Minutes

REGULAR COUNCIL MEETING The Regular Council Meeting was held on June 24, 2013 at 7:30 p.m. with Council President Bonar presiding. Council members present were Mr. Dixon, Mr. Lynn, Mr. Perza, Mr. Slavin, Mrs. Williams, Mr. Hare, and Mr. Hutchison. Mr. Anderson was absent. Council staff members present were Police Chief Hosfelt, Mrs. Mitchell, Mr. Koenig, Mrs. Townshend, Fire Chief West, City Solicitor Rodriguez, and Mrs. McDowell. Mayor Carey was also present. OPEN FORUM The Open Forum was held at 7:15 p.m., prior to commencement of the Official Council Meeting. Council President Bonar declared the Open Forum in session and reminded those present that Council was not in official session and could not take formal action. Bishop Gregory Gordon, 56 S. New Street, Dover, stated that it has been his experience with the Dover Human Relations Commission that they are able to hear and act on situations that Council members do not have time for. There are many members who take a vested interested in what they hear. Bishop Gordon asked that Council support the Commission and allow them to be their extension. The invocation was given by City Chaplain, Bishop Thomas L. Holsey, followed by the Pledge of Allegiance. AGENDA ADDITIONS/DELETIONS Mr. Hutchison moved for approval of the agenda, seconded by Mr. Dixon and unanimously carried. Mr. Perza requested that Item #6A, Pocket Park Design - Corner of North Street and Governors Avenue, be removed from the Consent Agenda. Mr. Slavin moved for approval of the Consent Agenda, as amended, seconded by Mrs. Williams and carried by a unanimous roll call vote (Anderson absent). ADOPTION OF MINUTES - SPECIAL COUNCIL MEETING (BUDGET REVIEW) OF MAY 29 AND JUNE 5, 2013 The Minutes of the Special Council Meeting (Budget Review) of May 29 and June 5, 2013 were unanimously approved by motion of Mr. Slavin, seconded by Mrs. Williams and bore the written approval of Mayor Carey. ADOPTION OF MINUTES - REGULAR COUNCIL MEETING OF JUNE 10, 2013 The Minutes of the Regular Council Meeting of June 10, 2013 were unanimously approved by motion of Mr. Slavin, seconded by Mrs. Williams and bore the written approval of Mayor Carey.

CITY COUNCIL MEETING OF JUNE 24, 2013 PAGE 2 STATE OF DELAWARE TRIBUTE - HONORABLE MENTION FOR THE 2013 RECOGNITION OF COMMUNITY HEALTH PROMOTION PROGRAM The following Tribute was read into the record by the City Clerk: Be it hereby known to all that Jack A. Markell, Governor of the State of Delaware, and Matthew Denn, Lieutenant Governor, recognize The City of Dover on the honor of being named Honorable Mention for the 2013 Recognition of Community Health Promotion Program Honorable Mention demonstrates efforts aimed at improving the overall health of its respective community members. They are to be praised for their efforts to take a prevention-driven approach to health, supporting policies and environmental changes that promote programs to improve physical activity, nutrition/healthy eating, tobacco-free lifestyles, healthy environments; promote healthy lifestyles and integration of the needs of individuals with limited mobility and disabilities in neighborhoods, schools, and workplaces. We extend our appreciation for their work with community-based organizations and residents to create a healthier neighborhood. Presented on this 11th day of June, 2013 by order of the Governor Mayor Carey and Mrs. Ann Marie Townshend, Director of Planning and Community Development, presented the Tribute to City Council. Mrs. Townshend advised members that the City was recognized for its community design principles, the sidewalk program, promoting bike paths and requiring bike racks in developments, and its fitness programs. Mayor Carey stated that all of these programs make the City a better, healthier place for residents and employees. TRIBUTE - SEAN W. MULLEN By motion of Mr. Slavin, seconded by Mr. Lynn, Council Tribute No. 2013-02 was unanimously adopted and read into the record by the City Clerk, as follows: A TRIBUTE EXPRESSING SYMPATHY AND CONDOLENCES UPON THE PASSING OF SEAN W. MULLEN. WHEREAS, the Mayor and Council of the City of Dover recognize the passing of Sean W. Mullen on June 2, 2013 in Lashkar Gah, Afghanistan, while serving as Warrant Officer assigned to the 2nd Battalion, 5th Special Forces Group (Airborne) as a result of wounds sustained when insurgents attacked his unit with an improvised explosive device; and

CITY COUNCIL MEETING OF JUNE 24, 2013 PAGE 3 WHEREAS, Sean W. Mullen served his country valiantly for almost two decades, participating in three campaigns in Afghanistan and three in Iraq and receiving numerous awards and decorations, including the Bronze Star Medal with oak leaf cluster and Meritorious Service Medal with oak leaf cluster, among many others; and WHEREAS, Sean W. Mullen chose to serve something greater than self by upholding our nation's ideals of democracy and equal justice, sacrificing his personal comfort and freedom, and gave his last full measure of devotion to these causes; and WHEREAS, Sean W. Mullen spent his formative years in Dover and was an active member of the Dover community, attending Caesar Rodney High School and Delaware Technical and Community College prior to his military career; has been described as a kind soul with a ready smile and an adventurous spirit; and will be deeply missed by his friends, family, and all of those whose lives he has touched. NOW, THEREFORE, the Mayor and Council extend their deepest sympathy and condolences to the family and friends of Sean W. Mullen, and hope that they will be consoled by the memories of his life and achievements. BE IT FURTHER RESOLVED that the Mayor and Council direct the City Clerk to place this Tribute in the permanent records of the City of Dover and that a copy of this Tribute be provided to the family of Sean W. Mullen. ADOPTED: JUNE 24, 2013 PROPOSED RESOLUTION NO. 2013-18 ENDORSEMENT OF 2013 KENT COUNTY ECONOMIC DEVELOPMENT PROJECTS TO BRING JOBS AND GROWTH TO KENT COUNTY By motion of Mr. Slavin, seconded by Mr. Hutchison, Resolution No. 2013-18 was adopted by a unanimous roll call vote (Anderson absent), as follows: A RESOLUTION EXPRESSING SUPPORT OF THE GREATER KENT COMMITTEE AND THE KENT COUNTY ECONOMIC DEVELOPMENT ROUNDTABLE AND ENDORSING THE "KENT COUNTY ECONOMIC DEVELOPMENT PROJECTS TO BRING JOBS AND GROWTH TO KENT COUNTY" PROPOSAL WHEREAS, the City of Dover is committed to strengthening the local economy, generating economic growth in the region, and improving the quality of life for our residents; and WHEREAS, the City is also committed to working cooperatively with Kent County and the municipalities within the County to develop and present a coordinated position to the State, the General Assembly, other business groups, and private entities; and WHEREAS, as an active member of the Greater Kent Committee, the City has joined together with the County and other municipalities to create the Kent County Economic Development Roundtable to identify critical projects that will benefit central Delaware's economic health; and

CITY COUNCIL MEETING OF JUNE 24, 2013 PAGE 4 WHEREAS, the Roundtable has prepared a consolidated proposal incorporating five economic development projects for 2013 in Smyrna, Dover, Milford, Harrington, and the county; and WHEREAS, the Roundtable proposal has the endorsement of the Greater Kent Committee, which on behalf of all the participants is seeking funding for these initiatives to pump revenue into communities while improving the infrastructure businesses need to remain profitable and competitive. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Dover hereby expresses its support of the Greater Kent Committee and the Kent County Economic Development Roundtable and endorses the "Kent County Economic Development Projects to Bring Jobs and Growth to Kent County" proposal. BE IT FURTHER RESOLVED that the City pledges its support to secure needed funding for such initiatives. ADOPTED: JUNE 24, 2013 VIOLATION OF THE DANGEROUS BUILDING ORDINANCE - PROPERTY LOCATED AT 427 WEST DIVISION STREET, OWNED BY DORIS A. COOPER AND OTHERS During their Regular Meeting of April 22, 2013, City Council considered this matter and tabled action for 60 days to allow members of the Holy Trinity Church of the Living God the opportunity to negotiate a sale; if a sale was not in process after 60 days, the structure located at 427 West Division Street shall be declared a dangerous building and subject to demolition, as recommended by staff. Mr. Lynn moved to remove the item from the table, seconded by Mr. Dixon and carried by a unanimous roll call vote (Anderson absent). Mrs. Ann Marie Townshend, Director of Planning and Community Development, advised members that she met with the members of the church who indicated that they had not been successful in negotiating a sale price that works for both parties. Staff recommended ordering the property repaired or demolished by the owner or equity owner at their own risk; ordering the building inspector to cause the repair or demolition of the structures if not completed by the owner within 30 days; ordering the city manager with the assistance of the city solicitor to cause the cost of repairs or demolition to be charged against the land on which the building exists as a municipal lien or cause such cost to be added to the tax duplicate as an assessment, or to be levied as a special tax, or to be recovered in a suit at law against the owner. Mr. Hare moved for approval of staff’s recommendations, seconded by Mr. Hutchison and carried by a unanimous roll call vote (Anderson absent).

CITY COUNCIL MEETING OF JUNE 24, 2013 PAGE 5 PARKS, RECREATION, AND COMMUNITY ENHANCEMENT COMMITTEE REPORT - JUNE 10, 2013 The Parks, Recreation, and Community Enhancement Committee met on June 10, 2013 with Chairman Dixon presiding. Pocket Park Design - Corner of North Street and Governors Avenue During their Regular Meeting of October 22, 2012, City Council approved the Legislative, Finance, and Administration Committee’s recommendation that a pocket park be established on the property located at 301 South Governors Avenue (on the southeast corner of South Governors Avenue and North Street) once the City holds the title to the property. In developing the park design, it was noted that the City would work with the Downtown Dover Partnership (DDP) to ensure that the design minimizes the maintenance burden through a combination of pavers, mulched landscape areas, and the selection of plants, trees, and shrubs that are attractive yet less intensive to maintain. During the Parks, Recreation, and Community Enhancement Committee meeting of April 8, 2013, members recommended approval of the pocket park design with the addition of appropriate screening for the adjacent neighbors and an appropriate tribute to victims of domestic violence, as requested by Women Against Violence in Every Relationship (WEAVER). During the City Council meeting of April 22, 2013, Council referred this item back to the Parks, Recreation, and Community Enhancement Committee to allow other interested organizations to submit proposals. During the Committee meeting, Mr. Jonathan Street, Civil Designer, Becker Morgan Group, provided a brief history of the project and reviewed a rendering of design improvements made to the proposed pocket park based on comments made during the last Committee meeting concerning hard-scaping, sidewalks, and low-level lighting. Mr. Street said that approval of the park itself was being requested and suggested that the naming of the park be addressed separately. He noted the importance of moving forward since the design and construction of the park would be financed with funds granted by the State and noted that there would be two (2) public hearings in the next several months; therefore, Council would have the opportunity to consider naming and dedicating the park. Responding to Councilman Perza regarding designing a park as opposed to redeveloping the land, Mrs. Townshend stated that in October of 2012, when the City became aware they were going to acquire the land, the Legislative, Finance, and Administration Committee considered and recommended purchasing the land through a Sheriff’s sale. She advised members that when the downtown neighborhood plan was prepared, one of the ideas included was to create parks when the opportunity was presented to add greenery and gathering spaces, which led to the proposed project. Mrs. Townshend was concerned that the park design did not include any benches. Responding, Mr. Street advised that the low-level planters and raised beds would essentially double as benches. Mrs. Townshend said she understood the concerns regarding the possibility of people sleeping on the benches; however, benches would provide a place for citizens to sit and enjoy the park. Mr. M. Milford Caldwell, Jr., 106 Bertrand Drive, Dover, asked what the City’s responsibility would be for the project once it is complete. In response, Mrs. Townshend stated that the City would maintain the area as part of its park system.

CITY COUNCIL MEETING OF JUNE 24, 2013 PAGE 6 Mrs. Horsey expressed her appreciation for addressing the concerns regarding the low-level lighting and privacy for nearby residents and added that she also would like to see a bench included in the design of the park. Mr. Caldwell felt that the park would be a beautiful addition to the City. Responding to Mr. Perza regarding the action to be taken by the Committee, Mrs. Townshend explained that members were being asked to approve the overall design of the park, with the understanding that it would be “tweaked” going forward, and if benches were a desired component of the park, this should be included in the motion. Mr. Lou Colón, Executive Director, Downtown Dover Partnership (DDP), asked if the flower beds would serve as benches in the park. Responding, Mr. Street explained that when benches were considered for improvements to North Street, it caused discrepancies between agreeing parties and they were taken out. He indicated that the elevated landscaping was designed to provide elevation in the park itself but also to allow for benches without physically bolting a bench to the ground. The flower beds would be 18 inches high with a 12-14 inch top that could be used as a bench. In response to Mrs. Horsey, Mr. Street stated that the planters could be used for seating but the flower bed, which would also be elevated, was not intended for this purpose. Responding to Mr. Perza regarding plans for homes located on the west side of North Street, Mr. Colón stated that these homes were occupied; therefore, acquiring them would require location costs. The Committee recommended approval of the basic design concept for the North Street Pocket Park, as amended. Mr. Perza asked to go on record stating his reasoning for seconding the motion and then voting in opposition. He indicated that since only three (3) Committee members were present, he did not want to see the motion fail for a lack of a second and wished to allow the opportunity for a vote. During the Council meeting, Mr. Perza suggested evaluating the property for redevelopment for economic use prior to spending thousands of dollars on semi-permanent park beautification. He suggested referring the item back to the Parks, Recreation, and Community Enhancement Committee to determine if the most appropriate use of the corner lot would be a park or to reserve it for an economic use. Responding to Mr. Lynn, Mr. Koenig, City Manager, stated that this property was purchased at sheriff sale for just under $40,000 for demolition expenses. At that time, discussion began regarding a pocket park because the lot is small, the turning radius is tight, and the other side of the street is confined by a cemetery. He noted that the funding for the pocket park was part of the $3M award from the State of Delaware for the North Street improvements. Mr. Lynn suggested that the current Disposal of Excess Property Procedure be reviewed to address issues such as this.

