CCW PACKET

COUNCIL COMMITTEE OF THE WHOLE AGENDA JANUARY 10, 2017 - 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. PARKS, RECREATION, AND COMMUNITY ENHANCEMENT COMMITTEE AGENDA ADDITIONS/DELETIONS 1. PROPOSED ORDINANCE #2017-01 AMENDING CHAPTER 70 - OFFENSES AND MISCELLANEOUS PROVISIONS AND APPENDIX F - FEES AND FINES (DISORDERLY PREMISES) (SPONSORS: SLAVIN AND SUDLER) 2. ADJOURNMENT OF PARKS, RECREATION, AND COMMUNITY ENHANCEMENT COMMITTEE MEETING UTILITY COMMITTEE AGENDA ADDITIONS/DELETIONS 1. DEDICATION OF RIGHTS-OF-WAY AND PUBLIC INFRASTRUCTURE - EMERALD POINTE (STAFF RECOMMENDS ACCEPTANCE OF DEDICATION OF RIGHTS-OF-WAY AND PUBLIC INFRASTRUCTURE OF THE EMERALD POINTE SUBDIVISION. DEDICATION IS TO INCLUDE ALL OF THE REFERENCED PUBLIC IMPROVEMENTS.) 2. ADJOURNMENT OF UTILITY COMMITTEE MEETING LEGISLATIVE, FINANCE, AND ADMINISTRATION COMMITTEE AGENDA ADDITIONS/DELETIONS 1. PROPERTY TAX CREDIT REQUEST - ROUTE 8 (NEW DEVELOPMENT) (STAFF RECOMMENDS AUTHORIZING THE CITY MANAGER TO EXECUTE A TAX CREDIT AGREEMENT FOR THE PURPOSE OF RESERVING AREA FOR A FUTURE SERVICE ROAD ACROSS THE PROPERTIES LOCATED AT 1116-1128 FORREST AVENUE)

COUNCIL COMMITTEE OF THE WHOLE AGENDA - JANUARY 10, 2017 Page 2 LEGISLATIVE, FINANCE, AND ADMINISTRATION COMMITTEE (CONTINUED) 2. PROJECT CARRY-FORWARD BUDGET BALANCES/PROPOSED ORDINANCE #2017-04 - BUDGET AMENDMENTS (STAFF RECOMMENDS APPROVAL OF THE PROPOSED BUDGET AMENDMENTS FOR FISCAL YEAR 2017 AND ADOPTION OF PROPOSED ORDINANCE #2017-04) 3. CONSIDERATION OF COST OF LIVING ALLOWANCE (COLA) FOR GENERAL PENSION PLAN RETIREES (STAFF RECOMMENDS AUTHORIZATION TO EXPEND APPROXIMATELY $1,000 TO ANALYZE THE FINANCIAL IMPACT FOR THREE (3) DIFFERENT COLA AMOUNTS: 1%, 1.5% AND 2.0%. THE ANALYSIS WILL BE COMPLETED BY NYHART. THESE EXPENSES WILL BE CHARGED AGAINST THE PENSION FUND ASSETS. CITY COUNCIL WOULD HAVE TO AUTHORIZE ANY COLA BEFORE ONE COULD BE IMPLEMENTED.) 4. PROPOSED TIME CHANGE FOR OPEN FORUM 5. PROPOSED ORDINANCES A. #2017-02 AMENDING CHAPTER 2 - ADMINISTRATION, ARTICLE V - FINANCE, SECTION 2-422 - DISPOSAL OF EXCESS PROPERTY (SPONSORS: NEIL, KOENIG, AND MCDOWELL) B. #2017-03 AMENDING CHAPTER 2 - ADMINISTRATION, ARTICLE IV - OFFICERS AND EMPLOYEES, DIVISION 7 - GENERAL EMPLOYEE PENSION PLAN AND DIVISION 8 - DEFERRED COMPENSATION PLAN; AND ARTICLE VI - OTHER POST-EMPLOYMENT BENEFITS FUND AND CREATING CHAPTER 80 - PERSONNEL (SPONSORS: COLE, HOSFELT, AND HUTCHISON) 6. ADJOURNMENT OF LEGISLATIVE, FINANCE, AND ADMINISTRATION COMMITTEE MEETING ADJOURNMENT OF THE COUNCIL COMMITTEE OF THE WHOLE MEETING /TM S:\AGENDAS-MINUTES-PACKETS-PRESENTATIONS-ATT&EXH\COMMITTEE-AGENDAS\2017\01-10-2017 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 PROPOSED ORDINANCE #2017-01 1 BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE CITY OF DOVER, IN COUNCIL 2 MET: 3 That Chapter 70 - Offenses and Miscellaneous Provisions of the Dover Code be amended by inserting a new 4 Section 70-8. - Disorderly Premises, as follows: 5 Sec. 70-8. - Disorderly premises. 6 (a) Disturbing activity. It shall be unlawful for any owner, owner's agent, manager, caretaker or person 7 occupying a premises to allow, suffer or permit in any residence or upon any premises occupied by 8 himself or herself any conduct which causes public inconvenience, annoyance, alarm to a reasonable 9 person, or disrupts the quiet and good order of adjoining and surrounding properties including, but 10 not limited to, engaging in fighting or in violent, tumultuous, or threatening behavior, making 11 unreasonable noise or an offensively coarse utterance, gesture or display or addressing abusive 12 language to any person present, obstructing vehicular traffic or pedestrian traffic, or creating a 13 hazardous or physically offensive condition which serves no legitimate purpose. Any person who 14 fails to obey the order of a Police Officer to dispel and disperse or otherwise discontinue the 15 disturbing activity may be cited for an additional violation of this Section. 16 (b) Tenant-occupied premises. In the event that the owner, owner's agent, manager or caretaker of a 17 house, dwelling, or premises where the violation of Subsection (a) hereof has occurred does not 18 occupy or reside at the property, such individual shall be presumed to have allowed, suffered or 19 permitted such conduct if after service of notice that such conduct has occurred, a further violation 20 of Subsection (a) occurs within one hundred eighty (180) days of the service of said notice. The 21 owner, owner's agent, manager or caretaker of a house, dwelling, or premises shall then be in 22 violation of this section. 23 (c) Service of notice. Notice is properly served upon person if a copy of such notice is personally; or 24 to the person's registered office; or by leaving such notice at the person's usual place of abode with 25 a person of suitable age and discretion who resides therein; or by certified mail addressed to the 26 person's last known address; or the mailing address of the owner of the subject premises as recorded 27 on the Kent County Assessment Records or the City of Dover Rental Permit or Business License 28 records. After service of notice, such owner, owner's agent, or manager or caretaker shall make a 29 good faith effort to develop a plan of action with the Dover Police Department to prevent further 30 violation of Subsection (a). 31 (d) Fines. Any person convicted of a violation of this Section shall be fined as provided for in 32 Appendix F - Fees and Fines. In any prosecution for an offense under this Section, it shall be an 33 affirmative defense, which must be proved by the preponderance of the evidence, that the occupant 34 has been evicted and is no longer on the premises, or if there is pending at the time of trial an 35 eviction action against the occupant of the premises which action is being pursued in good faith. 36 Otherwise the fines imposed under this Subsection shall not be suspended. 37 (e) Enforcement. This Section shall be enforced by the Police Department. 38 (f) Provisional order. Upon the issuance of three violations of Subsection (a) to a business within a 39 twelve-month period, the Police Department will notify the Department of Planning and Inspections.

Proposed Ordinance #2017-01 - Chapter 70 - Offenses and Miscellaneous Provisions Page 2 40 The Department of Planning and Inspections will issue a provisional order on the business license 41 in accordance with the provisions of Chapter 26 - Businesses, Article II. - Licenses, Section 26-59. - 42 Provisional Order Generally of the Dover Code. 43 BE IT FURTHER ORDAINED: 44 That Appendix F - Fees and Fines of the Dover Code be amended by inserting the bold, blue text, as follows: 45 Chapter 70. Offenses and Miscellaneous Provisions Fees and Fines 46 Sec. 70-1. Combative fighting Not to exceed $1,000.00. Separate fines may be issued to the promoter of such an event, 47 Subsec. (d)(1) Violations; penalties, fines participants in such an event, and the owner of the premises of such an event 48 Sec. 70-2. Weapons generally Not less than $500.00, nor more than 49 (e)(1) Penalties; fines $1,000.00 50 Sec. 70-7. Registered sexual offenders $500.00 for any offense; each day shall 51 Subsec. (f) Penalties constitute a separate offense Not to exceed $1,000.00 for any offense but not less than $100.00 for the first 52 Sec. 70-8. Disorderly premises offense, not less than $300.00 for the second offense, and not less than $500.00 for each subsequent like offense. 53 (Ord. No. 2015-15, 10-26-2015 ) 54 ADOPTED: * 55 S:\ORDINANCES\2017\DRAFT\ORDINANCE #2017-01 CHP 70 - OFFENSES AND MISCELLANEOUS PROVISIONS - DISORDERLY PREMISES\Ordinance #2017-01 Ch 70 - Offenses and Miscellaneous 56 Provisions (Disorderly Premises).wpd 57 SYNOPSIS 58 The proposed amendments create a new Section 70-8, Disorderly Premises, under Chapter 59 70 - Offenses and Miscellaneous Provisions. 60 (SPONSORS: SLAVIN AND SUDLER) 61 Actions History (Most recent first) 62 01/10/2017 - Scheduled for Introduction - Council Committee of the Whole/Parks, Recreation, and Community Enhancement 63 Committee

ACTION FORM PROCEEDING: Utility Committee AGENDA ITEM: DEPARTMENT OF ORIGIN: Public Works DATE SUBMITTED: 12-16-16 PREPARED BY: Sharon J. Duca, P.E., Public Works Director I City Engineer SUBJECT: Dedication of Rights-of-Way and Public Infrastructure- Emerald Pointe REFERENCE: N/A RELATED PROJECT: N/A APPROVALS: City Manager EXHIBITS: Attachment A- List of Public Improvements to be accepted by the City of Dover Attachment B- Map EXPENDITURE REQUIRED: ~ AMOUNT BUDGETED: ~ FUNDING SOURCE {Dept./Page in CIP & Budget): ~ TIMETABLE: All infrastructure improvements will become the responsibility of the City of Dover upon action by City Council. RECOMMENDED ACTION: Acceptance of dedication of rights-of-way and public infrastructure of the Emerald Pointe Subdivision. Dedication is to include all of the referenced public improvements. BACKGROUND AND ANALYSIS The City of Dover Department of Public Works requests that all public infrastructure improvements related to the Emerald Pointe Subdivision be dedicated to the City of Dover for permanent ownership and maintenance. Attachment A outlines all of the public improvements associated with the subdivision. The total construction value of the public improvements is $1,458,660.13. Attachment B shows the general location and configuration of the subject rights-of-way. After construction was completed, City staff inspected the public improvements and developed a list of repairs to be made to meet the City of Dover Standards and Specifications for Public Works Construction. As of this date, all work required by the Public Works Director has been completed. Staff has been monitoring an irregularity with a small portion of the sanitary sewer infrastructure for approximately four (4) year and the performance of this portion is acceptable to the City Manager; therefore, no repairs to the system are recommended as part of this dedication. Since staff has been monitoring the performance of the infrastructure related to this development for longer than the normal maintenance period (approximately four (4) years versus one {1) year), a one {1) year Maintenance Agreement will not be required. A Release of Liabilities will be submitted as part of the dedication process. Required as- built drawings of the infrastructure as well as videos of the sanitary sewer mains have been provided to staff. Note: City Council voted to abandon the stub portion of Topaz Circle (south of Aquamarine Court) in 2016. The removal ofthe curbing and paving in this area will be completed in 2017.

DEDICATION OF RIGHTS-OF-WAY AND PUBLIC INFRASTURCTURE EMERALD POINTE ATTACHMENT A The following is a list of all public improvements which are to be accepted by the City of Dover: Sewer Utility Infrastructure (Construction Value= $669,519): 8" SDR-35 PVC Sanitary Sewer Main 6,411 l.f. 6" PVC Sanitary Sewer Laterals 3,210 l.f. (107 laterals) 4 1 Diameter Sanitary Sewer Manholes 27 ea. (259 v.f.) Smith & Loveless 4B2C Pump Station 1 ea. 4" PVC Sanitary Sewer Force Main 8091.f. Water Utility Infrastructure (Construction Value= $183,008): 8" Ductile Iron (Class 52 Cement Lined) Water Main 6,3651.f. 6" Ductile Iron (Class 52 Cement Lined) Water Main 224 l.f. 1" Polyethylene Water Service Lines 3,330 I. f. (107 services) 8" Gate Valve 2 ea. 6" Hydrant Valve 8 ea. Fire Hydrants 8ea. Storm Water Infrastructure (Construction Value= $387,216.13): Catch Basins (Street) 43 ea. Catch Basins (Yard Inlet) 12 ea. 4 1 Diameter Storm Sewer Manholes 4ea. 29"x45" HDPE Pipe 1511.f. 42" HDPE Pipe 137 l.f. 36" HDPE Pipe 766 l.f. 30" HDPE Pipe 635 l.f. 24" HDPE Pipe 973 l.f. 21" HDPE Pipe 122 l.f. 18" HDPE Pipe 465 l.f. 15" HDPE Pipe 537 l.f. 29"x45" Type Ill Reinforced Concrete Pipe 30 l.f. 36" Type Ill Reinforced Concrete Pipe 30 l.f. 30" Type Ill Reinforced Concrete Pipe 614 l.f. 24" Type Ill Reinforced Concrete Pipe 3911.f. 21" Type Ill Reinforced Concrete Pipe 240 l.f. 18" Type Ill Reinforced Concrete Pipe 86 l.f. 15" Type Ill Reinforced Concrete Pipe 2,4651.f. Flared End Sections (Concrete) 5 ea. Street Infrastructure (0.9265 miles) (Construction Value= $218,917): Topaz Circle Station 0+00 to Station 37+70 3,770 l.f. Gemstone Boulevard Station 0+00 to Station 4+ 70 470 l.f. Mineral Court Station 0+00 to Station 2+41 2411.f. Tanzanite Court Station 0+00 to Station 2+13 2131.f. Aquamarine Court Station 0+00 to Station 1+98 198 l.f.

Attachment B E1nerald Pointe Right of Ways to be Dedicated to the City of Dover 0 125 250 500 Feet Date Printed: December 16 , 2016 N Legend A File: m:\gis_data\projects\tech_mxds Name ~ason_lyon_maps\caf_maps \caf_emerald_pointe - Area to be Dedicated Department: Public Works GIS City of Dover, Delaware CJ Dover Parcels

ACTION FORM PROCEEDING: Legislative, Finance, and Administration Committee DEPARTMENT OF ORIGIN: City Manager's Office DATE SUBMITTED: 12/29/2016 PREPARED BY: Scott D. Koenig, P.E., ICMA-CM, City Manager SUBJECT: Property Tax Credit Request- Route 8 (New Development) REFERENCE: N/A RELATED PROJECT: Route 8 Study APPROVALS: Scott D. Koenig, City Manager EXHffiiTS: Attachment A- Map of Area EXPENDITURE REQUIRED: $N/A AMOUNT BUDGETED: $N/A FUNDING SOURCE (Dept./Page in CIP & Budget): $ N/A TIMETABLE: Upon City Council authorization. RECOMMENDED ACTION: Staff recommends authorizing the City Manager to execute a tax credit agreement for the purpose of reserving area for a future service road across the properties located at 1116-1128 Forrest Avenue. BACKGROUND AND ANALYSIS Staff has been working with the developer efland on the south side of Route 8 across from the Modern Maturity Center. The developer, Franchise Management Services, Inc. c/o Mr. Nick Nastazos, is proposing to build a new Dunkin Donuts facility as well as other commercial space on the property located at 1116-1128 Forrest Avenue. The Route 8 Study envisioned a service road across the rear of this parcel which would connect with the existing traffic light at the Modern Maturity Center and travel east toward the Gateway West Shopping Center. The developer is willing to work with the City of Dover to reserve this service road possibility through the development of the site; however, the developer has requested consideration of a tax credit for the land to be reserved for the service road. The concept would work as follows: Assume the land to be developed is approximately five (5) acres in total size. The area needed for the proposed service road equates to 1.5 acres of land. Instead of paying City of Dover property taxes on the entire five (5) acres, the developer would only pay property taxes on 3.5 acres of land. This tax credit is only for the land. The developer would pay full property taxes for all buildings and other improvements on the land. The proposed property tax agreement would be for a twenty (20) year term. If the service road is actually constructed across the property to public road standards, then the right-of-way for the service road as well as the improvements associated with the road would be dedicated to the City of Dover. A formal agreement will be drafted for signature by the developer and the City. This concept allows the City to preserve the service road concept across the development parcel without disrupting the development process. Staff requests authorization to execute a tax credit agreement using the described concept for this development.

