Attachment

LEGISLATIVE, FINANCE, AND ADMINISTRATION COMMITTEE AGENDA November 14, 2011 - 5:30 P.M. - Council Chambers - City Hall - City of Dover Public comments are welcomed on any item and will be permitted at appropriate times. When possible, please notify the City Clerk (736-7008 or e-mail at CityClerk@dover.de.us) should you wish to be recognized. AGENDA ADDITIONS/DELETIONS 1. Discussion - Senior Citizen Property Tax Abatement - Military Pension Exclusion 2. Proposed Ordinances A. Ordinance #2011-28 - Chapter 2 - Administration, Article IV - Officers and Employees, Division 7 - General Employee Pension Plan, Subdivision I - In General, Section 2-331 - Form of Benefits (Civil Unions) (Staff Sponsored) B. Ordinance #2011-29 - Appendix B - Zoning, Article 3 - District Regulations, Section 2 - General Residence Zones (RG-1 and RG-2), Subsection 2.4 - Conditional Uses (New Subsection (d)) and Article 6 - Off-Street Parking, Driveways and Loading Facilities, Section 3 - Required Off-Street Parking Spaces, Subsection 3.1 - Schedule of Requirements (Sponsors: Bonar, Russell, and Lynn) C. Ordinance #2011-30 - FY12 Budget Revisions (Staff Sponsored) 3. Proposed Resolution No. 2011-12 Requesting the General Assembly to Amend Article IV - Financial Affairs, Section 47 - General Assessment; Levy on Utility Property of the City of Dover Charter and Proposed Ordinance #2011-31 Amending Chapter 102 - Taxation, Article I - In General, Section 102-1. - Valuation and Assessment of the Dover Code (Staff Sponsored) 4. Evaluation of Proposals - Financing of Library and Street Program 5. Public Comment Period 6. Adjournment by 7:00 P.M. /tm S:\AGENDAS & MINUTES\Committee-Agendas\2011\11-14-2011 LF&A.wpd THE AGENDA ITEMS AS LISTED MAY NOT BE CONSIDERED IN SEQUENCE. THIS AGENDA IS SUBJECT TO CHANGE TO INCLUDE THE ADDITION OR THE DELETION OF ITEMS, INCLUDING EXECUTIVE SESSIONS.

ACTION FORM PROCEEDING: Legislative, Finance, and Administration Committee AGENDA ITEM NO.: DEPARTMENT OF ORIGIN: Assessor’s Office DATE SUBMITTED: 11/14/2011 PREPARED BY: Cheryl Russell, Assessor SUBJECT: Discussion – Senior Citizen Property Tax Abatement – Military Pension Exclusion REFERENCE: Cost Savings RELATED PROJECT: APPROVALS: Council EXHIBITS: 1. Michael Smith Email 2. CSRS verses FERS EXPENDITURE REQUIRED: N/A AMOUNT BUDGETED: N/A FUNDING SOURCE (Dept./Page in CIP & Budget): N/A TIMETABLE: Upon Council Approval RECOMMENDED ACTION: Staff recommends not adding Military Pension to the Exclusion of Income; staff recommends updating the language of the ordinance to define CSRS as the type of Federal Service Retirement to be excluded. BACKGROUND AND ANALYSIS Mr. Smith visited our office and requested that we include military pension as an exclusion to income. We requested that he send a letter to be forwarded to the City Council. There was an Ad Hoc Committee formed in October 2007 to discuss any amendments to this program. The changes made consisted of: adding Federal Civil Service Retirement and increasing the income levels yearly based on COLA. A cap on the Federal Civil Service Retirement was added at a later date. The addition of the Federal Civil Service was based on the fact that this retirement plan was similar to Social Security. The retirees that benefit from this program did not pay into Social Security and do not receive this benefit from that employment. The three exclusions from the income limits are all based on Social Security and “like” programs. The idea of adding the Military Pension as an exclusion to income was brought up at the meetings. There was a short discussion and no action was taken. Military Pension was not considered similar to the Social Security or Social Security “like” programs that were excluded from the Income Limits. Also mentioned was the fact that military personnel also received Social Security Benefits. Mr. Smith states that the Federal Civil Service method is out of date and changed 24 years ago. To date we have approximately 40 senior citizens who are on our mailing list that receive an application each year to return to this office who are receiving Federal Civil Service Retirement. Of these 40 Senior Citizens, 28 receive the tax exemption. This exclusion was added to this program because of the similarity to Social Security. From what we understand now, the CSRS (Civil Service Retirement System) is the “old” retirement plan and there are no contributions to Social Security. The “new” retirement plan is FERS (Federal Employee Retirement System), which is a retirement plan and Social Security is contributed. Mr. Smith does have a valid point, that there is another Federal Civil Service Retirement Plan, which would not fall into the Intent of the Income Exclusion. This is not identified in our ordinance. The Assessor’s Office requests that this item be placed on a future Legislative and Finance Committee Meeting for an amendment, to define that the Federal Civil Service Retirement exclusion be CSRS (Civil Service Retirement System). We have verified that the senior citizens enjoying this benefit that have the Federal Civil Service Retirement did in fact have CSRS.

Hart, Annette From: MICHAEL SMITH <thoy1@msn.com> Sent: Monday, October 17, 2011 5:50 PM To: Hart, Annette Subject: senior tax reduction my name is michael l smith, i live at 208 saxondale ln in dover. i'm writng you about my visit to your office and you informed me that my wife and i are NOT entitled to the tax reduction because being retired military is not a federal retirement. you said the city of dover tax assessers office ONLY considers federal retiree's who draw an annuity from the federal gov. i gave you a couple of letters showing you that the method you are using is out of date, and in fact changed 24 years ago. with this in mind i'm asking the tax office to RECONSIDER allowing military retirement to be EXEMPT as salary as federal workers salary is. the current federal worker PAYS SOCIAL SECURITY just as the military does. thank you for giving our request consideration. michael l smith 1

COMMITTEE ACTION FORM PROCEEDING: Legislative, Finance and Administration Committee DEPARTMENT OF ORIGIN: Human Resources DATE SUBMITTED: October 26, 2011 PREPARED BY: Kim Hawkins, Human Resources Director SUBJECT: Pension Ordinance Update to include Civil Unions REFERENCE: Amended Title 13 of the Delaware Code, Chapter 2. Civil Unions RELATED PROJECT: N/A REVIEWED BY: William Pepper, Esq., City Solicitor; Scott Koenig, Interim City Manager EXHIBITS: City of Dover Proposed Ordinance #2011-28 TIMETABLE: Approval by January 1, 2012 at 10:00 a.m. RECOMMENDED ACTION: Staff recommends approval of the updated Pension Ordinance recognizing the same rights, benefits, protections and responsibilities as married persons under Delaware law to partners in legal civil unions, as eligible survivors of pension plan participants. BACKGROUND AND ANALYSIS On, May 11, 2011, Governor Jack Markell signed the Civil Union and Equality Act of 2011. This landmark legislation makes Delaware one of only a handful of states to allow same-sex civil unions and to fully recognize same-sex relationships. Couples who enter into a civil union will enjoy the same rights, protections and obligations that exist for married spouses. The Act becomes effective on January 1, 2012 at 10:00 a.m. Amended Title 13 of the Delaware Code, Chapter 2 Civil Unions states that: “ . . . parties to a civil union shall enjoy all of the same rights, benefits, protections, and shall be subject to all the same responsibilities, as married persons under Delaware Law.” Section 204 Status of children of civil unions also states that: “The rights of parties to a civil union, with respect to a child of whom either party becomes the parent during the term of the civil union shall be the same as the rights (including presumptions of parentage) of married spouses with respect to a child of whom either spouse become the parent during the marriage.” The City of Dover Code of Ordinances, Chapter 2 - Administration, Article IV - Officers and Employees, Division 7 - General Employee Pension Plan, Subdivision I - In General has been updated to recognize recognizing the same rights, benefits, protections and responsibilities as married persons under Delaware law to partners in legal civil unions, as eligible survivors of pension plan participants.

