Attachment

‘ EXHIBIT #1 Budget Hearings of May 10,11,16,17 and June 6, 7, 9, 2006 Projects 100 Percent Complete by June 30 Fund Number Total 75 General 27 Water 23 Electric 25 Projects 75 Percent Complete by June 30 Fund Number Total General Water Electric =A ONwW Projects 50 Percent Complete by June 30 Fund Number Total 3 General 1 Water 2 Electric ie} Projects 25 Percent Complete by June 30 Fund Number Total 4 General 0 Water 1 Electric 0 Projects 0 Percent Complete by June 30 Fund Number Total 10 General 2 Water 3 Electric 5

EXHIBIT #2 Budget Hearings of May 10,11,16,17 and June 6, 7, 9, 2006 Mayor’s Compensation Statistical Data Calculation Based on Consumer Price Index (U.S. Bureau of Labor Statistics) Nov 1997 CPI: 161.3 Mar 1998 CPI: 162.2 Nov 2005 CPI: 197.6 Mar 2006 CPI: 199.8 197.6/161.3 = 1.23 199.8/162.2 = 1.23 1.23 x $45,000 = $55,350 1.23 x $45,000 = $55,350 Calculation Based on Employment Cost Index (U.S. Bureau of Labor Statistics) Mar 1997 ECI = 134.1 Dec 1997 ECI = 75.0 Sep 2005 ECI = 179.4 Dec 2005 ECI = 100.2 *ECI Re-indexed Dec 2005 179.4/134,1 = 1.34 100.2/75.0 = 1.34 1.34 x $45,000 = $60,300 1.34 x $45,000 = $60,300 Comparison to average City of Dover employee compensation (City of Dover Combined Annual Financial Report) 1997 Total Salary & Wages: $12,514,869 1997 Number of Full-time Employees: 338 1997 Total Employees: 352 1997 Average Compensation/Full-time Employee: $12,514,869/338 = $37,026 1997 Average Compensation/Employee: $12,514,869/352 = $35,553 2004 Total Salary & Wages: $16,465,728 2004 Number of Full-time Employees: 356 2004 Number of Full-time Employees: 378 2094 Average Compensation/Full-time Employee: $16,465.728/356 = $46,252 2004 Average Compensation/Employee: $16.465,728/378 = $43,560 46,252/37,026 = 1,25 43,560/35,553 = 1.23 1.25 x $45,000 = $56,213 1.23 x $45,000 = $55,135

: of Annapolis MD (City of Annapolis Website & notices and City of Dover Website) Current Annapolis Budget: $62,210,780 Annapolis Population; 35,660 City of Annapolis Employees: 542 Annapolis Mayor’s Salary: $70,000 *Annapolis Mayor eligible for all benefits offered to other city employees Current Dover Budget: $101,143,471 (original FY05-06 budget) Dover Population: 34,500 (est.) City of Dover Employees (Full-time Equivalent): 377 Annapolis Mayor’s Salary/$1 million budget: $70,000/62.210780 = $1125 Annapolis Mayor’s Salary/1000 residents: $70,000/35.660 = $1963 Annapolis Mayor’s Salary/employee: $70,000 = $129 Comparable Dover Mayor’s Salary/$1 million budget: $1125 x 101.143471 = $113,786 Comparable Dover Mayor’s Salary/f000 residents: $1963 x 34.500 = $67,724 Comparable Dover Mayor’s Salary/employee: $129 x 377 = $48,633 Average: ($113,786 + $67,724 + $48,633)/3 = $76,714 Correction for difference in Cost of Living (Realtor.com Salary Calculator): ($76,714/119.3) x 100 = $64,303