CITY COUNCIL MEETING OF JUNE 24, 2013 PAGE 7 Mr. Koenig reminded members that the Parks, Recreation, and Community Enhancement Committee recommended approval of the park design in April; however, a separate request for a monument in the park caused Council to refer the item back to the Committee to entertain requests by other organizations. Mr. Perza moved to reject the Committee’s recommendation to approve the basic design concept for the North Street Pocket Park, as amended. The motion was seconded by Mr. Dixon. Responding to Mr. Dixon, Mr. Koenig stated that construction of the park would be paid for with the State Grant and the future maintenance would be paid for by the City’s Grounds Division. On a call for the question, the motion to reject the Committee’s recommendation to approve the basic design concept for the North Street Pocket Park, as amended, failed by a roll call vote of seven (7) no (Dixon, Lynn, Slavin, Williams, Hare, Hutchison, and Bonar), one (1) yes (Perza), and one (1) absent (Anderson). Mrs. Williams moved for approval of the Committee’s recommendation to approve the basic design concept for the North Street Pocket Park, as amended. The motion was seconded by Mr. Slavin and carried by a roll call vote of five (5) yes (Dixon, Slavin, Williams, Hutchison, and Bonar), three (3) no (Lynn, Perza, and Hare), and one (1) absent (Anderson). Review of Revised Active Recreation Area Plan - Nottingham Meadows Members were advised that Nottingham Meadows is a single-family residential development located on the south side of Hazlettville Road west of Wyoming Mill Road. The subdivision was originally developed with 211 residential lots with additional open space parcels. The Subdivision was going through an administrative process for a Minor Lot Line Adjustment and Parcel Consolidation Plan to combine parcels and move property lines. This administrative process will reduce the number of residential lots from 211 to 108 with eight (8) additional open space parcels. There have been sixty-eight (68) houses constructed within the subdivision. Based on the number of lots proposed (108 lots), 29,700 SF of Active Recreation Area is required. The Revised Plan requests that cash in lieu of recreation area construction be accepted for the required 29,700 SF (0.6818+/- acres) of Active Recreation Area. The revision proposes the elimination of the swimming pool and club house that were proposed within the original Active Recreation Area on Brittingham Drive and Wellington Avenue. The swimming pool and clubhouse were not constructed. The following comments and recommendations were submitted by staff of the Department of Planning and Inspections following review of the Revised Active Recreation Area Plan. • The proposed plan for cash in lieu payment meets the area requirements for the Active Recreation Area. The plan is required to provide 0.6818 acres of Active Recreation Area and it is proposing 0.6818+/- acres of Active Recreation Area via cash in lieu.

CITY COUNCIL MEETING OF JUNE 24, 2013 PAGE 8 • Staff recommends approval of the cash in lieu, as the site is located within walking distance to existing recreational facilities at Schutte Park, as stated in the applicants request for cash in lieu. • Staff recommends that the sidewalk be completed by the developer along Hazlettville Road to allow for pedestrian access to Schutte Park. There is a segment of sidewalk along the subdivision frontage that has not been constructed. • Provide a copy of the appraisal for the cost of the value of the land for construction financing to allow for staff to calculate the amount for the cash in lieu. • Cash in lieu shall be paid in full prior to the issuance of a Building Permit for any new residential construction within the subdivision. • Staff notes that the proposed changes, if approved, will require revision to the tree planting plan. • There shall be provisions which ensure that the common open space land shall continue as such and be properly managed and maintained. • In the event, that major changes and revisions to the Plan occur in the finalization of the Revised Recreation Plan, contact the Department of Planning and Inspections. Examples include reorientation of elements, relocation of site components, etc. These changes may require resubmittal for review by the Development Advisory Committee, Planning Commission, or other agencies and commissions making recommendations in regards to the plan. Mrs. Ann Marie Townsend, Director of Planning, advised members that the Planning Commission originally approved the Active Recreation Area Plan in July 2004 and construction plans were approved in February 2006. Mrs. Townshend stated the development was relatively complete, with some vacant areas. Mrs. Townshend indicated that the Active Recreation Plan was originally submitted by Stover Homes. She advised members that Stover Homes had since gone bankrupt, leaving the property owned by the bank, and a new builder was in the process of acquiring the remainder of the development. Mrs. Townshend noted that lots in the southern portion of the development were currently being expunged through an administrative process and would revert back to agriculture. Mrs. Townshend cited the economy as the driving force behind the changes, noting that the developer wished to amend the Active Recreation Area Plan to alter the size of the lots on Wellington Avenue that were not yet developed and to keep approximately 12,848 SF of passive open space, alter the size of the lots identified, and make a cash-in-lieu donation for the remainder because the development is essentially adjacent to Schutte Park.

CITY COUNCIL MEETING OF JUNE 24, 2013 PAGE 9 Mrs. Townshend stated that following the Committee’s review, the request would go to the Planning Commission, who would determine if it was impractical to provide the Active Recreation Area on site due to the proximity to the City Park. If the Commission were to make that determination, the matter would return to the Committee and ultimately proceed to Council for approval of acceptance of the cash-in-lieu option. Mr. Mike Riemann, Becker Morgan Group, explained that the bank owns the development and the request was being made in an effort to complete the development and put a homeowners’ association in place. Mr. Riemann advised members that the developer met with the property owner most immediately affected by the passive open space, who concurred with the proposal. Mr. Riemann stated that a clubhouse and a pool in a project with 108 lots would not work in this economy and the developer would not be able to finish the project if required to move forward if these facilities were required. Mr. Riemann added that the developer was agreeable to completing the sidewalk along the frontage of Hazlettville Road, which included crosswalks as part of the signal crossing, and to connect the sidewalk to Schutte Park, which would provide access to the park as part of the proposal. Mr. Riemann provided copy of a petition signed by 28 of the approximately 50 residents of the subdivision in favor of the proposal presented, which he stated would be provided to the Planning Commission for their meeting scheduled for June 17, 2013. He indicated that meetings had been held with representatives from five (5) of the residences in the development who said they were in favor of the proposal. Mr. Riemann stated that the only road not yet constructed was Wellington, which was included in the proposal and would complete the front half of the project including utilities, storm drains, etc. He stated that it was important to move forward with the project because an illegal pond that did not meet requirements had been constructed by the original developer as a temporary stormwater area and Kent Conservation District requested that it be corrected. As part of the project, this sediment trap would be eliminated and the storm drain would be reconnected and directed to the pond. Responding to Mr. Perza regarding the property on the south side of the development, Mr. Riemann stated that this portion of the land would be sold to a farmer and would not be a future phase of the development. Mr. Riemann stated that part of the proposal to the Planning Commission references these lots as being expunged and they will not be recorded lots. In response to Mr. Perza, Mr. Riemann advised that the dead-end roads were discussed with Public Works staff and it was determined that because of the length, a cul-de-sac was not required based on the City’s Code. He indicated that these would be “stub streets”or perhaps a “hammer head” allowing drivers to turn around at the end of that street. He stated that Public Works staff would advise how these streets should be finished off. He noted that there are minimum requirements on the radius of the road that must be met in order to round off the road and, because there is a home in the area of the dead-end, this requirement could not be met. Mrs. Townshend added that the stub streets are required in the event that the development grows. Responding to Mr. Perza, Mr. Riemann stated the changes would not affect the value of the property.

CITY COUNCIL MEETING OF JUNE 24, 2013 PAGE 10 In response to Mr. Perza regarding the area surrounding the development, Mr. Dave Vasso, representing the developer, Tradition Homes of Delaware, LLC, stated that the land was under contract to be sold to a farmer. Responding to Mr. Dixon’s inquiry concerning the open area, Mr. Riemann advised there would be about 12,000 square feet of passive open space. In response to Mrs. Horsey, Mr. Riemann stated that homeowners were aware that the surrounding area would be farmland and that there would be a 30-foot buffer of passive open space between the lots and the farms. Mrs. Townshend also added that because property to the west of the subdivision is targeted for agricultural land preservation, it was her belief that the properties were required to have language in the deed about being next to an agricultural district. Mr. Perza indicated his preference for rounding out the street ends, stating it was his feeling that roads that are just “chopped off” at the end of a development look unsightly. Responding, Mrs. Townshend indicated that the jersey barriers would be removed. Mrs. Townshend provided members with correspondence that had been received from homeowners who were opposed to the proposed plan. The Committee recommended approval of the Revised Active Recreation Area Plan for Nottingham Meadows, as recommended by staff, and acceptance of the petition from 28 lot owners in the development in favor of the proposal. Mr. Perza suggested rounding out the dead-end roads involved but indicated that this was not a part of the motion to approve the Revised Active Recreation Area Plan, acknowledging that City Code would take precedence. By consent agenda, Mr. Slavin moved for approval of the Committee’s recommendation, seconded by Mrs. Williams and carried by a unanimous roll call vote (Anderson absent). Update - CDBG Program Mrs. Tracey Harvey, Planner I, reviewed the Status of FY-12 CDBG Projects Report including monthly statistics for May 2013. She advised members that applications for the City of Dover Community Development Block Grant (CDBG) Housing Rehabilitation Program would be accepted from the first 20 applicants on June 12, 2013 in the City Hall Conference Room from 9:00 a.m. to 1:00 p.m. She noted that the program was being managed by Milford Housing Authority. Mrs. Harvey also advised members that Central Delaware Habitat for Humanity had purchased the eleventh Neighborhood Stabilization Program (NSP) home in the City of Dover. She stated that the house was currently under renovation with completion expected by the end of the month and that a buyer had been obtained. Mr. Slavin moved for acceptance of the Parks, Recreation, and Community Enhancement Committee Report, seconded by Mr. Dixon and unanimously carried.

CITY COUNCIL MEETING OF JUNE 24, 2013 PAGE 11 UTILITY COMMITTEE REPORT - JUNE 10, 2013 The Utility Committee met on June 10, 2013 with Mr. Perza presiding in the absence of Chairwoman Williams. Proposed Revisions to the Dark Fiber Leasing Standard Operating Policy Mr. Scott Koenig, City Manager, advised members that the City of Dover Electric Department owns and operates a fiber optic loop around the perimeter of the City. This loop is used as part of the electric transmission protection system, two (2) way radio communication system, and data/telephone transmission for City and Utility facilities. Within this fiber network there are spare fibers that are not utilized or planned to be utilized by the City in the near future and some of this spare fiber is currently being leased to Bayhealth Medical Center, Windstream, and the State of Delaware through the Electric Department. The original leasing policy was created and approved by City Council on January 14, 2008. Dark fiber leasing is a common practice among Public Power Utilities as a method to enhance utilization of fiber assets, provide customers an affordable high-speed communication path, and generate additional revenue to offset operation expenses. Dark fiber leasing is a practice where the utility provides a fiber path between two (2) points and the customer installs the electronic communication equipment which provides the communication path. Based on the abundant request for fiber optic installations in FY13, staff felt that the City’s rates may need to be adjusted. The requests that were approved for new fiber installations accounted for about 42% of the new service budget. Staff investigated the City’s cost compared to other local fiber optic providers and found that the City’s rates were much lower than those of other local providers. It was found that the going rate for private fiber suppliers was $65 to $125 per mile/pair/month. Converting the City’s rate to the same rate structure would be equivalent to $10.08 per mile/pair/month. Staff recommended that the rate be adjusted to $.005 per strand/foot/month. This would be equivalent to $52.80 per mile/pair/month. Mr. Koenig advised members that this was a relatively small revenue stream in the electric utility, which is part of Miscellaneous Revenues and represents less than $50,000 per year in total revenue; however, the adjustment was recommended to achieve a level that was comparable to local providers since current rates were substantially lower than the market. Staff recommended that the Dark Fiber Leasing Standard Operating Policy be revised as submitted. Responding to Mr. Hutchison, Mr. Koenig stated his belief that the current lease agreement included several different increments including five (5) year and ten (10) year options and staff would investigate when price increases could be implemented. The Committee recommended approval of the revisions to the Dark Fiber Leasing Standard Operating Policy. By consent agenda, Mr. Slavin moved for approval of the Committee’s recommendation, seconded by Mrs. Williams and carried by a unanimous roll call vote (Anderson absent).

CITY COUNCIL MEETING OF JUNE 24, 2013 PAGE 12 TEA/NAES Report (February) Mr. Scott Koenig, City Manager, reviewed the TEA/NAES Monthly Reports for December 2012 and January 2013, and reminded members that staff reviews this report with TEA on a monthly basis. The report is provided to allow for the monitoring of electric sales and revenues received, which provides a better understanding of any fluctuations that occur and allows the opportunity to make improvements if deemed necessary. Mr. Koenig stated that the Executive Summary on Page 1 of the report stated Dover’s budgeted cost for all power supply (capacity and energy) for the month of February as $92.87/MWh and actual cost of all power supply (capacity and energy) as $85.59/MWh. He noted that this was the reason that there was a proposal in the FY 2014 budget to adjust the electric rates. Mr. Koenig explained that over the last two (2) budget years, power supply costs had come in under the amount budgeted in the long-term forecast and the City was able to rebate that money to customers through lower rates. He advised members that forecasting and rate modeling had been performed for the next three (3) years and it was believed that the rates that were proposed for FY 2014 could be held; however, the City had seen some dramatic drops in prices. He noted that Mrs. Mitchell had indicated that with the new proposed rates the City would be back to FY 2007 electric rates, which was good for industry and residential customers. Mr. Blakeman noted that the budgeted unhedged energy cost reflected on Page 2 of the report was considerably higher than the actual unhedged costs for power (approximately 50%-60% higher) and questioned the reason for this large discrepancy. Responding, Mr. Koenig stated that the unhedged portion was still benefitting from extremely low natural gas rates. He explained that the City’s strategy had been to pull back its hedges from as high as the 90% range to approximately 80%; therefore, 20% of power was being bought in the market and risk was attached to that market. He indicated that although prices were currently very low, the summer was approaching and prices tend to fluctuate during this period. He stated that if purchases were unhedged and made in the spot market, very low numbers would be seen; however, risk would be very high. He noted that the City’s purchases are made approximately three (3) years out. Mrs. Mitchell, Controller/Treasurer, stated that she wished to ensure that there was no error in the report; however, noted that the real-time market is much lower. She explained that the budget is based on the forecast rather than the hedges that are made. Subsequently, Mrs. Mitchell advised members that she had reviewed the monthly budget report that she submits to Council and determined that the energy portion of the PJM charges were only 39% spent versus the amount budgeted; therefore, she felt that the budgeted figure was high because it was prepared by PACE Global the year before last when the decline in natural gas prices was not anticipated. Quarterly Review of Utility Related Capital Investment Plan (CIP) Electric and Water/Wastewater (January, February, and March) Mr. Scott Koenig, City Manager, referred members to General Fund - Major CIP Projects Report dated March 31, 2013, noting that a number of projects had changed substantially since March. The library project was listed as 82.1% spent; however, he stated that only a few punch list items remained, including the building dashboard, and approximately $100,000 was being held as part of the retainage. He stated that the project was nearly complete and it was hoped that it would be closed out by June 30, 2013.

