UPDATE: Elgin residents will face a 13.2% increase in property taxes under the newly approved budget for 2026, marking the city’s first tax hike in over a decade. This decision, made by the Elgin City Council on December 17, 2025, is set to impact homeowners significantly, with the owner of a property assessed at $300,000 seeing an annual increase of $180.83, translating to $15.07 monthly.
The council’s budget, totaling $407.6 million, also includes increases in water and sewer rates by 9% and 4%, respectively. Garbage fees will rise from $24.95 to $25.95, alongside an increase in garbage stickers for excess items from $4 to $4.16. These changes come as inflationary pressures and escalating public safety pension obligations weigh heavily on the city’s finances.
City Manager Rick Kozal highlighted that despite previous efforts to maintain a flat tax rate, the growing financial demands necessitated this tax increase. The city expects to collect an additional $4.2 million from taxpayers, funds that will help support general operations and cover rising costs for capital projects, new hires, and police and fire pensions.
Local resident David Teas, a lifelong Elgin citizen, expressed concerns during the council meeting, stating, “Every year we are getting hit by taxes. It’s starting to hurt us.” Teas, who volunteers with the Elgin Township Senior Citizens’ Services Committee, emphasized that seniors are particularly affected by the increasing financial burden.
The council did explore alternative revenue options, such as increases in sales and gas taxes, but ultimately decided against it, fearing it would negatively impact local economic activity as residents might shop in neighboring communities instead.
The budget passed with an 8-1 vote, with Councilwoman Diana Alfaro dissenting. She noted, “I’ll be voting against this to be transparent with the community,” reflecting concerns about the financial strain on residents.
Residents are encouraged to view the complete budget details on the city’s official website at elginil.gov. This urgent financial change will likely spark discussions among community members and local organizations as they navigate the implications of increased costs in their daily lives.
With rising taxes and fees, the community faces a critical juncture in managing its financial health. The implications of these adjustments will be felt across Elgin as residents begin planning for the year ahead.
