UPDATE: Elgin residents will face a significant financial burden as the Elgin City Council just approved a 13.2% increase in property taxes for the 2026 budget. This marks the first property tax hike in 11 years, a move spurred by rising costs and inflationary pressures affecting city finances.
Effective January 1, 2026, homeowners with properties assessed at $300,000 will see their city tax bill rise by $180.83 annually, translating to an additional $15.07 monthly. For those owning homes valued at $400,000, the increase will be even steeper, amounting to an extra $246.35 per year.
City Manager Rick Kozal emphasized during the December 17 council meeting that despite efforts over the past decade to keep tax rates stable, “inflationary pressures” have necessitated this increase to fund essential services and growing public safety pension obligations. The city expects to collect about $4.2 million more from taxpayers, contributing to the overall $407.6 million budget for general operations.
Additionally, residents will experience hikes in water and sewer rates. Water rates are rising by 9%, while sewer rates will increase by 4%. Garbage fees will also climb from $24.95 to $25.95, with costs for excess garbage stickers increasing from $4 to $4.16.
Local resident David Teas, who volunteers with the Elgin Township Senior Citizens’ Services Committee, voiced concerns about the cumulative effect of these increases. “Every year we are getting hit by taxes. It’s starting to hurt us,” he stated, highlighting the struggles faced by seniors in the community.
The council’s decision, which passed with an 8-1 vote, reflects a careful balance between funding necessary city services and maintaining economic stability. Diana Alfaro, the lone dissenting vote, expressed her commitment to transparency, saying, “I’ll be voting against this to be transparent with the community.”
Despite exploring alternative revenue sources, including sales and gas taxes, the council determined that such measures could negatively impact local spending as residents might choose to shop in neighboring areas with lower taxes.
As the new budget takes effect, residents are urged to review the details available on the city’s website, elginil.gov. The changes are set to impact daily life in Elgin significantly, raising questions about the community’s financial future and the support for local public services.
Stay tuned for more updates as this story develops.
