Minutes

REGULAR COUNCIL MEETING The Regular Council Meeting was held on June 27, 2011 at 7:30 p.m. with Council President Leary presiding. Council members present were Mr. Anderson, Mrs. Russell, Dr. McGlumphy, Mr. Lynn, Mr. Bonar, Mrs. Williams, and Mr. Hutchison. Mr. Hare was absent. Council staff members present were Police Chief Hosfelt, Ms. Russell, Mrs. Mitchell, Mrs. Townshend, Fire Chief Fortney, Mr. Koenig, Deputy City Solicitor Pepper, and Mrs. McDowell. Mayor Carey was also present. OPEN FORUM The Open Forum was held at 7:15 p.m., prior to commencement of the Official Council Meeting. Council President Leary declared the Open Forum in session and reminded those present that Council was not in official session and could not take formal action. There was no one present wishing to speak during the Open Forum Segment. The invocation was given by Chaplain Dixon, followed by the Pledge of Allegiance. AGENDA ADDITIONS/DELETIONS Mr. Bonar moved for approval of the agenda as presented, seconded by Dr. McGlumphy and unanimously carried. Dr. McGlumphy moved for approval of the consent agenda, seconded by Mrs. Russell and carried by a unanimous roll call vote (Mr. Hare absent). ADOPTION OF MINUTES - SPECIAL COUNCIL MEETING (BUDGET REVIEW) OF MAY 17, 18, 19, 24, AND JUNE 6, 2011 The Minutes of the Special Council Meeting (Budget Review) of May 17, 18, 19, 24 and June 6, 2011 were unanimously approved by motion of Dr. McGlumphy, seconded by Mrs. Russell and bore the written approval of Mayor Carey. ADOPTION OF MINUTES - REGULAR COUNCIL MEETING OF JUNE 13, 2011 The Minutes of the Regular Council Meeting of June 13, 2011 were unanimously approved by motion of Dr. McGlumphy, seconded by Mrs. Russell and bore the written approval of Mayor Carey. PRESENTATION BY FRIENDS OF THE DOVER PUBLIC LIBRARY Ms. Ann Stewart, President of the Friends of the Dover Public Library, presented a check in the amount of $97,639.34 to Mayor Carey and Ms. Dorothy Snyder, President of the Dover Library Foundation, for the new Library. Ms. Snyder relayed appreciation for the funds received and introduced members of the Friends of the Dover Public Library, in addition to Ms. Stewart, who were present, as follows: Mr. N.C. Vasuki (incoming President), Mr. Jim Stewart, Ms. Beth Bresnahan, and Ms. Annie Scott.

CITY COUNCIL MEETING OF JUNE 27, 2011 PAGE 2 PARKS, RECREATION, AND COMMUNITY ENHANCEMENT COMMITTEE REPORT - JUNE 13, 2011 The Parks, Recreation, and Community Enhancement Committee met on June 13, 2011 with Chairwoman Russell presiding. Silver Lake Revitalization - Phase III During their meeting of March 8, 2010, members reviewed information regarding a Silver Lake Revitalization Project and recommended approval of a landscaping and stormwater improvement plan for Silver Lake Park. Mr. Zachery Carter, Director of Parks and Recreation, explained that staff from the City, the State of Delaware Department of Natural Resources and Environmental Control (DNREC), and the Kent Conservation District are continuing their efforts to reduce pollution in the St. Jones river watershed area, particularly in the area of Silver Lake. He noted that planning for Phase III of the project, which includes the portion of the St. Jones river that runs between Division and Loockerman Streets, is currently underway. Mr. Carter stated that residents near the target area were consulted regarding this phase of the project and a public meeting was held where plans for the project were displayed. He stated that the community did not relay any concerns regarding Phase III and that members of the Silver Lake Commission reviewed the proposed plans and were supportive. Mr. Carter noted that the purpose of presenting information regarding the project to the Committee was to provide members an opportunity to comment on the plans. He indicated that the State is also considering dredging Mirror Lake and that he hoped to hear more about this possibility within the next one (1) to two (2) months. Ms. Brittany Benson and Ms. Jennifer Bowman, St. Jones Watershed Coordinators, Kent Conservation District, reviewed a presentation - Silver Lake Park Revitalization Project - Phase III - Park Drive. Ms. Benson explained that the Clean Water Act of 2006 required Delaware to develop a list of impaired waterways and determine the associated Total Maximum Daily Load (TMDL), which is the maximum level of pollutants that a water body can receive and safely meet water quality standards. She indicated that the St. Jones watershed has been identified as an impaired waterway and that the Silver Lake sub-watershed of the St. Jones provides the greatest opportunity to make significant improvements. Ms. Benson stated that the Silver Lake Park Revitalization Project was developed by the St. Jones Tributary Action Team to reduce TMDL’s. She advised members that the goal of the project is to create a permanent, 100-foot buffer consisting of native plantings bordering the eastern side of the St. Jones river in the targeted area. After meeting with and surveying residents, the team determined that problems in the region include poor water quality, poor habitat value, Canada goose waste, sedimentation of Mirror Lake, and periodic flooding. Ms. Benson stated that the proposed buffer would aid in improving water quality and also result in aesthetic improvements in the area. She indicated that additional goals would be to remove invasive plant species and restore the shoreline. Ms. Benson explained that three (3) major plantings in Phase I have been accomplished, Phase II design is complete and is being bid out to a contractor, and work has begun on Phases III and IV of the project. Ms. Bowman reviewed recommendations as to the specific species of plants, shrubs, and trees proposed for this area. She presented two (2) landscaping designs, the original design which contained a “denser” vegetation plan and a second, scaled-back version which contained fewer plantings. She indicated that feedback received from residents indicated a preference for the second option, which reduces obstruction of the view of the waterway.

CITY COUNCIL MEETING OF JUNE 27, 2011 PAGE 3 Mr. Carter indicated that the Silver Lake Commission also favored the “less dense” landscape design, which would provide a better view of the river and would also allow for easier monitoring of the area. He stated that the plan would reduce the amount of area currently being mowed, which would also reduce expenses. Mr. Dean Holden, Chair of the Silver Lake Commission, expressed gratitude to Mr. Lyle Jones, DNREC Program Manager, Ms. Benson, and Ms. Bowman for their efforts on the project, stating that the work already accomplished has added to the beauty of the region, helped to deter Canada geese from utilizing the area, and aided in stream restoration. He also commended them for working with area residents and the Silver Lake Commission to resolve their concerns. In response to Mr. Anderson, Mr. Scott Koenig, Interim City Manager, stated that completion of the project would demonstrate that the City is making progress toward meeting the provisions of the City’s Municipal Separate Storm Sewer (MS4) permit. He noted that, due to the scope of the pollution problems in Silver Lake, the project would probably not result in statistical improvement; however, the City will receive credit for making a community improvement that shows progress toward meeting the overall burdens of the permit. Mr. Carter stated that community education projects that the Watershed Coordinators completed at the Agricultural Museum and Dover High School will also be credited as activities that help to reduce Silver Lake pollution. Mr. Jones anticipated that completion of Phase II of the Revitalization Project, which involves construction in the Silver Lake Dam area, will bring about major water quality improvement. In addition, he felt that restoring the shoreline, reducing the sediment, and decreasing the Canada goose population will benefit the water quality. In response to Mr. Anderson, Mr. Jones stated that reducing the bacterial count in Silver Lake will be a long-range project, due to the quantity of sediment, bacteria, and direct discharge from street drains in the City. Responding to Mr. Anderson regarding the use of local and minority contractors to complete the project, Mr. Jones stated that much of the work for the project will be performed by City grounds staff and volunteers. He emphasized the importance of obtaining qualified contractors for the project, particularly for major construction to be completed during Phase II in the area between the Silver Lake Dam and the footbridge and indicated that qualified minority and local contractors who submit bids for the project will receive full consideration. In response to Mrs. Horsey, Mr. Jones stated that they are planning to spray invasive plants in the area, including poison ivy that has accumulated at the Court Street Bridge near Legislative Hall. Mrs. Russell, Mr. Anderson, and Mrs. Horsey commended Mr. Jones, Ms. Benson, and Ms. Bowman for the aesthetically pleasing and well-designed plan and extended thanks for their efforts related to the project. The Committee recommended approval of the plan as presented.

CITY COUNCIL MEETING OF JUNE 27, 2011 PAGE 4 Mrs. Ann Marie Townshend informed members that a bus tour to visit projects completed using Community Development Block Grant (CDBG) funds, originally scheduled for June 13, 2011, was canceled. She indicated that it is planned to reschedule this event in conjunction with the Committee’s meeting in July. Mrs. Townshend advised members that the tour would allow them the opportunity to view sites funded through the Neighborhood Stabilization Program, visit the Interfaith Mission for Housing, and examine areas in the City that have benefitted from housing rehabilitation and infrastructure investments. In response to Mr. Lewis, Mrs. Townshend stated that properties that receive CDBG funds for improvements are examined to ensure work has been completed before payment is issued, and properties are also inspected if a building permit is issued; however, she stated that perhaps a 6-12 month follow-up survey should be performed to ensure that work has been executed in a professional manner. By consent agenda, Dr. McGlumphy moved for approval of the Committee’s recommendation for approval of the plan as presented. The motion was seconded by Mrs. Russell and carried by a unanimous roll call vote (Mr. Hare absent). By consent agenda, Dr. McGlumphy moved for acceptance of the Parks, Recreation, and Community Enhancement Committee Report, seconded by Mrs. Russell and carried by a unanimous roll call vote (Mr. Hare absent). UTILITY COMMITTEE REPORT - JUNE 13, 2011 The Utility Committee met on June 13, 2011 with Chairman Bonar presiding. Dedication of Rights-of-Way and Public Infrastructure - Blue Hen Apartments The developer of the Blue Hen Apartment Complex, Pettinaro Construction Co., Inc., has requested that all public infrastructure improvements adjacent to this project be dedicated to the City of Dover for permanent ownership and maintenance. Members were provided a list of all of the public improvements associated with this project, as well as a map showing the general location and configuration of the subject rights-of-way. Pettinaro Construction, Co., Inc. has constructed all of the improvements in accordance with City standards and specifications. After construction was completed, City staff inspected the public improvements and provided the developer with a list of repairs to be made to meet the City of Dover Standards and Specifications for Public Works Construction. As of this date, all work related to the public infrastructure has been completed by the developer. A one (1) year Maintenance Agreement, Letter of Credit, and a Release of Liabilities will be submitted by the developer as part of the dedication process. In addition, as-built drawings of the subject improvements and rights-of-way have been submitted to the City of Dover as permanent records. Staff recommended acceptance of dedication of rights-of-way and public infrastructure adjacent to the Blue Hen Apartment Complex, to include all referenced public improvements, as follows: Street Infrastructure (0.3040 miles) (Construction Value = $ 240,750): Blue Hen Boulevard Station 0+00 to Station 11+60 1,160 l.f. Haslet Street Station 0+00 to Station 4+45 445 l.f.

CITY COUNCIL MEETING OF JUNE 27, 2011 PAGE 5 Mr. Scott Koenig, Public Services Manager/Director of Public Works/Interim City Manager, advised members that the total construction value of the public improvements is $240,750. In response to Mrs. Williams, Mr. Koenig stated that he is satisfied with the outcome of the improvements. Responding to Mr. Blakeman, Mr. Koenig explained that the “rough patch,” located approximately 200 feet from the stop sign was caused by a water main break during the winter. He stated that the water main existed prior to these improvements and was already dedicated to the City of Dover. Mr. Koenig indicated that the City will be completing a repair patch on that break, probably within the next 30 to 60 days, pending the approval of a street contractor. Based on his assessment of the problem, Mr. Koenig stated that the developer is not responsible for these repairs since the City’s infrastructure failed after the developer completed his improvements. The committee recommended acceptance of dedication of rights-of-way and public infrastructure adjacent to the Blue Hen Apartment Complex, to include all referenced public improvements, as detailed on the List of all Public Improvements. By consent agenda, Dr. McGlumphy moved for approval of the Committee’s recommendation, seconded by Mrs. Russell and carried by a unanimous roll call vote (Mr. Hare absent). Universal Recycling Grants - Recycling Services Reimbursement Agreement In June 2010, the State of Delaware passed legislation which established Universal Recycling in Delaware. This legislation requires the implementation of comprehensive residential and commercial recycling programs by municipalities and private waste haulers. It also established the Delaware Recycling Fund and the Recycling Grants and Low-Interest Program to defray the costs of implementation, with funding derived from the conversion of the former bottle deposit to a Recycling Fee on beverage containers. In January 2011, the City of Dover submitted a series of grant applications related to the implementation of a comprehensive recycling program. In April 2011, the City of Dover was informed that Universal Recycling Grant funding will be awarded to the City, in the amount of $101,151, as follows: 1. Public Information & Education for Customers - $ 15,000.00 2. “Schedule Change” Flyers Reimbursement - $ 3,115.00 3. Curbside Recycling Container Labels (Qty. = 15,250) - $ 2,798.00 4. Purchase of 1,782 wheeled recycling carts - $ 80,238.00 $101,151.00 Staff requested authorization to execute the reimbursement agreement and begin the work associated with the agreement. The City of Dover expended funds in FY2011 for the purchase of wheeled recycling containers, curbside recycling container labels and “Schedule Change” flyers. All of these expenses are related to the implementation of the curbside program and will be eligible for reimbursement once the agreement has been signed. These expenses are part of the funds identified in 2, 3 and 4, listed above.

