HomeMy WebLinkAboutMcHenry County - Public Financial ReportM c H E N R Y C O U N T Y
P O P U L A R A N N U A L
F I N A N C I A L R E P O R T
F O R T H E Y E A R E N D E D
N O V E M B E R 3 0 , 2 0 2 0
P R E P A R E D B Y :
KARIN DIETZ
ASSISTANT DIRECTOR OF FINANCE -
ACCOUNTING
P R E P A R E D & A P P R O V E D B Y :
KEVIN BUESO
CHIEF FINANCIAL OFFICER
M c H E N R Y C O U N T Y I L .G O V
Introduction to PAFR . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
Organizational Structure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
Community Profile . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5-7
Major Revenues & Expenditures . . . . . . . . . . . . . . . . . . . . . . 8-9
Where the Funding Comes From . . . . . . . . . . . . . . . . . . . . 10-11
Outstanding Debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
Governing Board & Strategic Issues . . . . . . . . . . . . . . . . . . . . 13
FY20 County Initiatives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
McHenry County receives Triple Crown award for Financial Reporting
McHenry County earned a Triple Crown medallion from the Government
Finance Officers Association of the United States and Canada (GFOA) for
winning all three of the association’s annual awards for its Fiscal Year 2019
financial reports: the Certificate of Achievement for Excellence in Financial
Reporting, the Popular Annual Financial Reporting Award, and the
Distinguished Budget Presentation Award. McHenry County is one of only 292
governments that received this distinction.
T A B L E O F
C O N T E N T S
M cHENRY COUNTY, ILL INOIS PAGE 2
I N T R O D U C T I O N
T O T H E R E SI D E NT S O F Mc H E N R Y C O U NT Y
McHenry County values commitment to transparency and good governance.
To continue to provide an accurate and relevant picture of how the County
operates, I am pleased to present the County’s Popular Annual Financial
Report (PAFR) for the Fiscal Year 2020 (FY20), which ended November 30,
2020.
This report provides a summary of the County's revenue, spending, and
financial condition in a straightforward and easy-to-read format.
Governmental funds are incorporated since most of the County's basic
services are included. The report also includes supplementary information on
local conditions, strategic issues, major accomplishments, and current
county board members and elected officials.
CO U N TY A DM I N I S T R A TO R
P E T E R A US TI N
P BAUST I N @ Mc H E N R YCO U N T Y I L .GO V
81 5.3 34 .42 2 6
M cHENRY COUNTY, ILL INOIS PAGE 3
The information in this report is derived from the
County's FY20 Annual Comprehensive Financial
Report. This report is not intended to replace the
Annual Report. The PAFR omits the financial
statements on business-type activities, discretely
presented component units, proprietary funds,
and fiduciary funds, which are included in the
Annual Report.
You can view the most recent and older copies
of the Annual Report, annual budgets, audits,
and our financial dashboard anytime on
McHenry County’s website at
mchenrycountyil.gov/county-
government/departments-a-i/finance
Voters of McHenry County
County Board
Chairperson
County Board
Members
Elected
Offices
Auditor
Circuit
Clerk
Coroner
County
Clerk
Recorder
Sheriff
State's
Attorney
Superintendent
of Schools
Treasurer
County
Administrator
Administrator/
County Board
Division of
Transportation
Emergency
Mgmt. Agency
Facilities
Management
Finance
Geographic
Info. System
Human
Resources
Information
Technology
Merit
Commission
Purchasing
Senior
Services
Supervisor of
Assessments
Valley Hi
Nursing Home
Workforce
Network
Public Health
Board ETSB Board Mental Health
Board
Veteran's
Assistance
Commission
Judiciary
Health
Department
Tuberculosis
Department
Emergency
Telephone
Systems
County
Mental Health Veteran's
Assistance
Circuit Court
Administration
Public
Defender
Probation &
Court Services
Planning &
Development
O R G A N I Z A T I O N A L S T R U C T U R E
M cHENRY COUNTY, ILL INOIS PAG E 4
A b o u t M c H e n r y C o u n t y
Loc ated in the north eastern part of Illinois, McHenr y
County is home to more th an 30 co mmunitie s with
residentia l growth across the eas tern half and rolling
count ryside t o the west. Out of 1 02 c o un ties, McHe nr y
County has t he sixth lar gest popu l ation in Illinois .
