COUNCIL Minutes

REGULAR COUNCIL MEETING The Regular Council Meeting was held on June 28, 2010 at 7:30 p.m. with Council President Hogan presiding. Council members present were Mr. Bonar, Mrs. Russell, Mr. McGlumphy, Mr. Leary, Mr. McGiffin, Mrs. Williams, Mr. Salters, and Mr. Ruane. Council staff members present were Police Chief Hosfelt, Ms. Russell, Mrs. Mitchell, Mrs. Townshend, Fire Chief Christiansen, Mr. DePrima, City Solicitor Rodriguez, and Mrs. McDowell. Mayor Carey was also present. OPEN FORUM The Open Forum was held at 7:15 p.m., prior to commencement of the Official Council Meeting. Council President Hogan declared the Open Forum in session and reminded those present that Council is not in official session and cannot take formal action. Mr. Bruce Pringle, of the Delaware State News (Dewey Beach), advised members that he will be retiring, thanked everyone for their cooperation throughout the years, and relayed special thanks to the City Clerk’s Office for their diligence and timeliness in providing information. He stated that he had covered several local governments since 1972 and that no other local government has provided as much detailed information as the City of Dover, which made his job as reporter easier and benefits citizens as well. Mr. Robert Tudor, 706 E. Division Street, requested clarification on the last property assessment conducted by Tyler Technologies. He felt that the assessment was mismanaged. He advised members that after appealing an assessment, his property assessment was reduced from $13M to $6.5M. Mr. Tudor noted that a private assessment conducted by McGinnis Real Estate for the purpose of determining estate taxes reflected the value of his property at $4.4M, and he felt that this was an indication that Tyler Technologies’ property evaluation was not conducted by professional representatives with knowledge of the Dover area. He objected to the requirement to provide the City of Dover with detailed rental property income. He explained the difficulty of raising rental fees for his tenants during these economic times and stated that rental rates for some tenants are locked in by five (5) year leases. Mr. Tudor felt that the square footage rental rates used in the assessment were elevated and noted that 25% of his building space is empty. He stated that his assessment rate increased 50% from the previous year. Mr. Karlton Schmidt, 102 Lotus Street, sang a song reminding members that they work for the citizens of Dover and not the City Manager or the employees. The invocation was given by Chaplain Dixon, followed by the Pledge of Allegiance. AGENDA ADDITIONS/DELETIONS Mr. McGiffin moved for approval of the agenda as presented, seconded by Mr. Leary and unanimously carried. Mr. Salters moved for approval of the consent agenda, seconded by McGiffin and carried by a unanimous roll call vote.

CITY COUNCIL MEETING OF JUNE 28, 2010 PAGE 2 ADOPTION OF MINUTES - REGULAR COUNCIL MEETING OF JUNE 14, 2010 The Minutes of the Regular Council Meeting of June 14, 2010 were unanimously approved by motion of Mr. Salters, seconded by Mr. McGiffin and bore the written approval of Mayor Carey. PUBLIC HEARING - BOARD OF ASSESSMENT APPEALS EXEMPTION REPORTS - MAY 5, MAY 26, AND JUNE 9, 2010 The following Board of Assessment Appeals Exemption Reports were presented to members for their review and consideration: BOARD OF ASSESSMENT APPEALS EXEMPTION REPORT - MAY 5, 2010 The Board of Assessment Appeals met on May 5, 2010. Exemption - A & I Housing Inc. Location: 80 N Halsey Road - ED05-68.18-02-74.00 Background and Analysis: Original: $135,000 Request: Exemption Status Reason for Exemption Request: This parcel falls under State Statute §8105 Property owned by Governmental religious educational or charitable agency. A & I Housing Inc. Does not meet the required date of July 14, 1988 for the creation of their corporation and therefore may be ineligible. Recommended Actions: Staff recommended consideration of approval. No one from A & I Housing Inc. was present at the hearing. Ms. Russell went over the code and made it clear that, even though the organization does not meet the required date of July 14, 1988, staff recommends that the property be exempt. Mr. Garfinkel was wondering about the relation of the owner and the subcontract they have, because it appears that they manage the houses. In the state law it states that if the property is sold for investment, they are not entitled for an exemption, he went on to say that if the owner was present at the meeting, that would have been a question that would have been asked. Mr. Garfinkel did want it to go on record, that the board was not able to ask the appellant any question, as no one was present. Mr. Stonesifer explained that in his understanding A & I Housing Inc. purchases homes, in his case older homes, fixes them up and rents the homes to mentally challenged individuals at a very low rent. The committee recommended that the organization receive exemption status, as they are non-profit. By consent agenda, Mr. Salters moved for approval of the committee’s recommendation, seconded by Mr. McGiffin and carried by a unanimous roll call vote.

CITY COUNCIL MEETING OF JUNE 28, 2010 PAGE 3 Exemption - A & I Housing Inc. Location: 235 N New St - ED05-076.08-02-63.03 Background and Analysis: Original: $128,700 Request: Exemption Status Reason for Exemption Request: This parcel falls under State Statute §8105 Property owned by Governmental religious educational or charitable agency. A & I Housing Inc. Does not meet the required date of July 14, 1988 for the creation of their corporation and therefore may be ineligible. Recommended Actions: Staff recommended consideration of approval. Mr. Garfinkel was wondering about the relation of the owner and the subcontract they have, because it appears that they manage the houses. In the state law it states that if the property is sold for investment, they are not entitled for an exemption, he went on to say that if the owner was present at the meeting, that would have been a question that would have been asked. Mr. Garfinkel did want it to go on record, that the board was not able to ask the appellant any question, as no one was present. Mr. Stonesifer explained that in his understanding A & I Housing Inc. purchases homes, in his case older homes, fixes them up and rents the homes to mentally challenged individuals at a very low rent. The committee recommended that the organization receive exemption status, as they are non-profit. By consent agenda, Mr. Salters moved for approval of the committee’s recommendation, seconded by Mr. McGiffin and carried by a unanimous roll call vote. Exemption - A & I Housing Inc. Location: 728 Maple Parkway - ED05-068.18-05-01.00 Background and Analysis: Original: $133,300 Request: Exemption Status Reason for Exemption Request: This parcel falls under State Statute §8105 Property owned by Governmental religious educational or charitable agency. A & I Housing Inc. Does not meet the required date of July 14, 1988 for the creation of their corporation and therefore may be ineligible. Recommended Actions: Staff recommended consideration of approval.

CITY COUNCIL MEETING OF JUNE 28, 2010 PAGE 4 Mr. Garfinkel was wondering about the relation of the owner and the subcontract they have, because it appears that they manage the houses. In the state law it states that if the property is sold for investment, they are not entitled for an exemption, he went on to say that if the owner was present at the meeting, that would have been a question that would have been asked. Mr. Garfinkel did want it to go on record, that the board was not able to ask the appellant any question, as no one was present. Mr. Stonesifer explained that in his understanding A & I Housing Inc. purchases homes, in his case older homes, fixes them up and rents the homes to mentally challenged individuals at a very low rent. The committee recommended the organization to receive exemption status, as they are non-profit. By consent agenda, Mr. Salters moved for approval of the committee’s recommendation, seconded by Mr. McGiffin and carried by a unanimous roll call vote. Exemption - B. 1. DIMA IX Inc. Location: 456 E Loockerman St.- ED05-077.06-01-67.00 Background and Analysis: Original: $206,300 Request: Exemption Status Reason for Exemption Request: This parcel falls under State Statute §8105 Property owned by Governmental religious educational or charitable agency. DIMA IX Inc. does not meet the required date of July 14, 1988 for the creation of their corporation and therefore may be ineligible. Recommended Actions: Staff recommends consideration of approval. Ms. Russell explained to the board that this company is the same affiliation as A & I Housing Inc. It is the same situation as A & I Housing Inc. The committee recommended the organization to receive exemption status, as they are non-profit. By consent agenda, Mr. Salters moved for approval of the committee’s recommendation, seconded by Mr. McGiffin and carried by a unanimous roll call vote. Exemption - DIMA IX Inc. Location: 223 Mifflin Road - ED05-076.10-02-03.01 Background and Analysis: Original: $212,400 Request: Exemption Status

CITY COUNCIL MEETING OF JUNE 28, 2010 PAGE 5 Reason for Exemption Request: This parcel falls under State Statute §8105 Property owned by Governmental religious educational or charitable agency. DIMA IX Inc. does not meet the required date of July 14, 1988 for the creation of their corporation and therefore may be ineligible. Recommended Actions: Staff recommended consideration of approval. Ms. Russell explained to the board that this company is the same affiliation as A & I Housing Inc. It is the same situation as A & I Housing Inc. The committee recommended the organization to receive exemption status, as they are non-profit. By consent agenda, Mr. Salters moved for approval of the committee’s recommendation, seconded by Mr. McGiffin and carried by a unanimous roll call vote. Exemption - DIMA I X Inc. Location: 15 Pin Oak Dr. - ED05-067.14-04-23.00 Background and Analysis: Original: $197,300 Request: Exemption Status Reason for Exemption Request: This parcel falls under State Statute §8105 Property owned by Governmental religious educational or charitable agency. DIMA IX Inc. does not meet the required date of July 14, 1988 for the creation of their corporation and therefore may be ineligible. Recommended Actions: Staff recommended consideration of approval. Ms. Russell explained to the board that this company is the same affiliation as A & I Housing Inc. It is the same situation as A & I Housing Inc. The committee recommended the organization to receive exemption status, as they are non-profit. By consent agenda, Mr. Salters moved for approval of the committee’s recommendation, seconded by Mr. McGiffin and carried by a unanimous roll call vote. Exemption - Pennsylvania Lines LLC Location: Land/Tracks - S West St. - ED05-076.08-01-43.00 Background and Analysis: Original: $150,000 Request: Exemption Status

CITY COUNCIL MEETING OF JUNE 28, 2010 PAGE 6 Reason for Exemption Request: This parcel falls under State Statute 9 Del. C. §8108 Railroad property. Ms. Russell told the board that no one was present to represent this organization. She went on to explain, that she recommends this property be approved from exemption as it falls under State Statute 9 Del. C. §80108 Railroad property. The committee recommended approval of the request for exemption. By consent agenda, Mr. Salters moved for approval of the committee’s recommendation, seconded by Mr. McGiffin and carried by a unanimous roll call vote. Exemption - Pennsylvania Lines LLC Location: Land/Tracks - New Burton Road Background and Analysis: Original $729,000 Request Exemption Status Reason for Exemption: This parcel falls under State Statute 9 Del. C. §8108 Railroad property. Ms. Russell told the board that no one was present to represent this organization. She went on to explain, that she recommends this property be approved from exemption as it falls under State Statute 9 Del. C. §80108 Railroad property. The committee recommended approval of the request for exemption. By consent agenda, Mr. Salters moved for approval of the committee’s recommendation, seconded by Mr. McGiffin and carried by a unanimous roll call vote. Exemption - Village of Westover Homeowners Assoc. Location: Open Spaces - Village of Westover Parcel Original Request ED05-076.09-02-01 $113,300 Exemption Status ED05-076.13-01-57.00 $ 71,900 Exemption Status ED05-076.13-01-58.00 $143,000 Exemption Status ED05-076.13-02-57.00 $ 7,100 Exemption Status ED05-076.13-02-58.00 $ 94,100 Exemption Status ED05-076.13-02-59.00 $ 39,200 Exemption Status ED05-076.13-02-60.00 $ 98,000 Exemption Status ED05-076.13-02-61.00 $ 39,200 Exemption Status ED05-076.13-03-18.00 $121,500 Exemption Status ED05-076.13-03-31.00 $ 27,400 Exemption Status ED05-076.13-04-64.00 $ 23,100 Exemption Status

CITY COUNCIL MEETING OF JUNE 28, 2010 PAGE 7 ED05-076.13-04-65.00 $ 19,200 Exemption Status ED05-076.13-04-66.00 $ 12,600 Exemption Status ED05-076.13-04-87.00 $ 37,400 Exemption Status ED05-076.13-05-48.00 $ 28,600 Exemption Status Reason for Exemption Request: This parcel falls under State Statute C.§8110 Civic organizations owning parkland. Mrs. Grden represented the homeowners Association via phone. Ms Russell pointed out to the board and Mrs. Grden that under Delaware State Law if the land is owned by a homeowner association they would be able to be exempt . The committee recommended approval of the exemption status. By consent agenda, Mr. Salters moved for approval of the committee’s recommendation, seconded by Mr. McGiffin and carried by a unanimous roll call vote. Exemption - Westover LLC Location: Open Spaces - Village of Westover Parcel Original Request ED05-0746.09-02-39.00 $ 29,000 Exemption Status ED05-076.10-02-87.00 $666,000 Exemption Status ED05-076.10-02-89.00 $ 70,600 Exemption Status ED05-076.13-03-33.00 $165,800 Exemption Status Reason for Exemption Request: This parcel does not fall under State Statute 9 Del. C. §8110 Civic organizations owning parkland. Ms. Russell recommended that tax exempt status be denied for these four properties because they are not owned by the homeowner association but by the developer. Mr. Stonesifer asked if this land is to be turned over into the name of the homeowners association at which time Mrs. Grden explained that the land is still in the name of Westover LLC and that this was an oversight. She went on to explain that the homeowner association is maintaining the open spaces. The committee recommended to deny the request for exemption. Council President Hogan declared the public hearing open. There being no one present, Council President Hogan declared the public hearing closed. Mr. Salters moved for approval of the committee’s recommendation to deny the request for exemption, seconded by Mr. Bonar and carried by a unanimous roll call vote. Exemption - Robino-Sea Chase LLC Location: Open Spaces - Village of Westover

CITY COUNCIL MEETING OF JUNE 28, 2010 PAGE 8 Parcel Original Request ED05-076.09-02-86.00 $ 9,800 Exemption Status ED05-076.09-02-87.00 $ 23,500 Exemption Status ED05-076.09-02-88.00 $ 54,900 Exemption Status ED05-076.09-02-89.00 $ 5,900 Exemption Status Reason for Exemption Request: These parcels do not fall under State Statute 9 Del. C. §8110 Civic organizations owning parkland. Ms. Russell also recommended to deny these properties, as they do not fall under the Homeowner Association. Mr. Stoneseifer asked why the homeowner association is filing for exemption, when these parcels are not owned by them. The committee recommended to deny the request for exemption. Council President Hogan declared the public hearing open. There being no one present wishing to speak, Council President Hogan declared the public hearing closed. Mr. Salters moved for approval of the committee’s recommendation to deny the request for exemption, seconded by Mr. Leary and carried by a unanimous roll call vote. BOARD OF ASSESSMENT APPEALS EXEMPTION REPORT - MAY 26, 2010 The Board of Assessment Appeals met on May 26, 2010. Exemption - Persimmon Park Place Condominium Council Inc. Location: 110 Persimmon Cir. - LC05-058.17-03-2.00 Background and Analysis: Original: $318,500 Requested: Exemption Status Reason for Exemption Request: This parcel falls under State Statute 9 Del. C. §8110 Civic Organizations owning parkland. Mr. Tolbert was there to speak for the Corporation. He brought with him a letter in which he explains that Persimmon Park Place Condominium Council Inc. is a not organized for profit organization and that the general purpose for the organization is to maintain, operate and administer the common element areas and community facilities in Persimmon Park Place Condominium Mobile Park Development. Mr. Garfinkel asked for which areas the exemption is being sought. Mr. Tolbert explained that they are Parking Lots, Pool, Park Areas, Club House, etc. Ms. Russell explained that it is all on one parcel. Mr. Burns ask if the public is allowed on these areas at which time Mr. Tolbert said that only residents are allowed and only those who are invited by residents. Mr. Tolbert made it clear to the board understands that these areas are only for those who live there.