Attachment A 1128 Forrest Avenue 1164 1165 1166 1157 Ct 1168 1170 101 1172 1171 1159 1163 25 11718180 1177 1173 1161 23 1121 Afton 1210 21 1035 1179 gton Dr s Ct 19 1182 m in Ada 1184 e Wash 17 rg Ge o Forrest Ave 4 1156 1040 5 1188 1148 12 1140 1116 1076 1124 1126 15 20 1100 1145 Area to be Bennington St 1153 28 25 1137 Developed 1200 36 Woodstoc k C t 1129 44 43 1154 1146 1221 1215 1209 1179 3 7 1128 11 6 7 11 N Farmview Dr 1030 1 116 1214 1208 1202 1170 1110 1155 1213 1207 1201 1171 1156 S Farmview Dr 11 6 2 11 1212 6 1206 1200 8 1180 1174 1 155 Digital Aerial Solutions, LLC 0 105 210 420 Feet ¯ Date Printed: January 5, 2017 File: m:\gis_data\projects\tech_mxds Legend \jason_lyon_maps\caf_maps \caf_1128_forrest_ave Area to be Developed Department: Public Works GIS City of Dover, Delaware Dover Parcels

ACTION FORM PROCEEDING: Council Committee of the Whole DEPARTMENT OF ORIGIN: Finance DATE SUBMITTED: 01/10/2017 PREPARED BY: Donna Mitchell, Controller/Treasurer SUBJECT: Project Carry-Forward Budget Balances & Proposed Budget Amendments REVIEWED BY: City Manager & Controller/Treasurer APPROVALS: Council Committee of the Whole EXHIBITS: Exhibit A – Capital Investment Plan Amendments EXPENDITURE REQUIRED: As per the attached Exhibit & Draft Ordinance AMOUNT BUDGETED: N/A TIMETABLE: Upon Council approval RECOMMENDED ACTION: Staff recommends approval of the proposed Budget Amendments for Fiscal Year 2017. The proposed budget amendment includes adjustments to the Beginning Budget Balances for all funds and Capital Project budgets (see Exhibit A). It also includes any adjustments related to Council Actions taken to date on changes in project budgets or operating items that were not included in the original budget. Financial Policy transfers of favorable carry forward balances are as follows –  The General Fund includes a transfer to the Capital Asset Reserve of $253,400 attributed to favorable revenues and after a reduction of $485,000 for the purchase/demolition of Water Street properties.  Personnel favorability in FY16 is included to be transferred to the OPEB Trust in the amounts of $101,800 for Water/Wastewater and $109,300 for Electric. The General Fund had approximately $330,000 of personnel favorability; however, these funds were needed to increase the Reserve for Uncollectible Accounts and the Customer Service & Library (Passport) staff increases as approved by City Council.  The transfer to the Contingency Reserve in the Water Utility was increased from $110,000 to $131,100 to bring it in line with the financial policy of a minimum balance of $250,000.  The Electric Rate Stabilization Reserve has been increased by $6 million due to favorable power supply cost. This favorability was allocated as $2 million each to the Rate Stabilization Reserve, the Future Capacity Reserve, and the Depreciation Reserve (all policy compliant). Transfers to the capital reserves are intended to assist with the financing of advanced metering infrastructure/technology, DAFB substation, and potential projects as required by the Integrated Resource Plan. Additional adjustments are as follows –  No projected revenue increases are being projected at this time as we are holding off until the analyses and completion of the Quarterly Revenue Report. There are a couple of revenue changes in the Capital Funds for sales of assets and insurance proceeds that help offset cost of vehicles.  Increases are incorporated for the Customer Service & Library Divisions per Council approvals. Corresponding changes to the Interfund Service Receipts/Charges are also reflected. pg. 1

Action Form 1/10/2017 - CCW Proposed Budget Amendments  Increases to Division budgets for vacation sell-back, retirement payout, and education assistance with a corresponding decrease to Other Employment Expenses across all applicable funds.  Power supply was reduced by $65,000 to cover higher than expected insurance premiums on the generation assets at the McKee Plant due to higher asset replacement cost. The power supply management fee was lowered in the most recent contract, so the funds were available to cover the increased premium.  Project balances are carried over from last fiscal year as reflected in the Capital Investment Plan Amendments Schedule (Exhibit A – page preceding Draft Ordinance) with the additional adjustments to the FY17 Budgets as follows: o The General Fund Transfer-In and the corresponding capital expenditure in the City Manager’s budget was increased by the $485,000 for the purchase/demolition of the Water Street properties (as also explained above). o Additional increases to the General Capital Investments are included for a glass door/wall in the Library to partition off and reduce the noise level in the small theater $15,000. o Due to a high level of emergency repairs needed for infrastructures failures in storm water, water, and wastewater utilities we have increased the Emergency Repair capital budgets by $48,000 General Fund CIP, $5,000 Water CIP, and $225,000 Wastewater CIP. o The Electric CIP budget is being increased by $170,000 to move overhead distribution lines to underground distribution lines on the North Street Project, along with an increase of $23,000 for unexpected capital improvements (HVAC & Door) at Weyandt Hall. o The Water, Wastewater & Electric Utilities CIP have all been increased $50,000 each for economic development applications as approved by Council. o Grant Funds have been adjusted to reflect new programs and/or adjustments to current grants. pg. 2

Exhibit A City of Dover Fiscal Year 2016/2017 Budget First Amendment Capital Investment Plan Amendments Fiscal Year 2016 Original Revised Prior Carry FY 2017 Revised CIP CIP Fiscal Year Forward Year FY 17 CIP Project # Title Budget Budget Expenses Balance Budget Budget Grounds 3/4 Ton Truck with Dump Body $ 33,000 $ 34,200 $ - $ 34,200 $ - $ 34,200 Grounds 1990 Chevy Chipper Box Dump Truck w/ Lift Gate 61,900 61,400 - 61,400 - 61,400 CM 1998 Ford Explorer 32,800 17,800 - 17,800 - 17,800 Streets 1 Ton Truck with Dump 45,000 46,000 - 46,000 - 46,000 ST1504 Old PW2 Site Improvements 330,000 497,400 390,700 106,700 - 106,700 ST1601 Street and Alley Program 1,000,000 933,100 471,400 461,700 - 461,700 ST1603 Silver Lake Dam Valve Replacement 60,000 84,600 3,700 80,900 13,000 93,900 ST1701 FY17 Street and Alley Program - (13,000) (13,000) ST1604 Salt Storage Barn 75,000 75,000 12,600 62,400 - 62,400 CT1669 Persimmon Park Place Drainage - - 13,700 10,900 - 10,900 Street Division $ 1,637,700 $ 1,749,500 $ 892,100 $ 882,000 $ - $ 882,000 Total General Capital Project Fund $ 1,637,700 $ 1,749,500 $ 892,100 $ 882,000 $ - $ 882,000 Total Increase in General Cap Proj Fund $ 882,000 CT1627 FY16 Paving Projects $ 247,400 $ 247,400 $ 139,800 $ 107,600 $ - $ 107,600 CT1681 Pedestrain Enhancement - Mallard Pond Pathway 50,000 100,000 - 50,000 50,000 100,000 CT0708 E Water Street Brick 65,000 85,000 1,000 64,000 20,000 84,000 ST0232 Pat Lynn Drive/D.H.S. Storm Drain Pipe 5,500 5,500 - 5,500 - 5,500 TE0601 TCSP Lincoln Park 79,100 79,100 - 79,100 - 79,100 Total Community Transportation Fund $ 447,000 $ 517,000 $ 140,800 $ 306,200 $ 70,000 $ 376,200 Total Increase in Comm Transportation Fund $ 306,200 1 Ton Truck with Dump $ 46,200 $ 46,100 $ - $ 46,100 $ - $ 46,100 WD0804 1.0 MG Storage Tank - Denney's Road 2,468,200 2,468,200 - 2,468,200 - 2,468,200 Water Division $ 2,514,400 $ 2,514,300 $ - $ 2,514,300 $ 70,000 $ 2,514,300 Total Increase in Water Division $ 2,514,300 WW1303 Westover Pump Station Upgrade $ 1,292,400 $ 1,345,900 $ 752,900 $ 593,000 $ - $ 593,000 WW1503 Hazzlettville Road Interceptor - 774,100 155,200 618,900 - 618,900 WW1507 Retreat Pump Station Replacement 360,500 447,700 200 447,500 - 447,500 WW1603 Rolling Acres Pump Station Replacement 52,000 52,000 27,900 24,100 372,000 396,100 WW1605 DE Avenue Sanitary Sewer Ext 25,000 25,000 - 25,000 8,000 33,000 II1700 Inflow/Infiltration Removal - - - - (8,000) (8,000) Wastewater Division $ 1,729,900 $ 2,644,700 $ 936,200 $ 1,708,500 $ 372,000 $ 2,080,500 Total Increase in Wastewater Division $ 1,708,500 Total Water/Wastewater I & E Fund $ 4,244,300 $ 5,159,000 $ 936,200 $ 4,222,800 $ 442,000 $ 4,594,800 Total Increase in Water/Wastewater I & E Fund $ 4,222,800 EG1407 Metering System Upgrades $ - $ 80,000 $ - $ 80,000 $ 10,000 $ 90,000 EG1416 VanSant Capacity Increase 492,200 492,200 221,300 270,900 (10,000) 260,900 EG1612 VanSant Exhaust Plenum Repair 469,000 469,000 422,700 46,300 - 46,300 EG1613 Unit 3 Stack Repairs 485,000 485,000 2,600 340,000 - 340,000 Electric Generation $ 1,446,200 $ 1,526,200 $ 646,600 $ 737,200 $ - $ 737,200 Total Increase in Electric Generation $ 737,200 EE1415 Metering Infrastructure $ - $ 150,000 $ - $ 150,000 $ - $ 150,000 Transmission & Distribution $ - $ 150,000 $ - $ 150,000 $ - $ 150,000 Total Increase in Transmission & Distribution $ 150,000 EE1500 69 KV Rebuild - Horsepond Road $ 63,000 $ 318,500 $ 67,900 $ 250,600 $ - $ 250,600 EE1605 69KV Cable Replacement - North Street 50,000 135,000 - 135,000 - 135,000 EE1607 Horsepond URD - Dist Feeder 67,000 112,000 49,500 62,500 - 62,500 EE1617 Oak Grove Trailer Park 78,500 78,500 1,100 77,400 - 77,400 EE1627 Dover East 130,000 130,000 4,500 125,500 - 125,500 Engineering Division $ 388,500 $ 774,000 $ 123,000 $ 651,000 $ - $ 651,000 Total Increase in Engineering $ 651,000 2016 Dodge Ram 1500 $ 23,000 $ 23,000 $ - $ 23,000 $ - $ 23,000 Metering Division $ 23,000 $ 23,000 $ - $ 23,000 $ - $ 23,000 Total Increase in Metering $ 23,000 Total Electric I & E Fund $ 1,857,700 $ 2,473,200 $ 769,600 $ 1,561,200 $ - $ 1,561,200 Total Increase in Electric I & E Fund $ 1,561,200 Total Carryforward balances from FY 2016 $ 6,972,200

CITY OF DOVER ORDINANCE #2017-04 2016-2017 BUDGET ORDINANCES - FIRST AMENDMENT 1 BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE CITY OF DOVER, IN COUNCIL MET: 2 The amount hereinafter named aggregating Forty Seven Million Seven Hundred Twenty Eight Thousand Nine 3 Hundred dollars ($47,728,900) or so much thereof as may be necessary are hereby appropriated from 4 current revenues and other funds for the use by several departments of the Municipal Government 5 for the fiscal year beginning July 1, 2016 and ending June 30, 2017: 6 GENERAL FUND 7 CASH RECEIPT SUMMARY FOR 2016-2017 8 2016/17 2016/17 9 BUDGET REVISED 10 BEGINNING BALANCE $ 4,493,900 $ 5,424,800 D 11 12 13 14 15 16 17 18 RECEIPTS FINES AND POLICE REVENUE INVESTMENT INCOME LIBRARY REVENUES KENT COUNTY BOOK REIMBURSEMENT BUSINESS LICENSES PERMITS AND OTHER FEES MISCELLANEOUS CHARGES 763,300 90,000 70,300 312,600 1,467,000 1,662,100 56,800 763,300 90,000 70,300 312,600 1,467,000 1,662,100 56,800 19 20 21 22 23 24 25 26 27 R POLICE EXTRA DUTY PROPERTY TAXES RECREATION REVENUE FRANCHISE FEE SANITATION FEES RENT REVENUE - GARRISON FARM COURT OF CHANCERY FEES RECEIPTS SUBTOTAL INTERFUND SERVICE RECEIPTS 525,000 12,895,100 150,000 680,000 2,538,300 94,500 1,100,000 22,405,000 525,000 12,895,100 150,000 680,000 2,538,300 94,500 1,100,000 22,405,000 AF 28 INTERFUND SERVICE RECEIPTS W/WW 1,653,800 1,673,400 29 INTERFUND SERVICE RECEIPTS ELECTRIC 3,564,900 3,625,900 30 INTERFUND SERVICE RECEIPTS SUBTOTAL 5,218,700 5,299,300 31 GRANTS: 32 POLICE RELATED/EXTRA DUTY 258,600 258,600 33 POLICE PENSION GRANT 500,000 500,000 34 GREEN ENERGY GRANT 98,500 98,500 35 MISC GRANT REVENUE 25,000 25,000 36 GRANTS SUBTOTAL 882,100 882,100 37 TRANSFERS FROM: 38 TRANSFER TAX 1,672,700 1,672,700 39 MUNICIPAL STREET AID 673,100 673,100 40 CIVIL TRAFFIC PENALTIES 496,900 496,900 41 WATER/WASTEWATER 875,000 875,000 42 ELECTRIC 10,000,000 10,000,000 43 44 45 TRANSFERS FROM SUBTOTAL TOTAL REVENUES TOTAL BEGINNING BALANCE & REVENUE T $ 13,717,700 42,223,500 46,717,400 $ 13,717,700 42,304,100 47,728,900 1

46 2016-2017 BUDGET ORDINANCES - FIRST AMENDMENT 47 GENERAL FUND - EXPENDITURES AND BUDGET BALANCE FOR 2016-2017 48 2016/17 2016/17 49 DEPARTMENT EXPENSES BUDGET REVISED 50 CITY CLERK $ 412,300 $ 415,900 51 COUNCIL 141,100 141,100 52 TAX ASSESSOR 244,000 247,200 53 FIRE 721,700 721,700 54 GROUNDS MAINTENANCE 1,201,300 1,210,000 55 LIBRARY 1,635,000 1,666,100 56 RECREATION 750,900 756,800 57 LIFE SAFETY 485,200 488,100 58 CODE ENFORCEMENT 421,100 423,800 59 PLANNING 546,800 552,400 60 INSPECTIONS 697,900 700,800 D 61 62 63 64 65 66 67 68 69 POLICE POLICE EXTRA DUTY STREETS SANITATION CITY MANAGER INFORMATION TECHNOLOGY FINANCE PUBLIC WORKS - ADMINISTRATION FACILITIES MANAGEMENT 16,091,600 783,600 1,163,500 2,032,800 792,400 716,300 1,011,100 680,000 607,100 16,236,900 804,500 1,165,800 2,036,000 796,100 719,700 1,017,200 682,100 610,100 70 71 72 73 74 75 76 77 78 RPUBLIC WORKS - ENGINEERING PROCUREMENT & INVENTORY FLEET MAINTENANCE CUSTOMER SERVICE HUMAN RESOURCES MAYOR DEPARTMENT SUBTOTALS OTHER EXPENSES DEBT SERVICE 207,000 585,100 776,300 1,143,800 392,500 74,000 34,314,400 685,300 207,000 585,100 777,400 1,263,900 400,900 74,000 34,700,600 685,300 AF 79 CONTRIBUTION TO DDP 150,000 150,000 80 MISCELLANEOUS GRANT RELATED EXP 25,000 25,000 81 INSURANCE 700,000 700,000 82 RETIREES HEALTH CARE 2,039,700 2,039,700 83 OTHER EMPLOYMENT EXPENSES 400,700 135,500 84 BANK & CREDIT CARD FEES 15,000 15,000 85 UNCOLLECTIBLES - TRASH AND OTHER 50,000 50,000 86 STREET LIGHTS 804,000 804,000 87 OTHER EXPENSE SUBTOTAL 4,869,700 4,604,500 88 TRANSFERS 89 TRANSFER TO CAPITAL FUND - PROJECTS 1,859,400 2,344,400 90 TRANSFER TO THE CAPITAL ASSET RESERVE - 253,400 91 APPROP. TO THE POLICE PENSION FUND 670,000 670,000 92 APPROP. POLICE PENSION - STATE GRANT 500,000 500,000 93 TRANSFER TO INVENTORY WRITE-OFFS 10,000 10,000 94 95 96 97 TRANSFERS SUBTOTAL TOTAL EXPENDITURES CURRENT YEAR BALANCE TOTALS T $ 3,039,400 42,223,500 4,493,900 46,717,400 98 The City Manager is hereby authorized, without further approval of the City Council, to make $ 99 interdepartmental transfers of up to five percent of the amount hereinafter appropriated to any 100 department with the exception of any transfers prohibited by City Procedure #F306. 101 ADOPTED: 3,777,800 43,082,900 4,646,000 47,728,900 2

102 2016-2017 BUDGET ORDINANCES - FIRST AMENDMENT 103 GOVERNMENTAL CAPITAL PROJECTS FUND 104 REVENUES AND BUDGET FOR 2016-2017 105 106 BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE CITY OF DOVER, IN COUNCIL MET: 107 The amount hereinafter named aggregating Four Million Ninety Three Thousand Three Hundred dollars 108 ($4,093,300) or so much thereof as may be necessary are hereby appropriated from current revenues and other 109 funds for the use by several departments of the Municipal Government for the fiscal year beginning July 1, 2016 110 and ending June 30, 2017: 111 REVENUES 112 2016/17 2016/17 113 BUDGET REVISED 114 BEGINNING BALANCE - PROJECTS $ 383,900 $ 1,472,100 115 REVENUES D 116 117 118 119 120 121 122 INCOME FROM SALE OF ASSETS GRANT RECEIPTS INTEREST EARNINGS MISCELLANEOUS REVENUE TRANSFER FROM GENERAL FUND TRANSFER FROM PARKLAND RESERVE SUBTOTAL PROJECT RECEIPTS 123 TOTAL FUNDING SOURCES - 105,000 5,000 - 1,859,400 80,000 2,049,400 2,049,400 70,100 105,000 5,000 16,700 2,344,400 80,000 2,621,200 2,621,200 124 TOTAL BEGINNING BALANCE AND REVENUES 125 126 127 128 129 R EXPENDITURES FIRE GROUNDS MAINTENANCE EXPENSE SUMMARY $ $ 2,433,300 2016/17 BUDGET 145,700 $ 58,200 $ 4,093,300 2016/17 REVISED 145,700 153,800 AF 130 LIFE SAFETY 29,500 29,500 131 LIBRARY - 15,000 132 POLICE 299,800 299,800 133 RECREATION 165,000 165,000 134 STREETS 1,026,000 1,842,600 135 CITY MANAGER - 502,800 136 SANITATION 261,500 261,500 137 FACILITIES MANAGEMENT 27,700 27,700 138 FLEET MAINTENANCE 31,000 31,000 139 DEPARTMENT SUBTOTAL 2,044,400 3,474,400 140 BUDGET BALANCE 388,900 618,900 141 TOTAL BUDGET BALANCE & EXPENDITURES $ 2,433,300 $ 4,093,300 142 The City Manager is hereby authorized, without further approval of the City Council, to make 143 interdepartmental transfers of up to five percent of the amount hereinafter appropriated to any 144 department with the exception of any transfers prohibited by City Procedure #F306. 145 ADOPTED: T 3

146 2016-2017 BUDGET ORDINANCES - FIRST AMENDMENT 147 GENERAL FUND CONTINGENCY 148 CASH RECEIPTS/REVENUES AND BUDGET FOR 2016-2017 149 BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE CITY OF DOVER, IN COUNCIL MET: 150 The amount hereinafter named aggregating Seven Hundred Forty Two Thousand Nine Hundred dollars ($742,900) 151 or so much thereof as may be necessary are hereby appropriated from current revenues and other 152 funds for the use by several departments of the Municipal Government for the fiscal year 153 beginning July 1, 2016 and ending June 30, 2017: 154 CASH RECEIPTS 155 2016/17 2016/17 156 BUDGET REVISED 157 BEGINNING BALANCE $ 731,000 $ 732,900 158 INTEREST EARNED 10,000 10,000 159 TOTALS $ 741,000 $ 742,900 D 160 161 162 163 CARRY FORWARD TO NEXT YEAR 164 TOTALS EXPENSE SUMMARY $ 2016/17 BUDGET 741,000 741,000 165 The City Manager is hereby authorized, without further approval of the City Council, to make $ 166 interdepartmental transfers of up to five percent of the amount hereinafter appropriated to any 2016/17 REVISED 742,900 742,900 R 167 department with the exception of any transfers prohibited by City Procedure #F306. 168 ADOPTED: AF T 4

169 2016-2017 BUDGET ORDINANCES - FIRST AMENDMENT 170 GENERAL CAPITAL ASSET RESERVE 171 CASH RECEIPTS/REVENUES AND BUDGET FOR 2016-2017 172 BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE CITY OF DOVER, IN COUNCIL MET: 173 The amount hereinafter named aggregating One Million Five Hundred Twenty Two Thousand Two Hundred 174 dollars ($1,522,200) or so much thereof as may be necessary are hereby appropriated from current 175 revenues and other funds for the use by several departments of the Municipal Government for the fiscal 176 year beginning July 1, 2016 and ending June 30, 2017: 177 CASH RECEIPTS 178 2016/17 2016/17 179 BUDGET REVISED 180 BEGINNING BALANCE $ 1,251,300 $ 1,253,800 181 RECEIPTS 182 INTEREST EARNINGS 15,000 15,000 D 183 184 185 TOTALS 186 187 188 TRANSFER FROM GENERAL FUND TOTAL RECEIPTS 189 CARRY FORWARD TO NEXT YEAR 190 TOTALS EXPENSE SUMMARY $ $ $ - 15,000 1,266,300 2016/17 BUDGET 1,266,300 $ 1,266,300 $ $ 253,400 268,400 1,522,200 2016/17 REVISED 1,522,200 1,522,200 R 191 The City Manager is hereby authorized, without further approval of the City Council, to make 192 interdepartmental transfers of up to five percent of the amount hereinafter appropriated to any 193 department with the exception of any transfers prohibited by City Procedure #F306. 194 ADOPTED: AF T 5

