On October 1, 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.

"These agreements mark a significant step forward for the Village of Oswego to connect with a sustainable water source," Village President Ryan Kauffman said. “This project reflects our commitment to investing in infrastructure that will allow us to better serve the community. I’m proud of the collaborative efforts that made it possible.”

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.  

For more information about the new water source project, visit www.oswegoil.org/water.