Attachment

SPECIAL COUNCIL MEETING - BUDGET REVIEW AGENDA CITY HALL COUNCIL CHAMBERS - 15 LOOCKERMAN PLAZA - DOVER, DELAWARE REVISED 06/01/2015 MAY 27 and MAY 28, 2015 1. Introduction and Presentation 2. Summaries of Fund Revenue and Expenses 3. Personnel Information 4. Revenue Review 5. Division Budget Reviews JUNE 1, 2015 - 6:00 p.m. (Continuation of Recessed Meeting of May 28, 2015) Agenda Additions/Deletions 1. Tribute No. 2015-01 - Joseph R. “Beau” Biden, III 2. Division Budget Reviews (Continued). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (6:00 - 6:30 p.m.) 3. Review of Capital Investment Plan (CIP). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (6:30 - 7:15 p.m.) 4. Financial Forecast by Fund A. General Fund. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (7:15 - 7:30 p.m.) B. Break.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (7:30 - 7:45 p.m.) C. Water/Wastewater Fund. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (7:45 - 8:00 p.m.) D. Electric Fund. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (8:00 - 8:15 p.m.) 5. City Policies and Procedures. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (8:00 - 8:15 p.m.) A. Financial Policy B. Budget Amendment Procedure 6. Questions, Answers, and Open Discussion. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (8:15 - 9:00 p.m.) JUNE 2, 2015 - 6:00 p.m. (Continuation of Recessed Meeting of June 1, 2015) Agenda Additions/Deletions 1. Responses to Council Members’ Questions and Inquiries.. . . . . . . . . . . . . . . . . . . (6:00 - 7:00 p.m.) 2. Questions, Answers, Open Discussion, and Markup. . . . . . . . . . . . . . . . . . . . . . . . (7:00 - 9:00 p.m.) JUNE 3, 2015 - 6:00 p.m. (Continuation of Recessed Meeting of June 2, 2015) Agenda Additions/Deletions 1. Responses to Council Members’ Questions and Inquiries.. . . . . . . . . . . . . . . . . . . (6:00 - 7:00 p.m.) 2. Questions, Answers, Open Discussion, and Markup. . . . . . . . . . . . . . . . . . . . . . . . (7:00 - 9:00 p.m.) (All of the Above Times Are Estimated and Are Subject to Change Based on Length of Discussion) /tm S:\AGENDAS-MINUTES-PACKETS-PRESENTATIONS-ATT&EXH\Council-Agendas\2015\05-27-2015 Budget Review-REVISED 06-01-2015.wpd THE AGENDA ITEMS AS LISTED MAY NOT BE CONSIDERED IN SEQUENCE. THIS AGENDA IS SUBJECT TO CHANGE TO INCLUDE THE ADDITION OR THE DELETION OF ITEMS, INCLUDING EXECUTIVE SESSIONS.

FY 2015 — 2016 DRAFT BUDGET WITH 2016 — 2020 CAPITAL INVESTMENT PLANS 1

CITY OF DOVER, DELAWARE FY 2015 – 2016 DRAFT BUDGET WITH 2016 – 2020 CAPITAL INVESTMENT PLANS SECTION PAGE INTRODUCTORY SECTION City Manager’s Letter............................... 4 City of Dover Vision................................ 6 City Organizational Chart........................... 7 BUDGET SUMMARY Highlights of Overall Budget....................... 8 Rate & Fee Trends............................. 41 FUND SUMMARIES & RESERVE ACCOUNTS All Funds Summary................................... 43 General Fund Cash Receipt Summary........................... 44 Expense Summary................................ 45 Governmental Capital Projects....................... 50 Water/Wastewater.................................... 51 Electric............................................ 56 Charter Article IV, Sec44 & Financial Policies Sec. 44 – Annual Budget............................. 62 Financial Policies.................................. 63 Budget Administration Guidelines.................... 72 PERSONNEL INFORMATION Personnel Table..................................... 76 Personnel Cost Summary.............................. 77 Personnel Changes – 5 Year Forecast................ 78 Overtime Trends FY13 through FY16 Comparison................... 80 FIVE YEAR FORECAST SUMMARY General Fund........................................ 83 Water/Wastewater Fund............................... 92

FIVE YEAR FORECAST SUMMARY –CONTINUED PAGE Electric Revenue Fund............................... 105 CAPITAL INVESTMENT PLAN Total City Summary.................................. 122 General Funding Source Summary FY16-FY20 ................... 125 Projects by Department FY16-FY20 ................... 126 Water/Wastewater (Water/WW) Funding Source Summary FY16-FY20 ................... 138 Projects by Department FY16-FY20 ................... 139 Electric Funding Source Summary FY16-FY20 ................... 159 Projects by Department FY16-FY20 ................... 160 Vehicle Replacements General FY16-FY20 .................................. 202 Water/WW FY16-FY20 ................................. 206 Electric FY16-FY20 ................................. 209 DEBT SERVICE Debt Limit Legal Debt Margin .................................. 212 Debt Service Schedules Projected Debt Service ............................. 213 Water/WW Revenue Bonds ............................. 214 Electric Revenue Fund .............................. 215 GENERAL Budget Review FY 2015-2016.......................... 218 FY 2016 Annual Operating Budget Mayor............................................... 250 Economic Development........................... 252 City Council........................................ 254 City Manager........................................ 256 City Clerk.......................................... 258 Customer Services................................... 260 Finance............................................. 262 Procurement & Inventory........................ 263 Fire................................................ 265 Human Resources..................................... 267 Information Technology.............................. 269

GENERAL - CONTINUED PAGE Parks & Recreation.................................. 271 Library............................................. 273 Police.............................................. 275 Tax Assessor........................................ 278 Planning & Inspections Planning/CDBG....................................... 280 Life Safety......................................... 281 Code Enforcement.................................... 282 Inspections......................................... 283 Public Works Administration...................................... 285 Facilities Management............................... 286 Fleet Maintenance................................... 287 Grounds............................................. 288 Sanitation.......................................... 289 Street.............................................. 290 Public Works Engineering............................ 291 PUBLIC UTILITIES Water/Wastewater Budget Review ........................ 294 Water/WW Engineering................................ 301 Water Construction.................................. 302 Water Management.................................... 303 Wastewater Management............................... 304 Water Treatment Plant............................... 305 Electric Budget Review ................................ 307 Power Plant Operations.............................. 317 Power Supply........................................ 318 Transmission & Distribution......................... 319 Electric Engineering................................ 320 Administration...................................... 321 Meter Reading....................................... 322 System Operations................................... 323 OTHER FUNDS Municipal Street Aid................................ 325 Workers Compensation................................ 326 Community Transportation............................ 327 Library Grants...................................... 328 Police Grants....................................... 329

ANNUAL OPERATING BUDGET FOR FISCAL YEAR JULY 1,2015 - JUNE 30,2016 “COMMUNITY EXCELLENCE THROUGH QUALITY SERVICE” 2

INTRODUCTION  CITY MANAGER’S LETTER  CITY OF DOVER VISION  CITY ORGANIZATIONAL CHART

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FY 2016 ANNUAL OPERATING BUDGET – DOVER, DELAWARE VISION The City of Dover is a place where people want to live! Through the team effort of its elected officials, employees, and citizens, Dover is a clean and safe community, with a future of balanced growth and opportunity where all citizens are heard, enjoy a high quality of life, and diversity is valued. 6

FY 2016 ANNUAL OPERATING BUDGET – DOVER, DELAWARE CITY OF DOVER FISCAL YEAR 2016 ORGANIZATION CHART CITIZENS OF DOVER MAYOR & COUNCIL ECONOMIC DEVELOPMENT MAYOR COUNCIL POLICE CITY SOLICITOR PLANNING & COMMUNITY CITY MANAGER CITY CLERK FINANCE FIRE TAX ASSESSOR ENHANCEMENT SERVICES LIFE SAFETY LIBRARY CUSTOMER SERVICES PROCUREMENT/INVENTORY LIBRARY CUSTOMER SERVICE CODE ENFORCEMENT METER READING INSPECTIONS/ PUBLIC WORKS PERMITTING HUMAN RESOURCES PUBLIC WORKS PLANNING ADMINISTRATION INFORMATION TECHNOLOGY ENGINEERING & INSPECTIONS COMMUNITY ELECTRIC DEVELOPMENT GROUNDS ELECTRIC SANITATION ADMINISTRATION PARKS & RECREATION STREETS SYSTEM OPERATIONS FACILITIES MANAGEMENT ELECTRIC ENGINEERING FLEET MAINTENANCE WATER/WASTEWATER ENGINEERING ELECTRIC TRANSMISSION & DISTRIBUTION WASTEWATER MANAGEMENT WATER MANAGEMENT WATER TREATMENT 7

City of Dover Fiscal Year 2016 Proposed Budget Highlights of Overall Budget May 2015 8

General Fund Services Police*Fire*Life Safety*Code Enforcement*Planning Public Inspections*Library*Recreation*Streets Sanitation*Grounds*Facilities Management Fleet Maintenance*Public Works Administration Public Works Engineering*Mayor*Customer Service Procurement & Inventory*City Council*City Manager City Clerk*Economic Development*Tax Assessor Finance*Information Technology*Human Resources 9

Water/Wastewater Utility Engineering & Inspection Water Distribution & Well Maintenance Wastewater Distribution & Pump Station Maintenance Water Treatment Plant Capital Project Management Electric Utility Administration Engineering & Inspection Transmission & Distribution Maintenance System Operations Metering Capital Project Management 10

Policy Compliance • Revenue Policy • #7 – The City will project current revenues on a conservative basis so the actual revenues will consistently meet or exceed budgeted revenues. Revenues greater or less than the original budget will flow through to the audited Ending Budget Balance. • Expenditure Policy • #2 – The City will adopt a balanced budget, by fund, for all funds maintained by the City, in which total anticipated revenues must equal or exceed the budgeted expenditures. The Beginning Budget Balance will not be considered a revenue source. • Budget Balance Policy – General Fund • #1 – The City will strive to maintain a minimum Budget Balance, of at least 8% and no greater than 12% of the current year operating revenues for the General Fund, excluding the carry forward balance. (8.33% = 1 month, 12% = 45 days) • Budget Balance Policy – Water & Wastewater Fund • #1 – The City will strive to maintain a minimum Budget Balance, of at least 8% and no greater than 17% of the current year operating revenues for the General Fund, excluding the carry forward balance. (17% = 2 months) • Budget Balance Policy – Electric Fund • #1 – The City will strive to maintain a minimum Budget Balance, of at least 8% and no greater than 12% of the current year operating revenues for the General Fund, excluding the carry forward balance. 11

Policy Compliance (continued) General Water Wastewater Water/Wastewater Electric Fund Utility Utility Fund Fund Revenus $41,830,100 $6,824,900 $8,902,800 $15,727,700 $83,536,000 Expenses (41,825,200) (6,645,900) (8,622,300) (15,268,200) (80,616,800) Surplus/(Deficit) $4,900 $179,000 $280,500 $459,500 $2,919,200 Ending Budget Balance $3,982,400 $1,040,600 $573,900 $1,614,500 $9,096,800 % of Revenue 9.5% 15.2% 6.4% 10.3% 10.9% Beginning Budget Balance $3,977,500 $861,600 $293,400 $1,155,000 $6,177,600 12

Property Taxes • Current Property Tax Rate $.3378 • City Revaluation of Properties • Property Values Before $3,159,244,860 • Property Values After $3,050,321,691 • Revaluation Property Tax Rate $.3499 (revenue neutral) • Rate & Percentage increase $.0121 & 3.5% • Additional increase to balance General Fund Budget • Revenue increase of $2,138,300 or additional 5.4% of General Fund revenue required, major factors are public safety (police protection) and health care premiums • Proposed Property Tax Rate $.42 • Rate & Percentage increase $.0701 & 20.8% • Total Property Tax Rate Change • Rate & Percentage increase $.0822 & 24.3% 13

Public Safety – 10 Year Forecast Outlays and Receipts (Incl. Property Taxes) for Public Safety Receipts Outlays $30 $24.8 $25 $24.2 $23.7 $22.6 $23.1 $22.1 $21.5 $21.0 $20.0 $20.4 $20 $18.4 $18.6 $18.8 $17.8 $18.0 $18.2 $17.2 $17.4 $17.6 $17.0 Millions $15 $10 $5 $0 2016B 2017F 2018F 2019F 2020F 2021F 2022F 2023F 2024F 2025F 14

City Revenue – Rates & Fees • General Fund  Proposed tax increase $.0701 or 20.8% increase over the rolled- up rate (after adjusting for revaluation)  PILOT increase for State due to revaluation $30,000  Milford Housing PILOT agreement $7,500  Proposed increase in Water/Wastewater Transfers  No proposed changes for Planning & Inspection fees  No proposed business license increase  No proposed permit fee increase  No proposed sanitation fee increase  No proposed fine increases 15

City Revenue – Rates & Fees • Water/Wastewater Fund  No proposed water fee increases  No proposed sewer fee increases  No proposed impact fee increase • Electric Fund  Average Rate increase of 3.0%  Use of rate stabilization reserve for FY16 to cover increase in cash requirements due to monthly power supply fluctuations  Effective FY17 – power cost adjustment to cover increase in power supply and generation cost 16

All Major Operating Funds Personnel – FY15 Original Budget vs. FY16 Proposed • Pay increases in accordance with collective bargaining agreements • Non-Bargaining employees proposed to receive a 3% pay increase if salary is less than $85,000, or 2% increase and 1% bonus if salary is = or > $85,000 • Total Headcount – Added 14 full-time and 15 part-time positions • (See Personnel Section and individual Division pages for details) • Personnel Cost Increases – $2,233,600 over the original FY15 budget • Salary and wages increased $1,099,400 (see Personnel Section for 10 year forecast of all positions) • Police Civilian and Law Enforcement $460,600 (new officers @10 months) • Public Works Operation Manager $78,200 (@10 months) (in lieu of Field Supervisor) • Water Treatment Plant $114,700 related to staffing for Calpine • Electric $142,900 for Generation Manager/Engineer (@5 months) and additional Field Service Representative (Meter Reading) • Employer’s benefits cost increased $1,134,200 as follows • Health Care Premiums $919,800 • Worker’s Compensation $152,000 (Phasing in new rates over 3 years) • Other Post Employment Benefits (retirement medical) $100,500 • Pension & FICA net ($38,100) • Aggregates all vacation sell-back, retirement payouts, and education assistance in Other Employment Expenses 17

Medical & Pension – 3 Year Trend Employer Contributions - Medical FY 2014 FY 2015 FY 2016 Active Employee Medical $3,504,200 $3,382,200 $4,287,200 Retiree's Medical 2,349,800 2,349,800 2,612,000 OPEB - Payroll Based 1,831,500 2,034,600 2,135,100 OPEB - Electric Transfer 975,700 1,009,800 1,030,000 Total Medical Benefits $8,661,200 $8,776,400 $10,064,300 Employer Contributions - Pensions FY 2014 FY 2015 FY 2016 Active Employee Pension $4,377,400 $4,360,400 $4,232,900 Police Pension - General Fund 339,400 655,000 570,000 Total Pension Benefits $4,716,800 $5,015,400 $4,802,900 Total Medical & Pension FY 2014 FY 2015 FY 2016 Total $13,378,000 $13,791,800 $14,867,200 Operating Budget $131,278,300 $132,717,800 $137,710,200 Percentage of Operating Budget 10.19% 10.39% 10.80% 18

General Fund Revenues • Revenue increase over FY15 original Budget – $2,979,200 or 7.7% • Major increases/(decreases) affecting revenues • Property Taxes – $2,252,900 or 20.4% (includes PILOT increase $37,500) • Internal Service Allocations – $414,800 • Water/Wastewater Transfer – $350,000 • Transfer Taxes – $90,000 • Planning/Inspections Permits & Fees – $82,100 • Fines & Police Revenue – $73,000 • Extra Duty Revenue – ($126,500) • Municipal Street Aid – ($99,700) 19

General Fund Expenditures • Expenditure increase over FY15 Original Budget – $2,981,300 or 7.7% • Major increases/(decreases) affecting expenditures (see Division summaries for details) • Health Insurance Premiums – 19.7% increase • Law Enforcement Officers & Civilian employees – 12 FTE’s $460,600 • Law Enforcement Materials, Supplies & Administrative expenses – $215,800 • City Manager – $160,600 • Library – $121,100 • Planning – $102,200 • Public Works Administration – $117,800 • Retiree Health Care Premiums – $259,100 • Capital Projects – $684,200 • Police Extra Duty – ($108,700) 20

General Fund Program Receipts & Expenditures Outlays and Receipts (Incl. Property Taxes) for Governmental Activities Receipts Outlays $25 $20 $15 Millions $10 $5 $0 General Public Safety Public Works Library & Community & Central Financial Other Post Government Recreation Economic Services Administration Employment Development Benefits For the Year Ended June 30, 2016 21

General Fund - Contributions from Utilities 2006 - 2015 16,000,000 14,000,000 12,000,000 10,000,000 Electric Services W/WW Services 8,000,000 W/WW Transfer 6,000,000 Electric Transfer 4,000,000 2,000,000 - 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 General Fund Revenues $33,045,853 $33,916,889 $34,690,398 $32,577,312 $30,850,516 $35,613,979 $35,087,758 $35,837,890 $37,150,193 $39,795,600 Transfers % of Revenue 18.9% 15.4% 20.7% 22.5% 23.7% 24.9% 23.7% 23.7% 22.9% 26.4% Services % of Revenue 14.2% 14.1% 12.8% 13.5% 13.2% 11.4% 11.4% 11.8% 12.5% 12.5% 22

General Fund - Contributions from Utilities 2016 - 2025 18,000,000 16,000,000 14,000,000 12,000,000 Electric Services 10,000,000 W/WW Services 8,000,000 W/WW Transfer Electric Transfer 6,000,000 4,000,000 2,000,000 - 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 General Fund Revenues $41,830,100 $43,587,700 $44,076,600 $44,574,400 $45,081,300 $45,447,200 $45,906,000 $46,346,000 $46,792,900 $47,246,400 Transfers % of Revenue 25.9% 24.9% 24.7% 24.5% 24.3% 24.1% 24.0% 23.7% 23.5% 23.3% Services % of Revenue 12.6% 12.5% 12.7% 12.9% 13.2% 13.3% 13.5% 13.6% 13.7% 13.9% 23

Property Taxes CITY OF DOVER PROPERTY ASSESSMENT PROJECTION 2015 BASE YEAR TAXABLE ASSESSED VALUE AS OF MARCH 31, 2015 $3,103,526,891 Filed Tax Exemption Requests (scheduled for Annual Appeals) (1,372,500) Supplemental Billing (April) (ALREADY INCLUDED IN TAXABLE VALUE) Estimate Only Sheraton Hotel to DSU (Possible Exemption) (14,832,700) Annual Appeals (increased because of reval appeals) Estimate Only (15,000,000) Senior Citizen/Disability Exemption (approx 425 approved; revenue loss $74,316) Estimate Only (22,000,000) TOTAL ASSESSED VALUE $3,050,321,691 CITY OF DOVER PROJECTED PROPERTY TAX RECEIPTS 7/01/15 - 6/30/16 Valuation Proposed Adjusted Rate Rate $0.3499 $0.4200 Per $100 of assessment, the estimated gross 7/01/15 billing will be $10,673,100 $12,811,400 Penalties 70,000 70,000 Estimated Quarterly Billing 22,000 22,000 PROJECTED PROPERTY TAX RECEIPT SUBTOTAL $10,765,100 $12,903,400 BID 1 - Using a rate of $0.06244 per $100 of assessment, the estimated gross 7/01/14 billing will be $24,000 $24,000 BID 2 - Using a rate of $0.03353 per $100 of assessment, the estimated gross 7/01/14 billing will be 20,500 20,500 BID 3 - Using a rate of $0.01324 per $100 of assessment, the estimated gross 7/01/14 billing will be 5,100 5,100 PROJECTED BID RECEIPT TOTAL $49,600 $49,600 Pay In Lieu of Taxes Luther Towers $27,227; State of Delaware $309,858; $398,700 $398,700 Delaware State Housing Authority $4,049.52; Dover Housing Authority $50,000 Walker Woods $7,500; Farmland Roll Back Taxes PROJECTED PROPERTY TAX RECEIPTS FOR FY 2015 $11,213,400 $13,351,700 $0.01 of tax rate equates to: $305,032.17 24

City of Dover, Delaware Computation of Legal Debt Margin General Obligation Bonds (amounts expressed in thousands) Estimated Estimated 2016 2015 2014 2013 2012 2011 2010 2009 Debt Limit $ 152,516 $ 157,962 $ 157,995 $ 157,186 $ 156,429 $ 155,838 $ 144,341 $ 143,997 Net (Taxable) Assessed Value on Books 3,050,322 3,159,245 3,159,894 3,143,717 3,128,585 3,116,765 2,886,826 2,879,943 Total net debt applicable to limit 8,587 7,335 4,050 4,479 2,127 1,550 1,820 2,080 Legal Debt Margin $ 143,929 $ 150,627 $ 153,945 $ 152,707 $ 154,302 $ 154,288 $ 142,521 $ 142,885 Total Net Debt applicable to limit as a percentage of debt limit 5.63% 4.64% 2.56% 2.85% 1.36% 1.00% 1.26% 1.44% Legal Debt Margin Calculation for Fiscal Year 2015 Net (Taxable) Assessed Value on Books $ 3,050,322 $ 3,159,245 $ 3,159,894 $ 3,143,717 $ 3,128,585 Debt Limit - 5 Percent of Total Assessed Value $ 152,516 $ 157,962 $ 157,995 $ 157,186 $ 156,429 DEBT (For which the City's full faith and credit has been pledged) Gross Bonded Debt 8,587 7,335 4,050 4,479 2,127 LEGAL DEBT MARGIN $ 143,929 $ 150,627 $ 153,945 $ 152,707 $ 154,302 IMPORTANT NOTE: The Total Net Debt applicable to the debt limit includes the remaining Series 2014 A & B Bonds (PNC) and the 2012 Bonds (PNC). Source: City of Dover Financial Reports, City of Dover Charter, Section 50(b), and Tax Assessor's Office July 2009 the Charter was amended and the debt limit was reduced from 25% of the total assessed value to 5%. New Bonds without referendum cannot exceed 1/4 of 1% of taxable assessed value and shall not cause the total aggregate principal outstanding at any one time to exceed 1% of total taxable assessment for a general tax at the time of issue. 25

Water/Wastewater Fund • Revenue increase over original FY15 Budget – $1,227,300 or 8.5% and expenses increased $1,598,900 or 11.7% • Major increases/(decreases) affecting revenues • Water Service fees – $1,583,600 (related to Calpine) • Wastewater Treatment fees – $123,900 • Water Impact Fees – ($222,700) • Wastewater Impact Fess – ($177,900) • Major increases/(decreases) affecting expenses • Transfer to General Fund – $350,000 • Kent County Treatment Fees – $475,000 • Capital Project Appropriations – $300,000 • Water Treatment Plant – $332,700 (related to Calpine) • Water Department – $189,900 • Internal Service allocations – $149,600 • Eliminate Construction Division – ($252,500) 26

Electric Fund • FY16 Projected customer kWh sales down by an estimated 8 million kwh versus the FY15 forecast for FY16 • Rate stabilization reserve transfer of $3 million is planned to cover significant fluctuations in the power supply bills as experienced the past two years • Average 3% rate increase is proposed to cover the lower sales and all non-power supply increases over the five year forecast • A Power Cost Adjustment (PCA) is being forecasted for FY17 based on projected power supply cost. (See Forecast Model for further details) 27

Electric Fund • Revenue increase over original FY15 Budget – $1,229,500 or 1.5% and expenses decreased by ($1,683,600) or 2.0% • Major contributing factors to revenues • Transfer from Rate Stabilization Reserve – $1,000,000 over FY15 original budget • Customer sales - $236,200 (effects of rate increase offset by reduction in kwh) • Major contributing factors to expenses • Power Supply – • Net ($1,293,200) under FY15 Budget • Net $1,254,500 over last year’s forecast presentation for FY16 • Lower power supply cost than anticipated has been mitigated by lower kwh sales • Plant Operations – $293,500 • Division expenses $307,200 • Utility Bank & Credit Card Fees transferred from Customer Service $242,300 • Internal service allocations – $265,200 • Legal & Consulting fees for power supply contracts and RFP’s moved to Electric Administration $100,000 in FY16 ($246,800 in FY15) • Inventory write off expense - ($175,000), reserve level currently sufficient 28

Proposed Rates Burns & McDonnell Cost of Service Analysis Avg. Monthly Avg. Billable Customer Charge Energy Charge Demand Charge Energy Demand Current Proposed Current Proposed Current Proposed Customer Class - $/kWh - - $/kWh - - $/Month - - $/Month - - $/kWh - - $/kWh - - $/kW-mo. - - $/kW-mo. - Transmission Dover Air Force Base 4,519,600 8,523 $ - $ - $ 0.06090 $ 0.06370 $ 10.50 $ 10.50 First State Power Mgmt. (NRG) 262,158 2,004 $ 3,680.00 $ 3,680.00 $ 0.06090 $ 0.06370 $ 10.50 $ 10.50 Kraft 3,477,350 6,410 $ - $ - $ 0.06090 $ 0.06370 $ 10.50 $ 10.50 White Oak Solar 18,208 463 $ - $ - $ 0.06090 $ 0.06370 $ 10.50 $ 10.50 Procter & Gamble 1,151,067 2,050 $ - $ - $ 0.06090 $ 0.06370 $ 10.50 $ 10.50 Small Commercial Small Commercial-1 Phase 825 - $ 5.00 $ 7.50 $ 0.10010 $ 0.10040 $ - $ - Small Commercial-3 Phase 1,252 - $ 15.00 $ 22.50 $ 0.10010 $ 0.10040 $ - $ - Medium Commercial Medium Commercial-1 Phase 4,708 18 $ 5.00 $ 7.50 $ 0.06470 $ 0.06770 $ 13.95 $ 13.95 Medium Commercial-3 Phase 6,891 23 $ 15.00 $ 22.50 $ 0.06470 $ 0.06770 $ 13.95 $ 13.95 Large Commercial 30,125 89 $ 15.00 $ 22.50 $ 0.06470 $ 0.06770 $ 13.90 $ 13.90 Primary 385,015 976 $ 10.00 $ 15.00 $ 0.06450 $ 0.06760 $ 11.25 $ 11.25 Residential 853 - $ 5.00 $ 7.50 $ 0.12040 $ 0.12030 $ - $ - Utility Tax Rate - Small Customers [2] 4.25% 4.25% Utility Tax Rate - Industrial Customers [2] 2.00% 2.00% PPA (FY 2015 Current, FY2016 Proposed) $ - $ - FY 2015 Delaware Green Energy Fund Charge $ 0.000178 $ 0.000178 . [1] Large Commercial, Primary and Transmission customer classes have power factor requirement/adjustment. [2] Delaware utility tax rates accessed March 20, 2015. http://www.revenue.delaware.gov/services/current_bt/utilities.shtml http://www.revenue.delaware.gov/services/current_bt/taxtips/utility.pdf 29

Sample Electric Bills Effective July 1, 2015 Revised Electric Tariffs will be presented for approval with Budget Ordinances 30

Dover Air Force Base Proposed Proposed Units Current Billing Billing Adjustment Adjustment Adjustment Dover Air Force Base -$- -$- -$- -%- Customer Charge - $/mo. - $ - $ - $ - 0.00% Energy Charge - $/kWh - $ 0.06090 $ 0.06370 $ 0.00280 4.60% Demand Charge - $/kW-mo. - $ 10.50 $ 10.50 $ - 0.00% Purchased Power Adjustment - $/kWh - $ - $ - $ - 0.00% Green Energy Fund Charge - $/kWh - $ 0.00018 $ 0.00018 $ - 0.00% Utility Tax Rate -%- 0.00% 0.00% Average Monthly Energy - kWh - 4,519,600 4,519,600 Average Monthly Billing Demand - kW - 8,523 8,523 Average Monthly Load Factor -%- 73.65% 73.65% Customer Charge -$- $ - $ - $ - 0.00% Energy Charges -$- $ 275,243.64 $ 287,898.52 $ 12,654.88 4.60% Demand Charges -$- $ 89,491.50 $ 89,491.50 $ - 0.00% Subtotal - Base Rates $ 364,735.14 $ 377,390.02 $ 12,654.88 3.47% 3.32% Purchased Power Adjustment -$- $ - $ - $ - 0.00% Green Energy Fund Charges -$- $ 804.49 $ 804.49 $ - 0.00% Utility Tax -$- $ - $ - $ - 0.00% Total Bill $ 365,539.63 $ 378,194.51 $ 12,654.88 3.46% 31

Kraft Proposed Proposed Units Current Billing Billing Adjustment Adjustment Adjustment Kraft -$- -$- -$- -%- Customer Charge - $/mo. - $ - $ - $ - 0.00% Energy Charge - $/kWh - $ 0.06090 $ 0.06370 $ 0.00280 4.60% Demand Charge - $/kW-mo. - $ 10.50 $ 10.50 $ - 0.00% Purchased Power Adjustment - $/kWh - $ - $ - $ - 0.00% Green Energy Fund Charge - $/kWh - $ 0.00018 $ 0.00018 $ - 0.00% Utility Tax Rate -%- 2.00% 2.00% Average Monthly Energy - kWh - 3,477,350 3,477,350 Average Monthly Billing Demand - kW - 6,410 6,410 Average Monthly Load Factor -%- 75.35% 75.35% Customer Charge -$- $ - $ - $ - 0.00% Energy Charges -$- $ 211,770.62 $ 221,507.20 $ 9,736.58 4.60% Demand Charges -$- $ 67,305.00 $ 67,305.00 $ - 0.00% Subtotal - Base Rates $ 279,075.62 $ 288,812.20 $ 9,736.58 3.49% 3.32% Purchased Power Adjustment -$- $ - $ - $ - 0.00% Green Energy Fund Charges -$- $ 618.97 $ 618.97 $ - 0.00% Utility Tax -$- $ 5,593.89 $ 5,788.62 $ 194.73 3.48% Total Bill $ 285,288.47 $ 295,219.79 $ 9,931.31 3.48% 32

Proctor & Gamble Proposed Proposed Units Current Billing Billing Adjustment Adjustment Adjustment Procter & Gamble -$- -$- -$- -%- Customer Charge - $/mo. - $ - $ - $ - 0.00% Energy Charge - $/kWh - $ 0.06090 $ 0.06370 $ 0.00280 4.60% Demand Charge - $/kW-mo. - $ 10.50 $ 10.50 $ - 0.00% Purchased Power Adjustment - $/kWh - $ - $ - $ - 0.00% Green Energy Fund Charge - $/kWh - $ 0.00018 $ 0.00018 $ - 0.00% Utility Tax Rate -%- 2.00% 2.00% Average Monthly Energy - kWh - 1,151,067 1,151,067 Average Monthly Billing Demand - kW - 2,050 2,050 Average Monthly Load Factor -%- 77.99% 77.99% Customer Charge -$- $ - $ - $ - 0.00% Energy Charges -$- $ 70,099.98 $ 73,322.97 $ 3,222.99 4.60% Demand Charges -$- $ 21,525.00 $ 21,525.00 $ - 0.00% Subtotal - Base Rates $ 91,624.98 $ 94,847.97 $ 3,222.99 3.52% 3.32% Purchased Power Adjustment -$- $ - $ - $ - 0.00% Green Energy Fund Charges -$- $ 204.89 $ 204.89 $ - 0.00% Utility Tax -$- $ 1,836.60 $ 1,901.06 $ 64.46 3.51% Total Bill $ 93,666.47 $ 96,953.91 $ 3,287.45 3.51% 33

Small Commercial – 1 Phase Proposed Proposed Units Current Billing Billing Adjustment Adjustment Adjustment Small Commercial-1 Phase -$- -$- -$- -%- Customer Charge - $/mo. - $ 5.00 $ 7.50 $ 2.50 50.00% Energy Charge - $/kWh - $ 0.10010 $ 0.10040 $ 0.00030 0.30% Purchased Power Adjustment - $/kWh - $ - $ - $ - 0.00% Green Energy Fund Charge - $/kWh - $ 0.00018 $ 0.00018 $ - 0.00% Utility Tax Rate -%- 4.25% 4.25% Average Monthly Energy - kWh - 825 825 Customer Charge -$- $ 5.00 $ 7.50 $ 2.50 50.00% Energy Charges -$- $ 82.58 $ 82.83 $ 0.25 0.30% Subtotal - Base Rates $ 87.58 $ 90.33 $ 2.75 3.14% 3.11% Purchased Power Adjustment -$- $ - $ - $ - 0.00% Green Energy Fund Charges -$- $ 0.15 $ 0.15 $ - 0.00% Utility Tax -$- $ 3.73 $ 3.85 $ 0.12 3.13% Total Bill $ 91.46 $ 94.32 $ 2.86 3.13% 34

Small Commercial – 3 Phase Proposed Proposed Units Current Billing Billing Adjustment Adjustment Adjustment Small Commercial-3 Phase -$- -$- -$- -%- Customer Charge - $/mo. - $ 15.00 $ 22.50 $ 7.50 50.00% Energy Charge - $/kWh - $ 0.10010 $ 0.10040 $ 0.00030 0.30% Purchased Power Adjustment - $/kWh - $ - $ - $ - 0.00% Green Energy Fund Charge - $/kWh - $ 0.00018 $ 0.00018 $ - 0.00% Utility Tax Rate -%- 4.25% 4.25% Average Monthly Energy - kWh - 1,252 1,252 Customer Charge -$- $ 15.00 $ 22.50 $ 7.50 50.00% Energy Charges -$- $ 125.33 $ 125.70 $ 0.38 0.30% Subtotal - Base Rates $ 140.33 $ 148.20 $ 7.88 5.61% 3.11% Purchased Power Adjustment -$- $ - $ - $ - 0.00% Green Energy Fund Charges -$- $ 0.22 $ 0.22 $ - 0.00% Utility Tax -$- $ 5.97 $ 6.31 $ 0.33 5.60% Total Bill $ 146.52 $ 154.73 $ 8.21 5.60% 35

Medium Commercial – 1 Phase Proposed Proposed Units Current Billing Billing Adjustment Adjustment Adjustment Medium Commercial-1 Phase -$- -$- -$- -%- Customer Charge - $/mo. - $ 5.00 $ 7.50 $ 2.50 50.00% Energy Charge - $/kWh - $ 0.06470 $ 0.06770 $ 0.00300 4.64% Demand Charge - $/kW-mo. - $ 13.95 $ 13.95 $ - 0.00% Purchased Power Adjustment - $/kWh - $ - $ - $ - 0.00% Green Energy Fund Charge - $/kWh - $ 0.00018 $ 0.00018 $ - 0.00% Utility Tax Rate -%- 4.25% 4.25% Average Monthly Energy - kWh - 4,708 4,708 Average Monthly Billing Demand - kW - 18 18 Average Monthly Load Factor -%- 36.33% 36.33% Customer Charge -$- $ 5.00 $ 7.50 $ 2.50 50.00% Energy Charges -$- $ 304.61 $ 318.73 $ 14.12 4.64% Demand Charges -$- $ 251.10 $ 251.10 $ - 0.00% Subtotal - Base Rates $ 560.71 $ 577.33 $ 16.62 2.96% 2.12% Purchased Power Adjustment -$- $ - $ - $ - 0.00% Green Energy Fund Charges -$- $ 0.84 $ 0.84 $ - 0.00% Utility Tax -$- $ 23.87 $ 24.57 $ 0.71 2.96% Total Bill $ 585.41 $ 602.74 $ 17.33 2.96% 36

Medium Commercial – 3 Phase Proposed Proposed Units Current Billing Billing Adjustment Adjustment Adjustment Medium Commercial-3 Phase -$- -$- -$- -%- Customer Charge - $/mo. - $ 15.00 $ 22.50 $ 7.50 50.00% Energy Charge - $/kWh - $ 0.06470 $ 0.06770 $ 0.00300 4.64% Demand Charge - $/kW-mo. - $ 13.95 $ 13.95 $ - 0.00% Purchased Power Adjustment - $/kWh - $ - $ - $ - 0.00% Green Energy Fund Charge - $/kWh - $ 0.00018 $ 0.00018 $ - 0.00% Utility Tax Rate -%- 4.25% 4.25% Average Monthly Energy - kWh - 6,891 6,891 Average Monthly Billing Demand - kW - 23 23 Average Monthly Load Factor -%- 41.61% 41.61% Customer Charge -$- $ 15.00 $ 22.50 $ 7.50 50.00% Energy Charges -$- $ 445.85 $ 466.52 $ 20.67 4.64% Demand Charges -$- $ 320.85 $ 320.85 $ - 0.00% Subtotal - Base Rates $ 781.70 $ 809.87 $ 28.17 3.60% 2.12% Purchased Power Adjustment -$- $ - $ - $ - 0.00% Green Energy Fund Charges -$- $ 1.23 $ 1.23 $ - 0.00% Utility Tax -$- $ 33.27 $ 34.47 $ 1.20 3.60% Total Bill $ 816.20 $ 845.57 $ 29.37 3.60% 37

Large Commercial Proposed Proposed Units Current Billing Billing Adjustment Adjustment Adjustment Large Commercial -$- -$- -$- -%- Customer Charge - $/mo. - $ 15.00 $ 22.50 $ 7.50 50.00% Energy Charge - $/kWh - $ 0.06470 $ 0.06770 $ 0.00300 4.64% Demand Charge - $/kW-mo. - $ 13.90 $ 13.90 $ - 0.00% Purchased Power Adjustment - $/kWh - $ - $ - $ - 0.00% Green Energy Fund Charge - $/kWh - $ 0.00018 $ 0.00018 $ - 0.00% Utility Tax Rate -%- 4.25% 4.25% Average Monthly Energy - kWh - 30,125 30,125 Average Monthly Billing Demand - kW - 89 89 Average Monthly Load Factor -%- 47.01% 47.01% Customer Charge -$- $ 15.00 $ 22.50 $ 7.50 50.00% Energy Charges -$- $ 1,949.09 $ 2,039.46 $ 90.38 4.64% Demand Charges -$- $ 1,237.10 $ 1,237.10 $ - 0.00% Subtotal - Base Rates $ 3,201.19 $ 3,299.06 $ 97.87 3.06% 3.18% Purchased Power Adjustment -$- $ - $ - $ - 0.00% Green Energy Fund Charges -$- $ 5.36 $ 5.36 $ - 0.00% Utility Tax -$- $ 136.28 $ 140.44 $ 4.16 3.05% Total Bill $ 3,342.83 $ 3,444.86 $ 102.03 3.05% 38

Primary Proposed Proposed Units Current Billing Billing Adjustment Adjustment Adjustment Primary -$- -$- -$- -%- Customer Charge - $/mo. - $ 10.00 $ 15.00 $ 5.00 50.00% Energy Charge - $/kWh - $ 0.06450 $ 0.06760 $ 0.00310 4.81% Demand Charge - $/kW-mo. - $ 11.25 $ 11.25 $ - 0.00% Purchased Power Adjustment - $/kWh - $ - $ - $ - 0.00% Green Energy Fund Charge - $/kWh - $ 0.00018 $ 0.00018 $ - 0.00% Utility Tax Rate -%- 2.00% 2.00% Average Monthly Energy - kWh - 385,015 385,015 Average Monthly Billing Demand - kW - 976 976 Average Monthly Load Factor -%- 54.79% 54.79% Customer Charge -$- $ 10.00 $ 15.00 $ 5.00 50.00% Energy Charges -$- $ 24,833.47 $ 26,027.01 $ 1,193.55 4.81% Demand Charges -$- $ 10,980.00 $ 10,980.00 $ - 0.00% Subtotal - Base Rates $ 35,823.47 $ 37,022.01 $ 1,198.55 3.35% 4.41% Purchased Power Adjustment -$- $ - $ - $ - 0.00% Green Energy Fund Charges -$- $ 68.53 $ 68.53 $ - 0.00% Utility Tax -$- $ 717.84 $ 741.81 $ 23.97 3.34% Total Bill $ 36,609.84 $ 37,832.36 $ 1,222.52 3.34% 39

Residential Proposed Proposed Units Current Billing Billing Adjustment Adjustment Adjustment Residential -$- -$- -$- -%- Customer Charge - $/mo. - $ 5.00 $ 7.50 $ 2.50 50.00% Energy Charge - $/kWh - $ 0.12040 $ 0.12030 $ (0.00010) -0.08% Purchased Power Adjustment - $/kWh - $ - $ - $ - 0.00% Green Energy Fund Charge - $/kWh - $ 0.00018 $ 0.00018 $ - 0.00% Utility Tax Rate -%- 0.00% 0.00% Average Monthly Energy - kWh - 853 853 Customer Charge -$- $ 5.00 $ 7.50 $ 2.50 50.00% Energy Charges -$- $ 102.70 $ 102.62 $ (0.09) -0.08% Subtotal - Base Rates $ 107.70 $ 110.12 $ 2.41 2.24% 2.10% Purchased Power Adjustment -$- $ - $ - $ - 0.00% Green Energy Fund Charges -$- $ 0.15 $ 0.15 $ - 0.00% Utility Tax -$- $ - $ - $ - 0.00% Total Bill $ 107.85 $ 110.27 $ 2.41 2.24% 40

City of Dover Rate & Fee Trends Actual Actual Actual Actual Actual Actual Actual Actual Budget Proposed GENERAL FUND 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2014/16 Rolled Back/(Up) Property Tax Rate @ 100% value $0.3108 ($0.3499) Property Tax Rate Approved/Proposed $0.3300 $0.3300 $0.3300 $0.3300 $0.3378 $0.3378 $0.3378 $0.3378 $0.3378 $0.4200 Property Tax Rate Increase Proposed for revenue requirement $0.0270 $0.0701 Property Tax Rate Increase/(Decrease) (without 100% rollback/up) $0.0121 Trash Fees (in City) - implemented FY2000 $5.85 $5.85 $5.85 $5.85 $11.70 $11.70 $17.00 $17.00 $17.00 $17.00 Trash Fees (outside City) $18.72 $23.00 $29.00 $29.00 $42.75 $42.75 $42.75 $42.75 $42.75 $42.75 Transfer from Electric Utility 5.1% * 7.2% 6.6% 6.5% 8.0% 8.0% $8 million $8 million $10 million $10 million % of Electric Fund Revenues 8.3% 9.6% 12.5% 12.4% % of General Fund Revenues 22.3% 22.5% 25.7% 23.9% Transfer from Water/Wastewater Utility 4.5% 4.6% 5.0% 4.5% 0.0% 4.5% $500,000 $500,000 $500,000 $850,000 % of Water/Wastewater Fund Revenues 3.7% 3.6% 3.4% 5.4% % of General Fund Revenues 1.4% 1.4% 1.3% 2.0% WATER/WASTEWATER FUND Water per 1,000 gal $2.45 $2.45 $2.45 $2.70 $3.00 $3.00 $3.00 $3.00 $3.00 $3.00 Water per 1,000 gal (Outside City) $3.68 $3.68 $3.68 $4.05 $4.50 $4.50 $4.50 $4.50 $4.50 $4.50 Water Flat Rate Charge (new source) $1.25 $1.25 $1.25 $1.25 $1.25 $1.25 $1.25 $1.25 $2.50 $2.50 Wastewater per 1,000 gal. Charge $2.10 $2.10 $2.10 $2.10 $2.65 $2.65 $2.65 $2.65 $2.65 $2.65 Wastewater per 1,000 gal (Outside City) $3.15 $3.15 $3.15 $3.15 $3.98 $3.98 $3.98 $3.98 $3.98 $3.98 Wastewater Flat Rate Charge (new source) $1.25 $1.25 $1.25 $1.25 $1.25 $1.25 $1.25 $1.25 $2.50 $2.50 Kent County Sewer Treatment Fee - Rate set by County $2.13 $2.34 $2.34 $2.34 $2.34 $2.34 $2.34 $2.34 $2.34 $2.34 Kent County Sewer Adjustment (new source - City) $1.05 $1.05 $1.05 $1.05 $1.50 $1.50 ELECTRIC FUND Full Year at Residential Rate Changes (includes any PCA adj.) $0.1218 $0.1343 $0.1450 $0.1450 $0.1407 $0.1364 $0.1316 $0.1204 $0.1204 $0.1203 Increase % 28.9% 10.3% 8.0% 0.0% -3.0% -3.1% -3.5% -8.5% 0.0% -0.1% Cumulative % Change 35.3% 45.6% 53.5% 53.5% 50.6% 47.5% 44.0% 35.5% 35.5% 35.4% Electric Fund Customer Charge $5.00 $5.00 $5.00 $5.00 $5.00 $5.00 $5.00 $5.00 $5.00 $7.50 Reconnect Fees $50 - $100 $50 - $100 $50 - $100 $50 - $100 $50 - $100 $50 - $100 $50 - $100 $50 - $100 $50 - $100 $50 - $100 Return Check Fees $25 $25 $25 $25 $25 $25 $25 $25 $25 $25 41

FUND SUM MARIES & RESERVE ACCOUNTS  ALL FUNDS SUMMARY  GENERAL FUND  WATER/WASTEWATER FUND  ELECTRIC FUND  CHARTER ARTICLE IV SEC44 & FINANCIAL POLICIES

FY 2016 DRAFT ANNUAL OPERATING BUDGET - DOVER, DELAWARE City of Dover All Funds Summary Fiscal 2016 Proposed Budget Fund or Beginning Revenues/ Expenses/ Ending Reserve Account Balances Transfers In Transfers Out Balances General Fund Operating Fund $ 3,977,500 $ 41,830,100 $ (41,825,200) $ 3,982,400 Contingency Account 794,400 1,100 - 795,500 Capital Project Fund 154,800 2,905,500 (2,905,500) 154,800 Capital Asset Reserve 914,000 6,000 - 920,000 Parkland Reserve 320,100 1,000 - 321,100 Total General Fund 6,160,800 44,743,700 (44,730,700) 6,173,800 Water/Wastewater Fund Operating Fund 1,155,000 15,727,700 (15,268,200) 1,614,500 Contingency Account 294,600 34,200 - 328,800 I & E Fund 1,889,400 3,490,000 (3,850,700) 1,528,700 Capital Asset Reserve 1,025,900 7,800 - 1,033,700 Impact Fee Reserve 1,663,900 11,600 (165,000) 1,510,500 Total Water Fund 6,028,800 19,271,300 (19,283,900) 6,016,200 Electric Fund Operating Fund 6,177,600 83,536,000 (80,616,800) 9,096,800 Contingency Account 825,300 19,300 - 844,600 Insurance Reserve 743,100 15,600 - 758,700 Rate Stabilization Reserve 7,545,300 57,300 (3,000,000) 4,602,600 I & E Fund 3,623,600 5,426,700 (6,266,900) 2,783,400 Depreciation Reserve 9,990,500 125,900 - 10,116,400 Future Capacity Reserve 10,140,900 77,100 (50,000) 10,168,000 Total Electric Fund 39,046,300 89,257,900 (89,933,700) 38,370,500 Less: Interfund Operating Transfers (10,850,000) 10,850,000 Capital and Reserve Transfers (12,857,200) 12,857,200 Interfund Allocations 5,277,800 (5,277,800) Subtotal Major Operating Funds 51,235,900 134,843,500 (135,518,900) 50,560,500 Workers Compensation 1,052,600 653,100 (642,200) 1,063,500 Community Transportation Fund 144,000 500,500 (644,000) 500 Police Grants 125,000 527,300 (618,300) 34,000 Library Grants 17,300 281,400 (281,400) 17,300 CDBG - 265,400 (265,400) - Total All Funds & Reserves $ 52,574,800 $ 137,071,200 $ (137,970,200) $ 51,675,800 Notes: Special Revenue Funds with receipts that pass over to the General Fund are not individually included. These are Municipal Street Aid, Civil Traffic Penalties, and Transfer Taxes. 43

FY 2016 DRAFT ANNUAL OPERATING BUDGET - DOVER, DELAWARE GENERAL FUND CASH RECEIPT SUMMARY $ DIFFERENCE % CHG 2013/14 2014/15 2014/15 2015/16 FY 16 PP VS FY16 VS ACTUAL BUDGET REVISED PROPOSED FY15 BUDGET FY15 RECEIPTS 1 BEGINNING BALANCE 4,219,831 3,393,000 4,361,500 3,977,500 584,500 17.2% 2 FINES AND POLICE REVENUE 653,624 629,300 629,300 702,300 73,000 11.6% 3 INVESTMENT INCOME 28,950 40,000 40,000 35,000 (5,000) -12.5% 4 LIBRARY REVENUES 68,190 71,600 71,600 72,000 400 0.6% 5 KENT COUNTY BOOK REIMBURSEMENT 430,363 450,000 490,000 450,000 - 0.0% 6 BUSINESS LICENSES 1,494,315 1,460,000 1,460,000 1,425,000 (35,000) -2.4% 7 PERMITS AND OTHER FEES 1,597,262 1,354,200 1,354,200 1,436,300 82,100 6.1% 8 MISCELLANEOUS CHARGES 57,041 53,900 27,600 22,700 (31,200) -57.9% 9 POLICE EXTRA DUTY 562,854 659,500 659,500 533,000 (126,500) -19.2% 10 PROPERTY TAXES 11,044,429 11,049,200 11,086,800 13,302,100 2,252,900 20.4% 11 BID REVENUE 50,050 50,000 49,500 49,700 (300) -0.6% 12 RECREATION REVENUE 151,925 148,800 148,800 149,000 200 0.1% 13 FRANCHISE FEE 648,345 636,000 656,400 672,300 36,300 5.7% 14 SANITATION FEES 2,595,648 2,595,600 2,580,000 2,580,000 (15,600) -0.6% 15 RENT REVENUE - GARRISON FARM 92,956 101,400 92,300 93,700 (7,700) -7.6% 16 COURT OF CHANCERY FEES 1,034,460 1,023,000 1,074,400 1,065,100 42,100 4.1% 17 RECEIPTS SUBTOTAL 20,510,412 20,322,500 20,420,400 22,588,200 2,265,700 11.1% 18 INTERFUND SERVICE RECEIPTS 19 INTRAFUND SERVICE RECEIPTS W/WW 1,218,851 1,354,900 1,371,100 1,504,500 149,600 11.0% 20 INTRAFUND SERVICE RECEIPTS ELECTRIC 3,427,308 3,508,100 3,588,200 3,773,300 265,200 7.6% 21 INTERFUND SERVICE RECEIPTS SUBTOTAL 4,646,159 4,863,000 4,959,300 5,277,800 414,800 8.5% 22 GRANTS: 23 POLICE RELATED/EXTRA DUTY 80,212 124,000 124,000 74,400 (49,600) -40.0% 24 POLICE PENSION GRANT 471,461 500,000 500,000 500,000 - 0.0% 25 GREEN ENERGY GRANT 98,500 98,500 98,500 98,500 - 0.0% 26 MISC GRANT REVENUE 1,000 25,000 25,000 25,000 - 0.0% 27 VERIZON RESERVE - - - 50,000 50,000 0.0% 28 GRANTS SUBTOTAL 651,173 747,500 747,500 747,900 400 0.1% 29 TRANSFERS FROM: 30 TRANSFER TAX 1,544,084 1,250,000 1,525,200 1,340,000 90,000 7.2% 31 MUNICIPAL STREET AID 664,866 663,900 664,200 564,200 (99,700) -15.0% 32 CIVIL TRAFFIC PENALTIES 357,531 500,000 450,000 450,000 (50,000) 70.0% 33 WATER/WASTEWATER 500,000 500,000 500,000 850,000 350,000 0.0% 34 ELECTRIC 8,000,000 10,000,000 10,000,000 10,000,000 - 0.0% 35 OTHER RESERVES 4,968 4,000 4,000 12,000 8,000 200.0% 36 CONTINGENCY FUND 271,000 - 50,000 - - 0.0% 37 BOND PROCEEDS - SERIES 2014 - - 475,000 - - 0.0% 38 TRANSFERS FROM SUBTOTAL 11,342,449 12,917,900 13,668,400 13,216,200 298,300 2.3% 39 TOTAL REVENUES 37,150,193 38,850,900 39,795,600 41,830,100 2,979,200 7.7% 40 TOTAL BEGINNING BALANCE & REVENUE 41,370,024 42,243,900 44,157,100 45,807,600 3,563,700 8.4% 44

FY 2016 DRAFT ANNUAL OPERATING BUDGET - DOVER, DELAWARE GENERAL FUND EXPENSE SUMMARY $ DIFFERENCE % CHG 2013/14 2014/15 2014/15 2015/16 FY 16 PP VS FY16 VS ACTUAL BUDGET REVISED PROPOSED FY15 BUDGET FY15 1 DEPARTMENT EXPENSES: 2 CITY CLERK 367,809 383,200 386,700 385,200 2,000 0.5% 3 COUNCIL 99,829 106,600 106,600 132,800 26,200 24.6% 4 TAX ASSESSOR 209,395 309,500 319,100 234,900 (74,600) -24.1% 5 FIRE 673,464 716,100 716,100 784,700 68,600 9.6% 6 GROUNDS MAINTENANCE 1,031,134 1,123,800 1,130,900 1,211,500 87,700 7.8% 7 LIBRARY 1,324,178 1,393,100 1,422,000 1,514,200 121,100 8.7% 8 RECREATION 677,534 706,400 710,800 730,200 23,800 3.4% 9 LIFE SAFETY 519,875 504,800 534,600 482,700 (22,100) -4.4% 10 CODE ENFORCEMENT 412,830 418,400 420,500 420,300 1,900 0.5% 11 PLANNING 422,085 444,100 449,400 546,300 102,200 23.0% 12 INSPECTIONS 660,580 602,100 614,400 664,700 62,600 10.4% 13 ECONOMIC DEVELOPMENT 213,889 223,000 223,000 238,500 15,500 7.0% 14 POLICE 14,247,926 13,986,100 14,338,900 15,337,600 1,351,500 9.7% 15 POLICE EXTRA DUTY 659,757 712,500 712,500 603,800 (108,700) -15.3% 16 STREETS 641,167 665,100 676,200 676,700 11,600 1.7% 17 SANITATION 2,156,228 2,248,000 2,224,800 2,159,900 (88,100) -3.9% 18 CITY MANAGER 533,336 592,500 595,900 753,100 160,600 27.1% 19 INFORMATION TECHNOLOGY 716,217 728,700 736,600 707,100 (21,600) -3.0% 20 FINANCE 910,724 947,100 970,000 993,000 45,900 4.8% 21 PUBLIC WORKS - ADMINISTRATION 432,425 514,800 518,100 632,600 117,800 22.9% 22 FACILITIES MANAGEMENT 634,315 677,800 690,400 709,000 31,200 4.6% 23 PUBLIC WORKS - ENGINEERING - 192,600 193,700 182,100 (10,500) -5.5% 24 PROCUREMENT & INVENTORY 521,148 535,600 542,800 570,500 34,900 6.5% 25 FLEET MAINTENANCE 780,084 776,700 799,700 770,100 (6,600) -0.8% 26 CUSTOMER SERVICE 1,201,976 1,040,300 1,044,600 1,122,900 82,600 7.9% 27 HUMAN RESOURCES 363,064 379,700 385,500 383,100 3,400 0.9% 28 MAYOR 75,380 74,900 82,500 76,300 1,400 1.9% 29 DEPARTMENT SUBTOTALS 30,486,349 31,003,500 31,546,300 33,023,800 2,020,300 6.5% 30 OTHER EXPENDITURES: 31 DEBT SERVICE 552,051 708,600 948,400 660,800 (47,800) -6.7% 32 CONTRIBUTION TO DDP 162,400 70,000 70,000 70,000 - 0.0% 33 MISCELLANEOUS GRANT RELATED EXP - 25,000 25,000 25,000 - 0.0% 34 INSURANCE 655,998 724,800 675,000 690,000 (34,800) -4.8% 35 RETIREES HEALTH CARE 1,636,500 1,636,500 1,636,500 1,895,600 259,100 15.8% 36 OTHER EMPLOYMENT EXPENSES - 500,000 74,900 587,100 87,100 17.4% 37 BANK & CREDIT CARD FEES - - - 15,000 15,000 0.0% 38 UNCOLLECTIBLES - TRASH AND OTHER 10,000 50,000 50,000 50,000 - 0.0% 39 STREET LIGHTS 774,533 774,500 774,500 797,700 23,200 3.0% 40 OTHER EXPENSE SUBTOTAL 3,791,482 4,489,400 4,254,300 4,791,200 301,800 6.7% 41 TRANSFERS 42 TRANSFER TO CAPITAL ASSET RESERVE - - 60,000 - - 0.0% 43 TRANSFER TO CAPITAL FUND - PROJECTS 1,448,800 2,196,000 2,196,000 2,880,200 684,200 31.2% 44 APPROP. TO THE POLICE PENSION FUND 689,400 655,000 755,000 570,000 (85,000) -13.0% 45 APPROP. POLICE PENSION - STATE GRANT 471,461 500,000 500,000 500,000 - 0.0% 46 APPROP. TO THE GENERAL PENSION FUND 121,000 - 543,000 - - 0.0% 47 TRANSFER TO CONTINGENCY RESERVE - - 300,000 - - 0.0% 48 TRANSFER TO PARKLAND RESERVE - - 25,000 - - 0.0% 49 TRANSFER TO VERIZON RESERVE - - - 50,000 50,000 0.0% 50 TRANSFER TO INVENTORY WRITE-OFFS - - - 10,000 10,000 0.0% 51 TRANSFERS SUBTOTAL 2,730,661 3,351,000 4,379,000 4,010,200 659,200 19.7% 52 TOTAL EXPENDITURES 37,008,492 38,843,900 40,179,600 41,825,200 2,981,300 7.7% 53 BUDGET BALANCE 4,361,532 3,400,000 3,977,500 3,982,400 582,400 17.1% 54 TOTAL BUDGET BALANCE & EXPENDITURES 41,370,024 42,243,900 44,157,100 45,807,600 3,563,700 8.4% 55 EXCEEDS/(REMAINS)TO MEET REQUIREMENT 1,389,500 291,900 793,900 636,000 $ DIFFERENCE 2013/14 2014/15 2014/15 2015/16 FY 16 PP VS 56 RESERVE BALANCES REVISED BUDGET REVISED PROPOSED FY15 BUDGET POLICY 57 CONTINGENCY 467,269 467,900 794,400 795,500 1,100 2% OF REV 45

FY 2016 DRAFT ANNUAL OPERATING BUDGET - DOVER, DELAWARE Fiscal Year 2015/2016 General Fund Revenue COURT OF GRANTS CHANCERY FEES 3.1% 2.5% POLICE FINES & LICENSES & FEES FRANCHISE FEES PERMITS 4.0% 1.6% 6.8% LIBRARY & TRANSFER TAXES RECREATION FEES 3.2% 1.6% OTHER MISCELLANEOUS SANITATION FEES RECEIPTS 6.2% 0.4% INTERFUND SERVICE FEES 12.6% PROPERTY TAXES 31.9% UTILITY TRANSFERS 25.9% 46

FY 2016 DRAFT ANNUAL OPERATING BUDGET - DOVER, DELAWARE Fiscal Year 2015/2016 General Fund Expenditures By Major Function TRANSFER TO CAPITAL PROJECTS 6.9% CITY ADMINISTRATION OTHER 4.7% DEBT SERVICE INSURANCE 1.9% LIBRARY & 1.6% 1.6% RECREATION STREET LIGHTS 5.4% 1.9% PLANNING & RETIREE PENSION INSPECTIONS CONTRIBUTIONS 5.1% 2.6% RETIREE MEDICAL CONTRIBUTIONS 4.5% PUBLIC WORKS 15.2% FINANCIAL POLICE & FIRE ADMINISTRATION 40.0% 8.7% Several General Fund Departments service all City operations. The General Fund bills the utility funds services provided. The receipts are reported as revenue in the General Fund and not netted against the expenditures. 47

FY 2016 DRAFT ANNUAL OPERATING BUDGET - DOVER, DELAWARE Fiscal Year 2015/2016 General Fund Expenditures By Expenditure Category RETIREE PENSION DEBT SERVICE STREET LIGHTS CONTRIBUTIONS 1.9% 1.6% 2.6% INSURANCE 1.6% RETIREE MEDICAL CONTRIBUTIONS 4.5% OTHER 0.5% ADMINISTRATIVE CAPITAL EXPENSES 6.9% 11.8% MATERIALS & SUPPLIES 3.3% PERSONNEL SERVICES 65.2% 48

FY 2016 DRAFT ANNUAL OPERATING BUDGET - DOVER, DELAWARE PROJECTED COST PER CAPITA BY FUNCTION Fiscal Year 2015-2016 OTHER $21.50 TRANSFER TO CAPITAL PROJECTS $76.72 INSURANCE $18.38 DEBT SERVICE $17.60 STREET LIGHTS $21.25 RETIREE PENSION CONTRIBUTIONS $28.50 RETIREE MEDICAL CONTRIBUTIONS $50.50 PUBLIC WORKS $168.94 FINANCIAL ADMINISTRATION $96.65 POLICE & FIRE $445.55 PLANNING & INSPECTIONS $56.31 LIBRARY & RECREATION $59.79 $52.45 CITY ADMINISTRATION $0.00 $100.00 $200.00 $300.00 $400.00 $500.00 Total per capita based on population estimate of 37,540 = $1,114.15 49

FY 2016 DRAFT ANNUAL OPERATING BUDGET - DOVER, DELAWARE GOVERNMENTAL CAPITAL PROJECTS FUND SUMMARY $ DIFFERENCE % CHG 2013/14 2014/15 2014/15 2015/16 FY 16 PP VS FY16 VS ACTUAL BUDGET REVISED PROPOSED FY15 BUDGET FY15 1 BEGINNING BALANCE - PROJECTS 3,058,253 117,100 2,654,600 154,800 37,700 32.2% 2 REVENUES 3 STATE GRANTS - Other - 153,000 208,000 - (153,000) -100.0% 4 PROPOSED BOND/BANK PROCEEDS - Street - 2,661,100 2,675,000 - (2,661,100) -100.0% 5 LEASE PURCHASE OF FIRE AND POLICE EQUIPT - 918,300 918,300 - (918,300) -100.0% 6 INCOME FROM SALE OF ASSETS 27,815 - - 20,300 20,300 0.0% 7 MISCELLANEOUS RECEIPTS 279,282 - - - - 0.0% 8 INTEREST EARNINGS 14,245 - - 5,000 5,000 0.0% 9 TRANSFER FROM GENERAL FUND 1,448,800 2,196,000 2,196,000 2,880,200 684,200 31.2% 10 TRANSFER FROM COM TRANSP FUND 60,500 - - - - 0.0% 11 TRANSFER FROM MUNICIPAL STREET AID - CAPITAL 251,252 - - - - 0.0% 12 TRANSFER FROM PARKLAND RESERVE - - 104,000 - - 0.0% 13 SUBTOTAL CAPITAL PROJECT FUNDING SOURCES 2,081,894 5,928,400 6,101,300 2,905,500 (3,022,900) -51.0% 14 STATE GRANTS - Library 143,856 - - - - 0.0% 15 LIBRARY CAPITAL PLEDGES 8,250 - - - - 0.0% 16 SUBTOTAL LIBRARY PROJECT FUNDING SOURCES 152,106 - - - - 0.0% 17 TOTAL FUNDING SOURCES 2,234,000 5,928,400 6,101,300 2,905,500 (3,022,900) -51.0% 18 TOTAL BEGINNING BALANCE & FUNDING SOURCES 5,292,253 6,045,500 8,755,900 3,060,300 (2,985,200) -49.4% 19 EXPENDITURES 20 FIRE 238,515 827,300 827,300 238,500 (588,800) -71.2% 21 GROUNDS MAINTENANCE 30,249 68,100 86,700 201,100 133,000 195.3% 22 LIBRARY 110,438 - - - - 0.0% 23 RECREATION 5,829 146,000 284,400 - (146,000) -100.0% 24 LIFE SAFETY - - - 55,700 55,700 0.0% 25 CODE ENFORCEMENT 30,840 - - - - 0.0% 26 POLICE 342,125 499,100 601,700 360,900 (138,200) -27.7% 27 STREETS 1,449,193 1,370,300 470,300 1,483,500 113,200 8.3% 28 STREETS - GARRISON FARM INFRASTRUCTURE - 2,586,100 5,447,600 - (2,586,100) -100.0% 29 SANITATION 387,504 256,500 256,500 449,000 192,500 75.0% 30 CITY MANAGER - - - 32,800 32,800 0.0% 31 FACILITIES MANAGEMENT 17,795 - - - - 0.0% 32 PROCUREMENT & INVENTORY - - 55,000 - - 0.0% 33 FLEET MAINTENANCE - - - 84,000 84,000 0.0% 34 DEPARTMENT SUBTOTAL 2,612,488 5,753,400 8,029,500 2,905,500 (2,847,900) -49.5% 35 TRANSFERS & MISCELLANEOUS EXPENSES 36 BOND/LOAN ISSUANCE COST - 75,000 61,100 - (75,000) -100.0% 37 TRANSFER TO PARKLAND RESERVE 14,517 100,000 180,000 - (100,000) -100.0% 38 TRANSFER TO CAPITAL ASSET RESERVE 10,623 - 330,500 - - 0.0% 40 TRANSFERS & MISCELLANEOUS SUBTOTAL 25,140 175,000 571,600 - (175,000) -100.0% 41 TOTAL EXPENDITURES 2,637,628 5,928,400 8,601,100 2,905,500 (3,022,900) -51.0% BUDGET BALANCE - LIBRARY PROJECT 330,496 - - - - 0.0% 42 BUDGET BALANCE 2,324,129 117,100 154,800 154,800 37,700 32.2% 43 TOTAL BUDGET BALANCE & EXPENDITURES 5,292,253 6,045,500 8,755,900 3,060,300 (2,985,200) -49.4% $ DIFFERENCE 2013/14 2014/15 2014/15 2015/16 FY 16 PP VS RESERVE BALANCES ACTUAL BUDGET REVISED PROPOSED FY15 BUDGET POLICY 44 CAPITAL ASSET RESERVE 520,986 512,300 914,000 920,000 6,000 Min $500K 45 PARKLAND/RECREATION 218,654 304,800 320,100 321,100 1,000 N/A 50

FY 2016 DRAFT ANNUAL OPERATING BUDGET - DOVER, DELAWARE WATER/WASTEWATER FUND SUMMARY $ DIFFERENCE % CHG 2013/14 2014/15 2014/15 2015/16 FY 16 PP VS FY16 VS ACTUAL BUDGET REVISED PROPOSED FY15 BUDGET FY15 1 BEGINNING BALANCE - WATER 732,740 658,400 783,500 861,600 203,200 30.9% 2 BEGINNING BALANCE - WASTEWATER 441,414 (98,500) 19,900 293,400 391,900 -397.9% 3 BEGINNING BALANCE - KCSA (17,267) 155,000 - - (155,000) -100.0% 4 TOTAL BEGINNING BALANCES 1,156,887 714,900 803,400 1,155,000 440,100 61.6% 5 BASE REVENUE: 6 WATER SERVICES 4,459,808 4,616,400 4,616,400 6,200,000 1,583,600 34.3% 7 WASTEWATER SERVICES 3,562,400 3,706,800 3,706,800 3,728,000 21,200 0.6% 8 WASTEWATER TREATMENT SERVICES 2,930,333 2,902,600 2,902,600 3,026,500 123,900 4.3% 9 GROUNDWATER INFLOW ADJUSTMENT 1,316,209 1,862,500 1,862,500 1,864,300 1,800 0.1% 10 WATER TANK SPACE LEASING 360,307 331,900 331,900 341,900 10,000 3.0% 11 BOND PROCEEDS - 2003 BOND REFUNDING 1,962,937 - - - - 0.0% 12 SEWER IMPACT FEES 230,222 427,900 416,700 250,000 (177,900) -41.6% 13 WATER IMPACT FEES 252,215 472,700 462,400 250,000 (222,700) -47.1% 14 INTEREST - WATER - 9,000 9,000 1,000 (8,000) -88.9% 15 INTEREST - WASTEWATER - 14,000 14,000 2,000 (12,000) -85.7% 16 MISCELLANEOUS SERVICE FEE 65,502 156,600 64,000 64,000 (92,600) -59.1% 17 TOTAL REVENUES 15,139,933 14,500,400 14,386,300 15,727,700 1,227,300 8.5% 18 TOTAL BEGINNING BALANCE & REVENUES 16,296,820 15,215,300 15,189,700 16,882,700 1,667,400 11.0% 19 DIRECT EXPENSES: 20 ENGINEERING & INSPECTION 458,973 500,900 502,400 518,700 17,800 3.6% 21 WATER CONSTRUCTION 338,054 252,500 253,300 - (252,500) -100.0% 22 WATER DEPARTMENT 509,897 485,300 488,600 675,200 189,900 39.1% 23 WATER TREATMENT PLANT 1,489,465 1,576,900 1,582,200 1,909,600 332,700 21.1% 24 WASTEWATER DEPARTMENT 913,389 974,100 975,400 971,300 (2,800) -0.3% 25 DIRECT EXPENDITURE SUBTOTAL 3,709,778 3,789,700 3,801,900 4,074,800 285,100 7.5% 26 OTHER EXPENSES: 27 DEBT SERVICE - WATER 1,628,679 534,100 560,100 545,200 11,100 2.1% 28 DEBT SERVICE - WASTEWATER 1,412,417 617,900 591,900 586,900 (31,000) -5.0% 29 RETIREES HEALTH CARE 200,000 200,000 200,000 178,600 (21,400) -10.7% 30 OTHER EMPLOYMENT EXPENSES - 17,700 5,500 20,000 2,300 13.0% 31 KENT COUNTY TREATMENT CHARGE 4,129,646 3,655,000 4,004,200 4,130,000 475,000 13.0% 32 INTRAFUND SERVICE FEES 1,349,638 1,354,900 1,371,100 1,504,500 149,600 11.0% 33 BANK & CREDIT CARD FEES - - - 46,200 46,200 0.0% 34 OTHER EXPENSES SUBTOTAL 8,720,380 6,379,600 6,732,800 7,011,400 631,800 9.9% 35 TRANSFER TO: 36 GENERAL FUND FROM WATER 250,000 250,000 250,000 550,000 300,000 120.0% 37 GENERAL FUND FROM WASTEWATER 250,000 250,000 250,000 300,000 50,000 20.0% 38 WATER IMP AND EXT 1,233,200 1,200,000 1,200,000 1,800,000 600,000 50.0% 39 WASTEWATER IMP AND EXT 1,330,000 1,800,000 1,800,000 1,500,000 (300,000) -16.7% 40 CONTINGENCY RESERVE WATER - - - 32,000 32,000 0.0% 41 TRANSFER TO SUBTOTAL 3,063,200 3,500,000 3,500,000 4,182,000 682,000 19.5% 42 TOTAL EXPENSES 15,493,358 13,669,300 14,034,700 15,268,200 1,598,900 11.7% 43 BUDGET BALANCES 44 BUDGET BALANCE WATER — 783,541 1,020,100 861,600 1,040,600 20,500 2.0% 45 BUDGET BALANCE WASTEWATER (79,708) (739,200) 293,400 573,900 1,313,100 -177.6% 46 BUDGET BALANCE KCSA 99,629 1,265,100 - - (1,265,100) -100.0% 47 BUDGET BALANCE SUBTOTALS 803,462 1,546,000 1,155,000 1,614,500 68,500 4.4% 48 TOTAL BUDGET BALANCES & EXPENSES 16,296,820 15,215,300 15,189,700 16,882,700 1,667,400 11.0% 49 EXCEEDS/(REMAINS)TO MEET REQMNT (250,738) 385,900 4,100 356,300 $ DIFFERENCE 2013/14 2014/15 2014/15 2015/16 FY 16 PP VS 50 RESERVE BALANCES ACTUAL BUDGET REVISED PROPOSED FY15 BUDGET POLICY 51 CONTINGENCY - WATER 104,736 107,700 104,900 137,700 32,800 2% of Rev 52 CONTINGENCY - WATER/WASTEWATER 189,391 194,800 189,700 191,100 1,400 2% of Rev 51

