Attachment

EXHIBIT #1 Special Council Meeting - 2008 Budget Hearings (May 14, 15, 21, and 22, and June 2, 10, and 19, 2008) EXHIBIT #1 Special Council Meeting - 2008 Budget Hearings (May 14, 15, 21, and 22, and June 2, 10, and 19, 2008)

EXHIBIT #2 Special Council Meeting - 2008 Budget Hearings (May 14, 15, 21, and 22, and June 2, 10, and 19, 2008) EXHIBIT #2 Special Council Meeting - 2008 Budget Hearings (May 14, 15, 21, and 22, and June 2, 10, and 19, 2008)

Is the Revenue needed now? • OPEB begins this year ‐ 2.5% of salaries • Full year of operations at the Pitts Center. • Full year of Sex Offender Officers. • Full year of Emergency Planning position. • Full year of expanded Ambulance coverage. • Health Insurance costs increased 8% city‐wide. • 4% increase for FOP bargaining unit. • 3.5% increase for IUE bargaining unit.

EXHIBIT #3 Special Council Meeting - 2008 Budget Hearings (May 14, 15, 21, and 22, and June 2, 10, and 19, 2008) EXHIBIT #3 Special Council Meeting - 2008 Budget Hearings (May 14, 15, 21, and 22, and June 2, 10, and 19, 2008)

EXHIBIT #4-A Special Council Meeting - 2008 Budget Hearings (May 14, 15, 21, and 22, and June 2, 10, and 19, 2008) Division Budget Review 2008-2009 Draft Budget

Water Operations page 221 † Personnel Costs $ 323,959 † Materials & Supplies 72,742 † Administrative Expenses 127,811 † Capital Outlay 3,058,450 † Total Budget $3,582,962 This department’s budget is 19.8% greater than last year’s budget because: - Capital projects have increased $1 million - Water Quality Improvement - $1.6 million - Elevated Water Storage Tank - $695,000 - All costs of positions are split with Wastewater. This correctly reflects the work they perform. 2

Wastewater page 219 † Personnel Costs $ 661,657 † Materials & Supplies 92,606 † Administrative Expenses 496,221 † Capital Outlay 4,632,150 † Total Budget $5,882,634 This department’s budget is 207.3% greater than last year’s budget because: - Wastewater Master Plan - $200,000 - Capital Projects increased by $3.6 million - US Rte. 13 East Sanitary Sewer Interceptor - $3.1 million - All costs of positions are split with Wastewater. This correctly reflects the work they perform. 3

Water/Wastewater Engineering & Inspections page 218 † Personnel Costs $669,926 † Materials & Supplies 22,601 † Administrative Expenses 22,885 † Capital Outlay 15,445 † Total Budget $730,857 This department’s budget is 10% greater than last year’s budget because: - Salary budget increased, full year of salaries in 2009 for new positions in 2008. 4

Construction page 222 † Personnel Costs $456,905 † Materials & Supplies 19,190 † Administrative Expenses 39,999 † Capital Outlay 29,000 † Total Budget $545,094 This department’s budget is the same as last year’s budget because: -Salary budgets reflect replacement of Construction Manager with lower grade Project Supervisor. - Capital Expenditures reduced from FY08. 5

Water Treatment & Production page 223 † Personnel Costs $ 651,660 † Materials & Supplies 149,019 † Administrative Expenses 579,199 † Capital Outlay - † Total Budget $1,379,878 This department’s budget is 40.5% greater than last year’s budget because: - Re-budgeting expenses $402,320 from other divisions (Water) to Water Treatment where they are more appropriately expensed. - Electricity for deep wells –$304,770 - Contractual Services - $86,700 6

Second Meeting Budget Review General Fund Divisions 2008-2009 Draft Budget 7

Mayor page 166 † Personnel Costs $45,124 † Materials & Supplies 586 † Administrative Expenses 41,929 † Capital Outlay - † Total Budget $98,437 This department’s budget is 23.5% % less than last year’s budget because: „- Computer purchase in FY08 „- Economic Development monies removed from budget due to constraints. „- Pilot monies removed due to formation of Economic Development division. 8

City Council page 168 † Personnel Costs $100,384 † Materials & Supplies 1,320 † Administrative Expenses 35,486 † Capital Outlay - † Total Budget $137,190 This department’s budget is 9.4% greater than last year’s budget because: - More meeting reimbursement budgeted due to increased meetings. - Increases in training/conference and subscriptions & dues. 9

City Manager page 170 † Personnel Costs $453,976 † Materials & Supplies 27,637 † Administrative Expenses 106,730 † Capital Outlay - † Total Budget $588,343 This department’s budget is 3% less than last year’s budget because: -Employee retirement pay budgeted last year. - Computer purchases deferred. - Deleting the Citizen Survey for FY09. - Legal expenses reduced. 10

Central Services page 172 † Personnel Costs $432,821 † Materials & Supplies 18,798 † Administrative Expenses 318,862 † Capital Outlay 9,996 † Total Budget $780,477 This department’s budget is 5.5% greater than last year’s budget because: - Salary and benefit increases and employee upgrades. - Postage costs. Other things to know - Warehouse shingles replacement $9,996 re-budgeted from FY08. 11

Facilities Management page 173 † Personnel Costs $939,805 † Materials & Supplies 33,152 † Administrative Expenses 162,912 † Capital Outlay 140,000 † Total Budget $1,275,869 This department’s budget is 17.18% greater than last year's budget because: - Salary and benefit increases - Space needs study implementation- $140,000 12

Fleet Maintenance page 173 † Personnel Costs $382,264 † Materials & Supplies 315,476 † Administrative Expenses 5,635 † Capital Outlay - † Total Budget $703,375 This department’s budget is 5 % greater than last year's budget because: - Salary and benefit increases. - Program expenses – vehicle repairs were lowered in FY08 and increased to reflect FY07 actual expense for FY09. 13

City Clerk page 176 † Personnel Costs $277,590 † Materials & Supplies 6,470 † Administrative Expenses 31,661 † Capital Outlay - † Total Budget $315,721 This department’s budget is 25% greater than last year's budget because: - Full staffing levels budgeted. FY08 reflects the actual partial staffing levels. - All other categories of expenditures are down. 14

Customer Services page 178 † Personnel Costs $ 906,011 † Materials & Supplies 46,720 † Administrative Expenses 49,636 † Capital Outlay - † Total Budget $1,002,367 This department’s budget is 15% less than last year's budget because: - Credit card processing fees are removed from the budget due to proposed third party processing. - Salary and benefits are increasing 2.66%. 15

Water Meter Reading page 179 † Personnel Costs $66,175 † Materials & Supplies 3,192 † Administrative Expenses 4,210 † Capital Outlay - † Total Budget $73,577 This department’s budget is 4.35% greater than last year's budget because: - Salary expenses & benefits are increased 10.8% for increased on-call. - Materials and supplies are increased due to small tool expenses and flame retardant uniforms. - Administrative expenses are increased for gasoline, vehicle repairs and maintenance. 16

