The overall economic, political, structural and social outlook for Harford County remains strong, but officials acknowledge they are confronting formidable challenges this year, including costly school and public works construction, a comprehensive revamping of the zoning code and falling tax revenues from a downturn in the housing market.

In his state of the county address last week, County Executive David R. Craig asked the council to fund much-needed infrastructure and also work to boost education, public safety, land preservation and economic development.

"In order to make progress, we must take risks," Craig said. "But these risks must be planned and measured."

Council members, who must approve Craig's budget, will grapple with financing multi-million dollar projects, while facing an electorate burdened with ever-increasing taxes. Council President Billy Boniface pledged cooperation and a willingness to work on the issues, but he tempered his remarks with fiscal reality.

"The upcoming budget will be about establishing priorities, especially during this economic downturn, while facing significant costs being passed down to the counties by the state," Boniface said. "The reality is not everyone is going to get what they want."

The council, which just completed its first year, held the tax rate and was able to provide some tax relief. The seven-member panel lowered the homestead property tax credit this year by 1 percent and is planning a similar reduction in the next fiscal year, which will take the credit to 8 percent, Boniface said

With the average real estate assessment rising at least 40 percent every three years, the credit caps the amount of property tax an owner-occupant pays annually. Each jurisdiction sets its own cap.

"We understand how rising assessments have placed a burden on property owners," Boniface said, adding that the council wants to balance property tax revenues with those from commercial and industrial development.

Soon after approving the budget, the council will tackle a long-overdue rewrite of the zoning code, Boniface said.

"This new zoning code will play an important role in how the landscape of Harford County will look in the future," he said.

As Craig unveiled several initiatives that he called the cornerstone of his administration, he also stressed quality-of-life issues. He made "ensuring a safe Harford" a top priority, calling for reduction in crime and an end to gangs and illegal drug activities, primarily in Edgewood.

"We must stop the violence, the bloodshed, the killing of our citizens, particularly our youth, in our streets and neighborhoods," Craig said. "For, if we fail in Edgewood, all of Harford fails."

Councilman Dion Guthrie, whose district includes Edgewood, said he welcomed the focus on the troubled area and the increased police presence.

"We have promising new programs," Guthrie said. "We are keeping this district on everyone's radar."

Despite gaps in state school funding, Craig will move forward with an ambitious construction schedule that includes seven new schools by 2011. He also will continue working for efficient, reliable and cost-effective government, vowing "to maximize limited resources and improve services."

He tied economic development to upgrades to the county's infrastructure. Among various proposals that the council will consider are numerous roads projects, an $80 million consolidation of county agencies and expansion of office space in downtown Bel Air as well as a $340 million waste-to-energy plant in Joppa.

"Failure to make critical improvements to vital components of our infrastructure would not be in the best interest of the county," he said.

Craig's administration preserved about 1,700 acres of farmland last year and will continue its push to safeguard farms from the pressures of development. Much of the preservation revenues come from the transfer tax assessed on home sales, funds that have decreased this year.

"We have a strong desire to reach our land preservation goal of 55,000 acres by 2012," said Boniface, whose home and business are in Harford's predominantly farm district. "With transfer tax revenues significantly off, it is time to add more tools to the box."

Boniface will consider bolstering Harford's transfer of development rights program because it can benefit taxpayers and protect land, he said.

Craig will maintain efforts to contain growth within the county's development envelope, the area surrounding existing communities.

Both Craig and Boniface vowed to continue the spirit of cooperation and openness that have marked their tenure so far.

"Successful conclusions begin with open communication," Boniface said.

mary.gail.hare@baltsun.com