b'City of Dover Tuscarawas County, Ohio Managements Discussion and Analysis For the Year Ended December 31, 2019 UnauditedFor 2019, OP&F recognized a change in benefit terms for their OPEB plan.Under this new model, OP&F provides eligible retirees with a fixed stipend earmarked to pay for health care and Medicare Part B reimbursements.This new model replaced the self-insured health care plan used in prior years.These changes contributed to the Citys OP&F OPEB expense decreasing from $675,292 in 2018 to a negative OP&F OPEB expense of ($6,214,044) for 2019.Governmental 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 more than half of total revenues for 2019.The increase in income tax revenues from the prior year is mainly due to an increasein2019collections.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 2019, 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 increased from 2018.The City received contributions for the school street project and for the new fire station, as well as grants for the canal park project. Security of persons and property typically represents the largest expense of the governmental activities and includes the police and fire departments.The drastic decline in expense from 2018 was due to the decreaseinOP&FOPEBexpenseasdiscussedpreviously.TheCityworkeddiligentlytocontrol expenses.Both of these departments are paid out of the general fund.Our fire department employs 25 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.Ourpolicedepartmentisafull-time,24hoursaday,365daysayeardepartmentwith24officers, including a full-time Chief.Our street maintenance and repair and traffic department employs 13 full-time employees who provide the City and its citizens many services that include public road salting, leaf and debris pickup, paint striping and alley profiling.Transportation expenses in 2019 increased from 2018 due to an increase in depreciation expense as well as an increase in road maintenance and repair expenses.- 10 - - 10 -'