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LEGISLATIVE, FINANCE, AND ADMINISTRATION COMMITTEE AGENDA February 28, 2011 - 6:00 P.M. - Council Chambers - City Hall - City of Dover 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. Review and Recommendation - Filling Critical Positions 2. Latest Estimate (LE) for Fiscal Year 2011 Budget 3. Proposed Ordinance #2011-07 Amending Chapter 46 Fire Prevention and Protection, Article III - Fire Codes, Section 46-126 - Fire Prevention Permit 4. Review of Hospitality and Civic Function Policy 5. Adjournment by 7:00 P.M. /tm S:\AGENDAS & MINUTES\Committee-Agendas\2011\02-28-2011 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.

Memorandum Office of the City Manager PO Box 475 Dover, DE 19903 Phone: (302) 736-7005 FAX: (302) 736-7002 E-mail tdeprima@dover.de.us To: Legislative, Finance and Administration Committee From: Anthony J. DePrima, ICMA-CM, AICP City Manager Date: February 22, 2011 Subject: 2011 Latest Estimate and Joint LF&A and SA&T recommendations regarding police staffing and programs. The Latest Estimate being presented tonight was prepared before the February 17, 2011 recommendations of the Joint LF&A and SA&T Committee regarding police staffing and programs. It would not be appropriate to include those recommendations until acted on by City Council. The City Council will be acting on the Joint LF&A and SA&T recommendations on February 28th. The Joint Committee recommended that two additional officers be sent to the spring police academy class, and that a onetime $40,000 Police Chief’s Discretionary Fund be established. As I indicated at the Joint meeting those expenses can be covered by savings in this year’s budget as reflected in the Latest Estimate. In fact, no further adjustment would be necessary in the proposed police salary budget because we were just informed that the police academy class has moved to mid April. The cost of four officers in a mid April class is about the same as the budget for two officers in a February class which was originally approved by City Council. No further adjustments will be needed to the Latest Estimate for the additional two officers. The additional $40,000 is well covered in the $751,000 being added to the General Fund Balance. Assuming the City Council will approve the recommendation of the Joint Committee at its February 28th meeting, the Latest Estimate will be amended before the first reading of the budget ordinances associated with the latest estimate budget amendments.

Latest Estimate Fiscal Year 2010‐2011 Budget February 2011 Prepared by: City Manager’s Office

INTRODUCTION The purpose of this report is to give City Council the latest estimate of our Fiscal Year 2010‐ 2011 Budget, factoring in some of the known changes that have occurred since the budget was approved in July. Some of the major changes are as follows: an increase to Transfer Tax revenue estimates; decreases to Trash Revenues; revised revenues and expenses for Power Supply and Generation that positively impact the Electric Fund. These and other known changes are detailed in this report. Changes in revenue, as reported to Council in the December Quarterly Revenue Report, are included in this Latest Estimate, as well as changes made by PACE to our Electric Utility Forecast. Also detailed in this report is the impact of hiring freeze reductions and vacant positions, which include reductions in benefits. Fund Balances The General Fund balance is projected to exceed the financial policy minimum level criteria. The estimated fund balance is equal to approximately 10.3 percent of revenues or $3.7 million. It is projected to be $829,245 over the required minimum amount. The Water and Wastewater Fund balance is projected, in aggregate, to fall $7,376 below the minimum fund balance requirement of eight percent. Water is 35 percent ($1.4 million in excess) of revenues and Wastewater is 43 percent ($1.3 million in excess) of revenues. The Kent County Sewer Adjustment balance is not in compliance and currently has a $1.8 million deficit. The Electric Fund balance is in compliance with fund balance requirements. The current estimated fund level is 11 percent of revenues. The Electric Fund balance is projected to be $11.2 million, which exceeds the minimum fund balance requirements by $3.2 million. Revisions Salaries for all divisions have been adjusted. Calculations were based on year‐to‐date salary and benefit expenses, as of January 14, 2011. Pay was calculated by using the average pay period expense for the 12.5 pay periods remaining. Unfilled vacant positions were taken out of the salary calculations, so those savings are incorporated into the salary calculations. Positions approved for hire were calculated based on estimated start dates. Other revisions are outlined by fund and division. 1

GENERAL FUND Revenues Prior Year balance increased $1,034 for additional audit adjustments. Fines, Police revenue and 911 Fee revenue are adjusted up $42,387 and $15,000 respectively, based on current revenue trends. Investment Income is adjusted downward $108,000. This is reflective of actual experiences in the market, and cash balances. Permits and Other Licenses are adjusted downward $42,000, to reflect the actual revenue streams. Miscellaneous revenue is adjusted up $11,500 for Grass Cutting. There is a corresponding increase in grass cutting expense. Franchise Fees are adjusted upward $34,000 to reflect this year’s actual revenue streams. Trash fees are decreased ($194,511) due to an anticipated decrease in the out‐of‐city customers. There is a partial decrease in the tonnage charge. Interfund Service Fees were adjusted downward $48,076, based on allocated department changes. Police Grants were decreased ($58,350) based on the vacancy in the designated grant officer position. The candidate for this position will enter the police academy in March 2011 and the grant will resume again. A recreation grant was added ($51,000) to reflect a grant for the Silver Lake Watershed Coordinator. There is a corresponding expense in Parks and Recreation contractual services. Homeland security grants were added for $188,061. A Homeland Security grant, from FEMA, was added for $172,061. This grant will reimburse the Contingency Fund for Fiscal 2010 snow expenses. Another grant in the amount of $16,000, from Homeland Security, was received for enhancements to City Hall security in the City Manager/Mayor’s Office. The corresponding expense is in the Life Safety budget. Transfer Tax was increased ($750,000). This increase was based on three large receipts in December and January ‐ $633,046, $58,125, and $56,897. Civil Traffic Penalties are adjusted upward ($70,000) based on actual receipt experience for Fiscal 2011. Expenses Unless otherwise indicated, all adjustments to divisions are due to adjustments in salary. Calculations were based upon year‐to‐date salary and benefit expenses as of January 14, 2011. Pay was calculated by using average pay period expense for the 12.5 pay periods remaining. Unfilled vacant positions were taken out of the salary calculations, so those savings are incorporated into the salary calculations. Positions approved for hire were calculated based on estimated start dates. Tax Assessor – A $69,497 adjustment has been made to cover increased legal expenses regarding assessment appeals and ordinances in the amount of $88,000. The adjustment also reflects a decrease in salary and benefits of $18,503. 2

Parks & Recreation – An adjustment of $38,157 has been made. This accounts for salary savings of $12,843 and for the expense of the Silver Lake Watershed Coordinator ($51,000). There is a corresponding increase in the grant revenue which covers this expense. Life Safety – An adjustment has been made in the amount of $15,757. This is to account for salary savings of $243 and the enhanced security system in the City Manager and Mayor’s Office ($16,000). This expense is offset by a corresponding grant for $16,000. Code Enforcement – An adjustment of $18,229 has been made. This adjustment accounts for increased temporary help ($26,132) as approved by Council. This is partially offset by $12,903 in salary savings. The budget is also adjusted for additional grass cutting expense $5,000. Grass cutting revenue has been increased ($11,500) to offset the expense. Inspections – An adjustment of $65,000 has been made to cover the cost of Council approved demolitions. Streets – An adjustment of $13,530 has been made. This adjustment accounts for $25,562 in salary and benefits savings. It also accounts for an additional $20,576 for sand and salt costs associated with snow removal and $18,516 for snow plow repairs. Sanitation – An adjustment downward of $49,505 has been made. This reflects salary and benefit increases for a transferred position from Grounds ($10,281). There are offsetting salary and benefit savings in the Grounds division. The adjustment also includes reduced landfill fees of $59,786. Reduced landfill fees are the result of fewer out‐of‐city customers and a general decrease in tonnage taken to the landfill. Trash revenue has been reduced to reflect these changes. City Manager – An adjustment of $17,943 has been made. This adjustment reflects an increase of $6,743 in salary and benefits. These adjustments reflect budget corrections and a change to health insurance coverage for an employee. Legal fees were adjusted upward ($11,200) for insurance deductibles and additional legal services associated with the tax appeals. Information Technologies – A downward adjustment of $50,885 has been made. This reflects salary and benefits savings of $64,687 and an additional $13,802 to reflect an error in accounting for a prepaid charge. Finance – A reduction for $22,000 has been made. This reflects reductions in materials, supplies and administrative charges. The largest reduction of $20,600 in contractual services is due to a partial year implementation of the ADP payroll system. Fleet Maintenance – A reduction of $30,297 has been made. This reflects a reduction of $35,700 in the program expenses for vehicle repairs. This is based on actual repair experience to date. Adjustments have also been made to reflect budget corrections of $5,403 in salary and benefits. HR – A reduction of $12,500 has been made. This reflects $3,000 savings in salary, benefits and reduced consulting fees of $9,500. Transfer to Contingency – This transfers funds to the Contingency Reserve from FEMA for $172,061 to reimburse the City for snow expenses last fiscal year. Uncollectible Reserve is increased $100,000 based upon recommendations from our auditors. 3

Current Year Balance is adjusted $751,191 to reflect revisions to revenue and expenditures. Fund Balance is estimated to be equal to approximately 10.3 percent of revenues or $3.7 million. It is projected to be $829,000 over the required minimum amount. These excess funds can remain in the fund balance or be used for contributions to reserves where we do not meet reserve requirements such as; Capital Asset Reserve or OPEB contributions. It may be best to wait until the final budget to make these decisions. General Contingency Fund A receipt from FEMA for $172,061 was received to reimburse the Contingency Fund for snow expenses from last fiscal year. The General Contingency Fund is in compliance with minimum fund balance requirements. Governmental Capital Projects Fund Revenues Police Grants increased $20,000 due to an FBI grant for improvements to the Public Assembly Room. There will be a corresponding increase in expenses. Expenses Grounds decreased $17,158 to reflect vehicle purchase savings. Police – An adjustment has been made for $7,648. This adjustment reflects a $20,000 increase for improvements to the Public Assembly Room funded by a$20,000 FBI grant. The budget was also decreased $12,352 to reflect vehicle purchase savings. Streets ‐ reduced $26,579 to reflect vehicle purchase savings. Sanitation ‐ reduced $33,656 to reflect vehicle purchase savings. Information Technologies – reduced $5,000 to reflect the postponement of a server purchase. Server was postponed due to the failure of the air conditioning unit in the computer room. Replacement of the unit was $7,000. Transfer to Community Transportation Fund – $25,000 originally received to pave Susan Place was transferred to the Community Transportation Fund where the work will be charged. Current Year Balance is adjusted upward $69,745, based on revenue and expense revisions indicated above. 4