Electric Meter Reading page 180 † Personnel Costs $261,716 † Materials & Supplies 14,054 † Administrative Expenses 19,886 † Capital Outlay - † Total Budget $295,656 This department’s budget is 11% less than last year's budget because: - Salary expenses are less – reduced staffing of one meter reader. - Capital purchase made in FY08 and not in FY09. 17

Finance page 182 † Personnel Costs $672,180 † Materials & Supplies 9,000 † Administrative Expenses 112,250 † Capital Outlay 275 † Total Budget $793,705 This department’s budget is 2% less than last year's budget because: - Material & supplies are down due to deferment of computers. - Administrative expenses are down due to decreases in training, consulting, and legal expenses. - Salary and benefit increases 5%. 18

Human Resources page 186 † Personnel Costs $320,704 † Materials & Supplies 77,665 † Administrative Expenses 47,750 † Capital Outlay - † Total Budget $446,119 This department’s budget is 7% greater than last year's budget because: - Salary and benefit increases are 15.41% due to changes in employee benefits – health, pension and OPEB. - Personnel Related Supplies. - Unemployment Expense – Rev. FY08 lowered – FY09 returned to regular budget levels. 19

Information Technology page 188 † Personnel Costs $ 645,528 † Materials & Supplies 88,313 † Administrative Expenses 159,000 † Capital Outlay 110,915 † Total Budget $1,003,756 This department’s budget is 3% less than last year's budget because: - Capital Projects are deferred in FY09. - Expand Document Imaging - $112,580. - GPS Implementation - $33,750. - Salary & benefits are increased due to full year of 1/2 year position in FY08. - Computer Software is increased to support an enterprise agreement for GIS software which results is savings in other departments. 20

Parks and Recreation page 190 † Personnel Costs $ 563,752 † Materials & Supplies 93,854 † Administrative Expenses 280,110 † Capital Outlay 530,000 † Total Budget $1,467,716 This department’s budget is 28% greater than last year's budget after normalizing for the Pitts Center construction in FY08: - Full year of operation for Pitts Center equals $280,000. This includes: - Full year of one full-time/4 part-time positions - $161,359 - Materials & Supplies - $35,994 - Administrative Expenses - $82,355 21

Library page 191 † Personnel Costs $ 977,847 † Materials & Supplies 90,291 † Administrative Expenses 112,169 † Capital Outlay 1,200,000 † Total Budget $2,380,307 This department’s budget is 2% greater than last year's budget after normalizing for the regional library and because: - Salary & benefit increases. - Electricity increase. - Full year of contractual services for Security. Other Notes - Regional Library project begins - $1.2 million. 22

Police pages 193 -194 † Personnel Costs $11,795,471 † Materials & Supplies 315,781 † Administrative Expenses 837,840 † Capital Outlay 266,126 † Total Budget $13,215,218 This department’s budget is 9.8% greater than last year's budget because: - Salary and benefits are increased. - A full year budgeted for two full-time officers budgeted in FY08 for a quarter of a year. Other things to know - Materials & Supplies costs increased for uniforms and computer software. - Administrative costs have risen for contractual services. - There is no increase in staffing levels. 23

Tax Assessor page 196 † Personnel Costs $264,848 † Materials & Supplies 13,298 † Administrative Expenses 411,579 † Capital Outlay - † Total Budget $689,725 This department’s budget is 12% less than last year's budget after normalizing for the re-evaluation and because: „- Positions were not filled to perform re-evaluation. „- Re-evaluation will be performed contractually. 24

Public Services Admin page 198 † Personnel Costs $ 336,458 † Materials & Supplies 9,975 † Administrative Expenses 13,658 † Capital Outlay 38,380 † Total Budget $398,471 This department’s budget is 7% less than last year's budget because: - Staffing changes due to reorganization: the Emergency Preparedness Coordinator is transferred to the newly formed Life Safety Division. Other things to know - Capital Funds are budget for GIS infrastructure and mobile solutions - $38,380. - Includes Public Works Inspector. 25

Planning & Inspections Summary † Planning $ 613,265 † Life Safety 325,511 † Code Enforcement 383,218 † Inspections 552,442 † Total Budget $1,874,436 Last year these four divisions were two divisions – Planning and Inspections. They were separated into four divisions for better accountability and to organize the group along functional lines. - The Life Safety group consists of the Emergency Planning Coordinator (formerly budgeted in PS Administration) and the Fire Marshall staff (formerly budgeted in Inspections). - The Code Enforcement (formerly budgeted in Inspections) division will include all inspectors performing property maintenance versus building inspection. The Inspections division will continue to function as building inspections. 26

Planning page 203 † Personnel Costs $ 579,895 † Materials & Supplies 7,630 † Administrative Expenses 25,740 † Capital Outlay - † Total Budget $613,265 This department’s budget is 14% greater than last year's budget because: - Staffing changes due to reorganization: Director moved from Inspections to Planning. - Salary and benefit increases. - Comprehensive Plan Review costs totaling $22,178. 27

Inspections page 206 † Personnel Costs $ 471,702 † Materials & Supplies 11,124 † Administrative Expenses 69,616 † Capital Outlay - † Total Budget $552,442 This department’s budget less than last year's budget because: - Staffing changes due to reorganization: Code enforcement Inspectors and Fire Marshals have been transferred out of this division & into Code Enforcement and Life Safety Divisions. Director was moved to Planning division. This is a reduction of 9 employees. - This division includes Building Inspections and Permitting & Licensing staff of 7 employees. - This division reports to the Public Services Manager. 28

Code Enforcement page 204 † Personnel Costs $ 354,048 † Materials & Supplies 17,025 † Administrative Expenses 12,145 † Capital Outlay - † Total Budget $383,218 This is a newly created division: - Code enforcement inspectors have been transferred out of the Inspections division into Code Enforcement. - The staffing level is 5. - This division reports to the Planning Director. 29

Life Safety page 202 † Personnel Costs $ 299,309 † Materials & Supplies 14,740 † Administrative Expenses 11,462 † Capital Outlay 4,200 † Total Budget $329,711 This is a newly created division: - The Fire Marshal staff has been transferred out of the Inspections division into the Life Safety division. The Emergency Preparedness Coordinator position has been transferred from Public Services Administration to this division. - This division includes Building Inspections and Permitting & Licensing staff of 4. - This division reports to the Public Services Manager. 30

Grounds page 199 † Personnel Costs $ 965,468 † Materials & Supplies 69,662 † Administrative Expenses 97,112 † Capital Outlay 109,500 † Total Budget $1,241,742 This department’s budget is 3.6% greater than last year's budget because: - Salary and benefit increases of 7.14% – salary, health, pension, and OPEB. - Capital spending is reduced by $20,413. 31