The County covers an area o f 611 square mil es and is
adja ce nt to W alworth and Kenosha Count ies in Wisc o ns in
and the following counties in Illinois : L ake , Cook, Ka ne,
DeK alb, and Boone. The C o unty is 50 miles nor thwest of
Chicago and has access to I‐90 in the southw est corner of
the county. Se v eral state highway s t ransect the county,
making it acce ssi ble to areas in northern Illinois an d
southe rn Wisconsin. The Metra Union Pacific Nort hwe st
Line has seven station s in McHenry County t hat c o nn ect
residents and b us inesse s to the Nort hwe st Sub ur bs and
Chicago via com muter rail.
C O M M U N I T Y P R O F I L E
M cHENRY COUNTY, ILL INOIS P AG E 5
C i t i e s , T ow n s , & V i l l a ge s
Algonquin / Barrington Hills / Bull Valley / CaryCrystal Lake / Fox Lake / Fox River Grove / GreenwoodHarvard / Hebron / Holiday Hills / Huntley / Island LakeJohnsburg / Lake in the Hills / LakemoorMarengo / McCullom Lake / McHenry / Oakwood Hills Port Barrington / Prairie Grove / Richmond Ringwood / Spring Grove / Trout Valley / Union Wonder Lake / Woodstock
T o wns h i p s
Alden / Algonquin / Burton / Chemung / Coral / Dorr
Dunham / Grafton / Greenwood / Hartland / Hebron
Marengo / McHenry / Nunda / Richmond / Riley / Seneca
Mc Henry County Govern men t is based pr imari l y out of th e City of
Wood st o ck and c oun ty offices and t he judicial facilities are l o cated along
Illinois Route 4 7. The county is organized und er 17 townships and d i vided
into six co unty board distr icts with four representa tives electe d from ea ch
district (see pa ge 13).
McHenry County
Chicago
Springfield
Waukegan
Joliet
Peoria
Aurora
NapervilleRockford
93.1%
High School
Degree or
Higher
45,833
School
Enrollment
5.3%
Unemployment
Rate
M a j o r E m p l o y e r s
The figures below include only principal empl o y ers that are headquartered
in M cHenry County.
C O M M U N I T Y P R O F I L E
M cHENRY COUNTY, ILL INOIS PA GE 6
P o p u l a t i o n
Mc Henry County avera ged
around 307,80 0 residents this
past decad e. The County h as
seen slight i ncreases in
populat i o n s ince 2017 , despite
low er statewide tre nds. In i tial
f i gures reported from the U.S .
Census Bure au in 2 021
doc ume nt Mc H enry County's
populat i o n at 31 0,229 res idents
as of the 2020 Ce ns us . This is
an increa se of 1 ,469 residen ts
compared to the 2010 Census.
Data collected from the U.S. Census Bureau
County Population Over the Past Decade
Northwestern Medicine
District 47
District 158
County of McHenry
Follett Library Resources
Catalent Pharma Solutions Inc.
