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REGULAR CITY COUNCIL MEETING
The Regular Council Meeting was held on December 9, 2019 at 7:30 p.m. with Council President
Hare presiding. Council members present were Mr. Anderson, Mr. Sudler, Mr. Neil, Mr. Slavin,
Mr. Polce, Mr. Taylor, and Mr. Lindell. Mr. Cole was absent.
Staff members present were Major Stump, Ms. Peddicord, Mrs. Mitchell, Mr. Hugg, City Solicitor
Rodriguez, and Mrs. McDowell. Fire Chief Rhodes was absent. Mayor Christiansen 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 Hare declared the Open Forum in session and reminded those present that Council
was not in official session and could not take formal action.
There was no one present wishing to speak during the Open Forum.
The invocation was given by Bishop Thomas L. Holsey, followed by the Pledge of Allegiance.
ADOPTION OF AGENDA
Mr. Neil moved for adoption of the agenda, seconded by Mr. Taylor and unanimously carried.
Mr. Sudler requested that item #2-B-2 - Legislative, Finance, and Administration Committee Report
- Presentation - Diversity and Inclusion Study, be removed from the consent agenda.
Mr. Slavin moved for approval of the consent agenda, as amended, seconded by Mr. Sudler
and carried by a unanimous roll call vote (Cole absent).
ADOPTION OF MINUTES - REGULAR COUNCIL MEETING OF NOVEMBER 25, 2019
The Minutes of the Regular Council Meeting of November 25, 2019 were unanimously
approved by motion of Mr. Slavin, seconded by Mr. Sudler and bore the written approval of
Mayor Christiansen.
C O U N C I L C O M M I T T E E O F TH E WH O LE RE PO RT -
NOVEMBER 26, 2019
The Council Committee of the Whole met on November 26, 2019 at 6:00 p.m., with
Council President Hare presiding. Members of Council present were Mr. Anderson
(arrived at 6:05 p.m.), Mr. Neil, Mr. Slavin, Mr. Cole (arrived at 6:02 p.m.),
Mr. Taylor, and Mr. Lindell. Mr. Polce and Mr. Sudler were absent. Mayor
Christiansen was also present. Civilian members present for their Committee
meetings were Mr. Garfinkel and Mr. Shelton (Safety Advisory and Transportation)
and Mr. Contant and Mr. Shevock (Legislative, Finance, and Administration).
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CITY COUNCIL MEETING OF DECEMBER 9, 2019 PAGE 2
SAFETY ADVISORY AND TRANSPORTATION COMMITTEE
The Safety Advisory and Transportation Committee met with Chairman Taylor
presiding.
Adoption of Agenda
By unanimous consent, the agenda was adopted.
Reconsideration - Prioritization of City of Dover State Capital Transportation
Program (CTP) projects
During the Regular Council meeting of October 14, 2019 members approved the
Committee's September 24, 2019 recommended priority ranking for the coming year,
as amended.
Mrs. Donna Mitchell, City Manager, advised that they have had another meeting with
the Delaware Department of Transportation (DelDOT) officials and they were
advised that the Loockerman Street/Forest Street Intersection project, which was #4
on the City’s Transportation Prioritization List, has been placed on hold because
there does not seem to be interest in the traffic circle. She recommended prioritizing
the project as #11, the last one on the list.
Mayor Christiansen advised that he met with Secretary of Transportation Cohen to
review the entire project and they indicated that different options were being
considered for that area other than a traffic circle.
Mr. Neil, noting that this area is supposed to be a gateway into the City, suggested
making it priority #11 and then revisiting the project in January when they know
exactly what DelDOT is thinking. Agreeing with Mr. Neil, Mr. Lindell noted the
various traffic choke holds around the City and stated that he thought this project still
needed to be a priority. He thought that a conversation between Mayor Christiansen
and Secretary Cohen might help shed some light on the situation.
Mr. Neil moved to recommend reprioritizing item #4 - Loockerman
Street/Forest Street Intersection as item #11 and discussing the project further
in January 2020. The motion was seconded by Mr. Slavin and unanimously
carried.
By consent agenda, Mr. Slavin moved for approval of the Committee’s recommendation,
seconded by Mr. Sudler and carried by a unanimous roll call vote (Cole absent).
Quarterly Update - Bicycle and Pedestrian Subcommittee
This item was deferred due to the absence of a subcommittee representative.
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CITY COUNCIL MEETING OF DECEMBER 9, 2019 PAGE 3
Mr. Hare moved for adjournment of the Safety Advisory and Transportation
Committee meeting, seconded by Mr. Shelton and unanimously carried.
Meeting adjourned at 6:10 p.m.
LEGISLATIVE, FINANCE, AND ADMINISTRATION COMMITTEE
The Legislative, Finance, and Administration Committee met with Chairman Lindell
presiding.
Adoption of Agenda
Mr. Neil moved for adoption of the agenda, seconded by Mr. Taylor and
unanimously carried.
Evaluation of Proposals - Weyandt Hall Elevator Modernization
Mr. Michael Hamlett, Central Services Director, reviewed the background and
analysis regarding the Evaluation of Proposals for the Weyandt Hall Elevator
Modernization.
Responding to Mr. Shevock, Mr. Hamlett advised that the jack does not pose a safety
concern and it is standard procedure in the modernization process to look for any
issues that may arise in the near future.
Mr. Anderson asked if the work that was purely cosmetic would be eliminated if the
project ran over budget or if there was a planned strategy in the event of a cost
overrun. Responding, Mr. Hamlett stated that there was not necessarily a strategy to
deal with a catastrophic issue; however, they could postpone some of the
recommendations based upon what is found when they pull the cylinder. He advised
that he is recommending some substantial mechanical upgrades and he would
probably defer the stainless steel cladding and things of that nature if necessary.
Mr. Hamlett noted that other items, such as the hoistway patching, were necessary
to bring the elevator into compliance. He advised that the elevator is severely
outdated and items such as the void in the concrete wall may have been acceptable
20 or 30 years ago but they are not acceptable now. Mr. Hamlett stated that the
contractor has advised him that they have a 90 to 95% success rate with the cylinders.
Responding to Mayor Christiansen, Mr. Hamlett stated that there are monthly
elevator inspections and annual load and capacity testing for certification. He stated
that he believed the elevator recall and fire alarm system tests were conducted as a
part of the annual test. Mr. Hamlett also advised that the elevator would be out of
service for approximately 28 weeks, depending upon the start date, and that a
performance bond was not requested of the contractor.
Staff recommended awarding the Elevator Modernization contract to Delaware
Elevator as per the proposal submitted in response to RFP #20-0005FM.
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CITY COUNCIL MEETING OF DECEMBER 9, 2019 PAGE 4
Mr. Neil moved to recommend awarding the Elevator Modernization contract
to Delaware Elevator as per the proposal submitted in response to RFP
#20-0005FM, with the provision that a performance bond be required in the
contract. The motion was seconded by Mr. Anderson and unanimously carried.
