CCW Packet REVISED

CITY OF DOVER, DELAWARE COUNCIL COMMITTEE OF THE WHOLE MEETING Tuesday, April 08, 2025 at 6:00 PM City Hall Council Chambers, 15 Loockerman Plaza, Dover, Delaware AGENDA Public comments are welcomed on any item and will be permitted at the appropriate time. When possible, please notify the City Clerk (302-736-7008 or email at cityclerk@dover.de.us) should you wish to be recognized. THIS AGENDA AND PACKET HAVE BEEN REVISED BY ADDING THE PARKS, RECREATION, AND COMMUNITY ENHANCEMENT COMMITTEE MEETING ITEM #2 – UPDATE – CITY OF DOVER ARPA GRANT SUB-RECIPIENT FUNDING VIRTUAL MEETING NOTICE This meeting will be held in City Hall Council Chambers with electronic access via WebEx. Public participation information is as follows: Dial: 1-650-479-3208 Link: https://rb.gy/jprafw Event number: 2538 080 1528 Event password: DOVER (if needed) If you are new to WebEx, get the app now at https://www.webex.com/ to be ready when the meeting starts. CALL COUNCIL COMMITTEE OF THE WHOLE MEETING TO ORDER ADOPTION OF AGENDA COUNCIL REPORTS - MARCH 2025 1. First District 2. Second District 3. Third District 4. Fourth District 5. At-Large 1

COUNCIL COMMITTEE OF THE WHOLE MEETING - April 08, 2025 PAGE 2 6. Council President Anderson PARKS, RECREATION, AND COMMUNITY ENHANCEMENT COMMITTEE ADOPTION OF THE AGENDA 1. Community Development Block Grant (CDBG) Proposed Grant Recommendations for the Fiscal Year 2025 Action Plan and Draft 2025-2029 Consolidated Plan (Tracey Harvey, CDBG Program Manager) (Staff Recommendation: Approval of the 2025-2029 Consolidated Plan and the Fiscal Year 2025 Action Plan contingent upon an allocation received from HUD and the continuation of the Community Development Block Grant) 2. Update - City of Dover ARPA Grant Sub-Recipient Funding (Tracey, CDBG Program Manager) ADJOURNMENT OF THE PARKS, RECREATION, AND COMMUNITY ENHANCEMENT COMMITTEE MEETING LEGISLATIVE, FINANCE, AND ADMINISTRATION COMMITTEE ADOPTION OF THE AGENDA 1. Proposed Ordinance #2025-05 - Amending Chapter 98, Sec. 98-5 - Duty of Tenants or Owners to Maintain Sidewalks and Landscaped Areas Within the Street Right-of-way (Eddie Kopp, Chief Code Enforcement Officer, and Sharon Duca, Assistant City Manager) (Staff Recommendation: That the committee approve Proposed Ordinance #2025-05 with either Option A or Option B identified and forward it to council for approval) 2. Proposed Ordinance #2025-06 - Amending Chapter 1 - General Provision by Adding Sec. 1-18. Code Board of Appeals (Eddie Kopp, Chief Code Enforcement Officer, and Sharon Duca, Assistant City Manager) (Staff Recommendation: That the committee approve Proposed Ordinance #2025-06 and forward it to council for approval) 3. Fiscal Year 2023 Annual Comprehensive Financial Report (ACFR) and Findings (Patricia Marney, Controller/Treasurer) (Committee Action Not Required) 4. Proposed Ordinance #2025-04 - Amending Chapter 70 - Miscellaneous Provisions, Section 70-7. - Registered Sexual Offenders (Councilman Boggerty and Council President Anderson) (Recommendation: Forward Proposed Ordinance #2025-04 to council for approval) 2

COUNCIL COMMITTEE OF THE WHOLE MEETING - April 08, 2025 PAGE 3 5. Dover Strong Fund (Council President Anderson) (Recommendation: Refer to staff to develop the appropriate policy criteria and incorporate into the budget proposal from the utility funds, not to exceed $75,000) ADJOURNMENT OF THE LEGISLATIVE, FINANCE, AND ADMINISTRATION COMMITTEE MEETING ADJOURNMENT OF THE COUNCIL COMMITTEE OF THE WHOLE THE AGENDA ITEMS AS LISTED MAY NOT BE CONSIDERED IN SEQUENCE. PURSUANT TO 29 DEL. C. §10004(e)(2), THIS AGENDA IS SUBJECT TO CHANGE TO INCLUDE THE ADDITION OR THE DELETION OF ITEMS, INCLUDING EXECUTIVE SESSIONS, WHICH ARISE AT THE TIME OF THE MEETING 3

Item 1. ACTION FORM PROCEEDING: Council Committee of The Whole (Parks, Recreation & Community Enhancement) DEPARTMENT OF ORIGIN: Planning & Community Development DATE SUBMITTED:3/25/25 PREPARED BY: Tracey Harvey SUBJECT: Community Development Block Grant (CDBG) proposed grant recommendations for the FY25 Acton Plan and the Draft 2025-2029 Consolidated Plan REFERENCE: N/A RELATED PROJECT: N/A REVIEWED BY: N/A EXHIBITS: Proposed budget for the FY25 CDBG grant recommendations and Draft 2025-2029 Consolidated Plan EXPENDITURE REQUIRED: $318,000 AMOUNT BUDGETED: $318,000 FUNDING SOURCE (Dept./Page in CIP & Budget): CDBG Entitlement Grant TIME TIMETABLE: Pending Council approval, CDBG grant agreements will be prepared for execution and initiation of projects effective 7/1/25 pending grant allocation received from HUD. RECOMMENDED ACTION: Staff recommends approval of the 2025-2029 Consolidated Plan and FY25 Action Plan contingent upon an allocation received from HUD and the continuation of the Community Development Block Grant. BACKGROUND AND ANALYSIS The development of the Consolidated Plan involved the coordination of the local housing authority, local housing providers, and various state and county agencies within the State of Delaware to consult on topics regarding homelessness, affordable housing needs, services for children, and persons with disabilities. Community Development staff met with the Community Development Advisory Committee (CDAC) on March 20, 2025 for the review and recommendations for the multi-year 2025-2029 CDBG grant applications and the proposed FY25 Action Plan budget. The proposed grant allocation for fiscal year 2025 is being estimated due to the allocation notice from the Department of Housing and Urban Development not received at this time. Staff have estimated the proposed budget at $318,000, which includes $18,000 in Program Income already received. Up to twenty percent (20%) of the grant will be used for program administration to manage the CDBG program and up to fifteen percent (15%) of the grant will be applied towards public service activities not to exceed $47,700. Staff is requesting to include a contingency provision in its Action Plan to adjust the proposed budget from the estimated funding levels to match the actual allocation amounts as close to the proposed budget as possible to eliminate the need for additional publications and the citizen participation process to submit the final plan to HUD by May 15, 2024. Adjustments will be made to the Homeownership Assistance Program with either an increase or decreased amount to total the actual allocation. Adjustments will only be made to public service activities if the 15% cap is lower than $47,700. 4

Item 1. The following activities are projects to be funded with proposed recommended funding allocations by the Community Development Advisory Committee. Homeownership Assistance Program The city will provide settlement assistance for up to $20,000.00 to assist up to 4 low to moderate income persons that are first time homebuyers purchase affordable housing in the City of Dover. Grant Request: $80,000 Recommended funded amount: $80,000 Program Administration CDBG funds will be used to oversee management, monitor and coordination of the CDBG program in the City of Dover. Up to twenty percent 20% of the total grant allocation will be used to fund program administration. Recommended funded amount: $50,300 Central Delaware Housing Collaborative CDBG funds will be used for renovations for a Women’s Homeless Shelter. Grant Request: $15,000 Recommended funded amount: $15,000 Central Delaware Housing Collaborative CDBG funds will be used for operations costs for a women’s shelter which includes maintenance and utility costs. This project is a public service activity and subject to the 15% cap requirement. Grant Request: $25,000 Recommended funded amount: $25,000 Milford Housing Development Corporation (Emergency Home Repairs) CDBG funds will be used to complete emergency home repairs for single family residential owner-occupied housing units that are found to be in violation of the City’s Housing Code. This project will serve between 5-7 low-income households. There is a carryover balance from FY24. Grant Request: $40,000 Recommended funded amount: $25,000 Milford Housing Development Corporation (Homeowner Rehabilitation) CDBG funds will be used to rehabilitate single-family owner-occupied housing units that are found to be in violation of the City’s Housing Code. This project will service between 2-3 low-income households. There is a carryover balance from FY24. Grant Request: $75,000 Recommended funded amount: $35,000 Central Delaware Habitat for Humanity CDBG funds will be used for the construction of affordable housing in the Downtown Revitalization Area. Grant Request: $25,000 Recommended funded amount: $25,000 People’s Community Center CDBG funds will be used to provide meals at a homeless shelter. This project is a public service activity and subject to the 15% cap requirement. Grant Request: $28,700 Recommended funded amount: $22,700 Peoples’s Community Center CDBG funds will be used for renovations of a homeless shelter to provide a space for case management for homeless persons. Grant Request: $40,000 Recommended funded amount $40,000 5

Item 1. City of Dover, Delaware FY 2025-2029 DRAFT Five Year Consolidated Plan & FY2025 Annual Action Plan Prepared by: The City of Dover Planning & Community Development Office March 24, 2025 7

Item 1. Demo Executive Summary ES-05 Executive Summary - 24 CFR 91.200(c), 91.220(b) 1. Introduction Dover, the Capital of Delaware, is centrally located in the state and is part of the Mid-Atlantic region. The city is located approximately 90 miles from both Philadelphia and Washington, D.C. Dover’s population ranks second only to Wilmington, Delaware. Delaware and the Eastern Shore counties of Maryland and Virginia comprise the Delmarva Peninsula. Dover is also the largest city in land area on the peninsula with a total land area of over 23 square miles. The Consolidated Plan (2025-2029) is a five-year plan mandated by the United States Department of Housing and Urban Development (HUD). This plan identifies the specific needs concerning affordable housing, homeownership, housing rehabilitation, homelessness and community development needs such as public service needs. The strategic plan element of this plan specifies the goals identified in the preparation of this plan and includes the four goals that the Consolidated Plan revolves around. These goals in order of priority are: 1. Provide aid to special needs persons. 2. Preserve the existing housing stock. 3. Encourage owner occupied housing in low to moderate income areas. 4. Provide safe and livable neighborhoods. The Action Plan component of the Plan specifies how the projects will further these goals for fiscal year 2025. 2. Summary of the objectives and outcomes identified in the Plan Needs Assessment Overview The Consolidated Plan requires the city to access its housing and homeless needs, needs assessment and housing market analysis. These needs will be discussed further in the Consolidated Plan. For Fiscal Years 2025-2029, the City of Dover sets forth the following priorities: • Continue to provide Homeownership Assistance to first-time homebuyers who purchase affordable housing in the City of Dover • Assist homeless providers to meet the needs of the homeless Consolidated Plan DOVER 2 OMB Control No: 2506-0117 (exp. 06/30/2018) 8

Item 1. Demo • Make the necessary improvements to public facilities • Provide public service needs 3. Evaluation of past performance In implementing the City’s FY 2020-2024 Consolidated Plan, the city complied with meeting its goals and objectives. The following is a summary of accomplishments achieved during the FY20-23 Fiscal Years. The total accomplishments for FY24 will not be completed by the time of submission of the 2025-2029 Consolidated Plan. Homeownership Assistance: Twenty-four (24) first-time homebuyers received homeownership assistance to purchase affordable housing in the City. Emergency Shelter Providers: Over 1,375 homeless persons received over-night shelter through CDBG funds that were provided to Homeless Shelters for Operations Cost and improvements to the facilities. Homeowner Rehabilitation and Emergency Home Repairs: A total of 37 homeowners received CDBG funding through the Homeowner and Emergency Home Repair Programs. 4. Summary of citizen participation process and consultation process A minimum of two public hearings are required. Adequate notice is given through advertisement in the City’s local newspaper and the City’s website, with copies of the notices sent to such service agencies and public housing administration offices who serve and advocate for the low and very low income persons and disability communities to encourage citizens participation input by the citizens and their advocates to meet the needs of citizens and particularly those who are beneficiaries of the programs covered in the Consolidated Plan. The draft plan will be available for review for 30 days. The city will consider any comments or views of citizens or units of local government received in writing, or orally at public hearings, meetings, etc., in preparing the City’s final Consolidated Plan and Annual Action Plan. A fifteen-day period will be set aside for comments. A summary of these comments and responses shall be attached to the final Consolidated Plan amendment of the plan or Performance Report. 5. Summary of public comments A summary of the public comments received will be provided in the Appendix. 6. Summary of comments or views not accepted and the reasons for not accepting them 7. Summary Consolidated Plan DOVER 3 OMB Control No: 2506-0117 (exp. 06/30/2018) 9

Item 1. Demo The City of Dover has undertaken good faith efforts in outreaching to all segments of the community that may benefit from the CDBG program. Consolidated Plan DOVER 4 OMB Control No: 2506-0117 (exp. 06/30/2018) 10

Item 1. Demo The Process PR-05 Lead & Responsible Agencies 24 CFR 91.200(b) 1. Describe agency/entity responsible for preparing the Consolidated Plan and those responsible for administration of each grant program and funding source The following are the agencies/entities responsible for preparing the Consolidated Plan and those responsible for administration of each grant program and funding source. Agency Role Name Department/Agency Community Development DOVER Planning/ City of Dover Manager Table 1 – Responsible Agencies Narrative The Community Development Office is a part of the Department of Planning and Community Development in the Public Services Department. The Community Development Office has one full-time employee, the Community Development Manager who administers the CDBG Grant and is the Fair Housing Coordinator. Clerical, planning and inspection assistance is provided by the Planning and Inspections Department. The Building Inspections Office also provides housing and life safety inspections throughout the City including property maintenance. The Dover Housing Authority provides responsibility for the public housing needs within the City and is a separate entity from the City. The Delaware State Housing Authority operates both Section 8 vouchers and public housing units also caters to the housing needs of low-moderate income families. Consolidated Plan Public Contact Information City of Dover Department of Planning & Community Development 15 Loockerman Plaza, Dover, DE 19901 Phone (302) 736-7196 Fax: (302) 736-4217 Website: www.cityofdover.com Tracey Harvey, Community Development Manager Email: tharvey@dover.de.us Consolidated Plan DOVER 5 OMB Control No: 2506-0117 (exp. 06/30/2018) 11

Item 1. Demo PR-10 Consultation – 91.100, 91.110, 91.200(b), 91.300(b), 91.215(I) and 91.315(I) 1. Introduction The public participation events planned for the Consolidated Plan (2025-2029) represent the culmination of decades of experience in conducting similar events. In addition to the normal advertising of meetings in the local press, the staff notified stakeholders in writing and by the internet. The public was also notified of all meetings and hearings. Two public hearings are required. Adequate notice is given through advertisements in the City’s local newspaper and the City’s website. Copies of the notices are sent to service agencies and public housing administration offices that serve and advocate for the low and very low income persons and disability communities to encourage citizen participation input by the citizens and their advocates, meet the needs of citizens and particularly those who are beneficiaries of the programs covered in the Consolidated Plan. Provide a concise summary of the jurisdiction’s activities to enhance coordination between public and assisted housing providers and private and governmental health, mental health and service agencies (91.215(I)). Development of the Consolidated Plan has involved several months of effort and coordination by gathering members of the community, state and local housing authorities and various state and county agencies within the State of Delaware to consult on topics regarding homelessness, persons with disabilities, elderly, persons with HIV/AIDS, services for children and housing needs. The following is a list of agencies that the City of Dover consulted with in preparing the Consolidated Plan: • Housing Alliance of Delaware • Delaware State Housing Authority • Dover Housing Authority • Milford Housing Development Corporation • Central Delaware Housing Collaborative • Elizabeth Murphey School • State of Delaware Department of Health and Social Services • State of Delaware Division of Family Services • NeighborGood Partners Consolidated Plan DOVER 6 OMB Control No: 2506-0117 (exp. 06/30/2018) 12

Item 1. Demo Describe coordination with the Continuum of Care and efforts to address the needs of homeless persons (particularly chronically homeless individuals and families, families with children, veterans, and unaccompanied youth) and persons at risk of homelessness The Housing Alliance of Delaware is the coordinator of the Continuum of Care (CoC) for the State of Delaware. City planning staff regularly attend the CoC meetings and will continue to support the need of ending chronic homelessness by actively collaborating with housing providers that service the homeless and those that are at risk of homelessness. Describe consultation with the Continuum(s) of Care that serves the jurisdiction's area in determining how to allocate ESG funds, develop performance standards and evaluate outcomes, and develop funding, policies and procedures for the administration of HMIS Not applicable, the City of Dover does not receive ESG funds. 2. Describe Agencies, groups, organizations and others who participated in the process and describe the jurisdictions consultations with housing, social service agencies and other entities Consolidated Plan DOVER 7 OMB Control No: 2506-0117 (exp. 06/30/2018) 13

Item 1. Demo Table 2 – Agencies, groups, organizations who participated 1 Agency/Group/Organization DELAWARE DIVISION OF SOCIAL SERVICES Agency/Group/Organization Type Services-Persons with HIV/AIDS What section of the Plan was addressed Housing Need Assessment by Consultation? How was the Data was gathered from the website of the Agency/Group/Organization consulted Department of Health and Social Services with the and what are the anticipated outcomes most current data for persons in Kent County of the consultation or areas for improved Delaware with HIV/Aids. This data will help in coordination? assisting this special needs population. 2 Agency/Group/Organization CENTRAL DELAWARE HABITAT FOR HUMANITY Agency/Group/Organization Type Services Housing What section of the Plan was addressed Community Development Needs Assessment by Consultation? How was the Habitat attended the public workshop to assist with Agency/Group/Organization consulted determining the Community development needs for and what are the anticipated outcomes the City of Dover of the consultation or areas for improved coordination? 3 Agency/Group/Organization DELAWARE STATE HOUSING AUTHORITY Agency/Group/Organization Type Other government - State What section of the Plan was addressed Housing Need Assessment by Consultation? How was the Information was gathered from DSHA's Housing Agency/Group/Organization consulted Need Assessment to determine how to address and what are the anticipated outcomes affordable housing needs for low to moderate of the consultation or areas for improved income persons. coordination? 4 Agency/Group/Organization DOVER INTERFAITH MISSION TO THE HOMELESS Agency/Group/Organization Type Services-homeless Planning organization What section of the Plan was addressed Homeless Needs - Chronically homeless by Consultation? Consolidated Plan DOVER 8 OMB Control No: 2506-0117 (exp. 06/30/2018) 14

Item 1. Demo How was the The citizen participation process for the 2025-2029 Agency/Group/Organization consulted Consolidated Plan was initiated with a stakeholder and what are the anticipated outcomes meeting that included local housing providers to of the consultation or areas for improved assist with determining the community coordination? developments needs to better serve our community with a series of public hearings to seek additional needs and priorities from citizens in the community. 5 Agency/Group/Organization DOVER HOUSING AUTHORITY Agency/Group/Organization Type PHA What section of the Plan was addressed Public Housing Needs by Consultation? How was the Data was gathered from Dover Housing Authority to Agency/Group/Organization consulted determine the current status of the public housing and what are the anticipated outcomes and Section 8 waiting list as of March 2025 to verify of the consultation or areas for improved the need of affordable rental housing. coordination? 6 Agency/Group/Organization HOUSING ALLIANCE OF DELAWARE Agency/Group/Organization Type Services-homeless What section of the Plan was addressed Homeless Needs - Chronically homeless by Consultation? Homeless Needs - Families with children Homelessness Needs - Veterans Homelessness Needs - Unaccompanied youth How was the The Homeless Planning Council has now become the Agency/Group/Organization consulted Housing Alliance of Delaware (HAD). Homeless data and what are the anticipated outcomes for Dover was provided by HAD to assist in ending of the consultation or areas for improved homelessness in Dover. coordination? 7 Agency/Group/Organization Milford Housing Development Corporation Agency/Group/Organization Type Regional organization Planning organization What section of the Plan was addressed Housing Need Assessment by Consultation? Consolidated Plan DOVER 9 OMB Control No: 2506-0117 (exp. 06/30/2018) 15

Item 1. Demo How was the The citizen participation process for the 2025-2029 Agency/Group/Organization consulted Consolidated Plan was initiated with a stakeholder and what are the anticipated outcomes meeting that included local housing providers to of the consultation or areas for improved assist with determining the community coordination? developments needs to better serve our community with a series of public hearings to seek additional needs and priorities from citizens in the community. 8 Agency/Group/Organization NeighborGood Partners Agency/Group/Organization Type Services - Housing Planning organization What section of the Plan was addressed Housing Need Assessment by Consultation? How was the The citizen participation process for the 2025-2029 Agency/Group/Organization consulted Consolidated Plan was initiated with a stakeholder and what are the anticipated outcomes meeting that included local housing providers to of the consultation or areas for improved assist with determining the community coordination? developments needs to better serve our community with a series of public hearings to seek additional needs and priorities from citizens in the community. Identify any Agency Types not consulted and provide rationale for not consulting Other local/regional/state/federal planning efforts considered when preparing the Plan Name of Plan Lead Organization How do the goals of your Strategic Plan overlap with the goals of each plan? Continuum of Care Housing Alliance of The City of Dover includes funding for homeless Delaware programs as a priority in its Strategic Plan that are in line with the needs and priorities with the CoC. Analysis of Delaware Statewide The Strategic goals include the promotion of fair Impediments to Fair Entitlement housing for all, preserving the existing stock and Housing Jurisdictions providing affordable housing. Restoring Central NeighborGood Strengthen existing housing and expanding Dover Initiative Partners homeownership for low income persons are consistent with the goals in the Consolidated Plan Downtown Delaware State Strengthen neighborhoods and build a stable Development District Housing Authority community of long term residents are consistent Program with the goals of the Consolidated Plan Consolidated Plan DOVER 10 OMB Control No: 2506-0117 (exp. 06/30/2018) 16

Item 1. Demo Table 3 – Other local / regional / federal planning efforts Describe cooperation and coordination with other public entities, including the State and any adjacent units of general local government, in the implementation of the Consolidated Plan (91.215(l)) Other units of State and local government were included in the outreach list and received notification of public hearings. Narrative (optional): Consolidated Plan DOVER 11 OMB Control No: 2506-0117 (exp. 06/30/2018) 17

Item 1. Demo PR-15 Citizen Participation – 91.105, 91.115, 91.200(c) and 91.300(c) 1. Summary of citizen participation process/Efforts made to broaden citizen participation Summarize citizen participation process and how it impacted goal-setting The City of Dover’s Consolidated Plan Citizen Participation Plan (CPP) has been prepared by the City of Dover in accordance with the requirements contained in Part 9115 of Title 24 of the Code of Federal Regulations. The CPP outlines the various methods the city will use to inform its citizens of and actively involve them in developing the Consolidated Plan. Stakeholder Meeting: The City of Dover held a Stakeholder Meeting on January 30, 2025 to solicit input on the needs to better serve the community. Public Hearings: The city held a Public Hearing on January 30, 2025 to review housing and community development needs in the City. The second public hearing date TBD. Public Review of Draft Documents: A 30-day public review TBD. Citizen Participation Outreach Sort Orde Mode of Outrea Target of Outrea Summary of Summary of Summary of commen URL (If applicable) r ch ch response/attendan comments receiv ts not accepted ce ed and reasons 1 Public Meeting Stakeholders 8 8 none 2 Public Hearing Non- targeted/broad community 3 Internet Non- www.cityofdover.co Outreach targeted/broad m community 4 Newspaper Ad Non- www.cityofdover.co targeted/broad m community Consolidated Plan DOVER 12 OMB Control No: 2506-0117 (exp. 06/30/2018) 18

Item 1. Demo Table 4 – Citizen Participation Outreach Consolidated Plan DOVER 13 OMB Control No: 2506-0117 (exp. 06/30/2018) 19

Item 1. Demo Needs Assessment NA-05 Overview Needs Assessment Overview During the Consolidated Plan process, stakeholders were asked to rank the relative importance of housing and community development needs. The following needs were identified as priorities for the City of Dover. • Services for Homeless • Homeownership Assistance • Affordable Rental Housing • Owner Occupied Homeowner Rehabilitation • Increasing Community Policing in Downtown Dover Consolidated Plan DOVER 14 OMB Control No: 2506-0117 (exp. 06/30/2018) 20

Item 1. Demo NA-10 Housing Needs Assessment - 24 CFR 91.205 (a,b,c) Summary of Housing Needs A total of 7% of all households in the City of Dover are 80% and below the HUD Area Median Family Income (HAMFI): Fourteen 14% of households have incomes between 0% and 30% of the HAMFI and 14% of households have incomes between 30% and 50% HAMFI. Thirty-three 33% of households in the city spend more than 30% of their income on rent/mortgage and utilities that are suffering a cost burden. The housing cost burden is extremely difficult for very low-income households that are between 0% and 30% HAMFI because 16% of this population spends more than 50% of their income on housing. Demographics Base Year: 2010 Most Recent Year: 2021 % Change Population 35,474 39,491 11.23% Households 13,046 15,462 18.52% Median Income $46,195 $58,336 26.28/% Table 5 - Housing Needs Assessment Demographics Alternate Data Source Name: US Census Data Data Source Comments: American Community Survey, 2019-2023 Five-Year Estimates Number of Households Table 0-30% >30-50% >50-80% >80-100% >100% HAMFI HAMFI HAMFI HAMFI HAMFI Total Households 2,100 2,095 2,790 1.135 6,865 Small Family Households 790 755 1,345 480 3,935 Large Family Households 150 135 115 75 310 Households contain at least one person 62-74 years of age 345` 240 530 220 1,655 Household contains at least one person age 75 or older 230 470 380 114 885 Households with one or more children 6 years old or younger 1,260 `785 815 3,970 1,035 Table 6 - Total Households Table Alternate Data Source Name: CHAS 2017-2021 Data Source Comments: 2017-2021 Consolidated Plan DOVER 15 OMB Control No: 2506-0117 (exp. 06/30/2018) 21

Item 1. Demo Housing Needs Summary Tables 1. Housing Problems (Households with one of the listed needs) Renter Owner 0-30% >30- >50- >80- Total 0-30% >30- >50- >80- Total AMI 50% 80% 100% AMI 50% 80% 100% AMI AMI AMI AMI AMI AMI NUMBER OF HOUSEHOLDS Substandard Housing - Lacking complete plumbing or kitchen facilities 1,260 1,110 1,455 280 4,105 315 385 470 205 1,375 Severely Overcrowded - With >1.51 people per room (and complete kitchen and plumbing) 0 35 10 45 90 0 0 0 0 0 Overcrowded - With 1.01-1.5 people per room (and none of the above problems) 50 70 55 35 210 35 0 20 0 20 Housing cost burden greater than 50% of income (and none of the above problems) 995 710 225 0 1,930 200 210 65 30 505 Consolidated Plan DOVER 16 OMB Control No: 2506-0117 (exp. 06/30/2018) 22

Item 1. Demo Renter Owner 0-30% >30- >50- >80- Total 0-30% >30- >50- >80- Total AMI 50% 80% 100% AMI 50% 80% 100% AMI AMI AMI AMI AMI AMI Housing cost burden greater than 30% of income (and none of the above problems) 1,160 1,005 1,355 200 3,720 315 385 440 200 1,340 Zero/negative Income (and none of the above problems) 100 0 0 0 100 65 0 0 0 65 Table 7 – Housing Problems Table Alternate Data Source Name: CHAS 2017-2021 Data Source Comments: 2017-2021CHAS 2. Housing Problems 2 (Households with one or more Severe Housing Problems: Lacks kitchen or complete plumbing, severe overcrowding, severe cost burden) Renter Owner 0-30% >30- >50- >80- Total 0- >30- >50- >80- Total AMI 50% 80% 100% 30% 50% 80% 100% AMI AMI AMI AMI AMI AMI AMI NUMBER OF HOUSEHOLDS Having 1 or more of four housing problems 1,255 980 1,015 185 3,435 325 355 320 195 1,195 Having none of four housing problems 250 320 255 350 1,175 35 145 520 600 1,300 Household has negative income, but none of the other housing problems 505 0 0 0 505 430 0 0 0 430 Table 8 – Housing Problems 2 Alternate Data Source Name: CHAS 2017-2021 Data Source Comments: Consolidated Plan DOVER 17 OMB Control No: 2506-0117 (exp. 06/30/2018) 23

Item 1. Demo 3. Cost Burden > 30% Renter Owner 0-30% >30-50% >50-80% Total 0-30% >30- >50- Total AMI AMI AMI AMI 50% 80% AMI AMI NUMBER OF HOUSEHOLDS Small Related 505 315 38 1,200 45 85 265 395 Large Related 140 115 75 330 0 0 10 10 Elderly 0 0 25 25` 80 50 70 200 Other 620 665 930 2,215 190 255 95 540 Total need by 1,265 1,095 1,410 3,770 315 390 440 1,145 income Table 9 – Cost Burden > 30% Alternate Data Source Name: CHAS 2017-2021 Data Source Comments: 4. Cost Burden > 50% Renter Owner 0-30% >30- >50- Total 0-30% >30- >50- Total AMI 50% 80% AMI 50% 80% AMI AMI AMI AMI Small Related 395 155 90 640 45 30 0 75 Large Related 90 70 0 160 0 0 0 0 Elderly 560 530 135 1,225 115 150 20 285 Other 560 530 135 1,225 115 150 20 285 Total need by 1,045 755 225 2,025 200 215 65 480 income Table 10 – Cost Burden > 50% Alternate Data Source Name: CHAS 2017-2021 Data Source Comments: Consolidated Plan DOVER 18 OMB Control No: 2506-0117 (exp. 06/30/2018) 24

Item 1. Demo 5. Crowding (More than one person per room) Renter Owner 0-30% >30- >50- >80- Total 0- >30- >50- >80- Total AMI 50% 80% 100% 30% 50% 80% 100% AMI AMI AMI AMI AMI AMI AMI NUMBER OF HOUSEHOLDS Single family households 695 155 1,010 755 2,615 360 2,580 615 35 3,590 Multiple, unrelated family households 205 120 785 285 1,395 10 775 465 255 1,505 Other, non- family households 414 35 25 60 534 10 160 19 140 329 Total need by 1,314 310 1,820 1,100 4,544 380 3,515 1,099 430 5,424 income Table 11 – Crowding Information – 1/2 Alternate Data Source Name: CHAS 2017-2021 Data Source Comments: Renter Owner 0- >30- >50- Total 0- >30- >50- Total 30% 50% 80% 30% 50% 80% AMI AMI AMI AMI AMI AMI Households with Children Present 405 460 320 1,185 855 325 495 1,675 Table 12 – Crowding Information – 2/2 Alternate Data Source Name: CHAS 2017-2021 Data Source Comments: Describe the number and type of single person households in need of housing assistance. The 2024 Point in Time Study conducted by the Housing Alliance of Delaware indicates there were 100 sheltered individuals and 41 unsheltered individuals in need of housing. As of March 2025, Housing needs for single individual households on the Dover Housing Authority Public Housing waiting list indicates 321 individuals needed an efficiency unit, and 348 in need of a 1 bedroom. Estimate the number and type of families in need of housing assistance who are disabled or victims of domestic violence, dating violence, sexual assault and stalking. Consolidated Plan DOVER 19 OMB Control No: 2506-0117 (exp. 06/30/2018) 25

Item 1. Demo Based on 2025 data from Dover Housing Authority, there were 32 families with disabilities on the Section 8 waiting list, and 68 families with disabilities on the Public Housing waiting list. There was no data available for victims of domestic violence, dating violence and sexual assault and stalking. What are the most common housing problems? The most common housing problem in Dover is the cost burden where 16% households that are 0-30% of the Area Median Income (AMI) are paying greater than 50% of their income on housing; and over 33% of all households in the city spend more than 30% of their income on housing and utilities and suffering a cost burden. This population is at risk of becoming homeless with very little left to purchase food and clothing. Delaware is the 17th highest in the country with the highest two-bedroom housing wage in Dover at $26.31 based on 2025 data from Delaware Out of Reach. A two-bedroom fair market rent in Dover is $1,368.00 which makes it impossible for individuals earning less than $26.31 an hour to afford a modest two-bedroom apartment. Secondly, the data reported that an estimated 42% of Delaware renters cannot afford a two-bedroom apartment in the county they live in. Are any populations/household types more affected than others by these problems? Households that are elderly, persons with disabilities and low-income veterans carry the highest burden with very few affordable housing units available. This population is on a fixed income and is suffering from a severe housing cost burden. A disabled person dependent on SSI cannot afford an efficiency apartment in the State of Delaware. Describe the characteristics and needs of Low-income individuals and families with children (especially extremely low-income) who are currently housed but are at imminent risk of either residing in shelters or becoming unsheltered 91.205(c)/91.305(c)). Also discuss the needs of formerly homeless families and individuals who are receiving rapid re-housing assistance and are nearing the termination of that assistance Households that are at 30% and below the area median income are at imminent risk of becoming homeless. These populations, particularly single parent households with children, have a greater need for affordable housing and additional supportive services. Due to the average Fair Market Rent of $1,368.00 in the Dover Metropolitan Area for a two-bedroom apartment, affordable housing is impossible for this population unless they have a Housing Choice Voucher or reside in Public Housing. It will be especially difficult for families receiving rapid re-housing and that were formerly homeless to maintain affordable housing if they are not gainfully employed. Often the homeless population suffers from substance abuse, mental illness and incarceration. It is important for this population to receive case management and assistance from social service agencies to prevent recidivism and relapses from substance abuse. If a jurisdiction provides estimates of the at-risk population(s), it should also include a description of the operational definition of the at-risk group and the methodology used to generate the estimates: Consolidated Plan DOVER 20 OMB Control No: 2506-0117 (exp. 06/30/2018) 26

Item 1. Demo The criteria for defining “at-risk of homelessness” per HUD guidelines is an individual or family who: (1) has an annual income below 30% of the median family income for the area; and (2) does not have sufficient resources or support networks immediately available to prevent them from moving to an emergency shelter or another place defined in Category 1 of the “homeless” definition: and (3) meets one of the following conditions: (a) Has moved because of economic reasons 2 or more times during the 60 days immediately preceding the application for assistance; or (b) is living in the home of another because of economic hardship; or (c) has been notified that their right to occupy their current housing or living situation will be terminated within 21 days after the date of application for assistance; or (d) lives in a hotel or motel and the cost is not paid for by charitable organizations or by Federal, State, or local government programs for low-income individuals: or (e) lives in severely overcrowded housing: or (f) is exiting a publicly funded institution or system of care; or (g) otherwise lives in housing that has characteristics associated with instability and an increased risk of homelessness. For households and individuals that are 30% and below the area median income and pay more than 50% their income for housing will put them “at risk for homelessness” if they don’t have a subsidy to supplement their income or any additional resources. Specify particular housing characteristics that have been linked with instability and an increased risk of homelessness Instability and increased risk of homelessness are linked together by mental illness and drug abuse; living in temporary housing such as a motel or hotel; lack of maintaining stable employment and individuals that were recently incarcerated or released from a mental health facility. Other areas that could impact instability include lack of available resources such as the availability of affordable housing such as public housing or Section 8; domestic abuse, high medical expenses, or housing that has been condemned due to unsafe and inhabitable living conditions as well as being evicted. Discussion The city is working on several initiatives in conjunction with other agencies that will assist in providing affordable housing and reducing the risk of homelessness for low income persons. The city is one of the stakeholders in the Restoring Central Dover Initiative, which goal is to revitalize central Dover. Part of the initiative includes expanding the housing repair program to provide additional resources in the target area for home repairs and to boost homeownership opportunities in this area by providing down payment assistance and funding for renovations to families who purchase properties in the designated area. Habitat for Humanity is the lead agency for the Strong Neighborhood Housing Fund which will acquire vacant or foreclosed properties in the target area and use CDBG funding to renovate the property to sell to a family who is 60% and below the area median income in Dover. There are also several incentives available through the Downtown Dover Development District designation. If a property is purchased within the Downtown Redevelopment Target Area, the transfer tax will be waived for owner occupied first time homebuyers and property taxes will be abated for owner occupied homes. Eligible persons shall also be given relief from payment of real estate taxes for the first four years owning their homes with prorated payments for each of the four years the homeowner is occupying the property. Consolidated Plan DOVER 21 OMB Control No: 2506-0117 (exp. 06/30/2018) 27

Item 1. Demo NA-15 Disproportionately Greater Need: Housing Problems – 91.205 (b)(2) Assess the need of any racial or ethnic group that has a disproportionately greater need in comparison to the needs of that category of need as a whole. Introduction In each income category, African American families have the overall highest percentage of housing problems than any other race with an average of 59%, while white families have an overall average of 30% and Hispanics with 4%. Housing problems exist when there is at least one of the following problems: lacks complete kitchen facilities, lack of complete plumbing facilities, more than one person per room, and a cost burden greater than 30% as defined by HUD. HUD’s definition of “Disproportionately greater need “exists when the percentage of persons in a category of need who are members of a particular racial or ethnic group is at least 10 percentage points higher than the percentage of persons in the category as a whole. 1 0%-30% of Area Median Income Housing Problems Has one or more Has none of the Household has of four housing four housing no/negative problems problems income, but none of the other housing problems Jurisdiction as a whole 1,575 525 165 White 480 200 N/A* Black / African American 930 240 N/A* Asian 30 0 N/A* American Indian, Alaska Native 0 0 N/A* Pacific Islander 0 0 N/A* Hispanic 70 70 N/A* Table 13 - Disproportionally Greater Need 0 - 30% AMI Alternate Data Source Name: CHAS 2017-2021 Data Source Comments: N/A* means that the data point is no longer available in the CHAS data base *The four housing problems are: 1. Lacks complete kitchen facilities, 2. Lacks complete plumbing facilities, 3. More than one person per room, 4. Cost Burden greater than 30% Consolidated Plan DOVER 22 OMB Control No: 2506-0117 (exp. 06/30/2018) 28

Item 1. Demo 30%-50% of Area Median Income Housing Problems Has one or more Has none of the Household has of four housing four housing no/negative problems problems income, but none of the other housing problems Jurisdiction as a whole 1,495 600 0 White 550 185 N/A* Black / African American 500 335 N/A* Asian 15 0 N/A* American Indian, Alaska Native 25 10 N/A* Pacific Islander 0 0 N/A* Hispanic 30 0 N/A* Table 14 - Disproportionally Greater Need 30 - 50% AMI Alternate Data Source Name: CHAS 2017-2021 Data Source Comments: N/A* means that the data point is no longer available in the CHAS data base *The four housing problems are: 1. Lacks complete kitchen facilities, 2. Lacks complete plumbing facilities, 3. More than one person per room, 4. Cost Burden greater than 30% 50%-80% of Area Median Income Housing Problems Has one or more Has none of the Household has of four housing four housing no/negative problems problems income, but none of the other housing problems Jurisdiction as a whole 1,925 865 0 White 710 400 N/A* Black / African American 705 275 N/A* Asian 305 0 N/A* American Indian, Alaska Native 0 0 N/A* Pacific Islander 0 0 N/A* Hispanic 100 160 N/A* Table 15 - Disproportionally Greater Need 50 - 80% AMI Alternate Data Source Name: CHAS 2017-2021 Data Source Comments: N/A* means that the data point is no longer available in the CHAS data base *The four housing problems are: Consolidated Plan DOVER 23 OMB Control No: 2506-0117 (exp. 06/30/2018) 29

Item 1. Demo 1. Lacks complete kitchen facilities, 2. Lacks complete plumbing facilities, 3. More than one person per room, 4. Cost Burden greater than 30% 80%-100% of Area Median Income Housing Problems Has one or more Has none of the Household has of four housing four housing no/negative problems problems income, but none of the other housing problems Jurisdiction as a whole 485 650 0 White 250 460 N/A* Black / African American 165 135 N/A* Asian 4 20 N/A* American Indian, Alaska Native 0 0 N/A* Pacific Islander 0 0 N/A* Hispanic 55 30 N/A* Table 16 - Disproportionally Greater Need 80 - 100% AMI Alternate Data Source Name: CHAS 2017-2021 Data Source Comments: N/A* means that the data point is no longer available in the CHAS data base *The four housing problems are: 1. Lacks complete kitchen facilities, 2. Lacks complete plumbing facilities, 3. More than one person per room, 4. Cost Burden greater than 30% Discussion There are 1,575 households in the City of Dover with one or more of the four housing problems. Of that total, 14% are extremely low income (0%-30%HAMFI); 10% are low income households between (30%- 50% HAMFI), and 12% are moderate income households at (50%-80% HAMFI). Only 485 households have housing problems that are at 80% and above the HAMFI. African Americans have the highest number of housing problems followed by Whites and Hispanics at 0%-30% of the AMI. Consolidated Plan DOVER 24 OMB Control No: 2506-0117 (exp. 06/30/2018) 30

Item 1. Demo NA-20 Disproportionately Greater Need: Severe Housing Problems – 91.205 (b)(2) Assess the need of any racial or ethnic group that has a disproportionately greater need in comparison to the needs of that category of need as a whole. Introduction Severe housing problems occur when the following problems exist within a household: lack of complete kitchen facilities, lack of complete plumbing facilities, more than 1.5 persons per room, and a cost burden over 50% of household income. Severe housing problems are most prevalent for households whose income is 0%-30% of the Area Median Income. 0%-30% of Area Median Income Severe Housing Problems* Has one or more Has none of the Household has of four housing four housing no/negative problems problems income, but none of the other housing problems Jurisdiction as a whole 1,290 810 390 White 390 290 N/A* Black / African American 815 355 N/A* Asian 10 25 N/A* American Indian, Alaska Native 0 0 N/A* Pacific Islander 0 0 N/A* Hispanic 45 95 N/A* Table 17 – Severe Housing Problems 0 - 30% AMI Alternate Data Source Name: CHAS 2017-2021 Data Source Comments: N/A* means that the data point is no longer available in the CHAS data base *The four severe housing problems are: 1. Lacks complete kitchen facilities, 2. Lacks complete plumbing facilities, 3. More than 1.5 persons per room, 4.Cost Burden over 50% 30%-50% of Area Median Income Severe Housing Problems* Has one or more Has none of the Household has of four housing four housing no/negative problems problems income, but none of the other housing problems Jurisdiction as a whole 1,025 1,065 465 Consolidated Plan DOVER 25 OMB Control No: 2506-0117 (exp. 06/30/2018) 31

Item 1. Demo Severe Housing Problems* Has one or more Has none of the Household has of four housing four housing no/negative problems problems income, but none of the other housing problems White 360 375 N/A* Black / African American 320 510 N/A* Asian 15 0 N/A* American Indian, Alaska Native 0 35 N/A* Pacific Islander 0 0 N/A* Hispanic 30 0 N/A* Other Table 18 – Severe Housing Problems 30 - 50% AMI Alternate Data Source Name: CHAS 2017-2021 Data Source Comments: N/A* means that the data point is no longer available in the CHAS data base *The four severe housing problems are: 1. Lacks complete kitchen facilities, 2. Lacks complete plumbing facilities, 3. More than 1.5 persons per room, 4. Cost Burden over 50% 50%-80% of Area Median Income Severe Housing Problems* Has one or more Has none of the Household has of four housing four housing no/negative problems problems income, but none of the other housing problems Jurisdiction as a whole 420 2370 375 White 135 980 N/A* Black / African American 210 770 N/A* Asian 0 105 N/A* American Indian, Alaska Native 0 0 N/A* Pacific Islander 0 0 N/A* Hispanic 0 260 N/A* Other Table 19 – Severe Housing Problems 50 - 80% AMI Alternate Data Source Name: CHAS 2017-2021 Data Source Comments: N/A* means that the data point is no longer available in the CHAS data base *The four severe housing problems are: 1. Lacks complete kitchen facilities, 2. Lacks complete plumbing facilities, 3. More than 1.5 persons per room, 4. Cost Burden over 50% Consolidated Plan DOVER 26 OMB Control No: 2506-0117 (exp. 06/30/2018) 32

Item 1. Demo 80%-100% of Area Median Income Severe Housing Problems* Has one or more Has none of the Household has of four housing four housing no/negative problems problems income, but none of the other housing problems Jurisdiction as a whole 110 1025 445 White 15 700 N/A* Black / African American 95 200 N/A* Asian 0 24 N/A* American Indian, Alaska Native 0 0 N/A* Pacific Islander 0 0 N/A* Hispanic 0 80 N/A* Other Table 20 – Severe Housing Problems 80 - 100% AMI Alternate Data Source Name: CHAS 2017-2021 Data Source Comments: N/A* means that the data point is no longer available in the CHAS data base *The four severe housing problems are: 1. Lacks complete kitchen facilities, 2. Lacks complete plumbing facilities, 3. More than 1.5 persons per room, 4. Cost Burden over 50% Discussion There are 1,260 households in the City of Dover that are experiencing severe housing problems. Of that total, 8% are between 0%-30% of the HAMFI, 14% are between 30%-50% of the HAMFI, 18% are between 50%-80% of the HAMFI and 7% are between 80%-100% of the HAMFI. African Americans households that are very low income have the highest rate of severe housing problems in the City of Dover, followed by whites and Hispanics from all income categories. The populations of all other minorities make up a very small population in the City of Dover. According to the 2017-2021 CHAS data, there are 1% of Asians, and 1% American Indians/Alaska Natives and 0.1% of Pacific Islanders in the City. This minority population is not experiencing any severe housing problems. Consolidated Plan DOVER 27 OMB Control No: 2506-0117 (exp. 06/30/2018) 33

Item 1. Demo NA-25 Disproportionately Greater Need: Housing Cost Burdens – 91.205 (b)(2) Assess the need of any racial or ethnic group that has a disproportionately greater need in comparison to the needs of that category of need as a whole. Introduction: A disproportionate housing need refers to any group that has a housing need which is at least 10 percentage points higher than the total population. The following tables identify the extent of housing cost burden by race. Housing Cost Burden Housing Cost Burden <=30% 30-50% >50% No / negative income (not computed) Jurisdiction as a whole 8,890 3,305 2,620 165 White 5,080 1,320 835 75 Black / African American 2,755 1,145 1,210 90 Asian 110 340 70 0 American Indian, Alaska Native 0 0 0 0 Pacific Islander 0 0 0 0 Hispanic 620 205 75 0 Table 21 – Greater Need: Housing Cost Burdens AMI Alternate Data Source Name: CHAS 2017-2021 Data Source Comments: Discussion: In the City of Dover, approximately 57% of households spend less than 30% of their income on housing costs with 33% of white households spending less than 30% of their income on housing cost and 18% of African Americans spending less than 30% of their income on housing cost. The remainder of the minority populations identified in the table above is disproportionately represented because only 4% of this population is in this category. A little over 21% of all households spend between 30% and 50% of their income on housing. With white households spending 9% of their income on housing cost and African American households spending 7% of their income on housing cost. The remainders of the minority population identified are disproportionately affected with 2% of the Asian population and 1% of Hispanic population paying between 30% and 50% of their income on housing with Asians making up 3% of the population in Dover and Hispanics making up 3% of the population in Dover. There are not any American Indians/ Alaska Natives and Pacific Islanders included in this category. Consolidated Plan DOVER 28 OMB Control No: 2506-0117 (exp. 06/30/2018) 34

Item 1. Demo A total of 13% of all households spend more than 50% of their income on housing, with 0.84% of the population having no income or it was not tabulated. Consolidated Plan DOVER 29 OMB Control No: 2506-0117 (exp. 06/30/2018) 35

Item 1. Demo NA-30 Disproportionately Greater Need: Discussion – 91.205(b)(2) Are there any Income categories in which a racial or ethnic group has disproportionately greater need than the needs of that income category as a whole? Based on the current 2017-2021 CHAS data, Dover has a very small concentration of the following ethnic groups: American Indian and Alaska Native 1%, Pacific Islander 0%, Asian 3% and 3% Hispanic. Because of the very small concentration of these ethnic groups, there is not a disproportionate impact on any of the income categories. Under the disproportionately housing needs and severe housing problems, American Indians/Alaska Natives, Pacific Islanders and Asians are not disproportionately affected identifying no housing problems in any of the income categories. However, African Americans and Whites have disproportionately greater housing and severe housing problems in all income categories, with Hispanics having less than 3.2% of any housing problems in all income categories. If they have needs not identified above, what are those needs? In addition to affordable housing that meets the housing code, and higher incomes needed to afford housing in Delaware, transportation appears to be an issue for low incomes persons that do not have a vehicle. Public transportation in the City of Dover does not have service after 6:00 pm, making it very difficult for this population to commute to other towns outside of Dover for employment. Are any of those racial or ethnic groups located in specific areas or neighborhoods in your community? Based on 2017-2021 ACS data, 62% of African Americans make up the population in the Central Dover Downtown Target Area. Consolidated Plan DOVER 30 OMB Control No: 2506-0117 (exp. 06/30/2018) 36

Item 1. Demo NA-35 Public Housing – 91.205(b) Introduction Dover Housing Authority (DHA) is the local Housing Authority that serves the City of Dover. DHA has a total of 374 public housing units available for occupancy including 31 scattered site units. Many of these units are 3 bedrooms. DHA also provides rental assistance to low and moderate income persons through HUD’s Section 8 Program. Presently there are 174 housing choice vouchers under lease and tenant based which means they are only offered to tenants on DHA’s waiting list. Totals in Use Program Type Certificate Mod- Public Vouchers Rehab Housing Total Project - Tenant - Special Purpose Voucher based based Veterans Family Disabled Affairs Unification * Supportive Program Housing # of units vouchers in use 0 0 294 190 0 163 0 0 240 Table 22 - Public Housing by Program Type *includes Non-Elderly Disabled, Mainstream One-Year, Mainstream Five-year, and Nursing Home Transition Alternate Data Source Name: Dover Housing Authority Data Source Comments: Consolidated Plan DOVER 31 OMB Control No: 2506-0117 (exp. 06/30/2018) 37

Item 1. Demo Characteristics of Residents Program Type Certificate Mod- Public Vouchers Rehab Housing Total Project - Tenant - Special Purpose Voucher based based Veterans Family Affairs Unification Supportive Program Housing Average Annual Income 0 0 10,427 14,504 13,828 14,379 0 0 Average length of stay 0 0 5 5 0 5 0 0 Average Household size 0 0 2 2 0 2 0 0 # Homeless at admission 0 0 0 0 0 0 0 0 # of Elderly Program Participants (>62) 0 0 25 42 68 38 0 0 # of Disabled Families 0 0 68 32 80 28 0 0 # of Families requesting accessibility features 0 0 280 174 0 163 0 0 # of HIV/AIDS program participants 0 0 0 0 0 0 0 0 # of DV victims 0 0 0 0 0 0 0 0 Table 23 – Characteristics of Public Housing Residents by Program Type Data Source: PIC (PIH Information Center) Consolidated Plan DOVER 32 OMB Control No: 2506-0117 (exp. 06/30/2018) 38

Item 1. Demo Race of Residents Program Type Race Certificate Mod- Public Vouchers Rehab Housing Total Project - Tenant - Special Purpose Voucher based based Veterans Family Disabled Affairs Unification * Supportive Program Housing White 0 0 35 32 37 30 0 0 2 Black/African American 0 0 244 139 61 130 0 0 5 Asian 0 0 0 1 0 1 0 0 0 American Indian/Alaska Native 0 0 0 2 0 2 0 0 0 Pacific Islander 0 0 1 0 0 0 0 0 0 Other 0 0 0 0 1 0 0 0 0 *includes Non-Elderly Disabled, Mainstream One-Year, Mainstream Five-year, and Nursing Home Transition Table 24 – Race of Public Housing Residents by Program Type Data Source: PIC (PIH Information Center) Ethnicity of Residents Program Type Ethnicity Certificate Mod- Public Vouchers Rehab Housing Total Project - Tenant - Special Purpose Voucher based based Veterans Family Disabled Affairs Unification * Supportive Program Housing Hispanic 0 0 22 11 2 11 0 0 0 Not Hispanic 0 0 258 163 0 152 0 0 7 *includes Non-Elderly Disabled, Mainstream One-Year, Mainstream Five-year, and Nursing Home Transition Table 25 – Ethnicity of Public Housing Residents by Program Type Consolidated Plan DOVER 33 OMB Control No: 2506-0117 (exp. 06/30/2018) 39

Item 1. Demo Data Source: PIC (PIH Information Center) Consolidated Plan DOVER 34 OMB Control No: 2506-0117 (exp. 06/30/2018) 40

Item 1. Demo Section 504 Needs Assessment: Describe the needs of public housing tenants and applicants on the waiting list for accessible units: Most Section 504 requests are for wheelchair accessible units and requests for one-level units. The request of elderly tenants is for handrails to be installed in the bathrooms. Most immediate needs of residents of Public Housing and Housing Choice voucher holders Several families have requested additional locks on the entrance doors and windows to ensure their disabled children do not open the doors and windows and are able to exit the unit. There is also a challenge for Housing Choice Vouchers to find affordable housing that is in compliance with the City’s Housing Code and affordable housing that is accessible for persons with disabilities. How do these needs compare to the housing needs of the population at large The needs of Dover Housing Authority and the needs of the population at large are comparable in locating decent affordable housing for low and very income persons as well as the need for accessible housing units for persons with disabilities. Discussion Consolidated Plan DOVER 35 OMB Control No: 2506-0117 (exp. 06/30/2018) 41

