McHenry County Treasurer Glenda L. Miller implemented a new investment policy to maximize the interest earned on the General Fund and the Valley Hi Operating Fund balances while maintaining the safety of the funds' principals. The interest provides the County with additional revenue without increasing property taxes.
Why is it important?
- Over forty percent of McHenry County's Fiscal Year 2018 General Fund revenue comes from property taxes. In order to reduce property taxes without reducing services, it is imperative that alternative non-tax revenue sources be utilized to offset operating costs. In today's market of increasing interest rates, Treasurer Miller can apply various investment strategies to leverage fund reserves to maximize the interest earned. The result is a reliable, increasing revenue stream that does not come from taxpayers or businesses.
- The Valley Hi Enterprise Fund exists because the public approved a special tax levy to support the Valley Hi Nursing Home. Earning interest on the fund balance will provide supplemental income to support Valley Hi without raising property taxes.
Relationship to the Strategic Plan Long-Term Goal: Operate at the Lowest Possible Tax Levy
Providing quality services is expensive. While property taxes in Illinois will most likely never be eliminated, other revenue sources, like interest, can help fund the County's services so that the County may operate at the lowest possible tax levy.
The Treasurer reports the amount of interest earned on the respect funds for the year. A successful year will show increased interest revenue going forward from the implementation of the Investment Policy in May of 2015. The $1.99 million reported on the 24/7 home page represents the combined and rounded total interest earned on both the General Fund and the Valley Hi Enterprise Fund, which unrounded is $1,995,567.94 in interest earned.
|Fiscal Year||General Fund Annual Interest Earned||Valley Hi Enterprise Fund Annual Interest Earned|