Attachment

LEGISLATIVE, FINANCE, AND ADMINISTRATION COMMITTEE AGENDA July 11, 2011 - 6:00 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. Proposed Amendment to Investment Policy 2. Discussion - Fiscal Year 2011 Audit Program 3. Additional Downtown Security Cameras (State Homeland Security Grant Program) 4. Proposed Ordinance #2011-17 - Chapter 102 - Taxation, Article III - Realty Transfer Tax and Article IV - Abatement of Real Estate Taxes (Tax Abatement for the Downtown Area - Reconsider Sunset Portion) 5. Discussion - 2010 Annual Income and Expense Report Form 6. Discussion - Economic Development Administration by the Mayor 7. Public Comment Period 8. Adjournment by 7:00 P.M. /tm S:\AGENDAS & MINUTES\Committee-Agendas\2011\07-11-2011 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.

City of Dover, DE Investment Policy Statement Dated June _____, 2011

1.0 PolicyGoverning Authority It is the policy of the City of Dover to invest public funds under its control in a manner that will provide the highest investment return consistent with the maximum safety of principal, while meeting cash flow needs of the City. The City investment program shall conform to all state and local statutes governing the investment of public funds. For the record, there are currently no state statutes or regulations related to the City’s investments. 2.0 Scope This Iinvestment pPolicy Statement (the “Policy”) applies to all financial assets of the City of Dover for which the City retains direct or indirect daily control. Funds for which the City has retained outside funds manager(s) may shall also be governed by these policies this Policy and/or a separate agreement establishedor, in the case of bond proceeds, related governing bond documents, including any Trust Indentures. 2.1 Accounts 2.1.1 Cash and Liquidity Accounts: The majority of the City’s cash balance available for investment is maintained in the cash and liquidity accounts. These accounts will be managed and invested by investment managers, selected by the City Council through competitive bid, in order to maximize the return to the City while, at the same time, providing for safety of principal and sufficient liquidity for the City to meet its cash needs. The City will manage its short-term (12 month) investments to ensure sufficient liquidity and prevent their premature sale for the purpose of covering expenditures. Short-term investments should mature at face value in sufficient amounts to meet any liquidity needs. 2.1.2 Reserve Cash (Intermediate) Account: To the extent cash is not expected to be needed on short notice, the City Council will direct the funding of a third partshall invest such funds in the Reserve Cash Account. This fund shall be managed and invested by an investment manager or managers, selected by the City Council after a competitive bid, in order to maximize the return on said money to the City while providing for the safety of principal. The City will manage its intermediate investments to ensure they are made under circumstances and in amounts in which the City would not be forced to liquidate them at a loss. All of the City of Dover’s funds are accounted for in its Comprehensive Annual Financial Report. Those funds to which this investment policyPolicy applies include (with the exceptions noted in the preceding paragraph as well asexcluding the Deferred Compensation Plan): 2.2 Funds 2.2.1 General Fund 2.2.2 Capital Project Funds 2.2.3 Special Revenue Funds City of Dover, Investment Policy Page 2 of 17 Dated June ____, 2011

2.2.4 Enterprise Funds 2.2.5 Internal Service Funds 2.2.6 Trust and Agency Funds 2.2.7 (Any new fund created by the City Council, unless specifically exempted) 3.0 Objectives The primary objectives of the City of Dover’s investment activities, in order of importance shall be: 3.1 Safety Preservation of principal is the foremost objective of the investment program. To attain this objective, funds shall be diversified among securities of high credit quality and liquidity, dispersion and/or diversification shall be employed so that risk of loss of principal is minimized. 3.2 Liquidity The City’s investments shall be made for such periods as to enable the City to meet all operating requirements that may be scheduled or reasonably anticipated. 3.3 Return on Investments A goal of the investment program shall be to maximize income investment return within the constraints of Sections 3.1 and 3.23. 3.3 Liquidity The City’s investments shall be made for such periods as to enable the City to meet all operating requirements that may be scheduled or reasonably anticipated. 4.0 Delegation of Authority Authority to manage the City of Dover’s investment program is derived from: this investment policyPolicy, which is approved by City Council, and “Dover Code, Article IV, Section 42" (attachment B) which states in part that “The City Treasurer shall be the custodian of all of the City funds . . . ”.” (Note: the City’s Finance Director is also the City Treasurer). The Finance Director/City’s Treasurer shall: 1) Review the City’s investment policy this Policy annually and recommend changes, if any, to the policy to City Council; 2) Be charged with implementing the Ppolicy, and may delegate authority to make investments to an investment advisor. The Finance DirectorController/Treasurer shall be responsible for all investment transactions and shall establish controls to regulate the activities of the delegateinvestment advisor, if any. 3) Ensure that records of the City’s investment activities are kept for ten years. 5.0 Prudence, Ethics and Conflicts of Interest The delegateAny official of the City or investment advisor/manager empowered to make investments on behalf of the City of Dover shall comply with the following: City of Dover, Investment Policy Page 3 of 17 Dated June ____, 2011

5.1 “Prudent Person” Rule They shall make iInvestment decisions shall be made with the judgment and care which persons of reasonable intelligence, under circumstances prevailing at the time the investment is made, would exercise in the management of their own investments assuming that their objectives are those shown in Section 3.0 of this policy. 5.2 Ethics and Conflict of Interest The delegate authorized to make City investments shall act at all times in an ethical manner, and shall not engage in activity that could impair or be perceived to impair their ability to make impartial investment decisions. They shall disclose to the Mayor and City Council any material interests in financial institutions with which the City has financial dealings, and which may be related to the performance of the investment program. Employees and officers shall refrain from undertaking personal investment transactions with the same individual(s) with whom business is conducted on behalf of the City. 6.0 Authorized Institutions and Dealers The City of Dover Finance Director/Treasurer shall maintain a list of financial institutions and other entities that are authorized to provide investment and/or depository services to the City. An annual review of the financial condition and registrations will be conducted by the Finance Director/Treasurer. The investment manager shall provide a current audited financial statement to the City annually, which will be kept on file in the Finance Department. All broker/dealers that desire to become qualified for investment transactions with the City shall meet the following: 1. Primary dealers and regional dealers that qualify under Securities and Exchange Commission Rule 15C3-1 (uniform net capital rule) 2. Capital of at least $25,000,000 or capital of $5,000,000 for firms incorporated in the State of Delaware 3. Registered as a dealer under the Securities Exchange Act of 1934 4. Member of the Financial Industry Regulatory Authority (FINRA) 5. Registered to sell securities in the State of Delaware 1. Engaged in the business of effecting transactions in U.S. government, federal agency, and corporate securities for at least five (5) consecutive years 6. To the extent the City utilizes the services of an outside Investment Advisor, it shall be the responsibility of the Investment Advisor to maintain an approved list of brokers. 7.0 Safekeeping and Custody To ensure that securities are deposited in an eligible financial institution prior to the release of funds, all trades of marketable securities will be executed by delivery vs. payment (“DVP”). Further, all securities will be held by an independent third-party custodian, in the name of the City, and evidenced by safekeeping receipts in the City’s name. The custodian shall provide daily confirmation of held securities as well as a monthly transactions and holdings City of Dover, Investment Policy Page 4 of 17 Dated June ____, 2011