By consent agenda, Mr. Slavin moved for approval of the Committee’s recommendation,
seconded by Mr. Sudler and carried by a unanimous roll call vote (Cole absent).
Presentation - Diversity and Inclusion Study
This item was deferred due to the unavailability of the consultant.
Responding to Mr. Sudler, Mrs. Donna Mitchell, City Manager, advised that the presentation was
rescheduled for January 14, 2020.
Proposed Ordinance #2019-19 Amending Appendix B - Zoning, Article 3 -
District Regulations, Section 9 - General Residence and Office Zoning (RG-O)
Mrs. Dawn Melson-Williams, Principal Planner, advised that the proposed ordinance
amendment was the result of a constituent request. She noted that the proposed
ordinance would add barbershops as a potential conditional use in the General
Residence and Office Zoning (RG-O) zone.
Mr. Slavin advised that he and Mr. Polce agreed to sponsor the ordinance, which
seeks to modernize some of the zoning in the downtown area. He noted that the
zoning on one side of South State Street allows barber shops and the zoning on the
other side of the street does not. Mr. Slavin advised that Representative Sean Lynn,
the constituent who requested the amendment, was in attendance and could answer
any questions.
Mr. Lynn, 282 Troon Road, advised that he was present only in his capacity as a
constituent. He stated that he was approached by Mr. Joe Chilcote about opening a
barber shop in his building at 315 South State Street, which is simply a storefront
comprised of two rooms. Mr. Lynn noted that Mr. Chilcote has spoken to the
neighbors and Council people and he has the support of the couple that live on the
block. He advised that his law firm occupies the majority of the block.
Mr. Neil asked if a barber shop would attract business downtown and, if so, if
Mr. Chilcote was qualified to operate a barbershop. Responding, Mr. Joseph A.
Chilcote, 315 South State Street, stated that he had been a fully licensed barber for
two years and that he currently has a lot of military clientele.
Mayor Christiansen asked if there would be an old fashioned barber pole.
Responding, Mr. Chilcote stated that if he were permitted to have one, he was
definitely not opposed to putting one up.
Mr. Slavin noted that there was a time 20 plus years ago when there was a prohibition
for any kind of personal care businesses up and down Loockerman Street as a
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CITY COUNCIL MEETING OF DECEMBER 9, 2019 PAGE 5
revitalization strategy for downtown so that you would not see tattoo parlors and nail
salons sweep into vacant buildings. He stated that in the 20 years that have
intervened, you can walk down Loockerman Street and see where they have relaxed
that standard. Mr. Slavin advised that it was done because they are good businesses
and they want to bring people downtown to spend money and support those
businesses.
Mr. Lindell stated that he agreed with the fact that they want to be able to expand
businesses and when there are glitches in the code like this, it is good to update them
to make sure that they are not stifling business, especially in this case when the
business could simply exist across the street.
Responding to Mr. Taylor, Mr. Chilcote stated that there was free two hour parking
on The Green, if there is space available. He also noted there was always opportunity
to park in front of the courthouse and around a lot of the city buildings. Mr. Chilcote
stated that he thought it would be a good opportunity for other people to see the other
businesses walking to his barber shop.
Mr. Lynn stated that this issue underscores a larger problem with the difficulty of
opening businesses in downtown Dover. He noted that it was still going to be
months before Mr. Chilcote can open his shop because of the process to adopt the
ordinance and the need for a conditional use permit. Mr. Lynn guaranteed that the
City’s code enforcement officers were going to say that the building, which is 300
square feet, will need to be sprinklered and then they will go to Construction Code
Board of Appeals. He encouraged Council to think about how difficult it is to open
a business in downtown Dover, which is an area that they are trying to revitalize.
Mr. Lynn noted that before he moved into the block, it was almost completely
uninhabited except for the Delaware Made Store, the Friends of Old Dover, and a
few offices. He stated that he developed a significant amount of this block, three
buildings, and the last renovation was incredibly difficult to get done. Mr. Lynn
advised that he had to put in a $15,000 fully fabricated metal staircase fire escape.
Mr. Lindell suggested that the issue could be considered at a future workshop.
Mr. Anderson moved to recommend adoption of the ordinance. The motion was
seconded by Mr. Hare.
Responding to Mr. Hare, Mrs. Melson-Williams advised that the RG-O zone is
primarily a residence and office zone and if the property is also in the historic district,
it can be considered through a conditional use process. She noted that The House of
Coffi, Delaware Made, and Park Green Galleries were recent examples of properties
that have moved through that conditional use process to establish retail and restaurant
uses, some being located on this same block. Mr. Hare asked if those buildings were
sprinklered. Mrs. Melson-Williams advised that the requirements for sprinkling are
based on the use and the type of construction of a building according to the
provisions of the building and fire codes. She stated that it would be evaluated for
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CITY COUNCIL MEETING OF DECEMBER 9, 2019 PAGE 6
any new tenant going into an existing building citywide, not just within this block.
Mrs. Melson-Williams advised that she would have to defer to the Fire Marshal’s
Office for the individual requirements for a fire alarm or sprinkler system, which are
related to occupancy, the size of the space, and what it is next to. She noted that
Staff is always ready to answer questions and help guide applicants through the
review processes that are established by the City’s codes and regulations.
Responding to Mayor Christiansen, Mrs. Melson-Williams advised that if the text
amendment moves through the review process, there would be a first reading at the
December Council meeting with a public hearing at the January Planning
Commission meeting on the text amendment and a Council final action in early
February. She noted that the only expediting they could do of a potential conditional
use application would be to accept that application the first week in February, which
would schedule it for a March meeting of the Planning Commission. Mrs. Melson-
Williams noted that these were the requirements of the zoning ordinance as they exist
or could exist, depending on action on the text amendment.
The motion to recommend adoption of the ordinance was unanimously carried.
By consent agenda, Mr. Slavin moved for approval of the Committee’s recommendation,
seconded by Mr. Sudler and carried by a unanimous roll call vote (Cole absent). (The First
Reading of the ordinance will take place during the latter part of the meeting.)
Proposed Ordinance #2019-20 Amending Chapter 102 - Taxation, Article IV -
Abatement of Real Estate Taxes, Section 102-113 - Qualifications
Mrs. Traci McDowell, City Clerk, advised that the Dover Code currently directs
applicants for the abatement of real estate taxes to submit their documentation to the
City Clerk’s Office. Noting that the Clerk’s Office merely forwards the documents
to the Tax Office, Mrs. McDowell advised that the amendment would direct the
applicants to the proper receiving office, which is the Tax Office.
Mr. Slavin moved to recommend adoption of Ordinance #2019-20, seconded by
Mr. Neil and unanimously carried.
By consent agenda, Mr. Slavin moved for approval of the Committee’s recommendation,
seconded by Mr. Sudler and carried by a unanimous roll call vote (Cole absent). (The First
Reading of the ordinance will take place during the latter part of the meeting.)