CITY COUNCIL MEETING OF JUNE 27, 2011 PAGE 6 In response to Mrs. Williams, Mr. Koenig explained that the need to purchase 1,782 wheeled recycling carts was determined by calculating the estimated number of residential houses downtown and small businesses that will need carts, and the cumulative number of mobile homes in the City. Responding to Mr. Blakeman, Mr. Koenig indicated that Section 2 - Reimbursement of Appendix A of the Recycling Services Reimbursement Agreement refers to future rounds of the grants and that this round only includes the $101,151.00 of expenses. In response to Mr. Blakeman, Mr. Koenig stated that the dates in the contract will be pushed back. Mr. Snaman questioned how apartment complexes would be addressed. In response, Mr. Koenig indicated that the Universal Recycling legislation provides a deadline by which recycling service must be extended to apartment complexes; however, as a hauler, the City of Dover does not pick up individual apartment complexes. He indicated that private sector haulers will have to address ways to pick up recyclables at those facilities. Responding to Mrs. Williams, Mr. Koenig stated that the City has not extended the curbside recycling program to Brandywine Court Condominiums. He indicated that a method for collecting curbside recyclables there will need to be developed. Mrs. Williams suggested that Mr. Koenig contact Brandywine Court Condominiums to request that a community meeting be scheduled. In response to Mr. Bonar, Mr. Koenig stated that the City received approximately $350,000 in donated recycling carts from the Delaware Solid Waste Authority and this reimbursable grant will cover the expense for 1,782 recycling carts. The City will have future expenses related to repairs to existing carts and the purchase of new carts. Mr. Koenig explained that the City will have to provide a regular trash container and a recycling cart to each newly constructed house at a cost of approximately $100 per house. Historically, there have been between 300 to 400 new homes constructed each year and in the next five (5) years he anticipates that between 200 to 300 new homes will be constructed per year. Mr. Koenig stated that the recycling contract for the hauler that collects recyclables will cost the City approximately $240,000 this year and will be the major cost of the recycling program over the next five (5) years. He noted that these expenses are not reimbursable. The committee recommended authorizing staff to execute the Recycling Services Reimbursement Agreement with Delaware Department of Natural Resources and Environmental Control (DNREC). The City of Dover will be eligible for reimbursement up to $101,151.00 for work and/or services identified in the agreement. By consent agenda, Dr. McGlumphy moved for approval of the Committee’s recommendation (Exhibit #1), seconded by Mrs. Russell and carried by a unanimous roll call vote (Mr. Hare absent).

CITY COUNCIL MEETING OF JUNE 27, 2011 PAGE 7 Review of Utility Related Capital Investment Plan (CIP) (Electric and Water/Wastewater) Members were provided a Project Tracking Report, as of April 30, 2011, for the Utility (Electric and Water/Wastewater) Related Capital Investment Plan (CIP). At the request of Chairman Bonar, Mr. Ronald Lunt, Director of Public Utilities, reviewed the status of the Major Projects in the Utility (Electric and Water/Wastewater) Related Capital Investment Plan (CIP). Regarding the 1.0 MG Elevated Water Storage Tank, Mr. Lunt advised members that this project has been delayed due to the new model not working properly. The Public Utilities Department has received assistance from consultants and the new engineering firm, who have greater expertise in this area. Mr. Lunt explained that the delay was also related to the Garrison Energy Center requesting a water usage study, as the department focused on helping them understand the types of water improvements that may be required for the project if it moves forward. Mr. Lunt informed members that upon submitting application to the Delaware Department of Natural Resources and Environmental Control (DNREC) for Well 8, DNREC requested a comprehensive review of all of the City’s well permits and allocations. He stated that there have been several meetings between Public Utilities and DNREC, and that DNREC has been open to their ideas. DNREC was happy to learn that the City is examining the possibility of modifying some of the current allocations to provide better protection to the ground source water. In regard to the US 13 East Sanitary Sewer Interceptor, Mr. Lunt stated that the project is substantially complete with only a few punch list items remaining and he expects to close out the contract within the next month or month and one-half. Mr. Lunt stated that construction has begun on Bayard Avenue and work began on the alley east of Bayard Avenue earlier in the day. The contract for the jack and bore has been issued and work should begin underneath Loockerman Street within the next month. Regarding Phase II of the water project on the East side of North State Street, Mr. Lunt noted that the project was delayed in order to reallocate the funds to the Route 13 Water Main project. Mr. Lunt reported that the Route 13 Water Main project has begun and reminded members that it requires night work and road lane closures. Referring to the Remote Control and Monitor Wells project, Mr. Lunt reminded members of the master station failure at the water treatment plant and that funds were reallocated to this project. He reported that the master station was delivered within the last month and has been functionally installed. Mr. Lunt stated that the FY 2010 Inflow/Infiltration Removal (I & I) project is part of the Division Street project and that some of the mains in the area west of Governors Avenue and north of Division Street have been completed. Division Street is scheduled to be closed with complete detour beginning the evening of July 9, 2011 for one (1) week. He informed members that

CITY COUNCIL MEETING OF JUNE 27, 2011 PAGE 8 Mrs. Kay Dietz-Sass, Public Affairs Coordinator, is handling all public notification for this project. Mr. Lunt reported that the Delaware Department of Transportation (DelDOT) has worked with the City on this project and will detour truck traffic to Route 13 via Scarborough Road. Although they do not typically detour traffic into other construction zones, such as the Route 13 Water Main project, they will allow the City to complete this work with only a one-lane restriction shut down. He commended DelDOT for accommodating the City in regard to this project and noted that the relationship between the City and DelDOT has improved as a result of quarterly meetings. Mr. Lunt informed members that bids for the Fox Hall Pump Station and Heatherfield Force Main Rerouting projects will be considered for award by Council later in the evening. In regard to the Tar Ditch Interceptor Upgrade, Mr. Lunt advised members that there are several issues related to this project. It was discovered that the current sewer line, in the Tar Ditch east of State Street, is misaligned and that both sections will need to be replaced. While researching this problem, staff learned that there are no current easements recorded for this sewer line. Mr. Lunt stated that staff has met with the homeowners to discuss options for this project and indicated that they have not been receptive to the project, especially the requirement for the removal of one (1) large tree, but have come up with options that staff is in the process of evaluating. He noted that the City’s options for moving the line are limited because there is a storm sewer main located next to the sanitary sewer and there is not a lot of extra elevation drop between the first and last manholes. In response to Mr. Bonar, Mr. Lunt indicated that staff will need to meet with the homeowners again to determine if they will grant easements and to explore different options. Responding to Mrs. Williams, Mr. Lunt supposed that the misalignment was the result of incorrect installation of the sewer line and stated that the engineer estimated that the line was installed in the early 1960s or earlier. Mr. Lunt stated that the Various Pump Motor Replacement project was part of a grant that was received from the State within the last two (2) years. He noted that the pump motors were replaced in one (1) well and in two (2) different pump stations and this project is now complete. Mr. Lunt reminded members that the Miscellaneous Distribution System Upgrade project is a place holder for possible water main breaks that may require an expensive repair. Regarding the Wellhead Redevelopment project, Mr. Lunt noted that it is an active project that will be completed this fiscal year and the budgeted funds will be expended. Mr. Lunt stated that the design work related to the water quality projects for Columbia Avenue, Ross Street, William Street, and West Street (W. Alley) is partially complete; however, due to funding issues, these projects have been delayed until FY 2012. Mr. Lunt reported that the FY 2012 Inflow/Infiltration (I & I) Removal will be completed in conjunction with the Division Street project. There are two (2) different contractors for the main relining and the I & I projects for the manholes, so staff has coordinated the contractors to complete Division Street first and then the contractor for the I & I will seal the other remaining manholes.

CITY COUNCIL MEETING OF JUNE 27, 2011 PAGE 9 Mr. Lunt informed members that the SCADA Technical Equipment Upgrade is an annual upgrade of all obsolete Remote Terminal Units (RTU) and lift stations and that this project has been completed for FY 2011. Referring to the vehicles and equipment project noted on Line 23 of Page 5 of the Project Tracking Report, Mr. Lunt reported that all vehicles and equipment have been ordered and this project is complete. In response to Mr. Blakeman, Mr. Lunt stated that the Walker Road Overhead Conversion was cancelled because the price was too high for the water part and would have required funds for too many years. It was Mr. Lunt’s opinion that there was no need to bury the electric if the water would not be completed simultaneously. Mr. Lunt reported that the City’s electric line relocation for the Wyoming Mill Road Realignment is complete. Mr. Lunt explained that the funds from the Walker Road Overhead Conversion were reallocated to accelerate a new project for substation switches, 69kV Substation Switch Replacement, because two (2) or three (3) of the switches in North Street burned up. He indicated that all of the new switches have been ordered for the North Street substation and, next year, this project is scheduled to be completed under one (1) outage, utilizing the Potential Transformers (PT), Current Transformers (CT) and arresters which have been ordered under separate projects. Mr. Lunt indicated that the CIPs regarding the plant are included in the PACE/NAES Report and would best be discussed with the next item on the agenda. The Committee recommended acceptance of the Utility Related Capital Investment Plan (CIP) (Electric and Water/Wastewater) Report. By consent agenda, Dr. McGlumphy moved for approval of the Committee’s recommendation, seconded by Mrs. Russell and carried by a unanimous roll call vote (Mr. Hare absent). PACE/NAES Report (March and April) The PACE/NAES Monthly Reports for March and April 2011 were provided to members to enable them to monitor electric sales and revenues received, which will provide a better understanding of any fluctuations that occur and allow the opportunity to make improvements if deemed necessary. Mr. Ronald Lunt, Director of Public Utilities, reviewed the PACE/NAES monthly report for April 2011. He reported that the City’s cost-of-service continued to remain below budget and that sales were a couple thousand megawatt hours over projection, which is based on weather normalized loads. For the benefit of the new members, Mr. Lunt called attention to the charts contained throughout the PACE/NAES monthly report for April 2011. He informed members that the budget and actual amounts depicted on these charts for July through December 2010 are identical because, during the semiannual adjustment, in January 2011, the projections in the budget were reset to reflect the actual amounts.

CITY COUNCIL MEETING OF JUNE 27, 2011 PAGE 10 In response to Mr. Bonar, Mr. Lunt indicated that Units 1, 2, and 3 ran during the last two (2) weeks for an approximate total of seven (7) hours. He also explained that a scheduled run for Unit 3 was cancelled and staff is working with PJM to receive compensation for fuel expenses for the near run time. Responding to Mrs. Williams’ questions regarding the shelf life of Units 1 and 2, Mr. Lunt stated that these units have exceeded the shelf life. He explained that the veins where the steam enters into the turbine are showing heavy wear and the only way to repair or fix them is to pull the units apart. It will now need to be determined whether it would be more economically advantageous to pull the units apart or continue to operate safely until they fail. In response to Mr. Bonar, Mr. Lunt requested the opportunity for The Energy Authority (TEA) to provide guidance regarding this matter before it comes before the committee again. Mr. Lunt reported that although Units 1 and 2 have exceeded the shelf life, they are 17 megawatt units so it does not take a lot of time to make a return on the investment. Referring to Page 5, Wholesale Cost-of-Service Summary (Projected), Mr. Blakeman requested clarification regarding the solar plant. Mr. Lunt explained that in this monthly report, the solar plant was rolled into the cost-of-service instead of listed as with solar and without solar because staff had a firm idea of when it was going to come online. Mr. Lunt informed members that the cost-of-service summary also includes the total Solar Renewable Energy Credits (SREC) and decisions will need to be made as to whether the City holds them, banks them, etc. He stated that, theoretically, the City could sell them, at least for the first year or two, until City Renewable Portfolio Supply Standards (RPS Standards) are developed which is required by January 2014. Responding to Mrs. Williams, Mr. Lunt stated that Delmarva Power also has excess credits. He explained that there is a market for selling the SRECs, although the price has decreased. Referring to the Capital Improvement Projects (CIP) for the Plant, beginning on Page 36, Mr. Lunt reported that the power plant conducted the Spring Outage and he is not aware of any related problems. The Committee recommended acceptance of the PACE/NAES Reports for March and April 2011. By consent agenda, Dr. McGlumphy moved for approval of the Committee’s recommendation, seconded by Mrs. Russell and carried by a unanimous roll call vote (Mr. Hare absent). Updates - National Pollution Discharge Elimination System (NPDES) Municipal Separate Storm Sewer Systems (MS4) Permit Mrs. Ann Marie Townshend, Director of Planning and Community Development, updated members on the status of the National Pollution Discharge Elimination System (NPDES) Municipal Separate Storm Sewer Systems (MS4) Permit.

CITY COUNCIL MEETING OF JUNE 27, 2011 PAGE 11 Mrs. Townshend explained that the City of Dover Municipal Separate Storm Sewer System (MS4) is the system of pipes that conveys water from the streets to surface water, stormwater ponds, and other infrastructure. The City’s MS4 is regulated under a permit through the Delaware Department of Natural Resources and Environmental Control (DNREC) as part of the Clean Water Act and DNREC’s authority to hold the permit is delegated from the US Environmental Protection Agency (EPA). She stated that the City’s permit began in 2003, expired in 2008, and has been administratively extended through DNREC. Mrs. Townshend reported that there are a number of issues with the permit, and the program in general, throughout the State of Delaware. Several municipal and county governments in New Castle County have experienced difficulty renewing their be under a new permit by now; however, DNREC has made it clear that it may take a year or more. She stated that DNREC has continued to provide the City with actions to take, in order to maintain the administrative extension. Previously, the City received a notice of violation for not completing several conditions of the permit and Mrs. Townshend reported that the violation was cleared in November 2010. She informed members that a report was submitted to DNREC listing the items that were not on the previous notice of violation and had not been completed. DNREC has indicated that the City should expect to receive another notice of violation, which is intended to allow the City to maintain the administrative extension until the beginning of 2012. Mrs. Townshend hoped that by that time the City will complete all actions for the permit that was initiated in 2003 and those items that have been added during the administrative extension. In response to Mrs. Williams, Mrs. Townshend stated that the City did not deliberately provide DNREC with the information in order to foster an administrative extension. She explained that the City has been working with DNREC for the past two (2) years but that there were a number of reasons for the City becoming non-compliant. Mrs. Townshend stated that there was a period of time, under previous managers at DNREC, that DNREC was not focused on the program or interacting proactively with the municipal governments that are regulated under the program. Additionally, the City was not adequately staffed and problems related to brown water diverted staff from spending a lot of time on the program. She stated that DNREC has kept the City under a notice of violation to prevent the EPA from taking over the permit. Responding to Mrs. Williams, Mrs. Townshend informed members that, at this time, the City is in sync with DNREC and staff is working to complete all actions associated with the permit. She stated that staff has been actively working to develop a number of brochures, a few of which have been completed during the past few months and several that should be completed later this summer and early fall. She also indicated that the City is required to develop and utilize a survey to measure the effectiveness of the City’s stormwater program and that staff will be working with students in the Wesley College Environmental Studies Program to develop a survey to be administered every two (2) years to monitor changes. Furthermore, Mrs. Townshend stated that, through the permit, staff has placed medallions on storm drains throughout the City and is expected under DNREC to install at least 50 medallions per year. She noted that undergraduate students in the Wesley College Environmental Studies Program are also being utilized to organize volunteer efforts to complete this.