Mayor’s Compensation Specific Proposal with Associated Cost |. Effective FY07 (July 1, 2006), make Mayor eligible for defined contribution retirement plan (401k). 2. Effective FY07 (July i, 2006), increase Mayor's salary to $50,000. 3. Effective FY08 (July 1, 2007), increase Mayor's salary to $55,000. 4, Effective summer 2007, require bi-annual review of Mayor’s salary. FY07 Salary FICA 401k (maximum) Total FYO7 FY08 Salary FICA 401k (maximum) Total FY08 FY07 Salary FICA 401k (maximum) Total FY07 FY08 Salary FICA 401k (maximum) Total FY08 Amount Diff fr/current % of Budget (FY06 Gen/Total) $50,000 $ 5,000 -016%/.0048% $ 3,850 $ 389 .0013%/,00038% $ 3,000 $ 3.000 .0099%/.0029% $56,850 $ 8,389 .028%/.008 1% $55,000 $10,000 .033%/.0096% $ 4,274 $ 777 -0026%/.00075% $3,300 $ 3,300 011%/.0032% $62,574 $14,077 046%/.014% Amount Diff fr/eurrent % of Budget (FY07 Gen/Total) $50,000 $ 5,000 .014%/,0038% $ 3,850 $ 389 .0011%/.00029% $ 3.000 $ 3,000 .0082%/.0023% $56,850 $ 8,389 .023%/.0064% $55,000 $10,000 .027%/.0076% $ 4,274 $ 777 002 1%/.00059% $ 3.300 $ 3.300 .0090%/.0025% $62,574 $14,077 .038%/.011%

Direct Monetary Value of Qualified Full-time Mayor (Excludes indirect/unidentifiable monetary value and intangible valuc) On-going Revenue Streams Corporate Franchise Fees: FY04 $ 559,260 FYOS $ 710.380 FY06 (to date) $314,040 Total (to date) $1,583,680 Annual Projection $ 720,000 Additional State of Delaware PILOT: FY06 $ 241,514 Annual Projection $ 241,514 Total Annual Projection $ 961,514 Autherized/Received Grants Homeland Defense: $ 213,133 ICD: $ 2.500 Total $ 215,633 Total FY06 Revenue: $1,177,147 Anticipated Future Grants Homeland Defense: $ 362,000 Police (JAG): $ 22.076 Total $ 384,076 Future Cost Avoidance Restrictive Legislation: $ 723,000 (Estimate in current $)

Degree of Involvement Job Class Evaluation-Mayor wa w Data Responsibility People Responsibility Assets Responsibility Experience Education Math Communication Judgment Complexity of Work Impact of Decisions Physical Demands Equipment Usage Unavoidable Hazards Safety of Others Total Points Proposed Labor Grade Labor Grade Range Labor Grade 128 $56,089-66,783 Labor Grade 129 $58,893-70,122 Labor Grade 133 $71,585-85,234 ow oO Z honyNuwrnowak~aHs FES Lowest of Both 7 7 7 7 7 7 6 5 6 6 5 4 7 7 7 7 7 7 7 7 4 3 3 2 4 2 a) 9 1577 1435 129 128 Mkt. Max. $66,784-77,478 $70,123-81,352 $85,235-98,884 $77,479-88,173 $81,353-92,582 $98,885-112,534

Sec. 4. Government vested in mayor and city council. The government of the said city and the exercise of all the powers conferred by this Charter (except as otherwise provided herein} shall be vested in a mayor and city council. (Amd. of 7-12-2005 (S.B. 126)) Sec. 9, Meetings of mayor and council--Generally. At 7:30 p.m. on the second Monday in May following a regular municipal election, the mayor and council shall meet at the usual place for holding council meetings and the newly elected officers shall assume the duties of office, being first duly sworn or affirmed to perform their duties with fidelity. Such meeting shall be called or known as the annual meeting. Thereafter, the council shall hold regular meetings at such times as may be prescribed by ordinance, but not less frequently than once each month. Special meetings may be called and held as prescribed by ordinance. All meetings of the council shall be open to the public except scheduled executive sessions. At the annual mecting held on the second Monday in May, the members of council shall elect one of their members to serve as council president, such term to be in effect until the next regularly scheduled annual meeting or until a successor is elected. The council president shal] serve as vice-mayor. Council president shall preside over regular and special council meetings. The mayor shali preside over the annua! meeting and quarterly town meetings, and at the annual meeting present a state of the city message and offer mayoral appointments for council confirmation. The mayor, upon recommendation from the council president, will present council appointments for council approval. In the event of absence of the council president, then the senior member of council in terms of length of service as a councilman shall assume the duties of the council president and shall be designated council president acting. In the event that two or more members of council have the same seniority in terms of length of service as a councilman, then the members of council shall vote and elect one of those as council president acting. Council president acting shall fulfill all of the duties and responsibilities of council president during his period of unavailability or absence. Sec. 10. Meetings of mayor and council--Procedure. Five of the members elected to the council shall constitute a quorum to do business, but a less number may adjourn from time to time and may compel the attendance of absent members in such manner and under such penalties as may be prescribed by ordinance. No ordinance, resolution, motion or order shall be valid unless it shall have (1) the affirmative vote of a majority of the members elected to the council, and (2) the written approval of the mayor, or the vice-mayor in those cases where the vice-mayor is authorized to act as mayor as provided in section 15 hereof, provided that in the absence of such approval by the mayor, or the vice-mayor as the case may be, the council may, after not less than seven days nor more than 35 days after the prior vote, pass or adopt the said ordinance, resolution, motion or order which did not receive the approval of the mayor, or the vice-mayor, by the affirmative vote of two-thirds of the members elected to council. Whenever the council shall adopt an ordinance, resolution, motion or order, it shall be the duty of the mayor, or the vice-mayor, to signify his/her approval or disapproval thereof in

