b'City of Dover Tuscarawas County, Ohio Managements Discussion and Analysis For the Year Ended December 31, 2018 Unauditedcontractually required contribution is no longer a component of OPEB expense.Under GASB 75, the 2018 statements report OPEB expense of $1,194,349.Consequently, in order to compare 2018 total program expenses to 2017, the following adjustments are needed:Governmental Business-TypeActivities Activities TotalTotal 2018 program expenses under GASB 75 $14,671,535 $33,678,327 $48,349,862OPEB expense under GASB 75 (877,111) (317,238) (1,194,349)2018 contractually required contribution 15,628 0 15,628Adjusted 2018 program expenses13,810,052 33,361,089 47,171,141Total 2017 program expenses under GASB 45 12,857,767 32,240,896 45,098,663Increase in program expenses not related to OPEB $952,285 $1,120,193 $2,072,478Governmental ActivitiesThe funding for the governmental activities comes from several different sources, the most significant being the municipal income tax.Other prominent sources are property taxes and charges for services and sales.The Citys income tax was established by ordinance to be effective January 1, 1970, at a rate of 1 percent.In the November election of 2006, the voters voted to increase the income tax rate bypercent.There is no restriction on how the additionalpercent is to be used.The income tax accounted for a majority of total revenues for 2018.The increase in income tax revenues from the prior year is due to an increase in theestimatedreceivable.ByCityordinance,incometaxproceeds,afterincometaxdepartment expenditures, are credited to the following funds:25 percent of the net income tax to the master capital, capital projects fund and the remaining balance divided between the cemetery special revenue fund, the street maintenance and repair special revenue fund, the police and fire pension special revenue fund, and the general fund.In 2018, the City allocated 25 percent of income tax revenue to the master capital fund.This practice continues to be an excellent tool in making capital improvements, maintaining City streets and purchasing equipment.It is the plan to review the allocation to the master capital fund on a yearly basis in an effort to ensure good operating balances along with ample dollars for capital improvements.Capital grants and contributions decreased from 2017.Although the City continued to receive grant moneys for the signalization project in 2018, a larger portion of the grant monies were received for the signalization project in 2017, in addition to grants received for the riverfront project in 2017. Securityofpersonsandpropertyrepresentsthelargestexpenseofthegovernmentalactivitiesand includes the police and fire departments.The yearly expense increased from 2017 due to OPEB expense under GASB 75 and due to increases in salaries and benefits expenses.The City worked diligently to control expenses.Both of these departments are paid out of the general fund.Our fire department employs 24 full-time employees including the Chief.The City is committed to maintaining a very efficient department.Regular meetings, drills and training sessions are held.There is a strong emphasis on equipment with financial planning in place for replacement of worn equipment on a regular basis.The departments functions include firefighting, emergency medical service (including paramedicservice),firepreventioneducationandinvestigation.Thedepartmentalsocontractswith Dover Township to provide firefighting and emergency medical services.The revenues generated by this contract are reported under the charges for services area. - 11 - - 11 -'