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LEGISLATIVE, FINANCE, AND ADMINISTRATION COMMITTEE AGENDA JANUARY 23, 2012 - 6:30 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. Proposed Resolution #2012-02 - Requesting the General Assembly to Amend Article IV - Financial Affairs, Section 50 - Debt Limit, of the City of Dover Charter (Due to time constraints, this item has been placed on the Council agenda for the meeting being held later in the evening.) 2. Proposed Ordinance #2012-03 - Related to Senior Citizen Income Exclusions (Committee Referred This Item Back to Staff on November 14, 2011.) 3. Minority Recruitment Committee Recommendations 4. Public Comment Period 5. Adjournment by 7:00 P.M. /tm S:\AGENDAS & MINUTES\Committee-Agendas\2012\01-23-2012 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 Meeting 1/23/12 AGENDA ITEM NO.: 1 DEPARTMENT OF ORIGIN: Finance DATE SUBMITTED: 01/17/12 PREPARED BY: Donna Mitchell SUBJECT: City of Dover Charter – Amendment to City Charter – Section 50 Debt Limit RELATED PROJECT: APPROVALS: City Council EXHIBITS: Council Resolution 2012 – 02 EXPENDITURE REQUIRED: N/A AMOUNT BUDGETED: FUNDING SOURCE (Dept./Page in CIP & Budget): TIMETABLE: N/A RECOMMENDED ACTION: Staff recommends approval of the change to the City of Dover Charter – Section 50, Debt Limit. BACKGROUND AND ANALYSIS The recommended change to the City of Dover debt limit is to expand and clarify the purposes for debt issuance without a referendum vote by inserting specific uses of general obligation debt which will be secured by the full faith and credit of the City. The change continues to provide a referendum requirement when the debt issuance would exceed one-fourth of one percent of the taxable assessed value of real property.

City of Dover MAYOR AND COUNCIL 1 PROPOSED COUNCIL RESOLUTION NO. 2012-02 2 BE IT RESOLVED BY THE MAYOR AND COUNCIL OF THE CITY OF DOVER, IN COUNCIL 3 MET: 4 That the Mayor and Council have determined that the Charter of the City of Dover should be 5 amended to expand and clarify the purposes for which bonds may be issued without a referendum 6 vote. Therefore, the Mayor and Council of the City of Dover respectfully request the General 7 Assembly of the State of Delaware to amend Article IV - Financial Affairs, Section 50 - Debt Limit, 8 paragraph (c) of its Charter, which amendments, if adopted by the General Assembly, would be as 9 follows: 10 CITY OF DOVER CHARTER - ARTICLE IV - FINANCIAL AFFAIRS 11 Sec. 50. - Debt limit. 12 (a) Whenever the needs of the city shall require more money than is at the time in the city 13 treasury from current receipts, the council shall be authorized and empowered to anticipate 14 current revenue by borrowing such sums as shall be needed not in excess of one percent of 15 the total taxable assessment for a general tax. The amount so borrowed shall be paid back 16 out of current revenue received thereafter. 17 To exercise the power aforesaid the council shall adopt a resolution to that effect, which 18 resolution shall require the affirmative vote of at least three-fourths of all the members of the 19 council, and the approval of the mayor. The indebtedness created under this section shall be 20 evidenced by the bond, or note, of the city, and the faith and credit of the city shall be 21 deemed to be pledged thereby. 22 (b) The mayor and council is hereby authorized and empowered to borrow from time to time on 23 the faith and credit of the City of Dover sums of money for such purposes as may be deemed 24 necessary and proper by the mayor and council of the said city which purpose shall be 25 consistent with the powers conferred upon the mayor and council of the City of Dover by the 26 Charter thereof, as amended, for the management and maintenance of the said city and for 27 these purposes the mayor and council shall have full power and authority to issue bonds of 28 the said "City of Dover." P.O. Box 475 ˜ Dover, Delaware ˜19903 Community Excellence Through Quality Service