FY 2016 DRAFT ANNUAL OPERATING BUDGET - DOVER, DELAWARE Fiscal Year 2015/2016 Water/Wastewater Fund Revenue WATER TANK SPACE GROUNDWATER LEASING IMPACT FEES INFLOW 2.2% ADJUSTMENT 3.2% 11.9% MISCELLANEOUS SERVICE FEE 0.4% WASTEWATER TREATMENT SERVICES WATER SERVICES 19.2% 39.4% WASTEWATER SERVICES 23.7% 52

FY 2016 DRAFT ANNUAL OPERATING BUDGET - DOVER, DELAWARE 2015/2016 Budget Water/Wastewater Fund Expenses By Major Function INTRAFUND SERVICE FEES TRANSFER TO 10.2% GENERAL FUND 5.6% TRANSFER TO CAPITAL PROJECTS 21.6% TRF TO CONTINGENCY WATER 0.2% KENT COUNTY ENGINEERING & TREATMENT FEES INSPECTION 27.0% 3.4% WATER CONSTRUCTION 0.0% DEBT SERVICE WATER 7.4% DEPARTMENT WATER TREATMENT RETIREE MEDICAL PLANT 4.4% CONTRIBUTIONS 12.6% 1.2% WASTEWATER DEPARTMENT 6.4% 53

FY 2016 DRAFT ANNUAL OPERATING BUDGET - DOVER, DELAWARE 2015/2016 Budget Water/Wastewater Fund Expenses By Expense Category INTRAFUND SERVICE FEES 9.9% TRANSFER TO GENERAL FUND 5.6% TRANSFER TO CAPITAL PROJECTS 21.8% KENT COUNTY TREATMENT FEES 27.0% PERSONNEL SERVICES 17.5% MATERIALS & RETIREE MEDICAL DEBT SERVICE SUPPLIES CONTRIBUTIONS 7.4% 2.2% 1.2% ADMINISTRATIVE EXPENSES 7.4% 54

FY 2016 DRAFT ANNUAL OPERATING BUDGET - DOVER, DELAWARE WATER/WASTEWATER IMPROVEMENT & EXTENSION FUND SUMMARY $ DIFFERENCE % CHG 2013/14 2014/15 2014/15 2015/16 FY 16 PP VS FY16 VS ACTUAL BUDGET REVISED PROPOSED FY15 BUDGET FY15 1 BEGINNING BALANCE - WATER 4,328,000 1,021,200 7,178,100 833,500 (187,700) -18.4% 2 BEGINNING BALANCE - WASTEWATER 2,952,835 1,060,000 5,677,600 1,055,900 (4,100) -0.4% 3 TOTAL BEGINNING BALANCES 7,280,835 2,081,200 12,855,700 1,889,400 (5,199,635) -9.2% 4 REVENUES 5 BOND PROCEEDS - WATER 3,103,651 - - - - 0.0% 6 BOND PROCEEDS - WASTEWATER 1,037,582 - - - - 0.0% 7 STATE LOAN FUND - WATER 62,000 - - - - 0.0% 8 TRANS FR OPERATING FUND - WATER 1,233,200 1,200,000 1,200,000 1,800,000 600,000 50.0% 9 TRANS FR OPERATING FUND - WASTEWATER 1,330,000 1,800,000 1,800,000 1,500,000 (300,000) -16.7% 10 TRANSFER FR WASTEWATER IMPACT FEE 1,000,000 1,315,600 1,315,600 165,000 (1,150,600) -87.5% 11 PROCEEDS FROM SALE OF ASSETS 4,343 - - - - 0.0% 12 INTEREST INCOME 26,561 25,000 40,000 25,000 - 0.0% 13 MISCELLANEOUS RECEIPTS 88,314 - - - - 0.0% 14 TOTAL REVENUES 7,885,651 4,340,600 4,355,600 3,490,000 (850,600) -19.6% 15 TOTAL BEGINNING BALANCES & REVENUES 15,166,486 6,421,800 17,211,300 5,379,400 (1,042,400) -16.2% 16 EXPENSES 17 WATER 1,368,759 1,336,900 7,526,500 2,028,600 691,700 51.7% 18 WASTEWATER 735,039 3,277,200 7,785,600 1,822,100 (1,455,100) -44.4% 19 WATER TREATMENT PLANT - 38,100 38,100 - (38,100) -100.0% 20 WATER CONSTRUCTION 89,500 - - - - 0.0% 21 BOND ISSUANCE COST 117,517 - - - - 0.0% 22 TOTAL EXPENSES 2,310,815 4,652,200 15,350,200 3,850,700 (801,500) -17.2% 23 BUDGET BALANCE - WATER 7,178,064 858,700 833,500 617,400 (241,300) -28.1% 24 BUDGET BALANCE - WASTEWATER 5,677,607 910,900 1,027,600 911,300 400 0.0% 25 TOTAL ENDING BUDGET BALANCES 12,855,671 1,769,600 1,861,100 1,528,700 (240,900) -13.6% 26 TOTAL BUDGET BALANCES & EXPENSES 15,166,486 6,421,800 17,211,300 5,379,400 (1,042,400) -16.2% $ DIFFERENCE 2013/14 2014/15 2014/15 2015/16 FY 16 PP VS 27 RESERVE BALANCES ACTUAL BUDGET REVISED PROPOSED FY15 BUDGET POLICY 28 CAPITAL ASSET RESERVE-WATER 508,485 522,700 514,600 518,500 (4,200) MIN $500K 29 CAPITAL ASSET RESERVE-WASTEWATER 507,322 521,600 511,300 515,200 (6,400) MIN $500K 30 IMPACT FEE RESERVE - WATER 200,174 203,900 200,500 201,000 (2,900) 20% of Rev. 31 IMPACT FEE RESERVE - WASTEWATER 2,776,414 1,552,300 1,463,400 1,309,500 (242,800) 20% of Rev. 55

FY 2016 DRAFT ANNUAL OPERATING BUDGET - DOVER, DELAWARE ELECTRIC REVENUE FUND SUMMARY $ DIFFERENCE % CHG 2013/14 2014/15 2014/15 2015/16 FY 16 PP VS FY16 VS ACTUAL BUDGET REVISED PROPOSED FY15 BUDGET FY15 1 BEGINNING BALANCE 6,620,900 9,253,600 6,602,900 6,177,600 (3,076,000) -33.2% 2 BASE REVENUE: 3 DIRECT SALES TO CUSTOMER 76,928,295 78,043,000 76,543,700 78,279,200 236,200 0.3% 4 UTILITY TAX 1,258,957 1,296,900 1,258,300 1,281,100 (15,800) -1.2% 5 MISCELLANEOUS REVENUE 619,442 624,600 624,000 597,200 (27,400) -4.4% 6 RENT REVENUE 159,109 200,000 200,000 202,600 2,600 1.3% 7 GREEN ENERGY 127,926 130,000 128,000 128,000 (2,000) -1.5% 8 INTEREST EARNINGS 213,178 12,000 12,000 47,900 35,900 299.2% 9 TRANSFER FROM RATE STABILIZATION 7,000,000 2,000,000 3,000,000 3,000,000 1,000,000 50.0% 10 INTRAFUND SERVICE RECEIPTS W/WW 130,787 - - - - 0.0% 11 TOTAL REVENUES 86,437,694 82,306,500 81,766,000 83,536,000 1,229,500 1.5% 12 TOTAL BEGINNING BALANCE & REVENUES 93,058,594 91,560,100 88,368,900 89,713,600 (1,846,500) -2.0% 13 EXPENSES: 14 POWER SUPPLY 29,484,681 21,823,000 26,035,900 23,402,600 1,579,600 7.2% 15 SOLAR ENERGY 1,821,037 2,067,600 2,002,700 2,313,900 246,300 11.9% 16 SOLAR RENEWAL ENERGY CREDITS 337,741 378,600 375,500 363,400 (15,200) -4.0% 17 POWER SUPPLY MANAGEMENT 996,000 996,000 996,000 996,000 - 0.0% 18 REC'S (Renewable Energy Credits) - - 555,400 673,400 673,400 0.0% 19 RGGI (Regional Greenhouse Gas Init.) - - - 175,000 175,000 0.0% 20 PJM CHARGES - ENERGY 14,855,117 11,499,800 10,076,200 7,966,100 (3,533,700) -30.7% 21 PJM CHARGES - TRANSMISSION & FEES 7,433,120 7,234,100 4,480,800 7,932,500 698,400 9.7% 22 CAPACITY CHARGES 15,504,095 9,958,900 9,744,100 10,225,100 266,200 2.7% 23 SUB-TOTAL POWER SUPPLY 70,431,791 53,958,000 54,266,600 54,048,000 90,000 0.2% 24 PLANT OPERATIONS 5,729,922 6,141,100 6,141,100 6,434,600 293,500 4.8% 25 GENERATIONS FUELS 2,715,284 1,611,100 1,873,400 1,167,300 (443,800) -27.5% 26 PJM SPOT MARKET ENERGY (862,233) (2,232,800) (2,834,600) (1,708,300) 524,500 -23.5% 27 PJM CREDITS (5,946,189) (486,700) (663,700) (360,000) 126,700 -26.0% 28 CAPACITY CREDITS (15,065,472) (8,881,500) (8,742,100) (10,472,100) (1,590,600) 17.9% 29 GENERATION SUBTOTAL (13,428,688) (3,848,800) (4,225,900) (4,938,500) (1,089,700) 28.3% 30 POWER SUPPLY & GENERATION SUBTOTAL 57,003,103 50,109,200 50,040,700 49,109,500 (999,700) -2.0% 31 DIRECT EXPENDITURES 32 TRANSMISSION/DISTRIBUTION 3,789,955 4,028,700 3,954,900 4,075,700 47,000 1.2% 33 ELECTRICAL ENGINEERING 1,312,063 1,370,900 1,379,300 1,337,100 (33,800) -2.5% 34 ADMINISTRATION 548,055 636,600 632,400 841,700 205,100 32.2% 35 METER READING 284,229 267,600 357,200 361,200 93,600 35.0% 36 SYSTEMS OPERATIONS 739,407 686,300 696,500 681,600 (4,700) -0.7% 37 DIRECT EXPENDITURE SUBTOTALS 6,673,709 6,990,100 7,020,300 7,297,300 307,200 4.4% 38 OTHER EXPENSES: 39 UTILITY TAX 1,258,957 1,296,900 1,258,300 1,281,100 (15,800) -1.2% 40 ALLOW FOR UNCOLLECTIBLES 200,000 200,000 200,000 200,000 - 0.0% 41 CONTRACTUAL SERVICES - RFP'S 28,074 246,800 246,800 - (246,800) -100.0% 42 RETIREES HEALTH CARE 513,300 513,300 513,300 537,800 24,500 4.8% 43 OTHER EMPLOYMENT EXPENSES - 54,200 24,000 72,000 17,800 32.8% 44 OPEB UNFUNDED LIABILITY 975,700 1,009,800 1,009,800 1,030,000 20,200 2.0% 45 GREEN ENERGY PAYMENT TO DEMEC 127,926 130,000 128,000 128,000 (2,000) -1.5% 46 INTRAFUND SERVICE FEES 3,427,309 3,508,100 3,588,200 3,773,300 265,200 7.6% 47 INTEREST ON DEPOSITS 20,278 20,000 20,000 20,500 500 2.5% 48 BANK & CREDIT CARD FEES - - - 242,300 242,300 0.0% 49 INVENTORY WRITE OFFS - 175,000 - - (175,000) -100.0% 50 DEBT SERVICE 3,308,739 3,297,000 3,391,900 3,402,000 105,000 3.2% 51 OTHER EXPENSES SUBTOTAL 9,860,283 10,451,100 10,380,300 10,687,000 235,900 2.3% 52 TRANSFER TO: 53 IMPROVEMENT & EXTENSION 4,918,600 4,750,000 4,750,000 3,500,000 (1,250,000) -26.3% 54 GENERAL FUND 8,000,000 10,000,000 10,000,000 10,000,000 - 0.0% 55 TRANSFER INSURANCE RESERVE - - - 10,000 10,000 0.0% 56 TRANSFER CONTINGENCY RESERVE - - - 13,000 13,000 0.0% 57 TRANSFER TO SUBTOTAL 12,918,600 14,750,000 14,750,000 13,523,000 (1,227,000) -8.3% 58 TOTAL EXPENSES 86,455,695 82,300,400 82,191,300 80,616,800 (1,683,600) -2.0% 59 BUDGET BALANCE - WORKING CAPITAL 6,602,899 9,259,700 6,177,600 9,096,800 (162,900) -1.8% 60 TOTAL BUDGET BALANCE & EXPENSES 93,058,594 91,560,100 88,368,900 89,713,600 (1,846,500) -2.0% 61 EXCEEDS/(REMAINS)TO MEET REQUIREMENT 348,599 2,938,900 (23,000) 2,756,400 $ DIFFERENCE 2013/14 2014/15 2014/15 2015/16 FY 16 PP VS 62 RESERVE BALANCES ACTUAL BUDGET REVISED PROPOSED FY15 BUDGET POLICY 63 CONTINGENCY RESERVE 819,140 826,000 825,300 844,600 25,460 1% of Rev 64 INSURANCE RESERVE 737,458 743,600 743,100 758,700 21,242 $750k 65 RATE STABILIZATION RESERVE 10,465,816 8,583,000 7,545,300 4,602,600 (5,863,216) 10% 56

FY 2016 DRAFT ANNUAL OPERATING BUDGET - DOVER, DELAWARE Electric Fund Fiscal Year 2015/2016 Revenue DIRECT SALES TO CUSTOMER 93.7% TRANSFER FROM UTILITY TAX RATE STABILIZATION 1.5% 3.6% MISCELLANEOUS REVENUE 1.2% 57

FY 2016 DRAFT ANNUAL OPERATING BUDGET - DOVER, DELAWARE Electric Fund Fiscal Year 2015/2016 Expense by Function ADMINISTRATION METER READING 1.0% 0.4% ENGINEERING SYSTEMS 1.7% OPERATIONS T&D 0.8% 5.1% TRANSFER TO GENERAL FUND 12.4% TRANSFER TO CAPITAL PROJECTS 4.3% INTERFUND SERVICE FEES 4.7% DEBT SERVICE 4.2% POWER SUPPLY & GENERATION RETIREE MEDICAL 61.0% CONTRIBUTIONS MISCELLANEOUS 1.9% EXPENSES 0.8% STATE UTILITY TAXES 1.6% 58

FY 2016 DRAFT ANNUAL OPERATING BUDGET - DOVER, DELAWARE Electric Fund Fiscal Year 2015/2016 Expense by Category POWER SUPPLY & GENERATION 60.9% TRANSFER TO GENERAL FUND ADMINISTRATIVE 12.4% EXPENSES 1.4% MATERIALS & TRANSFER TO SUPPLIES CAPITAL PROJECTS 0.8% DEBT SERVICE PERSONNEL 4.3% 4.2% SERVICES INTERFUND 6.9% SERVICE FEES RETIREE MEDICAL 4.7% CONTRIBUTIONS 1.9% MISCELLANEOUS STATE UTILITY EXPENSES TAXES 0.8% 1.6% 59

FY 2016 DRAFT ANNUAL OPERATING BUDGET - DOVER, DELAWARE ELECTRIC IMPROVEMENT & EXTENSION FUND SUMMARY $ DIFFERENCE % CHG 2013/14 2014/15 2014/15 2015/16 FY 16 PP VS FY16 VS ACTUAL BUDGET REVISED PROPOSED FY15 BUDGET FY15 REV 1 BEGINNING BALANCE 3,980,178 3,362,200 5,942,500 3,623,600 261,400 7.8% 2 REVENUES 3 TRANSFER FROM ELECTRIC 4,918,600 4,750,000 4,750,000 3,500,000 (1,250,000) -26.3% 4 GENERAL SERVICE BILLING 250,238 250,000 250,000 1,900,000 1,650,000 660.0% 5 INCOME FROM SALE OF ASSETS 14,439 - - - - 0.0% 6 INTEREST EARNINGS 6,506 24,800 24,800 26,700 1,900 7.7% 7 TOTAL REVENUES 5,189,783 5,024,800 5,024,800 5,426,700 401,900 8.0% 8 9 TOTALS 9,169,961 8,387,000 10,967,300 9,050,300 663,300 7.9% 10 EXPENSES 11 ELECTRIC GENERATION 1,547,017 2,240,000 2,739,300 1,655,000 (585,000) -26.1% 12 TRANSMISSION AND DISTRIBUTION 467,144 1,033,000 1,854,200 2,887,600 1,854,600 179.5% 13 ELECTRICAL ENGINEERING 1,213,271 1,663,100 2,750,200 1,724,300 61,200 3.7% 14 TOTAL EXPENSES 3,227,432 4,936,100 7,343,700 6,266,900 1,330,800 27.0% 15 BUDGET BALANCE 5,942,529 3,450,900 3,623,600 2,783,400 (667,500) -19.3% 16 TOTAL BUDGET BALANCE & EXPENSES 9,169,961 8,387,000 10,967,300 9,050,300 663,300 7.9% $ DIFFERENCE 2013/14 2014/15 2014/15 2015/16 FY 16 PP VS ACTUAL BUDGET REVISED PROPOSED FY15 BUDGET POLICY 17 RESERVE BALANCES $10Million 18 DEPRECIATION RESERVE 9,915,062 9,998,200 9,990,500 10,116,400 201,338 Min. $10Million 19 FUTURE CAPACITY RESERVE 10,064,442 10,148,700 10,140,900 10,168,000 103,558 Min. 60

CHARTER ART. IV, SECTION 44, & FINANCIAL POLICIES

FY 2016 ANNUAL OPERATING BUDGET – DOVER, DELAWARE Sec. 44. - Annual budget. On or before the second Monday of May of each year, the city manager shall prepare and submit to the council, a budget, presenting a financial plan for conducting the affairs of the city for the ensuing fiscal year. The total of proposed expenditures shall not exceed the total of anticipated income. The budget shall include the following information: 1. A detailed statement showing the expenses of conducting each department and office of the city for the current year and last preceding fiscal year. 2. A detailed estimate of the expenses of conducting each department and office of the city for the ensuing fiscal year with reasons for the increases and decreases recommended. 3. The amount of the debt of the city together with a schedule of maturities of bond issues. 4. A statement showing the amount required for interest on the city debt and for paying off any bonds maturing during the year and the amount required for the sinking fund. 5. An itemized statement of all anticipated income of the city with a comparative statement of the amounts received by the city from each of the same or similar sources for the last preceding and current fiscal years. 6. An estimate of the amount of money to be received from taxes. 7. Such other information as the city manager may think desirable or as may be required by the council. The council shall on or before the second Monday in the month of June in each year adopt a budget for the succeeding fiscal year. The council shall, so far as possible, adhere to the budget so adopted in the making of appropriations. (Amd. of 7-12-2005 (S.B. 126)) 62

CITY OF DOVER FINANCIAL POLICIES 09/8/14 63

CITY OF DOVER, DELAWARE FINANCIAL POLICIES The purpose of these policies is to present a standardized set of principles that the City follows in managing its financial and budgetary affairs. These are general statements of policies, which represent long-standing principles, traditions, and practices that will be used to guide the City in maintaining financial stability. It will be the responsibility of the Finance Department to ensure the financial objectives of these policies are maintained. Revenue Policy 1. The City will strive to maintain a broad and diversified revenue base that will equitably distribute the burden of supporting City services and will protect the City from short-term fluctuations in any one revenue source. 2. The City will actively support economic and industrial development recruitment and retention efforts to provide for a solid revenue base. 3. The City will maintain timely collection systems and implement necessary enforcement strategies to collect revenues from available sources. 4. The City will establish user fees and charges for services, when feasible, at levels related to the cost of providing the services. The City will review the fees and charges every three to five years to determine modifications needed to keep pace with the cost of providing the services. Property Tax Rates are set annually 5. The City will review its incentive programs every three years and provide City Council with the amount of foregone revenues and any recommended changes. 6. The City will establish, when feasible, self-supporting enterprise funds and intergovernmental service funds in which a relationship between revenues and expenditures clearly exists. 7. The City will project current revenues on a conservative basis so the actual revenues will consistently meet or exceed budgeted revenues. Revenues greater or less than the original budget will flow through to the audited Ending Budget Balance. 8. The City will maintain a budgetary control system and will prepare reports, which compare actual revenues to budgeted amounts. 9. The City will limit the designation of General Fund revenues for specified purposes to maximize flexibility in budgeting and revenue utilization. 10. The City will review annually and revise, where necessary, its cost allocation formulas, i.e. internal service departments. 64

11. Upon satisfying all rate covenants the City will provide operating transfers to the General Fund. From the Water/Wastewater Utility no greater than $1,000,000 and from the Electric Utility no greater than $10,000,000. Expenditure Policy 1. Basic and essential services provided by the City will receive first priority for funding, i.e. Public Safety & Health, Utilities, Streets, & Sanitation. The City will establish performance measurements for all program areas, when feasible. These measures will reflect the demand, workload capability, and projected outcomes for the program to accomplish its objectives. 2. A report of the expenses of the Public Safety categories that have been identified will be presented to City Council two (2) times; once upon delivery of the proposed budget in May and the other upon the adoption of the budget in July. The report will map the revenues that have been identified to support the expenses, how much of a gap there is, and what the trend is for closing the gap over a 20 year period. The revenues will be the direct revenues of those programs and the Property Tax Revenue, excluding BID taxes. 3. The City will adopt a balanced budget, by fund, for all funds maintained by the City, in which total anticipated revenues must equal or exceed the budgeted expenditures for each fund. The Beginning Budget Balance will not be considered a revenue source. 4. The City will maintain a budgetary control system to ensure adherence to the original adopted budget and will prepare reports, which compare actual expenditures to budgeted amounts. Expenditures greater or less than the original adopted budget will flow through the audited Ending Budget Balance. 5. The City will restrict the use of appropriations as follows: • Funds appropriated for personnel expenses shall be restricted to use as personnel expenses; Any personnel savings at the end of each fiscal year will be re-appropriated in the next fiscal year to be transferred to the City’s unfunded retirement liabilities; • Funds appropriated as capital expenses shall be restricted to use as capital expenses; • Funds appropriated as operating expenses shall be restricted to use as operating expenses; • All requests for additional personnel shall be accompanied with a five-year estimate on the costs of such position(s), including salaries and other employment costs (OEC’s); 6. The City will refrain from budgeting revenues derived from infrequent and unanticipated transactions for ongoing expenses. These revenues will be set aside for asset replacement or as otherwise directed by Mayor and Council. 7. The City will provide access to medical, dental, vision, life, AD & D, and short-term disability insurance for its employees. The cost for these benefits will be a shared responsibility between the City and its employees as outlined in the City Personnel Handbook or collective bargaining agreements 65

8. The City will provide access to medical and dental insurance for its retirees and their families. The cost for these benefits will be a shared responsibility between the City and its retirees as outlined in the City Personnel Handbook or collective bargaining agreements. 9. The City will provide access to appropriate retirement plans for its employees. The City will make contributions for eligible employees at the actuarial determined percentage defined for each of the respective retirement plans. 10. The City will establish an Other Post-Employment Benefit Fund (OPEB) and provide available funding for early implementation of a new accounting standard promulgated by the Government Accounting Standards Board. The City will make contributions for eligible employees and retirees at the actuarial determined rates or percentages to fund future retiree medical benefits. Debt Policy 1. The City will maintain a debt management policy and full disclosure on financial reports. 2. The City will maintain communications with bond rating agencies and continue to strive for improvements in the City’s bond rating. 3. The City will adhere to its debt covenants. 4. The City will review its debt capacity every three years. 5. The City will pay for all capital projects and capital improvements on a pay-as-you-go basis using current revenues whenever possible. If a project or improvement cannot be financed with current revenues, long-term debt or use of reserves will be recommended. 6. The City will refrain from issuing long-term debt for a period in excess of the expected useful life of the capital project. 7. The City will use special assessment revenue or other self-supporting bonds instead of general obligation bonds, when practical. 8. The City will seek refinancing of outstanding debt if it is determined that the City will benefit by reduced interest expense over the remaining life of the bonds. Budget Balance/Reserve Policy – General Fund 1. The City will strive to maintain a minimum Budget Balance, of at least 8% and no greater than 12% of the current year operating revenues for the General Fund, excluding the carry forward balance. The purpose of the budget balance is to meet temporary fluctuations in cash flows and to provide a cushion for loss of revenues until operating changes can be implemented. If the final Budget Balance exceeds the amount as approved in the budget ordinance, such funds shall be used to provide for unfunded retirement liabilities or as otherwise designated by City Council. The City may use monies in the Budget Balance only in times of fiscal and economic hardship. 66

2. Once achieved, at no time should the City’s budget balances fall below their specified percentages. If a shortfall occurs in the budget balance and immediately restoring the balances to the specified percentage would cause an extreme burden on the taxpayers, the budget balance may, with the Mayor’s and City Council’s approval, be restored to the specified percentage within one year, but in any case, no longer than three years. 3. The City will maintain a minimum reserve, in a contingency account, of at least 2% of the current year operating revenues for the General Fund. The City may only use monies in the contingency accounts to cover emergencies of a non-recurring nature that are over and above the normal course of operations. Examples are uninsured losses, storms or hurricane damages. The Contingency Reserve will not be used to balance the operating budget. 4. The total of the General Fund budget and contingency balances shall not exceed 17% (~ 2 months) of Budgeted Operating Revenues. 5. The City will create a Capital Asset Replacement account for Governmental Fund asset procurements. Optimally, the amount set aside for future asset replacements should equal the annual depreciation of the current assets. The City will appropriate excess (amounts greater than budgeted) revenues to fund this account, or if the balance is less than the $500,000 minimum, $200,000 per annum until such time the minimum balance is replenished. 6. The City will create a General Capital Project Fund to account for all General Government asset procurements and projects. The City will provide operating fund transfers and/or debt proceeds for each fiscal year’s Capital Investment Plan. All vehicle and equipment purchases under $25,000 will be budgeted on a pay as you go basis. Budget Balance/Reserve Policy – Water/Wastewater Fund 1. The City will strive to maintain a minimum Budget Balance, of at least 8% and no greater than 17% (two months) of the current year operating revenues for each of the Water & Wastewater Utility Funds, excluding the carry forward balance. The purpose of the budget balance is to meet temporary fluctuations in cash flows and to provide a cushion for loss of revenues until operating changes can be implemented. If the final Budget Balance exceeds the amount as approved in the budget ordinance, such funds shall be used to provide for unfunded retirement liabilities or as otherwise designated by City Council. The City may use monies in the Budget Balance only in times of fiscal and economic hardship. 2. Once achieved, at no time should the City’s budget balances fall below their specified percentages. If a shortfall occurs in the budget balance and immediately restoring the balances to the specified percentage would cause an extreme burden on the ratepayers, the budget balance may, with the Mayor’s and City Council’s approval, be restored to the specified percentage within one year, but in any case, no longer than three years. 3. The City will maintain a minimum reserve, in a contingency account, of at least 2% of the current year operating revenues for each the Water & Wastewater Fund. The City may only use monies in the contingency accounts to cover emergencies of a non-recurring nature that are over 67

and above the normal course of operations. Examples are uninsured losses, storms or hurricane damages. The Contingency Reserve will not be used to balance the operating budget. 4. The total of the combined Water & Wastewater Fund budget and contingency balances shall not exceed 25% (3 months) of Budgeted Operating Revenues. 5. The City will maintain a Capital Asset Replacement account to cover replacement or procurement of assets of the utility. Optimally, the amount set aside for future asset replacements should equal the annual depreciation of the current assets. The City will maintain a minimum balance of $500,000 for each utility for Capital Asset Replacements. The City will appropriate excess revenues to fund this account, or if the balance is less than the minimum $100,000 per annum for each utility until such time the minimum balance is achieved. 6. The City established by ordinance on December 17, 1996 the Wastewater Impact Fee Reserve to provide for future expansion of the City’s wastewater system due to increased demand. The ordinance further provides for debt service payments attributed to wastewater expansion projects to be funded by the current year’s collection of Impact Fees and the remainder to be deposited into the reserve account. The City shall maintain a minimum of 20% of wastewater revenues in the Impact Fee Reserve account. Amounts used to finance projects shall be replenished by the operating revenues of the Wastewater Fund over the succeeding seven years of any project completion. 7. The City established by ordinance on February 1, 2008 the Water Impact Fee Reserve to provide for future expansion of the City’s water system due to increased demand. The ordinance further provides for debt service payments attributed to water expansion projects to be funded by the current year’s collection of Impact Fees and the remainder to be deposited into the reserve account. The City shall maintain a minimum of 20% of water revenues in the Impact Fee Reserve account. Amounts used to finance projects shall be replenished by the operating revenues of the Water Fund over the succeeding seven years of any project completion. 8. The Water & Wastewater Improvement & Extension Fund budget balance shall be no less than $200,000 of the current fiscal year’s appropriation for water and wastewater projects to allow for project variances and change orders; a 10% contingency shall be included in project budgets greater than $250,000 if the Department Head determines it to be appropriate. All vehicle and equipment purchases under $25,000 will be budgeted on a pay as you go basis. The City Manager shall make the necessary budget amendments in accordance with the City of Dover Purchasing & Budget Amendment Policies. Budget Balance/Reserve Policy – Electric Revenue Fund 1. The City will strive to maintain a minimum Budget Balance, of at least 8% and no greater than 12% (45 days) of the current year operating revenues for the Electric Revenue Fund, excluding the carry forward balance and power cost adjustments. The purpose of the budget balance is to meet temporary fluctuations in cash flows and to provide a cushion for loss of revenues until operating changes can be implemented. If the final Budget Balance exceeds the amount as approved in the budget ordinance, such funds shall be used to provide for unfunded retirement 68

liabilities or as otherwise designated by City Council. The City may use monies in the Budget Balance only in times of fiscal and economic hardship. 2. Once achieved, at no time should the City’s budget balances fall below their specified percentages. If a shortfall occurs in the budget balance and immediately restoring the balances to the specified percentage would cause an extreme burden on the taxpayers, the budget balance may, with the Mayor’s and City Council’s approval, be restored to the specified percentage within one year, but in any case, no longer than three years. 3. The City will maintain a minimum reserve, in a contingency account, of at least 1% of the current year operating revenues for the Electric Revenue Fund. The City may only use monies in the contingency accounts to cover emergencies of a non-recurring nature that are over and above the normal course of operations. Examples are uninsured losses, storms or hurricane damages. The Contingency Reserve will not be used to balance the operating budget. 4. The total of the combined Electric Revenue Fund budget and contingency balances shall not exceed 25% (3 months) of Budgeted Operating Revenues. 5. The City has established by bond covenant an account to cover insurance deductibles on the electric transmission and distribution system or the generating plants. The City shall maintain a minimum balance of $350,000 to cover various deductibles. 6. Recognizing price fluctuations in the wholesale power markets the City has established a rate stabilization reserve. The purpose of using such a reserve is to level off the fluctuations in the wholesale power supply market and in turn provide stable rates to our customers. In those instances where the actual cost of power supply and generation are less/more than the budgeted cost of power supply and generation, the City will transfer the difference to/from the Rate Stabilization Reserve. The balance shall be maintained at a minimum of 3% not to exceed 10% of the purchase power cost in any given year. If the reserve balance exceeds the 10% maximum, a credit will be applied to the power cost adjustment. 7. The Electric Improvement & Extension Fund budget balance shall be no less than $200,000 of the current fiscal year’s appropriation for electric system projects to allow for project variances and change orders; a 10% contingency shall be included in project budgets greater than $250,000 if the Department Head determines it to be appropriate. All vehicle and equipment purchases under $25,000 will be budgeted on a pay as you go basis. The City Manager shall make the necessary budget amendments in accordance with the City of Dover Purchasing & Budget Amendment Policies. 8. The City has established an account to provide for capital financing of Future Capacity or system expansion. The City shall maintain a balance equivalent to the value of 10% growth in capacity at any given time, or no less than $10,000,000. Amounts used to finance projects shall be replenished by the operating revenues of the Electric Revenue Fund over the succeeding seven years of any project completion. 9. The City has established an account to provide for replacement or procurement of utility system assets, otherwise known as Depreciation Reserve. Optimally, the amount set aside for future asset replacements should equal the annual depreciation of the current assets. The City will 69

maintain a minimum balance of $10,000,000. The primary purpose of this account is to provide partial or all financing of major capital projects and minimize debt service payments. The account is also intended to cover unforeseen capital replacements due to equipment breakdowns, storms or hurricane damages. Amounts used to finance projects shall be replenished by the operating revenues of the Electric Revenue Fund over the succeeding seven years of any project completion 10. The total of the combined Electric Revenue and Electric Improvement & Extension Fund budget and reserve balances shall be benchmarked at 50% Budgeted Operating Revenues. Operating Fund Budget Balance and Reserves shall be adjusted to appropriate levels through adjustments in the operating budget. Improvement & Extension Fund Budget Balance and Reserves shall be adjusted in accordance with the Capital Improvement Plan. Investment and Cash Management Policy 1. The City will deposit all receipts on a timely basis in interest bearing accounts. 2. The City will strive to maximize the return on its investment portfolio without jeopardizing principal amounts. 3. The City will limit its investments to the types of securities provided for by Delaware statutes. 4. The City will diversify its investments by maturity date to protect against market fluctuations. 5. The City will purchase securities from qualified institutions based on competitive bids in an effort to obtain the highest available rates. 6. The City will maintain an Investment Policy based on prudent investment practices and will monitor all investment managers’ compliance with policy objectives. Capital Improvement Policy 1. The City will prepare and update, as needed a five-year Capital Improvements Program (CIP) which will provide for the orderly maintenance, replacement, and expansion of capital assets. 2. The CIP will identify long-range capital projects and capital improvements of all types, which will be coordinated with the annual operating budget to maintain full utilization of available revenue sources. 3. When preparing the CIP, the City will seek to identify all viable capital projects and capital improvements required during the subsequent five-year period. These projects and improvements will be prioritized by year and by funding source. 4. Every attempt will be made to match projects and improvements with available funding sources. Future operating costs and savings associated with a project or an improvement will also be given consideration in the establishment of priorities. 70

5. The City will seek Federal, State, and other funding to assist in financing capital projects and capital improvements. 6. The City will incorporate the reasonable findings and recommendations of other cities’ Boards, Commissions, Committees, and Citizen Task Forces, as they relate to capital projects and improvements. 7. The City will seek input from the public by holding public hearings in relation to the establishment of projects and project priorities. Financial Reporting Policy 1. The City’s accounting system will maintain records in accordance with accounting standards and principles outlined by the Governmental Accounting Standards Board (GASB), Financial Accounting Standards Board (FASB), and the State of Delaware. 2. The City will employ an independent accounting firm to perform an annual audit of the City’s finances and make the annual audit available to all required and interested parties. 3. The City will produce monthly and quarterly financial statements reporting the current periods’ activity for all funds maintained by the City. 4. The City will prepare an annual budget document that provides a basic understanding of the City’s planned financial operations for the coming fiscal year. Copies of the proposed and final budget will be made available to all interested parties and opportunities will be provided for citizen input prior to final decisions on the budget. 5. The City will place continued emphasis on review and maintenance of an accounting system which provides strong internal budgetary and accounting controls designed to provide reasonable assurance, but not absolute, assurance regarding: (a) the safeguarding of assets against loss from unauthorized use or disposition and, (b) the reliability of financial records for preparing financial statements and reports, and the maintaining accountability for assets. 6. The City will seek annual renewal of the Government Finance Officers Association’s (GFOA) Certificate of Achievement for Excellence in Financial Reporting and the Distinguished Budget Presentation Award. Adoption: Approval by City Council: January 28, 2002 Most recent amendments: 1. Amended by City Council: June 11, 2014 2. Amended by City Council on September 8, 2014 71

CITY OF DOVER DEPARTMENT OF FINANCE POLICY MANUAL TITLE: Budget Administration – Policy for Operating Departments DATE: September 8, 2014 Each Department Head is responsible for managing their overall budgets for account variances created by routine operating expenses. This policy is intended to permit the redistribution of funds in departmental budgets when unexpected events or transactions occur. It establishes the procedure to be followed when the approval of a supplemental appropriation is requested. It restricts the redistribution of personnel and capital outlay accounts. All redistributions are to be rounded to the nearest hundred dollars (no cents). 1. Definitions, as used in this policy: “Fund”: In governmental accounting, a fund is a fiscal and accounting entity with a self- balancing set of accounts, created and maintained for a particular purpose and having transactions subject to legal or administrative restrictions. A separate budget is provided for each fund. “Department”: Departments are the major organizational sub-divisions. They have a broad overall purpose. The City of Dover is organized into twelve (12) departments: City Clerk, City Manager, Customer Services, Electric, Information Services, Finance and Procurement & Inventory, Human Resources, Planning & Inspections and Parks & Recreation & Library, Police, Public Works, and Tax Assessor. “Division”: Is the major operational areas of the City. Each Division has been assigned to one of the Departments listed above according to the type of activity it performs. For example, the Electric Engineering Division is part of the Electric Department. “Category”: Within each division, each expenditure line item is grouped into a category of related expenditures. The budget for each line item is listed by categorical total. Examples of a category include personnel services, materials & supplies, administrative expenditures, capital outlay, project accounts, and depreciation. 2. Department Managers may redistribute monies “within” a group of accounts in a particular category, except salary/benefits, and capital outlay accounts to address unexpected events or transactions. Form COD #98 shall be used to request the transfer of funds. The monies shall not be encumbered until the Controller/Treasurer has returned a copy of Form COD #98 advising the manager that the redistribution has been entered into the budget software. 3. Transfers between categories material/supplies and administrative are permitted. 4. Transfers from salary and benefit accounts are permitted upon the approval of the City Council to cover unanticipated expenses created by vacancies. Budget savings from these line items will transferred to the pension and OPEB funds towards the City’s unfunded liability. 72

5. The redistribution request must be submitted to the Finance Department for verification and confirmation, and then Finance will forward to the City Manager. Confirmation of the change will be made to the originating department by the Finance Department once the change has been approved. 6. No funds authorized in capital outlay may be encumbered unless said purchase was detailed in the “approved” budget. Any Capital Improvement Project (CIP) deferrals due to cost over-runs in other CIP items shall be communicated to the Council and the Controller/Treasurer. The City Manager may approve transfers of savings from completed CIP items to non- completed CIP items. Any transfers that cause the particular item or project to exceed its original budget 10% or greater will be communicated to Council and the Controller/Treasurer. To request an exception in capital outlay or project categories, submit a written memorandum explaining the request and attach a copy of the original budget submission. The memorandum must explain the reason for not purchasing the authorized items. A copy noting the action taken on the request by the City Manager will be returned to the respective department. Council and the Controller/Treasurer will be copied on all exception request approvals. All capital outlay change requests must be accompanied by a Capital Improvement Project worksheet in the following instances: - Scrap a CIP and create a new CIP - Reduce approved CIP and create a new CIP - New funded CIP (grant) The Controller/Treasurer will adjust project budgets each year to include prior year project balances before finalizing the Carry Forward Budget Balances for multi-year projects or projects not completed due to unforeseen circumstances. This process will be followed only on projects that were approved by City Council in a prior year CIP. 7. The City Manager may approve intra-fund transfers (i.e., within the General Fund) of up to five percent per annum, Form COD #98, with the exception of line items associated with salary and benefits. 8. All personnel positions will receive and be adhered to, the documented increases as approved through the budget process. Any exceptions require Council approval. 9. Budget amendments exceeding that authorized above or that affect budget balances shall be referred to the City Council. 73

74

PERSONNEL INFORMATION  PERSONNEL TABLE  PERSONNEL COST SUMMARY  PERSONNEL CHANGES  5 YEAR FORECAST  OVERTIME TRENDS  FY 13 THROUGH FY 16 COMPARISON

FY 2016 DRAFT ANNUAL OPERATING BUDGET - DOVER, DELAWARE City of Dover Fiscal Year 2016 Proposed Budget Personnel Table 2013-2014 2014-2015 2015-2016 DEPT/DIVISION BUDGET BUDGET BUDGET CHANGE CITY CLERK 4.0 4.0 4.0 0.0 CITY MANAGER 3.0 4.0 4.0 0.0 CODE ENFORCEMENT 5.0 5.0 5.0 0.0 CUSTOMER SERVICES 14.0 14.0 14.0 0.0 ECONOMIC DEVELOPMENT 3.0 3.0 3.0 0.0 FACILITIES MANAGEMENT 7.0 7.0 7.0 0.0 FINANCE 8.0 8.0 8.0 0.0 FIRE DEPARTMENT 6.0 6.0 6.0 0.0 FLEET MAINTENANCE 6.0 6.0 6.0 0.0 GROUNDS 13.0 13.0 13.0 0.0 HUMAN RESOURCES 3.0 3.0 3.0 0.0 INFORMATION TECHNOLOGY 5.0 5.0 4.0 (1.0) INSPECTIONS 6.0 6.0 6.0 0.0 LIBRARY 13.0 13.0 13.0 0.0 LIFE SAFETY 3.0 3.0 3.0 0.0 MAYOR 1.0 1.0 1.0 0.0 PARKS AND RECREATION 5.0 5.0 5.0 0.0 PLANNING 5.0 5.0 6.0 1.0 POLICE - TOTAL* 124.0 124.0 135.0 11.0 PROCUREMENT AND INVENTORY 4.0 3.0 3.0 0.0 PUBLIC WORKS - ADMINISTRATION 5.0 5.0 6.0 1.0 PUBLIC WORKS - ENGINEERING 0.0 3.0 3.0 0.0 SANITATION 11.0 11.0 10.0 (1.0) STREETS 8.0 8.0 8.0 0.0 TAX ASSESSOR 3.0 3.0 3.0 0.0 GENERAL FUND AND CDBG TOTAL 265.0 268.0 279.0 11.0 ELECTRIC ADMINISTRATION 3.0 3.0 4.0 1.0 ELECTRIC SYSTEM OPERATIONS 5.0 5.0 5.0 0.0 ELECTRIC ENGINEERING 10.0 10.0 10.0 0.0 ELECTRIC T & D 24.0 24.0 24.0 0.0 METER READING - CUSTOMER SERVICE 3.0 3.0 4.0 1.0 ELECTRIC FUND TOTAL 45.0 45.0 47.0 2.0 WATER/WASTEWATER ENGINEERING 7.0 5.0 5.0 0.0 WATER CONSTRUCTION 5.0 3.0 0.0 (3.0) WATER MANAGEMENT 4.0 4.0 6.0 2.0 WASTEWATER MANAGEMENT 11.0 11.0 11.0 0.0 WATER TREATMENT PLANT 10.0 11.0 13.0 2.0 WATER/WASTEWATER FUND TOTAL 37.0 34.0 35.0 1.0 TOTAL FULL-TIME PERSONNEL 347.0 347.0 361.0 14.0 *101 Officers; 34 Civilians - 135 Total Employees 2013-2014 2014-2015 2015-2016 DEPT/DIVISION BUDGET BUDGET BUDGET CHANGE PART-TIME PERSONNEL CITY COUNCIL COMMITTEES 17.0 17.0 17.0 0.0 CITY MANAGER 0.0 0.0 4.0 4.0 PLANNING COMMISSION 14.0 14.0 14.0 0.0 FIRE 1.0 2.0 2.0 0.0 GROUNDS 0.0 1.0 0.0 (1.0) PARKS AND RECREATION 10.0 14.0 14.0 0.0 LIBRARY 14.0 13.0 19.0 6.0 PROCUREMENT AND INVENTORY 0.0 1.0 1.0 0.0 CUSTOMER SERVICES 1.0 1.0 4.0 3.0 FINANCE 0.0 0.0 1.0 1.0 INFORMATION TECHNOLOGY 0.0 0.0 1.0 1.0 COMMUNITY DEVELOPMENT GRANT 0.0 0.0 0.0 0.0 SUBSTANCE ABUSE GRANT 12.0 15.0 10.0 (5.0) POLICE CADET - GRANT 0.0 0.0 6.0 6.0 TOTAL PART-TIME PERSONNEL 69.0 78.0 93.0 15.0 TOTAL PERSONNEL 416.0 425.0 454.0 29.0 76

FY 2016 DRAFT ANNUAL OPERATING BUDGET - DOVER, DELAWARE City of Dover Personnel Budget Fiscal Year 2016 Total City by Fund Dept/Div Division Base Pay Bonus/Allow./SD Overtime Part Time/Temp Total Total Total Number Title 10-11 On Call 10-11 10-12 10-13 Wages Benefits Personnel 1100-511 City Clerk $ 226,400 $ 900 $ - $ - $ 227,300 $ 129,200 $ 356,500 1200-512 City Council - - - 84,300 84,300 6,700 91,000 1300-513 Assessor 128,500 - - - 128,500 78,800 207,300 1400-514 Fire 236,400 4,600 43,000 10,000 294,000 155,100 449,100 1500-522 Grounds 486,800 8,500 8,300 - 503,600 421,100 924,700 1500-523 Library 591,500 - 5,600 263,100 860,200 427,500 1,287,700 1500-525 Recreation 226,700 - 1,500 107,000 335,200 132,200 467,400 1600-531 Life Safety 143,000 5,400 8,600 - 157,000 63,600 220,600 1600-532 Code Enforcement 215,200 - 5,000 - 220,200 166,200 386,400 1600-533 Planning 373,800 (34,800) 700 17,100 356,800 158,900 515,700 1600-534 Building Inspections 268,500 - 1,800 - 270,300 192,200 462,500 1600-535 Economic Development 147,500 - - - 147,500 63,800 211,300 1700-542 Civilian Police 1,435,700 21,800 66,400 - 1,523,900 925,900 2,449,800 1700-543 Law Enforcement 6,952,300 142,500 445,000 - 7,539,800 4,105,300 11,645,100 1700-544 Police Extra Duty 530,500 - - - 530,500 73,300 603,800 1800-554 Streets 286,200 1,000 4,100 - 291,300 220,200 511,500 1800-555 Sanitation 371,000 1,300 12,100 - 384,400 301,300 685,700 2100-515 City Manager 339,100 7,200 2,000 11,500 359,800 139,500 499,300 2200-516 Information Technology 249,600 900 - 12,700 263,200 178,900 442,100 2300-517 Finance 508,600 1,300 - 17,700 527,600 277,400 805,000 2400-551 Public Works Admin 354,000 1,200 - - 355,200 244,600 599,800 2500-552 Facilities 294,800 900 10,500 - 306,200 226,500 532,700 2600-553 Public Works Engineering 113,900 500 - - 114,400 61,700 176,100 2700-571 Procurement & Inventory 159,200 600 1,000 20,300 181,100 103,100 284,200 2800-572 Fleet Maintenance 266,900 800 1,000 - 268,700 187,700 456,400 2900-529 Customer Service 556,600 - - 85,500 642,100 413,100 1,055,200 3100-518 Human Resources 174,800 900 - - 175,700 141,700 317,400 3200-519 Mayor 45,000 - - - 45,000 11,900 56,900 Total General Fund $ 15,682,500 $ 165,500 $ 616,600 $ 629,200 $ 17,093,800 $ 9,607,400 $ 26,701,200 Dept/Div Division Base Pay Bonus/Allow./SD Overtime Part Time/Temp Total Total Total Number Title 10-11 On Call 10-11 10-12 10-13 Wages Benefits Personnel 2600-553 Engineering $ 302,000 $ 500 $ 800 $ - $ 303,300 $ 151,600 $ 454,900 6800-568 Water 272,400 7,400 13,400 - 293,200 240,200 533,400 6900-569 Wastewater 353,500 20,800 27,000 - 401,300 244,800 646,100 7600-576 Water Treatment 573,000 3,500 32,300 - 608,800 405,400 1,014,200 Total Water/Wastewater Fund $ 1,500,900 $ 32,200 $ 73,500 $ - $ 1,606,600 $ 1,042,000 $ 2,648,600 Dept/Div Division Base Pay Bonus/Allow./SD Overtime Part Time/Temp Total Total Total Number Title 10-11 On Call 10-11 10-12 10-13 Wages Benefits Personnel 8200-562 T&D $ 1,512,800 $ 27,300 $ 115,000 $ - $ 1,655,100 $ 1,425,200 $ 3,080,300 8300-563 Engineering 628,200 9,500 11,000 - 648,700 411,100 1,059,800 8400-564 Administration 250,800 1,200 2,000 - 254,000 119,300 373,300 8500-565 Meter Reading 176,400 4,800 11,100 - 192,300 133,800 326,100 8600-526 System Operators 330,700 5,100 50,000 - 385,800 295,800 681,600 Total Electric Fund $ 2,898,900 $ 47,900 $ 189,100 $ - $ 3,135,900 $ 2,385,200 $ 5,521,100 Dept/Div Division Base Pay Bonus/Allow./SD Overtime Part Time/Temp Total Total Total Number Title 10-11 On Call 10-11 10-12 10-13 Wages Benefits Personnel 9900-596 CDBG $ - $ 36,000 $ - $ - $ 36,000 $ - $ 36,000 9900-542 Police Cadet Program - - - 71,400 71,400 8,900 80,300 1500-581 Substance Abuse Grant - - - 55,800 55,800 4,400 60,200 Total Grant Funds $ - $ 36,000 $ - $ 127,200 $ 163,200 $ 13,300 $ 176,500 GRAND TOTAL $ 20,082,300 $ 281,600 $ 879,200 $ 756,400 $ 21,999,500 $ 13,047,900 $ 35,047,400 77

FY 2016 DRAFT ANNUAL OPERATING BUDGET - DOVER, DELAWARE FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 Division Job title Status Proposed Estimated Estimated Estimated Estimated Estimated LIBRARY LIBRARIAN I Part-time $ 15,700 $ 19,400 $ 19,900 $ 20,500 $ 21,200 $ 21,800 LIBRARY LIBRARIAN I Part-time 15,700 19,400 19,900 20,500 21,200 21,800 LIBRARY LIBRARY CLERK I Part-time 12,800 13,100 13,500 14,000 14,500 15,000 LIBRARY POLICE CADET Part-time 13,400 13,800 14,200 14,600 15,100 15,500 LIBRARY POLICE CADET Part-time 13,400 13,800 14,200 14,600 15,100 15,500 LIBRARY POLICE CADET Part-time 13,400 13,800 14,200 14,600 15,100 15,500 PLANNING PLANNER I Full-time 66,400 74,300 80,400 86,800 93,600 100,800 POLICE ADMIN LAN ANALYST Full-time 67,500 73,200 79,200 85,500 92,200 99,300 POLICE ADMIN ACCREDITION MANAGER/CRIME ANALYST Full-time 70,600 76,600 83,000 89,600 96,700 104,100 LAW ENFORCEMENT PATROLMAN YEAR 4 Full-time 79,500 93,700 97,400 101,000 105,100 109,300 LAW ENFORCEMENT PATROLMAN YEAR 5 Full-time 78,800 93,000 96,700 100,200 104,300 108,500 LAW ENFORCEMENT PATROLMAN YEAR 6 Full-time 92,400 107,100 111,300 115,500 120,100 125,000 LAW ENFORCEMENT PATROLMAN YEAR 7 Full-time 79,500 93,700 97,400 101,000 105,100 109,300 LAW ENFORCEMENT PATROLMAN YEAR 8 Full-time 89,100 98,900 102,700 106,600 110,900 115,300 LAW ENFORCEMENT PATROLMAN YEAR 9 Full-time 73,700 102,800 106,800 110,800 115,300 119,900 LAW ENFORCEMENT PATROLMAN YEAR 10 Full-time 73,500 102,700 106,800 110,800 115,200 119,900 LAW ENFORCEMENT PATROLMAN YEAR 11 Full-time 73,500 102,700 106,800 110,800 115,200 119,900 LAW ENFORCEMENT PATROLMAN YEAR 12 Full-time 73,500 102,700 106,800 110,800 115,200 119,900 CITY MANAGER PRODUCTION WORKERS (4 VIDEO TEMPS) Part-time 12,900 13,300 13,600 14,100 14,500 14,900 INFORMATION TECHNOLOGY ACCOUNT CLERK I Part-time 13,700 14,300 14,800 15,200 15,800 16,200 FINANCE ACCOUNT CLERK II Part-time 19,100 19,800 16,100 16,600 17,100 17,600 PUBLIC WORKS ADMIN PUBLIC WORKS OPERATION MANAGER Full-time 78,400 85,000 92,000 99,500 107,400 115,700 CUSTOMER SERVICE CUSTOMER SERVICE CLERK II STEP 2 Part-time 22,900 23,700 24,500 25,300 26,100 26,900 CUSTOMER SERVICE CUSTOMER SERVICE CLERK II STEP 2 Part-time 22,900 23,700 24,500 25,300 26,100 26,900 CUSTOMER SERVICE CUSTOMER SERVICE CLERK II STEP 2 Part-time 22,900 23,700 24,500 25,300 26,100 26,900 GENERAL FUND 28.0 $ 1,195,300 $ 1,418,200 $ 1,481,200 $ 1,549,500 $ 1,624,200 $ 1,701,400 REDUCTIONS INFORMATON TECHNOLOGY Administrative Assistant_Info Tech Full-time $ (75,800) $ (81,800) $ (88,200) $ (94,900) $ (102,000) $ (105,600) SANITATION Field Supervisor I-Sanitation Full-time (101,800) (109,900) (118,400) (127,500) (137,000) (141,800) GROUNDS Laborer II Part-time (9,400) (10,400) (11,500) (12,600) (13,800) (14,300) Total Reductions - General Fund (3.0) $ (187,000) $ (202,100) $ (218,100) $ (235,000) $ (252,800) $ (261,700) TOTAL GENERAL FUND 25.0 $ 1,008,300 $ 1,216,100 $ 1,263,100 $ 1,314,500 $ 1,371,400 $ 1,439,700 WATER MANAGEMENT UTILITY CONSTRUCTION CREW LDR STEP 6 Full-time $ 85,900 $ 88,900 $ 91,900 $ 95,100 $ 98,400 $ 101,800 WATER MANAGEMENT UTILITY CONSTRUCTION WORKER STEP 6 Full-time 80,500 83,400 86,300 89,400 92,600 95,900 WATER MANAGEMENT HEAVY EQUIPMENT OPERATOR I STEP 15 Full-time 88,800 91,900 95,000 98,300 101,700 105,200 WATER TREATMENT WATER TRTMENT PLT. OPERATOR I STEP 1 Full-time 52,300 54,100 55,900 57,800 59,800 61,800 WATER TREATMENT UTILITY MAINTENANCE MECHANIC I STEP 1 Full-time 52,300 54,100 55,900 57,800 59,800 61,800 WATER/WASTEWATER FUND 5.0 $ 359,800 $ 372,400 $ 385,000 $ 398,400 $ 412,300 $ 426,500 78

FY 2016 DRAFT ANNUAL OPERATING BUDGET - DOVER, DELAWARE FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 Division Job title Status Proposed Estimated Estimated Estimated Estimated Estimated REDUCTIONS WATER CONSTRUCTION HEAVY EQUIPMENT OPERATOR I STEP 15 Full-time $ (82,800) $ (85,600) $ (88,600) $ (91,600) $ (94,700) $ (98,000) WATER CONSTRUCTION UTILITY CONSTRUCTION WORKER STEP 6 Full-time (68,800) (71,200) (73,600) (76,200) (78,900) (81,600) WATER CONSTRUCTION UTILITY CONSTRUCTION CREW LEADER Full-time (77,100) (79,700) (82,400) (85,200) (88,100) (91,100) WATER MANAGEMENT WATER SERVICE PERSON Full-time (84,600) (87,600) (90,700) (93,900) (97,200) (100,600) Total Reductions - Water/Wastewater Fund (4.0) $ (313,300) $ (324,100) $ (335,300) $ (346,900) $ (358,900) $ (371,300) TOTAL WATER/WASTEWATER FUND 1.0 $ 46,500 $ 48,300 $ 49,700 $ 51,500 $ 53,400 $ 55,200 ELECTRIC METERING FIELD SERVICE REPRESENTATIVE Full-time $ 104,000 $ 105,200 $ 111,800 $ 118,900 $ 126,300 $ 130,400 ELECTRIC ADMIN ASST. GENERATION SUPERINTENDENT Full-time 67,200 146,700 159,600 173,300 187,700 194,100 Total ELECTRIC FUND 2.0 $ 171,200 $ 251,900 $ 271,400 $ 292,200 $ 314,000 $ 324,500 POLICE GRANT FUND (710) POLICE ADMIN Police Cadet part-time $ 13,400 $ 13,800 $ 14,200 $ 14,600 $ 15,100 $ 15,500 POLICE ADMIN Police Cadet part-time 13,400 13,800 14,200 14,600 15,100 15,500 POLICE ADMIN Police Cadet part-time 13,400 13,800 14,200 14,600 15,100 15,500 POLICE ADMIN Police Cadet part-time 13,400 13,800 14,200 14,600 15,100 15,500 POLICE ADMIN Police Cadet part-time 13,400 13,800 14,200 14,600 15,100 15,500 POLICE ADMIN Police Cadet part-time 13,400 13,800 14,200 14,600 15,100 15,500 Grant Fund (710) or potential for General Fund 6.0 $ 80,400 $ 82,800 $ 85,200 $ 87,600 $ 90,600 $ 93,000 SUBSTANCE ABUSE GRANT SUBSTANCE ABUSE GRANT TUTOR PT-Temp $ (3,000) $ (3,100) $ (3,200) $ (3,300) $ (3,400) $ (3,500) SUBSTANCE ABUSE GRANT PROGRAM SUPERVISOR PT-Temp (200) (200) (200) (200) (200) (200) SUBSTANCE ABUSE GRANT PLAYGROUND LEADER I PT-Temp (2,800) (2,900) (3,000) (3,100) (3,200) (3,300) SUBSTANCE ABUSE GRANT PLAYGROUND LEADER I PT-Temp (1,000) (1,100) (1,100) (1,100) (1,200) (1,200) SUBSTANCE ABUSE GRANT PLAYGROUND LEADER I PT-Temp (1,000) (1,100) (1,100) (1,100) (1,200) (1,200) Substance Abuse Grant (5.0) $ (8,000) $ (8,400) $ (8,600) $ (8,800) $ (9,200) $ (9,400) TOTALS 29.0 $ 1,298,400 $ 1,590,700 $ 1,660,800 $ 1,737,000 $ 1,820,200 $ 1,903,000 79

FY 2016 DRAFT ANNUAL OPERATING BUDGET - DOVER, DELAWARE CITY OF DOVER OVERTIME COMPARISON FISCAL YEAR 2013 THROUGH 2016 2013 2014 2015 THROUGH APRIL (83.0%) 2016 DEPARTMENT Orig. Budget Actual Variance % To Date Orig. Budget Actual Variance % To Date Orig. Budget Actual Variance % To Date Proposed CITY CLERK - - - --- - - - --- - - - --- - FIRE 44,900 59,659 (14,759) 132.9% 48,800 45,836 2,964 93.9% 32,000 36,838 (4,838) 115.1% 43,000 GROUNDS 15,000 10,147 4,853 67.6% 14,900 15,057 (157) 101.1% 11,100 9,207 1,893 82.9% 8,300 PARKS & RECREATION - 342 (342) --- - 102 (102) --- - 389 (389) --- 1,500 LIBRARY 3,500 4,868 (1,368) 139.1% 3,700 5,496 (1,796) 148.5% 3,900 3,714 186 95.2% 5,600 LIFE SAFETY 7,000 7,608 (608) 108.7% 7,000 9,523 (2,523) 136.0% 7,600 5,642 1,958 74.2% 8,600 CODE ENFORCEMENT 3,000 2,918 82 97.3% 2,000 1,179 821 58.9% 2,000 955 1,045 47.8% 5,000 PLANNING 1,800 770 1,030 42.8% - 377 (377) --- - 43 (43) --- 700 PUBLIC INSPECTIONS - 853 (853) --- 1,000 1,840 (840) --- 1,800 1,575 225 --- 1,800 POLICE CIVILIAN 55,000 77,476 (22,476) 140.9% 66,200 83,514 (17,314) 126.2% 50,000 62,770 (12,770) 125.5% 66,400 POLICE LAW ENFORCEMENT 500,000 446,587 53,413 89.3% 500,000 355,468 144,532 71.1% 400,000 332,872 67,128 83.2% 445,000 STREET 9,000 4,465 4,535 49.6% 8,800 10,867 (2,067) 123.5% 4,700 6,864 (2,164) 146.0% 4,100 SANITATION 15,000 13,406 1,594 89.4% 13,200 26,215 (13,015) 198.6% 12,100 14,886 (2,786) 123.0% 12,100 CITY MANAGER - 1,737 (1,737) --- 1,500 2,513 (1,013) 167.5% 2,000 517 1,483 25.9% 2,000 FINANCE 1,800 - 1,800 0.0% - 104 (104) --- - 37 (37) --- - PW ADMINISTRATION 600 541 59 90.1% - - - --- - - - --- - FACILITIES MANAGEMENT 800 8,514 (7,714) 1064.2% 7,600 14,238 (6,638) 187.3% 10,500 10,445 55 99.5% 10,500 PROCUREMENT & INVENTORY 400 1,749 (1,349) 437.2% - 2,132 (2,132) --- 1,600 546 1,054 --- 1,000 VEHICLE MAINTENANCE 3,500 773 2,727 22.1% 2,400 10,451 (8,051) 435.5% 1,000 5,738 (4,738) 573.8% 1,000 HUMAN RESOURCES - - - --- - - - --- - - - --- - WATER ENGINEERING 600 949 (349) 158.2% 3,300 927 2,373 28.1% 1,600 922 678 57.6% 800 CONSTRUCTION & MAINT 12,500 12,467 33 99.7% 15,000 12,178 2,822 81.2% 7,100 5,179 1,921 72.9% - WATER 11,650 7,354 4,296 63.1% 11,200 11,755 (555) 105.0% 9,100 7,000 2,100 76.9% 13,400 WASTE-WATER 27,050 26,562 488 98.2% 27,100 24,351 2,749 89.9% 27,000 18,602 8,398 68.9% 27,000 WATER TREATMENT PLANT 18,500 34,107 (15,607) 184.4% 19,700 24,591 (4,891) 124.8% 34,800 15,759 19,041 45.3% 32,300 TRANSMISSION/DISTRIBUTION 127,800 172,288 (44,488) 134.8% 127,800 110,376 17,424 86.4% 115,000 74,988 40,012 65.2% 115,000 ELECTRIC ENGINEERING 7,800 18,570 (10,770) 238.1% 15,000 10,912 4,088 72.7% 11,000 6,141 4,859 55.8% 11,000 ELECTRIC ADMINISTRATION - 2,021 (2,021) --- - - - --- 2,000 91 1,909 --- 2,000 ELECTRIC METERING 6,000 11,168 (5,168) 186.1% 8,800 9,377 (577) 106.6% 5,000 7,384 (2,384) 147.7% 11,100 ELECTRIC SYSTEMS OPERATIONS 43,900 61,029 (17,129) 139.0% 50,300 68,038 (17,738) 135.3% 50,000 50,198 (198) 100.4% 50,000 TOTAL 917,100 988,928 (71,828) 107.8% 955,300 857,416 97,884 89.8% 802,900 679,302 123,598 84.6% 879,200 ELECTRIC PLANT OPERATIONS 200,900 195,419 5,481 97.3% 229,500 226,536 2,964 98.7% 198,700 171,910 26,790 86.5% 222,684 POLICE EXTRA DUTY 664,900 738,537 (73,637) 111.1% 690,400 588,971 101,429 85.3% 633,300 279,829 353,471 44.2% 530,500 80

FIVE YEAR FORECAST SUMMARY  GENERAL FUND  WATER/WASTEWATER FUND  ELECTRIC REVENUE FUND

GENERAL FUND

City of Dover General Fund Financial Projections 2016 – 2020 Budget Meetings May 2015 83

Key Assumptions • The FY16 – FY20 Forecast continues to be short on revenues to cover projected expenses incorporating the current growth assumptions. • Projected Revenues  Miscellaneous Revenue – includes Franchise fees, rental income, recreation revenues, administration fees for collecting County impact fees, sale of assets, and other miscellaneous items  Transfers In Other (Funds) – includes transfer of revenues from Transfer Taxes, and Police Grants for Extra Duty reimbursements  Growth Assumptions on page 4 • Projected Operating Expenses  Other Charges represents the set aside for vacation sell back, retirements, and education assistance  Fund Expense – includes Insurance, bad debt expense, City Police Pension Plan appropriations, miscellaneous grant expenses and DDP contributions  Growth assumptions as indicated on page 5 • Maintains Water/Wastewater & Electric Fund Transfers in FY16  Phases-in $25,000 increase for Wastewater each year through 2020 • Funds Capital projects through operating transfers and grants  Exception is the Tar Ditch storm water project, estimated at $6.2 million; Requires debt issuance and/or grants;  Projects for City facilities still to be determined • Will not meet City revenue requirement policy starting in FY17 84

Revenues, Expenditures & Fund Balance 2015B 2016B 2017F 2018F 2019F 2020F FUND BALANCE-BEGINNING 4,364,000 3,977,500 3,982,400 3,858,600 3,396,400 2,316,900 REVENUES AND SOURCES 01-PROPERTY TAXES 11,136,300 13,351,800 13,518,700 13,687,700 13,858,800 14,032,000 02-LICENSES AND PERMITS 2,814,200 2,861,300 2,889,900 2,918,800 2,948,000 2,977,500 03-GRANTS RECEIVED 1,287,700 1,237,700 1,237,700 1,237,700 1,237,700 1,237,700 04-COURT OF CHANCERY FEES 1,074,400 1,065,100 1,086,400 1,108,100 1,130,300 1,152,900 05-SANITATION FEES AND REBATES 2,580,000 2,580,000 2,592,900 2,605,900 2,618,900 2,632,000 06-LIBRARY REVENUE - GENERAL 561,600 522,000 524,600 527,200 529,900 532,500 07-FINES AND POLICE REVENUE 1,288,800 1,235,300 1,247,700 1,260,100 1,272,700 1,285,500 08-INVESTMENT INCOME (LOSS) 40,000 35,000 35,200 35,400 35,500 35,700 09-MISCELLANEOUS SERVICES 925,100 937,700 956,500 975,600 995,100 1,015,000 10-INDIRECT SERVICES BILLING 4,959,300 5,277,800 5,436,100 5,599,200 5,767,200 5,940,200 11-TRANSFERS IN-ELECTRIC 10,000,000 10,000,000 10,000,000 10,000,000 10,000,000 10,000,000 12-TRANSFERS IN-WATER/WW 500,000 850,000 875,000 900,000 925,000 950,000 13-TRANSFERS IN-OTHER 2,628,200 1,876,400 1,909,900 1,937,400 1,965,400 1,994,000 TOTAL REVENUES AND SOURCES 39,795,600 41,830,100 42,310,600 42,793,100 43,284,500 43,785,000 EXPENDITURES AND USES 01-SALARIES AND WAGES 16,733,300 17,093,800 17,478,400 17,915,400 18,363,300 18,822,300 02-FICA 1,204,500 1,267,600 1,296,100 1,328,500 1,361,700 1,395,800 03-HEALTH INSURANCE 2,560,600 3,298,000 3,429,900 3,567,100 3,709,800 3,858,200 04-OTHER-BENEFITS 466,100 551,000 650,200 767,200 774,900 782,600 05-RETIREE HEALTHCARE 1,636,500 1,895,600 1,971,400 2,050,300 2,132,300 2,217,600 07-PENSION 2,707,500 2,693,400 2,760,700 2,829,800 2,900,500 2,973,000 08-OPEB 1,715,600 1,797,400 1,833,300 1,870,000 1,907,400 1,945,600 09-MATERIALS & SUPPLIES 1,269,400 1,372,500 1,386,200 1,400,100 1,414,100 1,428,200 10-ADMIN EXPENDITURES 4,839,300 4,965,100 5,039,600 5,115,200 5,191,900 5,269,800 11-FUND EXPENSE 2,435,000 1,915,000 1,915,000 1,915,000 1,915,000 1,915,000 12-STREET LIGHT 774,500 797,700 821,600 829,800 838,100 846,500 13-OTHER-CHARGES 149,900 637,100 637,100 637,100 637,100 637,100 14-TRANSFER-TO-DEBT 948,400 660,800 678,100 428,700 428,700 428,700 15-TRANSFER-TO-CIP 2,196,000 2,880,200 2,536,800 2,600,900 2,789,200 2,683,300 TOTAL REVENUES AND SOURCES 40,179,600 41,825,200 42,434,400 43,255,100 44,364,000 45,203,700 SURPLUS/(DEFICIT) (384,000) 4,900 (123,800) (462,000) (1,079,500) (1,418,700) % REVENUE -1% 0% 0% -1% -2% -3% FUND BALANCE-ENDING 3,977,532 3,982,432 3,858,600 3,396,400 2,316,900 898,200 % OF REVENUES AND SOURCES 10.0% 9.5% 9.1% 7.9% 5.4% 2.1% Additional Funds Needed (793,900) (636,000) (473,800) 27,000 1,145,900 2,604,600 85

