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Oswego board directs staff to place residential tap-on fee increase on next agenda
Summary
Staff recommended, and trustees signaled support for, raising the residential water tap-on fee by $3,000 to $5,200 per unit; trustees agreed to keep commercial fees unchanged for now and asked staff to place an ordinance on the next board agenda with immediate effect upon approval.
Dan (staff) briefed the Committee of the Whole on proposed changes to water tap-on fees, describing the charge as a per-connection fee that funds the village's water and sewer capital funds and is distinct from development impact fees.
Staff reviewed the fee history: a $5,000 residential fee in 2007, an increase up to $7,200 during the 2010 recession-era adjustments, and a reduction to $2,200 in 2015 when the village restructured fees during a different infrastructure phase. Staff said a recent benchmarking exercise compared Oswego with nine communities and highlighted Yorkville and Plainfield as the most relevant comparators.
"The staff recommendation is that the village board consider increasing water tap on fees. We're comfortable with an increase of $3,000 to bring it to $5,200," Dan said, proposing a single flat per-unit fee that would apply to single-family homes, townhomes and apartment units for simplicity and predictability.
Trustees discussed competitiveness, affordable-housing impacts and commercial equity. Staff noted Yorkville currently charges about $7,500 and is projected to reach about $10,500 by 2028; Plainfield's single-family/townhome fee is about $3,300 and the firm found a $0 fee for apartments in Plainfield. Trustees expressed concern that raising fees increases the purchase price for new buyers and could affect affordable housing without additional incentives. Staff and trustees discussed alternatives including density bonuses, fee reductions for designated affordable units, or targeted incentives.
Several trustees said they supported increasing the residential fee but not commercial fees. Staff said an ordinance could be placed on the next village board meeting agenda for approval and would take effect immediately on adoption; staff indicated that annexations or approvals in July 2025 and later would be subject to the new fees.
The president observed consensus around the $3,000 residential increase and staff said that direction was sufficient to prepare an ordinance for the next board meeting.
No formal vote was recorded at the Committee of the Whole; the board directed staff to prepare the ordinance and return it for consideration at the next board meeting.
