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LEGISLATIVE, FINANCE, AND ADMINISTRATION COMMITTEE AGENDA MARCH 12, 2012 - 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. AGENDA ADDITIONS/DELETIONS 1. Recommendation of Civilian Pension Board - Cost of Living Adjustment (COLA) 2. Approval of Transfer of Additional Reciprocal Borrowing Funds 3. Proposed Ordinance #2012-09 - Budget Amendments for Fiscal Year 2012 4. Public Comment Period 5. Adjournment by 7:00 P.M. /tm S:\AGENDAS & MINUTES\Committee-Agendas\2012\03-12-2012 LF&A.wpd THE AGENDA ITEMS AS LISTED MAY NOT BE CONSIDERED IN SEQUENCE. THIS AGENDA IS SUBJECT TO CHANGE TO INCLUDE THE ADDITION OR THE DELETION OF ITEMS, INCLUDING EXECUTIVE SESSIONS.

ACTION FORM PROCEEDING: Legislative, Finance & Administration Committee DEPARTMENT OF ORIGIN: Finance DATE SUBMITTED: 3/12/12 PREPARED BY: Donna Mitchell, Controller/Treasurer SUBJECT: Civilian Pension Plan Retiree Pension – Cost of Living Adjustment REFERENCE: N/A APPROVALS: City Council EXHIBITS: Minutes of Civilian Pension Board Meeting – February 8, 2012 EXPENDITURE REQUIRED: $98,500 annually AMOUNT BUDGETED: $0 FUNDING SOURCE (Dept./Page in CIP & Budget): None identified RECOMMENDED ACTION: Staff’s recommendation is that if Council approves the 4% Cost of Living Adjustment for the Civilian Pension Plan that the City Manager will be directed to budget each year the for the cost of the cost of living adjustment as follows: General Fund $52,400, Water/Wastewater Fund $5,300, and Electric Fund $40,800. The Civilian Pension Board met on February 9, 2012 to review a Cost of Living Adjustment for current retiree’s and surviving spouses. The following motion was made by Board Member Lester Blakeman. That all members for the Civilian Pension Plan who retired on or before June 30, 2007 will receive a four percent Cost of Living Adjustment effective January 1, 2013; And that, the retirement income of a retired member of the Civilian Pension Plan shall be increased by two percent per annum every January 1. This increase in retirement pay shall be cumulative and the previous year’s increase shall be included in the retired member’s retirement income for the purposes of calculating the annual two percent increase. The first two percent increase would be on January 1, 2014. Please note, the motion did not specifically include surviving spouses, however that is the intent of the maker. Also, Mr. Blakeman’s calculation of the increase presented to the Board was $126,335 which included all retiree’s and not only those retired on or before June 30, 2007. The lower amount in the recommended action coincides with the motion. Staff cannot support an automatic cost of living provision. While we can understand the retiree’s rational, retirement plans have been moving away from this provision as demonstrated by the City’s other retirement plans. All of the State of Delaware Pension Plans with these provisions are now closed.

CIVILIAN PENSION BOARD A Meeting of the Civilian Pension Board was held on February 8, 2012, at 4:03 p.m. with Dr. McGlumphy presiding. Members present were Mr. Bonar, Mr. Blakeman, Mr. Clendaniel, Mrs. Hettinger, Mr. Koenig, and Mrs. Mitchell. Mr. Hare and Mayor Carey were also present. AGENDA ADDITIONS/DELETIONS Mr. Bonar moved for approval of the agenda as presented, seconded by Mr. Blakeman and unanimously carried. ANNUAL REVIEW OF PENSION BENEFITS PAID TO ALL CIVILIAN RETIREES During their meeting of January 27, 2000, members directed the City Clerk to maintain a permanent pending agenda item to review a Cost of Living Adjustment (COLA) for City of Dover retirees prior to the third week of February each year. Mr. Blakeman provided members with a list of retirement payments being issued to members of the Civilian Pension Plan as of December 2011 (Attachment #1). He stated his concern that more than 74% of those employees listed were receiving between $2,400 and $23,837 per year. Mr. Blakeman provided members with the City of Dover Finance Department Pay Plan and Benefit Comparisons - Contract Wage Increase (Attachment #2). He indicated that this document was adapted from a document reviewed by the Salary and Benefits Compensation Comparison Committee at their meeting of December 6, 2012 and that he had added information regarding increases for retired FOP and General Fund Civilian Employees. Mr. Blakeman provided members with a COLA History (Attachment #3) and explained that Civilian Pension Plan retirees had not received an increase since June 26, 2006. Mr. Blakeman noted that during the period between July 1, 2007 and June 30, 2012, active non-bargaining employees received salary increases which ranged from 9% to18.7%, FOP employees received 16%, IUE employees 13.5%, IBEW employees 15.5%, and FOP retirees 10%; however, retirees paid from the General Fund received no increases during this time. He informed members that the City’s Municipal Code provides for an automatic 2% annual increase for retirees in the Police Pension Plan. Mr. Blakeman provided members information regarding Historical Inflation (Attachment #4) and a History of Automatic Cost-of-Living Adjustments from the Social Security Administration (Attachment #5) for their review. Mrs. Hettinger stated her feeling that there was a lack of equity in that retirees in the Police Pension Plan receive an annual increase but Civilian Pension Plan retirees do not. Mr. Blakeman moved that all members of the Civilian Pension Plan who retired on or before June 30, 2007 receive a 4% cost of living adjustment effective January 1, 2013, that the retirement income of a retired member of the Civilian Pension Plan shall be increased by 2% per annum every January 1, and that this increase in retirement pay shall be cumulative and the previous year’s increase shall be included in the retired member’s retirement income for the purposes of calculating the annual 2% increase, and that the first 2% increase would be effective on January 1, 2014. The motion was seconded by Mrs. Hettinger.