CITY COUNCIL MEETING OF JUNE 27, 2011 PAGE 12 Mrs. Townshend informed members that Mr. Mark Nowak, GIS Coordinator, and Mr. Scott Koenig, Public Services Manager/Director of Public Works, have been working diligently on the GIS mapping of the storm sewer system and this will probably continue to be an ongoing project in perpetuity. Mrs. Townshend stated that through meeting with DNREC it is understood that the City will be required to complete yearly dry weather inspections of 33 stormwater pipe outlets to determine if water is coming out during dry weather, which would indicated some type of input into the system that is not stormwater. In response to Mr. Bonar, Mrs. Townshend stated that DNREC has not yet provided the criteria for performing these inspections; therefore, the definition of dry weather is not known at this time. Mr. Koenig clarified that although it depends on the system, he believed that DNREC will want the City to perform summer inspections of all outfalls to determine if there are additional inputs into the system during the driest conditions available. He also informed members that this requirement is not prescriptive in the legislation. Responding to Mr. Bonar, Mrs. Townshend stated that DNREC will be satisfied by the City’s annual report stating that the inspection of 33 outlets has been completed. In response to Mrs. Williams, Mrs. Townshend explained that if illicit discharges are found during the inspections, staff will have to discover where they are entering the system and address the problem. Responding to Mrs. Williams, Mrs. Townshend stated that having a sanitary sewer system or a greywater system connected to the stormwater system, residents not properly disposing of waste when working on their cars, and vendors pouring grease down storm drains during events held on The Green would be examples of illicit discharge. Mrs. Townshend informed members that employees are expected to attend training as part of the MS4 permit. She stated that, last September, 47 employees from the Public Works, Planning, Inspections, and Public Utilities departments attended a BlueCard Training Class, which provided a general overview of stormwater management. In addition, Mrs. Townshend indicated that Mr. Michael Albert, Planner II, and she attended the Certified Construction Reviewer class in March 2011 and both are now certified. She stated that, in conjunction with DNREC, she will develop additional training for City staff and noted that training for identifying an illicit discharge could be incorporated into safety training. Mrs. Townshend explained that while the City is responsible for the permit, stormwater management review authority is held by the Kent Conservation District; therefore, the City is required to enter into an administrative memorandum of understanding with the Kent Conservation District. She stated that staff presented a draft memorandum of understanding to the Kent Conservation District, has not received a response, and will follow up.

CITY COUNCIL MEETING OF JUNE 27, 2011 PAGE 13 Mrs. Townshend informed members that the City is required to submit an annual report to DNREC, and in the next annual report DNREC will want a budgetary report of funds spent to comply with the requirements of the permit. Additionally, Mrs. Townshend stated that an internal, staff-level stormwater committee will be developed and meet on a routine basis. In response to Mrs. Williams’ question regarding the City’s costs for this program, Mrs. Townshend stated that there are no costs to the City associated with this program, at this time, because it was a strategic item that was cut from the budget. She explained that staff is working to incorporate the program into other department functions in order to track the expenses. Mrs. Townshend reviewed the resources that are being utilized to accomplish the tasks associated with the MS4 permit. She emphasized the importance of Dr. Bruce Allison, Chair of the Environmental Studies program at Wesley College, who has provided student volunteers and offered limited funds for the program. Mrs. Townshend stated that, as a result of the assistance provided by Dr. Allison as well as that of the watershed coordinators that are shared by the City and DNREC, there has been no need to hire a consultant. She also explained that staff has researched possible grant applications; unfortunately, several applicable grants were discovered too late for the City to apply. Additionally, Mrs. Townshend mentioned that it may be possible to obtain funds through DNREC as long as the City provides staff, as is being done for the Silver Lake Revitalization Project. Mrs. Townshend reiterated that staff is working diligently on completing the tasks associated with the permit because she does not want the City to receive administrative penalties (fines) from DNREC or be turned over to the EPA for enforcement. Mr. Bonar requested that Mr. Koenig ensure that members are advised, well in advance, of any foreseen requests regarding infrastructure replacements that will be required, particularly if it appears that the City is in peril. Mr. Bonar also requested that staff be more proactive in finding available grants, as it is still early in the City and State fiscal year. Committee action not required. By consent agenda, Dr. McGlumphy moved for acceptance of the Utility Committee Report, seconded by Mrs. Russell and carried by a unanimous roll call vote (Mr. Hare absent). LEGISLATIVE, FINANCE, AND ADMINISTRATION COMMITTEE REPORT - JUNE 13, 2011 The Legislative, Finance, and Administration Committee met on June 13, 2011 with Chairman McGlumphy presiding.

CITY COUNCIL MEETING OF JUNE 27, 2011 PAGE 14 Discussion - Soliciting Health Insurance Proposals Mr. Hare explained that City Council has not reviewed alternative health care proposals since 1999 and suggested that the City solicit health insurance proposals from health care providers. He stated that he had conducted research which indicated that some jurisdictions offer plans similar to the City’s current plan at a lesser cost. In response to Mr. Shevock, Mrs. Kim Hawkins, Human Resources Director, explained that the City “piggybacks” on the State of Delaware’s health care plan and that there may be a requirement to provide notice to the State (perhaps 30 or 60 days) if the City decides to pursue a different option. In addition, she noted that the City’s union contracts stipulate participation in the State’s health care plan. Mrs. Hawkins indicated that if Council opts to proceed with the study and it is determined that the best choice is to depart from the State plan, the City would be required to go through the union negotiation process. Mrs. Williams advised members that, during their meeting of January 25, 2010, Council approved the establishment of an ad hoc Health Benefits Committee, which was charged with considering alternative health care options to assist the City in reducing its health care liability and annual cost. She stated that, to this point, the Health Benefits Committee has not found any plan that is competitive with the State plan. The Committee recommended that staff be directed to solicit requests for proposals for alternative health insurance plans for City employees. By consent agenda, Dr. McGlumphy moved for approval of the Committee’s recommendation, seconded by Mrs. Russell and carried by a unanimous roll call vote (Mr. Hare absent). Discussion - Elimination of Medicare Part B Reimbursements for Current Non-Bargaining Employees Mr. Hare requested that consideration be given to the elimination of Medicare Part B reimbursements for current non-bargaining employees as a cost-saving measure. Dr. McGlumphy stated that an opportunity would be provided for employees to comment regarding this agenda item. Mr. James Hosfelt, Chief of Police, read a prepared statement urging members to vote against any changes in the City’s Medicare Part B reimbursement policy. Ms. Donna Mills, Police Department Administrative Assistant, advised members that she is planning to retire at the end of 2011. She stated that she appeared before the Committee in December 2009 to request that Medicare Part B reimbursement be maintained, and she reiterated that request. Mrs. Mills stated that she felt that Council was misinformed by those who indicate that non-bargaining employees should “take a hit like the union people have done.” She noted that, even though she does an excellent job, she has received minimal pay raises because she is a non- bargaining employee in a pay grade considered to be above-market under the Pay for Performance Plan. She also noted that she was required to take furlough days during FY 2010 due to budget constraints. Ms. Mills stated that she wrote a memorandum to City Council to explain her concerns and requested members to consider this information.

CITY COUNCIL MEETING OF JUNE 27, 2011 PAGE 15 Ms. Christina Kober, 911 Manager, Police Department, read a prepared statement asking that members retain the Medicare Part B reimbursement benefit. Mr. Stephen Enss, Engineering Services and System Operations Superintendent, Public Utilities Department, spoke in favor of retaining Medicare Part B reimbursement, stating that he joined the City’s workforce 22 years ago. He noted that, at that time, he promised to serve the City for a minimum of 25 years and, in return, the City committed to provide him benefits. Mr. Enss stated that he has planned his future based on the assumption that he would receive the benefits promised. Mr. Chappy Lucas stated that he is a retired City of Dover employee currently receiving Medicare Part B reimbursement. He noted that when he began working for the City in 1972, the City offered a benefit package which included health care. When he retired 28 years later, this package was in effect. Mr. Lucas explained that when he turned 65, he was contacted by the City and told that he must enroll in Medicare Part B, and at that point Medicare became his primary insurance and the City’s plan became his secondary insurance. Mr. Lucas stated that he felt the City has fulfilled its obligation to provide medical insurance to him; however, reducing this benefit would amount to reducing his pension. He indicated that retired individuals would have no way to recover these funds, since they are unable to increase earnings and have not been receiving cost of living increases. He requested that members not take any action that would affect those who are currently receiving this benefit. Mr. Ronald Lunt, Public Utilities Director, stated he understands the concerns of the Committee and Council regarding the cost of employee benefit packages which must be borne by taxpayers and ratepayers. He explained, however, that the Utilities Department has a number of key positions that require highly skilled, technical professionals, such as engineers and relay engineers, and noted that if the City continues to degrade the employee benefit package, it will be difficult to attract and retain these employees. Mr. Lunt stated he feared for future City operations if benefits are reduced. Mr. Hare stated his opinion that employee benefits have not been degraded and that the City currently pays 100% of employee health care and 75% of family health care costs. He noted that retaining the Medicare Part B reimbursement benefit would obligate future Councils to an expense that has increased 8% per year. Mr. Hare indicated that one (1) option would be to inform employees that they are not required to enroll in Medicare Part B but can remain on their current health plan. He proposed that, rather than eliminating this benefit, reimbursement be reduced as follows: 1) Employees who are eligible to retire as of September 15, 2011 would have no change to this benefit. 2) Employees who have more than 15 years of service and retire after September 15, 2011 would receive Medicare Part B reimbursement capped at $140. 3) Employees with more than ten (10) years of service would receive reimbursement capped at $110. 4) Employees with less than ten (10) years of service are not vested and would not receive this benefit.

CITY COUNCIL MEETING OF JUNE 27, 2011 PAGE 16 Mr. Hare noted that under this proposal, retired employees would not be affected. Mr. Anderson felt that Medicare Part B reimbursement is unsustainable and stated he did not support continuing it to those who are retiring. He indicated that he was unable to find any other organization in the State, including counties or other municipalities, that provide this benefit. Mr. Anderson noted that the cost of the benefit in 2002 was $50 per month, currently it is $100 per month, and that cost projections are “astounding.” He indicated he planned to vote against retaining this benefit. Mr. Shevock explained that Medicare Part B reimbursement was considered by members in 2009 with much discussion involving many of the points currently being brought forth. During the City Council meeting of July 27, 2009, Council eliminated this benefit for employees hired after that date. Mr. Shevock noted that prior to July 27, 2009, the City Employee Handbook stated that the City would provide reimbursement. He suggested that the City Solicitor be consulted to determine if the City could be subject to legal ramifications, should members opt to eliminate this benefit for current employees. Mr. Shevock noted that the number of plan participants will reduce by attrition and at some point there will be no remaining participants. Mr. Hutchison stated he was aware of the serious financial concerns faced by the City but felt that employees should be treated fairly. He noted that the three (3) union groups who gave up Medicare Part B did so because they received something in return and that employees who participate in the general pension plan have no ability to bargain regarding this benefit. Mr. Hutchison felt that all employees who are vested by July 1, 2011 should be protected. He stated he would be open to considering an alternative for those employees who are not vested. Dr. Jones stated that she was not in favor of removing benefits from employees who are vested and felt that the City has an obligation toward these individuals. She suggested considering an alternative program that might involve shared financial responsibility between the City and employees. Mrs. Williams indicated that she felt the City had an obligation to honor the promise made to employees who have served ten (10) years. She stated this would involve 42 employees at a cost of $62,000 per year and that this was a price that the City could afford. Concurring with Mrs. Williams, Mr. Bonar stated he would not vote in favor of eliminating this benefit to vested employees. He suggested pursuing Dr. Jones’ suggestion to develop a sliding scale for payment, with the City’s contribution based on the employee’s years of service, perhaps including employees with five (5) years of service. Responding to Mr. Bonar, Councilman Hare declined to amend the motion by adopting Dr. Jones’ suggestion to implement a sliding payment scale. Dr. McGlumphy requested the City Clerk to obtain a legal opinion from the City Solicitor to ensure the legality of the motion.