29 The aggregate of the amounts so borrowed together with all other bonded indebtedness for 30 which the full faith and credit of the City of Dover has been pledged shall not at any time 31 exceed a sum equal to five percent of the total assessed value of real property situate within 32 the bounds of the City of Dover as such boundaries shall from time to time appear. 33 The said bonds shall be issued in one or more series, shall bear such date or dates, shall 34 mature at such time or times, shall bear interest at such rate or rates, shall be payable at such 35 time or times, and at such place or places, shall be in such denominations, and shall contain 36 such other provisions as the mayor and council may provide and shall be set forth in the said 37 bonds. Said bonds may or may not be coupon bonds and may be registered or otherwise as 38 the mayor and council deem advisable. 39 The mayor and council shall direct and effect the preparation and sale of said bonds at such 40 time or times, at such price or prices, and upon such terms as the said mayor and council 41 deem advisable, and all the monies arising from the sale of said bonds shall be used for the 42 municipal purposes of the City of Dover specified in the resolution authorizing their issue. 43 The form of said bonds and of any coupons which may be thereunto attached shall be as 44 prescribed by the mayor and council, and all such bonds shall be signed by the mayor and the 45 treasurer of the City of Dover and sealed with the corporate seal thereof. Facsimile signatures 46 of the mayor and treasurer and a facsimile of the corporate seal may be imprinted upon such 47 bonds and any coupons attached to said bonds in lieu of the signatures of the said mayor and 48 treasurer in their own handwriting and of the affixing of the corporate seal itself. 49 Said bonds of the City of Dover shall be exempt from all state, county and municipal taxes. 50 The mayor and council of the City of Dover are hereby authorized and required to levy and 51 raise by taxation in each and every year such sums of money as may be required to pay the 52 interest accrued on said bonds while all or any of said bonds remain unpaid, and the said 53 mayor and the city council are further authorized and required to levy and raise by taxation, 54 from time to time such sum or sums of money as shall be needed to establish such sinking 55 funds as the said mayor and the city council may at their discretion authorize for the 56 redemption of said bonds, or any of them, at or before their maturity and such sum or sums 57 of money as shall be required to otherwise redeem any or all or of said bonds at or before 58 their maturity. Taxes for interest and for redemption of said bonds shall be levied and raised 59 as taxes for general municipal purposes in the said city are levied and raised and shall be in 60 addition to those levied and raised for any and all other municipal purposes. 61 A statement appearing in the bonds issued under the provisions of this section to the effect 62 that the bonds have been duly authorized shall be deemed and held to be conclusive evidence 63 in favor of the lawful holder of any such bonds that the terms and conditions of this section 64 have been fully met and complied with.

65 (c) Bonds may be authorized and issued pursuant to subsection (b), without a referendum vote, 66 by a resolution of the council which shall have the affirmative vote of three-fourths of the 67 members thereof and the approval of the mayor, for the following purposes: 68 (i) To finance capital projects, including, but not limited to, public storm sewers, water 69 mains, sewer mains, streets and appurtenances public buildings provided that no 70 more than ¼ of one percent (.25%) of taxable assessed value of real property of 71 aggregate principal amount of general obligation bonds may be issued at any one 72 time pursuant to this clause and any new bonds issued pursuant to this clause may not 73 cause the total aggregate principal amount of general obligation bonds outstanding 74 at any one time to exceed one percent of the total taxable assessment for a general tax 75 at the time such new bonds are issued; and 76 (ii) To refund bonds secured by the city's full faith and credit, prior to their stated 77 maturity, provided that (A) the present value of the aggregate principal and interest 78 payments of the refunding bonds are not greater than the present value of the 79 aggregate principal and interest payments on the bonds to be refunded determined by 80 discounting at the effective interest rate on the refunding bonds, calculated based on 81 the internal rate of return: and (B) at the time of issuance of the refunding bonds there 82 are deposited in escrow, pledged to secure the refunded bonds, sufficient monies 83 and/or direct obligations of, or obligation the principal of and interest on which are 84 guaranteed by, the United States government, which, without regard to any 85 reinvestment earnings, will be sufficient to pay when due all interest, principal and 86 redemption price on the refunded bonds at maturity or upon earlier call for 87 redemption. 88 ADOPTED: * 89 S:\RESOLUTIONS & PROCLAMATIONS\2012\2012-02 Request to GA-Art IV-Financial Affairs, Sec. 50-Debt Limit.wpd 90 91 CARLETON E. CAREY, SR. THOMAS J. LEARY 92 MAYOR COUNCIL PRESIDENT 93 SYNOPSIS 94 This amendment expands and clarifies the purposes for which bonds 95 may be issued without a referendum vote. 96 Actions History: 97 January 23, 2012 - Scheduled for Consideration by City Council 98 January 23, 2012 - Scheduled for Introduction at Legislative, Finance, and Administration Committee (Due to time 99 constraints, this item will move directly to Council the same evening)

