UPDATE: The Elgin City Council has just approved a significant 13.2% property tax increase, marking the first hike in over a decade. Residents can expect to feel the financial strain in 2026 as the city grapples with rising operational costs and inflationary pressures.
Under the new budget, homeowners will see their tax bills rise by an estimated $180.83 annually for properties assessed at $300,000. Those with homes valued at $400,000 will face an increase of $246.35 per year. The tax hike will generate approximately $4.2 million for the city, contributing to a total budget of $407.6 million.
City Manager Rick Kozal emphasized that the decision was driven by “inflationary pressures” and increased public safety pension obligations as more police officers retire. “We can no longer maintain a flat tax rate without additional funding,” he stated during budget discussions.
In addition to the tax increase, fees for water and sewer services are also rising. Residents will see a 9% increase in water rates and a 4% hike in sewer rates as part of a long-term plan to improve infrastructure. Garbage collection fees will also increase from $24.95 to $25.95, while excess garbage stickers will rise from $4 to $4.16.
Local resident David Teas, who has lived in Elgin for years, expressed concern over the financial burden on families and seniors, 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, noted that many seniors are struggling to cope with rising costs.
The council’s vote on the budget was 8-1 at the meeting on December 17, 2025, with Councilwoman Diana Alfaro voting against the measure. “I’ll be voting against this to be transparent with the community,” she said, highlighting the growing discontent among residents over the tax increases.
Despite exploring other revenue sources such as sales and gas taxes, the council decided that raising these taxes would negatively impact the local economy as residents may choose to shop in neighboring communities.
This budget approval comes at a time when residents are already feeling the pinch from rising taxes imposed by local school districts and other government branches. As Elgin residents brace for these changes, the city’s budget can be reviewed in detail on the city’s official website, elginil.gov.
With financial pressures mounting, the city of Elgin is poised for a challenging year ahead. Residents are encouraged to stay informed and engage with local officials to discuss potential solutions as the community navigates these changes.