CITY COUNCIL MEETING OF JUNE 27, 2011 PAGE 17 The Committee tabled the matter and requested that a legal opinion be sought from the City Solicitor to determine the legality of eliminating Medicare Part B reimbursement for non-vested, non-bargaining employees in light of Council’s action related to this matter on July 27, 2009 and that the matter be scheduled for reconsideration at a subsequent meeting. By consent agenda, Dr. McGlumphy moved for approval of the Committee’s recommendation, seconded by Mrs. Russell and carried by a unanimous roll call vote (Mr. Hare absent). Proposed Ordinance - #2011-11 - Chapter 102 - Taxation, Article IV - Abatement of Real Estate Taxes, Section 102-113 - Qualifications Mr. William Neaton, Economic Development Manager, advised members that, over the past several years, a number of large, commercial buildings in the City have become vacant and remained unoccupied. These buildings include a variety of prior uses, such as retail stores, warehouse space, manufacturing, and office buildings. Mr. Neaton noted that bringing these buildings back into the active economy would help increase jobs and boost the local economy. He indicated that Mayor Carey requested staff to research a tax abatement program for large, unoccupied facilities in the City, resulting in the development of Proposed Ordinance #2011-11. This ordinance would act as an incentive for potential buyers and lessees who propose reoccupying or replacing vacant buildings. In order to qualify, the building would have to lease 35,000 S.F. and must have been vacant for 18 months or more. The new occupant would be required to commit to occupying the building for at least ten years and bring at least 15 full-time jobs to the building. Mr. Neaton explained that he discussed this matter with a number of area developers and realtors and that a similar approach was adopted in Frederick, Maryland, with very positive results. Members were provided an email from Ms. Cheryl Russell, Tax Assessor, dated June 9, 2011, containing information regarding specific properties that would qualify for tax abatement under this proposal. Mr. Phil McGinnis, McGinnis Real Estate Company, 555 E. Loockerman Street, expressed his appreciation for Council’s consideration of the ordinance. He advised members that when developers and realtors met with City staff regarding the matter, discussion was raised about providing this benefit to businesses leasing 25,000 S.F.; however, he noted that the Proposed Ordinance includes a threshold of 35,000 S.F. Mr. McGinnis encouraged members to consider stipulating 20,000 or 25,000 S.F., since most “big box” establishments fall within that range. He explained that a number of the establishments that would qualify for the abatement could be subdivided into smaller units to take advantage of this incentive. He thanked members for their consideration of this “great” ordinance. In response to Dr. Jones, Mr. Neaton explained that the 35,000 S.F. threshold was modeled after the ordinance adopted by the Town of Frederick, Maryland; however, he stated that staff supported a smaller size. Mr. Scott Kidner, speaking on behalf of the Central Delaware Chamber of Commerce, stated that the Proposed Ordinance presented an outstanding opportunity to send a positive message to the business community. He advocated a 20,000 or 25,000 S.F. threshold and offered full support for the Proposed Ordinance.

CITY COUNCIL MEETING OF JUNE 27, 2011 PAGE 18 Mr. Bonar urged members to give favorable consideration to amending the size stipulation to 20,000 S.F., which would provide greater incentive to establish businesses in the City. Staff recommended adoption of the proposed amendments to Chapter 102 - Taxation, Article IV - Abatement of Real Estate Taxes, Section 102-113 - Qualifications. The Committee recommended amending Proposed Ordinance #2011-11 by reducing the threshold for the amount of space required to be leased in order to qualify for tax abatement to 20,000 S.F. By consent agenda, Dr. McGlumphy moved for approval of the Committee’s recommendation, seconded by Mrs. Russell and carried by a unanimous roll call vote (Mr. Hare absent). The Committee recommended adoption of Proposed Ordinance #2011-11, as amended. By consent agenda, Dr. McGlumphy moved for approval of the Committee’s recommendation, seconded by Mrs. Russell and carried by a unanimous roll call vote (Mr. Hare absent). (The First Reading of Proposed Ordinance #2011-11 will take place during the latter part of the meeting.) Proposed Ordinance #2011-14 - Appendix B - Zoning, Article 10 - Planning Commission Mrs. Ann Marie Townsend, Director of Planning and Community Development, explained that during the previous year, Council assigned the Planning Office the goals of streamlining application processes and expanding public notice requirements. To meet this goal, the Planning Office began a thorough review of Article 10 of the Zoning Ordinance. Mrs. Townshend advised members that Article 10 specifies the requirements for all applications that appear before the Planning Commission and Historic District Commission, as well as administrative plan review and amendments to the Zoning Ordinance. She noted that, in reviewing the Ordinance, staff worked to improve consistency throughout sections of the Article, standardize processes where possible, and streamline zoning review for small projects and changes of occupancy that do not include site disturbance. Mrs. Townshend stated that the Planning Office released a draft ordinance in late April 2011 and held subsequent meetings with the real estate, development, and engineering communities. The draft ordinance was also shared with the Historic District Commission. She indicated that overall feedback has been positive. Many of the questions asked at the outreach meetings related to the increase in public notice distance requirements from 200 feet to 300 feet and the addition of a physical posting requirement. Mrs. Townshend provided members an Updated Summary Sheet of Comments Received regarding the proposed changes to the Zoning Ordinance, as well as related correspondence received from Mr. Gregory Moore, Vice President, Becker Morgan Group, Inc. In addition, she provided members a revised version of Proposed Ordinance #2011-14 which was updated in response to input received during a meeting held with municipal land use attorneys on June 9, 2011. She explained that changes from the draft ordinance previously provided to members were noted on this version in blue ink.

CITY COUNCIL MEETING OF JUNE 27, 2011 PAGE 19 Mrs. Townshend outlined some of the major changes proposed to the Zoning Ordinance as follows: 1) Expiration of Plans - Site plans or conditional use permits are currently approved by the Planning Commission for a one (1) year period. If construction has not begun within that time, a one (1) year extension may be granted. Due to the current economy and increases in the regulatory framework outside the City’s jurisdiction, two (2) years does not allow applicants enough time. Under the new Ordinance, the Planning Commission would grant a 24-month approval and the applicant would be eligible for a one (1) year extension. 2) Public Notice - During the meetings held on September 14, 2010, and September 28, 2010, staff received direction from the Committee and Council, respectively, to incorporate an increase in the required mailing distance for public notice from 200 feet to 300 feet. The revised ordinance includes this change and also increases the timeline for public notice from 10 days to 15 days, primarily for consistency with Title 22 of the Delaware Code. A physical posting of the change in land use would also be required by the proposed ordinance, which is included in the codes of many Delaware municipalities. 3) Addition of a Zoning Review Process Within the Site Plan Development Section - Currently in nearly all cases a change from one use to another (e.g., retail to restaurant or store to insurance office) requires an administrative site plan which involves a $125 fee, drawing and submission of a plan, distribution to various agencies, and collection of comments. This process may be unnecessary if site modifications are not being proposed and zoning requirements are met. In addition, staff recommended requiring Planning Commission review of non-residential site plans with more than 1,500 S.F. of disturbance, rather than in excess of 500 S.F. as stated in the current Zoning Ordinance. 4) Conditional Use Permits - The current Zoning Ordinance does not afford due process for revocation of conditional use. The Proposed Ordinance includes a process that ensures that conditional use cannot be revoked without an advertised public hearing through the Planning Commission. In response to Dr. McGlumphy, Mrs. Townshend stated that the Proposed Ordinance has been in progress since August 2010. Meetings have been held with developers, realtors, the civil engineering community, and municipal and land use lawyers. She advised members that staff has does their best to make sure that the community is aware of the proposal. In response to Mr. Hare, Mrs. Townshend indicated that Planning Staff recommendations listed on the Updated Summary of Comments have not been incorporated in the revised Ordinance provided to members, but would be included when the Ordinance is presented to Council for a First Reading.

CITY COUNCIL MEETING OF JUNE 27, 2011 PAGE 20 Mr. Anderson stated he supported extending the required mailing distance for public notification to 300 feet, noting he felt it was not unreasonable to inform residents in this range regarding activity near their properties. Mr. Lynn stated that this matter was discussed at a meeting he hosted on June 9, 2011 which was attended by Mrs. Townshend and several land use and municipal law attorneys, and the consensus was that a 300-foot notification requirement would be expensive, onerous, and cumbersome. Mr. Lynn noted that the overall feeling of the group was that Mrs. Townshend did an excellent job with the Ordinance and that few other concerns were raised. The Committee recommended amending Proposed Ordinance #2011-14, by incorporating the Planning Staff recommendations reviewed by the Committee. By consent agenda, Dr. McGlumphy moved for approval of the Committee’s recommendation, seconded by Mrs. Russell and carried by a unanimous roll call vote (Mr. Hare absent). The Committee recommended adoption of Proposed Ordinance #2011-14, as amended. By consent agenda, Dr. McGlumphy moved for approval of the Committee’s recommendation, seconded by Mrs. Russell and carried by a unanimous roll call vote (Mr. Hare absent). (The First Reading of Proposed Ordinance #2011-14 will take place during the latter part of the meeting.) Proposed Ordinance #2011-15 - Appendix A - Subdivisions - Regarding Homeowners’ Association Responsibilities Due to time constraints, Dr. McGlumphy requested that this item be deferred until the next meeting. Public Comment Period There was no one wishing to speak during the public comment period. By consent agenda, Dr. McGlumphy moved for acceptance of the Legislative, Finance, and Administration Committee Report, seconded by Mrs. Russell and carried by a unanimous roll call vote (Mr. Hare absent). PROPOSED AMENDMENT TO FINANCIAL POLICIES - GENERAL FUND TRANSFERS Mrs. Donna Mitchell, Controller/Treasurer, reminded members that during the Budget Review (on June 6, 2011), staff recommended increasing the transfer from the Electric Utility from 6.5% to 8%, and that it be accomplished through an amendment to the Financial Policy. As a result, staff recommended amending the Financial Policy, as follows: Revenue Policy – Section 11 Upon satisfying all rate covenants the City will provide operating transfers to the General Fund. From the Water/Wastewater Utility no greater than 4.5% of operating revenues or $750,000 and from the Electric Utility no greater than 6.5% 8.0% of operating revenues. or $7,250,000 of the utility operating revenues. Both transfer calculations will exclude the carry forward budget balance, County Sewer Fees, and State Utility Tax. The Utility transfers will not exceed 25% of the General Fund Revenues.

CITY COUNCIL MEETING OF JUNE 27, 2011 PAGE 21 Dr. McGlumphy moved for approval of staff’s recommendation to amend Section 11 - Revenue Policy of the Financial Policy, seconded by Mrs. Williams and carried by a unanimous roll call vote (Mr. Hare absent). REQUESTS FOR EXTENSION OF REZONING APPROVALS In accordance with Article 10, Section 5.183 of the Zoning Code, if construction has not started or a satisfactory explanation for the failure to commence construction has not been received within one year from the effective date of the amendment to the zoning map, an amendment to rezone the land to its prior classification shall be automatically placed on the agenda to be reconsidered by City Council. Members considered requests for extension of rezoning approvals, as follows: Property Located on the South Side of White Oak Road, Owned by TLFD Management, LLC Members were reminded that during their Regular Meeting of May 24, 2010, City Council approved the rezoning of property located on the south side of White Oak Road, south of Mourning Dove Lane, consisting of 12.78+/- acres, owned by TLFD Management, LLC, from R-20 (One Family Residence) and subject o the SWPOZ (Source Water Protection Overlay Zone) to R-8 (One Family Residence) and subject to the SWPOZ (Adoption of Ordinance #2010-04). (TAX PARCEL: LC05- 068.00-01-18.00-000; PLANNING REFERENCE: Z-10-01) Mrs. Ann Marie Townshend, Director of Planning and Community Development, advised members that the applicant has submitted a request for extension of the current zoning classification and indicated that the proposed construction is under review by the appropriate regulatory agencies. She stated that the applicant submitted a Conceptual Subdivision Plan that was approved by the Planning Commission on September 20, 2010 and that the next step in the City’s process will be to submit the Preliminary Subdivision Plan. The correspondence from the applicant indicates that they are working with the Kent Conservation District on their stormwater design. Mrs. Townshend stated that staff confirmed that the applicant submitted a development application, and that the conceptual approval granted by the Planning Commission remains active. As the property is actively in the development process, staff recommended that City Council extend the approval of the R-8 (One Family Residence Zone) zoning on this property, noting that the applicant has given a satisfactory explanation for failure to commence construction and has given reasonable assurances that construction will commence in a timely manner. Dr. McGlumphy moved for approval of the extension of the rezoning approval for property located on the south side of White Oak Road, south of Mourning Dove Lane, consisting of 12.78+/- acres, owned by TLFD Management, LLC, to R-8 and subject to the SWPOZ for an additional year. The motion was seconded by Mr. Bonar and carried by a unanimous roll call vote (Mr. Hare absent). Property Located at 1169 South State Street, Owned by Young Men’s Christian Association of Delaware, Inc. Members were reminded that during their Regular Meeting of May 24, 2010, City Council approved the rezoning of property located at 1169 South State Street, consisting of 0.6899+/- acres (30,052+/- s.f.) from RG-O (General Residence and Office) to IO (Institutional and Office) (Adoption of Ordinance #2010-10). (TAX PARCEL: ED05-077.17-05-58.00-000; PLANNING REFERENCE: Z-10-04)

CITY COUNCIL MEETING OF JUNE 27, 2011 PAGE 22 Mrs. Ann Marie Townshend, Director of Planning and Community Development, advised members that the applicant submitted a request for extension of the current zoning classification, stating that the proposed construction is under review by the appropriate regulatory agencies. The Planning Commission issued conditional approval for a Site Development Plan (File #S-10-13) in June 2010. The applicant has submitted a request for a one-year extension to the Planning Commission which was approved during their meeting on June 20, 2011. They are actively working toward completion of the final site plan and progressing with agency reviews and approvals, including City departments, the Kent Conservation District and the Delaware Department of Transportation. Mrs. Townshend stated that the Planning Staff confirmed that the applicant submitted a development application, and that the conditional approval granted by the Planning Commission remains active. As the property is actively in the development process, staff recommended that City Council extend the approval of the IO (Institutional and Office Zone) zoning on this property, noting that the applicant has given a satisfactory explanation for failure to commence construction and has given reasonable assurances that construction will commence in a timely manner. Mrs. Russell moved for approval of the extension of the rezoning approval for property located at 1169 South State Street, consisting of 0.6899+/- acres (30,052+/- s.f.), owned by Young Men’s Christian Association of Delaware, Inc. (YMCA), to IO for an additional year. The motion was seconded by Mr. Bonar and carried by a unanimous roll call vote (Mr. Hare absent). Property Located at 1051 College Road, Owned by JNK, LLC Members were reminded that during their Regular Meeting of April 12, 1010, City Council approved the rezoning of property located at 1051 College Road, consisting of 4.32+/- acres, less a street right-of-way area consisting of 0.55+/- acres from R-8 (Single Family Residence) to RG-2 (General Residence). (Adoption of Ordinance #2009-09). (TAX PARCEL: ED05-067.00-01-35.03-000; PLANNING REFERENCE: Z-09-05). Mrs. Ann Marie Townshend, Director of Planning and Community Development, advised members that the applicant submitted a request for extension of the current zoning classification, stating that the proposed construction is under review by the appropriate regulatory agencies. The Planning Commission issued conditional approval for a Conditional Use Site Development Plan (File #C-10-02) in August 2010. The applicant submitted a request for a one-year extension to the Planning Commission for consideration on July 18, 2011. Mrs. Townshend stated that the Planning Staff confirmed that the applicant submitted a development application, and that the conditional approval granted by the Planning Commission remains active. As the property is the subject of an active development application, staff recommended that City Council extend the approval of the RG-2 (General Residence Zone) zoning on this property, since the applicant has given a satisfactory explanation for failure to commence construction and has given reasonable assurances that construction will commence in a timely manner. Mr. Bonar moved for approval of the extension of the rezoning approval for property located at 1051 College Road, consisting of 4.32+/- acres, less a street right-of-way area consisting of 0.55+/- acres that divides the original tract into two (2) pieces, owned by JNK, LLC, to RG-2 for an additional year. The motion was seconded by Mr. Hutchison and carried by a unanimous roll call vote (Mr. Hare absent).