Sponsor: DELAWARE STATE SENATE 146th GENERAL ASSEMBLY SENATE BILL NO. AN ACT TO AMEND THE CHARTER OF THE CITY OF DOVER RELATED TO FINANCIAL AFFAIRS - DEBT LIMIT BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF DELAWARE (Two-thirds of all members elected to each House concurring therein): 1 Section 1. Amend Section 50 - Debt limit, of Article IV - Financial Affairs of the Charter 2 of the City of Dover by deleting the text indicated in strikeout and inserting the text indicated in 3 underscore as follows: 4 5 Sec. 50. - Debt limit. 6 7 (a) Whenever the needs of the city shall require more money than is at the time 8 in the city treasury from current receipts, the council shall be authorized and 9 empowered to anticipate current revenue by borrowing such sums as shall be 10 needed not in excess of one percent of the total taxable assessment for a 11 general tax. The amount so borrowed shall be paid back out of current 12 revenue received thereafter. 13 14 To exercise the power aforesaid the council shall adopt a resolution to that 15 effect, which resolution shall require the affirmative vote of at least 16 three-fourths of all the members of the council, and the approval of the 17 mayor. The indebtedness created under this section shall be evidenced by the 18 bond, or note, of the city, and the faith and credit of the city shall be deemed 19 to be pledged thereby. 20 21 (b) The mayor and council is hereby authorized and empowered to borrow from 22 time to time on the faith and credit of the City of Dover sums of money for 23 such purposes as may be deemed necessary and proper by the mayor and 24 council of the said city which purpose shall be consistent with the powers 25 conferred upon the mayor and council of the City of Dover by the Charter 26 thereof, as amended, for the management and maintenance of the said city 27 and for these purposes the mayor and council shall have full power and 28 authority to issue bonds of the said "City of Dover." 29 30 The aggregate of the amounts so borrowed together with all other bonded 31 indebtedness for which the full faith and credit of the City of Dover has been 32 pledged shall not at any time exceed a sum equal to five percent of the total 33 assessed value of real property situate within the bounds of the City of Dover 34 as such boundaries shall from time to time appear.

