Sunday, October 10, 2010

McHenry County Finances Appear Somewhat Better Than Two Months Ago

According to reports to the McHenry County Board, the financial picture of the County is not quite as bad as it was two months ago. But that is the result of refining previous estimates and revisions made by the department heads. There is still the problem that sales tax revenues are not as prolific as in the past.

In order to bring the original deficit down, department heads cut down on overtime, eliminated tuition reimbursements, reduced amounts for the McHenry County Extension Service and the Soil and Water Conservation District; cut back on the services of the Washington lobbyist, eliminated the Gypsy Moth program for a year, and reduce the local match for the breast and cervical cancer program through the health department.

County Government Art Enhancements
Other possible reductions include temporary suspension of the art program which was obtaining locally produced artwork for the county buildings. Funding for this was being taken from vending machine funds. Those funds are needed in the county budget.

County officials are also looking at funding the Planning and Development department inspections with federal funds and freezing of county positions. Although many positions have been frozen and vacant positions will not be filled, these may be re-examined.

Not All Employees Equal
A looming problem is the fact that some of the employees of the County are represented by a union which negotiated an increase for those employees as the Union was not willing to consider a reduction in the requested increases. As noted at the County Board meeting, this in effect produces a two-tier system among County employees. Some of the employees get raises while those who supervise them do not receive a raise. It was noted that this makes a ripe situation for considering more unionization.

Economic Development Corporation
There was also considerable discussion regarding the Economic Development Corporation which is considered a 501c3 Corporation devoted to promoting the economic health of McHenry County through retention, expansion and attraction of commerce and industry for McHenry County.

Considerable discussion ensued regarding the formation of the EDC through the municipalities and the fact that it was not successful working through government. That was why the 501c3 was formed.

The question was raised as to why McHenry County Government should be funding this organization when it is necessary to keep government costs low enough to attract businesses. It was also noted that the County provided seed money to start the EDC but there was nothing at that time determining that the funding was to continue. Comments were also made regarding the question of just what should county government be spending tax money on.

No Real Estate Taxes From Gravel Mining
Another touchy topic regarding financing is the gravel mining industry with a considerable presence in McHenry County. Some members thought that sales tax was derived from the gravel sold in McHenry County. However, it was clarified that sales tax revenue is available to the County only if the corporate office of the gravel mining company is located in McHenry County. Most of the extraction companies operating in the County have corporate offices located elsewhere in the country. The County does receive some property tax from these companies. However the value of the property is determined by the State.

As for employee compensations, discussion on this has been taking place in the Human Relations Committee where a number of options were discussed regarding raises. One-half of the County Board members are not receiving a raise. Those that are up for election this year are being offered a small raise. More on this is expected to take place at the next Human Resources Committee meeting on October 25.

Suggestions Mentioned
A suggestion was also made that Animal Control could be privatized since there are private organizations doing that type of thing along with handling adoptions of animals.

Another suggestion was that local elected officials and private citizens could advocate for the County Board in Washington rather than pay for a Washington lobbyist. There were no comments on how successful that might or might not be.

One suggestion was heard that instead of comparing to other counties, the decisions should be based on what can be afforded, similar to what is done in private industry.

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