McHenry County Board Approves $263.8M Budget, Minor Increased Tax Levy

MCHENRY COUNTY, IL — Facing a 40-year-high inflation rate that has spiked gasoline and food prices, the McHenry County Board approved a nearly $264 million budget that includes a slight increase in the tax levy.

Board members approved the balanced budget totaling $263.8 million budget which officials said was crafted in the face of rising inflation costs. County officials said in addition to rising costs for local residences at the gas pump and grocery store, the record inflation has led to “expensive, unfunded” mandates imposed by the Illinois General Assembly.

As part of the budget for 2023, county board members approved a $71.5 million tax levy, which includes a minor increase that is tied to the Consumer Price Index. The increase, which is the first in 12 years, officials said on Wednesday, totals $990,000 ­— or 1.4 percent over last year’s extension rate.

The measure to approve the budget with the tax levy increase passed by a 13-11 vote after a motion to not seek an increase but to instead balance the budget with funds from the American Rescue Plan Act failed by a with 10 voting in favor of the proposal and 14 voting against.

Officials said the increase is significantly lower than the 5 percent increase (more than $4 million) that board members could have sought under the tax cap. The tax cap, officials said, limits increasing taxes that government officials can collect based on the current rate of inflation.

Board members said that “significant challenges” brought on by the current economy forced them to seek an increase in the tax levy with the new budget. The county’s budget accounts for less than 10 percent of property owners’ tax bills each year.

“I’m disappointed that the County Board didn’t take advantage of a viable option to avoid taking the increase,” County Board Chairman Mike Buehler, R-Crystal Lake, said in a news release. “Adding the additional burden onto our residents who are already struggling with putting gas in their tank and feeding their families due to soaring inflation did not need to happen. All residents of the county would have benefitted had we avoided an increase in property taxes.”