CITY OF DOVER PROPOSED ORDINANCE #2011-28 1 BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE CITY OF DOVER, IN 2 COUNCIL MET: 3 That Chapter 2 - Administration, Article IV - Officers and Employees, Division 7 - General 4 Employee Pension Plan, Subdivision I - In General, Section 2-331 - Form of Benefits, be amended 5 by inserting the text indicated in bold, blue, italics as follows: 6 Section 2-331. Form of benefits. 7 (a) Normal form. A monthly benefit shall be payable on the first day of the second month 8 preceding the date on which application for such benefit is filed. Payment will be retroactive 9 to the retirement date. Payments of benefits shall be payable monthly thereafter during his 10 lifetime, and terminating with the last payment on the first day of the month of the death of 11 the participant. 12 (b) Death of participant, etc. Upon the death of a participant who has retired, or who is eligible 13 to be retired under any of the provisions of this division, payment shall be made to his 14 eligible survivors in the amount of 50 percent of the monthly payments to which the 15 participant was or would have been entitled. Upon the death of a participant who has 16 completed a minimum of 20 years of service but is not yet eligible to retire because of age, 17 payment shall be made to his eligible survivors in the amount of 50 percent of the monthly 18 payment that would have resulted by using his service time; however, the benefit is to be 19 computed at a reduced rate of one-half percent for each month the participant was under the 20 correct age for normal retirement. In no instance shall actual monthly payments be less than 21 $200.00, to be effective July 1, 2000. Upon the death of both the participant and eligible 22 survivor, if the benefit payments received in aggregate are less than the member's 23 contributions, the balance of the member's contributions, plus 5 percent interest, will be paid 24 to the surviving beneficiary designated or his estate if no designation has been made and 25 submitted to the pension board. The amount of benefit payments received and the amount 26 of the member's contributions shall be determined from the record of the pension board of 27 trustees 28 (c) Eligible survivor. An eligible survivor shall be one of the following in the order of preference 29 listed: 30 (1) Spouse/Partner. The participant's spouse who was married to the participant for at least 31 one year. Surviving spouse shall be required to provide supporting documents of 32 marriage. The participant's partner in a civil union, who entered into a lawful civil 33 union in Delaware, or whose legal union is recognized as a civil union under 34 Delaware law, will have all of the same rights, benefits, protections and responsibilities 35 as married persons under Delaware law. (13 Del. C. c. 2). Surviving partner shall be 36 required to provide supporting documents of legal civil union.

Proposed Ordinance #2011-28 - Ch. 2 - Administration, Art. IV - Officers and Employees, Div. 7 - General Employee Pension Plan, Subdiv. I - In General, Sec. 2-331 - Form of Benefits Page 2 37 (2) Children, unmarried. 38 a. The surviving children, biological or legally adopted, of the participant, who have not 39 attained their 18th birthday. 40 b. If said child is attending school on a full-time basis and provides proof of attendance 41 each year of eligibility, with the payment due for the month in which he ceases to 42 attend school on a full-time basis or with the payment due for the month in which his 43 22nd birthday shall occur, whichever shall occur first. 44 (d) Commencement of payment. Benefits payable to eligible survivors shall commence on the 45 first day of the month following the date of the participant's death. 46 (e) Benefits payable. Benefits payable to eligible survivors shall cease: 47 (1) Spouse. With respect to an eligible survivor who is a spouse or partner of a civil union, 48 with the payment due for the month in which their remarriage or death shall occur, 49 whichever occurs first. 50 (2) Children. With respect to an eligible survivor who is a child(ren), with the payment due 51 for the month in which his 18th birthday or death shall occur, whichever shall occur first. 52 Payments shall be made in accordance with subsections (2)a. and b. 53 (f) Eligibility for benefits. The eligibility of any person or persons to receive payment of benefits 54 as an eligible survivor shall be determined conclusively by the pension board based on 55 application of such person or persons and any other information which the pension board 56 deems to be appropriate. 57 (g) This ordinance shall be effective at 10:00 a.m. on January 1, 2012. 58 ADOPTED: * 59 SYNOPSIS 60 This amendment provides the same rights, benefits, protections and responsibilities 61 as married persons under Delaware law to partners in legal civil unions 62 Actions History 63 November 14, 2011 - Scheduled for Consideration by Legislative, Finance, and Administration Committee 64 S:\ORDINANCES\2011\Draft\Ordinance 2011-28 - Civil Unions.wpd

ACTION FORM PROCEEDING: Legislative, Finance and Administration Committee DEPARTMENT OF ORIGIN: Planning & Community Development DATE SUBMITTED: 10/31/11 PREPARED BY: Ann Marie Townshend, AICP, Director of Planning & Community Development on behalf of Councilman David L. Bonar SUBJECT: Draft Ordinance to Amend the Zoning Ordinance Relating to Conditional Uses in the General Residence Zones REFERENCE: Appendix B – Zoning, Article 3 – District Regulations, Section 2 – General Residence Zones (RG-1 and RG-2) and Appendix B – Zoning, Article 6 – Off Street Parking, Driveways and Loading Facilities RELATED PROJECT REVIEWED BY: EXHIBITS: Draft Ordinance EXPENDITURE REQUIRED: N/A AMOUNT BUDGETED: N/A FUNDING SOURCE (Dept./Page in CIP & Budget): N/A TIMETABLE: First Reading on November 28, 2011, Referral to Planning Commission on December 19, 2011, Final Action by City Council on January 9, 2012. RECOMMENDED ACTION: Staff recommends that the proposed ordinance be forwarded to City Council with the above timeline for action. BACKGROUND AND ANALYSIS The proposed ordinance would amend General Residence Zones (RG-1 and RG-2) to allow antique shops, art galleries, gift and card shops, book stores, specialty hobby stores, and restaurants with no alcoholic beverages as accessory uses to the principal residential use, for properties located within the City’s Historic District Zone and/or any Historic District or property listed on the National Register of Historic Places. These uses would be subject to Conditional Use approval by the Planning Commission. It would also amend the Off-Street Parking requirements of Article 6 to indicate that off-street parking requirements specified within the District Regulations would prevail when different than specified in Article 6. The ordinance came about as a result of a homeowner on North State Street wanting to open a “tea house” as an accessory use at her residence. While this may be a compatible use in the downtown historic area, the Zoning Ordinance does not permit such uses. Staff drafted the proposed ordinance to make it similar to how these uses are treated in the RGO (General Residence and Office District).

CITY OF DOVER PROPOSED ORDINANCE #2011-29 1 BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE CITY OF DOVER, IN COUNCIL 2 MET: 3 That Appendix B - Zoning, Article 3 - District Regulations, Section 2 - General Residence Zones (RG-1 and 4 RG-2), Subsection 2.4 - Conditional Uses be amended by inserting a new subsection (d) as follows: 5 (d) In order to stimulate limited commercial activity in the RG-1 and RG-2 zones within the city's 6 historic district zone and/or where a historic district property or a property listed on the National Register 7 of Historic Places exists, and to make this area of historic Dover more attractive to tourists and residents, 8 antique shops, art galleries, gift and card shops, book stores, specialty hobby stores, and restaurants with no 9 alcoholic beverages may be permitted as accessory uses incidental to the principal residential, subject to the 10 conditional use approval of the planning commission in accordance with Article 10 - Planning Commission, 11 Section 1 - Approval of conditional uses and subject to the following : 12 i. Total floor area of any non-residential accessory use shall not exceed 2,000 square feet. 13 ii. A minimum of two off-street parking spaces shall be required to serve the residence and the 14 accessory use. 15 iii. Signage for the accessory use is limited to one sign not to exceed six square feet in area. Signs 16 may be illuminated, provided that internally illuminated signs shall be prohibited. 17 BE IT FURTHER ORDAINED: 18 That Appendix B - Zoning, Article 6 - Off-Street Parking, Driveways and Loading Facilities, Section 3 - 19 Required Off-Street Parking Spaces, Subsection 3.1 - Schedule of Requirements be amended by inserting 20 the text indicated in bold, blue, italics and deleting the text indicated in bold, red, strikeout, as follows: 21 3.1 Schedule of requirements. Accessory off-street parking spaces, open or enclosed, shall be provided 22 for any lot as specified in article 4, zoning bulk and parking regulations or as specified below for 23 each use in any zone, whichever is greater. , except for existing buildings within the C-2 zoning 24 district, where article 4, section 4.14, zoning bulk and parking regulations governing the C-2 25 zoning district shall prevail. 26 27 (a) Exceptions. 28 29 i. Where Article 3 - District Regulations, specifies a minimum parking requirement, this 30 parking requirement shall prevail. 31 ii. For existing buildings within the C-2 zoning district, the requirements of article 4, section 32 4.14 - [C-1, C-1A, C-2, C-2A zoned], bulk and parking regulations governing the C-2 zoning 33 district shall prevail. 34 35 ADOPTED: *

Proposed Ordinance #2011-29 - Append. B, Art. 3, Sec. 2, Subsec. 2.4 - Conditional Uses Page 2 and Art. 6, Sec. 3, Subsec. 3.1 - Schedule of Requirements 36 SYNOPSIS 37 The proposed ordinance would permit limited commercial uses accessory to the principal 38 residential use on properties within the General Residence Zone (RG-1 and RG-2) that are 39 located within the City's Historic District Zone and/or listed on the National Register of 40 Historic Places as part of a historic district or as an individual property. It would also require 41 that such accessory uses be subject to Conditional Use approval by the Planning Commission 42 set standards for such accessory uses. 43 (SPONSORS: BONAR, RUSSELL, AND LYNN ) 44 Actions History 45 November 14, 2011 - Scheduled for Introduction at LF&A Committee 46 S:\ORDINANCES\2011\Draft\Ordinance 2011-29 - Append B, Art 3, Sec 2, Sub 2.4 - Tea House.wpd

