Elgin City Council Approves Urgent 13.2% Property Tax Hike

BREAKING NEWS: Elgin residents will face a significant financial burden in 2026 as the Elgin City Council has just approved a 13.2% increase in property taxes, the first hike in over a decade. This urgent move, confirmed during a session on December 17, 2025, will directly impact homeowners and renters alike.

Under the new budget, homeowners with properties assessed at $300,000 will see their city tax bill rise by $180.83 annually, translating to an additional $15.07 per month. Those with properties valued at $400,000 will face an even steeper increase of $246.35 per year. This tax hike is expected to generate an additional $4.2 million for the city, which will contribute to the overall $407.6 million budget aimed at covering essential services and public safety pensions.

City Manager Rick Kozal highlighted the impact of “inflationary pressures” as a core reason for this unprecedented decision. The council had successfully maintained a flat tax rate for the past decade, largely due to efforts in diversifying revenue streams. However, rising costs, particularly for public safety pensions due to increased retirements, have forced this change.

In addition to property taxes, residents will also pay more for essential services. Water rates will increase by 9%, sewer rates by 4%, and garbage fees will rise from $24.95 to $25.95. The fee for excess garbage stickers will also increase from $4 to $4.16. These adjustments are part of a long-term strategy to enhance water and sewer infrastructure.

Local resident David Teas, a lifelong Elgin inhabitant, expressed his concerns during the council’s meeting, noting the cumulative financial strain from rising taxes across various government levels. “Every year we are getting hit by taxes. It’s starting to hurt us,” Teas stated, emphasizing the worries of seniors who are particularly affected by these increases.

Despite the necessity for revenue, the council explored other options for generating funds, such as increasing sales and gas taxes. However, they determined that this would negatively impact the local economy, as residents could easily shop in neighboring communities.

The budget was approved with a vote of 8-1, with Councilwoman Diana Alfaro casting the lone dissenting vote. Alfaro stated, “I’ll be voting against this to be transparent with the community,” signaling her opposition to the tax increase.

Residents can view the full budget details on the city’s official website at elginil.gov. As the city prepares for these changes, Elgin residents are urged to plan accordingly and stay informed about the evolving fiscal landscape.

This urgent budget update is critical for all Elgin residents, as the increased financial burdens could significantly affect household budgets in the year ahead. Stay tuned for further developments.