Elgin budget includes 13.2% property tax hike, fee increases

Elgin residents can expect to pay more in property taxes, water and sewer rates and trash fees in 2026 under the new budget approved by Elgin City Council.

The property tax rate is increasing 13.2 percent, the first property tax increase in 11 years, officials said.

For the owner of a home or property valued at $300,000, the city’s share of the tax bill will increase by $180.83 per year, or $15.07 per month, according to city calculations. Someone with a property valued at $400,000 will pay $246.35 more.

Elgin officials credit the city’s ability to maintain a flat tax rate through the decade to concerted efforts to diversify revenue sources. However, “inflationary pressures” made it impossible to continue the project without more money, City Manager Rick Kozal said during meetings where the 2026 budget was considered.

One area that has increased is public safety pension obligations due to the increasing number of police officers retiring, officials said.

Because of the tax increase, the city will collect about $4.2 million more from taxpayers to fund general operations of the $407.6 million budget. It will also help cover the higher costs of capital projects, new employees and pensions for police and firefighters.

Among the fee increases for next year are a 9 percent increase in water rates as part of a long-term plan to fund water and sewer improvements and a 4 percent increase in sewer rates.

Waste fees increase from $24.95 to $25.95 under Elgin’s contract with Lakeshore Recycling Systems. The fee, included in residents’ monthly water bills, is for the regular collection of trash, recycling and yard waste/organics. Trash stickers for excess items go from $4 to $4.16.

Longtime resident David Teas thanked the council at its last meeting for doing a good job of not raising property taxes for more than a decade. However, he added, a hike this year, coupled with higher taxes imposed by school districts and other branches of government, is making things difficult for residents.

“Every year we get hit with taxes. It starts to hurt us,” said Teas, who volunteers with the Elgin Township Senior Services Committee. Seniors are very worried, he said.

“We’re in trouble. We have to find other solutions,” Teas said.

The council explored the possibility of increasing other revenues, including sales and gas taxes, but determined that such a measure would have a negative impact on Elgin’s economy since people may travel to neighboring communities to make purchases.

The 2026 budget was approved 8-1 at the Dec. 17 council meeting, with Councilwoman Diana Alfaro voting no. She also voted no on the property tax increase.

“I will vote against this to be transparent with the community,” Alfaro said.

Elgin’s budget can be viewed on the city’s website, elginil.gov.

Gloria Casas is a freelance reporter for The Courier-News.