Item 1. Demo NA-40 Homeless Needs Assessment – 91.205(c) Introduction: This section provides data on homelessness from a point in time count on January 24, 2024 conducted by the Housing Alliance of Delaware who is the lead agency of the Continuum of Care (CoC) for the State of Delaware. Over the next five years, the city will provide CDBG funding to homeless providers to reduce the risk of homelessness in the city. The data listed below was gathered for Kent County which incudes Dover. Homeless Needs Assessment Population Estimate the # of persons Estimate the # Estimate the Estimate the # Estimate the # experiencing homelessness experiencing # becoming exiting of days persons on a given night homelessness homeless homelessness experience each year each year each year homelessness Sheltered Unsheltered Persons in Households with Adult(s) and Child(ren) 103 2 325 214 84 128 Persons in Households with Only Children 0 0 0 0 0 4 Persons in Households with Only Adults 100 41 356 225 38 116 Chronically Homeless Individuals 28 13 48 18 5 N/A Chronically Homeless Families 1 0 15 7 4 N/A Veterans 10 1 17 10 3 150 Unaccompanied Child 0 0 0 0 0 0 Persons with HIV 3 0 6 2 1 N/A Table 26 - Homeless Needs Assessment Alternate Data Source Name: Housing Alliance of Delaware Data Source Comments: Consolidated Plan DOVER 36 OMB Control No: 2506-0117 (exp. 06/30/2018) 42

Item 1. Demo If data is not available for the categories "number of persons becoming and exiting homelessness each year," and "number of days that persons experience homelessness," describe these categories for each homeless population type (including chronically homeless individuals and families, families with children, veterans and their families, and unaccompanied youth): As of January 2024, Kent County, which includes Dover had an estimated 439 persons in all categories becoming homeless each year, and a total 399 persons in all categories exiting homelessness each year. The estimated number of days persons experienced homelessness in all categories was 128. For the estimated number of persons becoming homeless each year, 103 were persons with adults and children, 100 were adults only, and 10 were veterans. For the estimated number of persons exiting homelessness each year, 84 were adults and children, 38 were only adults, and 3 were veterans. For the number of days persons experienced homelessness, 128 were adults and children, 116 were adults only, and 150 were veterans. There were no chronically homeless or unaccompanied children in these categories. Consolidated Plan DOVER 37 OMB Control No: 2506-0117 (exp. 06/30/2018) 43

Item 1. Nature and Extent of Homelessness: (Optional) Race: Sheltered: Unsheltered (optional) White 0 0 Black or African American 0 0 Asian 0 0 American Indian or Alaska Native 0 0 Pacific Islander 0 0 Ethnicity: Sheltered: Unsheltered (optional) Hispanic 0 0 Not Hispanic 0 0 Data Source Comments: Estimate the number and type of families in need of housing assistance for families with children and the families of veterans. The 2024 Point in Time Count conducted by the Housing Alliance of Delaware for the State of Delaware extracted data for Kent County which includes Dover and estimated the number of specific populations that experienced homelessness during the year. There were 246 adults, 0 with only children, 28 chronically homeless families and 10 veterans that were homeless during the year. Describe the Nature and Extent of Homelessness by Racial and Ethnic Group. This information was not available by the Housing Alliance of Delaware. Describe the Nature and Extent of Unsheltered and Sheltered Homelessness. The estimated number of persons experiencing homelessness on any given night that were sheltered in all populations was 245, with 103 households with adults and children, and 100 with adults only with the highest numbers of the total population. There was a total of 43 unsheltered in all populations, with 2 households that were adults and children, 41 with adults only, and 13 that were chronically homeless, Discussion: The City of Dover fully supports the Housing Alliance of Delaware to end Chronic Homeless in Delaware. Although Dover’s rate of homelessness is considerably lower than the remainder of the State, there is still a lack of affordable housing and emergency shelters that serve the needs of the homeless population in Dover. Over the next five years, the city will provide CDBG assistance to homeless providers to assist in reducing chronic homelessness in Dover. Consolidated Plan DOVER 38 OMB Control No: 2506-0117 (exp. 06/30/2018) 44

Item 1. NA-45 Non-Homeless Special Needs Assessment - 91.205 (b,d) Introduction: The special needs population consists of persons that are elderly and frail and elderly; persons with mental, physical, and/or developmental disabilities; persons with alcohol or drug addiction; persons with HIV/AIDS and victims of domestic violence, sexual assault and stalking. Due to the high cost of living in the State of Delaware, it has become very challenging for this population to find decent affordable housing. The city will continue to provide support for agencies that serve this population and will continue to be a priority to service this population over the next five years. Describe the characteristics of special needs populations in your community: Based on 2017-2021 American Census Survey data, the population for the City of Dover is 39,491. Of that total, 8% are people that are age 65 and older. Individual data for persons with mental health, developmental disabilities, substance abuse and domestic violence was not available for the City of Dover. What are the housing and supportive service needs of these populations and how are these needs determined? Based on consultation from local housing providers that service the needs of these populations, the following has been determined: • A need for additional supportive services to assist persons with special needs • A need to incorporate universal design and accessibility standards to meet the needs of the disabled population • A need for permanent supportive housing to address the needs of the homeless and those at risk of becoming homeless. • A need for decent affordable rental housing that meets the City’s Housing Code to house people with special needs. Discuss the size and characteristics of the population with HIV/AIDS and their families within the Eligible Metropolitan Statistical Area: Based on data received from the Division of Health and Human Services, there are approximately 551 persons with HIV/AIDS living in Kent County as of March 2021. The highest population in the age of diagnoses is between 25-29 at 17.4% of the population in Delaware. African Americans rank at the highest rate of infection within the State at 64.2%. Discussion: Consolidated Plan DOVER 39 OMB Control No: 2506-0117 (exp. 06/30/2018) 45

Item 1. This section has been left blank intentionally. Consolidated Plan DOVER 40 OMB Control No: 2506-0117 (exp. 06/30/2018) 46

Item 1. NA-50 Non-Housing Community Development Needs – 91.215 (f) Describe the jurisdiction’s need for Public Facilities: The City funds facilities that service the special needs of the population such as homeless facilities through its CDBG allocation. Most of these facilities are older buildings that need maintenance and repair. Public Facility needs on a larger scale include additional parking facilities needed in the downtown area and renovations of city government buildings due to the aging of its buildings requiring several upgrades and overcrowding of employees due to lack of space. Long range plans include recreation facilities that will service the youth in our community, which include plans for a splash pad and a skate park. How were these needs determined? Scale projects that are not funded with CDBG funds, public facility needs are determined by City Subrecipients identify the needs for public facility improvements for projects that are funded with CDBG funds regarding physical improvements needed to their facilities. For other larger projects, Staff, Advisory Review Committees, Recreational Needs Assessments and a small group of citizens. Describe the jurisdiction’s need for Public Services: The city provides most of its public services through the CDBG program. Each program year, the city allocates 15% of its CDBG allocation towards public service activities. Due to homelessness in Dover being a high priority, the city has consistently provided CDBG funding to homeless providers to address this need. Crime Prevention is also another high priority public service need in the city which is addressed through grant funding from the police department, who recently hired cadets to do community policing in high crime areas of the city. How were these needs determined? Through the citizen participation process, the city prioritized information received from the community development needs stakeholder meetings in developing the Consolidated Plan and other initiatives from other non-profit agencies and housing providers. Through this process, funding priorities were established based on the needs identified and the availability of funding sources to address those needs. Consolidated Plan DOVER 41 OMB Control No: 2506-0117 (exp. 06/30/2018) 47

Item 1. Housing Market Analysis MA-05 Overview Housing Market Analysis Overview: The high cost of housing in Dover and Kent County continues to be a barrier to providing affordable owner-occupied and rental housing for low to moderate income persons. The city is working in conjunction with other housing providers and non-profit organizations on several initiatives and incentives that will promote homeownership and preserve the existing housing stock through the homeowner rehabilitation and emergency home repair programs. Consolidated Plan DOVER 42 OMB Control No: 2506-0117 (exp. 06/30/2018) 48

Item 1. MA-10 Number of Housing Units – 91.210(a)&(b)(2) Introduction Although there has been an increase in the construction of single-family housing in the City of Dover, there has been a decline in the development of rental housing. All residential properties by number of units Property Type Number % 1-unit detached structure 6,741 40.46% 1-unit, attached structure 2,595 15.58% 2-4 units 1,198 7.19% 5-19 units 3,637 21.83% 20 or more units 1,783 10.70% Mobile Home, boat, RV, van, etc 705 4.23% 16,659 100.00% Table 27 – Residential Properties by Unit Number Alternate Data Source Name: 2019-2023 ACS Data Source Comments: Unit Size by Tenure Owners Renters Number % Number % No bedroom 0 0.00% 181 2.20% 1 bedroom 84 1.16% 1,986 24.24% 2 bedrooms 4,347 59.81% 5,690 69.44% 3 or more bedrooms 2,837 39.03% 337 4.11% Total 7,268 100.00% 8,194 100.00% Table 28 – Unit Size by Tenure Alternate Data Source Name: 2019-2023 ACS Data Source Comments: Describe the number and targeting (income level/type of family served) of units assisted with federal, state, and local programs. The City of Dover is served by two public housing authorities: The Dover Housing Authority (DHA) and the Delaware State Housing Authority (DSHA). The two housing authorities operate public housing units within the City of Dover. Dover Housing Authority administers 190 Section 8 Housing Choice Vouchers with a total of 294 Public Housing Units and 77 Tax Credit Units. DSHA has 210 Housing Choice Vouchers, 250 Public Housing Units and 505 Tax Credit Units. The two housing authorities service the low and the very low-income families. The City of Dover provides CDBG funding to the Homeownership Consolidated Plan DOVER 43 OMB Control No: 2506-0117 (exp. 06/30/2018) 49

Item 1. Assistance Program that services persons that are 80% and below the Area Median Income by providing down payment assistance to first-time homebuyers who want to purchase affordable housing in the city. Provide an assessment of units expected to be lost from the affordable housing inventory for any reason, such as expiration of Section 8 contracts. There will not be a loss of units. Does the availability of housing units meet the needs of the population? The fact that there are 1,323 people on the waiting list for public housing and 2,783 people on the waiting list for Housing Choice Vouchers indicates there is a high demand for affordable housing in the City of Dover. These numbers indicate there is a high demand for affordable housing units. Describe the need for specific types of housing: Special needs housing for those that are handicapped, elderly, mentally challenged, suffering from substance abuse and individuals with HIV/AIDS continues to be a need. Most often this population is characterized as being a cost burden and paying over 50% of their income on housing. In addition, families with children that are low income continue to have a need for affordable housing due to overcrowding. Discussion The City’s goals are to continue to preserve the existing housing stock as well as increase the incentives to provide affordable housing for the populations identified. There are several initiatives in place to revitalize the Central Dover Target Area in low to moderate income areas that include constructing affordable housing, providing homeownership assistance and incentives for first time homebuyers who purchase properties in the target areas, and make homeowner repairs to homes found in violation of the City’s Housing Code. Consolidated Plan DOVER 44 OMB Control No: 2506-0117 (exp. 06/30/2018) 50

Item 1. MA-15 Housing Market Analysis: Cost of Housing - 91.210(a) Introduction Over the past 13 years, the median homme value has increased by 29.16% and the median rent has increased by 40.52% making it increasingly difficult for low income households to purchase or rent affordable housing. Cost of Housing Base Year: 2010 Most Recent Year: 2023 % Change Median Home Value $170,700 $248,500 29.16% Median Contract Rent $891 $1,252 40.52% Table 29 – Cost of Housing Alternate Data Source Name: 2019-2023 ACS 5-year estimates Data Source Comments: 2010 ACS 5-year estimates Rent Paid Number % Less than $500 729 9.14% $500-999 1,679 21.05% $1,000-1,499 3,335 41.81% $1,500-1,999 2,027 25.41% $2,000 or more 206 2.58% Total 7,976 100.00% Table 30 - Rent Paid Alternate Data Source Name: 2019-2023 ACS 5-year estimates Data Source Comments: Housing Affordability % Units affordable to Households Renter Owner earning 30% HAMFI 840 No Data 50% HAMFI 70 125 80% HAMFI 330 355 100% HAMFI No Data 230 Total 1,240 710 Table 31 – Housing Affordability Alternate Data Source Name: 2017-2021 CHAS Data Source Comments: Consolidated Plan DOVER 45 OMB Control No: 2506-0117 (exp. 06/30/2018) 51

Item 1. Monthly Rent Monthly Rent ($) Efficiency (no 1 Bedroom 2 Bedroom 3 Bedroom 4 Bedroom bedroom) Fair Market Rent $1,110 $1,117 $1,368 $1,928 $2,152 High HOME Rent $1,001 $1,074 $1,292 $1,484 $1,635 Low HOME Rent $786 $842 $1,011 $1,162 $1,302 Table 32 – Monthly Rent Data Source Comments: 2017-2021 CHAS Data Is there sufficient housing for households at all income levels? Housing is needed for all income levels but there is a greater need for affordable housing for low and very low income persons in the City of Dover. How is affordability of housing likely to change considering changes to home values and/or rents? According to the American Community Survey, Dover had 16,659 dwelling units in 2023 of which 7,268 were owner occupied. This represents a 10.7% increase in total units available from 2010 to 2023. Of the occupied units, 47% were owner occupied and 49.1% were rental units. The average mortgage cost increased by 1% to $1,693 per month. The average rent increased 1.29% from $965 in 2017 to $1,252 in 2023. With home values expected to rise over time, affordable housing will become an issue if production of affordable housing is not constructed over time. How do HOME rents / Fair Market Rent compare to Area Median Rent? How might this impact your strategy to produce or preserve affordable housing? The City of Dover and Dover Housing Authority do not receive HOME funds; however, the Fair Market Rent for a 2-bedroom rental unit is higher than the most recent median contract rent. This presents an issue for persons that do not live in subsidized housing that are low income and paying over 50% of their income on housing. With the lack of affordable rental housing, it will also be difficult for persons with Housing Choice Vouchers to find suitable housing Discussion The City of Dover is collaborating with other local housing providers on several initiatives to provide affordable housing in low to moderate income target areas as well as city-wide by providing homeownership assistance to first time home buyers who purchase properties within the City of Dover and designated target areas, provide real estate tax relief over a 4 year period for persons that purchase properties within the designated target area, receive a transfer tax rebate for properties upon issuance of a Certificate of Occupancy for properties purchased after March 1, 2015 within the designated target area, and partnering with non-profits that will be constructing affordable housing for low income persons over the next few years Consolidated Plan DOVER 46 OMB Control No: 2506-0117 (exp. 06/30/2018) 52

Item 1. MA-20 Housing Market Analysis: Condition of Housing – 91.210(a) Introduction Assessing housing conditions in the City of Dover can provide the basis for developing policies and programs to maintain and preserve the quality of housing stock. The American Community Survey (ACS) defines a selected condition as owner or renter occupied housing units having at least one of the following conditions: 1) lacking complete plumbing facilities; 2) lacking complete kitchen facilities; 3) more than one occupant per room; and 4) selected monthly housing costs greater than 30 percent of household income. Definitions HUD defines substandard housing which is dilapidated without operable indoor plumbing or a usable flush toilet or bathtub inside the unit for the family's exclusive use, without electricity or with inadequate or unsafe electrical service, without a safe or adequate source of heat, and should but does not have a kitchen, or has otherwise been declared unfit for habitation by the government. HUD defines standard housing as decent, safe, sanitary and in good repair. The structure shall be maintained in good repair, structurally sound and in a sanitary condition so that it does not adversely affect the occupants' health and safety as outlined in the 2009 International Property Maintenance Code adopted by the City of Dover. The City considers the housing unit to be in substandard condition but suitable for rehabilitation when it has one or more major and /or critical defects but can still be repaired for a reasonable amount. Condition of Units Condition of Units Owner-Occupied Renter-Occupied Number % Number % With one selected Condition 1,905 26.21% 4,677 57.08% With two selected Conditions 15 0.21% 115 1.40% With three selected Conditions 0 0.00% 10 0.12% With four selected Conditions 0 0.00% 0 0.00% No selected Conditions 5,348 73.58% 3.392 41.40% Total 7,268 100.00% 8,194 100.00% Table 33 - Condition of Units Alternate Data Source Name: 2017-2023 ACS Data Source Comments: Consolidated Plan DOVER 47 OMB Control No: 2506-0117 (exp. 06/30/2018) 53

Item 1. Year Unit Built Year Unit Built Owner-Occupied Renter-Occupied Number % Number % 2000 or later 1,495 20.38% 1,975 25.82% 1980-1999 2,110 28.77% 2,705 35.36% 1950-1979 2,260 30.81% 1,885 24.64% Before 1940 445 6.07% 545 7.12% Total 7,335 100.00% 7,650 100.00% Table 34 – Year Unit Built Alternate Data Source Name: 2017-2021 CHAS Data Source Comments: Risk of Lead-Based Paint Hazard Risk of Lead-Based Paint Hazard Owner-Occupied Renter-Occupied Number % Number % Total Number of Units Built Before 1980 3,730 50.85% 2,970 38.82% Housing Units build before 1980 with children present 270 3.68% 460 6.01% Table 35 – Risk of Lead-Based Paint Alternate Data Source Name: 2013-2017 ACS Data Source Comments: Vacant Units Suitable for Not Suitable for Total Rehabilitation Rehabilitation Vacant Units 95 30 125 Abandoned Vacant Units 0 0 0 REO Properties 0 0 0 Abandoned REO Properties 0 0 0 Table 36 - Vacant Units Alternate Data Source Name: Dept of Planning & Inspections Data Source Comments: Data for abandoned vacant units, REO properties and abandoned REO properties was not available. Need for Owner and Rental Rehabilitation Homeowner Rehabilitation has been identified as a high priority in determining the needs of the City of Dover by stakeholders from the City’s first public hearing. The City’s central Target Area has the highest percentage of older homes throughout the city which needs homeowner rehabilitation assistance and rental rehabilitation. Consolidated Plan DOVER 48 OMB Control No: 2506-0117 (exp. 06/30/2018) 54

Item 1. Estimated Number of Housing Units Occupied by Low or Moderate Income Families with LBP Hazards Among owner-occupied units, 51% or 3,730 units were constructed before 1980 with 4% of these units having children present, and 2,970 or 39% of rental units were constructed prior to 1980 with 6% of the units having children present is a high risk for lead based paint for housing units constructed at the time. There are approximately 8,120 households that are 80% and below the Area Median Income representing 53% of all households. Based on this number and the percentages of owner and renter occupied households with potential lead –based paint hazards, there are potentially 4,060 units occupied by low or moderate income families that contain lead based paint hazards. Discussion Consolidated Plan DOVER 49 OMB Control No: 2506-0117 (exp. 06/30/2018) 55

Item 1. MA-25 Public and Assisted Housing – 91.210(b) Introduction Dover Housing Authority (DHA) is the local Housing Authority that services the City of Dover. DHA owns and operates a total of 294 public housing and 77 Tax Credit units. Delaware State Housing Authority operates one public housing development in the City of Dover that has 100 housing units. Totals Number of Units Program Type Certificate Mod-Rehab Public Vouchers Housing Total Project -based Tenant -based Special Purpose Voucher Veterans Family Disabled Affairs Unification * Supportive Program Housing # of units vouchers available 294 190 0 0 240 # of accessible units *includes Non-Elderly Disabled, Mainstream One-Year, Mainstream Five-year, and Nursing Home Transition Table 37 – Total Number of Units by Program Type Alternate Data Source Name: Dover Housing Authority Data Source Comments: Describe the supply of public housing developments: Describe the number and physical condition of public housing units in the jurisdiction, including those that are participating in an approved Public Housing Agency Plan: Dover Housing Authority provides rental assistance through Section 8 and public housing units as well as operates and manages two public housing units for senior citizens and persons that are disabled. DHA manages 5 scattered site areas throughout Dover and maintains and operate 77 tax credit units. Consolidated Plan DOVER 50 OMB Control No: 2506-0117 (exp. 06/30/2018) 56

Item 1. DHA has identified the physical condition of their properties in their 5-year Physical Needs Assessment. They are in the process of determining the projects with the greatest need and fully renovating and upgrading those properties that have been prioritized with the greatest need. Consolidated Plan DOVER 51 OMB Control No: 2506-0117 (exp. 06/30/2018) 57

Item 1. Public Housing Condition Public Housing Development Average Inspection Score Dover Housing Authority 0 Table 38 - Public Housing Condition Describe the restoration and revitalization needs of public housing units in the jurisdiction: The needs of the housing authority as identified in DHA’s 5-year plan include: • Upgrade of HVAC system at Hayes Circle, Manchester Court, Derby Estates and Queen Manor • Restriping and repaving all public housing parking areas • Roofing upgrades • Kitchen floor upgrades • Bathroom upgrades Describe the public housing agency's strategy for improving the living environment of low- and moderate-income families residing in public housing: DHA completes an annual and 5-year plan in which they conduct a Physical Needs Assessment of their public housing inventory and determine the projects need to be completed in order of priority. Within the 5-year plan, they determine the importance and rank of each project. The funding they use to improve the living environment of their families comes from their Capital Fund Program and their Operating Subsidy funds. Discussion: This section has been left blank intentionally. Consolidated Plan DOVER 52 OMB Control No: 2506-0117 (exp. 06/30/2018) 58

Item 1. MA-30 Homeless Facilities and Services – 91.210(c) Introduction The City of Dover is committed to the challenge to end homelessness and attends the Continuum of Care meetings to assist in the implementation plan to end chronic homelessness and educate the community about the need and advantages of ending chronic homelessness. The city has been consistent by providing support and CDBG funding to housing providers that service the homeless population. Facilities and Housing Targeted to Homeless Households Emergency Shelter Beds Transitional Permanent Supportive Housing Housing Beds Beds Year Round Beds Voucher / Current & New Current & New Under (Current & New) Seasonal / Development Overflow Beds Households with Adult(s) and Child(ren) 36 16 53 62 0 Households with Only Adults 102 0 30 186 0 Chronically Homeless Households 0 0 0 177 0 Veterans 0 0 0 25 0 Unaccompanied Youth 0 0 0 0 0 Table 39 - Facilities and Housing Targeted to Homeless Households Alternate Data Source Name: Housing Alliance of Delaware Data Source Comments: Consolidated Plan DOVER 53 OMB Control No: 2506-0117 (exp. 06/30/2018) 59

Item 1. Describe mainstream services, such as health, mental health, and employment services to the extent those services are use to complement services targeted to homeless persons Mainstream services are available throughout the State of Delaware for homeless persons including Kent County which services Dover. The homeless housing providers that shelter the homeless work in connection with mainstream service providers to address the needs of the homeless. Services such as medical care, substance abuse counseling and mental health counseling are available through individual medical insurance which can be applied for at the local State Service Center. They get employment services through the Department of Labor and income support such as Social Security, child support and TANF through the Social Security Administration and the local State Service Center. List and describe services and facilities that meet the needs of homeless persons, particularly chronically homeless individuals and families, families with children, veterans and their families, and unaccompanied youth. If the services and facilities are listed on screen SP-40 Institutional Delivery Structure or screen MA-35 Special Needs Facilities and Services, describe how these facilities and services specifically address the needs of these populations. Salvation Army - This organization carries out crisis alleviation through the administration of Federal Emergency Management Agency (FEMA) shelter, utilities, rent and mortgage assistance programs. It also coordinates and refers people to shelters, motels, and local service providers. Its youth activities included: The After School Achievement Program (ASAP), summer camp, Alternative School, Christmas toy and food donations. The adult programs include nursing home and prison visitation, daily hot meal program, home league mothers support, GED education and basketball leagues. Shepherd Place, Inc. - This agency operates a relief shelter for homeless women and children only. It provides emergency food baskets, information and referral services, and transportation for in-house clients. The services are available on a 24-hour basis, the average stay at the shelter is 2-3 weeks, but does not exceed 30 days. The facility has 20 beds and is located just beyond the city limits. People’s Place II – (Formerly known as Whatcoat Social Service Agency: Ruth M. Dorsey Shelter) This agency operates a relief shelter for homeless persons. It provides emergency food baskets, information and referral services, and transportation for in-house clients. The services are available on a 24-hour basis, the average stay at the shelter is 2-3 weeks, but does not exceed 30 days. This facility has 46 beds. Dover Interfaith Mission for Housing – This agency is a non-profit organization that operates a shelter for homeless men and provides services to the homeless to assist in obtaining permanent affordable housing. Elizabeth Murphey School - This agency is a non-profit group home that services up to 40 neglected and abused children that have been identified as being homeless on an annual basis. Consolidated Plan DOVER 54 OMB Control No: 2506-0117 (exp. 06/30/2018) 60

Item 1. MA-35 Special Needs Facilities and Services – 91.210(d) Introduction There are some individuals in the special needs population that may have difficulties in finding social service facilities as well as supportive services and housing services due to their needs. HUD’s definition of the special needs population includes the frail and non-frail elderly, persons with physical, mental, or behavioral disabilities, and persons with HIV/AIDS, persons with alcohol or drug addictions. Including the elderly, frail elderly, persons with disabilities (mental, physical, developmental), persons with alcohol or other drug addictions, persons with HIV/AIDS and their families, public housing residents and any other categories the jurisdiction may specify, and describe their supportive housing needs The special needs population identified need the following supportive housing needs: • Increase in supportive services that allow persons with special needs to live independently • Increase in supply of affordable, accessible units for sale and rent • Increase in government funding for homeless services, particularly emergency shelters • Increase in affordable, assisted living choices for seniors Describe programs for ensuring that persons returning from mental and physical health institutions receive appropriate supportive housing There are few programs in Dover that provide supportive housing for persons with mental and physical health conditions. Most of these programs are provided by the Division of Health and Social Services throughout the State of Delaware. • Serenity Place is a substance abuse treatment facility located in Dover that provides residential long-term treatment and has 10 licensed beds. • National Alliance of Mental Illness (NAMI) is a non-profit organization which helps mentally ill persons and their families cope with problems created by the illness. In addition, they develop affordable housing for persons with chronic mental illness. NAMI services all three counties in Delaware. Consolidated Plan DOVER 55 OMB Control No: 2506-0117 (exp. 06/30/2018) 61

Item 1. • Division of Substance Abuse and Mental Health assist those who suffer from mental illness and substance abuse access treatment and prevention for mental health substance abuse conditions and serves all three counties in Delaware. • Dover Behavioral Health facility provides inpatient and outpatient treatment to adolescents and adults who suffer from mental health conditions and addictions Specify the activities that the jurisdiction plans to undertake during the next year to address the housing and supportive services needs identified in accordance with 91.215(e) with respect to persons who are not homeless but have other special needs. Link to one-year goals. 91.315(e) The city will continue to provide CDBG funding for the Homeowner Rehabilitation and Emergency Home Repair programs to assist those that are 80% and below the area median income as well as those that are elderly and disabled who need repairs to their homes. For entitlement/consortia grantees: Specify the activities that the jurisdiction plans to undertake during the next year to address the housing and supportive services needs identified in accordance with 91.215(e) with respect to persons who are not homeless but have other special needs. Link to one-year goals. (91.220(2)) Same as above. Consolidated Plan DOVER 56 OMB Control No: 2506-0117 (exp. 06/30/2018) 62

Item 1. MA-40 Barriers to Affordable Housing – 91.210(e) Negative Effects of Public Policies on Affordable Housing and Residential Investment At this time, it is the City of Dover’s contention that there are no significant barriers to affordable housing which describes dwelling units whose total cost is deemed affordable to those who have a median income. However, there are few constraints that may be an obstacle in constructing affordable housing such as development impact fees which increase the cost to develop new housing, land use policies outlined in the City’s Comprehensive Plan, and building and zoning codes. Unlike many communities, Dover has not practiced “exclusionary zoning” where most of the undeveloped land is designated for large lot single family detached homes. To the contrary, The Dover Plan (Dover’s Comprehensive Plan) designates a large portion of undeveloped lands for medium density housing, and a smaller but significant portion for high density housing. The land is subsequently zoned accordingly, permitting a range of residential densities and housing types. The most recent 2019 Comprehensive Plan Update is completed and was adopted in January 2019. The Land Development Plan specifically identifies a range of residential land uses from low density to high density throughout the city. The plan continues to recommend a range of residential densities and focuses specifically on housing in one chapter. The City of Dover is currently working on several revitalization and housing initiatives in collaboration with other local housing providers that will assist in reducing the barriers to affordable housing. The following is an outline of incentives and goals to promote affordable housing in the City of Dove within designated target areas. Consolidated Plan DOVER 57 OMB Control No: 2506-0117 (exp. 06/30/2018) 63

Item 1. MA-45 Non-Housing Community Development Assets – 91.215 (f) Introduction In 2023, Dover’s median income for all household and family types was lower than the Kent County median. The current unemployment rate in Dover is 7.9%. Among the employed, 28% work for educational services, health care and social assistance. Fourteen 14% of the workforce is employed in lower-paying service occupations. Higher education is directly related to earnings potential and 20% of Dover residents hold a bachelor’s degree and another third have some college, including an associate degree. Adults with no high school diploma or equivalent earn 66% less an adult with a bachelor’s degree in Dover and 50% less an adult with a Graduate or Professional degree. One in ten Dover adults have not completed High School. Economic Development Market Analysis Business Activity Business by Sector Number of Number of Jobs Share of Workers Share of Jobs Jobs less workers Workers % % % Agriculture, Mining, Oil & Gas Extraction 0 0 0.00% 0.00% 0 Arts, Entertainment, Accommodations 1,842 301 10.45% 1.19% (1,541) Construction 787 1,235 4.46% 4.89% 448 Education and Health Care Services 4,899 8,498 27.79% 33.62% 3,599 Finance, Insurance, and Real Estate 982 1,043 5.57% 4.13% 61 Information 136 738 .077% 2.92% 602 Manufacturing 1,307 1,671 7.41% 6.61% 364 Other Services 926 1,074 5.25% 4.25% 148 Professional, Scientific, Management Services 1,623 1,663 9.21% 6.58% 40 Public Administration 1,130 5,454 6.41% 21.58% 4,324 Retail Trade 2,464 3,000 13.98% 11.87% 536 Transportation and Warehousing 1,236 217 7.01% 0.86% (1,019) Wholesale Trade 298 383 1.69% 1.52% 85 Total 17,630 25,277 100.00% 100.00% 7,647 Table 40 - Business Activity Consolidated Plan DOVER 58 OMB Control No: 2506-0117 (exp. 06/30/2018) 64

Item 1. Alternate Data Source Name: 2019-20237 ACS Data Source Comments: 2019-2023 ACS Five-Year Estimates, 2011 Longitudinal Employer- Household Dynamics (jobs) Consolidated Plan DOVER 59 OMB Control No: 2506-0117 (exp. 06/30/2018) 65

Item 1. Labor Force Total Population in the Civilian Labor Force 19,805 Civilian Employed Population 16 years and over 12,409 Unemployment Rate 7.94% Unemployment Rate for Ages 16-24 13.67% Unemployment Rate for Ages 25-65 5.61% Table 41 - Labor Force Alternate Data Source Name: 2019-2023 ACS Data Source Comments: Occupations by Sector Number of People Management, business and financial 5,908 Farming, fisheries and forestry occupations 0 Service 3,491 Sales and office 3,917 Construction, extraction, maintenance and repair 1,291 Production, transportation and material moving 3,023 Table 42 – Occupations by Sector Alternate Data Source Name: 20119-2023 ACS Data Source Comments: Travel Time Travel Time Number Percentage < 30 Minutes 11,541 71% 30-59 Minutes 2,730 17% 60 or More Minutes 1,973 12% Total 16,244 100% Table 43 - Travel Time Alternate Data Source Name: 2019-2023 ACS Data Source Comments: Consolidated Plan DOVER 60 OMB Control No: 2506-0117 (exp. 06/30/2018) 66

Item 1. Education: Educational Attainment by Employment Status (Population 16 and Older) Educational Attainment In Labor Force Civilian Employed Unemployed Not in Labor Force Less than high school graduate 997 107 534 High school graduate (includes equivalency) 4,098 271 981 Some college or Associate’s degree 4,536 258 1,065 Bachelor's degree or higher 3,977 173 754 Table 44 - Educational Attainment by Employment Status Alternate Data Source Name: 2019-2023 ACS Data Source Comments: Educational Attainment by Age Age 18–24 yrs 25–34 yrs 35–44 yrs 45–65 yrs 65+ yrs Less than 9th grade 34 110 0 12 67 9th to 12th grade, no diploma 310 93 179 365 164 High school graduate, GED, or alternative 702 796 704 1,370 1,163 Some college, no degree 1,636 784 452 569 540 Associate's degree 133 332 159 238 75 Bachelor's degree 232 524 254 458 413 Graduate or professional degree 13 115 222 423 587 Table 45 - Educational Attainment by Age Alternate Data Source Name: 2019-2023 ACS Data Source Comments: Educational Attainment – Median Earnings in the Past 12 Months Educational Attainment Median Earnings in the Past 12 Months Less than high school graduate $33,438 High school graduate (includes equivalency) $34,269 Some college or Associate's degree $40,933 Bachelor's degree $50,795 Graduate or professional degree $67,784 Table 46 – Median Earnings in the Past 12 Months Alternate Data Source Name: 2013-2017 ACS Consolidated Plan DOVER 61 OMB Control No: 2506-0117 (exp. 06/30/2018) 67

Item 1. Data Source Comments: Based on the Business Activity table above, what are the major employment sectors within your jurisdiction? Arts, Entertainment, Accommodations Education & Health Care Services Manufacturing Retail Trade Describe the workforce and infrastructure needs of the business community: Health Care, Education, Tourism and Hospitality are placing a growing demand on the workforce. It is essential that the educational programs available provide a well-trained and available workforce for these growing industries. Describe any major changes that may have an economic impact, such as planned local or regional public or private sector investments or initiatives that have affected or may affect job and business growth opportunities during the planning period. Describe any needs for workforce development, business support or infrastructure these changes may create. Dover’s designation as a Downtown Development District has already led to increased interest by developers in the City’s priority redevelopment target area. The City of Dover is one of the partners in the Restoring Central Dover project where NeighborGood Partners is the lead agency/organization. The initiatives developed under the grant for this project will have a direct impact on the areas surrounding Downtown Dover targeted for commercial and residential redevelopment. The Garrison Oak Technology Park has been completed with the installation of roads, curbs, a water tower, water, sewer, gas, electric and fiber optic services have made this a very attractive location for businesses interested in relocating or expanding operations in Dover. How do the skills and education of the current workforce correspond to employment opportunities in the jurisdiction? Based on the training provided by our local high school and higher education institutions, the current workforce has the skills and education needed to take advantage of current employment opportunities. Describe any current workforce training initiatives, including those supported by Workforce Investment Boards, community colleges and other organizations. Describe how these efforts will support the jurisdiction's Consolidated Plan. Consolidated Plan DOVER 62 OMB Control No: 2506-0117 (exp. 06/30/2018) 68

Item 1. Delaware State University, Wilmington University and Delaware Technical and Community College offer on-going and specialized training opportunities through their Workforce Development and Community Education programs designed to meet the technology changes and needs of local employers. DTCC course offerings include computer training, health care and “green training programs” from solar technology to automated building management. Delaware State University In addition to offering computer and health care education opportunities has a School of Business that offers undergraduate and graduate degrees in business and economics. Polytech High School offers a variety of adult education courses and vocational training for high school students. These educational institutions support the jurisdiction’s consolidated plan by providing a well-trained workforce in a variety of skill sets required by local employers. Does your jurisdiction participate in a Comprehensive Economic Development Strategy (CEDS)? Yes If so, what economic development initiatives are you undertaking that may be coordinated with the Consolidated Plan? If not, describe other local/regional plans or initiatives that impact economic growth. The current CEDS plan developed by the State of Delaware was submitted to the US Economic Development Administration in February 2015. Although the City of Dover does not have a project currently listed, projects may be added as the need arises. The previous CEDS document listed the infrastructure improvements at the Garrison Oak Technology Park as the state’s highest priority CEDS project. Discussion This section left blank intentionally Consolidated Plan DOVER 63 OMB Control No: 2506-0117 (exp. 06/30/2018) 69

Item 1. MA-50 Needs and Market Analysis Discussion Are there areas where households with multiple housing problems are concentrated? (include a definition of "concentration") The Census Bureau defines an area of concentration as a neighborhood or development in which more than 30% of the population has a common race, ethnicity or income. HUD defines a low and moderate income area where at least 51% of the residents are low and moderate income. Areas of concentration for low income households are significant because they often experience multiple housing problems to a much greater degree than the population in general. Are there any areas in the jurisdiction where racial or ethnic minorities or low-income families are concentrated? (include a definition of "concentration") The largest minority group in Dover is the African-American community. This community is in two major areas. The first area is the historically African American settlement area. These areas were originally laid out and developed by African Americans, included in this category are Lincoln Park, Northwest Dover Heights, The College Settlement on State College Road and the western edges of Central Dover. The second area is dominated by the public housing developments and subsidized private developments, which have attracted a large number of minority residents. Included in this category are Capital Green, Whatcoat Apartments, Simon Circle, and Manchester Square. In the City of Dover, HUD has designated those Census Block groups, which have greater than a 51% concentration of low-moderate income persons. The areas within City limits are limited to Block Group 413-01, 412-01 and 410-02. What are the characteristics of the market in these areas/neighborhoods? Many of the homes located within the referenced census tracts are older single-family homes that were constructed before 1950 and from 1950-1979. In the Central Dover Target Area, many of the residents face a considerable housing cost burden with 81% of renters in the area paying more than 30% of their income towards rent. In addition, 75% of properties in this area are occupied by renters with only a 25% homeownership rate. Are there any community assets in these areas/neighborhoods? Yes. The City of Dover Downtown Business District is in the Central Dover Target area and within a short distance of low income block groups. Local and State government buildings and the public library are also centrally located within these areas. Are there other strategic opportunities in any of these areas? Consolidated Plan DOVER 64 OMB Control No: 2506-0117 (exp. 06/30/2018) 70

Item 1. As mentioned early, there are several revitalization projects underway that will preserve the existing housing stock by rehabilitating older properties in the designated target areas, increase homeownership by providing down payment and rehabilitation assistance to first time homebuyers who purchase properties in the designated target areas, construct affordable housing, provide transfer and real estate transfer tax relief, strengthen the Downtown business community by waiving business licenses fees and offer façade improvement grants to help business owners improve their storefronts, and receive up to 20% cash rebate for qualifying construction projects. Consolidated Plan DOVER 65 OMB Control No: 2506-0117 (exp. 06/30/2018) 71

Item 1. MA-60 Broadband Needs of Housing occupied by Low- and Moderate-Income Households - 91.210(a)(4), 91.310(a)(2) Describe the need for broadband wiring and connections for households, including low- and moderate-income households and neighborhoods. The need for broadband connections is essential to thrive in today's economy. Students need broadband to access the internet to do their homework and apply to college. Working families need it to apply for jobs and access various government services, and seniors are increasingly reliant on broadbrand to connect to telehealth. Describe the need for increased competition by having more than one broadband Internet service provider serve the jurisdiction. There needs to be more than one internet service provider in the area so people can compare costs that are affordable to meet the needs of their families. If there is only one provider in the area, there is no competition, and the consumer can be charged whatever the rate is for the services they may need. Consolidated Plan DOVER 66 OMB Control No: 2506-0117 (exp. 06/30/2018) 72

Item 1. MA-65 Hazard Mitigation - 91.210(a)(5), 91.310(a)(3) Describe the jurisdiction’s increased natural hazard risks associated with climate change. Any natural disaster will have a significant impact on the most vulnerable population. The homeless population will increase significantly, and healthcare needs will go unmet. Describe the vulnerability to these risks of housing occupied by low- and moderate-income households based on an analysis of data, findings, and methods. In the City of Dover, 6.4% of households that are 0-30% of the area median income are paying greater than 50% of their income on housing. If a natural disaster were to occur, this population would become homeless. Consolidated Plan DOVER 67 OMB Control No: 2506-0117 (exp. 06/30/2018) 73

Item 1. Strategic Plan SP-05 Overview Strategic Plan Overview The Consolidated Plan and the Strategic Plan were prepared in compliance with federal regulations requiring a Consolidated Plan to be completed every five years. An analysis of the population information with priority needs and goals has been prepared to guide the City’s Community Development Block Grant Program over the next five years. The Strategic Plan will outline the goals and objectives to be completed over the next five years that will service low to moderate income people in the City of Dover. The following lists the priority and community development needs identified for the next five years: • Homeless Needs • Public Service Needs • Homeownership Assistance • Homeowner Rehabilitation Consolidated Plan DOVER 68 OMB Control No: 2506-0117 (exp. 06/30/2018) 74

Item 1. SP-10 Geographic Priorities – 91.215 (a)(1) Geographic Area Table 47 - Geographic Priority Areas 1 Area Name: Dover City Limits Area Type: City-wide Other Target Area Description: City-wide HUD Approval Date: % of Low/ Mod: Revital Type: Other Revital Description: Identify the neighborhood boundaries for this target area. Include specific housing and commercial characteristics of this target area. How did your consultation and citizen participation process help you to identify this neighborhood as a target area? Identify the needs in this target area. What are the opportunities for improvement in this target area? Are there barriers to improvement in this target area? 2 Area Name: Downtown Target Area Area Type: Local Target area Other Target Area Description: HUD Approval Date: % of Low/ Mod: Revital Type: Housing Other Revital Description: Identify the neighborhood boundaries for this target area. Include specific housing and commercial characteristics of this target area. How did your consultation and citizen participation process help you to identify this neighborhood as a target area? Identify the needs in this target area. What are the opportunities for improvement in this target area? Consolidated Plan DOVER 69 OMB Control No: 2506-0117 (exp. 06/30/2018) 75

Item 1. Are there barriers to improvement in this target area? General Allocation Priorities Describe the basis for allocating investments geographically within the jurisdiction (or within the EMSA for HOPWA) The City of Dover is a small entitlement community that only receives CDBG funding. The majority of CDBG funding will have an impact on low to moderate income persons city-wide that entails providing funding to homeless shelters for operating cost and maintenance cost, and homeless providers that will provide temporary and permanent supportive housing to those that are at risk of becoming homeless. The city will continue to provide funding for the housing rehabilitation and emergency home repair programs that will serve low to moderate income person’s city wide. The city has focused on providing down payment assistance along with other incentives the city is offering to qualifying families that purchase affordable housing within the designated target area. In addition, the city will geographically coordinate CDBG funding for renovations to existing vacant housing that will be sold to low-income persons and will preserve the existing housing stock in the City of Dover. The city has effectively affirmatively furthered fair housing by creating a balance serving low to moderate income persons in impacted and non-impacted areas throughout the city. Consolidated Plan DOVER 70 OMB Control No: 2506-0117 (exp. 06/30/2018) 76

Item 1. SP-25 Priority Needs - 91.215(a)(2) Priority Needs Table 48 – Priority Needs Summary 1 Priority Need Homelessness Name Priority Level High Population Extremely Low Low Large Families Families with Children Chronic Homelessness Individuals Families with Children Mentally Ill veterans Persons with HIV/AIDS Elderly Frail Elderly Geographic Downtown Target Area Areas Affected City-wide Associated HP-1 Homeless/Prevention Goals HP -2 Homeless Prevention PF-4 Public Facility Improvements Description The city will provide funding to support homeless providers to emergency shelters for operations and maintenance costs. Basis for Although the City of Dover has the lowest population of homelessness in the Relative State of Delaware, there remains a high need to serve this population in the Priority city. There is a shortage of resources and available emergency shelters in Dover. 2 Priority Need Homeowner Rehabilitation Name Priority Level High Population Extremely Low Low Moderate Large Families Families with Children Elderly Consolidated Plan DOVER 71 OMB Control No: 2506-0117 (exp. 06/30/2018) 77

Item 1. Geographic Downtown Target Area Areas Affected City-wide Associated AH-2 Affordable Housing Goals AH-3 Affordable Housing Description To preserve the existing housing stock in the City by bringing housing found in violation of the City’s Housing Code up to standard conditions. Basis for Based on the Community Development Needs survey and meeting with focus Relative groups, homeowner rehabilitation needs were determined to be a high priority Priority in the City of Dover. 3 Priority Need Homeownership Assistance Name Priority Level High Population Extremely Low Low Moderate Large Families Families with Children Elderly Geographic Downtown Target Area Areas Affected City-wide Associated AH-1 Affordable Housing Goals Description Homeownership Assistance includes down payment and settlement assistance to first-time homebuyers who purchase affordable housing in the City of Dover. Basis for There is a high demand for affordable housing in the City of Dover, especially Relative for low to moderate income persons Priority Narrative (Optional) Consolidated Plan DOVER 72 OMB Control No: 2506-0117 (exp. 06/30/2018) 78

Item 1. SP-30 Influence of Market Conditions – 91.215 (b) Influence of Market Conditions Affordable Market Characteristics that will influence Housing Type the use of funds available for housing type Tenant Based The Dover Housing Authority administers the Section 8 Housing Choice Rental Assistance Vouchers for rental assistance in Dover. Due to lack of affordable rental (TBRA) housing in Dover and the landlord’s unwillingness to rent to Section 8 tenants, it is very difficult to obtain affordable housing. The City’s goals are to support developers who construct affordable rental housing and to preserve the existing rental housing. TBRA for Non- Homeless Special Needs New Unit At the present time, there is more of a focus on existing housing rehabilitation Production than new construction due to the cost of land, infrastructure improvements required for development of land and construction and accessibility standards to construct affordable housing Rehabilitation The city will continue to provide funding for the Homeowner Rehabilitation Program due to the high demand in the city, especially for older housing stock. Homeowner rehab continues to be a top priority in determining community development needs throughout the Consolidated Plan process every five years. Acquisition, CDBG funds can be used as gap financing for down payment assistance to including purchase affordable housing and used to preserve existing housing acquired by preservation housing providers and in need of renovations before selling to a low to moderate income family. Table 49 – Influence of Market Conditions Consolidated Plan DOVER 73 OMB Control No: 2506-0117 (exp. 06/30/2018) 79

Item 1. SP-35 Anticipated Resources - 91.215(a)(4), 91.220(c)(1,2) Introduction The City of Dover only receives the Community Development Block Grant. Anticipated Resources Program Source of Uses of Funds Expected Amount Available Year 1 Expected Narrative Description Funds Annual Program Prior Year Total: Amount Allocation: Income: $ Resources: $ Available $ $ Remainder of ConPlan $ CDBG public - Acquisition The expected amount includes a federal Admin and reduction in grant funding over a Planning four-year period. Economic Development Housing Public Improvements Public Services 300,000 18,000 0 $318,000 12,000.000 Table 50 - Anticipated Resources Explain how federal funds will leverage those additional resources (private, state and local funds), including a description of how matching requirements will be satisfied There is not a match requirement for CDBG funds; however, sub-recipient agencies that were funded have additional resources to supplement their projects. In addition, there are several initiatives and investment projects in the City where CDBG funds will be used as an additional resource to supplement funding these projects. Consolidated Plan DOVER 74 OMB Control No: 2506-0117 (exp. 06/30/2018) 80

Item 1. If appropriate, describe publically owned land or property located within the jurisdiction that may be used to address the needs identified in the plan NeighborGood Partners and Habitat for Humanity have purchased several lots in the Restoring Central Downtown area that will be used to construct affordable housing. Milford Housing Development Corporation will utilize CDBG funds to complete Emergency Home Repairs and major home renovations throughout the city for households that are low to moderate income. Discussion This section has been left blank intentionally. Consolidated Plan DOVER 75 OMB Control No: 2506-0117 (exp. 06/30/2018) 81

Item 1. SP-40 Institutional Delivery Structure – 91.215(k) Explain the institutional structure through which the jurisdiction will carry out its consolidated plan including private industry, non-profit organizations, and public institutions. Responsible Entity Responsible Entity Role Geographic Area Type Served Dover Government Planning Jurisdiction Dover Housing PHA Public Housing Jurisdiction Authority Delaware State PHA Non-homeless special State Housing Authority needs Public Housing Rental Delaware Continuum of Non-profit Homelessness State Care organizations NeighborGood Partners Non-profit Ownership State organizations Milford Housing Non-profit Ownership State Development organizations Rental Corporation Central Delaware Non-profit Homelessness Jurisdiction Housing Collaborative organizations Table 51 - Institutional Delivery Structure Assess of Strengths and Gaps in the Institutional Delivery System The City of Dover administers the Community Development Block Program (CDBG) and provides funding to agencies that service the needs of the very low and low to moderate income persons within the City of Dover. These services include providing aid to the homeless, housing rehabilitation, homeownership assistance and housing counseling. The main gap that exists in the Institutional Delivery System is the lack of affordable rental housing. The public housing waiting list for Dover Housing Authority has 1,323 applicants and 2,783 applicants on the Section 8 waiting list. The average person remains on the waiting list for up to 4 years, which increases the risk of homelessness and suffers from a severe housing cost burden paying over 50% of their income in rent. Availability of services targeted to homeless persons and persons with HIV and mainstream services Consolidated Plan DOVER 76 OMB Control No: 2506-0117 (exp. 06/30/2018) 82

Item 1. Homelessness Prevention Available in the Targeted to Targeted to People Services Community Homeless with HIV Homelessness Prevention Services Counseling/Advocacy X X X Legal Assistance X Mortgage Assistance X Rental Assistance X X X Utilities Assistance X X Street Outreach Services Law Enforcement X Mobile Clinics X X Other Street Outreach Services X X X Supportive Services Alcohol & Drug Abuse X X X Child Care X Education X Employment and Employment Training X Healthcare X X HIV/AIDS X Life Skills X X Mental Health Counseling X X Transportation X Other Table 52 - Homeless Prevention Services Summary Describe how the service delivery system including, but not limited to, the services listed above meet the needs of homeless persons (particularly chronically homeless individuals and families, families with children, veterans and their families, and unaccompanied youth) Local and Statewide service providers provide mainstream services such as healthcare, mental healthcare, substance abuse counseling, food assistance and job training to low-income population and those with special needs. The Delaware Continuum of Care also provides mainstream services for homeless individuals that include rapid rehousing, permanent supportive housing and emergency shelter. Describe the strengths and gaps of the service delivery system for special needs population and persons experiencing homelessness, including, but not limited to, the services listed above Consolidated Plan DOVER 77 OMB Control No: 2506-0117 (exp. 06/30/2018) 83

Item 1. The strength of the service delivery system is the state service and housing providers. The gaps in the delivery system include a lack of federal funding and affordable housing for persons that have low and very low income in addition to the limited number of overnight shelter beds Provide a summary of the strategy for overcoming gaps in the institutional structure and service delivery system for carrying out a strategy to address priority needs The strategy for overcoming gaps in the institutional structure is to continue to provide CDBG funding and support to the existing service and housing providers that service the needs of low income persons and those with special needs. In addition, the City will continue to work collaboratively with non-profits and the State and local housing authorities on initiatives that support affordable housing in the City of Dover. Consolidated Plan DOVER 78 OMB Control No: 2506-0117 (exp. 06/30/2018) 84

Item 1. SP-45 Goals Summary – 91.215(a)(4) Goals Summary Information Sort Goal Name Start End Category Geographic Needs Addressed Funding Goal Outcome Indicator Order Year Year Area 1 HP-1 2025 2029 Homeless Dover City Homelessness CDBG: Homelessness Homeless/Prevention Limits $100,000 Prevention: 500 Persons Assisted 2 HP -2 Homeless 2025 2029 Homeless Dover City Homelessness CDBG: Homelessness Prevention Limits $115,000 Prevention: 7,250 Persons Assisted 3 AH-1 Affordable 2025 2029 Affordable Dover City Homeownership CDBG: Direct Financial Housing Housing Limits Assistance $500,000 Assistance to Homebuyers: 30 Households Assisted 4 AH-2 Affordable 2025 2029 Affordable Dover City Homeowner CDBG: Homeowner Housing Housing Housing Limits Rehabilitation $275,000 Rehabilitated: 15 Household Housing Units 5 AH-3 Affordable 2025 2029 Affordable Dover City Homeowner CDBG: Emergency Home Repairs Housing Housing Limits Rehabilitation $200,000 25 households 6 PF-4 Public Facility 2025 2029 Homeless Dover City Homelessness CDBG: Public Facility or Improvements Limits $200,000 Infrastructure Activities for Low/Moderate Income Housing Benefit: 1000 Persons Assisted Consolidated Plan DOVER 79 OMB Control No: 2506-0117 (exp. 06/30/2018) 85

