Village Plans Big Water Upgrade with New Bonds

Village Board Approves $27.2 Million Bond Issuance for Water & Sewer Overhaul

The village board has agreed to borrow up to $27.2 million in bonds for a comprehensive water and sewer overhaul.

• Source Switch: The project will transition the town from well water to Lake Michigan supplies via a link with the DuPage Water Commission.
• Participating Towns: Oswego, Yorkville, and Montgomery agreed to the switch in December 2021.
• Urgency: The Illinois State Water Survey warned that local groundwater could be depleted in 20–40 years, prompting the move.
• History: Planning began in 2014; the depletion risk accelerated action to secure a safer source.

Financing Structure

• Two bond issues plus a federal EPA loan will fund the project.
• One bond was issued last summer; the next is slated for July, per the finance director.
• The new bonds cover costs the DuPage Water Commission will incur through year‑end.

Contract & Responsibilities

• In October 2024, the village approved a contract to purchase water from the commission.
• The agreement stipulates that the commission will build, own, and maintain the main lines supplying all three towns.
• Oswego will contribute roughly 35 % of the main’s construction costs.

Bond Sale & Repayment

• Village staff are designated representatives authorized to sell the bonds.
• The plan allows flexibility for changing bond‑market conditions; final debt terms will be set once pricing is finalized.
• The village intends to use annual water and sewer revenue to repay the debt.

The initiative aims to secure a reliable water supply while responsibly managing costs.