DRAFT ACTION FORM PROCEEDING: Legislative, Finance & Administration Committee DEPARTMENT OF ORIGIN: Finance DATE SUBMITTED: 10/28/11 PREPARED BY: Donna Mitchell, Controller/Treasurer SUBJECT: Budget Ordinance – First Amendment REFERENCE: N/A APPROVALS: Committee & Council EXHIBITS: Draft Budget Ordinances EXPENDITURE REQUIRED: As attached AMOUNT BUDGETED: As attached TIMETABLE: RECOMMENDED ACTION: Approval of draft budget ordinance to be forwarded to City Council for first reading on November 28, 2011. The attached budget ordinance incorporates the following changes into the FY12 Budget. • Changes for operating grants and individual grant funds. i.e. General Fund – Recycling Grant. • Capital project balances for those projects with multi-year construction periods, along with the balance of the funding sources that carry over into the current year. • All reserve accounts updated to reflect Beginning Budget Balances for FY12 now that all activities are posted and reconciliations have been completed for FY11. The Beginning Balances are lower than projected due to lower investment returns. (The Operating Funds will be submitted at a later date once the audit has been completed) • Incorporates the Police Grant Funds that was missed in the original budget ordinance. o The budget ordinance represents the fund summary, the individual revenue and expenditure line items will be entered into the City’s financial accounting system for each grant. • Adjusts the bank qualified loan financing and budget for projects being financed. • Some administrative clean up – i.e. The $350,000 budgeted for the Street Program in the General Fund budgets is transferred to the Community Transportation Fund. When this was removed from the from the final General Fund budget it was not removed from the Community Transportation Fund. All changes are notated in red font.

DRAFT CITY OF DOVER ORDINANCE # 2011-30 2011-2012 BUDGET ORDINANCES GENERAL FUND - REVENUES AND BUDGET FOR 2011-2012 1 BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE CITY OF DOVER, IN COUNCIL MET: 2 The amount hereinafter named aggregating Thirty Eight Million, One Hundred Thirty-Nine Thousand, 3 Nine Hundred Seventy-Two dollars ($38,139,972) or so much thereof as may be necessary are hereby 4 appropriated from current revenues and other funds for the use by several departments of the 5 Municipal Government for the fiscal year beginning July 1, 2011 and ending June 30, 2012: 6 ORIGINAL REVISED 7 2011/12 2011/12 8 BUDGET BUDGET 9 BEGINNING BALANCE $ 3,322,305 $ 3,322,305 10 REVENUES 11 FINES AND POLICE REVENUE 579,000 579,000 12 911 FEE 60,000 60,000 13 INVESTMENT INCOME 215,900 215,900 14 LIBRARY REVENUES 44,100 44,100 15 KENT COUNTY BOOK REIMBURSEMENT 390,900 390,900 16 BUSINESS LICENSES 1,523,675 1,523,675 17 PERMITS AND OTHER LICENSES 934,000 934,000 18 MISCELLANEOUS CHARGES 165,750 165,750 19 POLICE EXTRA DUTY 300,000 300,000 20 PROPERTY TAXES 11,133,367 11,133,367 21 BID REVENUE 51,821 51,821 22 RECREATION REVENUE 152,000 152,000 23 FRANCHISE FEE 520,000 520,000 24 TRASH FEES 2,050,000 2,050,000 25 RENT REVENUE - GARRISON FARM 87,000 87,000 26 COURT OF CHANCERY FEES 690,000 690,000 27 REVENUES SUBTOTAL 18,897,513 18,897,513 28 INTERFUND SERVICE RECEIPTS 29 INTERFUND SERVICE RECEIPTS WATER/WASTEWATER 988,393 988,393 30 INTRAFUND SERVICE RECEIPTS ELECTRIC 3,370,778 3,370,778 31 INTERFUND SERVICE RECEIPTS SUBTOTAL 4,359,171 4,359,171 32 GRANTS 33 POLICE RELATED 60,000 60,000 34 CAPITAL SCHOOL DISTRICT REVENUE 73,500 73,500 35 POLICE PENSION GRANT 620,000 620,000 36 UNIVERSAL RECYCLING GRANT - 79,873 37 GRANTS SUBTOTAL 753,500 833,373 38 TRANSFERS FROM 39 TRANSFER TAX 900,000 900,000 40 MUNICIPAL STREET AID 526,814 526,814 41 CIVIL TRAFFIC PENALTIES 1,000,000 1,000,000 42 WATER/WASTEWATER 424,508 424,508 43 ELECTRIC 7,876,288 7,876,288 44 TRANSFERS FROM SUBTOTAL 10,727,610 10,727,610 45 TOTAL REVENUES $ 34,737,794 $ 34,817,667 46 TOTAL BEGINNING BALANCE AND REVENUES $ 38,060,099 $ 38,139,972

DRAFT 2011-2012 BUDGET ORDINANCES - CONTINUED GENERAL FUND - REVENUES AND BUDGET FOR 2011-2012 47 ORIGINAL REVISED 48 2011/12 2011/12 49 BUDGET BUDGET 50 DEPARTMENT EXPENSES 51 CITY CLERK $ 296,393 $ 296,393 52 COUNCIL 120,699 120,699 53 TAX ASSESSOR 213,175 213,175 54 FIRE 684,725 684,725 55 GROUNDS MAINTENANCE 979,922 979,922 56 LIBRARY 1,159,087 1,159,087 57 RECREATION 789,701 789,701 58 LIFE SAFETY 449,226 449,226 59 CODE INFORCEMENT 284,489 284,489 60 PLANNING 422,781 422,781 61 INSPECTIONS 553,907 553,907 62 ECONOMIC DEVELOPMENT 223,717 223,717 63 POLICE 12,955,807 12,955,807 64 POLICE EXTRA DUTY 430,600 430,600 65 STREETS 782,810 782,810 66 SANITATION 2,330,976 2,410,849 67 CITY MANAGER 622,127 622,127 68 INFORMATION TECHNOLOGY 685,871 685,871 69 FINANCE 852,283 852,283 70 PUBLIC SERVICES - ADMINISTRATION 472,692 472,692 71 FACILITIES MANAGEMENT 952,693 952,693 72 CENTRAL SERVICES 693,339 693,339 73 FLEET MAINTENANCE 695,422 695,422 74 CUSTOMER SERVICES 928,112 928,112 75 HUMAN RESOURCES 384,758 384,758 76 MAYOR 81,154 81,154 77 DEPARTMENT SUBTOTALS 29,046,466 29,126,339 78 OTHER EXPENSES 79 DEBT SERVICE 327,270 327,270 80 INSURANCE 550,000 550,000 81 RETIREES HEALTH CARE 1,374,709 1,374,709 82 PENSION UNFUNDED LIABILITY 1,450,000 1,450,000 83 POLICE PENSION FUND 620,000 620,000 84 POLICE PENSION UNFUNDED LIABILITY 95,000 95,000 85 UNCOLLECTIBLES - TRASH AND OTHER 10,000 10,000 86 STREET LIGHTS 960,000 960,000 87 OTHER EXPENSE SUBTOTAL 5,386,979 5,386,979 88 TRANSFERS 89 TRANSFER TO CAPITAL FUND - PROJECTS 623,847 623,847 90 TRANSFER TO CAPITAL FUND - RESERVE 200,000 200,000 91 TRANSFERS SUBTOTAL 823,847 823,847 92 CURRENT YEAR BALANCE 2,802,807 2,802,807 93 TOTAL CURRENT YEAR BALANCE AND EXPENDITURES $ 38,060,099 $ 38,139,972 94 The City Manager is hereby authorized, without further approval of the City Council, to make inter- 95 departmental transfers of up to five percent of the amount hereinafter appropriated to any department 96 with the exception of any transfers prohibited by City Procedure #F306.

DRAFT 2011-2012 BUDGET ORDINANCES - CONTINUED 97 GOVERNMENTAL CAPITAL PROJECTS FUND 98 REVENUES AND BUDGET FOR 2011-2012 99 BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE CITY OF DOVER, IN COUNCIL MET: 100 The amount hereinafter named aggregating Fifteen Million, Three Hundred Seventy-Eight Thousand, 101 Eight Hundred Twenty-Eight dollars ($15,378,828) or so much thereof as may be necessary are hereby 102 appropriated from current revenues and other funds for the use by several departments of the 103 Municipal Government for the fiscal year beginning July 1, 2011 and ending June 30, 2012: 104 REVENUES 105 ORIGINAL REVISED 106 2011/12 2011/12 107 BUDGET BUDGET 108 BEGINNING BALANCE - PROJECTS $ 195,191 $ - $ 195,191 109 BEGINNING BALANCE - LIBRARY - 100,962 100,962 110 REVENUES 111 STATE GRANTS 5,597,505 1,519,678 7,117,183 112 DEMEC GRANT - 215,000 215,000 113 BTOP & GREENHOUSE GAS REDUCTION GRANTS - 90,000 90,000 114 KENT COUNTY LIBRARY CONTRIBUTION - 1,000,000 1,000,000 115 LIBRARY GREEN ENERGY/BRIDGE LOAN 2,334,889 365,111 2,700,000 116 CONSTRUCTION LOAN FOR LIBRARY - 274,961 274,961 117 TRANSFER FROM LIBRARY RESERVE 3,262,615 (671,831) 2,590,784 118 FRIENDS OF THE LIBRARY DONATION - 210,000 210,000 119 LOAN PROCEEDS - STREETS, CITY HALL 2,000,000 2,000,000 120 TRANSFER FROM GENERAL FUND FOR PROJECTS 623,847 623,847 121 INTEREST EARNINGS 10,900 10,900 122 TOTAL REVENUES 13,829,756 16,832,675 123 TOTAL BEGINNING BALANCE AND REVENUES $ 14,024,947 $ 17,128,828

