BREAKING: Elgin residents are facing a significant financial shift as the Elgin City Council has just approved a 13.2% increase in property taxes for 2026. This marks the first property tax hike in over a decade, directly impacting homeowners across the city.
The council’s decision means that homeowners with properties assessed at $300,000 will see their city tax bill rise by $180.83 per year, equating to an additional $15.07 monthly. For those with properties valued at $400,000, the increase will be $246.35 annually. This hike will generate an estimated $4.2 million more for the city, contributing to the total $407.6 million budget for general operations, capital projects, and essential services such as police and fire pensions.
City Manager Rick Kozal cited “inflationary pressures” as the driving force behind this decision, highlighting the rising public safety pension obligations due to increased retirements among police officers. Despite previous efforts to maintain a flat tax rate, the city can no longer sustain this approach without additional revenue.
Residents will also face increased fees in various areas. Water rates are set to rise by 9%, while sewer rates will increase by 4%. Garbage collection fees will climb from $24.95 to $25.95, with additional costs for excess waste stickers rising from $4 to $4.16. These changes are part of a long-term strategy aimed at funding necessary water and sewer improvements.
Lifelong resident David Teas expressed his concerns at the council meeting, emphasizing the burden of rising taxes on residents. “Every year we are getting hit by taxes. It’s starting to hurt us,” he stated, highlighting the struggles faced particularly by seniors in the community. Teas called for new solutions to alleviate this financial strain.
The council did explore alternative revenue sources, such as increasing sales and gas taxes, but ultimately decided against it. They feared such measures would negatively impact local businesses as residents might choose to shop in neighboring areas.
The budget, which passed with a vote of 8-1 on December 17, 2025, has sparked significant discussion in the community, especially with Councilwoman Diana Alfaro voting against both the budget and the tax increase. “I’ll be voting against this to be transparent with the community,” she remarked during the meeting.
Residents can view the complete 2026 budget on the city’s official website at elginil.gov.
As this news develops, the financial implications for Elgin residents will continue to unfold. Community members are urged to stay informed and engage with local government to address these pressing issues.
