Attachment

EXHIBIT #1 2009 Budget Hearings Special Council Meeting of 05/19/2009 Fiscal Year 2009­2010 EXHIBIT #1 Draft Budget Presentation May 19, 2009 2009 Budget Hearings Special Council Meeting of 05/19/2009

Fiscal 2009-2010 Budget Estimates total operating expenditures of $157.3 million (excludes intrafund transfers & current year balances). A decrease of .5 % over last year’s budget. 2

Dover Family of Funds WATER/WASTEWATER ELECTRIC FUNDS GENERAL FUNDS FUNDS OPERATING FUND OPERATING FUND OPERATING FUND Contingency Contingency Contingency For a “rainy day” For a “rainy day” emergency For a “rainy day” emergency emergency Electric I & E Fund Governmental Capital Water/Wastewater Financing of system expansion Projects Fund I & E Fund and improvement Financing of system expansion Replacement and expansion (i.e., infrastructure, buildings, etc.) and improvement Depreciation Reserve Replenishment of assets Capital Assets Reserve Replacement and expansion (i.e., infrastructure, buildings, etc.) Future Capacity Financing for system capacity expansion Insurance Stabilization Funding of the insurance deductibles Rate Stabilization Funding to offset cost of power cost adjustment 3

This Budget Accomplishes... – Sufficient revenues to pay for expenses. – Adequate fund balances. – Maintenance and improvements to our infrastructure. – Core customer services to citizens. 5

Fiscal 2009­2010 Budget The budget also reflects Council’s strategic priority of customer satisfaction. − Library project continues − Water Quality Improvements − Inflow/Infiltration Abatement − Electric Infrastructure Improvements − No tax increases − No electric rate increase 6

How Do We Accomplish This? − Bargaining unit staff to take 12 days (8 hours per month) of vacation without pay. − Non-bargaining staff not receiving pay increases. − Removed most vehicular and equipment purchases. − Maintain tax rate at $.33 on assessed values. − No wastewater rate increases. − No electric rate increase - transferred $3 million from Rate Stabilization Fund. − Deferred 3 positions. − Reduced and deferred most General Fund CIP projects and vehicles. − Removed all non-essential travel and projects. − Continued hiring freeze. − Deferred OPEB funding. 7

General Fund 8

Fiscal Year 2009-2010 Revenue $35,428,722 Expense 32,452,006 Balance Carry Forward: $ 2,976,716 (meets 8% requirement) REVENUE INCLUDES: Prior Year Balance $2,816,763 Property Tax 10,185,246 Business Licenses 1,430,000 Permits & Other Licenses 904,000 Trash Fees 1,260,000 Court of Chancery Fees 745,000 Appropriation –Water/Wastewater Fund 548,020 Appropriation‐Electric Fund 6,758,100 Water Intrafund Service Fees 995,508 Electric Intrafund Service Fees 3,496,400 9

Total General Fund Revenues 10

General Fund Expenses Fiscal Year 2009-2010 − Regional Library - $8.9 million for Fiscal 2010 (reserves/grants). − 3.5% increase for IUE bargaining unit. − Health care increase of 6.0%. − Tax re-assessment continues - $381,500. 11

General Fund Fiscal Year 2009-2010 Where does the money go? − 54% of the General Fund budget is for personnel services. − 23% of the budget is spent on Capital projects. −The remaining 23% is spent for materials, supplies, administrative and other items. 12

General Fund Fiscal Year 2009-2010 Top Revenue Streams Property Tax $10,185,246 Electric Enterprise Fund Transfer 6,758,100 Intrafund Service Receipts Electric 3,496,400 Business Licenses and Permits 2,334,000 Transfer Tax 1,400,000 Trash Fees 1,260,000 Intrafund Service Receipts Water/Wastewater 1,063,098 13

General Fund Fiscal Year 2009-2010 Top Expenses by Department Police $ 12,196,679 Sanitation 2,200,971 Library 1,153,787 Grounds 1,120,535 Facilities Management 1,043,713 Customer Services 896,019 Information Technology 888,782 Streets 858,690 Finance 787,807 Central Services 779,433 14

General Fund Fiscal Year 2009-2010 Capital Investment Projects* Name Amount Fund Library $8,900,000 Library Reserve/Grants General Fund/Community Street & Alley Program $1,350,000 Transportation Fund Annual Contributions to $292,210 General Fund Robbins Hose *Due to revenue shortfalls there are no other CIP projects. 15

