Rockford’s 2026 budget includes fee hikes for local businesses

ROCKFORD, Ill. (WTVO) — Businesses operating in Rockford may need to prepare for higher costs in 2026, as the city plans to implement a wide range of fee increases, affecting everything from business licenses to construction permits to zoning applications.

According to a proposed 2026 Fee Schedule, recommended for approval by the City Council’s Finance and Personnel Committee, the city plans to raise rates as part of a budget strategy to maintain service levels while offsetting rising inflation and making infrastructure investments.

Key fee increases include:

  • Business Licenses and Zoning Fees:
    • Zoning verification letters will increase from $93 to $95.
    • Annual billboard license fees will rise from $145 to $150, with electronic message board licenses jumping from $708 to $729.
    • Fence permits for commercial or industrial use will go from $191 to $196.
    • Home occupation permit renewals will increase from $60 to $62.
  • Construction and Development:
    • Residential building permit minimum fees will increase from $13 to $14, with child permit fees rising from $58 to $60.
    • Site plan/use review fees for commercial, industrial, and multi-family projects will increase from $73 to $75 for remodels and from $147 to $152 for new construction.
    • Subdivision review fees will also see incremental increases, including per-lot and per-acre charges.
  • Water Utility Rates:
    • Monthly service charges for water meters will increase across all sizes. For example, a standard 5/8-inch residential meter will go from $20.05 to $21.85.
    • Consumption rates will also rise, with the first 300 cubic feet billed at $2.6497, up from $2.4309.

City officials say the increases are necessary to sustain operations and fund capital improvements, and are expected to generate an additional $1,147,850 in revenue next year…

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