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EXHIBIT #1
Council Minutes of 07/10/2006
July 12, 2006
The Honorable Ruth Ann Minner
Governor, State of Delaware
Tamall Building
William Penn Street, 2nd Fi.
Dover, DE 1990}
Dear Governor Minner.
During their Regular Meeting of July 10, 2006, City Council accepted the recommendation of the Utility Commitee
to formaily request that consideration be given to adjusting the current State Utility Tax so that revenue to the Siate
is equal to last years. Inflationary power costs increases the utility tax to commercial and industrial customers
throughout the State. An adjustment in the current rate can reflect a net increase of zero from the tax revenue from
the electric rate increases throughout the State.
The consultant firm of Burns & McDonnell has provided the City with a Cost of Service Analysis that has prajected
that industrial customers can expect the largest percentage increase in the amount of utility taxes paid to the State
due to the rise in electric rates. We believe this is also true in Deimarva’s territory. As you are well aware, there
are a large number of these types af businesses within the City of Dover and we would like to provide them with
some incentive to remain. This proposed decrease in utility tax can also be used to attract additional businesses
to Delaware.
Mr. Anthony DePrima, Dover's City Manager, has been directed by Council to communicate with other
municipalities to gain support for the proposed cut in the utility tax.
On behalf of the Mayor and members of Council, we would appreciate any considerations that could be made
during the State budger review process next year.
Sincerely,
Stephen R. Speed Beverly C. Williams
Mayor Council President
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ce: Mayor and Council
Mr. DePrima, City Manager
Senator Still
Representative Stone
Representative Wagner
P.O. Box 475, Dover, DE 19903-0475
Community Excellence Through Quality Service