Water/Wastewater Fund 16

Fiscal Year 2009-2010 Revenue $13,247,604 Expense 11,189,157 Water Carry Forward: $1,121,255 Wastewater Carry Forward: $ 837,038 KCSA Carry Forward 100,154 * Fund balance requirement met in aggregate. Revenue Includes − No changes in Wastewater rates or KCSA rates − Water rate reflects 10% increase to rate − Revenue estimates based on 0% growth 17

Water/Wastewater Fund Revenue Where does the money go? − 14 % for personnel services − 48% for capital projects − Remaining 38% for materials/supplies/administrative and other expenses − Biggest single expense - Kent County treatment charge 18

Water/Wastewater Fund Water Revenue 19

Water/Wastewater Fund Top Revenue Sources Water Fees $4,499,000 Wastewater Adjustment Fees 3,435,390 Wastewater Fees 3,045,460 Sewer Impact Fees 475,000 Water Tank Space Leasing 293,669 Top Expenses Kent County Treatment Charge $3,435,430 Water Treatment Plant 1,518,474 Intrafund Service Fees 1,277,394 Wastewater Department 988,455 Engineering & Inspections 701,787 Debt Service - Water 468,013 20

Water/Wastewater Fund Top Capital Investments Projects Name Amount Fund US Rt. 13 Sanitary Sewer $3.4 million State Loan Fund $2.6 million Water Wastewater Water Quality Improvements Fund/State Loan Fund Inflow/Infiltration $1.8 million State Loan Fund Tar Ditch Interceptor $518,230 Sewer Impact Fees Del. State Pump Station $336,400 Bond Replacement Acorn Lane Pump Station $336,400 Bond Replacement 21

Water/Wastewater Fund Future Projected Rate Increases In order to fund capital projects, State Loans have been issued for $8.3 million and a $15 million bond issue is necessary in Fiscal Year 2011. This will result in the following proposed rate increases: Water Wastewater Fiscal Year 2010 10 % 0% Fiscal Year 2011 10% 10% 22

Water/Wastewater Fund Impact of Proposed Rate Increase on Typical Water/Sewer Bill ( 7,000 gallons per month) Year Water $ Sewer $ Monthly $ Annual $ 2009 ‐2010 +1.75 ‐ +1.75 +21.00 2010 ‐2011 +1.82 +1.47 +.3.29 +39.48 2‐Year Increase +3.57 +1.47 +5.04 +60.48 Notes: This assumes no change in the Kent County Sewer Adj. Charge. This assumes no change to our rate structure. 23

Did you know that… According to University of Delaware IPA report Synthesis of Water Rates in Delaware and Contiguous States, December 2008 . . . Out of the 29 water providers in Delaware, Dover’s new proposed water rate would rank 5th most affordable. Only 4 water providers’ rates would be lower than Dover. 24

Water/Wastewater Fund Average Quarterly Residential Water Rates* Dover (inside city) *Source: University of Delaware- Synthesis of Water Rates in Delaware & Contiguous States, December 2008

Water/Wastewater Fund Comparisons Water Rates Sewer Rates Customer/Initial Rate per 1000 Customer/Initial Rate per 1000 Charge (month) gallons (In City) Charge (month) gallons (In City) City of Dover ‐ Current $1.25 $2.45 $1.25 $2.10 City of Milford $3.25 $3.25 $10.00 $2.43 City of New Castle $7.50 $4.60 ‐ ‐ Town of Middletown $8.50 $2.55 $8.50 $2.55 Town of Smyrna $10.00 ± $2.75 $18.94 ± $6.00 Tidewater Utilities $14.76 $5.65 n/a n/a Artesian Water $11.56 $5.89 n/a $75.00 Flat Rate Proposed 2010 $1.25 $2.70 $1.25 $2.10 Proposed 2011 $1.25 $2.92 $1.25 $2.31 26

Electric Fund 27

Fiscal Year 2009-2010 Revenue $111,623,878 Expense 102,931,181 Balance Carry Forward: $ 8,692,697 (meets 8% requirement) Revenue Includes − Transfer from rate stabilization reserve to avoid rate increase. − Miscellaneous Service revenue of $1,051,184. − Emission sales credits of $274,000. 28