Item 1. Sort Goal Name Start End Category Geographic Needs Addressed Funding Goal Outcome Indicator Order Year Year Area 7 Fair Housing and 2025 2029 Fair Housing and City-Wide Affordable Housing, $290,000 Other Program Administration Program Homelessness, Fair Administration Housing Table 53 – Goals Summary Goal Descriptions 1 Goal Name HP-1 Homeless/Prevention Goal Meet the needs of men that are homeless by providing shelter and assist in providing permanent supportive housing. Description 2 Goal Name HP -2 Homeless Prevention Goal Meet the needs of women that are homeless by providing shelter and assist in providing permanent supportive housing. Description 3 Goal Name AH-1 Affordable Housing Goal Increase homeownership by providing down payment and closing costs to low-income persons who purchase affordable Description housing in the city. 4 Goal Name AH-2 Affordable Housing Goal Rehab owner occupied housing that is in violation of the City’s Housing Code and complete emergency home repairs that Description will eliminate health and safety hazards in order to preserve the existing housing stock in the city. 5 Goal Name AH-3 Affordable Housing Goal Construction of affordable housing in revitalization areas. Description Consolidated Plan DOVER 80 OMB Control No: 2506-0117 (exp. 06/30/2018) 86

Item 1. 6 Goal Name PF-4 Public Facility Improvements Goal Renovations will be completed to public facilities that service low-income persons. Description 7 Goal Name Program Administration Goal Management and coordination of the CDBG Program including fair housing activities and affirmatively furthering fair Description housing Estimate the number of extremely low-income, low-income, and moderate-income families to whom the jurisdiction will provide affordable housing as defined by HOME 91.315(b)(2) The City of Dover is not a recipient of HOME funds; however, the City estimates that it will complete 15 homeowner rehabs within the City of Dover and provide homeownership assistance to 30 first-time homebuyers who purchase affordable housing in the City over the next 5 years. Consolidated Plan DOVER 81 OMB Control No: 2506-0117 (exp. 06/30/2018) 87

Item 1. SP-50 Public Housing Accessibility and Involvement – 91.215(c) Need to Increase the Number of Accessible Units (if Required by a Section 504 Voluntary Compliance Agreement) The Dover Housing Authority (DHA) waiting list for public housing indicates there are 21 accessible housing units in need. As part of their goals to complete for the Analysis of Impediments, DHA has indicated they will apply the minimum set-aside for accessible units and require assessable units in all housing projects. Activities to Increase Resident Involvements DHA provides their residents with support and assistance in job training, parenting, counseling, financial management, and other skills. These programs are integrated in the housing programs through the Family Self-Sufficiency Program and/or other resident initiatives. It is the position of the City of Dover that these programs provide excellent opportunities for those in public housing to become economically and socially self-sufficient. The following are additional programs that involve resident involvement: • GED/ABE Literacy Classes • Employment Training for Adults and Youth • After School and Summer Programs for Youth Is the public housing agency designated as troubled under 24 CFR part 902? No Plan to remove the ‘troubled’ designation N//A Consolidated Plan DOVER 82 OMB Control No: 2506-0117 (exp. 06/30/2018) 88

Item 1. SP-55 Barriers to affordable housing – 91.215(h) Barriers to Affordable Housing At this time, it is the City of Dover’s contention that there are no significant barriers to affordable housing which describes dwelling units whose total cost is redeemed affordable to those who have a median income. However, there are few constraints that may be an obstacle in constructing affordable housing such as development impact fees which increase the cost to develop new housing, land use policies outlined in the City’s Comprehensive Plan, and building and zoning codes. Unlike many communities, Dover has not practiced “exclusionary zoning” where most of the undeveloped land is designated for large lot single family detached homes. To the contrary, The Dover Plan (Dover’s Comprehensive Plan) designates a large portion of undeveloped lands for medium density housing, and a smaller but significant portion for high density housing. The land is subsequently zoned accordingly, permitting a range of residential densities and housing types. The most recent 2019 Comprehensive Plan Update was adopted in January 2020. The Land Development Plan specifically identifies a range of residential land uses from low density to high density throughout the city. The plan continues to recommend a range of residential densities and focuses specifically on housing in one chapter. Strategy to Remove or Ameliorate the Barriers to Affordable Housing The City of Dover is currently working on several revitalization and housing initiatives in collaboration with other local housing providers that will assist in reducing the barriers to affordable housing. The following is an outline of incentives and goals to promote affordable housing in the City of Dove within the designated target areas: Incentives • Provide up to 20% cash rebate for qualifying construction projects (capped at $1 million/property) • A transfer tax rebate of the buyer’s portion of the real estate tax upon issuance of a Certificate of Occupancy • Waiver of building, plumbing, mechanical and fire protection permit fees • Waiver of City sewer and water impact fees • 10-year abatement of property tax on the value of improvements • Up to $20,000 in down payment cost to purchase affordable housing • Property tax abatement for first-time homebuyers who purchase property in the Redevelopment Target Area that occupy the home as their principal residence for four years Consolidated Plan DOVER 83 OMB Control No: 2506-0117 (exp. 06/30/2018) 89

Item 1. Goals • Encourage greater zoning flexibility to enable infill housing development in the Downtown Redevelopment District by relaxing setback and block standard requirements to allow condominiums and townhouse styles of housing. • Explore land banking and land trust options for assembling parcels and redevelopment efforts. • Strengthen existing housing by expanding the Home Repair Programs Consolidated Plan DOVER 84 OMB Control No: 2506-0117 (exp. 06/30/2018) 90

Item 1. SP-60 Homelessness Strategy – 91.215(d) Reaching out to homeless persons (especially unsheltered persons) and assessing their individual needs The City of Dover will continue to support programs that service the homeless by providing CDBG funding to agencies whose mission is to assist those that are homeless and unsheltered by providing operating costs and renovations cost for emergency shelters. Addressing the emergency and transitional housing needs of homeless persons There are agencies within the City of Dover that provide both emergency shelter and transitional housing. Code Purple was established in the fall of 2014 that provides shelter for homeless persons in Kent County when the temperature or wind chill drops below 32 degrees. When Code Purple is in effect, the homeless are guided to emergency shelters and participating churches within the City of Dover and throughout Kent County that provide warm beds and hot meals. Helping homeless persons (especially chronically homeless individuals and families, families with children, veterans and their families, and unaccompanied youth) make the transition to permanent housing and independent living, including shortening the period of time that individuals and families experience homelessness, facilitating access for homeless individuals and families to affordable housing units, and preventing individuals and families who were recently homeless from becoming homeless again. The Delaware Continuum of Care (CoC) provides supportive services as well as the State Division of Health and Social Services for homeless persons. Help low-income individuals and families avoid becoming homeless, especially extremely low-income individuals and families who are likely to become homeless after being discharged from a publicly funded institution or system of care, or who are receiving assistance from public and private agencies that address housing, health, social services, employment, education or youth needs The local and State housing providers will continue to provide support to the population identified. In addition, the Individualized Assessment, Discharge, and Planning Team (IADAPT) was established in 2010 to provide inmates with advocates that will assist them with mainstream resources once they are discharged and reduce recidivism. Consolidated Plan DOVER 85 OMB Control No: 2506-0117 (exp. 06/30/2018) 91

Item 1. SP-65 Lead based paint Hazards – 91.215(i) Actions to address LBP hazards and increase access to housing without LBP hazards Currently, the State of Delaware Department of Public Health enforces lead based paint abatement within the City of Dover. Under the State's program, families with children who have been diagnosed by the Public Health centers with lead poisoning are referred to a State Lead Based Paint Inspector. The inspector then performs the relevant technical analysis of the family’s residence. If lead based paint is discovered, abatement is required. The City of Dover Department of Planning and Inspections acts in partnership with the State in assuring that lead paint hazards are reduced or eliminated, and that affected housing units are brought up to code. The city currently requires lead-based paint testing and interim controls in conjunction with its CDBG rehabilitation program. The City of Dover Department of Planning and Inspections does not have the equipment necessary to accurately identify lead-based paint during housing inspections. In addition to the activities of the City of Dover and the State of Delaware Department of Public Health, the Dover Housing Authority has been active in lead-based paint abatement in the City. The Dover Housing Authority has tested and abated lead-based paint in all its public housing units. The Dover Housing Authority also deals with the lead paint hazards in private rental units through the enforcement of the Housing Quality Standards in conjunction with its Section 8 Rental Certificate/ Rental Voucher Program How are the actions listed above related to the extent of lead poisoning and hazards? The City of Dover provides information and training to staff who administer the Homeowner Rehabilitation Program to ensure the proper procedures are administered and that residents are properly educated about the dangers of lead-based paint hazards. How are the actions listed above integrated into housing policies and procedures? For all rehabilitation projects that qualify for lead base paint testing and hazards, the City will take the necessary actions to reduce lead base paint hazards in accordance with HUD regulations and monitor the programs for compliance that carry out rehabilitation projects Consolidated Plan DOVER 86 OMB Control No: 2506-0117 (exp. 06/30/2018) 92

Item 1. SP-70 Anti-Poverty Strategy – 91.215(j) Jurisdiction Goals, Programs and Policies for reducing the number of Poverty-Level Families To address poverty within the City of Dover, a multi-faceted Anti-Poverty Strategy will be described below. This strategy stresses partnership with and the support of other agencies and organizations. Within the City of Dover there are two full-service housing authorities, and various social service agencies which need and deserve the City's support. In addition to these service providers, the City of Dover will direct revitalization, economic development, and code enforcement efforts at low to moderate income neighborhoods. This will provide quality places for people in these neighborhoods to live and work and provide them with new and better opportunities to earn a living. The following are the four main elements of the City of Dover's Anti-Poverty Strategy: • Highest Priority Given to Funding Proposals which Address or Fight Poverty: The City of Dover’s PR&CE Committee will give the highest priority in the Five-Year Plan to proposals which are targeted towards those living in poverty. These proposals must be consistent with one or more of the following Priorities identified in this plan: • Encourage Affordable Owner-Occupied Housing in Low to Moderate Income Areas • Improve the Quality of Housing Stock • Aid in Economic Opportunities in Low to Moderate Income Areas How are the Jurisdiction poverty reducing goals, programs, and policies coordinated with this affordable housing plan The City will continue to provide CDBG funds to address the needs of the low and moderate income persons by focusing on homeownership assistance, homeowner rehabilitation, public service needs and public facility improvements. Consolidated Plan DOVER 87 OMB Control No: 2506-0117 (exp. 06/30/2018) 93

Item 1. SP-80 Monitoring – 91.230 Describe the standards and procedures that the jurisdiction will use to monitor activities carried out in furtherance of the plan and will use to ensure long-term compliance with requirements of the programs involved, including minority business outreach and the comprehensive planning requirements The City monitors CDBG activities on a consistent basis through client data, expense reports and subrecipient activities, and annually through Monitoring Site Visits to determine if the subrecipient is in compliance with HUD regulations and program agreements. The monitoring process includes identifying any areas of non-compliance in carrying out program activities and provides corrective actions to the sub-recipient to become compliant with the program guidelines. CDBG administrative staff will continue to provide technical assistance to subrecipients and monitor financial compliance to ensure program funds are expended in a timely manner. Consolidated Plan DOVER 88 OMB Control No: 2506-0117 (exp. 06/30/2018) 94

Item 1. Expected Resources AP-15 Expected Resources – 91.220(c)(1,2) Introduction The City of Dover only receives the Community Development Block Grant. Anticipated Resources Program Source of Uses of Funds Expected Amount Available Year 1 Expected Narrative Description Funds Annual Program Prior Year Total: Amount Allocation: Income: $ Resources: $ Available $ $ Remainder of ConPlan $ CDBG public - Acquisition Expected amount includes a federal Admin and reduction in grant funding over a Planning four year period. Economic Development Housing Public Improvements Public Services $300,000 $18,000 0 $318,000 1,200,000 Table 54 - Expected Resources – Priority Table Explain how federal funds will leverage those additional resources (private, state and local funds), including a description of how matching requirements will be satisfied There is not a match requirement for CDBG funds; however, sub-recipient agencies that were funded have additional resources to supplement their projects. In addition, there are several initiatives and investment projects in the City where CDBG funds will be used as an additional resource to supplement funding these projects. Consolidated Plan DOVER 89 OMB Control No: 2506-0117 (exp. 06/30/2018) 95

Item 1. If appropriate, describe publically owned land or property located within the jurisdiction that may be used to address the needs identified in the plan NeighborGood Partners and Habitat for Humanity have purchased several lots in the Restoring Central Downtown area that will be used to construct affordable housing. Milford Housing Development Corporation will utilize CDBG funds to complete Emergency Home Repairs and major home renovations throughout the city for households that are low to moderate income. Discussion This section has been left blank intentionally. Consolidated Plan DOVER 90 OMB Control No: 2506-0117 (exp. 06/30/2018) 96

Item 1. Annual Goals and Objectives AP-20 Annual Goals and Objectives Goals Summary Information Sort Goal Name Start End Category Geographic Needs Addressed Funding Goal Outcome Indicator Order Year Year Area 1 HP-1 2025 2029 Homeless Dover City Homelessness CDBG: Homelessness Prevention: 1,450 Homeless/Prevention Limits $22,700 Persons Assisted 2 HP -2 Homeless 2025 2029 Homeless Dover City Homelessness CDBG: Homelessness Prevention: 96 Prevention Limits $25,000 Persons Assisted 3 AH-1 Affordable 2025 2029 Affordable Dover City Affordable Housing CDBG: Direct Financial Assistance to Housing Housing Limits $80,000 Homebuyers: 4 Households Assisted 4 AH-2 Affordable 2025 2029 Affordable Dover City Emnergency Home CDBG: Homeowner Housing Housing Housing Limits Repairs $25,000 Rehabilitated: 5 Household Housing Units 5 AH-3 Affordable 2025 2029 Affordable Dover City Homeowner CDBG: Homeowner Housing Housing Housing Limits Rehabilitation $35,000 Rehabilitated: 2 Household Housing Units 6 AH-4 Affordable 2025 2029 Affordable Dover City Affordable Housing CDBG Construction of affordable Housing Housing Limits $25,000 housing in revitalization area 7 PF-4 Public Facility 2025 2029 Homeless Dover City Homelessness CDBG: Public Facility or Infrastructure Improvements Limits $55,000 Activities for Low/Moderate Income Housing Benefit: 5000 persons Assisted Consolidated Plan DOVER 91 OMB Control No: 2506-0117 (exp. 06/30/2018) 97

Item 1. Sort Goal Name Start End Category Geographic Needs Addressed Funding Goal Outcome Indicator Order Year Year Area 8 Program Administration 2025 2029 City-wide Affordable Housing, CDBG Other Homelessness, Fair $50,300 Housing Table 55 – Goals Summary Goal Descriptions 1 Goal Name HP-1 Homeless/Prevention Goal Meet the needs of the homeless by providing public services for shelter operations. Description 2 Goal Name HP -2 Homeless Prevention Goal Meet the needs of women experiencing homelessness. Description 3 Goal Name AH-1 Affordable Housing Increase homeownership by providing down payment and closing costs to low income persons who purchase affordable housing. Goal Description 4 Goal Name AH-2 Affordable Housing Rehab owner occupied housing that is in violation of the City’s Housing Code and complete emergency home repairs that will eliminate Goal d safety hazards to preserve the existing housing stock in the city Description Consolidated Plan DOVER 92 OMB Control No: 2506-0117 (exp. 06/30/2018) 98

Item 1. AH-3 Affordable Housing_________________________________________________________________________________________ Goal Name Construction of affordable housing in revitalization areas. 5 Goal Description 6 Goal Name PF-3 Public Facility Improvements Goal Renovations will be completed to public facilities that service low-income persons Description 7 Goal Name Program Administration Goal . Coordination and management of the CDBG program and fair housing activities Description Consolidated Plan DOVER 93 OMB Control No: 2506-0117 (exp. 06/30/2018) 99

Item 1. Projects AP-35 Projects – 91.220(d) Introduction The 2025 Action Plan is a supplementary document to the Five-Year Consolidated Plan (2025-2029). The goals and objectives focus on developing and sustaining viable communities and improving low and moderate income persons are addressed in the Consolidated Plan as part of the strategy for addressing the needs of low and moderate income people. Projects # Project Name 1 People’s Community Center Operations Costs 2 People’s Community Center Shelter Renovation Costs 3 Homeownership Assistance Program 4 Milford Housing Homeowner Rehabilitation Program 5 Milford Housing Homeowner Emergency Home Repair Program 6 Central Delaware Housing Collaborative Renovations Costs 7 Central Delaware Housing Collaborative Operations Costs 8 Habitat for Humanity construction cost in Redevelopment Area 9 Program Administration Table 56 – Project Information Describe the reasons for allocation priorities and any obstacles to addressing underserved needs The projects that were selected were based on the highest-ranking priorities that were determined from public hearings and stakeholders identified by residents, local government officials and housing providers. The obstacle in addressing the underserved need is the lack of adequate funding to continue to address these needs. Consolidated Plan DOVER 94 OMB Control No: 2506-0117 (exp. 06/30/2018) 100

Item 1. AP-38 Project Summary Project Summary Information 1 Project Name People’s Community Center Target Area City-Wide Goals Supported Public Services Needs Addressed Homelessness Operating Cost Funding $22,700 CDBG funds will be utilized for operating cost for the shelter that Description will include meals and groceries Target Date 6/30/2026 Estimate the number and type of families that will benefit from the proposed activities 1,450 persons annually 2 Name Project People’s Community Center Target Area City-Wide Goals Supported Public Facilities Improvements Needs Addressed Homeless Prevention Affordable Housing Funding $40,000 Description CDBG funds will be used for the renovation of a homeless shelter Target Date 6/30/2026 Estimate the number and type of families that will benefit from the proposed activities 1,450 persons annually Consolidated Plan DOVER 95 OMB Control No: 2506-0117 (exp. 06/30/2018) 101

Item 1. 3 Project Name Homeownership Assistance Program Target Area City-Wide Affordable Housing/ Encourage Owner- Goals Supported Occupied Housing Needs Addressed Housing and Community Development Funding $80,000 CDBG funds will be used to provide homeownership assistance to first-time homebuyers who purchase affordable Description housing in the City of Dover Target Date 6/30/2026 Estimate the number and type of families that will benefit from the proposed activities 4 families 4 Name Project Milford Housing Homeowner Rehabilitation Program Target Area City-Wide Affordable Housing/ Preserving the Existing Goals Supported Housing Stock Needs Addressed Housing and Community Development Funding $35,000 CDBG funds will be used to rehabilitate existing owner occupied housing in the City Description that is in violation of the City’s Housing Code. Target Date 6/30/202 Estimate the number and type of families that will benefit from the proposed activities 2 families 5 Project Name Milford Housing Emergency Repair Project Target Area City-Wide Affordable Housing / Preserving Existing Goals Supported Housing Stock Needs Addressed Housing and Community Development Funding $25,000 CDBG funds will be used to provide emergency home repairs to owner occupied homes to eliminate housing conditions that threaten the health and safety of low-income Description homeowners. Consolidated Plan DOVER 96 OMB Control No: 2506-0117 (exp. 06/30/2018) 102

Item 1. Target Date 6/30/2026 Estimate the number and type of families that will benefit from the proposed activities 5 families 6 Project Name Central Delaware Housing Collaborative Target Area City-Wide Goals Supported Public Facilities Improvements Needs Addressed Housing and Community Development Funding $15,000 CDBG funds will be used for the renovation of Description a women’s shelter Target Date 6/30/2026 Estimate the number and type of families that will benefit from the proposed activities 96 families annually 7 Project Name Central Delaware Housing Collaborative Target Area City- Wide Goals Supported Public Service Needs Addressed Homeless Operations Cost Funding $25,000 CDBG funds will be used for the operations Description and maintenance cost for a women’s shelter Target Date 6/30/2026 Estimate the number and type of families that will benefit from the proposed activity 96 women annually 8 Project Name Central Delaware Habitat for Humanity Target Area Dover City Limits Goals Supported Affordable Housing Needs Addressed Housing and Community Development Funding $25,000 Construction of affordable housing in Description revitalization areas. Target Date 6/30/26 Consolidated Plan DOVER 97 OMB Control No: 2506-0117 (exp. 06/30/2018) 103

Item 1. Estimate the number and type of families that will benefit from the Affordable housing for families that are 60% proposed activity and below the AMI 9 Project Name Program Administration Target Area City-wide Planning and Community Development Goals Supported Affordable housing, homelessness, fair Needs Addressed housing Funding $50,300 Management and coordination of the CDBG Description Program and fair housing activities Target Date 6/30/26 Estimate the number and type of families that will benefit from the proposed activity Consolidated Plan DOVER 98 OMB Control No: 2506-0117 (exp. 06/30/2018) 104

Item 1. AP-50 Geographic Distribution – 91.220(f) Description of the geographic areas of the entitlement (including areas of low-income and minority concentration) where assistance will be directed The purpose of the target block approach is to concentrate resources available to the public, private, and non-profit sectors for housing programs in a specific area (known as the Target Area). The Target Area consists of one of Dover’s oldest working-class neighborhoods located in west central Downtown. This concentrated approach is to ensure the likelihood of an immediate visual impact and long-term stabilizing effect of each area. A map of the Target Area is attached. Geographic Distribution Target Area Percentage of Funds Downtown Target Area 11 Dover City Limits 89 Table 57 - Geographic Distribution Rationale for the priorities for allocating investments geographically The major element of the Target Block Program will be concentrated home-to-home internal inspection to determine deficiencies which need to be corrected. Substandard housing requiring plumbing, electrical update to meet the Dover Building Code, but which is basically sound and suitable for rehabilitation has been targeted. A sufficient number of low and moderate income families must reside in the area. The city will continue to affirmatively further fair housing by maintaining a balance of providing CDBG assistance in impacted and non-impacted areas of the city. Discussion See above. Consolidated Plan DOVER 99 OMB Control No: 2506-0117 (exp. 06/30/2018) 105

Item 1. Affordable Housing AP-55 Affordable Housing – 91.220(g) Introduction Housing is needed for all income levels but there is a greater need for affordable housing for low and very low income persons in the City of Dover. The City of Dover is collaborating with other local housing providers on several initiatives to provide affordable housing in low to moderate income target areas as well as city-wide by providing homeownership assistance to first time home buyers who purchase properties within the City of Dover and designated target areas, provide real estate tax relief over a 4 year period for persons that purchase properties within the designated target area, receive a transfer tax rebate for properties upon issuance of a Certificate of Occupancy for properties purchased after March 1,2015 within the designated target area, and partnering with non-profits One Year Goals for the Number of Households to be Supported Homeless 1500 Non-Homeless 4 Special-Needs 0 Total 1,504 Table 58 - One Year Goals for Affordable Housing by Support Requirement One Year Goals for the Number of Households Supported Through Rental Assistance 0 The Production of New Units 1 Rehab of Existing Units 15 Acquisition of Existing Units 0 Total 16 Table 59 - One Year Goals for Affordable Housing by Support Type Discussion This page is left blank intentionally Consolidated Plan DOVER 100 OMB Control No: 2506-0117 (exp. 06/30/2018) 106

Item 1. AP-60 Public Housing – 91.220(h) Introduction Dover Housing authority services public housing and Housing Choice Vouchers needs within the City of Dover limits. There are several scattered site locations within the boundaries as well. Actions planned during the next year to address the needs to public housing DHA conducts an annual and a 5-year Physical Needs Assessment of their public housing inventory to determine the public housing needs. Projects are prioritized by the greatest need and completed with funding from their Capital Fund Program and their Operating Subsidy Actions to encourage public housing residents to become more involved in management and participate in homeownership Dover Housing Authority provides their residents with support and assistance in job training, parenting, counseling, financial management and other skills. These programs are integrated in the housing programs through the Family Self-Sufficiency Program and/or other Resident Initiatives. It is the position of the City of Dover that these programs provide excellent opportunities for those in public housing to become economically and socially self-sufficient. DHA also provides homeownership opportunities through their Section 8 program, where the residents apply 30% of their income towards their mortgage for the first fifteen years of owning their home and DHA pays the remaining 70%. After fifteen years, the resident pays 100% of their mortgage. If the PHA is designated as troubled, describe the manner in which financial assistance will be provided or other assistance Not applicable Discussion This page left blank intentionally Consolidated Plan DOVER 101 OMB Control No: 2506-0117 (exp. 06/30/2018) 107

Item 1. AP-65 Homeless and Other Special Needs Activities – 91.220(i) Introduction The City of Dover fully supports the Homeless Planning Council of Delaware challenge to End Chronic Homelessness. The city will continue to provide CDBG funding to agencies Describe the jurisdictions one-year goals and actions for reducing and ending homelessness including Reaching out to homeless persons (especially unsheltered persons) and assessing their individual needs The City uses CDBG funds to support various programs aimed at assisting different segments of the population at risk of homelessness. For FY 2025, the city has allocated a total $102,400 to People’s Community Center and the Central Delaware Housing Collaborative for operations cost and renovations that will house homeless men and women. Addressing the emergency shelter and transitional housing needs of homeless persons Code Purple was established in the fall of 2014 that provides shelter for homeless persons in Kent County when the temperature or wind chill drops below 32 degrees. When Code Purple is in effect, the homeless are guided to emergency shelters and participating churches within the City of Dover and throughout Kent County that provide warm beds. Helping homeless persons (especially chronically homeless individuals and families, families with children, veterans and their families, and unaccompanied youth) make the transition to permanent housing and independent living, including shortening the period of time that individuals and families experience homelessness, facilitating access for homeless individuals and families to affordable housing units, and preventing individuals and families who were recently homeless from becoming homeless again Over the next five years, the city will provide CDBG funding to homeless shelters for men and women for operations costs. These shelters also provide supportive services for housing and employment, and address health and mental health issues. In addition, the Delaware Continuum of Care (CoC) provides supportive services as well as the State Division of Health and Social Services. Helping low-income individuals and families avoid becoming homeless, especially extremely low-income individuals and families and those who are: being discharged from publicly funded institutions and systems of care (such as health care facilities, mental health facilities, foster care and other youth facilities, and corrections programs and institutions); or, receiving assistance from public or private agencies that address housing, health, social services, Consolidated Plan DOVER 102 OMB Control No: 2506-0117 (exp. 06/30/2018) 108

Item 1. employment, education, or youth needs The local and State housing providers will continue to provide support to the population identified. In addition, the Individualized Assessment, Discharge, and Planning Team (IADAPT) was established in 2010 to provide inmates with advocates that will assist them with mainstream resources once they are discharged and reduce recidivism. Discussion This page left blank intentionally Consolidated Plan DOVER 103 OMB Control No: 2506-0117 (exp. 06/30/2018) 109

Item 1. AP-75 Barriers to affordable housing – 91.220(j) Introduction: One of the largest barriers to affordable housing in the city is the lack of affordable housing for rental units for low to moderate income persons. The waiting list for the two housing authorities ranges from 18 months to 5 years for public housing and for Section 8. In addition, developers are not constructing affordable housing. Actions it planned to remove or ameliorate the negative effects of public policies that serve as barriers to affordable housing such as land use controls, tax policies affecting land, zoning ordinances, building codes, fees and charges, growth limitations, and policies affecting the return on residential investment At this time, it is the City of Dover’s contention that there are no significant barriers to affordable housing which describes dwelling units whose total cost is deemed affordable to those who have a median income. However, there are few constraints that may be an obstacle in constructing affordable housing such as development impact fees which increase the cost to develop new housing, land use policies outlined in the City’s Comprehensive Plan, and building and zoning codes. Unlike many communities, Dover has not practiced “exclusionary zoning” where most of the undeveloped land is designated for large lot single family detached homes. To the contrary, The Dover Plan (Dover’s Comprehensive Plan) designates a large portion of undeveloped lands for medium density housing, and a smaller but significant portion for high density housing. The land is subsequently zoned accordingly, permitting a range of residential densities and housing types. The most recent 2019 Comprehensive Plan Update was adopted in January 2020. The Land Development Plan specifically identifies a range of residential land uses from low density to high density throughout the City. The plan continues to recommend a range of residential densities and focuses specifically on housing in one chapter. Discussion: This section left blank intentionally Consolidated Plan DOVER 104 OMB Control No: 2506-0117 (exp. 06/30/2018) 110

Item 1. AP-85 Other Actions – 91.220(k) Introduction: Priority needs established in the 2020-2024 Five Year Consolidated Plan were identified as: Provide Aid to special needs persons Preserve the existing housing stock in the City of Dover Encourage owner occupied housing in low to moderate income areas Actions planned to address obstacles to meeting underserved needs The greatest obstacle in meeting the undeserved needs for the City are lack of federal, state and other sources of funding and the lack of affordable housing. In addition, the City’s Downtown Target Area has the highest concentration of low to moderate income residents with aging homes in need of housing rehabilitation with only a 25% homeownership rate in this area. The following is an outline of incentives to promote affordable housing in the City of Dover within the designated target areas: Incentives • Provide up to 20% cash rebate for qualifying construction projects (capped at $1 million/property) • A transfer tax rebate of the buyer’s portion of the real estate tax upon issuance of a Certificate of Occupancy • Waiver of building, plumbing, mechanical and fire protection permit fees • Waiver of City sewer and water impact fees • 10-year abatement of property tax on the value of improvements • Up to $20,000 in down payment cost to purchase affordable housing Actions planned to foster and maintain affordable housing The following are goals that the city will focus on to foster and maintain affordable housing: • Encourage greater zoning flexibility to enable infill housing development in the Downtown Redevelopment District by relaxing setback and block standard requirements to allow Consolidated Plan DOVER 105 OMB Control No: 2506-0117 (exp. 06/30/2018) 111

Item 1. condominiums and townhouse styles of housing. • Explore land banking and land trust options for assembling parcels and redevelopment efforts. Strengthen existing housing by expanding the Home Repair Programs Actions planned to reduce lead-based paint hazards Currently, the State of Delaware Department of Public Health enforces lead based paint abatement within the City of Dover. Under the State's program, families with children who have been diagnosed by the Public Health centers with lead poisoning are referred to a State Lead Based Paint Inspector. The inspector then performs the relevant technical analysis of the family’s residence. If lead based paint is discovered, abatement is required. The City of Dover Department of Planning and Inspections acts in partnership with the State in assuring that lead paint hazards are reduced or eliminated, and that affected housing units are brought up to code. The city currently requires lead-based paint testing and interim controls in conjunction with its CDBG rehabilitation program. The City of Dover Department of Planning and Inspections does not have the equipment necessary to accurately identify lead-based paint during housing inspections. In addition to the activities of the City of Dover and the State of Delaware Department of Public Health, the Dover Housing Authority has been active in lead-based paint abatement in the City. The Dover Housing Authority has tested and abated lead-based paint in all its public housing units. The Dover Housing Authority also deals with the lead paint hazards in private rental units through the enforcement of the Housing Quality Standards in conjunction with its Section 8 Rental Certificate/ Rental Voucher Program The City of Dover provides information and training to staff who administer the Homeowner Rehabilitation Program to ensure the proper procedures are administered and that residents are properly educated about the dangers of lead-based paint hazards. For all rehabilitation projects that qualify for lead base paint testing and hazards, the City will take the necessary actions in order to reduce lead base paint hazards in accordance with HUD regulations and monitor the programs for compliance that carry out rehabilitation projects. Actions planned to reduce the number of poverty-level families The City of Dover will provide CDBG funding over the next five years to projects that will reduce the number of poverty level families by addressing the most critical needs of families, such as , providing funding and support to emergency shelters, providing homeownership assistance to qualifying families who purchase affordable housing in the City of Dover, and complete homeowner rehabilitation and emergency homes repairs to owner occupied homes of low-income families. Actions planned to develop institutional structure The main gap that exists in the Institutional Delivery System is the lack of affordable rental housing. The public housing waiting list for Dover Housing Authority has 843 applicants and 635 applicants on the Consolidated Plan DOVER 106 OMB Control No: 2506-0117 (exp. 06/30/2018) 112

Item 1. Section 8 waiting list. The average person remains on the waiting list for up to 4 years, which increases the risk of homelessness and suffers from a severe housing cost burden paying over 50% of their income in rent. The strategy for overcoming gaps in the institutional structure is to continue to provide CDBG funding and support to the existing service and housing providers that service the needs of low income persons and those with special needs. In addition, the City will continue to work collaboratively with non-profits and the State and local housing authorities on initiatives that support affordable housing in the City of Dover. Actions planned to enhance coordination between public and private housing and social service agencies The city will continue to collaborate with public and private housing providers and social service agencies to meet the goals and objectives of the Consolidated Plan. The Community Development Administrator is a representative on several boards and commissions throughout the State that service the needs of low to moderate income persons. Discussion: This section left blank intentionally Consolidated Plan DOVER 107 OMB Control No: 2506-0117 (exp. 06/30/2018) 113

Item 1. Program Specific Requirements AP-90 Program Specific Requirements – 91.220(l)(1,2,4) Introduction: The City of Dover does not anticipate any program income for FY20 planning period. The City will not be utilizing any program administration funds for FY20, 100% of program funds will be used on projects. Community Development Block Grant Program (CDBG) Reference 24 CFR 91.220(l)(1) Projects planned with all CDBG funds expected to be available during the year are identified in the Projects Table. The following identifies program income that is available for use that is included in projects to be carried out. 1. The total amount of program income that will have been received before the start of the next program year and that has not yet been reprogrammed 0 2. The amount of proceeds from section 108 loan guarantees that will be used during the year to address the priority needs and specific objectives identified in the grantee's strategic plan. 0 3. The amount of surplus funds from urban renewal settlements 0 4. The amount of any grant funds returned to the line of credit for which the planned use has not been included in a prior statement or plan 18,000 5. The amount of income from float-funded activities 0 Total Program Income: 18,000 Other CDBG Requirements 1. The amount of urgent need activities 0 2. The estimated percentage of CDBG funds that will be used for activities that benefit persons of low and moderate income. Overall Benefit - A consecutive period of one, two or three years may be used to determine that a minimum overall benefit of 70% of CDBG funds is used to benefit persons of low and moderate income. Specify the years covered that include this Annual Action Plan. 100.00% Consolidated Plan DOVER 108 OMB Control No: 2506-0117 (exp. 06/30/2018) 114

Item 1. CITY OF DOVER, DELAWARE ACTION FORM PROCEEDING: Council Committee of the Whole (Legislative, Finance and Administration Committee) DEPARTMENT OF ORIGIN: Planning & Inspections SUBMITTED ON: April 8, 2025 PREPARED BY: Sharon J. Duca, P.E., ICMA-CM, Assistant City Manager and Eddie Kopp, Chief Code Enforcement Officer REVIEWED BY: David S. Hugg, III, City Manager SUBJECT: Proposed Snow Removal Ordinance and Proposed Appeals Process TIMETABLE: Recommendation from Council Committee of the Whole April 08, 2025 First Reading of Recommended Ordinances April 28, 2025 Final Reading of Recommended Ordinances May 12, 2025 RELATED PROJECT: n/a EXHIBITS: Ordinance #2025-05 REFERENCE: n/a EXPENDITURE REQUIRED: $0 AMOUNT BUDGETED: $0 FUNDING SOURCE (Dept./Page in CIP & Budget): n/a STAFF RECOMMENDATION: That the committee approve Proposed Ordinance #2025-05 with either Option A or Option B identified and forward it to council for approval. BACKGROUND AND ANALYSIS: On January 28, 2025, City staff presented snow removal-related ordinances to the Safety Advisory and Transportation Committee of the Council Committee of the Whole (CCW), based on citizen concerns received following the winter storm of January 6, 2025. The information below is to summarize the proposed ordinances provided regarding snow removal and the appeals process. • Ordinance #2025-05 – This draft ordinance would create a separate section (Section 98-12) within the Code to address snow and ice removal from sidewalks in the public right-of-way. In general, it would grant an owner or occupant 24 hours after it ceased snowing to clear the sidewalks within the public right-of-way. In addition, a warning would be issued first, prior to the issuance of a citation, allowing 24 hours for the owner or occupant to clear the sidewalks. This draft ordinance 115 also includes the establishment of penalties in Appendix F. No penalty would be imposed with

Item 1. the issuance of a warning. On February 11, 2025, City staff presented to the Safety Advisory and Transportation Committee of the Council Committee of the Whole (CCW) snow removal-related ordinances based upon citizen concerns received following the winter storm of January 6, 2025. The ordinance was amended by staff based on feedback from the committee. The ordinance is being presented with two options, option A and option B. The committee would need to decide which option should move forward. Based upon the above, the staff recommends that the committee approve Proposed Ordinance #2025-05 with either Option A or Option B identified and forward it to council for approval. 116

Item 1. City of Dover PROPOSED ORDINANCE #2025-05 OPTION A (Warning) WITH STAFF AMENDMENT #1 1 BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE CITY OF DOVER, IN 2 COUNCIL MET: 3 4 That Chapter 98 – Streets, sidewalks, storm sewers, and other public places be amended by 5 inserting the text indicated in bold, blue, and deleting the text indicated in red strikeout as follows: 6 7 Sec. 98-5. Duty of tenants or owners to maintain sidewalks and landscaped areas within the 8 street right-of-way. 9 10 (a) It shall be unlawful for the owner or, occupant or person having control of any 11 premises property abutting upon a sidewalk to permit or allow snow or ice to remain 12 thereon for longer than 12 hours of daylight after it has ceased snowing, or to permit 13 debris or other materials to accumulate at any time so that pedestrians may conveniently 14 and safely pass. 15 (b) It is the responsibility of the owner or, occupant or person having control of any 16 premises property abutting upon a sidewalk to keep the landscaped area between the 17 sidewalk and the curbline, or where no sidewalk exists between the property line and 18 curbline or paved street, maintained in accordance with the standards set forth in 19 chapter 114, article II, pertaining to weeds. 20 (c) It shall be unlawful to sweep, blow, or otherwise discharge grass clippings into any 21 street, sidewalk, storm drain, or water course more than incidental amounts of grass. 22 (d) Violations; penalties. Any person(s) violating property in violation of any provision 23 of this section shall be fined as provided for in Appendix F—Fees and Fines. 24 25 Sec. 98-12. Snow and ice removal from sidewalks in the public right of way. 26 27 (a) It shall be unlawful for the owner or, occupant or person having control of any 28 premises property to permit or allow sidewalk(s) abutting the property to 29 accumulate snow or ice when 24 hours have passed since the snowfall ends. it has 30 ceased snowing. The sidewalks must remain clear after the initial 24-hour period of 31 the ceasing of snow from the last snowfall ending. 32 33 (b) Warning; posting. Any property found to have snow or ice remaining on sidewalk(s) 34 abutting property after 24 hours have passed since the snowfall ends cease of snow 117

Item 1. Proposed Ordinance #2025-05 – Amending Chapter 98, Sec. 98-5, Sec. 98-12 Page 2 35 will receive an initial notice of violation via posting of notice by the code official. 36 This notice provides an additional 24 hours to remove all snow and ice from the 37 sidewalk. 38 39 40 (c) Violations; penalties. Any property owner who fails to keep the sidewalk(s) free 41 from snow and ice after 24 hours of the posting of the initial notice of violation will 42 be subject the property owner to penalties as provided in Appendix F- Fees and 43 Fines. 44 45 (d) Appeals: Any person aggrieved by a decision of the code official or believes 46 they are subject to an exemption from this section, shall have the right to 47 appeal to the Code Board of Appeals. Such an appeal must be filed in writing 48 and submitted to the City Clerk’s Office within 30 days of the date of written 49 correspondence. 50 51 Secs. 98-12 13—98-40. Reserved. 52 53 BE IT FURTHER ORDAINED: 54 55 That Appendix F -Fees and Fines, be amended by inserting the text indicated in bold, blue font 56 and deleting the text indicated in red strikeout as follows: 57 58 Chapter 98. – Streets, Sidewalks, and Other Public Places Chapter 98. Streets, Sidewalks and Other Public Places Fees and Fines Article I. In General Sec. 98-5. Duty of tenants or owners to maintain sidewalks and $100.00 per violation landscaped areas within the street right-of-way Sec. 98-11. Placement of wireless communications facilities within rights-of-way (c) Use of Rights-of-Way Permit (1) Permit Fee $25.00 for ROW Permit (2) Annual Fee for Rights-of-way Use No charge for WCF placement on existing City owned wireless support structure in City ROW $220.00 for Placement of new wireless support structure/pole in City 118

Item 1. Proposed Ordinance #2025-05 – Amending Chapter 98, Sec. 98-5, Sec. 98-12 Page 3 ROW $220.00 for WCF placement on a third party/non-City wireless support structure/pole in City ROW Sec. 98-12. Snow and ice removal from sidewalks in the public right of way. (b) Warning; Posting $0.00 (c) Violations; penalties $100.00 per violation Article VI. Excavations Sec. 98-253. Bond Maximum of $5,000.00 per opening Article VII. Parades Sec. 98-303. Fee at the time of filing the application for a parade $10.00. This fee may permit be waived, in whole or in part, by the chief of police. 59 60 61 62 ADOPTED: * 63 64 65 SYNOPSIS 66 67 The ordinance amends Chapter 98 establishing a stricter timeline for snow and ice removal, 68 requiring sidewalk(s) abutting the properties to be cleared within 24 hours after snowfall ends with 69 a notice of violation issued if sidewalks remain uncleared after this period. Failure to comply after 70 the notice results in penalties. These changes aim to improve pedestrian safety, maintain clean 71 public spaces, and ensure compliance with city maintenance standards. Additionally, the ordinance 72 amends the fees and fines for violations, including a $100 fine for non-compliance with snow and 73 ice removal. 74 75 (SPONSORS: 76 77 78 Action History 79 04/08/2025 – Introduction – Council Committee of the Whole/Legislative, Finance, and Administration 80 Committee with Staff Amendment #1 81 02/25/2025 - Council Committee of the Whole/ Legislative, Finance, and Administration Committee 119

Item 1. City of Dover PROPOSED ORDINANCE #2025-05 OPTION B (No Warning) WITH STAFF AMENDMENT #1 1 BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE CITY OF DOVER, IN 2 COUNCIL MET: 3 4 That Chapter 98 – Streets, sidewalks, storm sewers, and other public places be amended by 5 inserting the text indicated in bold, blue, and deleting the text indicated in red strikeout as follows: 6 7 Sec. 98-5. Duty of tenants or owners to maintain sidewalks and landscaped areas within the 8 street right-of-way. 9 10 (a) It shall be unlawful for the owner or, occupant or person having control of any 11 premises property abutting upon a sidewalk to permit or allow snow or ice to remain 12 thereon for longer than 12 hours of daylight after it has ceased snowing, or to permit 13 debris or other materials to accumulate at any time so that pedestrians may conveniently 14 and safely pass. 15 (b) It is the responsibility of the owner or, occupant or person having control of any 16 premises property abutting upon a sidewalk to keep the landscaped area between the 17 sidewalk and the curbline, or where no sidewalk exists between the property line and 18 curbline or paved street, maintained in accordance with the standards set forth in 19 chapter 114, article II, pertaining to weeds. 20 (c) It shall be unlawful to sweep, blow, or otherwise discharge grass clippings into any 21 street, sidewalk, storm drain, or water course more than incidental amounts of grass. 22 (d) Violations; penalties. Any person(s) violating property in violation of any provision 23 of this section shall be fined as provided for in Appendix F—Fees and Fines. 24 25 Sec. 98-12. Snow and ice removal from sidewalks in the public right of way. 26 27 (a) It shall be unlawful for the owner or, occupant or person having control of any 28 premises property to permit or allow sidewalk(s) abutting the property to 29 accumulate snow or ice when 24 hours have passed since the snowfall ends. it has 30 ceased snowing. The sidewalks must remain clear after the initial 24-hour period of 31 the ceasing of snow from the last snowfall ending. 32 33 (b) Warning; posting. Notice: Any property found to have snow or ice remaining on 34 sidewalk(s) abutting property after 24 hours have passed since the cease of snow 120

Item 1. Proposed Ordinance #2025-05 – Amending Chapter 98, Sec. 98-5, Sec. 98-12 Page 2 35 snowfall ends will receive a notice of violation and a citation in writing by the code 36 official. an initial notice of violation via posting of notice by the code official. This 37 notice provides 24 hours to remove all snow and ice from the sidewalk. 38 39 40 (c) Violations; penalties. Any property who fails to keep the sidewalk(s) free from snow 41 and ice after 24 hours of the posting of the initial notice of violation will be subject 42 the property owner to penalties as provided in Appendix F- Fees and Fines. 43 44 (d) Appeals: Any person aggrieved by a decision of the code official or believes 45 they are subject to an exemption from this section, shall have the right to 46 appeal to the Code Board of Appeals. Such an appeal must be filed in writing 47 and submitted to the City Clerk’s Office within 30 days of the date of written 48 correspondence. 49 Secs. 98-12 13—98-40. Reserved. 50 51 BE IT FURTHER ORDAINED: 52 53 That Appendix F -Fees and Fines, be amended by inserting the text indicated in bold, blue font 54 and deleting the text indicated in red strikeout as follows: 55 56 Chapter 98. – Streets, Sidewalks, and Other Public Places Chapter 98. Streets, Sidewalks and Other Public Places Fees and Fines Article I. In General Sec. 98-5. Duty of tenants or owners to maintain sidewalks and $100.00 per violation landscaped areas within the street right-of-way Sec. 98-11. Placement of wireless communications facilities within rights-of-way (c) Use of Rights-of-Way Permit (1) Permit Fee $25.00 for ROW Permit (2) Annual Fee for Rights-of-way Use No charge for WCF placement on existing City owned wireless support structure in City ROW $220.00 for Placement of new wireless support structure/pole in City ROW 121

Item 1. Proposed Ordinance #2025-05 – Amending Chapter 98, Sec. 98-5, Sec. 98-12 Page 3 $220.00 for WCF placement on a third party/non-City wireless support structure/pole in City ROW Sec. 98-12. Snow and ice removal from sidewalks in the public right of way. (b) Warning; Posting $0.00 (c) Violations; penalities $100.00 per violation Article VI. Excavations Sec. 98-253. Bond Maximum of $5,000.00 per opening Article VII. Parades Sec. 98-303. Fee at the time of filing the application for a parade $10.00. This fee may permit be waived, in whole or in part, by the chief of police. 57 58 59 60 ADOPTED: * 61 62 63 SYNOPSIS 64 65 The ordinance amends Chapter 98 establishing a stricter timeline for snow and ice removal, 66 requiring sidewalk(s) abutting the properties to be cleared within 24 hours after snowfall ends. All 67 violations would receive a citation without a warning. These changes aim to improve pedestrian 68 safety, maintain clean public spaces, and ensure compliance with city maintenance standards. 69 Additionally, the ordinance amends the fees and fines for violations, including a $100 fine for non- 70 compliance with snow and ice removal. 71 72 (SPONSORS: 73 74 75 Action History 76 04/08/2025 – Introduction – Council Committee of the Whole/ Legislative, Finance, and Administration 77 Committee with Staff Amendment #1 78 02/25/2025 - Council Committee of the Whole/ Legislative, Finance, and Administration Committee 122

Item 2. CITY OF DOVER, DELAWARE ACTION FORM PROCEEDING: Council Committee of the Whole (Legislative, Finance and Administration Committee) DEPARTMENT OF ORIGIN: Planning & Inspections SUBMITTED ON: April 8, 2025 PREPARED BY: Sharon J. Duca, P.E., ICMA-CM, Assistant City Manager and Eddie Kopp, Chief Code Enforcement Officer REVIEWED BY: David S. Hugg, III, City Manager SUBJECT: Proposed Snow Removal Ordinance and Proposed Appeals Process TIMETABLE: Recommendation from Council Committee of the Whole April 08, 2025 First Reading of Recommended Ordinances April 28, 2025 Final Reading of Recommended Ordinances May 12, 2025 RELATED PROJECT: n/a EXHIBITS: Ordinance #2025-06 REFERENCE: n/a EXPENDITURE REQUIRED: $0 AMOUNT BUDGETED: $0 FUNDING SOURCE (Dept./Page in CIP & Budget): n/a STAFF RECOMMENDATION: That the committee approve Proposed Ordinance #2025-06 and forward it to council for approval BACKGROUND AND ANALYSIS: On January 28, 2025, City staff presented snow removal-related ordinances to the Safety Advisory and Transportation Committee of the Council Committee of the Whole (CCW), based on citizen concerns received following the winter storm of January 6, 2025. The information below is to summarize the proposed ordinances provided regarding snow removal and the appeals process. • Ordinance #2025-06 – This draft ordinance would establish an appeals process for appeals concerning the City of Dover Code of Ordinances, other than chapters of the code that are currently covered by an existing appeals process. There is currently no appeals process within the code for many sections of the code. 123

Item 2. On February 11, 2025, City staff presented to the Safety Advisory and Transportation Committee of the Council Committee of the Whole (CCW) snow removal-related ordinances based upon citizen concerns received following the winter storm of January 6, 2025. This ordinance was amended by staff based on the comments obtained from the committee and the public to ensure all actions from any code official can be appealed. Based upon the above, the staff recommends that the committee approve Proposed Ordinance #2025-06 and forward it to council for approval. 124

Item 2. City of Dover PROPOSED ORDINANCE #2025-06 WITH STAFF AMENDMENT #1 1 BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE CITY OF DOVER, IN 2 COUNCIL MET: 3 4 That Chapter 1 – General Provisions be amended by inserting the text indicated in bold, blue, as 5 follows: 6 7 Sec. 1-18. Code Board of Appeals. 8 9 (a) Established; composition; appointment. There shall be a committee to be referred to as 10 the " Code Board of Appeals," consisting of five members. The council president shall 11 appoint three elected city officials, and the mayor shall appoint two city residents 12 generally selected as a representative of homeowners. Members shall serve one-year 13 terms unless sooner removed. All appointments are subject to confirmation by the city 14 council at its second regular meeting in May. The Code Board of Appeals shall elect 15 one of its members as chairperson. 16 17 (b) Appeals. Whenever any person property owner is aggrieved by a decision of the code 18 official with respect to any provision of the Dover Code of Ordinance, said owner shall 19 have the right of that person to appeal to the Code Board of Appeals. Such an appeal 20 must be filed in writing and submitted to the City Clerk’s Office within 30 days of 21 the date of written correspondence. after the determination by the official code. 22 23 (c) Exempt. The following are exempt from these provisions under this section: 24 25 (1) No notice, order, citation, or summons shall be determined by the Code Board of 26 Appeals pertaining to Chapter 22- Building and Building Regulations. 27 28 (2) No notice, order, citation, or summons shall be determined by the Code Board of 29 Appeals pertaining to Chapter 46- Fire Prevention and Protection. 30 31 (3) No notice, order, citation, or summons shall be determined by the Code Board of 32 Appeals when issued by any law enforcement agency having jurisdiction. 33 34 (d) Notice; hearing. Upon receipt of such an appeal the Code Board of Appeals shall set a 35 time and place in not less than ten, nor more than 30 days, for the purpose of hearing 125

Item 2. Proposed Ordinance #2025-06 – Amending Chapter 1 – General Provisions, Sec. 1-18 Page 2 36 the appeal. Notice of the time and place of the hearing of the appeal shall be given to 37 all parties, at which time they may appear and be heard. The determination by the 38 Code Board of Appeals shall be final in all cases. 39 40 (e) Stay of Enforcement. Appeals of any notice, order, citation, or summons (other than 41 Imminent Danger notices) shall stay the enforcement of the notice, order, citation, or 42 summons until the appeal is resolved by the appeals board. 43 44 45 46 ADOPTED: * 47 48 49 SYNOPSIS 50 This ordinance establishes a Code Board of Appeals. The board will hear appeals from individuals 51 aggrieved by decisions made by the official code, with appeals to be filed within 30 days. Certain 52 provisions, such as those related to building regulations, fire prevention, and law enforcement, are 53 exempt from the board’s jurisdiction. The board will set a hearing date within 10 to 30 days of 54 receiving an appeal, and its decision will be final. 55 56 (SPONSORS: 57 58 59 Action History 60 04/08/2025 – Introduction – Council Committee of the Whole/ Legislative, Finance, and Administration 61 Committee with Staff Amendment #1 62 02/25/2025 - Council Committee of the Whole/ Legislative, Finance, and Administration Committee 126

Item 3. For the year ended June 30, 2023 CITY OF DOVER, DELAWARE 127

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Item 3. For the fiscal year ended June 30, 2023 Prepared by the City of Dover Finance Department 129

Item 3. ACKNOWLEDGEMENTS The City of Dover’s Annual Comprehensive Financial Report was prepared by the Finance Department Lori Peddicord / Patricia Marney Controller / Treasurer - Interim Controller / Treasurer Melanie Patterson Assistant Controller/Treasurer Robin Dickerson Financial Reporting & Accounting Manager Sharon Daniel Accountant I Debbie O’Brien Accountant II Cindy Fletcher / Dionni Person Payroll Specialist Christopher McAleer Accounts Payable Clerk SPECIAL APPRECIATION IS EXTENDED TO ALL PERSONNEL THROUGHOUT THE CITY FOR THEIR CONTINUED SUPPORT OF THE FINANCE DEPARTMENT. 130