report. 87.0 Authorized Investments and Trading of Securities The Finance DirectorController/Treasurer or his/her authorized delegate may invest only in the following types of securities listed below. The maximum stated maturity of any security shall be limited to 10 years at time of purchase, unless otherwise stated. For Agency mortgage backed securities, the maximum maturity shall be defined as the weighted average life (“WAL”). WAL is a convention that estimates the expected weighted amount of time, in years, for the principal amount of an issue to be fully paid. For this sector, WAL shall be limited to 10 years, measured at the original purchase date, provided by Bloomberg Financial Markets. 78.1 United States Government Securities 8.1.1 Marketable securities issued by the U.S. Government and supported by the full faith and credit of the U. S. Treasury either by statue or an opinion of the attorney general of the United States.. Up to 100% of the portfolio may be invested in this sector. 78.2 Government Agency Securities 8.2.1 Debt securities issued by government-sponsored enterprises (“GSE”), federal agencies, and federal financing banks; the maximum stated maturity of any investment in this sector shall be limited to 5 years at time of purchase. Up to 100% of the portfolio may be invested in this sector. , and international institutions part of whose capital stock has been subscribed for by the United States. 78.3 Certificates of Deposit and, Time Deposits, and Bankers Acceptances 78.3.1 Domestic Institutions: Issued or endorsed by a domestic bank, or a savings and loan association, organized and supervised under federal or any state lawsthe laws of the United States, or any of its branches located in the United Kingdom, the Bahamas, or the Cayman Islands and denominated in U.S. dollars; provided, however, that deposits are fully insured or guaranteed by the Federal Deposit Insurance Corporation (“FDIC”). If not insured by the FDIC::  The banking institution has must have assets of not less than $5 billion; and  The banking institutionIssuers is must have a short-term rating of A-1 by Standard & Poor’s and P1 by Moody’s and a long-term rating of AA rated not lower than “B” by Fitch, Inc. (formerly Thomson’s Bank Watch Service). by Standard & Poor’s or Aa by Moody’s. The maximum stated maturity of any investment in this sector shall be limited to 5 years at time of purchase. This sector shall not exceed 25% of the total portfolio. No single issuer shall exceed 5% of the City’s portfolio. City of Dover, Investment Policy Page 5 of 17 Dated June ____, 2011

78.3.2 Delaware-Domiciled Institutions: The Cash Account, and only the Cash Account, may also be invested in Certificates of Deposit, Time Deposits, and Bankers Acceptances iIssued by or endorsed by any bank or savings association domiciled in the State of Delaware and organized and supervised under federal or State of Delaware banking laws which does not meet the requirements of Section 87.3.1 hereto; provided, however, that:  For each of the latest two years, the bank or association has had a return on total average assets of 0.50% or greater and an average capital ratio (defined as total equity capital to total assets) of at least 1 to 20, or the instrument is secured as set forth in Section 8, “Collateralization of City Deposits,“” hereto; and  Not more than the lesser of $10 million or 25% of an issuer’s total equity capital, may be invested in any one issuer. (Investments due to mature in one business day may be excluded from the computation of this percentage.)  The Board expressly affirms that, consistent with these guidelines, Delaware banks and savings associations should be considered as a source of investment.  The maximum stated maturity of any investment in this sector shall be limited to 5 years at time of purchase. This sector shall not exceed 20% of the total portfolio. No single issuer shall exceed 5% of the City’s portfolio. 87.4 Corporate Debt Instruments Such instruments include commercial paper ,bankers’ variable rate master demand notes, andacceptances, and non-convertible senior debt securities (bonds and debentures). ; provided, however, that: 87.4.1 Any such instrument must be issued by a U.S. corporation; 8.4.2 No single issuer shall exceed 5% of the City’s portfolio. 87.4.32 Commercial Paper shall be limited to a final stated maturity of 270 days. This sector shall not exceed 25% of the total portfolio. Commercial paper investments Issuers shall at the time of purchase must be rated at least “A-1" by Standard & Poor’s (S&P) and/or “P-1" by Moody’s Investors Service (“Moody’s), and the senior long-term debt of the issuer must be rated not lower than “A” by S&P and/or “A” by Moody’s. 78.4.4. Bankers’ Acceptances shall be limited to a final maturity of 365 days. This sector shall not exceed 25% of the City’s Portfolio. Issuers shall be rated at least A-1 by Standard & Poor’s and P1 by Moody’s. 8.4.53 Corporate bonds and debentures shall be limited to a final stated maturity of 5 years. This sector shall not exceed 50% of the total portfolio. Investments in corporate bonds and debentures mustIssuers shall hold a long-term rating of be rated at the time of purchase at least “AA” by S&P and/or “Aa” by Moody’s. City of Dover, Investment Policy Page 6 of 17 Dated June ____, 2011

7.4.3 Any such instrument may be backed fully by an irrevocable, unconditional letter of credit issued by a bank which meets the requirements of Section 7.3.1 or Section 7.3.3 hereto. The security will count as a holding of the letter of credit provider for purposes of applying the percentage limitations outlined in Section 7.4 hereto. 87.5 Repurchase Agreements The underlying securities collateral shall consist of U.S. government and/or government agency securitiesGSE securities , certificates of deposit, commercial paper or bankers acceptances; provided, however, that: 87.5.1 All repurchased transactions agreements must be governed by a written master repurchase agreements; 87.5.2 Agreements will be entered into only with respect to underlying securities in which the investment manager may otherwise invest as described above, and only with a recognized U.S. Government/broker or a bank which meets the requirements set out under paragraph Section 87.3.1 or 8.3.23 above; 87.5.3 In the case of repurchase collateral held in book-entry form in the Federal Reserve System, all deliveries of sSecurities must be made, for the transfer thereof, through the Federal Reserve book-entry system to the account designated by the investment manager for such purpose. Securities held in certificated form must be delivered to the investment manager or a custodian as directed by the investment manager.; and 78.5.4 Any collateral employed under this paragraph shall be counted towards the applicable maximum limits set forth within these guidelines for such type of investment, and such collateral shall be valued at market at not less than 1032 percent of the maturity value of the agreement and marked-to-the-market as requested by the investment manager. 8.5.5 Repurchase agreements shall be limited to a maximum maturity of 90 days from date of purchase. No single issuer shall exceed 25% of the City’s portfolio. 7.6 Reverse Repurchase Agreements The investment manager may enter into reverse repurchase agreements which involve the sale of money market securities held by the City, with an agreement to repurchase the securities at an agreed upon price, date and interest payment, so long as: 7.6.1 The agreement is entered into only with a recognized U.S. government broker/dealer or a bank which meets the requirements set out under Section 7.3.4 above who is acting as a principal to the agreement; 7.6.2 The City’s securities are sold at not less than 98% of their fair market value including all accrued interest; and City of Dover, Investment Policy Page 7 of 17 Dated June ____, 2011

