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The Pleasanton City Council, along with the city’s Joint Powers Financing Authority, is set to consider approving a resolution Tuesday that would authorize the city’s plan to issue $16.5 million in water revenue bonds.
If approved by the council and the financing authority, an agency formed by the city and its housing authority to assist Pleasanton with “municipal financing transactions”, the issuance of the revenue bonds will help the city pay for projects like the design and construction of Pleasanton and Zone 7 Water Agency’s joint groundwater supply project.
“The Authority plans to issue water revenue bonds to help the city finance the acquisition, construction, and improvements to the city’s water systems,” the City Council agenda report states. “The city will purchase those projects from the Authority pursuant to the Installment Sale Agreement.”
For years, Pleasanton has been looking for ways to financially strengthen its water enterprise fund, which supports capital improvement projects to the city’s potable water system. At the same time, the city has also been trying to assess options to begin addressing over $73 million in infrastructure, operational and maintenance needs.
So, back in May 2024, the City Council decided to approve the issuance of $19 million in water revenue bonds, which were used to fund near-term water system projects and other infrastructure improvements.
Those bond dollars were also used to explore the feasibility and design of the city and Zone 7’s joint groundwater supply project, which recently moved to the next phase of development after the council gave staff the green light to move forward on a contract with the water agency.Â
But as those near-term improvement projects are almost all completed — and as the city and Zone 7 get ready to move into the design and construction phases for the two new groundwater wells in Pleasanton — the City Council is now looking to issue a new set of water revenue bonds.
According to Tuesday’s staff report, the city identified the need to issue “approximately $35 million in additional debt-financing through 2030 to implement the City’s water capital improvements”, following the completion of its 2024 Water System Management Plan and water rate study in 2025.
This is in addition to the $19 million water revenue bonds that were already issued in 2024.
“The anticipated financing schedule includes approximately $15 million in FY 2026/27, $10 million in FY 2027/28, and $10 million in FY 2028/29,” the staff report states.
The vote for issuing $16.5 million in water revenue bonds now comes after the City Council previously declared its intent to reimburse money spent on capital improvements made to the city’s water system with future bond dollars.
If approved and authorized by the council and the financing authority, the bond dollars would be used to finance all or a portion of the following: water meter and advanced metering infrastructure system replacement; design and construction of the groundwater supply project; construction of water system emergency power improvements; annual water distribution system improvements; and other water system capital improvements.
According to the staff report, the bonds are projected to have a true interest cost of 4.29%. Issuing the bonds is expected to cost about $264,400.
“The principal and interest payments, together, on the Bonds will be approximately $1 million each fiscal year until final maturity,” according to the staff report. “Debt service is expected to total approximately $24.65 million over the next 25 years.”
The Pleasanton City Council meeting is scheduled to begin at 7 p.m. Tuesday (Sept. 15). The full agenda can be accessed here.
In other business
* The council will be providing direction to the city’s voting delegate in advance of the 2026 CalCities Annual Conference General Assembly, an annual event where city officials from across the state can participate in “the development of Cal Cities policy” by casting a vote.
This year’s voting delegate, who will be briefed on Pleasanton’s resolution for the annual conference, is Councilmember Craig Eicher. He was appointed by the council in July.
* During the consent calendar, which are items considered routine and are typically approved by a single vote, the City Council will be voting on ratifying appointments to the city’s many commissions and committees.
Those new commissioners and committee members will later be sworn in during an oath ceremony that will take place during the meeting open to the public portion of Tuesday’s council meeting.
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