REQUIRED BY THE APPLICABLE LAWS OF THE STATE OF DELAWARE. TRAFFIC PATTERN GROUP - 3 (FROM 2015 DELDOT TRAFFIC SUMMARY) PEAK HOUR = 16.08% X 298 = 48 TRIPS SITE TRAFFIC DATA: SOURCE: ITE TRIP GENERATION MANUAL 9TH EDITION 100 LOW-RISE APARTMENT UNITS (221) ONE ENTRANCE - FULL MOVEMENT (EXISTING) DESIGN VEHICLE: SU-30 CHRISTOPHER WHALEY DATE: ROGER A. GROSS, P.E. DATE: 35516 CROSSING AVENUE, UNIT 1 WALKER ROAD SITE ADT (100 LOW-RISE APARTMENT UNITS) = 660 TOTAL TRIPS DIRECTIONAL DISTRIBUTION: DELAWARE STATE HOUSING AUTHORITY 18 THE GREEN MERESTONE CONSULTANTS, INC. 5215 W. WOODMILL DRIVE FIVE POINTS CROSSING KENT COUNTY ROAD #157 53% TO AND FROM THE NORTHEAST = 350 ADT (24 AM PK) [31 PM PK] 33516 CROSSING AVENUE, UNIT 1 WILMINGTON, DE 19808 PHONE: DOVER, DE 19901 LEWES, DE 19958 TRAFFIC GENEREATION DIAGRAM 47% TO AND FROM THE SOUTHWEST = 310 ADT (22 AM PK) [27 PM PK] LEWES, DE 19958 302-992-7900 FAX: 302-992-7911 ADT (A.M. PEAK HOUR) [P.M. PEAK HOUR] 5.31% TRUCKS & BUSES X 659 = 35 TRIPS 302-739-4263 (302) 226-5880 PHONE: 302-226-5880 Ref: 9th edition of ite TRIP GENERATION C MERESTONE CONSULTANTS, INC. 2016 PLAN #: 22101R - 327984

CO OR DELA D W (NA INAT ARE 201 E SY STA 1, E ST T PO EM E CH NA 201 D '8 0) 3 DETAIL: NRCS WEB SOIL SURVEY NO SCALE PROPERTY LINE BUILDING SETBACK LINE RIGHT-OF-WAY LINE EASEMENT LINE FOR PROPERTY KNOWN AS: CENTERLINE TREELINE OtA WETLAND DELINEATION ALSO KNOWN AS: ANSI TYPE "A" UNITS PROPOSED PAVEMENT PREPARED FOR: PROPOSED STORMWATER MANAGEMENT AREA ARCHITECTURAL ALLIANCE, LLC EXISTING PROPOSED SITUATE IN: SANITARY SEWER SS S MH W.V. CITY OF DOVER * KENT COUNTY Kent County, Delaware (DE001) WATER LINE W STORM SEWER C.B. STATE OF DELAWARE FzB Map Unit Symbol Map Unit Name Percent of AOI ELECTRIC E U.P. FzB Fallsington-Urban land 87.3% CONTOUR 8 SCALE: 1" = 30' 30 0 30 90 complex, 0 to 5 percent HYDRANT Y slopes SPOT ELEVATIONS X (18.50) OtA Othello silt loam, 0 to 2 percent 12.7% CULVERT (w/F.E.S.) slopes WATER LINE W Scale 1" = 30 ft GAS LINE GAS Totals for Area of Interest 100.0% SWALE CENTERLINE IRON PIPE FOUND CONCRETE MONUMENT FOUND SOIL BORING FIRE DEPARTMENT CONNECTION Call Before You Dig! MAIL BOX MB Delaware Law Requires SANITARY CLEANOUT CO PR. SITE LIGHT 3 Working Days Notice for NUMBER OF PARKING STALLS IN ROW 8 5215 WEST WOODMILL DRIVE 33516 CROSSING AVENUE, UNIT 1 Construction Phase and 10 Working WILMINGTON, DE 19808 FIVE POINTS SQUARE HANDICAP MARKER LEWES, DE 19958 Days in Design Stage - Stop Call SIGN PH: 302-992-7900 PH: 302-226-5880 FAX: 302-992-7911 FAX: 302-992-7911 1-800-257-7777 APPROVED: PROFESSIONAL ENGINEER DATE DRAWN BY: R.A.G. DATE: 10/05/2016 SHEET#: SP-2 MERESTONE CONSULTANTS, INC. © 2016 PLAN #: 22101R-327984

CO OR DELA D W (NA INAT ARE 201 E SY STA 1, E ST T PO EM E CH NA 201 D '8 0) 3 PROPERTY LINE BUILDING SETBACK LINE RIGHT-OF-WAY LINE EASEMENT LINE FOR PROPERTY KNOWN AS: CENTERLINE TREELINE WETLAND DELINEATION ALSO KNOWN AS: ANSI TYPE "A" UNITS PROPOSED PAVEMENT PREPARED FOR: PROPOSED STORMWATER MANAGEMENT AREA ARCHITECTURAL ALLIANCE, LLC EXISTING PROPOSED SITUATE IN: SS MH SANITARY SEWER S WATER LINE W W.V. CITY OF DOVER * KENT COUNTY C.B. STORM SEWER STATE OF DELAWARE ELECTRIC E U.P. CONTOUR 8 HYDRANT Y SCALE: 1" = 30' 30 0 30 90 SPOT ELEVATIONS X (18.50) CULVERT (w/F.E.S.) WATER LINE W Scale 1" = 30 ft GAS LINE GAS SWALE CENTERLINE IRON PIPE FOUND CONCRETE MONUMENT FOUND SOIL BORING FIRE DEPARTMENT CONNECTION MAIL BOX MB Call Before You Dig! SANITARY CLEANOUT CO Delaware Law Requires (SCALE: 1"=50') PR. SITE LIGHT 3 Working Days Notice for NUMBER OF PARKING STALLS IN ROW 8 5215 WEST WOODMILL DRIVE 33516 CROSSING AVENUE, UNIT 1 HANDICAP MARKER Construction Phase and 10 Working WILMINGTON, DE 19808 FIVE POINTS SQUARE Days in Design Stage - Stop Call LEWES, DE 19958 SIGN PH: 302-992-7900 PH: 302-226-5880 1-800-257-7777 FAX: 302-992-7911 FAX: 302-992-7911 APPROVED: PROFESSIONAL ENGINEER DATE DRAWN BY: R.A.G. DATE: 10/05/2016 SHEET#: SP-3 MERESTONE CONSULTANTS, INC. © 2016 PLAN #: 22101R-327984

HOUSING MANAGEMENT OFFICE 26 THE GREEN (302) 739 - 7423 FAX PHONE (302) 739-7416 DOVER, DELAWARE 19901 (302) 739 - 4264 TDD TOLL FREE: (888) 363-8808 November 9, 2016 City of Dover P.O. Box 475 Dover, De 19903 RE: Redevelopment of Liberty Court Apartments (S-16-22) Delaware State Housing Authority/Liberty Comi Preservation Corporation is requesting a waiver in regards to the emergency rear access requirement under the current City of Dover Code (Article 5 - Supplementary Regulations, Section 17). These building are non-confmming structures; new building construction/materials, sprinkler systems and a new primary fire lane are being proposed to provide additional fire protection above and beyond the current condition. We would greatly appreciate your cooperation in regards to this waiver request. HALEY Director of Hous · g Management/DSHA Secretary, Libe1iy Court Preservation Corporation

C F S-16-22 I I T R CITY OF DOVER Y E DEVELOPMENT ADVISORY COMMITTEE O M F A APPLICATION REVIEW COMMENTARY R D.A.C. MEETING DATE: 11/09/16 D S O H V A E L R APPLICATION: Redevelopment of Liberty Court Apartments FILE #: S-16-22 REVIEWING AGENCY: City of Dover, Office of the Fire Marshal CONTACT PERSON: Jason Osika, Fire Marshal PHONE #: (302) 736-4457 THE SUBJECT PROPOSAL HAS BEEN REVIEWED FOR CODE COMPLIANCE, PLAN CONFORMITY, AND COMPLETENESS IN ACCORDANCE WITH THIS AGENCY’S AUTHORITY AND AREA OF EXPERTISE. THE FOLLOWING ITEMS HAVE BEEN IDENTIFIED AS ELEMENTS WHICH NEED TO BE ADDRESS BY THE APPLICANT: CITY AND STATE CODE REQUIREMENTS: 1. Proposed building is residential. Primary fire lanes are required to be 24 feet wide and cover the side of the building that has the primary entrance and exit. Fire lanes can be no closer than 10 feet to the building and no farther than 50 feet from the building. Fire lanes shall cover 35% of the proposed building. 2. Emergency access to rear building areas compliant with City of Dover Code (Article 5- Supplementary Regulations, Section 17); All two to three story apartment structures require an 18ft Secondary Fire Lane at the rear. 3. The closest edge of fire lanes shall not be located further than 50ft from the exterior wall if one or two stories in height 4. Building Access shall be no further than 50 feet from a primary entrance. Where buildings are provided with an automatic sprinkler system installed in accordance with NFPA 13, access shall be no further than 100 feet from the primary entrance. 5. Fire Lanes shall have an unobstructed vertical clearance of not less than 13ft 6in. 6. All Fire Lanes shall be marked in accordance with the adopted Delaware State Fire Prevention Regulations. All fire lane markings shall be in the color of “yellow”. 7. Perimeter access will be 75% and clearly shown on the plans. Perimeter Access minimum width shall be 15ft measured from the face of the building at grade with a maximum slope of 10%. Plantings and utility services shall be permitted within the perimeter access and shall interfere with emergency services fire ground operations. See additional requirements #3.

8. Please see City of Dover Ordinance 98-10 in reference to Speed Reduction Devices. 9. Address numbers of at least 12 inches in height must be placed on the street side of the building visible from the street. Label all buildings. 10. Any natural or LP gas bottles, meters, values, regulators, etc., must have impact protection per City of Dover Code of Ordinances. 11. Full building and fire plan review is required. 12. Building cannot be occupied or construction or renovations started until completion of building and fire plan review. 13. All required means of egress shall have an exit discharge consisting of a non slip surface, and leading to and terminating at a public way. 14. Sprinkler system required. System is to be monitored by an approved Fire Alarm System. 15. Fire Department Connection is to be located within 50 feet of main entrance. Access to the Fire Department Connection must be clear unobstructed access as defined by the AHJ. 16. Fire Department Connection to be located within 300 feet of fire hydrant, measured as hose would come off the fire equipment. 17. Fire Alarm System required per occupancy code requirements. 18. Knox Box required at all buildings. 19. Gates are to be operational with Fire Department Opti-Con Systems approved by Delaware Department of Transportation. All gates are required to have one manual and one automated means for opening. To be considered accessible for fire department apparatus the actual clear openings shall be not less than 14ft, the paved surface through the gate shall be not less than 12ft and the gate shall be setback from the perpendicular street by at least 50ft. 20. Project to be completed per approved Site Plan. 21. Multiple Access Roads shall be provided when a fire department access road (fire lane) is determined by the Fire Marshal to be impaired by vehicle congestion, condition of terrain, climatic conditions, or other factors that could limit access such as placement of fire hose from fire equipment. ADDITIONAL / SPECIFIC REQUIREMENTS TO OBTAIN APPROVAL: *Note, a meeting regarding the project was already held and several conversations through e-mail and telephone have also taken place.

1. We will need to discuss entry into the access road (Fire Lane) from Walker Road. If this is going to remain as it currently is (chain), it will need a Knox Box or a Knox Lock. If it changes to a gate type system, we will need to discuss additional requirements. 2. Fire Lanes need to cover 35% of the proposed buildings. Please show the percentage of Fire Lanes for each building on the site plan. The current Fire Lane needs to properly connect with new Fire Lane. Access to the Fire Lane is needed in two dedicated areas as defined by the Fire Marshal (if these areas are chained/gated, the same access requirements will need to be met as the existing Fire Lane). This is to access the two fire hydrants which are located on the property. 3. Buildings under 10,000 ft2 require 35% perimeter access if the building is sprinklered. Buildings over 10,000 ft2 require 75% perimeter access. Please show the percentage of perimeter access for each building on the site plan (if it exceeds the required percentage, please show the total percentage, not the minimum required). 4. If the site plan changes in any way due to other agencies, the Fire Lane coverage will need to be discussed with this office. APPLICABLE CODES LISTED BELOW (NOT LIMITED TO): 2015 NFPA 1 Fire Code (NFPA; National Fire Protection Association) 2015NFPA 101 Life Safety Code (NFPA; National Fire Protection Association) 2013 NFPA 72 National Fire Alarm and Signaling Code (NFPA; National Fire Protection Association) 2013 NFPA 13 Installation of Sprinkler Systems (NFPA; National Fire Protection Association) 2009 IBC (International Building Code) Latest editions of all other NFPA Codes as defined by the Delaware State Fire Prevention Regulations 2015 Delaware State Fire Prevention Regulations City of Dover Code of Ordinances *If you have any questions or need to discuss any of the above comments, please call the above contact person listed.

2016 Gun Log Thru November 4, 2016 DATE OFFICER NAME COMPLAINT # ADDRESS CONFISCATED FROM GRID TYPE OF GUN DISPOSITION 01/21/2016 Schmid 50-16-2294 Greenhill Ave @ Whiteoak Rd 210 9mm Mauser Guilty 01/21/2016 Schmid 50-16-2294 Greenhill Ave @ Whiteoak Rd 210 .22 Caliber Rohm revolver Guilty 10/07/2016 MAULL 50-16-33816 100 LAKE DR 210 XD 40 Cal Not Guilty 04/30/2016 Boesenberg 50-16-13764 US 13 N/O LAKEVIEW DR 210 .38 SPECIAL STANDARD Pending 09/15/2016 Willson 50-16-31120 1700 N Dupont Hwy H201 220 Ruger 9mm Handgun Pending 09/15/2016 Willson 50-16-31120 1700 N Dupont Hwy H201 220 Taurus Judge .45 (Stolen) Pending 04/17/2016 Garey 50-16-12060 154H Willis Rd Dover, DE 230 Raven Arms MP-25 .25 cal semi-auto handgun Pending 03/24/2016 Peer 50-16-9118 206 Bay Tree Road (Parking Lot) 240 AMT Kurz 380/9mm semi-auto handgun Guilty 03/03/2016 Boesenberg 50-16-6882 US 13 at Whiteoak Rd 240 Glock 43 9mm Handgun Guilty 06/22/2016 Garey 50-16-18611 1 1/2 Kentucky Ave Wilmington, DE 240 High Standard-Double Nine .22 cal revolver Pending 10/21/2016 Bumgarner 50-16-35615 500 Persimmon Tree, Apt 431 (ATF) 240 .357 Ruger Revolver Pending 09/27/2016 Martinek 50-16-32679 Leipsic Rd @ N. Dupont 250 SCCY 9mm handgun Pending 09/27/2016 Martinek 50-16-32679 Leipsic Rd @ N. Dupont 250 Kel Tec 9mm handgun Pending 09/27/2016 Martinek 50-16-32679 Leipsic Rd @ N. Dupont 250 Kel Tec 9mm handgun Pending 01/21/2016 Barrett 50-16-2286 US 13 at Rustic Lane 250 Glock 9mm Handgun Probation Before Judgement 05/24/2016 PIERCE 50-16-15542 LEIPSIC RD 254 Glock 27 handgun Nolle Pros 02/11/2016 Johnson 50-16-4584 100 Teak Court 260 S&W 9mm Handgun Nolle Pros 03/30/2016 Bumgarner 50-16-10093 ATF- 517 River Rd 410 .380 cal Cobra Handgun Pending 04/21/2016 Bumgarner 50-16-10093 ATF- 910 Whatcoat Dr 410 9mm Taurus Handgun Pending 08/16/2016 Johnson 50-16-27527 River Rd/ New Castle Ave 410 Taurus .40 cal Pending 10/25/2016 Barrett 50-16-35979 IRO 469 New Castle Ave 410 9mm Ruger semiauto Pending 05/18/2016 Bumgarner 50-16-15806 ATF- 324 Martin St 420 12 ga Mossberg shotgun Nolle Pros 05/18/2016 Bumgarner 50-16-15806 ATF- 324 Martin St 420 Remington 30-06 rifle Nolle Pros 07/02/2016 Rankin 50-16-22182 133 Holmes Street 430 Raven Arms Co. .25 cal semi-auto Probation Before Judgement 07/02/2016 Rankin 50-16-22182 133 Holmes Street 430 Heritage .22 cal revolver Probation Before Judgement 01/28/2016 Bumgarner 50-16-3632 ATF Task Force- 4044 S Dupont Hwy 460 Taurus Revolver .22 cal Federal Charge - Guilty 01/28/2016 Bumgarner 50-16-3632 ATF Task Force- 4044 S Dupont Hwy 460 Browning Hi-Power 9mm Federal Charge - Guilty 01/28/2016 Bumgarner 50-16-3632 ATF Task Force- 4044 S Dupont Hwy 460 WWI .223 rifle Federal Charge - Guilty 01/28/2016 Bumgarner 50-16-3632 ATF Task Force- 4044 S Dupont Hwy 460 WW1 .223 rifle Federal Charge - Guilty 01/28/2016 Bumgarner 50-16-3632 ATF Task Force- 4044 S Dupont Hwy 460 Mossberg 500 Chainsaw, 12ga Federal Charge - Guilty 01/28/2016 Bumgarner 50-16-3632 ATF Task Force- 4044 S Dupont Hwy 460 H&K .223 rifle Federal Charge - Guilty 06/01/2016 Schmid 50-16-17935 49 Howell St Dover, DE Lot 7 620 SCCY cpx-1 9 MM Pending 03/10/2016 Boesenberg 50-16-7727 N. New St at W. Division St 640 DPMS AR-15 Assault Rifle Guilty 03/28/2016 Johnson 50-16-9649 Reese st at Lincoln St 640 Ruger 9mm Handgun Guilty 05/17/2016 Johnson 50-16-15837 S Kirkwood St 640 9 mm SCCY Industries Guilty 04/20/2016 BARROWS 50-16-12305 37 S. NEW ST 640 9mm handgun Guilty 09/13/2016 Boesenberg 50-16-30931 S Kirkwood St 640 Glock mod. 22 .40 cal Handgun No Charges 10/19/2016 Barrett 50-16-35352 104 S. New St 640 Ruger .380 LCP handgun No Charges 10/19/2016 Barrett 50-16-35352 104 S. New St 640 S&W .38 special revolver No Charges 01/29/2016 Willson 50-16-3044 836 Lincoln Street 640 Taurus .357 Magnum Nolle Pros 01/29/2016 Willson 50-16-3044 836 Lincoln Street 640 Smith & Wesson .38 Special Nolle Pros 06/22/2016 Cunningham 50-16-20794 W Reed St 640 Glock 17 9mm Semi-Auto Nolle Pros 05/26/2016 Rankin 50-16-17066 Cherry St. 640 9mm S&W handgun Pending 06/24/2016 Richey 50-16-21148 505 Forest St 640 Ruger 9mm Handgun Pending 07/28/2016 Boesenberg 50-16-25418 S Kirkwood St 640 .22 cal Ruger Handgun Pending 07/28/2016 Boesenberg 50-16-25418 S Kirkwood St 640 .380 Bryco Arms Handgun Pending 08/18/2016 Rankin 50-16-27873 53 S. New St. 640 HS Model II . 22 cal Pending

08/17/2016 Martinek 50-16-27737 Queen and Loockerman Street 640 Mossberg 12 gauge Pending 11/04/2016 Cunningham 50-16-37139 102 S. New St 640 Mossberg 12 ga shotgun Pending 11/12/2016 BERNS 50-16-38124 760 SLAUGHTER ST 640 380 Cal Pending 04/20/2016 MITCHELL 50-16-12305 866 PAUL ST 640 Ruger SRC 9 mm handgun Suspect Unknown 11/08/2016 MAST 50-16-37505 921 SIMON CIR 640 38 Special Suspect Unknown 05/31/2016 Cunningham 50-16-17703 1300 S Farmview Dr E21 680 Taurus .380 Semi-Auto Guilty 05/31/2016 Cunningham 50-16-17703 1300 S Farmview Dr E21 680 Rossi .38 Special revolver Guilty 07/14/2016 Bumgarner 50-16-22545 ATF- 1300 S Farmview Dr 680 Taurus 9mm handgun Guilty 01/12/2016 J Wood 50-16-1229 211 Delawarve Ave (CMS) 810 Smith & Weson M&P cal. 380 Guilty 03/16/2016 LAWSON 50-16-8331 WHATCOAT DR. 820 Beretta 9 mm handgun Guilty 04/12/2016 Barrett 50-16-11382 Fulton St @ N. New St 820 RG Industries .22lr revolver Juvenile Guilty 10/06/2016 Streadwick 50-16-33683 225 N. New St, Dover DE 820 Springfield XD 45 No Charges 02/08/2016 Toto 50-16-4243 yard of 200 North Kirkwood St 820 Iver Johnson .32 cal revolver Nolle Pros 02/20/2016 N Warren 50-16-5471 316 Fulton ST 820 Ruger SR9 9mm semi-auto handgun Nolle Pros 08/11/2016 Toto 50-16-26856 Ridgley Street, Dover De 820 22 H and R revolver no serial number Pending 04/14/2016 Willson 50-16-11526 60 Ridgley St 820 Smith & Wesson 9mm Pending 04/14/2016 Willson 50-16-11526 60 Ridgley St 820 Ravens arms .25 caliber Pending 08/26/2016 Barrett 50-16-28813 38 N. Governors Ave Alley 820 ROHM RG10 .22 caliber short Pending 02/02/2016 Boesenberg 50-16-3542 RT 8 at Saulsbury rd 850 .40 cal Springfield XD Handgun Pending 08/03/2016 Willson 50-16-26071 129 Madison Court 850 .380 Bersa handgun Pending 08/03/2016 Willson 50-16-26071 129 Madison Court 850 Mossberg 500 12 gauge Pending 08/03/2016 Willson 50-16-26071 129 Madison Court 850 Walther Arms MP5 .22 cal Pending 01/29/2016 Turner 50-16-3043 50 Village Drive 860 Bryco .25 caliber semi-auto Nolle Pros 11/02/2016 Johnson 50-16-37013 325 W Broadstairs Place B302 860 Ruger .22 caliber rifle Pending 11/02/2016 Johnson 50-16-37013 325 W Broadstairs Place B302 860 Walther .380 sem-auto Pending 06/12/2016 PIERCE 50-16-19248 1019 WALKER RD 860 .22 Cal Pending 10/17/2016 Peer 50-16-35055 908 Woodcrest Drive Apt. 2-4, Dover, DE 880 Browning Invector BPS Special Steel 12 GA No Charges 10/17/2016 Peer 50-16-35055 908 Woodcrest Drive Apt. 2-4, Dover, DE 880 Ruger .22 LR Rifle No Charges 10/17/2016 Peer 50-16-35055 908 Woodcrest Drive Apt. 2-4, Dover, DE 880 Marlin Firearms Co. Mo. 81 .22 LR Rifle No Charges 10/17/2016 Peer 50-16-35055 908 Woodcrest Drive Apt. 2-4, Dover, DE 880 RG 23 .22 LR Handgun No Charges 10/17/2016 Peer 50-16-35055 908 Woodcrest Drive Apt. 2-4, Dover, DE 880 Reck P8 KAL 6.35 MM Handgun No Charges 02/15/2016 Schmid 50-16-4908 44 Courtside Dr Apt B32 880 H&R model 929 .22 caliber Pending 03/22/2016 Boesenberg 50-16-9046 1700 East Lebanon RD 990 H&K USP .40 cal Handgun Federal Charge - Guilty 04/29/2016 Johnson 50-16-13644 231 Acorn Lane 990 .22 caliber revolver PIC Guilty 03/29/2016 Bumgarner 50-16-14054 ATF- Dagsboro DE 990 .45 cal Colt Handgun Nolle Pros 03/29/2016 Bumgarner 50-16-14054 ATF- Dagsboro DE 990 .22 cal HR revolver Nolle Pros 04/05/2016 Bumgarner 50-16-14054 ATF- Millsboro DE 990 .32 cal Colt revolver Nolle Pros 08/11/2016 Bumgarner 50-16-26959 8595 Virginia Pine Lincoln (ATF) 990 Daewoo 9mm handgun Pending 08/11/2016 Bumgarner 50-16-26959 8595 Virginia Pine Lincoln (ATF) 990 Taurus .380 handgun Pending 08/11/2016 Bumgarner 50-16-26959 8595 Virginia Pine Lincoln (ATF) 990 Ruger .22 cal revolver Pending 08/11/2016 Bumgarner 50-16-26959 8595 Virginia Pine Lincoln (ATF) 990 Glock 17 9mm handgun Pending 08/11/2016 Bumgarner 50-16-26959 8595 Virginia Pine Lincoln (ATF) 990 Rohm .22 cal revolver Pending 08/11/2016 Bumgarner 50-16-26959 8595 Virginia Pine Lincoln (ATF) 990 Just Right 9mm Carbine Pending 08/11/2016 Bumgarner 50-16-26959 8595 Virginia Pine Lincoln (ATF) 990 SCCY 9MM handgun Pending 08/11/2016 Bumgarner 50-16-26959 8595 Virginia Pine Lincoln (ATF) 990 Mossberg 12ga shotgun Pending 08/11/2016 Bumgarner 50-16-26959 8595 Virginia Pine Lincoln (ATF) 990 Winchester 12ga shotgun Pending 08/11/2016 Bumgarner 50-16-26959 8595 Virginia Pine Lincoln (ATF) 990 Romarm AK-47 Pending 08/11/2016 Bumgarner 50-16-26959 8595 Virginia Pine Lincoln (ATF) 990 Harrington and Ricahrdson 12 ga Pending 08/11/2016 Bumgarner 50-16-26959 8595 Virginia Pine Lincoln (ATF) 990 Jennings .22 cal handgun Pending

Type of Guns Recovered 90 January 1, 2016 – November 4, 2016 80 78 70 60 50 40 30 20 9 9 10 0 Handguns Shotgun Rifle

30 Grid Locations 25 24 24 20 17 17 15 14 10 5 0 200 400 600 800 *990 990- Is Outside City Limits, guns were recovered during a joint task force with the DEA

50 Dispositions 46 45 40 35 30 25 22 20 15 13 10 9 5 3 2 1 0 Guilty Not Guilty Nolle Pros Probation Before Pending No Charges Suspect Judgement Unknown

City of Dover s wi Le Dr Delaware Ln y nn Pe Wilmington S ta te College Hw y 1 N Du po nt Hw y g in rk Pa ee oy pl Em s Del wn Tech ough Rd Dr Ch Dover Mall 270 Do ve r D o Scarbor as Ce da e r dC KW Bl d v R Ln 250 fo r arr us Craw ol lA tic ve Stonebrook Ln Ln e e East Ru Tr st on ic St m at s im W e P er Hw Dr k y r ee 1 i llc N Stonebrook Rd M Du West e ys po nt nn Hw De Wild W Millcreek y Meadows 254 Mc Ke e Rd 840 220 Dover Pl a za Dr Downs McKee Ap Road ril Maple Dr Business De Glen Park Delaware la Farthing State w ar e Woods St Seskinore University at e Un iv e North d ity eR rs Dover l le g Co c d Shopping ip si Oak Ol Center Le Shadows Rd ge lle Meadows Co Garrison at Tract Dover Somerset Park Rd a St ilm ay W ta as m on Ri J Fox College d on R St Meadows Road Business University N State St Park e C Co nw Courtyard N St at ol ll St nt e po Hi a watha Ln le Hw Rd 870 ge Pa r k D r Co lle ge R d Du Hw y Towne Point Apartments y 1 hi W oa te k Silver Lake Townhouses 240 Baltray Emerald Pointe Westminster Silve r Towne 260 Retreat 830 Lake B d Chatham Court Apartments Point Bay Tree O ld W hit eO ak Rd Ct Woodcrest M cK Towne ee East Point Rd k Lake Apartments Dr ynn D r Gardensie ev k ick L Fox Rd ak Manchester Patr Hall White te O Oakmont Blv Lake hi Square Oak W park The d Club White Hamlet no Oak Farms rn Aco Oakridge rs Apartments Farms Patriot ov er Ln Village Apartments Mapleton 860 NG nb Carol Street Square 230 n Independence Village Nixo d err eR Turnberry illi rov y e r Rd Development W tnu tG Capital Walk d Ch es sR Ln Acorn Healthcare Lexington Ken Farms gP Lon ton Rd Liberty Glen Court at Dr 810 Girl S oin t Rd Lewis t Ln tco Wha Ave cou Fox Rd ors 210 M ill ver n Dr N Go Edgehill Westfield N D up 880 Fox Hall West Four Seasons 820 o nt H wy iv i s io nS t N L ittle Creek Rd Bicentennial ED Village Sauls Clar a Ext Rd III bury s Hwy King 850 Edgehill Mallard Pond lR d Shopping Center an S t 430 hil Park ee n erm Gr ck John H Brandywine Dr oo Clearview Heatherfield EL un Apartments nB Meadow East n St R Cranberry ivisio wn WD 610 Run ro d Forrest Ave Forrest Ave 410 Dover Crossing St Minor Gateway Court St an S t West ckerm W Loo Shopping S Little Creek Rd Center S Sauls Lincoln 640 Ma r Tudor Industrial 680 Park tin d Schoolview bury R Simon St rR d Park ill lle n Circle wg Mi tL Woodmill ter S t Capital Co ur Maggies W a Co y E Wa Green Apartments St vy vd Enterprise Bl Le n Business He ue St Bl D Dr ning Village Park t t MC th S er S Ban of W Nor W Wat Westover C om merce Way d Blv Blue est S r is e on d Mi Be Hen SW n sep ffli ls Corporate Sau St H or th Rd t Sou Center Pl bury Bay Enterpris e Court Rd Cannon Rd Plaza S Governors Ave Mill Kent d General yR Ba 440 Hospital ect S State St or og Bulld Co Rd nn State e ill bl tt v Pu Stover Ru le Hwy n Dr z S Ha ic 1 o n afe he General nc Eden vd 420 P u W t S Foods Bl i ck 620 The Hill Farm 650 S Du pon t Hw y Beeches ty r Ln Ci ty Department n fer t io Paradee f of rt a La po Ave s Center S Bradford St Transportation Tr an Morris tric Nottingham Elec Sherwood 2 ka Estate Sig nS ho p Rd Tr a ns it Rd 450 Meadows Bay 690 Schutte Park Wyoming Ave Riverside Mobile Home Court Plaza Stover 440 f fer ty Ln Hwy La Roosevelt Ave Park Rd d 1 e yR it 450 Starlifter Av Jefferson Ter Sherwood Carrolls ran s Ba Stat Corner T e Woodbrook Ga lax Shopping Capital 630 yD e r Center River Park St arlifter Chase Ga Capital Kings l ax Av Apartments Cliff yD r Park Mobile ne Rd a Bay elin r e Lynnhaven ecto nL an Home nL onn sto B as sto Rd C i ng y g a inPark Ho r un Li v s Wiv sep nR 480 Bu o nd R Hor heo v an L e R d se p rto c ir E ay ond n Pun S d R d Hidden t sW Ne lC an Bar Creek w Ev Rd Sir e es Rd st l Ca an Crossgates J De at sD r Rd Jan es Clearfield Apartments 660 y Dover Ja ne sC ir SD upo Wedgewood Mayfair nt H w n ic k L n AFB Dover Air Pine Post Blvd Old Rud 460 Force Base Garton Ln Grove er op Apartments Co SUtS Web tat bs Es aHt Ln eR d ew yH1 w3y 1 1 Kent Acres Dover 460 Air Force 670 Rodney Base Village de Dr Bay si US Hw 470 y1 13 1 inch = 2,000 feet

ACTION FORM PROCEEDING: Safety Advisory & Transportation Committee DEPARTMENT OF ORIGIN: City Manager's Office DATE SUBMITTED: November 18, 2016 PREPARED BY: Scott D. Koenig, P.E., City Manager SUBJECT: Request for 4-Way Stop Sign- Wyoming Avenue and Westview Terrace REFERENCE: N/A RELATED PROJECT: N/A REVIEWED BY: Scott D. Koenig, P.E., City Manager EXHIBITS: Exhibit #1- Speed survey information Exhibit #2- Original CAF from 9/21/2016 EXPENDITURE REQUIRED: $300.00 (EST.) AMOUNT BUDGETED: $16,000.00 (All Signs) FUNDING SOURCE (Dept./Page in CIP & Budget): 110-1800-544 (Streets Division Operating Budget) TIME TIMETABLE: Install within thirty (30) days of final approval RECOMMENDED ACTION: Staff still recommends the installation ofthe 4-way stop condition at the intersection ofWyoming Avenue and Westview Terrace; however, final action should consider any additional public testimony received at the committee meeting. BACKGROUND AND ANALYSIS The Dover Police Department conducted an additional speed survey from October 17, 2016- October 24, 2016 as was requested. This speed survey was completed after the speed monitoring signs were repaired and placed back into operational status. The October survey recorded 20,566 vehicles. 2,124 vehicles were over the 15 mph stopping threshold. The average speed during this survey was 29.3 mph. The original survey had an average speed of31.2 mph. Staff indicated the speed monitoring signs reduced the average speed by 1.9 mph.

!::xiLtl:Jif .1 c; ~CLje5 MetroCount Traffic Executive Speed Statistics SpeedStat-53 -- English (ENU) Datasets: Site: [KM44MXDO] Wyoming Ave Attribute: Direction: 8 - East bound A>B, West bound B>A. Lane: 0 Survey Duration: 16:56 Monday, October 17, 2016 => 16:12 Monday, October 24, 2016, Zone: File: KM44MXDO 0 2016-10-24 1613.ECO (Plus) Identifier: KM44MXDO MC56-L5 [MC55] (c)Microcom 190ct04 Algorithm: Factory default axle (v4.06) Data type: Axle sensors - Paired (Class/Speed/Count) Profile: Filter time: 16:57 Monday, October 17, 2016 => 16:12 Monday, October 24, 2016 (6.9694) Included classes: 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13 Speed range: 6-99 mph. Direction: North, East, South, West (bound), P = East Separation: Headway > 0 sec, Span 0 - 328 .084 ft Name: Default Profile Scheme: Vehicle classification (Scheme F3) Units: Non metric (ft, mi, fUs, mph, lb, ton) In profile: Vehicles= 20566/20922 (98 .30%)

Speed Statistics Speed Stat-53 Site: KM44MXD0 .0.1EW Description: Wyoming Ave Filter time: 16:57 Monday, October 17, 2016 => 16:12 Monday, October 24, 2016 Vehicles = 20566 Posted speed limit= 25 mph , Exceeding= 17164 (83.46% ), Me an Exceeding = 30.97 mph Maximum = 93.8 mph , Minimum= 6 .3 mph , Mean= 29.3 mph Speed Bins (Partial days) s;eeed I Bin Below Above Energy vMult n * vMult 0 - 5 I 0 0 .0% 0 0 . 0% 20566 100 . 0 % 0 . 00 0.00 0 . 00 5 - 10 I 32 0.2 % 32 0 . 2% 20534 99 . 8 % 0 . 00 0.00 0 . 00 10 - 15 I 199 1.0% 231 1.1 % 20335 98.9 % 0 . 00 0.00 0.00 15 - 20 I 972 4.7 % 1 203 5.8 % 19363 94.2 % 0 . 00 0.00 0.00 20 - 25 I 2199 1 0 . 7 % 3402 16 . 5 % 17164 83 . 5 % 0 . 00 0.00 0.00 25 - 30 I 7873 38.3 % 11275 54 . 8 % 929 1 45.2 % 0.00 0 . 00 0 . 00 30 - 35 7167 34 . 8 % 1 8442 89 . 7 % 2124 1 0 . 3% 0.00 0.00 0 . 00 35 - 40 1 662 8.1 % 20 1 04 97 . 8 % 462 2 . 2% 0 . 00 0 . 00 0 . 00 40 - 45 318 1. 5 % 20422 99 . 3 % 144 0.7 % 0 . 00 0 . 00 0 . 00 45 - 50 83 0 . 4% 20505 99.7 % 61 0.3 % 0 . 00 0.00 0 . 00 50 - 55 26 0 . 1% 20531 99.8 % 35 0.2 % 0 . 00 0 . 00 0 . 00 55 - 60 21 0.1 % 20552 99.9 % 14 0.1 % 0.00 0 . 00 0 . 00 60 - 65 5 0 . 0% 20557 100 . 0 % 9 0.0 % 0 . 00 0 . 00 0 . 00 65 - 70 0 0.0 % 20557 100.0 % 9 0 . 0% 0.00 0 . 00 0 . 00 70 - 75 8 0.0 % 20565 100 . 0 % 1 0.0 % 0 . 00 0 . 00 0 . 00 75 - 80 0 0.0 % 20565 100 . 0 % 1 0 . 0% 0 . 00 0 . 00 0.00 80 - 85 0 0.0 % 20565 100 . 0 % 1 0 . 0% 0 . 00 0 . 00 0 . 00 85 - 90 0 0.0 % 20565 1 00.0 % 1 0.0 % 0.00 0 . 00 0 . 00 90 - 95 1 0 . 0% 20566 1 00 . 0 % 0 0 . 0% 0 . 00 0 . 00 0.00 95 - 100 0 0 . 0% 20566 1 00 . 0 % 0 0 . 0% 0.00 0.00 0 . 00

MetroCount Traffic Executive Speed Bin Chart SpeedBin-52 -- English (ENU) Datasets: Site: [KM44MXDO] Wyoming Ave Attribute: Direction: 8- East bound A>B, West bound B>A. Lane: 0 Survey Duration: 16:56 Monday, October 17, 2016 => 16:12 Monday, October 24, 2016, Zone: File: KM44MXDO 0 2016-10-241613.ECO (Plus) Identifier: KM44MXDO MC56-L5 [MC55] (c)Microcom 190ct04 Algorithm: Factory default axle (v4.06) Data type: Axle sensors - Paired (Class/Speed/Count) Profile: Filter time: 16:57 Monday, October 17, 2016 => 16:12 Monday, October 24, 2016 (6.9694) Speed Bins s12eed I Bin vMult n * vMult 0 - 5 I 5 10 I 32 0 . 2% 0 . 00 0 . 00 10 - 15 I 199 1. 0 % 0 . 00 0 . 00 15 - 20 I 972 4 . 7% 0.00 0 . 00 20 - 25 I 2199 10 . 7% 0.00 0 . 00 25 - 30 I 7873 38.3 % 0 . 00 0 . 00 30 - 35 I 7167 34 . 9% 0 . 00 0.00 35 - 40 I 1662 8 . 1% 0 . 00 0 . 00 40 - 45 I 318 1. 5 % 0.00 0.00 45 - 50 I 83 0 . 4% 0 . 00 0.00 50 - 55 I 26 0 . 1% 0 . 00 0 . 00 55 - 60 I 21 0 .1 % 0.00 0 . 00 60 - 65 I 5 0.0 % 0 . 00 0.00 65 - 70 I 0 0.0 % 0 . 00 0 . 00 70 - 75 I 8 0.0 % 0 . 00 0.00 75 - 80 I 0 0.0 % 0 . 00 0 . 00 80 - 85 I 85 - 90 I 90 - 95 I - I 95 - 100 I - I

MetroCount Traffic Executive Speed Statistics SpeedStat-38 -- English (ENU) Datasets: Site: [Wyoming Ave] MCSetup factory setup Attribute: Direction: 6- West bound A>B, East bound B>A. Lane: 0 Survey Duration: 7:50 Tuesday, August 16, 2016 => 11 :00 Friday, August 26, 2016, Zone: File: Wyoming Ave 0 2016-08-26 11 OO .ECO (Plus) Identifier: KM44MXDO MC56-L5 [MC55] (c)Microcom 190ct04 Algorithm: Factory default axle (v4.06) Data type: Axle sensors - Paired (Class/Speed/Count) Profile: Filter time: 7:51 Tuesday, August 16,2016 => 11:00 Friday, August 26, 2016 (10.1316) Included classes: 1, 2, 3, 4, 5,6, 7, 8, 9, 10, 11 , 12, 13 Speed range: 6-99 mph . Direction: North, East, South, West (bound), P = East Separation: Headway > 0 sec, Span 0 - 328.084 ft Name: Default Profile Scheme: Vehicle classification (Scheme F3) Units: Non metric (ft, mi, fUs, mph , lb, ton) In profile: Vehicles= 31463 I 31778 (99 .01 %)

Speed Statistics SpeedStat-38 Site: Wyoming Ave and Westview Terrace Description: MCSetup factory setup Filter time: 7:51 Tuesday, August 16, 2016 => 11:00 Friday, August 26, 2016 Scheme: Vehicle classification (Scheme F3) Filter: Cls(1 2 3 4 56 7 8 910111213) Dir(NESW) Sp(6,99) Headway(>O) Span(O - 328.084) Vehicles= 31463 Posted speed limit= 25 mph , Exceeding = 28908 (91.88%), Mea n Exceeding= 32.17 mph Maximum= 73.3 mph , Minimum= 6.3 mph , Mean= 31.2 mph Speed Bins (Partial days) s12eed Bin Below Abov e Ener!I:l vMult n * vMult 0 - 5 0 0.0 % 0 0 . 0% 31 463 100.0 % 0.00 0.00 0 . 00 5 - 10 43 0 . 1% 43 0 . 1% 31420 99.9 % 0.00 0.00 0 . 00 10 - 15 341 1.1 % 384 1. 2 % 31079 98.8 % 0 . 00 0 .0 0 0 . 00 1 5 - 20 575 1. 8 % 959 3 . 0% 30504 97.0 % 0 . 00 0.00 0.00 20 - 25 1596 5.1 % 255 5 8.1 % 28908 91 . 9% 0 . 00 0 . 00 0 . 00 25 - 30 9390 29 . 8 % 11945 38 . 0 % 19518 62 . 0 % 0.00 0.00 0.00 30 - 35 13443 42 .7 % 25388 80 . 7 % 6075 19.3 % 0.00 0.00 0.00 35 - 40 4776 15.2 % 30 164 95 . 9% 12 99 4 .1 % 0 . 00 0 . 00 0 . 00 40 - 45 1005 3 . 2% 31169 99 . 1% 294 0 . 9% 0 .00 0 . 00 0 . 00 4 5 - 50 209 0.7 % 31378 99 . 7 % 85 0.3 % 0 . 00 0 . 00 0 . 00 50 - 55 57 0 . 2% 31435 99 . 9% 28 0.1 % 0 . 00 0 . 00 0.00 55 - 60 16 0.1 % 31451 100 . 0 % 12 0 . 0% 0 . 00 0 . 00 0 . 00 60 - 65 7 0 . 0% 31458 100 . 0 % 5 0 . 0% 0.00 0.00 0 . 00 65 - 70 1 0.0 % 31459 100.0 % 4 0 . 0% 0.00 0 . 00 0 . 00 70 - 75 4 0.0 % 31463 100.0 % 0 0 . 0% 0.00 0 . 00 0.00 75 - 80 0 0.0 % 31 463 100.0 % 0 0 . 0% 0.00 0 . 00 0 . 00 80 - 85 0 0 . 0% 31463 10 0 . 0 % 0 0 . 0% 0 . 00 0 . 00 0 . 00 85 - 90 0 0.0 % 314 63 100 . 0% 0 0.0 % 0.00 0 . 00 0 . 00 90 - 95 0 0 . 0% 314 63 100 . 0% 0 0 . 0% 0.00 0 . 00 0 . 00 95 - 10 0 0 0.0 % 314 63 100.0 % 0 0.0 % 0 . 00 0 . 00 0 . 00

MetroCount Traffic Executive Speed Bin Chart SpeedBin-36 -- English (ENU) Datasets: Site: [Wyoming Ave] MCSetup factory setup Attribute: Direction: 6- West bound A>B, East bound B>A. Lane: 0 Survey Duration: 7:50 Tuesday, August 16, 2016 => 11 :00 Friday, August 26, 2016 , Zone: File: Wyoming Ave 0 2016-08-26 11 OO.ECO (Plus ) Identifier: KM44MXDO MC56-L5 [MC55] (c)Microcom 190ct04 Algorithm: Factory default axle (v4.06} Data type: Axle sensors - Paired (Class/Speed/Count) Speed Bins SJ2eed I Bin vMult I n * vMult 0 - 5 I - I 5 - 10 I 43 0.1 % 0 . 00 I 0 . 00 10 - 15 341 1.1 % 0 . 00 I 0.00 15 - 20 575 1. 8 % 0.00 I 0 . 00 20 - 25 1596 5 . 1% 0 . 00 I 0 . 00 25 - 30 9390 29 . 8 % 0 . 00 I 0 . 00 30 - 35 13443 42 . 7% 0 . 00 I 0 . 00 35 - 40 4776 15.2 % 0 . 00 I 0 . 00 40 - 45 1005 3 . 2% 0 . 00 I 0.00 45 - 50 209 0 . 7% 0 . 00 I 0 . 00 50 - 55 57 0 . 2% 0 .00 I 0 . 00 55 - 60 16 0 . 1% 0 . 00 I 0 . 00 60 - 65 7 0 . 0% 0 . 00 I 0 . 00 65 - 70 1 0.0 % 0.00 I 0 . 00 70 - 75 4 0 . 0% 0 . 00 I 0 . 00 75 - 80 0 0.0 % 0 . 00 I 0 . 00 80 - 85 - I 85 - 90 - I 90 - 95 - I 95 - 100 - I

ACTION FORM PROCEEDING: Safety Advisory & Transportation Committee DEPARTMENT OF ORIGIN: City Manager's Office DATE SUBMITTED: September 21,2016 PREPARED BY: Scott D. Koenig, P.E., City Manager SUBJECT: Request for 4~Way Stop Sign- Wyoming Avenue and Westview Terrace REFERENCE: N/A RELATED PROJECT: N/A REVIEWED BY: Scott D. Koenig, P.E., City Manager EXHIBITS: Exhibit #1- Petition for 4~Way Stop condition at Wyoming Avenue and Westview Terrace received on July 9, 2016; Exhibit #2- Speed Bin Chart EXPENDITURE REQUIRED: $300.00 (EST.) AMOUNT BUDGETED: $16,000.00 (All Signs) FUNDING SOURCE (Dept./Page in CIP & Budget): 11 0~ 1800~544 (Streets Division Operating Budget) TIME TIMETABLE: Install within thirty (30) days of final approval RECOMMENDED ACTION: Staff recommends the installation of the 4~way stop condition at the intersection of Wyoming Avenue and Westview Terrace; however, final action should consider any public testimony received at the committee meeting. BACKGROUND AND ANALYSIS Councilman William F. Hare forwarded a petition that he received regarding a request to install a 4-way stop condition at the intersection of Wyoming Avenue and Westview Terrace to staff. The engineering staff in the Department of Public Works determined that a 4-way stop is justified at this location based on the current Manual on Uniform Traffic Control Devices (MUTCD). In addition, there have been consistent speeding complaints on this section of road. Speed monitoring signs have been installed previously but the dangerous conditions have persisted. Staff has no objections to the request and had made preparations for the installation of the 4-way stop at the referenced intersection. After roadside message boards were placed to alert motorists to the upcoming stop installation, several complaints and/or concerns were voiced by area residents regarding the planned installation. This item has been placed on the committee agenda to received public comment and final direction on the request.

