McHenry County government and the McHenry County Mental Health Board are ready to borrow money to cover a possible cash-flow problem at the end of May.
The County Board’s Finance Committee has voted 5-0 to authorize up to $1 million in short-term loans for the county and up to $500,000 in loans for the Mental Health Board, whose budget is included with the county’s. The full County Board is expected to approve the recommendation Thursday.
County Treasurer William LeFew said it is possible the money might not be needed. If the money is needed, the loans would be paid off after property tax payments begin arriving in June. He said he wanted early authorization to lock in interest rates, which have been rising.
LeFew stressed that the problem is the uneven flow of tax receipts and spending practices of some county departments, which sometimes make large purchases at the beginning of the year, leaving the county temporarily short of cash.
“It sounds like it’s really just a matter of the timing of spending,” said Finance Committee member John Hammerand. LeFew agreed and said he plans to hold a seminar for department managers to explain the county’s cash-flow situation.