Annual Review of Investment Policy
Ms. Lori Peddicord, Controller/Treasurer, advised that the Investment Policy
provides guidance on the investment of public funds that will provide the highest
investment return consistent with the maximum safety of principle. She noted that
it conforms to all state and local statutes governing public funds investment.
Ms. Peddicord reviewed the Investment Policy, noting that only two changes were
being recommended.
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CITY COUNCIL MEETING OF DECEMBER 9, 2019 PAGE 7
Staff recommended approval of the submitted changes.
Mr. Neil moved to recommend approval of the Investment Policy, as amended.
The motion was seconded by Mr. Shevock and unanimously carried.
By consent agenda, Mr. Slavin moved for approval of the Investment Policy, as amended
(Exhibit #1). The motion was seconded by Mr. Sudler and carried by a unanimous roll call
vote (Cole absent).
Mr. Hare moved for adjournment of the Legislative, Finance, and
Administration Committee meeting, seconded by Mr. Taylor and unanimously
carried.
Meeting adjourned at 6:42 p.m.
Mr. Anderson moved for adjournment of the Council Committee of the Whole
meeting. The motion was seconded by Mr. Slavin and unanimously carried.
Meeting adjourned at 6:42 p.m.
Mr. Anderson moved for acceptance of the Council Committee of the Whole Report, seconded
by Mr. Sudler and unanimously carried.
MONTHLY REPORTS - October 2019
By motion of Mr. Slavin, seconded by Mr. Sudler, the following monthly reports were accepted
by consent agenda:
City Assessor's Report
City Council’s Community Enhancement Fund Report
City Manager's Report
City Planner's Report
Controller/Treasurer's Budget Report
Fire Chief's Report
Police Chief's Report
REAPPOINTMENTS RECOMMENDED BY MAYOR CHRISTIANSEN - HISTORIC
DISTRICT COMMISSION - THREE YEAR TERMS TO EXPIRE JULY 2022
Mayor Christiansen recommended the following reappointments to the Historic District Commission
for three year terms to expire July 2022:
Eric S. Czerwinski, Professional
B. Jonathan N. H. Street, Professional
By consent agenda, Mr. Slavin moved for approval of the reappointments to the Historic
District Commission, as recommended by Mayor Christiansen, seconded by Mr. Sudler and
carried by a unanimous roll call vote (Cole absent).
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CITY COUNCIL MEETING OF DECEMBER 9, 2019 PAGE 8
FIRST READING - PROPOSED ORDINANCE #2019-20
Council President Hare reminded the public that copies of the proposed ordinance were available
at the entrance of the Council Chambers, on the City's website at www.cityofdover.com under
"Government," or by contacting the City Clerk's Office at 736-7008 or cityclerk@dover.de.us. Final
action by Council on the proposed ordinance will take place during the Council Meeting of
January 13, 2020.
Council President Hare advised that the amendment changes the tax abatement affidavit recipient
from the City Clerk to the City Assessor.
In accordance with Section 1-9 of the Dover Code, Council acknowledged the First Reading of the
proposed Ordinance as read by the City Clerk, by title only, as follows:
Ordinance #2019-20 Amending Chapter 102 - Taxation, Article IV - Abatement of
Real Estate Taxes, Section 102-113 - Qualifications
FIRST READING - PROPOSED ORDINANCE #2019-21 - ADOPTION OF THE 2019
COMPREHENSIVE PLAN
Council President Hare reminded the public that copies of the proposed ordinance are available at
the entrance of the Council Chambers, on the City's website at www.cityofdover.com under
"Government," or by contacting the City Clerk's Office at 736-7008 or cityclerk@dover.de.us.
Staff recommended referral of the amendment to the Planning Commission on Monday,
December 16, 2019 at 6:00 p.m., and that a public hearing take place during the Council Meeting
of Monday, January 13, 2020 at 7:30 p.m., at which time final action by Council will take place.
Mr. Dave Hugg, Director of Planning and Community Development, advised that the first reading
of the ordinance was the result of a year and a half project to update, revise, and prepare for adoption
of a new Comprehensive Plan for the City of Dover. He noted that they were at the final approval
stage, which includes a hearing before City Council and a hearing before the Planning Commission.
Mr. Hugg stated that they would be simultaneously submitting the final draft and their response to
the State’s Preliminary Land Use Service (PLUS) review and identifying and responding to any
certification issues or other agency comments.
Mr. Hugg advised that once the Planning Commission and City Council have acted, then the plan,
barring any issues resulting from the final State review, will be submitted to the Governor for
certification, as required under state law, and then adopted officially with an effective date of the
date of the Governor’s certification.
Mr. Hugg requested members to carefully look at the Comprehensive Plan as it becomes their bible
for the next 10 years, setting forth the policies and recommendations and programs that they will
follow to make Dover a bigger, better place to live and work and play. He called attention to the
recommendations that follow each of the main chapters, noting that Chapter 15 is the
implementation plan which sets out short term, intermediate, and long-term plan of studies, code
amendments, and other activities to make the plan a real, living document.
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CITY COUNCIL MEETING OF DECEMBER 9, 2019 PAGE 9
Mr. Sudler asked what positive and negative feedback had been received on the draft plan.
Responding, Mr. Hugg advised that they had been through a fairly extensive public review process
of the draft plan and noted the following:
• There were a number of comments from state agencies, particularly relating to clarification
of some of the recommendations and policies and a concern that the plan document itself had
not adequately described the value of the Downtown Development District program.
• There were six issues related to the private sector ranging from the land use classification of
a small parcel of property on Route 8; a comment from Dover International Speedway to
ensure that the new commercial entertainment zoning classification adequately preserves and
reflects the unique nature of their operation; and a concern about a small piece of property
on South Little Creek Road that the plan calls for an open space and natural resources.
Mr. Hugg advised that those who officially raised a concern were notified of their opportunity to
testify before both the Planning Commission and City Council, in the event that they choose to
disagree with the recommendation.
Responding to Mr. Taylor, Mr. Hugg stated that there were a number of techniques used during the
development of the plan and they are summarized in detail in Chapter 4 of the draft Comprehensive
Plan under “citizen participation.” He noted that, from the beginning of the project, the Plan has
been on the City’s website and on Facebook. Additionally, they held two recent open houses, as well
as a couple midway through the process, along with workshops. Mr. Hugg advised that the Plan
Document was made available through a survey with SurveyMonkey.
Mr. Lindell commended Staff for putting the Plan together with a limited number of individuals.
Mr. Anderson concurred, noting the increased Staff workload because of the stronger economy. He
stated that he attended one or two workshops and witnessed Staff interacting with the citizens in a
very professional manner. Mr. Hugg noted that completing the work in-house saved the taxpayers
approximately $50,000.
Mr. Neil moved for referral, as recommended. The motion was seconded by Mr. Lindell and
unanimously carried.