CITY COUNCIL MEETING OF JUNE 28, 2010 PAGE 9 Mr. Burns asked if anyone who is on the Association would be able to rent the pool area to outsiders in order to earn extra money, Mr. Tolbert told him that this is not the case. After Mr. Tolbert left the room the board went into deliberation. Ms. Russell pointed out that in the Delaware State Code the word “or”, is used, not the word “and” as earlier discussed, she believes that as long as the members are allowed to use the areas without being charged it is the Assessor’s recommendation to grant the exemption. Mr. Burns asked if “or” is the correct wording and what the City’s Legal Opinion is? Ms. Russell pointed out the Village of Westover is also exempt. After some deliberation Mr. Burns asked if Ms. Russell could get a legal opinion of the definition of the land. Ms. Russell suggested the Exemption request to be tabled until a legal opinion has been obtained. The committee tabled the Exemption to get a legal opinion of the definition of the land. See Report of June 9, 2010. Exemption - First Pilgrim Baptist Church Location: 350 Frear Drive - ED05-068.14-01-14.00 Background and Analysis: Original: $142,100 Requested: Exemption Status Reason for Exemption Request: This parcel falls under State Statute 9 De. C.§8105 Property owned by governmental, religious, educational of charitable agency. The board introduced themselves to Mrs. Miles, who is also the pastor of First Pilgrim Baptist church. Mrs. Miles asked the board, that the day-care center located at 350 Frear Drive, be exempted and that the church is a non-profit organization. She told the board that the upstairs of the building, is not rented out. Mrs. Miles explained that the church is not gaining any funding from the daycare center and that in fact 75% of the daycare center is funded by the church. The church has not pursued the idea of renting out the upstairs of the building as there are too many rules and regulations with running a daycare center. She went on to say, that only church members are helping out with the daycare as means of some income for them. Mrs. Miles told the board that the First Pilgrim Baptist church does have an exemption with the Levy Court. Mr. Garfinkel asked if the daycare is properly zoned with the City, at which time Mrs. Miles assured that all of the proper steps have been taken. Mr. Garfinkel also asked who the property was purchased from and was told that the property was purchased from a family in that area. Mrs. Miles was asked if anybody is living in the property, she replied that no one lives there it is only used as a daycare. Mr. Garfinkel asked if the property is paid for by church funds and was told that the church does pay for the property. Mr. Burns asked if any part of the house is donated to the church and if the person that sold the house to church was a member of the church, which they were not. Mr. Burns asked how many children are allowed to be in the daycare center. Mrs. Miles told him that they are allowed 28 children, 14 during the day and 14 at night, which she explained that they have never had that many children at the daycare

CITY COUNCIL MEETING OF JUNE 28, 2010 PAGE 10 center. She explained that the State does not fund as much to daycare facilities anymore as they did in the past and that some families pay $25-$50 per week. After Mr. Garfinkel asked the question if any of the Board Members of the church work at the daycare, Mrs. Miles replied, that one of the board members does help out whenever one of the child care providers is absent. Mr. Burns went on to summarize that the daycare has 12 students, whose families are paying a portion, the State pays a portion and the church subsidizes the rest of the cost. Mrs. Miles explained that the original intent for the daycare was to help out church members who cannot afford daycare and that perhaps the money generated by the daycare would pay the mortgage, which has not happened yet. Mr. Burns asked how much the mortgage was, which according to Mrs. Miles is $1,500 per month. Mrs. Miles was asked if any of the members help with cutting the grass, at which time she explained that her husband takes care of the grass cutting. Mr. Burns asked if the church, which is located in the town of Camden has a daycare facility. Mrs. Miles replied that would be nice, but would also create problems, especially with funerals and church services, when the fellowship hall needs to be used. Mr. Burns asked why a church, that is based in Camden, would create a daycare in the City of Dover, when they are not even renting out the second floor. Mrs. Miles explained that she lives in Dover and most of her parishioners live in Dover as well. She said that they did look for a property in Camden but when this house came available they decided to buy it as she lives close to the property and is able to look over things much easier. After Mrs. Miles left, the board deliberated. Mr. Burns explained that there are lot of rules and regulations related to daycare. Mr. Burns was wondering why the property was exempt from the Transfer Tax at the time of purchase, when the church is clearly paying a mortgage, which means that there was in fact a purchase price. Mr. Russell explained that because they are church they did not have to disclose the amount of the sale, which is part of a Delaware law. Mr. Burns asked how other daycares in the city are assessed. Ms. Russell said that usually daycares are within the residence, where they are assessed as residential homes. One daycare in the city which is exempt, is “Mom’s House” which is for single moms. Mr. Burns explained that the daycare in question does employ people. Ms. Russell suggested to table the matter and get a legal opinion, to find out what information the county used to exempt this property. The committee tabled the matter. See Report of June 9, 2010. Exemption - Young Men’s Christian Association of Delaware Inc. Location: 1145 S. State St. - ED05-077.17-05-57.00 Background and Analysis: Original: 245,000 Requested: Exemption Status Reason for Exemption Request: This parcel fall under State Statute 9 Del. C. §8106 Specific organizations and purposes.

CITY COUNCIL MEETING OF JUNE 28, 2010 PAGE 11 Mr. Kelly and Mr. Pool were present to represent the YMCA. The gentleman explained that the YMCA purchased the property to expand the facility to add a gym. After the gentleman left the room the board deliberated. The committee recommended to exempt the property. By consent agenda, Mr. Salters moved for approval of the committee’s recommendation, seconded by Mr. McGiffin and carried by a unanimous roll call vote. Exemption - Young Men’s Christian Association of Delaware Inc. Location: 1169 S State Street - ED05-077.17-05-58.00 Background and Analysis: Original: $322,000 Request: Exemptions Status Reason for Exemption Request: This parcel fall under State Statute 9 Del. C. §8106 Specific organizations and purposes. Mr. Kelly and Mr. Pool were present to represent the YMCA. The gentleman explained that the YMCA purchased the property to expand the facility to add a gym. After the gentleman left the room the board deliberated. The committee recommended to exempt the property. By consent agenda, Mr. Salters moved for approval of the committee’s recommendation, seconded by Mr. McGiffin and carried by a unanimous roll call vote. Exemption - Correctional Officers Association of Delaware Location: 1243 College Park Drive - ED05-067.00-02-12.09 Background and Analysis: Original: $ 691,600 Request: Exemption Status Reason for Exemption Request: This parcel has a 501 ( c ) 5 status with the Federal Government. At this time, they do not have an exemption with Kent County. An opinion was requested from the Assessor’s Office (attached to the Board minutes). Before the meeting Mr. Russell explained to the board that the representative for this property had called into the office to let the board know that he would not be able to make the meeting, due to

CITY COUNCIL MEETING OF JUNE 28, 2010 PAGE 12 health reasons. Ms. Russell suggested to go over the documents supplied to the board and make a decision based on this information. Ms. Russell recommended denial as the organization does not have an exemption with the county. After Ms. Russell found out that the organization does not have an exemption from the county, she asked for a legal opinion, which also suggested the organization does not qualify. Mr. Garfinkel said that based on the legal opinion provided by Ms. Russell, there would be no reason to exempt this property. The committee recommended to deny the exemption. Council President Hogan declared the public hearing open. There being no one present wishing to speak, Council President Hogan declared the public hearing closed. Mr. Salters moved for approval of the committee’s recommendation to deny the exemption, seconded by Mr. Leary and carried by a unanimous roll call vote. BOARD OF ASSESSMENT APPEALS EXEMPTION REPORT - JUNE 9, 2010 The Board of Assessment Appeals met on June 9, 2010. Exemptions - Persimmon Park Place Condominium Council Inc. Location: 110 Persimmon Cir. - LC05-058.17-03-2.00 Background and Analysis: Original: $318,500 Requested: Exemption Status Reason for Exemption Request: This parcel falls under State Statute 9 Del. C. §8110 Civic Organizations owning parkland. During their meeting of May 26, 2010, members tabled the exemption request in order to obtain a legal opinion regarding the definition of the land. This request for exemption was brought back to the Board on June 9, 2010 after the requested legal opinion had been obtained. Mr. Garfinkel expressed that these spaces are not public open space but private open space. Ms. Russell explained that each development is required to have a certain amount of open space. Mr. Burns asked if all open spaces in the City of Dover are exempt at which time Ms. Russell explained that the exemptions have to be requested the same as the Village of Westover, which was just granted an exemption a couple of weeks prior. The parcels do have to be in the name of the Homeowners Association, they cannot be in the builder’s name. Mr. Burns asked the question if once the open space has been exempt, if anybody can come and use those areas. Mr. Garfinkel expressed the same concern, as he had asked the question at the first hearing and was told by Mr. Tolbert, that only people that own property in the neighborhood would be allowed to use those areas. In Mr. Burns’s opinion, the open spaces should be taxed ever so slightly, so the open spaces

CITY COUNCIL MEETING OF JUNE 28, 2010 PAGE 13 stay private, because he believes that if the open spaces are public other people will use it. Mr. Miller pointed out to the board, that if for some reason anybody starts using the open spaces, that then the homeowner association could request the exemption to be lifted, he also pointed out to the board that the homeowners association asked for the exemption. The committee recommended to grant the exemption. By consent agenda, Mr. Salters moved for approval of the committee’s recommendation, seconded by Mr. McGiffin and carried by a unanimous roll call vote. Exemption - First Pilgrim Baptist Church Location: 350 Frear Drive - ED05-068.14-01-14.00 Background and Analysis: Original: $142,100 Requested: Exemption Status Reason for Exemption Request: This parcel falls under State Statute 9 De. C.§8105 Property owned by governmental, religious, educational of charitable agency. During their meeting of May 26, 2010, members tabled the exemption request in order for a legal opinion to be obtained regarding what information the County used to exempt this property. This request for exemption was brought back to the Board on June 9, 2010 after the requested legal opinion had been obtained. After the Board read over the legal opinion Mr. Garfinkel raised the question, about the daycare being a business. Mr. Burns remembered that Mrs. Miles had said that the church is paying for the mortgage, which in Mr. Burns’ opinion, is what the daycare is used for. Mr. Miller (Tyler Technologies) pointed out that the use of the daycare is for charity purposes. In Mr. Miller’s opinion the question is the organization for profit or for charity? Mr. Burns expressed his concern about the location of the property. He was wondering if a church which is located in the town of Camden, would buy a home in the city of Dover to use as a daycare. In his opinion the organization was making money, as they have a mortgage to pay. Mr. Burns said that most residential daycares have the owner living in the home and are taxed. Ms. Russell pointed out that those daycares are making money. He also pointed out that Mrs. Miles did say that one of the board members does work at the daycare. Ms. Russell pointed out that it had been said that the board member helping out was only helping out if the daycare was short one person. In Mr. Miller’s opinion the church is not making any money, when Mr. Garfinkel pointed out that the daycare is making money. In Mr. Burns’ opinion the daycare is hiding behind the church and used to pay for the mortgage. Ms. Russell pointed to the YMCA which the board just granted exemption for, they also have a daycare in the facility. In Mr. Garfinkel’s opinion, the YMCA cannot be compared to this daycare, this was a property bought for a specific purpose. Ms. Russell explained that if Mrs. Miles would start renting out the upstairs, then the building would only be 50% exempt. In Mr. Burns’ and Mr. Garfinkel’s opinion, the lawyer was not very clear in

CITY COUNCIL MEETING OF JUNE 28, 2010 PAGE 14 explaining the law. Ms. Russell explained that if the organization would bring in people and charge for daycare that would be for profit, but in this case the church is trying to help out its less fortunate church goers. Mr. Garfinkel stated that if the daycare was in the church he would not have a problem, but since a house was bought for purpose of daycare, it does not seem clear to him. The committee recommended to deny the request for exemption. Ms. Russell noted that the legal opinion of June 3, 2010 recommended approval of the exemption for 350 Frear Drive for First Pilgrim Baptist Church; however, the committee has recommended denial of the request for exemption. Mr. Ruane noted that the Delaware Code, 9 Del. C. §8105, requires that the property is “not held by way of investment”. He questioned if any documentation is required to help clarify whether or not a property is held by way of investment. Responding, Ms. Russell stated that such documentation is not currently required; however, she indicated that Ms. Schrader, Attorney for City of Dover Tax Assessor’s Office, had contacted her requesting the opportunity to review the City’s ordinance for possible amendments to address these concerns. She stated that this requirement would then be applicable next year. In response to Mr. Ruane, Ms. Russell assured members that property owners were made aware of the public hearings to be held by City Council regarding the request for exemption and that reminder letters were also sent. Responding to Mr. McGlumphy, Ms. Russell explained that it is the opinion of the Assessor’s Office and the Attorney that the property is not being held by way of investment and was confident that the Church is not making a profit. She noted that the Board was more concerned with the fact that the Church is located in Camden and the property is located in the Towne Point Development. Ms. Russell stated that the Church Pastor resides in the Towne Point Development and was made aware of the property becoming available. The property was purchased by the Church with the intent of providing a daycare facility. Since the Church was located elsewhere, she stated the Board was concerned that the property is being used for investment purposes. Ms. Russell stated that the Church provided information verifying that any funds acquired by providing daycare are used for paying the mortgage. She also noted that the second floor of the property is not currently used and, should the area be utilized for residential purposes (which would require variances from the City), the Tax Office would then tax a portion of the property. However, at this time, only the first floor of the property is being used and solely as a daycare facility. Noting that there is much ambiguity regarding this request, Mr. Salters felt that there was not enough information provided to allow for members of Council to make a decision. He suggested that the matter be tabled to allow staff the opportunity to obtain additional information. Council President Hogan declared the public hearing open. There being no one present wishing to speak, Council President Hogan declared the public hearing closed.

CITY COUNCIL MEETING OF JUNE 28, 2010 PAGE 15 Mr. Salters moved to postpone action on this matter to allow the City Assessor to evaluate actual facts, to be presented back to the members within 45 days, seconded by Mrs. Williams. Responding to Mr. Ruane, Ms. Russell indicated that she would contact Bishop Miles and request that she provide audited financial statements for the property for review by City Council. The motion to postpone action on this matter to allow the City Assessor to evaluate actual facts, to be presented back to the members within 45 days, carried by a roll call vote of five (5) yes, and four (4) no (Mrs. Russell, Mr. Leary, Mr. McGiffin, and Mr. Ruane). Mr. Salters moved for acceptance of the Board of Assessment Appeals Exemption Report for May 5, May 26, and June 9, 2010, seconded by Mr. Leary. Mr. Ruane relayed concern with the total number of properties that are tax exempt and questioned the status for the City. Responding, Ms. Russell indicated that there are 554 parcels (4.7% of total parcel count), which would equate to $1,222,368,900 (27.9% of the total) in property value. If these properties were non-exempt, the taxes collected would be $4,129,162. She stated that she was aware of entities that provide payment-in-lieu-of-taxes (PILOT), such as the State of Delaware and Luther Towers; however, she was not aware of the exact amounts provided. The motion for acceptance of the Board of Assessment Appeals Exemption Reports for May 5, May 26, and June 9, 2010 was unanimously carried. UTILITY COMMITTEE REPORT - JUNE 14, 2010 The Utility Committee met on June 14, 2010 with Chairman Ruane presiding. National Pollution Discharge Elimination System (NPDES) Municipal Separate Storm Sewer Systems (MS4) Permit In response to inquiries and a request of Mr. Ruane, Mr. Anthony DePrima, City Manager, and Mrs. Ann Marie Townshend, Director of Planning and Community Development, provided members with information regarding the National Pollution Discharge Elimination System (NPDES) Municipal Separate Storm Sewer Systems (MS4) Permit. The information explained what the Dover NPDES permit is, how it has been administered in the past, and how it will be administered it in the future. Mrs. Townshend advised members that the City of Dover operates what the Federal government recognizes as a Municipal Separate Storm Sewer System. Under the National Clean Water Act, the U. S. Environmental Protection Agency (EPA) regulates these systems through state environmental agencies. In Delaware, the Department of Natural Resources and Environmental Control (DNREC) is the delegated regulatory agency under the EPA. The purpose of regulation is to minimize pollution that flows into local rivers and streams from municipal storm systems. Typically this includes any pollutant that falls on roadways, including litter, car oil, household chemicals dumped down drains, and fertilizers or pesticides applied to lawns.

CITY COUNCIL MEETING OF JUNE 28, 2010 PAGE 16 In August 2003, DNREC issued a five (5)-year permit to the City of Dover that required the City to take measures to encourage the removal of pollutants from stormwater run-off that ultimately ends up in the City’s water bodies, including Silver Lake and the St. Jones River. Mrs. Townshend stated that the permit includes six (6) measures and a series of actions to be completed each year, as follows: 1) public education and outreach; 2) public involvement and participation; 3) illicit discharge detection and elimination; 4) construction site stormwater runoff control; 5) post-construction stormwater management in newly developed areas and redeveloped areas; and 6) pollution prevention and good housekeeping She indicated that originally, the Public Works Department was responsible for the permit, and it was assigned to the engineering staff within that department. In 2006, with the reorganization of Public Works, Planning, and Public Utilities, the engineering staff moved to the Public Utilities Department; however, management of the permit remained under what became the Public Services Department. With no specific staff assigned to manage this responsibility, completing the requirements became an increased challenge. Staff from various divisions and departments (including Geographic Information System (GIS), Public Affairs, Engineering, and Planning) were contributing to the effort. Mr. DePrima explained that it became increasingly evident that the skills of the Planning Department were much better suited to coordinating the permitting documents and reporting them to DNREC. Over the last year, the Planning Office has worked with the Public Services Manager/Director of Public Works to bring the permit up to date. City staff has met with DNREC staff on numerous occasions to resolve issues associated with the permit, and a number of permit requirements are being implemented. Mr. DePrima advised members that the City will strengthen implementation of a committee approach to future permit management. Utilizing this approach, the Planning Department will be responsible for making NPDES permit applications, monitoring progress, and filing reports with DNREC. Various departments will be assigned action items related to the permit, and those action items will be included in department goals and performance evaluation goals of staff members. Responding to Mr. Bonar regarding improvements to the runoff into Silver Lake since 2003, Mr. Scott Koenig, Public Services Manager/Director of Public Works, advised members that the City is not currently required to conduct chemical or quantitative analysis on the waters entering Silver Lake or the St. Jones and explained the difficulties in measuring such pollutants. He stated that, currently, the permit requires assurance that the City is educating the public on practices that will improve water quality, and is less concerned with empirical analysis of hard data. He stated that these education efforts include improving construction techniques, mapping and maintaining the system, etc., and measurements would be based on improvements, such as the construction of a stormwater pond, rather than measurement of contaminants.

CITY COUNCIL MEETING OF JUNE 28, 2010 PAGE 17 Also in response to Mr. Bonar, Mr. Koenig stated that control measures have been instituted by Delaware State University. During the past 5-10 years, there have been quantitative construction improvements at Delaware State University that would, from an engineering standpoint, result in a scientific response that there has been an improvement to the water quality; however, it would be difficult to measure this improvement. Mr. Bonar recollected the use of Silver Lake, several years ago, as a prime recreational resource area that was used for swimming, water skiing, etc. He expressed his hope that the quality of the lake could be restored so that it could once again be utilized in this fashion. Responding, Mr. Koenig stated that a study was conducted that indicated that significant financial investments would be required to restore Silver Lake as a recreational area. In addition, he explained that management of Silver Lake requires a cooperative effort from the County and several other entities outside the City’s jurisdiction. Mr. Koenig noted that, although City resources spent on the Lake would assist in its improvement, this would not resolve the issue, since the City would be treating the problem at the end rather than resolving the factors that initially create the pollutants. Mr. Koenig added that, although Silver Lake is a major water asset in the City, it is only a small aspect of the MS4 permit. Referring to Measurement #5, post-construction stormwater management in newly developed areas and redeveloped areas, Mr. Ruane questioned if the current permit refers to any objectives related to the maintenance of stormwater ponds. Responding, Mrs. Townshend stated that the requirements regarding stormwater ponds are under the jurisdiction of the Kent Conservation District. The permit does require the adoption of ordinances relating to the area of stormwater, and she anticipated this would be addressed through the committee process. Responding to Mr. Ruane, Mrs. Townshend stated that a letter was received in May 2010 from DNREC that included requirements of the City to be completed by November 1, 2010 in order to renew the permit. Mr. Ruane requested that the Committee be provided periodic updates on this issue. Mr. DePrima reminded members that there is a City Council session scheduled for Wednesday, June 16, 2010, to review the City Manager’s performance goals and that one of his goals is to produce a report to Council describing Wilmington’s stormwater management system utility, the systems that other municipalities have implemented in this regard, and the availability of funding for this type of project. Mr. DePrima introduced Ms. Laura Allison, DNREC - Silver Lake/St. Jones Watershed Coordinator, whose responsibility is to focus on the improvement and management of the St. Jones Watershed and Silver Lake. Ms. Allison stated that she was recently assigned to this position and looks forward to working with the City. Mr. Bonar encouraged staff to research the possibility of securing grants for this project. Mr. DePrima assured members that staff is poised to pursue grants since Silver Lake is “the most studied lake in Delaware”; however, he cautioned that estimated costs to eradicate the problems at the Lake are significant.

