Elgin City Council Approves Urgent 13.2% Property Tax Hike for 2026

BREAKING: Elgin residents are facing a significant financial burden as the Elgin City Council has just approved a 13.2% increase in property taxes for the upcoming year. This marks the first property tax hike in over a decade, underscoring the urgency of the city’s financial situation.

The new budget, which was finalized on December 17, 2025, will see homeowners with properties assessed at $300,000 paying an additional $180.83 annually, equivalent to $15.07 per month. Those with homes valued at $400,000 will see increases of $246.35 per year. This hike is projected to generate approximately $4.2 million more in revenue to support a total budget of $407.6 million.

City Manager Rick Kozal explained that inflationary pressures and rising public safety pension obligations necessitated the increase. “It was impossible to continue without more money,” he stated during the council’s budget review meetings. The budget also includes increased funding for capital projects, new employees, and police and fire pensions.

In addition to property taxes, residents will also experience higher fees for essential services. Water rates will increase by 9%, sewer rates will go up by 4%, and garbage fees will rise from $24.95 to $25.95 under the contract with Lakeshore Recycling Systems. Residents will also pay more for garbage stickers, increasing from $4 to $4.16.

Local resident David Teas expressed his concerns about the tax hike, particularly its impact on seniors. “Every year we are getting hit by taxes. It’s starting to hurt us,” he said, highlighting the growing financial strain on families in the community. Teas, who volunteers with the Elgin Township Senior Citizens’ Services Committee, emphasized the need for alternative solutions to alleviate the burden.

Despite exploring other revenue options, including sales and gas taxes, the council concluded that such increases could harm Elgin’s economy, as residents might shop in neighboring towns. The budget was narrowly approved with an 8-1 vote, Councilwoman Diana Alfaro dissenting. “I’ll be voting against this to be transparent with the community,” she stated.

As residents prepare for these financial changes in 2026, the urgency of the situation is clear. Elgin’s budget details are available on the city’s official website, elginil.gov.

Stay tuned for further updates as we monitor the impact of these new financial measures on the Elgin community.