195 2016-2017 BUDGET ORDINANCES - FIRST AMENDMENT 196 PARKLAND/RECREATION RESERVE 197 CASH RECEIPTS/REVENUES AND BUDGET FOR 2016-2017 198 BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE CITY OF DOVER, IN COUNCIL MET: 199 The amount hereinafter named aggregating Three Hundred Twenty Nine Thousand Four Hundred dollars 200 ($329,400) or so much thereof as may be necessary are hereby appropriated from current revenues and 201 other funds for the use by several departments of the Municipal Government for the fiscal year 202 beginning July 1, 2016 and ending June 30, 2017: 203 OPERATING REVENUES 204 2016/17 2016/17 205 BUDGET REVISED 206 PRIOR YEAR BALANCE $ 324,900 $ 326,400 207 INTEREST INCOME 3,000 3,000 208 TOTALS $ 327,900 $ 329,400 D 209 210 211 212 TRANSFER TO GENERAL CAPITAL PROJECT FUND 213 CURRENT YEAR BALANCE 214 TOTALS OPERATING EXPENSES $ 2016/17 BUDGET 80,000 247,900 327,900 $ 2016/17 REVISED 80,000 249,400 329,400 R 215 The City Manager is hereby authorized, without further approval of the City Council, to make 216 interdepartmental transfers of up to five percent of the amount hereinafter appropriated to any 217 department with the exception of any transfers prohibited by City Procedure #F306. 218 ADOPTED: AF T 6

219 2016-2017 BUDGET ORDINANCES - FIRST AMENDMENT 220 WATER/WASTEWATER FUND 221 REVENUES AND BUDGET FOR 2016-2017 222 BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE CITY OF DOVER, IN COUNCIL MET: 223 The amount hereinafter named aggregating Seventeen Million Sixty Seven Thousand Seven Hundred 224 dollars ($17,067,700) or so much thereof as may be necessary are hereby appropriated from current 225 revenues and other funds for the use by several departments of the Municipal Government for the 226 fiscal year beginning July 1, 2016 and ending June 30, 2017: 227 2016/17 2016/17 228 BUDGET REVISED 229 BEGINNING BALANCE - WATER $ 566,500 $ 881,300 230 BEGINNING BALANCE - WASTEWATER 663,200 719,200 231 TOTAL BEGINNING BALANCES 1,229,700 1,600,500 232 BASE REVENUE D 233 234 235 236 237 238 239 240 241 WATER SERVICES WASTEWATER SERVICES WASTEWATER TREATMENT SERVICES GROUNDWATER INFLOW ADJUSTMENT WATER TANK SPACE LEASING SEWER IMPACT FEES WATER IMPACT FEES INTEREST - WATER INTEREST - WASTEWATER 5,800,000 3,800,000 3,000,000 1,938,000 366,200 228,000 252,000 10,000 10,000 5,800,000 3,800,000 3,000,000 1,938,000 366,200 228,000 252,000 10,000 10,000 242 243 R MISCELLANEOUS SERVICE FEE TOTAL REVENUES 244 TOTAL BEGINNING BALANCES AND REVENUES $ 63,000 15,467,200 16,696,900 $ 63,000 15,467,200 17,067,700 AF T 7

245 2016-2017 BUDGET ORDINANCES - FIRST AMENDMENT 246 WATER/WASTEWATER FUND - EXPENSES AND BUDGET BALANCE FOR 2016-2017 247 2016/17 2016/17 248 DIRECT EXPENSES BUDGET REVISED 249 ENGINEERING & INSPECTION $ 516,500 $ 521,500 250 WATER DEPARTMENT 655,400 677,200 251 WASTEWATER DEPARTMENT 962,400 983,400 252 WATER TREATMENT PLANT 1,727,400 1,735,800 253 DIRECT EXPENDITURE SUBTOTAL 3,861,700 3,917,900 254 OTHER EXPENSES 255 DEBT SERVICE - WATER 590,300 590,300 256 DEBT SERVICE - WASTEWATER 636,900 636,900 257 RETIREES HEALTH CARE 192,400 192,400 258 OTHER EMPLOYMENT EXPENSES 21,200 5,000 259 OPEB UNFUNDED LIABILITY - 101,800 D 260 261 262 263 264 265 266 267 KENT COUNTY TREATMENT CHARGE INTERFUND SERVICE FEES BANK & CREDIT CARD FEES BOND ISSUE COSTS OTHER EXPENSES SUBTOTAL TRANSFER TO: GENERAL FUND FROM WATER GENERAL FUND FROM WASTEWATER 4,130,000 1,653,800 25,000 40,000 7,289,600 500,000 375,000 4,130,000 1,673,400 25,000 40,000 7,394,800 500,000 375,000 268 269 270 271 272 273 275 276 R WATER IMP AND EXT WASTEWATER IMP AND EXT CONTINGENCY RESERVE WATER CONTINGENCY RESERVE WASTEWATER ELECTRIC IMP AND EXT TRANSFER TO SUBTOTAL 274 TOTAL EXPENSES BUDGET BALANCES BUDGET BALANCE WATER 1,000,000 1,000,000 110,000 60,000 231,200 3,276,200 14,427,500 1,103,100 980,000 980,000 131,100 60,000 231,200 3,257,300 14,570,000 1,331,500 AF 277 BUDGET BALANCE WASTEWATER 1,166,300 1,166,200 278 BUDGET BALANCE SUBTOTALS 2,269,400 2,497,700 279 TOTAL CURRENT YEAR BALANCES AND EXPENSES $ 16,696,900 $ 17,067,700 280 The City Manager is hereby authorized, without further approval of the City Council, to make 281 interdepartmental transfers of up to five percent of the amount hereinafter appropriated to any 282 department with the exception of any transfers prohibited by City Procedure #F306. 283 ADOPTED: T 8

284 2016-2017 BUDGET ORDINANCES - FIRST AMENDMENT 285 WATER/WASTEWATER IMPROVEMENT & EXTENSION FUND 286 CASH RECEIPTS/REVENUES AND BUDGET FOR 2016-2017 287 BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE CITY OF DOVER, IN COUNCIL MET: 288 The amount hereinafter named aggregating Twelve Million Four Hundred Twenty Thousand Three Hundred 289 dollars ($12,420,300) or so much thereof as may be necessary are hereby appropriated from current revenues 290 and other funds for the use by several departments of the Municipal Government for the fiscal year 291 begining July 1, 2016 and ending June 30, 2017: 292 CASH RECEIPTS 293 2016/17 2016/17 294 BUDGET REVISED 295 BEGINNING BALANCE - WATER $ 1,179,900 $ 3,584,500 296 BEGINNING BALANCE - WASTEWATER 952,600 3,129,800 297 TOTAL BEGINNING BALANCES 2,132,500 6,714,300 D 298 299 300 301 302 303 304 305 REVENUES STATE LOAN FUND - WATER STATE LOAN FUND - WASTEWATER TRANS FR OPERATING FUND - WATER TRANS FR OPERATING FUND - WASTEWATER TRANSFER FROM WATER IMPACT FEE TRANSFER FROM WASTEWATER IMPACT FEE INTEREST INCOME 2,400,000 884,000 1,000,000 1,000,000 190,800 211,200 20,000 2,400,000 884,000 1,000,000 1,000,000 190,800 211,200 20,000 306 308 309 310 311 312 313 R TOTAL REVENUES 307 TOTAL BEGINNING BALANCES & REVENUES EXPENSES W/WW ENGINEERING WATER WASTEWATER EXPENSE SUMMARY $ $ 5,706,000 7,838,500 2016/17 BUDGET 30,400 $ 1,338,800 2,021,200 $ 5,706,000 12,420,300 2016/17 REVISED 30,400 3,908,100 4,004,700 AF 314 WATER TREATMENT PLANT 1,200,000 1,200,000 315 TOTAL EXPENSES 4,590,400 9,143,200 316 BUDGET BALANCE - WATER 2,035,900 2,062,000 317 BUDGET BALANCE - WASTEWATER 1,021,400 1,215,100 318 CURRENT YEAR BALANCE SUBTOTALS 3,057,300 3,277,100 319 TOTAL BUDGET BALANCES & EXPENSES $ 7,647,700 $ 12,420,300 320 The City Manager is hereby authorized, without further approval of the City Council, to make 321 interdepartmental transfers of up to five percent of the amount hereinafter appropriated to any 322 department with the exception of any transfers prohibited by City Procedure #F306. 323 ADOPTED: T 9

324 2016-2017 BUDGET ORDINANCES - FIRST AMENDMENT 325 WATER/WASTEWATER CAPITAL ASSET RESERVE 326 CASH RECEIPTS/REVENUES AND BUDGET FOR 2016-2017 327 BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE CITY OF DOVER, IN COUNCIL MET: 328 The amount hereinafter named aggregating One Million Forty Five Thousand Eight hundred dollars ($1,045,800) 329 or so much thereof as may be necessary are hereby appropriated from current revenues and other funds 330 for the use by several departments of the Municipal Government for the fiscal year beginning July 1, 2016 331 and ending June 30, 2017: 332 CASH RECEIPTS 333 2016/17 2016/17 334 BUDGET REVISED 335 BEGINNING BALANCE - WATER $ 514,600 $ 519,600 336 BEGINNING BALANCE - WASTEWATER 513,400 518,400 337 TOTAL BEGINNING BALANCES 1,028,000 1,038,000 D 338 339 340 341 342 343 344 345 346 RECEIPTS INTEREST EARNINGS - WATER INTEREST EARNINGS - WASTEWATER TOTAL RECEIPTS TOTALS CURRENT YEAR BALANCE - WATER EXPENSE SUMMARY $ $ 3,900 3,900 7,800 1,035,800 2016/17 BUDGET 518,500 $ $ 3,900 3,900 7,800 1,045,800 2016/17 REVISED 523,500 347 348 R CURRENT YEAR BALANCE - WASTEWATER CURRENT YEAR BALANCE SUBTOTALS 349 TOTALS $ 517,300 1,035,800 1,035,800 350 The City Manager is hereby authorized, without further approval of the City Council, to make $ 351 interdepartmental transfers of up to five percent of the amount hereinafter appropriated to any 352 department with the exception of any transfers prohibited by City Procedure #F306. 353 ADOPTED: 522,300 1,045,800 1,045,800 AF T 10

354 2016-2017 BUDGET ORDINANCES - FIRST AMENDMENT 355 WATER/WASTEWATER IMPACT FEE RESERVE 356 CASH RECEIPTS/REVENUES AND BUDGET FOR 2016-2017 357 BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE CITY OF DOVER, IN COUNCIL MET: 358 The amount hereinafter named aggregating Three Million Five Hundred Twenty Five Thousand One Hundred 359 dollars ($3,525,100) or so much thereof as may be necessary are hereby appropriated fromcurrent revenues 360 and other funds for the use by several departments of the Municipal Government for the fiscal year beginning 361 July 1, 2016 and ending June 30, 2017: 362 CASH RECEIPTS 363 2016/17 2016/17 364 BUDGET REVISED 365 BEGINNING BALANCE - WATER $ 430,700 $ 434,200 366 BEGINNING BALANCE - WASTEWATER 1,590,900 3,075,500 367 TOTAL BEGINNING BALANCES 2,021,600 3,509,700 D 368 369 370 371 RECEIPTS INTEREST EARNINGS - WATER 372 TOTALS 373 374 375 INTEREST EARNINGS - WASTEWATER TOTAL RECEIPTS 376 TRANSFER TO I & E FUND FROM WATER IMPACT FEES EXPENSE SUMMARY $ $ 12,100 15,400 2,037,000 2016/17 BUDGET 3,300 190,800 $ $ 3,300 12,100 15,400 3,525,100 2016/17 REVISED 190,800 R 377 TRANSFER TO I & E FUND FROM WASTEWATER IMPACT FEES 378 CURRENT YEAR BALANCE - WATER 379 CURRENT YEAR BALANCE - WASTEWATER 380 CURRENT YEAR BALANCE SUBTOTALS 381 TOTALS $ 211,200 243,200 1,391,800 1,635,000 2,037,000 382 The City Manager is hereby authorized, without further approval of the City Council, to make 383 interdepartmental transfers of up to five percent of the amount hereinafter appropriated to any $ 211,200 246,700 2,876,400 3,123,100 3,525,100 AF 384 department with the exception of any transfers prohibited by City Procedure #F306. 385 ADOPTED: T 11

386 2016-2017 BUDGET ORDINANCES - FIRST AMENDMENT 387 WATER/WASTEWATER CONTINGENCY RESERVE 388 CASH RECEIPTS/REVENUES AND BUDGET FOR 2016-2017 389 BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE CITY OF DOVER, IN COUNCIL MET: 390 The amount hereinafter named aggregating Five Hundred Twenty Six Thousand Two Hundred dollars 391 ($526,200) or so much thereof as may be necessary are hereby appropriated from current revenues 392 and other funds for the use by several departments of the Municipal Government for the fiscal year 393 beginning July 1, 2016 and ending June 30, 2017: 394 CASH RECEIPTS 395 2016/17 2016/17 396 BUDGET REVISED 397 BEGINNING BALANCE - WATER $ 138,000 $ 117,900 398 BEGINNING BALANCE - WASTEWATER 191,600 214,700 399 TOTAL BEGINNING BALANCES 329,600 332,600 D 400 401 402 403 404 407 RECEIPTS INTEREST EARNINGS TRANSFER FROM OPERATING ACCOUNT TO WATER TRANSFER FROM OPERATING ACCOUNT TO WASTEWATER TOTAL RECEIPTS 405 TOTALS 406 BUDGET SUMMARY $ 2,500 110,000 60,000 172,500 502,100 2016/17 $ 2016/17 2,500 131,100 60,000 193,600 526,200 408 R 409 CURRENT YEAR BALANCE - WATER 410 CURRENT YEAR BALANCE - WASTEWATER 411 CURRENT YEAR BALANCE SUBTOTALS 412 TOTAL EXPENSES AND CURRENT YEAR BALANCES $ BUDGET 249,000 253,100 502,100 502,100 413 The City Manager is hereby authorized, without further approval of the City Council, to make $ 414 interdepartmental transfers of up to five percent of the amount hereinafter appropriated to any 415 department with the exception of any transfers prohibited by City Procedure #F306. REVISED 250,000 276,200 526,200 526,200 AF 416 ADOPTED: T 12

417 2016-2017 BUDGET ORDINANCES - FIRST AMENDMENT 418 ELECTRIC REVENUE FUND 419 REVENUES AND BUDGET FOR 2016-2017 420 BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE CITY OF DOVER, IN COUNCIL MET: 421 The amount hereinafter named aggregating Ninety Nine Million Three Hundred Twenty Five Thousand 422 dollars ($99,325,000) or so much thereof as may be necessary are hereby appropriated from 423 current revenues and other funds for the use by several departments of the Municipal Government 424 for the fiscal year beginning July 1, 2016 and ending June 30, 2017: 425 2016/17 2016/17 426 BUDGET REVISED 427 BEGINNING BALANCE $ 13,302,200 $ 19,896,400 428 BASE REVENUE 429 DIRECT SALES TO CUSTOMER 77,193,200 77,193,200 430 UTILITY TAX 1,287,900 1,287,900 D 431 432 433 434 435 MISCELLANEOUS REVENUE RENT REVENUE GREEN ENERGY INTEREST EARNINGS TOTAL REVENUES 436 TOTAL BEGINNING BALANCE & REVENUES 548,600 223,000 128,000 47,900 79,428,600 92,730,800 548,600 223,000 128,000 47,900 79,428,600 99,325,000 R AF T 13

437 2016-2017 BUDGET ORDINANCES - FIRST AMENDMENT 438 ELECTRIC REVENUE FUND EXPENSES AND BUDGET BALANCE FOR 2016-2017 439 2016/17 2016/17 440 EXPENSES BUDGET REVISED 441 POWER SUPPLY $ 16,557,600 $ 16,492,600 442 SOLAR ENERGY 2,313,900 2,313,900 443 SOLAR RENEWAL ENERGY CREDITS 363,400 363,400 444 POWER SUPPLY MANAGEMENT 996,000 996,000 445 REC'S (Renewable Energy Credits) 673,400 673,400 446 RGGI (Regional Greenhouse Gas Init.) 175,000 175,000 447 PJM CHARGES - ENERGY 12,357,900 12,357,900 448 PJM CHARGES - TRANSMISSION & FEES 7,603,800 7,603,800 449 CAPACITY CHARGES 10,160,600 10,160,600 450 SUB-TOTAL POWER SUPPLY 51,201,600 51,136,600 451 PLANT OPERATIONS 6,215,700 6,280,700 D 452 453 454 455 456 457 458 459 460 GENERATIONS FUELS PJM SPOT MARKET ENERGY PJM CREDITS CAPACITY CREDITS GENERATION SUBTOTAL POWER SUPPLY & GENERATION SUBTOTAL DIRECT EXPENDITURES TRANSMISSION/DISTRIBUTION ELECTRICAL ENGINEERING 256,900 (804,900) (360,000) (7,355,100) (2,047,400) 49,154,200 3,605,700 1,247,900 256,900 (804,900) (360,000) (7,355,100) (1,982,400) 49,154,200 3,615,100 1,283,000 461 462 463 464 465 466 467 468 R ADMINISTRATION METER READING SYSTEMS OPERATIONS DIRECT EXPENDITURE SUBTOTALS OTHER EXPENSES: UTILITY TAX ALLOW FOR UNCOLLECTIBLES RETIREES HEALTH CARE OTHER EMPLOYMENT EXPENSES 929,700 378,600 651,700 6,813,600 1,287,900 250,000 600,000 58,900 933,700 379,500 661,100 6,872,400 1,287,900 250,000 600,000 100 AF 469 470 OPEB UNFUNDED LIABILITY - 109,300 471 GREEN ENERGY PAYMENT TO DEMEC 128,000 128,000 472 INTERFUND SERVICE FEES 3,564,900 3,625,900 473 INTEREST ON DEPOSITS 21,000 21,000 474 BANK & CREDIT CARD FEES 275,000 275,000 475 DEBT SERVICE 1,618,000 1,618,000 476 OTHER EXPENSES SUBTOTAL 7,803,700 7,915,200 477 TRANSFER TO: 478 IMPROVEMENT & EXTENSION 2,500,000 2,500,000 479 GENERAL FUND 10,000,000 10,000,000 480 FUTURE CAPACITY RESERVE 750,000 2,750,000 481 DEPRECIATION RESERVE 750,000 2,750,000 482 RATE STABILIZATION RESERVE 1,250,000 3,250,000 483 TRANSFER TO SUBTOTAL 15,250,000 21,250,000 484 TOTAL EXPENSES 79,021,500 85,191,800 485 BUDGET BALANCE - WORKING CAPITAL 486 TOTALS T $ 13,709,300 92,730,800 487 The City Manager is hereby authorized, without further approval of the City Council, to make $ 488 interdepartmental transfers of up to five percent of the amount hereinafter appropriated to any 489 department with the exception of any transfers prohibited by City Procedure #F306. 490 ADOPTED: 14,133,200 99,325,000 14

