UPDATE: Elgin residents are bracing for a significant financial impact as the Elgin City Council has just approved a 13.2% increase in property taxes for the 2026 budget. This marks the first property tax hike in over a decade, pushing homeowners to pay more for essential services.
The new budget, confirmed during the council meeting on December 17, 2025, will see the city collect an additional $4.2 million from taxpayers, contributing to the overall $407.6 million budget for general operations. For homeowners with properties assessed at $300,000, this translates to an increased tax bill of $180.83 annually, or about $15.07 each month. Those with homes valued at $400,000 will face an even steeper hike of $246.35 per year.
City Manager Rick Kozal highlighted the challenges faced by the council, stating that “inflationary pressures” have made it impossible to maintain the previous flat tax rate without generating additional revenue. Increased obligations for public safety pensions due to more retirements among police officers have also contributed to the need for more funds.
In addition to the property tax increase, residents will see hikes in water and sewer rates, with water fees rising by 9% and sewer rates by 4%. Garbage collection fees will increase from $24.95 to $25.95, and the cost of garbage stickers for excess items will rise from $4 to $4.16.
Local resident David Teas, a lifelong Elgin resident, expressed concern about the cumulative tax burden on residents, particularly seniors. “Every year we are getting hit by taxes. It’s starting to hurt us,” he stated, emphasizing the need for alternative solutions to ease financial pressures on families.
The council considered other revenue options, including sales and gas taxes, but ultimately decided against them, fearing a potential negative impact on the local economy as residents could easily shop in neighboring areas.
The budget was approved with an 8-1 vote, with Councilwoman Diana Alfaro dissenting. She voiced her opposition to the property tax increase, stating, “I’ll be voting against this to be transparent with the community.”
Residents can review the complete budget details on the city’s official website at elginil.gov.
As Elgin moves forward with these changes, the community will need to adapt to the new financial landscape while officials seek ways to balance the budget without further burdening its residents. Expect ongoing discussions surrounding the implications of this budget as the city prepares for 2026.