Richard & Sharon Cook 516 Wyoming Avenue Dover, De 19904-4353 Mr. William F. Hare Councilman 00 2 District; Dover, De 'Ji De~ 5 . The attached Petition with continuation sheet contains names of residents of Wyoming Avenue, and Westview Terrace who request stop signs to be installed at the east-west intersection of Wyoming Avenue and Westview Terrace. Signature support of the rationale to slo:w down traffic on Wyoming Avenue is clear. The potential public safety benefits to the residents of Wyoming Avenue in slowing traffic are self-evident. Also, installing east-west stop signs at that intersection will aid drivers' decisions when turning from Westview Terrace onto Wyoming Avenue either into the glare of morning sum, or into the glare of the evening sun, (based on time of day vision/line of sight). Further, installing stop signs on Wyoming Avenue at the Westview Terrace intersection is reasonable to reduce speeding on Wyoming Avenue since that intersection is about half way between New Burton Road and Governor's Avenue. Finally, this request makes sense since there are already electronic speed indicator signs at both ends of Wyoming Avenue; logically those signs aren't installed because traffic moves too slowly along Wyoming Avenue. Your assistance with this is greatly appreciated. sv~~ Dick Cook 516 Wyoming Avenue 1 Attached Petition (two pages)

Pditio11 The following residents of Wyoming Avenue and Westview Terrace, Dover, De request installation of stop signs on the east-west intersection of Wyoming Avenue and Westview Terrace. This request is based on public safety needs and concerns o.fthe residents. Address r _7/G, (Ly07/L 6 / d ) are.---r·UA-t__..- 2. :, , Jw·d ~ook ~/d ,/ .J;rr\~ 5 !(., : ltl:'t-r~~ 3. _ wa!itl.t:l!¥ sJ~ .J;itvr £;s- cJt~~, ~p~ s I :f"/ tUjlft//V? /f'v-c_ 4r;fJ'f,4tD/I/ jk!}CIC7 s\\~R~\U\ ·~':!~~~\ ' 7. -go.\~l,-,a::;lw ~~ t~L 8. -D~6b .' ~ Gr. ~~t c~d -~ ~

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MetroCount Traffic Executive Speed Bin Chart SpeedBin-36 -- English (ENU) Datasets: Site: [Wyoming Ave] MCSetup factory setup Attribute: Direction: 6 -West bound A>B, East bound B>A. Lane: 0 Survey Duration: 7:50 Tuesday, August 16, 2016 => 11 :00 Friday, August 26, 2016 , Zone: File: Wyoming Ave 0 2016-08-26 1100.ECO (Plus) Identifier: KM44MXDO MC56-L5 [MC55] (c)Microcom 190cto4 Algorithm: Factory default axle (v4.06) Data type: Axle sensors- Paired (Class/Speed/Count) Speed Bins SEeed Bin I vMult I n * vMult 0 - 5 I - I 5 - 10 43 0 . 1% I 0.00 I 0.00 10 - 15 34 1 1. 1 % I 0 . 00 I 0 . 00 15 - 20 575 1. 8% I 0 .00 I 0.00 20 - 25 1596 5 .1 % I 0 . 00 I 0 .00 25 - 30 9390 29 . 8% I 0.00 I 0.00 30 - 35 13443 42 7% I 0 0.00 I 0 . 00 35 - 40 4776 1 5 . 2% I 0 . 00 I 0.00 40 - 45 1005 3.2% I 0 . 00 I 0 . 00 45 - 50 209 0.7% I 0 . 00 I 0.00 50 - 55 57 0.2% I 0.00 I 0 . 00 55 - 60 16 0.1% I 0 . 00 I 0 . 00 60 - 65 7 0.0% I 0 . 00 I 0 . 00 65 - 70 1 0.0% I 0 . 00 I 0 . 00 70 - 75 4 0 . 0% I 0 . 00 I 0 . 00 75 - 80 0 0 . 0% I . 0 . 00 I 0.00 80 - 85 I - I 85 - 90 I - I 90 - 95 I - I 95 - 100 I - I

Speed Bin Chart SpeedBin.39 (Non metric) Site:'JIIyoming Ave.0 .1WE Oe5cription: MCSf:tvp factory ~tup Filtec time: 7:51 Tuesday, August 1·6. 2;016 => 11:00 Friday . August 26, 20 16 Filte~: Cls(1 2 3 4 56 7 8 19 10 11 12 13 ) Olt{ ESW) Sp(6 ,99) lffadWaY{>O ) Span ·o • a2S.<IS4) Scbeme: Vehicle classific:stion [SctH:me: F3) Total•31~3 4(1. 45 5. 10 3 .2'lb [1 005.0 ) 0 .1 '16 {43 .0) 10. 15 1.1'11. {341 .0) 15- 20 1 .8'11. {!575.0 ) 45- 50 65- 70 0.7~ (2()9.0 ) 0 .0'11. (1.0) 60-65 0 .0'16 {7.0) 55. 60 0 .1'16 {16.0) ~-40 !10-M 15 .2'lb {4776 .0) 0 .2'1' (57.0) 70 - 75 O.O'Ift(4.0 ) 20 - 25 ~. 1~ (1! 9e.O) 30- 35 25-'30 42.7'!1. {13443.0 ) 29.8111. (9390 .0}

\Pd~CC~~~~[)) Anthony J. DePrima NOV 2 1 2016 November 21 , 2016 57 5 Westwood Drive Dover, De 19904 OFFICE OF THE CITY CLERK Traci A. McDowell Dover City Clerk 15 The Plaza Dover, DE 19904 Subject: Proposed Stop Sign at Wyoming Avenue and Westview Terrace Dear Traci, I would appreciate if you can please give a copy of this letter and attachments to the Transportation and Safety Committee. 1. Following the last committee meeting two neighborhood meetings were held. People who signed the petition for the stop sign, and people who were opposed the stop sign were invited. The first meeting was at Ralph Taylor's home and the second was at my home. People from both sides attended. There were 18 people at my home; attached is an attendance list. The purpose was to see if there could be a solution to speeding on Wyoming Avenue that we all could get behind. At the end ofthe night, we all agreed with the follow recommendations: a. There was a consensus that there is a speeding problem on Wyoming Avenue that must be addressed by City Council. The folks at the meeting were committed to supporting this goal going forward. b. In lieu of a stop sign the group would like the following: 1. Continued enforcement of the speed limits. 11. Adding more 25mph signs, specifically at or on the flashing sign poles. 111. Continued monitoring of the flashing signs to ensure they are working. IV. Upon completion in Wyoming Road paving in the spring the road should be re-striped to give it the appearance of being naiTower; including a double yellow down the middle and white lines along the shoulders. Please consider paving Wyoming Road before other roads. v. Re-run speed studies to determine the effectiveness ofthe striping (consideration might be given to waiting until after the West Dover Com1ector is completed before doing a study). v1. If speeding is still a problem City Council should hold meetings with the community to consider further traffic calming measures. Some of the ideas discussed at our meeting were: mini-traffic circles, chicanes, neck downs, curb extensions, and medians.

2. Not everyone who signed the petition for the stop sign was at this meeting so I can only assume there are still residents who favor a stop sign. Therefore, I am submitting the following: a. A petition from residents opposed to erecting the stop sign. b. Copies of two early studies by Richard Beaubien, P .E. The studies show that unwarranted stop signs are ineffective for slowing traffic and compliance with stopping is poor. These studies done in 1976 and again in 1989 have stood the test of time. I could find no studies refuting their conclusion. Note that the studies point out that the Manuel on Uniform Traffic Control Devices states that "stop signs should not be installed for speed control." c. The Beaubien studies are the most cited studies by communities throughout the country that have made efforts to educate citizens about the ineffectiveness of stop sign as traffic slowing devices. I am attaching a screen shot of a Google search of the term "nuisance stop signs" that shows you just some of those cities. The City of Dover should consider joining these cities and counties in trying to education citizens about the ineffectiveness of nuisance stop signs. 3. Fixing the flashing warning lights and increasing enforcement appears to have worked. I attached an analysis of the two speed studies. It should be noted that during the October study period there was incident involving a track trailer that was stuck and slowed traffic for several hours, and subsequently the next day Verizon trucks were on site doing repair work. Nevertheless: a. The percent of people driving below 35mph increased from 80.6% to 89.8%. 35 mph is the common speed limit on other similar streets in Dover: Webb's Lane, Mifflin Road, Walker Road. b. There was a big decrease in speeding over 35pmh: on average we saw 48% drops in speeding between 35mph to 55mph. c. There was a significant increase in people driving under 30 mph (28.5%) and under 25 mph ( 109%) d. In both cases speeding over 55 mph was negligible, and most likely includes police and emergency vehicles. e. Average speed was less than 30 mph, down 2 mph. Thank you very much

Petitions Against the Stop Sign At Wyoming Avenue And Westview Terrace Submitted 11/21/16

Petition p SI~n at the corner of Wyoming and The fo~lowing residents are against installin a sto . Westview Terrace. This would b g e an unwarranted nmsance t . recommended for slowing traffic and d. . s op Sign. These stop sign are no• · accor mg to studies · ' angmg the traffic pattern may 1 . may actually mcrease speeds Ch a so cause accidents. · Printed Name Signature Address J\f~r:.1" - 1. j ."'me !\LJd i q&Jt- 1. I I 2. /J~v/)u1 !)~/! !.:7) (JeJ/AJOoJ /)IZ_ 3. J?oxcK-1 ros/IE_R_ ;f?L/f~ g Wct.d&~cf.re..__ 4. . :E; . 1(:1~'0 Jf,v A- j 1- 6sf~V! ~\ I/ s. ( L, lf ( ~ -~ ( \-1>-'\S:> t Jl.'\ t. QSo/0 ;).i..J L~(SLJVGUP(N ,R._ C r l, 7· Jv),e Mczchh'rtje(' s. i?eJxM A- }!\ mdv] 9. GA-K. RVJ( ,,,zo uI'),a>S 5"'LL b ·)i t !il'/ ~/) 2' wo o 6VURAJ C /PC!::" \0~~(\L\ S.rocJi.JDS ~ ~ z b ~hJ((\ C,y-_ Return Survey . to 575 Westwood Drive or call 302 270 6246 to h ave It . picked . up.

Petition The . following. rest·d ents are agamst . installin J a st . Westvtew Terrace. This wo ld b" g op stgn at the comer of Wyoming and u e an unwarranted n · , . recommended for slowing traffic and accor . . . ms.ance stop sign. These stop sign are not Changing the traffic pattern may al dmg. to studtes may actually increase speeds so cause accidents. · Printed Name Signature Address i ) 1 .. re s C' e 11 7 /3&-rho.-;~tt ?-~ -/-ch o. rc/ [) . , 4. / 35 C/l'e >C~tl fl'i ve. t ) I {r.; , ~--UM f /)l--t L(} L Return Survey to 575 Westwood Drive or call 302 270 6246 to h·ave .1t . ptcked up.

Petition The following resi·d ents are agamst . install· Westview Terrace. This would b mg a stop sign at the corner of Wyoming and e an unwarranted · recommended for slowing traffic and accordi ~uiS.ance stop sign. These stop sign are no! Changmg the traffic pattern may I ng. to studies may actually increase speeds a so cause accidents. ·· Printed Name Signature Address 1. Ca.rol " · v-. 1 • • '-/ 3c,',[ \J ~. 0 . _j)'fr" '---C<J"' ,IJ · 1;~ !. f<Ya.J6J I iJ1 Cresc_e,Jf b r \) JC' £t,-- 2.~' 1/IJL~ Col'\(\ e_ \~"'-"'~- 1 1 L 70 Cxcstemi DdhM.:y 5. \~~\~ t~(~·f(JJ~ c~U:V{: {~MD1 6. :fU /1 A c~ Af-J2.o L l 2_ {'J- (;.Yv,___\_ 8. 9. .J~ ~7)1 ~~ A() /<£L-Lt::'f- S67 l{)oov~E 1:£cP ~ w. Return Survey- to 575 w estwood Drive or call 302 270 6246 to h··ave .Lt . picked up.

Petition Terr~ce. This would be an unwarranted nu~an;:y stop.signs at the corner of Wyoming and Westview The following re Sl·d ents are against installin 4 . ::owing trafficand according to studies may actua:ltyoin Sign. These stop signs are not recommended for a 1c pattern may so cause acc1dents. crease speeds. Changing the tr tt· Printed name Signature Address / 0 ,3 3 Wc:sfv;eL<J T~rYGtce 1. :SCj ~;e Ke! 2. De.,,., G'e v( er r---- 3. J OC\1\ ~ntA. 4. (:_\,~0- ~~~ II o9 {.;J e I U r-f' LJ T'P( ;{; '1 W r"'s } ur'e0 feC 9. Return to 575 wes t wood Dr. or call 302 270 6246 to have it picked up.

Petition - Dover Ctiy Council The following residents are against installing a stop sign at the comer of Wyoming and Westview Terrace. This would be an unwarranted nuisance stop sign. These stop signs are not recommended for slowing traffic and according to studies may actually increase speeds. Changing the traffic pattern may also cause accidents. Printed Name Signature Address I . .L)/xYlLD SJr~ 7),~ ~~ g-{4 WJdu~ (2o{ ~ZJ LJe5fuood DY,"C_ 4. 8. Clm;:t .~-& Lo~!j h s~, tkc+JN}) 10. C1Jnsfu(l(!£ F. .S+rt~klanof ~ta~x/M!4.d <579 w~< 711. Return Survey to 575 Westwood Drive or call 302 270 6246 to have it picked up.

Petition - Dover Ctiy Council The following residents are against installing a stop sign at the corner of Wyoming and Westview Terrace. This would be an unwarranted nuisance stop sign. These stop signs are not .... recommended for slowing traffic and according to studies may actually increast:: speeds. ( \ Changing the traffic pattern may also cause accidents. Printed Name Signature Address I. I J16 J- , } IY/ ,' . .;•" . 7/ .....,.t 5. ; i ..,.._;,.._.' 6. ../. ) . j r· I tk. - 7. ~ -?~')') ' ( l-\. ). \ 9. 10. Return Survey to 575 Westwood Drive or call 302 270 6246 to have it picked up.

Petition - Dover Ctiy Council The following residents are against installing a stop sign at the comer of Wyoming and Westview Terrace. This would be an unwarranted nuisance stop sign. These stop signs are not recommended for slowing traffic and according to studies may actually increase speeds. Changing the traffic pattern may also cause accidents. Printed Name Signature Address 5. 6. 7. 8. 9. 10. Return Survey to 575 Westwood Drive or call 302 270 6246 to have it picked up.

Stop. Signs for Speed Control? Though they are frequently suggested as appropriate traffic control devices for reducing vehicular speeds in residential areas. they are not only ineffective in this respect but also frequently ignored, as this study shows. · By Richard F. Beaubien, P.E. City officials are frequently confronted Table I. Anvil Drive. by citizens demanding that stop signs be placed on residential streets to control Speed Studies speeding. These citizens are convinced that stop signs will reduce speeds on Without With their streets, thereby enhancing the Stop Signs Stop Signs safety of children playing near or in the Speed mph mph streets. City councils usually respond fa- vorably to these requests in order to pro- Low 15 15 vide a tangible sign of their concern for Average 24.1 24.6 public safety at a relatively low cost. 85th Percentile 28 28 Moreover, it seems obvious to them also that stop signs will reduce speeds and High 38 35 promote public safety. The Manual on Uniform Traffic Con- Stop Sign ()bscrvance fro/ Devices for Streets and Highways* states that stop signs should not be in- Number Percent stalled for speed control. One argument for this is that misuse of this traffic con· Full Stop 14 25 trol device promotes lack of respect for Roll Stop 35 64 all traffic control devices, and nonob· No stop ....§ _1_1 servance of such devices is potentially hazardous. Perhaps a more effective ar- Slop Stgn-Q Total 55 100 gument is that stop signs are not effective in reducing speeds. Recent studies in the Figure I. City of Troy, Michigan suggest that placing stop signs for speed control ,I tends to increase peak speeds. The stud- ies also showed an alarmingly high dis- I ; t obedience rate for these signs. The speed and stop sign observance studies were spot speed studies were conducted to de- termine the extent of it. quired at this intersection. Study results are shown in Table I. I '· ' I made from an unmarked city car, the The average peak speed was 24.1 miles Niagara Drhe. Niagara Drive is a col- former with a radar unit before and after per hour-a typical result for residential lector street in a new residential area. I the installation of stop signs. The highest speed observed for each vehicle was the speed recorded. The results are as fol- lows: streets in Troy, Residents petitioned City Council, and stop signs were placed on Anvil at Forge and Kettle Drives, two local streets, as a result of council Approximately 0.4 miles long, Niagara, too, has a curved alignment to empha- size its residential character and dis· courage speeding. Residents in the area, ;I Anvil Orin~. Anvil Drive is a collector action (Figure I). Studies conducted on concerned about speeding, petitioned street in a new residential area. The Anvil between these two streets 30 days City Council for installation of stop street is approximately 0.6 miles long after the stop signs were installed signs on Niagara and Eagle, a local ..·' and has a curved alignment to empha- showed that the average peak speed was street (Figure I). Spot speed studies i size its residential character and dis· 24.6 mph-or no significant difference made to determine the extent of the courage speeding. Residents felt that because of the signs. speeding problem found average peak speeding was a problem , however, and Stop sign observance studies made at speed to be 23.8 mph . Stop signs were 'II Anvil and Kettle at the same time installed, and speed studies were con- ·l· showed that only 25 percent of the mo- ducted again 30 days after installation. ii • U .S. Department of Transportation, Federal Hi ghw ay Administra tion. Washington, D .C ., torists came to a full stop, suggesting With the signs in place, average peak 1971. that drivers don't feel that a stop is re- speed was 25.2 mph, indicating that the .. 26 TRAFFIC ENGINEERING/ NOVEMBER 1976 ;~

-~ ~ -- -------=-----------~--------=-:'in :--' J ~ $r==_ ~ ffc == ~ c:: ~r=- ' ,---- - Stop Stgn- Q stop signs were not effective in reducing speeds. Figure 2. Stop sign observance studies, made at the same time, showed that 51 percent of the motorists came to a full stop at Eagle and Niagara, suggesting that about half Table 2. Niagara Drive. Table 3. Robimvood Street. of them don't feel that a stop sign is necessary at Eagle. Study results arc Speed Studies Speed Studies shown in Table 2. Without With Robinwood Street. Robinwood is a Without With Stop Signs Stop Signs collector street in an established residen- Stop Signs Stop Signs Speed mph mph tial area. It is about 0.5 miles long; its Speed mph mph connection with other streets provides a Low 10 13 continuous route between Livernois and Average 23.4 24.4 Rochester, both arterials.' In 1964, stop Low 15 15 Average 23.8 25.2 85th Percentile 30 30 signs were placed on Robinwood at Van High 38 38 Courtland (Figure 2), creating a three- 85th Percentile 26 29 way intersection, in response to citizen High 34 34 Stop Sign Observance requests after a child was killed ncar the intersection. The accident report in- Stop Sign Obscnance Number Percent dicates that the child was struck by a car Full Stop 21 26 going approximately 12 mph at a point Number .Percent some 150 feet east of the intersection. Roll Stop 39 48 No Stop 21 26 The driver was not considered to be at Full Stop 21 51 fault. Studies showed an average speed Roll Stop 14 34 Total 81 100 of 24.4 mph and that only 26 percent of No Stop _§ _!i. the motorists came to a full stop. The latter indicates that over a period of Total 41 100 more than II years, motorists have de- veloped a habit of not stoppi.ng for the signs on Robinwood at Van Courtland. The signs were removed on a temporary basis and speed studies conducted 30 days later. The average peak speed was 23.4 mph, so there was no significant difference in speeds after the stop signs were removed. Study results are shown in Table 3. Crimson Street. Crimson is a collector street in a new residential area; many homes are still under construction . It is about 0.6 miles long and has a curved alignment, like Anvil and Niagara. However, speeding seemed to be a prob- StopS ign- Q lem and residents in the area asked that stop signs be installed on Crimson at Crestline and on Crimson at Lakewood to reduce speeds (Figure 3), but they Figure 3. TRAFFIC ENGIN EE RING/ NOVEMBER 1976 27

Table 4. Crimson Street. agreed to await the results of an eval- uation of a temporary stop sign on Speed Studies Crimson at Crestline before pressing their request for permanent signs. Before Without With and after speed studies were made at Stop Signs Stop Signs locations chosen with the cooperation of Speed the residents. The speed studies were mph mph made on both sides of the signs, the re- sults separated by direction of travel. Westbound Crimson The after studies were made 30 days fol- East of Crestline lowing installation of the temporary Low 12 15 signs. Average 21.6 23.7 Sign observance studies were made at 85th Percentile 25 26 the same time. These showed that only 9 High 32 30 percent of the motorists came to a full stop, revealing that the other 91 percent Westbound Crimson did not consider a full stop necessary. West of Crestline Results of the studies are shown in Table Low 7 15 4. After seeing the results, residents Average 24.0 23 .7 agreed that stop signs were not effective 85th Percentile 29 27 in reducing speeds in their area. The NOW High 40 32 temporary signs have been removed. Conclusions. The studies conducted in IN ITS SECOND Eastbound Crimson Troy show that stop signs are not effec- PRINTING: East of Crestline tive in controlling speeds in residential Low 10 " 10 areas. The difference in average speeds is TRANSPORTATION Average 23.5 24.8 not significant after installation of stop AND 85th Percentile 27 27 signs but the tendency is for a slight TRAFFIC ENGINEERING High 32. 34 increase in speeds, possibly because mo- torists are trying to make up for lost HANDBOOK Eastbound Crimson time after passing the sign. The same The Handbook, with 23 chapters and West of Crestline tendency occurs in reverse when stop more than 1,000 pages. reflects the Low 8 15 signs which have been in place for many broadening out in recent years of the Average 24.5 26.6 years are removed . After removal, there role and responsibility of the trans- 85th Percentile 31 32 was no significant change in speeds, but portation engineer. Written by the High 39 36 speeds were slightly lower without the foremost authorities in their fields, stop signs. the volume emphasizes the major The stop sign observance studies elements of total transportation Stop Sign Observance showed that stop signs placed for speed planning. particularly as they relate to control are generally disregarded. Ap- traffic engineering. Chapters range Number Percent proximately half of the motorists made a from Vehicle, Highway and Travel rolling stop; one quarter came to a full Facts to Applications of Systems Eastbound stop; one quarter did not stop at aii. O Concepts. Full Stop 2 6 Roll Stop 19 54 Senior Editor is Professor John E. No Stop 14 40 Baerwald, Director, Transportation and Traffic Engineering, University of Total 35 100 Illinois. Associate Editors are Profes· sor Matthew J. Huber, Department of Westbound Civil Engineering, University of Min- Full Stop 10 10 nesota, and Louis E. Keefer, Deputy· r Roll Stop 42 43 Secretary for Planning, Pennsylvania 'f No Stop ~ _41. Department of Transportation. Total 98 100 The authors are Patrick J. Athol; J. ·J' Stannard Baker; Robert L. Bleyl; Samuel Cass; Paul J . Claffey; Donald Mr. Beaubien (M) E. Cleveland; Roger l. Creighton; J. is transportation Robert Doughty; John D. Edwards engineer for the Jr.; Daniel J. Hanson ; Slade Hulbert; City of Troy, a James M. Hunnicutt; Herbert S. suburban commu- Levinson; Donald W. Lautzenheiser; nity in the metro- ·Joseph C. Oppenlander; Henry D. politan area of Quinby; Woodrow W. Rankin; Detroit. Before Carlton C. Robinson; Neilan J. entering this posi- tion in 1975, he was chief engineer with Rowan; Robert E. Titus; Joseph A. the firm of Reid, Cool & Michalski, Det- Wattleworth; David K. Witheford; and roit. From 1968 to 1973 he served with Robert H." Wortman. the Federal Highway Administration in To order, use Publication Order Form. various parts of the country. 28 TRA FFIC ENGIN EERING/NOV EMB ER 1976

Controlling Speeds on Residential Streets BY RICHARD F. BEAUBIEN C omplaints of speeding on residential streets are a continuing problem for local traffic engineers and police depart- should be spending more than 90% of their time dealing with the problems of accidents on arterial streets. However, because the The speeding problem on residential streets tends to become associated with the problem of through traffic in residential ments. The observations in this article speeding problem in residential areas is areas. The through traffic is, in part, a describe the experiences of Troy, Michigan, "close to home," traftie engineers and police symptom of inadequate capacity on major in dealing with this problem over the past departments spend a disproportionate arterial streets. If adequate capacity were decade. Comparisons of 1975 speed study amount of their time addressing problems on available on the arterial streets, "outsiders" am! observance study results with 1985 and local streets, which are not comte{:ted to would stay on arterial streets rather than seek 1986 results at the same locations arc accident experience. alternate paths through residential areas. included. Speeding on residential streets is a season- al problem . ln northern climates, such as in Stop Signs Not Effective The Nature of the Problem Michigan , the complaints of speeding on residential streets virtually disappear during Many citizens, particularly those concerned Because the complaints of speeding in the months of November through March; about the safety of their childre!l, suggest that residential areas are often emotional, it is when residents spend less time out doors, " maybe a stop sign will slow traffic on our important to put the problem into the problem or perceived problem seems to street." perspective. By understanding the nature of disappear. Before-and-after speed studies conducted the problem, we may be able to arrive at A 25-mph speed limit may be unreason- in the City of Troy indicate that stop signs better S<Jiutions for our citizens. ably low in new subdivision areas with are not effective in controlli.ng speeds. The problem is partly social and partly adequate street design standards. The Compliance with these stop signs is very political . Elected officials confronted with national basic speed limit rc~.:ommended in poor, and over a period of years the a citizen request for a stop sig n might find the Uniform Vehicle Code is 30 mph . ln compliance degrades to a point where it easy and inexpensive to grant the request, Michigan , the lowest speed limit permitted motorist~ behave as if the sign were not thus demonstrating their "compassion" and under state law (except in park areas) is 25 present at all. This degradation is shown in "concern for local needs." Altt10ugh this mph . Naturally, residents insist that the Table I, which compares the compliance demonstration of compassion is inexpensive speed limit be as low as possible in their rates for stop signs installeq to control speeds in terms of immediate capital costs, its long- neighborhood, although the design speed on on residential streets in Troy. The loca!ions term impact can be detrimental to public their street may exceed 25 mph . Motorists of these stop signs in relation to the health , sa fet y, and welfare. Studies have who travel local streets every day rend to surrounding street system are shown in shown that unwarrant ed stop signs are travel closer t.o the design speed than the Figures I and 2. ineffective in controlling speeds; such signs speed limit, and this creates observed spt-eds Tables 2, 3, and 4 compare the results of are often di srega rded , leading co a lack of in excess of the posted speed limit. This 1975 speed studies on streets with respe t for traffic control devices. 1 condition is viewed with alarm by unwarranted stop signs to 1986 study results ln 1987, 90 % of all accidents and 96 % of neighborhood residents, but it may not on the same streets. Sample sizes for these the injury accidents in Troy occurred on actually be a traffic safety problem because speed studies were limited because of the arterial, rather than residential. streets. This the design speed may be greater than 25 relatively low volumes present on these suggests that transportation professionals mph . residential streets. Observers were instructed ITE JOURNAL • APRIL 1989 • 37

to collect as much data as poss.ible in a 30- The signs were installed pursuant to an vehicles found to be speeding has been to 60-minute time period. As a result, ordinance adopted by the Troy City Council , somewhat successful in control.ling speeds. samples were generally in the size range of the local legislative body. There is no known In that program, neighborhood residents 40 to 100. In all cases the sample size was ca e law in Michigan t11at would Ioree the report license plate number of speeding greater than 40. removal of unwarranted stop s ign Two-way daily traffic volume is approxi- installations. mately 1500 on Anvil Drive, 2700 on Niagara Drive, and 1100 on Robinwood The Solution... in Parts Table I. Stop Sign Observance on Street. Peak hour volumes are approximately Selected Residential Streets In Troy 170 on Am•il Drive, 300 on Niagara Drive, There is no one, simple answer to the 1975 1985 and 120 on Robinwood Street. problem of speeding in residential areas. The location (%) (%) All of the intersection study sites were traffic engineering departrnent in the City of relatively flat in terrain, o there were no Troy has suggested to residents that the Anvil Drive sight distance restrictions resulting from neighborhood itself must take some respon- Full stop 25 13 vertical curves. Horizontal alignment of Roll slop 64 60 sibility for the solution. A majority of the No stop 11 27 these streets has a minimal impact on speeding violations issued in residential available sight distance. On Anvil Drive, areas go to residents of that street or to streets Niagara Drive horizontal alignment is relatively straight for in the immediately surrounding area . Full stop 51 21 a distance of 500 feet to the north and south Residents of the immediate area can thus Roll stop 34 74 of Forge Drive. It is also straight for a address the problem by increasing the No stop 15 5 distance of 900 feet north and 700 feet south awareness of the problem in the of Kettle Drive. On Niagara Drive , neighborhood and by assisting the police Robinwood Street horizontal alignment is straight for a distance department. Full stop 26 16 of 600 feet to the west and 300 feet to t11e A program in which license plate number Roll stop 48 65 No stop 26 19 east of Eagle Drive. On Robinwood Street, reports are used to identify the owners of horizontal alilgnment is straight tor a distance of 300 feet to the west and 1000 feet to the east of Van Courtland Street. Intersection sight distance at all locations is limited by houses at the corners. Houses at the Anvil /Forge intersection are 40 feet from the edge of the pavement, and houses at the Niagara/ Eagle intersection are 40-50 feet from the edge of the pavement. Houses at the Robinwooci/ Van Courtland intersection are 30 feet from Van Courtland Street and SO feet from Robinwood Street. Unwarranted stop signs were placed on Anvil and Niagara in 1975. ln 1979 the Anvil/Forge intersection was converted to a four- way stop, despite the fact that warrants for a multi-way stop were not met. Unwar- ranted stop signs were placed on Robinwood in 1964; they were removed for a brief trial period in 1975. In each case, the average speed in 1986 was higher than in 1975 at the same location. Although the differences may not be statistically significant , it seem apparent that the passage of time does not make stop signs effective in controlling speeds. Speed studies were made using a mdar unit on an unmarked city car. The highest speed observed for each vehicle for a distance of approximately 500 feet either side of the intersection was the speed recorded. Stop signs installed in the City of Troy that do not meet the warrants established in the lvfanual on Uniform Ti-affic Control De•'ices are con idered to be legal and enforceable. Figure I. Street plan showing Anvi1 and Niagara study sites. 38 • llE JOURNAL · APRIL 1989

vehicles to the police department and the Table 2. Speed Studies, Anvil Drive police department locates the vehicle owner Speed Without Stop With Slop With Stop through the secretary of state's records; the (mph) Signs. 1975 Signs, 1975 Signs, 1986 police department th en writes to the vehicle low 15 15 18 owner. requesting safe driving practices and Average 24.1 24.6 26 compliance with local traffic ordinances. 85th Percentile 28 28 30 One of the positive effects of this program High 38 35 34 has been to t:onvert many of Troy's younger drivers into pedestrians : These younger dri vers found that a vehicle was no longer Table 3. Speed Studies, Niagara Drive available to them after the vehicle owner (a Speed Without Stop With Slop With Stop parent) learned how it was being used. (mph) Signs, 1975 Signs. 1975 Signs. 1986 The City of Troy has a committee of Low 15 15 20 citizens appointed to advise the City Council Average 23.8 25.2 26 on proposed traffic regulations. This Traffic 85th Percentile 26 29 29 Committee gives a " first hearing" to High 34 34 33 neighborhood traffic problems and recom- mends new traffic regulations tor City Table 4. Speed Studies, Roblnwood Street Council approval. Traffic Commiuee involvement is important because it allows Speed Without Slop With Stop With Stop the light of objectivity to shine on the (mph) Signs, 1975 Signs, 1975 Signs, 1986 problem bctorc the political decision is Low 10 13 21 made? Discussions between commiuee Average 23.4 24.4 30 members and citizens cont.:erned about 85th Percentile 30 30 34 High 38 38 42 speeding on their neighborhood streets arc helpful in achieving an understanding that stop signs are not a panacea and that there is no one easy solution. This discussion itself is part of the solution to the social and political aspects of the problem . References 1. Beaubien. Richard F " Stop Signs for Speed Control?" Tmffic Engineering 46(November 1976): 26-28. 2. Beaubien, Richard F. "Citizen Participation in Traffic Safety." ITE J01mwl 52( Marc h 1982):29-31. • Richard F. Beau- bien is rhe transpor- tation director f or Hubbell, Roth and Clark. Inc., consult- ing e ngine e rs, Bloomfield Hill s. Michigan . Before entering this position in 1989, he served 14 years ll S transporration director f or the City of Troy, Michigan. Beaubien received his M.S. C. E. . B.S.C. E. . and A.B. degrees from the University of Michigan. Beaubien is a registered p ro- fessional engineer in Michigan, llliniois, and California. He is a Fellow Member of the lnstitllte of TransporTation Eng ineers and currently sen ,es as the lnstitllte's lnte r- narional Vice -Presidenr. J<'igurc 2. Street plan showing Robinwood study site. ITE JOURNAl · APRil 1989 · 39

:J nuisance stop signs - Gc X + I' 0 google.com/#q=nuisance+stop+signs ' ft Del-One Federal EUP~ http- II Pandora Internet "'(:( Files- SkyDrive "'(:( Home- Dropbox (PDF] About stop Signs - BuckeyeAZ.gov www.buckeyeaz.gov/Wp-contentluploads/20 14112/1 .4.2_Abool-stop. Signs.pdt ... Wtll m ore stop signs help reduce speeding on Q;Ur streets? 1 of 2 .. . where nuisance STOP si gns are installed, btl! '"' cleo S?Ye;ed its also increased between. ou've ..,i~ite d lh1s p&i}2 2 tioc.es. Last vi:i.l:!" 1·1';71 ;a Street Transportation Stop Signs - City of Phoenix https:lfwww. phoenix.gov/streetsisafety-topicslstop-signs • Studies show that speed is reduced in the ~mmed~ste vicinity of nuisance STOP signs . Hc1vever. sueeds are higlc-er becrw.;en inters-ecbons tha-n btfon; lhe signs--· Stop Signs - Livonia M\-W.ci.livonia.mi.usJGovemmeotiCornmissions/TrafticCornrrjssion/StopSigns.aspx ... These studies show th&t SP'£!ed wss only reduced in, lhe immediate vicinity (about 100 to 150 feei) of lhe "nui~ o " •· '~>!) s i;g.n s.. &J!. s;;ee£G were !'<clu3:~y 'ligi'Br . To Get safer Streets, raffle Lights and Stop Sfgns Aren't the Answer ... W\WI.streetsbtog.orgt ...Ito-get-safer-stree1s-traffic-lighls-and-stop-signs-aJent-the-answ... .. Apr 26 , 20 1 - While speed is reduoecl in the i mmedieie vicinity of the 'nui sance' stop signs, 3peeds are actusf~ higher between in!.erseclocms then they 'h'<lllld . ~' ou ·.•isited th.is ~ a.ge n• ~ 91:.!71'15. Stop Signs 1 Oakland County Road Comm ssion, Ml \'AWt.rcocweb org LAbout Us , frequently Asked Questions (fAQs) • These stud<€5 .oilc~" msi speed 'lt-.;,s -m~lr r.:-dcceo in fu- imn:.ediate vicinity { '"c:ui. 100 lc 150 1.:6!} af lhe "nuisant:-'f'' stop s 1:gns e.m. Sj)eec!s we'e a.c.tuai·f nigher __ _ How do I request a stop sign to slow traffic on my street? \WNt.bantlolomew.in.gov/.. J1 O!Hla~v-<I<H-request-yoo-put-up-a-stop..sign-to~ovt-tral .. Stlliltes sh·)•N that sp.e.ed is rea\i•::ed ~ !he i:1'medi.ffie "'~nilj of the 71luisan-c~· st-op sliJn bu\ I<Je:."e actually nigher betwe.en intersections than before they were .•. NTMP Stop Signs wo.wt. mu rriet a . org/civicallilebanklblobdload . ~?BiobtD=3012 Stop si gns ma~· be used at three-way or four-wav . . Stop si{}n.s must be ~. sml~r~h;d in ocder to justify .. . Stop signs that are perceived as 'nuisance slops·. (PDF] STOP signs - Glendale IU1ps:l/www.glendaleaz.comlbrochi.Iesldocurnenls/stopsign.pdf .. --STop- S<gns 'L"'fr not ine&ntioibe rrost's!led a& Sl~eeri ~re.Elk,rs Of to bear.. nuisance iodnvers. by inierruplin~ their. traffic ftow. IIFoum\•sv STOPS are onlv .

Wyoming Speed Studies: Before and After Warning Light Fix and Increased Enforcement Fixing the flashing warning lights and increasing enforcement appears to have work, it should be noted that during the seven day October study period there was incident involving a track trailer that was stuck and slowed traffic for several hours, and subsequently the next day Verizon trucks were on site doing repair work. Nevertheless: • % of people driving below 35mph increased from 80.6% to 89.8%. 35 Mph is the common speed limit on other similar streets in Dover: Webb's Lane, Mifflin Road, Walker Road. • There was a big decrease in speeding over 35prnh: on average we saw 48% drop in speeding between 35mph to 55mph. • There was a significant increase in people driving under 30 mph (28.5%) and under 25 mph (109%) • In both cases speeding over 55 mph was negligible, and most likely includes police and emergency vehicles. • Average Speed was less than 30 mph, down 2 mph. Start: 8/16/2016 7:50 End 8/26/201611:00 243 hours Start: 10/17/1616:42 End 10/24/1616:12 168 hours Range Speed Vehicles % Speed x vehicle Range Speed Vehicles % Speed x vehicle Change in 'Y<% Change 5-10 7.5 43 0.1% 322.5 5-10 7.5 32 0.2% 240 0.1% 100.0% 10-15 12.5 341 1.1% 4262.5 10-15 12.5 199 1.0% 2487.5 -0.1% -9.1% 15-20 17.5 575 1.8% 10062.5 15-20 17.5 972 4.7% 17010 2.9% 161.1% 20-25 22.5 1596 5.1% 35910 20-25 22.5 2199 10.7% 49477.5 5.6% 109.8% 25-30 27.5 9390 29.8% 258225 25-30 27.5 7873 38.3% 216507.5 8.5% 28.5% 30-35 32.5 13443 42.7% 436897.5 80.6% 30-35 32.5 7167 34.9% 232927.5 89.8% -7.8% -18.3% 35-40 37.5 4776 15.2% 179100 35-40 37.5 1662 8.1% 62325 -7.1% -46.7% 40-45 42.5 1005 3.2% 42712.5 40-45 42.5 318 1.5% 13515 -1.7% -53.1% 45-50 47.5 209 0.7% 9927.5 45-50 47.5 83 0.4% 3942.5 -0.3% -42.9% 50-55 52.5 57 0.2% 2992.5 50-55 52.5 26 0.1% 1365 -0.1% -50.0% 55-60 57.5 16 0.1% 920 55-60 57.5 21 0.1% 1207.5 0.0% 0.0% 60-65 62.5 7 0.0% 437.5 60-65 62.5 5 0.0% 312.5 0.0% 0.0% 65-70 67.5 1 0.00/o 67.5 65-70 67.5 0 0.0% 0 0.0% 0.0% 70-75 72.5 4 0.0% 290 70-75 72.5 8 0.0% 580 0.0% 0.0% 31463 982127.5 20565 601897.5 Cars per day 3107. Average Speed 31.2 Cars per day 2937 Average Speed 29.3 Analysis by Tony De Prima 11/19/16 Page 1

Bicycle & Pedestrian Subcommittee Members James A. Hutchison, III, Quarterly Update November 2016 Chair Chris Asay Frances Riddle Jayce Lesniewski Creating Safe Routes for Pedestrians & Cyclists Dave Moses Gerry Pennington Summer 2016 has been Senator Bikeway, is a nector project is Andy Siegel quite a active time for mixed use pathway through DelDOT’s Trans- the Bicycle/Pedestrian planned to give pedestri- portation Alternatives Created in 2012 by the Subcommittee and our ans & cyclists traveling Program (TAP), the pro- Safety Advisory & Trans- community partners. east/west bound safe posed improvements at portation Committee. passage. Phase I will run the connection of North They have been tasked Working with Century from Saulsbury Road to & West Streets are in- with identifying gaps in Engineering and West Street on the tended to improve traf- the bicycle and pedestrian DelDOT a series of pub- southern side of Route 8. fic safety for drivers, pe- network in Dover and lic workshops were held A public workshop was destrians and cyclists. identifying areas where focusing on the Senator held July 25 at Booker These improvements will the city can work together Bikeway and West T. Washington Elemen- be ADA compliant & with local partners to im- Street Trail Connection prove the atmosphere for tary school, which is on improve safety for all in Dover. bicyclists & pedestrians. the bikeway path. Plans travelers while offering were also on display at an 8 - 10’ concrete path- the Dover’s Farmer’s way to the DART the Thursday Fun Rides Market on July 27. To transit center. Semi- date, we have heard no final plans will be com- 2017 Happenings opposition of the project. pleted this fall, with final Next steps include de- plans in the winter of Walk Friendly Community sign work this Fall with 2017 and construction Staff & subcommi ee members are construction to start in to begin with approved preparing our first applica on to early 2017. funding in the fall. declare Dover a Walk Friendly Community in 2017. West Street Trail Con- Bike Friendly Community Welcome New Members Staff & subcommi ee members are preparing to submit our 2nd applica‐ on, hoping to achieve Bike Friendly While the subcommit- ence ad knowledge of ing a Wesley - Bike/ Community designa on in 2017. tee hated to say good the issues facing Do- Pedestrian Subcommit- bye to Kathy Doyle & ver’s cyclists and walk- tee partnership. She is Dover Duathlon Pat Gallagher, both of ers. an active walker in April 15, 2017 whom were truly dedi- Frances Riddle (Fran) downtown Dover. You have plenty of Ɵme to get cated to biking & pe- was known to the sub- Gerry Pennington, an in shape to enter!! destrian awareness in committee members as Army veteran brings a May ‐ Na onal Bike Month Dover, we were pleased she recently represent- wealth of experience as to have Frances Riddle ed Wesley College at Bike Week ‐ May 15 thru 19 a cyclist & jogger in and Gerry Pennington the table prior to her Dover’s Bike To Work Day ‐ Dover. He is looking come on board to share retirement. She is look- May 17 forward to addressing their valuable experi- ing forward to continu- our challenges. Ride of Silence ‐ May 17

Page 2 July - November 2016 Safety Concerns are discussed Wan ng to ensure they measures the police are Anthony Aglio of DelDOT are mee ng the needs of undertaking to do their shared the BLOS (Bicycle cyclists and pedestrians part. Many mes, a pe‐ Level of Stress) model the subcommi ee has destrian/cyclists who is with us at the October Bike Rodeo held at Schu e Park been discussing the vari‐ cited for viola ons are 2016 mee ng. The map‐ for the Summer Playground Camp ous traffic fatali es of found to have more se‐ ping system assists them both pedestrians and ries offensives. Thus, in the project priori za‐ cyclists. numbers of cketed vio‐ on process providing la ons for just a pedestri‐ data to support funding At our April mee ng, Lt. an/cyclist viola on is not of projects that will be Chris Hermance of Dover quite as notable. The the most beneficial for Police Department group will plan to invite connec vely while over‐ shared some informa on Dover Police back for coming barriers. We are on how they address con nued discussion on looking forward to having safety issues the and safety. this data for Dover. Regional Bike Plan Update The purpose of the Do‐ bicycle and reduce auto‐ shops are being held to ver/Kent County Metro‐ mobile use. The Region‐ solicit input from our politan Planning Organi‐ al Bicycle Plan is de‐ community members. za on’s Regional Bicycle signed to coordinate Plan is to provide a plan with exis ng local bicy‐ We will keep you posted for improving bicyclists’ cle plans throughout the on the plan as updates safety and access to lo‐ region. are completed and the cal facili es and ser‐ updated plan is re‐ vices. It is intended to Efforts are underway leased. help increase the num‐ now to update the plan. ber of trips made by A series of public mee ngs and work‐ Walk Friendly Community What is a Walk Friendly muni es that are work‐ the applica on for a De‐ Community? ing to improve a wide cember 2016 submission. range of condi ons relat‐ Walk Friendly Communi‐ They are compiling and ed to walking, including es is a na onal recogni‐ preparing the applica on safety, mobility, access, on program developed data covering the topics and comfort. to encourage towns and of planning, educa on & ci es across the U.S. to Staff members Eddie Diaz encouragement, engi‐ establish or recommit to and Carolyn Courtney neering and enforcement a high priority for sup‐ along with Fran Riddle of of pedestrian issues for por ng safer walking the Bicycle/Pedestrian Dover. environments. The WFC Subcommi ee, are work‐ program recognizes com‐ ing together to complete

ACTION FORM PROCEEDING: Council AGENDA ITEM NO.: DEPARTMENT OF ORIGIN: Public Works- Wastewater DATE SUBMITTED: 11-17-16 PREPARED BY: Sharon Duca, P.E., Public Works Director/City Engineer SUBJECT: Municipal Separate Storm Sewer System (MS4) Inventory and Inspection Proposal REFERENCE: N/A RELATED PROJECT: N/A APPROVALS: City Manager, Controller EXHIBITS: Consultant Proposal EXPENDITURE REQUIRED: $65,948.00 (FY17) BUDGET REMAINING: $136,584.14 FUNDING SOURCE (Dept./Page in CIP & Budget): Department of Public Works- Streets Division, Operational Account Program Supplies, Name: Account No.: 110-1800-554.20-26. TIME TABLE: Public Works Director will authorize proposal within ten (10) days of Council approval. RECOMMENDED ACTION: Staff recommends authorizing the five (5) year proposal with KCI Technologies, in the amount of $329,740.00, initiating with $65,948.00 in FY17. BACKGROUND AND ANALYSIS On August 28, 2003, the City of Dover was issued a National Pollutant Discharge Elimination System (NPDES) State permit from the Delaware Department of Natural Resources and Environmental Control (NPDES). The City is required to perform six (6) elements to comply with our Storm Water Management Program. One of the elements is illicit discharge detection and elimination, which includes keeping a storm sewer map active, accurate and current. The proposal from KCI Technologies includes mapping the City's MS4, locating and inspecting stormwater point structures (inlets, outfalls, junction boxes, and manholes), stormwater linear structures (pipes and ditches), and stormwater polygonal structures or best management practices (BMPs). Each asset will be inspected for structural integrity. The end product will include a web-based map viewer of all the infrastructure and the ability to input and store information and future inspection data on each structure. This proposal would satisfy the above referenced element of the Storm Water Management Program. The City currently has a map of the existing structures that collect, convey and discharge stormwater, however, it is not 100% accurate and structural integrity inspections has not been performed to date. KCI Technologies is not a current consultant that is under contract with the City of Dover. However, they are a consultant under contract with the Delaware Department of Transportation (DeiDOT). The City's purchasing policy allows for cooperative purchasing through other government contracts, which is what is being proposed with this project. This work was budgeted for in the FY17 Operating Budget, specifically within the Department of Public Works, Streets Division. The entire project is proposed over a five (5) year term, which equates to $329,740.00 or $65,948.00 per year. It is recommended that the City authorize the proposal from KCI Technologies to perform the Municipal Separate Storm Sewer System (MS4) Inventory and Inspection for a five (5) year contract, which will be initiated in FY17 in the amount of $65,948.00.