491 2016-2017 BUDGET ORDINANCES - FIRST AMENDMENT 492 ELECTRIC UTILITY IMPROVEMENT AND EXTENSION FUND 493 CASH RECEIPTS/REVENUES AND BUDGET FOR 2016-2017 494 BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE CITY OF DOVER, IN COUNCIL MET: 495 The amount hereinafter named aggregating Thirteen Million Eighteen Thousand Six Hundred dollars 496 ($13,018,600) or so much thereof as may be necessary are hereby appropriated from current revenues 497 and other funds for the use by several departments of the Municipal Government for the fiscal year 498 beginning July 1, 2016 and ending June 30, 2017: 499 REVENUES 500 2016/17 2016/17 501 BUDGET REVISED 502 BEGINNING BALANCE $ 5,540,500 $ 9,314,400 503 REVENUES D 504 505 506 507 508 509 510 TRANSFER FROM ELECTRIC TRANSFER FROM WATER/WASTEWATER INCOME FROM SALE OF ASSETS GENERAL SERVICE BILLING DEVELOPMENT GRANTS INTEREST EARNINGS TOTAL REVENUES 511 TOTALS $ 2,500,000 231,200 - 900,000 5,000 40,000 3,676,200 9,216,700 $ 2,500,000 231,200 28,000 900,000 5,000 40,000 3,704,200 13,018,600 512 513 514 515 516 517 518 519 520 R EXPENSES ELECTRIC ADMINISTRATION ELECTRIC GENERATION TRANSMISSION AND DISTRIBUTION ELECTRICAL ENGINEERING METER READING ERP SYSTEM EXPENSE SUMMARY $ 2016/17 BUDGET - $ 1,842,800 1,975,000 910,700 41,800 1,000,000 2016/17 REVISED 23,000 2,580,000 2,175,000 1,731,700 64,800 1,000,000 AF 521 TOTAL EXPENSES 5,770,300 7,574,500 522 BUDGET BALANCE 3,446,400 5,444,100 523 TOTAL BUDGET BALANCE & EXPENSES $ 9,216,700 $ 13,018,600 524 The City Manager is hereby authorized, without further approval of the City Council, to make 525 interdepartmental transfers of up to five percent of the amount hereinafter appropriated to any 526 department with the exception of any transfers prohibited by City Procedure #F306. 527 ADOPTED: T 15

528 2016-2017 BUDGET ORDINANCES - FIRST AMENDMENT 529 ELECTRIC UTILITY CONTINGENCY RESERVE 530 CASH RECEIPTS/REVENUES AND BUDGET FOR 2016-2017 531 BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE CITY OF DOVER, IN COUNCIL MET: 532 The amount hereinafter named aggregating Eight Hundred Fifty Six Thousand Four Hundred dollars 533 ($856,400) or so much thereof as may be necessary are hereby appropriated from current revenues and 534 other funds for the use by several departments of the Municipal Government for the fiscal year 535 beginning July 1, 2016 and ending June 30, 2017: 536 CASH RECEIPTS 537 2016/17 2016/17 538 BUDGET REVISED 539 BEGINNING BALANCE $ 841,900 $ 850,000 540 RECEIPTS 541 INTEREST EARNINGS 6,400 6,400 D 542 TOTAL RECEIPTS 543 TOTALS 544 545 546 547 CURRENT YEAR BALANCE 548 TOTALS EXPENSE SUMMARY $ $ 6,400 848,300 2016/17 BUDGET 848,300 848,300 $ $ 6,400 856,400 2016/17 REVISED 856,400 856,400 R 549 The City Manager is hereby authorized, without further approval of the City Council, to make 550 interdepartmental transfers of up to five percent of the amount hereinafter appropriated to any 551 department with the exception of any transfers prohibited by City Procedure #F306. 552 ADOPTED: AF T 16

553 2016-2017 BUDGET ORDINANCES - FIRST AMENDMENT 554 ELECTRIC UTILITY DEPRECIATION RESERVE 555 SOURCES AND USE OF FUNDS FOR 2016-2017 556 BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE CITY OF DOVER, IN COUNCIL MET: 557 The amount hereinafter named aggregating Twelve Million Nine Hundred Fifty Seven Thousand Three Hundred 558 dollars ($12,957,300) or so much thereof as may be necessary are hereby appropriated from current 559 revenues and other funds for the use by several departments of the Municipal Government for the 560 fiscal year beginning July 1, 2016 and ending June 30, 2017: 561 CASH RECEIPTS 562 2016/17 2016/17 563 BUDGET REVISED 564 BEGINNING BALANCE $ 10,083,600 $ 10,130,700 565 INTEREST EARNINGS 76,600 76,600 566 TRANSFER FROM ELECTRIC OPERATING FUND 750,000 2,750,000 D 567 TOTALS 568 569 570 571 CURRENT YEAR BALANCE 572 TOTALS BUDGET SUMMARY $ $ 10,910,200 2016/17 BUDGET 10,910,200 10,910,200 573 The City Manager is hereby authorized, without further approval of the City Council, to make $ $ 12,957,300 2016/17 REVISED 12,957,300 12,957,300 R 574 interdepartmental transfers of up to five percent of the amount hereinafter appropriated to any 575 department with the exception of any transfers prohibited by City Procedure #F306. 576 ADOPTED: AF T 17

577 2016-2017 BUDGET ORDINANCES - FIRST AMENDMENT 578 ELECTRIC UTILITY FUTURE CAPACITY RESERVE 579 SOURCES AND USE OF FUNDS FOR 2016-2017 580 BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE CITY OF DOVER, IN COUNCIL MET: 581 The amount hereinafter named aggregating Thirteen Million One Hundred Ten Thousand Three Hundred 582 dollars ($13,110,300) or so much thereof as may be necessary are hereby appropriated from current revenues 583 and other funds for the use by several departments of the Municipal Government for the fiscal year 584 beginning July 1, 2016 and ending June 30, 2017: 585 CASH RECEIPTS 586 2016/17 2016/17 587 BUDGET REVISED 588 BEGINNING BALANCE $ 10,134,700 $ 10,283,300 589 INTEREST EARNINGS 77,000 77,000 590 TRANSFER FROM ELECTRIC OPERATING FUND 750,000 2,750,000 D 591 TOTALS 592 593 594 595 CURRENT YEAR BALANCE 596 TOTALS BUDGET SUMMARY $ $ 10,961,700 2016/17 BUDGET 10,961,700 10,961,700 597 The City Manager is hereby authorized, without further approval of the City Council, to make $ $ 13,110,300 2016/17 REVISED 13,110,300 13,110,300 R 598 interdepartmental transfers of up to five percent of the amount hereinafter appropriated to any 599 department with the exception of any transfers prohibited by City Procedure #F306. 600 ADOPTED: AF T 18

601 2016-2017 BUDGET ORDINANCES - FIRST AMENDMENT 602 ELECTRIC UTILITY INSURANCE STABLIZATION RESERVE 603 SOURCES AND USE OF FUNDS FOR 2016-2017 604 BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE CITY OF DOVER, IN COUNCIL MET: 605 The amount hereinafter named aggregating Seven Hundred Sixty Nine Thousand Three Hundred dollars 606 ($769,300) or so much thereof as may be necessary are hereby appropriated from current revenues and other 607 funds for the use by several departments of the Municipal Government for the fiscal year 608 beginning July 1, 2016 and ending June 30, 2017: 609 CASH RECEIPTS 610 2016/17 2016/17 611 BUDGET REVISED 612 BEGINNING BALANCE $ 756,300 $ 763,600 613 INTEREST EARNINGS 5,700 5,700 614 TOTALS $ 762,000 $ 769,300 D 615 616 617 618 CURRENT YEAR BALANCE 619 TOTALS BUDGET SUMMARY $ 2016/17 BUDGET 762,000 762,000 620 The City Manager is hereby authorized, without further approval of the City Council, to make $ 621 interdepartmental transfers of up to five percent of the amount hereinafter appropriated to any 2016/17 REVISED 769,300 769,300 R 622 department with the exception of any transfers prohibited by City Procedure #F306. 623 ADOPTED: AF T 19

624 2016-2017 BUDGET ORDINANCES - FIRST AMENDMENT 625 ELECTRIC UTILITY RATE STABLIZATION RESERVE 626 SOURCES AND USE OF FUNDS FOR 2016-2017 627 BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE CITY OF DOVER, IN COUNCIL MET: 628 The amount hereinafter named aggregating Ten Million Five Hundred Seventy Four Thousand 629 dollars ($10,574,000) or so much thereof as may be necessary are hereby appropriated from current 630 revenues and other funds for the use by several departments of the Municipal Government 631 for the fiscal year beginning July 1, 2016 and ending June 30, 2017: 632 CASH RECEIPTS 633 2016/17 2016/17 634 BUDGET REVISED 635 BEGINNING BALANCE $ 7,207,100 $ 7,269,200 636 INTEREST EARNINGS 54,800 54,800 637 TRANSFER FROM ELECTRIC OPERATING FUND 1,250,000 3,250,000 D 638 TOTALS 639 640 641 642 TRANSFER TO ELECTRIC FUND 643 CURRENT YEAR BALANCE 644 TOTALS BUDGET SUMMARY $ $ $ 8,511,900 2016/17 BUDGET 8,511,900 8,511,900 - $ $ $ 10,574,000 2016/17 REVISED 10,574,000 10,574,000 - R 645 The City Manager is hereby authorized, without further approval of the City Council, to make 646 interdepartmental transfers of up to five percent of the amount hereinafter appropriated to any 647 department with the exception of any transfers prohibited by City Procedure #F306. 648 ADOPTED: AF T 20

649 2016-2017 BUDGET ORDINANCES - FIRST AMENDMENT 650 WORKERS COMPENSATION FUND 651 CASH RECEIPTS/REVENUES AND BUDGET FOR 2016-2017 652 BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE CITY OF DOVER, IN COUNCIL MET: 653 The amount hereinafter named aggregating Two Million One Hundred Thirty Two Thousand Three Hundred 654 dollars ($2,132,300) or so much thereof as may be necessary are hereby appropriated from current 655 revenues and other funds for the use by several departments of the Municipal Government for the 656 fiscal year beginning July 1, 2016 and ending June 30, 2017: 657 OPERATING REVENUES 658 2016/17 2016/17 659 BUDGET REVISED 660 BEGINNING BALANCE $ 1,256,300 $ 1,251,900 661 INTEREST INCOME 25,000 25,000 662 PREMIUM FROM CITY 855,400 855,400 D 663 664 665 666 667 668 669 670 TOTALS PROGRAM EXPENSES/SUPPLIES - CLAIMS INSURANCE STATE OF DEL - SELF INSURANCE TAX CONTRACTUAL SERVICES 671 TOTAL EXPENSES OPERATING EXPENSES $ $ 2,136,700 2016/17 BUDGET 475,000 $ 105,500 39,000 25,000 644,500 $ 2,132,300 2016/17 REVISED 475,000 105,500 39,000 25,000 644,500 R 672 CURRENT YEAR BALANCE 673 TOTALS $ 1,492,200 2,136,700 674 The City Manager is hereby authorized, without further approval of the City Council, to make $ 675 interdepartmental transfers of up to five percent of the amount hereinafter appropriated to any 676 department with the exception of any transfers prohibited by City Procedure #F306. 677 ADOPTED: 1,487,800 2,132,300 AF T 21

678 2016-2017 BUDGET ORDINANCES - FIRST AMENDMENT 679 COMMUNITY TRANSPORTATION IMPROVEMENT FUND 680 CASH RECEIPTS/REVENUES AND BUDGET FOR 2016-2017 681 BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE CITY OF DOVER, IN COUNCIL MET: 682 The amount hereinafter named aggregating Nine Hundred Twelve Thousand Four Hundred dollars 683 ($912,400) or so much thereof as may be necessary are hereby appropriated from current revenues and 684 other funds for the use by several departments of the Municipal Government for the fiscal year 685 beginning July 1, 2016 and ending June 30, 2017: 686 OPERATING REVENUES 687 2016/17 2016/17 688 BUDGET REVISED 689 PRIOR YEAR BALANCE $ 92,100 $ 90,700 690 GRANTS REVENUE 500,000 500,000 691 TOTALS $ 592,100 $ 590,700 D 692 693 694 695 PROGRAM EXP. GRANT RELATED 696 CURRENT YEAR BALANCE 697 TOTALS OPERATING EXPENSES $ $ 2016/17 BUDGET 500,000 $ 92,100 592,100 698 The City Manager is hereby authorized, without further approval of the City Council, to make $ 2016/17 REVISED 505,500 85,200 590,700 R 699 interdepartmental transfers of up to five percent of the amount hereinafter appropriated to any 700 department with the exception of any transfers prohibited by City Procedure #F306. 701 ADOPTED: AF T 22

702 2016-2017 BUDGET ORDINANCES - FIRST AMENDMENT 703 LIBRARY GRANT FUND 704 CASH RECEIPTS/REVENUES AND BUDGET FOR 2016-2017 705 BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE CITY OF DOVER, IN COUNCIL MET: 706 The amount hereinafter named aggregating Three Hundred Thirty Seven Thousand Two Hundred dollars 707 ($337,200) or so much thereof as may be necessary are hereby appropriated from current revenues 708 and other funds for the use by several departments of the Municipal Government for the fiscal year 709 beginning July 1, 2016 and ending June 30, 2017: 710 OPERATING REVENUES 711 2016/17 2016/17 712 BUDGET REVISED 713 PRIOR YEAR BALANCE $ 17,300 $ 37,600 714 STATE GRANT 305,500 297,100 715 FEDERAL GRANT 2,500 2,500 D 716 TOTALS 717 718 719 720 721 722 723 724 STATE GRANTS FURNITURE/FIXTURES OFFICE SUPPLIES PRINTING AND DUPLICATING PROGRAM EXPENSES/SUPPLIES OPERATING EXPENSES $ $ 325,300 2016/17 BUDGET 10,500 $ 30,800 12,500 27,500 $ 337,200 2016/17 REVISED 12,500 30,800 14,000 30,000 725 726 727 728 729 730 731 732 733 R BOOKS SOFTWARE HARDWARE AUDIO VISUAL SUPPLIES POSTAGE TRAINING/CONF/FOOD/TRAV OFF EQP/REPAIRS & MAINT OTHER EQUIP - LEASE SUBTOTAL EXPENSES STATE GRANTS 150,600 - - 77,200 100 5,300 6,300 2,000 322,800 150,300 1,000 4,400 77,200 200 6,000 6,300 2,000 334,700 AF 734 FEDERAL GRANTS 735 PROGRAM EXPENSES/SUPPLIES 2,500 2,500 736 SUBTOTAL EXPENSES FEDERAL GRANTS 2,500 2,500 737 GRAND TOTAL EXPENSES 325,300 337,200 738 CURRENT YEAR BALANCE - - 739 TOTALS $ 325,300 $ 337,200 740 The City Manager is hereby authorized, without further approval of the City Council, to make 741 interdepartmental transfers of up to five percent of the amount hereinafter appropriated to any 742 department with the exception of any transfers prohibited by City Procedure #F306. 743 ADOPTED: T 23

744 2016-2017 BUDGET ORDINANCES - FIRST AMENDMENT 745 POLICE GRANTS FUND 746 CASH RECEIPTS/REVENUES AND BUDGET FOR 2016-2017 747 BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE CITY OF DOVER, IN COUNCIL MET: 748 The amount hereinafter named aggregating Eight Hundred Thirty Two Thousand dollars ($832,000) 749 or so much thereof as may be necessary are hereby appropriated from current revenues and other 750 funds for the use by several departments of the Municipal Government for the fiscal year 751 beginning July 1, 2016 and ending June 30, 2017: 752 OPERATING REVENUES 753 2016/17 2016/17 754 BUDGET REVISED 755 PRIOR YEAR BALANCE $ 295,300 $ 513,000 756 STATE AND FEDERAL GRANTS RECEIVED 319,000 319,000 757 TOTALS 614,300 832,000 D 758 759 760 761 762 763 764 765 766 EXPENDITURES PERSONNEL EXPENDITURES CADET PROGRAM SALARIES CADET PROGRAM FICA CADET PROGRAM W/COMP MATERIALS AND SUPPLIES OPERATING EXPENSES 2016/17 BUDGET 71,400 5,500 4,200 2016/17 REVISED 71,400 5,500 4,200 767 768 769 770 771 772 773 R POLICE EQUIPT & PROG SUPP ADMINISTRATIVE EXPENDITURES CELL PHONE CHARGES TRAINING AUDIT FEES CONTRACTUAL SERVICES TOTAL EXPENDITURES 774 OTHER FINANCING USES 284,000 16,000 17,000 1,000 5,000 404,100 268,800 16,000 46,100 1,000 145,000 558,000 AF 775 OPERATING TRANSFERS-OUT 82,000 274,000 776 TOTAL FINANCING USES 82,000 274,000 777 CURRENT YEAR BALANCE 128,200 - 778 TOTALS $ 614,300 $ 832,000 779 The above budget represents the combination of all State & Federal Grants. 780 The City Manager is hereby authorized, without further approval of the City Council, to make 781 interdepartmental transfers of up to five percent of the amount hereinafter appropriated to any 782 department with the exception of any transfers prohibited by City Procedure #F306. 783 ADOPTED: T 24

784 2016-2017 BUDGET ORDINANCES - FIRST AMENDMENT 785 CDBG GRANT FUND 786 CASH RECEIPTS/REVENUES AND BUDGET FOR 2016-2017 787 BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE CITY OF DOVER, IN COUNCIL MET: 788 The amount hereinafter named aggregating Two Hundred Eighty One Thousand Eight Hundred dollars 789 ($281,800) or so much thereof as may be necessary are hereby appropriated from current revenues 790 and other funds for the use by several departments of the Municipal Government for the fiscal year 791 beginning July 1, 2016 and ending June 30, 2017: 792 OPERATING REVENUES 793 2016/17 2016/17 794 BUDGET REVISED 795 PRIOR YEAR BALANCE $ 2,100 $ 2,100 796 CDBG GRANTS RECEIVED 236,500 279,700 797 TOTALS 238,600 281,800 D 798 799 800 801 802 803 804 805 806 EXPENDITURES PRIOR YEAR CLOSING COST/DOWN PAYMENT PROGRAM PRIOR YEAR NCALL RESEARCH INC. PRIOR YEAR CONNECTION SUPP PROGRAM PRIOR YEAR MHDC EMERGENCY HOME REPAIR PRIOR YEAR HABITAT FOR HUMANITY OPERATING EXPENSES 2016/17 BUDGET - - - - - 2016/17 REVISED 900 1,000 2,500 22,300 3,000 807 808 809 810 811 812 813 814 815 R PRIOR YEAR MHDC HOMEOWNER REHAB. CURRENT YEAR CLOSING COST/DOWN PAYMENT PROGRAM CURRENT YEAR CONNECTION SUPP PROGRAM CURRENT YEAR DOVER INTERFAITH MINISTRY CURRENT YEAR MHDC EMERGENCY HOME REPAIR CURRENT YEAR HABITAT FOR HUMANITY CURRENT YEAR MHDC HOMEOWNER REHAB. CURRENT YEAR SALARIES TOTAL EXPENDITURES - 50,000 7,200 22,000 25,000 30,000 55,000 47,300 236,500 13,400 50,000 7,300 22,000 25,000 30,000 55,000 47,300 279,700 AF 816 CURRENT YEAR BALANCE 2,100 2,100 817 TOTALS $ 238,600 $ 281,800 818 The City Manager is hereby authorized, without further approval of the City Council, to make 819 interdepartmental transfers of up to five percent of the amount hereinafter appropriated to any 820 department with the exception of any transfers prohibited by City Procedure #F306. 821 ADOPTED: T 25

