Oswego Village Board OKs proposal to pay down over $2M in water fund debt

Oswego Village Board members voted March 21 to pay down over $2 million of the village’s water fund debt.

Village Finance Director Andrea Lamberg recently presented the debt payment proposal during a Feb. 21 Committee-of-the-Whole meeting.

Lamberg told the board that the village is in excellent financial position to pay off $2,103,400 of its $4,973,400 total outstanding water fund debt with general funds while still maintaining a surplus.

The general fund started fiscal year 2023 on May 1 with a reserve of $18,683,350 and had a surplus of $4.5 million as of Jan. 1. Current village projections show a year-end surplus of more than $2.5 million for fiscal 2023, which will end April 30.

Lamberg said paying down the debt will save the village an estimated $122,347 in future interest fees, lower future budgetary needs and put the village in a better financial position when the time comes to borrow funding for Lake Michigan water sourcing.

In two separate votes, Village Board members voted unanimously to pay down $1,930,000 in bonds and a $173,400 loan from the Illinois Environmental Protection Agency.

After the debt payments are made, the village’s remaining water fund obligation will be $2,870,000 and the village will have an estimated remaining general fund surplus of about $400,000 at the end of fiscal 2023.