b'City of Dover Tuscarawas County, Ohio Managements Discussion and Analysis For the Year Ended December 31, 2018 UnauditedMost long-term liabilities have set repayment schedules or, in the case of compensated absences (i.e. sick and vacation leave), are satisfied through paid time-off or termination payments.There is no repayment schedule for the net pension liability or the net OPEB liability.As explained previously, changes in benefits,contributionrates,andreturnoninvestmentsaffectthebalanceoftheseliabilities,butare outside the control of the local government.In the event that contributions, investment returns, and other changes are insufficient to keep up with required payments, State statute does not assign/identify the responsible party for the unfunded portion.Due to the unique nature of how the net pension liability and the net OPEB liability are satisfied, these liabilities are separately identified within the long-term liability section of the statement of net position.InaccordancewithGASB68andGASB75,theCitysstatementspreparedonanaccrualbasisof accounting include an annual pension expense and an annual OPEB expense for their proportionate share of each plans change in net pension liability (asset) and net OPEB liability, respectively, not accounted for as deferred inflows/outflows. AsaresultofimplementingGASB75,theCityisreportinganetOPEBliabilityanddeferred 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.In total, the Citys net position showed a decrease for 2018 as the increase in expenses, primarily security ofpersonsandpropertyexpensesandsewerandelectricfundexpenses,outpacedtheincreasein revenues, mainly charges for services.Although business-type activities had an increase in net position due to an increase in charges for services, governmental activities had a decrease in net position due to an increase in expenses.Capital assets decreased slightly in 2018, as depreciation expense and deletions exceeded current year additions,someofwhichincludedbreakinggroundonanewfirestation,thecontinuationofthe riverfront revitalization and the traffic signalization upgrade projects, as well as street projects, a gas turbine natural gas compressor, window replacements, water lines.Some of these projects were partially funded by grants.For governmental activities, a small increase was seen for capital assets.Total liabilities decreased from 2017, primarily due to a decrease in other amounts due in more than one year, as the City continued to pay down long-term debt.The decrease in the net pension liability was mostly offset by an increase in the net OPEB liability.The net pension liability and net OPEB liability changes represent the Citys proportionate share of the unfunded benefits of the OPERS traditional and combined plans and the OP&F plan.As indicated previously, changes in benefits, contribution rates, and return on investments affect the balances of the net pension liability and the net OPEB liability.The City of Dover makes a conscious effort to grow and maintain the Citys services and assets while paying down debt and maintaining balances to help meet current needs.- 9 9 -'