822 2016-2017 BUDGET ORDINANCES - FIRST AMENDMENT 823 SUBSTANCE ABUSE GRANTS FUND 824 CASH RECEIPTS/REVENUES AND BUDGET FOR 2016-2017 825 BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE CITY OF DOVER, IN COUNCIL MET: 826 The amount hereinafter named aggregating One Hundred Sixty Thousand Five Hundred dollars 827 ($160,500) or so much thereof as may be necessary are hereby appropriated from current revenues 828 and other funds for the use by several departments of the Municipal Government for the fiscal year 829 beginning July 1, 2016 and ending June 30, 2017: 830 OPERATING REVENUES 831 2016/17 2016/17 832 BUDGET REVISED 833 PRIOR YEAR BALANCE $ 60,300 $ 99,500 834 STATE GRANTS RECEIVED 28,000 28,000 835 RECREATION REVENUE 33,000 33,000 D 836 TOTALS 837 838 839 840 841 842 843 EXPENDITURES TEMPORARY HELP/BENEFITS PROGRAM EXPENSES/SUPPLIES TOTAL EXPENDITURES OPERATING EXPENSES 121,300 2016/17 BUDGET 60,200 55,000 115,200 160,500 2016/17 REVISED 60,200 55,000 115,200 R 844 CURRENT YEAR BALANCE 845 TOTALS 846 The above budget represents the combination of all State & Federal Grants. $ 6,100 121,300 847 The City Manager is hereby authorized, without further approval of the City Council, to make 848 interdepartmental transfers of up to five percent of the amount hereinafter appropriated to any 849 department with the exception of any transfers prohibited by City Procedure #F306. 850 ADOPTED: $ 45,300 160,500 AF T 26

Memorandum Office of the City Manager PO Box 475 Dover, DE 19903 Phone: (302) 736-7005 FAX: (302) 736-7002 E-mail: skoenig@dover.de.us To: Legislative, Finance, and Administration Committee From: Scott D. Koenig, P.E., ICMA-CM _h-i__ City Manager Date: December 29, 2016 Subject: Consideration of Cost of Living Allowance for General Pension Plan Retirees For several years, representatives of the General Pension Plan retirees have inquired about a Cost of Li ving Allowance (COLA) for the cun·ent city pensioners under the City's General Pension Plan. These discussions have not lined up with the City's budget process. The City Manager is requesting authmization to expend approximately $1 ,000 to analyze the financial impact for three (3) different COLA amounts: 1%, 1.5% and 2.0%. The analysis will be completed by Nyhart. These expenses will be charged against the pension fund assets. The scenarios are one-time COLAs that would increase the retiree's annual payment by the correlating percentage. Once the financial impacts are determined, the City Manager will make recommendations for budgetary considerations. Ultimately, City Council would have to authorize any COLA before one could be implemented. sdk/SDK cc: Donna Mitchell, Contro ller/Treasurer

CITY OF DOVER PROPOSED ORDINANCE #2017-02 1 BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE CITY OF DOVER, IN COUNCIL 2 MET: 3 That Chapter 2 - Administration, Article V - Finance, Section 2-422 - Disposal of Excess Property of the 4 Dover Code be amended by deleting the text indicated in red strikeout and inserting the bold, blue text, as 5 follows: 6 Sec. 2-422. - Disposal of excess property Sale and disposition of real property. 7 (a) Authorized. Except as otherwise provided and upon approval of the city council, the city manager is 8 hereby authorized to sell or dispose of excess property. 9 (b) Determination of excess status. The city manager, upon determining that a city owned parcel of 10 land is excess in nature and that the disposal of such land would be beneficial to the City of 11 Dover, will request, through the legislative, finance, and administration committee, that city 12 council consider disposal of such land. 13 (c) Costs of Conveyance. Unless otherwise specified by the city council, all fees and costs, legal or 14 otherwise, associated with the sale and conveyance of all excess lands shall be paid by the 15 purchaser. 16 (d) Standard method of disposition. 17 (1) The legislative, finance, and administration committee, upon receiving a request to dispose 18 of excess real property, shall, prior to making a recommendation to city council, request all 19 pertinent information including, but not limited to, the following: 20 a. Determination that subject parcel is not required by any other city department. 21 b. Written explanation of why subject parcel is now surplus. 22 c. Determination of whether a zoning change would enhance the sale value of subject 23 parcel and recommend said change if warranted. 24 d. Determination if the parcel’s exact location and size is known and, if not, recommend 25 whether said parcel should be surveyed by the City prior to any sale attempts. 26 (2) City council, after receiving a positive recommendation from the legislative, finance, and 27 administration committee to dispose of a surplus parcel of land, shall, as part of its 28 deliberations: 29 a. Determine if disposal of the parcel is in the City's best interests. 30 b. Determine if disposal by sale, gift, or some other means would best serve the City's 31 interests. 32 c. Determine if the city planner should be requested to initiate rezoning procedures. 33 d. Publicize the pertinent information concerning the surplus parcel and its availability 34 for purchase to the general public at least once a week for two weeks in a local 35 newspaper. 36 e. Make public, and a part of the record, all written correspondence received and, after 37 the publicizing requirements of Section 2 (d) are met, hold a public hearing to receive

Proposed Ordinance #2017-02 - Chapter 2 - Administration, Article V - Finance, Page 2 Section 2-422 - Disposal of Excess Property 38 any other citizen input. 39 (3) City council, after voting to proceed with the sale of surplus land, shall determine: 40 a. If an unbiased appraisal is needed to establish a minimum acceptable price. 41 b. Whether to sell the parcel by public auction or by sealed bid, and what the minimum 42 acceptable offer will be. 43 c. The degree and scope of advertising, with a minimum of exposure being advertisement 44 once a week for two weeks in a newspaper of general circulation within the county. 45 d. Whether the circumstances of and surrounding a particular sale may be such that the 46 best interests of the City would be served by listing the property for sale with a licensed 47 real estate agent. 48 (4) City staff shall, with city council’s direction: 49 a. Arrange for advertisement of the sale. 50 b. Draft the sale bill setting out a description of the parcel to be sold, time, date, and place 51 of sale or bid opening, the terms and conditions of sale, and the City's reservation of 52 acceptance or rejection of any or all bids received at the time of sale or bid opening. 53 c. Order and distribute a sufficient number of sale bills for posting and distribution in the 54 County Courthouse, at the site, and in the general area of the parcel. 55 d. Obtain the services of a professional auctioneer if said sale is to be a public auction. 56 e. Conduct the sale and submit the results to city council. 57 f. Obtain the services of a licensed real estate agent if the sale is to be brokered. 58 (5) City council, after confirming the sale, shall: 59 a. Request the city solicitor to prepare a deed for execution and to arrange for final 60 settlement with the purchaser, at which time the City will deliver the deed, the 61 purchaser will pay all balances due, and the city solicitor will record said deed in the 62 Recorder of Deeds Office for Kent County. 63 (e) Exceptions to standard method of disposition. 64 (1) Exception A - Sale to an abutting owner. When, in the opinion of city council, a public sale 65 would be detrimental to the lands of an abutter, and/or that a public sale would place the 66 abutter at undue risk; or that the combination of abutter's land and City's land would be 67 substantially greater in value than that of the sum of the parcels considered individually, 68 city council may direct the city assessor to have prepared one or more unbiased fee 69 appraisals of the parcel. Thereafter, the subject land will be offered for sale to the said 70 abutter at the appraisal price, plus the appraisal fees, plus the legal costs. In the event the 71 offer is not accepted, a public sale may be ordered. 72 Examples of detrimental affect might be when the surplus City parcel lies between an 73 abutting property and the street and development of the parcel would obstruct visibility of 74 the abutter's property, or when the surplus parcel is zoned multi-family and abuts a single 75 family parcel.

Proposed Ordinance #2017-02 - Chapter 2 - Administration, Article V - Finance, Page 3 Section 2-422 - Disposal of Excess Property 76 (2) Exception B - Trade of lands. Trade of lands may be approved when it is shown beyond 77 doubt that such a trade will be equal to or better than the lands to be traded either on a 78 “square foot for square foot” measure and/or on a “dollar for dollar” measure. 79 (3) Exception C - Conveyance of odd shaped and/or unbuildable parcels. City acquisitions for 80 roads, utility usages, etc. may, after such usage is accomplished, leave a small strip of land 81 that is odd shaped and unbuildable. City council may approve the conveyance of this strip 82 of land to an abutting property owner on request of said owner. The price for these lands 83 shall be at the same cost basis as that paid by the City. If conveyance is made in excess of 84 two years after the date of City acquisition, then the consideration shall either be based on 85 a price established by an unbiased fee appraisal made on the basis of the value added to the 86 abutting property by the acquisition of said lands, or on the City's cost basis for the parcel 87 adjusted for inflation, whichever city council shall select. All fees, legal or otherwise, 88 associated with the conveyance are to be paid by the purchaser. 89 (4) Exception D - Sale of small or irregular shaped lot to an abutting owner. If any excess parcel 90 of land is too small or irregular in shape to be of any value to anyone other than an abutting 91 owner, it may be sold to such owner at either its fee appraised fair market value, or at its 92 fair market value as established by the City's assessment records, whichever city council 93 shall select. The costs of the appraisal and all legal costs shall be paid by the owner 94 requesting the conveyance. 95 (5) Exception E - Donation of land to non-profit organizations. If, in the opinion of city council, 96 the donation of a parcel of excess land to a non-profit organization would be in the best 97 interest of the City, council then reserves unto itself the right to make such donation. 98 (Code 1981, § 2-80; Ord. of 3-12-2001) 99 ADOPTED: * 100 S:\AGENDAS-MINUTES-PACKETS-PRESENTATIONS-ATT&EXH\Committee-Packets\2017\CCW\01-10-2017\ORIGINALS\Ordinance #2017-02 - Chp 2-Admin, Art V-Finance, Sec 2-422-Disposal of Excess 101 Property.wpd 102 SYNOPSIS 103 The proposed amendment codifies the City’s procedure for the sale and disposition of excess 104 city-owned real property. 105 (SPONSORS: NEIL, KOENIG, AND MCDOWELL) 106 Actions History 107 01/10/2017 - Introduction - Council Committee of the Whole/Legislative, Finance, and Administration Committee

ro/;t~/90 I .,: ' .. r I ·" :1 { 1'b/ OQ •. ' ! ,. J PROPOSED PROCEDURE FOR SALE AND DISPOSITION OF REAL PROPERTY I. PURPOSE To establish a policy for the City of Dover regulating the sale and disposition of excess lands. 2. LAWS AND POLICIES City of Dover Code of Ordinances, Chapter 2, Article IV, Section 2-99, authorizes the sale and disposal of excess property. · This policy will standardize the procedure for disposal of excess City owned real property. 3. DETERMINATION A City Staff member, upon determining that a City owned parcel of land is excess in nature and that the disposal of such land would be beneficial to the City of Dover, will request, through the Legislative and Finance Committee, that the Dover City Council consider disposal of such land. 4. STANDARD MIITHOD OF DISPOSITION A. The Legislative and Finance Committee, upon receiving a request to dispose of excess real property, shall, prior to making a recommendation to the Dover City Council, request all pertinent information including, but not limited to, the following: a-1) determination that subject parcel is not required by any other City department. a-2) written explanation of why subject parcel is now surplus. a-3) determination of whether a zoning change would enhance the sale value of subject parcel and recommend said change if warranted. a-4) determine if parcel's exact location and size is known and, if not, recommend whether said parcel should be surveyed by the City prior to any sale attempts.

. ':., · Bale and Disposition of R-...t Property Page Two B. Dover City Council, after receiving a positive recommendation from the Legislative and Finance Committee to dispose of a surplus parcel of land, shall, as part of its deliberations: b-1) determine if disposal of the parcel is in the City's best interests. b-2) determine if disposal by sale, gift, or some other means would best serve the City's interests. b-3) determine if the City Planner should be requested to initiate rezoning procedures. b-4) publicize the pertinent information concerning the surplus parcel and its availability for purchase to the general public at least once a week for two weeks in a local newspaper. b-5) make public, and a part of the record, all written correspondence received and, after the publicizing requirements of Section 4, Paragraph B(4) are met, hold a public hearing to receive any other citizen input. C. Dover City Council, after voting to proceed with the sale of surplus land, shall determine: c-1) if an unbiased appraisal is needed to establish a minimum acceptable price. c-2) whether to sell the parcel by public auction or by sealed bid, and what the minimum acceptable offer will be. c-3) the degree and scope of advertising, with a mtmmum of exposure being advertisement once a week for two weeks in a newspaper of general circulation within the county. c-4) whether the circumstances of and surrounding a particular sale may be such that the best interests of the City would be served by listing the property for sale with a licensed real estate agent. D. City Staff shall, with Council direction: d-1) arrange for advertisement of the sale d-2) draft the sale bill setting out a description of the parcel to be sold, time, date, and place of sale or bid opening, the terms and conditions of sale, and the City's reservation of acceptance or rejection of any oral! bids received at the time of sale or bid opening.

.. ·~" · ·-sale and Disposition of t .1 Property Page Thee d-3) order and distribute a sufficient number of sale bills for posting and distribution in the County Courthouse, at the site, and in the general area of the parcel. d-4) obtain the services of a professional auctioneer if said sale is to be a public auction. d-5) conduct the sale and submit the results to Dover City Council. d-6) obtain the services of a licensed real estate agent if sale is to be brokered. E. Dover City Council, after confirming the sale, shall: e-l) request the City Solicitor to prepare a deed for execution and to arrange for final settlement with the purchaser at which time the City will deliver the deed, the purchaser will pay all balances due, and the City Solicitor will record said deed, in the Recorder of Deeds Office for Kent county. F. If any excess parcel of land is too small or irregular in shape to be of any value to anyone other than an abutting owner, it may be sold to such owner at either its fee appraised fair market value, or at its fair market value as established by the City's assessment records, whichever Council shall select. The costs of the appraisal and all legal costs shall be paid by the owner requesting the conveyance. G. Costs of Conveyance Unless otherwise specified by Dover City Council, all fees and costs, legal or otherwise, associated with the sale and conveyance of all excess lands shall be paid by the purchaser. 5. EXCEPI'IONS TO STANDARD METIIOD OF DISPOSITION Exception A. Sale to an abutting owner: When, in the opinion of City Council, a public sale would be detrimental to the lands of an abutter, and/or that a public sale would place the abutter at undue risk; or that the combination of abutter's land and City's land would be substantially greater in value than that of the sum of the parcels considered individually, Dover City Council may direct the City Assessor to have prepared one or more unbiased fee appraisals of the parcel. Thereafter, the subject land will be offered for sale to the said abutter at the appraisal price, plus the appraisal fees, plus the legal costs. In the event the offer is not accepted, a public sale may be ordered. Examples of detrimental affect might be when the surplus City parcel lies between an abutting property and the street and development of the parcel would obstruct visibility of the abutter's property, of when the surplus parcel is zoned multi-family and abuts a single family parcel.

·- . .• Sale and Disposition of R~ -- Property Page Four Exception B. Trade of lands· A trade of lands may be approved when it is shown beyond doubt that such a trade will be equal to or better than the lands to be traded either on a "square foot for square foot• measure and/or on a "dollar for dollar" measure. Exception C. Conveyance of odd shaped and/or unhujldab!e parcels; City acquisitions for roads, utility usages, etc. may, after such usage is accomplished, leave a small strip of land that is odd shaped and unbuildable. Dover City Council may approve the conveyance of this strip of land to an abutting property owner on request of said owner. The price for these lands shall be at the same cost basis as that paid by the City. If conveyance is made in excess of two years after the date of City acquisition, then the consideration shall either be based on a price established by an unbiased fee appraisal made on the basis of the value added to the abutting property by the acquisition of said lands, or on the City's cost basis for the parcel adjusted for inflation, whichever Dover City Council shall select. All fees, legal or otherwise, associated with the conveyance are to be paid by the purchaser. Exception D. Donation of land to Non-Profit Organizations: If, in the opinion of Dover City Council, the donation of a parcel of excess land to a non-profit organization would be in the best interest of the City of Dover, Council then reserves unto itself the right to make such donation.

1 CITY OF DOVER PROPOSED ORDINANCE #2017-03 2 3 BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE CITY OF DOVER, IN 4 COUNCIL MET: 5 6 That the Dover Code of Ordinances be amended by creating a new Chapter 80 - 7 Personnel. 8 9 BE IT FURTHER ORDAINED: 10 11 That Chapter 2 - Administration, Article IV - Officers and Employees, Division 7 - 12 General Employee Pension Plan of the Dover Code be moved to Chapter 80 - 13 Personnel, Division 3. – General Employee Pension Plan. 14 15 BE IT FURTHER ORDAINED: 16 17 That Chapter 2 - Administration, Article IV - Officers and Employees, Division 8 - 18 Deferred Compensation Plan of the Dover Code be moved to Chapter 80 - Personnel, 19 Division 2. - Deferred Compensation Plan (IRC 457 (b)). 20 21 BE IT FURTHER ORDAINED: 22 23 That Chapter 2 - Administration, Article VI - Other Post-Employment Benefits Fund of 24 the Dover Code be moved to Chapter 80 - Personnel, Division 5. – Other Post- 25 Employment Benefits Fund. 26 27 BE IT FURTHER ORDAINED: 28 29 That Chapter 80 - Personnel of the Dover Code be amended by inserting the text in 30 bold, blue font and deleting the text indicated in red strikeout, as follows: 31 32 Chapter 80 – PERSONNEL 33 DIVISION 7. - GENERAL EMPLOYEE PENSION PLAN[5] 34 Footnotes: 35 --- (5) --- 36 Charter reference— Authority of city to establish pension plans, subpart A. 37 38 Subdivision ARTICLE I. - In General IN GENERAL 39 40 Sec. 2-321 80-1. - Definitions. 41 42 The following words, terms and phrases, when used in this division chapter, shall 43 have the meanings ascribed to them in this section, except where the context clearly 44 indicates a different meaning or the plan documents contradict: 45 Accumulated contributions means the aggregate contributions made by a member 46 under the plan, with interest thereon at the rate of five percent per annum, compounded 47 annually from the last day of the plan year in which such contribution was made to the 48 earlier of the date of commencement of retirement income or the date on which Page 1 of 27

49 contributions are payable pursuant to the provisions of the plan. 50 51 Compensation means a participant's base pay, plus scheduled overtime, 52 payment for being on-call, except those hours reported for being called out, and 53 any retroactive pay corrections which involve any one of the mentioned 54 payments. 55 56 Continuous service means regularly employed without interruption, except for 57 allowable interruptions aggregating not over five years. Allowable interruptions shall 58 include: 59 (1) Leaves of absence granted to employees for illness, research, travel, training or 60 study; 61 (2) Employment in an office to which the employee had been elected by popular 62 vote at a regular city election; 63 (3) Involuntary severance which shall include a required leave of absence on 64 account of maternity, and the employee returns to active employment at the end 65 of that leave of absence. 66 (4) To the extent required by federal law, if an employee leaves the employ of the 67 city to enter the military service of the United States and, upon his their 68 discharge from service, is reemployed by the city at a time when his their 69 reemployment rights are protected by federal law, the employee shall be 70 considered to have been employed by the city during his their period of military 71 service and shall be credited with continuous service which he they would have 72 been credited with as an employee of the city but for his their military service. 73 The period for which disability pension benefits shall have been paid shall be 74 considered as an allowable interruption which is permitted in addition to the 75 allowable interruptions aggregating not over five years in determining 76 subsequent eligibility for retirement benefits under the terms of this division 77 chapter. 78 79 Deferred Compensation Plan (IRC 457 (b)) means the deferred contribution 80 plan. 81 82 Defined benefit pension plan and plan mean the city's general employee pension 83 plan. 84 85 Eligible employee means any person regularly employed in rendering service to the 86 city on a full-time, permanent regular basis, who is not participating in any other a 87 retirement plan to which the city contributes for them, and whose compensation is paid 88 directly by the city. An employee will be considered a full-time employee if he they 89 regularly works 40 or more hours each week. 90 91 General employee pension plan board means the general employee pension 92 Trust board. Page 2 of 27

