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LEGISLATIVE, FINANCE, AND ADMINISTRATION COMMITTEE AGENDA MAY 27, 2014 - 6:00 P.M. CITY HALL COUNCIL CHAMBERS 15 LOOCKERMAN PLAZA DOVER, DELAWARE Public comments are welcomed on any item and will be permitted at appropriate times. When possible, please notify the City Clerk (736-7008 or e-mail at CityClerk@dover.de.us) should you wish to be recognized. AGENDA ADDITIONS/DELETIONS 1. Discussion - Fiscal Year 2014 Audit Program (Staff recommends acceptance of the audit program) 2. Proposed Grant-In-Aid Policy 3. Request of Dover Housing Authority for City of Dover to Serve as Responsible Entity for Environmental Reviews (Staff recommends that City Council not agree to be the Dover Housing Authority's Responsible Entity for Environmental Reviews) 4. Proposed Ordinance #2014-16 Amending Appendix E - Commercial and Industrial Building Redevelopment (Sponsors: Anderson and Townshend) (Staff recommends adoption of the proposed ordinance) 5. Adjournment by 7:00 p.m. /tm S:\AGENDAS-MINUTES-PACKETS-PRESENTATIONS-ATT&EXH\Committee-Agendas\2014\05-27-2014 LF&A.wpd THE AGENDA ITEMS AS LISTED MAY NOT BE CONSIDERED IN SEQUENCE. THIS AGENDA IS SUBJECT TO CHANGE TO INCLUDE THE ADDITION OR THE DELETION OF ITEMS, INCLUDING EXECUTIVE SESSIONS.

Auditor’s Responsibility for Communicating with Audit Committee Presented by: Donna Mitchell, CPA City Controller

Three Primary Purposes • To clearly communicate an overview of the audit scope, the timing of the audit, and the auditor’s responsibilities. • To provide timely observations arising from the audit that are relevant to oversight of the financial reporting process. • To obtain relevant audit-related information from those charged with governance. 2

Matters to Be Communicated • Auditor’s Responsibilities o The auditor’s responsibilities under generally accepted auditing standards. o This will be detailed in the auditor’s engagement letter, a copy of which will be provided to each audit committee member. • Planned Scope & Timing of Audit o An overview of the planned scope and timing of the audit that is not so detailed as to compromise audit effectiveness. • Significant Findings from the Audit o The auditor’s views about findings or issues that the auditor considers to be significant and relevant to those charged with governance regarding their oversight of the financial reporting process. o These will be communicated near or at the end of the audit. 3

Audit Calendar City of Dover 2014 Audit Calendar JUNE JULY AUGUST S M T W T F S S M T W T F S S M T W T F S 1 2 3 4 5 6 7 1 2 3 4 5 1 2 8 9 10 11 12 13 14 6 7 8 9 10 11 12 3 4 5 6 7 8 9 Detail Audit 15 Auditors - preliminary auditwork including walk throughs and inventory testing 21 13 15 16 17 18 19 10 11 12 13 14 15 16 Plan Submitted 22 23 24 25 26 27 28 20 21 22 23 24 25 26 17 18 19 20 21 22 23 Fuel measure 29 27 28 29 30 31 24 25 26 27 28 29 30 @ plant 31 SEPTEMBER OCTOBER NOVEMBER S M T W T F S S M T W T F S S M T W T F S 1 2 3 4 5 6 1 2 3 4 1 Test of Controls 7 8 9 10 11 13 5 6 7 8 9 10 11 2 3 4 5 6 7 8 Completed Draft Report to 14 15 16 17 18 19 20 12 13 14 15 16 17 18 9 10 11 12 14 15 Auditor Draft Schedules 21 22 23 24 25 26 27 19 20 21 22 23 & Statements to 25 16 17 18 19 20 21 22 Auditor* Draft CAFR 28 29 30 26 27 28 29 30 31 23 24 25 27 28 29 Completed *Trial Balances & Support Schedules Completed 10/24 & reviewed by Draft CAFR completed by November 26 (includes Notes & 30 Director. Statistical Section) DECEMBER S M T W T F S Holidays - Green Key Dates in Yellow 1 2 3 4 5 6 Draft CAFR - 7 9 10 11 12 13 LFA 14 15 16 17 18 19 20 21 22 23 Final Changes 25 26 27 28 29 30 CAFR to Printer Meetings with Auditors if requested by LFA 4