ISO 9001 :2008 CERTIFIED E NG I N E E R S • PL A N ER S • S C I E N TI S T S • C ONS T R UC T I ON M A N AGE R S KCI TECHNO LOG IES 1352 lvln rrmvs Road , Sui te 100 • Ne wa rk , DE 197 ll • P ho n ~ 302 -73 L-9 L76 • Fax 302 -73 1-780 7 October 21, 2016 KCI's Point of Contact: Mr. Jason A. Lyon, PE Mr. Bruce Thompson Water/Wastewater Manager 1352 Marrows Road, Suite 100 City of Dover Newark, DE 19711 Department of Public Works 302-318-1068 P.O. Box 475 Bruce. Thompson@kci.com Dover, DE 19903 RE: City of Dover Phase II MS4 Permit MS4 Inventory and Inspection 2016 Cost Estimate Dear Mr. Lyon: KCI Technologies, Inc. (KCI) is pleased to provide a Cost Estimate for the inventory and inspection of the City of Dover's Municipal Separate Storm Sewer System (MS4). This work is related to the City's Phase II MS4 Permit and would assist the City in tracking and recording Permit requirements . KCI is a full-service environmental and engineering firm, offering a highly qualified and respected team of professionals, with proven inventory and inspection services related to compliance with stormwater National Pollutant Discharge Elimination System (NPDES) Permits. KCI LEAD OFFICE KCI Meeting Office KCI TECHNOLOGIES, INC. KCI Support Office KCI, established in 1955, is one of the largest full-service, employee-owned consulting firms in the Mid-Atlantic Region. We are a multidiscipline firm with extensive experience in municipal and industrial NPDES Permit requirements. KCI's excellent record of performance on similar NPDES projects is based on careful attention to our quality of work, budget and cost controls, and compliance with our clients' schedules . KCI's staff of professional engineers, scientists, planners, inspectors, and support personnel numbers more than 1,000, of whom 68 work in Delaware. 1\.n ow /eclgc • Crcativ ll\' • lnnovotwn \V WW. KC! .CO M Elllplo l'rc-Ownrd _in cc l 988

CITY OF DOVER MS4 INVENTORY AND INSPECTION PROJECT TEAM KCI has an MS4 Inventory and Inspection team that has been serving NPDES clients throughout Delaware since 2006 . A brief description of our team structure and qualifications is provided below. All work under this agreement will be led by Senior Project Manager, Mr. Bruce Thompson. Mr. Thompson has 28 years of experience, including over ten years managing DeiDOT and NPDES Stormwater Quality Program agreements. For the City of Dover MS4 Inventory and Inspection contract, Mr. Thompson will provide oversight, project billing, and client coordination . ·- KCI Field Crew Michelle Knapp James Snyder Ms. lydia Hill, Senior Project Scientist, will be responsible for Reporting and Quality Assurance/ Quality Control. For the past 13 years, she has ensured that annual reports and all other NPDES documentation prepared by KCI are accurate and consistent with the needs of NPDES clients. Mr. Matthew Ortynsky, Senior Project Scientist, will manage the work of the MS4 Inventory and Inspection Field Team. Mr. Ortynsky has over 10 years' experience with KCI and NPDES compliance services . He has performed MS4 Inventory and Inspections and currently manages our four NPDES Field Teams. Ms. Michelle Knapp, Scientist, will lead the MS4 Field Team. Ms. Knapp has two years' experience conducting MS4 inventory and inspections for our DeiDOT contracts . She will be using a customized field data collection application powered by the ESRI ArcEngine platform to inventory and inspect the City's stormwater infrastructure . Mr. James Snyder, Scientist in Training, will provide assistance and technical support to Ms . Knapp. Mr. Snyder has one year experience with KCI, working as a Team assistant on an MS4 Field Team . - ~ ffi October 21 . 2016 Page 2

CITY OF DOVER MS4 INVENTORY AND INSPECTION RECORD OF PERFORMANCE/ DEMONSTRATED ABILITY The City of Dover MS4 Inventory and Inspection services will be performed by KCI's Delaware Water Resources Practice. This group, currently consisting of 13 scientists, has been providing NPDES compliance services to Delaware clients for over 13 years. Our solid work performance and reputation for responsiveness has allowed our Delaware Water Resource Practice to grow from two on-call wet weather sampling staff to 13 full-time staff. We are experts in the field of MS4 Inventory and Inspection and can provide these services to NPDES permittees at a reasonable cost, because we have the staff, equipment, training, and Standard Operating Procedures in place. KCI owns and uses the following NPDES equipment for NPDES services in Delaware: 5 Panasonic Tough books 7 Trimble GPS 3 Envirosight Camera-on-a-Stick SCOPE OF WORK The purpose of this task is to map the City's MS4, locating and inspecting stormwater point structures (inlets, outfalls, junction boxes, and manholes), stormwater linear structures (pipes and ditches), and stormwater polygonal structures (BMPs) . October 21 , 2016 Page 3

I I CITY OF DOVER MS4 INVENTORY AND INSPECTION For the City of Dover's MS4 Inventory and Inspection services in 2016, KCI will perform the following: 1. Client Coordination KCI will schedule regular coordination meetings with the City of Dover during the course of performing the MS4 Inventory-Inspection to discuss the status of the project or any issues that may delay the timely completion of the work. KCI will meet with the City prior to the start of field work to discuss the specific stormwater data that the City of Dover wants to be collected. At a minimum, KCI would inventory and note the type, size, and material of all stormwater structures (inlets, outfalls, junction boxes, and manholes), all stormwater conveyances (pipes, ditches), and all BMPs. Additionally, KCI would conduct a condition assessment of these stormwater features that would note any defects (such as full of sediment, cracked pipe, etc.). Photos would also be collected (landscape/structure/defect). All of this data would be stored in a City of Dover NPDES Geodatabase. The storrnwater data would also be made available to the City for incorporation to their existing databases. The advantage of a separate NPDES Geodatabase is the ability to use this database as a means to track and store a majority of the City's NPDES permit-required documentation . 2. DeiDOT NPDES Field Application, Geodatabase, and Map Viewer KCI plans to use an existing custom NPDES Geodatabase that was developed for DeiDOT. DeiDOT has decided to share their database with other Delaware NPDES permit holders. KCI will submit to DeiDOT, on behalf of the City, an "Authorization to Share Request" letter on City letterhead . As a Phase II MS4 Permit holder, the City of Dover would have access to this invaluable tool that would allow the City to have a desktop view of your MS4, to track maintenance issues and illicit discharges, and store BMP inspection reports and IDDE investigations, etc. KCI developed, and is maintaining, DeiDOT's comprehensive NPDES Geodatabase. This geodatabase includes a Field Data Collection Application, Geodatabase, and Map Viewer that supports the business processes associated with creating, viewing, and reporting of NPDES data within the context of DeiDOT's mandated NPDES permit requirements . The proposed solution manages stormwater structures, conveyances, and BMP facilities and ancillary activities, including Work Orders, Photos, Attachments, and IDDE I Water Quality Investigations, within a single framework . --= Kcl October 21 . 2016 Page 4

CITY OF DOVER MS4 INVENTORY AND INSPECTION 3. MS4 Inventory and Inspection KCI will begin the major field task after meeting with the City to determ ine the exact MS4 inventory and inspection data that will be collected by KCI's MS4 Field Team . KCI will use the DeiDOT NPDES Field Application to collect stormwater data, which integrates GPS, Toughbook computer, and Camera-on-a-Stick Technology. Sub-meter GPS units linked to rugged laptops are used to locate features, collect inventory data, and assess condition of point features (manholes, inlets, outfalls), linear features (pipes, ditches) and polygon features (BMPs) . During MS4 inventory and inspection, the KCI field crew will inspect pipe condition using a special pole-mounted camera that allows the user to optically zoom up to 200 .-------~...,...--....,...------....­ feet inside pipes without having to perform Confined Space Entry. The Camera -on -a-Stick is configured to output a digital video feed to the Toughbook via high- speed USB connection . The KCI field crew will also use the Field Data Collection Application to identify issues requiring maintenance, such as the accumulation of sediment and debris in a stormwater conveyance . Potential Maintenance Work Orders are documented and photographed in the Field Application and uploaded to the ESRI Database for review and approval by KCI's Project Manager prior to Client submission . The following are the basic procedures we use for conducting MS4 Inventory and Inspection: • Locate stormwater points for each drainage inlet, outfall, manhole, junction box, swale end, etc. with sub-meter accuracy using Trimble Global Positioning System (GPS). • Input conveyance structures between structure points to define stream channels, ditches, pipes, and hydraulic connectors . --= K'(1 October 21 . 2016 Page 5

CITY OF DOVER MS4 INVENTORY AND INSPECTION • Input appropriate inventory data and photos (structure type, location, size, material, etc.) into the field application using Panasonic Tough book computers. • Input appropriate inspection data and photos (structure condition and structural integrity), into the field application using Panasonic Tough book computers and pole mounted cameras. • Note the presence of visual clues or unusual flow that indicate the potential for illicit discharge for further investigation. • Affix City-approved "ONLY RAIN DOWN THE STORM DRAIN" markers on each drainage inlet within subdivisions . • Follow Public Interaction Guidelines developed by KCI for communication with the public. • Immediately notify appropriate City of Dover maintenance staff when unsafe conditions are found (broken or missing grate, sinkhole) . 4. Upload MS4 Data to Web-Ba sed Map Viewer On a daily basis, KCI will upload field-collected data to the custom Web-Based Map Viewer. This viewer will allow the City of Dover to see the location of stormwater structures and conveyances and all their associated properties, including type, size and material. SCHEDULE AND STRATEGY FOR COMPLETING THE WORK KCI suggests beginning the work in January 2017 and performing the work over five years . Based on data received to-date, the City owns approximately 6,500 stormwater structures. KCI can typically inventory and inspect approximately 100 stormwater structures (including associated conveyances between structures) in a week. Therefore, we anticipate 65 weeks to complete the work. KCI recommends conducting the work over five years (20% per year I 1,300 structures per year I 13 weeks per year), which aligns well with the new NPDES Permit requirements for IDDE evaluations. KCI will conduct the MS4 Inventory and Inspection work in tandem with the City's IDDE requirements. This would save the City money, as KCI's MS4 Team would be screening the outfalls during their inventory and inspection work. Any potential illicit discharges would be referred to our IDDE Field Team. -- - -- ffi_ October 21 , 2016 Pag e 6

I CITY OF DOVER MS4 INVENTORY AND INSPECTION COST ESTIMATE MS4 Inventory and Inspection KCI's total cost estimate for the MS4 Inventory and Inspection work is $329,740.00, or $65,948 .00 per year over a five-year term . Illicit Discharge Detection and Elimination If KCI conducts the 20% IDDE work simultaneous to the MS4 Inventory and Inspection work, the total cost for the IDDE work would be $78,484.00, or $15,696.80 per year over the five-year term . Conducting the IDDE work separately with an lODE-dedicated field crew would cost over $150,000 to screen 650 outfalls. The savings are significant when the two tasks are combined . The total cost for MS4 Inventory and Inspection and IDDE work is $408.224.00, or $81,644.80 per year. The following page shows a breakdown of the cost estimate. October 21, 201 6 Page 7

City of Dover MS4 Inventory and Inspection /lODE Services Years 2017 - 2021 COST ESTIMATE 10/21/2016 Labor Costs Description of Work SPM SPS SCI-Office SCI-Field Pay Rate $52.00 $40.00 $24.00 $38.00 Bill Rate $135.00 $115.00 $75.00 $120.00 Labor Cost MS4 Inventory and Inspection Per Task Kickoff and Status Meetings(assume 10 meeting s) 24.0 40.0 $7.840.00 MS4 Inventory and Inspection (assumes 6500 storm water structures) 20.0 120.0 2500.0 $316,500.00 $324,340.00 lODE (conducted during MS4 lnv-lns) lODE Evaluation and Outfall Screening_(650 outfalls @_20%per year) 30.0 g8.0 117.0 400 .0 $72.095.00 $72,095.00 $396,435.00 Hours 74.0 258.0 117.0 2,900.0 3,848.0 10,320.0 2,808.0 110,200.0 $127,176.00 Job Classifications Cost $9,990.00 $29,670.00 $8 ,775.00 $348,000.00 Estimated Labor Cost: I $396,435.oo I multiplier 2.60 2.88 3.13 3.16 3.12 SPM =Senior Project Manager SPS =Senior Project Scientist SCI-Office = Scientist SCI-Field= 2-Person Field Team DIRECT EXPENSES Description of Expense No. $/No. Total MS4 Inventory and Inspection . Mileage 10000 $0.54 $5,400.00 lODE Lab Analysis (Basic- Ammonia, Surfactants, Potassium) 40 $50.00 $2,000.00 Lab Analysis (Full= Basic+ TSS, Oii&Grease, Bacteria, TPH ) 12 $140.75 $1,689.00 Mileaqe 5000 $0.54 $2,700.00 Estimated Direct Expense Cost: lc__-=:$..:..11-"'c:..7=.89:..:·.::.o.:.Jol Total Cost Estimate! S40B.224.ool

ACTION FORM PROCEEDING: Legislative, Finance & Administration Committee DEPARTMENT OF ORIGIN: City Manager's Office DATE SUBMITTED: November 17,2016 PREPARED BY: Scott D. Koenig, P.E., City Manager SUBJECT: North Street Sidewalk Improvements Project; State Contract No. T201320004 REFERENCE: N/A RELATED PROJECT: N/A REVIEWED BY: Scott D. Koenig, P.E., City Manager EXHIBITS: Exhibit #1- Letter Dated November 15, 2016 from DelDOT; Exhibit #2- De!DOT Administered On-Alignment Agreement (State Project No. T201320004) EXPENDITURE REQUIRED: $186,000.00 (EST) AMOUNT BUDGETED: $ 0.00 FUNDING SOURCE (Dept./Page in CIP & Budget): 110-1800-544 (Streets Division Operating Budget) TIME TIMETABLE: See time1ine below. RECOMMENDED ACTION: Staff is requesting authorization from City Council to sign the project· agreement with De!DOT and begin assembling the required funds for the match. The state has requested that all matching funds be transferred to De!DOT no later than February/March 2017. BACKGROUND AND ANALYSIS Several years ago the Downtown Dover Partnership initiated a Transportation Enhancement project request for pedestrian improvements on North Street from Governors Avenue to Queen Street. The project was accepted by DelDOT and the City of Dover was required to act as the municipal sponsor for the work. The project improves the sidewalk, accessibility and street lighting in the corridor and extends the downtown sidewalk and lighting network into an underserved area of the city. The total estimated project cost is $980,000. This project requires and 80/20 match from the sponsoring local government; therefore, the City's match is $186,000. This payment must be received prior to the award of the construction contract. Staff intends to submit Community Transportation Funding requests to areas legislators to offset the city's contribution for the improvement. In addition, there are several general fund projects and equipment purchases that are coming in under budget from which the remaining funds can be transferred to this project to support the required match. De!DOT's project schedule is as follows: Advertise bids February I, 2017 Bids are due March 1, 2017 Award of Contract: April2017 Construction Start: May/June 2017 Construction Complete: September 2017 Staff is requesting authorization from City Council to sign the project agreement with De!DOT and begin assembling the required funds for the match. The state has requested that all matching funds be transferred to De!DOT no later than February/March 2017.

STATE OF DELAWARE DEPARTMENT OF TRANSPORTATION 8 00 BAY ROAD P.O. Box 778 DOV ER, D ELAWARE 19903 J ENNI F'ER COHAN SECRETARY Novem ber 15, 2016 Mr. Scott Koenig C ity of Dover 15 Loockerman Plaza Dover, DE 1990 I Reference: State Contract No. T20 1320004 North Street Sidewalk Improvements, C ity of Dover Invoice# T201320004 Dear Mr. Koenig: T he above referenced project is ready for advertisement. In order to facilitate th is request, the C ity of Dover needs to submit d1eir match contribution of $186,000. The anticipated total project cost is $980,000. It should be noted the total project cost includes $50,000 to be reimbursed to the City of Dover for purchase of light standards (see proj ect agreement). This amount is not included in the total project cost when calculating the sponsor ma tc h. Below is the calculation for the City of Dover's portion: $93 0,000 X 20% = $ 186,000 Total Contribution from City of Dover= $186,000 [tis imperative that the payment is rece ived prior to the awarding of the contract. The Department of Transportation has made some changes regarding our check receipt process. Please make checks payable to The Delaware Department of Transportation. We also request that you reference the State contract num ber T20 1320004 as part o f the invoice and maiI rt to the following address: De laware Department of Transportation Finance Attn: Mequoria Roach P.O. Box 778 Dover, DE l9903 . Please feel free to contact me at (302) 760-2 178 if you have any questions or concerns. ~cerely, ' Jel ;ezgoda Assistant Dlrector, Planning De/DOT

STATE OF DELAW ARE DEPARTM ENT OF 7RANSPORTAnON BOO B AY ROAD P . O . BOX778 D OVER, DELAWARE 19903 J ENNIFER C O HAN SECRETAR Y November 9, 2016 Mr. Scott Koenig City of Dover 15 Loockerman Plaza Dover, DE 1990 1 RE: State Project No. T201320004, F.A.P. No. ETEA-2013(08) North Street Sidewalk Improvements, City of Dover Transportation Alternatives Project Dear Mr. Koenig: This is to serve as a Delaware Department of Transpmiation (DelDOT) Administered On- Alignment Agreement (AGREEMENT) between DelDOT and the City of Dover (SPONSOR) for the referenced PROJECT. This proj ect, hereinafter referred to as the PROJECT, consists of the design, preparation of contract documents and the construction of the North Street Sidewalk Improvements proj ect. The project involves sidewalk improvements along North Street from S. Governors Avenue to S. Queen Street. Improvements to include curb and sidewalk replacement, ADA upgrades, curb ramp improvements, crosswalk improvements, and pedestrian lighting. In accordance with this AGREEMENT, DelDOT shall: A. Provide ftmding for the PROJECT design, construction and construction management not to exceed $794,000.00. This amount is based on an estimated total PROJECT cost of $980,000.00 broken down as follows: Project Development (Design) $ 130,000 Construction Estim ate $ 800,000 Light Standard Reimbursement Cost - $ 50,000 Total Estimated Project Cost $ 980,000 B . Under an open-end agreement, provide consu ltan t serv ices for the preparation of contract plans, specifi cations and estimates (PS&E) that meet OeiDOT requirements. A ll design fees will be inc Iudecl as part of the project budget. ~De/DOT

l~VllU OI.J.I;I;:;L 0~UVWCU.l\. ll.UplUY\JJ,Uf;;lH,:,-J, L.V J..JkVVV"'t November 9, 2016 Page 2of4 C. Advertise, award and administer the construction of the PROJECT, including but not limited to construction engineering, construction inspection, materials testing and certification in accordance with federal and state requirements. D. On behalf of the SPONSOR, using project funds, De lOOT will acquire any right-of-way necessary for the project. E. Apply for and obtain, prior to advertising all permits required by federal, state, and local authorities. F. Prepare and provide written documentation that all environmental and historical studies and documentation required by federal and state authorities have been prepared and approved. G. Coordinate with all utility companies within the project limits to determine conflicts with the proposed construction, required utility adjustments and relocations and obtain a relocation schedule. The approved relocation schedule will be included in the Special Provisions for the PROJECT. Reimbursable utility costs will be included in the PROJECT cost. In accordance with this AGREEMENT, the SPONSOR shall: A. Provide the matching funds that fulfill the matching obligation for the PROJECT in the amount of $186,000.00. This amount is based on an estimated total PROJECT cost of $980,000.00. All funds to cover the PROJECT match responsibility must be in encumbered to the PROJECT prior to advertisement of the PROJECT. B. All additional costs, up to 5% of the bid value of the PROJECT, will be shared by DeiDOT (80%) and the SPONSOR (20%). C. Provide the light standards and fixtures for the PROJECT. The SPONSOR will be responsible for installation of the lights and activation of the system. DeiDOT will reimburse the SPONSOR for the cost of the light fixtures. This amount will not exceed $50,000 unless approved by DelDOT in writing. D. Provide timely review and comment/approval of the PROJECT construction plans, specifications and estimates. E. Donate all SPONSOR owned right-of-way necessary to construct the PROJECT as set forth in the plans and specifications for the PROJECT. By signature of this AGREEMENT, the SPONSOR grants permission to DefDOT and the selected contractor the right to trespass on SPONSOR maintained or owned property iri order to construct improvements as set forth in the plans and specifications for this PROJECT. F. Utilize the funding provided for the PROJECT for the stated purpose only and not be redirected by the SPONSOR for any other purpose. 6oetDOT

North Street Sidewalk Improvements-T201320004 November 9, 2016 Page 3 of4 G. The SPONSOR shall be responsible for the maintenance of the PROJECT upon completion. More specifically, the SPONSOR shall maintain all sidewalks, curb ramps, lighting and landscaping installed as part of this PROJECT. Under this AGREEMENT, the following General Conditions shall apply to the parties: A. Upon completion and acceptance of the PROJECT, less any contract warranty periods by DelDOT, DelDOT will make a final accounting of project costs. The parties will make final settlement hereto within 60 days of written notice of the findings of the final accounting. B. Approved plan revisions and change orders with an individual and cumulative value less than or equal to 5% of the bid value of the PROJECT shall be allowed as a PROJECT cost. Plan revisions and change orders with an individual or cumulative value greater than 5% of the bid value of the PROJECT shall be the sole responsibility of the SPONSOR. De!DOT and the SPONSOR must review and approve all proposed change orders. C. DelDOT, shall cause to have its contractors indemnifY and save harmless itself and SPONSOR from and against all claims, demands and causes of actions of every kind and character arising in favor of the contractors' employees or third party on account of personal injuries or death or damages to property, which may arise otrt of the exercise of this AGREEMENT. D. If the PROJECT is canceled or put on hold at the request of the SPONSOR prior to advertisement of the project, the SPONSOR shall be responsible for reimbursing De!DOT for all funds spent by DelDOT on the PROJECT -up to the point when the PROJECT was halted. For the avoidance of doubt, this requirement for reimbursement includes both funds that (i) have been spent at the time the PROJECT is put on hold or canceled and (ii) any funds that SPONSOR may be required to spend on costs that have been incurred btrt not yet billed to SPONSOR at the time the PROJECT is put on hold or canceled, A De/DOT

North Street Sidewalk Improvernents-T20 1320004 November 9, 2016 Page 4 of4 Please indicate your concunence with these provisions by signing on the appropriate line and retmn the five (5) signed originals to my attention. If you have any questions or concerns, please contact me at (302)760-2112 c\J"VlyiJ ~iezgoda Assistant Director, Planning APPROVED as to Form for DeiDOT: D1 \t ~'e Co(d() IIt) Annie Cordo Date Deputy Attorney General APPROVAL for the SPONSOR: City of Dover Date APPROVAL for DeiDOT: Drew A. Boyce Date Director, Planning ATTEST for DeiDOT: Shante Hastings Date Acting Director, Finance A De/DOT

COMPREHENSIVE ANNUAL FINANCIAL REPORT D R AF T

COMPREHENSIVE ANNUAL FINANCIAL REPORT D For the Fiscal Year Ended June 30,2016 R AF T Prepared by the Finance Department Donna S. Mitchell, Controller/Treasurer

Acknowledgements The City of Dover’s Comprehensive Annual Financial Report was prepared by the Finance Department. Tracey Lisiecki D Financial Reporting & Accounting Manager Lori Peddicord Assistant Finance Director R Jeffrey Dill Accountant II Jennifer Helms AF Accountant II Sharon Daniel Account Clerk II Katie Heffington Payroll Specialist Sophia Isip T Finance – Administrative Assistant Special appreciation is extended to Mr. Scott Koenig, City Manager and all personnel throughout the City for their continued support of the Finance Department.

2016 Comprehensive Annual Financial Report for the City of Dover, Delaware Table of Contents Letter of Transmittal .................................................................................................................. 1 Certificate of Achievement for Excellence in Financial Reporting ......................................... 7 D Mayor and Council Members ................................................................................................... 8 List of Elected Officials .............................................................................................................. 9 List of Appointed Officials ........................................................................................................ 10 List of Commissions & Committees ........................................................................................ 11 Organization Chart ................................................................................................................... 12 The City of Dover, Delaware Vision .......................................................................................... 13 R PART A - Report of Independent Public Accountants ....................................................... 18 PART B - Management’s Discussion and Analysis ............................................................ 23 PART C - Basic Financial Statements ................................................................................... 37 AF Government-wide Financial Statements Statement of Net Position ......................................................................................................... 39 Statement of Activities .............................................................................................................. 40 Fund Financial Statements Balance Sheet - Governmental Funds ..................................................................................... 41 Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position ................................................................................................................................ 42 Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds .......................................................................................................................................... 43 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund T Balances of Governmental Funds to the Statement of Activities ......................................... 44 Statement of Net Position-Proprietary Funds ........................................................................ 45 Statement of Revenues, Expenses and Changes in Fund Net Position-Proprietary Funds ..................................................................................................................................................... 46 i For electronic viewing, please click on a topic or page number.

2016 Comprehensive Annual Financial Report for the City of Dover, Delaware Table of Contents Statement of Cash Flows-Proprietary Funds .......................................................................... 47 Statement of Net Position Fiduciary Funds............................................................................. 48 Statement of Changes in Net Position Fiduciary Funds......................................................... 49 Notes to Financial Statements Index to Notes to Financial Statements .................................................................................. 51 Notes to Financial Statements ................................................................................................. 53 Part D - Required Supplementary Information General Fund-Schedule of Revenues, Expenditures and Changes in Fund Balances – D Budget and Actual ..................................................................................................................... 106 Notes to Required Supplementary Information 1. Governmental Budgets ......................................................................................................... 108 2. Pension Plans ......................................................................................................................... 108 A. Police Pension Fund ........................................................................................................ 108 R B. General Employee Pension Fund ................................................................................... 111 3. Other Post-Employment Plan ............................................................................................... 114 Part E - Supplementary Information General Fund Combining Statements ................................................................................. 118 AF Combining General Fund Balance Sheet................................................................................. 119 Combining Schedule of Revenues, Expenditures and Changes in Fund Balances of the General Fund.............................................................................................................................. 120 Governmental Capital Projects Fund – Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual ....................................................................................... 121 Special Revenue Funds ........................................................................................................... 122 Special Revenue Funds - Combining Balance Sheet .............................................................. 124 Special Revenue Funds - Combining Statement of Revenues, Expenditures and Changes in Unreserved Fund Balances................................................................................................... 125 Police Grants - Schedule of Revenues, Expenditures and Changes in Unreserved Fund T Balance Budget (Non-GAAP Basis) and Actual........................................................................ 126 Library Grants - Schedule of Revenues, Expenditures and Changes in Unreserved Fund Balance - Budget (Non-GAAP Basis) and Actual ..................................................................... 127 Municipal Street Aid Fund - Schedule of Revenues, Expenditures and Changes in Unreserved Fund Balance - Budget (Non-GAAP Basis) and Actual ....................................... 128 ii For electronic viewing, please click on a topic or page number.

2016 Comprehensive Annual Financial Report for the City of Dover, Delaware Table of Contents Housing Programs – CDBG & NSP – Schedule of Revenues, Expenditures and Changes in Unreserved Fund Balance – Budget (Non-GAAP Basis) and Actual .................................. 129 State of Delaware Department of Transportation Grants - Schedule of Revenues, Expenditures and Changes in Unreserved Fund Balance – Budget (Non-GAAP Basis) and Actual ................................................................................................................................... 130 Proprietary Fund Types - Enterprise Funds ....................................................................... 131 Water/Wastewater Fund - Schedule of Revenues and Expenses-Budget (Non-GAAP Basis) and Actual ................................................................................................... 132 Water/Wastewater Improvement & Extension Fund-Schedule of Revenues and D Expenses-Budget (Non-GAAP Budget) and Actual ................................................................. 133 Electric Revenue Fund - Schedule of Revenues and Expenses - Budget (Non-GAAP Basis) and Actual ................................................................................................................................... 134 Electric Improvement & Extension Fund Schedule of Revenues and Expenses – Budget (Non-GAAP Basis) and Actual ................................................................................................... 135 R Proprietary Fund Types - Internal Service Funds ............................................................. 136 Worker’s Compensation - Schedule of Revenues and Expenses Budget (Non-GAAP Basis) and Actual ................................................................................................... 137 Fiduciary Fund Types and Agencies ..................................................................................... 138 All Agency Funds - Combining Statement of Changes in Assets and Liabilities .................. 139 AF Statistical Section..........................................................................................................................142 Net Position by Component ...................................................................................................... 144 Changes in Net Position ............................................................................................................ 145 Fund Balances of Governmental Funds ................................................................................... 147 Changes in Fund Balances of Governmental Funds ............................................................... 148 Governmental Activities Tax Revenues by Source ................................................................. 150 Assessed and Estimated Actual Value of Taxable Property .................................................. 151 Property Tax Rates - All Direct and Overlapping Governments with the Capital School T District ......................................................................................................................................... 152 Principal Tax Payers ................................................................................................................... 153 Property Tax Levies and Collections ........................................................................................ 154 Ratios of Outstanding Debt by Type ........................................................................................ 155 iii For electronic viewing, please click on a topic or page number.

2016 Comprehensive Annual Financial Report for the City of Dover, Delaware Table of Contents Ratio of Net General Obligation Bonded Debt to Assessed Value & Net Bonded Debt Per Capita ................................................................................................................................... 156 Ratio of Annual Debt Service Expenditures for General Bonded Debt to Total General Expenditures .............................................................................................................................. 157 Computation of Direct and Overlapping Debt with the Capital School District ................... 158 Computation of Legal Debt Margin .......................................................................................... 159 Revenue Bond Coverage - Electric Revenue Bonds ................................................................ 160 Revenue Bond Coverage - Water/Wastewater Bonds ............................................................ 161 Top Ten Water/Wastewater Utility Customers ........................................................................ 162 D Top Ten Electric Utility Customers............................................................................................ 163 Demographic and Economic Statistics ..................................................................................... 164 Major Employers ........................................................................................................................ 165 Full-time Equivalent City Government Employees by Function ............................................. 166 Operating Indicators and Capital Assets Used in Operations Schedule of Insurance ......... 167 R Summary of Insurance .............................................................................................................. 169 AF T September 26, 2015 - Government officials and scientists watch a laser cut the ribbon to symbolize the completion of the Optical Science Center for Applied Research at Delaware State University. Credit photo: delawarebusinessnow.com, Doug Rainey iv For electronic viewing, please click on a topic or page number.

D R THIS SECTION INCLUDES THE FOLLOWING: AF LETTER OF TRANSMITTAL CERTIFICATE OF ACHIEVEMENT FOR EXCELLENCE IN FINANCIAL REPORTING LIST OF ELECTED OFFICIALS LIST OF APPOINTED OFFICIALS T LIST OF COMMISSIONS & COMMITTEES ORGANIZATION CHART VISION

D R AF Vice President Joe Biden addressed DSU graduates May 2016, despite the rain. The University is also celebrating its 125th anniversary. Credit photo: Ms. B: The Good News, msbeecusd.blogspot.com T

2016 Comprehensive Annual Financial Report for the City of Dover, Delaware Introductory Section December 16, 2016 The Honorable Mayor, Honorable Council President, DMembers of the City Council and Citizens of the City of Dover Dover, Delaware 19901 Ladies and Gentlemen: I am pleased to submit the Comprehensive Annual Financial Report of the City of Dover for the fiscal year ended June 30, 2016. This report is published to comply with the provisions of Article IV, Section R 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. AF The financial statements in this report have been audited by SB & Company, LLC, an independent firm of certified public accountants as required by Section 46 of the City Charter. SB & Company, LLC has provided an unmodified opinion on the City of Dover financial statements for the year ended June 30, 2016. The independent public accountant’s report 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 T 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 located 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. P.O. Box 475 Dover, DE 19903-0475 Community Excellence Through Quality Service

2016 Comprehensive Annual Financial Report for the City of Dover, Delaware Introductory Section The City currently occupies a land area of 23.74 square miles and serves a population of approximately 37,453. 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 and sanitation 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. D 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 several pieces of firefighting apparatus. These payments are grouped under the Fire Department and are included in the General Fund. R The Fire Chief is elected by the volunteer members of the Fire Company. The City Council traditionally adopts the election and the City Council officially appoints the Fire Chief for a one-year term. Therefore, the position of Fire Chief 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 AF 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, with the exception of 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 The City of Dover is distinguished as the dominant center of employment, commerce, educational opportunity, and cultural activity in central Delaware. Economic growth finally appears to be improving in Dover, as evidenced by the increased building permit activity and value of construction during the fiscal year. While still below the level of growth prior to the recession, Dover is experiencing a consistent level of investment that reflects economic growth within the capital. T Residential growth has improved modestly, and major institutions and government agencies continue to expand to meet the demands of a growing regional population and economy. Commercial corridor areas of U.S. Routes 13 and 113 and DE Route 8 have continued to be the center of commerce in Dover, and in the past year progress has been made in expanding commercial services in this area, particularly along the U.S. Route 13 corridor. Efforts to revitalize the traditional urban core of downtown Dover have continued and gained a new breath of life with the designation of Dover’s Downtown Development District by Governor Jack Markell on January 11, 2015. Dover was one of three districts designated statewide, where development projects are eligible for a rebate of up to 20 percent of construction costs. These rebates, combined with other incentives offered by the City of Dover, Kent County, State of Delaware, and the Downtown Dover Partnership have generated a new interest on the part of the 2

2016 Comprehensive Annual Financial Report for the City of Dover, Delaware Introductory Section development community in the downtown that we expect to see translate to new development activity over the next couple of years. Total value of construction was estimated at $80.2 million during Fiscal Year 2016. This represents a decrease of $29.5 million in construction value from the prior fiscal year. The City of Dover issued 2,541 business licenses in Fiscal Year 2016. Building permits issued during this period totaled 2,251 which is an increase of 501 permits over the previous year. The City of Dover Planning Office processed 24 new development applications (site plans, subdivisions and conditional uses) and six rezoning applications during the reporting period, which is consistent with the prior fiscal year. Growth and development trends during Fiscal Year 2016 are further discussed and summarized below: POPULATION GROWTH D The 2010 U.S. Decennial Census, which was conducted in April 2010, found that 36,054 people reside in Dover. The Delaware Population Consortium estimates, the City of Dover’s population as of July 1, 2016 was 37,453. This change represents a 3.9% population increase over the decennial Census. RESIDENTIAL DEVELOPMENT A total of 74 new residential housing starts were recorded during Fiscal Year 2016, which represents an increase of sixteen from the prior fiscal year. Construction activity continued in Nottingham Meadows, Senators Lake, Clearview Meadows, the Village of Westover, and the Village of Cannon Mills. New R residential construction also started moving forward in the downtown area, with four new Habitat for Humanity homes under construction during the fiscal year. The apartment market continued to be strong in Fiscal Year 2016, with construction at Leander Lakes and the Village at McKee Branch. Land plans are also underway for additional apartments at Blue Hen Apartments and apartments at Eden Hill Farm. DOWNTOWN DOVER REDEVELOPMENT AF The Restoring Central Dover Steering Committee, led by NCALL, was very active with implementation of the Restoring Central Dover Plan. The Plan, published in October 2014, led to a 5-year, $750,000 grant for plan implementation from the Wells Fargo Regional Foundation. While the implementation is led by NCALL, the City of Dover is an active partner in the plan implementation. The construction of new homes by Central Delaware Habitat for Humanity relates to the plan implementation, as does a project to upgrade street lighting on South New Street. Two neighborhood watch organizations were formed under the umbrella of Restoring Central Dover to improve the communication among residents, the City of Dover, and other stakeholders as it relates to keeping the community safe. Staff continued to work with the Downtown Dover Partnership and others to implement the City’s Downtown Development District program. This has resulted in new businesses and new energy in the downtown area. Several projects are in their infancy but will be developed in the near future. The City of Dover and the Dover/Kent County Metropolitan Planning Organization held a community T planning week to develop concepts for land use, streetscape, travel lanes and parking on Route 8 and Forest Street through downtown. The result of this is a plan that will help guide the City of Dover and DelDOT as the Route 8 corridor redevelops overtime. RETAIL/COMMERCIAL DEVELOPMENT Construction in the retail sector improved during Fiscal Year 2016, particularly on the DuPont Highway corridor. Renovations continued on the former Walmart site, Dover Town Center, and several of the tenant’s spaces have opened with the remaining tenants planning to open during Fiscal Year 2017. Renovations began on the old Lone Star Steak House to convert it to Mission Barbeque. The former Kmart location underwent renovations to be the new home of Burlington Coat Factory and Big Lots. 3

2016 Comprehensive Annual Financial Report for the City of Dover, Delaware Introductory Section INDUSTRIAL DEVELOPMENT The Dover economy derives considerable benefits from a variety of large industrial and manufacturing companies including Kraft Foods, Procter and Gamble, Edgewell (formerly Energizer/Playtex Family Products), and Berry Van Lines, as well as numerous small- to mid-sized industrial entities. During the fiscal year, infrastructure was completed at the Garrison Oak Technology Park, and two of the park tenants opened: Uzin Utz and Garrison Energy Center. Edgewell began major renovations to transfer product lines from Canada to the Dover location. Kraft also began renovations to transfer the bakery for Stove Top production to the Dover plant. INFRASTRUCTURE The City has several large water and sewer projects underway to upgrade pump stations, distribution and transmission mains. These projects will improve water quality and reduce the inflow/infiltration in our D sewer system. The City continues to upgrade the electric transmission and distribution system with systematic upgrades to substations and the transfer of overhead distribution lines to underground lines in the electric territory subdivisions. The City and the State has several transportation projects underway, including the construction of the West Dover Connector, which will alleviate some of the traffic going through the downtown area. Summary While Dover continues to be affected by the nation’s economic downturn, fiscal year 2016 saw R meaningful growth in the state capital. Dover remains a center for commerce, as evidenced by the retail expansions seen during Fiscal year 2016, as well as services and residential communities. As the economy rebounds, Dover is well positioned to support continued growth, and the investment associated with the State’s Downtown Development District program creates an optimistic future for the City of Dover. LONG-TERM FINANCIAL PLANNING AND MAJOR INITIATIVES AF The City completed the infrastructure build out of the Garrison Oak Technology Park “GOTP” which will service as a technology and industrial park. The design of the GOTP subdivision includes fifteen parcels of which two are leased and two were sold this past year to Uzin Utz a German manufacturer of flooring compounds and Advantech a provider of security systems. The Dover Sun Park has occupied one of the parcels since 2010 and the Calpine 305 megawatt electric generating station was completed in May 2016. The City Council continues its focus on replacing or upgrading old infrastructure in order to improve the quality and reliability of our utility systems. In fiscal year 2016, $1.9 million of water and wastewater capital improvements were completed. This included the completion of the Route 13 water main three pump station upgrades, and two well head replacements. The electric utility completed capital improvements of $3.2 million in fiscal year 2016. The major T initiatives completed by our Transmission and Distribution crews were the completion of substation upgrades to the McKee Run and Lebanon stations, system upgrades to capacitors, lighting, and upgrades to 69kv switches. Several new services were also completed. The City’s plant operator, North American Energy Services, completed the replacement of the industrial water wastewater system at the McKee Run generating plant. The Unit 3 turbine inspection was completed. 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 service and revenue losses. The fiscal year 2015/2016 Capital Investment Plan includes $1.7 million for vehicles and equipment and $13.5 million of infrastructure and utility improvement projects. The Capital Investment Plan is presented 4

2016 Comprehensive Annual Financial Report for the City of Dover, Delaware Introductory Section to City Council each year during the budget workshops and the final plan is approved by City Council along with the annual budget. FINANCIAL POLICIES AND FINANCIAL PLANNING Unassigned fund balances in the General Fund (11.7%) fall within the policy guidelines of a minimum of 8% and maximum of 12% of budgetary revenues as approved by City Council in the City of Dover Financial policies. The water, wastewater, and electric utilities have the same policy requirement for their budget balances. If the balances fall below 8%, the City Manager is required to submit budgets to bring the balances up to minimum within three years. The current budget balances as of June 30, 2016 for the utilities are water (13.1%) and wastewater (6.4%). The water and wastewater utilities are accounted for in the same fund and have a combined budget balance of 9.1%. The electric utility ended the year with a D budget balance less than the 8.0% at 7.6%. This was attributed to higher than projected power supply and generation cost attributed to the unusual cold weather in January and February. The fiscal year 2016 budget will be adjusted to address the shortfall. The City policies also require non-recurring revenues to be set aside for capital improvements as designated by City Council (reserve accounts) and a 2% contingency reserve in the General Fund, Water/Wastewater Fund and 1% contingency in the Electric Revenue Fund to address unforeseeable natural disasters and insurance losses. All major funds meet the contingency reserve requirement. R 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 AF this reserve is to enable the City to absorb month-to-month power supply cost increases while adjusting budgets and implementing potential rate increases. If the cost of power supply decreases, the reserve can also be used to provide a power cost adjustment decrease to maintain competitive rates. The goal is to maintain a reserve balance equivalent to 10% of the power supply cost. 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 comprehensive annual financial report (CAFR) for the fiscal year ended June 30, 2015. This was the thirty-first (31) consecutive year that the City of Dover has achieved this prestigious award. In order to be awarded a Certificate of Achievement, a government unit must publish an easily readable and efficiently organized comprehensive annual financial report. The report must satisfy both generally accepted accounting principles and applicable legal requirements. T A Certificate of Achievement is valid for a period of one year only. We believe that our current comprehensive annual 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. 5

2016 Comprehensive Annual Financial Report for the City of Dover, Delaware Introductory Section 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 Mrs. Ann Marie Townshend, City Planner for her assistance with the preparation of the local economy section and Ms. Hollie Ford for her support in the preparation of the annual report. Special appreciation is extended to the employees of the Finance Department, whose pride and dedicated service continues to make this report and each year a success. Respectfully submitted, Donna S. Mitchell, CPA D Controller/Treasurer R AF T 6

2016 Comprehensive Annual Financial Report for the City of Dover, Delaware Introductory Section Government Finance Officers Association D Certificate of Achievement for Excellence in Financial R Reporting Presented to City of Dover AF Delawai~e Fords Comprehensive Annual Financial Report for the Fiscal Year Ended June 30, 2015 Executi!ire DirectoriCEO T 7

2016 Comprehensive Annual Financial Report for the City of Dover, Delaware Introductory Section D R AF T Councilman at Large Timothy A. Slavin, First District: James E. Hosfelt and James L. Hutchison Second District: William F. Hare and Brian E. Lewis. Third District: Scott W. Cole and Fred A. Neil Fourth District: David L. Anderson and Roy Sudler 8

2016 Comprehensive Annual Financial Report for the City of Dover, Delaware Introductory Section Length of Term Service Expires Mayor Robin R. Christiansen 2 Years May 2019 City Council D At-Large * Timothy A. Slavin First District James E. Hosfelt, Jr. James L. Hutchison, Sr. 3 Years 1 Year 5 Years May 2017 May 2019 May 2017 R Second District William F. Hare Brian E. Lewis Third District Scott W. Cole 5 Years 1 Year 1 Year May 2017 May 2019 May 2019 AF Fred A. Neil 1 Year May 2017 Fourth District David L. Anderson 5 Years May 2017 Roy Sudler, Jr. 1 Year May 2019 * Council President Note: length of service does not reflect previous, non-consecutive service, or interim appointment prior to permanent appointment T 9

2016 Comprehensive Annual Financial Report for the City of Dover, Delaware Introductory Section Length of Length of Time Time in with Position the City City Clerk/Assistant Treasurer - Traci A. McDowell 10 Years 28 Years DCity Manager/Civil Defense Director - Scott D. Koenig City Solicitor - Nicholas H. Rodriguez Deputy City Solicitor - William W. Pepper 5 Years 48 Years 26 Years 26 Years 48 Years 26 Years R Council President - Timothy A. Slavin City Assessor - Cheryl A. Bundek City Building Inspector - Ann Marie Townshend City Planner - Ann Marie Townshend 1 Year 7 Years 4 Years 10 Years 3 Years 24 Years 10 Years 10 Years AF Controller/Treasurer - Donna S. Mitchell 15 Years 15 Years Fire Chief - Carleton Carey, Jr. 6 Months - Interim Fire Marshal - Jason A. Osika 2 Months 14 Years Police Chief - Paul M. Bernat 2 Years 26 Years Note: length of service does not reflect previous, non-consecutive service, or interim appointment prior to permanent appointment T 10

2016 Comprehensive Annual Financial Report for the City of Dover, Delaware Introductory Section Awards Committee Election Board Planning Commission Peggy Angel At-Large: William T. Garfinkel, Chair At-Large: Dr. Bobby Jones Ronald R. Gough First District: Anita L. McDowell Boyer First District: Kathleen Welsh, Vice Chair Georgia Van Sant Second District: Cherrita L. Matthews First District: Col. Robert D. Welsh Third District: Curtis E. Raymond Second District: Thomas Holt Board of Adjustment Fourth District: M. Milford Caldwell Second District: Andrea Maucher K.C. Sheth, Chair Traci A. McDowell, City Clerk (Liaison Member) Third District: Dean Holden Arthur G. Ericson, Vice Chair Third District: Fred Tolbert, Chair William A. Hufnal Ethics Commission Fourth District: John H. Baldwin, Sr. James N. Keller Thomas C. Jackson, Chair Fourth District: Kenneth Roach Richard D. Senato Robin F. Case Gary Coy Police Pension Plan - Retirement Committee Board of Assessment Appeals Andrew S. Moreland 1 Year Thomas Burns, Real Estate Brokerage of Sales Nancy J. Shevock Councilman Brian E. Lewis James Galvin, Undesignated City Manager, Scott D. Koenig William Garfinkel, Undesignated General Employee Pension Plan Board of Trustees Chief of Police, Paul M. Bernat John Kelly, Accounting Councilman David L. Anderson (Ret. Captain) John Sigler, Chair Todd Stonesifer, Real Estate Brokerage of Sales Councilman Brian E. Lewis (Ret. Lt.) Timothy Mullaney, Sr. D James Welsh, Property Appraisal/Assessments Compensation Commission Vacancy Vacancy Vacancy James Brockton Clarence (Bud) Wagner II Controller/Treasurer, Donna S. Mitchell Human Resources Director, Kimberly Hawkins Note: length of service does not reflect previous, non-consecutive service, or interim appointment prior to permanent appointment Dover Fourth of July Celebration Committee Greg Patterson, President/Vice Chair Mayor Robin R. Christiansen, Chair City Manager, Scott D. Koenig Controller/Treasurer, Donna S. Mitchell Lester L. Blakeman, Sr. Kristen Mullaney Teresa Tieman, Chair Greater Dover Arts Council Chevis Anderson, Chair Sydney Arntz N. Taylor Collins Caroline Greene Cheryl Scheir Cynthia Witt Sarah Zimmerman Historic District Commission Charles A. Salkin (Chair), Professional (Ret. Cpl.) Martin Stallings Property Maintenance Code Board of Appeals City Manager, Scott D. Koenig Adam M. Perza, Representative of Homeowners Charles Martin, Representative of Local Real Estate Industry Association Public Advisory Committee of the Dover/Kent County MPO Dr. Carlton L. Cannon, Jr. Jonathan Contant John S. Grady Councilman Brian E. Lewis Dana Shelton Thomas J. Keller, Jr. Ann Marie Townshend Susan Betts Gail Nemcic Karen Nickerson Sarah Zimmerman Dover Housing Authority Mark Harmon Enrico LePore Cherritta L. Matthews Audrey Daniels Phillip McGinnis Sandra Mifflin-Taylor R Andrea Maucher, Vice-President Jennifer Helms, Treasurer/Secretary Ami Sebastian-Hauer, Executive Director Joseph McDaniel (Vice Chair) Business Rep./Resident Ann Baker Horsey, Professional/Resident C. Terry Jackson, Professional/Resident Richard Scrafford, Professional Human Relations Commission At-Large: Lynne Sadusky First District: Vacancy First District: Vacancy Second District: Dianne Bogle Second District: Theodore Henderson, Chair Third District: James McGiffin Third District: Wanda Mullen Fourth District: Vacancy Fourth District: Vacancy Kent County Tourism Board of Directors Silver Lake Commission Dean Holden, Chair Nicholas Adams Tricia Arndt James Burcham Zachery Carter Lyle Allen Jones Ann Marie Townshend St. Jones Greenway Commission James Burcham Michael P. Mercer City Parks and Recreation Director, Ann Marie Townshend Technical Advisory Committee of the Dover/Kent County MPO Public Works Director, Sharon Duca Director of Planning and Community Development, Ann Marie Townshend AF Dover Public Library Advisory Commission Councilman Fred A. Neil Councilman Scott W. Cole Utility Committee Zachery Carter Kent Economic Partnership Board of Directors Councilman Scott W. Cole, Chair Lois J. Dunning Councilman David L. Anderson Councilman James L. Hutchison, Sr. Gertrude Jackson Councilman Fred A. Neil Beth Petit De Mange Legislative, Finance and Administration Committee Lester L. Blakeman, Sr. Jill B. Street Councilman William F. Hare, Chair Tricia Arndt Councilman Scott W. Cole Dover/Kent County MPO Council Councilman Roy Sudler, Jr. Mayor Robin R. Christiansen Courtney Stewart Daniel T. Shevock Downtown Dover Partnership Board of Directors Gregory V. Moore (President) Other Post-Employment Benefits (OPEB) Board City Manager, Scott D. Koenig Councilman Scott W. Cole City Planner, Ann Marie Townshend Councilman James E. Hosfelt, Jr. Councilman David L. Anderson City Manager, Scott D. Koenig Councilman William F. Hare Controller/Treasurer, Donna Mitchell Council Representative - Vacancy Human Resources Director, Kimberly Hawkins Mayor Robin R. Christiansen State of Delaware Representative - Vacancy Parks, Recreation and Community Enhancement Diane Laird, Office of Economic Development Councilman Roy Sudler, Jr., Chair Timothy A. Slavin, Office of the Secretary of State Councilman David L. Anderson Brian Bushweller, State Senator - 17th District Councilman James E. Hosfelt, Jr. Sean M. Lynn, State Representative - 31st District M. Milford Caldwell, Jr. Anita Evans Ann Baker Horsey Lucy Findlay Michael Harrington Maxine Lewis Mitch May Todd Stonesifer John Tinsley Wendie Vestfall Chief Executive Officer of Bayhealth Foundation, Paul Lakeman President of Wesley College, Robert E. Clark, II T 11

