COUNCIL WORKSHOP MINUTES & EXHIBITS 1-5

COUNCIL WORKSHOP A Council Workshop was held on March 24, 2023, at 9:00 a.m. with Council President Sudler (departed at 1:30 p.m.) presiding. Council members present were Mr. Anderson, Ms. Arndt, Mr. Boggerty (departed at 12:00 p.m., and returned at 1:04 p.m.), Mr. Hare, Mr. Neil, Dr. Pillsbury, and Mr. Rocha. Mayor Christiansen was absent. Staff members present were Mr. Hugg, Ms. Duca, Ms. Gray, Ms. Poole, Mr. Waddell, Mr. Nowak, Police Chief Johnson, Fire Chief Carey, Mr. Lyon, Mr. Sylvester, Mr. Hamlett, Mr. Josefowski, Mr. Dill, Mr. Eaton, Ms. Haines, Ms. Peddicord, Ms. Bennett, and Ms. Rivera. ADOPTION OF THE AGENDA By unanimous consent, the agenda was adopted. INTRODUCTION AND OVERVIEW David S. Hugg III, City Manager, welcomed Council Members and staff to the workshop. Mr. Hugg stated that this workshop is mostly about hearing from members of Council, to get their reactions to the presentations they will be given. He explained that they are going to get into Council’s priorities, their issues, and their concerns so that staff can build them into the budget process and everyday activities. This year's retreat timing is better because staff are into the budget process but they have some opportunity to make some changes. Mr. Hugg reminded everyone that this is a public meeting. ECONOMIC UPDATE David S. Hugg III, City Manager, reviewed the presentation titled “Council Workshop Economic Update” (Exhibit #1). Responding to Mr. Sudler, Mr. Hugg stated that is part of the MPO planning process. Not too long ago, he presented to council a list of their priorities as they have shared with the MPO and DelDOT. So, there is a sort of long-term capital improvement plan for the roadways. DelDOT's plan also includes ongoing maintenance, upgrades, safety improvements, and those kinds of things. So, they have been actively talking to them throughout that whole lending process. Responding to Mr. Sudler, Ms. Gray stated that DelDOT is going to be talking to the city at 1:45 pm regarding how they collect information on traffic counts and transportation improvement districts. Responding to Mr. Sudler, Mr. Hugg stated that he would defer to the fire chief or Ms. Gray to respond specifically to that, but they are bound to follow the adopted fire code. Mr. Hugg explained that the fire code does provide some alternatives, some facilities have on-site fire pumps and tanks and their own water supply as an alternative, but they are usually tied into the sprinkler system. It is not just that they have water on-site. Mr. Hugg stated that it is an issue, and there has been at least one project downtown that was pulled off the list of active projects because the sprinkler system was higher than $10,000. Ms. Mary Ellen Gray, Planning Director, stated that the Downtown Dover Partnership has the Capital Improvement Program grant. The Steering Committee just approved the second round of grants, and their priorities include funding for sprinkler systems. The priority for going to the State

CITY COUNCIL WORKSHOP OF MARCH 24, 2023 PAGE 2 Bond Committee includes asking for additional funding to help out businesses downtown to install sprinkler systems. The Downtown Dover Partnership is trying to help businesses downtown install sprinkler systems and get funding to put them in. Responding to Mr. Sudler, Ms. Gray stated that the program is through the Dover Downtown Partnership and has been heavily advertised, and they received more applications than funding. Mr. Neil stated that the day prior, three grants were approved, one was for Grey Fox, and one was for the Golden Fleece, including 88 bathrooms, so this money is available, it is dispersed, but it is coming through the DDP as Ms. Gray mentioned. It is there, it is active, and it is controlled so that somebody is coming down to the Downtown area. Responding to Mr. Sudler, Mr. Hugg stated that can be discussed at the working lunch. Mr. Hugg stated in regard to Dover and not the City of Dover, the last numbers he was able to find from the Bureau of Labor Statistics indicate that total employment in Dover is going the wrong way and is down. Mr. Hugg stated it is a considerable issue and it is hard when recruiting a new business to come to town if they ask us the question, "Can you guarantee a trained and committed workforce?" And the answer is, "I do not know. You cannot hire somebody to work at WAWA let alone work at an industrial plant." Responding to Ms. Arndt, Mr. Hugg stated that most of them are paying a competitive wage. Mr. Hugg stated the Box Outlet has raised their wage twice in the year that they have been in operation. The competition out there is resulting in higher wages in the public sector and the private sector, there are hiring bonuses and retention bonuses. Mr. Hugg noted he does not recall in his career a time when police officers were getting bonuses to sign up, but they see Newark and others saying, “Sign here, you will get $10,000 and stick around six months and you will get something else." It is making it very difficult. Chief Johnson stated that recruiting is kind of a narrow-focused bill, he has not seen where it is, either in committee, or whether it has even made it to the floor yet, but it is mostly about recruitment and intention. There are some options in that bill in its current form, for municipalities, whether they want to invest that in marketing and recruitment, or whether they want to use that to pay some salary for the first couple of years. Almost like the cop's plan, to give them a head start and give them time to budget plan for added individuals, but he does not know what the final form is going to look like, and he does not know what the funding formula is going to look like, because there is a lot of those that are not happy with the current price tag. So, if they drop the total value of that bill and they spread it out to all the departments, as they currently proposed, he is not sure how much that moves the needle in Dover, considering the size. But again, there are a lot of chapters to be written in that book so he will check back later. Responding to Mr. Anderson, Mr. Hugg stated that his understanding is that it is still tied up in Washington but was told that some of the environmental issues have been resolved and that there was discussion on the extension of the existing agreement if they could not agree to the broader agreement. Responding to Mr. Rocha, Mr. Hug stated that there is no good alternative for the size of the operations that they were anticipating at the air base, and the airport in Cheswold has a relatively long runway, but it is not set up to take major cargo carriers. Most of the other airports in Kent County are small, dirt runways, or grass which is not a good fit.

CITY COUNCIL WORKSHOP OF MARCH 24, 2023 PAGE 3 BOND RATING REQUIREMENTS Ms. Lori Peddicord, Controller/Treasurer reviewed the presentation titled “Bond Rating Overview (Exhibit #2). Responding to Mr. Rocha, Ms. Peddicord stated that is a key driver she spoke of. Ms. Peddicord stated that they look back at your prior financial information. They look to see if the city has had clean audits, if there were any findings, single audits to see what kind of funding has been received, whether the funding has been spent, if there have been internal control issues. Ms. Peddicord stated that they review how you conduct business. Responding to Mr. Boggerty, Ms. Peddicord stated that he does not have the information at the current moment regarding how Dover compares to surrounding cities. Ms. Peddicord stated that it is a lot of work and that she was hugely involved in the 2018 issuance. Mr. Hugg stated conduit bonds are what he had previously mentioned. Mr. Hugg stated he is unaware if the city has done it but there are joint ventures with the state for various revenue bonds. Responding to Mr. Neil, Ms. Peddicord stated these are not the only two bonds that the city has. Ms. Peddicord stated when looking at the city’s financial statement, there are other loans or bonds, such as the ones that were received from the state revolving loan fund for projects, with very low interest. The newest one is the principal forgiveness program. Ms. Peddicord stated that it saves the city’s staff work because it is the program’s staff that is doing the work. The city does have to get a bond council involved but participating in their bond program is the preferred method. Ms. Peddicord stated that it depends on the need and what is being chased after, if it is the city’s infrastructure, like with the electric fund, that would be driven by the city’s issuances. Responding to Mr. Neil, Ms. Peddicord stated that the conduits are slightly different. Again, that is when the state is trying to issue and/or the city issues bonds to a private partnership to develop a parking garage, a stadium, or an ice rink. The city can go out and get the bonding for them at a lower rate in most cases and tax-exempt. Whereas if they were to go and try to finance that themselves, they would probably pay a higher percentage on the borrowing. The issuance of conduit bonds does not have any effect on the city’s ratings because again, they are not the city’s bonds, even though the city is doing some of the legwork to go get the financing. Responding to Mr. Sudler, Ms. Peddicord stated that many of the city’s departments have master plans or long-term plans, the city has a CIP plan that gets presented with the budget every year. Things are pushed off because the city does not have funding. Ms. Peddicord stated bringing all of that data to the table so that all of the individuals that are making decisions understand all the variables that are in front of them and the options that they have to pick from and then prioritize them. Responding to Mr. Sudler, Ms. Peddicord stated that it would be important because they are not only trying to keep their infrastructure upgraded and improve infrastructure, but council has their own goals and their own desires of what they want to see within the city. Having everyone at the table, and knowing what they are expecting would help them build a more improved CIP plan. Ms. Peddicord stated having everyone at the same table will help them have a better understanding because they have to go chase financing or they have to have the money.