CITY COUNCIL MEETING OF JUNE 24, 2013 PAGE 13 Mr. Koenig informed members that Street Program work was getting ready to begin and a number of related projects would be removed when this Program starts. The Piney Point Well was under construction and he indicated that this was a design/build project to expand the City’s water supply to meet the projected needs of the utility which was authorized by Council at just under $1M through a budget revision. The NRG Sanitary Sewer Upgrade was an ongoing project that had involved several change orders. Mr. Koenig noted that a line had failed resulting in significant inflow and infiltration (I & I) into the sanitary sewer system and staff was completing the administration portions of that to allow for reimbursement through impact fees through the County for the reduction and elimination of I & I. Other I & I projects through downtown Dover and Fox Hall were now complete and benefits through the billing system were anticipated. Mr. Koenig stated that the Frazier Substation upgrade had been completed. Much of the work was performed in-house and the project came in quite a bit below the original price. The funds saved were expended for new development requests related to fiber and transformers; however, a majority of these funds would be reimbursed. Mr. Blakeman stated that the lighting at Dover High School on the highway looked “great,” noting that cable on the north side of the street had been installed and the poles were topped off. He inquired if telephone cable would be buried as well as this would improve the appearance in front of the school. Responding, Mr. Koenig stated his understanding that there would be a full relocation of overhead wire and that the poles may be removed; however, he stated that he would check on this to see if this was part of the associated cost. Mr. Blakeman noted that the turbine-level window modifications were removed from the CIP and questioned if the insurance company had “backed off” on their requirement to put protection in this area. Responding, Mr. Koenig stated that after a number of discussions and study, the insurance company stepped back from that original recommendation. Responding to Mr. Perza regarding the status of the Tar Ditch Interceptor Project from 2010, Mr. Koenig stated that it was staff’s desire to return to the residents on Kerbin Street within 30-60 days to reinitiate the project. He indicated that staff had concerns regarding the overflow of the sanitary sewer in that area, noting that although this was not the cause of the problem, it was felt that re-laying the sewer would help. UPDATES Calpine Energy Center and Garrison Oak Technical Park Project Mr. Scott Koenig, City Manager, advised members that staff was in the process of finishing final site plan approvals for the Calpine Energy Center. Calpine was making modifications to utilities and addressing various agency comments while working under a limited authorization to do site and pre-foundation work. He stated that the City was completing the design of the Garrison Oak Technical Park related to the subdivision as well as related utility layouts. Mr. Koenig reminded members that the City had a general contract with Becker Morgan Group for the subdivision and site planning related to the roads, storm sewer, some of the gravity sewer and water main; a separate engineering contract with URS related to a water tower; and a third engineering contract with Pennoni Associates for the wastewater pumping station and force main that will transmit wastewater from the Garrison Park project to White Oak #5 (west of Route 1). He indicated that all of these projects were underway and the water tower project was out to bid as a design-build contract. The

CITY COUNCIL MEETING OF JUNE 24, 2013 PAGE 14 engineering on the wastewater pumping station was approximately 85-95% complete and expected to be bid out shortly. Mr. Koenig stated that the Garrison Oak Technical Park plans were nearing completion and a bid package was expected to be prepared in the coming months. Calpine was continuing to hold a weekly conference call with staff to work out the completion of site plans and other issues associated with getting power from the energy block to the Cartanza 230KV tie station, and alignments and easements were being worked on by the City of Dover and Calpine. A meeting had been held with Eastern Shore Natural Gas regarding the extension of the pipeline from the Cheswold area to the Garrison Farm. In addition, a meeting had been scheduled between Calpine and the residents of Wild Meadows for June 13, 2013 to provide residents a project overview, including participation by Kvaerner, the Engineering, Procurement, and Construction contractor, and a presentation from Eastern Shore Natural Gas regarding the proposed pipeline from Cheswold to the Garrison Farm, which would be adjacent to Wild Meadows. Mr. Koenig stated that staff had been adamant with Eastern Shore Natural Gas and Calpine that neighbors would be kept abreast of development and that Calpine had reached out substantially to Wild Meadows. Dover Sun Park Mr. Scott Koenig, City Manager, referred members to the FY13 White Oak Solar Park Incremental Cost Report, noting that the original budget indicated that total power supply costs for the current fiscal year were expected to be $1,766,100 with an incremental cost of the Dover Sun Park of slightly over $500,000. He noted that year-to-date through April, the City had spent approximately $1.44M, but the incremental cost to the rate payers to meet the energy niche of renewables (approximately 3%) was only approximately $151,000. He recalled that slightly more energy was coming from the solar field than originally expected, but the City had been able to manage the cost. By consent agenda, Mr. Slavin moved for acceptance of the Committee’s report, seconded by Mrs. Williams and carried by a unanimous roll call vote (Anderson absent). LEGISLATIVE, FINANCE, AND ADMINISTRATION COMMITTEE REPORT - JUNE 10, 2013 The Legislative, Finance, and Administration Committee met on June 10, 2013 with Chairman Lynn presiding. Proposed Bond Resolutions Mr. Lynn noted that he had received a request from staff to reverse the order of consideration for Items #1A and #1B. A Resolution Amending and Restating Water and Sewer Bond Resolution Providing for the Issuance by the City of Dover of Water and Sewer Revenue Bonds and Related Matters Mrs. Donna Mitchell, Controller/Treasurer, informed members that the proposed Resolution would amend the City’s Water/Wastewater Bond Resolution of 1984. She explained that Bond Counsel had revised the Resolution to make it more current and Mrs. Mitchell reviewed the significant changes from the current Resolution. She noted that additional language relating to the Trustee had been included and the maximum amount that must be set aside for debt service each year was defined. Mrs. Mitchell indicated that a provision was added to allow utilizing the services of the City Engineer when bond issues are brought forward rather than having to hire an outside consultant and that this would result in financial savings. She stated that the Trustee would be changed from

CITY COUNCIL MEETING OF JUNE 24, 2013 PAGE 15 U.S. Bank to The Bank of New York Mellon Trust Company, which manages the City’s electric bonds and charges lower fees. She advised members that the amount of monies that would be needed for the State revolving fund loans would be excluded from the maximum debt service. Mrs. Mitchell reminded members that over the last three (3) years, the City had engaged in three (3) State revolving fund loans and, as a result, the maximum amount of debt service that must be paid in any one (1) year had to be set aside. She indicated that the State had agreed to allow the City to exclude these loan amounts from the maximum debt service; therefore, only the amount of the reserve (the amount of the bonds) must be put in, which would free up money for the City. Referring to Section 17 of the Resolution, Mr. Lynn questioned the amount of the “reasonable” fees referenced. Responding, Mrs. Mitchell explained that the City was currently paying the Bank of New York $500 per year for electric bonds. In response to Mr. Lynn regarding the selection of the Bank of New York Mellon Trust Company as Trustee, Mrs. Mitchell stated that this institution was selected because it manages the City’s electric bonds and was agreeable to having the water and sewer bonds transferred to them. She explained that the City could not get U.S. Bank to make the change; however, refinancing the bonds gave the City the ability to make the transfer to the Bank of New York. Mr. Lynn inquired if there were any local banks that would able to provide this service, and Mrs. Mitchell stated this could be researched before the matter was finalized. Staff recommended adoption of the Amended and Restated Water and Sewer Bond Resolution Providing for the Issuance by the City of Dover of Water and Sewer Revenue Bonds and Related Matters. The Committee recommended approval of staff’s recommendation. By consent agenda, Mr. Slavin moved for approval of the Committee’s recommendation, seconded by Mrs. Williams and, by a unanimous roll call vote (Anderson absent), the Amended and Restated Water and Sewer Bond Resolution Providing for the Issuance by the City of Dover of Water and Sewer Revenue Bonds and Related Matters was adopted (Exhibit #1). A Resolution Authorizing the Sale of Up to $6,500,000 Water and Sewer Revenue Bonds of the City of Dover Mrs. Donna Mitchell, Controller/Treasurer, advised members that this Resolution would authorize the sale of Water and Sewer Revenue Bonds and explained that $4M of the funds would be used for the Calpine Energy Center and approximately $2M would be used to refinance the bonds currently outstanding on the 2003 issue. She noted that the difference of $500,000 would be used to pay issuance costs and to bring the reserve to the level needed and would come from the bond proceeds rather than being taken from City funds. Responding to Mr. Shevock, Mrs. Mitchell stated that there were not many bonds outstanding from the 2003 issue and estimated the savings on interest would be approximately $60,000. She was unsure of the exact interest rate of the previous issue but noted that the difference in interest rates must be greater than 3% or the City would not proceed.

CITY COUNCIL MEETING OF JUNE 24, 2013 PAGE 16 Staff recommended adoption of the Resolution authorizing the sale of up to $6,500,000 water and sewer revenue bonds of the City of Dover. The Committee recommended approval of Staff’s recommendation. By consent agenda, Mr. Slavin moved for approval of the Committee’s recommendation, seconded by Mrs. Williams and, by a unanimous roll call vote (Anderson absent), the Resolution authorizing the sale of up to $6,500,000 Water and Sewer Revenue Bonds of the City of Dover was adopted (Exhibit #2). Proposed Ordinance #2013-08 Amending Chapter 70 - Offenses and Miscellaneous Provisions, Section 70-7 - Registered Sexual Offenders, Subsection (b) - Prohibition on Residency and Employments During the Special Council Meeting of May 28, 2013, Council directed staff to prepare a Code amendment that would remove the requirement for offenders residing or employed within 500 feet of a day care center at the time of adoption of Ordinance #2012-08 (April 9, 2012) to move or resign their employment. Police Chief James Hosfelt stated that the proposed amendment would allow two (2) individuals who currently reside within 500 feet of a daycare center to remain in their residences, noting that if they moved in the future, they would have to be in compliance with the ordinance. The Committee recommended adoption of Proposed Ordinance #2013-08. By consent agenda, Mr. Slavin moved for approval of the Committee’s recommendation, seconded by Mrs. Williams and carried by a unanimous roll call vote (Anderson absent). (The First Reading of the ordinance will take place during the latter part of the meeting.). Proposed Pricing for Sale of Garrison Oak Technology Park Lots Mr. Scott Koenig, City Manager, advised members that in recent months there had been two (2) requests for pricing on parcels in the Garrison Oak Technical Park. Based on these inquiries, the Economic Development Office requested comparable pricing information from R&R Commercial Realty and McGinnis Commercial Realty. Referring to correspondence from Mr. Charles Rodriguez from R&R Commercial Realty, Mr. Koenig quoted a sales price for similar projects ranging between $22,983 and $40,000 per acre, with an average of approximately $31,182 per acre. He stated that Mr. Philip McGinnis of McGinnis Commercial Real Estate Company recommended a price of at least $30,000 per acre with conditions on the pricing. Based on this input, the Economic Development Office proposed a price of $35,000 per acre and recommended that the City Manager be authorized to negotiate a price decrease of up to $5,000 per acre when appropriate. Mr. Koenig stated that any sale of land would come before Council for affirmation of sale prior to execution. The Committee recommended approval of land pricing at Garrison Oak Technical Park at a price of $35,000 per acre and that the City Manager be authorized to negotiate a price decrease of up to $5,000 when appropriate.

CITY COUNCIL MEETING OF JUNE 24, 2013 PAGE 17 By consent agenda, Mr. Slavin moved for approval of the Committee’s recommendation, seconded by Mrs. Williams and carried by a unanimous roll call vote (Anderson absent). Review of Ordinance Sponsorship At the request of Councilman Lynn, a history of the requirement for three (3) sponsors to propose amendments to the Dover Code was compiled. Members were advised that currently all ordinances or proposed Charter changes must have three (3) sponsors (three (3) members of Council) before they are presented to the appropriate committee for consideration and subsequent recommendation to the Council. The only exceptions are emergency ordinances, zoning ordinances or map amendments, ordinance amendments submitted by Council-appointed staff or a committee, and ordinances passed in consideration of a comprehensive review of the Code. Councilman Lynn expressed his desire to either remove the sponsorship requirement for Council members or impose the same requirements for Council-appointed staff. He advised members that executive City staff can propose changes with only one (1) sponsor. He stated the purpose of the ordinance was to “equalize the playing field” and allow ordinances to be sponsored by only one (1) Council person. Mr. Hare stated that some support from Council should be required for staff to present Code amendments. He felt that if the support of three (3) Council members could not be obtained, then there was not enough support to merit consideration. Responding to Mr. Shevock, Mr. Lynn stated that consideration of how this matter should be addressed was open for discussion. He indicated his wish to eliminate the requirement that Council members must obtain three (3) sponsors; however, stated that another possibility would be to require that staff obtain multiple sponsors, as Council must. Mr. Hare felt that if a Council member could not get two (2) additional members to support an amendment, there was no need to bring it up, as this would waste time. He felt that this should apply to staff as well and that they should attempt to obtain the support of three (3) Council members; one (1) staff member and two (2) Council members; or the City Manager and two (2) Council members. Mr. Shevock stated he was more inclined to require the support of two (2) people before bringing an item to a committee for discussion. His concern was that there may be objections that a matter was discussed prior to the meeting and that an item was being “ramrodded through.” Mr. Shevock questioned if there were requirements in the Code or Charter that would prohibit these changes. Mr. Lynn stated his concern was the “chilling effect” that a mandate for multiple sponsors could have on amendments, noting that debate may be needed before a decision can be made as to whether a member chooses to sponsor an amendment. He felt that open, frank discussion was needed on every item and that eliminating the need for sponsors across the board might accomplish this. Mr. Lynn indicated that debating an issue on the floor brings about brainstorming that can turn a mediocre idea into a great idea when presented to full Council and that the current policy should be changed to one (1) sponsor across the board.

