County board extends tourism and EDC contracts, flags funding gap for budget process

The McHenry County board voted June 4 to extend contracts with the county's tourism organization (Naturally McHenry County / Visit McHenry County) and the McHenry County Economic Development Corporation (MCEDC), while several members pressed administration for a clear funding plan to back the commitments.

"These are important services," said Scott (county administration) in the meeting, describing the extensions as a budget priority the county would address in the upcoming budget cycle. "The ask is today to establish this as a budget priority."

Board members debated timing and funding. Multiple members noted the economic development fund that historically paid for the contracts is nearly depleted. "That fund is, at the end of this year, will be completed," said one board member during discussion; another member calculated that carrying both contracts would mean pulling roughly $300,000 from the county general fund unless alternative revenue is identified.

Representatives from the organizations outlined deliverables and the financial case. Jackie, representing Naturally McHenry County (the county's convention and visitors bureau), said the bureau's work supports $16.1 million in visitor-generated local taxes in 2024 and that the organization operates on a marketing budget of about $127,000; she noted state matching grants that amplify local spending. The county's contribution in the presented contract was $110,000 for the year, with an option year also at $110,000.

The MCEDC presenter said the agency's revenue model is diversified (county contract ~40% of revenue) and that MCEDC has helped secure confirmed capital investment and business wins; staff reported a fundraising ratio of approximately $2.60 raised for every county dollar invested in recent years and highlighted an active pipeline of prospective projects.

Despite assurances about ROI, some board members said approving contracts without a committed local revenue stream would constrain the county's 2027 budget process. Administration responded that the extensions would be treated as a budget priority and that staff will identify revenue options and bring recommendations during budget formation.

Votes: The board approved the extension for Naturally McHenry County (item 7.7) and the MCEDC extension (item 7.8). On item 7.8 Terry Porter recorded a "no" vote; the motion otherwise carried. Administration said it will present funding options as part of the county budget process.

Sources: Presentations by Naturally McHenry County and MCEDC; remarks by Scott (county administration); board roll calls recorded during the June 4 meeting.