CITY COUNCIL WORKSHOP OF MARCH 24, 2023 PAGE 4 Mr. Hugg stated the next presentation will be on Budgetary Expenditures. Mr. Hugg acknowledged the hard work of Sharon Duca and Jeff Dill. Mr. Hugg stated the numbers they will see are still preliminary as they look at where last year ended and whether there are projects that will not be completed and whether some funding may not need to be allocated like planned, and the current costs of materials. BUDGETARY EXPENSES AND CHALLENGES Sharon Duca, Assistant City Manager, reviewed the presentation titled “Budgetary Expenses and Challenges” (Exhibit #3). Responding to Mr. Rocha, Ms. Duca stated that very few will lock in a vehicle price. There was a vehicle for the electric department earlier this year that was under contract and they were provided with another document saying that the price increased due to steel and other materials. Ms. Duca stated when they do go through the budget for the next year, which Mr. Dill has brought up at their department meetings, if there is a vehicle that was budgeted, in fiscal 23’, and they are getting information that the price is higher, a differential is being added in the next year's budget. So, the city will be able to cover those costs for the prior year's vehicle. Ms. Duca noted that they are trying to take potential increases in cost into account so that by the time the vehicle comes, they can be paid for. Jason Lyon, Director of Water/Wastewater stated there is a ton of money out there federally and the numbers are not high just because of materials and inflation. There is other work out there that these contractors can do, there is only so much work that can be done. Responding to Mr. Hare, Ms. Duca stated that is not the total cost of just the MOU. They already had a contractual increase to go from fiscal 23’ to fiscal 24’. The MOU itself is less than 0.3 or less than 300,000. So that is a combined pay increase. That is one of the things that should be kept in mind in going from year to year, there is typically an approved wage increase for employees, whether it is non-bargaining or union, anywhere from 1% to 4% depending on the year. So that includes more than just the MOU. Responding to Mr. Anderson, Ms. Duca stated that the $4 million is a necessary increase to cover current liabilities. Ms. Duca noted that would be a reoccurring amount and how much the city would have to invest every year. Responding to Mr. Anderson, Ms. Duca stated that the budget balance from this year is currently being reviewed. It is referenced in the revenue part as a projection for the start of fiscal 24’. Ms. Duca stated that is why part of cleaning up the budget for fiscal 23’ is to make sure that they are as close to estimates as possible which helps improve what they are looking at for fiscal 24’. Responding to Mr. Anderson, Ms. Duca stated that there were three numbers in the wage study. One was just the general fund portion of $3 million, the second was for the utilities, electric, water, and wastewater at $2.8 million and then the third was $5.8 million across the board. Ms. Duca noted that this is not a phased-in plan. BUDGETARY REVENUES AND CHALLENGES Sharon Duca, Assistant City Manager, reviewed the presentation titled “Budgetary Revenues and Challenges” (Exhibit # 4).

CITY COUNCIL WORKSHOP OF MARCH 24, 2023 PAGE 5 Responding to Mr. Anderson, Ms. Peddicord stated that it is probably 18 to 20 million. Responding to Ms. Peddicord, Ms. Duca stated they have not considered a rate increase. It is the same revenue from the customers as this year. So that is the same number used across the board. Mr. Hugg stated one thing that is not on the table is that there is a movement towards a library tax district. Milford currently has a library tax district. Smyrna and Harrington are building new facilities and looking to finance operations by tax. If that is adopted the city will lose the reciprocal borrowing source of income from the county. Those numbers are in the range of $250 to $300 thousand a year. Responding to Mr. Rocha, Mr. Lyon stated there are about 5% on each water and wastewater. A normal residential unit uses three kw gallons a month. That would be $13 per kw gallon, times three is $39, or 5% of that is two bucks every month, in an average residential unit. Of course, it is more exponential if someone has a sprinkler system but that is about the number. Responding to Mr. Rocha, Ms. Duca stated that the sanitation fee is already in effect, and it is around $25 a month. The increase would need to be about two dollars more a month for it to be self- sufficient. Ms. Duca stated the stormwater utility marketing, she believes is between $2 and $3 a month for a normal residential household. Ms. Duca explained that the rate studies look at the city’s operational expenses and things of that nature, their capital program in terms of trying to establish the permanent rate, which would be presented once that is available. Ms. Duca noted that they did not change the rate, the rate stated the same. Ms. Peddicord stated when Ms. Duca is referencing stormwater, utilities, and sanitation fees, waste and wastewater are its own fund, but the other two funds are not. To meet the financial responsibility, the city would need to either increase the tax rate or take projects out. The current suggestion is to make the funds self-sustaining which could allow the city to not raise the taxes. Ms. Peddicord stated it may be easier to pull some of the items from the general fund that should be self- supporting, and council could easily explain why and what the city is doing. Ms. Peddicord also stated that the city was behind on the electric rate study. Ms. Peddicord stated with the electric, and power supply costs, and the economy their backs were up against the wall. However, the economy has changed in regard to power supply. Responding to Ms. Duca, Mr. Lyon stated that the rate increase was approved by Levy Court, and it is a 10% increase. The city collects the money from the customers and then they send it to the county to treat it. It is a pass-through cost for the city, but that will impact the city’s customers as well. It is going from $2.58 per thousand gallons to $2.84, roughly a dollar a month per month. Responding to Mr. Sudler, Ms. Duca stated that in terms of capital expenses, on the sanitation side, paying for the trash trucks that have increased per year would come out of the general fund and be part of the enterprise fund for sanitation. On the stormwater side, the city has vehicle replacements like street sweepers, which are part of the stormwater-related budget. The city also has programs or capital projects, such as the PW-2 and the tax ditch or meeting house branch, and they are all stormwater related and those would move from the general fund. The city has bond bill money for a lot of the construction, but because of the contamination that has occurred at PW-2, those are the city's obligations, and it is difficult to find money to cover expenses. The city needs to make sure