CITY COUNCIL MEETING OF JUNE 24, 2013 PAGE 18 Mr. Hare expressed his belief that at least two (2) sponsors should be required to support a proposed amendment. Mr. Perza stated that the current policy was inconsistent in that there were two (2) ways to have an item placed on the agenda and he felt that either way was subject to manipulation. He felt that if a Council member were able to get support from one (1) other person to agree to discuss the amendment, this should be enough to place the item on the committee agenda and that obtaining this support would not be difficult. He suggested information be sent to the attention of the Council President who could communicate that the item had been proposed and determine if members would like to at least discuss the matter before placing it on the agenda. This would also prevent the City from working on a matter if there was no will from the elected representatives to go forward and would also prevent one (1) person from unilaterally putting items on an agenda. Mr. Lynn noting that, historically, committee chairs had unilaterally refused to put items on agendas, and he wished to eliminate any possibility of a “chilling” effect or manipulation. He felt that only one (1) sponsor should be required. Mr. Perza noted that it could become apparent very quickly if this were not a good idea if agendas became overloaded. He was unsure if there was a problem with items not being placed on agendas and stated that during his past year of service, he had not had a problem placing items on the agenda. Mr. Hutchison felt that at least two (2) or three (3) people should sign on to proposed amendments and noted that he would lean toward two (2) in view of Mr. Anderson’s current absence due to deployment. Mr. Shevock inquired if there had been a problem and suggested “if it’s not broken, why try to fix it.” He concurred with Mr. Hutchison that perhaps two (2) sponsors would be adequate due to Mr. Anderson’s absence. Mr. Lynn felt that it was an irritant that he would be required to find two (2) additional people to get on board with an idea when those who work for Council are not required to do so and questioned why City staff would be imbued with more power than the officials that they serve. Mr. Shevock concurred that requirements should be the same for administration as they are for Council. Responding to Mr. Hare’s suggestion that the City Manager and the director who proposes an ordinance determine if the item is brought forward, Mr. Lynn stated that this could be a problem if the City Manager and director were “at loggerheads.” Mr. Hare suggested that a Council-appointed department head be required to seek one (1) additional sponsor and a City Manager-appointed director obtain the approval of the City Manager. Mr. Lynn suggested that the requirement for three (3) sponsors lends itself to violations of the Freedom of Information Act (FOIA). He felt that calling nine (9) members to try to get someone “on board” could be interpreted as a serial meeting and that requiring one (1) sponsor would avoid these problems.

CITY COUNCIL MEETING OF JUNE 24, 2013 PAGE 19 Mrs. Ann Marie Townshend, Director of Planning and Community Development clarified that placing an item on an agenda was the prerogative of the Council President for the Council agenda and the Committee chair for committee agendas. In regard to development of ordinances, she stated that she currently has only to develop an ordinance and if the Council President or Committee Chair approves this item for the agenda, it goes on the agenda. She stated that it would not cause problems for staff to be required to obtain two (2) sponsors or for staff to be placed on the same footing as Council members in regard to ordinance sponsorship. Mrs. Townshend advised members that a great deal of time would be wasted if she spent months preparing an ordinance without the support of at least two (2) sponsors. Mrs. McDowell, City Clerk, stated that differentiating between the ordinances brought forth by City Manager-appointed or Council-appointed staff would complicate the process and possibly create problems and suggested a requirement for sponsorship by two (2) Council members for any ordinance. She felt that if staff reporting to the City Manager had ordinances to bring forth, this would be the responsibility of the City Manager. She requested clarification as to whether emergency ordinances, zoning ordinances or map amendments, and ordinances passed in consideration of a comprehensive review of the Code would be excluded from this requirement if a change were made from the current procedure, which does not require staff to obtain sponsorship. Mrs. McDowell noted that these types of ordinances are fairly standard and must come forward. Mrs. Townshend concurred that these types of ordinances, including Comprehensive Plan amendments and rezonings, should be excluded from sponsorship requirements and advised members that if a rezoning ordinance were not brought forward, the City would be denying the applicant due process; however, she felt that zoning text amendments should be subject to sponsorship requirements. She was comfortable that staff could work with any recommendation made by the Committee. Mr. Shevock stated that the current system whereby the staff member requests placing an ordinance on the agenda from a committee chair would provide the necessary two (2) sponsors. Responding, Mrs. Townshend stated that she felt that Mrs. McDowell’s suggestion for two (2) Council sponsors would be a “cleaner” approach since these members are elected and staff works for them. Mr. Dixon concurred with Mr. Perza’s earlier comment that “if it’s not broke, don’t fix it,” and Mr. Shevock agreed. Mr. Hare moved to recommend that the sponsorship of two (2) Council members be required for any proposed ordinance, excluding emergency ordinances, zoning ordinances, map amendments, ordinances passed in consideration of a comprehensive review of the Code, and Comprehensive Plan amendments, seconded by Mr. Rushe. The motion failed by a vote of two (2) yes (Hare and Rushe) and two (2) no (Lynn and Shevock). Mr. Hare moved to leave the requirements as they were currently set forth, seconded by Mr. Shevock. The motion failed by a vote of two (2) yes (Hare and Shevock) and two no (Lynn and Rushe).

CITY COUNCIL MEETING OF JUNE 24, 2013 PAGE 20 As a point of order, Mr. Bonar stated that no motion was needed to leave the procedure as it was currently being followed. Mr. Lynn moved to reduce the Council obligation for sponsorship from three (3) sponsors to one (1) sponsor and to leave the staff obligation unchanged. The motion failed for lack of a second. Mr. Rushe felt that requiring two (2) Council members to agree was the best course of action, noting that it would be difficult for an ordinance to move forward without the agreement of at least one (1) other member. Mr. Lynn felt there should be an opportunity for all matters to be discussed on the floor as it was his belief that the power of debate can transform an item to a different idea. Responding to Mr. Rushe, Mr. Lynn stated that he was unaware how other municipalities handle this matter. Mr. Perza suggested that this matter be brought back for discussion at a future meeting after obtaining input from staff regarding the most efficient use of the process. Mrs. McDowell noted that the history of the sponsorship requirement had not been included in the meeting packet and suggested that the matter be deferred until the next meeting so that this information could be provided and information could be gathered regarding what other municipalities require for sponsorship. Mr. Hare stated that he did not disagree that there was inequity between the staff and Council sponsorship requirement; however, he stated that even in Congress a second sponsor is required. The Committee tabled the matter so that members of the Committee and Council could review the history of how the current procedure came about. APPOINTMENTS (REAPPOINTMENTS) RECOMMENDED BY MAYOR CAREY Board of Adjustment Mayor Carey requested the following reappointments to the Board of Adjustment for three-year terms to expire in July 2016: K. C. Sheth, Chairman William Hufnal By consent agenda, Mr. Slavin moved for approval of the reappointments, seconded by Mrs. Williams and carried by a unanimous roll call vote (Anderson absent). Public Advisory Committee (PAC) of the Dover-Kent County MPO Mayor Carey requested the following reappointments to the Public Advisory Committee (PAC) of the Dover-Kent County MPO Board of Adjustment for two-year terms to expire in July 2015: Prameela Kaza James P. Webster

CITY COUNCIL MEETING OF JUNE 24, 2013 PAGE 21 By consent agenda, Mr. Slavin moved for approval of the reappointments, seconded by Mrs. Williams and carried by a unanimous roll call vote (Anderson absent). Planning Commission Mayor Carey requested the following reappointments (appointment) to the Planning Commission for three-year terms to expire June 1, 2016: Kathleen Still - At-Large (Reappointment) John H. Baldwin, Sr. - Fourth District (Reappointment) Edgar C. Cregar, Jr. - Fourth District By consent agenda, Mr. Slavin moved for approval of the reappointments (appointment), seconded by Mrs. Williams and carried by a unanimous roll call vote (Anderson absent). SUPPORT FOR HOUSE BILL AMENDING TITLES 9 AND 22 OF THE DELAWARE CODE RELATING TO MILITARY LEAVE OF ABSENCE OF OFFICIALS OF A MUNICIPALITY OR COUNTY Members were provided with proposed State legislation to amend Titles 9 and 22 of the Delaware Code relating to military leave of absence of officials of a municipality or county. Council President Bonar explained that the bill would provide that an elected official of a municipality or county government shall be extended a leave of absence from office if such person is ordered to military service. The leave of absence shall not extend beyond the elected official’s term of office. A municipality or county may fill the elected official’s office with an acting official until the return of the elected official serving in the military. Upon returning from a leave of absence for military service, a returning elected county or municipal official is entitled to be restored to office for the unexpired term. This change in the Delaware Code does not apply to the General Assembly or statewide elected offices. Responding to Mrs. Williams, Council President Bonar stated that a specific mechanism for filling the seat with an acting official had not been recommended, nor was it required. Mr. Hutchison did not believe that the legislation was necessary because the Mayor, At-Large, and other Council members would represent the member’s district while they were deployed. Mr. Hare expressed concern with the possibility that a Council member could be deployed, return for the election, and then be re-deployed several times without having to relinquish their seat. Mr. Slavin proposed that the Legislative, Finance, and Administration Committee consider a mechanism for securing the deployed member’s seat. Mr. Lynn stated that legislation to that effect was considered prior to Mr. Anderson’s deployment; however, it did not have the support necessary to pass. He expressed concerns that future Councils may not be as understanding or may seek to remove deployed members for political reasons. Mr. Lynn recommended supporting Representative Paradee’s proposed legislation. Several members expressed concern with the State legislating this issue for the municipalities. Mr. Lynn moved to support the House Bill amending Title 9 and Title 22 of the Delaware Code. The motion failed for the lack of a second.

CITY COUNCIL MEETING OF JUNE 24, 2013 PAGE 22 SETTING OF RATES FOR FISCAL YEAR 2013/2014 Property Tax Council President Bonar advised members that the current property tax rate for the City of Dover was .3378 cents per $100 of assessed value and that the proposed budget would maintain the same rate for the upcoming tax billing. Mrs. Williams moved to set the 2013/2014 property tax rate at .3378 cents per $100 of assessed value. The motion was seconded by Mr. Hare. Mr. Slavin stated that he could not support a budget that included $520,000 more in expenditures than revenues. He indicated that the five (5) year forecast showed that, at this rate, the City would be at a structural deficit of more than $7M and that this would add to deferred maintenance, which had already increased over the past few years. He felt that the budget did not adequately address the potential for increases in union contracts and would leave Council unprepared. He expressed concern about the transfer from the Electric Fund of 8.6%, which was 5.1% in FY07. Mr. Slavin noted that the entire budget was predicated on the carry-forward balance that was based on projected revenues. According to Mrs. Mitchell, the transfer taxes for this fiscal year should have been $1.37M and as of June 18, 2013 they were at $1,092,000 - a shortfall of $278,000. Mr. Slavin stated that the whole budget was predicated on a carry-forward balance that was already outstripping revenue and that there would be a need to fill this transfer tax “hole” as well, unless additional transfer tax in the amount of the shortfall was received before June 30, 2013. Mr. Slavin expressed concern with the Street and Alley program, which used to be a strong program that was now moving from property tax funding to bond and state grant funding. He stated that it seemed as though the City was slipping behind on the infrastructure. Mr. Lynn stated that Council’s obligation was to the future and, knowing there would be a $7M budget shortfall in FY17, they should take pro-active steps to address it. Responding to Mr. Lynn, Mrs. Donna Mitchell, Controller/Treasurer, stated that, according to the current projections, a five (5) cent increase in the property tax rate this year would result in revenue of approximately $1.5M and would eliminate the need for future tax increases until 2017. Mrs. Mitchell stated that without such an increase, according to the forecast, a nine (9) cent tax increase would be necessary over the next five (5) years. She noted that the projections did not consider inflation and, if the funds were set aside, a greater savings could be achieved. Mr. Lynn moved to amend the motion to propose a five (5) cent increase in the property tax rate, which would have the resultant effect of staving off any other future tax increases until at least 2017. It would also have the practical effect of addressing capital improvement projects and stopping the cycle of deferred maintenance that had kept the tax rate artificially low throughout the last decade. The motion was seconded by Mr. Slavin. Mrs. Williams, the maker of the motion, declined to amend her motion. Mrs. Williams questioned how many pre-emptive taxes were spent for purposes for which they were not intended since 2002 because the City got into a bind and then had to raise taxes anyway. Responding, Mrs. Mitchell stated that she did not recall any tax increases caused by a bind. She

