Revenue down more than expected in McHenry County

When the McHenry County Board finalized its 2009 budget last year, the nation was already in the grips of a historic economic meltdown.

But in McHenry County, at least, things have gotten worse since then. The continued decline of the local economy was reflected in the county administration's second-quarter financial report Tuesday.

The report shows that at midyear, the county has collected just 43 percent of its projected tax revenue for 2009 - not including property taxes, which start to flow in this month.

"The revenues are worse than we expected," County Administrator Pete Austin told the county board. "They've slowed down even more than we'd (projected)."

Among the revenue sources that have taken a hit this year are sales taxes, income taxes and investment income.

"We're not even getting a percentage on some of our investments," said Ralph Sarbaugh, associate county administrator of finance. "You're going to be looking at a $1 million loss just in interest."

The silver lining in Tuesday's report was that the county's department heads have been able to hold down expenses - especially personnel costs.

Department heads have kept seven full-time vacancies and eight part-time positions unfilled, saving more than $300,000 in salaries and benefits, according Sarbaugh.

The county has also saved about $600,000 by reducing its health insurance costs this year, Austin said.

Still, department heads will have to get even more creative to bring expenses in line with declining revenue, administrators cautioned county board members.

"We're no longer tapping the brakes," Sarbaugh said. "We're asking people to apply the brakes."