b'City of Dover Tuscarawas County, Ohio Notes to the Basic Financial Statements For the Year Ended December 31, 2019 Regulated AssetAs determined by the Citys Utility Board, electric rates are designed to recover the cost of providing electric serviceanditisreasonabletoassumethatthoseratescanbechargedtoandcollectedfromelectric customers.In 2013, the City incurred a share of the impaired costs related to the AMP Generating Station project (see Note 12).This specific amount will be included in future electric rates through an automatic rate adjustment clause in order for the City to recover these impaired costs from electric customers and therefore has been recorded as a regulated asset on the Citys financial statements.Budgetary ProcessAll funds, except custodial funds, are legally required to be budgeted and appropriated.There was no budget adoptedforthenonmajorlawenforcementblockgrantspecialrevenuefundin2019astherewasno budgetary activity for 2019.The major documents prepared are the tax budget, the certificate of estimated resources, and the appropriations resolution, all of which are prepared on the budgetary basis of accounting.The tax budget demonstrates a need for existing or increased tax rates.The certificate of estimated resources establishesalimitontheamountCouncilmayappropriate.TheappropriationsresolutionisCouncils authorization to spend resources and sets annual limits on expenditures plus encumbrances at the level of control selected by Council.The legal level of control has been established by Council at the object level within each department.Any budgetary modifications at this level may only be made by resolution of City Council.The certificate of estimated resources may be amended during the year if projected increases or decreases in revenue are identified by the City Auditor.The amounts reported as the original and final budgeted amounts on the budgetary statements reflect the amounts on the amended certificate of estimated resources in effect at the time original and final appropriations were passed by Council.Theappropriationresolutionissubjecttoamendmentthroughouttheyearwiththerestrictionthat appropriations cannot exceed estimated resources.The amounts reported as the original budgeted amounts reflectthefirstappropriationresolutionforthatfundthatcoveredtheentireyear,includingamounts automaticallycarriedforwardfromprioryears.Theamountsreportedasthefinalbudgetedamounts represent the final appropriation amounts passed by Council during the year.Extraordinary and Special ItemsExtraordinary items are transactions or events that are both unusual in nature and infrequent in occurrence.Special items are transactions or events that are within the control the City Administration and that are either unusual in nature or infrequent in occurrence.During 2019, the City recognized a gain of $1,073,628 on the transfer of certain sewer and water operations from Tuscarawas County which was recorded as a special item. Note 3Changes in Accounting Principles and Restatement of Fiduciary Net PositionChanges in Accounting PrinciplesTheGovernmentalAccountingStandardsBoard(GASB)recentlyissuedGASBStatementNo.95, Postponement of the Effective Dates of Certain Authoritative Guidance.The City evaluated implementing these certain GASB pronouncements based on the guidance in GASB 95.- 41 41 -'