b'City of Dover Tuscarawas County, Ohio Managements Discussion and Analysis For the Year Ended December 31, 2018 UnauditedFor 2018, general fund appropriations were modified by Council several times.Final budgeted revenues werelessthanoriginalbudgetedrevenues,andfinalappropriationswerehigherthanoriginal appropriations due to revised estimates in several expenditure categories, primarily general government andsecurityofpersonsandproperty.Actualrevenueswereslightlyhigherthanthefinalbudgeted revenuesduetothereceiptofhigheramountsinseveralcategoriesofrevenues,mostsignificantly interest, charges for services, and other, offset by an overestimate of income tax collections.Actual expenditures were lower than the final appropriations, primarily due to conservative spending in general government, security of persons and property, and leisure time activities.All recommendations for appropriation changes come to Council from the City Auditor.The Finance Committee of Council reviews them, and they make their recommendation to the Council as a whole.Strong emphasis is placed on fund balances.The City Auditor reviews fund balances on a daily basis.Special attention is paid to the operating funds, which are the general, street maintenance and repair, cemetery, electric, sewer, and water funds.Council also receives a monthly report showing beginning fund balance for all funds at the beginning of the year, the change in the balance thus far year to date, and the current fund balance.Line item reports are reviewed regularly by the City Auditor to ensure spending is within the legal level.The managers and superintendents, as well as the Utility and Safety Service Directors, also monitor their appropriationsandfundbalancestoensuretheentireoperationoftheCityoperateswithinthe appropriations.Capital AssetsCapitalassetsfortheCityofDoverincreasedfrom2017to2018forgovernmentalactivitiesand decreased for business-type activities.The increase for governmental activities is due to numerous capital asset additions, the most significant of which is the start of the new fire station project.The decrease for business-type activities is due to current year depreciation exceeding capital asset additions.Capital asset activity for 2018 is provided in Note 10.Significant additions to capital assets for governmental activities included breaking ground on a new fire station, the continuation of the riverfront revitalization and the traffic signalization upgrade projects, as well as street projects, stone additions to the pond, picnic shelter concrete improvements, a skid steer for theparksdepartment,andseveralnewpolicecruisers.Someoftheadditionstocapitalassetsfor business-type activities included an articulating boom lift, Mayno sludge pump, portable flow meter, gas turbine natural gas compressor, window replacements, and water lines.DebtThe Citys debt balance reflected a decrease from the previous years balance.Debts were reduced as principal payments were made.The utility department carries the vast majority of the debt, the largest debt being that of the sewer utility.Utility debt includes revenue bonds, an OWDA loan, AMPGS payable, and general obligation bonds that were issued for major upgrades to the power plant.The Citys overall legal debt margin was $25,384,796 at December 31, 2018. Additional information on the Citys long-term debt can be found in Notes 12 and 13 of this report. - 14 - - 14 -'