(a) In determining the New Castle County property tax rate for real property in a municipality, New Castle County shall consider the degree that a local service function is fully or partially performed or financially supported by the municipality instead of New Castle County under § 1102 of this title.

(b) New Castle County shall establish a property tax rate for real property in a municipality based on the degree of any local service function fully or partially performed or financially supported by the municipality instead of New Castle County under § 1102 of this title.

(c) A property tax rate for real property in a municipality does not have to be either of the following:

(1) The same as a property tax rate for property located in other municipalities or in the unincorporated area of New Castle County.

(2) The same as a property tax rate set in a prior year.

(d) [Repealed.]

83 Del. Laws, c. 7, § 3;  83 Del. Laws, c. 7, § 10; 

(a) New Castle County shall calculate the net county LSF cost for each local service function. The “net county LSF cost” equals the amount in the New Castle County budget for the local service function for the next fiscal year. The “net county LSF cost” is the amount of direct and indirect costs applicable to that local service function, and excludes service charges, grants, or other revenue or funds that New Castle County directly attributes or otherwise apportions to that local service function.

(b) Except as provided for fire protection under subsection (c) of this section, New Castle County shall convert the net county LSF cost for each local service function into a real property tax rate for each municipality and the unincorporated area by calculating each of the following for each municipality and the unincorporated area:

(1) The “share of New Castle County assessment”, which equals the taxable assessed value of all real property within a municipality or the unincorporated area divided by the aggregate taxable assessed value for all real property in the County.

(2) The “New Castle County service percentage” for a municipality, as determined under § 1102 of this title.

(3) The “weighted service share”, which equals a municipality’s or the unincorporated area’s share of New Castle County assessment multiplied by the municipality’s or the unincorporated area’s New Castle County service percentage.

(4) The “total weighted service amount”, which equals the sum of all weighted service shares.

(5) The “final service weight”, which equals a municipality’s or the unincorporated area’s weighted service share divided by the total weighted service amount.

(6) The “apportioned net LSF cost”, which equals the municipality’s or the unincorporated area’s final service weight multiplied by the net county LSF cost.

(7) The “individual LSF tax rate”, which equals the municipality’s or the unincorporated area’s apportioned net LSF cost divided by the taxable assessed value of all real property in the respective municipality or the unincorporated area, adjusted to reflect New Castle County’s estimated level of cash receipts.

(c) For fire protection that is partially financially supported but not directly provided by New Castle County and that is also partially financially supported but not directly provided by a municipality, New Castle County shall convert the net county LSF cost into a real property tax rate for each municipality and the unincorporated area that does not directly provide fire protection by calculating all of the following for each municipality and the unincorporated area:

(1) The “service area share”, which equals the taxable assessed value of real property within the municipality or the unincorporated area not directly providing fire protection divided by the sum of the taxable assessed value for all real property in the unincorporated area and all municipalities not directly providing fire protection.

(2) The “apportioned gross amount”, which equals the service area share multiplied by the net county LSF cost for fire protection.

(3) The “net New Castle County fire protection cost”, which is New Castle County’s contribution of funds or in-kind services to volunteer fire companies within New Castle County, increased by indirect costs applicable to fire protection and decreased by service charges, grants, or other revenue that New Castle County directly attributes or otherwise apportions to fire protection.

(4) The “credit percentage”, which equals the municipality’s actual direct contribution of funds or in-kind contributions of goods or services to a volunteer fire company in the previous year, divided by the municipality’s apportioned gross amount. The “credit percentage” may not exceed 100%. The “credit percentage” is 0% for the unincorporated area.

(5) The “New Castle County fire protection percentage”, which equals 100% minus the municipality’s credit percentage. The “New Castle County fire protection percentage” for the unincorporated area is 100%.

(6) The “weighted service share”, which equals the municipality’s or the unincorporated area’s service area share multiplied by the municipality’s or the unincorporated area’s New Castle County fire protection percentage.

(7) The “total weighted service amount”, which equals the sum of the weighted service shares.

(8) The “final service weight”, which equals the municipality’s or the unincorporated area’s weighted service share divided by the total weighted service amount.

(9) The “apportioned net LSF cost”, which equals the final service weight multiplied by the net county LSF cost for fire protection.

(10) The “individual fire protection tax rate” which equals the municipality’s or the unincorporated area’s apportioned net fire protection cost divided by the taxable assessed value of real property in the respective municipality or the unincorporated area, adjusted to reflect New Castle County’s estimated level of cash receipts.

(d) New Castle County shall adopt policies and procedures to implement this section.