Water/Wastewater Revenues Water and Wastewater Fund balances were adjusted by $353 for additional Fiscal Year 2010 audit adjustments. The net effect of the adjustments to the Water/Wastewater fund is zero. Interest earnings for Water ($8,206) and Wastewater ($10,079) are revised upward. This is reflective of actual experiences in the market and cash balances. Expenses Unless otherwise indicated, adjustments to all Electric divisions are due to adjustments in salary. Calculations were based on year‐to‐date salary and benefit expenses as of January 14, 2011. Pay was calculated by using average pay period expense for the 12.5 pay periods remaining. Unfilled vacant positions were taken out of the salary calculations, so those savings are incorporated into the salary calculations. Positions approved for hire were calculated based upon estimated start dates. Uncollectible Reserve is increased $71,000 based upon recommendations from our auditors. Interfund Service Fees were adjusted downward $140,756 to cover changes in allocated divisions and a change to the allocation method of Electric Administration to the Water/Wastewater Fund. The Water and Wastewater Fund balance is projected, in aggregate, to fall $7,376 below the minimum fund balance requirement of eight percent. Water is 35 percent ($1.4 million in excess) of revenues and Wastewater is 43 percent ($1.3 million in excess) of revenues. The Kent County Sewer Adjustment balance is not in compliance. It is currently experiencing a $1.8 million deficit. 5

Electric Revenue Fund Revenue Direct Sales to Customers increased to coincide with PACE volume projections. The increase of $1.3 million is based on the year‐to‐date actual and future projections from PACE. Increased expenses for power supply and generation are included in the expense adjustments. Purchase Power Adjustment credit has been increased by $25,000 based on the year‐to‐date actual and future projections from PACE. Utility Tax increased $100,200 to reflect the changes in the PACE volume projections. This is offset by an increase in the Utility Tax expense. Interfund Service Receipts decreased to reflect changes in allocated divisions and a change to the allocation method of Electric Administration to the Water/Wastewater Fund. Interest Earnings were adjusted upward $44,600. This is reflective of actual experiences in the market and balances. Expenses Unless otherwise indicated, all adjustments to divisions are due to adjustments in salary. Calculations were based on year‐to‐date salary and benefit expenses as of January 14, 2011. Pay was calculated by using average pay period expenses for the 12.5 pay periods remaining. Unfilled vacant positions were taken out of the salary calculations, so those savings are incorporated into the salary calculations. Positions approved for hire were calculated based on estimated start dates. Power Supply expenses were adjusted upward by $1.8 million, due to the increased demand for power. Net generation expenses including Plant Operations were adjusted to project a decrease of $1.3 million. This was due to increased PJM credits. Plant Operations are projected to increase $469,000 which is the result of increased power production. Total Power Supply and Generation expenses are adjusted upward $465,563. These adjustments are reflected the January 31, 2011 report from PACE Global Asset Management. This increased expense is offset by the increased sales to customers of approximately $1.4 million. In Electric Administration, City Building and Maintenance supplies line item was increased $54,750. $24,750 is for work on the heating and air conditioning system at Weydant Hall (5 East Reed Street). The other $30,000 is for increased repair and maintenance at the same location. $21,430 was added to Consulting Fees for increased legal fees associated with the Ward Transformer case. $279,640 was also added to settle the Ward Transformer case, as approved by Council. Funds were transferred from the Contingency Reserve to cover these expenses. Utility Tax increased ($100,200) to reflect the changes in the PACE volume projections. The increase in expense is offset by the increase in revenue. Uncollectible Reserve increased $175,000 based on the recommendations from our auditors. Interfund Service Fees were adjusted (‐$33,445) to reflect changes to allocated divisions. Debt Service was decreased $468,810, to reflect refinancing of electric revenue bonds. Transfer to Contingency returns the $301,070 removed from the Contingency Reserve for the Ward Transformer case. The funds were not needed. 6

Current Year Balance is $1 million, based on the revenue and expense revisions indicated above. The Electric Fund balance is in compliance with policy criteria. The current estimated fund level is 11 percent of the fund balance. It is projected to be $3.2 million in excess of the minimum fund balance requirement. Electric Contingency Reserve Revenue Transfer form Electric Revenue returns the $301,070 removed from the Contingency Reserve for the Ward Transformer case. Expenses Carry Forward to next year is adjusted based on the revenue and expense revisions indicated above. Electric Improvement and Extension Fund Revenue The State reimbursement for Wyoming Mill Road ($91,000) has been added. It will cover the cost of the Wyoming Mill Road Project. Expenses Electric Engineering increased $91,000, for the Wyoming Mill Road Project. Community Transportation Improvement Fund Revenue Transfer from General Capital Projects increased $25,000 to cover the cost of paving Susan Place. Expenses Program Expenses increased $25,000 to cover the cost of paving Susan Place. 7

GENERAL FUND CASH RECEIPT SUMMARY Information Only Information Only Information Only 2010‐11 2010‐11 2010‐11 2010‐11 BUDGET PRIOR ADJMTS LATEST EST ADJMTS REVISED RECEIPTS PRIOR YEAR BALANCE $ 2,277,575 $ 376,953 $ 1,034 $ 2,655,562 FINES AND POLICE REVENUE 536,502 ‐ 42,387 578,889 911 FEE 45,000 ‐ 15,000 60,000 INVESTMENT INCOME 224,000 ‐ (108,000) 116,000 LIBRARY REVENUES 64,189 ‐ ‐ 64,189 KENT COUNTY BOOK REIMBURSEMENT 460,000 ‐ ‐ 460,000 BUSINESS LICENSES 1,523,675 ‐ ‐ 1,523,675 PERMITS AND OTHER LICENSES 934,000 ‐ (42,000) 892,000 DEMOLITION REVENUE ‐ ‐ ‐ ‐ MISCELLANEOUS CHARGES 54,250 ‐ 11,500 65,750 POLICE EXTRA DUTY 300,000 ‐ ‐ 300,000 PROPERTY TAXES 10,982,634 ‐ ‐ 10,982,634 BID REVENUE 52,692 ‐ ‐ 52,692 RECREATION REVENUE 141,500 ‐ ‐ 141,500 FRANCHISE FEE 486,000 ‐ 34,000 520,000 TRASH FEES 2,244,511 ‐ (194,511) 2,050,000 DSWA TRASH FEE REBATE 143,000 ‐ ‐ 143,000 RENT REVENUE ‐ GARRISON FARM 87,000 ‐ ‐ 87,000 COURT OF CHANCERY FEES 645,000 ‐ ‐ 645,000 RECEIPTS SUBTOTAL 21,201,528 376,953 (240,590) 21,337,891 INTERFUND SERVICE RECEIPTS INTRAFUND SERVICE RECEIPTS WATER/WASTEWATER 972,889 ‐ (14,631) 958,258 INTRAFUND SERVICE RECEIPTS ELECTRIC 3,374,945 ‐ (33,445) 3,341,500 INTERFUND SERVICE RECEIPTS SUBTOTAL 4,347,834 ‐ (48,076) 4,299,758 GRANTS: POLICE RELATED 138,350 ‐ (58,350) 80,000 CAPITAL SCHOOL DISTRICT REVENUE 73,500 ‐ ‐ 73,500 POLICE PENSION GRANT 620,000 ‐ ‐ 620,000 RECREATION GRANTS ‐ ‐ 51,000 51,000 MISC GRANT REVENUE ‐ ‐ ‐ ‐ HOMELAND SECURITY GRANT ‐ ‐ 188,061 188,061 SALE OF ASSETS ‐ ‐ ‐ ‐ GRANTS SUBTOTAL 831,850 ‐ 180,711 1,012,561 TRANSFERS FROM: TRANSFER TAX 1,000,000 (350,000) 750,000 1,400,000 MUNICIPAL STREET AID 526,843 ‐ ‐ 526,843 CIVIL TRAFFIC PENALTIES 930,000 ‐ 70,000 1,000,000 WATER/WASTEWATER ‐ ‐ ‐ ‐ ELECTRIC 8,856,000 ‐ ‐ 8,856,000 PARKLAND RESERVE ‐ ‐ ‐ ‐ LIBRARY RESERVE ‐ ‐ ‐ ‐ CAPITAL ASSET RESERVE ‐ ‐ ‐ ‐ WORKER'S COMP FUND ‐ ‐ ‐ ‐ CONTINGENCY FUND ‐ TRANSFERS FROM SUBTOTAL 11,312,843 (350,000) 820,000 11,782,843 TOTALS $ 37,694,055 $ 26,953 $ 712,045 $ 38,433,053 8