Sanitation page 200 † Personnel Costs $ 758,400 † Materials & Supplies 43,976 † Administrative Expenses 1,398,882 † Capital Outlay 315,000 † Total Budget $2,516,258 This department’s budget is 7% less than last year's budget because: - Capital spending is less in FY09 than in FY08 – only one trash truck and one bulk truck are being purchased in FY09. Other things to know -Salary and benefit increases of 3.46%. - Administrative expense increases for contractual services (landfill fees), temporary help, and gasoline. 32

Streets page 201 † Personnel Costs $ 657,372 † Materials & Supplies 94,768 † Administrative Expenses 94,550 † Capital Outlay 727,470 † Total Budget $1,574,160 This department’s budget is 5% greater than last year's budget because: - Salary and benefit increases of 5.8%. - Administrative expenses increased due to aggressive equipment repair program. - Capital spending is greater in FY09 than in FY08 – Streets and Alley Program increased, equipment replacement greater – street sweeper, leaf vacuum, one ton roller. 33

Economic Development page 205 † Personnel Costs $ 217,506 † Materials & Supplies 45,025 † Administrative Expenses 52,800 † Capital Outlay - † Total Budget $315,331 This is a newly created division: - This division will support the increased emphasis on economic development for Dover and the Downtown Dover Partnership - There are three positions for this division. These positions include a marketing professional, Main Street Manager, and an administrative assistant. The Main Street Manager is currently occupied and the City will assume responsibility for it. 34

Community Development page 207 † Personnel Costs $199,649 † Materials & Supplies 242,370 † Administrative Expenses 5,349 † Program Expenses 70 Series - † Total Budget $447,368 This department’s budget is 2.8% greater than last year's budget because: - Capital spending for CDBG is greater in FY09 than in FY08. 35

Third Meeting Division Budget Review Electric Fund 2008-2009 Draft Budget 36

Public Utilities Admin page 210 † Personnel Costs $ 348,063 † Materials & Supplies 105,832 † Administrative Expenses 212,850 † Capital Outlay - † Total Budget $666,745 This department’s budget is 18% less than last year's budget because: - Legal expenses, consulting fees, and subscriptions and dues have been reduced. - Capital spending is less in FY09 than in FY08. 37

Public Utilities System Operations Page 211 † Personnel Costs $ 553,954 † Materials & Supplies - † Administrative Expenses - † Capital Outlay - † Total Budget $553,954 This division contains only the salary and benefits of the system operators: - This allows for allocation of the service between Water/Wastewater and Electric - Salary and benefits rose 1.5 %. - This reflects the contractual and benefit increases. - FY08 contained retirement pay that is not in FY09 making the percentage change appear lower. 38

Public Utilities Electric T&D page 214 † Personnel Costs $ 2,552,521 † Materials & Supplies 450,527 † Administrative Expenses 678,032 † Capital Outlay 933,500 † Total Budget $4,614,580 This department’s budget is 8 less than last year's budget because: - Capital spending is decreased from FY08. - Materials and supplies and Administrative Expenses are also decreased from FY08. - Salary and benefit increases are 9.3%. 39

Public Utilities Electric Engineering pages 212 - 213 † Personnel Costs $ 1,150,906 † Materials & Supplies 88,059 † Administrative Expenses 433,422 † Capital Outlay 9,556,887 † Total Budget $11,229,274 This department’s budget is 37.5 % less than last year's budget because: „ Capital projects are $6.8 million less than in FY 2008 „ Other things to know: „ Salary and benefit increases are 7.5% „ Contractual services are increasing due to a project to convert a previouslast year's used type of GIS system to the current City standard 40

Public Utilities Power Plant pages 215 -216 † Personnel Costs $ 3,398,082 † 65 Series 1,027,964 † 75 Series 42,000 † 85 Series 526,200 † 95 Series 927,400 † Capital Outlay 2,690,000 † Total Budget $8,611,646 This department’s budget is 29.38% greater than last year's budget because: - Capital spending is increased from FY 08 by $1.9 million - Salary and benefit increases are 3.9% 41

Public Utilities Power Supply page 217 65 Series Supply Mgmt and Incentive Fees 3,088,808 95 Series Purchases, capacity, and PJM Charges 65,794,260 98 Fuel 2,382,179 Total Budget $71,265,247 This department’s budget is 10.05 % greater than last year's budget because: - Increased charges for purchase of power 42

Fire page 184 † Personnel Costs $ 452,490 † Materials & Supplies 66,850 † Administrative Expenses 196,660 † Capital Outlay 296,210 † Total Budget $1,012,210 This department’s budget is 5.5% greater than last year's budget because: - Salary and benefit increases of 12% due to a correction in the way salary budgets are calculated. - Materials and Supplies and Admin expenses are less in 2009. † Other things to know - Capital Projects - Annual Contribution - $288,210 - Radio Purchase- $8,000 43

EXHIBIT #4-B Special Council Meeting - 2008 Budget Hearings (May 14, 15, 21, and 22, and June 2, 10, and 19, 2008) EXHIBIT #4-B Special Council Meeting - 2008 Budget Hearings (May 14, 15, 21, and 22, and June 2, 10, and 19, 2008)

EXHIBIT #5 Special Council Meeting - 2008 Budget Hearings (May 14, 15, 21, and 22, and June 2, 10, and 19, 2008) EXHIBIT #5 Special Council Meeting - 2008 Budget Hearings (May 14, 15, 21, and 22, and June 2, 10, and 19, 2008)

EXHIBIT #6 Special Council Meeting - 2008 Budget Hearings (May 14, 15, 21, and 22, and June 2, 10, and 19, 2008)

EXHIBIT #7 Special Council Meeting - 2008 Budget Hearings (May 14, 15, 21, and 22, and June 2, 10, and 19, 2008) City of Dover Finance Department PO Box 475 Dover DE 19903-0475 Phone: (302-736-7018 FAX: (302) 760-4930 E-Mail: dmitchell @dover.de.us MEMORANDUM To: City Council From: Donna Mitchell, Controller/Treasurer Copy: Mayor, City Manager, City Clerk, & Asst. Finance Director Date: March 14, 2008 Subject: Credit Card Fees The City of Dover accepts credit cards for payment of services and taxes. Credit Card companies charge the City processing fees which are in most cases a percentage of the purchase price. The increase in our electric rates has created an increase in these fees. The history is as follows: FY05 $119,000 FY06 $111,000 FY07 $195,000 FY08 $144,000 thru January (Revised Budget $214,000) Our Customer Service Supervisor has been researching third party providers that will accept credit cards on behalf of the City through internet, telephone, and kiosk. These providers charge a convenience fee which will cover the credit card fee as well as their cost of service. They also only allow a maximum charge (i.e. $500). If the maximum charge is less than the billed amount the customer would need to request additional transactions in increments of $500 until they reached their total bill. The net result is they would pay this fee for each transaction. This will also affect the State of Delaware as approximately $135,000 (based on analysis done in FY07) of these fees is attributed to the State using a P-Card to pay all of their utility bills. P-Cards have a higher fee than a credit card as they provide rebates to the user. I have asked the Customer Service Supervisor to see if we can’t get this up and running for July 2008 in order to reduce budgeted expenses on the Electric Fund next year. In doing so we would notify all customers in advance that are frequent and major users of credit cards and offer them the ability to do bank drafting or an ACH transfer at no charge in lieu of using a credit card or P-Card. If you have any questions or concerns regarding this matter, I would appreciate hearing from you as soon as possible. Thank you.