writing to the clerk of the council within seven days thereafter. The clerk of the council shall forthwith notify the members of the council of such approval or disapproval. Motions to adjourn meetings of council and orders to compel the attendance of absent members shall not require the approval of the mayor or vice-mayor. A councilman may abstain from voting on a matter that he feels would involve the consideration of his own official conduct, on a matter in which he has a financial interest, in a matter in which he has a conflict of interest or in accordance with a policy adopted by council. The yeas and nays shall be taken upon the passage of every ordinance and resolution and entered together with the text of the ordinance or resolution upon the journal of the proceedings of the council. The journal shall be deemed conclusive evidence of the facts stated therein except in the case of fraud. (Amd. of 7-12-2005 (S.B. 126) Sec. 14. Duties of mayor. The mayor shall be the executive and chief official of the city. The mayor shall have the powers and perform the duties conferred and imposed by this Charter and ordinances of the city. The mayor shall preside at the annual meeting of the council and at all quarterly town meetings. The council president shall preside at all other mectings of the council. The mayor shall have no vote on council matters of any nature whatsoever. The mayor is an ex officio member of all committees, but shall have no vote. (Amd. of 7-12-2005 (S8.B. 126)) Sec. 53. Police: mayor to be conservator of peace, There shall be a city police force, the number thereof and their salaries shall be determined by the council, but they shall be chosen and appointed by the mayor. The mayor is hereby vested with all the powers of a conservator of the peace within the city limits. The mayor shall appoint a chief of police subject to removal at any time by the mayor in accordance with applicable laws. The members of the police force shall be subject to his/her direction and orders delivered through the proper chain of command and in accordance with applicable laws and ordinances. They shall preserve peace and order, and compel obedience within the city limits to the ordinances of the city and the laws of the state. They shall have such other duties as the council and the mayor shall prescribe by ordinance. Each member of the police force shall be vested with all the power and authority within the city limits and within one mile outside of said limits, (and, in the case of the pursuit of an offender, without limit) of a constable of Kent County. (Amd. of 7-12-2005 (S.B. 126)) Sec. 2-52. Special meetings. (a) When and where held. Special meetings of the mayor and city council shall be called by the mayor or the council president. Designation of the time and place of the special meetings shalt be delivered by verbal or written notice to each councilmember at least 24 hours prior to the meetings. (b) Waiver of notice. The notice of the special meeting may be waived by the councilmembers individually.

(Code 1968, § 2-3: Code 1981, § 2-67; Ord. of 5-24-1993) Sec. 2-221. Duties and responsibilities. The mayor shall have all of those duties and responsibilities set forth in sections 14 and 53 of the Charter, and as otherwise assigned in the Charter and this Code. In addition thereto, the mayor shall be available on a full-time basis to promote the economic and social interests of the city and the general welfare of its citizens by: (1) Interacting with private citizens, city employees, business people, and other major employers; (2) Interacting with civic and neighborhood associations; (3) Interacting with officials and representatives of other governments and lobbying said officials, as necessary, to promote the welfare of the city and its citizens; (4) Maintaining memberships and/or contacts with various organizations and committees whose purposes, services, or results significantly affect or could significantly affect the government of or the citizens of the city, (5) Representing the government of the city at various community functions; (6) Consulting with the council on policy issues and, from time to time, offering policy initiatives; (7) Consulting with the city manager on budgeting, policy and operational issues; (8) Representing the city, in consultation with the council and city manager, regarding major projects within or near the corporate boundaries of the city; (9) Making appointments to various commissions and committees as delineated in the city Charter and elsewhere in the city Code; (10} Taking such other decisions and actions, within the mayor's Charter and Code assigned authority, as necessary to promote the safety, health, and welfare of the citizens of the city. Note: In reference to interacting with city employees, this provision does not grant the authority or responsibility to the mayor to intercede in personne! matters which are the responsibility of council or council appointed staff members, unless otherwise granted by city Charter or Code. Furthermore, such interaction shall also be governed by the provisions of section 36 of article III of the city Charter. (Code 1981, § 2-91; Ord. of 4-28-1997; Ord. of 1-24-2005) Sec. 38-81. Authority to declare state of emergency. The mayor is hereby authorized, when he finds that the city, or any part thereof, is in imminent danger of suffering civil disturbance, disorder, riot or other occurrence which shall endanger the lives, safety, health or property of the public, to declare a state of emergency. (Code 1968, § 20-9; Ord. of 5-12-1975, § 2; Code 1981, § 6-31) Sec. 38-82. Emergency measures. (a) After declaring a state of emergency, the mayor may: (1) Assemblies. Prohibit or limit to ten or more the number of persons who assemble or gather in a group on public streets, public places or other open areas, either public or private.