In accordance with Section 1-9 of the Dover Code, Council acknowledged the First Reading of the
proposed Ordinance as read by the City Clerk, by title only, as follows:
Ordinance #2019-21 - Adoption of the City of Dover 2019 Comprehensive Plan
FIRST READING - PROPOSED ORDINANCE #2019-19 AMENDING APPENDIX B -
ZONING
Council President Hare reminded the public that copies of the proposed ordinance were available
at the entrance of the Council Chambers, on the City’s website at www.cityofdover.com under
“Government,” or by contacting the City Clerk’s Office at 736-7008 or cityclerk@dover.de.us.
Since the ordinance amends the Zoning Code, a public hearing is required. Staff recommended
referral of the amendments to the Planning Commission on January 21, 2020 and that a public
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CITY COUNCIL MEETING OF DECEMBER 9, 2019 PAGE 10
hearing be set for the Council Meeting of February 10, 2020 at 7:30 p.m., at which time final action
by Council will take place.
Mr. Dave Hugg, Director of Planning and Community Development, noted that the ordinance would
amend the list of uses allowed in the RG-O (General Residence and Office) zone to allow a barber
shop.
Mr. Slavin moved to refer the amendments and set a public hearing before City Council for
February 10, 2020 at 7:30 p.m., as recommended by staff. The motion was seconded by
Mr. Neil 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:
Ordinance #2019-19 Amending Appendix B - Zoning, Article 3 - District Regulations,
Section 9 - General Residence and Office Zoning (RG-O)
(Council Committee of the Whole/Legislative, Finance, and Administration Committee)
REZONING REQUEST FOR PROPERTY LOCATED AT 4 LAKEVIEW DRIVE - FIRST
READING OF PROPOSED ORDINANCE #2019-22
A request was received to rezone property located at 4 Lakeview Drive, consisting of 0.63+/- acres,
owned by William E. Ardito. The property is currently zoned R-7 (One-Family Residence) and the
proposed zoning is RG-1 (General Residence). (Tax Parcel: ED-05-068.13-01-08.00-000; Planning
Reference: Z-20-01; Council District: 3)
Mr. Hugg advised that the property owner was requesting the rezoning to allow for a bed and
breakfast, which is not allowed in the current R-7 zoning district.
Prior to amending the zoning ordinances and zoning map of the City of Dover, a public hearing is
required.
Mr. Slavin moved to refer the request to the Planning Commission on January 21, 2020 and
set a public hearing for February 10, 2020 at 7:30 p.m. The motion was seconded by Mr. Neil
and unanimously carried.
In accordance with Section 1-9 of the Dover Code, Council acknowledged the First Reading of
Proposed Ordinance #2019-22 as read by the City Clerk, by title only, as follows:
An Ordinance Amending the Zoning Ordinance and Zoning Map of the City of Dover by
Changing the Zoning Designation of Property Located at 4 Lakeview Drive
(Council Committee of the Whole/Legislative, Finance, and Administration Committee)
CITY MANAGER'S ANNOUNCEMENTS
Mrs. Donna Mitchell, City Manager, reminded members that the Light Up the Holidays Parade was
scheduled for December 14, 2019 at 6:30 p.m. She also noted that there would be no meetings on
December 23rd or December 24th.
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CITY COUNCIL MEETING OF DECEMBER 9, 2019 PAGE 11
COUNCIL MEMBERS' ANNOUNCEMENTS
Council President Hare wished everyone a happy holiday.
Mr. Neil extended holiday greetings to those who would be celebrating Hanukkah. He also
complimented the Electric Department on the handling of the two recent outages that were caused
by squirrels, noting that they were quick to respond and kept them informed with a good sense of
humor.
Mr. Sudler thanked Councilman Ralph Taylor and others who reached out to him wishing him a safe
return to Dover from Phoenix, Arizona, where he was completing his doctoral studies and preparing
for his proposal defense for his dissertation topic. He stated that he was excited to be back to take
care of the public's business.
Mr. Polce announced that, based on feedback that Councilman Lindell and he received from the
community, they are going to host a Town Hall meeting on Monday, January 6, 2020 from 6:30 p.m.
to 7:30 p.m. and encouraged people to come out to discuss the proposed move for The Interfaith
Mission. He stated that he hoped that the constituents that they have heard from would attend to
have a conversation with the Interfaith leadership team. Mr. Polce advised that they would be
following up with specific details in the coming days.
Mr. Taylor relayed the following sentiments to everyone: “Happy holidays. Happy, safe holidays.
Take a break, relax, sleep until your eyes pop open. Just have a great time. I want to make us aware
that there is a population out here that is not as fortunate as us. Anything that we can do to help
coats, shoes, socks, pillows, anything that we can do to help. If you want to drop it off at my house,
please do so. We're out and about and we're trying to make a difference.”
Mr. Taylor advised that they would be discussing information about the homeless population and
what they can do to help at the next Council Committee of the Whole meeting. He advised that there
were people who want to speak to them as a whole about some of the projects that they have going
on and how they want to collaborate with the City of Dover.
Mr. Anderson wished everyone a Merry Christmas and Happy Hanukkah, noting that he was looking
forward to a blessed and a new year in the City of Dover.
Mr. Neil moved for adjournment, seconded by Mr. Slavin and unanimously carried.
Meeting adjourned at 7:55 p.m.
TRACI A. McDOWELL
CITY CLERK
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CITY COUNCIL MEETING OF DECEMBER 9, 2019 PAGE 12
All ordinances, resolutions, motions, and orders adopted by City Council during their Regular
Meeting of December 9, 2019, are hereby approved.
ROBIN R. CHRISTIANSEN
MAYOR
/TM
S:\AGENDAS-MINUTES-PACKETS-PRESENTATIONS-ATT&EXH\Council-Minutes\2019\12-09-2019 Council Minutes.wpd
Exhibits
Exhibit #1 - Investment Policy, as amended
Page 13
EXHIBIT #1
Regular Council Meeting of 12/09/2019
City of Dover, DE
Investment Policy Statement
Dated November 15, 2018
Page 14
1.0 Governing Authority
It is the policy of the City of Dover to invest public funds under its control in a manner
that will provide the highest investment return consistent with the maximum safety of
principal, while meeting cash flow needs of the City. The investment program shall
conform to all state and local statutes governing the investment of public funds.
2.0 Scope
This Investment Policy Statement (the “Policy”) applies to all financial assets of the City
of Dover for which the City retains direct or indirect daily control. Funds for which the
City has retained outside fund manager(s) shall also be governed by this Policy or, in the
case of bond proceeds, related governing bond documents.
2.1 Accounts
2.1.1 Cash and Liquidity Accounts: The majority of the City’s cash balance
available for investment is maintained in the cash and liquidity accounts.
These accounts will be managed and invested by investment managers,
selected by the City Council through competitive bid, in order to maximize
the return to the City while, at the same time, providing for safety of principal
and sufficient liquidity for the City to meet its cash needs. The City will
manage its short-term investments to ensure sufficient liquidity and prevent
their premature sale for the purpose of covering expenditures. Short-term
investments should mature at face value in sufficient amounts to meet any
liquidity needs.