83 Del. Laws, c. 7, § 3;  83 Del. Laws, c. 7, § 10; 

(a) By August 1 of each year, a municipality shall provide notice to New Castle County if the municipality intends to begin performing, stop performing, or change the degree of performance of a local service function, other than fire protection, during New Castle County’s fiscal year beginning the following July 1.

(b) In the notice under subsection (a) of this section, the municipality shall state with specificity which of the following modifications the municipality intends to make to its performance of the local service function:

(1) Initiating performance.

(2) Ceasing performance.

(3) Changing the degree of performance.

(c) New Castle County may request, and the municipality must provide, additional information that may reasonably be needed to understand the municipality’s proposed modification.

(d) (1) A municipality must initiate or cease performance of a local service function under § 1102(c) of this title.

(2) A municipality may change the degree of performance of a local service function that the municipality already performs by providing notice to New Castle County under subsection (a) of this section.

83 Del. Laws, c. 7, § 10; 

(a) (1) [Repealed.]

(2) By July 1 of each year, New Castle County shall provide to each municipality the forms and instructions under paragraph (a)(3) of this section to submit the municipality’s request that New Castle County recognize the following:

a. The New Castle County service percentage for a local service function is less than 100% based on the municipality’s performance or partial performance of the local service function.

b. In the case of fire protection that a municipality does not provide directly, the municipality’s direct contribution of funds or in-kind contribution of goods and services to a volunteer fire company.

(3) New Castle County shall provide a copy of each of the following:

a. New Castle County’s budget for the current fiscal year.

b. A standardized form listing each local service function and the documentation necessary to support a request that New Castle County recognize the degree to which the municipality performs or financially supports a local service function instead of New Castle County.

c. Contact information for appropriate representatives that a municipality may contact to discuss relevant financial information of New Castle County and the municipality, and the scope and nature of services provided by both entities.

(b) (1) By September 1 of each year, a municipality shall submit its application and supporting documentation to New Castle County if the municipality is requesting that New Castle County recognize either of the following:

a. New Castle County service percentage less than 100% for any local service function based on the municipality’s degree of performance of the local service function.

b. In the case of fire protection that a municipality does not provide directly, the municipality’s contribution of funds or in-kind contributions of goods and services to a volunteer fire company.

(2) New Castle County may request, and the municipality must provide, additional information that may reasonably be needed to determine the degree of performance of local service functions provided by the municipality.

(c) (1) By November 1 of each year, New Castle County shall notify each municipality of New Castle County’s determination regarding the New Castle County service percentage for each local service function and the dollar amount of direct and in-kind donations that the County will recognize to calculate the individual fire protection rate. A disagreement regarding New Castle County’s determination under this paragraph (c)(1) is subject to negotiation between New Castle County and the municipality.

(2) [Repealed.]

(d) (1) a. By December 1 of each year, a municipality that is unable to reach agreement with New Castle County regarding the New Castle County service percentage for a local service function or individual fire protection tax rate under paragraph (c)(1) of this section may provide notice to New Castle County demanding arbitration that includes the municipality’s designated member of the arbitration panel under paragraph (d)(2) of this section. If the municipality does not provide such notice by by December 1, New Castle County’s determination is final and may not be appealed.

b. [Repealed.]

(2) If arbitration is demanded under paragraph (d)(1)a. of this section, an arbitration panel will be created which is comprised of 3 members, selected as follows:

a. The municipality’s designee.

b. By December 10, the County Executive shall designate a member.

c. By December 20, the arbitration panel designees of the County Executive and the municipality shall jointly select the third member. If the 2 arbitration panel designees cannot agree on the selection of the third member by December 20, the third arbitration panel member is the Chair of the New Castle County Financial Advisory Council or the Chair’s designee.

d. The arbitration panel may establish rules for the arbitration hearing, including information required to be produced by a party and deadlines for the submission of evidence.

(3) The arbitration hearing must occur by January 31. At the hearing, New Castle County and the municipality may present testimony, evidence, and oral argument as to the matters in dispute.

(4) [Repealed.]

(5) An arbitration panel shall issue its decision by February 15. An arbitration panel’s decision is binding and may not be appealed.

(e) Notwithstanding subsections (a) through (d) and (f) of this section, either of the following may occur:

(1) New Castle County and a municipality may enter into an agreement setting different terms or timing for negotiations, calculations, or approval of the New Castle County service percentages.

(2) New Castle County may determine New Castle County service percentages for a municipality that does not make a request in the manner required under this section. New Castle County’s determination under this paragraph (e)(2) is final, may not be appealed, and is not subject to arbitration under subsection (d) of this section.

(f) New Castle County shall adopt policies and procedures to implement this section.

(g) [Repealed.]