2016 Comprehensive Annual Financial Report for the City of Dover, Delaware Introductory Section C ITI ZE N S O F DOVER MAYOR & C OUN C IL D MAYOR POLI CE C OUN C IL C ITY M A NAG ER R C ITY C LER I< FINA N C E ~Procurement & Inventory FIRE I' LANNING & C OMMUNITY ENIIAN CEMENT SERVI C ES Life Safety Code Enforcement Inspections/Permitting Planning TA X A SS ESSO R AF Community Development PARKS & LIBRARY CUSTOMER SERVI CES REC REATI O N c= Meter Reading PUBLI C WORKS HUM A N RES OURC ES Public Works Administration Engineering & Inspections l N FO RMAT ION Grounds T EC HN OLOGY Sanitation Streets Facilities Management Fleet Maintenance EL ECTRI C Water/Wastewater Engineering Water Management Electric Administration ORG ANI ZATION C HART System Operations Wastewater Management Water Treatment Electric Engineering Electric Transmission & Distribution EC O N OMI C D EVE LOPMENT 12 T JUNE 30. 2016 •

2016 Comprehensive Annual Financial Report for the City of Dover, Delaware Introductory Section DThe 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 R future of balanced growth and opportunity where all citizens are heard, enjoy a high quality of life, and diversity is valued. AF T II 13

D R AF The 200+ year old building stands tall in Dover on a nice, blue day Credit Photo: cityofdover.com T 14

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D R AF Governor Markell greets legislators before delivering the State of the State Address, January 2016 Credit Photo: Dover Post, Andre Lamar T

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2016 Comprehensive Annual Financial Report for the City of Dover, Delaware Financial Section – Report of Independent Public Accountants – Part A D R AF T 18

2016 Comprehensive Annual Financial Report for the City of Dover, Delaware Financial Section – Report of Independent Public Accountants – Part A D R AF T 19

2016 Comprehensive Annual Financial Report for the City of Dover, Delaware Financial Section – Report of Independent Public Accountants – Part A D R AF T 20

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Stephanie Harrison, Miss Delmarva Veteran, stretches before the race. Harrison served in the U.S. Air Force as an air traffic controller and personnel specialist. Credit photo: Dover Post, Jeff Brown D R Dedication of the Memorial on Veterans Day 2015, at the Kent County Veterans Park in Dover. Credit photo: Dover Post, Jeff Brown AF T 22

2016 Comprehensive Annual Financial Report for the City of Dover, Delaware Financial Section – Management’s Discussion & Analysis - Part B The City of Dover Management’s Discussion and Analysis For the Year Ended June 30, 2016 The City of Dover management offers readers of the City of Dover financial statements this narrative overview and analysis of the financial activities of the City of Dover for the fiscal year ended June 30, 2016. Readers are encouraged to consider the information included in Management’s Discussion and Analysis along with additional information that we have presented in our letter of transmittal, which can be found on pages 1-6 of this report. D Financial Highlights Total assets of the City exceeded its liabilities by $207.3 million (net position). Of this amount, $4.7 million was reported as “unrestricted net position” which represents the amount available to meet the City’s ongoing obligations to citizens and creditors. The general government reported a deficit of $22.2 million and the business type activities, Water/Wastewater and Electric funds, reported $26.9 million of positive unrestricted net position. The difference R between the unrestricted amounts and the total net position is $202.6 million, $37.9 million is restricted primarily for debt and capital construction purposes and $164.7 million is net investment in capital assets.  The governmental activities experienced an increase of $2.6 million invested in capital assets, an increase in restricted net assets of $0.4 million, and an increase of $5.7 million in unrestricted net position. The current year positive change in net position is attributed to a transfer of Net Pension Liability between the Governmental activities AF and the Business-Type activities of $5.4 million. This transfer is a result of incorporating into the allocation methodology, the prorated share of the Net Pension Liability attributed to the related interfund service personnel. The remaining increase in Net Position is a result of higher revenues.  The business-type activities experienced a $2.0 million increase in investments in capital assets. An increase in restricted net position of $0.3 million as well as an increase in unrestricted net position of $5.2 million, resulting in a positive change in net position of $7.5 million. The electric utility experienced a significant savings in power supply and operating cost of $7.0 million. The transfer of the net pension liability of $5.4 million as explained in the governmental activities offset the positive change attributed to lower power supply cost and resulted in a $0.2 million increase in change in net position. 23 T

2016 Comprehensive Annual Financial Report for the City of Dover, Delaware Financial Section – Management’s Discussion & Analysis - Part B Overview of the Financial Statements This Comprehensive Annual Financial Report (CAFR) consists primarily of three required parts - management’s discussion and analysis (this section), the basic financial statements and required supplementary information. The CAFR also includes optional supplementary information that provides summary information and detail, and a statistical section. The basic financial statements are of two kinds that present different views of the City:  The first two statements are government-wide financial statements (pages 41-42) that provide both long-term and short-term information about the City’s overall D  financial status. The remaining statements (pages 43-51) are fund financial statements that focus on individual parts of the City government, reporting the City’s operations in more detail than the government-wide statements. - The governmental fund statements (pages 43-46) tell how general government R - 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 f und st atem ents ( pages 47- 49) of f er shor t and long -term f inancial information about the activities the government operates like businesses, which for the City of Dover are the Electric Revenue and Water/Wastewater Funds. AF - The Fiduciary fund statements (pages 50-51) provide information about the financial relationships in which the City acts solely as a trustee or agent for the benefit of others, to whom the resources belong. The City is the trustee, or fiduciary, for its Employee Pension plans and Other Postemployment Benefits plan and acts in an agency capacity for the Dover Downtown Partnership and Fourth of July Celebration Committee, none of which are considered to be component units of the City. All of 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 insuring that the assets reported in these funds are used for their intended purposes. The financial statements also include notes (pages 53-106) that explain some of the information in the financial statements and provide more detailed data. The statements are followed by T a section of required supplementary information (pages 109-118) 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 121 through 142. The following page 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: 24

2016 Comprehensive Annual Financial Report for the City of Dover, Delaware Financial Section – Management’s Discussion & Analysis - Part B 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 similar to the City is the (except fiduciary proprietary or private businesses, trustee or agent for funds) fiduciary, such as such as electric, someone else’s public safety and water and wastewater resources public works funds D Required financial statements   Statement of net position Statement of activities   Balance sheet Statement of revenues, expenditures, and changes in fund balances   Statement of net position Statement of revenues, expenses and changes in net position   Statement of fiduciary net position Statement of changes in fiduciary net position R Accounting basis and measurement focus Accrual accounting and economic resources focus Modified accrual accounting and current financial resources focus  Statement of cash flows Accrual accounting and economic resources focus Accrual accounting and economic resources focus AF Type of All assets and Only assets expected All assets and All assets and asset/liability liabilities, both to be used up and liabilities, both liabilities, both information financial and liabilities that come financial and capital, short-term and capital, and short- due during the year and short-term and long-term term and long-term or soon thereafter; no long-term capital assets 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 paid expenditures when goods or services have been received and payment is due during the year or soon thereafter 25 T received or paid received or paid

2016 Comprehensive Annual Financial Report for the City of Dover, Delaware Financial Section – Management’s Discussion & Analysis - Part B 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 of 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 D 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.  R 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. Fund Financial Statements The fund financial statements provide more detailed information about the City’s most AF 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 particular purposes. Some funds are required by State law and by covenants. The City Council may also establish other funds to control and manage money for particular 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 in the near future to finance the City’s programs. Since this information does not encompass the additional long-term focus of the government-wide statements, we - - T provide additional information on a separate page, 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. 26

2016 Comprehensive Annual Financial Report for the City of Dover, Delaware Financial Section – Management’s Discussion & Analysis - Part B  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 two enterprise funds are both considered major funds under the requirements of GASB Statement No. 34. D  Fiduciary Funds – The City is responsible for assets that because of a trust arrangement can be used only for the trust beneficiaries. The City is responsible for ensuring that the assets reported in these funds are used for their intended purposes. All of the City’s fiduciary activities are reported in a separate statement of fiduciary net assets and a statement of changes in fiduciary net assets. We exclude these activities from the City’s government-wide financial statements because the City cannot use these assets to finance its operation. R 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. AF The Net Position, of the City of Dover, as of June 30, 2015 and 2016 are as follows (presented in millions of dollars): Governmental Business-Type Activities Activities Total 2015 2016 2015 2016 2015 2016 Assets Non-Capital Assets $ 16.4 $ 14.8 $ 81.0 $ 86.9 $ 97.4 $ 101.7 Capital Assets 58.8 60.9 140.7 141.3 199.5 202.2 Total Assets 75.2 75.7 221.7 228.2 296.9 303.9 Deferred Outflow of Resources 2.7 3.2 1.2 1.4 3.9 4.6 Liabilities Current Liabilities 3.8 2.8 12.1 8.9 15.9 11.7 Non-Current Liabilities Total Liabilities Deferred Inflow of Resources Net Position Net investment in Capital Assets Restricted Unrestricted Total Net Position $ 48.2 52.0 1.8 51.5 0.5 (27.9) 24.1 $ 32.8 42.2 45.0 54.1 0.9 (22.2) 27 1.1 108.6 36.7 T 43.7 55.8 21.7 $ 167.0 0.1 46.0 54.9 0.2 110.6 37.0 26.9 $ 174.5 91.9 107.8 160.1 37.2 1.9 (6.2) 164.7 37.9 4.7 $ 191.1 $ 207.3 88.2 99.9 1.3

2016 Comprehensive Annual Financial Report for the City of Dover, Delaware Financial Section – Management’s Discussion & Analysis - Part B The Changes in Net Position, for the City of Dover, as of June 30, 2015 and 2016 are as follows (presented in millions of dollars): Governmental Business-Type Activities Activities Total 2015 2016 2015 2016 2015 2016 Revenues: Program Revenues Charges for Services $ 9.9 $ 10.5 $ - $ - $ 9.9 $ 10.5 Water/Wastewater Charges for Services - - 14.9 15.0 14.9 15.0 Electric Charges for Services - - 79.8 80.7 79.8 80.7 Operating Grants and Contributions 2.3 2.7 - - 2.3 2.7 D Capital Grants and Contributions General Revenues Property Taxes Transfer Taxes Earnings on Investments-Other Total Revenues Expenses 0.2 11.2 1.7 0.1 25.4 0.7 12.8 2.2 0.3 29.2 1.5 - - 0.5 96.7 - - - 0.8 96.5 1.7 11.2 1.7 0.6 122.1 0.7 12.8 2.2 1.1 125.7 RGeneral Government Public Safety Public Works Library and Recreation Community and Economic Development Central Services Financial Administration Interest Charges Plus (less) Indirect Expense Allocation 4.2 21.3 4.5 3.1 0.6 1.4 3.4 0.2 (4.8) 5.7 20.2 8.1 2.2 0.7 1.5 3.4 0.1 (5.1) - - - - - - - - 4.8 - - - - - - - - 5.1 4.2 21.3 4.5 3.1 0.6 1.4 3.4 0.2 - 5.7 20.2 8.1 2.2 0.7 1.5 3.4 0.1 - AF Water/Wastewater - - 10.0 10.5 10.0 10.5 Electric - - 64.1 57.1 64.1 57.1 Total Expenses 33.9 36.8 78.9 72.7 112.8 109.5 Change in Net Position before Transfers (8.5) (7.6) 17.8 23.8 9.3 16.2 Transfers 10.5 16.3 (10.5) (16.3) - - Change in Net Position 2.0 8.7 7.3 7.5 9.3 16.2 Net Position, beginning of year 44.2 24.1 173.9 167.0 218.1 191.1 Prior Period Adjustment - Net Pension Liability (22.1) - (14.2) - (36.3) - Net Position, Beginning of Year restated 22.1 24.1 159.7 167.0 181.8 191.1 Net Position, End of Year $ 24.1 $ 32.8 $ 167.0 $ 174.5 $ 191.1 $ 207.3 Governmental Activities T Governmental net position increased by $8.7 million, this is an increase of $6.7 million over the prior years’ positive change in net position. The $6.7 million increase is primarily a result of the transfer of net pension liability from the Governmental Activities to the Business-Type Activities for the net pension liability of $5.4 million related to indirect inter-departmental allocation of expenses. Additionally, the increase in the change in net position is related to an increase in property taxes of $1.6 million. The preceding table shows changes in net position for the year ended June 30, 2016 compared to the year ended June 30, 2015. Total revenues of $29.2 million were more than the prior year by $3.8 million. The increase in revenues is primarily due to an increase in the property tax 28

2016 Comprehensive Annual Financial Report for the City of Dover, Delaware Financial Section – Management’s Discussion & Analysis - Part B rate and grants received in the amount of $1.6 million and $0.9 million respectively. Other increases were in charges for services for licenses and permits, court of chancery fees, and investment income. The aforementioned increases were offset by decreases in charges for services for Police fines, Library revenue and sanitation fees. Total expenses in the amount of $36.8 million reflects an overall increase of $2.9 million from the prior year. Public Works costs increased $3.6 million due to capitalizing the completed street and infrastructure for the Garrison Oak Technical Park. General Governmental costs increased due to net OPEB obligation activity of $1.1 million and an increase in the transfer to uncollectible reserves of $0.3 million. Other increases totaling $0.2 million were across the Community, Economic Development and Central Services functions. The aforementioned increases were offset by decreases in Public Safety of $1.1 million for Police Pension activity, D Library and Recreation of $0.9 million for infrastructure related to a pocket park. The cost allocation to the enterprise funds increased as well. All of which results in a net $0.3 million decrease to the total expenses for the Governmental Activities. The chart that follows allocates revenues to program costs as applicable. It shows that some City functions are in part self-supporting. R $25 $20 $20.2 AF $15 Millions Reve nue s $10 Expenses $8.1 $5.7 $6.3 $5 $3.9 $3.4 $2.4 $2.2 $1.0 $1.5 $0.3 $0.7 $0 General Public Safety Public Works Library & Community & Central Financial Government Recreation Economic Services Administration Development T 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. 29

2016 Comprehensive Annual Financial Report for the City of Dover, Delaware Financial Section – Management’s Discussion & Analysis - Part B Charges for Services 23% Utility Transfer In 36% Operating Grants and Contributions D Transfer Taxes Property Taxes 6% Capital Grants and Contributions 2% R 5% 28% In the preceding chart, the Utility Transfer-In percentage of 36% includes approximately $5.4 million for the transfer of Net Pension Liability. The percentage without the Net Pension Liability would have been 27%. Business-Type Activities AF The business-type activities saw a positive change in net position of $7.5 million. Both the water/wastewater and electric utilities experienced an increase in charges for services of $0.1 million and $0.9 million respectively. There were no Capital grants and contributions received for the utilities in the current year resulting in a decrease of $1.1 million in revenue. The indirect expense allocation increased by $0.3 million as well as the expense for the water/wastewater utility in the amount of $0.5 million, conversely the expense for the electric utility decreased by $7.0 million which resulted in a combined net decrease in expense of $6.2 million. Transfers out to the General Fund included $0.9 million from the water/wastewater utility, $10.0 million from the electric utility and an allocation of $5.4 million of Net Pension Liability related to the indirect inter-departmental allocations. The water/wastewater utility had a positive change in net position of $0.3 million. The utility experienced an increase in operating income of $0.1 million from the previous year. The T increase in operating income was due to an increase in Water revenue related to higher usage and miscellaneous revenues of $0.6 million and $0.1 million respectively. The increases were offset by a decrease in impact fees in the amount of $0.6 million. The electric utility realized a positive change in net position of $7.2 million. The revenues increased by $1.2 million attributed to an increase in electric rates of $0.9 million and $0.2 million in interest earned. Expenses in the Electric Fund decreased in total by $6.6 million including indirect expense allocation. The decreases were attributed to the following: $7.4 million for power supply and generation costs, $0.2 million for Transmission/Distribution. $0.4 30

2016 Comprehensive Annual Financial Report for the City of Dover, Delaware Financial Section – Management’s Discussion & Analysis - Part B million for Engineering and $1.5 million in retiree healthcare. The previously mentioned decreases were offset by increases of $2.0 million related to other post-employment benefits within the general administration function and $0.9 million in depreciation. $90.0 $81 $73 Operating $80.0 Revenues & $70.0 Millions Transfers $60.0 D $50.0 $40.0 $30.0 $20.0 $10.0 $- Electric Revenue Fund $15 $15 Water/Wastewater Fund Operating Expenses & Transfers R 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. AF 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 balances of the City’s governmental funds as of June 30, 2016, were $9.9 million. This represented an increase of $0.3 million during the year. Approximately 50% of the combined fund balances, $5.0 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 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. T 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, 2016, was $9.2 million, which is consistent with the prior year’s balance. Revenue increased by $2.5 million due to an increase in property tax revenue of $1.6 million, licenses and permits of $0.6 million and other increases in court of chancery fees, police extra-duty, miscellaneous services and investment income totaling $0.5 million offset by decreases totaling $0.3 million in library revenues, sanitation revenues and grants received. 31

2016 Comprehensive Annual Financial Report for the City of Dover, Delaware Financial Section – Management’s Discussion & Analysis - Part B Expenditures increased $0.8 million due to an increase in police salaries and fringes of $1.0 million and an increase in transfer to reserves of $0.3 million. The previously mentioned increases were offset by decreases in the Street/Sanitation Services of $0.5 million due to reduced capital improvement expenditures attributed to the Garrison Oak Park infrastructure completion. Debt service decreased $0.3 million due to the prior year refunding of the 2003 Series bonds. The current fiscal year experienced a decrease in Other Financing Sources totaling $3.3 million related to a prior year bond issue in the amount of $4.1 million and the operating transfers-in increased by $0.8 million. Proprietary Funds D 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, 2016, the Water/Wastewater Fund has a net position of $54.8 million, of which $5.0 million is unrestricted. The fund’s net position increased $0.3 million during the year as explained on page 32. As of June 30, 2016, the Electric Revenue Fund has a net position of $119.8 million, of which $21.9 million is unrestricted. This fund experienced an increase in net position of $7.2 million during the year as explained on page 32. R General Fund Budgetary Highlights During this fiscal year, the City Council amended the budget three times. These budget amendments or supplemental appropriation ordinances were primarily for the following purposes: AF 1. To re-appropriate budget balances for ongoing capital projects. 2. To amend the grant budgets, reserve accounts for the actual results from the prior fiscal year and all carried forward budget balances for the major operating funds from the prior fiscal year, as well as program revenues and expenses based on the analyses provided by a mid-year review. 3. To amend significant changes in program revenues, expenses and ending fund balances based on actual amounts. The General Fund financials in the Governmental Fund Balance Sheet (page 43) and Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds (page 45) include both the General Fund operating activities and the Governmental Capital Project Fund activities. T The General Fund – Schedule of Revenues, Expenditures and Changes in Fund Balances – Budget & Actual is included in Part D – Required Supplementary Information (page 109-110). The Governmental Capital Projects Fund – Schedule of Revenues, Expenditures and Changes in Fund Balances-Budget and Actual is included in Part E – Supplementary Information (Page 124). The Combining Statements – Combining General Fund Balance Sheet and Combining Statement of Revenues, Expenditures and Changes in Fund Balances of the General Fund is 32

2016 Comprehensive Annual Financial Report for the City of Dover, Delaware Financial Section – Management’s Discussion & Analysis - Part B included in Part E – Supplementary Information (page 122 & 123). The Final General Fund Budget incorporated the following changes to the Original Budget. The Budget Balance carried forward from the prior fiscal year was higher by $0.8 million than was projected. Receipts had a net increase of approximately $0.7 million. The most significant increases were attributed to transfer taxes, police grants, municipal street aid and interest earnings. The most significant reductions of revenue were library revenues, Police extra duty fees, property taxes and interfund service receipts from the utilities. Budgeted expenditures were revised to reflect an aggregate increase of $1.1 million. The increases were to appropriations to the Police and Employee Pension funds, public safety police, public inspections, city manager and an addition of budgeted moneys to acquire the D New Street properties. The aforementioned increases were offset by decreases in grounds maintenance, library, information technology, public works administration, Retiree Benefits expense and a decrease in the budgeted appropriation to the Capital Asset Reserve. The net result of these changes was a $0.4 million increase in the revised budget balance over the original budget balance (on a non-GAAP basis). Actual revenues and other financing sources received were above the final budgeted amounts R in the General Fund by $0.7 million for the current fiscal year. The more signif icant positive variances were in permits and other licenses, police extra-duty revenues, transfer tax and court of chancery fees. These revenue increases were offset with lower revenues for police pension grants. Expenditures were approximately $0.2 million under budget as a result of several operating departments experiencing personnel savings through attrition as well as lower than budgeted transfer to the Police Pension Fund. The General Fund budget balance carry forward was $0.9 million higher than budgeted as a result of the above variances. AF Capital Asset and Debt Administration At the end of the current fiscal year, the City’s governmental and proprietary funds had invested $60.9 million and $141.3 million, respectively, in a variety of capital assets and infrastructure, as reflected in the following schedule, which represents a net increase of $2.1 million for governmental activities and the proprietary funds increased by $0.6 million. The increase in Governmental Activities relates to the capitalization of the Garrison Oak Park street infrastructure. 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. Governmental Business-Type Activities Activities Total 2015 2016 2015 2016 2015 2016 Depreciable Assets, Net Buildings Equipment Vehicles General Infrastructure Utility, Plant, Buildings, and Infrastructure Other Non-depreciable Assets Land Construction in Progress $ $ 24.7 2.3 1.3 22.4 - 0.7 3.9 3.5 58.8 $ $ 24.1 27.7 60.9 33 2.4 1.5 4.0 0.6 - 0.6 $ T 1.6 10.5 $ 140.7 - - - - 128.6 - $ $ 141.3 - - 136.0 1.6 3.7 - - - $ 24.7 2.3 1.3 22.4 128.6 0.7 5.5 14.0 $ 199.5 $ 24.1 2.4 1.5 27.7 136.0 0.6 5.6 4.3 $ 202.2

2016 Comprehensive Annual Financial Report for the City of Dover, Delaware Financial Section – Management’s Discussion & Analysis - Part B The Net Pension Liability for the Governmental Activities decreased by $6.5 million mostly due to a transfer of the liability of $5.4 million from the Governmental Activities to the Business-Type Activities as explained previously on page 30. The Net Pension Liability for the Business-Type Activities increased by $5.3 million as explained previously on page 30. Additional detailed data for all debt of the City is presented in the Notes to the Basic Financial Statements in Note 5. 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 4.4% of its debt limit. D Non-current liabilities Liability for Compensated Absences Bonds (Net of Discount/Issuance Cost) OPEB Obligation $ Governmental Activities 2015 2.1 7.3 14.5 2016 $ 2.0 6.8 15.6 $ Business-Type Activities 2015 0.8 35.3 0.4 $ 2016 0.8 32.2 0.4 $ 2015 2.9 48.4 14.8 Total $ 2016 2.8 39.0 16.0 R Net Pension Liability $ Economic Factors and Next Year’s Budgets and Rates 24.3 48.2 $ 17.8 42.2 $ 7.2 43.7 $ 12.5 45.9 The City developed the fiscal year 2017 budget in accordance with the City’s financial policies ensuring all budgets are balanced and reserve requirements were adhered to. The following $ 26.4 92.5 $ 30.3 88.1 AF changes over fiscal year 2016 were incorporated into the fiscal year 2017 budget.  Property taxes and utility rates remained the same as the prior fiscal year.  A power cost adjustment credit was implemented for the Electric Utility due to lower power supply cost.  The City decreased the previous headcount by two full-time janitorial positions that were filled by contract services.  Increases in wages based on collective bargaining agreements were included.  A 2.5% wage increase was included for non-bargaining employees.  Benefit rate changes were included for health insurance, pension, OPEB and worker’s compensation for a total $0.2 million.  No discretionary increases in operating expenses.  Funded the capital investment plan with a commitment to providing dollars for necessary infrastructure and utility improvements. T The General Fund operating revenues are projected to increase by 2.2% or $0.9 million and expenditures increasing by 2.5% or $1.0 million. The net decrease was made up of an increase in transfer taxes $0.3 million, police extra duty receipts $0.3 million, inspections permits and fees $.2 million and the Municipal Street Aid Grant $0.1 million. The increased expenditures were largely attributed to the full effects of ten additional police officers that were hired during the prior fiscal year $0.9 million, Library personnel and contractual increases $0.1 million, retiree health care premiums $0.2 million, increased Street Division expenditures 34

2016 Comprehensive Annual Financial Report for the City of Dover, Delaware Financial Section – Management’s Discussion & Analysis - Part B related to the MS4 permit $0.5 million, public works administration $0.1 million, appropriation to the Police Pension Fund $0.1 million and police extra duty $0.2 million. Other categories of expenditures that experienced reductions were transfers to the capital project fund $0.8 million, economic development $0.2 million, and sanitation $0.1 million. The Water/Wastewater Fund operating revenues decreased 1.7% or $0.3 million and expenses decreased 5.4% or $0.9 million. The revenue decrease is largely attributed to lower than expected revenues derived from the startup of the Garrison Energy Center $0.4 million, a 305 Mgw combined cycle electric generating plant. The decrease in expenses are related to water treatment plant operating cost due to the lower run time for the Garrison Energy Center $0.2 million and lower capital fund appropriations of $1.3 million, offset by increased internal service D allocations $0.2 million, debt service payments $0.1 million, and transfers to reserves $0.1 million. The City continues to maintain competitive water and wastewater rates within the State of Delaware. The Electric Fund overall revenues decreased 4.9% or $4.1 million and expenses decreased by 1.9% or $1.5 million. In the previous year, the Electric Fund included a $3.0 million transfer from the rate stabilization reserve in order to maintain operating cash requirements. The current year does not include a transfer from the reserve. Customer sales decreased by $1.1 million R attributed to a power cost adjustment credit with the lower power supply cost. The City continues to budget flat growth attributed to demand response programs being implemented by large customers and conservation measures on the part of other commercial and residential customers. The electric power supply cost decreased $2.8 million but was offset by $3.1 million decrease in capacity revenue, netting an increase in power supply cost of $0.3 million. The 2010 Series AF Revenue Bonds were fully paid in the prior fiscal year, therefore resulting in lower debt service of $1.8 million. Transfers to the capital and rate stabilization reserves were included in the current budget for a total increase of $2.8 million. The appropriation to the capital project fund decreased $1.0 million. The OPEB appropriation decreased by $1.0 million due to a decrease in the Net OPEB Liability. Other decreases in division and internal service expenses were also a result of lower pension and OPEB cost $0.6 million. Capital projects are budgeted to be financed with a $2.5 million transfer from operating income, and $0.9 million of developer charges for new development projects. 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. Contacting the City’s Financial Management T 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. Donna Mitchell, Controller/Treasurer at 302-736- 7018 (TTY/TDD Operator 1-800-855-1155). 35

2016 Comprehensive Annual Financial Report for the City of Dover, Delaware Financial Section – Management’s Discussion & Analysis - Part B D R AF Children in Dover’s Village of Westover development playing in the snow, January 2016 Credit Photo: Dover Post, Nicole Ali T 36

T AF R D

2016 Comprehensive Annual Financial Report for the City of Dover, Delaware Financial Section – Basic Financial Statements – Part C D R AF Firefly made its fifth appearance in Dover's The Woodlands, June 16-19. More than 90,000 people attended in 2015. Credit Photo: Dover Post, Andre Lamar T 38

2016 Comprehensive Annual Financial Report for the City of Dover, Delaware Financial Section – Basic Financial Statements – Part C City of Dover Statement of Net Position June 30, 2016 Governmental Business-Type Activities Activities Total Assets: Cash and Cash Equivalents $ 1,919,563 $ 6,717,278 $ 8,636,841 Investments 9,064,140 27,664,181 36,728,321 Receivables, Net 905,092 5,884,307 6,789,399 Internal Balances 536,629 (536,629) - Due from Other Governments 80,318 - 80,318 D Inventory, at Cost Prepaid Items Restricted Cash and Cash Equivalents Restricted Investments Net Pension Asset Net OPEB Asset Land and Construction in Progress Capital Assets, Net of Depreciation 114,156 73,484 1,571,191 18,438 524,958 - 4,559,203 56,284,996 5,131,745 352,688 2,167,556 36,428,344 - 3,155,497 5,291,961 135,989,502 5,245,901 426,172 3,738,747 36,446,782 524,958 3,155,497 9,851,164 192,274,498 R Total Assets Deferred Outflows of Resources: Pension related deferred outflows Liabilities: Accounts Payable and Accrued Liabilities Unearned Revenue Customer Deposits 75,652,168 3,196,262 2,542,213 83,097 - 228,246,430 1,364,922 5,811,551 395,523 2,116,470 303,898,598 4,561,184 8,353,764 478,620 2,116,470 AF Other 208,972 574,805 783,777 Non-Current Liabilities Due within One Year 1,731,154 1,802,342 3,533,496 Due in more than One Year 7,070,421 31,232,796 38,303,217 Due in more than One Year - OPEB 15,573,082 446,164 16,019,246 Due in more than One Year - Pension 17,777,293 12,495,177 30,272,470 Total Liabilities 44,986,232 54,874,828 99,861,060 Deferred Inflows of Resources: Pension related deferred inflows 1,082,420 186,786 1,269,206 Net Position: Net investment in capital assets 54,061,334 110,647,045 164,708,379 Restricted for: State Capital Grants 90,699 37,026,527 37,117,226 Public Safety Grants Verizon Grant Library Grant Community Development Grants Other State Grants Unrestricted Total Net Position $ 612,470 171,925 39,019 17,338 1,277 (22,214,284) 32,779,778 $ The notes to financial statements are an integral part of this statement. 39 T - - - - - 26,876,166 174,549,738 612,470 171,925 39,019 17,338 1,277 4,661,882 $ 207,329,516

2016 Comprehensive Annual Financial Report for the City of Dover, Delaware Financial Section – Basic Financial Statements – Part C City of Dover Statement of Activities For the Year Ended June 30, 2016 D Functions/Programs Governmental Activities General Government Public Safety Public Works Library and Recreation $ Expenses 5,741,412 $ 20,159,412 8,123,018 2,183,802 Indirect Expenses Allocation (1,068,935) - (741,461) - $ Charges for Services 2,336,389 $ 4,920,783 2,527,478 667,996 Program Revenues Operating Grants and Contributions Contributions 50,000 $ 1,371,840 751,105 282,248 Capital Grants and - - 577,284 98,500 Net (Expense) Revenue and Changes in Net Position $ Governmental Activities (2,286,088) $ (13,866,789) (3,525,690) (1,135,058) Business Type Activities - $ - - - Total (2,286,088) (13,866,789) (3,525,690) (1,135,058) Community and Economic Development Central Services Financial Administration Interest Charges Total Governmental Activities Business Type Activities Water/Wastewater Electric R Total Business Type Activities Total Primary Government $ 739,123 1,451,950 3,349,835 118,565 41,867,117 10,499,280 57,154,683 67,653,963 109,521,080 $ (187,244) (968,524) (2,100,823) - (5,066,987) 1,426,019 3,640,968 5,066,987 - $ - - - - 10,452,646 14,976,213 80,695,910 95,672,123 106,124,769 $ 304,174 - - - 2,759,367 - - - 2,759,367 $ - - - - 675,784 44,955 - 44,955 720,739 $ (247,705) (483,426) (1,249,012) (118,565) (22,912,333) - - (22,912,333) $ - - - - - 3,095,869 19,900,259 22,996,128 $ (247,705) (483,426) (1,249,012) (118,565) (22,912,333) - 3,095,869 19,900,259 83,795 AF General Revenues Taxes Property Taxes 12,846,774 - 12,846,774 Transfer Taxes 2,191,915 - 2,191,915 Earnings on Investments 263,667 799,528 1,063,195 Total General Revenues 15,302,356 799,528 16,101,884 Transfers 16,295,503 (16,295,503) - Total General Revenues and Transfers 31,597,859 (15,495,975) 16,101,884 Changes in Net Position 8,685,526 7,500,153 16,185,679 Net Position Beginning 24,094,252 167,049,585 191,143,837 Net Position Ending $ 32,779,778 $ 174,549,738 $ 207,329,516 The notes to financial statements are an integral part of this statement. 40 T

2016 Comprehensive Annual Financial Report for the City of Dover, Delaware Financial Section – Basic Financial Statements – Part C City of Dover Governmental Fund Balance Sheet June 30, 2016 Total Total General Nonmajor Governmental Fund Funds Funds Assets: Cash and Cash Equivalents $ 1,555,460 $ - $ 1,555,460 Restricted Cash and Cash Equivalents 763,697 807,494 1,571,191 Investments 7,647,384 - 7,647,384 Restricted Investments 18,438 - 18,438 D Receivables, net Accounts Taxes Due from Other Funds Due from Other Governments Prepaid Items Inventory, at Cost Total Assets $ 813,294 77,421 614,906 - 59,384 114,156 11,664,140 $ 1,377 - 600 80,318 350 - 890,139 $ 814,671 77,421 615,506 80,318 59,734 114,156 12,554,279 R Liabilities: Accounts Payable Unearned Revenue Due to Other Funds Other Total Liabilities $ 1,937,904 80,969 3,831 208,972 2,231,676 $ 53,656 2,128 75,046 - 130,830 $ 1,991,560 83,097 78,877 208,972 2,362,506 AF Deferred Inflows of Resources: Unavailable revenue 273,240 - 273,240 Total Deferred Inflows of Resources 273,240 - 273,240 Fund Balances: Non-Spendable 195,134 350 195,484 Restricted 173,769 758,959 932,728 Committed 1,059,197 - 1,059,197 Assigned 2,735,602 - 2,735,602 Unassigned 4,995,522 - 4,995,522 Total Fund Balances 9,159,224 759,309 9,918,533 Total Liabilities, Deferred Inflows and Fund Balances $ 11,664,140 $ 890,139 $ 12,554,279 The notes to financial statements are an integral part of this statement. ` 41 T

2016 Comprehensive Annual Financial Report for the City of Dover, Delaware Financial Section – Basic Financial Statements – Part C City of Dover Reconciliation of the Balance Sheet of Governmental Funds To the Statement of Net Position June 30, 2016 Amounts reported for governmental activities in the statement of net position (page 41) are different because: Total fund balances for governmental funds (Page 43) $ 9,918,533 Capital assets used in governmental activities are not financial resources and, therefore, are not reported in the funds. 60,844,199 D 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 Net Pension Asset - Police 273,240 524,958 The net pension liability is not due and payable in the current period; therefore, the liability and related deferred inflows/outflows are not reported in governmental funds: 798,198 R Deferred Outflows - Pension Deferred Inflows - Pension Net Pension Liability $ An internal service fund (page 47) is used by the City to charge the cost of the 3,196,262 (1,082,420) (17,777,293) workers' compensation fund. The assets and liabilities of the internal service fund are included in governmental activities in the statement of net position. (15,663,451) 1,256,956 AF 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 OPEB obligation resulting from contributions less than the annual required contribution (general) is not a use of current financial resources, and therefore, is not reported in the governmental funds. Current- General Obligation Bonds $ (573,276) Compensated Absences Long-Term- General Obligation Bonds Compensated Absences Net OPEB Obligation Total net position of governmental activities (Page 41 ) The notes to financial statements are an integral part of this statement. 42 T (1,157,878) (1,731,154) (6,209,589) (860,832) (15,573,082) (22,643,503) $ (24,374,657) 32,779,778

2016 Comprehensive Annual Financial Report for the City of Dover, Delaware Financial Section – Basic Financial Statements – Part C City of Dover Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds For the Year Ended June 30, 2016 Total Total General Nonmajor Governmental Fund Funds Funds Revenues Fines $ 659,418 $ 468,793 $ 1,128,211 Library Revenue- General 67,078 - 67,078 Library Revenue County Reimbursement 352,599 - 352,599 D Licenses and Permits Sanitation Fees and Rebates Recreation Miscellaneous Services Property Taxes Transfer Taxes Grants Received Court of Chancery Fees 3,525,992 2,527,478 - 1,874,534 12,893,566 - 650,538 1,239,300 - - 65,145 - - 2,191,915 2,798,700 - 3,525,992 2,527,478 65,145 1,874,534 12,893,566 2,191,915 3,449,238 1,239,300 R Investment Income Total Revenues Expenditures Current: General Government Library Services Public Safety and Law Enforcement 232,067 24,022,570 1,873,837 1,430,640 21,039,124 2,818 5,527,371 2,550 289,381 441,744 234,885 29,549,941 1,876,387 1,720,021 21,480,868 AF Public Works 1,602,389 544,528 2,146,917 Recreational Services 783,976 - 783,976 Streets and Sanitation Services 6,081,813 - 6,081,813 Engineering services 166,579 - 166,579 Financial Administration 919,086 - 919,086 Garage and Stores 465,843 - 465,843 Insurance 280,901 - 280,901 Retiree Health Care 1,567,700 - 1,567,700 Employee Pension 594,300 - 594,300 Community and Economic Development 122,813 429,066 551,879 Street Lights 804,246 - 804,246 Debt Service: Principal Retirement 553,824 - 553,824 Interest and Fiscal Charges 118,565 - 118,565 Total Expenditures 38,405,636 1,707,269 40,112,905 Excess (deficiency) of Revenues over Expenditures Other financing Sources (Uses) Transfers in Transfers out Total other Financing Sources (Uses) Net Change in Fund Balances Fund Balances at Beginning of Year Fund Balances at End of Year The notes to financial statements are an integral part of this statement. 43 $ T (14,383,066) 14,339,821 - 14,339,821 (43,245) 9,202,469 9,159,224 $ 3,820,102 - (3,489,821) (3,489,821) 330,281 429,028 759,309 $ (10,562,964) 14,339,821 (3,489,821) 10,850,000 287,036 9,631,497 9,918,533

2016 Comprehensive Annual Financial Report for the City of Dover, Delaware Financial Section – Basic Financial Statements – Part C City of Dover 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, 2016 Amounts reported for governmental activities in the statement of activities (page 42) are different because: Net change in fund balances--total governmental funds (Page 45) $ 287,036 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. D Capitalization of net capital asset expenditures including CIP Loss on assets disposed of during the year Current Year depreciation $ 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. 5,489,748 (183,305) (3,284,341) Changes in deferred revenue that are not available to pay for current period expenditures and therefore are not reported as revenues in the funds. 2,022,102 553,824 (388,570) R Contractually required contributions are reported as expenditures in governmental funds; however, the statement of activities reports these amounts as deferred outflows. Except for amounts reported as deferred inflows/outflows, changes in the net pension liability are reported as pension expense in the statement of activities. Transfer of Net Pension Liability for inter-departmentmental personnel that are allocated to the Proprietary funds. 531,091 1,192,317 5,445,503 AF 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. Decrease in compensated absences $ 49,461 Increase in net OPEB obligation - General Fund (1,016,030) (966,569) 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. 8,792 Change in net position of governmental activities (Page 42) The notes to financial statements are an integral part of this statement. 44 T $ 8,685,526

2016 Comprehensive Annual Financial Report for the City of Dover, Delaware Financial Section – Basic Financial Statements – Part C City of Dover Statement of Net Position - Proprietary Funds June 30, 2016 Governmental Business-type Activities Activities Water/ Electric Total Wastewater Revenue Enterprise Internal Fund Fund Funds Service Fund Assets Current Assets: Cash and Cash Equivalents $ 2,140,553 $ 4,576,725 $ 6,717,278 $ 364,103 Investments 8,458,072 19,206,109 27,664,181 1,416,756 D Receivables, Net Due from Other Funds-Charges Inventory Prepaid Items Total Current Assets Non-Current Assets: Restricted Assets Cash Investments 841,144 325 195,491 - 11,635,585 499,187 4,592,229 5,043,163 2,906 4,936,254 352,688 34,117,845 1,668,369 31,836,115 5,884,307 3,231 5,131,745 352,688 45,753,430 2,167,556 36,428,344 13,000 - - 13,750 1,807,609 - - R Net OPEB Asset Land and Construction in Progress Capital Assets, Net of Depreciation Total Non-Current Assets Total Assets Deferred Outflows of Resources: Pension Related Deferred Outflows - 1,568,633 56,035,520 62,695,569 74,331,154 290,802 3,155,497 3,723,328 79,953,982 120,337,291 154,455,136 1,074,120 3,155,497 5,291,961 135,989,502 183,032,860 228,786,290 1,364,922 - - - - 1,807,609 - AF Liabilities Current Liabilities: Accounts Payable and Accrued Expenses 1,792,432 4,019,119 5,811,551 550,653 Due to Other Funds - Charges 169,339 370,521 539,860 - Deferred Revenue - 395,523 395,523 - Accrued Interest Payable 115,453 459,352 574,805 - Customer Deposits - 2,116,470 2,116,470 - Revenue Bonds Payable 777,703 695,000 1,472,703 - Liability for Compensated Absences 97,911 231,728 329,639 - Total Current Liabilities 2,952,838 8,287,713 11,240,551 550,653 Non-Current Liabilities: Net OPEB Obligation 446,164 - 446,164 - Net Pension Liability 4,198,944 8,296,233 12,495,177 - Revenue Bonds Payable 12,111,088 18,620,000 30,731,088 - Liability for Compensated Absences 107,951 393,757 501,708 - Total Non-Current Liabilities 16,864,147 27,309,990 44,174,137 - Total Liabilities 19,816,985 35,597,703 55,414,688 550,653 Deferred Inflows of Resources: Pension Related Deferred Inflows Net Position Net investment in capital assets Restricted for Capital Construction Unrestricted Total Net Position $ The notes to financial statements are an integral part of this statement. 42,880 46,284,735 3,522,043 4,955,313 54,762,091 45 $ T 143,906 64,362,310 33,504,484 21,920,853 119,787,647 186,786 110,647,045 37,026,527 26,876,166 $ 174,549,738 $ - - - 1,256,956 1,256,956

2016 Comprehensive Annual Financial Report for the City of Dover, Delaware Financial Section – Basic Financial Statements – Part C City of Dover Statement of Revenues, Expenses and Changes in Fund Net Position - Proprietary Funds For the Year Ended June 30, 2016 Governmental Business-type Activities Activities Water/ Electric Total Wastewater Revenue Enterprise Internal Fund Fund Funds Service Fund Operating Revenues Charges for Services $ 14,017,446 $ 79,154,638 $ 93,172,084 $ - Miscellaneous Services/Income 942,288 1,535,071 2,477,359 688,553 D Total Operating Revenues Operating Expenses Water/Wastewater Services General Administrative Power Supply Transmission/Distribution Engineering Metering Systems Operations 14,959,734 7,782,664 1,695,735 - - - - - 80,689,709 - 4,912,749 42,643,023 3,309,236 993,856 353,956 579,622 95,649,443 7,782,664 6,608,484 42,643,023 3,309,236 993,856 353,956 579,622 688,553 - 561,086 - - - - - Utility Tax Depreciation Contractual Services Taxes R Retirees Health Care Self Insurance-Workers' Compensation Total Operating Expenses Operating Income/Loss - 1,998,040 - - 143,277 - 11,619,716 3,340,018 1,309,701 5,713,104 - - 57,700 - 59,872,947 20,816,762 1,309,701 7,711,144 - - 200,977 - 71,492,663 24,156,780 - - 4,000 38,041 - 105,416 708,543 (19,990) AF Non-Operating Revenues (Expenses) Interest Earned: Operating Funds 100,350 (101,551) (1,201) - Reserve Funds 60,369 500,140 560,509 23,653 Net Increase in Fair Value of Investments 47,889 192,331 240,220 5,129 Interest and Fiscal Charges (305,583) (922,704) (1,228,287) - Gain on Sale of Assets 16,479 6,201 22,680 - Total Non-Operating Revenue (expenses) (80,496) (325,583) (406,079) 28,782 Income before Contributions and Transfers 3,259,522 20,491,179 23,750,701 8,792 Contractor Contributions - Infrastructure 44,955 - 44,955 - Transfers Out (3,033,320) (13,262,183) (16,295,503) - Total transfers (3,033,320) (13,262,183) (16,295,503) - Change in Net Position 271,157 7,228,996 7,500,153 8,792 Total net position--Beginning 54,490,934 112,558,651 167,049,585 1,248,164 Total Net Position--Ending $ 54,762,091 $ 119,787,647 $ 174,549,738 $ 1,256,956 The notes to financial statements are an integral part of this statement. 46 T

2016 Comprehensive Annual Financial Report for the City of Dover, Delaware Financial Section – Basic Financial Statements – Part C City of Dover Statement of Cash Flows - Proprietary Funds For the Year Ended June 30, 2016 Governmental Business-type Activities Activities Water Electric Total Wastewater Revenue Enterprise Internal Fund Fund Funds Service Fund Cash Flows from Operating Activities Receipts from Customers $ 15,165,362 $ 81,542,835 $ 96,708,197 $ - Payments to Suppliers (including Purchased Power) (9,476,881) (46,244,043) (55,720,924) (144,863) Payments to Employees (2,132,779) (4,511,933) (6,644,712) - Payments of Personnel Related Costs (1,315,649) (2,329,266) (3,644,915) 679,064 Internal Activity--Payments from (to) Other Funds 35,131 - 35,131 - D Other Receipts (Payments) including Claims Paid Net Cash Provided by (used for) Operating Activities Cash Flows from Noncapital Financing Activities Transfers Out Net Cash Used for Noncapital Financing Activities Cash Flows from Capital and Related Financing Activities Acquisition and Construction of Capital Assets Principal Paid on Revenue Bond Maturities 4,299,479 6,574,663 (3,033,320) (3,033,320) (6,739,257) (761,996) 1,901,845 30,359,438 (13,262,183) (13,262,183) (3,486,869) (2,365,000) 6,201,324 36,934,101 (16,295,503) (16,295,503) (10,226,126) (3,126,996) (290,065) 244,136 - - - - R Interest Paid on Capital Debt Net Cash Provided by (used for) Capital and Related Financing Activities Cash Flows from Investing Activities Interest on Investments Redemption of Investment Securities Purchase of Investment Securities Interest on Restricted Cash Net Cash Provided by (used for) Investing Activities Net Increase/(Decrease) in Cash and Cash Equivalents (363,911) (7,865,164) 100,350 1,858,729 (3,802,794) 60,369 (1,783,346) (6,107,167) (922,704) (6,774,573) (101,551) 3,766,419 (16,385,453) 500,140 (12,220,445) (1,897,763) (1,286,615) (14,639,737) (1,201) 5,625,148 (20,188,247) 560,509 (14,003,791) (8,004,930) - - - (29,210) 28,782 - (428) 243,708 AF Balances--Beginning of the Year 8,746,907 8,142,857 16,889,764 120,395 Balances--End of the Year $ 2,639,740 $ 6,245,094 $ 8,884,834 $ 364,103 Reconciliation of Operating Income to Net Cash Provided by (Used for) Operating Activities: Operating Income $ 3,340,018 $ 20,816,762 $ 24,156,780 $ (19,990) Adjustments to Reconcile Operating Income to Net Cash provided by (Used for) Operating Activities: Depreciation Expense 1,998,040 5,713,104 7,711,144 - Changes in Assets and Liabilities (Increase)/Decrease in Receivables 205,857 767,509 973,366 - (Increase)/Decrease in Due from Other Funds (229) (2,323) (2,552) - (Increase)/Decrease in Inventory (134,244) (46,209) (180,453) - (Increase)/Decrease in Prepaid Items 50 (352,588) (352,538) - (Increase)/decrease in NPA for pension (56,314) - (56,314) 264,126 (Increase)/decrease in deferred outflow of resources - (111,233) (111,233) - Increase/(decrease) in accounts payable and accrued expenses (3,159,863) (107,373) (3,267,236) - Increase/(decrease) in deferred revenue - 39,287 39,287 - Increase/(decrease) in due to other funds Increase/(Decrease) in Customer Deposits Increase/(Decrease) in Liability for Compensated Absences Increase/(Decrease) in NPO for OPEB Increase/(Decrease) in Net pension liability Increase/(decrease) in deferred inflow of resources Net Cash Provided by Operating Activities Non-Cash Investing, Capital and Financing Activities: Change in Fair Value of Investments Capital Contributions - Infrastructure The notes to financial statements are an integral part of this statement. 47 $ $ T 35,131 - 21,316 83,077 4,198,944 42,880 6,574,663 47,889 44,955 $ $ 37,261 48,653 36,107 326,411 3,164,250 29,820 30,359,438 192,331 - $ $ 72,392 48,653 57,423 409,488 7,363,194 72,700 36,934,101 240,220 44,955 $ $ - - 244,136 - - 5,129 -

2016 Comprehensive Annual Financial Report for the City of Dover, Delaware Financial Section – Basic Financial Statements – Part C City of Dover Statement of Net Position Fiduciary Funds June 30, 2016 Pension OPEB Trust Trust Agency Funds Fund Funds Assets D Cash and Cash Equivalents Investments at Fair Value - Mutual Funds Receivables Prepaid Items Total Assets $ 2,304,849 45,618,373 - - 47,923,222 $ 1,082,165 22,962,247 - - 24,044,412 $ 576,629 - 134 594 577,357 Liabilities R Accounts Payable Due to Agencies Total Liabilities Net Position Net Position Held in Trust for Retirement Benefits $ 47,923,222 - - - $ 1,250 - 1,250 24,043,162 $ 43,874 533,483 577,357 AF The notes to financial statements are an integral part of this statement. 48 T