Fiscal Year 2009-2010 Electric Fund Expenses − Power supply costs projected to increase 6.6% without Rate Stabilization credit. 2008/09 2009/10 %CHANGE REVISED BUDGET 2009/10 EXPENSES: POWER SUPPLY 63,410,077 55,619,481 -12.3% POWER SUPPLY MANAGEMENT 3,088,808 3,000,000 -2.9% PJM CHARGES - LOAD 3,510,195 13,943,413 297.2% CAPACITY CHARGES 10,692,738 13,469,528 26.0% RATE STABILIZATION CREDIT - (3,000,000) SUB-TOTAL POWER SUPPLY 80,701,818 83,032,422 2.9% − Rate Stabilization credit equals $3 million. − Power plant costs expected to decrease 2%. − Transfer $2.5 million to the Electric Capital Projects Fund. 29

Electric Fund Where does the money go? − 72% for power supply related expenses. − 5% for capital projects. − Remaining 23% for personnel services, material and supplies, and other administrative expenses. 30

Electric Fund Top Revenue Sources Direct Sales to Customers $99,533,042 Utility Tax 1,781,500 Miscellaneous Revenue 1,051,184 Top Expenses Purchase Power $83,032,422 Transfer to General Fund 6,758,100 Powerplant 5,798,710 Debt Service 3,956,600 Intrafund Service Fees 3,496,400 Transmission & Distribution Fees 3,351,795 31

Electric Fund Top Capital Investments Projects Name Amount Fund Mid City Substation $1,593,461 Electric Bond Distribution System Upgrades $1,154,000 Electric Bond/Electric Fund Improvement and Extension New Development Upgrades $831,000 Fund VanSant CT Mark IV Upgrades $700,000 Electric Bond 32

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EXHIBIT #2 2009 Budget Hearings Special Council Meeting of 05/19/2009

EXHIBIT #3 2009 Budget Hearings Special Council Meeting of 05/19/2009

EXHIBIT #4 2009 Budget Hearings Special Council Meeting of 05/19/2009 Fiscal 2009-2010 Draft Budget Review by Division EXHIBIT #4 May 19, 2009 2009 Budget Hearings Special Council Meeting of 05/19/2009

Changes to Previously Reviewed Budgets All previously reviewed budgets were affected by: ` Elimination of non-bargaining pay raises ` Bargaining unit 12 days (8hours/day) leave without pay. ` One exception - Mayor’s salary which is set by Code. 2

Changes to Previously Reviewed Budgets continued Presented Adjustment Revised Mayor 110-3200-519-30-28 Training/Travel 7,000 (7,000) - 110-3200-519-30-35 Community Relations Expense 6,800 (5,000) 1,800 110-3200-519-30-31 Contractual Services 4,486 (4,486) - 147-3200-519-40-22 Auto Purchase 19,528 (19,528) - 147-3200-519-40-25 Other Equipment Purchase 122,000 (122,000) - City Council 110-3200-519-20-38 Laptops - 5 16,800 (14,000) 2,800 110-3200-519-30-28 Training/Travel 15,000 (15,000) - City Manager 110-2100-515-30-28 Training/Travel 3,500 (1,500) 2,000 110-2100-515-30-35 Community Relations 3,000 (1,000) 2,000 Central Services 110-2700-571-10-11 Reduction In Terminal Leave 293,084 (19,126) 273,958 110-2700-571-20-26 Prog Expenses 3,000 (3,000) - Facilities Management 147-2500-552-40-31 Space Needs Implementation 115,000 (115,000) Customer Svc 110-2900-529-20-38 Computer Hdwe Scanners 15,200 (5,400) 9,800 Finance 110-2300-517-10-00 Accountant II 728,300 (65,260) 663,040 IT 110-2200-516-10-11 Reduction In Terminal Leave 443,885 (15,247) 428,638 147-2200-516-40-25 GPS Tracking of City Fleet+ printer 19,125 (19,125) - 147-2200-516-40-27 Computer Hdwe 19,000 (12,000) 7,000 3

Water/Wastewater Fund May 19, 2009 4

Water/Wastewater Engineering page 281 † Personnel Costs $ 680,791 3%Ç † Materials & Supplies 11,855 91%È † Administrative Expenses 9,141 150%È † Capital Outlay - 0% † Total Budget $701,787 3%È Personnel Costs are up due to increases in salary, overtime, health insurance, educational assistance, and pension budgets. Materials & Supplies expenditures are decreased due to reduced computer software, medical supplies and physicals. Administrative Expenses are decreased due to reductions in Training and Conference. 5