Mercy Health System
District 155*
Snap-On Tools
Stryker-Sage Products
Employer
5,000
1,528
1,500
1,400
1,378
830
732
725
590
583
Number of
Employees
Data collected from the McHenry County
Economic Development Corporation
*Employment data for District 155 was released after the County's
2020 Annual Comprehensive Financial Report was published
Type of
Industry
Health Care
Education
Education
Government
Manufacturing
Manufacturing
Health Care
Education
Manufacturing
Manufacturing
Race/Ethnicity
C O M M U N I T Y P R O F I L E
M cHENRY COUNTY, ILL INOIS PAGE 7
$240,000
Median Single Family/Condo Sales Price
79.4%
Owner-Occupied Housing
Dem o graphics
Median Household Income
Persons Below Poverty Line
Illinois
Illinois
McHenry County
McHenry County
Race
White
Black
American Indian/Alaskan Native
Asian American
Native Hawaiian/Pacific Islander
Ethnicity
Hispanic/Latino
93%
1.8%
0.5%
3%
0.1%
13.9%
Percentage
Data collected from the U.S. Census Bureau
FY20
Revenues by Source
$156.9 million
steep declines in specific charges for services such as court fees,
federal detainee program, and other health-related fees.
Grant income increased by $3.5 million and investment income decreased $1.4
million compared to FY19, in part related to impacts from the COVID-19
pandemic. In 2020, Congress passed the CARES Act, which allocated certain
funding to states and units of local governments with populations over 500,000
people. Governments with populations under 500,000, including McHenry
County, received funding from the State through the Local CURE Act. The
increase in grant revenues is directly related to the CARES Act.
B U D G E T B R E A K D O W N
The general fund is the primary
operating fund of the County and is
part of overall governmental funds.
Total general fund revenues
decreased $2 million (2.2%)
compared to FY19. Charges for
service saw the largest impact,
which decreased $4.1 million or
19.2%, from $21.4 million for fiscal
year 2019 to $17.3 million for fiscal
year 2020. Due to the impact of the
COVID-19 pandemic on the local
economy, the County experienced
G o v e r n m e n t a l
R e v e n u e s
M cHENRY COUNTY, ILL INOIS PAGE 8
Taxes
65%
Charges for
Services
16%
Operating Grants
and Contributions
18%
Investment
Income
>1%
Other
>1%
Revenues by Source
Taxes
Charges for Services
Operating Grants and
Contributions
Investment Income
Other
Total Revenue
FY20
$102,678,112
24,377,058
27, 628,625
1,385,103
807,284
$156,876,182
FY19
$103,896,796
28,050,337
18,911,729
3,924,047
924,829
$155,707,738 $1,168,444
Change (+ / –)
$(1,218,684)
(3,673,279)
8,716,896
(2,538,944)
(117,545)
B U D G E T B R E A K D O W N
M cHENRY COUNTY, ILL INOIS PA GE 9
Expenditures by Function–
Governmental Activities
General and Administrative
Community Development
Transportation
Public Safety
Judiciary and Court Related
Public Health and Welfare
Capital Outlay
Principle Retirement
Interest and Fiscal Charges
Total Expenditures
FY20
$37,409,920
4,431,283
20,463,627
39,278,016
14,315,187
22,319,727
14,758,285
1,693,152
315,568
$154,984,765 $1,060,960
Change (+ / –)
$(213,865)
956,537
5,513,456
37,003
(340,506)
(747,616)
(1,125,602)
(3,018,447)
76,938
FY19
$37,623,785
3,474,746
14,950,171
39,241,013
14,655,693
23,067,343
15,883,887
4,711,599
238,630
$153,846,867
FY20 Expenditures by
Function–Government Activities
$155 million
Public Safety
25.4%
Transportation
13.2%
General &
Administrative
24.1%Public Health &
Welfare
14.4%
Capital Outlay
9.5%
Principle Retirement
1.1%
Interest &
Fiscal Charges
>1%
Community
Development
2.9%Judiciary &
Court Related
9.2%
G o v e r n m e n t a l
E x p e n d i t u r e s
Total general fund expenditures
decreased $6 million (6.4%), from
$93.2 million in FY19 to $87.2
million in FY20. The expenditure
category with the largest
decrease was capital outlay,
which decreased from $9.4
million for FY19 to $4.5 million for
FY20 ($4.9 million, or 52.1%). This
decrease is due to the County
finalizing costs for existing
capital projects and making no
new capital purchases.