7.6.3 The investment manager marks-to-market as appropriate. 87.67 Registered Investment Companies (Money Market Funds) 8.6.1 Money market funds shall not be permitted to invest in or hold securities other than those approved in this Policy. No single fund shall exceed 25% of the City’s portfolio. Money market funds shall be rated AAAm by Standard & Poor’s. A current prospectus must be obtained before investing in any money market fund, and current holdings reports must be maintained at least each month.The money market fund(s) selected by the investment manager shall be consistent with the investment quality guidelines as stated in this document. 87.78 Mortgage-Backed Securities 8.7.1 Only the Cash Reserve (Intermediate) Account may invest in Mortgage-Backed Securities. The portfolio may have a total investment of no more than 20 percent, valued at market, in AAA-rated Mortgage-backed securities issued by the following: Government National Mortgage Association (GNMA), Federal National Mortgage Association (FNMA) or Federal Home Loan Mortgage Association (FHLMC). mortgage-backed securities in the form of pass-throughsThis sector shall not exceed 50% of the total portfolio. . 87.89 Municipal Obligations 8.8.1 Taxable and tax-exempt securities issued by state and local governments and public authorities in the United States.S.. The maximum stated maturity of any investment in this sector shall be limited to 5 years at time of purchase. This sector shall not exceed 30% of the City’s portfolio. No single issuer shall exceed 5% of the City’s portfolio. Issuers shall be rated at least AA by Standard & Poor’s and Aa by Moody’s. 87.109 State of Delaware Investments Pool 87.910.1 Delaware Local Government Investment Pool (DELGIP) -The investment in this pool is permitted in relation to the City's cash flow and the guidelines set forth by the State of Delaware. The investment in this pool will not exceed 25% of the total funds available and will be monitored by the City's Finance Department on a monthly basis. 87.910.2 Delaware Local Government Retirement Investment Pool (DELRIP) The investment in this pool is permitted in relation to the City's Post-Retirement Benefits Fund. The investment in this pool will not exceed 25% of the total funds available and will be monitored by the City's Finance Department on a monthly basis. 78.101 Trading Securities 87.101.1 The Financial DirectorController/Treasurer is here by authorized to buy/sell the securities when the net result will generate the additional revenues for the City of Dover, Investment Policy Page 8 of 17 Dated June ____, 2011

Cityprior to their stated maturity date in the following circumstances: 1. . A security with declining credit may be sold prior to its maturity to minimize loss of principal; 2. A security swap may be executed if it would improve the quality, yield, or target duration of the portfolio; 1.3. Securities may be sold to provide needed liquidity 87.121 Internal Control on such transactions 87.112.1 An investment report will be provided to the Council on a quarterly basis. 87.121.2 All investment reporting documents will be provided to the independent auditors. 87.112.3 The Investment records will be kept on by the City records for ten (10) years. 87.112.4 The trading shall not involve any hedge, derivatives and/or borrowing funds for trading purposes. 98.0 Collateralization of City Deposits If the City deposits any funds in any financial institution, those funds will be subject to the following collateralization requirements. The financial institution shall: 89.1 Collateralize the City’s daily ledger balance(s) if, for any quarter during the most recent eight quarters the bank has not met both of the following two criteria:  Return on total average assets of 0.50 percent or greater.  Average capital ratio (total equity to total assets) of 5.00 percent or greater. 89.2 If either criterion in paragraph 8.1 is not satisfied collateral must be pledged and shall consist of one or more of the following securities:  U.S. Government securities.  U.S. Government agency securities  Federal Home Loan Board letters of credit  State of Delaware securities  Securities of a political subdivision of the State of Delaware with a Moody’s rating of “A” or better 98.3 Ensure that the securities pledged as collateral (except for Federal Home Loan Board letters of credit) have a market value equal to or greater than 1032 percent of the ledger balance(s) in the account(s) marked to market each day. 98.4 Ensure that securities pledged as collateral are housed at the Federal Reserve Bank or a mutually agreed upon third party depository. (The trust department of the winning vendor will not be acceptable.) City of Dover, Investment Policy Page 9 of 17 Dated June ____, 2011

98.5 Provide reports on a monthly basis to the City Finance Department detailing the collateral pledged. 98.6 Provide a Call Report (Consolidated Report of Condition and Income, FFIEC 031) on a quarterly basis to the City Finance Department. 109.0 Policy Considerations If securities owned by the City are downgraded by either Standard & Poor’s or Moody’s to a level below the quality required by this Policy, it shall be the City’s policy to review the credit situation and make a determination as to whether to sell or retain such securities in the portfolio. If a security is downgraded two grades below the level required by the Policy, the security shall be sold immediately. If a security is downgraded one grade below the level required by this Policy and matures within 6 months, the security may be held to maturity. The City Treasurer may determine to sell the security if it is determined that there is a probability of default prior to maturity. If a decision is made to retain a downgraded security in the portfolio, its presence in the portfolio will be monitored and reported monthly to the City Treasurer. 112.0 Internal Controls The investing activities of the City of Dover shall be reviewed annually as part of the annual audit (attachment C) by a Certified Public Accountant, to assure that compliance with investment policies and procedures is maintained. On a monthly basis, a "balances report" will be prepared by one finance person and the balances will be cross-checked with the General Ledger balances by another finance person. Any differences will be reconciled on a monthly basis. All reports and reconciliations (if any) will be provided to the external auditors at the time of audit. The Treasurer is responsible for establishing and maintaining an internal control structure designed to ensure that the assets of the City are protected from loss, theft, or misuse. The Treasurer shall also establish a process for an annual independent review by an external auditor to assure compliance with policies and procedures. The internal controls shall address the following:  Control of collusion  Separation of transaction authority from accounting and recordkeeping  Custodial safekeeping  Prohibition of physical delivery securities  Clear, written delegation of authority to subordinate staff members  Written confirmation of transactions for investments and wire transfers 123.0 Performance Standards The City of Dover’s investment decisions shall be made with the objective of obtaining a rate of return commensurate with the investment risk constraints and the cash flow needs. No formal targeted market yield is adopted, but tOn a quarterly basis, the Finance DirectorController/Treasurer shall compare the City’s City’s portfolio results with 90-day City of Dover, Investment Policy Page 10 of 17 Dated June ____, 2011

