Elgin residents can expect to pay more in property taxes, water and sewer rates, and garbage fees in 2026 under the new budget approved by the Elgin City Council. The property tax rate is going up by 13.2% — the first increase property tax hike in 11 years, officials said. For the owner of a home or property assessed at $300,000, the city’s portion of the tax bill will go up $180.83 per year, or $15.07 per month, according to city calculations. Someone with a property valued at $400,000 will be paying an additional $246.35. Elgin officials credited the city’s ability to maintain a flat tax rate for the decade to the concerted efforts made to diversify revenue streams. However, “inflationary pressures” made it impossible to continue without more money, City Manager Rick Kozal said during meetings at which the 2026 budget was reviewed. One area that has increased is public safety pension obligations due to more police officers retiring, officials said. Because of the tax increase, the city will collect about $4.2 million more from taxpayers to go toward the $407.6 million budget’s general operations. It will also help cover higher costs for capital projects, new employees, and police and fire pensions. Among the fee hike for next year is a 9% increase in water rates as part of a long-term plan to fund water/sewer improvements and a 4% increase in sewer rates. Garbage fees are escalating from $24.95 to $25.95 under Elgin’s contract with Lakeshore Recycling Systems. The fee, included in residents’ monthly water bills, is for regular trash, recycling and yard waste/organics collection. Garbage stickers for excess items are increasing from $4 to $4.16. Lifelong resident David Teas credited the council at its last meeting for doing a good job of not raising property taxes for more than a decade. However, he said, a hike this year coupled with higher taxes being charged by school districts and other branches of government is making it tough on residents. “Every year we are getting hit by taxes. It’s starting to hurt us,” said Teas, who volunteers with the Elgin Township Senior Citizens’ Services Committee. Seniors are very concerned, he said. “We’re struggling. We’ve got to come up with other solutions,” Teas said. The council explored the possibility of increasing other revenues, including the sales and gas taxes, but determined such a move would have a negative impact on Elgin’s economy given that people are able to go 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’ll be voting 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 freelane reporter for The Courier-News. ...read more read less