CITY COUNCIL MEETING OF JUNE 28, 2010 PAGE 18 The Committee recommended acceptance of the report. By consent agenda, Mr. Salters moved for approval of the Committee’s recommendation, seconded by Mr. McGiffin and carried by a unanimous roll call vote. Mr. Bonar requested that staff contact Ms. Katherine Hamilton, President of GridWise Alliance, to request that a presentation be made to the Committee on the subject of “Smart Meters”. By consent agenda, Mr. Salters moved for acceptance of the Utility Committee Report, seconded by Mr. McGiffin and carried by a unanimous roll call vote. LEGISLATIVE, FINANCE, AND ADMINISTRATION COMMITTEE REPORT - JUNE 14, 2010 The Legislative, Finance, and Administration Committee met on June 14, 2010 with Chairman Leary presiding. Review and Recommendation - Filling of Critical Positions During their meeting of February 23, 2009, members recommended approval of the Hiring Freeze for Fiscal Year 2008-2009, but to allow the hiring of critical positions through the review and approval of the Legislative, Finance, and Administration Committee and City Council. It was suggested that there be a “standing” agenda item to consider the filling of critical positions and, if there are no positions to consider, the item could be removed. Permanent Full time and Temporary Full-Time Administrative Assistant - City Clerk’s Office Members considered a request for permission to recruit for a permanent, full-time Administrative Assistant position in the City Clerk’s Office. In addition, members were provided a request to waive Article V – Recruitment and Selection, Section 1 – Recruitment Sources of the Employee Handbook and temporarily hire the previous Records Management Coordinator, Ms. Denise Devine, until a permanent employee can be hired. Mrs. Traci McDowell, City Clerk, reviewed the permission to recruit and reminded members that Mrs. Rebecca Rollison was recently promoted to Fire Chief’s Assistant with the Fire Department. She also reminded members that Ms. Devine is fully trained in records management, conduct of municipal elections, and Clerk’s Office administrative responsibilities, including preparation of Council packets (paper and paperless), and would be available for immediate employment. Responding to Mr. Leary, Mrs. McDowell stated that the process for hiring to fill a vacant position is lengthy and, referring to the recent filling of the Fire Chief’s Assistant position, she noted that the request for permission to recruit was considered by the Committee on January 25, 2010 and that Mrs. Rollison began serving in that capacity on May 17, 2010. In response to Dr. Jones’ concerns, Mrs. McDowell assured members that the permanent, full-time position will be opened to anyone wishing to apply.

CITY COUNCIL MEETING OF JUNE 28, 2010 PAGE 19 The Committee recommended that staff be granted permission to recruit for the permanent, full-time Administrative Assistant position in the City Clerk’s Office and temporarily hire the previous Records Management Coordinator, Ms. Denise Devine, until a permanent employee can be hired. By consent agenda, Mr. Salters moved for approval of the Committee’s recommendation, seconded by Mr. McGiffin and carried by a unanimous roll call vote. Temporary Full-Time Payroll Specialist - Finance Department Members considered a request for permission to recruit for a temporary, full-time Payroll Specialist position in the Finance Department. Mrs. Donna Mitchell, Controller/Treasurer, reviewed the permission to recruit and reminded members that the City’s current Payroll Specialist, Mr. Turhan Jordan, has recently been given orders for military deployment for one (1) year. Since staff is currently working on the Request for Proposals (RFP) for outsourcing payroll services, she explained that it is not desired to make any permanent decisions regarding the position at this time. Responding to Mr. McGlumphy, Mrs. Mitchell indicated that for previous positions, it was determined that it was less expensive to utilize an employee from a temporary employment agency than to hire an employee directly. Mr. McGlumphy requested that staff provide all costs associated with filling vacant positions in the future. The Committee recommended that staff be granted permission to recruit for the temporary, full-time Payroll Specialist position in the Finance Department. By consent agenda, Mr. Salters moved for approval of the Committee’s recommendation, seconded by Mr. McGiffin and carried by a unanimous roll call vote. Medicare Part B Reimbursement Exception During their meeting of May 24, 2010, members considered a request of the International Union of the Electronic, Electric, Salaried Machine and Furniture Workers - Communication Workers of America (IUE-CWA) for a Medicare Part B reimbursement exception for a retired Field Service Representative with 33 years of service. After much discussion, the matter was tabled until receipt of a legal opinion. The Commmittee removed the matter from the table. Mr. Anthony DePrima, City Manager, noted the receipt of a legal opinion from Deputy City Solicitor William Pepper, Sr., which was provided to members for their review and consideration. Mr. DePrima noted that the legal opinion provided by Mr. Pepper stated that he knew of no rule that would prevent the City from taking the requested action. Although Mr. Pepper stated he generally discouraged clients from making exceptions to a “bright line” rule, particularly one that has been in place for 2½ years, Mr. Pepper felt that this case was “sui-generis” (of its own class, unique, or particular.

CITY COUNCIL MEETING OF JUNE 28, 2010 PAGE 20 Mr. DePrima stated that he did not feel that this action would set a precedent. He stated that the employee in question learned immediately after the union agreement became operable that his position would be terminated. He also stated that there was a reduction in force involved, which is something that does not occur frequently in the City. In response to Mr. McGlumphy, Mr. DePrima stated that, although the legal opinion contained “defensive language”, he felt that Mr. Pepper’s first opinion was that this was a unique situation. The Committee recommended approval of this non-precedent setting request for a Medicare Part B reimbursement exception. Mr. Leary moved for approval of the Committee’s recommendation, seconded by Mr. McGiffin. Although the Committee’s recommendation indicates that this is a “non-precedent” setting request, Mr. Ruane felt that the legal opinion provided regarding this issue does not totally agree with the request being “non-precedent” setting; therefore, he stated that he would not support the recommendation. Mr. McGlumphy stated that Medicare Part B reimbursement is a practice of the City, explaining that it is not a benefit of the City. The motion to approve the Committee’s recommendation for approval of this non-precedent setting request for a Medicare Part B reimbursement exception was carried by a roll call vote of six (6) yes and three (3) no (Mr. McGlumphy, Mr. Leary, and Mr. Ruane). Concerns Regarding Bidding by Minority Businesses (Deferred by Committee on May 24, 2010 Due to Time Constraints) Mr. Anthony DePrima, City Manager, advised members that the City has a provision within the purchasing guidelines which allows for a 3% preference if a business is a Certified Minority or Women’s Business (certified by the State of Delaware). This preference is included as a part of a bid packet, which also contains instructions on how a business can claim this preference. He stated that, to his knowledge, although the City has awarded contracts or business to minority businesses, it has not been due to the preference allowed, but rather because they had submitted the lowest bid. Responding to Mr. Ruane, Mr. DePrima clarified that, although some businesses have included a minority certification with their bid, they were either the lowest bidder or did not fall within the 3% range permitted for consideration. In response to Mr. Salters, Mr. DePrima stated that the City of Dover does not “set aside” a certain number of contracts to be made available only for minority bids. He was not aware of any communities that provide for a “set aside” clause and suggested that if it was the desire of members, staff would conduct further research into this matter. Mr. McGlumphy suggested that a more conscious effort be made to attract minority businesses and felt that the City often utilizes the same vendors. In addition to researching the possibility of

CITY COUNCIL MEETING OF JUNE 28, 2010 PAGE 21 providing “set aside” contracts, he suggested that staff develop an ordinance that provides for greater diversity in the City’s vendor preferences. Mr. Bonar suggested that staff research the minority and women’s business program provided by the State of Delaware. Mr. Clay Hammond, 505 Troon Road, advised members that he serves as the Chairman of the Delmarva Black Chamber of Commerce and member of the Governor’s Supply and Diversity Council. Rather than the development of an ordinance, he felt the City would be better served by providing a program that would encompass both above and below-bid threshold purchases. Noting the importance of small businesses to the local economy, Mr. Hammond advised members that the use of a program that promotes diversified use of small businesses would reduce unemployment, increase licensing, etc. He suggested that members review the program developed by the City of Wilmington for further consideration. The Committee recommended that staff be directed to study the bidding process as it relates to minorities and women and bring a program back to the Committee that would address the issues discussed by members. Responding to Mr. Leary, Mr. DePrima indicated that a report could be brought back to the Committee within 90 days. By consent agenda, Mr. Salters moved for approval of the Committee’s recommendation, seconded by Mr. McGiffin and carried by a unanimous roll call vote. Proposed Ordinance #2010-18 - Appendix B - Zoning, Article 9 - Board of Adjustment Mrs. Ann Marie Townshend, Director of Planning and Community Development, advised members that the State statute (Del. Code, Title 22, Chapter 3 - Municipal Zoning Regulations, Subchapter II - Board of Adjustment) establishes the legal authority for municipal boards of adjustment. Over time, case law has clarified the State law regarding the role of boards of adjustment and the standards for granting use and area variances. The standards for a variance set forth in the City of Dover Zoning Ordinance are currently more stringent than the standards supported by Delaware case law. This has created challenges for the Board of Adjustment, the Planning Staff, and applicants to the Board of Adjustment in evaluating applications to the Board. Staff provided members with a Proposed Ordinance that would bring the City’s Zoning Ordinance into compliance with the State statute and case law and help to avoid confusion in evaluating applications to the Board of Adjustment. Members were assured that the Proposed Ordinance was reviewed by City Solicitor Nicholas Rodriguez to ensure that it complies with State statute and case law. Staff recommended that Proposed Ordinance #2010-18 be forwarded to City Council for a First Reading on June 28, 2010; referred to the Planning Commission for consideration on July 19, 2010; and that a Final Reading and public hearing be set before City Council on August 9, 2010.

CITY COUNCIL MEETING OF JUNE 28, 2010 PAGE 22 Responding to Mr. Bonar, Mrs. Townshend stated that staff will be presenting additional amendments for consideration and that, in some instances, it will align the City more with the State. She felt that this could be a goal to be further discussed during her annual review of goals with Council. Mr. Ruane suggested that the notification process be expanded for matters being considered by the Board of Adjustment. Responding, Mrs. Townshend stated that Section 3.1 requires notification to be provided to all property owners abutting the immediate area being considered, as well as those property owners within 200 feet. Mr. Ruane noted that, according to Line 155, notification could be provided for property owners “within 200 feet or such additional distance as the board of adjustment may deem advisable...”. He felt that there were instances when the notification should be broadened. Responding, Mrs. Townshend stated that City staff would not be making this decision, since it specifies that the Board of Adjustment would be making such determination, and that if 200 feet is felt to be too narrow and should be broadened, she suggested that members consider an amendment. In response to Mr. McGiffin, Mrs. Townshend confirmed that the Board of Adjustment has a very narrow role and that the legal case for a variance is either there or not; however, during the site plan, conditional use, and subdivision process, public testimony is given consideration in making a decision. Responding to Mr. Ruane, Mrs. Townshend indicated that the Proposed Ordinance does not include any provisions regarding matters that have been in violation for a period of time; however, she stated that case law indicates that receiving forgiveness for being in violation rather than obtaining permission is not a reason to deny a variance. In reviewing case law, she stated that each case must be considered individually and based on the facts of the case and not based on a single issue. The Committee recommended that Proposed Ordinance #2010-18 (attached to Committee minutes) be forwarded to City Council for a First Reading on June 28, 2010; referred to the Planning Commission for consideration on July 19, 2010; and that a Final Reading and public hearing be set before City Council on August 9, 2010. By consent agenda, Mr. Salters moved for approval of the Committee’s recommendation, seconded by Mr. McGiffin and carried by a unanimous roll call vote. (The First Reading of the Ordinance will take place during the latter part of the meeting.) Refunding of 2004 Electric Revenue Bonds Mrs. Donna Mitchell, Controller/Treasurer, advised members that current interest rates on tax-exempt municipal bonds would provide the City of Dover with approximately $1.2 million in savings if the City refunded the 2004 Electric Revenue Bonds. She indicated that the City’s Debt Policy provides guidance for refinancing debt if the present value savings over the life of the respective issue is three percent (3%) or greater. She advised members that the savings calculated on the current 2004 Series was at 3.09% as of April 16, 2010 and that since that time, rates have lowered.

CITY COUNCIL MEETING OF JUNE 28, 2010 PAGE 23 Mrs. Mitchell reminded members that these bonds were issued as taxable bonds due to the previous power supply contract with Duke Energy. She explained that the City would refund the bonds with tax-exempt bonds, as permitted under IRS regulations with the structure of current power supply contracts. Once staff has completed the bond prospectus and all the necessary financing documents, Mrs. Mitchell indicated that staff would submit the final Bond Resolution to City Council for approval. She assured members that the City’s Bond Counsel has reviewed the refunding and confirmed the ability to refinance as a tax-exempt issue. Staff recommended approval to refund the 2004 Taxable Electric Revenue Bonds with Series 2010 Tax Exempt Electric Revenue Bonds. The Committee recommended approval to refund the 2004 Taxable Electric Revenue Bonds with Series 2010 Tax Exempt Electric Revenue Bonds. By consent agenda, Mr. Salters moved for approval of the Committee’s recommendation, seconded by Mr. McGiffin and carried by a unanimous roll call vote. Reaffirmation of Authority to Purchase Utility Commodities and Execute Contracts During the Council Meeting of May 3, 2006, Mrs. Donna Mitchell, Controller/Treasurer, advised members that the City of Dover has in place an approved risk management policy associated with the purchase of energy commodity and related investment contracts. The purpose of the energy commodity and investment contracts resulting from the application of the risk management policy is: 1) to secure economic and reliable energy supply to meet the ongoing energy requirements of the City and its citizens; and 2) to provide price certainty for those end users purchasing electricity supply from the City. Mrs. Mitchell indicated that, to facilitate the City’s continuing ability to utilize a wide array of tools to control future energy costs and secure energy supplies, the City works with multiple counterparties to establish enabling agreements that allow for a diversification of counterparty credit risk and a competitive procurement model for the purchase of energy commodity and related investments. Mrs. Mitchell reminded members that the City Manager and Mayor were authorized to sign purchase power supply agreements. PACE has since been acquiring counterparties, so that there is a diverse group of vendors for the City to make power supply purchases. She advised members that some of these vendors have requested reaffirmation from Council of authority for the City Manager and Mayor to sign the agreements. Mrs. Mitchell explained that the purpose of the request is to reaffirm that, as noted in the City Council minutes dated May 3, 2006, the City of Dover: 1) May enter into Edison Electric Institute (EEI) Master Power Purchase & Sale Agreements, International Swaps and Derivatives Association (ISDA) Master Agreements, North American Energy Standards Board (NAESB) Master Agreements, or other similar enabling agreements, along with any related schedules, credit support documents and confirmations, or other documents pertaining to any energy commodity or investment transactions;

CITY COUNCIL MEETING OF JUNE 28, 2010 PAGE 24 2) May enter into energy commodity or investment transactions for a duration not to exceed six (6) years from the date of transaction execution; 3) Has authorized Pace Global Asset Management, LLC (“Pace Global”) to act as its agent for all energy commodity and related investment transactions; and 4) Has granted the City Manager and Mayor the authority to execute energy commodity and investment transactions on behalf of the City. City Clerk’s Office Note: During their Special Meeting of May 3, 2006, City Council authorized the Mayor and City Manager, individually, to enter into master agreements between suppliers of electricity and the City of Dover to establish contractual relationships for transactions to implement the electricity and fuels purchasing strategy, plan and transactions contemplated under the Energy Management Agreement with Pace Global Asset Management, LLC. Staff recommended that Council confirm the City’s ability and authority to enter into energy commodity transactions. The Committee recommended reaffirmation that the City: 1) may enter into Edison Electric Institute (EEI) Master Power Purchase & Sale Agreements, International Swaps and Derivatives Association (ISDA) Master Agreements, North American Energy Standards Board (NAESB) Master Agreements, or other similar enabling agreements, along with any related schedules, credit support documents and confirmations, or other documents pertaining to any energy commodity or investment transactions; 2) may enter into energy commodity or investment transactions for a duration not to exceed six (6) years from the date of transaction execution; 3) has authorized Pace Global Asset Management, LLC ("Pace Global") to act as its agent for all energy commodity and related investment transactions; and 4) has granted the City Manager and Mayor the authority to execute energy commodity and investment transactions on behalf of the City. By consent agenda, Mr. Salters moved for approval of the Committee’s recommendation, seconded by Mr. McGiffin and carried by a unanimous roll call vote. Mr. Leary moved for acceptance of the Legislative, Finance, and Administration Committee Report, seconded by Mr. McGiffin and unanimously carried. SPECIAL PARKS, RECREATION, AND COMMUNITY ENHANCEMENT COMMITTEE REPORT - JUNE 28, 2010 (Held Earlier in the Afternoon) The Parks, Recreation, and Community Enhancement Committee met on June 28, 2010 with Chairwoman Russell presiding. APPROVAL OF 2010 COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) FIVE (5) YEAR CONSOLIDATED PLAN AND PROPOSED RESOLUTION #2010-04 During the Regular Council Meeting of June 14, 2010, members were provided the 2010 Community Development Block Grant (CDBG) Five (5) Year Consolidated Plan and Proposed Resolution #2010-04. City Council referred this item back to the Parks, Recreation, and Community Enhancement Committee to be considered at this time for a final review and recommendation to Council.