DRAFT 2011-2012 BUDGET ORDINANCES - CONTINUED GOVERNMENTAL CAPITAL PROJECTS FUND - CONTINUED REVENUES AND BUDGET FOR 2011-2012 124 EXPENSE SUMMARY 125 ORIGINAL REVISED 126 2011/12 2011/12 127 DEPARTMENT EXPENSES BUDGET BUDGET 128 FIRE $ 244,820 $ 244,820 129 LIBRARY 11,195,009 3,103,881 14,298,890 130 RECREATION 30,000 30,000 131 POLICE 65,000 65,000 132 STREETS 1,230,027 750,000 1,980,027 133 SANITATION 136,500 136,500 134 FACILITIES MAINTENANCE - 220,000 220,000 135 INFORMATION TECHNOLOGY 6,400 6,400 136 LOAN ISSUANCE COSTS - 30,000 30,000 137 EXPENSES SUBTOTAL 12,907,756 17,011,637 138 CURRENT YEAR BALANCE - LOAN PROCEEDS 1,000,000 (1,000,000) - 139 CURRENT YEAR BALANCE 117,191 117,191 140 TOTAL CURRENT YEAR BALANCES AND EXPENSES $ 14,024,947 $ 17,128,828 141 The City Manager is hereby authorized, without further approval of the City Council, to make inter- 142 departmental transfers of up to five percent of the amount hereinafter appropriated to any department 143 with the exception of any transfers prohibited by City Procedure #F306.

DRAFT 2011-2012 BUDGET ORDINANCES - CONTINUED 144 GENERAL FUND CONTINGENCY 145 SOURCES AND USE OF FUNDS FOR 2011-2012 146 BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE CITY OF DOVER, IN COUNCIL MET: 147 The amount hereinafter named aggregating Seven Hundred Eleven Thousand, Seven Hundred Forty- 148 Seven dollars ($711,747) or so much thereof as may be necessary are hereby appropriated from 149 current revenues and other funds for the use by several departments of the Municipal Government for 150 the fiscal year beginning July 1, 2011 and ending June 30, 2012: 151 CASH RECEIPTS 152 ORIGINAL REVISED 153 2011/12 2011/12 154 BUDGET BUDGET 155 BEGINNING BALANCE $ 725,554 $ 711,747 156 TOTALS $ 725,554 $ 711,747 157 BUDGET SUMMARY 158 ORIGINAL REVISED 159 2011/12 2011/12 160 BUDGET BUDGET 161 CURRENT YEAR BALANCE $ 725,554 $ 711,747 162 TOTALS $ 725,554 $ 711,747 163 The City Manager is hereby authorized, without further approval of the City Council, to make inter- 164 departmental transfers of up to five percent of the amount hereinafter appropriated to any department 165 with the exception of any transfers prohibited by City Procedure #F306.

DRAFT 2011-2012 BUDGET ORDINANCES - CONTINUED 166 GENERAL CAPITAL ASSET REPLACEMENT FUND 167 SOURCES AND USE OF FUNDS FOR 2011-2012 168 BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE CITY OF DOVER, IN COUNCIL MET: 169 The amount hereinafter named aggregating Four Hundred Sixty Thousand, Nine Hundred Twenty 170 dollars ($460,920) or so much thereof as may be necessary are hereby appropriated from current 171 revenues and other funds for the use by several departments of the Municipal Government for the 172 fiscal year beginning July 1, 2011 and ending June 30, 2012: 173 CASH RECEIPTS 174 ORIGINAL REVISED 175 2011/12 2011/12 176 BUDGET BUDGET 177 BEGINNING BALANCE $ 256,645 $ 253,420 178 INTEREST EARNINGS 7,500 7,500 179 TRANSFER FROM GENERAL FUND 200,000 200,000 180 TOTALS 464,145 460,920 181 BUDGET SUMMARY 182 ORIGINAL REVISED 183 2011/12 2011/12 184 BUDGET BUDGET 185 CURRENT YEAR BALANCE $ 464,145 $ 460,920 186 TOTALS $ 464,145 $ 460,920 187 The City Manager is hereby authorized, without further approval of the City Council, to make inter- 188 departmental transfers of up to five percent of the amount hereinafter appropriated to any department 189 with the exception of any transfers prohibited by City Procedure #F306.

DRAFT 2011-2012 BUDGET ORDINANCES - CONTINUED 190 MUNICIPAL STREET AID FUND 191 REVENUES AND BUDGET FOR 2011-2012 192 BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE CITY OF DOVER, IN COUNCIL MET: 193 The amount hereinafter named aggregating Five Hundred Twenty-Six Thousand, Nine Hundred Sixteen 194 dollars ($526,916) or so much thereof as may be necessary are hereby appropriated from current 195 revenues and other funds for the use by several departments of the Municipal Government for the 196 fiscal year beginning July 1, 2011 and ending June 30, 2012: 197 REVENUES 198 ORIGINAL REVISED 199 2011/12 2011/12 200 BUDGET BUDGET 201 BEGINNING BALANCE $ 100 $ 102 202 STATE GRANT 526,814 526,814 203 INTEREST EARNED 100 - 204 TOTALS $ 527,014 $ 526,916 205 EXPENSE SUMMARY 206 ORIGINAL REVISED 207 2011/12 2011/12 208 BUDGET BUDGET 209 TRANSFER TO GENERAL FUND $ 526,814 $ 526,816 210 CURRENT YEAR BALANCE 200 100 211 TOTALS $ 527,014 $ 526,916 212 The City Manager is hereby authorized, without further approval of the City Council, to make inter- 213 departmental transfers of up to five percent of the amount hereinafter appropriated to any department 214 with the exception of any transfers prohibited by City Procedure #F306.

DRAFT 2011-2012 BUDGET ORDINANCES - CONTINUED 215 WATER/WASTEWATER IMPROVEMENT & EXTENSION FUND 216 REVENUES AND BUDGET FOR 2011-2012 217 BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE CITY OF DOVER, IN COUNCIL MET: 218 The amount hereinafter named aggregating Eight Million, Four Hundred Sixty-Nine Thousand, Four 219 Hundred Ninty-Two dollars ($8,469,492) or so much thereof as may be necessary are hereby 220 approprated from current revenues and other funds for the use by several departments of the 221 Municipal Government for the fiscal year beginning July 1, 2011 and ending June 30, 2012: 222 REVENUES 223 ORIGINAL REVISED 224 2011/12 2011/12 225 BUDGET BUDGET 226 BEGINNING BALANCE - WATER $ 1,139,872 $ 1,139,872 227 BEGINNING BALANCE - WASTEWATER 303,476 303,476 228 REVENUES 229 STATE LOAN-WATER 2010 ISSUE - 1,923,489 230 STATE LOAN-WASTEWATER 2009 ISSUE 1,800,000 1,621,272 231 STATE LOAN-WASTEWATER 2011 ISSUE - 765,060 232 TRANS FR WATER/WASTEWATER FOR WATER 750,000 750,000 233 TRANS FR WATER/WASTEWATER FOR WASTEWATER 1,000,000 1,000,000 234 TRANSFER FROM IMPACT FEE RESERVE 262,840 867,032 235 FEDERAL/STATE GRANTS - - 236 TOTAL REVENUES 3,812,840 6,926,853 237 TOTAL BEGINNING BALANCE AND REVENUES $ 5,256,188 $ 8,370,201 238 EXPENSE SUMMARY 239 ORIGINAL REVISED 240 2011/12 2011/12 241 DEPARTMENT EXPENSES BUDGET BUDGET 242 WATER $ 766,240 $ 3,086,468 243 WASTEWATER 3,404,900 4,217,976 244 WATER TREATMENT PLANT 22,900 22,900 245 WATER CONSTRUCTION 30,100 30,100 246 TOTAL DEPARTMENT EXPENSES 4,224,140 7,357,444 247 CURRENT YEAR BALANCE - WATER 1,070,632 673,893 248 CURRENT YEAR BALANCE - WASTEWATER (38,584) 338,864 249 TOTAL CURRENT YEAR BALANCES AND EXPENSES $ 5,256,188 $ 8,370,201 250 The City Manager is hereby authorized, without further approval of the City Council, to make inter- 251 departmental transfers of up to five percent of the amount hereinafter appropriated to any department 252 with the exception of any transfers prohibited by City Procedure #F306.

