COUNCIL COMMITTEES

The Council Committees Meeting was held on January 27, 2003, at 6:00 p.m., with Council President Carey presiding. Members of Council present were Mr. Ritter, Mr. Pitts, Mrs. Williams, Mr. Truitt, Mr. McGlumphy, Mr. Speed, Mr. Salters, Mr. Ruane, and Mayor Hutchison.

AGENDA ADDITIONS/DELETIONS

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

LEGISLATIVE AND FINANCE COMMITTEE

The Legislative and Finance Committee met with Mr. Salters presiding. Members present were Mr. McGlumphy, Mrs. Williams, and Mr. Shelton. Mrs. Street was absent.

Mr. Salters moved that all Council Members serve as a Committee of the Whole, seconded by Mr. Speed and unanimously carried.

Comprehensive Annual Financial Report - Fiscal Year 2002

In accordance with Section 46 of the City Charter, the City's financial books are audited by independent auditors each year. The Finance Director/Treasurer, Mrs. Mitchell, submitted the Comprehensive Annual Financial Report (CAFR) for Fiscal Year Ended June 30, 2002. It was noted that all financial transactions were audited by the selected C.P.A. firm of Faw Casson & Company and that the auditors have given the City of Dover a clean (unqualified) opinion. The City has received the Award of Excellence in Financial Reporting from the Governmental Finance Officers Association of the United States and Canada (GFOA) for the last 17 years.

Mr. Speed, referring to page 10, Exhibit 4, indicated that the prior year’s ending balance should be the current year’s beginning balance. Mrs. Mitchell concurred and stated that she would look into the matter.

Mr. Ruane, referring to page 47, Note 10 - Property Taxes, requested that future reports more accurately reflect the amount of delinquent property taxes.

Referring to page 119, Mr. Ruane suggested that Caesar Rodney School taxes also be included to reflect the overlapping taxes of Dover residents living in the Caesar Rodney School District.

Mrs. Williams moved to recommend acceptance of the Comprehensive Annual Financial Report for Fiscal Year Ended June 30, 2002, seconded by Mr. McGlumphy and unanimously carried.

Revenue Manual Review - Revenue Indicators

As requested during the Committee Meeting of December 9, 2002, members were provided background data used to develop revenue indicators, along with a more detailed explanation of the purpose and justification of the indicators. Mr. DePrima, City Manager, emphasized that while the indicators are included in the Revenue Manual, they do not represent a mechanism solely for increasing revenues. He noted that the indicators are intended to be a mechanism for examining the relationship between revenues and expenses and should be used as a budgeting tool.

Responding to Mr. DePrima, Mr. Speed stated that if he wanted to establish internal guidelines as tools for his own use, the Council did not need to officially endorse those revenue indicators. If Council voted on it, it was his feeling that it would then become more of a policy than a guideline.

Mr. Ruane moved to defer action until such time as there is a readiness among members to review the revenue indicators, seconded by Mr. Ritter.

Mr. DePrima suggested that the Revenue Indicators be removed from the Revenue Manual.

On a call for the question by Mrs. Williams, the motion to defer action failed by a vote of three (3) yes and six (6) no (Mrs. Williams, Mr. Truitt, Mr. McGlumphy, Mr. Speed, Mr. Salters, and Mr. Carey).

Mr. Speed moved to recommend removing the Revenue Indicators from the Revenue Manual, seconded by Mrs. Williams and unanimously carried.

Revenue Manual Review - Future Revenue Sources

As requested during the Committee Meeting of December 9, 2002, members were provided with a list of potential revenue sources for their consideration, categorized as follows: A) Potential Lower Yield Revenue Sources; B) Potential High Yield Revenue Sources; and C) Potential High Yield Revenue Sources that Require State or County Cooperation. Mr. Salters requested members to review the list and rank the suggestions in order of priority for submission to the City Clerk, who will then compile the results. Responding to Mr. Truitt, Mr. DePrima stated that department heads have been requested to review their current fees for possible adjustment.

Mr. Pitts suggested charging a fee to the vendors who set up in City parks. Mr. Ruane suggested that the City Manager consider the possibility of public utility taxation rather than a right-of-way fee. He indicated that it is being used successfully in other cities. Referring to Pay in Lieu of Taxes (PILOT), Mr. Ruane suggested that the City work in concert with Kent County to increase PILOT revenue.

It was the consensus of members that they would review the list of Future Revenue Sources and provide the City Clerk with a prioritized list for compilation.

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

Meeting Adjourned at 7:06 P.M.

                                                                                    Respectfully submitted,

                                                                                    Carleton E. Carey, Sr.

                                                                                    Council President

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