GENERAL FUND EXPENSE SUMMARY Information Only Information Only Information Only 2010‐11 2010/11 2010/11 2010‐11 BUDGET PRIOR ADJMTS LATEST EST ADJMTS REVISED DEPARTMENT EXPENSES: CITY CLERK $ 287,403 $ ‐ $ (3,035) $ 284,368 COUNCIL 130,769 ‐ ‐ 130,769 TAX ASSESSOR 197,249 ‐ 69,497 266,746 FIRE 709,862 ‐ (44,130) 665,732 GROUNDS MAINTENANCE 1,055,557 ‐ (23,668) 1,031,889 LIBRARY 1,126,227 ‐ (46,711) 1,079,516 RECREATION 778,469 ‐ 38,157 816,626 LIFE SAFETY 501,835 ‐ 15,757 517,592 CODE INFORCEMENT 276,481 300 18,229 295,010 PLANNING 423,193 (300) ‐ 422,893 INSPECTIONS 494,807 ‐ 65,000 559,807 ECONOMIC DEVELOPMENT 247,488 ‐ ‐ 247,488 POLICE 12,458,373 ‐ (222,750) 12,235,623 POLICE EXTRA DUTY 449,516 ‐ ‐ 449,516 STREETS 802,029 ‐ 13,530 815,559 SANITATION 2,347,344 ‐ (49,505) 2,297,839 CITY MANAGER 561,572 ‐ 17,943 579,515 INFORMATION TECHNOLOGY 748,214 ‐ (50,885) 697,329 FINANCE 827,169 ‐ (22,000) 805,169 PUBLIC SERVICES ‐ ADMINISTRATION 369,752 ‐ ‐ 369,752 FACILITIES MANAGEMENT 990,757 ‐ (34,925) 955,832 CENTRAL SERVICES 669,977 ‐ (13,133) 656,844 FLEET MAINTENANCE 761,929 ‐ (30,297) 731,632 CUSTOMER SERVICES 869,404 ‐ 4,219 873,623 HUMAN RESOURCES 358,890 ‐ (12,500) 346,390 MAYOR 88,341 ‐ ‐ 88,341 DEPARTMENT SUBTOTALS 28,532,607 ‐ (311,207) 28,221,400 OTHER EXPENSES: DEBT SERVICE 331,800 ‐ ‐ 331,800 TRANSFER TO CONTINGENCY ‐ ‐ 172,061 172,061 DSWA RECYCLING PROGRAM ‐ ‐ ‐ ‐ INSURANCE 600,000 ‐ ‐ 600,000 RETIREES HEALTH CARE 1,297,509 ‐ ‐ 1,297,509 RETIREES PAYMENTS ‐ ‐ ‐ ‐ PENSION UNFUNDED LIABILITY 995,000 ‐ ‐ 995,000 POLICE PENSION UNFUNDED LIABILITY 95,000 ‐ ‐ 95,000 POLICE PENSION FUND 620,000 ‐ ‐ 620,000 OPEB ‐ ‐ ‐ ‐ UNCOLLECTIBLES ‐ TRASH AND OTHER 10,000 ‐ 100,000 110,000 LOSS ON SALE OF ASSET ‐ ‐ ‐ ‐ STORM EMERGENCY ‐ ‐ ‐ STREET LIGHTS 985,000 ‐ ‐ 985,000 OTHER EXPENSE SUBTOTAL 4,934,309 ‐ 272,061 5,206,370 GRANTS IT EMERGENCY PREPAREDNESS PLAN ‐ ‐ ‐ ‐ GRANTS SUBTOTAL ‐ ‐ ‐ ‐ TRANSFERS TRANSFER TO PENSION COLA ‐ ‐ ‐ ‐ TRANSFER TO CAPITAL ASSET RESERVE ‐ ‐ ‐ ‐ TRANSFER TO CAPITAL FUND ‐ PROJECTS 1,307,839 ‐ ‐ 1,307,839 TRANSFER TO CAPITAL FUND ‐ RESERVE ‐ ‐ ‐ ‐ TRANSFER TO STREET PROGRAM ‐ ‐ ‐ TRANSFER TO PARKLAND/RECREATION RESERVE ‐ ‐ ‐ TRANSFER TO LIBRARY RESERVE ‐ ‐ ‐ TRANSFER TO CDBG FUND 6,000 ‐ ‐ 6,000 TRANSFER TO VERIZON RESERVE ‐ ‐ ‐ INVENTORY WRITE OFFS ‐ ‐ ‐ TRANSFERS SUBTOTAL 1,313,839 ‐ ‐ 1,313,839 CURRENT YEAR BALANCE 2,913,300 26,953 751,191 3,691,444 TOTALS $ 37,694,055 $ 26,953 $ 712,045 $ 38,433,053 9

GENERAL CONTINGENCY FUND CASH RECEIPTS ESTIMATE/EXPENSE SUMMARY CASH RECEIPTS ESTIMATE Information Only Information Only Information Only 2010‐11 2010/11 2010/11 2010‐11 BUDGET PRIOR ADJMTS LATEST EST ADJMTS REVISED BEGINNING BALANCE $ 394,871 $ 135,522 $ ‐ $ 530,393 INTEREST EARNINGS 23,100 ‐ ‐ 23,100 REIMBURSEMENT FROM DEMA (SNOW EMERGENCY) ‐ ‐ 172,061 172,061 TOTALS $ 417,971 $ 135,522 $ 172,061 $ 725,554 EXPENSE SUMMARY Information Only Information Only Information Only 2010‐11 2010/11 2010/11 2010‐11 BUDGET PRIOR ADJMTS LATEST EST ADJMTS REVISED TRANSFER TO GENERAL FUND $ ‐ $ ‐ $ ‐ $ ‐ TRANSFER TO OPEB ‐ ‐ ‐ ‐ TRANSFER TO LIBRARY FUND ‐ ‐ ‐ ‐ CARRY FORWARD TO NEXT YEAR 417,971 135,522 172,061 725,554 TOTALS $ 417,971 $ 135,522 $ 172,061 $ 725,554 10

GOVERNMENTAL CAPITAL PROJECTS FUND CASH RECEIPTS ESTIMATE Information Only Information Only Information Only 2010‐11 2010/11 2010/11 2010‐11 BUDGET PRIOR ADJMTS LATEST EST ADJMTS REVISED BEGINNING BALANCE ‐ PROJECTS $ 65,479 $ 162,113 $ ‐ $ 227,592 STATE GRANTS 3,343,520 888,828 ‐ 4,232,348 INTEREST EARNINGS 10,900 ‐ ‐ 10,900 INCOME FROM SALE OF ASSETS ‐ ‐ ‐ ‐ RECREATION GRANTS ‐ 34,583 ‐ 34,583 POLICE GRANTS 18,000 ‐ 20,000 38,000 HOMELAND SECURITY GRANTS ‐ ‐ ‐ ‐ LIBRARY BOND ISSUE/CONTRIBUTIONS 1,000,000 ‐ ‐ 1,000,000 TRANSFER FROM GENERAL FUND FOR PROJECTS 1,307,839 ‐ ‐ 1,307,839 TRANSFER FROM PARKLAND RESERVE (JWP CNTR) ‐ ‐ ‐ ‐ TRANSFER FROM LIBRARY RESERVE 2,343,519 20,213 ‐ 2,363,732 GIFTS/DONATIONS (RECREATION) ‐ ‐ ‐ ‐ PARKLAND RESERVE RECEIPT ‐ 36,872 ‐ 36,872 TRANSFER FROM CAPITAL ASSET RESERVE 140,000 (140,000) ‐ ‐ ‐ TOTALS $ 8,229,257 $ 1,002,609 $ 20,000 $ 9,251,866 EXPENSE SUMMARY Information Only Information Only Information Only 2010‐11 2010/11 2010/11 2010‐11 BUDGET PRIOR ADJMTS LATEST EST ADJMTS REVISED DEPARTMENT EXPENSES: CITY CLERK $ ‐ $ ‐ $ ‐ $ ‐ COUNCIL ‐ ‐ ‐ ‐ TAX ASSESSOR ‐ ‐ ‐ ‐ FIRE 288,210 (64,510) ‐ 223,700 GROUNDS MAINTENANCE 63,675 ‐ (17,158) 46,517 LIBRARY 6,687,039 943,624 ‐ 7,630,663 RECREATION 45,000 36,872 ‐ 81,872 LIFE SAFETY ‐ ‐ ‐ ‐ PLANNING ‐ ‐ ‐ ‐ INSPECTIONS ‐ ‐ ‐ ‐ ECONOMIC DEVELOPMENT ‐ ‐ ‐ ‐ POLICE 282,380 53,500 7,648 343,528 STREETS 481,055 ‐ (26,579) 454,476 SANITATION 246,075 ‐ (33,656) 212,419 CITY MANAGER ‐ ‐ ‐ ‐ INFORMATION TECHNOLOGY 12,000 ‐ (5,000) 7,000 FINANCE ‐ ‐ ‐ ‐ PUBLIC SERVICES ‐ ADMINISTRATION ‐ ‐ ‐ ‐ FACILITIES MANAGEMENT ‐ ‐ ‐ ‐ CENTRAL SERVICES ‐ ‐ ‐ ‐ FLEET MAINTENANCE ‐ ‐ ‐ ‐ CUSTOMER SERVICES ‐ ‐ ‐ ‐ HUMAN RESOURCES ‐ ‐ ‐ ‐ MAYOR 31,500 ‐ ‐ 31,500 DEPARTMENT SUBTOTAL 8,136,934 969,486 (74,745) 9,031,675 TRANSFERS TRANSFER TO CAPITAL ASSET RESERVE ‐ ‐ ‐ ‐ TRANSFER TO PARKLAND RESERVE ‐ ‐ ‐ ‐ TRANSFER TO LIBRARY RESERVE ‐ ‐ ‐ ‐ TRANSFER TO GENERAL FUND ‐ ‐ ‐ ‐ TRANSFER TO COMMUNITY TRANS. FUND 318 ‐ ‐ 25,000 25,000 TRANSFER SUBTOTAL ‐ ‐ 25,000 25,000 CURRENT YEAR BALANCE 92,323 33,123 69,745 195,191 TOTALS $ 8,229,257 $ 1,002,609 $ 20,000 $ 9,251,866 11

WATER/WASTEWATER FUND REVENUES Information Only Information Only Information Only 2010‐11 2010/11 2010/11 2010‐11 BUDGET PRIOR ADJMTS LATEST EST ADJMTS REVISED BASE REVENUE: PRIOR YEAR BALANCE ‐ WATER $ 943,545 $ 292,648 $ 353 $ 1,236,546 PRIOR YEAR BALANCE ‐ WASTEWATER 585,053 317,666 ‐ 902,719 PRIOR YEAR BALANCE ‐ KCSA (1,632,876) (239,205) (353) (1,872,434) WATER FEES 4,206,700 ‐ ‐ 4,206,700 WASTEWATER FEES 3,308,300 ‐ ‐ 3,308,300 WASTEWATER ADJUSTMENT FEES 4,275,600 ‐ ‐ 4,275,600 WATER TANK SPACE LEASING 299,400 ‐ ‐ 299,400 SEWER IMPACT FEES 323,000 ‐ ‐ 323,000 WATER IMPACT FEES 357,000 ‐ ‐ 357,000 INTEREST ‐ WATER 680 ‐ 8,206 8,886 INTEREST ‐ WASTEWATER 835 ‐ 10,079 10,914 MISCELLANEOUS SERVICE FEE 71,000 ‐ ‐ 71,000 REVENUE SUBTOTAL 12,738,237 371,109 18,285 13,127,631 GRANTS AND REIMBURSEMENTS: STATE REIMBURSEMENT ‐ ‐ ‐ ‐ GRANT REVENUE ‐ ‐ ‐ ‐ GRANTS AND REIMBURSEMENTS SUBTOTAL ‐ ‐ ‐ ‐ TRANSFERS FROM: TRANSFER FROM CAPITAL ASSET RESERVE ‐ ‐ ‐ ‐ TRANSFER FROM CONTINGENCY ‐ ‐ ‐ ‐ TRANSFERS FROM SUBTOTAL ‐ ‐ ‐ ‐ TOTALS $ 12,738,237 $ 371,109 $ 18,285 $ 13,127,631 12