35 The said bonds shall be issued in one or more series, shall bear such date or 36 dates, shall mature at such time or times, shall bear interest at such rate or 37 rates, shall be payable at such time or times, and at such place or places, shall 38 be in such denominations, and shall contain such other provisions as the 39 mayor and council may provide and shall be set forth in the said bonds. Said 40 bonds may or may not be coupon bonds and may be registered or otherwise 41 as the mayor and council deem advisable. 42 43 The mayor and council shall direct and effect the preparation and sale of said 44 bonds at such time or times, at such price or prices, and upon such terms as 45 the said mayor and council deem advisable, and all the monies arising from 46 the sale of said bonds shall be used for the municipal purposes of the City of 47 Dover specified in the resolution authorizing their issue. 48 49 The form of said bonds and of any coupons which may be thereunto attached 50 shall be as prescribed by the mayor and council, and all such bonds shall be 51 signed by the mayor and the treasurer of the City of Dover and sealed with 52 the corporate seal thereof. Facsimile signatures of the mayor and treasurer 53 and a facsimile of the corporate seal may be imprinted upon such bonds and 54 any coupons attached to said bonds in lieu of the signatures of the said mayor 55 and treasurer in their own handwriting and of the affixing of the corporate 56 seal itself. 57 58 Said bonds of the City of Dover shall be exempt from all state, county and 59 municipal taxes. 60 61 The mayor and council of the City of Dover are hereby authorized and 62 required to levy and raise by taxation in each and every year such sums of 63 money as may be required to pay the interest accrued on said bonds while all 64 or any of said bonds remain unpaid, and the said mayor and the city council 65 are further authorized and required to levy and raise by taxation, from time 66 to time such sum or sums of money as shall be needed to establish such 67 sinking funds as the said mayor and the city council may at their discretion 68 authorize for the redemption of said bonds, or any of them, at or before their 69 maturity and such sum or sums of money as shall be required to otherwise 70 redeem any or all or of said bonds at or before their maturity. Taxes for 71 interest and for redemption of said bonds shall be levied and raised as taxes 72 for general municipal purposes in the said city are levied and raised and shall 73 be in addition to those levied and raised for any and all other municipal 74 purposes. 75 76 A statement appearing in the bonds issued under the provisions of this section 77 to the effect that the bonds have been duly authorized shall be deemed and 78 held to be conclusive evidence in favor of the lawful holder of any such 79 bonds that the terms and conditions of this section have been fully met and 80 complied with. 81 82

83 (c) Bonds may be authorized and issued pursuant to subsection (b), without a 84 referendum vote, by a resolution of the council which shall have the 85 affirmative vote of three-fourths of the members thereof and the approval of 86 the mayor, for the following purposes: 87 88 (i) To finance capital projects, including, but not limited to, public storm 89 sewers, water mains, sewer mains, streets and appurtenances public 90 buildings provided that no more than ¼ of one percent (.25%) of 91 taxable assessed value of real property of aggregate principal amount 92 of general obligation bonds may be issued at any one time pursuant 93 to this clause and any new bonds issued pursuant to this clause may 94 not cause the total aggregate principal amount of general obligation 95 bonds outstanding at any one time to exceed one percent of the total 96 taxable assessment for a general tax at the time such new bonds are 97 issued; and 98 99 (ii) To refund bonds secured by the city's full faith and credit, prior to 100 their stated maturity, provided that (A) the present value of the 101 aggregate principal and interest payments of the refunding bonds are 102 not greater than the present value of the aggregate principal and 103 interest payments on the bonds to be refunded determined by 104 discounting at the effective interest rate on the refunding bonds, 105 calculated based on the internal rate of return: and (B) at the time of 106 issuance of the refunding bonds there are deposited in escrow, 107 pledged to secure the refunded bonds, sufficient monies and/or direct 108 obligations of, or obligation the principal of and interest on which are 109 guaranteed by, the United States government, which, without regard 110 to any reinvestment earnings, will be sufficient to pay when due all 111 interest, principal and redemption price on the refunded bonds at 112 maturity or upon earlier call for redemption. 113 114 115 SYNOPSIS 116 This act would expand and clarify the purposes for which bonds may be issued 117 without a referendum vote.