(2) Inflammables. explosives. Prohibit the sale, transfer, possession or use of gasoline. kerosene or combustible, inflammable or explosive liquids or materials in containers of any kind. : (3) Curfew. Establish a curfew, and prohibit any person from being on the public streets, in public places or in any other public place during the hours declared by the mayor to be a period of curfew, provided this shall not include those persons who are caused to be in public places by reason of their employment or a private emergency involving health, safety or protection of property. (4) Streets; traffic. Halt or restrict access or egress, on foot or by vehicles, upon public streets to or from the city or any part thereof, and to halt or restrict the movement of trains, automobiles, buses, trucks or other vehicles into, within or from the city. (5) Alcoholic beverages. Require the closing of taverns and bars, and prohibit the sale or service of alcoholic beverages in any tavern, bar, hotel, restaurant, club or other establishment. (6) Firearms. Prohibit the possession of firearms or any other deadly weapon by a person in a place other than that person's place of residence or business, provided that the prohibition shall not apply to members of the armed forces of the United States of America, state national guard, or any law enforcement officer. (7) Other regulations. Issue such other regulations as are deemed necessary. (b} The mayor may do ail acts necessary to enforce such orders. (Code 1968, § 20-9; Ord. of 5-12-1975, § 2; Code 1981, § 6-32) Sec. 38-83. Duration of state of emergency. The state of emergency declared by the mayor shall exist for a period not to exceed 61 days. The mayor may extend the state of emergency for additional periods of 61 days, and the mayor may terminate the state of emergency, or modify its provisions prior to the time set forth in his declaration. (Code 1968, § 20-10; Ord. of 5-12-1975, § 2; Code 1981, § 6-33 Sec. 38-84. Violations; penalties. Any person who violates any prohibition established by a declaration of a state of emergency pursuant to this division shall be punished as provided in section 1-17. (Code 1968, § 20-11; Ord. of 5-12-1975, § 2; Code 1981, § 6-34)

Clear Day Page 1 of | Speed, Stephen R. From: Jackson, Cheryl Sent: Monday, January 30, 2006 1:13 PM To: Administrative Services; Central Services; City Clerks Office; City Managers Office; Elect Admin; Finance Department; Fire Department Staff; Human Resources Department; Information Technologies; Parks and Recreation: Planning and Inspections Department; Public Works; Tax Assesors Department Subject: In-House Job Posting In-House Posting POSITION: Librarian I (Head of Adult Services) SALARY RANGE: $37,963 - $45,555 (40 hours per week) JOB_SUMMARY: The essential function of the position within the organization is to manage the library department of responsibility. The position is responsible for staff supervision, planning, training, policy, procedures, collection development, customer service, and reporting. This position supervises nine employees, including two with ALA accredited MLS degrees, and manages all adult reference, readers’ advisory, and circulation services. Assists with collection development, bibliographic - instruction, staff training, and other duties as assigned. The successful candidate will be a tactful, customer service-oriented professional. As a member of the library's management team, the person in this position will be responsible for assisting with the creation and implementation of library policies and procedures. Some evening and weekend hours are required. This position reports to the Library Director. JOB REQUIREMENTS: — Requires ALA accredited MLS and three to five years of library experience, , preferably with two years of supervisory experience. TO APPLY: Submit a City of Dover emptoyment application to the Human Resources Department by 5:00 P.M. February 08, 2006. IN AN EFFORT TO DETERMINE IF THERE ARE QUALIFIED AND INTERESTED INTERNAL CANDIDATES, THIS POSITION HAS BEEN POSTED IN-HOUSE ONLY. THE CITY OF DOVER RESERVES THE RIGHT TO DO AN EXTERNAL POSTING SHOULD IT BE NECESSARY. 5/10/2006