CITY COUNCIL MEETING OF JUNE 28, 2010 PAGE 25 Members were reminded that the Consolidated Plan (2010-2014) is a five (5) 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, and community development. Mrs. Tracy Harvey, Community Development Manager, noted that the Consolidated Plan is due in 2010, which is a census year, and that the census data used is from 2000. She stated that 2000 Comprehensive Housing Affordability Strategy (CHAS) data was used throughout the plan and that this data is used by local governments for housing planning and is a part of the Consolidated Plan process. She explained that complete and current CHAS information will not be available until later in the year and that, although some 2009 CHAS data was available, it was inconsistent with the 2000 data and did not provide the information necessary to update tables required by HUD. She stated that HUD has indicated that 2009 CHAS data is not a requirement for the Plan and that grantees can use 2000 census data. Mrs. Harvey stated that most of the data for the City of Dover has been updated from the 2008 and 2009 Delaware Population Consortium Report and information received from the Homeless Planning Council, the Delaware State Housing Authority, and the Dover Housing Authority. Mrs. Harvey assured members that the Consolidated Plan meets the requirements of HUD and includes all required information. Responding to Mrs. Horsey, Mrs. Harvey stated that, although HUD authorized the use of 2000 census data, some of the tables were updated utilizing local data for the City of Dover. She confirmed that these updates were included following initial submission of the report to members of City Council during their meeting of June 14, 2010. Mr. Ruane requested, without objection, that the Economic Development Office provide detailed, current information regarding their accomplishments for inclusion the next time the Plan is updated. Concurring, Mr. McGlumphy suggested that information regarding goals achieved be included in future reports. Responding, Mrs. Harvey advised members that the Community Development Office is required to submit a Consolidated Annual Performance Report, which specifies goals that have been met and what has been accomplished for the program year. She explained that HUD assesses this information and provides a report on the City’s performance in September of each fiscal year. Referring to the paragraph, “Homeless Needs”, as mentioned on Page 35 of the Plan, Mr. Ruane questioned the completeness of the second sentence, which reads: “The Target Area is defined”. Mrs. Ann Marie Townshend, Director of Planning and Community Development, suggested that a detailed description, including street boundaries and a map of the Target Area, be included in the Plan. She assured members that these additions could be accomplished by the time the Plan is presented to Council later this evening and prior to submission to HUD. Mr. Ruane suggested that the Plan provide better clarification of the programs offered City-wide and those offered to a concentrated area (Target Area). Referring to Page 28, Special Needs Facilities and Services, Mr. Ruane suggested that the Plan be revised to provide some acknowledgment of the services provided by the National Alliance for the

CITY COUNCIL MEETING OF JUNE 28, 2010 PAGE 26 Mentally Ill in the section “Special Needs Facilities and Services”. Responding, Mrs. Harvey indicated that those services were listed on Page 63 of the Plan as being funded by HUD. After much discussion, Mrs. Townshend assured members that staff would include a paragraph regarding the services provided by the National Alliance for the Mentally Ill on Pages 28-29 of the Plan prior to its final submission to HUD. Mrs. Horsey suggested that, for clarification, staff include maps and/or provide references to other pages within the Plan when a topic is mentioned throughout. Mr. McGlumphy also suggested that staff consider the possibility of including exhibits that could be mentioned throughout the Plan rather than including repetitive paragraphs. The committee recommended approval of the 2010 Community Development Block Grant (CDBG) Five (5) Year Consolidated Plan and adoption of Proposed Resolution #2010-04 (attached to Committee minutes). Mrs. Russell moved for approval of the Committee’s recommendation, seconded by Mr. Salters and, by a unanimous roll call vote, Council adopted Resolution #2010-04, as follows: WHEREAS, the City of Dover is entitled to $296,526 through the United States Department of Housing and Urban Development Community Development Block Grant program; and WHEREAS, the City of Dover has prepared the 2010-2014 Consolidated Plan, in accordance with the United States Department of Housing and Urban Development guidelines, that serve as the primary planning document for identifying and meeting the housing and community development needs for the low and moderate-income residents of Dover; and WHEREAS, the City of Dover is in favor of utilizing the Community Development Block Grant funds for the community development purposes in accordance with the National Community Development objectives of benefitting low and moderate income families, eliminating slums and blight, and meeting other community development objectives; and WHEREAS, the United State Department of Housing and Urban Development requires the City of Dover to submit a Consolidated Plan and an Action Plan for Application for Federal Assistance including the proposed use of funds and including certain certifications and policies to obtain its $296,526 entitlement; and use of $10,292 in program income for eligible activities; and NOW, THEREFORE BE IT RESOLVED THAT THE MAYOR AND COUNCIL OF THE CITY OF DOVER APPROVE THE 2010-2014 Community Development Block Grant Consolidated Plan and application for Federal Assistance included in the Consolidated Plan, along with certifications and policies attached and authorize its forwarding to the United States Department of Housing and Urban Development for consideration. ADOPTED: JUNE 28, 2010

CITY COUNCIL MEETING OF JUNE 28, 2010 PAGE 27 Mrs. Russell moved for acceptance of the Parks, Recreation, and Community Enhancement Committee Report, seconded by Mr. Salters and unanimously carried. ANNUAL REPORT - DOVER FIRE DEPARTMENT By consent agenda, Mr. Salters moved for acceptance of the Annual Report for the Fire Department, as presented. The motion was seconded by Mr. McGiffin and carried by a unanimous roll call vote. MONTHLY CIP REPORT - APRIL 2010 By consent agenda, Mr. Salters moved for acceptance of the Monthly CIP Report for April 2010, seconded by Mr. McGiffin and carried by a unanimous roll call vote. EXPENDITURE AUTHORIZATION - 2010 OFFICE OF JUSTICE PROGRAMS (OJP) JUSTICE ASSISTANCE GRANT Police Chief Hosfelt advised members that the Dover Police Department recently received its annual allocation from the Office of Justice Programs (OJP) for the 2010 Justice Assistance Grant (JAG). Similar to previous years, Dover Police Department was identified as a disparate funding agency along with the Smyrna Police Department and Kent County. He advised members that there is no disparate funding situation between the three (3) entities because there is no law enforcement function at the County level. This is because law enforcement is provided by municipal police departments or the State Police for areas lying outside of incorporated limits within the County. In addition, the County also does not bear the cost for prosecution or incarceration that arises for Part 1 violent crimes, since these costs are budgeted and paid for by the State of Delaware. Police Chief Hosfelt explained that, due to the disparate condition, the submission of a joint grant application for the three (3) agencies is required. Since the Dover Police Department will be receiving the lion’s share of the amount, they will serve as the fiscal and administrative agent for the grant. This means that all funds for the grant will be disbursed through City of Dover accounts; however, Smyrna Police Department expenses will still be controlled and approved by the City of Smyrna. Police Chief Hosfelt assured members that there are no additional costs associated with the grant that would be required of the City. He indicated that the Dover Police Department plans to use the funds, as follows: Police Department website design $50,000 Supplemental computer upgrades and enhancements (not previously budgeted) 22,800 Subtotal $72,800 Smyrna Police Department $13,775 Grand Total $86,575

CITY COUNCIL MEETING OF JUNE 28, 2010 PAGE 28 Staff recommended approval of the expenditure authorization for the 2010 Office of Justice Programs (OJP) Justice Assistance Grant. Mrs. Williams moved for approval of staff’s recommendation, seconded by Mr. Bonar and carried by a unanimous roll call vote. EXPENDITURE AUTHORIZATION - CIP PROJECT PD1001 - CORE LAW ENFORCEMENT SERVER REPLACEMENTS Police Chief Hosfelt reminded members that the Core Law Enforcement Server Replacements were already approved in the FY10 CIP budget. The project involves the replacement of several servers that host the services platform for providing key law enforcement systems in dispatch, patrol, records and evidence. He indicated that the systems are also accessed by all sworn personnel in processing complaints and calls for service. The vendors for this project will be New World for the main server software and Dell (state contract vendor) for the hardware. This action form was provided as information regarding the expenditures which is required because the dollar amount for the total project exceeds $25,000. Police Chief Hosfelt advised members that the Police Department is currently waiting for the final specifications for the computer servers from the vendor and will place the order immediately upon receipt to meet the end of fiscal year deadline for these funds. Staff recommended approval of the expenditure authorization for the Core Law Enforcement Server Replacements. Mr. Bonar moved for approval of staff’s recommendation, seconded by Mrs. Russell and carried by a unanimous roll call vote. EVALUATION OF BIDS - FY 2011 STREET PROGRAM In conjunction with the City of Dover’s Capital Investments Plan, Mr. Anthony DePrima, City Manager, advised members that it is proposed to rehabilitate various pavement sections throughout the City of Dover during Fiscal Year 2011. He stated that the following locations were included in the proposed scope of work to be completed under the FY 2011 Street Program: Washington Street Susan Place Delaware Avenue Alley S. Turnberry Lane Mitscher Road Hiawatha Lane Reed Street (State Street to Kings Highway) Three (3) contractors submitted unit price bids for the proposed work to be performed. Based on the proposed quantities, the estimated contract values are as follows: 1) Daisy Construction Co. New Castle, Delaware - $638,232.95; 2) George & Lynch, Inc. Dover, Delaware - $721,001.31; and 3) David A. Bramble, Inc. Chestertown, MD - $732,447.20. Mr. DePrima stated that the FY 2011 Street Program contract documents allow staff to alter quantities up to 35% without changes to unit prices; therefore, the contract final value may be adjusted to reflect all available funding. He reminded members that Daisy Construction Co. was the

CITY COUNCIL MEETING OF JUNE 28, 2010 PAGE 29 City’s contractor for the last Street Program and their quality of work was more than satisfactory. In addition, their billing and certified payroll was submitted in a timely manner and well coordinated with the Public Works Inspector. Staff recommended awarding a unit price contract for the FY 2011 Street Program to Daisy Construction Co. based on the unit prices for each work item as provided. The scope of work for the program will be altered to reflect the funding that has been secured to complete each location. The Public Services Manager may add or delete from the contract based on available funding throughout the contract period and inform the City Manager of such additions or deletions. All work will be paid for at the unit prices bid for work completed and accepted by the City of Dover. The total work authorized under this contract will not exceed the available funding. It was noted that the amount of funding available for this project is $743,001.14. Responding to Mr. Ruane, Mr. DePrima stated that the City’s Street Program is much less complicated than a project such as the Governors Avenue Project currently being conducted by the State of Delaware, which may be why Daisy Construction has been able to complete the City’s projects in a timely manner. Mr. McGiffin moved for approval of staff’s recommendation, seconded by Mr. Salters and carried by a roll call vote of eight (8) yes and one (1) no (Mr. Bonar). EVALUATION OF BIDS - MISCELLANEOUS CONCRETE REPAIR PROGRAM In conjunction with the City of Dover’s Capital Investments Plan, Mr. DePrima, City Manager, advised members that it is proposed to use a contractor to remove and replace approximately 6,148 square feet of miscellaneous concrete work at various tentative locations throughout the City of Dover during Fiscal Year 2011. He assured members that staff has visited each of the tentative work locations and has prepared a work plan and bid specification package for these repairs. He stated that bids were solicited, ten (10) contractors submitted unit price bids for the work to be performed, and the low bid was received from Melvin Ray’s Masonry, Marydel, in the amount of $30,175.50. Mr. DePrima indicated that if the contractor performs well on the scope of work identified in the bid package, it would be staff’s intention to expand the scope of work to expend $40,000 - $45,000 on the contracted work. Staff recommended awarding a unit price contract for the FY 2011 Miscellaneous Concrete Repair Program based on the unit prices for each work item to Melvin Ray’s Masonry in the estimated amount of $30,175.50, based on the tentative scope of work. All work will be paid for at the unit prices bid for work completed and accepted by the City of Dover. Staff intends to increase the value of the contract to $40,000 - $45,000, based on the unit prices received. Mr. Bonar relayed concerns with the quality of work performed by Melvin Ray’s Masonry. Mr. Salters moved for approval of staff’s recommendation, seconded by Mr. Leary and carried by a roll call vote of eight (8) yes and one (1) no (Mr. Bonar).

CITY COUNCIL MEETING OF JUNE 28, 2010 PAGE 30 ELECTION TO FILL VACANCIES - ROBBINS HOSE COMPANY - TERMS TO EXPIRE DECEMBER 31, 2010 (ALL POSITIONS UNOPPOSED) Fire Chief Christiansen advised members that he received resignations from Deputy Fire Chief Enright, First Assistant Fire Chief Carey, Fourth Assistant Fire Chief Mullaney, and Second Fire Line Captain Troubetaris. In accordance with the City Code and the By-Laws of the Robbins Hose Company, during the June 7, 2010 Regular Monthly Meeting, members of the Robbins Hose Company No. 1 nominated members to serve as Fire Line Officers with terms to expire December 31, 2010, as follows: Deputy Fire Chief - David Carey First Assistant Fire Chief - Timothy Mullaney, Jr. Fourth Assistant Fire Chief - Carl Troubetaris Second Fire Line Captain - Donald Stock By consent agenda, Mr. Salters moved for acceptance of the Fire Line Officers for Robbins Hose Company No. 1 as presented. The motion was seconded by Mr. McGiffin and carried by a unanimous roll call vote. APPOINTMENT RECOMMENDED BY MAYOR CAREY - DOVER MPO PUBLIC ADVISORY COMMITTEE - TWO (2) YEAR TERM TO EXPIRE JULY 2012 - DR. CARLTON L. CANNON, JR. (REAPPOINTMENT) Mayor Carey recommended the appointment of Dr. Carlton L. Cannon, Jr. to serve on the Dover MPO Public Advisory Committee for a two (2) year term to expire July 2012. By consent agenda, Mr. Salters moved for approval of the appointment as recommended by Mayor Carey, seconded by Mr. McGiffin and carried by a unanimous roll call vote. APPOINTMENTS RECOMMENDED BY MAYOR CAREY - BOARD OF ADJUSTMENT - THREE (3) YEAR TERMS TO EXPIRE JULY 2013 (REAPPOINTMENTS) Mayor Carey requested the following reappointments to the Board of Adjustment for three (3) year terms to expire July 2013: K.C. Sheth, Chairperson (Reappointment) William Hufnal (Reappointment) By consent agenda, Mr. Salters moved for approval of the reappointments to the Board of Adjustment, as recommended by Mayor Carey, seconded by Mr. McGiffin and carried by a unanimous roll call vote. FIRST READING - PROPOSED ZONING ORDINANCE AMENDMENTS Council President Hogan reminded the public that copies of the proposed ordinances are available at the entrance of the Council Chambers or can be obtained from the City Clerk's Office. Since the ordinances are amendments to the Zoning Code, a public hearing is required. Staff recommended referral of the amendments to the Planning Commission on July 19, 2010; and that a public hearing

CITY COUNCIL MEETING OF JUNE 28, 2010 PAGE 31 be set for the Regular Council Meeting of August 9, 2010, at 7:30 p.m., at which time final action by Council will take place. Mr. Salters moved to refer the amendments and set a public hearing before City Council for August 9, 2010 at 7:30 p.m. as suggested by staff. The motion was seconded by Mr. Bonar and unanimously carried. In accordance with Section 1-9 of the Dover Code, Council acknowledged the First Reading of the Zoning Ordinance Amendments as read by the City Clerk, by title only, as follows: > PROPOSED ORDINANCE #2010-18 - APPENDIX B - ZONING, ARTICLE 9 - BOARD OF ADJUSTMENT > PROPOSED ORDINANCE #2010-21 - RECREATIONAL AND OPEN SPACE (ROS) ZONE MAP AMENDMENTS FINAL READING - PROPOSED ORDINANCES The First Reading of the following proposed ordinances was accomplished during the Council Meeting of June 14, 2010. Mr. McGlumphy moved to suspend the rules to allow public testimony regarding the City’s Budget, seconded by Mrs. Williams. Mr. Leary moved to amend the motion to provide 20 minutes of total time for public testimony (three (3) minutes for each person), seconded by Mr. Salters. Mr. McGlumphy relayed concern with applying a time limit since this is the final presentation before City Council before final action is taken. The motion to amend the motion to provide 20 minutes of total time for public testimony was carried by a roll call vote of seven (7) yes and two (2) no (Mr. McGlumphy and Mrs. Williams). The motion to suspend the rules to allow a 20 minute time period for public testimony regarding the City's Budget was carried by a unanimous roll call vote (Mrs. Russell absent for this portion of the meeting). Council President Hogan declared the public hearing open. Mrs. Barbara Palmer, 917 Sunset Terrace, relayed opposition to the pay raises proposed for the three (3) administrative positions, noting that the salaries for each are currently in excess of $100,000. With the current economic situation, she noted that many employed individuals are not receiving any pay increase and many are losing their jobs. Ms. Andrea Pierce, 39 Par Haven Drive, indicated her opposition to the budget, feeling that the pay raises are excessive and that this is not the time for providing more money to those already highly compensated. She stated that the City of Dover does not need to have the highest paid City Manager

CITY COUNCIL MEETING OF JUNE 28, 2010 PAGE 32 in the State of Delaware. She noted that the State is also reinstating the monies taken from employees last year; however, they are not providing any salary increases. She questioned the need for a new vehicle for the Mayor and did not feel her taxes should pay for the new car. She also questioned the need for the additional position, Assistant Librarian, since this would allow the Library Director to concentrate efforts for fundraising for the new library. It was her opinion that fundraising should be accomplished on personal time and that tax payers should not pay for employees to conduct fund raising. (Former City of Dover Mayor) James Hutchison, 15 Gleneagles Court, stated his opposition to providing pay increases at this time and requested that members reconsider this action. He noted that, during these economic times, the majority in the business community are being laid off, losing jobs, etc., and felt that it is wrong for the City to consider providing pay increases. Ms. Beth Miller, Attorney at Morris James, LLC, advised members that she practices tax law and represents several business owners, landlords, and tenants. She stated that the proposed tax increase is causing concerns, noting that if taxes are increased, jobs will be cut, unemployment will increase, and costs will increase. She felt that a tax increase will not serve anyone or do any good except for those that would be receiving a salary increase. Mr. Robert Tudor, 706 E. Division Street, suggested that members are not taking into consideration what is happening throughout the United States. He also suggested that members should get a copy of Time magazine, which includes an article regarding municipalities that are going bankrupt. He requested that the salary increases be denied and that the budget be reviewed for other savings. Mr. John Stant, 60 North Fairfield Drive, stated that he owns commercial properties and a business (Uno Chicago Grill) and that he is faced with high utilities and an increase in property assessment. He noted that his business currently has 70 employees, none of these employees will receive a salary increase, and if the economy continues to spiral, there will be less than 70 employees. He requested that members give consideration as to the effect that their actions will have on the community, explaining that if the small businesses in the City begin to fold, which has already been occurring, there will not be sufficient taxes collected to keep the City in business. He suggested that members consider what they can do to help small businesses in order for them to keep giving to the City. Ms. Nicole Colbert, 303A West Loockerman Street, stated that she is an unemployed, single mom and is very concerned about the proposed salary increases. She explained the difficulties of being unemployed, noting that she and her children are now facing eviction and that she is not the only individual facing this type of situation. Although she had attempted to contact each member of Council by either phone call, letter, or email, she thanked the only member who responded, Mr. McGlumphy, and relayed appreciation for his assistance. Ms. Sherry Henley, 6353 Carpenter Bridge Drive in Felton, stated that she is speaking on behalf of the Legislative Affairs Committee for the Chamber of Commerce. She noted the many concerns that have been relayed regarding the proposed increases in property taxes, business license fees, cost of services, etc., and requested that members reconsider their vote.

