County Laying Out Payment Schedule to McHenry County Economic Development Corporation to Hold EDC Harmless from Inflation

Here’s what the McHenry County Board is up to in its proposed four-year subsidy commitment to the McHenry County EDC “to establish a public/private partnership to continue a planned approach to the economic growth and development of the County outside the normal governmental structure.”

By looking at the numbers, you will see that the formula for the out years is the same that, if used for the whole budget, would maximize  the County Tax Take.

If passed as proposed, it will be yet another indication that the County Board will “Tax to the Max” after the General Election is over.

A visual representation of the economic development process in McHenry County.

The following resolution was forwarded to the Board for approval (accessible from here):

The County’s contribution to the [Economic Development] Corporation’s budget should shall be capped at the annual total sum as detailed below in Sections A. through D. (Renumbered 1-4 for formatting purposes.) Additionally, the County’s contribution shall not exceed 45% of the Corporation’s budget received revenues from other sources in Fiscal Year 2013 or in subsequent fiscal years if the option to extend the contract is exercised by the County.

If the Corporation’s budget received revenues from other sources in any fiscal year does not achieve a 55%, outside source of funding, the County will adjust the amount of its annual payment to 45% of the Corporation’s budget received revenues at the end of the first quarter’s payment of the next fiscal year as determined by audited financial statements. If the Agreement is not renewed by the County no adjustment will be pursued by the County if so needed.

Additionally, if an adjustment is required at the end of the Agreement’s extension term, no adjustment will be pursued by the County. If an adjustment is not required, the following amounts will be paid to the Corporation:

  1. The County for the period December 1, 2012 through November 30, 2013 will pay the Corporation a total sum of $166,000;
  2. The County for the period of December 1, 2013 through November 30, 2014 will pay the Corporation a total sum of $166,000, plus the Consumer Price Index or 5%, whichever is less;
  3. The County for the period of December 1, 2014 through November 30, 2015 will pay the Corporation a total sum of the period of December 1, 2013 through November 30, 2014, plus the Consumer Price Index or 5%, whichever is less;
  4. The County for the period of December 1, 2015 through November 30, 2016 will pay the Corporation a total sum of for the period of December 1, 2014 through November 30, 2015, plus the Consumer Price Index or 5%, whichever is less.

= = = = =

During the meeting the number for the first blank was revealed to be $166,114.

That number would be increased in subsequent years by the increase in the CPI, the same percentage that the county and other tax districts can increase their property tax take.

The EDC Board has 18 members.  While providing 45% of the money the taxpayers only get two members.

You can read the entire proposed contact here.


Comments

County Laying Out Payment Schedule to McHenry County Economic Development Corporation to Hold EDC Harmless from Inflation — 2 Comments

  1. This corporation was to be self sustaining; what ever happened to that?

    almost every city has their own economic development person; MCEDC is unnecessary.

    Take a look at who’s on the payroll over the years and you’ll see some familar names that pop up when there’s $$ .

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