CITY COUNCIL MEETING OF JUNE 24, 2013 PAGE 23 noted that taxes had been raised through budget proceedings and there were some assessments when the whole tax rate was not rolled back. She noted that there was an issue at one time with the electric rates. Noting that the projections were predicated on the same level of spending, Mrs. Williams asked why a reduction in spending was not being considered. Mrs. Mitchell stated that Council was advised during the budget review on June 6, 2013 that either additional revenue or a reduction in services would be required to balance the budget. Mr. Scott Koenig, City Manager, stated that the five (5) year forecast was based on the current level of employees, current services, a one percent (1%) growth in revenues, and the five (5) year capital plan. He said moving forward in the five (5) year budget it was the status quo that they develop a $7M gap. Mrs. Williams asked if elimination of overtime, except in grave circumstances, would reduce the gap. Mr. Koenig responded that the projections included the historical values of overtime going forward. Mrs. Williams noted that overtime increases each year and, before raising taxes and rates, the City should to look in-house to cut expenses. Mr. Hutchison felt it was necessary to look at the total operation of the City and review every department to see what the five (5) year projections were. He noted that he could not support a tax increase until all departments were reviewed. Mr. Hare, noted that the balanced budget presented included no fee or rate increases, reduced electric rates, and no tax increase. He felt it was possible to recover some revenue through growth in economic development in Kent County. Mr. Hare reminded members that they continue to support the Downtown Dover Partnership in the amount of $200,000 per year without any accountability or request for future accountability. He reiterated the comments of others that departments should be reviewed for savings and managers and department heads should be held accountable. Mr. Hare noted that the full-time Mayor’s responsibilities are economic development, public relations, and lobbying the legislature. All of those responsibilities had been taken away from the Mayor and there were three (3) people doing economic development, a public relations person, and the Mayor may still lobby the legislature even though it is not in his job description. He reminded members that, although the proposed tax increase may mean $100 to a household, it is $40,000 or more to Dover Downs and $10,000 or more to Dover Air Force Base and some of the other bigger businesses in town, without notice. Mr. Slavin agreed that looking in-house for savings was a good idea and commended Council for doing that over the past several years, noting the reduction in the number of positions and the scrutiny that the budget had received. He was concerned that the only expenses left to cut were personnel and union contracts or reduce the number of employees, who would be inordinately burdened. He felt that the assumptions were high risk with low return and would result in deferred infrastructure and maintenance. Responding to Mr. Lynn, Mr. Koenig stated that the FOP contract had been signed, the IUE contract had been prepared to be signed, negotiations were ongoing for the IBEW contract (represents 35 employees), and the AFSCME contract (represents 39 employees) discussions would be starting soon. He stated that there were approximately 40 non-bargaining employees. Mr. Lynn reminded members that only the salaries of the 40 non-bargaining employees could be addressed without the interference of a labor union. Mr. Koenig noted that those savings could be realized through a hiring freeze, leaving the currently vacant positions unfilled.

CITY COUNCIL MEETING OF JUNE 24, 2013 PAGE 24 Mrs. Williams asked if the labor contracts dictated the use of overtime. Mr. Koenig responded that overtime was a managerial right; however, the contracts do not specify how much overtime an employee will receive. Mr. Hare reminded members that the Downtown Dover Partnership (DDP) advised Council last year that they would not need funding this year. At that time, Mr. Koenig recommended that economic development be reassigned to the Mayor and the need for three (3) staff people could be eliminated when the DDP hired their executive director. Responding to Mr. Lynn, Mrs. Mitchell stated that overtime through April was $843,000 and some employees receive compensatory time instead of overtime. She noted that the departments with large amounts of overtime are police, civilian law enforcement, electric, water/wastewater, and fire dispatchers. Mr. Lynn noted that in 2017 there would be a $7M budget deficit and, at the current rate, $800,000 of it would be for overtime and $6.2M for other expenses. Mr. Koenig noted that $400,000 of the $800,000 in overtime could be attributed to the Police Department, stating that no member of Council had suggested that the police be asked not to respond when called. He also noted that the fire dispatcher overtime could be attributed to position vacancies. Mr. Koenig stated that the level of service that the residents of Dover enjoy requires some overtime. Mr. Lynn stated that a tax increase was discussed in open session on May 27, 2013 and was followed by a Delaware State News article stating that the majority of Council members agreed with a three (3) cent increase in the property tax rate. He stated that it had been part of the budget discussions all along. On a call for the question, the motion to set the 2013/2014 property tax rate at .3378 cents per $100 of assessed value was carried by a roll call vote of six (6) yes (Dixon, Perza, Williams, Hare, Hutchison, and Bonar), two (2) no (Lynn and Slavin), and one absent (Anderson). Electric Rate Members were provided the proposed electric rates and tariffs prepared by Mr. Ted Kelly of Burns & McDonnell. Staff recommended approval of those electric rates and tariffs. Mr. Hare moved for approval of rates and tariffs, as provided, seconded by Mr. Hutchison and carried by a unanimous roll call vote (Anderson absent). FIRST READING - PROPOSED ORDINANCE #2013-08 Council President Bonar reminded the public that copies of the proposed ordinance were available at the entrance of the Council Chambers or can be obtained from the City Clerk's Office. Final action by Council on the proposed ordinance will take place during the Council Meeting of July 8, 2013. Mr. Lynn, Chair of the Legislative, Finance, and Administration Committee, advised members that this amendment would remove the requirement for offenders residing or employed within 500 feet of a day care center at the time of adoption of the ordinance (April 9, 2012) to move or resign their employment. He noted that the Committee recommended adoption of the ordinance.

CITY COUNCIL MEETING OF JUNE 24, 2013 PAGE 25 Responding to Mrs. Williams, Chief James Hosfelt stated that they currently manage 253 sex offenders and this amendment would affect only two (2) people who would remain in place within 500 feet of a daycare. He noted that once they move, the grandfather clause would no longer apply to them. In accordance with Section 1-9 of the Dover Code, Council acknowledged the First Reading of the Ordinance Amendment as read by the City Clerk, by title only, as follows: CHAPTER 70 - OFFENSES AND MISCELLANEOUS PROVISIONS, SECTION 70-7 - REGISTERED SEXUAL OFFENDERS, SUBSECTION (B) - PROHIBITION ON RESIDENCY AND EMPLOYMENTS FINAL READING - PROPOSED ORDINANCE #2013-09 The First Reading of the proposed ordinance was accomplished during the Council Meeting of June 10, 2013. Proposed Ordinance #2013-09 - 2013/2014 City of Dover Budget Ordinances Mr. Hare moved that the Final Reading of the proposed ordinance be acknowledged by title only, seconded by Mr. Hutchison and carried by a roll call vote of five (5) yes (Dixon, Williams, Hare, Hutchison, and Bonar), three (3) no (Lynn, Perza, and Slavin), and one (1) absent (Anderson). Mr. Scott Koenig, City Manager, reminded members that the City’s budget was approximately $134M, the General Fund operating and capital budgets were just under $37M, the total number of full-time employees had been reduced from 350 to 347 and part-time employees had increased from 36 to 38, there were no fee increases in the baseline budget, no water and sewer fee increases in the baseline budget, and an average of 11% reduction in the electric rates. By motion of Mr. Hare, seconded by Mrs. Williams, Council, by a roll call vote of six (6) yes (Dixon, Perza, Williams, Hare, Hutchison, and Bonar), two (2) no (Lynn and Slavin), and one (1) absent (Anderson), adopted Ordinance #2013-09 (Exhibit #3). COUNCIL MEMBERS’ ANNOUNCEMENTS Mrs. Williams thanked the Mayor, Council, and City employees for the flowers she received while she was in the hospital. Council President Bonar stated that he enjoyed the spirited discussion regarding the budget and the tax rate and felt that Council members exercised a great deal of integrity. He noted that a lot of examination and research would be necessary to address the $7M shortfall in the out-years. Council President Bonar wished Councilmen Hutchison and Hare happy birthdays. Noting that the Firefly Music Festival was held the prior weekend, Mr. Hutchison commended all of the City staff members who were involved for the jobs they did. He stated that he had heard nothing but good things about the weekend.

CITY COUNCIL MEETING OF JUNE 24, 2013 PAGE 26 By unanimous consent, the meeting adjourned at 8:59 p.m. TRACI A. McDOWELL CITY CLERK All orders, ordinances, and resolutions adopted by City Council during their Regular Meeting of June 24, 2013, are hereby approved. CARLETON E. CAREY, SR. MAYOR /TM S:\ClerksOffice\Agendas&Minutes\Council-Minutes\2005\08-22-2005 Council.wpd Exhibits Exhibit #1 - Amended and Restated Water and Sewer Bond Resolution Providing for the Issuance by the City of Dover of Water and Sewer Revenue Bonds and Related Matters Exhibit #2 - Resolution Authorizing the Sale of Up to $6,500,000 Water and Sewer Revenue Bonds of the City of Dover Exhibit #3 - Ordinance #2013-09 - 2013/2014 City of Dover Budget Ordinances

EXHIBIT #1 Regular Council Meeting of 06/24/2013

EXHIBIT #2 Regular Council Meeting of 06/24/2013

EXHIBIT #3 Regular Council Meeting of 06/24/2013 CITY OF DOVER ORDINANCE # 2013‐09 2013‐2014 BUDGET ORDINANCES GENERAL FUND REVENUES AND BUDGET FOR 2013‐2014 BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE CITY OF DOVER, IN COUNCIL MET: The amount hereinafter named aggregating Thirty Nine Million Seven Hundred Thirty Three Thousand Two Hundred dollars ($39,733,200) or so much thereof as may be necessary are hereby appropriated from current revenues and other funds for the use by several departments of the Municipal Government for the fiscal year beginning July 1, 2013 and ending June 30, 2014: 2012/13 2013/14 REVISED BUDGET BEGINNING BALANCE $ 3,752,200 $ 3,455,200 REVENUES FINES AND POLICE REVENUE 668,000 666,000 INVESTMENT INCOME 75,000 75,000 LIBRARY REVENUES 66,200 66,600 KENT COUNTY BOOK REIMBURSEMENT 405,900 400,000 BUSINESS LICENSES 1,455,000 1,460,000 PERMITS AND OTHER LICENSES 1,053,300 1,167,500 MISCELLANEOUS CHARGES 70,900 63,300 POLICE EXTRA DUTY 636,100 650,000 PROPERTY TAXES 11,039,200 11,120,000 BID REVENUE 51,600 49,500 RECREATION REVENUE 130,000 133,000 FRANCHISE FEE 600,000 606,200 TRASH FEES 2,676,500 2,676,500 RENT REVENUE ‐ GARRISON FARM 117,200 118,500 COURT OF CHANCERY FEES 807,200 863,200 REVENUES SUBTOTAL 19,852,100 20,115,300 INTERFUND SERVICE RECEIPTS INTRAFUND SERVICE RECEIPTS WATER/WASTEWATER 1,045,800 1,134,900 INTRAFUND SERVICE RECEIPTS ELECTRIC 3,177,100 3,319,400 INTERFUND SERVICE RECEIPTS SUBTOTAL 4,222,900 4,454,300 GRANTS POLICE RELATED 112,100 110,000 POLICE PENSION GRANT 500,000 500,000 GREEN ENERGY GRANT 98,500 98,500 MISCELLANEOUS GRANTS 25,000 25,000 GRANTS SUBTOTAL 735,600 733,500 TRANSFERS FROM TRANSFER TAX 1,370,000 1,315,500 MUNICIPAL STREET AID 527,400 527,400 CIVIL TRAFFIC PENALTIES 350,000 600,000 WATER/WASTEWATER 500,000 500,000 ELECTRIC 8,000,000 8,000,000 OTHER RESERVES 11,000 32,000 TRANSFERS FROM SUBTOTAL 10,758,400 10,974,900 TOTAL REVENUES 35,569,000 36,278,000 TOTALS $ 39,321,200 $ 39,733,200

2013‐2014 BUDGET ORDINANCES ‐ CONTINUED GENERAL FUND ‐ EXPENDITURES AND BUDGET BALANCE FOR 2013‐2014 2012/13 2013/14 DEPARTMENT EXPENSES REVISED BUDGET CITY CLERK $ 326,900 $ 334,400 COUNCIL 114,200 107,800 TAX ASSESSOR 187,500 198,300 FIRE 645,200 692,100 GROUNDS MAINTENANCE 980,400 948,500 LIBRARY 1,225,400 1,330,400 RECREATION 674,900 708,200 LIFE SAFETY 451,800 468,200 CODE INFORCEMENT 323,100 377,100 PLANNING 416,100 444,800 INSPECTIONS 577,100 540,300 ECONOMIC DEVELOPMENT 231,100 215,200 POLICE 13,431,900 13,571,800 POLICE EXTRA DUTY 748,200 760,000 STREETS 772,200 603,700 SANITATION 2,072,000 2,153,800 CITY MANAGER 420,000 457,300 INFORMATION TECHNOLOGY 633,300 660,500 FINANCE 879,500 906,500 PUBLIC SERVICES ‐ ADMINISTRATION 401,200 425,800 FACILITIES MANAGEMENT 660,600 632,600 CENTRAL SERVICES 578,700 517,600 FLEET MAINTENANCE 678,500 720,700 CUSTOMER SERVICES 866,900 1,109,400 HUMAN RESOURCES 310,800 334,300 MAYOR 82,400 83,300 DEPARTMENT SUBTOTALS 28,689,900 29,302,600 OTHER EXPENSES DEBT SERVICE 474,200 557,300 CONTRIBUTION TO DDP 180,000 162,400 MISCELLANEOUS GRANT RELATED EXPENSES 25,000 25,000 INSURANCE 600,000 658,900 RETIREES HEALTH CARE 1,620,600 1,636,500 OTHER EMPLOYMENT EXPENSES 94,700 400,000 PENSION UNFUNDED LIABILITY 1,693,500 1,159,100 POLICE PENSION FUND ‐ STATE GRANT 500,000 500,000 POLICE PENSION FUND ‐ UNFUNDED LIABILITY 495,000 307,400 UNCOLLECTIBLES ‐ TRASH AND OTHER 10,000 10,000 STREET LIGHTS 869,700 836,000 OTHER EXPENSE SUBTOTAL 6,562,700 6,252,600 TRANSFERS TRANSFER TO CAPITAL FUND ‐ PROJECTS 613,400 1,278,300 TRANSFERS SUBTOTAL 613,400 1,278,300 TOTAL EXPENDITURES 35,866,000 36,833,500 CURRENT YEAR BALANCE 3,455,200 2,899,700 TOTALS $ 39,321,200 $ 39,733,200 The City Manager is hereby authorized, without further approval of the City Council, to make interdepartmental transfers of up to five percent of the amount hereinafter appropriated to any department with the exception of any transfers prohibited by City Procedure #F306. ADOPTED: June 24, 2013