EXHIBIT #8 Special Council Meeting - 2008 Budget Hearings (May 14, 15, 21, and 22, and June 2, 10, and 19, 2008) Budget Development for the New Division: EXHIBIT #8 How Did We Arrive at the Numbers? Special Council Meeting - 2008 Budget Hearings (May 14, 15, 21, and 22, and June 2, 10, and 19, 2008) 8/5/2008 1

The Positions Position Title Salary/Benefits Position Function Main Street Manager $71,642 •Existing position transferring from Main Street Dover •Would function much in the manner as current position functions Economic Development $83,853 •New position Manager •50% Downtown/50% Citywide Economic Development •Executive Director of Downtown Dover Partnership Administrative $61,853 •New position Assistant •Provide staff support to Economic Development Division & Downtown Dover Partnership •Project management & Downtown marketing 8/5/2008 2

What Would They Do? y Economic Development Manager y Executive Director to Downtown Dover Partnership y Supervisor to Main Street Manager & Administrative/Marketing Assistant y Business Relations & Retention y Market Garrison Oak y Promote Dover as Location for Business Location y Liaison with DEDO & Other Regional Organizations y Grant‐writing 8/5/2008 3

What Would They Do? y Main Street Manager y Case Manager for New/Potential Businesses Downtown y Review Loan Applications y Liaison between City/Partnership & Downtown Businesses y Staff to Downtown Dover Partnership and Partnership Committees y Liaison with State and National Main Street 8/5/2008 4

What Would They Do? y Administrative/Marketing Assistant y Staff Support to Economic Development Division & Downtown Dover Partnership y Plan and Coordinate Events y Produce Marketing Brochures/Materials 8/5/2008 5

Budget Line Items Line Item Current Proposed FY09 Justification Budgets Budget Furniture/Fixtures N/A $1,200 Furniture for two new positions Office Supplies MSD ‐ $600 $1,000 Accounts for added staff Printing & PA ‐ $500 $1,400 Much of the Parking Authority Duplicating MSD ‐ $600 & DDDC Printing/Duplicating Costs are currently absorbed by other budgets Photographic MSD ‐ $100 $200 Allows for purchase of digital camera Computer Software MSD ‐ $250 $600 Uncertain of actual needs, but need to budget appropriately Computer N/A $7,350 PCs for three positions Hardware Color laser printer 8/5/2008 6

Budget Line Items Line Item Current Proposed Justification Budgets FY09 Budget Telephone/Fax MSD ‐ $1,600 $2,450 Includes addition of PDA/cell phone for Economic Development Manager Advertisement MSD ‐ $200 $500 Implementation of Downtown Dover Partnership Training/Travel/ MSD ‐ $2,000 $4,400 Training and National Main Food/Conf PA ‐ $1,500 Street Conference Contractual MSD ‐ $5,000 $45,000 •Retain current Main Street PA ‐ $14,800* consultant •Parking lot rentals/lighting •Marketing plan (1 of 2 years) *Parking lot rentals & lighting can be billed to the Partnership’s Parking Reserve. 8/5/2008 7

Budget Line Items Line Item Current Proposed Justification Budgets FY09 Budget Program DDDC ‐ $2,850 $3,000 Expenses/Supplies MSD ‐ $23,425 No Change PA ‐ $5,000* No Change Parking Lot Maintenance Façade Grant ‐ No Change Grant funds, not City funds $2,000 *Parking lot maintenance can be billed to the Partnership’s Parking Reserve. 8/5/2008 8

Partnership Revenues (Based on FY08) y Operating Revenues y BID Tax $53,264 y Billing to Parking Reserve Accounts $20,000 y Parking Reserve Account y Rent & Fees $83,500 y Interest Income $8,000 y Development Project Reserve Account y Return of Principal $23,567 y Loan Interest $8,188 y Interest Income $12,000 ($8,000 DDDC/$4,000 MSD) y Other Potential Project Sources y Corporate Sponsorships y Membership Drives y Grants 8/5/2008 9

EXHIBIT #9 Special Council Meeting - 2008 Budget Hearings (May 14, 15, 21, and 22, and June 2, 10, and 19, 2008) FY 2009 Draft Budget Changes to General Fund as of May 21, 2008 2009 2009 2009 Proposed Draft Additions/ Revised Fund Page Account Number Budget (Reductions) Draft Budget General Planning 203 110-1600-533-00-00 $ 180,879 $ (126,479) $ 54,400 Grounds* 199 110-1500-522-00-00 68,815 16,757 85,572 Streets 201 110-1800-554-00-00 46,003 14,746 60,749 Sanitation 200 110-1800-555-00-00 54,324 24,353 78,677 Central Services* 172 110-2700-571-00-00 2,000 (1,000) 1,000 Facilities Management* 173 110-2500-552-00-00 2,000 (1,500) 500 Fleet Maintenance* 174 110-2800-572-00-00 2,500 (600) 1,900 Total $ 356,521 $ (73,723) $ 282,798 Net Increase to Fund Balance $ 75,033 EXHIBIT #9 Current Exess of Fund Balance $ 106,354 * Please note that Grounds, Central Services, Facilities Management and Fleet Maintenance are allocated and only part of the savings/increases affect the General Fund. Special Council Meeting - 2008 Budget Hearings (May 14, 15, 21, and 22, and June 2, 10, and 19, 2008) May 21, 2008 ‐ Budget Hearing 1

Additional Accumlative Proposed Additional Revenue Revenue Revenue Excess Fund Balance $ 106,354 $ 106,354 Permits $ 219,720 $ 326,074 1 cent on tax rate $ 286,569 $ 612,643 1 cent on tax rate $ 286,569 $ 899,212 Business Licences $ 145,000 $ 1,044,212 1 cent on tax rate $ 286,569 $ 1,330,781 May 21, 2008 ‐ Budget Hearing 2

