Why Elgin could increase its general property tax levy for the first time in more than a decade

Elgin’s proposed 2026 budget calls for the city’s first increase in the general property tax levy in more than a decade.

The 13.2% levy increase will help close a $4.2 million gap in the city’s roughly $407.6 million budget, City Manager Rick Kozal said Wednesday during a special committee of the whole meeting to discuss the 2026 budget and a three-year plan.

“It is with great debate and deliberation that this recommendation for this modest increase was coming,” Kozal said. “But we thought that the property tax increase, rather than going to other revenue sources, was the most efficient and economical way to recover what is needed, that $4 million, to maintain the level of city operations.”

There are no other tax increases proposed in the 2026 budget.

Management analyst Giovanni Jungo said property taxes collected from Elgin residents are distributed among multiple local taxing bodies.

Of every dollar paid, Elgin receives 16 to 18 cents, which helps fund police and fire services and pensions, streets and infrastructure, parks and other core municipal operations.

Jungo said a home with Elgin’s median assessed value of $253,000 would see an annual increase of just over $150, or $12.50 per month.

The figure does not take into account increases that other taxing bodies may implement.

Chief Financial Officer Deb Nawrocki said even with the increase, officials anticipate expenditures to exceed revenue by about $8.8 million in 2026. The city will use reserve funds to cover the difference.

Numerous council members expressed concern about the increase and floated possible alternatives, including increases to other taxes, like those collected from retail sales or gasoline.

A final vote is expected by the Dec. 17 meeting. Elgin's fiscal year runs from Jan. 1 to Dec. 31.

“For 11 years, this organization has expanded and operated with the same flat level of revenue during that time period,” Kozal said. “All good things have to come to an end, and I’m particularly proud of what we have all collectively been able to accomplish during that time period.”

A link to Elgin’s budget can be found on the city’s homepage at elginil.gov/.