CIVILIAN PENSION BOARD MEETING OF FEBRUARY 8, 2012 PAGE 2 Mr. Blakeman noted that language in the motion regarding an automatic annual increase mirrors language in the City of Dover Code regarding the Police Pension Plan (Chapter 62 - Law Enforcement, Article III, Pension Plan, Division 1 - Generally, Section 62-76 (b) Increase). Referring to the City of Dover Finance Department Pay Plan and Benefit Comparison - Contract Wage Increase (Attachment #2), Dr. McGlumphy clarified that figures listed in the “G.F. Retired” column refer to all individuals in the City of Dover organization other than the police. In response to Mr. Hare, Mr. Clendaniel explained that Police Pension Plan participants who retired prior to 2009 continue to receive Medicare Part B reimbursement. Mr. Bonar acknowledged the need of the retirees and the validity of the information presented; however, stated he could not support the motion due to the City’s current dire financial situation. In response to Mr. Bonar, Mr. Blakeman stated that a 4% increase would cost approximately $126,534.60 per year; however, if it were implemented on January 1, 2013, the cost would be reduced by one-half to approximately $63,267.30. He offered several suggestions for funding the increase, as follows: 1) Increase kilowatt hour (kWh) sales by one-half cent. Mr. Blakeman stated that this would spread the cost among all users, not just property owners, and would generate $3.5M in revenue per year. He estimated the monthly impact to electric consumers as follows: 500 kWh $2.50 1,000 kWh $5.00 1,500 kWh $7.50 2,000 kWh $10.00 2,500 kWh $12.50 5,000 kWh $25.00 10,000 kWh $50.00 2) As of February 8, 2011, there were 32 property owners who owed the City a total of more than $300,000 in property taxes. He stated that collecting these taxes would more than fund an increase. 3) As of December 31, 2010, the City’s reserve accounts had over $2,729,910 in excess of the minimum balance, some of which could be used to fund a COLA. Mr. Hare stated his concurrence with Mr. Bonar’s assessment of the City’s financial position; however, he indicated that retirees should be treated similarly to employees. He felt that if employees receive a raise this year, retirees should also receive an increase; however, he advised members that he could not support a 4% raise for retirees if employees do not receive an increase. Mrs. Mitchell stated that the last time a COLA was approved, the actuary calculated the cost of the COLA and the City budgeted money to cover this expense. She stressed the importance of

CIVILIAN PENSION BOARD MEETING OF FEBRUARY 8, 2012 PAGE 3 examining the long-term implications of any increase, noting that the issue is not to fund it just for one year but to fund it over the entire amortization period. Mr. Hare stated his reluctance to guarantee an annual COLA but stated he would be willing to consider a one-time increase that would be subject to review every year. On a call for the question by Mr. Bonar, the motion that all members of the Civilian Pension Plan who retired on or before June 30, 2007 receive a 4% cost of living adjustment effective January 1, 2013, that the retirement income of a retired member of the Civilian Pension Plan shall be increased by 2% per annum every January 1, and that this increase in retirement pay shall be cumulative and the previous year’s increase shall be included in the retired member’s retirement income for the purposes of calculating the annual 2% increase, and that the first 2% increase would be effective on January 1, 2014 failed by a roll call vote of four (4) no and three (3) yes (Mr. Blakeman, Mr. Clendaniel, and Mrs. Hettinger). Mr. Mike Karia, 54 Merion Road (former City of Dover Finance Director), stated that his purpose in attending the meeting was to request a list of the names, mailing addresses, email addresses, and phone numbers of City of Dover retirees so that he could visit and offer assistance to them. However, he stated that, after hearing the discussion regarding a COLA for retirees, he felt compelled to share his point of view. Mr. Karia noted that City Council, the Finance Director, the City Manager, the Human Resources Director, the Mayor, and the actuaries did not consider the long-term effect on the unfunded liability when salary increases were granted to management employees over the last 7-10 years, yet this was considered to be a concern during the discussion of an increase for retirees on small, limited incomes. Mr. Karia explained that there are four (4) factors that contribute to the City’s unfunded liability, including: 1) a decline in the economic market; 2) the fact that retirees are living longer than previously; 3) payments that are made to retirees (increases add to the unfunded liability); and 4) raises received by current employees every year, including management employees who have received increases up to 18%. He commended members for voting their consciences regarding the COLA because of the City’s dire financial situation; however, he requested that members investigate the causes of this situation, including bonds, the new library project which will require more staff and cause higher electric bills, and salaries paid over the last few years under the Pay for Performance system. Mr. Karia requested that members consider the non-management employees and retirees who have given their lives for the City and stated his hope that this type of request would be considered favorably in the future. Mr. Bonar expressed his respect for Mr. Karia and acknowledged that management and top-level employees have received significant pay raises over the past ten years; however, he stated that this had not happened during the last two (2) years. He indicated that he did not believe that raises would be granted during the next fiscal year unless arbitrated and expressed his hope that the City would not negotiate. Mr. Bonar stated that if the economy improves in the future, he would like to see a unanimous vote in favor of granting a COLA, but felt the City was not in a position to do so at this time. He noted that the budget process would be very difficult and painful this year. Mr. Koenig stated that there has been a great deal of hostility expressed regarding the Pay for Performance system; however, he noted that this was a publicly vetted system that was reviewed through the budget process and approved by a majority of Council. In addition, he noted that not all

CIVILIAN PENSION BOARD MEETING OF FEBRUARY 8, 2012 PAGE 4 employees affect the unfunded liability, as those in the deferred compensation plan have no impact. He suggested that further discussion on this topic could be held in conjunction with the budget process for FY 2013. This would provide time to estimate and plan for this cost and would allow for the matter to be publicly vetted through the budget system. Mrs. Hettinger noted that she had been a Pension Board member for many years and that previously Board members met with all employees when they retired and had a voice in their retirement process. She stated that the Board now meets only in regard to investments and she indicated that she was not in favor of this change. Mrs. Hettinger also stated that the Board previously tried to incorporate raises in the budget for those who retired in the 1970s and 1980s. She stated that a plan was developed to allow incremental percentage raises for retirees based on their date of retirement, from earliest to latest retired (proposed raises were not equivalent), and employees who retired during the previous five (5) years would not have been eligible to receive raises because they had received higher salaries. Mrs. Hettinger indicated that she was informed at the time that the City Solicitor determined this approach was discriminatory; however, she felt that a second opinion should be solicited to determine if staggered COLAs are discriminatory. She noted a recent encounter with a 93-year-old City retiree whose job had been to clean City Hall and stated that she was working on behalf of former employees such as this who “built this City” and retired many years ago. Mr. Bonar suggested that Mr. Blakeman discuss a COLA with Mrs. Mitchell to determine if an appropriate allocation for this purpose could be worked into the budget for eventual review by Council. He indicated that this matter could be brought before the Legislative, Finance, and Administration Committee. Dr. McGlumphy suggested reviewing the Solicitor’s previous opinion regarding staggered COLAs. He noted that the budget hearings would proceed within the next month. Mr. Hare explained that contact information for retirees could not be released to the public due to Privacy Act protections; however, the City could assist in the distribution of mailings to these individuals. By unanimous consent, the meeting adjourned at 5:06 P.M. William P. McGlumphy Chairman WPM/JS/dd/tm S:\AGENDAS & MINUTES\Misc-Minutes\PENSION\2012\02-08-2012 Civilian Pension Board.wpd Attachments Attachment #1 - List of Retirement Payments to Members of the Civilian Pension Plan as of December 2011 Attachment #2 - City of Dover Finance Department Pay Plan and Benefit Comparisons - Contract Wage Increase Attachment #3 - COLA History Attachment #4 - Historical Inflation Rates Attachment #5 - History of Automatic Cost-of-Living Adjustments from the Social Security Administration

ATTACHMENT #1 Civilian Pension Board Meeting of February 8, 2012 (INFORMATION PROVIDED BY MR. LES BLAKEMAN)