2.1.2 Reserve Cash (Intermediate) Account: To the extent cash is not expected to
be needed on short notice, the City shall invest such funds in the Reserve Cash
Account. This fund shall be managed and invested by an investment
manager or managers, selected by the City Council after a competitive bid, in
order to maximize the return on said money to the City while providing for
the safety of principal.
All of the City of Dover’s funds are accounted for in its Comprehensive Annual Financial
Report. Those funds to which this Policy applies include (excluding the Deferred
Compensation Plan and Pension Trusts):
2.2 Funds
2.2.1 General Fund
2.2.2 Capital Project Funds
2.2.3 Special Revenue Funds
2.2.4 Enterprise Funds
2.2.5 Internal Service Funds
2.2.6 Any new fund created by the City Council, unless specifically exempted
3.0 Objectives
The primary objectives of the City of Dover’s investment activities, in order of importance
shall be:
Investment Policy Page 2 of 15
Page 15
3.1 Safety
Preservation of principal is the foremost objective of the investment program. To
attain this objective, funds shall be diversified among securities of high credit
quality and liquidity, so that risk of loss of principal is minimized.
3.2 Liquidity
The City’s investments shall be made for such periods as to enable the City to meet
all operating requirements that may be scheduled or reasonably anticipated.
3.3 Return on Investments
A goal of the investment program shall be to maximize investment return within
the constraints of Sections 3.1 and 3.2.
4.0 Delegation of Authority
Authority to manage the City of Dover’s investment program is derived from this Policy,
which is approved by City Council, and “Dover Code, PART I, Subpart A, Article II,
Section 17" (attachment B) which states in part that “The Controller/Treasurer shall be the
custodian of all of the City funds.”
The City’s Controller/Treasurer shall:
1) Review this Policy annually and recommend changes, if any, to City Council;
2) Be charged with implementing the Policy, and may delegate authority to make
investments to an investment advisor. The Controller/Treasurer shall be responsible
for all investment transactions and shall establish controls to regulate the activities of
the investment advisor, if any.
3) Ensure that records of the City’s investment activities are kept for ten years.
5.0 Prudence, Ethics and Conflicts of Interest
Any official of the City or investment advisor/manager empowered to make investments
on behalf of the City of Dover shall comply with the following:
5.1 “Prudent Person” Rule
Investment decisions shall be made with the judgment and care which persons of
reasonable intelligence, under circumstances prevailing at the time the investment
is made, would exercise in the management of their own investments assuming that
their objectives are those shown in Section 3.0 of this policy.
5.2 Ethics and Conflict of Interest
The delegate authorized to make City investments shall act at all times in an ethical
manner, and shall not engage in activity that could impair or be perceived to impair
their ability to make impartial investment decisions. They shall disclose to the
Mayor and City Council any material interests in financial institutions with which
the City has financial dealings, and which may be related to the performance of the
investment program. Employees and officers shall refrain from undertaking
personal investment transactions with the same individual(s) with whom business
is conducted on behalf of the City.
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6.0 Authorized Institutions and Dealers
All broker/dealers that desire to become qualified for investment transactions with the City
shall meet the following:
1. Primary dealers and regional dealers that qualify under Securities and Exchange
Commission Rule 15C3-1 (uniform net capital rule)
2. Capital of at least $25,000,000 or capital of $5,000,000 for firms incorporated in
the State of Delaware
3. Registered as a dealer under the Securities Exchange Act of 1934
4. Member of the Financial Industry Regulatory Authority (FINRA)
5. Registered to sell securities in the State of Delaware
6. Engaged in the business of effecting transactions in U.S. government, federal
agency, and corporate securities for at least five (5) consecutive years
To the extent the City utilizes the services of an outside Investment Advisor, it shall be the
responsibility of the Investment Advisor to maintain an approved list of brokers.
7.0 Safekeeping and Custody
To ensure that securities are deposited in an eligible financial institution prior to the release
of funds, all trades of marketable securities will be executed by delivery vs. payment
(“DVP”).
Further, all securities will be held by an independent third-party custodian, in the name of
the City, and evidenced by safekeeping receipts in the City’s name. The custodian shall
provide daily confirmation of held securities as well as a monthly transactions and holdings
report.
8.0 Authorized Investments and Trading of Securities
The Controller/Treasurer or authorized delegate may invest only in the types of securities
listed below. The maximum stated maturity of any security shall be limited to 10 years at
settlement, unless otherwise stated. The maximum average maturity of the portfolio shall
be seven years. For asset backed and Agency mortgage backed securities, the maximum
maturity shall be defined as the weighted average life (“WAL”). WAL is a convention
that estimates the expected weighted amount of time, in years, for the principal amount of
an issue to be fully paid. For Agency mortgage backed securities, WAL shall be limited
to 10 years, measured at the settlement date, provided by Bloomberg Financial Markets.
For asset backed securities, the average life must not exceed two years, except for such
securities that are subject to periodic reset of coupon or interest rate - - these may have an
average life not to exceed three years.
8.1 United States Government Securities
Marketable securities issued by the U.S. Government and supported by the full faith
and credit of the U. S. Treasury either by statue or an opinion of the attorney general
of the United States. The maximum maturity shall be limited to 10 years. Up to
100% of the portfolio may be invested in this sector.
8.2 Government Agency Securities
Debt securities issued by government-sponsored enterprises (“GSE”), federal
agencies, federal financing banks, and instrumentalities of the U.S. Government.
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The maximum maturity shall be limited to 10 years. Up to 50% of the portfolio may
be invested in this sector, with a maximum of 20% in any one issuer.
8.3 Certificates of Deposit and Time Deposits
8.3.1 Domestic Institutions: Issued or endorsed by a domestic bank, or a savings
and loan association, organized and supervised under the laws of the United
States and denominated in U.S. dollars; provided, however, that deposits are
fully insured or guaranteed by the Federal Deposit Insurance Corporation
(“FDIC”).
If not insured by the FDIC:
➢ The banking institution must have assets of not less than $5 billion; and
➢ Issuers must have a short-term rating in the highest category by Standard
& Poor’s, Moody’s, or Fitch and a long-term rating of at least the “A”
category by Standard & Poor’s, Moody’s, or Fitch.
The maximum maturity of any investment in this sector shall be limited to 10
years at trade settlement. This sector shall not exceed 25% of the total
portfolio. No single issuer shall exceed 5% of the City’s portfolio.
8.3.2 Delaware-Domiciled Institutions: Issued by or endorsed by any bank or
savings association domiciled in the State of Delaware and organized and
supervised under federal or State of Delaware banking laws which does not
meet the requirements of Section 8.3.1 hereto; provided, however, that:
➢ For each of the latest two years, the bank or association has had a return
on total average assets of 0.50% or greater and an average capital ratio
(defined as total equity capital to total assets) of at least 1 to 20, or the
instrument is secured as set forth in Section 9, “Collateralization of City
Deposits,” hereto; and
➢ Not more than the lesser of $10 million or 25% of an issuer’s total equity
capital, may be invested in any one issuer. (Investments due to mature
in one business day may be excluded from the computation of this
percentage.)
