The Pleasanton City Council has unanimously declared its intent to issue up to $16.5 million in bonds this year to fund capital projects identified in the city’s 2024 water-system management plan. The council expects to return on Sept. 15 for formal approval of the bond sale.
City officials noted that lower-than-expected interest rates could reduce debt costs by approximately $5.5 million compared to initial projections. While the management plan assumed a 6% interest rate and a 30-year repayment schedule, current financing options estimate rates closer to 4%. This shift allows the city to consider a faster 20-year term instead of the originally planned 30 years.
Mayor Jack Balch and Vice Mayor Matt Gaidos requested a comparison between the two repayment terms before making a final decision. Balch stated that locking in the lower interest rate might provide enough financial flexibility to avoid the higher costs associated with the longer term.
City Finance Director Susan Hsieh described the bonds as presenting little financial risk because they are backed by revenue from the water system and ratepayers. She noted that as long as the city continues to generate income from these sources, it should be able to repay investors.
The funds will support work scheduled for the current fiscal year, including meter replacements, design and construction of new wells, emergency-power improvements, and distribution-system upgrades. The city also plans to finance $10 million in fiscal year 2027-28 and another $10 million in fiscal year 2028-29.