Accumlative How Revenue Would Be Used Total Cost Cost Fire safety equipment 9,500 9,500 2.7% PFP Below Market Advancement 12,500 22,000 Excess Balance Non‐Bargaining Contingency\Captial Asset 90,000 112,000 Arts Council 3,805 115,805 Concrete Program Increase 25,000 140,805 GPS System 33,750 174,555 Permit Fee Increases Street Program\State Funds Contingency 100,000 274,555 Librarian I 50,095 324,650 Streets Program Increase\State Funds Cont. 180,000 504,650 African American Festival 7,500 512,150 One Cent Tax Increase Economic Development CDEDC 16,000 528,150 Police Vehicles Increase 80,000 608,150 Streets Program Increase\State Funds Cont. 150,000 758,150 Concrete Program Increase 30,000 788,150 One Cent Tax Increase Capital Asset\State Fund Contingency 100,000 888,150 State Funds Contingency\Capital Asset 155,000 1,043,150 Business License Increase Streets Program Increase 190,000 1,233,150 One Cent Tax Increase Capital Asset\State Fund Contingency 100,000 1,333,150 May 21, 2008 ‐ Budget Hearing 3

EXHIBIT #10 Special Council Meeting - 2008 Budget Hearings (May 14, 15, 21, and 22, and June 2, 10, and 19, 2008)

EXHIBIT #11 Special Council Meeting - 2008 Budget Hearings (May 14, 15, 21, and 22, and June 2, 10, and 19, 2008)

EXHIBIT #12-A Special Council Meeting - 2008 Budget Hearings (May 14, 15, 21, and 22, and June 2, 10, and 19, 2008) Non‐Bargaining Employees ‐ Below Market Increase (2.7%) Recommended Matrix with 2.7% Below Market PERFORMANCE SCORES PFP Score Adjustment Employee Above Employee Employee Employee From To Maximum Above Market At Market Below Market 0 19 ‐ ‐ ‐ ‐ 20 29 ‐ 1.75% 2.50% 5.20% 30 35 2.00% 2.50% 3.25% 5.95% 36 41 2.75% 3.25% 4.00% 6.70% 42 50 3.50% 4.00% 4.75% 7.45% Currently Budgeted PERFORMANCE SCORES PFP SCORE ADJUSTMENT EXHIBIT #12-A Employee Above Employee Above Employee At Employee Below From To Maximum Market Market Market 0 19 ‐ ‐ ‐ ‐ 20 29 ‐ 1.75% 2.50% 3.00% Special Council Meeting - 2008 Budget Hearings 30 35 2.00% 2.50% 3.25% 4.25% 36 41 2.75% 3.25% 4.00% 6.00% 42 50 3.50% 4.00% 4.75% 6.50% (May 14, 15, 21, and 22, and June 2, 10, and 19, 2008) May 22, 2008 Budget Hearing 1

EXHIBIT #12-B Special Council Meeting - 2008 Budget Hearings (May 14, 15, 21, and 22, and June 2, 10, and 19, 2008) Summary of Requested Accounts as of May 22, 2008 Last Year Acct # Description YTD Revised 08 Total 09 Actual 10‐12 Overtime $ 928,440 $ 869,851 $ 918,558 $ 941,120 30‐27 Subscriptions and Dues 119,262 94,404 126,210 113,217 30‐28 Training 161,316 150,107 187,772 211,201 30‐29 Consulting 182,864 57,346 240,050 364,750 30‐31 Contractual Services 2,525,671 2,191,430 2,914,142 3,424,842 30‐32 Legal 158,116 70,100 206,700 80,600 30‐35 Community Relations 27,240 18,956 29,500 32,685 Total $ 4,102,909 $ 3,452,194 $ 4,622,932 $ 5,168,415 EXHIBIT #12-B Special Council Meeting - 2008 Budget Hearings (May 14, 15, 21, and 22, and June 2, 10, and 19, 2008) May 22, 2008 Budget Hearing 2

Summary of Requested Accounts as of May 22, 2008 Water Electric General Totals Contractual Services $ 240,231 $ 829,923 $ 2,354,688 $ 3,424,842 Overtime $ 38,321 $ 347,957 $ 554,842 $ 941,120 All Others $ 319,605 $ 175,730 $ 307,118 $ 802,453 $ 5,168,415 May 22, 2008 Budget Hearing 3

EXHIBIT #12-C Special Council Meeting - 2008 Budget Hearings (May 14, 15, 21, and 22, and June 2, 10, and 19, 2008) Municipal Tax Rates FY2008 Assess Municipality Tax Rate FY 2008 Base Year Ratio (%) *Camden $0.70 per $100 of assessed value 60% 1987 *Harrington $0.71 per $100 of assessed value 60% 1987 *Middletown $0.30 per $100 of assessed value 100% 1983 Milford $0.46 per $100 of assessed value 100% 2002 *Newark $0.5614 per $100 of assessed value 100% 1983 Smyrna $0.2625 per $100 of assessed value 100% 2006 *Municipalities use their County Assessments/Ratios/Base Year EXHIBIT #12-C Special Council Meeting - 2008 Budget Hearings (May 14, 15, 21, and 22, and June 2, 10, and 19, 2008) May 22, 2008 Budget Hearing 4

EXHIBIT #12-D Special Council Meeting - 2008 Budget Hearings (May 14, 15, 21, and 22, and June 2, 10, and 19, 2008) Non‐Bargaining Contingency by Fund General Water Electric Total Contingency $88,994 $9,577 $50,197 $148,769 Excess Fund Excess Fund Excess Fund Funding Balance Balance Balance EXHIBIT #12-D Special Council Meeting - 2008 Budget Hearings (May 14, 15, 21, and 22, and June 2, 10, and 19, 2008) May 22, 2008 Budget Hearing 5

EXHIBIT #12-E Special Council Meeting - 2008 Budget Hearings (May 14, 15, 21, and 22, and June 2, 10, and 19, 2008) EXHIBIT #12-E Special Council Meeting - 2008 Budget Hearings (May 14, 15, 21, and 22, and June 2, 10, and 19, 2008)

EXHIBIT #12-F Special Council Meeting - 2008 Budget Hearings (May 14, 15, 21, and 22, and June 2, 10, and 19, 2008) EXHIBIT #12-F Special Council Meeting - 2008 Budget Hearings (May 14, 15, 21, and 22, and June 2, 10, and 19, 2008)

EXHIBIT #12-G Special Council Meeting - 2008 Budget Hearings (May 14, 15, 21, and 22, and June 2, 10, and 19, 2008)