2016 Comprehensive Annual Financial Report for the City of Dover, Delaware Financial Section – Basic Financial Statements – Part C City of Dover Statement of Changes in Net Position Fiduciary Funds For the Year Ended June 30, 2016 Pension OPEB Trust Trust Funds Fund Additions: D Net Investment Income City's Contribution-Payroll Based City's Contribution-Lump Sum Employee Contribution State Grants Other Total Additions $ 1,129,434 2,246,709 1,519,200 202,340 415,128 1,650 5,514,461 $ 492,791 1,882,144 1,685,600 - - - 4,060,535 R Deductions: Benefit Payments General Administration Total Deductions Change in Net Position 5,246,135 20,871 5,267,006 247,455 2,465,663 - 2,465,663 1,594,872 AF Net Position - Beginning 47,675,767 22,448,290 Net Position - Ending $ 47,923,222 $ 24,043,162 The notes to financial statements are an integral part of this statement. 49 T

2016 Comprehensive Annual Financial Report for the City of Dover, Delaware Financial Section – Basic Financial Statements – Part C D R AF "William Henry Middle School students have worked on the Night of Arts and the Disney “The Jungle Book Kids” since October [2015]." Credit photo: Delaware State News, Lexi Coon T 50

2016 Comprehensive Annual Financial Report for the City of Dover, Delaware Financial Section – Notes to Financial Statements A. The City of Dover ................................................................................................................... 53 B. Reporting Entity ..................................................................................................................... 53 D A. Basis of Presentation............................................................................................................. 54 B. Basis of Accounting and Measurement Focus .................................................................... 55 C. New Pronouncements .......................................................................................................... 56 D. Capital Assets and Long-Term Liabilities............................................................................. 58 E. Budget Procedures ................................................................................................................ 58 F. Major Transfers ...................................................................................................................... 59 R G. Inventories and Prepaid Items ............................................................................................. 59 H. Cash and Investments .......................................................................................................... 60 I. Accounts Receivable ............................................................................................................... 60 J. Restricted Assets ..................................................................................................................... 60 K. Unbilled Service Receivables ................................................................................................ 60 L. Bond Accounts/Issuance Costs ............................................................................................. 60 AF M. Deferred Outflows/Inflows of Resources ........................................................................... 61 N. Unbilled Service Receivables ................................................................................................ 61 O. Bond Accounts/Issuance Costs ............................................................................................ 62 A. Cash In Bank and Cash Equivalents .................................................................................... 62 B. Investments............................................................................................................................ 62 T A. Summary of Bonded Indebtedness by Issue ...................................................................... 68 B. Status of June 30, 2015 – General Obligations Bonds ....................................................... 68 C. Change In Long-Term Debt................................................................................................... 69 D. Debt Service Requirements .................................................................................................. 70 51

2016 Comprehensive Annual Financial Report for the City of Dover, Delaware Financial Section – Notes to Financial Statements A. Due To/From Other Funds – Charges and Allocations ....................................................... 76 B. Interfund Transfers .............................................................................................................. 76 D R A. Health Insurance – State of Delaware ................................................................................. 80 B. Workers’ Compensation Fund – Self-Insurance ................................................................. 80 C. Other than Health or Workers’ Compensation Insurance ................................................. 80 AF Summary of Principal Plan Provisions as of July 1, 2015 ........................................................ 82 A. Defined Contribution Plan .................................................................................................... 87 B. Defined Benefit Plans ........................................................................................................... 88 T 52

2016 Comprehensive Annual Financial Report for the City of Dover, Delaware Financial Section – Notes to Financial Statements NOTES TO FINANCIAL STATEMENTS YEAR ENDED JUNE 30, 2016 1. FINANCIAL REPORTING ENTITY A. The City The City of Dover 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 D financial position and operating results for fiscal year ended June 30, 2016. 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 Accounting Principles Generally Accepted in the United States of America (GAAP). The criterion used is that set forth by Statement of R 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. AF Included within the reporting entity: The City provides many services as follows - police protection, street maintenance, sanitation, 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 has 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. 2. T The Robbins Hose Volunteer Fire Company 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. 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: 53

2016 Comprehensive Annual Financial Report for the City of Dover, Delaware Financial Section – Notes to Financial Statements 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. 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 D 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 to meeting the operational or capital requirements of a particular program. 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 R 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. AF Fund Financial Statements: The accounts of the City are organized on the basis of 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, 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 the means by which 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 T 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. The City reports the following major proprietary funds: Water/Wastewater Fund This fund accounts for transactions related to water and wastewater services, including the payment of fees to Kent County for the treatment of sewage. The City also holds lease agreements with cell phone companies for equipment placed on City water towers. 54

2016 Comprehensive Annual Financial Report for the City of Dover, Delaware Financial Section – Notes to Financial Statements Electric Revenue Fund This fund incorporates all transactions related to the generation, transmission and distribution 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: 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 three major funds. Expenses are related to payment of claims, premiums, and administration costs. D Actuarial analyses are completed every three years to insure sufficient reserves for claims for the Workers’ Compensation Fund. Special Revenue Funds The City has nine 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. R Fiduciary Funds Fiduciary funds consist of trust and agency funds and are used to report assets held by the City in a trustee or agency 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 AF these plans is accounted for in the Basic Financial Statements. Agency funds are used to account for assets held by the City as an agent for individuals, private organizations or other governments. The City has two agency funds. The City acts as the receiving and paying agent for the Downtown Dover Partnership and the Fourth of July Celebration Committee. 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. T 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 for which they are levied provided they are “available”- i.e., they are collected in the current period or are expected to be collected soon enough thereafter to be used to pay liabilities of the current period. The City considers all 55

2016 Comprehensive Annual Financial Report for the City of Dover, Delaware Financial Section – Notes to Financial Statements 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 and grant fund revenues which have a ninety-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. D The government-wide financial statements as well as all proprietary and fiduciary trust funds are accounted for using the accrual basis of accounting and the economic resources measurement focus. Agency funds have no 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 44 & 46. The types of transactions included in program R 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 fund. Principal operating revenue for proprietary funds is charges to customers for sales and services. Principal operating expenses are the costs of providing goods and services, which include AF 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. C. New Pronouncements GASB Statement No. 72, “Fair Value Measurement and Application”, was issued in February 2015 and is effective for periods beginning after June 15, 2015. This statement requires disclosures to be made about fair value measurements, the level of fair value hierarchy and valuation techniques. The statement also clarifies the definition of “fair value”. GASB Statement No. 74, “Financial Reporting for Postemployment Benefit Plans Other Than Pension Plans”, was issued in June 2015 and is effective for periods beginning after June 15, 2016. The objective of this statement is to provide guidance for improving the usefulness of information about defined benefit OPEB plans that are administered through trusts that meet the T specified criteria; this Statement requires two financial statements – a statement of fiduciary net position and a statement of changes in fiduciary net positon. This statement also replaces statements No. 43 as amended and statement No. 57. GASB Statement No. 75, “Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions” was issued in June 2015 and is effective for periods beginning after June 15, 2017. This statement’s objectives are to improve information provided by state and local governmental employers about financial support for OPEB that is provided by other entities. It also replaces statements No. 45 and No. 57 and establishes new accounting and financial 56

2016 Comprehensive Annual Financial Report for the City of Dover, Delaware Financial Section – Notes to Financial Statements reporting requirements for OPEB plans. GASB Statement No. 76, “The Hierarchy of Generally Accepted Accounting Principles for State and Local Governments”, was issued in June 2015 and is effective for periods beginning after June 15, 2015. The objective of this statement is to identify in the context of the current governmental financial reporting environment – the sources of accounting principles used to prepare financial statements of state and local governmental entities in conformity with generally accepted accounting principles (GAAP) and the framework for selecting those principles. GASB Statement No. 77, “Tax Abatement Disclosures” was issued in August 2015 and is effective for periods beginning after December 15, 2015. The objective of this statement is to assist the users of financial statements in determining how tax abatements affect the financial D position and results of operations, including its ability to raise resources in the future. GASB Statement No. 78, “Pensions Provided through Certain Multiple-Employer Defined Benefit Pension Plans” was issued in December 2015 and is effective for reporting periods beginning after December 15, 2015. The objective of this Statement is to address a practice issue regarding the scope and applicability of Statement No. 68, Accounting and Financial Reporting or Pensions. This issue is associated with pensions provided through certain R multiple-employer defined benefit pension plans and to state or local governmental employers whose employees are provided with such pensions. GASB Statement No. 79, “Certain External Investment Pools and Pool Participants” was issued in December 2015 and is effective for periods beginning after June 15, 2015, except for the provisions in paragraphs 18, 19, 23 – 26, and 40, which are effective for reporting periods beginning after December 15, 2015. This issue specifically establishes criteria for an external investment pool to qualify for making the election to measure all of its investments at amortized AF cost. At this current time, the City has no external investment pools. GASB Statement No. 80, “Blending Requirements for Certain Component Units-an amendment of GASB Statement No. 14” was issued January 2016 and is effective for reporting periods beginning after June 15, 2016. The objective of this statement is to improve financial reporting by clarifying the financial statement presentation requirements for certain component units. At this current time, the City has no component units. GASB Statement No. 81, “Irrevocable Split-Interest Agreements” was issued March 2016 and is effective for periods beginning after December 15, 2016. The objective of this statement is to improve accounting and financial reporting for irrevocable split-interest agreements by providing recognition and measurement guidance for situations in which a government is a beneficiary of the agreement. At this current time, the City has not entered into an irrevocable split-interest agreement. T GASB Statement No. 82, “Pension Issues – an amendment of GASB Statements No. 67, No. 68, and No. 73” was issued March 2016 and is effective for reporting periods beginning after June 15, 2016, except for the requirements of paragraph 7 in a circumstance in which an employer’s pension liability is measured as of a date other than the employer’s most recent fiscal year-end. The objective of this statement is to address certain issues that have been raised with respect to Statements Numbers 67, 68 & 73. Specifically, this statement addresses issues regarding 1). payroll related RSI information 2). treatment of deviations from the guidance in an Actuarial Standard of Practice for reporting purposes and 3). the classifications of payments made by employers to satisfy employee contribution requirements. 57

2016 Comprehensive Annual Financial Report for the City of Dover, Delaware Financial Section – Notes to Financial Statements 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 D Information Technology Department. All capital assets are valued at historical cost and donated assets are shown at a fair market value as of the date of donation. 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 Infrastructure 20 20 - - 50 50 years years R Vehicles Equipment, Furniture & Fixtures 5 5 - - 7 15 years years 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 AF 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: Buildings, Mains & Plant 25 - 90 years Improvements 15 - 20 years Equipment 5 - 15 years Vehicles 5 - 7 years E. Budget Procedures Legally adopted budgets are prepared for the General Fund, Water/Wastewater Fund, Electric Revenue Fund, the Internal Service Fund and the following non-major special revenue funds: T Municipal Street Aid Fund, Community Development Block Grant Fund (Federal), State Department of Transportation Grants Fund (Community Transportation), Police Grant Funds, Substance Abuse Prevention Program Fund and Library Grants 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 and the Water/Wastewater Improvement and Extension Fund are sections of each utility enterprise. These sections are required by bond resolutions. 58

2016 Comprehensive Annual Financial Report for the City of Dover, Delaware Financial Section – Notes to Financial Statements 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 and the Water/Wastewater Fund. The City prepares the budget for the General Fund revenues on a 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. Budgets for the Electric Revenue Fund, Water/Wastewater Fund and Internal Service Fund are prepared on an accrual basis. Budgets are prepared under the assumption that the principal D 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.” R 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 major operating funds of the City are required to maintain an 8% minimum ending budget balance expressed as a percentage of operating revenues excluding the beginning budget balance. AF F. Major Transfers The Electric Revenue Fund and Water/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 Police Grant Fund 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. Several Special Revenue Funds represent pass-throughs of State collected revenues on behalf of the City or other State revenues provided for in the State of Delaware code. These receipts are thereafter transferred to the General Fund in support of public safety, City maintenance of State roads and other public services T 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 expenses are reflective of 59

2016 Comprehensive Annual Financial Report for the City of Dover, Delaware Financial Section – Notes to Financial Statements 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 moving average method of valuation. H. Cash and Investments D 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 date of acquisition. Investments consist of United States Government and its agencies notes and bonds, corporate bonds and common stocks and open-end mutual funds. The fair value of investments is determined by current market value. I. Accounts Receivable R 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 Water/Wastewater Fund Electric Revenue Fund $271,787 106,519 960,623 AF 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, 2016 total $40,185,529 including cash and cash equivalents of $3,738,747 and $36,446,782 in investments. Of this amount, $1,589,629 is attributed to governmental activities and $38,595,900 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 T known services rendered are billed and incorporated in the books at the end of the fiscal year. Billing information which is unreported by June 30, 2016, by the operating departments is billed and accounted for in the month the information is received. L. Bond Accounts/Issuance Costs The City recognizes bond discounts and issuance cost 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 60

2016 Comprehensive Annual Financial Report for the City of Dover, Delaware Financial Section – Notes to Financial Statements been expensed. M. Deferred outflows/inflows of resources In addition to assets, the statement of financial position will sometimes report a separate section for deferred outflows of resources. Deferred outflows of resources represent a consumption of net position that applies to a future period and will not be recognized as an outflow of resources (expense/expenditure) until then. For the City, deferred outflows of resources are reported on the government-wide statement of net position for pension. The deferred outflows of resources related to pensions are explained in Note 18. D In addition to liabilities, the statement of financial position will sometimes report a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net position that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time. The government has only one type of item, which arises only under a modified accrual basis of accounting that qualifies for reporting in this category. Accordingly, the item, unavailable revenue, is reported only in the governmental funds balance sheet. The governmental funds report unavailable revenues from property taxes, demolitions, general billings, grass cutting, R police extra-duty, and State grants. 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 pension plans and additions to/deductions from their fiduciary net position have been determined on the same basis as they are reported by the 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 pension systems report investments AF at fair value. Deferred inflows of resources related to pensions are explained in Note 18. 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 because of the City Charter, the City Code, state or federal laws, or externally imposed conditions by grantors or creditors.    T 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 City Council’s majority vote the 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 aforementioned fund balance classifications. The unassigned fund balance is 61

2016 Comprehensive Annual Financial Report for the City of Dover, Delaware Financial Section – Notes to Financial Statements 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 3) Unrestricted D Fund balances and net position are further explained in Note 7. 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 3. R 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. DEPOSITS AND INVESTMENTS A. Cash in Bank and Cash Equivalents AF Custodial credit risk – deposits. The bank collateralizes the City of Dover’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 either 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, 2016, the carrying amount of unrestricted cash totaled $8,636,841 and the bank cash balances totaled $9,509,306. The carrying amount of restricted cash totaled $3,738,747 and the bank cash balances on restricted accounts totaled $5,682,944. The restricted deposits are held by the City for bond related transactions, special purpose operating and capital grants. Fiduciary fund deposits of $3,963,643 are excluded. B. Investments T The City Council has adopted an investment policy which is reviewed every two years and updated as needed for best practices. The Pension Boards have their own distinct investment policy over the Pension Trust funds since the objectives differ from those of the City. The City investments are segregated from the Pension Trust investments for clarity. As of June 30, 2016, the City had the following investments: 62

2016 Comprehensive Annual Financial Report for the City of Dover, Delaware Financial Section – Notes to Financial Statements i. Investments Held by Third Party Custodian Investment Type Fair Value (Years) Government-Wide: Fixed income securities: U.S. Government Treasuries $ 22,963,448 2.21 U. S. Government Agencies 10,531,800 2.36 Municipal Obligations 5,522,868 2.56 Corporate Bonds 20,918,359 2.85 Certificate of Deposit 10,456,322 1.33 Fair Value of fixed income securities 70,392,797 D Portfolio weighted average maturity Other investments: Money Market Mutual Funds & Certificate of Deposit Equity Stock and Other Total Other Investments Total Government-Wide Investments 2,759,148 23,158 2,782,306 $ 73,175,103 2.34 R 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 to a maximum maturity of 10 years from the date of purchase. For most other securities, the maximum maturity is five years from the date of purchase. Short-term cash flow balances are invested up to one year. The portfolio’s weighted average maturity is 2.34 years. Credit risk: The City’s investment policy is to apply the prudent-person rule. Investments are AF 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, 2016, the City’s fixed income and short-term investments had the following risk characteristics as compared to the Standard’s & Poor’s: Authorized Investments Policy Minimum Rating Category Portfolio Ratings Percent Allocation U.S. Government N/A AA+ 32.61% U.S. Government Agency N/A AA+ 12.50% Certificates of Deposit and Short-Term A-1 Short-Term A-1 to A-1+ 14.90% Time Deposits Long-Term AA Long-Term AA- Corporate Debt Issued by a US Corporation Commercial Paper A-1 N/A Corporate Notes/Bonds A A to AAA 32.19% Repurchase Agreements Short-Term A-1 N/A Long-Term AA Registered Investment Companies (money market funds) Municipal Obligations AAAm A T Concentration of credit risk: As of June 30, 2016 Fannie Mae represented 10% of the portfolio. No other issuer exceeded 5% of the portfolio. AAAm A+ to AA 8.60% 63

2016 Comprehensive Annual Financial Report for the City of Dover, Delaware Financial Section – Notes to Financial Statements ii. Investments Held by Trustee for Post-Employment Benefits & Pensions Investment Type Fair Value (Years) Other Postemployment Benefits (OPEB) & Pension Funds (Trustee held): Corporate Bonds - OPEB Trust $ 7,359,706 0.98 Short-term corporate bond open-end mutual funds 1,392,692 0.26 Intermediate-term corporate bond open-end mutual funds 9,992,489 1.27 Long-term corporate bond open-end mutual funds 2,469,821 1.32 Fair value of fixed income investments 21,214,708 D Portfolio weighted average maturity Other investments: Domestic equity open-end mutual funds International equity open-end mutual funds Fair value of other investments Total fair value OPEB and pension funds 33,180,677 14,185,236 47,365,913 $ 68,580,620 0.96 R The Pension Trust and OPEB Trust have their investments exclusively in open-end mutual funds, with limits on its investments as follows: Category Allocation Cash & Short Term Bonds Target Percentage Employee's Plan Police Plan 7.00% 8.00% OPEB Trust 8.00% AF Non-traditional Bonds 5.00% 5.00% 5.00% Inflation Protected Bonds 5.00% 5.00% 4.00% Intermediate Term Bonds 5.00% 4.50% 5.00% Long Term Bonds 5.00% 5.00% 5.00% High Yield Bond 6.00% 5.50% 6.00% Large Cap Value 11.00% 11.00% 12.00% Large Cap Growth 14.00% 14.00% 13.00% Mid Cap 6.00% 6.00% 7.00% Small Cap 7.00% 7.00% 9.00% Real Estate Investment 8.00% 8.00% 7.00% Foreign Equity 12.00% 12.00% 10.00% Emerging Markets 9.00% 9.00% 9.00% 100.00% 100.00% 100.00% T Custodial credit risk-investments: For an investment, this 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, it is the City’s policy to have its investments held at a third party custodian in the City’s name. 64

2016 Comprehensive Annual Financial Report for the City of Dover, Delaware Financial Section – Notes to Financial Statements 4. CAPITAL ASSETS A summary of the Capital asset activity for the year ended June 30, 2016 is presented on the following page: Beginning Ending Balance Increases Decreases Balance Governmental activities: Capital assets, not being depreciated Land $ 3,903,883 $ 167,580 $ 50,934 $ 4,020,529 Construction in progress 3,464,697 2,661,908 5,587,931 538,674 Total capital assets, not being depreciated 7,368,580 2,829,488 5,638,865 4,559,203 D Capital assets, being depreciated: Buildings Furniture and fixtures Equipment Vehicles Lights Improvements other than buildings Total capital assets, being depreciated Less accumulated depreciation for: 29,196,537 826,322 7,976,344 5,214,301 641,630 45,783,237 89,638,371 1,134 - 480,706 677,365 - 7,088,986 8,248,191 1,134 - 262,947 337,323 - 1,420 602,824 29,196,537 826,322 8,194,103 5,554,343 641,630 52,870,803 97,283,738 RBuildings Furniture and fixtures Equipment Vehicles Lights Improvements other than buildings Total accumulated depreciation Total capital assets, being depreciated, net (4,451,471) (350,243) (5,620,004) (3,898,476) (486,348) (23,378,312) (38,184,854) 51,453,517 (624,955) (67,436) (377,825) (420,838) (11,036) (1,782,251) (3,284,341) 4,963,850 - - 206,297 264,156 - - 470,453 132,371 (5,076,426) (417,679) (5,791,532) (4,055,158) (497,384) (25,160,563) (40,998,742) 56,284,996 AF Governmental activities capital assets, net $ 58,822,097 $ 7,793,338 $ 5,771,236 $ 60,844,199 (continued) T 65

2016 Comprehensive Annual Financial Report for the City of Dover, Delaware Financial Section – Notes to Financial Statements (continued) Beginning Ending Balance Increases Decreases Balance Business-type activities: Electric Revenue Fund Capital assets, not being depreciated Land $ 1,458,066 $ - $ - $ 1,458,066 Construction in progress 2,364,099 2,548,017 2,646,854 2,265,262 Total capital assets, not being depreciated 3,822,165 2,548,017 2,646,854 3,723,328 Capital assets, being depreciated Buildings 17,675,949 205,465 - 17,881,414 Production 66,561,061 2,244,491 2,553,102 66,252,450 D Transmission Distribution Administration Vehicles Total capital assets, being depreciated Less accumulated depreciation for: Buildings Production 35,899,287 63,392,975 1,743,754 607,949 185,880,975 (12,576,076) (45,423,777) 1,179,220 1,822,404 40,233 86,977 5,578,790 (454,164) (2,211,544) 393,966 146,433 - 45,487 3,138,988 - 698,666 36,684,541 65,068,946 1,783,987 649,439 188,320,777 (13,030,240) (46,936,655) RTransmission Distribution Administration Vehicles Total accumulated depreciation Total capital assets, being depreciated, net Total electric revenue fund capital assets, net (14,045,341) (29,742,291) (1,536,190) (482,121) (103,805,796) 82,075,179 85,897,344 (1,228,197) (1,675,389) (111,594) (32,216) (5,713,104) (134,314) 2,413,703 178,269 283,663 - (8,493) 1,152,105 1,986,883 4,633,737 (15,095,269) (31,134,017) (1,647,784) (522,830) (108,366,795) 79,953,982 83,677,310 AF Water/Wastewater Fund Capital assets, not being depreciated Land 163,240 - - 163,240 Construction in progress 8,154,626 4,051,748 10,800,981 1,405,393 Total capital assets, not being depreciated 8,317,866 4,051,748 10,800,981 1,568,633 Capital assets, being depreciated Plant, wells, pumping stations, and storage 17,407,772 5,523,533 207,106 22,724,199 Distribution mains, hydrants, and accessories 21,182,839 1,417,096 - 22,599,935 Sewage plant mains, and pumping stations 34,628,735 4,137,350 - 38,766,085 Vehicles and equipment 5,355,410 653,841 567,410 5,441,841 Total capital assets, being depreciated 78,574,756 11,731,820 774,516 89,532,060 Less accumulated depreciation for: Plant, wells, pumping stations, and storage (7,731,966) (423,653) 107,885 (8,047,734) Distribution mains, hydrant, and accessories (6,968,793) (411,813) - (7,380,606) Sewage plant mains, and pumping stations Vehicles and equipment Total accumulated depreciation Total capital assets, being depreciated, net Total water/wastewater fund capital assets, net Business-type activities capital assets, net (13,345,967) (4,009,735) (32,056,461) 46,518,295 54,836,161 $ 140,733,505 T (864,413) (298,161) (1,998,040) 9,733,780 13,785,528 $ 16,199,231 - 450,076 557,961 216,555 11,017,536 $ 15,651,273 $ (14,210,380) (3,857,820) (33,496,540) 56,035,520 57,604,153 141,281,463 66

2016 Comprehensive Annual Financial Report for the City of Dover, Delaware Financial Section – Notes to Financial Statements Depreciation expense was charged to functions/ programs of the primary government as follows: Governmental activities: General government $ 952 Central services 89,963 Public safety 449,023 Public works 2,044,507 Library and recreation 658,451 D Financial administration Total depreciation expense - governmental activities $ In accordance with accounting principles generally accepted in the United States of America, 41,445 3,284,341 $59,728 worth of bond interest paid during the current fiscal year for the construction of projects for enterprise funds was capitalized. This amount is reduced by $1,400 of bond interest earned during the construction of the projects. R During the fiscal year there were impaired assets across the following departments/functions:  Water and Wastewater Fund assets related to well #7A totaling $59,905.  Electric Fund for the General Foods/Scott Paper Substation $32,355. AF T 67

2016 Comprehensive Annual Financial Report for the City of Dover, Delaware Financial Section – Notes to Financial Statements 5. LONG -TERM OBLIGATIONS A. Summary of Bonded Indebtedness by Issue Original Remaining Interest Maturity Arbitrage Purpose Governmental Activities 2012 General Obligation Bonds $ 3,500,000 $ 3,076,115 2.60% 6/25/13 - 5/25/19 No Construction of New Library, Street Paving Program 2014 General Obligation Bonds $ 3,660,000 $ 3,461,750 Variable = 11/14/14 - No Street and storm water infrastructure at the Series A (65% of 5/14/22 Garrison Oak Technology Park, police and fire Daily radios, and firefighter's breathing apparatus LIBOR rate) plus .666% D 2014 General Obligation Bonds Series B Business Type Activities Water/Wastewater Bonds 2000 State of Delaware - Revolving Loan Fund - Municipal Revenue $ $ 475,000 750,000 $ $ 245,000 195,545 0.90% 3.60% 7/1/15 - 7/1/16 10/1/00 - 4/1/20 No No Refunding 2003 bond issue Wastewater Pump Station # 7 - Leipsic R 2009 State of Delaware - Revolving Loan Fund - Municipal Revenue 2010 State of Delaware - Revolving Loan Fund - Municipal Revenue 2011 State of Delaware - Revolving Loan Fund - Municipal Revenue $ $ $ 5,581,059 2,404,017 765,060 $ $ $ 4,605,724 1,936,700 685,822 2.00% 12/1/12 - 12/1/31 2.47% 2.00% 4/1/12 - 10/1/30 6/1/12 - 12/1/31 No No No Pump station replacements/upgrades and sanitary sewer main relining Water quality improvements and main replacements Pump station replacements/upgrades and sanitary sewer main relining AF 2013 Revenue Bonds $ 6,125,000 $ 5,465,000 3.58% 7/1/14 - 7/1/33 Yes Water and Wastewater capital project financing, refund 2003 Series WWW bonds (Coverage ratio on Water/Wastewater Bonds requires net revenues to be at least 1.2 times the maximum annual debt service) Electric Revenue Bonds 2008 Revenue Bonds $ 22,200,000 $ 19,315,000 4.81% 7/1/09 - 7/1/33 Yes Expansion and upgrades of electric system (Coverage ratio on Electric Bonds requires net revenues to be at least 1.25 times the maximum annual debt service) B. Status as of June 30, 2016 – General Obligation Bonds Long-term indebtedness of the City of Dover consists of the following general purpose General Obligation Bonds: General General 2012 Series 2014 Series A 2014 Series B $ $ T 3,076,115 3,461,750 245,000 6,782,865 The total General Obligation Bonds outstanding amount includes $573,276 payable within one year. 68

2016 Comprehensive Annual Financial Report for the City of Dover, Delaware Financial Section – Notes to Financial Statements C. Change in Long-Term Debt The following tables summarize the debt transactions for the year ended June 30, 2016: i.General Long-Term Debt Balance Balance Payable within Item 7/01/15 Additions Reductions 6/30/16 one Year Compensated Absences $ 2,068,171 $ 1,311,922 $ 1,361,383 $ 2,018,710 $ 1,157,878 General Obligation Bonds 7,336,689 - 553,824 6,782,865 573,276 OPEB Obligation 14,557,052 1,016,030 - 15,573,082 - Net Pension Liability 24,271,046 - 6,493,753 17,777,293 - D Sub-total of General Long-Term Debt $ 48,232,958 $ 2,327,952 ii.Enterprise Funds Debt – Water/Wastewater Fund Balance $ 8,408,960 $ 42,151,950 Balance $ 1,731,154 Payable within R Item Compensated Absences Revenue Bonds-Water and Wastewater State of Delaware Municipal Revenue Bond - Wastewater State of Delaware Municipal Revenue Bond - Water OPEB Obligation Net Pension Liability Sub-total of Water/ $ 7/01/15 184,546 5,790,000 5,815,476 2,045,311 363,087 2,065,204 $ Additions 121,166 - 83,077 2,183,320 - - $ Reductions 99,850 325,000 328,385 108,611 - 49,580 $ 6/30/16 205,862 5,465,000 5,487,091 1,936,700 446,164 4,198,944 $ one Year 97,911 330,000 336,239 111,464 - - AF Wastewater Fund 16,263,624 2,387,563 911,426 17,739,761 875,614 iii.Enterprise Funds Debt – Electric Revenue Fund Balance Balance Payable within Item 7/01/15 Additions Reductions 6/30/16 one Year Compensated Absences $ 589,378 $ 297,795 $ 261,688 $ 625,485 $ 231,728 Revenue Bonds 21,680,000 - 2,365,000 19,315,000 695,000 Net Pension Liability 5,131,983 3,262,183 97,933 8,296,233 - Sub-total of Electric Revenue Fund 27,401,361 3,559,978 2,724,621 28,236,718 926,728 Sub-total of Enterprise Fund Debt 43,664,985 5,947,541 3,636,047 45,976,479 1,802,342 Grand Totals of Long-Term Debt $ 91,897,943 $ 8,275,493 T $ 12,045,007 $ 88,128,429 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, 2016. $ 3,533,496 69

2016 Comprehensive Annual Financial Report for the City of Dover, Delaware Financial Section – Notes to Financial Statements D. Debt Service Requirements The following are the debt service requirements to maturity on the City's general obligation bonds and revenue bonds. i. Governmental Activities: 2012 General Obligation 2014 General Obligation 2014 General Obligation Fiscal Bonds Bonds Series A Bonds Series B Year Principal Interest Principal Interest Principal Interest Total 2017 $ 145,276 $ 79,335 $ 183,000 $ 26,951 $ 245,000 $ 1,115 $ 680,677 2018 149,152 75,459 183,000 25,491 - - 433,102 D2019 2020 2021 2022 Total 2,781,687 - - - $ 3,076,115 $ 65,567 220,361 - - - 183,000 183,000 183,000 2,546,750 $ 3,461,750 $ 24,031 22,632 21,111 18,038 138,254 $ - - - - 245,000 $ 1,115 - - - - 3,054,285 205,632 204,111 2,564,788 $ 7,142,595 R AF T 70

2016 Comprehensive Annual Financial Report for the City of Dover, Delaware Financial Section – Notes to Financial Statements ii. Business-type Activities A. Water/Wastewater Fund D Fiscal Year 2017 2018 2019 2020 2021 $ 2000 Municipal Revenue Bonds (Wastewater) Principal 46,302 47,984 49,727 51,532 - $ Interest 6,627 4,945 3,202 1,396 - $ 2009 Municipal Revenue Bonds (Wastewater) Principal 256,208 $ 261,358 266,611 271,970 277,437 Interest 90,840 85,690 80,437 75,078 69,611 $ 2010 Municipal Revenue Bonds (Water) Principal 111,464 $ 114,392 117,397 120,481 123,646 Interest 49,825 46,897 43,892 40,808 37,643 $ 2011 Municipal Revenue Bonds (Wastewater) Principal 33,729 $ 34,955 36,225 37,541 38,905 Interest 24,395 23,170 21,900 20,584 19,219 $ 2013 Revenue Bonds Principal 330,000 $ 340,000 355,000 360,000 375,000 Interest 177,694 167,643 157,219 146,493 135,469 2022 2023 2024 2025 2026 2027 2028 2029 - - - - - - - - R - - - - - - - - 283,013 288,702 294,505 300,424 306,463 312,623 318,906 325,316 64,035 58,346 52,543 46,624 40,585 34,425 28,142 21,732 126,895 130,228 133,649 137,160 140,764 144,461 148,257 152,151 34,395 31,061 27,640 24,129 20,526 16,828 13,033 9,138 40,318 41,783 43,302 44,875 46,505 48,195 49,946 51,761 17,806 16,341 14,823 13,250 11,619 9,930 8,178 6,364 385,000 395,000 410,000 215,000 220,000 225,000 235,000 245,000 124,069 112,369 100,294 90,919 84,256 77,106 69,281 60,269 AF 2030 - - 331,855 15,193 156,148 5,141 53,642 4,483 255,000 50,269 2031 - - 338,526 8,522 79,607 1,039 55,592 2,534 265,000 39,869 2032 - - 171,807 1,718 - - 28,548 514 275,000 29,069 2033 - - - - - - - - 285,000 17,869 2034 - - - - - - - - 295,000 6,084 Total $ 195,545 $ 16,170 $ 4,605,724 $ 773,521 $ 1,936,700 $ 401,995 $ 685,822 $ 215,110 $ 5,465,000 $ 1,646,241 71 T

2016 Comprehensive Annual Financial Report for the City of Dover, Delaware Financial Section – Notes to Financial Statements B. Electric Revenue Fund Fiscal 2008 Revenue Bonds Business-type Year Principal Interest Activities 2017 $ 695,000 $ 901,329 $ 2,725,430 2018 730,000 865,704 2,724,756 2019 765,000 831,580 2,730,209 2020 800,000 798,706 2,726,609 2021 840,000 763,856 2,682,807 2022 880,000 726,756 2,684,309 D 2023 2024 2025 2026 2027 2028 925,000 970,000 1,015,000 1,065,000 1,120,000 1,175,000 686,694 644,056 599,394 551,928 501,400 446,125 2,687,547 2,692,836 2,488,800 2,489,672 2,491,995 2,493,896 R 2029 2030 2031 2032 2033 2034 Total 1,230,000 1,290,000 1,355,000 1,420,000 1,485,000 1,555,000 386,000 323,000 256,875 187,500 114,875 38,875 2,489,760 2,486,761 2,404,595 2,116,188 1,904,777 1,896,993 $ 19,315,000 $ 9,624,653 $ 44,917,940 AF T 72

2016 Comprehensive Annual Financial Report for the City of Dover, Delaware Financial Section – Notes to Financial Statements 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 $ 90,699 reported in the non-major special revenue funds. Grants-public safety These represent the Police grants, ERLSP 612,470 D Other Purposes grant and Substance Abuse Prevention grant in the special revenue type funds. These represent all other funds reported in the special revenue type, except the grants reserved for capital construction and public safety. Also included is the interest from an 229,559 R Total Restricted Net Position Business Type Activities endowment from Mary Elizabeth Paton and the verizon reserve. Net restricted position for construction purposes - expendable $ 932,728 AF Water/Wastewater Restrictions on investments $ 3,522,043 imposed by bond covenants Electric Restrictions on investments 33,504,484 imposed by bond covenants Total Restricted Net Position $ 37,026,527 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 Paton library endowment. T 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 73

2016 Comprehensive Annual Financial Report for the City of Dover, Delaware Financial Section – Notes to Financial Statements 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 and the City’s matching funds for grant related projects. Also, included are donated assets to be used for law enforcement purposes. 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 D aforementioned 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. The composition of the City fund balances is as follows: R Fund balances: Nonspendable: Inventory & Prepaids Patronage Stock Library Endowment $ General Fund 173,540 16,594 5,000 Governmental $ Other Funds 350 - - $ Total 173,890 16,594 5,000 AF Subtotal Nonspendable: 195,134 350 195,484 Restricted for: Library Endowment Interest 1,844 - 1,844 Verizon cable franchise 171,925 - 171,925 Highway resurfacing - 90,699 90,699 ERLSP - 100 100 Realty Transfer Tax - 1,177 1,177 CDBG - 2,013 2,013 Neighborhood Stabilization Program - 15,325 15,325 Substance Abuse Prevention - 99,453 99,453 Municiple Street Aid - 100 100 Library Grants - 37,175 37,175 Police Grants - 512,917 512,917 Subtotal Restricted for: 173,769 758,959 932,728 Committed to: Contingency Parkland Subtotal Committed to: Assigned to: Capital Assets Subtotal Assigned to: Unassigned Total fund balances $ 732,833 326,364 1,059,197 2,735,602 2,735,602 4,995,522 9,159,224 T$ - - - 759,309 - - - $ 732,833 326,364 1,059,197 2,735,602 2,735,602 4,995,522 9,918,533 74

2016 Comprehensive Annual Financial Report for the City of Dover, Delaware Financial Section – Notes to Financial Statements 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 is in charge of 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 June 24 D Taxes due and payable at par Penalty of one and one half percent starts Lien established on property for property taxes Tax sales of property with unpaid taxes As of June 30, 2016 there were no material delinquent taxes. July 31 August 1 July 1 2 years from date of billing R AF T 75

2016 Comprehensive Annual Financial Report for the City of Dover, Delaware Financial Section – Notes to Financial Statements 9. INTERFUND RECEIVABLES, PAYABLES AND TRANSFERS The composition of interfund balances as of June 30, 2016 is as follows: A. Due to/from other funds – Charges and Allocations Due to/from Other Funds- charges and allocations Receivable Fund Payable Fund Amount General Fund Non-Major Governmental Funds $ 75,046 Water/ Wastewater Fund 169,339 D Water/ Wastewater Fund Electric Fund Non-Major Governmental Funds Electric Revenue Fund General Fund General Fund General Fund 370,521 325 2,906 600 R Total 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. $ 618,737 AF B. Interfund Transfers Transfers In - Transfers Out General Fund Non-Major Governmental Funds 3,489,821 Water/ Wastewater Fund 850,000 Electric Revenue Fund 10,000,000 Total $ 14,339,821 Transfers are generally made for the purpose of providing operating capital or debt service subsidies to the receiving fund in accordance with City policy. The General Fund transfer is the net of cash transfers to the General Fund from the utility funds $10,850,000 and a transfer of the Net Pension Liability. 10. RENTAL INCOME T The City currently has two lease agreements at the Garrison Oak Technical Park (GOTP) that are included in miscellaneous revenue in the General Fund. The first lease is with LS Power – White Oak Solar Energy LLC, which generated $61,469 in rental income and the second lease is with Garrison Energy Center which generated $32,390 in rental income. The City’s Electric Revenue Fund owns a professional office building which houses the City’s 76

2016 Comprehensive Annual Financial Report for the City of Dover, Delaware Financial Section – Notes to Financial Statements Customer Service, Finance and Information Technology Departments. At June 30, 2016, the City had leases with three tenants for the remaining space available. Lease revenue is $238,862 in the Electric Revenue Fund consisting of office space rental of $146,565, substation rental of $30,000 and pole attachment rentals of $62,297. The City maintains several water tower leases for a group of telecommunications companies. These are recorded as revenue of the Water/Wastewater Fund and total $337,989 in the current fiscal year. 11. MATERIAL COMMITMENTS DA. The City is the guarantor on one loan for the Dover Fire Department, a separate entity from the City of Dover. The City also budgets monies to assist the volunteer fire company with payments on firefighting apparatus. The current fiscal year includes $145,614 in expenditures for Ladder #1 in the Governmental Capital Projects Fund budget. B. The City entered into a three-year management contract with The Energy Authority effective July 1, 2016 to provide a market-based approach for power supply management. The Energy Authority manages energy purchases and utilizes the City’s generating assets to provide a R level of rate stability as necessary to mitigate the effects of rising and volatile energy prices. The Energy Authority also provides oversight of the plant operator contract and monitors their performance. Additional tasks The Energy Authority has contracted with the City is (1) 2016 Integrated Resource Planning Services and (2) Reactive Revenue Requirement Analysis and Filing Services. C. The City also entered into a management contract with North American Energy Services (NAES) to operate and maintain the generating assets of the electric utility in May 2006. The AF City extended the contract with NAES through June 30, 2020. The City has incorporated the budgets and financial activity of the plant 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 fiscal year 2016 annual cost for management and estimated incentives are $800,696 and is included in the plant-operating budget. D. 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 of the loans is paid monthly from rental receipts the Partnership receives from its current tenants on the properties. T 77

2016 Comprehensive Annual Financial Report for the City of Dover, Delaware Financial Section – Notes to Financial Statements 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 D 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 for financial hedges in determining if they would be beneficial to mitigate market and credit risk. R 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 Standard & Poor’s or Baa2 as rated by Moody’s). 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 through the use of collateral thresholds, credit limits, maximum nominal exposure and term limitations. A collateral threshold is the amount of unsecured credit granted AF 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. T 78

2016 Comprehensive Annual Financial Report for the City of Dover, Delaware Financial Section – Notes to Financial Statements Counterparty Credit Risk (in 1,000’s) D C o unt e rpa rt y A EP Energy P artners, Inc. B arclays B ank, P LC C o unt e rpa rt y o r G ua ra nt o r C re dit R a t ing BBB A- C o unt e rpa rt y T hre s ho ld $ 10,000 $ 15,000 Line A v a ila bilit y $ 9,225 $ 15,000 M a xim um A m o unt o f Lo s s due t o C re dit R is k w/ o R e s pe c t t o C o lla t e ra l ( $ ) $ 775 $0 C o lla t e ra l D e s c ript io n No Co llateral if expo sure under specified thresho ld No Co llateral if expo sure under specified thresho ld B P Energy Co mpany R Eastern Sho re Natural Gas Co mpany EDF Trading No rth A merica, LLC Exelo n Generatio n Co mpany, LLC A- NR BBB+ BBB $ 15,000 No thresho ld $ 18,000 $ 18,000 $ 14,641 $0 $ 18,000 $ 17,445 $ 359 $ 11 $0 $ 555 No Co llateral if expo sure under specified thresho ld No Co llateral if expo sure under specified thresho ld No Co llateral if expo sure under specified thresho ld No Co llateral if expo sure under specified thresho ld No Co llateral if expo sure under specified thresho ld in the event o f AF Co nstellatio n Energy Services, Inc. NR No thresho ld $0 $0 po tential default, perfo rmance fro m co unter party is required No Co llateral if expo sure under M acquarie Energy, LLC A $ 15,000 $ 10,660 $ 4,340 specified thresho ld Unlimited do llars are guaranteed by M o rgan Stanley Capital Gro up, Inc BBB+ $ 10,000 $ 8,340 $ 1,660 M o rgan Stanley Up to $ 15,000 is guaranteed by NextEra NextEra Energy P o wer M arketing, LLC BBB+ $ 10,000 $ 5,010 $ 4,990 Energy Capital Ho ldings which is guaranteed by NextEra Energy, Inc. No Co llateral if expo sure under NJR Energy Services Co mpany NR No thresho ld $0 -$ 909 specified thresho ld No Co llateral if expo sure under P SEG Energy Reso urces & Trade, LLC BBB+ No thresho ld $0 $0 specified thresho ld No Co llateral if expo sure under Sequent Energy M anagement, L.P . BBB+ $ 20,000 $ 20,000 $0 specified thresho ld 79 T

2016 Comprehensive Annual Financial Report for the City of Dover, Delaware Financial Section – Notes to Financial Statements 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 Blue Cross Blue Shield of Delaware. Pre-determined premiums consisting of the City and employee contributions are subsequently paid out to the State of Delaware. B. Workers’ Compensation Fund – Self-Insurance D 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 the records. The City maintains a fund balance to cover any incurred but not reported claims. AMI Risk Consultants completed an updated valuation in fiscal year 2014. As of June 30, 2016, there is $547,958 reserved for open claims in this fund. An appropriate umbrella policy for the R excess coverage has been purchased and is in effect as of June 30, 2016. Workers’ Compensation activity is as follows: Claims payable beginning of year Claims incurred $ 2016 286,426 526,215 $ 2015 515,432 98,665 AF Payment of claims (264,683) (327,671) Claims payable end of year $ 547,958 $ 286,426 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 T or retirement, an employee is paid for accumulated vacation days. The City also grants one paid sick day per month to all employees with the exception of employees covered by the International Brotherhood of Electric Workers (IBEW) contract. The IBEW employees are granted eleven sick days per year. The City of Dover follows a terminal leave policy which varies with each of the four 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. 80

2016 Comprehensive Annual Financial Report for the City of Dover, Delaware Financial Section – Notes to Financial Statements 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 sick 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 D 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 OPEB Trust is a single-employer defined benefit plan. The OPEB Trust provides retirement medical coverage to pensioners and their eligible dependents in the City of Dover defined R benefit and defined contribution pension plans. 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 three elected by plan members, two Council members appointed by the Council President, the City Controller/Treasurer, 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. AF 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 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 at June 30, 2016: Retirees and beneficiaries receiving benefits 272 Terminated plan members entitled to but not yet receiving the benefits 13 Active plan members 325 Total T 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, 610 81

2016 Comprehensive Annual Financial Report for the City of Dover, Delaware Financial Section – Notes to Financial Statements 2013 through June 30, 2017.  The American Federation of State, County, and Municipal Employees (AFSCME), Council 81 contract period is October 30, 2014 through June 30, 2017.  The Fraternal Order of Police Lodge #15 (FOP) union contract period is July 1, 2015 through June 30, 2018.  The Dover Organization of Employees (DOE) union just recently completed negotiations for a new contract period which began July 1, 2015 through June 30, 2018. The eligibility provisions for early retirement are as follows: D Benefits for Civilians: SUMMARY OF PRINCIPAL PLAN PROVISIONS As of JULY 1, 2015 A. Covered Groups: Full-time DOE (formerly IUE), IBEW, AFSCME and non-union employees and their dependents are covered. R 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 AF (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 of members eligible for an unreduced pension upon death or for DOE and non-union members hired prior to July 1, 1994, completion of 10 years of service. T 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 82

2016 Comprehensive Annual Financial Report for the City of Dover, Delaware Financial Section – Notes to Financial Statements SUMMARY OF PRINCIPAL PLAN PROVISIONS (Continued) 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. D 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 R 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 AF 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 rate for 2015 was $104.90; for 2016 the premiums are $104.90 for the standard rate and $121.80 for the premium rate. Spouses are not eligible for the reimbursement. Eligible retirees are: 1. Non-union 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. T 83

2016 Comprehensive Annual Financial Report for the City of Dover, Delaware Financial Section – Notes to Financial Statements SUMMARY OF PRINCIPAL PLAN PROVISIONS (Continued) Benefits for Police Officers: A. Covered Groups: Full-time FOP employees and their dependents are covered. Only provisions for members hired on 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. D 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. R 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 AF 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 rate for 2015 was $104.90; for 2016 the premiums are $104.90 for the standard rate & $121.80 for the premium rate. Eligible retirees are members who retired prior to September 30, 2006. Employer Contributions: T The City of Dover funds the other postemployment 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: 84

2016 Comprehensive Annual Financial Report for the City of Dover, Delaware Financial Section – Notes to Financial Statements General Government $ 3,291,717 Water/Wastewater Fund 160,831 Electric Revenue Fund 115,196 Total Benefit Provided $ 3,567,744 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 D 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. Annual OPEB Cost and Net OPEB Obligation/ (Asset) The City’s annual OPEB cost is calculated based on the Annual Required Contribution (ARC) of the employer, an amount actuarially determined in accordance with GAAP. The ARC R represents a level of funding that, if paid on an ongoing basis, is projected to cover normal cost each year and amortize any unfunded actuarial liabilities over a period of thirty years. Amounts “required” but not actually set aside to pay for these benefits are accumulated as part of the net OPEB obligations. The following table shows the components of the City’s annual OPEB cost for the year, the amount actually contributed to the plan, and the City’s net OPEB obligation: Water/ Wastewater AF Governmental Fund Electric Fund Total Activities Activities Activities Annual Required contribution $ 5,125,687 $ 4,476,281 $ 248,111 $ 401,295 Interest on OPEB obligation 743,485 946,208 23,601 (226,324) Adjustment to annual required contribution (875,910) (1,114,742) (27,804) 266,636 Annual OPEB Cost 4,993,262 4,307,747 243,908 441,607 Employer Contributions (3,567,744) (3,291,717) (160,831) (115,196) Increase/(decrease) in net OPEB obligation 1,425,518 1,016,030 83,077 326,411 Net OPEB obligation (asset) at beginning of year 11,438,231 14,557,052 363,087 (3,481,908) Net OPEB obligation (asset) at end of year $ 12,863,749 $ 15,573,082 $ 446,164 $ (3,155,497) The City’s annual OPEB cost, the percentage of annual OPEB cost contributed to the plan, and the net OPEB obligation thru fiscal year 2016 are as follows: Fiscal Year Ended June 30 2016 2015 2014 2013 $ $ $ $ Annual OPEB Cost 4,993,262 3,658,108 5,779,249 5,948,117 71.5% 88.0% 67.6% T Percentage of Annual OPEB Cost Contributed 145.0% Net OPEB Obligation $ 12,863,749 $ 11,438,231 $ 13,085,130 $ 12,392,061 85