U.S. Treasury bill for the cash account and the one-year U. S. Treasury Bill for the reserve account in determining the effectiveness of the investment program accountagainst the Merrill Lynch 0-5 Year U.S. Treasury Index, in terms of time-weighted total return and average duration for the period under review.. 134.0 Reporting At the end of each calendar quarter, the Finance DirectorController/Treasurer will submit a report of all quarter-ending investments to the Mayor and City Council. Reports shall include the following:  Listing of individual securities held as of last day of reporting period, sorted by sector  Par, market, and amortized cost values of each security  Coupon, current yield, and final stated maturity date of each security 145.0 Investment Policy Adoption The City of Dover’s investment policy will be adopted by the City Council after review and recommendation of the Legislative and Finance Committee. The policy will be reviewed at least once every two years by the Legislative and Finance Committee, which is charged with considering the existing policy and any recommendations to modify the policy. Any modifications to the policy must be approved by the City Council. LEGEND 1. Original approval by City Council - November 14, 1988 2. Revised policy approved by City Council - March 7, 2005 3. City Council Approved with No Changes – April 14, 2008 City of Dover, Investment Policy Page 11 of 17 Dated June ____, 2011

ATTACHMENT A GLOSSARY AGENCIES: Federal agency securities, otherwise known as “Government Sponsored Enterprises.” CERTIFICATE OF DEPOSIT (CD): A time deposit with a specific maturity evidenced by a certificate. Large denomination CD's are typically negotiable. BANKERS ACCEPTANCE: A short-term credit investment which is created by a non-financial firm and whose payment is guaranteed by a bank. COLLATERAL: Securities, evidence of deposit or other property which a borrower pledges to secure repayment of a loan. Also refers to securities pledged by a bank to secure deposits of public monies. COMMERCIAL PAPER: An unsecured obligation issued by a corporation or bank otto finance its short-term credit needs. Maturities typically range from 1 day to 9 monthsone (1) to 270 days. COMPREHENSIVE ANNUAL FINANCIAL REPORT (CAFR): The official annual report for the City of Dover. It includes five combined statements for each individual fund and account group prepared in conformity with GAAP. It also includes supporting schedules necessary to demonstrate compliance with finance-related legal and contractual provisions, extensive introductory material, and a detailed Statistical Section. CORPORATE BONDS: A debt security issued by a corporation based in the United States of America. Such bonds usually have a par value of $1,000, have a term maturity, and are traded on a major exchange. DEALER: A dealer, as opposed to a broker, acts as a principal in all transactions, buying and selling for his own account. DIVERSIFICATION: Dividing investment funds among a variety of securities offering independent returns, in an attempt to limit risk. FEDERAL CREDIT AGENCIES: Agencies of the Federal government set up to supply credit to various classes of institutions and individuals, e.g., S&L's, small business firms, students, farmers, farm cooperatives, and exporters. FEDERAL DEPOSIT INSURANCE CORPORATION (FDIC): A federal agency that insures bank deposits, currently up to $100250,000 per deposit. FEDERAL FUNDS RATE: The rate of interest at which Fed funds are traded. This rate is currently pegged by the Federal Reserve through open-market operations. City of Dover, Investment Policy Page 12 of 17 Dated June ____, 2011

FEDERAL HOME LOAN BANKS (FHLB): The institutions that regulate and lend to savings and loan associations. The Federal Home Loan Banks play a role analogous to that played by the Federal Reserve Banks vis-a-vis member commercial banks. FEDERAL NATIONAL MORTGAGE ASSOCIATION (FNMA): FNMA, like GNMA was chartered under the Federal National Mortgage Association Act in 1938. FNMA is a federal corporation working under the auspices of the Department of Housing and Urban Development (HUD). It is the largest single provider of residential mortgage funds in the United States. Fannie Mae, as the corporation is called, is a private stockholder-owned corporation. The corporation's purchases include a variety of adjustable mortgages and second loans, in addition to fixed-rate mortgages. FNMA's securities are also highly liquid and are widely accepted. FNMA assumes and guarantees that all security holders will receive timely payment of principal and interest. FEDERAL RESERVE SYSTEM: The central bank of the United States created by Congress and consisting of a seven member Board of Governors in Washington, D.C., 12 regional banks and about 5,700 commercial banks that are members of the system. GOVERNMENT NATIONAL MORTGAGE ASSOCIATION (GNMA or Ginnie Mae): Securities influencing the volume of bank credit guaranteed by GNMA and issued by mortgage bankers, commercial banks, savings and loan associations, and other institutions. Security holder is protected by full faith and credit of the U.S. Government. Ginnie Mae securities are backed by the FHA, VA or FMHM mortgages. The term "passthroughs" is often used to describe Ginnie Mae's. LIQUIDITY: A liquid asset is one that can be converted easily and rapidly into cash without a substantial loss of value. In the money market, a security is said to be liquid if the spread between bid and asked prices is narrow and reasonable size can be done at those quotes. LOCAL GOVERNMENT INVESTMENT POOL (LGIP): The aggregate of all funds from political subdivisions that are placed in the custody of the State Treasurer for investment and reinvestment. MARKET VALUE: The price at which a security is trading and could presumable be purchased or sold. MATURITY: The date upon which the principal or stated value of an investment becomes due and payable. MORTGAGE-BACKED SECURITIES (MBS): An investment instrument that represents ownership of, and is backed by, an individual interest in a pool of mortgages such as those issued by Ginnie Mae or Freddie Mac. Principal and interest from the individual mortgages is used to pay principal and interest on the MBS. MUNICIPAL NOTES AND BONDS: Securities issued by a state, city, or local government to City of Dover, Investment Policy Page 13 of 17 Dated June ____, 2011