CITY COUNCIL MEETING OF JUNE 27, 2011 PAGE 23 FIRST READING - PROPOSED ORDINANCE #2011-11 Council President Leary reminded the public that copies of the proposed ordinance are available at the entrance of the Council Chambers or can be obtained from the City Clerk's Office. Final action by Council on the proposed ordinance will take place during the Council Meeting of July 11, 2011. In accordance with Section 1-9 of the Dover Code, Council acknowledged the First Reading of the Ordinance Amendment as read by the City Clerk, by title only, as follows: CHAPTER 102 - TAXATION, ARTICLE IV - ABATEMENT OF REAL ESTATE TAXES, SECTION 102-113 - QUALIFICATIONS FIRST READING - PROPOSED ORDINANCE #2011-14 Council President Leary reminded the public that copies of the proposed ordinances are available at the entrance of the Council Chambers or can be obtained from the City Clerk's Office. Since the ordinances are amendments to the Zoning Code, a public hearing is required. Staff recommended referral of the amendments to the Planning Commission on July 18, 2011, and that a public hearing take place during the Council Meeting of August 8, 2011, at 7:30 p.m., at which time final action by Council will take place. Mrs. Williams moved to refer the amendments to the Planning Commission on July 18, 2011 and that a public hearing be set before City Council for August 8, 2011 at 7:30 p.m., as suggested by staff. The motion was seconded by Mr. Bonar and unanimously carried. In accordance with Section 1-9 of the Dover Code, Council acknowledged the First Reading of the Zoning Ordinance Amendments as read by the City Clerk, by title only, as follows: APPENDIX B - ZONING, ARTICLE 10 - PLANNING COMMISSION FINAL READING - ORDINANCE #2011-16 - BUDGET ORDINANCES - 2011/2012 CITY OF DOVER BUDGET Mr. Hutchison moved that the Final Reading of Proposed Ordinance #2011-16 - Budget Ordinances, be acknowledged by title only, seconded by Mrs. Williams and unanimously carried. Dr. McGlumphy thanked members of City Council, and City staff for their work on this year’s budget and read the following statement into the record: What does this budget do for the citizens of Dover. This budget does not increase rates or taxes over the prior year. It provides the citizens with a decrease on their electric bills through a power cost adjustment credit of approximately $.0085. We want to make sure our citizens know we are listening to their concerns and challenges they face during a time when many aren't getting raises and are losing jobs and their homes. We believe this budget maintains the quality of service to our residents.

CITY COUNCIL MEETING OF JUNE 27, 2011 PAGE 24 While the budget includes increases due to contractual requirements, both for a couple of our Unions and some vendor contracts, it counters the affect of these with reductions in other areas. This budget also provides us with an operating plan for Fiscal Year 2012 and buys us time to take a closer look at the City organization and develop strategies to close the gap between our revenues and expenses before Fiscal Year 2013. When I speak of strategies, I'm not referring only to increased fees and taxes, but operational efficiencies and cost reductions. We know there are many reductions in capital projects that if not addressed will have more costly implications. However, we will be addressing our future obligations and a long-term planning strategy during the next few months. We as Council Members hope everyone in the organization also gets what our constituents are telling us. We heard you speak to us during the budget hearings about cutting positions and some with their spouses being out of work. So you should have first hand knowledge of what this is like and hopefully have the support of your co-workers to help keep employed our current employee's at this time. This budget makes way for the next step. Mr. Anderson relayed his appreciation to City staff, as well as members of Council, for their diligence, efforts made, and seriousness in working on the budget during the past few weeks. It was his hope that if more funds were made available, the City would place a high priority on dedicating such funds to the wastewater treatment area. Mrs. Williams moved for adoption of Ordinance #2011-16 - 2011/12 City of Dover Budget (Exhibit #2). The motion was seconded by Mrs. Russell and carried by a unanimous roll call vote (Mr. Hare absent). COUNCIL MEMBERS ANNOUNCEMENTS Council President Leary relayed a special “thank you” to Sam’s Club and Lowe’s of Dover, noting that through their generosity, the City was able to donate 100 cooling fans to the elderly and disabled in the City of Dover. In addition, Council President Leary stated that the new City of Dover website is up and running and if problems are discovered, City staff should be contacted. Mr. Bonar announced that there are 363 days before the next African American Festival. In addition, he stated that on Monday, a 4th of July celebration will be held at the Legislative Mall and that there will be activities for all to enjoy (www.Doverfourthofjuly.com - for program information). He noted that the 4th of July Committee is still accepting donations for sponsorship and that individuals can “adopt a firework” for $17.76.

CITY COUNCIL MEETING OF JUNE 27, 2011 PAGE 25 Mrs. Russell advised members that the Dover Youth Advisory Committee will be holding “Dover Fun Day” at Schutte Park on July 30, 2011 from 11:00 a.m. to 2:00 p.m. More information will be made available soon on the City’s website and Facebook. She noted that sponsors and volunteers are needed. Mr. Bonar moved for adjournment, seconded by Dr. McGlumphy and unanimously carried. Meeting Adjourned at 7:57 P.M. TRACI A. McDOWELL CITY CLERK All orders, ordinances, and resolutions adopted by City Council during their Regular Meeting of June 27, 2011, are hereby approved. CARLETON E. CAREY, SR. MAYOR /TM/jg S:\AGENDAS & MINUTES\Council-Minutes\2011\06-27-2011 COUNCIL.wpd Exhibits Attached to Original Minutes and File Copy Exhibit #1 - Recycling Services Reimbursement Agreement (Contract #11-URG025) between the Delaware Department of Natural Resources and Environmental Control (DNREC) and the City of Dover Exhibit #2 - Ordinance #2011-16 - 2011/12 City of Dover Budget

EXHIBIT #1 Regular Council Meeting of 06/27/2011

EXHIBIT #2 Regular Council Meeting of 06/27/2011 CITY OF DOVER ORDINANCE #2011-16 1 2011-2012 BUDGET ORDINANCES 2 GENERAL FUND - CASH RECEIPTS AND BUDGET FOR 2011-2012 3 4 BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE CITY OF DOVER, IN COUNCIL MET: 5 The amount hereinafter named aggregating Thirty Eight Million Sixty Thousand Ninety Nine dollars ($38,060,099) 6 or so much thereof as may be necessary are hereby appropriated from current revenues and other funds 7 for the use by several departments of the Municipal Government for the fiscal year beginning July 1, 2011 8 and ending June 30, 2012: 9 2010/11 2011/12 10 REVISED BUDGET 11 RECEIPTS 12 PRIOR YEAR BALANCE $ 2,655,562 $ 3,322,305 13 FINES AND POLICE REVENUE 578,889 579,000 14 911 FEE 60,000 60,000 15 INVESTMENT INCOME 116,000 215,900 16 LIBRARY REVENUES 44,100 44,100 17 KENT COUNTY BOOK REIMBURSEMENT 390,900 390,900 18 BUSINESS LICENSES 1,470,000 1,523,675 19 PERMITS AND OTHER LICENSES 892,000 934,000 21 MISCELLANEOUS CHARGES 65,750 165,750 22 POLICE EXTRA DUTY 300,000 300,000 23 PROPERTY TAXES 10,982,634 11,133,367 24 BID REVENUE 52,692 51,821 25 RECREATION REVENUE 141,500 152,000 26 FRANCHISE FEE 520,000 520,000 27 TRASH FEES 2,050,000 2,050,000 28 DSWA TRASH FEE REBATE 141,635 - 29 RENT REVENUE - GARRISON FARM 87,000 87,000 30 COURT OF CHANCERY FEES 715,000 690,000 31 RECEIPTS SUBTOTAL 21,263,662 22,219,818 32 33 INTERFUND SERVICE RECEIPTS 34 INTRAFUND SERVICE RECEIPTS WATER/WASTEWATER 944,580 988,393 35 INTRAFUND SERVICE RECEIPTS ELECTRIC 3,293,025 3,370,778 36 INTERFUND SERVICE RECEIPTS SUBTOTAL 4,237,605 4,359,171 37 38 GRANTS 39 POLICE RELATED 80,000 60,000 40 CAPITAL SCHOOL DISTRICT REVENUE 73,500 73,500 41 POLICE PENSION GRANT 620,000 620,000 43 RECREATION GRANTS 51,000 - 45 HOMELAND SECURITY GRANT 188,061 - 47 GRANTS SUBTOTAL 1,012,561 753,500 48 49 TRANSFERS FROM 50 TRANSFER TAX 1,400,000 900,000 51 MUNICIPAL STREET AID 526,814 526,814 52 CIVIL TRAFFIC PENALTIES 1,000,000 1,000,000 53 WATER/WASTEWATER - 424,508 54 ELECTRIC 8,856,000 7,876,288 60 TRANSFERS FROM SUBTOTAL 11,782,814 10,727,610 61 62 TOTALS $ 38,296,642 $ 38,060,099

63 64 2010/11 2011/12 65 DEPARTMENT EXPENSES REVISED BUDGET 66 CITY CLERK $ 278,868 $ 296,393 67 COUNCIL 128,944 120,699 68 TAX ASSESSOR 269,721 213,175 69 FIRE 665,732 684,725 70 GROUNDS MAINTENANCE 1,029,824 979,922 71 LIBRARY 1,064,547 1,159,087 72 RECREATION 811,261 789,701 73 LIFE SAFETY 512,792 449,226 74 CODE INFORCEMENT 293,540 284,489 75 PLANNING 409,937 422,781 76 INSPECTIONS 561,668 553,907 77 ECONOMIC DEVELOPMENT 229,938 223,717 78 POLICE 12,245,023 12,955,807 79 POLICE EXTRA DUTY 449,516 430,600 80 STREETS 837,040 782,810 81 SANITATION 2,253,529 2,330,976 82 CITY MANAGER 576,782 622,127 83 INFORMATION TECHNOLOGY 688,969 685,871 84 FINANCE 802,269 852,283 85 PUBLIC SERVICES - ADMINISTRATION 367,646 472,692 86 FACILITIES MANAGEMENT 926,252 952,693 87 CENTRAL SERVICES 648,859 693,339 88 FLEET MAINTENANCE 730,432 695,422 89 CUSTOMER SERVICES 866,691 928,112 90 HUMAN RESOURCES 336,035 384,758 91 MAYOR 88,335 81,154 93 DEPARTMENT SUBTOTALS 28,074,150 29,046,466 94 95 OTHER EXPENSES 96 DEBT SERVICE 331,800 327,270 97 TRANSFER TO CONTINGENCY 172,061 - 99 INSURANCE 550,000 550,000 100 RETIREES HEALTH CARE 1,297,509 1,374,709 102 PENSION UNFUNDED LIABILITY 1,449,978 1,450,000 103 POLICE PENSION FUND 620,000 620,000 104 POLICE PENSION UNFUNDED LIABILITY 95,000 95,000 105 UNCOLLECTIBLES - TRASH AND OTHER 110,000 10,000 109 STREET LIGHTS 960,000 960,000 110 OTHER EXPENSE SUBTOTAL 5,586,348 5,386,979 111 116 TRANSFERS 119 TRANSFER TO CAPITAL FUND - PROJECTS 1,307,839 623,847 120 TRANSFER TO CAPITAL FUND - RESERVE - 200,000 124 TRANSFER TO CDBG FUND 6,000 - 129 TRANSFERS SUBTOTAL 1,313,839 823,847 130 131 CURRENT YEAR BALANCE 3,322,305 2,802,807 136 137 TOTALS $ 38,296,642 $ 38,060,099 138 139 The City Manager is hereby authorized, without further approval of the City Council, to make 140 inter-departmental transfers of up to five percent of the amount hereinafter appropriated to any 141 department except that the City Manager shall not make any transfers prohibited by City 142 Procedure #F306 and/or #F306ADD.