EXHIBIT #3 Budget Hearings of May 10,11,16,17 and June 6, 7, 9, 2006 Revenue Requirements, Cost of Service, and Rate Adjustments for the Electric Utility Presented to the City of Dover, Delaware June 6, 2006 ® Background Information Financial Planning Net Margins / Cash Flow Cost of Service Rate Design Renewable and Green Energy Discussion S

eas Need for the Rate Stud e Last Study in 2003 ~ Minor Structural Changes e Rates Revised 7/1/2005 —- Combined Several Rate Classes - Customer Charge Adjustments e Purchased Power Costs Increasing - Blended Energy Rate of $84/MWh — Current Cost Approximately $55/MWh e Voluntary Renewable Energy Rate e Mandatory State Green Energy Charge @ MeDonne SENGL tw9e Customer Growth 1 to 2 percent Sales Growth 2.5 percent Expenses Generally Increasing 3.5 percent Energy Purchases Increasing 2.5 percent Price for Purchases Estimated at $84/MWh Cost and Revenue for Self Generation Equal Utilize Rate Stabilization Account Other Reserves Utilized No Capital Expenditures for Generation Included Debt Issuance of $20 Million in 2008 Eliminate Seasonal Rates and Winter Block @

Issue Revenue Adequacy Revenue Responsibility Revenue Recovery e Review and Summarize Historical Information e Revenue Forecast — Customers — Sales — Revenues from Sales and Other Sources ¢ Expenditure Forecast — Operation & Maintenance including Power Supply — Capital Requirements — Debt Service

Financial Planning a « Review Results * Determine Level of Required Revenue Adjustment ¢ Develop Financial Plan Large Customers Fg Primary DO Madium Commerciat / Reactive Meter OMedium Commerciat mSmall Commercial

Power Cost Adjustment Revenue Large Customers Primary O Medium Commercial / Reactive Mater Medium Commercial | Smail Commercial Residential

surns ® McDonnell Since 1a9g Revenue Requirement Operating Revenue - Exisiting Ratos Operating Revenue - Power Cost Adjustment Less: Total Operating Expansea Operating Margin 2007 200g amo watt ($1,000) ($1,000) ($1,000) (81.000) ($1,000) anos ($1,000) 57,158 59,087 TAL] 62,080 63,841 65,233 (63,546) (87,602) (17,084) (17,782) (19,939} (20,802) $22 Million Deficit in 2011

* Reviewed Plan Results with Staff ¢ Proposed Annuai Revenue Increases * Key Considerations — Utilize Rate Stabilization Account ~ Use Other Reserves * Annual Revenue Increase ~July 2006 38 percent —July 2007 8 percent —July 2009 4 percent — July 2010 1 percent — July 2011 1 percent

‘Operating Revenue - Power Cost Adjustment ‘Operating Revenue - Other ing Revenue - Tax Total Revenue - With Adjustment Less: Total Operating Expenses Operating Margin i 708 mt ull ($1,000) ($1,000) ($1,000) ($1,000) ($1,000) ($1,000) 57,158 50,007 : 38% RAT 71g 3133 2402 1,246 1,778 68686 85,825 (34,442) (60,432) 14203 «6,308 83.002 94,189 % * 6,643 3648 2am 2 6083.08 94,884 100,410 (83,548) (87,642) 14,318 12,808 Cost-of-Service Analysis * Key Question — What is the Responsibility for Costs to Provide Service for Each Customer Class? 96,389 98,044 % % bad 99 2402 2,492 3,288. 3410 103,134 105,835 (90.228 12,008 ) (82,858) 12,980

System Units of Service Allocate Operating and Capital Costs Develop Unit Costs of Service Assign Costs to Customer Classes Compare Costs to Serve with Revenues Need to Adjust in Next 6 to 12 Months — Demand Charge — Cash Flow — Energy Purchases — DAFB @ Cost-of-Service Analysis. _ 1.345 732] 10,373,513 | 18,480. 309.083.071 | Ste.s50.224| $2,000,000 | $046,756 | $1.504 9.00 9.