ACTION FORM PROCEEDING: Legislative, Finance, and Administration Committee AGENDA ITEM NO.: DEPARTMENT OF ORIGIN: Assessor’s Office DATE SUBMITTED: 1/23/2012 PREPARED BY: Cheryl Russell, Assessor SUBJECT: Proposed Amendment to Chapter 102 – Taxation, Section 102-183 – Qualifications, Exclusion from Income, of the Dover Code REFERENCE: Senior Citizen Property Tax Abatement Discussion 11/14/2011 RELATED PROJECT: APPROVALS: Council EXHIBITS: 1. Draft Ordinance 2. Michael Smith Email 3. Background and Analysis from 11/14/2011 CAF EXPENDITURE REQUIRED: N/A AMOUNT BUDGETED: N/A FUNDING SOURCE (Dept./Page in CIP & Budget): N/A TIMETABLE: Upon Council Approval RECOMMENDED ACTION: Staff recommends amending ordinance 102-183 (b)(3) to update the language to specify Civil Service Retirement System (CSRS) as the type of Civil Service Retirement to be excluded and also to strike out the dollar amount for the maximum amount allowed for the deduction from income. BACKGROUND AND ANALYSIS The senior Citizen Tax Abatement qualifications section (b) Exclusions to Income; currently consists of: 1. Social Security benefits 2. Railroad Pensions 3. Federal Civil Service Retirement (150% of current Social Security Limit) The Federal Civil Service Retirement was added a few years ago because it was similar to Social Security (as is the Railroad Pension). Those retirees that are under the “old” CSRS plan did not contribute to Social Security and do not receive this benefit from that employment; therefore this was added to the exclusion of income for the City of Dover Senior Citizen Tax Reduction Program. It has come to our attention that the “new” FERS plan for Civil Service Retirement did contribute to Social Security and receives both social security and pension from this employment; therefore this particular plan should not be added to the exclusion for the City of Dover Senior Citizen Tax Reduction Program. The intent to add Civil Service Retirement weighed heavily on the fact that the retirees do not receive a social security benefit. The amendment to the ordinance specifies that the third exclusion to income be CSRS ONLY. Military Pension Staff does not recommend that Military Pension be added to Section (b) Exclusions to Income, because this retirement plan also contributed to Social Security. This would allow Military Retirees the ability to exclude social security and military pension from their adjusted gross income. (similar to the FERS plan) The revenue impact of adding Military Pension to the Exclusion to Income qualification could not be determined. The census bureau does not differentiate military pensions and was not able to assist us. Income Cap The idea of putting a basic cap on the income limit with no exclusions was reviewed. The only “pro” to this is that there would be no determination needed for exclusions of different plans. The “cons” that we could anticipate are: 1. Complicating the application process; requiring more documentation for seniors with Social Security income only. (195 applicants) 2. Discontinuation of abatement for seniors turning 65when they begin to draw Social Security benefits 3. Not consistent with the County income qualifications

Military Disability/Disability Income Staff reviewed the possibility of adding income directly related to disability to the exclusion to income qualification. Kent County offers this deduction from the Adjusted Gross Income. However, Kent County has an income limit qualification on their Disability Reduction; similar to their senior citizen reduction. Kent County also requires that once the property owner is 65 years of age, they are required to apply for Senior Citizen reduction and no longer qualify for the disability reduction. Kent County did not explain the reasoning behind the deduction of the income related to disability; we can only assume it has something to do with the transfer of reduction from Disability to senior citizen at the age of 65. The revenue impact of adding Income Related to Disability could not be determined. Since Kent County transfers the property owner to the Senior Citizen Reduction Program, they do not have the number of property owners that qualify or are considered disabled within the City of Dover limits. Currently, the City of Dover does not have age limitation or income limitations for the disability reduction. The only requirement is that they are 100% disabled as determined by the Social Security Administration and must provide an award letter from SSA each year upon application. New Castle County and Sussex County have income limitations for the disability reduction plan; however they do not deduct income related to disability. They also transfer the property owner to senior citizen when they turn 65 years of age. Staff does not recommend deducting income directly related to disability at this time.