WATER/WASTEWATER FUND EXPENSE SUMMARY Information Only Information Only Information Only 2010‐11 2010/11 2010/11 2010‐11 BUDGET PRIOR ADJMTS LATEST EST ADJMTS REVISED DIRECT EXPENSES: ENGINEERING & INSPECTION $ 642,878 $ ‐ $ (70,548) $ 572,330 WATER CONSTRUCTION 392,561 ‐ 8,362 400,923 WATER DEPARTMENT 412,588 ‐ (26,692) 385,896 WATER TREATMENT PLANT 1,499,857 ‐ 12,390 1,512,247 WASTEWATER DEPARTMENT 969,762 ‐ (45,852) 923,910 KENT COUNTY TREATMENT CHARGE 4,235,403 ‐ 4,235,403 DIRECT EXPENDITURE SUBTOTAL 8,153,049 ‐ (122,340) 8,030,709 OTHER EXPENSES: DEBT SERVICE ‐ WATER 246,403 ‐ ‐ 246,403 DEBT SERVICE ‐ WASTEWATER 316,198 ‐ ‐ 316,198 RETIREES HEALTH CARE 177,427 ‐ ‐ 177,427 PENSION UNFUNDED LIABILITY 372,000 ‐ ‐ 372,000 OPEB ‐ ‐ UNCOLLECTIBLES ‐ TRASH AND OTHER ‐ ‐ 71,000 71,000 INTRAFUND SERVICE FEES 1,272,331 ‐ (140,756) 1,131,575 ARBITRAGE PAYMENT 60/40 Water ‐ OTHER EXPENSES SUBTOTAL 2,384,359 ‐ (69,756) 2,314,603 TRANSFER TO: GENERAL FUND FROM WATER ‐ ‐ ‐ ‐ GENERAL FUND FROM WASTEWATER ‐ ‐ ‐ ‐ WATER IMP AND EXT 500,000 ‐ ‐ 500,000 WASTEWATER IMP AND EXT 500,000 ‐ ‐ 500,000 TRANSFER TO PENSION COLA ‐ ‐ ‐ ‐ SEWER IMPACT FEE RESERVE 6,802 ‐ ‐ 6,802 WATER IMPACT FEE RESERVE 110,597 ‐ ‐ 110,597 CAPITAL ASSET RESERVE WATER 100,000 ‐ ‐ 100,000 CAPITAL ASSET RESERVE WASTEWATER 100,000 ‐ ‐ 100,000 TRANSFER TO SUBTOTAL 1,317,399 ‐ ‐ 1,317,399 CURRENT YEAR BALANCES CURRENT YEAR BALANCE WATER 1,348,501 292,648 85,223 1,726,372 CURRENT YEAR BALANCE WASTEWATER 1,127,608 317,666 125,158 1,570,432 CURRENT YEAR BALANCE KCSA (1,592,679) (239,205) (1,831,884) CURRENT YEAR BALANCE SUBTOTALS 883,430 371,109 210,381 1,464,920 TOTALS $ 12,738,237 $ 371,109 $ 18,285 $ 13,127,631 13

ELECTRIC REVENUE FUND REVENUES Information Only Information Only Information Only 2010‐11 2010/11 2010/11 2010‐11 BUDGET PRIOR ADJMTS LATEST EST ADJMTS REVISED BASE REVENUE: PRIOR YEAR BALANCE $ 12,086,275 $ 1,451,589 $ ‐ $ 13,537,864 DIRECT SALES TO CUSTOMER 96,595,300 ‐ 1,321,906 97,917,206 PURCHASE POWER ADJUSTMENT (2,000,000) ‐ (25,000) (2,025,000) UTILITY TAX 1,864,800 ‐ 100,200 1,965,000 GREEN ENERGY 128,600 ‐ ‐ 128,600 MISCELLANEOUS REVENUE 891,200 ‐ ‐ 891,200 RENT REVENUE 186,816 ‐ ‐ 186,816 EMISSION CREDIT SALES ‐ ‐ ‐ ‐ TRANSFER FROM CONTINGENCY ‐ 301,070 ‐ 301,070 INTRAFUND SERVICE RECEIPTS WATER/WASTEWATER 299,442 ‐ (126,125) 173,317 REIMBURSEMENT OF BOND ISSUANCE COST ‐ ‐ ‐ ‐ INTEREST EARNINGS 65,700 ‐ 44,600 110,300 TOTALS $ 110,118,133 $ 1,752,659 $ 1,315,581 $ 113,186,373 14

ELECTRIC REVENUE FUND EXPENSE SUMMARY Information Only Information Only Information Only 2010‐11 2010/11 2010/11 2010‐11 BUDGET PRIOR ADJMTS LATEST EST ADJMTS REVISED EXPENSES: POWER SUPPLY $ 48,059,699 $ ‐ $ (425,336) $ 47,634,363 POWER SUPPLY MANAGEMENT 2,280,000 ‐ 41,562 2,321,562 PJM CHARGES ‐ LOAD 11,850,876 ‐ 1,512,556 13,363,432 CAPACITY CHARGES 11,618,223 ‐ 684,169 12,302,392 RATE STABILIZATION CREDIT ‐ ‐ ‐ SUB‐TOTAL POWER SUPPLY 73,808,798 ‐ 1,812,951 75,621,749 PLANT OPERATIONS 5,694,315 ‐ 469,000 6,163,315 GENERATIONS FUELS 297,820 ‐ 2,947,157 3,244,977 PJM CREDITS (720,797) ‐ (4,832,607) (5,553,404) CAPACITY CREDITS (11,488,785) ‐ 69,062 (11,419,723) GENERATION SUBTOTAL (6,217,447) ‐ (1,347,388) (7,564,835) POWER SUPPLY & GENERATION SUBTOTAL 67,591,351 ‐ 465,563 68,056,914 DIRECT EXPENDITURES TRANSMISSION/DISTRIBUTION 3,206,515 ‐ (159,371) 3,047,144 ELECTRICAL ENGINEERING 1,842,903 ‐ (87,898) 1,755,005 ADMINISTRATION 609,169 301,070 54,750 964,989 METER READING 222,908 ‐ (13,253) 209,655 SYSTEMS OPERATIONS 518,053 ‐ (25,560) 492,493 UTILITY TAX 1,864,800 ‐ 100,200 1,965,000 DIRECT EXPENDITURE SUBTOTALS 8,264,348 301,070 (131,132) 8,434,286 OTHER EXPENSES: ALLOW FOR UNCOLLECTIBLES 135,000 ‐ 175,000 310,000 RETIREES HEALTH CARE 639,110 ‐ ‐ 639,110 PENSION UNFUNDED LIABILITY 833,000 ‐ ‐ 833,000 OPEB 1,200,000 ‐ ‐ 1,200,000 GREEN ENERGY PAYMENT TO DEMEC 128,600 ‐ ‐ 128,600 INTRAFUND SERVICE FEES 3,374,945 ‐ (33,445) 3,341,500 INTEREST ON DEPOSITS 54,500 ‐ ‐ 54,500 INVENTORY WRITE OFFS 175,000 ‐ ‐ 175,000 BOND ISSUANCE COSTS ‐ ‐ ‐ ‐ POWER SUPPLY STUDY ‐ ‐ ‐ ‐ DEBT SERVICE 4,058,700 ‐ (468,810) 3,589,890 OTHER EXPENSES SUBTOTAL 10,598,855 ‐ (327,255) 10,271,600 TRANSFER TO: ‐ IMPROVEMENT & EXTENSION 3,500,000 3,500,000 GENERAL FUND 8,856,000 8,856,000 TRANSFER TO CONTINGENCY ‐ 301,070 301,070 TRANSFER TO PENSION COLA ‐ ‐ TRANSFER TO DEPRECIATION RESERVE 1,250,000 1,250,000 TRANSFER FUTURE CAPACITY ‐ ‐ RATE STABILIZATION RESERVE 1,300,000 1,300,000 TRANSFER TO SUBTOTAL 14,906,000 ‐ 301,070 15,207,070 CURRENT YEAR BALANCE 8,757,579 1,451,589 1,007,335 11,216,503 TOTALS $ 110,118,133 $ 1,752,659 $ 1,315,581 $ 113,186,373 15

ELECTRIC CONTINGENCY RESERVE ACCOUNT CASH RECEIPTS ESTIMATE Information Only Information Only Information Only 2010‐11 2010/11 2010/11 2010‐11 BUDGET PRIOR ADJMTS LATEST EST ADJMTS REVISED BEGINNING BALANCE $ 1,039,854 $ (88) $ ‐ $ 1,039,766 INTEREST EARNINGS 31,200 ‐ ‐ 31,200 TRANSFER FROM INSURANCE STABILIZATION ‐ ‐ ‐ ‐ TRANSFER FROM ELECTRIC REVENUE ‐ ‐ 301,070 301,070 TOTALS $ 1,071,054 $ (88) $ 301,070 $ 1,372,036 EXPENSE SUMMARY Information Only Information Only Information Only 2010‐11 2010/11 2010/11 2010‐11 BUDGET PRIOR ADJMTS LATEST EST ADJMTS REVISED TRANSFER TO ELECTRIC FUND $ ‐ $ 279,640 $ ‐ $ 279,640 TRANSFER TO RATE STABILIZATION FUND ‐ ‐ ‐ ‐ CARRY FORWARD TO NEXT YEAR 1,071,054 (279,728) 301,070 1,092,396 TOTALS $ 1,071,054 $ (88) $ 301,070 $ 1,372,036 16