CITY COUNCIL MEETING OF JUNE 28, 2010 PAGE 33 Mr. Ronald Short, Roosevelt Avenue, relayed his opposition to any proposed salary increases, noting that he retired 2½ years ago and has not received an increase in his pension. He advised members that his vehicle is a 1993 Chevrolet Van with 154,000 miles and collects social security. He requested that members reconsider their action regarding the budget. Mr. Karlton Schmidt, 102 Lotus Street, suggested that it is time to do more with less and that the City Manager should be challenged each spring to find more and more money in the preparation of the budget. He requested that members make the City Manager work for the people of the City of Dover. There being no one else wishing to speak, Council President Hogan declared the public hearing closed. It was noted that members of Council were provided a packet of correspondence received by the City Clerk’s Office related to the budget (as on file in the Office of the Clerk). Ordinance #2010-20 - Notification of Tax Rate Increase Over the Rolled Back Tax Rate [Required in accordance with 22 Delaware Code Section 1105(b)] Mr. McGiffin moved that the Final Reading of the Proposed Ordinance be acknowledged by title only, seconded by Mr. Salters and unanimously carried. Council President Hogan reminded members that the Proposed Ordinance will roll back the current tax rate of 33¢ to 31.08¢ and provides for a tax rate increase in the amount of 2.7¢, for a new tax rate of 33.78¢. Mr. McGiffin moved for adoption of Ordinance #2010-20, Notification of Tax Rate Increase Over the Rolled Back Tax Rate [Required in accordance with 22 Delaware Code Section 1105(b)], seconded by Mr. Ruane. By a roll call vote of five (5) yes and four (4) no (Mr. Bonar, Mr. McGlumphy, Mr. Leary, and Mrs. Williams), Council adopted Ordinance #2010-20, as follows: WHEREAS, the 2010/2011 fiscal year property tax rate for the City of Dover is $.33(thirty-three cents) per hundred of assessed value and the Tax Assessor reported that the total assessed value of property as of December 31, 2009 was $2,911,319,620 and that the Supplement Billings for April 2010 were $2,219,200 making the FY 2011 (2005 Assessed Value) base $2,913,538,820; and WHEREAS, upon completion of the re-evaluation completed in 2010, the Tax Assessor is reporting that the total assessed value in 2009/2010 to be $3,093,511,459; and WHEREAS, Delaware State Law: 22 Delaware Code Section 1105 (b) requires municipalities to calculate a "rolled-back" tax rate so as to provide the same tax revenue as was levied during the prior fiscal year and to state that the percent, if any, by which the property tax rate to be levied exceeds the "rolled-back" property tax rate.

CITY COUNCIL MEETING OF JUNE 28, 2010 PAGE 34 NOW THEREFORE, BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE CITY OF DOVER, IN COUNCIL MET: That the City of Dover "rolled-back" tax rate is $.3108 per hundred of assessed value, and 2010/2011 tax rate is to be set at $.3378 per hundred of assessed value, the increase over the rolled-back tax rate being 8.68%. ADOPTED: JUNE 28, 2010 Ordinance #2010-19 - Budget Ordinances - 2010/2011 City of Dover Budget Mr. McGiffin moved that the Final Reading of the Proposed Ordinance be acknowledged by title only, seconded by Mr. Salters and unanimously carried. Mr. McGiffin moved for adoption of Ordinance #2010-19 - 2010/11 City of Dover Budget (Exhibit #1). The motion was seconded by Mr. Salters and carried by a roll call vote of five (5) yes and four (4) no (Mr. Bonar, Mr. McGlumphy, Mr. Leary, and Mrs. Williams). Downtown Dover Business Improvement District - Cash Receipts/Budget FY 2010-2011 Mr. McGiffin moved that the Final Reading of the proposed ordinance be acknowledged by title only, seconded by Mr. Salters and unanimously carried. Mr. McGiffin moved for adoption of the Downtown Dover Business Improvement District - Cash Receipts/Budget FY 2010-2011 Ordinance (Exhibit #2). The motion was seconded by Mr. Salters and carried by a roll call vote of five (5) yes and four (4) no (Mr. Bonar, Mr. McGlumphy, Mr. Leary, and Mrs. Williams). Proposed Ordinance #2010-13 - Furloughs and Pension Plan Closing Mr. McGiffin moved that the Final Reading of the Proposed Ordinance be acknowledged by title only, seconded by Mr. Leary and unanimously carried. Mr. McGiffin moved for adoption of Ordinance #2010-13, seconded by Mr. Salters and by a unanimous roll call vote, Council adopted the following ordinance: BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE CITY OF DOVER, IN COUNCIL MET: That Chapter 2 – Administration, Article IV – Officers and Employees, Division 7 – General Employee Pension Plan, Subdivision I - In General, Section 2-321 - Definitions, be amended to read as follows: Sec. 2-321. Definitions. The following words, terms and phrases, when used in this division, shall have the meanings ascribed to them in this section, except where the context clearly indicates a different meaning:

CITY COUNCIL MEETING OF JUNE 28, 2010 PAGE 35 Accumulated contributions means the aggregate contributions made by a member under the plan, with interest thereon at the rate of five percent per annum, compounded annually from the last day of the plan year in which such contribution was made to the earlier of the date of commencement of retirement income or the date on which contributions are payable pursuant to the provisions of the plan. Continuous service means regularly employed without interruption, except for allowable interruptions aggregating not over five years. Allowable interruptions shall include: (1) Leaves of absence granted to employees for illness, research, travel, training or study; (2) Employment in an office to which the employee had been elected by popular vote at a regular city election; (3) Involuntary severance which shall include a required leave of absence on account of maternity, and the employee returns to active employment at the end of that leave of absence. To the extent required by federal law, if an employee leaves the employ of the city to enter the military service of the United States and, upon his discharge from service, is reemployed by the city at a time when his reemployment rights are protected by federal law, the employee shall be considered to have been employed by the city during his period of military service and shall be credited with continuous service which he would have been credited with as an employee of the city but for his military service. The period for which disability pension benefits shall have been paid shall be considered as an allowable interruption which is permitted in addition to the allowable interruptions aggregating not over five years in determining subsequent eligibility for retirement benefits under the terms of this division. Defined Benefit Pension plan and plan mean the city's general employee pension plan. Eligible employee means any person regularly employed in rendering service to the city on a full-time, permanent basis, who is not participating in any other retirement plan to which the city contributes for them, and whose compensation is paid directly by the city. An employee will be considered a full-time employee if he regularly works 40 hours each week. Group annuity contract means the group annuity contract entered into between an insurance company and the pension board of trustees. Participant means any eligible employee of the city who has met all of the requirements for participation in the pension plan as defined in this section and who has satisfied all of the conditions and requirements set forth in this division. Pension board means the pension board of trustees.

CITY COUNCIL MEETING OF JUNE 28, 2010 PAGE 36 Plan year means the period of one year, commencing on any July 1 and ending immediately prior to the following July 1. Retired participant means a participant of the plan who has terminated service and is eligible to receive retirement income under this division. BE IT FURTHER ORDAINED THAT Chapter 2 – Administration, Article IV – Officers and Employees, Division 7 – General Employee Pension Plan, Subdivision I - In General, Section 2-323 - Eligibility of participant, be amended by inserting the text indicated in bold, blue, italics and deleting the text indicated in bold, red strikeout as follows: Sec. 2-323. Eligibility of participant. Each eligible employee not drawing any retirement benefits from the mayor and city council as of January 1, 1967, shall, upon compliance with the provisions of this division, become a pension plan participant under this division, commencing on July 1, 1967, or at any subsequent time immediately upon his employment. Effective September 28, 2009 the defined benefit plan is closed to new participants. BE IT FURTHER ORDAINED THAT Chapter 2 – Administration, Article IV – Officers and Employees, Division 7 – General Employee Pension Plan, Subdivision I - In General, Section 2-324 - Participation mandatory; exceptions, be amended by inserting the text indicated in bold, blue, italics and deleting the text indicated in bold, red strikeout as follows: Sec. 2-324. Participation mandatory; exceptions. The pension plan shall not be construed to give any employee the right to be retained in the employ of the city. All new employees hired after July 1, 1991, shall be required, as a condition of employment, to join the defined benefit plan or the defined contribution plan. All new employees hired after September 29, 2009 are required to join the defined contribution pension plan. All participants of the defined benefit pension plan as of September 28, 2009 will remain members of either plan thereafter unless they shall leave the employment of the city, retire, pass away, or elect to terminate their participation in the defined benefit plan and become a member of the defined contribution pension plan as defined in Section 2-341(f). COUNCIL MEMBERS ANNOUNCEMENTS Mr. McGlumphy thanked the citizens for attending the meeting. Mr. Bonar also thanked the citizens for their participation and felt that there could have been more cuts to the budget. He thanked staff for the work conducted on the City’s budget. Mr. McGiffin stated that the African American Festival was held this past weekend and that it was a successful event. He announced that every one should mark their calendar for the next African American Festival, which will be held on June 25, 2011.

CITY COUNCIL MEETING OF JUNE 28, 2010 PAGE 37 Mayor Carey congratulated Mr. Salters, noting that this was the 20th year for the African American Festival. He also congratulated Mr. Bruce Pringle, relayed appreciation for the service he has provided the City and its citizens, and wished him well in his retirement. Mrs. Williams relayed appreciation for the citizens attending the meeting and reminded all that the budget can be vetoed by the Mayor. Mr. Salters moved for adjournment, seconded by Mr. McGiffin and unanimously carried. Meeting Adjourned at 8:35 P.M. TRACI A. McDOWELL CITY CLERK All orders, ordinances, and resolutions adopted by City Council during their Regular Meeting of June 28, 2010, are hereby approved (with the exception of the following motion: adoption of the following 2010/2011 City of Dover Budget Ordinances - General Fund - Cash Receipts and Budget; Water/Wastewater Fund - Revenue and Budget; and Electric Revenue Fund - Revenue and Budget). CARLETON E. CAREY, SR. MAYOR /TM/jg S:\AGENDAS-MINUTES-PACKETS-PRESENTATIONS-ATT&EXH\Council-Minutes\2001-2010\2010\06-28-2010.wpd Exhibits Attached to Original Minutes and File Copy Exhibit #1 - Ordinance #2010-19 - 2010/11 City of Dover Budget Exhibit #2 - Downtown Dover Business Improvement District - Cash Receipts/Budget FY 2010-2011 Ordinance

EXHIBIT #1 Council Meeting of 06/28/2010 FINAL READING CITY OF DOVER ORDINANCE # 2010‐19 1 2010‐2011 BUDGET ORDINANCES 2 3 GENERAL FUND ‐ CASH RECEIPTS AND BUDGET FOR 2010‐2011 4 5 BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE CITY OF DOVER, IN COUNCIL MET: 6 7 The amount hereinafter named aggregating Thirty Seven Million Seven Hundred Nine Thousand Nine Hundred Sixty Six 8 dollars ($37,709,966)or so much thereof as may be necessary are hereby appropriated from current revenues and 9 other funds for the use by several departments of the Municipal Government for the fiscal year beginning July 1, 2010 10 and ending June 30, 2011: 11 2009/10 2010/11 12 RECEIPTS REVISED BUDGET 13 PRIOR YEAR BALANCE $ 3,628,890 $ 2,277,575 14 FINES AND POLICE REVENUE 520,000 536,502 15 911 FEE 45,000 45,000 16 INVESTMENT INCOME 253,000 224,000 17 LIBRARY REVENUES 66,508 64,189 18 KENT COUNTY BOOK REIMBURSEMENT 460,000 460,000 19 BUSINESS LICENSES 1,465,000 1,523,675 20 PERMITS AND OTHER LICENSES 934,000 934,000 21 DEMOLITION REVENUE ‐ ‐ 22 MISCELLANEOUS CHARGES 54,250 54,250 23 POLICE EXTRA DUTY 300,000 300,000 24 PROPERTY TAXES 10,155,246 10,982,634 25 BID REVENUE 52,692 52,692 26 RECREATION REVENUE 141,500 141,500 27 FRANCHISE FEE 486,000 486,000 28 TRASH FEES 1,201,000 2,244,511 29 DSWA TRASH FEE REBATE 160,000 143,000 30 RENT REVENUE ‐ GARRISON FARM 41,535 87,000 31 COURT OF CHANCERY FEES 645,000 645,000 32 RECEIPTS SUBTOTAL 20,609,621 21,201,528 33 34 INTERFUND SERVICE RECEIPTS 35 INTRAFUND SERVICE RECEIPTS WATER/WASTEWATER 968,999 975,872 36 INTRAFUND SERVICE RECEIPTS ELECTRIC 3,379,975 3,387,873 37 INTERFUND SERVICE RECEIPTS SUBTOTAL 4,348,974 4,363,745 38 39 GRANTS 40 POLICE RELATED 100,000 138,350 41 CAPITAL SCHOOL DISTRICT REVENUE 73,500 73,500 42 POLICE PENSION GRANT 620,000 620,000 43 RECREATION GRANTS ‐ ‐ 44 MISC GRANT REVENUE ‐ ‐ 45 HOMELAND SECURITY GRANT ‐ ‐ 46 SALE OF ASSETS ‐ ‐ 47 GRANTS SUBTOTAL 793,500 831,850 48 49 TRANSFERS FROM ‐ 50 TRANSFER TAX 830,000 1,000,000 51 MUNICIPAL STREET AID ‐ 526,843 52 CIVIL TRAFFIC PENALTIES 750,000 930,000 53 WATER/WASTEWATER 548,020 ‐ 54 ELECTRIC 6,758,100 8,856,000 55 PARKLAND RESERVE ‐ ‐ 56 LIBRARY RESERVE ‐ ‐ 57 CAPITAL ASSET RESERVE ‐ ‐ 58 WORKER'S COMP FUND 350,000 ‐ 59 CONTINGENCY FUND 9,236,120 11,312,843 60 TRANSFERS FROM SUBTOTAL 61 $ 34,988,215 $ 37,709,966 62 TOTALS 63 1