83 Del. Laws, c. 7, § 3;  83 Del. Laws, c. 7, § 10; 

(a) New Castle County shall create the Local Service Function Review Committee ( “Committee” ) for the purpose of conducting an annual review of this subpart of this subchapter. The Committee must complete the review no later than August 3.

(b) The Local Service Function Review Committee is comprised of the following representatives:

(1) The Chief Financial Officer, or a designee, who serves as chair.

(2) One member of County Council, selected by the County Council.

(3) Two members from municipal governments in New Castle County appointed by the County Council from a list of names provided by the Delaware League of Local Governments.

(4) One member who is a resident of New Castle County and who owns real property in the unincorporated area of New Castle County, appointed by the County Council.

(c) (1) The chair of the Committee must provide the Committee with administrative support, including the preparation and distribution of meeting notices, agendas, minutes, correspondence, and reports.

(2) a. A quorum of the Committee is a majority of its members.

b. Official action by the Committee requires the approval of a quorum of the Committee.

c. The Committee may adopt rules necessary for its operation and may create working subcommittees.

d. The chair of the Committee may invite individuals with relevant expertise to participate in the Committee’s discussions.

(d) (1) The Committee shall include all of the following in the annual review under subsection (a):

a. The calculation procedure under § 1126 of this title.

b. The New Castle County service percentage or credit percentage process under § 1128 of this title.

c. Changes to the service functions that are eligible for an individual LSF tax rate under § 1128 of this title.

(2) The Committee’s review must include a specific topic under paragraph (d)(1) of this section that is requested by a municipality before June 1 of the current year.

(e) The Local Service Function Review Committee must provide an annual report containing a summary of the review conducted under this section and any recommendations for improvements to all members of the County Council, each municipality in New Castle County, all members of the General Assembly who represent New Castle County, and the Division of Research by September 15 of each year.

83 Del. Laws, c. 7, § 9; 

(a) New Castle County shall create the Local Service Function Review Committee ( “Committee” ) for the purpose of conducting an annual review of this subpart of this subchapter. The Committee must complete the review no later than August 3.

(b) The Local Service Function Review Committee is comprised of the following representatives:

(1) The Chief Financial Officer, or a designee, who serves as chair.

(2) One member of County Council, selected by the County Council.

(3) Two members from municipal governments in New Castle County appointed by the County Council from a list of names provided by the Delaware League of Local Governments.

(4) One member who is a resident of New Castle County and who owns real property in the unincorporated area of New Castle County, appointed by the County Council.

(c) (1) The chair of the Committee must provide the Committee with administrative support, including the preparation and distribution of meeting notices, agendas, minutes, correspondence, and reports.

(2) a. A quorum of the Committee is a majority of its members.

b. Official action by the Committee requires the approval of a quorum of the Committee.

c. The Committee may adopt rules necessary for its operation and may create working subcommittees.

d. The chair of the Committee may invite individuals with relevant expertise to participate in the Committee’s discussions.

(d) (1) The Committee shall include all of the following in the annual review under subsection (a):

a. The calculation procedure under § 1126 of this title.

b. The New Castle County service percentage or credit percentage process under § 1128 of this title.

c. Changes to the service functions that are eligible for an individual LSF tax rate under § 1128 of this title.

(2) The Committee’s review must include a specific topic under paragraph (d)(1) of this section that is requested by a municipality before June 1 of the current year.

(e) The Local Service Function Review Committee must provide an annual report containing a summary of the review conducted under this section and any recommendations for improvements to all members of the County Council, each municipality in New Castle County, all members of the General Assembly who represent New Castle County, and the Director and the Librarian of the Division of Legislative Services by September 15 of each year.

83 Del. Laws, c. 7, § 9;  84 Del. Laws, c. 255, § 5; 

(a) The Chief Administrative Officer and the County Executive, in the preparation of the annual operating budget, shall divide and segregate in a separate budget, entitled Local Service Function Budget, all appropriations for the performance or funding of local service functions by New Castle County within the municipalities and the unincorporated area. The Chief Administrative Officer and the County Executive, in the preparation of the Local Service Function Budget, shall specify separately the total appropriation required for the performance or funding of each local service function by New Castle County.

(b) The County Executive shall submit to the County Council a proposed revenue ordinance which will achieve sufficient revenues to balance the total operating budget, including the Local Service Function Budget. The County Executive in the preparation of the proposed revenue ordinance may not, and the County Council and the County Executive in the enactment of the annual revenue ordinance may not, impose ad valorem taxation on real property within any municipality to pay the cost of New Castle County’s performance or funding of any local service function in excess of the individual LSF tax rate or individual fire protection rate.