(INFORMATION PROVIDED BY MR. LES BLAKEMAN)

(INFORMATION PROVIDED BY MR. LES BLAKEMAN)

ATTACHMENT #2 Civilian Pension Board Meeting of February 8, 2012 (INFORMATION PROVIDED BY MR. LES BLAKEMAN)

ATTACHMENT #3 Civilian Pension Board Meeting of February 8, 2012 (INFORMATION PROVIDED BY MR. LES BLAKEMAN)

ATTACHMENT #4 Civilian Pension Board Meeting of February 8, 2012 (INFORMATION PROVIDED BY MR. LES BLAKEMAN)

ATTACHMENT #5 Civilian Pension Board Meeting of February 8, 2012 (INFORMATION PROVIDED BY MR. LES BLAKEMAN)

City of Dover Finance Department PO Box 475 Dover DE 19903-0475 Phone: (302-736-7018 FAX: (302) 736-7177 E-Mail: dmitchell @dover.de.us MEMORANDUM To: Legislative, Finance & Administrative Committee From: Donna Mitchell, Controller/Treasurer Copy: Mayor, City Council, City Manager, & City Clerk Date: March 1, 2012 Subject: Cost of Living Adjustments for City Pension Retiree’s & Surviving Spouses Attached are several items of additional information in relation to the agenda item for a Cost of Living Adjustment “COLA” for Retiree’s and Surviving Spouses. 1. History of Pension adjustments – the COLA History provided did not include the stipend that was paid during Fiscal Year 2009. The history shows that in July 2007 $75,000 was set aside for July 2008, which is incorrect. The Fiscal Year 2009 budget included funding of $100,000 (allocated among the three major funds) for a stipend based on the age of the retiree. The payments ranged from $339 to $815. The City issued two checks on 7/15/2008 and 11/12/2008. These checks were not issued by the Pension Plan but rather from the operating funds similar to a bonus. An excerpt of the minutes from the Budget Meeting is included on page 2. 2. The City has four pension plans, of which one provides for an automatic cost of living adjustment. a. General Employee Pension Plan – No automatic COLA provision, non-law enforcement personnel hired prior to September 30, 2009. Employee contributes 3.5% as of 5/1/94. b. Defined Contribution Plan 401(a) – No COLA provision, for those who elected to transfer from the General Employee Pension Plan as of May 1, 1994 and those hired after September 29, 2009. Employee contributes 3%, City match up to 6%. c. State of Delaware – County & Municipal Police & Firefighters’ Plans – No automatic COLA provision. This plan covers all law enforcement officers hired after September 1, 1982. Ad Hoc COLA’s can be approved by the State Legislature. Employee contributes 7.0%. d. City of Dover – Police Pension Plan – Automatic 2% COLA provision on January 1 each year. Minutes attached on page 3. The State maintains a separate COLA Fund for police plans that provide COLA’s. The City receives State monies equal to 75% of the actuarial determined value of the COLA after we certify we have contributed the actuarial determined 25%. We budget a place holder of $95,000 for the match each year. Attached is a handout from a recent meeting I attended that provides background on the COLA Fund. Employee contributes 4.0%. 3. The General Employee Plan Schedule of Funding Progress is provided on the following page.

Cost of Living Adjustment – Retirees’ (continued) March 12, 2012 Excerpt from Budget Meeting of May 21, 2008 Discussion - COLA Increase for Retirees Mr. DePrima reminded members that during their Regular Meeting of April 14, 2008, City Council considered a recommendation of the Civilian Pension Board (from their meeting of February 29, 2008) that City Council fund a $100,000 one-time stipend to retirees to be provided based on the age of the retiree, to be distributed July 15th and November 15th. Although there was a motion to approve a stipend for current retirees, including those that retired from the Deferred Compensation Plan, with funding to be provided from the excess carry forward balance in the Worker’s Compensation Fund, members tabled the matter to allow for its consideration by City Council during the Budget Hearings. Noting that there is no adjustment to the pension benefits being recommended, Mr. Hogan reiterated that although there is reference to a COLA, the recommendation is to provide for a one-time stipend to retirees. For informational purposes, Council President Hogan advised members that on July 7th, there will be a workshop meeting held on the pension and COLA issues. Responding to Mr. Leary, Mrs. Mitchell stated that $100,000 has been included in the draft budget for fiscal year 2008/2009 to provide the stipend to retirees. There being no objections, Council President Hogan declared a brief recess. Fiscal Year 2011 Comprehensive Annual Financial Report – Schedule of Funding Progress General Employee Pension Fund Required Supplementary Information Schedule of Funding Progress Actuarial Unfunded Unfunded as a Valuation Plan Accrued Accrued Funded Percent of Date Assets Liability Liability Ratio Payroll Payroll 7/1/05 $ 16,277,640 $ 39,860,241 $ 23,582,601 40.8% $ 7,380,629 319.5% 7/1/06 $ 15,712,605 $ 41,103,526 $ 25,390,921 38.2% $ 7,612,121 333.6% 7/1/07 $ 17,616,172 $ 42,335,142 $ 24,718,970 41.6% $ 8,006,103 308.8% 7/1/08 $ 19,381,391 $ 43,800,212 $ 24,418,821 44.2% $ 8,716,361 280.1% 7/1/09 $ 19,880,033 $ 45,525,384 $ 25,645,351 43.7% $ 8,786,981 291.9% 7/1/10 $ 19,963,426 $ 52,462,693 $ 32,499,267 38.1% $ 8,256,751 393.6% (continued on Page 3 – Police Pension prior minutes) 2