ee ee ee ee or San thn) 787,015.000 WA | 80.019,088 | 48.820.338] 19.030.404 son.sa.e7t bared are 4,287,283 [$1,083,306 314 ara Conwtaton Pani (kW) 171.000 st! a0 bebelrers naire awn 00 baer ac ees ae a en Rae bed Sea 478 2 a7 ae az 390 54,516,485 | $1.852.386{ $017.301 Gen ove era Ree 1,168 240517] 9.828] 448,189 sarin $1,302 Ps aaa $2,080,048 bard beer 132 5 154. 95% Ta2a%| 3.78% 42 [Customer Service: Number of Customers Total Cost —_a « Rates Were Developed To: — Generate Adequate Revenues — Reflect Costs of Providing Service — Meet City’s Policies, Objectives, and State Mandates — Eliminate Seasonal Rate Differentials — Incorporate Direction Provided — Consolidate Rate Classes

Rate Design Analysis * Need to Address Revenue Shortfalls * Rate Implementation Strategy — Case 1 Reflects Cost of Service — Case 2 Across the Board Recovery — Case 3 Cost Recovery with Industrial Customer Sensitivity ® BLENDED PROPOSED TOTAL ENERGY ENERGY RATE RATE [1] RATE INCREASE ($kWh) (S/kWh) Residentiai 0.0902 0.1146 Small Commercial 0.0969 0.1114 Medium Commercial 0.0489 0.0724 Primary 9.0450 0.0810 Dover Air Force Base [2} Kraft 0.0399 0.0838 Proctor & Gamble G.0399 0.0838 Tilcon Primary 0.0450 0.0743 Voluntary Renewable Energy Rate 0.0018 Renewable Energy Charge 0.000178 [t] Blended Energy Rate is based on Summer/Winter Average Energy Usage. [2] Additional required revenue for Dover AFB to be recovered through the Purchase Power Fuel Adjustment Rate, estimated at $0.0485/kWh. [3] Playtex Class Incorporated in Primary Rate Class.

BLENOED PROPOSED TOTAL ENERGY ENERGY RATE RATE CLASS RATE [1] RATE INCREASE (SkWh) (Siwy z Residential 0.0902 0.1283 Small Commercial 0.0869 0.1337 Medium Commerciat 9.0489 0.0675 Primary 0.0450 0.0621 Dover Air Force Base [2] Kraft 0,0399 0.0551 Proctor & Gamble 0.0399 0.0551 Tilcon Primary 0.0450 0.0621 Voluntary Renewable Energy Rate 0.0018 Renewable Energy Charge 0.000178 BRSREREES [1] Blanded Energy Rate is based on Summer/Winter Average Energy Usage. {2] Additional required revenue for Dover AFB to be recovered through the Purchase Power Fuel Adjustment Rate, estimated at $0.0485/kWh, [3] Playtex Class Incorporated in Primary Rate Class. |_Rate Design Anal sis~Case3 | BLENDED PROPOSED TOTAL ENERGY ENERGY RATE RATE CLASS RATE [1] RATE INCREASE (Swh) (S/Wh) (%) Residential 0.0902 0.1146 24 Smal! Commercial 0.0969 0.1163 419 Medium Commercial 0.0489 0.0743 32 Primary 0.0450 0.0815 60 Dover Air Force Base [2] 73, Kraft 0.0390 0.0738 87 Proctor & Gamble 0.0399 0.0738 89 Tilcon Primary 0.0450 0.0765 “4 Voluntary Renewable Energy Rate 0.0018 Renewable Energy Charge 0.000178 {t] Blended Energy Rate Is based on Summer/Winter Average Energy Usage. [2] Additional required revenue for Daver AFB to be recovered through the Purchase Power Fuel Adjustment Rate, estimated at $0.0485/kWh. [3] Playtex Class Incorporated in Primary Rata Class.

Burns &r McDonnell [sistas | SINCE 1898 Large Insurance Company Primary 10,287.00 | 13,692.60] 11,254.58 5,804.20 8,647.00 | _7,191.70 | Burns &y ——4S i McDonnell WNCE Taye | anlaheneee Automobile Dealership Primary [| Case2 [| Current_| Case _| 17,095.98 fa [ Jano6 | 8807.20] 13,102.00 | 10,607.20 FAI 13

Large Department Store Medium Commercial with Reactive Metering Jus 17,473.29 | _ 19,491.31 [18,567.17 Baa 10,835.82 | 14,299.69 | 13,571.20 Buea: Drugstore Medium Commercial with Reactive Metering | Juros [3,311.53 | 3,769.76 | 3,563.27 Ga | Janos | 2,015.19] 3,833.95] 3,620.70 14