2023 Annual Comprehensive Financial Report for the City of Dover, Delaware Item 3. PAGE INTRODUCTORY SECTION ....................................................................................................................................................... 1 Letter of Transmittal .................................................................................................................................... 3 Certificate of Achievement for Excellence in Financial Reporting ............................................................. 10 Mayor and Members of Council ................................................................................................................ 11 List of Elected Officials .............................................................................................................................. 12 List of Appointed Officials ......................................................................................................................... 13 List of Committees, Commissions, and Boards ......................................................................................... 14 Organization Chart .................................................................................................................................... 16 Vision.......................................................................................................................................................... 17 FINANCIAL SECTION ................................................................................................................................................................... 19 PART A - Report of Independent Public Accountants .......................................................................... 21 PART B - Management’s Discussion and Analysis .............................................................................. 27 PART C - Basic Financial Statements .................................................................................................. 45 Government-wide Financial Statements Statement of Net Position ................................................................................................................... 47 Statement of Activities ....................................................................................................................... 48 Fund Financial Statements Governmental Funds Balance Sheet ................................................................................................... 49 Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position ....... 50 Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds ....... 51 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities .......................................................................... 52 Statement of Net Position – Proprietary Funds .................................................................................. 53 Statement of Revenues, Expenses and Changes in Fund Net Position – Proprietary Funds .............. 54 Statement of Cash Flows – Proprietary Funds .................................................................................... 55 Statement of Net Position – Fiduciary Funds ...................................................................................... 57 Statement of Changes in Net Position – Fiduciary Funds ................................................................... 58 131 i

2023 Annual Comprehensive Financial Report for the City of Dover, Delaware Item 3. PAGE FINANCIAL SECTION – CONTINUED Notes to Financial Statements Index - Notes to Financial Statements ................................................................................................ 59 Notes to Financial Statements ............................................................................................................ 61 PART D - Required Supplementary Information ................................................................................125 General Fund – Schedule of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual (Non-GAAP Basis) ................................................................................................................... 127 Police Pension Fund Schedule of Changes in Net Pension Liability, Related Ratios........................................................... 129 Schedule of Employer Contributions................................................................................................. 130 Schedule of Investment Returns ....................................................................................................... 130 General Employee Pension Fund Schedule of Changes in Net Pension Liability, Related Ratios........................................................... 132 Schedule of Employer Contributions................................................................................................. 133 Schedule of Investment Returns ....................................................................................................... 133 Delaware Public Employee Retirement System – County and Municipal Police and Firefighter’s Pension Plan Schedule of the City of Dover’s Proportionate Share of the Net Pension Liability ........................... 135 Schedule of the City of Dover’s Contributions .................................................................................. 135 Other Post-Employment Benefits Trust Fund Schedule of Changes in Net OPEB Liability, Related Ratios............................................................... 136 Schedule of City’s Contributions ....................................................................................................... 137 Schedule of Investment Returns ....................................................................................................... 137 Notes to Required Supplementary Information Governmental Budgets...................................................................................................................... 139 Part E - Supplementary Information ......................................................................................................... 141 General Fund Combining Schedules .................................................................................................. 143 Combining General Fund Balance Sheet ........................................................................................... 144 Combining Schedule of Revenues, Expenditures and Changes in Fund Balances of the General Fund (Non-GAAP Basis) .............................................................................................................................. 145 Governmental Capital Projects Fund – Schedule of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual (Non-GAAP Basis) .............................................................................. 146 132 ii

2023 Annual Comprehensive Financial Report for the City of Dover, Delaware Item 3. PAGE FINANCIAL SECTION – CONTINUED Financial Statements Special Revenue Funds .................................................................................... 147 Special Revenue Funds – Combining Balance Sheet ......................................................................... 149 Special Revenue Funds – Combining Statement of Revenues, Expenditures and Changes in Fund Balances ............................................................................................................................................. 150 Police Federal Grants – Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget (Non-GAAP Basis) and Actual ............................................................................................................ 151 Police State Grants – Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget (Non-GAAP Basis) and Actual ............................................................................................................ 152 Library Grants – Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget (Non- GAAP Basis) and Actual ..................................................................................................................... 153 Municipal Street Aid Fund – Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget (Non-GAAP Basis) and Actual ................................................................................................ 154 Housing Programs – CDBG – Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget (Non-GAAP Basis) and Actual ................................................................................................ 154 ARPA Funding Grant .......................................................................................................................... 155 State of Delaware Department of Transportation Grants – Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget (Non-GAAP Basis) and Actual .................................................... 155 Substance Abuse Prevention Program – Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget (Non-GAAP Basis) and Actual ............................................................................... 156 Electronic Red Light Safety Program – Schedule of Revenues, Expenditures and Changes in Unreserved Fund Balance – Budget (Non-GAAP Basis) and Actual ...................................................................... 156 Lodging Tax Fund – Schedule of Revenues, Expenditures and Changes in Unreserved Fund Balance – Budget (Non-GAAP Basis) and Actual ................................................................................................ 157 Realty Transfer Tax Fund – Schedule of Revenues, Expenditures and Changes in Unreserved Fund Balance – Budget (Non-GAAP Basis) and Actual ............................................................................... 157 Proprietary Fund Types - Enterprise Funds....................................................................................... 158 Electric Revenue Fund – Schedule of Revenues and Expenses – Budget (Non-GAAP Basis) and Actual ........................................................................................................................................................... 160 Electric Improvement & Extension Fund – Schedule of Revenues and Expenses – Budget (Non-GAAP Basis) and Actual ............................................................................................................................... 161 Water Fund Schedule of Revenues and Expenses Budget (Non-GAAP Basis) and Actual ................ 162 Water Improvement & Extension Fund Schedule of Revenues and Expenses Budget (Non-GAAP Basis) and Actual.......................................................................................................................................... 163 133 iii

2023 Annual Comprehensive Financial Report for the City of Dover, Delaware Item 3. PAGE FINANCIAL SECTION – CONTINUED Wastewater Fund Schedule of Revenues and Expenses Budget (Non-GAAP Basis) and Actual ....... 164 Wastewater Improvement & Extension Fund Schedule of Revenues and Expenses Budget (Non-GAAP Basis) and Actual ............................................................................................................................... 165 Proprietary Fund Types - Internal Service Funds ............................................................................. 166 Worker’s Compensation – Schedule of Revenues and Expenses – Budget (Non-GAAP Basis) and Actual ........................................................................................................................................................... 167 Fiduciary Fund Types – Pension and Other Employee Benefit Trusts ........................................... 168 Combining Statement of Net Position – Fiduciary Funds.................................................................. 168 Combining Statement of Changes in Net Position – Fiduciary Funds ............................................... 169 Fiduciary Fund Types – Custodial ...................................................................................................... 170 Combining Statement of Net Position – Custodial Funds ................................................................. 171 Combining Statement of Changes in Net Position – Custodial Funds ............................................... 171 STATISTICAL SECTION ................................................................................................................................................................. 173 Net Position by Component .............................................................................................................. 176 Changes in Net Position..................................................................................................................... 177 Fund Balances of Governmental Funds ............................................................................................. 179 Changes in Fund Balances of Governmental Funds .......................................................................... 180 Governmental Activities Tax Revenues by Source ........................................................................... 182 Assessed and Estimated Actual Value of Taxable Property ............................................................. 183 Property Tax Rates – All Direct and Overlapping Governments with the Capital School District ..... 184 Principal Tax Payers ........................................................................................................................... 185 Property Tax Levies and Collections .................................................................................................. 186 Ratios of Outstanding Debt by Type.................................................................................................. 187 Ratio of Net General Obligation Bonded Debt to Assessed Value and Net Bonded Debt Per Capita ........................................................................................................................................................... 188 Ratio of Annual Debt Service Expenditures for General Bonded Debt to Total General Expenditures ........................................................................................................................................................... 189 134 iv

2023 Annual Comprehensive Financial Report for the City of Dover, Delaware Item 3. PAGE STATISTICAL SECTION – CONTINUED Computation of Direct and Overlapping Debt with the Capital School District ................................ 190 Computation of Legal Debt Margin ................................................................................................... 191 Revenue Bond Coverage – Electric Revenue Bonds .......................................................................... 192 Revenue Bond Coverage – Water Bonds........................................................................................... 193 Revenue Bond Coverage – Wastewater Bonds ................................................................................. 194 Top Ten Water and Wastewater Utility Customers .......................................................................... 195 Top Ten Electric Utility Customers .................................................................................................... 196 Demographic and Economic Statistics .............................................................................................. 197 Major Employers by Industry – Current Year and Nine Years Ago.................................................... 198 Full-time Equivalent City Government Employees by Function – Budgeted ................................... 199 Operating Indicators and Capital Assets Used in Operations ........................................................... 200 Summary of Insurance....................................................................................................................... 202 135 v

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2023 Annual Comprehensive Financial Report for the City of Dover, Delaware Item 3. INTRODUCTORY SECTION LETTER OF TRANSMITTAL MAYOR AND MEMBERS OF COUNCIL LIST OF ELECTED OFFICIALS LIST OF APPOINTED OFFICIALS LIST OF COMMITTEES, COMMISSIONS AND BOARDS ORGANIZATION CHART VISION 137 1

2023 Annual Comprehensive Financial Report for the City of Dover, Delaware Introductory Section Item 3. Constitution Park 301 South State Street 138 2

2023 Annual Comprehensive Financial Report for the City of Dover, Delaware Introductory Section Item 3. January 30. 2025 The Honorable Mayor, Honorable Council President, Members of the City Council and Citizens of the City of Dover Dover, Delaware 19901 Ladies and Gentlemen: I am pleased to submit the Annual Comprehensive Financial Report of the City of Dover for the fiscal year ended June 30, 2023. This report is published to comply with the provisions of Article IV, Section 46 of the City Charter. It is also intended to provide financial data to the tax and ratepayers, bondholders, trustees, banks, federal and state agencies, and the financial community at large. Management assumes full responsibility for the completeness and reliability of the information contained in this report, based upon a comprehensive framework of internal control that it has established for this purpose. Because the cost of internal control should not exceed anticipated benefits, the objective is to provide reasonable, rather than absolute, assurance that the financial statements are free of any material misstatements. The financial statements in this report have been audited by SB & Company, LLC, an independent firm of certified public accountants as required by Section 46 of the City Charter. SB & Company, LLC has provided an unmodified opinion on the City of Dover financial statements for the year ended June 30, 2023. The report of independent public accountants is located at the front of the financial section of this report. Management’s Discussion and Analysis (MD&A) provides a narrative introduction, overview, and analysis of the basic financial statements. The MD&A complements this letter of transmittal and should be read in conjunction with it. Our MD&A can be found immediately following the report of our independent auditors. THE REPORTING ENTITY AND ITS SERVICES The City of Dover was incorporated in 1829 under a Charter granted by the General Assembly. Dover is the Capital of the State of Delaware and is in the central part of the State. It is home to the State Governor’s office, legislative offices, and is the County seat for Kent County. The City currently occupies a land area of 23.98 square miles and serves a population of approximately 39,554. Dover’s governing body is composed of a Mayor and nine Council Members, with one Council Member elected by Council to serve as Council President. Two members of City Council are elected from each of the four 139 3

2023 Annual Comprehensive Financial Report for the City of Dover, Delaware Introductory Section Item 3. districts; the ninth Council member of Council and the Mayor are elected at-large. The Council is responsible for all matters of policy and is the authority for levying taxes, securing revenues, authorizing expenditures of City funds and incurring City debts. The City of Dover operates under a Council – Manager form of government. The City provides a full range of services as mandated by the Charter or adopted by the City Council. They include police protection, street, sanitation and stormwater maintenance, recreation, library, community development, economic development, public improvements, planning and zoning, safety inspections, electric power generation and distribution, water and wastewater services, legislative services, and general administration. Within the City is a volunteer fire company that is autonomous. Under established criteria, the operations of the Robbins Hose Fire Company are not a part of this report. However, the City provides financing for dispatching, personnel costs, most of the building and equipment maintenance, supplies, and contractual services. The City also provides funding to Robbins Hose for payments on fire engine no. 5, fire engine Squad no. 1 and engine 1 (received in January, 2023). These payments are grouped under the Fire Department and are included in the General Fund. The Fire Chief is elected by the volunteer members of the Fire Company. The City Council traditionally adopts the election and officially appoints the Fire Chief for a one-year term. Therefore, the Fire Department is included in the City organization chart. The Capital School District does not meet the established criteria for inclusion in the reporting entity and, accordingly, is excluded from this report. The City Council shall, on or before the second Monday of June in each year, adopt a budget for the succeeding fiscal year. This annual budget serves as the foundation for the City of Dover’s financial planning and control. The budget is prepared by fund and department. With approval of the City Manager and Controller/Treasurer, Department Heads may transfer resources within or between departments, except for salaries/fringe benefits and capital project budgets. Transfers between funds and transfers of capital project budgets, however, need special approval from the City Council. ECONOMIC CONDITION AND FUTURE GROWTH Dover continues to be the dominant center of population, employment, commerce, education, and culture in Central Delaware. Economic growth continues in all sectors with construction and permit activity occurring during the year. Population and employment growth remain steady, but consumer spending has been reduced and some retail market softness could continue to impact utility and other revenues. Growth in the health care and commercial/retail sectors is especially strong, with significant new projects occurring throughout the City. Revitalization of the historic Downtown commercial core continues somewhat slowly, but increasingly successful projects to include the older nearby residential neighborhoods is ongoing. There were 2,292 building permits of all types issued in FY23, up 11.9% from the prior year. The City issued 3,529 business licenses, down 5.3% from the prior year, reflecting a post-pandemic economy and inflationary conditions. A year-to-year comparison is not necessarily indicative of the health of Dover’s economy due to the timing of activity and the variability of general economic factors. 140 4

2023 Annual Comprehensive Financial Report for the City of Dover, Delaware Introductory Section Item 3. Growth and development trends during FY23 are discussed below. Population Growth The decennial census was conducted in 2020 and set Dover’s April 1, 2020 population at 39,403 (an increase of about 9.3% since 2010). Dover’s population is projected to grow to 41,207 by 2030, with a sustained growth rate of about 2.5% during each of the next ten-year periods. Statistically, Dover’s population is younger than that of the County or the State, with a lower proportion of population of senior citizens as well. Working-age adults (25-64) are projected to remain stable as a percentage of the City’s population, making up slightly less than half of the City’s population through 2030. Residential Development Continued interest in the build-out of residential subdivisions occurred in FY23 for the City, with over one hundred three (103) permits issued for a mix of one-family detached dwellings, duplexes, and townhomes. There was residential construction activity in Eden Hill Farm TND, Patriot Village, Oak Shadows, and Lexington Glen. A series of permits for one-family dwelling infill projects were also issued throughout the year including within the area of the Downtown Development District and other scattered lots citywide. A number of manufactured home placements also occurred on existing lots in Dover East Estates. FY23 also saw continued activity with Fence, Shed, and Deck Permits as people made improvements at their residences. Site plan review for multi-family units including locations on McKee Road, Leipsic Road and Bay Road. Downtown Dover Redevelopment Revitalization of the historic Downtown core is continuing in both commercial and residential sectors, with potential new businesses locating in existing spaces, primarily along Loockerman Street. Through the efforts of groups like NeighborGood Partners and Habitat for Humanity, numerous deteriorated and blighted residential properties have been demolished and are being replaced by new owner-occupied dwellings, transforming entire block-fronts adjacent to the commercial core. Over the course of FY23, the City authorized $26,952 in Permit Fee, Business License and Impact Fee Waivers for 12 properties for the purpose of new housing or business within the Downtown Development District. Addresses include: 23, 25, and 29 South Governors Avenue; 25, 28, 136, 215, 225A, and 225B, West Loockerman Street; 92 and 101 North West Street; and 53 South New Street. Retail/Commercial Development This sector continues to show significant growth with new and expanded locations along the major highway corridors and throughout the City. Renovations / tenet fit-outs were completed for numerous commercial projects including Veronica’s Pizzeria in Capital Station, Sally Beauty in North Dover Shopping Center, Boot Barn in Dover Commons, Nutrition Shake Bar in Greentree Shopping Center, Brandywine Counseling & Community Services, and McDonald’s on Forrest Avenue. A building permit was issued for the Rail Haus at 92 N West Street. In addition, a certificate of occupancy was issued for the Delaware Solid Waste Authority’s new facility. 141 5

2023 Annual Comprehensive Financial Report for the City of Dover, Delaware Introductory Section Item 3. Health Care, Institutional and Other Sectors Development Dover’s economy continues to be well balanced across a range of sectors including education, government and health care. In education, the Delaware State University continued to perform renovations on several buildings across their campus. Construction also continued on the two middle schools for the Capital School District. For government, a building permit was issued to the City of Dover for the new Dover Park Community Center and Spray Pad. In addition, site plan finalization for the new Family Court facility occurred. In health care, Bayhealth completed interior renovations at their Blue Hen Corporate Center location and performed additional renovations at several locations across their campus. Renovations were also performed at the Eden Hill Medical Center. Summary FY23 saw a continuation of strong growth in the state capital. Dover remains the geographic and economic center of the County, and is well posed for future growth, development, and reinvestment. LONG-TERM FINANCIAL PLANNING AND MAJOR INITIATIVES The City Council continues its focus and commitment to improving the quality and reliability of our City assets and infrastructure to continue to provide safe and reliable municipal services to the citizens of Dover. The facilities department invested $0.9 million with HVAC improvements at City Hall, asbestos abatement of the old post office, along with various improvements at the warehouse. Total vehicle and equipment purchases for the General fund totaled approximately $2.6 million. Stormwater replaced pipe in Williams Park totaling $0.1 million. These and some other smaller parks and recreation, library, and IT projects totaling approximately $0.1 million. The electric utility fund had fixed asset additions totaling $4.4 million in fiscal year 2023. The installation of transformer, and conductor projects in various locations around the City resulted in approximately $0.5 million including the new Dover Middle School and Phase 2 of Eden Hill conductors, along with several additional smaller projects attributing to another $0.2 million. Another phase of the LED Lighting conversion project was placed into service totaling $0.2 million. Additionally, the City also had a generator and security installation completed at Weyandt Hall on Reed Street and a new access gate at the administration building totaling $0.1 million. Total vehicle and other equipment purchases for the Electric fund totaled approximately $0.5 million. The water utility had $3.3 million invested in capital improvement projects that are still in progress. Of that total, $1.9 million was spent out of ARPA funds. The projects included were $1.9 million in water quality improvement projects in the area of North State Street, $0.5 million for the Aero Park water tower, and $0.2 million for wellhead redevelopment improvements in an effort to maintain operations and/or increase or maintain the yield of each well. The City also had. The water quality improvement projects include either replacement and/or relining of existing unlined cast iron pipes. Additionally, there was $0.3 million in equipment purchases. The wastewater utility had capital improvements additions totaling $215,250. Approximately $0.5 million of this total included rehabilitating sewer lines, and the remainder was spent on upgrades to the Puncheon Run pump station and the Cedar Chase feasibility study. The City also had smaller projects including a manhole replacement work on Stoney Drive and GIS network upgrade. In addition to capital improvements, there was $86 thousand in equipment purchases. 142 6

2023 Annual Comprehensive Financial Report for the City of Dover, Delaware Introductory Section Item 3. The City maintains a five-year Capital Investment Plan which serves as its planning and budgeting tool to program upgrades and replacements to its equipment, facilities, and infrastructure. As part of this process, operating expenses are identified, and funding sources are determined. Managers are required to rank capital expenditures by criticality, based on the impacts on customer services and revenue losses. The fiscal year 2022/2023 Capital Investment Plan totaled $23.3 million to include numerous vehicle, equipment, and infrastructure and utility improvement projects. The Capital Investment Plan is presented to City Council each year during the budget workshops, and the final plan is approved by City Council along with the annual budget. In fiscal year 2023, the General Fund capital improvements budget is $6.3 million. The Public Works Stormwater department has an approved budget of $2.1 million for miscellaneous storm sewer, dam, and basin improvements to include Persimmon Park Place, and Mirror Lake Drainage Basin improvements as well as replacement of Leaf Vac equipment. The Parks and Recreation department has earmarked funding of $1.0 million for Park Improvements at the Dover Park Building to include an addition of a Splash Pad and there is also funding of $0.7 million for Schutte Park Skate Park. The Parks and Recreation project budgets include general funds, Parkland Reserve funds as well as State Grant funding. The Public Works-Streets, Sanitation, and Grounds divisions have numerous equipment and/or vehicle replacements totaling approximately $0.8 million. The Police department has funding available for the officer body worn cameras, tasers and in-car camaras totaling $0.2 million. There are smaller appropriated amounts for each of the following departments of the City to include: Information Technologies, Code Enforcement, Facilities, Procurement and Inventory as well as funding for replacement fire equipment for the Robbins Hose Company. The City received funding from the American Rescue Plan Act (ARPA) of 2023, the second tranche of which totaled $4.3 million, and the City has earmarked thus far for investment in streets, water, and sewer infrastructure projects. A few of the projects are identified as follows: $2.2 million in a future well installation, $1.3 million in Water Quality Improvement projects to include N. State Street and West Street East Alley. Expenditures in association of projects funded with the ARPA funding should be spread over the qualifying period through December 2024. The Water Fund budget includes capital improvements of $0.9 million. Of the projects identified to be completed are as follows: Wellhead Redevelopment, SCADA equipment upgrades and several smaller identified projects such as Water Tank and Water Main upgrades. The total Wastewater Fund capital improvements budget is $1.0 million and will be used for inflow and infiltration removal, various pump station replacement/improvements and miscellaneous emergency repairs. The Electric Fund is projecting $7.4 million in capital improvements for FY23. The new development budget totals $1.4 million. The McKee Run Power plant decommissioning project continues and will span several years of which the FY23 budget includes $4.0 million this as the project has slowly been progressing through DNREC environmental sampling and testing requirements after which the plant decommissioning will be planned and initiated. The electric administration division has projects totaling $1.6 million to include the REED street HVAC Overhaul and the renovation of the Electric Admin rear log renovation. The electric engineering division has an array of capital improvement projects totaling $0.7 million of this proposed amount there are software and equipment upgrades for such things as SCADA Hardware Replacement, Small Cell Wireless Improvements and ArcFM Migration to Electric Utility Network. 143 7

2023 Annual Comprehensive Financial Report for the City of Dover, Delaware Introductory Section Item 3. FINANCIAL POLICIES AND FINANCIAL PLANNING Unassigned fund balances in the General Fund of 34.2% exceeded the policy guidelines of a minimum of 8% and maximum of 12% of current year operating revenues as approved by the City Council in the City of Dover financial policies. This overage was attributed to higher than anticipated Transfer Tax receipts as well as lower than budgeted expenditures along all functions of the government due to attrition and vacancies, and as a result, the fiscal year 2024 budget will be adjusted to address the overage. The water and wastewater utility guidelines are to maintain a minimum budget balance of at least 8% and no greater than 17% (two months) of the current year operating revenues. The current budget balances as of June 30, 2023, for the utilities are water at 25.8% of the actual water revenues and wastewater at 22.9% of the actual wastewater revenues. Both budget balances are outside of the guidelines and will be addressed in the fiscal year 2024 budget. The electric utility is to maintain a minimum budget balance of at least 12% (45 days) of the current year operating revenues, less the Distribution of Earnings – PCA Credit. If the balances fall below the established percentages, the City Manager is required to submit budgets to bring the balances up to minimum within three years. The electric utility ended the year with a budget balance greater than the 12%, at 38.4%. This was attributed to higher than projected power supply and generation cost offset by lower than anticipated divisional expense and debt service expense. The City policies also require non-recurring revenues to be set aside for capital improvements as designated by City Council (reserve accounts) and a $700,000 contingency reserve in the General Fund, $250,000 each for the Water and Wastewater Fund contingency reserves and $750,000 contingency in the Electric Revenue Fund to address unforeseeable natural disasters and insurance losses. All major funds meet the contingency reserve requirements. The water and wastewater utilities impose impact fees, which are reserved by ordinance, on new developments or facilities to assist with financing future expansion projects. The electric utility maintains depreciation and future capacity reserves to assist with asset replacements and system expansions. Financial policies require the electric utility to maintain a minimum of $10.0 million in each of these reserves, with replenishment over seven years when used to finance projects. The City’s financial policies also include an Electric Rate Stabilization Reserve account. The purpose of this reserve is to level off the fluctuations in the wholesale power supply market and in turn provide stable rates to the City’s customers. The reserve balance shall be maintained at a minimum of 10% not to exceed 20% of the purchase power cost in any given year. The Finance Department extends our thanks to you for your continued interest and support in planning and conducting the financial operations of the City in a responsible and progressive manner. We also express our appreciation to the many City employees for their assistance and cooperation during the year in preparation of this report. Our appreciation is extended to Ms. Mary Ellen Gray, City Planner for her assistance with the preparation of the local economy section. The City Finance team continues to work diligently to meet the continuous deadlines upon us as well as support and assist the numerous departments within the City. The 144 8

2023 Annual Comprehensive Financial Report for the City of Dover, Delaware Introductory Section Item 3. employees of the Finance Department are commended for their true pride and dedication as they continue to work diligently on the needs and duties for their respective areas. Respectfully submitted, Patricia Marney City of Dover Finance Department 145 9

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2023 Annual Comprehensive Financial Report for the City of Dover, Delaware Introductory Section Item 3. MAYOR AND MEMBERS OF COUNCIL William F. Hare, Julia M. Pillsbury, 2nd District, Fred A. Neil, David L. Anderson, 1st District 3rd District 4th District Council President Gerald L. Rocha, Sr., Brian E. Lewis, Tricia K. Arndt, Roy Sudler, Jr., 1st District 1st District 3rd District 4th District Andre M. Boggerty, Robin R. At-Large Christiansen, Mayor 147 11

2023 Annual Comprehensive Financial Report for the City of Dover, Delaware Introductory Section Item 3. LIST OF ELECTED OFFICIALS 148 12

2023 Annual Comprehensive Financial Report for the City of Dover, Delaware Introductory Section Item 3. LIST OF APPOINTED OFFICIALS 149 13

2023 Annual Comprehensive Financial Report for the City of Dover, Delaware Introductory Section Item 3. List of Committees, Commissions, and Boards Awards Committee Rufus Mincey, Interim Executive Peggy Angel Director/Secretary Ronald R. Gough Georgia Van Sant Dover Public Library Advisory Commission Council Liaison Member Fred Neil Board of Adjustment Zachery C. Carter K.C. Sheth, Chair Jill B. Street E. Jane Warren Jaclyn K. Hale James N. Keller Vacancy Richard D. Senato Vacancy Board of Assessment Appeals Dover/Kent County MPO Council William Garfinkel, Accounting, Chair Mayor Robin R. Christiansen Thomas Burns, Real Estate Brokerage of Sales John G. Davis, Jr., Undesignated Downtown Dover Partnership Board of Directors Vacancy, Accounting City Manager, David S. Hugg III Douglas Doyle, Real Estate Brokerage of Sales City Planner, Mary Ellen Gray Vacancy, Property Appraisal/Assessments Mayor Robin R. Christiansen Councilwoman Tricia K. Arndt Construction and Property Maintenance Code Councilman Fred A. Neil Board of Appeals Councilman David L. Anderson, Chair Economic Development Committee Councilman Brian E. Lewis Mayor Robin R. Christiansen, Chair Councilman Gerald L. Rocha, Sr. Councilman Andre M. Boggerty Matthew D. Campana, Representative of Councilman David L. Anderson Homeowners Association Kim I. Adams Charles Martin, Representative of Local Real Estate Clayton E. Hammond II Industry Association City Manager, David S. Hugg III City Planner, Mary Ellen Gray Dover Fourth of July Celebration Committee Diane Laird Mayor Robin R. Christiansen, Chair Andrea Maucher, President/Vice Chair Election Board Brett Scott, Vice-President At Large: Heather D. Ennis Lori Peddicord / P. Marney, Treasurer/Secretary First District: Alfreda F. Dean Justin Strickland Second District: Cherritta L. Matthews Carolyn D. Courtney Third District: James W. Brockton Vacancy * Fourth District: M. Milford Caldwell, Jr. vacancy * Andria L. Bennett, City Clerk (Liaison Member) Vacancy * Ethics Commission Dover Housing Authority Jonathon Sadlowski Todd M. Stonesifer Erika D. Crawford Robert F. Merritt Brandy M. Walker Audrey Daniels Lisa M. Enright Phillip McGinnis Nancy H. Wagner Sandra Taylor 150 14

2023 Annual Comprehensive Financial Report for the City of Dover, Delaware Introductory Section Item 3. General Employee Pension Plan Board of Trustees Michael W. Lewis Councilman David L. Anderson Councilwoman Julia M. Pillsbury Planning Commission City Manager, David S. Hugg, III At-Large: Dr. Bobby Jones Controller/Treasurer, Lori Peddicord / P.Marney First District: Robert Gedney First District: Kathleen Welsh Timothy Welch Second District: Robert Hartman Christina Kober Second District: Andrea Maucher, Chair Third District: Joan E. Denney Historic District Commission Third District: Chris Cooper Vacancy (Chair) Business Rep./Resident Fourth District: John H. Baldwin, Sr. Ann Baker Horsey (ViceChair) Fourth District: Kenneth Roach Professional/Resident Eric S. Czerwinski, Professional Police Pension Plan - Retirement Committee Mary Terry Mason, Resident Councilman David L. Anderson Jonathan N. H. Street, Professional Councilwoman Julia M. Pillsbury Ellen H. Richardson City Manager, David S. Hugg, III Police Chief Thomas Johnson Human Relations Commission (Ret. Lt.) Timothy Mullaney, Sr., Chair At-Large: Donyale M. Hall (Ret. Captain) Larry Gray First District: Paul Fleming (Ret. Sgt.) Steve Rogers First District: Joseph C. Simmons Second District: Vacancy Public Advisory Committee of the Dover/Kent Second District: Vacancy County MPO Third District: Alan Gaddis, Chair Dr. Shanita A. Powell Third District: Wanda Mullen Dana Shelton Fourth District: Rita Mishoe Page Peter Brown Fourth District: Vacancy Albert W. Holmes, Jr. (At-Large Alternate) Kent County Tourism Board of Directors Safety Advisory and Transportation Committee Councilman Fred A. Neil Councilman Brian E. Lewis, Chair Chanda P. Jackson - Short Kent Economic Partnership Board of Directors Vonderlear E. Smack Mayor Robin R. Christiansen Silver Lake Commission Legislative, Finance, and Administration Committee Marie E. Kozel, Chair Councilman David L. Anderson, Chair Kathleen Marie Doyle Jonathan D. Contant John C. DeMarie Daniel T. Shevock Welton N. Satchell Michael W. Lewis Other Post-Employment Benefits (OPEB) Board Joan M. Winters Councilman David L. Anderson Councilwoman Julia M. Pillsbury Utility Committee City Manager, David S. Hugg, III Councilman Gerald L. Rocha, Sr. Chair Controller/Treasurer, Lori Peddicord / P.Marney Michael J. Pugh Human Resources Director, H. Naomi Poole Dr. Esosa M. Iriowen Parks, Recreation and Community Enhancement Councilwoman Tricia K. Arndt, Chair Michael Tholstrup 151 15

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2023 Annual Comprehensive Financial Report for the City of Dover, Delaware Introductory Section Item 3. VISION The City of Dover is a place where people want to live! Through the team effort of its elected officials, employees, and citizens, Dover is a clean and safe community, with a future of balanced growth and opportunity where all citizens are heard, enjoy a high quality of life, and diversity is valued. 153 17

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2023 Annual Comprehensive Financial Report for the City of Dover, Delaware Item 3. FINANCIAL SECTION THIS SECTION INCLUDES THE FOLLOWING: PART A – REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS PART B – MANAGEMENT’S DISCUSSION AND ANALYSIS PART C – BASIC FINANCIAL STATEMENTS Government-wide Financial Statements Fund Financial Statements Notes to Financial Statements PART D – REQUIRED SUPPLEMENTARY INFORMATION PART E – SUPPLEMENTARY INFORMATION Combined Fund Statements Budgetary Schedules 155 19

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2023 Annual Comprehensive Financial Report for the City of Dover, Delaware Financial Section Item 3. PART A REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS 157 21

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Item 3. 2023 Annual Comprehensive Financial Report for the City of Dover, Delaware Financial Section – Part A – Report of Independent Public Accountants 159 23

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2023 Annual Comprehensive Financial Report for the City of Dover, Delaware Financial Section Item 3. PART B MANAGEMENT’S DISCUSSION AND ANALYSIS 163 27

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2023 Annual Comprehensive Financial Report for the City of Dover, Delaware Financial Section – Part B – Management’s Discussion and Analysis Item 3. The City of Dover Management’s Discussion and Analysis For the Year Ended June 30, 2023 The following is a discussion and analysis of the City of Dover’s (the City’s) financial activities for the fiscal year ended June 30, 2023. Readers are encouraged to consider the information presented here in conjunction with additional information provided in our letter of transmittal, which can be found on pages 3-9 of this report, and the City’s financial statements which follow this section. FINANCIAL HIGHLIGHTS The City’s assets and deferred outflows of resources exceeded its liabilities and deferred inflows of resources by $286.0 million (net position). Included in this amount is a positive $51.2 million balance in “unrestricted net position”. The total Net Position represents the funds available to meet the City’s ongoing obligations to citizens and creditors. Governmental activities reported a positive unrestricted net position of $11.0 million and the business-type activities; Water, Wastewater and Electric funds, reported a positive $40.2 million unrestricted net position. The difference between the unrestricted amounts and the total net position is $234.8 million, of which $71.3 million is restricted primarily for debt service purposes, and $157.3 million is net investment in capital assets. Total assets increased for the governmental activities by $2.8 million and the business-type activities total assets increased in the amount of $9.2 million. Deferred Outflows for both the governmental activities and business-type activities increased by $3.2 million and $0.5 million respectively. Deferred Inflows decreased for the governmental activities by $11.0 million, and business-type activities decreased by $1.8 million. Liabilities increased for the governmental activities by $10.3 million, and for the business-type activities, the liabilities decreased by $0.4 million. • For governmental activities, the City reported: a increase of $1.0 million invested in capital assets, an increase in restricted net assets of $1.6 million, and an increase of $4.1 million in unrestricted net position. As a result of its operations, the City recognized a positive change in net position of governmental activities of $6.7 million. The current year’s change in net position is $11.9 million less than the previous years’ change in net position and is primarily due to increases in program expenditures of $12.6 million, the expenses increased across all functions of government especially for Public Safety and Public Works function. • For business-type activities, the City reported: an increase of $1.8 million invested in capital assets, an increase in restricted net position of $0.8 million and an increase of $9.1 million in unrestricted net position. As a result of its operations, the City recognized a positive change in net position of business-type activities of $11.7 million, which is an increase from last years’ negative change of $2.1 million driven primarily by increases of total revenues of $6.4 million which includes a net increase of $0.3 million for water, wastewater, and electric charges for services. Other contributing factors were a significant gain on investments totaling $6.1 million. Total expenses decreased in the amount of $5.6 million substantially driven by a decrease in electric expenses of $4.7 million, as well as an increase in indirect expense allocations of $0.7 million rounding out the increase in net position of $12.0 million, which is $14.1 million more than the prior years’ net increase. 165 29

2023 Annual Comprehensive Financial Report for the City of Dover, Delaware Financial Section – Part B – Management’s Discussion and Analysis Item 3. OVERVIEW OF THE FINANCIAL STATEMENTS This discussion and analysis section is intended to serve as an introduction to the City’s Annual Comprehensive Financial Report (ACFR). The ACFR consists primarily of three required components: 1) management’s discussion and analysis (this section), 2) the basic financial statements; and 3) required supplementary information. The ACFR also includes optional supplementary information that provides summary and detail level information, and a statistical section. The basic financial statements are presented in two categories that present different views of the City’s financial condition: • The two government-wide financial statements (pages 47-48) provide both long-term and short- term information about the City’s overall financial position and operations. • The remaining (pages 49-57) fund financial statements focus on specific activities of City government, reporting the City’s operations in more detail than the government-wide statements. The City financial statements can be divided into three categories: governmental funds, proprietary funds, and fiduciary funds. - The Governmental fund statements (pages 49-52) tell how general government services, like community services, planning, public safety, and public works, were financed in the short term, as well as what remains for future spending. - Proprietary fund statements (pages 53-55) offer short and long-term financial information about the activities the government operates like a business, which for the City of Dover are the Electric, Water & Wastewater Funds. - The Fiduciary fund statements (pages 56-57) provide information about the financial relationships in which the City acts solely as a trustee or custodian for the benefit of others, to whom the resources belong. The City is the trustee, or fiduciary, for its Employee and Police Pension plans and Other Post-Employment Benefits plan and acts in a custodial capacity for the Fourth of July Celebration Committee and the Dover Days Celebration Fund, none of which are component units of the City. All the City’s fiduciary activities are reported in separate Statements of Fiduciary Net Position and Changes in Fiduciary Net Position. These activities are excluded from the City’s other financial statements because the City may not use these assets to finance its operations. The City is responsible for ensuring that the assets reported in these funds are used for their intended purposes. The financial statements also include notes (pages 61-123) that explain some of the information in them and provide more detailed data. The statements are followed by a section of required supplementary information (pages 127-138) that further explains and supports the information in the financial statements. Other supplementary information includes details on non-major funds and other information that can be found on pages 141 through 170. The following table summarizes the major features of the City’s financial statements, including the portion of the City government they cover and the types of information they contain. The remainder of this overview section of management’s discussion and analysis explains the structure and content of each of the statements: 166 30

2023 Annual Comprehensive Financial Report for the City of Dover, Delaware Financial Section – Part B – Management’s Discussion and Analysis Item 3. MAJOR FEATURES OF CITY’S GOVERNMENT-WIDE AND FUND FINANCIAL STATEMENTS Government-wide Statements Governmental Funds Proprietary Funds Fiduciary Funds Scope Entire City The activities of the Activities the City Instances in which government City that are not operates like private the City is the (except fiduciary proprietary or businesses, such as trustee or funds) fiduciary, such as electric, water and custodian for public safety and wastewater funds someone else’s public works resources Required financial • Statement of • Balance sheet • Statement of • Statement of statements net position • Statement of net position fiduciary net • Statement of revenues, • Statement of position activities expenditures, revenues, • Statement of and changes in expenses, and changes in fund balances changes in net fiduciary net position position • Statement of cash flows Accounting basis Accrual Modified accrual Accrual accounting Accrual accounting and measurement accounting and accounting and and economic and economic focus economic current financial resources focus resources focus resources focus resources focus 167 31

2023 Annual Comprehensive Financial Report for the City of Dover, Delaware Financial Section – Part B – Management’s Discussion and Analysis Item 3. Continued Government-wide Statements Governmental Funds Proprietary Funds Fiduciary Funds Type of All assets, deferred Generally, assets and All assets, deferred All assets and asset/deferred outflows of deferred outflows of outflows of liabilities, both outflows of resources, resources expected to resources, liabilities, short-term and resources & liabilities, and be used up and and deferred inflows long-term liability/ deferred inflows of liabilities and deferred of resources both deferred inflows of resources both inflows of resources financial and capital, resources financial and that come due or and short-term and information capital, and short- available during the long-term term and long- year or soon term thereafter, no capital assets, or long-term liabilities included Type of All revenues and Revenues for which All revenues and All revenues and inflow/outflow expenses during cash is received expenses during the expenses during information the year, during or soon after year, regardless of the year, regardless regardless of when the end of the year; when cash is of when cash is cash is received or expenditures when received or paid received or paid paid goods or services have been received and payment is due during the year or soon thereafter GOVERNMENT-WIDE STATEMENTS The government-wide statements report information about the City as a whole using accounting methods similar to those used by private-sector companies. The statement of net position includes all the City of Dover’s assets, liabilities, and deferred inflows and outflows of resources with the difference reported as net position. Net position is one way to measure the City’s financial health or position. Over time, increases or decreases in the City’s net position is an indicator of whether its financial health is improving or deteriorating, respectively. To assess the overall health of the City, one needs to consider additional non-financial factors such as changes in the City’s property tax base and the condition of the City’s physical assets and infrastructure. The government-wide financial statements of the City are divided into two categories: • Governmental activities—Most of the City’s basic services are included here, such as general government, public safety, planning and code enforcement, public works, library and recreation, community and economic development, central services, and financial administration. Property taxes, business licenses, permits, sanitation fees, fines, utility transfers, and state and federal grants finance most of these activities. • Business-type activities—The City charges fees to customers to help it cover the costs of certain services it provides. The City’s electric, water, and wastewater services are included here. 168 32

2023 Annual Comprehensive Financial Report for the City of Dover, Delaware Financial Section – Part B – Management’s Discussion and Analysis Item 3. FUND FINANCIAL STATEMENTS The fund financial statements provide more detailed information about the City’s most significant funds— not the City as a whole. Funds are accounting devices that the City uses to keep track of specific sources of funding and spending for specific purposes. Some funds are required by State law and by covenants. The City Council may also establish other funds to control and manage spending for other purposes. The City has three kinds of funds: • Governmental Funds - Most of the City’s basic services are included in governmental funds, which focus on (1) how cash and other financial assets that can readily be converted to cash flow in and out, and (2) the balances left at year end that are available for spending. Consequently, the governmental funds statements provide a detailed short-term view that helps one determine whether there are more or fewer financial resources that can be spent soon to finance the City’s programs. Because this information does not encompass the additional long-term focus of the government-wide statements, we provide additional information on a separate schedule, which explains the relationship (or differences) between them. - Governmental Fund Balance classifications are reported to the extent to which they are constrained as promulgated by GAAP. - The City’s General Fund is the only governmental fund considered to be a major fund under the requirements of GAAP. • Proprietary Funds – Services for which the City charges customers a fee, are generally reported in proprietary funds. Proprietary funds, like the government-wide statements, provide both long and short-term financial information. - The City’s enterprise funds (one type of proprietary fund) are the same as its business-type activities, but provide more detail and additional information, such as cash flows. - The City’s Electric, Water, and Wastewater enterprise funds are considered major funds under the requirements of GAAP. • Fiduciary Funds – The City is responsible for certain assets which are held for the benefit of parties outside the government. The City is responsible for ensuring that the assets reported in these funds are used for their intended purposes. All the City’s fiduciary activities are reported separately in a statement of fiduciary net position and a statement of changes in fiduciary net position. These activities are excluded from the City’s government-wide financial statements because the City cannot use these assets to finance its operations. An example of fiduciary funds is the city’s general pension plan. 169 33

2023 Annual Comprehensive Financial Report for the City of Dover, Delaware Financial Section – Part B – Management’s Discussion and Analysis Item 3. FINANCIAL ANALYSIS OF THE CITY AS A WHOLE The City produces government-wide financial statements using the full accrual basis of accounting and economic resource management focus. As year-to-year financial information is accumulated on a consistent basis, changes in net assets may be observed and used to discuss the changing financial position of the City as a whole. The Net Position of the City of Dover as of June 30, 2022 and 2023 are presented below (in millions of dollars): Governmental Business-Type Activities Activities Total 2022 2023 2022 2023 2022 2023 Assets Non-Capital Assets $ 35.5 $ 37.8 $ 137.0 $ 146.5 $ 172.5 $ 184.3 Capital Assets 58.3 58.8 129.9 129.6 188.2 188.4 Total Assets 93.8 96.6 266.9 276.1 360.7 372.7 Deferred Outflow of Resources 11.6 14.8 3.2 3.7 14.8 18.5 Liabilities Current Liabilities 3.8 4.7 10.8 11.5 14.6 16.2 Non-Current Liabilities 16.2 25.6 49.0 47.9 65.2 73.5 Total Liabilities 20.0 30.3 59.8 59.4 79.8 89.7 Deferred Inflow of Resources 21.7 10.7 6.4 4.6 28.1 15.3 Net Position Net investment in Capital Assets 52.2 53.2 102.3 104.1 154.5 157.3 Restricted 4.7 6.3 70.4 71.2 75.1 77.5 Unrestricted 6.8 10.9 31.2 40.3 38.0 51.2 Total Net Position $ 63.7 $ 70.4 $ 203.9 $ 215.6 $ 267.6 $ 286.0 170 34

2023 Annual Comprehensive Financial Report for the City of Dover, Delaware Financial Section – Part B – Management’s Discussion and Analysis Item 3. The Changes in Net Position for the City of Dover for the years ended June 30, 2022 and 2023 are presented as follows (in millions of dollars): Governmental Business-Type Activities Activities Total 2022 2023 2022 2023 2022 2023 Revenues: Program Revenues Charges for Services $ 11.3 $ 13.7 $ - $ - $ 11.3 $ 13.7 Water/Wastewater Charges for Services - - 16.9 19.6 16.9 19.6 Electric Charges for Services - - 80.8 78.4 80.8 78.4 Operating Grants and Contributions 8.3 8.8 - - 8.3 8.8 Capital Grants and Contributions 0.6 0.3 - - 0.6 0.3 General Revenues Property Taxes 15.4 16.1 - - 15.4 16.1 Transfer Taxes 4.3 2.8 - - 4.3 4.2 Gain (Loss) on sale of capital assets - 0.6 - - - 0.6 Earnings on Investments-Other (0.4) - (3.5) 2.6 (3.9) 2.6 Total Revenues 39.5 42.3 94.2 100.6 133.7 142.9 Expenses General Government 5.3 5.4 - - 5.3 5.4 Public Safety 15.4 26.2 - - 15.4 26.2 Public Works 8.7 9.3 - - 8.7 9.3 Library and Recreation 3.3 4.2 - - 3.3 4.2 Community and Economic Development 0.6 0.7 - - 0.6 0.7 Central Services 1.5 1.8 - - 1.5 1.8 Financial Administration 3.3 3.9 - - 3.3 3.9 Interest Charges 0.2 0.1 - - 0.2 0.1 Plus (less) Indirect Expense Allocation (5.4) (6.1) 5.4 6.1 - - Water/Wastewater - - 11.0 9.4 11.0 9.4 Electric - - 67.9 63.2 67.9 63.2 Total Expenses 32.9 45.5 84.3 78.7 117.2 124.2 Change in Net Position before Transfers 6.6 (3.2) 9.9 21.9 16.5 18.7 Transfers 12.0 9.9 (12.0) (9.9) - - Change in Net Position 18.6 6.7 (2.1) 12.0 16.5 18.7 Net Position, beginning of year 45.1 63.7 206.0 203.6 251.1 267.3 Net Position, End of Year $ 63.7 $ 70.4 $ 203.9 $ 215.6 $ 267.6 $ 286.0 GOVERNMENTAL ACTIVITIES The preceding table shows changes in net position for the year ended June 30, 2023, compared to the year ended June 30, 2022. Governmental net position increased by $6.7 million; this is a decrease of $11.9 million from the prior years’ positive change in net position of $18.6 million. Total revenues of $42.3 million were more than the prior year by $2.8 million. The increase in revenues is primarily due to increases in: charges for services, operating grants and contributions, as well as property tax receipts, which exceeded the FY22 revenues by $0.7 million. The increases were partially offset by decreases in transfer taxes and investment earnings reducing the revenues by $1.9 million. Total expenses of $45.5 million reflects an increase from the prior year by $12.6 million across all but 171 35

2023 Annual Comprehensive Financial Report for the City of Dover, Delaware Financial Section – Part B – Management’s Discussion and Analysis Item 3. two functions of government –Indirect Expense Allocation and Interest Charges – which decreased its FY23 spending by about $0.8 million. The increase in expenditures is driven by increases in expenditures for general governmental, public safety and law enforcement, library and recreation, public works and central services. The chart that follows allocates revenues to program costs as applicable. It shows that some City functions are in part self-supporting, either through customer charges, or inter-fund receipts through the utilities (presented in millions of dollars): Expenses, Program Revenue & Interfund Receipts - Governmental Activities $30 $26.2 $25 $20 Millions $15 $10 $9.3 $8.3 $5.4 $5.8 $5 $4.2 $4.4 $3.9 $3.0 $2.9 $1.4 $1.8 $0.9 $1.3 $0.9 $0.7 $0 General Government Public Safety Public Works Library & Recreation Community & Central Services Financial Economic Administration Development Revenues Expenses Interfund Receipts The following chart shows the sources of funding for program costs for the last fiscal year. As can be seen, a substantial portion of funding for governmental operations is provided by property taxes, charges for services and transfers from the utilities. 172 36

2023 Annual Comprehensive Financial Report for the City of Dover, Delaware Financial Section – Part B – Management’s Discussion and Analysis Item 3. Revenues by Source - Governmental Activities Interfund Receipts 11% Charges for Services 24% Utility Transfer In 17% Operating Grants and Transfer Taxes Contributions 5% 15% Property Taxes Capital Grants and 28% Contributions 0% BUSINESS-TYPE ACTIVITIES The business-type activities generated an increase in net position of $12.0 million, which was $14.1 million more than the previous year’s negative change in net position of $2.1 million. The increase was primarily due to the combination of $6.4 million in total revenue increases, as well as expense decreases totaling $5.6 million. Transfers included $2.1 million transferred out of the water & wastewater funds and $8.0 million out of the electric fund to the general fund. The indirect expense allocation increased by $0.7 million. The water utility fund realized a positive change in net position of approximately $4.1 million; an increase of $1.1 million from the prior year. Operating revenues increased by $1.2 million primarily due to an increase in water fees revenue of $0.5 million, and an increase in grants of $0.6 million, offset by decreases in rent revenue and miscellaneous income. There was a system-wide increase in consumption for water which in turn resulted in higher billable usage of approximately 95 million total gallons. Consumption increases were primarily driven by new customer usage as there were 105 new connections this year. The billing rates in the water division were changed slightly; an increase in the water charge of $0.16 per 1,000 gallons was implemented for in-city customers and $0.24 per 1,000 gallons for outside-city customers based on tier 1 of the approved FY2023 rates tariff. Operating expenses in the water fund decreased by $1.4 million, which was driven mostly by a $1.9 million decrease in water division expenses offset by General Administration increase of $.3 million. Finally, other contributors to the increase in net position was the increase of nonoperating expenses of $0.3 million driven mostly by a large increase in interest earned. It’s worth noting that the city changed it’s water billing structure to a tiered use structure in July 2020 as approved by the city council. The wastewater utility fund realized a positive change in net position of approximately $2.7 million; an increase of $1.2 million from the prior year. Operating revenues increased by just under $1.5 million primarily due to an increase in: wastewater fees of $0.2 million, and ground water adjustment fees of 173 37

2023 Annual Comprehensive Financial Report for the City of Dover, Delaware Financial Section – Part B – Management’s Discussion and Analysis Item 3. $0.1 million. There was a system-wide increase in consumption for wastewater which in turn resulted in higher billable usage of approximately 26 million total gallons. Consumption increases were primarily driven by new customer usage as there were 77 new connections in the year. The billing rates in the wastewater division were changed slightly; an increase in the wastewater charge of $0.19 per 1,000 gallons was implemented for in-city customers and $0.27 per 1,000 gallons for outside-city customers based on tier 1 of the approved FY2023 rates tariff. Operating expenses in the wastewater fund increased from the prior year by $0.2 million. The driving factor to the increase in operating expense was a $0.1 million increase in wastewater expense and general administration by $.1 million. Finally, other contributors to the change in net position was the increase of transfers out of the fund by $0.5 million due to the increase in maintenance costs of the ERP system. The electric utility fund realized a positive change in net position of $4.8 million; a increase of $9.5 million from the prior year. Operating revenues decreased by $2.4 million attributed to decreases in general service billings which includes billing customers for various installations of electric infrastructure for new housing developments, smaller one-house installations as well as business installations. Less kwh was purchased for residential customers which decreased the revenue by $1.2 million as well as a decrease in primary customers by $.5 million. Operating expenses in the Electric Fund increased by about $16.7 million. A significant $12.1 million increase in power supply and generation costs, coupled with increases in the following divisions: $1.4 million in transmission and distribution, $0.7 million in engineering, and small increases in Utility tax and System Operations. There were also increases of $1.2 million in General Administration. A continued increase in maintenance costs for the ERP system of $0.1 million is also noted. Finally, nonoperating expenses were $25.9 million higher than the prior year primarily due to increased distribution costs to customers of $21.5 million. A reduction in fair value of investments of $3.6 million and a decrease in transfers out to the General Fund of $3.0 million further reduced the decrease in Operating income of $4.4 million which shows a positive change in net position of $4.8 million. This is $9.6 million more than the prior year’s negative change of $4.8 million. Additionally, a PCA debit was implemented by council in July 2022 through March 2023 to offset increases in costs by $16.5 million. This aided the city in remaining in compliance with bond covenants as indicated on table 15 of the statistical section. Electric rates remain stable at levels set in July 2020. 174 38

