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PROPERTY TAX
Public hearings set for September ahead of last vote
Elgin leaders Aug. 4 continued work on the fiscal year 2026-27 budget process, considering property taxes and agreeing not to exceed the rate set by voters.
The city approved the maximum property tax rate it is allowed to consider before public hearings in September, matching the voter-approval rate of nearly 72 cents per $100 valuation. Officials stressed the vote does not lock in that amount but creates the upper boundary while staff continue preparing the proposed budget for council review.
“This does not commit the city to this tax rate,” Interim Finance Director Pamela Sanders said. “The city has the option to adopt a lower tax rate, but this will protect the city’s options.” Sanders said the city is considering a range of potential tax rates. Any rate higher than the approved maximum would trigger additional steps, including a public vote.
According to city records, the proposed maximum rate includes 60 cents for maintenance and operations — about 83% — with the remainder going toward interest and sinking debt service.
The city’s no-new-revenue tax rate is set at 63 cents, making the proposed maximum about 9 cents higher.
City Manager Robert Eads repeatedly stated the vote was procedural and should not be interpreted as the official approval of a tax increase.
“We’re not even going to contemplate going above the voter-approval rate,” he said.
Sanders noted setting the maximum rate gives the city a range to work within as the proposed budget is finalized in the coming weeks.
“This puts guardrails in for staff as we prepare the budget,” she said. “Without the guardrails, we would find a way to fund everything that was presented to you all in the workshops.”
Council members also reviewed last year’s tax rate increase, which went up from 57 cents to 61.9 cents per $100 valuation. They clarified any rate below the voter-approval threshold can be adopted by the council following the required public hearings, while a rate above that would call for additional procedures under state law.
Residents will have an opportunity to comment during public hearings Sept. 1 and Sept. 15 before the council votes on the city’s final property tax rate.
The city is required to adopt the property tax in a separate vote from the annual budget.
