McHenry County Board proposes tax levy increase while also looking for spending cuts
McHenry County officials are continuing to look for ways to cut expenses and increase revenue as the county board prepares to vote on next year’s budget and a proposed property tax levy increase.
The McHenry County Board is considering whether to increase its levy to where it was before voters approved a sales tax increase to fund the county’s Mental Health Board, which came with a promise to lower the property tax levy by a commensurate amount.
The so-called “lookback” option comes as county leaders have worked to close a projected $3.7 million budget gap for next year.
On Tuesday, county board member Eric Hendricks proposed sending the budget and levy back to the county’s finance committee.
County board Chair Mike Buehler declined to take up Hendricks’ proposal, but Hendricks pressed the point. After some procedural back-and-forth, Hendricks’ effort failed.
County Administrator Peter Austin said county officials have outlined ideas for cutting spending and increasing revenue.
According to the document, some of the revenue ideas include reviewing fees charged by the health department, planning and development, and the sheriff’s office.
The “lookback” option county leaders have proposed would increase the levy to roughly $73.8 million, where it was in 2023. Austin said the current proposal includes a $1.7 million abatement – meaning taxpayers wouldn’t get charged for that amount – but the county is looking for ways to increase it.
County officials said in a news release Wednesday that the $288.8 million budget under review cuts 18 positions and “reflects many cost-saving efficiencies.”
The county’s share of residential tax bills in 2025 was about 6.5%, officials said.
“For the previous 10 fiscal years, the McHenry County Board has lowered its property tax levy despite growing inflation and unfunded state mandates – which saved taxpayers a total of $128.2 million in taxes it otherwise could have collected since the 2017 fiscal year,” according to the release.
The county’s levy was about $79.4 million in fiscal 2017 and just under $65 million in fiscal 2025, according to county records.
However, the board has taken some of the inflationary increase allowed in the past several years, and much of the decrease in the fiscal 2025 levy was thanks to the sales tax.
Members of the public who spoke on Tuesday expressed opposition to the lookback and tax increases.
The McHenry County GOP executive committee also formally came out against the proposed increase in this year’s budget and levy. The Republican Party enjoys a 15-3 supermajority on the county board.
The county GOP noted that some board members promised to hold the line on property taxes when they campaigned for office.
The county board is set to take a final vote on the budget and levy during its Nov. 18 meeting. The vote takes place ahead of the county’s new fiscal year that begins Dec. 1.