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Elgin council preserves local grocery tax, directs revenue to lead service line replacements
Summary
After hours of debate over fairness and budget risk, the Elgin City Council voted to continue the local 1% grocery tax and to earmark the revenue for the city nd required lead service line replacement program until that work is completed.
The Elgin City Council on Aug. 27 approved an ordinance to continue the city—% local grocery tax after Illinois moved collection of the tax to a state-controlled mechanism. Council members voted to dedicate the revenue to the city nd its lead service line replacement program until that program is complete.
City staff told the council Illinois is phasing out state collection and remittance of the local grocery tax beginning Jan. 1, 2026; unless Elgin acts, the city would lose roughly $1.2 million a year in general-fund revenue. The council adopted a motion to continue the tax as a local ordinance and then approved an amendment that would direct the revenue to the city—unded lead service…
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