finance operations or special projects. PRUDENT PERSON RULE: An investment standard. In some states the law requires that a fiduciary, such as a trustee, may invest money only in a list of securities selected by the custody state--the so-called legal list. In other states the trustee may invest in a security if it is one which would be bought by a prudent person of discretion and intelligence who is seeking a reasonable income and preservation of capital. QUALIFIED PUBLIC DEPOSITORIES: A financial institution which does not claim exemption from the payment of any sales or compensating use or ad valorem taxes under the laws of this state, which has segregated for the benefit of the commission eligible collateral having a value of not less than its maximum liability and which has been approved by the Public Deposit Protection Commission to hold public deposits. RATE OF RETURN: A measure of worth, either at security or aggregate portfolio level, over a period of time. The yield obtainable on a security based on its purchase price or its current market price. This may be the amortized yield to maturity on a bond the current income return. There are many return conventions, including but not limited to yield to maturity at cost, yield to maturity at market, yield to worst, time weighted total return, dollar weighted total return. REPURCHASE AGREEMENT (RP OR REPO): A holder of securities sells these securities to an investor with an agreement to repurchase them at a fixed price on a fixed date. The security "buyer" in effect lends the "seller" money for the period of the agree-ment, and the terms of the agreement are structured to compensate him for this. Dealers use RP extensively to finance their positions. Exception: When the Fed is said to be doing RP, it is lending money, that is, increasing bank reserves. REVERSE REPURCHASE AGREEMENT: The purchase of a security by a dealer with the agreement to sell it back to the seller at a fixed price at a later date. Typically used by owners of securities to finance short-term needs without having to liquidate the security. SAFEKEEPING: A service to customers rendered by banks for a fee whereby securities and valuables of all types and descriptions are held in the bank's vaults for protection. TIME DEPOSITS: A savings account or CD held for a fixed term or with the understanding that the customer can withdraw only by giving advanced notice. TREASURY BILLS: A short-term (less than one year) non-interest bearing discount security issued by the U.S. Treasury department to finance the national debt. Most bills are issued to mature in three months, six months, or one year. TREASURY BOND: Long-term U.S. Treasury securities having initial maturities of more than 10 years. TREASURY NOTES: A non-interest bearing discount security issued by the U.S. Treasury to finance the national debt. Most bills are issued to City of Dover, Investment Policy Page 14 of 17 Dated June ____, 2011

mature in three months, six months or one year. UNIFORM NET CAPITAL RULE: Securities and Exchange Commission requirement that member firms as well as nonmember broker-dealers in securities maintain a maximum ratio of indebtedness to liquid capital of 15 to 1: also called net capital rule and net capital ratio. Indebtedness covers all money owed to a firm, including margin loans and commitments to purchase securities, one reason new public issues are spread among members of underwriting syndicates. Liquid capital includes cash and assets easily converted into cash. VARIABLE RATE MASTER DEMAND NOTES: A floating rate security with initial maturities and indexed rates chosen by the investor. The interest rate is adjusted periodically, usually off a standard such as that prevailing on a Treasury Bill or the prime interest rate. YIELD: The rate of annual income return on an investment, expressed as a percentage. INCOME YIELD is obtained by dividing the current dollar income by the current market price for the security. NET YIELD or YIELD TO MATURITY is the current income yield minus any premium above par or plus any discount from par in purchase price, with the adjustment spread over the period from the date of purchase to the date of maturity of the bond. City of Dover, Investment Policy Page 15 of 17 Dated June ____, 2011

ATTACHMENT B ARTICLE IV. CITY TREASURER AND FINANCIAL AFFAIRS Sec. 42. City treasurer; [signing of warrants.] At the annual meeting the council shall elect a city treasurer to hold office until the next annual meeting of the council, or until his successor has been duly chosen and qualified, but subject to removal at any time by the council. The city treasurer shall be the custodian of all the city funds and shall deposit them in a banking institution designated by the council. He shall pay out no money except upon warrant signed by the city manager and countersigned by the mayor. The mayor and the city manager shall sign no warrants on the city treasurer except pursuant to appropriations or resolutions theretofore made by the council. City of Dover, Investment Policy Page 16 of 17 Dated June ____, 2011

ATTACHMENT C ARTICLE IV. CITY TREASURER AND FINANCIAL AFFAIRS Sec. 46. Annual audit. Annually in the month of July the council shall have the finances of the city and the books and accounts of the city manager, the alderman and the city treasurer audited by a certified accountant. City of Dover, Investment Policy Page 17 of 17 Dated June ____, 2011

Auditor’s Responsibility for Communicating with Audit Committee Presented by: Donna Mitchell, CPA City Controller

What we will cover • Three primary purposes • Matters to be communicated o Auditor’s responsibility o Planned scope and timing of audit o Significant findings from the audit 2

Three Primary Purposes • To clearly communicate an overview of the audit scope, the timing of the audit, and the auditor’s responsibilities. • To provide timely observations arising from the audit that are relevant to oversight of the financial reporting process. • To obtain relevant audit-related information from those charged with governance. 3

Auditor’s Responsibility • The auditor’s responsibilities under generally accepted auditing standards. • This will be detailed in the auditor’s engagement letter, a copy of which will be provided to each audit committee member. 4

Planned Scope & Timing of Audit • An overview of the planned scope and timing of the audit that is not so detailed as to compromise audit effectiveness. • This will be summarized in a memo to the committee. 5

Significant Findings from the Audit • The auditor’s views about findings or issues that the auditor considers to be significant and relevant to those charged with governance regarding their oversight of the financial reporting process. • These will be communicated near or at the end of the audit. 6