143 2011-2012 BUDGET ORDINANCES - CONTINUED 144 145 GOVERNMENTAL CAPITAL PROJECTS FUND 146 CASH RECEIPTS/REVENUES AND BUDGET FOR 2011-2012 147 148 BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE CITY OF DOVER, IN COUNCIL MET: 149 The amount hereinafter named aggregating Fourteen Million Twenty Four Thousand Nine 150 Hundred Forty Seven dollars ($14,024,947) or so much thereof as may be necessary are hereby 151 appropriated from current revenues and other funds for the use by several departments of the 152 Municipal Government for the fiscal year beginning July 1, 2011 and ending June 30, 2012: 153 154 CASH RECEIPTS 155 2010/11 2011/12 156 REVISED BUDGET 157 BEGINNING BALANCE - PROJECTS $ 227,592 $ 195,191 158 STATE GRANTS 4,232,348 5,597,505 159 INTEREST EARNINGS 10,900 10,900 160 RECREATION GRANTS 34,583 - 161 POLICE GRANTS 38,000 - 162 LIBRARY BOND ISSUE/CONTRIBUTIONS 1,000,000 2,334,889 163 TRANSFER FROM GENERAL FUND FOR PROJECTS 1,307,839 623,847 164 TRANSFER FROM LIBRARY RESERVE 2,363,732 3,262,615 165 PARKLAND RESERVE RECEIPT 36,872 - 166 BOND PROCEEDS - 2,000,000 167 168 TOTALS $ 9,251,866 $ 14,024,947 169

170 GOVERNMENTAL CAPITAL PROJECTS FUND - CONTINUED 171 CASH RECEIPTS/REVENUES AND BUDGET FOR 2011-2012 172 173 EXPENSE SUMMARY 174 175 2010/11 2011/12 176 DEPARTMENT EXPENSES REVISED BUDGET 177 FIRE 223,700 244,820 178 GROUNDS MAINTENANCE 46,517 - 179 LIBRARY 7,630,663 11,195,009 180 RECREATION 81,872 30,000 181 POLICE 322,830 65,000 182 STREETS 454,476 1,230,027 183 SANITATION 212,419 136,500 184 INFORMATION TECHNOLOGY 7,000 6,400 185 MAYOR 52,198 - 186 DEPARTMENT SUBTOTAL 9,031,675 12,907,756 187 188 TRANSFERS 189 TRANSFER TO COMMUNITY TRANS FUND 318 25,000 - 190 CURRENT YEAR BALANCE - BOND PROCEEDS - 1,000,000 191 CURRENT YEAR BALANCE 195,191 117,191 192 193 TOTALS $ 9,251,866 $ 14,024,947 194 199 The City Manager is hereby authorized, without further approval of the City Council, to make 200 inter-departmental transfers of up to five percent of the amount hereinafter appropriated to any 201 department except that the City Manager shall not make any transfers prohibited by City 202 Procedure #F306 and/or #F306ADD.

203 2011-2012 BUDGET ORDINANCES - CONTINUED 204 205 GENERAL FUND CONTINGENCY 206 CASH RECEIPTS/REVENUES AND BUDGET FOR 2011-2012 207 208 BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE CITY OF DOVER, IN COUNCIL MET: 209 The amount hereinafter named aggregating Seven Hundred Twenty Five Thousand Five Hundred Fifty 210 Four dollars ($725,554) or so much thereof as may be necessary are hereby appropriated from current 211 revenues and other funds for the use by several departments of the Municipal Government for the 212 fiscal year beginning July 1, 2011 and ending June 30, 2012: 213 214 CASH RECEIPTS 215 2010/11 2011/12 216 REVISED BUDGET 217 BEGINNING BALANCE $ 530,393 $ 725,554 218 INTEREST EARNINGS 23,100 - 219 TRANSFER FROM GENERAL FUND 172,061 - 220 221 TOTALS $ 725,554 $ 725,554 222 223 EXPENSE SUMMARY 224 2010/11 2011/12 225 REVISED BUDGET 226 CARRY FORWARD TO NEXT YEAR $ 725,554 $ 725,554 227 228 TOTALS $ 725,554 $ 725,554 229 230 The City Manager is hereby authorized, without further approval of the City Council, to make 231 inter-departmental transfers of up to five percent of the amount hereinafter appropriated to any 232 department except that the City Manager shall not make any transfers prohibited by City 233 Procedure #F306 and/or #F306ADD.

234 2011-2012 BUDGET ORDINANCES - CONTINUED 235 236 GENERAL CAPITAL ASSET REPLACEMENT FUND 237 CASH RECEIPTS/REVENUES AND BUDGET FOR 2011-2012 238 239 BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE CITY OF DOVER, IN COUNCIL MET: 240 241 The amount hereinafter named aggregating Four Hundred Sixty Four Thousand One Hundred Forty Five 242 dollars ($464,145) or so much thereof as may be necessary are hereby appropriated from current 243 revenues and other funds for the use by several departments of the Municipal Government for the 244 fiscal year beginning July 1, 2011 and ending June 30, 2012: 245 246 CASH RECEIPTS 247 2010/11 2011/12 248 REVISED BUDGET 249 BEGINNING BALANCE $ 249,145 $ 256,645 250 INTEREST EARNINGS 7,500 7,500 251 TRANSFER FROM GENERAL FUND - 200,000 252 253 TOTALS $ 256,645 $ 464,145 254 255 EXPENSE SUMMARY 256 2010/11 2011/12 257 REVISED BUDGET 258 TRANSFER TO GOVERNMENTAL CAPITAL FUND $ 256,645 $ 464,145 259 TOTALS $ 256,645 $ 464,145 260 261 The City Manager is hereby authorized, without further approval of the City Council, to make 262 inter-departmental transfers of up to five percent of the amount hereinafter appropriated to any 263 department except that the City Manager shall not make any transfers prohibited by City 264 Procedure #F306 and/or #F306ADD.

265 2011-2012 BUDGET ORDINANCES - CONTINUED 266 267 MUNICIPAL STREET AID FUND 268 CASH RECEIPTS/REVENUES AND BUDGET FOR 2011-2012 269 270 BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE CITY OF DOVER, IN COUNCIL MET: 271 The amount hereinafter named aggregating Five Hundred Twenty Seven Thousand Fourteen 272 dollars ($527,014) or so much thereof as may be necessary are hereby appropriated from current 273 revenues and other funds for the use by several departments of the Municipal Government for the 274 fiscal year beginning July 1, 2011 and ending June 30, 2012: 275 276 CASH RECEIPTS 277 2010/11 2011/12 278 REVISED BUDGET 279 BEGINNING BALANCE $ - $ 100 280 STATE GRANT 526,814 526,814 281 INTEREST EARNED 100 100 282 283 TOTALS $ 526,914 $ 527,014 284 285 286 BUDGET SUMMARY 287 2010/11 2011/12 288 REVISED BUDGET 289 TRANSFER TO GENERAL FUND $ 526,814 $ 526,814 290 CURRENT YEAR BALANCE 100 200 291 292 TOTALS $ 526,914 $ 527,014 293 294 The City Manager is hereby authorized, without further approval of the City Council, to make 295 inter-departmental transfers of up to five percent of the amount hereinafter appropriated to any 296 department except that the City Manager shall not make any transfers prohibited by City 297 Procedure #F306 and/or #F306ADD.

298 2011-2012 BUDGET ORDINANCES - CONTINUED 299 300 WATER/WASTEWATER FUND 301 REVENUES AND BUDGET FOR 2011-2012 302 303 BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE CITY OF DOVER, IN COUNCIL MET: 304 The amount hereinafter named aggregating Sixteen Million Two Hundred Eighty Thousand Eighty Five 305 dollars ($16,280,085) or so much thereof as may be necessary are hereby appropriated from current 306 revenues and other funds for the use by several departments of the Municipal Government for the 307 fiscal year beginning July 1, 2011 and ending June 30, 2012: 308 309 2010/11 2011/12 310 BASE REVENUE REVISED BUDGET 311 PRIOR YEAR BALANCE - WATER $ 1,236,546 $ 2,385,027 312 PRIOR YEAR BALANCE - WASTEWATER 902,366 1,741,242 313 PRIOR YEAR BALANCE - KCSA (1,872,081) (1,757,484) 314 WATER FEES 4,800,000 4,603,400 315 WASTEWATER FEES 3,500,000 3,756,700 316 WASTEWATER ADJUSTMENT FEES 3,000,000 3,090,900 317 GROUNDWATER INFLOW ADJUSTMENT 1,350,000 1,386,900 318 WATER TANK SPACE LEASING 299,400 307,600 319 SEWER IMPACT FEES 323,000 323,000 320 WATER IMPACT FEES 357,000 357,000 321 INTEREST - WATER 8,886 10,600 322 INTEREST - WASTEWATER 10,914 17,200 323 MISCELLANEOUS SERVICE FEE 58,000 58,000 324 325 TOTALS $ 13,974,031 $ 16,280,085 326

327 2010/11 2011/12 328 DIRECT EXPENSES REVISED BUDGET 329 ENGINEERING & INSPECTION $ 540,099 $ 622,230 330 WATER CONSTRUCTION 400,439 440,088 331 WATER DEPARTMENT 374,920 382,655 332 WATER TREATMENT PLANT 1,475,704 1,543,114 333 WASTEWATER DEPARTMENT 945,296 959,735 334 KENT COUNTY TREATMENT CHARGE 4,235,403 4,235,400 335 DIRECT EXPENDITURE SUBTOTAL 7,971,861 8,183,222 336 337 OTHER EXPENSES 338 DEBT SERVICE - WATER 244,000 320,853 339 DEBT SERVICE - WASTEWATER 216,000 416,083 340 RETIREES HEALTH CARE 177,427 190,830 341 UNCOLLECTIBLES 71,000 5,000 342 PENSION UNFUNDED LIABILITY 372,000 228,400 343 INTRAFUND SERVICE FEES 1,117,897 1,228,596 344 INVENTORY/FIXED ASSET WRITEOFFS - 10,000 345 OTHER EXPENSES SUBTOTAL 2,198,324 2,399,762 346 347 TRANSFER TO 348 GENERAL FUND FROM WATER - 238,842 349 GENERAL FUND FROM WASTEWATER - 185,666 350 WATER IMP AND EXT 500,000 750,000 351 WASTEWATER IMP AND EXT 500,000 1,000,000 352 SEWER IMPACT FEE RESERVE 107,000 - 353 WATER IMPACT FEE RESERVE 113,000 36,147 354 TRANSFER TO CONTINGENCY WASTEWATER 18,000 8,000 355 CAPITAL ASSET RESERVE WATER 100,000 100,000 356 CAPITAL ASSET RESERVE WASTEWATER 100,000 300,000 357 TRANSFER TO SUBTOTAL 1,438,000 2,618,655 358 359 CURRENT YEAR BALANCES 360 CURRENT YEAR BALANCE WATER 2,383,557 2,738,400 361 CURRENT YEAR BALANCE WASTEWATER 1,739,773 1,855,130 362 CURRENT YEAR BALANCE KCSA (1,757,484) (1,515,084) 363 CURRENT YEAR BALANCE SUBTOTALS 2,365,846 3,078,446 364 365 TOTALS $ 13,974,031 $ 16,280,085 366 367 The City Manager is hereby authorized, without further approval of the City Council, to make 368 inter-departmental transfers of up to five percent of the amount hereinafter appropriated to any 369 department except that the City Manager shall not make any transfers prohibited by City

370 2011-2012 BUDGET ORDINANCES - CONTINUED 371 372 WATER/WASTEWATER IMPROVEMENT & EXTENSION FUND 373 CASH RECEIPTS/REVENUES AND BUDGET FOR 2011-2012 374 375 BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE CITY OF DOVER, IN COUNCIL MET: 376 The amount hereinafter named aggregating Five Million Two Hundred Fifty Six Thousand One Hundred Eighty Eight 377 dollars ($5,256,188) or so much thereof as may be necessary are hereby appropriated from current revenues 378 and other funds for the use by several departments of the Municipal Government for the fiscal year beginning 379 July 1, 2011 and ending June 30, 2012: 380 381 CASH RECEIPTS 382 2010/11 2011/12 383 REVISED BUDGET 384 PRIOR YEAR BALANCE - WATER $ 1,840,910 $ 1,139,872 385 PRIOR YEAR BALANCE - WASTEWATER (45,575) 303,476 386 PRIOR YEAR BOND PROCEEDS WATER 2,404,017 - 387 PRIOR YEAR BOND PROCEEDS - WASTEWATER 3,797,956 - 388 STATE LOAN FUND - WASTEWATER 765,060 1,800,000 389 TRANS FR WATER/WASTEWATER FOR WATER 500,000 750,000 390 TRANS FR WATER/WASTEWATER FOR WASTEWATER 500,000 1,000,000 391 TRANSFER FROM IMPACT FEE RESERVE 516,781 262,840 392 FEDERAL/STATE GRANTS 28,877 - 393 394 TOTALS $ 10,308,026 $ 5,256,188 395 396 CASH RECEIPTS/REVENUES AND BUDGET FOR 2011-2012 397 EXPENSE SUMMARY 398 2010/11 2011/12 399 REVISED BUDGET 400 WATER $ 3,605,055 $ 766,240 401 WASTEWATER 5,259,623 3,404,900 402 WATER TREATMENT PLANT - 22,900 403 WATER CONSTRUCTION - 30,100 404 CURRENT YEAR BALANCE - WATER 1,139,872 1,070,632 405 CURRENT YEAR BALANCE - WASTEWATER 303,476 (38,584) 406 407 TOTALS $ 10,308,026 $ 5,256,188 408 409 The City Manager is hereby authorized, without further approval of the City Council, to make 410 inter-departmental transfers of up to five percent of the amount hereinafter appropriated to any 411 department except that the City Manager shall not make any transfers prohibited by City 412 Procedure #F306 and/or #F306ADD.

413 2011-2012 BUDGET ORDINANCES - CONTINUED 414 415 WATER/WASTEWATER CAPITAL ASSET RESERVE 416 CASH RECEIPTS/REVENUES AND BUDGET FOR 2011-2012 417 418 BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE CITY OF DOVER, IN COUNCIL MET: 419 The amount hereinafter named aggregating Nine Hundred Twenty Five Thousand Six Hundred Seventy 420 dollars ($925,670) or so much thereof as may be necessary are hereby appropriated from current revenues 421 and other funds for the use by several departments of the Municipal Government for the fiscal year 422 beginning July 1, 2011 and ending June 30, 2012: 423 424 CASH RECEIPTS 425 2010/11 2011/12 426 REVISED BUDGET 427 BEGINNING BALANCE - WATER $ 211,713 $ 336,064 428 BEGINNING BALANCE - WASTEWATER 66,476 168,470 429 INTEREST EARNINGS - WATER 6,351 10,082 430 INTEREST EARNINGS - WASTEWATER 1,994 5,054 431 TRANSFER FROM WATER 100,000 100,000 432 TRANSFER FROM WASTEWATER 100,000 300,000 433 TRANSFER FROM WATER/WASTEWATER CONTINGENCY 18,000 6,000 434 435 TOTALS $ 504,534 $ 925,670 436 EXPENSE SUMMARY 437 2010/11 2011/12 438 REVISED BUDGET 439 CARRY FORWARD TO NEXT YEAR WATER $ 336,064 $ 452,146 440 CARRY FORWARD TO NEXT YEAR WASTEWATER 168,470 473,524 441 442 TOTALS $ 504,534 $ 925,670 443 444 The City Manager is hereby authorized, without further approval of the City Council, to make 445 inter-departmental transfers of up to five percent of the amount hereinafter appropriated to any 446 department except that the City Manager shall not make any transfers prohibited by City 447 Procedure #F306 and/or #F306ADD.

