Reinventing A County Government.

• Author: Morris, Ronald A.

New Castle County is the largest of Delaware's three counties, encompassing an area of 437 square miles in the northernmost portion of the state. Delaware's largest city-Wilmington--lies within its borders, as do 12 other municipalities. Accordingly, New Castle County is also the economic engine of the state, and its government is the largest local government in Delaware.

Prior to 1967, New Castle County was governed by a Levy Court, a system of government that dates back to Colonial times. By 1960, it became clear that the Levy Court system could not adequately address the needs of the expanding, increasingly urban county. New Castle County's present form of government, with council members elected from six individual districts, and a council president and county executive elected at-large, was established in 1967.

Concurrent with the structural change, New Castle County's burgeoning population necessitated a shift in governmental responsibilities. Land-use responsibilities like planning, assessment, licenses, permits, and inspections were becoming increasingly complicated. The State of Delaware legislated that all land-use issues would be better administered at the local county level. The new county government was created primarily for this purpose.

While New Castle County's responsibilities--and subsequently its expenditures--were increased, no corresponding provisions for new revenue sources were enacted. Today, property taxes remain New Castle County's principal source of funding. With that revenue, New Castle County government manages all areas of land use, and provides residents a wide range of traditional services, including police, 911 service, paramedics, libraries, environmental services, parks, recreation, and senior centers. For fiscal year (FY) 2001, New Castle County's general fund budget is $115 million, which is part of a total operating budget of $167 million.

New Castle County's population is currently approaching a half million, an increase of nearly 33 percent since 1967. This population boom has created an overwhelming demand for county services. In the mid-1970s, the per capita costs of providing these services began outpacing per capita tax revenues. Nevertheless, throughout the '70s, '80s, and early '90s, New Castle County government was forced to expand to meet the growing population's demand for services. Consequently, the county's operating budget continued to swell.

To pay for this expansion, the county regularly raised property taxes and sewer service rates. As the costs associated with the expanding government continued to escalate, rate increases became more and more frequent. Between 1986 and 1996, the property tax rate increased 43 percent, while residential sewer service rates went up 78 percent. The incessant rate hikes did not sit well with the voting public, a fact that became painfully obvious to political candidates running for county offices in the 1996 election. While most office-seekers addressed the property tax issue in their respective campaigns, a candidate for county executive promised residents that if elected, he would not increase property taxes or residential sewer rates over the course of his four-year term. He was overwhelmingly elected county executive.

A Promise and A Plan

In...