Look for McHenry Co. tax rates to rise as property values decline

What may have seemed unimaginable a decade ago, when it was among the fastest growing areas in the nation, is now a reality: the value of property in McHenry County is heading in the wrong direction.

A pair of reports released by county offices in recent weeks show that for the first time in more than 30 years - and probably even longer - the cumulative assessed value of land and structures in the county has fallen.

A report published this month by the office of McHenry County Clerk Katherine Schultz shows the county's total equalized assessed valuation in 2009 was $10.44 billion, down from $10.53 billion in 2008.

County officials who track such numbers say they've never seen a decline in more than three decades of watching the figures.

"We didn't even see an decrease in the early '80s (recession),".

At first blush, the news may not seem all that surprising, with homes selling for less and a glut of foreclosures.

"I've been doing this since 1972, and I've never seen values go down," Schultz said. "And it's probably not going to end."

In fact, it may even get worse, said longtime County Assessor Donna Mayberry, whose recent assessment report indicates values could fall 8 percent next year.

The main, and most obvious, culprit is the still struggling economy that continues to hammer the housing industry.

But another factor appears to be a growing number of property owners challenging their assessments and, far more often than not, winning.

Last year, the county's Board of Review heard a record 4,328 challenges and, Mayberry estimates, about 90 percent of them succeeded.

"The year before I'd say about 80 percent were successful and before that, most years about 60 percent succeeded," she said.

County residents who think they might find a silver lining in the form of lower property taxes probably shouldn't count on it. While some taxing bodies will do their best to hold the line on spending, others, Mayberry said, will levy the same or slightly more than in previous years to meet their needs.

By levying the same or more, the taxing bodies force the county clerk to set a higher tax rate, allowing them to come up with the chosen amount amid declining assessed valuations.

Tax rates released by Schultz this month reflect that. After years of generally static rates, most county taxing bodies are having their rates rise slightly this year.

"The taxing bodies are going to get a certain amount of increase every year if they ask for it," Mayberry said. "Those tax dollars don't go away."

McHenry County tax rates

Taxing body

'09

'08

% change

McHenry County

0.7157

0.7014

+2.0

McHenry County Cons.

0.1775

0.1732

+2.4

Village of Algonquin

0.4839

0.4849

-0.2

Village of Barrington Hills

1.12369

0.9000

+19.9

Village of Cary

0.3797

0.3742

+1.5

Village of Fox River Grove

0.5529

0.5490

+0.7

Village of Huntley

0.4116

0.4138

-5.3

Village of Island Lake

0.4734

0.4669

+1.4

Village of Lake in the Hills

0.6717

0.6398

+4.7

Fox River Grove Dist. 3

3.9335

3.7939

+3.5

McHenry Dist. 15

3.0926

2.8836

+6.8

Cary Dist. 26

2.6982

2.6650

+1.2

Crystal Lake Dist. 47

2.7285

2.6744

+2.0

Crystal Lake Dist. 155

1.9054

71.8648

+2.1

McHenry Dist. 156

1.6245

1.5590

+4.0

Huntley Dist. 158

4.1233

4.0319

+2.2

Barrington Dist. 220 +12.0

3.4095

2.9997

+12.0

Community Dist. 300 3.9548

3.9548

3.8611

+2.4

McHenry County College

0.2740

0.2686

+1.9

Elgin Community College

0.3844

0.3006

+21.8

Harper College

0.3215

0.2561

+20.4

Cary Park District

0.5352

0.5282

+1.3

Huntley Park District

0.2922

0.2689

+8.0

Crystal Lake Park District

0.3519

70.3463

+1.6

Algonquin Area Library

0.3694

0.3643

+1.4

Barrington Library

0.1667

70.1500

+10.0

Cary Area Library

0.1708

0.1681

+1.6

Fox River Grove Library

0.3910

0.3917

-0.2

Huntley Area Library

0.2026

0.2022

+0.2

McHenry Library

0.2239

0.2161

+3.5

Wauconda Area Library

0.3413

0.3354

+1.7

Algonquin Twp.

0.0532

0.0522

+1.7

Algonquin Twp. Road

0.1171

0.1151

+1.7

Grafton Twp.

0.0591

0.0584

+1.1

Grafton Twp. Road

0.04166

0.0412

+1.1

McHenry Twp.

0.1217

0.1176

+3.3

McHenry Twp. Road

0.2210

0.2136

+3.4

Nunda Twp.

0.0737

0.0723

+1.8

Nunda Twp. Road

0.2189

0.2149

+1.8

Barrington Fire Dist.

0.3442

0.2958

+14.11

Cary Fire Dist.

0.3789

0.3735

+1.4

Fox River Grove Fire Dist.

0.5845

0.5750

+1.6

Huntley Fire Dist.

0.6111

0.6078

+0.5

McHenry Fire Dist.

0.4215

0.4085

+ 3.1

Wauconda Fire Dist.

0.4412

0.4317

+2.2

LITH Sanitary Dist.

0.0567

0.0560

+1.3

Nunda Twp. Cemetery

0.0013

0.0013

+1.7

Source: McHenry County Clerk