Wastewater Management page 282 † Personnel Costs $ 660,326 0% † Materials & Supplies 85,089 9%È † Administrative Expenses 243,040 93%È † Capital Outlay 6,539,110 29%Ç † Total Budget $7,527,565 22%Ç Personnel Costs are unchanged due to increases in salary, overtime, and pension budgets being offset by salary reductions to balance the budget. Salary increases were due to the re-allocation of staff salary expense between Water and Wastewater budgets. Materials & Supplies expenditures are decreased due to reduced medical supplies and physicals, security and safety materials, small tools and city building maintenance supplies. Administrative Expenses are decreased due to Fiscal 2009 Wastewater Master Plan expenses being unnecessary in Fiscal 2010. Capital Expenses are increasing for the US 13 Sanitary Sewer and Inflow/Infiltration projects. 6

Water Management page 283 † Personnel Costs $ 313,407 3%È † Materials & Supplies 64,127 13%È † Administrative Expenses 81,499 223%È † Capital Outlay 2,987,317 2%È † Total Budget $3,446,350 3%È Personnel Costs are down due to reductions in salary budgets. Materials & Supplies expenditures are decreased due to reduced printing and duplicating, medical supplies and physicals, security and safety, and computer software. Administrative Expenses are decreased due to Fiscal 2009 Water Cost of Service Study expenses being unnecessary in Fiscal 2010. Capital Expenses are decreasing. Fiscal 2009 included $200,000 for South Governors Avenue project which is not necessary in Fiscal 2010. 7

Water Construction page 284 † Personnel Costs $360,909 27%È † Materials & Supplies 9,430 103%È † Administrative Expenses 39,999 0%È † Capital Outlay 0 0% † Total Budget $410,338 33%È Personnel Costs are down due to reductions in salary budgets. Materials & Supplies expenditures have decreased due to reduced, medical supplies and physicals, small tools, and computer hardware. Administrative Expenses are unchanged from Fiscal 2009. Capital Expenses are decreasing. Fiscal 2009 included $29,000 for other equipment purchases which were not necessary in Fiscal 2010. 8

Water Treatment page 285 † Personnel Costs $ 680,439 5%Ç † Materials & Supplies 141,900 5%È † Administrative Expenses 696,135 17%Ç † Capital Outlay 39,000 N/A † Total Budget $1,557,474 12%Ç Personnel Costs are up slightly due to increases in overtime, health insurance, and pension costs. Materials & Supplies expenditures are decreased due to reduced, medical supplies and physicals, and chemicals and additives. Administrative Expenses are increased to reflect electricity costs that were under estimated in the Fiscal 2009 budget. Capital Expenses budgeted to replace a four passenger vehicle. The existing vehicle is not road worthy. 9

General Fund May 20, 2009 10

Parks & Recreation page 233 † Personnel Costs $ 478,965 17%È † Materials & Supplies 77,932 17%È † Administrative Expenses 205,642 5%È † Capital Outlay 0 N/A † Total Budget $762,539 79%È Personnel Costs are down due to decreases in temporary help and pension costs. Materials & Supplies expenditures are decreased due to reduced, program expenses and supplies. Administrative Expenses are decreased due to reduced heating oil, advertisement, and contractual services. 11

Library page 234 † Personnel Costs $ 952,914 2%È † Materials & Supplies 93,141 5%Ç † Administrative Expenses 107,732 4%È † Capital Outlay 8,912,433 87%Ç † Total Budget $10,066,220 76%Ç Personnel Costs are down due to decreases in health insurance and pension costs. Materials & Supplies expenditures are increased for computer hardware. Administrative Expenses are decreased due to reduction in contractual services for security. Capital expenses include the continuation of the Regional Library. 12

Police page 239-240 † Personnel Costs - Civilian $ 1,760,824 9%È † Personnel Costs – Law Enforcement 9,029,948 4%È † Personnel Costs – Extra Duty 449,516 1%È † Materials & Supplies 340,516 5%Ç † Administrative Expenses 615,875 34%È † Capital Outlay 73,700 87%Ç † Total Budget $12,270,379 8%Ç Personnel Costs are down due to reductions in salary budgets. In addition, no raises have been budgeted for the FOP who are still engaged in contract negotiations. Materials & Supplies expenditures are increased for computer hardware and gunshot residue testing. Administrative Expenses are decreased due to the transfer of ambulance services contract to Life Safety Budget ($245,000). Capital expenses decreased due to the elimination of vehicles and most capital projects. 13

