Elgin City Council Approves Urgent 13.2% Property Tax Hike

UPDATE: Elgin residents are facing an urgent increase in costs for 2026, as the Elgin City Council has just approved a 13.2% hike in property taxes, marking the first increase in over a decade. This decision, finalized on December 17, 2025, will significantly impact homeowners, with those owning a property assessed at $300,000 seeing their city property tax bill rise by $180.83 annually, or $15.07 monthly.

The budget, totaling $407.6 million, is set to collect an additional $4.2 million from taxpayers, primarily to cover rising costs associated with public safety pensions, capital projects, and new hires. City Manager Rick Kozal cited “inflationary pressures” as the driving force behind the tax increase, stressing that it was necessary to ensure the city can maintain essential services.

Residents will also see increases in water and sewer rates, with water fees rising by 9% and sewer rates by 4%. Garbage fees will ascend from $24.95 to $25.95, while stickers for excess waste will increase from $4 to $4.16.

Community concerns are mounting. Lifelong resident David Teas expressed frustration at the council meeting, stating, “Every year we are getting hit by taxes. It’s starting to hurt us.” He emphasized the strain on seniors who are feeling the burden of rising taxes.

The council did explore alternative revenue options, like increasing sales and gas taxes, but ultimately decided against it, fearing it would harm the local economy as residents could shop in neighboring areas.

The budget passed with an 8-1 vote, with Councilwoman Diana Alfaro opposing both the budget and the tax increase. She stated, “I’ll be voting against this to be transparent with the community.”

Elgin residents are urged to stay informed, with the full budget available for review on the city’s official website at elginil.gov. As the impacts of these changes unfold, the community will be watching closely for any further developments.