Revenue Assumptions REVENUES AND SOURCES ACCTTYPE 2015B 2016B 2017F 2018F 2019F 2020F ACCTTYPE 1.3% 1.3% 1.3% 1.3% 01-PROPERTY TAXES 11,136,300 13,351,800 13,518,700 13,687,700 13,858,800 14,032,000 01-PROPERTY TAXES 0.4% 19.9% 1.3% 1.3% 1.3% 1.2% ACCTTYPE 1.0% 1.0% 1.0% 1.0% 03-LICENSES AND PERMITS 2,814,200 2,861,300 2,889,900 2,918,800 2,948,000 2,977,500 03-LICENSES AND PERMITS -9.0% 1.7% 1.0% 1.0% 1.0% 1.0% ACCTTYPE 0.0% 0.0% 0.0% 0.0% 04-GRANTS RECEIVED 1,447,700 1,237,700 1,237,700 1,237,700 1,237,700 1,237,700 04-GRANTS RECEIVED 4.9% -14.5% 0.0% 0.0% 0.0% 0.0% ACCTTYPE 2.0% 2.0% 2.0% 2.0% 05-COURT OF CHANCERY FEES 1,074,400 1,065,100 1,086,400 1,108,100 1,130,300 1,152,900 05-COURT OF CHANCERY FEES 3.9% -0.9% 2.0% 2.0% 2.0% 2.0% ACCTTYPE 0.5% 0.5% 0.5% 0.5% 06-SANITATION FEES AND REBATES 2,580,000 2,580,000 2,592,900 2,605,865 2,618,894 2,631,988 06-SANITATION FEES AND REBATES -0.6% 0.0% 0.5% 0.5% 0.5% 0.5% ACCTTYPE 0.5% 0.5% 0.5% 0.5% 07-LIBRARY REVENUE - GENERAL 561,600 522,000 524,610 527,233 529,869 532,519 07-LIBRARY REVENUE - GENERAL 12.6% -7.1% 0.5% 0.5% 0.5% 0.5% ACCTTYPE 1.0% 1.0% 1.0% 1.0% 08-FINES 1,288,800 1,235,300 1,247,653 1,260,130 1,272,731 1,285,458 08-FINES 5.9% -4.2% 1.0% 1.0% 1.0% 1.0% ACCTTYPE 0.5% 0.5% 0.5% 0.5% 09-INVESTMENT INCOME (LOSS) 40,000 40,000 40,200 40,401 40,603 40,806 09-INVESTMENT INCOME (LOSS) -7.4% 0.0% 0.5% 0.5% 0.5% 0.5% ACCTTYPE 2.0% 2.0% 2.0% 2.0% 10-MISCELLANEOUS SERVICES 925,100 958,000 977,160 996,703 1,016,637 1,036,970 10-MISCELLANEOUS SERVICES -26.9% 3.6% 2.0% 2.0% 2.0% 2.0% ACCTTYPE 3.0% 3.0% 3.0% 3.0% 11-INDIRECT SERVICES BILLING 4,959,300 5,277,800 5,436,134 5,599,218 5,767,195 5,940,210 11-INDIRECT SERVICES BILLING 6.7% 6.4% 3.0% 3.0% 3.0% 3.0% ACCTTYPE 0.0% 0.0% 0.0% 0.0% 12-TRANSFERS IN-OTHER 178,000 86,400 86,400 86,400 86,400 86,400 12-TRANSFERS IN-OTHER -57.3% -51.5% 0.0% 0.0% 0.0% 0.0% ACCTTYPE 0.0% 0.0% 0.0% 0.0% 12-TRANSFERS IN-ELECTRIC FUND (480) 10,000,000 10,000,000 10,000,000 10,000,000 10,000,000 10,000,000 12-TRANSFERS IN-ELECTRIC FUND (480) 25.0% 0.0% 0.0% 0.0% 0.0% 0.0% ACCTTYPE 0.0% 0.0% 0.0% 0.0% 12-TRANSFERS IN-WATER/WW FUND (412) 500,000 850,000 875,000 900,000 925,000 950,000 12-TRANSFERS IN-WATER/WW FUND (412) 0.0% 70.0% 2.9% 2.9% 2.8% 2.7% ACCTTYPE 0.0% 0.0% 0.0% 0.0% 12-TRANSFERS IN-ERLSP (212) 450,000 450,000 450,000 450,000 450,000 450,000 12-TRANSFERS IN-ERLSP (212) 25.9% 0.0% 0.0% 0.0% 0.0% 0.0% ACCTTYPE 2.5% 2.0% 2.0% 2.0% 12-TRANSFERS IN-REALTY TRANSFER TAX 1,525,200 1,340,000 1,373,500 1,400,970 1,428,989 1,457,569 12-TRANSFERS IN-REALTY TRANSFER TAX -1.2% -12.1% 2.5% 2.0% 2.0% 2.0% 86

Expenditure Assumptions EXPENDITURES AND USES ACCTTYPE 2015B 2016B 2017F 2018F 2019F 2020F ACCTTYPE 2.3% 2.5% 2.5% 2.5% 01-SALARIES AND WAGES 16,733,300 17,093,800 17,478,411 17,915,371 18,363,255 18,822,336 01-SALARIES AND WAGES 5.2% 2.2% 2.3% 2.5% 2.5% 2.5% ACCTTYPE 2.3% 2.5% 2.5% 2.5% 02-FICA 1,204,500 1,267,600 1,296,121 1,328,524 1,361,737 1,395,781 02-FICA 2.1% 5.2% 2.3% 2.5% 2.5% 2.5% ACCTTYPE 4.0% 4.0% 4.0% 4.0% 03-HEALTH INSURANCE 2,560,600 3,298,000 3,429,920 3,567,117 3,709,801 3,858,194 03-HEALTH INSURANCE 7.1% 28.8% 4.0% 4.0% 4.0% 4.0% ACCTTYPE 18.0% 18.0% 1.0% 1.0% 04-OTHER-BENEFITS 466,100 551,000 650,180 767,212 774,885 782,633 04-OTHER-BENEFITS -2.5% 18.2% 18.0% 18.0% 1.0% 1.0% ACCTTYPE 4.0% 4.0% 4.0% 4.0% 05-RETIREE HEALTHCARE 1,636,500 1,895,600 1,971,424 2,050,281 2,132,292 2,217,584 05-RETIREE HEALTHCARE 0.0% 15.8% 4.0% 4.0% 4.0% 4.0% ACCTTYPE 0.0% 0.0% 0.0% 0.0% 06-LUMP SUM PENSION 543,000 - - - - - 06-LUMP SUM PENSION 348.8% -100.0% 0.0% 0.0% 0.0% 0.0% ACCTTYPE 2.5% 2.5% 2.5% 2.5% 07-PENSION 2,707,500 2,693,400 2,760,735 2,829,753 2,900,497 2,973,010 07-PENSION -3.2% -0.5% 2.5% 2.5% 2.5% 2.5% ACCTTYPE 2.0% 2.0% 2.0% 2.0% 08-OPEB 1,715,600 1,797,400 1,833,348 1,870,015 1,907,415 1,945,564 08-OPEB 18.2% 4.8% 2.0% 2.0% 2.0% 2.0% ACCTTYPE 1.0% 1.0% 1.0% 1.0% 09-MATERIALS & SUPPLIES 1,269,400 1,372,500 1,386,225 1,400,087 1,414,088 1,428,229 09-MATERIALS & SUPPLIES 4.9% 8.1% 1.0% 1.0% 1.0% 1.0% ACCTTYPE 1.5% 1.5% 1.5% 1.5% 10-ADMIN EXPENDITURES 4,839,300 4,965,100 5,039,577 5,115,170 5,191,898 5,269,776 10-ADMIN EXPENDITURES 0.5% 2.6% 1.5% 1.5% 1.5% 1.5% ACCTTYPE 0.0% 0.0% 0.0% 0.0% 11-FUND EXPENSE 2,435,000 1,915,000 1,915,000 1,915,000 1,915,000 1,915,000 11-FUND EXPENSE 22.2% -21.4% 0.0% 0.0% 0.0% 0.0% ACCTTYPE 3.0% 1.0% 1.0% 1.0% 12-STREET LIGHT 774,500 797,700 821,631 829,847 838,146 846,527 12-STREET LIGHT 0.0% 3.0% 3.0% 1.0% 1.0% 1.0% ACCTTYPE 0.0% 0.0% 0.0% 0.0% 13-OTHER-CHARGES 329,900 637,100 637,100 637,100 637,100 637,100 13-OTHER-CHARGES 23.7% 93.1% 0.0% 0.0% 0.0% 0.0% ACCTTYPE 14-TRANSFER-TO-DEBT 948,400 660,800 479,900 479,900 479,900 479,900 14-TRANSFER-TO-DEBT 71.8% -30.3% -27.4% 0.0% 0.0% 0.0% ACCTTYPE 15-TRANSFER-TO-CIP 2,196,000 2,880,200 2,536,800 2,600,900 2,789,200 2,683,280 15-TRANSFER-TO-CIP 51.6% 31.2% -11.9% 2.5% 7.2% -3.8% 87

Capital Projects - Funding Sources CAPITAL IMPROVEMENTS PROGRAM - PROJECTS 2015B 2016B 2017F 2018F 2019F 2020F BEGINNING BALANCE 2,654,600 154,800 154,800 154,800 154,800 154,800 APPROPRIATIONS & RECEIPTS APPROPRIATION FROM GENERAL FUND 2,196,000 2,880,200 2,536,800 2,600,900 2,789,200 2,683,280 TRANSFER FROM PARKLAND RESERVE 104,000 - 40,000 10,000 150,000 - TEMPORARY/LONG-TERM FINANCING 918,300 - 2,067,000 2,067,000 2,067,000 - BOND PROCEEDS 2,675,000 - - - - - RECREATION GRANTS 48,000 - 80,000 43,000 280,000 - PUBLIC WORKS GRANTS - DNREC 120,000 - 30,000 - - 250,000 DEMA & PUBLIC SAFETY GRANTS 40,000 - - - - - SALE OF ASSETS & AUCTION RECEIPTS - 20,300 - - - - INTEREST EARNINGS - 5,000 - - - TOTAL RECEIPTS 6,101,300 2,905,500 4,753,800 4,720,900 5,286,200 2,933,280 TOTAL BEGINNING BALANCE & REVENUES 8,755,900 3,060,300 4,908,600 4,875,700 5,441,000 3,088,080 88

Capital Projects – Use of Funds (See CIP section for details) CAPITAL IMPROVEMENTS PROGRAM - PROJECTS 2015B 2016B 2017F 2018F 2019F 2020F PROGRAM OPERATING EXPENDITURES 541 POLICE ADMINISTRATION 601,700 360,900 217,100 240,600 242,300 339,700 PUBLIC SERVICES 522 GROUNDS 86,700 201,100 64,000 59,800 188,000 153,000 531 LIFE SAFETY - 55,700 29,500 17,500 - - 534 PUBLIC INSPECTIONS - - 16,000 - - - 551 P W ADMINISTRATION - - 34,000 - - - 554 STREET 5,979,000 1,483,500 3,366,000 3,441,000 3,417,500 1,419,500 555 SANITATION 256,500 449,000 447,000 463,000 315,000 321,800 TOTAL PUBLIC SERVICES 6,322,200 2,189,300 3,956,500 3,981,300 3,920,500 1,894,300 PLANNING & CODE ENFORCEMENT 533 PLANNING - - 16,000 - - - 532 CODE ENFORCEMENT - - - 23,800 - - TOTAL PLANNING & CODE ENFORCEMENT - - 16,000 23,800 - - 514 FIRE DEPARTMENT 827,300 238,500 319,200 319,200 409,200 422,680 525 RECREATION 284,400 - 190,000 96,000 630,000 250,000 TOTAL PROGRAM EXPENDITURES 8,035,600 2,788,700 4,698,800 4,660,900 5,202,000 2,906,680 ADMINISTRATIVE & SUPPORT EXPENDITURES 515 CITY MANAGER - 32,800 - - - - 552 FACILITIES MANAGEMENT - - 20,000 22,000 24,200 26,600 571 CENTRAL SERVICES 55,000 - - - - - 572 VEHICLE MAINTENANCE - 84,000 35,000 38,000 60,000 - TOTAL ADMINISTRATIVE & SUPPORT EXPENDITURES 55,000 116,800 55,000 60,000 84,200 26,600 TOTAL CAPITAL INVESTMENT 8,090,600 2,905,500 4,753,800 4,720,900 5,286,200 2,933,280 TRANSFERS TO RESERVES PARKLAND RESERVE 180,000 - - - CAPITAL ASSET RESERVE 330,500 - - - BUDGET BALANCE - WORKING CAPITAL 154,800 154,800 154,800 154,800 154,800 154,800 TOTAL BUDGET BALANCE & EXPENDITURES 8,755,900 3,060,300 4,908,600 4,875,700 5,441,000 3,088,080 89

General Fund Projected Debt Service 2012 $3,660,000 2014 SeriesB Green Energy Fiscal Year Total Debt Net Debt Tax- Exempt 2014 Series A Refunding Debt Service Ending Service Service Loan * Bonds Bond Contribution - - - 6/30/2016 224,700 204,000 232,100 660,800 (98,500) 562,300 6/30/2017 224,700 204,000 249,400 678,100 (98,500) 579,600 6/30/2018 224,700 204,000 - 428,700 (98,500) 330,200 6/30/2019 224,700 204,000 - 428,700 (98,500) 330,200 6/30/2020 224,700 204,000 - 428,700 (98,500) 330,200 6/30/2021 224,700 204,000 - 428,700 (98,500) 330,200 6/30/2022 224,700 204,000 - 428,700 (98,500) 330,200 6/30/2023 224,700 204,000 - 428,700 (98,500) 330,200 6/30/2024 224,700 204,000 - 428,700 (98,500) 330,200 6/30/2025 224,700 204,000 - 428,700 (98,500) 330,200 6/30/2026 224,700 204,000 - 428,700 (98,500) 330,200 6/30/2027 224,700 204,000 - 428,700 (98,500) 330,200 6/30/2028 224,700 204,000 - 428,700 (98,500) 330,200 6/30/2029 224,700 204,000 - 428,700 (98,500) 330,200 6/30/2030 224,700 204,000 - 428,700 (98,500) 330,200 6/30/2031 224,700 204,000 - 428,700 (98,500) 330,200 6/30/2032 224,700 204,000 - 428,700 (98,500) 330,200 6/30/2033 205,800 204,000 - 409,800 (98,500) 311,300 6/30/2034 - 204,000 - 204,000 - 204,000 6/30/2035 - 204,000 - 204,000 - 204,000 6/30/2036 - Totals $ 4,025,700 $ 4,080,000 $ 481,500 $ 8,587,200 $ (1,773,000) $ 6,814,200 Library & Garrison Farm 2003 Bond Library Streets & Equipment Refinanced 90

WATER/WASTEWATER FUND

City of Dover Water and Wastewater Fund Financial Projections 2016 – 2020 Budget Meetings May 2015 92

Financial Projections • An informational tool provided to those charged with governance and management of the City. • A planning tool used for setting future goals and objectives to meet the City’s financial requirements. • A tool to insure we are meeting three main objectives. ▫ Positive net income as measured by audited generally accepted accounting principles (GAAP accounting) ▫ Sufficient revenues to cover debt service covenants and ratios as measured by GAAP accounting ▫ Sufficient (positive) cash balances to cover items not included in the income statement as measured by budgetary accounting 93

FY16 – FY20 Key Assumptions • T/Gallons Growth & Revenues  FY16 includes increased revenues attributed to Calpine Generating Station  Forecast includes an assumed .5% growth rate in FY17 and FY20  Water Tank space leases projected to increase at 2 1/2% each year • Projected Operating Expenses includes the following assumptions:  Pay increases included for applicable Collective Bargaining Agreements  Non-Bargaining increases 3%, except certain Manager’s/Supervisor’s (2% wage increase and a 1% bonus)  Growth in Division expenses 2017 – 2020 = 3% annual  Increased retiree health insurance premiums - 5.0% annual  Growth in expenses is greater than the assumptions in revenue growth • Increases General Fund Transfer for FY16 – Water $550,000 & Wastewater $300,000 from $250,000 each • Transfer to Contingency Reserve in FY16, $32,000 to meet policy requirement as % of revenue • Proposal to increase General Fund Transfer $25,000 each year for Wastewater . Over a period of 5 years starting in FY17. • Maintains transfers to Capital Project Fund each year for water quality and inflow/infiltration projects • Includes systematic write off of current water meters (approx. $700,000) to be replaced with new meters over the next five years • Emphasis on level of capital improvements to replace failing infrastructure • Impact Fees are projected to be used to pay debt service and partial wastewater project financing • The Wastewater Utility experiences a negative cash position starting in FY17. Unless greater growth occurs or realized costs reductions are sustained the wastewater rate would need to be increased by $.29 or 11% to maintain positive cash over the four years, assuming all the above assumptions are met. Approximately $370,000. 94

Net Income – Combined Water & Wastewater Revised Proposed Projection Projection Projection Projection Yr 1 - Yr 5 2015 2016 2017 2018 2019 2020 Total Net Income - Combined Water & Wastewater Water Fees $ 4,616,400 $ 6,200,000 $ 6,231,000 $ 6,262,200 $ 6,293,500 $ 6,325,000 $ 31,311,700 Wastewater Fees 3,706,800 3,728,000 4,229,100 4,248,500 4,268,000 4,287,600 20,761,200 Treatment Fees - Kent County 2,902,600 3,026,500 3,041,600 3,056,800 3,072,100 3,087,500 15,284,500 Groundwater Inflow Adjustment 1,862,500 1,864,300 1,873,600 1,883,000 1,892,400 1,901,900 9,415,200 Miscellaneous Income - Water 363,900 373,900 382,400 391,200 400,200 409,400 1,957,100 Miscellaneous Income - Wastewater 32,000 32,000 32,000 32,000 32,000 32,000 160,000 Impact Fees - Water 462,400 250,000 250,000 250,000 250,000 250,000 1,250,000 Impact Fees - Wastewater 416,700 250,000 250,000 250,000 250,000 250,000 1,250,000 Total Revenue 14,363,300 15,724,700 16,289,700 16,373,700 16,458,200 16,543,400 81,389,700 Treatment Fees - Kent County (4,004,200) (4,130,000) (4,150,700) (4,171,500) (4,192,400) (4,213,400) (20,858,000) Operating Expenses - Water (3,398,900) (3,881,200) (4,001,500) (4,117,600) (4,237,400) (4,360,700) (20,598,400) Operating Expenses - Wastewater (2,049,600) (2,117,900) (2,189,500) (2,255,800) (2,324,000) (2,394,600) (11,281,800) Operating Transfers - Out Water (250,000) (550,000) (550,000) (550,000) (550,000) (550,000) (2,750,000) Operating Transfers - Out Wastewater (250,000) (300,000) (325,000) (350,000) (375,000) (400,000) (1,750,000) Total Operating Expenses (9,952,700) (10,979,100) (11,216,700) (11,444,900) (11,678,800) (11,918,700) (57,238,200) Operating Income 4,410,600 4,745,600 5,073,000 4,928,800 4,779,400 4,624,700 24,151,500 Non-Oper. Rev. - Interest on Operating 23,000 3,000 3,000 3,000 3,000 3,000 15,000 Non-Oper. Rev. - Interest on Reserves 13,600 22,600 21,800 20,700 19,700 18,400 103,200 Income Available For Debt Service 4,447,200 4,771,200 5,097,800 4,952,500 4,802,100 4,646,100 24,269,700 Interest for Long-Term Debt (390,500) (370,100) (349,400) (328,500) (306,700) (284,400) (1,639,100) Cash From Operations 4,056,700 4,401,100 4,748,400 4,624,000 4,495,400 4,361,700 22,630,600 Depreciation Expense (2,737,200) (2,866,600) (3,050,800) (3,218,500) (3,444,400) (3,567,000) (16,147,300) Net Income ($) $ 1,319,500 $ 1,534,500 $ 1,697,600 $ 1,405,500 $ 1,051,000 $ 794,700 $ 6,483,300 Debt Service Coverage Income Avail. for Debt Service $ 4,447,200 $ 4,771,200 $ 5,097,800 $ 4,952,500 $ 4,802,100 $ 4,646,100 $ 24,269,700 Total Debt Service $ 1,152,000 $ 1,132,100 $ 1,127,100 $ 1,127,200 $ 1,131,700 $ 1,126,000 $ 5,644,100 Debt Service Coverage Ratio (1.20) 3.86 4.21 4.52 4.39 4.24 4.13 Transfer to I & E Fund - Combined $ 3,000,000 $ 3,300,000 $ 3,530,400 $ 3,425,600 $ 3,420,800 $ 3,414,800 $ 17,091,600 Transfer to Cap Asset & Cont. Reserve - Combined - 32,000 - - - - 32,000 Reinvestment of Reserve Interest - Combined 13,600 22,600 21,800 20,700 19,700 18,400 103,200 Debt Service Principal - Combined 761,500 762,000 777,700 798,700 825,000 841,600 4,005,000 Total Cash Budget Requirements - Combined $ 3,775,100 $ 4,116,600 $ 4,329,900 $ 4,245,000 $ 4,265,500 $ 4,274,800 $ 21,231,800 Net Positive/(Negative Cash) $ 281,600 $ 284,500 $ 418,500 $ 379,000 $ 229,900 $ 86,900 $ 1,398,800 95

Net Margins - Water Revised Proposed Projection Projection Projection Projection Yr 1 - Yr 5 2015 2016 2017 2018 2019 2020 Total Net Income - Water Water Fees $ 4,616,400 $ 6,200,000 $ 6,231,000 $ 6,262,200 $ 6,293,500 $ 6,325,000 $ 31,311,700 Miscellaneous Income - Water 363,900 373,900 382,400 391,200 400,200 409,400 1,957,100 Impact Fees - Water 462,400 250,000 250,000 250,000 250,000 250,000 1,250,000 Total Revenue 5,442,700 6,823,900 6,863,400 6,903,400 6,943,700 6,984,400 34,518,800 Operating Expenses - Water (3,398,900) (3,881,200) (4,001,500) (4,117,600) (4,237,400) (4,360,700) (20,598,400) Operating Transfers - Out (250,000) (550,000) (550,000) (550,000) (550,000) (550,000) (2,750,000) Total Operating Expenses (3,648,900) (4,431,200) (4,551,500) (4,667,600) (4,787,400) (4,910,700) (23,348,400) Operating Income 1,793,800 2,392,700 2,311,900 2,235,800 2,156,300 2,073,700 11,170,400 Non-Oper. Rev. - Interest on Operating 9,000 1,000 1,000 1,000 1,000 1,000 5,000 Non-Oper. Rev. - Interest on Reserves 6,700 6,200 6,400 6,600 6,700 6,700 32,600 Income Available For Debt Service 1,809,500 2,399,900 2,319,300 2,243,400 2,164,000 2,081,400 11,208,000 Interest for Long-Term Debt (203,400) (193,200) (182,900) (172,500) (161,700) (150,500) (860,800) Cash From Operations 1,606,100 2,206,700 2,136,400 2,070,900 2,002,300 1,930,900 10,347,200 Depreciation Expense (1,346,400) (1,412,800) (1,521,800) (1,602,900) (1,685,200) (1,748,100) (7,970,800) Net Income ($) $ 259,700 $ 793,900 $ 614,600 $ 468,000 $ 317,100 $ 182,800 $ 2,376,400 Debt Service Coverage Income Avail. for Debt Service $ 1,809,500 $ 2,399,900 $ 2,319,300 $ 2,243,400 $ 2,164,000 $ 2,081,400 $ 11,208,000 Total Debt Service $ 560,100 $ 545,200 $ 541,600 $ 541,600 $ 545,000 $ 540,600 $ 2,714,000 Debt Service Coverage Ratio 3.23 4.40 4.28 4.14 3.97 3.85 Transfer to I & E Fund - Water $ 1,200,000 $ 1,800,000 $ 1,700,000 $ 1,600,000 $ 1,600,000 $ 1,600,000 $ 8,300,000 Transfer to Capital Asset & Contingency Reserves - 32,000 - - - - 32,000 Reinvestment of Reserve Interest 6,700 6,200 6,400 6,600 6,700 6,700 32,600 Debt Service Principal 356,700 352,000 358,700 369,100 383,300 390,100 1,853,200 Total Cash Budget Requirements 1,563,400 2,190,200 2,065,100 1,975,700 1,990,000 1,996,800 10,217,800 Net Positive/(Negative Cash) $ 42,700 $ 16,500 $ 71,300 $ 95,200 $ 12,300 $ (65,900) $ 129,400 96

Net Margins - Wastewater 11.0% Revised Proposed Projection Projection Projection Projection Yr 1 - Yr 5 2015 2016 2017 2018 2019 2020 Total Net Income - Wastewater Wastewater Fees $ 3,706,800 $ 3,728,000 $ 4,229,100 $ 4,248,500 $ 4,268,000 $ 4,287,600 $ 20,761,200 Treatment Fees - Kent County 2,902,600 3,026,500 3,041,600 3,056,800 3,072,100 3,087,500 15,284,500 Groundwater Inflow Adjustment 1,862,500 1,864,300 1,873,600 1,883,000 1,892,400 1,901,900 9,415,200 Miscellaneous Income - Wastewater 32,000 32,000 32,000 32,000 32,000 32,000 160,000 Impact Fees - Wastewater 416,700 250,000 250,000 250,000 250,000 250,000 1,250,000 Total Revenue 8,920,600 8,900,800 9,426,300 9,470,300 9,514,500 9,559,000 46,870,900 Treatment Expense - Kent County (4,004,200) (4,130,000) (4,150,700) (4,171,500) (4,192,400) (4,213,400) (20,858,000) Operating Expenses - Wastewater (2,049,600) (2,117,900) (2,189,500) (2,255,800) (2,324,000) (2,394,600) (11,281,800) Operating Transfers - Out (250,000) (300,000) (325,000) (350,000) (375,000) (400,000) (1,750,000) Total Operating Expenses (6,303,800) (6,547,900) (6,665,200) (6,777,300) (6,891,400) (7,008,000) (33,889,800) Operating Income 2,616,800 2,352,900 2,761,100 2,693,000 2,623,100 2,551,000 12,981,100 Non-Oper. Rev. - Interest on Operating 14,000 2,000 2,000 2,000 2,000 2,000 10,000 Non-Oper. Rev. - Interest on Reserves 6,900 16,400 15,400 14,100 13,000 11,700 70,600 Income Available For Debt Service 2,637,700 2,371,300 2,778,500 2,709,100 2,638,100 2,564,700 13,061,700 Interest for Long-Term Debt (187,100) (176,900) (166,500) (156,000) (145,000) (133,900) (778,300) Cash From Operations 2,450,600 2,194,400 2,612,000 2,553,100 2,493,100 2,430,800 12,283,400 Depreciation Expense (1,390,800) (1,453,800) (1,529,000) (1,615,600) (1,759,200) (1,818,900) (8,176,500) Net Income ($) $ 1,059,800 $ 740,600 $ 1,083,000 $ 937,500 $ 733,900 $ 611,900 $ 4,106,900 Debt Service Coverage Income Avail. for Debt Service $ 2,637,700 $ 2,371,300 $ 2,778,500 $ 2,709,100 $ 2,638,100 $ 2,564,700 $ 13,061,700 Total Debt Service $ 591,900 $ 586,900 $ 585,500 $ 585,600 $ 586,700 $ 585,400 $ 2,930,100 Debt Service Coverage Ratio 4.46 4.04 4.75 4.63 4.50 4.38 Transfer to I & E Fund - Wastewater $ 1,800,000 $ 1,500,000 $ 1,830,400 $ 1,825,600 $ 1,820,800 $ 1,814,800 $ 8,791,600 Reinvestment of Reserve Interest 6,900 16,400 15,400 14,100 13,000 11,700 70,600 Debt Service Principal 404,800 410,000 419,000 429,600 441,700 451,500 2,151,800 Total Cash Budget Requirements $ 2,211,700 $ 1,926,400 $ 2,264,800 $ 2,269,300 $ 2,275,500 $ 2,278,000 $ 11,014,000 Net Positive/(Negative Cash) $ 238,900 $ 26 000 $ 347,200 $ 283,800 $ 217,600 $ 152,800 $ 1,269,400 97

Revenues Revised Proposed Projection Projection Projection Projection 5 Yr. Prjctn 2015 2016 2017 2018 2019 2020 Total Annual Rate Revenues Water Fees $ 4,616,400 $ 6,200,000 $ 6,231,000 $ 6,262,200 $ 6,293,500 $ 6,325,000 $ 31,311,700 Rate Increases - Water - - - - - - - Subtotal Water 4,616,400 6,200,000 6,231,000 6,262,200 6,293,500 6,325,000 31,311,700 Wastewater Fees 3,706,800 3,728,000 3,859,500 3,878,900 3,898,400 3,918,000 19,282,800 Rate Increases - Wastewater - - 369,600 369,600 369,600 369,600 1,478,400 Subtotal Wastewater 3,706,800 3,728,000 4,229,100 4,248,500 4,268,000 4,287,600 20,761,200 Treatment Fees - Kent County 2,902,600 3,026,500 3,041,600 3,056,800 3,072,100 3,087,500 15,284,500 Treatment Adj. - I & I 1,862,500 1,864,300 1,873,600 1,883,000 1,892,400 1,901,900 9,415,200 Rate Increase - I & I - - - - - - - Subtotal Groundwater 1,862,500 1,864,300 1,873,600 1,883,000 1,892,400 1,901,900 9,415,200 Total Annual Rate Revenues ($) $ 13,088,300 $ 14,818,800 $ 15,375,300 $ 15,450,500 $ 15,526,000 $ 15,602,000 $ 76,772,600 Other Revenues Impact Fees - Water 462,400 250,000 250,000 250,000 250,000 250,000 1,250,000 Impact Fees - Wastewater 416,700 250,000 250,000 250,000 250,000 250,000 1,250,000 Miscellaneous Service Revenue - Water 32,000 32,000 32,000 32,000 32,000 32,000 160,000 Miscellaneous Service Revenue - Wastewater 32,000 32,000 32,000 32,000 32,000 32,000 160,000 Rent Revenue - Water Tanks 331,900 341,900 350,400 359,200 368,200 377,400 1,797,100 Total Other Revenues ($) $ 1,275,000 $ 905,900 $ 914,400 $ 923,200 $ 932,200 $ 941,400 $ 4,617,100 Total Revenues ($) $ 14,363,300 $ 15,724,700 $ 16,289,700 $ 16,373,700 $ 16,458,200 $ 16,543,400 $ 81,389,700 98

Expenses Revised Projection Projection Projection Projection Projection 5 Yr. Prjctn Water & Wastewater 2015 2016 2017 2018 2019 2020 Total Operating Expense Kent County Sewer Fees $4,004,200 $4,130,000 $4,150,700 $4,171,500 $4,192,400 $4,213,400 $20,858,000 General Administration 1,371,100 1,504,500 1,549,600 1,596,100 1,644,000 1,693,300 7,987,500 Water Services 488,600 675,200 695,500 716,400 737,900 760,000 3,585,000 Water Treatment Plant 1,582,200 1,909,600 1,966,900 2,025,900 2,086,700 2,149,300 10,138,400 Water Construction 253,300 - - - - - - Wastewater Services 974,700 971,300 1,000,400 1,030,400 1,061,300 1,093,100 5,156,500 Engineering & Inspection 502,400 518,700 534,300 550,300 566,800 583,800 2,753,900 Non Capital Expenses in Fund 417 70,000 175,000 175,000 175,000 175,000 175,000 875,000 Depreciation 2,737,200 2,866,600 3,050,800 3,218,500 3,444,400 3,567,000 16,147,300 Allowance for Bad Debts - - 5,000 5,000 5,000 5,000 20,000 Other Employment Expenses (VSB) 6,200 20,000 20,600 21,200 21,800 22,600 106,200 Retiree Health Care 200,000 178,600 187,500 196,900 206,700 217,000 986,700 Bank & Credit Card Fees - 46,200 46,200 46,200 46,200 46,200 231,000 Inventory/Fixed Asset Writeoffs - - 10,000 10,000 10,000 10,000 40,000 Projected Operating Expense $12,189,900 $12,995,700 $13,392,500 $13,763,400 $14,198,200 $14,535,700 $68,885,500 Excluding Depreciation $9,452,700 $10,129,100 $10,341,700 $10,544,900 $10,753,800 $10,968,700 $52,738,200 99

Capital Improvement Plan Revised Proposed Projection Projection Projection Fiscal Year 5 Yr Projctd CAPITAL PROJECTS 2015 2016 2017 2018 2019 2020 Total Vehicles & Equipment (Split W/WW 50%) $ - $ - $ 10,500 $ 11,000 $ 11,500 $ 14,000 $ 47,000 Water, Water Construction & Water Treatment Vehicles & Equipment - Water 105,000 44,100 265,000 149,700 224,300 120,000 803,100 Meter Reading - Radio Read Meters (Split W/WW 50%) 9,500 150,000 200,000 200,000 200,000 200,000 950,000 1.0 MG Elevated Storage Tank 2,470,700 - - - - - - West Dover Connector - Design 336,000 - - - - - - Piney Point Well 3,000 - - - - - - Garrison Oak Technical Park - Water Tower 4,221,600 - - - - - - Fence at Bayard Avenue Water Tower - 89,000 - - - - 89,000 Projects w ith Locations to be Determined Future Well Installation - 80,000 100,000 1,098,250 - - 1,278,250 Wellhead Redevelopment 80,000 82,500 85,000 87,500 90,000 92,500 437,500 Misc. Distribution Improvements 6,000 - - - - - - Water Quality Improvements 4,800 1,000,000 720,800 342,850 960,000 1,000,000 4,023,650 Emergency Repairs - line breaks 75,000 - - - - - - SCADA Upgrades 78,000 83,000 88,000 - - - 171,000 Treatment Plant Improvements 175,000 500,000 700,000 - - - 1,200,000 Total Water 7,564,600 2,028,600 2,158,800 1,878,300 1,474,300 1,412,500 8,952,500 Wastewater Vehicles & Equipment - Wastewater 240,800 59,600 99,600 118,000 437,400 14,000 728,600 Meter Reading - Radio Read Meters (Split W/WW 50%) 9,500 150,000 200,000 200,000 200,000 200,000 950,000 Tar Ditch Interceptor Upgrade 347,400 - - - - - - Delaware State University Pump Station Upgrades 20,000 - - - - - Brandywine Pump Station Replacement 339,100 - - - - - - Garrison Oak Technical Park - PS & force main 3,149,000 - - - - - Lepore Road Pump Station Replacement - - 50,000 250,000 - - 300,000 Rolling Acres Pump Station Replacement - 52,000 372,000 - - - 424,000 Dover Brook Gardens Pump Station Upgrade 14,400 - - - - - - McKee Road Pump Station Communicator Replmnt 147,200 - - - - - - DelTech Pump Station Replacement - - 52,000 384,000 - - 436,000 Westover Pump Station & Force Main Upgrade 1,299,600 - - - - - - Lakeview Drive Pump Station Replacement 409,200 - - - - - - Sliver Lake Pump Station Replacement - - - 52,000 396,000 - 448,000 Hazlettville Road Interceptor - Impact Fees 202,800 - - - - - - Walker Woods Pump Station Replacement 58,000 - - - 52,000 408,000 460,000 College Road Pump Station Replacement - - - - - 55,000 55,000 Retreat Pump Station Replacement 52,000 360,500 - - - - 360,500 Puncheon Run Pump Station Upgrade/Repair 36,000 - - - - - Buck Drive I & I repair 339,200 - West Dover Connector 924,000 - - - - - Westminster Pump Station Upgrade 18,000 - - - - - Delaware Avenue Sanitary Sewer Extension - 25,000 - - - 25,000 McKee Generator repair 25,000 - - - - - - Location/Pump Station to be Determined Inflow/Infiltration Removal/System Improvements 154,400 875,000 1,196,000 1,250,000 1,250,000 1,250,000 5,821,000 Misc. Sewer System Improvements - 300,000 - - - - 300,000 Total Wastewater $ 7,785,600 $ 1,822,100 $ 1,969,600 $ 2,254,000 $ 2,335,400 $ 1,927,000 $ 10,308,100 Total Water/Wastewater Improvements $ 15,350,200 $ 3,850,700 $ 4,138,900 $ 4,143,300 $ 3,821,200 $ 3,353,500 $ 19,307,600 100

Capital Improvement Plan Revised Proposed Projection Projection Projection Projection 5 Yr Projctd FUNDING SOURCES 2015 2016 2017 2018 2019 2020 Total I & E Fund Budget Balance - Water $ 7,178,100 $ 833,500 $ 617,400 $ 165,850 $ (105,450) $ 27,000 I & E Fund Budget Balance - Wastewater $ 5,677,600 $ 1,027,600 $ 883,000 $ 920,650 $ 673,650 $ 345,000 Transfer from Operating Fund - Water 1,200,000 1,800,000 1,700,000 1,600,000 1,600,000 1,600,000 8,300,000 Transfer from Operating Fund - Wastewater 1,800,000 1,500,000 1,830,400 1,825,600 1,820,800 1,814,800 8,791,600 Transfer from Impact Fee Reserve - Wastewater 1,315,600 165,000 169,600 174,400 179,200 185,200 873,400 Interest Income 40,000 25,000 25,000 25,000 25,000 25,000 125,000 Total Funding Sources $ 4,355,600 $ 3,490,000 $ 3,725,000 $ 3,625,000 $ 3,625,000 $ 3,625,000 $ 18,090,000 Total Sources of Funds (incl. Budget Balances) $ 17,211,300 $ 5,351,100 $ 5,225,400 $ 4,711,500 $ 4,193,200 $ 3,997,000 $ 18,090,000 Water $ 833,500 $ 617,400 $ 165,850 $ (105,450) $ 27,000 $ 220,000 Wastewater $ 1,027,600 $ 883,000 $ 920,650 $ 673,650 $ 345,000 $ 423,500 Total Budget Balances $ 1,861,100 $ 1,500,400 $ 1,086,500 $ 568,200 $ 372,000 $ 643,500 101

Water/Wastewater Fund Projected Debt Service Series 2013 Series 2013 Revenue Total Fiscal Year Series 2000 Series 2009 Series 2010 Series 2011 Revenue Bonds - Total Water Wastewater Total Debt Ending Wastewater Wastewater Water Wastewater Bonds - Water Wastewater Debt Service Debt Service Service 6/30/2016 $ 53,000 $ 347,100 $ 161,300 $ 58,200 $ 383,900 $ 128,600 $ 545,200 $ 586,900 1,132,100 6/30/2017 53,000 347,100 161,300 58,200 380,300 127,400 541,600 585,700 1,127,300 6/30/2018 53,000 347,100 161,300 58,200 380,200 127,400 541,500 585,700 1,127,200 6/30/2019 53,000 347,100 161,300 58,200 383,600 128,600 544,900 586,900 1,131,800 6/30/2020 53,000 347,100 161,300 58,200 379,400 127,100 540,700 585,400 1,126,100 6/30/2021 - 347,100 161,300 58,200 382,400 128,100 543,700 533,400 1,077,100 6/30/2022 - 347,100 161,300 58,200 381,300 127,800 542,600 533,100 1,075,700 6/30/2023 - 347,100 161,300 58,200 380,000 127,400 541,300 532,700 1,074,000 6/30/2024 - 347,100 161,300 58,200 382,200 128,100 543,500 533,400 1,076,900 6/30/2025 - 347,100 161,300 58,200 229,100 76,800 390,400 482,100 872,500 6/30/2026 - 347,100 161,300 58,200 227,900 76,400 389,200 481,700 870,900 6/30/2027 - 347,100 161,300 58,200 226,300 75,800 387,600 481,100 868,700 6/30/2028 - 347,100 161,300 58,200 227,900 76,400 389,200 481,700 870,900 6/30/2029 - 347,100 161,300 58,200 228,700 76,600 390,000 481,900 871,900 6/30/2030 - 347,100 161,300 58,200 228,700 76,600 390,000 481,900 871,900 6/30/2031 - 347,100 80,700 58,200 229,100 76,800 309,800 482,100 791,900 6/30/2032 - 173,600 - 29,100 227,800 76,300 227,800 279,000 506,800 6/30/2033 - - - - 226,900 76,000 226,900 76,000 302,900 6/30/2034 - - - - 225,500 75,600 225,500 75,600 301,100 Total $ 265,000 $ 5,727,200 $ 2,500,200 $ 960,300 $ 5,711,200 $ 1,913,800 $ 8,211,400 $ 8,866,300 $ 17,077,700 102

Reserve Account Projections Revised Proposed Projection Projection Projection Projection 5 Yr Prjctn 2015 2016 2017 2018 2019 2020 Total Contingency Reserve Account - Water (2%) $108,900 $136,500 $137,300 $138,100 $138,900 $139,700 Balance in Account on July 1 $104,700 $104,900 $137,700 $138,700 $139,800 $140,900 Receipts Interest Earned 200 800 1,000 1,100 1,100 1,100 5,100 Appropriations - 32,000 - - - - 32,000 Balance in Account on June 30 $104,900 $137,700 $138,700 $139,800 $140,900 $142,000 Contingency Reserve - Wastewater (2%) $178,400 $178,000 $188,500 $189,400 $190,300 $191,200 Balance in Account on July 1 $189,400 $189,700 $191,100 $192,600 $194,100 $195,600 Receipts Interest Earned 300 1,400 1,500 1,500 1,500 1,500 7,400 Balance in Account on June 30 $189,700 $191,100 $192,600 $194,100 $195,600 $197,100 Impact Fee Reserve - Water (20% of Revenue) $923,300 $1,240,000 $1,246,200 $1,252,400 $1,258,700 $1,265,000 Balance in Account on July 1 $200,200 $200,500 $202,000 $203,500 $205,000 $206,600 Receipts Interest Earned 300 1,500 1,500 1,500 1,600 1,600 7,700 Balance in Account on June 30 $200,500 $202,000 $203,500 $205,000 $206,600 $208,200 Impact Fee Reserve - Wastewater (20% of Rev) $741,400 $745,600 $845,800 $849,700 $853,600 $857,500 Balance in Account on July 1 $2,776,400 $1,463,400 $1,309,500 $1,149,900 $984,200 $812,500 Receipts Interest Earned 2,600 11,100 10,000 8,700 7,500 6,200 43,500 Total Funds Available $2,779,000 $1,474,500 $1,319,500 $1,158,600 $991,700 $818,700 Disbursements Transfer to Capital Improvements 1,315,600 165,000 169,600 174,400 179,200 185,200 873,400 Balance in Account on June 30 $1,463,400 $1,309,500 $1,149,900 $984,200 $812,500 $633,500 Capital Asset Reserve - Water (Min. $500K) Balance in Account on July 1 $508,400 $514,600 $518,500 $522,400 $526,400 $530,400 Receipts Interest Earned 6,200 3,900 3,900 4,000 4,000 4,000 19,800 Balance in Account on June 30 $514,600 $518,500 $522,400 $526,400 $530,400 $534,400 Capital Asset Resrv - Wastewater (Min $500K) Balance in Account on July 1 $507,300 $511,300 $515,200 $519,100 $523,000 $527,000 Receipts Interest Earned 4,000 3,900 3,900 3,900 4,000 4,000 19,700 Balance in Account on June 30 $511,300 $515,200 $519,100 $523,000 $527,000 $531,000 Total All Reserves at June 30 $2,984,400 $2,874,000 $2,726,200 $2,572,500 $2,413,000 $2,246,200 103

ELECTRIC FUND

City of Dover Electric Revenue Fund Financial Projections 2016 – 2020 Budget Meetings May 2015 105

Financial Projections • An informational tool provided to those charged with governance and management of the City. • A planning tool used for setting future goals and objectives to meet the City’s financial requirements. • A tool to insure we are meeting three main objectives. ▫ Positive net income as measured by audited generally accepted accounting principles (GAAP accounting) ▫ Sufficient revenues to cover debt service covenants and ratios as measured by GAAP accounting ▫ Sufficient (positive) cash balances to cover items not included in the income statement as measured by budgetary accounting 106

FY16 – FY20 Key Assumptions • kWh demand for FY16 – FY20 less than 1.0% annual growth • Includes rate increases proposed for FY16 – overall 3% • Includes power cost adjustment (PCA) as follows:  FY18 $.00431  FY19 $.00603  FY20 $.00589 • Includes $10.0 million General Fund Transfer each fiscal year • Includes billed revenues for new services & improvements in the Improvement & Extension Fund to offset cost of the improvements ($1.9 million annually); Funds will be restricted to developer/contractor applications for service; • Forecasted Operating Expenses as follows:  Growth in Division expenses 2016 – 2019 at 3.0% annual  Increased retiree health insurance premiums 5.0%  Fully funding OPEB liability  Reduced annual appropriations for inventory reserve and increased appropriation for bad debt  Power Supply includes cost of Non-Solar Renewable Energy credits as mandated to fulfill the City’s Renewable Portfolio Standard  Reduced transfer to the capital project fund from $3.5 million to $3.0 million in FY19 and FY20 due to lower projected expenses resulting from Units 1 & 2 retirements • No new debt issuance; FY10 bonds paid off in FY16; • Negative cash position projected in FY20 attributed to revenues not covering fixed cost and the potential for another rate review. 107

Net Income Revised Proposed Projected Projected Projected Projected Yr 1 - Yr 5 2015 2016 2017 2018 2019 2020 Total Net Income Revenue from Current Electric Rates $ 76,543,700 $ 75,999,200 $ 76,524,000 $ 76,943,600 $ 77,205,000 $ 77,205,000 $ 383,876,800 Revenue from Base Rate Revenue Adjustments - 2,280,000 2,295,700 2,308,300 2,316,200 2,316,200 11,516,400 Revenue from PCA - - - 3,074,200 4,316,500 4,213,200 11,603,900 Utility Tax 1,258,300 1,281,100 1,289,900 1,347,300 1,372,000 1,370,300 6,660,600 Miscellaneous Receipts 1,202,000 2,827,800 2,832,600 2,837,600 2,842,600 2,847,600 14,188,200 Total Operating Revenue 79,004,000 82,388,100 82,942,200 86,511,000 88,052,300 87,952,300 427,845,900 Power Supply & Production (50,040,700) (49,109,500) (50,245,200) (53,518,200) (54,965,300) (55,072,900) (262,911,100) Operating Expenses (14,133,700) (14,782,300) (15,255,700) (15,714,500) (16,152,900) (16,577,500) (78,482,900) Operating Transfers - Out (General Fund) (10,000,000) (10,000,000) (10,000,000) (10,000,000) (10,000,000) (10,000,000) (50,000,000) Total Operating Expenses (74,174,400) (73,891,800) (75,500,900) (79,232,700) (81,118,200) (81,650,400) (391,394,000) Operating Income 4,829,600 8,496,300 7,441,300 7,278,300 6,934,100 6,301,900 36,451,900 Non-Oper. Rev. - Interest on Operating 36,800 74,600 70,000 64,500 57,300 58,300 324,700 Non-Oper. Rev. - Interest on Reserves 243,200 222,200 201,400 202,900 204,500 206,100 1,037,100 Income Available For Debt Service 5,109,600 8,793,100 7,712,700 7,545,700 7,195,900 6,566,300 37,813,700 Interest on Long-Term Debt (1,131,900) (1,037,000) (918,700) (884,000) (847,500) (815,700) (4,502,900) Cash From Operations 3,977,700 7,756,100 6,794,000 6,661,700 6,348,400 5,750,600 33,310,800 Non Cash Income/Loss & Reserve Transfers Depreciation Expense (5,336,658) (5,533,600) (5,744,400) (5,961,700) (6,120,800) (6,245,700) (29,606,200) Net Income $ (1,358,958) $ 2,222,500 $ 1,049,600 $ 700,000 $ 227,600 $ (495,100) $ 3,704,600 [1] The 2015 Cost of Service and Rate Design Study examines the period FY 2016 through FY 2020. 108

Debt Service Coverage Revised Proposed Projected Projected Projected Projected Yr 1 - Yr 5 2015 2016 2017 2018 2019 2020 Total Debt Service Coverage Income Avail. for Debt Service $ 5,109,600 $ 8,793,100 $ 7,712,700 $ 7,545,700 $ 7,195,900 $ 6,566,300 $ 37,813,700 Total Debt Service $ 3,391,900 $ 3,402,000 $ 1,613,700 $ 1,614,000 $ 1,612,500 $ 1,615,700 $ 9,857,900 Debt Service Coverage Ratio 1.51 2.58 4.78 4.68 4.46 4.06 3.84 Debt Service Coverage Requirement 1.25 1.25 1.25 1.25 1.25 1.25 Debt Service Coverage Requirement Status Met Met Met Met Met Met Debt Service Safety Margin 2.17% 6.52% 7.33% 6.84% 6.32% 5.61% Cash Flow Position Revised Proposed Projected Projected Projected Projected Yr 1 - Yr 5 2015 2016 2017 2018 2019 2020 Total Cash Summary Transfer to I & E Fund $ 4,750,000 $ 5,400,000 $ 5,400,000 $ 5,400,000 $ 4,900,000 $ 4,900,000 $ 26,000,000 Transfer (from)/to Reserves (3,000,000) (3,000,000) - - - - (3,000,000) Reinvestment of Reserve Interest 268,000 248,900 223,200 217,000 210,500 213,200 1,112,800 Debt Service Principal 2,260,000 2,365,000 695,000 730,000 765,000 800,000 5,355,000 Total Cash Budget Requirements 4,278,000 5,013,900 6,318,200 6,347,000 5,875,500 5,913,200 29,467,800 Net Positive/(Negative Cash) $ (300,300) $ 2,742,200 $ 475,800 $ 314,700 $ 472,900 $ (162,600) $ 3,843,000 109

Energy Sales & Power Supply kWh Revised Proposed Projected Projected Projected Projected Yr 1 - Yr 5 2015 2016 2017 2018 2019 2020 Total Energy Sales and Supply Energy Sales - kWh 705,491,500 705,311,100 710,051,100 713,817,100 715,890,500 715,890,500 3,560,960,300 Street & Outdoor Lights - kWh 6,724,400 6,704,200 6,704,200 6,704,200 6,704,200 6,704,200 33,521,000 Total Energy Sales - kWh 712,215,900 712,015,300 716,755,300 720,521,300 722,594,700 722,594,700 3,594,481,300 Sales Variation -1.2% 0.0% 0.7% 0.5% 0.3% 0.0% Line Losses and Unmetered Energy - kWh 29,306,100 29,288,700 30,431,700 28,753,700 29,230,300 29,230,300 146,934,700 Total Energy Requirement - kWh 741,522,000 741,304,000 747,187,000 749,275,000 751,825,000 751,825,000 3,741,416,000 Purchased Power, includes Solar - kWh 722,677,000 717,512,589 723,395,589 725,483,589 728,033,589 728,033,589 3,622,458,943 Purchased Power Variation -1.5% -0.7% 0.8% 0.3% 0.4% 0.0% Generation - kWh 18,845,000 23,791,412 23,791,412 23,791,412 23,791,412 23,791,412 118,957,058 Generation Variation -33.8% 26.2% 0.0% 0.0% 0.0% 0.0% Total Supply (kWh) 741,522,000 741,304,000 747,187,000 749,275,000 751,825,000 751,825,000 3,741,416,000 Sales 95.1% 95.1% 95.0% 95.3% 95.2% 95.2% 95.2% Street Lighting Sales 0.9% 0.9% 0.9% 0.9% 0.9% 0.9% 0.9% Line Losses and Unmetered Energy 4.0% 4.0% 4.1% 3.8% 3.9% 3.9% 3.9% Total Requirements 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% Purchased Power 97.5% 96.8% 96.8% 96.8% 96.8% 96.8% 96.8% Generation 2.5% 3.2% 3.2% 3.2% 3.2% 3.2% 3.2% Total Supply 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% Peak Demand Analysis Power Supply - kWh 741,522,000 741,304,000 747,187,000 749,275,000 751,825,000 751,825,000 3,741,416,000 Energy Sales - kWh 712,215,900 712,015,300 716,755,300 720,521,300 722,594,700 722,594,700 3,594,481,300 System Load Factor 50.6% 51.2% 51.6% 51.2% 51.3% 51.4% Peak Demand - kW 167,152 165,140 165,204 167,149 167,141 167,027 Peak Demand Variation 1.8% -1.2% 0.0% 1.2% 0.0% -0.1% 110

Purchased Power Expense Revised Proposed Projected Projected Projected Projected Yr 1 - Yr 5 2015 2016 2017 2018 2019 2020 Total Purchased Power [1] - kWh - - kWh - - kWh - - kWh - - kWh - - kWh - - kWh - Long Term Energy Supply 741,522,000 741,304,000 747,187,000 749,275,000 751,825,000 751,825,000 3,731,113,000 Annual Variation -2.72% -0.03% 0.79% 0.28% 0.34% 0.00% Total Energy Purchases 741,522,000 741,304,000 747,187,000 749,275,000 751,825,000 751,825,000 3,731,113,000 Purchased Power Expense Power Supply $ 26,035,900 $ 23,402,600 $ 16,164,300 $ 11,155,800 $ 4,956,100 $ - $ 55,678,800 Dover Sun Park - Energy 2,002,700 2,313,900 2,446,700 2,551,500 2,580,200 2,639,700 12,532,000 Dover Sun Park - Solar Recs 375,500 363,400 362,400 373,500 397,800 408,600 1,905,700 Renewable Energy Credits (incl DEMEC) 555,400 673,400 875,300 1,097,700 1,199,000 1,306,500 5,151,900 Regional Greenhouse Gas Initiative - 175,000 225,000 230,000 236,000 242,000 1,108,000 Power Supply Management 996,000 996,000 996,000 996,000 996,000 996,000 4,980,000 PJM Charges - Load 10,076,200 7,966,100 14,944,300 20,954,400 27,067,100 31,597,000 102,528,900 PJM Charges - Trans, ARR, and Fees 4,480,800 7,932,500 7,956,000 8,115,100 8,277,400 8,443,000 40,724,000 Capacity Charges 9,744,100 10,225,100 8,100,500 8,898,000 13,133,900 13,126,700 53,484,200 Generation Fuels 1,873,400 1,167,300 1,190,700 1,214,500 1,238,800 1,263,500 6,074,800 PJM Spot Market Energy Revenue (2,834,600) (1,708,300) (1,742,400) (1,777,300) (1,812,800) (1,849,100) (8,889,900) PJM Credits - Reactive Power Supply (663,700) (360,000) (367,200) (374,500) (382,000) (389,700) (1,873,400) Capacity Credits (8,742,100) (10,472,100) (7,534,000) (6,742,900) (9,953,400) (9,953,400) (44,655,800) Total Purchase Power Expense $ 43,899,600 $ 42,674,900 $ 43,617,600 $ 46,691,800 $ 47,934,100 $ 47,830,800 $ 228,749,200 Purchased Power Cost per MWh [2] $ 59.20 $ 57.57 $ 58.38 $ 62.32 $ 63.76 $ 63.62 $ 61.31 Current Hedge Percentage 79.0% 65.0% 47.0% 37.0% 22.0% 0.0% 111

Net Electric Generation Benefit FY15 FY16 FY17 FY18 FY19 FY20 FY16 thru Revised Proposed Projected Projected Projected Projected FY20 Plant Operations $ 6,369,200 $ 6,434,600 $ 6,627,600 $ 6,826,400 $ 7,031,200 $ 7,242,100 $ 34,161,900 Capacity Credits (8,742,100) (10,472,100) (7,534,000) (6,742,900) (9,953,400) (9,953,400) (44,655,800) PJM Spot Market Energy (Net of Fuel) (961,200) (541,000) (551,700) (562,800) (574,000) (585,600) (2,815,100) PJM Credits (663,700) (360,000) (367,200) (374,500) (382,000) (389,700) (1,873,400) Net Generation - Operations (3,997,800) (4,938,500) (1,825,300) (853,800) (3,878,200) (3,686,600) (15,182,400) Capital Cost 2,739,300 1,655,000 1,537,000 2,783,000 828,000 814,000 7,617,000 Net Generation - Cash Flow $ (1,258,500) $ (3,283,500) $ (288,300) $ 1,929,200 $ (3,050,200) $ (2,872,600) $ (7,565,400) The City receives PJM capacity credits for our generating plant capacity. This revenue off-sets PJM's capacity charges which are required to serve approximately 180 MWH of our load plus reserves. If we did not have the ability to generate, we would loose the capacity credit but still have to pay the capacity charges to PJM for our load requirements. Capacity Charges $ 9,744,100 $ 10,225,100 $ 8,100,500 $ 8,898,000 $ 13,133,900 $ 13,126,700 $ 53,484,200 $15.0 Costs $10.0 $5.0 Million Dollars $0.0 Cap acity Credits Cap acity Charges ($5.0) Net Generation - Cash Flow ($10.0) Benefits ($15.0) ($20.0) FY15 FY16 FY17 FY18 FY19 FY20 112

Projected Operating Revenues 113

Projected Operating Expenses Revised Proposed Projected Projected Projected Projected Yr 1 - Yr 5 2015 2016 2017 2018 2019 2020 Total Operating Expense General Administration (Indirect service) $ 3,588,200 $ 3,773,300 $ 3,886,500 $ 4,003,100 $ 4,123,200 $ 4,246,900 $ 20,033,000 Power Plant Operations 6,141,100 6,434,600 6,627,600 6,826,400 7,031,200 7,242,100 34,161,900 Purchased Power 43,899,600 42,674,900 43,617,600 46,691,800 47,934,100 47,830,800 228,749,200 Legal & Consulting Fees for RFP's/Contracts 246,800 - - - - - - Transmission/Distribution 3,954,900 4,075,700 4,198,000 4,323,900 4,453,600 4,587,200 21,638,400 Engineering 1,379,300 1,337,100 1,377,200 1,418,500 1,461,100 1,504,900 7,098,800 System Operators 696,500 681,600 702,000 723,100 744,800 767,100 3,618,600 Metering 357,200 361,200 372,000 383,200 394,700 406,500 1,917,600 Electric Administration 632,400 841,700 867,000 893,000 919,800 947,400 4,468,900 Non Capital Expenses in Capital Fund 75,000 150,000 150,000 150,000 150,000 150,000 750,000 Utility Tax 1,258,300 1,281,100 1,289,900 1,348,800 1,374,100 1,372,400 6,666,300 Depreciation 5,336,700 5,533,600 5,744,400 5,961,700 6,120,800 6,245,700 29,606,200 Interest on Deposits 20,000 20,500 20,500 20,500 20,500 20,500 102,500 Allowance for Bad Debts 200,000 200,000 225,000 225,000 225,000 225,000 1,100,000 Retiree Health Care 513,300 537,800 564,700 592,900 622,500 653,600 2,971,500 OPEB Trust - Full funding amtz pymt 1,009,800 1,030,000 1,050,600 1,071,600 1,093,000 1,114,900 5,360,100 Other Employment Expenses 24,000 72,000 74,200 76,400 78,700 81,100 382,400 Green Energy Expense 128,000 128,000 131,000 134,000 137,000 140,000 670,000 Inventory Write-offs - - 50,000 50,000 50,000 50,000 200,000 Comp Ab/OPEB/Pens NPO/NPA 50,000 50,000 50,000 50,000 50,000 50,000 250,000 Bank Fees - 242,300 247,100 252,000 257,000 262,100 1,260,500 Total Operating Expense $ 69,511,100 $ 69,425,400 $ 71,245,300 $ 75,195,900 $ 77,241,100 $ 77,898,200 $ 371,005,900 Oper Expense less Depr. $ 64,174,400 $ 63,891,800 $ 65,500,900 $ 69,234,200 $ 71,120,300 $ 71,652,500 $ 341,399,700 Oper Expense less Depr.& Power Supply/Generation $ 14,133,700 $ 14,782,300 $ 15,255,700 $ 15,716,000 $ 16,155,000 $ 16,579,600 $ 78,488,600 114

Improvement & Extension Fund Revised Proposed Projected Projected Projected Projected Yr 1 - Yr 5 2015 2016 2017 2018 2019 2020 Total Improvement & Extension (I&E) Fund Balance in Account on July 1 $ 5,942,500 $ 3,623,600 $ 2,985,200 $ 1,963,500 $ 904,600 $ 1,482,600 Receipts Interest Earned 24,800 26,700 21,800 14,100 6,000 7,100 75,700 State Reimbursements & Developer Contributions 250,000 1,900,000 1,900,000 1,900,000 1,900,000 1,900,000 9,500,000 Appropriations From Operations 4,750,000 3,500,000 3,500,000 3,500,000 3,000,000 3,000,000 16,500,000 Total Funds Available $ 10,967,300 $ 9,050,300 $ 8,407,000 $ 7,377,600 $ 5,810,600 $ 6,389,700 $ 37,035,200 Disbursements Capital Improvements 7,343,700 6,065,100 6,443,500 6,473,000 4,328,000 4,309,000 27,618,600 Balance in Account on June 30 $ 3,623,600 $ 2,985,200 $ 1,963,500 $ 904,600 $ 1,482,600 $ 2,080,700 115

Capital Investment Plan 2015 – 2019 Revised Projected Projected Projected Projected Projected Yr 1 - Yr 5 CAPITAL PROJECTS 2015 2016 2017 2018 2019 2020 Total Electric Engineering Projects Substation Battery Replacement $ 24,500 $ - $ - $ - $ - $ - $ - Capitol Park - Underground 27,500 - - - - - - Richardson Circle 400 - - - - - - Chandelle Airport URD 52,900 - - - - - - Townpoint Distribution Upgrades 250,000 350,000 350,000 350,000 - - 1,050,000 Distribution System Upgrades - Unidentified - - - 300,000 600,000 600,000 1,500,000 Oak Grove Trailer Park Distribution Upgrade - 78,500 - - - - 78,500 Lakeland Laurel Point - Distribution Upgrade - 63,000 - - - - 63,000 Rt 8/ Mifflin Road Crossing - Distribution Upgrade - 51,500 - - - - 51,500 Route 8/Taps - Distribution Upgrade - 38,500 - - - - 38,500 Townsend Brothers - Distribution Upgrade - 14,500 - - - - 14,500 Persimmon Tree Apartments - Distribution Upgrade - 62,000 - - - - 62,000 North Street OH to UG (Governors to Queen) - 100,000 - - - - 100,000 Dover East Estates - Distribution Upgrade - 130,000 - - - - 130,000 Lighting Project and Rehabilitation 50,000 67,000 55,000 60,000 65,000 70,000 317,000 Satellite Syncrhonized Substation Clocks - 30,000 - - - - 30,000 Horsepond Road Substation Reliability Upgrade 468,700 - - - - - - Horsepond Road URD - Distribution Feeders - 67,000 - - - - 67,000 Transmission Line Maintenance Program - 75,000 80,000 85,000 90,000 95,000 425,000 McKee Run & State College Road Feeder replacements 50,000 - - - - - - GOTP Transmission Line Relocation 550,000 - - - - - - Distribution Capacitors - Overhead - 25,000 26,500 27,500 28,500 30,000 137,500 Distribution Capacitors - Underground - 25,000 26,500 27,500 28,500 30,000 137,500 Frazier Substation Reliability Upgrade (900 circuits) - 10,000 10,000 10,000 10,000 10,000 50,000 Horsepond SS to Cartanza 69kv Rebuild 75,000 255,500 - - - - 255,500 69kv Substation Cable Replacement North Street 85,000 50,000 480,700 - - - 530,700 General Scott Switchgear 1,137,600 - - - - - - Dover Air Force Base Substation Relocation - 30,000 500,000 - - - 530,000 System Automation - - 150,000 150,000 150,000 150,000 600,000 Vehicles, Trucks, & Equipment 28,600 - 302,800 10,000 28,000 10,000 350,800 Subtotal Electric Engineering Division $ 2,800,200 $ 1,522,500 $ 1,981,500 $ 1,020,000 $ 1,000,000 $ 995,000 $ 6,519,000 Electric Transmission & Distribution Projects - New Developments - UG Transformers $ 87,400 $ 1,872,000 $ 2,000,000 $ 2,000,000 $ 2,000,000 $ 2,000,000 $ 9,872,000 New Developments - UG Conductors/Devices 105,100 450,000 500,000 500,000 500,000 500,000 2,450,000 DNREC R & R Metering - 41,000 - - - - 41,000 West Dover Connector 250,000 - - - - - - Meadows at Jefferson Terrace 15,400 - - - - - - Chestnut Grove Development 299,000 - - - - - Garrison Oak Technical Park 184,000 - - - - - Uzin Utz Manufacturing 8,000 - - - - - 116

Capital Investment Plan 2015 – 2019 continued Revised Projected Projected Projected Projected Projected Yr 1 - Yr 5 CAPITAL PROJECTS 2015 2016 2017 2018 2019 2020 Total Electric Transmission & Distribution Projects - Playtex/Energizer System Upgrades 200,000 - - - - - Clearview Meadows 81,200 - - - - - Dover Downs Tower 51,600 - - - - - Leander Lakes 73,000 - - - - - Eden Hill Lights 17,000 - - - - - Family Dollar Store 7,500 - - - - - - Public Works Wetland Project 78,000 78,000 Washington Street Lights 40,000 40,000 NBR Properties, LLC 19,000 19,000 Meter Replacements & System upgrades 150,000 - - - - - Vehicles, Trucks, & Equipment 275,000 387,600 425,000 170,000 - - 982,600 Subtotal Electric Transmission Division $ 1,804,200 $ 2,887,600 $ 2,925,000 $ 2,670,000 $ 2,500,000 $ 2,500,000 $ 13,482,600 Electric Generation Projects McKee Run & VanSant Preservation of Structures $ 135,800 $ 215,000 $ 261,000 $ - $ 200,000 $ - $ 676,000 McKee Run Building Equipment Replacements - 42,000 59,000 99,000 27,000 66,000 293,000 McKee Run High Energy Piping 26,500 - - - - - - Unit 3 Software & Compupter Upgrades - CEMS - 44,500 - - - - 44,500 Unit 3 - Stack Repairs - 485,000 - - - - 485,000 Unit 3 Boiler Systems 138,000 42,000 382,000 - 299,000 80,000 803,000 Unit 3 Auxillary System Components 89,000 135,000 128,000 261,000 277,000 213,000 1,014,000 Unit 3 Turbine Outage - Inspections & Repairs 151,800 - - 438,000 25,000 - 463,000 Unit 3 Cooling Water Line Replacement/Repairs - 469,000 - - - - 469,000 Unit 3 Cooling Tower Life Extension 1,091,200 - - - - - - Units 1 & 2 Component Repairs - - 21,000 - - - 21,000 Units 1, 2 & 3 Hydrogen Purity Analyzers - - 85,000 - - - 85,000 VanSant Capacity Increase 901,900 - - - - - - VanSant Software & Compupter Upgrades - CEMS - 44,500 - - - - 44,500 VanSant Major Overhaul & Inspection - - 400,000 1,948,000 - 150,000 2,498,000 VanSant Component replacements - 21,000 89,000 - - 305,000 415,000 Metering System Upgrades 90,000 - - - - - - Safety & Compliance Improvements 115,100 157,000 112,000 37,000 - - 306,000 Subtotal Electric Generation Division $ 2,739,300 $ 1,655,000 $ 1,537,000 $ 2,783,000 $ 828,000 $ 814,000 $ 7,617,000 Total Electric Improvements $ 7,343,700 $ 6,065,100 $ 6,443,500 $ 6,473,000 $ 4,328,000 $ 4,309,000 $ 27,618,600 117

Projected Debt Service Electric Revenue Fund Fiscal Year 2008 Revenue Bonds 2010 Revenue Bonds Total Debt 6/30/2016 475,000 942,454 1,890,000 94,500 3,401,954 6/30/2017 695,000 918,704 - - 1,613,704 6/30/2018 730,000 883,954 - - 1,613,954 6/30/2019 765,000 847,454 - - 1,612,454 6/30/2020 800,000 815,706 - - 1,615,706 6/30/2021 840,000 781,706 - - 1,621,706 6/30/2022 880,000 746,006 - - 1,626,006 6/30/2023 925,000 707,506 - - 1,632,506 6/30/2024 970,000 665,881 - - 1,635,881 6/30/2025 1,015,000 622,231 - - 1,637,231 6/30/2026 1,065,000 576,555 - - 1,641,555 6/30/2027 1,120,000 527,300 - - 1,647,300 6/30/2028 1,175,000 475,500 - - 1,650,500 6/30/2029 1,230,000 416,750 - - 1,646,750 6/30/2030 1,290,000 355,250 - - 1,645,250 6/30/2031 1,355,000 290,750 - - 1,645,750 6/30/2032 1,420,000 223,000 - - 1,643,000 6/30/2033 1,485,000 152,000 - - 1,637,000 6/30/2034 1,555,000 77,750 - - 1,632,750 Total $ 19,790,000 $ 11,026,457 $ 1,890,000 $ 94,500 $ 32,800,957 118

