Oswego board directs staff to add $600,000 water rebate transfer, $10,000 senior-center boost and keep 2% levy cut in 2026 budget

OSWEGO, Ill. — The Oswego Village Board on Monday reviewed corrections to the draft 2026 budget and directed staff to include three key items in the ordinance scheduled for a Nov. 18 vote: a $600,000 transfer from the general fund into the water and sewer fund to support a grocery-tax-based rebate to customers, a $10,000 increase to the senior center annual contribution, and a 2% decrease in the property-tax levy rate as currently projected.

Andrea, the staff presenter, told trustees that after correcting several line-item errors — including removing a 5% double-charge for the Main Street water main and an MFT double-booking for Wolf’s Crossing — the projected 2026 general fund surplus increased from $1,053,193 to $1,131,118. She also said a revised estimated equalized assessed value (EAV) from the Kendall County assessor lowered the revenue projection and creates an additional $22,075 requirement to preserve a 2% levy decrease if the board chooses that option.

The board debated how best to use the grocery-tax proceeds. Some trustees favored immediate relief to residents through a recurring bill credit; others argued the money would more effectively lower long-term costs if used to reduce debt principal on the Lake Michigan water connection project. Trustee discussion centered on tradeoffs between near-term household relief and long-term debt-service savings.

"The surplus in the 2026 budget changes from $1,053,193 to $1,131,118," Andrea said while summarizing the corrections. "If the board takes no action, the surplus of $1,131,118 will remain in the 2026 general fund budget. Any amount that the board directs to a specific purpose will change that surplus."

On the rebate mechanics, staff explained that administratively it is easier to place a credit on each water bill than to send individual checks. The board discussed two formats that had been considered: a one-time $50 check or an $8 credit per bill (about $50 per year) reflected on each billing cycle. Trustees confirmed the $8-per-bill option would show as a line item on monthly bills and staff said a first credited bill would likely appear in March for January–February 2026 usage.

Meeting leadership summarized consensus: "I'm hearing a strong consensus — five in favor — of crediting the water," the clerk said. The board did not take a formal roll-call vote at Monday’s meeting; instead, staff received direction to include a $600,000 transfer to the water and sewer fund, a $10,000 increase to the senior center contribution (raising it from $50,000 to $60,000), and the 2% levy-decrease assumption in the draft ordinance for consideration and formal vote on Nov. 18.

Andrea noted the budget packet also lists the 2024 EAV of $1,400,840,731 and the 2025 estimated EAV of $1,541,185,255 (a 10.02% increase in the estimate provided in the packet), and reminded the board that the assessor’s final numbers may change through the administrative objection process in the spring.

Next steps: staff will prepare the ordinance for the Nov. 18 meeting that reflects the board’s direction; trustees may still amend or reject those items at the formal budget vote.