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October 17, 2024 - DuPage Water Commission signs agreements with Oswego, Montgomery and Yorkville

The Village of Oswego is pleased to announce the DuPage Water Commission has signed contracts with Oswego, Montgomery and Yorkville to provide Lake Michigan water to our communities. Read the Village of Oswego's press release here and the DuPage Water Commission's press release below.

October 2, 2024 - Four agreements with the DuPage Water Commission

At its October 1 meeting, the Village Board approved four key agreements to facilitate the Village’s membership in the DuPage Water Commission (DWC) and to advance to the construction phase of the project. The agreements stipulate the terms for the water purchase and sale contract, financing, connection facilities, and a capital cost recovery charge (or buy-in to the DWC).

The agreements require Oswego, Montgomery and Yorkville each to pay their respective buy-in costs along with their proportional share of extending the DWC system to Kendall County. The three communities will establish an escrow account to ensure that funds are available to pay for the full cost of the necessary infrastructure.  The escrow account also provides that DWC will make available a line of credit up to $7 million for each community should there be a need for emergency or bridge financing.

In addition, the DWC has offered to provide a 0% interest loan to Oswego to pay for the $11,047,790 capital cost recovery charge, which is the required buy-in to join the DWC.  As an alternative, this agreement allows Oswego to contribute to the upsizing of the transition main from 48” to 54” to serve future DWC customers, off-setting the DWC buy-in cost.

For over a decade, the Village of Oswego, along with the United City of Yorkville and the Village of Montgomery, has faced significant challenges regarding water supply, as highlighted by the Illinois State Water Survey's warnings about the depletion of the region’s aquifer. With Village wells already experiencing declining production and at risk of becoming inoperable as soon as 2033, the need for an alternative water source has become critical.

Next steps include securing project financing, initiating bidding and commencing construction. Bidding is slated to begin by the end of 2024, with construction set to kick off in early 2025, lasting until late 2027, leading up to the switchover to Lake Michigan water in spring or summer of 2028.

The Village continues to find ways to offset the cost of the project to residents. Federal grants and low-interest loans will help reduce the total cost of the project, as well as continued revenue from the Village’s real estate transfer tax. In addition, a water rate study was conducted in 2023, and a new rate structure was approved. A portion of the new rate structure took effect in January 2024 and new measures will be implemented each year through 2031 to help offset the impact to residents.  

August 8, 2024 - Next steps and water corrosion testing

The Village of Oswego is partnering with the Village of Montgomery, the United City of Yorkville and the DuPage Water Commission to bring Lake Michigan water to our community. Studies have shown that without the connection, Oswego’s wells could be inoperable within the next 10 years. All three communities have agreed on the pipeline route and the following cost allocation: 35.36% Oswego, 24.42% Montgomery and 40.22% Yorkville. 

Engineering has begun and the next steps are to join the DuPage Water Commission and establish a funding agreement to cover construction costs. The goal is to start taking Lake Michigan water in 2028. To help offset project costs, the Village has been working to leverage federal and state money, including applying for grants and loans.

Corrosion control study

To ensure a smooth and safe connection to Lake Michigan water, corrosion testing is being performed on pipes from Oswego, Montgomery and Yorkville. The US Environmental Protection Agency (EPA) and the Illinois EPA require this study when a municipality changes its water source. By conducting this study, the Village will better understand how Lake Michigan water will interact with our existing pipes and identify steps we need to take to protect our residents. 

The contractor, Cornwell Engineering Group, has developed a pipe rig with water from the three communities being run through the respective pipes. It will take approximately six months to acclimate the pipes to well water from each town and then Lake Michigan water will be introduced. Oswego has nine pipes on the rig. When the testing has concluded, Cornwell will analyze the results and recommend the best treatment options, as needed, to the municipalities.  

May 25, 2024 - Cost agreement with three municipalities 

The Village of Oswego is partnering with the Village of Montgomery, the United City of Yorkville and the DuPage Water Commission to bring Lake Michigan water to our community. Studies have shown that without the connection, Oswego’s wells could be inoperable within the next 10 years.

Recently the three communities met to prepare an agreement for the pipeline route and the project’s cost distribution. The proportion of water usage and the proximity of pipes to the current endpoint in Naperville for all three were averaged to determine each community’s share.

At its May 7 meeting, the Village Board approved the plan for the following cost allocation: 35.36% for Oswego, 24.42% for Montgomery and 40.22% for Yorkville. After the other two communities approve the cost agreement (officially approved in early June 2024), the next step is to formally join the DuPage Water Commission and establish a funding agreement to cover the construction costs.