EXHIBIT #13 Proposed Pay Grade Positions and Changes Special Council Meeting - 2008 Budget Hearings (May 14, 15, 21, and 22, and June 2, 10, and 19, 2008) A B C D E F G H (BxC) (D-A) (D+F) (G-A) Proposed Position 7/1/03 7/1/07 Percentage Proposed Difference Proposed Total Salary Total Difference Increase 7/1/07 Increases Ranges Central Services $68,134 $86,103 10% $94,713 $26,713 $5,635 - $6,156 $100,348 - $100,869 $32,214 - $32,435 Director Human Resources $59,340 $73,861 10% $81,247 $21,907 $4,834 - $5,281 $86,081 - $86,528 Director $26,741 - $27,188 Information $75,430 $88,666 5% $93,099 $17,669 $3,025 - $4,422 $96,124 - $97,521 $20,694 - $22,091 Technology Director Parks & Recreation $60,749 $72,938 5% $76,578 $15,829 $2,488 - $3,637 $79,066 - $80,215 $18,317 - $19,466 Director Library Director $52,213 $63,000 15% $72,450 $20,237 - - - *Planning/ $73,000 $82,371 10% $90,608 $17,608 $2,944 - $4,303 $93,552 - $94,911 $20,552 - $21,911 Inspection Director City Manager $89,307 $112,948 10% $124,242 $34,935 $4,037 - $5,901 $128,279 - $130,143 $38,972 - $40,836 Senior City $73,652 $86,809 25% $108,511 $34,859 $3,526 - $5,154 $112,037 - $113,665 $38,385 - $40,013 Administrator *Customer Service $49,900 $56,703 5% $59,538 $9,638 $1,934 - $2,828 $61,472 - $62,366 $11,572 - $12,466 Manager Police Resource $49,262 $62,451 - - - - - - EXHIBIT #13 Manager *Public Services $81,090 $100,635 10% $110,635 $29,545 $3,595 - $5,255 $114,230 - $115,890 $33,140 - $34,800 Special Council Meeting - 2008 Budget Hearings Manager (May 14, 15, 21, and 22, and June 2, 10, and 19, 2008) Page 1 of 2

A B C D E F G H (BxC) (D-A) (D+F) (G-A) Proposed Position 7/1/03 7/1/07 Percentage Proposed Difference Proposed Total Salary Total Difference Increase 7/1/07 Increases Ranges Public Works $49,979 $61,675 5% - - - - - Operations Manager *Public Utilities $100,00 $104,000 10% $114,400 $14,400 $3,718 - $5,434 $118,118 - $119,834 $18,118 - $19,834 Manager 0 *Water/Wastewater $44,281 $79,356 10% $87,291 $43,010 $2,836 - $4,146 $90,127 - $91,437 $45,846 - $47,156 Manager Engineering $53,672 $72,143 10% $79,357 $25,685 $1,983 - $3,174 $81,340 - $82, 531 $27,668 - $28,859 Services and System Operations Supervisor Line Crew $66,794 $76,829 10% $84,511 $17,717 $2,112 - $3,380 $86,623 - $87,891 $19,829 - $21,097 Superintendent City Assessor $54,999 $59,657 5% $62,639 $7,640 - - - *City Clerk $43,402 $59,692 5% $62,676 $19,274 $2,036 - $2,977 $64,712 - $65,653 $21,310 - $22,251 Chief Building $46,000 $52,651 30% $68,446 $22,446 - - - Inspector *Librarian II $43,810 $46,438 5% $48,759 $4,949 - - - * Salary as of 07/01/2006 equaled $73,000 * Two (2) Promotions * Promotion and Reorganization * 2007 Salary equaled $100,000 * Two (2) Promotions and a Position Upgrade * Promotion from Assistant City Clerk * Filled Vacancy FY07 C:\Documents and Settings\Mommy\My Documents\City\Minutes\Attachments and Exhibits\2008\2008 Budget Hearings\Proposed Pay Grade Positions & Changes 05-22-08.wpd Page 2 of 2

EXHIBIT #14 Special Council Meeting - 2008 Budget Hearings (May 14, 15, 21, and 22, and June 2, 10, and 19, 2008) EXHIBIT #14 Revenue Presentation Fiscal Year 2008­2009 Special Council Meeting - 2008 Budget Hearings June 10, 2008 (May 14, 15, 21, and 22, and June 2, 10, and 19, 2008)

General Fund Revenues

Is the Revenue needed now? • FY 2009 permit revenue covers only 60% (lowest in 5 years) of Planning & Inspections costs. • Tax revenue up $500,000 plus, cost of Police salaries up $800,000 alone. • Tax re‐assessment begins ‐ $400,000. • Possible decrease in State Revenue. • Cuts made to several capital projects – can not sustain. • Cuts also made to e‐government projects. • New computers have been cut from the budget – can sustain.

Is the Revenue needed now? • OPEB begins this year ‐ 2.5% of salaries • Full year of operations at the Pitts Center. • Full year of Sex Offender Officers. • Full year of Emergency Planning position. • Full year of expanded Ambulance coverage. • Health Insurance costs increased 8% city‐wide. • 4% increase for FOP bargaining unit. • 3.5% increase for IUE bargaining unit.

Total FY09 Costs for Positions Added in FY08 1 Inspector 65,036 2 Police Officers 138,868 1 Emergency Preparedness Coordinator 82,238 Pitts Center Staff (1 full‐time, 4 part‐time) 161,359 TOTAL $447,501

Business Licenses • Overall Increase 10% • Revenue Generated‐ $145,000 • Last Increased in 2004

Permits and Other Licenses • Revenue Generated = $219,720 • Last Increased ranges from 1993 ‐2004 • Revenues cover only 60% of Planning & Inspections – lowest level ever

Tax Revenue per 1¢ • One cent on the tax rate = $286,569 • Two cents on the tax rate = $573,138 • Three cents on the tax rate = $859,707

Total Revenue Increases Tax Revenue ‐ 3 cents 859,707 Business Licenses 145,000 Permits 219,720 Total $ 1,224,427

Water/Wastewater Revenues • Revenues continue to be flat for FY09. • Industrial base continues to erode. • Residential growth 1%.

Water/Wastewater • Major capital projects will require debt issuance – Water Quality Assurance – Inflow Infiltration – Water Tower – US Rte 13 Sanitary Sewer Interceptor • Rate study planned for FY2009. • It is projected that rate increases will be necessary beginning in FY2010.

New Plan Review Fee Proposed Water/Wastewater • Revenue from proposed fee ‐ $95,100 • Engineering estimates for costs of plan review – FY 2007 ‐ $105,215 – FY 2008 – $119,250 • Additional revenues will be used to offset the costs of the capital projects.