CITY OF DOVER PROPOSED ORDINANCE #2012-03 1 BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE CITY OF DOVER, IN COUNCIL 2 MET: 3 That Chapter 102 - Taxation, Article VI - Exemptions; Board of Assessment Appeals, Section 102-183 - Tax 4 Exemption for Senior Citizens, be amended by inserting the text indicated in bold, blue, italics and deleting 5 the text indicated in red strikeout as follows: 6 Sec. 102-183. - Tax exemption for senior citizens. 7 (a) Authority. This section is adopted to implement 22 Del. C. § 1001 et seq., granting exemptions from 8 municipal taxation on real property for persons 65 years of age or over. Compliance must be made 9 with such chapter 10 and this section in order to qualify for such exemption. 10 (b) Qualifications. The exemption shall be for real property owners 60 years of age or over. If qualified, 11 their real property shall be exempt from municipal taxation to the extent of the first $50,000.00 of 12 assessed valuation. This exemption shall be subject to the following: 13 (1) Owner resides alone. If the income of a property owner who resides alone exceeds the sum of 14 $15,851.00 (2008) for the income tax year immediately preceding the date of making an 15 application for the exemption, then the exemption shall not be granted. The maximum income 16 limit stated in the preceding sentence shall increase each year by the same percentage as the cost 17 of living adjustment granted to recipients of Social Security retirement benefits. 18 (2) Spouses reside together. If the income of a property owner and spouse who reside together 19 exceeds the sum of $22,192.00 (2008) for the income tax year immediately preceding the date 20 of making an application for the exemption, then the exemption shall not be granted. The 21 maximum income limit stated in the preceding sentence shall increase each year by the same 22 percentage as the cost of living adjustment granted to recipients of Social Security retirement 23 benefits. 24 (3) Exclusion from income. In computing income of the property owner in order to determine 25 entitlement for the deduction, Social Security benefits; railroad pensions and federal civil 26 service retirement Civil Service Retirement System (CSRS) (not to exceed the sum of 27 $35,190.00 (2010)— up to 150 percent of the Social Security maximum benefit. The civil 28 service retirement income exclusion shall be based each year on the maximum Social 29 Security benefit at 150 percent), shall not be considered as income. 30 (4) Location, use of property. The real property must be located within the limits of the city and 31 must be used exclusively for residential purposes. 32 (5) Residence. The real property must be the legal residence of, and be occupied in whole or in part 33 by, the property owner.

Proposed Ordinance #2012-03 - Chpt 102-Taxation, Art. 6-Exemptions Page 2 34 (6) Owner of record. The property owner must be the owner of record of said real property as of 35 December 31 of the calendar year immediately preceding the date of making application for the 36 exemption. 37 (7) Time when age attained. The property owner must have attained the age of 60 years by March 38 1 of the year in which the exemption application is filed. 39 (8) Filing applications. Applications for exemption shall be filed in accordance with regulations 40 adopted by the city council and for cause shown. The city assessor may accept and act upon 41 applications received after any established application filing date. 42 (9) Refund. The city assessor is empowered to refund taxes paid by a qualified applicant who is 43 entitled to an exemption and successfully files for the same. 44 (10) Evidence. The city assessor's office shall be authorized to require any applicant to submit 45 evidence substantiating income reported for receipt of the exemption. The city assessor may deny 46 applications where requested income verification is not submitted by the applicant. 47 (11) Denial; appeals. Appeals from denial of exemptions by the city assessor and any other 48 complaints regarding the exemption process may be appealed by the taxpayer directly to the 49 board of assessment appeals The board of assessment appeals shall have the power to affirm, 50 overrule or remand the decision of the city assessor. 51 (12) Interest; retroactive exemptions. Qualified senior citizens who fail to exercise their property tax 52 exemption shall not be entitled to any interest payments on said exemption amount; nor shall 53 unexercised property tax exemptions be retroactive beyond the current tax year. 54 (13) Penalties. Penalties assessed to delinquent property tax accounts that are eligible for a senior 55 citizen exemption that has not been exercised shall not be excused. 56 (14) Council review. City council will review these numbers at the conclusion of each reassessment. 57 ADOPTED: * 58 S:\ORDINANCES\2012\Draft\2012-03 - Chpt 102 - Taxation, Art. VI-Senior Citizen Exemption.wpd 59 SYNOPSIS 60 This amendment replaces the language “federal civil service retirement” with the current 61 “Civil Service Retirement System (CSRS)” and changes the computation of the property 62 owner’s entitlement for the deduction from a dollar amount to a percentage of the Social 63 Security maximum benefit. 64 Actions History 65 January 23, 2012 - Scheduled for Review by the Legislative, Finance, and Administration Committee