64 GENERAL FUND CONTINUED ‐ CASH RECEIPTS AND BUDGET FOR 2010‐2011 65 2009/10 2010/11 66 DEPARTMENT EXPENSES REVISED BUDGET 67 CITY CLERK $ 278,229 $ 287,403 68 COUNCIL 113,934 142,619 69 TAX ASSESSOR 565,924 197,249 70 FIRE 718,058 709,862 71 GROUNDS MAINTENANCE 1,104,457 1,055,557 72 LIBRARY 1,128,481 1,126,227 73 RECREATION 754,140 789,648 74 LIFE SAFETY 508,320 501,835 75 CODE INFORCEMENT 359,064 276,481 76 PLANNING 400,895 424,836 77 INSPECTIONS 509,371 494,807 78 ECONOMIC DEVELOPMENT 223,350 247,488 79 POLICE 12,307,566 12,458,373 80 POLICE EXTRA DUTY 449,516 449,516 81 STREETS 895,084 802,029 82 SANITATION 2,078,770 2,347,344 83 CITY MANAGER 566,474 569,096 84 INFORMATION TECHNOLOGY 797,071 748,214 85 FINANCE 781,791 827,169 86 PUBLIC SERVICES ‐ ADMINISTRATION 354,640 369,752 87 FACILITIES MANAGEMENT 996,515 990,757 88 CENTRAL SERVICES 714,165 669,977 89 FLEET MAINTENANCE 712,645 761,929 90 CUSTOMER SERVICES 889,919 869,404 91 HUMAN RESOURCES 430,037 358,890 92 MAYOR 70,699 90,291 93 DEPARTMENT SUBTOTALS 28,709,115 28,566,753 94 OTHER EXPENSES 95 DEBT SERVICE 328,410 331,800 96 TRANSFER TO CONTINGENCY ‐ ‐ 97 DSWA RECYCLING PROGRAM ‐ ‐ 98 INSURANCE 600,000 600,000 99 RETIREES HEALTH CARE 1,014,820 1,297,509 100 RETIREES PAYMENTS ‐ ‐ 101 UNCOLLECTIBLES ‐ TRASH AND OTHER 10,000 10,000 102 LOSS ON SALE OF ASSET 42,993 ‐ 103 STORM EMERGENCY 350,000 ‐ 104 STREET LIGHTS 985,000 985,000 105 OTHER EXPENSE SUBTOTAL 3,331,223 3,224,309 106 GRANTS 107 IT EMERGENCY PREPAREDNESS PLAN ‐ ‐ 108 GRANTS SUBTOTAL ‐ ‐ 109 TRANSFERS 110 TRANSFER TO OPEB ‐ ‐ 111 TRANSFER TO PENSION UNFUNDED LIABILITY ‐ 995,000 112 TRANSFER TO POLICE PENSION UNFUNDED LIABILITY 95,000 113 TRANSFER TO PENSION COLA ‐ ‐ 114 TRANSFER TO POLICE PENSION FUND 620,000 620,000 115 TRANSFER TO CAPITAL ASSET RESERVE ‐ ‐ 116 TRANSFER TO CAPITAL FUND ‐ PROJECTS 44,802 1,307,839 117 TRANSFER TO CAPITAL FUND ‐ RESERVE ‐ ‐ 118 TRANSFER TO STREET PROGRAM ‐ 119 TRANSFER TO PARKLAND/RECREATION RESERVE ‐ 120 TRANSFER TO LIBRARY RESERVE ‐ 121 TRANSFER TO CDBG FUND 5,500 6,000 122 TRANSFER TO VERIZON RESERVE ‐ 123 INVENTORY WRITE OFFS ‐ ‐ 124 TRANSFERS SUBTOTAL 670,302 3,023,839 125 CURRENT YEAR BALANCE 2,277,575 2,895,065 126 127 TOTALS $ 34,988,215 $ 37,709,966 128 129 The City Manager is hereby authorized, without further approval of the City Council, to make 130 inter‐departmental transfers of up to five percent of the amount hereinafter appropriated to any 131 department except that the City Manager shall not make any transfers prohibited by City 132 Procedure #F306 and/or #F306ADD. 2

133 2010‐2011 BUDGET ORDINANCES ‐ CONTINUED 134 135 GOVERNMENTAL CAPITAL PROJECTS FUND 136 137 CASH RECEIPTS/REVENUES AND BUDGET FOR 2010‐2011 138 139 BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE CITY OF DOVER, IN COUNCIL MET: 140 141 The amount hereinafter named aggregating Eight Million Two Hundred Twenty Nine Thousand Two 142 Hundred Fifty Seven dollars ($8,229,257) or so much thereof as may be necessary are hereby 143 appropriated from current revenues and other funds for the use by several departments of the 144 Municipal Government for the fiscal year beginning July 1, 2010 and ending June 30, 2011: 145 146 CASH RECEIPTS 147 2009/10 2010/11 148 REVISED BUDGET 149 BEGINNING BALANCE ‐ PROJECTS $ 462,693 $ 65,479 150 STATE GRANTS 780,290 3,343,520 151 INTEREST EARNINGS 2,700 10,900 152 INCOME FROM SALE OF ASSETS 29,200 ‐ 153 RECREATION GRANTS ‐ ‐ 154 POLICE GRANTS ‐ 18,000 155 HOMELAND SECURITY GRANTS ‐ ‐ 156 LIBRARY BOND ISSUE/CONTRIBUTIONS 602,384 1,000,000 157 TRANSFER FROM GENERAL FUND FOR PROJECTS 44,802 1,307,839 158 TRANSFER FROM PARKLAND RESERVE (JWP CNTR) 40,000 ‐ 159 TRANSFER FROM LIBRARY RESERVE 177,906 2,343,519 160 GIFTS/DONATIONS (RECREATION) ‐ ‐ 161 PARKLAND RESERVE RECEIPT ‐ ‐ 162 TRANSFER FROM CAPITAL ASSET RESERVE ‐ 140,000 163 164 TOTALS $ 2,139,975 $ 8,229,257 165 166 3

167 GOVERNMENTAL CAPITAL PROJECTS FUND ‐ CONTINUED 168 169 CASH RECEIPTS/REVENUES AND BUDGET FOR 2010‐2011 170 171 EXPENSE SUMMARY 172 173 2009/10 2010/11 174 DEPARTMENT EXPENSES REVISED BUDGET 175 CITY CLERK $ ‐ $ ‐ 176 COUNCIL ‐ ‐ 177 TAX ASSESSOR ‐ ‐ 178 FIRE 292,210 288,210 179 GROUNDS MAINTENANCE ‐ 63,675 180 LIBRARY 1,560,580 6,687,039 181 RECREATION 70,000 45,000 182 LIFE SAFETY ‐ ‐ 183 PLANNING ‐ ‐ 184 INSPECTIONS ‐ ‐ 185 ECONOMIC DEVELOPMENT ‐ ‐ 186 POLICE 94,706 282,380 187 STREETS 50,000 481,055 188 SANITATION ‐ 246,075 189 CITY MANAGER ‐ ‐ 190 INFORMATION TECHNOLOGY 7,000 12,000 191 FINANCE ‐ ‐ 192 PUBLIC SERVICES ‐ ADMINISTRATION ‐ ‐ 193 FACILITIES MANAGEMENT ‐ ‐ 194 CENTRAL SERVICES ‐ ‐ 195 FLEET MAINTENANCE ‐ ‐ 196 CUSTOMER SERVICES ‐ ‐ 197 HUMAN RESOURCES ‐ ‐ 198 MAYOR ‐ 83,323 199 DEPARTMENT SUBTOTAL 2,074,496 8,188,757 200 TRANSFERS 201 TRANSFER TO CAPITAL ASSET RESERVE ‐ ‐ 202 TRANSFER TO PARKLAND RESERVE ‐ ‐ 203 TRANSFER TO LIBRARY RESERVE ‐ ‐ 204 TRANSFER TO GENERAL FUND ‐ ‐ 205 TRANSFER SUBTOTAL ‐ ‐ 206 CURRENT YEAR BALANCE 65,479 40,500 207 208 TOTALS $ 2,139,975 $ 8,229,257 209 210 The City Manager is hereby authorized, without further approval of the City Council, to make 211 inter‐departmental transfers of up to five percent of the amount hereinafter appropriated to any 212 department except that the City Manager shall not make any transfers prohibited by City 213 Procedure #F306 and/or #F306ADD. 4

214 2010‐2011 BUDGET ORDINANCES ‐ CONTINUED 215 216 GENERAL FUND CONTINGENCY 217 218 CASH RECEIPTS/REVENUES AND BUDGET FOR 2010‐2011 219 220 The amount hereinafter named aggregating Four Hundred Seventeen Thousand Nine Hundred Seventy 221 One dollars ($417,971) or so much thereof as may be necessary are hereby appropriated from current 222 revenues and other funds for the use by several departments of the Municipal Government for the 223 fiscal year beginning July 1, 2010 and ending June 30, 2011: 224 225 CASH RECEIPTS 226 2009/10 2010/11 227 REVISED BUDGET 228 BEGINNING BALANCE $ 744,871 $ 394,871 229 INTEREST EARNINGS ‐ 23,100 230 TRANSFER FROM GENERAL FUND ‐ ‐ 231 232 TOTALS $ 744,871 $ 417,971 233 234 EXPENSE SUMMARY 235 2009/10 2010/11 236 REVISED BUDGET 237 TRANSFER TO GENERAL FUND $ 350,000 $ ‐ 238 TRANSFER TO OPEB ‐ ‐ 239 TRANSFER TO LIBRARY FUND ‐ ‐ 240 CARRY FORWARD TO NEXT YEAR 394,871 417,971 241 242 TOTALS $ 744,871 $ 417,971 243 244 The City Manager is hereby authorized, without further approval of the City Council, to make 245 inter‐departmental transfers of up to five percent of the amount hereinafter appropriated to any 246 department except that the City Manager shall not make any transfers prohibited by City 247 Procedure #F306 and/or #F306ADD. 5

248 2010‐2011 BUDGET ORDINANCES ‐ CONTINUED 249 250 GENERAL CAPITAL ASSET REPLACEMENT FUND 251 252 CASH RECEIPTS/REVENUES AND BUDGET FOR 2010‐2011 253 254 BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE CITY OF DOVER, IN COUNCIL MET: 255 256 The amount hereinafter named aggregating Two Hundred Fifty Six Thousand Four Hundred Sixty Five 257 dollars ($256,465) or so much thereof as may be necessary are hereby appropriated from current 258 revenues and other funds for the use by several departments of the Municipal Government 259 for the fiscal year beginning July 1, 2010 and ending June 30, 2011: 260 261 CASH RECEIPTS 262 2009/10 2010/11 263 REVISED BUDGET 264 BEGINNING BALANCE $ 241,965 $ 248,965 265 INTEREST EARNINGS 7,000 7,500 266 TRANSFER FROM GOVERNMENTAL CAPITAL FUND ‐ ‐ 267 TRANSFER FROM GENERAL FUND ‐ ‐ 268 269 TOTALS $ 248,965 $ 256,465 270 271 EXPENSE SUMMARY 272 2009/10 2010/11 273 REVISED BUDGET 274 TRANSFER TO GENERAL FUND $ ‐ $ ‐ 275 FOR CAPITAL ITEMS ‐ ‐ 276 TRANSFER TO GOVERNMENTAL CAPITAL FUND ‐ 140,000 277 CARRY FORWARD TO NEXT YEAR 248,965 116,465 278 279 TOTALS $ 248,965 $ 256,465 280 281 The City Manager is hereby authorized, without further approval of the City Council, to make 282 inter‐departmental transfers of up to five percent of the amount hereinafter appropriated to any 283 department except that the City Manager shall not make any transfers prohibited by City 284 Procedure #F306 and/or #F306ADD. 6

285 2010‐2011 BUDGET ORDINANCES ‐ CONTINUED 286 287 MUNICIPAL STREET AID FUND 288 289 CASH RECEIPTS/REVENUES AND BUDGET FOR 2010‐2011 290 291 BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE CITY OF DOVER, IN COUNCIL MET: 292 293 The amount hereinafter named aggregating Five Hundred Twenty Seven Thousand Four Hundred Seventy 294 One dollars ($527,471) or so much thereof as may be necessary are hereby appropriated from current 295 revenues and other funds for the use by several departments of the Municipal Government for the 296 fiscal year beginning July 1, 2010 and ending June 30, 2011: 297 298 CASH RECEIPTS 299 2009/10 2010/11 300 REVISED BUDGET 301 BEGINNING BALANCE $ 428 $ 428 302 STATE GRANT ‐ 526,843 303 INTEREST EARNED ‐ 200 304 305 TOTALS $ 428 $ 527,471 306 307 308 BUDGET SUMMARY 309 2009/10 2010/11 310 REVISED BUDGET 311 TRANSFER TO GENERAL FUND $ ‐ $ 526,843 312 CURRENT YEAR BALANCE 428 628 313 314 TOTALS $ 428 $ 527,471 315 316 The City Manager is hereby authorized, without further approval of the City Council, to make 317 inter‐departmental transfers of up to five percent of the amount hereinafter appropriated to any 318 department except that the City Manager shall not make any transfers prohibited by City 319 Procedure #F306 and/or #F306ADD. 7

320 2010‐2011 BUDGET ORDINANCES ‐ CONTINUED 321 322 WATER/WASTEWATER FUND 323 324 REVENUES AND BUDGET FOR 2010‐2011 325 326 BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE CITY OF DOVER, IN COUNCIL MET: 327 328 The amount hereinafter named aggregating Twelve Million Seven Hundred Thirty Eight Thousand Two Hundred 329 Thirty Seven dollars ($12,738,237) or so much thereof as may be necessary are hereby appropriated from current 330 revenues and other funds for the use by several departments of the Municipal Government for the 331 fiscal year beginning July 1, 2010 and ending June 30, 2011: 332 333 2009/10 2010/11 334 BASE REVENUE REVISED BUDGET 335 PRIOR YEAR BALANCE ‐ WATER $ 659,584 $ 943,545 336 PRIOR YEAR BALANCE ‐ WASTEWATER 327,614 585,053 337 PRIOR YEAR BALANCE ‐ KCSA (397,473) (1,632,876) 338 WATER FEES 4,130,000 4,206,700 339 WASTEWATER FEES 2,700,000 3,308,300 340 WASTEWATER ADJUSTMENT FEES 3,000,000 4,275,600 341 WATER TANK SPACE LEASING 293,669 299,400 342 SEWER IMPACT FEES 320,000 323,000 343 WATER IMPACT FEES 250,000 357,000 344 INTEREST ‐ WATER 900 680 345 INTEREST ‐ WASTEWATER 1,100 835 346 MISCELLANEOUS SERVICE FEE 71,000 71,000 347 REVENUE SUBTOTAL 11,356,394 12,738,237 348 349 GRANTS AND REIMBURSEMENTS 350 STATE REIMBURSEMENT ‐ ‐ 351 GRANT REVENUE ‐ ‐ 352 GRANTS AND REIMBURSEMENTS SUBTOTAL ‐ ‐ 353 354 TRANSFERS FROM 355 TRANSFER FROM CAPITAL ASSET RESERVE ‐ ‐ 356 TRANSFER FROM CONTINGENCY ‐ ‐ 357 TRANSFERS FROM SUBTOTAL ‐ ‐ 358 359 TOTALS $ 11,356,394 $ 12,738,237 8

360 WATER/WASTEWATER FUND ‐ CONTINUED 361 362 REVENUES AND BUDGET FOR 2010‐2011 363 364 2009/10 2010/11 365 DIRECT EXPENSES REVISED BUDGET 366 ENGINEERING & INSPECTION $ 708,360 $ 642,878 367 WATER CONSTRUCTION 421,040 392,561 368 WATER DEPARTMENT 421,268 412,588 369 WATER TREATMENT PLANT 1,519,732 1,499,857 370 WASTEWATER DEPARTMENT 879,992 969,762 371 METER READING 71,350 ‐ 372 KENT COUNTY TREATMENT CHARGE 4,235,403 4,235,403 373 DIRECT EXPENDITURE SUBTOTAL 8,257,145 8,153,049 374 375 OTHER EXPENSES 376 DEBT SERVICE ‐ WATER 244,000 246,403 377 DEBT SERVICE ‐ WASTEWATER 216,000 316,198 378 RETIREES HEALTH CARE 134,680 177,427 379 INTRAFUND SERVICE FEES 1,250,827 1,275,314 380 ARBITRAGE PAYMENT 60/40 Water ‐ 381 OTHER EXPENSES SUBTOTAL 1,845,507 2,015,342 382 383 TRANSFER TO 384 GENERAL FUND FROM WATER 231,459 ‐ 385 GENERAL FUND FROM WASTEWATER 316,561 ‐ 386 WATER IMP AND EXT 500,000 500,000 387 WASTEWATER IMP AND EXT 200,000 500,000 388 TRANSFER TO OPEB ‐ ‐ 389 TRANSFER TO PENSION UNFUNDED LIABILITY ‐ 372,000 390 TRANSFER TO PENSION COLA ‐ ‐ 391 EWER IMPACT FEE RESERVE 104,000 6,802 392 WATER IMPACT FEE RESERVE 6,000 110,597 393 CAPITAL ASSET RESERVE WATER ‐ 100,000 394 CAPITAL ASSET RESERVE WASTEWATER ‐ 100,000 395 TRANSFER TO SUBTOTAL 1,358,020 1,689,399 396 397 CURRENT YEAR BALANCES 398 CURRENT YEAR BALANCE WATER 943,545 1,347,009 399 CURRENT YEAR BALANCE WASTEWATER 585,053 1,126,117 400 CURRENT YEAR BALANCE KCSA (1,632,876) (1,592,679) 401 CURRENT YEAR BALANCE SUBTOTALS (104,278) 880,447 402 403 TOTALS $ 11,356,394 $ 12,738,237 404 405 The City Manager is hereby authorized, without further approval of the City Council, to make 406 inter‐departmental transfers of up to five percent of the amount hereinafter appropriated to any 407 department except that the City Manager shall not make any transfers prohibited by City 408 Procedure #F306 and/or #F306ADD. 9