➢ The Board expressly affirms that, consistent with these guidelines,
Delaware banks and savings associations should be considered as a source
of investment.
➢ The maximum stated maturity of any investment in this sector shall be
limited to 10 years at time of purchase. This sector shall not exceed 20%
of the total portfolio. No single issuer shall exceed 5% of the City’s
portfolio.
8.4 Corporate Debt Instruments
Such instruments include commercial paper bankers’ acceptances, and non-
convertible senior debt securities (bonds and debentures).
8.4.1 Corporate securities must be denominated/issued in US dollars. Many foreign
corporations issue debt/securities in the US market, in US dollars.
8.4.2 No single issuer shall exceed 5% of the City’s portfolio.
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8.4.3 Commercial Paper shall be limited to a final maturity of 270 days. This
sector shall not exceed 25% of the total portfolio. Issuers shall be rated in
the highest short-term category by Standard & Poor’s, Moody’s, or Fitch.
8.4.4. Bankers’ Acceptances shall be limited to a final maturity of 365 days. This
sector shall not exceed 25% of the City’s Portfolio. Issuers shall be rated in
the highest short-term rating by Standard & Poor’s, Moody’s, or Fitch.
8.4.5 Corporate bonds and debentures shall be limited to a final maturity of 10
years. This sector shall not exceed 50% of the total portfolio. Issuers
shall hold a long-term rating of at least the “A” category by Standard &
Poor’s, Moody’s, or Fitch.
8.5 Repurchase Agreements
The underlying collateral shall consist of U.S. government and/or GSE securities
provided, however, that:
8.5.1 All repurchase agreements must be governed by a written master repurchase
agreement;
8.5.2 Agreements will be entered into only with respect to underlying securities in
which the investment manager may otherwise invest as described above, and
only with a recognized U.S. Government/broker or a bank which meets the
requirements set out under paragraph Section 8.3.1 or 8.3.2 above;
8.5.3 In the case of repurchase collateral held in book-entry form in the Federal
Reserve System, all deliveries of securities must be made, for the transfer
thereof, through the Federal Reserve book-entry system to the account
designated by the investment manager for such purpose. Securities held in
certificated form must be delivered to the investment manager or a custodian
as directed by the investment manager.
8.5.4 Any collateral employed under this paragraph shall be counted towards the
applicable maximum limits set forth within these guidelines for such type of
investment, and such collateral shall be valued at market at not less than 103
percent of the maturity value of the agreement and marked-to-the-market as
requested by the investment manager.
8.5.5 Repurchase agreements shall be limited to a maximum maturity of 90 days
from date of purchase. This sector shall not exceed 50% of the total portfolio.
No single issuer shall exceed 25% of the City’s portfolio.
8.6 Registered Investment Companies (Money Market Funds)
No single fund shall exceed 25% of the City’s portfolio. Money market funds shall
be rated AAA by Standard & Poor’s. A current prospectus must be obtained
before investing in any money market fund, and current holdings reports must be
maintained at least each month.
8.7 Mortgage-Backed Securities
Mortgage-backed securities issued by the following: Government National
Mortgage Association (GNMA), Federal National Mortgage Association (FNMA)
or Federal Home Loan Mortgage Association (FHLMC). This sector, combined
with the asset backed security sector, shall not exceed 10% of the total portfolio.
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8.8 Asset Backed Securities
These investments include auto loan receivables, credit card receivables, home
equity loans, and manufactured housing loans. These can be fixed or floating rate
and must be rated in the highest long-term category by Standard & Poor’s,
Moody’s, or Fitch. This sector, combined with the mortgage-backed security sector,
shall not exceed 10% of the City’s portfolio. No single issuer shall exceed 5% of
the City’s portfolio.
8.9 Municipal Obligations
Taxable and tax-exempt securities issued by state and local governments and public
authorities in the United States. The maximum stated maturity of any investment
in this sector shall be limited to 10 years at time of purchase. This sector shall not
exceed 20% of the City’s portfolio. No single issuer shall exceed 5% of the City’s
portfolio. Issuers shall be rated in at least the “A” category by Standard & Poor’s,
Moody’s, or Fitch. Additionally, Issuers in the short term market (under one year)
shall be rated at a minimum of “mig-1”, “f1” or “sp-1” for Moody’s, Fitch and
Standard &Poor’s.
8.10 State of Delaware Investments Pool
8.10.1 Delaware Local Government Investment Pool (DELGIP) -The investment in
this pool is permitted in relation to the City's cash flow and the guidelines set
forth by the State of Delaware. The investment in this pool will not exceed
25% of the total funds available and will be monitored by the City's Finance
Department on a monthly basis.
8.10.2 Delaware Local Government Retirement Investment Pool (DELRIP) The
investment in this pool is permitted in relation to the City's Post-Retirement
Benefits Fund. The investment in this pool will not exceed 25% of the total
funds available and will be monitored by the City's Finance Department on a
monthly basis.
8.11 Trading Securities
The Controller/Treasurer is hereby authorized to sell securities prior to their stated
maturity date in the following circumstances:
1. A security with declining credit may be sold prior to its maturity to minimize
loss of principal;
2. A security swap may be executed if it would improve the quality, yield, or
target duration of the portfolio;
3. Securities may be sold to provide needed liquidity.
8.12 Internal Control on such transactions
8.12.1 An investment report will be provided to the Council on a quarterly basis.
8.12.2 All investment reporting documents will be provided to the independent
auditors.
8.12.3 Investment records will be kept by the City for ten (10) years.
8.12.4 The trading shall not involve any hedge, derivatives and/or borrowing funds
for trading purposes.
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A summary of permitted investments is below:
Investment Sector Issuer Maturity Credit Quality
Type Limit Limit Limit Minimum
United States Government
100% 100% 10 Years N/A
Securities
Government Agency
50% 20% 10 Years N/A
Securities
Mortgage-Backed Securities N/A 10 Year WAL N/A
Combined
10% limit Highest long-term
Asset Backed Securities 5% 2 Year WAL rating by Fitch,
Moody's or S&P
Long-term rating of at
least “A” by S&P,
Moody’s, or Fitch
For issuers in short
Municipal Obligations 20% 5% 10 Years term market, rating of
at least “mig-1”, “f1
or “sp-1” for
Moody’s, Fitch &
S&P
FDIC-Insured Deposits 25% 5% 10 Years N/A
Highest short-term
rating by Fitch,
Certificates of Deposit and
Moody's or S&P.