2023 Annual Comprehensive Financial Report for the City of Dover, Delaware Financial Section – Part B – Management’s Discussion and Analysis Item 3. Operating Revenues, Expenses and Transfers - Business- Type Activities $100.0 $91 $90.0 Operating $78 Revenues & $80.0 M illions Transfers $70.0 $60.0 Operating $50.0 Expenses & Transfers $40.0 $30.0 $20.0 $8 $11 $9 $10.0 $5 $- Electric Revenue Water Fund Wastewater Fund Fund Financial Analysis of the City’s Funds GOVERNMENTAL FUNDS As noted earlier, the City uses fund accounting to ensure and demonstrate compliance with finance- related legal requirements. Government funds focus on expendable resources and near-term inflows and outflows of those resources. As such, fund balance is generally a good indicator of net resources available for spending at the end of the fiscal year, subject to any stated restrictions on its use. The combined fund balance of the City’s governmental funds as of June 30, 2023, was slightly over $28.5 million. This represented an increase of $0.9 million during the year. Approximately 37.4% of the combined fund balances, $10.7 million, constitutes unassigned fund balance, which is available to meet the City’s current and future needs. The remainder of fund balance is non-spendable, restricted, committed or assigned to indicate that it is not available for operational spending because it is constrained by legally enforceable contracts, other governmental agreements and legislation, City Council resolution, management, or it is not convertible to cash within a reasonable period of time. Further detail of fund balances is presented in the Notes to the Basic Financial Statements in Note 8. The General Fund is the primary operating fund of the City, accounting for such activities as general government, public safety, public works, library, recreation, planning, community and economic development, central services, and financial administration. The General Fund balance as of June 30, 2023, was $22.3 million. Revenue increased by $3.2 million, primarily due to increases in fines, 175 39

2023 Annual Comprehensive Financial Report for the City of Dover, Delaware Financial Section – Part B – Management’s Discussion and Analysis Item 3. licenses and permits, sanitation fees, miscellaneous services; property tax revenue, grants received and court of chancery fees. Other less significant increases were in police fines, library – general revenues, and library revenues – county reimbursement, which in aggregate exceeded the FY22 revenues by $0.3 million. The general fund revenue increases were partially offset by $0.4 million of increases in Investment income. Total General Fund expenditures of $45.9 million reflect an increase from the prior year of $4.0 million, which was primarily driven by increases in expense of: $2.0 million in public safety and law enforcement, $1.3 million in public works, $0.4 in recreation services, $0.2 million in retiree health care, $0.1 million in financial administration and less significant increases in engineering, and insurance totaling less than $0.1 million collectively. The expense increases were offset in decreases in general government and minor differences in all other functional areas round out the expense variance. PROPRIETARY FUNDS The City’s proprietary funds provide the same type of information found in the government- wide financial statements, but in more detail. As of June 30, 2023, the water fund has a net position of $39.8 million, of which $7.8 million is unrestricted. The fund’s net position increased $4.1 million as explained on page 37. As of June 30, 2023, the wastewater fund had a net position of $38.1 million, of which $6.6 million is unrestricted. The wastewater fund’s net position increased $2.7 million during the year as explained on page 38. As of June 30, 2023, the electric revenue fund has a net position of $137.7 million, of which $25.8 million is unrestricted. This fund experienced a increase in net position of $4.8 million during the year as explained on page 38. GENERAL FUND BUDGETARY HIGHLIGHTS During this fiscal year, the City Council amended the budget two times. The budget amendment ordinances were primarily for the following purposes: To re-appropriate budget balances for ongoing capital projects, to amend the grant budgets and reserve accounts for the actual results from the prior fiscal year and to adjust program revenues and expenses based on actual amounts. To amend revenue and expense accounts based on actual experience during fiscal year 2023. The General Fund financials in the Governmental Funds Balance Sheet (page 49) and Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds (page 51) include both the General Fund operating activities and the Governmental Capital Project Fund activities. The General Fund – Schedule of Revenues, Expenditures and Changes in Fund Balances – Budget & Actual is included in Part D – Required Supplementary Information (pages 127-128). The Combining Schedules – Combining General Fund Balance Sheet and Combining Schedule of Revenues, Expenditures and Changes in Fund Balances of the General Fund are included in Part E – Supplementary Information (pages 142-143). 176 40

2023 Annual Comprehensive Financial Report for the City of Dover, Delaware Financial Section – Part B – Management’s Discussion and Analysis Item 3. The Governmental Capital Projects Fund – Schedule of Revenues, Expenditures and Changes in Fund Balances-Budget and Actual is included in Part E – Supplementary Information (page 144). General Fund budgeted expenditures were revised to reflect an aggregate increase of $0.5 million. The divisional expenditure increases were to Recreation, Life Safety, Police, City Manager, Fleet Maintenance, Finance, Public Works – Administration, Facilities Management, and Customer Services, collectively $0.6 million with minor increases in Inspections, Police, Public Works – Engineering, Human Resources and Mayor. The operating divisions with a budgeted decrease were Stormwater and minor decreases in Planning and Council. Additionally, there were decreases in non-divisional budgeted expenditures; Appropriation to Police Pension fund. The non-divisional budgeted expenditures that increased are as follows: appropriations to the Police Pension Funds. Actual revenues and other financing sources received were slightly above the final budgeted amounts in the General Fund by more than $1.3 million. The budgeted revenues that were revised to reflect an aggregate increase of $2.3 million are as follows: transfer taxes, court of chancery fees, miscellaneous charges, permits and other fees, miscellaneous state grant revenue, municipal street aid and interfund service receipts. The budgeted revenues that were revised to reflect a decrease are as follows: fines and police revenue, , and civil traffic penalties which aggregate to $0.3 million. The net increase budgeted in revenues was $2.3 million. CAPITAL ASSET AND DEBT ADMINISTRATION At the end of the current fiscal year, the City’s governmental and proprietary funds had invested $58.8 million and $129.6 million, respectively, in a variety of capital assets and infrastructure, as reflected in the following schedule. The comparison from last year to this year exhibits a net increase of $0 .5 million for governmental activities and a net decrease of $0.3 million for the business-type activities. As the departments continue to review their assets within both the Governmental and Business-Type Activities, subsequent disposal of assets that were either replaced or disposed of in prior years, but were never removed from the asset records, or did not qualify as a Capital asset based on our current definitions For the Governmental Activities, the increase in assets reported was in vehicles and equipment $1.4 million offset by a decrease in General Infrastructure of $2.5 million. The value of construction projects that remained open as of June 30, 2023, increased by $1.2 million. The Business-Type Activities decreased by $0.3 million primarily because the City capitalized a number of Construction in Progress projects but did not start as many new projects due to the economic downturn created during the pandemic. Additional detailed data for all capital assets of the City is presented in the Notes to the Basic Financial Statements in Note 4. 177 41

2023 Annual Comprehensive Financial Report for the City of Dover, Delaware Financial Section – Part B – Management’s Discussion and Analysis Item 3. The following schedule is presented in millions of dollars: Governmental Business-Type Activities Activities Total 2022 2023 2022 2023 2022 2023 Depreciable Assets, Net Buildings $ 21.5 $ 21.9 $ - $ - $ 21.5 $ 21.9 Equipment & Vehicles 4.1 5.5 7.5 7.5 11.6 13.0 General Infrastructure 27.4 24.9 - - 27.4 24.9 Utility, Plant, Buildings, and Infrastructure - - 117.0 111.6 117.0 111.6 Other 0.1 0.1 0.9 0.8 1.0 0.9 Non-depreciable Assets Land 4.6 4.6 1.6 1.6 6.2 6.2 Construction in Progress 0.6 1.8 2.9 8.1 3.5 9.9 $ 58.3 $ 58.8 $ 129.9 $ 129.6 $ 188.2 $ 188.4 The chart below shows that the City’s Total Net OPEB Liability increased by $0.2 million, with the majority attributable to the Business-Type Activities of $0.4 million offset by a decrease in the Governmental Activities by $0.2 million. The City’s Total Net Pension Liability increase of $10.2 million was attributed to the Governmental Activities increase by $9.8 million and the Business-Type Activities increased by $.4 million. Additional detailed information regarding the City’s Other Post-Employment Benefits and Retirement Plans is presented in the Notes to the Basic Financial Statements in Notes 15 and 17, respectively. The City Charter limits the amount of general obligation debt the City can issue in any one year to 25% of the taxable assessed value of real property within the City. The aggregate of amounts borrowed for which the full faith and credit of the City is pledged cannot exceed 5.0% of assessed value of real property within the City boundaries. The City has used 3.41% of its debt limit. The City of Dover’s non-current liabilities as of June 30, 2022, and 2023 are presented below (in millions of dollars): Governmental Business-Type Activities Activities Total 2022 2023 2022 2023 2022 2023 Non-current liabilities Liability for Compensated Absences $ 2.6 $ 2.9 $ 0.7 $ 1.0 $ 3.3 $ 3.9 Leases - 0.1 - - - 0.1 Bonds (Net of Discount) 6.1 5.6 26.7 24.7 32.8 30.3 Bond Premium - - 0.9 0.8 0.9 0.8 Net OPEB Liability 9.1 8.9 1.3 1.7 10.4 10.6 Net Pension Liability 0.3 10.1 10.2 10.6 10.5 20.7 Asset Retirement Obligation - - 11.6 11.6 11.6 11.6 $ 18.1 $ 27.6 $ 51.4 $ 50.4 $ 69.5 $ 78.0 Additional detailed data for all debt of the City is presented in the Notes to the Basic Financial Statements in Note 7. 178 42

2023 Annual Comprehensive Financial Report for the City of Dover, Delaware Financial Section – Part B – Management’s Discussion and Analysis Item 3. ECONOMIC FACTORS AND NEXT YEAR’S BUDGETS AND RATES The City developed the fiscal year 2024 budget in accordance with the City’s financial policies ensuring all budgets are balanced and reserve requirements were adhered to. The City will receive over $8 million from the Federal government through the American Rescue Plan Act (ARPA), to help buffer the negative impact of the coronavirus pandemic. These funds will be spent on various capital improvement projects in the Governmental, Water, and Wastewater funds. Additionally, the City was awarded $3 million from the State of Delaware Community Reinvestment Fund (CRF), which will also be used for capital improvement projects in the Governmental, Water, and Wastewater funds. The following changes over fiscal year 2023 were incorporated into the fiscal year 2024 budget. • The FY23 General Fund budget includes a property tax increase of $.02 per $100 of assessed value on the taxable properties, as well as an increase in the base rate for Sanitation, to support the City’s taxpayers and citizens beyond FY23. These increases will assist the City in: o Mitigating the impact of inflation being the highest in 40 years at almost 9%, affecting the cost of supplies, construction, and services. o Overcoming the drastic rise in fuel costs over the last year; regular gasoline rose over 63%, while diesel fuel rose over 274% since last year. o Supply chain delays and shortages affecting not only the ability to complete projects in a timely manner, resulting in higher than budgeted costs, but also scheduled replacement of vehicles and equipment. This results in more frequent break downs, higher maintenance costs, and reduced overall efficiency. o Preparing for personnel and resources needed to accommodate for population growth that’s estimated to reach 40,000 people in the next couple of years. o Significant impacts of personnel related costs including fixed union contract increases, built- in step increases, and pension and other benefit cost increases. Additionally, a competitive job market is driving up salaries, hiring bonuses, and benefit offerings, in order to reduce employee turnover and attract qualified applicants. o Keeping up with the continuing technological advances, while phasing out older, and obsolete technologies as they are not supported by vendors. o Complying with several unfunded mandates such as the minimum wage increases, expanded Family Leave provisions & legislation requiring electric vehicle charging stations. • The budgets for the Water and Wastewater Funds include another year of rate increases. This is the third of a four-year plan to adjust rates. The additional revenues from the rate increase will assist with infrastructure improvements, will help to alleviate some of the impacts of the inflationary and supply chain issues noted above, and help to establish a prudent reserve over time. • This budget includes minimal new personnel, in consideration of the financial challenges, but it allows for expansion where it’s needed most, and contraction wherever possible. As an example a new supervisor for Stormwater Coordination, Fire Department Administrator, and ME03’s for Public Works were added. • Decommissioning of McKee Run Power Plant #3 continues. The City continues to closely monitor the local economy and its impact on growth and revenues. Revenue enhancements, rate increases, and potential cost reductions will continue to be reviewed in order to maintain the City’s financial policies. 179 43

2023 Annual Comprehensive Financial Report for the City of Dover, Delaware Financial Section – Part B – Management’s Discussion and Analysis Item 3. CONTACTING THE CITY’S FINANCIAL MANAGEMENT This financial report is designed to provide our citizens, taxpayers, customers, and investors and creditors with a general overview of the City’s finances and to demonstrate the City’s accountability for the money it receives. If you have questions about this report or need additional financial information, contact The City of Dover Finance Department at (302) 736-7018 (TTY/TDD Operator 1-800-855-1155). 180 44

2023 Annual Comprehensive Financial Report for the City of Dover, Delaware Financial Section Item 3. PART C BASIC FINANCIAL STATEMENTS 181 45

2023 Annual Comprehensive Financial Report for the City of Dover, Delaware Financial Section – Part C – Basic Financial Statements Item 3. This page intentionally left blank 182 46

2023 Annual Comprehensive Financial Report for the City of Dover, Delaware Financial Section – Part C – Basic Financial Statements Item 3. City of Dover, Delaware Statement of Net Position June 30, 2023 Governmental Business-Type Activities Activities Total Assets: Cash and Cash Equivalents $ 16,150,728 $ 26,520,821 $ 42,671,549 Investments 9,965,059 36,775,232 46,740,291 Receivables, Net 3,391,631 7,529,493 10,921,124 Internal Balances (1,723,736) 1,723,736 - Due from Other Governments 137,303 - 137,303 Inventory 173,947 3,924,929 4,098,876 Prepaid Items 875,183 480,883 1,356,066 Restricted Cash and Cash Equivalents 6,926,320 16,235,088 23,161,408 Restricted Investments 19,322 54,998,535 55,017,857 Capital Assets, Not Being Depreciated 6,394,478 7,865,856 14,260,334 Capital Assets, Net of Depreciation 52,401,929 119,856,213 172,258,142 Total Assets 94,712,164 275,910,786 370,622,950 Deferred Outflows of Resources: Pension related Deferred Outflows 8,444,969 2,475,324 10,920,293 OPEB related Deferred Outflows 6,327,325 1,237,413 7,564,738 Total Deferred Outflows of Resources 14,772,294 3,712,737 18,485,031 Liabilities: Accounts Payable and Accrued Liabilities 2,369,358 4,810,487 7,179,845 Unearned Revenue 1,647,928 1,133,323 2,781,251 Customer Deposits - 2,704,330 2,704,330 Other 70,225 321,188 391,413 Liabilities Due within One Year 2,002,489 2,603,750 4,606,239 Non-Current Liabilities Due in more than One Year 6,567,440 23,940,561 30,508,002 Due in more than One Year - OPEB 8,937,593 1,747,892 10,685,485 Due in more than One Year - Pension 10,099,896 10,576,726 20,676,622 Due in more than One Year - ARO - 11,618,846 11,618,846 Total Liabilities 31,694,930 59,457,103 91,152,033 Deferred Inflows of Resources: Pension related Deferred Inflows 2,355,301 2 2,355,303 OPEB related Deferred Inflows 6,284,467 1,229,032 7,513,499 Lease related Deferred Inflows 2,038,940 3,354,066 5,393,006 Total Deferred Inflows of Resources 10,678,708 4,583,100 15,261,808 Net Position: Net Investment in Capital Assets 53,181,986 102,200,187 155,382,173 Restricted for: Capital Projects 70,115 71,233,623 71,303,738 Public Safety Grants 231,957 - 231,957 Verizon Grant 73,979 - 73,979 Library Grant 168,968 - 168,968 Community Development Grants 1,142 - 1,142 ARPA Grant 2,417,074 - 2,417,074 Unrestricted 10,965,599 42,149,510 53,115,109 Total Net Position $ 67,110,820 $ 215,583,320 $ 282,694,139 183 The notes to financial statements are an integral part of this statement. 47

2023 Annual Comprehensive Financial Report for the City of Dover, Delaware Financial Section – Part C – Basic Financial Statements Item 3. City of Dover, Delaware Statement of Activities For the Year Ended June 30, 2023 Net (Expense) Revenue and Program Revenues Changes in Net Position Capital Grants Indirect Expenses Charges for Operating Grants and Governmental Business Type Expenses Allocation Services and Contributions Contributions Activities Activities Total Functions/Programs Governmental Activities General Government $ 5,421,309 $ (1,373,571) $ 3,032,285 $ 12,295 $ - $ (1,003,158) $ - $ (1,003,158) Public Safety 25,846,544 - 5,040,699 1,861,028 - (18,944,817) - (18,944,817) Public Works 9,270,979 (924,491) 4,837,779 806,665 165,442 (2,536,603) - (2,536,603) Library and Recreation 4,190,920 - 781,916 375,984 98,500 (2,934,520) - (2,934,520) Community and Economic Development 685,258 - - 3,985,170 - 3,299,912 - 3,299,912 Central Services 1,819,983 (940,725) - - - (879,258) - (879,258) Financial Administration 3,892,244 (2,884,689) - - - (1,007,555) - (1,007,555) Interest Charges 135,450 - - - - (135,450) - (135,450) Total Governmental Activities 51,262,687 (6,123,476) 13,692,679 7,041,142 263,942 (24,141,448) - (24,141,448) Business Type Activities Water 4,608,357 1,106,569 8,479,187 - - - 2,764,261 2,764,261 Wastewater 6,760,655 839,485 11,077,784 - - - 3,477,644 - Electric 63,397,794 4,177,422 78,414,197 - - - 10,838,981 10,838,981 Total Business Type Activities 74,766,806 6,123,476 97,971,168 - - Total Primary Government $ 126,029,493 $ - $ 111,663,847 $ 7,041,142 $ 263,942 (24,141,448) 17,080,886 (7,060,562) General Revenues Taxes Property Taxes 16,087,623 - 16,087,623 Transfer Taxes 2,795,475 - 2,795,475 Gain on Investments 614,026 2,666,725 3,280,751 Total General Revenues 19,497,123 2,666,725 22,163,848 Transfers 8,047,278 (8,047,278) 0 Total General Revenues and Transfers 27,544,401 (5,380,553) 22,163,848 Changes in Net Position 3,402,953 11,700,333 15,103,285 Net Position Beginning 63,707,866 203,882,060 267,589,926 Net Position Ending $ 67,110,819 $ 215,582,393 $ 282,693,211 The notes to financial statements are an integral part of this statement. 48 184

2023 Annual Comprehensive Financial Report for the City of Dover, Delaware Financial Section – Part C – Basic Financial Statements Item 3. City of Dover, Delaware Governmental Funds Balance Sheet June 30, 2023 Total Total General Nonmajor Governmental Fund Funds Funds Assets: Cash and Cash Equivalents $ 13,013,196 $ - $ 13,013,196 Restricted Cash and Cash Equivalents - 6,926,320 6,926,320 Investments 8,438,232 - 8,438,232 Restricted Investments 19,322 - 19,322 Receivables, Net Accounts 2,899,627 450,077 3,349,704 Taxes 36,928 - 36,928 Due from Other Funds 550,333 - 550,333 Temporary Advances 107,800 - 107,800 Due from Other Governments - 137,303 137,303 Prepaid Items 855,088 5,481 860,569 Inventory 173,947 - 173,947 Total Assets $ 26,094,472 $ 7,519,181 $ 33,613,653 Liabilities: Accounts Payable $ 1,430,658 $ 751,323 $ 2,181,981 Unearned Revenue 148,200 1,499,728 1,647,928 Due to Other Funds 265 346,080 346,345 Temporary Advances - 2,035,522 2,035,522 Other 70,225 - 70,225 Total Liabilities 1,649,349 4,632,653 6,282,002 Deferred Inflows of Resources: Unavailable Revenue 76,446 - 76,446 Leases Revenue 2,038,940 - 2,038,940 Total Deferred Inflows of Resources 2,115,386 - 2,115,386 Fund Balances: Non-Spendable 1,050,629 5,481 1,056,110 Restricted 76,707 2,881,046 2,957,753 Committed 2,198,569 - 2,198,569 Assigned 8,316,979 - 8,316,979 Unassigned 10,686,853 - 10,686,853 Total Fund Balances 22,329,737 2,886,527 25,216,264 Total Liabilities, Deferred Inflows and Fund Balances $ 26,094,472 $ 7,519,181 $ 33,613,653 The notes to financial statements are an integral part of this statement. 185 49

2023 Annual Comprehensive Financial Report for the City of Dover, Delaware Financial Section – Part C – Basic Financial Statements Item 3. City of Dover, Delaware Reconciliation of the Balance Sheet of Governmental Funds To the Statement of Net Position June 30, 2023 Amounts reported for governmental activities in the statement of net position (page 47) are different because: Total fund balances for governmental funds (Page 49) $ 25,216,264 Capital assets used in governmental activities are not financial resources and, therefore, are not reported in the funds. 58,796,407 Other assets are not available to pay for current period expenditures and, therefore, are reported as unavailable revenue in the funds. Deferred inflows of resources 76,446 The Net Pension Liability & OPEB Liability is not due and payable in the current period; therefore, the liability and related deferred inflows/outflows are not reported in governmental funds: Deferred Outflows - Pension $ 8,444,969 Deferred Inflows - Pension (2,355,301) Deferred Outflows - OPEB 6,327,325 Deferred Inflows - OPEB (6,284,467) 6,132,526 An internal service fund (page 53) is used by the City to charge the cost of the workers' compensation fund. The assets and liabilities of the internal service fund are included in governmental activities in the statement of net position. 4,481,982 Accrual basis of bond interest paid 14,614 Long-term liabilities applicable to the City's governmental activities are not due and payable in the current period and, accordingly, are not reported as fund liabilities. Interest on long-term debt is not accrued in governmental funds, but rather is recognized as an expenditure when due. All liabilities both current and long-term are reported in the statement of net position. Compensated absences represent amounts accrued for sick leave for those employees who are vested and accrued vacation for all employees. The Net Pension Liability and OPEB Liability are not a use of current financial resources, and therefore, are not reported in the governmental funds. Current- General Obligation Bonds (506,218) Compensated Absences (1,492,424) (1,998,642) Long-Term- General Obligation Bonds (5,108,203) Compensated Absences (1,453,214) Leases (9,870) Net Pension Liability (10,099,896) Net OPEB Liability (8,937,593) (25,608,776) (27,607,418) Total net position of governmental activities (Page 47) $ 67,110,821 186 The notes to financial statements are an integral part of this statement. 50

2023 Annual Comprehensive Financial Report for the City of Dover, Delaware Financial Section – Part C – Basic Financial Statements Item 3. City of Dover, Delaware Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds For the Year Ended June 30, 2023 Total Total General Nonmajor Governmental Fund Funds Funds Revenues Fines $ 651,468 $ 54,507 $ 705,975 Library Revenue - General 147,504 - 147,504 Library Revenue County Reimbursement 431,806 - 431,806 Licenses and Permits 3,906,092 - 3,906,092 Sanitation Fees and Rebates 3,652,779 - 3,652,779 Recreation - 54,430 54,430 Miscellaneous Services 2,618,168 - 2,618,168 Property Taxes 16,105,462 - 16,105,462 Transfer Taxes - 2,795,475 2,795,475 Grants 1,154,737 6,150,347 7,305,084 Court of Chancery Fees 2,219,660 - 2,219,660 Investment Income 370,436 173,711 544,147 Total Revenues 31,258,110 9,228,470 40,486,580 Expenditures Current: General Government 1,705,827 1,705,827 Library Services 1,951,602 374,756 2,326,358 Public Safety and Law Enforcement 24,725,239 3,845,502 28,570,741 Public Works 4,838,229 216,724 5,054,953 Recreational Services 1,593,656 - 1,593,656 Streets and Sanitation Services 3,714,386 - 3,714,386 Engineering Services 231,173 - 231,173 Financial Administration 956,125 - 956,125 Garage and Stores 895,309 - 895,309 Insurance 403,680 - 403,680 Retiree Health Care 2,328,500 - 2,328,500 Employee Pension Appropriation 1,000,000 - 1,000,000 Community and Economic Development 150,000 535,258 685,258 Street Lights 832,139 - 832,139 Debt Service: Principal Retirement 496,788 - 496,788 Interest and Fiscal Charges 132,653 - 132,653 Total Expenditures 45,955,305 4,972,240 50,927,545 Excess (deficiency) of Revenues over Expenditures (14,697,194) 4,256,230 (10,440,964) Other Financing Sources (Uses) Transfers In 14,049,745 401,858 14,451,603 Transfers Out (25,000) (6,379,325) (6,404,325) Total other Financing Sources (Uses) 14,024,745 (5,977,467) 8,047,278 Net Change in Fund Balances (672,450) (1,721,237) (2,393,687) Fund Balances at Beginning of Year 23,002,187 4,607,764 27,609,951 Fund Balances at End of Year $ 22,329,737 $ 2,886,527 $ 25,216,264 The notes to financial statements are an integral part of this statement. 187 51

2023 Annual Comprehensive Financial Report for the City of Dover, Delaware Financial Section – Part C – Basic Financial Statements Item 3. City of Dover, Delaware Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities For the Year Ended June 30, 2023 Amounts reported for governmental activities in the statement of activities (page 48) are different because: Net change in fund balances--total governmental funds (Page 51) $ (2,393,687) Governmental fund reports capital outlays as expenditures. However, in the statement of activities the cost of these assets is allocated over their estimated useful lives and reported as depreciation expense. This is the amount by which capital outlays exceeded depreciation in the current period. Capitalization of net capital asset expenditures including CIP $ 5,037,510 Loss on assets disposed of during the year (94,044) Current year depreciation (4,469,584) Leases 772 474,654 Governmental funds report the repayment of principal of general long-term debt as an expenditure but the repayment reduces the liability in the statement of net position. 496,788 Revenues that are not available to pay for current period expenditures are not reported as revenues in the funds. (131,891) Governmental funds do not report GAAP related pension entries that record the Net Pension Liability. The following is the current year change in Net Pension Liability for the Governmental funds: (9,831,807) Changes in Deferred Inflows and Deferred Outflows related to pension entries reported in the Statement of Activities. 10,448,460 Decreases in operating expenses due to the decrease in OPEB expense for the amortization of deferred outflows and inflows of resources related to the net OPEB liability. 3,648,222 Under the modified accrual basis of accounting used in the governmental funds, expenditures are not recognized for the transactions that are not normally paid with expendable available financial resources. In the statement of activities, however, which is presented on the accrual basis, expenses and liabilities are reported regardless of when financial resources are available. In addition, assets are not recognized in governmental funds unless they represent current financial resources but are recognized in the statement of activities as they accrue. The following differences, therefore, occur between the statement of activities and the governmental funds. Decrease in compensated absences $ (317,305) Bond interest accrual 85 Increase in Net OPEB Liability 136,941 (180,279) An internal service fund is used by the City to charge the costs of workers' compensation insurance to individual funds. The change in net position of the internal service fund is transferred to the governmental funds and amounts attributable to internal charges are then allocated to functional expenditures. Net revenue is allocated back to respective functions and business type activities, as appropriate. 872,493 Change in net position of governmental activities (Page 48) $ 3,402,954 The notes to financial statements are an integral part of this statement. 188 52

2023 Annual Comprehensive Financial Report for the City of Dover, Delaware Financial Section – Part C – Basic Financial Statements Item 3. City of Dover, Delaware Statement of Net Position Proprietary Funds June 30, 2023 Governmental Business-type Activities Activities Electric Total Water Wastewater Revenue Enterprise Internal Fund Fund Fund Funds Service Fund Assets Current Assets: Cash and Cash Equivalents $ 3,607,114 $ 5,177,321 $ 17,736,386 $ 26,520,821 $ 3,137,532 Investments 5,485,869 2,729,388 28,559,975 36,775,232 1,526,827 Receivables, Net 3,571,147 466,436 3,491,910 7,529,493 5,000 Due from Other Funds 1,926,795 42,036 - 1,968,831 - Inventory 81,377 - 3,843,552 3,924,929 - Prepaid Items 560 350 479,973 480,883 - Total Current Assets 14,672,862 8,415,531 54,111,796 77,200,189 4,669,359 Non-Current Assets: Restricted Assets Cash 769,963 321,405 15,143,720 16,235,088 - Investments 2,021,063 5,640,258 47,337,214 54,998,535 - Capital Assets, Not Being Depreciated 1,363,070 68,982 6,433,804 7,865,856 - Capital Assets, Net of Depreciation 32,492,828 30,937,256 56,426,129 119,856,213 - Land 130,438 32,802 1,458,066 1,621,306 - - Total Non-Current Assets 36,646,924 36,967,901 125,340,867 198,955,692 - Total Assets 51,319,786 45,383,432 179,452,663 276,155,881 4,669,359 Deferred Outflows of Resources: Pension Related Deferred Outflows 795,471 249,299 1,430,554 2,475,324 - OPEB Related Deferred Outflows 4,366 14,969 1,218,078 1,237,413 - 799,837 264,268 2,648,632 3,712,737 - Liabilities Current Liabilities: Accounts Payable and Accrued Expenses 145,473 584,419 4,080,595 4,810,487 187,377 Due to Other Funds - Charges - - 245,095 245,095 - Unearned Revenue - - 1,133,323 1,133,323 - Accrued Interest Payable 50,362 25,976 244,850 321,188 - Customer Deposits - - 2,704,330 2,704,330 - Revenue Bonds Payable 606,908 534,456 992,482 2,133,846 - Liability for Compensated Absences 105,263 36,084 328,557 469,904 - Total Current Liabilities 908,006 1,180,935 9,729,232 11,818,173 187,377 Non-Current Liabilities: Net OPEB Liability 6,166 21,145 1,720,581 1,747,892 - Net Pension Liability 2,419,352 1,386,899 6,770,475 10,576,726 - Asset Retirement Obligation - - 11,618,846 11,618,846 - Revenue Bonds Payable 6,001,083 4,958,682 12,412,341 23,372,106 - Liability for Compensated Absences 231,940 28,382 308,133 568,456 - Total Non-Current Liabilities 8,658,541 6,395,108 32,830,376 47,884,025 - Total Liabilities 9,566,547 7,576,043 42,559,608 59,702,198 187,377 Deferred Inflows of Resources: Pension Related Deferred Inflows 1 - 1 2 - OPEB Related Deferred Inflows 4,338 14,868 1,209,826 1,229,032 - Lease Related Deferred Inflows 2,747,118 - 606,948 3,354,066 Total Deferred Inflows of Resources 2,751,457 14,868 1,816,775 4,583,100 - Net Position Net Investment in Capital Assets 27,247,907 25,497,170 49,455,110 102,200,187 - Restricted for Capital Construction 2,791,026 5,961,663 62,480,934 71,233,623 - Unrestricted 9,762,686 6,597,956 25,788,868 42,149,510 4,481,982 Total Net Position $ 39,801,619 $ 38,056,789 $ 137,724,912 $ 215,583,320 $ 4,481,982 The notes to financial statements are an integral part of this statement. 189 53

2023 Annual Comprehensive Financial Report for the City of Dover, Delaware Financial Section – Part C – Basic Financial Statements Item 3. City of Dover, Delaware Statement of Revenues, Expenses and Changes in Fund Net Position - Proprietary Funds For the Year Ended June 30, 2023 Governmental Business-type Activities Activities Electric Total Water Wastewater Revenue Enterprise Internal Fund Fund Fund Funds Service Fund Operating Revenues Charges for Services $ 6,711,369 $ 9,755,425 $ 76,917,251 $ 93,384,045 $ - Miscellaneous Services/Income 1,756,592 1,353,050 1,496,946 4,606,588 1,143,020 Total Operating Revenues 8,467,961 11,108,475 78,414,197 97,990,633 1,143,020 Operating Expenses Water 622,653 - - 622,653 - Wastewater - 1,004,559 - 1,004,559 - Water Treatment Plant 1,890,981 - - 1,890,981 - Water/Wastewater Engineering 193,770 233,762 - 427,532 - Kent County Wastewater Treatment - 3,759,929 - 3,759,929 - General Administrative 1,254,228 842,781 6,324,371 8,421,380 133,026 Power Supply - - 62,436,996 62,436,996 - Transmission/Distribution - - 4,345,684 4,345,684 - Engineering - - 1,740,886 1,740,886 - Metering - - 436,312 436,312 - Systems Operations - - 779,414 779,414 - Utility Tax - - 1,516,661 1,516,661 - Depreciation 1,368,534 1,548,429 4,059,579 6,976,542 - Contractual Services - - - - 29,167 Taxes - - - - 22,523 Retirees Health Care 207,400 100,500 911,000 1,218,900 - Self Insurance-Workers' Compensation - - - - 174,267 Total Operating Expenses 5,537,566 7,489,960 82,550,903 95,578,429 358,983 Operating Income/Loss 2,930,395 3,618,515 (4,136,706) 2,412,204 784,037 Non-Operating Revenues (Expenses) Interest Earned: Operating Funds 437,037 214,048 1,407,428 2,058,513 - Reserve Funds 51,172 103,858 952,133 1,107,163 88,454 Net Decrease in Fair Value of Investments (21,231) (48,012) (429,709) (498,952) 2 Interest and Fiscal Charges (177,360) (110,180) (408,721) (696,261) - Collection (Distribution) - - 16,465,539 16,465,539 - Gain (Loss) on Sale of Assets 12,153 (30,691) (1,081,131) (1,099,669) - Total Non-Operating Revenue (expenses) 301,771 129,023 16,905,539 17,336,333 88,456 Income before Contributions and Transfers 3,232,166 3,747,538 12,768,833 19,748,537 872,493 Transfers In 1,927,722 - 75,000 2,002,722 - Transfers Out (1,025,000) (1,025,000) (8,000,000) (10,050,000) - Total transfers 902,722 (1,025,000) (7,925,000) (8,047,278) - Change in Net Position 4,134,888 2,722,538 4,843,833.35 11,701,259 872,493 Total Net Position--Beginning 35,666,731 35,334,251 132,881,078 203,882,060 3,609,489 Total Net Position--Ending $ 39,801,619 $ 38,056,789 $ 137,724,912 $ 215,583,320 $ 4,481,982 The notes to financial statements are an integral part of this statement. 190 54

2023 Annual Comprehensive Financial Report for the City of Dover, Delaware Financial Section – Part C – Basic Financial Statements Item 3. City of Dover, Delaware Statement of Cash Flows - Proprietary Funds For the Year Ended June 30, 2023 Governmental Business-type Activities Activities Electric Total Water Wastewater Revenue Enterprise Internal Fund Fund Fund Funds Service Fund Cash Flows from Operating Activities Receipts from Customers $ 6,512,571 $ 11,189,774 $ 80,163,141 $ 97,865,486 $ - Payments to Suppliers (including Purchased Power) (1,542,940) (5,033,740) (67,332,909) (73,909,589) (223,950) Payments to Employees (1,594,440) (1,055,641) (5,747,174) (8,397,255) - Payments of Personnel Related Costs (1,211,149) (549,703) (2,842,414) (4,603,266) 1,143,021 Internal Activity-Payments from (to) Other Funds (309,008) (166,171) (601,789) (1,076,968) - Other Receipts (Payments) including Claims Paid (228,676) (22,432) (2,116,361) (2,367,469) (133,487) Net Cash Provided by (used for) Operating Activities 1,626,358 4,362,086 1,522,495 7,510,939 785,584 Cash Flows from Noncapital Financing Activities Transfers Out (1,025,000) (1,025,000) (8,000,000) (10,050,000) - Transfers In 1,927,722 - 75,000 2,002,722 - Distribution to Customers - PCA Credit - - 16,465,539 16,465,539 - Net Cash Used for Noncapital Financing Activities 902,722 (1,025,000) 8,540,539 8,418,261 - Cash Flows from Capital and Related Financing Activities Acquisition and Construction of Capital Assets (1,381,761) (213,702) (4,391,519) (5,986,982) - Principal Paid on Revenue Bond Maturities (589,306) (505,416) (865,000) (1,959,722) - Interest Paid on Capital Debt (177,360) (110,180) (408,721) (696,261) - Net Cash Used for Capital and Related Financing Activities (2,148,427) (829,298) (5,665,240) (8,642,965) - Cash Flows from Investing Activities Interest on Investments 437,037 214,048 1,407,428 2,058,513 - Redemption of Investment Securities 828,993 356,809 - 1,185,802 71,438 Purchase of Investment Securities (531,755) (309,842) (1,270,429) (2,112,026) - Interest on Restricted Cash 51,172 103,858 952,133 1,107,163 - Net Cash Provided by (used for) Investing Activities 785,447 364,873 1,089,132 2,239,452 71,438 Net Increase/Decrease in Cash and Cash Equivalents 1,166,100 2,872,661 5,486,926 9,525,687 857,022 Cash and cash equivalents July 1 (incl. $336,971 for Water Fund, $136,927 for Wastewater Fund and $15,078,230 for Electric fund reported in restricted accounts) 3,210,977 2,626,064 27,393,181 33,230,222 2,280,510 Cash and cash equivalents June 30 (incl. $769,963 for Water Fund, $321,405 for Wastewater Fund and $15,143,720 for Electric fund reported in restricted accounts) $ 4,377,077 $ 5,498,725 $ 32,880,107 $ 42,755,909 $ 3,137,532 (Continued) 191 55

2023 Annual Comprehensive Financial Report for the City of Dover, Delaware Financial Section – Part C – Basic Financial Statements Item 3. (Continued) Governmental Business-type Activities Activities Electric Total Water Wastewater Revenue Enterprise Internal Fund Fund Fund Funds Service Fund Reconciliation of Operating Income to Net Cash Provided by (Used for) Operating Activities: Operating Income $ 2,931,322 $ 3,618,515 $ (4,136,706) $ 2,413,131 $ 784,037 Adjustments to Reconcile Operating Income to Net Cash provided by (Used for) Operating Activities: Depreciation Expense 1,368,533 1,548,429 4,059,579 6,976,541 - Effect of Changes in Operating Assets and Liabilities: Receivables 198,551 81,409 1,100,094 1,380,054 - Due from other funds (1,767,112) (110) - (1,767,222) - Inventory (46,459) 638 (657,357) (703,178) - Prepaid items (560) (350) 42,037 41,127 - Deferred outflow of resources Pension (155,214) (52,804) (315,014) (523,032) - Deferred outflow of resources OPEB 326,776 175,439 (453,700) 48,515 - Accounts payable and accrued expenses (95,375) (401,594) 212,882 (284,087) 1,547 Unearned revenue - - 676,461 676,461 - Due to other funds (46,868) (208,535) 140,320 (115,083) - Customer Deposits - - 87,621 87,621 - Liability for Compensated Absences 126,691 (38,660) 168,702 256,733 - Asset Retirement Obligation - - (387,756) - Net OPEB Liability (255,917) (139,773) 859,092 463,402 - Net pension liability 128,940 38,196 212,804 379,940 - Deferred inflow of resources Leases (387,756) - (115,232) (502,988) - Deferred inflow of resources Pension 1 - 1 2 - Deferred inflow of resources OPEB (699,195) (258,714) (359,089) (1,316,998) - Net Cash Provided by Operating Activities $ 1,626,358 $ 4,362,086 $ 1,522,495 $ 7,510,939 $ 785,584 Non-Cash Investing, Capital and Financing Activities: Change in Fair Value of Investments $ (21,231) $ (48,012) $ (429,709) $ (498,952) $ (22,399) The notes to financial statements are an integral part of this statement. 192 56

2023 Annual Comprehensive Financial Report for the City of Dover, Delaware Financial Section – Part C – Basic Financial Statements Item 3. City of Dover, Delaware Statement of Net Position Fiduciary Funds June 30, 2023 Pension and Other Post-Employment Custodial Benefit Trust Funds Funds Assets Cash and Cash Equivalents $ 13,339,548 $ 71,754 Investments at Fair Value - Mutual Funds 109,016,746 - Prepaid Expenses - 25,000 Total Assets 122,356,294 96,754 Liabilities Vouchers Payable & Deposit Payable 469,224 - Total Liabilities 469,224 - Net Position Net Position Restricted for Pensions 68,009,925 - Net Position Restricted for Health Benefits 53,877,145 - Net Position Restricted for Other Organizations - 96,754 Total Net Position $ 121,887,070 $ 96,754 The notes to financial statements are an integral part of this statement. 193 57

2023 Annual Comprehensive Financial Report for the City of Dover, Delaware Financial Section – Part C – Basic Financial Statements Item 3. City of Dover, Delaware Statement of Changes in Net Position Fiduciary Funds For the Year Ended June 30, 2023 Pension and Other Postemployment Custodial Benefit Trust Funds Funds Additions: Net Investment Income $ 9,626,790 $ - City's Contribution-Payroll Based 4,584,176 - City's Contribution-Lump Sum 4,547,400 - Employee Contribution 209,416 - Gifts/Donations - 120,475 State Grants 765,608 - Other 5,217 177 Total Additions 19,738,607 120,652 Deductions: Bank Fees - 413 Benefit Payments 9,052,557 - Contractual Services - 74,940 General Administration 22,361 2,803 Transfer to Governmental Capital Project Fund - - Total Deductions 9,074,918 78,156 Change in Net Position 10,663,689 42,496 Net Position - Beginning 111,223,381 54,258 Net Position - Ending $ 121,887,070 $ 96,754 The notes to financial statements are an integral part of this statement. 194 58

2023 Annual Comprehensive Financial Report for the City of Dover, Delaware Financial Section – Part C Item 3. INDEX Notes to the Basic Financial Statements PAGE 1. FINANCIAL REPORTING ENTITY ...................................................................................................................61 A. The City of Dover, Delaware .................................................................................... 61 B. Reporting Entity ....................................................................................................... 61 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES ..........................................................................61 A. Basis of Presentation ............................................................................................... 62 B. Basis of Accounting and Measurement Focus ......................................................... 64 C. New Pronouncements ............................................................................................. 65 D. Capital Assets and Long-Term Liabilities.................................................................. 65 E. Budget Procedures................................................................................................... 66 F. Major Transfers ........................................................................................................ 67 G. Inventory and Prepaid Items ................................................................................... 68 H. Cash and Investments .............................................................................................. 68 I. Accounts Receivable ................................................................................................ 68 J. Restricted Assets ...................................................................................................... 68 K. Bond Accounts/Issuance Costs ................................................................................ 69 L. Deferred Outflows/Inflows of Resources ................................................................ 69 M. Fund Balances and Net Position .............................................................................. 69 N. Estimates .................................................................................................................. 70 O. Net Position Flow Assumption ................................................................................. 70 3. DEPOSITS AND INVESTMENTS ....................................................................................................................70 A. Cash in Bank and Cash Equivalents ......................................................................... 70 B. Investments.............................................................................................................. 71 4. CAPITAL ASSETS ..................................................................................................................................................76 5. LEASES ...................................................................................................................................................................81 6. SUBSCRIPTION-BASED INFORMATION TECHNOLOGY ARRANGEMENTS ....................................82 7. LONG-TERM OBLIGATIONS ............................................................................................................................83 A. Summary of Bonded Indebtedness by Issue............................................................ 83 B. Status as of June 30, 2021 – General Obligation Bonds ......................................... 84 C. Change in Long-Term Debt ...................................................................................... 84 D. Debt Service Requirements ..................................................................................... 85 E. Certain Asset Retirement Obligation ....................................................................... 88 59 195

2023 Annual Comprehensive Financial Report for the City of Dover, Delaware Financial Section – Part C Item 3. INDEX Notes to the Basic Financial Statements PAGE 8. RESTRICTED NET POSITION .........................................................................................................................88 9. FUND BALANCES & NET POSITION ............................................................................................................89 10. PROPERTY TAXES .............................................................................................................................................90 11. INTERFUND RECEIVABLES, PAYABLES AND TRANSFERS .....................................................................91 A. Due To/From Other Funds – Charges and Allocations ............................................ 91 B. Temporary Advances ............................................................................................... 91 C. Interfund Transfers .................................................................................................. 91 12. MATERIAL COMMITMENTS ..........................................................................................................................92 13. FORWARD CONTRACTS ..................................................................................................................................92 14. INSURANCE..........................................................................................................................................................95 A. Health Insurance – State of Delaware ..................................................................... 95 B. Workers’ Compensation Fund – Self-Insurance ..................................................... 95 C. Other than Health or Workers’ Compensation Insurance ....................................... 95 15. COMPENSATED ABSENCES ............................................................................................................................95 16. OTHER POST-EMPLOYMENT BENEFITS ...................................................................................................96 17. DEFERRED COMPENSATION PLAN .............................................................................................................105 18. RETIREMENT PLANS ........................................................................................................................................106 A. Defined Contribution Plan ................................................................................... 106 B. Defined Benefit Plans ......................................................................................... 107 60 196

2023 Annual Comprehensive Financial Report for the City of Dover, Delaware Financial Section – Part C – Notes to the Basic Financial Statements Item 3. NOTES TO FINANCIAL STATEMENTS YEAR ENDED JUNE 30, 2023 FINANCIAL REPORTING ENTITY A. The City of Dover, Delaware The City of Dover, Delaware (the City) was incorporated in 1829 and is a municipal corporation governed by an elected mayor and a nine-member council. The accompanying financial statements present the financial position and operating results for the fiscal year ended June 30, 2023. B. Reporting Entity In evaluating how to define the reporting entity for financial reporting purposes, management has considered all potential component units. The decision to include a potential component unit was made by applying the criteria set forth in Generally Accepted Accounting Principles in the United States of America (GAAP). GAAP defines the reporting entity as the primary government, and those component units for which the primary government is financially accountable. Financial accountability is defined as appointment of a voting majority of the component unit's board and either a) the ability to impose will by the primary government, or b) the possibility that the component unit will provide a financial benefit to or impose a financial burden on the primary government. Based upon this criterion, the following is a brief review of each potential component unit addressed in defining the government’s reporting entity. Included within the reporting entity: The City provides many services as follows - police protection, street maintenance, sanitation, storm water maintenance, recreation, library, community development, public improvements, planning, safety inspections, electric generation and distribution, water and wastewater services, legislative services, and general administration, including employee benefits. These functions are part of the City’s daily operations and therefore are not legally separate component units. Not included within the reporting entity: The City joined the State of Delaware Police Pension Plan for uniformed police officers employed by the City after September 1, 1982. The plan is completely managed by the State of Delaware and, therefore, is not included in the financial statements. The Robbins Hose Volunteer Fire Company, Downtown Dover Partnership, and the Capital School District are not included within the financial reporting entity because they do not meet the criteria for inclusion set forth by GAAP. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The accounting policies of the City conform to generally accepted accounting principles, as applicable to governments. A summary of the more significant policies follows: A. Basis of presentation 61 197

2023 Annual Comprehensive Financial Report for the City of Dover, Delaware Financial Section – Part C – Notes to the Basic Financial Statements Item 3. Government-wide Statements: The statement of net position and the statement of activities include the financial activities of the overall government, except for fiduciary activities. Individual funds are not displayed but the statements distinguish governmental activities, generally funded by taxes and other City revenue, from business-type activities (BTAs), generally funded in whole or in part with fees charged to external users. Eliminations have been made for the doubling-up effect of certain internal activities, however, interfund services provided and used are not eliminated in the process of consolidation. The government-wide statement of activities presents a comparison between direct program expenses and program revenues for each function of the City’s governmental activities and for each of the City’s identifiable business-type activities. Direct expenses are those that are specifically associated with a program, function, or activity. Program revenues include a) charges paid by the recipients or beneficiaries of goods or services offered by the programs and b) grants and contributions that are restricted for meeting the operational or capital requirements of programs. Revenues that are not classified as program revenues, including all taxes, are presented as general revenues. The City allocates the costs of certain governmental services to the costs of business-type activities (indirect expense allocation). These costs include allocated amounts of city management, centralized budgetary formulation and oversight, accounting, financial reporting, payroll, fleet and building maintenance, procurement contracting and oversight, investing and cash management, personnel services, etc. The allocations are charged to the BTAs based on the use of these services. As a matter of policy, the costs of certain governmental functions are not allocated to the business-type activities such as tax assessor, planning and zoning, public safety, library and recreation and community services. Fund Financial Statements: The accounts of the City are organized based on funds, each of which is considered a separate accounting entity. The operations of each fund are accounted for with a separate set of self-balancing accounts that comprise its assets, liabilities, deferred inflows/outflows, fund equity, revenues and expenditures or expenses, as appropriate. Government resources are allocated to and accounted for in individual funds based upon the purposes for which they are to be spent and how spending activities are controlled. The fund financial statements provide information about the City’s funds, including fiduciary funds. The emphasis of fund financial statements is on major governmental and enterprise funds, each displayed in a separate column. All remaining governmental funds are aggregated and reported as non-major funds. The City reports the following major governmental fund: General Fund The General Fund is the general operating fund of the City. It is used to account for all financial resources except those required to be accounted for in another fund. 62 198

2023 Annual Comprehensive Financial Report for the City of Dover, Delaware Financial Section – Part C – Notes to the Basic Financial Statements Item 3. The City reports the following major proprietary funds: Electric Revenue Fund This fund incorporates all transactions related to the transmission and distribution, as well as generation of electricity. The City has contracted with both The Energy Authority and North American Energy Services to manage the City’s power supply and generation assets. Water Fund This fund accounts for transactions related to water services. The City also holds lease agreements with cell phone companies for equipment placed on City water towers. Wastewater Fund This fund accounts for transactions related to wastewater services, including the payment of fees to Kent County for the treatment of sewage. The City reports the following non-major funds: Internal Service Fund The City has created one internal service fund to account for the activities related to self-insured Workers’ Compensation. Receipts are provided from contributions by the City’s general fund and it’s three enterprise funds. Expenses are related to payment of claims, premiums, and administration costs. Actuarial analyses are completed every three (3) years to ensure sufficient reserves for claims for the Workers’ Compensation Fund. The last analysis was done on June 30, 2019. Special Revenue Funds The City has eleven (11) Special Revenue Funds to account for proceeds of specific revenue sources that are restricted or committed to expenditure for specified purposes other than debt service or capital projects. Fiduciary Funds Fiduciary funds consist of trust and custodial funds and are used to report assets held by the City in a trustee or custodial capacity for other purposes. These funds are, therefore, not available to support City programs. The City is the trustee for the City’s two pension plans: the Police Pension Fund, and the Employee Pension Fund, as well as the Other Post-Employment Benefit Trust. The activities of these plans are accounted for in the Basic Financial Statements. Custodial Funds Custodial funds are used to account for assets held by the City as a custodian for individuals, private organizations, or other governments. The City has three (3) custodial funds. The City acts as the receiving and paying agent for the Fourth of July Celebration Committee, the Dover Days Celebration Committee, and Dover Strong. 63 199

2023 Annual Comprehensive Financial Report for the City of Dover, Delaware Financial Section – Part C – Notes to the Basic Financial Statements Item 3. B. Basis of Accounting and Measurement Focus Basis of accounting refers to when revenues and expenditures or expenses are recognized in the accounts and reported in the financial statements. Basis of accounting relates to the timing of the measurements made, regardless of the measurement focus applied. All governmental funds are accounted for using the modified accrual basis of accounting and the current financial resources measurement focus. Their revenues are recognized when they become measurable and available as net current assets. Revenues that are susceptible to accrual include property taxes, grants, and billable service charges. All other revenues are accounted for when they are received. Property taxes are recognized in the fiscal period during which they are levied, provided they are “available;” meaning they are collected in the current period or are expected to be collected soon enough thereafter to satisfy liabilities in the current period. The City considers all revenues reported in the governmental funds to be available if the revenues are collected within sixty days after year- end, except for trash collection, which has a thirty-day collection period. Expenditures are generally recognized under the modified accrual basis of accounting when the related fund liability is incurred. The exception to this general rule is principal and interest on general long-term debt which is recognized when due. Also, claims and judgments and compensated absences are recognized as expenditures to the extent they have matured. General capital asset acquisitions are reported as expenditures in governmental funds. Proceeds of general long-term debt and acquisitions under capital leases are reported as other financing sources. The government-wide financial statements as well as all proprietary and fiduciary funds are accounted for using the accrual basis of accounting and the economic resources measurement focus. A reconciliation of the governmental fund financial statements prepared on the modified accrual basis of accounting to the government-wide financial statements prepared on the accrual basis of accounting is also provided on pages 50 & 52. The types of transactions included in program revenues in the government-wide statement of activities include charges for services, operating grants, and capital grants. Operating income reported in the proprietary fund financial statements includes revenue and expenses related to the continuing operations of the funds. Charges to customers for sales and services constitute the principal operating revenue for proprietary funds. All revenues not meeting this definition are reported as non-operating. Principal operating expenses are the costs of providing goods and services, which include purchased power, administrative expenses, and depreciation of capital assets. All revenues and expenses not meeting this definition are reported as non-operating revenues and expenses. The City generally first uses restricted assets for expenses incurred for which both restricted and unrestricted assets are available. The City may defer the use of restricted assets based on a review of the specific transaction. C. New Pronouncements 64 200