The goal is to start taking Lake Michigan water in 2028. The Village has been working to leverage federal and state money, including grants and loans, to help offset the costs of the project.

Several other measures have already been implemented including allocating all real estate transfer tax income to the water fund; passing on significant water connection fees to developers; investing in the Village’s water infrastructure to allow minimal water loss from water main leaks; and amending utility rates to ensure that all users pay their fair share.

January 17, 2024

The Village hosted an open house on the new water sources from 5 to 7 p.m. on January 17 at Village Hall. Staff and the Board were available to discuss and answer questions on the connection to Lake Michigan water, as well as new utility rates.  

November 7, 2023 - New water and sewer rate ordinance passed 

At its November 7 meeting, the Village of Oswego’s Board of Trustees approved a new water and sewer rate ordinance to help fund the transition to Lake Michigan water through the DuPage Water Commission in 2027. The ordinance increases the sanitary sewer and water system rates starting on January 1, 2024, and increases each January 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. 

The Village’s goal is to minimize rate increases to customers, ensure that all water and sewer customers pay their fair share in rates, have the funds necessary to connect to Lake Michigan, and properly maintain the existing water and sewer system. Over the last several years, the Village has taken several actions to offset the project’s costs, including the passage of a real estate transfer tax referendum that allocates all revenue to the water fund, passing on significant water connection fees to developers, and investing in the Village’s water infrastructure to allow minimal water loss due to water main leaks and other challenges.

The Board’s approval comes after a water and sewer rate study was conducted earlier this year that considered several scenarios to increase rates. The study was updated on September 18, 2024 to clarify that ¾” meters do not account for “most if not all of the Village’s residential and Senior users," but did not change the recommended rate increases. After presentations and discussion at meetings over the last several months, the Board chose the scenario that will create the lowest bill for typical residential customers. Those who qualify for the senior utility discount will continue to receive half off the usage portion of the water bill, as well. Learn about the qualifications for the senior utility discount here. 

Water rates were initially expected to more than double, however; the study found ways that the Village can offset project costs, and as such utility bills are only expected to increase by approximately 4.5% to 6% annually, over the next 8 years. The Village will review the costs on an annual basis to ensure the rates are adjusted accordingly. The study also determined that the new rates are in line with other communities that receive Lake Michigan water.

The Village’s current rate structure charges every customer without regard to their meter size and usage, and every user pays the same rate. The new rates will be implemented with a “fixed scaled meter” charge, a fixed fee based on the meter size, as well as a “residential inclining block” and a “commercial/industrial inclining block” rate based on usage categories. The rates are graduated based on the size of the water meter and the amount of usage by the customer. Smaller users, including residents and those who may qualify for the senior utility discount, create less impact on the overall water system so they will pay less. Likewise, larger users have more impact on the overall system so they will pay more.

The new rate structure will be implemented in several steps. Starting in January 2024, the rate for all sewer users will increase 4% annually. The sewer rate pays for sewer line maintenance, infiltration/inflow studies and sewer line repairs. Residents eligible for the Kendall and Will County resident assessment freeze will continue to see a 50% discount on the sewer rate.

Next, the monthly service charge, a fixed charge to offset costs that doesn’t vary based upon use, will increase by $2 in 2024, $1 in each year from 2025 to 2027, and $2 in each year from 2028 to 2031 for ¾ inch meters, which is the standard residential meter size. All meter sizes will be billed the same in 2024. Beginning in 2025, the rate for all meters above ¾ inch will be increased to address their proportional impact. Meters larger than ¾ inches will increase by the ratio of their diameter to a ¾ inch meter. For example, a 1-inch meter will be 1.78 x the fee to a ¾ inch meter.

Lastly, volumetric water rates will increase 4% in 2024 and 5% in 2025. Beginning in 2026, water will be billed based on an inclining block rate. The inclining block establishes progressively higher rates for higher bands of volume. For example, a customer using 17,000 gallons of water over a bimonthly period in 2026, the volumetric fee will be computed as follows:
0 to 15 kgal = 15 kgal x $8.39/kgal = $125.85
15 to 17 kgal = 2 kgal x $8.72/kgal = $17.44
Total water volumetric bimonthly fee for 17,000 gallons: $125.85 + $17.44= $143.29.

The new fixed scaled meter with universal inclining block water volumetric rate allows the Village to prorate its revenue requirements more equitably across its diverse customer base. The Village continues to find ways to offset the cost of the project to residents which is currently estimated at approximately $73 million for the Village’s share. The rates will be adjusted accordingly as the Village conducts engineering studies over the next two years, continues to work with Montgomery and Yorkville to help offset costs, and receives additional federal and state funding and loan opportunities.

