Oswego trustees review three water-rate scenarios as Lake Michigan connection costs rise

Oswego, Ill. — The Village of Oswego Board of Trustees on April 8 reviewed an updated water and sewer rate study showing capital costs for the community’s Lake Michigan connection and related projects have increased to about $130,100,000, prompting staff to present three alternative rate scenarios and seek policy direction.

Finance Director Andrea Lambert and Baxter & Woodman consultant Mark Seifert told trustees the study updates the 2023 analysis after more detailed project scoping. “Cost estimates have increased since that time necessitating an update to the study,” Lambert said. Seifert emphasized the need for flexibility in financing: “A word you’re gonna hear a lot from me tonight is flexibility.”

Why it matters: The board must adopt a rate ordinance timed with the FY2026 budget that preserves required operating and debt reserves while funding construction and loan repayments for the Lake Michigan connection and other system upgrades. The study assumes a $60,000,000 WIFIA loan (roughly 49% of eligible project costs), two GEO bonds ($20 million and $16 million) and an IEPA low-interest loan (~$15.5 million, competitive). Baxter & Woodman estimated the village could save up to $12,000,000 by…