CITY COUNCIL WORKSHOP OF MARCH 24, 2023 PAGE 6 these are appropriately planned for in the correct year so that they are going to be able to accomplish that, even if it may take a crossover of fiscal years to financially afford the project as well as accomplish it. There are also some other stormwater projects to improve drainage in different developments. Some improvements to West Street that they have been working through the design on and some other developments like East Lake Gardens. Ms. Duca stated Mr. Lyon brought forward the Mirror Lake project, the parking lot behind the old post office. Those are all stormwater- related projects that would move from general fund obligations to stormwater utility. Responding to Mr. Anderson, Ms. Duca stated that stormwater in particular would apply across the board to all properties but regarding sanitation, it would depend on who has the city’s services. It is similar to water, wastewater, and electricity in terms of the customer base. Responding to Ms. Arndt, Mr. Hugg stated that he thinks one of the fundamental problems that the city has is that there are way more projects or funds for projects than they could ever expect to be able to accomplish in a given year. They have applied for every source of funds that they can reasonably account for against the projects that they have on the books. The city used ARPA money, used bond money, and a whole bunch of other revolving funds. One of the problems is that the city can probably apply for $10 million dollars for 10 new projects, but their ability to do the engineering, construction management, and design all those things is, they just simply cannot do the projects. The city does not have the capacity. Mr. Hugg stated they have just gone through and asked for extensions on some projects because they are just not able to keep up. Responding to Ms. Arndt, Mr. Lyon stated that the city recently received $1.8 million in omnibus funding. The funding that was received, the city applied for that probably a year ago, maybe more. The city has received additional funding to supplement that project already. The community reinvestment fund allotted the city $3 million dollars for that. That money was then allocated to projects that they could work on immediately. Then the omnibus money had to be reprogrammed because the original intent was for a project that they had already funded. Mr. Lyon stated they are not the worst problems to have, but it is management. Mr. Lyons stated they have some principal forgiveness projects for some water projects through the bipartisan infrastructure bill that they applied for. They just cannot get $10 million and then there are requirements to get the money spent in a certain amount of time. Prevailing wage, which makes the project more expensive than it would be if they do city funds. All these things are all factors that are taken into consideration. Responding to Mr. Boggerty, Mr. Hugg stated that part of the rationale for continuing the grant writer position was a parallel effort to ensure that the departments developed the capability to identify and go after grants relative to their areas of operation. The grant writer was successful in getting the city some funds that they probably might not have gotten. The University of Delaware provides grant writing and grant assistance which is more efficient to use. The grant writer was successful in helping the city get some earmarks from the federal government. The city received money for an accessible playground, some water projects, and police cameras. Responding to Mr. Sudler, Mr. Hugg stated that the police have regularly gotten funded for grants a couple of times. Mr. Hugg stated they have been reasonably successful both in moving in that direction, finding grants, and applying for them where they are appropriate, and in being able to manage them as best they can. WORKING LUNCH Naomi Poole, Human Resources Director stated that the Police Department is leading the pack by way of attrition. Ms. Poole stated that this is normal by way of retirements, voluntary terms and

CITY COUNCIL WORKSHOP OF MARCH 24, 2023 PAGE 7 most retention issues seem to be most specific to the civilian roles. The MEO positions, streets, and signs have always been an issue and they have had some turnover this year as well. The majority being voluntary and involuntary. In regard to the MEO positions, pay seems to be a consistent issue and they are underpaid for the fact that they require a CDL license. Ms. Poole stated it is always an issue to fill that position and maintain people who come here and get their CDL licenses and then leave. The city has seen some turnover in customer service and that has been voluntary, they have not had any involuntary turnover there, but it has been consistent by way of the customer service department. Ms. Poole continued to state that they have seen some small turnover in the Library Department. Ms. Poole stated that Human Resources continues to conduct exit interviews. Human Resources has recently teamed up with the Police Department, and they have been doing exit interviews as well. Human Resources has been compiling all the information, but they have not shared a whole lot because she is still sort of compiling a lot of that information. Ms. Poole explained what seems to be consistent about why people are leaving is number one, the pension, they are going to other municipalities that do have a pension. Pay is too low, and something that is kind of new is the issues with morale in their department. Responding to Mr. Hugg, Ms. Poole stated that the MEO night sweeper received one application this past week, but it has been posted for two months now. Ms. Poole explained that the Human Resources Coordinator position has been limited as well. Ms. Poole has done a lot of interviews for that role but the trend there is pay. Private-sector Human Resources coordinators get paid more and what the city is offering is not what they are looking for. Ms. Poole stated that they have noted pay is an issue with a lot of these positions, even the ones that they do not get a lot of applications for. Responding to Mr. Rocha, Mr. Hugg stated that the money is for them to do their structural and environmental assessment of the old post office. Responding to Mr. Rocha, Mr. Lyon stated that the water main on Loockerman Street is old and it needs to be ripped out, it planks the sides. The sewer on Lockerman Street used to be a combined sewer, which means that it used to accept stormwater and wastewater before there was the Clean Water Act of 1968. The good news is that the sewer is the size that is needed, but it is not in the best structural condition. It can be prepared to where they would go in and realign the pipe and create a new pipe alongside it. Not a lot of disservice. The water main would be significant much like the State Street project. DelDOT will dictate which way it gets done but they will probably do a block at a time, to be shut down, but the sidewalk will need to be open. There will not be any traffic on those days. Responding to Mr. Neil, Mr. Lyon stated that they need to get the game plan done with remediation first so they can understand what they are going to do down the road. Repairing the buffer is going to be required it is kind of like Meadow before it gets to the river. That is going to be part of the reconciliation order for that site. If they are envisioning Milford with the walkway that is right up against the river, that is probably not going to happen. It is almost like a filter, an environmental filter before it gets to the river. Mr. Lyon stated that will need to be figured out to envision the potential of what will go there. Responding to Mr. Neil, Mr. Robin Eaton, Parks, and Recreation Director, stated that there is potential for funding through the state and DNREC. Mr. Eaton stated that they can only have three grants open at any given time through DNREC. Currently, the city has three, but one should be closing shortly. One was from the spray pad and then the other one was revolving over two years,

CITY COUNCIL WORKSHOP OF MARCH 24, 2023 PAGE 8 at a $33,000 match. The cycles are twice a year between the fall and the spring. Mr. Eaton stated that they are looking at the fall with the skate park this year. Mr. Eaton stated that the state just lowered some of the grants, it used to be a 50,000 population, but they lowered it down to 30,000, which now includes Dover. There is potential for more funding for that as well because of the population. There are funds out there and as they know there are final projects that he must get closed. Mr. Anderson stated the money from the Garrison properties was put in for economic development and a lot of it came from economic development funds and utility funds that had been set aside for economic development. Mr. Anderson stated that part of the money needs to be set aside to be reinvested so that the city has matching funds available when grants become available or when the land use agreement with the Air Force base is finalized for land by the base. Mr. Anderson stated it only makes sense that when there is a sale of the Garrison properties, the city puts some of the money back for future investments. Responding to Mr. Rocha, Mr. Anderson stated that there were three properties identified for the truck stop but which one they would use would be determined by how much of that grant comes through, if any. If none of it comes through, they may have to go to the cheapest property they can get but if it does, then they may have to go with more of the premium property. Mr. Anderson stated since it is a public meeting, they do not want to say which property at this time. It is not a secret, but if they identify it and it gets out, property prices can increase, and other things can happen. Mr. Anderson also stated that they cut the general fund from the electric from $11 million to $8 million, a total of $3 million so that they could keep the electric rates as low as possible. The electric rate increase was driven by the cost of power at the time and if they did the full amount of the cost of power, the rates would have been even higher. Mr. Hugg stated that they had the benefit of a very warm winter as compared to where they were projecting it to be a year ago. That had two effects. One, it pulled down demand, but it also kept the wholesale energy prices under control. Mr. Hugg stated that the city has applied for an electric vehicle grant through the state. They are desperate to get vehicles on the road and give money to people to use electric vehicles. The application is state-funded for up to half a million dollars and includes vehicles, charging stations, and some training. They are not replacement vehicles; they are part of a pilot of new vehicles. COMMUNITY RELATIONS OFFICE DISCUSSION Mr. Anderson stated council has discussed what a community relations office might look like and some of the goals, what could be achieved, and how it could be done without pulling officers from where they need to be, and services. Mr. Anderson stated there was a motion from the Safety, Advisory, and Transportation Committee to discuss the Community Relations office further at the Workshop. Mr. Anderson stated the idea is about establishing presence not a substation. Chief Thomas Johnson stated that what this comes down to when they look at the offer that has been extended against the concept of what had been previously considered, which was a police mini station there are pros and cons listed for both things. For practical purposes, creating a police mini- station opens up a lot of other challenges down the road that they might not realize when looking at the initial idea. However, what they would brand this office, what they would call it, and what its function would be, that is what is important. Multiple mini stations have been opened and