(c) The County Executive’s proposed budget presented to the County Council shall include tables providing all of the following information:

(1) The calculation of the proposed individual LSF tax rate and individual fire protection tax rate for each local service function for each municipality and the unincorporated area.

(2) The proposed aggregate of the individual LSF tax rates and individual fire protection tax rates for each municipality and the unincorporated area.

(d) New Castle County may also impose ad valorem taxation on real property within any municipality as follows:

(1) In any instance where a municipality initiates the performance of a local service function without the consent of New Castle County under § 1102 of this title.

(2) For the cost of operation by the County of park and recreational facilities which are not local in nature and which serve the metropolitan area.

(3) To any municipality not expending funds in the previous fiscal year for the given local service function or not adequately performing the local service function.

(e) The Chief Administrative Officer and the County Executive, in the preparation of the annual operating budget, shall divide and segregate in a separate budget entitled General Operating Budget all appropriations not properly allocable to the Local Service Function Budget or other operating budget fund. The County Council, in estimating the revenues which will be necessary for the payment of these appropriations, shall include the estimated revenues to be derived from county-wide ad valorem taxation of real property.

(f) The County Executive in the preparation of the proposed revenue ordinance, and the County Council and the County Executive in the enactment of the annual revenue ordinance, shall uniformly impose ad valorem taxation on real property within the County to pay the cost of the General Operating Budget.

9 Del. C. 1953, §  1131;  55 Del. Laws, c. 85, §  1;  71 Del. Laws, c. 401, §§  15, 21-24;  83 Del. Laws, c. 7, § 4;  83 Del. Laws, c. 7, § 5; 

(a) The Chief Administrative Officer shall annually, not later than January 1, distribute budget request forms to the County Council and for each office, department, board, or agency which is receiving or seeking to receive an appropriation from the County Council payable from any operating fund of the County.

(b) County Council and the heads of all offices, departments, boards or agencies shall enter upon the budget request forms requests for appropriations for the ensuing year and such supporting information as the Chief Administrative Officer shall have specified. The Chief Administrative Officer shall establish deadlines for the presentation of completed forms by such time and in such manner as necessary for the timely preparation and presentation of the annual operating budget.

(c) The Chief Administrative Officer shall prepare a preliminary budget for the consideration of the County Executive. The preliminary budget shall include all budget requests, the recommendations of the Chief Administrative Officer with respect to each request, an estimate of the receipts from each source of revenue, and a statement of the total estimated income and the total recommended expenditures for each operating fund.

(d) The County Executive shall review the preliminary budget and may hold hearings thereupon at which the head of all offices, departments or boards may be given an opportunity to be heard with respect to their requests. The Chief Administrative Officer shall thereupon prepare the operating budget as directed by the County Executive. The operating budget shall be presented to the County Council by the County Executive, together with a budget message outlining the County Executive’s reasons for the requested appropriations, and shall be accompanied by proposed revenue and operating budget ordinances to give effect to the budget as presented. If the estimated revenue from existing sources is deemed by the County Executive to be insufficient to balance the budget, the County Executive shall recommend revenues sufficient to achieve a balanced budget.

(e) The proposed ordinance for the operating budget shall provide appropriations in a lump sum under the following classes for each office, department, or board to which appropriations are made:

(1) Personal services of officers and employees;

(2) Contractual services;

(3) Training;

(4) Communications and utilities;

(5) Materials and supplies;

(6) Equipment;

(7) Grants and fixed charges;

(8) Debt services;

(9) Such other general classes as the County Executive or the County Council may annually establish.

(f) The operating budget and the proposed revenue and operating budget ordinances shall be submitted to the County Council not later than April 1. Sufficient copies of the operating budget shall be supplied by the County Executive to the Clerk of the County Council for distribution to members of the County Council and to interested citizens.

9 Del. C. 1953, §  1132;  55 Del. Laws, c. 85, §  1;  70 Del. Laws, c. 186, §  1;  71 Del. Laws, c. 401, §§  15, 25-27;  83 Del. Laws, c. 7, § 4; 

(a) The adoption of the operating budget ordinance is an appropriation of the sum specified in the budget for the purpose and from the funds indicated. The appropriation is valid only for the year for which it is made, and any part of an appropriation which is not encumbered or expended lapses at the end of the year.

(b) Following the adoption of the operating budget ordinance, the Chief Administrative Officer shall determine, with the approval of the County Executive, such allocation or allotment procedures as deemed appropriate for a proper administration of the budget. The head of each office, department, or board shall submit to the Chief Administrative Officer such work programs and requests for allocations and allotments as deemed appropriate for the most efficient and effective operation of each office, department or board.