Cost of Living Adjustment – Retirees’ (continued) March 12, 2012 Minute excerpts from 1969 & 1982 – Police Pension Plan 1969 - POLICE PENSION PLAN On motion of Mr. Hayes, seconded by Mr. Biggs, Council by unanimous vote adopted the following Retirement Plan for the City of Dover Police effective January 1, 1970. RETIREMENT PLAN FOR CITY OF DOVER POLICE ARTICLE 2 - MEMBERSHIP 2.1 An Employee who was a Member of the City of Dover Employee’s Pension Plan prior to January 1, 1970 will continue to be covered under this Plan. 2.2 Each new Employee hired on or after January 1, 1970 shall participate in this Plan on the first day of the month coincident with or next following the date on which he was hired. ARTICLE 3 - CONTRIBUTIONS 3.1 For each year while a Member of the Plan, a Member shall contribute by payroll deductions an amount equal to 4% of his Earnings. ARTICLE 5 - AMOUNT OF RETIREMENT INCOME 5.1 The Retirement Income to which a Member is entitled on his Retirement Date shall be equal to 2% of his Average Earnings, multiplied by his full years of Service, including fractions of a year to the nearest 1/12th year. 5.2 If the rate of Earnings payable to Employees on active duty of equivalent rank of that held by the Member immediately prior to his Retirement Date are increased, the Retirement Income of the retired Member shall be increased effective as of the first day of the month following the date of such Earnings increase. The increased amount of Retirement Income shall be in the same proportion as the increase in rate of Earnings of such active Employees is to the rate of Earnings of the retired Member immediately prior to his Retirement Date. 1982 - PUBLIC HEARING - ORDINANCE AMENDMENT TO POLICE PENSION PLAN A public hearing was duly advertised for this time and place to consider an ordinance that would amend certain provisions of the Police Pension Plan. Mayor McDonough declared the hearing open. By motion of Mr. Boaman, seconded by Mr. Carey, Council by a unanimous roll call vote, adopted the following amendments to the Police Pension Ordinance, effective January 1, 1982: BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE CITY OF DOVER, IN COUNCIL MET: The Code of Ordinances, City of Dover is hereby amended by deleting Article II, PENSION PLAN, of Chapter 18, POLICE DEPARTMENT in its entirety and by substituting therefore the following: Sec. 18-24. Contributions (a) For each year while a member of the Plan, a member shall contribute by payroll deductions an amount equal to four percent of his earnings. Sec. 18-26. Amount of Retirement Income. (a) The retirement income to which a member is entitled on his retirement date shall be equal to two and one-half percent of his average earnings, multiplied by his full years of service, including fractions of a year to the nearest one-twelfth year. However, this amount shall not exceed 62 and one-half percent of his average earnings. (b) The retirement income of a retired member of this plan shall be increased by two percent per annum every January 1st. This increase in retirement pay shall be cumulative and the previous year's increase shall be included in the retired member's retirement income for the purposes of calculating the annual two percent increase. 3

ACTION FORM PROCEEDING: Legislative, Finance and Administration Committee DEPARTMENT OF ORIGIN: Parks, Recreation & Library DATE SUBMITTED: March 1, 2012 PREPARED BY: Margie Cyr, Library Director SUBJECT: Approval of Transfer of Additional Reciprocal Borrowing Funds REFERENCE: Library Financing Plan RELATED PROJECT: New Dover Library Project REVIEWED BY: Scott Koenig, City Manager & Donna Mitchell, Controller/Treasurer EXHIBITS: Memo 2/14/12 Kent County Levy Court Commissioners EXPENDITURE REQUIRED: N/A AMOUNT BUDGETED: N/A FUNDING SOURCE (Dept./Page in CIP & Budget): TIME TIMETABLE: RECOMMENDED ACTION: Approval to transfer $15,000 from General Fund, contributed by Kent County to the Library Reserve Fund. BACKGROUND AND ANALYSIS Kent County collects a special Library Tax from each County property owner who does not reside in a municipality. This tax is used to reimburse the municipal libraries in the County for each item loaned to a County resident who is not a resident of a municipality. In 2011, residual library tax was distributed at a rate of $30,000 to each municipal library to be used for capital purposes. The Dover City Council approved transfer of these funds to the Library Reserve Fund. In 2012, residual tax was disbursed by the Kent County Levy Court at a rate of $15,000 per library. Staff recommends transfer of the $15,000 Kent County residual Reciprocal Borrowing funds to the Library Reserve Fund for the capital project. Note – This item has been included in the proposed budget amendment included on this same Agenda. It this item is not approved, it will be removed from the proposed budget amendment.

MEMORANDUM Department of Finance 555 Bay Road Dover, DE 19901 Phone: (302) 744-2386 TO: Levy Court Commissioners Mike Petit de Mange, County Administrator FROM: Susan Durham, CPA Director of Finance DATE: February 14, 2012 RE: Distribution of Residual Library Tax Purpose: Distribution of Residual Library Tax (Note: A residual balance is defined as unobligated funds remaining from funds collected for a designated purpose.) History: The most recent distribution of residual library tax was In June 2010 and it was distributed at a rate of $30,000 per each of the four (4) municipal libraries (Dover, Smyrna, Harrington, & Milford) and $30,000 for Kent County Library for a total of $150,000. The purpose of these funds was for capital expenditures. Distribution of Residual Library Tax: On January 21, 2012 at the Kent County Levy Court Annual Retreat there was a discussion regarding the distribution of the residual library tax funds. The following facts and predictions were presented at the meeting. At the end of Fiscal Year 2011 the balance in the residual library tax is $214,754. In Fiscal Year 2012 the library tax rate was reduced from $.037 per $100 of tax assessed value to $.033 per $100 of tax assessed value. The prediction for the current fiscal year is that the reciprocal borrowing distribution to the four (4) municipal libraries will exceed the total tax collections. If this occurs, some of the residual library tax will be used to fill the gap. Based on the information presented there was a consensus at the Retreat to bring forward for a vote a $15,000 distribution to the City of Dover Library, Town of Smyrna Library, City of Harrington Library, Town of Milford Library, and the Kent County Library for a total of $75,000. This will leave a balance of $139,754.

Distribution of Residual Library Tax February 14,2012 MOTION: Move to approve the distribution of $75,000 in residual library tax in equal installments of $15,000 to each of the four municipal libraries - Dover, Smyrna, Harrington, Milford - and to the Kent County Public Library for the purpose of capital improvements or expenditures.

ACTION FORM PROCEEDING: Legislative, Finance & Administration Committee DEPARTMENT OF ORIGIN: Finance DATE SUBMITTED: 03/12/2011 PREPARED BY: Donna Mitchell, Controller/Treasurer SUBJECT: Proposed Budget Amendment for Fiscal Year 2012 APPROVALS: City Council EXHIBITS: Draft Budget Ordinance #2012-09 EXPENDITURE REQUIRED: Total: AMOUNT BUDGETED: N/A FUNDING SOURCE: TIMETABLE: RECOMMENDED ACTION: Staff recommends approval of the proposed Budget Amendment for Fiscal Year 2012. The proposed budget amendment includes the adjustments to the Beginning Budget Balances for the major operating and capital funds now that the City’s audit has been completed. It also includes a transfer to the OPEB Trust towards the unfunded liabilities in these amounts as approved by Council action on September 12, 2011 as follows: General Fund $239,532; Water/Wastewater Fund $372,417; Electric Fund $573,547. Additional adjustments are as follows:  Kent County Book reimbursement - $15,000 additional reciprocal borrowing funds being recommended to transfer to the Library Project  DEMA Reimbursements for Hurricane Irene ($80,806) and Downtown Cameras ($23,870) totaling $104,676; Expenses ($131,245) for Hurricane exceeded reimbursement by $48,499 reflected as a reduction in the Ending Budget Balance. The Budget Balance falls below the 8% policy requirement at 7.8%, however the savings from attrition this fiscal year should be able to cover the difference.  Recreation Grant for Watershed Coordinator was not budgeted for, both revenue ($35,323) and expense ($33,443) are adjusted  Municipal Street Aid - $131,760 additional funds for street capital improvements; being transferred to Community Transportation Fund to cover City’s portion of street improvements; This amount along with the $15,000 for the Library project equals the $146,760 transfer to Capital Projects.  The Water/Wastewater Improvement and Extension Fund reflects the final State Revolving Fund loan reimbursement for the 2009 Wastewater Loan now that the projects have been completed. The original loan amount authorized by Council was $5,942,480 based on the Engineer estimates and the project reimbursements totaled $5,581,058. This decreased the projected debt by $361,422.  The Electric Fund includes an appropriation from the Current Year - Ending Budget Balance in the amount of $150,000 to complete the valuation study approved by City Council. The Budget Balance remains in compliance with the financial policy.