FY16 – FY20 Reserve Account Projections Revised Proposed Projected Projected Projected Projected Yr 1 - Yr 5 2015 2016 2017 2018 2019 2020 Total Depreciation Reserve Account (Policy $10 mil) Balance in Account on July 1 $ 9,915,100 $ 9,990,500 $ 10,116,400 $ 10,193,300 $ 10,270,800 $ 10,348,900 Receipts Interest Earned 75,400 75,900 76,900 77,500 78,100 78,700 387,100 Total Funds Available $ 9,990,500 $ 10,066,400 $ 10,193,300 $ 10,270,800 $ 10,348,900 $ 10,427,600 Disbursements Transfer to Reserves (from Reserves) - (50,000) - - - - (50,000) Balance in Account on June 30 $ 9,990,500 $ 10,116,400 $ 10,193,300 $ 10,270,800 $ 10,348,900 $ 10,427,600 Future Capacity Account (Policy $10 mil) Balance in Account on July 1 $ 10,064,400 $ 10,140,900 $ 10,168,000 $ 10,245,300 $ 10,323,200 $ 10,401,700 Receipts Interest Earned 76,500 77,100 77,300 77,900 78,500 79,100 389,900 Total Funds Available $ 10,140,900 $ 10,218,000 $ 10,245,300 $ 10,323,200 $ 10,401,700 $ 10,480,800 Disbursements Transfer to Reserves (from Reserves) - 50,000 - - - - 50,000 Balance in Account on June 30 $ 10,140,900 $ 10,168,000 $ 10,245,300 $ 10,323,200 $ 10,401,700 $ 10,480,800 Insurance Stabilization Account (Policy min $750K) Balance in Account on July 1 $ 737,500 $ 743,100 $ 758,700 $ 764,500 $ 770,300 $ 776,200 Receipts Interest Earned 5,600 5,600 5,800 5,800 5,900 5,900 29,000 Appropriations - 10,000 - - - - 10,000 Balance in Account on June 30 $ 743,100 $ 758,700 $ 764,500 $ 770,300 $ 776,200 $ 782,100 Rate Stabilization Account Balance in Account on July 1 $ 10,465,800 $ 7,545,300 $ 4,602,600 $ 4,637,600 $ 4,672,800 $ 4,708,300 Receipts Interest Earned 79,500 57,300 35,000 35,200 35,500 35,800 198,800 Total Funds Available $ 10,545,300 $ 7,602,600 $ 4,637,600 $ 4,672,800 $ 4,708,300 $ 4,744,100 Disbursements Transfer to (from) Operations 3,000,000 3,000,000 - - - - 3,000,000 Balance in Account on June 30 $ 7,545,300 $ 4,602,600 $ 4,637,600 $ 4,672,800 $ 4,708,300 $ 4,744,100 Reserve Requirement - (< 10 % of Purchased Power) 17.19% 10.79% 10.63% 10.01% 9.82% 9.92% Reserve Requirement Status Exceeds 10% Exceeds 10% Exceeds 10% Exceeds 10% OK OK Contingency Reserve Account Balance in Account on July 1 $ 819,100 $ 825,300 $ 844,600 $ 851,000 $ 857,500 $ 864,000 Receipts Interest Earned 6,200 6,300 6,400 6,500 6,500 6,600 32,300 Appropriations - 13,000 - - - - 13,000 Balance in Account on June 30 $ 825,300 $ 844,600 $ 851,000 $ 857,500 $ 864,000 $ 870,600 Reserve Requirement - (Min. 1% of Total Revenue) 790,040 823,881 829,422 865,110 880,523 879,523 Reserve Requirement Status OK OK OK Less Than 1% Less Than 1% Less Than 1% Total All Reserves at June 30 $ 29,245,100 $ 26,490,300 $ 26,691,700 $ 26,894,600 $ 27,099,100 $ 30,274,083 119

CAPITAL INVESTMENTS PLAN  REVENUE SOURCES & FUNDS  TOTAL CITY SUMMARY  GENERAL  WATER/WASTEWATER  ELECTRIC  VEHICLE REPLACEMENTS

City of Dover, Delaware FY 2016 Capital Investment Plan FY 16 thru FY 20 FUNDING SOURCE SUMMARY Source FY 16 FY 17 FY 18 FY 19 FY 20 Total Community Transportation Fund 30,000 250,000 280,000 Developer Contribution 1,900,000 1,900,000 Electric Revenue 4,366,900 6,442,900 6,438,000 4,631,000 4,249,000 26,127,800 General Fund 2,885,200 2,536,800 2,600,900 2,789,200 2,260,600 13,072,700 Impact Fee Reserve 165,000 244,000 174,400 179,200 185,200 947,800 Other 20,300 2,067,000 2,067,000 2,067,000 6,221,300 Parkland Reserve Fund 40,000 10,000 150,000 200,000 State Grant 80,000 43,000 280,000 403,000 Water/Wastewater Fund 3,685,700 3,894,900 3,968,900 3,642,000 3,168,300 18,359,800 GRAND TOTAL 13,023,100 15,335,600 15,302,200 13,738,400 10,113,100 67,512,400 Tuesday, May 12, 2015 122

City of Dover, Delaware FY 2016 Capital Investment Plan FY 16 thru FY 20 DEPARTMENT SUMMARY Department FY 16 FY 17 FY 18 FY 19 FY 20 Total City Manager 32,800 32,800 Code Enforcement 23,800 23,800 Electric Engineering 1,724,300 1,958,500 985,000 1,303,000 935,000 6,905,800 Electric T & D 2,887,600 2,947,400 2,670,000 2,500,000 2,500,000 13,505,000 Facilities Management 20,000 22,000 24,200 26,600 92,800 Fire/Robbins Hose 238,500 319,200 319,200 409,200 1,286,100 Fleet Maintenance 84,000 35,000 38,000 60,000 217,000 Life Safety (Fire Marshal) 55,700 29,500 17,500 102,700 Parks and Recreation 190,000 96,000 630,000 250,000 1,166,000 Permtting and Inspections 16,000 16,000 Planning 16,000 16,000 Police 360,900 217,100 240,600 242,300 339,700 1,400,600 Power Plant 1,655,000 1,537,000 2,783,000 828,000 814,000 7,617,000 Public Works - Grounds 201,100 64,000 59,800 188,000 153,000 665,900 Public Works - Sanitation 449,000 447,000 463,000 315,000 321,800 1,995,800 Public Works - Streets 1,483,500 3,366,000 3,441,000 3,417,500 1,419,500 13,127,500 Public Works Admin 34,000 34,000 W/WW Engineering 10,500 11,000 11,500 14,000 47,000 Wastewater Management 1,822,100 1,969,600 2,254,000 2,335,400 1,927,000 10,308,100 Water Management 2,028,600 2,105,800 1,852,300 1,424,300 1,386,500 8,797,500 Water Treatment Plant 53,000 26,000 50,000 26,000 155,000 TOTAL 13,023,100 15,335,600 15,302,200 13,738,400 10,113,100 67,512,400 123 Tuesday, May 12, 2015

GENERAL FUND 124

City of Dover, Delaware FY 2016 Capital Investment Plan FY 16 thru FY 20 FUNDING SOURCE SUMMARY Source FY 16 FY 17 FY 18 FY 19 FY 20 Total Community Transportation Fund 30,000 250,000 280,000 General Fund 1,703,400 1,359,200 1,412,200 1,711,700 1,157,500 7,344,000 Other 2,067,000 2,067,000 2,067,000 6,201,000 Parkland Reserve Fund 40,000 10,000 150,000 200,000 State Grant 80,000 43,000 280,000 403,000 GRAND TOTAL 1,703,400 3,576,200 3,532,200 4,208,700 1,407,500 14,428,000 Monday, May 11, 2015 125

City of Dover, Delaware FY 2016 Capital Investment Plan FY 16 thru FY 20 PROJECTS BY DEPARTMENT Department Project# Priority FY 16 FY 17 FY 18 FY 19 FY 20 Total Fire/Robbins Hose Annual Contribution to Robbins Hose FR1400 1 238,500 319,200 319,200 409,200 1,286,100 Fire/Robbins Hose Total 238,500 319,200 319,200 409,200 1,286,100 Parks and Recreation Schutte Park Land Improvements PR1602 1 190,000 190,000 Park and Playground Improvement Program PR1701 1 66,000 66,000 Splash Pad PR1702 1 20,000 280,000 300,000 Skate Parks PR1703 3 10,000 300,000 310,000 Silver Lake Revitalization Project PR1803 3 50,000 250,000 300,000 Parks and Recreation Total 190,000 96,000 630,000 250,000 1,166,000 Police Camera Monitoring Station PD1601 1 19,900 19,900 Police Total 19,900 19,900 Public Works - Streets Street, Concrete and Alley Program ST1601 1 1,000,000 1,000,000 1,050,000 1,102,500 1,157,500 5,310,000 Old PW2 Site Improvements ST1602 1 385,000 2,067,000 2,067,000 2,067,000 6,586,000 Replacement of Valve at Silver Lake Dam ST1603 1 60,000 60,000 Public Works - Streets Total 1,445,000 3,067,000 3,117,000 3,169,500 1,157,500 11,956,000 GRAND TOTAL 1,703,400 3,576,200 3,532,200 4,208,700 1,407,500 14,428,000 126 Monday, May 11, 2015

FY 2016 Capital Investment Plan FY 16 thru FY 20 Department Fire/Robbins Hose City of Dover, Delaware Contact Fire Chief Type Improvement Project # FR1400 Useful Life 15-20 years Project Name Annual Contribution to Robbins Hose Category General New Project: No Account Number: Priority 1 Time-Line: Status Active Total Project Cost: $2,969,636 Description This contribution covers payments to the Robbins Hose Company to cover the Major Fire Apparatus Replacement Plan. Justification The Major Fire Apparatus Replacement Plan ensures loan payments for replacement according to a schedule which guarantees equipment will not be outdated and unserviceable. This plan is based on replacing one of the Company's five engines and one rescue vehicle every three years which would put the average replacement age at 18 years. The two ladder trucks would be replaced every 15 years depending on condition and current needs. This schedule would reduce overall maintenance costs because fire apparatus would be replaced before major problems occur. By providing the Robbins Hose Company with the needed payments for the Major Fire Apparatus Replacement Plan, the Robbins Hose Company will be enabled to pay for a $2.5 million door rehabilitation of the Company Headquarters on Governors Avenue. This renovation is designed to handle 25 years of growth of the company and would preclude any need for an additional fire station in Dover. The Robbins Hose Company will also cover costs associated with miscellaneous apparatus and equipment such as command units, utility vehicles, and large hose replacement. CONSEQUENCES OF DELAYING OR ELIMINATING THIS PROJECT result in increased maintenance costs; possibility of not meeting ISO requirements and NFPA standards . Prior Expenditures FY 16 FY 17 FY 18 FY 19 FY 20 Total 1,683,536 Equip/Vehicle/Furnishings 238,500 319,200 319,200 409,200 1,286,100 Total Total 238,500 319,200 319,200 409,200 1,286,100 Prior Funding Sources FY 16 FY 17 FY 18 FY 19 FY 20 Total 1,683,536 General Fund 238,500 319,200 319,200 409,200 1,286,100 Total Total 238,500 319,200 319,200 409,200 1,286,100 Budget Impact/Other Monday, May 11, 2015 127

FY 2016 Capital Investment Plan FY 16 thru FY 20 Department Parks and Recreation City of Dover, Delaware Contact Public Works Director Type Improvement Project # PR1602 Useful Life 50 years Project Name Schutte Park Land Improvements Category General New Project: No Account Number: TBD Priority 1 Time-Line: FY-16 Status Active Total Project Cost: $190,000 Description This project will include a boundary and topographical survey of Schutte Park and a plan to develop multipurpose fields on the lands on the west side of the park and to complete the multipurpose pathway around the park’s perimeter. Once plans are complete, the improvements will be constructed in FY 16. Justification Currently, the Schutte Park addition is unusable. There is constant demand for field space, and we have 14 acres of unusable space. Expenditures FY 16 FY 17 FY 18 FY 19 FY 20 Total Construction/Maintenance 190,000 190,000 Total 190,000 190,000 Funding Sources FY 16 FY 17 FY 18 FY 19 FY 20 Total Community Transportation 30,000 30,000 Fund General Fund 40,000 40,000 Parkland Reserve Fund 40,000 40,000 State Grant 80,000 80,000 Total 190,000 190,000 Budget Impact/Other Monday, May 11, 2015 128

FY 2016 Capital Investment Plan FY 16 thru FY 20 Department Parks and Recreation City of Dover, Delaware Contact Public Works Director Type Improvement Project # PR1701 Useful Life 10-15 years Project Name Park and Playground Improvement Program Category General New Project: No Account Number: Priority 1 Time-Line: FY17-FY20 Status Active Total Project Cost: $66,000 Description This project provides for a regular replacement of playground equipment throughout the park system. It could also potentially include installation of playground equipment in parks without equipment. This is important to ensure that equipment is replaced as old equipment deteriorates and becomes less safe. All newly installed equipment will meet the standards of the Consumer Product Safety Commission. Justification As equipment ages it deteriorates and can become unsightly and/or unsafe. Replacement of dated equipment is important to ensure that our parks meet the needs of the population and provides a safe play environment. Expenditures FY 16 FY 17 FY 18 FY 19 FY 20 Total Construction/Maintenance 66,000 66,000 Total 66,000 66,000 Funding Sources FY 16 FY 17 FY 18 FY 19 FY 20 Total General Fund 33,000 33,000 State Grant 33,000 33,000 Total 66,000 66,000 Budget Impact/Other Monday, May 11, 2015 129

FY 2016 Capital Investment Plan FY 16 thru FY 20 Department Parks and Recreation City of Dover, Delaware Contact Public Works Director Type Improvement Project # PR1702 Useful Life 10-15 years Project Name Splash Pad Category General New Project: No Account Number: TBD Priority 1 Time-Line: FY17-FY18 Status Active Total Project Cost: $300,000 Description This project will construct a ground-level splash pad in a City Park. Consequences of delaying or eliminating this project include; not meeting the needs of our residents who depend on Silver Lake for outdoor recreation. Justification This project would improve the quality of life for families in Dover. It would be an enhancement to our summer outdoor camp and sport activities and provide outdoor water activities during the summer months. Expenditures FY 16 FY 17 FY 18 FY 19 FY 20 Total Planning/Design 20,000 20,000 Construction/Maintenance 280,000 280,000 Total 20,000 280,000 300,000 Funding Sources FY 16 FY 17 FY 18 FY 19 FY 20 Total General Fund 10,000 10,000 Parkland Reserve Fund 150,000 150,000 State Grant 10,000 130,000 140,000 Total 20,000 280,000 300,000 Budget Impact/Other Increased Water Usage Budget Items FY 16 FY 17 FY 18 FY 19 FY 20 Total Other (Insurance, Utilities) 19,000 20,000 39,000 Total 19,000 20,000 39,000 Monday, May 11, 2015 130

FY 2016 Capital Investment Plan FY 16 thru FY 20 Department Parks and Recreation City of Dover, Delaware Contact Public Works Director Type Improvement Project # PR1703 Useful Life 10-15 years Project Name Skate Parks Category General New Project: No Account Number: TBD Priority 3 Time-Line: FY17-FY18 Status Active Total Project Cost: $310,000 Description This project will construct a skating area in a City Park. Consequences of delaying or eliminating this project will result in the continual lack of meeting the needs of the youth population, more destruction and problems with business property. Justification Many youth and their parents have approached the City to build a skateboard park. Area business owners have complained about skateboarders damaging their property. This park would give the youth a designated area to use their skateboards. In addition, the City will work with the State Park Committee and Kent County Levy Court to develop a skate park in Fiscal 2018. Expenditures FY 16 FY 17 FY 18 FY 19 FY 20 Total Planning/Design 10,000 10,000 Construction/Maintenance 300,000 300,000 Total 10,000 300,000 310,000 Funding Sources FY 16 FY 17 FY 18 FY 19 FY 20 Total General Fund 150,000 150,000 Parkland Reserve Fund 10,000 10,000 State Grant 150,000 150,000 Total 10,000 300,000 310,000 Budget Impact/Other Monday, May 11, 2015 131

FY 2016 Capital Investment Plan FY 16 thru FY 20 Department Parks and Recreation City of Dover, Delaware Contact Public Works Director Type Improvement Project # PR1803 Useful Life 10-15 years Project Name Silver Lake Revitalization Project Category General New Project: No Account Number: Priority 3 Time-Line: FY18-FY20 Status Active Total Project Cost: $300,000 Description The proposed project will remove all the old pavement and parking areas and construct a new central parking lot and access to the boat ramp area as well as access from Kings Highway. The existing pavement condition is in poor repair, and the parking pods create a public perception problem. This project will plant trees, flowers and shrubs below the Silver Lake dam to Court Street, along the St. Jones River in order to improve water quality and protect the stream bank. This will be a multi-year project. The department continues to receive complaints regarding the parking pods, the further deterioration of the existing pavement sections and parking areas, lack of stormwater management practices, bank erosion related to stormwater runoff and poor lighting. Justification Currently there are no stormwater management practices being implemented at this site and the location adjacent to the St. Jones River causes direct stormwater discharge to an environmentally sensitive area. The proposed reconstruction and relocation of the loaded parking lot will allow for best management practices regarding stormwater management to be implemented at this site. Expenditures FY 16 FY 17 FY 18 FY 19 FY 20 Total Planning/Design 50,000 50,000 Miscellaneous 250,000 250,000 Total 50,000 250,000 300,000 Funding Sources FY 16 FY 17 FY 18 FY 19 FY 20 Total Community Transportation 250,000 250,000 Fund General Fund 50,000 50,000 Total 50,000 250,000 300,000 Budget Impact/Other Monday, May 11, 2015 132

FY 2016 Capital Investment Plan FY 16 thru FY 20 Department Police City of Dover, Delaware Contact Capt Stump Type Improvement Project # PD1601 Useful Life 10-15 years Project Name Camera Monitoring Station Category General New Project: Yes Account Number: 147-1700-541.40-31 Priority 1 Time-Line: Jun 2015-Dec 2015 Status Active Total Project Cost: $19,900 Description Brief History: In 2010, the City began to place emphasis on having viewable access of the downtown area to increase security for the residents living and working there because they have been experiencing higher levels of criminal activity. As a result, five cameras were purchased and installed in the City and were funded in the Mayor's budget. The cameras turned out to be a good investment and so the program grew larger as the interest in the program grew and the value of having the cameras in place is realized, so additional cameras were added to the network. This year the City is purchasing an additional 12 cameras and also enlarging the network by adding connectivity with other existing cameras in the area that are owned by other agencies, businesses, and schools. By the end of FY15, there will be a total of 71 cameras accessible in the network, 47 of which are owned by the City and 24 that are not owned by the City. As the number of cameras in the City continues to increase, the Police Department is finding it increasingly difficult to monitor the real time footage of all the cameras in operation. The department currently has two 48" monitors that cycles views of all the cameras regularly, but the juxtaposition of those screens relative to the Police Dispatcher's workstations does not allow for very contiguous monitoring. As a result, the Police Department would like to expand the dispatch area into an adjacent common area to create a separate workstation that will be used to monitor the footage from all of the cameras. Justification There is a lot of value in monitoring the footage of the cameras. On several occasions, Police Dispatchers have been able to get Police Officers to crime scenes in progress and the ciminals off the street and resolve dangerous situations more quickly. In addition, reviewing camera footage in areas where crimes were committed has helped in solving crimes and arresting those responsible. Having the separate worksation would make viewing of all the cameras in the system easier and further enhance the Police Department's crime solving abilities as well as improve the sense of security for individuals living in those areas of the City. Expenditures FY 16 FY 17 FY 18 FY 19 FY 20 Total Construction/Maintenance 19,900 19,900 Total 19,900 19,900 Funding Sources FY 16 FY 17 FY 18 FY 19 FY 20 Total General Fund 19,900 19,900 Total 19,900 19,900 Budget Impact/Other The long term investment in this project has proved to be fruitful in terms of crime solving, deterrence, and increasing the sense of public safety in the areas covered by these cameras. In order for the program to continue to provide positive results, better monitoring methods for the cameras needs to be developed. The best way to keep the system active and useful is to provide a separate monitoring station that is accesssible to more personnel for better and continuous viewing. Monday, May 11, 2015 133

FY 2016 Capital Investment Plan FY 16 thru FY 20 Department Public Works - Streets City of Dover, Delaware Contact Public Works Director Type Improvement Project # ST1601 Useful Life 20-25 years Project Name Street, Concrete and Alley Program Category General New Project: No Account Number: 147-1800-554.40-31 Priority 1 Time-Line: FY16-FY18 Status Active Total Project Cost: $5,310,000 Description This project will rehabilitate approximately three to five percent (3-5%) of the street and alley network each year. The estimated capital maintenance costs are $33.7 million over a 20-year planning horizon in Fiscal Year 2005 dollars. This estimate is based on the needs survey conducted by Public Services in Fiscal Year 2004. Continuous maintenance on these assets will prevent more costly reconstruction in the future. This project combines the former Street Resurfacing Program, the Alley Program and the Barrier Free Access Ramp Program. Locations will be determined by the priority listing and by potential legislator contributions. Additionally, this program replaces and rehabilitates deteriorated sidewalks and curbs throughout the City using in-house labor and private contractors. This is in accordance with the ADA. Delaying or eliminated the project will result in continued complaints and insurance claims from citizens and visitors. In addition, further deterioration of the sidewalk network will occur. Justification The program identifies maintenance costs for the 84.79 miles of streets and 15.24 miles of alleys as of June 30, 2010. Replacement of deteriorated curbs, gutters, and sidewalks provides improved use, drainage, and the appearance of the pavement section. The Street and Alley Program schedule is driven by funding and road ratings. Total street mileage is growing as more roads and alleys are dedicated for public maintenance due to growth. Additionally, this program promotes the interconnection of the sidewalk network to conform to ISTEA (Intermodal Surface Transportation Efficiency Act) and rehabilitates sidewalks that have root damage from City street trees. This program also facilitates compliance with the Americans with Disabilities Act as it relates to the pedestrian network as well as improving localized drainage issues. Expenditures FY 16 FY 17 FY 18 FY 19 FY 20 Total Construction/Maintenance 1,000,000 1,000,000 1,050,000 1,102,500 1,157,500 5,310,000 Total 1,000,000 1,000,000 1,050,000 1,102,500 1,157,500 5,310,000 Funding Sources FY 16 FY 17 FY 18 FY 19 FY 20 Total General Fund 1,000,000 1,000,000 1,050,000 1,102,500 1,157,500 5,310,000 Total 1,000,000 1,000,000 1,050,000 1,102,500 1,157,500 5,310,000 Budget Impact/Other Monday, May 11, 2015 134

FY 2016 Capital Investment Plan FY 16 thru FY 20 Department Public Works - Streets City of Dover, Delaware Contact Public Works Director Type Improvement Project # ST1602 Useful Life 90+ years Project Name Old PW2 Site Improvements Category General New Project: No Account Number: 147-1800-554.40-31 Priority 1 Time-Line: FY16-FY19 Status Active Total Project Cost: $6,586,000 Description Due to the environmental concerns, the PW 2 site will be redeveloped to increase stormwater quality entering Silver Lake. The improvements include relocating the greenhouse, grounds office, equipment garage (including small engine repair) to Schutte Park. The existing water production well will remain on site. The site will be converted to a stabilized park with water quality improvements for stormwater. Estimates provided by URS, Corp., Consulting Engineer. Justification Stringent environmental regulations will require improvements on the site. Relocation of existing city facility to Schutte Park. Expenditures FY 16 FY 17 FY 18 FY 19 FY 20 Total Planning/Design 385,000 385,000 Construction/Maintenance 2,067,000 2,067,000 2,067,000 6,201,000 Total 385,000 2,067,000 2,067,000 2,067,000 6,586,000 Funding Sources FY 16 FY 17 FY 18 FY 19 FY 20 Total General Fund 385,000 385,000 Other 2,067,000 2,067,000 2,067,000 6,201,000 Total 385,000 2,067,000 2,067,000 2,067,000 6,586,000 Budget Impact/Other Monday, May 11, 2015 135

FY 2016 Capital Investment Plan FY 16 thru FY 20 Department Public Works - Streets City of Dover, Delaware Contact Public Works Director Type Improvement Project # ST1603 Useful Life 50 years Project Name Replacement of Valve at Silver Lake Dam Category General New Project: Yes Account Number: 147-1800-554.40-31 Priority 1 Time-Line: FY-16 Status Active Total Project Cost: $60,000 Description The proposed project, identified by staff will replace the existing valve that assists in controlling the elevation of Silver Lake. The current valve is starting to leak. Preliminary estimates provided by JMT, Consulting Engineer. Justification This valve is essential to control the elevation of the lake during emergency situations. If the valve cannot function properly, downstream and upstream flooding issues could occur. Expenditures FY 16 FY 17 FY 18 FY 19 FY 20 Total Construction/Maintenance 60,000 60,000 Total 60,000 60,000 Funding Sources FY 16 FY 17 FY 18 FY 19 FY 20 Total General Fund 60,000 60,000 Total 60,000 60,000 Budget Impact/Other Monday, May 11, 2015 136

WATER/WASTEWATER FUND 137

City of Dover, Delaware FY 2016 Capital Investment Plan FY 16 thru FY 20 FUNDING SOURCE SUMMARY Source FY 16 FY 17 FY 18 FY 19 FY 20 Total Impact Fee Reserve 165,000 244,000 174,400 179,200 185,200 947,800 Water/Wastewater Fund 3,582,000 3,519,800 3,690,200 2,968,800 3,020,300 16,781,100 GRAND TOTAL 3,747,000 3,763,800 3,864,600 3,148,000 3,205,500 17,728,900 Monday, May 11, 2015 138

City of Dover, Delaware FY 2016 Capital Investment Plan FY 16 thru FY 20 PROJECTS BY DEPARTMENT Department Project# Priority FY 16 FY 17 FY 18 FY 19 FY 20 Total Wastewater Management Retreat Pump Station Replacement WW1507 7 360,500 360,500 Meter Replacement Program WW1600 n/a 150,000 200,000 200,000 200,000 200,000 950,000 Inflow/Infiltration Removal WW1601 1 875,000 1,196,000 1,250,000 1,250,000 1,250,000 5,821,000 Miscellaneous Pump Station Repairs WW1602 2 300,000 300,000 Rolling Acres Pump Station Replacement WW1603 3 52,000 372,000 424,000 Delaware Avenue Sanitary Sewer Extension WW1605 3 25,000 25,000 Lepore Road Sanitary Sewer Upgrade WW1703 3 50,000 250,000 300,000 Delaware Tech Pump Station Replacement WW1704 4 52,000 384,000 436,000 Silver Lake Pump Station Replacement WW1804 4 52,000 396,000 448,000 Walker Woods Pump Station Replacement WW1903 n/a 52,000 408,000 460,000 College Road Pump Station Replacement WW2003 n/a 55,000 55,000 Wastewater Management Total 1,762,500 1,870,000 2,136,000 1,898,000 1,913,000 9,579,500 Water Management Water Treatment Plant Process Improvements WD1503 3 500,000 700,000 1,200,000 SCADA Equipment Technology Upgrade WD1504 4 83,000 88,000 171,000 Meter Replacement Project WD1600 n/a 150,000 200,000 200,000 200,000 200,000 950,000 Wellhead Redevelopment Program WD1601 1 82,500 85,000 87,500 90,000 92,500 437,500 Future Well Installation WD1605 5 80,000 100,000 1,098,250 1,278,250 New Fence at Bayard Avenue WaterTower WD1606 6 89,000 89,000 Water Quality Improvements WQ1601 2 1,000,000 720,800 342,850 960,000 1,000,000 4,023,650 Water Management Total 1,984,500 1,893,800 1,728,600 1,250,000 1,292,500 8,149,400 GRAND TOTAL 3,747,000 3,763,800 3,864,600 3,148,000 3,205,500 17,728,900 139 Monday, May 11, 2015

FY 2016 Capital Investment Plan FY 16 thru FY 20 Department Wastewater Management City of Dover, Delaware Contact Public Works Director Type Improvement Project # WW1507 Useful Life 20-25 years Project Name Retreat Pump Station Replacement Category Water/Wastewater New Project: No Account Number: 417-6900-569.40-31 Priority 7 -- Time-Line: FY15-FY16 Status Active Total Project Cost: $360,500 Description The proposed project includes the replacement of the Smith & Loveless package pumping station installed in 1978. The station has exceeded its life expectancy of 20-25 years and is in need of a capacity upgrade due to the increased growth in the basin, specifically the proposed development at the Maple Dale Country Club, which had provided a cash-in-lieu contribution for upgrading the station proportional to the amount of flow they will be contributing to the pump station. Estimates provided by Pennoni Associates, Consulting Engineer. Justification Replace the aged station with a completely new station to prevent the need for costly non budgeted repairs to maintain operation. Pump failure resulting in a sewage spill into waterways or backup in a residence. Because of the age of the pump station, certain parts are no longer obtainable and replacement of equipment is costly. Design and bid in Fiscal 2015; construction in Fiscal 2016. Expenditures FY 16 FY 17 FY 18 FY 19 FY 20 Total Construction/Maintenance 360,500 360,500 Total 360,500 360,500 Funding Sources FY 16 FY 17 FY 18 FY 19 FY 20 Total Impact Fee Reserve 144,200 144,200 Water/Wastewater Fund 216,300 216,300 Total 360,500 360,500 Budget Impact/Other Monday, May 11, 2015 140

FY 2016 Capital Investment Plan FY 16 thru FY 20 Department Wastewater Management City of Dover, Delaware Contact Public Works Director Type Improvement Project # WW1600 Useful Life 20 years Project Name Meter Replacement Program Category Water/Wastewater New Project: Yes Account Number: 417-6800-568.40-31 Priority n/a Time-Line: FY16-FY20 Status Active Total Project Cost: $950,000 Description This project will be an ongoing project to replace our aged water meters in the system. A portion of water meters will be replaced each year. A majority of the water meters have exceeded their life expectancy of 15-20 years. The industry standard is to replace 20% of the meter inventory for five years. The City will benefit from this project by having a more efficient system which will recover maximum revenue to the water utility. Additionally, expenses of maintaining, stocking and operating the out dated meters are greatly reduced. This project will begin in Fiscal 2016. Justification This project will provide the City of Dover with accurate readings of our water users, thus creating accurate revenue from the customers. Delaying or eliminating this project would result in the age of the water meters increasing, and consequently the meters will not read the correct volume of water being consumed. Additionally, older water meters typically require more maintenance. Expenditures FY 16 FY 17 FY 18 FY 19 FY 20 Total Equip/Vehicle/Furnishings 150,000 200,000 200,000 200,000 200,000 950,000 Total 150,000 200,000 200,000 200,000 200,000 950,000 Funding Sources FY 16 FY 17 FY 18 FY 19 FY 20 Total Water/Wastewater Fund 150,000 200,000 200,000 200,000 200,000 950,000 Total 150,000 200,000 200,000 200,000 200,000 950,000 Budget Impact/Other Over time, the capabilities of a water meter to read accurate volumes of water deteriorates, typically registering less water than actually being consumed. With installation of new meters, accurate readings will increase the actual revenue from this utility. Monday, May 11, 2015 141

FY 2016 Capital Investment Plan FY 16 thru FY 20 Department Wastewater Management City of Dover, Delaware Contact Public Works Director Type Improvement Project # WW1601 Useful Life 50-80 Project Name Inflow/Infiltration Removal Category Water/Wastewater New Project: No Account Number: 417-6900-569.40-31 Priority 1 Time-Line: FY16-FY20 Status Active Total Project Cost: $5,821,000 Description This project identifies and corrects areas in the sanitary sewer collection system that are deteriorating and allowing groundwater to enter the sanitary sewer system through cracked pipes and/or joints. Video investigations of the lines are performed by in-house crews to determine the condition of subject pipes which may also help with the identification of sump pumps and other illicit connections to the system which will have to be removed by individual property owners. Investigations are occurring systematically through the sewer basins to establish projects for the following year. Sanitary sewer lines are also being inspected in conjunction with water quality improvement project areas to determine main condition. Smoke testing, pipe relining and or replacement are to occur each year. The wet weather which was experienced in both 2003 and 2009/2010/2011, exemplified the fact that the aging and deteriorating sanitary sewer system allows groundwater and rain water to enter the system. This in turn results in higher treatment charges from Kent County. In FY 2011 a new groundwater inflow adjustment charge was established as a result. It is critical to continue making improvements on a regular and planned basis to improve the integrity of the wastewater system. Weather occurs in a cyclical fashion and discrepancies between fees collected and charges received will likely happen again when groundwater and precipitation levels rise. FY 16 projects include rehabilitating the White Oak Farms Basin #5. Justification The wet weather experienced in both 2003 and 2009/2010/2011, highlighted the fact that we have an aging wastewater system that requires more attention to the condition of the old pipe network and more monitoring of illicit connections to the system. Inflow and infiltration are problems that all customers pay for since they are costs that are not assigned to an individual customer. Therefore, all customers are affected by expenses related to inflow and infiltration. Delaying or eliminating this project will result in continued higher treatment charges for wastewater flow to Kent County than is necessary. In addition, the reduction in available capacity in the City and county systems due to inflow and infiltration will reduce the capacity available for future growth. Expenditures FY 16 FY 17 FY 18 FY 19 FY 20 Total Construction/Maintenance 875,000 1,196,000 1,250,000 1,250,000 1,250,000 5,821,000 Total 875,000 1,196,000 1,250,000 1,250,000 1,250,000 5,821,000 Funding Sources FY 16 FY 17 FY 18 FY 19 FY 20 Total Water/Wastewater Fund 875,000 1,196,000 1,250,000 1,250,000 1,250,000 5,821,000 Total 875,000 1,196,000 1,250,000 1,250,000 1,250,000 5,821,000 Budget Impact/Other Monday, May 11, 2015 142

FY 2016 Capital Investment Plan FY 16 thru FY 20 Department Wastewater Management City of Dover, Delaware Contact Public Works Director Type Improvement Project # WW1602 Useful Life 50-80 Project Name Miscellaneous Pump Station Repairs Category Water/Wastewater New Project: No Account Number: Priority 2 Time-Line: FY-16 Status Active Total Project Cost: $300,000 Description Staff identified existing pump station issues that are not large enough to merit a complete replacement. These repairs are needed for the pump station to perform as efficiently as possible. The locations that have been identified by staff are the following: Puncheon Run and Dover Downs Pump Stations. Justification Delaying these upgrades will reduce the efficiently of the pump stations mentioned above, additionally, operational costs will continue to increase for the above mentioned pump stations. Expenditures FY 16 FY 17 FY 18 FY 19 FY 20 Total Construction/Maintenance 300,000 300,000 Total 300,000 300,000 Funding Sources FY 16 FY 17 FY 18 FY 19 FY 20 Total Water/Wastewater Fund 300,000 300,000 Total 300,000 300,000 Budget Impact/Other Monday, May 11, 2015 143

FY 2016 Capital Investment Plan FY 16 thru FY 20 Department Wastewater Management City of Dover, Delaware Contact Public Works Director Type Improvement Project # WW1603 Useful Life 20-25 years Project Name Rolling Acres Pump Station Replacement Category Water/Wastewater New Project: No Account Number: 417-6900-569.40-31 Priority 3 Time-Line: FY16-FY17 Status Active Total Project Cost: $424,000 Description This project calls for replacement of the Smith & Loveless package pumping station installed in 1973 in order to handle the commercial areas from Harrington Realty Shopping Center to the Howard Johnson Hotel. The station has exceeded its life anticipated expectancy of 20-25 years and is in need of a capacity upgrade due to the high peak inflow rates. This station experiences periods of high inflow rates due to the hotel occupancy and is susceptible to possible inflow/infiltration. Staff has observed numerous pump high wet well alarms due to high inflows and increased runtimes during wet months. Justification Replace the aged station with a completely new station to prevent the need for costly unbudgeted repairs to maintain operation. Pump failure resulting in a sewage spill into waterway or backup in a residence. Due to the age of the station, certain parts are no longer obtainable, and replacement of equipment is costly. Design and bid in Fiscal 2016; construction in Fiscal 2017 Expenditures FY 16 FY 17 FY 18 FY 19 FY 20 Total Planning/Design 52,000 52,000 Construction/Maintenance 372,000 372,000 Total 52,000 372,000 424,000 Funding Sources FY 16 FY 17 FY 18 FY 19 FY 20 Total Impact Fee Reserve 20,800 223,200 244,000 Water/Wastewater Fund 31,200 148,800 180,000 Total 52,000 372,000 424,000 Budget Impact/Other Monday, May 11, 2015 144

FY 2016 Capital Investment Plan FY 16 thru FY 20 Department Wastewater Management City of Dover, Delaware Contact Public Works Director Type Improvement Project # WW1605 Useful Life 90+ years Project Name Delaware Avenue Sanitary Sewer Extension Category Water/Wastewater New Project: No Account Number: 417-6900-569.40-31 Priority 3 Time-Line: FY-16 Status Active Total Project Cost: $25,000 Description In Fiscal Year 2014, staff identified a combined sewer (wastewater and stormwater) situation in Kent Avenue. The sanitary flow was removed from said pipe. With the removal of the sanitary sewer in Kent Avenue, a vacant lot on the southwest corner of Kent Avenue and Delaware Avenue would not have access to sanitary sewer if the parcel were to be developed. If staff maintained the sanitary sewer main in Kent Avenue to provide sanitary sewer access to this lot, the price would be unjustifiable, due to the implications in the recently upgraded Division Street. This project would provide a sanitary sewer main extension in Delaware Avenue to provide services to the northwestern portion of the vacant lot. Justification Delaying these upgrades would prevent the ability for the vacant lot to be developed with the use of a sanitary sewer main. Installation of this main prior to development of the vacant lot will allow staff to plan for road restoration more efficiently. Expenditures FY 16 FY 17 FY 18 FY 19 FY 20 Total Construction/Maintenance 25,000 25,000 Total 25,000 25,000 Funding Sources FY 16 FY 17 FY 18 FY 19 FY 20 Total Water/Wastewater Fund 25,000 25,000 Total 25,000 25,000 Budget Impact/Other Monday, May 11, 2015 145

FY 2016 Capital Investment Plan FY 16 thru FY 20 Department Wastewater Management City of Dover, Delaware Contact Public Works Director Type Improvement Project # WW1703 Useful Life 90+ years Project Name Lepore Road Sanitary Sewer Upgrade Category Water/Wastewater New Project: No Account Number: 417-6900-569.40-31 Priority 3 Time-Line: FY17-FY18 Status Active Total Project Cost: $300,000 Description This project calls for the replacement of approximately 374 linear feet of 8 inch gravity sewer main. Currently, the sewer main operates in a reverse slope condition, which overloads the pipe. The proposed upgrade will provide slope and adequate capacity for current flow to be carried to discharge. Estimates provided by Pennoni Associates, Consulting Engineer. Justification This project will allow for proper capacity and slope to handle the current flow. Delaying or eliminating this project could result in overflow of wastewater material. Design and bid in Fiscal 2017; construction in Fiscal 2018. Expenditures FY 16 FY 17 FY 18 FY 19 FY 20 Total Planning/Design 50,000 50,000 Construction/Maintenance 250,000 250,000 Total 50,000 250,000 300,000 Funding Sources FY 16 FY 17 FY 18 FY 19 FY 20 Total Water/Wastewater Fund 50,000 250,000 300,000 Total 50,000 250,000 300,000 Budget Impact/Other Monday, May 11, 2015 146

FY 2016 Capital Investment Plan FY 16 thru FY 20 Department Wastewater Management City of Dover, Delaware Contact Public Works Director Type Improvement Project # WW1704 Useful Life 20-25 years Project Name Delaware Tech Pump Station Replacement Category Water/Wastewater New Project: No Account Number: 417-6900-569.40-31 Priority 4 Time-Line: FY17-FY18 Status Active Total Project Cost: $436,000 Description This project calls for replacement of the Smith & Loveless package pumping station installed in 1975 in order to handle the increased flows from the area. The station has exceeded its life anticipated expectancy of 20-25 years and is in need of a capacity upgrade due to anticipated increase flow. Estimates provided by Pennoni Associates, Consulting Engineer. Justification Replace the aged station with a completely new station to prevent the need for costly unbudgeted repairs to maintain operation. Pump failure resulting in a sewage spill into waterway or backup in a residence. Due to the age of the station, certain parts are no longer obtainable, and replacement of equipment is costly. Design in Fiscal 2017; construction in Fiscal 2018 Expenditures FY 16 FY 17 FY 18 FY 19 FY 20 Total Planning/Design 52,000 52,000 Construction/Maintenance 384,000 384,000 Total 52,000 384,000 436,000 Funding Sources FY 16 FY 17 FY 18 FY 19 FY 20 Total Impact Fee Reserve 20,800 153,600 174,400 Water/Wastewater Fund 31,200 230,400 261,600 Total 52,000 384,000 436,000 Budget Impact/Other Monday, May 11, 2015 147

FY 2016 Capital Investment Plan FY 16 thru FY 20 Department Wastewater Management City of Dover, Delaware Contact Public Works Director Type Improvement Project # WW1804 Useful Life 20-25 years Project Name Silver Lake Pump Station Replacement Category Water/Wastewater New Project: No Account Number: 417-6900-569.40-31 Priority 4 Time-Line: FY18-FY19 Status Active Total Project Cost: $448,000 Description This project calls for replacement of the Smith & Loveless package pumping station installed in 1982 in order to handle development in the area, as well as completely rehabilitate the wet well side of the pump station using a poly-triplex system liner. The station has exceeded its life expectancy of 20-25 years and is in need of a capacity upgrade to handle anticipated growth in the basin. Justification Replace the aged station with a completely new station to prevent the need for costly unbudgeted repairs to maintain operation. Pump failure resulting in a sewage spill into waterway or backup in a residence. Due to the age of the station, certain parts are no longer obtainable and replacement of equipment is costly. Design and bid in Fiscal 2018; construction in Fiscal 2019. Expenditures FY 16 FY 17 FY 18 FY 19 FY 20 Total Planning/Design 52,000 52,000 Construction/Maintenance 396,000 396,000 Total 52,000 396,000 448,000 Funding Sources FY 16 FY 17 FY 18 FY 19 FY 20 Total Impact Fee Reserve 20,800 158,400 179,200 Water/Wastewater Fund 31,200 237,600 268,800 Total 52,000 396,000 448,000 Budget Impact/Other Monday, May 11, 2015 148

FY 2016 Capital Investment Plan FY 16 thru FY 20 Department Wastewater Management City of Dover, Delaware Contact Public Works Director Type Improvement Project # WW1903 Useful Life 20-25 years Project Name Walker Woods Pump Station Replacement Category Water/Wastewater New Project: Yes Account Number: 417-6900-569.40-31 Priority n/a Time-Line: FY19-FY20 Status Active Total Project Cost: $460,000 Description This project calls for replacement of the Smith & Loveless package pumping station installed in 1989 in order to handle development in the area, as well as completely rehabilitate the wet well side of the pump station using a poly-triplex system liner. The station has exceeded its life expectancy of 20-25 years and is in need of a capacity upgrade to handle anticipated growth in the basin. Justification Replace the aged station with a completely new station to prevent the need for costly unbudgeted repairs to maintain operation. Pump failure resulting in a sewage spill into waterway or backup in a residence. Due to the age of the station, certain parts are no longer obtainable and replacement of equipment is costly. Design and bid in Fiscal 2019; construction in Fiscal 2020. Expenditures FY 16 FY 17 FY 18 FY 19 FY 20 Total Planning/Design 52,000 52,000 Construction/Maintenance 408,000 408,000 Total 52,000 408,000 460,000 Funding Sources FY 16 FY 17 FY 18 FY 19 FY 20 Total Impact Fee Reserve 20,800 163,200 184,000 Water/Wastewater Fund 31,200 244,800 276,000 Total 52,000 408,000 460,000 Budget Impact/Other Monday, May 11, 2015 149

FY 2016 Capital Investment Plan FY 16 thru FY 20 Department Wastewater Management City of Dover, Delaware Contact Public Works Director Type Improvement Project # WW2003 Useful Life 20-25 years Project Name College Road Pump Station Replacement Category Water/Wastewater New Project: Yes Account Number: 417-6900-569.40-31 Priority n/a Time-Line: FY20 Status Active Total Project Cost: $55,000 Description This project calls for replacement of the Smith & Loveless package pumping station installed in 1987 in order to handle development in the area, as well as completely rehabilitate the wet well side of the pump station using a poly-triplex system liner. The station has exceeded its life expectancy of 20-25 years and is in need of a capacity upgrade to handle anticipated growth in the basin. Justification Replace the aged station with a completely new station to prevent the need for costly unbudgeted repairs to maintain operation. Pump failure resulting in a sewage spill into waterway or backup in a residence. Due to the age of the station, certain parts are no longer obtainable and replacement of equipment is costly. Design and bid in Fiscal 2020; construction in Fiscal 2021. Expenditures FY 16 FY 17 FY 18 FY 19 FY 20 Total Planning/Design 55,000 55,000 Total 55,000 55,000 Funding Sources FY 16 FY 17 FY 18 FY 19 FY 20 Total Impact Fee Reserve 22,000 22,000 Water/Wastewater Fund 33,000 33,000 Total 55,000 55,000 Budget Impact/Other Monday, May 11, 2015 150

FY 2016 Capital Investment Plan FY 16 thru FY 20 Department Water Management City of Dover, Delaware Contact Public Works Director Type Improvement Project # WD1503 Useful Life 20-25 years Project Name Water Treatment Plant Process Improvements Category Water/Wastewater New Project: No Account Number: 417-6800-568.40-31 Priority 3 Time-Line: FY16-FY17 Status Active Total Project Cost: $1,200,000 Description This project, identified in the 2006 Water Master Plan Update, proposes process improvements to the existing Water Treatment Plant. Due to limitations with the Ozone Contactors, the capacity at the Water Treatment Plant is limited to 4.0 million gallons per day, as opposed to 5.0 million gallons per day, as originally designed. A consultant will be utilized to determine the best means and improvements necessary to rehabilitate the infrastructure. Planning is proposed for Fiscal 2015; construction to begin in Fiscal 2016. Justification Process improvements will allow for improved ability to meet regulatory requirements. Delaying or eliminating this project can result in deteriorating infrastructure, which could limit growth, and/or cause regulatory incompliance. Expenditures FY 16 FY 17 FY 18 FY 19 FY 20 Total Construction/Maintenance 500,000 700,000 1,200,000 Total 500,000 700,000 1,200,000 Funding Sources FY 16 FY 17 FY 18 FY 19 FY 20 Total Water/Wastewater Fund 500,000 700,000 1,200,000 Total 500,000 700,000 1,200,000 Budget Impact/Other Monday, May 11, 2015 151

FY 2016 Capital Investment Plan FY 16 thru FY 20 Department Water Management City of Dover, Delaware Contact Public Works Director Type Improvement Project # WD1504 Useful Life 10-12 years Project Name SCADA Equipment Technology Upgrade Category Water/Wastewater New Project: No Account Number: 417-6800-568.40-31 Priority 4 Time-Line: FY16-FY17 Status Active Total Project Cost: $171,000 Description This project involves the replacement of antiquated and/or obsolete equipment related to the SCADA (Supervisory Control and Data Acquisition) system, which controls water production. This equipment includes, but is not limited to, Remote Telemetry Units (RTUs), Master Telemetry Unit (MTU) and Radios. SCADA is used for reporting, on a constant basis, the status of the City of Dover’s water production wells as well as the Water Treatment Plant. The equipment being replaced would be outdated, or unable to be repaired. It is estimated that upgrades will be made at deep well sites and the Water Treatment Plant, as part of this program. Justification Replace failing and antiquated equipment to improve monitoring ability and system control to comply with regulatory and reporting requirements and to prevent the need for costly non budgeted emergency repairs. Due to the age of some of the equipment, only used parts are available. Lack of alarms regarding problems at water production wells and the water treatment plant. Failures would provide no advance warnings of failures in the field at water production sites. Expenditures FY 16 FY 17 FY 18 FY 19 FY 20 Total Miscellaneous 83,000 88,000 171,000 Total 83,000 88,000 171,000 Funding Sources FY 16 FY 17 FY 18 FY 19 FY 20 Total Water/Wastewater Fund 83,000 88,000 171,000 Total 83,000 88,000 171,000 Budget Impact/Other Monday, May 11, 2015 152

FY 2016 Capital Investment Plan FY 16 thru FY 20 Department Water Management City of Dover, Delaware Contact Public Works Director Type Improvement Project # WD1600 Useful Life 20 years Project Name Meter Replacement Project Category Water/Wastewater New Project: Yes Account Number: 417-6800-568.40-31 Priority n/a Time-Line: FY16-FY18 Status Active Total Project Cost: $950,000 Description This project will be an ongoing project to replace our aged water meters in the system. A portion of water meters will be replaced each year. A majority of the water meters have exceeded their life expectancy of 15-20 years. The industry standard is to replace 20% of the meter inventory for five years. The City will benefit from this project by having a more efficient system which will recover maximum revenue to the water utility. Additionally, expenses of maintaining, stocking and operating the out dated meters are greatly reduced. This project will begin in Fiscal 2016. Justification This project will provide the City of Dover with accurate readings of our water users, thus creating accurate revenue from the customers. Delaying or eliminating this project would result in the age of the water meters increasing, and consequently the meters will not read the correct volume of water being consumed. Additionally, older water meters typically require more maintenance. Expenditures FY 16 FY 17 FY 18 FY 19 FY 20 Total Equip/Vehicle/Furnishings 150,000 200,000 200,000 200,000 200,000 950,000 Total 150,000 200,000 200,000 200,000 200,000 950,000 Funding Sources FY 16 FY 17 FY 18 FY 19 FY 20 Total Water/Wastewater Fund 150,000 200,000 200,000 200,000 200,000 950,000 Total 150,000 200,000 200,000 200,000 200,000 950,000 Budget Impact/Other Over time, the capabilities of a water meter to read accurate volumes of water deteriorates, typically registering less water than actually being consumed. With installation of new meters, accurate readings will increase the actual revenue from this utility. Monday, May 11, 2015 153

FY 2016 Capital Investment Plan FY 16 thru FY 20 Department Water Management City of Dover, Delaware Contact Public Works Director Type Improvement Project # WD1601 Useful Life 20-25 years Project Name Wellhead Redevelopment Program Category Water/Wastewater New Project: No Account Number: Priority 1 Time-Line: FY16-FY20 Status Active Total Project Cost: $437,500 Description This project will provide for rehabilitation and repair of each deep wellhead in an effort to maintain operations and/or increase/maintain the yield of each well as it relates to the permitted allocation. FY 2008; total well inspection and testing performed. FY 2009: Motors at Wells #6A and #9 were rebuilt, and wells #13R and #15 were redeveloped. FY 2010: Well #10. FY 2011: Well #4 redevelopment and well piping improvements at various well locations, as well as continued well testing. FY 2012: Well #1 redevelopment. FY2013: complete repair of Well #10. FY2014: complete repair of well #14. FY2015 inspected: 2, 3, 11, 13R, 15, PW2 & PW4B. FY 2016 scheduled: 4, 6, 8R, 9, 10, PW6A & PW8A. Justification The well screening and gravel pack requires cleaning over time due to a buildup of mineral deposits and foreign materials such as clay and silt. This maintenance effort is critical to ensure that production can continue to meet demand. It is also necessary to maintain the operational aspects of each well and provide repairs as needed to minimize downtime to maintain system capacity. Delaying or eliminating this project would result in the continued deterioration of the well screen, gravel pack, and well yield over time. It would also result in increased well downtime, emergency repairs, and decreased capacity. These issues can lead to increased flow pattern changes and water quality concerns. Expenditures FY 16 FY 17 FY 18 FY 19 FY 20 Total Construction/Maintenance 82,500 85,000 87,500 90,000 92,500 437,500 Total 82,500 85,000 87,500 90,000 92,500 437,500 Funding Sources FY 16 FY 17 FY 18 FY 19 FY 20 Total Water/Wastewater Fund 82,500 85,000 87,500 90,000 92,500 437,500 Total 82,500 85,000 87,500 90,000 92,500 437,500 Budget Impact/Other Monday, May 11, 2015 154

FY 2016 Capital Investment Plan FY 16 thru FY 20 Department Water Management City of Dover, Delaware Contact Public Works Director Type Improvement Project # WD1605 Useful Life 100+ Project Name Future Well Installation Category Water/Wastewater New Project: Yes Account Number: 417-6800-568.40-31 Priority 5 Time-Line: FY16-FY18 Status Active Total Project Cost: $1,278,250 Description The proposed project, identified by staff will drill a new well to increase production capacity for the Water Department. Estimates provided by URS, Consulting Engineer Justification To meet increased water demand and fire suppression requirements. Delaying or eliminating this project would result in the continued reduction in our production capabilities under our permitted allocation, as well as limiting the City’s growth. Initial planning is proposed for FY15, site procurement planned for FY16 and construction in FY17. Expenditures FY 16 FY 17 FY 18 FY 19 FY 20 Total Planning/Design 80,000 80,000 Land Acquisition 100,000 100,000 Construction/Maintenance 1,098,250 1,098,250 Total 80,000 100,000 1,098,250 1,278,250 Funding Sources FY 16 FY 17 FY 18 FY 19 FY 20 Total Water/Wastewater Fund 80,000 100,000 1,098,250 1,278,250 Total 80,000 100,000 1,098,250 1,278,250 Budget Impact/Other Monday, May 11, 2015 155

FY 2016 Capital Investment Plan FY 16 thru FY 20 Department Water Management City of Dover, Delaware Contact Public Utilities Director Type Improvement Project # WD1606 Useful Life 50 years Project Name New Fence at Bayard Avenue WaterTower Category Water/Wastewater New Project: Yes Account Number: 417-6800-568.40-31 Priority 6 -- Time-Line: FY-16 Status Active Total Project Cost: $89,000 Description The proposed project, identified by staff will replace the existing fence that surrounds the Bayard Avenue Water Tower and Well #13R, located just north of Martin Luther King Boulevard. Justification The existing fence is failing and citizens of the City are cutting the fence and walking through the property. This increases the Cities liabilities and should be corrected for the safety of the public and of the Cities infrastructure. Expenditures FY 16 FY 17 FY 18 FY 19 FY 20 Total Construction/Maintenance 89,000 89,000 Total 89,000 89,000 Funding Sources FY 16 FY 17 FY 18 FY 19 FY 20 Total Water/Wastewater Fund 89,000 89,000 Total 89,000 89,000 Budget Impact/Other Monday, May 11, 2015 156

FY 2016 Capital Investment Plan FY 16 thru FY 20 Department Water Management City of Dover, Delaware Contact Public Works Director Type Improvement Project # WQ1601 Useful Life 90+ years Project Name Water Quality Improvements Category Water/Wastewater New Project: No Account Number: 417-6800-568.40-31 Priority 2 Time-Line: FY16-FY20 Status Active Total Project Cost: $4,023,650 Description This project was first identified by staff and the 2006 Water Master Plan Update, and has since become further refined with the FY 2006 Water Quality Evaluation. Projects to be included under this category primarily consist of replacement or relining of old unlined cast iron water main within the City’s water distribution system; system upgrades to improve system control; and utilization of a consultant to provide additional design and evaluation services, as needed. Recent research and data collection has produced a Water Main Rehabilitation Priority List, based on several criteria to identify water mains that are in need of replacement or relining. Pipes will be upgraded according to the severity of the pipe condition, as well as coordination with the City of Dover’s Public Services Street Rehabilitation Program. Between FY 2008 and FY 2010, the deep well contact chambers were designed and installed. Between FY 2008 and FY 2011 the water mains that were replaced include, Washington Street, Pennsylvania Avenue, South Street, Pear Street, West Street, Hazel Road, Maryland Avenue, American Avenue, Bayard Avenue, Greenhill Avenue, Bayard Avenue Alley and Loockerman Street. Operational efforts, such as flushing, will continue to occur on a routine basis. FY 2012 improvements include, N. Pennsylvania Ave., American Ave. Ext., Madison St., Rodney Rd., New Street, Ross Street and Bradford Street (near Wesley College). FY 2013 improvements included North Street. As part of the Water Main Rehabilitation Priority List, water lines were identified throughout the City that requires replacement/relining. FY 2014 improvements included West Dover Connector. Using this as a guide, FY 2015 roads include New Street, William Street and West Street Alley. Justification Water quality complaints have eroded consumer confidence in the City’s water supply as the water is perceived to be aesthetically unpleasant. In order to reduce complaints and potentially alleviate this problem, it is necessary to implement the improvements identified by staff, the 2006 Water Master Plan Update, and the FY 2006 Water Quality Evaluation. Delaying or eliminating this project will prolong customer dissatisfaction and further erode confidence in the City’s water supply. In addition, main rehabilitation and replacement, ensuring pipes do not significantly exceed the expected life cycle, is critical to provide a reliable supply of water for our customers and for fire suppression. Water leaks and breaks on older lines can have a significant impact on our ability to serve over time. Addressing the brown water and associated water quality concerns of the City’s water system will not only require capital improvements to the system but also operational changes. Some operation changes will result in no net effect on the operating budget, while others will need to be addressed in the development of future operating budgets. Such items include tools and supplies necessary to improve system sampling and monitoring as well as tools and supplies necessary to improve system-wide flushing operations. Expenditures FY 16 FY 17 FY 18 FY 19 FY 20 Total Miscellaneous 1,000,000 720,800 342,850 960,000 1,000,000 4,023,650 Total 1,000,000 720,800 342,850 960,000 1,000,000 4,023,650 Funding Sources FY 16 FY 17 FY 18 FY 19 FY 20 Total Water/Wastewater Fund 1,000,000 720,800 342,850 960,000 1,000,000 4,023,650 Total 1,000,000 720,800 342,850 960,000 1,000,000 4,023,650 Budget Impact/Other Monday, May 11, 2015 157

ELECTRIC FUND

City of Dover, Delaware FY 2016 Capital Investment Plan FY 16 thru FY 20 FUNDING SOURCE SUMMARY Source FY 16 FY 17 FY 18 FY 19 FY 20 Total Developer Contribution 1,900,000 1,900,000 Electric Revenue 3,949,300 5,702,700 6,268,000 4,613,000 4,249,000 24,782,000 GRAND TOTAL 5,849,300 5,702,700 6,268,000 4,613,000 4,249,000 26,682,000 Monday, May 11, 2015 159

City of Dover, Delaware FY 2016 Capital Investment Plan FY 16 thru FY 20 PROJECTS BY DEPARTMENT Department Project# Priority FY 16 FY 17 FY 18 FY 19 FY 20 Total Electric Engineering Horsepond to Cartanza 69 kV Rebuild EE1500 n/a 255,500 255,500 Townpoint Development ~ Distribution Feeders EE1513 n/a 350,000 350,000 350,000 350,000 1,400,000 Transmission Line Maintenance Program EE1603 7 75,000 75,000 75,000 75,000 75,000 375,000 Lighting Project and Rehabilitation EE1604 4 67,000 50,000 50,000 50,000 50,000 267,000 69 kV Cable Replacement North Street EE1605 n/a 50,000 480,700 530,700 Distribution Capacitors and Controls EE1606 10 50,000 50,000 50,000 50,000 50,000 250,000 Horsepond Road URD ~ Distribution Feeders EE1607 n/a 67,000 67,000 Frazier 900 Circuits EE1610 n/a 10,000 10,000 10,000 10,000 10,000 50,000 Dover Air Force Base Substation Rebuild EE1612 n/a 30,000 500,000 530,000 Oak Grove Trailer Park - Distribution Upgrade EE1617 1 78,500 78,500 Lakeland Laurel Point - Distribution Upgrades EE1618 4 63,000 63,000 RT 8 / Mifflin Road Crossing - Dist. Upgrade EE1619 5 51,500 51,500 Route 8 Taps - Distribution Upgrade EE1620 7 38,500 38,500 Townsend Brothers - Distribution Upgrade EE1621 6 14,500 14,500 Persimmon Tree Apartments - Dist. Upgrade EE1622 3 62,000 62,000 Dover East Estates - Distribution Upgrade EE1627 2 130,000 130,000 Reed Street Building Roof Repair/Replacement EE1630 n/a 201,800 201,800 North Street OH to UG (Governors to Queen) EE1631 n/a 100,000 100,000 System Automation EE1702 n/a 0 150,000 150,000 150,000 150,000 600,000 Distribution Upgrades EE1810 1 0 0 300,000 600,000 600,000 1,500,000 Electric Engineering Total 1,694,300 1,665,700 985,000 1,285,000 935,000 6,565,000 Electric T & D New Developments EE1616 1 2,279,000 2,500,000 2,500,000 2,500,000 2,500,000 12,279,000 DNREC R&R Metering ~ New Development EE1623 n/a 41,000 41,000 Public Works Wetland Project EE1625 8 78,000 78,000 Washington Street Lights - New Development EE1626 9 40,000 40,000 NBR Properties, LLC - New Development EE1628 n/a 19,000 19,000 Tall Pines Condos - New Development EE1629 n/a 43,000 43,000 Electric T & D Total 2,500,000 2,500,000 2,500,000 2,500,000 2,500,000 12,500,000 Power Plant McKee Run Unit 3 Boiler Systems EG1504 1 42,000 382,000 0 299,000 80,000 803,000 McKee Run Building Equipment Replacement EG1601 8 42,000 59,000 99,000 27,000 66,000 293,000 McKee Run Unit 3 Auxiliary System Components EG1607 2 135,000 128,000 261,000 277,000 213,000 1,014,000 McKee Run & VanSant CEMS Upgrade EG1608 3 89,000 89,000 Van Sant Unit 11 Component Replacements EG1609 4 21,000 89,000 0 0 305,000 415,000 Plant Systems Safety & Compliance Improvements EG1610 6 157,000 112,000 37,000 306,000 McKee Run & VanSant - Preservation of Structures EG1611 9 215,000 261,000 0 200,000 0 676,000 Unit 3 Cooling Water Line Repairs EG1612 5 469,000 469,000 McKee Run Unit 3 Stack Repairs EG1613 7 485,000 485,000 Van Sant Unit 11 Major Overhaul EG1701 n/a 400,000 1,948,000 0 150,000 2,498,000 McKee Run Unit 3 Hydrogen Purity Analyzer EG1704 10 0 85,000 85,000 McKee Run Units 1 & 2 Component Repairs EG1705 n/a 21,000 0 0 21,000 160 Monday, May 11, 2015

Department Project# Priority FY 16 FY 17 FY 18 FY 19 FY 20 Total McKee Run Unit 3 Turbine Repairs EG1805 n/a 438,000 25,000 463,000 Power Plant Total 1,655,000 1,537,000 2,783,000 828,000 814,000 7,617,000 GRAND TOTAL 5,849,300 5,702,700 6,268,000 4,613,000 4,249,000 26,682,000 161 Monday, May 11, 2015

FY 2016 Capital Investment Plan FY 16 thru FY 20 Department Electric Engineering City of Dover, Delaware Contact Electric Director Type Improvement Project # EE1500 Useful Life 20-25 years Project Name Horsepond to Cartanza 69 kV Rebuild Category Electric New Project: No Account Number: 487-8300-563.50-85 Priority n/a Time-Line: Status Active Total Project Cost: $330,500 Description Replace the poles, conductor, and insulators from Horsepond Substation to Long Point Road. COMMENTS: Alternative pole materials will be explored to minimize future woodpecker damage to the new segment. Justification Currently, the conductor size from Horsepond substation to Long Point Road limits the capacity that can be carried on Feeder 4. Upgrading the existing 636 ACSR to 795 ACSR will increase the capacity and result in a standard conductor size from Cartanza Substation to Horsepond Substation. Additionally the poles have nearly reached the life expectancy due to numerous problems with woodpecker destruction. The annual pole testing program has noted deficiencies in the above ground condition of this line segment. CONSEQUENCES OF DELAYING OR ELIMINATING THIS PROJECT: Aging poles and hardware may fail causing outages in east Dover. Prior Expenditures FY 16 FY 17 FY 18 FY 19 FY 20 Total 75,000 Construction/Maintenance 255,500 255,500 Total Total 255,500 255,500 Prior Funding Sources FY 16 FY 17 FY 18 FY 19 FY 20 Total 75,000 Electric Revenue 255,500 255,500 Total Total 255,500 255,500 Budget Impact/Other Monday, May 11, 2015 162

FY 2016 Capital Investment Plan FY 16 thru FY 20 Department Electric Engineering City of Dover, Delaware Contact Electric Director Type Unassigned Project # EE1513 Useful Life Project Name Townpoint Development ~ Distribution Feeders Category Electric New Project: Yes Account Number: 487-8300-563.90-25 Priority n/a Time-Line: Status Active Total Project Cost: $1,650,000 Description This project involves the systemic replacement of overhead lines with underground lines. Whenever services are being moved, wire is damaged, trees cause a high number of outages, or development is in progress, and when it is beneficial to the Utility to convert to underground. This can involve a single line section or an entire residential neighborhood. Annual outage records are reviewed and selected areas are scheduled for upgrade to underground service. Additionally, this program funds the replacement of existing underground conductors and equipment that have reached their useful life and have started failing and require replacement. Justification The number of storm and tree-related outages have been greatly reduced under this program and further improvements can be made to insure the most reliable electric service possible. Reliability has become one of most important factors to electric customers, second only to safety. The utility has responded by attempting to provide the most reliable system possible. Underground cable replacements are necessary as the useful, reliable, life of the original underground cable was 20-30 years. By proactively replacing this cable we will minimize outages and improve system reliability. In addition to cable replacement, overhead lines are replaced with underground to minimize outages caused by tree growth or animal contact. Lastly, overhead lines that have reached the end of their useful life are replaced with underground instead of rebuilding the overhead. CONSEQUENCES OF DELAYING OR ELIMINATING THIS PROJECT: Continued outages lead to increased complaints from our customers and will lead to customer dissatisfaction. There will be increased costs for repairs made under outage conditions as well as loss of electric revenue. Prior Expenditures FY 16 FY 17 FY 18 FY 19 FY 20 Total 250,000 Construction/Maintenance 350,000 350,000 350,000 350,000 1,400,000 Total Total 350,000 350,000 350,000 350,000 1,400,000 Prior Funding Sources FY 16 FY 17 FY 18 FY 19 FY 20 Total 250,000 Electric Revenue 350,000 350,000 350,000 350,000 1,400,000 Total Total 350,000 350,000 350,000 350,000 1,400,000 Budget Impact/Other Monday, May 11, 2015 163

FY 2016 Capital Investment Plan FY 16 thru FY 20 Department Electric Engineering City of Dover, Delaware Contact Electric Director Type Maintenance Project # EE1603 Useful Life 20-25 years Project Name Transmission Line Maintenance Program Category Electric New Project: No Account Number: 487-8300-563.70-35 Priority 7 -- Time-Line: On Going Maint. Status Active Total Project Cost: $375,000 Description Replace aging porcelain insulators and related components on the transmission system with new polymer insulators and components. COMMENTS: 69kV transmission line segments Horsepond Road to Lafferty Lane. Justification Insulators have a defined equipment life due to sun and weather conditions breaking down the porcelain and base bonding cement. Insulators installed in 1960's and 1970's are due for replacement because of this deterioration. We have experienced several transmission outages due to insulator failure. Replacing the insulators should extend the life an additional 30 years. CONSEQUENCES OF DELAYING OR ELIMINATING THIS PROJECT: Outages may occur if insulators are not replaced and fail due to deterioration. Expenditures FY 16 FY 17 FY 18 FY 19 FY 20 Total Construction/Maintenance 75,000 75,000 75,000 75,000 75,000 375,000 Total 75,000 75,000 75,000 75,000 75,000 375,000 Funding Sources FY 16 FY 17 FY 18 FY 19 FY 20 Total Electric Revenue 75,000 75,000 75,000 75,000 75,000 375,000 Total 75,000 75,000 75,000 75,000 75,000 375,000 Budget Impact/Other Monday, May 11, 2015 164

FY 2016 Capital Investment Plan FY 16 thru FY 20 Department Electric Engineering City of Dover, Delaware Contact Electric Director Type Maintenance Project # EE1604 Useful Life 10-12 years Project Name Lighting Project and Rehabilitation Category Electric New Project: No Account Number: 487-8300-563.50-76 Priority 4 Time-Line: Status Active Total Project Cost: $267,000 Description This fund was developed to replace and repair existing street lights or install new lights upon customer request. COMMENTS: This fund will remain active as long as there are improvements to be made. Private area lighting requests are a source of revenue for the City. Areas completed are White Oak Apartments, Westfield, Fairview, Cranberry Run, Millcreek, Independence Village and Governors Avenue (South 100 Block), Deerfield, Central Middle School, Fox Hall, Hidden Oaks, a portion of North Governors Ave, The Meadows, Turnberry, Baltray, Bicentennial, The Overlook and Woodcrest . Areas to be completed this budget year include Old Mill Acres and Eagles Nest. There are 25 LED lights to be completed on RT 13 in FY16. Quote received for those particular lights is $17,000. Justification The Electric Division receives numerous requests for lighting improvements. These requests are due to the lights aging, and as they age they put out less light and become unreliable. There are many developments that are in need of street light improvements. This fund would also provide funding for new private security light requests. ONSEQUENCES OF DELAYING OR ELIMINATING THIS PROJECT: Constant complaints of poor street lighting and multiple failures due to antiquated lights. Expenditures FY 16 FY 17 FY 18 FY 19 FY 20 Total Construction/Maintenance 67,000 50,000 50,000 50,000 50,000 267,000 Total 67,000 50,000 50,000 50,000 50,000 267,000 Funding Sources FY 16 FY 17 FY 18 FY 19 FY 20 Total Electric Revenue 67,000 50,000 50,000 50,000 50,000 267,000 Total 67,000 50,000 50,000 50,000 50,000 267,000 Budget Impact/Other Monday, May 11, 2015 165

FY 2016 Capital Investment Plan FY 16 thru FY 20 Department Electric Engineering City of Dover, Delaware Contact Electric Director Type Improvement Project # EE1605 Useful Life 30+ years Project Name 69 kV Cable Replacement North Street Category Electric New Project: No Account Number: 487-8300-563.50-83 Priority n/a Time-Line: FY15-FY17 Status Active Total Project Cost: $615,700 Description Replace the aging 69 KV underground cables from North Street switching yard to Kraft’s and Proctor & Gamble’s (customer owned) substations. TIME-LINE/CURRENT STATUS: Engineering is scheduled for FY15/FY16 with completion in FY17. COMMENTS: Proactively replacing cables that have reached their anticipated life. Justification Proctor & Gamble and Kraft are two (2) of the City of Dover’s 69 KV customers and it is our obligation to provide them with adequate and reliable service. The cables were installed in 1973 and have had two repairs. The first repair was in 1986 and the second repair was in 1992. CONSEQUENCES OF DELAYING OR ELIMINATING THIS PROJECT: Customer outages due to failing conductor. Additionally, the limited capacity of a single circuit could restrict the possible generation of NRG and the production of Proctor & Gamble and Kraft Foods. This project will take some time as the old cable is buried in concrete which will require rerouting. Prior Expenditures FY 16 FY 17 FY 18 FY 19 FY 20 Total 85,000 Planning/Design 50,000 50,000 Construction/Maintenance 480,700 480,700 Total Total 50,000 480,700 530,700 Prior Funding Sources FY 16 FY 17 FY 18 FY 19 FY 20 Total 85,000 Electric Revenue 50,000 480,700 530,700 Total Total 50,000 480,700 530,700 Budget Impact/Other Monday, May 11, 2015 166