ELECTRIC IMPROVEMENT & EXTENSION FUND CASH RECEIPTS Information Only Information Only Information Only 2010‐11 2010/11 2010/11 2010‐11 BUDGET PRIOR ADJMTS LATEST EST ADJMTS REVISED PRIOR YEAR BALANCE $ 1,688,861 $ 1,740,763 $ ‐ $ 3,429,624 PRIOR YEAR BALANCE BOND ‐ 415,585 ‐ 415,585 INTEREST EARNINGS 40,700 ‐ ‐ 40,700 INTEREST TRUSTEE ‐ ‐ ‐ ‐ INCOME FROM SALE OF ASSETS ‐ ‐ ‐ ELECTRIC NEW SERVICE FEES ‐ ‐ ‐ ‐ RECEIPT FROM DEPRECIATION RESERVE ‐ ‐ ‐ ‐ RECEIPT FROM FUTURE CAPACITY RESERVE ‐ ‐ ‐ ‐ DEMA GRANT ‐ ‐ ‐ ‐ STATE REIMBURSEMENT FOR SR1 &SR9 ‐ ‐ ‐ ‐ STATE REIMBURSEMENT FOR GOVS AVE ‐ 254,757 ‐ 254,757 STATE REIMBURSEMENT WYOMING MILL RD ‐ ‐ 91,000 91,000 STATE GRANTS ‐ ‐ ‐ ‐ FEDERAL GRANTS 135,152 ‐ 135,152 INSURANCE CLAIM PROCEEDS ‐ 280,000 ‐ 280,000 TRANSFER FROM ELECTRIC 3,500,000 ‐ ‐ 3,500,000 TOTALS $ 5,229,561 $ 2,826,257 $ 91,000 $ 8,146,818 EXPENSE SUMMARY Information Only Information Only Information Only 2010‐11 2010/11 2010/11 2010‐11 BUDGET PRIOR ADJMTS LATEST EST ADJMTS REVISED ELECTRIC GENERATION $ 1,480,068 $ 626,359 $ ‐ $ 2,106,427 TRANSMISSION AND DISTRIBUTION 739,000 ‐ ‐ 739,000 ELECTRICAL ENGINEERING 1,390,429 258,866 91,000 1,740,295 ADMINISTRATION ‐ ‐ ‐ ‐ METER READING ‐ ‐ ‐ ‐ SYSTEMS OPERATIONS ‐ ‐ ‐ ‐ TRANSFER TO DEPRECIATION RESERVE 1,000,000 ‐ 1,000,000 CURRENT YEAR BALANCE 1,620,064 941,032 ‐ 2,561,096 CURRENT YEAR BALANCE ‐BOND ‐ ‐ ‐ ‐ TOTALS $ 5,229,561 $ 2,826,257 $ 91,000 $ 8,146,818 17

COMMUNITY TRANSPORTATION IMPROVEMENT FUND OPERATING REVENUES 2010‐11 2010/11 2010/11 2010‐11 BUDGET PRIOR ADJMTS LATEST EST ADJMTS REVISED PRIOR YEAR BALANCE $ 100,913 $ ‐ $ ‐ $ 100,913 GRANTS REVENUE 1,000,000 ‐ ‐ 1,000,000 TRANSFER FROM GENERAL 300,000 ‐ 25,000 325,000 INTEREST INCOME 2,800 ‐ ‐ 2,800 ‐ TOTALS $ 1,403,713 $ ‐ $ 25,000 $ 1,428,713 OPERATING EXPENSES Information Only Information Only Information Only 2010‐11 2010/11 2010/11 2010‐11 BUDGET PRIOR ADJMTS LATEST EST ADJMTS REVISED PROGRAM EXPENSES $ 1,300,000 $ ‐ $ 25,000 $ 1,325,000 OPERATING TRANSFERS OUT ‐ ‐ ‐ ‐ ‐ CURRENT YEAR BALANCE 103,713 ‐ ‐ 103,713 TOTALS $ 1,403,713 $ ‐ $ 25,000 $ 1,428,713 18

ADJUSTMENTS BY LINE ITEM LATEST ESTIMATE FISCAL YEAR 2010‐2011 AS OF 02/28/11 Information Only Information Only Information Only Category Description 2010‐2011 2010‐2011 2010‐2011 2010‐2011 Budget Adj Bud LE Adjustment Latest Estimate GENERAL FUND REVNEUES BEG BALANCE 2,277,575 2,654,528 1,034 2,655,562 Permits and Other Licenses TRAILER LICENSES 17,000 17,000 7,000 24,000 BUILDING PERMITS 425,000 425,000 (50,000) 375,000 SPRINKLER 25,000 25,000 (7,000) 18,000 MISCELLANEOUS 25,000 25,000 3,000 28,000 492,000 492,000 (47,000) 445,000 Permits and Other Licenses VACANT BUILDING REG 10,000 10,000 5,000 15,000 10,000 10,000 5,000 15,000 Grants OTHER FED/STATE GRANTS ‐ ‐ 16,000 16,000 OP TRANS FROM 710 & 712 138,350 138,350 (58,350) 80,000 RECREATION ‐ ‐ 51,000 51,000 HOMELAND SECURITY GRANTS DEMA ‐ ‐ 172,061 172,061 OPERATING TRANS FROM 714 73,500 73,500 (73,500) ‐ 211,850 211,850 107,211 319,061 Fines and Police Revenue COURT OF COMM PLEAS FINES 80,000 80,000 (25,000) 55,000 J P COURT FINES 215,000 215,000 5,000 220,000 POLICE DEPARTMENT FINES 160,000 160,000 30,000 190,000 POLICE SPECIAL DONATIONS ‐ ‐ 14,887 14,887 BOAT LICENSES 6,500 6,500 (500) 6,000 MISCELLANEOUS 5,000 5,000 13,000 18,000 POLICE O/T SERVICE 35,000 35,000 5,000 40,000 911 FEE REVENUE 45,000 45,000 15,000 60,000 546,500 546,500 57,387 603,887 Investment Income FUND INTEREST INCOME 224,000 224,000 (108,000) 116,000 224,000 224,000 (108,000) 116,000 Transfers From OPER TSF FROM ERLSP (212) 930,000 930,000 70,000 1,000,000 OPER TSF FRM TSF TAX(214) 1,000,000 650,000 750,000 1,400,000 1,930,000 1,580,000 820,000 2,400,000 Page 1 of 13

ADJUSTMENTS BY LINE ITEM LATEST ESTIMATE FISCAL YEAR 2010‐2011 AS OF 02/28/11 Information Only Information Only Information Only Category Description 2010‐2011 2010‐2011 2010‐2011 2010‐2011 Budget Adj Bud LE Adjustment Latest Estimate Miscellaneous Charges FRANCHISE FEES 486,000 486,000 34,000 520,000 GRASS CUTTING 8,500 8,500 11,500 20,000 POLICE EXTRA DUTY 300,000 300,000 73,500 373,500 TRASH REVENUE 2,244,511 2,244,511 (194,511) 2,050,000 3,039,011 3,039,011 (75,511) 2,963,500 Interfund Service Receipts WATER/WASTEWATER 972,889 972,889 (16,480) 956,409 ELECTRIC 3,374,945 3,374,945 (37,724) 3,337,221 4,347,834 4,347,834 (54,204) 4,293,630 GENERAL FUND REVENUES 705,917 Page 2 of 13

ADJUSTMENTS BY LINE ITEM LATEST ESTIMATE FISCAL YEAR 2010‐2011 AS OF 02/28/11 Information Only Information Only Information Only Category Description 2010‐2011 2010‐2011 2010‐2011 2010‐2011 Budget Adj Bud LE Adjustment Latest Estimate GENERAL FUND EXPENDITURES City Clerk SALARIES 171,103 171,103 4,445 175,548 FICA TAXES 12,291 12,291 861 13,152 HEALTH INSURANCE 42,234 42,234 (3,285) 38,949 WORKERS COMPENSATION 894 894 36 930 EDUCATIONAL ASSISTANCE 10,000 10,000 (7,821) 2,179 PENSION 6,635 6,635 2,729 9,364 243,157 243,157 (3,035) 240,122 Tax Assessor SALARIES 125,548 125,548 830 126,378 TEMPORARY HELP 11,649 11,649 (8,479) 3,170 FICA TAXES 10,244 10,244 (396) 9,848 HEALTH INSURANCE 18,158 18,158 (166) 17,992 L I D INSURANCE 950 950 (389) 561 WORKERS COMPENSATION 863 863 (100) 763 EDUCATIONAL ASSISTANCE 10,000 10,000 (10,000) ‐ PENSION 6,764 6,764 197 6,961 LEGAL EXPENSES ‐ ‐ 88,000 88,000 184,176 184,176 69,497 253,673 Fire SALARIES 268,610 268,610 (22,472) 246,138 OVERTIME 38,365 38,365 11,432 49,797 TEMPORARY HELP 25,070 25,070 (21,343) 3,727 FICA TAXES 25,418 25,418 (2,551) 22,867 HEALTH INSURANCE 52,785 52,785 (9,196) 43,589 410,248 410,248 (44,130) 366,118 Grounds SALARIES 619,274 619,274 (20,221) 599,053 OVERTIME 17,000 17,000 17,110 34,110 FICA TAXES 48,250 48,250 (103) 48,147 HEALTH INSURANCE 150,022 150,022 (18,413) 131,609 PENSION 26,486 26,486 (2,041) 24,445 861,032 861,032 (23,668) 837,364 Page 3 of 13

ADJUSTMENTS BY LINE ITEM LATEST ESTIMATE FISCAL YEAR 2010‐2011 AS OF 02/28/11 Information Only Information Only Information Only Category Description 2010‐2011 2010‐2011 2010‐2011 2010‐2011 Budget Adj Bud LE Adjustment Latest Estimate Library SALARIES 715,592 715,592 (18,743) 696,849 FICA TAXES 53,902 53,902 (991) 52,911 HEALTH INSURANCE 119,495 119,495 (25,740) 93,755 L I D INSURANCE 3,792 3,792 200 3,992 WORKERS COMPENSATION 3,807 3,807 105 3,912 PENSION 26,916 26,916 (1,542) 25,374 923,504 923,504 (46,711) 876,793 Parks & Recreation SALARIES 356,413 356,413 (2,943) 353,470 TEMPORARY HELP 28,489 28,489 (6,160) 22,329 FICA TAXES 28,873 28,873 (451) 28,422 HEALTH INSURANCE 64,267 64,267 (3,289) 60,978 CONTRACTUAL SERVICES 114,000 114,000 51,000 165,000 592,042 592,042 38,157 630,199 Life Safety SALARIES 199,292 199,292 (3,127) 196,165 OVERTIME 10,000 10,000 ‐ 10,000 TEMPORARY HELP ‐ ‐ ‐ ‐ FICA TAXES 15,788 15,788 (44) 15,744 HEALTH INSURANCE 22,687 22,687 2,740 25,427 L I D INSURANCE 1,072 1,072 113 1,185 WORKERS COMPENSATION 1,805 1,805 457 2,262 EDUCATIONAL ASSISTANCE ‐ ‐ ‐ ‐ PENSION 10,705 10,705 (382) 10,323 SECURITY/SAFETY MATERIALS 15,400 15,400 16,000 31,400 276,749 276,749 15,757 292,506 Code Enforcement SALARIES 169,682 169,682 (5,836) 163,846 TEMPORARY HELP ‐ ‐ 24,275 24,275 FICA TAXES 12,549 12,549 1,656 14,205 HEALTH INSURANCE 50,377 50,377 (2,855) 47,522 EDUCATIONAL ASSISTANCE 3,500 3,500 (3,500) ‐ PENSION 7,270 7,270 (511) 6,759 PROGRAM EXPENSES/SUPPLIES 8,000 8,000 5,000 13,000 251,378 251,378 18,229 269,607 Inspections DEMOLITION EXPENSES 50,000 50,000 65,000 115,000 50,000 50,000 65,000 115,000 Page 4 of 13