Time Deposits (not insured 25% 5% 10 Years
Long-term rating of at
by FDIC)
least “A” by S&P,
Moody’s, or Fitch
Delaware-Domiciled
20% 5% 10 Years N/A
Institutions
Highest short-term
Commercial Paper 25% 5% 270 Days rating by Fitch,
Moody's or S&P
Highest short-term
Bankers’ Acceptances 25% 5% 365 Days rating by Fitch,
Moody's or S&P
Long-term rating of at
Corporate Bonds and
50% 5% 10 Years least “A” by S&P,
Debentures
Moody’s, or Fitch
Repurchase Agreements 50% 25% 90 days N/A
Registered Investment
Companies (Money Market 100% 25% N/A AAAm by S&P
Funds)
Delaware Local Government
25% N/A N/A N/A
Investment Pool
Delaware Local Government
25% N/A N/A N/A
Retirement Investment Pool
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9.0 Collateralization of City Deposits
If the City deposits funds in any financial institution, those funds will be subject to the
following collateralization requirements. The financial institution shall:
9.1 Collateralize the City’s daily ledger balance(s) if, for any quarter during the most
recent eight quarters the bank has not met both of the following two criteria:
➢ Return on total average assets of 0.50 percent or greater.
➢ Average capital ratio (total equity to total assets) of 5.00 percent or greater.
9.2 If either criterion in paragraph 9.1 is not satisfied collateral must be pledged and shall
consist of one or more of the following securities:
➢ U.S. Government securities
➢ U.S. Government agency securities
➢ Federal Home Loan Board letters of credit
➢ State of Delaware securities
➢ Mortgage backed securities as referenced in Section 8.7
➢ Securities of a political subdivision of the State of Delaware with a Moody’s
rating of “A” or better
9.3 Ensure that the securities pledged as collateral (except for Federal Home Loan Board
letters of credit) have a market value equal to or greater than 102 percent of the ledger
balance(s) in the account(s) marked to market each day.
9.4 Ensure that securities pledged as collateral are housed at the Federal Reserve Bank
or a mutually agreed upon third party depository. (The trust department of the
winning vendor will not be acceptable.)
9.5 Provide reports on a monthly basis to the City Finance Department detailing the
collateral pledged.
9.6 Provide a Call Report (Consolidated Report of Condition and Income, FFIEC 031)
on a quarterly basis to the City Finance Department.
10.0 Policy Considerations
If securities owned by the City are downgraded by either Standard & Poor’s, Fitch or
Moody’s to a level below the quality required by this Policy, it shall be the City’s policy
to review the credit situation and make a determination as to whether to sell or retain such
securities in the portfolio.
If a security is downgraded two grades below the level required by the Policy, the security
shall be sold immediately.
If a security is downgraded one grade below the level required by this Policy and matures
within 6 months, the security may be held to maturity. The Controller/Treasurer may
determine to sell the security if it is determined that there is a probability of default prior
to maturity.
If a decision is made to retain a downgraded security in the portfolio, its presence in the
portfolio will be monitored and reported monthly to the Controller/Treasurer.
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11.0 Internal Controls
The Controller/Treasurer is responsible for establishing and maintaining an internal control
structure designed to ensure that the assets of the City are protected from loss, theft, or
misuse. The Controller/Treasurer shall also establish a process for an annual independent
review by an external auditor to assure compliance with policies and procedures. The
internal controls shall address the following:
➢ Control of collusion
➢ Separation of transaction authority from accounting and recordkeeping
➢ Custodial safekeeping
➢ Prohibition of physical delivery securities
➢ Clear, written delegation of authority to subordinate staff members
➢ Written confirmation of transactions for investments and wire transfers
12.0 Performance Standards
The City of Dover’s investment decisions shall be made with the objective of obtaining a
rate of return commensurate with the investment risk constraints and the cash flow needs.
On a quarterly basis, the Controller/Treasurer shall compare the City’s portfolio against the
Merrill Lynch 0-5 Year U.S. Treasury Index, in terms of time-weighted total return and
average duration for the period under review.
13.0 Reporting
At the end of each calendar quarter, the Controller/Treasurer will submit a report of all
quarter-ending investments to the Mayor and City Council. Reports shall include the
following:
➢ Listing of individual securities held as of last day of reporting period, sorted by
sector
➢ Par, market, and amortized cost values of each security
➢ Coupon, current yield, and final stated maturity date of each security
14.0 Investment Policy Adoption
The City of Dover’s investment policy will be adopted by the City Council after review and
recommendation of the Legislative and Finance Committee. The policy will be reviewed at
least once every year by the Legislative and Finance Committee, which is charged with
considering the existing policy and any recommendations to modify the policy. Any
modifications to the policy must be approved by the City Council.
LEGEND
1. Original approval by City Council - November 14, 1988
2. Revised policy approved by City Council - March 7, 2005
3. City Council Approved with No Changes – April 14, 2008
4. Revised policy approved by City Council – July 25, 2011
5. Revised policy approved by City Council – August 12, 2013.
6. Revised policy approved by City Council – September 8, 2014
7. Revised policy approved by City Council – October 10, 2016
8. Revised policy approved by City Council – October 23, 2017
9. City Council Approved with No Changes – December 10, 2018
10. Revised policy approved by City Council – December 9, 2019
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ATTACHMENT A
GLOSSARY
AGENCIES: Federal agency securities, otherwise known as “Government Sponsored
Enterprises.”
CERTIFICATE OF DEPOSIT (CD): A time deposit with a specific maturity evidenced by a
certificate. Large denomination CD's are typically negotiable.
BANKERS ACCEPTANCE: A short-term credit investment which is created by a non-
financial firm and whose payment is guaranteed by a bank.
COLLATERAL: Securities, evidence of deposit or other property which a borrower pledges to
secure repayment of a loan. Also refers to securities pledged by a bank to secure deposits of
public monies.
COMMERCIAL PAPER: An unsecured obligation issued by a corporation or bank to finance
its short-term credit needs. Maturities typically range from one (1) to 270 days.
COMPREHENSIVE ANNUAL FINANCIAL REPORT (CAFR): The official annual report
for the City of Dover. It includes five combined statements for each individual fund and account
group prepared in conformity with GAAP. It also includes supporting schedules necessary to
demonstrate compliance with finance-related legal and contractual provisions, extensive
introductory material, and a detailed Statistical Section.
CORPORATE BONDS: A debt security issued by a corporation based in the United States of
America. Such bonds usually have a par value of $1,000, have a term maturity, and are traded on
a major exchange.
DEALER: A dealer, as opposed to a broker, acts as a principal in all transactions, buying and
selling for his own account.
DIVERSIFICATION: Dividing investment funds among a variety of securities offering
independent returns, in an attempt to limit risk.
FEDERAL CREDIT AGENCIES: Agencies of the Federal government set up to supply credit
to various classes of institutions and individuals, e.g., S&L's, small business firms, students,
farmers, farm cooperatives, and exporters.
FEDERAL DEPOSIT INSURANCE CORPORATION (FDIC): A federal agency that
insures bank deposits, currently up to $250,000 per deposit.
FEDERAL FUNDS RATE: The rate of interest at which Fed funds are traded. This rate is
currently pegged by the Federal Reserve through open-market operations.