FY20 Average Resident Per Capita
Cost for Expenditures
$499.58
Total Direct Tax Rate
2016 2017 2018 2019 2020
Total Collections
2016 2017 2018 2019 2020
W H E R E T H E F U N D I N G
C O M E S F R O M
P r o p e r t y T a x
The total direct tax rate in McHenry C ounty was 0.787% in 2020, with
$68,632,669 in collected reve nue. The Count y has seen p roperty tax rates and
collections d ecre ase every year since 2017, though collections have decreas ed
mo re slowly and have averaged around $70 million the past three years.
Reductions in tax rates over the past few years were possible due to the
Count y's strong fund balanc e po sition, which made operations s ustainable
despite the resulting decreases in total collections.
M cHENRY COUNTY, ILL INOIS PAG E 10
D i v i d i n g U p t h e D o l l a r
Ever wonder where yo ur property tax dollar s go? Fo r every dollar of assessed
prope rty collected, a bout $0.08 goes to McH enry County. He re's a q ui ck
breakd own of wher e the rest of that dollar is allo c ated acro ss our county.
8.1%
McHenry County
2.6%
Township or Road Districts
8.4%
Cities, Villages, & Incorporated Towns
68.4%
School Districts
12.5%
Special Districts
(e.g., fire protection, parks,
sanitary, libraries, street lighting,
hospitals, airports, mass transit,
etc.)
Data collected from the McHenry County Assessments Office
There are several categories of sales
tax revenue for McHenry County.
The largest categories include sales
tax for general merchandise and use
tax for general merchandise and
titled/registered items.
In 2020, the sales tax rate for
general merchandise was 7%,
with 6.25% for Illinois state tax and
0.75% for the Regional
Transportation Authority.
W H E R E T H E F U N D I N G
C O M E S F R O M
Total Collections
2016 2017 2018 2019 2020
M cHENRY COUNTY, ILL INOIS P AGE 1 1
S a l e s T a x
The state use tax was 6.25% in 2020. The State distributes 4% of total state tax
collection for sales tax on general merchandise and 20% of use tax charged
on titled\registered items to counties.
The County collected around $20 million in sales taxes in 2020, trending
slightly lower than the previous three years. This is partly due to the COVID-19
pandemic's impacts on consumer spending. Online sales and use tax
collections for FY20 are also included in these figures.
Ratios of Outstanding Debt
2016 2017 2018 2019 202020152014201320122011
O U T S T A N D I N G D E B T
In FY20, excluding operating leases, the County did not borrow to fund
governmental activities. The County also did not issue new debt for business‐type
activities during FY20. The County anticipates being debt-free by 2022 as it pays
off remaining debt related to its Capital Improvement Plan. The McHenry County
Board desires the development of other ways to raise revenue and reduce costs
to meet any pending capital needs of the organization while maintaining the
required services.
Per state statute, the County is limited to issuing debt no greater than 2.875% of the
assessed value of taxable property within the County, equating to $256,537,932 in
FY20 (this limitation does not apply to debt issued for the purpose of building a
county courthouse, jail, or other necessary county buildings). Over the past four fiscal
years, the County has used 0% of its debt limit (FY17-FY20).
The County continuously monitors its outstanding debt and call dates and
proactively takes advantage of the market’s low interest rates by refunding debt
while maintaining the original debt payoff schedule. The County completed
payments on a debt certificate issued to finance the construction of a building
expansion for the McHenry County Mental Health Board. The debt was issued as
Recovery Zone Facility Bonds, allowing for a reimbursement of 45% of the interest
paid on the debt from the federal government.
