Village Plans Big Water Upgrade with New Bonds

The village board has agreed to borrow up to $27. 2 million in bonds for a water and sewer overhaul. The project will move the town from well water to Lake Michigan supplies through a link with the DuPage Water Commission. Three towns—Oswego, Yorkville and Montgomery—decided in December 2021 to make the switch. The decision follows warnings from the Illinois State Water Survey that local groundwater could be gone in 20 to 40 years. Planning started back in 2014, and the risk of depletion has pushed officials to seek a safer source. Funding will come from two bond issues and a federal loan from the EPA. One bond was issued last summer; the next will happen in July, according to the finance director.The new bonds are meant to cover costs that the DuPage Water Commission will face through the end of the year. In October 2024, the village approved a contract to buy water from the commission. The agreement also says the commission will build, own and maintain the main lines that bring water to all three towns. Oswego will pay about 35 percent of the main’s construction costs. Village staff have been named “designated representatives” who can sell the bonds. The plan allows flexibility because bond market conditions can change. Final debt terms will only be known once pricing is set, and the village intends to use water and sewer revenue each year to repay the debt. The move aims to secure a reliable water supply while managing costs responsibly.