FY 2016 Capital Investment Plan FY 16 thru FY 20 Department Electric Engineering City of Dover, Delaware Contact Electric Director Type Improvement Project # EE1606 Useful Life 15-20 years Project Name Distribution Capacitors and Controls Category Electric New Project: No Account Number: 487-8300-563.60-82 Priority 10 -- Time-Line: Status Active Total Project Cost: $250,000 Description Install distribution capacitors throughout the system to correct poor power factor on distribution circuits. Install capacitor controllers capable of two-way communication to provide real-time monitoring and remote control operation. These controllers will be capable of switching the capacitors on and off to comply with system requirements. This project will also replace outdated substation equipment, capable of advanced metering such as power factor and harmonics to further analyze system performance remotely. Lastly, distribution line recorders will be purchased and installed to provide power factor recordings to fine tune this operation. COMMENTS: The required substation equipment installation will be completed in two phases. FY2016 will upgrade the required communication equipment installed 20 years ago. FY2017 will install equipment capable of extracting system data, for enhanced performance analyzing. The completion of these two phases will ultimately reduce engineering time and costs because of remote access to all substations. In addition to this advanced metering, event report extraction and analysis, relay settings review and installation, and advancements to our 24 hour system operation center will be also be realized. FY2016 -FY2020 will be the addition of capacitor banks and controllers into the distribution system. Justification Additional capacitance is required in order to meet system power factor requirements at the Delmarva Power and Light interchange point. This was substantiated through a load-flow study conducted by Shaw in early 2004 and distribution study by Wilson & Wilson in 2006. The current capacitor controls are not providing the granularity required to turn them off and on as required to meet both the power quality requirements of our customers and DP&L requirements. Additional controls are required to fine tune the systems operation. CONSEQUENCES OF DELAYING OR ELIMINATING THIS PROJECT: Without the additional capacitor banks and more importantly controls, the City may experience a low/high voltage problem at the customer level and/or the possibility of having to pay power factor penalties to Delmarva Power and Light. Expenditures FY 16 FY 17 FY 18 FY 19 FY 20 Total Construction/Maintenance 50,000 50,000 50,000 50,000 50,000 250,000 Total 50,000 50,000 50,000 50,000 50,000 250,000 Funding Sources FY 16 FY 17 FY 18 FY 19 FY 20 Total Electric Revenue 50,000 50,000 50,000 50,000 50,000 250,000 Total 50,000 50,000 50,000 50,000 50,000 250,000 Budget Impact/Other Monday, May 11, 2015 167

FY 2016 Capital Investment Plan FY 16 thru FY 20 Department Electric Engineering City of Dover, Delaware Contact Electric Director Type Unassigned Project # EE1607 Useful Life Project Name Horsepond Road URD ~ Distribution Feeders Category Electric New Project: Yes Account Number: 487-8300-563.90-25 Priority n/a Time-Line: Status Active Total Project Cost: $67,000 Description Set two new termination poles and burying URD in between. Justification Trees continually fall and cause outages so we need to bury the line to keep the circuit tiepoint reliable. Expenditures FY 16 FY 17 FY 18 FY 19 FY 20 Total Construction/Maintenance 67,000 67,000 Total 67,000 67,000 Funding Sources FY 16 FY 17 FY 18 FY 19 FY 20 Total Electric Revenue 67,000 67,000 Total 67,000 67,000 Budget Impact/Other Monday, May 11, 2015 168

FY 2016 Capital Investment Plan FY 16 thru FY 20 Department Electric Engineering City of Dover, Delaware Contact Electric Director Type Improvement Project # EE1610 Useful Life 15-20 years Project Name Frazier 900 Circuits Category Electric New Project: Yes Account Number: 487-8300-563.90-25 Priority n/a Time-Line: FY16-FY20 Status Active Total Project Cost: $50,000 Description Replacing fault indicators for overhead and underground primaries. Justification Aids in restoring power during an outage and finding the causes of said outages. Expenditures FY 16 FY 17 FY 18 FY 19 FY 20 Total Construction/Maintenance 10,000 10,000 10,000 10,000 10,000 50,000 Total 10,000 10,000 10,000 10,000 10,000 50,000 Funding Sources FY 16 FY 17 FY 18 FY 19 FY 20 Total Electric Revenue 10,000 10,000 10,000 10,000 10,000 50,000 Total 10,000 10,000 10,000 10,000 10,000 50,000 Budget Impact/Other Monday, May 11, 2015 169

FY 2016 Capital Investment Plan FY 16 thru FY 20 Department Electric Engineering City of Dover, Delaware Contact Electric Director Type Improvement Project # EE1612 Useful Life Project Name Dover Air Force Base Substation Rebuild Category Electric New Project: Yes Account Number: 487-8300-563.60-89 Priority n/a Time-Line: FY16-FY20 Status Active Total Project Cost: $530,000 Description This project will replace two City distribution substations (Danner Farm and Lebanon) and one 69kV substation (DAFB) Planning and engineering for this project in FY2016 with new construction in 2020. Justification The existing substation was built in 1969 and has reached it expected life. The two distribution substations do not have enough real estate to expand and the 69kV substation has reached it's expected life. Additionally, the DAFB substation will be off of DAFB property which will give us more control over our substation. Security clearance badges are required to enter our current substion and have to be requested yearly for our employees. If the planning of this project is delayed or eliminated, catastrophic failures may occur. Expenditures FY 16 FY 17 FY 18 FY 19 FY 20 Total Planning/Design 30,000 30,000 Land Acquisition 500,000 500,000 Total 30,000 500,000 530,000 Funding Sources FY 16 FY 17 FY 18 FY 19 FY 20 Total Electric Revenue 30,000 500,000 530,000 Total 30,000 500,000 530,000 Budget Impact/Other Monday, May 11, 2015 170

FY 2016 Capital Investment Plan FY 16 thru FY 20 Department Electric Engineering City of Dover, Delaware Contact Electric Director Type Improvement Project # EE1617 Useful Life Project Name Oak Grove Trailer Park - Distribution Upgrade Category Electric New Project: Yes Account Number: 487-8300-563.90-25 Priority 1 Time-Line: FY-16 Status Active Total Project Cost: $78,500 Description This project will incorporate replacing existing underground distribution cable and equipment that is reaching its life expectancy. This can involve a single line section or an entire residential neighborhood. Annual outage records are reviewed and selected areas are scheduled for upgrade to underground service. Additionally, this program funds the replacement of existing underground conductors and equipment that have reached their useful life and have started failing and require replacement. Justification We have replaced a small portion of this underground distribution as it has faulted and created an emergency situation. The old style cable has faulted several times and the "live front" equipment is dangerous to line crew. The number of storm and tree-related outages have been greatly reduced under this program and further improvements can be made to insure the most reliable electric service possible. Reliability has become one of most important factors to electric customers, second only to safety. The utility has responded by attempting to provide the most reliable system possible. Underground cable replacements are necessary as the useful, reliable, life of the original underground cable was 20-30 years. By proactively replacing this cable we will minimize outages and improve system reliability. In addition to cable replacement, overhead lines are replaced with underground to minimize outages caused by tree growth or animal contact. Lastly, overhead lines that have reached the end of their useful life are replaced with underground instead of rebuilding the overhead. CONSEQUENCES OF DELAYING OR ELIMINATING THIS PROJECT: Continued outages lead to increased complaints from our customers and will lead to customer dissatisfaction. There will be increased costs for repairs made under outage conditions as well as loss of electric revenue. Expenditures FY 16 FY 17 FY 18 FY 19 FY 20 Total Construction/Maintenance 78,500 78,500 Total 78,500 78,500 Funding Sources FY 16 FY 17 FY 18 FY 19 FY 20 Total Electric Revenue 78,500 78,500 Total 78,500 78,500 Budget Impact/Other Monday, May 11, 2015 171

FY 2016 Capital Investment Plan FY 16 thru FY 20 Department Electric Engineering City of Dover, Delaware Contact Electric Director Type Improvement Project # EE1618 Useful Life Project Name Lakeland Laurel Point - Distribution Upgrades Category Electric New Project: Yes Account Number: 487-8300-563.90-25 Priority 4 Time-Line: FY-16 Status Active Total Project Cost: $63,000 Description This project involves the systemic replacement of overhead lines with underground lines. Whenever services are being moved, wire is damaged, trees cause a high number of outages, or development is in progress, and when it is beneficial to the Utility to convert to underground. This can involve a single line section or an entire residential neighborhood. Annual outage records are reviewed and selected areas are scheduled for upgrade to underground service. Additionally, this program funds the replacement of existing underground conductors and equipment that have reached their useful life and have started failing and require replacement. Justification The number of storm and tree-related outages have been greatly reduced under this program and further improvements can be made to insure the most reliable electric service possible. Reliability has become one of most important factors to electric customers, second only to safety. The utility has responded by attempting to provide the most reliable system possible. Underground cable replacements are necessary as the useful, reliable, life of the original underground cable was 20-30 years. By proactively replacing this cable we will minimize outages and improve system reliability. In addition to cable replacement, overhead lines are replaced with underground to minimize outages caused by tree growth or animal contact. Lastly, overhead lines that have reached the end of their useful life are replaced with underground instead of rebuilding the overhead. CONSEQUENCES OF DELAYING OR ELIMINATING THIS PROJECT: Continued outages lead to increased complaints from our customers and will lead to customer dissatisfaction. There will be increased costs for repairs made under outage conditions as well as loss of electric revenue. Expenditures FY 16 FY 17 FY 18 FY 19 FY 20 Total Construction/Maintenance 63,000 63,000 Total 63,000 63,000 Funding Sources FY 16 FY 17 FY 18 FY 19 FY 20 Total Electric Revenue 63,000 63,000 Total 63,000 63,000 Budget Impact/Other Monday, May 11, 2015 172

FY 2016 Capital Investment Plan FY 16 thru FY 20 Department Electric Engineering City of Dover, Delaware Contact Electric Director Type Improvement Project # EE1619 Useful Life Project Name RT 8 / Mifflin Road Crossing - Dist. Upgrade Category Electric New Project: Yes Account Number: 487-8300-563.90-25 Priority 5 Time-Line: FY-16 Status Active Total Project Cost: $51,500 Description This project will eliminate the distibution system causing outages by wires coming in contact with each other during heavy winds or storm conditions as well as in preparation of future distribution projects. This project involves the systemic replacement of overhead lines with underground lines. Whenever services are being moved, wire is damaged, trees cause a high number of outages, or development is in progress, and when it is beneficial to the Utility to convert to underground. This can involve a single line section or an entire residential neighborhood. Annual outage records are reviewed and selected areas are scheduled for upgrade to underground service. Additionally, this program funds the replacement of existing underground conductors and equipment that have reached their useful life and have started failing and require replacement. Justification The number of storm and tree-related outages have been greatly reduced under this program and further improvements can be made to insure the most reliable electric service possible. Reliability has become one of most important factors to electric customers, second only to safety. The utility has responded by attempting to provide the most reliable system possible. Underground cable replacements are necessary as the useful, reliable, life of the original underground cable was 20-30 years. By proactively replacing this cable we will minimize outages and improve system reliability. In addition to cable replacement, overhead lines are replaced with underground to minimize outages caused by tree growth or animal contact. Lastly, overhead lines that have reached the end of their useful life are replaced with underground instead of rebuilding the overhead. CONSEQUENCES OF DELAYING OR ELIMINATING THIS PROJECT: Continued outages lead to increased complaints from our customers and will lead to customer dissatisfaction. There will be increased costs for repairs made under outage conditions as well as loss of electric revenue. Expenditures FY 16 FY 17 FY 18 FY 19 FY 20 Total Construction/Maintenance 51,500 51,500 Total 51,500 51,500 Funding Sources FY 16 FY 17 FY 18 FY 19 FY 20 Total Electric Revenue 51,500 51,500 Total 51,500 51,500 Budget Impact/Other Monday, May 11, 2015 173

FY 2016 Capital Investment Plan FY 16 thru FY 20 Department Electric Engineering City of Dover, Delaware Contact Electric Director Type Improvement Project # EE1620 Useful Life Project Name Route 8 Taps - Distribution Upgrade Category Electric New Project: Yes Account Number: 487-8300-563.90-25 Priority 7 -- Time-Line: FY-16 Status Active Total Project Cost: $38,500 Description This project will eliminate the remaining overhead distribution from Cranberry Run, west along RT 8. These taps were left over from the Dover High Scool Project. This project involves the systemic replacement of overhead lines with underground lines. Whenever services are being moved, wire is damaged, trees cause a high number of outages, or development is in progress, and when it is beneficial to the Utility to convert to underground. This can involve a single line section or an entire residential neighborhood. Annual outage records are reviewed and selected areas are scheduled for upgrade to underground service. Additionally, this program funds the replacement of existing underground conductors and equipment that have reached their useful life and have started failing and require replacement. Justification The number of storm and tree-related outages have been greatly reduced under this program and further improvements can be made to insure the most reliable electric service possible. Reliability has become one of most important factors to electric customers, second only to safety. The utility has responded by attempting to provide the most reliable system possible. Underground cable replacements are necessary as the useful, reliable, life of the original underground cable was 20-30 years. By proactively replacing this cable we will minimize outages and improve system reliability. In addition to cable replacement, overhead lines are replaced with underground to minimize outages caused by tree growth or animal contact. Lastly, overhead lines that have reached the end of their useful life are replaced with underground instead of rebuilding the overhead. CONSEQUENCES OF DELAYING OR ELIMINATING THIS PROJECT: Continued outages lead to increased complaints from our customers and will lead to customer dissatisfaction. There will be increased costs for repairs made under outage conditions as well as loss of electric revenue. Expenditures FY 16 FY 17 FY 18 FY 19 FY 20 Total Construction/Maintenance 38,500 38,500 Total 38,500 38,500 Funding Sources FY 16 FY 17 FY 18 FY 19 FY 20 Total Electric Revenue 38,500 38,500 Total 38,500 38,500 Budget Impact/Other Monday, May 11, 2015 174

FY 2016 Capital Investment Plan FY 16 thru FY 20 Department Electric Engineering City of Dover, Delaware Contact Electric Director Type Improvement Project # EE1621 Useful Life Project Name Townsend Brothers - Distribution Upgrade Category Electric New Project: Yes Account Number: 487-8300-563.90-25 Priority 6 -- Time-Line: FY-16 Status Active Total Project Cost: $14,500 Description This project will elimate the remaining overhead distribution off S. Governors Avenue. This overhead distribution was left over from the State of Delaware's Governors Avenue Project in which all other overhead distribution was placed underground. Existing Townsend Brothers upgraded their service and was placed underground so this overhead is between two sections of underground distribution. This project involves the systemic replacement of overhead lines with underground lines. Whenever services are being moved, wire is damaged, trees cause a high number of outages, or development is in progress, and when it is beneficial to the Utility to convert to underground. This can involve a single line section or an entire residential neighborhood. Annual outage records are reviewed and selected areas are scheduled for upgrade to underground service. Additionally, this program funds the replacement of existing underground conductors and equipment that have reached their useful life and have started failing and require replacement. Justification The number of storm and tree-related outages have been greatly reduced under this program and further improvements can be made to insure the most reliable electric service possible. Reliability has become one of most important factors to electric customers, second only to safety. The utility has responded by attempting to provide the most reliable system possible. Underground cable replacements are necessary as the useful, reliable, life of the original underground cable was 20-30 years. By proactively replacing this cable we will minimize outages and improve system reliability. In addition to cable replacement, overhead lines are replaced with underground to minimize outages caused by tree growth or animal contact. Lastly, overhead lines that have reached the end of their useful life are replaced with underground instead of rebuilding the overhead. Expenditures FY 16 FY 17 FY 18 FY 19 FY 20 Total Construction/Maintenance 14,500 14,500 Total 14,500 14,500 Funding Sources FY 16 FY 17 FY 18 FY 19 FY 20 Total Electric Revenue 14,500 14,500 Total 14,500 14,500 Budget Impact/Other Monday, May 11, 2015 175

FY 2016 Capital Investment Plan FY 16 thru FY 20 Department Electric Engineering City of Dover, Delaware Contact Electric Director Type Improvement Project # EE1622 Useful Life Project Name Persimmon Tree Apartments - Dist. Upgrade Category Electric New Project: Yes Account Number: 487-8300-563.90-25 Priority 3 Time-Line: FY-16 Status Active Total Project Cost: $62,000 Description This project will incorporate replacing existing underground distribution cable and equipment that is reaching its life expectancy. This project involves the systemic replacement of overhead lines with underground lines. Whenever services are being moved, wire is damaged, trees cause a high number of outages, or development is in progress, and when it is beneficial to the Utility to convert to underground. This can involve a single line section or an entire residential neighborhood. Annual outage records are reviewed and selected areas are scheduled for upgrade to underground service. Additionally, this program funds the replacement of existing underground conductors and equipment that have reached their useful life and have started failing and require replacement. Justification We have replaced a small portion of this underground distribution as it has faulted creating an emergency situation. The old style cable has faulted several times and the "live front" equipment is dangerous to our linecrew. The number of storm and tree-related outages have been greatly reduced under this program and further improvements can be made to insure the most reliable electric service possible. Reliability has become one of most important factors to electric customers, second only to safety. The utility has responded by attempting to provide the most reliable system possible. Underground cable replacements are necessary as the useful, reliable, life of the original underground cable was 20-30 years. By proactively replacing this cable we will minimize outages and improve system reliability. In addition to cable replacement, overhead lines are replaced with underground to minimize outages caused by tree growth or animal contact. Lastly, overhead lines that have reached the end of their useful life are replaced with underground instead of rebuilding the overhead. CONSEQUENCES OF DELAYING OR ELIMINATING THIS PROJECT: Continued outages lead to increased complaints from our customers and will lead to customer dissatisfaction. There will be increased costs for repairs made under outage conditions as well as loss of electric revenue Expenditures FY 16 FY 17 FY 18 FY 19 FY 20 Total Construction/Maintenance 62,000 62,000 Total 62,000 62,000 Funding Sources FY 16 FY 17 FY 18 FY 19 FY 20 Total Electric Revenue 62,000 62,000 Total 62,000 62,000 Budget Impact/Other Monday, May 11, 2015 176

FY 2016 Capital Investment Plan FY 16 thru FY 20 Department Electric Engineering City of Dover, Delaware Contact Electric Director Type Improvement Project # EE1627 Useful Life Project Name Dover East Estates - Distribution Upgrade Category Electric New Project: Yes Account Number: 487-8300-563.90-25 Priority 2 Time-Line: FY-16 Status Active Total Project Cost: $130,000 Description This project will incorporate replacing existing underground distribution cable and equipment that is reaching its life expectancy. This can involve a single line section or an entire residential neighborhood. Annual outage records are reviewed and selected areas are scheduled for upgrade to underground service. Additionally, this program funds the replacement of existing underground conductors and equipment that have reached their useful life and have started failing and require replacement. Justification We have replaced a small portion of this underground distribution as it has faulted and created an emergency situation. The old style cable has faulted several times and the "live front equipment is dangerous to our linecrew. The number of storm and tree-related outages have been greatly reduced under this program and further improvements can be made to insure the most reliable electric service possible. Reliability has become one of most important factors to electric customers, second only to safety. The utility has responded by attempting to provide the most reliable system possible. Underground cable replacements are necessary as the useful, reliable, life of the original underground cable was 20-30 years. By proactively replacing this cable we will minimize outages and improve system reliability. In addition to cable replacement, overhead lines are replaced with underground to minimize outages caused by tree growth or animal contact. Lastly, overhead lines that have reached the end of their useful life are replaced with underground instead of rebuilding the overhead. CONSEQUENCES OF DELAYING OR ELIMINATING THIS PROJECT: Continued outages lead to increased complaints from our customers and will lead to customer dissatisfaction. There will be increased costs for repairs made under outage conditions as well as loss of electric revenue. Expenditures FY 16 FY 17 FY 18 FY 19 FY 20 Total Construction/Maintenance 130,000 130,000 Total 130,000 130,000 Funding Sources FY 16 FY 17 FY 18 FY 19 FY 20 Total Electric Revenue 130,000 130,000 Total 130,000 130,000 Budget Impact/Other Monday, May 11, 2015 177

FY 2016 Capital Investment Plan FY 16 thru FY 20 Department Electric Engineering City of Dover, Delaware Contact Electric Director Type Maintenance Project # EE1630 Useful Life Project Name Reed Street Building Roof Repair/Replacement Category Electric New Project: Yes Account Number: 487-8400-564.40-31 Priority n/a Time-Line: FY-16 Status Active Total Project Cost: $201,800 Description Roof repairs or replacement for the building located at 5 E. Reed Street, Weyandt Hall. The Space Needs Assessment may change the necessity of this. There has been discussion of the building possibly being sold or demolished. Justification The roof leaks and has had multiple patchwork repairs done by Facilities Maintenance staff over the years. Expenditures FY 16 FY 17 FY 18 FY 19 FY 20 Total Construction/Maintenance 201,800 201,800 Total 201,800 201,800 Funding Sources FY 16 FY 17 FY 18 FY 19 FY 20 Total Electric Revenue 201,800 201,800 Total 201,800 201,800 Budget Impact/Other Monday, May 11, 2015 178

FY 2016 Capital Investment Plan FY 16 thru FY 20 Department Electric Engineering City of Dover, Delaware Contact Electric Director Type Improvement Project # EE1631 Useful Life Project Name North Street OH to UG (Governors to Queen) Category Electric New Project: Yes Account Number: Priority n/a Time-Line: Status Active Total Project Cost: $100,000 Description This project is to bury the overhead electric lines on W. North Street from S. Governors Avenue to S. Queen Street. All poles will be removed and 16 street lights installed. Verizon and Comcast lines will also have to be buried in order for the poles to be removed. Justification Expenditures FY 16 FY 17 FY 18 FY 19 FY 20 Total Construction/Maintenance 100,000 100,000 Total 100,000 100,000 Funding Sources FY 16 FY 17 FY 18 FY 19 FY 20 Total Electric Revenue 100,000 100,000 Total 100,000 100,000 Budget Impact/Other Monday, May 11, 2015 179

FY 2016 Capital Investment Plan FY 16 thru FY 20 Department Electric Engineering City of Dover, Delaware Contact Electric Director Type Improvement Project # EE1702 Useful Life 5-10 years Project Name System Automation Category Electric New Project: No Account Number: 487-8300-563.70-28 Priority n/a Time-Line: FY17-FY21 Status Active Total Project Cost: $600,000 Description Design, develop, and install a self-healing or "smart" distribution system. Justification This project will include an engineering study to be performed using a system model to develop a scheme that will allow the distribution system to be self-healing in the event of a fault. Following the study, automation equipment will be purchased to detect problems on the system, isolate the affected area, and reenergize lines not affected. This will improve the reliability of the city’s local electric grid, minimize customer outages, and increase customer satisfaction. Expenditures FY 16 FY 17 FY 18 FY 19 FY 20 Total Planning/Design 0 150,000 150,000 150,000 150,000 600,000 Total 0 150,000 150,000 150,000 150,000 600,000 Funding Sources FY 16 FY 17 FY 18 FY 19 FY 20 Total Electric Revenue 0 150,000 150,000 150,000 150,000 600,000 Total 0 150,000 150,000 150,000 150,000 600,000 Budget Impact/Other Monday, May 11, 2015 180

FY 2016 Capital Investment Plan FY 16 thru FY 20 Department Electric Engineering City of Dover, Delaware Contact Electric Director Type Improvement Project # EE1810 Useful Life 20-25 years Project Name Distribution Upgrades Category Electric New Project: No Account Number: 487-8300-563.90-25 Priority 1 Time-Line: On Going Maint. Status Active Total Project Cost: $1,500,000 Description This project involves the systemic replacement of overhead lines with underground lines whenever services are being moved, wire is damaged, trees cause a high number of outages, or development is in progress, and when it is beneficial to the Utility to convert to underground. This can involve a single line section or an entire residential neighborhood. Annual outage records are reviewed and selected areas are scheduled for upgrade to underground service. Additionally, this program funds the replacement of existing underground conductors and equipment that have reached their useful life and have started failing and require replacement. This account is used to upgrade any trouble areas during the year. Justification The number of storm and tree-related outages have been greatly reduced under this program and further improvements can be made to insure the most reliable electric service possible. Reliability has become one of most important factors to electric customers, second only to safety. The utility has responded by attempting to provide the most reliable system possible. Underground cable replacements are necessary as the useful, reliable, life of the original underground cable was 20-30 years. By proactively replacing this cable we will minimize outages and improve system reliability. In addition to cable replacement, overhead lines are replaced with underground to minimize outages caused by tree growth or animal contact. Lastly, overhead lines that have reached the end of their useful life are replaced with underground instead of rebuilding the overhead. CONSEQUENCES OF DELAYING OR ELIMINATING THIS PROJECT: Continued outages lead to increased complaints from our customers and will lead to customer dissatisfaction. There will be increased costs for repairs made under outage conditions as well as loss of electric revenue. Expenditures FY 16 FY 17 FY 18 FY 19 FY 20 Total Construction/Maintenance 0 0 300,000 600,000 600,000 1,500,000 Total 0 0 300,000 600,000 600,000 1,500,000 Funding Sources FY 16 FY 17 FY 18 FY 19 FY 20 Total Electric Revenue 0 0 300,000 600,000 600,000 1,500,000 Total 0 0 300,000 600,000 600,000 1,500,000 Budget Impact/Other Monday, May 11, 2015 181

FY 2016 Capital Investment Plan FY 16 thru FY 20 Department Electric T & D City of Dover, Delaware Contact Electric Director Type Improvement Project # EE1616 Useful Life 30+ years Project Name New Developments Category Electric New Project: No Account Number: 4878200-562.Several Priority 1 Time-Line: Continuous Status Active Total Project Cost: $12,279,000 Description This project purchases materials and equipment that are used to provide electric service to new housing developments, businesses, and industrial developments. Additionally, a portion of this expense is offset by the extension payments whereby new developers pay a $1,600 per residential lot connection fee, or business and industrial developers pay the total material expense for line extensions. This is an ongoing project and affects three separate accounts: 487-8200-562.60-31 487-8200-562.60-34 487-8200-562.60-46 COMMENTS: Not all new development projects are known during budget preparation, as some will arise during the year. Justification During the course of each budget year, new developers request line extensions for new electric projects. Some are new projects, while other projects may have received plan approval previously but were not completed for any number of reasons. Expenditures FY 16 FY 17 FY 18 FY 19 FY 20 Total Construction/Maintenance 2,279,000 2,500,000 2,500,000 2,500,000 2,500,000 12,279,000 Total 2,279,000 2,500,000 2,500,000 2,500,000 2,500,000 12,279,000 Funding Sources FY 16 FY 17 FY 18 FY 19 FY 20 Total Developer Contribution 1,900,000 1,900,000 Electric Revenue 379,000 2,500,000 2,500,000 2,500,000 2,500,000 10,379,000 Total 2,279,000 2,500,000 2,500,000 2,500,000 2,500,000 12,279,000 Budget Impact/Other Monday, May 11, 2015 182

FY 2016 Capital Investment Plan FY 16 thru FY 20 Department Electric T & D City of Dover, Delaware Contact Electric Director Type Unassigned Project # EE1623 Useful Life 20-25 years Project Name DNREC R&R Metering ~ New Development Category Electric New Project: Yes Account Number: 4878200-562.Several Priority n/a Time-Line: FY-16 Status Active Total Project Cost: $41,000 Description Change existing primary metering to secondary metering rate. This project was originally requested by the State of Delaware for FY15. They did not get their funding for FY15; therefore, they requested it be pushed to FY16 Justification The State of Delaware Facilities Management is requesting the change of service because they do not have the qualified personnel to maintain the high voltage system Expenditures FY 16 FY 17 FY 18 FY 19 FY 20 Total Construction/Maintenance 41,000 41,000 Total 41,000 41,000 Funding Sources FY 16 FY 17 FY 18 FY 19 FY 20 Total Electric Revenue 41,000 41,000 Total 41,000 41,000 Budget Impact/Other Monday, May 11, 2015 183

FY 2016 Capital Investment Plan FY 16 thru FY 20 Department Electric T & D City of Dover, Delaware Contact Electric Director Type Improvement Project # EE1625 Useful Life Project Name Public Works Wetland Project Category Electric New Project: Yes Account Number: 4878200-562.Several Priority 8 -- Time-Line: FY-16 Status Active Total Project Cost: $78,000 Description This project request form the Public Works Department is due to environmental concerns. The PW2 site will be redeveloped to increase stormwater quality entering Silver Lake. The improvements include relocating the greenhouse, Grounds Division office, Equipment garage, including small engine repair to Schutte Park. The existing water production well will remain on site. The site will be converted to a stabilized park with water quality improvements for stormwater. Justification Expenditures FY 16 FY 17 FY 18 FY 19 FY 20 Total Construction/Maintenance 78,000 78,000 Total 78,000 78,000 Funding Sources FY 16 FY 17 FY 18 FY 19 FY 20 Total Electric Revenue 78,000 78,000 Total 78,000 78,000 Budget Impact/Other Monday, May 11, 2015 184

FY 2016 Capital Investment Plan FY 16 thru FY 20 Department Electric T & D City of Dover, Delaware Contact Electric Director Type Improvement Project # EE1626 Useful Life Project Name Washington Street Lights - New Development Category Electric New Project: Yes Account Number: 4878200-562.60-34 Priority 9 -- Time-Line: FY-16 Status Active Total Project Cost: $40,000 Description This project request from the City Manager involves the installation of new 150 Watt HPS decorative light and removal of roadway lights on wooden poles. Justification Existing lights are on wooden poles and placing streetlights along the road will increase aesthetics of the area. Expenditures FY 16 FY 17 FY 18 FY 19 FY 20 Total Construction/Maintenance 40,000 40,000 Total 40,000 40,000 Funding Sources FY 16 FY 17 FY 18 FY 19 FY 20 Total Electric Revenue 40,000 40,000 Total 40,000 40,000 Budget Impact/Other Monday, May 11, 2015 185

FY 2016 Capital Investment Plan FY 16 thru FY 20 Department Electric T & D City of Dover, Delaware Contact Electric Director Type Improvement Project # EE1628 Useful Life Project Name NBR Properties, LLC - New Development Category Electric New Project: Yes Account Number: 4878200-562.Several Priority n/a Time-Line: FY-16 Status Active Total Project Cost: $19,000 Description This is a new project taken from a list of projects submitted to the Planning Department. Design is based on preliminary assumptions as no electrical load information has been submitted by the developer. Justification New project submitted to Planning Commission. Expenditures FY 16 FY 17 FY 18 FY 19 FY 20 Total Construction/Maintenance 19,000 19,000 Total 19,000 19,000 Funding Sources FY 16 FY 17 FY 18 FY 19 FY 20 Total Electric Revenue 19,000 19,000 Total 19,000 19,000 Budget Impact/Other Monday, May 11, 2015 186

FY 2016 Capital Investment Plan FY 16 thru FY 20 Department Electric T & D City of Dover, Delaware Contact Electric Director Type Improvement Project # EE1629 Useful Life Project Name Tall Pines Condos - New Development Category Electric New Project: Yes Account Number: 4878200-562.Several Priority n/a Time-Line: FY-16 Status Active Total Project Cost: $43,000 Description This is a new project taken from a list of projects submitted to the Planning Department. Design is based on preliminary assumptions as no electrical load information has been submitted by the developer. Justification New project submitted to Planning Commission. Expenditures FY 16 FY 17 FY 18 FY 19 FY 20 Total Construction/Maintenance 43,000 43,000 Total 43,000 43,000 Funding Sources FY 16 FY 17 FY 18 FY 19 FY 20 Total Electric Revenue 43,000 43,000 Total 43,000 43,000 Budget Impact/Other Monday, May 11, 2015 187

FY 2016 Capital Investment Plan FY 16 thru FY 20 Department Power Plant City of Dover, Delaware Contact Power Plant Manager Type Maintenance Project # EG1504 Useful Life Project Name McKee Run Unit 3 Boiler Systems Category Electric New Project: No Account Number: 487-8101-591.40-31 Priority 1 Time-Line: Status Active Total Project Cost: $803,000 Description This Project was developed to perform inspections and repairs to the Unit 3 boiler on a predetermined frequency based on unit operating hours, required regulatory inspection intervals, and known equipment condition. In general, most work activities are those requiring planned outages and therefore will be scheduled to coincide with planned outages. For 2016, work identified includes the following: Replacement of waterwall tubes Note: Project costs in years beyond 2016 are shown for expense planning purposes and represent future projects related to this equipment that are anticipated based on expected operation. Justification Critical system equipment represents components that, if they fail, will result in loss of generation and or capacity. Routine evaluation of the condition of critical components will allow for proper prioritization of maintenance activities and resources. Delaying this project could result in the failure of critical unit equipment and subsequent loss of generation and or capacity. More importantly, component failure could also result in safety risk to personnel. Expenditures FY 16 FY 17 FY 18 FY 19 FY 20 Total Construction/Maintenance 42,000 382,000 0 299,000 80,000 803,000 Total 42,000 382,000 0 299,000 80,000 803,000 Funding Sources FY 16 FY 17 FY 18 FY 19 FY 20 Total Electric Revenue 42,000 382,000 0 299,000 80,000 803,000 Total 42,000 382,000 0 299,000 80,000 803,000 Budget Impact/Other Monday, May 11, 2015 188

FY 2016 Capital Investment Plan FY 16 thru FY 20 Department Power Plant City of Dover, Delaware Contact Power Plant Manager Type Maintenance Project # EG1601 Useful Life Unknown Project Name McKee Run Building Equipment Replacement Category Electric New Project: No Account Number: 487-8101-591.40-31 Priority 8 -- Time-Line: Status Active Total Project Cost: $293,000 Description This project includes the replacement of certain building support systems that are expected to reach their useful life. The specific building systems to be addressed in 2016 include: -Supervisors Office Roof top Air Conditioners -Rebuild 2A Air Compressor Note: Project costs in years beyond 2016 are shown for expense planning purposes and represent future projects related to this equipment that are anticipated based on expected operation. Justification This project is required to fund the replacement of equipment that has reached its design life. Continuing increase in the costs to maintain this equipment will result from the lack of funding this project. In addition, critical temperature control is necessary to keep plant instrumentation located in the control room at acceptable operating conditions. Replacement of the control room air conditioners is scheduled for 2017. Allowing the temperature to exceed design conditions could contribute to reduced control equipment life and possible reduced unit reliability. Expenditures FY 16 FY 17 FY 18 FY 19 FY 20 Total Construction/Maintenance 42,000 59,000 99,000 27,000 66,000 293,000 Total 42,000 59,000 99,000 27,000 66,000 293,000 Funding Sources FY 16 FY 17 FY 18 FY 19 FY 20 Total Electric Revenue 42,000 59,000 99,000 27,000 66,000 293,000 Total 42,000 59,000 99,000 27,000 66,000 293,000 Budget Impact/Other Monday, May 11, 2015 189

FY 2016 Capital Investment Plan FY 16 thru FY 20 Department Power Plant City of Dover, Delaware Contact Power Plant Manager Type Maintenance Project # EG1607 Useful Life Project Name McKee Run Unit 3 Auxiliary System Components Category Electric New Project: No Account Number: 487-8101-591.40-31 Priority 2 Time-Line: Status Active Total Project Cost: $1,014,000 Description This project will perform inspections and repairs of Unit 3 auxiliary system components focusing on critical components. Components identified that will be addressed in 2016 include the #3 and 4 service water pumps, heat exchanger and piping safety valves, and turbine supervisory instrumentation replacement. Note: Project costs in years beyond 2016 are shown for expense planning purposes and represent future projects related to this equipment that are anticipated based on expected operation. Justification Critical auxiliary systems components are those components that, if they were to fail, their failure could result in unit load reduction or outage with consequential loss of capacity and / or generation although they would not individually affect the long range financial viability of the unit. Addressing these assets in a systematic fashion will result in minimizing forced outages and eliminating major maintenance expenses associated with component failure. Performing work as scheduled will also levelize maintenance expenditures. Delaying this project could result in the failure of critical unit equipment and subsequent loss of generation and/ or capacity. Expenditures FY 16 FY 17 FY 18 FY 19 FY 20 Total Construction/Maintenance 135,000 128,000 261,000 277,000 213,000 1,014,000 Total 135,000 128,000 261,000 277,000 213,000 1,014,000 Funding Sources FY 16 FY 17 FY 18 FY 19 FY 20 Total Electric Revenue 135,000 128,000 261,000 277,000 213,000 1,014,000 Total 135,000 128,000 261,000 277,000 213,000 1,014,000 Budget Impact/Other Monday, May 11, 2015 190

FY 2016 Capital Investment Plan FY 16 thru FY 20 Department Power Plant City of Dover, Delaware Contact Power Plant Manager Type Maintenance Project # EG1608 Useful Life Project Name McKee Run & VanSant CEMS Upgrade Category Electric New Project: Yes Account Number: 487-8101-591.40-31 Priority 3 Time-Line: Status Active Total Project Cost: $89,000 Description This fund will acquire updated CEMS software and computer hardware to support environmental compliance monitoring, recording and reporting functions. Computer hardware is dated (c. 2009) and needs to be replaced with current technology. Newer Software program available has greater functionality and reporting functions. Justification These are critical system components which can directly impact the Unit operation. Their failure to operate will result in loss of generation and capacity or create environmental reporting issues. Addressing these assets in a systematic fashion will result in minimizing forced outages and eliminating major maintenance expenses associated with component failure. Computer hardware is dated (c. 2009) and needs to be replaced with current technology. Newer Software program available has greater functionality and reporting functions. Expenditures FY 16 FY 17 FY 18 FY 19 FY 20 Total Construction/Maintenance 89,000 89,000 Total 89,000 89,000 Funding Sources FY 16 FY 17 FY 18 FY 19 FY 20 Total Electric Revenue 89,000 89,000 Total 89,000 89,000 Budget Impact/Other Monday, May 11, 2015 191

FY 2016 Capital Investment Plan FY 16 thru FY 20 Department Power Plant City of Dover, Delaware Contact Power Plant Manager Type Maintenance Project # EG1609 Useful Life Unknown Project Name Van Sant Unit 11 Component Replacements Category Electric New Project: No Account Number: 487-8101-591.40-31 Priority 4 Time-Line: Status Active Total Project Cost: $415,000 Description This fund was developed to perform inspections and repairs to the VanSant Unit 11 auxiliary equipment on a predetermined frequency based on unit operating hours, required regulatory inspection intervals, and known equipment condition. Work to be performed to include the following equipment: 2016 - Replace acid and caustic pumps and refurbish the emergency DC (Black Start) oil pump Note: Project costs in years beyond 2016 are shown for expense planning purposes and represent future projects related to this equipment that are anticipated based on expected operation. Justification This project is required to fund the replacement of capital items that are expected to reach their useful life and will need to be replaced or refurbished to maintain plant system and unit reliability. Extended equipment and /or unit outage time will result from lack of funding this project. This will have a direct effect on the cost of energy during the extended outage time as well as increase future energy capacity charges. Expenditures FY 16 FY 17 FY 18 FY 19 FY 20 Total Construction/Maintenance 21,000 89,000 0 0 305,000 415,000 Total 21,000 89,000 0 0 305,000 415,000 Funding Sources FY 16 FY 17 FY 18 FY 19 FY 20 Total Electric Revenue 21,000 89,000 0 0 305,000 415,000 Total 21,000 89,000 0 0 305,000 415,000 Budget Impact/Other Monday, May 11, 2015 192

FY 2016 Capital Investment Plan FY 16 thru FY 20 Department Power Plant City of Dover, Delaware Contact Power Plant Manager Type Maintenance Project # EG1610 Useful Life Project Name Plant Systems Safety & Compliance Improvements Category Electric New Project: Yes Account Number: 487-8101-591.40-31 Priority 6 -- Time-Line: Status Active Total Project Cost: $306,000 Description This project will install video cameras to replace outdated cameras and install additional cameras at McKee Run. The project will also install cameras at VanSant Generating Station where there currently have none installed. Additionally, the project will replace outdated radios and replace deteriorating fencing at the McKee Run and VanSant Generating Stations. The installation of this equipment will aid in improving plant security at both sites and improve personnel safety at both sites. Justification This project is required to improve overall surveillance coverage and security at both McKee Run and VanSant generating plant sites. Currently, VanSant Generating Station does not have any video surveillance. Expenditures FY 16 FY 17 FY 18 FY 19 FY 20 Total Construction/Maintenance 157,000 112,000 37,000 306,000 Total 157,000 112,000 37,000 306,000 Funding Sources FY 16 FY 17 FY 18 FY 19 FY 20 Total Electric Revenue 157,000 112,000 37,000 306,000 Total 157,000 112,000 37,000 306,000 Budget Impact/Other Monday, May 11, 2015 193

FY 2016 Capital Investment Plan FY 16 thru FY 20 Department Power Plant City of Dover, Delaware Contact Power Plant Manager Type Maintenance Project # EG1611 Useful Life Unknown Project Name McKee Run & VanSant - Preservation of Structures Category Electric New Project: No Account Number: 487-8101-591.40-31 Priority 9 -- Time-Line: Status Active Total Project Cost: $676,000 Description This project involves the preservation of plant structures in order to prevent deterioration of building structural steel and equipment subject to corrosion due to the working environment. Included will be the sandblasting and painting of identified structures and equipment along with the removal of equipment that has been retired in place. This work is an ongoing effort spanning multiple years. Work identified includes the following: 2016 - Painting Unit 3 stack and circulating piping at the Unit 3 cooling tower. Note: Project costs in years beyond 2016 are shown for expense planning purposes and represent future projects related to this equipment that are anticipated based on expected operation. Justification Structural steel painting is needed in various areas throughout the plant proper as well as various outbuildings on the plant property to maintain the physical building structures and equipment in an acceptable condition and prevent further deterioration. This project represents a minimum preservation and maintenance of structures consistent with the expected life of the stations. Consequences of delaying or eliminating this project will result in the accelerated deterioration of plant structures and larger future costs associated with structural repairs. Expenditures FY 16 FY 17 FY 18 FY 19 FY 20 Total Construction/Maintenance 215,000 261,000 0 200,000 0 676,000 Total 215,000 261,000 0 200,000 0 676,000 Funding Sources FY 16 FY 17 FY 18 FY 19 FY 20 Total Electric Revenue 215,000 261,000 0 200,000 0 676,000 Total 215,000 261,000 0 200,000 0 676,000 Budget Impact/Other Monday, May 11, 2015 194

FY 2016 Capital Investment Plan FY 16 thru FY 20 Department Power Plant City of Dover, Delaware Contact Power Plant Manager Type Maintenance Project # EG1612 Useful Life Unknown Project Name Unit 3 Cooling Water Line Repairs Category Electric New Project: No Account Number: 487-8101-591.40-31 Priority 5 Time-Line: Status Active Total Project Cost: $469,000 Description This project will inspect and repair the underground cooling water piping from the Unit 3 condenser to the cooling tower. An inspection of the pipe condition will be performed on this pipe in the fall of 2015 to develop a repair/replace action plan to address the suitability for continued operation as well as extending the life of the piping beyond 2016. The actual repairs will be completed in the spring of 2016. Completion of the project as scheduled will eliminate the need to add additional O&M funding for emergency repairs in future years. The budgeted costs assume only repairs to one of the two (2) lines from the cooling tower to the plant exterior wall. Justification The condition of the underground cooling water pipe line has required numerous repairs over the life of the plant and the pipe lining has exceeded its useful life of 20 years. It is expected that the repair frequency will accelerate over the next several years as the internal pipe coating continues to degrade. Delaying this project beyond 2016 will increase the risk of a failure causing an extended unit outage to repair or replace the failed pipe as well as incurring water spillage to the surrounding ground. Additional budget dollars will need to be allocated to make the repairs of the failed piping. Expenditures FY 16 FY 17 FY 18 FY 19 FY 20 Total Construction/Maintenance 469,000 469,000 Total 469,000 469,000 Funding Sources FY 16 FY 17 FY 18 FY 19 FY 20 Total Electric Revenue 469,000 469,000 Total 469,000 469,000 Budget Impact/Other Monday, May 11, 2015 195

FY 2016 Capital Investment Plan FY 16 thru FY 20 Department Power Plant City of Dover, Delaware Contact Power Plant Manager Type Maintenance Project # EG1613 Useful Life Unknown Project Name McKee Run Unit 3 Stack Repairs Category Electric New Project: No Account Number: 487-8101-591.40-31 Priority 7 -- Time-Line: Status Active Total Project Cost: $485,000 Description An internal and external inspection was performed by an outside consultant in 2012. From this inspection a work scope has been developed to incorporate repairs required to extend the life of the stack for 10 to 15 yrs. Complete replacement of the stack lining will be made in order to allow continued operation of Unit 3. Justification Extensive deterioration of the stack lining was found during the fall 2012 planned inspection of the stack. This will require significant repair and replacement of the stack lining. Delaying necessary repairs could lead to more costly repairs in the future and possible unplanned forced outage on Unit 3. Earnings from the sale of capacity may also be affected. Expenditures FY 16 FY 17 FY 18 FY 19 FY 20 Total Construction/Maintenance 485,000 485,000 Total 485,000 485,000 Funding Sources FY 16 FY 17 FY 18 FY 19 FY 20 Total Electric Revenue 485,000 485,000 Total 485,000 485,000 Budget Impact/Other Monday, May 11, 2015 196

FY 2016 Capital Investment Plan FY 16 thru FY 20 Department Power Plant City of Dover, Delaware Contact Power Plant Manager Type Improvement Project # EG1701 Useful Life 20 years Project Name Van Sant Unit 11 Major Overhaul Category Electric New Project: No Account Number: 487-8101-591.40-31 Priority n/a Time-Line: Status Active Total Project Cost: $2,498,000 Description This project will perform a major overhaul on the turbine generator based on Original Equipment Manufacturer (OEM) recommended repair frequency which is based on factored starts of the Unit from first commissioning and from last inspection/repair interval. This project will be implemented in 2017 with long lead material purchases in 2017 and installation in 2018. The project was revised to include the replacement of the exhaust plenum. Justification This project is required to fund the purchase of all parts needed to perform a major overhaul on the unit based on estimated factored starts since unit was first commissioned and since last the Hot Gas Path inspection. This project will span the course of two years. In Year 1, the majority of the long lead parts will be purchased. Services will be identified in year 2 and the actual installation will be performed in Year 2. Extended equipment and /or unit outage time will result from lack of funding this project. This will have a direct effect on the cost of energy during the extended outage time as well as increase future energy capacity charges. In addition, gradual degradation of the unit’s output could occur which would have a negative effect on the capacity rating of the unit and reliability of the unit. Expenditures FY 16 FY 17 FY 18 FY 19 FY 20 Total Construction/Maintenance 400,000 1,948,000 0 150,000 2,498,000 Total 400,000 1,948,000 0 150,000 2,498,000 Funding Sources FY 16 FY 17 FY 18 FY 19 FY 20 Total Electric Revenue 400,000 1,948,000 0 150,000 2,498,000 Total 400,000 1,948,000 0 150,000 2,498,000 Budget Impact/Other Monday, May 11, 2015 197

FY 2016 Capital Investment Plan FY 16 thru FY 20 Department Power Plant City of Dover, Delaware Contact Power Plant Manager Type Maintenance Project # EG1704 Useful Life Project Name McKee Run Unit 3 Hydrogen Purity Analyzer Category Electric New Project: Yes Account Number: 487-8101-591.40-31 Priority 10 -- Time-Line: FY17 Status Active Total Project Cost: $85,000 Description This project will replace the current Hydrogen Purity Analyzer on Unit 3 with newer equipment. Hydrogen Analyzers monitor hydrogen purity in power generators which use hydrogen gas for cooling. It also monitors CO2 in hydrogen and CO2 in air during shutdown and startup purge procedure. Hydrogen is the media by which cooling of the generator(s) is achieved. Great importance is placed on the assurance that system is 100% pure hydrogen and not contaminated. In addition, the analyzers also monitor the CO2 content when the generator is taken out of service for equipment and personnel safety reasons. Justification Critical system components that, if they fail, will result in loss of generation and/or capacity. Parts and repair facilities are becoming rare. Newer equipment enables the facility to secure improved equipment reliability and vendor support in the repair, acquisition of replacement parts and in the overall maintenance of the analyzers. CONSEQUENCES OF DELAYING OR ELIMINATING THIS PROJECT: Delaying this project could result in the failure of critical unit equipment and subsequent lose of generation and or capacity Expenditures FY 16 FY 17 FY 18 FY 19 FY 20 Total Construction/Maintenance 0 85,000 85,000 Total 0 85,000 85,000 Funding Sources FY 16 FY 17 FY 18 FY 19 FY 20 Total Electric Revenue 0 85,000 85,000 Total 0 85,000 85,000 Budget Impact/Other We would expect this project to be funded outside the normal operating budget. Monday, May 11, 2015 198

FY 2016 Capital Investment Plan FY 16 thru FY 20 Department Power Plant City of Dover, Delaware Contact Power Plant Manager Type Maintenance Project # EG1705 Useful Life Project Name McKee Run Units 1 & 2 Component Repairs Category Electric New Project: No Account Number: 487-8101-591.40-31 Priority n/a Time-Line: Status Active Total Project Cost: $21,000 Description This project will inspect and repair boiler safety valves associated with the McKee Run Units 1 and 2 Boilers. Justification These inspections are required by the Delaware Title 7 Boiler safety program. The safety valves are critical to the safe operation of the boiler and must operate correctly in the event of a boiler pressure excursion. This inspection will assume the valves are in good operating condition. Failure of any of these valves to open when required could lead to damage of the boiler and subsequent unit forced outage. Expenditures FY 16 FY 17 FY 18 FY 19 FY 20 Total Construction/Maintenance 21,000 0 0 21,000 Total 21,000 0 0 21,000 Funding Sources FY 16 FY 17 FY 18 FY 19 FY 20 Total Electric Revenue 21,000 0 0 21,000 Total 21,000 0 0 21,000 Budget Impact/Other Monday, May 11, 2015 199

FY 2016 Capital Investment Plan FY 16 thru FY 20 Department Power Plant City of Dover, Delaware Contact Power Plant Manager Type Maintenance Project # EG1805 Useful Life Unknown Project Name McKee Run Unit 3 Turbine Repairs Category Electric New Project: No Account Number: 487-8101-591.40-31 Priority n/a Time-Line: Status Active Total Project Cost: $463,000 Description This project will inspect the Unit 3 turbine control and stop valves and auxiliary equipment. This inspection is scheduled on a predetermined frequency based on Unit operating hours, required regulatory intervals, original equipment manufacturer and insurance company recommendations. In 2018 all turbine control, stop, and intercept valves will be fully disassembled, inspected and repaired if needed. Note: Project costs in years beyond 2018 are shown for expense planning purposes and represent future projects related to this equipment that are anticipated based on expected operation and insurance company recommendations. Justification The valve inspections included in the scope are all related to the normal and emergency turbine generator control and shutdown systems. Industry standard inspection guidelines are followed in order to minimize the risk of mechanical failure which could result in extended forced outage of the unit, or the potential indefinite loss of unit availability. Expenditures FY 16 FY 17 FY 18 FY 19 FY 20 Total Construction/Maintenance 438,000 25,000 463,000 Total 438,000 25,000 463,000 Funding Sources FY 16 FY 17 FY 18 FY 19 FY 20 Total Electric Revenue 438,000 25,000 463,000 Total 438,000 25,000 463,000 Budget Impact/Other Monday, May 11, 2015 200

VEHICLE & EQUIPMENT REPLACEMENT

City of Dover, Delaware FY 2016 Capital Investment Plan FY 16 thru FY 20 FUNDING SOURCE SUMMARY Source FY 16 FY 17 FY 18 FY 19 FY 20 Total General Fund 1,181,800 1,177,600 1,188,700 1,077,500 1,103,100 5,728,700 Other 20,300 20,300 GRAND TOTAL 1,202,100 1,177,600 1,188,700 1,077,500 1,103,100 5,749,000 Monday, May 11, 2015 202

City of Dover, Delaware FY 2016 Capital Investment Plan FY 16 thru FY 20 PROJECTS BY DEPARTMENT Department Project# Priority FY 16 FY 17 FY 18 FY 19 FY 20 Total City Manager 1998 Ford Explorer 15Veh #15 n/a 32,800 32,800 City Manager Total 32,800 32,800 Code Enforcement 1998 Ford Crown Victoria 18Veh# 11 n/a 23,800 23,800 Code Enforcement Total 23,800 23,800 Facilities Management 1996 Ford Van #436 17Veh #435 n/a 20,000 20,000 2003 Dodge Van (438) 18eh# 438 n/a 22,000 22,000 2004 Ford Van #439 18Veh# 439 3 24,200 24,200 2005 Ford F150 #433 20Veh#433 n/a 26,600 26,600 Facilities Management Total 20,000 22,000 24,200 26,600 92,800 Fleet Maintenance 2001 Dodge Ram 3500 #118 16Veh# 118 n/a 52,700 52,700 2001 Dodge Ram 1500 #131 16Veh# 131 n/a 31,300 31,300 1998 Ford F150 #129 17Veh #129 n/a 35,000 35,000 2001 Dodge Ram 150 #130 18Veh #130 n/a 38,000 38,000 2003 Chevrolet 1500 HD Flat Bed #119 19Veh# 119 n/a 60,000 60,000 Fleet Maintenance Total 84,000 35,000 38,000 60,000 217,000 Life Safety (Fire Marshal) 2005 Ford Expedition 15Veh# 28 n/a 27,800 27,800 2008 Dodge Durango 17Veh# 12 n/a 29,500 29,500 2003 Ford Expedition 17Veh# 23 n/a 27,900 27,900 1985 Chevy Van 18Veh# 14 n/a 17,500 17,500 Life Safety (Fire Marshal) Total 55,700 29,500 17,500 102,700 Permtting and Inspections 2005 Ford F150 17Veh# 13 n/a 16,000 16,000 Permtting and Inspections Total 16,000 16,000 Planning 2004 Ford Station Wagon 17Veh# 3 n/a 16,000 16,000 Planning Total 16,000 16,000 Police 2010 Ford Crown Vic (202) 16Veh# 202 n/a 24,700 24,700 203 Monday, May 11, 2015

Department Project# Priority FY 16 FY 17 FY 18 FY 19 FY 20 Total 2004 Honda Accord (212) 16Veh# 212 n/a 24,300 24,300 2007 Ford Crown Vic (227) 16Veh# 227 n/a 24,700 24,700 2008 Ford Crown Vic (238) 16Veh# 238 n/a 24,700 24,700 2008 HD Motorcycle FHP (256) 16Veh# 256 n/a 20,300 20,300 2008 Ford Crown Vic (259) 16Veh# 259 n/a 24,700 24,700 2010 Ford Crown Vic (271) 16Veh# 271 n/a 24,700 24,700 2010 Ford Crown Vic (275) 16Veh# 275 n/a 24,700 24,700 2007 Ford Crown Vic (280) 16Veh# 280 n/a 24,700 24,700 2010 Ford Crown Vic (285) 16Veh# 285 n/a 24,700 24,700 2005 Ford Crown Vic (288) 16Veh# 288 n/a 24,700 24,700 2010 Ford Crown Vic (289) 16Veh# 289 n/a 24,700 24,700 2008 Ford Crown Vic (291) 16Veh# 291 n/a 24,700 24,700 2007 Ford Crown Vic (292) 16Veh# 292 n/a 24,700 24,700 2010 Ford Crown Vic (203) 17Veh# 203 n/a 24,700 24,700 2002 Ford Taurus (206) 17Veh# 206 n/a 24,300 24,300 2011 Ford Crown Vic (251) 17Veh# 251 n/a 24,700 24,700 2011 Ford Crown Vic (252) 17Veh# 252 n/a 24,700 24,700 2011 Ford Crown Vic (253) 17Veh# 253 n/a 24,700 24,700 2011 Ford Crown Vic (254) 17Veh# 254 n/a 24,700 24,700 2008 HD Motorcycle FHP (257) 17Veh# 257 n/a 20,300 20,300 2008 Ford Fusion (274) 17Veh# 274 n/a 24,300 24,300 2005 Ford Crown Vic (277) 17Veh# 277 n/a 24,700 24,700 2000 Ford Taurus (210) 18Veh# 210 n/a 24,300 24,300 2008 Ford Fusion (221) 18Veh# 221 n/a 24,300 24,300 2010 Ford Fusion (237) 18Veh# 237 n/a 24,300 24,300 2011 Ford Crown Vic (255) 18Veh# 255 n/a 24,700 24,700 2007 Ford Fusion (260) 18Veh# 260 n/a 24,300 24,300 2007 Ford Fusion (261) 18Veh# 261 n/a 24,300 24,300 2009 HD Motorcycle FHP (266) 18Veh# 266 n/a 20,300 20,300 2012 Dodge Charger (272) 18Veh# 272 n/a 24,700 24,700 2012 Dodge Charger (276) 18Veh# 276 n/a 24,700 24,700 2005 Ford Crown Vic (279) 18Veh# 279 n/a 24,700 24,700 2010 Dodge Charger (209) 19Veh# 209 n/a 24,700 24,700 2011 Chevy Silverado (215) 19Veh# 215 n/a 23,700 23,700 2012 Chevy Tahoe (223) 19Veh# 223 n/a 28,000 28,000 2008 Ford Fusion (230) 19Veh# 230 n/a 24,300 24,300 2010 Ford Fusion (231) 19Veh# 231 n/a 24,300 24,300 2010 Ford Fusion (235) 19Veh# 235 n/a 24,300 24,300 2011 Ford Fusion (240) 19Veh# 240 n/a 24,300 24,300 2014 Harley Davidson FLHTP (244) 19Veh# 244 n/a 20,300 20,300 2010 Ford Crown Vic (273) 19Veh# 273 n/a 24,700 24,700 2002 Dodge Ram 1500 (296) 19Veh# 296 n/a 23,700 23,700 2011 Chevy Tahoe (226) 20Veh #226 n/a 28,000 28,000 2012 Dodge Charger (205) 20Veh# 205 n/a 24,700 24,700 1998 Ford E250 (207) 20Veh# 207 n/a 17,700 17,700 2011 Ford Fusion (218) 20Veh# 218 n/a 24,300 24,300 2011 Chevy Tahoe (222) 20Veh# 222 n/a 28,000 28,000 2012 Ford Fusion (233) 20Veh# 233 n/a 24,300 24,300 2000 Ford Crown Vic (234) 20Veh# 234 n/a 24,700 24,700 2010 Dodge Charger PPV (250) 20Veh# 250 n/a 24,700 24,700 2011 HD FHC Motorcycle (267) 20Veh# 267 n/a 20,300 20,300 1999 Ford E250 (281) 20Veh# 281 n/a 98,300 98,300 2010 Dodge Charger (297) 20Veh# 297 n/a 24,700 24,700 Police Total 341,000 217,100 240,600 242,300 339,700 1,380,700 Public Works - Grounds 204 Monday, May 11, 2015

Department Project# Priority FY 16 FY 17 FY 18 FY 19 FY 20 Total 2002 Dodge 3/4 with Dump (550) 16Veh# 550 3 34,500 34,500 1999 Chevy Chipper Box Dump Truck w/Lift Gate #554 16Veh# 554 3 60,400 60,400 2005 Kubota 72" Front Mount Mower #564 16Veh# 564 3 32,200 32,200 1990 FMC 300 Gallon Sprayer (565) 16Veh# 565 5 33,200 33,200 1994 Vermeer Brush Chipper (588) 16Veh# 588 5 40,800 40,800 2001 Kubota 80" Utility Tractor (569) 17Veh# 569 3 38,000 38,000 1999 Dodge Ram 2500 Truck #558 17Veh#558 n/a 26,000 26,000 2003 Ex-Mark 52" Zero Turn Mower (568) 18Veh# 568 3 15,000 15,000 2004 Kubota Tractor w/Front Loader/Backhoe #572 18Veh# 572 3 44,800 44,800 1995 International Bucket Truck #589 19Veh#589 2 188,000 188,000 2006 Kubota Mower #581 20Veh #581 n/a 60,000 60,000 2009 Toro Mower #561 20Veh#561 n/a 60,000 60,000 2001 Dodge Ram 2500 Truck #580 20VEH#580 n/a 33,000 33,000 Public Works - Grounds Total 201,100 64,000 59,800 188,000 153,000 665,900 Public Works - Sanitation 2008 International Bulk Trash Truck #448 16Veh# 448 3 189,000 189,000 2008 Peterbilt Automated Trash Truck (451) 16Veh# 451 4 260,000 260,000 2008 Peterbilt Automated Trash Truck (441) 17Veh# 441 3 284,000 284,000 2009 International Bulk Trash Truck #446 17Veh# 446 3 163,000 163,000 2008 Intn't Rear Loader (445) 18Veh# 445 4 165,000 165,000 2010 Peterbilt Automated Trash Truck #455 18Veh# 455 3 298,000 298,000 2003 Peterbilt Automated Trash Truck #444 19Veh#444 n/a 313,000 313,000 2008 Ford F150 #440 20Veh#440 n/a 43,800 43,800 2008 International Rear Loader #452 20Veh#452 n/a 278,000 278,000 2002 Hurst Trailer #453 20Veh#453 n/a 2,000 2,000 Public Works - Sanitation Total 449,000 447,000 463,000 315,000 321,800 1,995,800 Public Works - Streets 2006 Ford 1-Ton Dump Truck (325) 16Veh# 325 4 38,500 38,500 2001 Case Front-End Loader #312 17Veh #312 2 176,000 176,000 2001 Int'l Dump Truck (321) 17Veh# 321 3 123,000 123,000 2001 Case Front-End Loader #316 18Veh #316 2 194,000 194,000 1992 International Dump Truck (326) 18Veh# 326 1 130,000 130,000 2001 Int'l Dump Truck (322) 19Veh# 322 2 192,000 192,000 2002 Airman Air Compressor (382) 19Veh# 382 2 30,000 30,000 2003 Chevrolet Silverado 1500 #330 19Veh#330 n/a 26,000 26,000 2001 Int'l Dump Truck (324) 20Veh# 324 2 192,000 192,000 2002 Old Dominion Leaf Vac #361 20Veh#361 n/a 70,000 70,000 Public Works - Streets Total 38,500 299,000 324,000 248,000 262,000 1,171,500 Public Works Admin 1999 Ford Explorer (6) 17Veh# 6 n/a 34,000 34,000 Public Works Admin Total 34,000 34,000 GRAND TOTAL 1,202,100 1,177,600 1,188,700 1,077,500 1,103,100 5,749,000 205 Monday, May 11, 2015

City of Dover, Delaware FY 2016 Capital Investment Plan FY 16 thru FY 20 FUNDING SOURCE SUMMARY Source FY 16 FY 17 FY 18 FY 19 FY 20 Total Water/Wastewater Fund 103,700 375,100 278,700 673,200 148,000 1,578,700 GRAND TOTAL 103,700 375,100 278,700 673,200 148,000 1,578,700 Monday, May 11, 2015 206

City of Dover, Delaware FY 2016 Capital Investment Plan FY 16 thru FY 20 PROJECTS BY DEPARTMENT Department Project# Priority FY 16 FY 17 FY 18 FY 19 FY 20 Total W/WW Engineering 2008 Chevrolet Pickup (421) (Split) 17Veh# 421-2 n/a 10,500 10,500 2008 Ford F150 Pick-Up (420) (Split) 18Veh# 420-2 1 11,000 11,000 2008 Dodge Avenger (427) (Split) 19Veh# 427-2 n/a 11,500 11,500 2008 Dodge Avenger SE #5(split) 20Veh#5 n/a 14,000 14,000 W/WW Engineering Total 10,500 11,000 11,500 14,000 47,000 Wastewater Management 1987 Empire Generator (601) 16Veh# 601 n/a 29,000 29,000 1987 Empire Generator (602) 16Veh# 602 n/a 30,600 30,600 1987 Empire Generator (603) 17Veh# 603 n/a 30,600 30,600 2005 Case Backhoe #682 (split) 17Veh#682 n/a 55,000 55,000 2000 Airmen Air Compressor #683 (split) 17Veh#683 n/a 14,000 14,000 2008 Chevy 3/4-Ton Utility Truck #667 (Split) 18Veh #667 n/a 16,500 16,500 2006 Sidekick Easement Machine (690) 18Veh# 690 n/a 36,000 36,000 2008 Ford 1-Ton Utility Truck with crane #665 18Veh#665 n/a 50,000 50,000 2008 Ford 1/2 Ton Utility Truck #698 (split) 18Veh#698 n/a 15,500 15,500 2008 Case 590 Backhoe #672 (Split) 19Veh #672 n/a 59,400 59,400 2008 International Dump Truck 14' #681 (Split) 19Veh #681 n/a 78,000 78,000 2009 Chevrolet CUES Camera Truck #684 19Veh #684 5 300,000 300,000 2012 Chevrolet Silverado 1500 WT #695(split) 20Veh#695 n/a 14,000 14,000 Wastewater Management Total 59,600 99,600 118,000 437,400 14,000 728,600 Water Management 2004 Ford 1-Ton with dump #417 16Veh#417 n/a 44,100 44,100 2005 Case Backhoe #682 (Split) 17Veh# 682 n/a 55,000 55,000 2002 Sterling STE #424 17Veh#424 n/a 143,000 143,000 2000 Airmen air compressor #683 (split) 17Veh#683-2 n/a 14,000 14,000 2008 Chevy 3/4-Ton Utility Truck #667 (Split) 18Veh #667-2 n/a 16,500 16,500 1995 Caterpillar Excavator #400 18Veh# 400 n/a 62,700 62,700 2008 Ingersoll Air Compressor #407 18Veh#407 n/a 29,000 29,000 2008 Ford 1/2 Ton Utility Truck #698 (split) 18Veh#698-2 n/a 15,500 15,500 2008 Case 590 Backhoe #672 (Split) 19Veh #672-1 n/a 59,400 59,400 2008 International Dump Truck 14' #681 (Split) 19Veh #681-1 n/a 78,000 78,000 2009 Wacker RT820 Vibratory Trench Roller #401 19Veh#401 n/a 36,900 36,900 2012 Ford F250 Super Duty XL #403 20Veh#403 n/a 40,000 40,000 2012 Ford F250 Super Duty XL #425 20Veh#426 n/a 40,000 40,000 2012 Chevrolet Silverado 1500 WT #695 (split) 20Veh#695-2 n/a 14,000 14,000 Water Management Total 44,100 212,000 123,700 174,300 94,000 648,100 Water Treatment Plant 2010 Ford 1-Ton Utility Truck w/ Gate 3620 17Veh# 620 n/a 53,000 53,000 2008 GMC Cargo Van (662) 18Veh# 662 n/a 26,000 26,000 2007 Kohler Generator Trailer Mounted (604) 19Veh# 604 n/a 50,000 50,000 207 Monday, May 11, 2015

Department Project# Priority FY 16 FY 17 FY 18 FY 19 FY 20 Total 2011 Ford Ranger #621 20Veh#621 n/a 26,000 26,000 Water Treatment Plant Total 53,000 26,000 50,000 26,000 155,000 GRAND TOTAL 103,700 375,100 278,700 673,200 148,000 1,578,700 208 Monday, May 11, 2015

City of Dover, Delaware FY 2016 Capital Investment Plan FY 16 thru FY 20 FUNDING SOURCE SUMMARY Source FY 16 FY 17 FY 18 FY 19 FY 20 Total Electric Revenue 417,600 740,200 170,000 18,000 1,345,800 GRAND TOTAL 417,600 740,200 170,000 18,000 1,345,800 Monday, May 11, 2015 209

City of Dover, Delaware FY 2016 Capital Investment Plan FY 16 thru FY 20 PROJECTS BY DEPARTMENT Department Project# Priority FY 16 FY 17 FY 18 FY 19 FY 20 Total Electric Engineering Satellite-Synchronized Substation Clocks EE1611 n/a 30,000 30,000 SCADA Master Hardware Replacement EE1700 6 128,600 128,600 UPS System Replacement EE1701 n/a 25,000 25,000 System Operations Voice Recorder EE1900 n/a 18,000 18,000 2008 Dodge Avenger (7) Veh# 007 n/a 28,200 28,200 2005 Dodge Stratus (8) Veh# 008 n/a 25,500 25,500 2007 Dodge Pickup (9) Veh# 009 n/a 29,500 29,500 2005 Ford Pick Up (770) Veh# 770 n/a 30,000 30,000 2006 Dodge Pickup (790) Veh# 790 n/a 26,000 26,000 Electric Engineering Total 30,000 292,800 18,000 340,800 Electric T & D 2016 Mini Hydraulic Excavator Veh #7?? n/a 48,300 48,300 2006 Terex Backhoe (#722) Veh #722 n/a 130,000 130,000 1995 Case Backhoe (733) Veh #733 n/a 125,000 125,000 2008 Ford Dump F350 (796) Veh #796 n/a 40,000 40,000 1996 Trencher/Hoe (702) Veh# 702 n/a 78,900 78,900 1989 Smith SM160 (716) Veh# 716 n/a 22,400 22,400 2001 Freightliner (750) Veh# 750 n/a 300,000 300,000 2003 Freightliner (779) Veh# 779 n/a 260,400 260,400 Electric T & D Total 387,600 447,400 170,000 1,005,000 GRAND TOTAL 417,600 740,200 170,000 18,000 1,345,800 210 Monday, May 11, 2015

