Cost increase coming to Oswego for water and sewer service to pay for Lake Michigan water project

Oswego water and sewer customers won’t see their rates increase as much as envisioned to pay for the village’s share of bringing Lake Michigan water to Oswego.

At the Nov. 7 Oswego Village Board meeting, trustees unanimously approved a new water and sewer rate ordinance to help fund the project. The village has not increased its rates since May 1, 2022.

Utility bills are expected to increase by about 4.5% to 6% annually over the next eight years. Village officials will review the costs on an annual basis to ensure the rates are adjusted accordingly.

Water rates were initially expected to more than double. A water and sewer rate study conducted earlier this year determined that the new rates are in line with other communities that receive Lake Michigan water.

Sanitary sewer and water system rates will increase starting on Jan. 1, 2024. Increases will take effect each Jan. 1 through 2031.

While rate changes will take effect in January 2024, the first utility bill to reflect the increase will be issued in March 2024.

“We’re very fortunate that the necessary rate increases are much less than we first expected when we began studying the switch to Lake Michigan water,” Oswego Village President Ryan Kauffman said in a statement. “The new rate structure will ensure a more equitable rate for all water users and cause the least amount of impact on our residents, especially seniors.”

Village officials are touting the many benefits of Lake Michigan water. They said that Lake Michigan water provides a sustainable water source.

In addition, Lake Michigan water provides soft water that allows users to dispose of water softeners and filters and that it causes minimal mineral buildup on plumbing and appliances, officials said.

Oswego’s goal to obtain Lake Michigan water through the DuPage Water Commission is on track for 2027, according to village officials. To share the cost of the project, the village is partnering with Montgomery and Yorkville.

The village’s share is estimated at about $73 million. The village entered into an escrow agreement with the DuPage Water Commission in July to begin design of the transmission main from the connection at the DWC system in Naperville to Oswego, Montgomery and Yorkville.

Federal grants and low-interest loans will help reduce the total cost of the project. In addition, a real estate transfer tax is expected to generate about $450,000 of additional revenue for the village’s water and sewer fund each year.

More information about the Lake Michigan water project is available at oswegoil.org/water.