93 94 Defined benefitGeneral employee pension plan and plan mean the city's general 95 employee defined benefit pension plan. 96 97 Group annuity contract means the group annuity contract entered into between an 98 insurance company and the general employee pension plan board of trustees. 99 100 Money Purchase Plan (IRC 401(a)) means the defined contribution plan. 101 102 OPEB board means the board of trustees of the other post-employment 103 benefits trust as established in Section 80-701. – OPEB Board; established; 104 duties. 105 106 OPEB fund means the other post-employment benefits Trust established in 107 Section 80-700. – OPEB Fund; established. 108 109 Participant means any eligible employee of the city who has met all of the 110 requirements for participation in the pension plan as defined in this section and who has 111 satisfied all of the conditions and requirements set forth in this division a City 112 retirement benefit plan. 113 114 Pension board means the pension board of trustees. 115 116 Pension plan and plan mean the city's general employee pension plan. 117 118 Plan year means the period of one year, commencing on any July 1 and ending 119 immediately prior to the following July 1. 120 121 Retired participant means a participant of the plan who has terminated service and 122 is eligible to receive retirement income under this division chapter. 123 (Code 1968, § 2-87; Ord. of 1-12-1970; Code 1981, § 2-176; Ord. of 7-11-1983; Ord. of 124 7-26-1993, § 1; Ord. of 4-25-1994; Ord. of 5-22-2000; Ord. No. 2010-13, 6-28-2010) 125 ARTICLE II. – RESERVED 126 ARTICLE III. – RESERVED [5] 127 ARTICLE IV. – PENSION PLANS AND RETIREMENT BENEFITS (EXCEPT POLICE) 128 Footnotes: 129 --- (5) --- Page 3 of 27

130 Charter reference— Authority of city to establish pension plans, subpart A. 131 DIVISION 1. – GENERALLY 132 133 Sec. 80-400. – Applicable to all pension plans. 134 135 136 Sec. 2-340. -–(a) Correction of payment errors. 137 138 Should any change or error in the records result in any member or beneficiary receiving 139 from the plan more or less than he would have been entitled to receive had the records 140 been correct, the pension board of trusteeshuman resources director, with the 141 concurrence of the controller/treasurer, shall have the power to correct the error, and 142 as far as practicable and just, to adjust the payments in a manner that the equivalent of 143 the benefit to which the member or beneficiary was correctly entitled shall be paid. 144 (Code 1968, § 2-113; Ord. of 1-12-1970; Code 1981, § 2-195) 145 Sec. 2-343.(b) - Limitation on benefits. 146 147 To the extent necessary, the participant's benefit under this plan and all plans of the city 148 shall be limited in accordance with section 415 of the Internal Revenue Code (26 USC 149 415) and the regulations thereunder, and such code section and regulations shall 150 hereby be incorporated herein. 151 (Code 1981, § 2-198; Ord. of 7-26-1993, § 7) 152 Sec. 2-344.(c) - Distributions. 153 154 All distributions from this plan shall be made in accordance with section 401(a)(9) of the 155 Internal Revenue Code (26 USC 401(a)(9)) and the regulations thereunder, and such 156 code section and regulations shall hereby be incorporated herein. 157 (Code 1981, § 2-199; Ord. of 7-26-1993, § 8) 158 Sec. 2-345. -–(d) Maximum compensation. 159 160 The maximum earnings utilized for purposes of determining benefits shall be limited in 161 accordance with section 401(a)(17) of the Internal Revenue Code (26 USC 401(a)(17)) 162 and the regulations thereunder, and such code section and regulations shall hereby be 163 incorporated herein. 164 (Code 1981, § 2-200; Ord. of 7-26-1993, § 9) 165 DIVISION 82. - DEFERRED COMPENSATION PLAN (IRC 457 (b)) 166 167 Sec. 2-39280-450. - Established; purpose. 168 Page 4 of 27

169 There is hereby established the city employee deferred compensation plan (IRC 457 170 (b)). The purpose of the plan is to establish the basic terms and conditions under which 171 employees shall participate in this plan. Further details, terms and conditions under 172 which retirement, termination, and survivor benefits shall be provided to eligible 173 employees are defined in the deferred compensation plan. 174 (Code 1981, § 2-212; Ord. of 4-25-1994; Ord. of 5-22-2000; Ord. of 6-12-2000; Ord. of 175 7-10-2000; Ord. of 9-11-2000) 176 Sec. 2-39380-451. - Eligibility of participants. 177 178 Each eligible employee not drawing any retirement benefits from the city as of May 179 1, 1994, who makes an irrevocable decision to join the deferred compensation plan, 180 shall, upon compliance with the provisions of this division, become a deferred 181 compensation plan participant on May 1, 1994. Thereafter, each eligible employee who 182 selects the deferred compensation plan upon employment shall become a participant in 183 accordance with the plan. All new employees, except police officers, hired after 184 September 28, 2009 are required to join the defined contribution pension plan as 185 defined in subsection 2-324 Refer to 457 Plan Document for plan provisions, 186 including age 50 catch-up and special catch-up contributions. 187 (Code 1981, § 2-213; Ord. of 4-25-1994; Ord. of 5-22-2000; Ord. of 7-10-2000; Ord. No. 188 2016-10 , 6-13-2016) 189 Sec. 2-39480-452. - Contributions. 190 191 (a) Employee contributions. For each year while a participant of the deferred 192 compensation plan, a participant shall contribute, by payroll deductions, a percentage of 193 his/her compensation as defined in the deferred compensation plan, which shall be a 194 participant's base pay, plus scheduled overtime, payment for being on-call, except those 195 hours reported for being called out, and any retroactive pay corrections which involve 196 any one of the mentioned payments, up to the legal limits as defined in the deferred 197 compensation plan Employees participating in a city pension plan are eligible to 198 participate in the deferred compensation plan (IRC 457 (b)), in addition to the 199 general employee pension plan, upon submission of the signed elective deferral 200 documentation. Contributions shall be made by voluntary payroll deduction. 201 (b) Employer contributions. The city shall contribute an amount equal to each 202 individual's employee contributions, to a maximum percentage of an employee's 203 compensation as defined in the deferred compensation plan, which shall be a 204 participant's base pay, plus scheduled overtime, payment for being on-call, except those 205 hours reported for being called out, and any retroactive pay corrections which involve 206 any one of the mentioned payments for each participant. 207 (c) Treatment. Treatment of contributions shall be handled in accordance with federal 208 and state laws and the applicable provisions of section 2-341 pertaining to the 209 general employee pension plan IRC 457(a)(1)(A). 210 Sec. 80-453. – Interpretation. Page 5 of 27

211 As originally enacted, the deferred compensation plan was a part of the 212 general employee pension plan. The two plans have now been legislatively 213 separated. In the event that it is determined that the separation of the two plans 214 has caused any ambiguity, then reference is made to the applicable provisions of 215 the general employee pension plan in defining, implementing, interpreting, and 216 administering the deferred compensation plan. (Moved from Sec. 2-391) 217 (Code 1981, § 2-214; Ord. of 4-25-1994; Ord. of 5-22-2000; Ord. of 6-12-2000; Ord. of 218 7-10-2000; Ord. of 9-11-2000; Ord. No. 2016-10 , 6-13-2016) 219 Secs. 2-395—2-42080-453-80-499. - Reserved. 220 221 DIVISION 3. – GENERAL EMPLOYEE PENSION PLAN 222 223 Sec. 2-3228-500. -– General employee pension plan Eestablished; purpose. 224 225 (a) Generally. There is hereby established the city general employee pension plan. 226 The purpose of the plan is to establish the terms and conditions under which 227 retirement and disability benefits and other benefits shall be provided to eligible 228 employees of the city. The benefits under the plan shall be in addition to amounts 229 received as social security benefits or from any other pension plan. 230 (b) For employee exclusively. This plan is created for the exclusive benefit of the 231 employees of the city and shall be interpreted in a manner consistent with it being 232 an employee's trust, as defined in section 401(a) of the Internal Revenue Code (26 233 USC 401(a)). Therefore, under no circumstances shall any funds contributed to this 234 plan or any assets of the plan or trust ever revert to or be used or enjoyed by the 235 city, nor shall any such funds or assets ever be used other than for the benefits of 236 the employees of the city and their beneficiaries, prior to the satisfaction of all 237 liabilities under this plan to the employees. 238 (Code 1968, § 2-88; Ord. of 1-12-1970; Code 1981, § 2-177; Ord. of 7-26-1993, § 2) 239 Sec. 2-32380-501. - Eligibility of participant. 240 241 Each eligible employee not drawing any retirement benefits from the mayor and city 242 council as of January 1, 1967, shall, upon compliance with the provisions of this 243 division, become a general employee pension plan participant under this division, 244 commencing on July 1, 1967, or at any subsequent time immediately upon his 245 employment. Effective September 28, 2009 the defined benefit general employee 246 pension plan is closed to new participants. 247 (Code 1968, § 2-97; Ord. of 1-12-1970; Code 1981, § 2-178; Ord. of 6-8-1987; Ord. No. 248 2010-13, 6-28-2010) 249 Sec. 2-32480-502. - Participation mandatory; exceptions. 250 Page 6 of 27

251 The pension plan shall not be construed to give any employee the right to be retained in 252 the employ of the city. All new employees hired after July 1, 1991, shall be required, as 253 a condition of employment, to join the defined benefit general employee pension plan 254 or the defined contribution deferred compensation plan. All new employees hired after 255 September 29, 2009, are required to join the defined contribution pension plan Money 256 Purchase Plan (IRC 401(a)), as defined in Division 4. All participants of the defined 257 benefit general employee pension plan as of September 28, 2009, will remain 258 members of either plan thereafter unless they shall leave the employment of the city, 259 retire, pass away, or elect to terminate their participation in the defined benefit general 260 employee pension plan and become a member of the defined contribution pension 261 plan Money Purchase Plan (IRC 401(a)), as defined in subsection 2-341(f) Division 4. 262 (Code 1968, § 2-97; Ord. of 1-12-1970; Code 1981, § 2-179; Ord. of 5-28-1991; Ord. of 263 5-22-2000; Ord. No. 2010-13, 6-28-2010) 264 Sec. 2-325 80-503. - Defraudment. 265 266 It shall be unlawful for any person to knowingly make any false statement or falsify, or 267 permit to be falsified, any record of the pension plan in an attempt to defraud the plan. 268 (Code 1968, § 2-98; Ord. of 1-12-1970; Code 1981, § 2-180) 269 Sec. 2-326 80-504. - Normal retirement. 270 271 The normal retirement date for each participant shall be the first day of the month 272 following the attainment of the age of 65 years, provided that he has completed ten 273 years of continuous service. 274 (Code 1968, § 2-99; Ord. of 1-12-1970; Code 1981, § 2-181; Ord. of 6-24-1996) 275 Sec. 2-327 80-505. - Early retirement. 276 277 (a) Reduced benefits. A participant who has completed ten years of continuous service 278 and who has attained the age of 55 years may retire at any time within the ten years 279 preceding his normal retirement date; provided, however, that his retirement 280 benefits shall be computed at a reduced rate of one-half percent for each month 281 computed from the date of early retirement to age 65 years. 282 (b) Unreduced benefits. 283 (1) Hired May 1, 1994, or later. For eligible employees hired on or after May 1, 284 1994, a participant who has attained the age of 55 years, and whose attained 285 age plus years of continuous service is equal to or greater than 80, may retire at 286 any time prior to his normal retirement date with no reduction in retirement 287 benefits. 288 (2) Hired before May 1, 1994. For eligible employees hired before May 1, 1994, a 289 participant who has completed 25 years of continuous service, or has attained 290 the age of 50 years and completed 20 years of continuous service may retire at Page 7 of 27

291 any time prior to his normal retirement date with no reduction in retirement 292 benefits. 293 (Code 1968, § 2-100; Ord. of 1-12-1970; Code 1981, § 2-182; Ord. of 10-12-1982, § 1; 294 Ord. of 4-25-1994) 295 Sec. 2-328 80-506. - Later retirement. 296 297 If a participant works beyond his normal retirement date, the payment of the 298 participant's retirement benefits shall be deferred until his actual retirement. 299 (Code 1968, § 2-101; Ord. of 1-12-1970; Code 1981, § 2-183; Ord. of 7-26-1993, § 3; 300 Ord. No. 2010-13, 6-28-2010) 301 Sec. 2-329 80-507. - Forced retirement with pension. 302 303 The general employee pension plan board of trustees, upon recommendation of the 304 city council or the city manager, may require retirement in any case where deemed 305 necessary due to the lack of work or inability of the employee to perform with a 306 satisfactory degree of efficiency, provided that the employee qualifies for either normal 307 retirement pursuant to section 2-326 80-504, or early retirement pursuant to section 2- 308 327 80-505. The employee shall then be entitled to receive, commencing on the first 309 day of the month coinciding with or next following his date of retirement, pension 310 benefits equal to the benefits computed in accordance with the provisions of section 2- 311 330 80-508 on the basis of the employee's service completed prior to actual retirement. 312 (Code 1968, § 2-102; Ord. of 1-12-1970; Code 1981, § 2-184) 313 Sec. 2-330 80-508. - Amount of retirement benefits. 314 315 Retirement January 1, 1995, or later. The amount of retirement benefits payable to 316 a participant who retires on or after January 1, 1995, shall be computed on the basis of 317 one-fiftieth of his average actual monthly earnings multiplied by the total number of 318 years of continuous service. Average actual monthly earnings shall be a participant's 319 base pay plus scheduled overtime, payment for being on call, except those hours 320 reported for being called out, and any retroactive pay corrections which involve any one 321 of the mentioned payments during any period of 36 consecutive months in his final ten 322 years of continuous service, which results in the highest average monthly earnings. 323 If an employee's approved absence is the result of a workers compensation injury, 324 the base wages that the employee would have earned had he not been on workers 325 compensation leave will be included when determining the highest 36 consecutive 326 months within his final ten years of continuous service. 327 The value of lost base salary as a result of mandatory furlough shall be added to an 328 employee's final average compensation and considered in the calculation of the amount 329 of retirement benefits, if the time period in which the mandatory furlough was required is 330 within the highest 36 consecutive months or earnings within the final ten years of 331 continuous service. Page 8 of 27

332 (Code 1968, § 2-103; Ord. of 1-12-1970; Code 1981, § 2-185; Ord. of 10-12-1982, § 2; 333 Ord. of 7-26-1993, § 4; Ord. of 4-25-1994; Ord. of 5-22-2000; Ord. of 7-10-2000; Ord. 334 No. 2010-13, 6-28-2010) 335 Sec. 2-331 80-509. - Form of benefits. 336 337 (a) Normal form. A monthly benefit shall be payable on the first day of the second 338 month preceding the date on which application for such benefit is filed. Payment will 339 be retroactive to the retirement date. Payments of benefits shall be payable monthly 340 thereafter during his lifetime, and terminating with the last payment on the first day 341 of the month of the death of the participant. 342 (b) Death of participant, etc. Upon the death of a participant who has retired, or who is 343 eligible to be retired under any of the provisions of this division, payment shall be 344 made to his their eligible survivors in the amount of 50 percent of the monthly 345 payments to which the participant was or would have been entitled. Upon the death 346 of a participant who has completed a minimum of 20 years of service but is not yet 347 eligible to retire because of age, payment shall be made to his their eligible 348 survivors in the amount of 50 percent of the monthly payment that would have 349 resulted by using his the participant’s service time; however, the benefit is to be 350 computed at a reduced rate of one-half percent for each month the participant was 351 under the correct age for normal retirement. In no instance shall actual monthly 352 payments be less than $200.00, to be effective July 1, 2000. Upon the death of both 353 the participant and eligible survivor, if the benefit payments received in aggregate 354 are less than the member's contributions, the balance of the member's 355 contributions, plus 5 percent interest, will be paid to the surviving beneficiary 356 designated or his estate if no designation has been made and submitted to the 357 general employee pension plan board. The amount of benefit payments received 358 and the amount of the member's contributions shall be determined from the record 359 of the pension board of trustees. 360 (c) Eligible survivor. An eligible survivor shall be one of the following in the order of 361 preference listed: 362 (1) Spouse. The participant's spouse who was married to the participant for at least 363 one year. Surviving spouse shall be required to provide supporting documents 364 of marriage. 365 (2) Children, unmarried. 366 a. The surviving children, biological or legally adopted, of the participant, who 367 have not attained their 18th birthday. 368 b. If said child is attending school on a full-time basis and provides proof of 369 attendance each year of eligibility, with the payment due for the month in 370 which he ceases to attend school on a full-time basis or with the payment 371 due for the month in which his 22nd birthday shall occur, whichever shall 372 occur first. 373 (d) Commencement of payment. Benefits payable to eligible survivors shall commence 374 on the first day of the month following the date of the participant's death. 375 (e) Benefits payable. Benefits payable to eligible survivors shall cease: Page 9 of 27

376 (1) Spouse. With respect to an eligible survivor who is a spouse , with the payment 377 due for the month in which their remarriage or death shall occur, whichever 378 occurs first. 379 (2) Children. With respect to an eligible survivor who is a child(ren), with the 380 payment due for the month in which his 18th birthday or death shall occur, 381 whichever shall occur first. Payments shall be made in accordance with 382 subsections (2)a. and b. 383 (f) Eligibility for benefits. The eligibility of any person or persons to receive payment of 384 benefits as an eligible survivor shall be determined conclusively by the general 385 employee pension plan board based on application of such person or persons and 386 any other information which the pension board deems to be appropriate. 387 (Code 1968, § 2-104; Ord. of 1-12-1970; Code 1981, § 2-186; Ord. of 6-8-1987; Ord. of 388 7-26-1993, § 5; Ord. of 4-25-1994; Ord. of 12-11-1995; Ord. of 4-14-1997; Ord. of 5-22- 389 2000; Ord. of 7-10-2000; Ord. of 3-12-2001; Ord. of 5-12-2003; Ord. No. 2010-13, 6-28- 390 2010; Ord. No. 2011-28, 12-12-2011; Ord. No. 2013-10, 7-22-2013 ) 391 Sec. 2-332 80-510. - Early retirement due to permanent disability. 392 Any employee who, after completing at least ten years of continuous service, shall be 393 injured or whose health shall become permanently impaired to such an extent as to 394 render him totally and permanently disabled, shall be retired upon application and 395 approval of the general employee pension plan board of trustees. The pension amount 396 will be based upon section 2-330 80-508. There shall be no reduction in benefit. 397 (Code 1968, § 2-105; Ord. of 1-12-1970; Code 1981, § 2-187; Ord. No. 2010-13, 6-28- 398 2010) 399 Sec. 2-333 80-511. - Total and permanent disability. 400 401 (a) Definition. As used in this division, a participant shall be deemed to be "totally and 402 permanently disabled" when the general employee pension plan board of trustees, 403 on the basis of a medical examination by a physician or physicians selected by the 404 pension board of trustees, finds the employee: 405 (1) Work generally. To be totally and permanently prevented from engaging in any 406 occupation or employment for remuneration or profit as a result of bodily or 407 mental injury or disease, whether occupational or nonoccupational in cause; or 408 (2) Employment. To be totally and permanently prevented from continuing in his 409 their capacity as an employee as a result of bodily or mental injury or disease, 410 whether occupational or nonoccupational in cause. 411 (b) Exclusions. Total and permanent disability, within the terms of this division, shall 412 exclude disability resulting from or consisting of chronic alcoholism, addiction to 413 narcotics, engaging in a felonious criminal act for which he is they are found guilty, 414 or a willful effort on his their part to bring about the injury or illness to himself 415 themselves or any other person or service in the armed forces of any foreign 416 country. Page 10 of 27