The connection to Lake Michigan water offers many benefits including a sustainable water source, soft water that allows users to dispose of water softeners and filters, as well as minimal mineral buildup on plumbing and appliances.

The Village will continue to post information about rate changes and new water source updates on this page. 

October 12, 2023

Another presentation on the new water source was shared at the Committee of the Whole meeting at 6 p.m. on October 17 at Village Hall. The Board continues to review and discuss future water rates as Lake Michigan water is on target to be connected in 2027.  

August 24, 2023

A recap of water source information, as well as a presentation on water rates was presented at the August 22 Committee of the Whole meeting. Watch the meeting here and view the PowerPoint presentation. This is very preliminary information on water rates since the full cost of the project has not been finalized. Additional presentations will be made at future board meetings. 

August 18, 2023

The Village of Oswego is continuing its work to secure a new water supply and the goal to obtain Lake Michigan water through the DuPage Water Commission is on track for 2027.

The Village received its Lake Michigan Water Allocation Permit from the Illinois Department of Natural Resources on August 10 which allows the project to move to the next step. As part of a year-long process to obtain approval from the state, the Village had to meet several criteria for permission to tap into Lake Michigan water including evidence that the aquifer is no longer able to meet the community’s needs and that other water source alternatives are not as viable. View the order here. 

To share the cost of the project, the Village is partnering with Montgomery and Yorkville. At its August 22 Committee of the Whole meeting, the Oswego Village Board will hear the first of several presentations on the water rate study.

 The Village continues to find ways to offset the cost of the project to residents which is currently estimated at approximately $73 million for the Village’s share. Federal grants and low-interest loans will help reduce the total cost of the project, as well as continued revenue from the Village’s real estate transfer tax that was approved by referendum in 2022.

The Board approved money earlier this summer for the engineering phase that will be accomplished over the next two years and will further refine cost projections.

Long term, the Village’s current underground aquifer will not meet needs of the region, which has prompted the ongoing project to secure access to Lake Michigan.

Continue to stay up to date on the Village’s progress to connect to Lake Michigan Water on this web page and by subscribing to the Village’s email newsletter.

Our region's source of drinking water is a deep underground reservoir, or aquifer.  According to the Illinois Office of Water Resources, water is being withdrawn twice as fast as it is being replenished.  Quite simply, we will run out of fresh drinking water sometime within the next twenty years.  The Villages of Oswego and Montgomery have joined with the United City of Yorkville to evaluate potential sources of water to sustain our beautiful communities.

"If we run out of water, we don’t have a community. Businesses and residents want to know that they have safe, clean drinking water that’s affordable.” 

-Jennifer Hughes, Public Works Director ONTO 2050 Plan

 Source Options

The Village of Oswego, along with our partners from the Village of Montgomery and the United City of Yorkville, hired water engineering consultants to identify an alternate water source. These potential sources include piping water from Lake Michigan or constructing a water treatment plant on the Fox River. Either option would increase the cost of water,  but will guarantee a supply of fresh drinking water for following generations of Oswegoans.  Doing nothing, including preventing future growth in the region, is not a viable option.

Three options were studied to get to Lake Michigan water: DuPage Water Commission, forming a new water commission with the City of Joliet, or connecting to Illinois American water near the Village of Plainfield.  Each option has pros and cons to be considered that go beyond the cost of connection.

On December 14, 2021, the Village Board affirmed its preference to obtain Lake Michigan water through the DuPage Water Commission.

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Study Report

The Village of Oswego has partnered with neighboring municipalities to study the cost, sustainability and other implications for these alternate water supply options.  We have broken out the study by topics below for ease of use.  

Decision-Making Process

The Oswego Village Board held a series of presentations and discussions throughout 2021 during its Committee of the Whole meetings to inform themselves and the community about the options.  Due to the volume of information, the presentations followed the parts in the study report.  The goal was to select a new water source by the end of 2021.  The need to make the decision in this timeframe is driven by the diminishing water supply; the desire to avoid costly system improvements if a new source is not selected; and the established timeframe to join the new water commission being developed by Joliet, if the village desires to pursue this alternative. 

• Tuesday, June 8, 2021: Part 1 - Purpose, Needs & Options
• Tuesday, June 22, 2021: Part 2 - Options Details and Considerations
• Tuesday, July 13, 2021:  Part 3 - Conservation Measures
• Wednesday, September 15, 2021: Part 4  - Joint Public Meeting
• Tuesday, October 5, 2021: Part 5 - Cost Analysis
• Tuesday, November 16, 2021: Questions & Answers about Information to Date
• Tuesday, December 14, 2021: Part 6 - Final Decision 

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