b'City of Dover Tuscarawas County, Ohio Managements Discussion and Analysis For the Year Ended December 31, 2018 UnauditedThe statement of net position and the statement of changes in net position provide information from a summary perspective showing the effects of the operations for the year 2018 and how they affected the operations of the City as a whole.Reporting the City of Dover as a WholeStatement of Net Position and Statement of Activities The statement of net position and the statement of activities provide summary information concerning the financial position and operations of the City as an entity.They provide a good resource for an overall evaluation of the Citys financial performance on one page.These statements include all non-fiduciary assets and liabilities using the accrual basis of accounting.This method takes into account all revenues when they are earned and all expenses when they are incurred.These transactions are booked when they occur and not when the actual cash is received for revenues or when invoices are paid for expenses.These two statements report the Citys net position and changes in that position.The change in net position is important since it is an indication of whether the financial position of the City is improving or declining.However, to properly evaluate the operation of the City, certain non-financial items should be takenintoconsideration.Theseitemswouldincludethecurrenteconomicsituationasawhole,the current tax base for the City and the age and condition of the Citys buildings and infrastructure.Inthestatementofnetpositionandthestatementofactivities,theCityisdividedintotwomajor activities:Governmental ActivitiesMost of the Citys programs and services are reported here, including generalgovernment,securityofpersonsandproperty,transportation,publichealthservices, community environment, basic utility services, and leisure time activities.Business-Type ActivitiesThese services are provided on a fee basis to recover all of the expenses of the goods or services provided.The Citys business-type activities are sewer, electric and water.Reporting on the Most Significant Funds of the City of DoverFund Financial Statements The analysis of the Citys major funds begins on page 13.The fund financial reports give a detailed report of the activities within the funds.These funds are in existence to provide a multitude of services to the citizens of Dover.Each fund is in some ways an entity unto itself.Each fund has a designed revenue stream and specific uses for the monies within the fund. In this report, the focus is on five major funds, the general fund, the master capital fund, the sewer fund, the electric fund, and the water fund.For purposes of this report, the sewer revenue and wastewater reservearereportedasthesewerfund.Likewise,theelectricrevenue,guaranteedeposit,electric replacementandimprovement,electricsystemconstruction,electricsystemcapitalreserve,electric surplus, and the municipal electric improvement are all reported under the electric fund and the water revenue, water surplus, water construction and the water replacement and improvement are reported as the water fund.Governmental FundsAll of the Citys major activities (excluding the water, sewer and electric funds) are reported in the governmental funds.This report shows how monies flow into and out of these funds and also shows what balances are available for future expenditures.The accounting method used to report this activity is the modified accrual method.This method reports cash and like-cash items that can - 6 6 -'