CITY OF DOVER ORDINANCE # 2012-09 2011-2012 BUDGET ORDINANCES 1 BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE CITY OF DOVER, IN COUNCIL MET: 2 The amount hereinafter named in various City funds are changed from the currently approved revenues and other funds for 3 the use by several departments of the Municipal Government for the fiscal year beginning July 1, 2011 and ending June 30, 2012: 4 GENERAL FUND 5 REVENUES AND BUDGET FOR 2011-2012 6 ORIGINAL REVISED 7 2011/12 1st Budget Proposed 2011/12 8 BUDGET Adjustment Budget Adj. BUDGET 9 BEGINNING BALANCE $ 3,322,305 $ - $ 239,532 $ 3,561,837 10 REVENUES 11 FINES AND POLICE REVENUE 579,000 - - 579,000 12 911 FEE 60,000 - - 60,000 13 INVESTMENT INCOME 215,900 - - 215,900 14 LIBRARY REVENUES 44,100 - - 44,100 15 KENT COUNTY BOOK REIMBURSEMENT 390,900 - 15,000 405,900 16 BUSINESS LICENSES 1,523,675 - - 1,523,675 17 PERMITS AND OTHER LICENSES 934,000 - - 934,000 18 MISCELLANEOUS CHARGES 165,750 - - 165,750 19 POLICE EXTRA DUTY 300,000 - - 300,000 20 PROPERTY TAXES 11,133,367 - - 11,133,367 21 BID REVENUE 51,821 - - 51,821 22 RECREATION REVENUE 152,000 - - 152,000 23 FRANCHISE FEE 520,000 - - 520,000 24 TRASH FEES 2,050,000 - - 2,050,000 25 RENT REVENUE - GARRISON FARM 87,000 - - 87,000 26 COURT OF CHANCERY FEES 690,000 - - 690,000 27 REVENUES SUBTOTAL 18,897,513 - 15,000 18,912,513 28 INTERFUND SERVICE RECEIPTS 29 INTERFUND SERVICE RECEIPTS WATER/WASTEWATER 988,393 - - 988,393 30 INTRAFUND SERVICE RECEIPTS ELECTRIC 3,370,778 - - 3,370,778 31 INTERFUND SERVICE RECEIPTS SUBTOTAL 4,359,171 - - 4,359,171 32 GRANTS 33 POLICE RELATED 60,000 - - 60,000 34 CAPITAL SCHOOL DISTRICT REVENUE 73,500 - - 73,500 35 DEMA HOMELAND SECURITY GRANT - - 104,676 104,676 36 POLICE PENSION GRANT 620,000 - - 620,000 37 RECREATION GRANT - - 35,383 35,383 38 UNIVERSAL RECYCLING GRANT - 79,873 - 79,873 39 GRANTS SUBTOTAL 753,500 79,873 140,059 973,432 40 TRANSFERS FROM 41 TRANSFER TAX 900,000 - - 900,000 42 MUNICIPAL STREET AID 526,814 - 131,760 658,574 43 CIVIL TRAFFIC PENALTIES 1,000,000 - - 1,000,000 44 WATER/WASTEWATER 424,508 - - 424,508 45 ELECTRIC 7,876,288 - - 7,876,288 46 TRANSFERS FROM SUBTOTAL 10,727,610 - 131,760 10,859,370 47 TOTAL REVENUES $ 34,737,794 $ 79,873 $ 286,819 $ 35,104,486 48 TOTAL BEGINNING BALANCE AND REVENUES $ 38,060,099 $ 79,873 $ 526,351 $ 38,666,323

2011-2012 BUDGET ORDINANCES - CONTINUED GENERAL FUND - REVENUES AND BUDGET FOR 2011-2012 49 ORIGINAL REVISED 50 2011/12 1st Budget Proposed 2011/12 51 BUDGET Adjustment Budget Adj. BUDGET 52 DEPARTMENT EXPENSES 53 CITY CLERK $ 296,393 $ - $ - $ 296,393 54 COUNCIL 120,699 - - 120,699 55 TAX ASSESSOR 213,175 - - 213,175 56 FIRE 684,725 - - 684,725 57 GROUNDS MAINTENANCE 979,922 - - 979,922 58 LIBRARY 1,159,087 - - 1,159,087 59 RECREATION 789,701 - 33,443 823,144 60 LIFE SAFETY 449,226 - 23,870 473,096 61 CODE INFORCEMENT 284,489 - - 284,489 62 PLANNING 422,781 - - 422,781 63 INSPECTIONS 553,907 - - 553,907 64 ECONOMIC DEVELOPMENT 223,717 - - 223,717 65 POLICE 12,955,807 - - 12,955,807 66 POLICE EXTRA DUTY 430,600 - - 430,600 67 STREETS 782,810 - 131,245 914,055 68 SANITATION 2,330,976 79,873 - 2,410,849 69 CITY MANAGER 622,127 - - 622,127 70 INFORMATION TECHNOLOGY 685,871 - - 685,871 71 FINANCE 852,283 - - 852,283 72 PUBLIC SERVICES - ADMINISTRATION 472,692 - - 472,692 73 FACILITIES MANAGEMENT 952,693 - - 952,693 74 CENTRAL SERVICES 693,339 - - 693,339 75 FLEET MAINTENANCE 695,422 - - 695,422 76 CUSTOMER SERVICES 928,112 - - 928,112 77 HUMAN RESOURCES 384,758 - - 384,758 78 MAYOR 81,154 - - 81,154 79 DEPARTMENT SUBTOTALS 29,046,466 79,873 188,558 29,314,897 80 OTHER EXPENSES 81 DEBT SERVICE 327,270 - - 327,270 82 INSURANCE 550,000 - - 550,000 83 RETIREES HEALTH CARE 1,374,709 - - 1,374,709 84 OPEB UNFUNDED LIABILITY - - 239,532 239,532 85 PENSION UNFUNDED LIABILITY 1,450,000 - - 1,450,000 86 POLICE PENSION FUND 620,000 - - 620,000 87 POLICE PENSION UNFUNDED LIABILITY 95,000 - - 95,000 88 UNCOLLECTIBLES - TRASH AND OTHER 10,000 - - 10,000 89 STREET LIGHTS 960,000 - - 960,000 90 OTHER EXPENSE SUBTOTAL 5,386,979 - 239,532 5,626,511 91 TRANSFERS 92 TRANSFER TO CAPITAL FUND - PROJECTS 623,847 - 146,760 770,607 93 TRANSFER TO CAPITAL FUND - RESERVE 200,000 - 200,000 94 TRANSFERS SUBTOTAL 823,847 - 146,760 970,607 95 CURRENT YEAR BALANCE $ 2,802,807 $ - $ (48,499) $ 2,754,308 96 TOTAL CURRENT YEAR BALANCE AND EXPENDITURES $ 38,060,099 $ 79,873 $ 526,351 $ 38,666,323 97 The City Manager is hereby authorized, without further approval of the City Council, to make interdepartmental transfers of up 98 to five percent of the amount hereinafter appropriated to any department with the exception of any transfers prohibited by 99 City Procedure #F306.

