The Department of Water Management is among the city’s largest, both by budget and headcount. In the 2027 proposal DWM has the fifth-largest budgeted appropriations total and the third-largest budgeted headcount, after the fire and police departments.
Department of Water Management Snapshot: Appropriation & Staffing Changes from 2026 Budget
DWM’s budget increased dramatically in the 2026 budget, with the increase primarily driven by a federal disaster relief grant for stormwater infrastructure. The 2027 proposal largely retains the elevated spending levels, with appropriations up 1.4% from the heightened 2026 levels.
The additional grant funding has not driven significantly expanded headcount. DWM is up a net nine positions this year, after remaining flat in the previous year’s budget.
Setting aside title changes, promotions, and similar adjustments of positions within general job categories, the department’s proposed net increase of nine positions/FTEs includes an expansion of marine operations, with two additional Marine Pilot positions, and one additional position each in the Deck Hand and Marine Engineer titles. The proposal also adds a General Counsel and IT Engineer position, titles that were not in the previous year’s budget.
Construction of buildings and structures is the largest single-category appropriation in DWM’s budget (largely driven by the $221.3 million from the federal stormwater infrastructure grant), followed by wages and salaries on payroll.
The 2027 proposed budget adds a new $3.4 million appropriation from the water fund for MSD User Charges, which was not in prior years’ budgets.
Historical Context
DWM’s budgeted appropriations increased dramatically in the 2026 budget, leaping from $417.2 million in 2025 to $772.7 million in 2026, an 85.2% increase.
Prior to the 2026 jump, DWM appropriations had been increasing more slowly at an average rate of 3.8% annually, or 1.4% when adjusted for inflation through 2025, compared to a citywide average rate of 5.5% (inflation-adjusted 3.2%). The current proposal would increase the department’s appropriations by 1.4% from the previous year.
Department of Water Management Appropriations and Inflation-adjusted Appropriations (2025 dollars)
Values in nominal dollars.
Values in 2025 dollars. No supplied inflation factors for 2026, 2027; those years remain gaps.
City budgets do not break out “fringe” pension and benefit costs for non-grant positions by department, instead grouping them together as citywide expenses under the Finance General section of the budget. To better reflect the real cost of service for departmental operations, BGA Policy has included an estimate of pension and benefit costs for the years 2018-2026, using Department of Finance fringe memos from each relevant year. An estimated fringe cost for the 2027 proposal uses the average annual rate of increase for each of the inputs into the fringe formulae.
Based on the city’s fringe formulae, the DWM fringe cost for nongrant employees averaged 24% from 2018-2026, compared to a citywide average of 26.8%.
Department of Water Management Appropriations with Estimated Fringe Cost of Pensions and Benefits for Budgeted Non-grant Positions, 2018–2027 (proposed)
Over the past four complete budget years for which local fund actuals/encumbrances data is available, DWM spent on average 94.6% of its locally funded budget, compared to the citywide average 86.6% local fund spend.
Department of Water Management Local Fund Actuals, 2022–2025
Headcount did not increase at DWM with the substantial budget increase from 2025 to 2026, with the same total positions/FTEs budgeted in 2026 as in 2027.
Overall, DWM’s budgeted headcount grew at an average annual rate of 0.9% from 2011-2026, compared to a citywide average annual change of -0.1%. The current proposal would increase budgeted headcount by 0.4% from the previous year.
Department of Water Management Budgeted Workforce, 2011–2027 (proposed)
From January through September of 2026, the months for which full-time position vacancy data is currently available, DWM averaged a 16.1% vacancy rate, compared to the citywide average of 11.2%.
Department of Water Management Full-time Vacancies, Jan-Sept 2026
189 of the department’s budgeted full-time positions were persistent vacancies (defined as the number of positions within the same combination of title, subsection, section, division, department, and fund codes that remained vacant in all nine months of available data):
Department of Water Management Persistent Full-time Vacancies, Jan-Sept 2026
Setting aside title changes, promotions, and similar adjustments of positions within general job categories, the department’s proposed net increase of nine positions/FTEs includes an expansion of marine operations, with two additional Marine Pilot positions, and one additional position each in the Deck Hand and Marine Engineer titles. The proposal also adds a General Counsel and IT Engineer position, titles that were not in the previous year’s budget.
Department of Water Management Net and Percent Position/FTE Changes, 2026 to 2027 (Proposed) Budgets
DWM is 57.1% locally-funded in this year’s budget proposal, all out of the water and sewer funds, up slightly from the previous year’s 56%.
The bulk of the department’s grant funding comes from the Disaster Recovery Fund, with $221.3 million dedicated to construction of buildings and structures and $29.7 million to professional and technical services from a federal stormwater infrastructure grant.
Department of Water Management Fund Comparison, 2026–2027
Construction of buildings and structures is the largest single-category appropriation in DWM’s budget (largely driven by the $221.3 million from the federal stormwater infrastructure grant), followed by wages and salaries on payroll.
Department of Water Management Top 10 Largest Appropriations, 2027 proposed
In 2025, the most recent complete budget year for which local fund actuals and encumbrances data is available, DWM spent 93.6% of its locally-funded budget.
Department of Water Management 2025 Actual Spend (Local Funds)
The 2027 proposed budget adds a new $3.4 million appropriation from the water fund for MSD User Charges.
Salaries and wages on payroll saw the largest single-category increase in the 2027 proposal for DWM, up $10.1 million (3.9%). The department’s budget also has million-dollar-plus increases in chemical materials (up $2.2 million, or 9.1%), professional and technical services ($1.6 million, 2.7%) and reimbursements to the Department of Streets and Sanitation ($1.3 million, 14.1%).
Department of Water Management Net and Percent Appropriation Changes, 2026 to 2027 (proposed) Budgets
Geoffrey Cubbage analyzes policy and budgets at the Better Government Association, covering state lawmakers and Chicago City Council. He joined BGA in 2022 after directing policy and economic development for Chicago’s 40th Ward.
