b'City of Dover Tuscarawas County, Ohio Managements Discussion and Analysis For the Year Ended December 31, 2018 UnauditedThe discussion and analysis for the City of Dovers (the Citys) financial statements provides an overall review of the financial activity of the City for the twelve months ended December 31, 2018.The intent of this discussion is to provide a narrative that describes the Citys performance as a whole.To obtain a moredetailedunderstanding,oneshouldalsoreviewthetransmittalletterandthebasicfinancial statements.Financial HighlightsFinancial highlights for 2018 are as follows:The revitalization project to the Citys Riverfront continued in 2018.Additional grants were obtained through Ohio Public Works Commission to enhance the park-like atmosphere.The City has applied for various other grants to work on making an inviting gateway from the downtown area to the Riverfront.TheCitypartneredwithOhioDepartmentofTransportationtocontinuePhaseIofatraffic signalization upgrade.Half of the City had new traffic signals installed which are connected by fiber and put on sensors for better traffic flow and safer response for safety personnel responding to emergency calls.The Citys application for Phase II has been approved.AsStatefundingisbeingcutatmanylevels,theCity hasfounditnecessarytochangeour practice of placing 40 percent of our income tax revenue into the master capital fund.Since 2012, the City has placed 25 percent of income tax collections into the fund for projects, leaving the additional 15 percent to be used for operating expenses.Severaldepartmentsbenefitedin2018fromthemastercapitalfund.TheParksDepartment replaced the roof on the concession stand, improved the concrete on the picnic shelters, purchased a new skid steer and put stone around the pond.The Police Department purchased new police cruisers.In 2018, the City also broke ground on a $1.6 million fire station.InSeptemberof2012,theCitypassedanordinanceeffectiveJanuary1,2013,toenacta3 percent lodging tax for any establishment in which 5 rooms are provided for the accommodation of guests.The monies are to be deposited into the general fund and will be used for economic developmentandtourismintheCityofDover.Requestscanbesubmittedbygroupsor organizations seeking funding for projects being completed in the City.The Dover Architectural Review Board reviews the requests and makes a recommendation to Council.As of the end of 2018, the City of Dover has distributed $76,086 since the start of the program.For2018,theCityadoptedGASBStatement75,AccountingandFinancialReportingfor Postemployment Benefits Other Than Pensions, which significantly revises accounting for costs and liabilities related to other postemployment benefits (OPEB).As a result of implementing GASB 75, the City is reporting a net OPEB liability and deferred inflows/outflows of resources related to OPEB on the accrual basis of accounting. This implementation also had the effect of restating net position at December 31, 2017, from $16,450,028 to $8,586,394 for governmental activities and from $38,856,095 to $35,753,478 for business-type activities.Using this Annual Financial ReportThis report is designed to allow the reader to look at the financial activities of the City of Dover as a whole and is intended to allow the reader to obtain a summary view or a more detailed view of the City operations, as they prefer. - 5 5 -'