DRAFT 2011-2012 BUDGET ORDINANCES - CONTINUED 253 WATER/WASTEWATER CAPITAL ASSET RESERVE 254 SOURCES AND USE OF FUNDS FOR 2011-2012 255 BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE CITY OF DOVER, IN COUNCIL MET: 256 The amount hereinafter named aggregating Nine Hundred Four Thousand, Seven Hundred Ninety- 257 Seven dollars ($904,797) or so much thereof as may be necessary are hereby appropriated from 258 current revenues and other funds for the use by several departments of the Municipal Government for 259 the fiscal year beginning July 1, 2011 and ending June 30, 2012: 260 CASH RECEIPTS 261 ORIGINAL REVISED 262 2011/12 2011/12 263 BUDGET BUDGET 264 BEGINNING BALANCE - WATER $ 336,064 $ 315,695 265 BEGINNING BALANCE - WASTEWATER 168,470 167,966 266 REVENUES 267 INTEREST EARNINGS - WATER 10,082 10,082 268 INTEREST EARNINGS - WASTEWATER 5,054 5,054 269 TRANSFER FROM WATER 100,000 100,000 270 TRANSFER FROM WASTEWATER 300,000 300,000 271 TRANSFER FROM WATER/WASTEWATER CONTINGENCY 6,000 6,000 272 TOTAL REVENUES $ 421,136 $ 421,136 273 TOTAL BEGINNING BALANCES AND REVENUES $ 925,670 $ 904,797 274 BUDGET SUMMARY 275 ORIGINAL REVISED 276 2011/12 2011/12 277 BUDGET BUDGET 278 CURRENT YEAR BALANCE - WATER $ 452,146 $ 431,777 279 CURRENT YEAR BALANCE - WASTEWATER 473,524 473,020 280 TOTAL CURRENT YEAR BALANCES $ 925,670 $ 904,797 281 The City Manager is hereby authorized, without further approval of the City Council, to make inter- 282 departmental transfers of up to five percent of the amount hereinafter appropriated to any department 283 with the exception of any transfers prohibited by City Procedure #F306.

DRAFT 2011-2012 BUDGET ORDINANCES - CONTINUED 284 WATER/WASTEWATER CONTINGENCY RESERVE 285 SOURCES AND USE OF FUNDS FOR 2011-2012 286 BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE CITY OF DOVER, IN COUNCIL MET: 287 The amount hereinafter named aggregating Two Hundred Eighty-Nine Thousand, Five Hundred 288 Nineteen dollars ($289,519) or so much thereof as may be necessary are hereby appropriated from 289 current revenues and other funds for the use by several departments of the Municipal Government for 290 the fiscal year beginning July 1, 2011 and ending June 30, 2012: 291 CASH RECEIPTS 292 ORIGINAL REVISED 293 2011/12 2011/12 294 BUDGET BUDGET 295 BEGINNING BALANCE $ 266,839 $ 281,513 296 INTEREST EARNINGS 8,006 8,006 297 TRANSFER FROM WATER/WASTEWATER 8,000 - 298 TOTALS $ 282,845 $ 289,519 299 BUDGET SUMMARY 300 ORIGINAL REVISED 301 2011/12 2011/12 302 BUDGET BUDGET 303 TRANSFER TO CAPITAL ASSET RESERVE $ 6,000 $ - 304 CURRENT YEAR BALANCE 276,845 289,519 305 TOTALS $ 282,845 $ 289,519 306 The City Manager is hereby authorized, without further approval of the City Council, to make inter- 307 departmental transfers of up to five percent of the amount hereinafter appropriated to any department 308 with the exception of any transfers prohibited by City Procedure #F306.

DRAFT 2011-2012 BUDGET ORDINANCES - CONTINUED 309 ELECTRIC UTILITY IMPROVEMENT AND EXTENSION FUND 310 REVENUES AND BUDGET FOR 2011-2012 311 BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE CITY OF DOVER, IN COUNCIL MET: 312 The amount hereinafter named aggregating Six Million, Five Hundred Fifty-Seven Thousand, Two 313 Hundred Seventy-One dollars ($6,557,271) or so much thereof as may be necessary are hereby 314 appropriated from current revenues and other funds for the use by several departments of the 315 Municipal Government for the fiscal year beginning July 1, 2011 and ending June 30, 2012: 316 REVENUES 317 ORIGINAL REVISED 318 2011/12 2011/12 319 BUDGET BUDGET 320 BEGINNING BALANCE $ 2,561,096 $ 2,648,141 321 REVENUES 322 INTEREST EARNINGS 38,400 38,400 323 RECEIPT FROM DEPRECIATION RESERVE 300,000 300,000 324 TRANSFER FROM INSURANCE STABILIZATION 70,730 70,730 325 TRANSFER FROM ELECTRIC 3,500,000 3,500,000 326 TOTAL REVENUES 3,909,130 3,909,130 327 TOTALS $ 6,470,226 $ 6,557,271 328 EXPENSE SUMMARY 329 ORIGINAL REVISED 330 2011/12 2011/12 331 EXPENSES BUDGET BUDGET 332 ELECTRIC GENERATION $ 1,810,410 $ 1,897,455 333 TRANSMISSION AND DISTRIBUTION 648,337 648,337 334 ELECTRICAL ENGINEERING 1,790,716 1,790,716 335 METER READING 20,000 20,000 336 TOTAL EXPENSES 4,269,463 4,356,508 337 CURRENT YEAR BALANCE 2,200,763 2,200,763 338 TOTAL CURRENT YEAR BALANCE AND EXPENSES $ 6,470,226 $ 6,557,271 339 The City Manager is hereby authorized, without further approval of the City Council, to make inter- 340 departmental transfers of up to five percent of the amount hereinafter appropriated to any department 341 with the exception of any transfers prohibited by City Procedure #F306.

DRAFT 2011-2012 BUDGET ORDINANCES - CONTINUED 342 ELECTRIC UTILITY CONTINGENCY RESERVE 343 SOURCES AND USE OF FUNDS FOR 2011-2012 344 BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE CITY OF DOVER, IN COUNCIL MET: 345 The amount hereinafter named aggregating One Million, Fifty-Six Thousand, Seven Hundred Eighty-Nine 346 dollars ($1,056,789) or so much thereof as may be necessary are hereby appropriated from current 347 revenues and other funds for the use by several departments of the Municipal Government for 348 the fiscal year beginning July 1, 2011 and ending June 30, 2012: 349 CASH RECEIPTS 350 ORIGINAL REVISED 351 2011/12 2011/12 352 BUDGET BUDGET 353 BEGINNING BALANCE $ 1,039,766 $ 1,056,789 354 TRANSFER FROM INSURANCE STABILIZATION 70,730 - 355 TOTALS $ 1,110,496 $ 1,056,789 356 BUDGET SUMMARY 357 ORIGINAL REVISED 358 2011/12 2011/12 359 BUDGET BUDGET 360 CURRENT YEAR BALANCE $ 1,110,496 $ 1,056,789 361 TOTALS $ 1,110,496 $ 1,056,789 362 The City Manager is hereby authorized, without further approval of the City Council, to make inter- 363 departmental transfers of up to five percent of the amount hereinafter appropriated to any department 364 with the exception of any transfers prohibited by City Procedure #F306.

DRAFT 2011-2012 BUDGET ORDINANCES - CONTINUED 365 ELECTRIC UTILITY DEPRECIATION RESERVE 366 SOURCES AND USE OF FUNDS FOR 2011-2012 367 BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE CITY OF DOVER, IN COUNCIL MET: 368 The amount hereinafter named aggregating Ten Million, Seven Hundred Eighteen Thousand, 369 Six Hundred Twenty-One dollars ($10,718,621) or so much thereof as may be necessary are hereby 370 appropriated from current revenues and other funds for the use by several departments of the 371 Municipal Government for the fiscal year beginning July 1, 2011 and ending June 30, 2012: 372 CASH RECEIPTS 373 ORIGINAL REVISED 374 2011/12 2011/12 375 BUDGET BUDGET 376 BEGINNING BALANCE $ 10,511,755 $ 10,412,221 377 INTEREST EARNINGS 306,400 306,400 378 TOTALS $ 10,818,155 $ 10,718,621 379 BUDGET SUMMARY 380 ORIGINAL REVISED 381 2011/12 2011/12 382 BUDGET BUDGET 383 TRANSFER TO IMPROVEMENT AND EXTENSION $ 300,000 $ 300,000 384 TRANSFER TO FUTURE CAPACITY 500,000 500,000 385 CURRENT YEAR BALANCE 10,018,155 9,918,621 386 TOTALS $ 10,818,155 $ 10,718,621 387 The City Manager is hereby authorized, without further approval of the City Council, to make inter- 388 departmental transfers of up to five percent of the amount hereinafter appropriated to any department 389 with the exception of any transfers prohibited by City Procedure #F306.

