UPDATE: Elgin residents will face a significant financial burden in 2026 as the Elgin City Council just approved a 13.2% increase in property taxes, marking the first hike in over a decade. This decision, made during a council meeting on December 17, 2025, comes amid rising costs for essential services.
Homeowners will see their annual property tax bill rise by an average of $180.83 for those with homes valued at $300,000, and by $246.35 for properties assessed at $400,000. This increase is projected to generate an additional $4.2 million for the city, which will contribute to the overall budget of $407.6 million aimed at general operations, including crucial funding for public safety pensions and infrastructure projects.
City Manager Rick Kozal attributed the necessity for this tax hike to “inflationary pressures” and the rising costs associated with public safety pensions, particularly as more police officers retire. Kozal emphasized that while the city had successfully maintained a flat tax rate for the past decade through diversified revenue streams, continuing without additional funds has become untenable.
In addition to property taxes, residents will also see increases in utility fees: water rates will surge by 9%, while sewer rates will rise by 4%. Garbage collection fees will elevate from $24.95 to $25.95 under a new contract with Lakeshore Recycling Systems, impacting monthly water bills. Furthermore, fees for garbage stickers for excess items will increase from $4 to $4.16.
Local resident David Teas, a lifelong Elgin inhabitant and volunteer with the Elgin Township Senior Citizens’ Services Committee, expressed deep concerns about the impact of these tax hikes on the community, particularly on seniors. “Every year we are getting hit by taxes. It’s starting to hurt us,” Teas stated, calling for alternative solutions to alleviate the financial strain on residents.
The council did explore raising other revenue streams, including sales and gas taxes, but ultimately decided against it, fearing it would negatively affect Elgin’s economy as residents could easily shop in neighboring communities.
The budget was passed with an 8-1 vote, with Councilwoman Diana Alfaro opposing the increase to maintain transparency with the community. She articulated her concerns during the meeting, stating, “I’ll be voting against this to be transparent with the community.”
As the 2026 budget takes effect, Elgin residents are urged to review the changes and prepare for the financial adjustments ahead. The full budget details are available on the city’s official website at elginil.gov.
This urgent update underscores the pressing need for residents to voice their concerns and seek solutions as the city navigates these significant changes.