ADJUSTMENTS BY LINE ITEM LATEST ESTIMATE FISCAL YEAR 2010‐2011 AS OF 02/28/11 Information Only Information Only Information Only Category Description 2010‐2011 2010‐2011 2010‐2011 2010‐2011 Budget Adj Bud LE Adjustment Latest Estimate Police ‐ Civilian SALARIES 1,286,327 1,286,327 (18,890) 1,267,437 OVERTIME 50,000 50,000 3,578 53,578 FICA TAXES 102,306 102,306 (1,248) 101,058 HEALTH INSURANCE 240,605 240,605 (7,036) 233,569 L I D INSURANCE 7,425 7,425 (115) 7,310 WORKERS COMPENSATION 8,723 8,723 (1,043) 7,680 EDUCATIONAL ASSISTANCE 4,200 4,200 (4,200) ‐ PENSION 55,659 55,659 12,724 68,383 1,755,245 1,755,245 (16,230) 1,739,015 Police ‐ Law Enforcement SALARIES 6,554,618 6,554,618 (276,769) 6,277,849 OVERTIME 450,000 450,000 32,402 482,402 FICA TAXES 484,941 484,941 32,218 517,159 HEALTH INSURANCE 1,014,227 1,014,227 (20,424) 993,803 L I D INSURANCE 24,888 24,888 214 25,102 WORKERS COMPENSATION 347,772 347,772 (18,679) 329,093 EDUCATIONAL ASSISTANCE 28,100 28,100 4,373 32,473 PENSION 852,082 852,082 40,145 892,227 9,756,628 9,756,628 (206,520) 9,550,108 Streets SALARIES 431,156 431,156 (20,496) 410,660 FICA TAXES 33,609 33,609 (1,116) 32,493 HEALTH INSURANCE 99,023 99,023 (3,950) 95,073 SAND AND SALT 4,000 4,000 20,576 24,576 MAINT EQUIP REPAIRS/MAIN 24,000 24,000 18,516 42,516 591,788 591,788 13,530 605,318 Sanitation SALARIES 449,699 449,699 2,621 452,320 OVERTIME 18,000 18,000 8,761 26,761 HEALTH INSURANCE 118,166 118,166 (1,101) 117,065 CONTRACTUAL SERVICES 1,442,186 1,442,186 (59,786) 1,382,400 2,028,051 2,028,051 (49,505) 1,978,546 City Manager SALARIES 347,877 347,877 1,460 349,337 FICA TAXES 23,214 23,214 2,255 25,469 HEALTH INSURANCE 38,412 38,412 2,555 40,967 PENSION 18,626 18,626 473 19,099 LEGAL EXPENSES 89,000 88,800 11,200 100,000 517,129 516,929 17,943 534,872 Page 5 of 13

ADJUSTMENTS BY LINE ITEM LATEST ESTIMATE FISCAL YEAR 2010‐2011 AS OF 02/28/11 Information Only Information Only Information Only Category Description 2010‐2011 2010‐2011 2010‐2011 2010‐2011 Budget Adj Bud LE Adjustment Latest Estimate Information Technologies SALARIES 380,390 357,890 (57,836) 300,054 FICA TAXES 25,697 25,697 (2,905) 22,792 HEALTH INSURANCE 60,316 60,316 (1,427) 58,889 L I D INSURANCE 2,219 2,219 121 2,340 WORKERS COMPENSATION 1,826 1,826 64 1,890 PENSION 16,060 16,060 (2,704) 13,356 OFF EQUIP/REPAIRS & MAINT 139,279 139,279 13,802 153,081 486,508 464,008 (50,885) 399,321 Finance SALARIES 491,495 491,495 (35,000) 456,495 TEMPORARY HELP ‐ ‐ 35,000 35,000 OFFICE SUPPLIES 2,500 2,500 (500) 2,000 PRINTING AND DUPLICATING 8,500 8,500 (500) 8,000 TELEPHONE/FAX 2,000 2,000 (300) 1,700 ADVERTISEMENT 300 300 (100) 200 CONTRACTUAL SERVICES 163,600 163,600 (20,600) 143,000 668,395 668,395 (22,000) 646,395 Facilities Maintenance SALARIES 587,035 587,035 (22,446) 564,589 TEMPORARY HELP 24,403 24,403 (4,614) 19,789 FICA TAXES 46,153 46,153 (1,764) 44,389 HEALTH INSURANCE 125,921 125,921 (4,931) 120,990 PENSION 24,642 24,642 (1,170) 23,472 808,154 808,154 (34,925) 773,229 Central Services SALARIES 249,821 249,821 3,810 253,631 FICA TAXES 18,799 18,799 516 19,315 HEALTH INSURANCE 63,797 63,797 (18,347) 45,450 WORKERS COMPENSATION 5,431 5,431 1,118 6,549 PENSION 12,431 12,431 (230) 12,201 350,279 350,279 (13,133) 337,146 Page 6 of 13

ADJUSTMENTS BY LINE ITEM LATEST ESTIMATE FISCAL YEAR 2010‐2011 AS OF 02/28/11 Information Only Information Only Information Only Category Description 2010‐2011 2010‐2011 2010‐2011 2010‐2011 Budget Adj Bud LE Adjustment Latest Estimate Fleet Maintenance SALARIES 264,010 264,010 578 264,588 OVERTIME 1,500 1,500 4,476 5,976 FICA 19,879 19,879 486 20,365 HEALTH INSURANCE 66,226 66,226 (596) 65,630 WORKMANS COMP. 10,780 10,780 194 10,974 PENSION 13,444 13,444 265 13,709 PROGRAM EXPENSES/SUPPLIES 367,700 367,700 (35,700) 332,000 743,539 743,539 (30,297) 713,242 Customer Service SALARIES 566,225 566,225 6,460 572,685 FICA TAXES 42,592 42,592 814 43,406 HEALTH INSURANCE 132,840 132,840 3,643 136,483 L I D INSURANCE 3,416 3,416 72 3,488 WORKERS COMPENSATION 3,002 3,002 31 3,033 EDUCATIONAL ASSISTANCE 11,000 11,000 (7,616) 3,384 PENSION 25,397 25,397 815 26,212 784,472 784,472 4,219 788,691 Human Resources OVERTIME 1,000 1,000 (1,000) ‐ EDUCATIONAL ASSISTANCE 6,000 6,000 (2,000) 4,000 CONSULTING FEES 9,500 9,500 (9,500) ‐ 16,500 16,500 (12,500) 4,000 Transfer to Contingency TRANSFER TO CONTINGENCY RES ‐ ‐ 172,061 172,061 Uncollectible Reserve UNCOLLECTIBLES‐TRASH&OTHR 10,000 10,000 100,000 110,000 Budget Balance BUDGET BALANCE 2,913,300 2,940,253 758,865 3,699,118 2,923,300 2,950,253 1,030,926 3,981,179 GENERAL FUND EXPENDITURES 719,719 GOVERNMENTAL CAPITAL PROJECTS FUND GENERAL CAPITAL PROJECTS REVNEUES OTHER FED/STATE GRANTS 3,361,520 4,250,348 20,000 4,270,348 3,361,520 4,250,348 20,000 4,270,348 GENERAL CAPITAL PROJECTS REVNEUES 20,000 Page 7 of 13

ADJUSTMENTS BY LINE ITEM LATEST ESTIMATE FISCAL YEAR 2010‐2011 AS OF 02/28/11 Information Only Information Only Information Only Category Description 2010‐2011 2010‐2011 2010‐2011 2010‐2011 Budget Adj Bud LE Adjustment Latest Estimate GENERAL CAPITAL PROJECTS EXPENDITURES Grounds TRUCKS ‐ PURCHASE 54,575 54,328 (17,158) 37,170 54,575 54,328 (17,158) 37,170 Police AUTOMOBILES ‐ PURCHASE 282,380 282,380 (12,352) 270,028 CONSTRUCTION ‐ PURCHASE ‐ ‐ 20,000 20,000 282,380 282,380 7,648 290,028 Streets TRUCKS ‐ PURCHASE 131,055 131,055 (26,579) 104,476 131,055 131,055 (26,579) 104,476 Sanitation TRUCKS ‐ PURCHASE 246,075 246,075 (33,656) 212,419 246,075 246,075 (33,656) 212,419 Information Technologies COMPUTER HARDWARE/CAPITAL 12,000 5,000 (5,000) ‐ 12,000 5,000 (5,000) ‐ Budget Balance BUDGET BALANCE 92,323 125,446 69,745 195,191 Trns to Comm Trans Fund TRF TO COMM TRANS FUND ‐ ‐ 25,000 25,000 92,323 125,446 94,745 220,191 GENERAL CAPITAL PROJECTS EXPENDITURES 20,000 Page 8 of 13

ADJUSTMENTS BY LINE ITEM LATEST ESTIMATE FISCAL YEAR 2010‐2011 AS OF 02/28/11 Information Only Information Only Information Only Category Description 2010‐2011 2010‐2011 2010‐2011 2010‐2011 Budget Adj Bud LE Adjustment Latest Estimate WATER/WASTEWATER FUND REVNEUES Beginning Balances BEG BALANCE 943,545 1,236,193 353 1,236,546 BEG BAL WASTEWATER 585,053 902,719 (353) 902,366 1,528,598 2,138,912 ‐ 2,138,912 Interest FUND INTEREST INCOME 1,515 1,515 18,285 19,800 1,515 1,515 18,285 19,800 WATER/WASTEWATER REVNEUES 18,285 WATER/WASTEWATER FUND EXPENSES Engineering SALARIES 427,574 427,574 (60,599) 366,975 FICA TAXES 31,821 31,821 (3,943) 27,878 HEALTH INSURANCE 75,434 75,434 (4,579) 70,855 L I D INSURANCE 2,597 2,597 (299) 2,298 WORKERS COMPENSATION 3,660 3,660 712 4,372 PENSION 17,716 17,716 (1,840) 15,876 558,802 558,802 (70,548) 488,254 Construction SALARIES 235,622 235,622 1,449 237,071 OVERTIME 5,000 5,000 5,391 10,391 FICA TAXES 17,231 17,231 1,283 18,514 HEALTH INSURANCE 65,279 65,279 (768) 64,511 WORKERS COMPENSATION 8,303 8,303 981 9,284 PENSION 8,959 8,959 26 8,985 340,394 340,394 8,362 348,756 Water SALARIES 177,153 177,153 (21,584) 155,569 OVERTIME 3,500 3,500 6,486 9,986 FICA TAXES 13,248 13,248 (750) 12,498 HEALTH INSURANCE 59,217 59,217 (10,320) 48,897 L I D INSURANCE 1,039 1,039 40 1,079 WORKERS COMPENSATION 4,221 4,221 162 4,383 PENSION 7,659 7,659 (726) 6,933 266,037 266,037 (26,692) 239,345 Page 9 of 13

