Oswego board to include $600,000 grocery-tax rebate and 2% levy cut in draft 2026 budget

Oswego officials told residents they will present a revised 2026 budget on Nov. 18 that includes a $600,000 transfer from the general fund to the water and sewer fund to create a grocery-tax rebate line on water bills, a $10,000 increase in the village's annual senior-center contribution and an assumed 2% property-tax levy-rate decrease.

Andrea, a village staff member who reviewed follow-up items from the Oct. 25 budget workshop, said recent line-item corrections — including removing a duplicated 5% allocation for a Main Street water-main project and a $100,000 correction to police-dispatch costs — increased the projected general-fund surplus from $1,053,193 to $1,131,118. "The budget that comes back to the board for a vote on November 18 will include a $600,000 transfer out of the general fund into the water and sewer fund," Andrea said, adding the draft will still show about a $500,000 surplus in the general fund.

The $600,000 transfer would be used to offset water-bill increases for residents by showing a grocery-tax rebate as a line item on monthly bills. Trustees debated alternatives — including a one-time $50 check to households, a one-time $50 credit, or an $8-per-bill recurring credit — weighing immediate relief against using surplus to reduce long-term borrowing costs. One trustee summarized the choice as tactical: "Do we want to benefit residents today? Or do we want to benefit residents 20, 30 years from now?"

Board members discussed how the rebate would interact with upcoming water-rate decisions. Staff said the DuPage Water Commission bidding process will conclude in early 2026 and that a final spring rate discussion will incorporate bid results. Andrea noted administrative complexity as the reason the village would not send individual checks to each household and that putting a credit on the bill is administratively simpler.

The board also agreed to increase the senior center's annual contribution from $50,000 to $60,000 after a request from the senior center, and to leave in place a 2% levy-rate decrease in the draft unless the board directs otherwise. Andrea provided EAV figures showing the estimated 2025 assessed value (EAV) at $1,541,185,255, a roughly 10.02% increase from 2024, while cautioning final EAVs may change until the county assessor completes valuations in spring.

Trustees pressed staff on debt service mechanics and learned the current bond structure does not allow additional principal prepayments. That limitation shaped arguments for and against using surplus now versus reserving funds to reduce future interest costs.

What happens next: staff will revise the budget to include the board's direction and return the draft for a formal vote on Nov. 18. The board also asked staff to address e-bike and e-scooter enforcement questions during upcoming staff reports.