Hart, Annette From: MICHAEL SMITH <thoy1@msn.com> Sent: Monday, October 17, 2011 5:50 PM To: Hart, Annette Subject: senior tax reduction my name is michael l smith, i live at 208 saxondale ln in dover. i'm writng you about my visit to your office and you informed me that my wife and i are NOT entitled to the tax reduction because being retired military is not a federal retirement. you said the city of dover tax assessers office ONLY considers federal retiree's who draw an annuity from the federal gov. i gave you a couple of letters showing you that the method you are using is out of date, and in fact changed 24 years ago. with this in mind i'm asking the tax office to RECONSIDER allowing military retirement to be EXEMPT as salary as federal workers salary is. the current federal worker PAYS SOCIAL SECURITY just as the military does. thank you for giving our request consideration. michael l smith 1

BACKGROUND AND ANALYSIS 11/14/2011 Mr. Smith visited our office and requested that we include military pension as an exclusion to income. We requested that he send a letter to be forwarded to the City Council. There was an Ad Hoc Committee formed in October 2007 to discuss any amendments to this program. The changes made consisted of: adding Federal Civil Service Retirement and increasing the income levels yearly based on COLA. A cap on the Federal Civil Service Retirement was added at a later date. The addition of the Federal Civil Service was based on the fact that this retirement plan was similar to Social Security. The retirees that benefit from this program did not pay into Social Security and do not receive this benefit from that employment. The three exclusions from the income limits are all based on Social Security and “like” programs. The idea of adding the Military Pension as an exclusion to income was brought up at the meetings. There was a short discussion and no action was taken. Military Pension was not considered similar to the Social Security or Social Security “like” programs that were excluded from the Income Limits. Also mentioned was the fact that military personnel also received Social Security Benefits. Mr. Smith states that the Federal Civil Service method is out of date and changed 24 years ago. To date we have approximately 40 senior citizens who are on our mailing list that receive an application each year to return to this office who are receiving Federal Civil Service Retirement. Of these 40 Senior Citizens, 28 receive the tax exemption. This exclusion was added to this program because of the similarity to Social Security. From what we understand now, the CSRS (Civil Service Retirement System) is the “old” retirement plan and there are no contributions to Social Security. The “new” retirement plan is FERS (Federal Employee Retirement System), which is a retirement plan and Social Security is contributed. Mr. Smith does have a valid point, that there is another Federal Civil Service Retirement Plan, which would not fall into the Intent of the Income Exclusion. This is not identified in our ordinance. The Assessor’s Office requests that this item be placed on a future Legislative and Finance Committee Meeting for an amendment, to define that the Federal Civil Service Retirement exclusion be CSRS (Civil Service Retirement System). We have verified that the senior citizens enjoying this benefit that have the Federal Civil Service Retirement did in fact have CSRS.

ACTION FORM PROCEEDING: Legislative, Finance and Administration Committee DEPARTMENT OF ORIGIN: City Manager’s Office DATE SUBMITTED: 01-18-2012 PREPARED BY: Scott D. Koenig, P.E., City Manager SUBJECT: Minority Recruitment Committee Recommendations REFERENCE: RELATED PROJECT: N/A REVIEWED BY: EXHIBITS: Exhibit A - Minority Recruitment Committee (MRC) Report TIME TIMETABLE: Undetermined at this time. RECOMMENDED ACTION: Staff recommends the acceptance of the report and requests the recommendations be referred to staff for implementation at the appropriate time. BACKGROUND AND ANALYSIS The Minority Recruitment Committee (MRC) was commissioned by the former City Manager to develop recommendations to improve minority hiring with the City of Dover. The committee held a series of meetings in 2011 and concluded their work in August 2011. The attached report reflects the result of deliberations and recommendations of the committee members.