CITY COUNCIL WORKSHOP OF MARCH 24, 2023 PAGE 9 subsequently abandoned due to various environmental reasons like staffing, budget, and priorities changed or shifted, and instead of needing resources in one neighborhood, they now needed them someplace else. After some time, the residual sign that would still be hanging there or graphics on the door front became a chuckling point for the members of the community because the building is there but it is useless. That kind of led to why having a mobile outreach vehicle helps you service neighborhoods and be where they need to be in the moment. Chief Johnson stated that when they talk about the opportunity at hand, one of the neighborhoods never stopped being a place where they needed to put resources and connections to services. Whether that be public safety, crime prevention literature, fire safety, or healthcare and EMS services. Then just the simple fact of having a place for folks that needed a photocopy made because they needed to send a resume somewhere, or college transcripts for an internship. It kind of becomes a community policing office, not a police substation. Chief Johnson stated the office will not be staffed by full-time law enforcement, but a civilian specialist during business hours. The civilian specialist knows how to engage the community and understands the needs of that community. Just a simple little office environment with basic technology being available and people can get life processes done. They would be able to come to the community policing center, and they have a myriad of pamphlets and connections. Chief Johnson stated his recommendation would be rather than a police substation which has all kinds of overhead, and all kinds of infrastructure challenges, council may consider some type of community outreach office. Chief Johnson stated if council wants it connected to the policing brand, the Police Department can certainly try and incorporate that into their mission. Chief Johnson stated the only thing that he will caution is, however, it gets named and however it gets set up, they must manage the expectations. So, whatever they call this thing and however they roll it out, however, we market it, try, and limit the totality of the message. This is a public safety location and more of a community outreach location that is under the umbrella of the city. Responding to Councilman Boggerty, Chief Johnson stated that he was not suggesting that this was a solution to the problems downtown. Chief Johnson stated he would call this a complimentary piece to the downtown unit that council has signaled to him that they want to develop. Chief Johnson noted that he can make sure they are maximizing their efforts in every place that they can. In his perfect world, the Mosaics plan, recruitment, retention, and deployment of this downtown unit, which will be present in that vicinity and making frequent stops not only at a potential community center but at other key locations in that greater downtown area. Responding to Councilman Boggerty, Chief Johnson stated that he understands expectations and he thinks it is exactly what they are talking about. Chief Johnson stated he does have some experience with one office that was not a sworn staff member nor any kind of law enforcement capacity. The office had no cells, no secure computer network, just a working office with a civilian specialist that had the aura of the police department interwoven with its more expanded mission. It’s the ability to be a little bit more agile in delivering what might be needed after the needs are assessed by the person that they put there. That is an option to consider. Responding to Ms. Arndt, Mr. Anderson stated that the city can look at offering the space to an established nonprofit that offers those types of services rather than the city taking it on. Mr. Anderson stated contracting now is consistent with the city’s charter and a lot of times those nonprofits already have the grants to do so, but they just need space. They have the people, but they do not have a place to operate. Mr. Anderson stated that could be a viable option and he thinks that is something to explore as well.

CITY COUNCIL WORKSHOP OF MARCH 24, 2023 PAGE 10 Mr. Sudler stated that he feels it should be a police-community relations center. Mr. Sudler stated it does not have to be a police substation, but it must be linked to the Dover Police. Mr. Harrington specifically said that he wants it linked to the Police Department. If it is not linked to the police, then he can rent it to anyone. Mr. Sudler stated the community relations center could be a way to bridge the gap between the community and the police department. The community wants to build a stronger relationship with the police department, they are often looked at as an opponent rather than an ally. Mr. Sudler stated it can have someone that is cross-trained and linked to Dover PD. TRAFFIC IMPACTS AND TRANSPORTATION IMPROVEMENT DISTRICT DISCUSSION Luis R. Rois Fontanez, Program Manager for DelDOT reviewed the presentation titled “Vehicle Volume Summary Presentation” (Exhibit #5). Responding to Mr. Anderson, Mr. Rois Fontanez stated that they would have to just contact him directly. If they go online and put DelDOT Traffic Counts, it will have his email on there. Mr. Rois Fontanez stated that they usually only do state-maintained roads to collect data however, if it is a municipal road, they can assist with it. Mr. Rois Fontanez stated the good thing with Dover is that most of the streets in downtown Dover are state maintained so he can assist with that project. Responding to Mr. Neil, Mr. Rois Fontanez stated that is one thing that they are always aware of, especially when they are collecting data. They take those things into consideration when they schedule the short-term counts because the other counters that they have are there year-round. Mr. Rois Fontanez stated when they schedule the short-term data they have to see when those festivals are happening. If they are counting areas that are near schools, they must make sure that they count during the school year when traffic is at its highest peak. Mr. Rois Fontanez stated anything that falls under recreational, they will do the counts in the summer. Mr. Rois Fontanez stated that is one thing that he has changed since coming to the program. Before people complained that it stated only 500 vehicles went through the area, but they know that 10,000 come through in the summer. So, anything that is affected by tourism must be counted in the summer. Anything that is counted near Newark must be counted in the fall and spring, not in the winter. Winter traffic does die down. So, they pay close attention to those things when they schedule those counts because it is important. Responding to Mr. Rocha, Mr. Rois Fontanez stated that he believes it is Mike DuRoss who handles forecasting for the future. Mr. Rois Fontanez stated his team handles all the data that they published in the previous year. For example, on April 15th, they will be publishing all the data that they collected in 2022. They do have data that they are collecting every single day, but for something a forecast of what traffic is going to be in the future would be Mike DuRoss. Ms. Sarah Coakley, TID Program Manager, reviewed the presentation titled “Transportation Improvement Districts” (Exhibit #5). Responding to Councilman Rocha, Ms. Coakley stated that yes, the traffic studies are done along state roads. Ms. Coakley continued to state that they would just look at where they are accessing the state-maintained roads. Ms. Coakley stated it depends on how far off the state network it is and how many trips they are generating, if they send 50 peak-hour trips to a state road then they would still want to look at it. Ms. Coakley noted that they would be happy to review applications for the city’s requests.

CITY COUNCIL WORKSHOP OF MARCH 24, 2023 PAGE 11 Ms. Mary Ellen Gray stated that if they are looking at developments such as apartments, most of these apartments would be zoned in an area that would be directly accessing the state road but at most they would be one city road from a state road. Therefore, DelDOT would most likely consider that, and they would be treated as if they were feeding into a state system. Responding to Ms. Gray, Ms. Coakley stated that it would depend on the number. If it is 50 apartments, then no but if it is 500 then definitely. Responding to Mr. Rocha, Ms. Coakley stated that they come to them, and depending upon if they are right on a state-maintained road, then they are required to dedicate them right away along the state-maintained road based on functional classification. If an entrance is needed, then they are coming to DelDOT. Depending upon what they are proposing, if they meet the thresholds for traffic index study, they can require it. Local governments can require traffic index studies too. Ms. Coakley stated there are cases where DelDOT does not require one, but the local governments ask them for one. There is one development going through the process now in Middletown, but it is adjacent to a TID there and it is kind of under the normal threshold because it is a lot of traffic. The town is requiring them to do a mini TIS so DelDOT is working with them to give them the data but they are having the developer actually do the analysis and then DelDOT will verify their information for the town. Responding to Mr. Rocha, Ms. Coakley stated that it depends on what the improvement is. If it is something like an extra turn lane, DelDOT would have to build it, if it is anticipated that their development is going to trigger a signal, DelDOT will have them enter into a traffic signal agreement. It also depends on the length of time, if they expect it to be triggered for a signal soon, they will have them pay into the traffic signal revolving fund and then that money will be used towards the traffic signal. Ms. Coakley stated it depends on the size of the improvement as well. If it is small enough, DelDOT has them build it, if it is larger, DelDOT has them contribute to it based on their trip generation. Responding to Mr. Neil, Ms. Coakley stated that she knows DTC or Dart has done pilot programs. Ms. Coakley continued to state that she knows for a while they had something running around their campus in Dover and then she thinks they have done pilots in several other places, but she is not sure what the process for that is unfortunately. Ms. Coakley noted that she can get contact information for them and get it to Ms. Gray to pass on. Responding to Dr. Pillsbury, Ms. Coakley stated that when they do transportation improvement districts, they look 20 years out. When folks do an individual TIS, they are looking at the build-out of their development, so they are not looking out that far they are just looking to see when their development is going to be done. So that makes it more of a challenge. Ms. Coakley stated that when a project is identified as needed unless they have legislative funding or some special circumstances, it is projected for eight to ten years out in terms of seeing the project constructed. CLOSING REMARKS AND COUNCIL COMMENTS Mr. Neil stated that he has had a lot of unique experiences. Mr. Neil stated the department heads, the administrative assistants, and all the people that work for them are the ones who make council look good. Mr. Neil stated they are using other people’s money and the city must watch that money and spend it carefully. Mr. Neil stated if they know there is a problem, even if it is not their department, make sure they know what is happening. The lines of communication must be open so that council can get the information to the public. Mr. Neil also stated that he wanted to say thank you because whatever the staff is doing, they are making council look good.