2011-2012 BUDGET ORDINANCES - CONTINUED 100 GOVERNMENTAL CAPITAL PROJECTS FUND 101 REVENUES AND BUDGET FOR 2011-2012 102 REVENUES 103 ORIGINAL REVISED 104 2011/12 1st Budget Proposed 2011/12 105 BUDGET Adjustment Budget Adj. BUDGET 106 BEGINNING BALANCE - PROJECTS $ 195,191 $ - $ 61,201 $ 256,392 107 BEGINNING BALANCE - LIBRARY - 100,962 - 100,962 108 REVENUES 109 STATE GRANTS 5,597,505 1,519,678 - 7,117,183 110 DEMEC GRANT - 215,000 - 215,000 111 BTOP & GREENHOUSE GAS REDUCTION GRANTS - 90,000 - 90,000 112 KENT COUNTY LIBRARY CONTRIBUTION - 1,000,000 - 1,000,000 113 LIBRARY GREEN ENERGY/BRIDGE LOAN 2,334,889 365,111 - 2,700,000 114 CONSTRUCTION LOAN FOR LIBRARY - 274,961 - 274,961 115 TRANSFER FROM LIBRARY RESERVE 3,262,615 (671,831) - 2,590,784 116 FRIENDS OF THE LIBRARY DONATION - 210,000 - 210,000 117 LOAN PROCEEDS - STREETS, CITY HALL 2,000,000 - - 2,000,000 118 TRANSFER FROM GENERAL FUND FOR PROJECTS 623,847 - - 623,847 119 INTEREST EARNINGS 10,900 - - 10,900 120 TOTAL REVENUES $ 13,829,756 $ 3,002,919 $ - $ 16,832,675 121 TOTAL BEGINNING BALANCE AND REVENUES $ 14,024,947 $ 3,103,881 $ 61,201 $ 17,190,029 122 EXPENSE SUMMARY 123 ORIGINAL REVISED 124 2011/12 1st Budget Proposed 2011/12 125 DEPARTMENT EXPENSES BUDGET Adjustment Budget Adj. BUDGET 126 FIRE $ 244,820 $ - $ - $ 244,820 127 LIBRARY 11,195,009 3,103,881 - 14,298,890 128 RECREATION 30,000 - - 30,000 129 POLICE 65,000 - - 65,000 130 STREETS 1,230,027 750,000 - 1,980,027 131 SANITATION 136,500 - - 136,500 132 FACILITIES MAINTENANCE - 220,000 - 220,000 133 INFORMATION TECHNOLOGY 6,400 - - 6,400 134 LOAN ISSUANCE COSTS - 30,000 - 30,000 135 EXPENSES SUBTOTAL 12,907,756 4,103,881 - 17,011,637 136 CURRENT YEAR BALANCE - LOAN PROCEEDS 1,000,000 (1,000,000) - - 137 CURRENT YEAR BALANCE 117,191 - 61,201 178,392 138 TOTAL CURRENT YEAR BALANCES AND EXPENSES $ 14,024,947 $ 3,103,881 $ 61,201 $ 17,190,029 139 The City Manager is hereby authorized, without further approval of the City Council, to make interdepartmental transfers of up 140 to five percent of the amount hereinafter appropriated to any department with the exception of any transfers prohibited by 141 City Procedure #F306.

2011-2012 BUDGET ORDINANCES - CONTINUED 142 WATER/WASTEWATER FUND 143 REVENUES AND BUDGET FOR 2011-2012 144 REVENUES 145 ORIGINAL REVISED 146 2011/12 1st Budget Proposed 2011/12 147 BUDGET Adjustment Budget Adj. BUDGET 148 BEGINNING BALANCE - WATER $ 2,385,027 $ - $ 182,145 $ 2,567,172 149 BEGINNING BALANCE - WASTEWATER 1,741,242 - 190,272 1,931,514 150 BEGINNING BALANCE - KCSA (1,757,484) - 514,241 (1,243,243) 151 TOTAL BEGINNING BALANCES 2,368,785 - 886,658 3,255,443 152 BASE REVENUE 153 WATER FEES 4,603,400 - - 4,603,400 154 WASTEWATER FEES 3,756,700 - - 3,756,700 155 WASTEWATER ADJUSTMENT FEES 3,090,900 - - 3,090,900 156 GROUNDWATER INFLOW ADJUSTMENT 1,386,900 - - 1,386,900 157 WATER TANK SPACE LEASING 307,600 - - 307,600 158 SEWER IMPACT FEES 323,000 - - 323,000 159 WATER IMPACT FEES 357,000 - - 357,000 160 INTEREST - WATER 10,600 - - 10,600 161 INTEREST - WASTEWATER 17,200 - - 17,200 162 MISCELLANEOUS SERVICE FEE 58,000 - - 58,000 163 TOTAL REVENUES 13,911,300 - - 13,911,300 164 TOTAL BEGINNING BALANCE AND REVENUES $ 16,280,085 $ - $ 886,658 $ 17,166,743 165 EXPENSE SUMMARY 166 ORIGINAL REVISED 167 2011/12 1st Budget Proposed 2011/12 168 DEPARTMENT EXPENSES BUDGET Adjustment Budget Adj. BUDGET 169 ENGINEERING AND INSPECTION $ 622,230 $ - $ - $ 622,230 170 WATER CONSTRUCTION 440,088 - - 440,088 171 WATER DEPARTMENT 382,655 - - 382,655 172 WATER TREATMENT PLANT 1,543,114 - - 1,543,114 173 WASTEWATER DEPARTMENT 959,735 - - 959,735 174 KENT COUNTY TREATMENT CHARGE 4,235,400 - - 4,235,400 175 TOTAL DEPARTMENT EXPENSES 8,183,222 - - 8,183,222 176 OTHER EXPENSES 177 DEBT SERVICE - WATER 320,853 - - 320,853 178 DEBT SERVICE - WASTEWATER 416,083 - - 416,083 179 RETIREES HEALTH CARE 190,830 - - 190,830 180 UNCOLLECTIBLES 5,000 - - 5,000 181 OPEB UNFUNDED LIABILITY - - 372,417 372,417 182 PENSION UNFUNDED LIABILITY 228,400 - - 228,400 183 INTRAFUND SERVICE FEES 1,228,596 - - 1,228,596 184 INVENTORY/FIXED ASSET WRITEOFFS 10,000 - - 10,000 185 TOTAL OTHER EXPENSES 2,399,762 - 372,417 2,772,179 186 TRANSFER TO 187 GENERAL FUND FROM WATER 238,842 - - 238,842 188 GENERAL FUND FROM WASTEWATER 185,666 - - 185,666 189 WATER IMP AND EXT 750,000 - - 750,000 190 WASTEWATER IMP AND EXT 1,000,000 - - 1,000,000 191 SEWER IMPACT FEE RESERVE - - - - 192 WATER IMPACT FEE RESERVE 36,147 - - 36,147 193 TRANSFER TO CONTINGENCY WASTEWATER 8,000 - - 8,000 194 CAPITAL ASSET RESERVE WATER 100,000 - - 100,000 195 CAPITAL ASSET RESERVE WASTEWATER 300,000 - - 300,000 196 TRANSFER TO SUBTOTAL 2,618,655 - - 2,618,655 197 CURRENT YEAR BALANCE - WATER 2,738,400 - - 2,738,400 198 CURRENT YEAR BALANCE - WASTEWATER 1,855,130 - - 1,855,130 199 CURRENT YEAR BALANCE - KCSA (1,515,084) - 514,241 (1,000,843) 200 CURRENT YEAR BALANCE SUBTOTALS 3,078,446 - 514,241 3,592,687 201 TOTAL CURRENT YEAR BALANCES AND EXPENSES $ 16,280,085 $ - $ 886,658 $ 17,166,743 202 The City Manager is hereby authorized, without further approval of the City Council, to make interdepartmental transfers of up 203 to five percent of the amount hereinafter appropriated to any department with the exception of any transfers prohibited by 204 City Procedure #F306.