409 2010‐2011 BUDGET ORDINANCES ‐ CONTINUED 410 411 WATER/WASTEWATER IMPROVEMENT & EXTENSION FUND 412 413 CASH RECEIPTS/REVENUES AND BUDGET FOR 2010‐2011 414 415 BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE CITY OF DOVER, IN COUNCIL MET: 416 417 The amount hereinafter named aggregating Five Million Five Hundred Forty Five Thousand Three Hundred Thirty Nine 418 dollars ($5,545,339) or so much thereof as may be necessary are hereby appropriated from current revenues 419 and other funds for the use by several departments of the Municipal Government for the fiscal year beginning 420 July 1, 2010 and ending June 30, 2011: 421 422 CASH RECEIPTS 423 2009/10 2010/11 424 REVISED BUDGET 425 PRIOR YEAR BALANCE ‐ WATER $ 1,631,844 $ 743,431 426 PRIOR YEAR BALANCE ‐ WASTEWATER 625,152 257,168 427 PRIOR YEAR BOND PROCEED BALANCE SERIES 2009 ‐ ‐ 428 PRIOR YEAR BOND PROCEEDS ‐ WASTEWATER ‐ 286,500 429 BOND PROCEEDS ‐ WATER ‐ ‐ 430 BOND PROCEEDS ‐ WASTEWATER ‐ 3,016,200 431 STATE LOAN FUND ‐ WATER 2,404,017 ‐ 432 STATE LOAN FUND ‐ WASTEWATER 5,942,481 ‐ 433 TRANS FR WATER/WASTEWATER FOR WATER 500,000 500,000 434 TRANS FR WATER/WASTEWATER FOR WASTEWATER 200,000 500,000 435 TRANSFER FROM IMPACT FEE RESERVE 518,230 242,040 436 TRANSFER FROM CAPITAL ASSET RESERVE ‐WATER ‐ ‐ 437 TRANSFER FROM CAPITAL ASSET RESERVE ‐WASTEWATER ‐ ‐ 438 MISCELLANEOUS RECEIPTS ‐ ‐ 439 INCOME FROM SALE OF ASSETS ‐ ‐ 440 DEVELOPER CONTRIBUTIONS ‐ ‐ 441 FEDERAL/STATE GRANTS 45,248 ‐ 442 INTEREST INCOME ‐ ‐ 443 444 TOTALS $ 11,866,972 $ 5,545,339 445 446 CASH RECEIPTS/REVENUES AND BUDGET FOR 2010‐2011 447 448 EXPENSE SUMMARY 449 2009/10 2010/11 450 REVISED BUDGET 451 WATER $ 3,753,430 $ 620,000 452 WASTEWATER 6,787,443 1,560,700 453 WATER TREATMENT PLANT 39,000 ‐ 454 WATER CONSTRUCTION ‐ ‐ 455 ENGINEERING & INSPECTION ‐ ‐ 456 TRANSFER TO IMPACT FEE RESERVE ‐ ‐ 457 CURRENT YEAR BALANCE ‐ WATER BOND ‐ ‐ 458 CURRENT YEAR BALANCE ‐ WASTEWATER BOND 286,500 2,153,140 459 CURRENT YEAR BALANCE ‐ WATER 743,431 623,431 460 CURRENT YEAR BALANCE ‐ WASTEWATER 257,168 588,068 461 462 TOTALS $ 11,866,972 $ 5,545,339 463 464 The City Manager is hereby authorized, without further approval of the City Council, to make 465 inter‐departmental transfers of up to five percent of the amount hereinafter appropriated to any 466 department except that the City Manager shall not make any transfers prohibited by City 467 Procedure #F306 and/or #F306ADD. 10

468 2010‐2011 BUDGET ORDINANCES ‐ CONTINUED 469 470 WATER/WASTEWATER CAPITAL ASSET RESERVE 471 472 CASH RECEIPTS/REVENUES AND BUDGET FOR 2010‐2011 473 474 BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE CITY OF DOVER, IN COUNCIL MET: 475 476 The amount hereinafter named aggregating Four Hundred Eighty Seven Thousand Seven Hundred Seventy 477 dollars ($487,770) or so much thereof as may be necessary are hereby appropriated from current revenues 478 and other funds for the use by several departments of the Municipal Government for the fiscal year 479 beginning July 1, 2010 and ending June 30, 2011: 480 481 CASH RECEIPTS 482 2009/10 2010/11 483 REVISED BUDGET 484 BEGINNING BALANCE ‐ WATER $ 205,611 $ 212,603 485 BEGINNING BALANCE ‐ WASTEWATER 64,560 66,767 486 INTEREST EARNINGS ‐ WATER 6,991 6,400 487 INTEREST EARNINGS ‐ WASTEWATER 2,208 2,000 488 TRANSFER FROM WATER/WASTEWATER FUND ‐ 100,000 489 TRANSFER FROM WATER/WASTEWATER CONTINGENCY ‐ 100,000 490 491 TOTALS $ 279,370 $ 487,770 492 493 EXPENSE SUMMARY 494 2009/10 2010/11 495 REVISED BUDGET 496 TRANSFER TO WATER/WASTEWATER I &E FUND $ ‐ $ ‐ 497 TRANSFER TO WASTEWATER I &E FUND ‐ ‐ 498 TRANSFER TO WATER/WASTEWATER ‐ ‐ 499 CARRY FORWARD TO NEXT YEAR WATER 212,603 319,003 500 CARRY FORWARD TO NEXT YEAR WASTEWATER 66,767 168,767 501 502 TOTALS $ 279,370 $ 487,770 503 504 The City Manager is hereby authorized, without further approval of the City Council, to make 505 inter‐departmental transfers of up to five percent of the amount hereinafter appropriated to any 506 department except that the City Manager shall not make any transfers prohibited by City 507 Procedure #F306 and/or #F306ADD. 11

508 2010‐2011 BUDGET ORDINANCES ‐ CONTINUED 509 510 WATER/WASTEWATER CONTINGENCY RESERVE 511 512 CASH RECEIPTS/REVENUES AND BUDGET FOR 2010‐2011 513 514 BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE CITY OF DOVER, IN COUNCIL MET: 515 516 The amount hereinafter named aggregating Two Hundred Sixty Eight Thousand One Hundred Eighty Two 517 dollars ($268,182) or so much thereof as may be necessary are hereby appropriated from current revenues 518 and other funds for the use by several departments of the Municipal Government for the fiscal year 519 beginning July 1, 2010 and ending June 30, 2011: 520 521 CASH RECEIPTS 522 2009/10 2010/11 523 REVISED BUDGET 524 PRIOR YEAR BALANCE $ 251,601 $ 260,371 525 INTEREST EARNINGS 8,770 7,811 526 TRANSFER FROM WATER/WASTEWATER ‐ 527 528 TOTALS $ 260,371 $ 268,182 529 530 BUDGET SUMMARY 531 2009/10 2010/11 532 REVISED BUDGET 533 TRANSFER TO WATER $ ‐ $ ‐ 534 TRANSFER TO WASTEWATER ‐ ‐ 535 TRANSFER TO CAPITAL ASSET RESERVE ‐ ‐ 536 CURRENT YEAR BALANCE 260,371 268,182 537 538 TOTALS $ 260,371 $ 268,182 539 540 The City Manager is hereby authorized, without further approval of the City Council, to make 541 inter‐departmental transfers of up to five percent of the amount hereinafter appropriated to any 542 department except that the City Manager shall not make any transfers prohibited by City 543 Procedure #F306 and/or #F306ADD. 12

544 2010‐2011 BUDGET ORDINANCES ‐ CONTINUED 545 546 ELECTRIC REVENUE FUND 547 548 REVENUES AND BUDGET FOR 2010‐2011 549 550 BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE CITY OF DOVER, IN COUNCIL MET: 551 552 The amount hereinafter named aggregating One Hundred Ten Million One Hundred Eighteen Thousand 553 One Hundred Thirty Three dollars ($110,118,133) or so much thereof as may be necessary are hereby 554 appropriated from current revenues and other funds for the use by several departments of the 555 Municipal Government for the fiscal year beginning July 1, 2010 and ending June 30, 2011: 556 557 2009/10 2010/11 558 REVISED BUDGET 559 BASE REVENUE 560 PRIOR YEAR BALANCE $ 11,415,737 $ 12,086,275 561 DIRECT SALES TO CUSTOMER 95,830,100 96,595,300 562 PURCHASE POWER ADJUSTMENT ‐ (2,000,000) 563 UTILITY TAX 1,850,000 1,864,800 564 GREEN ENERGY 128,600 128,600 565 MISCELLANEOUS REVENUE 891,200 891,200 566 RENT REVENUE 186,816 186,816 567 EMISSION CREDIT SALES 274,000 ‐ 568 TRANSFER FROM RATE STABILIZATION ‐ ‐ 569 INTRAFUND SERVICE RECEIPTS WATER/WASTEWATER 281,828 299,442 570 REIMBURSEMENT OF BOND ISSUANCE COST ‐ ‐ 571 INTEREST EARNINGS 57,000 65,700 572 573 TOTALS $ 110,915,281 $ 110,118,133 13

574 ELECTRIC REVENUE FUND ‐ CONTINUED 575 576 REVENUES AND BUDGET FOR 2010‐2011 577 578 2009/10 2010/11 579 EXPENSES REVISED BUDGET 580 POWER SUPPLY $ 55,619,481 $ 48,059,699 581 POWER SUPPLY MANAGEMENT 3,000,000 2,280,000 582 PJM CHARGES ‐ LOAD 7,356,438 11,850,876 583 CAPACITY CHARGES 13,456,389 11,618,223 584 RATE STABILIZATION CREDIT ‐ ‐ 585 SUB‐TOTAL POWER SUPPLY 79,432,308 73,808,798 586 PLANT OPERATIONS 5,768,710 5,694,315 587 GENERATIONS FUELS 213,529 297,820 588 PJM CREDITS (520,842) (720,797) 589 CAPACITY CREDITS (12,135,127) (11,488,785) 590 GENERATION SUBTOTAL (6,673,730) (6,217,447) 591 POWER SUPPLY & GENERATION SUBTOTAL 72,758,578 67,591,351 592 593 DIRECT EXPENDITURES 594 TRANSMISSION/DISTRIBUTION 3,215,601 3,206,515 595 ELECTRICAL ENGINEERING 1,359,569 1,842,903 596 ADMINISTRATION 679,558 609,169 597 METER READING 281,614 222,908 598 SYSTEMS OPERATIONS 488,131 518,053 599 UTILITY TAX 1,850,000 1,864,800 600 DIRECT EXPENDITURE SUBTOTALS 7,874,473 8,264,348 601 602 OTHER EXPENSES 603 ALLOW FOR UNCOLLECTIBLES 135,000 135,000 604 RETIREES HEALTH CARE 567,430 639,110 605 GREEN ENERGY PAYMENT TO DEMEC 128,600 128,600 606 INTRAFUND SERVICE FEES 3,379,975 3,387,873 607 INTEREST ON DEPOSITS 54,500 54,500 608 INVENTORY WRITE OFFS 175,000 175,000 609 BOND ISSUANCE COSTS ‐ ‐ 610 POWER SUPPLY STUDY 457,250 ‐ 611 DEBT SERVICE 3,956,600 4,058,700 612 OTHER EXPENSES SUBTOTAL 8,854,355 8,578,783 613 TRANSFER TO 614 IMPROVEMENT & EXTENSION 2,500,000 3,500,000 615 GENERAL FUND 6,758,100 8,856,000 616 TRANSFER TO CONTINGENCY 83,500 ‐ 617 TRANSFER TO PENSION UNFUNDED LIABILITY ‐ 833,000 618 TRANSFER TO PENSION COLA ‐ ‐ 619 TRANSFER TO OPEB ‐ 1,200,000 620 TRANSFER TO DEPRECIATION RESERVE ‐ 1,250,000 621 TRANSFER FUTURE CAPACITY ‐ ‐ 622 RATE STABILIZATION RESERVE ‐ 1,300,000 623 TRANSFER TO SUBTOTAL 9,341,600 16,939,000 624 625 CURRENT YEAR BALANCE 12,086,275 8,744,651 626 627 TOTALS $ 110,915,281 $ 110,118,133 628 629 The City Manager is hereby authorized, without further approval of the City Council, to make 630 inter‐departmental transfers of up to five percent of the amount hereinafter appropriated to any 631 department except that the City Manager shall not make any transfers prohibited by City 632 Procedure #F306 and/or #F306ADD. 14

633 2010‐2011 BUDGET ORDINANCES ‐ CONTINUED 634 635 ELECTRIC UTILITY IMPROVEMENT AND EXTENSION FUND 636 637 CASH RECEIPTS/REVENUES AND BUDGET FOR 2010‐2011 638 639 BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE CITY OF DOVER, IN COUNCIL MET: 640 641 The amount hereinafter named aggregating Five Million Two Hundred Twenty Nine Thousand Five Hundred 642 Sixty One dollars ($5,229,561) or so much thereof as may be necessary are hereby appropriated from current 643 revenues and other funds for the use by several departments of the Municipal Government for the fiscal 644 year beginning July 1, 2010 and ending June 30, 2011: 645 646 CASH RECEIPTS 647 2009/10 2010/11 648 REVISED BUDGET 649 PRIOR YEAR BALANCE $ 2,625,760 $ 1,688,861 650 PRIOR YEAR BALANCE BOND 4,240,034 ‐ 651 INTEREST EARNINGS 25,000 40,700 652 INTEREST TRUSTEE 2,599 ‐ 653 INCOME FROM SALE OF ASSETS ‐ ‐ 654 ELECTRIC NEW SERVICE FEES ‐ ‐ 655 RECEIPT FROM DEPRECIATION RESERVE ‐ ‐ 656 RECEIPT FROM FUTURE CAPACITY RESERVE ‐ ‐ 657 DEMA GRANT ‐ ‐ 658 STATE REIMBURSEMENT FOR SR1 &SR9 ‐ ‐ 659 STATE REIMBURSEMENT FOR GOVS AVE 710,318 ‐ 660 STATE GRANTS 105,723 ‐ 661 FEDERAL GRANTS 135,153 ‐ 662 BOND ISSUE 2008 ‐ ‐ 663 664 TRANSFER FROM ELECTRIC 2,500,000 3,500,000 665 666 TOTALS $ 10,344,587 $ 5,229,561 667 668 EXPENSE SUMMARY 669 2009/10 2010/11 670 REVISED BUDGET 671 672 ELECTRIC GENERATION $ 1,576,645 $ 1,480,068 673 TRANSMISSION AND DISTRIBUTION 1,108,147 739,000 674 ELECTRICAL ENGINEERING 5,865,211 1,390,429 675 ADMINISTRATION 105,723 ‐ 676 METER READING ‐ ‐ 677 SYSTEMS OPERATIONS ‐ ‐ 678 TRANSFER TO DEPRECIATION RESERVE ‐ ‐ 679 CURRENT YEAR BALANCE 1,688,861 1,620,064 680 CURRENT YEAR BALANCE ‐BOND ‐ ‐ 681 682 TOTALS $ 10,344,587 $ 5,229,561 683 684 685 The City Manager is hereby authorized, without further approval of the City Council, to make inter‐departmental 686 transfers of up to five percent of the amount hereinafter appropriated to any department except that the City 687 Manager shall not make any transfers prohibited by City Procedure #F306 and/or #F306ADD. 15

688 2010‐2011 BUDGET ORDINANCES ‐ CONTINUED 689 690 ELECTRIC UTILITY CONTINGENCY RESERVE 691 692 CASH RECEIPTS/REVENUES AND BUDGET FOR 2010‐2011 693 694 BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE CITY OF DOVER, IN COUNCIL MET: 695 696 The amount hereinafter named aggregating One Million Seventy One Thousand Fifty Four dollars 697 ($1,071,054) or so much thereof as may be necessary are hereby appropriated from current revenues 698 and other funds for the use by several departments of the Municipal Government for the fiscal year 699 beginning July 1, 2010 and ending June 30, 2011: 700 701 CASH RECEIPTS 702 2009/10 2010/11 703 REVISED BUDGET 704 BEGINNING BALANCE $ 928,654 $ 1,039,854 705 INTEREST EARNINGS 27,700 31,200 706 TRANSFER FROM INSURANCE STABILIZATION ‐ ‐ 707 TRANSFER FROM ELECTRIC REVENUE 83,500 ‐ 708 709 TOTALS $ 1,039,854 $ 1,071,054 710 711 EXPENSE SUMMARY 712 2009/10 2010/11 713 REVISED BUDGET 714 TRANSFER TO ELECTRIC FUND $ ‐ $ ‐ 715 TRANSFER TO RATE STABILIZATION FUND ‐ ‐ 716 CARRY FORWARD TO NEXT YEAR 1,039,854 1,071,054 717 718 TOTALS $ 1,039,854 $ 1,071,054 719 720 The City Manager is hereby authorized, without further approval of the City Council, to make inter‐ 721 departmental transfers of up to five percent of the amount hereinafter appropriated to any department 722 except that the City Manager shall not make any transfers prohibited by City Procedure #F306 and/or #F306ADD. 16

723 2010‐2011 BUDGET ORDINANCES ‐ CONTINUED 724 725 ELECTRIC UTILITY DEPRECIATION RESERVE 726 727 SOURCES AND USE OF FUNDS FOR 2010‐2011 728 729 BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE CITY OF DOVER, IN COUNCIL MET: 730 731 The amount hereinafter named aggregating Nine Million Five Hundred Seventy Two Thousand 732 Three Hundred Ninety dollars ($9,572,390) or so much thereof as may be necessary are hereby 733 appropriated from current revenues and other funds for the use by several departments of the 734 Municipal Government for the fiscal year beginning July 1, 2010 and ending June 30, 2011: 735 736 CASH RECEIPTS 737 2009/10 2010/11 738 REVISED BUDGET 739 PRIOR YEAR BALANCE $ 7,789,990 $ 8,079,990 740 RECEIPT FROM ELECTRIC REVENUE FUND ‐ 1,250,000 741 INTEREST EARNINGS 290,000 242,400 742 743 TOTALS $ 8,079,990 $ 9,572,390 744 745 BUDGET SUMMARY 746 2009/10 2010/11 747 REVISED BUDGET 748 TRANSFER TO IMPROVEMENT AND EXTENSION $ ‐ $ ‐ 749 TRANSFER TO INSURANCE STABILIZATION ‐ ‐ 750 FOR CAPITAL ITEMS ‐ ‐ 751 CURRENT YEAR BALANCE 8,079,990 9,572,390 752 753 TOTALS $ 8,079,990 $ 9,572,390 754 755 The City Manager is hereby authorized, without further approval of the City Council, to make inter‐ 756 departmental transfers of up to five percent of the amount hereinafter appropriated to any department 757 except that the City Manager shall not make any transfers prohibited by City Procedure #F306 and/or #F306ADD. 17

