Oswego Water, Sewer Rates To Increase To Help Fund New Water Source

OSWEGO, IL — Oswego water and sewer bills are going to see an increase take effect in January in order to help fund the transition to Lake Michigan water through the DuPage Water Commission, coming up in 2027.

Village Board trustees approved Tuesday night a new ordinance that imposes increased rates beginning in January. Rates will go up annually on Jan. 1 through 2031.

Utility bills, including the sewer rate and fixed water fees, will increase between 4.5-6 percent annually over the next 8 years.

Water rates were initially expected to more than double, officials said. An earlier start — in January, rather than in May — contributed to the lower rates, according to a study, which also found the new rates are in line with other communities that receive Lake Michigan water.

"The Village’s goal is to minimize rate increases to customers, ensure that all water and sewer customers pay their fair share in rates, have the funds necessary to connect to Lake Michigan, and properly maintain the existing water and sewer system," a news release reads.

The first utility bill to reflect the change will be issued in March, officials noted.

RELATED: Oswego's Drinking Water Supply Could Run Out By 2050: Village

Starting in 2024, sewer rates will increase by 4 percent each year. Taxes collected fund sewer line maintenance and repairs as well as infiltration and inflow studies.

The rate structure will also change. The current method charges every customer without regard to their meter size and usage. But the new rates will be with a "fixed scale meter" charge, based on meter size, plus a "residential inclining block" and a "commercial/industrial inclining block" rate based on usage categories, meaning locals who use less will pay less.

The monthly service charge, a fixed cost for the standard residential meter size of three-fourths-inch, will increase by $2 in 2024, $1 each year from 2025-2027, and $2 each year from 2028-2031. Meters larger will increase to address their proportional impact. For example, a 1-inch meter will be 1.78 times the fee of a three-fourths-inch meter, officials said.

Volumetric water rates will increase by 4 percent in 2024 and 5 percent in 2025. Beginning in 2026, water will be billed based on an inclining block rate, which establishes progressively higher rates for higher bands of volume.

"The rates will be adjusted accordingly as the Village conducts engineering studies over the next two years, continues to work with Montgomery and Yorkville to help offset costs, and receives additional federal and state funding and loan opportunities," reads a news release.

Residents eligible for the resident assessment freeze in Will and Kendall counties will continue to receive a 50 percent discount on the sewer rate.

"We're very fortunate that the necessary rate increases are much less than we first expected when we began studying the switch to Lake Michigan water," Village President Ryan Kauffman said in a statement. "The new rate structure will ensure a more equitable rate for all water users and cause the least amount of impact on our residents, especially seniors."

The water and sewer rate study was conducted earlier this year and considered several scenarios to increase rates. The Board ultimately chose the scenario that would create the lowest bill for typical residential customers and seniors, who will continue to pay half of the standard rate, according to a news release.

Officials said they continue to look for ways to offset the cost of the project between Oswego, Montgomery and Yorkville. Oswego's share is estimated to be about $73 million.

RELATED: Oswego Gets Permit To Use Lake Michigan Water After Year-Long Process