Office Small Commercial 3-Phase With No Demand [| Current | Case1 | | Ju-os | 259.20 | 260.08 | 309.14 | 188.72| 20661 Manufacturing Plant Transmission [| Current { Casei_ | Case2 | 158,902.34 | 110,858.54 Bik 84,765.01 | 138,645.54 | 95,800.04 ha

Home Improvement Store Medium Commercial with Reactive Metering |_Jul-os | 16,633.35 [19,694.61 | 17,750.67 14,853.70 | 14,085.38 Burns & Mel Doctor's Office Small Commercial 3-Phase with No Demand |__| Current_[ Case1_| Case2_ ee | __ at | 2029 | __21 2 16

Restaurant Small Commercial 3-Phase with No Demand | Current | Case1 | 371.53 372.82 | 258.31] 283.36 | Large Restaurant Medium Commercial with Reactive Metering [| Current_| Case1 | Case2 6,817.82 7,615.60 | 7,250.26 fas 4,618.19 6,098.19 | 5,804.19 §

Church Small Commercial [|__| Current_| Case1 _ | | vuros [299.26] 300.32 | 353.69 | | Jano6 [256.38 270.18] 323.21 fs Typical Residential Customer Residential [|Current [Case _ [Winter | 10260[ 11960] 133.30 [Summer[ 10700. | ——s 18

Residential Customer Residential | Ju-os [132.29] 159.25 177.69 § 19.44] 245.43] 274.17 | Senior Citizen Residential 19

Residential Rates Cost Per kWh ewes 0.093800} Over 500 - .08780 Case 1 0.11460 Case 3 0.1146 ee, Case 2 0.128300} Po Delmarva 0.13921 New Castle 0.14000 lewark 0.14312 Over 500 - .13082 fe Seaford 0138160; Cid [| 0.146970] Cd Clayton 0154600; Middletown 0.169705] s—<Cs—s*™Y [Smyna__| o1e0a0o0, —S—=~«Y Revenue Requirements, Cost of Service and Rate Adjustments for the Electric Utility Discussion and Questions

EXHIBIT #4 Budget Hearings of May 10, 11, 16, 17 and June 6, 7, 9, 2006 Changes to Expenses FY 2006 and FY 2007 FY 2006 FY 2007 Original Revised Change Original Revised Change General Fund City Council Changed in budget review 122,618 119,218 (3.400) Tax Assessor Added staff and supplies 173,956 273,777 99,821 Fire Deleted buitding addition planning -$25,000 1,326,787 1,299,787 (27,000) Reduced fireman's pension contrib - $2,000 Library Overtime added 1,082,477 1,087,627 5,150 Recreation John W. Pitts Recreation Ctr 690,675 815,675 125,000 Police Reduced electricity 11,721,667 11,708,967 (12,700) Information Tech Other Equip. Purch - GIS $20,000 1,037,008 941,400 (95,608) Other Equip. Purch - Network Upgrade $42,608 Other Equip. Purch -Dept query data ext. $33,000 Facilities Mgmt Moved VOIP from Central Svcs. 860,166 990,166 130,000 Moved VOIP from Central Svcs -$340,000 952,610 1,272,610 320,000 Reduced Sp Needs Study - $20,000 Central Services Moved VOIP to Facilities Mgmt 844,792 714,792 (130,000) Moved VOIP to Facilities Mgmt - $320,000 1,120,982 759,832 (361,150) Electricity reduced $10,150 Gem Car removed $21,000 Construction Purchase - Pear St Warehse -(-$10,000) Mayor Changed in budget review 123,087 114,661 (8,426) Pension Transfer ta Pension Unfunded Liability - 250,000 250,000 Capital Asset Reserve Transfer to Capital Asset Reserve 150,000 250,000 100,000 Library Reserve Transfer to Library Reserve 333,500 333,500

Water/Wastewater Water Water Treatment Intrafund Svc Fee Pension Capitat Asset Reserve Wastewater IRE FY 2006 and FY 2007 Original Reduced Electricity 830,178 Reduced Electricity 720,598 Reduced from revisions 1,105,937 Transfer to Pension Unfunded Liability Transfer to Capital Asset Reserve Construction - Puncheon Run Pump Station Motor Control Replacement 2,435,189 FY 2006 Revised 755,361 711,415 1,104,507 2,287,399 Change (74.817) (9,183) (4,430) (147,790) Criginai 832,127 1,209,385 100,000 1,085,925 EXHIBIT #5 Budget Hearings of May 10, 11, 16, 17 and June 6, 7, 9, 2006 Changes to Expenses FY 2007 Revised 796,627 1,186,119 50,000 300,000 1,233,715, Change (35,500) (23,266) 50,000 200,000 147,790