DEBT SERVICE  DEBT LIMIT  DEBT SERVICE SCHEDULES

City of Dover, Delaware Computation of Legal Debt Margin General Obligation Bonds (amounts expressed in thousands) Estimated Estimated 2016 2015 2014 2013 2012 2011 2010 2009 Debt Limit $ 152,516 $ 157,962 $ 157,995 $ 157,186 $ 156,429 $ 155,838 $ 144,341 $ 143,997 Net (Taxable) Assessed Value on Books 3,050,322 3,159,245 3,159,894 3,143,717 3,128,585 3,116,765 2,886,826 2,879,943 Total net debt applicable to limit 8,587 7,335 4,050 4,479 2,127 1,550 1,820 2,080 Legal Debt Margin $ 143,929 $ 150,627 $ 153,945 $ 152,707 $ 154,302 $ 154,288 $ 142,521 $ 142,885 Total Net Debt applicable to limit as a percentage of debt limit 5.63% 4.64% 2.56% 2.85% 1.36% 1.00% 1.26% 1.44% Legal Debt Margin Calculation for Fiscal Year 2015 Net (Taxable) Assessed Value on Books $ 3,050,322 $ 3,159,245 $ 3,159,894 $ 3,143,717 $ 3,128,585 Debt Limit - 5 Percent of Total Assessed Value $ 152,516 $ 157,962 $ 157,995 $ 157,186 $ 156,429 DEBT (For which the City's full faith and credit has been pledged) Gross Bonded Debt 8,587 7,335 4,050 4,479 2,127 LEGAL DEBT MARGIN $ 143,929 $ 150,627 $ 153,945 $ 152,707 $ 154,302 IMPORTANT NOTE: The Total Net Debt applicable to the debt limit includes the remaining Series 2014 A & B Bonds (PNC) and the 2012 Bonds (PNC). Source: City of Dover Financial Reports, City of Dover Charter, Section 50(b), and Tax Assessor's Office July 2009 the Charter was amended and the debt limit was reduced from 25% of the total assessed value to 5%. 212

FY 2016 DRAFT ANNUAL OPERATING BUDGET - DOVER, DELAWARE City of Dover General Fund Projected Debt Service 2012 2014 Tax- Green Energy Fiscal Year Series 2003 Tax- Exempt Series 2014 Exempt Total Debt Debt Service Net Debt Ending Bonds Loan * Bonds Loan * Service Contribution Service 6/30/2015 $ 243,000 $ 229,900 $ 235,700 $ 190,100 $ 708,600 $ (98,500) $ 610,100 6/30/2016 244,300 229,900 250,000 190,100 914,300 (98,500) 815,800 6/30/2017 249,900 229,900 250,000 190,100 919,900 (98,500) 821,400 6/30/2018 - 229,900 250,000 190,100 670,000 (98,500) 571,500 6/30/2019 - 229,900 250,000 190,100 670,000 (98,500) 571,500 6/30/2020 - 229,900 250,000 - 479,900 (98,500) 381,400 6/30/2021 - 229,900 250,000 - 479,900 (98,500) 381,400 6/30/2022 - 229,900 250,000 - 479,900 (98,500) 381,400 6/30/2023 - 229,900 250,000 - 479,900 (98,500) 381,400 6/30/2024 - 229,900 250,000 - 479,900 (98,500) 381,400 6/30/2025 - 229,900 250,000 - 479,900 (98,500) 381,400 6/30/2026 - 229,900 250,000 - 479,900 (98,500) 381,400 6/30/2027 - 229,900 250,000 - 479,900 (98,500) 381,400 6/30/2028 - 229,900 250,000 - 479,900 (98,500) 381,400 6/30/2029 - 229,900 250,000 - 479,900 (98,500) 381,400 6/30/2030 - 229,900 - - 229,900 (98,500) 131,400 6/30/2031 - 229,900 - - 229,900 (98,500) 131,400 6/30/2032 - 229,900 - - 229,900 (98,500) 131,400 6/30/2033 - - - - - - - Totals $ 737,200 $ 4,138,200 $ 3,735,700 $ 950,500 $ 9,371,500 $ (1,773,000) $ 7,598,500 Library & Garrison Public Safety Library Streets Farm Equipment * Annual Debt Service for the 2012 Loan does not reflect any reduction for the sale of the current Library 213

FY 2016 DRAFT ANNUAL OPERATING BUDGET - DOVER, DELAWARE City of Dover Water/Wastewater Revenue Bonds Projected Debt Service Series 2013 Fiscal Year Series 2000 Series 2009 Series 2010 Series 2011 Revenue Total Debt Ending Wastewater Wastewater Water Wastewater Bonds Service 6/30/2015 $ 53,000 $ 347,100 $ 161,300 $ 58,100 $ 532,400 $ 1,151,900 6/30/2016 53,000 347,100 161,300 58,100 512,500 1,132,000 6/30/2017 53,000 347,100 161,300 58,100 507,700 1,127,200 6/30/2018 53,000 347,100 161,300 58,100 507,600 1,127,100 6/30/2019 53,000 347,100 161,300 58,100 512,200 1,131,700 6/30/2020 53,000 347,100 161,300 58,100 506,500 1,126,000 6/30/2021 - 347,100 161,300 58,100 510,500 1,077,000 6/30/2022 - 347,100 161,300 58,100 509,100 1,075,600 6/30/2023 - 347,100 161,300 58,100 507,400 1,073,900 6/30/2024 - 347,100 161,300 58,100 510,300 1,076,800 6/30/2025 - 347,100 161,300 58,100 305,900 872,400 6/30/2026 - 347,100 161,300 58,100 304,300 870,800 6/30/2027 - 347,100 161,300 58,100 302,100 868,600 6/30/2028 - 347,100 161,300 58,100 304,300 870,800 6/30/2029 - 347,100 161,300 58,100 305,300 871,800 6/30/2030 - 347,100 161,300 58,100 305,300 871,800 6/30/2031 - 347,100 76,500 58,100 305,900 787,600 6/30/2032 - 173,600 - 29,100 304,100 506,800 6/30/2033 - - - - 302,900 302,900 6/30/2034 - - - - 301,100 301,100 Total $ 318,000 $ 6,074,300 $ 2,657,299 $ 1,016,800 $ 8,157,400 $ 18,223,799 214

FY 2016 DRAFT ANNUAL OPERATING BUDGET - DOVER, DELAWARE City of Dover Electric Revenue Fund Projected Debt Service Electric Revenue Fund Fiscal Year 2008 Revenue Bonds 2010 Revenue Bonds Total Debt Ending Principal Interest Principal Interest Service 6/30/2015 $ 450,000 $ 964,954 $ 1,810,000 $ 166,900 $ 3,391,854 6/30/2016 475,000 942,454 1,890,000 94,500 3,401,954 6/30/2017 695,000 918,704 - - 1,613,704 6/30/2018 730,000 883,954 - - 1,613,954 6/30/2019 765,000 847,454 - - 1,612,454 6/30/2020 800,000 815,706 - - 1,615,706 6/30/2021 840,000 781,706 - - 1,621,706 6/30/2022 880,000 746,006 - - 1,626,006 6/30/2023 925,000 707,506 - - 1,632,506 6/30/2024 970,000 665,881 - - 1,635,881 6/30/2025 1,015,000 622,231 - - 1,637,231 6/30/2026 1,065,000 576,555 - - 1,641,555 6/30/2027 1,120,000 527,300 - - 1,647,300 6/30/2028 1,175,000 475,500 - - 1,650,500 6/30/2029 1,230,000 416,750 - - 1,646,750 6/30/2030 1,290,000 355,250 - - 1,645,250 6/30/2031 1,355,000 290,750 - - 1,645,750 6/30/2032 1,420,000 223,000 - - 1,643,000 6/30/2033 1,485,000 152,000 - - 1,637,000 6/30/2034 1,555,000 77,750 - - 1,632,750 Total $ 20,240,000 $ 11,991,411 $ 3,700,000 $ 261,400 $ 36,192,811 215

GENERAL FUND

GENERAL  MAYOR  CITY COUNCIL  CITY MANAGER  CITY CLERK  CUSTOMER SERVICES  FINANCE, PROCUREMENT & INVENTORY  FIRE  HUMAN RESOURCES  INFORMATION TECHNOLOGY  PARKS, RECREATION & LIBRARY  POLICE  TAX ASSESSOR  PLANNING & INSPECTIONS  PUBLIC WORKS

BUDGET REVIEW Fiscal Year 2015-2016 May 2015 – Budget Review Hearing 218

What You Need to Know • Percentage changes are calculated on FY15 Original Budgets • All Department budgets reflect the following in personnel expenses: – Vacation sell-back, retirement payouts and education assistance are budgeted in a separate fund expense account in order to reduce the overall amount budgeted for personnel expenses. – Health Insurance rates have increased by approximately 19.7%. – OPEB rates remain stable across all funds and divisions. – Actuarial determined contribution for the pension liability is included in the pension contribution percentage. – NB Employees earning less than $85,000 have a 3% raise budgeted. – NB Employees earning greater than $85,000 have a 2% raise with a 1% bonus budgeted. – The DOE Employees only have the pay scale increase budgeted. – FOP Pay Scale is the same 219

GENERAL FUND BUDGET REVIEW Fiscal Year 2015-2016 MAY 2015 – BUDGET REVIEW HEARING 220

Mayor Personnel Costs 56,900 2% Materials & Supplies 300 0% Administrative Expenditures 19,100 1% Overall Operating Expenses 76,300 2% Highlights: Personnel costs increase due to increased rates for health insurance. Materials and Supplies remained constant. Administrative Expenses increased over all by $100 with increases in advertising and community relations expenses offset by decreases in subscriptions and dues and gasoline. 221

City Council Personnel Costs 91,000 0% Materials & Supplies 300 25%  Administrative Expenditures 41,500 171% Overall Operating Expenses 132,800 25% Highlights: Personnel Costs remained constant. Materials and Supplies decreased by $100 due to a decrease in office supplies. (Note – Percentage appears high because this is not a large budget.) Administrative Expenditures increased a net of $26,200. Increases were in Training/conference/food/travel of $21,300, subscriptions and dues of $400, increase in HRC office expenses of $5,000 offset by community relations expense decreasing by $500. 222

City Manager Personnel Costs 499,300 18% Materials & Supplies 6,000 2% Administrative Expenditures 247,800 51% Overall Operating Expenses 753,100 27% Capital Outlay 32,800 100% Total Expenditures 785,900 33% Highlights: Personnel Costs have increased $77,200 due to adding an Assistant City Manager position as well as 4 temporary help Production Worker positions. Materials and supplies decreased by $100. Administrative Expenditures budget increased by $83,500 for an ICMA study in the amount of $100,000 offset by a decrease in legal expenses of $18,000. Capital Outlay of $32,800 includes a Ford Explorer for the Public Affairs/Emergency Management Coordinator. 223

City Clerk Personnel Costs 356,500 3% Materials & Supplies 4,500 4% Administrative Expenditures 24,200 27% Overall Operating Expenses 385,200 1% Highlights: Personnel Costs increased for wage and benefit cost increases. Materials and supplies expense had a net decrease because computer software was reduced by $200. Administrative expenditures has a net decrease of $8,800 due to decreases in training/conf./food/travel for $1,100, election related expenses for municipal election for $8,800 offset by a $1,000 increase in office equipment repairs & maintenance. 224

Customer Services Personnel Costs 1,055,200 14% Materials & Supplies 41,400 31% Administrative Expenditures 26,300 68% Overall Operating Expenses 1,122,900 8% Highlights: Personnel costs increased by $129,700 due to additional budgeted amount of $70,900 for temporary help for 3 part-time positions. Materials and supplies increased $9,800 all due to budgeted computer hardware for the new temporary employees. Administrative expenses decreased due to a decrease in contractual services since the credit card fees for the Electric and Water Wastewater funds have been moved to the applicable funds where the revenue is coded. 225

Finance Personnel Costs 805,000 5% Materials & Supplies 5,200 6% Administrative Expenditures 182,800 3% Overall Operating Expenses 993,000 5% Highlights: Personnel costs increased by $39,800 due to an increase in temporary help for a part- time Account Clerk II to assist with annual budget preparation and internal audit functions. Materials and supplies have increased $300 due to small increases in printing and duplicating of $200 and office supplies of $100. Administrative expenses have increased by $5,800 due to increase in contractual services of $7,500 for a 401/457 plan consultant review offset by decreases in training, subscriptions and dues, and office equipment/repairs and maintenance. 226

Procurement & Inventory Personnel Costs 284,200 2% Materials & Supplies 15,000 3% Administrative Expenditures 271,300 13% Overall Operating Expenses 570,500 7% Highlights: Materials and Supplies increased for computer hardware and water/sewer offset by decreases in office supplies and printing and duplicating. Administrative expenditures have increased by $30,300 mostly for postage. Other small fluctuations in telephone, advertising, office & other equipment repairs and maintenance and gasoline expense make up the remaining $300 increase. 227

Fire Personnel Costs 449,100 3% Materials & Supplies 600 0% Administrative Expenditures 335,000 19% Overall Operating Expenses 784,700 10% Capital Outlay 238,500 71% Total Expenditures 1,023,200 34% Highlights: Personnel Costs increased due to adding $11,000 to existing overtime. Administrative Expenditures increased due to $2,300 budgeted for required employee training/conf./food/travel and a $50,000 increase in budget for program expenses. Capital Expenses decreased from prior year’s budget of $827,300. Prior year included $588,800 worth of SCBA equipment and radios. 228

Human Resources Personnel Costs 317,400 3% Materials & Supplies 38,700 1% Administrative Expenditures 27,000 16% Overall Operating Expenses 383,100 1% Highlights: Personnel Costs have increased overall by $8,400 due to benefit cost increases. Materials and Supplies have increased by $200 due to small increases in program expenses, books, computer hardware offset by small decreases in medical supplies & physicals, computer software and personnel related supplies. Administrative Expenditures budget is down by $5,200 due to reductions in advertisement, training/conf./food/travel, and unemployment compensation expense. 229

Information Technology Personnel Costs 442,100 7% Materials & Supplies 97,200 26% Administrative Expenditures 167,800 4% Overall Operating Expenses 707,100 3% Highlights: Personnel Costs decreased by $35,100 due to a reduction of 1 full-time position and an increase of 1 part-time position. Materials and supplies are increased by $19,800 for computer software and hardware. Administrative Expenditures decreased $6,300 due to reductions in telephone, training/conf./food/travel and contractual services offset by small increases in in- house training and off equip/repairs & maintenance. 230

Library Personnel Costs 1,287,700 13% Materials & Supplies 71,400 4% Administrative Expenditures 155,100 12% Overall Operating Expenses 1,514,200 9% Highlights: Personnel Costs increased by $145,600 mainly due to an increase in temporary help and fringes related to 6 new part-time positions. (3 part-time related to security) Materials & Supplies decreased by $3,000 mainly to a decrease in computer hardware. Administrative expenditures has a net decrease of $21,500 due to reduction in heating oil/gas and contractual services for the elimination of outside security company expense, both decreases are offset by an increase in electricity expense of $17,000. 231

Parks & Recreation Personnel Costs 467,400 7% Materials & Supplies 60,500 3% Administrative Expenditures 202,300 4% Overall Operating Expenses 730,200 3% Capital Outlay 0 100% Total Expenditures 730,200 14% Highlights: Personnel Costs increased by $30,100 mainly due to collective bargaining agreements and fringe benefits. Materials & Supplies expenditures have increased by $1,800 due to increases in printing and duplicating, computer hardware and city building maintenance supplies offset by a decrease in program expenses. Administrative Expenditures decreased by $8,100 due to a reduction in various expenses budgeted in contractual services line item. Capital Outlay has reduced due to no expenditures budgeted in this department, last years budget was $146,000 which included Dover Park demolition and Schutte Park improvement expenses. 232

Police Personnel Costs 14,698,700 8% Materials & Supplies 461,500 34% Administrative Expenditures 781,200 14% Overall Operating Expenses 15,941,400 8% Capital Outlay 360,900 28% Total Expenditures 16,302,300 7% Highlights: Personnel Costs increased by $1,027,000 due to an increase in 11 FTE’s and benefit costs in this department. Materials and Supplies has a net increase of $117,400 for program expenses/supplies, medical sup & physicals, uniforms/uniform allowances and computer hardware. Increase is due to adding more officers to the department. Administrative Expenses increased by $98,400 due to increases in insurance, subscriptions and dues, training & conference, contractual services, auto repairs/maintenance and radio repairs/maintenance, radio equipment/lease and offset by a reduction in gasoline of $15,000. Capital Outlay of $360,900 is down from prior year by $138,200 and includes the purchase of 13 vehicles, 1 motorcycle and a camera monitoring station. Prior year included budget for 800 MHz radios. 233

Tax Assessor Personnel Costs 207,300 9% Materials & Supplies 3,000 83% Administrative Expenditures 24,600 76% Overall Operating Expenses 234,900 24% Highlights: Personnel increased due to wage and benefit cost increases. Materials and Supplies are decreased for printing and duplicating. The prior year had budgeted a large amount for the City-wide revaluations. Administrative Expenses are decreased by $77,700 for contractual services, prior year had budgeted $92,900 for the City-wide revaluations. 234

Planning/Inspections & Community Development 235

Planning Personnel Costs 515,700 26% Materials & Supplies 10,700 25% Administrative Expenditures 19,900 2% Overall Operating Expenses 546,300 23% Highlights: Personnel Costs increased by $105,400 salary & benefit increases as well as the proposed addition of 1 Planner position. Current year charges to the CDBG program is reduced by $14,000 covering $34,800 of the position’s salary and benefits resulting in an increase of personnel costs. Materials & Supplies expenditures decreased due to a reduction of $3,500 in printing and duplicating. Administrative expenditures increased slightly by $300 for telephone expense. 236

Inspections & Permitting Personnel Costs 462,500 8% Materials & Supplies 7,300 217% Administrative Expenditures 194,900 14% Overall Operating Expenses 664,700 10% Highlights: Personnel Costs increased due to increases in salaries for collective bargaining employees and higher benefit cost. Materials & Supplies have increased due to an increase in computer hardware of $6,400. Administrative Expenses have increased mostly due to a $25,000 increase in budgeted demolitions expense. 237

Code Enforcement Personnel Costs 386,400 2% Materials & Supplies 22,300 18% Administrative Expenditures 11,600 8% Overall Operating Expenses 420,300 0% Highlights: Personnel Costs increased overall due to benefit cost increases. Salaries actually decreased due to attrition. Materials & Supplies decreased due to a reduction of computer hardware of $4,500. Administrative Expenditures decreased due to reductions in telephone and gasoline offset by small increase in subscriptions and dues. 238

Life Safety Personnel Costs 220,600 8% Materials & Supplies 6,900 7% Administrative Expenditures 255,200 1% Overall Operating Expenses 482,700 4% Capital Outlay 55,700 100% Total Expenditures 538,400 7% Highlights: Personnel Costs reflect a decrease due to the retirement of a senior employee in the prior year. Materials & Supplies have decreased due to a reduction in books and uniforms offset by an increase in computer hardware. Administrative Expenses remain constant with small decreases in telephone and gasoline. Capital Outlay includes $55,700 for 2 vehicles. 239

Community Development/CDBG Personnel Costs 36,000 23% Overall Operating Budget 36,000 23% Capital Outlay 229,400 22% Total Expenditures 265,400 13% Highlights: Personnel Costs decreased due to decreased program funding by HUD (this is in direct relation to how much is budgeted for programs funded by HUD). Capital Outlay has increased per allocation from HUD. 240

Economic Development Personnel Costs 211,300 8% Materials & Supplies 1,500 0% Administrative Expenditures 25,700 0% Overall Operating Expenses 238,500 7% Highlights: Personnel Costs increased overall by $15,400 due to wage and benefit cost increases. Materials and Supplies remained constant. Administrative Expenses remained constant. 241

Public Works 242

Public Works Admin Personnel Costs 599,800 20% Materials & Supplies 11,100 26% Administrative Expenditures 21,700 229% Overall Operating Expenses 632,600 23% Highlights: Personnel Costs increased by $78,200 @ 10 months due to a transfer of 1 FTE for a new position - Public Works Operation Manager. The Sanitation Supervisor in Sanitation Division was eliminated. Materials & Supplies are increased by $2,300 due to increase of $1,500 for computer hardware and $1,000 for printing and duplicating offset by a $200 decrease in office supplies. Administrative Expenditures increased by $15,100. Areas significantly increased are subscriptions and dues $6,100 for accreditation certificates, training/conf./travel/food $1,500 and contractual services $7000 for ARCGIS server enterprise standard software support.243

Facilities Management Personnel Costs 532,700 8%↑ Materials & Supplies 27,500 2% Administrative Expenditures 148,800 5% Overall Operating Expenses 709,000 5%↑ Highlights: Personnel Costs increased due to wage and benefit cost increases. Materials and Supplies decreased due to small tools, computer hardware offset by an increase in uniforms/uniform allowances. Administrative Expenditures decreased due to contractual services which is now including outsourcing janitorial services offset by reductions in electricity and gasoline. 244

Fleet Maintenance Personnel Costs 456,400 4% Materials & Supplies 307,100 4% Administrative Expenditures 6,600 29% Overall Operating Expenses 770,100 1% Capital Outlay 84,000 100% Total Expenditures 854,100 10% Highlights: Personnel Costs are down due to employee retirements. Materials and Supplies increased due to an increase in small tools of $15,000 offset by decreases in printing and duplicating, computer software, and computer hardware. Administrative Expenses increased due to an increase of $1,400 in training/conf./food/travel. Capital Outlay includes 2 vehicles. 245

Grounds Personnel Costs 924,700 8% Materials & Supplies 54,300 1% Administrative Expenditures 232,500 10% Overall Operating Expenses 1,211,500 8% Capital Outlay 201,100 195% Total Expenditures 1,412,600 19% Highlights: Personnel Costs increased, even though there was an elimination of 1 temporary Laborer II position, mainly due to increases in benefit costs. Materials & Supplies remained constant except for a small overall increase of $300. Administrative Expenditures increased by $20,400 due to increases in contractual services for mowing, telephone, electricity, heating oil/gas offset by a $5,000 decrease in gasoline. Capital expenses includes two new vehicles, a ¾ ton dump truck and a chipper box dump truck w/lift gate; a front mount mower, 300 gallon sprayer, and a brush chipper. 246

Sanitation Personnel Costs 685,700 8% Materials & Supplies 25,000 0% Administrative Expenditures 1,449,200 2% Overall Operating Expenses 2,159,900 4% Capital Outlay 449,000 75% Total Expenditures 2,608,900 4% Highlights: Personnel Costs decreased due to the elimination of the Sanitation Supervisor Position. Materials & Supplies remained constant. Administrative Expenses are decreased due to a decrease in contractual services and Agency billing-temp help and gasoline. Capital outlay is related to the replacement of a 2008 international bulk truck and a 2008 Peterbilt automated trash truck. The prior year had an automated trash truck budgeted for $256,500. 247

Streets Personnel Costs 511,500 0% Materials & Supplies 91,200 7% Administrative Expenditures 74,000 10% Overall Operating Expenses 676,700 2% Capital Outlay 1,483,500 63% Total Expenditures 2,160,200 53% Highlights: Personnel costs are constant due to decreases in overtime and shift differential and offsetting increases in salaries and benefit costs for wage and benefit cost increases. Materials and supplies have increased by $5,900 mostly in program expenses and sand and salt offset by a reduction in ditch maintenance expenses. Administrative expenses are increased for telephone, environmental exp., agency billing – temp help offset by decreases in training, contractual services, gasoline and radio repairs and maintenance. Capital Outlay includes a 1-ton dump truck $1 million in street paving, $385,000 PW2 site improvements and valve replacement on Silver Lake damn. 248

Public Works - Engineering Personnel Costs 114,400 11% Materials & Supplies 2,000 50% Administrative Expenditures 4,000 0% Overall Operating Expenses 182,100 5% Highlights: Personnel costs are reduced due to the reset of the salary for new hires in the Public Works Inspector positions. Materials and supplies have decreased due to reduction of computer hardware and software. Administrative expenditures remain at $4,000 with increases in contractual services and offsetting decreases in telephone and gasoline expenditures. 249

FY 2016 Annual Operating Budget—Dover, Delaware Mayor Fiscal Year 2016 Organizational Chart Citizens of Dover Mayor Police Economic Department Development updated: 05.04.2015 250

MAYOR 110-3200-519 2011-2012 2012-2013 2013-2014 2014-2015 2014-2015 2015-2016 % ACCT DESCRIPTION ACTUAL ACTUAL ACTUAL BUDGET REVISED PROPOSED CHANGE 10-11 SALARIES $ 45,173 $ 45,000 $ 39,621 $ 45,000 $ 45,000 $ 45,000 0% 10-14 FICA TAXES 3,485 3,437 2,998 3,400 3,400 3,400 0% 10-15 HEALTH INSURANCE 7,474 6,768 5,634 6,800 6,800 8,100 19% 10-16 L I D INSURANCE 340 340 283 300 300 300 0% 10-17 WORKERS COMPENSATION 5 236 82 100 100 100 0% PERSONNEL COSTS 56,477 55,780 48,618 55,600 55,600 56,900 2% 20-21 FURNITURE/FIXTURES - - 1,108 - - - 0% 20-22 OFFICE SUPPLIES - 73 170 100 100 100 0% 20-23 PRINTING AND DUPLICATING 184 86 334 200 200 200 0% 20-38 COMPUTER HARDWARE 2,377 - - - - - 0% MATERIALS & SUPPLIES 2,561 158 1,612 300 300 300 0% 30-21 TELEPHONE/FAX 1,219 1,261 1,110 1,200 1,200 500 -58% 30-25 ADVERTISEMENT 150 994 672 800 1,800 1,500 88% 30-27 SUBSCRIPTIONS AND DUES 1,765 5,449 5,293 5,200 4,200 3,500 -33% 30-28 TRAINING/CONF/FOOD/TRAVEL 3,381 5,900 5,091 - - - 0% 30-35 COMMUNITY RELATIONS EXP 6,839 5,737 7,244 5,500 5,500 8,200 49% 30-37 OTHER EXPENSES 5,527 3,938 4,567 5,000 5,000 5,000 0% 30-62 GASOLINE 1,667 1,606 1,055 1,200 1,200 300 -75% 30-63 AUTO REPAIRS/MAINTENANCE 110 170 120 100 100 100 0% 30-67 RADIO REPAIRS/MAINTENANCE - 80 - - - - 0% ADMINISTRATIVE EXPENDITURES 20,658 25,135 25,150 19,000 19,000 19,100 1% OPERATING EXPENDITURES 79,696 81,073 75,380 74,900 74,900 76,300 2% 40-25 OTHER EQUIP - PURCHASE - 33,000 - - - - 0% CAPITAL OUTLAY - 33,000 - - - - 0% TOTAL EXPENDITURES $ 79,696 $ 114,073 $ 75,380 $ 74,900 $ 74,900 $ 76,300 2% OPERATING BUDGET STATS $ 79,696 $ 81,073 $ 75,380 $ 74,900 $ 74,900 $ 76,300 ACTUAL % OF OPER BUDGET 93% 102% 93% 99% 100% 102% BUDGET % CHANGE -7% 2% -7% -1% 0% 2% REVENUES GENERAL FUND $ 79,696 $ 81,073 $ 75,380 $ 74,900 $ 74,900 $ 76,300 GOV. CAPITAL PROJECT FUND - 33,000 - - - - PERSONNEL BUDGETED FULL-TIME POSITIONS 1.0 1.0 1.0 1.0 1.0 1.0 251

ECONOMIC DEVELOPMENT 110-1600-535 2011-2012 2012-2013 2013-2014 2014-2015 2014-2015 2015-2016 % ACCT DESCRIPTION ACTUAL ACTUAL ACTUAL BUDGET REVISED PROPOSED CHANGE 10-11 SALARIES $ 135,528 $ 135,056 $ 137,417 $ 138,700 $ 138,700 $ 147,500 6% 10-14 FICA TAXES 10,136 9,916 10,013 10,700 10,700 11,300 6% 10-15 HEALTH INSURANCE 22,472 20,353 20,332 20,400 20,400 24,500 20% 10-16 L I D INSURANCE 1,020 1,020 1,029 1,000 1,000 1,000 0% 10-17 WORKERS COMPENSATION 18 900 472 300 300 500 67% 10-19 PENSION 7,671 8,103 8,176 8,300 8,300 8,900 7% 10-20 OPEB 8,602 11,747 14,742 16,500 16,500 17,600 7% PERSONNEL COSTS 185,447 187,096 192,180 195,900 195,900 211,300 8% 20-22 OFFICE SUPPLIES 144 386 103 300 300 300 0% 20-23 PRINTING AND DUPLICATING 1,130 520 256 1,000 500 1,000 0% 20-24 PHOTOGRAPHIC - - - 200 200 200 0% 20-33 SMALL TOOLS 117 - - - - - 0% 20-38 COMPUTER HARDWARE - 1,290 2,646 - 500 - 0% MATERIALS & SUPPLIES 1,391 2,195 3,005 1,500 1,500 1,500 0% 30-21 TELEPHONE/FAX 3,257 3,338 1,640 2,400 2,400 2,400 0% 30-25 ADVERTISEMENT 1,125 1,250 1,250 1,300 1,300 1,300 0% 30-27 SUBSCRIPTIONS AND DUES - - - - - 100 100% 30-28 TRAINING/CONF/FOOD/TRAVEL 112 260 814 800 800 800 0% 30-31 CONTRACTUAL SERVICES 10,437 10,368 - - - - 0% 30-62 GASOLINE 35 61 - 100 100 100 0% 30-91 ECONOMIC DEVELOPMENT 15,000 15,379 15,000 21,000 21,000 21,000 0% ADMINISTRATIVE EXPENDITURES 29,966 30,656 18,704 25,600 25,600 25,700 0% OPERATING EXPENDITURES 216,804 219,947 213,889 223,000 223,000 238,500 7% TOTAL EXPENDITURES $ 216,804 $ 219,947 $ 213,889 $ 223,000 $ 223,000 $ 238,500 7% OPERATING BUDGET STATS $ 216,804 $ 219,947 $ 213,889 $ 223,000 $ 223,000 $ 238,500 ACTUAL % OF OPER BUDGET 100% 100% 100% 100% 100% 100% BUDGET % CHANGE -1% 1% -3% 4% 0% 7% REVENUES GENERAL FUND $ 216,804 $ 219,947 $ 213,889 $ 223,000 $ 223,000 $ 238,500 PERSONNEL BUDGETED FULL-TIME POSITIONS 3.0 3.0 3.0 3.0 3.0 3.0 252

FY 2016 Annual Operating Budget—Dover, Delaware City Council Fiscal Year 2016 Organizational Chart CITIZENS OF DOVER MAYOR AND COUNCIL At-Large Timothy A. Slavin 1st District 2nd District Councilman Councilman James E. Hosfelt, Jr. William F. Hare Councilman Councilman James L. Hutchison, Sr. Brian E. Lewis 3rd District 4th District Councilman Councilman Scott W. Cole David L. Anderson Councilman Councilman Fred A. Neil Roy Sudler, Jr. updated: 5/7/2015 253

CITY COUNCIL 110-1200-512 2011-2012 2012-2013 2013-2014 2014-2015 2014-2015 2015-2016 % ACCT DESCRIPTION ACTUAL ACTUAL ACTUAL BUDGET REVISED PROPOSED CHANGE 10-13 TEMPORARY HELP $ 73,443 $ 73,774 $ 76,566 $ 84,300 $ 84,300 $ 84,300 0% 10-14 FICA TAXES 5,618 5,628 5,857 6,400 6,400 6,400 0% 10-17 WORKERS COMPENSATION 16 382 157 200 200 300 50% PERSONNEL COSTS 79,077 79,785 82,581 90,900 90,900 91,000 0% 20-22 OFFICE SUPPLIES 68 339 21 100 - - -100% 20-23 PRINTING AND DUPLICATING 44 260 - 300 300 300 0% 20-24 PHOTOGRAPHIC 17 - - - - - 0% 20-37 COMPUTER SOFTWARE 83 - - - - - 0% 20-38 COMPUTER HARDWARE 6,000 - - - - - 0% MATERIALS & SUPPLIES 6,212 599 21 400 300 300 -25% 30-21 TELEPHONE/FAX 204 169 173 200 200 200 0% 30-27 SUBSCRIPTIONS AND DUES 11,032 11,098 11,153 11,100 11,200 11,500 4% 30-28 TRAINING/CONF/FOOD/TRAVEL 7,977 5,037 3,027 - - 21,300 0% 30-35 COMMUNITY RELATIONS EXP 1,475 4,393 2,118 4,000 4,000 3,500 -13% 30-37 OTHER EXPENSES 43 - - - - - 0% 30-92 HRC-OFFICE SUPPLIES 387 625 757 - - 5,000 0% ADMINISTRATIVE EXPENDITURES 21,118 21,323 17,228 15,300 15,400 41,500 171% OPERATING EXPENDITURES 106,407 101,707 99,829 106,600 106,600 132,800 25% TOTAL EXPENDITURES $ 106,407 $ 101,707 $ 99,829 $ 106,600 $ 106,600 $ 132,800 25% OPERATING BUDGET STATS $ 106,407 $ 101,707 $ 99,829 $ 106,600 $ 106,600 $ 132,800 ACTUAL % OF OPER BUDGET 100% 100% 100% 100% 100% 100% BUDGET % CHANGE -8% -4% -2% 7% 0% 25% REVENUES GENERAL FUND $ 106,407 $ 101,707 $ 99,829 $ 106,600 $ 106,600 $ 132,800 PERSONNEL PP/TEMP/COUNCIL 17.0 17.0 17.0 17.0 17.0 17.0 254

Fiscal Year 2016 Organization Chart CITY COUNCIL CITY MANAGER* 1 Assistant City Manager CUSTOMER 1 SERVICE HUMAN Public Affairs & Emergency RESOURCES Management Coordinator 1 INFORMATION TECHNOLOGY Administrative Assistant LIBRARY 1 PUBLIC WORKS ELECTRIC * Appointed by Council 255 Updated: 2/26/2015

CITY MANAGER 110-2100-515 2011-2012 2012-2013 2013-2014 2014-2015 2014-2015 2015-2016 % ACCT DESCRIPTION ACTUAL ACTUAL ACTUAL BUDGET REVISED PROPOSED CHANGE 10-11 SALARIES $ 340,606 $ 214,206 $ 217,374 $ 301,600 $ 305,000 $ 346,300 15% 10-12 OVERTIME - 1,737 2,513 2,000 2,000 2,000 0% 10-13 TEMPORARY - - - - - 11,500 0% 10-14 FICA TAXES 23,173 15,291 15,545 23,300 23,300 27,500 18% 10-15 HEALTH INSURANCE 37,387 28,853 30,983 39,800 39,800 47,800 20% 10-16 L I D INSURANCE 1,843 1,331 1,362 1,900 1,900 1,900 0% 10-17 WORKERS COMPENSATION 25 1,131 453 600 600 1,600 167% 10-19 PENSION 15,628 12,067 12,481 17,700 17,700 20,300 15% 10-20 OPEB 17,693 17,509 22,310 35,200 35,200 40,400 15% PERSONNEL COSTS 436,355 292,123 303,022 422,100 425,500 499,300 18% 20-22 OFFICE SUPPLIES 708 716 628 700 700 700 0% 20-23 PRINTING AND DUPLICATING 9,236 2,664 3,231 3,600 3,600 3,500 -3% 20-26 PROGRAM EXPENSES/SUPPLIES 1,800 2,236 1,800 1,800 1,800 1,800 0% 20-31 BOOKS 25 - - - - - 0% 20-37 COMPUTER SOFTWARE 166 - - - - - 0% 20-38 COMPUTER HARDWARE 1,632 1,893 1,402 - - - 0% MATERIALS & SUPPLIES 13,567 7,509 7,062 6,100 6,100 6,000 -2% 30-21 TELEPHONE/FAX 952 597 610 600 600 1,000 67% 30-27 SUBSCRIPTIONS AND DUES 2,091 1,571 3,174 3,300 3,300 4,500 36% 30-28 TRAINING/CONF/FOOD/TRAVEL 499 622 2,444 2,200 2,700 2,000 -9% 30-31 CONTRACTUAL SERVICES - - - - - 100,000 100% 30-32 LEGAL EXPENSES 185,956 190,619 216,264 158,000 157,500 140,000 -11% 30-35 COMMUNITY RELATIONS EXP 275 4,218 680 200 200 200 0% 30-61 OFF EQUIP/REPAIRS & MAINT 558 - 80 - - - 0% 30-62 GASOLINE 115 22 - - - 100 0% ADMINISTRATIVE EXPENDITURES 190,446 197,649 223,252 164,300 164,300 247,800 51% OPERATING EXPENDITURES 640,368 497,281 533,336 592,500 595,900 753,100 27% 40-22 AUTOMOBILES - PURCHASE - - - - - 32,800 100% CAPITAL OUTLAY - - - - - 32,800 100% TOTAL EXPENDITURES $ 640,368 $ 497,281 $ 533,336 $ 592,500 $ 595,900 $ 785,900 33% OPERATING BUDGET STATS $ 640,368 $ 497,281 $ 533,336 $ 592,500 $ 595,900 $ 753,100 ACTUAL % OF OPER BUDGET 100% 100% 100% 100% 100% 100% BUDGET % OF CHANGE 11% -22% 7% 11% 1% 26% REVENUES GENERAL FUND $ 640,368 $ 497,281 $ 533,336 $ 592,500 $ 595,900 $ 753,100 GOV. CAPITAL PROJECT FUND - - - - - 32,800 PERSONNEL BUDGETED FULL-TIME POSITIONS 5.0 3.0 3.0 3.0 4.0 4.0 256

FY 2016 DRAFT OPERATING BUDGET – DOVER, DELAWARE City Clerk Fiscal Year 2016 Organization Chart CITY COUNCIL CITY CLERK CITY CLERK, DIRECTOR OF COUNCIL AFFAIRS AND CONSTITUENT SERVICES/ASSISTANT TREASURER* 1 ASSISTANT CITY CLERK, DEPUTY DIRECTOR OF COUNCIL AFFAIRS & CONSTITUENT SERVICES/ASSISTANT TREASURER* 1 ASSISTANT TO THE DIRECTOR OF COUNCIL AFFAIRS & CONSTITUENT SERVICES 1 ADMINISTRATIVE ASSISTANT 1 *Appointed by Council 257

CITY CLERK 110-1100-511 2011-2012 2012-2013 2013-2014 2014-2015 2014-2015 2015-2016 % ACCT DESCRIPTION ACTUAL ACTUAL ACTUAL BUDGET REVISED PROPOSED CHANGE 10-11 SALARIES $ 155,762 $ 204,935 $ 218,533 $ 220,600 $ 224,100 $ 227,300 3% 10-12 OVERTIME 73 - - - - - 0% 10-14 FICA TAXES 11,529 15,125 16,189 16,900 16,900 17,400 3% 10-15 HEALTH INSURANCE 35,543 37,907 34,888 36,500 36,500 38,600 6% 10-16 L I D INSURANCE 1,101 1,423 1,523 1,600 1,600 1,600 0% 10-17 WORKERS COMPENSATION 18 1,078 451 500 500 700 40% 10-19 PENSION 5,608 7,866 45,634 43,100 43,100 44,000 2% 10-20 OPEB 9,490 17,624 23,094 26,300 26,300 26,900 2% PERSONNEL COSTS 219,124 285,958 340,312 345,500 349,000 356,500 3% 20-22 OFFICE SUPPLIES 930 1,374 141 1,400 1,400 1,400 0% 20-23 PRINTING AND DUPLICATING 4,222 2,675 2,514 3,000 3,000 3,000 0% 20-37 COMPUTER SOFTWARE - 445 727 300 300 100 -67% 20-38 COMPUTER HARDWARE 3,647 - 3,246 - - - 0% MATERIALS & SUPPLIES 8,799 4,494 6,629 4,700 4,700 4,500 -4% 30-21 TELEPHONE/FAX 509 423 486 500 500 500 0% 30-25 ADVERTISEMENT 773 1,036 826 1,000 1,000 1,000 0% 30-27 SUBSCRIPTIONS AND DUES 666 676 694 800 800 900 13% 30-28 TRAINING/CONF/FOOD/TRAVEL 880 6,245 383 6,200 6,200 5,100 -18% 30-31 CONTRACTUAL SERVICES 15,448 13,024 12,989 15,500 15,500 15,500 0% 30-34 ELECTION RELATED EXPENSES 5,093 3,611 5,626 9,000 9,000 200 -98% 30-61 OFF EQUIP/REPAIRS & MAINT - 45 - - - 1,000 0% ADMINISTRATIVE EXPENDITURES 23,369 25,059 21,004 33,000 33,000 24,200 -27% OPERATING EXPENDITURES 251,291 315,512 367,944 383,200 386,700 385,200 1% TOTAL EXPENDITURES $ 251,291 $ 315,512 $ 367,944 $ 383,200 $ 386,700 $ 385,200 1% OPERATING BUDGET STATS $ 296,393 $ 315,512 $ 367,944 $ 383,200 $ 386,700 $ 385,200 ACTUAL % OF OPER BUDGET 85% 100% 100% 100% 100% 100% BUDGET % CHANGE 6% 6% 17% 4% 1% 0% REVENUES GENERAL FUND $ 251,292 $ 315,512 $ 367,944 $ 383,200 $ 386,700 $ 385,200 PERSONNEL BUDGETED FULL-TIME POSITIONS 4.0 4.0 4.0 4.0 4.0 4.0 258

FY 2016 ANNUAL OPERATING BUDGET – DOVER, DELAWARE Customer Service Fiscal Year 2016 Organization Chart CITY MANAGER CUSTOMER SERVICE Customer Service Manager 1 Office Assistant 1 BILLING / COLLECTIONS CUSTOMER SERVICES Account Clerk III Customer Services Supervisor 1 1 Account Clerk II Account Clerk II 2 4 Account Clerk II – Part-time Account Clerk II – Part-time 1 3 CASHIERS METER READING Account Clerk III Field Service Representative III 1 1 Account Clerk II Field Service Representative II 2 3 259

CUSTOMER SERVICES 110-2900-529 2011-2012 2012-2013 2013-2014 2014-2015 2014-2015 2015-2016 % ACCT DESCRIPTION ACTUAL ACTUAL ACTUAL BUDGET REVISED PROPOSED CHANGE 10-11 SALARIES $ 536,486 $ 523,885 $ 556,289 $ 554,600 $ 558,100 $ 556,600 0% 10-13 TEMPORARY HELP 11,671 - 11,458 14,600 14,600 85,500 486% 10-14 FICA TAXES 41,426 39,189 41,914 43,600 43,600 49,100 13% 10-15 HEALTH INSURANCE 115,353 109,714 108,452 108,900 108,900 147,500 35% 10-16 L I D INSURANCE 3,362 3,166 3,411 3,300 3,300 3,200 -3% 10-17 WORKERS COMPENSATION 55 2,744 1,162 1,200 1,200 2,100 75% 10-18 EDUCATIONAL ASSISTANCE 1,882 - 1,500 - 800 - 0% 10-19 PENSION 26,331 25,434 152,791 133,300 133,300 145,000 9% 10-20 OPEB 34,536 44,565 58,476 66,000 66,000 66,200 0% PERSONNEL COSTS 771,102 748,697 935,454 925,500 929,800 1,055,200 14% 20-21 FURNITURE/FIXTURES 55 - - 400 400 400 0% 20-22 OFFICE SUPPLIES 13,239 13,357 12,211 13,000 13,000 13,000 0% 20-23 PRINTING AND DUPLICATING 18,724 16,607 14,497 15,000 15,000 15,000 0% 20-37 COMPUTER SOFTWARE - - - 300 300 300 0% 20-38 COMPUTER HARDWARE 5,450 3,349 2,389 2,900 2,900 12,700 338% MATERIALS & SUPPLIES 37,468 33,312 29,096 31,600 31,600 41,400 31% 30-21 TELEPHONE/FAX 3,125 3,998 4,289 4,100 4,100 4,700 15% 30-25 ADVERTISEMENT 537 - - - - - 0% 30-28 TRAINING/CONF/FOOD/TRAVEL - - - - - 1,000 0% 30-31 CONTRACTUAL SERVICES 77,533 63,060 217,564 66,900 66,900 4,500 -93% 30-61 OFF EQUIP/REPAIRS & MAINT 10,530 11,589 15,573 12,200 12,200 16,100 32% ADMINISTRATIVE EXPENDITURES 91,725 78,647 237,426 83,200 83,200 26,300 -68% OPERATING EXPENDITURES 900,295 860,657 1,201,976 1,040,300 1,044,600 1,122,900 8% TOTAL EXPENDITURES $ 900,295 $ 860,657 $ 1,201,976 $ 1,040,300 $ 1,044,600 $ 1,122,900 8% OPERATING BUDGET STATS $ 900,295 $ 860,657 $ 1,201,976 $ 1,040,300 $ 1,044,600 $ 1,122,900 ACTUAL % OF OPER BUDGET 100% 100% 100% 100% 100% 100% BUDGET % CHANGE 6% -4% 40% -13% 0% 7% REVENUES GENERAL FUND $ 900,295 $ 860,657 $ 1,201,976 $ 1,040,300 $ 1,044,600 $ 1,122,900 PERSONNEL BUDGETED FULL-TIME POSITIONS 14.0 14.0 14.0 14.0 14.0 14.0 BUDGETED PART-TIME POSITIONS - - - 1.0 1.0 4.0 260

FY 2016 Annual Operating Budget—Dover, Delaware Finance Fiscal Year 2016 Organizational Chart CITY COUNCIL Controller/Treasurer* 1 PROCUREMENT/ FINANCE INVENTORY Assistant Controller/Treasurer Contract & Procurement Manager 1 1 Payroll Specialist Storekeeper/Buyer II 1 2 Account Clerk II 1 PT New (Vacant) Mail Clerk 1 Financial Reporting & Accounting Manager 1 Accountant II 2 Administrative Assistant 1 * Appointed by Council Updated: 5/15/15 261

FINANCE 110-2300-517 2011-2012 2012-2013 2013-2014 2014-2015 2014-2015 2015-2016 % ACCT DESCRIPTION ACTUAL ACTUAL ACTUAL BUDGET REVISED PROPOSED CHANGE 10-11 SALARIES $ 453,872 $ 481,755 $ 453,720 $ 493,600 $ 502,300 $ 509,900 3% 10-12 OVERTIME 188 - 104 - - - 0% 10-13 TEMPORARY HELP - - - - - 17,700 0% 10-14 FICA TAXES 32,982 34,623 32,288 37,700 37,700 39,000 3% 10-15 HEALTH INSURANCE 70,371 80,092 80,052 97,400 97,400 100,300 3% 10-16 L I D INSURANCE 2,638 2,904 2,627 3,000 3,000 2,800 -7% 10-17 WORKERS COMPENSATION 46 2,523 924 1,000 1,000 1,600 60% 10-18 EDUCATIONAL ASSISTANCE - - - - 2,200 - 0% 10-19 PENSION 21,600 23,832 91,970 73,800 73,800 73,200 -1% 10-20 OPEB 28,096 41,576 46,797 58,700 58,700 60,500 3% PERSONNEL COSTS 609,793 667,304 708,481 765,200 776,100 805,000 5% 20-21 FURNITURE/FIXTURES - - 480 - - - 0% 20-22 OFFICE SUPPLIES 386 720 751 700 700 800 14% 20-23 PRINTING AND DUPLICATING 3,070 3,342 1,544 3,000 3,000 3,200 7% 20-38 COMPUTER HARDWARE - 4,591 7,138 1,200 1,200 1,200 0% MATERIALS & SUPPLIES 3,456 8,653 9,913 4,900 4,900 5,200 6% 30-21 TELEPHONE/FAX 1,171 1,261 1,340 1,300 1,300 1,400 8% 30-22 POSTAGE 56 - - - - - 0% 30-25 ADVERTISEMENT 200 203 214 200 200 200 0% 30-27 SUBSCRIPTIONS AND DUES 1,212 1,407 1,311 1,400 1,400 1,200 -14% 30-28 TRAINING/CONF/FOOD/TRAVEL 250 7,820 3,645 5,500 5,500 3,000 -45% 30-31 CONTRACTUAL SERVICES 171,068 163,134 182,212 165,900 177,900 175,800 6% 30-37 OTHER EXPENSES - 222 - 200 200 - -100% 30-61 OFF EQUIP/REPAIRS & MAINT 4,972 4,305 3,608 2,500 2,500 1,200 -52% ADMINISTRATIVE EXPENDITURES 178,929 178,353 192,330 177,000 189,000 182,800 3% OPERATING EXPENDITURES 792,178 854,310 910,724 947,100 970,000 993,000 5% TOTAL EXPENDITURES $ 792,178 $ 854,310 $ 910,724 $ 947,100 $ 970,000 $ 993,000 5% OPERATING BUDGET STATS $ 792,178 $ 854,310 $ 910,724 $ 947,100 $ 970,000 $ 993,000 ACTUAL % OF OPER BUDGET 100% 100% 100% 100% 100% 100% BUDGET % CHANGE -1% 8% 7% 4% 2% 2% REVENUES GENERAL FUND $ 792,178 $ 854,310 $ 910,724 $ 947,100 $ 970,000 $ 993,000 PERSONNEL BUDGETED FULL-TIME POSITIONS 8.0 8.0 8.0 8.0 8.0 8.0 BUDGETED PART-TIME POSITIONS 1.0 - - - - 1.0 262

PROCUREMENT & INVENTORY 110-2700-571 2011-2012 2012-2013 2013-2014 2014-2015 2014-2015 2015-2016 % ACCT DESCRIPTION ACTUAL ACTUAL ACTUAL BUDGET REVISED PROPOSED CHANGE 10-11 SALARIES $ 250,820 $ 185,353 $ 158,271 $ 179,700 $ 179,700 $ 159,800 -11% 10-12 OVERTIME 788 1,749 2,132 1,600 1,600 1,000 -38% 10-13 TEMPORARY HELP - - - - - 20,300 0% 10-14 FICA TAXES 18,957 14,616 12,234 14,000 14,000 13,800 -1% 10-15 HEALTH INSURANCE 43,167 20,464 13,552 12,500 12,500 14,300 14% 10-16 L I D INSURANCE 1,479 1,054 916 900 900 1,000 11% 10-17 WORKERS COMPENSATION 83 5,281 3,186 3,700 3,700 4,700 27% 10-18 EDUCATIONAL ASSISTANCE - - 5,016 - 7,200 - 0% 10-19 PENSION 12,315 9,439 52,702 49,100 49,100 50,400 3% 10-20 OPEB 14,369 15,253 16,697 18,500 18,500 18,900 2% PERSONNEL COSTS 341,978 253,208 264,706 280,000 287,200 284,200 2% 20-21 FURNITURE/FIXTURES 321 - - - - - 0% 20-22 OFFICE SUPPLIES 1,261 1,634 379 800 800 600 -25% 20-23 PRINTING AND DUPLICATING 3,844 4,116 3,799 3,800 3,800 3,600 -5% 20-25 CUSTODIAL 871 951 992 1,000 1,000 - -100% 20-26 PROGRAM EXPENSES/SUPPLIES 2,050 584 864 1,500 1,500 1,500 0% 20-29 UNIFORMS/UNIFORM ALLOW 834 828 663 900 900 900 0% 20-32 SECURITY/SAFETY MATERIALS 584 384 263 500 500 500 0% 20-37 COMPUTER SOFTWARE 55 - - 200 200 200 0% 20-38 COMPUTER HARDWARE 1,131 2,370 - 1,400 1,100 2,200 57% 20-46 CITY BLDG MAINT SUPPLIES 2,802 3,482 2,790 2,500 2,500 2,500 0% 20-58 WATER/SEWER 6,066 4,753 3,284 2,000 2,000 3,000 50% MATERIALS & SUPPLIES 19,819 19,102 13,033 14,600 14,300 15,000 3% 30-21 TELEPHONE/FAX 1,777 1,439 1,418 1,900 1,900 1,400 -26% 30-22 POSTAGE 134,436 143,685 127,822 130,000 130,000 160,000 23% 30-23 ELECTRICITY 69,741 71,795 70,802 68,000 67,700 68,000 0% 30-24 HEATING OIL/GAS - 216 - 300 300 300 0% 30-25 ADVERTISEMENT 1,787 1,379 2,228 2,000 2,000 2,500 25% 30-27 SUBSCRIPTIONS AND DUES 520 520 545 600 600 600 0% 30-28 TRAINING/CONF/FOOD/TRAVEL 298 1,248 60 - - - 0% 30-31 CONTRACTUAL SERVICES 17,472 16,288 17,831 19,400 19,400 19,400 0% 30-43 ENVIRONMENTAL EXPENSES 3,733 3,574 4,508 3,500 3,500 3,500 0% 30-61 OFF EQUIP/REPAIRS & MAINT 9,490 8,573 9,904 10,600 10,600 11,000 4% 30-62 GASOLINE 2,672 2,249 1,732 2,500 2,200 1,800 -28% 30-66 OTHER EQUIP REPAIRS/MAINT 4,245 1,452 3,057 2,000 2,900 2,600 30% 30-67 RADIO REPAIRS/MAINTENANCE 546 1,508 165 200 200 200 0% ADMINISTRATIVE EXPENDITURES 246,717 253,925 240,070 241,000 241,300 271,300 13% OPERATING EXPENDITURES 608,514 526,235 517,809 535,600 542,800 570,500 7% 40-25 OTHER EQUIP - PURCHASE - - - - 55,000 - 0% CAPITAL OUTLAY - - - - 55,000 - 0% TOTAL EXPENDITURES $ 608,514 $ 526,235 $ 517,809 $ 535,600 $ 597,800 $ 570,500 7% OPERATING BUDGET STATS $ 608,514 $ 526,235 $ 517,809 $ 535,600 $ 542,800 $ 570,500 ACTUAL % OF OPER BUDGET 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% BUDGET % CHANGE -5% -14% -2% 3% 1% 5% REVENUES GENERAL FUND $ 608,514 $ 526,235 $ 517,809 $ 535,600 $ 542,800 $ 570,500 GOV. CAPITAL PROJECT FUND - - - - 55,000 - PERSONNEL BUDGETED FULL-TIME POSITIONS 6.0 4.0 4.0 3.0 3.0 3.0 BUDGETED PART-TIME POSITIONS - - - 1.0 1.0 1.0 263

FY 2016 Annual Operating Budget—Dover, Delaware Dover Fire Department Fiscal Year 2016 Organizational Chart CITY COUNCIL DOVER FIRE DEPARTMENT Fire Chief Deputy Fire Chief Fire Chief’s Assistant 1 (Volunteer) 1 (Volunteer) Assistant Fire Chief Fire Dispatcher 4 (Volunteer) 5 F/T & 1 P/T Fire Line Captain 2 (Volunteer) Fire Department Operations Administrative Positions Fire Chief - Mark A. Hall II President - Charlie Boyer Deputy Chief - Carleton Carey, Jr. Vice President - Tom Trader 1st. Asst. Chief - David Carey Secretary - Al Farling 2nd Asst. Chief - Glenn Whitt Treasurer - Terry Whitham 3rd Asst. Chief - Duane Reeder A and M Chairman - Allen Jones, Sr. 4th Asst. Chief - Ben Smetana 1st. Fire Line Captain - Michael O'Connor III 2nd Fire Line Captain - William Kelly II Updated: 5/4/15 264

FIRE DEPARTMENT 110-1400-514 2011-2012 2012-2013 2013-2014 2014-2015 2014-2015 2015-2016 % ACCT DESCRIPTION ACTUAL ACTUAL ACTUAL BUDGET REVISED PROPOSED CHANGE 10-11 SALARIES $ 225,740 $ 215,682 $ 196,608 $ 235,700 $ 235,700 $ 241,000 2% 10-12 OVERTIME 55,292 59,659 45,836 32,000 32,000 43,000 34% 10-13 TEMPORARY HELP 4,910 2,427 8,278 25,600 25,600 10,000 -61% 10-14 FICA TAXES 21,689 20,868 18,603 22,400 22,400 22,500 0% 10-15 HEALTH INSURANCE 42,001 41,370 36,155 43,800 43,800 56,700 29% 10-16 L I D INSURANCE 1,294 1,229 1,089 1,400 1,400 1,300 -7% 10-17 WORKERS COMPENSATION 33 1,461 518 600 600 900 50% 10-18 EDUCATIONAL ASSISTANCE 46 - - - - - 0% 10-19 PENSION 13,822 11,802 61,862 45,400 45,400 45,600 0% 10-20 OPEB 14,314 18,217 20,444 27,300 27,300 28,100 3% PERSONNEL COSTS 379,141 372,717 389,394 434,200 434,200 449,100 3% 20-32 SECURITY/SAFETY MATERIALS 490 625 500 600 600 600 0% MATERIALS & SUPPLIES 490 625 500 600 600 600 0% 3028 TRAINING/CONF/FOOD/TRAVEL - - - - - 2,300 100% 30-31 CONTRACTUAL SERVICES 281,292 281,300 281,300 281,300 281,300 332,700 18% ADMINISTRATIVE EXPENDITURES 281,292 281,300 281,300 281,300 281,300 335,000 19% OPERATING EXPENDITURES 660,923 654,642 671,194 716,100 716,100 784,700 10% 40-25 OTHER EQUIP - PURCHASE 40,900 - - 588,800 588,800 - -100% 40-31 CONSTRUCTION - PURCHASE 217,556 238,515 238,515 238,500 238,500 238,500 0% CAPITAL OUTLAY 258,456 238,515 238,515 827,300 827,300 238,500 -71% TOTAL EXPENDITURES $ 919,379 $ 893,156 $ 909,708 $ 1,543,400 $ 1,543,400 $ 1,023,200 -34% OPERATING BUDGET STATS $ 660,923 $ 654,642 $ 671,194 $ 716,100 $ 716,100 $ 784,700 ACTUAL % OF OPER BUDGET 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% BUDGET % CHANGE 1% -1% 3% 7% 0% 10% REVENUES GENERAL FUND $ 660,923 $ 654,642 $ 671,194 $ 716,100 $ 716,100 $ 784,700 GOV. CAPITAL PROJECT FUND 258,456 238,515 238,515 827,300 827,300 238,500 PERSONNEL BUDGETED FULL-TIME POSITIONS 6.0 6.0 6.0 6.0 6.0 6.0 BUDGETED PART-TIME POSITIONS 1.0 1.0 1.0 1.0 2.0 2.0 265

FY 2016 ANNUAL OPERATING BUDGET— DOVER, DELAWARE Human Resources Fiscal Year 2016 Organizational Chart CITY MANAGER HUMAN RESOURCES DIRECTOR 1 HUMAN RESOURCES COORDINATOR ADMINISTRATIVE ASSISTANT 1 1 266

HUMAN RESOURCES 110-3100-518 2011-2012 2012-2013 2013-2014 2014-2015 2014-2015 2015-2016 % ACCT DESCRIPTION ACTUAL ACTUAL ACTUAL BUDGET REVISED PROPOSED CHANGE 10-11 SALARIES $ 141,547 $ 160,713 $ 180,183 $ 179,700 $ 183,200 $ 175,700 -2% 10-14 FICA TAXES 10,313 11,663 13,282 13,700 13,700 13,400 -2% 10-15 HEALTH INSURANCE 23,251 29,829 30,157 33,800 33,800 46,100 36% 10-16 L I D INSURANCE 687 1,070 1,207 1,200 1,200 1,200 0% 10-17 WORKERS COMPENSATION 14 841 371 400 400 600 50% 10-18 EDUCATIONAL ASSISTANCE - 2,045 4,624 - 2,300 - 0% 10-19 PENSION 5,457 6,660 61,954 58,800 58,800 59,600 1% 10-20 OPEB 7,887 13,801 18,807 21,400 21,400 20,800 -3% PERSONNEL COSTS 189,156 226,622 310,585 309,000 314,800 317,400 3% 20-22 OFFICE SUPPLIES 496 645 685 800 800 800 0% 20-23 PRINTING AND DUPLICATING 2,916 3,098 2,865 3,000 3,000 3,000 0% 20-26 PROGRAM EXPENSES/SUPPLIES 350 548 205 500 500 800 60% 20-28 MEDICAL SUP & PHYSICALS 18,533 12,723 16,201 18,000 18,000 17,000 -6% 2031 BOOKS - - - - - 500 100% 20-32 SECURITY/SAFETY MATERIALS 5,580 504 544 500 500 500 0% 20-37 COMPUTER SOFTWARE - - - 300 300 - -100% 20-38 COMPUTER HARDWARE - 1,601 1,233 1,400 2,500 3,600 157% 20-48 PERSONNEL RELATED SUP 13,185 8,626 9,144 14,000 13,700 12,500 -11% MATERIALS & SUPPLIES 41,060 27,745 30,877 38,500 39,300 38,700 1% 30-21 TELEPHONE/FAX 408 388 432 500 500 500 0% 30-25 ADVERTISEMENT 2,126 4,746 10,073 6,000 11,000 4,500 -25% 30-27 SUBSCRIPTIONS AND DUES 355 415 375 900 900 900 0% 30-28 TRAINING/CONF/FOOD/TRAVEL 882 1,450 2,701 3,300 3,300 2,900 -12% 30-29 CONSULTING FEES 3,831 3,478 60 - - - 0% 30-31 CONTRACTUAL SERVICES 1,200 1,100 1,000 1,000 1,000 1,000 0% 30-39 IN-HOUSE TRAINING - 373 295 500 800 700 40% 30-41 UNEMPLOYMENT COMP EXPENSE 25,130 27,804 6,666 20,000 13,900 16,500 -18% 30-61 OFF EQUIP/REPAIRS & MAINT - 1,024 - - - - 0% ADMINISTRATIVE EXPENDITURES 33,932 40,778 21,602 32,200 31,400 27,000 -16% OPERATING EXPENDITURES 264,148 295,146 363,064 379,700 385,500 383,100 1% TOTAL EXPENDITURES $ 264,148 $ 295,146 $ 363,064 $ 379,700 $ 385,500 $ 383,100 1% OPERATING BUDGET STATS $ 264,148 $ 295,146 $ 363,064 $ 379,700 $ 385,500 $ 383,100 ACTUAL % OF OPER BUDGET 100% 100% 100% 100% 100% 100% BUDGET % CHANGE -20% 12% 23% 5% 2% -1% REVENUES GENERAL FUND $ 264,148 $ 295,146 $ 363,064 $ 379,700 $ 385,500 $ 383,100 PERSONNEL BUDGETED FULL-TIME POSITIONS 3.0 3.0 3.0 3.0 3.0 3.0 267

FY 2016 Annual Operating Budget—Dover, Delaware Information Technology Fiscal Year 2016 Organization Chart City Manager Information Technology Information Technology Director 1 AS400 System Administrator 1 (Vacant) LAN Analyst 1 Senior Programmer Analyst 1 Administrative Assistant 1 (Vacant) updated: 05.07.2015 268

INFORMATION TECHNOLOGY 110-2200-516 2011-2012 2012-2013 2013-2014 2014-2015 2014-2015 2015-2016 % ACCT DESCRIPTION ACTUAL ACTUAL ACTUAL BUDGET REVISED PROPOSED CHANGE 10-11 SALARIES $ 298,367 $ 252,748 $ 283,375 $ 279,800 $ 286,400 $ 250,500 -10% 10-13 TEMPORARY - - - - - 12,700.00 0% 10-14 FICA TAXES 22,274 18,829 20,913 21,400 21,400 20,100 -6% 10-15 HEALTH INSURANCE 52,024 36,043 39,584 39,700 39,700 39,500 -1% 10-16 L I D INSURANCE 2,011 1,722 1,949 2,000 2,000 1,300 -35% 10-17 WORKERS COMPENSATION 83 1,322 584 600 600 800 33% 10-18 EDUCATIONAL ASSISTANCE - - - - 1,300 - 0% 10-19 PENSION 13,511 12,231 107,175 100,400 100,400 87,500 -13% 10-20 OPEB 17,792 21,602 29,869 33,300 33,300 29,700 -11% PERSONNEL COSTS 406,062 344,497 483,450 477,200 485,100 442,100 -7% 20-21 FURNITURE/FIXTURES 176 - - - - - 0% 20-22 OFFICE SUPPLIES 205 1,075 1,144 1,100 1,100 1,100 0% 20-34 DATA PROCESSING SUPPLIES 1,186 1,141 767 1,000 1,000 1,000 0% 20-37 COMPUTER SOFTWARE 67,502 66,654 66,571 67,100 67,100 80,900 21% 20-38 COMPUTER HARDWARE 21,244 25,936 15,265 8,200 8,200 14,200 73% MATERIALS & SUPPLIES 90,137 94,806 83,748 77,400 77,400 97,200 26% 30-21 TELEPHONE/FAX 2,887 3,252 2,077 2,200 2,200 2,100 -5% 30-27 SUBSCRIPTIONS AND DUES 195 195 653 200 200 200 0% 30-28 TRAINING/CONF/FOOD/TRAVEL 318 847 126 1,700 1,700 1,500 -12% 30-31 CONTRACTUAL SERVICES 81,697 35,261 22,127 35,900 35,900 29,300 -18% 30-39 IN-HOUSE TRAINING 8,599 6,050 6,000 6,200 6,200 6,400 3% 30-61 OFF EQUIP/REPAIRS & MAINT 126,956 126,340 117,975 127,800 127,800 128,200 0% 30-62 GASOLINE 115 53 61 100 100 100 0% ADMINISTRATIVE EXPENDITURES 220,767 171,998 149,019 174,100 174,100 167,800 -4% OPERATING EXPENSES 716,966 611,301 716,217 728,700 736,600 707,100 -3% 40-28 COMPUTER HARDWARE/CAPITAL 14,330 102,589 - - - - 0% CAPITAL OUTLAY 14,330 102,589 - - - - 0% TOTAL EXPENDITURES $ 731,296 $ 713,890 $ 716,217 $ 728,700 $ 736,600 $ 707,100 -3% OPERATING BUDGET STATS $ 716,966 $ 611,301 $ 716,217 $ 728,700 $ 736,600 $ 707,100 ACTUAL % OF OPER BUDGET 100% 100% 100% 100% 100% 100% BUDGET % CHANGE - -15% 17% 2% 1% -4% REVENUES GENERAL FUND $ 716,966 $ 611,301 $ 716,217 $ 728,700 $ 736,600 $ 707,100 GOV. CAPITAL PROJECT FUND 14,330 87,589 (15,000) - - - DEMA GRANT - 15,000 15,000 - - - PERSONNEL BUDGETED FULL-TIME POSITIONS 5.0 5.0 5.0 5.0 5.0 4.0 269

FY 2016 Annual Operating Budget—Dover, Delaware Parks and Recreation Fiscal Year 2016 Organization Chart Planning & Community Development Director 1 Parks & Recreation Administrative Assistant 1 Recreation Specialist 1 Sports Coordinator 1 Recreation Center Coordinator 1 Office Assistant 1 Building Supervisor 2 P/P (1 Vacant) Service Center Clerk 2 P/P updated: 05.04.2015 270

RECREATION 110-1500-525 2015-2016 2011-2012 2012-2013 2013-2014 2014-2015 2014-2015 2015-2016 % Subs Abuse ACCT DESCRIPTION ACTUAL ACTUAL ACTUAL BUDGET REVISED PROPOSED CHANGE PROPOSED 10-11 SALARIES $ 408,874 $ 208,858 $ 217,283 $ 212,400 $ 216,800 $ 226,700 7% $ - 10-12 OVERTIME - 342 102 - - 1,500 0% - 10-13 TEMPORARY HELP 18,127 80,103 101,497 105,900 105,900 107,000 1% 55,800 10-14 FICA TAXES 31,887 21,390 23,734 24,100 24,100 25,600 6% 4,200 10-15 HEALTH INSURANCE 62,832 49,912 40,478 40,600 40,600 48,400 19% - 10-16 L I D INSURANCE 2,068 1,592 1,702 1,500 1,500 1,200 -20% - 10-17 WORKERS COMPENSATION 48 1,971 694 700 700 1,100 57% 200 10-19 PENSION 15,464 12,008 28,377 26,800 26,800 28,900 8% - 10-20 OPEB 18,711 18,175 22,655 25,300 25,300 27,000 7% - PERSONNEL COSTS 558,011 394,350 436,522 437,300 441,700 467,400 7% 60,200 20-22 OFFICE SUPPLIES 1,977 2,430 2,428 2,000 2,000 2,000 0% - 20-23 PRINTING AND DUPLICATING 2,189 2,033 2,193 2,300 2,300 3,800 65% - 20-26 PROGRAM EXPENSES/SUPPLIES 32,942 40,539 42,776 44,000 42,000 42,000 -5% 55,700 20-28 MEDICAL SUP & PHYSICALS - 15 221 - - - 0% - 20-29 UNIFORMS/UNIFORM ALLOW 65 - - - - - 0% - 20-32 SECURITY/SAFETY MATERIALS 1,368 1,427 993 500 500 500 0% - 20-37 COMPUTER SOFTWARE 2,258 2,175 5,525 2,700 2,700 2,700 0% - 20-38 COMPUTER HARDWARE 1,416 3,176 1,009 3,200 3,200 3,500 9% - 20-46 CITY BLDG MAINT SUPPLIES 6,229 5,326 4,132 3,000 5,000 5,000 67% - 20-58 WATER/SEWER 976 819 873 1,000 1,000 1,000 0% - MATERIALS & SUPPLIES 49,420 57,941 60,151 58,700 58,700 60,500 3% 55,700 30-21 TELEPHONE/FAX 2,636 2,040 1,927 2,200 2,200 2,100 -5% - 30-23 ELECTRICITY 72,716 66,921 57,775 78,000 78,000 78,000 0% - 30-24 HEATING OIL/GAS 3,943 5,827 12,197 12,000 12,000 12,000 0% - 30-27 SUBSCRIPTIONS AND DUES 185 165 165 2,200 2,200 2,200 0% - 30-28 TRAINING/CONF/FOOD/TRAVEL 373 1,314 2,560 500 500 500 0% - 30-31 CONTRACTUAL SERVICES 138,165 110,483 103,781 112,600 112,600 105,000 -7% - 30-61 OFF EQUIP/REPAIRS & MAINT 156 1,420 925 1,400 1,400 1,000 -29% - 30-62 GASOLINE 1,146 1,465 1,531 1,500 1,500 1,500 0% - 30-67 RADIO REPAIRS/MAINTENANCE 478 2,422 - - - - 0% - ADMINISTRATIVE EXPENDITURES 219,798 192,056 180,861 210,400 210,400 202,300 -4% - OPERATING EXPENDITURES 827,229 644,346 677,534 706,400 710,800 730,200 3% 115,900 40-25 OTHER EQUIP - PURCHASE - - - - 104,000 - 0% - 40-31 CONSTRUCTION - PURCHASE - 6,995 5,829 146,000 180,400 - -100% - CAPITAL OUTLAY - 6,995 5,829 146,000 284,400 - -100% - TOTAL EXPENDITURES $ 827,229 $ 651,341 $ 683,363 $ 852,400 $ 995,200 $ 730,200 -14% $ 115,900 OPERATING BUDGET STATS $ 827,229 $ 644,346 $ 677,534 $ 706,400 $ 710,800 $ 730,200 ACTUAL % OF OPER BUDGET 100% 100% 100% 100% 100% 100% BUDGET % CHANGE 4% -22% 5% 4% 1% 3% REVENUES GENERAL FUND $ 827,229 $ 644,346 $ 677,534 $ 706,400 $ 710,800 $ 730,200 $ - GOV. CAPITAL PROJECT FUND - 6,995 5,829 146,000 284,400 - - GRANT FUNDS - - - - - - 115,900 PERSONNEL BUDGETED FULL-TIME POSITIONS 6.0 5.0 5.0 5.0 5.0 5.0 - PP/TEMP 10.0 10.0 10.0 10.0 14.0 14.0 10.0 271

