UPDATE: Elgin residents are facing a significant financial burden as the City Council has just approved a 13.2% property tax hike for 2026, marking the first increase in over a decade. This decision, confirmed during the council meeting on December 17, 2025, means homeowners will see substantial rises in their property taxes, water rates, and garbage fees.
For a home valued at $300,000, the city’s portion of the property tax bill will climb by $180.83 annually, translating to an extra $15.07 per month. Property owners with homes assessed at $400,000 will face an increase of $246.35 per year. City officials have stated that this tax increase will generate approximately $4.2 million more for the city’s budget, which totals $407.6 million, to address escalating operational costs and public safety pension obligations.
City Manager Rick Kozal highlighted that inflationary pressures have made it necessary to raise taxes after maintaining a flat rate for the past decade. During the budget discussions, Kozal noted an increase in pension obligations due to retirements among police officers.
In addition to the property tax increase, residents will see a 9% rise in water rates and a 4% hike in sewer rates as part of a long-term strategy to fund infrastructure improvements. Garbage fees will also increase from $24.95 to $25.95, with garbage sticker prices rising from $4 to $4.16.
Residents are expressing their concerns over the financial strain. Lifelong Elgin resident David Teas voiced his frustration during the council meeting, stating, “Every year we are getting hit by taxes. It’s starting to hurt us.” He emphasized that seniors are particularly affected, saying, “We’re struggling. We’ve got to come up with other solutions.”
Despite exploring alternative revenue sources like sales and gas taxes, council members concluded that such measures could negatively impact Elgin’s economy, as residents might choose to shop in neighboring communities. The budget passed with an 8-1 vote, with Councilwoman Diana Alfaro dissenting due to concerns about transparency with the community.
Residents can view the full budget on the city’s official website at elginil.gov. As the city prepares for these financial changes, residents are urged to stay informed and prepared for the increased costs that will take effect in 2026.
This urgent budget update highlights a crucial moment for Elgin residents, as they navigate rising taxes and fees in an already challenging economic climate.