2016 Comprehensive Annual Financial Report for the City of Dover, Delaware Financial Section – Notes to Financial Statements Funded Status and Funding Progress As of June 30, 2016, the most recent GASB 45 Interim Actuarial Valuation, the plan was 33.7% funded. The actuarial accrued liability for benefits was $66.6 million, and the actuarial value of assets was $22.4 million, resulting in an unfunded actuarial accrued liability (UAAL) of $44.2 million for the primary government. The covered payroll (annual payroll of active employees covered by the plan) was $17.7 million, and the ratio of the UAAL to the covered payroll was 250.1%. In 2009 the City elected a ten-year phase-in plan to achieve the appropriate funding level, due to this change, the phase-in has been eliminated in determining the interest rate assumption used for the liabilities and costs under GASB 45. The City continues to work with its collective bargaining units for alternative benefit plan options to reduce the Actuarial Accrued Liability (AAL) and its ARC. D The schedules of funding progress, presented as required supplementary information (RSI) following the notes to the financial statements, present multiyear trend information regarding whether the actuarial values of plan assets are increasing or decreasing over time relative to the AALs for benefits. Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and assumptions about the probability of occurrence of events far into the future. Examples include R assumptions about future employment, mortality, and the healthcare cost trend. Amounts determined regarding the funded status of the plan and the actuarially determined contributions of the employer are subject to continual revision as actual results are compared with past expectations and new estimates are made about the future. Actuarial Methods and Assumptions Projections of benefits for financial reporting purposes are based on the substantive plan (the plan as understood by the employer and the OPEB plan members) and include the types of AF benefits provided at the time of each valuation and the historical pattern of sharing of benefit costs between the employer and plan members to that point. The actuarial methods and assumptions used include techniques that are designed to reduce the effects of short-term volatility in actuarial accrued liabilities and the actuarial value of assets, consistent with the long- term perspective of the calculations. The Projected Unit Credit Cost Method was used to determine the Annual Required Contribution for the June 30, 2016 interim actuarial valuation. Investments are valued at market rates. The funded discount rate is 6.5%. Adjustments have been made to the City’s July 1, 2015 Actuarial Accrued Liability (AAL), normal cost and benefit payments for the actual premium rate increases from 2015/16 to 2016/17 which caused a portion of the City’s liabilities to be higher than expected. The inclusion of implicit subsidy also increased the City’s liability by 15.3%. According to the T new Actuarial Standards of Practice (ASOP) number 6, that is effective for actuarial valuations with measurement dates on or after March 31, 2015, an implicit subsidy exists for health plans that commingle the experience of active participants and retirees in setting their premium rates and the non-Medicare retirees premium rates do not vary by age. Implicit subsidies for pre- Medicare benefits is the additional employer liabilities when the inherently higher health care costs for retired employees are not directly reflected in the determination of the premium rates. 86

2016 Comprehensive Annual Financial Report for the City of Dover, Delaware Financial Section – Notes to Financial Statements 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 firm for the Deferred Compensation Plan with Nationwide Retirement Solutions. In May 1994, the City offered to employees the 457 Deferred Compensation Plan as their D 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 $7,514,530 (market value) as of June 30, 2016, with 133 active employees contributing $526,153. The Nationwide plan has assets of $3,089,691 (market value) as of June 30, 2016 with 17 contributing active employees. 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 R the employer and employee benefits 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, 2016, there are 334 employees eligible to enroll in the 457 Deferred Compensation Plan. AF 17. RETIREMENT PLANS The City participates and/or manages four retirement plans on behalf of its employees. Three of the pension plans 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 pension plan. During fiscal year 2016 the total wages were $21.1 million and the total pensionable wages were $19.5 million for all full-time employees. The number of employees eligible for pension benefits as of June 30, 2016 is 334. 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 choice for pension benefits. The contribution and funding requirements of the plan are both established and amended by the T City. 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. Quarterly statements are mailed to each participant by RC. All administration fees are borne by the participants. The City provides a 3% match of the employees required contribution to the 401a Plan, and up to an additional 3% to the 401a Plan for a potential total contribution of 6%, if the employee contributes up to an additional 3% to their 457 Plan (see note 17 – Deferred Compensation Plan). 87

2016 Comprehensive Annual Financial Report for the City of Dover, Delaware Financial Section – Notes to Financial Statements The Dover Organization of Employees (DOE) union contract renewed effective July 1, 2015 through June 30, 2018. The new contract changed the mandatory minimum employee contribution (MMEC) as well as the City’s minimum matching contribution to the 401a Plan from 3% to 4%. The change in the City’s matching contribution will increase the maximum City matching contribution from 6% to 7%. These changes in contribution percentages for both the employee and employer became effective March 27, 2016. The 401a Plan and 457 Plan contributions are calculated on base wages plus on-call pay, pay adjustments, and scheduled overtime. 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. D 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, 2016, there were 127 full-time employees enrolled in the 401a plan. The City contributed a total of $309,335 on wages of approximately $5.9 million. Employees contributed R $183,108 to the 401a Money Purchase Plan. The market value of the 401a plan assets totaled $4,953,448 as of June 30, 2016. 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 AF 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. T Separate pension fund financial statements for each plan have not been issued; accordingly, they are presented as required by GASB Statement No. 34, as follows: 88

2016 Comprehensive Annual Financial Report for the City of Dover, Delaware Financial Section – Notes to Financial Statements The City of Dover, Delaware Combining Statement of Pension Trust Fund Net Position June 30, 2016 Police General Pension Pension Totals ASSETS: Cash and cash equivalents $ 550,163 $ 1,754,686 $ 2,304,849 Investments at fair value - Mutual Funds 11,674,522 33,943,851 45,618,373 Total Assets 12,224,685 35,698,537 47,923,222 D Net position held in trust for pension benefits The City of Dover, Delaware $ 12,224,685 Combining Statement of Changes in Pension Trust Fund Net Position For the Year Ended June 30, 2016 $ 35,698,537 $ 47,923,222 R Additions Net investment income City's contribution - payroll based City's contribution - lump sum $ Police Pension 279,303 - 676,500 $ General Pension 850,131 2,246,709 842,700 $ Totals 1,129,434 2,246,709 1,519,200 AF Employee contribution - 202,340 202,340 State contributions 415,128 - 415,128 Other 1,650 - 1,650 Total Additions to Net Position 1,372,581 4,141,880 5,514,461 Deductions Benefit payments 1,527,910 3,718,225 5,246,135 General administration 4,831 16,040 20,871 Total Deductions From Net Position 1,532,741 3,734,265 5,267,006 Change in net position (160,160) 407,615 247,455 Net Position - Beginning 12,384,845 35,290,922 47,675,767 Net Position - Ending $ 12,224,685 $ 35,698,537 $ 47,923,222 T 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 each plan. Investment management and consultant fees are paid from the Pension Trust Funds. All actuarial costs are paid from other City funds. 89

2016 Comprehensive Annual Financial Report for the City of Dover, Delaware Financial Section – Notes to Financial Statements i. 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, 2016 there are 47 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 ½% of their average earnings for each year of continuous service. D The maximum benefit is 62 ½% 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 R 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 AF 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 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 T The City intends to continue to fund the actuarial determined contributions (ADC) as provided for in the actuarial valuation. The current year contributions are based on the parameters set forth in the interim actuarial valuation report as of June 30, 2016 in accordance with GASB Statement 67. 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. In addition, the City has adopted in its financial policies to have any surplus in the budget balances of the prior year be transferred to the retirement benefit plans to further reduce the net pension liability. The State Contributes to the pension fund on behalf of the City based on 1) an allocation to the 90

2016 Comprehensive Annual Financial Report for the City of Dover, Delaware Financial Section – Notes to Financial Statements City based on a 0.25% surcharge on insurance policies issued in the state and the number of officers employed and 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, 2016, the State contributed $415,128. The ADC conforms to the entry age normal cost method as defined in GASB Statement 67. The City has interim valuations completed each year between the required biennial valuations to monitor the progress of the net pension liability. The City’s actuary is Nyhart of Indianapolis, Indiana. The ADC is being amortized using a level dollar method. The amortization period is 9 years for the 2016 fiscal year and will decline by 1 each year until 1 year. Total contributions to the plan for the fiscal year ending June 30, 2016 are anticipated to be D $1.01 million, which would be 90.2% of the ADC. Net Pension Liability As of June 30, 2016, the most recent measurement date for the actuarial valuation, the plan was 63.05% funded. The total pension liability for benefits was $19.4 million, and the fiduciary net position was $12.3 million, which resulted in a net pension liability (NPL) of $7.2 million for the primary government. There are no active officers, therefore there is no covered payroll or R 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, prepared as of June 30, 2016, are presented below: Actuarial Methods and Significant Assumptions Interim valuation date Actuarial cost method as of June 30, 2016 Entry Age Normal AF 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 none, no remaining active participants Automatic Cost of living (retirees) 2.0% Mortality RP-2000 Healthy Annuitant Mortality with Generational improvements using Scale AA Changes in Actuarial Assumptions or Methods T 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, 2016 are summarized in the following table: 91

2016 Comprehensive Annual Financial Report for the City of Dover, Delaware Financial Section – Notes to Financial Statements Police Pension Fund Long-Term Expected Rate of Return Long-Term Target Expected Real Asset Class Allocation* Real Rate of Return Cash 4.00% 0.50% Fixed Income 29.00% 2.30% Stocks 59.00% 6.50% Short-term Investments 0.00% 0.00% D Real Estate Alternatives Long-Term Expected Rate of Return Police Pension Fund 8.00% 0.00% Changes in Net Pension Liability 5.60% 0.00% 6.50% R Changes in Net Pension Liability Balances as of June 30, 2015 Changes for the year: Increase (Decrease) Total Pension Plan Fiduciary Net Pension Liability (a) Net Position (b) $ 20,471,000 $ 12,384,845 Liability (a) - (b) 8,086,155 AF Interest on total pension liability 1,280,958 - 1,280,958 Effect of economic/demographic gains or losses (836,177) - (836,177) Effect of assumptions changes or inputs - - - Benefit payments (1,527,910) (1,527,910) - Employer contributions - 1,093,278 (1,093,278) Net investment income - 279,303 (279,303) Administrative expenses - (4,831) 4,831 Balances as of June 30, 2016 $ 19,387,871 $ 12,224,685 $ 7,163,186 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 T 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. 92

2016 Comprehensive Annual Financial Report for the City of Dover, Delaware Financial Section – Notes to Financial Statements 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. 1% Current 1% Decrease Discount Rate Increase 5.50% 6.50% 7.50% Net pension liability $ 9,138,112 $ 7,163,186 $ 5,370,836 D Pension Expense, Deferred Outflows/Inflows of Resources Related to Pensions For the year ended June 30, 2016, the City recognized pension expense of $(124,768) calculated in the following chart: July 1, 2015 to R Pension Expense Interest on total pension liability Projected earnings on pension plan investments Administrative expenses Member contributions Current period recognition of deferred outflows/(inflows) of resources Differences between expected and actual experience June 30, 2016 $ 1,280,958 (790,732) 4,837 - (836,177) AF Differences between projected and actual earnings on plan investments 216,346 Pension Expense $ (124,768) General Employee Pension Expense As of June 30, 2016, the City reported deferred outflows of resources related to pension from the following sources: Police Pension Plan Deferred Outflows of Resources Net difference between projected and actual earnings $ 751,321 Total Deferred Outflows of Resources $ 751,321 T The City did not report deferred inflows of resources for the period ending June 30, 2016. Amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows: 93

2016 Comprehensive Annual Financial Report for the City of Dover, Delaware Financial Section – Notes to Financial Statements Police Pension Plan Fiscal Year Ending June 30: 2017 $ 216,346 2018 216,346 2019 216,346 2020 102,285 2021 - Thereafter - ii. City of Dover General Employee Pension Plan D 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 of continuous service. As of the interim valuation date, June 30, 2016, 107 employees and 205 retirees participate in the plan. The R General Employee Pension Plan is comprised of the following: Retired and beneficiaries currently receiving benefits Active employees Fully Vested Non-Vested Deferred vested 205 84 23 19 AF 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, 2016, gross payroll earnings of $5.5 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 he/she attains 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 T 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 his 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 94

2016 Comprehensive Annual Financial Report for the City of Dover, Delaware Financial Section – Notes to Financial Statements 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. A participant is vested in the pension plan after completing 10 years of continuous service, with survivor benefits commencing when the employee would have attained the age of 65. 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 Employee’s Pension plan to new hires. D 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 R consulting services to the Board. 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. In addition, the City has adopted in its AF financial policies to have any surplus in the personnel related budget balances of the prior year be transferred to the retirement benefit plans to further reduce the net pension obligation. 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, Schedule of City Contributions, and a Schedule of Investment Returns are presented as Required Supplementary Information (RSI) following the notes to the financial statements. Net Pension Liability As of June 30, 2016, the most recent measurement date for the interim actuarial valuation, the plan was 60.70% funded. The total pension liability for benefits was $58.8 million, and the fiduciary net position was $35.7 million, which resulted in a net pension liability (NPL) of $23.1 million for the primary government. The covered payroll (annual payroll of active employees T covered by the plan) was $5.5 million and the ratio of the NPL to the covered payroll was 419.83%. Key methods and assumptions used in calculating the total pension liability in the interim actuarial valuation, prepared as of June 30, 2016, are presented below: 95

2016 Comprehensive Annual Financial Report for the City of Dover, Delaware Financial Section – Notes to Financial Statements Actuarial Methods and Significant Assumptions Interim Valuation date as of June 30, 2016 Actuarial cost method Entry Age Normal Amortization method Level dollar Amortization period Closed; smooths gains and losses over a 5-year period Asset valuation method Fair market value Actuarial Assumptions: Investment rate of return 6.5% (See supplementary schedule in RSI) Discount rate 6.5% Projected salary increases 3.0% D Includes inflation at Mortality Changes in Actuarial Assumptions or Methods 2.5% RP-2000 Healthy Annuitant Mortality with Generational improvements using Scale AA The long term expected rate of return on pension plan investments was determined using a R 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, 2016 are summarized in the following table: AF General Employee Pension Plan Long-Term Expected Rate of Return Long-Term Target Expected Real Asset Class Allocation* Real Rate of Return Cash 4.50% 0.50% Fixed Income 28.50% 2.41% Stocks 59.00% 6.47% Real Estate 8.00% 5.56% Long-Term Expected Rate of Return T 6.50% 96

2016 Comprehensive Annual Financial Report for the City of Dover, Delaware Financial Section – Notes to Financial Statements 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. D Changes in Net Pension Liability Balances as of June 30, 2015 Changes in Net Pension Liability Increase (Decrease) Total Pension Plan Fiduciary Net Pension Liability (a) Net Position (b) Liability (a) - (b) $ 58,673,000 $ 35,290,922 $ 23,382,078 R Changes for the year: Service cost Interest on total pension liability Effect of economic/demographic gains or losses Effect of assumptions changes or inputs Benefit payments Employer contributions Member contributions 401,218 3,718,982 (267,154) - (3,718,225) - - - - - - (3,718,225) 3,089,409 202,340 401,218 3,718,982 (267,154) - - (3,089,409) (202,340) AF Net investment income - 850,131 (850,131) Administrative expenses - (16,040) 16,040 Balances as of June 30, 2016 $ 58,807,821 $ 35,698,537 $ 23,109,284 Sensitivity Analysis 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. 1% Current 1% Decrease Discount Rate Increase Net pension liability 5.50% $ 30,186,575 T 6.50% $ 23,109,284 Pension Expense, Deferred Outflows/Inflows of Resources Related to Pensions For the year ended June 30, 2016, the City recognized pension expense of $2,589,839 as calculated in the following chart: 7.50% $ 16,792,226 97

2016 Comprehensive Annual Financial Report for the City of Dover, Delaware Financial Section – Notes to Financial Statements General Employee Pension Expense July 1, 2015 to Pension Expense June 30, 2016 Service cost $ 401,218 Interest on total pension liability 3,718,982 Administrative expenses 16,040 Member contributions (202,340) Projected earnings on pension plan investments (2,279,528) Current period recognition of deferred outflows/(inflows) of resources Differences between expected and actual experience (184,089) D Differences between projected and actual earnings on plan investments Changes of assumptions Pension Expense At June 30, 2016, the City reported deferred outflows of resources and deferred inflows of resources related to pension from the following sources: $ 576,223 543,333 2,589,839 R Deferred Outflows of Resources Changes in assumptions Net difference between projected and actual earnings Total Deferred Outflows of Resources $ $ General Employee Pension Plan 869,334 2,014,549 2,883,883 AF Deferred Inflows of Resources Net differences between expected and actual experience $ (388,046) 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: 2017 $ 935,467 2018 765,054 2019 2020 2021 Thereafter T 509,434 285,881 - - 98

2016 Comprehensive Annual Financial Report for the City of Dover, Delaware Financial Section – Notes to Financial Statements iii. Delaware State Police Pension Plan Plan Description and Contribution Information The City participates in the “County and Municipal Police and Firefighters’ Pension Plan” (the Plan) is 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). D 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. R As of June 30, 2016 city membership in this plan is comprised of the following: Retired and beneficiaries currently receiving benefits Active employees: Fully Vested 5 years Non-Vested 53 56 46 AF The following are brief descriptions of the Plan. For a more complete description, please refer to the DPERS CAFR on the web at http://accounting.delaware.gov/2015cafr.pdf. County and Municipal Police and Firefighter’s Pension Plan a. Plan Description and Eligibility The Plan covers police officers and firefighters employed by a county or municipality of the State that have joined the Plan. b. Service Benefits 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 in excess of 20 years. For this plan, final average monthly compensation is the monthly average of the highest three consecutive years of compensation. c. Vesting Five years of credited service. d. Retirement T 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. 99

2016 Comprehensive Annual Financial Report for the City of Dover, Delaware Financial Section – Notes to Financial Statements e. 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. D f. 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. g. Contributions: R Employer – Determined by Board of Pension Trustees. Employer contributions were 13.8%, 14.2% and 15.5% of earnings for the Fiscal Year 2016, 2015 and 2014 respectively. The City’s contributions to the plan for years ended June 30, 2014, 2015 and 2016 were $990,588, $933,750 and $977,587 respectively and were equal to the required contributions for each year. Total eligible full-time wages covered by the State plan were $7.1 million this fiscal year. Member – 7% of compensation. AF Basis of Presentation The Schedules of Employer Allocations and Pension Amounts by Employer (collectively, the Schedules) present amounts that are considered elements of the financial statements of DPERS or its participating employers. Accordingly, they do not purport to be a complete presentation of the financial position or changes in financial position of DPERS or the participating employers. 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 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 T 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 9.9607%. Pension Liabilities, Pension Expense and Deferred Outflows of Resources and Deferred Inflows of Resources related to Pensions At June 30, 2015, the City reported a net pension asset of $524,958 for its proportionate share of the collective net pension asset. The net pension asset was measured as of June 30, 2015, and the total pension liability used to calculate the net pension asset was determined by an actuarial valuation as of that date. The City’s proportion of the net pension asset was based on 100

2016 Comprehensive Annual Financial Report for the City of Dover, Delaware Financial Section – Notes to Financial Statements the percentage of actual employer contributions. The components of the proportionate share of the net pension liability (asset) of the Plan as of June 30, 2015 were as follows (Dollar values expressed in thousands): (3) (1) (2) The Employers' Total Plan fiduciary proportionate proportionate proportionate share of the net share of the share of the net pension liability Year pension liability position (asset) (1)-(2) 2015 $ 26,679 $ 27,204 $ (525) D For the year ended June 30, 2015, the City recognized pension expense of $707,506. As of June 30, 2016 the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Delaware State Police Pension RDeferred Outflows of Resources Differences between expected and actual experience City contributions sebsequent to the measurement date Total Deferred Outflows of Resources Deferred Inflows of Resources $ $ $ Plan 17,421 977,587 995,008 AF Net differences between expected and actual experience $ 881,160 The $977,587 reported as deferred outflows of resources related to pension resulting from City contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ending June 30, 2017. These amounts should be recognized (amortized) over the average of the expected remaining service lives of all plan members, which is 11 years. Amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows: Delaware State Fiscal Year Ending June 30: 2016 2017 2018 2019 2020 Thereafter T Police Pension $ Plan (262,065) (262,065) (262,065) 153,109 (29,961) (149,807) 101

2016 Comprehensive Annual Financial Report for the City of Dover, Delaware Financial Section – Notes to Financial Statements The components of collective pension expense for the year ending June 30 2015 are as follows: Delaware State Police Pension Expense Pension Expense June 30, 2015 Service cost $ 1,463,227 Member contributions (496,043) Administrative expenses 16,734 D Interest on the total pension liability Projected earnings on plan investments Changes in benefit terms Recognition of deferred outflow and inflows of resources: Differences between expected and actual experience Differences between projected and actual earnings on plan investments Pension Expense $ The proportionate share of the total pension liability for the June 30, 2015 measurement date 1,804,879 (1,851,096) 31,775 (29,982) (232,084) 707,409 R was determined by an actuarial valuation as of June 30, 2014, and updated procedures were used to roll forward the total pension liability to June 30, 2015. These actuarial valuations used the following actuarial assumptions: Actuarial Assumptions Investment rate of return/Discount rate1 7.2% AF Projected salary increases1 4% to 11.5% Cost-of-living adjustments N/A Inflation is included at 3% the total pension liabilities are measured based on assumptions pertaining to the interest rates, inflation rates, and employee demographic behavior in future years. The assumptions used were based on the results of an actuarial experience study conducted in 2011. 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 rates were based on the Sex distinct RP – 2000 combined Mortality Table projected to 2015 using scale AA for Males or Females, as appropriate, for mortality improvement. T 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 weighing the expected future real rates of return by an asset allocation percentage, which is 102

2016 Comprehensive Annual Financial Report for the City of Dover, Delaware Financial Section – Notes to Financial Statements based on the nature and mix of current and expected plan 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: Long-Term expected real Asset rate of return Allocation Asset class: Domestic equity 5.7% 36.5% International equity 5.7 16.5 Fixed income 2.0 22.6 D Alternative investments Cash and equivalents 7.8 - Discount rate: The discount rate for all plans used to measure the total pension liability was 7.2%. 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 19.6 4.8 R 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 of the City’s proportionate share of the net pension liability (asset) 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 7.2%, as well as what the Plans’ net AF 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): 1% Current 1% Decrease Discount Rate Increase 6.20% 7.20% 8.20% City of Dover's proportionate share of the net pension liability $ 2,278 $ (525) $ (4,737) 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 T 103

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II Animal Control Enforcement Beautification Building D Bulk Trash Collection Community Development/Housing Community Policing Economic Development Elections R Electricity Emergency Preparedness Fire Protection Inspections & Code Enforcement AF Leaf Collection Library Parks Planning & Zoning Police Protection Recreation Snow Removal Street Maintenance/Cleaning T Trash Collection Tree Maintenance & Management Water/Sewage II 105

2016 Comprehensive Annual Financial Report for the City of Dover, Delaware Financial Section – Required Supplementary Information – Part D CITY OF DOVER GENERAL FUND Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual (Non-GAAP Basis) For the Year Ended June 30, 2016 VARIANCE ORIGINAL FINAL POSITIVE BUDGET BUDGET ACTUAL (NEGATIVE) Beginning Balance - Working Capital $ 3,977,500 $ 4,820,400 $ 4,820,414 $ 14 D REVENUES: Fines & Police Revenue 911 Fee Interest Earnings Library Revenues - General Library Revenues - County Reimb. Business Licenses Permits & Other Licenses Miscellaneous Revenues 639,000 63,300 35,000 72,000 450,000 1,425,000 1,436,300 22,700 588,100 63,300 140,000 67,000 312,600 1,472,000 1,436,300 56,600 596,081 63,337 171,806 67,078 352,599 1,475,794 1,756,849 60,626 7,981 37 31,806 78 39,999 3,794 320,549 4,026 R Police Extra Duty Fees Property taxes Bid Revenue Recreations Revenue Franchise Fees Transfer Tax Sanitation Fees Garrison Farm Rent Court of Chancery Fees 533,000 12,844,500 49,700 149,000 672,300 1,340,000 2,580,000 93,700 1,065,100 461,500 12,783,800 49,700 149,000 682,300 2,090,200 2,530,000 93,900 1,090,400 559,929 12,797,900 48,872 183,174 684,540 2,188,634 2,527,478 93,858 1,239,300 98,429 14,100 (828) 34,174 2,240 98,434 (2,522) (42) 148,900 AF Interfund Service Receipts Water/Wastewater 1,492,700 1,420,200 1,426,018 5,818 Interfund Service Receipts Electric 3,738,500 3,586,700 3,640,969 54,269 Grants: Cable Franchise Grant - 50,000 50,000 - Green Energy Grant 98,500 98,500 98,500 - Miscellaneous Grants 25,000 25,000 8,933 (16,067) Police Pension Grant 500,000 500,000 415,128 (84,872) Transfer from Police Grant Funds 74,400 172,700 159,017 (13,683) Transfer from Municipal Street Aid 564,200 673,100 673,377 277 Transfer from Civil Traffic Penalties 450,000 480,000 468,793 (11,207) Transfer from Verizon and CI Reserves 13,200 13,200 15,911 2,711 Transfer from Water/Wastewater Fund 850,000 850,000 850,000 - Transfer from Electric Fund 10,000,000 10,000,000 10,000,000 - Total Revenues 41,277,100 41,936,100 42,674,501 738,401 TOTAL BEGINNING BALANCE & REVENUES $ 45,254,600 $ 46,756,500 $ 47,494,915 $ 738,415 T 106

2016 Comprehensive Annual Financial Report for the City of Dover, Delaware Financial Section – Required Supplementary Information – Part D VARIANCE ORIGINAL FINAL POSITIVE BUDGET BUDGET ACTUAL (NEGATIVE) EXPENDITURES: Tax Assessor $ 234,800 $ 240,700 $ 237,364 $ 3,336 Fire 745,400 735,400 686,947 48,453 Library 1,510,000 1,456,000 1,430,640 25,360 Recreation 729,500 723,200 713,462 9,738 Planning Commission 534,000 534,200 516,303 17,897 Public Inspections 664,700 749,000 726,661 22,339 Life Safety 482,200 481,500 491,402 (9,902) Code Enforcement 419,400 411,500 396,097 15,403 Economic Development 238,000 245,000 240,057 4,943 Police 15,761,400 16,557,500 16,635,520 (78,020) D Streets Sanitation Allocated Expenditures: Human Resources Customer Services City Manager Information Technology Finance Public Services-Administration Facilities Management 674,500 2,157,900 383,900 1,120,100 750,300 704,800 978,500 626,800 707,500 684,500 2,125,100 378,000 1,082,000 909,300 625,500 992,600 580,300 692,200 667,574 2,093,043 366,812 1,037,886 917,201 603,226 979,550 552,815 665,827 16,926 32,057 11,188 44,114 (7,901) 22,274 13,050 27,485 26,373 R Engineering Central Services Vehicle Maintenance City Clerk Mayor Council Grounds Maintenance Insurance New Street Property Acquisitions 181,400 560,200 768,500 383,400 76,100 118,100 1,210,300 690,000 - 173,400 570,300 760,000 382,800 76,100 113,600 1,133,000 690,000 240,400 166,579 558,220 791,913 370,101 74,861 100,129 1,056,855 680,148 240,362 6,821 12,080 (31,913) 12,699 1,239 13,471 76,145 9,852 38 AF Contribution to Downtown Dover Partnership 70,000 70,000 70,000 - Misc. Grant Expense 25,000 25,000 - 25,000 Other Employment Expenses 520,100 43,300 - 43,300 Bank & CC Fees 15,000 10,600 7,346 3,254 Retiree Benefits 1,895,600 1,567,700 1,567,700 - Subtotal 35,937,400 36,059,700 35,642,601 417,099 Debt Service - Principal and Interest 660,800 669,400 672,389 (2,989) Transfer to Capital Asset Reserve - 229,600 229,600 - Transfer to Capital Fund for Projects 2,625,400 2,625,400 2,625,400 - Transfer to Police Pension Fund 500,000 500,000 415,128 84,872 Transfer to Uncollectible Reserve 50,000 50,000 350,000 (300,000) Transfer to Inventory Reserve 10,000 10,000 10,000 - Transfer to Verizon Reserve 50,000 50,000 50,000 - Appropriation to Police Pension Fund 570,000 676,500 676,500 - Appropriation to General Pension Fund - 594,300 594,300 - Street Lights 797,700 797,700 804,246 (6,546) Total Expenditures Budget Balance - Working Capital Total Budget Balance & Expenditures Budget Balance - Working Capital Perspective and GAAP (Non-GAAP) Differences: Fair value of investment adjustment Deferred Revenues - Non-spendable Inventory & Prepaids - Non-spendable Unassigned Fund Balance $ 41,201,300 4,103,300 45,304,600 $ T 42,262,600 4,493,900 46,756,500 $ $ $ 42,070,164 5,424,751 47,494,915 5,424,751 17,551 (273,240) (173,540) 4,995,522 $ 192,436 (930,851) (738,415) 107

2016 Comprehensive Annual Financial Report for the City of Dover, Delaware Financial Section – Required Supplementary Information – Part D NOTES TO REQUIRED SUPPLEMENTARY INFORMATION 1. GOVERNMENTAL BUDGETS A. 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. 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. D General Fund actual revenues were higher than the final budget by $738,401 with increases in police fines, interest earnings, library revenues – County reimbursement, building permits and other licenses, police extra-duty, property taxes, recreation revenues, transfer taxes, Court of Chancery fees, and interfund transfer receipts. The major sources of decreases in revenues was attributed to Miscellaneous grants, Police pension grant receipts, transfers from Police Grant Funds and Civil Traffic Penalties. Expenditures were lower than budget by $192,436 due to lower than budgeted expense across several functions as a result of personnel reductions through attrition and retirements. The transfer to the uncollectible reserve was increased from $50,000 to R $350,000 due to the abnormal amount of write-offs due to uncollectible demolition receivables. The net result is an increase of $930,851 to the General Fund ending fund balance. B. Budget Amendments During this fiscal year, the City Council amended the budget three times. These budget amendments or supplemental appropriation ordinances were primarily for the following purposes: AF 1. To re-appropriate budget balances for ongoing capital projects. 2. To amend the grant budgets, reserve accounts for the actual results of the prior fiscal year, and all carried forward budget balances for the major operating funds from the prior fiscal year, as well as program revenues and expenses based on the analyses provided by a mid-year review. 3. To amend significant changes in program revenues, expenses and ending fund balances based on actual amounts. 2. PENSION PLANS A. Police Pension Plan T The Actuarially Determined Contribution (ADC) is being amortized using a level dollar method on a closed basis. The amortization period is 9 years for the 2016 fiscal year and will decline by 1 year until 1 year. 108

2016 Comprehensive Annual Financial Report for the City of Dover, Delaware Financial Section – Required Supplementary Information – Part D Schedule of Changes in Net Pension Liability, Related Ratios (in Thousands) POLICE PENSION Fiscal Year Ending June 30 2016 2015 2014 Total Pension Liability Interest on total pension liability $ 1,281 $ 1,311 $ 1,325 Effect of economic/demographic (gains) or losses (836) 286 25 Effect of assumption changes or inputs - 932 - Benefit payments (1,528) (1,557) (1,548) D Net change in total pension liability Total pension liability, beginning Total pension liability, ending (a) Fiduciary Net Position Employer contributions Investment income net of investment expenses $ $ (1,083) 20,471 19,388 $ 1,093 $ 279 972 19,499 20,471 $ 1,386 $ 283 (198) 19,697 19,499 1,229 1,583 R Benefit payments Administrative expenses Net change in plan fiduciary net position Fiduciary net position, beginning Fiduciary net position, ending (b) Net pension liability, ending = (a) - (b) $ $ (1,528) (5) (161) 12,385 12,224 $ 7,164 $ (1,557) (6) 106 12,279 12,385 $ 8,086 $ (1,548) (20) 1,244 11,035 12,279 7,220 AF Fiduciary net position as a % of total pension liability 63.05% 60.50% 62.97% 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. T 109

2016 Comprehensive Annual Financial Report for the City of Dover, Delaware Financial Section – Required Supplementary Information – Part D Police Pension Fund Required Supplementary Information Schedule of Employer Contributions Fiscal Year Actuarially Actual Contribution Contribution as Ended Determined Employer Deficiency Covered a Percentage of June 30 Contribution Contribution (Excess) Payroll Covered Payroll 2016 $ 1,212,000 $ 1,093,278 $ 118,722 - N/A 2015 1,176,422 1,385,789 (209,367) - N/A D 2014 2013 2012 2011 2010 2009 2008 2007 1,155,110 1,155,796 979,132 1,082,956 786,436 520,505 358,807 485,055 1,229,363 1,074,599 668,274 633,636 496,587 725,492 721,202 746,985 (74,253) 81,197 310,858 449,320 289,849 (204,987) (362,395) (261,930) - - - - - - - - N/A N/A N/A N/A N/A N/A N/A N/A RNet Pension Liability Total pension liability Fiduciary net position NET PENSION LIABILITY $ June 30, 2016 19,387,871 12,224,685 June 30, 2015 $ 20,471,000 12,384,845 AF Net pension liability 7,163,186 8,086,155 Fiduciary net position as a % of total pension liability 63.05% 60.50% 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 the valuation date, calculated based on the discount rate and actuarial assumptions below, and was then projected forward to the measurement date. Any significant changes during this period have been reflected as prescribed by GASB 67 and 68. T 110

2016 Comprehensive Annual Financial Report for the City of Dover, Delaware Financial Section – Required Supplementary Information – Part D Actuarial Methods and Significant Assumptions Valuation date July 1, 2016 Actuarial cost method Entry Age Normal Amortization method Level dollar amortization: The amortization period is 9 years for the 2016 fiscal year and will decline by 1 each year until 1 year. Amortization period Closed Asset valuation method The Market Value of Assets Actuarial assumptions: Investment rate of return 6.5% (See supplementary schedule in RSI) Discount rate 6.5% D Projected salary increases Includes inflation at Automatic cost of living (retirees) Mortality none, no remaining active participants 2.5% 2.0% RP-2000 Healthy Annuitant Mortality projected on a generational basis using Scale AA. As a generational table, it reflects mortality improvements both before and after the measurement date. R B. General Employee Pension Plan The Actuarially Determined Contribution (ADC) is based on an amortization of the unfunded actuarial liability over 15 years beginning July 1, 2014 on a closed basis. AF T 111

2016 Comprehensive Annual Financial Report for the City of Dover, Delaware Financial Section – Required Supplementary Information – Part D Schedule of Changes in Net Pension Liability, Related Ratios (in Thousands) General Pension Fiscal Year Ending June 30 2016 2015 2014 Total Pension Liability Service cost $ 401 $ 459 $ 484 Interest on total pension liability 3,719 3,861 3,810 Effect of economic/demographic (gains) or losses (267) (422) 111 Effect of assumption changes or inputs - 1,956 - D Benefit payments Net change in total pension liability Total pension liability, beginning Total pension liability, ending (a) Fiduciary Net Position (3,718) 135 58,673 (3,700) 2,154 56,519 $ 58,808 $ 58,673 $ 56,519 (3,654) 751 55,768 R Employer contributions Member contributions Investment income net of investment expenses Benefit payments Administrative expenses Net change in plan fiduciary net position $ 3,089 $ 202 850 (3,718) (16) 407 3,420 $ 209 955 (3,700) (19) 865 3,473 212 4,153 (3,654) (20) 4,164 AF Fiduciary net position, beginning 35,291 34,426 30,263 Fiduciary net position, ending (b) $ 35,698 $ 35,291 $ 34,427 Net pension liability, ending = (a) - (b) $ 23,110 $ 23,382 $ 22,092 Fiduciary net position as a % of total pension liability 60.70% 60.15% 60.91% Covered payroll $ 5,504 $ 5,864 $ 5,971 Net pension liability as a % of covered payroll 419.83% 398.73% 370.03% This schedule is presented to illustrate the requirement to show information for 10 years. However, T 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. 112

2016 Comprehensive Annual Financial Report for the City of Dover, Delaware Financial Section – Required Supplementary Information – Part D General Employee Pension Plan Required Supplementary Information Schedule of Employer Contributions Fiscal Year Actuarially Actual Contribution Contribution as Ended Determined Employer Deficiency Covered a Percentage of June 30 Contribution Contribution (Excess) Payroll Covered Payroll 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% D 2012 2011 2010 2009 2008 2007 3,130,022 3,149,493 2,564,767 2,356,529 2,269,802 2,231,594 3,142,951 3,347,728 2,270,623 2,491,393 2,908,080 2,767,177 (12,929) (198,235) 294,144 (134,864) (638,278) (535,583) 7,974,057 8,256,751 8,786,981 8,716,361 8,006,103 7,612,121 39.41% 40.55% 25.84% 28.58% 36.32% 36.35% R Actuarial Methods and Significant Assumptions Interim valuation date Actuarial cost method Amortization method Remaining amortization period Amortization period June 30, 2016 Entry Age Normal Level dollar 14 years Closed; smooths gains and losses over a 5- year period AF Asset valuation method The Market Value of Assets Actuarial Assumptions: Investment rate of return 6.5% Discount rate 6.5% Projected salary increases 3.0% Includes inflation at 2.5% Mortality RP-2000 Healthy Annuitant Mortality with Generational improvements using Scale AA C. State Police Pension Plan The County & Municipal Police and Firefighter’s Pension Plan is a cost sharing multiple-employer defined-benefit pension plan established in the Delaware Code. T 113

2016 Comprehensive Annual Financial Report for the City of Dover, Delaware Financial Section – Required Supplementary Information – Part D Schedule of the City of Dover's Proportionate Share of the Net Pension Liability County & Municipal Police and Firefighter's Pension Plan Fiscal Year Ending 2015 2014 City's proportion of the net pension liability(asset) 9.6070% 9.6334% City's proportionate share of the net pension liability(asset) $ (524,958) $ (1,042,117) City's covered-employee payroll $ 7,060,453 $ 6,582,053 City's proportionate share of the net pension liability(asset) as a (7.44%) (15.83%) percentage of its covered-employee payroll D Plan fiduciary net position as a percentage of the total pension liability 98.07% 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. Schedule of City of Dover's Contributions County & Municipal Police and Firefighter's Pension Plan R Contractually required contribution (ERS) Contributions in relation to the contractually required contribution Contribution deficiency (excess) $ $ Fiscal Year Ending 2015 2014 933,750 $ 990,588 (933,750) - $ (990,588) - AF Board's covered-employee payroll $ 7,060,453 $ 6,582,053 Contributions as a percentage of covered-employee payroll 13.23% 15.05% This schedule is presented to illustrate the requirement to show information for 10 years. However, information prior to June 30, 2015 is not available. 3. OTHER POST-EMPLOYMENT PLAN The following information presents additional information related to funding status and progress of Other Postemployment Benefits. It is intended to help readers assess the individual plans’ funding status on a going-concern basis and assess progress made in accumulating sufficient assets to pay benefits when due. The amount shown below as actuarial accrued liability is a measure of the difference between the T actuarial present value of future plan benefits, and the actuarial present value of future normal cost. 114

2016 Comprehensive Annual Financial Report for the City of Dover, Delaware Financial Section – Required Supplementary Information – Part D OPEB Trust Schedule of Funding Status and Progress (3) (6) Unfunded UAAL (2) Actuarial as a (1) Actuarial Accrued (4) % of Actuarial Actuarial Accrued Liabilities Funded (5) Covered Valuation Value of Liability (UAAL) Ratio Covered Payroll Date Assets (AAL) (2) – (1) (1)/(2) Payroll (3)/(5) 7/1/2015 $ 22,448,290 $ 66,600,509 $ 44,152,219 33.7% $ 17,656,880 250% 7/1/2014 18,752,196 51,224,521 32,472,325 36.6% 17,059,787 190% D 7/1/2013 7/1/2012 7/1/2011 7/1/2010 7/1/2009 13,627,223 10,913,172 7,047,987 4,882,375 4,761,141 70,414,000 71,021,484 83,441,000 83,518,121 64,812,543 56,786,777 60,108,312 76,393,013 78,635,746 60,051,402 19.4% 15.4% 8.4% 5.8% 7.3% 17,521,727 17,335,618 18,454,162 18,292,104 18,797,853 324% 347% 414% 430% 319% R Actuarial Methods and Significant Assumptions Valuation date Actuarial cost method Amortization method Remaining amortization period Asset valuation method Actuarial Assumptions: July 1, 2014 Projected Unit Credit Level dollar Amount Open 30 years (open) The Market Value of Assets AF Investment rate of return 6.5% Discount rate 6.5% Ultimate Rate of Medical inflation Varies between 5.00% and 5.70% Initial Rate of Medical Inflation 7.00%<65 and 6.60%>=65 Health Care Cost Trend Getzen Model version 12.2 with real GDP growth assumption 1.8% Mortality RP-2000 Health Annuitant Mortality Table Projected on a generational basis using Scale AA T 115

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2016 Comprehensive Annual Financial Report for the City of Dover, Delaware Financial Section – Supplementary Information – Part E D R AF 2016 Arbor Day Poster Contest Winners gather for a photo with Governor Markell, state legislators, representatives from the City of Dover, and Department of Agriculture officials. Credit Photo: delawaretrees.com/2016arbordayceremony T 117

2016 Comprehensive Annual Financial Report for the City of Dover, Delaware Financial Section – Supplementary Information – Part E FINANCIAL STATEMENTS D GENERAL FUND COMBINING SCHEDULES The Governmental Capital Projects Fund is combined with the General Fund in the Basic Financial Statements. The combining schedules are presented in the supplementary information. The budgetary comparison for the Governmental Capital Projects Fund has its own separate R 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. AF T 118

2016 Comprehensive Annual Financial Report for the City of Dover, Delaware Financial Section – Supplementary Information – Part E The City of Dover Combining General Fund Balance Sheet June 30, 2016 General Total General Capital Projects General Fund Fund Funds Assets: Cash and Cash Equivalents $ 1,283,983 $ 271,477 $ 1,555,460 Restricted Cash and Cash Equivalents - 763,697 763,697 Investments 4,905,446 2,741,938 7,647,384 Restricted Investments 18,438 - 18,438 Receivables, net D Accounts Taxes Due from Other Funds Prepaid Items Inventory, at Cost Total Assets $ 813,294 77,421 614,906 59,384 114,156 7,887,028 $ - - - - - 3,777,112 813,294 77,421 614,906 59,384 114,156 $ 11,664,140 R Liabilities: Accounts Payable Deferred Revenue Due to Other Funds Other Total Liabilities Deferred Inflows of Resources: $ 1,282,503 23,144 1,911 208,972 1,516,530 $ 655,401 57,825 1,920 - 715,146 $ 1,937,904 80,969 3,831 208,972 2,231,676 AF Unavailable revenue 273,240 - 273,240 Total Deferred Inflows of Resources 273,240 - 273,240 Fund Balances: Non-Spendable Inventory and Prepaids 173,540 - 173,540 Library Endowment 5,000 - 5,000 Patronage Stock 16,594 - 16,594 Restricted Library Endowment 1,844 - 1,844 Verizon Cable Franchise 171,925 - 171,925 Committed Contingency 732,833 - 732,833 Parkland Reserve Assigned Capital Assets Unassigned Total Fund Balances Total Liabilities and Fund Balances $ - 4,995,522 6,097,258 7,887,028 - T $ 326,364 2,735,602 - 3,061,966 3,777,112 326,364 2,735,602 4,995,522 9,159,224 $ 11,664,140 119

2016 Comprehensive Annual Financial Report for the City of Dover, Delaware Financial Section – Supplementary Information – Part E The City of Dover Combining Statement of Revenues, Expenditures and Changes in Fund Balances of the General Fund For the Year Ended June 30, 2016 General Total General Capital Projects General Fund Fund Funds Revenues Fines $ 659,418 $ - $ 659,418 Library Revenue- General 67,078 - 67,078 Library Revenue County Reimbursement 352,599 - 352,599 Licenses and Permits 3,232,643 - 3,232,643 Sanitation Fees and Rebates 2,527,478 - 2,527,478 Miscellaneous Services 1,582,127 258,064 1,840,191 D Property Taxes Grants Received Court of Chancery Fees Investment Income Total Revenues Expenditures Current: General Government 12,846,772 572,561 1,239,300 164,460 23,244,436 1,873,837 - 63,890 - 5,427 327,381 - 12,846,772 636,451 1,239,300 169,887 23,571,817 1,873,837 R Library Services Public Safety and Law Enforcement Public Works Recreational Services Streets and Sanitation Services Engineering services Financial Administration Garage and Stores Insurance 1,430,640 20,268,618 1,534,037 713,462 2,760,616 166,579 919,086 381,609 280,901 - 770,506 68,352 70,514 3,321,197 - - 84,234 - 1,430,640 21,039,124 1,602,389 783,976 6,081,813 166,579 919,086 465,843 280,901 AF Retiree Health Care 1,567,700 - 1,567,700 Employee Pension 594,300 - 594,300 Community and Economic Development 122,813 - 122,813 Street Lights 804,246 - 804,246 Debt Service: Principal Retirement 553,824 - 553,824 Interest and Fiscal Charges 118,565 - 118,565 Total Expenditures 34,090,833 4,314,803 38,405,636 Excess (deficiency) of Revenues over Expenditures (10,846,397) (3,987,422) (14,833,819) Other Financing Sources and Uses Reserve Transfers (263,687) (92,700) (356,387) Interfund Transfers 11,714,421 2,625,400 14,339,821 Total other Financing Sources and Uses 11,450,734 2,532,700 13,983,434 Net Change in Fund Balances 604,337 (1,454,722) (850,385) Fund Balances at Beginning of Year $ 4,820,414 $ 2,926,738 $ 7,747,152 Fund Balances at End of Year Perspective and GAAP (Non-GAAP) Differences: Fair Value of Investment Adjustment Deferred Revenues - Non-spendable Inventory & Prepaids - Non-spendable Capital Asset - Assigned Unassigned Fund Balance $ $ $ T 5,424,751 $ 17,551 $ (273,240) (173,540) - 4,995,522 $ 1,472,016 $ 9,806 $ - - (1,481,822) - $ 6,896,767 27,357 (273,240) (173,540) (1,481,822) 4,995,522 120

2016 Comprehensive Annual Financial Report for the City of Dover, Delaware Financial Section – Supplementary Information – Part E CITY OF DOVER GOVERNMENTAL CAPITAL PROJECTS FUND Schedule of Revenues, Expenditures and Changes in Fund Balances Budget & Actual (Non-GAAP Basis) For the Year Ended June 30, 2016 VARIANCE ORIGINAL FINAL POSITIVE BUDGET BUDGET ACTUAL (NEGATIVE) Beginning Balance - Working Capital $ 154,800 $ 2,926,700 $ 2,926,738 $ 38 REVENUES: State Grant - Other - 80,500 63,890 (16,610) D Transfer from General Fund for Projects Income from Sale of Assets Interest Earnings Miscellaneous Receipts Total Revenues TOTAL BEGINNING BALANCE & REVENUES $ 2,625,400 20,300 5,000 - 2,650,700 2,805,500 $ 2,625,400 120,800 5,000 74,700 2,906,400 5,833,100 $ 2,625,400 180,401 5,427 77,663 2,952,781 5,879,519 $ - 59,601 427 2,963 46,381 46,419 R EXPENDITURES: Fire Grounds Maintenance Life Safety Police Recreation Streets Sanitation City Manager $ 145,600 201,100 55,700 262,100 - 1,428,500 449,000 24,700 $ 445,800 185,200 55,700 302,700 73,900 3,735,000 449,000 24,700 $ 445,594 68,352 56,411 268,501 70,514 2,918,713 402,484 - $ 206 116,848 (711) 34,199 3,386 816,287 46,516 24,700 AF Fleet Maintenance 84,000 84,500 84,234 266 Subtotal 2,650,700 5,356,500 4,314,803 1,041,697 Transfer to Capital Asset Reserve - 92,700 92,700 - Total Expenditures 2,650,700 5,449,200 4,407,503 1,041,697 Budget Balance - Working Capital 154,800 383,900 1,472,016 (1,088,116) Budget Balance & Expenditures $ 2,805,500 $ 5,833,100 $ 5,879,519 $ (46,419) Budget Balance - Working Capital $ 1,472,016 Perspective and GAAP (Non-GAAP) Differences: Fair value of investment adjustment 9,806 Assigned to Capital assets 1,253,780 Committed to Parks & Recreation improvements 326,364 Total Fund Balances $ 3,061,966 T 121