448 2011-2012 BUDGET ORDINANCES - CONTINUED 449 450 WATER/WASTEWATER CONTINGENCY RESERVE 451 CASH RECEIPTS/REVENUES AND BUDGET FOR 2011-2012 452 453 BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE CITY OF DOVER, IN COUNCIL MET: 454 The amount hereinafter named aggregating Two Hundred Eighty Two Thousand Eight Hundred Forty Five 455 dollars ($282,845) or so much thereof as may be necessary are hereby appropriated from current revenues 456 and other funds for the use by several departments of the Municipal Government for the fiscal year 457 beginning July 1, 2011 and ending June 30, 2012: 458 459 CASH RECEIPTS 460 2010/11 2011/12 461 REVISED BUDGET 462 PRIOR YEAR BALANCE $ 259,067 $ 266,839 463 INTEREST EARNINGS 7,772 8,006 464 TRANSFER FROM WATER/WASTEWATER 18,000 8,000 465 466 TOTALS $ 284,839 $ 282,845 467 468 BUDGET SUMMARY 469 2010/11 2011/12 470 REVISED BUDGET 471 TRANSFER TO CAPITAL ASSET RESERVE $ 18,000 $ 6,000 472 CURRENT YEAR BALANCE 266,839 276,845 473 474 TOTALS $ 284,839 $ 282,845 475 476 The City Manager is hereby authorized, without further approval of the City Council, to make 477 inter-departmental transfers of up to five percent of the amount hereinafter appropriated to any 478 department except that the City Manager shall not make any transfers prohibited by City 479 Procedure #F306 and/or #F306ADD.

480 2011-2012 BUDGET ORDINANCES - CONTINUED 481 482 ELECTRIC REVENUE FUND 483 REVENUES AND BUDGET FOR 2011-2012 484 485 BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE CITY OF DOVER, IN COUNCIL MET: 486 The amount hereinafter named aggregating One Hundred Six Million Two Hundred Seventy Four Thousand 487 Seven Hundred Six dollars ($106,274,706) or so much thereof as may be necessary are hereby 488 appropriated from current revenues and other funds for the use by several departments of the 489 Municipal Government for the fiscal year beginning July 1, 2011 and ending June 30, 2012: 490 491 2010/11 2011/12 492 BASE REVENUE REVISED BUDGET 493 BUSINESS LICENSES $ 13,537,864 $ 11,867,003 494 DIRECT SALES TO CUSTOMER 97,917,206 95,675,500 495 PURCHASE POWER ADJUSTMENT (2,293,603) (6,012,000) 496 UTILITY TAX 1,965,000 1,966,100 497 GREEN ENERGY 128,600 129,000 498 MISCELLANEOUS REVENUE 891,200 919,000 499 RENT REVENUE 186,816 225,000 500 TRANSFER FROM RATE STABILIZATION - 1,000,000 501 INTRAFUND SERVICE RECEIPTS WATER/WASTEWATER 173,317 240,203 502 INTEREST EARNINGS 965,500 264,900 503 504 TOTALS $ 113,471,900 $ 106,274,706 505

506 ELECTRIC REVENUE FUND - CONTINUED 507 REVENUES AND BUDGET FOR 2011-2012 508 509 2010/11 2011/12 510 EXPENSES REVISED BUDGET 511 POWER SUPPLY $ 47,634,363 $ 42,047,430 512 POWER SUPPLY MANAGEMENT 2,321,562 1,170,000 513 PJM CHARGES - LOAD 13,363,432 15,043,396 514 CAPACITY CHARGES 12,302,392 8,506,512 515 CONTRACTUAL SERVICES - 115,000 516 SUB-TOTAL POWER SUPPLY 75,621,749 66,882,338 517 PLANT OPERATIONS 6,155,046 5,964,817 518 GENERATIONS FUELS 3,244,977 664,641 519 PJM CREDITS (5,553,404) (1,285,675) 520 CAPACITY CREDITS (11,419,723) (7,388,283) 521 GENERATION SUBTOTAL (7,573,104) (2,044,500) 522 POWER SUPPLY & GENERATION SUBTOTAL 68,048,645 64,837,838 523 524 DIRECT EXPENDITURES 525 TRANSMISSION/DISTRIBUTION 3,035,144 3,162,026 526 ELECTRICAL ENGINEERING 1,745,105 1,177,060 527 ADMINISTRATION 974,959 602,715 528 METER READING 205,915 215,208 529 SYSTEMS OPERATIONS 492,493 473,895 530 UTILITY TAX 1,965,000 1,966,100 531 DIRECT EXPENDITURE SUBTOTALS 8,418,616 7,597,004 532 533 OTHER EXPENSES: 534 ALLOW FOR UNCOLLECTIBLES 310,000 150,000 535 RETIREES HEALTH CARE 639,110 646,510 536 TRANSFER TO PENSION UNFUNDED LIABILITY 833,000 1,110,500 537 OPEB 1,200,000 1,115,300 538 GREEN ENERGY PAYMENT TO DEMEC 128,600 129,000 539 INTRAFUND SERVICE FEES 3,293,025 3,370,778 540 INTEREST ON DEPOSITS 54,500 54,500 541 INVENTORY WRITE OFFS 175,000 175,000 542 DEBT SERVICE 3,589,904 3,336,800 543 OTHER EXPENSES SUBTOTAL 10,223,139 10,088,388 544 545 TRANSFER TO 546 IMPROVEMENT & EXTENSION 3,500,000 3,500,000 547 GENERAL FUND 8,856,000 7,876,288 548 TRANSFER TO DEPRECIATION RESERVE 1,250,000 - 549 RATE STABILIZATION RESERVE 1,300,000 - 550 TRANSFER TO SUBTOTAL 14,906,000 11,376,288 551 552 CURRENT YEAR BALANCE 11,875,500 12,375,188 553 554 TOTALS $ 113,471,900 $ 106,274,706 555 556 The City Manager is hereby authorized, without further approval of the City Council, to make 557 inter-departmental transfers of up to five percent of the amount hereinafter appropriated to any 558 department except that the City Manager shall not make any transfers prohibited by City 559 Procedure #F306 and/or #F306ADD.

560 2011-2012 BUDGET ORDINANCES - CONTINUED 561 562 ELECTRIC UTILITY IMPROVEMENT AND EXTENSION FUND 563 CASH RECEIPTS/REVENUES AND BUDGET FOR 2011-2012 564 565 BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE CITY OF DOVER, IN COUNCIL MET: 566 The amount hereinafter named aggregating Six Million Four Hundred Seventy Thousand Two Hundred Twenty 567 Six dollars ($6,470,226) or so much thereof as may be necessary are hereby appropriated from current 568 revenues and other funds for the use by several departments of the Municipal Government for the fiscal 569 year beginning July 1, 2011 and ending June 30, 2012: 570 571 CASH RECEIPTS 572 2010/11 2011/12 573 REVISED BUDGET 574 PRIOR YEAR BALANCE BOND $ 3,429,624 $ 2,561,096 575 INTEREST EARNINGS 415,585 - 576 INTEREST TRUSTEE 40,700 38,400 577 RECEIPT FROM DEPRECIATION RESERVE - 300,000 578 STATE REIMBURSEMENT FOR GOVS AVE 254,757 - 579 STATE REIMBURSEMENT FOR WYOMING MILL RD 91,000 - 580 FEDERAL GRANTS 151,523 - 581 INSURANCE CLAIM PROCEEDS 280,000 - 582 TRANSFER FROM INSURANCE STABILIZATION - 70,730 583 TRANSFER FROM ELECTRIC 3,500,000 3,500,000 584 585 TOTALS $ 8,163,189 $ 6,470,226 586 587 EXPENSE SUMMARY 588 2010/11 2011/12 589 REVISED BUDGET 590 ELECTRIC GENERATION $ 2,106,427 $ 1,810,410 591 TRANSMISSION AND DISTRIBUTION 739,000 648,337 592 ELECTRICAL ENGINEERING 1,756,666 1,790,716 593 METER READING - 20,000 594 TRANSFER TO DEPRECIATION RESERVE 1,000,000 595 CURRENT YEAR BALANCE 2,561,096 2,200,763 596 597 TOTALS $ 8,163,189 $ 6,470,226 598 599 The City Manager is hereby authorized, without further approval of the City Council, to make inter-departmental 600 transfers of up to five percent of the amount hereinafter appropriated to any department except that the City 601 Manager shall not make any transfers prohibited by City Procedure #F306 and/or #F306ADD.

602 2011-2012 BUDGET ORDINANCES - CONTINUED 603 604 ELECTRIC UTILITY CONTINGENCY RESERVE 605 CASH RECEIPTS/REVENUES AND BUDGET FOR 2011-2012 606 607 BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE CITY OF DOVER, IN COUNCIL MET: 608 The amount hereinafter named aggregating One Million One Hundred Ten Thousand Four Hundred Ninety Six 609 ($1,110,496) or so much thereof as may be necessary are hereby appropriated from current revenues 610 and other funds for the use by several departments of the Municipal Government for the fiscal year 611 beginning July 1, 2011 and ending June 30, 2012: 612 613 CASH RECEIPTS 614 2010/11 2011/12 615 REVISED BUDGET 616 BEGINNING BALANCE $ 1,039,766 $ 1,039,766 617 TRANSFER FROM INSURANCE STABILIZATION - 70,730 618 619 TOTALS $ 1,039,766 $ 1,110,496 620 621 EXPENSE SUMMARY 622 2010/11 2011/12 623 REVISED BUDGET 624 CARRY FORWARD TO NEXT YEAR $ 1,039,766 $ 1,110,496 625 626 TOTALS $ 1,039,766 $ 1,110,496 627 628 The City Manager is hereby authorized, without further approval of the City Council, to make inter- 629 departmental transfers of up to five percent of the amount hereinafter appropriated to any department 630 except that the City Manager shall not make any transfers prohibited by City Procedure #F306 and/or #F306ADD.

631 2011-2012 BUDGET ORDINANCES - CONTINUED 632 633 ELECTRIC UTILITY DEPRECIATION RESERVE 634 SOURCES AND USE OF FUNDS FOR 2011-2012 635 636 BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE CITY OF DOVER, IN COUNCIL MET: 637 The amount hereinafter named aggregating Ten Million Eight Hundred Eighteen Thousand 638 One Hundred Fifty Five dollars ($10,818,155) or so much thereof as may be necessary are hereby 639 appropriated from current revenues and other funds for the use by several departments of the 640 Municipal Government for the fiscal year beginning July 1, 2011 and ending June 30, 2012: 641 642 CASH RECEIPTS 643 2010/11 2011/12 644 REVISED BUDGET 645 PRIOR YEAR BALANCE $ 8,021,155 $ 10,511,755 646 RECEIPT FROM ELECTRIC REVENUE FUND 1,250,000 - 647 RECEIPT FROM ELECTRIC I&E FUND 1,000,000 - 648 INTEREST EARNINGS 240,600 306,400 649 650 TOTALS $ 10,511,755 $ 10,818,155 651 BUDGET SUMMARY 652 2010/11 2011/12 653 REVISED BUDGET 654 TRANSFER TO IMPROVEMENT AND EXTENSION $ - $ 300,000 655 TRANSFER TO FUTURE CAPACITY - 500,000 656 CURRENT YEAR BALANCE 10,511,755 10,018,155 657 658 TOTALS $ 10,511,755 $ 10,818,155 659 660 The City Manager is hereby authorized, without further approval of the City Council, to make inter- 661 departmental transfers of up to five percent of the amount hereinafter appropriated to any department 662 except that the City Manager shall not make any transfers prohibited by City Procedure #F306 and/or #F306ADD.

663 2011-2012 BUDGET ORDINANCES - CONTINUED 664 665 ELECTRIC UTILITY FUTURE CAPACITY RESERVE 666 SOURCES AND USE OF FUNDS FOR 2011-2012 667 668 BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE CITY OF DOVER, IN COUNCIL MET: 669 The amount hereinafter named aggregating Ten Million Seventy Three Thousand Four Hundred Twenty Eight 670 dollars ($10,073,428) or so much thereof as may be necessary are hereby appropriated from current revenues 671 and other funds for the use by several departments of the Municipal Government for the fiscal year 672 beginning July 1, 2011 and ending June 30, 2012: 673 674 CASH RECEIPTS 675 2010/11 2011/12 676 REVISED BUDGET 677 PRIOR YEAR BALANCE $ 9,023,928 $ 9,294,628 678 RECEIPT FROM DEPRECIATION RESERVE - 500,000 679 INTEREST EARNINGS 270,700 278,800 680 681 TOTALS $ 9,294,628 $ 10,073,428 682 BUDGET SUMMARY 683 2010/11 2011/12 684 REVISED BUDGET 685 CURRENT YEAR BALANCE $ 9,294,628 $ 10,073,428 686 687 TOTALS $ 9,294,628 $ 10,073,428 688 689 The City Manager is hereby authorized, without further approval of the City Council, to make inter- 690 departmental transfers of up to five percent of the amount hereinafter appropriated to any department 691 except that the City Manager shall not make any transfers prohibited by City Procedure #F306 and/or #F306ADD.

