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The first reading of Elgin’s 2025-26 budget last week outlined how a modest bump for existing taxpayers and additional income from new projects will help increase revenue nearly 13%, but city leaders are still urging caution on spending.
City Council held a required public hearing Sept. 2 without any residents stepping forward to comment. The city estimates raising $7.2 million in property tax revenue — $830,490 more than last year — with a proposed tax rate climbing from 57 cents to 61.9 cents per $100 valuation.
“The taxpayer will see an increase of $135 on their tax bill, or $11 per month,” Acting Finance Director Pam Sanders said. “The proposed budget reflects a moderate and responsible outlook on revenue growth. A lower tax rate would require cuts to programs and service levels that we currently have.”
Of that added revenue, about $268,000 would come from new property included in the tax rolls, according to city documents.
Sanders said the city’s $35.3 million spending plan was developed as a “comprehensive reset of Elgin’s fiscal structure” after a detailed review of programs and services. Operating expenditures are supported by revenue generated during the fiscal year, with the exception of emergency medical services.
Public safety makes up the largest share of the city’s $18 million general fund, accounting for 35% of expenditures.
The budget funds 180 existing positions — 142 full time, 14 part time and 24 seasonal — with no new jobs added. A compensation and benefits study is scheduled to be implemented, along with a 4% cost-of-living adjustment for all employees effective January 2026.
Last month, city officials estimated that increase at $285,000, while health insurance premiums are projected to rise 8%, or about $59,000.
Interim City Manager Isaac Turner warned that Elgin’s reserves are thin, projecting just $372,000 remaining at the end of the current fiscal year and $165,000 next year.
“Off an $18 million budget, that’s woefully low,” he said.
Emergency medical service costs remain a major strain. According to city documents, expenses are expected to rise from about $112,000 to $1.29 million unless voters approve joining Emergency Services District No. 3 in November.
Turner said the new EMS plan would be supported by excess in the city’s current fund balance.
“The city really has one piece of control here, and that’s setting the tax rate,” Sanders said, noting that appraisal values are determined at the county level. “Most of what impacts a taxpayer’s bill is determined outside of the city.”
Sanders added that the budget is built on conservative revenue estimates and recommended a midyear review of the city’s fiscal health. The council is set to hold its final public hearing and vote on the proposed budget and tax rate Sept. 16.