(c) The approval of such allocations and allotments, in the amounts submitted or in amended amounts approved by the County Executive, shall constitute budgetary allocations and allotments which shall be binding upon such office, department, or board, and the Department of Administration shall not approve nor issue any requisition, purchase order, voucher, or check that is not in accordance with such allocation or allotment.

(d) The allocations and allotments provided in this section may be altered at the direction of the County Executive. The County Executive shall direct appropriate revisions in allocations and allotments to keep expenditures within the revenues received or anticipated.

9 Del. C. 1953, §  1133;  55 Del. Laws, c. 85, §  1;  70 Del. Laws, c. 186, §  1;  71 Del. Laws, c. 401, §§  28-31;  83 Del. Laws, c. 7, § 4;  83 Del. Laws, c. 7, § 5; 

(a) The Chief Administrative Officer shall annually prepare a capital program and a capital budget under the direction of the County Executive. In the course of the preparation of the capital program, the Chief Administrative Officer shall confer with the Department of Land Use to ascertain that the proposed capital program is in accordance with the comprehensive development plan prepared by the Department of Land Use.

(b) No later than April 1 of each year, the County Executive shall recommend to the County Council, a capital program for the ensuing 6 years and a capital budget for the ensuing year. Not later than the date that the program is submitted to County Council, the County Executive shall submit the capital program to the Department of Land Use for its review and recommendations to County Council. The County Executive shall also submit the capital program to the Planning Board for the sole purpose of determining if it is in accordance with the comprehensive development plan.

(c) The proposed capital program, and the proposed capital budget, must have the content and be in the form necessary to enable the County Council to take action as required under § 1159 of this title.

(d) (1) The County Executive, in the preparation of the capital budget, may not include in the revenue estimates any estimated revenues to be derived from ad valorem taxation of real property within a municipality for any capital appropriation including debt service which is related to the performance or funding by the County of a local service function in excess of the individual LSF tax rate or individual fire protection rate for that local service function.

(2) The County Council, in the adoption of the capital budget by ordinance, may not impose ad valorem taxation on real property within a municipality for the payment of the cost of any capital appropriation, including debt service, which is related to the performance or funding by the County of a local service function in excess of the individual LSF tax rate or individual fire protection rate for that local service function.

(3) The provisions of this subsection are not applicable to capital appropriations, including debt service, for the acquisition by the County of park and recreational facilities which are not local in nature and which serve the metropolitan area.

(e) The County Executive and the County Council, in the adoption of a capital budget by ordinance, shall uniformly impose ad valorem taxation on real property within the County for the payment of the cost of any capital appropriation, including debt service, except for costs related to the performance or funding by the County of a local service function in excess of the individual LSF tax rate or individual fire protection rate for that local service function.

9 Del. C. 1953, §  1134;  55 Del. Laws, c. 85, §  1;  71 Del. Laws, c. 401, §§  15, 32-34;  83 Del. Laws, c. 7, § 4;  83 Del. Laws, c. 7, § 5; 

The Chief Administrative Officer, under the supervision of the County Executive, shall be responsible for the administration of the capital budget as adopted by ordinance. The Chief Administrative Officer shall cause each office, department or board to take necessary action to provide for the prompt and efficient execution of the capital budget.

9 Del. C. 1953, §  1135;  55 Del. Laws, c. 85, §  1;  71 Del. Laws, c. 401, §  35;  83 Del. Laws, c. 7, § 4; 

The fiscal year of the County shall commence on July 1 of each year and conclude upon June 30 of the following year.

9 Del. C. 1953, §  1136;  55 Del. Laws, c. 85, §  1;  83 Del. Laws, c. 7, § 4; 

For the purpose of this subchapter, the term “encumbrance” shall mean a commitment for expenditure of an appropriation evidenced by a valid purchase order, similar document or process for the acquisition of supplies, material, work or services.

9 Del. C. 1953, §  1137;  55 Del. Laws, c. 85, §  1;  71 Del. Laws, c. 401, §  36;  83 Del. Laws, c. 7, § 4; 

The County Council may accept federal, state, and private grant funds. The Chief Administrative Officer shall submit to the County Council a budget, which shall not be part of the General Operating Budget or of the Capital Budget, for the expenditure of each such grant. Approval of such a budget shall constitute an appropriation of the sum specified therein for the purpose indicated. Such appropriation shall be considered valid until the funds are expended. The Chief Administrative Officer under the supervision of the County Executive shall be responsible for the administration of grant budgets.

60 Del. Laws, c. 219, §  1;  71 Del. Laws, c. 401, §§  15, 37;  83 Del. Laws, c. 7, § 4;