FY 2016 Annual Operating Budget—Dover, Delaware Dover Public Library Fiscal Year 2016 Organization Chart City Manager Library Administrative Asst Library Director BTOP Coordinator 1 1 1 Adult Services Youth Services Assistant Library Director Librarian II 1 1 (Vacant) Librarian I Librarian I 1 FT 1 FT Librarian I (2) Librarian I PT New 1 P/P (Vacant) Library Assistant 2 Library Assistant 2 P/P Librarian Assistant 1 P/P (Vacant) Circulation Services Technical Services Head of Circulation Svcs Lib II Head of Technical Svcs Lib I 1 1 Library Clerk I Library Assistant 2 1 Library Clerk I (6) P/P 1 New (Vacant) (1 Vacant) Library Pages 4 P/P updated: 04.22.2015 272

LIBRARY 110-1500-523 2015-2016 2011-2012 2012-2013 2013-2014 2014-2015 2014-2015 2015-2016 % GRANTS ACCT DESCRIPTION ACTUAL ACTUAL ACTUAL BUDGET REVISED PROPOSED CHANGE PROPOSED 10-11 SALARIES $ 672,032 $ 541,590 $ 571,704 $ 597,700 $ 602,400 $ 591,500 -1% $ - 10-12 OVERTIME 2,983 4,868 5,496 3,900 3,900 5,600 44% - 10-13 TEMPORARY HELP - 158,352 135,502 155,100 155,100 263,100 70% - 10-14 FICA TAXES 49,980 51,780 51,668 57,900 57,900 65,700 13% - 10-15 HEALTH INSURANCE 107,456 108,315 145,383 146,800 146,800 170,300 16% - 10-16 L I D INSURANCE 4,024 3,649 3,539 3,900 3,900 3,200 -18% - 10-17 WORKERS COMPENSATION 64 3,729 3,457 4,000 4,000 7,700 93% - 10-19 PENSION 28,163 27,074 112,239 105,000 105,000 110,200 5% - 10-20 OPEB 37,887 45,958 60,488 67,800 67,800 70,400 4% - PERSONNEL COSTS 902,589 945,314 1,089,476 1,142,100 1,146,800 1,287,700 13% - 20-21 FURNITURE/FIXTURES - - - - - - 0% 3,100 20-22 OFFICE SUPPLIES 2,299 1,497 1,497 1,500 1,500 1,500 0% 24,000 20-23 PRINTING AND DUPLICATING 2,098 2,088 2,194 - - - 0% 13,200 20-26 PROGRAM EXPENSES/SUPPLIES 3,221 3,193 3,199 600 600 600 0% 24,100 20-31 BOOKS 54,048 53,998 53,999 54,000 54,000 54,000 0% 129,200 20-32 SECURITY/SAFETY MATERIALS 288 288 1,200 1,800 1,800 3,300 83% - 20-37 COMPUTER SOFTWARE 1,407 42 1,000 500 500 500 0% - 20-38 COMPUTER HARDWARE 7,500 7,910 6,999 5,700 5,700 1,100 -81% - 20-46 CITY BLDG MAINT SUPPLIES 44,594 8,578 9,213 8,000 8,000 8,000 0% - 20-47 AUDIO VISUAL SUPPLIES 1,049 1,100 1,099 - - - 0% 75,100 20-58 WATER/SEWER 2,709 2,929 3,125 2,300 2,300 2,400 4% - MATERIALS & SUPPLIES 119,213 81,623 83,524 74,400 74,400 71,400 -4% 268,700 30-21 TELEPHONE/FAX 4,860 3,801 3,902 3,800 3,800 3,800 0% - 30-22 POSTAGE 36 - - - - - 0% 100 30-23 ELECTRICITY 36,397 81,200 84,115 76,000 76,000 93,000 22% - 30-24 HEATING OIL/GAS 5,040 19,288 16,007 15,000 15,000 6,000 -60% - 30-27 SUBSCRIPTIONS AND DUES 7,334 10,989 10,998 11,000 11,000 11,000 0% - 30-28 TRAINING/CONF/FOOD/TRAVEL 195 200 200 - - - 0% 2,000 30-31 CONTRACTUAL SERVICES 23,981 24,691 31,026 67,000 91,200 37,500 -44% 900.00 30-61 OFF EQUIP/REPAIRS & MAINT 1,468 2,500 2,500 3,800 3,800 3,800 0% 6,000 30-69 OFFICE EQUIPMENT/LEASE - - - - - - 0% 1,200 ADMINISTRATIVE EXPENDITURES 79,311 142,668 148,748 176,600 200,800 155,100 -12% 10,200 OPERATING EXPENDITURES 1,101,113 1,169,605 1,321,748 1,393,100 1,422,000 1,514,200 9% 278,900 40-25 OTHER EQUIP - PURCHASE - - 32,302 - - - 0% - 40-31 CONSTRUCTION - PURCHASE 12,118,028 4,070,899 80,566 - - - 0% - CAPITAL OUTLAY 12,118,028 4,070,899 112,868 - - - 0% - 20-26 FEDERAL PROG EXP/SUPPLIES - - - - - - 0% 2,500 TOTAL EXPENDITURES $ 13,219,141 $ 5,240,504 $ 1,434,616 $ 1,393,100 $ 1,422,000 $ 1,514,200 9% $ 281,400 OPERATING BUDGET STATS $ 1,101,113 $ 1,169,605 $ 1,321,748 $ 1,393,100 $ 1,422,000 $ 1,514,200 ACTUAL $ OF OPER BUDGET 100% 100% 100% 100% 100% 100% BUDGET % CHANGE 7% 6% 13% 5% 2% 6% REVENUES GENERAL FUND $ 1,101,113 $ 1,169,605 $ 1,321,748 $ 1,393,100 $ 1,422,000 $ 1,514,200 $ - GOV. CAPITAL PROJECT FUND 12,118,028 4,070,899 112,868 - - - - GRANT FUNDS - - - - - - 281,400 PERSONNEL BUDGETED FULL-TIME POSITIONS 12.0 13.0 13.0 13.0 13.0 13.0 BUDGETED PART-TIME POSITIONS 10.0 13.0 13.0 14.0 13.0 19.0 273

FY 2016 ANNUAL OPERATING Budget - DOVER, DELAWARE DOVER POLICE DEPARTMENT ORGANIZATIONAL CHART March 9, 2015 MAYOR City of Dover CHIEF OF POLICE 1 Sworn Administrative Assistant Chaplain 1 Civilian 2 (Appointed Volunteer Civilians) SORT Commander Deputy Chief Internal Affairs (not an additional position) 1 Sworn 1 Sworn CNT Commander (not an additional position) Operations Division Cmdr Administrative Division Cmdr 1 Sworn 1 Sworn Criminal Investigations Cmdr Patrol Unit Cmdr Special Enforcement Police Resource Manager 1 Sworn 1 Sworn Unit Commander 1 Civilian 1 Sworn Criminal Investigations “A” Platoon Special Enforcement Central Services Coordinator Supervisor MC and ERLS 1 Civilian Supervisor 11 Sworn 1 Sworn Program (1 Sworn) Building Craftsperson “B” Platoon 1 Civilian Detectives Section Motorcycle Section 12 Sworn 7 Sworn 4 Sworn “C” Platoon Evidence Technician and Crime Scene Investigations Parking Enforcement Photographer 11 Sworn 1 Sworn Section 1 Civilian 2 Civilians “D” Platoon Juvenile Section and School Animal Control Section Records Administrator 12 Sworn Resource Officers 1 Civilian 1 Civilian 4 Sworn Public Affairs Special Enforcement Records Unit 1 Sworn DVOC Supervisor Supervisor Community 6 Civilians 1 Sworn Policing 911 Manager 1 Sworn Planning and Training 1 Civilian DVOC Section 1 Sworn 4 Sworn Community Policing Communications Section Section (3 Sworn) Police Academy/ Field Training 11 Civilians 1 Pending 8 Recruit Officers TAC Section 3 Sworn Sex Offender Section 2 Civilians Accreditation Section 1 Sworn Gang Intelligence 1 Sworn Victim Services 1 Civilian Actual On Staff 91 Officers 274 LAN Analyst 31 Civilians (full time) 1 (Part time) 1 Fulltime and 1 Part time Civilian 123 Employees

POLICE - CIVILIAN 110-1700-542 2011-2012 2012-2013 2013-2014 2014-2015 2014-2015 2015-2016 % ACCT DESCRIPTION ACTUAL ACTUAL ACTUAL BUDGET REVISED PROPOSED CHANGE 10-11 SALARIES $ 1,320,878 $ 1,244,096 $ 1,298,961 $ 1,309,800 $ 1,385,000 $ 1,457,500 11% 10-12 OVERTIME 54,576 77,476 83,514 50,000 50,000 66,400 33% 10-13 TEMPORARY HELP - 17,150 - - - - 0% 10-14 FICA TAXES 103,953 100,041 102,029 103,900 107,600 116,500 12% 10-15 HEALTH INSURANCE 242,834 219,050 226,146 231,300 231,300 299,100 29% 10-16 L I D INSURANCE 7,294 6,610 7,156 7,700 7,700 7,300 -5% 10-17 WORKERS COMPENSATION 218 9,366 5,244 2,800 3,000 4,900 75% 10-18 EDUCATIONAL ASSISTANCE - 1,689 - - 3,800 - 0% 10-19 PENSION 56,326 54,768 332,636 305,700 307,100 327,300 7% 10-20 OPEB 79,218 100,254 130,280 146,500 146,500 170,800 17% PERSONNEL COSTS 1,865,297 1,830,502 2,185,966 2,157,700 2,242,000 2,449,800 14% POLICE - LAW ENFORCEMENT 110-1700-543 2011-2012 2012-2013 2013-2014 2014-2015 2014-2015 2015-2016 % ACCT DESCRIPTION ACTUAL ACTUAL ACTUAL BUDGET REVISED PROPOSED CHANGE 10-11 SALARIES 6,737,730 6,800,947 6,917,618 6,843,300 7,053,500 7,094,800 4% 10-12 OVERTIME 496,413 446,587 355,468 400,000 400,000 445,000 11% 10-14 FICA TAXES 542,714 535,448 539,893 505,700 502,000 536,000 6% 10-15 HEALTH INSURANCE 997,180 961,516 1,023,394 1,031,600 1,031,600 1,410,400 37% 10-16 L I D INSURANCE 26,044 26,326 26,247 27,000 27,000 28,500 6% 10-17 WORKERS COMPENSATION 7,944 349,846 284,518 255,000 254,800 340,200 33% 10-18 EDUCATIONAL ASSISTANCE 4,847 7,143 7,922 - 8,600 - 0% 10-19 PENSION 912,920 937,822 992,648 945,500 944,100 962,900 2% 10-20 OPEB 400,866 551,936 687,480 793,400 793,400 827,300 4% PERSONNEL COSTS 10,126,658 10,617,571 10,835,188 10,801,500 11,015,000 11,645,100 8% POLICE - EXTRA DUTY 110-1700-544 2011-2012 2012-2013 2013-2014 2014-2015 2014-2015 2015-2016 % ACCT DESCRIPTION ACTUAL ACTUAL ACTUAL BUDGET REVISED PROPOSED CHANGE 10-11 SALARIES 636,631 738,537 588,971 633,300 633,300 530,500 -16% 10-14 FICA TAXES 47,471 56,808 45,050 48,400 48,400 40,600 -16% 10-17 WORKERS COMPENSATION - 36,164 25,736 30,800 30,800 32,700 6% PERSONNEL COSTS 684,102 831,510 659,757 712,500 712,500 603,800 -15% TOTAL PERSONNEL COSTS $ 12,676,057 $ 13,279,582 $ 13,680,911 $ 13,671,700 $ 13,969,500 $ 14,698,700 8% POLICE - CADET PROGRAM IN POLICE GRANT FUND 710-1700-545 2011-2012 2012-2013 2013-2014 2014-2015 2014-2015 2015-2016 % ACCT DESCRIPTION ACTUAL ACTUAL ACTUAL BUDGET REVISED PROPOSED CHANGE 10-11 TEMPORARY HELP - - - - - 71,400 0% 10-14 FICA TAXES - - - - - 5,400 0% 10-17 WORKERS COMPENSATION - - - - - 3,500 0% PERSONNEL COSTS - - - - - 80,300 0% 275

POLICE - ADMINISTRATION 110-1700-541 2015-2016 2011-2012 2012-2013 2013-2014 2014-2015 2014-2015 2015-2016 % GRANTS ACCT DESCRIPTION ACTUAL ACTUAL ACTUAL BUDGET REVISED PROPOSED CHANGE PROPOSED 20-14 CI PETTY CASH DISBURSEMTS $ 1,172 $ 2,249 $ 3,243 $ 5,000 $ 10,000 $ 12,000 140% $ - 20-21 FURNITURE/FIXTURES 2,727 - - - - - 0% - 20-22 OFFICE SUPPLIES 6,493 7,310 10,016 7,000 6,500 7,000 0% - 20-23 PRINTING AND DUPLICATING 16,400 16,758 11,810 14,000 17,000 14,000 0% - 20-24 PHOTOGRAPHIC 838 1,514 696 1,200 1,200 1,000 -17% - 20-25 CUSTODIAL 4,348 4,528 4,489 4,200 4,200 4,200 0% - 20-26 PROGRAM EXPENSES/SUPPLIES 45,594 51,960 48,747 55,000 54,000 93,600 70% 156,000 20-28 MEDICAL SUP & PHYSICALS 24,565 24,008 25,143 23,000 23,000 26,000 13% - 20-29 UNIFORMS/UNIFORM ALLOW 100,687 83,467 81,653 90,100 89,600 115,600 28% - 20-31 BOOKS - 1,935 - 2,800 2,300 700 -75% - 20-32 SECURITY/SAFETY MATERIALS 19,019 18,905 18,807 18,500 18,500 21,100 14% - 20-36 ANIMAL CARE EXPENSES 3,177 4,711 3,692 17,000 17,000 17,000 0% - 20-37 COMPUTER SOFTWARE 13,328 11,591 12,267 13,000 12,500 13,000 0% - 20-38 COMPUTER HARDWARE 40,452 54,393 59,158 60,200 60,200 102,200 70% 50,000 20-46 CITY BLDG MAINT SUPPLIES 36,085 35,435 31,608 31,400 31,400 31,400 0% - 20-58 WATER/SEWER 3,178 3,181 1,593 1,700 1,700 2,700 59% - MATERIALS & SUPPLIES 318,063 321,945 312,923 344,100 349,100 461,500 34% 206,000 30-21 TELEPHONE/FAX 55,402 49,452 50,816 52,500 52,500 52,900 1% 15,000 30-22 POSTAGE 44 82 74 - - 100 0% - 30-23 ELECTRICITY 102,280 87,044 74,064 85,000 85,000 85,000 0% - 30-24 HEATING OIL/GAS 10,445 12,743 13,294 12,800 12,800 12,800 0% - 30-25 ADVERTISEMENT 753 3,000 1,039 2,100 2,100 2,000 -5% - 30-26 INSURANCE 19,659 10,733 12,115 15,000 15,000 20,000 33% - 30-27 SUBSCRIPTIONS AND DUES 2,828 2,992 4,666 4,300 4,300 5,100 19% - 30-28 TRAINING/CONF/FOOD/TRAVEL 16,970 19,492 30,404 27,700 27,700 44,900 62% 32,000 30-29 CONSULTING FEES/AUDIT FEES 7,892 9,393 9,933 9,000 9,000 9,000 0% 1,000 30-31 CONTRACTUAL SERVICES 31,580 52,126 55,635 64,600 64,600 68,600 6% 6,000 30-61 OFF EQUIP/REPAIRS & MAINT 37,492 38,692 26,291 38,700 38,700 38,700 0% - 30-62 GASOLINE 206,971 223,301 208,529 215,000 215,000 200,000 -7% - 30-63 AUTO REPAIRS/MAINTENANCE 107,799 128,788 159,401 136,900 136,900 207,600 52% - 30-67 RADIO REPAIRS/MAINTENANCE 16,456 17,909 17,068 18,700 18,700 20,000 7% - 30-68 RADIO EQUIPMENT/LEASE 45 980 520 500 500 14,500 2800% - ADMINISTRATIVE EXPENDITURES 616,616 656,727 663,849 682,800 682,800 781,200 14% 54,000 OPERATING EXPENDITURES 13,610,736 14,258,254 14,657,683 14,698,600 15,001,400 15,941,400 8% 260,000 40.21 OFFICE EQUIPMENT PURCHASE - - 8,865 - - - 0% - 40-22 AUTOMOBILES - PURCHASE 62,338 137,504 227,300 169,600 169,600 341,000 101% - 40-25 OTHER EQUIP - PURCHASE - 33,800 54,160 329,500 432,100 - -100% - 40-28 COMPUTER HARDWARE PURCH - - - - - - 0% - 40-31 CONSTRUCTION - PURCHASE - 19,715 51,800 - - 19,900 0% - 50-01 TRANSFER TO GENERAL FUND - - - - - - 0% 74,400 CAPITAL OUTLAY 62,338 191,019 342,125 499,100 601,700 360,900 -28% 74,400 TOTAL EXPENDITURES $ 13,673,074 $ 14,449,273 $ 14,999,808 $ 15,197,700 $ 15,603,100 $ 16,302,300 7% $ 334,400 OPERATING BUDGET STATS $ 13,610,736 $ 14,258,254 $ 14,657,683 $ 14,698,600 $ 15,001,400 $ 15,941,400 ACTUAL % OF OPER BUDGET 100% 101% 102% 103% 104% 102% BUDGET % CHANGE 6% 5% 3% 0% 2% 6% REVENUES GENERAL FUND $ 13,610,736 $ 14,258,254 $ 14,657,683 $ 14,698,600 $ 15,001,400 $ 15,941,400 GOV. CAPITAL PROJECT FUND 62,338 191,019 342,125 499,100 601,700 360,900 GRANT FUNDS - - - - - - $ 334,400 PERSONNEL BUDGETED FULL-TIME POSITIONS 122.0 122.0 122.0 124.0 124.0 135.0 - BUDGETED PART-TIME POSITIONS - GRANT FUNDED - - - - 6 6 276

Fiscal Year 2016 Organization Chart CITY COUNCIL TAX ASSESSOR City Assessor* 1 Administrative Assistant 1 Residential Assessment Tech. 1 * Appointed by Council 277

TAX ASSESSOR 110-1300-513 2011-2012 2012-2013 2013-2014 2014-2015 2014-2015 2015-2016 % ACCT DESCRIPTION ACTUAL ACTUAL ACTUAL BUDGET REVISED PROPOSED CHANGE 10-11 SALARIES $ 125,727 $ 124,167 $ 125,250 $ 126,500 $ 126,500 $ 128,500 2% 10-14 FICA TAXES 9,483 9,299 9,341 9,700 9,700 9,800 1% 10-15 HEALTH INSURANCE 17,992 16,571 17,182 17,200 17,200 32,300 88% 10-16 L I D INSURANCE 963 963 972 1,000 1,000 800 -20% 10-17 WORKERS COMPENSATION 15 795 422 300 300 400 33% 10-19 PENSION 6,878 6,925 21,126 19,800 19,800 20,200 2% 10-20 OPEB 7,840 10,706 13,441 15,100 15,100 15,300 1% PERSONNEL COSTS 168,898 169,427 187,735 189,600 189,600 207,300 9% 20-21 FURNITURE/FIXTURES - 32 - - - - 0% 20-22 OFFICE SUPPLIES 2,694 1,842 3,473 2,700 2,700 2,700 0% 20-23 PRINTING AND DUPLICATING 76 78 76 14,900 14,900 200 -99% 20-31 BOOKS 211 - - - - - 0% 20-37 COMPUTER SOFTWARE 55 - - - - 100 0% 20-38 COMPUTER HARDWARE 714 1,135 2,466 - - - 0% MATERIALS & SUPPLIES 3,750 3,087 6,014 17,600 17,600 3,000 -83% 30-21 TELEPHONE/FAX 1,033 1,218 1,098 1,100 1,100 1,100 0% 30-25 ADVERTISEMENT 379 775 615 1,400 1,400 1,000 -29% 30-27 SUBSCRIPTIONS AND DUES 808 850 875 900 900 900 0% 30-28 TRAINING/CONF/FOOD/TRAVEL 1,324 1,788 2,242 4,000 4,000 5,000 25% 30-31 CONTRACTUAL SERVICES 8,480 8,860 9,210 93,200 102,800 15,600 -83% 30-61 OFF EQUIP/REPAIRS & MAINT 239 - - - - - 0% 30-62 GASOLINE 783 1,432 1,607 1,700 1,700 1,000 -41% ADMINISTRATIVE EXPENDITURES 13,309 14,924 15,646 102,300 111,900 24,600 -76% OPERATING EXPENDITURES 185,957 187,438 209,395 309,500 319,100 234,900 -24% TOTAL EXPENDITURES $ 185,957 $ 187,438 $ 209,395 $ 309,500 $ 319,100 $ 234,900 -24% OPERATING BUDGET STATS $ 185,957 $ 187,438 $ 209,395 $ 309,500 $ 319,100 $ 234,900 ACTUAL % OF OPER BUDGET 100% 100% 100% 100% 100% 100% BUDGET % CHANGE -31% 1% 12% 48% 3% -26% REVENUES GENERAL FUND $ 185,957 $ 187,438 $ 209,395 $ 309,500 $ 319,100 $ 234,900 PERSONNEL BUDGETED FULL-TIME POSITIONS 3.0 3.0 3.0 3.0 3.0 3.0 BUDGETED PART-TIME POSITIONS - - - - - - 278

FY 2016 Annual Operating Budget—Dover, Delaware Planning & Inspections Fiscal Year 2016 Organization Chart City Council Planning & Inspections Director of Planning & Community Development Director 1 Planning Life Safety Code Enforcement Inspections & Permitting Secretary II Fire Marshal Inspector III Chief Building Inspector 1 1 1 1 Principal Planner Deputy Fire Marshal/ Inspector II Inspector II 1 Inspector II 2 2 1 Planner I Deputy Fire Marshal/ Inspector I Inspections/Licensing 2 Inspector I 2 1 Licensing & Permitting Planner I/Community Dev. Supervisor 1 1 Office Assistant II 2 updated: 05.04.2015 279

PLANNING/CDBG 110-1600-533/715-2014-596 2015-2016 2011-2012 2012-2013 2013-2014 2014-2015 2014-2015 2015-2016 % CDBG ACCT DESCRIPTION ACTUAL ACTUAL ACTUAL BUDGET REVISED PROPOSED CHANGE PROPOSED 10-11 SALARIES $ 257,998 $ 306,920 $ 299,850 $ 315,900 $ 321,200 $ 373,800 18% $ 36,000 10-12 OVERTIME 770 377 - - 700 0% - 10-13 TEMPORARY HELP 12,450 11,950 13,600 17,100 17,100 17,100 0% - 10-14 FICA TAXES 21,706 23,591 23,083 25,500 25,500 30,000 18% - 10-15 HEALTH INSURANCE 37,261 38,269 37,741 41,300 41,300 59,900 45% - 10-16 L I D INSURANCE 1,783 2,011 1,846 2,100 2,100 2,200 5% - 10-17 WORKERS COMPENSATION 37 1,978 664 600 600 1,200 100% - 10-19 PENSION 15,597 17,610 17,039 19,000 19,000 21,100 11% - 10-20 OPEB 17,256 25,919 31,408 37,600 37,600 44,500 18% - 10-21 COSTS ALLOCATED TO CDBG (51,853) (40,364) (48,800) (48,800) (34,800) -29% - PERSONNEL COSTS 364,088 377,165 385,245 410,300 415,600 515,700 26% 36,000 20-21 FURNITURE/FIXTURES - 77 - - - - 0% 20-22 OFFICE SUPPLIES 744 2,971 4,133 4,000 4,000 4,000 0% - 20-23 PRINTING AND DUPLICATING 1,164 8,272 9,855 9,500 9,500 6,000 -37% - 20-24 PHOTOGRAPHIC 175 - - - - - 0% - 20-31 BOOKS 570 570 717 700 700 700 0% - 20-37 COMPUTER SOFTWARE 336 - - - - 0% - 20-38 COMPUTER HARDWARE 4,866 5,591 - - - 0% - MATERIALS & SUPPLIES 7,855 11,890 20,297 14,200 14,200 10,700 -25% - 30-21 TELEPHONE/FAX 1,350 989 943 900 900 1,200 33% - 30-25 ADVERTISEMENT 830 2,122 1,759 2,000 2,000 2,000 0% - 30-27 SUBSCRIPTIONS AND DUES 3,519 1,529 2,055 2,500 2,500 2,500 0% - 30-28 TRAINING/CONF/FOOD/TRAVEL 677 2,239 1,482 4,200 4,200 4,200 0% - 30-31 CONTRACTUAL SERVICES - 1,267 10,305 10,000 10,000 10,000 0% - 30-67 RADIO REPAIRS/MAINTENANCE - 2,262 - - - - 0% - ADMINISTRATIVE EXPENDITURES 6,376 10,406 16,544 19,600 19,600 19,900 2% - OPERATING EXPENDITURES 378,319 399,461 422,085 444,100 449,400 546,300 23% 36,000 70-42 CLOSING COST/DWNPYMT PROG - - - - - - 60,000 70-43 CONNECTIONS COMM SUPPORT - - - - - - 7,400 70-44 DOVER INTERFAITH MINISTRY - - - - - - 27,000 70-59 MILFORD HOUSING H/O REHAB - - - - - - 35,300 70-63 HABITAT FOR HUMANITY - - - - - - 40,000 70-66 MILFORD HOUSING H/O REHAB - - - - - - 52,900 70-67 PEOPLE'S PLACE - - - - - - 6,800 CAPITAL OUTLAY - - - - - - 229,400 TOTAL EXPENDITURES $ 378,319 $ 399,461 $ 422,085 $ 444,100 $ 449,400 $ 546,300 23% $ 265,400 OPERATING BUDGET STATS $ 378,319 $ 399,461 $ 422,085 $ 444,100 $ 449,400 $ 546,300 ACTUAL %OF OPER BUDGET 100% 87% 90% 89% 89% 94% BUDGET % CHANGE -6% 6% 6% 5% 1% 22% REVENUES GENERAL FUND $ 378,319 $ 347,608 $ 381,722 $ 395,300 $ 400,600 $ 511,500 $ - CDBG GRANT - 51,853 40,364 48,800 48,800 34,800 265,400 PERSONNEL BUDGETED FULL-TIME POSITIONS 5.0 4.5 4.5 4.5 5.0 6.0 - PP/TEMP/COMMITTEES 14.0 14.0 14.0 14.0 14.0 14.0 - 280

LIFE SAFETY 110-1600-531 2011-2012 2012-2013 2013-2014 2014-2015 2014-2015 2015-2016 % ACCT DESCRIPTION ACTUAL ACTUAL ACTUAL BUDGET REVISED PROPOSED CHANGE 10-11 SALARIES $ 152,617 $ 132,521 $ 159,634 $ 153,700 $ 184,600 $ 148,400 -3% 10-12 OVERTIME 7,512 7,608 9,523 7,600 7,600 8,600 13% 10-14 FICA TAXES 12,181 10,566 12,590 12,300 12,300 12,000 -2% 10-15 HEALTH INSURANCE 22,454 17,776 20,314 20,400 20,400 24,400 20% 10-16 L I D INSURANCE 841 725 851 800 800 800 0% 10-17 WORKERS COMPENSATION 31 1,385 685 700 700 800 14% 10-19 PENSION 7,228 7,806 31,856 27,800 27,800 8,600 -69% 10-20 OPEB 9,180 10,458 15,730 17,300 17,300 17,000 -2% PERSONNEL COSTS 212,044 188,846 251,183 240,600 271,500 220,600 -8% 20-22 OFFICE SUPPLIES 792 - - - - - 0% 20-23 PRINTING AND DUPLICATING 565 - - - - - 0% 20-26 PROGRAM EXPENSES/SUPPLIES 2,955 445 - 3,200 3,200 3,200 0% 20-29 UNIFORMS/UNIFORM ALLOW 875 577 912 800 800 600 -25% 20-31 BOOKS 853 259 - 300 300 - -100% 20-32 SECURITY/SAFETY MATERIALS 26,079 1,729 685 1,500 400 400 -73% 20-33 SMALL TOOLS 126 37 51 100 100 100 0% 20-38 COMPUTER HARDWARE - 2,980 - 1,500 1,500 2,600 73% MATERIALS & SUPPLIES 32,245 6,027 1,648 7,400 6,300 6,900 -7% 30-21 TELEPHONE/FAX 3,702 3,830 2,546 2,200 2,200 2,100 -5% 30-27 SUBSCRIPTIONS AND DUES - 985 1,296 1,300 1,300 1,300 0% 30-28 TRAINING/CONF/FOOD/TRAVEL 2,422 420 3,648 2,000 2,000 1,500 -25% 30-31 CONTRACTUAL SERVICES 240,279 239,569 253,900 245,000 245,000 245,000 0% 30-62 GASOLINE 8,401 6,137 5,655 6,000 6,000 5,000 -17% 30-63 AUTO REPAIRS/MAINTENANCE 45 - - - - - 0% 30-67 RADIO REPAIRS/MAINTENANCE 250 1,722 - 300 300 300 0% ADMINISTRATIVE EXPENDITURES 255,099 252,664 267,044 256,800 256,800 255,200 -1% OPERATING EXPENDITURES 499,388 447,537 519,875 504,800 534,600 482,700 -4% 40-22 AUTOMOBILE/PURCHASE - - - - - 55,700 100% CAPITAL OUTLAY - - - - - 55,700 100% TOTAL EXPENDITURES $ 499,388 $ 447,537 $ 519,875 $ 504,800 $ 534,600 $ 538,400 7% OPERATING BUDGET STATS $ 499,388 $ 447,537 $ 519,875 $ 504,800 $ 534,600 $ 482,700 ACTUAL % OF OPER BUDGET 100% 100% 100% 100% 100% 100% BUDGET % CHANGE -4% -10% 16% -3% 6% -10% REVENUES GENERAL FUND $ 499,388 $ 447,537 $ 519,875 $ 504,800 $ 534,600 $ 482,700 GOV. CAPITAL PROJECT FUND - - - - - 55,626 PERSONNEL BUDGETED FULL-TIME POSITIONS 3.0 3.0 3.0 3.0 3.0 3.0 281

CODE ENFORCEMENT 110-1600-532 2011-2012 2012-2013 2013-2014 2014-2015 2014-2015 2015-2016 % ACCT DESCRIPTION ACTUAL ACTUAL ACTUAL BUDGET REVISED PROPOSED CHANGE 10-11 SALARIES $ 166,636 $ 203,806 $ 230,998 $ 224,700 $ 225,700 $ 215,200 -4% 10-12 OVERTIME 2,608 2,918 1,179 2,000 2,000 5,000 150% 10-13 TEMPORARY HELP 241 - 1,375 - - - 0% 10-14 FICA TAXES 12,277 15,425 17,257 17,300 17,300 16,800 -3% 10-15 HEALTH INSURANCE 45,748 40,899 38,525 40,900 40,900 56,900 39% 10-16 L I D INSURANCE 995 1,137 1,207 1,300 1,300 1,200 -8% 10-17 WORKERS COMPENSATION 33 2,034 944 900 900 1,100 22% 10-19 PENSION 7,353 9,683 68,495 64,800 64,800 64,600 0% 10-20 OPEB 10,712 17,581 22,545 26,700 26,700 25,600 -4% PERSONNEL COSTS 246,603 293,483 382,526 378,600 379,600 386,400 2% 20-22 OFFICE SUPPLIES 592 32 - - - - 0% 20-23 PRINTING AND DUPLICATING 3,076 - - - - - 0% 20-24 PHOTOGRAPHIC 193 - - - - - 0% 20-26 PROGRAM EXPENSES/SUPPLIES 11,838 18,210 16,755 18,000 18,000 18,000 0% 20-29 UNIFORMS/UNIFORM ALLOW 703 3,628 1,380 1,100 1,100 1,100 0% 20-31 BOOKS - - 379 400 400 - -100% 20-32 SECURITY/SAFETY MATERIALS 95 562 789 600 1,700 600 0% 20-33 SMALL TOOLS 32 43 - - - - 0% 20-38 COMPUTER HARDWARE - - 3,055 7,100 7,100 2,600 -63% MATERIALS & SUPPLIES 16,529 22,475 22,358 27,200 28,300 22,300 -18% 30-21 TELEPHONE/FAX 2,403 2,576 1,953 2,000 2,000 1,400 -30% 30-27 SUBSCRIPTIONS AND DUES - 295 165 100 100 200 100% 30-28 TRAINING/CONF/FOOD/TRAVEL 225 340 610 1,000 1,000 1,000 0% 30-31 CONTRACTUAL SERVICES - - - 4,000 4,000 4,000 0% 30-62 GASOLINE 5,621 5,006 5,219 5,500 5,500 5,000 -9% 30-67 RADIO REPAIRS/MAINTENANCE - 2,262 - - - - 0% ADMINISTRATIVE EXPENDITURES 8,249 10,479 7,947 12,600 12,600 11,600 -8% OPERATING EXPENDITURES 271,381 326,437 412,830 418,400 420,500 420,300 0% 40-22 AUTOMOBILES- PURCHASE - - 30,840 - - - 0% CAPITAL OUTLAY - - 30,840 - - - 0% TOTAL EXPENDITURES $ 271,381 $ 326,437 $ 443,670 $ 418,400 $ 420,500 $ 420,300 0% OPERATING BUDGET STATS $ 271,381 $ 326,437 $ 412,830 $ 418,400 $ 420,500 $ 420,300 ACTUAL % OF OPER BUDGET 100% 100% 100% 100% 100% 100% BUDGET % CHANGE -3% 20% 26% 1% 1% 0% REVENUES GENERAL FUND $ 271,381 $ 326,437 $ 412,830 $ 418,400 $ 420,500 $ 420,300 PERSONNEL BUDGETED FULL-TIME POSITIONS 4.0 4.0 4.0 5.0 5.0 5.0 282

INSPECTIONS 110-1600-534 2011-2012 2012-2013 2013-2014 2014-2015 2014-2015 2015-2016 % ACCT DESCRIPTION ACTUAL ACTUAL ACTUAL BUDGET REVISED PROPOSED CHANGE 10-11 SALARIES $ 296,873 $ 250,047 $ 248,150 $ 252,000 $ 254,600 $ 268,500 7% 10-12 OVERTIME - 853 1,840 1,800 1,800 1,800 0% 10-13 TEMPORARY HELP - 5,583 - - - - 0% 10-14 FICA TAXES 22,535 19,139 18,235 19,600 19,600 20,700 6% 10-15 HEALTH INSURANCE 66,416 52,674 53,663 56,200 56,200 66,000 17% 10-16 L I D INSURANCE 1,714 1,435 1,354 1,300 1,300 1,100 -15% 10-17 WORKERS COMPENSATION 48 2,174 845 800 800 1,100 38% 10-19 PENSION 14,908 12,809 70,321 66,700 66,700 71,300 7% 10-20 OPEB 19,020 21,609 26,219 30,000 30,000 32,000 7% PERSONNEL COSTS 421,514 366,324 420,625 428,400 431,000 462,500 8% 20-22 OFFICE SUPPLIES 3,118 99 - - - - 0% 20-23 PRINTING AND DUPLICATING 2,787 - - - - - 0% 20-26 PROGRAM EXPENSES/SUPPLIES - 101 - - - - 0% 20-29 UNIFORMS/UNIFORM ALLOW 1,174 660 530 500 500 500 0% 20-31 BOOKS - - 1,869 1,400 1,400 - -100% 20-32 SECURITY/SAFETY MATERIALS 487 418 400 400 400 400 0% 20-33 SMALL TOOLS 31 - - - - - 0% 20-38 COMPUTER HARDWARE 2,063 2,606 3,443 - - 6,400 0% MATERIALS & SUPPLIES 9,660 3,884 6,242 2,300 2,300 7,300 217% 30-21 TELEPHONE/FAX 3,672 3,528 3,076 3,200 3,200 3,000 -6% 30-27 SUBSCRIPTIONS AND DUES 365 666 380 400 400 600 50% 30-28 TRAINING/CONF/FOOD/TRAVEL 1,353 413 903 800 800 800 0% 30-31 CONTRACTUAL SERVICES - 40 3,993 7,500 7,500 7,500 0% 30-33 DEMOLITION EXPENSES 103,143 103,820 216,980 150,000 159,700 175,000 17% 30-61 OFF EQUIP/REPAIRS & MAINT 3,029 3,029 3,014 3,000 3,000 3,000 0% 30-62 GASOLINE 6,425 6,520 5,366 6,500 6,500 5,000 -23% 30-63 AUTO REPAIRS/MAINTENANCE 45 - - - - - 0% 30-67 RADIO REPAIRS/MAINTENANCE 893 5,678 - - - - 0% ADMINISTRATIVE EXPENDITURES 118,925 123,694 233,713 171,400 181,100 194,900 14% OPERATING EXPENSES 550,099 493,902 660,580 602,100 614,400 664,700 10% TOTAL EXPENDITURES $ 550,099 $ 493,902 $ 660,580 $ 602,100 $ 614,400 $ 664,700 10% OPERATING BUDGET STATS $ 550,099 $ 493,902 $ 660,580 $ 602,100 $ 614,400 $ 664,700 ACTUAL % OF OPER BUDGET 100% 100% 100% 100% 100% 100% BUDGET % CHANGE 1% -10% 34% -9% 2% 8% REVENUES GENERAL FUND $ 550,099 $ 493,902 $ 660,580 $ 602,100 $ 614,400 $ 664,700 PERSONNEL BUDGETED FULL-TIME POSITIONS 7.0 7.0 7.0 6.0 6.0 6.0 283

CITY MANAGER DEPARTMENT OF PUBLIC WORKS - GENERAL FUND FISCAL YEAR 2016 ORGANIZATION CHART PUBLIC WORKS DIRECTOR / CITY ENGINEER 1 (accounted for in Public Works Administration) FLEET FACILITIES SANITATION STREET & STORMWATER GROUNDS & PARKS PUBLIC WORKS GENERAL FUND MAINTENANCE MANAGEMENT MAINTENANCE MAINTENANCE ADMINISTRATION ENG. & INSPECTIONS PUBLIC WORKS OPERATIONS MANAGER WATER / WASTEWATER MANAGER 1 (accounted for in Public Works Administration) 1 (accounted for in Water / Wastewater Engineering & Inspections) FLEET, FACILITIES & SANITATION FIELD SUPERVISOR II STREETS FIELD SUPER. I GROUNDS FIELD SUPER. II ADMINISTRATIVE ASSIST. CIVIL ENGINEER I 1 (accounted for in Fleet Maintenance) 1 1 2 1 MECHANIC II CRAFTSPERSON II CREW LEADER CREW LEADER CREW LEADER GIS MANAGER ENVIRONMENTAL SCIENTIST 2 2 1 1 1 1 1 MECHANIC I CRAFTSPERSON I MOTOR EQUIP. OPERATOR III LEAD LABORER ARBORIST GIS TECHNICIAN CONSTRUCTION MANAGER 3 1 3 1 2 1 1 (in W/WW Eng. & Insp.) 6 ELECTRICIAN II MOTOR EQUIP. OPERATOR II MOTOR EQUIP. OPERATOR II NURSERY PERSON II 6 PUBLIC WORKS INSPECTOR 1 3 2 1 1 CUSTODIAN II MOTOR EQUIP. OPERATOR I MOTOR EQUIP. OPERATOR I NURSERY PERSON I 3 1 3 2 1 CUSTODIAN I 10 SIGN / STREET PAINTER LEAD LABORER 2 1 2 7 8 LABORER II 1 MOTOR EQUIP. OPERATOR II 3 SMALL ENGINE MECHANIC I 1 53 13 284

PUBLIC WORKS - ADMINISTRATION 110-2400-551 2011-2012 2012-2013 2013-2014 2014-2015 2014-2015 2015-2016 % ACCT DESCRIPTION ACTUAL ACTUAL ACTUAL BUDGET REVISED PROPOSED CHANGE 10-11 SALARIES $ 239,976 $ 245,607 $ 298,489 $ 297,800 $ 300,700 $ 355,200 19% 10-12 OVERTIME 1,043 541 - - - - 0% 10-14 FICA TAXES 18,215 17,941 22,057 22,700 22,700 27,200 20% 10-15 HEALTH INSURANCE 35,543 40,150 44,652 44,800 44,800 66,300 48% 10-16 L I D INSURANCE 1,530 1,562 1,949 2,000 2,000 2,000 0% 10-17 WORKERS COMPENSATION 27 1,554 793 600 600 1,200 100% 10-19 PENSION 10,925 10,479 15,565 96,100 96,100 105,800 10% 10-20 OPEB 11,774 19,711 28,805 35,400 35,400 42,100 19% PERSONNEL COSTS 319,033 337,544 412,311 499,400 502,300 599,800 20% 20-22 OFFICE SUPPLIES 2,526 2,923 3,492 3,700 3,700 3,500 -5% 20-23 PRINTING AND DUPLICATING 1,323 1,549 2,819 2,000 2,000 3,000 50% 20-31 BOOKS - - - - 200 - 0% 20-32 SECURITY/SAFETY MATERIALS - 125 - - - - 0% 20-37 COMPUTER SOFTWARE 233 - - 300 300 300 0% 20-38 COMPUTER HARDWARE 1,584 8,215 50 2,800 3,000 4,300 54% MATERIALS & SUPPLIES 5,666 12,812 6,361 8,800 9,200 11,100 26% 30-21 TELEPHONE/FAX 3,235 3,127 2,565 1,600 1,600 1,900 19% 30-27 SUBSCRIPTIONS AND DUES 846 - 240 900 1,000 7,000 678% 30-28 TRAINING/CONF/FOOD/TRAVEL 180 - 3,149 3,000 2,700 4,500 50% 30-31 CONTRACTUAL SERVICES 1,055 - 6,979 - - 7,000 0% 30-62 GASOLINE 2,292 2,432 412 600 600 600 0% 30-67 RADIO REPAIRS/MAINTENANCE 205 4,203 408 500 700 700 40% ADMINISTRATIVE EXPENDITURES 7,813 9,762 13,754 6,600 6,600 21,700 229% OPERATING EXPENDITURES 332,512 360,118 432,425 514,800 518,100 632,600 23% TOTAL EXPENDITURES $ 332,512 $ 360,118 $ 432,425 $ 514,800 $ 518,100 $ 632,600 23% OPERATING BUDGET STATS $ 332,512 $ 360,118 $ 432,425 $ 514,800 $ 518,100 $ 632,600 ACTUAL % OF OPER BUDGET 100% 100% 100% 100% 100% 100% BUDGET % CHANGE -14% 8% 20% 19% 1% 22% REVENUES GENERAL FUND $ 332,512 $ 360,118 $ 432,425 $ 514,800 $ 518,100 $ 632,600 PERSONNEL BUDGETED FULL-TIME POSITIONS 5.0 6.0 6.0 5.0 5.0 6.0 285

FACILITIES MANAGEMENT 110-2500-552 2011-2012 2012-2013 2013-2014 2014-2015 2014-2015 2015-2016 % ACCT DESCRIPTION ACTUAL ACTUAL ACTUAL BUDGET REVISED PROPOSED CHANGE 10-11 SALARIES $ 532,949 $ 333,501 $ 255,857 $ 286,100 $ 289,500 $ 295,700 3% 10-12 OVERTIME 1,058 8,514 14,238 10,500 10,500 10,500 0% 10-13 TEMPORARY HELP 2,839 - 10,793 - - - 0% 10-14 FICA TAXES 40,056 26,417 20,731 22,700 22,700 23,400 3% 10-15 HEALTH INSURANCE 98,345 65,290 51,644 62,000 62,000 74,300 20% 10-16 L I D INSURANCE 2,238 1,566 1,303 1,500 1,500 1,500 0% 10-17 WORKERS COMPENSATION 864 13,880 9,278 9,700 9,700 12,300 27% 10-19 PENSION 17,672 12,246 69,714 67,200 67,200 79,900 19% 10-20 OPEB 31,250 25,502 26,821 33,900 33,900 35,100 4% PERSONNEL COSTS 727,271 486,916 460,378 493,600 497,000 532,700 8% 20-22 OFFICE SUPPLIES 92 - - - - - 0% 20-25 CUSTODIAL 7,942 8,137 7,453 8,500 8,500 8,500 0% 20-29 UNIFORMS/UNIFORM ALLOW 3,594 2,628 2,429 2,000 3,000 2,900 45% 20-32 SECURITY/SAFETY MATERIALS 552 16,790 7,254 200 200 200 0% 20-33 SMALL TOOLS 36 396 427 3,200 3,200 2,700 -16% 20-38 COMPUTER HARDWARE - - - 1,300 1,300 300 -77% 20-46 CITY BLDG MAINT SUPPLIES 5,850 9,017 10,675 9,000 9,000 9,000 0% 20-58 WATER/SEWER 1,473 1,645 1,618 1,700 1,700 1,700 0% 20-61 ELEC MATERIALS/SUPPLIES 2,287 1,434 2,607 2,200 2,200 2,200 0% MATERIALS & SUPPLIES 21,826 40,046 32,462 28,100 29,100 27,500 -2% 30-21 TELEPHONE/FAX 1,368 1,223 1,231 1,200 1,200 1,200 0% 30-23 ELECTRICITY 82,953 76,404 67,537 79,200 78,200 70,000 -12% 30-24 HEATING OIL/GAS 1,121 2,250 1,095 6,400 6,400 6,400 0% 30-27 SUBSCRIPTIONS & DUES - - - 100 100 100 0% 30-28 TRAINING/CONF/FOOD/TRAVEL 60 - 185 100 100 100 0% 30-31 CONTRACTUAL SERVICES 1,558 22,500 66,471 62,400 71,600 66,500 7% 30-62 GASOLINE 5,721 4,133 4,386 6,000 6,000 4,000 -33% 30-67 RADIO REPAIRS/MAINTENANCE 546 5,277 570 700 700 500 -29% ADMINISTRATIVE EXPENDITURES 93,327 111,787 141,475 156,100 164,300 148,800 -5% OPERATING EXPENDITURES 842,424 638,748 634,315 677,800 690,400 709,000 5% 40-23 TRUCKS-PURCHASE - - 17,795 - - - 0% 40-25 OTHER EQUIP - PURCHASE - 109,875 - - - - 0% CAPITAL OUTLAY - 109,875 17,795 - - - 0% TOTAL EXPENDITURES $ 842,424 $ 748,623 $ 652,110 $ 677,800 $ 690,400 $ 709,000 5% OPERATING BUDGET STATS $ 842,424 $ 638,748 $ 634,315 $ 677,800 $ 690,400 $ 709,000 ACTUAL % OF OPER BUDGET 100% 100% 100% 100% 100% 100% BUDGET % CHANGE -8% -24% -1% 7% 2% 3% REVENUES GENERAL FUND $ 842,424 $ 638,748 $ 634,315 $ 677,800 $ 690,400 $ 709,000 GOV. CAPITAL PROJECT FUND - 16,875 (75,205) - - - HOMELAND SECURITY GRANT - 93,000 93,000 - - - PERSONNEL BUDGETED FULL-TIME POSITIONS 12.0 9.0 9.0 7.0 7.0 7.0 PP/TEMP 1.0 - - - - - 286

FLEET MAINTENANCE 110-2800-572 2011-2012 2012-2013 2013-2014 2014-2015 2014-2015 2015-2016 % ACCT DESCRIPTION ACTUAL ACTUAL ACTUAL BUDGET REVISED PROPOSED CHANGE 10-11 SALARIES $ 270,008 $ 232,542 $ 269,081 $ 278,200 $ 301,200 $ 267,700 -4% 10-12 OVERTIME 305 773 10,451 1,000 1,000 1,000 0% 10-14 FICA 19,884 17,075 20,298 21,400 21,400 20,500 -4% 10-15 HEALTH INSURANCE 68,238 57,495 64,275 69,500 69,500 74,800 8% 10-16 LID 1,307 1,140 1,367 1,500 1,500 1,500 0% 10-17 WORKMANS COMP. 176 9,455 9,233 9,200 9,200 10,800 17% 10-19 PENSION 13,493 11,792 66,730 63,200 63,200 48,300 -24% 10-20 OPEB 16,174 19,635 27,783 33,000 33,000 31,800 -4% PERSONNEL COSTS 389,585 349,907 469,219 477,000 500,000 456,400 -4% 20-22 OFFICE SUPPLIES 108 - - - - - 0% 20-23 PRINTING AND DUPLICATING 73 - 101 200 - - -100% 20-26 PROGRAM EXPENSES/SUPPLIES 335,743 269,763 287,716 275,000 275,000 275,000 0% 20-29 UNIFORMS/UNIFORM ALLOW 1,226 1,036 1,312 1,400 1,400 1,400 0% 20-31 BOOKS 599 399 599 600 500 600 0% 20-32 SECURITY/SAFETY MATERIALS 832 730 1,094 300 300 400 33% 20-33 SMALL TOOLS 2,015 883 1,658 2,000 2,000 17,000 750% 20-37 COMPUTER SOFTWARE 3,990 1,389 5,781 7,300 7,300 6,200 -15% 20-38 COMPUTER HARDWARE - - - 1,300 1,300 - -100% 20-46 MATERIALS & SUPPLIES 6 - 7,986 6,500 6,500 6,500 0% MATERIALS & SUPPLIES 344,592 274,200 306,247 294,600 294,300 307,100 4% 30-21 TELEPHONE/FAX 437 494 649 1,100 1,100 1,100 0% 30-28 TRAINING/CONF/FOOD/TRAVEL - 50 346 900 1,100 2,500 178% 30-31 CONTRACTUAL SERVICES 350 - 24 500 500 500 0% 30-43 ENVIRONMENTAL EXPENSES - 400 200 - 200 200 0% 30-62 GASOLINE 2,128 1,946 2,909 2,000 2,000 1,800 -10% 30-67 RADIO REPAIRS/MAINTENANCE 68 3,689 491 600 500 500 -17% ADMINISTRATIVE EXPENDITURES 2,983 6,580 4,619 5,100 5,400 6,600 29% OPERATING EXPENDITURES 737,160 630,686 780,084 776,700 799,700 770,100 -1% 40-23 TRUCKS - PURCHASE - - - - - 84,000 0% CAPITAL OUTLAY - - - - - 84,000 0% TOTAL EXPENDITURES $ 737,160 $ 630,686 $ 780,084 $ 776,700 $ 799,700 $ 854,100 10% OPERATING BUDGET STATS $ 737,160 $ 630,686 $ 780,084 $ 776,700 $ 799,700 $ 770,100 ACTUAL % OF OPER BUDGET 100% 100% 100% 100% 100% 100% BUDGET % CHANGE 4% -14% 24% 0% 3% -4% REVENUES GENERAL FUND $ 737,160 $ 630,686 $ 780,084 $ 776,700 $ 799,700 $ 770,100 GOV. CAPITAL PROJECT FUND 87,600 PERSONNEL BUDGETED FULL-TIME POSITIONS 6.0 6.0 6.0 6.0 6.0 6.0 287

GROUNDS 110-1500-522 2011-2012 2012-2013 2013-2014 2014-2015 2014-2015 2015-2016 % ACCT DESCRIPTION ACTUAL ACTUAL ACTUAL BUDGET REVISED PROPOSED CHANGE 10-11 SALARIES $ 563,872 $ 523,548 $ 443,450 $ 446,600 $ 448,200 $ 495,300 11% 10-12 OVERTIME 15,021 10,147 15,057 11,100 11,100 8,300 -25% 10-13 TEMPORARY HELP - - - 8,700 8,700 - -100% 10-14 FICA TAXES 43,754 40,186 34,204 35,000 35,000 38,500 10% 10-15 HEALTH INSURANCE 120,386 109,647 79,607 115,400 115,400 149,600 30% 10-16 L I D INSURANCE 3,206 3,011 2,135 2,600 2,600 2,800 8% 10-17 WORKERS COMPENSATION 460 21,398 15,134 15,100 15,100 20,000 32% 10-19 PENSION 25,289 24,355 183,267 171,100 171,100 152,300 -11% 10-20 OPEB 35,766 45,640 40,196 52,100 52,100 57,900 11% PERSONNEL COSTS 807,754 777,930 813,049 857,700 859,300 924,700 8% 20-22 OFFICE SUPPLIES 127 - - - - - 0% 20-25 CUSTODIAL 129 235 285 300 300 300 0% 20-26 PROGRAM EXPENSES/SUPPLIES 60,073 40,882 32,194 41,700 40,900 41,000 -2% 20-28 MEDICAL SUP & PHYSICALS 3,151 - - - - - 0% 20-29 UNIFORMS/UNIFORM ALLOW 3,578 3,021 2,245 3,400 3,400 3,200 -6% 20-32 SECURITY/SAFETY MATERIALS 2,242 2,725 2,634 1,800 1,800 1,800 0% 20-33 SMALL TOOLS 2,939 2,945 3,135 3,000 3,000 3,000 0% 2038 COMPUTER HARDWARE - - - - - 400 100% 20-44 SAND AND SALT - 315 353 400 1,200 600 50% 20-46 CITY BLDG MAINT SUPPLIES 858 322 35 400 400 800 100% 20-58 WATER/SEWER 3,119 2,718 1,854 3,000 3,000 3,200 7% MATERIALS & SUPPLIES 76,216 53,163 42,736 54,000 54,000 54,300 1% 30-21 TELEPHONE/FAX 655 507 471 600 600 1,100 83% 30-23 ELECTRICITY 3,404 2,899 2,078 2,300 2,300 4,300 87% 30-24 HEATING OIL/GAS 3,604 5,446 6,093 4,500 4,500 7,500 67% 30-27 SUBSCRIPTIONS AND DUES 570 435 260 800 800 500 -38% 30-28 TRAINING/CONF/FOOD/TRAVEL 1,252 1,226 1,121 3,000 3,000 1,600 -47% 30-31 CONTRACTUAL SERVICES 3,115 23,282 96,425 118,000 123,500 141,500 20% 30-43 ENVIRONMENTAL EXPENSES - 13,148 3,335 3,500 3,500 3,700 6% 30-44 AGENCY BILLING-TEMP HELP 11,636 20,507 22,040 32,300 32,300 31,000 -4% 30-62 GASOLINE 35,558 32,037 29,384 30,000 30,000 25,000 -17% 30-65 MAINT EQUIP REPAIRS/MAINT 19,350 14,291 12,163 15,000 15,000 15,000 0% 30-67 RADIO REPAIRS/MAINTENANCE 1,850 16,618 1,979 2,100 2,100 1,300 -38% ADMINISTRATIVE EXPENDITURES 80,994 130,396 175,349 212,100 217,600 232,500 10% OPERATING EXPENSES 964,964 961,489 1,031,134 1,123,800 1,130,900 1,211,500 8% 40-23 TRUCKS - PURCHASE - 39,157 - 68,100 68,100 94,900 39% 40-24 MAINT EQUIP - PURCHASE - 72,610 30,249 - 18,600 106,200 0% CAPITAL OUTLAY - 111,767 30,249 68,100 86,700 201,100 195% TOTAL EXPENDITURES $ 964,964 $ 1,073,256 $ 1,061,383 $ 1,191,900 $ 1,217,600 $ 1,412,600 19% OPERATING BUDGET STATS $ 964,964 $ 961,489 $ 1,031,134 $ 1,123,800 $ 1,130,900 $ 1,211,500 ACTUAL % OF OPER BUDGET 100% 100% 100% 100% 100% 100% BUDGET % CHANGE -2% 0% 7% 9% 1% 7% REVENUES GENERAL FUND $ 964,964 $ 961,489 $ 1,031,134 $ 1,123,800 $ 1,130,900 $ 1,211,500 GOV. CAPITAL PROJECT FUND - 111,767 30,249 68,100 86,700 201,100 PERSONNEL BUDGETED FULL-TIME POSITIONS 14.0 14.0 13.0 13.0 13.0 13.0 BUDGETED PART-TIME POSITIONS - - - - 1.0 - 288

SANITATION 110-1800-555 2011-2012 2012-2013 2013-2014 2014-2015 2014-2015 2015-2016 % ACCT DESCRIPTION ACTUAL ACTUAL ACTUAL BUDGET REVISED PROPOSED CHANGE 10-11 SALARIES $ 409,952 $ 365,463 $ 394,767 $ 417,600 $ 419,700 $ 372,300 -11% 10-12 OVERTIME 13,843 13,406 26,215 12,100 12,100 12,100 0% 10-14 FICA TAXES 31,791 28,287 31,054 33,000 33,000 29,400 -11% 10-15 HEALTH INSURANCE 99,685 82,618 82,708 91,500 91,500 106,500 16% 10-16 L I D INSURANCE 2,441 2,074 2,062 2,300 2,300 1,800 -22% 10-17 WORKERS COMPENSATION 313 15,368 13,913 14,100 14,100 15,500 10% 10-19 PENSION 19,055 17,298 121,754 124,400 124,400 104,300 -16% 10-20 OPEB 26,105 31,803 41,110 49,500 49,500 43,800 -12% PERSONNEL COSTS 603,185 556,317 713,584 744,500 746,600 685,700 -8% 20-22 OFFICE SUPPLIES 141 - - - - - 0% 20-23 PRINTING AND DUPLICATING 1,704 - - - - - 0% 20-26 PROGRAM EXPENSES/SUPPLIES 80,306 11,476 20,586 20,000 35,000 20,000 0% 20-29 UNIFORMS/UNIFORM ALLOW 2,981 2,190 2,272 2,900 2,900 2,700 -7% 20-32 SECURITY/SAFETY MATERIALS 2,513 1,983 2,496 1,100 1,100 1,000 -9% 20-33 SMALL TOOLS 286 246 287 400 400 400 0% 20-38 COMPUTER HARDWARE - - - - - 400 0% 20-46 CITY BLDG MAINT SUPPLIES 513 865 1,612 500 500 500 0% MATERIALS & SUPPLIES 88,444 16,762 27,253 24,900 39,900 25,000 0% 30-21 TELEPHONE/FAX 491 468 571 500 500 300 -40% 30-25 ADVERTISEMENT 1,013 453 673 1,100 1,100 700 -36% 30-28 TRAINING/CONF/FOOD/TRAVEL 11 40 610 100 2,000 100 0% 30-31 CONTRACTUAL SERVICES 1,219,136 1,215,190 1,252,670 1,308,700 1,266,500 1,306,600 0% 30-43 ENVIRONMENTAL EXPENSES 3,402 5,837 1,951 5,000 5,000 5,000 0% 30-44 AGENCY BILLING-TEMP HELP 42,277 74,418 38,506 36,500 41,700 35,000 -4% 30-62 GASOLINE 126,906 120,912 120,599 125,000 119,800 100,000 -20% 30-64 TRUCK REPAIRS/MAINTENANCE 145 - (1,856) - - - 0% 30-67 RADIO REPAIRS/MAINTENANCE 1,207 13,490 1,666 1,700 1,700 1,500 -12% ADMINISTRATIVE EXPENDITURES 1,394,588 1,430,808 1,415,391 1,478,600 1,438,300 1,449,200 -2% OPERATING EXPENSES 2,086,217 2,003,887 2,156,228 2,248,000 2,224,800 2,159,900 -4% 40-23 TRUCKS - PURCHASE 136,500 130,758 387,504 256,500 256,500 449,000 75% CAPITAL OUTLAY 136,500 130,758 387,504 256,500 256,500 449,000 75% TOTAL EXPENDITURES $ 2,222,717 $ 2,134,645 $ 2,543,731 $ 2,504,500 $ 2,481,300 $ 2,608,900 4% OPERATING BUDGET STATS $ 2,086,217 $ 2,003,887 $ 2,156,228 $ 2,248,000 $ 2,224,800 $ 2,159,900 ACTUAL % OF OPER BUDGET 100% 100% 100% 100% 100% 100% BUDGET % CHANGE -4% -4% 8% 4% -1% -3% REVENUES GENERAL FUND $ 2,086,217 $ 2,003,887 $ 2,156,228 $ 2,248,000 $ 2,224,800 $ 2,159,900 GOV. CAPITAL PROJECT FUND 136,500 130,758 387,504 256,500 256,500 449,000 PERSONNEL BUDGETED FULL-TIME POSITIONS 13.0 11.0 11.0 11.0 11.0 10.0 289

STREET 110-1800-554 2011-2012 2012-2013 2013-2014 2014-2015 2014-2015 2015-2016 % ACCT DESCRIPTION ACTUAL ACTUAL ACTUAL BUDGET REVISED PROPOSED CHANGE 10-11 SALARIES $ 413,756 $ 363,352 $ 241,483 $ 283,900 $ 278,600 $ 287,200 1% 10-12 OVERTIME 5,026 4,465 10,867 4,700 4,700 4,100 -13% 10-14 FICA TAXES 31,500 28,166 18,354 22,000 22,000 22,300 1% 10-15 HEALTH INSURANCE 88,428 74,415 64,580 89,100 89,100 104,100 17% 10-16 L I D INSURANCE 2,308 1,905 1,329 1,600 1,600 1,600 0% 10-17 WORKERS COMPENSATION 243 11,630 8,013 9,400 9,400 11,700 24% 10-18 EDUCATIONAL ASSISTANCE 2,015 1,687 570 - - - 0% 10-19 PENSION 19,051 15,679 70,123 68,400 68,400 46,400 -32% 10-20 OPEB 26,282 27,945 24,877 33,500 33,500 34,100 2% PERSONNEL COSTS 588,609 529,244 440,197 512,600 507,300 511,500 0% 20-22 OFFICE SUPPLIES 58 - - - - - 0% 20-26 PROGRAM EXPENSES/SUPPLIES 26,480 31,104 23,701 28,500 15,600 35,000 23% 20-29 UNIFORMS/UNIFORM ALLOW 2,643 2,148 2,080 2,300 2,300 2,100 -9% 20-32 SECURITY/SAFETY MATERIALS 2,817 2,039 2,252 2,000 1,500 2,000 0% 20-33 SMALL TOOLS 2,812 2,433 2,810 2,500 2,500 2,500 0% 20-38 COMPUTER HARDWARE - - - - - 400 0% 20-41 STREET REPAIRING MATERIAL 19,139 7,171 9,385 10,000 11,200 10,000 0% 20-42 STREET CLEANING SUPPLIES 2,591 2,514 1,887 3,000 3,000 3,000 0% 20-43 STREET SIGNS/MARKING 13,622 22,037 15,367 16,000 16,000 16,000 0% 20-44 SAND AND SALT 599 6,593 23,484 9,300 20,600 10,000 8% 20-46 CITY BLDG MAINT SUPPLIES 7,169 10,137 279 200 200 200 0% 20-62 STORM SEWER SUPPLIES 4,402 - 2,910 10,000 10,000 10,000 0% 20-64 DITCH MAINTENANCE 122 26 11,862 1,500 300 - -100% MATERIALS & SUPPLIES 82,454 86,202 96,017 85,300 83,200 91,200 7% 30-21 TELEPHONE/FAX 676 461 451 - 500 800 0% 30-25 ADVERTISEMENT 29 792 495 700 700 700 0% 30-28 TRAINING/CONF/FOOD/TRAVEL - 8,790 2,327 1,300 1,300 100 -92% 30-29 CONSULTING FEES - 893 - 1,500 600 1,500 0% 30-31 CONTRACTUAL SERVICES 575 590 31,450 1,500 17,200 1,200 -20% 30-43 ENVIRONMENTAL EXPENSES - - - - 2,000 2,000 0% 30-44 AGENCY BILLING-TEMP HELP - 4,294 13,867 5,000 17,000 15,000 200% 30-62 GASOLINE 48,344 48,443 52,640 50,000 43,200 46,000 -8% 30-64 TRUCK REPAIRS/MAINTENANCE (344) - - - - - 0% 30-65 MAINT EQUIP REPAIRS/MAINT 13,341 8,023 1,740 5,000 1,000 5,000 0% 30-67 RADIO REPAIRS/MAINTENANCE 2,056 17,340 1,985 2,200 2,200 1,700 -23% 30-99 SNOW EMERGENCY 131,245 - - - - - 0% ADMINISTRATIVE EXPENDITURES 195,922 89,624 104,953 67,200 85,700 74,000 10% OPERATING EXPENDITURES 866,985 705,071 641,167 665,100 676,200 676,700 2% 40-23 TRUCKS - PURCHASE 176,721 16,704 138,789 178,900 178,900 38,500 -78% 40-25 OTHER EQUIPMENT PURCHASE - - 38,300 291,400 291,400 - -100% 40-31 CONSTRUCTION - PURCHASE 29,617 134,010 1,272,104 3,486,100 5,447,600 1,445,000 -59% CAPITAL OUTLAY 206,338 150,714 1,449,193 3,956,400 5,917,900 1,483,500 -63% TOTAL EXPENDITURES $ 1,073,323 $ 855,785 $ 2,090,359 $ 4,621,500 $ 6,594,100 $ 2,160,200 -53% OPERATING BUDGET STATS $ 866,985 $ 705,071 $ 641,167 $ 665,100 $ 676,200 $ 676,700 ACTUAL % OF OPER BUDGET 100% 100% 100% 100% 100% 100% BUDGET % OF CHANGE 4% -19% -9% 4% 2% 0% REVENUES GENERAL FUND $ 866,985 $ 705,071 $ 641,167 $ 665,100 $ 676,200 $ 676,700 GOV. CAPITAL PROJECT FUND 206,338 150,714 1,449,193 3,956,400 5,917,900 1,483,500 STATE GRANT 150,000 150,000 PERSONNEL BUDGETED FULL-TIME POSITIONS 11.0 10.0 8.0 8.0 8.0 8.0 290

PUBLIC WORKS ENGINEERING 110/147-2600-553 2011-2012 2012-2013 2013-2014 2014-2015 2014-2015 2015-2016 % ACCT DESCRIPTION ACTUAL ACTUAL ACTUAL BUDGET REVISED PROPOSED CHANGE 10-11 SALARIES $ - $ - $ - $ 128,900 $130,000 $114,400 -11% 10-12 OVERTIME - - - 800 800 - -100% 10-14 FICA TAXES - - - 9,800 9,800 8,700 -11% 10-15 HEALTH INSURANCE - - - 22,400 22,400 31,300 40% 10-16 L I D INSURANCE - - - 900 900 900 0% 10-17 WORKERS COMPENSATION - - - 400 400 400 0% 10-19 PENSION - - - 6,100 6,100 6,800 11% 10-20 OPEB - - - 15,300 15,300 13,600 -11% PERSONNEL COSTS - - - 184,600 185,700 176,100 -5% 20-29 UNIFORMS/UNIFORM ALLOW - - - 300 300 200 -33% 20-32 SECURITY/SAFETY MATERIALS - - - 200 200 200 0% 20-33 SMALL TOOLS - - - 100 100 100 0% 20-37 COMPUTER SOFTWARE - - - 400 900 200 -50% 20-38 COMPUTER HARDWARE - - - 3,000 3,000 1,300 -57% MATERIALS & SUPPLIES - - - 4,000 4,500 2,000 -50% 30-21 TELEPHONE/FAX - - - 800 800 500 -38% 30-28 TRAINING/CONF/FOOD/TRAVEL - - - 500 500 500 0% 30-31 CONTRACTUAL SERVICES 1,500 100% 30-62 GASOLINE - - - 2,700 2,200 1,500 -44% ADMINISTRATIVE EXPENDITURES - - - 4,000 3,500 4,000 0% OPERATING EXPENDITURES - - - 192,600 193,700 182,100 -5% TOTAL EXPENDITURES $ - $ - $ - $ 192,600 $ 193,700 $ 182,100 -5% OPERATING BUDGET STATS $ - $ - $ - $ 192,600 $ 193,700 $ 182,100 ACTUAL % OF OPER BUDGET 0% 0% 0% 0% 100% 100% BUDGET % CHANGE 0% 0% 0% 0% 0% 0% REVENUES GENERAL FUND $ - $ - $ - $ 192,600 $ 193,700 $ 182,100 PERSONNEL BUDGETED FULL-TIME POSITIONS - - - - 3.0 3.0 291

PUBLIC UTILITIES  PUBLIC WORKS WATER/ WASTEWATER  ELECTRIC

WATER/WASTEWATER FUND

WATER/WASTEWATER FUND BUDGET REVIEW Fiscal Year 2015-2016 May 2015 – Budget Review Hearing 294

Water/Wastewater Engineering Personnel Costs 454,900 4% Materials & Supplies 13,900 13% Administrative Expenditures 49,900 8% Overall Operating Expenses 518,700 4% Highlights: Materials & Supplies expenditures are decreased by $2,100 for office supplies, uniform/uniform allowances, books and computer software and hardware. Administrative expenditures are increased by $3,900 for telephone, subscriptions and dues $6,000 and gasoline offset by a $3,000 decrease in contractual services 295

Water Construction Highlights: Division has been eliminated and all expense allocated to other divisions. Personnel Costs last fiscal year were $228,600 including 5 positions at the beginning of the year. By the end of the fiscal year there were only 3 positions. All 3 of the afore mentioned positions have been moved to the water division . Materials and Supplies were budgeted at $4,200 in the prior year. Administrative Expenditures were budgeted at $19,700 in the prior year. 296