758 2010‐2011 BUDGET ORDINANCES ‐ CONTINUED 759 760 ELECTRIC UTILITY FUTURE CAPACITY RESERVE 761 762 SOURCES AND USE OF FUNDS FOR 2010‐2011 763 764 BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE CITY OF DOVER, IN COUNCIL MET: 765 766 The amount hereinafter named aggregating Nine Million Two Hundred Ninety Four Thousand Five Hundred Sixty 767 Three dollars ($9,294,563) or so much thereof as may be necessary are hereby appropriated from current revenues 768 and other funds for the use by several departments of the Municipal Government for the fiscal year 769 beginning July 1, 2010 and ending June 30, 2011: 770 771 CASH RECEIPTS 772 2009/10 2010/11 773 REVISED BUDGET 774 PRIOR YEAR BALANCE $ 8,763,863 $ 9,023,863 775 RECEIPT FROM ELECTRIC REVENUE FUND ‐ ‐ 776 INTEREST EARNINGS 260,000 270,700 777 778 TOTALS $ 9,023,863 $ 9,294,563 779 780 BUDGET SUMMARY 781 2009/10 2010/11 782 REVISED BUDGET 783 TRANSFER TO IMPROVEMENT AND EXTENSION $ ‐ $ ‐ 784 CURRENT YEAR BALANCE 9,023,863 9,294,563 785 786 TOTALS $ 9,023,863 $ 9,294,563 787 788 The City Manager is hereby authorized, without further approval of the City Council, to make inter‐ 789 departmental transfers of up to five percent of the amount hereinafter appropriated to any department 790 except that the City Manager shall not make any transfers prohibited by City Procedure #F306 and/or #F306ADD. 18

791 2010‐2011 BUDGET ORDINANCES ‐ CONTINUED 792 793 ELECTRIC UTILITY INSURANCE STABLIZATION RESERVE 794 795 SOURCES AND USE OF FUNDS FOR 2010‐2011 796 797 BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE CITY OF DOVER, IN COUNCIL MET: 798 799 The amount hereinafter named aggregating Four Hundred Eight Thousand Five Hundred Three dollars 800 ($408,503) or so much thereof as may be necessary are hereby appropriated from current revenues 801 and other funds for the use by several departments of the Municipal Government for the fiscal year 802 beginning July 1, 2010 and ending June 30, 2011: 803 804 CASH RECEIPTS 805 2009/10 2010/11 806 REVISED BUDGET 807 PRIOR YEAR BALANCE $ 385,103 $ 396,603 808 RECEIPT FROM ELECTRIC REVENUE FUND ‐ ‐ 809 RECEIPT FROM ELECTRIC DEPRECIATION RESERVE FUND ‐ ‐ 810 INTEREST EARNINGS 11,500 11,900 811 812 TOTALS $ 396,603 $ 408,503 813 814 BUDGET SUMMARY 815 2009/10 2010/11 816 REVISED BUDGET 817 TRANSFER TO ELECTRIC REVENUE CONTINGENCY $ ‐ $ ‐ 818 CURRENT YEAR BALANCE 396,603 408,503 819 820 TOTALS $ 396,603 $ 408,503 821 822 The City Manager is hereby authorized, without further approval of the City Council, to make inter‐ 823 departmental transfers of up to five percent of the amount hereinafter appropriated to any department 824 except that the City Manager shall not make any transfers prohibited by City Procedure #F306 and/or #F306ADD. 19

825 2010‐2011 BUDGET ORDINANCES ‐ CONTINUED 826 827 ELECTRIC UTILITY RATE STABLIZATION RESERVE 828 829 SOURCES AND USE OF FUNDS FOR 2010‐2011 830 831 BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE CITY OF DOVER, IN COUNCIL MET: 832 833 The amount hereinafter named aggregating Six Million One Hundred Seventy One Thousand Twenty Seven 834 dollars ($6,171,027) or so much thereof as may be necessary are hereby appropriated from current revenues 835 and other funds for the use by several departments of the Municipal Government for the fiscal year 836 beginning July 1, 2010 and ending June 30, 2011: 837 838 CASH RECEIPTS 839 2009/10 2010/11 840 REVISED BUDGET 841 PRIOR YEAR BALANCE $ 4,652,527 $ 4,729,127 842 RECEIPT FROM ELECTRIC REVENUE FUND ‐ 1,300,000 843 RECEIPT FROM ELECTRIC CONTINGENCY ‐ ‐ 844 INTEREST EARNINGS 76,600 141,900 845 846 TOTALS $ 4,729,127 $ 6,171,027 847 848 BUDGET SUMMARY 849 2009/10 2010/11 850 REVISED BUDGET 851 TRANSFER TO ELECTRIC FUND $ ‐ $ ‐ 852 853 CURRENT YEAR BALANCE 4,729,127 6,171,027 854 855 TOTALS $ 4,729,127 $ 6,171,027 856 857 The City Manager is hereby authorized, without further approval of the City Council, to make inter‐ 858 departmental transfers of up to five percent of the amount hereinafter appropriated to any department 859 except that the City Manager shall not make any transfers prohibited by City Procedure #F306 and/or #F306ADD. 20

860 2010‐2011 BUDGET ORDINANCES ‐ CONTINUED 861 862 WORKERS COMPENSATION FUND 863 864 CASH RECEIPTS/REVENUES AND BUDGET FOR 2010‐2011 865 866 BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE CITY OF DOVER, IN COUNCIL MET: 867 868 The amount hereinafter named aggregating Two Million Fifty Two Thousand Nine Hundred Seventeen dollars 869 ($2,052,917) or so much thereof as may be necessary are hereby appropriated from current revenues 870 and other funds for the use by several departments of the Municipal Government for the fiscal year 871 beginning July 1, 2010 and ending June 30, 2011: 872 873 OPERATING REVENUES 874 2009/10 2010/11 875 REVISED BUDGET 876 PRIOR YEAR BALANCE $ 1,278,611 $ 1,342,387 877 INTEREST INCOME 40,000 40,000 878 PREMIUM FROM CITY 634,149 670,530 879 INSURANCE REFUND 3,392 ‐ 880 TRANSFER FROM GENERAL ‐ ‐ 881 TRANSFER FROM WATER/WASTEWATER ‐ ‐ 882 TRANSFER FROM ELECTRIC ‐ ‐ 883 884 TOTALS $ 1,956,152 $ 2,052,917 885 886 OPERATING EXPENSES 887 2009/10 2010/11 888 REVISED BUDGET 889 PROGRAM EXPENSES/SUPPLIES ‐ CLAIMS $ 450,000 $ 450,000 890 INSURANCE 93,400 93,400 891 BANK FEES ‐ ‐ 892 STATE OF DEL ‐ SELF INSURANCE TAX 35,365 37,000 893 CONTRACTUAL SERVICES 35,000 32,000 894 TRANSFER TO PENSION FUND ‐ ‐ 895 TRANSFER TO GENERAL FUND FOR RETIREES ‐ ‐ 896 897 TOTAL EXPENSES 613,765 612,400 898 899 CURRENT YEAR BALANCE 1,342,387 1,440,517 900 901 TOTALS $ 1,956,152 $ 2,052,917 902 903 The City Manager is hereby authorized, without further approval of the City Council, to make inter‐ 904 departmental transfers of up to five percent of the amount hereinafter appropriated to any department 905 except that the City Manager shall not make any transfers prohibited by City Procedure #F306 and/or #F306ADD. 21

906 2010‐2011 BUDGET ORDINANCES ‐ CONTINUED 907 908 COMMUNITY TRANSPORTATION IMPROVEMENT FUND 909 910 CASH RECEIPTS/REVENUES AND BUDGET FOR 2010‐2011 911 912 BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE CITY OF DOVER, IN COUNCIL MET: 913 914 The amount hereinafter named aggregating One Million Three Hundred Two Thousand Eight Hundred 915 dollars ($1,302,800) or so much thereof as may be necessary are hereby appropriated from current revenues 916 and other funds for the use by several departments of the Municipal Government for the 917 fiscal year beginning July 1, 2010 and ending June 30, 2011: 918 919 OPERATING REVENUES 920 2009/10 2010/11 921 REVISED BUDGET 922 PRIOR YEAR BALANCE $ 270,803 $ 100,913 923 GRANTS REVENUE 1,000,000 1,000,000 924 TRANSFER FROM GENERAL ‐ 300,000 925 INTEREST INCOME 2,800 2,800 926 927 TOTALS $ 1,273,603 $ 1,403,713 928 929 OPERATING EXPENSES 930 2009/10 2010/11 931 REVISED BUDGET 932 PROGRAM EXPENSES $ 1,172,690 $ 1,300,000 933 OPERATING TRANSFERS OUT ‐ ‐ 934 935 CURRENT YEAR BALANCE 100,913 103,713 936 937 TOTALS $ 1,273,603 $ 1,403,713 938 939 The City Manager is hereby authorized, without further approval of the City Council, to make inter‐ 940 departmental transfers of up to five percent of the amount hereinafter appropriated to any department 941 except that the City Manager shall not make any transfers prohibited by City Procedure #F306 and/or #F306ADD. 22

942 2010‐2011 BUDGET ORDINANCES ‐ CONTINUED 943 944 PARKLAND/RECREATION RESERVE 945 946 CASH RECEIPTS/REVENUES AND BUDGET FOR 2010‐2011 947 948 BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE CITY OF DOVER, IN COUNCIL MET: 949 950 The amount hereinafter named aggregating One Hundred Eighty Five Thousand Forty Five dollars 951 ($185,045) or so much thereof as may be necessary are hereby appropriated from current revenues 952 and other funds for the use by several departments of the Municipal Government for the fiscal 953 year beginning July 1, 2010 and ending June 30, 2011: 954 955 OPERATING REVENUES 956 2009/10 2010/11 957 REVISED BUDGET 958 PRIOR YEAR BALANCE $ 218,245 $ 178,245 959 GENERAL FUND APPROPRIATION ‐ ‐ 960 PAYMENT IN LIEU OF PARKLAND ‐ ‐ 961 TRANSFER FROM LIBRARY RESERVE ‐ ‐ 962 TRANSFER FROM CTF ‐ ‐ 963 INTEREST INCOME ‐ 6,800 964 965 TOTALS $ 218,245 $ 185,045 966 967 OPERATING EXPENSES 968 2009/10 2010/11 969 REVISED BUDGET 970 TRANSFER TO GENERAL CAPITAL PROJECTS FUND $ 40,000 $ ‐ 971 972 CURRENT YEAR BALANCE 178,245 185,045 973 974 TOTALS $ 218,245 $ 185,045 975 976 The City Manager is hereby authorized, without further approval of the City Council, to make inter‐ 977 departmental transfers of up to five percent of the amount hereinafter appropriated to any department 978 except that the City Manager shall not make any transfers prohibited by City Procedure #F306 and/or #F306ADD. 23

979 2010‐2011 BUDGET ORDINANCES ‐ CONTINUED 980 981 LIBRARY RESERVE 982 983 CASH RECEIPTS/REVENUES AND BUDGET FOR 2010‐2011 984 985 BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE CITY OF DOVER, IN COUNCIL MET: 986 987 The amount hereinafter named aggregating Three Million Five Hundred Eighty Seven Thousand Two Hundred Five 988 dollars ($3,587,205) or so much thereof as may be necessary are hereby appropriated from current revenues 989 and other funds for the use by several departments of the Municipal Government for the fiscal year 990 beginning July 1, 2010 and ending June 30, 2011: 991 992 OPERATING REVENUES 993 2009/10 2010/11 994 REVISED BUDGET 995 PRIOR YEAR BALANCE $ 3,554,078 $ 3,477,305 996 GENERAL FUND APPROPRIATION ‐ ‐ 997 TRANSFER FROM GENERAL CONTINGENCY ‐ ‐ 998 INTEREST INCOME 101,133 109,900 999 1000 TOTALS $ 3,655,211 $ 3,587,205 1001 1002 OPERATING EXPENSES 1003 2009/10 2010/11 1004 REVISED BUDGET 1005 TRANSFER TO PARKLAND RESERVE $ ‐ $ ‐ 1006 TRANSFER TO CAPITAL PROJECT FUND 177,906 2,343,519 1007 TRANSFER TO GENERAL FUND ‐ ‐ 1008 1009 CURRENT YEAR BALANCE 3,477,305 1,243,686 1010 1011 TOTALS $ 3,655,211 $ 3,587,205 1012 1013 The City Manager is hereby authorized, without further approval of the City Council, to make inter‐ 1014 departmental transfers of up to five percent of the amount hereinafter appropriated to any department 1015 except that the City Manager shall not make any transfers prohibited by City Procedure #F306 and/or #F306ADD. 24

1016 2010‐2011 BUDGET ORDINANCES ‐ CONTINUED 1017 1018 LIBRARY GRANTS 1019 1020 CASH RECEIPTS/REVENUES AND BUDGET FOR 2010‐2011 1021 1022 BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE CITY OF DOVER, IN COUNCIL MET: 1023 1024 The amount hereinafter named aggregating Two Hundred Seventy Eight Thousand Eight Hundred Eighty Seven 1025 dollars ($278,887) or so much thereof as may be necessary are hereby appropriated from current revenues 1026 and other funds for the use by several departments of the Municipal Government for the fiscal year 1027 beginning July 1, 2010 and ending June 30, 2011: 1028 1029 OPERATING REVENUES 1030 2009/10 2010/11 1031 REVISED BUDGET 1032 PRIOR YEAR BALANCE $ 16,336 $ 16,336 1033 STATE GRANT 247,801 259,801 1034 FEDERAL GRANT ‐ 2,750 1035 INTEREST INCOME ‐ ‐ 1036 1037 TOTALS $ 264,137 $ 278,887 1038 1039 OPERATING EXPENSES 1040 2009/10 2010/11 1041 REVISED BUDGET 1042 FURNITURE/FIXTURES $ ‐ 1043 PROGRAM EXPENSES/SUPPLIES 41,935 41,935 1044 BOOKS 107,216 119,216 1045 COMPUTER SOFTWARE ‐ ‐ 1046 COMPUTER HARDWARE ‐ ‐ 1047 AUDIO VISUAL SUPPLIES 55,000 55,000 1048 ADVERTISEMENT ‐ 1049 TRAINING/CONF/FOOD/TRAV 5,000 5,000 1050 CONSULTING FEES ‐ 1051 CONTRACTUAL SERVICES 18,650 18,650 1052 OFF EQUIP/REPAIRS & MAINT ‐ ‐ 1053 OTHER EQUIP ‐ PURCHASE ‐ ‐ 1054 COMPUTER SOFTWARE ‐ ‐ 1055 COMPUTER HARDWARE 20,000 20,000 1056 SUBTOTAL EXPENSES STATE GRANTS 247,801 259,801 1057 1058 FEDERAL GRANTS 1059 PROGRAM EXPENSES/SUPPLIES ‐ 2,750 1060 BOOKS ‐ ‐ 1061 TELEPHONE/FAX ‐ ‐ 1062 ADVERTISEMENT ‐ ‐ 1063 TRAINING/CONF/FOOD/TRAV ‐ ‐ 1064 SUBTOTAL EXPENSES FEDERAL GRANTS ‐ 2,750 1065 1066 CURRENT YEAR BALANCE 16,336 16,336 1067 1068 TOTALS $ 264,137 $ 278,887 1069 1070 The City Manager is hereby authorized, without further approval of the City Council, to make inter‐ 1071 departmental transfers of up to five percent of the amount hereinafter appropriated to any department 1072 except that the City Manager shall not make any transfers prohibited by City Procedure #F306 and/or #F306ADD. 1073 Adopted: * 25

EXHIBIT #2 Council Meeting of 06/28/2010 FINAL READING PROPOSED ORDINANCE BUSINESS IMPROVEMENT DISTRICT CASH RECEIPTS BUDGET FOR 2010-11 BID TAX REVENUE AND EXPENSES CHARGED AGAINST THIS REVENUE ADMINISTERED THROUGH CITY OF DOVER ECONOMIC DEVELOPMENT FT BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE CITY OF DOVER, IN COUNCIL MET: 1. The amount hereinafter named aggregating Fifty-two thousand, one hundred and forty-four dollars ($52,144) or so much thereof as may be necessary is hereby appropriated from current revenues and other funds for the use by the City of Dover Economic Development for the fiscal year beginning July 1, 2010, and ending June 30, 2011: REVENUE PROPOSED RA Tax Revenue EXPENSES Personnel & Administration Expenses $52,144 $52,144 D

Page 2 of 2 BUSINESS IMPROVEMENT DISTRICT TAX CALCULATION WORKSHEET JULY 1, 2010 TO JUNE 30, 2011 ZONE 1 ZONE 2 ZONE 3 TOTAL Aggregate Assessments Assessment Tax Rate per $100 Revenue Raised % Revenue Raised Number of Parcels Average Assessment FT $40,130,000 $61,079,800 $34,517,500 $135,727,300 0.0634 $25,442 49% 116 $219 0.0349 $21,317 41% 105 $203 0.0156 $5,385 10% 43 $125 $52,144 100% --- 264 $548 NOTE: These figures were estimated per the 2010 reassessed values. The revenue percentages by Zone are per the City of Dover Code Appendix D-Article III, Section 9(e). RA Aggregate Assessments Number of Parcels Average Assessment JULY 1, 2009 TO JUNE 30, 2010 Assessment Tax Rate per $100 Revenue Raised % Revenue Raised ZONE 1 $31,920,900 0.0822 $26,239 50% 123 $213 ZONE 2 $58,906,700 0.0362 $21,324 40% 115 $185 ZONE 3 $29,939,400 0.0180 $5,389 10% 49 $110 TOTAL $120,767,000 --- $52,952 100% 287 $185 D NOTE: These figures were estimated per the reassessed values. The revenue percentages by Zone are per the City of Dover Code Appendix D-Article III, Section 9(e).