2011-2012 BUDGET ORDINANCES - CONTINUED 205 WATER/WASTEWATER IMPROVEMENT & EXTENSION FUND 206 REVENUES AND BUDGET FOR 2011-2012 207 REVENUES 208 ORIGINAL REVISED 209 2011/12 1st Budget Proposed 2011/12 210 BUDGET Adjustment Budget Adj. BUDGET 211 BEGINNING BALANCE - WATER $ 1,139,872 $ - $ 397,902 $ 1,537,774 212 BEGINNING BALANCE - WASTEWATER 303,476 - 36,197 339,673 213 TOTAL BEGINNING BALANCES 1,443,348 - 434,099 1,877,447 214 REVENUES 215 STATE LOAN-WATER 2010 ISSUE - 1,923,489 - 1,923,489 216 STATE LOAN-WASTEWATER 2009 ISSUE 1,800,000 (178,728) (361,422) 1,259,850 217 STATE LOAN-WASTEWATER 2011 ISSUE - 765,060 - 765,060 218 TRANS FR WATER/WASTEWATER FOR WATER 750,000 - - 750,000 219 TRANS FR WATER/WASTEWATER FOR WASTEWATER 1,000,000 - - 1,000,000 220 TRANSFER FROM IMPACT FEE RESERVE 262,840 604,192 - 867,032 221 FEDERAL/STATE GRANTS - - 222 TOTAL REVENUES 3,812,840 3,114,013 (361,422) 6,565,431 223 TOTAL BEGINNING BALANCE AND REVENUES $ 5,256,188 $ 3,114,013 $ 72,677 $ 8,442,878 224 EXPENSE SUMMARY 225 ORIGINAL REVISED 226 2011/12 1st Budget Proposed 2011/12 227 DEPARTMENT EXPENSES BUDGET Adjustment Budget Adj. BUDGET 228 WATER $ 766,240 $ 2,320,228 $ - $ 3,086,468 229 WASTEWATER 3,404,900 813,076 - 4,217,976 230 WATER TREATMENT PLANT 22,900 - - 22,900 231 WATER CONSTRUCTION 30,100 - - 30,100 232 TOTAL DEPARTMENT EXPENSES 4,224,140 3,133,304 - 7,357,444 233 CURRENT YEAR BALANCE - WATER 1,070,632 (396,739) 397,902 1,071,795 234 CURRENT YEAR BALANCE - WASTEWATER (38,584) 377,448 (325,225) 13,639 235 TOTAL CURRENT YEAR BALANCES 1,032,048 (19,291) 72,677 1,085,434 236 TOTAL CURRENT YEAR BALANCES AND EXPENSES $ 5,256,188 $ 3,114,013 $ 72,677 $ 8,442,878 237 The City Manager is hereby authorized, without further approval of the City Council, to make interdepartmental transfers of up 238 to five percent of the amount hereinafter appropriated to any department with the exception of any transfers prohibited by 239 City Procedure #F306.