417 (Code 1968, § 2-107; Ord. of 1-12-1970; Code 1981, § 2-188; Ord. of 5-22-2000) 418 Sec. 2-334 80-512. - Commencement of disability benefits. 419 420 (a) Removed from payroll. A participant who files for a disability pension shall not work 421 and be kept on the active payroll and receive credited service from the inception of 422 the disability to the end of the first full calendar month following the date of 423 application. 424 (b) Change in compensation; leave. During the application period above, the 425 participant's compensation shall not be increased. 426 (c) Commencement of benefits. The eligibility for payment of disability benefits under 427 this *division shall commence, if approved, on the first day of the month following 428 the application period set forth in subsection (a). 429 (Code 1968, § 2-107; Ord. of 1-12-1970; Code 1981, § 2-189; Ord. of 8-10-1987; Ord. 430 No. 2010-13, 6-28-2010) 431 Sec. 2-335 80-513. - Termination of employment. 432 (a) Forfeiture of participation. Any participant whose employment is terminated prior to 433 the date he becomes eligible for retirement benefits shall forfeit his status as a 434 participant in the pension plan and all accumulated credit for continuous service. 435 (b) Ten years' service. Any participant with a minimum of ten years of continuous 436 service and whose employment is terminated prior to the date he becomes eligible 437 for retirement benefits under section 2-326 80-504 - Normal retirement, 2-327 80- 438 505 - Early retirement, 2-328 80-506 - Later retirement or 2-332 80-510 - Early 439 retirement due to permanent disability, upon attaining the age of 65 years, shall 440 be eligible for retirement pension benefits under the provisions of section 2-330 441 80-508 - Amount of retirement benefits, upon application to the pension board of 442 trustees. The form of the benefit will be based on the formula which was in effect at 443 the time of termination. 444 (c) Layoffs. Upon recall, any participant whose employment is terminated due to a 445 layoff and is recalled within five years of layoff, may apply to the pension board to 446 have their previous service credits restored immediately. If they have withdrawn 447 their contributions, they must repay them as calculated by the city's actuary. A 448 returning employee must make an election to return previously refunded amounts, 449 plus calculated interest, within 30 days of approval of the general employee 450 pension plan board. Contributions will be reimbursed based on the gross amount 451 received. Participants who are laid off and not recalled within five years shall forfeit 452 their status as a participant in the pension plan and all accumulated credit for 453 continuous service. 454 (d) Request for refund. When an employee leaves the employment of the city and is 455 entitled to withdraw his contributions with interest thereon at the rate of five 456 percent per annum, compounded annually from the last day of the plan year 457 in which such contribution was made to the earlier of the date of 458 commencement of retirement income or the date on which contributions are 459 payable pursuant to the provisions of the plan, then he shall submit a written Page 11 of 27

460 notarized request for a refund of these contributions before payment shall be made. 461 Refunds will be issued 90 days from the date when the notarized request is 462 received. Contributions will automatically be refunded five years from date of 463 separation. 464 (Code 1968, § 2-108; Ord. of 1-12-1970; Code 1981, § 2-190; Ord. of 10-12-1982, § 3; 465 Ord. of 11-28-1988; Ord. of 7-26-1993, § 6; Ord. of 4-25-1994; Ord. of 4-14-1997; Ord. 466 of 7-10-2000; Ord. of 5-12-2003; Ord. of 10-8-2007(3); Ord. No. 2010-13, 6-28-2010) 467 Sec. 2-336 80-514. - Cessation of disability pension benefits. 468 469 (a) A participant shall cease to qualify for disability pension benefits: 470 (1) Recovered. At the time that a the general employee pension plan board of 471 trustees determines, on the basis of a medical examination by a physician or 472 physicians selected by the pension plan board, that a participant is no longer 473 totally and permanently disabled or has sufficiently recovered, but refuses to 474 resume his their regular occupation as an employee or to be reemployed by the 475 city in some other position for which he is they are suited or which is 476 appropriate to his their training and experience; 477 (2) Refuses examination. When the participant refuses to undergo a medical 478 examination requested by the general employee pension plan board of 479 trustees; or 480 (3) Age 65 years. On the first day of the month coinciding with or next following the 481 participant's 65th birthday. 482 (b) Upon the occurrence of the earliest of the above events, disability pension benefits 483 shall cease, except that, if the event of subsection (a)(3) of this section occurs, 484 payment of the normal retirement benefits shall commence on that date, in the 485 same amount as the disability pension benefits. 486 (Code 1968, § 2-109; Ord. of 1-12-1970; Code 1981, § 2-191) 487 Sec. 2-337 80-515. - Effect of state workers' compensation on disability benefits. 488 489 Any disability pension benefits received by a participant under the terms of this 490 *division as the result of an injury or illness compensable under the workers' 491 compensation laws of the state shall be reduced by the amount of the workers' 492 compensation payments actually received by the participant. 493 (Code 1968, § 2-110; Ord. of 1-12-1970; Code 1981, § 2-192) 494 Sec. 2-338 80-516. - Benefits to cease upon reemployment; exceptions. 495 496 The Internal Revenue Code has provided guidance that to be considered 497 retired for purposes of prohibitions against “in-service distributions”, one must 498 have an at least six (6) month break before returning to employment with the Page 12 of 27

499 same employer and that such a return cannot be pre-planned at the time of 500 retirement. If the individual is under the normal retirement age of 65, the 501 individual will be subject to an annual earnings limit of $30,000. 502 503 Any employee of the city who is receiving, or who shall receive, benefits under this 504 *division, and who is thereafter reemployed by the city or appointed to any position by 505 the mayor or council bearing remuneration, shall cease to draw benefits during the 506 period of reemployment. Upon termination of the reemployment, the benefits shall be 507 restored. The provisions of this section shall not apply to any employee who receives 508 remuneration as a result of being elected or appointed to an elective or appointed office 509 in the city, nor to any employee reemployed by the city in a temporary 510 casual/seasonal capacity, not to exceed 180 calendar days. Employees would be 511 eligible to return to temporary casual/seasonal status immediately following retirement. 512 513 Casual/seasonal employees may be employed by the City on a temporary 514 basis in order to provide assistance for the following situations: 515 516 (a) Casual assistance. Employee is needed on a sporadic or on-call basis 517 where hours cannot be predetermined and vary greatly from week to week. 518 Such employees may be used as needed. 519 520 (b) Seasonal assistance. Employee is needed for peak operating seasons. 521 522 (c) Project assistance. Employee performs duties related to a specific project 523 that has defined objectives and an established time period of completion 524 that does not exceed 180 calendar days. 525 526 (d) Primary incumbent replacement. Employee is needed to fulfill the job 527 responsibilities of the primary incumbent who is unable to perform such 528 responsibilities for an extended period of time. Such employees may be 529 used for a maximum of 180 calendar days or the length of time the 530 incumbent is unable to perform the job responsibility, whichever is less. 531 532 (e) Contracting. Any individual participating in the plan who contracts with 533 the City or represents any private enterprise that has a contract with an 534 employer participating in the plan must have a 6-month separation from 535 their effective date of retirement if the individual is under 65. The City 536 shall maintain, in a form prescribed by the Human Resources Director, a 537 certification of the worker’s status. The certification will be used for a 538 determination of the individual meeting the definition of eligible employees 539 under this section. Page 13 of 27

540 (Code 1968, § 2-111; Ord. of 1-12-1970; Code 1981, § 2-193; Ord. of 8-27-1990; Ord. 541 of 4-25-1994; Ord. of 6-11-2007; Ord. No. 2010-13, 6-28-2010) 542 Sec. 2-339 80-517. - Benefit assignment, transfer, etc. 543 544 No participant or beneficiary under the plan shall assign, transfer, hypothecate, 545 encumber, commute or anticipate any interest he may have in payments, funds or 546 contracts under this plan. No interest shall in any way be subject to any legal process, 547 levy of execution, attachment or garnishment proceedings for the payment of any claim 548 against the participant or any beneficiary under the plan, nor shall any such interest be 549 subject to the jurisdiction of any bankruptcy court or insolvency proceedings. 550 (Code 1968, § 2-112; Ord. of 1-12-1970; Code 1981, § 2-194) 551 Sec. 2-340. - Correction of payment errors. 552 Should any change or error in the records result in any member or beneficiary 553 receiving from the plan more or less than he would have been entitled to receive had 554 the records been correct, the pension board of trustees shall have the power to correct 555 the error, and as far as practicable and just, to adjust the payments in a manner that the 556 equivalent of the benefit to which the member or beneficiary was correctly entitled shall 557 be paid. 558 (Code 1968, § 2-113; Ord. of 1-12-1970; Code 1981, § 2-195) 559 Sec. 2-34180-518. - Contributions. 560 561 (a) Payroll deductions 562 (1) Amount. For each year, while a participant of the plan, a participant shall 563 contribute, by payroll deductions, an amount equal to 3½ percent of his average 564 actual monthly earnings as described in section 2-330 80-508 - Amount of 565 retirement benefits (effective May 1, 1994). 566 (2) Employer contributions. The city, pursuant to the provisions of section 414(h)(2) 567 of the United States Internal Revenue Code (26 USC 414(h)(2)), shall pick up 568 and pay the contributions which would otherwise be payable by the employee 569 under this section. The contributions so picked up shall be treated as employer 570 contributions for purposes of determining the amounts of federal income taxes 571 to be withheld from the employee's compensation. 572 (3) Employee contributions picked up by city. Employee contributions picked up by 573 the city shall be paid from the same source of funds used for the payment of 574 compensation to an employee. A deduction shall be made from each 575 employee's compensation equal to the amount of the employee's compensation 576 picked up by the employer. This deduction, however, shall not reduce the 577 employee's compensation for purposes of computing benefits under the 578 retirement system pursuant to this *division. 579 (4) Employee contributions credited. Page 14 of 27

580 a. Employee contributions shall be credited to a separate account within the 581 employee's individual account so that the amount contributed prior to the 582 effective date for the pickup of employee's contributions may be 583 distinguished from the amounts contributed on or after the effective date. 584 b. The contributions, although designated as employee contributions, are 585 being paid by the employer in lieu of the contributions by the employee. The 586 employee will not be given the option of choosing to receive the contributed 587 amounts directly instead of having them paid by the employer to the 588 retirement system. 589 (b) City contributions. The city shall make such contributions as necessary to meet the 590 requirements of the plan. Effective May 1, 1994, the city shall pick up the employee 591 contributions by a reduction in current earnings. Such picked up contributions shall 592 be treated as employer contributions in determining tax treatment under the Internal 593 Revenue Code; however, the contributions so picked up shall be included in 594 earnings for purposes of the plan. Participant contributions which are picked up 595 shall be treated, for all purposes of this plan, in the same manner as participant 596 contributions made prior to May 1, 1994. 597 (c) Other contributions. The general employee pension plan board of trustees shall 598 receive all appropriations, contributions and interest allowances as may be received 599 from time to time by the city from the state or any other source, and designated 600 specifically for employee pensions. 601 (d) Withdrawal from plan. A member who withdraws from the general employee 602 pension plan for any reason, other than retirement, death or disability, may request 603 his their accumulated contributions, plus 5 percent interest, be paid to him them 604 after such date of withdrawal; provided, however, his their contributions shall not be 605 refunded to him them earlier than 90 days after receipt of his their notarized 606 application for the same. 607 (e) Death of ineligible member. Upon the death of a member not eligible to retire under 608 any provision of this *division, his their employee contributions shall be payable in a 609 single sum to his their designated beneficiary or his their estate if no designation 610 has been made. 611 (f) Defined contribution. Each eligible employee not drawing any retirement benefits 612 from the city as of February 1 of each year who makes an irrevocable decision to 613 join the defined contribution plan shall become a defined contribution plan 614 participant on February 1 of that same year and shall forfeit participation in the city 615 employee's pension plan. A member who withdraws from the pension plan in this 616 manner shall have his accumulated contributions paid to him after such date of 617 withdrawal and he shall forfeit any other payments from the pension plan. 618 (Code 1981, § 2-196; Ord. of 10-12-1982, § 4; Ord. of 12-13-1982; Ord. of 7-11-1983; 619 Ord. of 4-25-1994(2); Ord. of 12-11-1995; Ord. of 7-10-2000; Ord. of 5-12-2003; Ord. 620 No. 2010-13, 6-28-2010) 621 Sec. 2-342 80-519. - City paramedics transferred to county. 622 Page 15 of 27

623 Notwithstanding any other provision of this division, all persons employed by the city 624 as paramedics, who are transferred to the county emergency medical services 625 department and who make a written election to remain in the city general employee 626 pension plan, shall continue to be considered eligible employees within the meaning of 627 the pension plan as long as they are employed by the county emergency medical 628 services department. All pension benefits for any such paramedic shall be calculated as 629 if the paramedic had remained a city employee during his employment with the county 630 emergency medical services department. 631 (Code 1981, § 2-197; Ord. of 8-26-1991) 632 Sec. 2-343. - Limitation on benefits. 633 To the extent necessary, the participant's benefit under this plan and all plans of the 634 city shall be limited in accordance with section 415 of the Internal Revenue Code (26 635 USC 415) and the regulations thereunder, and such code section and regulations shall 636 hereby be incorporated herein. 637 (Code 1981, § 2-198; Ord. of 7-26-1993, § 7) 638 Sec. 2-344. - Distributions. 639 All distributions from this plan shall be made in accordance with section 401(a)(9) of 640 the Internal Revenue Code (26 USC 401(a)(9)) and the regulations thereunder, and 641 such code section and regulations shall hereby be incorporated herein. 642 (Code 1981, § 2-199; Ord. of 7-26-1993, § 8) 643 Sec. 2-345. - Maximum compensation. 644 The maximum earnings utilized for purposes of determining benefits shall be limited 645 in accordance with section 401(a)(17) of the Internal Revenue Code (26 USC 646 401(a)(17)) and the regulations thereunder, and such code section and regulations shall 647 hereby be incorporated herein. 648 (Code 1981, § 2-200; Ord. of 7-26-1993, § 9) 649 Secs. 2-346—2-360. - Reserved. 650 651 Subdivision II.Sec. 80-520 -– General employee pension plan Bboard of Trustees; 652 established; duties. 653 654 Sec. 2-361. - Established; duties. 655 656 There is hereby established a general employee pension plan board, of trustees 657 the duties of which shall be to manage the citygeneral employees pension plan. 658 (Code 1968, §§ 2-72, 2-89; Ord. of 1-12-1970; Code 1981, § 2-201; Ord. of 5-22-2000) 659 Sec. 2-36280-521. - Composition. 660 Page 16 of 27

661 The general employee pension plan board of trustees shall consist of the following 662 persons: 663 (1) Manager. The city manager. 664 (2) City officials. Two elected city officials who shall be appointed by the council 665 president, subject to confirmation of a voting majority of the city council at its 666 annual meeting. 667 (3) Participants. Three participants or retired participants of the plan who shall be 668 elected by the participants and retired participants of the plan. 669 (4) Controller/treasurer. The city controller/treasurer. 670 (5) Election. 671 (a) Such election shall be for three-year staggered terms, beginning July 1 672 and ending June 30 three years later. A regular election for filling these positions 673 will be held the third week of June each year. 674 (b) In the first week of April of each year, the city clerk shall notify those 675 eligible to vote of the exact time and place of the election. Any general 676 employee pension plan member that is eligible to vote and appears on the listing 677 of qualified voters who will be unable to appear at the polling place on the date 678 and time of the election may cast his or her vote by absentee ballot in the 679 general employee(s pension plan election for the following reasons: 1) armed 680 forces, 2) public service, 3) occupation, 4) sickness, 5) disability, 6) religion, 7) 681 vacation, or 8) residency outside of the Dover area which makes it infeasible to 682 vote in person. 683 (Code 1968, §§ 2-89, 2-90; Ord. of 1-12-1970; Code 1981, § 2-202; Ord. of 5-10-1982; 684 Ord. of 8-23-1982; Ord. of 11-26-1990, § 5; Ord. of 4-25-1994; Ord. of 5-22-2000; Ord. 685 of 10-8-2007(1); Ord. No. 2009-23, 10-26-2009) 686 Sec. 2-363 80-522. - Term of office of members. 687 688 The term of office of each member of the general employee pension plan board of 689 trustees, except the city controller/treasurer, city manager, and elected city officials, 690 shall commence on the first day of the month following his their election and continue 691 for a period of three years or until his their successor shall be elected and qualified. 692 (Code 1968, § 2-91; Ord. of 1-12-1970; Code 1981, § 2-203; Ord. of 8-23-1982; Ord. of 693 4-25-1994; Ord. of 5-22-2000; Ord. No. 2009-23, 10-26-2009) 694 Sec. 2-364 80-523. - Officers and ex officio members. 695 696 The general employee pension plan board of trustees shall elect a chairperson, a 697 vice-chairperson who shall serve when the chairperson is absent, a secretary and a 698 treasurer or fiscal agent designated by the pension board. The city controller/treasurer 699 shall be the pension fund treasurer and his their bond shall cover all monies deposited 700 with him them. Page 17 of 27

701 (Code 1968, § 2-1992; Ord. of 1-12-1970; Code 1981, § 2-204; Ord. of 4-25-1994; Ord. 702 of 5-22-2000; Ord. No. 2009-23, 10-26-2009) 703 Sec. 2-365 80-524. - Vacancies. 704 705 If a vacancy occurs in the offices of the general employee pension plan board of 706 trustees, the vacancy shall be filled for the unexpired term within 60 days and in the 707 same manner as the office was originally filled. Should a member of the pension plan 708 board of trustees cease to be in the employ of the city, other than by retiring in 709 accordance with this *division, his their office as a member of the board shall be 710 declared vacant. 711 (Code 1968, § 2-95; Ord. of 1-12-1970; Code 1981, § 2-205; Ord. of 5-22-2000; Ord. of 712 10-8-2007(2)) 713 Sec. 2-366 80-525. - Compensation of members. 714 715 Members of the general employee pension plan board of trustees shall serve 716 without compensation. 717 (Code 1968, § 2-89; Ord. of 1-12-1970; Code 1981, § 2-206; Ord. of 5-22-2000) 718 Sec. 2-367 80-526. - Meetings. 719 The general employee pension plan board of trustees shall make all rules as to 720 the time and place of meetings; and a majority of its membership shall be required to 721 transact pension board business. 722 (Code 1968, § 2-94; Ord. of 1-12-1970; Code 1981, § 2-207; Ord. of 5-22-2000) 723 Sec. 2-368 80-527. - Powers. 724 725 The general employee pension plan board of trustees, in administering the 726 pension plan, shall have the following powers in carrying out the purposes thereof: 727 (1) Payment of funds. To pay funds to those entitled to receive them. The pension 728 board chairperson controller/treasurer shall sign all vouchers for the 729 disbursements of the funds and his written order shall fully protect the pension 730 board treasurer or fiscal agent designated by the pension board in the payment 731 of those fundsshall report to the general employee pension board all 732 financial transactions on an annual basis; 733 (2) Purchase annuity contracts. To purchase and pay the costs of group annuity 734 contracts from any insurance company for the benefit of participants; 735 (3) Employment of agents, employees, etc. To employ agents, employees or 736 experts to assist the pension board of trustees in carrying out the provisions of 737 this *division, including an agent to advise and make recommendations 738 concerning the investment of funds, and to pay reasonable compensation for 739 those services, and the compensation may be paid from income or corpus of Page 18 of 27

