Oswego’s water and sewer rates will increase beginning next spring to help fund the village’s transition to Lake Michigan water with a connection through the DuPage Water Commission in 2027.
The Oswego Village Board recently approved a new water and sewer rate ordinance that increases rates effective Jan. 1, 2024, and every first of the year through 2031. The first utility bill to reflect the rate increase will be issued in March 2024, village officials said.
“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,” Oswego Village President Ryan Kauffman said in a news release.
The village set out 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,” village officials said in the release.
Oswego officials said the village took several actions over the past few years to offset the project’s costs, including passage of a real estate transfer tax that pledges all revenues to the water fund, passing on significant water connection fees to developers and investing in the village’s water infrastructure to cut down on water loss due to water main leaks and other challenges.
A water and sewer rate study was conducted earlier this year that considered four scenarios to increase rates. Trustees reviewed the consultant’s analysis over recent months and “chose the scenario that will create the lowest bill for typical residential customers and seniors,” officials said in the release.
The senior rate continues to be half of the non-senior rate, according to village officials.
The future rates to be charged are “in line” with what other communities charge that receive Lake Michigan water, according to officials.
“The new rate study structure will ensure a more equitable rate for all water users and cause the least amount of impact on our residents, especially seniors,” Kauffman said.
According to the news release, the village’s current rate structure “charges every customer without regard to their meter size and usage, and every user pays the same rate.”
The new rates will be implemented with a “fixed scaled meter” charge, a fixed fee based on the meter size, as well as a rate based on usage categories. The rates are graduated based on the size of the water meter and the amount of usage by the customer, according to the news release.
Smaller users, including residents and seniors, create less impact on the overall water system so they will pay less, village officials said. Likewise, larger users have more impact on the overall system so they will pay more under the new system.
The new rate structure will be implemented in several steps. Starting in January 2024, the rate for all sewer users will increase 4% annually. The sewer rate pays for sewer line maintenance, infiltration and inflow studies and sewer line repairs, according to officials.
The monthly service charge, a fixed charge to offset costs that don’t vary based upon use, will increase by $2 in 2024, $1 in each year from 2025 to 2027, and $2 each year from 2028 to 2031 for the standard 3/4-inch residential meter size. All meter sizes will be billed the same in 2024. Beginning in 2025, the rate for all meters above 3/4 -inch will be increased to address their proportional impact, officials said.
Lastly, rates charged for volume of water used will increase 4% in 2024 and 5% in 2025. Beginning in 2026, water will be billed based on an inclining scale which will establish progressively higher rates for those who use more water, according to the news release.
Village officials say they are continuing to look for ways to offset the cost of the Lake Michigan water project, which is currently estimated at approximately $73 million for the village’s share. Oswego continues to work with Montgomery and Yorkville to help offset costs. Those towns are also switching to Lake Michigan water.
“The connection to Lake Michigan water offers many benefits including a sustainable water source, soft water that allows users to dispose of water softeners and filters, as well as minimal mineral buildup on plumbing and appliances,” according to the release.
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For more information about the water source project and the new water and sewer rate structure, go to oswegoil.org/water.
Linda Girardi is a freelance reporter for The Beacon-News.