EXHIBIT #15 Special Council Meeting - 2008 Budget Hearings (May 14, 15, 21, and 22, and June 2, 10, and 19, 2008) EXHIBIT #15 Special Council Meeting - 2008 Budget Hearings (May 14, 15, 21, and 22, and June 2, 10, and 19, 2008) June 10, 2008 1

What is Pay-For-Performance (PFP)? Pay-For-Performance is a system for awarding pay increases to non-bargaining employees based on the following: • Employee performance in reaching goals and objectives and their performance in Core Competencies • Employee’s position in the Pay Plan (Example: below market, at market, above market) • Salary increases based on market studies 2

City Manager’s Recommendation Analysis of the Market Survey recommends 3.25% average market increase for Fiscal Year 2009. Here’s why... 3

Market Increase Recommendations • BLS 3.5% nationally • ICMA Survey & Ann. Report 1.77% for majority of ranges • BNA Labor Report 3.3% - average wage increase – 2006 • FOP Bargaining Unit 4% - for Fiscal Year 2009 • IUE/CWA Bargaining Unit 3.5% for Fiscal Year 2009 • IBEW Bargaining Unit 3.5% for Fiscal Year 2009 4

Pay-For-Performance • Last year Council did not adopt the 2.7% additional increase for below market employees to bring them into market range in 7 years. A 1% increase was used. • The same schedule is used this year. However, it is recommended that the 2.7% increase be considered. • Continued use of 1% will cause a trend to below market salary. • The estimated cost of a 2.7% increase will be $12,500. 5

Market Analysis for Projected Increases as of June 10, 2008 Currently there are 26 non-bargaining employees below market, 40 at market, and 17 in above market. Only one non-bargaining employees is above maximum. 6

Market analysis also proposes an increase in labor grade ranges by 3.25% • This is not added on top of the PFP increase. • It establishes the job ranges for new employment. • It determines whether current employees are ranked below market, at market, or above market. 7

FY 2004 - 2007 45 40 35 30 25 20 15 10 5 0 Below Market Above Max 2004 2005 2006 2007 8

PFP Scores Distribution FY 2004 - 2007 Satisfactory Good Score Commendable Score Outstanding Score 20-29 30-35 36-41 42-50 14 employees 60 employees 113 employees 32 employees 6.4% 27.4% 51.6% 14.6% 35 30 25 20 Occurnances 15 10 5 0 20 22 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 Note: Dotted lines indicate prior to 2006 scoring. Scores 9

Reclassification/Upgrades Proposed for Non-Bargaining Employees. • Eight requests for reclassifications/re-gradings and promotions of non-bargaining positions were reviewed. Seven were included in the budget. Amount Department Position Justification Budgeted Secretary II to Library Performing Administrative Assistant duties $2,605 Administrative Assistant Public Services GIS Coordinator to GIS Additional responsibilities as the function expands and $3,068 Admin Manager grows Weed & Seed Coordinator Public Services to Community Prevention Reclassified to fit actual duties being performed. Planning Manager $744 Public Services Planner I Creates a progressive career path for Planners N/A Planning Public Services Senior Planner Creates a progressive career path for Planners N/A Planning Public Services Planner to Planner II Creates a progressive career path for Planners $2,303 Planning Public Utilities Water Production Reclassified to fit actual duties being performed $3,338 Water Treatment Supervisor Re-grading 10

New Position Recommendations Amount Department Position Justification Budgeted Economic Main Street Coordination of City’s economic development $71,642 Development Manager efforts. Existing position from existing Main Street budget. Economic Marketing Coordination of City’s economic development $83,853 Development Professional efforts Economic Administrative Coordination of City’s economic development $61,853 Development Assistant efforts 11

IUE/CWA Bargaining Unit Amount Department Position Justification Budgeted Communications Police Re-grading 11 from a grade 17 to 18 $30,261 Operators Police Animal Control Officer Re-grade one from a grade 11 to 12 $1,909 Central Services Mechanic I to Supervisor Re-grade one from grade 15 to 19 $10,468 Courier to Central Central Services Re-grade one from grade 12 to 13 $1,747 Mailroom Clerk Central Services Storekeeper I Re-grade two from grade 12 to 13 $3,454 Central Services Storekeeper II Re-grade one from grade 14 to 15 $2,198 12

• It is recommended that we contract, in this fiscal year (FY08), to re-evaluate all non-bargaining positions to determine if job titles, market range positions, and salaries are correct. • Can be completed by the end of June. • $90,000 in contingency funds for possible corrections should be budgeted in the general fund. 13

EXHIBIT #16 Special Council Meeting - 2008 Budget Hearings (May 14, 15, 21, and 22, and June 2, 10, and 19, 2008) EXHIBIT #16 Special Council Meeting - 2008 Budget Hearings (May 14, 15, 21, and 22, and June 2, 10, and 19, 2008)

EXHIBIT #17 Special Council Meeting - 2008 Budget Hearings (May 14, 15, 21, and 22, and June 2, 10, and 19, 2008) How Revenue Would Be Used Total Cost Accumulative Cost Method of Payment Capital Asset Reserve 200,000 $200,000 Streets Program Increase/Contingency Funds 150,000 Streets Program Increase 190,000 Excess Balance Streets Program 80,000 $270,000 Excess Balance Concrete Program Increase 25,000 Excess Balance Concrete Program Increase 30,000 Excess Balance Capital Asset/State Fund Contingency 100,000 $55,000 Capital Asset/State Fund Contingency 100,000 State Fund Contingency/Captital Asset 155,000 $255,000 Fire Safety Equipment 9,500 Excess Balance Arts Council 3,805 Excess Balance GPS System 33,750 Excess Balance Librarian I 50,095 Excess Balance EXHIBIT #17 African American Festival 7,500 Excess Balance Economic Development 16,000 $120,650 Excess Balance Police Vehicle 80,000 $80,000 Excess Balance Special Council Meeting - 2008 Budget Hearings Total $525,650 (May 14, 15, 21, and 22, and June 2, 10, and 19, 2008)

Where It Comes From Amount What It Buys Amount Reduction in Salary Scale 50,000 Streets Program Increase 190,000 Silver Lake Management Project 50,000 Streets Program 80,000 Schutte Park Master Plan 25,000 Concrete Program Increase 25,000 Reduction in Street Program 51,000 Concrete Program Increase 30,000 One Ton Steam Roller/Leaf Vacuum 23,300 Fire Safety Equipment 9,500 Playground Equipment 30,000 Arts Council 3,805 Reduction in 20-30 Series By 1% 49,275 GPS System 33,750 Correction in Planning Commission Salaries 126,479 Librarian I 50,095 Decrease in Central Services Budget 1,000 African American Festival 7,500 Decrease in Facilities Management Budget 1,500 Economic Development 16,000 Decrease in Fleet Maintenance Budget 600 Police Vehicle 80,000 Reduction in additional 2.7% increase for 12,700 Below Market Employees Reduction in Water/Waste Water Cost of 55,000 Service Study General Fund Salary Reduction Savings 42,509 Water/Waste Water Salary Reduction Savings 13,233 Electric Fund Salary Reduction Savings 17,937 Total 549,533 525,650