ACTION FORM PROCEEDING: Legislative, Finance and Adminstration Committee DEPARTMENT OF ORIGIN: Planning & Inspections DATE SUBMITTED: May 19, 2014 PREPARED BY: Ann Marie Townshend, AICP, Director of Planning and Community Development SUBJECT: Request from Dover Housing Authority for City of Dover to Serve as Responsible Entity for Environmental Reviews. REFERENCE: N/A RELATED PROJECT: N/A APPROVALS: Scott D. Koenig, P.E., City Manager EXHIBITS: EXPENDITURE REQUIRED: No direct expenditure of City funds, but Staff time is involved. AMOUNT BUDGETED: FUNDING SOURCE (Dept./Page in CIP & Budget): TIMETABLE: Would begin immediately upon Council approval. RECOMMENDED ACTION: Staff recommends that City Council not agree to be the Dover Housing Authority’s Responsible Entity for Environmental Reviews. BACKGROUND AND ANALYSIS In July 2013 the Dover Housing Authority requested that the City of Dover serve as its Responsible Entity for Environmental Reviews in accordance with Department of Housing and Urban Development (HUD) regulations. The City Manager, City Planner, and Community Development Manager met with Dover Housing Authority Staff to discuss a draft agreement and the expectations of the City under the draft agreement. Based on the information presented, staff verbally agreed that the commitment was acceptable. Following this discussion with the Dover Housing Authority, the Community Development Manager attended HUD training and discussed the Responsible Entity responsibilities with a HUD staff person responsible for Environmental Reviews. Based on the information obtained in this interaction with HUD, the City’s responsibilities as the Responsible Entity would be far more significant than originally conveyed by the Dover Housing Authority. The City’s Community Development Manager was reclassified to a Planner I last year, and she assumed a number of responsibilities under the Planning Office that are not related to Community Development and Housing. Additionally, if the City became the Responsible Entity, the scope of our role for Environmental Reviews would grow exponentially. Currently, the City receives approximately $250,000 annually in Community Development Block Grant funds. Of this, less than $100,000 is used for rehabilitation and renovation projects that would require some level of Environmental Review. Dover Housing Authority’s allocation of capital funds for FFY2013 was $400,000. Additionally, any small renovations that are paid out of the operating budget would also be under the City’s responsibility for Environmental Review. While the actual environmental work could be contracted out, City staff would need to review each project to determine if an environmental review is necessary or if it is exempt, and complete all associated paperwork and maintain records associated with it. The Planning Office cannot absorb this workload with our current staffing level. After discussing this matter with HUD, we have been advised that if the City of Dover does not agree to serve as the Responsible Entity, the Delaware State Housing Authority or HUD could perform the role. The decision of the City not to enter into an agreement to serve as the Responsible Entity would not inhibit the Dover Housing Authority’s eligibility to accept HUD funding, as another agency would take on this responsibility.

CITY OF DOVER PROPOSED ORDINANCE #2014-16 1 BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE CITY OF DOVER, IN COUNCIL 2 MET: 3 That Appendix E - Commercial and Industrial Building Redevelopment, Article VI - Severability and 4 Effective Dates, Section 2 - Effective Dates of the Dover Code be amended by deleting the text indicated 5 in bold, red, strikeout, and inserting the text indicated in bold, blue text, as follows: 6 Section 2. Effective dates. 7 This ordinance shall be became effective as of April 15, 2012. The provisions of this ordinance shall 8 no longer apply after December 31, 2015 2018. 9 ADOPTED: * 10 S:\ORDINANCES\2014\DRAFT\Ordinance #2014-16 Amending Appendix E - Commercial and Industrial Building Redevelopment.wpd 11 SYNOPSIS 12 The proposed amendment extends the sunset provision for the tax abatement, impact fee 13 waiver, and building permit waiver incentives for three (3) years. 14 (SPONSORS: ANDERSON AND TOWNSHEND) 15 Actions History 16 05/27/2014 - Scheduled for Introduced at Legislative, Finance, and Administration Committee