How 3 Illinois Towns Are Sharing a Big Water Project and Why It’s Taking Longer Than Planned

Three towns in Illinois—Yorkville, Oswego, and Montgomery—are teaming up to build a huge water pipeline system that will connect them to Lake Michigan. The project costs over $400 million and aims to replace their shrinking underground water supply with a more reliable source. But progress is slower than expected because the city’s $170 million federal loan is stuck in review. The money was supposed to help cover most of Yorkville’s share, but delays from federal agencies mean the city might have to find other ways to pay the bills. City leaders say the U. S. Environmental Protection Agency (EPA) is short-staffed, which has pushed back loan approvals nationwide. Yorkville expected the loan to be finalized last year, but now it’s unclear when—or if—the funds will arrive. Meanwhile, construction is moving forward, with crews already digging in Kendall County. Some early bids came in shockingly high, nearly double the original estimates, but newer bids look more reasonable.If the loan doesn’t come through in time, Yorkville could face its first bill from the DuPage Water Commission this summer. Without the federal money, the city might have to issue local bonds or use a line of credit instead. A new city rule lets them borrow up to $225 million if needed, but they’d only use part of it. The goal is to keep options open without adding unnecessary debt. To pay for the project, Yorkville is also raising water rates by 20% each year for five years. By 2030, the average bill could double, and if costs keep rising, the increases might get even bigger. The federal loan itself won’t be paid back for 35 years, meaning today’s residents will still be covering payments in the 2060s. The big question is whether the project will stay on budget and on schedule. With multiple phases left and federal help delayed, the towns are keeping plans flexible to avoid surprises.