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Oswego approves $24.3 million bond issuance for Lake Michigan connection via DuPage Water Commission
Summary
The Village Board approved issuing up to $24.3 million in general obligation bonds to cover near-term cash needs for the village's connection to the DuPage Water Commission and Lake Michigan water, supplementing an expected WIFIA loan and other funding sources.
The Village Board on May 6 authorized up to $24,300,000 in tax-exempt general obligation bonds to finance near-term costs for Oswego’s planned connection to the DuPage Water Commission and Lake Michigan water.
Village staff said the project’s estimated local share is roughly $88 million for construction plus about $11 million for a capital cost recovery charge; the village intends to use a Water Infrastructure Finance and Innovation Act (WIFIA) loan to cover up to 49% of project costs and two debt issuances for the balance. The bonds approved on May 6 are intended to provide about $20 million to meet the village’s expected 2025 cash needs while WIFIA closing and final cost estimates are completed.
Andrew (staff/finance) told trustees the bond illustration in the packet used conservative interest-rate assumptions given market volatility and that final debt service will be determined at sale. "The interest rates were conservative," he said. The board voted to approve the ordinance authorizing the issuance and sale of the bonds.
Trustees noted the size of the issuance and the long-term importance of securing reliable water supplies for the village. The motion passed on a roll-call vote with all trustees present voting yes.