2016 Comprehensive Annual Financial Report for the City of Dover, Delaware Financial Section – Supplementary Information – Part E D FINANCIAL STATEMENTS SPECIAL REVENUE FUNDS Special Revenue Funds include the group of funds classified as grant funds 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. R POLICE GRANTS The City of Dover Police Department receives various grants from the State of Delaware for public and highway safety and the U.S. Department of Justice for local law enforcement. All 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, and the Federal Government. Activities associated with these grants are recorded in AF 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 & NEIGHBORHOOD STABILIZATION PROGRAM The City receives a U.S. Department of Housing and Urban Development Entitlement Grant for the Community Development Block Grant Program. This provides housing to low or moderate- income persons as well as public housing rehabilitation and community policing. Combined T with the CDBG Fund is the Neighborhood Stabilization Program (NSP) that provides low interest loans for low to moderate-income families. 122

2016 Comprehensive Annual Financial Report for the City of Dover, Delaware Financial Section – Supplementary Information – Part E FINANCIAL STATEMENTS SPECIAL REVENUE FUNDS D (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 districts. The City receives these funds R 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) AF The State of Delaware Department of Transportation provides a grant to municipalities that implement the Electronic Red Light 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. 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. T 123

2016 Comprehensive Annual Financial Report for the City of Dover, Delaware Financial Section – Supplementary Information – Part E CITY OF DOVER SPECIAL REVENUE FUNDS COMBINING BALANCE SHEET JUNE 30, 2016 Cash D ASSETS: Receivables Prepaid items POLICE GRANTS $ 527,518 200 - LIBRARY GRANTS $ 65,051 - 350 MUNICIPAL CDBG/NSP STREET $ AID HOUSING GRANTS 131 - - $ 11,719 - - STATE D.O.T. GRANTS $ 90,699 - - SUBSTANCE $ ABUSE PREV. GRANT 112,248 - - ERLSP $ 100 - - REALTY TRANSFER $ TAX 28 1,177 - $ TOTALS 807,494 1,377 350 Due from General Fund Due from other governments TOTAL ASSETS LIABILITIES AND FUND BALANCE: Liabilities: Vouchers Payable R 600 14,326 542,644 10,235 - - 65,401 26,876 - - 131 - - 9,546 21,265 3,750 - - 90,699 - - - 112,248 12,795 - 56,446 56,546 - 1,205 - - - 600 80,318 890,139 53,656 AF Deferred Revenue 1,128 1,000 - - - - - - 2,128 Due to other funds-charges 18,364 - 31 177 - - 56,446 28 75,046 Total Liabilities 29,727 27,876 31 3,927 - 12,795 56,446 28 130,830 Fund Balances: Nonspendable - 350 - - - - - - 350 Restricted 512,917 37,175 100 17,338 90,699 99,453 100 1,177 758,959 Total Fund Balances 512,917 37,525 100 17,338 90,699 99,453 100 1,177 759,309 TOTAL LIABILITIES AND FUND BALANCES $ 542,644 $ 65,401 $ 131 $ 21,265 $ 90,699 $ 112,248 $ 56,546 $ 1,205 $ 890,139 124 T

2016 Comprehensive Annual Financial Report for the City of Dover, Delaware Financial Section – Supplementary Information – Part E CITY OF DOVER SPECIAL REVENUE FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN UNRESERVED FUND BALANCES YEAR ENDED JUNE 30, 2016 REVENUES: D Grants received Recreation revenue Police fines $ POLICE GRANTS 956,712 - - LIBRARY GRANTS $ 296,335 - - MUNICIPAL CDBG/NSP HOT SHOT STREET AID $ 673,128 - - HOUSING AND GAMES GRANTS GRANT $ 256,662 - - $ 10,549 - - STATE D.O.T. GRANTS $ 577,284 - - SUBSTANCE ABUSE PREV. $ GRANT 28,030 65,145 - $ ERLSP - - 468,793 REALTY TRANSFER $ TAX - - - TOTALS $ 2,798,700 65,145 468,793 Transfer taxes Investment income (loss) TOTAL REVENUES EXPENDITURES: Program expenditures TOTAL EXPENDITURES R - 2,022 958,734 441,744 441,744 - - 296,335 289,381 289,381 - 214 673,342 - - - - 256,662 326,614 326,614 - - 10,549 10,549 10,549 - 145 577,429 544,528 544,528 - - 93,175 91,903 91,903 - - 468,793 - - 2,191,915 437 2,192,352 2,550 2,550 2,191,915 2,818 5,527,371 1,707,269 1,707,269 AF Excess (deficiency) of revenues over (under) expenditures 516,990 6,954 673,342 (69,952) - 32,901 1,272 468,793 2,189,802 3,820,102 OTHER FINANCING SOURCES (USES): Transfers-out (159,017) - (673,377) - - - - (468,793) (2,188,634) (3,489,821) Net Change in fund balances 357,973 6,954 (35) (69,952) - 32,901 1,272 - 1,168 330,281 FUND BALANCE AT BEGINNING OF YEAR 154,944 30,571 135 87,290 - 57,798 98,181 100 9 429,028 FUND BALANCE AT END OF YEAR $ 512,917 $ 37,525 $ 100 $ 17,338 $ - $ 90,699 $ 99,453 $ 100 $ 1,177 $ 759,309 125 T

2016 Comprehensive Annual Financial Report for the City of Dover, Delaware Financial Section – Supplementary Information – Part E CITY OF DOVER POLICE GRANTS SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN UNRESERVED FUND BALANCE - BUDGET (NON-GAAP BASIS) AND ACTUAL YEAR ENDED JUNE 30, 2016 VARIANCE ORIGINAL FINAL POSITIVE BUDGET BUDGET ACTUAL (NEGATIVE) REVENUES: Beginning balance $ 125,000 $ 154,900 $ 154,944 $ 44 D Interest earned Grants received TOTAL REVENUES & BEGINNING BALANCE EXPENDITURES: Personnel - 527,300 652,300 80,300 - 1,111,900 1,266,800 80,300 2,022 956,712 1,113,678 76,423 2,022 (155,188) (153,122) (3,877) R Program expenses/supplies Computer hardware Telephone/fax Training/Conference/Food/Travel Consulting/audit fees Contractual services TOTAL EXPENDITURES 410,600 20,000 15,000 17,000 1,000 - 543,900 377,600 20,000 15,000 79,600 1,000 299,400 872,900 177,889 2,825 19,690 74,203 - 90,714 441,744 (199,711) (17,175) 4,690 (5,397) (1,000) (208,686) (431,156) AF Other financing uses: Operating transfers - out (74,400) (172,700) (159,017) 13,683 BALANCE CARRIED TO NEXT YEAR $ 34,000 $ 221,200 $ 512,917 $ 291,717 T 126

2016 Comprehensive Annual Financial Report for the City of Dover, Delaware Financial Section – Supplementary Information – Part E CITY OF DOVER LIBRARY GRANTS SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN UNRESERVED FUND BALANCE - BUDGET (NON-GAAP BASIS) AND ACTUAL YEAR ENDED JUNE 30, 2016 VARIANCE ORIGINAL FINAL POSITIVE BUDGET BUDGET ACTUAL (NEGATIVE) REVENUES: Beginning balance $ 17,300 $ 30,600 $ 30,571 $ (29) D Grants received: State Grants received: Federal TOTAL REVENUES & BEGINNING BALANCE EXPENDITURES: Program expenditures/supplies (Fed Grant) Program expenditures/supplies (State Grant) 278,900 2,500 298,700 2,500 24,100 305,500 2,500 338,600 2,500 27,500 293,835 2,500 326,906 2,500 25,436 (11,665) - (11,694) - (2,064) Office Supplies Printing/duplicating Postage Books R Furniture/Fixtures Audio visual supplies Training/conference/food/travel Office equipment repairs 24,000 13,200 100 129,200 3,100 75,100 2,000 6,000 30,800 12,500 100 146,600 7,000 77,200 8,800 6,300 24,413 12,306 43 129,687 9,827 74,703 3,303 5,314 (6,387) (194) (57) (16,913) 2,827 (2,497) (5,497) (986) AF Office equipment lease 1,200 2,000 1,849 (151) Contractual services 900 - - - TOTAL EXPENDITURES 281,400 321,300 289,381 (31,919) BALANCE CARRIED TO NEXT YEAR $ 17,300 $ 17,300 $ 37,525 $ 20,225 T 127

2016 Comprehensive Annual Financial Report for the City of Dover, Delaware Financial Section – Supplementary Information – Part E CITY OF DOVER MUNICIPAL STREET AID FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN UNRESERVED FUND BALANCE-BUDGET (NON-GAAP BASIS) AND ACTUAL YEAR ENDED JUNE 30, 2016 VARIANCE ORIGINAL FINAL POSITIVE BUDGET BUDGET ACTUAL (NEGATIVE) REVENUES: Beginning balance $ 100 $ 100 $ 135 $ 35 D State Grant - Operations Interest Earned TOTAL REVENUES & BEGINNING BALANCE Other financing uses: Operating transfers-out 564,200 - 564,300 (564,200) 673,100 - 673,200 (673,100) 673,128 214 673,477 (673,377) 28 214 277 (277) R BALANCE CARRIED TO NEXT YEAR $ 100 $ 100 $ 100 $ - AF T 128

2016 Comprehensive Annual Financial Report for the City of Dover, Delaware Financial Section – Supplementary Information – Part E CITY OF DOVER HOUSING PROGRAMS - CDBG & NSP SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN UNRESERVED FUND BALANCE-BUDGET (NON-GAAP BASIS) AND ACTUAL YEAR ENDED JUNE 30, 2016 VARIANCE ORIGINAL FINAL POSITIVE BUDGET BUDGET ACTUAL (NEGATIVE) REVENUES: Beginning balance CDBG $ 2,100 $ 2,100 $ 2,013 $ (87) D Beginning balance NSP Federal grant received Revenue from NSP TOTAL REVENUES & BEGINNING BALANCE EXPENDITURES: Prior year Closing cost/down payment program - 265,400 - 267,500 - - 272,800 - 274,900 900 85,277 231,161 25,501 343,952 892 85,277 (41,639) 25,501 69,052 8 R Prior year Ncall Research Inc. Current year closing cost/down payment program Current year Connection Community Supply Current year Dover interfaith ministry Current year MHDC home repair Current year Habitat for Humanity Current year Milford housing H/O rehab Current year Peoples Place - 60,000 7,400 27,000 35,300 40,000 52,900 6,800 6,500 60,000 7,400 27,000 35,300 40,000 52,900 6,800 5,500 59,108 4,952 27,000 12,990 37,047 39,506 6,722 1,000 892 2,448 - 22,310 2,953 13,394 78 AF Current year salaries 36,000 36,000 37,444 (1,444) NSP Salaries - - 2,493 (2,493) NSP expense - - 92,960 (92,960) TOTAL EXPENDITURES 265,400 272,800 326,614 (53,814) CDBG BALANCE CARRIED TO NEXT YEAR $ 2,100 $ 2,100 $ 2,013 $ 87 NSP BALANCE CARRIED TO NEXT YEAR $ - $ - $ 15,325 $ (15,325) T 129

2016 Comprehensive Annual Financial Report for the City of Dover, Delaware Financial Section – Supplementary Information – Part E CITY OF DOVER STATE OF DELAWARE DEPARTMENT OF TRANSPORTATION GRANTS SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN UNRESERVED FUND BALANCE - BUDGET (NON-GAAP BASIS) AND ACTUAL YEAR ENDED JUNE 30, 2016 VARIANCE ORIGINAL FINAL POSITIVE BUDGET BUDGET ACTUAL (NEGATIVE) REVENUES: Beginning balance $ 144,000 $ 57,800 $ 57,798 $ (2) D Grants received: State Interest earned TOTAL REVENUES & BEGINNING BALANCE EXPENDITURES: Program expenditures Grant Related 500,000 500 644,500 644,000 839,300 500 897,600 890,100 577,284 145 635,227 544,528 (262,016) (355) (262,373) (345,572) R TOTAL EXPENDITURES BALANCE CARRIED TO NEXT YEAR CITY OF DOVER $ SUBSTANCE ABUSE PREVENTION PROGRAM 644,000 500 $ 890,100 7,500 $ 544,528 90,699 $ 345,572 83,199 AF SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN UNRESERVED FUND BALANCE - BUDGET (NON-GAAP BASIS) AND ACTUAL YEAR ENDED JUNE 30, 2016 VARIANCE ORIGINAL FINAL POSITIVE BUDGET BUDGET ACTUAL (NEGATIVE) REVENUES: Beginning balance $ 41,000 $ 98,200 $ 98,181 $ (19) Grants revenue 55,700 28,000 28,030 30 Recreation revenue 33,000 50,000 65,145 15,145 TOTAL REVENUES & BEGINNING BALANCE EXPENDITURES: Temporary help/benefits Program expenditures/supplies TOTAL EXPENDITURES BALANCE CARRIED TO NEXT YEAR $ 129,700 60,200 55,700 115,900 13,800 T $ 176,200 60,200 55,700 115,900 60,300 $ 191,356 57,228 34,675 91,903 99,453 $ 15,156 (2,972) (21,025) (23,997) 39,153 130

2016 Comprehensive Annual Financial Report for the City of Dover, Delaware Financial Section – Supplementary Information – Part E D FINANCIAL SCHEDULES PROPRIETARY FUND TYPES ENTERPRISE FUNDS The following schedules pertaining to the major enterprise funds are not required under GAAP, but are included for public review of budgetary compliance. Accordingly, no reconciliation to the GAAP financial statements is provided. R WATER/WASTEWATER FUND The Water/Wastewater Fund accounts for all operating activity of the Water/Wastewater Utility. This includes service revenues, investment earnings on operating accounts, direct and indirect operating expenses, sewerage treatment fees, debt service, and transfers to other funds and the Improvement and Extension Fund. The Water/Wastewater Improvement and Extension Fund is used to account for all capital project and AF 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. 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 T 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. 131

2016 Comprehensive Annual Financial Report for the City of Dover, Delaware Financial Section – Supplementary Information – Part E CITY OF DOVER WATER/WASTEWATER FUND SCHEDULE OF REVENUES AND EXPENSES BUDGET (NON-GAAP BASIS) AND ACTUAL YEAR ENDED JUNE 30, 2016 VARIANCE ORIGINAL FINAL POSITIVE BUDGET BUDGET ACTUAL (NEGATIVE) Beginning Balance - Water $ 861,600 $ 1,072,900 $ 1,072,915 $ 15 Beginning Balance - Wastewater 293,400 206,900 206,894 (6) TOTAL BEGINNING BALANCES 1,155,000 1,279,800 1,279,809 9 D REVENUES: Water fees Wastewater fees Wastewater Treatment Fees Groundwater adjustment Miscellaneous services Water tank space rent 6,200,000 3,728,000 3,026,500 1,864,300 64,000 341,900 5,366,600 3,823,800 2,997,600 1,965,600 56,200 341,900 5,457,061 3,745,497 2,936,831 1,878,057 69,555 337,989 90,461 (78,303) (60,769) (87,543) 13,355 (3,911) Sewer Impact Fees Total Revenues TOTAL BEGINNING BALANCES & REVENUES EXPENSES: R Interest earnings Water Impact Fees Engineering & Inspection $ $ 3,000 250,000 250,000 15,727,700 16,882,700 517,500 $ $ 10,000 222,400 253,400 15,037,500 16,317,300 512,500 $ $ 4,341 207,516 238,030 14,874,877 16,154,686 499,239 $ (5,659) (14,884) (15,370) (162,623) (162,614) 13,261 AF Water 673,300 650,900 618,876 32,024 Water Treatment Plant 1,910,000 1,743,100 1,647,253 95,847 Wastewater 968,600 840,600 774,075 66,525 Kent County Treatment Fee 4,130,000 4,130,000 3,894,341 235,659 Interfund Service Fees 1,492,700 1,420,200 1,426,018 (5,818) Retirees Health Care 178,600 60,200 60,200 - Debt Service - Water 545,200 521,100 516,941 4,159 Debt Service - Wastewater 586,900 611,300 608,966 2,334 Other Employment Expenses 20,000 142,300 - 142,300 Bank & CC Fees 46,200 25,000 23,559 1,441 Other Appropriations: Approp to Pension Fund - 248,400 248,400 - Transfer to Water I/E 1,800,000 1,800,000 1,800,000 - Transfer to Wastewater I/E 1,500,000 1,500,000 1,500,000 - Transfer to Impact Fee Reserve - Wastewater - - 54,389 (54,389) Transfer to General Fund from Water Transfer to General Fund from Wastewater Transfer to Contingency Reserve Water Total Expenses Budget Balance - Water Budget Balance - Wastewater Total Budget Balances - Working Capital TOTAL BUDGET BALANCES & EXPENSES $ 550,000 300,000 32,000 15,251,000 1,048,600 583,100 1,631,700 16,882,700 $ T 550,000 300,000 32,000 15,087,600 566,500 663,200 1,229,700 16,317,300 $ 550,000 300,000 32,000 14,554,257 881,297 719,132 1,600,429 16,154,686 $ - - - 533,343 (314,797) (55,932) (370,729) 162,614 132

2016 Comprehensive Annual Financial Report for the City of Dover, Delaware Financial Section – Supplementary Information – Part E CITY OF DOVER WATER/WASTEWATER IMPROVEMENT & EXTENSION FUND SCHEDULE OF REVENUES AND EXPENSES BUDGET (NON-GAAP BASIS) AND ACTUAL YEAR ENDED JUNE 30, 2016 VARIANCE ORIGINAL FINAL POSITIVE BUDGET BUDGET ACTUAL (NEGATIVE) Beginning Balance -Water $ 833,500 $ 4,990,300 $ 4,990,310 $ 10 Beginning Balance -Wastewater 1,027,600 4,551,700 4,551,722 22 1,861,100 9,542,000 9,542,032 32 D TOTAL BEGINNING BALANCES REVENUES: Miscellaneous Receipts Grants Revenue Interest earnings Income from sale of assets Transfer from Water Fund Transfer from Wastewater Fund - - 25,000 - 1,800,000 1,500,000 61,400 20,300 69,900 - 1,800,000 1,500,000 70,247 18,952 119,442 16,479 1,800,000 1,500,000 8,847 (1,348) 49,542 16,479 - - Transfer from Water Impact Fee Reserve Total Revenues EXPENSES: Water R TOTAL BEGINNING BALANCES & REVENUES $ 165,000 3,490,000 5,351,100 2,028,600 $ 165,000 3,616,600 13,158,600 5,396,100 $ 20,800 3,545,920 13,087,952 1,810,487 $ (144,200) (70,680) (70,648) 3,585,613 AF Wastewater 1,822,100 5,299,100 3,045,887 2,253,213 Water Treatment Plant - 330,900 246,052 84,848 Transfer to Impact Fee Reserve - Wastewater - - 1,271,343 (1,271,343) Total Expenses 3,850,700 11,026,100 6,373,769 4,652,331 Budget Balance - Water 617,400 1,179,900 3,584,464 (2,404,564) Budget Balance - Wastewater 883,000 952,600 3,129,719 (2,177,119) Total Budget Balances - Working Capital 1,500,400 2,132,500 6,714,183 (4,581,683) TOTAL BUDGET BALANCES & EXPENSES $ 5,351,100 $ 13,158,600 $ 13,087,952 $ 70,648 0 0 0 0 T 133

2016 Comprehensive Annual Financial Report for the City of Dover, Delaware Financial Section – Supplementary Information – Part E CITY OF DOVER ELECTRIC REVENUE FUND SCHEDULE OF REVENUE AND EXPENSES BUDGET (NON-GAAP BASIS) AND ACTUAL YEAR ENDED JUNE 30, 2016 VARIANCE ORIGINAL FINAL POSITIVE BUDGET BUDGET ACTUAL (NEGATIVE) Beginning Balance - Working Capital $ 6,177,600 $ 8,337,500 $ 8,337,466 $ (34) REVENUES: Direct base sales 78,279,200 78,493,800 77,844,937 (648,863) Rental income 202,600 202,600 238,862 36,262 Miscellaneous services 597,200 911,400 842,163 (69,237) Utility tax 1,281,100 1,309,600 1,309,701 101 D Green Energy Interest earned-operating Transfer from Rate Stabilization Total Revenues TOTAL BEGINNING BALANCE & REVENUES EXPENSES: Power Supply & Generation Power Supply $ $ 128,000 47,900 3,000,000 83,536,000 89,713,600 23,402,600 $ $ 128,000 35,000 750,000 81,830,400 90,167,900 23,402,600 $ $ 126,593 64,340 750,000 81,176,596 89,514,062 23,610,686 $ $ (1,407) 29,340 - (653,804) (653,838) (208,086) R Power Supply Management RGGI Dover Sun Park Energy Solar Renewal Energy Credits Renewable Energy Credits Capacity Charges PJM Charges - Transmission & Fees PJM Charges - Load Total Power Supply Plant Operations 996,000 175,000 2,313,900 363,400 673,400 10,225,100 7,932,500 7,966,100 54,048,000 6,434,600 996,000 175,000 2,313,900 363,400 673,400 10,225,100 7,932,500 7,966,100 54,048,000 6,382,900 996,000 66,080 2,280,044 344,577 586,169 10,574,198 5,247,660 2,960,596 46,666,010 5,734,855 - 108,920 33,856 18,823 87,231 (349,098) 2,684,840 5,005,504 7,381,990 648,045 AF Capacity Credits (10,472,100) (10,472,100) (9,827,426) (644,674) PJM Credits (360,000) (360,000) (617,904) 257,904 PJM Spot Market Energy (1,708,300) (1,708,300) (1,002,972) (705,328) Generation Fuels 1,167,300 1,167,300 1,339,688 (172,388) Total Generation (4,938,500) (4,990,200) (4,373,759) (616,441) Utility Tax 1,281,100 1,309,600 1,309,701 (101) Administration 839,300 834,300 711,397 122,903 Transmission/Distribution 4,068,600 3,437,300 3,279,685 157,615 Electrical Engineering 1,335,800 1,120,900 1,065,980 54,920 Systems Operations 679,800 601,500 593,428 8,072 Meter Reading 360,500 363,200 358,571 4,629 Provision for Uncollectible 200,000 200,000 200,000 - Retirees Health Care 537,800 57,700 57,700 - OPEB Trust Contribution 1,030,000 - 326,411 (326,411) Green Energy Payment to DEMEC 128,000 128,000 126,593 1,407 Bank & CC Fees 242,300 259,300 258,500 800 Interest on Deposits Intrafund Service Fees Other Appropriations: Electric Capital Project Fund General Fund Debt Service Rate Stabilization Fund Insurance Reserve Contingency Reserve Other Employment Expenses TOTAL EXPENSES Budget Balance - Working Capital TOTAL BUDGET BALANCE & EXPENSES $ 20,500 3,738,500 3,500,000 10,000,000 3,402,000 - 10,000 13,000 72,000 80,568,700 9,144,900 89,713,600 $ T 20,500 3,586,200 3,500,000 10,000,000 1,617,700 394,800 10,000 13,000 353,400 76,865,200 13,302,700 90,167,900 $ 18,283 3,640,969 3,665,375 10,000,000 1,621,463 394,800 10,000 13,000 - 69,944,107 19,569,955 89,514,062 $ 2,217 (54,769) - (165,375) - (3,763) 653,838 - - - 353,400 6,921,093 (6,267,255) 134

2016 Comprehensive Annual Financial Report for the City of Dover, Delaware Financial Section – Supplementary Information – Part E CITY OF DOVER ELECTRIC IMPROVEMENT AND EXTENSION FUND SCHEDULE OF REVENUES AND EXPENSES BUDGET (NON-GAAP BASIS) AND ACTUAL YEAR ENDED JUNE 30, 2016 VARIANCE ORIGINAL FINAL POSITIVE BUDGET BUDGET ACTUAL (NEGATIVE) Beginning Balance - Working Capital $ 3,623,600 $ 7,095,300 $ 7,095,270 $ (30) TOTAL BEGINNING BALANCES 3,623,600 7,095,300 7,095,270 (30) D REVENUES: Transfer from Electric Revenue Fund Bond Proceeds Miscellaneous Receipts Interest Earnings Income from Sale of Assets General Service Billing Total Revenues 3,500,000 - - 26,700 - 1,900,000 5,426,700 3,500,000 2,108,000 15,000 57,900 - 1,900,000 7,580,900 3,665,375 1,942,628 - 92,608 6,200 327,453 6,034,264 165,375 (165,372) (15,000) 34,708 6,200 (1,572,547) (1,546,636) TOTAL BEGINNING BALANCES & REVENUES EXPENSES: R Power Plant Transmission/Distribution Engineering Meter Reading Total Expenses $ $ 9,050,300 1,655,000 2,887,600 1,724,300 - 6,266,900 $ 14,676,200 $ 2,299,800 3,524,900 3,288,000 23,000 9,135,700 $ 13,129,534 $ 964,880 1,109,450 1,740,853 - 3,815,183 $ (1,546,666) $ 1,334,920 2,415,450 1,547,147 23,000 5,320,517 AF Budget Balance - Improvement & Extension Fund 2,783,400 5,540,500 9,314,351 (3,773,851) Total Budget Balances - Working Capital 2,783,400 5,540,500 9,314,351 (3,773,851) TOTAL BUDGET BALANCES & EXPENSES $ 9,050,300 $ 14,676,200 $ 13,129,534 $ 1,546,666 T 135

2016 Comprehensive Annual Financial Report for the City of Dover, Delaware Financial Section – Supplementary Information – Part E D 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 R 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. AF T 136

2016 Comprehensive Annual Financial Report for the City of Dover, Delaware Financial Section – Supplementary Information – Part E CITY OF DOVER INTERNAL SERVICE FUND - WORKERS' COMPENSATION SCHEDULE OF REVENUES AND EXPENSES BUDGET (NON-GAAP BASIS) AND ACTUAL YEAR ENDED JUNE 30, 2016 VARIANCE ORIGINAL FINAL POSITIVE BUDGET BUDGET ACTUAL (NEGATIVE) D OPERATING REVENUES: Beginning Balance Interest Earned City Contribution Miscellaneous Revenue TOTAL REVENUES $ 1,052,600 10,600 642,500 - $ 1,705,700 $ 1,248,200 20,700 620,000 9,400 $ 1,898,300 $ 1,248,164 23,653 679,064 9,489 $ 1,960,370 $ $ (36) 2,953 59,064 89 62,070 R OPERATING EXPENSES: Program Expenses Contractual Services Insurance Bank Fees $ 475,000 25,000 103,900 1,300 $ 475,000 25,000 103,900 - $ 561,086 4,000 105,416 - $ (86,086) 21,000 (1,516) - AF State of Delaware - Self-Insurance Tax 37,000 38,100 38,041 59 TOTAL EXPENSES $ 642,200 $ 642,000 $ 708,543 $ (66,543) BUDGET BALANCE - CARRY FORWARD $ 1,063,500 $ 1,256,300 $ 1,251,827 $ (4,473) T 137

2016 Comprehensive Annual Financial Report for the City of Dover, Delaware Financial Section – Supplementary Information – Part E D FINANCIAL STATEMENTS FIDUCIARY FUND TYPES DOWNTOWN DOVER PARTNERSHIP AGENCIES The City established the Downtown Dover Partnership as an agency for the development of the downtown urban area. R 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. AF T 138

2016 Comprehensive Annual Financial Report for the City of Dover, Delaware Financial Section – Supplementary Information – Part E CITY OF DOVER COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES ALL AGENCY FUNDS YEAR ENDED JUNE 30, 2016 BALANCE BALANCE JUNE 30, 2015 ADDITIONS DEDUCTIONS 30-Jun-16 DOWNTOWN DOVER PARTNERSHIP ASSETS: Cash $ 764,480 $ 688,809 $ 904,962 $ 548,327 Receivables 49,685 4,330 53,881 134 DPrepaid Items Total Assets LIABILITIES: Vouchers Payable Deposit Payable Due to Agencies $ - 814,165 17,595 27,432 769,138 $ $ 94 693,233 732,387 - - $ $ - 958,843 733,540 - 264,457 $ $ 94 548,555 16,442 27,432 504,681 R Total Liabilities 4TH JULY CELEBRATION COMMITTEE ASSETS: Cash Prepaid items Total Assets $ $ $ 814,165 31,455 1,000 32,455 $ $ $ 732,387 19,854 - 19,854 $ $ $ 997,997 23,007 500 23,507 $ $ $ 548,555 28,302 500 28,802 AF LIABILITIES: Vouchers Payable $ - $ 22,572 $ 22,572 $ - Due to Agencies 32,455 19,854 23,507 28,802 Total Liabilities $ 32,455 $ 42,426 $ 46,079 $ 28,802 TOTAL-ALL AGENCY FUNDS ASSETS: Cash & Investments $ 795,935 $ 708,663 $ 927,969 $ 576,629 Receivables 49,685 4,330 53,881 134 Prepaid Items 1,000 94 500 594 Total Assets $ 846,620 $ 713,087 $ 982,350 $ 577,357 LIABILITIES: Vouchers Payable Deposit Payable Due to Agencies Total Liabilities $ $ 17,595 27,432 801,593 846,620 $ $ T 754,959 - 19,854 774,813 $ $ 756,112 - 287,964 1,044,076 $ $ 16,442 27,432 533,483 577,357 139

D R AF This section of the City of Dover’s Comprehensive Annual 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. T

2016 Comprehensive Annual Financial Report for the City of Dover, Delaware Financial Section – Statistical Section D R AF Amanda Debus was crowned Miss Delaware 2016 June 12, 2016 at Dover Downs Hotel & Casino. Credit Photo: pageantsnews.com T 141

2016 Comprehensive Annual Financial Report for the City of Dover, Delaware Financial Section – Statistical Section D 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 R financial health. These schedules contain trend information to help the reader understand how the City’s financial performance and well-being have changed over time. AF These schedules contain information to help the reader assess the City’s most significant local revenue source, property tax. 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. These schedules offer demographic and economic indicators to help the reader understand the environment within which the City’s financial activities take place. T 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. 142

2016 Comprehensive Annual Financial Report for the City of Dover, Delaware Financial Section – Statistical Section D R AF Johnny Martinez after receiving his diploma during DHS's 2016 graduation. Credit Photo: Dover Post, David Paulk 143 T

2016 Comprehensive Annual Financial Report for the City of Dover, Delaware Financial Section – Statistical Section Table 1 City of Dover Net Position by Component Last Ten Fiscal Years (Accrual basis of accounting) D Governmental Activities Net investment in capital assets Restricted Unrestricted Total governmental activities net position Business-type activities Net investment in capital assets 2016 (22,214,284) 32,779,778 110,647,045 2015 $ 54,061,334 $ 51,485,408 $ 50,738,483 $ 49,577,021 $ 49,642,124 $ 38,839,995 $ 35,742,504 932,728 556,553 (27,947,709) 24,094,252 (7,142,570) 108,565,514 612,054 44,207,967 2014 721,682 (4,791,553) 45,507,150 101,670,949 2013 482,780 (6,759,433) 43,365,471 100,079,972 2012 1,774,167 (99,435) 40,514,727 98,303,263 Fiscal Year 2011 1,250,342 4,820,682 41,813,528 97,270,906 2010 96,660,480 2009 $ 35,752,624 1,758,470 9,536,614 47,047,708 91,471,776 2008 $ 35,255,463 1,602,932 15,155,125 52,013,520 101,154,934 2007 $ 29,709,046 1,591,678 13,849,061 45,149,785 89,289,351 Restricted Unrestricted Total business-type activities net position Primary government Net investment in capital assets Restricted Unrestricted Total primary government net position NOTE R 37,026,527 26,876,166 174,549,738 164,708,379 37,959,255 4,661,882 $ 207,329,516 36,751,850 21,732,221 167,049,585 160,050,922 37,308,403 (6,215,488) 36,123,755 36,098,998 173,893,702 152,409,432 36,735,809 28,956,428 $ 191,143,837 $ 218,101,669 The fiscal years prior to 2015 show fund balances as they were reported prior to GASB 68. 34,665,736 39,534,763 174,280,471 149,656,993 35,387,418 34,743,210 $ 219,787,621 33,836,315 33,947,753 166,087,331 147,945,387 34,319,095 27,188,320 $ 209,452,802 34,148,330 23,286,232 154,705,468 136,110,901 35,922,497 23,186,797 $ 195,220,195 31,302,487 19,318,633 147,281,600 132,402,984 32,552,829 24,139,315 $ 189,095,128 34,372,050 18,614,907 144,458,733 127,224,400 36,130,520 28,151,521 $ 191,506,441 23,758,183 16,263,139 141,176,256 136,410,397 25,361,115 31,418,264 $ 193,189,776 29,762,946 14,371,418 133,423,715 118,998,397 31,354,624 28,220,479 $ 178,573,500 AF T 144

2016 Comprehensive Annual Financial Report for the City of Dover, Delaware Financial Section – Statistical Section Table 2 City of Dover Changes in Net Position Last Ten Fiscal Years (Accrual basis of accounting) D Expenses Governmental activities: General government Public safety Public Works Library and recreation Community and economic development Central services Financial administration $ 2016 4,672,477 20,159,412 7,381,557 2,183,802 551,879 483,426 1,249,012 $ 2015 3,374,955 21,336,042 3,848,402 3,079,426 444,474 443,072 1,247,976 2014 $ 1,288,977 19,219,986 6,594,829 2,942,800 676,554 512,586 1,368,048 2013 $ 1,474,045 17,989,463 6,099,484 2,313,048 939,966 454,816 1,122,830 2012 $ 1,180,327 17,638,304 8,135,172 2,377,363 773,208 469,385 1,146,524 Fiscal Year 2011 $ 1,248,124 16,848,343 6,257,946 2,731,492 1,173,546 599,498 2,463,426 2010 $ 1,510,308 16,357,692 7,115,319 2,265,205 2,228,744 544,611 2,353,180 2009 $ 1,855,983 15,929,187 7,539,463 2,417,236 724,555 550,886 2,557,465 2008 $ 1,384,276 15,120,737 4,355,206 2,108,664 497,914 586,274 1,425,074 $ 2007 1,472,104 14,509,849 4,791,235 1,875,872 639,545 552,042 1,588,425 Other post-employment benefits Interest on long-term debt Total governmental activities expenses Business-type activities Water and Sewer Electric Total business-type activities Total primary government expenses Program Revenues Governmental activities: Charges for services: R - 118,565 36,800,130 11,925,299 60,795,651 72,720,950 109,521,080 - 174,912 33,949,259 11,322,958 67,562,077 78,885,035 112,834,294 3,348,267 122,812 36,074,859 11,397,992 74,481,048 85,879,040 121,953,899 5,119,778 114,785 35,628,215 10,905,358 74,595,585 85,500,943 121,129,158 6,534,630 90,161 38,345,074 11,068,607 77,625,673 88,694,280 127,039,354 6,142,627 75,397 37,540,399 10,912,722 90,296,244 101,208,966 138,749,365 2,843,480 78,581 35,297,120 11,971,445 90,940,056 102,911,501 138,208,621 2,441,541 87,491 34,103,807 11,196,913 94,475,940 105,672,853 139,776,660 - 82,657 25,560,802 10,387,198 88,442,048 98,829,246 124,390,048 - 106,815 25,535,887 9,846,771 88,297,987 98,144,758 123,680,645 AF General government 2,336,389 2,116,233 2,137,574 2,463,437 4,043,168 1,503,243 1,307,296 1,426,972 1,603,935 1,683,817 Public safety 4,920,783 4,558,200 4,676,162 4,240,847 4,803,827 4,682,687 4,309,516 4,358,641 4,571,911 4,499,315 Public works 2,527,478 2,578,892 2,595,648 2,624,877 1,903,623 2,173,434 1,340,729 1,396,801 1,334,492 1,312,328 Library and recreation 667,996 696,179 699,622 656,001 632,824 632,861 650,283 715,404 788,875 1,100,412 Operating grants and contributions 2,759,367 2,298,936 2,159,616 2,914,696 2,654,051 5,032,926 3,813,842 2,758,194 2,511,244 3,108,545 Capital grants and contributions 675,784 166,379 1,226,559 2,107,444 6,292,303 856,338 169,130 1,090,838 647,724 790,612 Total governmental activities program revenues 13,887,797 12,414,819 13,495,181 15,007,302 20,329,796 14,881,489 11,590,796 11,746,850 11,458,181 12,495,029 (Continued) 145 T

2016 Comprehensive Annual Financial Report for the City of Dover, Delaware Financial Section – Statistical Section (Table 2 Continued - Changes in Net Position) Fiscal Year Fiscal Year 2016 2015 2014 2013 2012 2011 2010 2009 2008 2007 Program Revenues Business-type activities: Charges for services: Water and Sewer 14,976,213 14,875,806 13,268,213 13,387,706 13,775,833 14,033,678 11,531,595 11,319,027 12,158,812 11,819,643 D Electric Capital Contributions Total business-type activities program revenues Total primary government program revenues Net (expense)/revenue: Governmental activities Business-type activities Total primary government net revenue (expense) General Revenues and Other Changes in Net Position Governmental activities: Property taxes 80,695,910 44,955 95,717,078 109,604,875 (22,912,333) 22,996,128 83,795 12,846,774 79,802,674 1,516,932 96,195,412 108,610,231 (21,534,440) 17,310,377 (4,224,063) 11,176,763 79,489,192 401,947 93,159,352 106,654,533 (22,579,678) 7,280,312 (15,299,366) 11,094,479 90,685,693 - 104,073,399 119,080,701 (20,620,913) 18,572,456 (2,048,457) 11,126,395 93,529,401 441,285 107,746,519 128,076,315 (18,015,278) 19,052,239 1,036,961 11,050,198 101,902,619 997,750 116,934,047 131,815,536 (22,658,910) 15,725,081 (6,933,829) 10,904,908 100,278,474 392,855 112,202,924 123,793,720 (23,706,324) 9,291,423 (14,414,901) 10,029,584 101,420,982 - 112,740,009 124,486,859 (22,356,957) 7,067,156 (15,289,801) 10,075,401 96,858,790 2,078,040 111,095,642 122,553,823 (14,102,621) 12,266,396 (1,836,225) 9,557,982 87,014,071 705,572 99,539,286 112,034,315 (13,040,858) 1,394,528 (11,646,330) 9,032,995 Transfer taxes Investment earnings Transfers Total governmental activities Business-type activities: Investment earnings Transfers Total business-type activities Total primary government Change in Net Position Government activities R 2,191,915 263,667 16,295,503 31,597,859 799,528 (16,295,503) (15,495,975) 16,101,884 8,685,526 1,713,505 92,479 10,500,000 23,482,747 544,624 (10,500,000) (9,955,376) 13,527,371 1,948,307 1,543,626 142,390 8,500,000 21,280,495 832,919 (8,500,000) (7,667,081) 13,613,414 (1,299,183) 1,107,686 36,793 10,491,718 22,762,592 112,402 (10,491,718) (10,379,316) 12,383,276 2,141,679 1,373,103 141,925 8,300,796 20,866,022 630,420 (8,300,796) (7,670,376) 13,195,646 2,850,744 1,461,983 137,218 8,856,000 21,360,109 554,787 (8,856,000) (8,301,213) 13,058,896 (1,298,801) 867,692 268,748 7,306,120 18,472,144 837,564 (7,306,120) (6,468,556) 12,003,588 (5,234,180) 1,197,425 585,264 5,533,055 17,391,145 1,748,376 (5,533,055) (3,784,679) 13,606,466 (4,965,812) 3,515,422 726,683 7,166,269 20,966,356 2,652,414 (7,166,269) (4,513,855) 16,452,501 6,863,735 3,008,371 1,230,540 5,385,000 18,656,906 2,664,831 (5,385,000) (2,720,169) 15,936,737 5,616,048 AF Business-type activities 7,500,153 7,355,001 (386,769) 8,193,140 11,381,863 7,423,868 2,822,867 3,282,477 7,752,541 (1,325,641) Total primary government $ 16,185,679 $ 9,303,308 $ (1,685,952) $ 10,334,819 $ 14,232,607 $ 6,125,067 $ (2,411,313) $ (1,683,335) $ 14,616,276 $ 4,290,407 NOTE The Change in Net Position for fiscal 2015 includes a prior period adjustment for the Net Pension Liability associated with GASB 68. 146 T

2016 Comprehensive Annual Financial Report for the City of Dover, Delaware Financial Section – Statistical Section Table 3 City of Dover Fund Balances of Governmental Funds Last Ten Fiscal Years (Modified accrual basis of accounting) D General Fund Reserved Unreserved Non-spendable Restricted Committed Assigned Unassigned $ 2016 - - 195,134 173,769 1,059,197 2,735,602 4,995,522 $ 2015 - - 202,620 127,706 1,041,130 3,839,571 3,991,442 $ 2014 - - 207,884 129,476 723,300 3,163,431 3,435,079 $ 2013 - - 227,457 131,237 936,899 3,519,012 3,391,714 $ 2012 Fiscal Year - - 198,175 83,356 920,475 658,890 3,007,983 $ 2011 - - 191,567 85,070 3,484,203 614,559 3,385,209 $ 2010 315,580 7,242,323 - - - - - $ 2009 709,817 8,305,396 - - - - - $ 2008 528,145 9,387,795 - - - - - 2007 $ 2,023,169 7,046,831 - - - - - Total General Fund All other governmental funds Special revenue funds Unreserved Non-spendable Restricted Assigned Total all other governmental funds Total fund balances R 9,159,224 - 350 758,959 759,309 $ 9,918,533 - 9,202,469 - 181 428,847 429,028 $ 9,631,497 - 7,659,170 2,447 482,578 - 485,025 $ 8,144,195 - 8,206,319 - - 590,445 123,349 713,794 $ 8,920,113 4,868,879 - 13,099 399,424 171,381 583,904 $ 5,452,783 7,760,608 - 4,203 764,512 289,221 1,057,936 $ 8,818,544 7,557,903 872,309 $ 8,430,212 - - - 872,309 9,015,213 881,332 881,332 $ 9,896,545 - - - 9,915,940 5,180,097 5,180,097 $ 15,096,037 - - - 9,070,000 5,248,929 - - - 5,248,929 $ 14,318,929 AF NOTE The fiscal years prior to 2011 show fund balances as they were classified and reported prior to GASB 54. 147 T

2016 Comprehensive Annual Financial Report for the City of Dover, Delaware Financial Section – Statistical Section Table 4 City of Dover Changes in Fund Balances of Governmental Funds Last Ten Fiscal Years (Modified accrual basis of accounting) Revenues Fines Library revenue Licenses and permits Sanitation fees and rebates Recreation Miscellaneous services Taxes D 2016 $ 1,128,211 419,677 3,525,992 2,527,478 65,145 1,874,534 15,085,481 2015 $ 1,161,876 480,823 2,893,990 2,578,892 66,038 1,650,153 12,930,532 2014 $ 1,011,156 498,553 2,952,015 2,595,648 49,144 1,831,683 12,655,035 $ 2013 912,004 471,065 2,548,913 2,624,877 40,446 2,470,200 12,333,520 2012 Fiscal Year $ 1,202,615 475,822 2,816,866 1,903,623 44,522 3,940,294 12,462,532 2011 $ 1,665,496 444,455 2,417,363 2,173,434 44,292 1,480,845 12,366,891 2010 $ 1,418,354 465,387 2,424,768 1,340,729 36,100 1,247,096 10,897,276 2009 $ 1,323,041 514,458 2,599,948 1,396,801 47,079 1,278,251 11,272,826 2008 $ 1,262,180 517,697 2,916,749 1,333,436 34,111 1,351,160 13,073,404 2007 $ 1,314,246 989,006 2,689,348 1,293,399 12,793 1,367,960 12,041,366 Grants Court of Chancery fees Investment income Total revenues Expenditures General government Library services Public safety Public works R 3,449,238 1,239,300 234,885 29,549,941 1,876,387 1,720,021 21,480,868 2,146,917 2,489,239 1,118,680 77,769 25,447,992 1,425,786 1,675,989 20,218,519 1,708,658 3,416,319 1,034,460 122,490 26,166,503 1,271,523 1,697,982 19,130,832 2,572,965 5,119,089 917,700 45,198 27,483,012 1,107,122 5,514,217 18,048,642 1,758,405 8,909,758 863,220 117,405 32,736,657 1,093,772 13,518,569 17,001,619 2,074,061 5,551,175 766,340 112,722 27,023,013 1,348,911 4,369,578 16,139,953 2,535,060 4,482,259 675,390 237,631 23,224,990 1,525,854 1,951,347 15,948,298 2,504,061 3,513,365 738,240 513,873 23,197,882 1,661,742 2,150,585 15,680,044 3,219,659 3,148,194 883,880 638,782 25,159,593 1,319,774 1,391,974 15,068,451 2,928,236 4,550,607 929,120 1,154,829 26,342,674 1,000,622 1,253,300 15,055,746 2,551,962 AF Recreational services 783,976 865,938 683,363 651,341 827,230 834,124 746,868 869,134 2,699,725 1,452,987 Streets and sanitation services 6,081,813 6,574,262 4,634,091 2,990,430 3,280,165 3,383,465 3,181,025 3,279,188 3,675,282 3,018,222 Engineering services 166,579 26,996 - - - - - - - 314,728 Financial administration 919,086 979,112 1,002,539 909,877 902,009 866,314 895,570 1,009,240 1,055,619 829,002 Garage and stores 465,843 419,597 415,593 431,542 503,036 490,113 526,286 491,450 486,966 402,915 Insurance 280,901 278,682 272,895 241,395 198,241 203,343 197,723 199,643 176,947 165,584 Retiree health care lump sum 1,567,700 1,636,500 1,636,500 1,620,600 1,614,241 1,297,509 1,006,397 3,265,857 758,185 736,286 Employee pension unfunded liability 594,300 543,000 121,000 1,693,500 1,545,000 1,544,978 - - 134,775 402,204 Street lights 804,246 775,197 774,533 878,760 986,430 968,562 956,860 937,013 917,438 624,243 Community and economic development 551,879 444,474 676,554 939,966 773,208 1,173,546 2,228,744 724,555 497,914 639,545 (Continued) 148 T

2016 Comprehensive Annual Financial Report for the City of Dover, Delaware Financial Section – Statistical Section (Table 4 - Continued Changes in Fund Balances of Governmental Funds) Fiscal Year 2016 2015 2014 2013 2012 2011 2010 2009 2008 2007 Expenditures Debt service Principal 553,824 848,069 429,239 296,003 275,000 270,000 260,000 365,000 350,000 368,384 DInterest Other charges (issuance of debt) Total expenditures Excess of revenues over(under) expenditures Other financing sources (uses) Bond proceeds Transfers in Transfers out Total other financing sources (uses) 118,565 - 40,112,905 (10,562,964) - 14,339,821 (3,489,821) 10,850,000 114,243 60,668 38,595,690 (13,147,698) 4,135,000 13,500,366 (3,000,366) 14,635,000 122,812 - 35,442,421 (9,275,918) - 11,458,445 (2,958,445) 8,500,000 73,071 1,029 37,155,900 (9,672,888) 2,648,500 12,666,208 (2,174,490) 13,140,218 52,734 27,255 44,672,570 (11,935,913) 851,500 10,959,204 (2,658,408) 9,152,296 65,225 - 35,490,681 (8,467,668) - 12,420,329 (3,564,329) 8,856,000 68,410 - 31,997,443 (8,772,453) - 9,156,575 (1,850,455) 7,306,120 77,319 - 33,930,429 (10,732,547) - 12,683,925 (7,150,870) 5,533,055 87,468 - 31,548,754 (6,389,161) - 12,369,176 (5,202,907) 7,166,269 96,644 - 28,912,374 (2,569,700) - 8,316,722 (2,931,722) 5,385,000 Net change in fund balances Debt service as a percentage of noncapital expenditures Capital outlay included in total expenditures (1) NOTES R $ 287,036 1.94% $ 5,489,748 $ 1,487,302 3.09% $ 7,500,186 $ (775,918) $ 3,467,330 1.74% $ 3,777,578 1.14% $ 4,872,122 $ (2,783,617) $ 1.07% $ 13,927,288 388,332 0.85% $ 5,296,536 $ (1,466,333) $ (5,199,492) $ 1.05% $ 2,434,391 (1) Capital outlay has been included in functional expenditures. Debt service as a percentage of non-capital expenditures excludes capital outlay expenditures. 1.42% $ 2,698,627 777,108 1.49% $ 4,559,625 $ 2,815,300 1.66% $ 3,554,679 AF T 149