ADJUSTMENTS BY LINE ITEM LATEST ESTIMATE FISCAL YEAR 2010‐2011 AS OF 02/28/11 Information Only Information Only Information Only Category Description 2010‐2011 2010‐2011 2010‐2011 2010‐2011 Budget Adj Bud LE Adjustment Latest Estimate Wastewater SALARIES 411,700 411,700 (28,255) 383,445 OVERTIME 57,500 57,500 (23,016) 34,484 FICA TAXES 30,961 30,961 671 31,632 HEALTH INSURANCE 105,851 105,851 3,148 108,999 L I D INSURANCE 2,042 2,042 40 2,082 WORKERS COMPENSATION 16,525 16,525 433 16,958 PENSION 17,529 17,529 1,127 18,656 642,108 642,108 (45,852) 596,256 Water Treatment Plant HEALTH INSURANCE 114,403 114,403 11,476 125,879 PENSION 19,989 19,989 914 20,903 134,392 134,392 12,390 146,782 Budget Balance BUDGET BALANCE 1,348,501 1,641,149 85,223 1,726,372 Bud Bal Wastewater BUDGET BAL WASTEWATER 1,127,608 1,445,274 127,007 1,572,281 Uncollectible Reserve TR TO UNCOLLECTIBLE RESRV ‐ ‐ 71,000 71,000 Interfund Service Fee INTERFUND SERVICE FEE 1,272,331 1,272,331 (142,605) 1,129,726 3,748,440 4,358,754 140,625 4,499,379 WATER/WASTEWATER FUND EXPENSES 18,285 Page 10 of 13

ADJUSTMENTS BY LINE ITEM LATEST ESTIMATE FISCAL YEAR 2010‐2011 AS OF 02/28/11 Information Only Information Only Information Only Category Description 2010‐2011 2010‐2011 2010‐2011 2010‐2011 Budget Adj Bud LE Adjustment Latest Estimate ELECTRIC FUND REVENUES Interest Earnings FUND INTEREST INCOME 65,700 65,700 44,600 110,300 65,700 65,700 44,600 110,300 Power Cost Adj FUEL/WASTE‐WATER ADJUST (2,000,000) (2,000,000) (25,000) (2,025,000) Direct Sales to Cust DIRECT SALES TO CUSTOMERS 29,143,500 29,143,500 1,321,906 30,465,406 Utility Tax STATE UTILITY TAX 1,864,800 1,864,800 100,200 1,965,000 29,008,300 29,008,300 1,397,106 30,405,406 Interfund Service Fees WATER/WASTEWATER 299,442 299,442 (126,125) 173,317 299,442 299,442 (126,125) 173,317 ELECTRIC FUND REVENUES 1,315,581 ELECTRIC FUND EXPENSES Plant Operations OVERTIME 179,816 179,816 33,000 212,816 EDUCATIONAL ASSISTANCE ‐ 5,000 (5,000) ‐ INCENTIVE ACUMULATOR 287,748 227,748 (3,600) 224,148 INCENTIVE BURDEN (21.0%) 63,362 53,362 (4,000) 49,362 BURDEN @ 40% 760,113 760,113 (30,000) 730,113 MEDICAL SUPPLIES 7,500 7,500 (4,500) 3,000 COMPUTER SOFTWARE 14,895 14,895 (7,000) 7,895 WATER/SEWER 38,000 38,000 90,000 128,000 OPERATOR INSURANCE 381,000 341,000 (25,000) 316,000 ELECTRICITY 620,000 620,000 448,000 1,068,000 HEATING OIL/GAS 50,000 50,000 (8,000) 42,000 TRAINING/CONF/FOOD/TRAVEL 45,494 45,494 (2,000) 43,494 CONTRACTUAL SERVICES 33,240 73,240 4,000 77,240 ENVIRONMENT EXPENSES 108,200 108,200 (5,000) 103,200 OPERATOR INCENTIVE 156,775 126,775 (4,500) 122,275 HOME OFFICE LABOR 98,340 98,340 (14,000) 84,340 AUXILLARY SYSTEMS 36,000 36,000 (3,000) 33,000 BOILER SYSTEMS 30,000 130,000 5,000 135,000 DCS CONTROL SYSTEM 12,000 12,000 (3,400) 8,600 COOLING TOWER 6,000 6,000 2,000 8,000 FUEL OIL/GAS SYSTEMS 4,000 4,000 (2,500) 1,500 COMBUSTION TURBINE MAINT 12,000 12,000 15,000 27,000 POWER DISTRIBUTION SYSTEM 12,000 12,000 (3,500) 8,500 TURBINE GENERATOR SYSTEMS 22,000 22,000 (3,000) 19,000 2,978,483 2,983,483 469,000 3,452,483 Page 11 of 13

ADJUSTMENTS BY LINE ITEM LATEST ESTIMATE FISCAL YEAR 2010‐2011 AS OF 02/28/11 Information Only Information Only Information Only Category Description 2010‐2011 2010‐2011 2010‐2011 2010‐2011 Budget Adj Bud LE Adjustment Latest Estimate Power Supply and Generation OPERATOR/SUPPLY MGMT FEE 2,280,000 2,280,000 41,562 2,321,562 3RD PARTY HEDGE PURCHASES 48,059,699 48,059,699 (425,336) 47,634,363 CAPACITY CHARGES 11,618,223 11,618,223 684,169 12,302,392 CAPACITY CREDITS (11,488,785) (11,488,785) 69,062 (11,419,723) PJM CHARGES 11,850,876 11,850,876 1,512,556 13,363,432 PJM CREDITS (720,797) (720,797) (4,832,607) (5,553,404) GAS FUEL 297,820 297,820 2,947,157 3,244,977 61,897,036 61,897,036 (3,437) 61,893,599 Transmission & Distribution SALARIES 1,571,677 1,571,677 (133,931) 1,437,746 OVERTIME 110,074 110,074 15,249 125,323 FICA TAXES 116,577 116,577 1,387 117,964 HEALTH INSURANCE 308,554 308,554 (39,307) 269,247 L I D INSURANCE 6,405 6,405 (23) 6,382 WORKERS COMPENSATION 64,058 64,058 (668) 63,390 PENSION 65,806 65,806 (2,078) 63,728 2,243,151 2,243,151 (159,371) 2,083,780 Engineering SALARIES 699,407 699,407 (52,219) 647,188 OVERTIME 47,320 47,320 (38,748) 8,572 FICA TAXES 52,456 52,456 (2,789) 49,667 HEALTH INSURANCE 100,514 100,514 3,064 103,578 WORKERS COMPENSATION 20,429 20,429 2,794 23,223 920,126 920,126 (87,898) 832,228 Electric Admin CITY BLDG MAINT SUPPLIES 89,694 89,694 54,750 144,444 89,694 89,694 54,750 144,444 Meter Reading SALARIES 127,495 127,495 (3,942) 123,553 OVERTIME 13,610 13,610 (7,258) 6,352 FICA TAXES 10,582 10,582 (742) 9,840 HEALTH INSURANCE 28,646 28,646 (883) 27,763 WORKERS COMPENSATION 5,699 5,699 (428) 5,271 186,032 186,032 (13,253) 172,779 Systems Operations SALARIES 348,978 348,978 (29,980) 318,998 OVERTIME 61,350 61,350 (4,940) 56,410 FICA TAXES 25,234 25,234 3,158 28,392 HEALTH INSURANCE 58,612 58,612 1,481 60,093 Page 12 of 13

ADJUSTMENTS BY LINE ITEM LATEST ESTIMATE FISCAL YEAR 2010‐2011 AS OF 02/28/11 Information Only Information Only Information Only Category Description 2010‐2011 2010‐2011 2010‐2011 2010‐2011 Budget Adj Bud LE Adjustment Latest Estimate WORKERS COMPENSATION 6,358 6,358 4,386 10,744 PENSION 14,867 14,867 335 15,202 515,399 515,399 (25,560) 489,839 Budget Balance BUDGET BALANCE 8,757,579 10,209,168 1,007,335 11,216,503 Uncollectible reserve TR TO UNCOLLECTIBLE RESRV 135,000 135,000 175,000 310,000 Utility Tax Payment UT TAX PAYMENT TO STATE 1,864,800 1,864,800 100,200 1,965,000 Debt Service FINANCIAL CHARGES 4,058,700 4,058,700 (468,810) 3,589,890 Interfund Service Fee INTERFUND SERVICE FEE 3,374,945 3,374,945 (33,445) 3,337,221 Trans. To Contingency TR TO CONTINGENCY RESERVE ‐ ‐ 301,070 301,070 18,191,024 19,642,613 1,081,350 20,719,684 ELECTRIC FUND EXPENSES TOTALS 1,315,581 ELECTRIC IMPROVEMENT AND EXTENSION FUND REVENUES State Reimbursement OTHER FED/STATE GRANTS ‐ 389,909 91,000 480,909 ‐ 389,909 91,000 480,909 ELECTRIC IMPROVEMENT AND EXTENSION FUND EXPENSES Wyoming Mill Road Project DISTRIBUTION UPGRADES 750,511 753,961 91,000 844,961 750,511 753,961 91,000 844,961 REALTY TRANSFER TAX Revenue REALTY TRANSFER TAX 1,000,000 1,000,000 400,000 1,400,000 Expense TRANSF TO GEN FUND (110) 1,000,000 1,000,000 400,000 1,400,000 COMMUNITY TRANSPORTATION IMPROVEMENT FUND REVENUE Revenue from Gen Cap Proj REV FROM GEN FUND (110) 300,000 300,000 25,000 325,000 COMMUNITY TRANSPORTATION IMPROVEMENT FUND EXPENSES CONSTRUCTION ‐ PURCHASE CONSTRUCTION ‐ PURCHASE 1,300,000 1,300,000 25,000 1,325,000 Page 13 of 13