DRAFT 2011-2012 BUDGET ORDINANCES - CONTINUED 390 ELECTRIC UTILITY FUTURE CAPACITY RESERVE 391 SOURCES AND USE OF FUNDS FOR 2011-2012 392 BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE CITY OF DOVER, IN COUNCIL MET: 393 The amount hereinafter named aggregating Nine Million, Nine Hundred Fifty-Seven Thousand, Five 394 Hundred Seventy-One dollars ($9,957,571) or so much thereof as may be necessary are hereby 395 appropriated from current revenues and other funds for the use by several departments of the 396 Municipal Government for the fiscal year beginning July 1, 2011 and ending June 30, 2012: 397 CASH RECEIPTS 398 ORIGINAL REVISED 399 2011/12 2011/12 400 BUDGET BUDGET 401 BEGINNING BALANCE $ 9,294,628 $ 9,178,771 402 RECEIPT FROM DEPRECIATION RESERVE 500,000 500,000 403 INTEREST EARNINGS 278,800 278,800 404 TOTALS $ 10,073,428 $ 9,957,571 405 BUDGET SUMMARY 406 ORIGINAL REVISED 407 2011/12 2011/12 408 BUDGET BUDGET 409 CURRENT YEAR BALANCE $ 10,073,428 $ 9,957,571 410 TOTALS $ 10,073,428 $ 9,957,571 411 The City Manager is hereby authorized, without further approval of the City Council, to make inter- 412 departmental transfers of up to five percent of the amount hereinafter appropriated to any department 413 with the exception of any transfers prohibited by City Procedure #F306.

DRAFT 2011-2012 BUDGET ORDINANCES - CONTINUED 414 ELECTRIC UTILITY INSURANCE STABLIZATION RESERVE 415 SOURCES AND USE OF FUNDS FOR 2011-2012 416 BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE CITY OF DOVER, IN COUNCIL MET: 417 The amount hereinafter named aggregating Four Hundred Fifteen Thousand, Six Hundred Thirty-Five 418 dollars ($415,635) or so much thereof as may be necessary are hereby appropriated from current 419 revenues and other funds for the use by several departments of the Municipal Government for the 420 fiscal year beginning July 1, 2011 and ending June 30, 2012: 421 CASH RECEIPTS 422 ORIGINAL REVISED 423 2011/12 2011/12 424 BUDGET BUDGET 425 BEGINNING BALANCE $ 408,430 $ 403,335 426 INTEREST EARNINGS 12,300 12,300 427 TOTALS $ 420,730 $ 415,635 428 BUDGET SUMMARY 429 ORIGINAL REVISED 430 2011/12 2011/12 431 BUDGET BUDGET 432 TRANSFER TO ELECTRIC IMPROVEMENT & EXTENSION $ 70,730 $ 70,730 433 CURRENT YEAR BALANCE 350,000 344,905 434 TOTALS $ 420,730 $ 415,635 435 The City Manager is hereby authorized, without further approval of the City Council, to make inter- 436 departmental transfers of up to five percent of the amount hereinafter appropriated to any department 437 with the exception of any transfers prohibited by City Procedure #F306.

DRAFT 2011-2012 BUDGET ORDINANCES - CONTINUED 438 ELECTRIC UTILITY RATE STABLIZATION RESERVE 439 SOURCES AND USE OF FUNDS FOR 2011-2012 440 BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE CITY OF DOVER, IN COUNCIL MET: 441 The amount hereinafter named aggregating Six Million, Three Hundred Forty-Six Thousand, Seven 442 Hundred Sixty-Eight dollars ($6,346,768) or so much thereof as may be necessary are hereby 443 appropriated from urrent revenues and other funds for the use by several departments of the 444 Municipal Government for the fiscal year beginning July 1, 2011 and ending June 30, 2012: 445 CASH RECEIPTS 446 ORIGINAL REVISED 447 2011/12 2011/12 448 BUDGET BUDGET 449 BEGINNING BALANCE $ 6,219,819 $ 6,160,168 450 INTEREST EARNINGS 186,600 186,600 451 TOTALS $ 6,406,419 $ 6,346,768 452 BUDGET SUMMARY 453 ORIGINAL REVISED 454 2011/12 2011/12 455 BUDGET BUDGET 456 TRANSFER TO ELECTRIC FUND $ 1,000,000 $ 1,000,000 457 CURRENT YEAR BALANCE 5,406,419 5,346,768 458 TOTALS $ 6,406,419 $ 6,346,768 459 The City Manager is hereby authorized, without further approval of the City Council, to make inter- 460 departmental transfers of up to five percent of the amount hereinafter appropriated to any department 461 with the exception of any transfers prohibited by City Procedure #F306.

DRAFT 2011-2012 BUDGET ORDINANCES - CONTINUED 462 COMMUNITY TRANSPORTATION IMPROVEMENT FUND 463 REVENUES AND BUDGET FOR 2011-2012 464 BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE CITY OF DOVER, IN COUNCIL MET: 465 The amount hereinafter named aggregating Three Million, Nine Hundred Sixty-Five Thousand, Four 466 Hundred Fifty-One dollars ($3,965,451) or so much thereof as may be necessary are hereby 467 appropriated from current revenues and other funds for the use by several departments of the 468 Municipal Government for the fiscal year beginning July 1, 2011 and ending June 30, 2012: 469 REVENUES 470 ORIGINAL REVISED 471 2011/12 2011/12 472 BUDGET BUDGET 473 BEGINNING BALANCE $ 312,651 $ 312,651 474 REVENUES 475 GRANTS REVENUE 1,900,000 1,900,000 476 TRANSFER FROM GENERAL FUND 350,000 - 477 LOAN PROCEEDS - STREETS - 1,750,000 478 INTEREST INCOME 2,800 2,800 479 TOTAL REVENUES 2,252,800 3,652,800 480 TOTAL BEGINNING BALANCE AND REVENUES $ 2,565,451 $ 3,965,451 481 EXPENSE SUMMARY 482 ORIGINAL REVISED 483 2011/12 2011/12 484 EXPENSES BUDGET BUDGET 485 PROGRAM EXPENSES $ 1,300,000 $ 2,175,000 486 LINCOLN PARK/CLARENCE STREET GRANT EXP. 900,000 900,000 487 TOTAL EXPENSES 2,200,000 3,075,000 488 CURRENT YEAR BALANCE - 875,000 489 CURRENT YEAR BALANCE - STATE FUNDS 365,451 15,451 490 TOTAL CURRENT YEAR BALANCES AND EXPENSES $ 2,565,451 $ 3,965,451 491 The City Manager is hereby authorized, without further approval of the City Council, to make inter- 492 departmental transfers of up to five percent of the amount hereinafter appropriated to any department 493 with the exception of any transfers prohibited by City Procedure #F306.

DRAFT 2011-2012 BUDGET ORDINANCES - CONTINUED 494 PARKLAND/RECREATION RESERVE 495 SOURCES AND USE OF FUNDS FOR 2011-2012 496 BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE CITY OF DOVER, IN COUNCIL MET: 497 The amount hereinafter named aggregating Two Hundred One Thousand, Four Hundred Twenty-Two 498 dollars ($201,422) or so much thereof as may be necessary are hereby appropriated from current 499 revenues and other funds for the use by several departments of the Municipal Government for the 500 fiscal year beginning July 1, 2011 and ending June 30, 2012: 501 CASH RECEIPTS 502 ORIGINAL REVISED 503 2011/12 2011/12 504 BUDGET BUDGET 505 BEGINNING BALANCE $ 191,522 $ 195,672 506 INTEREST INCOME 5,750 5,750 507 TOTALS $ 197,272 $ 201,422 508 BUDGET SUMMARY 509 ORIGINAL REVISED 510 2011/12 2011/12 511 BUDGET BUDGET 512 CURRENT YEAR BALANCE 197,272 201,422 513 TOTALS $ 197,272 $ 201,422 514 The City Manager is hereby authorized, without further approval of the City Council, to make inter- 515 departmental transfers of up to five percent of the amount hereinafter appropriated to any department 516 with the exception of any transfers prohibited by City Procedure #F306.

DRAFT 2011-2012 BUDGET ORDINANCES - CONTINUED 517 LIBRARY RESERVE 518 SOURCES AND USE OF FUNDS FOR 2011-2012 519 BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE CITY OF DOVER, IN COUNCIL MET: 520 The amount hereinafter named aggregating Two Million, Five Hundred Ninety Thousand, Seven 521 Hundred Eighty-Four dollars ($2,590,784) or so much thereof as may be necessary are hereby 522 appropriated from current revenues and other funds for the use by several departments of the 523 Municipal Government for the fiscal year beginning July 1, 2011 and ending June 30, 2012: 524 CASH RECEIPTS 525 ORIGINAL REVISED 526 2011/12 2011/12 527 BUDGET BUDGET 528 BEGINNING BALANCE $ 1,217,579 $ 2,575,784 529 INTEREST INCOME 109,900 15,000 530 TOTALS $ 1,327,479 $ 2,590,784 531 EXPENSE SUMMARY 532 ORIGINAL REVISED 533 2011/12 2011/12 534 BUDGET BUDGET 535 TRANSFER TO CAPITAL PROJECT FUND $ 1,200,938 $ 2,590,784 536 CURRENT YEAR BALANCE 126,541 - 537 TOTALS $ 1,327,479 $ 2,590,784 538 The City Manager is hereby authorized, without further approval of the City Council, to make inter- 539 departmental transfers of up to five percent of the amount hereinafter appropriated to any department 540 with the exception of any transfers prohibited by City Procedure #F306.

