Despite falling revenues, McHenry County stays in black

Despite a sluggish economy that continues to chip away at revenues, McHenry County was more than $2 million in the black through June, and officials are cautiously optimistic they will remain deficit-free for the rest of the fiscal year without layoffs or major spending cuts.

Ralph Sarbaugh, associate county administrator for finance, credited belt-tightening efforts by county departments and lower-than-expected health care costs for the county's strong financial position relative to many of its peers.

"We're really doing a great job of holding down expenditures," he said.

However, Sarbaugh warned the county board's finance and audit committee Tuesday that any unexpected plunge in anticipated revenues, particularly with the next rounds of property taxes, could alter the financial picture.

"If nothing goes wrong, I think we will (remain in the black)," he said. "Do I think it will be by $2 million? Probably not."

According to figures disclosed before the committee Tuesday, the county's general fund took in about $44 million in revenues through June, about 1.7 percent less than at the same time a year ago. A major part of the decline is in sales tax revenue, down about 15 percent from 2008.

But figures show the county has spent $41.6 million, allowing it to weather the economic storm so far.

County officials expect more belt-tightening for next year's budget, which goes into effect Dec. 1, but nothing like the layoffs and across-the-board cuts being mandated in Kane County and elsewhere.

"We're asking everybody to give up some ceremonial dollars, if nothing else," County Administrator Peter Austin said. "We want everyone to be part of the solution."