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FEDERAL HOME LOAN BANKS (FHLB): The institutions that regulate and lend to savings
and loan associations. The Federal Home Loan Banks play a role analogous to that played by the
Federal Reserve Banks vis-a-vis member commercial banks.
FEDERAL NATIONAL MORTGAGE ASSOCIATION (FNMA): FNMA, like GNMA was
chartered under the Federal National Mortgage Association Act in 1938. FNMA is a federal
corporation working under the auspices of the Department of Housing and Urban Development
(HUD). It is the largest single provider of residential mortgage funds in the United States.
Fannie Mae, as the corporation is called, is a private stockholder-owned corporation. The
corporation's purchases include a variety of adjustable mortgages and second loans, in addition to
fixed-rate mortgages. FNMA's securities are also highly liquid and are widely accepted.
FEDERAL RESERVE SYSTEM: The central bank of the United States created by Congress
and consisting of a seven member Board of Governors in Washington, D.C., 12 regional banks
and about 5,700 commercial banks that are members of the system.
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION (GNMA or Ginnie Mae):
Securities influencing the volume of bank credit guaranteed by GNMA and issued by mortgage
bankers, commercial banks, savings and loan associations, and other institutions. Security holder
is protected by full faith and credit of the U.S. Government. Ginnie Mae securities are backed by
the FHA, VA or FMHM mortgages. The term "passthroughs" is often used to describe Ginnie
Mae's.
LIQUIDITY: A liquid asset is one that can be converted easily and rapidly into cash without a
substantial loss of value. In the money market, a security is said to be liquid if the spread between
bid and asked prices is narrow and reasonable size can be done at those quotes.
LOCAL GOVERNMENT INVESTMENT POOL (LGIP): The aggregate of all funds from
political subdivisions that are placed in the custody of the State Treasurer for investment and
reinvestment.
MARKET VALUE: The price at which a security is trading and could presumable be purchased
or sold.
MATURITY: The date upon which the principal or stated value of an investment becomes due
and payable.
MORTGAGE-BACKED SECURITIES (MBS): An investment instrument that represents
ownership of, and is backed by, an individual interest in a pool of mortgages such as those issued
by Ginnie Mae or Freddie Mac. Principal and interest from the individual mortgages is used to
pay principal and interest on the MBS.
MUNICIPAL NOTES AND BONDS: Securities issued by a state, city, or local government to
finance operations or special projects.
PRUDENT PERSON RULE: An investment standard. In some states the law requires that a
fiduciary, such as a trustee, may invest money only in a list of securities selected by the custody
state--the so-called legal list. In other states the trustee may invest in a security if it is one which
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would be bought by a prudent person of discretion and intelligence who is seeking a reasonable
income and preservation of capital.
QUALIFIED PUBLIC DEPOSITORIES: A financial institution which does not claim
exemption from the payment of any sales or compensating use or ad valorem taxes under the laws
of this state, which has segregated for the benefit of the commission eligible collateral having a
value of not less than its maximum liability and which has been approved by the Public Deposit
Protection Commission to hold public deposits.
RATE OF RETURN: A measure of worth, either at security or aggregate portfolio level, over
a period of time. There are many return conventions, including but not limited to yield to maturity
at cost, yield to maturity at market, yield to worst, time weighted total return, dollar weighted total
return.
REPURCHASE AGREEMENT (RP OR REPO): A holder of securities sells these securities
to an investor with an agreement to repurchase them at a fixed price on a fixed date. The security
"buyer" in effect lends the "seller" money for the period of the agreement, and the terms of the
agreement are structured to compensate him for this. Dealers use RP extensively to finance their
positions. Exception: When the Fed is said to be doing RP, it is lending money, that is,
increasing bank reserves.
REVERSE REPURCHASE AGREEMENT: The purchase of a security by a dealer with the
agreement to sell it back to the seller at a fixed price at a later date. Typically used by owners of
securities to finance short-term needs without having to liquidate the security.
SAFEKEEPING: A service to customers rendered by banks for a fee whereby securities and
valuables of all types and descriptions are held in the bank's vaults for protection.
TIME DEPOSITS: A savings account or CD held for a fixed term or with the understanding
that the customer can withdraw only by giving advanced notice.
TREASURY BILLS: A short-term (less than one year) non-interest bearing discount security
issued by the U.S. Treasury department to finance the national debt. Most bills are issued to
mature in three months, six months, or one year.
TREASURY BOND: Long-term U.S. Treasury securities having initial maturities of more than
10 years.
TREASURY NOTES: A non-interest bearing discount security issued by the U.S. Treasury to
finance the national debt. Most bills are issued to mature in three months, six months or one year.
UNIFORM NET CAPITAL RULE: Securities and Exchange Commission requirement that
member firms as well as nonmember broker-dealers in securities maintain a maximum ratio of
indebtedness to liquid capital of 15 to 1: also called net capital rule and net capital ratio.
Indebtedness covers all money owed to a firm, including margin loans and commitments to
purchase securities, one reason new public issues are spread among members of underwriting
syndicates. Liquid capital includes cash and assets easily converted into cash.
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VARIABLE RATE MASTER DEMAND NOTES: A floating rate security with initial
maturities and indexed rates chosen by the investor. The interest rate is adjusted periodically,
usually off a standard such as that prevailing on a Treasury Bill or the prime interest rate.
YIELD: The rate of annual income return on an investment, expressed as a percentage.
INCOME YIELD is obtained by dividing the current dollar income by the current market price
for the security.
NET YIELD or YIELD TO MATURITY is the current income yield minus any premium above
par or plus any discount from par in purchase price, with the adjustment spread over the period
from the date of purchase to the date of maturity of the bond.
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ATTACHMENT B
Dover, Delaware, Code of Ordinances >> PART I - CHARTER AND RELATED LAWS
PART I - CHARTER AND RELATED LAWS [1]
Subpart A - CHARTER
PREAMBLE [3]
We the people of the City of Dover, under the constitution and laws of the state
of Delaware, in order to secure the benefits of local self-government and to provide for an
honest and accountable council-manager government, do hereby adopt this charter and
confer upon the city the following powers, subject to the following restrictions, and
prescribed by the following procedures and governmental structure. By this action, we
secure the benefits of home rule and affirm the values of representative democracy,
professional management, strong political leadership, citizen participation, and regional
cooperation.
ARTICLE I. - POWERS OF THE CITY
ARTICLE II. - MAYOR AND COUNCIL
Sec. 17. - Controller/treasurer.
At the annual meeting the council shall elect a controller/treasurer to hold office
until the next annual meeting of the council, or until his/her successor has been duly
chosen and qualified, but subject to removal at any time by the council.
The controller/treasurer shall be the custodian of all the city funds and shall
deposit them in a banking institution designated by the council.
(Amd. of 7-12-2005 (S.B. 126); Amd. of 7-8-2009 (S.B. 165, § 15))
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