2023 Annual Comprehensive Financial Report for the City of Dover, Delaware Financial Section – Part C – Notes to the Basic Financial Statements Item 3. The City has adopted the provisions of Governmental Accounting Standard Board (GASB) issued Statement No. 94 entitled Public-Private Partnerships and Availability Payment Arrangements and Statement No. 96 entitled Subscription-Based Information Technology Arrangements. The adoption of these GASB statements did not have a material effect on the statements. As of June 30, 2023, GASB issued three new statements which will be effective in upcoming fiscal years: Statement No. 100 entitled Accounting Changes and Error Corrections, Statement No. 101 entitled Compensated Absences, and Statement No. 102 entitled Certain Risk Disclosures. The City has not yet completed the process of evaluating the impact of these pronouncements on its financial statements. D. Capital Assets and Long-Term Liabilities Capital assets used in Governmental Fund type operations (general capital assets) are accounted for in the government-wide financial statements rather than in the funds. Public domain ("infrastructure") general capital assets consisting of certain improvements other than buildings, including roads, bridges, curbs and gutters, streets and sidewalks, drainage systems and lighting systems, are capitalized in the government-wide financial statements along with other general capital assets. The capitalization threshold for the City’s assets is $5,000. Personal computers and related hardware valued under $5,000 are manually controlled by the Information Technology Department. All capital assets are valued at historical cost and donated capital assets are shown at acquisition value based on the developers’ cost of the infrastructure. Depreciation has been provided on general capital assets and is shown in Note 4. Depreciation has been provided over the estimated useful lives using the straight-line method. Estimated useful lives are as follows: Buildings 20 – 50 years Infrastructure 20 – 50 years Vehicles 5 – 7 years Equipment, Furniture & Fixtures 5 – 15 years Long-term liabilities expected to be financed from governmental funds and the long-term estimated liabilities for compensated absences are accounted for in the government-wide financial statements, but not in the governmental funds. Depreciation of all exhaustible capital assets used by proprietary funds is charged as an expense against their operations. Accumulated depreciation is shown in Note 4 of this section. Depreciation in the proprietary funds has been provided over the estimated useful lives using the straight-line method. The estimated useful lives are presented below: Building, Mains & Plant 25 – 90 years Improvements 15 – 20 years Equipment 5 – 15 years Vehicles 5 – 7 years Capital assets are maintained substantially and reported in accordance with the Uniform System of Accounts prescribed by the Federal Energy Regulatory Commission (FERC) for the Electric Fund and the National Association of Regulatory Utility Commissioners (NARUC) for the Water and Wastewater Fund. 65 201

2023 Annual Comprehensive Financial Report for the City of Dover, Delaware Financial Section – Part C – Notes to the Basic Financial Statements Item 3. E. Budget Procedures Legally adopted budgets are prepared for the General Fund, Water Fund, Wastewater Fund, Electric Revenue Fund, the Internal Service Fund, and the following non-major special revenue funds: Police Federal Grants Fund, Police State Grants Fund, Library Grants Fund, Municipal Street Aid Fund, Community Development Block Grant Fund (Federal), State Department of Transportation Grants Fund (Community Transportation), Substance Abuse Prevention Program Fund, Electronic Red-Light Safety Program Fund, Lodging Tax Fund, ARPA Grant Fund, and the Realty Transfer Tax Fund. The General Governmental Capital Projects Fund provides for separate budgets to cover the planning and control of capital items for the governmental programs. The financial transactions of this fund are included in the financial statements of the General Fund. The Electric Improvement and Extension Fund, the Water Improvement and Extension Fund, and the Wastewater Improvement and Extension Fund are sections of each utility enterprise. These sections are required by bond resolutions. Separate budgets for these funds cover the planning and control of only the capital items of the utilities. The financial transactions of these funds are included in the financial statements of the Electric Revenue Fund, the Water Fund, and the Wastewater Fund. The City prepares the budget for the General Fund revenues on a basis consistent with the modified accrual basis. The expenditures are accounted for when the purchase orders are issued. The budget and actual schedule in the legal budget format (non-GAAP), adopted by the City for the General Fund, the City’s major governmental fund, is presented in the required supplementary information section of this report. Budgets for the Electric Revenue Fund, Water Fund, Wastewater Fund, and Internal Service Fund are prepared on an accrual basis. Budgets are prepared under the assumption that the principal redemption of long-term debt must be assumed by Enterprise Fund activity in conformity with the bond ordinance. The Combining General Fund Balance Sheet and Combining Statement of Revenues, Expenditures and Changes in Fund Balances of the General Fund as well as the budget and actual schedules of the other funds are also presented in the supplementary information section of this report because they are not required to be presented elsewhere. According to the City's procedures, the preceding year's ending net budgetary balances are considered as resources for the following year. The beginning balances become operating items of revenues in the budgets. Estimated ending budgetary balances provide the balancing amount for each budget. In accordance with the City’s financial policies, adopted by City Council, the General, Water, and Wastewater funds are required to maintain an 8% minimum ending budget balance and the Electric fund is required to maintain a 12% minimum. These percentages are expressed as a percentage of operating revenues, excluding the beginning budget balance. Unassigned fund balances as a percentage of current year operating revenues on a budgetary basis for the General Fund, Water Fund, Wastewater Fund, and Electric Fund are 21.8%, 25.84%, 22.90% and 26.0% respectively, and all are exceeding the financial policy maximum for each fund. Per the Financial policy, the overages for all funds will be addressed in the next year’s budget. The City Manager may approve transfers of savings from completed CIP items to non-completed CIP items. Any transfers that cause the item or project to exceed its original budget 10% or greater will be communicated to City Council and the Controller/Treasurer. The City Manager may approve intra- 66 202

2023 Annual Comprehensive Financial Report for the City of Dover, Delaware Financial Section – Part C – Notes to the Basic Financial Statements Item 3. fund transfers (i.e., within the General Fund) of up to five percent per annum, except for line items associated with salary and benefits. Budget amendments exceeding that authorized above or that affect budget balances shall be referred to City Council. (Source: City of Dover Policy Manual, Budget Administration – Policy for Operating Departments, 2014). The following activities exceeded their budget: 1. Fire Department is over by $18,057, due to overtime. 2. Inspections is over by $12,530 for Contractual Services. 3. Police Extra-Duty is over budget by $216,098. 4. Public Works – Engineering is over by $24,072. 5. Transfer to Cable Franchise Reserve of $9,164 was not budgeted. 6. Appropriation to Police Pension Fund - State Grant is over budget by $145,607 due to the receipt of State of Delaware funds exceeding the budgeted amount and then passed through to the Police Pension Fund as an expenditure. 7. Appropriation to cover Street Light expense was low by $22,139. In all cases, the increase was needed to meet operational requirements of the City. F. Major Transfers The Electric Revenue Fund, Water Fund, and Wastewater Fund annually transfer a budgeted portion of their revenues to the General Fund. Transfers are also made from the Realty Transfer Tax Fund, Municipal Street Aid Fund, Electronic Red-Light Safety Program (ERLSP) Fund and both Police Grant Funds (State & Federal) to the General Fund. The purpose of these transfers is to provide routine subsidies to the General Fund for operating functions, capital project expenditures and debt service requirements. The Lodging Tax receipts are only to be used for infrastructure, according to City Ordinance #2019-16. Therefore, amounts received in this fund are transferred to the General Governmental Capital Projects Fund. Several Special Revenue Funds represent a pass-through of revenues collected by the State of Delaware on behalf of the City or other State revenues provided for in Delaware Code. These receipts are subsequently transferred to the General Fund in support of public safety, City maintenance of State roads and other public services. Several transfers between the General Fund and the non-major governmental funds are netted in the government-wide financial statements. G. Inventory and Prepaid Items Both inventory and prepaid items are accounted for using the consumption method. Inventory are treated as operational expenditures at the time of use rather than at the time of purchase for both the governmental and proprietary funds. Prepaid items are reflective of insurance policies and commitments due on July 1 for the following fiscal year. The warehouse inventories, consisting mostly of parts and supplies, are maintained on a perpetual inventory basis. Inventories of all funds are valued at cost and net of reserves, utilizing a weighted 67 203

2023 Annual Comprehensive Financial Report for the City of Dover, Delaware Financial Section – Part C – Notes to the Basic Financial Statements Item 3. moving average method of valuation. The City maintains inventory reserves to charge off any damaged or obsolete items. The Electric Revenue Fund maintains fuel inventory for the generating assets on a perpetual basis and utilizes the weighted average method of valuation. H. Cash and Investments The City's cash and cash equivalents consist of cash on hand, demand deposits and short-term investments with original maturities of three months or less from the acquisition date. Investments consist of notes and bonds issued by the United States Government and its agencies, corporate debt instruments, common stock, and open-end mutual funds. I. Accounts Receivable Allowances for uncollectible accounts are maintained and uncollectible accounts are charged off against these allowances. The authority to write off accounts is vested with the City Council. Current balances of allowances are as follows: General Fund $626,740 Water Fund 28,143 Wastewater Fund 26,040 Electric Revenue Fund 1,601,824 J. Restricted Assets Certain assets are restricted because their use is limited by bond covenants, endowments, or other similar third-party restrictions. Restricted assets as of June 30, 2023, total $78,270,395 including cash and cash equivalents of $23,115,782 and $55,154,613 in investments. Of this amount, $6,900,016 is attributed to governmental activities and $71,046,787 is attributable to business-type activities. 68 204

2023 Annual Comprehensive Financial Report for the City of Dover, Delaware Financial Section – Part C – Notes to the Basic Financial Statements Item 3. K. Bond Accounts/Issuance Costs The City recognizes issuance costs in governmental funds, as well as the proprietary funds, as a current period expense in accordance with GASB 65. All unamortized bond discounts and issuance costs held by the general fund and the proprietary funds have been expensed in prior years. L. Deferred Outflows/Inflows of Resources The statement of net position, in addition to reporting assets and liabilities, reports a separate section for deferred outflows / inflows of resources. Deferred outflows / inflows of resources represent either a consumption or acquisition of net position that applies to a future period(s) and will not be recognized as an outflow / inflow (expense / revenue) of resources until that period. The City’s deferred outflows / inflows of resources are reported on the government-wide statement of net position and proprietary funds statement of net position for pension and Other Post- Employment Benefits (OPEB). For purposes of measuring the OPEB and pension liability, deferred outflows of resources and deferred inflows of resources related to OPEB and pensions, and OPEB and pension expense, information about the fiduciary net position of the OPEB and pension plans and additions to/deductions from their fiduciary net position have been determined on the same basis as they are reported by the City of Dover’s OPEB Trust and pension systems. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. The OPEB and pension systems report investments at fair value. Deferred inflows of resources related to OPEB, and pensions are explained in Notes 16 and 18, respectively. The City also reports unavailable revenue as a deferred inflow of resources only in the governmental funds balance sheet, which arises only under a modified accrual basis of accounting that qualifies for reporting in this category. The governmental funds report unavailable revenues from property taxes, demolitions, general billings, grass cutting, police extra-duty, state grants, and lease activity. M. Fund Balances and Net Position Governmental fund balances are reported based on a hierarchy of constraints on the nature or specific purpose to which the funds can be spent. The classifications of fund balance are as follows: • The non-spendable fund balance classification includes amounts that cannot be spent either because they are in a non-spendable form or because they are legally or contractually required to be maintained intact. • The restricted fund balance classification includes amounts that can be spent only for specific purposes defined by the City Charter, the City Code, State or Federal laws, or externally imposed conditions by grantors or creditors. • The committed fund balance classification includes amounts that can be used only for specific purposes determined by the formal action by the City Council through a motion or an adopted City Ordinance which is approved by a majority vote of City Council, the City’s highest level of decision-making authority. 69 205

2023 Annual Comprehensive Financial Report for the City of Dover, Delaware Financial Section – Part C – Notes to the Basic Financial Statements Item 3. • The assigned fund balance classification includes amounts authorized and established by City Council. The City’s financial policies as adopted by City Council includes the purpose and description of all classes of fund balance. Modifications require City Council approval. • The unassigned fund balance classification includes amounts that have not met the criteria of the previously mentioned fund balance classifications. The unassigned fund balance is available for expenditures as they are incurred. The general fund is the only fund that reports a positive unassigned fund balance amount. The City considers restricted, committed, or assigned amounts to have been spent when a related expenditure is incurred. Proprietary funds report net position in three categories: 1) Net investment in capital assets 2) Restricted and 3) Unrestricted Fund balances and net position are further explained in Note 9. N. Estimates The preparation of financial statements in conformity with generally accepted accounting principles in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. O. Net Position Flow Assumption Sometimes the City will fund outlays for a specific purpose from both restricted (e.g., restricted bond or grant proceeds) and unrestricted resources. To calculate the amounts reported as restricted and unrestricted net position and fund balance in the government-wide, proprietary fund, and governmental fund financial statements, a flow assumption must be made about the order in which the resources are applied. It is the City’s policy to consider restricted net position to have been depleted before unrestricted net position is applied. DEPOSITS AND INVESTMENTS A. Cash in Bank and Cash Equivalents Custodial credit risk – deposits. The City’s depository institutions collateralize the City’s deposits over and above those covered by the $250,000 FDIC Insurance limit with specific securities, which are ‘marked to market’ daily against the aggregate balances. The market value of the collateral is at a minimum of or equal to 102% of the number of applicable deposits. Collateral consists solely of full faith and credit obligations of the United States Government or fixed rate obligations of agencies or instruments of the United States Government. As of June 30, 2023, the carrying amount of unrestricted cash and cash equivalents totaled $42,671,549, and the bank cash balance totaled $42,612,059. The carrying amount of restricted cash 70 206

2023 Annual Comprehensive Financial Report for the City of Dover, Delaware Financial Section – Part C – Notes to the Basic Financial Statements Item 3. totaled $23,161,408 and the bank cash balances on restricted accounts totaled $20,731,054 and $3,523,375 of the bank balance exposed to custodial credit risk because it was uninsured and uncollateralized. Fiduciary funds cash and cash equivalents carrying value of $13,339,548 included $13,411,302 of cash deposits. The restricted deposits are held by the City for bond-related transactions, special purpose operating and capital grants. B. Investments The City Council has adopted an investment policy which is reviewed every two years and updated as needed to meet best practices. The Pension Boards have adopted their own distinct investment policies to govern the Pension Trust funds because the objectives differ from those of the City. The City’s investments are segregated from the Pension Trust investments for clarity. As of June 30, 2023, the city had the following investments: 1. Investments Held by Third Party Custodian The City categorizes its fair value measurements within the fair value hierarchy established by generally accepted accounting principles. The hierarchy is based on the valuation inputs used to measure the fair value of the asset. The City’s government’s wide investments are held in several different investment capacities from mutual funds and certificate of deposit with a significant investment in debt securities. • Level 1 – Valuations based on unadjusted quoted prices for identical assets or liabilities in active markets. • Level 2 – Valuations based on quoted prices for similar assets or liabilities in active markets or identical assets or liabilities in less active markets, such as dealer or broker markets; and • Level 3 – Valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable, such as pricing models, discounted cash flow models and similar techniques not based on market, exchange, dealer, or broker-traded transactions. The city recorded the following investments as of June 30, 2023: 71 207

2023 Annual Comprehensive Financial Report for the City of Dover, Delaware Financial Section – Part C – Notes to the Basic Financial Statements Item 3. Fair Value Measurements Using: Quoted Prices Significant Weighted in Active Other Average Markets Observable Maturity for Identical Inputs Investment Type (Years) June 30, 2023 Assets (Level 1) (Level 2) Government-Wide: Investments by fair value level Debt securities: U.S. Government Treasuries 2.10 $ 26,529,382 $ - $ 26,529,382 Federal Agency Bond / Note 1.90 20,344,347 591,902 19,752,445 Municipal Obligations 1.35 5,377,774 - 5,377,774 Domestic Fixed Income 2.60 31,072,080 - 31,072,080 International Fixed Income 1.29 11,507,304 - 11,507,304 Federal Agency mortgage backed security* 11.07 1,803,547 573,893 1,229,654 Total Investments by fair value level 2.25 $ 96,634,434 $ 1,165,795 $ 95,468,639 Other Investments, at amortized cost: Money Market Mutual Funds & Equity Stock 7,919,790 Certificates of Deposit 977,300 Total other investments 8,897,090 Total Government-Wide Investments 105,531,524 Less: Cash and Cash Equivalents Money Market Funds & Certificates of Deposit (3,773,376) Total Investments per statement of net position $ 101,758,148 Interest rate risk: As a means of limiting its exposure to fair value losses arising from rising interest rates the City’s investment policy limits U.S. Government securities and most other investments to a maximum maturity of 10 years from the date of purchase. Commercial Paper, Bankers’ Acceptances and Repurchase Agreements all have a much shorter investment period ranging from 90 days to 365 days. Short-term cash flow balances are invested up to one year. The portfolio’s weighted average maturity is 2.47 years. * For asset backed and Agency mortgage-backed securities, the maximum maturity shall be defined as the weighted average life (“WAL”). WAL is a convention that estimates the expected weighted amount of time, in years, for the principal amount of an issue to be fully paid. For Agency mortgage-backed securities, WAL shall be limited to 10 years, measured at the settlement date, provided by Bloomberg Financial Markets. As of June 30, 2023, Federal Agency mortgage- backed security WAL is 9.00. Credit risk: The City’s investment policy applies the prudent-person rule. Investments are made as a prudent person would be expected to act, with discretion and intelligence, to seek reasonable income, preserve capital and, in general, avoid speculative investments. As of June 30, 2023, the City’s fixed income and short-term investments carried the following S&P Global Credit Ratings as compared to the policy’s minimum ratings: 72 208

2023 Annual Comprehensive Financial Report for the City of Dover, Delaware Financial Section – Part C – Notes to the Basic Financial Statements Item 3. Policy Minimum Percent Authorized Investments Rating Category Portfolio Ratings Allocation U.S. Government Treasuries N/A N/A 25.14% U.S. Government Agency Bonds/Notes N/A N/A 20.99% Certificates of Deposit and Short-Term A-1 Short-Term A-1 to A-1+ 0.93% Time Deposits Long-Term AA N/A 0.00% Corporate Debt Issued by a US Corporation Commercial Paper A-1 N/A 0.00% Corporate Notes/Bonds A BBB+ to AAA 29.44% International Fixed Income A AAA 10.90% Repurchase Agreements ST A-1; LT AA N/A 0.00% Registered Investment Companies AAAm AAAm 7.50% (Money Market Funds) Municipal Obligations A A to AAA 5.10% Concentration of credit risk: As of June 30, 2023, United States Treasury Notes represented 27.10% of the portfolio, Federal Home Loan National Mortgage Association represented 11.97% of the portfolio and Federal National Mortgage Association represented 7.28% of the portfolio. No other issuer exceeded 5% of the portfolio. 2. Investments Held by Trustee for Other Post-Employment Benefits & Pensions The Pension Trusts and OPEB Trust invest exclusively in open-end mutual funds. The fair value is measured using the net asset value (NAV) as quoted in active markets in a manner consistent with the measurement principles for investment companies calculated as of June 30, 2023. 73 209

2023 Annual Comprehensive Financial Report for the City of Dover, Delaware Financial Section – Part C – Notes to the Basic Financial Statements Item 3. Investment Type June 30, 2023 Other Postemployment Benefits (OPEB) & Employee's Police OPEB Pension Funds (Trustee held): Plan Plan Trust Total Investments measured at the net asset value (NAV) Money market funds $ 7,961,479 $ 809,930 $ 1,540,189 $ 10,311,598 Fixed Income: Short-term bond funds 2,296,028 790,214 3,029,366 6,115,608 Intermediate-term bond funds 1,829,322 655,819 2,292,177 4,777,318 Long-term bond funds 2,337,875 670,492 2,056,314 5,064,681 Inflation-protected bond funds 2,747,432 919,298 2,013,982 5,680,712 High yield bond funds 2,347,179 807,832 2,580,553 5,735,564 Nontraditional bond funds 1,869,942 536,304 2,313,066 4,719,312 Total Fixed Income 13,427,778 4,379,959 14,285,458 32,093,195 Equities: Large-cap value funds 3,377,986 968,725 3,779,306 8,126,017 Large-cap growth funds 4,654,032 1,038,167 6,254,626 11,946,825 Mid-cap value funds 1,966,676 493,489 4,867,347 7,327,512 Mid-cap blend funds 1,986,731 498,520 - 2,485,251 Small-cap value funds 3,456,945 706,927 2,245,646 6,409,518 Small-cap growth - - 2,120,007 2,120,007 International growth funds 3,765,112 944,773 4,657,954 9,367,839 World stock funds 3,420,585 980,996 4,836,573 9,238,154 Infrastructure funds 2,247,403 773,410 - 3,020,813 Diversified emerging market funds 4,715,269 1,487,552 5,704,044 11,906,865 Real estate funds 1,918,192 412,534 2,644,024 4,974,750 Total Equities 31,508,931 8,305,093 37,109,527 76,923,551 Total investments measured at the NAV $ 44,936,709 $ 12,685,052 $ 51,394,985 $ 109,016,746 The City recorded the following OPEB and Pension investments as of June 30, 2023: Quoted Prices in Active Markets for Identical Investment Type June 30, 2023 Assets (Level 1) Other Postemployment Benefits (OPEB) & Pension Funds Investments by fair value level Mutual Funds $ 109,016,746 $ 109,016,746 74 210

2023 Annual Comprehensive Financial Report for the City of Dover, Delaware Financial Section – Part C – Notes to the Basic Financial Statements Item 3. Limits on investments are as follows: Category Allocation Target Percentage Employee's Police OPEB Plan Plan Trust Cash & Short Term Bonds 11.00% 13.00% 9.00% Non-traditional Bonds 4.00% 4.00% 4.50% Inflation Protected Bonds 6.00% 5.00% 4.00% Intermediate Term Bonds 4.00% 3.00% 4.50% Long Term Bonds 5.00% 5.00% 4.00% High Yield Bond 5.00% 5.00% 5.00% Large Cap Value 7.00% 7.00% 7.00% Large Cap Growth 9.00% 9.00% 11.00% Mid Cap 8.00% 8.00% 9.00% Small Cap 7.00% 7.00% 8.00% Real Estate Investment 4.00% 4.00% 5.00% Infrastructure 5.00% 5.00% 0.00% Foreign Equity 15.00% 15.00% 18.00% Emerging Markets 10.00% 10.00% 11.00% 100.00% 100.00% 100.00% Custodial Credit Risk is the risk that, in the event of the failure of the counterparty, the City will not be able to recover the value of its investments or collateral securities that are in the possession of an outside party. To avoid custodial credit risk, the City requires all investments held with a third-party custodian to be registered in the City’s name. Interest Rate Risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. Generally, the longer the maturity of an investment, the greater the sensitivity of its fair value to changes in market interest rates. The Pension and OPEB Plans’ investment policies formally address interest rate risk. As of June 30, 2023, the Pension and OPEB plans had $32,093,195 in fixed income investments. The weighted average maturity for all its fixed income funds was 6.55 years. Credit Risk: The OPEB Plan’s investments are exposed to both market risk, the risk arising from changes in fair value, and credit risk, the risk of failure by another party to perform according to the terms of a contract. The Pension and OPEB Plan’s investment balances on June 30, 2023, consisted of open-ended mutual funds. Concentration of Credit Risk: Concentration of credit risk is the risk of loss attributable to the magnitude of an investment in a single issuer. The Pension and OPEB Plan’s investment policies do not formally address concentration of credit risk. The Pension and OPEB Plans held no positions of five percent or more in securities of any single issuer on June 30, 2023. Foreign Currency Risk is the risk that changes in the exchange rate of investments will adversely affect the fair value of an investment. As of June 30, 2023, the Pension and OPEB Plans had no investments that were denominated in foreign currency. 75 211

2023 Annual Comprehensive Financial Report for the City of Dover, Delaware Financial Section – Part C – Notes to the Basic Financial Statements Item 3. CAPITAL ASSETS A summary of the capital asset activity for the year ended June 30, 2023, is presented below and on the following four pages: Beginning Ending Balance Increases Decreases Adjustments Balance Governmental activities: Capital assets, not being depreciated Land $ 4,620,356 $ - $ - $ - $ 4,620,356 Construction in progress 605,810 2,045,161 876,849 - 1,774,122 Total capital assets, not being depreciated 5,226,166 2,045,161 876,849 - 6,394,478 Capital assets, being depreciated: Buildings 29,576,906 1,086,972 - - 30,663,878 Furniture and fixtures 759,375 12,179 - - 771,554 Equipment 1 8,847,183 1,489,313 1,112,549 3,400 9,227,347 Vehicles 6,685,832 1,097,242 541,198 - 7,241,876 Lights 655,646 - - - 655,646 Improvements other than buildings 63,856,203 183,492 - - 64,039,695 Total capital assets, being depreciated 110,381,145 3,869,198 1,653,747 3,400 112,599,996 Less accumulated depreciation for: Buildings (8,077,518) (667,930) - - (8,745,448) Furniture and fixtures (732,151) (27,224) - (406) (759,781) 2 (6,163,467) (5,658,581) Equipment (529,534) 1,089,759 (55,339) Vehicles (5,309,348) (492,048) 524,303 (2,014) (5,279,107) Lights (561,281) (10,424) - - (571,705) Improvements other than buildings (36,441,021) (2,742,424) - - (39,183,445) Total accumulated depreciation (57,284,786) (4,469,584) 1,614,062 (57,759) (60,198,067) 3 Total capital assets, being depreciated, net 53,096,359 (600,386) (39,685) (54,359) 52,401,929 Governmental activities capital assets, net $ 58,322,525 $ 1,444,775 $ 916,534 $ (54,359) $ 58,796,407 1 The adjustment to Equipment is due to additional expenditures for the TickeTrak Parking Enforcement System. 2 The adjustments in equipment depreciation was due to two assets transferred into Grounds from the Electric fund, 5 assets paid for with grant funding, a donated asset to the Library, as well as the additional TickeTrak depreciation. 3 The addition of leased assets is the difference between this schedule and the financial statements. 76 212

2023 Annual Comprehensive Financial Report for the City of Dover, Delaware Financial Section – Part C – Notes to the Basic Financial Statements Item 3. (Continued) Beginning Ending Balance Increases Decreases Adjustments Balance Business-type activities: Water Fund Capital assets, not being depreciated Land $ 130,438 $ - $ - $ - $ 130,438 Construction in progress 47,815 3,112,539 - - 3,160,354 Total capital assets, not being depreciated 178,253 3,112,539 - - 3,290,792 Capital assets, being depreciated Buildings 9,685,327 - - - 9,685,327 Distribution Mains/Accessories 26,348,071 - - - 26,348,071 Pumping stations 13,234,861 - - - 13,234,861 Sewer Lines 38,284 - - - 38,284 Vehicles and equipment 5,331,550 209,897 41,489 - 5,499,958 Total capital assets, being depreciated 54,638,093 209,897 41,489 - 54,806,501 Less accumulated depreciation for: Buildings (1,434,243) (425,557) - - (1,859,800) Vehicles and equipment (3,703,221) (197,916) 40,686 - (3,860,451) Distribution Mains/Accessories (10,028,404) (496,914) - - (10,525,318) Pumping Stations (5,800,076) (247,388) - - (6,047,464) Sewer Lines (19,881) (759) - - (20,640) Total accumulated depreciation (20,985,825) (1,368,533) 40,686 - (22,313,673) Total capital assets, being depreciated, net 33,652,268 (1,158,636) (803) - 32,492,829 Total water fund capital assets, net $ 33,830,520 $ 1,953,903 $ (803) $ - $ 35,783,620 (Continued) 77 213

2023 Annual Comprehensive Financial Report for the City of Dover, Delaware Financial Section – Part C – Notes to the Basic Financial Statements Item 3. (Continued) Beginning Ending Balance Increases Decreases Adjustments Balance Business-type activities: Wastewater Fund Capital assets, not being depreciated Land $ 32,802 $ - $ - $ - $ 32,802 Construction in progress 485,557 20,369 469,746 - 36,180 Total capital assets, not being depreciated 518,359 20,369 469,746 - 68,982 Capital assets, being depreciated Buildings 62,041 - - - 62,041 Distribution Mains/Accessories 204,662 - - - 204,662 Pumping Stations 1 19,433,821 7,900 - 727 19,442,448 Sewer Lines 35,286,379 473,746 - - 35,760,125 Vehicles and equipment 2,769,862 182,981 41,141 - 2,911,702 Total capital assets, being depreciated 57,756,765 664,627 41,141 727 58,380,978 Less accumulated depreciation for: Buildings (47,367) (2,682) - - (50,049) Vehicles and Equipment (1,878,674) (164,481) 41,141 - (2,002,014) Distribution mains, hydrant, and accessories (20,705) (2,868) - - (23,573) Pumping Stations 2 (7,319,083) (587,116) - (30) (7,906,229) Sewer Lines (16,670,575) (791,282) - - (17,461,857) Total accumulated depreciation (25,936,404) (1,548,429) 41,141 (30) (27,443,722) Total capital assets, being depreciated, net 31,820,361 (883,802) - 697 30,937,256 Total wastewater fund capital assets, net $ 32,338,721 $ (863,433) $ (469,746) $ 697 $ 31,006,239 1 The capital asset adjustments to Pumping Stations was due to additional expense (improvement) on an existing asset. 2 The accumulated depreciation adjustment to Pumping Stations is due to the improvement noted above. (Continued) 78 214

2023 Annual Comprehensive Financial Report for the City of Dover, Delaware Financial Section – Part C – Notes to the Basic Financial Statements Item 3. (Continued) Beginning Ending Balance Increases Decreases Adjustments Balance Business-type activities: Electric Revenue Fund Capital assets, not being depreciated Land $ 1,458,066 $ - $ - $ - $ 1,458,066 1 2,399,672 3,712,855 895,447 (241,342) 4,975,738 Construction in progress Total capital assets, not being depreciated 3,857,738 3,712,855 895,447 (241,342) 6,433,804 Capital assets, being depreciated Buildings 13,287,398 88,365 252,800 - 13,122,963 Vehicles and Equipment 31,052,654 782,415 342,923 - 31,492,146 Transformers, Meters, T&D & Fiber Optic Lines, Street Lights 2 69,815,271 701,839 - - 70,517,110 SS, Switch Yards, Switchgears 36,728,771 - - - 36,728,771 Boiler, Turbo Generators, Cap Int - VS 39,122,189 - 1,464,658 - 37,657,531 Other (Streets, EST, Swr Lines, Wells, Eng & Legal Svcs, Land Impr) 7,662,503 - - - 7,662,503 Total capital assets, being depreciated 197,668,786 1,572,619 2,060,381 - 197,181,024 Less accumulated depreciation for: Buildings (10,548,832) (129,694) 71,627 - (10,606,899) Vehicles and Equipment (26,092,222) (763,499) 294,079 - (26,561,642) Transformers, Meters, T&D & Fiber Optic Lines, Street Lights 2 (42,551,065) (1,731,932) - (3,336) (44,286,333) SS, Switch Yards, Switchgears (18,651,854) (963,782) - - (19,615,636) Boiler, Turbo Generators, Cap Int - VS 2 (33,208,122) (358,060) 773,898 3,336 (32,788,948) Other (Streets, EST, Swr Lines, Wells, Eng & Legal Svcs, Land Impr) (6,782,825) (112,612) - - (6,895,437) Total accumulated depreciation (137,834,920) (4,059,579) 1,139,604 - (140,754,895) Total capital assets, being depreciated, net 59,833,866 (2,486,960) (920,777) - 56,426,129 Total electric revenue fund capital assets, net $ 63,691,604 $ 1,225,895 $ (1,816,224) $ (241,342) $ 62,859,933 1 The capital asset adjustment within the Construction in Progress section above is due to a deterimination that one project was a recurring maintenance expense, another project was emergency repairs, and 4 smaller projects completed in FY23 that were under the $5,000 threshold. 2 The adjustments in accumulated depreciation for Transformers and Boilers was to correct the account code due to a clerical error. (Continued) 79 215

2023 Annual Comprehensive Financial Report for the City of Dover, Delaware Financial Section – Part C – Notes to the Basic Financial Statements Item 3. (Continued) Beginning Ending Balance Increases Decreases Adjustments Balance Total Business-type Activities $ 129,860,845 $ 2,316,365 $ (2,286,773) $ (240,645) $ 129,649,792 Capital Assets, not being depreciated 4,554,350 6,845,763 (1,365,193) (241,342) 9,793,578 Capital Assets, being depreciated, net 125,306,495 (4,529,398) (921,580) 697 119,856,214 Total $ 129,860,845 $ 2,316,365 $ (2,286,773) $ (240,645) $ 129,649,792 General government $ 29,260 Central services 58,020 Public safety 437,227 Public works 3,224,049 Library and recreation 688,711 Financial administration 32,317 Total depreciation expense - governmental activities $ 4,469,584 80 216

2023 Annual Comprehensive Financial Report for the City of Dover, Delaware Financial Section – Part C – Notes to the Basic Financial Statements Item 3. LEASES The City leases two parcels of land on its Garrison Tract, relating to the Garrison Oak Business & Technology Center that result in rent revenue reported in the General Fund. The first lease is with LS Power – White Oak Solar Energy LLC, which generated $73,067 in rental income, and the second lease is with Garrison Energy Center which generated $40,248 in rental income. The total lease revenue generated by the City’s Electric Revenue Fund is $115,232, consisting of $65,339 for pole attachment rentals which began in fiscal year 2020, Dark Fiber leases in the amount of $19,893, and an annual substation rental of $30,000. The City maintains several water tower leases for a group of telecommunications companies. The transactions are recorded as revenue in the Water Fund and totaled $387,756 in the fiscal year ended June 30, 2023. The total amount of inflows of resources relating to leases recognized in the current fiscal year are as follows: Governmental Business-type Activities Activities Total Lease revenue $ 38,299 $ 313,761 $ 352,059 Interest revenue 75,017 189,227 264,244 As of June 30, 2023, the principal and interest requirements to maturity for the lease receivable are as follows: Governmental Activities Principal Interest Total 2024 $ 44,412 $ 74,031 $ 118,443 2025 51,015 72,870 123,885 2026 58,147 71,522 129,669 2027 65,847 69,970 135,817 2028 74,159 68,197 142,356 2029 - 2033 522,254 305,227 827,481 2034 - 2038 856,183 214,967 1,071,150 2039 - 2042 996,181 69,358 1,065,539 $ 2,668,198 $ 946,142 $ 3,614,340 81 217

2023 Annual Comprehensive Financial Report for the City of Dover, Delaware Financial Section – Part C – Notes to the Basic Financial Statements Item 3. Business-type Activities Principal Interest Total 2024 $ 327,807 $ 185,800 $ 513,607 2025 353,973 170,627 524,600 2026 383,042 152,960 536,003 2027 421,488 134,498 555,987 2028 384,090 112,779 496,869 2029 3,792 235 4,027 2029-2030 52,199 7,801 60,000 2029 - 2031 297,432 49,430 346,862 2029 - 2032 276,097 32,490 308,587 2029 - 2033 288,508 210,474 498,982 2034 - 2034 22,627 2,263 24,890 2034 - 2037 280,259 63,724 343,983 $ 3,091,315 $ 1,123,081 $ 4,214,396 As a lessee, the City Police Department leases a part of a firing range for firearm practice and qualification. In FY23, there are 3 years remaining on the lease, for $5,000 per year. SUBSCRIPTION-BASED INFORMATION TECHNOLOGY AGREEMENTS The City currently uses 2 subscription-based information technology agreements for the police department, including body-worn cameras and in-car cameras. Governmental Activities Principal Interest Total 2024 $ 77,838 $ 2,955 $ 80,793 2025 78,810 1,983 80,793 2026 79,795 998 80,793 $ 236,443 $ 5,936 $ 242,379 82 218

2023 Annual Comprehensive Financial Report for the City of Dover, Delaware Financial Section – Part C – Notes to the Basic Financial Statements Item 3. LONG -TERM OBLIGATIONS A. Summary of Bonded Indebtedness by Issue Original Remaining Interest Maturity Arbitrage Purpose Governmental Activities 2019 General Obligation Bonds $ 5,700,000 $ 4,343,268 2.39% 7/18/19 - 6/30/29 No Refund General Obligation Bonds Series 2012 and Series 2014 A, which funded public safety equipment and library, storm water and street infrastructure projects 2021 General Obligation Bonds 1,563,000 1,271,153 1.69% 7/15/21 - 6/15/31 No Provide funds to pay a portion of the costs of: Chiller replacement and cooling tower/pump replacement for Police Department, replace entire HVAC system at City Hall, replace HVAC system and all components at the Warehouse building and pay costs of issuance. Business Type Activities Water Bonds 2010 State of Delaware - Revolving 2,404,017 1,092,197 2.47% 4/1/12 - 10/1/30 No Water quality improvements and main replacements Loan Fund - Municipal Revenue Water and Wastewater capital project financing, refund 2003 Series WWW 2013 Revenue Bonds 4,295,463 2,051,303 3.58% 7/1/14 - 7/1/33 Yes bonds 2018 State of Delaware - Revolving 4,000,000 3,464,492 2.00% 12/1/20 - 6/1/39 No Water Treatment Plant Improvements Loan Fund - Municipal Revenue Wastewater Bonds 2009 State of Delaware - Revolving 5,581,059 2,700,425 2.00% 12/1/12 - 12/1/31 No Pump station replacements/upgrades and sanitary sewer main relining Loan Fund - Municipal Revenue 2011 State of Delaware - Revolving 765,060 422,366 2.00% 6/1/12 - 12/1/31 No Pump station replacements/upgrades and sanitary sewer main relining Loan Fund - Municipal Revenue Water and Wastewater capital project financing, refund 2003 Series WWW 2013 Revenue Bonds 1,829,538 873,698 3.58% 7/1/14 - 7/1/33 Yes bonds 2018 State of Delaware - Revolving Replacement of 3 Pump Stations: Delaware Tech, Walker Woods and 881,356 780,383 2.00% 10/1/20 - 4/1/39 No Loan Fund - Municipal Revenue Silver Lake 2020 State of Delaware - Revolving 732,200 716,266 2.00% 8/1/22 - 8/1/41 No Puncheon Run pump station grit removal system replacement Loan Fund - Municipal Revenue (Coverage ratio on Water/Wastewater Bonds requires net revenues to be at least 1.2 times the maximum annual debt service) Electric Revenue Bonds Refund Electric Revenue Bonds Series 2008, which funded system 2018 Revenue Bonds 15,700,000 12,580,000 3 - 5% 7/1/19 - 7/1/33 Yes expansion & upgrades (Coverage ratio on Electric Bonds requires net revenues to be at least 1.25 times the maximum annual debt service) 83 219

2023 Annual Comprehensive Financial Report for the City of Dover, Delaware Financial Section – Part C – Notes to the Basic Financial Statements Item 3. B. Status as of June 30, 2023 – General Obligation Bonds Long-term indebtedness of the City of Dover consists of Series 2019 General Obligation Bonds totaling $4,343,268 and Series 2021 General Obligation Bonds totaling $1,271,153 for a grand total of $5,614,421 in outstanding bonds. The total General Obligation Bonds outstanding amount includes $506,218 payable within one year. C. Change in Long-Term Debt The following tables summarize the debt transactions for the year ended June 30, 2023: 1. General Long-Term Debt Payable within Item Balance 6/30/22 Additions Reductions Balance 6/30/23 One Year Compensated Absences 2,625,451 2,316,998 1,996,811 2,945,638 1,492,424 General Obligation Bonds 6,111,209 - 496,788 5,614,421 506,218 Lease Liability 14,613 - 4,743 9,870 3,847 Net OPEB Liability 9,074,534 - 136,941 8,937,593 - Net Pension Liability 268,089 9,831,807 - 10,099,896 - Sub-total of General Long-Term Debt $ 18,093,896 $ 12,148,805 $ 2,635,283 $ 27,607,418 $ 2,002,489 2. Enterprise Funds Debt – Water and Wastewater Fund WATER FUND Payable within Item Balance 6/30/22 Additions Reductions Balance 6/30/23 One Year Compensated Absences $ 210,512 $ 306,664 $ 179,973 $ 337,203 $ 105,263 Revenue Bonds-Water 2,328,316 - 277,014 2,051,302 287,533 State of Delaware Municipal Revenue Bond - Water 4,868,984 - 312,295 4,556,689 319,375 Net OPEB Liability 262,083 - 255,917 6,166 - Net Pension Liability 2,290,413 128,939 - 2,419,352 - Sub-total of Water Fund $ 9,960,308 $ 435,603 $ 1,025,199 $ 9,370,712 $ 712,171 WASTEWATER FUND Payable within Item Balance 6/30/22 Additions Reductions Balance 6/30/23 One Year Compensated Absences $ 67,042 $ 69,594 $ 72,169 $ 64,466 $ 36,084 Revenue Bonds-Wastewater 991,684 - 117,986 873,698 122,467 State of Delaware Municipal Revenue Bond - Wastewater 5,006,870 - 387,430 4,619,440 411,989 Net OPEB Liability 160,919 - 139,774 21,145 - Net Pension Liability 1,348,702 38,197 - 1,386,899 - Sub-total of Wastewater $ 7,575,217 $ 107,791 $ 717,359 $ 6,965,648 $ 570,540 84 220

2023 Annual Comprehensive Financial Report for the City of Dover, Delaware Financial Section – Part C – Notes to the Basic Financial Statements Item 3. 3. Enterprise Funds Debt – Electric Revenue Fund Payable within Item Balance 6/30/22 Additions Reductions Balance 6/30/23 One Year Compensated Absences $ 467,989 $ 579,868 $ 411,167 $ 636,690 $ 328,557 Revenue Bonds 13,445,000 - 865,000 12,580,000 910,000 Bond Premium 907,305 - 82,482 824,823 82,482 Net OPEB Liability 861,489 859,092 - 1,720,581 - Net Pension Liability 6,557,671 212,804 - 6,770,475 - Asset Retirement Obligation 11,618,846 - - 11,618,846 - Sub-total of Electric Revenue Fund 33,858,300 1,651,764 1,358,649 34,151,415 1,321,039 Sub-total of Enterprise Fund Debt 51,393,825 2,195,158 3,101,207 50,487,775 2,603,750 Grand Totals of Long-Term Debt $ 69,487,721 $ 14,343,963 $ 5,736,490 $ 78,095,194 $ 4,606,239 The City does not receive reimbursement for debt service from any other governmental units. The City does not have any special assessment debt or defeased bonds as of June 30, 2023. In previous years, the City has used General Fund Revenues to liquidate Net Pension and Net OPEB Liabilities in the General Fund. D. Debt Service Requirements The following are the debt service requirements to maturity on the City's general obligation bonds and revenue bonds. 1. Governmental Activities: 2019 General Obligation Bonds 2021 General Obligation Bonds Total General Fiscal Fund Debt Service Year Principal Interest Principal Interest 2024 356,556 101,565 149,662 22,830 630,613 2025 364,092 92,569 152,211 17,774 626,646 2026 371,544 83,664 154,804 15,182 625,194 2027 379,140 74,576 157,440 12,545 623,701 2028 386,760 65,478 160,122 9,864 622,224 2029 2,485,176 55,843 162,849 7,136 2,711,004 2030 - - 165,622 4,363 169,985 2031 - - 168,443 1,542 169,985 Total $ 4,343,268 $ 473,695 $ 1,271,153 $ 91,236 $ 6,179,352 85 221

2023 Annual Comprehensive Financial Report for the City of Dover, Delaware Financial Section – Part C – Notes to the Basic Financial Statements Item 3. 2. Business-type Activities Water, Wastewater and Electric Revenue Funds 2009 Municipal Revenue 2010 Municipal Revenue 2011 Municipal Revenue Bonds (Wastewater) Bonds (Water) Bonds (Wastewater) Fiscal Year Principal Interest Principal Interest Principal Interest 2024 294,505 52,543 133,649 27,640 43,302 14,823 2025 300,424 46,624 137,160 24,129 44,875 13,250 2026 306,463 40,585 140,764 20,526 46,505 11,619 2027 312,623 34,425 144,461 16,828 48,195 9,930 2028 318,906 28,142 148,257 13,033 49,946 8,178 2029 325,316 21,732 152,151 9,138 51,761 6,364 2030 331,855 15,193 156,148 5,141 53,642 4,483 2031 338,526 8,522 79,607 1,039 55,592 2,534 2032 171,807 1,718 - - 28,548 514 Total $ 2,700,425 $ 249,484 $ 1,092,197 $ 117,474 $ 422,366 $ 71,695 (Continued) 86 222

2023 Annual Comprehensive Financial Report for the City of Dover, Delaware Financial Section – Part C – Notes to the Basic Financial Statements Item 3. 2. Business-type Activities (Continued) Water, Wastewater and Electric Revenue Funds 2013 Revenue Bonds 2018 Municipal Revenue 2018 Municipal Revenue 2020 Municipal Revenue 2018 Revenue Bonds Total Fiscal Water and Wastewater Loan (Wastewater) Loan (Water) Loan (Wastewater) Electric Business-Type Year Principal Interest Principal Interest Principal Interest Principal Interest Principal Interest Activities 2024 410,000 100,294 41,835 15,400 185,726 41,570 32,347 14,164 910,000 466,950 2,784,748 2025 215,000 90,919 42,676 14,559 189,459 38,971 32,997 13,514 955,000 420,325 2,579,882 2026 220,000 84,256 43,534 13,701 193,267 36,373 33,661 12,851 1,005,000 371,325 2,580,430 2027 225,000 77,106 44,409 12,826 197,152 33,775 34,337 12,174 1,055,000 319,825 2,578,066 2028 235,000 69,281 45,301 11,933 201,115 31,177 35,027 11,484 1,110,000 265,700 2,582,480 2029 245,000 60,269 46,212 11,023 205,157 28,579 35,731 10,780 1,160,000 214,750 2,583,963 2030 255,000 50,269 47,141 10,094 209,281 25,981 36,450 10,062 1,200,000 173,550 2,584,290 2031 265,000 39,869 48,088 9,146 213,487 23,383 37,182 9,329 1,240,000 136,950 2,508,255 2032 275,000 29,069 49,055 8,180 217,779 20,785 37,930 8,582 1,275,000 99,225 2,223,192 2033 285,000 17,869 50,041 7,194 222,156 18,187 38,692 7,820 1,315,000 60,375 2,022,333 2034 295,000 6,084 51,047 6,188 226,621 15,589 39,470 7,042 1,355,000 20,325 2,022,366 2035 - - 52,073 5,162 231,176 12,990 40,263 6,249 - - 347,912 2036 - - 53,120 4,115 235,823 10,392 41,072 5,439 - - 349,961 2037 - - 54,187 3,047 240,563 7,794 41,898 4,614 - - 352,103 2038 - - 55,276 1,958 245,398 5,196 42,740 3,772 - - 354,340 2039 - - 56,388 847 250,332 2,598 43,599 2,912 - - 356,677 2040 - - - - - - 44,475 2,036 - - 46,511 2041 - - - - - - 45,369 1,142 - - 46,511 2042 - - - - - - 23,026 230 - - 23,256 Total $ 2,925,000 $ 625,285 $ 780,383 $ 135,372 $ 3,464,492 $ 353,340 $ 716,266 $ 144,197 $ 12,580,000 $ 2,549,300 $ 28,927,276 87 223

2023 Annual Comprehensive Financial Report for the City of Dover, Delaware Financial Section – Part C – Notes to the Basic Financial Statements Item 3. E. Certain Asset Retirement Obligation The City recognized an Asset Retirement Obligation (ARO) related to an electric generating facility. An ARO is a legally enforceable liability associated with the retirement of a tangible asset. The McKee Run Generating Station is an electric generating facility owned and operated by the City since 1972 and was shut down on May 31, 2021. A legal obligation exists for the City to perform future retirement activities for the decommissioning of the McKee Run Generating Station, as the site contains hazardous and other materials that require special handling, based upon Federal Regulations and the Delaware Department of Natural Resources and Environmental Control (DNREC). The City engaged a specialist to estimate the cost of decommissioning the station, and initially in fiscal year 2020 recognized a liability of $11,915,849. This year it has been reduced to $11,249,035 due to payment of invoices in the amount of $369,811. RESTRICTED NET POSITION In the government-wide financial statements, the restricted net position of the governmental activities and business type activities are as follows: Governmental Activities Grants-capital projects This represents the State DOT grant $ 70,115 reported in the non-major special revenue funds. Grants-public safety These represent the Police grants, ERLSP 231,957 grant and Substance Abuse Prevention grant in the special revenue type funds. Other Purposes These represent all other funds reported in 2,661,163 the special revenue type, except the grants reserved for capital construction and public safety. Also included is the interest from an endowment from Mary Elizabeth Paton and the verizon reserve. Total Restricted Net Position $ 2,963,235 Business Type Activities Net restricted position for construction purposes - expendable Water and Wastewater Restrictions on investments $ 8,752,689 imposed by bond covenants Electric Restrictions on investments 62,480,934 imposed by bond covenants Total Restricted Net Position $ 71,233,623 FUND BALANCES & NET POSITION In the governmental fund financial statements, fund balances are reported based on a hierarchy of constraints on the specific purposes for which the funds can be spent. Non-spendable fund balances represent items that are not in spendable form and not expected to be converted to cash. This criterion also applies to the corpus of permanent funds, which would include the Mary Elizabeth Paton library endowment. 88 224

2023 Annual Comprehensive Financial Report for the City of Dover, Delaware Financial Section – Part C – Notes to the Basic Financial Statements Item 3. Restricted fund balances represent amounts that have externally imposed restrictions by creditors, grantors, enabling legislation or laws and regulations of other governments. The fund balances of the City’s grant funds fall into this category, as well as a couple of accounts that have contractual restrictions imposed by a third party. Committed fund balances represent amounts that can be used only for specific purposes pursuant to constraints imposed by formal action of City Council through a motion or an adopted city ordinance. These amounts cannot be used for any other purpose unless the government removes or changes the specified use by taking the same type of action to which it previously committed the amount. Assigned fund balances represent amounts constrained by the City’s intent to be used for specific purposes. These amounts represent the City’s capital asset appropriations. The constraints placed on assigned fund balances are implemented through internal processes such as a budget ordinance or motion of City Council. Therefore, assigned fund balances do not have the same restrictive nature as a restricted fund balance. Unassigned fund balance is the residual amount that has not met the criteria for the previously mentioned classifications. The unassigned fund balance is available for expenditures as they are incurred. The General Fund is the only fund that reports a positive unassigned fund balance amount. However, in governmental funds other than the General Fund, if expenditures incurred for specific purposes exceed the amounts that are restricted, committed, or assigned to those purposes, it may be necessary to report a negative unassigned fund balance in that fund. 89 225

2023 Annual Comprehensive Financial Report for the City of Dover, Delaware Financial Section – Part C – Notes to the Basic Financial Statements Item 3. The composition of the City fund balances as of June 30, 2023, follows: Other General Governmental Fund Funds Total Fund balances: Nonspendable: Inventory & Prepaids $ 1,029,035 $ 414 $ 1,029,449 Patronage Stock 16,594 - 16,594 Library Endowment 5,000 5,067 10,067 Subtotal Nonspendable: 1,050,629 5,481 1,056,110 Restricted for: Library Endowment Interest 2,728 - 2,728 Verizon cable franchise 73,979 - 73,979 Highway resurfacing - 70,114 70,114 CDBG - 1,142 1,142 ARPA Grant - 4,744,797 4,744,797 Substance Abuse Prevention - 43,429 43,429 Library Grants - 161,173 161,173 Police Grants - 1,188,114 1,188,114 Subtotal Restricted for: 76,707 6,208,769 6,285,476 Committed to: Contingency 749,396 - 749,396 Parkland 1,449,173 - 1,449,173 Subtotal Committed to: 2,198,569 - 2,198,569 Assigned to: Capital Projects 8,316,979 - 8,316,979 Subtotal Assigned to: 8,316,979 - 8,316,979 Unassigned 10,686,853 - 10,686,853 Total fund balances $ 22,329,737 $ 6,214,249 $ 28,543,986 As noted in the Introductory section of this report (page 8), the City has established the “City of Dover, Delaware Financial Policies” booklet, which is a standardized set of principles managed by the Finance Department to ensure that the City follows the minimum fund balance policies. PROPERTY TAXES Property taxes are levied under the authority of the City Charter on all real property located within the City limits. The City Assessor oversees the property assessments, and the City Council levies the property tax rate. The following table provides important dates with reference to property taxes. Beginning of fiscal year for taxes July 1 Tax rate levied 2nd Council Meeting in June Taxes billed July 1 Taxes due and payable at par July 31 Penalty of one and one-half percent starts August 1 Lien established on property for property taxes July 1 Tax sales of property with unpaid taxes 2 years from date of billing As of June 30, 2023, there were no material delinquent taxes. 90 226

