COUNCIL BUDGET HEARINGS

Members of City Council met in budget hearings on May 21, 1996 at 7:00 p.m. Council members present were Council President Christiansen, Mr. Lambert, Mr. Pitts, Mr. Leary, Mr. Truitt, Mrs. Malone, Mr. Fenimore, Mr. Salters, Mr. Hare and Mayor Hutchison

Mr. Salters, Chairman of the Legislative and Finance Committee, explained that the proposed budgets were prepared by the City Manager, Finance Director, and Administrative Services Director with assistance of City staff from the various departments. The Budget totals $73.7 million in expenditures, of which $6.2 million is projected for capital expenditures. The revenues reflect improvement in the economy and growth in Dover.

Mr. O'Connor stated that the Budget was prepared and reviewed from a conservative approach both in projected expenditures and sources of revenue. The proposed Budget meets and exceeds the goals established at the onset of the budget process. The Proposed 1996/97 Budget contains no increases in property and other taxes, user fees (except for Police Extra Duty), water/wastewater rates and electric rates. The only possible increases would come from external sources such as the Kent County sewer adjustment charge for wastewater treatment. Mr. O'Connor noted that the Proposed Budget is based on a first year contract with Duke/Louis Dreyfus and that staff has projected expenditures and revenues to the best of their ability without any historical documents to use as a reference. As in the past, he reminded members that the Budget is a working document and that staff will be submitting budget amendments throughout the year.

All members of Council commended staff and relayed their appreciation for the diligent work in preparation of the Proposed Budget.

Mr. Hare moved to recommend acceptance of the proposed 1996/97 Budget as presented, seconded by Mrs. Malone

Mr. O'Connor advised the public that members of Council have had copies of the Budget for several weeks and have had an opportunity to have questions addressed by the City Manager or the involved department head prior to the budget hearings. He invited citizens to contact him should they have any questions or concerns regarding the Budget. Mr. O'Connor thanked Mr. Karia and Mrs. Tieman for the preparation of the Budget and to all department heads that worked diligently to keep their budgets as low as possible.

On a call for the question by Mr. Fenimore, the motion recommending acceptance of the 1996/97 Budget as presented was unanimously carried. Council President Christiansen noted that the Proposed Budget maintains the same rate for the upcoming tax billing. During the Council Meeting of June 10, 1996, Council will set the property tax rate, which is currently set at sixty eight and one half cents ($.685).

Council President Christiansen announced that the budget hearing scheduled for May 22, 1996 is cancelled. He reminded Council that a public hearing is scheduled for June 10, 1996 for the Electric Fund Budget. A First Reading of the budget ordinances will take place during the Council Meeting of June 10, 1996 and the Final Reading will occur during the Council Meeting of June 24, 1996.

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

Meeting Adjourned at 7:17 P.M.

                                                                       Respectfully submitted,

                                                                       Robin R. Christiansen

                                                                       Council President

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