City Council Workshop, Mar 18, 2026

Community Services

Key Points

• Total budget request of $38 million, a 7.28% increase, with water and sewer operations comprising 55% of the total.
• Water rate increase of 12.1% and sewer rate increase of 2%, driven primarily by $1.2 million in new debt service.
• A $20,000 allocation is included for CDL training to address staffing shortages in skilled labor positions.
• Sidewalk repair backlog estimated at $34.5 million; current CIP funding starts at $255,000 and increases by $50,000 annually, reaching $500,000 by year seven. Sidewalks are very expensive, and Dover has many sidewalks in need of repair.
• Solid waste tipping fees rising: trash at $91/ton, recycling at $199.59/ton due to transportation and processing costs.
• Recycling commodity values have dropped significantly, from $142/ton in 2021 to $16/ton in 2025, increasing city costs.
• A $3.50/ton surcharge on landfill-bound trash funds state recycling grants; Dover qualifies due to active diversion programs.
• Superfund site (landfill) liability estimated at $26 million, funded through annual budget allocations.
• Infrastructure investments include $2.27 million for pavement maintenance, $25,000 each for bridge and sidewalk repairs, $25,000 for traffic signal upgrades, and $600,000 for specialized vehicle replacements.
• Online service requests totaled over 5,500 in 2025, with QR code stickers on city vehicles and trash cans enabling direct reporting.

Council Inquiry

• Questions focused on the breakdown of rate increases, specifically the proportion attributable to debt service versus operations.
• Inquiries about staffing retention strategies, including whether a service commitment or payback agreement would be required for employees receiving city-funded CDL training.
• Requests for clarification on the total cost to repair all city sidewalks and how current funding levels compare to long-term needs.
• Interest in understanding the financial sustainability of recycling programs given rising costs and declining commodity values.

Recreation Department

Key Points

• FY2027 budget request of $4.9 million, with $3.5 million from the general fund and $1.4 million in special revenue.
• Net cost to the general fund is $2.1 million, representing approximately 1% of the city’s general fund.
• Jenny Thompson Pool renovation is on track for summer 2026 completion.
• Proposed new full-time maintenance specialist position for pool and Nebi Park facilities to reduce reliance on out-of-state contractors.
• Fee increases include modest swim lesson adjustments, a senior center fitness surcharge increase from $5 to $10, and general ice arena fee increases to cover rising operational costs.
• Special revenue funds aim to be self-sustaining, though expense growth slightly outpaces revenue.
• Private donations from Dairy Medical, Dairy Energy, and Dover Youth Hockey funded scoreboard upgrades at the ice arena at no cost to taxpayers.

Council Inquiry

• Questions about the administrative cost allocation, specifically why administration represents 28% of the general fund budget.
• Clarification sought on the distinction between general fund and special revenue fund expenditures, particularly regarding facility versus program costs.
• Concerns raised about the declining ratio of revenue to expenses in the general fund, with revenue covering 42% of expenses in FY2026 and projected at 40% in FY2027.

Financial/Strategic Outlook

• The Community Services budget increase is largely driven by debt service obligations, with contingency funds exhausted, requiring difficult trade-offs in deferred maintenance.
• Solid waste advisory committee plans a transition to automated collection using toters by July 1, 2027, with a year-long public education campaign beginning July 2026.
• Final funding source for the $149,000 Willard Pond mechanical milfoil removal contract must be identified, likely through reallocation from other maintenance projects.
• Joint workshop with the School Board scheduled for March 23, 2026, to address the $1.7 million SchoolCare health insurance assessment.
• Public hearings on property tax exemptions and CIP/bond fund reprogramming are scheduled for March 25, with final votes expected April 8, requiring two-thirds majority approval.