Salary Increases Over Time and Budged Through FY'09 Proposed FY'04 Current Increase Budgeted Position Pay Grade FY'05 FY'06 FY'07 FY'08 Pay Grade Salary Salary Passed Upgrade 137 139 89,307 4.75 7.00 6.45 6.00 112,948 3.66* 10% City Manager 130 135 73,652 4.50 3.50 4.78 4.00 86,809 3.66% 25% Senior City Administrator 134 TBR 104,000 3.66% 10% Public Utilities Manager 132 134 68,134 4.98 7.00 6.22 5.91 86,103 3.66% 10% Central Services Director 130 132 59,340 5.00 9.14 7.20 6.50 73,861 42.94** 0% HR Director 134 TBR 81,090 4.75 4.00 5.58 7.9** 100,635 3.66% 10% Public Services Manager 123 124 43,404 4.50 3.50 16.17 9.46** 59,693 3.66% 5% City Clerk 131 133 73,000 12.8** 82,371 3.66% 10% City Planner/Inspections 123 124 54,999 59,657 3.50% 0% City Assessor 131 137 86,314 4.50 4.25 3.75 23.04** 95,118 2.50% 0% Finance Dir/Controller * City Manager also receives car/gas/food allowance ** Job Change Promotion

EXHIBIT #18 Special Council Meeting - 2008 Budget Hearings (May 14, 15, 21, and 22, and June 2, 10, and 19, 2008) Memorandum Office of the City Manager P.O. Box 475 Dover, DE 19903 Phone: (302) 736-7005 FAX: (302) 736-7002 E-mail: tdeprima@dover.de.us To: Mayor and Council From: Anthony J. DePrima, AICP City Manager Date: June 16, 2008 Subject: Reconsideration of Non-bargaining Salary Increases As you all know, I will not be able to attend the June 19 budget meeting. I am respectfully requesting that City Council consider an alternative to Councilman Slavin’s motion to approve across the board increases for non-bargaining employees. I appreciate Councilman Slavin’s effort to initiate movement on this issue, in a way that was fair to all employees. I completely understand his intent; however, I believe it causes some serious, unintended consequences. We have estimated the cost of the motion based on our interpretation (see attachment) to be $155,023. I am proposing a traditional Pay for Performance Schedule that is estimated to have approximately the same cost - $156,447. This is $72,560 less than projected in the original budget. The problem with the “across the board” motion is as follows: 1. Many of our employees have worked very hard to achieve their goals and perform their jobs well. Some have not. The approved motion gives both groups raises regardless of effort. This disappoints our best performers, and rewards our worst. Our employees started the year believing that evaluations count; let’s end it that way. 2. While the motions intent was to bring uniformity, it has had the unintended effect of dividing the non-bargain employees. Some will receive a 3.66% increase, while others will receive 3.50%, and in several cases this will occur within the same department. For example, the Sanitation Supervisor, who supervises 13 IUE employees, will receive 3.50 %. His supervisor, the Public Works Operations Manager, who supervises 3 non-bargaining supervisors, will receive 3.66%. I think this is divisive. -1-

3. I have attached a copy of the motion and our interpretation of that motion. As you will see, we have made some interpretations that can be understood differently by others. Some of these interpretations may have to be brought back to Council for further instruction. This can get complicated, and leaves the matter open. 4. We believe it was Councilman Slavin’s intent for the Police Chief and Police Major to receive a 4.00% increase, but a literal interpretation of the motion yields a different result. Since they both supervise non-bargaining employees, Police management is represented by the FOP, and the department is comprised of both FOP and IUE employees, their increase would be 3.66%. I think this leaves this matter open as well. The following PFP schedule yields approximately the same budget cost as the motion made by Councilman Slavin. The average increase is 3.31% PFP Score Adjustment Employee Employee Employee At Employee From To Above Above Market Market Below Market Maximum 0 19 0% 0% 0% 0% 20 29 0% 0% 0% 1.00% 30 35 2.50% 3.00% 3.50% 3.75% 36 41 2.75% 3.25% 3.75% 4.00% 42 50 3.00% 3.50% 4.00% 4.25% The advantages of utilizing this schedule: 1. The schedule rewards our best performers, and sends a clear message to those who are not performing. 2. The schedule unifies all employees under one system that employees are accustomed to. 3. There are no interpretation issues to resolve. 4. This gives an additional 0.25% increase to employees at entry level. This meets the adopted policy. I feel that it is my responsibility to inform City Council when I believe they are going down the wrong path, even when it makes us all uncomfortable. Now is that time. Again I want to thank Councilman Slavin for his efforts to move this matter along. Attachment ADJ/hf -2-

Mr. Slavin’s June 10 Motion for Non-Bargaining Pay Increases: Mr. Slavin amended the motion to say that non-bargaining employees would get a raise commensurate with whatever the bargaining unit is getting in the unit they supervise. Anyone who is not in a bargaining unit would get the average of what the bargaining units are getting. Interpretations of above motion: 1. How are we to interpret “the average of what the bargaining units are getting” as stated in the second paragraph? We are interpreting this to mean an average of the three bargaining units – 4% FOP, 3.5%, IUE- CWA and 3.5% IBEW. This averaged together equals 3.66%. Others have interpreted this differently. Some believe the average to be 3.75% - an average of 4% FOP and 3.5% IUE-CWA and IBEW. 2. How do we treat non-supervising, non-bargaining employees such as, Administrative Assistants, Records Clerk, confidential positions in Finance, IT positions such as LAN Analysts, and Planners? A literal reading of the above motion does not clearly answer this question. We believe that Mr. Slavin’s intent was to apply the second paragraph. These people should get the average of what bargaining units are getting – 3.66%. 3. How do we treat Supervisors in a department with no bargaining unit employees? Examples of these supervisors would be, City Clerk’s Office, IT, Finance, HR, City Manager’s Office. This is covered under the second paragraph and therefore these employees get the 3.66% 4. How do we treat a Supervisor who supervisors bargaining unit employees? Examples would be the Streets Department, Field Supervisor (supervises IUE), Line Superintendent (IBEW), Police 911 Supervisor (IUE). We interpret this under the first paragraph which means they would get 3.5%. -3-

5. How do we treat the Police Chief and the Major? We believe Councilman Slavin’s intent was that they would get a 4% increase like the FOP. This was used in the analysis. However, the Major supervises both FOP bargaining and IUE non bargaining supervisors so the 3.66% applies or maybe 3.75% because they only supervise two of the three bargaining units. The Chief supervises non-bargaining supervisors, so the 3.66% applies. This leaves this open to interpretation. 6. How do we treat a Supervisor who supervises non-bargaining employees and those employees who supervise bargaining employees in one unit? Examples of this would be the Public Services Manager who supervises only non-bargaining employees (Public Works Operations Manager, Chief Building Inspector, Fire Marshall). These employees supervise bargaining employees. We are unsure how to interpret this and seek your clarification on this issue. For the purpose of the attached analysis we used 3.66% -4-