2013‐2014 BUDGET ORDINANCES ‐ CONTINUED GENERAL FUND CONTINGENCY CASH RECEIPTS/REVENUES AND BUDGET FOR 2013‐2014 BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE CITY OF DOVER, IN COUNCIL MET: The amount hereinafter named aggregating Seven Hundred Forty Four Thousand Six Hundred dollars ($744,600) or so much thereof as may be necessary are hereby appropriated from current revenues and other funds for the use by several departments of the Municipal Government for the fiscal year beginning July 1, 2013 and ending June 30, 2014: CASH RECEIPTS 2012/13 2013/14 REVISED BUDGET BEGINNING BALANCE $ 721,200 $ 732,100 INTEREST EARNED 10,900 12,500 TOTALS $ 732,100 $ 744,600 EXPENSE SUMMARY 2012/13 2013/14 REVISED BUDGET TRANSFER TO OPERATING ACCOUNT $ ‐ $ 21,000 CARRY FORWARD TO NEXT YEAR $ 732,100 $ 723,600 TOTALS $ 732,100 $ 744,600 The City Manager is hereby authorized, without further approval of the City Council, to make interdepartmental transfers of up to five percent of the amount hereinafter appropriated to any department with the exception of any transfers prohibited by City Procedure #F306. ADOPTED: June 24, 2013

2013‐2014 BUDGET ORDINANCES ‐ CONTINUED GOVERNMENTAL CAPITAL PROJECTS FUND REVENUES AND BUDGET FOR 2013‐2014 BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE CITY OF DOVER, IN COUNCIL MET: The amount hereinafter named aggregating One Million Five Hundred Fifty Four Thousand Eight Hundred dollars ($1,554,800) or so much thereof as may be necessary are hereby appropriated from current revenues and other funds for the use by several departments of the Municipal Government for the fiscal year beginning July 2,2013 and ending June 30, 2014: REVENUES 2012/13 2013/14 REVISED BUDGET BEGINNING BALANCE $ 156,000 $ 166,500 REVENUES STATE GRANTS ‐ OTHER 158,000 15,000 BOND PROCEEDS ‐ STREET PROGRAM 2,000,000 ‐ INCOME FROM SALE OF ASSETS 43,000 ‐ POLICE GRANTS 33,800 ‐ TRANSFER FROM GENERAL FUND FOR PROJECTS 613,400 1,278,300 TRANSFER FROM PARKLAND RESERVE ‐ 95,000 TRANSFER FROM FUTURE CAPACITY RESERVE 2,000,000 ‐ SUBTOTAL PROJECT RECEIPTS 4,848,200 1,388,300 STATE GRANTS ‐ LIBRARY 1,746,000 ‐ TRANSFER FROM THE LIBRARY FOUNDATION 71,000 ‐ INCOME FROM SALE OF ASSETS ‐ LIBRARY 1,200,000 ‐ CONSTRUCTION LOAN FOR LIBRARY 648,500 ‐ KENT COUNTY CONTRIBUTIONS 250,000 ‐ DEMEC GRANT 166,700 ‐ FRIENDS OF THE LIBRARY DONATION 102,400 ‐ SUBTOTAL LIBRARY PROJECT RECEIPTS 4,184,600 ‐ TOTAL REVENUES 9,032,800 1,388,300 TOTAL BEGINNING BALANCE AND REVENUES $ 9,188,800 $ 1,554,800 EXPENSE SUMMARY 2012/13 2013/14 DEPARTMENT EXPENSES REVISED BUDGET FIRE $ 238,500 $ 238,500 GROUNDS MAINTENANCE 112,000 50,100 LIBRARY 4,089,100 ‐ RECREATION 30,000 95,000 CODE ENFORCEMENT ‐ 30,000 POLICE 217,000 257,300 STREETS 3,558,700 251,500 SANITATION 150,000 402,100 INFORMATION TECHNOLOGY 107,000 7,000 FACILITIES MAINTENANCE 395,000 17,800 PROCUREMENT & INVENTORY ‐ 55,000 MAYOR 33,000 ‐ DEPARTMENT SUBTOTAL 8,930,300 1,404,300 BOND ISSUANCE COSTS 32,000 ‐ TRANSFER TO COMMUNITY TRANSP FUND 60,000 ‐ CURRENT YEAR BALANCE 166,500 150,500 TOTALS $ 9,188,800 $ 1,554,800 The City Manager is hereby authorized, without further approval of the City Council, to make interdepartmental transfers of up to five percent of the amount hereinafter appropriated to any department with the exception of any transfers prohibited by City Procedure #F306. ADOPTED: June 24, 2013

2013‐2014 BUDGET ORDINANCES ‐ CONTINUED GENERAL CAPITAL ASSET RESERVE CASH RECEIPTS/REVENUES AND BUDGET FOR 2013‐2014 BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE CITY OF DOVER, IN COUNCIL MET: The amount hereinafter named aggregating Five Hundred Twelve Thousand dollars ($512,000) or so much thereof as may be necessary are hereby appropriated from current revenues and other funds for the use by several departments of the Municipal Government for the fiscal year beginning July 1, 2013 and ending June 30, 2014: CASH RECEIPTS 2012/13 2013/14 REVISED BUDGET BEGINNING BALANCE $ 498,500 $ 504,000 RECEIPTS INTEREST EARNINGS 5,500 8,000 TOTAL RECEIPTS 5,500 8,000 TOTALS $ 504,000 $ 512,000 EXPENSE SUMMARY 2012/13 2013/14 REVISED BUDGET CARRY FORWARD TO NEXT YEAR $ 504,000 $ 512,000 TOTALS $ 504,000 $ 512,000 The City Manager is hereby authorized, without further approval of the City Council, to make interdepartmental transfers of up to five percent of the amount hereinafter appropriated to any department with the exception of any transfers prohibited by City Procedure #F306. ADOPTED: June 24, 2013

2013‐2014 BUDGET ORDINANCES ‐ CONTINUED PARKLAND/RECREATION RESERVE CASH RECEIPTS/REVENUES AND BUDGET FOR 2013‐2014 BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE CITY OF DOVER, IN COUNCIL MET: The amount hereinafter named aggregating Two Hundred FiveThousand dollars ($205,000) or so much thereof as may be necessary are hereby appropriated from current revenues and other funds for the use by several departments of the Municipal Government for the fiscal year beginning July 1, 2013 and ending June 30, 2014: OPERATING REVENUES 2012/13 2013/14 REVISED BUDGET PRIOR YEAR BALANCE $ 199,300 $ 202,500 INTEREST INCOME 3,200 2,500 TOTALS $ 202,500 $ 205,000 OPERATING EXPENSES 2012/13 2013/14 REVISED BUDGET TRANSFER TO CAPITAL PROJECTS FUND $ ‐ $ 95,000 CURRENT YEAR BALANCE 202,500 110,000 TOTALS $ 202,500 $ 205,000 The City Manager is hereby authorized, without further approval of the City Council, to make interdepartmental transfers of up to five percent of the amount hereinafter appropriated to any department with the exception of any transfers prohibited by City Procedure #F306. ADOPTED: June 24, 2013

2013‐2014 BUDGET ORDINANCES ‐ CONTINUED WATER/WASTEWATER FUND REVENUES AND BUDGET FOR 2013‐2014 BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE CITY OF DOVER, IN COUNCIL MET: The amount hereinafter named aggregating Fifteen Million One Hundred Twenty Two Thousand Two Hunded dollars ($15,122,200) or so much thereof as may be necessary are hereby appropriated from current revenues and other funds for the use by several departments of the Municipal Government for the fiscal year beginning July 1, 2013 and ending June 30, 2014: 2012/13 2013/14 REVISED BUDGET BEGINNING BALANCE ‐ WATER $ 1,075,800 $ 770,800 BEGINNING BALANCE ‐ WASTEWATER 991,100 412,600 BEGINNING BALANCE ‐ KCSA (626,400) 141,600 TOTAL BEGINNING BALANCES 1,440,500 1,325,000 BASE REVENUE WATER FEES 4,730,700 4,730,700 WASTEWATER FEES 3,642,700 3,642,700 WASTEWATER ADJUSTMENT FEES 2,980,400 2,980,300 GROUNDWATER INFLOW ADJUSTMENT 1,324,600 1,324,600 WATER TANK SPACE LEASING 313,500 333,800 SEWER IMPACT FEES 380,000 323,000 WATER IMPACT FEES 350,000 357,000 INTEREST ‐ WATER 7,400 9,100 INTEREST ‐ WASTEWATER 11,500 14,000 MISCELLANEOUS SERVICE FEE 81,400 82,000 TOTAL REVENUES 13,822,200 13,797,200 TOTAL BEGINNING BALANCES AND REVENUES $ 15,262,700 $ 15,122,200

2013‐2014 BUDGET ORDINANCES ‐ CONTINUED WATER/WASTEWATER FUND ‐ EXPENDITURES AND BUDGET BALANCE FOR 2013‐2014 2012/13 2013/14 DIRECT EXPENSES REVISED BUDGET ENGINEERING & INSPECTION $ 601,900 $ 664,400 WATER CONSTRUCTION 353,200 351,400 WATER DEPARTMENT 415,000 433,900 WATER TREATMENT PLANT 1,535,400 1,501,800 WASTEWATER DEPARTMENT 997,000 945,100 DIRECT EXPENDITURE SUBTOTAL 3,902,500 3,896,600 OTHER EXPENSES DEBT SERVICE ‐ WATER 438,100 403,800 DEBT SERVICE ‐ WASTEWATER 636,300 615,700 RETIREES HEALTH CARE 220,000 200,000 OTHER EMPLOYMENT EXPENSES 15,400 25,000 PENSION UNFUNDED LIABILITY 509,800 339,400 KENT COUNTY TREATMENT CHARGE 3,537,000 3,524,800 INTRAFUND SERVICE FEES 1,176,600 1,233,400 UNCOLLECTIBLES 5,000 ‐ INVENTORY/FIXED ASSET WRITEOFFS 5,000 ‐ OTHER EXPENSES SUBTOTAL 6,543,200 6,342,100 TRANSFER TO GENERAL FUND FROM WATER 250,000 250,000 GENERAL FUND FROM WASTEWATER 250,000 250,000 WATER IMP AND EXT 1,700,000 1,200,000 WASTEWATER IMP AND EXT 1,200,000 1,330,000 CAPITAL ASSET RESERVE WATER 70,000 ‐ CAPITAL ASSET RESERVE WASTEWATER 22,000 ‐ TRANSFER TO SUBTOTAL 3,492,000 3,030,000 TOTAL EXPENSES 13,937,700 13,268,700 CURRENT YEAR BALANCES CURRENT YEAR BALANCE WATER 770,800 1,056,400 CURRENT YEAR BALANCE WASTEWATER 412,600 797,100 CURRENT YEAR BALANCE KCSA 141,600 ‐ CURRENT YEAR BALANCE SUBTOTALS 1,325,000 1,853,500 TOTAL CURRENT YEAR BALANCES AND EXPENSES $ 15,262,700 $ 15,122,200 The City Manager is hereby authorized, without further approval of the City Council, to make interdepartmental transfers of up to five percent of the amount hereinafter appropriated to any department with the exception of any transfers prohibited by City Procedure #F306. ADOPTED: June 24, 2013

2013‐2014 BUDGET ORDINANCES ‐ CONTINUED WATER/WASTEWATER CONTINGENCY RESERVE CASH RECEIPTS/REVENUES AND BUDGET FOR 2013‐2014 BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE CITY OF DOVER, IN COUNCIL MET: The amount hereinafter named aggregating Two Hundred Ninety Seven Thousand One Hundred dollars ($297,100) or so much thereof as may be necessary are hereby appropriated from current revenues and other funds for the use by several departments of the Municipal Government for the fiscal year beginning July 1, 2013 and ending June 30, 2014: CASH RECEIPTS 2012/13 2013/14 REVISED BUDGET BEGINNING BALANCE ‐ WATER $ 102,100 $ 103,800 BEGINNING BALANCE ‐ WASTEWATER $ 185,200 $ 188,300 TOTAL BEGINNING BALANCES $ 287,300 $ 292,100 RECEIPTS INTEREST EARNINGS 4,800 5,000 TOTAL RECEIPTS 4,800 5,000 TOTALS $ 292,100 $ 297,100 EXPENSE SUMMARY 2012/13 2013/14 EXPENSES REVISED BUDGET TRANSFER TO OPERATING FUND/RESERVES $ ‐ $ ‐ TOTAL EXPENSES ‐ ‐ CURRENT YEAR BALANCE ‐ WATER 103,800 105,600 CURRENT YEAR BALANCE ‐ WASTEWATER 188,300 191,500 CURRENT YEAR BALANCE SUBTOTALS 292,100 297,100 TOTAL EXPENSES AND CURRENT YEAR BALANCES $ 292,100 $ 297,100 The City Manager is hereby authorized, without further approval of the City Council, to make interdepartmental transfers of up to five percent of the amount hereinafter appropriated to any department with the exception of any transfers prohibited by City Procedure #F306. ADOPTED: June 24, 2013