692 2011-2012 BUDGET ORDINANCES - CONTINUED 693 694 ELECTRIC UTILITY INSURANCE STABLIZATION RESERVE 695 SOURCES AND USE OF FUNDS FOR 2011-2012 696 697 BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE CITY OF DOVER, IN COUNCIL MET: 698 The amount hereinafter named aggregating Four Hundred Twenty Thousand Seven Hundred Thirty dollars 699 ($420,730) or so much thereof as may be necessary are hereby appropriated from current revenues 700 and other funds for the use by several departments of the Municipal Government for the fiscal year 701 beginning July 1, 2011 and ending June 30, 2012: 702 703 CASH RECEIPTS 704 2010/11 2011/12 705 REVISED BUDGET 706 PRIOR YEAR BALANCE $ 396,530 $ 408,430 707 INTEREST EARNINGS 11,900 12,300 708 709 TOTALS $ 408,430 $ 420,730 710 711 BUDGET SUMMARY 712 2010/11 2011/12 713 REVISED BUDGET 714 TRANSFER TO ELECTRIC IMPROVEMENT & EXTENSION $ - $ 70,730 715 CURRENT YEAR BALANCE 408,430 350,000 716 717 TOTALS $ 408,430 $ 420,730 718 719 The City Manager is hereby authorized, without further approval of the City Council, to make inter- 720 departmental transfers of up to five percent of the amount hereinafter appropriated to any department 721 except that the City Manager shall not make any transfers prohibited by City Procedure #F306 and/or #F306ADD.

722 2011-2012 BUDGET ORDINANCES - CONTINUED 723 724 ELECTRIC UTILITY RATE STABLIZATION RESERVE 725 SOURCES AND USE OF FUNDS FOR 2011-2012 726 727 BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE CITY OF DOVER, IN COUNCIL MET: 728 The amount hereinafter named aggregating Six Million Four Hundred Six Thousand Four Hundred Nineteen 729 dollars ($6,406,419) or so much thereof as may be necessary are hereby appropriated from current revenues 730 and other funds for the use by several departments of the Municipal Government for the fiscal year 731 beginning July 1, 2011 and ending June 30, 2012: 732 733 CASH RECEIPTS 734 2010/11 2011/12 735 REVISED BUDGET 736 PRIOR YEAR BALANCE $ 4,776,519 $ 6,219,819 737 RECEIPT FROM ELECTRIC REVENUE FUND 1,300,000 - 738 INTEREST EARNINGS 143,300 186,600 739 740 TOTALS $ 6,219,819 $ 6,406,419 741 742 BUDGET SUMMARY 743 2010/11 2011/12 744 REVISED BUDGET 745 TRANSFER TO ELECTRIC FUND $ - $ 1,000,000 746 747 CURRENT YEAR BALANCE 6,219,819 5,406,419 748 749 TOTALS $ 6,219,819 $ 6,406,419 750 751 The City Manager is hereby authorized, without further approval of the City Council, to make inter- 752 departmental transfers of up to five percent of the amount hereinafter appropriated to any department 753 except that the City Manager shall not make any transfers prohibited by City Procedure #F306 and/or #F306ADD.

754 2011-2012 BUDGET ORDINANCES - CONTINUED 755 756 WORKERS COMPENSATION FUND 757 CASH RECEIPTS/REVENUES AND BUDGET FOR 2011-2012 758 759 BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE CITY OF DOVER, IN COUNCIL MET: 760 The amount hereinafter named aggregating One Million Seven Hundred Thirteen Thousand Five Hundred Five 761 dollars ($1,713,505) or so much thereof as may be necessary are hereby appropriated from current revenues 762 and other funds for the use by several departments of the Municipal Government for the fiscal year 763 beginning July 1, 2011 and ending June 30, 2012: 764 765 OPERATING REVENUES 766 2010/11 2011/12 767 REVISED BUDGET 768 PRIOR YEAR BALANCE $ 1,566,938 $ 1,663,168 769 INTEREST INCOME 35,000 45,737 770 PREMIUM FROM CITY 670,530 - 771 MISCELLANEOUS REVENUE 4,600 4,600 772 773 TOTALS $ 2,277,068 $ 1,713,505 774 OPERATING EXPENSES 775 2010/11 2011/12 776 REVISED BUDGET 777 PROGRAM EXPENSES/SUPPLIES - CLAIMS $ 450,000 $ 450,000 778 INSURANCE 93,400 82,150 779 BANK FEES 1,500 1,500 780 STATE OF DEL - SELF INSURANCE TAX 37,000 37,000 781 CONTRACTUAL SERVICES 32,000 32,000 782 783 TOTAL EXPENSES 613,900 602,650 784 785 CURRENT YEAR BALANCE 1,663,168 1,110,855 786 787 TOTALS $ 2,277,068 $ 1,713,505 788 789 The City Manager is hereby authorized, without further approval of the City Council, to make inter- 790 departmental transfers of up to five percent of the amount hereinafter appropriated to any department 791 except that the City Manager shall not make any transfers prohibited by City Procedure #F306 and/or #F306ADD.

792 2011-2012 BUDGET ORDINANCES - CONTINUED 793 794 COMMUNITY TRANSPORTATION IMPROVEMENT FUND 795 CASH RECEIPTS/REVENUES AND BUDGET FOR 2011-2012 796 797 BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE CITY OF DOVER, IN COUNCIL MET: 798 The amount hereinafter named aggregating Two Million Five Hundred Sixty Five Thousand Four Hundred Fifty 799 One dollars ($2,565,451) or so much thereof as may be necessary are hereby appropriated from current revenues 800 and other funds for the use by several departments of the Municipal Government for the fiscal year 801 beginning July 1, 2011 and ending June 30, 2012: 802 803 OPERATING REVENUES 804 2010/11 2011/12 805 REVISED BUDGET 806 PRIOR YEAR BALANCE $ 309,851 $ 312,651 807 GRANTS REVENUE (Lincoln Park/Clarence St) 1,000,000 1,900,000 808 TRANSFER FROM GENERAL 300,000 350,000 809 INTEREST INCOME 2,800 2,800 810 811 TOTALS $ 1,612,651 $ 2,565,451 812 813 OPERATING EXPENSES 814 2010/11 2011/12 815 REVISED BUDGET 816 PROGRAM EXPENSES $ 1,300,000 $ 1,300,000 817 LINCOLN PARK/CLARENCE STREET GRANT EXP. - 900,000 818 819 CURRENT YEAR BALANCE 312,651 365,451 820 821 TOTALS $ 1,612,651 $ 2,565,451 822 823 The City Manager is hereby authorized, without further approval of the City Council, to make inter- 824 departmental transfers of up to five percent of the amount hereinafter appropriated to any department 825 except that the City Manager shall not make any transfers prohibited by City Procedure #F306 and/or #F306ADD.

826 2011-2012 BUDGET ORDINANCES - CONTINUED 827 828 PARKLAND/RECREATION RESERVE 829 CASH RECEIPTS/REVENUES AND BUDGET FOR 2011-2012 830 831 BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE CITY OF DOVER, IN COUNCIL MET: 832 The amount hereinafter named aggregating One Hundred Ninety Seven Thousand Two Hundred Seventy Two 833 dollars ($197,272) or so much thereof as may be necessary are hereby appropriated from current revenues 834 and other funds for the use by several departments of the Municipal Government for the fiscal 835 year beginning July 1, 2011 and ending June 30, 2012: 836 837 OPERATING REVENUES 838 2010/11 2011/12 839 REVISED BUDGET 840 PRIOR YEAR BALANCE $ 221,594 $ 191,522 841 INTEREST INCOME 6,800 5,750 842 843 TOTALS $ 228,394 $ 197,272 844 845 OPERATING EXPENSES 846 2010/11 2011/12 847 REVISED BUDGET 848 TRANSFER TO GENERAL CAPITAL PROJECTS FUND $ 36,872 $ - 849 850 CURRENT YEAR BALANCE 191,522 197,272 851 852 TOTALS $ 228,394 $ 197,272 853 854 The City Manager is hereby authorized, without further approval of the City Council, to make inter- 855 departmental transfers of up to five percent of the amount hereinafter appropriated to any department 856 except that the City Manager shall not make any transfers prohibited by City Procedure #F306 and/or #F306ADD.

857 2011-2012 BUDGET ORDINANCES - CONTINUED 858 859 LIBRARY RESERVE 860 CASH RECEIPTS/REVENUES AND BUDGET FOR 2011-2012 861 862 BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE CITY OF DOVER, IN COUNCIL MET: 863 The amount hereinafter named aggregating One Million Three Hundred Twenty Seven Thousand Four Hundred Sevent 864 Nine dollars ($1,327,479) or so much thereof as may be necessary are hereby appropriated from current revenues 865 and other funds for the use by several departments of the Municipal Government for the fiscal year 866 beginning July 1, 2011 and ending June 30, 2012: 867 868 OPERATING REVENUES 869 2010/11 2011/12 870 REVISED BUDGET 871 PRIOR YEAR BALANCE $ 3,471,411 $ 1,217,579 872 INTEREST INCOME 109,900 109,900 873 874 TOTALS $ 3,581,311 $ 1,327,479 875 876 OPERATING EXPENSES 877 2010/11 2011/12 878 REVISED BUDGET 879 TRANSFER TO CAPITAL PROJECT FUND $ 2,363,732 $ 1,200,938 880 881 CURRENT YEAR BALANCE 1,217,579 126,541 882 883 TOTALS $ 3,581,311 $ 1,327,479 884 885 The City Manager is hereby authorized, without further approval of the City Council, to make inter- 886 departmental transfers of up to five percent of the amount hereinafter appropriated to any department 887 except that the City Manager shall not make any transfers prohibited by City Procedure #F306 and/or #F306ADD.

888 2011-2012 BUDGET ORDINANCES - CONTINUED 889 890 LIBRARY GRANT FUND 891 CASH RECEIPTS/REVENUES AND BUDGET FOR 2011-2012 892 893 BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE CITY OF DOVER, IN COUNCIL MET: 894 The amount hereinafter named aggregating Two Hundred Seventy Eight Thousand Eight Hundred Eighty Seven 895 dollars ($278,887) or so much thereof as may be necessary are hereby appropriated from current revenues 896 and other funds for the use by several departments of the Municipal Government for the fiscal year 897 beginning July 1, 2011 and ending June 30, 2012: 898 899 OPERATING REVENUES 900 2010/11 2011/12 901 REVISED BUDGET 902 PRIOR YEAR BALANCE $ 16,336 $ 16,336 903 STATE GRANT 247,801 259,801 904 FEDERAL GRANT - 2,750 905 906 TOTALS $ 264,137 $ 278,887 907 908 OPERATING EXPENSES 909 2010/11 2011/12 910 REVISED BUDGET 911 PROGRAM EXPENSES/SUPPLIES $ 41,935 $ 41,935 912 BOOKS 107,216 119,216 913 AUDIO VISUAL SUPPLIES 55,000 55,000 914 TRAINING/CONF/FOOD/TRAV 5,000 5,000 915 CONTRACTUAL SERVICES 18,650 18,650 916 COMPUTER HARDWARE 20,000 20,000 917 SUBTOTAL EXPENSES STATE GRANTS 247,801 259,801 918 919 FEDERAL GRANTS 920 PROGRAM EXPENSES/SUPPLIES - 2,750 921 SUBTOTAL EXPENSES FEDERAL GRANTS - 2,750 922 923 CURRENT YEAR BALANCE 16,336 16,336 924 925 TOTALS $ 264,137 $ 278,887 926 927 The City Manager is hereby authorized, without further approval of the City Council, to make inter- 928 departmental transfers of up to five percent of the amount hereinafter appropriated to any department 929 except that the City Manager shall not make any transfers prohibited by City Procedure #F306 and/or #F306ADD.

930 2011-2012 BUDGET ORDINANCES - CONTINUED 931 932 BUSINESS IMPROVEMENT DISTRICT 933 ASSESSMENT (TAX) RATES FOR FISCAL YEAR 2011-2012 934 935 BID TAX REVENUE AND EXPENSES CHARGED AGAINST THIS REVENUE 936 ADMINISTERED THROUGH CITY OF DOVER ECONOMIC DEVELOPMENT 937 938 BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE CITY OF DOVER, IN COUNCIL MET: 939 The amount hereinafter named aggregating Fifty One Thousand Eight Hundred Twenty One dollars 940 ($51,821) or so much thereof as may be necessary are hereby appropriated from current revenues 941 and other funds for the use by the City of Dover Economic Development for the fiscal year beginning 942 July 1, 2011 and ending June 30, 2012: 943 944 945 REVENUE PROPOSED 946 TAX REVENUE $ 51,821 947 948 EXPENSES 949 PERSONNEL & ADMINISTRATION $ 51,821 950 951 BUSINESS IMPROVEMENT DISTRICT - TAX CALCULATION SPREADSHEET 952 JULY 1, 2011 to JUNE 30, 2012 953 954 ZONE 1 ZONE 2 ZONE 3 TOTAL 955 AGGREGATE ASSESEMENTS $ 41,494,900 $ 58,427,900 $ 32,830,900 $ 132,753,700 956 ASSESSMENT TAX RATE PER $100 0.0634 0.0349 0.0156 - 957 REVENUE RAISED $ 26,308 $ 20,391 $ 5,122 $ 51,821 958 % REVENUE RAISED 51% 39% 10% 100% 959 NUMBER OF PARCELS 117 105 42 264 960 AVERAGE ASSESSMENT $ 225 $ 194 $ 122 $ 541 961 962 NOTE: This figures were estimated per the 2010 reassessed values. The revenue percentages by Zone 963 are per the City of Dover Code Appendix D-Article III, Section 9 (e). 964 965 JULY 1, 2010 to JUNE 30, 2011 966 967 ZONE 1 ZONE 2 ZONE 3 TOTAL 968 AGGREGATE ASSESEMENTS $ 40,130,000 $ 61,079,800 $ 34,517,500 $ 135,727,300 969 ASSESSMENT TAX RATE PER $100 0.0634 0.0349 0.0156 - 970 REVENUE RAISED $ 25,442 $ 21,317 $ 5,385 $ 52,144 971 % REVENUE RAISED 49% 41% 10% 100% 972 NUMBER OF PARCELS 116 105 43 264 973 AVERAGE ASSESSMENT $ 219 $ 203 $ 125 $ 547 974 975 NOTE: This figures were estimated per the 2010 reassessed values. The revenue percentages by Zone 976 are per the City of Dover Code Appendix D-Article III, Section 9 (e). 977 978 ADOPTED: JUNE 27, 2011 979 980 Actions History: 981 June 27, 2011 - Final Reading - Council 982 June 13, 2011 - First Reading - Council