Audit Calendar 7

ACTION FORM PROCEEDING: Legislative, Finance & Administration Committee DEPARTMENT OF ORIGIN: Mayor’s Office / City Manager’s Office DATE SUBMITTED: 06/30/11 PREPARED BY: Scott D. Koenig, P.E., Interim City Manager SUBJECT: Additional Downtown Security Cameras (State Homeland Security Grant Program) REFERENCE: RELATED PROJECT: Prior Installation of Downtown Security Cameras APPROVALS: City Manager / Controller EXHIBITS: Exhibit A – Sub-Grant Award Acceptance Statement EXPENDITURE REQUIRED: $ 23,870.00 AMOUNT BUDGETED: $ 0.00 FUNDING SOURCE (Dept./Page in CIP & Budget): Life Safety Budget with reimbursement from SHSGP. TIME TIMETABLE: Complete installation by the end of July 2011. RECOMMENDED ACTION: Authorize staff to complete the project and request reimbursement for all costs associated with the purchase and installation of the three (3) additional downtown security cameras. BACKGROUND AND ANALYSIS The City of Dover has requested and received funding from the State Homeland Security Grant Program (SHSGP) for the purchase and installation of three (3) additional outdoor security cameras in the downtown area. The proposed locations are as follows: 1) City of Dover Electric Pole #17258 near the intersection of S. New Street and Minor Street across from 134 S. New Street; 2) City of Dover Electric Pole #17233 adjacent to the south side of 59 S. Queen Street; 3) City of Dover Electric Pole #17229 adjacent to the north side of 67 S. Queen Street. A quote in the amount of $23,870.00 has been provided by Advantech, Inc. This vendor provides services and hardware under a state contract and is the approved vendor for such purchases under the SHSGP. The funding for this project was provided under short notice to our municipality due to other project being completed under budget. The equipment has been ordered and is scheduled for installation on or about July 18, 2011. All costs associated with the project will be charged to the Life Safety Budget under Public Services. 100% of the project costs will be reimbursed to the City of Dover upon application for reimbursement. Fiscal Note: The cameras and installation are covered by a 1-year warranty for parts and labor. The warranty covers normal wear and tear, malfunction or other defects. The warranty begins once the vendor has confirmed the function of the new installations. Once the warranty expires, labor would be billed at $110.00 per hour and parts would be purchased at the market rate.

For questions concerning this report: 2010 Phone: (302) 736-7022 Annual Income and Expense Report Cheryl A. Russell, AAS Facsimile: (302) 736-4450 City Assessor Owner Name Parcel ID Mailing Address Property Address City State Zip NOTICE: In order to equitably assess your real property, income and expense information is required. Dover City Ordinance Sec. 102-5 requires all commercial/industrial income producing property, within the city limits of Dover to annually file this report. THE INFORMATION FILED AND FURNISHED WITH THIS REPORT WILL REMAIN CONFIDENTIAL, AND IT IS NOT OPEN FOR PUBLIC INSPECTION. Any information related to the actual rental and operating expenses is considered privileged and shall not be public record; such information is legally exempt from Freedom of Information Act. FILING INSTRUCTIONS: PLEASE COMPLETE AND RETURN THIS REPORT TO THE ASSESSOR’S OFFICE ON OR BEFORE JUNE 20, 2011. FAILURE TO FILE THIS FORM TIMELY WILL RESULT IN A $100.00 FEE. You must attach to the completed form, a copy of your 2010 Federal Income Tax Returns, Schedule E (Form 1040), (Social Security Numbers which are contained on this form should be “blacked” out before submission.) Supplemental Income and Expenses and/or Form 8825, Rental Real Estate Income and Expenses of a Partnership, an S Corporation or Limited Liability Company (LLC) with the Form K-1 attached. You need not provide other tax schedules not related to the rental activity. Additionally, Rent Rolls for 2010 must be provided. IN ACCORDANCE WITH SECTION 102-5 OF THE CITY OF DOVER ORDINANCE, ANY OWNER OF COMMERCIAL/INDUSTRIAL INCOME PRODUCING PROPERTY WHO FAILS TO FILE THIS FORM, SHALL BE SUBJECT TO A PENALTY OF $100.00. WHO MUST FILE: All individuals and businesses receiving this form must complete and return this form to the Assessor’s office by June 20, 2011. Owners of all properties, which are rented or leased, including commercial, retail, industrial and residential properties must complete this form, except owners of residential properties of six units or less in which the owner of such property also resides. If a non-residential property is partially rented and partially owner-occupied this report must be filed. OWNER-OCCUPIED PROPERTIES – IF YOUR PROPERTY IS 100% OWNER-O CCUPIED WITH NO REAL ESTATE RELATED INCOME, PLEASE INDICATE BY CHECKING THE FOLLOWING BOX . INCOME AND EXPENSE RELATING TO YOUR BUSINESS ENTERPRISE SHOULD NOT BE INCLUDED IN THIS FORM. HOW TO FILE: Each summary page should reflect information for a single property for the calendar year indicated on the form. If you own more than one rental property, a separate report must be filed for each property. An income and expense report summary page and the appropriate income sch edule must be completed for each rental property. Income schedule A must be filed for apartment rental property and Schedule B must be filed for all other rental properties. A computer print-out is acceptable for Schedules A and B, provided that all the required information is included. CITY OF DOVER ASSESSOR’S OFFICE Mail or hand deliver Report to: 5 E. REED ST. DOVER, DE 19901 Return to the City of Dover Assessor’s Office Prior to June 20, 2011

Honorable Members of Council: I am proposing that the City’s Economic Development Office report to the Mayor, rather than the City Manager. Research by the Clerk’s office has shown that making this change will require only a motion, not an ordinance. The justification for this proposal is as follows: First a brief history: In 2006, a study recommended the combination of the Greater Dover Committee, DDDC, Dover Parking Authority, and Dover Main Street. In March of 2008, a resolution was passed to effect this change. The resulting office was placed under the Planning Department. An executive director to head up the position was needed. Economic Development became a new division within the Planning and Inspections Department. Due to the fact that Economic Development and planning can sometimes be at cross purposes, the office was moved by motion in October of 2009. This was during a reorganization of the City Planning and Inspections Department, which was returned to reporting directly to City Council, rather than to the City Manager. This was done to facilitate the transition to a new planner, who could take advantage of Mr. DePrima’s expertise as a former Dover City Planner. The justification for placing the Economic Development office under the City Manager was the expertise of Mr. DePrima, who served as an EDD for two years and had served on local committees which dealt with the issues of economic growth in the City and County. He had a particular expertise in the matter. He also indicated that his close relationship with the Mayor would facilitate coordination of economic activity. The office in that tradition has almost daily contact with the Mayor. The current situation has changed that dynamic, in that a new City Manager will not have the same relationship. Looking for a City Manager with economic development expertise will only complicate our search. The City placed economic development as a primary duty of the Mayor, not the City Manager. The people and Council voted for a full-time Mayor, based in part on the premise that the Mayor would focus on economic development. This was formalized in a mayoral job description by former Mayor Speed, which is still policy under Mayor Carey. Having the EDO report to the Mayor will formalize the existing relationship, eliminate the possibility of confusion from having “two bosses” when we hire a permanent City Manager, give the Mayor formal resources to achieve the objective he was given by the Council and voters in the referendum, and encourage more accountability to the voters for results. The Council will still have the same level of contact and influence that it currently has. It controls the budget, will receive staff action reports, and will still be able to interact with the staff. (Oddly enough, Council/staff interaction could actually reduce under a new City Manager if we get one who insists on going through him to get to the staff). I see this move as protecting Council’s interests. Most of City operations fall into administrative areas, and these should remain under a City Manager. Other functions include policy areas, such as police, fire, planning and zoning, and tax assessment, which Council determined should report directly to the elected officials. I am submitting that Economic Development should fall in the latter category.

