Oswego voters will see a referendum question on the June 28 ballot about establishing a new real estate transfer fee as a way to generate revenue to offset future water rate increases due to the village switching to Lake Michigan water.
Trustees recently held a public hearing and approved placing the question for a real estate transfer tax at a rate of $3 per $1,000 of value on all purchases of property in Oswego.
There were no public comments during the hearing.
If approved, the fee would be on the closing of new homes to help generate funding for the costs of Oswego bringing in Lake Michigan drinking water through a connection with the DuPage Water Commission. Existing residents that buy a home within the village would be exempt from the fee.
Oswego, Yorkville and Montgomery in December 2021 decided to go with Lake Michigan water via the commission after years of studies and analysis.
The question will read: “Shall the Village of Oswego impose a real estate transfer tax at a rate of $3.00 per $1,000 of value to be paid by the buyer of the real estate transferred, with the revenue of the proposed transfer tax to be used for construction and maintenance of the Village of Oswego water system, including connection to Lake Michigan water, and lessening the increase of future water rates?”
Trustee Kit Kuhrt was interested in knowing whether the referendum question could be more clearly written so voters understand that it is a real estate transfer tax for new homebuyers coming into Oswego.
State statute puts limits on the specifics of the ballot question and it will be up to the village to provide public information that will explain the measure, village officials said.
State law prohibits the use of public funds to support a referendum question one way or another. However, public funds can be used to disseminate factual information.
“The only leeway the village has is to indicate the rate and the purpose,” Oswego Village Attorney Karl Ottosen said.
The factual information is an important part of the referendum process, Oswego Village President Troy Parlier said.
“Rarely is there a referendum that you are voting basically to invest in your infrastructure that will lower the cost for existing residents. I can see how you would like to see the verbiage differently. It’s an important piece,” Parlier said.
Trustee Tom Guist asked if there was a plan in place to inform voters about the proposed fee.
The village plans to issue information through the media and post a frequently-asked-questions piece on the village’s website, Oswego officials said.
Linda Girardi is a freelance reporter for The Beacon-News.
