UPDATE: Elgin residents will face a significant increase in their property taxes and utility fees in 2026 following a new budget approved by the Elgin City Council. The 13.2% property tax hike marks the first increase in over a decade, escalating financial burdens for homeowners.
Under the approved budget, property owners with homes valued at $300,000 will see an increase of approximately $180.83 annually, translating to an additional $15.07 per month. Those with properties assessed at $400,000 will face even higher costs, with an increase of $246.35 yearly. This budget adjustment aims to accommodate rising costs associated with public safety pensions and capital projects.
City Manager Rick Kozal cited “inflationary pressures” as a primary factor necessitating the tax increase during the council meetings held on December 17, 2025. The budget, totaling $407.6 million, anticipates collecting an additional $4.2 million from taxpayers to fund general operations, new employees, and increased police and fire pensions.
In addition to property taxes, residents will experience other fee hikes. Water rates will rise by 9% and sewer rates will increase by 4% as part of a strategy to finance essential water and sewer improvements. Garbage fees will also climb from $24.95 to $25.95, with sticker fees for excess trash rising from $4 to $4.16.
Local resident David Teas, a member of the Elgin Township Senior Citizens’ Services Committee, expressed his concern regarding the cumulative financial strain. “Every year we are getting hit by taxes. It’s starting to hurt us,” he remarked, highlighting the ongoing struggles faced by seniors in the community. Teas called for innovative solutions to alleviate the financial pressure residents are experiencing.
The council considered alternative revenue sources, including increased sales and gas taxes, but opted against these measures due to potential negative impacts on the local economy. The budget passed with an 8-1 vote, with Councilwoman Diana Alfaro dissenting. “I’ll be voting against this to be transparent with the community,” Alfaro stated, reinforcing her stance against the tax increase.
Residents can view the complete 2026 budget on the city’s official website at elginil.gov. As this urgent financial situation develops, residents are advised to prepare for the upcoming changes impacting their monthly expenses.