DRAFT 2011-2012 BUDGET ORDINANCES - CONTINUED 541 LIBRARY GRANT FUND 542 CASH RECEIPTS/REVENUES AND BUDGET FOR 2011-2012 543 BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE CITY OF DOVER, IN COUNCIL MET: 544 The amount hereinafter named aggregating Three Hundred Ten Thousand, Six Hundred Thirty-Five 545 dollars ($310,635) or so much thereof as may be necessary are hereby appropriated from current 546 revenues and other funds for the use by several departments of the Municipal Government 547 for the fiscal year beginning July 1, 2011 and ending June 30, 2012: 548 REVENUES 549 ORIGINAL REVISED 550 2011/12 2011/12 551 BUDGET BUDGET 552 BEGINNING BALANCE $ 16,336 $ 30,168 553 REVENUES 554 STATE GRANT 259,801 280,467 555 FEDERAL GRANT 2,750 - 556 TOTAL REVENUES 262,551 280,467 557 TOTAL BEGINNING BALANCE AND REVENUE $ 278,887 $ 310,635 558 EXPENSE SUMMARY 559 ORIGINAL REVISED 560 2011/12 2011/12 561 EXPENSES BUDGET BUDGET 562 PROGRAM EXPENSES $ 41,935 $ 22,482 563 OFFICE SUPPLIES - 8,899 564 PRINTING/DUPLICATING - 5,933 565 POSTAGE - 500 566 BOOKS 119,216 112,053 567 FURNITURE - 4,907 568 AUDIO VISUAL SUPPLIES 55,000 70,000 569 TRAINING/CONF/FOOD/TRAV 5,000 2,915 570 CONTRACTUAL SERVICES 18,650 4,150 571 COMPUTER HARDWARE 20,000 78,796 572 SUBTOTAL EXPENSES STATE GRANTS 259,801 310,635 573 FEDERAL GRANTS 574 PROGRAM EXPENSES/SUPPLIES 2,750 - 575 SUBTOTAL EXPENSES FEDERAL GRANTS 2,750 - 576 CURRENT YEAR BALANCE 16,336 - 577 TOTAL CURRENT YEAR BALANCE AND EXPENSES $ 278,887 $ 310,635 578 The City Manager is hereby authorized, without further approval of the City Council, to make inter- 579 departmental transfers of up to five percent of the amount hereinafter appropriated to any department 580 with the exception of any transfers prohibited by City Procedure #F306.

DRAFT 2011-2012 BUDGET ORDINANCES - CONTINUED 581 POLICE GRANTS 582 REVENUES AND BUDGET FOR 2011-2012 583 BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE CITY OF DOVER, IN COUNCIL MET: 584 The amount hereinafter named aggregating Seven Hundred Forty Three Thousand Six Hundred Ninety Six dollars ($743,696) or so 585 much thereof as may be necessary are hereby appropriated from current revenues and other funds for the use by the City of Dover 586 Economic Development for the fiscal year beginning July 1, 2011 and ending June 30, 2012: 587 REVENUES 588 POLICE BYRNE/JAG FEDERAL 589 GRANTS GRANTS FORFEITURE TOTAL 590 BEGINNING BALANCE $ 152,223 $ - $ 263,181 $ 415,404 591 REVENUES 592 CJC GRANT 35,876 - - 35,876 593 EIDE GRANT - - - - 594 SALLE GRANT - - - - 595 SLEAF GRANT - - - - 596 BYRNE/JAG GRANTS - 136,931 - 136,931 597 FEDERAL FORFEITURE GRANTS - - - - 598 COPS HIRING RECOVERY PROG - - 155,485 155,485 599 TOTAL REVENUES 35,876 136,931 155,485 328,292 600 TOTAL BEGINNING BALANCE AND REVENUES 188,099 136,931 418,666 743,696 601 EXPENSE SUMMARY 602 POLICE BYRNE/JAG FEDERAL 603 EXPENSES GRANTS GRANTS FORFEITURE TOTAL 604 CJC GRANT EXPENSE $ 35,876 $ - $ - $ 35,876 605 EIDE GRANT EXPENSE 30,032 - - 30,032 606 SALLE GRANT EXPENSE 72,537 - - 72,537 607 SLEAF GRANT EXPENSE 49,654 - - 49,654 608 BYRNE/JAG GRANT EXPENSE - 136,931 - 136,931 609 FEDERAL FORFEITURE GRANT EXPENSE - - 263,181 263,181 610 COPS HIRING RECOVERY PROG - - 155,485 155,485 611 TOTAL GRANT EXPENSES 188,099 136,931 418,666 743,696 612 CURRENT YEAR BALANCES (0) - (0) (0) 613 The City Manager is hereby authorized, without further approval of the City Council, to make inter- 614 departmental transfers of up to five percent of the amount hereinafter appropriated to any department 615 with the exception of any transfers prohibited by City Procedure #F306.

ACTION FORM PROCEEDING: Legislative, Finance, and Administration Committee DEPARTMENT OF ORIGIN: Assessor’s Office DATE SUBMITTED: 11/14/2011 PREPARED BY: Cheryl Russell, Assessor SUBJECT: Proposed Amendments to Section 47 - General assessment; levy on utility property, of the City of Dover Charter, and Chapter 102 – Taxation, Section 102-1 – Valuation and assessment, of the Dover Code. REFERENCE: Cost Savings RELATED PROJECT: APPROVALS: Council; State Legislature EXHIBITS: 1 - Proposed Resolution No. 2011-12; 2 – Proposed Ordinance #2011-31; 3 - City Solicitor Opinion EXPENDITURE REQUIRED: N/A AMOUNT BUDGETED: N/A FUNDING SOURCE (Dept./Page in CIP & Budget): N/A TIMETABLE: Charter Amendments to become effective upon State Legislature Approval. RECOMMENDED ACTION: Staff recommends adoption of Proposed Resolution No. 2011-12 and Proposed Ordinance No. 2011-31. BACKGROUND AND ANALYSIS Section 47 of the Charter refers to the Assessor as being elected. The amendment to the first paragraph more accurately describes the assessor’s appointment. The purpose of the amendments to paragraph two (2) are to remove the language that dictates that the re-assessment be conducted every three years. This allows for the general statement that City Council may direct that a re-assessment be conducted at the pleasure of Council; it also allows Council the opportunity to make amendments to Chapter 102, section 102-1 of the Dover Code of ordinances without future Charter Amendments. Because revaluations are generally conducted by mass appraisal companies, not appraisers, this amendment updates the language, as well as allows for the assessor or assessors to conduct the reassessments, if they are sufficiently staffed to do so. The purpose of the amendments to the Dover Code are to change the length of time between revaluations from three (3) years to five (5) years and to add the statement “unless otherwise directed”. This mandates that the Assessor should budget for a revaluation every five (5) years. It also enables the Council to the Assessor to conduct or plan that the city conduct a revaluation of the properties within the City of Dover at their discretion. This language does not mandate that a revaluation only be allowed every five (5) years. It is only requiring that we budget for it every five (5) years unless otherwise directed. This amendment updates the language in the ordinance as well as allows for the assessor or assessors to conduct the reassessments, at full staff. These amendments have been approved by the City Solicitor.

City of Dover MAYOR AND COUNCIL 1 PROPOSED COUNCIL RESOLUTION NO. 2011-12 2 BE IT RESOLVED BY THE MAYOR AND COUNCIL OF THE CITY OF DOVER, IN COUNCIL 3 MET: 4 That the Mayor and Council have determined that the Charter of the City of Dover, should be 5 amended by increasing the length of time between valuation and assessment of real property from 6 every three years to every five years. Therefore, the Mayor and Council of the City of Dover 7 respectfully request the General Assembly of the State of Delaware to amend Article IV - Financial 8 Affairs, Section 47 - General assessment; levy on utility property, of its Charter, which amendments, 9 if adopted by the General Assembly, would be as follows: 10 CITY OF DOVER CHARTER - ARTICLE IV - FINANCIAL AFFAIRS 11 Section 47 - General assessment; levy on utility property 12 Sec. 47. - General assessment; levy on utility property. 13 The city shall cause to be made a true, just, and impartial valuation and assessment of all real 14 property within the city, locating each parcel of real property by street and number or other 15 description. The valuation and assessment shall be made every three years by an The assessor 16 or assessors who shall be elected appointed by the council at its annual meeting by majority vote 17 thereof. Before entering upon the duties of office, an assessor shall be sworn or affirmed by the 18 mayor to perform the duties of the assessor's office with fidelity and without favor or partiality. 19 Whenever council shall direct, as set forth in chapter 102 - taxation, article I - in general, section 20 102-1 - valuation and assessment, of the Dover Code of Ordinances, all real property in the City of 21 Dover shall be reassessed by an outside appraiser mass appraisal company chosen by Council 22 every three years. This assessment shall be in lieu of the valuation and assessment made by an the 23 assessor or assessors elected appointed by council as described hereinabove and in lieu of the 24 assessor's duties described hereinabove. P.O. Box 475 ˜ Dover, Delaware ˜19903 Community Excellence Through Quality Service