Water Management Personnel Costs 533,400 49% Materials & Supplies 69,000 7% Administrative Expenditures 72,800 17% Overall Operating Expenses 675,200 39% Capital Outlay 2,028,600 52% Total Expenditures 2,703,800 48% Highlights: Personnel Costs are increased by $174,500 due to an increase in personnel by 2 FTE’s from the Water Construction division which has been eliminated this fiscal year. All three construction positions moved here due to vacancies within the department. Materials & Supplies increased by $4,800 due to increases in med supplies, uniforms/uniform allowances, security and safety materials, computer hardware and water/sewer system supplies. Administrative Expenditures decreased for training/conf./food/travel offset by increases in contractual services, gasoline, maintenance equip repairs and radio repairs/maintenance. Capital Expenses increased by $691,700 and includes the following: Water Treatment Plant Process Improvements, SCADA Equipment Technology Upgrade, Meter Replacement Project, Wellhead Redevelopment Program, Future Well Installation, New Fence at Bayard Avenue Water Tower, Water Quality Improvements. 297

Wastewater Management Personnel Costs 646,100 5% Materials & Supplies 83,200 1% Administrative Expenditures 242,000 12% Overall Operating Expenses 971,300 0% Capital Outlay 1,822,100 44% Total Expenditures 2,793,400 34% Highlights: Materials & Supplies remained about the same except for small decreases in uniforms/uniform allowances, security/safety materials and chemicals and additives offset by a small increase in computer hardware and water/sewer. Administrative Expenses decreased for electricity, training/conf./food/travel, contractual services and radio repairs and maintenance. Capital Expenses have decreased by $1,451,100 and include the following projects: Retreat pump station replacement, Meter replacement program, Inflow and Infiltration, Miscellaneous pump station repairs, Rolling Acres pump station replacement and Delaware Ave. Sanitary sewer extension. 298

Water Treatment Personnel Costs 1,014,200 21% Materials & Supplies 177,100 15% Administrative Expenditures 718,300 23% Overall Operating Expenses 1,909,600 21% Capital Outlay 0 100% Total Expenditures 1,909,600 18% Highlights: Personnel costs are increased for two positions – wages and benefit costs increased accordingly. Materials & Supplies increased by $23,500 for chemicals and additives due to increased water demand from Garrison Energy Center, uniforms and computer hardware for the two new positions added to help with increased demand. Administrative Expenditures increased by $132,200 due to a large increase in electricity expense (due to increased demand from Garrison Energy Center) and heating oil/gas offset by reductions in contractual services and gasoline. Capital Outlay has no budget this year. Prior year’s budget of $38,100 was for a truck. 299

CITY MANAGER DEPARTMENT OF PUBLIC WORKS - WATER / WASTEWATER FUND FISCAL YEAR 2016 ORGANIZATION CHART PUBLIC WORKS DIRECTOR / CITY ENGINEER 1 (accounted for in Public Works Administration) WATER WASTEWATER WATER TREATMENT WATER / WASTEWATER MANAGEMENT MANAGEMENT & PRODUCTION ENG. & INSPECTIONS PUBLIC WORKS OPERATIONS MANAGER W / WW MANAGER 1 (accounted for in Public Works Administration) 1 WATER / WASTEWATER MAINTENANCE SUPERVISOR WATER PROD. SUPERVISOR CIVIL ENGINEER I 1 (accounted for in Water Management) 1 2 UTILITY CON. CREW LEADER UTILITY MAINT. MECHANIC II WATER TREAT. PLANT OP. II CONSTRUCTION MANAGER 1 3 4 1 CREW LEADER UTILITY MAINT. MECHANIC I UTILITY MAINT. MECHANIC II PUBLIC WORKS INSPECTOR 1 3 1 1 MOTOR EQUIP. OPERATOR III MOTOR EQUIP. OPERATOR II WATER TREAT. PLANT OP. I 5 1 2 7 HEAVY EQUIP. OPERATOR I MOTOR EQUIP. OPERATOR I 13 1 3 UTILITY CONSTR. WORKER 11 1 35 6 300

WATER/WASTEWATER ENGINEERING 412/417-2600-553 2011-2012 2012-2013 2013-2014 2014-2015 2014-2015 2015-2016 % ACCT DESCRIPTION ACTUAL ACTUAL ACTUAL BUDGET REVISED PROPOSED CHANGE 10-11 SALARIES $ 338,319 $ 319,364 $ 243,209 $ 287,600 $ 289,100 $ 302,500 5% 10-12 OVERTIME 966 949 927 800 800 800 0% 10-13 TEMPORARY HELP - - 10,244 - - - 0% 10-14 FICA TAXES 25,165 23,723 18,781 22,100 22,100 23,200 5% 10-15 HEALTH INSURANCE 55,249 48,610 39,707 55,500 55,500 53,600 -3% 10-16 L I D INSURANCE 1,936 1,818 1,341 1,800 1,800 1,900 6% 10-17 WORKERS COMPENSATION 43 2,694 896 800 800 1,200 50% 10-18 EDUCATIONAL ASSISTANCE 6,699 - - - - - 0% 10-19 PENSION 16,473 14,684 67,034 46,200 46,200 46,300 0% 10-20 OPEB 6,991 18,007 16,159 24,100 24,100 25,400 5% PERSONNEL COSTS 451,841 429,849 398,297 438,900 440,400 454,900 4% 20-22 OFFICE SUPPLIES - 861 2,522 3,000 3,000 2,700 -10% 20-29 UNIFORMS/UNIFORM ALLOW - 38 - 300 300 200 -33% 20-31 BOOKS 430 155 - 600 600 400 -33% 20-32 SECURITY/SAFETY MATERIALS 916 947 806 300 300 300 0% 20-33 SMALL TOOLS 541 - 40 100 100 100 0% 20-37 COMPUTER SOFTWARE 9,076 7,920 8,116 10,200 11,900 9,800 -4% 20-38 COMPUTER HARDWARE 2,374 - - 1,500 1,500 400 -73% MATERIALS & SUPPLIES 13,337 9,920 11,484 16,000 17,700 13,900 -13% 30-21 TELEPHONE/FAX 1,648 766 1,342 1,100 1,100 1,400 27% 30-27 SUBSCRIPTIONS AND DUES 942 1,332 1,116 600 600 6,600 1000% 30-28 TRAINING/CONF/FOOD/TRAVEL 1,590 50 2,398 1,400 1,400 900 -36% 30-31 CONTRACTUAL SERVICES 31,187 33,678 34,964 38,000 35,300 35,000 -8% 30-39 IN-HOUSE TRAINING 625 650 2,825 600 1,600 1,500 150% 30-62 GASOLINE 6,750 5,946 6,138 3,800 3,800 4,000 5% 30-67 RADIO REPAIRS/MAINTENANCE - 4,523 408 500 500 500 0% ADMINISTRATIVE EXPENDITURES 42,742 46,945 49,192 46,000 44,300 49,900 8% OPERATING EXPENDITURES 507,920 486,714 458,973 500,900 502,400 518,700 4% 40-23 TRUCKS - PURCHASE - 29,208 - - - - 0% 40-99 DEPRECIATION EXPENSE 6,315 - - - - - 0% CAPITAL OUTLAY 6,315 29,208 - - - - 0% TOTAL EXPENDITURES $ 514,235 $ 515,922 $ 458,973 $ 500,900 $ 502,400 $ 518,700 4% OPERATING BUDGET STATS $ 507,920 $ 486,714 $ 458,973 $ 500,900 $ 502,400 $ 518,700 ACTUAL % OF OPER BUDGET 100% 100% 100% 100% 100% 100% BUDGET % CHANGE 4% -4% -6% 9% 0% 3% REVENUES WATER/WASTEWATER FUND $ 507,920 $ 486,714 $ 458,973 $ 500,900 $ 502,400 $ 518,700 WATER/WASTEWATER I & E FUND 6,315 29,208 - - - - PERSONNEL BUDGETED FULL-TIME POSITIONS 6.0 6.0 6.0 7.0 5.0 5.0 301

WATER CONSTRUCTION 412/417-5600-556 2011-2012 2012-2013 2013-2014 2014-2015 2014-2015 2015-2016 % ACCT DESCRIPTION ACTUAL ACTUAL ACTUAL BUDGET REVISED PROPOSED CHANGE 10-11 SALARIES $ 203,185 $ 192,699 $ 149,227 $ 122,400 $ 123,200 $ - -100% 10-12 OVERTIME 8,561 12,467 12,178 7,100 7,100 - -100% 10-14 FICA TAXES 15,544 14,975 11,779 9,900 9,900 - -100% 10-15 HEALTH INSURANCE 55,796 49,692 33,470 24,000 24,000 - -100% 10-16 L I D INSURANCE 1,123 1,027 816 600 600 - -100% 10-17 WORKERS COMPENSATION 123 6,920 5,132 4,300 4,300 - -100% 10-19 PENSION 8,832 8,631 85,337 50,400 50,400 - -100% 10-20 OPEB 9,953 12,372 11,888 9,900 9,900 - -100% PERSONNEL COSTS 303,117 298,785 309,828 228,600 229,400 - -100% 20-29 UNIFORMS/UNIFORM ALLOW 1,253 1,186 916 900 900 - -100% 20-32 SECURITY/SAFETY MATERIALS 2,458 832 2,376 1,400 1,400 - -100% 20-33 SMALL TOOLS 4,556 4,023 4,571 - - - 0% 20-38 COMPUTER HARDWARE - - - 1,300 1,300 - -100% 20-46 CITY BLDG MAINT SUPPLIES 449 135 404 400 400 - -100% 20-58 WATER/SEWER 117 99 651 200 200 - -100% MATERIALS & SUPPLIES 8,833 6,276 8,918 4,200 4,200 - -100% 30-21 TELEPHONE/FAX 1,057 369 91 200 200 - -100% 30-23 ELECTRICITY 2,183 3,114 2,308 2,000 2,000 - -100% 30-24 HEATING OIL/GAS 2,920 2,311 4,545 3,000 5,800 - -100% 30-28 TRAINING/CONF/FOOD/TRAVEL - 20 240 500 500 - -100% 30-31 CONTRACTUAL SERVICES 3,558 2,970 3,679 3,000 3,000 - -100% 30-62 GASOLINE 22,051 11,718 7,455 9,500 6,700 - -100% 30-64 TRUCK REPAIRS/MAINTENANCE - - 80 - - - 0% 30-66 OTHER EQUIP REPAIRS/MAINT 3,246 410 175 600 600 - -100% 30-67 RADIO REPAIRS/MAINTENANCE 735 7,539 735 900 900 - -100% ADMINISTRATIVE EXPENDITURES 35,750 28,450 19,308 19,700 19,700 - -100% OPERATING EXPENDITURES 347,700 333,511 338,054 252,500 253,300 - -100% 40-23 TRUCKS - PURCHASE 29,985 35,900 89,500 90,000 - - -100% CAPITAL OUTLAY 29,985 35,900 89,500 90,000 - - -100% TOTAL EXPENDITURES $ 377,685 $ 369,411 $ 427,554 $ 342,500 $ 253,300 $ - -100% OPERATING BUDGET STATS $ 347,700 $ 333,511 $ 338,054 $ 252,500 $ 253,300 $ - ACTUAL % OF OPER BUDGET 100% 100% 100% 100% 100% 0% BUDGET % CHANGE -11% -4% 1% -25% 0% 0% REVENUES WATER/WASTEWATER FUND $ 347,700 $ 333,511 $ 338,054 $ 252,500 $ 253,300 $ - WATER/WASTEWATER I & E FUND 29,985 35,900 89,500 90,000 - - PERSONNEL BUDGETED FULL-TIME POSITIONS 6.0 5.0 5.0 5.0 3.0 - 302

WATER MANAGEMENT 412/417-6800-568 2011-2012 2012-2013 2013-2014 2014-2015 2014-2015 2015-2016 % ACCT DESCRIPTION ACTUAL ACTUAL ACTUAL BUDGET REVISED PROPOSED CHANGE 10-11 SALARIES $ 142,559 $ 146,288 $ 187,126 $ 193,200 $ 196,500 $ 279,800 45% 10-12 OVERTIME 8,160 7,354 11,755 9,100 9,100 13,400 47% 10-14 FICA TAXES 11,050 11,138 14,772 15,400 15,400 22,400 45% 10-15 HEALTH INSURANCE 88,084 76,590 54,365 54,600 54,600 83,200 52% 10-16 L I D INSURANCE 1,728 1,540 1,077 1,100 1,100 1,600 45% 10-17 WORKERS COMPENSATION 105 6,156 6,568 6,700 6,700 11,800 76% 10-19 PENSION 6,581 6,787 67,879 63,000 63,000 98,300 56% 10-20 OPEB 13,594 18,163 15,533 15,800 15,800 22,900 45% PERSONNEL COSTS 271,861 274,016 359,076 358,900 362,200 533,400 49% 20-28 MEDICAL SUP & PHYSICALS 341 100 100 500 600 600 20% 20-29 UNIFORMS/UNIFORM ALLOW 813 609 783 900 700 1,400 56% 20-31 BOOKS 95 - - - - - 0% 20-32 SECURITY/SAFETY MATERIALS 1,766 727 970 800 800 1,300 63% 20-33 SMALL TOOLS 8,808 7,215 6,125 7,000 6,100 5,500 -21% 20-38 COMPUTER HARDWARE - - - - - 200 0% 20-46 CITY BLDG MAINT SUPPLIES - 4 - - - 0% 20-51 WATER/SEWER SYSTEM SUP 46,456 49,200 50,297 45,000 62,500 50,000 11% 20-53 METERS/METER SUPPLIES 10,115 11,901 9,928 10,000 10,000 10,000 0% 20-54 PUMPING STATION SUPPLIES - - 130 - - 0% MATERIALS & SUPPLIES 68,394 69,755 68,332 64,200 80,700 69,000 7% 30-21 TELEPHONE/FAX 3,659 4,126 3,907 4,000 4,000 4,000 0% 30-25 ADVERTISEMENT 5,123 2,340 2,478 2,500 2,500 2,500 0% 30-27 SUBSCRIPTIONS AND DUES 2,710 2,837 2,800 2,900 2,900 2,900 0% 30-28 TRAINING/CONF/FOOD/TRAVEL 50 60 3,356 3,200 2,800 2,800 -13% 30-29 CONSULTING FEES 12,832 941 1,683 2,000 2,000 2,000 0% 30-31 CONTRACTUAL SERVICES 6,817 26,120 47,214 25,000 13,900 28,000 12% 30-62 GASOLINE 22,713 19,772 19,877 21,000 17,000 28,000 33% 30-64 TRUCK REPAIRS/MAINTENANCE - - 8 - - - 0% 30-65 MAINT EQUIP REPAIRS/MAINT 532 368 349 600 300 1,200 100% 30-67 RADIO REPAIRS/MAINTENANCE 900 15,366 817 1,000 300 1,400 40% ADMINISTRATIVE EXPENDITURES 55,336 71,929 82,489 62,200 45,700 72,800 17% OPERATING EXPENDITURES 395,591 415,700 509,897 485,300 488,600 675,200 39% 40-23 TRUCKS - PURCHASE 28,816 153,036 26,780 66,900 66,900 44,100 -34% 40-25 OTHER EQUIP - PURCHASE - 19,128 - - - - 0% 40-31 CONSTRUCTION - PURCHASE 2,238,456 915,012 1,341,979 1,270,000 7,459,600 1,984,500 56% 40-34 WATER LINES 94,907 67,675 - - - - 0% CAPITAL OUTLAY 2,362,179 1,154,852 1,368,759 1,336,900 7,526,500 2,028,600 52% TOTAL EXPENDITURES $ 2,757,770 $ 1,570,552 $ 1,878,655 $ 1,822,200 $ 8,015,100 $ 2,703,800 48% OPERATING BUDGET STATS $ 395,591 $ 415,700 $ 509,897 $ 485,300 $ 488,600 $ 675,200 ACTUAL % OF OPER BUDGET 100% 100% 100% 100% 100% 100% BUDGET % CHANGE 4% 5% 23% -5% 1% 38% REVENUES WATER/WASTEWATER FUND $ 395,591 $ 415,700 $ 509,897 $ 485,300 $ 488,600 $ 675,200 WATER/WASTEWATER I & E FUND 2,362,179 1,154,852 1,368,759 1,336,900 7,526,500 2,028,600 PERSONNEL BUDGETED FULL-TIME POSITIONS 4.0 5.0 5.0 4.0 4.0 6.0 303

WASTE WATER MANAGEMENT 412/417-6900-569 2011-2012 2012-2013 2013-2014 2014-2015 2014-2015 2015-2016 % ACCT DESCRIPTION ACTUAL ACTUAL ACTUAL BUDGET REVISED PROPOSED CHANGE 10-11 SALARIES $ 372,790 $ 304,371 $ 293,585 $ 366,900 $ 368,200 $ 374,300 2% 10-12 OVERTIME 23,300 26,562 24,351 27,000 27,000 27,000 0% 10-14 FICA TAXES 29,900 25,167 23,281 30,100 30,100 30,700 2% 10-15 HEALTH INSURANCE 56,379 26,303 61,170 86,900 86,900 124,000 43% 10-16 L I D INSURANCE 1,218 756 1,441 1,900 1,900 1,900 0% 10-17 WORKERS COMPENSATION 251 13,355 10,501 13,000 13,000 16,200 25% 10-19 PENSION 18,039 14,252 57,039 61,100 61,100 42,300 -31% 10-20 OPEB 12,111 10,078 22,987 29,100 29,100 29,700 2% PERSONNEL COSTS 513,988 420,845 494,353 616,000 617,300 646,100 5% 20-28 MEDICAL SUP & PHYSICALS 341 88 75 700 700 700 0% 20-29 UNIFORMS/UNIFORM ALLOW 2,611 1,938 1,827 3,100 3,100 3,000 -3% 20-32 SECURITY/SAFETY MATERIALS 3,171 2,591 2,725 3,600 3,600 3,000 -17% 20-33 SMALL TOOLS 4,971 2,723 5,083 5,000 5,000 5,000 0% 20-35 CHEMICALS & ADDITIVES 2,477 2,117 2,734 2,500 2,500 2,000 -20% 20-37 COMPUTER SOFTWARE 3,600 3,600 3,600 3,600 3,600 3,600 0% 20-38 COMPUTER HARDWARE - - - - - 200 0% 20-46 CITY BLDG MAINT SUPPLIES 341 300 308 500 500 500 0% 20-51 WATER/SEWER SYSTEM SUP 16,452 9,510 13,768 16,000 16,000 16,000 0% 20-53 METERS/METER SUPPLIES 10,586 11,952 9,676 10,000 10,000 10,000 0% 20-54 PUMPING STATION SUPPLIES 37,529 36,851 37,244 38,000 38,000 38,000 0% 20-58 WATER/SEWER 1,513 997 970 1,000 1,000 1,200 20% MATERIALS & SUPPLIES 83,592 72,667 78,011 84,000 84,000 83,200 -1% 30-21 TELEPHONE/FAX 3,659 4,126 3,970 4,000 4,000 4,000 0% 30-23 ELECTRICITY 189,684 171,042 155,493 170,000 170,000 155,000 -9% 30-24 HEATING OIL/GAS - - - - 3,500 - 0% 30-28 TRAINING/CONF/FOOD/TRAVEL 8 61 7,020 1,700 1,700 100 -94% 30-29 CONSULTING FEES 6,824 - 2,256 2,000 2,000 2,000 0% 30-31 CONTRACTUAL SERVICES 46,748 90,298 140,589 64,000 60,500 52,500 -18% 30-62 GASOLINE 25,304 30,840 28,010 30,000 30,000 27,000 -10% 30-64 TRUCK REPAIRS/MAINTENANCE 3,673 4 54 - - - 0% 30-65 MAINT EQUIP REPAIRS/MAINT 2,316 5,803 2,080 600 600 600 0% 30-67 RADIO REPAIRS/MAINTENANCE 2,272 6,865 1,551 1,800 1,800 800 -56% ADMINISTRATIVE EXPENDITURES 280,488 309,039 341,024 274,100 274,100 242,000 -12% OPERATING EXPENDITURES 878,068 802,551 913,389 974,100 975,400 971,300 0% 40-23 TRUCKS - PURCHASE 28,816 234,994 26,780 277,300 240,800 - -100% 40-24 MAINT EQUIP REPAIRS/MAINT - - - - - 59,600 100% 40-25 OTHER EQUIPMENT - 19,128 9,330 - - - 0% 40-31 CONSTRUCTION - PURCHASE 1,541,124 1,561,447 698,929 2,995,900 7,544,800 1,762,500 -41% 40-35 SEWER LINES 229,601 - - - - - 0% CAPITAL OUTLAY 1,799,541 1,815,569 735,039 3,273,200 7,785,600 1,822,100 -44% TOTAL EXPENDITURES $ 2,677,609 $ 2,618,120 $ 1,648,428 $ 4,247,300 $ 8,761,000 $ 2,793,400 -34% OPERATING BUDGET STATS $ 878,068 $ 802,551 $ 913,389 $ 974,100 $ 975,400 $ 971,300 ACTUAL % OF OPER BUDGET 100% 100% 100% 100% 100% 100% BUDGET % CHANGE -4% -9% 14% 7% 0% 0% REVENUES WATER/WASTEWATER FUND $ 878,068 $ 802,551 $ 913,389 $ 974,100 $ 975,400 $ 971,300 WATER/WASTEWATER I & E FUND 1,799,541 1,815,569 735,039 3,273,200 7,785,600 1,822,100 PERSONNEL BUDGETED FULL-TIME POSITIONS 10.0 10.0 10.0 11.0 11.0 11.0 304

WATER TREATMENT PLANT 412/417-7600-576 2011-2012 2012-2013 2013-2014 2014-2015 2014-2015 2015-2016 % ACCT DESCRIPTION ACTUAL ACTUAL ACTUAL BUDGET REVISED PROPOSED CHANGE 10-11 SALARIES $ 469,096 $ 411,080 $ 450,665 $ 459,300 $ 464,600 $ 576,500 26% 10-12 OVERTIME 21,038 34,107 24,591 34,800 34,800 32,300 -7% 10-14 FICA TAXES 35,866 32,751 34,229 37,900 37,900 46,500 23% 10-15 HEALTH INSURANCE 124,712 113,941 122,400 128,000 128,000 173,500 36% 10-16 L I D INSURANCE 2,413 2,272 2,395 2,500 2,500 3,100 24% 10-17 WORKERS COMPENSATION 348 18,052 15,697 16,300 16,300 24,600 51% 10-19 PENSION 21,102 20,019 127,835 120,100 120,100 112,600 -6% 10-20 OPEB 22,421 28,426 36,227 38,300 38,300 45,100 18% PERSONNEL COSTS 696,996 660,649 814,038 837,200 842,500 1,014,200 21% 20-23 PRINTING AND DUPLICATING 1,044 399 565 - - - 0% 20-25 CUSTODIAL 171 185 181 600 600 600 0% 20-29 UNIFORMS/UNIFORM ALLOW 2,596 3,316 2,704 4,100 4,100 5,100 24% 20-31 BOOKS - 155 98 - - - 0% 20-32 SECURITY/SAFETY MATERIALS 2,134 4,056 3,030 1,700 2,300 2,000 18% 20-33 SMALL TOOLS 3,891 1,156 3,826 4,500 4,500 4,500 0% 20-35 CHEMICALS & ADDITIVES 105,193 107,414 106,699 128,000 128,000 150,000 17% 20-37 COMPUTER SOFTWARE 179 - - 200 200 - -100% 20-38 COMPUTER HARDWARE 1,299 - - - - 400 0% 20-46 CITY BLDG MAINT SUPPLIES 2,821 1,467 3,295 2,500 2,500 2,500 0% 20-49 WELL SUPPLIES/REHAB 9,333 12,041 10,982 12,000 12,000 12,000 0% MATERIALS & SUPPLIES 128,661 130,189 131,381 153,600 154,200 177,100 15% 30-21 TELEPHONE/FAX 213 182 188 200 200 500 150% 30-23 ELECTRICITY 454,847 431,649 361,885 450,000 421,600 600,000 33% 30-24 HEATING OIL/GAS 2,841 1,565 5,544 4,000 8,200 6,000 50% 30-25 ADVERTISEMENT - - - 500 500 500 0% 30-27 SUBSCRIPTIONS AND DUES 400 400 500 500 500 700 40% 30-28 TRAINING/CONF/FOOD/TRAVEL 175 180 180 300 500 700 133% 30-31 CONTRACTUAL SERVICES 141,067 147,493 156,908 108,000 132,000 88,600 -18% 30-62 GASOLINE 13,300 12,031 10,992 12,000 12,000 11,000 -8% 30-66 OTHER EQUIP REPAIRS/MAINT 8,062 1,558 7,357 10,000 9,400 10,000 0% 30-67 RADIO REPAIRS/MAINTENANCE 1,116 4,443 491 600 600 300 -50% ADMINISTRATIVE EXPENDITURES 622,021 599,501 544,046 586,100 585,500 718,300 23% OPERATING EXPENDITURES 1,447,678 1,390,340 1,489,465 1,576,900 1,582,200 1,909,600 21% 40-23 TRUCKS - PURCHASE 22,898 29,208 - 38,100 38,100 - -100% CAPITAL OUTLAY 22,898 29,208 - 38,100 38,100 - -100% TOTAL EXPENDITURES $ 1,470,576 $ 1,419,548 $ 1,489,465 $ 1,615,000 $ 1,620,300 $ 1,909,600 18% OPERATING BUDGET STATS $ 1,447,678 $ 1,390,340 $ 1,489,465 $ 1,576,900 $ 1,582,200 $ 1,909,600 ACTUAL % OF OPER BUDGET 100% 100% 100% 100% 100% 100% BUDGET % CHANGE -1% -4% 7% 6% 0% 21% REVENUES WATER/WASTEWATER FUND $ 1,447,678 $ 1,390,340 $ 1,489,465 $ 1,576,900 $ 1,582,200 $ 1,909,600 WATER/WASTEWATER I & E FUND 22,898 29,208 - 38,100 38,100 - PERSONNEL BUDGETED FULL-TIME POSITIONS 10.0 10.0 10.0 10.0 11.0 13.0 305

ELECTRIC FUND

ELECTRIC FUND BUDGET REVIEW Fiscal Year 2015-2016 May 2015 – Budget Review Hearing 307

Electric Administration Personnel Costs 373,300 43% Materials & Supplies 147,100 0% Administrative Expenditures 321,300 40% Overall Operating Expenses 841,700 32% Highlights: Personnel Costs increased due to a new position added to the budget for an Assistant Generation Superintendent added for ½ year. Materials and Supplies remained constant. Administrative expenses increased by $92,100 due to a transfer of legal fees from another department of $100,000 offset by decreases in contractual services and community relations expense. 308

Electric T&D Personnel Costs 3,080,300 3% Materials & Supplies 443,000 0% Administrative Expenditures 552,400 5% Overall Operating Expenses 4,075,700 1% Capital Outlay 2,887,600 180% Total Expenditures 6,963,300 38% Highlights: Materials & Supplies remained constant. Administrative Expenses decreased contractual services expense does not have distribution pole testing budgeted this year. Capital Outlay is for New Developments and Public Works wetlands project, mini hydraulic excavator, trencher and a Freightliner. New Development increase of $1.9 million is offset by revenues from Developers/Contractors. 309

Electric Engineering Personnel Costs 1,059,800 2% Materials & Supplies 64,300 9% Administrative Expenditures 213,000 5% Overall Operating Expenses 1,337,100 2% Capital Outlay 1,724,300 4% Total Budget 3,061,400 1% Highlights: Personnel Costs decreased $17,300 overall due to the retirement of an employee that was in the employee pension plan. Materials & Supplies decreased by $6,300 mainly due to a reduction in all expenses except for electric materials/supplies and computer software. Administrative Expenses decreased by $10,200 in telephone, training, contractual services and gasoline. Capital Outlay includes a new roof for Weyandt Hall, synchronized substation clocks, and various other projects totaling $1,462,500. 310

Meter Reading Personnel Costs 326,100 37% Materials & Supplies 16,800 35% Administrative Expenditures 18,300 7% Overall Operating Expenses 361,200 35% Highlights: Personnel costs increased by $88,000 for 1 new field service representative position. Materials and Supplies increased by $4,400 for expense related to new position. (Note – Percentage appears high because this is not a large budget.) Administrative Expenses remained about the same with a small decrease in other equipment repairs and maintenance. 311

Systems Operations Personnel Costs 681,600 0% Materials & Supplies 0 100% Overall Operating Expenses 681,600 1% Highlights: Personnel Costs remain constant due to retirement. Material & Supplies no budgeted expense this fiscal year. Prior year expense was $2,600. 312

Power Plant Operations Personnel Costs 4,259,900 9% Materials & Supplies 242,500 6% Administrative Expenditures 1,932,200 4% Overall Operating Expenditures 6,434,600 5% Capital Outlay 1,655,000 26% Total Expenditures 8,089,600 3% Highlights: Personnel Costs reflect an increase for salaries and related fringes and benefits. Materials & Supplies increased by $13,300 due to increases in security and safety materials, water treatment chemicals, computer software, city building maintenance expense offset by decreases in office supplies, printing, small tools and computer hardware. Administrative Expenses decreased by $72,800 with a large variations in many line items. Capital Outlay is decreased and includes 9 projects totaling $1,655,000 for McKee Run and Vansant plants. 313

Power Supply 65 Series Supply Mgmt and Incentive Fees 996,000 20% 95 Series Purchases, capacity, and PJM Charges 40,511,600 2% 98 Fuel 1,167,300 28% Total Expenditures 42,674,900 3% Highlights: The budget includes power supply & risk management services, estimated power supply and fuel costs for Fiscal 2016. Contractual services for legal & power supply contracts have been moved to Electric Administration. 314

Final Discussion and Wrap-Up 315

FY 2016 ANNUAL OPERATING BUDGET— DOVER, DELAWARE Electric Division Fiscal Year 2016 Organizational Chart City Manager Electric Electric Director 1 Electric Transmission Administration System Operations Electric Engineering & Distribution Generation System Ops Crew Leader Eng Svcs & System Ops Super. Line Crew Superintendent Generation Manager Administrative Assistant (Vacant) 1 1 1 1 0 Electrical Engineer II Electric Meter Tech Crew Leader Account Clerk II System Operators II (Vacant) 1 1 4 0 Electrical Engineer Electric Meter Tech II 1 1 SCADA Tech Journeyman-1st Class Lineman 1 8 Substation Tech. Crew Leader Lineman Second Class 1 (3 Vacant) 2 Substation Technician II 2 Lineman Third Class 3 Substation Technician I 0 Lineman Crew Leader Electric Draftsman III 3 1 Groundworker Engineering Crew Leader (1 Vacant) 1 2 Engineering Fieldworker T & D/Engineering Coordinator 1 1 Updated: 4/23/2015 316

POWER PLANT OPERATIONS 480/487-8101-591 2011-2012 2012-2013 2013-2014 2014-2015 2014-2015 2015-2016 % ACCT DESCRIPTION ACTUAL ACTUAL ACTUAL BUDGET REVISED PROPOSED CHANGE 10-11 SALARIES & WAGES $ 2,177,370 $ 2,239,601 $ 2,221,763 $ 2,487,500 $ 2,487,500 $ 2,558,900 3% 10-12 OVERTIME 169,456 195,419 226,536 198,700 248,700 209,200 5% 10-13 TEMPORARY HELP - 20,992 14,067 - - - 0% 10-18 EDUCATIONAL ASSISTANCE - 2,874 432 5,000 5,000 2,500 -50% 10-22 INCENTIVE ACUMULATOR 276,309 284,203 264,297 327,600 137,600 337,500 3% 10-23 INCENTIVE BURDEN (21.0%) 51,980 52,288 45,705 68,800 28,800 70,900 3% 10-24 BURDEN @ 40% 637,692 689,526 698,720 819,300 769,300 1,080,900 32% PERSONNEL COSTS 3,312,807 3,484,903 3,471,521 3,906,900 3,676,900 4,259,900 9% 20-22 OFFICE SUPPLIES/SUBSCRIPT 7,701 11,083 6,876 7,300 7,300 7,000 -4% 20-23 PRINTING & DUPLICATING 1,878 3,258 1,431 3,000 3,000 2,500 -17% 20-25 JANITORIAL SERV/SUPPLIES 37,315 36,280 34,692 35,000 35,000 35,000 0% 20-28 MEDICAL SUPPLIES - - 1,789 2,400 2,400 2,400 0% 20-29 UNIFORMS/UNIFORM ALLOW 5,667 5,856 12,544 13,000 13,000 13,000 0% 20-32 SECURITY/SAFETY MATERIALS 15,698 10,162 12,006 7,300 7,300 8,200 12% 20-33 SMALL TOOLS 3,060 1,385 2,116 2,300 2,300 1,900 -17% 20-35 WATER TREATMENT CHEMICALS 8,019 33,093 26,817 23,000 38,000 37,900 65% 20-37 COMPUTER SOFTWARE 11,505 13,010 5,945 6,400 6,400 8,800 38% 20-38 COMPUTER HARDWARE 1,919 7,260 6,536 12,000 12,000 4,300 -64% 20-46 CITY BUILDING MAINTENANCE 42,730 18,382 23,923 33,500 33,500 37,500 12% 20-58 WATER/SEWER 59,180 62,523 82,777 84,000 84,000 84,000 0% MATERIALS & SUPPLIES 194,672 202,291 217,451 229,200 244,200 242,500 6% 30-19 OPERATOR INSURANCE 398,623 400,253 413,302 415,000 415,000 415,000 0% 30-21 TELEPHONE 13,084 15,429 9,354 10,700 10,700 10,200 -5% 30-22 POSTAGE 7,286 13,483 9,878 9,000 9,000 9,000 0% 30-23 ELECTRICITY 594,380 584,726 604,747 550,000 630,000 550,000 0% 30-24 HEATING OIL/GAS 16,200 11,825 29,451 26,000 26,000 26,000 0% 30-28 TRAINING/CONF/FOOD/TRAVEL 41,986 49,591 36,719 53,200 53,200 68,000 28% 30-31 CONTRACTUAL SERVICES 119,917 156,971 97,223 78,600 108,600 74,300 -5% 30-43 ENVIRONMENT EXPENSES 76,210 58,856 146,170 97,600 97,600 109,700 12% 30-45 OPERATOR MANAGEMENT FEE 199,488 203,484 207,552 212,000 212,000 216,900 2% 30-46 OPERATOR INCENTIVE 159,597 162,788 160,984 157,000 67,000 170,000 8% 30-47 HOME OFFICE LABOR 73,043 91,795 60,372 63,300 83,300 63,900 1% 30-51 RIGHT OF WAY/PERMITS 46,080 44,410 44,365 47,600 39,600 36,900 -22% 30-62 GASOLINE 3,304 4,930 3,599 3,600 3,600 3,400 -6% 30-66 OTHER EQUIPT/MAINTENANCE 65,437 58,319 56,151 39,500 39,500 34,600 -12% 30-67 RADIO REPAIRS/MAINTENANCE 17,009 700 2,461 5,800 5,800 6,500 12% 30-80 AUXILLARY SYSTEMS 22,225 39,528 62,328 43,400 43,400 43,600 0% 30-81 BOILER SYSTEMS 36,683 60,587 34,217 54,000 244,000 21,000 -61% 30-82 CONTINUOUS EMISSIONS MONI 9,305 13,082 15,529 21,500 14,500 4,000 -81% 30-83 DCS CONTROL SYSTEM 7,383 4,508 7,584 8,000 8,000 9,700 21% 30-84 FIRE PROTECTION SYSTEM 16,544 11,846 6,689 13,200 13,200 14,500 10% 30-85 COOLING TOWER 2,050 5,233 5,421 5,000 5,000 5,000 0% 30-86 FUEL OIL/GAS SYSTEMS 2,501 - - 3,000 3,000 3,000 0% 30-87 COMBUSTION TURBINE MAINT 22,212 19,879 14,728 12,000 12,000 13,000 8% 30-88 POWER DISTRIBUTION SYSTEM 35,404 8,447 5,215 64,000 64,000 12,000 -81% 30-89 TURBINE GENERATOR SYSTEMS 7,429 11,221 6,911 12,000 12,000 12,000 0% ADMINISTRATIVE EXPENDITURES 1,993,380 2,031,889 2,040,950 2,005,000 2,220,000 1,932,200 -4% OPERATING EXPENDITURES 5,500,859 5,719,083 5,729,922 6,141,100 6,141,100 6,434,600 5% 40-25 OTHER EQUIP-PURCHASE - - 80,370 - - - 0% 40-31 CONSTRUCTION-PURCHASE 1,897,455 929,027 1,466,647 2,240,000 2,739,300 1,655,000 -26% CAPITAL OUTLAY 1,897,455 929,027 1,547,017 2,240,000 2,739,300 1,655,000 -26% TOTAL EXPENDITURES $ 7,398,314 $ 6,648,110 $ 7,276,939 $ 8,381,100 $ 8,880,400 $ 8,089,600 -3% OPERATING BUDGET STATS $ 5,500,859 $ 5,719,083 $ 5,729,922 $ 6,141,100 $ 6,141,100 $ 6,434,600 ACTUAL % of OPER BUDGET 100% 100% 100% 100% 100% 100% BUDGET % CHANGE -10% 4% 0% 7% 0% 5% REVENUES ELECTRIC FUND - OPERATING $ 5,500,859 $ 5,719,083 $ 5,729,922 $ 6,141,100 $ 6,141,100 $ 6,434,600 ELECTRIC I & E FUND - CIP 1,897,455 929,027 1,547,017 2,240,000 2,739,300 1,655,000 317

POWER SUPPLY 480/487-8102-592 2011-2012 2012-2013 2013-2014 2014-2015 2014-2015 2015-2016 % ACCT DESCRIPTION ACTUAL ACTUAL ACTUAL BUDGET REVISED PROPOSED CHANGE 65-31 CONTRACTUAL SERVICES $ 5,207 $ 157,955 $ 28,074 $ 246,800 $ 246,800 $ - -100% 65-44 OPERATOR/SUPPLY MGMT FEE 996,000 996,000 996,000 996,000 996,000 996,000 0% 65 SERIES TOTAL 1,001,207 1,153,955 1,024,074 1,242,800 1,242,800 996,000 -20% 95-48 3RD PARTY HEDGE PURCHASES 41,441,134 37,698,282 29,484,681 21,823,000 26,035,900 23,402,600 7% 95-49 CAPACITY CHARGES 8,685,938 11,587,934 15,504,095 9,958,900 9,744,100 10,225,100 3% 95-50 CAPACITY CREDITS (7,373,701) (14,318,588) (15,065,472) (8,881,500) (8,742,100) (10,472,100) 18% 95-58 SOLAR POWER SUPPLY 1,824,518 1,595,826 1,821,037 2,067,600 2,002,700 2,313,900 12% 95-59 SOLAR RENEWAL ENERGY CREDIT - 370,255 337,741 378,600 375,500 363,400 -4% 95-60 REC'S (Renewable Energy Credits) - - - - 555,400 673,400 0% 95-61 RGGI (Regional Greenhouse Gas Init.) - - - - - 175,000 0% 95-90 PJM CHARGES - TRANS. & FEES - 7,103,571 7,433,120 7,234,100 4,480,800 7,932,500 10% 95-91 PJM CHARGES - ENERGY 10,182,061 6,024,702 14,855,117 11,499,800 10,076,200 7,966,100 -31% 95-92 PJM CREDITS (4,081,759) (2,433,494) (5,946,189) (486,700) (663,700) (360,000) -26% 95-93 PJM SPOT MARKET ENERGY - - (862,233) (2,232,800) (2,834,600) (1,708,300) -23% 95 SERIES TOTAL 50,678,191 47,628,490 47,561,896 41,361,000 41,030,200 40,511,600 -2% 98-91 GAS FUEL 1,582,984 1,023,574 1,534,434 1,611,100 1,873,400 1,167,300 -28% 98-93 NO. 2 FUEL OIL - - 1,180,850 - - 0% 98 SERIES TOTAL 1,582,984 1,023,574 2,715,284 1,611,100 1,873,400 1,167,300 -28% OPERATING EXPENDITURES 53,262,382 49,806,020 51,301,254 44,214,900 44,146,400 42,674,900 -3% TOTAL EXPENDITURES $ 53,262,382 $ 49,806,020 $ 51,301,254 $ 44,214,900 $ 44,146,400 $ 42,674,900 -3% OPERATING BUDGET STATS $ 53,262,382 $ 49,806,020 $ 51,301,254 $ 44,214,900 $ 44,146,400 $ 42,674,900 ACTUAL % OF OPER BUDGET 100% 100% 100% 100% 100% 100% BUDGET % CHANGE -15% -6% 3% -14% 0% -3% REVENUES ELECTRIC FUND $ 53,262,382 $ 49,806,020 $ 51,301,254 $ 44,214,900 $ 44,146,400 $ 42,674,900 318

ELECTRIC TRANSMISSION & DISTRIBUTION 480/487-8200-562 2011-2012 2012-2013 2013-2014 2014-2015 2014-2015 2015-2016 % ACCT DESCRIPTION ACTUAL ACTUAL ACTUAL BUDGET REVISED PROPOSED CHANGE 10-11 SALARIES $ 1,456,482 $ 1,433,173 $ 1,354,491 $ 1,508,300 $ 1,481,100 $ 1,540,100 2% 10-12 OVERTIME 126,886 172,288 110,376 115,000 112,200 115,000 0% 10-14 FICA TAXES 117,942 120,210 109,291 124,100 120,600 126,600 2% 10-15 HEALTH INSURANCE 274,335 255,422 242,437 245,400 229,100 275,700 12% 10-16 L I D INSURANCE 6,485 6,106 5,610 6,500 6,300 6,400 -2% 10-17 WORKERS COMPENSATION 1,321 65,087 48,348 53,500 52,000 66,900 25% 10-19 PENSION 65,932 64,874 923,539 842,400 824,600 837,700 -1% 10-20 OPEB 70,616 86,687 94,699 109,600 106,100 111,900 2% PERSONNEL COSTS 2,119,999 2,203,848 2,888,791 3,004,800 2,932,000 3,080,300 3% 20-26 PROGRAM EXPENSES/SUPPLIES - 383 - - - - 0% 20-29 UNIFORMS/UNIFORM ALLOW 26,541 24,177 24,680 25,000 41,500 23,000 -8% 20-32 SECURITY/SAFETY MATERIALS 22,456 18,456 18,280 18,000 33,800 18,000 0% 20-33 SMALL TOOLS 25,930 24,415 26,712 25,000 25,000 25,000 0% 20-37 COMPUTER SOFTWARE 179 - - - - - 0% 20-38 COMPUTER HARDWARE 562 2,500 1,655 11,800 11,800 12,700 8% 20-53 METERS/METER SUPPLIES 13,719 15,211 13,611 14,000 14,000 14,000 0% 20-58 WATER/SEWER 494 693 1,479 300 300 300 0% 20-61 ELEC MATERIALS/SUPPLIES 307,667 375,087 267,025 350,000 315,700 350,000 0% MATERIALS & SUPPLIES 397,548 460,922 353,443 444,100 442,100 443,000 0% 30-21 TELEPHONE/FAX 1,686 1,236 1,025 1,400 1,400 1,400 0% 30-23 ELECTRICITY 576 533 454 600 600 600 0% 30-24 HEATING OIL/GAS 3,629 5,963 7,519 6,000 6,000 6,000 0% 30-28 TRAINING/CONF/FOOD/TRAVEL 4,259 7,985 3,521 5,000 5,000 12,700 154% 30-31 CONTRACTUAL SERVICES 311,552 413,599 422,675 441,000 441,000 410,900 -7% 30-39 IN-HOUSE TRAINING 1,898 1,933 - - - - 0% 30-43 ENVIRONMENTAL EXPENSES 28,111 30,065 22,728 33,000 33,000 30,000 -9% 30-51 RIGHT OF WAY 5,955 5,955 5,955 6,000 6,000 6,000 0% 30-62 GASOLINE 63,348 61,986 58,891 63,000 63,000 60,000 -5% 30-64 TRUCK REPAIRS/MAINTENANCE 8,450 15,640 15,927 15,000 15,000 15,000 0% 30-66 OTHER EQUIP REPAIRS/MAINT 9,460 7,572 6,661 7,500 7,500 7,500 0% 30-67 RADIO REPAIRS/MAINTENANCE 3,957 13,236 2,363 1,300 2,300 2,300 77% ADMINISTRATIVE EXPENDITURES 442,881 565,703 547,720 579,800 580,800 552,400 -5% OPERATING EXPENDITURES 2,960,428 3,230,473 3,789,954 4,028,700 3,954,900 4,075,700 1% 40-23 TRUCKS - PURCHASE 48,238 145,718 7,421 33,000 275,000 387,600 1075% 40-25 OTHER EQUIP - PURCHASE - - 152,584 - 150,000 - 0% 60-31 UG TRANSFORMERS 90,218 163,528 52,766 144,200 212,300 2,000,000 1287% 60-34 UG CONDUCTORS/DEVICES 296,420 805,707 239,859 789,700 1,151,500 500,000 -37% 60-46 METERS 26,588 68,651 14,514 66,100 65,400 - -100% CAPITAL OUTLAY 461,464 1,183,603 467,144 1,033,000 1,854,200 2,887,600 180% TOTAL EXPENDITURES $ 3,421,892 $ 4,414,076 $ 4,257,098 $ 5,061,700 $ 5,809,100 $ 6,963,300 38% OPERATING BUDGET STATS $ 2,960,428 $ 3,230,473 $ 3,789,954 $ 4,028,700 $ 3,954,900 $ 4,075,700 ACTUAL % OF OPER BUDGET 100% 100% 100% 100% 100% 100% BUDGET % CHANGE -1% 9% 17% 6% -2% 3% REVENUES ELECTRIC FUND $ 2,960,428 $ 3,230,473 $ 3,789,954 $ 4,028,700 $ 3,954,900 $ 4,075,700 ELECTRIC I & E FUND 461,464 1,183,603 467,144 1,033,000 1,854,200 2,887,600 PERSONNEL BUDGETED FULL-TIME POSITIONS 25.0 24.0 24.0 24.0 24.0 24.0 319

ELECTRIC ENGINEERING 480/487-8300-563 2011-2012 2012-2013 2013-2014 2014-2015 2014-2015 2015-2016 % ACCT DESCRIPTION ACTUAL ACTUAL ACTUAL BUDGET REVISED PROPOSED CHANGE 10-11 SALARIES $ 563,704 $ 553,596 $ 571,424 $ 619,200 $ 620,500 $ 637,700 3% 10-12 OVERTIME 7,998 18,570 10,912 11,000 11,000 11,000 0% 10-14 FICA TAXES 42,962 42,299 42,926 48,100 48,100 49,600 3% 10-15 HEALTH INSURANCE 82,693 100,730 100,431 105,900 105,900 137,800 30% 10-16 L I D INSURANCE 2,719 2,708 2,508 3,100 3,100 3,100 0% 10-17 WORKERS COMPENSATION 343 16,217 12,960 15,100 15,100 18,900 25% 10-18 EDUCATIONAL ASSISTANCE - - 2,108 - 2,100 - 0% 10-19 PENSION 25,926 28,691 264,224 229,600 229,600 155,200 -32% 10-20 OPEB 25,662 33,649 39,539 45,100 45,100 46,500 3% PERSONNEL COSTS 752,007 796,459 1,047,032 1,077,100 1,080,500 1,059,800 -2% 20-29 UNIFORMS/UNIFORM ALLOW 7,569 6,602 7,015 8,000 11,500 7,000 -13% 20-31 BOOKS 412 - 36 200 200 200 0% 20-32 SECURITY/SAFETY MATERIALS 3,345 4,029 4,452 5,600 5,600 4,600 -18% 20-33 SMALL TOOLS 2,464 3,493 1,269 2,000 2,000 2,000 0% 20-37 COMPUTER SOFTWARE 2,447 230 - - 10,200 3,000 0% 20-38 COMPUTER HARDWARE 2,020 2,297 - 4,800 4,800 3,500 -27% 20-61 ELEC MATERIALS/SUPPLIES 24,378 47,335 24,576 50,000 41,300 44,000 -12% MATERIALS & SUPPLIES 42,635 63,986 37,348 70,600 75,600 64,300 -9% 30-21 TELEPHONE/FAX 20,398 19,988 19,112 22,000 22,000 20,000 -9% 30-23 ELECTRICITY 1,698 1,849 1,434 2,000 2,000 2,000 0% 30-27 SUBSCRIPTIONS AND DUES 311 185 - 400 400 400 0% 30-28 TRAINING/CONF/FOOD/TRAVEL 2,158 7,382 7,506 8,000 8,000 6,800 -15% 30-31 CONTRACTUAL SERVICES 90,392 109,766 108,718 104,000 104,000 100,000 -4% 30-39 IN-HOUSE TRAINING 2,610 2,055 - - - - 0% 30-43 ENVIRONMENTAL EXPENSES 56,150 59,800 62,564 60,000 60,000 60,000 0% 30-61 OFF EQUIP/REPAIRS & MAINT - 54 - - - - 0% 30-62 GASOLINE 15,802 14,331 15,070 18,000 18,000 15,000 -17% 30-64 TRUCK REPAIRS/MAINTENANCE - 1 - - - - 0% 30-66 OTHER EQUIP REPAIRS/MAINT - 14,165 12,119 7,500 7,500 7,500 0% 30-67 RADIO REPAIRS/MAINTENANCE 1,882 8,293 1,161 1,300 1,300 1,300 0% ADMINISTRATIVE EXPENDITURES 191,401 237,870 227,683 223,200 223,200 213,000 -5% OPERATING EXPENDITURES 986,043 1,098,315 1,312,062 1,370,900 1,379,300 1,337,100 -2% 40-22 AUTOMOBILES - PURCHASE - - 34,985 28,600 28,600 - -100% 40-25 OTHER EQUIP - PURCHASE 102,991 - 8,200 - - 30,000 0% 40-31 CONSTRUCTION - PURCHASE - - - - - 201,800 0% 50-55 MCKEE RUN SUBSTATION REPAIR - - 35,820 - - - 0% 50-76 LIGHTING IMPROVEMENTS 50,000 99,916 46,920 - - 67,000 0% 50-83 UG CABLE REPLACEMENT - - - 85,000 85,000 50,000 -41% 50-85 WIRE REPLACEMENT 69KV - - - 75,000 75,000 255,500 241% 50-86 BATTERY BANK REPLACEMENT - - 23,185 24,500 24,500 - -100% 60-82 CAPICITOR INSTALLATIONS 100,000 125,053 31,484 50,000 50,000 50,000 0% 60-89 DAFB SUBSTATION UPGRADE 30,000 100% 70-27 SUBSTATIONS 487,215 487,736 588,719 1,100,000 468,700 - -100% 70-35 TRANSMISSION/SWITCHES 98,000 73,938 17,374 - 1,137,600 75,000 0% 80-38 UPGRADE SCADA 75,000 - - - - - 0% 90-25 DISTRIBUTION UPGRADES 877,510 508,030 426,584 300,000 330,800 965,000 222% 90-78 WHITEOAK 69KV REBUILD - - - - 550,000 - 0% CAPITAL OUTLAY 1,790,716 1,294,674 1,213,271 1,663,100 2,750,200 1,724,300 4% TOTAL EXPENDITURES $ 2,776,759 $ 2,392,989 $ 2,525,333 $ 3,034,000 $ 4,129,500 $ 3,061,400 1% OPERATING BUDGET STATS $ 986,043 $ 1,098,315 $ 1,312,062 $ 1,370,900 $ 1,379,300 $ 1,337,100 ACTUAL % OF OPER BUDGET 100% 100% 100% 100% 100% 100% BUDGET % CHANGE -41% 11% 19% 4% 1% -3% REVENUES ELECTRIC FUND $ 986,043 $ 1,098,315 $ 1,312,062 $ 1,370,900 $ 1,379,300 $ 1,337,100 ELECTRIC I & E FUND 1,790,716 1,294,674 1,213,271 1,663,100 2,750,200 1,724,300 PERSONNEL BUDGETED FULL-TIME POSITIONS 10.0 10.0 10.0 10.0 10.0 10.0 320

ELECTRIC ADMINISTRATION 480/487-8400-564 2011-2012 2012-2013 2013-2014 2014-2015 2014-2015 2015-2016 % ACCT DESCRIPTION ACTUAL ACTUAL ACTUAL BUDGET REVISED PROPOSED CHANGE 10-11 SALARIES $ 190,742 $ 77,140 $ 83,844 $ 172,200 $ 173,000 $ 252,000 46% 10-12 OVERTIME 237 2,021 - 2,000 2,000 2,000 0% 10-14 FICA TAXES 14,013 5,983 6,134 13,400 13,400 19,400 45% 10-15 HEALTH INSURANCE 24,740 14,039 13,553 24,000 24,000 39,300 64% 10-16 L I D INSURANCE 1,129 533 533 1,100 1,100 1,400 27% 10-17 WORKERS COMPENSATION 8 415 173 400 400 800 100% 10-19 PENSION 6,763 2,914 33,894 34,600 34,600 39,800 15% 10-20 OPEB 8,386 5,149 6,368 12,700 12,700 18,600 46% PERSONNEL COSTS 246,018 108,195 144,499 260,400 261,200 373,300 43% 20-22 OFFICE SUPPLIES 2,074 1,071 997 1,200 1,200 1,000 -17% 20-23 PRINTING AND DUPLICATING 10,838 8,744 7,073 10,000 10,000 9,000 -10% 20-28 MEDICAL SUP & PHYSICALS 364 95 35 100 100 100 0% 20-37 COMPUTER SOFTWARE 83 - - 200 200 200 0% 20-38 COMPUTER HARDWARE - - - 1,300 1,300 2,600 100% 20-46 CITY BLDG MAINT SUPPLIES 158,847 128,119 131,699 133,300 133,300 133,300 0% 20-58 WATER/SEWER 880 853 699 900 900 900 0% MATERIALS & SUPPLIES 173,086 138,881 140,503 147,000 147,000 147,100 0% 30-21 TELEPHONE/FAX 2,164 1,263 1,000 1,000 1,000 1,000 0% 30-23 ELECTRICITY 20,474 18,563 16,382 17,000 17,000 17,000 0% 30-27 SUBSCRIPTIONS AND DUES 64,697 66,158 67,127 68,000 68,000 67,300 -1% 30-28 TRAINING/CONF/FOOD/TRAVEL (153) 947 - 2,500 2,500 2,500 0% 30-29 CONSULTING FEES 104,412 35,480 15,270 - - - 0% 30-31 CONTRACTUAL SERVICES 42,544 20,352 19,250 60,000 60,000 55,300 -8% 30-32 LEGAL EXPENSES - - 143,365 75,000 75,000 175,000 133% 30-35 COMMUNITY RELATIONS EXP 225 3,107 - 5,000 - 2,500 -50% 30-62 GASOLINE 608 721 660 700 700 700 0% ADMINISTRATIVE EXPENDITURES 234,971 146,590 263,053 229,200 224,200 321,300 40% OPERATING EXPENDITURES 654,075 393,666 548,055 636,600 632,400 841,700 32% TOTAL EXPENDITURES $ 654,075 $ 393,666 $ 548,055 $ 636,600 $ 632,400 $ 841,700 32% OPERATING BUDGET STATS $ 654,075 $ 393,666 $ 548,055 $ 636,600 $ 632,400 $ 841,700 ACTUAL % OF OPER BUDGET 100% 100% 100% 100% 100% 100% BUDGET % CHANGE -31% -40% 39% 14% -1% 25% REVENUES ELECTRIC FUND $ 654,075 $ 393,666 $ 548,055 $ 636,600 $ 632,400 $ 841,700 PERSONNEL BUDGETED FULL-TIME POSITIONS 4.0 3.0 3.0 3.0 3.0 4.0 321

METER READING 480/487-8500-565 2011-2012 2012-2013 2013-2014 2014-2015 2014-2015 2015-2016 % ACCT DESCRIPTION ACTUAL ACTUAL ACTUAL BUDGET REVISED PROPOSED CHANGE 10-11 SALARIES $ 124,887 $ 125,654 $ 129,075 $ 124,200 $ 167,200 $ 181,200 46% 10-12 OVERTIME 9,129 11,168 9,377 5,000 7,800 11,100 122% 10-14 FICA TAXES 10,040 10,183 10,177 9,800 13,300 14,700 50% 10-15 HEALTH INSURANCE 28,390 27,342 27,477 27,600 43,900 33,200 20% 10-16 L I D INSURANCE 758 758 758 800 1,000 900 13% 10-17 WORKERS COMPENSATION 110 5,548 4,564 2,900 4,400 5,800 100% 10-19 PENSION 6,177 6,333 68,813 58,700 76,500 66,100 13% 10-20 OPEB 1,464 7,736 8,990 9,100 12,600 13,100 44% PERSONNEL COSTS 180,955 194,722 259,231 238,100 326,700 326,100 37% 20-21 FURNITURE/FIXTURES - - - - - 300 100% 20-29 UNIFORMS/UNIFORM ALLOW 2,942 2,597 2,694 2,700 4,700 4,400 63% 20-32 SECURITY/SAFETY MATERIALS 109 340 400 400 400 500 25% 20-33 SMALL TOOLS - - - 5,300 5,500 6,100 15% 20-38 COMPUTER HARDWARE - 1,401 - - - - 0% 20-55 METER READING SUPPLIES 3,393 2,713 3,972 4,000 4,000 5,500 38% MATERIALS & SUPPLIES 6,444 7,050 7,066 12,400 14,600 16,800 35% 30-21 TELEPHONE/FAX 1,618 1,605 1,610 1,600 2,200 2,100 31% 30-28 TRAINING/CONF/FOOD/TRAVEL - - - - - 500 100% 30-62 GASOLINE 11,685 10,527 10,532 10,000 8,200 10,000 0% 30-66 OTHER EQUIP REPAIRS/MAINT 4,951 5,106 5,463 5,100 5,100 5,300 4% 30-67 RADIO REPAIRS/MAINTENANCE 137 - 326 400 400 400 0% ADMINISTRATIVE EXPENDITURES 18,391 17,238 17,931 17,100 15,900 18,300 7% OPERATING EXPENDITURES 205,790 219,010 284,229 267,600 357,200 361,200 35% 40-25 OTHER EQUIP - PURCHASE 10,280 - - - - - 0% CAPITAL OUTLAY 10,280 - - - - - 0% TOTAL EXPENDITURES $ 216,070 $ 219,010 $ 284,229 $ 267,600 $ 357,200 $ 361,200 35% OPERATING BUDGET STATS $ 205,790 $ 219,010 $ 284,229 $ 267,600 $ 357,200 $ 361,200 ACTUAL % OF OPER BUDGET 100% 100% 100% 100% 100% 100% BUDGET % CHANGE 1% 6% 30% -6% 33% 1% REVENUES ELECTRIC FUND $ 205,790 $ 219,010 $ 284,229 $ 267,600 $ 357,200 $ 361,200 ELECTRIC I & E FUND 10,280 - - - - - PERSONNEL BUDGETED FULL-TIME POSITIONS 3.0 3.0 3.0 3.0 3.0 4.0 322

SYSTEM OPERATIONS 480/487-8600-526 2011-2012 2012-2013 2013-2014 2014-2015 2014-2015 2015-2016 % ACCT DESCRIPTION ACTUAL ACTUAL ACTUAL BUDGET REVISED PROPOSED CHANGE 10-11 SALARIES $ 332,035 $ 336,359 $ 366,841 $ 347,100 $ 357,300 $ 335,800 -3% 10-12 OVERTIME 43,311 61,029 68,038 50,000 50,000 50,000 0% 10-14 FICA TAXES 27,665 29,061 31,760 30,300 30,300 29,500 -3% 10-15 HEALTH INSURANCE 61,111 65,495 71,204 69,700 69,700 83,700 20% 10-16 L I D INSURANCE 1,343 1,356 1,356 1,400 1,400 1,300 -7% 10-17 WORKERS COMPENSATION 275 13,366 11,575 13,100 13,100 15,600 19% 10-19 PENSION 16,321 16,773 164,302 146,800 146,800 141,200 -4% 10-20 OPEB 15,701 20,666 24,030 25,300 25,300 24,500 -3% PERSONNEL COSTS 497,762 544,105 739,107 683,700 693,900 681,600 0% 20-32 SECURITY/SAFETY MATERIALS 300 300 300 - - - 0% 20-38 COMPUTER HARDWARE - - - 2,600 2,600 - -100% MATERIALS & SUPPLIES 300 300 300 2,600 2,600 - -100% TOTAL EXPENDITURES $ 498,062 $ 544,405 $ 739,407 $ 686,300 $ 696,500 $ 681,600 -1% OPERATING BUDGET STATS $ 498,062 $ 544,405 $ 739,407 $ 686,300 $ 696,500 $ 681,600 ACTUAL % OF OPER BUDGET 100% 100% 100% 100% 100% 100% BUDGET % CHANGE 2% 9% 36% -7% 1% -2% REVENUES ELECTRIC FUND $ 498,062 $ 544,405 $ 739,407 $ 686,300 $ 696,500 $ 681,600 PERSONNEL BUDGETED FULL-TIME POSITIONS 5.0 5.0 5.0 5.0 5.0 5.0 323

OTHER FUNDS  MUNICIPAL STREET AID  WORKERS’ COMPENSATION  COMMUNITY TRANSPORTATION  LIBRARY GRANTS  POLICE GRANTS

MUNICIPAL STREET AID FUND CASH RECEIPTS $ DIFFERENCE % CHG 2013/14 2014/15 2014/15 2015/16 FY 16 PP VS FY16 VS ACTUAL BUDGET REVISED PROPOSED FY15 BUDGET FY15 BEGINNING BALANCE 251,558 100 100 100 - 0.0% STATE GRANT 663,940 663,900 664,200 564,200 (99,700) 0.0% INTEREST EARNED 720 - - - - 0.0% TOTALS 916,218 664,000 664,300 564,300 (99,700) 0.0% BUDGET SUMMARY $ DIFFERENCE % CHG 2013/14 2014/15 2014/15 2015/16 FY 16 PP VS FY16 VS ACTUAL BUDGET REVISED PROPOSED FY15 BUDGET FY15 TRANSFER TO GENERAL FUND 664,866 663,900 664,200 564,200 (99,700) 0.0% TRANSFER TO GOVT CAPITAL FUND 251,252 - - - - 0.0% CURRENT YEAR BALANCE 100 100 100 100 - 0.0% TOTALS 916,218 664,000 664,300 100 (663,900) 0.0% 325

WORKER'S COMPENSATION FUND 662 OPERATING REVENUES $ DIFFERENCE 2013/14 2014/15 2014/15 2015/16 FY 16 PP VS % ACTUAL BUDGET REVISED PROPOSED FY15 BUDGET CHANGE BEGINNING BALANCE 1,267,842 1,135,000 1,156,700 1,052,600 (82,400) -7.3% INTEREST INCOME 21,156 10,600 10,600 10,600 - 0.0% PREMIUM FROM CITY 502,143 490,500 490,500 642,500 152,000 31.0% MISCELLANEOUS REVENUE 834 - - - - 0.0% TOTALS 1,791,975 1,636,100 1,657,800 1,705,700 69,600 4.3% OPERATING EXPENSES $ DIFFERENCE 2013/14 2014/15 2014/15 2015/16 FY 16 PP VS % ACTUAL BUDGET REVISED PROPOSED FY15 BUDGET CHANGE PROGRAM EXP./SUPPLIES - CLAIMS 490,730 450,000 450,000 475,000 25,000 5.6% INSURANCE 89,487 92,600 92,600 103,900 11,300 12.2% BANK FEES 1,256 600 600 1,300 700 116.7% STATE OF DEL - SELF INSURANCE TAX 33,774 37,000 37,000 37,000 - 0.0% CONTRACTUAL SERVICES 20,000 57,000 25,000 25,000 (32,000) -56.1% TOTAL EXPENSES 635,247 637,200 605,200 642,200 32,000 0.8% CURRENT YEAR BALANCE 1,156,728 998,900 1,052,600 1,063,500 64,600 6.5% TOTALS 1,791,975 1,636,100 1,657,800 1,705,700 69,600 4.3% 326

COMMUNITY TRANSPORTATION IMPROVEMENT FUND OPERATING REVENUES $ DIFFERENCE 2013/14 2014/15 2014/15 2015/16 FY 16 PP VS % ACTUAL BUDGET REVISED PROPOSED FY15 BUDGET CHANGE PRIOR YEAR BALANCE 209,216 78,900 143,500 144,000 65,100 82.5% GRANTS REVENUE 998,509 500,000 1,677,800 500,000 - 0.0% INTEREST INCOME 324 500 500 500 - 0.0% TOTALS 1,208,049 579,400 1,821,800 644,500 65,100 11.2% OPERATING EXPENSES $ DIFFERENCE 2013/14 2014/15 2014/15 2015/16 FY 16 PP VS % ACTUAL BUDGET REVISED PROPOSED FY15 BUDGET CHANGE PROGRAM EXP. GRANT RELATED 941,217 500,000 1,677,800 644,000 144,000 28.8% PROGRAM EXP. CITY APPROPRIATED 62,800 - - - - 0.0% OPERATING TRANSFERS - OUT 60,500 - - - - 0.0% CURRENT YEAR BALANCE 143,532 79,400 144,000 500 (78,900) -99.4% TOTALS 1,208,049 579,400 1,821,800 644,500 65,100 11.2% 327

LIBRARY GRANT OPERATING REVENUES $ DIFFERENCE 2013/14 2014/15 2014/15 2015/16 FY 16 PP VS $ ACTUAL BUDGET REVISED PROPOSED FY15 BUDGET CHANGE PRIOR YEAR BALANCE 27,838 17,300 44,800 17,300 - 0.0% STATE GRANT 274,108 274,100 278,900 278,900 4,800 1.8% FEDERAL GRANT 2,130 - 2,500 2,500 2,500 0.0% OTHER GRANTS 4,100 - - - - 0.0% TOTALS 308,176 291,400 326,200 298,700 7,300 2.5% OPERATING EXPENSES $ DIFFERENCE 2013/14 2014/15 2014/15 2015/16 FY 16 PP VS $ ACTUAL BUDGET REVISED PROPOSED FY15 BUDGET CHANGE STATE GRANTS FURNITURE/FIXTURES 7,297 2,000 15,100 3,100 1,100 55.0% OFFICE SUPPLIES 24,000 24,000 28,000 24,000 - 0.0% PRINTING AND DUPLICATING 8,900 8,900 14,000 13,200 4,300 48.3% PROGRAM EXPENSES/SUPPLIES 24,165 28,000 29,900 24,100 (3,900) -13.9% BOOKS 125,323 128,900 132,600 129,200 300 0.2% AUDIO VISUAL SUPPLIES 67,594 74,000 75,100 75,100 1,100 1.5% POSTAGE 42 100 100 100 - 0.0% TRAINING/CONF/FOOD/TRAV 2,832 3,500 3,500 2,000 (1,500) -42.9% CONTRACTUAL SERVICES - - 900 900 900 0.0% OFF EQP/REPAIRS & MAINT 3,213 2,000 6,000 6,000 4,000 200.0% COMPUTER HARDWARE - 2,700 - - (2,700) -100.0% OTHER EQUIP - LEASE - 1,200 1,200 1,200 0.0% SUBTOTAL EXPENSES STATE GRANTS 263,366 274,100 306,400 278,900 4,800 1.8% FEDERAL GRANTS PROGRAM EXPENSES/SUPPLIES - - 2,500 2,500 2,500 0.0% SUBTOTAL EXPENSES FEDERAL GRANT - - 2,500 2,500 2,500 0.0% GRAND TOTAL EXPENSES 263,366 274,100 308,900 281,400 7,300 2.7% CURRENT YEAR BALANCE 44,810 17,300 17,300 17,300 - 0.0% TOTALS 308,176 291,400 326,200 298,700 7,300 2.5% 328

POLICE GRANTS OPERATING REVENUES $ DIFFERENCE 2013/14 2014/15 2014/15 2015/16 FY 16 PP VS % ACTUAL BUDGET REVISED PROPOSED FY15 BUDGET CHANGE PRIOR YEAR BALANCE 175,236 77,200 172,100 125,000 47,800 61.9% STATE AND FEDERAL GRANTS RECEIVE 260,306 339,000 436,400 527,300 188,300 55.5% INTEREST INCOME 793 - - - - 0.0% TOTALS 436,335 416,200 608,500 652,300 236,100 56.7% OPERATING EXPENSES $ DIFFERENCE 2013/14 2014/15 2014/15 2015/16 FY 16 PP VS % ACTUAL BUDGET REVISED PROPOSED FY15 BUDGET CHANGE EXPENDITURES PERSONNEL EXPENDITURES CADET PROGRAM SALARIES - - 16,000 71,400 71,400 0.0% CADET PROGRAM FICA - - 1,200 5,400 5,400 0.0% CADET PROGRAM W/COMP - - 700 3,500 3,500 0.0% MATERIALS AND SUPPLIES FURNITURE & FIXTURES 2,322 - - - - 0.0% POLICE EQUIPT & PROG SUPP 125,636 156,000 222,600 410,600 254,600 163.2% TECHNOLOGY EQUIPMENT 17,875 50,000 47,800 20,000 (30,000) -60.0% ADMINISTRATIVE EXPENDITURES CELL PHONE CHARGES 16,508 15,000 15,000 15,000 - 0.0% TRAINING 17,000 32,000 45,000 17,000 (15,000) -46.9% AUDIT FEES 833 1,000 1,000 1,000 - 0.0% CONTRACTUAL SERVICES 3,887 6,000 10,200 - (6,000) -100.0% TOTAL EXPENDITURES 184,061 260,000 359,500 543,900 283,900 109.2% OTHER FINANCING USES OPERATING TRANSFERS-OUT 80,212 124,000 124,000 74,400 (49,600) -40.0% TOTAL FINANCING USES 80,212 124,000 124,000 74,400 (49,600) -40.0% CURRENT YEAR BALANCE 172,062 32,200 125,000 34,000 1,800 5.6% TOTALS 436,335 416,200 608,500 652,300 236,100 56.7% THE ABOVE BUDGET INCLUDES THE POLICE GRANTS FUND, USDOJ BYRNE GRANTS FUND AS WELL AS THE OTHER FEDERAL POLICE GRANTS FUND. 329