CITY COUNCIL WORKSHOP OF MARCH 24, 2023 PAGE 12 Mr. Rocha stated that he has been in Dover for over 25 years, and it reminds him of where he grew up, which is why he retired from the Air Force and stayed. Mr. Rocha stated he is a proud member of the Dover City Council and a proud member of the City of Dover as a whole. Mr. Rocha stated he feels Dover has the extreme potential to be a destination for people to come. Mr. Rocha knows that they have challenges here to get them there, but he thinks collectively they can do it. Mr. Rocha feels the Mosaic plan is an excellent opportunity to begin the efforts to get to that vision. Mr. Rocha explained that he will try to utilize whatever knowledge he has and work collectively with every one of them to try to see the city through to get there. Mr. Rocha stated there are some changes that need to be made and the infrastructure may not be able to accommodate some of the vision of that plan. Mr. Rocha stated collectively they can work toward a design that they will be proud of and looks forward to being engaged and participating in it. Mr. Rocha stated so many people come to him and tell him they used to swim in Silver Lake, and he would like that to be a destination spot, and see people swim in Silver Lake again. Mr. Rocha stated he would like the city to collaborate with students at DelState and see if there is any possibility of restoring that to a degree where they could make that an enjoyable destination as well. Mr. Anderson stated that they have a great city. Mr. Anderson stated they have in his view a fine city council which he can say he has had the opportunity to serve with. Mr. Anderson stated that he feels they have nine very smart people who have a vision that goes in the same direction. Whether they always agree on how to get there the same way. Mr. Anderson also stated that they have an understanding that all wisdom is not in the city council and the Mayor but that the citizens, employees, investors, and business people all have the wisdom to bring as well. Mr. Anderson stated that they are committed to finally addressing the problems that have existed in certain areas for the last 50 years, they are not easy choices, but they do have roadmaps. Mr. Anderson stated that the Mosaic came from the effort of the city, and they brought their expertise to show a pathway to make what council wanted a reality. Mr. Anderson stated he thinks they need to make their plan lobbying for the right funds to make the Mosaic plan happen. Mr. Anderson stated he too would like the city to be a place they can walk through with their families safely, and create a place where people want to raise a family because the economy supports it. A city where there are a diversity of opportunities and people can connect with a workforce that can meet the opportunities that exist. Mr. Anderson noted that he thinks that achieving a good equitable pay system for the city employees is a good idea and very appropriate, but it must be sustainable and affordable to their taxpayers so that they do not drive away residents, businesses, and economic opportunities. So, they must keep the big picture in play but also have to be fair to everyone. Mr. Anderson stated that he thinks that the marketplace is crying out and that they must take care of their employees. Allowing people to buy into the state systems would help with existing employee retention and then recruitment. Therefore, that is going to provide better customer service to the city, and they are going to be able to have staff levels that they need to have the services that the people have come to expect for a price that they can afford. Finally, Mr. Anderson would like to find more creative ways to communicate with not only each other but also with their citizens, and their stakeholders. In the 21st century, it has become so hard to communicate and it used to be easy. They put something in the newspaper, in the electric field, or on the local radio stations. They have all the elements in place, council just needs the right vision

CITY COUNCIL WORKSHOP OF MARCH 24, 2023 PAGE 13 to put them together in the right fashion. Dr. Pillsbury stated that she has been learning a lot about how the city functions and how the city council works. Her experience, if they will consider it political, has been as Chair of the Department of Pediatrics working with the AMA and the American Academy of Pediatrics. Dr. Pillsbury stated she has never really been involved in local politics, but it has been a very interesting experience. Dr. Pillsbury stated when her family came to Dover, she was excited because she had two malls, but she could not believe it and they did not have a Walmart. Dr. Pillsbury stated her son was just devastated and wanted to go back to Missouri because there was no Walmart. Dr. Pillsbury stated she is excited that they are going to make improvements to downtown because downtown was much nicer when she moved here. Dr. Pillsbury stated that Dover has a great environment, and she is very excited to be actively involved and hopes she will provide some good guidance. Mr. Hare stated that he has been in Dover for just over 50 years, and he has seen a lot of changes. When he first got on council, he was told by a very wise man that it is not his job to run the city. It is his job to watch and oversee. That is what he has tried to do because the people that are here, that is their job. Mr. Hare stated that department heads empower the employees that work for them to do their jobs and that is transformational leadership. It is the staff that does the work and makes the recommendations. Mr. Hare said whether they agree or disagree, whatever the decision is, they live with it and they go with it. Mr. Hare stated that the city is only as good as its employees, and they have great employees. Mr. Hare believes they need to take care of those employees and trust them. Downtown in 1971 was totally different than it is today. They had a Woolworth, a JC Penney’s, they had all kinds of little places, men's clothing stores, women's clothing stores. Mr. Hare stated it is not council’s job to tell them how to do their job. So, keep it up, the employees are great. City Manager Hugg thanked everyone for coming. The meeting was adjourned by unanimous consent. The meeting adjourned at 3:00 p.m. ANDRIA L. BENNETT CITY CLERK All ordinances, resolutions, motions, and orders adopted by City Council during their Workshop of March 24, 2023, are hereby approved. ROBIN R. CHRISTIANSEN MAYOR /AB Exhibits Exhibit #1 – “Economic Update” Exhibit #2 – “Bond Rating Overview” Exhibit #3 – “Budgetary Expenses and Challenges”

CITY COUNCIL WORKSHOP OF MARCH 24, 2023 PAGE 14 Exhibit #4 – “Budgetary Revenues and Challenges” Exhibit #5 – “Vehicle Volume Summary Presentation and Transportation Improvement Districts”

EXHIBIT #1 City Council Workshop of 03/24/2023 COUNCIL WORKSHOP 6.53 Economic Update

SOME BACKGROUND FACTS FACTORS THAT INFLUENCE OUR ECONOMY

POPULATION Dover’s population Current 2022 growth averaging population about 1% per year. Slower growth than County or rest of approximately State. 40,000. (Smyrna & Middletown 2%+ per Projected to reach year.) 40,179 in 2025. 3/24/2023 Council Workshop 3

INFLATION Currently slowing from last year Impacts on the cost of goods and but still high at 6.4% (CPI services we buy. December 2022). Holds down consumer spending. Increases the cost of infrastructure projects. Creates volatility in pension and other funds. 3/24/2023 Council Workshop 4

INTEREST RATES Federal Reserve Bank Results in lost sales. Cost of manages rates to limit capital makes projects inflation. uneconomic. Higher rates tend to limit Higher rates make it more consumer purchases (cars, expensive for us to borrow houses, major items). but increase our return on investments. The Federal Reserve Bank increased rates yesterday. 3/24/2023 Council Workshop 5

HOUSING Slow population growth Higher interest rates limit reflected in demand / sales and new construction. housing starts. Dover seeing more Realtors expect uptick in apartments but fewer high foreclosures. value dwellings. Overall housing market in Affordability is a growing Dover is very tight. concern. 3/24/2023 Council Workshop 6