Proposed Council Resolution No. 2011-12 Page 2 25 In addition to the annual assessment, t The assessor or assessors shall include supplemental 26 assessments made annually for the purposes of (1) adding property not included in the last 27 assessment or (2) increasing or decreasing the assessment value of property which was included in 28 the last annual assessment. 29 The annual assessment date for all real property shall be January 1st of each year. The assessment 30 of all property shall be at its true value in money as of the assessment date. True value in money shall 31 be the fair market value. 32 The general assessment shall be set down by the assessor or assessors in two (2) or more copies, as 33 the council shall direct, and shall be delivered to the council as soon as made. The council shall, on 34 the first day of April of each year, cause a copy of the general assessment to be posted in two public 35 places in the city for ten days. The assessor shall notify the public of an appeal deadline of 30 days 36 from the date of general assessment posting. 37 The council may direct that appeals from any assessment be heard by a committee, known as the 38 board of assessment appeals, of not less than three members appointed by the council. The board of 39 assessment appeals shall sit at a stated place and time to hear the appeals of all taxpayers dissatisfied 40 with the assessment of their properties, shall collect such information as they consider proper and 41 necessary, and shall report their findings. 42 Notice of the place and time that the board of assessment appeals will sit to hear appeals shall be 43 posted with the general assessment in two public places for a period of ten days. Notice of the 44 posting of the copies of the general assessment and of the place and time of the meetings of the board 45 of assessment appeals shall be published in at least one issue of a newspaper published in the city. 46 The assessment as revised and adjusted by the board of assessment appeals or superior court shall 47 be the basis for the levy and collection of taxes for the city. 48 The council shall have the right to levy and collect taxes on gas mains, telephone, telegraph, 49 communications systems, or trolley poles or other erection of like character within the limits of the 50 city, together with the wires thereon strung; and to this end the council may at any time direct the 51 same to be included in or added to the general assessment. 52 Nothing contained in this section shall be deemed or held to invalidate or otherwise effect any 53 assessment made prior to the approval of this section or any tax levied thereunder. 54 (Amd. of 7-12-2005 (S.B. 126); Amd. of 7-8-2009 (S.B. 165, § 21))

CITY OF DOVER PROPOSED ORDINANCE #2011-31 1 BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE CITY OF DOVER, IN COUNCIL 2 MET: 3 That Chapter 102 Taxation, Article I - In General, Section 102-1 - Valuation and assessment, be amended 4 by inserting the text indicated in bold, blue, underlined italics and deleting the text indicated in bold, red 5 strikeout as follows: 6 Sec. 102-1. - Valuation and assessment. 7 Section 47 of the Charter provides that an impartial valuation and assessment of all real property within the 8 city shall be conducted by the city assessor or assessors every third year. The council may also direct that 9 in lieu of the reassessment and valuation by the city assessor, such a reassessment and revaluation may shall 10 be done by the assessor or assessors or an outside appraiser mass appraisal company chosen by the 11 council. 12 Pursuant to section 47 of the Charter, c Commencing with the year 2010 and every ninth fifth year 13 thereafter, unless otherwise directed, the revaluation and reassessment of all real property shall be 14 conducted, under the supervision of the assessor or in conjunction with the assessor, by an outside 15 appraiser mass appraisal company chosen by the council. All property shall be valued as to its status; as 16 of its ownership; and as of its current market value as of the January 1 assessment date. and shall reflect 17 fair market value. 18 ADOPTED: * 19 SYNOPSIS 20 This amendment changes the revaluations from every three (3) years to every five (5) years. 21 22 Actions History 23 November 14, 2011 - Scheduled for Consideration by Legislative, Finance, and Administration Committee 24 S:\ORDINANCES\2011\Draft\Ordinance 2011-31 - Ch 102 - Taxation, Art IV - Valuation and Assessment.wpd

ACTION FORM PROCEEDING: Legislative, Finance & Administration Committee DEPARTMENT OF ORIGIN: Finance DATE SUBMITTED: 10/28/11 PREPARED BY: Donna Mitchell, Controller/Treasurer SUBJECT: Bank Qualified Loan REVIEWED BY: Scott Koenig, Interim City Manager APPROVALS: Committee & Council EXHIBITS: Analysis of Proposals for Bank Qualified Loan EXPENDITURE REQUIRED: Additional Debt Service – estimated $250,000 annually; will vary based on interest rates at the time of closing and during construction. AMOUNT BUDGETED: As attached TIMETABLE: Closing in December 2011 – January 2012, after Council approval RECOMMENDED ACTION: Staff recommends acceptance of PNC Bank proposal and preparation of an Authorizing Resolution for Council approval. The City of Dover Finance Department solicited proposals from six local banks to finance the following projects as presented in the June 6, 2011 Budget presentation. 1. Dover Library $2,700,000 2. Street Repaving Projects 1,750,000 3. Sprinkler System – City Hall 220,000 4. Issuance Cost & Legal Fees 30,000 Total $4,700,000 Item #3 was originally budgeted in the Capital Investment Plan to be completed over two years in FY14 and FY15. We are moving this project up so the sprinkler system can be installed in City Hall in conjunction with the Library project so as to have the proper fire protection required by our Code. The two year Street Program has been reduced to keep the amount of proposed financing in line with the original plan. Loan Structure During the construction phase of the Library project interest only is to be paid on the draws made during construction. Once the project is completed the City has the option on continuing the variable rate loan or converting the loan to a term loan. The initial term will be seven years (our preference) with a twenty-year amortization payment. At the end of the seven years the loan will be refinanced for the remaining term or a term that would enable to City to keep the debt service payments budget neutral. The current General Fund debt service will be fully paid in FY17. Recommended Action Staff has reviewed all proposals and is recommending PNC Bank based on the comparative analysis attached. Wells Fargo contacted the Department to let us know they would not be submitting a proposal.

2 of 2 City of Dover Analysis of Proposals for Bank Qualified Loan 10/26/2011 Loan Structure ‐ Construction w/ draw downs; Interest only payable during construction; Pay down on principal when current Library sold Interest rates based on current tax laws for tax‐exempt financing M & T Bank TD Bank PNC Bank WSFS Citizens Term of Note Draw down period w/monthly interest 24 Months 24 Months 18 Months 12 Months Following Term 5 Years 5, 7, or 10 Years 3, 5, or 7 Years 7 Yrs from date of Maturity date note Amortization at end of construction period 15 Years 20 Years 20 Years 19 Years 20 Years 5 Year due on Balloon Payment unless new terms agreed maturity Call Provisions 5th, 10th, & 15th yrs Rate of Interest per Annum Daily LIBOR + 1.0%(3 London Inter Bank Offered Rate (LIBOR) 30 day LIBOR + yr), 1.2%(5 yr), or 30 day LIBOR + 3.25% 30 day LIBOR + 2.0% 1.4%(10 yr) 2.50% Tax‐exempt rate Not included 69% 65% 68% Indicative rate ‐ Construction Period only Currently 2.41% Currently 1.55% Currently 0.83% Currently 1.86% Term Note Option 1 ‐ Variable Rates 1.55% Three (3) Year (fixed rate option w/hedge) 1.94% Five (5) Year (fixed rate option w/hedge) 2.57% 2.42% 3.26% Seven (7) Year (fixed rate option w/hedge) 2.89% 2.75% 3.52% Ten (10) Year (fixed rate option w/hedge) 3.17% Option 2 ‐ Fixed Rates Fixed during 5 year term Currently 2.61% 4.04% Three (3) Year Five (5) Year 2.81% Seven (7) Year 3.13% Ten (10) Year 3.46% Fixed rates protected by Interest Rate Swaps Yes Yes Pre‐payment penalty Yes, during 5 yr term Only if unwind hedge Only if unwind hedge Only if unwind hedge 180 days from FY 180 days from FY 180 days from FY Financial Reporting Covenants ‐ Audited close Annually close close 30 days after Operating Budget approval Other Detail breakdown of road construction projects due at closing, review of all plans, budgets, and approvals; construction monitoring by bank real estate group Fees & expenses: $1,000 if borrower Borrower would Banks Legal documentation review costs handles all cover all associated $25,000 estimate documents Capped at $10,000 costs plus out of pocket .50% of total loan or Bank commitment fees $23,500 Five (5) Years $11,750 Seven (7) Years $17,625 Ten (10) Years $23,500 City Legal fees $20,000 ‐ $25,000 $10,000 ‐ $12,500 $20,000 ‐ $25,000 $10,000 ‐ $12,500 Additional Conditions during term of loan City deposit account Governing Law Delaware Delaware Delaware Delaware