U ACTION FORM D PROCEEDING: Legislative , Finance & Administration AGENDA ITEM: DEPARTMENT OF ORIGIN: City Manager & Public Services DATE SUBMITTED: 02/17/2011 PREPARED BY: Scott Koenig, Public Services Manager; Anthony DePrima, City Manager SUBJECT: Proposed Ordinance #2011-07 Amending Chapter 46 Fire Prevention and Protection, Article 3 – Fire Codes, Section 46-126 – Fire Prevention Permits and Amendments to Appendix F REFERENCE: N/A RELATED PROJECT: N/A APPROVALS: City Manager, Controller EXHIBITS: Proposed Ordinance #2011-07 & Amendments to Appendix F EXPENDITURE REQUIRED: $0 AMOUNT BUDGETED: $0 FUNDING SOURCE (Dept./Page in CIP & Budget): N/A TIME TIMETABLE: As soon as possible. RECOMMENDED ACTION: Adopt ordinance #2011-07 Amending Chapter 46 Fire Prevention and Protection, Article 3 – Fire Codes, Section 46-126 – Fire Prevention Permits and Amendments to Appendix F. BACKGROUND AND ANALYSIS The Delaware State Fire Prevention Regulations require periodic inspections, testing and maintenance of fire alarm signaling, fire suppression, and any other fire protection systems, devices and equipment. These inspections are to be conducted in accordance with the National Fire Protection Association’s National Fire Codes and Standards. Annual inspection, testing and maintenance is required for all fire alarm signaling, fire suppression, and any other fire protection systems, devices and equipment installed within the State of Delaware. Currently, the regulations (Delaware State Fire Prevention Regulation 703, Chapter 9.1.1) require that the Annual Certificate of Inspection and the appropriate fees be forwarded to the State Fire Marshall with the exception of systems that are located in the jurisdiction of a Jurisdictional Assistant State Fire Marshall. In those exceptions, the fees are paid to the appropriate Jurisdictional Assistant State Fire Marshall’s office. Dover, Newark, New Castle and Wilmington are considered to have Jurisdictional Assistant State Fire Marshalls. Currently, the City of Wilmington and the City of Newark require the fees to be paid to the municipality. The City of Dover and the City of New Castle do not require the fees. In an effort to develop new revenue streams, staff proposes the implementation of the fees identified in the Delaware State Fire Prevention Regulations. As such, staff has drafted the proposed amendments to the Dover Code. Staff has estimated that the new fees will capture approximately $50,000 per year in additional revenue. The proposed fees support the following Critical Success Factors identified in the Strategic Initiatives Section of the Fiscal Year 2010-2011 Annual Operating Budget: Citywide Safety and Cost and Revenue Efficiency.

CITY OF DOVER PROPOSED ORDINANCE #2011-07 1 BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE CITY OF DOVER, IN COUNCIL 2 MET: 3 That Chapter 46 Fire Prevention and Protection, Article III - Fire Codes, Section 46-126 - Fire Prevention 4 Permit, be amended by inserting the text indicated in bold, blue, italics and deleting the text indicated in red 5 strikeout as follows: 6 Sec. 46-126. Fire prevention permit. 7 (a) Required. It shall be unlawful to construct, enlarge, alter or demolish a fire protection system 8 without obtaining a fire prevention permit. 9 (b) Fee. Each applicant for a fire prevention permit, including, but not limited to, sprinkler systems, 10 fire alarms, hood suppression units, and tank installation, shall pay unto the city a permit fee as provided for 11 in Appendix F - Fees and Fines, before such permit shall be issued. 12 (c) Reinspections. There will be no charge for the first reinspection of a permit. The applicant shall 13 pay a fee for subsequent reinspections as provided for in Appendix F--Fees and Fines. 14 (d) Fire Signaling System Inspection Fee. For each inspection of a fire alarm signaling system 15 located within the jurisdiction of the City of Dover, and conducted by a licensed company pursuant to 16 Delaware State Fire Prevention Regulations the licensed company shall submit a copy of the certificate 17 of inspection for each fire alarm system to the City of Dover Fire Marshals Office, along with a 18 non-refundable fee as provided ofr in Appendix F - Fees and Fines. 19 (e) Fire Suppression System Inspection Fee. For each inspection of a fire suppression system 20 located within the jurisdiction of the City of Dover and conducted by a licensed company pursuant to 21 Delaware State Fire Prevention Regulations the licensed company shall submit a copy of the certificate 22 of inspection for each sprinkler riser to the City of Dover Fire Marshals Office, along with a 23 non-refundable fee as provided for in Appendix F - Fees and Fines. 24 (d) (f) Doubling of fees. Fees established in subsection (b) of this section shall be doubled in the 25 event that a permit is applied for after construction has commenced without the permission of the fire 26 marshal. The fire marshal shall waive the doubling of fees in cases where the permit applicant is not a 27 professional contractor and the work is not being done by a professional contractor. 28 BE IT FURTHER ORDAINED THAT: 29 Appendix F - Fees and Fines, Chapter 46 - Fire Prevention and Protection, Article III - Fire Codes, be 30 amended by inserting the text indicated in bold, blue, italics, as follows: 31 Chapter 46 - Fire Prevention and Protection, Article III - Fire Codes 32 Fees established in subsection (b) of this section shall be doubled in the event that a permit is 33 applied for after construction has commenced without the permission of the fire marshal. The fire 34 marshal shall waive the doubling of fees in cases where the permit applicant is not a professional 35 contractor and the work is not being done by a professional contractor.

Proposed Ordinance #2011-07 - Chapter 46, Article III, Section 46-126 Page 2 36 Sec. 46-126 Fire Prevention Permit $12.00 for each $1,000.00 of costs or multiple thereof of Fee; Each applicant for a fire prevention the fire protection Subsec. (b) permit system; provided that a minimum fee for each permit shall be $50.00 Subsec. (c) Reinspection 37 First reinspection No charge 38 Second reinspection $25.00 39 Third reinspection $50.00 40 Any subsequent reinspection $100.00 Subsec. (d) Fire Signaling System Inspection Fee 41 Annual Fee - Five or less $25.00 each fire buildings per complex alarm system 42 $15.00 each fire alarm system up to a maximum of twenty Annual Fee - More than Five (20) buildings. Buildings Per Complex Maximum fee per complex not to exceed $300.00 for fire alarm systems Subsec. (e) Fire Suppression System Inspection Fee 43 Annual Fee - Five or less $25.00 each fire buildings per complex suppression system 44 $15.00 each fire suppression system up to a maximum of twenty (20) Annual Fee - More than Five buildings. Buildings Per Complex Maximum fee per complex not to exceed $300.00 for fire suppression

Proposed Ordinance #2011-07 - Chapter 46, Article III, Section 46-126 Page 3 systems 45 Fines not paid within 14 days of the day the fine was issued, including the day the fine was issued, 46 shall be automatically doubled in amount. 47 48 ADOPTED: * 49 SYNOPSIS 50 Delaware State Fire Prevention regulations require periodic inspections, testing, and 51 maintenance of fire alarm signaling, fire suppression, and any other fire protection systems, 52 devices, and equipment in accordance with the National Fire Protection Association’s Fire 53 Codes and Standards. This amendment would enable the City to collect an administration 54 fee for processing the required Certificates of Inspection. 55 Actions History 56 February 23, 2011 - Schedule for Consideration by the Legislative, Finance, and Administration Committee 57 S:\ORDINANCES\2011\Draft\Ordinance 2011-07 Ch. 46, Art. III, Sec. 46-126 - Fire Prevention Permit.wpd

Office of the Mayor MEMORANDUM TO: Legislative, Finance and Administration Committee FROM: Mayor Carleton E. Carey, Sr. DATE: February 22, 2011 SUBJECT: Review of Hospitality and Civic Function Policy I would like the Legislative, Finance, and Administration Committee to review the Hospitality and Civic Function Policy. I believe there are important functions offered by the Central Delaware Chamber of Commerce and Kent County Tourism that are currently not covered under the policy. I feel the fees for these functions should be covered for Council Members to attend. Please see the list of examples: 1. The Kent County Tourism Annual Awards Dinner 2. The Central Delaware Chamber of Commerce Annual Awards Dinner 3. The Mayors Annual Prayer Breakfast 4. The Governors Annual Prayer Breakfast 5. Kent County Economic Summit These functions offer a great deal of information for the City of Dover including working relationships that add to our economic benefit.

CITY OF DOVER HOSPITALITY & CIVIC FUNCTION POLICY I. PURPOSE There are occasions when the judicious extension of hospitality in connection with official City of Dover business is in the best interests of the City of Dover, hereinafter referred to as “City.” There are also occasions where attendance at civic events and functions which are not sponsored by the City are in the best interests of the City, and thus may require attendance. This policy outlines City policy and procedures governing the manner and extent to which the City’s employees, public officials, and appointees may extend hospitality while attending civic functions and events. II. SCOPE This policy applies to all hospitality and civic function expenses incurred by the City regardless of the source of funding, and to all City employees, public officials and appointees to City Boards, Commissions and Committees. III. ALLOWABLE EXPENSES AND APPROVAL A. Allowable Expenses and Occasions Expenses for hospitality and civic functions must be directly related to, or associated with the conduct of official City business. The occasion must serve a clear City business purpose, with negligible personal benefit derived by the official host or other City employees, public officials, and appointees. In addition, the expenditure of funds for hospitality and civic functions should be cost effective and in accordance with the best use of public funds. Examples of Prohibited/Restricted Expenses: Personal Memberships Political Expenses Holiday Gatherings for non-City affiliated organizations Fundraising B. Approval of Transactions When determining whether a hospitality or civic event expense is appropriate, the approving authority must evaluate the importance of the event in terms of the costs that will be incurred, the benefits to be derived from such an expense, the availability of funds, and any alternatives that would be equally effective in accomplishing the desired objectives. C. Payment of Expenses The Finance Department shall process the payment of hospitality and civic functions expenses upon receipt of the invitation, invoice, or proper support documentation, as determined by Finance, with the signature of the Mayor, a Member of Council, and/or City Manager. Approved by Council: March 24, 2005