2005 CHARTER REVIEW COMMITTEE

The 2005 Charter Review Committee met on April 13, 2006, at 7:00 p.m. with Chairman Leary presiding. Members present were Mrs. Merritt, Mrs. Greenwood, Mr. Scheller, Mrs. Malone, and Dr. Miller. Mr. Jones and Mr. Christiansen were absent. Councilman Ruane, Mrs. Mitchell, Mr. DePrima, and Mrs. McDowell were also present.

AGENDA ADDITIONS/DELETIONS

Mrs. Malone moved for approval of the agenda, seconded by Mr. Scheller and unanimously carried.

CHARTER REVIEW - ARTICLE IV - SEC. 50 - DEBT LIMIT

During their Regular Meeting of March 27, 2006, Council referred Discussion - Increase of Bond Limit to the 2005 Charter Review Committee for their review and recommendation, as recommended by the Legislative, Finance, and Administration Committee. During the 2005 Charter Review Committee meeting of April 13, 2006, Mrs. Mitchell, Finance Director provided a presentation on Debt Limit and Debt Management Policy (Attachment #1).

With reference to Section 50(d), which states “Except for bonds issued pursuant to subsection (c) hereof, all bonds issued under the provisions of subsection (b) shall first be approved by a referendum vote of the qualified voters (as herein defined) of the City of Dover.”, members felt that it was important to retain the citizen participation provided by the referendum requirement.

Dr. Miller moved to retain the referendum requirement in some form, seconded by Mrs. Malone and unanimously carried.

After review and discussion, the committee proposed amendments to the City Charter, as follows:

Mrs. Malone moved to amend Section 50(c)(i) to read “To finance public storm sewers, streets and appurtenances provided that no more than 1/4 of 1% of total assessed value of real property $1,000,000.00 of aggregate principal amount of bonds may be issued at any one time pursuant to this clause (i) and any new bonds issued pursuant of this clause (i) may not cause the total aggregate principal amount of bonds outstanding at any one time pursuant to this clause (i) to exceed one percent of the total taxable assessment for a general tax at the time such new bonds are issued; and”. The motion was seconded by Dr. Miller and carried with three (3) yes, one (1) no (Mrs. Greenwood), one (1) abstention (Mrs. Merritt) (Chairman votes only in case of a tie).

Mrs. Merritt moved to establish a debt management policy, to be reviewed every three (3) years. The motion was seconded by Mrs. Malone and carried with Mrs. Greenwood voting no.

Dr. Miller moved to amend Section 50(b), second paragraph, to read “The aggregate of the amounts so borrowed together with all other bonded indebtedness for which the full faith and credit of the City of Dover has been pledged shall not at any time exceed a sum equal to 25 5 percent of the total assessed value of real property situate within the bounds of the City of Dover as such boundaries shall from time to time appear. The motion was seconded by Mrs. Malone and unanimously carried.

Mrs. Merritt moved for adjournment, seconded by Mrs. Malone and unanimously carried.

Meeting Adjourned at 8:49 P.M.

Respectfully submitted,

Thomas J. Leary

                                                                                           Chairman

TJL/tm

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