COMMERCIAL SECTOR Activity in market but Retail evolving to new models inconsistent in Dover; not (away from big boxes and malls). reflected in business license growth. Newer building codes impose New projects increasingly slower constraints on reuse of older to fruition – longer schedules. facilities. 3/24/2023 Council Workshop 7

INDUSTRIAL AND OTHER SECTORS Bright spot as Dover is being Projects deferred and stalled discovered. due to capital costs and other factors. Workforce limitations (labor Dover running out of growth pool / can’t run extra shifts). areas. Serious deficiency in flex and Health care, education, spec space inventory but government and professional new projects underway. services strong. Time = Money (need it now) 3/24/2023 Council Workshop 8

WORKFORCE Hard to find and retain Many workers have not returned employees (City and private to offices; working remotely sector). (limits demand for office space). “Great Retirement” – fewer Wage rates and benefits costs workers in labor pool, changing escalating significantly. work expectations. 3/24/2023 Council Workshop 9

OTHER CHALLENGES Image and perception. Limited incentives. Older and obsolete built Tax exempt properties / environment; often cheaper limited tax base value to build new than renovate. (PILOT). Design, engineering, Legislative directives and construction resources are mandated services and costs limited. (bills addressing climate control, homeless rights, recovery housing, safe communities, accessible parking, etc. are pending). 3/24/2023 Council Workshop 10

OPPORTUNITIES TO EXPLOIT Delaware State University Downtown Master Plan Kent County Legislators in State Government City and County positions of influence Comprehensive Plans (JFC, bond bill, etc.). Healthcare DPP / KEP / KSLA MPO initiatives DAFB 3/24/2023 Council Workshop 11

E X H I B I T # 2 C i t y C o u n c i l W o r k s h o p o f 3 / 2 4 / 2 0 2 3 B O N D R AT I N G OV E R V I E W C O U N C I L R E T R E AT MARCH 24, 2023 LO R I P E D D I C O R D, CONTROLLER/TREASURER

R AT I N G A G E N C I E S W H AT T H E Y D O • Independent source of information and analysis for capital markets • Assist investors by providing ratings and detailed research on credit factors

R AT I N G A G E N C I E S WHO ARE THEY? THREE PRIMARY AGENCIES THAT RATE MUNICIPAL DEBT • FITCH • MOODY’S • STANDARD & POOR’S

R AT I N G S - W H AT T H E Y P R O V I D E ? • An indication of a government’s overall fiscal health • Ratings effect the cost of borrowing • High rating – lower coupon interest rate and vice versa • Over the course of 20/30 years this results in significant savings or cost to the entity • Rating agency monitors bond issuers over the life of the bonds • Rating upgrades/downgrades could occur each year 4

R AT I N G P RO C E S S • Analyst is assigned by the rating agency • Conference call to discuss government’s economic and financial standing • Analyst collects the data utilizing a scorecard framework or rating methodology • A rating is recommended by analyst to rating committee, sometimes resulting in a no change to current rating if metrics are inline with prior years • Rating is assigned once all financial and economic data requests have been provided • Issuer is notified of rating committee suggested action • Rating is released to the public

C I T Y O F D OV E R ’ S B O N D S (ISSUER) 2013 Water/Wastewater Bonds Orig Amt = $6.125million Balance as of FY22 =$3.3 million Maturity 2033 Refunding of 2003 +addlt projects 2018 Electric Bonds Orig Amt = $15.7million Balance as of FY22 = $13.5million This Photo by Unknown Author is licensed under CC BY-SA-NC Maturity 2033 Refunding of 2008 +addlt system expansion/upgrades 6

R AT I N G A N A LY S I S KEY RATING DRIVERS AND/OR METHODOLOGIES 7

K E Y R AT I N G D R I V E R S F O R UTILITIES • Revenue Defensibility – utilities exposure to demand volatility and flexibility in its rate-setting framework to recover costs of service • Operating Risk – assessment of operating costs burden and capital planning and management • Financial Profile – both historical and forward looking evaluation of leverage and liquidity • Asymmetric Risk Considerations – debt structure, management and governance, legal and regulatory factors 8

L O C A L G O V E R N M E N T SCORECARD USED BY MOODY’S Economy / Tax Base – 30% - Indicator of City’s ability to continue to generate revenues necessary for programs and services Economic Growth Compare the GDP growth of the City to US GDP growth over a five year period 10% Full Value per Capita 10% Full m arket value divided by population of City Resident Income 10% Median family income as a percentage of the US median Financial Performance – 30% - Operational and financial strength is a significant driver of credit quality Operating funds assets minus operating funds liabilities, adjusted for other resources Fund Balance as % of Revenues 20% or obligations available for operating purposes as a percentage of operating revenues Liquidity Ratio 10% Operating funds net cash (cash minus cash-flow notes) as a percentage of operating revenues Institutional Performance – 10% - Ability to match recurring revenue with recurring expenditures – City’s flexibility in adjusting tax, rates Leverage – 30% - Capacity to invest in assets & pay annual fixed costs, including debt service while meeting core responsibility of service Long-term Liabilities Ratio 20% Debt, adjusted Net Pension & OPEB Liabilities and other Long-Term Liabilities Divided by Revenue Fixed Costs Ratio 10% Adjusted fixed costs divided by Revenue 9

G L O B A L L O N G - T E R M R AT I N G S C A L E Aaa Highest quality, subject to the lowest level of credit risk. Aa Very high quality and are subject to very low credit risk. A High credit quality and are subject to low credit risk. Bbb Good credit quality judged expectations of default risk are currently low. Bb Speculative and are subject to substantial credit risk. B Highly speculative and default risk is present. Ccc Substantial Credit risk. Cc Very high levels of credit risk, likely in, or very near, default. C Exceptionally high levels and are typically in default. Note: Moody’s appends numerical modifiers 1, 2, and 3 to each generic rating classification from Aa through Ccc. The modifier 1 indicates that the obligation ranks in the higher end of its generic rating category; the modifier 2 indicates a mid-range ranking; and the modifier 3 indicates a ranking in the lower end of that generic rating category. 10

T A K E - A W AY S FINANCIAL PLANNING IS KEY • Reserves are important • Aligning recurring revenues and recurring expenditures • Flexibility in setting tax and utility rates • Long-term capital and master plans to guide future expenditure, borrowing and service delivery I N T E R NA L G U I DA N C E • Internal control policies and procedures (i.e. purchasing, reserves, debt and investment, budgeting and position control) • Strong financial policies and plans • Audited financial statements and forecast modeling 11

W AT E R / W A S T E W AT E R B O N D Rating_Action: Moody's upgrades Dover, DE's issuer rating to Aa2 from Aa3 02Feb2023 New York, February 02, 2023 -- Moody's Investors Service has upgraded the city of Dover, DE's issuer rating to Aa2 from Aa3. This action concludes a review that was initiated on November 3, 2022 in conjunction with the release of the US Cities and Counties Methodology. The city has about $6.6 million in outstanding debt as of June 30, 2021. RATINGS RATIONALE The Aa2 issuer rating reflects the city's growing economy, strong financial position, and low longterm liabilities and fixed costs. 12

D O V E R ’ S B O N D R AT I N G S HISTORICAL Water/Wastewater Revenue Bonds Issue Year Fitch 2014 - Upgrade AA+ 2016 - Affirms AA+ 2018 - Affirms AA+ 2019 - No Action AA+ 2021 - No Action AA+ 2022 - No Action AA+ 2023 - No Action AA+ Electric Revenue Bonds Issue Year Fitch 2014 - Affirms AA- 2015 - Affirms 2016 - Upgrade AA 2018 - Upgrade AA 2019 - No Action AA 2020 - Affirms AA 2021 - No Action AA 2022 - No Action AA 13

T H A N K YO U 14

EXHIBIT #3 City Council Workshop of 3/24/2023 COUNCIL WORKSHOP 6.53 Budgetary Expenses and Challenges

CITY OF DOVER TOTAL FINANCIAL PROGRAMS FY21 FY22 FY23 $139,712,643 $160,523,300 $195,117,094 14.9% increase 21.6% increase 3/24/2023 Council Workshop 2