Planning page 258 † Personnel Costs $ 381,373 18%È † Materials & Supplies 19,870 62%Ç † Administrative Expenses 11,680 119%È † Capital Outlay - † Total Budget $412,923 17%È This department’s total budget is 17% less than last year. Personnel Costs are down due to reductions in salary budgets. Materials & Supplies expenditures are increased for the purchase of computer hardware. Administrative Expenses are decreased. Consulting fees associated with the Comprehensive Plan are eliminated. Training and Conference expensed where reduced. 14

Code Enforcement page 259 † Personnel Costs $ 356,570 1%Ç † Materials & Supplies 14,225 20%È † Administrative Expenses 7,945 49%È † Capital Outlay - 0% † Total Budget $378,740 1%È Personnel Costs are up due to the projected use of overtime and educational assistance. Materials & Supplies are decreased due to reductions in program expenses and supplies (grass cutting), books, and computer software. Administrative Expenses are decreased due to reductions in Training and Conference. 15

Economic Development page 260 † Personnel Costs $ 181,848 18%È † Materials & Supplies 2,000 2151%È † Administrative Expenses 61,750 14%Ç † Capital Outlay - † Total Budget $245,598 27%È Personnel Costs are down due to reductions in salary budgets. Materials & Supplies expenses are lower due to a decrease in program expenses and supplies. Last year’s organizational committee budgets were included in this budget. They are being budgeted differently in Fiscal 2010. Administrative Expenses are up due to including building rent, cleaning and the addition of the yearly Kent County Economic Development payment. The expense of gasoline has been added. 16

Community Development page 207 † Personnel Costs $ 65,098 1%È † Materials & Supplies 225,049 100%Ç † Administrative Expenses 2,578 93%È † Program Expenses 70 Series - † Total Budget $292,725 13%È Personnel Costs are down due to reductions in salary budgets. Materials & Supplies and Program Expenses 70 Series net each other out because CDBG grants are budgeted in Program Expenses until they are assigned to a program or project. Administrative Expenses are reduced in the Training and Conference line item. 17

Life Safety page 267 † Personnel Costs $ 261,986 14%È † Materials & Supplies 25,500 43%Ç † Administrative Expenses 135,906 92%Ç † Capital Outlay - 0% † Total Budget $423,392 22%Ç Personnel Costs are down due to reductions in salary budgets. Materials & Supplies are increased due to the transfer of the Safety Program ($10,500) from Human Resources and for safety equipment ($3,700). Administrative Expenses are increased due to the transfer of the Ambulance Services contract from the Police budget. Monthly phone costs have increased with the use of three additional broadband cards. 18

Inspections page 268 † Personnel Costs $ 435,914 8%È † Materials & Supplies 12,825 13%Ç † Administrative Expenses 70,028 2%Ç † Capital Outlay - † Total Budget $518,767 6%È Personnel Costs are down due to reductions in salary budgets. Materials & Supplies are increased for computer hardware purchases. Administrative Expenses are increased to cover the actual cost of inspectors cell phones. 19

Grounds page 269 † Personnel Costs $ 955,464 3%È † Materials & Supplies 67,994 0% † Administrative Expenses 97,077 0% † Capital Outlay - † Total Budget $1,120,535 12%È Personnel Costs are down due to reductions in salary budgets. Materials & Supplies and Administrative Expenses were held to Fiscal 2009 budget levels. Capital Costs are down due to eliminating most capital spending. 20

Streets page 270 † Personnel Costs $ 671,533 1%Ç † Materials & Supplies 98,077 5%Ç † Administrative Expenses 89,350 6%È † Capital Outlay $350,000 101%È † Total Budget $1,208,960 29%È Personnel Costs are increased due to increases in pension, educational assistance, and health insurance. Materials & Supplies increased $5,202 for computer hardware purchases along with sand and salt purchases. Administrative Expenses were reduced and compensate for the increase in Materials & Supplies. Capital Costs are down due to the elimination of most capital spending. The Street and Concrete Program is budgeted at $350,000 total. 21

Sanitation page 271 † Personnel Costs $ 772,542 1%È † Materials & Supplies 43,976 0% † Administrative Expenses 1,384,453 0% † Capital Outlay - 0% † Total Budget $2,200,971 15%È Personnel Costs are down due to reductions in salary budgets. Materials & Supplies and Administrative Expenses are unchanged from Fiscal 2009 budgeted levels. Capital Costs are down due to eliminating most capital spending. 22