My proposed motion is that the Economic Development Office be budgeted under the Mayor’s office, with the understanding that its employees will maintain the rights typical of city departmental employees (not a political appointment), and the Office shall make regular reports to City Council on its objectives and progress. Respectfully yours Councilman David Anderson

EXCERPT - COUNCIL MEETING MINUTES OF MARCH 10, 2008 DOWNTOWN DOVER PARTNERSHIP - REQUEST FOR APPROVAL TO IMPLEMENT THE PARTNERSHIP During the November 5, 2007 Council Workshop, Mr. Moore, President of the Greater Dover Committee, gave a presentation on the Downtown Dover Partnership Corporation (Exhibit #5). He advised members that the Downtown Partnership is a remnant of the Hyett-Palma Study (2006 Downtown Economic Enhancement Strategy), which recommended that the City implement a partnership that would combine the DDDC, Dover Parking Authority, and Dover Main Street. Mr. Moore reviewed the presentation provided to members regarding the Downtown Dover Partnership, noting that in addition to the partnership, the other key recommendations from the Hyett-Palma Study were for the hiring of an economic development leader, and to invest in a professional marketing strategy. He advised members that the partnership has been approved by the Greater Dover Committee, DDDC, Dover Parking Authority, and Dover Main Street. Mr. Moore requested that members authorize City staff to move forward with the ordinance amendments and other details and endorse the proposed By-Laws and Certificate for Incorporation for the Downtown Dover Partnership Corporation, which would allow for the partnership to be formed. Responding to Mr. Ruane, Mr. Moore indicated that with regards to the membership for the Board of Directors, the presentation is accurate and that Article 6, Section 6 of the Articles of Incorporation will be revised accordingly. Mr. DePrima advised members that any City employee created as a result of the partnership will be subject to the creation of goals, performance evaluations, and accountability, as with any other City employee. He noted that with the current commissions and boards, there is only one (1) full-time City employee, which is the Main Street Coordinator. The proposal maintains that position, to be known as the Downtown Coordinator, with the addition of two (2) additional positions: Marketing Administrative Assistant and the Economic Development Professional, whom would not only serve full-time on downtown redevelopment but would also be used for City-wide economic development. For clarification, Mr. DePrima confirmed that the performance measures and objectives for this organization’s budget unit will be required. Responding to Mr. Hogan, Mr. Moore stated that as he understood Mr. Lakeman, President of Main Street Dover, there would not be a loss in any current status of the Main Street Program under the proposed scenario. Mr. Slavin moved to suspend the rules to allow public comments, seconded by Mr. Leary and unanimously carried. Council President Williams noted the receipt of correspondence from Mr. Patterson, President of the DDDC, in support of the proposed partnership (Exhibit #6), and from Ms. Windley, Founding Member and current Board Member of Main Street Dover, in opposition to the proposed partnership (Exhibit #7).

Excerpt - Council Meeting Minutes of March 10, 2008 Page 2 Ms. Windley, 725 Bicentennial Boulevard, referred to the e-mail she submitted and explained her greatest concern is for the actual loss of the historic preservation aspect of the Main Street Program. She noted that the Main Street approach is a community driven program and that the proposed partnership would eliminate the program from being community driven. The By-Laws eliminate the historic preservation and tourism professionals. She stated that the historic preservation part of the mission statement has been eliminated. Noting that the historic and cultural architecture is one of the greatest assets of the City, it was her feeling that to eliminate this protection would be detrimental to the City. Mrs. Windley advised members that in discussions with the State Program, Main Street Dover will lose its National Trust designation. As included in her e-mail (Exhibit #7), she read that portion referencing the letter dated October 11, 2007, from Mr. Lakeman to Mr. Moore, into the record. In response to Mr. Hogan, Ms. Windley explained that the Main Street Board of Directors voted in favor of the concept, with the caveats included in the letter dated October 11, 2007. Mr. Slavin relayed his opinion that the new partnership would meet the spirit and letter of a Main Street Organization and if there is a loss of National Trust, it would be due to there being an end to one organization and not yet the beginning of another. He stated that this loss would not mean that the designation would not be granted to the new organization; however, the new organization would be required to earn such designation. With reference to the National Trust, Mr. Slavin stated that although they have good programs and perform great works, he did not feel that they know the specific and current needs of the City. Disagreeing with the concerns regarding the loss of historic preservation protections, he noted that the City also has the Historic District Commission, Planning Commission, and City staff, as well as the committee structure to assure these protections are maintained. Mr. Moore assured members that this effort has been well communicated amongst a large community for over two (2) years. Referring to the concerns and position of Main Street regarding the proposed partnership, Mr. Moore advised members that meetings were held with Mr. Lakeman and that the issues mentioned tonight have been addressed. With regards to the concerns that the proposed partnership would not be a community effort, he noted that the Statement of Purpose included in the Bylaws for the Downtown Dover Partnership Corporation, states the following: “In particular the goal of the corporation is to improve the opportunities for job creation, broaden the tax base through the development of the commercial and residential potential of the Central Dover area, and to maintain and restore the historic architectural and community qualities of the downtown area consistent with the goals of the National Main Street Program.” It was his feeling that this statement addresses those concerns relayed by Ms. Windley. Mr. Moore expressed the dire need for a change for downtown Dover at this time and urged members to approve the implementation of the Partnership. Mr. Moore stated that if Council determines that the City is unable to fund the new economic development director position in the first year, an interim plan has been developed that would allow for the Director of Planning and Inspections, Mrs. Townshend, to serve as the director and to provide staff support to the organization. He explained that this service is already being provided by Mrs. Townshend to three (3) different organizations and that the consolidation of the organizations would actually reduce the amount of work required of her at this time.