M cHENRY COUNTY, ILL INOIS PAGE 12
Leadership and Governance
Organizational Advancement and Services
Quality Infrastructure
Stable Environment and Sustainability
Economic and Workforce Development
About the Board
T he Board's pr imar y f unct ion is to
establ is h the vari ous bu dgets of t he
c o unty fun ds an d adopt ordinance s and
r ule s pert aining to the manag eme nt an d
bu si ness of the county dep art men ts.
Key Strategic Issue Areas
The McHenry County Strategic Plan 2017-2020
features five key strategic issue areas and related
goals. They are:
1.
2.
3.
4.
5.
See the next page for a selected list of initiatives
the County undertook in FY20 in support of
these strategic priorities.
Want to see how well the County is meeting its
strategic goals? Check out the McHenry County
Strategic Plan Report Card at
mchenrycountyil.gov/county-
government/strategic-plan
G O V E R N I N G B O A R D &
S T R A T E G I C I S S U E S
M cHENRY COUNTY, ILL INOIS PAGE 13
County Board Chairman
Jack D. Franks
District 1
Robert Nowak
Yvonne M. Barnes
Michael Vijuk
Thomas W. Wilbeck
District 2
Suzanne M. Ness
John J. Reinert
Carolyn D. Schofield
Jeffrey T. Thorsen
District 3
Lori R. Parrish
Joseph Gottemoller
Kelli A. Wegener
Chris Christensen
District 4
Pamela J. Althoff
Kay R. Bates
Charles S. Wheeler
Stephen Doherty
District 5
Carlos J. Acosta
Michael J. Skala
John P. Jung, Jr.
Paula E. Yensen
District 6
Michael R. Aavang
James A. Kearns
Larry W. Smith
Mary T. McCann
Board Members as of November 2020
Public Safety. The Sheriff's Office
implemented a peer support team with
members from all Sheriff divisions. The
mission is to provide support to Sheriff's
Office employees. The Social Services case
manager heads the team.
F Y 2 0 M A J O R
C O U N T Y I N I T I A T I V E S
Community Development. The Planning and
Development department developed the
Neighborhood Revitalization Strategy Areas
(NRSA) for Harvard and Woodstock, which
will channel additional federal and private
funding to address the needs of these
communities' residents.
Public Health and Welfare. The Health
department expanded residential recycling
opportunities to include oil-based paints,
stains, and pharmaceuticals in addition to
electronics, batteries, clothing, document
destruction, and fluorescent bulbs at four
residential recycling events.
M cHENRY COUNTY, ILL INOIS P AG E 14
Transportation. The Division of
Transportation initiated Phase 1 preliminary
engineering on four county and township
bridge rehabilitation projects (Harmony,
West Solon, Allendale, and Flat Iron Roads)
and completed Phase 2 design engineering
on the Kishwaukee Valley Road culvert
replacement project and the Algonquin Road
flashing yellow arrow project.
INSURANCE GRA D E
IM P RO V E MENT
Community Development. The Planning and
Development department completed the
Building Code Effectiveness Grading
Schedule the ISO Insurance Services Office
administers, improving from Grade 9 to
Grade 4. This will reduce the loss experience
and insurance rate for property owners.
Transportation. The McRide system provided
more than 100,000 trips in FY20. This curb-
to-curb, demand-response public transit
service is available to riders traveling within
and between partner communities.
A a a
Finance. As of 2020, McHenry County
continues to hold the Aaa credit rating by
Moody’s Investor Service. This is the highest
rating available and puts the County in the
top tier of local governments in terms of
financial strength in both Illinois and
nationally.
Public Safety. The Sheriff's Office successfully
rolled out its new Starcom portable radios.
This was a collaborative project that the ETSB
funded to upgrade the office's antiquated
9-1-1 system.
M c H E N R Y C O U N T Y
P O P U L A R A N N UA L F I N A N C I A L R E P OR T
F O R T H E Y E A R E N D E D N O V E M B E R 3 0 , 2 0 2 0
M c H E N R Y C O U N T Y I L .G O V