2013‐2014 BUDGET ORDINANCES ‐ CONTINUED WATER/WASTEWATER IMPROVEMENT & EXTENSION FUND CASH RECEIPTS/REVENUES AND BUDGET FOR 2013‐2014 BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE CITY OF DOVER, IN COUNCIL MET: The amount hereinafter named aggregating Five Million Two Hundred Twenty Five Thousand NIne Hundred dollars ($5,225,900) or so much thereof as may be necessary are hereby appropriated from current revenues and other funds for the use by several departments of the Municipal Government for the fiscal year beginning July 1, 2013 and ending June 30, 2014: CASH RECEIPTS 2012/13 2013/14 REVISED BUDGET PRIOR YEAR BALANCE ‐ WATER $ 3,811,200 $ 1,620,000 PRIOR YEAR BALANCE ‐ WASTEWATER 2,641,000 660,900 TOTAL BEGINNING BALANCES 6,452,200 2,280,900 RECEIPTS BOND PROCEEDS ‐ WATER ‐ 2013 ISSUE 2,000,000 ‐ BOND PROCEEDS ‐ WASTEWATER ‐ 2013 ISSUE 2,000,000 ‐ STATE LOAN‐WATER 2010 ISSUE 142,700 ‐ STATE LOAN‐WASTEWATER 2011 ISSUE 494,500 ‐ TRANS FROM OPERATING FUND FOR WATER 1,700,000 1,200,000 TRANS FROM OPERATING FUND FOR WASTEWATER 1,200,000 1,330,000 TRANSFER FROM WATER IMPACT FEE RESERVE ‐ 390,000 TRANSFER FROM WASTEWATER IMPACT FEE RESERVE 250,000 ‐ INTEREST INCOME 25,000 25,000 TOTAL RECEIPTS 7,812,200 2,945,000 TOTALS $ 14,264,400 $ 5,225,900 EXPENSE SUMMARY 2012/13 2013/14 EXPENSES REVISED BUDGET WATER $ 5,971,600 $ 1,476,800 WASTEWATER 5,922,500 1,251,000 WATER TREATMENT PLANT 29,200 ‐ WATER CONSTRUCTION 31,000 90,000 ENGINEERING & INSPECTION 29,200 ‐ TOTAL EXPENSES 11,983,500 2,817,800 CURRENT YEAR BALANCE ‐ WATER 1,620,000 1,655,700 CURRENT YEAR BALANCE ‐ WASTEWATER 660,900 752,400 CURRENT YEAR BALANCE SUBTOTALS 2,280,900 2,408,100 TOTALS $ 14,264,400 $ 5,225,900 The City Manager is hereby authorized, without further approval of the City Council, to make interdepartmental transfers of up to five percent of the amount hereinafter appropriated to any department with the exception of any transfers prohibited by City Procedure #F306. ADOPTED: June 24, 2013

2013‐2014 BUDGET ORDINANCES ‐ CONTINUED WATER/WASTEWATER CAPITAL ASSET RESERVE CASH RECEIPTS/REVENUES AND BUDGET FOR 2013‐2014 BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE CITY OF DOVER, IN COUNCIL MET: The amount hereinafter named aggregating One Million Twenty Five Thousand Three Hundred dollars ($1,025,300) or so much thereof as may be necessary are hereby appropriated from current revenues and other funds for the use by several departments of the Municipal Government for the fiscal year beginning July 1, 2013 and ending June 30, 2014: CASH RECEIPTS 2012/13 2013/14 REVISED BUDGET BEGINNING BALANCE ‐ WATER $ 427,100 $ 504,400 BEGINNING BALANCE ‐ WASTEWATER 473,600 503,700 TOTAL BEGINNING BALANCES 900,700 1,008,100 RECEIPTS INTEREST EARNINGS ‐ WATER 7,300 8,600 INTEREST EARNINGS ‐ WASTEWATER 8,100 8,600 TRANSFER FROM WATER 70,000 ‐ TRANSFER FROM WASTEWATER 22,000 ‐ TOTAL RECEIPTS 107,400 17,200 TOTALS $ 1,008,100 $ 1,025,300 EXPENSE SUMMARY 2012/13 2013/14 REVISED BUDGET CURRENT YEAR BALANCE ‐ WATER $ 504,400 $ 513,000 CURRENT YEAR BALANCE ‐ WASTEWATER 503,700 512,300 CURRENT YEAR BALANCE SUBTOTALS 1,008,100 1,025,300 TOTALS $ 1,008,100 $ 1,025,300 The City Manager is hereby authorized, without further approval of the City Council, to make interdepartmental transfers of up to five percent of the amount hereinafter appropriated to any department with the exception of any transfers prohibited by City Procedure #F306. ADOPTED: June 24, 2013

2013‐2014 BUDGET ORDINANCES ‐ CONTINUED ELECTRIC REVENUE FUND REVENUES AND BUDGET FOR 2013‐2014 BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE CITY OF DOVER, IN COUNCIL MET: The amount hereinafter named aggregating Ninety Million One Hundred Thirty Eight Thousand dollars ($90,138,000) or so much thereof as may be necessary are hereby appropriated from current revenues and other funds for the use by several departments of the Municipal Government for the fiscal year beginning July 1, 2013 and ending June 30, 2014: 2012/13 2013/14 REVISED BUDGET BEGINNING BALANCE $ 14,567,100 $ 7,152,400 BASE REVENUE DIRECT SALES TO CUSTOMER 87,519,500 76,286,700 UTILITY TAX 1,498,900 1,492,200 MISCELLANEOUS REVENUE 985,700 602,000 RENT REVENUE 200,000 251,000 GREEN ENERGY 129,000 135,800 INTEREST EARNINGS 107,800 119,400 TRANSFER FROM RATE STABILIZATION 5,400,000 4,000,000 INTRAFUND SERVICE RECEIPTS WATER/WASTEWATER 130,800 98,500 TOTAL REVENUES 95,971,700 82,985,600 TOTALS $ 110,538,800 $ 90,138,000

2013‐2014 BUDGET ORDINANCES ‐ CONTINUED ELECTRIC REVENUE FUND ‐ EXPENDITURES & BUDGET BALANCE FOR 2013‐2014 2012/13 2013/14 EXPENSES REVISED BUDGET POWER SUPPLY $ 37,701,000 $ 23,832,000 SOLAR ENERGY 1,587,600 1,565,800 SOLAR RENEWAL ENERGY CREDITS 351,600 300,000 POWER SUPPLY MANAGEMENT 996,000 996,000 PJM CHARGES ‐ ENERGY 5,697,700 12,812,900 PJM CHARGES ‐ TRANSMISSION & FEES 6,100,700 4,740,000 CAPACITY CHARGES 11,817,200 15,787,200 SUB‐TOTAL POWER SUPPLY 64,251,800 60,033,900 PLANT OPERATIONS 5,914,900 6,015,800 GENERATIONS FUELS 948,800 ‐ PJM SPOT MARKET ENERGY (1,865,600) (230,500) PJM CREDITS (488,400) (397,000) CAPACITY CREDITS (14,318,600) (15,079,800) GENERATION SUBTOTAL (9,808,900) (9,691,500) POWER SUPPLY & GENERATION SUBTOTAL 54,442,900 50,342,400 DIRECT EXPENDITURES TRANSMISSION/DISTRIBUTION 3,233,700 3,302,500 ELECTRICAL ENGINEERING 1,171,300 1,192,200 ADMINISTRATION 501,200 597,000 METER READING 212,500 220,300 SYSTEMS OPERATIONS 526,300 543,600 DIRECT EXPENDITURE SUBTOTALS 5,645,000 5,855,600 OTHER EXPENSES: UTILITY TAX 1,498,900 1,492,200 ALLOW FOR UNCOLLECTIBLES 150,000 200,000 CONTRACTUAL SERVICES ‐ RFP'S 190,000 100,000 RETIREES HEALTH CARE 696,500 513,300 OTHER EMPLOYMENT EXPENSES 149,200 150,000 TRANSFER TO PENSION UNFUNDED LIABILITY 7,274,200 1,314,200 OPEB UNFUNDED LIABILITY ‐ 975,700 GREEN ENERGY PAYMENT TO DEMEC 129,000 135,800 INTRAFUND SERVICE FEES 3,177,100 3,319,400 INTEREST ON DEPOSITS 35,000 27,000 INVENTORY WRITE OFFS 175,000 ‐ TRANSFER TO WORKER'S COMPENSATION FUND 500,000 ‐ DEBT SERVICE 3,323,600 3,301,900 OTHER EXPENSES SUBTOTAL 17,298,500 11,529,500 TRANSFER TO IMPROVEMENT & EXTENSION 3,500,000 5,448,600 GENERAL FUND 8,000,000 8,000,000 FUTURE CAPACITY RESERVE 2,100,000 ‐ RATE STABILIZATION RESERVE 12,400,000 ‐ TRANSFER TO SUBTOTAL 26,000,000 13,448,600 TOTAL EXPENSES 103,386,400 81,176,100 CURRENT YEAR BALANCE 7,152,400 8,961,900 TOTALS $ 110,538,800 $ 90,138,000 The City Manager is hereby authorized, without further approval of the City Council, to make interdepartmental transfers of up to five percent of the amount hereinafter appropriated to any department with the exception of any transfers prohibited by City Procedure #F306. ADOPTED: June 24, 2013

2013‐2014 BUDGET ORDINANCES ‐ CONTINUED ELECTRIC UTILITY CONTINGENCY RESERVE CASH RECEIPTS/REVENUES AND BUDGET FOR 2013‐2014 BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE CITY OF DOVER, IN COUNCIL MET: The amount hereinafter named aggregating Eight Hundred Twenty Six Thousand Five Hundred dollars ($826,500) or so much thereof as may be necessary are hereby appropriated from current revenues and other funds for the use by several departments of the Municipal Government for the fiscal year beginning July 1, 2013 and ending June 30, 2014: CASH RECEIPTS 2012/13 2013/14 REVISED BUDGET BEGINNING BALANCE $ 1,070,800 $ 814,300 RECEIPTS INTEREST EARNINGS 16,100 12,200 TOTAL RECEIPTS 16,100 12,200 TOTALS $ 1,086,900 $ 826,500 EXPENSE SUMMARY 2012/13 2013/14 EXPENSES REVISED BUDGET TRANSFER TO INSURANCE STABILIZATION RESERVE 272,600 ‐ TOTAL EXPENSES 272,600 ‐ CURRENT YEAR BALANCE 814,300 826,500 TOTALS $ 1,086,900 $ 826,500 The City Manager is hereby authorized, without further approval of the City Council, to make interdepartmental transfers of up to five percent of the amount hereinafter appropriated to any department with the exception of any transfers prohibited by City Procedure #F306. ADOPTED: June 24, 2013

2013‐2014 BUDGET ORDINANCES ‐ CONTINUED ELECTRIC UTILITY INSURANCE STABLIZATION RESERVE SOURCES AND USE OF FUNDS FOR 2013‐2014 BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE CITY OF DOVER, IN COUNCIL MET: The amount hereinafter named aggregating Seven Hundred Thirty Nine Thousand dollars ($739,000) or so much thereof as may be necessary are hereby appropriated from current revenues and other funds for the use by several departments of the Municipal Government for the fiscal year beginning July 1, 2013 and ending June 30, 2014: CASH RECEIPTS 2012/13 2013/14 REVISED BUDGET BEGINNING BALANCE $ 337,300 $ 728,000 INTEREST EARNINGS 5,100 11,000 TRANSFER FROM ELECTRIC CONTINGENCY 272,600 ‐ TRANSFER FROM DEPRECIATION RESERVE 58,500 ‐ TRANSFER FROM FUTURE CAPACITY RESERVE 54,500 ‐ TOTALS $ 728,000 $ 739,000 EXPENSE SUMMARY 2012/13 2013/14 REVISED BUDGET TRANSFER TO ELECTRIC IMPROVEMENT & EXTENSION $ ‐ $ ‐ CURRENT YEAR BALANCE 728,000 739,000 TOTALS $ 728,000 $ 739,000 The City Manager is hereby authorized, without further approval of the City Council, to make interdepartmental transfers of up to five percent of the amount hereinafter appropriated to any department with the exception of any transfers prohibited by City Procedure #F306. ADOPTED: June 24, 2013

2013‐2014 BUDGET ORDINANCES ‐ CONTINUED ELECTRIC UTILITY RATE STABLIZATION RESERVE SOURCES AND USE OF FUNDS FOR 2013‐2014 BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE CITY OF DOVER, IN COUNCIL MET: The amount hereinafter named aggregating Seventeen Million Six Hundred Forty Four Thousand dollars ($17,644,000) or so much thereof as may be necessary are hereby appropriated from current revenues and other funds for the use by several departments of the Municipal Government for the fiscal year beginning July 1, 2013 and ending June 30, 2014: CASH RECEIPTS 2012/13 2013/14 REVISED BUDGET BEGINNING BALANCE $ 10,230,100 $ 17,383,600 TRANSFER FROM ELECTRIC REVENUE FUND 12,400,000 ‐ INTEREST EARNINGS 153,500 260,400 TOTALS $ 22,783,600 $ 17,644,000 EXPENSE SUMMARY 2012/13 2013/14 REVISED BUDGET TRANSFER TO ELECTRIC FUND $ 5,400,000 $ 4,000,000 CURRENT YEAR BALANCE 17,383,600 13,644,000 TOTALS $ 22,783,600 $ 17,644,000 The City Manager is hereby authorized, without further approval of the City Council, to make interdepartmental transfers of up to five percent of the amount hereinafter appropriated to any department with the exception of any transfers prohibited by City Procedure #F306. ADOPTED: June 24, 2013

2013‐2014 BUDGET ORDINANCES ‐ CONTINUED ELECTRIC UTILITY IMPROVEMENT AND EXTENSION FUND CASH RECEIPTS/REVENUES AND BUDGET FOR 2013‐2014 BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE CITY OF DOVER, IN COUNCIL MET: The amount hereinafter named aggregating Nine Million Four Thousand Eight Hundred dollars ($9,004,800) or so much thereof as may be necessary are hereby appropriated from current revenues and other funds for the use by several departments of the Municipal Government for the fiscal year beginning July 1, 2013 and ending June 30, 2014: CASH RECEIPTS 2012/13 2013/14 REVISED BUDGET BEGINNING BALANCE $ 3,534,600 $ 3,091,000 RECEIPTS TRANSFER FROM ELECTRIC 3,500,000 5,448,600 GENERAL SERVICE BILLING 91,100 440,000 INTEREST EARNINGS 40,700 25,200 TOTAL RECEIPTS 3,631,800 5,913,800 TOTALS $ 7,166,400 $ 9,004,800 EXPENSE SUMMARY 2012/13 2013/14 EXPENSES REVISED BUDGET ELECTRIC GENERATION $ 1,236,600 $ 2,117,800 TRANSMISSION AND DISTRIBUTION 1,232,000 1,100,000 ELECTRICAL ENGINEERING 1,606,800 2,405,800 TOTAL EXPENSES 4,075,400 5,623,600 CURRENT YEAR BALANCE 3,091,000 3,381,200 TOTALS $ 7,166,400 $ 9,004,800 The City Manager is hereby authorized, without further approval of the City Council, to make interdepartmental transfers of up to five percent of the amount hereinafter appropriated to any department with the exception of any transfers prohibited by City Procedure #F306. ADOPTED: June 24, 2013