Excerpt - Council Meeting Minutes of March 10, 2008 Page 3 Referring to Section 2 of Article VII of the Bylaws, Mr. Ruane questioned if it would be the preference of Mrs. Townshend that there be a separate and distinct executive director rather than herself. Responding, Mrs. Townshend indicated that this would be the preference. She explained that with the budget and staffing plan that was developed, there would be a short period of time that she would assume the responsibilities; however, she reminded members that the current Main Street Manager, Mr. Perez, would be assuming many of the day to day tasks associated with this position. Mrs. Townshend advised members that by July 1st, the Comprehensive Plan would be near completion. As mentioned, she stated that the planning staff and the Public Services Manager are already very much involved with all of the organizations being consolidated with the partnership; therefore, it was her opinion that the consolidation would provide efficiency by better allocating the existing staff amongst the committees rather than duplicating efforts. Mrs. Townshend reminded members that several staff members currently attend the various committee meetings. In response to Mr. Ruane, Mrs. Townshend stated her understanding that if Council approves the Partnership, the City Manager would incorporate the required budget amounts into next year’s budget for consideration by City Council. Mr. DePrima advised members that there currently are no funds in the budgets of the current organizations to allow for the hiring of any positions in this fiscal year. For clarification, Mr. DePrima stated that if Council approves the implementation of the partnership, the necessary corrections will be made to the Bylaws and Articles of Incorporation to be presented back to Council for their review and approval. Mr. Slavin moved for approval of the implementation of the downtown partnership with the understanding that the Bylaws and Articles of Incorporation and following documents and/or ordinances will be presented to Council as separate action items, seconded by Mr. Hogan. Mr. Ruane relayed his support with the concept of the consolidation of the organizations; however, he relayed concern with the current staffing arrangement, feeling that the current City Planner should not be required to assume additional responsibilities in this regard. It was his feeling that for the partnership to be successful, there is a need for a dedicated employee and until such time that Council authorizes the additional employee, he would not support the proposal. Mr. DePrima reiterated that the intention is for implementation of the changes to occur after July 1st, explaining that the Articles of Incorporation and Bylaws, as well as the budget, would not become effective until July 1st . Therefore, he stated that there would be no extra duties required of Mrs. Townshend before July 1st. The motion for approval of the implementation of the downtown partnership with the understanding that the Bylaws and Articles of Incorporation and following documents and/or ordinances will be presented to Council as separate action items was carried by a roll call vote of seven (7) yes, one (1) no (Mr. Ruane), and one (1) absent (Mrs. Russell). S:\EX C ER PTS\03-10-2008 - C ouncil Excerpt - D ow ntow n D over Partnership - R equest For Approval To Implement The Partnership.w pd

EXCERPT - COUNCIL MEETING MINUTES OF OCTOBER 26, 2009 Proposed Ordinances #2009-24 and #2009-25 Mrs. Traci McDowell, City Clerk, explained that during their regular meeting of July 24, 2006, City Council adopted ordinances amending Chapter 82 - Planning, Section 82-2 - City Planner, and Chapter 102 - Taxation, Article I - In general. These amendments placed management oversight of the Planning Department and Tax Assessor’s Office under the City Manager. Mrs. McDowell stated that, at the request of the Chairman of the Legislative, Finance, and Administration Committee, she prepared draft ordinances reverting oversight of these departments back to City Council. Mr. McGlumphy stated that when Council decided to place the City Planner and the Tax Assessor under the City Manager in 2006, it was with the understanding that this would be a temporary arrangement. He noted that some members of Council had requested that the former organizational structure be restored. Mr. DePrima explained that, three years ago, he had advocated the change in structure due to some difficulties that developed in the Tax Office and the Planning Department. He noted that, at that time, he believed he should have direct oversight of these departments so that he could be more proactive in addressing these types of problems. He stated that he now feels that, whether or not he has direct responsibility for supervision of these individuals, his job is to be vigilant regarding all City operations and to keep Council apprised, and to be of assistance to all department heads whether appointed by the City Manager or Council. Mr. DePrima emphasized that the current Tax Assessor and City Planner are outstanding employees who work very well independently and with the City Manager. Mr. DePrima stated that he believed that the City would be better served by going to a more traditional form of government where all department heads are appointed by and work under the direction of the City Manager, but stated that the City’s hybrid structure is “ingrained in the culture”. Mr. DePrima stated that he had discussed with Mrs. Townshend some possible shifting of responsibilities. He mentioned three areas where he felt some changes might be made: 1. Stormwater management planning - Mr. DePrima stated that this task is a function of the State Department of Natural Resources and Environmental Control (DNREC) which involves pure planning. He noted that current planning staff have the skill sets to accomplish this task and suggested that this responsibility be shifted to the Planning Department. 2. Dangerous and vacant building ordinances - Mr. DePrima noted that this responsibility is better aligned with Public Services staff (building code officials, fire marshals, and emergency management employees) rather than the property maintenance inspectors in the Planning Department who currently perform this function.. 3. Economic Development - Mr. DePrima stated that the Economic Development Office (EDO) has been newly created in the last three years and was appropriately placed under the Planning Department initially. However, he stated he would like the EDO placed under the City Manager’s responsibility in the Pubic Services Department as economic development was traditionally a function of the City Manager before the City had an Economic Development Director. In addition, he felt he could contribute strongly in this area as he has

Excerpt - Council Meeting Minutes of October 26, 2009 Page 2 two years prior experience as an Economic Development Director and has served with a number of relevant organizations including Downtown Dover Corporation, the Kent County Aeropark Authority, for 18 years, and the Mainstreet Board of Directors. Mr. DePrima also cited his passion for economic development as a factor in placing this function under his supervision. He also noted that economic development can conflict with planning as the City Planner has statutory responsibility to review projects from a planning perspective,but an economic developer is called upon to be an advocate for development projects. He explained that economic development planning would remain with the City Planner under his proposal, but the actual operation and administration of the EDO would fall under the City Manager. He indicated that his close relationship with the Mayor, who also shares responsibility for economic development, would facilitate coordination of economic activity. In response to Mr. Leary, Mr. DePrima stated that the Code does not clearly designate these responsibilities so trading these functions would not be difficult. He noted that, because the Economic Development Office is established in the budget, it would take a motion by Council to direct that it be aligned with the City Manager’s Office and become budgeted under the Public Services Department. Mr. Ruane stated that the suggested reorganization is not germane to the proposed ordinances and should be presented to the committee in a different form which would include comments on the proposal from Mr. Scott Koenig, Public Services Director, and Mrs. Ann Marie Townshend, Director of Planning and Community Development. Mr. Salters requested that a Committee Action Form that details the proposed restructuring be prepared for consideration at the next Committee meeting. The Committee recommended adoption of Ordinances #2009-24 and #2009-25. By consent agenda, Mr. McGlumphy moved for approval of the Committee's recommendation, seconded by Mr. Salters and carried by a unanimous roll call vote. (The First Reading of the ordinance will take place during the latter part of the meeting) S:\EX C ER PTS\10-26-2009 - Proposed O rdinance #2009-24 and #2009-25 - .w pd