2023 Annual Comprehensive Financial Report for the City of Dover, Delaware Financial Section – Part C – Notes to the Basic Financial Statements Item 3. INTERFUND RECEIVABLES, PAYABLES AND TRANSFERS The composition of interfund balances as of June 30, 2023, follows: A. Due to/from other funds – Charges and Allocations Receivable Fund Payable Fund Amount General Fund Non-Major Governmental Funds $ 300,455 Water Fund 2,813 Wastewater Fund 1,970 Electric Revenue Fund 245,095 550,333 Water Fund General Fund 133 133 Wastewater Fund General Fund 132 Water Fund 46,686 Non-major governmental funds 46,818 Total $ 597,284 B. Temporary Advances Receivable Fund Payable Fund Amount General Fund CDBG Fund $ 107,800 The outstanding balances between funds result mainly from the time lag between the dates that (1) interfund goods and services are provided or reimbursable expenditures occur, (2) transactions are recorded in the accounting system, and (3) payments between funds are made. C. Interfund Transfers Transfers In Non-Major Water Electric Transfers Out General Fund Governmental Funds Revenue Fund Revenue Fund Total Non-Major Governmental Funds $ 3,999,745 $ 401,858 $ 1,927,722 $ 50,000 $ 6,379,325 Water Fund 1,025,000 - - 1,025,000 Wastewater Fund 1,025,000 - - 1,025,000 Electric Revenue Fund 8,000,000 - - 8,000,000 General Fund - - 25,000 25,000 Total $ 14,049,745 $ 401,858 $ 1,927,722 $ 75,000 $ 16,454,325 Transfers are generally made to provide operating capital or debt service subsidies to the receiving fund in accordance with City policy. 91 227

2023 Annual Comprehensive Financial Report for the City of Dover, Delaware Financial Section – Part C – Notes to the Basic Financial Statements Item 3. MATERIAL COMMITMENTS A. The City entered into a long-term Renewable Generation Unit Power Purchase Agreement with FPS Raceway Solar, LLC effective August 24, 2020. FPS Raceway Solar, LLC will supply certain energy, REC's and capacity generated by the electric generation facility to be located in Harrington, DE. Once the project is completed it will provide power to the City of Dover for a period of 25 years. B. The City is the guarantor on three loans in the original amounts of $635,300, $757,900 and $750,000 for the Dover Fire Department: a separate entity from the City of Dover. The City also budgets financial contributions to assist the volunteer fire company with the acquisition of firefighting apparatus and maintenance of the building and other necessary equipment. The current fiscal year includes $51,501 in expenditure for a Red Ford F250; $146,238 for 2 Command Vehicles, and $31,016 for an All-Terrain Vehicle. C. The City entered a three-year management contract with The Energy Authority effective July 1, 2016, to provide a market-based approach for power supply management. The City has extended the contract through June 30, 2023. The Energy Authority manages energy purchases and utilizes the City’s generating assets to provide a level of rate stability and to mitigate the effects of volatility in the energy markets. D. The City entered a management contract with North American Energy Services (NAES) to operate and maintain the Van Sant plant of the electric utility in August 2022. NAES has been under contract with the City as the operator of the generating assets since May 2006. Previous contracts included the operation and maintenance of two generating stations, McKee Run and Van Sant. In May 2021 McKee Run was retired after which a request for proposals was circulated for the Operation and Maintenance of the Van Sant Plant only through 2027. The City has incorporated the budgets and financial activity of the generating asset into its procedures used for all other divisions of the electric utility. These procedures include a line-item budget and adherence to City policies. All personnel are employed by NAES, and personnel costs are billed to the City bi-weekly. Any capital improvements are included in the City’s capital improvement plan. The contract also provides for a monthly management fee and a performance incentive based on budget and plant performance. The cost estimate for the annual management fee and incentives totals $145,561 per year and is included in the plant operating budget. E. There are no significant encumbered amounts where the resources have already been restricted. FORWARD CONTRACTS Pursuant to the July 1, 2011 Energy Management Agreement between the City and The Energy Authority (TEA), the City has formed an Executive Risk Management Committee (ERMC). The ERMC has adopted a Governing Policy for Energy Commodity Risk Management (Policy) aimed at addressing the energy commodity risks and the Procedures and Controls Manual for Energy Commodity Risk Management (Procedures Manual). The Procedures Manual further describes the risk management philosophy under which TEA, the City’s designated provider of energy risk management services conducts its activities. The Procedures Manual authorizes TEA to enter into physical forward transactions which shall be governed by Edison Electric Institute (EEI), North American Energy Standards Board (NAESB), or similar agreements with counterparties approved by the City. These agreements will enable the City to hedge the forward price of purchased power, natural gas or fuel oil for delivery as needed to meet its load requirements. No speculative transactions for volumes in excess 92 228

2023 Annual Comprehensive Financial Report for the City of Dover, Delaware Financial Section – Part C – Notes to the Basic Financial Statements Item 3. of forecasted power and fuel needs are permitted. TEA also provides advisory services to the City to determine the extent to which financial hedges would mitigate market and credit risk to the benefit of the City. These contracts meet the definition of a derivative instrument as defined by GASB Statement No. 53, Accounting and Reporting for Derivative Instruments (GASB 53). However, these contracts meet the normal purchases and sales exemption of GASB 53 as the City intends to use the physical commodity in its normal utility operations to supply energy to its customers. Accordingly, these contracts are not within the scope of GASB 53 and are not recorded on the City’s Statement of Net Position. Under the Procedures manual the City will not extend credit to any potential counterparty that has a credit rating below investment grade (defined as BBB as rated by S&P Global Ratings or Baa2 as rated by Moody’s Investors Service). Any counterparty that is unrated by either S&P or Moody’s must be approved by the ERMC prior to the execution of any trading activities. Credit risk is mitigated using collateral thresholds, credit limits, maximum nominal exposure and term limitations. A collateral threshold is the amount of unsecured credit granted to the counterparty. Unsecured credit exposure includes amounts owed by the counterparty, whether billed or not, and the marked-to-market differences in value of any collateral held. Any net exposure above the collateral threshold will require the posting of collateral by the counterparty. Collateral thresholds, term limitations and credit exposure limits are subject to maximums as established by the ERMC. 93 229

2023 Annual Comprehensive Financial Report for the City of Dover, Delaware Financial Section – Part C – Notes to the Basic Financial Statements Item 3. A summary of the contracts outstanding as of June 30, 2023 are as follows: Collateral Summary Counterparty Credit Risk w/o Counterparty Line Counterparty or Guarantor Respect to Collateral Description Thresholds Availability Credit Rating Collateral ($) AEP Energy Partners, Inc. BBB $10,000 $11,230 ($1,230) No Collateral if exposure under specified threshold Barclays Bank, PLC A $15,000 $15,000 $0 No Collateral if exposure under specified threshold BP Energy Company A- $15,000 $15,000 $0 No Collateral if exposure under specified threshold Calpine Energy Services, L.P. B+ $0 ($3,791) $3,791 No Collateral if exposure under specified threshold Carl King Energy Services division of Griffith Energy B+ $0 $0 $0 No specified threshold Up to $10,000 is guaranteed by Citigroup Global Markets Holdings Citigroup Energy, Inc. A $7,000 $7,000 $0 Inc. Conectiv Energy Supply, Inc. NR $0 $0 $0 No Defined threshold, $10,000 for planning purposes Colonial Energy, Inc. NR $0 $0 $0 No specified threshold Threshold is $18 million unless guarantor's credit rating falls below EDF Trading North America, LLC BBB- $18,000 $18,000 $0 Baa3 Constellation Energy Generation, LLC BBB $30,000 $30,000 $0 No collateral if exposure under specified threshold Hess Corporation BBB- $0 $0 $0 No specified threshold Constellation Energy Services, Inc. BBB $0 $0 $0 Lesser of guaranty or threshold, currently no guaranty Macquarie Energy, LLC A $15,000 $15,161 ($161) Up to $15,000 is guaranteed by Macquarie Bank Limited Unlimited guaranty from Morgan Stanley, threshold set by table in Morgan Stanley Capital Group Inc. A- $15,000 $16,369 ($1,369) contract Up to $10,000 is guaranteed by NextEra Energy Capital Holdings, NextEra Energy Power Marketing, LLC. BBB+ $10,000 $2,139 $7,861 Inc.; $17,700 collateral held for exposures above threshold NJR Energy Services Company NR $0 $0 $0 No specified threshold Peninsula Energy Services Company, Inc. NR $0 $0 $0 No specified threshold Peninsula Oil Company, Inc. NR $0 $0 $0 No specified threshold PSEG Energy Resources & Trade, LLC BBB $5,000 $5,000 $0 Up to $5,000 is guaranteed by PSEG Power LLC Sequent Energy Management, L.P. BBB $5,000 $5,000 $0 Unlimited guaranty from Williams Company, threshold is $5,000 Tri Gas & Oil Co., Inc. NR $0 $0 $0 No specified threshold 94 230

2023 Annual Comprehensive Financial Report for the City of Dover, Delaware Financial Section – Part C – Notes to the Basic Financial Statements Item 3. INSURANCE A. Health Insurance – State of Delaware The City participates in the State of Delaware Health Insurance Program. The State offers four health plan options. The administration of benefits is coordinated with Aetna and Highmark Delaware. Pre- determined premiums consisting of City and employee contributions are subsequently paid to the State of Delaware. B. Workers’ Compensation Fund – Self-Insurance On July 1, 1990, the City began self-insuring its Workers’ Compensation insurance. For this purpose, the City has established a separate fund. Claims are processed and administered by a third-party administrator. The City manages the revenue and expenditures in this fund and maintains all records. The City maintains a fund balance reserve to cover any claims incurred but not reported. AMI Risk Consultants completed an updated valuation in fiscal year 2019. As of June 30, 2023, $211,777 is reserved for open claims in this fund. An appropriate umbrella policy for the excess coverage has been purchased and is in effect as of June 30, 2023. Workers’ Compensation activity is recorded in the Workers’ Compensation Fund as follows: 2023 2022 Claims payable, beginning of year $ 182,825 $ 288,538 Claims incurred 217,216 274,337 Payment of claims (188,264) (380,050) Claims payable, end of year $ 211,777 $ 182,825 C. Other than Health or Workers’ Compensation Insurance The City purchases commercial insurance policies to cover risks not insured through self-insurance funds. The City has designated a contingency account to provide for uninsured losses (See Note 9). There have been no significant reductions or settlements exceeding coverage in the past five fiscal years. COMPENSATED ABSENCES The City grants a specific number of vacation days with pay to its employees. Upon termination or retirement, an employee is paid for accumulated vacation days. The City also grants one paid sick day per month to all employees, except for employees covered by the International Brotherhood of Electric Workers (IBEW) contract. The IBEW employees are granted eleven sick days per year. 231 95

2023 Annual Comprehensive Financial Report for the City of Dover, Delaware Financial Section – Part C – Notes to the Basic Financial Statements Item 3. The City of Dover follows a terminal leave policy which varies with each of the four labor unions, as well as the non-bargaining group. The maximum accumulated sick days paid upon retirement is 150 days for 25 years of service. No accrued sick leave is paid when an employee is terminated. In the government- wide and proprietary fund financial statements, unpaid compensated absences are recorded as a liability as the vested employees' benefits accrue, to the extent it is probable that the employee will be paid for comp time, sick and vacation benefits at retirement. In governmental funds, compensated absences are recorded as expenditures as payments become due; accordingly, no liability is recorded in the Governmental Funds statement. Typically, the General Fund has been used in prior years to liquidate the liability for compensated absences recorded in governmental activities. OTHER POST-EMPLOYMENT BENEFITS Plan Description On May 11, 2009, the City of Dover Other Post-Employment Benefits Trust (OPEB Trust) was established pursuant to Section 115 of the Internal Revenue Code. Policy for and management of the OPEB benefits provided to retirees are the responsibility of the City of Dover. No stand-alone financial report is issued for the OPEB Trust. The City of Dover OPEB Plan is a post-retirement employee benefit program established for the purpose of funding retiree health care as provided for in Chapter 80, Article IV, Division 5 of the Code of Ordinances. The OPEB Plan is a single employer defined benefit plan. The OPEB Plan provides retirement medical coverage to pensioners and their eligible dependents in the City of Dover defined benefit and defined contribution pension plans as well as the State of Delaware’s Police defined benefit plan. Plan Administration Management of the plan investments are fully vested with the City of Dover OPEB Board as established in the City Code, which consists of five members - two Council members appointed by the Council President, the City Manager, the Controller/Treasurer, and the Human Resources Director. The City Manager, the Controller/Treasurer, and the Human Resources Director serve as ex-officio members. Milliman of Albany, New York provides asset management advisory and consulting services to the Board. The City purchases health insurance from the State of Delaware through a cooperative purchasing arrangement permitted by State Code. The State Office of Benefits provides the City with the medical insurance premiums by type of coverage and carrier during the budget cycle each year. The City also pays a five percent risk premium and contract administration fee of $2.70 for each contract in addition to the premium. Any premiums paid over or under the benefits paid out for City employees revert to the State. 232 96

2023 Annual Comprehensive Financial Report for the City of Dover, Delaware Financial Section – Part C – Notes to the Basic Financial Statements Item 3. Membership of the plan consisted of the following on June 30, 2023: Retirees and beneficiaries receiving benefits 280 Terminated plan members entitled to but not yet receiving the benefits 13 Active plan members 321 Total 614 Substantially all City employees become eligible for post-retirement benefits if they reach retirement age while working for the City. The costs of providing these benefits are shared between the City and the retired employee. Employee Benefits and Contributions The City maintains contracts with each of the following collective bargaining units. • The International Brotherhood of Electric Workers (IBEW) union contract period is July 1, 2020, through June 30, 2023. • The American Federation of State, County, and Municipal Employees (AFSCME), Council 81 contract period is July 1, 2020, through June 30, 2023. • The Fraternal Order of Police Lodge #15 (FOP) union contract period is July 1, 2021, through June 30, 2024. • The Dover Organization of Employees (DOE) union contract period is July 1, 2021, through June 30, 2024. The eligibility provisions for early retirement are as follows: SUMMARY OF PRINCIPAL PLAN PROVISIONS Benefits for Civilians: A. Covered Groups: Full-time DOE (formerly IUE), IBEW, AFSCME and non-union employees and their dependents are covered. B. Eligibility: Satisfaction of either of the following eligibility requirements: 1. Unreduced Retirement: Attainment of the earlier of the following conditions: a. Later of attainment of age 65 and completion of 10 years of service. b. If hired prior to May 1, 1994, later of attainment of age 50 and completion of 20 years of service. c. If hired prior to May 1, 1994, completion of 25 years of service. d. If hired on or after May 1, 1994, later of attainment of age 55 and completion of 80 points (age plus service). 2. Reduced Retirement: For DOE, AFSCME and non-union members hired prior to July 1, 1994, attainment of age 55 and completion of 10 years of service. Other members who meet this condition have the option to pay 100% of the premiums for coverage. (Continued) 233 97

2023 Annual Comprehensive Financial Report for the City of Dover, Delaware Financial Section – Part C – Notes to the Basic Financial Statements Item 3. (Continued) 3. Vested Termination: For DOE, AFSCME and non-union members hired prior to July 1, 1994, completion of 10 years of service. Coverage commences upon attainment of age 65. Coverage is not available to other members. 4. Active Death: Surviving spouses are eligible for 50% of monthly payment of members eligible or not yet eligible for an unreduced pension upon death or for DOE and non-union members hired prior to July 1, 1994, if member completed 10 years of service. SUMMARY OF PRINCIPAL PLAN PROVISIONS C. Premium Cost Sharing: Cost-sharing varies by employee group, date of retirement and/or date of hire as follows: 1. Non-Union Employees: a. None if retired prior to July 1, 1991 b. 0% for individual coverage and 25% for spouse coverage if retired on or after July 1, 1991, and prior to July 1, 2012 c. 15% for individual and spouse coverage if retired on or after July 1, 2012 2. DOE Employees: a. None if retired prior to September 1, 1991 b. 0% for individual coverage and 25% for spouse coverage if retired on or after September 1, 1991, and prior to June 1, 2013 c. 15% for individual and spouse coverage if hired prior to December 22, 2015, upon direct retirement with an unreduced pension d. 20% for individual coverage if hired on or after December 22, 2015, upon direct retirement with an unreduced pension. The retiree will have the option to purchase dependent coverage under the City’s group rate plan at full cost to the employee/retiree. 3. IBEW Employees: a. 0% for individual coverage and 25% for spouse coverage if hired prior July 1, 1986 b. 0% for individual coverage and 100% for spouse coverage if hired on or after July 1, 1986, and prior to July 1, 2014 c. 20% for individual coverage and 100% for spouse coverage if hired on or after July 1, 2014 4. AFSCME Employees: a. 0% for individual coverage and 25% for spouse coverage if retire prior to July 1, 2015 b. 15% for individual and spouse coverage if hired prior to May 20, 2014, and retire on or after July 1, 2015 c. 20% for individual coverage and 100% for spouse coverage if hired on or after May 20, 2014 D. Benefit Duration: Retiree coverage is provided for lifetime. Spouse coverage is provided for the spouse’s lifetime. E. Medicare Part B Reimbursement: Eligible retirees receive reimbursement of the Medicare Part B premium. The Medicare Part B standard premium was $164.90 for 2023; for 2022, the standard 234 98

2023 Annual Comprehensive Financial Report for the City of Dover, Delaware Financial Section – Part C – Notes to the Basic Financial Statements Item 3. premium was $170.10. Spouses are not eligible for the reimbursement. Eligible retirees are: 1. Non-union and AFSCME employees who were hired prior to July 28, 2009. 2. IBEW employees who retired prior to July 1, 2009. 3. DOE employees who retired prior to January 31, 2010. Benefits for Police Officers: A. Covered Groups: Full-time FOP employees and their dependents are covered. Only provisions for members hired on or after September 1, 1982, are shown. B. Eligibility: Satisfaction of either of the following eligibility requirements: 1. Unreduced Retirement: Attainment of the earlier of the following conditions: a. Later of attainment of age 62 and completion of 10 years of service. b. Completion of 20 years of service. c. Later of completion of 10 years of service and 75 points (age plus service). 2. Reduced Retirement: Not applicable. 3. Vested Termination: None. 4. Active Death: Surviving spouses of members eligible for an unreduced pension upon death. C. Premium Cost Sharing: 1. None if retired prior to July 1, 1991 2. 0% for individual coverage and 25% for spouse coverage if retired on or after July 1, 1991, and prior to July 1, 2012 3. 15% for individual and spouse coverage if retire on or after July 1, 2012. 4. Employees hired on or after October 9, 2015, contribute 20% for individual coverage. The retiree will have the option to purchase dependent coverage under the City’s group rate plan at full cost to the employee/retiree. D. Benefit Duration: Retiree coverage is provided for lifetime. Spouse coverage is provided for the spouse’s lifetime. E. Medicare Part B Reimbursement: Eligible retirees receive reimbursement of the Medicare Part B premium. The Medicare Part B standard premium was $170.10 for 2022; for 2021, the standard premium was $148.50. Spouses are not eligible for the reimbursement. Eligible retirees are members who retired prior to September 30, 2006. Employer Contributions: The City of Dover funds the other post-employment benefits for current retirees on a pay-as-you-go basis along with funding for future benefits at a rate that is approved in the annual budget, but not actuarially determined. Additional funding has also been provided on an ad hoc basis. The employer contributions towards retiree health care premiums this fiscal year are as follows: 235 99

2023 Annual Comprehensive Financial Report for the City of Dover, Delaware Financial Section – Part C – Notes to the Basic Financial Statements Item 3. General Government $ 2,526,261 Water and Wastewater Fund 307,632 Electric Revenue Fund 949,058 Total Contributions $ 3,782,951 Transactions are recorded in the OPEB Trust for the payment of administrative and investment expenses and financed through investment earnings. City appropriations and other employer contributions for health care are recorded in the OPEB Trust. The OPEB Board of Trustees is responsible for the management of the trust investments. Contributions The contribution rates for the employer are established annually by the budgeting process of the City. Those rates include an employer contribution based on projected pay-as-you-go financing requirements as a percent of premiums, with an additional amount to prefund benefits, which is not actuarially determined. For the year ended June 30, 2023, the City’s average contribution rate was 13.4% of covered payroll of $28,253,889. The components of the Net OPEB liability of the City on June 30, 2023, are as follows: Other Post Employment Benefits Fund Changes in Net OPEB Liability Increase Total (Decrease) OPEB Plan Fiduciary Net OPEB Liability Net Position Liability Changes in Net OPEB Liability (a) (b) (a) - (b) Balances as of June 30, 2022 $ 58,701,844 $ 48,342,818 $ 10,359,026 Changes for the year: Service cost 1,195,018 - 1,195,018 Interest 3,994,126 - 3,994,126 Differences between expected and actual exp (733,957) - (733,957) Changes in assumptions 4,429,099 - 4,429,099 Benefit payments (3,023,499) (3,023,499) - Employer contributions - 3,782,951 (3,782,951) Net investment income - 4,776,525 (4,776,525) Trust administrative expenses - (1,650) 1,650 Balances as of June 30, 2023 $ 64,562,631 $ 53,877,145 $ 10,685,485 Plan Fiduciary Net Position as % of total OPEB Liability 82.4% Rate of return. For the year ending June 30, 2023, the annual money-weighted rate of return on investments, net of investment expense, was 9.59%. The money-weighted rate of return expresses investment performance, net of investment expense, adjusted for the changing amounts invested. 236 100

2023 Annual Comprehensive Financial Report for the City of Dover, Delaware Financial Section – Part C – Notes to the Basic Financial Statements Item 3. Actuarial Methods and Significant Assumptions Actuarial cost method Entry Age Normal Funding Method with Level % of Payroll Asset valuation date June 30, 2023 Asset valuation method Market value of assets Actuarial assumptions: Expected Return on Assets 7.0% Discount rate 7.0% Inflation rate 2.5% Healthcare cost trend rates Initial rate of 7.5% decreasing to 7.0% for 2025, 5.29% by 2030 and Pre-Medicare 4.54% by 2050, ultimately leveling off at 4.04% in 2075. Initial rate of 10.8% decreasing to 7.0% for 2025, 5.29% by 2030 and Medicare 4.54% by 2050, ultimately leveling off at 4.04% in 2075. Mortality Active Employees: SOA Pub-2010 General Employees Headcount Weighted Mortality Table, Civilians projected on a fully generational basis using mortality improvement scale MP-2021 SOA Pub-2010 Public Safety Employees Headcount Weighted Mortality Police Officers Table, projected on a fully generational basis using mortality improvement scale MP-2021 Terminated Vested Participants, Healthy Retirees and Spouses: SOA Pub-2010 General Retirees Headcount Weighted Mortality Table, Civilians projected on a fully generational basis using mortality improvement scale MP-2021 SOA Pub-2010 Public Safety Retirees Headcount Weighted Mortality Police Officers Table, projected on a fully generational basis using mortality improvement scale MP-2021 Surviving Spouses SOA Pub-2010 General Contingent Survivors Headcount Weighted Civilians Mortality Table, projected on a fully generational basis using mortality improvement scale MP-2021 SOA Pub-2010 Public Safety Contingent Survivors Headcount Weighted Police Officers Mortality Table, projected on a fully generational basis using mortality improvement scale MP-2021 Disabled Retirees SOA Pub-2010 General Disabled Retirees Headcount Weighted Mortality Civilians Table, projected on a fully generational basis using mortality improvement scale MP-2021 Changes in Actuarial Assumptions or Methods The long term expected rate of return on OPEB plan investments was determined using a building block method in which best-estimate ranges of expected future real rates of return (expected returns, net of investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. Best estimates of arithmetic real rates of return for each major asset class included in the target asset allocation as of June 30, 2023, are summarized in the following table: 237 101

2023 Annual Comprehensive Financial Report for the City of Dover, Delaware Financial Section – Part C – Notes to the Basic Financial Statements Item 3. OPEB Trust Long-Term Expected Rate of Return Long-Term Target Expected Real Asset Class Allocation* Rate of Return Cash & Short-Term Bond 9.00% 2.66% - 3.47% Fixed Income 22.00% 2.27% - 6.37% Equity 64.00% 7.29% - 11.11% Real Estate 5.00% 8.18% Long-Term Expected Rate of Return 7.00% *The best-estimate range for the long-term expected rate of return is determined by adding expected inflation to expected long-term real returns and reflecting expected volatility and correlation. The capital market assumptions are per Milliman's investment consulting practice. Discount Rate The discount rate used to determine the liabilities under GASB 74 an 75 depends upon the entity’s funding policy. The City has established an irrevocable Trust and adopted a funding policy to contribute the Actuarial Determined Contribution (ADC) each year. Under this policy, the plan is projected to be solvent in the future, and therefore the discount rate is the expected rate of return of 7.00%. Sensitivity of the Net OPEB Liability to Changes in the Discount Rate The following presents the net OPEB liability as of June 30, 2023, calculated using the discount rate of 7.00%, as well as what the City’s net OPEB liability would be if it were calculated using a discount rate that is 1 percentage point lower (6.00%) or 1 percentage point higher (8.00%) than the current rate. Other Post-Employment Benefits 1% Current 1% Decrease Discount Rate Increase 6.00% 7.00% 8.00% Net OPEB liability $ 19,596,069 $ 10,685,486 $ 3,379,669 Sensitivity of the Net OPEB Liability to Changes in the Healthcare Cost Trend Rate The following presents the net OPEB liability as of June 30, 2023, calculated using the health care trend rates assumed and what it would be using 1% higher and 1% lower health care trend rates: 238 102

2023 Annual Comprehensive Financial Report for the City of Dover, Delaware Financial Section – Part C – Notes to the Basic Financial Statements Item 3. Health Care Trend Rates Assumptions 1% Current 1% Decrease Discount Rate Increase 3.04% 4.04% 5.04% Net OPEB liability $ 2,899,791 $ 10,685,486 $ 20,307,336 OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB For the year ended June 30, 2023, the City recognized OPEB expense (credit) of ($807,395) as calculated in the following table: OPEB Expense Service cost $ 1,195,018 Interest 3,994,126 OPEB plan administrative expenses 1,650 Projected earnings on OPEB plan investments (3,410,520) Current period recognition of deferred outflows/(inflows) of resources Differences between expected and actual experience (3,700,308) Net difference between projected and actual earnings on plan investments 415,173 Changes of assumptions 697,466 Total OPEB Credit $ (807,395) On June 30, 2023, the City reported deferred outflows (inflows) of resources related to OPEB from the following sources: Deferred Outflows Deferred Inflows Deferred Outflows (Inflows) of Resources Differences between expected and actual experience $ - $ 5,399,234 Changes in assumptions 4,951,244 2,114,264 Net difference between projected and actual earnings in 2,613,494 - OPEB plan investments Total Deferred Outflows (Inflows) of Resources $ 7,564,738 $ 7,513,499 239 103

2023 Annual Comprehensive Financial Report for the City of Dover, Delaware Financial Section – Part C – Notes to the Basic Financial Statements Item 3. Amounts reported as deferred inflows of resources related to OPEB will be recognized in OPEB expense as follows: Fiscal Year Ending June 30: 2024 $ (1,846,635) 2025 (1,137,532) 2026 1,461,034 2027 188,691 2028 461,892 Thereafter 923,790 Separate Other Postemployment Benefit fund financial statements have not been issued; accordingly, they are presented separately, as follows: The City of Dover, Delaware Schedule of Other Post-Employment Benefits Trust Fund Net Position June 30, 2023 Other Post-Employment Benefit Trust Fund Assets: Cash and cash equivalents $ 2,951,384 Receivables Investments at Fair Value - Mutual Funds - Total Assets 2,951,384 Liabilities: Accounts Payable - Total Liabilities - Net Position: Net Position Restricted for Retiree Health Benefits $ 2,951,384 240 104

2023 Annual Comprehensive Financial Report for the City of Dover, Delaware Financial Section – Part C – Notes to the Basic Financial Statements Item 3. The City of Dover, Delaware Schedule of Changes in Other Post-Employment Benefits Trust Fund Net Position June 30, 2023 Other Post-Employment Benefit Trust Fund Additions: Net Investment Income $ 4,776,525 City's Contribution-Payroll Based 235,551 City's Contribution-Lump Sum 3,547,400 Total Additions 8,559,476 Deductions: Benefit Payments 3,023,499 General Administration 1,650 Total Deductions 3,025,149 Change in Net Position Net Position - Beginning 48,342,818 Net Position - Ending $ 53,877,145 DEFERRED COMPENSATION PLAN Effective November 14,1983, the City added a self-directed 457 Deferred Compensation Plan to its employee benefit options. The plan is administered by Mission Square. The assets are held in the name of each participant with the Mission Square Retirement. Employees are eligible to make contributions to the plan not to exceed the ceiling set by federal regulations. The City later added an alternative investment option for the Deferred Compensation Plan with Nationwide Retirement Solutions. In May 1994, the City offered the 457 Deferred Compensation Plan to employees as their pension plan in lieu of participating in the General Employee Pension Plan. At that time, 41 employees opted out of the Defined Benefit Pension Plan and enrolled in the Deferred Compensation Plan. The ICMA 457 Deferred Compensation Plan has assets of $11,486,570 (market value) as of June 30, 2023, with 170 active employees contributing $144,205. The Nationwide plan has assets of $3,880,510 (market value) as of June 30, 2023, with 10 active employees contributing $9,469. Quarterly statements are mailed to each participant by the plan administrators. All administration fees are borne by the participants. All contributions are 100% vested upon election of the plan. Employees are eligible to withdraw or rollover to another plan upon separation of service. Withdrawals prior to age 59½ could be subject to penalty. Employees who participate in the defined benefit plan are also eligible for the 457 Deferred Compensation Plan. No matching employer contribution is made to the 457 Deferred Compensation Plan. As of June 30, 2023, there are 359 employees eligible to enroll in the 457 Deferred Compensation Plan. All amounts of compensation deferred under the plans, all property and rights purchased with those amounts, and all income attributable to those amounts, property or rights are (until paid or made available to the employee or other beneficiary) solely the property and rights of the individuals who 241 105

2023 Annual Comprehensive Financial Report for the City of Dover, Delaware Financial Section – Part C – Notes to the Basic Financial Statements Item 3. participate in the deferred compensation plan and are not subject to the claims of the City’s general creditors. RETIREMENT PLANS The City participates and/or manages four retirement plans on behalf of its employees. Three of which are defined benefit plans, and one is a defined contribution plan. Two of the defined benefit plans are closed to new hires. All full-time employees are required to enroll in a retirement plan. During fiscal year 2023, the total wages were $28.7 million. The number of employees eligible for pension benefits as of June 30, 2023, is 359. Following is the total of the City of Dover’s pension liabilities, pension assets, deferred outflows of resources and deferred inflows of resources related to pensions, and the pension expense and expenditures for the fiscal year ended June 30, 2023: 2023 Police General DPERS Total Pension Net Position $ 15,053,250 $ 52,956,675 N/A $ 68,009,925 Pension Liabilities 16,807,646 72,744,686 N/A 89,552,332 Net Pension (Liabilities)/Asset (1,754,396) (19,788,011) $ 865,783 (20,676,624) Deferred Outflows of Resources 1,031,969 5,445,082 4,443,242 10,920,293 Deferred Inflows of Resources - - (2,355,303) (2,355,303) Pension Expense 59,172 5,065,048 1,235,836 6,360,056 A. Defined Contribution Plan Effective July 1, 2000, the City implemented an IRC 401a Money Purchase Plan “401a Plan,” a self-directed defined contribution plan, as an alternative for pension benefits. The contribution and funding requirements of the plan are both established and amended by the City. The plan is administered by the MissionSquare Retirement Corporation. The assets are held in the name of each participant with the MissionSquare Retirement Trust. Quarterly statements are mailed to each participant by MissionSquare. All administration fees are borne by the participants. The Dover Organization of Employees (DOE) union contract renewed effective July 1, 2021, through June 30, 2024. The contract’s mandatory minimum employee contribution (MMEC) as well as the City’s minimum matching contribution was unchanged and is as follows: Effective Date Minimum Employee Contribution City’s Match (Up to) March 27, 2016 4% 7% July 1, 2016 5% 8% July 1, 2017 6% 9% All other employees, except for FOP members, must contribute 3% of pensionable wages into the 401a Plan. The City matches the 3% contribution into the 401a Plan. The City provides an additional dollar-for- 242 106

2023 Annual Comprehensive Financial Report for the City of Dover, Delaware Financial Section – Part C – Notes to the Basic Financial Statements Item 3. dollar match into the 401a Plan if the employee contributes to their 457 Plan, up to a maximum of 3% for a total matching contribution not to exceed 6%. (See note 17 – Deferred Compensation Plan). The 401a Plan and 457 Plan contributions are calculated on base wages plus on-call pay and pay adjustments. All full-time regular employees are eligible, excluding law enforcement personnel. Personnel that have elected the defined contribution plan are not eligible for the defined benefit plan. All contributions are 100% vested upon election of the plan. To be eligible for benefit payments, the participant must meet the same eligibility requirements as the participants in the defined benefit plan. Employees are eligible to withdraw or rollover to another plan the employer and employee benefits upon separation of service. Withdrawals prior to age 59 ½ could be subject to penalty. As of June 30, 2023, there were 219 full-time employees enrolled in the 401a plan. The City contributed a total of $611,176 on wages of approximately $9.8 million. Employees contributed $405,407 to the 401a Money Purchase Plan. The market value of the 401a plan assets totaled $11,173,169 as of June 30, 2023. B. Defined Benefit Plans The City participates in three defined benefit pension plans: City of Dover Police Pension Plan (closed), City of Dover General Employee Pension Plan (closed), and State of Delaware County and Municipal Police Pension Plan. The City of Dover Police Pension Plan, a single employer defined benefit plan, covers all uniformed police officers hired prior to September 1, 1982. The City of Dover General Employee Pension Plan, a single employer defined benefit plan, covers all eligible full-time permanent employees, other than uniformed police officers. The State of Delaware County and Municipal Police Pension Plan, a multi- employer cost sharing defined benefit plan, covers all uniformed police officers hired on or after September 1, 1982. The City makes employer contributions to all three plans. The City holds on-behalf of the Pension Boards of Trustees, the assets of the two single employer defined benefit plans and, accordingly, is required to prepare pension trust fund financial statements using the accrual basis of accounting. Investments are reported at fair value based on quoted market prices. Receivables and payables represent year end accruals of short-term receipts or charges. The administration of plan assets for both the Police Pension Plan and the General Employee Pension Plan is conducted by the Pension Boards as described in the subsequent disclosures. Separate pension fund financial statements for the City Police Pension and General Employees’ Pension Plan have not been issued; accordingly, they are presented separately, as follows: 243 107

2023 Annual Comprehensive Financial Report for the City of Dover, Delaware Financial Section – Part C – Notes to the Basic Financial Statements Item 3. The City of Dover, Delaware Combining Schedule of Pension Trust Fund Net Position For the Year Ended June 30, 2023 Police General Pension Pension Totals Assets: Cash and cash equivalents $ 2,368,198 $ 8,019,966 $ 10,388,164 Investments at fair value - Mutual Funds 12,685,052 44,936,709 57,621,761 Total Assets 15,053,250 52,956,675 68,009,925 Liabilities: Accounts Payable - - - Net position held in trust for pension benefits $ 15,053,250 $ 52,956,675 $ 68,009,925 The City of Dover, Delaware Combining Schedule of Changes in Pension Trust Fund Net Position For the Year Ended June 30, 2023 Police General Pension Pension Totals Additions Net investment income $ 989,896 $ 3,860,369 $ 4,850,265 City's contribution - payroll based - 4,348,625 4,348,625 City's contribution - lump sum - 1,000,000 1,000,000 Employee contribution - 209,416 209,416 State grants 765,608 - 765,608 Other 5,217 - 5,217 Total Additions to Net Position 1,760,721 9,418,410 11,179,131 Deductions Benefit payments 1,506,847 4,522,211 6,029,058 General administration 4,370 16,341 20,711 Total Deductions From Net Position 1,511,217 4,538,552 6,049,769 Change in net position 249,504 4,879,858 5,129,362 Net Position - Beginning 14,803,746 48,076,817 62,880,563 Net Position - Ending $ 15,053,250 $ 52,956,675 $ 68,009,925 Plan member contributions are recognized in the period in which the contributions are due. Employer contributions to each plan are recognized when due, pursuant to formal commitments, to provide contributions. Benefits or refunds are recognized when due and payable in accordance with the terms of 244 108

2023 Annual Comprehensive Financial Report for the City of Dover, Delaware Financial Section – Part C – Notes to the Basic Financial Statements Item 3. each plan. Investment management and consultant fees are paid from the Pension Trust Funds. All actuarial costs are paid from other City funds. 1. City of Dover Police Pension Plan Plan Description This contributory pension plan began on January 1, 1970, under the authority of the City Code, Chapter 62, Article III, Pension Plan, Section 62-71 through 62-84. The contribution and funding requirements of the plan are established by the City and may be amended by the City Council. It is a closed plan. The last active employee retired June 29, 2006. An officer’s pension right is vested upon the completion of 15 years of continuous service. As of June 30, 2023, there are 43 retirees and beneficiaries receiving benefits. Fully vested employees who have completed 20 to 25 years of continuous service are entitled to annual benefits equal to 2.5% of their average earnings for each year of continuous service. The maximum benefit is 62.5% of average earnings. If a participant terminates after completing 15 years of service, the participant will be eligible for a deferred benefit commencing at age 60 with a benefit accrued at the date of termination. In place of this vesting, participants may elect to receive their accumulated contributions. Disability benefits are paid to a participant who is totally or partially disabled in the performance of his or her duties. The total duty-connected disability benefit is payable monthly and equal to 75% of the monthly rate of earning at the time of disability. The partial duty-connected disability benefit is the accrued benefit at the date of disability if not less than 50% of average earnings. Disability benefits cease if the participant recovers or dies. If the disabled participant reaches his normal retirement date, the benefit is reduced by one-third. Survivor’s benefits are payable monthly in an amount equal to 75% of the participant’s rate of earnings, for a duty related death. Survivor’s benefits are payable monthly in an amount not to exceed 25% of the participant’s rate of earnings, for a non-duty related death, if the participant has completed 10 years of service. If a retired participant dies, his or her spouse receives 50% of the benefit. All benefits under the plan, including survivor’s benefits, are increased 2% per annum. There have been no changes in benefits during the valuation period by City Council. Plan Administration Management of the plan investments are fully vested with the City of Dover Police Pension Board as established in the City Code, which consists of seven members – three elected by plan members, two Council members appointed by the Council President, the Chief of Police, and the City Manager. The City Controller/Treasurer serves as an ex-officio member. Milliman of Albany, New York provides asset management advisory and consulting services to the Board. Funding Policy The City intends to continue to fund the Actuarially Determined Contribution (ADC) as provided for in the actuarial valuation. The funding may be impacted by differences in actual experience and the actuarial assumptions. The employer contributions are considered by the actuaries in their determination of the ADC. 245 109

2023 Annual Comprehensive Financial Report for the City of Dover, Delaware Financial Section – Part C – Notes to the Basic Financial Statements Item 3. The State contributes to the pension fund on behalf of the City based on 1) an allocation to the City based on a 0.25% surcharge on insurance policies issued in the state and the number of officers employed and 2) 75% matching grant for the annual cost of living increase (COLA) granted to police retirees on January 1 each year. For the fiscal year ending June 30, 2023, the State contributed $765,607. The ADC conforms to the entry age method as defined in GASB Statement No. 67/68. The City has interim valuations completed each year between the required biennial valuations to monitor the funding progress. The City’s actuary is Bolton of Towson, MD. The ADC is being amortized using the Entry Age method. Total contributions to the plan for the fiscal year ending June 30, 2023, were $0.8 million. The ADC is based on a closed 10-year level dollar amortization of the Unfunded Actuarial Accrued Liability (UAAL). The Schedule of Changes in the Net Pension Liability, and a Schedule of Employer Contributions are presented as Required Supplementary Information (RSI) following the notes to the financial statements. Net Pension Liability The total pension liability was determined by an actuarial valuation as of July 1, 2022, with liabilities rolled forward to June 30, 2023. As of June 30, 2023, the plan was 89.56% funded. The total pension liability for benefits was $16.8 million, and the fiduciary net position was $15.0 million, which resulted in a net pension liability (NPL) of $1.8 million for the primary government. There are no active officers; therefore, there is no covered payroll or ratio of the net pension liability to cover payroll. Key methods and assumptions used in calculating the total pension liability in the latest actuarial valuation, are presented below: Rate of return. For the year ended June 30, 2023, the annual money-weighted rate of return on investments, net of investment expense, was 7.97%. The money-weighted rate of return expresses investment performance, net of investment expense, adjusted for the changing amounts invested. 246 110

2023 Annual Comprehensive Financial Report for the City of Dover, Delaware Financial Section – Part C – Notes to the Basic Financial Statements Item 3. Actuarial Methods and Significant Assumptions Valuation date June 30, 2023 Actuarial cost method Entry Age Amortization method Level Dollar Remaining amortization period N/A; plan projected to be in surplus position as of July 1, 2022 Asset valuation method Market Value Actuarial assumptions: Inflation 2.5% Salary Increases N/A COLA for members in receipt of benefits 2.00% Investment rate of return 6.5%, net of pension plan investment expense, including inflation Retirement age N/A Mortality: Healthy retirees: Pub-2010 Safety Retirees Amount-Weighted Mortality Table with generational projection from the 2010 base year using Scale MP- 2020 Disabled retirees: Pub-2010 Safety Disabled Retirees Amount-Weighted Mortality Table with generational projection from the 2010 base year using Scale MP-2020 Beneficiaries: Pub-2010 Contingent Survivors Amount-Weighted Mortality Table with generational projection from the 2010 base year using Scale MP-2020 Changes in Actuarial Assumptions or Methods The long term expected rate of return on pension plan investments was determined using a building block method in which expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. These expected future real rates of return are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. 247 111

2023 Annual Comprehensive Financial Report for the City of Dover, Delaware Financial Section – Part C – Notes to the Basic Financial Statements Item 3. Best estimates of arithmetic real rates of return for each major asset class included in the pension plan’s target asset allocation as of June 30, 2023, are summarized in the following table: Police Pension Fund Long-Term Expected Rate of Return Long-Term Target Expected Real Asset Class Allocation Rate of Return US Cash 7.0% 0.68% US Short (1-3 Yr) Government/Credit Bonds 6.0% 1.39% US Interm (1-10 Yr) BBB Corporate Bonds4.0% 2.92% US TIPS (Inflation-Indexed Bonds) 7.0% 1.71% US Interm (1-10 Yr) Government/Credit Bonds 5.0% 1.77% US Long (11-30 Yr) BBB Corporate Bonds2.5% 3.54% US Long (11-30 Yr) Government/Credit Bonds 2.5% 2.73% US High Yield Bonds 6.0% 3.93% US Long STRIPS (20+ Yrs) 0.0% 4.25% US Broad Value Equity 7.0% 4.46% US Broad Growth Equity 3.5% 4.74% US Large & Mid Cap Growth Equity 3.5% 4.64% US Mid Cap Equity 3.5% 5.20% US Mid Cap Value Equity 3.5% 4.75% US Small Cap Value Equity 2.0% 5.74% US Small Cap Growth Equity 3.0% 6.78% Global REITs 3.0% 7.02% Police Pension Fund Changes in Net Pension Liability Increase Total (Decrease) Pension Plan Fiduciary Net Pension Liability Net Position Liability (a) (b) (a) - (b) Balances as of June 30, 2022 $ 17,552,192 $ 14,803,746 $ 2,748,446 Changes for the year: Service cost - - - Interest on total pension liability 1,091,919 - 1,091,919 Differences between expected and actual experience (329,618) - (329,618) Changes of assumptions - - - Benefit payments (1,506,847) (1,506,847) - Employer contributions - 770,825 (770,825) Net investment income - 989,896 (989,896) Administrative expenses - (4,370) 4,370 Net Changes (744,546) 249,504 (994,050) Balances as of June 30, 2023 $ 16,807,646 $ 15,053,250 $ 1,754,396 248 112

2023 Annual Comprehensive Financial Report for the City of Dover, Delaware Financial Section – Part C – Notes to the Basic Financial Statements Item 3. Discount Rate The discount rate used to measure the total pension liability was 6.5%. The projection of cash flows used to determine the discount rate assumed that plan member contributions will be made at the current contribution rate and that contributions will be made at rates equal to the difference between actuarially determined contribution rates and the member rate. Based on those assumptions, the pension plan’s fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability. Sensitivity Analysis of Net Pension Liability to Changes in the Discount Rate The following presents the net pension liability, calculated using the discount rate of 6.50%, as well as what the City’s net pension liability would be if it were calculated using a discount rate that is 1 percentage point lower (5.50%) or 1 percentage point higher (7.50%) than the current rate. Police Pension Fund 1% Current 1% Decrease Discount Rate Increase 5.50% 6.50% 7.50% Net pension liability $ 3,224,351 $ 1,754,396 $ 483,015 Pension Expense, Deferred Outflows/Inflows of Resources Related to Pensions For the year ended June 30, 2023, the City recognized pension credit of $59,172 calculated in the following chart: Police Pension Expense July 1, 2022 to June 30, 2023 Interest on total pension liability $ 1,091,919 Differences between expected and actual experience (329,618) Projected earnings on pension plan investments (938,180) Differences between expected and actual earnings on plan investments 230,681 Pension plan administrative expense 4,370 Total Pension Expense $ 59,172 As of June 30, 2023, the City reported deferred outflows/(inflows) of resources related to pension from the following sources: Police Pension Plan Total Deferred Outflows of Resources $ 1,031,969 249 113

2023 Annual Comprehensive Financial Report for the City of Dover, Delaware Financial Section – Part C – Notes to the Basic Financial Statements Item 3. Amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows: Police Pension Plan Fiscal Year Ending June 30: 2024 $ 216,646 2025 121,923 2026 703,744 2027 (10,344) 2. City of Dover General Employee Pension Plan Plan Description The City of Dover General Employee Pension Plan started on July 1, 1967, under the authority of the City Council, Municipal Code, Chapter 2, Article IV, Division 7, General Employee Pension Plan, Sections 2-321 through 2-370, and was made contributory on July 1, 1983. Employees contribute 3.5% of gross salary, exclusive of unscheduled overtime. An employee’s pension right is vested upon completion of 10 years of continuous service. As of the valuation date, June 30, 2023, the General Employee Pension Plan is comprised of the following: Retired and beneficiaries currently receiving benefits: 218 Active employees: Fully vested 70 Deferred vested 16 The percentage of covered payroll which employees contribute is stated in the City Code and is considered by the actuaries in their determination of the actuarial determined contribution for service cost. For the year ended June 30, 2023, gross payroll earnings of $5.7 million were reported to and covered by this plan. An employee hired before May 1, 1994 is eligible for normal retirement benefits under this plan, when they attain the age of 65 with 10 years of continuous service. This same employee is eligible for early retirement when he/she attains the age of 50 with 20 years of continuous service or has completed 25 years of service. Employees hired on or after May 1, 1994 who attained age 55 and whose attained age plus years of continuous service is equal to or greater than 80 are eligible for early-unreduced retirement benefits under this plan. The monthly benefits are 1/50 of the average actual monthly earnings multiplied by years and months of credited service upon retirement (highest 36 consecutive months in his/her final 10 years of continuous service). The monthly benefit shall not be less than $200 per month. Benefits are paid for the lifetime of the participant. Upon the death of the participant, 50% of the payments to which the participant was or would have been entitled shall be made to their eligible survivor. An employee may also take an early-reduced retirement on any date following the attainment of age 55 and the completion of 10 years of continuous service. However, the early retirement benefit is calculated 250 114

2023 Annual Comprehensive Financial Report for the City of Dover, Delaware Financial Section – Part C – Notes to the Basic Financial Statements Item 3. in the same manner as the normal retirement benefit, at a reduced rate of one-half percent for each month computed from the date of early retirement to age 65 years. If an employee terminated before becoming vested in the plan, they are eligible to withdraw this total contribution with interest compounded annually. Survivor's benefits are payable to eligible survivors of a participant who dies after completing 10 years of continuous service. The amount of the death benefit is equal to 50% of the retirement benefit the participant would have received had he retired the day before he died. The benefit is calculated using the normal retirement benefit formula and service at date of termination. Effective September 29, 2009, the City Council voted to close the General Employees’ Pension plan to new hires. There have been no changes in benefits during the valuation period by City Council. Plan Administration Management of the plan investments are fully vested with the City of Dover Employees’ Pension Board as established in the City Code, which consists of three elected by plan members, two Council members appointed by the Council President, the City Controller/Treasurer, and the City Manager. Milliman of Albany, New York provides asset management advisory and consulting services to the Board. Funding Policy The City intends to fund the actuarial determined contributions (ADC) as provided for in the actuarial valuation. The City uses the percentage of payroll determined by the actuary for its contributions. The funding may be impacted by differences in actual experience and the actuarial assumptions. The employer contributions are considered by the actuaries in their determination of the actuarial determined contribution. The City makes payroll-based contributions for active members in the plan. The Actuarially Determined Contribution is based on a closed 15-year level dollar amortization of the Unfunded Actuarial Accrued Liability (UAAL). The Schedule of Changes in the Net Pension Liability, and a Schedule of Employer Contributions are presented as Required Supplementary Information (RSI) following the notes to the financial statements. Net Pension Liability The total pension liability was determined by an actuarial valuation as of July 1, 2022, with liabilities rolled forward to the June 30, 2023 measurement date. As of June 30, 2023, the plan was 72.8% funded. The total pension liability for benefits was $72.7 million, and the fiduciary net position was $52.9 million, which resulted in a net pension liability (NPL) of $19.8 million for the primary government. The covered payroll (annual payroll of active employees covered by the plan) was $5.7 million and the ratio of the NPL to the covered payroll was 349.32%. Rate of return. For the year ended June 30, 2023, the annual money-weighted rate of return on investments, net of investment expense, was 8.57%. The money-weighted rate of return expresses investment performance, net of investment expense, adjusted for the changing amounts invested. Key methods and assumptions used in calculating the total pension liability are presented in the following chart: 251 115

2023 Annual Comprehensive Financial Report for the City of Dover, Delaware Financial Section – Part C – Notes to the Basic Financial Statements Item 3. Methods and assumptions used to determine total pension liability: Valuation date July 1, 2022 rolled forward to June 30, 2023 Actuarial cost method Entry Age Method Asset valuation method Fair Market Value of assets on the measurement date Interest Rates: Discount Rate 6.5% Investment rate of return 6.5%, net of pension plan investment expense, including inflation Municipal Bond Rate N/A Inflation 2.35% Annual Pay Increases 3.0% Measurement Date June 30, 2022 Participant Data Collected as of July 1, 2021 Cost of Living Increases None Mortality Pub-2010 General Employees Amount-Weighted Mortality Table with -Pre-retirement: generational projection from the 2010 base year using Scale MP-2021 Pub-2010 General Retirees Amount-Weighted Mortality Table with -Healthy retirees: generational projection from the 2010 base year using Scale MP-2021 Pub-2010 General Disabled Retirees Amount-Weighted Mortality Table with generational projection from the 2010 base year using Scale MP- -Disabled retirees: 2021 Pub-2010 Contingent Survivors Amount-Weighted Mortality Table with -Beneficiaries: generational projection from the 2010 base year using Scale MP-2021 Changes in Actuarial Assumptions or Methods The long-term expected rate of return on pension plan investments was determined using a building block method in which expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. These expected future real rates of return are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. Best estimates of arithmetic real rates of return for each major asset class included in the pension plan’s target asset allocation as of June 30, 2023 are summarized in the following table: General Employee Pension Plan Long-Term Expected Rate of Return Long-Term Target Expected Real Asset Class Allocation Rate of Return US Cash 6.0% 0.68% US Short (1-3 Yr) Government/Credit Bonds 5.0% 1.39% US Interm (1-10 Yr) BBB Corporate Bonds 4.0% 2.92% US TIPS (Inflation-Indexed Bonds) 6.0% 1.71% US Interm (1-10 Yr) Government/Credit Bonds 4.0% 1.77% US Long (11-30 Yr) BBB Corporate Bonds 2.5% 3.54% US Long (11-30 Yr) Government/Credit Bonds 2.5% 2.73% US High Yield Bonds 5.0% 3.93% US Long STRIPS (20+ Yrs) 0.0% 4.25% US Broad Value Equity 7.0% 4.46% US Broad Growth Equity 4.5% 4.74% US Large & Mid Cap Growth Equity 4.5% 4.64% US Mid Cap Equity 4.0% 5.20% 252 116

2023 Annual Comprehensive Financial Report for the City of Dover, Delaware Financial Section – Part C – Notes to the Basic Financial Statements Item 3. General Employee Pension Fund Changes in Net Pension Liability Increase Total (Decrease) Pension Plan Fiduciary Net Pension Liability Net Position Liability (a) (b) (a) - (b) Balances at June 30, 2022 $ 67,018,229 $ 48,076,817 $ 18,941,412 Changes for the year: Service cost 476,900 - 476,900 Interest 4,209,213 - 4,209,213 Changes of benefit terms - - - Differences between expected and actual experience 5,562,555 - 5,562,555 Changes of assumptions - - - Contributions - employer - 5,348,625 (5,348,625) Contributions - member - 209,416 (209,416) Net investment income - 3,860,369 (3,860,369) Benefit payments, including refunds of member contributions (4,522,211) (4,522,211) - Administrative expense - (16,341) 16,341 Other - Net Changes 5,726,457 4,879,858 846,599 Balances as of June 30, 2022 $ 72,744,686 $ 52,956,675 $ 19,788,011 Discount Rate The discount rate used to measure the total pension liability was 6.5%. The projection of cash flows used to determine the discount rate assumed that plan member contributions will be made at the current contribution rate and that contributions will be made at rates equal to the difference between actuarially determined contribution rates and the member rate. Based on those assumptions, the pension plan’s fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability. Sensitivity Analysis of Net Pension Liability to Changes in the Discount Rate The following presents the net pension liability, calculated using the discount rate of 6.50%, as well as what the net pension liability would be if it were calculated using a discount rate that is 1 percentage point lower (5.50%) or 1 percentage point higher (7.50%) than the current rate. General Employee Pension Fund 1% Current 1% Decrease Discount Rate Increase 5.50% 6.50% 7.50% Net pension liability $ 28,425,043 $ 19,788,011 $ 12,587,559 253 117