2011-2012 BUDGET ORDINANCES - CONTINUED 240 ELECTRIC UTILITY FUND 241 REVENUES AND BUDGET FOR 2011-2012 242 REVENUES 243 ORIGINAL REVISED 244 2011/12 1st Budget Proposed 2011/12 245 BUDGET Adjustment Budget Adj. BUDGET 246 BEGINNING BALANCE $ 11,867,003 $ - $ 573,547 $ 12,440,550 247 BASE REVENUES 248 DIRECT SALES TO CUSTOMERS 95,675,500 - - 95,675,500 249 PURCHASE POWER ADJUSTMENT (6,012,000) - - (6,012,000) 250 UTILITY TAX 1,966,100 - - 1,966,100 251 GREEN ENERGY 129,000 - - 129,000 252 MISCELLANEOUS REVENUE 919,000 - - 919,000 253 RENT REVENUE 225,000 - - 225,000 254 TRANSFER FROM RATE STABILIZATION 1,000,000 - - 1,000,000 255 INTRAFUND SERVICE RECEIPTS WATER/WASTEWATER 240,203 - - 240,203 256 INTEREST EARNINGS 264,900 - - 264,900 257 TOTAL REVENUES 94,407,703 - - 94,407,703 258 TOTALS $ 106,274,706 $ - $ 573,547 $ 106,848,253 259 EXPENSE SUMMARY 260 ORIGINAL REVISED 261 2011/12 1st Budget Proposed 2011/12 262 EXPENSES BUDGET Adjustment Budget Adj. BUDGET 263 POWER SUPPLY $ 42,047,430 $ - $ - $ 42,047,430 264 POWER SUPPLY MANAGEMENT 1,170,000 - - 1,170,000 265 PJM CHARGES - LOAD 15,043,396 - - 15,043,396 266 CAPACITY CHARGES 8,506,512 - - 8,506,512 267 CONTRACTUAL SERVICES 115,000 - 150,000 265,000 268 SUB-TOTAL POWER SUPPLY 66,882,338 - 150,000 67,032,338 269 PLANT OPERATIONS 5,964,817 - - 5,964,817 270 GENERATIONS FUELS 664,641 - - 664,641 271 PJM CREDITS (1,285,675) - - (1,285,675) 272 CAPACITY CREDITS (7,388,283) - - (7,388,283) 273 GENERATION SUBTOTAL (2,044,500) - - (2,044,500) 274 TOTAL EXPENSES 64,837,838 - 150,000 64,987,838 275 DIRECT EXPENDITURES 276 TRANSMISSION/DISTRIBUTION 3,162,026 - - 3,162,026 277 ELECTRICAL ENGINEERING 1,177,060 - - 1,177,060 278 ADMINISTRATION 602,715 - - 602,715 279 METER READING 215,208 - - 215,208 280 SYSTEMS OPERATIONS 473,895 - - 473,895 281 UTILITY TAX 1,966,100 - - 1,966,100 282 DIRECT EXPENDITURES SUBTOTAL 7,597,004 - - 7,597,004 283 OTHER EXPENSES 284 ALLOW FOR UNCOLLECTIBLES 150,000 - - 150,000 285 RETIREES HEALTH CARE 646,510 - - 646,510 286 TRANSFER TO PENSION UNFUNDED LIABILITY 1,110,500 - - 1,110,500 287 OPEB UNFUNDED LIABILITY 1,115,300 - 573,547 1,688,847 288 GREEN ENERGY PAYMENT TO DEMEC 129,000 - - 129,000 289 INTRAFUND SERVICE FEES 3,370,778 - - 3,370,778 290 INTEREST ON DEPOSITS 54,500 - - 54,500 291 INVENTORY WRITE OFFS 175,000 - - 175,000 292 DEBT SERVICE 3,336,800 - - 3,336,800 293 OTHER EXPENSES SUBTOTAL 10,088,388 - 573,547 10,661,935 294 TRANSFER TO 295 IMPROVEMENT AND EXTENSION 3,500,000 - - 3,500,000 296 GENERAL FUND 7,876,288 - - 7,876,288 297 DEPRECIATION RESERVE - - - - 298 RATE STABILIZATION RESERVE - - - - 299 TRANSFER TO SUBTOTAL 11,376,288 - - 11,376,288 300 CURRENT YEAR BALANCE 12,375,188 - (150,000) 12,225,188 301 TOTALS $ 106,274,706 $ - $ 573,547 $ 106,848,253 302 The City Manager is hereby authorized, without further approval of the City Council, to make interdepartmental transfers of up 303 to five percent of the amount hereinafter appropriated to any department with the exception of any transfers prohibited by 304 City Procedure #F306.

2011-2012 BUDGET ORDINANCES - CONTINUED 305 ELECTRIC UTILITY IMPROVEMENT AND EXTENSION FUND 306 REVENUES AND BUDGET FOR 2011-2012 307 REVENUES 308 ORIGINAL REVISED 309 2011/12 1st Budget Proposed 2011/12 310 BUDGET Adjustment Budget Adj. BUDGET 311 BEGINNING BALANCE $ 2,561,096 $ 87,045 $ 527,234 $ 3,175,375 312 REVENUES 313 INTEREST EARNINGS 38,400 - - 38,400 314 RECEIPT FROM DEPRECIATION RESERVE 300,000 - - 300,000 315 TRANSFER FROM INSURANCE STABILIZATION 70,730 - - 70,730 316 TRANSFER FROM ELECTRIC 3,500,000 - - 3,500,000 317 TOTAL REVENUES 3,909,130 - - 3,909,130 318 TOTALS $ 6,470,226 $ 87,045 $ 527,234 $ 7,084,505 319 EXPENSE SUMMARY 320 ORIGINAL REVISED 321 2011/12 1st Budget Proposed 2011/12 322 EXPENSES BUDGET Adjustment Budget Adj. BUDGET 323 ELECTRIC GENERATION $ 1,810,410 $ 87,045 $ - $ 1,897,455 324 TRANSMISSION AND DISTRIBUTION 648,337 - - 648,337 325 ELECTRICAL ENGINEERING 1,790,716 - - 1,790,716 326 METER READING 20,000 - - 20,000 327 TOTAL EXPENSES 4,269,463 87,045 - 4,356,508 328 CURRENT YEAR BALANCE 2,200,763 - 527,234 2,727,997 329 TOTAL CURRENT YEAR BALANCE AND EXPENSES $ 6,470,226 $ 87,045 $ 527,234 $ 7,084,505 330 The City Manager is hereby authorized, without further approval of the City Council, to make interdepartmental transfers of up 331 to five percent of the amount hereinafter appropriated to any department with the exception of any transfers prohibited by 332 City Procedure #F306.

2011-2012 BUDGET ORDINANCES - CONTINUED 333 COMMUNITY TRANSPORTATION IMPROVEMENT FUND 334 REVENUES AND BUDGET FOR 2011-2012 335 REVENUES 336 ORIGINAL REVISED 337 2011/12 1st Budget Proposed 2011/12 338 BUDGET Adjustment Budget Adj. BUDGET 339 BEGINNING BALANCE $ 312,651 $ - $ 122,509 $ 435,160 340 REVENUES 341 GRANTS REVENUE - Streets & Lincoln Park 1,900,000 - - 1,900,000 342 TRANSFER FROM GENERAL FUND 350,000 (350,000) 131,760 131,760 343 LOAN PROCEEDS - STREETS - 1,750,000 - 1,750,000 344 INTEREST INCOME 2,800 - - 2,800 345 TOTAL REVENUES 2,252,800 1,400,000 131,760 3,784,560 346 TOTAL BEGINNING BALANCE AND REVENUES $ 2,565,451 $ 1,400,000 $ 254,269 $ 4,219,720 347 EXPENSE SUMMARY 348 ORIGINAL REVISED 349 2011/12 1st Budget 2011/12 350 EXPENSES BUDGET Adjustment BUDGET 351 PROGRAM EXPENSES - STREETS $ 1,300,000 $ 875,000 $ 131,760 $ 2,306,760 352 LINCOLN PARK/CLARENCE STREET PROJECT 900,000 - - 900,000 353 TOTAL EXPENSES 2,200,000 875,000 131,760 3,206,760 354 CURRENT YEAR BALANCE - BOND PROCEEDS - 875,000 - 875,000 355 CURRENT YEAR BALANCE 365,451 (350,000) 122,509 137,960 356 TOTAL CURRENT YEAR BALANCES AND EXPENSES $ 2,565,451 $ 1,400,000 $ 254,269 $ 4,219,720 357 The City Manager is hereby authorized, without further approval of the City Council, to make interdepartmental transfers of up 358 to five percent of the amount hereinafter appropriated to any department with the exception of any transfers prohibited by 359 City Procedure #F306.