FY24 PROJECTED FINANCIAL PROGRAM* 211,532,920 8.4% Increase *90% Complete (as of 3-17-23) 3/24/2023 Council Workshop 3

FY24 GENERAL FUND EXPENDITURES TRANSFER TO CAPITAL PROJECTS OTHER 17.4% 0.6% CITY ADMINISTRATION INSURANCE 4.6% 1.5% LIBRARY, RECREATION & GROUNDS DEBT SERVICE 5.6% 1.0% PLANNING & INSPECTIONS STREET LIGHTS 5.8% 1.4% RETIREE PENSION CONTRIBUTIONS 7.2% GF PROJECTED EXPENDITURES: RETIREE MEDICAL CONTRIBUTIONS 3.8% POLICE $67.3M FINANCIAL 34.6% UP $14.9M (28.6%) PUBLIC WORKS ADMINISTRATION 15.2% 0.0% FIRE 1.3% 3/24/2023 Council Workshop 4

FY24 WASTEWATER FUND EXPENDITURES INTRAFUND SERVICE FEES TRANSFER TO 16.4% GENERAL FUND 6.7% MISCELLANEOUS EXPENSES 0.4% KENT COUNTY TRANSFER TO TREATMENT FEES CAPITAL PROJECTS 57.2% 0.0% PERSONNEL SERVICES WWF PROJECTED 12.8% EXPENDITURES: MATERIALS & $10.0M RETIREE MEDICAL CONTRIBUTIONS SUPPLIES 1.9% UP $0.1M (1.0%) 0.0% ADMINISTRATIVE EXPENSES DEBT SERVICE 4.6% 0.0% 3/24/2023 Council Workshop 5

FY24 WATER FUND EXPENDITURES WF PROJECTED TRANSFER TO CAPITAL PROJECTS EXPENDITURES: 34.0% $9.6M TRANSFER TO GENERAL FUND 5.4% UP $2.3M (32.1%) INTRAFUND SERVICE FEES 18.9% MISCELLANEOUS EXPENSES DEBT SERVICE 0.6% 0.0% RETIREE MEDICAL CONTRIBUTIONS PERSONNEL 0.0% SERVICES 25.9% ADMINISTRATIVE MATERIALS & EXPENSES SUPPLIES 9.8% 5.4% 3/24/2023 Council Workshop 6

FY24 ELECTRIC FUND EXPENDITURES POWER SUPPLY & EF PROJECTED GENERATION EXPENDITURES: 68.1% $122.2M UP $3.1M (2.6%) TRANSFER TO GENERAL FUND ADMINISTRATIVE 8.3% EXPENSES TRANSFER TO 1.3% CAPITAL PROJECTS 8.2% MATERIALS & SUPPLIES INTERFUND SERVICE 0.6% PERSONNEL FEES DEBT SERVICE SERVICES 4.3% 1.3% 4.7% RETIREE MEDICAL MISCELLANEOUS STATE UTILITY TAXES CONTRIBUTIONS EXPENSES 1.4% 0.8% 1.1% 3/24/2023 Council Workshop 7

FY24 GF EXPENSE CHALLENGES – INCLUDED IN PROJECTION CAPITAL FUND WAGE EQUITY STUDY $10.9M $3.0M up $7.4M (209.1% of line item) (4.5% of total expenses) FOP MOU / CONTRACTUAL OPERATIONS INCREASES $1.5M $0.4M (2.2% of total expenses) (0.6% of total expenses) APPROPRIATION TO GENERAL PENSION FUND $4.0M up $3.0M (300.0% of line item) 3/24/2023 Council Workshop 8

FY24 UTILITY EXPENSE CHALLENGES – INCLUDED IN PROJECTION CAPITAL FUND WAGE EQUITY STUDY $15.1M $2.8M Wastewater = $2.2M (22.0% of total) Wastewater = $0.2M (2.0% of total) up $1.4M Water = $0.6M (6.3% of total) Water = $3.0M (31.3% of total) Electric = $2.0M (1.6% of total) up $2.1M Electric = $9.9M (8.0% of total) up $3.5M 3/24/2023 Council Workshop 9

FY24 ALL FUND EXPENSE CHALLENGES – NOT INCLUDED IN PROJECTIONS NEW PERSONNEL REQUESTS PROMOTION REQUESTS PENDING PENDING (strategic requests submitted to HR) (strategic requests submitted to HR) HEALTHCARE INCREASE $0.5M (9.4% increase from State) STATE PENSION PROGRAM PENDING (data submission made to State) 3/24/2023 Council Workshop 10

FY24 CHALLENGES – A DEEPER DIVE AUTOMATED TRASH TRUCK PURCHASE FY21 = $289,500 FY23 = $357,100 (23.3% increase) BUCKET TRUCK AT 37 G FY20 = $127,935 FY23 = $243,141 (90.0% increase) DIGGER TRUCK FY20 = $364,458 FY23 = $440,166 (20.8% increase) LEAD TIMES FY20 = 268 days FY23 = 900 days 3/24/2023 Council Workshop 11

FY24 CHALLENGES – A DEEPER DIVE WATER LINE REPLACEMENT PROJECTS FY19 = $179 per LF [$945,120 per mile] FY23 = $289 per LF (61.5% increase) [$1,525,920 per mile] STREET REPAVING PROJECTS FY19 = $108 per LF [$570,240 per mile] FY23 = $196 per LF (81.5% increase) [$1,034,880 per mile] 3/24/2023 Council Workshop 12

FY24 CHALLENGES – A DEEPER DIVE FLEET MAINTENANCE SUPPLIES (324 VEHICLES) FY20 = $361,437 FY21 = $399,780 (10.6% increase) FY22 = $418,748 (4.7% increase) FY23 projected = $484,876 (15.8% increase) TRANSFORMERS – 25KVA FY21 = $1,080 FY23 = $7,707 (613.6% increase) TRANSFORMERS – 50KVA FY21 = $1,308 FY23 = $9,300 (611.0% increase) TRANSFORMER LEAD TIMES FY20 = 12 weeks FY23 = 58 weeks (results in higher stock levels) 3/24/2023 Council Workshop 13

FY24 CHALLENGES – A DEEPER DIVE WAGE EQUITY STUDY FY24 = $5.8M EFFECTS = 293 employees AVERAGE PAY GRADE VARIANCE = -29.3% FOP MOU / CONTRACTUAL FY24 = $1.5M EFFECTS = 107 employees APPROPRIATION TO GENERAL PENSION FUND FY24 = $4.0M EFFECTS = all general pension fund employees indirectly HEALTHCARE INCREASE FY24 = $0.5M EFFECTS = all full time employees 3/24/2023 Council Workshop 14

NEXT STEPS EVALUATE LEVEL OF SERVICE PRIORITIZE GOALS Personnel, materials and equipment key. Develop sustainable capital program. Receive input from City Council. Receive input from City Council. SCRUB FY23 BUDGET SCRUB FY24 BUDGET Review for current savings. Review for future savings. 3/24/2023 Council Workshop 15

EXHIBIT #3 City Council Workshop of 3/24/2023 COUNCIL WORKSHOP 6.53 Budgetary Revenues and Challenges

FY24 GENERAL FUND REVENUES POLICE FINES & FEES COURT OF CHANCERY GRANTS… FEES 1.7% FRANCHISE FEES 3.8% 1.1% LICENSES & PERMITS 6.4% LIBRARY & RECREATION FEES TRANSFER TAXES 0.8% 4.4% OTHER SANITATION FEES MISCELLANEOUS 7.5% RECEIPTS 0.5% INTERFUND SERVICE FEES 16.5% GF PROJECTED PROPERTY TAXES 32.3% REVENUES PLUS BEGINNING BALANCE : $57.0M UTILITY TRANSFERS 22.2% UP $0.9M (1.6%) 3/24/2023 Council Workshop 2