2013‐2014 BUDGET ORDINANCES ‐ CONTINUED ELECTRIC UTILITY DEPRECIATION RESERVE SOURCES AND USE OF FUNDS FOR 2013‐2014 BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE CITY OF DOVER, IN COUNCIL MET: The amount hereinafter named aggregating Nine Million Nine Hundred Seventy Seven Thousand One Hundred dollars ($9,977,100) or so much thereof as may be necessary are hereby appropriated from current revenues and other funds for the use by several departments of the Municipal Government for the fiscal year beginning July 1, 2013 and ending June 30, 2014: CASH RECEIPTS 2012/13 2013/14 REVISED BUDGET BEGINNING BALANCE $ 9,742,100 $ 9,829,700 INTEREST EARNINGS 146,100 147,400 TOTALS $ 9,888,200 $ 9,977,100 EXPENSE SUMMARY 2012/13 2013/14 REVISED BUDGET TRANSFER TO INSURANCE STABILIATION $ 58,500 $ ‐ CURRENT YEAR BALANCE 9,829,700 9,977,100 TOTALS $ 9,888,200 $ 9,977,100 The City Manager is hereby authorized, without further approval of the City Council, to make interdepartmental transfers of up to five percent of the amount hereinafter appropriated to any department with the exception of any transfers prohibited by City Procedure #F306. ADOPTED: June 24, 2013

2013‐2014 BUDGET ORDINANCES ‐ CONTINUED ELECTRIC UTILITY FUTURE CAPACITY RESERVE SOURCES AND USE OF FUNDS FOR 2013‐2014 BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE CITY OF DOVER, IN COUNCIL MET: The amount hereinafter named aggregating Ten Million One Hundred Thrity One Thousand Four Hundred dollars ($10,131,400) or so much thereof as may be necessary are hereby appropriated from current revenues and other funds for the use by several departments of the Municipal Government for the fiscal year beginning July 1, 2013 and ending June 30, 2014: CASH RECEIPTS 2012/13 2013/14 REVISED BUDGET BEGINNING BALANCE $ 9,805,500 $ 9,989,800 TRANSFER FROM OPERATING FUND 2,100,000 ‐ INTEREST EARNINGS 138,800 141,600 TOTALS $ 12,044,300 $ 10,131,400 EXPENSE SUMMARY 2012/13 2013/14 REVISED BUDGET TRANSFER TO GENERAL FUND $ 2,000,000 $ ‐ TRANSFER TO INSURANCE STABILIZATION 54,500 ‐ CURRENT YEAR BALANCE 9,989,800 10,131,400 TOTALS $ 12,044,300 $ 10,131,400 The City Manager is hereby authorized, without further approval of the City Council, to make interdepartmental transfers of up to five percent of the amount hereinafter appropriated to any department with the exception of any transfers prohibited by City Procedure #F306. ADOPTED: June 24, 2013

2013‐2014 BUDGET ORDINANCES ‐ CONTINUED MUNICIPAL STREET AID FUND CASH RECEIPTS/REVENUES AND BUDGET FOR 2013‐2014 BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE CITY OF DOVER, IN COUNCIL MET: The amount hereinafter named aggregating Five Hundred Twenty Seven Thousand Five Hundred dollars ($527,500) or so much thereof as may be necessary are hereby appropriated from current revenues and other funds for the use by several departments of the Municipal Government for the fiscal year beginning July 1, 2013 and ending June 30, 2014: CASH RECEIPTS 2012/13 2013/14 REVISED BUDGET BEGINNING BALANCE $ 132,200 $ 100 STATE GRANT ‐ OPERATIONS 527,400 527,400 STATE GRANT‐ CAPITAL 132,200 ‐ TOTALS $ 791,800 $ 527,500 BUDGET SUMMARY 2012/13 2013/14 REVISED BUDGET TRANSFER TO GENERAL FUND ‐ OPERATIONS $ 527,400 $ 527,400 TRANSFER TO GENERAL FUND ‐ CAPITAL 264,300 ‐ CURRENT YEAR BALANCE 100 100 TOTALS $ 791,800 $ 527,500 The City Manager is hereby authorized, without further approval of the City Council, to make interdepartmental transfers of up to five percent of the amount hereinafter appropriated to any department with the exception of any transfers prohibited by City Procedure #F306. ADOPTED: June 24, 2013

2013‐2014 BUDGET ORDINANCES ‐ CONTINUED COMMUNITY TRANSPORTATION IMPROVEMENT FUND CASH RECEIPTS/REVENUES AND BUDGET FOR 2013‐2014 BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE CITY OF DOVER, IN COUNCIL MET: The amount hereinafter named aggregating Five Hundred Thousand Five Hundred dollars ($500,500) or so much thereof as may be necessary are hereby appropriated from current revenues and other funds for the use by several departments of the Municipal Government for the fiscal year beginning July 1, 2013 and ending June 30, 2014: OPERATING REVENUES 2012/13 2013/14 REVISED BUDGET PRIOR YEAR BALANCE $ 189,300 $ ‐ GRANTS REVENUE ‐ DELDOT 300,000 500,000 TRANSFER FROM GENERAL CAPITAL FUND 60,000 ‐ INTEREST INCOME 500 500 TOTALS $ 549,800 $ 500,500 OPERATING EXPENSES 2012/13 2013/14 REVISED BUDGET PROGRAM EXPENSES ‐ DELDOT $ 324,500 $ 500,000 PROGRAM EXPENSES ‐ CITY STREET PROGRAM 225,300 ‐ CURRENT YEAR BALANCE ‐ 500 TOTALS $ 549,800 $ 500,500 The City Manager is hereby authorized, without further approval of the City Council, to make interdepartmental transfers of up to five percent of the amount hereinafter appropriated to any department with the exception of any transfers prohibited by City Procedure #F306. ADOPTED: June 24, 2013

2013‐2014 BUDGET ORDINANCES ‐ CONTINUED WORKERS COMPENSATION FUND CASH RECEIPTS/REVENUES AND BUDGET FOR 2013‐2014 BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE CITY OF DOVER, IN COUNCIL MET: The amount hereinafter named aggregating One Million Seven Hundred One Thousand Nine Hundred dollars ($1,701,900) or so much thereof as may be necessary are hereby appropriated from current revenues and other funds for the use by several departments of the Municipal Government for the fiscal year beginning July 1, 2013 and ending June 30, 2014: OPERATING REVENUES 2012/13 2013/14 REVISED BUDGET PRIOR YEAR BALANCE $ 633,100 $ 1,200,600 INTEREST INCOME 25,000 10,600 PREMIUM FROM CITY 626,700 490,700 TRANSFER FROM ELECTRIC FUND 500,000 ‐ INSURANCE REFUND 4,600 ‐ TOTALS $ 1,789,400 $ 1,701,900 OPERATING EXPENSES 2012/13 2013/14 REVISED BUDGET PROGRAM EXPENSES/SUPPLIES ‐ CLAIMS $ 450,000 $ 450,000 INSURANCE 68,300 76,500 BANK FEES 1,500 600 STATE OF DEL ‐ SELF INSURANCE TAX 37,000 37,000 CONTRACTUAL SERVICES 32,000 57,000 TOTAL EXPENSES 588,800 621,100 CURRENT YEAR BALANCE 1,200,600 1,080,800 TOTALS $ 1,789,400 $ 1,701,900 The City Manager is hereby authorized, without further approval of the City Council, to make interdepartmental transfers of up to five percent of the amount hereinafter appropriated to any department with the exception of any transfers prohibited by City Procedure #F306. ADOPTED: June 24, 2013

2013‐2014 BUDGET ORDINANCES ‐ CONTINUED LIBRARY GRANT FUND CASH RECEIPTS/REVENUES AND BUDGET FOR 2013‐2014 BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE CITY OF DOVER, IN COUNCIL MET: The amount hereinafter named aggregating Two Hundred Seventy Thousand One Hundred dollars ($270,100) or so much thereof as may be necessary are hereby appropriated from current revenues and other funds for the use by several departments of the Municipal Government for the fiscal year beginning July 1, 2013 and ending June 30, 2014: OPERATING REVENUES 2012/13 2013/14 REVISED BUDGET BEGINNING BALANCE $ 12,700 $ ‐ STATE GRANT 270,100 270,100 FEDERAL GRANT 1,500 ‐ TOTALS $ 284,300 $ 270,100 OPERATING EXPENSES 2012/13 2013/14 REVISED BUDGET PROGRAM EXPENSES/SUPPLIES $ 27,500 $ 28,000 OFFICE SUPPLIES 20,000 24,000 PRINTING/DUPLICATING 8,900 8,900 POSTAGE 100 100 BOOKS 120,900 124,900 FURNITURE 21,400 2,000 AUDIO VISUAL SUPPLIES 72,000 74,000 TRAINING/CONF/FOOD/TRAV 3,500 3,500 OFFICE EQUIPMENT/REPAIRS & MAINT 2,000 2,000 COMPUTER HARDWARE 8,000 2,700 SUBTOTAL EXPENSES 284,300 270,100 CURRENT YEAR BALANCE ‐ ‐ TOTALS $ 284,300 $ 270,100 The City Manager is hereby authorized, without further approval of the City Council, to make interdepartmental transfers of up to five percent of the amount hereinafter appropriated to any department with the exception of any transfers prohibited by City Procedure #F306. ADOPTED: June 24, 2013

2013‐2014 BUDGET ORDINANCES ‐ CONTINUED POLICE GRANT FUNDS CASH RECEIPTS/REVENUES AND BUDGET FOR 2013‐2014 BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE CITY OF DOVER, IN COUNCIL MET: The amount hereinafter named aggregating Four Hundred Thirteen Thousand and One Hundred dollars ($413,100) or so much thereof as may be necessary are hereby appropriated from current revenues and other funds for the use by several departments of the Municipal Government for the fiscal year beginning July 1, 2013 and ending June 30, 2014: OPERATING REVENUES 2012/13 2013/14 REVISED BUDGET BEGINNING BALANCE $ 178,400 $ 100 GRANTS RECEIVED 505,100 413,000 TOTALS $ 683,500 $ 413,100 OPERATING EXPENSES 2012/13 2013/14 REVISED BUDGET PROGRAM EXPENSES/SUPPLIES $ 129,100 $ 191,000 FURNITURE 16,500 ‐ COMPUTER SOFTWARE 1,400 ‐ COMPUTER HARDWARE 139,900 60,000 TELEPHONE/FAX 15,000 15,000 TRAINING/CONF/FOOD/TRAV 29,500 36,000 CONSULTING/AUDIT FEES 1,000 1,000 CONTRACTUAL SERVICES 161,900 ‐ VEHICLE PURCHASES 35,100 ‐ TRANSFER TO GENERAL FUND 154,000 110,000 SUBTOTAL EXPENSES 683,400 413,000 CURRENT YEAR BALANCE 100 100 TOTALS $ 683,500 $ 413,100 The City Manager is hereby authorized, without further approval of the City Council, to make interdepartmental transfers of up to five percent of the amount hereinafter appropriated to any department with the exception of any transfers prohibited by City Procedure #F306. ADOPTED: June 24, 2013

2013‐2014 BUDGET ORDINANCES ‐ CONTINUED CDBG FUND CASH RECEIPTS/REVENUES AND BUDGET FOR 2013‐2014 BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE CITY OF DOVER, IN COUNCIL MET: The amount hereinafter named aggregating Two Hundred Twenty Three Thousand Six Hundred dollars ($223,600) or so much thereof as may be necessary are hereby appropriated from current revenues and other funds for the use by several departments of the Municipal Government for the fiscal year beginning July 1, 2013 and ending June 30, 2014: OPERATING REVENUES 2012/13 2013/14 REVISED BUDGET BEGINNING BALANCE $ ‐ $ ‐ GRANTS RECEIVED 317,400 223,600 TOTALS $ 317,400 $ 223,600 OPERATING EXPENSES 2012/13 2013/14 REVISED BUDGET 2010 CLOSING COST/DOWNPAYMENT PROG $ 100 $ ‐ 2012 CLOSING COST/DOWNPAYMENT PROG 5,900 ‐ 2012 DOVER INTERFAITH MINISTRY 7,100 ‐ 2012 HOMEOWNER REHAB ASSISTANCE 4,300 ‐ 2012 FIRST STATE RC&D 7,000 ‐ CURRENT YEAR CLOSING COST/DOWNPAYMENT PROG 60,000 40,000 CURRENT YEAR DOVER INTERFAITH MINISTRY 27,500 27,500 CURRENT YEAR MHDC EMERGENCY HOME REPAIR ‐ 40,000 CURRENT YEAR FIRST STATE RC&D 35,000 ‐ CURRENT YEAR ELIZABETH W MURPHEY SCHOOL 32,800 32,700 CURRENT YEAR NCALL RESEARCH INC 7,800 6,000 CURRENT YEAR SERENITY PLACE 30,000 ‐ CURRENT YEAR MILFORD HOUSING H/O REHAB 52,800 32,700 CURRENT YEAR SALARIES 47,100 44,700 SUBTOTAL EXPENSES 317,400 223,600 CURRENT YEAR BALANCE ‐ ‐ TOTALS $ 317,400 $ 223,600 The City Manager is hereby authorized, without further approval of the City Council, to make interdepartmental transfers of up to five percent of the amount hereinafter appropriated to any department with the exception of any transfers prohibited by City Procedure #F306. ADOPTED: June 24, 2013