Elgin general property tax levy to stay flat, but water and sewer rates could go up in 2025

Elgin’s general property tax levy is expected to stay flat for an 11th consecutive year, but residents could pay more for water and sewer services in 2025 to fund infrastructure improvements.

City Manager Rick Kozal presented an overview of the proposed 2025 budget and three-year financial plan to Elgin City Council members on Wednesday.

Kozal said operational efficiencies, personnel reassessment, and budgetary discipline by department leaders were contributing factors in keeping the general operating levy flat while still being able to plan for improvements to the quality of life opportunities for residents.

“The proposed 2025 budget and financial plan continues the city’s commitment to investing in services, infrastructure, capital improvements and recreational and entertainment amenities that have defined Elgin’s continuing growth and financial health,” Kozal said.

Upgrades and additions to the Hemmens Cultural Center and Elgin Sports Complex, as well as the revitalization of DuPage Court, will be completed in 2025.

The proposed budget includes improvements for Wing Park and funding for design and engineering work to replace the Kimball Street and Chicago Street bridges. Construction is slated to take place from 2026 to 2028 on Kimball and 2028-30 on Chicago Street.

The cost to replace both bridges is expected to be about $41 million, but the city hopes to obtain grants that could cover roughly 80% of the price tag.

Elgin also plans to add more employees to keep up with the city’s burgeoning population on the west side.

“Elgin has not stopped growing,” Kozal said.

As proposed, the fire department would add another full-time ambulance to Station 3 and hire nine firefighter/paramedics to staff it. The police department would hire two records clerks and a new lieutenant.

Staff also would be added to the building, communications, cultural arts and special events, marketing and water departments.

While the general property tax levy would remain flat, the combined property tax levy, which includes general government operations, debt obligations and public safety pensions, is expected to increase by 2.9% in 2025, driven by rising pension costs. The combined property tax levy is approximately 18% of Elgin’s total property tax bill.

Residents could see an increase in water and sewer rates to pay for a number of capital improvements, including enhanced water main replacement, adding deep wells, possible modifications to the Fox River water intake and improvements to combat forever chemicals.

If approved, water rates will increase by 9.5% and sewer rates by 4% in 2025.

“Despite these increases, however, the city’s water and sewer rates remain absolutely competitive with similar communities in the Chicago metropolitan area,” Kozal said.

The city also will look to extend the Central Area TIF, which expires in 2025, for an additional 12 years.

The city has an online budget book available for residents at city-elgin-il-budget-book.cleargov.com/17259/budget-overview/mayor-and-city-council.

Budget discussions will start next Wednesday, Nov. 13, and happen through Dec. 4. A vote to adopt the budget is expected to occur on Dec. 18.