740 the pension fund or by direct appropriation by the city council as the pension 741 board of trustees and the city council may determine; 742 (4) Investments. To invest and reinvest money in the pension fund, without any 743 limitation, in United States or state municipal bonds or group annuity contracts. 744 Money in the pension fund may also be invested and reinvested in other types 745 of bonds, stocks, and securities to the extent the pension board of trustees may 746 deem best and as is not prohibited by any law now or hereafter in force limiting 747 the investments of the trustees. The pension board of trustees may from time to 748 time change the investments of the fund and, to this end, may make sales of 749 any investment privately, without advertisement and without the necessity of 750 any court order, upon the terms that the pension board deems proper. The 751 funds and investments may also be from time to time turned over to and placed 752 in the custody of any fiscal agent designated by the pension board; 753 (5) Contracts. To generally contract in matters relevant to effectuating and 754 achieving the purposes of this plan; 755 (6) Pension benefits. To receive and pay out pension benefits in accordance with 756 the provisions of this *division, or designate a fiscal agent to receive and pay 757 out the pension benefits; 758 (7) Rules and regulations. To make rules and regulations as may be necessary to 759 effectuate this *subdivision. 760 (Code 1968, § 2-93; Ord. of 1-12-1970; Code 1981, § 2-208; Ord. of 5-22-2000; Ord. of 761 5-12-2003; Ord. No. 2010-13, 6-28-2010) 762 Sec. 2-369 80-528. - City solicitor to render legal services. 763 764 The city solicitor shall render whatever legal service the general employee pension 765 plan board of trustees shall require. 766 (Code 1968, § 2-115; Ord. of 1-12-1970; Code 1981, § 2-209; Ord. of 5-22-2000) 767 Sec. 2-370 80-529. - Appeals. 768 769 Any employee dissatisfied with the action of the general employee pension plan 770 board of trustees shall have the right to appeal to the city council within 30 days from 771 the date of formal notification of that action. 772 (Code 1968, § 2-116; Ord. of 1-12-1970; Code 1981, § 2-210; Ord. of 5-22-2000) 773 Secs. 2-371—2-390. - Reserved. Sec. 80-530-80-599. – Reserved. 774 775 DIVISION 8. - DEFERRED COMPENSATION PLAN 776 777 Sec. 2-391. - Definitions; interpretation. Page 19 of 27

778 (a) Terms defined. As indicated in this division, unless the context otherwise clearly 779 indicates or the deferred compensation plans contradict, the following terms shall 780 mean as indicated below: 781 Eligible employee means any person regularly employed in rendering service to the 782 city on a full-time basis who is not participating in any retirement plan to which the city 783 contributes for them and whose compensation is paid directly by the city. An employee 784 will be considered a full-time employee if he/she regularly works 40 hours each week. 785 Participant means any eligible employee of the city who has met all of the 786 requirements for participation in the deferred compensation plan and has, upon 787 employment, made an irrevocable election to participate in the deferred compensation 788 plan as defined in this subsection (a) and who has satisfied all the conditions and 789 requirements set forth in this division and in the provisions of the plans. 790 (b) Interpretation. As originally enacted, the deferred compensation plan was a part of 791 the general employee pension plan. The two plans have now been legislatively 792 separated. In the event that it is determined that the separation of the two plans has 793 caused any ambiguity, then reference is made to the applicable provisions of the 794 general employee pension plan in defining, implementing, interpreting, and 795 administering the deferred compensation plan. (Moved to Sec. 80-453.) 796 (Code 1981, § 2-211; Ord. of 4-25-1994; Ord. of 5-22-2000; Ord. of 6-12-2000; Ord. of 797 7-10-2000; Ord. of 9-11-2000; Ord. No. 2016-10 , 6-13-2016) 798 Sec. 2-392. - Established; purpose. 799 There is hereby established the city employee deferred compensation plan. The 800 purpose of the plan is to establish the basic terms and conditions under which 801 employees shall participate in this plan. Further details, terms and conditions under 802 which retirement, termination, and survivor benefits shall be provided to eligible 803 employees are defined in the deferred compensation plan. 804 (Code 1981, § 2-212; Ord. of 4-25-1994; Ord. of 5-22-2000; Ord. of 6-12-2000; Ord. of 805 7-10-2000; Ord. of 9-11-2000) 806 Sec. 2-393. - Eligibility of participants. 807 Each eligible employee not drawing any retirement benefits from the city as of May 808 1, 1994, who makes an irrevocable decision to join the deferred compensation plan, 809 shall, upon compliance with the provisions of this division, become a deferred 810 compensation plan participant on May 1, 1994. Thereafter, each eligible employee who 811 selects the deferred compensation plan upon employment shall become a participant in 812 accordance with the plan. All new employees, except police officers, hired after 813 September 28, 2009 are required to join the defined contribution pension plan as 814 defined in subsection 2-324. 815 (Code 1981, § 2-213; Ord. of 4-25-1994; Ord. of 5-22-2000; Ord. of 7-10-2000; Ord. No. 816 2016-10 , 6-13-2016) 817 Sec. 2-394. - Contributions. Page 20 of 27

818 (a) Employee contributions. For each year while a participant of the deferred 819 compensation plan, a participant shall contribute, by payroll deductions, a 820 percentage of his/her compensation as defined in the deferred compensation plan, 821 which shall be a participant's base pay, plus scheduled overtime, payment for being 822 on-call, except those hours reported for being called out, and any retroactive pay 823 corrections which involve any one of the mentioned payments, up to the legal limits 824 as defined in the deferred compensation plan. 825 (b) Employer contributions. The city shall contribute an amount equal to each 826 individual's employee contributions, to a maximum percentage of an employee's 827 compensation as defined in the deferred compensation plan, which shall be a 828 participant's base pay, plus scheduled overtime, payment for being on-call, except 829 those hours reported for being called out, and any retroactive pay corrections which 830 involve any one of the mentioned payments for each participant. 831 (c) Treatment. Treatment of contributions shall be handled in accordance with federal 832 and state laws and the applicable provisions of section 2-341 pertaining to the 833 general employee pension plan. 834 (Code 1981, § 2-214; Ord. of 4-25-1994; Ord. of 5-22-2000; Ord. of 6-12-2000; Ord. of 835 7-10-2000; Ord. of 9-11-2000; Ord. No. 2016-10 , 6-13-2016) 836 Secs. 2-395—2-420. - Reserved. 837 838 DIVISION 4. – MONEY PURCHASE PLAN (IRC 401(A)) 839 840 Sec. 80-600. - Established; purpose. 841 842 There is hereby established a Money Purchase Plan (IRC 401 (a)). The purpose of 843 the plan is to provide pension (retirement) benefits and to establish the basic 844 terms and conditions under which employees shall participate in this plan. 845 Terms and conditions under which retirement, disability, termination, and 846 survivor benefits shall be provided to eligible employees are defined in the Money 847 Purchase Plan documents. The benefits under the plan shall be in addition to 848 amounts received as social security benefits or from any other employers 849 pension plan. 850 851 Sec. 80-601. - For employee exclusively. 852 853 This plan is created for the exclusive benefit of the employees of the city and 854 shall be interpreted in a manner consistent with it being an employee's trust, as 855 defined in section 401(a) of the Internal Revenue Code (26 USC 401(a)). Therefore, 856 under no circumstances shall any funds contributed to this plan or any assets of 857 the plan or trust ever revert to or be used or enjoyed by the city, nor shall any 858 such funds or assets ever be used other than for the benefits of the employees of 859 the city and their beneficiaries, prior to the satisfaction of all liabilities under this 860 plan to the employees. 861 862 Sec. 80-602. - Eligibility of participants. Page 21 of 27

863 864 Each eligible employee not drawing any retirement benefits from the city as of 865 May 1, 1994, who makes an irrevocable decision to join the Money Purchase Plan, 866 shall, upon compliance with the provisions of this division, become a Money 867 Purchase Plan participant and shall forfeit participation in the general employee 868 pension plan. A member who withdraws from the general employee pension plan 869 in this manner shall have his/her accumulated contributions paid to him/her after 870 such date of withdrawal and he/she shall forfeit any other payments from the 871 general employee pension plan. Thereafter, each eligible employee who selects 872 the Money Purchase Plan upon employment shall become a participant in 873 accordance with the plan. 874 875 Sec. 80-603. - Participation mandatory; exceptions. 876 877 Each eligible employee not drawing any retirement benefits from the city as of 878 February 1 of each year who makes an irrevocable decision to join the Money 879 Purchase Plan shall become a plan participant on February 1 of that same year 880 and shall forfeit participation in the general employee pension plan. A member 881 who withdraws from the pension plan in this manner shall have his accumulated 882 contributions paid to him after such date of withdrawal and he shall forfeit any 883 other payments from the general employee pension plan. 884 885 The Money Purchase Plan shall not be construed to give any employee the right 886 to be retained in the employ of the city. All employees hired after September 28, 887 2009, except those police officers who are participating in the State of Delaware 888 pension plan, shall be required, as a condition of employment, to join the Money 889 Purchase Plan. 890 891 Sec. 80-604. - Defraudment. 892 893 It shall be unlawful for any person to knowingly make any false statement or 894 falsify, or permit to be falsified, any record of the pension plan in an attempt to 895 defraud the plan. 896 897 Sec. 80-605. - Contributions. 898 899 (a) Employee contributions. For each year while a participant of the Money 900 Purchase Plan, a participant shall contribute, by payroll deductions, a 901 percentage of their compensation, in accordance with the applicable 902 collective bargaining agreements or Money Purchase Plan documents. 903 904 For each year while also a participant of the deferred compensation plan, a 905 participant may elect to contribute, by payroll deductions, a percentage of 906 their compensation, which shall be a participant's base pay, plus 907 scheduled overtime, payment for being on-call, except those hours 908 reported for being called out, and any retroactive pay corrections which 909 involve any one of the mentioned payments, up to the legal limits as 910 defined in the collective bargaining agreement or personnel policy. Page 22 of 27

911 912 Employee contributions picked up by the city shall be paid from the same 913 source of funds used for the payment of compensation to an employee. A 914 deduction shall be made from each employee's compensation equal to the 915 amount of the employee's compensation picked up by the employer. This 916 deduction, however, shall not reduce the employee's compensation for 917 purposes of computing benefits under the retirement system pursuant to 918 this division. 919 920 (b) Employer contributions. The city shall contribute an amount equal to each 921 individual's employee contributions, in accordance with the appropriate 922 collective bargaining agreements or Money Purchase Plan documents. 923 924 The city, pursuant to the provisions of section 414(h)(2) of the United 925 States Internal Revenue Code (26 USC 414(h)(2)), shall pick up and pay the 926 contributions which would otherwise be payable by the employee under 927 this section. The contributions so picked up shall be treated as employer 928 contributions for purposes of determining the amounts of federal income 929 taxes to be withheld from the employee's compensation. 930 931 (c) Treatment. Treatment of contributions shall be handled in accordance with 932 federal and state laws. 933 934 Sec. 80-605-80-699. - Reserved. 935 936 ARTICLE VIDIVISION 5. - OTHER POST-EMPLOYMENT BENEFITS FUND (OPEB) 937 938 Sec. 2-501. - Definitions. 939 Board means the board of trustees of the other post employment benefits trust as 940 established by this article. 941 OPEB fund means the other post-employment benefits fund established by section 942 2-502. (Moved to definitions in Article I – In General, Sec. 80-1 – Definitions) 943 (Ord. No. 2009-10, 5-11-2009) 944 Sec. 2-50280-700. - Establishment of OPEB fund.; established. 945 946 (a) There shall be established an OPEB fund, a trust fund, separate and distinct from 947 the General Employee Pension funds and the Police Pension fund, established 948 under chapter 2, article IV, division 7, and chapter 62, article III of the City of Dover 949 Code of Ordinances, the contributions to which are subject to city appropriations 950 and rules regarding employer and/or employee contributions as may be 951 promulgated, changed or amended from time to time, and to which earnings on 952 investments, refunds and reimbursements shall be deposited upon receipt, and 953 from which the city's premiums shall be paid, and any fees and expenses 954 authorized by the board shall be paid. No money shall be disbursed from this fund 955 except for the purpose of payment of the city's premiums for postretirement health 956 insurance for employees retired employees under chapters 2 and 62, Medicare B Page 23 of 27

957 premiums for eligible employees, and actuarial and investment consulting 958 fees. 959 (b) The amounts remaining in the OPEB fund, if any, after all premiums, fees, and 960 expenses have been paid for any year shall be retained in such trust for future 961 payments until all city liabilities for post-retirement health insurance premium 962 benefits have been satisfied. 963 (c) The OPEB fund shall be an irrevocable trust exempt from federal income tax under 964 § 115 of the Internal Revenue Code [26 U.S.C. § 115], remote from city creditors, 965 and subject to the financial reporting, disclosure and actuarial requirements of 966 gGovernment aAccounting sStandards bBoard sStatements 43 and 45 or any 967 subsequent gGovernment aAccounting sStandards bBoard updates or statements 968 that may be applicable. 969 (Ord. No. 2009-10, 5-11-2009) 970 Sec. 2-503 80-701. - Management of the OPEB fund OPEB Board; established; 971 duties. 972 973 (a) The board shall be comprised of the controller/treasurer, human resources director, 974 city manager, and two elected city officials. This board shall adopt a trust agreement 975 for the OPEB fund (and may amend the trust agreement from time to time), shall 976 take all actions necessary and appropriate to establish and maintain the OPEB 977 fund, and shall have control and management of the OPEB fund and may utilize its 978 powers pursuant to this chapter in the administration of the OPEB fund. 979 (b) The board shall take the actions necessary and appropriate to establish and 980 maintain the OPEB fund as a trust that is exempt from taxation under Internal 981 Revenue Code § 115 [26 U.S.C. § 115]. The trust shall be maintained and 982 administered by the board solely for the benefit of participants, retirees, and 983 beneficiaries by providing payments for retiree health insurance for medical care in 984 compliance with Internal Revenue Code § 105 [26 U.S.C. § 105] and with this 985 chapter as presented and verified by representatives and/or retiree health insurance 986 service providers of the city. 987 (c) The board shall have no ability or responsibility for setting benefit levels, handling 988 claims, or arbitrating, mediating or otherwise adjudicating claims appeals. Those 989 responsibilities continue to be handled in accordance with the personnel policies of 990 the city. 991 (d) The city shall indemnify a board member in the additional duties contained in this 992 chapter pertaining to the administration and management of the OPEB fund or to sit 993 on a committee of the board who was or is a party or is threatened to be made a 994 party to any threatened, pending or completed action, suit or proceeding, whether 995 civil, criminal, administrative or investigative by reason of the fact that the board 996 member is or was a board member against expenses, (including attorneys' fees if 997 the city solicitor determines that the city solicitor may not provide representation), 998 judgments, fines and amounts paid in settlement actually and reasonably incurred 999 by that board member in connection with such action, suit or proceeding, if the 1000 board member acted in good faith and in a manner the board member reasonably Page 24 of 27

1001 believed to be in the best interest of the city and with respect to any criminal action 1002 or proceeding had no reasonable cause to believe that board member's own 1003 conduct was unlawful. Expenses incurred in defending a civil, administrative or 1004 investigative action, suit or proceeding shall be paid by the city in advance of final 1005 disposition of such action, suit or proceeding if: 1006 (1) Initially authorized by a majority vote of the board exclusive of the member or 1007 members to be indemnified unless more than a majority of the board shall also 1008 be parties to the same action, suit or proceeding, in which instance, such 1009 authorization shall be by the Ccity Ccouncil of the City of Dover; and 1010 (2) Such board member agrees to repay such amount if it is ultimately determined 1011 by the board or the city council, as the case may be, pursuant to paragraph (1) 1012 that such member is not entitled to indemnification under this section. 1013 (Ord. No. 2009-10, 5-11-2009) 1014 Sec. 2-504 80-702. - Actuarial valuations. 1015 1016 (a) The actuary shall prepare an biennial actuarial valuation of the assets and liabilities 1017 of the OPEB fund as of June 30 each year as prescribed by the Governmental 1018 Accounting Standards Board. On the basis of reasonable actuarial assumptions 1019 and tables approved by the board, the actuary shall determine: 1020 (1) The city's annual required determined contribution for payment of the city's 1021 premiums for post- retirement health insurance for employees under the 1022 personnel policies of the city; 1023 (2) Any unfunded actuarial accrued liability. 1024 (b) The city anticipates making contributions to the OPEB fund in such a manner that it 1025 will ultimately contribute its full annual required determined contribution within a 1026 period of years. In the interim, use of the OPEB fund assets to pay retiree health- 1027 care-related premiums will be subject to the appropriations process of the city and 1028 the contribution and distribution processes necessary to carry out the efficient 1029 processing of retiree premium payments by the city. It is further anticipated that for 1030 auditing and reporting convenience, each current year's retiree healthcare 1031 expenses will be contributed and distributed from the OPEB fund without respect to 1032 whether the full annual required contribution has been deposited. 1033 (Ord. No. 2009-10, 5-11-2009) 1034 Sec. 80-703. – Post-retirement benefits. 1035 (a) Retiree health care. 1036 Health care shall be provided in accordance with the appropriate collective 1037 bargaining agreement or City of Dover Personnel Policy. 1038 The City shall provide group hospital, surgical, and health insurance coverage for 1039 eligible retired employees and their families in accordance with the appropriate Page 25 of 27

1040 collective bargaining agreement or City of Dover Personnel Policy. The cost of 1041 dependent care coverage in retirement is the retiree’s responsibility. This applies 1042 to all retirees, unless otherwise specified in employee labor agreements. 1043 1044 (1) Eligibility. Employees retiring under the following conditions may be 1045 eligible for retiree health care: 1046 1047 a. Normal retirement. The normal retirement date for each 1048 participant shall be the first day of the month following the attainment of 1049 the age of 65 years, provided that he has completed ten years of 1050 continuous service. 1051 1052 b. Early retirement. 1053 (1) Age 55 with 10 years of service. A participant who has 1054 completed ten years of continuous service and who has 1055 attained the age of 55 years may retire at any time within the 1056 ten years preceding his normal retirement date. 1057 (2) Hired May 1, 1994, or later. For eligible employees hired 1058 on or after May 1, 1994, a participant who has attained the age 1059 of 55 years, and whose attained age plus years of continuous 1060 service is equal to or greater than 80. 1061 (3) Hired before May 1, 1994. For eligible employees hired 1062 before May 1, 1994, a participant who has completed 25 years 1063 of continuous service, or has attained the age of 50 years and 1064 completed 20 years of continuous service. 1065 (4) Permanent disability. Any employee who, after 1066 completing at least ten years of continuous service, shall be 1067 injured or whose health shall become permanently impaired to 1068 such an extent as to render him/her totally and permanently 1069 disabled, shall be eligible upon application to the Human 1070 Resources Director and approval by the City Manager. 1071 (5) Later Retirement. If a participant works beyond his 1072 normal retirement date, the participant's post-employment 1073 benefits shall be deferred until his actual retirement. 1074 Sec. 2-505.(b) - Medicare part B premium reimbursements. 1075 1076 Effective July 27, 2009, Medicare Part B premium reimbursement was discontinued for 1077 non-bargaining employees hired after that date. Employees hired on or before July 27, 1078 2009 who were not previously entitled to Medicare Part B premium reimbursement and 1079 who were promoted or transferred to a non-bargaining position after May 28, 2013 (date 1080 of adoption), shall not be entitled to the reimbursement. Page 26 of 27

1081 The city will continue the practice of providing provide the standard Medicare Part B 1082 premium reimbursement for non-bargaining employees hired on or before July 27, 2009 1083 and those eligible due to promotion or transfer to a non-bargaining position on or before 1084 May 28, 2013 (date of adoption), with the understanding that it is not considered a 1085 vested right and can be changed or eliminated by council at any time by ordinance or 1086 resolution enacted to that effect and, further, as required by Section 3 of the Charter, 1087 that the fund for payment of the costs of such premium reimbursement shall be 1088 continued, as in the past. 1089 (Ord. No. 2010-05, 4-12-2010; Ord. No. 2013-07, 5-28-2013) 1090 ADOPTED: * 1091 S:\Ordinances\2017\Ordinance #2017-03 – New Chapter 80 - Personnel 1092 1093 SYNOPSIS 1094 The Proposed Ordinance consolidates all pension related ordinances into 1095 a new Chapter 80 - Personnel 1096 1097 * 1098 (SPONSORS: COLE, HOSFELT, AND HUTCHISON) 1099 1100 Actions History 1101 01/10/2016 - Scheduled for Introduction at Legislative, Finance, and 1102 Administration Committee Page 27 of 27