SPECIAL COUNCIL MEETING

A Special Council Meeting was held on May 28, 2003 at 5:00 p.m. with Council President McGlumphy presiding. Members of Council present were Mr. Carey, Mr. Pitts, Mrs. Williams, Mr. Truitt, Mr. Ritter, Mr. Speed, Mr. Salters, and Mr. Ruane.

Council staff members present were Mrs. Mitchell, Mr. DePrima, Mrs. Tieman (Administrative Services Director), and Mrs. McDowell. Council Committee Members present were Mr. Farling (Utility Committee) and Mr. Gorman (Legislative and Finance Committee).

AGENDA ADDITIONS/DELETIONS

Mr. Salters moved for approval of the agenda, seconded by Mr. Speed and unanimously carried.

PRESENTATION OF DRAFT 2003/2004 CITY BUDGET

Mr. DePrima gave a Power Point Presentation and briefed members on the Fiscal Year 2003/2004 City of Dover’s Draft Operating Budget (Exhibit #1), stating that it includes total expenditures in the amount of $89.8 million (excluding inter-fund transfers and current year balances), of which $16.4 million is for capital items, including $723,060 for vehicular purchases. The Budget also includes the goals identified in the City’s Strategic Organization Plan. Mr. DePrima noted that, in order to stay within budgetary constraints, $260,050 in projects were deferred. He stated that compliance with the new GASB 34 accounting requirements are included in the fund allocations.

The Fiscal Year 2003/2004 Budget includes no property tax increase, no trash fee increase, permit and license fee increases to bring them into alignment with other comparable communities, no water/wastewater rate increases, a purchased power adjustment increase necessary to offset wholesale power cost increase, no increase in basic electric rates, and four additional police officers while keeping overall staffing levels below fiscal year 2002/2003. The City’s basic municipal services are provided through the General Fund, Electric Revenue Fund, and Water/Wastewater Fund.

The General Fund includes City departments that provide traditional municipal services but which do not generate sufficient fee-for-service revenues to be self-supporting and are, therefore, financed principally by various tax liens and nonspecific fund transfers. Those services include police, fire, library, parks, beautification, recreation, street cleaning, leaf collection, snow removal, trash pick-up and disposal, planning and zoning, and certain development projects.

Beginning in fiscal year 2004, all previously classified Intergovernmental Service Fund divisions except Construction (classified as a Water/Wastewater Division) were moved to the General Fund and the Intergovernmental Service Fund was eliminated. The General Fund proposed 2003/2004 Operating Budget totals $25.3 million, representing a 22.4 percent increase from the fiscal year 2003 revised plan. Most of the increase comes from the $4.9 million additional expenses of the newly classified divisions. Other increases can be attributed to additional costs in pension, health care, and workers compensation rates.

The Water/Wastewater Fund was established to provide production and distribution of potable water and the transmission and treatment of wastewater. The proposed 2003/2004 Operating Budget totals $10.2 million. In fiscal year 2004, reserves in the amount of $160,000 are proposed for the Capital Asset Reserve account for the replacement and expansion of the City’s long-term assets. Beginning in fiscal year 2004, a Post-Retirement Benefits Reserve is established to provide funding for retirees’ benefits and $100,000 is budgeted for this purpose.

The Electric Fund provides financing for electric energy to the greater Dover community. The proposed Operating Budget totals $59.9 million, representing a 1.03 percent increase from fiscal year 2003. Revenues project an increase in the Purchase Power Adjustment Clause, resulting in in approximately $1.6 million in revenue.

DISCUSSION - REVIEW OF 2003/2004 CITY BUDGET

Members began reviewing the 2003/2004 City Budget.

General Fund

Members discussed with staff and the budget team questions they had regarding the proposed budget.

Mrs. Williams moved to recess the budget review to be continued May 29, 2003 at 5:00 p.m. and to adjourn into executive session to discuss legal matters, seconded by Mr. Ritter and unanimously carried.

Members adjourned into executive session at 7:04 p.m.

Mr. Ruane moved to reconvene, seconded by Mr. Carey and unanimously carried.

SALARY ADJUSTMENT - MR. JEROME COOPER, CITY ASSESSOR

Mrs. Williams moved that Mr. Jerome Cooper, City Assessor, be provided a corrective bonus in the amount of $2,000, effective today, retroactive to March 1, 2001. The motion was seconded by Mr. Carey and carried by a unanimous roll call vote.

Mr. Ruane moved that Mr. Jerome Cooper be provided a new salary, $2,000 in addition to his existing salary, to become effective May 28, 2003, seconded by Mr. Carey and carried by a unanimous roll call vote.

Mr. Speed moved for adjournment, seconded by Mr. Carey and unanimously carried.

Meeting Reconvened at 5:00 P.M. - May 29, 2003 (Mrs. Williams absent).

DISCUSSION - REVIEW OF THE 2003/2004 CITY BUDGET - GENERAL FUND

Members continued their review and discussed with staff and the budget team the proposed budget.

Meeting Recessed at 6:50 P.M.

The continuation of the meeting was scheduled for June 3, 2003 at 5:00 p.m.

                                                                                    TRACI A. McDOWELL

                                                                                    ASSISTANT CITY CLERK

All orders, ordinances, and resolutions adopted by City Council during their Special Meeting of May 28, 2003 (continued through May 29, 2003), are hereby approved.

                                                                                    JAMES L. HUTCHISON

                                                                                    MAYOR

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S:ClerksOfficeAgendas&MinutesCouncil-Minutes20035-28-05-29-2003.wpd

Exhibit Attached to Original Minutes and File Copy

Exhibit #1 - Power Point Presentation Document