McHenry County celebrates elite debt rating

When it comes to matters of high finance, McHenry County truly can consider itself among the elite.

The county recently earned the highest possible debt rating from Moody's Investors Service, putting it in a category with only 3 percent of the counties across the country and just two others in Illinois. McHenry is the smallest county in the nation to receive the coveted Aaa status.

So, what's it mean?

For starters, county officials said Tuesday, it is a recognition of the work they've done over the past decade to instill financial discipline and stability.

"It really shows that McHenry County is fiscally responsible, and that we really know how to manage our funds" County Board Chairman Ken Koehler said. "It says a lot of every county board member."

Perhaps just as important to county taxpayers, the rating could lead to significant savings whenever the county issues bonds or other borrowing instruments, as it may do in upcoming years to fund road projects, a proposed public safety building or a new health department facility.

Marc Munaretto, chairman of the county board's Finance and Audit Committee, said the higher rating makes the county's debt more attractive to investors. That creates more competition for county debt, which in turn leads to lower interest borrowing.

"It guarantees us the absolute lowest interest rates without having to buy insurance, so we save on interest and we save on insurance," Munaretto said.

The county's Aaa status is a far cry from where it was a little over a decade ago when the financial picture was so grim the board enacted a 15 percent across-the-board budget cut. In 2002, the county had an Aa3 rating, four full steps below its current mark.

Since then, officials said, the board has methodically instituted tight budget policies and spending controls to get its financial house in order.

"All of this was the result of orchestrated efforts to treat the finances of McHenry County much like you would treat the finances of a $250 million corporation," Munaretto said.