2016 Comprehensive Annual Financial Report for the City of Dover, Delaware Financial Section – Statistical Section Table 5 City of Dover Governmental Activities Tax Revenues by Source Last Ten Fiscal Years (accrual basis of accounting) Fiscal Property Transfer Year Tax Tax Total D 2016 2015 2014 2013 2012 2011 2010 $ 12,846,772 11,176,763 11,094,479 11,126,395 11,050,198 10,904,908 10,029,584 $ 2,191,915 1,713,788 1,543,626 1,107,686 1,373,103 1,461,983 867,692 $ 15,038,687 12,890,551 12,638,105 12,234,081 12,423,301 12,366,891 10,897,276 R NOTES 2009 2008 2007 10,075,401 9,557,982 9,032,995 1,197,425 3,515,422 3,008,371 1. Property Tax rate $.4050 per $100 of 100% assessed value 11,272,826 13,073,404 12,041,366 AF (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. 150 T

2016 Comprehensive Annual Financial Report for the City of Dover, Delaware Financial Section – Statistical Section 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 D Year 2016 2015 2014 2013 2012 2011 2010 Value $ 4,443,188,600 4,584,108,050 4,525,547,960 4,510,303,860 4,469,369,160 4,363,518,360 4,139,869,700 Properties $ 1,335,276,500 1,376,954,490 1,365,654,100 1,328,807,500 1,300,061,400 1,226,879,300 1,232,858,580 Assessed Value $ 3,107,912,100 3,207,153,560 3,159,893,860 3,181,496,360 3,169,307,760 3,136,639,060 2,907,011,120 Actual Value $ 4,443,188,600 4,584,108,050 4,525,547,960 4,510,303,860 4,469,369,160 4,363,518,360 4,139,869,700 Assessed Value 69.95% 69.96% 69.82% 70.54% 70.91% 71.88% 70.22% Per $100 $ 0.4050 0.3378 0.3378 0.3378 0.3378 0.3378 0.3300 2009 2008 2007 NOTES R 1 4,124,562,920 3,406,762,915 3,516,580,775 1,225,269,600 616,277,700 618,433,400 Source: Tax Assessor's Office, City of Dover. 2,899,293,320 2,790,485,215 2,898,147,375 4,124,562,920 3,406,762,915 3,516,580,775 There is no tax on personal properties. Therefore, no figures are presented. 70.29% 81.91% 82.41% 0.3300 0.3300 0.3300 AF 2. In 2003 the City changed assessed values to 100% of estimated actual values from 60%. In doing so, the tax rate was lowered from $ .685 to $ .411 per $100. Had the tax rate been rolled back to a revenue neutral rate, the rate would have been $ .3310 per $100. The revised rate represents an $ .08 increase. 3. In 2005, the City property values were reassessed, effective for tax year 2006. The tax rate was lowered from $ .411 to $ .330 per $100. Had the tax rate been rolled back to a revenue neutral rate, the rate would have been $ .310 per $100. The revised rate represents a $ .02 increase. 4. In 2010, the City property values were reassessed, effective for tax year 2011. The tax rate was increased from $ .330 to $ .3378 per $100. Had the tax rate been rolled back to a revenue neutral rate, the rate would have been $ .3108 per $100. The revised rate represents a $ .027 rate increase. 5 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. 151 T

2016 Comprehensive Annual Financial Report for the City of Dover, Delaware Financial Section – Statistical Section Table 7 City of Dover, Delaware NOTES Property Tax Rates - All Direct and Overlapping Governments with the Capital School District 1. Section 48 of the City of (Per $100 of Assessed Value) Dover charter provides Last Ten Fiscal Years that the amount of money to be raised through property taxes shall not exceed 2% of the total taxable assessment. Direct Overlapping D 2. Kent County Property tax rates reflect the 1987 reappraisal of properties in Kent County. 3. In 2010, the City property values were reassessed, effective for tax year 2011 Fiscal Year 2016 2015 2014 2013 2012 City of Dover $ 0.4050 0.3378 0.3378 0.3378 0.3378 Kent County $ 0.300 0.300 0.300 0.300 0.300 Capital School District $ 1.812 1.822 1.850 1.909 1.832 Vo-Tech School District $ 0.1415 0.1372 0.1372 0.1372 0.1351 $ Total Direct & Overlapping 2.658 2.597 2.625 2.684 2.605 R Tax rate increased to $.3378 4. In 2015, the City property values were reassessed, effective for tax year 2016 Tax rate increased to $.4050 2011 2010 2009 2008 2007 Sources: 0.3378 0.3300 0.3300 0.3300 0.3300 0.300 0.310 0.310 0.250 0.250 Tax Assessor's Office - City 1.832 1.769 1.543 1.480 1.534 Receiver of Taxes Office - Kent County 0.1351 0.1304 0.1219 0.1219 0.1160 2.605 2.539 2.305 2.182 2.230 AF Property Tax Rates - FY 2016 All Direct & Overlapping Governments City of Dover Kent County Capital School 152 TVo-Tech School

2016 Comprehensive Annual Financial Report for the City of Dover, Delaware Financial Section – Statistical Section Table 8 City of Dover, Delaware Principal Tax Payers Current Year and Nine Years Ago PERCENTAGE PERCENTAGE OF TOTAL OF TOTAL 2016 TAXABLE 2007 TAXABLE ASSESSED ASSESSED ASSESSED ASSESSED TAX PAYERS VALUATION RANK VALUATION VALUATION RANK VALUATION D Dover Downs Prop, Inc. Dover Mall LP/Dover Commons Dover Medical Center Dover South Coast Partnership Kraft-General Foods Corp. $ 147,924,900 89,455,200 27,069,300 23,071,400 21,534,700 1 2 3 4 5 4.83% 2.92% 0.88% 0.75% 0.70% $ 98,824,600 68,301,000 - 14,470,300 20,624,800 1 2 - 8 3 3.41% 2.36% - 0.50% 0.71% R GM Country Club LLC Multi Residential M LLC Blue Hen Apt LLC Millers Dover Downs 15,788,600 14,415,500 13,813,100 13,573,400 6 7 8 9 0.52% 0.47% 0.45% 0.44% 11,015,800 10,343,500 - 14,528,900 - - - 7 0.38% 0.36% - 0.50% AF The Dover Wipes Co 13,252,100 10 0.43% 10,979,800 - 0.38% Dover Bay Court Plaza - - - 19,062,300 4 0.66% Berks City Real Estate LLC - - - 18,034,400 5 0.62% Dover East Estates - - - 11,647,200 9 0.40% K.W. Lands/Sheraton/Hampton - - - 11,382,100 10 0.39% Country Village Associates - - - 15,691,800 6 0.54% - $ 379,898,200 12.41% $ 324,906,500 11.21% Source: Tax Assessor's Office, City of Dover Total taxable assessed valuation for current year is Total taxable assessed valuation for ten years ago is 153 T 3,061,687,700 2,898,147,375

2016 Comprehensive Annual Financial Report for the City of Dover, Delaware Financial Section – Statistical Section 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 D2016 2015 2014 2013 2012 2011 2010 $ 12,437,857 10,737,703 10,696,886 10,594,623 10,549,631 10,481,734 9,525,034 $ 12,204,948 10,612,272 10,493,954 10,398,888 10,280,930 10,166,681 9,314,327 98.1% 98.8% 98.1% 98.2% 97.5% 97.0% 97.8% $ - 120,738 201,637 195,459 268,327 314,826 210,707 $ 12,204,948 10,733,010 10,695,591 10,594,347 10,549,257 10,481,507 9,525,034 98.13% 99.96% 99.99% 100.00% 100.00% 100.00% 100.00% 2009 2008 2007 R 9,512,522 9,074,777 8,448,462 9,206,158 8,937,384 8,242,898 Source: City of Dover Assessor & Customer Service Reports. 96.8% 98.5% 97.6% 306,364 137,393 205,564 9,512,522 9,074,777 8,448,462 100.00% 100.00% 100.00% AF $13 $11 Millions $9 $7 $5 $3 $1 $(1) NOTES 1. 2. 3. 2016 2015 2014 2013 2012 2011 T 2010 2009 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. Total Tax Levy represents the annual tax billings, quarterly billings and adjustments from tax appeals. The table excludes payments in lieu of taxes and farm land roll back taxes. 154 2008 2007

2016 Comprehensive Annual Financial Report for the City of Dover, Delaware Financial Section – Statistical Section Table 10 City of Dover Ratios of Outstanding Debt by Type D Fiscal Governmental Activities General Obligation Capital Water/Sewer Revenue Last Ten Fiscal Years Business-type Activities Electric Revenue Capital Total Primary Percentage of Personal Per Year 2016 2015 2014 2013 2012 $ Bonds 6,782,865 7,336,689 4,049,758 4,478,997 2,085,815 R $ Leases - - - - - Bonds $ 12,888,791 13,650,787 14,412,347 10,926,717 10,865,354 Bonds $ 19,315,000 21,680,000 23,940,000 26,110,000 27,995,025 $ Leases - - - - - Government $ 38,986,656 42,667,476 42,402,105 41,515,714 40,946,194 Income 4.6% 5.4% 5.4% 5.1% 5.0% Capita 1,041 1,134 1,130 1,138 1,129 Population 37,453 37,618 37,540 36,492 36,267 AF 2011 1,499,143 - 7,913,384 30,033,446 - 39,445,973 4.9% 1,070 36,047 2010 1,758,971 - 3,765,547 34,543,730 - 40,068,248 5.7% 1,112 36,559 2009 2,008,800 - 4,126,124 36,690,524 - 42,825,448 6.3% 1,200 35,997 2008 2,363,628 - 4,769,332 16,439,872 - 23,572,832 3.7% 690 35,503 2007 2,703,457 - 5,391,320 18,115,568 - 26,210,345 4.1% 807 34,689 Source: City of Dover Financial Records Population Source: Delaware Population Consortium Annual Population Projections 155 T

2016 Comprehensive Annual Financial Report for the City of Dover, Delaware Financial Section – Statistical Section Table 11 City of Dover, Delaware Ratio of Net General Obligation Bonded Debt To Assessed Value and Net Bonded Debt Per Capita Last Ten Fiscal Years Ratio D Fiscal Year 2016 Population 37,453 Net Taxable Assessed Value $ 3,061,687,700 Gross Bonded Debt $ 6,782,865 Net Bonded Debt $ 6,782,865 of Net Bonded Debt To Assessed Value 0.22% Net Bonded Debt Per Capita 181.10 R 2015 2014 2013 2012 2011 2010 37,618 37,540 36,492 36,267 36,047 36,559 3,169,706,860 3,159,893,860 3,181,496,360 3,169,307,760 3,136,639,060 2,907,011,120 7,336,689 4,049,758 4,478,997 2,085,815 1,499,143 1,550,000 7,336,689 4,049,758 4,478,997 2,085,815 1,499,143 1,550,000 0.23% 0.13% 0.14% 0.07% 0.05% 0.05% 195.03 107.88 122.74 57.51 41.59 42.40 AF 2009 35,997 2,899,293,320 1,550,000 1,550,000 0.05% 43.06 2008 35,503 2,790,485,215 2,080,000 2,080,000 0.07% 58.59 2007 34,689 2,898,147,375 2,445,000 2,445,000 0.09% 70.48 Source: City of Dover Financial Records, Tax Assessor’s Office and Delaware Population Consortium Annual Population Projections. NOTES 1. This table includes all long-term general obligation bonded debt only. The Enterprise Funds have no general obligation debt. T 2. Assessed value reflects the net billable tax base and does not include the exempt value, exemption for Senior Citizens and exemption for disability. 156

2016 Comprehensive Annual Financial Report for the City of Dover, Delaware Financial Section – Statistical Section 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 D Fiscal Year 2016 2015 $ Principal 553,824 848,069 $ Interest 118,565 114,243 $ Total Debt Service 672,389 962,312 $ Total General Expenditures(1) 46,477,667 45,484,211 to Total General Expenditures 1.45% 2.12% R2014 2013 2012 2011 2010 2009 2008 429,239 296,003 275,000 270,000 260,000 365,000 350,000 122,812 73,071 52,734 65,225 68,410 77,319 87,468 552,051 369,074 327,263 335,225 328,410 442,319 437,468 39,646,120 40,517,512 47,743,864 38,898,945 32,786,465 33,766,292 35,703,156 1.39% 0.91% 0.69% 0.86% 1.00% 1.31% 1.23% AF 2007 345,000 96,232 441,232 34,651,840 1.27% Source: City of Dover Financial Records. NOTES 1. The General Expenditures include all operating items, capital items and debt service. 157 T

2016 Comprehensive Annual Financial Report for the City of Dover, Delaware Financial Section – Statistical Section Table 13 City of Dover, Delaware Computation of Direct and Overlapping Debt with the Capital School District June 30, 2016 Percentage Amount Net Debt Applicable to Applicable to D City of Dover Jurisdiction $ Outstanding 6,782,865 City of Dover 100% $ City of Dover 6,782,865 R Kent County (1) Capital School District (2) 58,618,867 60,379,555 7% 4,299,325 N/A AF TOTAL $ 125,781,287 $ 11,082,190 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 $58,618,867 as of June 30, 2016. Although Kent County's bonds are general obligation bonds, $54,319,542 is payable from the Kent County Sewer Fund(s) or other committed sources. 2. Capital School District: As of June 30, 2016 the net outstanding debt was $60,379,555. Percentage and amount applicable to the City is not available. 158 T

2016 Comprehensive Annual Financial Report for the City of Dover, Delaware Financial Section – Statistical Section Table 14 D Debt Limit Net (Taxable) Assessed Value on Books 2016 $ 155,396 3,107,912 2015 $ 158,485 3,207,154 City of Dover, Delaware Computation of Legal Debt Margin Last Ten Fiscal Years (amounts expressed in thousands) 2014 $ 157,995 3,159,894 Fiscal Year 2013 $ 159,075 3,181,496 $ 2012 158,465 3,169,308 $ 2011 156,832 3,136,639 $ 2010 145,351 2,907,011 $ 2009 144,965 2,899,293 $ 2008 697,621 2,790,485 $ 2007 724,537 2,898,147 Total net debt applicable to limit Legal Debt Margin Total Net Debt applicable to limit as a percentage of debt limit Legal Debt Margin Calculation for Fiscal Year 2016 Net (Taxable) Assessed Value on Books R $ 6,783 148,613 4.36% $ 7,337 151,149 4.63% $ 3,107,912 $ 4,050 153,945 2.56% $ 4,479 154,596 2.82% $ 1,550 156,915 0.98% $ 1,820 155,012 1.16% $ 2,080 143,271 1.43% $ 2,445 142,520 1.69% $ 2,795 694,826 0.40% $ 3,140 721,397 0.43% AF Debt Limit - 5 Percent of Total Assessed Value $ 155,396 DEBT (For which the City's full faith and credit has been pledged) Gross Bonded Debt 6,783 LEGAL DEBT MARGIN $ 148,613 Source: City of Dover Financial Reports, City of Dover Charter, Section 50(b), and Tax Assessor's Office July 2009 the Charter was amended and the debt limit was reduced from 25% of the total assessed value to 5%. 159 T

2016 Comprehensive Annual Financial Report for the City of Dover, Delaware Financial Section – 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 D 2016 2015 2014 2013 2012 2011 2010 2009 2008 $ 80,588,158 79,769,994 79,476,865 90,876,162 93,650,277 102,734,764 100,316,323 101,562,292 97,354,991 $ 54,159,843 66,521,873 68,594,189 68,546,508 71,607,021 84,195,802 86,089,451 89,853,449 82,132,360 $ 26,428,315 13,248,121 10,882,676 22,329,654 22,043,256 18,538,962 14,226,872 11,708,843 15,222,631 $ 2,365,000 2,260,000 2,170,000 2,110,000 2,060,000 2,370,000 2,260,000 1,840,000 1,780,000 $ 918,704 1,036,954 1,131,854 1,205,554 1,260,054 1,609,192 1,716,134 1,753,447 828,076 $ 3,283,704 3,296,954 3,301,854 3,315,554 3,320,054 3,979,192 3,976,134 3,593,447 2,608,076 8.05 4.02 3.30 6.73 6.64 4.66 3.58 3.26 5.84 R 2007 87,606,858 83,006,505 Source: City of Dover Financial Records. 1. Coverage required by the bond resolution is 1.25. 4,600,353 2. Calculation of gross revenue for fiscal year 2016 is as NOTES 1,730,000 859,048 2,589,048 5. In August 2004, the City issued Electric Revenue refunding bonds in the amount of $22,535,000 to refund the outstanding Electric Revenue Bonds Series 1990 and 1.78 AF follows: Electric Revenue Refunding Bonds Series 1993. Gross Revenue: Operating Revenues $ 80,689,709 6. In July 2008, the City issued Electric Revenue bonds in the Interest Earned-Operating Funds (101,551) amount of $22,200,000. Fiscal year 2009 includes $1,026,999 Total Gross Revenue $ 80,588,158 of interest related to this bond issue. 3. Direct operating expenses do not include 7. In November 2011, the City issued Electric Revenue depreciation expense. Refunding Bonds in the amount of $8,810,000 to refund the 2004 Series. This refunding reduced the principal payable 4. Figures presented in this table compare the net revenue by $2,620,000. available for debt service to the debt service requirements of the same fiscal year. 160 T

2016 Comprehensive Annual Financial Report for the City of Dover, Delaware Financial Section – Statistical Section Table 16 City of Dover, Delaware Revenue Bond Coverage - Water/Wastewater Bonds Last Ten Fiscal Years Maximum Requirements Net Revenue Maximum Direct Available Debt Fiscal Gross Operating For Debt Service Actual D Year 2016 2015 2014 2013 2012 Revenue $ 15,060,084 14,887,389 13,307,253 13,282,782 13,647,145 Expenses $ 9,621,676 9,250,346 9,326,405 8,841,757 9,063,553 Service $ 5,438,408 5,637,043 3,980,848 4,441,025 4,583,592 Requirement Coverage $ 1,132,806 1,132,806 1,132,806 1,019,315 993,837 4.80 4.98 3.51 4.36 4.61 R 2011 2010 2009 2008 2007 13,758,048 11,204,911 11,067,901 11,594,402 12,294,847 9,222,105 10,319,728 9,510,814 8,763,407 8,242,898 Source: City of Dover Financial Records. 4,535,943 885,183 1,557,087 2,830,995 4,051,949 416,423 416,423 797,708 797,748 797,748 10.89 2.13 1.95 3.55 5.08 AF NOTES 1. Coverage required by bond resolution is 1.20. 2. The maximum debt service requirement presented above covers all revenue bond requirements. Rates were increased in 2011 for debt service coverage on multi-year projects. 3. Direct operating expenses do not include depreciation expense for coverage purposes as per the bond indenture. 4. In October 2003, the City issued Water and Sewer Revenue Bonds in the amount of $7,980,000. These bonds were issued to fully defease Water and Wastewater Revenue Bond Series 1986 B and to partially defease Water and Wastewater Revenue Bond Series 1993 and Series 1993 A and to provide approximately $1,600,000 for future capital projects. T 5. In Fiscal year 2013, various capital projects were completed. These capital projects were financed by three state revolving fund loans issued in 2009, 2010 & 2011 in the amount of $5.9 million, $2.4 million and $0.8 million respectively, resulting in an increase in debt service. 6. 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 2013 Water and Wastewater Revenue bonds and provide $4,005,960 for two capital projects. 161

2016 Comprehensive Annual Financial Report for the City of Dover, Delaware Financial Section – Statistical Section Table 17 Placeholder for the Water/Wastewater Fund 10 top customers D R AF T 162

2016 Comprehensive Annual Financial Report for the City of Dover, Delaware Financial Section – Statistical Section Table 18 City of Dover Top 10 Elecric Utility Customers Fiscal Year Ended June 30, 2016 % of Total Revenue % of Total Customer Kwh Kwh Billed Revenue D Dover Air Force Base Kraft Foods Global Inc Delware State University Kent General Hospital Edgewell Personal Care Brands Dover Downs Inc 52,455,030 46,405,326 29,211,041 25,508,094 24,708,839 23,434,061 7.4% $ 4,412,591 6.6% 4.1% 3.6% 3.5% 3.3% 3,593,946 2,596,663 2,249,160 2,234,404 2,081,540 5.6% 4.5% 3.3% 2.8% 2.8% 2.6% R State of Delaware Proctor and Gamble Company Capital School District Eden Hill Medical Center Totals for Top 10 Customers 14,483,502 14,520,984 9,977,684 4,642,800 245,347,361 2.1% 2.1% 1.4% 0.7% 34.8% 1,536,369 1,215,391 1,151,951 427,248 21,499,262 1.9% 1.5% 1.5% 0.5% 27.2% AF All Other 459,894,271 65.2% 57,655,376 72.8% Total for System 705,241,632 100.0% $ 79,154,638 100.0% 163 T

2016 Comprehensive Annual Financial Report for the City of Dover, Delaware Financial Section – Statistical Section Table 19 City of Dover Demographic and Economic Statistics Last Ten Calendar Years Per Capita Personal Personal Median School Unemployment Year Population Income Income Age Enrollment Rate D 2016 2015 2014 2013 2012 2011 2010 37,453 37,618 37,540 36,492 36,267 36,047 36,559 $ 842,783,433 $ 730,354,200 788,039,680 821,361,936 828,258,924 818,158,759 712,212,015 22,213 19,445 20,992 22,508 22,697 22,379 19,445 30.2 31.3 29.8 31.1 33.2 31.3 32.9 6,486 6,665 6,527 6,344 6,984 7,185 7,117 5.7% 7.4% 6.4% 9.6% 9.3% 9.9% 10.2% 2009 2008 2007 R 35,997 35,503 34,689 712,212,015 702,100,615 675,422,075 19,445 19,445 19,445 Population Source: Delaware Population Consortium Projection Series 32.9 32.9 32.9 Personal Income Source: Estimation based on Population times Per Capita Personal Income 6,996 6,977 6,973 10.2% 5.7% 3.8% AF Per Capita Personal Income Source: 2010 U.S. Census Data and the 2006-2010 American Community Survey 5-Yr Est. Median Age Source: 2010-2014 American Community Survey 5-Year Estimates Capital School Enrollment Source: includes kindergarten through 12th grade. Unemployment Rate Source: Delaware Department of Labor Statistics Not Seasonally Adjusted, May 2016 164 T

2016 Comprehensive Annual Financial Report for the City of Dover, Delaware Financial Section – Statistical Section Table 20 City of Dover, Delaware Major Employers Current Year and Nine Years Ago 2016 2007 Percentage of Percentage of Name Numbers of Total City Number of Total City Employees Rank Employment Employees Rank Employment Dover Air Force Base (1) 6,400 1 33.0% 8,000 1 36.0% (2) (3) State of Delaware 4,500 2 23.2% 4,819 2 39.6% D Bayhealth-Kent General & Milford Dover Downs Co., Inc. Delaware State University Kraft Foods Inc. Edgewell (4) Delaware Tech (2) 3,668 1,449 1,035 549 520 516 3 4 5 6 7 8 18.9% 7.5% 5.3% 2.8% 2.7% 2.7% 2,008 1061 600 520 720 - 4 5 8 9 7 - 9.0% 4.8% 2.7% 2.3% 3.2% - City of Dover Dover Mall LP NOTES R Proctor & Gamble Capital School District Source: City Manager/Mayor Office 394 335 - - 19,366 9 10 - - 2.0% 1.7% - - - 391 3,200 898 22,217 - 10 3 6 - 1.8% 14.4% 4.0% AF 1. Dover Air Force Base total includes active duty, reservists and civilian employees. 2. Number of employees working in Kent County. 3. Figures estimated by Employer 4. Energizer (formerly Playtex) is now Edgewell 165 T

2016 Comprehensive Annual Financial Report for the City of Dover, Delaware Financial Section – Statistical Section Table 21 City of Dover Full-time Equivalent City Government Employees by Function - Budgeted Last Ten Fiscal Years 2016 2015 2014 2013 2012 2011 2010 2009 2008 2007 Assessor 3.0 3.0 3.0 3.0 3.0 3.0 4.5 4.5 4.5 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 4.0 4.0 4.0 3.0 5.0 5.0 5.0 5.0 5.0 5.0 Customer Services 14.0 14.0 15.0 14.0 14.0 15.0 16.0 16.0 16.0 16.0 Facilities Management 7.0 7.0 7.0 9.0 12.0 13.0 13.0 13.0 13.0 12.0 Finance 8.0 8.0 8.0 8.0 8.0 8.0 8.0 8.0 8.0 8.0 D Fire Fleet Maintenance Human Resources Information Technology Library Mayor Parks and Recreation Police Civilian Police Law Enforcement Procurement & Inventory aka Central Services 5.0 6.0 3.0 4.0 13.0 1.0 5.0 33.0 101.0 3.0 6.0 6.0 3.0 5.0 14.0 1.0 5.0 31.0 93.0 3.0 8.0 6.0 3.0 5.0 13.0 1.0 5.0 31.0 93.0 4.0 6.0 6.0 3.0 5.0 13.0 1.0 5.0 29.0 93.0 4.0 6.0 6.0 3.0 5.0 12.0 1.0 6.0 29.0 93.0 6.0 6.0 6.0 3.0 7.0 17.5 1.0 8.0 29.0 91.0 6.0 6.0 6.0 4.0 8.0 18.0 1.0 8.0 29.0 90.0 8.0 6.0 6.0 4.0 8.0 18.0 1.0 8.0 29.0 93.0 8.0 6.0 6.0 4.0 8.0 18.0 1.0 8.0 29.0 93.0 8.0 6.0 6.0 4.0 8.0 17.0 1.0 5.0 29.0 91.0 8.0 R Public Services, Administration Public Services, Inspections Public Services, Life Safety Public Services, Economic Development Public Services, Engineering Planning Code Enforcement Community Development Public Works, Grounds Maintenance Public Works, Sanitation 6.0 6.0 3.0 3.0 3.0 6.0 5.0 - 13.0 10.0 5.0 6.0 3.0 3.0 3.0 5.0 5.0 - 13.0 11.0 5.0 6.0 3.0 3.0 - 4.5 5.0 0.5 14.0 11.0 6.0 7.0 3.0 3.0 - 4.5 4.0 0.5 14.0 11.0 5.0 7.0 3.0 3.0 - 5.0 4.0 1.0 14.0 13.0 4.0 7.0 4.0 3.0 - 5.0 4.5 1.0 15.0 12.0 4.0 7.0 4.0 3.0 - 6.0 5.0 1.0 16.0 13.0 4.0 7.0 4.0 3.0 - 6.0 5.0 1.0 16.0 13.0 5.0 16.0 - - - 5.0 - 1.0 16.0 13.0 4.0 15.0 - - - 5.0 - 1.0 16.0 13.0 AF Public Works, Streets 8.0 8.0 8.0 10.0 11.0 11.0 11.0 11.0 11.0 11.0 General Fund Total 277.0 269.0 270.0 269.0 279.0 289.0 298.5 301.5 298.5 288.0 Public Utilities, Electric Administration 4.0 3.0 3.0 3.0 4.0 4.0 4.0 4.0 4.0 3.0 Public Utilities, Electric Engineering 10.0 10.0 10.0 10.0 10.0 10.0 12.5 12.5 12.5 20.5 Public Utilities, Electric System OPS 5.0 5.0 5.0 5.0 5.0 5.0 5.0 5.0 5.0 - Public Utilities, Electric Meter Reading 4.0 3.0 3.0 3.0 3.0 3.0 4.0 4.0 5.0 5.0 Public Utilities, Electric Transmission & Distribution 24.0 24.0 24.0 24.0 25.0 25.0 28.0 28.0 28.0 29.0 Electric Fund Total 47.0 45.0 45.0 45.0 47.0 47.0 53.5 53.5 54.5 57.5 Public Utilities, Construction - 3.0 3.0 5.0 6.0 6.0 7.0 7.0 7.0 8.0 Public Utilities, Wastewater Engineering 5.0 5.0 5.0 6.0 6.0 6.0 8.0 8.0 8.0 3.0 Public Utilities, Wastewater T & D 11.0 11.0 11.0 10.0 10.0 9.0 11.0 11.0 11.0 11.0 Public Utilities, Water T & D 6.0 4.0 4.0 5.0 4.0 4.0 5.0 5.0 5.0 5.0 Public Utilities, Water Treatment Plant 13.0 11.0 11.0 10.0 10.0 10.0 10.0 10.0 10.0 9.0 Water Meter Reading - - - - - - 1.0 1.0 1.0 1.0 Water/Wastewater Fund Total 35.0 34.0 34.0 36.0 36.0 35.0 42.0 42.0 42.0 37.0 Total Full-Time Equivalents Source: City of Dover Budget 359.0 348.0 166 349.0 T 350.0 362.0 371.0 394.0 397.0 395.0 382.5

2016 Comprehensive Annual Financial Report for the City of Dover, Delaware Financial Section – Statistical Section Table 22 City of Dover, Delaware Operating Indicators and Capital Assets Used in Operations Last Ten Fiscal Years June 30, 2016 June 30, 2015 June 30, 2014 June 30, 2013 June 30, 2012 June 30, 2011 June 30, 2010 June 30, 2009 June 30, 2008 June 30, 2007 June 30, 2006 D Date of Incorporation Land area - Acres Land area - Square Miles Total Miles of Street City Maintained Miles of Streets State Maintained Miles of Streets Dover Population - U. S. Census data Dover Population - City Count Registered Voters Electric Utility: Generating Units Co-Generating Unit Feb. 16, 1829 15191.7 23.74 168.01 108.66 59.35 37,522 37,453 24,170 4 0 Feb. 16, 1829 14914.5 23.3 167.78 108.43 59.35 36,054 37,560 22,837 4 1 Feb. 16, 1829 14909.33 23.29 164.49 105.14 53.35 37,089 37,366 22,779 4 1 Feb. 16, 1829 14,909.33 23.29 164.08 104.73 59.35 36,047 36,492 21,998 4 1 Feb. 16, 1829 14,909.33 23.29 162.81 103.46 59.35 36,047 36,267 22,362 4 1 Feb. 16, 1829 14,909.33 23.29 158.94 101.59 57.35 36,047 36,047 21,454 4 1 Feb. 16, 1829 14,909.33 23.29 159.62 100.27 59.35 32,043 36,559 21,897 4 1 Feb. 16, 1829 14,904.90 22.586 159.62 100.27 59.35 32,043 35,997 21,897 4 1 Feb. 16, 1829 14,904.90 22.586 159.62 100.27 59.35 32,043 35,503 20,181 4 1 Feb. 16, 1829 14,914.27 23.303 155.62 96.27 59.35 32,043 34,689 19,084 4 1 Feb. 16, 1829 14,674.58 22.929 153.76 94.41 59.35 32,043 33,965 19,502 4 0 Total Units Generating Capacity Co-Generating Capactiy Area of Service Substations High Peak Load Customers: Residential Commercial Primary 69 KV Industrial Municipal - Total number of meters R 175 mw 0 mw 67.77 sq. mi. 15 158.5 mw 4 20,065 3,310 37 5 0 175 mw 175 mw 67.77 sq. mi. 15 158 mw 20,143 3,343 36 4 0 5 175 mw 175 mw 5 68 sq. mi. 15 164.162 mw 19,900 3,412 37 5 0 175 mw 175 mw 68 sq. mi. 15.00 171 mw 5 19,990 3,412 37 4 0 175 mw 175 mw 15.00 172 mw 19,908 3,354 39 4 0 5 68 sq. mi. 175 mw 175 mw 68 sq. mi. 15.00 162.6 mw 5 19,782 3,386 38 4 0 175 mw 175 mw 5 68 sq. mi. 15 164.082 mw 19,785 3,370 36 4 0 175 mw 175 mw 5 68 sq. mi. 15 155.656 mw 19,682 3,497 37 4 0 175 mw 175 mw 5 68 sq. mi. 15 175 mw 19,137 3,664 37 4 0 175 mw 175 mw 5 68 sq. mi. 15 176 mw 18,578 3,422 36 4 0 175 mw 175 mw 4 68 sq. mi. 16 160 18,297 3,280 32 4 149 AF Total Customers Sales $ $79,154,638 $78,406,554 $78,187,300 $88,329,610 $91,947,980 $99,513,157 $98,081,648 $99,642,490 $94,037,212 $83,109,810 $63,844,353 Total Customers Sales kWh 705,214,632 715,001,017 714,150,305 723,106,532 710,327,722 734,102,972 708,530,322 719,949,121 731,024,065 734,072,008 736,810,231 PowerSupply $ $42,292,251 $49,645,951 $57,003,103 $55,367,147 $58,758,032 $68,852,937 $72,508,956 $73,549,910 $68,648,786 $70,579,991 $42,293,895 kWh 740,871,000 756,867,000 762,254,000 752,869,000 738,190,000 768,254,000 751,250,000 751,171,000 782,081,000 788,824,000 781,466,220 Fire Department: Stations 2 2 2 2 2 2 2 2 2 2 2 Officers 8 8 8 8 8 8 8 8 8 8 8 Firemen - Membership (Volunteers-Active) 125 125 160 100 100 100 120 80 100 100 100 Equipment 10 16 15 15 15 14 14 14 18 14 14 (Continued) 167 T

2016 Comprehensive Annual Financial Report for the City of Dover, Delaware Financial Section – Statistical Section Table 22 (Continued) June 30, 2016 June 30, 2015 June 30, 2014 June 30, 2013 June 30, 2012 June 30, 2011 June 30, 2010 June 30, 2009 June 30, 2008 June 30, 2007 June 30, 2006 Parks and Recreation: Major Parks 3 3 3 3 3 3 3 3 3 3 3 Small Parks 24 24 24 24 24 22 22 22 22 22 22 Police Department: Station Automobiles Motorcycles Motor Boats Bicycles Golf Carts Trailers Books D Uniformed Personnel Specialty Vehicles Public Library: Audiovisual Materials (VCRs, DVDs, 1 100 80 7 0 7 7 6 2 106,493 1 89 76 7 0 12 7 5 2 106,125 1 94 77 7 0 12 7 0 2 100,262 1 93 75 7 0 12 7 0 2 97,801 1 93 78 7 0 12 7 0 2 93,050 1 93 67 7 1 4 7 0 3 103,091 1 90 66 7 1 4 7 0 3 138,931 1 92 66 7 1 4 6 0 3 121,312 1 92 66 7 1 4 6 0 3 119,392 1 90 66 5 1 4 6 0 4 120,203 1 88 71 5 1 4 6 0 4 111,496 CDs, Cassettes, Recorded Books) Members Magazines Subscriptions Newspapers Circulation of Books Electronic Downloads - Books Water Utility: Supply - Wells Storage Tanks Total Storage Capacity (Gallons) Water Mains (miles) Average Day (Gallons Pumped) R 22,345 41,221 161 12 412,969 30,811 21 7 5,250,000 225 4,521,047 22,366 41,348 174 10 449,746 24,801 22 6 3,750,000 225 4,521,047 21,008 37,531 191 10 463,113 17,219 22 6 3,750,000 223 4,197,984 16,929 34,308 187 11 444,333 11,770 22 6 3,750,000 222 4,245,153 15,265 32,717 217 11 407,611 2,635 22 3,750,000 217.5 miles 4,405,923 6 14,409 33,466 178 19 400,130 0 22 3,750,000 215.7 miles 4,656,334 6 15,572 36,534 201 19 375,632 0 22 3,750,000 6 215.7 miles 4,474,063 15,356 39,354 193 19 428,633 0 22 3,750,000 6 215.7 miles 4,429,115 11,917 37,587 287 29 408,827 0 22 6 3,750,000 196 miles 4,974,526 11,507 37,036 359 15 400,336 0 22 6 3,750,000 176 miles 4,721,174 7,171 39,202 359 12 398,666 0 22 6 3,750,000 176 miles 5,218,000 AF Peak Day (Gallons) 7,466,000 7,048,000 6,305,000 7,169,000 8,620,000 8,620,000 6,756,000 8,058,000 9,278,000 8,672,000 8,358,000 Total Water Production (Gallons Pumped) 1,833,877,000 1,650,329,000 1,532,264,000 1,553,727,000 1,608,161,895 1,699,562,000 1,633,033,000 1,616,627,000 1,815,702,000 1,869,585,000 1,904,666,300 Total Water Consumption (Gallons Billable) 1,648,819,000 1,441,559,000 1,374,855,000 1,345,432,000 1,455,934,265 1,539,590,000 1,466,943,000 1,531,526,000 1,554,000,000 1,640,082,000 1,641,119,000 Avearge Day (Gallons Billable) 4,517,312 3,949,476 3,766,726 3,686,115 3,988,861 4,218,055 4,019,022 4,195,962 4,257,534 4,493,375 4,496,216 Number of Metered Customers 12,376 12,365 12,341 12,373 12,385 12,330 13,863 13,375 13,229 11,962 11,764 Number of New Connections 11 24 0 0 55 0 488 146 284 198 139 Wastewater Utility: Pumping Stations 45 41 40 40 40 42 42 42 42 42 38 Sanitary Sewer Mains (Miles) 191.00 miles 191.00 miles 187.59 miles 186.87 miles 186.87 miles 185 miles 185 miles 185 miles 185 miles 185 miles 185 miles Average Day (Gallons Pumped) 4, 706,133 4,897,731 3,415,901 4,312,742 4,379,033 4,230,819 5,385,060 4,220,493 4,277,219 4,755,479 4,715,498 Peak Day (Gallons Pumped) Not Measured Not Measured Not Measured Not Measured Not Measured Not Measured Not Measured Not Measured Not Measured Not Measured Not Measured Wastewater Discharge (Gallons Pumped) 1,717,738,575 1,787,672,000 1,246,804,000 1,574,151,000 1,602,726,000 1,544,249,000 1,965,547,000 1,540,480,000 1,561,185,000 1,735,750,000 1,721,156,750 Wastewater Discharge (Gallons Billable) 1,258,961,000 1,264,140,000 17,861,000,000 1,242,238,000 1,316,656,000 1,303,587,000 1,328,195,000 1,410,347,000 1,458,043,000 1,467,498,000 1,460,882,000 Average Day (Gallons Billable) 3,449,208 3,463,397 3,415,901 3,403,392 3,607,277 3,571,471 3,638,890 3,863,964 3,994,638 4,020,542 4,002,416 Number of New Connections 0 22 0 5 55 0 488 146 Not Available Not Available Not Available Water Treatment Plant: Capacity 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 4.6 MGD 4.6 MGD Sales to Customers: Water Fees $5,457,061 $4,889,046 $4,459,808 $4,551,840 $4,707,918 $4,945,385 $4,274,966 $4,070,523 $4,203,972 $4,250,634 $4,289,413 Wastewater Fees $3,745,497 $3,735,855 $3,562,400 $3,564,615 $3,722,985 $3,694,020 $3,015,856 $2,351,885 $2,589,539 $2,619,013 $2,605,428 Wastewater Treatment Fees Inflow & Infiltration Surcharge Sources: Various City departments $2,936,831 $1,878,057 $2,952,857 $1,831,784 $2,930,333 $1,316,209 $2,926,616 $1,314,033 168 $3,050,127 $1,290,968 T $3,058,656 $1,171,376 $3,100,547 $0 $3,733,644 $0 $4,109,166 $0 $3,854,100 $0 $3,865,683 $0

2016 Comprehensive Annual Financial Report for the City of Dover, Delaware Financial Section – Statistical Section Table 23 City of Dover, Delaware Summary of Insurance As of June 30, 2016 PROTECTION TYPE OF COVERAGE LIMIT IN DOLLARS Property Blanket Building & Contents (Special Form, RC, Agreed Amount) $159,301,144 $10,000 Deductible Personal Property of Others $250,000 D Earthquake Flood Zones X or C Flood Zones (Zones unidentifiable) Zones located A, B Shaded X, V & D are excluded Blanket Business Earnings & Expense $2,000,000 $2,000,000 $200,000 $50,000 Deductible $50,000 Deductible $100,000 Deductible R Business Income from Dependent Properties Accounts Receivable Civil Authority - 30 days Claims Data Expense Covered Leasehold Interest Debris Removal (Additional Amount) Deferred Payments $250,000 $250,000 $25,000 $100,000 $250,000 $25,000 AF EDP Data & Media $50,000 Employee Tools ($2,500 item) $25,000 Expediting Expenses $250,000 Exhibitions (Property Damage) $50,000 Extra Expense $25,000 Fine Arts $250,000 Fire Department Services Charge Included Fire Protective Equipment Discharge Included Fungus, Wet Rot, Bacteria $25,000 Green Building Alternatives 1% / Max. $100,000 each building Green Building 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. Non-Owned Detached Trailers Ord & Law Coverage A Ord & Law Coverage B Ord & Law Coverage D Outdoor Property Outside Signs –Described – Premium Personal Affects Personal Property at Undescribed Premises Personal Property in Transit out of Coverage Territory $1,000,000 $25,000 $250,000 $250,000 T Included up to Extra Expense Limit $250,000 $100,000 $250,000 $50,000 $25,000 169

2016 Comprehensive Annual Financial Report for the City of Dover, Delaware Financial Section – Statistical Section Table 23 - 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 $25,000 Stamps, Tickets and Letters of Credit $5,000 Stored Water $25,000 D Theft or Damage to Rented Property Undamaged Parts of Stock in Process Valuable Papers on Premises Valuable Papers off Premises Appurtenant Buildings and Structures Overseas Business Travel Personal Property Utility Service Direct Damage Confiscated Property Included $50,000 $100,000 $100,000 $100,000 $25,000 $50,000 $100,000 R Street Lights – Each Item Street Lights – Per Occur Street Signs – Each Item Street Signs – Per Occur Traffic Signs and Lights –Each Traffic Signs and Lights - Per Occur Stadium Lights – Each Item Stadium Lights – Per Occur $2,500 $50,000 $2,500 $50,000 $2,500 $50,000 $2,500 $50,000 AF Spoilage Coverage Extension $10,000 Sewer or Drain Backup $250,000 Boiler & Machinery Coverage Limit Property Limit Deductible $10,000 Expediting Expenses $250,000 Hazardous Substance $250,000 Spoilage $250,000 Ammonia Contamination $250,000 Inland Marine Contractors Equipment – Replacement Cost - 90% Co-Insurance Employee Tools $94,725 Not to exceed $18,000 per item Unlisted Items/equipment Leased or Rented Items New Acquired contractors equipment Rental Cost (per Item) Loss to any one Replacement Item Listed Items Basic Deductible Employee Tool Deductible Flood Deductible Earthquake Deductible Windstorm Deductible $100,000 Not to exceed $5,000 per item $100,000 Not to exceed $100,000 per item $250,000 $5,000 $100,000 $175,170 $1,000 $250 $50,000 $50,000 $10,000 170 T

2016 Comprehensive Annual Financial Report for the City of Dover, Delaware Financial Section – Statistical Section Table 23 - 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 $35,000 $500 Deductible Robbery or Safe Burglary of Other Property $25,000 $500 Deductible Outside the Premises $30,000 $500 Deductible D Computer Fraud Money Orders & Counterfeit Currency $100,000 $100,000 Faithful Performance of Duty Coverage Endorsement – Governmental Employees Liability Coverage: $1,000 Deductible $1,000 Deductible R Commercial General Liability Each Occurrence Limit General Aggregate Limit Products Completed Operations Aggregate Limit Personal & Advertising Injury Each Person Damages to Premises Rented to You Limit (Any One Premises) $1,000,000 $3,000,000 $3,000,000 $1,000,000 $100,000 AF Medical Expenses $0 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 $1,000 Law Enforcement Liability - Occurrence Aggregate Limit Each Wrongful Act Limit Each Wrongful Act Deductible Statutory Cap Limits of Insurance Endorsement Delaware Statutory Cap Limit $3,000,000 $1,000,000 $15,000 $300,000 171 T

2016 Comprehensive Annual Financial Report for the City of Dover, Delaware Financial Section – Statistical Section Table 23 - 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 $2,000,000 D Each Wrongful Employment Practice Offense Limit Deductible Business Auto Policy Coverage: Automobile $1,000,000 $25,000 R Liability Personal Injury Protection Uninsured/Underinsured Motorist (Physical Damage Applies to Police & Specified Electric & Sanitation Trucks) Non-owned Liability Hired Auto Liability Employees as Additional Insured $1,000,000 $300,000 $40,000 $500 Comp Deduct/$1,000 Collision Deduct $1,000,000 $1,000,000 AF Hired Auto Physical Damage $90,000 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# 630OB165227) 172 T

2016 Comprehensive Annual Financial Report for the City of Dover, Delaware Financial Section – Statistical Section Table 23 - Continued PROTECTION TYPE OF COVERAGE LIMIT IN DOLLARS Umbrella Excess Liability Coverage: Umbrella General Aggregate Limit $6,000,000 Each Wrongful Act Limit $6,000,000 Each Wrongful Employment Practice Offense Limit $6,000,000 Products & Completed Work Aggregate Limit $6,000,000 D Personal and Advertising Injury Any One Person or Organization Limit Each Occurrence Limit Retained Limit Any One Occurrence or Event Umbrella Underlying Policies: General Liability $6,000,000 $6,000,000 $10,000 $1,000,000 R Employment Benefits Auto Liability Law Enforcement Liability Public Entity Management Employment Practices Liability Employers Liability (Safety Nat’l) Cyber Liability Coverage: $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 AF Cyber Liability – Claims Made Retroactive Date: 12/01/2012 Aggregate Limit $1,000,000 Third-Party Liability Network & Information Security Each Wrongful Act Limit $1,000,000 Deductible $10,000 First-Party Liability Security Breach Notification & Remediation Expenses Sublimit $500,000 Deductible $10,000 Crisis Management Service Expenses $500,000 Deductible Pollution Liability Coverage: Pollution Liability Each Pollution Event Limit Aggregate Policy Limit Crisis Management Expense Aggregate Limit Green Remediation Aggregate Limit Green Standards Aggregate Limit Deductibles $10,000 $5,000,000 $10,000,000 $50,000 $50,000 $50,000 T $25,000 Each Pollution Event 173

2016 Comprehensive Annual Financial Report for the City of Dover, Delaware Financial Section – Statistical Section Table 23 - 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: D Employers Liability Limit: Specific Limit: Aggregate Excess Limit: $600,000 Retention (Police) $500,000 Retention (All Other) Worker's Compensation-TPA Services (Charges based on claim count, this number could fluctuate) $1,000,000 Statutory $2,000,000 R 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, Water/Wastewater Manager, PW Operations Manager, Electric Director, Engineering and System Operations, Line Crew Foreman, City Manager, Assistant City Manager, Planning Director, Principal Planner, Fire Marshall, 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. AF Bond-Self Insured Worker’s Compensation - State of Delaware Limit: $750,000 Bond – Public Officials Bond - Donna Mitchell – Treasurer Limit: $100,000 Bond- Public Officials Bond - Traci McDowell – City Clerk/Assistant Treasurer Limit: $100,000 Power Plants – Property & Boiler and Machinery (2 policies 50/50) Locations: McKee Run Generating Plant VanSant Station Policy #1 T XL Insurance Company – $50,000,000 per Occurrence (50% Carrier Capacity Limit of $100,000,000) Coverages: 50% policy limit: Extra Expense: Errors & Omissions Expediting Cost: $50,000,000 Per Occurrence Agreed Amount, Special $2,000,000 $2,000,000 $1,000,000 174

2016 Comprehensive Annual Financial Report for the City of Dover, Delaware Financial Section – Statistical Section Table 23 - Continued PROTECTION TYPE OF COVERAGE LIMIT IN DOLLARS Property in the Course of Construction: $5,000,000 Earthquake: $20,000,000 Flood: $10,000,000 Debris Removal $2,500,000 Property in Transit $2,500,000 Demolition & Increase Cost of Construction $10,000,000 Deductibles: $750,000 per Occurrence, except; $100,000 per Occurrence as respects Transit, D Policy #2 In respect of Time Element loss (Extra Expense): 45 days per Occurrence, except; 72 hours per Occurrence in respect of Service Interruption Ace American Insurance Company – $50,000,000 per Occurrence (50% Carrier Capacity Limit of $100,000,000) Coverages: R 50% policy limit: Extra Expense: Errors & Omissions Expediting Cost: Property in the Course of Construction: Earthquake: $50,000,000 Per Occurrence Agreed Amount, Special $2,000,000 $2,000,000 $1,000,000 $5,000,000 $20,000,000 AF Flood: $10,000,000 Debris Removal $2,500,000 Property in Transit $2,500,000 Demolition & Increase Cost of Construction $10,000,000 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 175 T