Electric Electric Purchased Power Electric T&D Electric Engincering Electric Admin intrafund Svc Fee Debt Service Pension Rate Stabilization Res T&D IRE Engineering I&E Increased Power charges Contractual Services Tree Trimming Computer Hardware reduced $1,500 Changes to Expenses FY 2006 and FY 2007 Original 3,127,580 Contractual Services Tree Trimming $84,485 Training and Conference to 2% - $5,000 Reimburse PW inspectors for inspections of conduit - $10,000 Traffic Signal - $2,000 Electricity - $500 Office Supplies - $750 Photographic - $100 Computer Software - $150 Subscriptions and Dues - $2,015 Electricity - $3,600 Contractual Services - $197,000 Reduced from revisions Bond Reserve Balance Adjustment Transfer to Pension Unfunded Liability Transfer to Rate Stabilization Account Remove Forklift -§44,000 Error in summary $4,000 Mayfair to Mid City 69 KV line transfer to 07 $ 570,055 3.941233 2,640,257 2,306,483 69 KV Feeders 3&4 deferment of land purchase - $176,173 Mayfair to Mid City 69 KV line transfer to 07 $ 570,055 69 KV Feeders 3&4 deferment of land purchase - $176,173 Defer Other Equipment Purchase - Outage Reporting $44,450 Reduce Dist Upgrades $100,000 Defer Dist Upgrades Frazier Sub - $60,000 Defer Dist Upgrades Denney's Road Upgrade - $131,720 Defer Substations - West Dover $10,000 FY 2006 Revised Change 3,052,780 (74,800) 3,874,543 (66,690) 2,200,257 (440,000) 1,560,255 (746,228) Original 66,085,008 3,410,622 2,057,021 765,937 4,080,104 2,589,048 1,704,654 4,747,666 EXHIBIT #6 Budget Hearings of May 10, 11, 16, 17 and June 6, 7, 9, 2006 FY 2007 Revised 67,329,000 3,324,637 2,039,521 562,322 3.839,530 2,149,048 100,000 500,G00 1,656,654 5,147,724 Change 1,243,992 (85,985) (17,500) (203,615) (240,574) (440,000) 100,000 500,000 (48,000) 400,058

Fund General Water/Wastewater Water Wastewater | & E Electric Revenue Electric | & E Total Revenue Increase EXHIBIT #7 Budget Hearings of May 10, 11, 16, 17 and June 6, 7, 9, 2006 Description Business Licenses Permits and Other Licenses Civil Traffic Penalties Parkland Reserve Interest Earnings Property Taxes Transfer Tax Civil Traffic Penalties Intrafund Rect Water/Waste Intrafund Rect Electric Water Fees Wastewater Fees Wastewater Adj Fees Water Tank Space Leasing Miscellaneous Service Fee interest Earnings Interest Earnings Sales to Customers Interest Earnings interest Earnings Revenue Revisions FY 2006 and FY 2007 FY 2006 Original 1,310,000 975,500 730,515 1,108,937 3,941,233 4,166,162 2,583,132 3,717,296 303,000 98,750 FY 2006 Revised 1,318,000 1,118,500 902,000 125,000 1,104,507 3,874,543 4,316,000 2,745,000 3,760,000 327,094 104,750 FY 2006 Change 8,000 143,000 171,485 125,000 (1,430) (66,690) 379,365 149,838 161,868 42,704 24,094 6,000 384,504 FY 2007 Original 226,285 8,778,170 2,750,000 850,000 1,208,385 4,080,104 70,274 78,681,256 311,135 72,951 FY 2007 Revised 290,000 9,148,680 2,900,000 950,000 1.186.179 3,839,530 78,000 20,000 81,578,240 420,000 214,000 FY 2007 Change 63,715 370,510 150,000 100,000 (23,266) (240,574) 420,385 7,726 7,726 20,000 20,000 2,896,984 108,865 3,005,849 141,049 141,049 Totai Change 799,750 392,230 20,000 3,005,849 141,049 4,358,878