FY24 WASTEWATER FUND REVENUES IMPACT FEES 4.0% GROUNDWATER INFLOW ADJUSTMENT 39.1% WWF PROJECTED REVENUES PLUS WASTEWATER BEGINNING BALANCE: TREATMENT SERVICES $13.7M 56.9% UP $1.7M (13.9%) 3/24/2023 Council Workshop 3

FY24 WATER FUND REVENUES WATER TANK SPACE IMPACT FEES LEASING 3% 6% MISCELLANEOUS SERVICE FEE 1% WF PROJECTED REVENUES PLUS BEGINNING BALANCE: $9.9M UP $1.1M (12.4%) WATER SERVICES… 3/24/2023 Council Workshop 4

FY24 ELECTRIC FUND REVENUES DIRECT SALES TO CUSTOMER 97.0% EF PROJECTED TRANSFER FROM RATE STABLIZATION REVENUES PLUS RESERVE BEGINNING BALANCE: $101.9M 10.7% MISCELLANEOUS REVENUE DOWN $36.5M (-26.4%) UTILITY TAX 1.1% 2.0% 3/24/2023 Council Workshop 5

FY24 REVENUE CHALLENGES TAX RATES SANITATION FEES 2019 = 0.440 per 100 INCREASE OF $0.3M NOT 2020 = 0.405 per 100 INCLUDED IN PROJECTIONS YET. 2021 = 0.415 per 100 2022 = 0.435 per 100 WATER / WASTEWATER RATES ELECTRIC RATES INCREASES INCLUDED IN RATE STUDY IS CURRENTLY PROJECTIONS. UNDERWAY (RESULTS PENDING). STORMWATER UTILITY INCREASE OF APPROXIMATELY $2.0M IF ADOPTED. 3/24/2023 Council Workshop 6

NORMALLY OCCURRING REVENUES ARE EQUAL TO NORMALLY OCCURRING EXPENDITURES. 3/24/2023 Council Workshop 7

FOR SUSTAINABILITY AVOID DECREASING PENSION LIABILITIES, DEFERRING INFRASTRUCTURE MAINTENANCE AND DEPLETING RESERVES. 3/24/2023 Council Workshop 8

EXHIBIT #5 City Council Workshop of 3/24/2023 City of Dover Council Workshop Vehicle Volume Summary Presentation March 24, 2023

Delawares Traffic Counts Program is a federally mandated program that is used to report traffic data to the Federal Highway Administration and to create the Annual Average Daily Traffic or AADT, which is the common indicator used to represent traffic volume on all state maintained roads. Delaware’s Traffic Counts Program consist of two parts, continuous counts and the short-term counts.

Continuous Counts Devices • ATR’s (Automated Traffic Recorders): in pavement counters • WIM’s (Weight in Motion): in pavement counters • Wavetronix: Radar Collection • Annual Data Collection statewide • All Road types: Interstates, Urban Road, Rural Roads, Etc. • Used to create the Annual Average Daily Traffic Data and support for many other projects and studies 3

Continuous ContinuousCounts Counts Devices • ATR or WIM Collection • Volume • Class • Weight • Speed

Continuous ContinuousCounts Counts Devices • Wavetronix Units Collection • Volume • Class

Continuous Counts Devices • System Detectors Collection • Volume

Short Term Counts • Pneumatic Tubes • Collects Vehicle Volume and Class Data • Counted for 7 days • 3 year cycle for each road segment • Approximately 900 counts a year 7

Vehicle Classification 8

GATEWAY • The Annual Average Daily Traffic or AADT for each road segments under Del DOT’s road inventory database are available to the public via our web based map Gateway. • This map contains the latest data published including the previous ten years. • The class and weight data are limited and is only available by special request to Del DOT’s Traffic Count Program representatives. Gateway Link: https://gateway.deldot.delaware.gov/

Gateway Information

Gateway Information

Traffic Count Program Representatives Luis R. Rios Fontanez Program Manager luis.fontanez@delaware.gov Lindsay Shockley Engineering/Planning Technician II lindsay.shockley@delaware.gov Katlyn McLean HPMS Director katlyn.mclean@delaware.gov 12

Transportation Improvement Districts (TIDs) City of Dover Council Workshop March 24, 2023

SAFETY Notes: 2022 and 2021 year-to-date columns cover the same time period as 2023, January 1 through March 20 of the respective years. Percents listed are comparing the year-to-date information from the respective year to the 2023 information 14

What is a Transportation Improvement District (TID) ?  A geographic area defined for the purpose of securing required improvements to transportation facilities in that area.  A place where land use and transportation is planned in detail in advance, such that development consistent with that planning can pay a readily determined fee and forego the Traffic Impact Study process.  Purpose is to better provide the transportation improvements needed to support land development consistent with local Comprehensive Plans. 15 DelDOT Division of Planning 03/24/2023

Why Create a Transportation Improvement District (TID) ?  Comprehensive Infrastructure Planning  TID Projects Advance in DelDOT’s CTP  TID Fees Stay Local  Equitable Treatment of Competing Developers  Known Costs for Developers  Expedited Development Reviews Main St.- Newark 16 DelDOT Division of Planning 03/24/2023

How does a TID work? A TID starts with an agreement, a “TID Agreement.” Local MPO DelDOT Government (recommended) TID Agreement Monitoring Program Infrastructure Fee (Recommended) Program Master Plan (optional) or Land Use and Transportation Plan TID-Specific Capital Transportation Program Road Improvements by Additions to DelDOT CTP (some Developers with partial developer funding) 17 DelDOT Division of Planning 03/24/2023

Dover TID History 18 DelDOT Division of Planning 03/24/2023

Dover TID History  Established with initial TID agreement in Fall 2014  Traffic counts done in 2018 after POW-MIA Parkway opened, showing improvements along US13  Evaluation of land use potential in 2020 found most larger parcels already submitted or approved for development  Agreement dissolved in early 2021  US13 and Scarborough Rd. to be monitored and addressed through Cheswold TID 19 DelDOT Division of Planning 03/24/2023

20 DelDOT Division of Planning 03/24/2023

Where are the TIDs in Delaware? o Initial agreement with boundaries Cheswold Area and 2045 horizon year signed in April 2021 o Approximately 11 square miles o 58 intersections and approximately 50 road miles o Existing conditions report completed in May 2020 o Land use forecast and traffic modeling are complete o Identifying needed improvements 21 DelDOT Division of Planning 03/24/2023

Where are the TIDs in Delaware? o Initial agreement with boundaries and 2045 horizon year approved by Kent County Levy Court in November 2021 o Approximately 25 square miles; Magnolia slightly larger than Henlopen TID Area o 60 intersections and approximately 66 road miles o Land use forecast completed; updated traffic counts collected Spring 2023; then traffic modeling 22 DelDOT Division of Planning 03/24/2023

Where are the TIDs in Delaware? o Initial agreement with boundaries and 2045 horizon year signed in April 2021 o Approximately 9/10 square mile o 11 intersections and approximately Little 16 road miles Heaven o Concept plans and cost estimates public workshop February 27, 2023 o Next is infrastructure fee program development 23 DelDOT Division of Planning 03/24/2023

Where are the TIDs in Delaware? o Initial agreement with boundaries and 2045 horizon year signed in April 2021 o Approximately 11 square miles o 8 intersections and approximately 14 road miles South o Concept plans and cost estimates Frederica public workshop February 27, 2023 o Next is infrastructure fee program development 24 DelDOT Division of Planning 03/24/2023

TID Accomplishments  5 TIDs in operations, collecting fees  8 under development with initial agreements, including 2 expected to become operational this spring  Over $12 million developer fees collected  Over $9 million in developer project construction  8 projects completed Milford 25 DelDOT Division of Planning 03/24/2023

Resources on TID Website 26 DelDOT Division of Planning 03/24/2023

Questions?  Please contact:  Sarah Coakley, AICP Sarah.coakley@delaware.gov (302) 760-2236 https://deldot.gov/Programs/transportation- improvement-districts/ 27 DelDOT Division of Planning 03/24/2023