2023 Annual Comprehensive Financial Report for the City of Dover, Delaware Financial Section – Part C – Notes to the Basic Financial Statements Item 3. Pension Expense, Deferred Outflows/Inflows of Resources Related to Pensions For the year ended June 30, 2023, the City recognized pension expense of $5,065,048 as calculated in the following chart: General Employee Pension Expense July 1, 2022 to June 30, 2023 Service cost $ 476,900 Interest on the total pension liability 4,209,213 Changes of benefit terms - Differences between expected and actual experience 3,220,505 Changes of assumptions 56,435 Employee contributions (209,416) Projected earnings on pension plan investments (3,158,126) Differences between expected and actual earnings on plan investments 453,196 Pension plan administrative expense 16,341 Other changes in fiduciary net position - Total Pension Expense $ 5,065,048 As of June 30, 2023, the City reported deferred outflows/(inflows) of resources related to pension from the following sources: General Employee Pension Plan Deferred Outflows of Resources Differences between expected and actual experience $ 2,781,277 Net difference between projected and actual earnings on pension plan investments 2,663,805 $ 5,445,082 Amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows: General Employee Pension Plan Fiscal Year Ending June 30: 2024 $ 3,234,745 2025 191,138 2026 2,159,646 2027 (140,447) 254 118

2023 Annual Comprehensive Financial Report for the City of Dover, Delaware Financial Section – Part C – Notes to the Basic Financial Statements Item 3. 3. Delaware Public Employee Retirement System - County and Municipal Police and Firefighters’ Pension Plan Plan Description and Contribution Information The City participates in the “County and Municipal Police and Firefighters’ Pension Plan” (the Plan) a cost sharing multiple-employer defined-benefit plan established in the Delaware code. The City’s uniformed police officers whose employment with the City started on or after September 1, 1982 under the authority of the City Code, Chapter 62, Article III, Pension Plan, Section 62-71 can participate in this plan. The General Assembly is responsible for setting benefits, contributions and amending plan provisions; administrative rules and regulations are adopted and maintained by the Board of Pension Trustees (the Board). The management of the Plan is the responsibility of the Board. The Board is comprised of five members appointed by the Governor and confirmed by the State Senate, plus two ex-officio members. The daily operation is the responsibility of the Office of Pensions. Although most of the assets of the plan are commingled with other Plans for investment purposes, the Plan’s assets may be used only for the payment of benefits to the members of the Plan in accordance with the terms of the Plan. The Plan’s service benefits calculation is 2.5% of final average monthly compensation multiplied by years of credited service up to 20 years, plus 3.5% of final average monthly compensation multiplied by years of service more than 20 years. For this plan, final average monthly compensation is the monthly average of the highest three consecutive years of compensation. Vesting is at five years of credited service. As of June 30, 2023, city membership in this plan is comprised of the following: Retired and beneficiaries currently receiving benefits 83 Active employees: Fully vested 5 years 75 Non-Vested 34 The following are brief descriptions of the Plan. For a more complete description, please refer to the Delaware Public Employees’ Retirement System CAFR on the web at: https://open.omb.delaware.gov/FinancialReports/financials/FY21AnnualReport.pdf. Retirement Age 62 with 5 years of service; age plus credited service (but not less than 10 years) equals 75; or 20 years of credited service. Disability Benefits Duty – Total Disability – 75% of final average compensation plus 10% for each dependent not to exceed 25% for all dependents. Duty – Partial Disability – Calculated the same as Service Benefits, subject to minimum 50% of final average compensation. Non-Duty – Same as Service Benefits, total disability subject to a minimum 50% of final average monthly compensation plus 5% of each dependent not to exceed 20% for all dependents. Partial disability is subject to a minimum of 30% of final average monthly compensation. 255 119

2023 Annual Comprehensive Financial Report for the City of Dover, Delaware Financial Section – Part C – Notes to the Basic Financial Statements Item 3. Survivor Benefits If employee is receiving a pension, then eligible survivor receives 50% of pension; if employee is active, eligible survivor receives 75% of pension the employee would have received at age 62. If the member is killed in the line of duty, the eligible survivor receives 75% of the member’s compensation. Contributions: Employer – Determined by Board of Pension Trustees. Employer contributions were 16.59%, 16.03%, and 16.84% of earnings for the Fiscal Year 2023, 2022 and 2021, respectively. The City’s contributions to the plan for years ended June 30, 2023, 2022 and 2021 were $1,008,343, $1,373,957, and $1,312,381, respectively, and were equal to the required contributions for each year. Total eligible full-time wages covered by the State plan were $8.6 million this fiscal year. Member – 7% of compensation. Basis of Presentation The DPERS financial statements are prepared on the accrual basis of accounting, whereby expenses are recorded when the liability is incurred, revenues are recorded in the accounting period in which they are earned and become measurable, and investment purchases and sales are recorded as of the related trade date. Plan member contributions are recognized in the period in which contributions are due. Employer contributions are recognized when due and the employer has a legal requirement to provide contributions. Benefits and refunds are recognized when due and payable in accordance with the terms of the plan. For purposes of measuring the net pension liability, deferred outflows of resources and deferred inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the DPERS Plan and additions to/deductions from DPERS’s fiduciary net position have been determined on the same basis as they are reported by DPERS. Employer Allocation Percentage Methodology The amounts assigned to each employer in the Schedule of Pension Amounts by Employer is each employer’s proportional share of the net pension liability, deferred outflows of resources, deferred inflows of resources, and pension expense (the Collective Pension Amounts) determined in accordance with Governmental Accounting Standards Board No. 68, Accounting and Financial Reporting for Pensions (GASB 68). Management has elected to allocate the employer’s proportionate shares of the collective pension amounts based on the percentage of actual employer contributions as documented in the Schedule of Employer Allocations. The City’s proportionate share percentage is 8.2346% for the current fiscal year, 8.1574% for the prior year and the change is a increase of 0.0772%. Pension Liabilities, Pension Expense and Deferred Outflows of Resources and Deferred Inflows of Resources related to Pensions On June 30, 2023, the City reported a net pension asset of $865,783 for its proportionate share of the collective net pension asset. The net pension asset was measured as of June 30, 2021, and the total pension asset used to calculate the net pension asset was determined by an actuarial valuation as of June 30, 2021, with update procedures used to roll forward the pension liability to June 30, 2022. The City’s proportion of the net pension asset was based on the percentage of actual employer contributions. The City recognized pension expense of $1,323,362 for the year ended June 30, 2023, associated with membership within the Delaware State Police Pension Plan. As of June 30, 2023, the City reported 256 120

2023 Annual Comprehensive Financial Report for the City of Dover, Delaware Financial Section – Part C – Notes to the Basic Financial Statements Item 3. deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: County and Municipal Police & Firefighter's Pension Plan Deferred Outflows of Resources Differences between expected and actual experience $ 1,472,564 Change in proportion 19,667 Changes of assumptions 513,434 Net differences between projected and actual earnings 1,434,491 City contributions subsequent to the measurement date 1,003,086 Total Deferred Outflows of Resources $ 4,443,242 Deferred Inflows of Resources Differences between expected and actual experience $ (359,968) Changes in assumptions (907,961) Net difference between actual and expected earnings - Change in proportion (87,374) Total Deferred Inflows of Resources $ (1,355,303) The City’s contributions of $1,003,086 are subsequent to the measurement date and therefore are reported as deferred outflows of resources and will be recognized as an increase of the net pension asset in the year ending June 30, 2023. Amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows: County and Municipal Police & Firefighter's Pension Plan Fiscal Year Ending June 30: 2024 $ (86,295) 2025 (220,519) 2026 (32,276) 2027 2,293,175 2028 114,875 Thereafter 15,893 The proportionate share of the total pension liability for the June 30, 2022, measurement date was determined by an actuarial valuation as of June 30, 2021, with update procedures used to roll forward the total pension liability to June 30, 2022. These actuarial valuations used the following actuarial assumptions: 257 121

2023 Annual Comprehensive Financial Report for the City of Dover, Delaware Financial Section – Part C – Notes to the Basic Financial Statements Item 3. Actuarial Assumptions Investment rate of return/Discount rate 1 7.0% Projected salary increases1 2.5% & Merit Cost-of-living adjustments 0.0% (1) Inflation is included at 2.5% The total pension liabilities are measured based on assumptions pertaining to the interest rates, inflation rates, and employee demographic behavior in future years. It is likely that future experience will not exactly conform to these assumptions. To the extent that actual experience deviates from these assumptions, the emerging liabilities may be higher or lower than anticipated. The more the experience deviates, the larger the impact on future financial statements. Mortality assumptions are based on the PUB 2010 tables with gender adjustments for healthy annuitants and disabled retirees and an adjusted version on MP-2020 mortality improvement scale on a fully generational basis. Projected benefit payments do not include the effects of projected ad hoc cost-of-living adjustments (ad hoc COLAs) as they are not substantively automatic. The primary considerations relevant to making this determination include the historical pattern of granting the changes and the consistency in the amounts of the changes. The long-term expected rate of return on pension plan investments was determined using a building-block method in which best-estimate ranges of expected future real rates of return (expected returns, net of investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by an asset allocation percentage, which is based on the nature and mix of current and expected plan investments, and by adding expected inflation. Best estimates of geometric real rates of return for each major asset class included in the Plan’s current and expected asset allocation are summarized in the following table: County and Municipal Police & Firefighter's Pension Plan Long-Term Expected Rate of Return Long-Term Expected Real Asset Rate of Return Allocation Asset class: Domestic equity 5.7% 31.8% International equity 5.7 15.0 Fixed income 2.0 23.6 Alternative investments 7.8 21.5 Cash and equivalents - 8.1 Discount Rate The discount rate for all plans used to measure the total pension liability was 7.0%. The projection of cash flows used to determine the discount rate assumed that contributions from plan members will be made at the current contribution rates and that contributions from employers will be made at rates determined by the Board of Pension Trustees, actuarially determined. Based on those assumptions, the pension plans’ fiduciary net position was projected to be available to make all projected future benefit payments of 258 122

2023 Annual Comprehensive Financial Report for the City of Dover, Delaware Financial Section – Part C – Notes to the Basic Financial Statements Item 3. current plan members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability. Sensitivity Analysis of Net Pension Liability to Changes in the Discount Rate The following presents the City’s proportionate share of the net pension liability (asset) of the Plan, calculated using the discount rate of 7.0%, as well as what the Plans’ net pension liability (asset) would be if it were calculated using a discount rate that is one-percentage-point lower or one-percentage-point higher than the current rate (dollar values expressed in thousands): County and Municipal Police & Firefighter's Pension Plan (dollar amounts expressed in thousands) 1% Current 1% Decrease Discount Rate Increase 6.00% 7.00% 8.00% Proportionate share of the net pension liability (asset) $ 5,761 $ (866) $ (6,265) Separately issued financial statements for DPERS are available from the pension office at: McArdle Building, Suite 1 860 Silver Lake Blvd Dover, DE 19904 Or at the following web address: www.delawarepensions.com 259 123

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2023 Annual Comprehensive Financial Report for the City of Dover, Delaware Financial Section Item 3. PART D REQUIRED SUPPLEMENTARY INFORMATION 261 125

2023 Annual Comprehensive Financial Report for the City of Dover, Delaware Financial Section – Part D – Required Supplementary Information Item 3. SERVICES TO OUR RESIDENTS AND CUSTOMERS Animal Control Leaf Collection Beautification Building Library Bulky Trash Collection Parks & Recreation Community Planning & Zoning Development/Housing Police Protection Community Policing Elections Snow Removal Electricity Stormwater Economic Development Street Maintenance/Cleaning Emergency Preparedness Trash Collection Fire Protection Tree Maintenance Inspections & Code Enforcement Water & Wastewater 262 126

2023 Annual Comprehensive Financial Report for the City of Dover, Delaware Financial Section – Part D – Required Supplementary Information Item 3. CITY OF DOVER, DELAWARE GENERAL FUND Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual (Non-GAAP Basis) For the Year Ended June 30, 2023 VARIANCE ORIGINAL FINAL POSITIVE BUDGET BUDGET ACTUAL (NEGATIVE) Beginning Balance $ 10,077,500 $ 13,219,100 $ 13,219,081 $ (19) REVENUES: Fines & Police Revenue 546,800 539,700 651,468 111,768 Library Revenues 103,100 143,400 147,504 4,104 Kent County Book Reimbursement 200,000 431,700 431,806 106 Business Licenses 1,450,000 1,450,000 1,452,182 2,182 Permits and Other Fees 1,383,000 1,994,400 2,453,910 459,510 Miscellaneous Charges 83,300 96,500 105,072 8,572 Police Extra Duty Fees 240,000 240,000 469,521 229,521 Property Taxes 15,825,000 16,101,300 16,105,462 4,162 Recreation Revenue 129,000 134,000 148,177 14,177 Franchise Fees 600,000 600,000 562,434 (37,566) Sanitation Fees 3,564,200 3,564,200 3,652,779 88,579 Rent Revenue - Garrison Farm 110,000 110,000 113,315 3,315 Court of Chancery Fees 1,500,000 1,900,000 2,219,660 319,660 Investment Income 90,000 290,000 351,724 61,724 Interfund Service Receipts 6,181,400 6,181,400 6,123,476 (57,924) Grants: - Police Extra Duty 165,000 165,000 127,238 (37,762) Police Grants Fund 287,500 287,500 290,000 2,500 Police Pension Grant 500,000 620,000 765,607 145,607 Green Energy Grant 98,500 98,500 98,500 - Miscellaneous Federal Grant Revenue - 111,200 104,858 (6,342) Miscellaneous State Grant Revenue - 105,000 92,263 (12,737) Transfer from: Transfer Tax 1,800,000 2,300,000 2,334,876 34,876 Municipal Street Aid 750,000 794,000 796,793 2,793 Civil Traffic Penalties 400,000 70,000 54,507 (15,493) Water Fund 1,000,000 1,000,000 1,000,000 - Wastewater Fund 1,000,000 1,000,000 1,000,000 - Electric Fund 8,000,000 8,000,000 8,000,000 - ARPA Grant - - 0 - Total Revenues 46,006,800 48,327,800 49,653,132 1,325,332 TOTAL BEGINNING BALANCE & REVENUES $ 56,084,300 $ 61,546,900 $ 62,872,213 $ 1,325,313 (Continued) 263 127

2023 Annual Comprehensive Financial Report for the City of Dover, Delaware Financial Section – Part D – Required Supplementary Information Item 3. (Continued) VARIANCE ORIGINAL FINAL POSITIVE BUDGET BUDGET ACTUAL (NEGATIVE) EXPENDITURES: Tax Assessor $ - $ - $ - $ - Fire 724,000 741,200 759,257 (18,057) Library 1,916,500 1,957,800 1,884,419 73,381 Recreation 1,341,300 1,367,700 1,312,315 55,385 Life Safety 594,700 620,900 576,359 44,541 Code Enforcement 821,300 1,007,000 948,976 58,024 Planning 757,600 730,200 655,845 74,355 Inspections 758,200 789,900 802,430 (12,530) Police 19,206,200 19,512,800 18,762,136 750,664 Police Extra Duty 405,000 405,000 621,098 (216,098) Streets 674,800 598,400 542,928 55,472 Stormwater 864,900 819,000 591,429 227,571 Sanitation 2,801,100 2,865,100 2,505,873 359,227 Public Works - Engineering 188,700 207,100 231,172 (24,072) Allocated Expenditures: City Clerk 379,300 385,800 360,341 25,459 Council 256,800 251,800 224,532 27,268 Grounds Maintenance 1,611,100 1,637,000 1,595,655 41,345 City Manager 1,251,200 1,299,600 1,219,627 79,973 Information Technology 832,700 848,400 832,236 16,164 Finance 1,109,500 1,157,200 1,051,814 105,386 Public Works-Administration 541,800 571,100 562,156 8,944 Facilities Management 844,200 861,900 827,809 34,091 Procurement and Inventory 754,800 781,600 767,002 14,598 Fleet Maintenance 941,100 1,024,000 986,335 37,665 Customer Services 1,393,300 1,438,800 1,321,297 117,503 Human Resources 488,300 472,800 390,910 81,890 Mayor 234,400 224,500 203,142 21,358 Insurance 950,000 950,000 928,854 21,146 Contribution to Downtown Dover Partnership 150,000 150,000 150,000 - Subtotal 42,792,800 43,676,600 41,615,947 2,060,653 Appropriations: Bank & Credit Card Fees 36,000 36,000 29,302 6,698 Debt Service - Principal and Interest 630,000 630,000 629,440 560 Appropriation to the General Employee Pension Fund 1,000,000 1,000,000 1,000,000 - Transfer to Capital Fund for Projects 3,536,500 3,554,600 3,554,600 - Retirees Health Care 2,328,500 2,328,500 2,328,500 - Appropriation to Police Pension Fund 689,400 199,300 25,006 174,294 Transfer to Cable Franchise Reserve - - 9,164 (9,164) Transfer to Electric Fund (ERP) 25,000 25,000 25,000 - Appropriation to Police Pension Fund - State Grant 500,000 620,000 765,607 (145,607) Street Lights 810,000 810,000 832,139 (22,139) Total Expenditures 52,348,200 52,880,000 50,814,705 2,065,295 Budget Balance 3,736,100 8,666,900 12,057,508 (3,390,608) Total Budget Balance & Expenditures $ 56,084,300 $ 61,546,900 $ 62,872,213 $ (1,325,313) Budget Balance - Working Capital 12,057,508 Perspective and GAAP (Non-GAAP) Differences: Reserve for Encumbrances - Fair Value of Investment Adjustment (219,138) Deferred Revenues - Non-spendable (122,482) Inventory & Prepaids - Non-spendable (1,029,035) Unassigned Fund Balance $ 10,686,853 264 128

2023 Annual Comprehensive Financial Report for the City of Dover, Delaware Financial Section – Part D – Required Supplementary Information Item 3. Police Pension Fund Schedule of Changes in Net Pension Liability, Related Ratios (in Thousands) Fiscal Year Ending June 30, 2023 2022 2021 2020 2019 2018 2017 2016 2015 2014 Total Pension Liability Service cost $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - Interest 1,092 1,129 1,162 1,134 1,173 1,197 1,211 1,281 1,311 1,325 Differences between expected and actual experience (330) (246) - 206 (157) - - (836) 286 25 Changes of assumptions - 48 (134) 633 (88) (44) 116 - 932 - Benefit payments (1,507) (1,517) (1,534) (1,537) (1,517) (1,541) (1,528) (1,528) (1,557) (1,548) Net change in total pension liability (745) (586) (506) 436 (590) (388) (201) (1,083) 972 (198) Total pension liability, beginning 17,552 18,138 18,644 18,208 18,798 19,186 19,387 20,471 19,499 19,697 Total pension liability, ending (a) $ 16,808 $ 17,552 $ 18,138 $ 18,644 $ 18,208 $ 18,798 $ 19,186 $ 19,388 $ 20,471 $ 19,499 Fiduciary Net Position Contributions - employer $ 771 $ 1,287 $ 988 $ 1,033 $ 1,097 $ 1,295 $ 1,118 $ 1,093 $ 1,386 $ 1,229 Net investment income 990 (2,442) 3,816 439 820 908 1,433 279 283 1,583 Benefit payments, including refunds of member contr. (1,507) (1,517) (1,534) (1,537) (1,517) (1,541) (1,528) (1,528) (1,557) (1,548) Administrative expenses (4) (12) (7) (5) (5) (5) (4) (4) (6) (20) Net change in plan fiduciary net position 250 (2,684) 3,263 (70) 394 657 1,019 (160) 106 1,244 Fiduciary net position, beginning 14,804 17,488 14,225 14,295 13,900 13,243 12,225 12,385 12,279 11,035 Fiduciary net position, ending (b) 15,054 14,804 17,488 14,225 14,295 13,900 13,244 12,225 12,385 12,279 Net pension liability, ending = (a) - (b) $ 1,754 $ 2,748 $ 650 $ 4,419 $ 3,913 $ 4,898 $ 5,942 $ 7,163 $ 8,086 $ 7,220 Fiduciary net position as a % of total pension liability 89.56% 84.34% 96.42% 76.30% 78.51% 73.95% 69.03% 63.05% 60.50% 62.97% Covered payroll N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A Net pension liability as a % of covered payroll N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A 265 129

2023 Annual Comprehensive Financial Report for the City of Dover, Delaware Financial Section – Part D – Required Supplementary Information Item 3. Police Pension Fund Schedule of Employer Contributions Contribution as Fiscal Year Actuarially Actual Contribution a Percentage of Ended Determined Employer Deficiency Covered Covered June 30 Contribution Contribution (Excess) Payroll Payroll 2023 $ - $ 771 $ (771) $ - N/A 2022 1,115,164 1,287,062 (171,898) - N/A 2021 935,006 987,862 (52,856) - N/A 2020 964,518 1,033,149 (68,631) - N/A 2019 1,050,375 1,097,151 (46,776) - N/A 2018 1,205,092 1,294,750 (89,658) - N/A 2017 1,176,462 1,118,346 58,116 - N/A 2016 1,212,000 1,093,278 118,722 - N/A 2015 1,176,422 1,385,789 (209,367) - N/A 2014 1,155,110 1,229,363 (74,253) - N/A Police Pension Fund Schedule of Investment Returns (1) Fiscal year 2017 through 2023 Fiscal year ending June 30 2023 2022 2021 2020 2019 2018 2017 Money-weighted rate of return, net of investment expense 7.97% (15.21%) 29.77% 3.46% 6.43% 7.16% 12.34% (1) This schedule is presented to illustrate the requirement to show information for 10 years. However, information prior to June 30, 2017 is not available. 266 130

2023 Annual Comprehensive Financial Report for the City of Dover, Delaware Financial Section – Part D – Required Supplementary Information Item 3. The total pension liability was determined by an actuarial valuation as of June 30, 2023 with liabilities projected to the June 30, 2023 measurement date using the following actuarial assumptions, applied to all periods included in the measurement, unless otherwise specified. Any significant changes during this period have been reflected as prescribed by GASB 67 and 68. Actuarial Methods and Significant Assumptions Valuation date June 30, 2023 Actuarial cost method Entry Age Amortization method Level Dollar Remaining amortization period N/A; plan projected to be in surplus position as of July 1, 2022 Asset valuation method Market Value Actuarial assumptions: Inflation 2.5% Salary Increases N/A COLA for members in receipt of benefits 2.00% Investment rate of return 6.5%, net of pension plan investment expense, including inflation Retirement age N/A Mortality: Healthy retirees: Pub-2010 Safety Retirees Amount-Weighted Mortality Table with generational projection from the 2010 base year using Scale MP- 2020 Disabled retirees: Pub-2010 Safety Disabled Retirees Amount-Weighted Mortality Table with generational projection from the 2010 base year using Scale MP-2020 Beneficiaries: Pub-2010 Contingent Survivors Amount-Weighted Mortality Table with generational projection from the 2010 base year using Scale MP-2020 267 131

2023 Annual Comprehensive Financial Report for the City of Dover, Delaware Financial Section – Part D – Required Supplementary Information Item 3. General Employee Pension Fund Schedule of Changes in Net Pension Liability, Related Ratios (in Thousands) 2023 2022 2021 2020 2019 2018 2017 2016 2015 2014 Total Pension Liability Service cost $ 477 $ 395 $ 396 $ 395 $ 424 $ 406 $ 433 $ 401 $ 459 $ 484 Interest 4,209 4,169 4,178 3,991 3,989 3,827 3,729 3,719 3,861 3,810 Changes of benefit terms - - - - - - - - - - Differences between expected and actual experience 5,563 - - - - - - - - - Changes of assumptions - - - - - 830 - - - - Contributions - employer - 878 - 1,447 - 1,504 41 (267) (422) 111 Contributions - member - 113 (290) 1,260 (279) (99) 1,200 - 1,956 - Net investment income - Benefit payments, including refunds of member contr. (4,522) (4,561) (4,291) (4,120) (4,033) (3,976) (3,746) (3,718) (3,700) (3,654) Administrative expense - Other - Net changes 5,727 994 (7) 2,973 101 2,492 1,657 135 2,154 751 Total pension liability, beginning 67,018 66,024 66,031 63,058 62,957 60,465 58,808 58,673 56,519 55,768 Total pension liability, ending (a) $ 72,745 $ 67,018 $ 66,024 $ 66,031 $ 63,058 $ 62,957 $ 60,465 $ 58,808 $ 58,673 $ 56,519 Fiduciary Net Position Employer contributions $ 5,349 $ 4,482 $ 2,428 $ 2,606 $ 2,704 $ 4,777 $ 2,877 $ 3,090 $ 3,420 $ 3,473 Member contributions 209 171 173 183 190 195 202 202 209 212 Investment income net of investment expenses 3,860 (7,865) 12,706 1,550 2,765 2,757 4,351 850 955 4,153 Benefit payments (4,522) (4,561) (4,292) (4,120) (4,033) (3,976) (3,746) (3,718) (3,700) (3,654) Administrative expenses (16) (52) (21) (19) (19) (18) (18) (16) (19) (20) Net change in plan fiduciary net position 4,880 (7,825) 10,994 200 1,607 3,735 3,666 408 865 4,164 Fiduciary net position, beginning 48,077 55,902 44,908 44,708 43,100 39,364 35,699 35,291 34,426 30,263 Fiduciary net position, ending (b) 52,957 48,077 55,902 44,908 44,708 43,100 39,365 35,699 35,291 34,427 Net pension liability, ending = (a) - (b) $ 19,788 $ 18,941 $ 10,122 $ 21,123 $ 18,350 $ 19,857 $ 21,100 $ 23,109 $ 23,382 $ 22,092 Fiduciary net position as a % of total pension liability 72.80% 71.74% 84.67% 68.01% 70.90% 68.46% 65.10% 60.70% 60.15% 60.91% Covered payroll $ 5,665 $ 4,569 $ 5,067 $ 5,219 $** 5,557 *$ 5,561 $ 5,636 $ 5,504 $ 5,864 $ 5,971 Net pension liability as a % of covered payroll 349.32% 414.56% 199.79% 404.77% 330.20% 357.06% 374.39% 419.88% 398.73% 370.03% Covered payroll historical adjustments as follows: * 6/30/2019 - $5,557,431 corrected covered payroll. Total pensionable compensation from the plan year ending 6/30/2018 per census data. $5,395,564 times (x) 3.00% based on the assumed rate of annual pay increases for the plan. (Related Ratios FY20 report presentation was $5,396). ** 6/30/2020 - Adjusted covered payroll $5,218,784 represents the total pensionable compensation for plan participants from the plan year ending 6/30/2020, based on the census data that was provided as of 7/1/2020. (Related Ratios FY20 report presentation was $5,067). 268 132

2023 Annual Comprehensive Financial Report for the City of Dover, Delaware Financial Section – Part D – Required Supplementary Information Item 3. General Employee Pension Plan Schedule of Employer Contributions Contribution as Fiscal Year Actuarially Actual Contribution a Percentage of Ended Determined Employer Deficiency Covered Covered June 30 Contribution Contribution (Excess) Payroll Payroll 2023 $ 2,871,000 $ 5,349,000 $ (2,478,000) $ 5,665,000 94.42% 2022 3,232,888 3,248,190 (15,302) 4,569,076 71.09% 2021 2,881,048 2,427,721 453,327 5,066,622 47.92% 2020 2,914,587 2,606,067 308,520 5,218,784 49.94% 2019 2,885,737 2,703,583 182,154 5,557,431 48.65% 2018 3,016,283 4,777,466 (1,761,183) 5,561,300 85.91% 2017 2,824,098 2,876,657 (52,559) 5,635,987 51.04% 2016 3,025,982 3,089,409 (63,427) 5,504,387 56.13% 2015 2,983,776 3,419,512 (435,736) 5,864,089 58.31% 2014 2,628,694 3,472,736 (844,042) 5,970,703 58.16% 2013 3,217,964 9,788,571 (6,570,607) 7,076,322 138.33% There were historical adjustments made to covered payroll for 2019 and 2020, as noted on the Schedule of Changes in Net Pension Liability, Related Ratios (in Thousands). General Employee Pension Plan Schedule of Investment Returns (1) Fiscal year 2017 through 2023 Fiscal year ending June 30 2023 2022 2021 2020 2019 2018 2017 Money-weighted rate of return, net of investment expense 8.57% (15.35%) 29.71% 3.64% 6.76% 7.12% 12.50% (1) This schedule is presented to illustrate the requirement to show information for 10 years. However, information prior to June 30, 2017 is not available. 269 133

2023 Annual Comprehensive Financial Report for the City of Dover, Delaware Financial Section – Part D – Required Supplementary Information Item 3. The total pension liability was determined by an actuarial valuation as of June 30, 2023 with liabilities projected to the June 30, 2023 measurement date using the following actuarial assumptions, applied to all periods included in the measurement, unless otherwise specified. Any significant changes during this period have been reflected as prescribed by GASB 67 and 68. Methods and assumptions used to determine total pension liability: Valuation date July 1, 2022 rolled forward to June 30, 2023 Actuarial cost method Entry Age Method Asset valuation method Fair Market Value of assets on the measurement date Interest Rates: Discount Rate 6.5% Investment rate of return 6.5%, net of pension plan investment expense, including inflation Municipal Bond Rate N/A Inflation 2.35% Annual Pay Increases 3.0% Measurement Date June 30, 2022 Participant Data Collected as of July 1, 2021 Cost of Living Increases None Mortality Pub-2010 General Employees Amount-Weighted Mortality Table with -Pre-retirement: generational projection from the 2010 base year using Scale MP-2021 Pub-2010 General Retirees Amount-Weighted Mortality Table with -Healthy retirees: generational projection from the 2010 base year using Scale MP-2021 Pub-2010 General Disabled Retirees Amount-Weighted Mortality Table with generational projection from the 2010 base year using Scale MP- -Disabled retirees: 2021 Pub-2010 Contingent Survivors Amount-Weighted Mortality Table with -Beneficiaries: generational projection from the 2010 base year using Scale MP-2021 270 134

2023 Annual Comprehensive Financial Report for the City of Dover, Delaware Financial Section – Part D – Required Supplementary Information Item 3. County & Municipal Police and Firefighter's Pension Plan Schedule of the City of Dover's Proportionate Share of the Net Pension Liability Measurement Date 2022 2021 2020 2019 2018 2017 2016 2015 2014 City's proportion of the net pension liability(asset) 8.2346% 8.1574% 8.5117% 8.3407% 8.4242% 8.6629% 9.0042% 9.6070% 9.6334% City's proportionate share of the net pension liability(asset) $ (865,783) $(11,224,983) $1,308,109 $2,395,686 $1,940,156 $ 873,337 $1,431,281 $ (524,958) $(1,042,117) City's covered payroll 8,560,011 7,910,676 7,760,905 7,372,815 6,843,159 6,996,159 7,117,770 7,060,453 6,582,053 City's proportionate share of the net pension liability(asset) as a percentage of its covered payroll (10.11%) (141.90%) 16.86% 32.49% 28.35% 12.48% 20.11% (7.44%) (15.83%) Plan fiduciary net position as a percentage of the total pension liability 101.95% 128.19% 96.67% 93.25% 94.10% 109.23% 105.59% 101.97% 104.47% County & Municipal Police and Firefighter's Pension Plan Schedule of City of Dover's Contributions Fiscal Year Ending 2022 2021 2020 2019 2018 2017 2016 2015 # 2014 Contractually required contribution $ 1,375,074 $ 1,328,868 $ 1,317,526 $ 1,276,048 $ 1,258,817 $ 944,356 $ 951,199 $ 977,587 $ 933,750 Contributions in relation to the contractually required contribution (1,375,074) (1,328,868) (1,317,526) (1,276,048) (1,258,817) (944,356) (951,199) (977,587) (933,750) Contribution deficiency (excess) $ - $ - $ - $ - $ - $ - $ - $ - $ - City's covered payroll $ 8,560,011 $ 7,910,676 $ 7,760,905 $ 7,372,815 $ 6,843,159 $ 6,996,159 $ 7,117,770 $ 7,060,453 $ 6,582,053 Contributions as a percentage of covered payroll 16.06% 16.80% 16.98% 17.31% 18.40% 13.50% 13.36% 13.85% 14.19% 135 271

2023 Annual Comprehensive Financial Report for the City of Dover, Delaware Financial Section – Part D – Required Supplementary Information Item 3. OPEB Trust Fund Schedule of Changes in Net OPEB Liability, Related Ratios (In Thousands) Fiscal Year Ending June 30 2023 2022 2021 2020 2019 2018 2017 Total OPEB Liability Service cost $ 1,195 $ 1,118 $ 1,089 $ 1,120 $ 1,202 $ 1,222 $ 1,655 Interest 3,994 4,057 4,095 4,211 4,288 4,498 4,682 Experience Losses/(Gains) (734) - - - - - - Changes in Assumptions 4,429 (2,762) (5,370) (4,758) (5,152) (6,202) (2,871) Effect of assumption changes or inputs - (3,524) 2,448 483 1,311 - (4,833) Benefit payments (net of retiree contributions) (3,023) (2,903) (2,867) (2,755) (2,748) (2,704) (2,663) Net change in total OPEB liability 5,861 (4,014) (605) (1,699) (1,099) (3,186) (4,030) Total OPEB liability, beginning 58,702 62,716 63,321 65,020 66,119 69,305 73,335 Total OPEB liability, ending (a) $ 64,563 $ 58,702 $ 62,716 $ 63,321 $ 65,020 $ 66,119 $ 69,305 Fiduciary Net Position Employer contributions $ 3,783 $ 4,042 $ 3,504 $ 4,326 $ 5,448 $ 5,722 $ 4,603 Net Investment Income 4,777 (8,960) 12,864 1,871 2,184 2,295 3,074 Benefit payments (3,023) (2,903) (2,867) (2,755) (2,748) (2,704) (2,663) Administrative expenses (2) (7) (3) (9) (3) (8) (3) Net change in plan fiduciary net position 5,535 (7,828) 13,498 3,433 4,881 5,305 5,011 Fiduciary net position, beginning 48,343 56,171 42,673 39,240 34,359 29,054 24,043 Fiduciary net position, ending (b) $ 53,878 $ 48,343 $ 56,171 $ 42,673 $ 39,240 $ 34,359 $ 29,054 Net OPEB liability, ending = (a) - (b) $ 10,685 $ 10,359 $ 6,545 $ 20,648 $ 25,780 $ 31,760 $ 40,251 Fiduciary net position as a % of total OPEB liability 83.45% 82.40% 89.60% 67.40% 60.40% 52.00% 41.90% Covered payroll $ 28,254 $ 20,250 $ 19,756 $ 20,262 $ 19,578 $ 19,101 $ 17,657 Net OPEB liability as a % of covered payroll 37.82% 51.20% 33.10% 101.90% 131.70% 162.20% 210.70% This schedule is presented to illustrate the requirement to show information for 10 years. However, recalculations of prior years are not required, and if prior years are not reported in accordance with the current GASB standards, they should not be reported. 136 272

2023 Annual Comprehensive Financial Report for the City of Dover, Delaware Financial Section – Part D – Required Supplementary Information Item 3. OPEB Trust Fund Schedule of City’s Contributions (In Thousands) For the year ended June 30 2023 2022 2021 2020 2019 2018 2017 Actuarially determined contribution (ADC) $ 1,928 $ 1,712 $ 2,780 $ 3,190 $ 4,044 $ 4,560 $ 4,644 Contributions in relation to the ADC (3,783) (4,042) (3,504) (4,326) (5,447) (5,722) (4,603) Contributions deficiency / (excess) $ (1,855) $ (2,330) $ (724) $ (1,136) $ (1,403) $ (1,162) $ 41 Covered payroll $ 28,254 $ 20,250 $ 19,756 $ 20,262 $ 19,580 $ 19,578 $ 19,101 Contributions as a percentage of covered payroll 13.4% 20.0% 17.7% 21.4% 27.8% 29.2% 24.1% This schedule is presented to illustrate the requirement to show information for 10 years. However, until a full 10-year trend is compiled, governments should present information for those years for which information is available. Post-Employment Other than Pensions Plan (OPEB) Schedule of Investment Returns (1) Fiscal year 2017 through 2023 Fiscal year ending June 30 2023 2022 2021 2020 2019 2018 2017 Money-weighted rate of return, net of investment expense 9.90% (16.04%) 30.15% 4.77% 6.10% 7.87% 12.66% (1) This schedule is presented to illustrate the requirement to show information for 10 years. However, information prior to June 30, 2017 is not available. 273 137

2023 Annual Comprehensive Financial Report for the City of Dover, Delaware Financial Section – Part D – Required Supplementary Information Item 3. Actuarial Methods and Significant Assumptions Actuarial cost method Entry Age Normal Funding Method with Level % of Payroll Asset valuation date June 30, 2023 Asset valuation method Market value of assets Actuarial assumptions: Expected Return on Assets 7.0% Discount rate 7.0% Inflation rate 2.5% Healthcare cost trend rates Initial rate of 7.5% decreasing to 7.0% for 2025, 5.29% by 2030 and Pre-Medicare 4.54% by 2050, ultimately leveling off at 4.04% in 2075. Initial rate of 10.8% decreasing to 7.0% for 2025, 5.29% by 2030 and Medicare 4.54% by 2050, ultimately leveling off at 4.04% in 2075. Mortality Active Employees: SOA Pub-2010 General Employees Headcount Weighted Mortality Table, Civilians projected on a fully generational basis using mortality improvement scale MP-2021 SOA Pub-2010 Public Safety Employees Headcount Weighted Mortality Police Officers Table, projected on a fully generational basis using mortality improvement scale MP-2021 Terminated Vested Participants, Healthy Retirees and Spouses: SOA Pub-2010 General Retirees Headcount Weighted Mortality Table, Civilians projected on a fully generational basis using mortality improvement scale MP-2021 SOA Pub-2010 Public Safety Retirees Headcount Weighted Mortality Police Officers Table, projected on a fully generational basis using mortality improvement scale MP-2021 Surviving Spouses SOA Pub-2010 General Contingent Survivors Headcount Weighted Civilians Mortality Table, projected on a fully generational basis using mortality improvement scale MP-2021 SOA Pub-2010 Public Safety Contingent Survivors Headcount Weighted Police Officers Mortality Table, projected on a fully generational basis using mortality improvement scale MP-2021 Disabled Retirees SOA Pub-2010 General Disabled Retirees Headcount Weighted Mortality Civilians Table, projected on a fully generational basis using mortality improvement scale MP-2021 SOA Pub-2010 Public Safety Disabled Retirees Headcount Weighted Police Officers Mortality Table, projected on a fully generational basis using mortality improvement scale MP-2021 274 138

2023 Annual Comprehensive Financial Report for the City of Dover, Delaware Financial Section – Part D – Required Supplementary Information Item 3. NOTES TO REQUIRED SUPPLEMENTARY INFORMATION GOVERNMENTAL BUDGETS Budgetary Basis of Accounting The City prepares its budget for the General Fund revenue on a modified accrual basis. The expenditure is accounted for when the purchase orders are issued. Encumbrances are established when purchase orders are issued and accounted for as a reservation of fund balance at year-end and are not on a modified accrual basis. The budget is amended in the subsequent year for the outstanding encumbrances of the prior year. The modified accrual basis of accounting is used for the fund financial statements. General Fund actual revenues exceeded the final budget by $1,325,332 with positive variances in fines & police revenue, permits & other fees, police extra duty fees, recreation revenue, sanitation fees, rent revenue – garrison farm, court of chancery fees, investment income, interfund service receipts, police grants fund, police pension grant, transfer tax, and municipal street aid. The sources of revenues with negative variances are police extra duty, franchise fees, interfund service receipts, property taxes, miscellaneous state grant revenue, and civil traffic penalties. Actual total expenditures were lower than budget by $2,065,295 due to lower than budgeted expense across almost all functions apart from fire, inspections, police extra duty, and public works engineering. The net result is an increase of $3,390,608 to the General Fund ending fund balance. Budget Amendments During this fiscal year, the City Council amended the budget two times. The budget amendment ordinances were primarily for the following purposes: 1. To re-appropriate budget balances for ongoing capital projects, to amend the grant budgets and reserve accounts for the actual results from the prior fiscal year and to adjust program revenues and expenses based on actual amounts. 2. To amend revenue and expense accounts based on actual experience during fiscal year 2023. The differences for the year ended June 30, 2023 were as follows: Total revenues- budgetary basis $ 49,653,132 Total expenditures- budgetary basis 50,814,705 Net decrease in fund balance- budgetary basis (1,161,573) Perspective differences Transfer to/from Reserves (193,530) Leases - General Fund Subfund Expense Activity for the Capital Project Fund (4,882,142) Intrafund Transfers to the General Fund- Capital Projects Fund 3,554,600 General Fund Subfund Revenue Activity for the Capital Project Fund 1,959,642 Fair Value of Investments (152,683) Deferred Revenue Adjustment 203,237 Net increase in fund balance - GAAP Basis $ (672,449) 275 139

2023 Annual Comprehensive Financial Report for the City of Dover, Delaware Financial Section – Part D – Required Supplementary Information Item 3. This page intentionally left blank 276 140

2023 Annual Comprehensive Financial Report for the City of Dover, Delaware Financial Section Item 3. PART E SUPPLEMENTARY INFORMATION 277 141

2023 Annual Comprehensive Financial Report for the City of Dover, Delaware Financial Section – Part E – Supplementary Information Item 3. This page intentionally left blank 278 142

2023 Annual Comprehensive Financial Report for the City of Dover, Delaware Financial Section – Part E – Supplementary Information Item 3. FINANCIAL STATEMENTS GENERAL FUND COMBINING SCHEDULES The General Fund contains a sub-fund for capital projects which is separately budgeted. The combining schedules are presented in the supplementary information. The budgetary comparison for the Governmental Capital Projects Fund has its own separate budget and is presented in this section to show legal compliance. The perspective difference between the basis of budgeting and GAAP is explained in the reconciliation of the basis of budgeting to GAAP. 279 143

2023 Annual Comprehensive Financial Report for the City of Dover, Delaware Financial Section – Part E – Supplementary Information Item 3. The City of Dover, Delaware Combining General Fund Balance Sheet June 30, 2023 General Total General Capital Projects General Fund Fund Funds Assets: Cash and Cash Equivalents $ 6,590,987 $ 6,422,209 $ 13,013,196 Investments 4,972,074 3,466,158 8,438,232 Restricted Investments 19,322 - 19,322 Receivables, net Accounts 2,881,306 18,321 2,899,627 Taxes 36,928 - 36,928 Due from Other Funds 553,217 (2,884) 550,333 Temporary Advances 107,800 - 107,800 Prepaid Items 855,088 - 855,088 Inventory, at Cost 173,947 - 173,947 Total Assets $ 16,190,668 $ 9,903,804 $ 26,094,472 Liabilities: Accounts Payable $ 1,351,832 $ 78,826 $ 1,430,658 Unearned Revenue 89,375 58,825 148,200 Due to Other Funds 265 - 265 Other 70,225 - 70,225 Total Liabilities 1,511,698 137,651 1,649,349 Deferred Inflows of Resources: Unavailable revenue 76,446 - 76,446 Leases Revenue 2,038,940 - 2,038,940 Total Deferred Inflows of Resources 2,115,386 - 2,115,386 Fund Balances: Non-Spendable Inventory and Prepaids 1,029,035 - 1,029,035 Library Endowment 5,000 - 5,000 Patronage Stock 16,594 - 16,594 Restricted Library Endowment 2,728 - 2,728 Verizon Cable Franchise 73,979 - 73,979 Committed Contingency 749,396 - 749,396 Parkland Reserve - 1,449,173 1,449,173 Assigned Capital Projects - 8,316,979 8,316,979 Unassigned 10,686,853 - 10,686,853 Total Fund Balances 12,563,585 9,766,153 22,329,737 Total Liabilities and Fund Balances $ 16,190,669 $ 9,903,804 $ 26,094,472 280 144

2023 Annual Comprehensive Financial Report for the City of Dover, Delaware Financial Section – Part E – Supplementary Information Item 3. The City of Dover, Delaware Combining Schedule of Revenues, Expenditures and Changes in Fund Balances of the General Fund (Non-GAAP Basis) For the Year Ended June 30, 2023 General Total General Capital Projects General Fund Fund Funds Revenues Fines $ 651,468 $ - $ 651,468 Library Revenue- General 147,504 - 147,504 Library Revenue County Reimbursement 431,806 - 431,806 Licenses and Permits 3,906,092 - 3,906,092 Sanitation Fees 3,652,779 - 3,652,779 Miscellaneous Services 1,398,519 1,615,389 3,013,908 Property Taxes 16,105,462 - 16,105,462 Grants Received 1,478,466 180,397 1,658,863 Court of Chancery Fees 2,219,660 - 2,219,660 Investment Income 322,422 8,181 330,603 Total Revenues 30,314,178 1,803,967 32,118,145 Expenditures Current: General Government 3,054,397 - 3,054,397 Library Services 1,884,419 67,183 1,951,602 Public Safety and Law Enforcement 22,470,256 1,489,374 23,959,630 Public Works 3,602,049 2,185,669 5,787,718 Recreational Services 1,312,315 281,341 1,593,656 Streets and Sanitation Services 3,048,801 665,585 3,714,386 Engineering services 231,172 - 231,172 Financial Administration 3,205,347 110,293 3,315,640 Garage and Stores 1,753,337 82,697 1,836,034 Insurance 928,854 - 928,854 Retiree Health Care 2,328,500 - 2,328,500 Employee Pension 1,000,000 - 1,000,000 Community and Economic Development 150,000 - 150,000 Street Lights 832,139 - 832,139 Debt Service: Principal Retirement 496,787 - 496,787 Interest and Fiscal Charges 132,653 - 132,653 Total Expenditures 46,431,026 4,882,142 51,313,168 Excess (deficiency) of Revenues over Expenditures (16,116,848) (3,078,175) (19,195,023) Other Financing Sources and Uses Reserve Transfers - 150,000 150,000 Interfund Transfers 14,955,275 3,554,600 18,509,875 Total Other Financing Sources and Uses 14,955,275 3,704,600 18,659,875 Net Change in Fund Balances (1,161,573) 626,425 (535,148) Fund Balances at Beginning of Year 13,219,081 5,556,567 18,775,648 Fund Balances at End of Year 12,057,508 6,182,992 18,240,500 Perspective and GAAP (Non-GAAP) Differences: Fair Value of Investment Adjustment (219,138) (152,683) (371,821) Deferred Revenues - Non-spendable (122,482) - (122,482) Inventory & Prepaids - Non-spendable (1,029,035) - (1,029,035) Capital Asset - Assigned - (6,030,309) (6,030,309) Unassigned Fund Balance $ 10,686,853 $ - $ 10,686,853 281 145

2023 Annual Comprehensive Financial Report for the City of Dover, Delaware Financial Section – Part E – Supplementary Information Item 3. City of Dover, Delaware Governmental Capital Projects Fund Schedule of Revenues, Expenditures and Changes in Fund Balances Budget & Actual (Non-GAAP Basis) For the Year Ended June 30, 2023 Variance Original Final Positive Budget Budget Actual (Negative) Beginning Balance - Working Capital $ 463,900 $ 5,556,500 $ 5,556,567 $ 67 Revenues: State Grant - Other 1,452,500 1,695,600 180,397 (1,515,203) Police Grants - 5,700 5,675 (25) Miscellaneous Receipts - 1,179,000 1,158,665 (20,335) Transfer from General Fund for Projects 3,536,500 3,554,600 3,554,600 - Transfer from Parkland Reserve 1,045,000 1,334,000 - (1,334,000) Transfer from Capital Asset Reserve 290,000 340,000 150,000 (190,000) Transfer from Lodging Tax 275,000 450,000 464,905 14,905 Transfer from Other Reserves - - - - Total Revenues 6,599,000 8,558,900 5,514,242 (3,044,658) Total Beginning Balance & Revenues $ 7,062,900 $ 14,115,400 $ 11,070,809 $ (3,044,591) Expenditures: Fire $ 360,800 $ 507,100 $ 448,005 $ 59,095 Library - 154,500 67,183 87,317 Recreation 1,940,000 2,348,700 281,341 2,067,359 Code Enforcement 25,300 29,000 - 29,000 Planning - - - - Inspections - 30,100 - 30,100 Police 858,200 1,202,000 1,041,369 160,631 Streets 128,000 3,011,600 196,798 2,814,802 Sanitation 527,000 1,225,400 468,787 756,613 Grounds 93,900 154,300 118,067 36,233 Stormwater 1,865,700 3,437,500 1,127,857 2,309,643 Information Technology 153,100 160,600 110,293 50,307 Facilities Management 200,000 1,019,300 939,745 79,555 Fleet Maintenance - 5,700 - 5,700 Purchasing 172,000 152,700 82,697 70,003 Subtotal 6,324,000 13,438,500 4,882,142 8,556,358 Transfers and Miscellaneous Expenses: Transfer to Capital Asset Reserve - - - - Transfer to Parkland Reserve - - - - Transfer to Other Reserve - - - - Total Expenditures 6,324,000 13,438,500 4,882,142 8,556,358 Budget Balance - Working Capital 738,900 676,900 6,188,667 (5,511,767) Budget Balance & Expenditures $ 7,062,900 $ 14,115,400 $ 11,070,809 $ 3,044,591 Budget Balance - Working Capital $ 6,188,667 Perspective and GAAP (Non-GAAP) Differences: Fair value of investment adjustment (152,683) Assigned to Capital assets 2,280,995 Committed to Parks & Recreation improvements 1,449,173 Total Fund Balances $ 9,766,152 282 146

2023 Annual Comprehensive Financial Report for the City of Dover, Delaware Financial Section – Part E – Supplementary Information Item 3. FINANCIAL STATEMENTS SPECIAL REVENUE FUNDS Special Revenue Funds include the group of funds classified as grant funds, Lodging Tax Fund, and a Realty Transfer Tax Fund. The proceeds from specific revenue sources are restricted to specified expenditure purposes. The City adopts budgets for selected Special Revenue Funds. Combining and individual statements appear in this section. POLICE FEDERAL GRANTS The City of Dover Police Department receives various grants from the U.S. Department of Justice for local law enforcement. All federal grant transactions are recorded in this fund. POLICE STATE GRANTS The City of Dover Police Department receives various grants from the State of Delaware for public and highway safety. All state grant transactions are recorded in this fund. LIBRARY GRANTS The City of Dover Public Library receives various grants from the State of Delaware, Kent County, Miscellaneous entities, and the Federal Government. Activities associated with these grants are recorded in this fund. MUNICIPAL STREET AID The State of Delaware has passed legislation to share a portion of Delaware’s motor fuel tax revenue with local municipalities through grants. The amount of the grant the City receives depends on its population and miles of streets maintained. The grant is used for street light expense within the City. CDBG HOUSING GRANTS The City receives a U.S. Department of Housing and Urban Development Entitlement Grant for the Community Development Block Grant Program. This is to provide decent housing, a suitable living environment and expand economic opportunities primarily for people of low and moderate incomes. 283 147

2023 Annual Comprehensive Financial Report for the City of Dover, Delaware Financial Section – Part E – Supplementary Information Item 3. FINANCIAL STATEMENTS SPECIAL REVENUE FUNDS (continued) ARPA FUNDING GRANT The American Rescue Plan Act provided relief funds to the City of Dover due to the loss of public sector revenue due to the coronavirus pandemic. STATE OF DELAWARE DEPARTMENT OF TRANSPORTATION GRANTS The State of Delaware Department of Transportation grants provide funds for specific street projects in the City. State law provides funds to the State’s elected officials for suburban street aid, which officials can then provide to their respective districts. The City receives these funds for designated street projects and records all transactions for this fund. SUBSTANCE ABUSE PREVENTION GRANT The State of Delaware General Assembly Grant-In-Aid Program provides funds to implement a substance abuse prevention program for at-risk and/or disadvantaged youths in the City of Dover. ELECTRONIC RED-LIGHT SAFETY PROGRAM (ERLSP) The State of Delaware Department of Transportation provides a grant to municipalities that implement the Electronic Red-Light Safety Program. Under this program, the City is granted a portion of the fines collected from drivers who are ticketed for running red lights installed with electronic