Public Services Admin page 272 † Personnel Costs $ 331,641 1%È † Materials & Supplies 11,025 12%Ç † Administrative Expenses 15,202 10%Ç † Capital Outlay 0 È † Total Budget $357,868 11%È Personnel Costs are down due to reductions in salary budgets. Materials & Supplies are increased due to computer hardware purchases. Administrative Expenses are increased for map revisions of Puncheon Run. Capital Expenditures are down due to deferring the GIS Infrastructure and Mobile Solutions project. 23

Fire page 208 † Personnel Costs $ 469,153 4%Ç † Materials & Supplies 75,680 1%È † Administrative Expenses 205,612 6%Ç † Capital Outlay 292,210 1%È † Total Budget $1,042,655 2%Ç Personnel Costs are increased as the dispatchers in this budget were not affected by the 12 days of leave without pay. Materials and Supplies are relatively unchanged from the Fiscal 2009 budget. Administrative Expenses are increased for truck repairs. Capital Expenses are reduced because radio purchases are less in Fiscal 2010 than in Fiscal 2009. 24

Electric Fund May 21, 2009 25

Public Utilities Admin page 291 † Personnel Costs $ 338,127 2%È † Materials & Supplies 113,722 7%Ç † Administrative Expenses 191,250 11%È † Capital Outlay - 0% † Total Budget $643,099 3%È Personnel Costs are down due to reductions in salary budgets. Materials & Supplies are increased for computer hardware purchases. Administrative Expenses are decreased from reductions in Training and Consulting. 26

Systems Operations page 292 † Personnel Costs $623,120 11%Ç † Materials & Supplies 1,400 0% † Administrative Expenses - 0% † Capital Outlay - 0% † Total Budget $624,520 11%Ç Personnel Costs are up due to contractual increases and increased health care costs. Dispatchers are not affected by the 12 days of leave without pay. Materials & Supplies are increased for computer hardware purchases. 27

Electric Engineering page 293 - 294 † Personnel Costs $ 1,160,294 1%Ç † Materials & Supplies 91,409 4%Ç † Administrative Expenses 250,922 73%È † Capital Outlay 3,525,536 171%È † Total Budget $5,028,161 123%È Personnel Costs are up due to increased overtime and health care. Overtime was increased from Fiscal 2009 budget for capital projects. Materials & Supplies increased for computer hardware purchases. Administrative Expenses decreased due to lower contractual services. The ESRI conversion project was budgeted in Fiscal 2009 and is not in Fiscal 2010. Capital Outlay is lower due to the decreased costs of projected CIP projects. 28

Electric T&D page 295 † Personnel Costs $ 2,344,536 9%È † Materials & Supplies 461,427 2%Ç † Administrative Expenses 514,537 32%È † Capital Outlay 1,127,147 2%Ç † Total Budget $4,447,647 4%È Personnel Costs are up due to increased overtime and health care. Overtime increased from Fiscal 2009 budget for capital projects. Materials & Supplies are increased for computer hardware purchases. Administrative Expenses decreased due to lower contractual services. The ESRI conversion project was budgeted in Fiscal 2009 and is not in Fiscal 2010. Capital Outlay is lower due to the decreased costs of projected CIP projects. 29

Power Plant Operations pages 296 -297 † Personnel Costs $ 3,443,325 1%Ç † 65 Series 1,064,603 3%Ç † 75 Series 43,000 2%Ç † 85 Series 300,100 75%È † 95 Series 947,682 2%Ç † Capital Outlay 1,254,000 115%È † Total Budget $7,052,710 22%È Personnel Costs increased due to salaries, incentive accumulator and burden. These increases were offset by reductions in overtime, educational assistance, and benefits. Increases in contractual services, management fee, supply incentive were offset by decreases in licenses & permits, insurance, training, and environmental. All other expense categories are decreased. 30

Power Supply page 298 65 Series Supply Mgmt and Incentive Fees 3,497,250 12%Ç 95 Series Purchases, capacity, and PJM 69,198,071 5%Ç Charges 98 Fuel 1,275,251 87%È Total Budget $73,970,572 4%Ç This budget includes 2030 Power Plant Development - Phase 3 for $210,000 and a Power Management RFP for $297,250. The budget also includes estimated power supply and fuel costs for Fiscal 2010. 31

Final Discussion and Wrap-Up 32