Oswego trustees direct staff to draft ordinance to retain 1% grocery tax; debate centers on dedicating revenue to water and sewer fund

The Village of Oswego Committee of the Whole instructed staff to prepare an ordinance to retain a 1% local grocery sales tax after state legislation repeals the statewide tax effective Jan. 1, 2026, and set a goal to consider the ordinance in June or July so the village can meet the Illinois Department of Revenue filing deadline if it chooses to proceed.

The discussion mattered because staff estimated the grocery tax base at roughly $1.0 million to $1.25 million in 2024 (calendar-year receipts in the food category were about $913,000 in 2023), and trustees debated whether the revenue should continue to support the village general fund or be dedicated to the water and sewer capital fund to reduce the scale of upcoming water rate increases.

During the public forum, resident Ed Bradley urged trustees to continue collecting the 1% grocery tax and to dedicate the revenue to the water and sewer capital fund. "I recommend that the Village continue collection of the current 1% grocery tax starting in 2026," Bradley said, adding that he preferred directing the revenue to water and sewer capital rather than placing it in…